On 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.
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.
Governor: Vajubhai Vala