Mysore/Mysuru: Karnataka Small Scale Industries Association (KASSIA) President K.B. Arasappa has said that around 20 per cent of Small and Medium Enterprises (SMEs) have stopped production due to Corona crisis.

Talking to reporters here yesterday, he said the lockdown, imposed by the Government of India to check the spreading of pandemic, affected the supply of raw materials, repayment of loan to banks and supply. Even after lifting the lockdown, industries have not recovered yet. Migrant workers who had left Karnataka due to the fear of COVID-19 during March-April have not returned. This has affected the functioning of industries. Lack of basic amenities was also one of the reasons for the slowdown of industrial activities, he added.

Arasappa said around 20 per cent of SMEs have not been able to re-open even after Unlock 4.0. Need of the hour was to simplify guidelines in regard to setting up of new industries. The affected industrialists should be suitably compensated as part of its revival scheme, he said.

New programmes

 He said KASSIA has embarked on a number of programmes keeping in view the need to support Micro, Small and Medium Enterprises (MSMEs) in the wake of COVID-19 pandemic during the year. A mega International Trade Fair will be held at Dabaspet in May 2021.

 It has plans to establish partnerships with similar organisations by means of Memorandum of Understandings — one each in Europe, South East Asia, Middle East and Africa to begin with. This will be with a view to expanding trade and investments, technology transfers, joint venture and collateral activities, involving members. Trade delegations will be sent to other countries to promote business and trade among members and important regions/ countries globally.

He said interactive meetings are planned with various District Associations based on local issues to promote investments and commerce in partnership with District Industries Centres (DICs) and others with detailed planning. 

Meetings, involving KSSIDC/KIADB in districts, will be arranged to resolve pending matters and redress problems of title and land transfers and other issues. 

Events on GST, labour laws, procurement, finance, GEM portal, power supply, skill development, are among others. Focused programmes on the need to encourage startups as part of enterprise development programme, will also be held in various districts of the State.

Demands

•Government of India must extend moratoriums on repayment of loans till the end of current financial year

• Banks must relax payments further with grace periods

• Not to declare accounts as NPA under the present norms

• Exporters who have suffered due to the pandemic need relaxation in terms of NPA norms to enable them to get necessary credit to fulfil commitments

•The Government must consider SMA-2 units to access loans under the ECLGS scheme in view of the continuing pandemic

• Consider reduction in GST rates and also ease compliances of returns filing

• Consider payment of rent and utility bills of Micro and Small Enterprises (MSEs) through direct cash injection for a period

• Need to address pain points with regard to GST  

Mysuru industries hit by COVID-19 

The industries in Mysuru also have been affected by the Corona crisis badly, said KASSIA President Arasappa. Some of the problems in Mysuru include issues of infrastructure deficiency in industrial estates, connectivity as the issue of property tax levied by local authorities in whose jurisdiction some of the industrial areas/estates may fall. These and other related problems will be discussed in the interaction along with other common issues faced by MSMEs in the State and the country, he said.

 “Mysuru is very important as an industrial centre for the State and has important industry clusters such as Printing, Engineering and Auto components apart from traditional industries such as Handicrafts, Textiles etc. There are over 39,795 Micro and Small Industries and around 53 Medium, 45 Large and 5 Mega Industries operating, employing over 2,61,000 people of which MSMEs employ nearly 2.33 lakh. There are 8 industrial areas and 6 industrial estates in the district, which is growing fast industrially.