Banks not supporting Centre's loan schemes for entrepreneurs: Shivakumar

Karnataka Deputy Chief Minister D K Shivakumar on Saturday claimed that banks were not cooperating with the Central government's schemes aimed at supporting entrepreneurs, particularly those offering loans without guarantees or collateral.

Speaking at the inauguration of the Karnataka Small Scale Industries Association's (KASSIA) Centre of Excellence and Innovation in Bengaluru, Shivakumar underlined the importance of giving the younger generation opportunities to grow.

"KASSIA will succeed only if it exerts more pressure on the government than the large industries," he remarked.

He criticised the banks for failing to support the Centre's annoucements. "The Central government makes grand announcements like providing loans without guarantees or collateral, but banks do not comply. They prefer lending to those with a proven track record and are hesitant to support emerging entrepreneurs," the Deputy CM said.

He urged KASSIA office-bearers to actively work towards empowering the next generation, stating that fostering competition would naturally lead to improved quality. "Where there is competition, there is quality," he added.

Addressing concerns related to labour, Shivakumar said that industry representatives had recently apprised him of their challenges. "I have informed the Labour Minister that we will not allow any company to relocate out of Karnataka," he said.

He suggested that a delegation of four to five key representatives from the industry should meet Union Cabinet Ministers to voice their concerns, especially in light of potential shifts to Andhra Pradesh and Tamil Nadu.

Shivakumar also expressed disappointment that some political leaders fail to grasp the risk of firms relocating due to their narrow focus on the Information Technology and Biotechnology sectors, often overlooking other industries.