Karnataka seeks Centre’s aid to keep up growth – EQ Mag Pro
Karnataka chief minister Basavaraj Bommai participated in the meeting chaired by the Union finance minister with the chief ministers of various states on Monday. Bommai also holds the finance portfolio of Karnataka.
The Karnataka government on Monday sought assistance from the Centre to keep the momentum of economic growth in the southern state, including a clear policy on forest and environment, special incentives for special sectors, institutional finance for new-age technology and speedy dispute resolution, among others.
Chief minister Basavaraj Bommai participated in the meeting chaired by the Union finance minister with the chief ministers of various states on Monday. Bommai also holds the finance portfolio of Karnataka.
“A clear policy on forest and environmental clearance is required. Special sectors need special incentives. Townships are being developed in SEZs, which require amendments to the laws of urban local bodies and rural local bodies to have better infrastructure in these areas. Banks have to be directed to finance new business sectors such as electric vehicles, med-tech and IOT (Internet of things),” the chief minister’s office (CMO) said in a statement on Monday, attributing it to Bommai.
The chief minister said Karnataka continued to attract higher foreign direct investment inflow in 2020 despite the Covid-19 pandemic. He said that the state amended key labour and land laws to attract more investments.
“The state contributes immensely to the economy of the country, the state’s largest research and development sector and expert human resources are the main contributors to the state’s inflow of investment,” the chief minister said.
He added that the Global Investor Meet, a biennial event that was last held in 2016, would be held next year.
The state is also trying to get investors to look beyond Bengaluru, the state’s economic and power capital, which continues to be the go-to destination for most businesses coming into Karnataka.
“Bidar and Kalaburagi airports in the state are operational and Shimoga, Raichur, Vijayapura and Karwar airports are expected to be operational by 2022,” Bommai said.
Karnataka is aggressively pursuing investors as it tries to make up for the reduction in the state’s share in goods and services tax as well as the devolution of taxes under the 15th Finance Commission.
Bommai said that speedy resolution of disputes outside of courts as well as relaxing coastal regulation zones is likely to help the state’s growth trajectory.
He said that a portion of the District Mining Fund should be handed over to the state government.
“This will help to repair the damage to other districts’ infrastructure by transporting the ore,” he said.
Source: PTI
