Waiver of fixed electricity charges will be restored, KASSIA assured

In order to lessen the impact of COVID-19 on MSMEs (Micro, Small and Medium Enterprises), the State government had ordered the waiver of fixed electricity charges for April and May 2020. However, according to office bearers of KASSIA (Karnataka Small Scale Industries Association), the Bescom officials down the line disregarded the instructions, and in many cases, they only deferred the fixed charges and reversed waiver resulting in confusion.

“The Government Order is very clear, and it wants to extend the facility to the entire MSME fraternity irrespective of whether MSME units operate from their own premises or rented sheds,” said KASSIA president Arasappa K.B., who met Rajesh Gowda, MD, Bescom, to apprise him of the ground realities and the need to take a solution.

The KASSIA team was promised that Bescom would take immediate steps to restore the waiver of fixed charges through suitable deductions in the July bill.

The Bescom also promised that it would accept GST certificates of MSMEs, wherever rental agreements are yet to be renewed for availing concessions and also extending the benefit to all cases where units have multiple workplaces. It was emphasised by the KASSIA that 95% of the MSMEs work from rented sheds. It is necessary to ensure that no one is excluded from availing the benefits on mere procedural grounds.

Later, the KASSIA team met Maheswar Rao, Principal Secretary, Industries and Commerce, and apprised him of the present state of MSMEs, highlighting the need for ensuring that the industry got access to finance and other resources.

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Printable version | Aug 3, 2020 12:55:32 PM |

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