Karnataka offers sops to lure investors beyond Bengaluru

 

Industries that set up shop in backward areas may soon be given a capital subsidy up 50% of the project cost and seven years time to set up their units.With industrial land becoming dearer in and around Bengaluru, the Karnataka government is set to offer a slew of sops and services to lure major industries beyond the state’s capital.

The government has asked the Karnataka Industrial Areas Development Board (KIADB) to focus on acquiring dry land in backward districts rather than urban centers to encourage investors to look beyond cities.

“The farther an investor moves from Bengaluru, the better the sops and facilities will be,“ said industries minister RV Deshpande. Ahead of the Invest Karnataka 2016 global investors meet to be held in February , the government has come out with a list of incentives and concessions for investors in 21 most backward taluks as listed by the high-powered committee headed by DM Nanjundappa, set up to study regional imbalances.

The committee had identified 114 of the 175 ta luks as backward on 35 indicators and categorized 21 taluks -most of them in the Hyderabad-Karnatak region -as most backward based on average per capita investment and employment. “In addition to rebates and tax exemptions as per our industrial policy 2014-2019, the investors are expected to get good infrastructure facilities besides a capital subsidy up 50% of the project cost and land at reasonable rates,“ said Siddalingappa B Pujari, deputy director, Karnataka Udyog Mitra.

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Investors and experts council to guide Karnataka on economy and industry

The state government on Wednesday announced that the government will set up a vision group of industrialists, investors and stakeholders and act as an advisory body to guide the government in matters of the state’s economy, industry an policy.

Chief minister Siddaramaiah said the group will work in tandem with the industry needs and requirements for easing the business policies and cater to their needs.

The announcement of the vision group was made by the CM at the launch of the Invest Karnataka 2016 logo.

Siddaramaiah emphasised that the State is looking at attracting Rs 5 Lakh Crore and provide employment to 15 Lakh people in the next five years, keeping in line with the new Industrial Policy of 2014-2019.

Siddaramaiah assured the industry honchos and captains that the State will provide an ease in doing business in Karnataka.

“As part of this process, the department is looking to form consultative committees for each sector,” he said.

Earlier, Minister for Industries and Tourism,R V Deshpande said the government will unveil two brand new policies for the Automobile and Agro Food Processing industries in the coming months.

Deshpande said that the government will have consultation sessions on these matters before unveiling the policies.

“The automobile policy needs to be looked at afresh, while the agro food processing policy will be looked at with a vision to be beneficial for the farmers in the State and the end consumers of his or her products,” said the minister.

Source : Times of India

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