Small scale industries seek soft loans, allocation of `1,000cr

NT Correspondent

The Karnataka Small Scale Industries Association (KASSIA) has demanded Chief Minister Basavaraj Bommai to allocate Rs 1,000 crore to meet the subsidy gap towards the loans granted by Karnataka State Finance Corporation (KSFC).

In its pre-budget memorandum submitted to Chief Minister Basavaraj Bommai on behalf of micro, small and medium enterprises (MSMEs), the KASSIA has sought for soft loans from the KSFC at 4 per cent to both MSMEs as well as start-ups. It has also sought the chief minister to allocate Rs 1,000 crore to meet the subsidy gap towards these loans granted by the KSFC including the accrued amount, apart from restoring electricity tax from 9 per cent to 6 per cent and deferring any hike in tariffs till normalcy is restored in the economy. The KASSIA has stated that it also encourages battery manufacturing units by extending subsidy or grant and special loans at 4 per cent with a rider that the swapping stations should procure their requirement from MSMEs in the State.

It has also demanded the chief minister to provide an additional Grant of Rs 5 crore to complete its flagship infrastructure for the State’s MSMEs, viz. KASSIA Centre of Excellence & Innovation coming up at Dabaspet.

Some of the other demands made by KASSIA in their memorandum include the earmarking of Rs 50 crore to each district for the development of private industrial areas in addition to the KSSIDC Industrial Estates and supply of raw material at reasonable price to MSMEs.

It has demanded the strict enforcement of public procurement as well as 15 per cent price preference to MSMEs by PSUs and large organizations as mandated and earmark 40 per cent of property tax collected in KSSIDC/KIADB industrial areas for the development of industrial infrastructure and allocation of Rs 100 crore to improve infrastructure in private industrial estates in the State.