Tamil Nadu announces sops for Coimbatore units

Tamil Nadu government has announced sops for industries in Coimbatore.

The city, which houses thousands of small and medium enterprises, is facing power crisis. These sops would cost around Rs 97 crore to the state exchequer, according to an official release here on Friday.

The sops include cut in VAT on gensets to five per cent from 14.5 per cent, reducing margin money on loans provided by Tamilnadu Industrial Investment Corporation Limited for gensets to 10 per cent from 20 per cent and also extending VAT exemption on furnace oil from October 1, 2012 (retrospective effect) to May 31, 2013.

 

J James, president of Tamil Nadu Association of Cottage and Micro Enterprises Association, said the units were facing 14 hours power cut.

Coimbatore is known as one of the largest engineering hubs in the country where components for biycle to aircraft are manufactured. At one time, there were around 50,000 units, but in the last one year around 5,500 units had closed shops and lakhs of people have lost their jobs.