From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Sep 11: The eagerly looked forward new Industrial Policy of Karnataka, which is expected to be unveiled in the next few days, has an ambitious target of creating 15 lac new jobs in the next five years.

The first major landmark before the announcement of the new industrial policy is the approval of the State Cabinet.

The State Cabinet, which met under the chairmanship of the Chief Minister Siddaramaiah in Bangalore on Thursday, approved the draft of the new industrial policy for the period 2014-19.

After getting the State Cabinet approval, the new industrial policy providing insights into the intent and action plans of the government is just a step away from being made public.

Karnataka’s Law and Parliamentary Affairs Minister T B Jayachandra, who briefed reporters after the State Cabinet meeting, said the key feature of the policy is to attract investment of Rs 5 lac crore by 2019.

Tax related incentives offered is in the form of interest free loans of 100 per cent of value added tax (VAT) and Central sales tax (CST) with the maximum of 100 per cent of value fixed asset for a period of 7 to 14 years depending upon investment and zone.

As part of the measures to enhance the contribution of the manufacturing sector to the State GDP to 20 per cent, the policy seeks to abolish trade licenses for micro, small and medium enterprises (MSMEs) in municipal areas, Jayachandra said.

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 the 176 taluks that comprise the six zones.

Jayachandra said the new policy classified 176 taluks into six industrial zones against four in 2009-14 policy.

He said a notification was issued on Thursday for deemed conversion of agriculture lands for non-agriculture purposes to reduce the time taken in according approval for purchase of land under Section 109 and also for converting agriculture land for industrial purposes.

``Lands allotted for industrial purposes will not be allowed to be used for any other purpose other than industrial purposes,” he said.

This will help or facilitate purchase of land up to 25 to 30 acres without extensive regulatory procedures and permit deemed conversion for such land within a stipulated time.

The minister said under the new industrial policy, the Karnataka Transparency in Public Procurement Act would be amended to procure more items manufactured by MSMEs by the Government and semi-government agencies.

The list of items manufactured by SMEs shall be increased from 28 to 358.

The State Cabinet on Thursday also decided to fill 452 Group A and B posts through the Karnataka Public Service Commission by issuing a fresh notification.

Jayachandra said no age relaxation would be provided while filling 452 vacancies by the KPSC.Posts will be filled as per the Hota Committee recommendations accepted by the Government, he said.