The Federation of Karnataka Chambers of Commerce & Industry has identified the following sectors to be included in the election manifesto of political parties.
1) Infrastructure:
For the Trade and Industries to prosper it is necessary for the Government to invest in Infrastructure Development.
The Urban Infrastructure developments are required in the following areas:
· Power:
There is a need to augment the Power in Generation, Transmission and Distribution. In this connection KPCL should speed up setting of 700Mw Bidadi Gas Plant. Further necessary assistance be given for completion of laying the gas pipeline from Magadi to Bidadi. Also KPCL should finalise MoU for the supply of gas to the Bidadi Plant.
However energy sector will be affected by the increased subsidy being granted to the IP sets. The cost of about Rs. 5000 crore being the subsidy cost will affect the overall financial position of the State. Hence it is necessary to remedy the situation by the following.
· Universal Metering of all IP sets and Monitoring the Power Consumed by the IP sets.
- Reduction in the T & D losses.
- Rectifying all unauthorized connections.
- Replacing all old pump sets.
The industrial sector requires special attention by the ESCOMS for supply of uninterrupted quality power. Government should ensure that the power sector gets the required allocation of funds as requested.
· Water Supply:
Need to improve the infrastructure for laying the pipelines and service delivery so as to provide portable drinking water to the cities.
- Traffic and Transportation:
There is an urgent need for repairing, upgrading and development of roads in all the cities including Bangalore. The transportation system and traffic management requires specific attention. The Bangalore metro requires all assistance to speed up the project.
· Development of tier 2 and tier 3 cities.
2) Energy Sector:
Bangalore city being the major hub of Industrial, Commercial centre with a huge population requires uninterrupted quality power for all its activities. It is heartening to note that additional power to the extent of 2500Mw is being added to the existing 6500Mw by KPCL with the setting up of 2 units of 800Mw at Raichur and 700Mw at Bellary.
3) Priority for Solar Energy
Since Karnataka State has sunshine for around 265 days in a year vital importance should be given for Solar Energy in the coastal belt.
4) Tourism Infrastructure:
Tourism is one of the major areas of growth which requires substantial assistance. Infrastructure development of the Tourism Sector should be the major thrust of the Government.
The broad infrastructural facilities required are:
Air connectivity:
Most of the major cities of Karnataka like Mysore, Belgaum, Hubli/Dharward require proper Air connectivity to boost Tourism.
Reopening of HAL for short haul transport for Southern State connectivity.
Rail connectivity:
Train services to Mangalore and Hyderabad Via Bangalore
Train from Coastal Karnataka to Malabar region of Kerala
Extending Hubli Solapur passenger train to Wadi junction which will provide direct connection between Hubli and Gulbarga
Direct train connectivity between Ankola- Hubli, Haveri-Sirsi, Talaguppa and Honnavar
Road connectivity:
Proper roads should be laid to all the major tourist destination and attractions so as to enable smooth travel by road. The Transport Department should ensure quality buses in sufficient number are available for the tourist.
5) Civic Administration:
a. There is an urgent need to put up and maintain proper washrooms at the tourist destinations.
b. Proper Rest houses, Dormitories, Cafeteria, Restaurants and hotels should be made available at all these places.
c. Tourist reception centers should be set up at major tourist destinations to guide and advice the tourist.
6) Industry
· Proposal to set up Industrial townships which is a long pending demand should be immediately approved.
· To encourage Private Public Partnership in developing Industrial Estates providing at least 1000 readymade sheds for MSMEs Skill training centres in all industrial sectors should be given priority
- Land at concessional rates should be earmarked for MSMEs
- Emphasis on Cluster Development through Public Private Partnership (PPP) mode will give a fillip to small and medium food processing units.
- Provision of tax concession for goods procured and traded within Karnataka
- Outstanding Subsidies with Central/State Government to be considered as Bank Guarantee against Credit Facility
- There is regional disparity in terms of income generated, welfare and inclusive growth when it comes to the regions of North Karnataka.
- Tax concession should be extended to all new entrepreneurs irrespective of areas.
- Abolition of Trade License
- Government should start private industrial estates as there are only 5 to 8 percent government industrial estates and the private industrial estates constitute 92 percent
- Establishing Export Processing Zones(EPZs) and logistic support to exporters will also give a boost to exporters
To create Industrial Corridors between
· Doddballapur and Chikballapur
· Chikkballapur and Devanahalli
· Hubli and Dharwad
· Mysore and Hassan
· Mysore and Bangalore
· Hoskote and Kolar
To create a New Bangalore in the outskirts of the City with all modern amenities in order to attract Industries.
7) Taxes
· Formulate suitable policies in consultation with trade and industry forums to support economic activities.
· Abolish entry tax/ or reduce entry tax on diesel, petrol, machineries, spare parts and accessories.
· Activate state tax advisory boards to guide towards reforms and revenue generation.
· Reduce age limit for payment of professional tax from the present 65 years to 60 years to support senior citizens.
· Provide updated equipments to improve e-governance in the commercial tax department.
· Time limit for tax payer services to 7 working days under Sakala Scheme.
· Uniformity in Property Taxation.
8) Agriculture Sector
Agricultural loans to farmers at one percent per annum through cooperative societies thereby ensuring that loans are used only for agricultural purposes.
9) Handloom & Textiles
Traditional Handloom & Textiles industry should be propped up and export-oriented Special Economic Zones including small enterprises should be set up.
10) Information & Technology
Enhancing research & development capability in the IT sector.
11 ) Land acquisition
Land acquisition is a significant issue hampering the industrial growth in Karnataka. This should be left between the buyer and the seller of the land and the State Government should facilitate speedy and transparent transactions. The capital cost of running the Industry is high. There is need for a change in the Land Revenue Act which had become a hurdle for the development of Industry. In today’s scenario one could not go and buy agricultural land. In this endeavour sections 79 A and B should be amended. There should be deemed conversion of agricultural land to Industry otherwise expansion of Industry would not take place.
12 ) Political Stability
Political stability is the need of the hour as this is a prerequisite for growth and development of the State and also in order to lure private investors. Added to this there is a need for transparency in policies and assuring protection to whistle blowers, strengthening the Lok Ayukta, incentivize industries promoting women employees and provide security to women folk.
FKCCI feels that the above issues warrant immediate attention and there is a need for a political will and desire to implement the same. The Industry is with the Government and it would spare no efforts to partake in the developmental efforts of the State. Industry cannot function in isolation. Both the Government and the Industry have to join hands together for speedy economic development of the State.
