'Government committed to SSI development'

The coalition government is committed to the development of small scale industries (SSIs) in Karnataka and has provided several economic initiatives towards its growth, deputy chief minister S Siddaramaiah said while participating in the 'Kaigarika Adalat'.

The government is committed to the growth of these industries. The sector is expected to see a double-digit growth over the next three years, Sindhia said requesting support from various organisations, he added.

"The commitment reflects in the state's industrial policy and the common minimum programme (CMP), which has helped address several issues. The survival of SSIs in the state is critical as they provide employment to over 30 lakh people. The government has actively participated in resolving all issues in the sector," he said.

The industries minister said that to ensure the sector's growth, the government has constituted advisory boards and is setting up three industrial estates by 2005. Fifty acres of land have been acquired in Kollegal, 12 acres in Gundlupet and 12 acres in Chamarajpet for the estates, he said.

Of the Rs 309 crore subsidy provided to the sector, Rs 140 crore has been provided till now and the remaining will be provided in the next budget. The government is also considering reducing the tax on diesel used for power generators.

Siddaramaiah announced that it had been decided to extend the exemption of stamp duty for registration of industries. Value added tax (VAT) will come into force from April 1, 2005, he said.

These steps were aimed at helping the growth of SSIs, Siddaramaiah pointed out, trying to dispel concerns that the government is pro-agriculture and anti-industry.

Industries minister P G R Sindhia said that of the Rs 42,000 crore of exports from Karnataka, the major chunk originate from SSIs.

The exports by SSIs are about Rs 24,000 crore. The agarbathi industry employs over 8 lakh people. Of these, 5 lakh are employed in the garment industry and handicrafts. The leather industry employs nearly 1.5 lakh people, the khadi industry employs over 20,000.

There is growing demand in the European market for Indian products especially coir. The Kaigarika Adalat is being conducted by the Karnataka State Small Scale Industries Association (KASSIA), Department of Industries Commerce and Hebbal Industrialists Association (HIA) to address the SSIs problems. The state government has expressed interest in organising the Adalat in Hubli, Belgaum, Mangalore and Hassan soon.