Karnataka SMEs disappointed with budget for small industry development
Updated: Feb 17, 2014 02:05:16pm
Bengaluru, Feb 17 (KNN) Although several issues pertaining to the small industry were presented to the state government for consideration in the budget for 2014-14, barely a few have been addressed according to Karnataka Small Industries Association (KASSIA).
“The Karnataka Small Industries Association has presented a comprehensive budget to the Government of Karnataka for improving the lot of the small industries from different angles. Although more than 20 specific issues were explained to the Government it is disappointing that hardly a few have been dealt with in the budget,” KASSIA said in a release.
According to KASSIA President, B P Shashidhar, there was no reference to the restoration of 0.5 per cent interim, VAT hike introduced as an emergency for just a year.
Further, the issue of abolition of trade license for SME, 20 per cent reservation in procurement, upgradation of infrastructure in industrial estate, procurement policy or often repeated interest support did not figure in the budget.
However, there are certain features in the budget which merit reference, it said.
These include provision of Rs 10 crore for upgradation of convention centre at Whitefield, Investment promotion programme to improve the investment climate through sector loan for infrastructure development and loan programme for industrial policy implementation, subsidy under Karnataka Khadi Board Scheme, establishment of training and manufacturing centres in Udupi and Sringeri.
Also, the budget has allowed for interest subsidy of 9 per cent to village industries, venture capital investment of Rs 10 crores to encourage potential entrepreneurs, 1000 residential work sheds to skilled workers, establishment of micro enterprises in the rural areas by investing capital up to Rs 10 lakhs through DICs (District Industry Centres), interest subsidy of 6 per cent to new generation entrepreneurs to an extent of Rs 75 crores through KSFC (Karnataka State Financial Corporation), and establishment of a couple of industrial townships etc.
Under the circumstances, Shashidhar feels the budget on the whole has mixed elements of satisfaction and disappointment. (KNN/ES)
“The Karnataka Small Industries Association has presented a comprehensive budget to the Government of Karnataka for improving the lot of the small industries from different angles. Although more than 20 specific issues were explained to the Government it is disappointing that hardly a few have been dealt with in the budget,” KASSIA said in a release.
According to KASSIA President, B P Shashidhar, there was no reference to the restoration of 0.5 per cent interim, VAT hike introduced as an emergency for just a year.
Further, the issue of abolition of trade license for SME, 20 per cent reservation in procurement, upgradation of infrastructure in industrial estate, procurement policy or often repeated interest support did not figure in the budget.
However, there are certain features in the budget which merit reference, it said.
These include provision of Rs 10 crore for upgradation of convention centre at Whitefield, Investment promotion programme to improve the investment climate through sector loan for infrastructure development and loan programme for industrial policy implementation, subsidy under Karnataka Khadi Board Scheme, establishment of training and manufacturing centres in Udupi and Sringeri.
Also, the budget has allowed for interest subsidy of 9 per cent to village industries, venture capital investment of Rs 10 crores to encourage potential entrepreneurs, 1000 residential work sheds to skilled workers, establishment of micro enterprises in the rural areas by investing capital up to Rs 10 lakhs through DICs (District Industry Centres), interest subsidy of 6 per cent to new generation entrepreneurs to an extent of Rs 75 crores through KSFC (Karnataka State Financial Corporation), and establishment of a couple of industrial townships etc.
Under the circumstances, Shashidhar feels the budget on the whole has mixed elements of satisfaction and disappointment. (KNN/ES)
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