Like the farm sector, MSMEs should get soft loans, say trade bodies on the Karnataka budget.

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File photo of a food park in Tamakuru.  Karnataka has more than 6.5 lakh industries, mostly comprising MSMEs.
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File photo of a food park in Tamakuru. Karnataka has more than 6.5 lakh industries, mostly comprising MSMEs.

The Karnataka Budget 2023-24 is a mixed bag and one of the missed opportunities for micro and small scale industries as it is an election budget, said Karnataka Small Scale Industries Association (KASIA) president KN Narasimha Murthy. .

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Expressing its disappointment, the trade body observed that the budget came months before the Assembly elections but did not offer soft loans to MSMEs as it did to the farm sector, which is in the wake of the pandemic. is a very deserving class. No specific amount was earmarked for providing infrastructure in private industrial estates, which is one of the serious problems affecting the majority of MSEs in Karnataka.

“More than 90% of entrepreneurs operate in private industrial estates where they lack even basic infrastructure, which the budget should have acknowledged and done justice to. Also, the budget has revised electricity rates for MSEs. An assurance of non-increase in, and reduction in, the consent fee charged by the Pollution Control Board for a specified period, till they come out of the impact of the Covid pandemic, could have been included. Mr Murthy added.

Kasia questioned the validity of the proposal to set up world-class plug-and-play industrial parks around Bengaluru when there is no land available for it. The proposal to set up new industrial clusters in nine districts was not new but a fulfillment of previous promises made by the government.

The decision to set up mega and mini textile parks at 25 locations in Karnataka will create employment opportunities at the district level, paving the way for inclusive growth, as suggested by KASSIA in its pre-budget memorandum.

Bangalore Chamber of Industry and Commerce President, L Ravindran said, “The budget was comprehensive and addressed key priority areas by promoting industry, energy transmission, welfare of unorganized workers, skill development and entrepreneurship training. ” “More allocation to Bengaluru to increase road infrastructure and metro connectivity to decongest the city is a welcome move.”

Sanjeev Gupta, CEO, Karnataka Digital Economy Mission, said that there is definite expression of interest to invite private organizations to build integrated townships in Mysore, Chakbalapur, Chitradurga, Haveri, Kolar and Ramannagaram under public-private partnership model. It will help in the development of the state. startup ecosystem outside of Bengaluru, and help Karnataka achieve the national $1 trillion digital economy target by 2025.

“We welcome the announcements made by the government for the startup ecosystem in the state, including the proposal to set up a state-of-the-art startup park near Kempegowda International Airport at a cost of Rs 30 crore. at nine places, and construction of airports at Davangere and Koppal,” he said.

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