Sixteen companies, including 10 food processing units, signed a memorandum of understanding with the state government to set up their units at the newly formed fast-moving consumer goods (FMCG) manufacturing cluster established at Mummigatti in Dharwad district on
Friday.
The Dharwad unit will be the first such cluster in the south India that would manufacture daily need products such as soaps, shampoos, toothpaste, skin and hair care products and instant food among others.
The companies, over the next five years, have assured of investing Rs 1,275 crore and providing direct employment to over 9,100 people.
Speaking after inaugurating a programme Chief Minister Basavaraj Bommai said the cluster, which was announced in the 2020-21 budget, was stuck in the pipeline for two years over the incentives. The prospective companies will get a capital investment subsidy of 20% of the value of fixed assets if they invest more than Rs 25 crore. The companies will also get performance-linked incentives of 3% on GST.
He said the FMCG will boost the economy of not just north Karnataka but the entire country.
Bommai also said his Cabinet has already sent the bill for setting up Special Investment Region to the law committee and soon will be implemented. This will further boost state’s development.
Published 28 October 2022, 17:09 IST