New policy to offer sops for industries in Karnataka

The government’s new industrial policy will offer special concessions, incentives, and subsidies to attract investments to backward regions of north Karnataka, Industries Minister Jagadish Shettar said Wednesday.

Shettar was speaking during a phone-in event organised by Prajavani, the sister publication of DH.

“The term of existing Industrial Policy will expire this year and so we are coming out with a new one. Some concessions and subsidies will be of help in drawing more industries to north Karnataka. So, we are working in that direction,” Shettar said, while answering several phone calls from citizens demanding industrial activity in Kalyana Karnataka and other northern parts of the state.

The government is also working out the modalities to ensure more and more industrial jobs go to locals in line with recommendations of the Sarojini Mahishi report. “We’re thinking seriously on this,” Shettar said.

“There’s demand from everywhere for locals to get more jobs. Usually, locals get the ‘C’ and ‘D’ group jobs, but they lose out on technical and other higher-grade jobs. If there are locals who are capable, they should be given preference. I’ve stressed on this and directions have been issued,” he said.

The former chief minister asserted that the economic slowdown was temporary. “It’s not in Karnataka or India alone, but there’s a slowdown world over. The auto and realty sectors have been hit. But the Centre has announced some measures, such as 10% tax cut for corporates. All this will show results going forward and things will improve, industries will come and jobs will be created,” he said.

A big challenge Karnataka faces in attracting industries is the high land prices, Commerce & Industries Secretary Gaurav Gupta said. “Nowhere in the state will you get land for Rs 1 lakh per acre. Farmers won’t give their land for anything less than Rs 20 lakh. So, we aren’t able to give land to industries below Rs 40 lakh,” he said.

The neighbouring Andhra Pradesh, Gupta pointed out, wooed industries aggressively by offering land at throwaway prices, if not for free in some cases. “The new government there wants to review these incentives as they are not sustainable,” he said.

Another concern for the government is that banks had seen a dip in industrial lending. “There are problems. In the last two years, bank loans have come down. We need to see how this can be improved,” Gupta said.