Karnataka industrial policy targets Rs 5 lakh crore investment

Karnataka aims to attract investment worth Rs 5 lakh crore in the next five years under a new industry policy unveiled today.
The policy is targetting an industrial growth rate of 12 per cent annually and seeks to enhance the contribution of manufacturing sector to the state GDP from 16.87 per cent to 20 per cent.
The New Industrial Policy for 2014-19 was at a function here released by Karnataka Chief Minister Siddaramaiah who said it will contribute for the economic development and employment generation in the state.
The policy proposed to form at least five industrial areas every year over an area of 5,000 to 8,000 acres, he said.

In order to encourage large investments across the state, the policy has adopted a very liberal location based fiscal incentive package, Siddaramaiah said.
It also proposes net VAT plus CST based interest free loans for a longer duration and higher ceiling limits.

"Anchor industries and focussed sector will get enhanced package with a ceiling limit of 125 per cent of the fixed assets created," he added.
The policy also gives special attention to MSMEs by proposing almost double the fiscal incentives as compared to the previous policy, Siddaramaiah said.
It focuses on encouraging entrepreneurs belonging to SC and STs, minority community, backward classes and ex- servicemen.

Women also have been given special attention to induce them to take up more and more industrial ventures not only for their livelihood but also for providing employment opportunities to others, Siddaramaiah said.
Two exclusive industrial estates and areas for women entrepreneurs and a reservation of five per cent in all the industrial estates/areas for women entrepreneurs had been proposed in the policy.
The policy also provides adequate attention to Hyderabad Karnataka region with a view to create a strong industrial base with equitable allocation of funds for overall development of the region.
It provides for all energy projects including renewable energy projects to be treated as industry and will be eligible for all incentives as any other industry, Siddaramaiah said.

The policy proposes to associate with Union Government in implementing the Chennai-Bangalore-Chitradurga Industrial Corridor (CBCIC) and Bangalore Mumbai Economic Corridor (BMEC) with the help of external assistances from Japan and United Kingdom, he said.