Bangalore: Karnataka’s new industrial policy (2014-19), a much-awaited document to attract big investments into the State, got the approval of the State Cabinet on Thursday.
Creating an enabling environment for investors being its cornerstone, the policy measures cover various aspects relating to the manufacturing sector, including tax concessions.
The policy, cleared at the Cabinet meeting chaired by Chief Minister Siddaramaiah, has been formulated after considerable discussions with stakeholders, he told presspersons.
Tax-related incentives offered come in the form of tax holiday (VAT and CST) for a period of 7 to 14 years, depending upon investment and zone. As part of measures to enhance the contribution of the manufacturing sector to the State GDP to 20 per cent, the policy has abolished trade licences for micro, small and medium enterprises (MSMEs) in municipal areas.
One of the distinguishing features of the policy is the increase in the number of industrial zones to six from the four that exists now.
This would translate into easier decision making on issues concerning industries across 176 taluks that comprise the six zones. Jayachandra said the new policy classified 176 taluks into six industrial zones, against four in the 2009-14 policy.