BENGALURU: A holistic approach is urgently needed to grow industries in backward regions (outside Bengaluru), including higher subsidies and assistance from the central government, said Industries Minister MB Patil here on Tuesday. “We also need to create an enabling environment for industries to grow. It is urgent that we take note of the policies of neighbouring states and take steps accordingly,’’ he added.
Addressing the consultative meeting held with the Karnataka Regional Imbalance Redressal Committee, he said that as per the recommendations of the DM Nanjundappa committee report, Rs 29,422 crore has been given to backward and more backward taluks between 2007 and 2021. High industrialisation is putting pressure on Bengaluru and at the same time, there is a need to divert industries to Kalyana-Karnataka and Kittur Karnataka regions. For that, attractive initiatives are needed, he said.
Now, those setting up businesses in the most backward areas (Zones 1 and Zone 2) get a capital investment subsidy of up to 25% and an additional 5% investment subsidy. “In areas falling under Zone 3, there is complete exemption from land registration fees and a bonus subsidy of 7.5% to 15% to provide employment to local youth. But this is not enough for growing industries,’’ he added.
He recalled that SM Krishna, when he was chief minister, had given a 10-year tax exemption to IT companies. This turned Karnataka into an IT hub. “We need to do something for other industries too,’’ he said. Additionally, the focus should be on skill development, developing human resources and other issues, he added.
The state government is rapidly developing industrial areas in backward districts (Tier-2 cities). “Of the Rs 10.27 lakh crore investment assurance made at the Global Investors Summit held in February this year, 75% is targeted outside Bengaluru. Also, 45% of this investment will be districts of North Karnataka,’’ he said.
