Industry's mixed reaction to Karnatakabudget

Industry sources in Mysore have expressed disappointment over the meagre Rs 1,508 crore provision in the state budget presented by Chief Minister D S Sadananda Gowda in the Karnataka Assembly yesterday.

“The sour point in the budget is the provision of a meagre sum of Rs 1,508 crore in the Rs 1,02,742 crore budget,” Industrialist and State Laghu Udyog Bharathi Vice-President Sureshkumar Jain lamented. Reacting to the budget proposals as an Ugadi-eve sweet and sour mixture, in particular relating to those that affect the industry in Karnataka, he expressed his disappointment that the budget made no mention of paying of over Rs 300 crore subsidy to small industries due since 2007-08.

Similarly, the budget failed to say anything about creation of an ‘industrial city authority’ and one time settlement of seed money. Besides, it imposed a burden on industrialists by levying 5 per cent green cess on electricity charges, he criticised.

The industrialist welcomed the proposals relating to formation of a land development bank with a capital of Rs 2,000 crore, allocation of Rs 80 crore for infrastructure development in 17 industrial centres, and creation of 1 million additional jobs in the state.

The proposals to reduce tax on diesel to Rs 16.75 from Rs 18, on raw cotton to 2 per cent from 5 per cent, and chappatis, parotha, surgical footwear and readymade garmers from 15 per cent to 4 per cent and provision of Rs 50 crore for biogas development are the ‘sweet’ ones in the Ugadi-budget, he said.

Jain also welcomed proposals relating to Mysore which include Rs 25 crore for renovation of the Mysore Palace, coming as a centenary-year gift, provision of Rs 2 crore for loans to mobile shop operators, setting up an auto nagar under public-private participation and provision of Rs 2 crore and Rs 5 crore for the establishment of a super-speicality cardiac hospital of the Jayadeva Institute of Cardiovascular Research and Sciences, which is presently running a branch in the crowded K.R.Hospital premises, and Sandesh Bhavan, respectively, in Mysore.