'Restore 15 p.c. price preference for SMEs'

BANGALORE, INDIA: In a memorandum to chief minister D V Sadananda Gowda, the Karnataka Small Scale Industries Association (Kassia) has demanded that the state government restore 15 per cent price and purchase preference for small-scale industries.

The association expressed hope this would help the industries in the state to be more competitive. “Some of the corporations like the KSRTC adopted a policy where the SMEs were asked to match L-1 rates of large industry. Some corporations paid 15 per cent higher price to the SME supplier,” said Prakash N Raikar, president, Kassia.

“Because of the ambiguity in the procedure adopted by each department in the 15 per cent price preference, this policy for the government corporations and public undertakings has been withdrawn and at present no SME can supply materials to any of the government undertakings,” he pointed out.

The association has also demanded the creation of a new post of development commissioner for SMEs and an independent secretariat for the SME sector to ensure continuity and concentration on the SME sector.