Micro units await details on SME Growth Fund
Micro-enterprises in Coimbatore are expressing uncertainty regarding the SME Growth Fund announced in the Union Budget, fearing it may only benefit larger medium-scale industries. While some industry leaders argue the fund will support international trade participation, others emphasize the lack of clear distribution guidelines for micro-units.
Why it matters
It reflects the ongoing struggle of micro-industries to access government financial support amidst rising operational costs.
The micro industries in Coimbatore district, numbering more than 20,000, are awaiting details on the SME Growth Fund that was announced in the Union Budget this year.
J. James, president of the Tamil Nadu Association of Cottage and Tiny Entrepreneurs, said the fund name denotes that it is for the small and medium-scale units and the micro units may not have any benefit from the fund.
According to C. Sivakumar, president of the Coimbatore Tirupur District Tiny and Micro Enterprises Association, there are no details of how the fund will be distributed to the MSME sector and what it can be used for.
While the micro units that do job work for larger industries are seeing a jump in orders, the high cost of raw materials is affecting viability of operations. The government support is essential for the micro units now, he added.
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