Welcomes you to Karnataka

Government of Karnataka

Department of Industries and Commerce

New Industrial Policy

2009-14

Why the New Policy?

GoI enacted MSME Development Act 2006. Redefined Micro, Small and Medium Enterprises.

States are envisaged to provide special encouragement to MSME sector.

Commitment for uniform spread of industries across the State.

Development of sector specific industrial zones.

Necessity for providing stimulus package to overcome the prevailing economic crisis.

Policy to be made more attractive for investors.

Reclassification of taluks as per Dr. D.M. Nanjundappa Report.

“To build prosperous Karnataka

through development of human &

natural resources in a systematic,

scientific & sustainable manner”

Vision

To create enabling environment for robust industrial

growth

To ensure inclusive industrial development in the State

To provide additional employment for about 10 lakh

persons by 2014

To enhance the share of manufacturing sector to the

State’s GDP from 17% to 20% by the end of policy

period

Objectives

Economic Indicators

Growth of GDP in 2007-08 :

India – 8.7%, Karnataka – 6.9%.

Mfg. sector’s share to GSDP is around 17% in last 5 yrs.

Share of Primary sector in GSDP – 19%

Dependence of workforce on Primary sector – 56%.

Secondary sector’s contribution to GSDP - 25%.

Dependence of workforce on Secondary sector– 16%

Policy Measures

Land Acquisition

Simplification of land acquisition procedure

Acquisition of only dry & single crop land

Inventory of surplus / unused Government land for creation of a Land Bank.

Adequate R&R packages to land owners

Make land owners as partner in the Project

A part of developed land to land owners

Reserve sufficient land for Township / attendant facilities

Quality Infrastructure

Develop industrial corridors under SKDCP

Promote sector specific industrial zones for steel,

cement, food processing, IT/BT, automobile,

readymade garments etc.

KIADB to spend Rs.500 cr. for existing infrastracture

SEZ Policy for healthy proliferation of SEZs

Skill / Entrepreneurship Devt.

Skill upgradation in emerging skill sets

Inculcate entrepreneurship qualities through EDPs

Motivation of under-privileged sections

Mentoring support for graduation of units

Organise Karnataka Kaigarika Darshana

Focus on MSME Sector

Attractive package of incentives

Cluster approach for development

Marketing support – price preference

Reservation of 20% land in large indl. areas

Counselling / Mentoring Services

Simplification of procedures

Incentives & Concessions for MSMEs

Performance linked investment promotion subsidy

Interest subsidy for micro mfg. enterprises

Exemption from Electricity Duty

Incentive for Technology Upgradation / Quality Certification

Subsidy for Water Harvesting / Conversation & Energy

Conservation Measures

Incentives & Concessions for MSMEs …

Subsidy for preparation of DPRs.

Exemption from Stamp Duty / Concessional Regn.

Charges

Refund of Land Conversion Fine

Exemption from Entry Tax

Exemption from APMC Cess / Market Fees

Incentives & Concessions (including for larger investments)

Exemption from Stamp Duty/Concessional Regn. Charges

Refund of Land Conversion Fine

Exemption from Entry Tax

Exemption from APMC Cess / Market Fees

Interest free loan on VAT

Anchor unit subsidy

Special incentives in low HDI Districts

Promotion of Exports

To double exports from the current level in 5 years

Support services from VITC & KTPO

Set up Export-Import Offices in Hubli & Mysore

Incentive for obtaining Standardization Certificates for

Exports

Conservation of Scarce Resources

Rational use of resources

Appropriate technology for water conservation

Recycling of water / Waste water treatment

Generation/Utilization of non-conventional energy

sources

Pollution prevention

Focus on Best Practices

Cleaner production techniques

Motivate go-green concept

Thrust on conservation of water

Encourage water / energy audits

Persuasion of CSR for large investors

Reward the best units through awards

Facilitation

Strengthen KUM to provide better facilitation

Effective Single Window Clearance mechanism

DLSWCC to clear proposals of MSME

Strengthen the Guidance Cell at DICs

Publish investors guide / all information in website

Regular Investors’ Meet / Road Shows

Benefit to the State

Additional employment for 10 lakh persons

Generation of additional investment of Rs. 3 lakh crores

Creation of infrastructure across the State

Development of backward regions

Ensuring inclusive development

Contribution to the State’s exchequer through taxes

(approx. Rs. 13,000 Cr. p.a.) against a nominal outflow

for incentives (approx. Rs. 400 Cr. p.a.).

Thank You

SIMPLIFICATION OF LAND ACQUISITION PROCEDURE

• Acquisition Procedure has been simplified by

Inventory of surplus / unused Government for creation of a Land Bank

Adequate R&R packages to land owners

Exemption from Stamp Duty/Concessional Regn. Charges

Waiver of Conversion Fine

Exemption from Entry Tax

Exemption from APMC Cess / Market

Fees

Investment / employment linked capital

subsidy

Interest free loan on VAT

Anchor unit subsidy

Special incentives in low HDI Districts

Appropriate technology for water

conservation

Recycling of water / Waste water

treatment

Thrust on conservation of water

Encourage water / energy audits