Special funding to formalise jobs in unorganised sector: Bommai

Chief Minister Basavaraj Bommai on Sunday said his government will provide special financing to move workers from the unorganised sector into the mainstream, a key initiative to formalise jobs in the state.

Bommai was speaking at the Nava Karnataka Summit curated by DH Brandspot and PV Brandspot.

“I’ve constituted an Authority and Board to bring those in the unorganised sector to the organised sector by giving them job security, social security and education for children. For the first time, we’ll have special financing for that,” Bommai said.

“More jobs have to be created. That’s the key for Nava Karnataka,” Bommai asserted.

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Karnataka is the first state to get a jobs report, Bommai said. The report follows an “authentic basis” to calculate employment by looking at EPFO and ESI enrolments, he said.

“According to this report, Karnataka has 25 per cent of workforce in the formal sector. We’re above national average of 20 per cent,” Bommai said. “Unemployment is 4.7 per cent nationally. It is 2.4 per cent in Karnataka,” he said, adding that Karnataka is on the right path.

Karnataka’s GDP is growing at 9 per cent and per-capita income has risen from ₹2.47 lakh to ₹3.42 lakh, Bommai said.

Bommai also said Karnataka is the first state to get an Employment Policy. “Economic development revolves around number of people engaged in jobs. For the first time, under the employment policy, we will give incentives to industries based on the number of jobs created,” he said.

The CM stressed that Nava Karnataka cannot be built without people of the state. “Those at the bottom of the pyramid are the game-changers. The common man, farmer, worker, women and youth are at the centre of Nava Karnataka,” Bommai said.

Aircraft manufacturing

Bommai revealed that his government is a few months away from “clicking a deal” to start an aircraft manufacturing unit in Karnataka.

“There are already companies manufacturing parts required for the engine and turbine of aircraft. Apart from commercially-known companies like Boeing and Airbus, there are other technologically strong companies that have a presence in the state,” Bommai said.

“My dream for Nava Karnataka is, why not have an aircraft manufacturing unit? Talks are on and in 4-5 months, we can clinch a deal,” Bommai said.

The CM also revealed that his government will approve a scheme similar to the PM-MITRA to establish textile units in the cotton-growing areas of Vijayapura and Raichur.