Latest news with #FKCCI
Time of India
08-05-2025
- Business
- Time of India
KCCI urges for micro and small-scale industries participation in MSME conclave
Hassan: Karnataka Chamber of Commerce and Industry (KCCI) urged micro and small-scale industries from the region to participate in the three-day India MSME Conclave 2025 , scheduled to be held from May 30 to June 1 in to the event, a delegation from FKCCI, KASSIA, and Peenya Industrial Association (PIA) visited the Hassan Industrial Association. They had a discussion with office bearers, entrepreneurs, and District Industries Centre officers in Kiran, director of FKCCI and chairman of the IT BT Committee, said the Conclave 2025 is a golden opportunity for entrepreneurs. FKCCI, KASSIA, and PIA are coming together to host this event for the first time in history. The event is specially designed for the benefit of medium and small industries. There will be 250 Chalkere, chairman of the FKCCI Industrial Committee, explained the India MSME Conclave 2025 and encouraged industrialists to make use of the director of the District Industries Centre, Umesh also ensured 100% support for this event by mobilising more industrialists to visit. Rangaswamy, the director of KASSIA, KM Shivmurthy, director of FKCCI, Sudharshan, secretary of the association, and HR Madan Kumar, honorary president of HADSSIA, were present.
New Indian Express
07-05-2025
- Business
- New Indian Express
BBMP's new waste fee draws flak from FKCCI over Rs 12/kg charge on commercial units
BENGALURU: The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has expressed its concern over BBMP implementing a Solid Waste Management (SWM) user fee, effective April 1, 2025. FKCCI president MG Balakrishna said the business community is unhappy with the fee structure. The municipality has fixed Rs 12 per kilogram of waste for commercial properties. 'Under the new policy, residential properties are charged monthly fees ranging from Rs 10 to Rs 400 based on built-up area, while commercial establishments are levied Rs 12 per kilogram of waste generated. An annual increment of 5 per cent is also stipulated. However, the current fee structure raises several concerns. The flat rate of Rs 12 per kg for commercial waste does not account for diversity in business operations and waste generation levels. For instance, a small retail outlet and a large manufacturing unit are subjected to the same rate, which may not be equitable,' the trade body said in a press release. FKCCI also demanded clarity on the disclosure of how collected fees will enhance waste management infrastructure and services, and appealed for rebates or reduced fees to encourage businesses to manage waste. The FKCCI urged BBMP to engage in constructive dialogue with the business community to refine the SWM, ensuring environmental support without imposing undue burden on industry and trade.
New Indian Express
24-04-2025
- Business
- New Indian Express
Minimum wage hike will kill MSMEs: FKCCI
BENGALURU: Condemning the recent increase in minimum wages across Karnataka, the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) warned that the sharp hike could severely affect micro, small and medium enterprises (MSMEs), especially those in industrial hubs like Peenya. In a discussion held with various member industry associations on Wednesday, FKCCI pointed out that the revised minimum wages, especially in Zone 1 areas, have gone up from approximately Rs 15,000 to Rs 26,300 — a jump that many small businesses say is unaffordable and threatens their survival. According to a study conducted by FKCCI among its member units in the area, around 20% of these units could be forced to shut down if the government does not take immediate corrective steps. Since Karnataka's cost of doing business is now much higher than in neighbouring states like Tamil Nadu, Telangana and Andhra Pradesh, businesses are worried about losing orders and are considering shifting operations to those states. FKCCI members pointed out that the increase is exceptionally high compared to earlier stages and does not take into account the ground realities faced by small industries. Businesses operating on annual contracts and thin margins said they are already struggling with rising costs in areas like licensing, power tariffs and labour. FKCCI President MG Balakrishna said, 'We fully support fair compensation for workers. However, these indiscriminate wage hikes, made without evaluating the actual paying capacity of small-scale industries, are pushing them to the edge. Karnataka will lose its competitive edge in attracting investments, especially in labour-intensive sectors such as textiles, light engineering, electronics and packaging.' He added that if MSMEs continue to struggle, the state may also lose significant tax revenue and employment opportunities as businesses move out to other states. The FKCCI members requested the state government to introduce separate minimum wage slabs for MSMEs, different from those for large industries. It also urged the state to set up a wage rationalisation committee to review the current structure. Additional relief measures proposed include power tariff subsidies, waivers on labour cess and working capital support for small businesses.
The Hindu
23-04-2025
- Business
- The Hindu
FKCCI calls for a quick reassessment of minimum wages to prevent closure of MSMEs
The cost of doing business in Karnataka is now significantly higher than in neighbouring States such as Tamil Nadu, Telangana, and Andhra Pradesh and such cost escalations coupled with an improper minimum wage structure have been putting a lot of pressure on small entrepreneurs in the State, said M.G. Balakrishna, president of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), on Wednesday. 'The cost of doing business in Karnataka is now significantly higher than in neighbouring States like Tamil Nadu, Telangana, and Andhra Pradesh,' he said. The FKCCI, after wide consultations with member industry associations, has voiced grave concern over the recent hike in minimum wages across Karnataka, highlighting its devastating impact on the State's industrial landscape, particularly on the micro, small and medium enterprises (MSME) sector. Speaking at a special meeting organised by the trade body for its member associations here, he demanded an urgent reassessment of minimum wages to prevent the closure of the MSME units in the State. 'The indiscriminate wage hike, without assessing the paying capacity of small-scale industries, is leading to a situation where many of them are considering shutting down,' he cautioned. At the meeting on Wednesday, representatives of the Peenya Industrial Estate, Asia's largest small-scale industrial cluster, revealed that the increase in variable dearness allowance (VDA) and resultant wage hike has rendered the operations of many small units financially unviable, and consequently, some 20% of units were at risk of closure if the government did not take immediate corrective steps. The high minimum wages, while well-intentioned, were eroding Karnataka's competitive advantage in attracting investments, especially in labour-intensive sectors such as textiles, light engineering, electronics, and packaging, Mr. Balakrishna added. The trade body further cautioned that, if a high wage regime continued, there would be loss of jobs across the State and loss of tax revenue to the government. 'Under a high minimum wage structure, the MSMEs will succumb to closure or decide to shift to neighbouring States where the minimum wages are lower than what they are in Karnataka,' he said. Some of the recommendations made by the FKCCI to the State government include introducing differentiated minimum wage slabs for MSMEs vs. large industries, immediately convening a wage rationalisation committee, and providing relief through power tariff subsidies, labour cess waivers, or working capital support. The trade body also asked the Central government to enforce a uniform national minimum wage ceiling, announce wage-linked incentives or subsidies under MSME schemes, and reduce the regulatory burden on small industries to retain employment generation. The FKCCI also urged various labour unions and civil society outfits to participate in constructive dialogue and recognise the unique vulnerabilities of the MSMEs, which collectively contribute over 45% to industrial jobs in Karnataka.
