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North Karnataka can become MSME hub

Bengaluru, Sept 16 (KNN) Public Sector Undertakings (PSUs) can encourage Micro, Small and Medium Enterprises (MSMEs) to manufacture products in North Karnataka as it has natural resources and manpower in abundance, said the President of the Karnataka Small Scale Industries Association (KASSIA) today.

“There are more than one lakh MSMEs in north Karnataka and this part of the state is more suitable for setting up more small industries because of the availability of natural resources and cheap labour. PSUs should encourage local entrepreneurs by procuring products from them,” said the President of KASSIA BS Shashidhar to KNN.

About the new public procurement policy which had made it mandatory for PSUs to procure 30 per cent of their materials from MSMEs, he said, “nobody knows the exact figures of purchase by government departments from small businesses.”

There are about 90 PSUs, of which 76 are working and 14 are non-working.

Recently, the President of KASSIA has attended a vendor development programme, part of mega industrial exhibition ‘Incomex-2013’ and raised some of the issues.

North Karnataka has full potential to be industry hub if the government motivates them by buying more goods and provide them easy loan. This can bring overall development of the state. 

Further he said, banks delay in giving loans to MSMEs discouraging them from approaching the formal sourcing of finance. This affects the growth of the industry. The procedures should be made simpler and hassle-free.

Sometimes, small entrepreneurs keep changing their banks in a bid to get over the delay in sanctioning of loans and high interest rates.

At times, loans that have been sanctioned by banks are put on hold and disbursements are stopped, that affect the small businesses.

“The government should organise more buyer-seller meets and vendor development programmes for small businesses so that they can remain motivated to produce more,” Shashidhar said.