Need transparency in investors’ information, Basavaraj Bommai tells Nirmala Sitharaman

Bommai told Sitharaman that the Centre had to make policy interventions to boost investments and economic activities

Karnataka Chief Minister Basavaraj Bommai on Monday asked Finance Minister Nirmala Sitharaman for transparency in the way information on investors is shared with states.

Bommai said this at a meeting Sitharaman chaired with chief ministers and finance ministers of various states.

“Transparent mechanism to share leads about investors,” was one of the areas where Bommai sought the Centre’s cooperation, according to a release from his office.

Bommai further told Sitharaman that the Centre had to make policy interventions in several other areas to boost investments and economic activities.

“A clear policy on forest and environmental clearance is required,” Bommai said. He also sought amendments to laws governing urban and rural local bodies to improve infrastructure in places where townships are being developed in special economic zones (SEZ).

Also, Bommai asked the Centre to relax regulations of the Coastal Regulation Zone (CRZ) so that economic activities can be facilitated in coastal areas. “Kalyana Karnataka (formerly Hyderabad-Karnataka) needs additional incentives to attract investment in Karnataka,” he said at the meeting.

The CM sought a direction to banks for financing new business sectors such as electric vehicles and medical technology.

Bommai said a portion of the district mining fund should be given to the state government. “This will help repair damage to other districts' infrastructure by transporting the ore,” he said.

These demands came even as Karnataka is preparing to host its flagship Invest Karnataka summit next year.

At the meeting, Bommai told Sitharaman that Karnataka managed to maintain its lead in economic development despite the Covid-19 pandemic.

“It was brought to the notice of the Union Minister that the state had higher foreign direct investment inflow last year as the state government did not cease during the Covid-19 pandemic and continued to take measures for infrastructure development and to attract investments,” Bommai’s office said.

Bommai said new airports at Shivamogga, Raichur, Vijayapura and Karwar would be operational next year.

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