Provisions for small industries inadequate; KASSIA dissatisfied

Budget State Top story

KASSIA also complains about the lack of compensation to industries post floods.

By Harshith V.

Bengaluru, March 05, 2020

Even as the president of Federation of Karnataka Chambers of Commerce and Industry (FKKCI), C. R. Janardhana said that the budget was a gallant effort to meet the challenges posed by the fund crunch of Rs 11,215 crore, small scale industries are discontent with the budget allocations.

Small scale industries were expecting a boost in the budget as an offset for the increase in the prices of fuels. But the Central government has not provided funds for these industries this year.

C.R. Janardhana, President at FKCCI said, “There is an increase in petrol and diesel prices, though the prices of diesel and petrol have come down in the international market, still government wants to match the revenue shortage unless prices are increased it can’t be done. Without any source of income, development can’t be done.”

R. Raju, President of Karnataka Small Scale Industries Association (KASSIA) said, “We were expecting allocations from the government for small scale industries, but the government has only concentrated on tier-2 and tier-3.”

Dr Shivkumar, Industrialist and Former President, KASSIA said, “Government has not invested even Rs. 5 crore for industries. Since there is no allocation of funds it is a failure.”

KASSIA also complains about the lack of compensation to industries post floods.

Basvaraj Javli, Secretary, Small Scale Industries, Karnataka said, “There were 130 handloom industries only in Belgaum which submerged in floods last year. The government had promised compensation in the budget. The Chief Minister had also promised Rs. 25000 for each handloom industry.”

Umesh Belludi, the owner of Braintree Consultancy, said, “Micro Small and Medium Enterprises (MSMEs) is a growing sector. The government should have considered giving tax waivers or incentives to the industries to boost them. Their survival is very difficult without any help from the government.”


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