Measures needed to keep industries afloat in Karnataka:KASSIA

The Karnataka Small Scale Industries Association (KASSIA) on Tuesday demanded a slew of measures by the Centre and the state government to keep industries "afloat in the wake of looming recession".

Noting that the Karnataka government offering funds at four per cent interest rate on small and medium enterprises has been of great help, the KASSIA said the central government should also consider similar measures.

"Four per cent interest through Karnataka State Financial Corporation has been of great help to the SMEs. We urge similar measures from the Central government and advance money at four per cent interest to SMEs through the banks by subsidising the interest rates and also working capital at low interest rate," KASSIA president R Raju told reporters.

He said most of the units operate in Karnataka from private industrial areas, which lack infrastructure, making operations uneconomical to the industries.

KASSIA said most of the existing industrial areas and estates need immediate attention for upgradation of facilities like roads, power distribution network, water and sewage and common effluent treatment plants.

Stating that the recession was for real and there were challenges galore for the industry to survive, Raju said the measures announced by Union Finance Minister Nirmala Sitharaman to mitigate the downturn were inadequate.

He said automobile sector was badly hit as sales have come down drastically, hitting ancillary industries.