BENGALURU: A separate ministry for small- scale industries will be formed in Karnataka, in line with Chief Minister Siddaramaiah’s directive, Deputy Chief Minister DK Shivakumar said in Bengaluru on Saturday.
Shivakumar was speaking after inaugurating the Centre of Excellence and Innovation and an Exhibition Centre established by the Karnataka Small Scale Industries Association (KASSIA), which is celebrating its 75th year. This centre will offer training, research and affordable exhibition space to promote innovation, productivity and rural youth skill development.
Comparing Karnataka with other states, the DyCM said, “Many states offer attractive policies for small-scale industries, but they lack quality talent. In Karnataka, we are planning to start a new training centre dedicated to small industries. I am here today to assure you that the government fully supports this organisation and its vision.”
Reflecting on his understanding of the sector, he said, “I have closely observed the challenges small-scale industries face in creating employment. Banks continue to favour large corporations, even though the Centre has announced collateral-free loans for MSMEs. KASSIA must mount more pressure on the government to ensure action.”
Speaking to the media on the sidelines, Shivakumar said, “There is a rule that 20% of grants from KIADB should be reserved for small industries. I will raise this issue with Industries Minister MB Patil and bring it up in the next Cabinet meeting. We need to shift our focus more towards supporting small-scale industries.”
On the difficulties in promoting small scale industry products, President of KASSIA MG Rajagopal said, “Since it is difficult for us to exhibit our product due to the high fees charged by other exhibition centres, we have constructed this centre to enable exhibition of the products from MSMEs.”
No immediate decision on minimum wage hike: DyCM
Deputy Chief Minister DK Shivakumar assured small-scale industrialists that no immediate decision will be taken on the proposed minimum wage hike. “I have advised the Labour Minister not to act hastily on the wage hike. No decision will be taken without the consent of the Chief Minister and myself,” he said.
His assurance comes in response to concerns raised by small scale industries that Karnataka could become the costliest state for labour, forcing units to move to states like Tamil Nadu or Telangana, where wages are lower.
“You have raised important issues about human resources in the sector. I’ve already discussed this with the CM and directed the Labour Minister accordingly. You need to meet ministers personally and explain your problems - some still believe only IT/BT constitutes industry,” Shivakumar said.