New industrial policy for karnataka

With elections in mind the Karnataka government announced a new industrial policy intending to replicate the success achieved in Gujarat.

Some of the features of the new industry policy for 2009-2014 are:-

• Rs 30,000 crore to create additional one million jobs in the industrial sector in the next five years.
• To enhance the contribution of manufacturing sector to the state Gross Domestic Product to 20 per cent by end of policy period and priority for human resources development.
  
• 1000 to 2000 acres of land would be acquired and developed in each district for establishment of industries including foreign investments.
  
• A policy would be framed to ensure better price for farmers towards the land acquired for the purpose.
  
• New airports would come up in Shimoga, Hassan, Gulbarga, Bellary, Bidar and Bijapur districts along with 11 Air strips for other districts.
  
• Investments and concessions to cover new industrial investments including expansion, modernisation and diversification in 166 taluks out of 176 taluks in the state.
  
• interest free loan against VAT payment by large and mega scale industries
• small and medium industries will be eligible for production or employment-linked investment subsidy of Rs 5 lakh to Rs 35 lakh, stamp duty exemption ranging between 75 to 100 per cent in respect of all categories of industries for purchase of approved industrial layout and also for registering their term loan documents.
• five per cent interest subsidy on term loan availed by micro enterprises and incentives and concessions to export oriented industries.
  
• A separate Special Economic Zone (SEZ) policy. The new policy, aiming to facilitate smooth establishment of such zones, will permit acquisition of lands only on the consent of the land owners. It comprised incentives for developers which among others included exemption from state taxes for all purchases exemption of electricity duty, exemption of labour welfare cess and capital subsidy for CETP.
• The Government will also develop four eight-lane roads under the Suvarna Karnataka Development Corridor Programme.
• 4,000 acres of land to Ministry of Defence for setting up of all defence related activities in Challakere taluk of Chitradurga District.

Looking at all the steps taken the state has surely addressed many concerns and one feels like the government is ready to do something for the people unlike the center which only boasted about how it ruled for the last five years in the last budget.

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