Bengaluru, May 27 (KNN) Karnataka Small Scale Industries Association (KASSIA) led a delegation to the state Chief Minister BS Yediyurappa and asked him to allow Micro, Small and Medium Enterprises (MSMEs) to operate amid COVID induced lockdown.

KASSIA president, KB Arasappa also urged the Chief Minister to help the ailing MSMEs in the state and appealed to the government to not disconnect or shut down MSME units for non-payment of power bills.

It further sought to extend time for payment of previous bills up to July, and also provide a separate quota for industries using oxygen cylinders especially sheet metal, fabrication and automobile sector as they are crippled by supply-side shortages.

''The ban on industrial operations that has been in force since the last week of April due to the lockdown, has disrupted supply chains and has severely affected industries,'' the industry body said in its appeal to the government on Tuesday.

KASSIA also apprised the government that about half of the industries may permanently shut down because of accumulating business losses which will lead to large scale job losses and loss to the state’s exchequer.

“The government should prevent further exodus of labourers from Bengaluru and other districts to their native. Any delay in the decision could benefit MSMEs in other states at the cost of Karnataka’s industries,” KASSIA said.

Reportedly, KASSIA, in a representation to the Prime Minister and Union Finance Minister, urged to consider extending the relief package for MSMEs like it was done last year, more so since the second wave was a bigger calamity than the first wave.

''It demanded waiver of interest on term loans, working capital, etc. for the months April to July and further, defer loan repayments for the next 6 months,'' media reports quoted KASSIA as saying.

KASSIA asked the government to offer soft loans to MSME borrowers at 6 per cent on all types of loans for the next two years since they are under direct threat of extinction which will have a negative impact on the economy of the country as well as the social fabric of society.

“Provide wage support for three months - May to July - for employees of MSMEs up to a ceiling of Rs 15,000 per month and pay the contribution of employees and employers towards ESI and PF for the same period,’’ the representation stated.