The Karnataka Small Scale Industries Association (Kassia) has urged the Central Government to announce fresh incentives for SSI sector for a year to bring normalcy.
Association President, A. Vijayendranath, in a release, said a programme which was introduced during the last recession in 2005 by the Prime Ministers Task Force, should be re-introduced.
This is required now as gross non-performing assets (NPAs) are mounting thereby creating distress to the MSE sector. “SSIs are already plagued by infrastructure deficiency, depressing market, cost escalation and tardy fund flow.
The State Bank of India’s gross NPA has touched 24 per cent in 2012-13. The sizeable capital assets built up over the years are remaining below the optimum usage,” he mentioned.