The government will acquire about 150 acres land for the proposed new industrial park, Murugesh Nirani, minister for major and medium industries said.

Addressing members of Karnataka Small Scale Industries Association (Kassia) after inaugurating the Kassia Udyog Bhavan here on Monday, he said it has been proposed to develop small industries park at a place where most of the basic raw materials are available.

He said the state is considering to promote cement units at Gulbarga and Chitradurga, food processing units at Bagalkote and Shimoga, automobile and steel units in Bellary.

Similarly, the IT and BT sector will be encouraged to go out of Bangalore and set up units in Belgaum and Hubli, he said adding that the government will facilitate all the relevant documents and clearances to small scale units at one location. This will be included in the new industrial policy of the state, he said.

Small Scale Industries minister Venkataramanappa, who released Kassia's industrial directory, said the government will encourage setting up of small scale units outside Bangalore and for such units provide all necessary amenities and facilities.

M C R Shetty, Kassia President demanded the state government to restore the interest subsidy scheme to the extent of 4 per cent in order to accelerate the process of modernization of the small industry sector in the state.

"The state government had earlier operated an interest subsidy scheme for modernization of small industries which was very useful. Although the Central government has introduced a credit linked capital subsidy scheme, it does not carry interest subsidy which is very much essential for modernisation," he said.