'Sidbi not lending to SMEs'

When captains of trade interact with government officials, sparks are bound to fly. All the more so, when the industrialists are in a somber mood. At the Interaction Meet organized by KASSIA with Sri S.S. Dhillon, Director, MSMEDI, Bangalore earlier this week, the gathering of entrepreneurs were somewhat restless in the aftermath of the Union Budget, which had nothing substantive to offer for the small scale industry. But a strange thing happened. Within minutes of the meeting, the mood turned brighter and there were smiles all round. And in a fitting climax, representatives of an industry association warmly complimented the chief guest and KASSIA for resolving KSSIDC-related issues that had been hanging fire for over five years.

At the outset, Sri M.C.R. Shetty, President, KASSIA, in his welcome address, described Sri Dhillon as a “friend, philosopher and guide” of the small scale industry in Karnataka, and appealed to him to guide the industry in the specific areas of vendor development, marketing and technology upgradation.

To complaints from all round on inadequate infrastructure, governmental apathy and indifference, practical difficulties in getting cheap credit and bank finance, Sri Dhillon repeatedly appealed to the members to give him specific cases and promised a solution “within 20 days” by taking up the matter “at the highest levels”. It also seemed as if he was impatient with anything bordering on cynicism. “We should not think small,” he declared, “Results will come, when we are determined, it will happen.”

The MSMEDI Director also weaved in a blueprint for development of MSMEs in his address. He stressed the setting up of raw material banks, cluster approach, opening of entrepreneur and business clubs to add value and strengthen the industry’s bargaining position. “When you have a raw material bank, you can procure raw material at the lowest prices, you can source your requirements in bulk, you will have access to international markets, you can organize buyer-seller meets and so on. It will add a cutting edge to your product or service and enable you to be globally competitive,” he pointed out.

Sri Dhillon also expressed surprise that very few industrial establishments had opted for ISO 9000 certification in Karnataka. Quoting statistics, he pointed out that only 50 units had availed of ISO reimbursement scheme out of three lac industrial units in the last one year, and urged the industry association representatives to motivate and educate their members about the importance of ISO certification and use the facilities available. He also assured that he would talk to the authorities about extending a grant for ISO for the auto sector.

When a member complained that he had applied for ISO Subsidy two years back and was yet to receive it, Sri Dhillon promptly declared that he would get the same cleared within the next 20 days.

Responding to a query from a member about the need for separate registration by a SSI unit for availing benefits under government schemes, Sri Dhillon clarified that no separate registration is necessary and that the SSI registration issued by the appropriate State government authority would be sufficient for the purpose. This is an issue that very few members are aware of, and there is a misconception among entrepreneurs that they need to register afresh as is the case in Maharashtra.