PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA
NEW INDUSTRIAL POLICY
Click here to view new industrial Policy in English
Click here to view new industrial Policy in Kannada
Industrial Policy – 2006-2011 (Old)
PREAMBLE
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).
Karnataka has been a pioneer in industry. For several years now, the State has been
consistently pursuing progressive industrial policies to meet the changing needs of the State’s
economy and Industry. Over the last 100 years, the State has had the distinction of building a
strong and vibrant industrial base, which combines the intrinsic strengths of large industrial
public sector undertakings, large and medium privately owned industries and a very wide and
dispersed small-scale sector. The State has demonstrated its strength over a wide spectrum
of sectors in industry and has outstanding examples of success in the old economy. In recent
times, Karnataka has emerged as the knowledge and technology capital of the country making
rapid strides in the new economy as well. IT and related industries, biotechnology and strong
research and development institutions have given Karnataka a pride of place in the global
market. Karnataka being one among the Top five Industrialised States in the country, has
achieved substantially in promoting hi-tech industries in key sectors like Electronics,
Telecommunication, Information Technology, Precision Engineering, Automobiles, Readymade
garments, Bio-technology and Food Processing and also witnessed considerable foreign direct
investment (FDI) both in Bangalore and in other parts of the State. 2
The 2001-2006 Industrial Policy announced in the Government Order dated 30.06.2001
read at (5) above, incorporated the various features reflected in the liberalised Economic Policy
of the Govt.of India to give an impetus to industrial growth and to attract investments in identified
sectors as also to ensure uniform dispersal of industries more particularly in the backward
areas of the State.
During the 2001-06 Industrial Policy period, investment approvals of projects (with
investments of over Rs.50 Crores each) by the State High Level Clearance Committee (SHLCC)
and large & medium projects by the State Level Single Window Agency (SLSWA) have shown
sustained increase/growth. The number of projects approved by the SHLCC is 148 with an
investment of Rs.1,15,882 Crores and with an employment potential of 13,75,000 persons.
Similarly, the number of projects approved by SLSWCC is 861 with an anticipated investment
of Rs.19,044 Crores and employment potential of 5,90,869 person. During the same policy
period 65,231 SSI units registered with Rs.2079.62 Crores of investment and provided
employment to 2,95,487 persons.
Bangalore has the distinction of being the destination for a large number of Multi-National
Companies in knowledge based industries and technology driven sectors and is today
recognised as one of the Top 10 Technopolises in the World. The growth in the Information
Technology Sector has been phenomenal. Similarly, the growth in other sectors like petroleum
and petroleum products, iron ore and minerals, silk products, gems and jewellery, plastic goods,
basic chemicals, pharmaceuticals and cosmetics etc., have been substantial during the last
Industrial Policy period and during 2005-2006, the State of Karnataka recorded an export
performance of Rs.82,280 Crores.
In the Govt.Order No.CI 319 SPI 2005 dated 24.10.2005, a Core Group under the
chairmanship of Sri P.P.Prabhu, IAS (Retd) with two members, one an expert in the field of
Economics and another from Industry, was constituted to advise the government on the broad
contours of a New Industrial Policy that will guide the State’s Industrial development over a
period of five years beginning from April, 2006. This Core Group, after detailed discussions
and consultation with industrialists, Industry Associations, Labour Representatives and Senior
Officers of Government Departments/ Organisations/Agencies related to industries sector and
after visiting Mysore, Mangalore, Hubli and Gulbarga and discussing with the regional
representative of the industry associations of the respective regions submitted its Report to the
State Government on 18.04.2006 which inter alia contained the proposed objectives of the
New Industrial Policy and also the strategy to be adopted to realise the said objectives. 3
Due to limitations of land availability and expansion of the irrigation potential, industrial
development, particularly in the rural and backward areas, is critical for augmenting
employment in the non-farm sector. This is particularly so to meet the aspirations of the
educated youths in the rural areas who need to be encouraged to set-up micro-enterprises not
only as an employment generation scheme but also for economic development of the rural and
backward areas.
On the basis of the recommendations of the Core Group on New Industrial Policy and
with due regard to the rationale contained in the Industrial Policy 2001-06 and taking into
account the positive results achieved through adoption of the said Policy as also discussing
the matter in all its aspects with the Departments concerned, a decision has been taken to
adopt a new Industrial Policy for the period 2006-2011. Hence, the following order:
GOVT.ORDER NO.CI 319 SPI 2005, BANGALORE,
DATED: 26th AUGUST, 2006
In the circumstances explained in the preamble, Government is pleased to announce
the New Industrial Policy-2006-2011, as detailed in the Annexure-A to this order and
supported by other Annexures namely Annexure-B, C and D which inter alia contain details
about classification of Taluks in Karnataka into Zones for the purpose of administering graded
scale of incentives and concessions, Incentives and Concessions for Mega, Large & Medium,
and Small Scale Industries, and list of Industrial activities/Units ineligible for incentives &
concessions respectively.
2. The salient features of the New Industrial Policy 2006-2011, are as follows:
(i) It aims at increasing the percentage in GSDP growth, strengthen manufacturing industry;
increase share of exports from Karnataka in the National exports, to generate additional
employment to at least 10.00 lakh persons in the manufacturing and service sectors,
promote diversified industrial base; reduce regional imbalance in the matter of economic
development and employment opportunities and ultimately aim at overall socio-economic
development of the State.
(ii) The strategies for further industrialisation of the State during the next five years include
zoning of various taluks with special emphasis on most/more backward taluks for the
purpose of industrial growth, develop in an integrated manner, industrial infrastructure in
various key locations of the State ahead of the requirements, implement mega industrial
water supply schemes for potential locations through SPVs; encourage specialised
industrial infrastructure for specific sectors and SEZs, encourage development of industrial 4
cluster/corridor and give priority to upgradation of infrastructure in existing and new
industrial areas and to that effect set-up an infrastructure Upgradation Fund with an
initial corpus of Rs.500 Crores, promote Human Resource Development; promote
Agro Food Processing Industry; take up technology upgradation for Survival and growth
of SSI sector and create a Technology Upgradation Initiative Fund with a corpus of
Rs.25.00 Crores; provide marketing assistance to SSI sector and promote local
entrepreneurship etc.
(iii) Extending various incentives and concessions relating to Entry Tax and Special Entry
Tax; waiver of conversion fine; exemption of stamp duty and reduction of registration
charges have also been considered.
3. The above Industrial Policy and the incentives package shall be deemed to have come
into effect from 1.4.2006 and will have a span of five years therefrom i.e. upto 31.03.2011.
4. This order issues with the concurrence of the Finance Dept. vide U.O.Notes No.FD 1157
Exp-I/2006 dated 7-8-2006 & 19-8-2006 respectively; Revenue Department vide
D.O.letter No.‘Е…/‘Ñ/2-9/2006 dated 19-6-2006; Forest, Environment & Ecology
Department vide D.O. letter No. FEE 203 ECO 2006 dated 27-6-2006; Planning &
Statistics Department vide D.O. letter No. PD 38 ACSPS 2006 dated 27-6-2006;
Agriculture & Horticulture Department vide U.O. Note No.‘ÐسÙÖÓ… 111 ³ÙÖÓ•¦ÙÖÓ‘Ñ 2006
dated 24-6-2006; Urban Development Department vide U.O. Note No. UDD 142 BMR
2006 dated 26-6-2006; Energy Department vide D.O. letter No. EN 116 PRS 2006 dated
23-6-2006; Water Resources Department vide U.O. Note No. WRD 64 MBI 2006 dated
23-6-2006; Labour Department vide U.O.Note No. ‘Ñ… 69 Ë÷ÓÀÐԤР2006 dated 28-6-2006;
Transport Department vide D.O. letter No. TRD/40/R & I/2006 dated 27-6-2006;
Co-operation Department vide U.O.Note No. CD:SECY:T-114:2006 dated 14-8-2006.
By order and in the name of
the Governor of Karnataka
[K.M. Shivakumar]
Principal Secretary to Government
Commerce & Industries Department
For more details click here or visit http://www.karnatakaindustry.gov.in
NEW INDUSTRIAL POLICY
Click here to view new industrial Policy in English
Click here to view new industrial Policy in Kannada
Industrial Policy – 2006-2011 (Old)
PREAMBLE
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).
Karnataka has been a pioneer in industry. For several years now, the State has been
consistently pursuing progressive industrial policies to meet the changing needs of the State’s
economy and Industry. Over the last 100 years, the State has had the distinction of building a
strong and vibrant industrial base, which combines the intrinsic strengths of large industrial
public sector undertakings, large and medium privately owned industries and a very wide and
dispersed small-scale sector. The State has demonstrated its strength over a wide spectrum
of sectors in industry and has outstanding examples of success in the old economy. In recent
times, Karnataka has emerged as the knowledge and technology capital of the country making
rapid strides in the new economy as well. IT and related industries, biotechnology and strong
research and development institutions have given Karnataka a pride of place in the global
market. Karnataka being one among the Top five Industrialised States in the country, has
achieved substantially in promoting hi-tech industries in key sectors like Electronics,
Telecommunication, Information Technology, Precision Engineering, Automobiles, Readymade
garments, Bio-technology and Food Processing and also witnessed considerable foreign direct
investment (FDI) both in Bangalore and in other parts of the State. 2
The 2001-2006 Industrial Policy announced in the Government Order dated 30.06.2001
read at (5) above, incorporated the various features reflected in the liberalised Economic Policy
of the Govt.of India to give an impetus to industrial growth and to attract investments in identified
sectors as also to ensure uniform dispersal of industries more particularly in the backward
areas of the State.
During the 2001-06 Industrial Policy period, investment approvals of projects (with
investments of over Rs.50 Crores each) by the State High Level Clearance Committee (SHLCC)
and large & medium projects by the State Level Single Window Agency (SLSWA) have shown
sustained increase/growth. The number of projects approved by the SHLCC is 148 with an
investment of Rs.1,15,882 Crores and with an employment potential of 13,75,000 persons.
Similarly, the number of projects approved by SLSWCC is 861 with an anticipated investment
of Rs.19,044 Crores and employment potential of 5,90,869 person. During the same policy
period 65,231 SSI units registered with Rs.2079.62 Crores of investment and provided
employment to 2,95,487 persons.
Bangalore has the distinction of being the destination for a large number of Multi-National
Companies in knowledge based industries and technology driven sectors and is today
recognised as one of the Top 10 Technopolises in the World. The growth in the Information
Technology Sector has been phenomenal. Similarly, the growth in other sectors like petroleum
and petroleum products, iron ore and minerals, silk products, gems and jewellery, plastic goods,
basic chemicals, pharmaceuticals and cosmetics etc., have been substantial during the last
Industrial Policy period and during 2005-2006, the State of Karnataka recorded an export
performance of Rs.82,280 Crores.
In the Govt.Order No.CI 319 SPI 2005 dated 24.10.2005, a Core Group under the
chairmanship of Sri P.P.Prabhu, IAS (Retd) with two members, one an expert in the field of
Economics and another from Industry, was constituted to advise the government on the broad
contours of a New Industrial Policy that will guide the State’s Industrial development over a
period of five years beginning from April, 2006. This Core Group, after detailed discussions
and consultation with industrialists, Industry Associations, Labour Representatives and Senior
Officers of Government Departments/ Organisations/Agencies related to industries sector and
after visiting Mysore, Mangalore, Hubli and Gulbarga and discussing with the regional
representative of the industry associations of the respective regions submitted its Report to the
State Government on 18.04.2006 which inter alia contained the proposed objectives of the
New Industrial Policy and also the strategy to be adopted to realise the said objectives. 3
Due to limitations of land availability and expansion of the irrigation potential, industrial
development, particularly in the rural and backward areas, is critical for augmenting
employment in the non-farm sector. This is particularly so to meet the aspirations of the
educated youths in the rural areas who need to be encouraged to set-up micro-enterprises not
only as an employment generation scheme but also for economic development of the rural and
backward areas.
On the basis of the recommendations of the Core Group on New Industrial Policy and
with due regard to the rationale contained in the Industrial Policy 2001-06 and taking into
account the positive results achieved through adoption of the said Policy as also discussing
the matter in all its aspects with the Departments concerned, a decision has been taken to
adopt a new Industrial Policy for the period 2006-2011. Hence, the following order:
GOVT.ORDER NO.CI 319 SPI 2005, BANGALORE,
DATED: 26th AUGUST, 2006
In the circumstances explained in the preamble, Government is pleased to announce
the New Industrial Policy-2006-2011, as detailed in the Annexure-A to this order and
supported by other Annexures namely Annexure-B, C and D which inter alia contain details
about classification of Taluks in Karnataka into Zones for the purpose of administering graded
scale of incentives and concessions, Incentives and Concessions for Mega, Large & Medium,
and Small Scale Industries, and list of Industrial activities/Units ineligible for incentives &
concessions respectively.
2. The salient features of the New Industrial Policy 2006-2011, are as follows:
(i) It aims at increasing the percentage in GSDP growth, strengthen manufacturing industry;
increase share of exports from Karnataka in the National exports, to generate additional
employment to at least 10.00 lakh persons in the manufacturing and service sectors,
promote diversified industrial base; reduce regional imbalance in the matter of economic
development and employment opportunities and ultimately aim at overall socio-economic
development of the State.
(ii) The strategies for further industrialisation of the State during the next five years include
zoning of various taluks with special emphasis on most/more backward taluks for the
purpose of industrial growth, develop in an integrated manner, industrial infrastructure in
various key locations of the State ahead of the requirements, implement mega industrial
water supply schemes for potential locations through SPVs; encourage specialised
industrial infrastructure for specific sectors and SEZs, encourage development of industrial 4
cluster/corridor and give priority to upgradation of infrastructure in existing and new
industrial areas and to that effect set-up an infrastructure Upgradation Fund with an
initial corpus of Rs.500 Crores, promote Human Resource Development; promote
Agro Food Processing Industry; take up technology upgradation for Survival and growth
of SSI sector and create a Technology Upgradation Initiative Fund with a corpus of
Rs.25.00 Crores; provide marketing assistance to SSI sector and promote local
entrepreneurship etc.
(iii) Extending various incentives and concessions relating to Entry Tax and Special Entry
Tax; waiver of conversion fine; exemption of stamp duty and reduction of registration
charges have also been considered.
3. The above Industrial Policy and the incentives package shall be deemed to have come
into effect from 1.4.2006 and will have a span of five years therefrom i.e. upto 31.03.2011.
4. This order issues with the concurrence of the Finance Dept. vide U.O.Notes No.FD 1157
Exp-I/2006 dated 7-8-2006 & 19-8-2006 respectively; Revenue Department vide
D.O.letter No.‘Е…/‘Ñ/2-9/2006 dated 19-6-2006; Forest, Environment & Ecology
Department vide D.O. letter No. FEE 203 ECO 2006 dated 27-6-2006; Planning &
Statistics Department vide D.O. letter No. PD 38 ACSPS 2006 dated 27-6-2006;
Agriculture & Horticulture Department vide U.O. Note No.‘ÐسÙÖÓ… 111 ³ÙÖÓ•¦ÙÖÓ‘Ñ 2006
dated 24-6-2006; Urban Development Department vide U.O. Note No. UDD 142 BMR
2006 dated 26-6-2006; Energy Department vide D.O. letter No. EN 116 PRS 2006 dated
23-6-2006; Water Resources Department vide U.O. Note No. WRD 64 MBI 2006 dated
23-6-2006; Labour Department vide U.O.Note No. ‘Ñ… 69 Ë÷ÓÀÐԤР2006 dated 28-6-2006;
Transport Department vide D.O. letter No. TRD/40/R & I/2006 dated 27-6-2006;
Co-operation Department vide U.O.Note No. CD:SECY:T-114:2006 dated 14-8-2006.
By order and in the name of
the Governor of Karnataka
[K.M. Shivakumar]
Principal Secretary to Government
Commerce & Industries Department
For more details click here or visit http://www.karnatakaindustry.gov.in
Comments
Post a Comment