New industrial policy approved

Incentive thrust for micro, small and medium enterprises

The State Cabinet on Thursday gave its nod to a new industrial policy which envisages to attract an investment of Rs five lakh crore and generate employment to the tune of 15 lakh during 2014-19.

Briefing reporters after the Cabinet meeting, Law Minister T B Jayachandra said the Industrial Policy 2014-19 will provide thrust to micro, small and medium enterprises by providing them incentives and subsidies.


It will also encourage SC/STs and minorities to set up industries, he said. The policy will be formally announced by Chief Minister Siddaramaiah in the next 10 days.


Jayachandra said for incentives purpose, the State has been divided into six zones, with the highest incentive to be provided for investments in the Hyderabad-Karnataka region. Special industrial zones exclusively for women entrepreneurs would be set up at Harohalli near Kanakapura in Ramanagar district and in Hubli-Dharwad. VAT and CST payment would be converted into long-term interest-free loans (seven to 14 years), depending on the investment and fixed assets of the investor.

To a query on whether the recommendations of the Sarojini Mahishi committee would be linked to the policy, Jayachandra said industries will be told to give preference to Kannadigas during recruitment. They will be asked to fix a quantum of jobs for localites, while recruiting Group ‘C’ and ‘D’ employees. The minister said that he had suggested that while giving permission to big industries a clause be inserted that 20 per cent of auxillary units linked to the industry be given to localites.

Jayachandra said special fiscal incentives will also be provided to Non-Resident Indian Kannadigas to invest in the State.

Industrial zones would be developed on public-private-partnership model and all basic amenities would be made available in industrial areas before allotting them. Jayachandra said 38 manufactured items have been listed in the policy, which the government and its agencies will purchase only from micro, small and medium enterprises.

The minister said that the purchase of land for industries had been made easier with both Houses of the legislature passing the Karnataka Land Reforms and Certain Other Law (Amendment) Bill, 2014. Once rules are framed, it will cut down the process for according permission to buy land for industries from the present 27 stages to eight stages.

The Cabinet also gave its nod to 1,000 micro enterprises in the rural areas with an investment of up to Rs 10 lakh through District Industries Centres in a bid to encourage self-employment among the youth. The Cabinet gave clearance for setting up checkposts and quarantine centres at 44 places touching State boundaries across 18 districts.

The centres will monitor the health of animals entering the State, Jayachandra said. The project will cost the exchequer Rs 20.48 crore.

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