Karnataka CM promises dedicated MSME Department to promote small industries
Chief Minister Siddaramaiah announced on Saturday that his government will create a dedicated MSME department — complete with its own Minister, principal secretary and staff — so that small industries get the focus they deserve.
Unveiling what he called 'the biggest structural reform for Karnataka's small businesses in decades,' Mr. Siddaramaiah addressed the Karnataka Small Scale Industries Association (KASSIA) at its platinum jubilee event, declaring that labour, revenue, and industry Ministers would meet within days to discuss this issue.
Echoing this, Deputy Chief Minister D.K. Shivakumar promised land, power, and single-window clearances to attract investment and generate 10 lakh new MSME jobs over the next five years.
KASSIA president M.G. Rajagopal welcomed the announcements but cautioned that spiralling costs and regulatory hurdles continue to threaten the competitiveness of small industries. In a memorandum submitted to the Chief Minister, Mr. Rajagopal raised issues including an 80% rise in minimum wages, high electricity tariffs, mandatory e-khata for property documentation, stamp duty hikes on mortgages, and the lack of industrial land allocation by KIADB.
The memorandum also called for a separate minimum wage policy for MSMEs, a dedicated industrial policy, and fixed electricity tariffs for small enterprises.
KASSIA demanded the reduction of stamp duty on hypothecation from 0.5% to 0.1%, with a cap of ₹25,000. The absence of plan approval mechanisms in rural areas, the denial of power connections without occupancy certificates, and exorbitant property taxes were flagged as urgent concerns.
KASSIA further urged the government to direct KIADB to ensure 15% land allocation in industrial areas for MSMEs, and to amend the Land Reforms Act to allow KSSIDC to directly acquire and distribute small-sized plots. On e-khata, the association requested simplified implementation and temporary flexibility to enable transactions.
Founded in 1949 and representing over 6,000 small-scale units, KASSIA marked its jubilee by launching a B2B e-portal, employment platform, sourcing hub, and a 50,000-sq-ft skill and product center to support rural industrial readiness.
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