Karnataka's new industrial policy on the anvil

The core group of the Karnataka government to advise it on the broad contours of its new industrial policy which will be announced in April, has begun wide-ranging consultations with various stakeholders and industry groups.

The group is seeking a suggestions on the theme of the policy, its objectives, specific strategies for effective implementation, the main issues need to be addressed, the areas of public-private partnership initiatives that will help industrialisation, role of incentives/concessions in attracting industries, specific steps to boost industrialisation of northern Karnataka and measures to be taken in the HRD area.

The core group is headed by former IAS officer P P Prabhu and has two other members ? MICO joint managing director M Lakshminarayan and professor of economics, ISEC, M R Narayan.

The core group is seeking feedback on a number of issues. These will pertain to the present policy announced in 2001 and if it has facilitated growth and has been instrumental in promoting a congenial atmosphere for industrialisation.

Feedback has also been sought on the positive and beneficial aspects of the policy implemented and not implemented, and if it has facilitated the setting up of new units, securing licences, obtaining clearances, the shortcomings of the policy, difficulties encountered and if the Industry Facilitation Act has enabled simplification of procedure and fast track implementation of projects. The broad framework of the policy which has been announced aims at achieving an economic a growth of 8-9 per cent over the next decade by promoting rapid growth of a market-driven, knowledge-based, efficient and competitive industrial sector.

The focus of the new policy for the first five years of 2006-2011 will be to encourage the rapid growth of sectors and markets in which Karnataka has strategic advantages, enhance value addition in projects, provide industry access to high quality infrastructure and fully tap the potential of the small scale sector.

The strategy includes forging partnerships with the private sector, enhance public and private expenditure, give impetus to technology upgradation and radically restructure public sector undertakings.

The policy framework provides for assistance for technology upgradation.

The framework calls for establishing a corpus called 'Technology Upgradation Fund', promotion of business incubators, establishment of science and technology entrepreneurs parks.

Infrastructure support including the establishment of an infrastructure development fund with an initial corpus of Rs 100 crore, establishment of industrial townships, development of sector-specificindustry parks; and, human resource development.

The other initiatives comprise deregulation of the business environment, marketing assistance for SSI sector and streamlining of the single window mechanism.

In addition, a string of incentives and concessions also form part of the policy framework.