Small industries search separate industrial areas in Karnataka

KASSIA President M. G. Rajagopal addressing a press convention in Mysuru on February 18, 2025.
| Picture Credit score: M A Sriram

Whereas demanding separate industrial areas for small and micro enterprises (SMEs) within the State, Karnataka Small Scale Industries Affiliation (KASSIA) has urged the federal government to deliver modification to the Land Reforms Act suitably for enabling Karnataka State Small Industries Improvement Company (KSSIDC) to amass land instantly. In any other case, the Karnataka Industrial Areas Improvement Board (KIADB) ought to allocate 30% of land it acquires to KSSIDC on the acquired value with out charging any improvement charges.

Addressing mediapersons in Mysuru on February 18, KASSIA President M. G. Rajagopal stated the price of industrial land for SMEs has develop into very costly. KIADB is transferring the land to KSSIDC on the allotment fee after buying the land and subsequently KSSIDC is unable to supply land to MSMEs at an reasonably priced value. “MSMEs are struggling as no land has been allotted to KSSIDC for the final 2-3 years.”

Highlighting the issues confronted by MSMEs and the troublesome occasions they’re present process, he stated about 6% of the industries in Karnataka are operated within the government-owned KSSIDC and KIADB areas whereas all of the remaining industries are operated in non-public industrial areas. The industries in non-public industrial areas are fully disadvantaged of the essential amenities required for the functioning of the industries. Within the curiosity of improvement of small industries, there’s an pressing want to supply primary amenities in non-public industrial areas, the KASSIA pleaded.

In accordance with KASSIA, KIADB allocates plots at provisional charges and after allotment, the land charges are elevated considerably regularly. To keep away from this case, the federal government issued a notification dated 05.09.2018, setting guidelines for rising the land charges of the plots. Nonetheless, the board has thought of the notification date because the closing date and has elevated the land charges of the commercial areas developed. The interpretation of the notification by KIADB is unreasonable, it argued.

KASSIA has subsequently urged the federal government to think about the notification for all of the KIADB industrial areas developed earlier than 2018. Because the ultimate value mounted by KIADB isn’t reasonably priced, a state of affairs has arisen the place SMEs don’t have any different possibility however to promote their plots and shift to rented locations, he claimed.

Additionally, KSSIDC revises land charges yearly based mostly on the rule charges mounted by the State Authorities. “Such unscientific revision of land charges has led to monetary misery for micro and small industries,” Mr Rajagopal claimed.

KASSIA has sought a separate labour coverage for the SMEs. “Small industries contribute lots to the state’s financial system. It’s the obligation of the federal government to guard such industries. Subsequently, it’s important to formulate a separate minimal wage coverage that focuses solely on micro and small enterprises (SMEs),” he stated.