BENGALURU: The state government has been ignoring Micro, Small and Medium Enterprises (MSME) sector for a long time, alleged K B Arasappa, president, Karnataka Small-Scale Industries Association (KASSIA), here on Tuesday. “The lockdown benefited 5 per cent of the sector as the demand for medical equipment rose. The Unlock period also saw a rise in export orders, but it is difficult to meet the demand because of poor infrastructure,” he added.
“Around 40 per cent of all exports are from MSMEs and the demand for aeronautical and defence equipment is rising. But there is no proper port in Mangaluru and roads in Karnataka are in a bad condition. This is helping Tamil Nadu gain economically as a large number goods is being exported from there. The demand for machine tools and agricultural products too is rising from Australia, Sri Lanka, Bangladesh and European countries,” he said.
The sector is also facing difficulties in paying electricity and other bills. “District administrations have started demanding occupancy certificates from MSMEs, while it is usually sought from big industries and commercial units. A government order makes it mandatory for public sector units to purchase 20 per cent of their requirements from MSMEs, but it is not being done.
The GST relief offered by the government is also not helping in reviving the sector as only 45 per cent of the manufacturing burden is cleared with this,” he said. KASSIA members said they have been making representations to the government, but with changing ministerial portfolios, nothing has been done.