The Hindu Business Line : FICCI to help refurbish Brand Karnataka

The apex body has proposed to hold a joint a Business Partnership Summit around March-April next year to showcase all the competences of the State under a programme called Dynamic Karnataka.

The FICCI President, Mr Yogendra K. Modi, told a news conference amidst the ongoing banking summit here on Wednesday that the federation had made a presentation to the State Industry & Infrastructure Minister, Mr P.G.R. Sindhia, on how seven-eight key sectors could be energised and put back on the growth path.

Among them are agriculture and agro food-processing, power, roads, ports and airports and general infrastructure; knowledge based industries such as infotech and biotechnology, tourism, textiles and SMEs.

The proposal, he said, was to revitalise Karnataka's various policies and make them attractive for domestic and international investors.

FICCI's 74 joint business councils overseas would be used to jointly promote the State, as the federation had done for Gujarat and a few other States.

"We are talking not just of Bangalore and IT but entire Karnataka" and its other centres of competence such as agro-processing and high-quality manufacturing, said the FICCI Secretary-General, Dr Amit Mitra.

According to FICCI, public-private partnerships should be encouraged to develop infrastructure projects.

In the power sector, T&D losses of 32 per cent need to be reduced by privatising distribution networks.

Tadri and Karwar ports, which face competition from Chennai and Goa ports, should be upgraded as also airports at tier-two cities of Hubli, Belgaum, Gulbarga, Bijapur, Mysore and Hassan.

It also suggests dedicated agri-export zones, promotion of contract farming along with a flexible labour policy that allows contract labour in SEZs and export-related activities.

The State Government is having a "rethink" on the cess levied on captive power generation, according to the Industry & Infrastructure Minister, Mr P.G.R. Sindhia.

Replying to a suggestion made by the FICCI President, Mr Y.K. Modi, the Minister admitted that the move by the previous government's 2002-03 Budget was unfair.

"When we are not generating quality power, we cannot tax those who are generating power," he said, indicating that the issue may be reviewed and withdrawn.

Earlier, Mr Modi in his presentation said the State would need a mega NTPC power unit to meet its demand for the next five years.

IT would have to double the current generation capacity of 4366 MW.

A major obstacle to the industry was the cess on captive power generation and the concessional rate on diesel - both of which had to be scrapped.

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