Our Bureau

Kochi, Feb. 6

THE Kerala State Small Industries Association (KSSIA) has submitted a pre-Budget memorandum to the State Finance Minister requesting him to allocate at least Rs 50 crore for village and small industries in the 2006-07 State Budget.

The Association President, Mr Xavier Thomas Kondody, said there is an inadequacy of plan funds for the small-scale industries and an outlay of Rs 28.52 crore is there now for the small scale sectors for 2006-07.

He pointed out that there are 17 ongoing schemes under the Industries Department, which are all to carry its implementation with this meagre fund availability.

As the outlay sub divided to infrastructure developments is only Rs 50 lakh, he urged the Finance Minister to provide at least Rs 5 crore for this particular scheme. The existing industrial estates and development plots are all in a very bad shape with regard to water supply schemes, he added.

The seed capital loan fund is only Rs 500 lakh for assisting 500 units. Even under the recent `Pretyasha' scheme more than 25,000 small units are registered. This allocation also is to be doubled at least, he said.

He also urged the Government to grant 30 per cent subsidy on interest payments to banks and financial institutions for new SSI units for the first three years of inception or to a maximum amount of Rs 2 lakh. He also demanded an allocation of Rs 500 lakh in addition to the present plan outlay for small-scale industries.

There are number of non-working PSUs with huge assets of land and buildings. Such complexes could be converted into small-scale industrial estates, if the Government could have a special scheme under budgetary support. He demanded a special outlay of Rs 10 crore for conversion of sick/abandoned PSUs.

Referring to introduction of entry tax for printed materials, KSSIA suggested that the printing jobs should be entrusted with only registered printing units. The entry tax should be fixed for any item of printed material bought in from other States.

On value added tax, the association suggested exempted units should be able to avail the deferment facility only to the extent of the required balance amount under an annual estimation till the expiry date of the exemption and not for the full remaining amounts as specified in the exemption certificate.

To avail the deferment facility, units should be allowed to either provide national savings certificates or submission of bank guarantee or filling bond without two personal guarantors separately.

(This article was published in the Business Line print edition dated February 7, 2006)
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