Time and cost-saving measures introduced
The Karnataka government today amended the long-pending industrial reform to facilitate and attract investment in the state
The amended “Karnataka Industries (Facilitation) Act, 2002” is expected to boost investment across sectors as a huge game-changer for medium and small industries to commence manufacturing without having to wait for any statutory clearances for the first three years.
Currently, only Gujarat and Rajasthan are the two states in the country that have amended this Act for small scale industries but Karnataka’s amended act includes small-, medium- and large-scale industries.
Under the amended Act, announced on 25 June 2020 in Bangalore, the industry would not need any statutory permissions for the first three years, or whichever is earlier to set up operations in the state.
These permissions include approvals from under multiple state laws, including trade licence and building-plan approval, measures that would save a lot of time and cost for industries.
The amended Act aims to simplify regulations and reduce procedural requirements and create a conducive investment environment.
Economies worldwide are seeing a slow transition and will require a longer period to restore the pre-COVID normalcy levels. In midst of these sobering business environments, the Karnataka State Cabinet cleared the (Facilitation) Act, 2002.
This Act has been a long-pending demand by the investors and will usher in investments to the state in the coming days.
During a media briefing held today at Bengaluru, Jagdish Shettar, Minister for Large- & Media-Scale Industries, said, “This an historic decision taken for the benefit of the industrial sector. This decision has been undertaken as the government wants to promote Ease of Doing Business and facilitate investors to invest in the state.”
In the past, numerous procedures and clearances have resulted in a delay of setting up industries and escalated the project cost for the investors, thus resulting in a huge economic toll and delayed investment to the state. Keeping that in mind, the newly amended Act shall ensure the investors are insulated by the delays.
In order to kick-start the economic activity post-COVID-19, the Karnataka government in the last few weeks has stressed on ‘Ease of Doing Business’, with a single-window for investors, simplified processes, regular consultation with Industry, stable policy-driven.
The state has also simplified land and labour laws to promote Karnataka as an investment destination. fiinews.com
