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Udupi : Udupi district around 15280 micro, small and medium industries, generating employment to 1,17,085 people. The district has units manufacturing varied products numbering to 17. There are four industrial areas established by KISSIDC.

Speaking to media persons during the press meet at Ocean Pearle Hotel here on Saturday, August 29, President of Karnataka State Small Scale Industries Association(KASSIA), K. B. Arasappa, he said that we are here at rather difficult times created by the pandemic, Industries have been a negatively impacted by the spread of corona virus with disruptions of supply chains, demand as well as credit. Though the lockdown has been lifted, industries probably will take a long time to recover.

He said, unfortunately, about 20% of the micro and small enterprises may not able to revive at all as a result of the shocks.

KASSIA has been in continuous touch with the governments at centre and the state representing on the ground situation with a view to obtain relief to industries. We are satisfied the governments have indeed responded positively to the demands of the industry.

The central government has pumped in liquidity into the system to enable industries to borrow from banks and financial institutions to revive operations under ECLCs with the state government supporting industry in various ways through moratoriums on payments, waiver of certain payments such as fixed electricity charges and also easing compliance requirements. However, the steps taken are felt inadequate and KASSIA has requested the government to initiate more measures in order to ensure that MSMEs get back on feet.

The other day, I had the privilege of speaking to the Hon’able Union Finance minister on telephone and used the opportunity to convey the actual state of the micro and small enterprises in the state seeking government intervention in order to save them. As far as the centre is concerned, we have urged them to consider the some issue urgently in the immediate future with a view to reviving industry, especially the small enterprises. Steps to revive demand in the face of complete disruption in consumption and investment in the economy. Measures to remove supply chain disruptions that make it difficult for industries to renew the production process and/or reduce inventory. Need for extension of moratoriums for the benefit of industry. Need for extension of moratoriums for the benefit of industry, need to address pain points with regard to GST and ensuring schemes are really implemented at the level of banks without complications or red tape.

He said, in our opinion th some measures are absolutely essential to ensure industrial activity regains normalcy especially in the most critical segment which is the small industries.

Government must step up investments on infrastructure which will help generate employment and raise demand for SME products and services, Central and state governments must step up expenditure on public works. In light of our experience of the pandemic, investments in critical health infrastructure and urban housing and slum development will help create considerable employment and demand for products and services. The government must inject cash into micro and small enterprises by means of direct pay roll support to such enterprises till the end of the financial year. The interest rate on bank loans needs to be reduced to 6% for a period for MSMEs. In the lines of the PF payments being made by the government, the centre may consider payment of ESI contributions of the SMEs so that this takes out the stress on cash outgo from those enterprises. Government must also involve the co-operative banking institutions in extending the ECLGS loans to enterprises as it helps the rural industries and also widens the distribution network.

Export who have suffered due to the pandemic need relaxation in terms of NPA norms to enable them to get necessary credit to fulfill commitments. The government must consider SMA-2 units to access loans undr the ECLGS scheme in view of the continuing pandemic. Consider payment of rent and utility bills of micro and small enterprises through direct cash transfers. Moratoriums on repayment of loans need to be extended till the financial year end. Banks must relax repayments further with grace periods. Not declare accounts NPA under the present norms. Ease regulatory compliances and further improve ease of doing business.

Coming back to the issues that concern the coastal district of Udupi, apart from the day to day problems of running industry and the other issues posed by the Covid crisis, there are other demands whch need to be met in rder to continue on the path of progress.

Some of the issues that requires the government’s attention will be investment in large industries. There is a felt need for the large industry f a size which will have the potential to spin off demand for the creation of small and micro supply units spread over the district which can really help in creating employment and incomes for the people. This could be in any relevant areas such as automobiles, electrical  machineries or petro chemicals which can also be export oriented keeping in view the access to the NMPT. The government must plan for on or two such large projects.

There is need for I industrial park/s which must be comp0letley self contained in terms of infrastructure including housing for workers and other infrastructure needs such as power, ETP, water supply and other related infra. This can be created either by KIADB or on PPP mode involving private entrepreneurs and the government.

Talking into account the vast coast and also the hinterland for supply of agri food products, the strengths of the distritts can be utilized to set up a sea food processing industry and also other food processing industries of medium/large size which will be raw material based. This will help the district attain higher industrial rank besides creating jobs for the youth.

The government needs to set up testing laboratories at Udupi/Manipal for the benefit of local industries as the laws are absolutely essential for ensuring quality of products to meet standards of supply including exports.

Government can also think of setting up a technical training institute on the lines of GTTC in Bangaluru. This can also be considered on the lines of PPP which will help industries access required skills and this can also serve the needs of the surrounding regions.

We would like to request the government to kindly consider the mentioned suggestions favourably.

KASSIA officials Sushanth Baliga, I R Fernandez, N R Jagadish, P M Jiakumar and others were present during the press meet.