Stakeholders representing micro, small and medium enterprise (MSMEs) have urged the government to reserve 50% of Karnataka Industrial Area Development Board (KIADB) plots for MSME and Small-Scale Industry units.

Submitting a memorandum to Minister for Large and Medium Industries Jagadish Shettar here on Sunday, the stakeholders said though the quantum of investment was small in MSMEs and SSIs, the jobs generated were more in number and hence they should be encouraged. “These industries are not capital-intensive, but are labour-intensive,” they said.

Mysore Industries Association (MIA) said KIADB used to allot at least 60% of the industrial plots to MSMEs though there was no policy stipulating it. The remaining 40% used to be allotted to medium and large industries, as per the statistical details of the past 50 years.

However, the board resolved in one of its meetings last year that only 10% of the development plots should be earmarked for MSMEs now. This, it was pointed out, would hit the growth of MSMEs. The contribution of MSMEs to the country’s GDP and export is 45% of all industrial output, and they should be encouraged, said Mr. Vasu, president of MIA.

Mysore Chamber of Commerce and Industry (MCCI) said some of the approach roads to industrial areas were in pathetic condition. It urged the KIADB to pay attention to improving the infrastructure. The MCCI said transportation of materials had become a major issue. It also urged the Minister to reduce the KIADB land rates to make things more industry-friendly.

The KIADB was also faulted for charging penalty for delay in project implementation even if the entrepreneurs could not be held responsible for legal hurdles in starting of projects. Such cases need to be sympathetically considered and penalty should be waived, said representatives of MCCI.