30% of pump set manufacturing companies in Coimbatore have closed!

Coimbatore, known as the ‘Pump City’, is facing huge challenges today.

Due to some reasons like high GST on pump sets, lack of loans at low interest rates for pump manufacturing companies, various incentives given by the respective governments to pump set manufacturers in other states, pump set manufacturing companies operating in Coimbatore are struggling to compete with pump set manufacturers from other states.

In fact, it has been reported that about 30% of the pump set companies operating in Coimbatore have stopped operating in the last 2-3 years due to such reasons.

Detailed information:-

Today, raw materials for pump set production in Gujarat are available at lower prices than those available here, and subsidies are provided for electricity used by factories and subsidies for capital. Similarly, many incentives are provided to industrial companies in Madhya Pradesh.

Before the introduction of GST, there was a 11% tax on pump sets. GST. When the pump sets were introduced, there was a tax of 12%. Currently, 18% GST is levied on pump sets.

Under the PM KUSUM scheme of the Central Government, pump sets have been provided to lakhs of farmers in the country and will continue to be provided. Work is underway for this. Due to this, many farmers in the country have not bought the pump sets they usually buy for agricultural use, but have waited to buy the pump sets available under this scheme. But this is not a problem.

Orders have been placed with some large companies to buy pump sets under this scheme. If a manufacturer has to supply pump sets to the government under this scheme, there are many strict rules. Due to this, small and medium enterprises cannot supply their products to the government under this scheme. This is the problem.

The government should try to get pump sets for the PM KUSUM scheme from all manufacturers who have obtained BIS quality certification, and should make it possible for pump set manufacturers in Tamil Nadu to get loans at low interest rates, GST. Those in this sector are making demands to reduce the tax rate.