FOR SMALL ENTREPRENEURS: Deputy Chief Minister B.S. Yediyurappa (third from right) speaking to Minister for Small-scale Industries and Sericulture Katta Subramanya Naidu and Lakshmi Venkatachalam, Principal Secretary, Commerce and Industries, at a me eting organised by the Karnataka Small-scale Industries' Association (KASSIA) in Bangalore on Monday. KASSIA President Hareesh P. Hegde is seen. — Photo: K. Gopinathan

BANGALORE: The Government will prepare a new industrial policy next month which will aim at tapping the potential of the small-scale sector.

Deputy Chief Minister B.S. Yediyurappa said here on Monday that the Government wants to make the State the most industrialised in the country.

Mr. Yediyurappa, who holds the Finance and Major Industries portfolios, was speaking at a meeting with small entrepreneurs on "Current issues and development of small-scale industries in Karnataka", organised by the Karnataka Small-scale Industries' Association (KASSIA).

He said many small-scale units have closed down and many others are in financial trouble on account of competition from multinational companies. The liberalisation policy of the Centre has not enabled small-scale industries to expand their operations. The new industrial policy of the State will be ready next month, he added.

Mr. Yediyurappa said the Government has released Rs. 85 crores in subsidy arrears to small entrepreneurs. Steps will be taken to end the licensing system. Support to small-scale units will be given through a single window agency. "The Government is aware of the problems confronting the sector" and will initiate measures to provide road, rail, and power connectivity to all industrial towns, he said.

The Deputy Chief Minister said the State ranked second in attracting foreign direct investment and fifth in domestic investment in the country. Many industrialists have shown interest in investing in the State. Industrial clusters will be set up in 25 districts, he added.

Addressing presspersons, he said the Government will appeal to the Centre to direct commercial banks to grant loans at six per cent rate of interest to farmers.

KASSIA President Hareesh P. Hegde submitted a memorandum to Mr. Yediyurappa. The association urged the Government to create a special purpose vehicle (SPV) for raising funds for the execution of projects and maintenance of facilities in industrial areas. There is delay in establishing the proposed industrial township authority, it said.

The association suggested that the SPV be formed under the Societies' Registration Act with representatives from the Department of Industries and Commerce, civic bodies and local industry associations. On an experimental basis, SPVs can be set up in Peenya and Bommasandra industrial areas in Bangalore, it said.

Minister for Small-scale Industries and Sericulture Katta Subramanya Naidu said the new industrial policy will solve the problems of tiny units. The Government will also address issues raised by entrepreneurs, he said.

Funds for building

Mr. Hegde urged the Government to release the balance of Rs. 75 lakhs (it has made available Rs. 25 lakhs) for the KASSIA Udyog Bhavan project and Rs. 20 lakhs for the proposed exhibition building.

Although the Government has, in principle, agreed to grant Rs. 10 lakhs to KASSIA each year, funds have not been allocated in the past three years, he said.

He requested the Government to release Rs. 10 lakhs to KASSIA to enable it to take up programmes.

Lakshmi Venkatachalam, Principal Secretary, Commerce and Industries; Mahendra Jain, Secretary, Small-scale Industries; Mohamed Sanaulla, Commissioner for Industrial Development and Director of Industries and Commerce, were present.

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