Ailing mining-based industries to be treated as 'focused industries'

The State government has in its new industrial policy-2014-19 declared that it would treat the ailing mining-based industries as “focused industries” and provide necessary assistance to implement the projects that have remained stuck for years.

Chief Minister Siddaramaiah, who released the policy, said he has directed the officials to soon come out with a clear mining policy and resolve all issues concerning the mining-related industries. 

“The State is aware of the fact that many projects, mainly the mineral-based industries which have been approved in the earlier Global Investors Meet and not implemented for want of infrastructure support and a clear policy,” he said.

The iron and steel sector had attracted the highest investment in the two global investors’ meets organised by the previous BJP government. But most of those investment proposals have remained on paper due to the mining scam. Though Siddaramaiah did not directly attribute the problem to the scam and the previous BJP regime, he subtly mentioned it by blaming the “lack of clear policy.”

Identified for acquisition

The government has, however, continued with the land bank scheme introduced by the previous government. About 1.15 lakh acres have been identified for acquisition. Of this, about 50,887 acres have been notified for acquisition and about 21,486 acres have been already acquired, the new policy stated. The Congress, which was in the opposition, had vehemently opposed the land bank scheme and demanded that the then government should denotify lands belonging to farmers. Incidentally, Siddaramaiah was the then leader of the Opposition.

Tax-related incentives

For mega investments, different packages of incentives and concessions have been offered based on their locations and investments. 

Tax-related incentives proposed in the policy are based on net Value Added Tax and Central Sales Tax basis. The policy has offered the incentive of interest-free loan of 40 per cent to 100 per cent of net VAT plus CST with the maximum limit of 100 per cent of the value of fixed assets for seven to 14 years period, depending on the zone and investment.

The policy has given a special focus on Micro, Small and Medium Enterprises (MSME). As many as 20 per cent of allotable land will be reserved for MSMEs. 

Incentives and concessions offered are almost double the quantum provided in the earlier policy (2009-14). 

It has proposed to encourage Non-Resident Kannadigas (NRKs) to invest in the State with an early seed capital fund. It also proposes to provide angel funding for start-ups in collaboration with NRI companies and organisations. An exclusive NRK promotion cell will be established, the policy stated.