The Federation of Coimbatore Industrial Associations has appealed to the State government to remove the conditions specified to disburse capital subsidy to micro enterprises.

In a memorandum submitted recently to the Tamil Nadu government, the Federation said the State government gives 25 % to 35 % capital subsidy for MSMEs. However, the units will get the subsidy only if they show 25 % jump in production in three months of installing the machines. The micro units mostly do job work and the orders are given by the larger industries. These are mostly based on long-term contracts and the orders that the larger industries get. Hence, the job working micro units will not be able to show an immediate growth in business. The capital subsidy should be disbursed without this condition, it said.

Further, when industry associations and partnership firms apply online for renewal of registration, they are asked to submit a hard copy at the Registration Department office. If the renewal is kept pending for any reason, it is conveyed to the applicant only when they visit the office again and not over phone or email. Further, there are several instances when the officials say documents are missing online and ask the applicants to pay the mandated amount with retrospective effect, the Federation alleged. It appealed to the State government to remove these hassles in renewal of registration.