The industry body representing the MSME sector in Karnataka, KASSIA, has asked the State government to extend a few benefits to help the sector sustain itself. In a memorandum to Jagadish Shettar, Minister of Large and Medium Industries, K.B. Arasappa, president of KASSIA, flagged the need for State departments and public sector undertakings to procure from the State’s MSMEs all their requirements for products, materials and services. “The State should take immediate steps to ensure that notices and penalties are not issued for minor transgressions at least for the current year,” he added.
The association also asked the State to ensure that Karnataka State Financial Corporation is adequately funded to extend loans and advances to the sector at an interest of 4% in these challenging times.
It also sought the removal of or a reduction of the electricity tax levied by the State on SMEs. It expressed disappointment with MSMEs not being given the benefit of the waiver of fixed charges by ESCOMS and the consumers being harassed by officials despite a Government Order. KASSIA sought clear directions in this regard to the ESCOMS so that industry is not unduly harassed.
It also sought a reduction in the stamp duty on loan agreements with banks/financial institutions. KASSIA also sought the erasure of regulatory compliance and inspections wherever feasible.
KASSIA had met Mr. Shettar to congratulate him on the new industrial policy. They said the industry, especially the MSME sector, had continued to reel under the impact of the pandemic due to the disruption in supply chains, absence of demand, labour-related issues, as well as the general economic slowdown. MSMEs, by their very nature, are more vulnerable to such shocks, said the trade body.
