Doing business appears to be not so easy in Karnataka owing to various factors especially with regard to land acquisition process and infrastructure.
Though communication infrastructure and availability of skilled workforce have improved, stakeholders bemoan that infrastructure development has not kept pace with the demand for rapid industrial growth across the State.
Except for a few proposals, the government had issued orders to majority of the Department of Industries and Commerce’s proposals mentioned in last year’s State Budget (2014-15). However, nothing has happened after issue of orders and announcement of new industrial policy, according to entrepreneurs and trade bodies of Karnataka.
ADVERTISEMENT
A few proposals announced last year had remained only on paper.
The Gems and Jewellery special economic zone (SEZ) on 10 hectares of land in Devanahalli through the Hutti Gold Mines Ltd. was yet to be established. Government orders were not issued on venture capital support of Rs. 10 crore to encourage potential entrepreneurs intending to set up new industries through ‘Fund of Fund’ scheme, Rs. 10 crore for upgrading the convention centre at Karnataka Trade Promotion Organisation, Bengaluru, and release of Rs. 1crore for Karnataka Khadi Gramodyoga Sangha, Hubballi, according to officials in the department. The department was still in the process of land acquisition for many new projects, including Gems and Jewellery SEZ, and industrial towns.
Entrepreneur and member of several trade/industry bodies J. Crasta said that apart from bureaucratic delays and multiple procedures, the State had failed to capitalise on the availability of natural resources and human capital owing to absence of quality roads, poor rail, air and port connectivity and shortage of electricity in tier-II cities.
ADVERTISEMENT