A "Compete with China" scheme to take on Chinese made goods and spare parts was announced in the state budget today by Karnataka Chief Minister H D Kumaraswamy, who termed it as an "industrial revolution."
He said a total of eight lakh jobs are expected to be generated in some districts under the scheme, for which government would provide Rs 14,000 crore investment in the coming year.
He said large-scale production of various commodities by China, in great demand the world over, has resulted in solar power goods, electrical lighting goods, bathroom fittings, electrical goods and electronic toys being available even for the common man.
The tremendous development in manufacturing in China in the past two decades has seen goods from that country flooding the Indian market, due to which industries are on the verge verge of closure, he said.
"In line with 'Produce or Perish' we are now requiredto increase our production. With this perspective, I am thinking of implementing the Compete with China scheme," hesaid.
This envisages setting up a "Program Mission Unit" under the leadership of successful entrepreneurs. Spare parts would be manufactured at the village level, assembled at taluk level and malls would be opened to market them, Kumaraswamy said.
The Chief Minister, who also holds the Finance portfolio, outlined the scheme while presenting the Congress-JD(S) coalition government's maiden budget.
Quoting examples of programmes that can be implementedin various districts, based on resources and professional skill available in each area, he said Kalaburagi districtwould be developed as "Bharath Solar District".
"The solar panel, inverters, capacitors and luminators for the production of solar power will be produced only in Kalaburagi district," he said.
Pointing out that the electrical light industryin India is valued at about Rs 46,000 crore, he said Chinese LED lights haveoccupied this market and proposed that manufacturing of household LED lights be developed inChitradurga district.
Other plans included one to develop Hassan district as bathroom floor tiles and sanitary goods manufacturing district and setting up a cluster for manufacture of toys in Koppal district to compete with Chinese mechanized toys.
Noting that 80 per cent of global demand for ICBs and chips are met by Taiwan and that there was a huge demand for ICB chips in India too, he said there are plans to set up a manufacturing unit at Mysuru.
Emphasis will be given to thetextile industry in Ballari district and a mobile phone components unit was planned to be set up at Chikkaballapur, he said
Kumaraswamy saidgovernment planned to invest Rs 2,000 crore in four years to set up a sports and fitness goods unit in Tumakuru district, with an im of creating one lakhjobs.
To manufacture agricultural implements and protection of agro products in Bidar district,government intended to provide Rs 2,000crore capital in the next four years to companies who come forward to manufactureagricultural implements.
To implement these schemes,expert workers trained for six months to two years are needed, for which training schools would be opened in the first phase, Kumaraswamy said.
The budget has provided Rs 500 crore for training this year in seven districts and in the next four years, Rs 2,000 crore would be given in the form of equity share capital to private institutes participating in this industry, he said.
Private institutes would have to invest Rs 3,000crore, the Chief Minister said,adding, there would thus be a total of Rs 5,000 crore investment for each district.
"By this industrial revolution, a total of eight lakh jobs will be generated in each district. An investment of Rs 14,000 crorewill be provided by the state Government inthe coming year," he added.
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