Date:17/07/2004 URL: http://www.thehindubusinessline.com/2004/07/17/stories/2004071701041900.htm

Back KCCI meet on development of Dakshina Kannada, Udupi districts

Our Bureau

Mangalore , July 16

MEMBERS of the Kanara Chamber of Commerce and Industry (KCCI) discussed issues such as problem-free taxation structure and problems of small-scale industries, with the Leader of the Opposition in the Karnataka Legislative Council, Mr D.H. Shankaramurthy, here on Friday.

Mr Shankaramurthy was participating in an interaction meet on `Projects and problems pertaining to commercial and industrial development of Dakshina Kannada and Udupi districts', organised here by KCCI.

Agreeing with the suggestions of the members that the Government could earn more revenue with a simple taxation system, he said that the taxation level has to be maintained at a reasonable level.

Apart from this, the taxation policy has not given attention on the development of the State. "We have failed in the economic policies in the five-year plans," he said, adding that goal and path are needed for the successful implementation of the policies. Though there were goals for the development of the State, there was no proper path for achieving the goals.

Stressing the need for a broader outlook for the development of the region, Mr Shankaramurthy said that correct political angle is essential for development. More than 70 per cent of small-scale industries in the State have stopped functioning because of the policies.

Referring to the Opposition for proposals on setting up mega industries in these districts, he said that people have to be convinced about the projects as they have bad memories of some of them taken up in the State.

The KCCI President, Mr R.D. Kini, who welcomed the gathering, said that the Chamber and Oil and Natural Gas Corporation are likely to sign an agreement on setting up a coastal special economic zone in Mangalore.

To this, Mr Shankaramurthy said that the Government of Karnataka should have only administrative control in the project. He quoted some examples where the State Government failed to invest money in some projects. As a result of this, funds granted by the Union Government lapsed. Mr Ahmed Bava, Vice-President of the Merchants' Association, Mangalore, said that there is high rate of sales tax on forest produce.