Government of Karnataka - Karnataka industry

INTRODUCTIONGovernment of KarnatakaDEPARTMENT OF INDUSTRIES AND COMMERCEANNUAL REPORT 2010- 2011Karnataka is considered as one of the most desired industrial location for settingindustries in the country. State has been consistently pursuing progressive outlook to meetthe changing needs of the State's economy and industry. Karnataka is also considered one ofthe country industrialists State comprising large public sector industrial undertakings, largeprivately owned industries like steel sugar, textiles etc., In recent times, Karnataka hasemerged as the leader in IT & BT and knowledge based industrial sector, making rapidstrides in IT & computer related industries and biotechnology with a strong research anddevelopment base. The State has a number of traditional cottage, Handicrafts, MicroEnterprises like Handlooms, Power looms, silk weavers, Khadi and village industries etc.,With all these, the State also felt the urgency of providing stimulus measures forindustries and service sector to combat the ill effects of the financial crisis prevailingglobally. The State is committed to initiate certain measures to provide temporary relief tothe industry and service sector to overcome the present situation.Karnataka Government with an objective of increasing GSDP, strengthening themanufacturing sector, generation of additional employment in different sectors, to promotediversified Industrial base and to reduce regional imbalances and also to increase the shareof exports from Karnataka in the national exports, has taken up number of initiatives likeNew Industrial Policy 2009-2014, State Special Economic Zone Policy 2009 and SuvarnaKarnataka Textile Policy, and Karnataka Mineral Policy.The main mission of Industrial Policy 2009-14 is to:1) To create environment for robust industrial growth2) To ensure inclusive industrial development in the State.3) To provide additional employment for about 10 lakhs persons by 2014.4) To enhance the contribution of manufacturing sector to the State’s GDP from thecurrent level of 17% to 20% by the end of policy period.Global Investors Meet 2010:Karnataka Udyoga Mitra was the nodal agency for the conduct of Global InvestorsMeet 2010 which was held during 3 rd and 4 th June 2010. The event was a grand success andthe State entered into MOU with 389 companies to facilitate their projects. These wouldbring an investment of Rs.3.92 lakh crores and would provide employment to 7.10 lakhspeople.Karnataka Udyoga Mitra is focusing on implementation of the projects, progress isbeing reviewed regularly and nodal officers have been nominated to assist the investors.Due to this consistent efforts, out of 389 MOU projects 17 projects are alreadyimplementation and 210 projects are under implementation.Annual Report of Industries & Commerce Dept. for 2010-11 1

Investment Subsidy:GOK has released Rs.25.00 crores in two instalments to the department to clear thepending investment subsidy of the SSI units. The said amount has been deposited in KSFC.The 1 st instalment of Rs. 15.00 crores has already been spent. Out of the 2 nd instalment ofRs. 10.00 crores, Rs.2,66,10,334/- is the balance amount unspent which will be released ina phased manner depending upon the proposals received from the Districts1) INVESTMENT APPROVALS:a) SHLC Clearance:During the year 2010-11, the State High Level Clearance Committee has approved186 Projects with an investment of Rs.1,87,185.70 crores with expected employmentgeneration to 580161 people.b) Small, Medium and Large Projects (SLSWCC Clearance):Hon’ ble Minister for Large & Medium Industries, Government of Karnataka is thechairman of State Level Single Window Clearance Committee (SLSWCC). The said clearsprojects with investments between Rs.3.00 crores to Rs.50.00 crores. SLSWCC during2010-11 has approved 439 Projects with a total investment of Rs.6879.64 crores. Theseprojects are likely to create employment to 110505 lakh people.Investment approval of SHLCC & SLSWCC in the State is as follows:300000292384250000200000170832194065INVESTMENT IN RSCRORES1500001000001022101104475000002006-07 2007-08 2008-09 2009-10 2010-11FINANCIAL YEARDistrictwise SLSWCC approval of projects are given in Annexure-1.Category and productwise details of projects cleared in SLSWCC are given in Annexure-2.The sectorwise SHLCC projects cleared are given in Annexure -3.The districtwise SHLCC approval of projects cleared are given in Annexure-4.Annual Report of Industries & Commerce Dept. for 2010-11 2

c) MSME Part II Registration:Annual target of 17,278 has been assigned for MSME part II registrations. As on31.03.2011, 18434 units have been assigned for MSME part II registrations. 18434 MSMEEnterprises have been registered with an investment of 120623 lakhs generatingemployment for 110070.District-wise Number of Entrepreneur Memorandum (Part-I) issued to Micro, Smalland Medium Enterprises is given in Annexure-5.District-wise Number of Entrepreneur Memorandum (Part-II) issued to Micro, Smalland Medium Enterprises is given in Annexure-6.2. INDUSTRIAL INFRASTRUCTURE DEVELOPMENT INITIATIVES:a) Karnataka Industrial Areas Development Board (KIADB):Karnataka Industrial Areas Development Board (KIADB) is a statutory body, playingan important role in development of industries in the state. Since inception, the KIADB hasdeveloped 136 Industrial Areas in 28 districts of the state covering an area of about40541.02 acres. In all the industrial areas developed by KIADB, basic infrastructuralfacilities like internal roads, water supply, power supply, street lights, common facilitiescenters buildings, housing and offsite infrastructure like widening & improvement ofapproach roads and among others are provided.KIADB has acquired an extent of 24674.25 acres of land for formation of Industrialarea and also in favour of Single unit complex during the period from 1-4-2010 to31/3/2011. The details are as under.Industrial area:Single Window unit complex11093.16 acres13581.09 acresDuring this year 783 units have been allotted 1670.92 acres of land in variousIndustrial areas.KIADB has also taken up implementation of “Suvarna Karnataka DevelopmentCorridor Project.” The Board has identified 35,272 acres of land for the project. M/s.Feedback Ventures Private Limited has been appointed as Project Management Consultant.b) Special Economic ZonesIn order to support and encourage development of SEZ in the State, State Policy ofSEZ 2009 has been announced. The policy provides for a package of incentives, supportivemeasures besides clarity in procedural guidelines.Special Economic Zones are being established to encourage exports and to attractForeign Direct Investments. Special Economic Zone is specially delineated duty freeenclave and shall be deemed to be foreign territory for the purpose of trade operations,duties and tariff.Annual Report of Industries & Commerce Dept. for 2010-11 3

SEZ Approvals:Govt.of India has granted formal/In-principle approvals to the State as below:Sl.NoApprovalsAreaHectaresProposedInvestmentIn croreEmploymentPotential(Persons)1 Formal Approvals - 56 2,676 33,785 11,09,1452 In Principal Approvals - 08 6,144 20,066 2,25,500• Out of 56 formal approvals, 45 are IT/ITES SEZs, 3 are BT SEZs & 8 are productspecific SEZs.• KIADB is developing four product specific SEZs viz Textile, Food processing andPharmaceutical at Hassan and IT-SEZ at Mangalore.Implementation of SEZs:• Out of 56 formal approval, 36 SEZs are notified in the Gazette of India.• 20 SEZs have commenced their 1 st phase of operation.• Investment in SEZs as on date is Rs.16,140/- crores and employment created to1,15,027 persons.• Exports from the SEZ units is mentioned below:Year Exports (Rs.in crore)2007-2008 1,673.002008-2009 7,608.002009-2010 10,248.002010-2011 18,500.00Total 38,029.00c) Karnataka Small Scale Industries Development Corporation (KSSIDC):KSSIDC has been a catalyst in the development of small scale industries in the State.Establishment of Industrial Estates, construction of Industrial sheds and formation ofIndustrial plots are the major functions of the Corporation. 160 Industrial Estates have sofar been established all over the State. In these Estates 5,758 sheds have been constructedand 5,498 sheds have been allotted.During 2010-11 KSSIDC has allotted 84 sheds/flats and 553 plots allotted.In the current year Industrial Estates are being developed at Pavagada- Tumkurdistrict, Sindanur- Raichur district, Shahabad – Gulbarga District, Sindagi- Bijapur district,Navanagara-Bagalkote district and Humnabad 2 nd stage- Bidar district.Annual Report of Industries & Commerce Dept. for 2010-11 4

d) Assistance to State for Development of Export Infrastructure and AlliedActivities (ASIDE)Since 2002-03, Ministry of Commerce, Government of India introduced a schemefor Assistance to States for Developing Export Infrastructure and other Allied Activities(ASIDE), based on the export performance of each State and also its growth rate. Theobjective of the scheme is to involve the States in the export effort by providing assistanceto the State Governments for creating appropriate infrastructure for the development andgrowth of exports.VITC is the Nodal Agency for implementation of ASIDE Scheme. The projectproposals received from implementing agencies for developing critical export infrastructurein the State will be approved by the State Level Export Promotion Committee (SLEPC) forASIDE, chaired by the Chief Secretary to Govt. of Karnataka as per the guidelines of theASIDE scheme.Export performance of the State is given in Annexure-7e) Food Parks :Food Karnataka Limited:Food Karnataka Limited (FKL) is a Special Purpose Vehicle (SPV) incorporatedduring April 2003. This was established for promoting Agro Food Parks in potentiallocations, setting up of Agro Export Zones and formulation of an exclusive policy for theAgro Food Processing Industries.FKL has participated in the Global Investor’s Meet and had conducted AwarenessProgrammes to attract the private developers for the establishment of Food Parks proposedin 6 locations i.e. at Bangalore (Rural), Tumkur, Shimoga, Davangere, Belgaum and Bijapurand also Spice Park at Byadagi in Haveri District.During the financial year 2010-11, State Govt has released 250.00 lakhs andRs.200.00 lakhs totaling to Rs.450.00 lakhs to FKL. Out of the said amount, FoodKarnataka Ltd. has released Rs.50.00 lakhs to M/s. Green Food Park Ltd., BagalkoteDistrict, Rs.50.00 lakhs to Jewargi Agro Food Park, Jewargi and Rs.41.30 lakhs to theDeputy Commissioner, Bijapur towards the acquisition of land for Bijapur Food Park.3. SSI & VILLAGE INDUSTRIES SECTOR INITIATIVESa) New Industrial Policy 2009-14 :GOK in its Order No. CI 233 SPI 08 dated: 28.2.2009 has announced New IndustrialPolicy 2009-14. The salient features of the policy are:• Envisions to make Karnataka prosperous through development of human andnatural resources in a systematic, scientific and sustainable manner.\• Target to provide additional employment for about 10 lakh persons in the nextfive years.• Efforts to increase the Share of Industry to the State GDP to 20% by the year2014.Annual Report of Industries & Commerce Dept. for 2010-11 5

• Focus on providing quality infrastructure across the State for the development ofIndustries.• State will allocate Rs. 1000.00 crore for acquiring 1000 to 2000 acres of land ineach district through KIADB. This will facilitate establishment of thousands ofsmall and medium enterprises. It is also proposed to attract foreign capital to theState Industrial sector by establishing industrial townships.• Implementation of Suvarna Karntaka Abhivrudhi corridor programme• Development of Sector Specific Zones viz., Steel, Cement, Sugar, Automobile,Food processing, Ready made garments etc.,• To motivate the prospective entrepreneurs, Guidance Cell in the DICs will bestrengthened. This cell will help entrepreneurs from the initial stage to theimplementation level.b) Kaigarika AdalathIt is a platform to find solutions to the problems faced by industrialists under asingle roof for promotion of Industrial and Economic growth in the region. All theconcerned Departments / Corporations / Boards / Associations and Industrialists broughtunder one roof. Kaigarika Adalaths were conducted at Bangalore, Belgaum and GulburgaDivisional Head Quarters and at Bangalore (Urban)Pre Adalath meetings were conducted involving all officials at the divisional /district level of concerned departments to arrive at appropriate solutions. This motivated allthe concerned to take a decision on the grievances and has resulted in considerable change intheir attitude towards the problems of industrialists. All the officials connected weremotivated to arrive with the solution to be announced in the Adalath.Some solutions to the grievances were announced at the beginning of the Adalath.Some solutions were found during the course of the Adalath. Announcement and assurancewas given by the Hon’ble Minister on the Adalath day on subsequently solving theremaining problems, which yielded many solutions to the grievances subsequently.Successive Adalaths have resulted in motivating the entire system. Motivation in turn hasled to enhanced ‘Investment Friendly status of the state. Continued Adalath programmeswill further motivate the system and improve the Investment friendly status of Karnataka.The details of Kaigarika Adalaths since inception at various Divisional levels is asfollows:Particulars Bangalore Dn. Mysore Dn. Belgaum Dn. Gulbarga Dn.Grievances Received 184 186 217 174Grievances Resolved 151 128 108 91Grievances underprocess33 58 109 83The cases within the policy of the State Government are resolvedAnnual Report of Industries & Commerce Dept. for 2010-11 6

4. INDUSTRIAL DEVELOPMENT INITIATIVESa) Kaigarika Vikasa:The scheme is being implemented for industrialization of 79 most backward andmore backward Talukas identified by Dr. D.M. Nanjundappa Committee on Redressal ofRegional imbalances. The scheme envisages creation of new economic opportunity byutilizing local resources. Skill and demand by providing ready to use infrastructure, humanresource development etc.,The following Developmental agencies have been identified for implementation ofthe programmes.i) KSSIDC and KIADB for development of New Industrial areas / Estates andupgradation of existing Industrial areas / Estatesii)iii)iv)KSPDC and KHDC: Construction of common facility centre, Living cumworksheds, Powerloom/ Handloom complex, modernization of machineriesTraining etc.,KSCDC and KSCCF Development of Coir Cluster and establishment ofTraining cum production Centre.CEDOK and TECSOK: Conducting of EDP/EAP, Skill developmentprogramme, Resource mapping etc.,Under the Kaigarika Vikasa Scheme, KSSIDC has taken up works such as formationof roads, construction of drain, deck slab, water system and allied works at PavagadaIndustrial Estate in Tumkur District and at Sindhanor in Raichur District.Out of the budget allocation of Rs.727.00 lakhs, Rs.692.59 lakhs has been releasedunder this scheme to the following Board/ sectoral corporations. The details are indicatedbelow.Sl. Implementing Amount releasedNo. Agency (`Rs.In lakhs)1 KIADB a) 29.59b) 98.00c) 177.002 KSSIDC a) 29.00b)106.00c) 100.00d)153.00TOTAL 692.59PurposeFor Development of Industrial Area atSanda Village of Shikaripura Taluk inShimoga District.For Development of Industrial Areas ofKolhar 2 nd stage in Bidar District, Bilagiin Bagalkote District and K.R.Pet ofMandya District.For construction of Sheds and providinginfrastructure facilities at Sindanur Talukof Raichur District.For development of 20 acres of IndustrialEstate at Pavagada Taluk, TumkurDistrict.For development ofIndustrial Estates atShahabad and Sindagi Taluk of GulbargaDistrict.Annual Report of Industries & Commerce Dept. for 2010-11 7

) Prime Minister’s Employment Generation Programme (PMEGP):Govt of India has launched the Prime Minister's Employment GenerationProgramme (PMEGP) on 24 th September 2008 by merging erstwhile two schemes PrimeMinister’s Rozgar Yojana (PMRY) and Rural Employment Generation Programme (REGP).The main objective of the Scheme is to generate the employment in Rural as well as inUrban areas through establishing Micro enterprises under manufacturing and service sectors.KVIC is the nodal agency at National level. The scheme is to be implemented by thethree agencies in State such as KVIC, KVIB and DICs in the ratio of 30:30:40. KVIC andKVIB are the nodal agencies to implement the scheme in Rural areas. DIC is the nodalagency to implement the scheme in both Rural as well as in Urban areas.The Target for the year 2010-11 for DIC agency and progress up to March 2011 is asfollows:TargetSanctionsNo ofProjectsMargin Money(Rs.in lakhs)EmploymentNo. ofProjectsMarginMoneyEmployment836 1158.40 8280 1245 2407.99 3728c) Vishwa:The major objective of the scheme is to provide continuous and productiveemployment in rural areas. Under this scheme training is given under industries and artisanactivities. 50% of capital grant for providing infrastructure facilities to training institutionswhich gives training to artisans. During 2010-11 a budgetary provision of Rs.15.00 lakhswas made. As on March 2011, Rs.15.00 lakhs has been released to the institutions whichare as follows.Sl. Name of the InstitutionNo.1. M/s. Deepak KhadiGramadyoga Kaigarika Sanga(R), Hirebidanur, GowribidanurTq. Chikkaballapur DistrictKSSIDC2. Karnataka State HandicraftsDevelopment Corporation3. Weaving Stone Machine Trust(R), Bommankatte, Badravathi,Shimoga DistrictAmountreleased3,07,4291,42,561Total 15,00,000PurposeFor infrastructure and forpurchase of machineries.Towards shed rent.9,57,000 To construct two living cumworksheds in multicraft complexof artisan village in Billavathagrama of Mysore District.93,000 For training in manufacturing ofCoir products.Annual Report of Industries & Commerce Dept. for 2010-11 8

d) Kayakanagara Programme:The programme contemplates a multi-craft township for traditional artisans likecobblers, bamboo workers, sheet metal and brass workers, pinjaras, tailors and such othercraftsmen, to provide living-cum-worksheds with infrastructure facilities for traditionalartisans who do not have site/house with infrastructure facilities. Under the first phase theconstruction of living-cum-worksheds were taken up in three districts viz.,Narendragrama(200) of Dharwad district, Ramadurga (59) of Belgaum district andHoovinahadagalli (89) of Bellary district, providing living cum worksheds to 348beneficiaries has been taken up.KSSIDC is taking care of providing infrastructure facilities like road, sanitation,street light, water supply etc., in the above three districts.A sum of Rs.160.73 lakhs has been released towards electrification works, Streetlight and borewells at Narendragrama in Dharwad district and Ramdurga in Belgaumdistrict. Out of Rs.160.73 lakhs released Rs.82.55 lakhs has been released to DharwadNirmithi Kendra for establishment of 7 Common Facility Centres and one exhibition centreat Narendragrama in Dharwad district.e) Establishment of New Industrial Clusters (SCP/TSP/SDP)Special Component Plan (SCP):Out of the budget allocation of Rs.940.40 lakhs, Rs.597.92 lakhs has beenreleased under this programme. Funds have been released to District Industries Cetres in theState, Dr.Babu Jagajeevan Ram Leather Industries Development Corporation Ltd.(LIDKAR), and Coir Corporation for construction of living cum worksheds, Supply of FreeTool Kits, working capital for purchase of raw materials and Distribution of Wayside Cabinsto SC artisans through LIDKAR.Tribal Sub-Plan (TSP):Out of the budget allocation of Rs.380.40 lakhs, Rs.207.00 lakhs has been releasedunder this programme. Funds have been released to District Industries Centres in the State,Coir Corporation and KSFC for construction of living cum worksheds to ST artisans, Supplyof Free Tool Kits, working capital for purchase of raw materials and towards Soft SeedCapital Fund released to KSFC.Special Development Plan (SDP):Out of the budget allocation of Rs.1000.00 lakhs, Rs.490.00 lakhs has been releasedunder this programme. Out of Rs.490.00 lakhs released Rs.180.00 lakhs has been releasedto KIADB towards development of Industrial Areas at Badanakuppe in Chamarajanagardistrict, Kudumalakunte of Gowribidanur Taluk and Aliabad of Bijapur district, Rs.60.00lakhs has been released to KSSIDC towards Development of Industrial Estate at Humnabadin Gulbarga District and Rs.250.00 lakhs has been released to Handloom and TextileDepartment for establishment of Readymade Garment Park in Gulbarga District.Annual Report of Industries & Commerce Dept. for 2010-11 9

5. HUMAN RESOURCE DEVELOPMENT INITIATIVES:a) Suvarna Kayaka Koushalya Abhivrudhi Yojane:This scheme encourages institutions to set up Specialised Training Centres in thestate through Public Private Partnership (PPP) Model. The scheme has twin objects ofincreasing the employability of educated unemployed youth by providing requiredvocational training and at the same time to provide ready to use manpower to the industrialand service sectors. Under this scheme financial grant up to 50% of the capital cost subjectto a maximum of Rs.200 lakhs will be provided to training institutes, in addition to this anamount of Rs.36.00 lakhs will be provided towards recurring expenditure during the initialperiod of three years.A sum of Rs.467.75 lakhs has been released to the following 8 number ofinstitutions:a) Rs.42.00 lakhs released to Bharatiya Rural Development Foundation,Hosur, Belgaum District towards establishment of training institute.b) Rs.98.00 lakhs released to J.S.S. Mahavidya Pitha, Chamarajanagar Districttowards establishment of training institute.c) Rs.56.00 lakhs released to J.S.S. Mahavidya Pitha, Mysore, towardsestablishment of training institute at Nanjangud Taluk.d) Rs.6.75 lakhs released to B.G.S.Sasyakashi, Bellur, Nagamangala Taluk,Mandya District towards recurring expenditure of training expenses.e) Sum of Rs.70.00 lakhs released to Sri.Dharmasthala Manjunatheswara.Educational Trust, Ujire towards building construction works.f) Rs.40.00 lakhs released to S.S.I.T, Tumkur towards building construction ofthe training institute.g) Rs.78.00 lakhs released to N.S. Infotech Ltd., Hubli towards purchase offurniture and machinery.h) A sum of Rs.77.00 lakhs released to M/s.Manduda Education Trust,Doddaballapura towards building construction works.b) Jewellery Training Institute:In accordance to the Budget Speech made in the year 2007-2008, it was proposed toestablish Jewellery training Institute at Bangalore and Karwar wih main objective ofproviding training to young artisans and also to provide advanced knowledge andprofessionalism in Gem & Jewellery activity.The scheme of establishment of Gem and Jewellery was primarily given to KSSIDCand during the year 2008-09 a sum of Rs.101.00 lakhs was released to KSSIDC forestablishment of Gem and Jewellery Training Centre at Karwar and Bangalore. KSSIDCcould not implement the scheme. Government of Karnataka has transferred theimplementation of the establishment of Gem and Jewellery Training Centre to GTTC videits order dt.19.10.2010.Annual Report of Industries & Commerce Dept. for 2010-11 10

In the year 2010-11, an additional sum of Rs.100.00 lakhs has been released toGTTC under the Specialised skill development institution schemec) Karnataka Institute for Leather Technology:Karnataka Institute for Leather Technology is an autonomous institute with the mainobjective of human resources development in leather technology.The institute main objectives are:‣ To develop Manpower & Skills in Leather Technology.‣ To provide quality education and specialized practical training in leathertechnology.‣ To provide implant training and orientation courses.‣ To motivate the incumbents for self employment ventures.‣ To provide common facility and infrastructure for use by individuals andindustries in the leather sector.‣ To provide assistance in computer aided design (CAD) and data development.‣ To co-ordinate with leather based industries in product development andmodernization of machineries.‣ To provide placement assistance to students and trainees.‣ To provide quality control and material testing facility to manufactures.The institute is imparting programmes such as 7 semesters Diploma course inLeather Technology, 10 months Diploma course in Leather Garment Manufacturing as perthe norms of Central Leather Research Institute, Chennai, 6 months course in Footwearmanufacturing and 6 months course in Leather Goods Manufacturing.During 2010-11, an amount of Rs.67.00 lakhs has been released to KILT for Design,Development, Research & for Training programmes.d) Government Tool Room and Training Centre (GTTC):Government Tool Room and Training Centre was established in the year 1972 atBangalore with the participation of the Karnataka State Government, in collaboration withthe Government of Denmark under the Bilateral Development Co-operation Agreement withproliferation of technology for development of the industries with supply of skilledmanpower being the key to meet the needs of the global requirements.The objectives of GTTC are:(a) To manufacture jigs, fixture cutting tools, gauges, press tools, plastic moulds,forging dies and other tooling for Small Scale industries advanced tool makingprocess using CAD/CAM techniques are to be adopted.(b) To provide training facility in tool manufacturing and tool design to generate awork force of skilled workers, supervisors, Engineers / designers etc.,(c) To work as a Nucleus Centre for providing Consultancy, information service,documentation etc;. for solving the problems related to tooling of industries inthe region.(d) Top act as a common facility centre for small industries and to assist them inproduct and prototype development.Annual Report of Industries & Commerce Dept. for 2010-11 11

Training Activities:The centre conducts specific long term AICTE recognized training courses such as• Diploma in Tool and Die making,• Diploma in Mechatronics,• Diploma in Precision Manufacturing,• Diploma in Electronics and Telecommunications,• B.Tech in Tool Engineering and Precision Manufacturing,• Post Diploma in Tool Design,• M.Tech in Tool Engineering.During 2010-11, Diploma in Tool and Die making course has been started inShimoga District’s Centre and B.Tech Degree in Tool Engineering and PrecisionManufacturing have been started in the Bangalore Centre.e) Science and Technology Entrepreneurs Parks (STEPs):The scheme of Science and Technology Entrepreneurs Park (STEP) mainly aims attargeting the young engineers and professionals coming out of engineering colleges,technical and management institutions with a view to motivate them and assist them inbecoming “entrepreneurs” to take up industrial ventures. STEP provides facilities forupgradation of skills and transfer of technology. 14 Science and Technology EntrepreneursParks (STEPs) have already been set up and functioning.f) Rural Development and Self Employment Training Institutes (RUDSETIs)Industrial policy 2001-06, has envisaged to establish RUDSETI in every district.The Department has supported the establishment of RUDSETI with the support of banks.Free training has been given by the RUDSETI under different schemes of the differentdepartment. Department is giving capital grant of Rs.20.00 lakhs per institution for creationof infrastructure facilities. During 2010-11, Rs.15.00 lakhs has been released upto the endof March 2011 progress is as under.Sl. Name of the InstitutionNo.1. Vibseti Haveri Institute,Haveri District2. Canara Bank RudsetiInstitute, DavangereAmount releasedPurposein Rs2,39,000 To complete theconstruction of the buildingfor Self employment andtraining Institute12,61,000 To complete theconstruction of the buildingfor Self employment andtraining Institute.Total 15,00,000Out of 20 acres of land at survey no. 57 belonging to the Sericulture Department, 2acres of land has been allotted on 33 years lease period to the RDPR Deparment for theestablishment of the RUDSETI at Tholahunsae village in accordance to the guidelines ofMinistry of Rural Development Government of India vide Govt. Order. CI 32 ICS 2009dated: 31.12.2009.Annual Report of Industries & Commerce Dept. for 2010-11 12

6. ARTISAN INITIATIVES:(a)The Karnataka State Handicraft Development Corporation (KSHDC):The Corporation is a nodal agency for handicrafts promotion programmes in theState. KSHDC is implementing various programmes for the development, promotion andmarketing of handicrafts, procuring directly from the artisans. The Corporation has 13 craftcomplexes and 1,222 living cum work sheds.1) Upgradation of Infrastructure in the KalaSankeerna of the Corporation and common facilityRs. 15.00 lakhsCentres2) Sanction of subsidy on the sales of scaresHandicrafts Products.Rs.10.00lakhs3) Subsidy on raw material (Silver & Zinc) toBidriware artisansRs. 12.00 lakhs4) Establishment and Management of DesignDevelopment Centre at Sagar-Rs. 5.00 lakhs5) Domestic Export Promotionand ExhibitionsRs. 5.00 lakhs6) Artisan Welfare Measures Rs. 300 lakhs---------------------Rs.50.00 lakhs---------------------b) Urban Haat:Govt. of India envisages setting up of Urban Haats at prime locations in the countryto enable the artisans to sell Handicrafts/Handloom products directly to the customers bycraftpersons/weavers Ministry of Textiles, GOI provides 70% of the cost of project subjectto maximum of Rs.210 .00 lakhs and the remaining 30% of the project cost up to Rs.90.00lakhs shall be borne by the State Gov/S.P.V.During 2010-11, A sum of Rs.280.00 lakhs has been released under Urban Haatscheme for the following purposes:‣ Rs.50.00 lakhs has been released towards Multi purpose permanentexhibition centre at Hubli - Dharwad.‣ Rs.50.00 lakhs has been released to KSHDC, Bangalore towards design andestablishment of Metro Hub at Freedom Park in Bangalore.‣ Rs.180.00 lakhs has been released towards Multi-purpose PermanentExhibition and Marketing Centre at Malnad in Shimoga District.Annual Report of Industries & Commerce Dept. for 2010-11 13

c) Handicrafts Gurukula Training Institute – ConstructionObjectives:‣ To act as centre of excellence to impart training in traditional crafts.‣ To enhance interest on craft amongst youth.‣ Capacity building and creation of Master Crafts persons.‣ Developments of traditional wood and stone crafts.‣ Facilitation for self employment through skill development.‣ Rehabilitation of local sandalwood artisans and their wards.‣ Effective utilization of existing facilities at Sandalwood complex.During 2010-11 Rs.50.00 lakhs has been released to Karnataka State HandicraftsDevelopment Corporation, Bangalore towards implementation of the “Shilpagurukula”scheme.d) Khadi & Village Industries Board:The main objective of the KVIB is to give priority for Khadi and Village Industriesin rural areas in developing and regulating Khadi sector and to provide assistance for thecottage Industries to generate employment opportunities to improve upon the economicstatus of the rural artisans.160 Institutions are working under Khadi sector, providing employment for 29000people, achieving production of 39.59 crores and sales worth of Rs.57.45 crores at the endof March 2010.The main activities of the organization are:i) Implementation of Prime Minister employment generation programmeii)Product development, design intervention and packagingiii) Khadi developmentiv) Kaigarika Vikasa.v) Rebate on retail sale of Khadi Productsvi) Bee-keepingRebate on retail sale of Khadi products:In order to promote the production and sale of Khadi and thereby to create more andmore employment opportunities in Khadi sector, the Central as well as State Governmenthas announced normal rebate of 10% by Central and 5% by State Government on retail saleof Khadi products throughout the year and special rebate of 15% for the year 2010-11.During the selected 108 days . Apart from this Government has extended incentive wageson par with wages earned by Spinning and Weaving Artisans.Annual Report of Industries & Commerce Dept. for 2010-11 14

During 2010-11, Rs.548.13 lakhs has been released to KVIB towards Rebate onsale of Khadi Products and this has been disbursed to 160 Khadi Institutions towardsIncentives to the Khadi Weavers. Khadi institutions are being benefited to carryout theuninterrupted Production and Sales activities, thereby ensuring continuous employment toartisans.e) Karnataka State Coir Development Corporation Ltd:The Corporation was established with the main objective of developing Coir sectorin the State. The main functions of the Corporation are to:1) Carry on the business of developing, promoting and stabilizing the coir andcoir based and coconut based industries in Karnataka2) To support, protect maintain increase and promote the production and sale ofcoir, coir products and coconut products3) To implement scheme of the Government of Karnataka and the Governmentof India for the development of coir and coconut based industries.4) To generate rural employment to women (including SC/STs) by providingtraining and engaging in production of coir products in the coir complexes5) To undertake and promote research and development of coir and its products.Financial & Physical targets and achievements during 2010-11Particulars Target Achievement %Sl.No.1 Sales (Rs in Lakh) 389.60 355.38 91.222 Production (Rs in Lakh) 275.00 224.00 84.453 Employment (Persons) 1200An amount of Rs.50.00 lakhs has been released towards repair and maintenance andmachineries and sheds of existing production sheds, electrification, exhibition and studytool, etc. Rs.41.46 lakhs has been released under the Special Component Plan / Tribal SubPlan for the construction of living cum worksheds to 35 SC/ST beneficiaries and towardsimparting training to 120 SC/ST beneficiaries in yarn and mat making.f) Karnataka State Coir Co-operative Federation Ltd:The Federation was established in the year in 1961 with the main objective ofdeveloping coir sector in the State through co-operative movement. Its main objective is toassist and support primary coir co-operative societies, provide training, marketing coirproducts, technical guidance & implementation of ICDP & Govt. sponsored schemes in coirsector. The Federation is having 17 sales outlets and 20 production units in different parts ofthe State. The Federation has provided employment to about 1200 persons in rural area outof which 90% are women. There are 51 coir primary Co-operative societies affiliated to theFederation. The manufacturing products are coir fibre, coir yarn, curled rope, fibre mats,different types of mattings, geo textiles etc.,Details of sales and production centers:Sales Emporia 13 Nos.Mobile Sales Vans 2 Nos.Training Cum Production Centres 13 Nos.Annual Report of Industries & Commerce Dept. for 2010-11 15

A sum of Rs.50.00 lakhs has been released towards training programmes, repairs &maintenance of existing production centers, for procurement of new machineries andmodernization of existing machinery in the existing production centers for infrastructuralimprovements and Conversion of Rural Feeder to Town Feeder at Dudda in Hassan districtto increase the rate of production. Out of Rs.50.00 lakhs released, Rs.25.00 lakhs has beenreleased towards working capital.g) Dr.Babu Jagjeevan Ram Leather Industries Development Corporation (LIDKAR)Karnataka Leather Industries Development Corporation Ltd, (LIDKAR) wasestablished by Government of Karnataka in the year 1976, keeping in view objectives ofoverall developmental Leather Industry in Karnataka and upliftment of Socio – Economicconditions of SC Leather Artisans in the State. The said Corporation has been renamed asDr.Babu Jagjivan Ram Leather Industries Development Corporation Ltd. TheCorporation has been implementing various programmes under developmental andcommercial activities.The Corporation has so far assisted 25000 Leather artisans by providing living cumworksheds, common facility centres, wayside cabins, training programmes and StudyTours, Celebration of Leather Craft Week and Presentation of Awards, etc.,The Corporation under Commercial activities has been extending MarketingAssistance for the products made by Artisans and SSI Units under the followingprogrammes:-(1) Sales through 23 Retail outlets through out the State under LIDKAR’s brand name.(2) Organising Exhibition-cum-sales in important places within and outside the state.(3) Supplies to Government Departments and Private and Public Sector Companies.(4) Apart from this Corporation has participated in National & International Trade Fares.So far, the Corporation has assisted 1200 Artisans and more than 100 SSI Unitsunder Marketing Assistance Scheme.New showrooms have been opened in Davangere, Mysore Zoo Opp., Recentlyshowrooms in Bangalore at Banashankari and HSR Layout, BDA Complex have beenidentified.Renovations of showrooms at Gulbarga, Raichur, Belgaum and Bangalore Majestichave been completed.7. INVESTMENT AND TRADE PROMOTION INITIATIVES:(a)Karnataka Udyog Mitra:KUM was established with a main objective of providing escort services toentrepreneurs for establishment of Industrial ventures in the State. It also acts as Secretariatfor State Level Single Window Agency Meeting. KUM organizes various publicitypropaganda programmes, Investors Meet, Road-shows to attract the Investors not onlywithin the State but also from abroad.Annual Report of Industries & Commerce Dept. for 2010-11 16

World Economic Forum at Tianjin, China:A delegation led by Hon’ble Chief Minister, Government of Karnataka, participatedin World Economic Forum at Tianjin, China during September, 2010. Leading entrepreneursfrom all over the world had participated in this eventInvestors Meet at Gujarat:Government of Karnataka participated in Investors Meet in Gujarat as a “PartnerState”. Special seminar was arranged on this occasion regarding investment opportunities inthe state. During this event 11 MOUs were signed with total investment of Rs.16,550 croresand also, entered into EOIs with 9 companies which would bring an investment of Rs.8210crores.Aero India Show 2011:Government of Karnataka participated in Aero Show 2011 organized in the month ofFebruary 2011 to particularly showcase the advantage of Karnataka in Aerospace Sector. Anexhibition was organized jointly with Karnataka Industrial Areas Development Board.During this event 6 MOU aerospace companies were singed with total investment of Rs.389crores and would provide employment for 1508 people. A dinner was arranged to theentrepreneurs who participated in Aero Show 2011. Hon’ble Chief Minister has participatedin the dinner meet and motivated the entrepreneurs for investment in KarnatakaVishwa Kannada Semalana at Belgaum:An industrial investment seminar was organized on this occasion of VishwaKannada Semalana at Belgaum to showcase the investment potential of the state.During the year 2010-11, Karnataka Udyog Mitra participated in the following Events /Trade Fairs to attract investment into the State.‣ Participated in AKKA Semalana at New Jersey in September 2010.‣ Participated in Global Business Leaders Forum at Malaysia in month of November2010.‣ Participated in India – Turkey – CIS – Business Forum at Istambul, Turkey.‣ Visited to UK to study and highlight the potential in Aerospace Sector in the monthof January 2011.‣ Participated in Indian ASIAN Business Fair and Business conclave and seminar onOpportunity India during March 2011 at New Delhi.‣ Participated in 8 th Knowledge Millennium Summit 2010 during November 2010 atNew Delhi.‣ Participated in India International Trade Fair 2010 during November 2010, at NewDelhi.‣ Participated in DEF + CONTRACT India and supply exhibition 2011 during March,2011, at Hyderabad.‣ Participated in various other national events to showcase the investmentopportunities in the State.Karnataka Udyog Mitra has been successful in promoting investments into the State.As per the recent study report of ASSOCHAM (Association of Chambers of Commerce &Industries, New Delhi), Karnataka has been ranked as No.1 in attracting investments in thecountry and as rated Karnataka as the most favorable investment destination.Annual Report of Industries & Commerce Dept. for 2010-11 17

) Visveswaraya Industrial Trade Centre:VITC is a registered society set up in 1965 with the main function of trade and exportpromotion It is engaged in conducting programmes in export management/ exportawareness/export documentation and allied assistance for the community of exporters. Alsotrade promotion activities are taken up in the form of participation in exhibitions and tradefairs both within the State and outside the State and abroad.VITC has organized the following programmes during the year 2010-111. Eight Awareness programmes at Bangalore, Gadag, Mysore, Hubli and in ShimogaDistricts.2. Four Export Management Training Programmes, of which Three in Bangalore andOne in Dharwad District.3. Three Export Training Programmes, of which Two in Bangalore and One inDharwad District.4. Four seminars/ workshops in Bangalore wherein 121 candidates participated.5. 2 Interaction MeetingsExport Awards:In order to reward the top exporters of the State for their excellent performance inExports and also to motivate other exporters to export more, VITC is presenting StateExport Awards on behalf of the State Government. Till date Export Awards have beengiven to exporters for their export excellents till 2004 Govt. Vide Order No. CI 56 SGT2004 has announced the guidelines for export awards and also Selection Committees forselection Committee for selection of exporters for awards. Special categories for WomenEntrepreneurs and SC/ST entrepreneurs have been included in the guidelines.State Level Export Awards awarded for year 2007-08 and 2008-09 on 16-7-2010 atBanquet Hall Vidhana Soudha, Bangalore for 86 beneficiaries.An amount of Rs.138.27 lakhs has been released to VITC for conducting the followingprogrammes.‣ Export Awareness ProgrammesIn association with the local DIC /Chamber of Commerce/ Industry Associationeight export awareness programmes have been conducted at Bangalore (3), Mysore GadagShimoga (2) and Hubli where in 810 beneficiaries participated.‣ Export Training Programmes:In association with Awake and EEPC Bangalore and UAS , Dharwad, three exporttraining programmes have been conducted where in 318 candidates participated.‣ Export Management Training Programmes:VITC conducted Four weeklong Export Management Training Programmes(EMTP), Three programmes at Bangalore and One programme at Dharwad wherein 121candidates participated.Annual Report of Industries & Commerce Dept. for 2010-11 18

‣ Exhibitions/Trade Fairs:Karnataka Pavilion in IITF 2010:VITC has organized India International Trade Fair 2010 on behalf of Government ofKarnataka at Karnataka Pavilion, Pragti Maidan, New Delhi, which was held from 14 th to27 th November 2010.About 200 Industries / Artisans & Traders of the States were participated in theKarnataka Pavilion. Sales during this exhibition were Rs.1.25 crores along with enquiries.8) TECHNOLOGY UPGRADATION INTIATIVES:Karnataka Council for Technology Upgradation:Technology upgradation initiatives are implemented through the Karnataka Councilfor Technology Upgradation. Karnataka Council for Technological upgradation hascommenced functioning from 1996. KCTU is a joint venture of Government of India,Government of Karnataka and Industries Associations. It functions as a Nodal Agency forTechnology Transfer to MSEs. The Council functions under the Chairmanship of theCommissioner for Industrial Development and Director of Industries and Commerce,Government of Karnataka.The main objectives of the KCTU are to enhance competitive status of SME’s,catalyse technology upgradation through acquisition, adoption and modernization and toreduce cost of productivity, quality improvement to make the SMEs products morecompetitive both nationally and internationally. It assists the SMEs to obtain ISO9001/14000 or any other Nationally and Internationally recognized Certification. TheCouncil is a Nodal Agency for creating awareness and provides assistance for registration ofIntellectual Property Rights, guidance in Plant Layout, diversification, modernization andexpansion..Total 28 Programmes for the year 2010-2011:• KCTU organized Seminars / Programmes for the benefit of MSEs on MSME CDP forthe benefit of Industrialists at different levels and Districts both on awareness anddevelopment of Clusters.• KCTU organized and conducted QMS Programmes for the benefit of Industries on ISO9001-2000, ISO Series Certifications and Product Certification viz.BIS Certificate &covering implications, awareness and necessity on WTO and IPR for the benefit ofIndustrialists in association with DIC and Industry Associations.• KCTU organised programmes on cluster development and KCTU Schemes, incentives onRWH; Patent; ISO/BIS, Technology Upgradation, TBI etc.• KCTU organized in association with MSME, KASSIA, PIA, FKCCI, CII, CLIKInformation and Awareness for the Industrialists on various subjects related to MSECDP, E-WASTE Management, Wireless Technology, Lean Manufacturing, IT Enabledsupply Chain Management etc.Annual Report of Industries & Commerce Dept. for 2010-11 19

KCTU participated in the exhibitions & displayedalso achievements and also in the Sadana Sammelanathe schemes & incentives and• 5 MSEs have been provided escort service and incentives for ISO-9000 seriesaccreditation certification• 1 MSE has been provided escort service and incentives for BIS certification forproduct manufacturing.• 4 Patent applicants have been assisted for filing of application and legal fees.CFC for Garments Cluster at Hubli by Women Entrepreneurs• Rs. 3.66. lakhs sanctioned and released to CFC for Garments cluster, Hubli out of theGoK contribution and• Rs. 62.34 .lakhs is already released as GoI Share in the 1 st installment directly to theSPV Account.Total Cost of the Project Rs.122.24 lakhs, Govt. of India Contribution Rs.103.90 lakhs85%, Govt. of Karnataka Contribution Rs.6.11 lakhs 5% and S.P.V. Contribution Rs.12.23lakhs 10%Industrial Infrastructure Upgradation Scheme GoIKCTU is the nodal agency for implementation of the following projects underMSME Cluster Development Programme of MSME Dept, Government of India.(1) Belgaum Foundry Cluster, Belgaum.The 4 th installment of Rs.13.05 lakhs sanctioned and released to Belgaum FoundryCluster.(2) MTMA BangaloreThe 4 th installment of Rs.39.00 lakhs sanctioned and released to MTMA, Bangalore.(3) Auto Cluster Hubli –Dharwad:The total project cost of the project is Rs.485.00 lakhs.GOI contribution is Rs. 339.50 lakhs 70%GOK contribution is Rs. 97.00 lakhs 20%SPV contribution is Rs. 48.50 lakhs 10%The State Government has released it’s entire share of Rs. 97.00 lakhs during 2008-09 and the amount is deposited in the “No Lien Account” opened at SBM, Vidhana SoudhaBranch, Bangalore. The SPV share of Rs.48.50 has been collected. Under the Chairmanshipof Joint Director, DIC, Dharwad purchase committee has been formed.Annual Report of Industries & Commerce Dept. for 2010-11 20

Implementing Institute: North Karnataka Small Industries Association, Hubli-Dharwad.(4) Common Facility Centre for Food Cluster at Gulbarga:The total project cost is Rs.23.00 lakhsThe GOI contribution is Rs.16.00 lakhsThe GOK contribution is Rs. 5.00 lakhsSPV contribution is Rs. 2.30 lakhsGovernment of Karnataka has released Rs.5.00 lakhs, Government of India hasreleased Rs.16.00 lakhs. SPV has collected it’s share of Rs. 2.30 lakhs and deposited in NoLien Account. Under the Chairmanship of Joint Director, DIC, Gulbarga, purchasecommittee has been formed.Implementing Institute: Sree Shakthi Mahila Abhivruddhi Institute, Gulbarga has30 self help groups9. ENTREPRENEUR DEVELOPMENT PROGRAMME INSTITUTIONSa) Centre for Entrepreneurship Development of Karnataka, Dharwad (CEDOK)CEDOK was established by Government of Karnataka with an objective tocontribute for the development and disbursal of Entrepreneurship by conducting variousEDPs, Skill Development programmes to expand the social and economic base ofentrepreneurial class.Main functions of CEDOK:• To augment the number of entrepreneurs through entrepreneurship, trainingand research• To Produce multiplier effect on opportunities for self-employment• To improve the managerial capabilities of small entrepreneurs• To contribute to the dispersal of entrepreneurship and thus expand the socialbase of the entrepreneurial class in urban/ rural areas• To be centre of learning for trainer-motivation on entrepreneurshipdevelopment.• To contribute to growth of entrepreneurship cultures, spirit andentrepreneurship developing countries.CEDOK is organizing the following Activities and Programmes.‣ One day Entrepreneurship Awareness Programmes‣ Two days Entrepreneurship Awareness Camps (EAC) for students.‣ 2/4/8 Weeks Skill based EDP.‣ EDP for PMEGP beneficiaries.Annual Report of Industries & Commerce Dept. for 2010-11 21

Highlights of 2010-11:During 2010-11, CEDOK has conducted 145 programmes and trained 8906candidates under various programmes viz., Entrepreneurship Development Programmes,Entrepreneurship Awareness Programmes, Skilled Development Programmes, ManagementDevelopment Programmes, Workshops Faculty Development Programmes, TrainersTraining Programmes etc.,‣ Towards improving the performance and efficiency of staff and Officers ofIndustries and Commerce Department, CEDOK has conducted three ManagementDevelopment programmes of 3 days duration.‣ Under sponsorship of Department of Science and Technology New Delhi, CEDOKhas organized two Faculty Development Programmes at Mangalore and Gulbarga‣ CEDOK has also organized 8 weeks Skill Development Programme under STST ofDepartment of Science and Technology in Mangalore, Davanagere, Belgaum, UttaraKannada, Hassan, Dharwad, Koppal, Udupi and Chickmagalore districts.Under Udyamiyagu Udyoga Needu Abhiyan of Government of Karnataka,CEDOK has successfully organized two Entrepreneurship Awareness Camps atBijapur and Gulbarga for final year degree students of Engineering, MBA andPolytechnics.• Under the sponsorship of Ministry Micro, Small and Medium Enterprises (MSME)of GOI, through PI –scheme of Ni-MSME, Hyderabad, and CEDOK has organized21 programmes like Entrepreneurship Development Programmes, EntrepreneurshipSkill Development Programmes in different trades.• Under SCP/TSP project, sponsored by Industries and Commerce Department(GOK), CEDOK has conducted 14 Management Development Programmes (MSPs)of 3 days duration.• Under Modernisation, Technology and Training scheme of Industries and CommerceDepartment (GOK) CEDOK has conducted Entrepreneurship DevelopmentProgrammes, Skill Entrepreneurship Development Programmes, EntrepreneurshipAwareness Camps, ICT trainings and follow-up meetings.• In view of the above CEDOK has been spearheading Entrepreneurship Movementthroughout the State and playing an important role in creation of self employmentand employment opportunities.b) Technical Consultancy Services Organisation of Karnataka (TECSOK)TECSOK is a multi disciplinary consultancy organization engaged in providingconsultancy services for entrepreneurs who wish to set up industries or service ventures inKarnataka. TECSOK provides basic information on potential products, suitable location,policy and procedures of the Government and other related organizations, incentives andfacilities offered by the Government to the entrepreneurs.TECSOK focuses more on promotion of Entrepreneurship amongst ruralEntrepreneurs and Entrepreneurs belonging to SC/ST/Backward Community and otherunder privileged classes utilizing various special schemes available for such entrepreneurs.Annual Report of Industries & Commerce Dept. for 2010-11 22

TECSOK also organizes Entrepreneurship Awareness Programmes,Entrepreneurship Development Programmes and Seminars/Workshops on current topics atvarious locations for the benefit local Entrepreneurs. Further, TECSOK participates invarious programmes organized by other agencies and counsel with Entrepreneurs.In addition to the services to Entrepreneurs, TECSOK is also providing professionalservices to various institutions and departments of State and Central Government. TECSOKoffers technical assistance on various aspects to the Department of Commerce & Industrieson regular basis, in addition to participating in the meetings of various committees of theGovernment.Details of activities / programmes conducted during 2010-11:TECSOK has counseled and assisted over 400 prospective entrepreneurs. Duringthe year, 55 project reports appraisals/ profiles have been prepared for entrepreneurs.TECSOK has finalized 8 sector profiles and 30 district profiles brought out during theGlobal Investors Meet.TECSOK has undertaken and completed 45 major assignments sponsored bydifferent agencies and government departments, including the following assignments. Theimportant are.‣ Project Report for Establishment of Rice Tech Park at Gangavati for APMC,Gangavati.‣ DPR for Establishment of Gurukula in Sagar for KSHDC‣ Proposal to seek support from GOI for Strengthening of Infrastructure of GTTC1) REIA Study for IT and ITES, Koorghalli, Mysore2) Facilitation for Selection of Even Manager, Media Partner & Knowledge3) TECSOK is coordinating the publication of Kaigarika Varthe, monthly bilingualMagazine of the department of Commerce and Industries Department.4) TESOK is the State’s Nodal agency of Ministry of Food Processing Industries,GOI for propagation of various promotional schemes of Agro Food ProcessingIndustries in Karnataka. During the year TECSOK has visited and preparedInspection report of 26 beneficiary units enabling them to avail the financialassistance sanctioned from the MFPI.10) Karnataka State Financial Corporation (KSFC):KSFC was established to meet mainly the long term financial needs of small andmedium enterprises of the State. The Corporation has extended sizable assistance toinfrastructure projects, mining, service sectors like transport, hospitals, hotels etc., Inaddition to, the term lending activity, Corporation also extends financial assistance undermerchant banking activities, hire purchase and corporate loans etc.,Particulars During 2010-11 Cumulative upto 31-03-2011No. Amount (Rs. Crores) No. Amount (Rs. Crores)Sanctions 1537 731.63 1,63,643 10,464.89Disbursals 580.41 8,228.25Recovery 586.71 10,803.87Annual Report of Industries & Commerce Dept. for 2010-11 23

An amount of Rs.174.00 lakhs has been released for providing Interest Subsidy forMSME units under Technology Upgradation Scheme.Out of the budget allocation of Rs.2320.00 lakhs, an amount of Rs.2319.29lakhs has been released to KSFC towards Principal and interest payment on bonds raised byKSFC for clearing backlog subsidy. So far the Corporation has been paid 14 th half-yearlyinstallments of interest up to 14-02-2011.11) Seminars, Training, Tours of Officers:Funds have been released to DICs towards study and training programmes,workshops conducted through TECSOK, training programmes to Officers and Staff of theDepartment conducted through CEDOK. A sum of Rs.60.00 lakhs has been released underthis sub-scheme.12) Modernisation & Computerisation of Dept.A sum of Rs.51.48 lakhs has been released towards modernisation of District leveloffices and Directorate office by providing computer systems, UPS, Printer whereverrequired and towards annual maintenance contract/repairs of office equipments, purchase ofcomputer, Stationery, Software development for online registration system and subscriptiontowards magazines and journals.*******Annual Report of Industries & Commerce Dept. for 2010-11 24

I. THE DISTRICTWISE SLSWCC APPROVAL PROJECTS:ANNEXURE-ISLSWCC APPROVAL PROJECTS – DISTRICTWISE – 2010-11DistrictNo of ProjectsApprovedInvestment inRs CroresEmploymentBagalkot 2 88.75 2750Bangalore Rural 147 2640.01 45867Bangalore Urban 36 722.29 17173Belgaum 9 242.09 2209Bellary 14 450.57 2277Bidar 24 144.88 2200Bijapur 11 104.13 717Chamarajangara 1 9.98 63Chikkaballapura 6 74 1031Chitradurga 1 24.77 60Dakshina Kannada 6 165.34 1308Davanagere 3 20.62 475Dharwad 39 429.13 6084Gulbarga 3 16.98 72Hassan 6 77.14 631Kodagu 5 103 932Kolar 10 116.86 840Koppal 5 122.6 603Mandya 2 27.46 372Mysore 8 201.33 3703Raichur 7 102.94 791Ramanagara 53 565.06 17708Shimoga 5 70.19 479Tumkur 9 167.71 1234Udupi 1 6.65 75Uttara Kannada 4 98.37 343Yadgir 24 183.89 1615TOTAL 441 6976.74 111612Annual Report of Industries & Commerce Dept. for 2010-11 25

ANNEXURE-IIII. THE CATEGORY AND PRODUCTWISE DETAILS OF PROJECTS CLEARED INSLSWCC DURING 2010-11SectorNo ofProjectsApprovedInvestmentin Rs.CroresEmploymentElectronics/ Telecommunications 28 350.49 4285Software / Hardware 17 258.62 6155Engineering 59 1016.03 10184Automobile & Aerospace 24 344.16 5386Floriculture / BIOTECH 5 44.16 424Food Processing 35 479.98 5080Granite/ Ceramics/ Glass 4 89.71 750Textiles 10 133.41 8655Plastic / Rubber 20 194.27 2964Pharmaceuticals / Chemicals 70 707.07 6635Cement Related 12 107.46 1214Sugar 2 63.14 555Distilleries / Breweries 1 36 115Petrolium Process 2 91 196Hotel / Tourism 47 1135.94 6593R D Centre 1 3.5 45Infrastructure Projects 15 211.81 4998Others 50 908.53 9923Power 8 227.93 824Software Parks 31 573.53 36631TOTAL 441 6976.74 111612Annual Report of Industries & Commerce Dept. for 2010-11 26

III. THE SECTORWISE SHLCC PROJECTS CLEARED DURING 2010-11ANNEXURE-IIISHLCC Projects Cleared Sectorwise (Investment above Rs.50 cr's)(2010-2011)Sector No's Investment Employment1 AEROSPACE 3 652.05 10452 AUTOMOBILES 3 6052.39 134803 BIO TECH 1 96.00 7284 CEMENT 7 11181.00 70745 CERAMICS 1 60.00 1406 CHEMICALS 1 650.00 10007 COKE 2 424.00 3448 EDUCATION 5 1978.15 50009 ELECTRONICS 3 898.63 725410 ENERGY 41 73344.10 2065111 ENGINEERING 5 713.32 342212 FOOD BASED 6 1354.23 355113 HEALTH 2 454.00 519814 INFRASTRUCTURE 23 10967.14 3891515 INTEGRATED TOWNSHIP 1 469.00 895716 IRON AND STEEL 32 37424.17 2245717 IT PARK 8 3422.97 14370618 OTHERS 9 2921.26 376819 PETROCHEMICALS 0 0.00 020 PLASTIC 0 0.00 021 SEZ 7 5602.60 11958022 SOFTWARE 5 3631.00 5700023 SUGAR 6 1333.06 187724 TEXTILES 4 1315.67 8507325 TOURISM 11 22240.96 29941186 187185.70 580161Annual Report of Industries & Commerce Dept. for 2010-11 27

ANNEXURE-IVIV. THE DISTRICTWISE SHLCC APPROVAL PROJECTS CLEARED DURING2010-11SHLCC Projects Cleared District wise (Investment above Rs.50 cr's)(2010-2011)Districts No's Invest in Crs Employment1 Bagalkot 7 11974.33 53932 Bangalore (Rural) 40 17500.70 2174693 Bangalore (Urban) 18 9162.36 1089934 Belgaum 13 15443.41 79795 Bellary 22 14551.81 79926 Bidar 5 3512.26 101657 Bijapur 7 16083.27 61688 Chamarajanagar 0 0.00 09 Chikkaballapur 3 18825.97 2098510 Chikmagalur 1 67.26 10911 Chitradurga 7 7272.55 281012 Dakshina Kannada 1 493.00 41813 Davanagere 2 6404.00 320514 Dharwad 0 0.00 015 Gadag 4 4902.13 183316 Gulbarga 5 5456.58 512317 Hassan 0 0.00 018 Haveri 5 6989.60 1492019 Kodagu 0 0.00 020 Kolar 4 769.80 681021 Koppal 7 12235.87 665222 Mandya 1 400.00 30023 Mysore 6 4241.62 5256124 Raichur 0 0.00 025 Ramanagara 5 1286.50 300826 Shimoga 1 79.07 7527 Tumkur 6 3905.97 3289828 Udupi 1 6930.00 50029 Uttara Kannada 2 730.00 109030 Yadgir 4 2935.00 1218Many Districts 8 8144.67 60087Yet to identify 1 6887.97 1400186 187185.7 580161186 187185.7 580161Annual Report of Industries & Commerce Dept. for 2010-11 28

DISTRICT-WISE NUMBER OF ENTREPRENEUR MEMORANDUM (PART-I) ISSUED TO MICRO, SMALL AND MEDIUM ENTERPRISES DURING 2010-11MANUFACTUREMICRO SMALL MEDIUM MICRO SMALL MEDIUMANNEXURE - VDistrict UNIT INV EMP UNIT1 INV1 EMP1 UNIT2 INV2 EMP2 UNIT3 INV3 EMP3 UNIT4 INV4 EMP4 UNIT5 INV5 EMP5Bagalkot 333 2316.2 4223 61 3090.27 1011 18 54.7 212 2 55 53Bangalore 2476 14295.37 17154 492 22029.39 9693 5 3744 713 875 3234.88 4528 173 3896 2353 1 300 34Bangalore Rural 152 1403.25 1734 93 5746 3062 3 1621 117 24 118.25 224 36 1771 1155Belgaum 1321 4936.73 8732 59 6355.46 1887 5 4070 558 196 383.54 1015 18 628 341Bellary 366 1982.08 3173 87 9970.63 2761 7 4600 369 31 129.18 227 6 187.5 94Bidar 268 2050.58 2188 50 5546.82 1942 1 695 236 106 276.881 413 7 222.93 254Bijapur 287 1802.15 2535 46 3856.81 837 55 124.76 325 25 1296.59 556Chamarajanagar 90 571.2 932 10 628.5 486 32 91.2 139 2 117 56Chikkaballapura 153 1007.35 1879 18 1038 1722 1 900 660 37 112.35 321 1 30 13Chikmagalur 326 1367.58 2411 11 643 466 1 600 40 40 100.3 164 5 324.5 203Chitradurga 331 1743 3084 1 34 210 1 900 100 94 230.8006 594DakshinaKannada 825 3230.52 6255 50 3077.11 1442 304 867.108 1764 30 874 618Davanagere 796 5807.33 7831 32 2444.4 825 64 261.61 418 4 75 56Dharwad 1265 5683.05 8267 83 8549.39 3804 1 200 130 208 522.07 1149 46 2084.44 1518 1 200.23 18DummyDistrict 1 502 757Gadag 401 678.3 2213 58 78 257 1 15 5Gulbarga 373 2860.55 2234 34 1904 375 25 77.6 112 7 185 38Hassan 262 1417.99 2467 18 1962 475 3 2050 572 26 115.05 165 2 65 25 1 300 30Haveri 293 1186.955 2304 16 1881 1103 147 229.87 494 7 152 60Kodagu 73 383.8 656 3 204 65 50 291 419 1 30 110Kolar 142 995.25 1512 22 1256 989 2 1250 68 22 70.8 98 5 84 46Koppal 107 823.09 1099 38 3620.1 1124 1 563 75 42 135.345 328 8 128 121Mandya 223 1471.51 3199 31 2204 1341 42 163.33 225 5 108.85 105Mysore 722 3617.32 5795 52 3344.5 1911 3 2100 470 241 600.5 1242 35 1182 614Raichur 191 1342.62 1773 132 17390.28 4202 6 4855 933 72 218.46 509 5 390.8 74Ramanagara 280 3062.19 4253 267 16595.73 8914 7 5203 1079 22 118.75 326 27 1008 576 1 400 75Shimoga 652 2186.34 4654 30 1742 930 168 388.23 1051Tumkur 833 4919.74 7396 131 9118.5 4088 117 562.1 724 12 586 648Udupi 476 2613.35 6216 43 2312.14 1467 69 169.4 371 4 98 39Uttara Kannada 558 1969.31 4269 10 601.5 328 1 760 70 101 233.61 612 1 15 21Yadigir 28 163 296 10 448 111 4 18.5 23 4 55 61Total 14603 77887.705 120734 1930 137593.53 57571 49 34613 6947 3290 9978.1746 18449 479 15664.61 9813 4 1200.23 157Annual Report of Industries & Commerce Dept. for 2010-11 29SERVICE

DISTRICT-WISE NUMBER OF ENTREPRENEUR MEMORANDUM (PART-II) ISSUED TO MICRO, SMALL AND MEDIUM ENTERPRISES DURING 2010-11MANUFACTUREANNEXURE - VIAnnual Report of Industries & Commerce Dept. for 2010-11 30SERVICEMICRO SMALL MEDIUM MICRO SMALL MEDIUMDISTRICT UNIT INV EMP UNIT1 INV1 EMP1 UNIT2 INV2 EMP2 UNIT3 INV3 EMP3 UNIT4 INV4 EMP4 UNIT5 INV5 EMP5Bagalkot 362 769.838 1510 8 320.61 97 26 21.15 92 1 20 10Bangalore 2818 14058.125 19016 344 18677.24 11166 7 4452 1658 392 1231.78 3467 142 4163.61 3235 3 897 98Bangalore Rural 148 403.62 722 25 2905.6 1120 2 1638 492 5 15 26 2 132 24Belgaum 1240 2558.02 5131 27 1890.5 693 1 700 122 433 184.91 1096Bellary 658 1348.61 3437 33 3344.34 716 1 501 90 133 111.818 447 3 160 23Bidar 52 264.74 329 8 596.25 189 51 91.56 225Bijapur 181 143.37 441 2 539 99 244 54.93 373 5 105.5 49Chamarajanagar 79 61.78 320 3 149 40 191 68.075 459Chikkaballapura 113 354.22 768 6 342 148 131 81.48 447Chikmagalur 407 347.02 1143 3 450.21 71 184 105 408 1 20 7Chitradurga 138 266.08 623 2 89 64 115 112.4 412DakshinaKannada 608 655.266 2003 30 2171 1434 2 1360 56 492 159.031 970 17 590.65 1012Davanagere 341 425.65 1202 17 2638.27 306 138 72.592 355 1 31 6Dharwad 732 1579.77 2846 35 3615.73 1369 147 160.28 444 10 502.73 241DummyDistrictGadag 268 164.17 969 8 10.1 38Gulbarga 81 602.05 399 20 908.22 206 352 142.03 924Hassan 460 416.54 1342 6 285.46 58 176 165.75 438Haveri 167 433.163 825 7 230.21 99 264 108.105 509 3 63 38Kodagu 40 79 232 26 92.75 183Kolar 86 519.21 698 17 1755 1156 1 944 109 155 145.78 492Koppal 124 471.39 1094 26 1895.05 477 285 107.45 732 4 61.31 55Mandya 174 387.95 820 7 340.96 159 239 218.61 737 1 24 4Mysore 380 1085.291 2018 54 5751.66 2107 3 2125 539 404 134.305 900 6 311 67Raichur 88 199.66 488 17 2080.9 251 219 94.67 491 3 82 43Ramanagara 284 866.91 1781 17 1590.8 564 5 3347.07 263 103 118.56 297 1 74 38Shimoga 547 438.16 2482 11 830 240 1 659 297 175 130.96 626 1 15.3 7Tumkur 593 1572.102 2654 44 4345.08 1274 1 838 127 226 256.86 735 1 16.27 4Udupi 202 1008.03 2719 21 1584.25 981 1 800 57 221 119.5 544 6 158.86 88Uttara Kannada 389 623.91 1574 4 206.06 64 32 34.88 96Yadigir 41 52.93 160 2 282.34 72 43 31.3 129 1 20 3Total 11801 32156.575 59746 796 59814.74 25220 25 17364.07 3810 5610 4381.616 17092 209 6551.23 4954 3 897 98

VITC,BangaloreEXPORT PERFORMANCE OF KARNATAKA STATE(Value Rs.in Crores)Sl.no Commodity 2005-2006 2006-2007 2007-08 2008-2009 2009-2010ANNEXURE-VII2010-2011(Apr-Dec) (prov)1 Electronics & Computer Software 42180.81 56478.16 69517.50 82153.00 90734.57 51393.002 Readymade Garments 4980.00 6773.00 4125.00 5395.00 5125.00 4284.003 Petroleum & Petroleum products 11912.00 11602.25 11232.00 11642.00 11041.41 15921.004 Engineering 3052.00 5461.00 8301.00 6185.99 4386.57 5137.005 Iron Ore and Minerals (incl granites) 5920.10 8791.32 10197.00 7274.77 4692.97 1909.986 Silk Products 1050.68 1273.94 912.12 896.87 701.56 504.007 Coffee Products 1103.94 1476.65 1307.60 1579.05 1423.10 1852.578Basic Chemicals, Pharamaceuticals and Cosmetics1018.63 1839.05 2069.76 2530.64 2760.91 1900.009 Agriculture and Processed Food Products 384.11 398.36 415.51 712.34 662.57 282.0010 Gem and Jewellery 5725.00 7799.11 9749.00 10892.66 17409.31 10300.4811 Cashew and Cashew Kernals 521.81 552.78 527.05 638.48 644.18 440.9912 Handicrafts 360.01 389.01 428.36 428.93 257.27 215.2113 Leather Products 214.59 218.05 201.28 213.90 193.97 133.0014 Chemicals and Allied Products 732.00 745.12 399.28 456.87 311.25 264. 3815 Marine Products 98.22 136.13 153.46 236.21 412.27 408.0016 Plastic Goods 1850.70 552.15 215.25 265.77 327.09 424.0017 Spices 169.98 219.72 245.15 479.25 381.73 325.8918 Wool & Woollen Products 124.86 140.03 147.59 153.25 144.39 91.2319 Miscellaneous and Others 880.16 2529.76 2559.52 2120.39 1261.29 2234.87Total 82279.60 107375.59 122703.43 134255.37 142871.41 97757.22***************Annual Report of Industries & Commerce Dept. for 2010-11 31