“There is an overall shortage of infrastructure for small industries... commerce ministry along with the State government must evolve SEZs in different clusters exclusively for the small sector, in order to speed up the process of setting up new small industries for export,” Karnataka Small Scale Industries Association (Kassia) said in a note to the Union commerce ministry.

“This will help tapping cluster development scheme provisions for funding various common facilities and specialised services for growth and development of small industries,” it added.

Kassia President M C Dinesh said “the opportunity available for small industries from the State is enormous. However, to remain competent and grow further we need enhanced infrastructure and a dedicated space to form clusters.”

Kassia has already written to State SEZ development officer, as also to the Centre in association with other industry bodies like BCIC, Fkcci and Fieo. BCIC Secretary General Sampath Kumar and Fkcci President J Crasta pointed out that increasing competition from other markets like China are mainly due to lack of facilities for small sectors in India. “We need the government to identify areas where clusters can be formed so that there is a dedicated cluster for exports of goods and services enable small players to modernise and expand and grow,” they added.

Identified land
Kassia said it has identified 150-200 acres of land, owned by a private player in Dobbospet industrial area, and are in talks with the government for acquisition and conversion of land. It has requested the government to acquire land through its nodal agency (KIADB), and to push the Centre for approval.

Similarly, Fkcci has identified about 95 acres of land in Solur and is in the process of finalising an official proposal to the State. Further, the associations have stressed that unlike regular SEZs, the government will not have to identify large areas of land, but to identify areas with 20-30 acre of land and form SEZs for specific industries.

Exim Bank Director (Eximus Centre) S Srinivas small units in Karnataka and Tamil Nadu are driven by technology. Forming clusters will help them.