Source: Daily Hunt
The cabinet, which met on Thursday, approved the Karnataka Industries (Facilitation) (Amendment) Bill, which seeks to exempt industries from obtaining permissions from multiple agencies for the first three years. Karnataka is the first state to amend the longpending industrial reform to boost investment across sectors. Investors just need to submit a proposal to the Karnataka State High Level Clearance Committee (SHLCC) to start an industry or enterprise.
“An acknowledgement letter from SHLCC is enough to start operations,” said industries minister Jagadish Shettar, dubbing it a revolutionary land law in the country. The government, however, will not wait for the bill to be passed in the assembly, but will soon promulgate an ordinance for implementation. Shettar said Gujarat, Rajasthan and Kerala have similar laws, but they are applicable only to micro, small & medium enterprises (MSMEs). The proposed law, Shettar said, is expected to enhance the ease-of-doing business and give a big boost to investments, besides providing relief to entrepreneurs, who otherwise have to run from pillar to post to get sanctions.
The investor will get a leniency period of three years for obtaining all required licences, including building permits, certificate from the pollution control board, and other permits to obtain electricity and water connections. The minister said the new law will remove administrative hurdles being faced by investors under the existing system and expedite implementation of projects. “It used to take minimum three years for an industrial unit to start operations after taking approvals. The new law will help save time and result in quick employment generation,” Shettar added.