In an effort to bring in more investments for job creation in Karnataka by giving due importance to manufacturing and services sectors, industry body Bangalore Chamber of Industry and Commerce (BCIC) has made several amendments to the overhaul labour policy.
Briefing reporters on Friday, BCIC President H V Harish said, “Several amendments have been proposed to make it business and labour-friendly and even more investment into the state following the Rajasthan model. We believe it is imperative that the state use a similar mechanism.”
Several amendments were suggested by BCIC like closure of factories, and retrenchment and layoffs of workmen without government permission should be raised to a limit of 1,000 workers, from the current limit of 100. Rajasthan has proposed to increase this limit to 300.
Further, the amendments stipulate a three-year time limit for raising disputes and 30 per cent of registered workers should be the minimum required for union formation as against the 15 per cent currently. The Contract Labour Act should apply only to companies with more than 50 workers as against 20 currently, BCIC suggested.
“The state should develop sector-specific industrial zones along the corridor, and secondary corridors connecting other parts of the state to foster equitable, regional development, generate employment and thereby help in decongesting Bangalore,” Harish said.
Karnataka's current share of manufacturing as a share of state GDP is around 17.86 per cent. The Karnataka Manufacturing Taskforce has set a target of raising the share to 25 per cent by 2025, which is challenging yet achievable, BCIC said.
Karnataka should press for National Manufacturing Investment Zones (NMIZs) along primary and secondary corridors in the state, and boost private sector investment in this regard, BCIC said. The industry body urged the government to promote private sector investment in skills development, through a market-driven approach.
BCIC Senior Vice-President A N Chandramouli said, “The New Industrial Policy must focus on rationalisation of industrial growth in the state, viz., infrastructure, tax incentive and labour migration policy which will facilitate new investments to move industries out of Bangalore to tier-I and tier-II cities in the state.”