Small-scale entrepreneurs have strongly opposed the State government’s policy of allotment of land for 99-year lease period for micro and small-scale enterprises and demanded industrial sites on lease-cum-sale terms.
Allotment for SMEs on lease-cum-sale terms offer ownership of the plots and provides necessary security to get funds from banks. The current 99-year lease policy was unaffordable for SMEs in view of the upfront payment of lease rent which is over ₹ 1 crore and makes business uneconomical, said Karnataka Small-Scale Industries Association President A. Padmanabha.
Office-bearers of 65 associations representing industries such as hospitality, cinema, garments, commerce and trade attended a pre-budget meeting presided over by Chief Minister Siddaramaiah on Friday and demanded reversal of 99-year lease period envisaged by the Karnataka Industrial Policy 2014-19.
Federation of Karnataka Chambers of Commerce and Industry (FKCCI) President M.C. Dinesh demanded abolition of trade licence to all business sectors. He also urged the government to bring in amendments to abolish trade licence for all entrepreneurs involved in trade and services.
The FKCCI also demanded reduction of APMC cess from 1.50% to 0.5% considering rates of neighbouring States and to declare Bangalore APMC as a consumer 24/7 market.
With many countries such as Japan, South Korea, Taiwan, Germany, and Sweden slowly shifting their base from China to India, the KASSIA demanded establishment of country exclusive zones for investors to boost confidence.
