The Hindu : Karnataka News : Plight of SSIs brought to Naik’s notice

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Friday, Jul 27, 2007
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Karnataka

Karnataka

Plight of SSIs brought to Naik’s notice

Staff Reporter

BANGALORE: “Our products are popular overseas and have brought name to the country. However, we feel ashamed to invite our overseas customers to our industrial premises because of the poor condition of roads and other infrastructure,” a small scale industrial entrepreneur told Minister for Small Scale Industries Shivanand Naik here on Thursday.

He said that almost 90 per cent of small scale industrial (SSI) units are located in private industrial estates. Lack of water, absence of good roads, unhygienic surroundings and such other problems haunt these units, he said.

He was speaking at an interaction meeting with the Minister organised by the Karnataka Small Scale Industries Association. Though local authorities collect various taxes and duties, they never address civic issues in SSI areas, he said.

KASSIA president M.C.R. Shetty presented a memorandum of eight demands to the Minister. He said industrial plots developed by the Karnataka Industrial Area Development Board are hardly given to SSIs, thus forcing the entrepreneurs to opt for private estates. Lack of infrastructure has been haunting the units, he said. The other demands included one-time settlement scheme for dues towards Karnataka State Small Scale Industrial Development Corporation, new organisation for marketing assistance and KASSIA representatives on the boards of KSFC, KIADB and KSPCB.

Multiple taxation

SSIs, which have been struggling for existence, are forced to pay multiple duties to local bodies. One such duty is towards trade license, where in Bangalore the units are required to pay towards Suvarna Arogya Yojane (Golden Jubilee Health Scheme).

Further, SSIs are categorised as commercial establishments and are required to pay hefty property tax. The association said it was ridiculous to compare a small business establishment in the central business district with lakhs of rupees turnover in a day and an SSI in an industrial area.

It also expressed anguish over 0.5 per cent stamp duty payable to the Government on turnover loan being obtained by industrial units.

The former president of the association Jayalingappa urged the Minister to visit Gujarat to learn how SSIs are treated in that State. SSIs in Gujarat have been performing extremely well.

Another member told the Minister that the single window committee in the districts under Deputy Commissioner’s chairmanship has become a single window with multiple doors. All decisions taken by the committee are to be sent to Bangalore for KIADB ratification which takes months together, he regretted.

Meeting

Responding to their demands, Mr. Naik said he would convene a meeting of representatives of the association and senior officials of various departments and agencies on August 8.

He would lead a delegation of SSI entrepreneurs and officials to Gujarat to study the SSI model in that State in August first week, he said.

Association vice-president Arvind N. Burji, general secretary A. Vijayendranath, joint secretary K. Jayaraj Pai, treasurer V.K. Dikshit and representatives from district associations were present.

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