Over 600 micro, small, and medium enterprises (MSMEs) in Bengaluru, with combined investments of nearly ₹2,000 crore, are unable to begin manufacturing operations due to the lack of power connectivity. The Bangalore Electricity Supply Company (Bescom) has withheld approvals, citing a Supreme Court order from December 2024 that prohibits providing new power or water connections to buildings lacking approved plans, completion, or occupation certificates.

This directive has left around 25,000 MSME applications pending across Karnataka since February 2025, according to Hussain S.M., General Secretary of the Karnataka Small Scale Industries Association (Kassia). He warned that many small-scale units, burdened with bank loans, face the risk of turning into non-performing assets (NPAs) if operations don’t begin soon. “The delay will also affect jobs in the sector. The government must process pending applications and seek a review of the Supreme Court order to protect industries,” he said.

Bescom officials, however, stated they are helpless, as the matter stems directly from the apex court’s ruling. Meanwhile, the Urban Development Department is considering amendments to certain bye-laws to ease the requirement of occupation certificates for power supply in such cases.

In a parallel development, Kassia is hosting a two-day vendor development programme on August 21-22 in Bengaluru. The initiative, in collaboration with the MSME Development & Facilitation Office, aims to create marketing linkages for small enterprises with CPSEs and government departments under the Public Procurement Policy 2012.