SHIVAMOGGA: The future of Micro, small and medium scale industries in Karnataka is at stake and if the government does not permit them to function from June 1, about 30-40 per cent of MSMEs in the state will be on the verge of closure — this was the cencern expressed by many industrialists and Karnataka Small Scale Industries Association (KASSIA).
According to KASSIA, the first wave of Covid led to the closure of 15-20 per cent of MSMEs in Karnataka.
Now, it is worried that if the government fails to permit operations from June 1, it may lead to the closure of 30-40 per cent of these in the near future.
Speaking to TNIE, K B Arasappa, president of KASSIA asked: “When the government can allow large-scale industries to function, where about 500 to 1000 can work and there is high risk of Covid infection, why is it not permitting MSMEs, with SOP in place?” He said, “Usually, MSMEs have 10- 50 employees.
If we go by government directions, only 50 per cent of the staff will be operational. Hence, it will be easy to manage the group with SOPs,” he said.
“MSME employers depend on the revenue generated every month and it is a cyclic process of supplying to the customer and collecting the previous balance amount. Now, this cycle has been hampered as the customers are not releasing the previous balance amount, citing Covid crisis. Even they are under loss.
How do we settle the previous bills?,” he questioned. Ramesh Hegde, chairman of Machenahalli Industries Association (MIA) said, except for foundries, no other small and micro industries are functioning. The owners of these industries are worried about how to generate funds to pay salaries of their employees in June.