BENGALURU: Karnataka Small Scale Industries Association (KASSIA) said the state government neglected the MSME sector by not providing any relief to it in the package announced on Wednesday. They demanded that the state government announce a relief package for the MSME sector to restore industrial production.
KASSIA president KB Arasappa said they were seriously concerned about the state of micro and small enterprises in the state and the government must step in by announcing relief packages.The packages announced by the CM for the agriculture sector is a welcome move, he said. The MSME sector, which is an extremely important segment of manufacturing which contributes sizeably to state GDP and generates employment for a large number of people, has been neglected by the government, he added.
The association said the requests to waive fixed charges in the power bill payments for three months, reduction of the tax imposed on petrol and diesel up to March 2022, working capital at four per cent to MSMEs and not to enhance water tariff and property tax up to March 2022 has not been considered by the government. KASSIA said that 20 per cent of the units had closed due to the previous lockdown and once again, the 14-day lockdown may force 20 to 30 per cent of units to close again.