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In a pre-budget memorandum, the Federation of Karnataka Chambers of Commerce & Trade (FKCCI) had written to the chief minister, requesting a coverage that would supply particular concessions, like reservation for procurement from MSMEs and an exemption from having to pay Earnest Cash Deposits (EMD) whereas competing for presidency tenders.
As per the Central coverage 25% of all of the purchases by all the federal government departments must be from MSMEs. Out of this 25%, 4% is reserved for MSME owned by Scheduled Castes and Scheduled Tribes and three% is reserved for MSMEs run by ladies.
HR Jairam, chairperson of the MSME Professional Committee underneath Bangalore Chamber of Trade and Commerce (BCIC) advised ET {that a} related scheme is put in place by the federal government of Karnataka with desire for Karnataka based mostly MSMEs. “We additionally request that MSMEs get funds on precedence. The state authorities may even have an association with banks to make funds inside 45 days. It will vastly profit the MSME ecosystem in Karnataka,” he stated.
Even with Revenue Tax guidelines clearing MSMEs’ payments inside 45 days, getting paid on time is a problem in an already cash-strapped sector, Srinadh Bhandari, Chairman of the Vitality Panel underneath Karnataka Small Scale Industries Affiliation (KASSIA) advised ET. “Whereas there are channels to enchantment delayed funds, we discover that many of the backlogs come from banks not paying up on time,” he stated.
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