Karnataka-Investment and
Industrial Policies
Agro
Food Processing Policy 2003
The State Government has taken a number
of initiatives to increase production and productivity in
Agriculture, Horticulture and all other related segments.
Government is convinced that accelerated promotion and development
of food processing industry should be an integral part of
these efforts. The Approach Paper to the National Food Processing
Policy of Govt. of India aims at increasing the processing
level of food products from the existing 2% to 10% within
10 years.
Substantial quantities of afro food
produce ranging from 5% to 40% is lost during harvesting,
transportation, storage and distribution and presently only
around 2% of the total production is processed into value
added products as compared to 50-80% in developed countries.
Technologies available in R&D institutions are to be
effectively tapped and lab to land transfer of the knowledge
base needs to be expedited. it is estimated that Karnataka
has a potential to attract investments of approximately
Rs.10,000 Cr. In the next 10 years in food processing industry.
Export
Promotion Policy (2002 - 2007)
The ongoing process of opening up of
the Indian economy, changing Industrial and trade policies
over the last decade and the formation of WTO have together
given rise to stiff challenges as well as tremendous opportunities
for Indian Industry. While the challenges are the result
of liberalised imports of raw materials, components and
finished products from across the globe in an increasingly
reducing tariff regime, the opportunities arise from the
opening up of the world markets for Indian industry.
Industrial
Policy – 2006-2011 New
In the Government Order dated 15.03.1996
read at (1) above, the State Government had announced a
comprehensive Industrial Policy –1996. The said policy
had extended a package of incentives and concessions for
new investors. This policy came to be modified from time
to time vide the Government Orders dated 31.05.1996, 14-05-1999
and 15-05-1999 respectively read at serial numbers (2) to
(4) above. The liberalized Economic Policy formulated by
the Govt.of India greatly contributed to the rapid industrial
growth in the private sector besides substantial inflow
of capital from abroad in the form of Foreign Direct Investments
(FDIS).
New
Infrastructure Policy – 2007
New
The Government of Karnataka
had come out with the first Infrastructure Policy in
1997. The Infrastructure Policy of 1997 aimed at expanding
and upgrading infrastructure to meet the growing needs
of industrial and agricultural sectors, inviting private
investment and adopting an integrated approach to infrastructure
development. This policy had specific incentives and
concessions for infrastructure projects. However, with
the efflux of time there have been changes in the tax
and stamp duty regime, formulation of Govt. of India’s
Policy on Public-Private-Partnership (PPP) in infrastructure
projects and the concept of Viability Gap Fund (VGF).
In line with these changes, the existing policy needs
to be revised.
Special
Economic Zone Policy
Government of India has introduced the
concept of Special Economic Zones (SEZs) in the year 2000
through a revision in the Export -Import Policy 1997-2002.
SEZs are specifically delineated duty-free
enclaves treated as a foreign territory for the purpose
of industrial, service and trade operations, with exemption
from customs duties and a more liberal regime in respect
of other levies, foreign investment and other transactions,
domestic regulations, restrictions and infrastructure inadequacies
are sought to be eliminated in the SEZs for creating a hassle-free
environment. The SEZ scheme seeks to create a simple and
transparent system and procedures for enhancing productivity
and the case of doing business.
SEZs can be
developed in the public, private or joint sectors, or by
the State Governments. They are expected to promote the
establishment of large, self-contained areas supported by
world class infrastructure oriented towards export production.
Exploiting the full potential of the concept of SEZs would
bring large dividends in terms of economic and industrial
development and the generation of new employment opportunities.
Tourism
Policy 2002-07 New
Karnataka was among the first States
in the country to bring out a progressive Tourism Policy
as early as June 1992. This had the twin objective of promoting
tourism-related activities and enhancing employment and
income-generation among all sections of the society to further
promote tourism in the State. The Government announced an
updated tourism policy with effect from June 1997 for a
period of five years with certain modifications vide Government
Order No. ITY/137/TTM/96 Bangalore dated 4 July 1997.
The above policy generated considerable flow of investment
from the private sector and also led to several other developments
in the tourism sector. Today, the State Government is giving
new thrust to promote tourism in the State. All bona fide
tourism related enterprises are duly recognised and given
special incentives and concessions. Areas that need rapid
development have been identified. Infrastructural facilities
need considerable investment and the private sector is invited
to participate in such areas. They are encouraged to invest
in hotels, beach resorts, eco-friendly resorts, wayside
facilities, adventure/recreation centers like golf courses,
aero sports, amusement parks and other tourism related activities.
The
Millennium Biotech Policy
New
Hon'ble Chief Minister, Mr.
S. M. Krishna in his budget speech for the year 2000-2001
has said,
"While Karnataka is the acknowledged
leader in IT, I would like the State to lead the next revolution
in Biotechnology. Karnataka already has the training and
knowledge base necessary to drive the revolution. We have
the critical mass of biotech companies and the best research
institutions. The immediate challenge is how to nurture
that innovation, promote entrepreneurship and facilitate
effective technology transfer to the end users. I am happy
to announce a Vision Group on biotechnology is being set
up to advise the government on future strategies."
The
Millenium BPO Policy
In India, it is the State of Karnataka
that holds the pre-eminent position in the field of Information
Technology & Biotechnology. In fact, the State is called
the 'Silicon State of India' and Bangalore, its capital,
is referred to as the 'IT Capital of India' as well as the
'Biotech City'.
Karnataka in the recent past has attracted
a spectacular amount of foreign investment. To be precise,
the state has seen at least one new foreign IT Company setting
up shop, every week for the past 150 weeks. The State also
has the enviable record of attracting one new Biotech Company
every month for the last two years.
The
Millennium Biotech Policy 2000
Hon'ble Chief Minister, Mr. S. M.
Krishna in his budget speech for the year 2000-2001 has
said, "While Karnataka is the acknowledged leader
in IT, I would like the State to lead the next revolution
in Biotechnology. Karnataka already has the training
and knowledge base necessary to drive the revolution.
We have the critical mass of biotech companies and the
best research institutions. The immediate challenge
is how to nurture that innovation, promote entrepreneurship
and facilitate effective technology transfer to the end
users. I am happy to announce a Vision Group on
biotechnology is being set up to advise the government
on future strategies."
