K’taka govt to come with new industrial policy, announces new scheme ‘MSME-Sarthak’

New Delhi, Feb 9 (KNN) A new Industrial Policy for attracting investment, new technologies and generation of additional employment in Karnataka will be rolled out keeping in mind the comprehensive development of industries, especially to priority sectors in the backward areas of tier-2 and tier-3 centers, said H D Kumaraswamy, Karnataka Chief Minister.

The existing 2014-2019 Industrial Policy will expire in September 2019, he added.

For the job creating Micro, Small and Medium enterprises (MSMEs), Kumaraswamy while presenting the budget announced a new scheme called ‘MSME – Sarthak’.

He said “To ease out the problems faced in this process, a new scheme called “MSME - Sarthak” will be implemented. In this scheme, a ready to use system will be created where quality raw materials, loans and advances, working capital and identifiable brand across the State will be provided."

In addition, to promote manufacture of ready to use goods by utilizing available raw materials in the State, a new comprehensive Coir policy, “Kalpavruksha Kayaka Niti” will be implemented, said Minister.

Under this policy 10% subsidy will be provided to the self-help groups to procure coir. Subsidy of 90%, subject to maximum of Rs.25 lakh, will be given for the self-help groups or private units establishing coir processing unit.

A subsidy of Rs.1 crore will be given to private industry undertaking manufacture of value added goods using coir. Coir clusters will be established to provide common facilities to the small and micro coir industries. To implement all the schemes, a grant of Rs.80 crore is provided, he added.

Also to facilitate manufacture of new design products in traditional industries, a design clinic will be established in collaboration with national level design institutes, said Kumarswamy.

In his budget speech, Minister said “Our Government is committed to achieve the target by promoting the manufacturing sector. In this direction, under a multipurpose scheme called the “Compete with China”, 9 industrial clusters will be established in 9 districts.”

In addition, he said that the vision groups have been constituted relating to such industries. Government is acting upon the reports of such vision groups.

Besides, he stated that the investors are coming forward to establish industries in Koppal, Ballari and Kolar districts. In the coming four and half years, we expect that 1 lakh in each district amounting to total 9 lakh employment generation will take place. To continue this scheme in the current year, Rs.110 crore is provided.