The different district chambers of commerce and industries in Karnataka have demanded that the state government expedite the process of infrastructure development in the state to facilitate more investments in the hinterland.
The associations, under the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), have also submitted a memorandum to Jagadish Shettar, Karnataka minister for rural development and panchayat raj, to resolve the issues faced by many small and medium industries in the state.
“Many central government schemes for infrastructure development have been stuck in the state due to delay in the release of funds by the state government,” J Crasta, president, FKCCI said.
As many of the central government schemes require the state to contribute around 20-30 per cent of the estimated amount, any delay in the release of these funds negatively impacts infrastructure development work, he added.
He also said that the delay in road construction, power deficit and water availability to industries were the major stumbling blocks for the industry.
In the light of global investors meet scheduled to be held on June 3 and June 4, Crasta said that the investment flow should be more into the hinterland than only to Bangalore and adjacent areas.
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“Development in Karnataka should not be Bangalore-centric and the investment flow should be more towards the hinterland. To facilitate more investments, the state has to take care of infrastructure development,” he said.
In addition to issues of infrastructure, the district chambers also raised their concerns on the present tax structure.
“There should be a state taxes advisory body to look into the matter of taxation for state enterprises and the meetings of the body should be held regularly to take stock of the changing dynamics,” he said.
He also asked the state to look into the issue of double taxation and to make the commercial tax consultation committee a vibrant body.
To get rid of the procedural delays for investors, the chamber has urged the state government to make single window agency a statutory body with regular consultation.
It also asked the government to look into the prohibitive cost of land for setting up enterprises and urged it to make the process of land conversion simpler.
Minister of rural development and panchayat raj Jagadish Shettar said that state government would look into these concerns and take appropriate steps in near future.