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14/06/2018 04:10pm

FISME to hold meeting with CM Kumaraswamy to review MSME support in Karnataka

image FISME to hold meeting with CM Kumaraswamy to review MSME support in Karnataka

Bengaluru, June 14 (KNN) The Federation of Indian Micro and Small & Medium Enterprises (FISME), the apex body for MSME associations in the country, is facilitating a meeting between the industry bodies and the newly elected Chief Minister of Karnataka, HD Kumaraswamy.

Representing the MSME sector of the state, Mohan Suresh, a leading SME leader from the state and Past President of FISME, met Kumaraswamy requesting him to meet the industry representatives.

The Chief Minister accepted his request and assured to meet them at the end of June or the first week of July.

Talking to KNN India, Suresh said, “FISME is organizing a meeting between the Chief Minister and industry associations to discuss what the new coalition government will do for the MSME sector.”

He said the industry associations will also submit representations for the upcoming state budget in July.

One of the issues that will be taken up in the meeting, which Suresh highlighted, was the land allotment policy of the state government.

Suresh, who is also the Past President of FISME, said, “Within 10 years of allotment of the land, the construction work of the unit should be completed and after the completion of the project ownership of the land should be given to the unit holder.”

Last year, the state Cabinet had cleared an amendment to the Karnataka Industrial Areas Development Board (KIADB) rules on land allotment by withdrawing the 99-year lease clause for allotment to industries.

Prior to 2014, the State government had fixed a tenure of 10-year lease-cum-sale for land allotted for industrial activity. The tenure was fixed keeping in mind the severe shortage of land for industrial activity and also because the lands were getting diverted for purposes other than industries.

The government in 2014 had brought in an amendment and increased the lease period to 30 years, and subsequently to 99 years. 

The ownership of the industrial plot is crucial for the MSMEs as it provides a unit necessary security to avail funds from banks. The 99-year policy is unaffordable for the SMEs in view of the upfront payment of lease rent, which makes it uneconomical. (KNN Bureau)

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