SMEs want status quo on land lease period

The Karnataka Small Scale Industries Association (KASSIA) has described the new policy of the State government on the allotment of land to industries only on lease of 99 years as against the earlier policy of 10 year lease-cum-sale as a big shock to small and medium enterprises (SMEs).

The association said the move deprives the enterprises of the right to own the property. “The move strikes at the root of the enterprise and carries the danger of discouraging new investments in the SMEs as ownership enables entrepreneurs to face risks a little more confidently and is critical to SMEs as compared to mere leasehold,” observed KASSIA president V.K. Dikshit.

Pleading the government to maintain

status quo on the new move, the association urged the Chief Minister to allot land up to two acres under the 10 year lease-cum-sale option.

The association also urged the Chief Minister to withdraw its directions on the minimum wages arguing that the industry should have the capacity (in terms of operations) to pay otherwise it will be counter-productive.

The government had enhanced the minimum wages for nine categories of industries and it had been notified in the gazette. Draft notification had been kept ready for 23 other categories of industries, which it observed as detrimental to the existence of micro and small industries, the memorandum said.

The minimum wages fixed by the government in the State is higher than the neighbouring States.

Say the move deprives the enterprises of the right to own the property