Karnataka Cabinet passes ordinance for more ease of doing business

The ordinance marks the latest in a series of decisions the cabinet has taken over the last three months to facilitate industries, including amendments to land reform acts.

Published: 26th June 2020 06:38 AM  |   Last Updated: 26th June 2020 06:38 AM   |  A+A-

ease of doing business

Representational image. (File photo | EPS)

Express News Service

BENGALURU: In it bid to attract more investors and industries, the Karnataka cabinet has approved yet another statute in the form of an ordinance that allows industries more “ease of business”.

The cabinet on Thursday approved an amendment to the Karnataka Industries (Facilitation) Act, 2002, that now allows industries to begin setting up without obtaining clearances from multiple departments. All that an industry — whether large, medium or small — in Karnataka will need is an acknowledgement certificate by a nodal agency after obtaining approvals from investment committees to set up its facilities until the level of beginning commercial operations.

Industries can now go ahead with land development, civil works, construction, installation of machinery etc. with just the approval of the state High Level Clearance Committee, State Level Single Window Clearance Committee, or the District Level Single Window Clearance Committee. And all this without having to bother about clearances from multiple government agencies, including mandatory clearances under the pollution control board, forest rules, fire force act, land reforms act, trade licence, building plan approval etc.

The ordinance passed by the cabinet will allow industries to apply and get clearances from various departments within three years of receiving acknowledgement certificate, or until the set up has reached commercial operation stages. Any industry with investments less than Rs 15 crore will need clearance from the DLSWCC, and those above Rs 15 crore will need to be approved by the SLSWCC.

“This is a historic amendment that will ensure ease of business in Karnataka. Only Gujarat and Rajasthan have made such amendments, but only for small-scale industries. Single-window clearance, or conversion, and approvals for building plans needs to be done faster and this amendment will facilitate that,” said Jagadish Shettar, Minister for Large-scale Industries.

The ordinance marks the latest in a series of decisions the cabinet has taken over the last three months to facilitate industries, including amendments to land reform acts. The amendment, however, includes measures for punitive action if the land is not utilised for the intended purpose, or clearances are not received before the period of three years, or commencement of commercial operations.


The cabinet has also approved the sale of government land given on lease as per guidance value to various private organisations for prolonged periods if both parties agree. “With a rider that only such leased lands that have been developed or utilised fully for intended purposes, the cabinet has approved to sell land currently leased to industries, educational, social and religious institutions, or for agricultural purposes. Clubs will not be included in this category,” said J C Madhuswamy, Minister for Law and Parliamentary Affairs

Invest Rs 200 crore for developing lodging facilities, kalyani etc, in 7.5-acre government land in Tirumala
Rs 406.415 crore as state’s contribution to Baiyappanahalli-Hosur and Yeshwanthpur-Channasandra railway line doubling project

In-principle approval of Rs 15,767 crore to begin a Special Purpose Vehicle under PPP for Bengaluru Sub-urban Railway

Rs 4 crore as state’s annual contribution to Cauvery Tribunal
Leasing of Pandavapura Sugar Factory to Nirani Sugars for Rs 405 crore for 40 years after due tendering process

More from Karnataka.


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