Stakeholders from micro and small enterprises in Mysuru are keeping their hopes pinned on the announcement of critical industrial infrastructure development fund to boost MSMEs in the forthcoming Budget.
The Union Budget is slated for presentation on Saturday for the financial year 2025-26 and MSMEs, which generate maximum employment at minimal investment, are keen that some of their concerns are addressed.
Suresh Kumar Jain, general secretary of MSME Association, said that a corpus fund for development of critical infrastructure of industrial areas existed in the past. It used to be a central government grant and the local stakeholders used to chip in with 10% of the amount for any approved industrial infrastructure related projects.
‘’Mysuru needs a major financial infusion to beef up the existing infrastructure if it was to live up to its potential as an emerging investment destination after Bengaluru’”, said Mr. Jain.
Some of the infrastructure work that need to be taken up on a priority basis is development and upgrade of roads, civic amenities, creating industrial waste recycling plants etc. Besides, the city needs infusion of funds for airport upgrade in the absence of which investment and growth may be difficult to achieve, said Lingaraju, president, Mysuru Chamber of Commerce and Industry (MCCI).
Though the State government is equally responsible for infusion of funds, a central component with a clause that the State should provide matching grants, will give a boost to funding the projects, he added.
Stakeholders believe such provisions can revitalise the investment scenario in Mysuru and help lure more industries that can lead to job creation. Funds from such a head can also be used to upgrade machinery infrastructure established at manufacturing centres failing which MSMEs will be left grappling with outdated manufacturing machinery that will also impact their efficiency and competitiveness.
Members of MSME association aver that their business was still recovering from the disruptions caused by the pandemic and hence, it was also imperative for the government to redefine the investment threshold of MSMEs. At present, the threshold for MSME units is ₹1 crore of investment and ₹5 crore turnover.
‘’’But more than 90% of MSMEs have an investment way below ₹1 crore and their turnover is also less. As a result, they are unable to avail benefits of policies and subsidies that are extended to MSMEs with investment of ₹1 crore,” said Mr. Jain.
Mr. Lingaraju said redefined investment limit could open doors to greater financial assistance and incentives for such units, allowing them to scale up and improve their technological capabilities.
Cluster development
The local stakeholders said cluster development was critical for industrial growth and though many such clusters were announced for Mysuru – they have not materialised so far. This includes the textile and printing clusters which were announced for Mysuru in the past. Mr. Jain said cluster development was important for collaboration and cost reduction and hence, MSMES are pinning their hopes on the coming Union Budget.
