Even as trade and industry bodies welcomed the state's new industrial policy (2014-19), they have appealed to the government to set up a proper mechanism for Centre-State coordination to ensure speedy clearances for several projects.
There is a need to fast-track clearances for Chennai-Bangalore-Chitradurga Industrial Corridor and Bangalore-Mumbai Industrial Corridor projects in order to implement these two key important infrastructure corridors, which would play a crucial part in the development of industrial clusters across the corridor, the chambers said.
"We welcome the new industrial policy, especially the government's thrust on attracting investment worth Rs 5 lakh crore and creation of 1.5 million jobs in the next five years. The proposal to raise the subsidy for MSMEs to 100 per cent from 50 per cent is a welcome move," Bangalore Chamber of Industry and Commerce (BCIC) senior vice president Anuj Sharma said.
He also appreciated the amendments to the Karnataka Land Reforms Act to reduce the time taken in obtaining approval for purchase of land under Section 109 and for converting agricultural land for industrial purposes. The government should expedite labour reforms to increase the investment flow into the state.
The new industrial policy gives special thrust to enhance contribution of the manufacturing sector to the state GDP to 20 per cent by 2019 and other incentives, particularly to the MSME sector.
"The policy focuses on job creation, growth of manufacturing sector share in GDP among others. However, the incentive offered need to be benchmarked against other states to ensure the state is not at a loss. The government should aggressively pursue large projects and get them to invest in the state as the downstream benefits of these, particularly in the auto sector, are critical," former BCIC president H V Harish said.
Overall, the BCIC has welcomed the policy for its focus on the MSME and commended the state government for focusing towards the development of Hyderabad-Karnataka region by declaring it as a special economic zone, which was hitherto neglected.
The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) said the new industrial policy would help in inclusive development and growth of industries in the state.
"The creation of quality infrastructure focusing on provision for comprehensive facilities and with a thrust on human resource and skill development and upgradation is a positive step in growth verticals and expected to enhance the industrial growth and also in attracting fresh investments," FKCCI president S Sampathraman said.
The chamber also welcomed reservation of 350 products for exclusive manufacture of MSME and SSI sectors.
"The government's support to set up angel funding schemes to start-up entrepreneurs is expected to result in establishment of industries at a faster pace. The flow of credit to rural entrepreneurs is expected to reduce the rural economy deficit greatly," he said.
Energy projects treated as manufacturing industry and encouragement for carbon auditing is a good gesture and expected to promote renewable energy projects, Sampathraman added.
