Staff Reporter

Bangalore: Raw material will now be more accessible to small-scale industries, with a memorandum of understanding signed between the Karnataka State Small Industries Development Corporation (KSSIDC) and the Karnataka State Financial Corporation, P. Ganeshan, Managing Director of KSSIDC, has said.

The MoU will facilitate loans of up to Rs. 1 crore for the purchase of raw material, said Mr. Ganeshan at an interactive meeting with members of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) here on Tuesday.

He added that members of Scheduled Castes and Scheduled Tribes can avail themselves of the loan at an interest rate of 4.5 per cent.

An MoU has also been signed with the Steel Authority of India to procure steel at rates “far lower” than those offered by traders, he said.

Mr. Ganeshan said that the State Government had promised the KSSIDC that 25 per cent to 30 per cent of all future industrial land acquisitions would be reserved for small industries.

The KSSIDC has submitted “specific proposals” of Rs. 200 crore, to the special central fund for medium, small and micro enterprises, to improve infrastructure in industrial estates, he said. However, Mr. Ganeshan lamented that several industrial estates acquired by the KSSIDC have “no takers”.

These include plots in Chamarajnagar, Chikmagalur and Belgaum where “we have invested money and even notified the estates”.

R&D hub

The KSSIDC will acquire 300 acres of land in Chitradurga to set up ancillary services for high-profile research and development facilities, said Mr. Ganeshan.

The institutes slated to come up in Chitradurga include a DRDO facility.