New industrial policy focuses on backward regions, classes

The Siddaramaiah government on Friday unveiled its new industrial policy for 2014-19, which aims to address issues of regional imbalance and social justice by offering attractive incentives and concessions to investors in backward regions and a special package to entrepreneurs belonging to SC,ST, backward classes and minority communities. 

The new policy has brought bittersweet news for industry bodies: It has done away with the age-old trade licence system, and the government has incorporated its decision to allot land for industrial purposes only on lease basis for 99 years lease. 

Investors have been crying foul at the land allotment system, and have been demanding restoration of the earlier system of allotment on lease-cum-sale basis. It is said to be one of the reasons the investors are reluctant to put their money in projects in Karnataka. 

Six zones

The State has been divided into six zones based on average per-capita industrial development and employment. The more backward a zone, the more incentives and concessions investors will get. It is also seen as a move to encourage investors to go beyond Bangalore, especially to the backward regions of north Karnataka. The Siddaramaiah government has reaffirmed its stand on providing social justice, rolling out an “inclusive growth strategy” by offering special packages to the entrepreneurs from underprivileged sections of society. 

Special package

This includes reservation of 22.5 per cent of allottable land in the Karnataka Industrial Areas Development Board (KIADB) areas for SCs and STs. Besides, the investment promotion subsidy to these sections has been enhanced. Women entrepreneurs have also been given a special package. 

Aerospace, machine tools, steel and cement sectors have been given “focused industries” under the policy. These sectors will get enhanced incentives and concessions. 

The policy, released by Siddaramaiah at a function at the Vidhana Soudha, has set a target to achieve 12 per cent industrial growth and attract Rs 5 lakh crore of investment, creating about 15 lakh jobs by 2019.