BANGALORE: In a proactive move to tackle the issues faced by the Micro, Small, and Medium Enterprises (MSME) sector in the State, Chief Minister Siddaramaiah has announced his intention to convene a crucial meeting. This meeting aims to discuss and find effective solutions for the challenges encountered by MSMEs. The Chief Minister made this announcement while addressing the recent allegations concerning the electricity tariff hike, clarifying that the increase in tariff rates was not intended to finance the Gruha Jyothi scheme.
Chief Minister Siddaramaiah, during a meeting with a delegation from the Federation of Karnataka Chamber of Commerce and Industries (FKCCI), led by its President B.V. Gopal Reddy, dismissed the claims that the burden of the Gruha Jyothi scheme had been shifted onto industrialists. He affirmed that the allegations were false and emphasized that the electricity tariff revision had no connection to the Gruha Jyothi scheme. The meeting, held on Friday, was also attended by Energy Minister K.J. George.
Government's Stance on Electricity Tariff: The Chief Minister's Office released a statement clarifying that the Congress government had not made any decision regarding an increase in electricity charges. He pointed out that the Karnataka Electricity Regulatory Commission (KERC) had implemented the tariff hike prior to the government assuming power. This clarification aimed to alleviate concerns that the government had initiated the tariff revision, assuring that the responsibility lay with the KERC.
Addressing MSME Sector Concerns: CM Siddaramaiah has taken a proactive approach to address the grievances of the MSME sector by proposing a separate meeting involving the Karnataka Small Scale Industries Association (KASSIA) and FKCCI. The Finance and Energy Departments will also be involved in this discussion, facilitating comprehensive deliberations on the demands presented by the delegation. The key demands include a reduction in electricity tax from 9% to 3% for small and medium industries, as well as high tension (HT) industries.
Furthermore, the industries have appealed for discounts on fuel escalation charges. Additionally, they have requested the implementation of an MSME policy and legislation, which are already in effect in other states. By considering these demands, the Chief Minister aims to provide a conducive environment for the growth and development of the MSME sector in Karnataka.
With the intention of addressing the challenges faced by MSMEs in the State, Chief Minister Siddaramaiah has pledged to convene a meeting dedicated to discussing their concerns. Refuting the allegations of financing the Gruha Jyothi scheme through the electricity tariff hike, the Chief Minister clarified that there is no correlation between the two. By involving relevant departments and industry associations, the government aims to find appropriate solutions to the demands put forth by the MSME sector.
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