Industry bodies in Karnataka have urged the government to give top priority to infrastructure development for trade and industry to prosper. The state should also concentrate on urban infrastructure projects like water supply, public health and power generation, they said. In a pre-Budget memorandum submitted to the government, Federation of Karnataka Chambers of Commerce & Industry said the government should to lay proper pipelines and services to provide portable drinking water to the cities. It urged the government to upgrade and develop roads in all the cities and the transportation system.
The body also wanted the government to solve the garbage disposal issue in the cities, especially in Bangalore, which is affecting the health of the people and also trade and commerce. “It is heartening to note that additional power to the extent of 2,500 Mw is being added to the existing 6,500 Mw by the KPCL with the setting up of 2 units of 800 Mw at Raichur and 700 Mw at Bellary. However, the energy sector will be affected by the increased subsidy being granted to the IP sets. The cost of about Rs 5,000 crore being the subsidy will affect the overall financial position of the state,” FKCCI president Shiva Shanmugam said.
To tackle the power crisis in the state, FKCCI said the government should focus on solar power generation. “The state has sunshine for around 265 days in a year so vital importance should be given to solar energy.” Other major demands include setting up of skill training centres in all industrial sectors, provision of tax concession for goods procured and traded within Karnataka, outstanding subsidies with central/state government to be considered as bank guarantee against credit facility and withdrawal of the 0.5 per cent hike in VAT made effective from August last year. The Bangalore Chamber of Industry and Commerce (BCIC), on the other hand, wants the government to bring the stamp duty under VAT. KR Girish, past president, BCIC, said, “Providing of set-off of stamp duty paid in respect of the immovable properties under the VAT principle in the real estate sector is a novel method and if implemented would be the first of its kind in the country.”
In another significant demand for industrial growth, FKCCI suggested creation of industrial corridors between towns like Doddballapur and Chikballapur, Hubli and Dharwad, Chikballapur and Devanahalli, and Mysore and Bangalore. BCIC also sought an amendment to the law relating to procedural issues such as claim of discounts, time limits for availment of input tax credits, filing of revised returns, uniformity in concluding assessments, e-governance and grant of refunds in a time-bound manner.
It also demanded government’s attention on issues of taxation.