K'taka Govt issues stringent laws on land allotment to MSMEs; Industry sees it as an encouraging move

New Delhi, July 15 (KNN) The Karnataka Government introduced new set of rules on land allotted by the Karnataka Industrial Areas Development Board (KAIDB) and Karnataka State Small Industries Development Corporal (KSSIDC) to the Micro, Small and Medium Enterprises (MSMEs), the move is being seen as a good step in the interest of the sector.

Talking to KNN, Praveen B, Immediate Past Secretary of the Karnataka Small Scale Industries Association (KASSIA) explained about the latest development.

He said that earlier the land was given on a 99 year lease and big chunk of lands was offered. For a MSME unit it is not possible to go for larger plots, also since the MSME could become owner after such a long lease time, even the banks hesitated in extending the loans.

But with the new notification, the MSMEs are able to seek land with enthusiasm. Also banks are now coming forward to provide financial assistance as the lease cum sale period of 10 years is introduced.

Praveen further said that the notification is a result of the initiative of KASSIA along with other associations. KASSIA earlier submitted a memorandum to the Chief Minister of the state highlighting the problems with the system of land allotment.

The new norms are certainly a big relief, especially for the Micro and Tiny sector of enterprises, he added

Industrial sector in Karnataka comprises of more than 5 lakh MSME units equating to 70 per cent of the total industries in the region. (KNN/ DA)