The MSMEs which can be struggling amid the Covid-19 pandemic want cheaper loans so as to survive, the Karnataka Small Scale Industries Affiliation (KASSIA) has sought.
On Monday, KASSIA President R Raju despatched a letter to Chief Minister B S Yediyurappa, in search of decrease rates of interest on loans.
The letter identified that about 25-30% of the small and medium sector enterprises risked shutting store completely despite the state authorities enjoyable labour legal guidelines and giving a waiver on fastened electrical energy fees.
“They are badly in need of cheaper loans from financial institutions. The 4% loan facility offered by the Karnataka State Financial Corporation (KSFC), which is now inaccessible for want of funds, needs immediate revival,” the affiliation said.
The affiliation has additionally urged the CM to make authorities tender course of pleasant to MSMEs by holding departments accountable for reservations to MSMEs. In its current kind, the MSMEs are ignored of huge tenders as they can’t afford the prerequisite Earnest Cash Deposit (EMD), the affiliation has mentioned.
Withdrawal of the ‘Karasamadhana Scheme’, which was meant for aiding MSMEs with a one-time settlement of excellent taxes, with out curiosity of penalty, had additionally come as an enormous blow. This must be revived, the affiliation president added.