Karnataka to abolish civic body licences for industries

The Karnataka government has introduced a legislation to abolish trade licences issued by municipal corporations and municipalities.

A Bill titled ‘The Karnataka Municipal Corporations and Certain Other Law (amendment) Bill, 2015 was tabled in the State Assembly today by Minister for Urban Development Vinay Kumar Sorake.

Wide exemption The Bill aims to do away with the need for obtaining licences from urban local bodies by all micro, small and medium enterprises registered under Micro, Small and Medium Enterprises Development Act 2006 in District Industries Centre (DIC) and large industries who have filed industrial entrepreneurs memorandum or industrial licence and promotion of the Central government.

Introducing the Bill, Sorake said, “It is considered necessary to amend both the Karnataka Municipalities Act 1964 and Karnataka Municipal Corporations Act 1976 in order to meet the objectives of the Karnataka Industrial Policy 2014-2019 by exempting certain enterprises from obtaining trade licence in the jurisdiction of urban local bodies.”

Chamber hail move The abolition of trade licence had been a long-standing demand of small, medium and large enterprises. Karnataka Small Scale Industries Association (Kassia) which had sought abolition of trade licence welcomed the move. A Padmanabha, Vice-President, Kassia, said the move will help in ease of doing business.

The Bangalore Chamber of industry and Commerce (BCIC), welcoming the amendment Bill, said this is an important step.

Anuj Sharma, President, BCIC, said, “The proposed amendment is an encouraging move by the State government.”

Thyagu Valliappa, Senior Vice-President, BCIC, added, “The proposal will strengthen the new Industrial Policy and attract fresh investments at the Invest Karnataka Summit be held in February 2016.”