KSSIDC may step in to save MSMEs hit by steel price hike in Karnataka

Bangalore, Jan 5 (KNN) Amid the unprecedented hike in the price of steel, Karnataka State Small Industries Development Corporation (KSSIDC) has assured to resolve steel crisis faced by Micro, Small and Medium Enterprises (MSMEs).

''The unprecedented hike in the price of steel and the real or artificially created scarcity of the raw material has severely hurt many micro and small scale industries dependent on it, and as a consequence, they are even facing the threat of closure if the situation, coming on top of the covid-19 crisis, continues,'' said Karnataka Small Scale Industries Association (KASSIA) on Tuesday.

''To find a solution to this crisis, KASSIA held an interaction meet with Dr V Ram Prasath Manohar, IAS, MD, KSSIDC who has newly taken charge, with the affected industries and he promised to procure steel directly from the steel producing companies such as JSW and supply it to the MSMEs at the same rate,'' it added.

The industry association further mentioned that Manohar asked them to collect the requirement of steel in terms of quantity and specification from the MSMEs and submit it to KSSIDC so as to avoid demand-supply mismatch and also to extract a better price from the steel producing companies.

Regarding supply side constraints, he said godowns for storing the steel procured will be set up at district level by the KSSIDC and further, three godowns will be established in Peenya to enable easy lifting of the raw material by the MSMEs which are present in large numbers in Peenya Industrial Area.

The KSSIDC MD also made a half-day inspection of Peenya Industrial Estate on January 4 and assured to take up infrastructure improvement works in the estate, not only in Peenya but also in other industrial estates developed by the KSSIDC.

Responding to the pleas of the entrepreneurs, he promised to resolve many of their long-pending demands which had been unattended for many years, such as issue of sale deeds and infrastructure works not taken up till now,'' KASSIA added.

Later, on behalf of all the affected MSMEs, KASSIA President, K B Arasappa expressed his deep appreciation of the new KSSIDC MD’s proactive approach which would give a big relief to thousands of MSMEs across the state.