Karnataka approves new industrial policy to reserve 70% jobs for locals
The Karnataka cabinet on Thursday approved a new industrial policy for 2020-2025 in which it said it aimed to ensure that 70% overall employment in all fresh investments go to local Kannadigas. Announcing this, industries minister Jagadish Shettar said that the policy aimed to attract investments worth Rs 5 lakh crore and to create employment opportunities for 20 lakh people.
The new policy also aims to ensure that Karnataka reaches the third position in merchandise exports over the next five years from its current fifth position. Shettar also said the state was aiming at an industrial growth rate of 10 percent per annum, even as it looked at promoting industrial activity in Tier 2 and Tier 3 cities outside of Bengaluru.
The policy also provides for an amendment to the Factories Act 1948, to allow women workers to work during night shifts as well as allow overtime working to be extended to 125 hours per quarter.
The industries minister said that investment promotion subsidy to micro and small enterprises based on the turnover would be provided at 10% of turnover in each year for a period of 5 years, they would also be provided an exemption of stamp duty, and concessional registration charges apart from reimbursement of land conversion fee.
For medium, large and mega enterprises the investment promotion subsidy based on the turnover would range from 1.75% to 25% for a period of 5-10 years.
The new policy also allows development of private industrial parks. Karnataka had last announced an industrial policy in 2014.