Bengaluru, Feb 22 (KNN) The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has submitted its pre-state budget memorandum for 2025-26, emphasising investment revival, infrastructure development, and the need for a separate policy for micro, small, and medium enterprises (MSMEs).
FKCCI highlighted the necessity of a distinct policy for micro enterprises, stating that micro units, which constitute nearly 99 per cent of MSMEs, have a turnover of less than Rs 5 crore. In contrast, medium enterprises generate revenues of up to Rs 250 crore.
Given this significant disparity, FKCCI urged that micro and medium enterprises should not be categorised together. The body also called for a state-specific procurement policy to ensure that government departments source products and services from MSMEs within Karnataka, in line with existing central government policies.
Regarding industrial infrastructure, FKCCI reiterated the demand for dedicated land allotment for plastic parks with recycling units, a proposal previously accepted by the Karnataka Industrial Areas Development Board (KIADB).
Additionally, it emphasised the need to boost the plastic recycling sector. Addressing challenges in land acquisition, FKCCI called for reforms in KIADB and the Karnataka State Small Industries Development Corporation (KSSIDC).
It noted that the high cost of land in KIADB Industrial Areas remains prohibitive for SME entrepreneurs, making it difficult to secure bank loans.
The body recommended that KIADB reserve 30 per cent of land allotment for micro and small industries and 80 per cent for large industrial units.
Further, FKCCI sought interest subsidies and requested an exemption from the 9 per cent electricity tax for industrial consumers, particularly MSMEs. It also advocated for a reduction in the Agricultural Produce Market Committee (APMC) cess, currently at 0.6 per cent, and proposed modernising APMC Yards with enhanced infrastructure.
Additionally, FKCCI raised concerns over the regulatory burden on industrialists, highlighting the excessive number of outdated and redundant compliance requirements.
It urged the government to streamline regulations by eliminating obsolete mandates and simplifying processes to align with current industrial needs.
(KNN Bureau)
