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

Officials of the Karnataka Small Industries Association handing over a memorandum to Minister for Small Industries and Public Enterprises Vijayanand Kashappanavar at Vikasa Soudha on Monday. | Photo credit: SPECIAL ARRANGEMENT

Approved capital grants and incentives of ₹ 2,880.18 crore are awaiting disbursement 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.

KASSIA has expressed serious concern over the prolonged delay extending up to four or five years in the release of sanctioned capital grants and incentives to industrial units.

The trade body pointed out that these huge delays over several years have created severe financial pressure on SMEs and adversely affected the sector’s production, employment, investment and working capital.

KASSIA urged the state government to immediately release pending subsidies, settle all eligible claims through a special time-bound drive and create a dedicated speedy mechanism for processing and releasing incentives to MSMEs.

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

The memorandum also highlighted several critical policy, infrastructural, tax and administrative issues affecting SMEs, including delays in issuing e-Swath and e-Khat, especially in rural and gram panchayat areas.

Ninganna S. Biradar, President, KASSIA, said MSMEs are major contributors to industrial production, exports, regional development and employment generation in Karnataka.

“Early resolution of their concerns will boost investor confidence and ease of doing business in the state,” he added.

Published – 21 Sep 2026 23:01 IST