The Hindu

• State’s new industrial policy to be launched by year-end 
• Banks told to be more liberal in financing industrial ventures
• Industrialists express concern over delays in ‘project clearance’

Mangalore, Aug 30: The industrial output in the State should grow three-fold in the next five year to meet the target fixed by the Government in its new industrial policy, scheduled to be introduced by this year-end. The State expects the industries to contribute 20 per cent to the Gross Domestic Product (GDP).

M. Satyanarayana Bhat, Deputy Advisor to Technical Consultancy Services Organisation of Karnataka (TECSOK), a State Government undertaking, told presspersons here on Friday that the State’s industrial output would have to reach Rs. 86,000 crore in five years if it were to constitute 20 per cent of the GDP. At present, the industry was growing at 17 per cent a year and in fiscal terms it was worth around Rs. 30,000 crore to Rs. 35,000 crore. The new policy proposed to generate about 10 lakh jobs, he said.

Mr. Bhat and M. Sujnana Murthy, joint director of industrial development, were here to hear the views of local industrialists on the proposed industrial policy. It was organised by Kanara Chamber of Commerce and Industry (KCCI). The two assured the industrialists that the draft policy would be revised, if necessary. “Suggestions of the industrialists will be received with an open mind,” they said. The industrialists sought for some radical changes in the policy to propel industrial growth. They said that the establishment of single-window agency for clearing projects had not yielded the desired result. Sumith Rao of the District Small Industries Association said the agency was not in a position to implement its decisions. Mr. Rao suggested that the policy should be sensitive to Western Ghats, which were among of the 14 bio-diversity hotspots in the world. Stating that banks were still hesitating to advance loans to industries he said that the financial institutions should be “educated” on how they could be “more liberal” in this regard. The industrialists sought a representation in the Karnataka Industrial Area Development Board.

Another industrialist, on the condition of anonymity, said that the entrepreneurs had to wait for several months to get clearance from the Karnataka State Pollution Control Board. Earlier, the district units of the board used to clear smaller projects. “This system has been withdrawn and all clearances should now be obtained from Bangalore,” he said. The Industry Department had been asked to set up a committee to find out unwanted checks in the system. An entrepreneur from Shiralakoppa said that the industrial policy should cater to the needs of small entrepreneurs who were mainly engaged in production of pickles. The production of pickles formed the largest food processing industry in the State and deserved to be promoted. It could be prepared to meet the standards proposed to be introduced in the Food Safety Act, he said.

Mr. Murthy sought to know whether the flight of capital from Mangalore to Kasargod (in Kerala) was real. An industrial replied that it was true.