The Hindu Business Line : CII-Karnataka draws 7-point agenda to improve industrial climate

THE Confederation of Indian Industry (Karnataka) has come out with a seven-point agenda for the Government to improve industrial climate in the State.

In a pre-Budget memorandum submitted to the Government, the Chamber has suggested linking the growth rate of infrastructure to that of population in the State to avoid undue pressure on infrastructure. Improvement of State highways and district roads should get more priority.

The Karnataka Industrial Area Development Board (KIADB) and the Karnataka Industrial Infrastructure Development Corporation should play a greater role in developing a conducive environment for investment in the State.

Among other things, the CII agenda focuses on improving export performance by strengthening logistics for easier clearance at the Inland Container Depot and ports; time-bound completion of major infrastructure projects such as the Bangalore International Airport and Hassan-Mangalore Rail link; targeting five per cent growth in agriculture through the use of large and medium-size irrigation projects and small water harvesting initiatives and diversification into less water intensive crops.

It also laid stress on giving impetus to manufacturing by encouraging privatisation of State public enterprises in potential growth sectors, carrying out reforms in labour laws and power sector reforms and encouragement to setting up of R&D centres; creation of investor-friendly environment for the BPO sector; marketing of tourism, simplifying the tax structure of the hotel industry and improving connectivity via road as well as air to boost tourism.

To encourage industrialisation in backward areas, the Government should extend 100 per cent tax exemption for the first five years and 30 per cent for the next five years. A capital investment subsidy of 15 per cent of the investment in plant and machinery should be given.

In its memorandum to the Government, the All India Agarbathi Manufacturers' Association has sought exemption of sales tax on the product. The empowered committee of Chief Ministers had recommended exemption of sales tax on agarbathis.

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