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

Timely resolution of MSME concerns will strengthen investor confidence and improve the ease of doing business in the State, says trade body president, Ninganna Biradar

Published - September 21, 2026 11:01 pm IST - Bengaluru

Office-bearers of Karnataka Small Scale Industries Association handing over memorandum to Minister for Small Scale Industries and Public Enterprises Vijayanand Kashappanavar, at Vikasa Soudha on Monday. | Photo Credit: SPECIAL ARRANGEMENT

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.

At a consultative meeting held at Vikasa Soudha, the trade body submitted a comprehensive memorandum highlighting the critical issues faced by the MSMEs to Minister for Small Scale Industries and Public Enterprises Vijayanand Kashappanavar.

The memorandum also highlighted several critical policy, infrastructure, taxation and administrative issues affecting the MSMEs, including delays in issuing e-Swathu and e-Khata, particularly in rural and gram panchayat areas.

Ninganna S. Biradar, president of KASSIA, said that the MSMEs are major contributors to Karnataka’s industrial production, exports, regional development and employment generation.

“Timely resolution of their concerns will strengthen investor confidence and improve the ease of doing business in the State,” he added.

Published - September 21, 2026 11:01 pm IST

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