The Hindu : Karnataka / Bangalore News : New industrial policy soon

Online edition of India's National Newspaper
Saturday, Jun 17, 2006

Karnataka

Karnataka - Bangalore

New industrial policy soon

Staff Reporter

Karnataka is an investor-friendly State, asserts Kumaraswamy

AWE INSPIRING: (From right) Chief Minister H.D. Kumaraswamy, Deputy Chief Minister B.S. Yediyurappa and Minister for Small-scale Industries Katta Subramanya Naidu looking at a model of an ISRO satellite launch vehicle at the KASSIA Industrial and Tec hnology Exhibition in Bangalore on Friday. — Photo: K. Bhagya Prakash

BANGALORE: The State Government will soon come out with a new industrial policy, which will have good news for the small-scale sector. The Government wants to send out the signal that Karnataka is still an investor-friendly State, Chief Minister H.D. Kumaraswamy has said.

Inaugurating the Industrial and Technology Exhibition of the Karnataka Small-scale Industries Association (KASSIA), Mr. Kumaraswamy said he had recently learned that the Tatas had abandoned plans to set up a car-manufacturing unit in Hubli and opted for Kolkata, since Hubli could not meet the water supply requirement for the unit. "I want to make it clear now that we are ready to provide all the infrastructure and every need that industries require," he said and reiterated that the new industrial policy would address all these concerns.

In return, he said, organisations like KASSIA should come up with innovative interventions that would enhance the employability of local people, "who have become a minority in our own State." A training programme for security guards would be a good place to start, as this was one sector where he found that most information technology companies and others setting up shop here were employing non-Kannadigas. "I am certain that there is a potential to provide at least three lakh jobs as security guards. This will be in your own interests too, as more offices and industries mean a greater need for protection and security," he said.

In the course of his speech, Mr. Kumaraswamy received a note, which suggested that he should immediately announce a subsidy of Rs. 50 crore for the small-scale sector. "In a few days, I will release Rs. 50 crore for this sector," he announced.

Backbone of industry

Deputy Chief Minister B.S. Yediyurappa said the small-scale sector was the backbone of industrial development in the State, which had always been an industry- and investor-friendly State. The coalition government of Janata Dal (Secular) and the Bharatiya Janata Party was continuing the tradition of taking along the small sector. He said the Government had set aside Rs. 25 crore for industrial training programmes for youth and urged industry to provide a matching investment so that one lakh young persons could be trained with a monthly stipend of Rs. 750.

Minister for Small-scale Industries Katta Subramanya Naidu urged the Small Industries Development Bank of India to emulate the State Government, which was providing farm loans at 4 per cent interest and provide low-interest loans to investors in the small-scale sector. The Government had decided to set aside 6,000 hectares of land for this sector and 400 hectares had already been acquired.

The four-day exhibition is showcasing technology and innovations in the sector and features seminars on various aspects.

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