FKCCI seeks Rs 21,550 cr financial aid for MSMEs

Bengaluru: The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has requested the government to unveil a special package to bail out the lockdown-hit MSMEs in the State.

In a letter, FKCCI has drawn the attention of Large and Medium Scale Industries Minister Jagadish Shettar to the devastating impact of the second Covid wave on the MSMEs.

"MSMEs in Karnataka were hard-hit by 1 wave of Covid-19 pandemic and just started recovering since January 2021. Because of the 2nd wave and strict lockdown measures imposed by the State Government, for more than a month, they are again forced to shut their operations. Even if lockdown is lifted gradually in the month of June 2021, it takes at least 3-6 months for MSMEs to function with full installed capacity," the letter read.

The FKCCI has sought Rs 21,550 crore as financial assistance to help the industries recover losses. "It may be noted that all these concessions/ subsidies would be released through the concerned Government Institutions like ESCOMs, BBMP, Local Bodies, Banks, Financial Institutions and Department of Industries and Commerce based on the actual facts. There will not be scope for any misrepresentation or misutilization," Perikal M Sundar, president of FKCCI said.

He has also requested the minister to conduct vaccination drives for staff and workers in the industrial units, service and trade establishments in all the districts on priority.

The other demands include setting up of Covid care centres and oxygen generation units in major industrial areas and estates established by KIADB, KSSIDC and co-operative institutions throughout the State.

"APMCs which are other clusters of economic activities also should be included in this drive. Industries of whose employees and staff have been vaccinated and who follow the SoP issued by the government should be allowed to operate," said the letter to Shettar. 

List of demands 

♦ Exemption of Fixed Minimum Charges on Power sanctioned for LT and HT Industrial Consumers – Rs 360 crore

♦ 20% concession on property taxes and license fees payable to BBMP and local bodies for two years -- Rs 8,000 crore

♦ Reimbursement of salaries and wages for 3 months- Rs 6,000 crore

♦ Projected interest for half year as received from SLBC- Rs 5,190 crore

♦ Projected interest for half year on loans extended by KSFC- Rs 2,000 crore