The Kerala State Small Industries Association has demanded at least ₹5,000 crore to be set aside in the upcoming State Budget for micro, small and medium enterprises (MSMEs), taking into consideration various programmes that have either been launched or finalised by the State government as part of its drive to bring in fresh investments.
Association president A. Nizarudeen said in the association’s pre-Budget suggestions to the Finance Minister that the Year of Enterprises campaign, launched in 2022-23, had defied expectations and brought in investments to launch over 3.35 lakh new enterprises. Hence, the Budget must set aside substantial sums for providing subsidies for these enterprises and the new ones that are coming.
The government plans 100 private industrial parks. With each of the parks entitled to get ₹3 crore in government support, ₹300 crore will have to be set aside for the purpose. A sum of ₹2,000 crore will be needed to provide support to industries under ‘Mission 1,000’ programme.
The association also said that the subsidies allotted to industrial units must be distributed quickly to avoid penal interest. It also demanded that the advantages offered to big industrial units be extended to small units as they played a big role in the overall economic health of the country and the State.
The association also suggested that the limit of ₹3 crore set on subsidies to private industrial parks be removed and that small and medium enterprises (SMEs) be taken out of the purview of making contributions to welfare funds.
It also appealed to the Finance Minister to help bring about an industries protection law for investors who have received all clearances from the authorities.
The association also reiterated its demand that the government intervene to aggregate raw materials and provide them at reasonable rates to industrial units. The materials include sand, cement, steel, and aluminium.
Published – January 28, 2025 12:41 am IST