Industry & Economy
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SSI
`Clear backlog in investment subsidy to SSIs'
Our Bureau
MANGALORE, March 7
THE Kanara Small Industries Association (KSIA) has asked the Karnataka Government to take steps to provide adequate Budgetary support for the entire investment subsidy due to the small-scale units in the State.
Addressing a news conference here on Friday, primarily to focus on the present scenario faced by small-scale industrial units in the era of liberalisation and globalisation, the KSIA President, Mr K. Jayaraj Pai, said that the backlog in the entire State is in the range of Rs 390 crore with the Dakshina Kannada district alone accounting for Rs 18 crore. Also, many units which have taken bridge loans at a high rate of interest are now in the doldrums because their dues have crossed the sanctioned subsidy limit and are facing an acute shortage of working capital.
With around 40 per cent of the SSIs in this region having closed down according to estimates, KSIA, which represents 400-odd units in this region, feels that the high rate of interest on borrowings, the high power tariff due to cross-subsidisation and the global economic slowdown have been the major factors for the crisis facing SSIs.
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