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Karnataka should explore dual land pricing policy to address the issue of regional imbalance and encourage the spread of industries across the State.
In a policy recommendation to the State Government, Bangalore Chamber of Industry and Commerce (BCIC) said the dual land pricing policy, where industrial land beyond a radius of 100 km of Bangalore could be allotted at a concession.
The recommendation is a part of the study ‘Ease of doing business in Karnataka’ conducted by BCIC jointly with Centre for Sustainable Development (CSD).
“To address the issue of regional imbalance and to encourage the spread of industries across the State, the government should also come out with a separate policy,” said HV Harish, outgoing President, BCIC and partner, Grand Thornton.
Another key recommendation is to set up an empowered committee to give clearances for setting up industries in a short time.
At present, there are two committees to give clearance for setting up industries at the State level – single window clearance committee chaired by the Chief Secretary (₹15 crore to ₹100 crore) and the second high-level clearance committee (HLC) chaired by the Chief Minister for cases above ₹100 crore.
“We observed that the number of proposals coming before the HLC is very small. Hence the two committees can be merged into a single one to be chaired by the Chief Secretary and concerned secretaries of the department,” Harish explained.
“This committee must place such proposals as required under rules for cabinet approval. This will speed up investment decisions,” he said.
The study also showed that the industry also needs a proactive facilitator. The Karnataka Udyog Mitra must be restructured to make it as an effective single window agency.
The existing laws such as the Karnataka Industries Facilitation Act, KIAD Act, Land Revenue Act and Land Reforms Act need to be suitably amended to provide a conducive regulatory environment for businesses.
The institutions involved in promoting industry in the State – the KUM, KIADB, DIC – must be restructured, the report added.
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