Ktaka 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 the state government to frame basic policy to establish industrial estates under public-private partnerships.

Speaking at an interactive meeting with state SSI minister Katta Subramaniya Naidu, KASSIAs president Harish P Hegde said that SSI minister has taken steps to set up industrial estates under public-private partnership. The minister along with the industrial associations has identified land for the purpose. The Peenya and BANSSIA industrial associations have come forward to set up private industrial estates under their initiative.

The government has taken positive view on this development, he said adding that 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. KASSIA has agreed to be the facilitator of these projects across the state.

Listing out Kassias other demands, he said that the restoration of One Time Settlement scheme (OTS) would help the entrepreneur to raise additional loans from the banks.

KSSIDC has been auctioning sites in the industrial areas. Under this arrangement, KASSIAs vice president R Prithvi Raj said that the highest bidder takes the land and it need not necessarily be an industrialists or for an industrial purpose, leading to several controversies. While urging for a fresh look at this policy, Mr Raj has demanded the government for the stamp duty exemption for registration of lands and sheds purchased from government agencies.

He also said that the cost of land allotted by KIADB should not exceed 10% of the original tentative cost. In addition, he appealed to the SSI ministry to form a committee to study sickness in the small industry and also for rehabilitating various units.