Coimbatore, A Paradise For Start-up Companies In Tamil Nadu

Due to special attention given by CM Stalin, Coimbatore is progressing in the industrial sector in the DMK regime. CM Stalin has a special fondness for Coimbatore which was evident during the Corona period. At the peak of lockdown, Stalin bravely entered the hospital premises in Coimbatore wearing protective gear to cheer the patients.

After coming to power, Stalin allotted 400 crore for road safety works alone in Coimbatore. Preliminary construction works for metro rail and one of the largest elevation flyovers in Tamil Nadu which enables the vehicles to travel 10 km without touching the ground, is going on.

The reason for the special attention on Coimbatore is the presence of e-bike manufacturing, electronics manufacturing and aerospace industries and the Western Ghats. The industries in Coimbatore have the potential to challenge the competition at the national level and the protection of Western Ghats has several environmental benefits. For the protection of Western Ghats and its biodiversity, Stalin has launched many projects including the Nilgiri Tahr conservation project.

Thirumurugan, the General Manager of Coimbatore District Industries Centre said, "In Coimbatore district alone, there are 1.42 lakh Udyam registered operational MSMEs. On account of the vast industrial presence, Coimbatore is known as the Manchester of South India.

A city which existed as a paradise of textile industries has now metamorphosed into a hub of industries which manufactures machineries and engineering related spare parts in India. Coimbatore has also become a hub of MSMEs which comprises 95% of the industries in the city including the industries which manufactures machine spare parts and motor pumps.

Coimbatore is an Indian hub for motor pump manufacturing, a sector worth Rs.6000 crore. Apart from this, Coimbatore is home to multi-sector composite industries like wet grinder manufacturing, compressor manufacturing, auto parts manufacturing, aerospace and defence component industries.

Jewellery manufacturing is now a booming industry in Coimbatore which makes the city stand next to Mumbai in the sector. Pollachi, a taluk in Coimbatore district, is excelling in the coconut based value-added industries. On the whole, in an industrial aspect, Coimbatore is a diverse district in Tamil Nadu.

The Tamil Nadu government is providing loan assistance for the expansion of MSMEs. Accordingly, if a small or micro industry of value 1 crore or with turn-over less than 5 crore is established in any part of Coimbatore, the government will provide 25% investment subsidy and an additional subsidy of 10% (total 35% investment subsidy).

Besides this, if one of the considered 25 types of MSMEs is started in Coimbatore with an investment of upto 5 crore, then the government will provide a maximum subsidy of 1 crore 50 lakhs. Excluding this, CM Stalin has created many schemes to provide subsidies like power subsidy, payroll subsidy, back-end interest subsidy, quality certificate subsidy etc.

The intention behind the provision of subsidies is to give means for the growth of the company and its infrastructure. In the past 2 years alone, 57 crore rupees was given to MSMEs as investment subsidy, power subsidy and payroll subsidy."

Coimbatore District Collector Kranthi Kumar Pati said, "CM Stalin's focus is on Coimbatore when it comes to holding programs related to MSMEs in Tamil Nadu. The recently held industrial conference in Coimbatore proves the importance given by CM Stalin to the city of Coimbatore.

The Needs scheme which is operational in Tamil Nadu was introduced to create new entrepreneurs. The first phase of Annal Ambedkar Business Champions scheme has been implemented to aid the SC (Scheduled Caste) and ST (Scheduled Tribe) entrepreneurs. Under the scheme, a subsidy of upto 1 crore 50 lakhs is given to the entrepreneurs and 35% of the investment is subsidised."

Karuppanasamy, a beneficiary of the scheme said, "I started my own business in 1988 after working in a private company for 8 years. In the initial phases, my small scale company contained a lathe and a drilling machine which later developed into Bharani Groups of organisation, a company with 3 manufacturing units and 500 employees.

Our company's focus is to manufacture hydraulic press machines which were earlier imported from the foreign countries. When all the companies in India were procuring machinery from abroad, I started a small company for the manufacture of hydraulic presses as a service to the automobile industry.

When we came across the scheme introduced by the government for the MSME subsidy, we applied and obtained a huge funding which helped us to increase our workforce and resulted in employment creation. My sincere thanks to CM Stalin for introducing such a scheme."

Although the company has been running for many years, the expansion efforts have been taken by them in the last few years only. The institution benefitted by getting around 50 lakhs subsidy under the Dravidian model government. After the receipt of subsidy, the company's branches also applied for expansion. Another person like Karuppannasamy, started a drone based farming company and received subsidy for the same.