New Delhi, July 14 (KNN) Aiming at bringing the attention of the government officials towards different issues that continue to haunt the growth of the Micro, Small and Medium Enterprises (MSMEs) in the region, the Karnataka Small Scale Industries Association (KASSIA) recently held a press meet.

During the meet, the newly elected President of KASSIA, R. Hanumanthe Gowda raised several concerns that need to be addressed to ensure the productivity of the sector.

Explaining the situation Gowda said that the Price and Purchase Preference policy that was introduced for the benefit of the small scale industries, there haven’t been proper implementation of the scheme in the State. Under the policy, the small scale units that are registered with the NSIC are to be exempted from tender fee, EMD and payment of security. Also the SSI units are to be given preference up to 15 per cent over the lowest quote of a large scale unit. Despite the scheme in place, the small scale units are yet to benefit.

Highlighting another major concern he said that the SMEs are not made payments. Though the rule of law says that the payment must be made within 45 days of procurement, and an interest would be charged otherwise, he informed that not only is the payment being delayed, the procurers also refuse paying the interest that gets due.

The Industry body also urged the government to ease the norms related to NPA. It said that 90 days is too soon to declare a firm as an NPA, this needs to be extended to 180 days.

Grieving about the inspector rah that exists in case one wants to obtain the trade license, Gowda said that at every level the trader is harassed, this totally nullifies the ease of doing business vision in the state.

Commenting upon the Goods and Services Tax (GST), he appealed for more awareness programs to be conducted in the different regions of the state targeting the MSME sector as it is very difficult for the MSMEs to understand the norms of the new taxation policy.

Though Gowda did acknowledge the State government’s contribution in the growth of the MSME sector, he said that the mentioned concerns too need to be looked upon with urgency. (KNN/ DA)