TEA hails green nod for Athikadavu-Avinashi project

COIMBATORE: The Tirupur Exporters Association has welcomed expanding the benefits available under the Prime Minister’s Employment Generation Programme (PMEGP) and the Unemployed Youth Employment Generation Programme (UYEGP) to encourage entrepreneurs.

“The existing project size limit of Rs 10 lakh will be enhanced to Rs 15 lakh and the eligible subsidy under the scheme will be enhanced from Rs 1.25 lakh to Rs 2.5 lakh. This will encourage thousands of budding entrepreneurs. The provision for this scheme has been enhanced to Rs 33 crore in the Budget Estimates 2020-21,” said Raja M Shanmugam, president of TEA.

He also welcomed enhancing the maximum capital subsidy under the NEEDS scheme from Rs 30 lakh to Rs 50 lakh and a sum of Rs 100 crore has been allocated for this scheme in the Budget Estimates 2020-21.

“I also welcome the enhancement of interest subvention under the Technology Upgradation Scheme and the Credit Guarantee Fund Trust scheme from 3 per cent to 5 per cent,” he said.

Some other praiseworthy features of the budget include allocation of Rs 1,224.25 crore in the budget estimates for the handloom and textiles, reduction in stamp duty for rental agreements under the new Tenancy Act to 0.25 per cent from 1 per cent and registration charges on such agreements to 0.25 per cent from 1 per cent subject to a maximum of Rs5,000.

TEA also appreciated the environmental clearance for Athikadavu-Avinashi irrigation scheme with allocation of Rs 500 crore.

It has been a six-decade-old demand of the farmers to revive agriculture in Coimbatore, Tirupur and Erode districts.

Though Bhavani river runs through one part of Avinashi taluk, it doesn’t benefit other areas.

Also, people living in Annur, Tirupur and Palladam were affected by drought due to dipping ground water levels. By diverting the excess water from the Bhavani as many as 24,468 acres of land would get irrigated and surplus water could be tapped for drinking purposes.