22.5 pc land in KIADB areas for SC/ST bizmen

The State Budget offered little to industries and entrepreneurs in terms of major incentives. Chief Minister Siddaramaiah said the government, under the new industrial policy, would pursue reservations, both caste and sectoral, in industrial areas developed by the Karnataka Industrial Areas Development Board (KIADB).

In KIADB areas, 22.5 per cent of land will be reserved for SC/STs, 20 per cent for Medium, Small and Micro Enterprises (MSME) and five per cent each for women and minority entrepreneurs.

The chief minister also announced an additional subsidy of Rs 15-35 lakh for SC/ST entrepreneurs over and above the investment promotion subsidies. There is also budgetary allocation to upgrade existing industrial areas and develop infrastructure in new ones. The government has allocated Rs 100 crore for the purpose.

Shortage of sand for construction has prompted the government to announce a subsidy on interest for loans to set up manufactured sand units in the State. It also announced a 50-per cent subsidy on interest on loans for setting up m-sand units. It also started an alternative approach to manufacture sand, bricks and other useful building material by setting up units to recycle demolished building material. The units will be encouraged mainly in Bengaluru and Hubballi-Dharwad under Public Private Partnership (PPP) model.

On the mining front, the budget talks about auctioning iron ore in a transparent manner. Siddaramaiah, in the budget speech, said Rs 20 crore had been allocated for estimating iron ore reserves in 35 mining pits. The Mineral Exploration Corporation Ltd (MECL) will carryout the estimation.

Besides, the budget proposed to develop the Bengaluru-Mysuru Economic Corridor with three identified industrial nodes to continue development along National Highway 4 over an area of 10,000 acres in the next five years.