Traditional industries such as handicrafts and handlooms have been the focus of the Kerala government. The Kerala State Small Industries Association (KSSIA) is now asking the State to revive the small-scale industry (SSI), by allocating equal amounts of funds to traditional, large and small scale industries, according to a newspaper report.
In a pre-Budget meeting, KSSIA highlighted the importance of fixing a ceiling on capital investment subsidies from INR10 lakhs to INR15 lakhs. The association also made a plea for multi-storied industrial estates and parks to be set up in every Panchayat, says the Hindu Business Line report.
KSSIA General Secretary Damodar Avanoor requested the ceiling on loans be raised to INR5 lakhs from the current INR2.5 lakhs. The government has already recognised the limited potential of large-scale industries in the State.
The Kerala State Industrial Development Corporation (KSIDC) should now remain focused on building an industrial corridor for SMEs. KSSIA also strongly recommends a developmental commissioner be appointed to look into the needs of SMEs.
The government should encourage SMEs to set up shop in the industrial parks by providing incentives – waiving off registration fee and stamp duty. Avanoor also pointed out that SSIs were mandated to get a 10 percent price preference on all government purchases, but only the Kerala Medical Corporation was following this. This subsidy expires March 2012.
The government should take immediate action to ensure price preferences are given to all SMEs. Avanoor added that the Centre’s directive of mandatory buying of 20 per cent of the government’s requirements from State industries should be implemented throughout Kerala.