Home >News >India >Karnataka introduces more amendments to industries act to attract investments

BENGALURU: The state government on Thursday introduced amendments to sections of the Karnataka Industries (Facilitation) Act 2002 to do away with statutory nods required to commence construction and other works.

"As soon as the district or state committee approves the project, the industry can start civil work, construction and installation of machinery," Jagadish Shettar, minister of large and medium scale industries said in Bengaluru.

The Karnataka government will soon issue an ordinance to this effect.

The amendments is part of Karnataka's efforts to improve ease of doing business by doing away with statutory approvals that delayed the commencing of work and blocked investments.

Facing an acute fund crunch and prolonged economic uncertainty due to the covid- 19 induced lockdown, the Bharatiya Janata Party (BJP) government has even diluted labour laws to bring in investments to help generate employment.

Shettar said the industry will have three years to get all approvals in place but needn't wait to start work.

Karnataka has lost out thousands of crores of investments due to delays in approvals that forced industries to scout for space in neighbouring states.

Delays in ironing out long winding issues on land availability for industries may have cost Karnataka a chance to convert investments totalling over 39,000 crore and a chance to create over 80,000 jobs according to government data, Mint reported in November last year.

These projects were cleared by committees including one headed by the chief minister itself but were stuck due to delays in approvals from other departments.

Yediyurappa had announced further amendments to land laws in January that allowed easier conversion for non-agricultural purposes to mitigate delays faced by industries.

Shettar also said the government will give 100% stamp duty exemption for agreements, sale deeds and other requirements for production of electric vehicles (EV).

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