Aerospace, steel: Full speed ahead

BENGALURU: The state government plans to launch a policy to encourage 3-D printers along with its support to the manufacturing sector as part of a long-term initiative to achieve an industrial growth rate of 12 per cent annually.

Chief Minister Siddaramaiah, who unveiled the ambitious new industrial policy for 2014-19, said his government intends to attract investments to the tune of '5 lakh crores over the next five years.

The government proposes to carve at least five industrial areas every year over an area of 5,000 to 8,000 acres.

In order to encourage large investments across Karnataka, the new policy envisages a very liberal location-based fiscal incentive package, he added.  Two exclusive industrial estates and areas for women entrepreneurs and a reservation of five per cent in all industrial estates for women entrepreneurs, figure among other initiatives listed in the policy.  

After earning the tag of IT and Knowledge hub, Karnataka has now turned its focus to Aerospace, the automotive sector, machine tools, cement and steel while planning to bring out a policy to encourage 3-D printing, which is a new concept in manufacturing.

The new Industrial Policy for 2014-2019, which was released here on Friday also proposes to abolish trade licence for all industries, while proposing to declare large industrial areas in Peenya, Mysore, Bommasandra, Belgaum and Hubli as Industrial Townships, to be managed by industrialists.

The government has also proposed to set up Regional Micro and small Enterprises Facilitation Councils in Mysore, Belgaum and Gulbarga under regional commissioners.

Aiming at 12% industrial growth in the next five years, the policy proposes to form at least five industrial areas every year over an area of 5000 to 8000 acres through KIADB. Even the private partnership through PPP model will be encouraged.

In a view to reduce air pollution and encourage manufacture of green Hybrid and Electrical Vehicles, the government has decided to reduce road tax, registration tax as indirect incentives.

Targeting large industries with investment between Rs 10 crore to Rs 1000 crore, the government has extend interest free loan status to the tune of 40% to 100% of NET VAT and CST for a period ranging seven years to 14 years, depending on the investment value. In the earlier policy, it was between 25% to 50% of Gross VAT for a period between 5-12 years.

The Anchor Industries (Manufacturing enterprises in a taluk providing a minimum direct employment of 150 persons with a minimum investment of Rs 250 crore) are being given special importance by providing special investment promotion subsidies and enhanced tax related incentives.

Releasing the policy, Chief Minister Siddaramaiah said  the government was committed to help projects, mainly mineral based, which were stalled due to want of infrastructure support and a clear policy with regard to mining.

“The new policy will consider these projects as focused industries and provide escort services with appropriate mining policy and speed up implementation.''

The State proposes to associate with the Centre in implementing Chennai-Bengalore-Chitradurga Industrial Corrdior and Bengaluru-Mumbai Economic Corridor, being done with external assistance of Japan and United Kingdom. To derive maximum benefit from industrial corridors, it has proposed another four corridors, the CM said.