Karnataka IT, S&T minister assures support for entrepreneurs

BANGALORE, INDIA: Minister for Planning, Statistics, IT, BT, Science and Technology S R Patil assured the entrepreneurs running macro, small and medium size industries that he would take up among others their core demand that the rate of VAT be reduced to 8 per cent from present 14.5 per cent.

He was addressing entrepreneurs after inaugurating a workshop on "Relevance of Energy Management for MSMEs" jointly organised by Engineering Manufacturers Entrepreneurs Resource Group (eMERG) and Petroleum Conservation Research Association (PCRA) at the World Trade Centre, Bangalore here today.

Earlier eMERG president Rajalakshmi; founder president Uma Reddy; chairperson seminars, Rekha Gopal; former president of FKCCI, J Crasta explained to Patil the difficulties faced by the MSMEs in the state. Due to exorbitant VAT rate MSMEs have become incompetent and not able to compete with those industries in the neighbouring states.

"People are purchasing products from other states because the entrepreneurs there were able to offer less price. Due to fall of India Rupee against US Dollars European currencies the condition of MSMEs had worsened further. Because they were not in a position to import needed inputs. Most of the MSMEs either have closed or on the verge of closure."

"If the Government would not come to the rescue of MSMEs, they would collapse completely. The VAT rate is less than 5 per cent in surrounding states. The State should also bring down the VAT rate par with them. At least it should be reduced to 8 per cent," they urged.

Agreeing with the industry leaders, Patil said he would take up the issue with Chief Minister, Siddaramaiah, who also holds portfolio of finance. If the State had to prosper the industries had to prosper. So were the job opportunities for lakhs of youth. The economy would be ruined had the industries collapsed, Patil said.

Patil announced Rs 72 lakh grant to eMERG, a not for profit organisation founded by women entrepreneurs for the benefit of women entrepreneurs. Managing Director of Karnataka Biotechnology, Information Technology Services (KBITS) assured continued policy and logistic support to the women entrepreneurs.