Four help desks abroad to attract FDI

The State government has proposed to establish four help desks in Japan,Taiwan, the USA and Germany to attract foreign direct investment (FDI).

The desks, according to the Commerce and Industries department, will help in facilitating FDI in Karnataka. While the modalities have not been finalised, it is speculated that the Industry department would depute its personnel for direct contact with investors.

The budget has also provided an allocation of Rs 15 crore as seed money, or angel funding, for new and innovative projects, which will be vetted by the Commerce and Industries department.

Expressing his disappointment, S Venkatramani, co-chairman, indirect state taxes expert committee, Bangalore Chamber of Commerce and Industries, said, “We had requested him to reduce VAT by 0.5 percentage point – from 14.5 per cent to 14 per cent. But that has been nullified. Our second demand was to make the process of land allotment for industries easy, provide quality power and improve transport facilities, so that the service sector does done well in Bangalore. Though the chief minister has set aside Rs 2,750 crore for development of Bangalore, there is no new project as such. We wanted him to take three or four projects which could have improved the quality of life in the City. But that has not been done.”

Placing emphasis on the khadi sector, the chief minister said the government would provide a Rs-100 crore package for weavers. With this, the previous arrears of electricity subsidy of Rs 45 crore will be completely cleared. In addition, a special package of Rs 27 crore would be implemented in three years to rejuvenate the woollen textile sector.

While former chief minister Jagadish Shettar had waived farm loans up to Rs 25,000, Siddaramaiah has shown similar generosity towards weavers. He has set aside Rs 41 crore for waiver of short-term loans of up to Rs 25,000 raised by weavers.