Additional regional councils in Karnataka
The Karnataka government, in order to help the MSMEs in the state, has formed a Micro and Small Industry Facilitation council to serve the various MSMEs in the region of Mysore. At present, there is a council that is functioning at Bengaluru. This council serves as a state-level council. This means if any micro and small scale entrepreneur has a problem, he or she will have to go all the way till Bangalore to get the council’s help whenever there is an issue of recovery of delayed payments by medium, large industries, public sector undertakings, state and central government undertakings. The current council functions under the chairmanship of the development of commissioner and director of the Industries Department, the government of Karnataka.
The problem that the entrepreneurs faced was just not restricted to going to Bengaluru and filing a case. There was also a major delay when it came to decisions. The delay used to be from six months to a few years. This delay would force the small scale entrepreneurs to shut down their business, as they were going into heavy losses.
The situation of MSMEs in the state of Karnataka was very grim, because of the losses that they were making. This prompted the MSMEs across the state to urge the government to set-up separate councils at regional levels. This prompted the Mysore Industries Association (MIA) to appeal to the state government to set up a council in Mysore so that the MSMEs of the area benefit from it.
Some of the advantages that a regional MSME council will have are: Government undertaking that are both large and medium will have to make the payments to all the micro and small scale entrepreneurs who supply their products within 45 days from the date of purchase. In- case, there is a delay the defaulters will have to pay three times the interest to the entrepreneur.
In order to create more awareness among the micro, small and medium enterprises, MIA (Mysore Industries Association) will organise an awareness programme of the same. Role of the council, method of filing the application form and recovery steps are just some of the issues that will be addressed during the programme.
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