BENGALURU: The Karnataka Small Scale Industries Association (KASSIA) has urged the state government to immediately release Rs 2,880.18 crore in pending capital subsidies and incentives covering 3,716 industrial units across Karnataka.
KASSIA President Ninganna S Biradar submitted a memorandum highlighting the concerns of Micro, Small and Medium Enterprises (MSMEs) to Small Scale Industries and Public Enterprises Minister Vijayanand Kashappanavar during a state-level consultative meeting held at Vikasa Soudha in Bengaluru on Monday.
According to KASSIA, subsidies sanctioned to industrial units have remained pending for several years, with delays extending up to four or five years in some cases.
The association said the delays have placed financial pressure on MSMEs and affected production, employment, investment and working capital. It sought a special time-bound drive to clear all eligible claims and a dedicated fast-track mechanism for processing and releasing incentives.
The memorandum also highlighted delays in issuing e-Swathu and e-Khata, particularly in rural and gram panchayat areas. KASSIA raised concerns over industries having to pay maintenance charges to KIADB or KSSIDC while also paying property tax to local authorities.