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FICCI offers help to Karnataka achieve growth target

Our Bureau

BANGALORE, July 19

FICCI has offered to help Karnataka achieve its target industrial growth rate of 10-12 per cent through partnerships in seven key areas.

The apex chamber can catalyse growth by offering expertise in agro processing and food parks, IT, SEZs, energy and environment audit; quality training for public and private enterprises; infrastructure and power sector, the FICCI President, Mr Chirayu R. Amin, told the Chief Minister, Mr S.M. Krishna, here on Thursday.

Karnataka has made quick progress in the past three years, especially in the IT and hi-tech sectors. While it is projecting itself on the global map, the FICCI can help channelise FDI flows, enable State PSU disinvestment and in working out financial ref orms.

However, the State has miles to go, Mr Amin said. Listing out bottlenecks in industrial growth, he said the rate of project implementation was 26.5 per cent till April this year; Other factors were corruption; poor infrastructure; costly and poor power s upply; bad road, rail and ports; high and multiple taxes.

He suggested a permanent machinery for implementing and monitoring projects and expert groups to revive the core sector. Labour reforms, contract labour and rationalisation of local taxes were also the need of the industry.

On the positive side, the State's industrial policy is on the right track and its hi-tech industries -- IT, electronics, telecom, precision engineering, auto, biotech and food processing -- will show huge growth.

Mr Krishna in reply said steps were being taken to improve the infrastructure and introduce transparency and accountability in governance.

Plan to raise limit for tender

Karnataka is planning to raise the limit for calling tenders from Rs 2 lakh to Rs 5 lakh. This will apply to all projects and works from village to highest Government bodies, the Chief Minister, Mr S.M. Krishna, told the FICCI meeting on Thursday. The mo ve is being decided by the State Cabinet.