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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.
Time of India
23-04-2025
- Business
- Time of India
Minimum wage hike may trigger pricerise, hit jobs: Karnataka industry bodies
Bengaluru: Industry bodies have warned the state govt that its proposed minimum wage increase could trigger widespread price rises affecting everything from clothing to construction, with the financial burden ultimately falling on consumers. The Karnataka chapter of the Confederation of Real Estate Developers' Associations of India (Credai) has expressed serious concerns about the impact on housing prices. A Credai board member said: "At a national level, costs are already rising — from construction materials to basic living expenses. With the added wage burden, input cost will escalate, and builders alone won't be able to absorb it. This will eventually be passed on to homebuyers." "While marginalised groups are getting free power and subsidies, the govt must be cautious about policies that create a cascading effect on the sector. If the proposal is implemented, housing prices will go up by at least 40%. We don't view this move positively and will be submitting our objections to the govt," the member added. "With the cost of labour going up, builders will look at employing fewer people. All industries might slowly shift towards machinery instead of hiring people," he said. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trade Bitcoin & Ethereum – No Wallet Needed! IC Markets Start Now Undo The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) president MG Balakrishna urged the govt to reconsider the "abrupt wage hike proposal, which lacks consultation with stakeholders and does not reflect ground realities." "The move raises serious questions about the rationale behind the increase, especially at a time when industries are grappling with rising input costs and reduced margins." Peenya Industries Association president Shivakumar R warned that garment industries are among the worst hit—many of them are micro-units employing 100-200 workers, mostly women. "With profit margins already down to 5–7%, they simply cannot absorb the steep hike in minimum wages. One unit in Kengeri with 800 workers has decided to shift operations out of Karnataka. That means 3,200 lives are impacted if you count the families. If this policy isn't reviewed, many more garment units will shut down or move to neighbouring states, leading to massive job losses. This might even drive garment prices up," he said. Defending the proposal, Ravi Kumar SB, joint labour commissioner (child cell and minimum wages), said the govt took the decision after considering all factors and calculations done as per the Minimum Wages Act. ——— QUOTE "It (minimum wage increase proposal) is still a draft, and we are waiting for the response from people. After that, we will discuss the issue threadbare before coming to a conclusion. It's not a sudden decision, and talks have been going on for quite some time -Ravi Kumar SB, joint labour commissioner
