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Karnataka Becomes the First State to Amend Industries (Facilitation) Act for Small, Medium and Large-scale Industries

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Karnataka Amends Industries Facilitation ActOn 25 June, The Karnataka Government amended the “ The Karnataka Industries(Facilitation) act, 2002”, in the state cabinet meeting chaired by Chief Minister of Karnataka BS Yediyurappa, to facilitate and attract investment in the state.

Objective of the Act:-

The act helps to make simple regulations and procedures for requirements,creating an ideal environment for investment.

Highlights of the Act:-

  • An industry does not need statutory permissions for the first three years to set up operations in the state. Permissions like approvals under multiple state laws, including trade license and building-plan approval.
  • Promote ease of doing business and facilitate investors to invest in the state.

Background:-

The numerous procedures and clearances have resulted in delay of setting up industries resulting in huge economic toll and delayed investment to the state.

Note:- Gujarat and Rajasthan are the only two states in the country that have amended the act for small scale industries . Karnataka amended the act for small, medium and large scale industries. 

About Karnataka:
Capital: Bengaluru
Governor: Vajubhai Vala