Cabinet decides to amend Industrial (Facilitation) Act

It will fast track setting up units without waiting for clearances

June 25, 2020 11:37 pm | Updated June 26, 2020 09:12 am IST - Bengaluru

Jagadish Shettar

Jagadish Shettar

The State Cabinet on Thursday decided to amend the Karnataka Industrial (Facilitation) Act, 2002, allowing entrepreneurs to set up industries on identified lands in districts without waiting for clearances/approvals from different departments/agencies, including land conversion from the Revenue Department.

In tune with the ease of doing business model, the Cabinet approved amendments to the Act and it would help investors to fast track execution of the project, installation of machinery and commencement of production, Large and Medium Scale Industries Minister Jagadish Shettar informed the press after attending a Cabinet meeting chaired by Chief Minister B.S. Yediyurappa.

An Ordinance

The Congress government led by S.M. Krishna had introduced the Karnataka Industrial (Facilitation) Act, 2002. The amendment to the Act would be enforced by bringing an Ordinance, Mr. Shettar said.

The investor would be given a three-year period for obtaining all necessary clearances from departments. The changes in the Act would be applicable to all types of private industries – small, medium and large.

Only cleared projects

Moreover, this facility would be applicable only to investors whose projects are cleared by the State High Level Clearance Committee (SHLCC) headed by the Chief Minister or the State Single Window Clearance Committee (SSWCC).

Till now, this facility was provided only in Gujarat and Rajasthan for small-scale industries only, the Minister said.

In a bid to attract investors and provide them with land in the State, the government earlier this month amended Section 109 of the Karnataka Land Reforms Act and the Bill was passed in the Budget session of the State legislature.

It pertained to acquisition and conversion of agricultural land for industrial purposes.

The amended land reforms Act provided for deemed exemption to purchase land for industrial purpose to the extent approved by the SHLCC headed by the Chief Minister or the SSWCC under the Karnataka Industrial Facilitation Act, 2002.

Boost for electric vehicles

In a move that aims at promoting electric vehicles (EVs) in the State, the government has decided to waive 100% registration charges for the vehicles. The Karnataka Electric Vehicle and Energy Storage Policy, 2017, was introduced by former Industries Minister R.V. Deshpande during the Congress government.

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