Industry bodies hail new policy

Apex industry chambers have welcomed the new industrial policy announced here today. Both the Confederation of Indian Industry (CII) and the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) have urged the government to give greater thrust to the small scale industries sector.

"The new industrial policy is an outline of the shape of things to come for the industrial sector in Karnataka," the CII said.

Welcoming the setting up of the 25 industrial clusters in taluks that can support SSI and tiny industrial units in 2007-08 through KSSIDC, the CII stated in a press release that the government in consultation with the industry must devise a public-private partnership (PPP) model towards this cluster approach.

FKCCI said that the government should do something for the revival of the sick SMEs. It also urged the government to formulate a sectorwise policy such as for the development of power, garment, gems and jewellery, auto parts manufacturing among others.

The CII while lauding the move to provide rebates to industries to move out of prime locations in Bangalore city, urged the state to focus on infrastructure development to attract major industries.

It also emphasised the need for a policy and allocation of substantial funds for the technological upgradation across the SME sector as per the SME Bill. The technological upgradation fund is at present not adequate for the SME sector as defined in the SME Development Bill passed by the Parliament in 2006.

The CII stated that technological upgradation should be as much as Rs 50 crore and must be applied to enterprises in all the three zones. If required, the fund can be a joint effort with Sidbi.

"The completion of all textile parks that have been undertaken is a welcome sign. Further, the move to open training institutes for small trade, readymade garments and textile is a positive sign. The identifying and providing of special incentives for backward taluks under zone 1 is also a positive sign of development," CII said.

While welcoming the setting-up of industrial complexes and clusters in various locations across the state, CII has stated that government should initiate the setting up of auto ancillary parks to help generate employment in these identified taluks under zone 1.