Mission to achieve 8 p.c. growth rate

By Our Special Correspondent

BANGALORE, JUNE 25. The State will have a new industrial policy with the Government limiting its role to provision of high quality infrastructure and technology upgradation and doing away with the fiscal incentives which was the highlight of the policy till now.

The Cabinet at its meeting here on Monday approved the New Industrial Policy 2001 for five years from April 1, 2001. The earlier one had been approved and implemented by the Janata Dal Government from 1996.

The policy sets out as its mission: achievement of an economic growth rate of eight per cent to nine per cent in the next decade, industrial growth of 10 per cent to 12 per cent, provision of high quality infrastructure, extending institutional support for technology upgrading, deregulating the business environment and catalysing the entrepreneurial and creative capabilities of the people and fully tap the potential of small scale and tiny industries particularly in rural areas, to generate jobs and utilise local resources.

The policy is notable for its emphasis on the small- scale industry sector which has been complaining of neglect ever since the policy of liberalisation and globalisation was adopted.

The Minister for Small-Scale Industries, Mr. Kashappanavar, and the Principal Secretary for Industries, Mr. B.S.Patil, briefed the Press about the new policy.

The policy envisages the creation of a Rs.50-crore ``Technology Upgradation Fund'' to be utilised over five years. It would be utilised to provide interest subsidy to small and medium industries, promotion of technology business incubators, establishment of special technology parks, material and product testing centres and incentives for total quality management.

A Rs.100-crore infrastructure development fund would be created and industrial townships in major industrial areas would be developed. The Karnataka Industrial Area Development Board would be the nodal agency for development of sector specific and location specific parks for agro, apparel, special economic zones, export promotion industrial parks, auto, biotechnology and financial district. The industrial sector has been assured of uninterrupted and quality power from the KPTCL. Electronics, telecommunication, biotechnology, bioinformatics, agro food processing, IT and 100 per cent export-oriented industries have been identified as core areas.

The policy speaks of deregulating the business environment and the enactment of a comprehensive Industries Promotion Act, making the Karnataka Udyog Mitra the nodal agency for obtaining clearances, establishment of a WTO Cell and relay centre, and introduction of common application form for various clearances.

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