1.0 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."
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).
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.
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.
1.1 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'.
1.2 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.
1.1 To accord
primacy for the growth of Information Technology Industry
in the State; to accelerate the use of Information Technology
at the Government level with a view of providing better
services to the citizens of the State; improve productivity
and efficiency of Government services; improve revenue
and tax collections; plug leakages in revenue and tax
collections; hasten the process of decision making at
the Government level and provide an efficient and transparent
tool for monitoring implementation of various Government
supported Programmes and Schemes.
1.0 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."
It is considered necessary to formulate a general
policy on infrastructure for the following reasons:
To demonstrate that the Government
recognises the crucial role played by infrastructure
in economic development and that it accords the
highest priority to infrastructure development;
To unambiguously declare to
potential investors the Government's commitment
to encouraging private investment in infrastructure
in the State;
To demonstrate that the Government
recognises that a co-ordinated and integrated
approach to infrastructure development is necessary;
To provide guidelines to individual
departments and expedite the investment process
for infrastructure projects in different sectors.
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.
