Bangalore, Aug 14 (KKN) Karnataka's new industry policy has managed to earn praises from the Micro, Small and Medium Enterprises (MSMEs) in the state as the MSME units there termed the policy as bold and innovative.

While welcoming the policy, Karnataka Small Scale Industries Association (KASSIA) hopes that these policy measures coming on top of the recently affected reforms should help the state to achieve higher industrial performance ranking.

''It is indeed very noteworthy and commendable that the new policy reflects carefully thought out responses based on the various issues and pain points that were regularly being presented to the authorities by Industries,'' said KASSIA in a statement on Friday.

The industry body especially welcomes visible thrust on MSMEs and clusters in different parts of the state. 

''The reservation of 30 per cent land for MSMEs by Karnataka Industrial Areas Development Board (KIADB), enhancement of credit, industrial parks in private sector, waiver of electricity tax, loans at 6 per cent by KSFC, 10 per cent investments subsidy, labour related reforms and right emphasis on technology and exports laid in the policy will go a long way  in boosting investment activity if implemented well,'' the statement read further.

KASSIA also thanked the government for the proposal to set up Industrial Area Development Authority of Karnataka (IADAK) for the new industrial areas and to solve the multiple jurisdictional and property tax levy issues that were a pain.

''We believe these policy measures coupled with the reforms to the labour laws and the already cleared amendments to the land laws and industrial facilitation act will help promote investments in the state,'' it said.

The land reservation for MSMEs and the 10 per cent grant as investment subsidy should spur investments by MSEs as these are clearly investment friendly, though everything will depend on execution and has often set the proof of the pudding is in the eating.

''The government deserves to be complimented for bringing this out in the middle of the crisis posed by pandemic,'' KASSIA stated.