The Hindu : Tamil Nadu / Chennai News : Small units feel left out

Online edition of India's National Newspaper
Wednesday, Mar 01, 2006

Tamil Nadu

Tamil Nadu - Chennai

Small units feel left out

Staff Reporter

"Budget fails to address non-flow of credit to the sector"

CHENNAI: The Union budget for 2006-07 has evoked a mixed response from trade and industry in Tamil Nadu.

Several associations of small and tiny industrial units, including the Federation of Associations of Small Industries of India (FASII), the Small Industries Management Association (SIMA), and the Chennai District Small Scale Industries Association (CDISSIA) termed the budget disappointing.

It proves that the Finance Ministry continues to make people believe that the country consists only of multinational companies and corporates, SIMA president V. S. Narasimhan said. He regretted that the budget did not recognise the need to support small and medium enterprises. The non-flow of credit to the sector ought to have been addressed. The much-awaited increase in the exemption limit for excise in SSI escaped the attention of the Ministry, he said.

CDISSIA president T.V. Hariharan said the budget was disappointing due to the increase in the service tax rate from 10 to 12 per cent and the proposed de-reservation of 180 items from the SSI sector.

Stating that the budget did not meet any of the expectations of the sector, Tamilnadu Small and Tiny Industries Association secretary T.C. Dayalan said the fate of SME Bill had not been spelt out. Secretary of the Guindy Industrial Estate Manufacturers' Association G.K. Basha regretted that there was no mention of the small industries.

Describing it as a stable budget aimed at bringing down the revenue deficit, Andhra Chamber of Commerce president Sailesh R. Mehta said the trade and industry were, however, disappointed that the Central Sales Tax had not been reduced. President of the National Chamber of Commerce Syed Muneer Ahmed said given the narrow range of manoeuvrability the Union Finance Minister had done a commendable job. Tamil Chamber of Commerce president S. Santhanam also hailed the proposals.

"No surprises"

All-India Tax Payers Association president Ashok Kumbhat said it was on expected lines and contains no surprises. The salaried class, he said, was expecting some relief in lieu of standard deduction, which was withdrawn in the last budget.

United Planters' Association of Southern India welcomed the proposal to allocate Rs.100 crore to the special purpose tea fund. The association president E.B. Sethna welcomed the reduction in interest rates on loans to farmers.

Energy sector

Welcoming several Budget proposals, including those aimed at uplift of the agricultural sector, K.E. Ragunaathan, chairman of the Tamil Nadu State Board of All India Manufacturer's Organisation, said there was no specific announcement or concession on development of the renewable energy sector.

There was no perceptible proposal to support export from engineering industries.

The Madras Jewellers and Diamond Merchants' Association welcomed the budget.

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