MSMEs appeal to Finance Commission for special funds

The appeal was made before the visiting members of the Finance Commission to the State at a meeting in Kovalam

The micro, small, and medium enterprises (MSMEs) in the State have appealed to the 16th Finance Commission to give special consideration and allocate funds considering their importance to the economy in terms of contributions to domestic industrial production, foreign exchange earnings, and massive employment generation.

The appeal was made before the visiting members of the Finance Commission to the State at a meeting in Kovalam, said A. Nizarudeen, president of Kerala State Small Industries Association (KSSIA). A team from the Finance Commission led by Chairman Arvind Panagariya is in the State.

The KSSIA appeal to the Commission included a demand to raise the tax share of the State to 50%, increase the grant allocation to local self-government bodies, allocate special funds for Vizhinjam, an international cargo hub on the West Coast, and implement steps recommended by the Finance Commission in a time-bound manner.

The industrialists informed the Commission that for nearly three years, Kerala has added more than 3.35 lakh new enterprises through the Year of Enterprises Programme. Of these, 1,03,000 are run by women entrepreneurs, and around 100 are managed by transgender people. The State has also generated 7.11 lakh new jobs through investments of around ₹21,444 crore.

Meanwhile, KSSIA has welcomed the tariff offer to industries. Mr. Nizarudeen said that the current tariff had been raised nominally by ₹5 for enterprises using between 10 and 20 KW. Those using more than 20 KW would now have to pay ₹210 instead of the previous ₹200.

He added that MSMEs had paid ₹4,989.59 crore to the Kerala State Electricity Board (KSEB) during the financial year 2023-24. The small industries segment has also been allowed to use electricity between 6 a.m. and 6 p.m. up to 10% concessional rate.

Published - December 12, 2024 01:10 am IST