CODISSIA Urges Centre To Set Up Raw Material Park In Coimbatore To Support MSMEs

Chennai, Jun 13 (KNN) The Coimbatore District Small Industries Association (CODISSIA) has urged the Centre to establish a dedicated raw material park in Coimbatore and strengthen support for MSMEs through improved access to finance, renewable energy incentives and logistics infrastructure.

CODISSIA Seeks Raw Material Park To Ease Input Constraints 

In a memorandum submitted to Prime Minister Narendra Modi, outgoing CODISSIA President Karthikeyan said Coimbatore's annual steel requirement is estimated at 1 million tonnes and called for the creation of a raw material park similar to a manufacturing yard to ensure easier access to critical industrial inputs.

The association highlighted several challenges facing micro, small and medium enterprises, including limited access to finance, raw material availability, energy costs and logistics bottlenecks.

MSMEs Flag Credit And Financing Gaps 

Among its recommendations, CODISSIA called on banks to significantly improve credit flow to MSMEs, particularly micro enterprises. It also proposed the creation of an MSME Association-Bankers Committee to monitor credit disbursement and track the number of units receiving financial assistance.

The memorandum further sought the introduction of a dedicated scheme for rooftop and ground-mounted solar installations in industrial units, similar to the PM Surya Ghar programme available for households.

Logistics Bottlenecks Raise Production Costs 

Addressing logistics concerns, the association noted that rising fuel prices have increased transportation costs for raw materials, adding to production expenses for MSMEs.

CODISSIA said stronger integration of road, rail and port connectivity would improve supply chain efficiency, enhance industrial competitiveness and reinforce Tamil Nadu's position as a major manufacturing and export hub.

MSME Modernisation Key To Global Competitiveness 

The association emphasised that addressing these challenges would help the MSME sector contribute more effectively to GDP growth, exports, employment generation and industrial development.

It also stressed the need for greater focus on technology upgradation, innovation, skill development, training and marketing support to help MSMEs scale up operations and compete globally.

According to CODISSIA, a stronger and globally competitive MSME ecosystem will be essential for achieving India's goal of becoming a USD 5 trillion economy and strengthening its position as a leading global manufacturing destination.

(KNN Bureau)