Over 600 Bengaluru-based MSMEs in limbo as Bescom denies power connection

Over 600 micro, small, and medium enterprises (MSMEs) in Bengaluru with a cumulative investment of about Rs 2,000 crore are unable to start their manufacturing operations for lack of power connectivity. The Bangalore Electricity Supply Company (Bescom) is not providing them power connection for constructing their factories in revenue lands and not obtaining building completion and occupation certificates from the concerned authorities.

Bescom’s move to withhold their applications for new power connection subsequent to the Supreme Court order issued in December 2024 which directed the state governments to halt new power and water connections to buildings that have been constructed without approved plan. Any new building that has not been issued completion and occupation certificates from the concerned authorities is denied power connection.

“The Karnataka government implemented the apex court order immediately. As a result, about 25,000 applications from the MSME sector are pending for new power connections across the state since February this year”, Hussain S.M, General Secretary of Karnataka Small Scale Industries Association told DH.

He said, "The delay in power connection is impacting the small scale units very badly. These units have taken huge loans from banks and if they do not start their manufacturing immediately, their loan repayment will stop and their accounts will turn into NPAs. It will also impact jobs in the sector," Hussain said.

He urged the state government to process the MSME applications and provide power connection immediately. "The government should also file a review petition in the Supreme Court to modify the judgement so that industries do not suffer further," he suggested.

Many MSME units have constructed their factory buildings on revenue lands that were not considered industrial estates much before the apex court came out with its order, he added.

When contacted, Bescom officials said that they were helpless in this regard since it is a Supreme Court directive. However, officials said that the Urban Development Department is planning an amendment to a few bye-laws to solve the issue of the OC mandate for power supply.

Cut-off box - Kassia to hold vendor development programme for MSMEs
Bengaluru DHNS:MSME Development & Facilitation Office under the Ministry of MSME is organising a two-day vendor development programme in association with District Industries Centre and Karnataka Small Scale Industries Association (Kassia) between August 21 and 22 at the association's auditorium in Bengaluru.
The main objective of this programme is to provide a platform for MSME sector for developing marketing opportunities with central public sector undertakings and central government departments as per the Public Procurement Policy 2012 B R Ganesh Rao President Kassia said.
During the event CPSEs such as BEL BHEL DRDO HAL MRPL NAL Rail Wheel Factory and South Western Railways will be showcasing their products and sensitising on their requirements and highlight the process for vendor registration and disseminate information about the product and services they are looking for procuring from MSMEs. Experts from GeM TreDS Canara Bank and IDBI will also share information during the seminar and hold one-to-one interactions to enable MSMEs to express their difficulties and solve their issues said Deveraj K Joint Director MSME-DFO.
He said as per the policy every central ministry/ department and PSU shall set an annual target for 25% procurement from MSME sector. A sub-target of 4% out of 25% target of annual procurement earmarked for procurement from MSMEs owned by SC/ST entrepreneurs and 3% from women entrepreneurs.
“It is a unique opportunity for micro and small enterprises to showcase their products and avail marketing linkage with the CPSEs” Deveraj said.