Bangalore, October 22, 2014 – Sri. S. Sampathraman, president, FKCCI reacting to the launch of the New Industrial Policy 2014-19 has welcomed the policy as most progressive and a key driver of employment and innovation with a clear direction in making Karnataka the brand propelling and to be the key state in the country scaling growth to new horizons. The policy unveiled has innovative features that will make the state a leader in the country.
He said attracting investment is dependent on providing the right environment to run a business efficiently. Administrative and procedural issues which result from regulatory and institutional arrangements play an important role in attracting investments and the simplification procedures like e-filing and status on online are some of the good features. The policy unveiled has come at the right time considering the ‘Make in India’ concept of the Central Government.
The assurance from the Chief Minister that he is industry friendly has sent the right signals to investors in the State and abroad. The policy aims at holistic development of the State and looks beyond Bangalore with equitable distribution of industries all over State.
The growth projected at 12% looks achievable considering the State as the investment destination followed by creation of new employment is a industry friendly step as it benefits the creation of wealth and employment.
The immediate necessity of provision of creation of quality infrastructure is relevant considering the current demand and is a positive step ushering in attracting fresh investments.
The declaration of large industrial areas and estates in townships is expected to ease the congestion and the development of the same under PPP mode is unique leading to faster growth pace.
The focus on sector industries development as public utilities is a booster much awaited for the growth of the industry in the state.
The constitution of MSME facilitation councils is appreciated as the same is expected to meet the long demand of the trade fraternity.
Reduction of road tax and registration tax in order to encourage manufacture and use of green hybrid and electrical vehicles is expected to move towards the concept of ‘GREEN ENVIORNMENT’ is a fresh buoyant idea in combating the pollution.
The need to consider all the power projects, including renewable energy, as manufacturing industries is expected to give a fillip to renewable energy sector.
The special emphasis to increase the capacity utilization of ports in the state is expected to boost the export trade opportunities and making the ports thereby as the gate way to the world.
The establishment of knowledge corridors and the proposed offer to non-resident Kannadiagas to invest in state is welcome as the same is expected to bring in the overseas fund for the development.
The tax related incentives for mega investments and the incentive of interest free loans in the form of retention of VAT collected for 10 years, exemptions in stamp duty, entry tax, shows the keenness of the government to revive investments in the state. All industry subsidies have been increased substantially. There is a separate policy for MSMEs.
But, land prices are higher compared to other states. This increases cost of doing business. 99 years lease deed needs major amendments which the Additional Chief Secretary has promised to do. MSME should get land upto 2 acres on ‘Lease cum Sale’ basis.
The proposal to abolish trade license as promised by the Chief Minister is a welcome measure. Total abolition needs to be considered for all Industries and Trade covered by Factories Act and Shop & Establishments Act.
The policy pronouncements made by the Hon’ble Chief Minister is in tune with the growth agenda in placing the state in the top investment destinations in the country. Much remains to seen on the process of implementation as rightly said by Hon’ble Minister S.R.Patil. CCI Newswire