Govt moots Karnataka Investment Planning Authority

The Cabinet on Thursday decided to establish a special purpose vehicle (SPV), Karnataka Investment Planning Authority, to simplify procedures to set up new industrial zones across the state.

Briefing reporters, Law Minister J C Madhuswamy said that the government wanted to develop special investment zones in Tumakuru and Hubballi-Dharwad to facilitate setting up of big industries on a pilot basis.

He added that the Cabinet had approved a Bill that would be tabled in the winter session of the legislature.

The Bill provides for establishment a special investment authority with a mandate to acquire land for setting up investment zones besides providing necessary clearances and approvals from the government.

"The new authority will function under the Karnataka Industrial Areas Development Board (KIADB) and this will also serve as a single window agency to simplify all procedures for industries to be set up in these special investment zones," Madhuswamy said.

The minister stated that the Bill also provided for sharing 30% of tax collected from these special investment zones with the local authorities. This would improve the financial health of the local bodies.

In another decision, the Cabinet will release Rs 931.15 crore to "upgrade and expand" the Karnataka State Wide Area Network (K-SWAN). “Over 1,600 nodes need to be upgraded and our aim is to cover all gram panchayats under this system. This is aimed at providing more reliable and secure network services to government offices by providing WAN and LAN services,” Madhuswamy said.

The Cabinet also cleared Rs 93.92 crore for purchase of 262 ambulances as well as for the maintenance of 369 ambulances that were operating in the state. “According to stipulated norms, the state needs to have 700-plus ambulances. With this procurement, we will be meeting this target,” Madhuswamy said.

Other decisions

* Scrapping of the project development agreement signed in 2010 with the Marg Sri Krishnadevaraya Airport Private Limited, Chennai to build an airport at Ballari due to no progress.

* Cancellation of tenders awarded to a private company to build a high-tech fruits and vegetables market at Byatarayanapura due to no work.

* Land to be leased to Karnataka State Cricket Association to build cricket stadiums at Ballari and Putturu in Dakshina Kannada.

* Increase length of elevated corridor near Varthur by over half a km.

* To set up critical care units at government hospitals in Yadgir and Bagalakot.

* To set up a branch of Kidwai Memorial Institute of Oncology in Mysuru.