The Federation of Karnataka Chambers of Commerce and Industries has put forth a slew of demands such as industrial townships, improving banking services and land bank to boost industrial activities in the state.
Addressing a press conference, the FKCCI president C R Janardhana said the government of India made an industrial policy in 1993 where the emphasis was laid on setting up industrial townships.
"However, no township has come up except for Electronic City, despite the cabinet approval for it. We have been demanding it," he told reporters.
If these townships come up, 60 per cent of the tax will go to village panchayats and rest will be utilised for industries for industrials development.
"I pray to you (government) that industrial township is a must for industrial development, without which no industrial development can take place in this state," he added.
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Speaking about the amalgamation of banks, the FKCCI president said the move was done to reduce expenses and minimise the staff but the services have been very poor.
He lamented that it takes 15 days to open a letter of credit.
Janardhana appealed to the government to extend the date of declaring MSMEs, non performing assets from 90 days to 180 days.
"Madam (Finance Minister Nirmala Sitharaman) has agreed that up to March 2020, government will not declare anybody as NPA. I request the government that after March 2020, the 180 days norm should continue," said the FKCCI president.
He also demanded that the minimum wages in Karnataka should be lowered except for Bengaluru as the low minimum wages in the neighbouring states may force the industries here to migrate there.
On the occasion, the FKCCI president released a report, 'Economic Slowdown in India: Causes and Consequences.'
On the occasion, the FKCCI president released a report, 'Economic Slowdown in India: Causes and Consequences.'
The report analysed the status of various sectors and gave solutions and suggestions to combat the sluggishness in the economy.
The recommendations comprise short-term, medium term and long-term measures.
In the short-term measure, the FKCCI recommended extensive investment, reforming labour laws, tax regime, setting up a special organisation for infrastructure funding and reforming Real Estate Regulatory Authority (RERA).
In the medium term, FKCCI favoured improving the success rate of the start-ups, targeting slowdown at state level, large scale government spending and tax reduction, lowering interest rates, fiscal discipline to check current account deficit, increasing tax slabs and ease of doing business.
As long-term measures, the Federation has suggested the overall expansionary monetary policy, public sector investment, increasing disposable income, increasing consumption, land reforms, grievance redressal, attracting NRI deposits and upgrading the medium, small and micro enterprises.
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