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Karnataka government on Monday assured that it will continue to support the development of small sector industries in the state. State deputy chief minister B S Yediyurappa, speaking at an interaction with SSIs organised by Karnataka Small Scale Industries Association (KASSIA), said: Our government is pretty much aware that SSIs in the state need support. When we came to power there was a pending subsidy amount of Rs 300 crore which was to be released. Within a month of coming to power, we have released Rs 85 crore of that amount and we will continue to release further amount. He added that the present government is more inclined to the development of this sector and they are actively working on giving the final touches to the new policy for SSIs. The current policy expires by end of this month, and the new policy will give adequate push for SSIs to take on competition effectively, he noted. The new policy will be effective till 2011 and is expected to boost setting up of dedicated industrial clusters. Yediyurappa said: The forthcoming budget will consider most of the grievances SSIs face in the state and will try to address them. His government will strive to develop other cities in the state as growth centres for development of small sector industries. KASSIA on its part also urged the state government to earmark Rs 100 crore revolving fund for infrastructure maintenance to consolidate the maintenance work in government industrial estates and private industrial clusters. Said Hareesh P Hegde, president, KASSIA: The government should also speed up the process of the establishment of the Industry Township Authority. In the context of a delay, an option that can be explored is to create public private partnership project by creating an SPV.
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Later, speaking to reporters, Yediyurappa said that governments from all the states are meeting to put forth a request to the Centre urging to reduce the interest rate to farmers. Farmers across India face almost similar problems. The interest rates of loan has been brought down to 7 per cent from the earlier 11 per cent. We are urging the Centre to bring it down further to 6 per cent to all farmers, he stated.
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