Karnataka Small Scale Industries Association (KASSIA) will be made as a partner institute in the skill development scheme to provide financial assistance, Union Minister for Micro, Small and Medium Enterprises (MSME) Virbhadra Singh said on Thursday. Inaugurating the KASSIA School of Business Management at KASSIA Udyog Bhavan in Bangalore, he said: “I am directing my development commissioner (MSME) Amarendra Sinha to make KASSIA as a partner institute in the skill development scheme to provide financial assistance to KASSIA in this noble venture.”

''I have already written to the Finance Minister for providing an enabling framework for equity formation,” he announced. Keeping in mind the increasing number of youth joining the job market in the coming years, he said the ministry has set a target of training 1.5 crore candidates by 2022 and more than 40 lakh during the 12th five year plan. “There is a need to equip the youth with skills and knowledge for giving them access to productive development,” Singh said. Unveiling a slew of initiatives taken by his Ministry for the development of MSME sector like public procurement policy for SMEs, which mandated 20% reservation for SMEs in all procurements by Government departments and PSUs in addition to a special quota of 4 % earmarked for SC/STs; target of training 1.5 crore persons within 2022 and more than 40 lakh persons during the 12th Five-Year Plan.

He said the ministry would give free training to SC/STs, women and physically challenged persons along with monthly stipend of Rs 500 per trainee; provision for 15 % capital subsidy on institutional loans upto Rs 1 crore availed by MSMEs under the Credit Linked Capital Subsidy Scheme (CLCSS); providing guarantee cover upto 85 % on collateral-free credit facility extended by lending institutions to new and existing SMEs for loans up to Rs 1 crore. KASSIA President Prakash N Raikar described the scheme as a first of its kind initiative for empowering the MSMEs in the country.