KCCI Submits ‘Inputs for State Level Industrial Policy’ to Minister Jagadish Shettar

KCCI Submits ‘Inputs for State Level Industrial Policy’ to Minister Jagadish Shettar

KCCI Submits ‘Inputs for State Level Industrial Policy’ to Minister Jagadish Shettar- Honourable Minister of Large and Medium Scale Industries, Karnataka State

Mangaluru: Following is the letter submitted to Jagadish Shettar Honourable Minister of Large and Medium Scale Industries,.by Kanara Chamber of Commerce and Industry (KCCI) , Mangaluru

Respected Sir,

Sub: Inputs for State level Industrial Policy.

We the Kanara Chamber of Commerce and Industry, along with our Affiliated Associations – Kanara Small Industries Association and District Small Industries Association welcome you to Mangaluru. After in depth discussions and deliberations, our members would like to present the following inputs for changes that are needed in Industrial policy of Karnataka. We feel these changes are essential for making “ease of doing business” a reality.

1. Increase of Maximum Sanction Load for LT from 66 HP to 150 HP: The Maximum power sanction load for LT is capped at a mere 66 HP in Karnataka State; this is hindering the industrial development. Earlier the Government Policy allowed 100 HP as maximum permitted LT Load which was brought down to 66 HP to the detriment of MSME’s. States like Maharashtra, Delhi and Tamil Nadu have a maximum permissible load of 150 HP for LT. This one decision would be a game changer for development and growth of Industries in our state.

2. Additional powers and enforcement mechanism for District Industries Centre and District level Single Window Clearance Committee: There are several issues at the District Level that could be solved if certain additional powers are provided to the District Industries Centre (DIC) and District Level Single Window Clearance Committee. This will ensure speedy redressal of District level issues and will be great help to all stakeholders.

3. Minimum wages for fresh Recruits: Micro and Small Industries are employment creators and fresh candidates get trained and skilled in these Industries. During training Industries suffer material loss, tools damage and machinery damage. To offer the present minimum wage and train the fresh candidates is unviable, this affects new job creations.

We demand a separate Minimum wage for micro and small Industries as most of the candidates we train hardly work for us for six months and migrate to big Industries in search of better prospects. If government due to political compulsion cannot implement this, it should contribute 50% of minimum wage by DBT to employees account. In no case, the MSME’s must be made to pay minimum wages to new/fresh recruits as this will severely discourage employment creation.

4. Applicability of Factories Act to be enhanced from present 10 workers to 20 as amended by the Central Government.

5. Allow bore wells at KIADB and KSSIDC industrial land’s and make rain water harvesting in Industrial Areas compulsory: Water is a scarce resource and therefore we request the Government to make rain water harvesting mandatory in KIADB industrial land and also allow bore wells to ensure adequate water for industries.

6. Investment Subsidy Ceiling: The present ceiling of Rs. 75 lakhs of Industrial Subsidy per unit in its lifetime is hampering the growth and development of MSMEs. Technology is changing every three years and industries need to upgrade infrastructure in order to lower our processing costs and stay relevant. Kindly take necessary steps to do away with this ceiling to encourage modernization.

7. Building plan approval to be sanctioned by KIADB and KSSIDC even if they have handed infrastructure maintenance to the local civic bodies. Tariff under SAS and SWM cess should be made affordable for Industries and should not be in line with Commercial establishments.

8. Permission to have dormitories in the factory premises for the factory workers: To ensure convenience for both the workers and the employers, permission is to be given to have dormitories in the factory premises for the factory workers with basic standards of living for the workers.

9. Applicability of Factories Act to be enhanced from present 10 workers to 20 as amended by the Central Government.

We request you to kindly take up the above issues and ensure that they are implemented early for the all-round development of the Industries in our State.

Thanking you,

Yours sincerely,

Ajith Kamath Isaac Vas Vishal Salian

President, President, President,

KSIA. KCCI. DSIA.