Dynamic City-Regions in India Presentations for five (5 ... - Unido

everyday. As a result, offshore seen as an adventurous, though desirable, and would necessitate cities to
market themselves well both in India and overseas. Now the offshore is becoming a necessity for businesses
that want to maintain their competitive edge.
1. Policy issues
The main objectives of Industrial Policy 1996 is to active participation of Industry in the development of
infrastructure. It also emphasis on development of potential growth centres, thrust for growth in the export of
value added goods, encouragement of utilisation of Non-conventional energy sources and co-generation, and
encouragement for improvement in productivity, R & D and quality upgradation etc. The State has been
classified into three zones:-
Zone-I : Developed Areas: Bangalore South & North Talukas and Bangalore Urban Agglomeration
areas as per 1991 census
Zone-II : Developing Areas:
Zone-III: Growth Centres:
All the remaining parts of State -173 TALUKAS
Growth Centres at DHARWAD, HASSAN & RAICHUR. Proposed Mini
Growth Centres at BIJAPUR, MALUR-KOLAR District,
CHITRADURGA, CHIKMAGALUR, NIPPANI, GADAG and
BELLARY. Ancillary Complex at THORANAGALLUM BALLARY
District and such other areas as may be so declared by Government in
Commerce & Industries Department from time to time.
After liberalization of Economic Policies, private sector has shown interest in investing in infrastructure areas
like: Airport of International Standards near Bangalore, Information Technology Park, Bangalore-Mysore
Express Highway and several other power projects under implementation in the State. In order to further the
investment flows to infrastructure areas the following measures are undertaken:
1. Govt. acquire/allot lands for such projects for entrepreneurs who may need to purchase land,
2. Govt. considers such projects on BOO/BOOT /BOLT concepts,
3. To enhance economic viability of such projects, a package of incentives is considered on a case-to-case
basis, based on merits of each case,
4. Environment: Establishment of a common effluent treatment plant in association with the concerned
polluting industries, and provision of suitable facilities/area for dumping/disposal of solid wastes
generated within the industrial areas/estates;
5. All Export Oriented industries with a minimum export turnover of 25% of the total turnover will be
classified as Thrust Sector Industries eligible for Special Scale of Incentives,
6. For Export Oriented Industries in the SSI Sector a scheme of Market Development assistance was
formulated to provide financial assistance for developing Export Markets,
7. Utilization of non-conventional energy sources and co- generation is encouraged,
8. Marketing assistance programme was developed,
9. In order to give an impetus for growth of certain sectors of industries for which the State has significant
resource/technology base, 100% exemption from payment of stamp duty and registration charges are
available to the industries, which classified as key projects in core areas,
10. All 100% Export Oriented Units will receive: 1) Investment subsidy, II) Exemption from power cut, III)
Exemption from payment of Entry tax and IV) subsidies payable on purchase of raw materials, packing
materials, capital goods, spares, material handling equipment, intermediates, semi finished goods, etc…
• Emergence of software policy
To make use of the low cost expertise available in India and to avoid the expense of time and cost in travelling
abroad, the government of India set up the first Computer Policy of 1984 and Software Policy of 1986, which
emphasized the concept of software development and export through data communication links. The objective
of this policy was to enhance the development of software industry in India using Indian expertise on
sophisticated computers, which were being imported duty free. As per the policy, companies were allowed to
establish data communication links by their own initial investments.
2. Incentives and resources
• General Incentives
Special measures were made as incentives. There are: Entry tax exemption, Exemption from stamp duty &
concessional registration charges, Investment subsidy, Marketing assistance for the SSI sector, Mega
industries, Relief package for revival/rehabilitation of sick industries, Special concessions for export, and
Waiver of conversion fee for converting lands from agricultural to industrial use.
• Fiscal/Financial Incentives
1. Karnataka State Industrial Investment & Development Corporation Ltd., and Karnataka State Financial
Corporation formulated a special package for providing financial assistance to the Information Technology
Industry. This package has the following features:
a. Equity contribution in small &medium enterprise;
21