Karnataka to set up industrial parks under PPP umbrella

Bangalore, May 17 | Updated: May 18 2006, 05:30am hrs
Karnataka Small Scale Industries Association (Kassia) has demanded that the state government should frame a basic policy to establish industrial estates under public-private partnerships (PPP).

Speaking at an interactive meeting with small scale industry minister Katta Subramaniya Naidu, Kassia president Harish P Hegde said Mr Naidu has taken steps to set up industrial estates under PPP.

The minister has identified land for the purpose. The Peenya and Banssia industrial associations have come forward to set up private industrial estates under this initiative.

Mr Hegde said Karnataka Industrial Area Development Board (KIADB) should acquire land and Karnataka Small Scale Industries Development Corporation (KSSIDC) should serve as the nodal agency for such industrial estates.

KSSIDC has been auctioning sites in industrial areas. Kassias vice president R Prithvi Raj said while the highest bidder gets the land, he may not be an industrialist or use it for an industrial purpose, leading to controversies.

While urging for re-look at the policy, Mr Raj has asked the government for stamp duty exemption for registration of lands and sheds purchased from government agencies.

He said the cost of land allotted by KIADB should not exceed 10% of the original tentative cost.