State owes sanctioned subsidies, incentives worth ₹2,880 crore to 3,716 industrial units: KASSIA

Sanctioned capital subsidies and incentives to the tune of ₹2,880.18 crore are pending to be paid to 3,716 industrial units in Karnataka, according to a memorandum submitted to the government by the Karnataka Small Scale Industries Association (KASSIA) here on Monday.

The KASSIA has expressed serious concern over the prolonged delay, extending up to four or five years, in releasing sanctioned capital subsidies and incentives to industrial units.

The trade body pointed out that these huge delays of several years have placed severe financial pressure on the MSMEs and adversely affected production, employment, investment and working capital of the sector.

The KASSIA urged the State government to immediately release the pending subsidies, clear all eligible claims through a special time-bound drive and establish a dedicated fast-track mechanism for processing and releasing the MSME incentives.