Even though the Karnataka Small Scale Industries Association (KASSIA) has welcomed the Union government’s overall measures to address the economic slowdown, it expressed its discontentment over inadequacies in the government policies to help out the micro, small & medium enterprises (MSMEs) that are at the receiving end of the recession.
Addressing a media conference here on Thursday, R. Raju, president of KASSIA, put forward a host of demands for Union government’s consideration to address the specific issues faced by the MSME sector.
“MSME sector is one of the major contributors to the State’s exchequer through taxes, and it generates a lot of job opportunities. Yet, it is not receiving adequate assistance from the government. The State government is offering credit to MSMEs at an interest of 4% through its Karnataka State Finance Corporation. We urge the Union government to come up with a similar initiative to advance money at 4% interest through the nationalised banks,” Mr. Raju said.
Pointing to the “serious problems” created by the Goods and Services Tax regime for small and medium enterprises (SMEs), Mr. Raju said the introduction of GST had upset the tax-filing and compliance process for SMEs.
“The rigidity in the [GST] system has added more to the problems [of SMEs]. It is, therefore, necessary that these are addressed with a view to ease the SME operations in these difficult days. There are many areas such as GST on job works, labour charges and delay in refunds that need to be sorted out at the earliest,” he said.
Amarnath C. Patil, president of Hyderabad Karnataka Chamber of Commerce and Industry (HKCCI) criticised the successive governments’ approach towards the backward Kalyana Karnataka region in the establishment of industries.
“The Union government had sanctioned National Investment and Manufacturing Zone and over 12,500 acres of lands were identified in Chittapur taluk for the purpose. It was, however, put in the cold storage. If the project is implemented, it would generate over 2.6 lakh jobs and boost the economic development of the region. But, no government is serious about it,” he said.
He also demanded the Union government to extend special financial aid to Kalyana Karnataka region that enjoys Special Status under Article 371(J) of the Constitution, just as it did with other States that also enjoyed the Special Status under different Clauses of Article 371 of the Constitution.
KASSIA office bearers K.B. Arasappa, M.G. Rajgopal, Vishwanath Goudar, K.N. Narasimha Murthy and Bhimashankar Patil were present.
