New Industrial Policy good for MSMEs, but only if implemented effectively: KASSIA
Updated: Sep 13, 2014 11:50:56am
Bengaluru, Sept 13 (KNN) Karnataka’s new industrial policy is good for the micro, small and medium enterprises but only if implemented effectively, said industry body KASSIA.
The Karnataka State Cabinet in a meeting on Thursday approved the draft of the new industrial policy for the period 2014-19 which is expected to generate 15 lakh additional jobs and attract investments up to Rs 5 lakh crore in the next five years.
“The new industrial policy for 2014-19 approved by the Karnataka Cabinet contains lot of salutary measures to realize its target of increasing the manufacturing sector’s contribution to the state GDP to 20 per cent. However the targeted goals of mopping up investments of Rs 5 lakh crore and creating 1.5 million jobs can be achieved only after understanding the hits and misses of the previous industrial policy for 2009-14,” said KASSIA (Karnataka Small Scale Industry Association) reacting to the new policy on behalf of the state’s micro and small scale industrial sector.
Lauding the Chief Minister Siddaramaiah for his initiative to drive manufacturing and spur growth, KASSIA President, Chidananda M Rajamane said, “The new policy contains a number of commendable measures such as abolishing of trade license on MSMEs, proposal to set up 1,000 micro enterprises in rural areas with a capital investment of Rs 10 lakh through DICs, creating two additional industrial zones thus bringing the overall number in the state to six.”
He also appreciated the measures that ensure VAT reimbursement in the form of interest-free loans spread over 7-14 years, introducing deemed land conversion, increasing the number of items to be purchased from micro and small scale industries to 358, doubling the subsidy to 100 per cent, and creating two exclusive women entrepreneur zones in Hubli-Dharwad and Harohalli.
However, KASSIA struck a note of caution on avoiding a mismatch between policy imperatives and actual implementation.
“The earlier industrial policy 2009-14 had promised reservation of 20 per cent of land for MSMEs in new industrial areas by the Karnataka Industrial Areas Development Board (KIADB), and 15 per cent price preference for MSME items procured by the state government and state PSUs, but most of these only remained on paper,” Rajamane pointed out.
“In view of the above, the government has to first draw the right lessons from the failures of previous governments to implement their policies if the new policy has to succeed in reaching its targets,” he added. (KNN/ES)
The Karnataka State Cabinet in a meeting on Thursday approved the draft of the new industrial policy for the period 2014-19 which is expected to generate 15 lakh additional jobs and attract investments up to Rs 5 lakh crore in the next five years.
“The new industrial policy for 2014-19 approved by the Karnataka Cabinet contains lot of salutary measures to realize its target of increasing the manufacturing sector’s contribution to the state GDP to 20 per cent. However the targeted goals of mopping up investments of Rs 5 lakh crore and creating 1.5 million jobs can be achieved only after understanding the hits and misses of the previous industrial policy for 2009-14,” said KASSIA (Karnataka Small Scale Industry Association) reacting to the new policy on behalf of the state’s micro and small scale industrial sector.
Lauding the Chief Minister Siddaramaiah for his initiative to drive manufacturing and spur growth, KASSIA President, Chidananda M Rajamane said, “The new policy contains a number of commendable measures such as abolishing of trade license on MSMEs, proposal to set up 1,000 micro enterprises in rural areas with a capital investment of Rs 10 lakh through DICs, creating two additional industrial zones thus bringing the overall number in the state to six.”
He also appreciated the measures that ensure VAT reimbursement in the form of interest-free loans spread over 7-14 years, introducing deemed land conversion, increasing the number of items to be purchased from micro and small scale industries to 358, doubling the subsidy to 100 per cent, and creating two exclusive women entrepreneur zones in Hubli-Dharwad and Harohalli.
However, KASSIA struck a note of caution on avoiding a mismatch between policy imperatives and actual implementation.
“The earlier industrial policy 2009-14 had promised reservation of 20 per cent of land for MSMEs in new industrial areas by the Karnataka Industrial Areas Development Board (KIADB), and 15 per cent price preference for MSME items procured by the state government and state PSUs, but most of these only remained on paper,” Rajamane pointed out.
“In view of the above, the government has to first draw the right lessons from the failures of previous governments to implement their policies if the new policy has to succeed in reaching its targets,” he added. (KNN/ES)
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