Govt. to promote industry-friendly climate

By Our Staff Reporter

BANGALORE, SEPT. 26. The Minister for Large and Medium-scale Industries, Mr. R. V. Deshpande, today announced that major reform measures to deregulate the industrial and business environment, dispensing with many outmoded procedures, would come into effect from November 1.

Speaking to reporters, after two meetings yesterday and today with senior officials and the Chief Minister, Mr. S. M. Krishna, and other cabinet colleagues, Mr. Deshpande said entrepreneurs would be spared the misery of running from pillar to post to submit applications and get clearances from various departments to set up a venture.

He said Mr. Krishna, who reviewed the proposed measures, had directed all heads of departments to complete making the required amendments within a month so that the reforms would become effective from November 1. If necessary, the Government would promulgate an Ordinance for the purpose.

Mr. Deshpande said initially the rules would be amended followed by amendments to the relevant Acts. The Karnataka Udyog Mitra had been designated as the nodal agency to obtain all approvals under various Acts and rules. To confer legal status to the new measures, it was proposed to enact the Karnataka Industries (Facilitation) Act, 2001.

Mr. B. S. Patil, Principal Secretary, Industries and Commerce, said the objective of the new regime of simplified rules, was to promote market-driven, efficient and competitive industries, provide a simple, responsive and transparent regulatory framework, facilitate timely completion of projects, make it easy to do business, reduce transaction costs, encourage self- certification and strengthen real-time response to the market.

Mr. Gurucharan, Commissioner for Industries, said industries coming under the non-polluting and non-hazardous categories would be on a fast-track basis. If clearance was not obtained in 35 days, entrepreneurs could submit self- certification to comply with the provisions of the applicable Acts and commence business without waiting for formal approvals.

Polluting and hazardous industries would continue to be governed by the normal provisions of approval/inspection.

The number of registers to be maintained by entrepreneurs would be reduced from 27 to three, the number of applications from 14 to one and the number of inspections from 37 to three.

For industries on the fast-track and self- certification mode, inspections would be based on random sampling technique generated from a computerised data base. All agencies, including the KIADB, the urban development authorities and the local bodies would adopt common building by-laws. A Bill had been moved to provide legislative backing for the constitution of industrial townships. Various fees and charges under the Karnataka Town and Country Planning Act and the Rural Development and Panchayat Raj Act were being reviewed for rationalisation, he said.

Deputy commissioners would be permitted to approve proposals for purchase of up to 10 units of agricultural land, based on the recommendation of the single-window agency or the high-level committee, and the urban development authorities would be permitted to accord approval for change of land use, he added.

Mr. Deshpande said it had been decided to organise a vendor development exhibition in Hubli in December for outsourcing of products for small-scale and medium-scale industries.

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Section  : Southern States
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