The idea is to reduce burden on Bangalore. State Budget may be around Rs. 1.30 lakh crore.

The State budget for 2013-14 to be presented by Chief Minister Jagadish Shettar will have a scheme for providing incentives to industries willing to operate from the backward areas instead of seeking to be located in Bangalore.

Disclosing this to mediapersons after attending a programme to mark the launch of centenary celebrations of the Department of Industries and Commerce (DIC) here, Minister for Large and Medium Industries Murugesh R. Nirani said such a scheme was being taken up to use industries as growth-stimulators to bring about the development of backward regions.

Besides, it also aimed at desisting from further increasing the pressure on Bangalore and its surroundings, as every industry wanted to be located near it, he said.

The backward areas had been identified based on various parameters, including those prescribed by the Nanjundappa high power committee on removal of regional imbalances.

Rs. 1.30 lakh crore budget?

Addressing the programme earlier, Mr. Nirani said the size of the proposed state budget was expected to be around Rs. 1.30 lakh crore compared with Rs. 1.06 lakh crore the previous year. He said stage will be set for reducing the property tax and granting exemption from obtaining trade licence for small-scale industries in about a week from now.

The Minister announced that taluk level offices of the DIC would be set up soon to help industrial development. He said the loans with subsidised interest were being considered for medium scale industries.

Earlier, addressing the programme, Chief Minister Jagadish Shettar advised the DIC to take up a scheme for incentivising the industries which are willing to be located in backward areas and tier-2 and tier-3 cities. He assured the Department of providing all the necessary support including funds if such a scheme was proposed to him.

He said such a measure was a must to reduce the pressure on Bangalore.

Speaking on the occasion, Minister for Small-Scale Industries Narasimha Naik (Raju Gowda) said a separate secretariat had been set up recently for Small-Scale Industries.


The Department of Industries and Commerce, which was set up in 1913 following the initiative taken up by Technocrat Sir M. Visvesvaraya, has completed 100 years of service. The Department has decided to hold a State-level programme sometime in October-November to mark the centenary celebrations.

It is also planning to hold district-level exhibitions to introduce various programmes being taken up by it to people.

Department’s senior officials including Principal Secretary M.N. Vidyashankar and Industries Commissioner Maheshwar Rao were present.