Towards building a robust industrialised economy in Karnataka

Bengaluru, Dec 26 (IANS) We have the vision and passion to work towards our holistic goals that are set for 2022. Our ministry is dedicated to meeting the goals of building a robust industrialised economy in Karnataka that will be a benchmark for other states in the country.

The objective is to attract investments worth Rs 5 lakh crore and to create employment opportunities for 20 lakh people in the next five years. Karnataka released ESDM special incentives package intending to foster high growth for the ESDM industry and attain the following goals to create 20 lakh new jobs in the ESDM industry by 2025. The government plans to keep land ready ahead of the flagship Global Investors Meet scheduled for November 2022.

The Textile and Garment Policy 2019-24 aims to generate 5 lakh new employment and it is expected to attract investment worth Rs 10,000 crore.

Karnataka has updated its EV policy intending to attract Rs 31,000 crore investment and create employment opportunities for 55,000 persons both from the supply and demand side.

Karnataka has released E-R&D (Engineering Research & Development) policy 2021-26 to enable the state to contribute about 40-45 per cent to India's E-R and D in 5 years; and to create an additional 1.5 lakh new jobs (direct and indirect) in the E-R and D sector in the next 5 years.

From the past 2 years, we have attracted Rs 78,264.25 crore investment and 1,89,351 employment. Ours is a policy-driven ecosystem with policies covering all major verticals of the economy of Karnataka.

Karnataka released Industrial Policy 2020-25 in Aug-2020, providing further thrust to key areas such as - Industry 4.0, advanced manufacturing, R and D - aimed at becoming an integral part of the global value chain.

The policy will focus on the development of key sectors such as automobiles and auto components, pharmaceutical and medical devices, engineering, and machine tools, knowledge-based industries, logistics, renewable energy, aerospace and defence, and electric vehicles.

Through Affidavit Based Clearance (ABC) system, we have ensured that any approved project can start the next day without waiting for any downstream approvals. With this amendment, investors are not required to obtain approvals/clearances from different government agencies, for 3 years or until commercial operations begin.

Meanwhile, we are planning to include ITeS and Logistics as part of Affidavit Based Clearance. We are planning to introduce a common lease period of 10 years irrespective of the size of the land. We are also introducing an Abridgement clause wherein if the project is commenced before the lease period, a sale deed of land would be made in favour of the company on commencement.

We will also be bringing an amendment to the KIADB Act concerning acquisition and compensation as per the central govt Act. Karnataka is planning to release the updated Aerospace and Defence Policy 2021-26 to attract Rs 45,000 crore investment and generate additional employment of 60,000 persons.

Biofuel policy is at drafting stage in line with national policy and ethanol blending program.

Industrial Infrastructure:

Plug and Play Infrastructure is one of the key requirements for investors especially global investors under the Govt of India PLI scheme, hence we are striving to build a robust industrial ecosystem.

Aerospace is developing the first large plug-and-play industrial park in Narsapura (near Bangalore) in over 60+ acres to develop a 1.5 mn sq ft built-up area. Multiple clusters are being developed in the state -- FMCG cluster in Dharwad with a special incentive package, CEDG (Consumer Electronics and Durable Goods) cluster in Hubli, Pharma Park in Yadgir, Toy cluster in Koppal, Plastic Park in Mangalore etc.

Karnataka is also developing a 255 acre toys cluster in Koppal in partnership with M/s Aequs at an investment of Rs 1,500 crore to generate 25,000 jobs. Karnataka is also setting up a dedicated EV cluster in Ramanagara, only 50 km from Bangalore.

As part of the Government of India pilot initiative, we are in the process of establishing Export Development Centres at five districts viz, Shivamogga, Hubballi-Dharwad, Bidar, Ramanagar, and Mysuru. We are planning to organise Global Investors Meet 2022 in November 2022 to attract global investment to the state.

Industrial Park in each district:

The Department of Large Industries has come up with an industrial park in each district like Pharma Park in Yadgir, Textile Park at Kalaburgi, Jewellery Park, IT Park at Hubli-Dharwad and Tumkur.

The state government has agreed to establish an industrial township on the Bangalore-Mumbai and Bangalore-Chennai corridors. These industrial corridors were announced in the budget. An estimated investment of Rs 10,000 crore is intended to attract private investment. The creation of these townships is expected to create five lakh jobs.

The government is planning to reserve 10 to 15 per cent of its industrial area for residential purposes. Plans are afoot to provide all the basic amenities to the public/its employees including schools, colleges, health centres, commercial complexes, parks etc.

Under the concept of walk-to-work, the department has planned to provide all necessary facilities to people living in industrial areas. The purpose of the government is to save time and facilitate efficiency in work.

There are ample opportunities for setting up industries in the northern part of Karnataka, especially agro-based, textile, and food processing units. We believe all these efforts and unique opportunities will add value and fillip to the state's economy.