INDIAN STATE : KARNATAKA

Fact File

Advantage Karnataka

• Investor friendly Government- Simplified procedures, Fast Track approvals through Single Window Mechanism, and escort service from Karnataka Udyog Mitra.
• Salubrious climate, congenial environment, rich culture, cosmopolitan lifestyle, excellent health care and education facilities.
• Good connectivity and good logistic Support for investments.
• Good Infrastructure- availability of land, quality power and water.
• Excellent telecommunication network and optical fiber connectivity thought the state.
• Good law and order, best industrial relations and lowest man-days lost.
• Among the Country's top 5 industrialized states.
• Over 500 MNCs and 66 global fortune 500 companies doing business in the state.
• Presence of leading IT, Biotechnology, Electronics, Telecommunications and heavy machinery companies.
• Presence of More than 100 world-renowned high-end research and development organizations in the State.
• Highly skilled manpower base- large number of engineering colleges and Technical Institutions.
• First State to bring Industries Facilitation Act to ease the environment for doing business in the state.
• Among the fastest growing and largest markets in India.
  

Economic Infrastructure

Roads

Road network in Karnataka:

National Highways: 3728 Km
State Highways: 9829 Km
Major District Roads: 28247 Km
Other District Roads: 1634 Km
Village and Other Roads: 88154 Km

Power

Karnataka Power Corporation (KPCL), a public sector company, owned by Government of Karnataka is engaged in construction, operation and maintenance of generation stations in Karnataka. It is presently providing more than 70% of the needs of the State. It has built up expertise in the construction and operation of both hydro and thermal stations.

Generation:

The state owned generating company M/S KPCL and central sector establishments M/S NTPC/ NLC have already drawn up plans for establishing new generating units to meet the power requirements in the state. With the liberalization and opening up the power sector for private sector participation through policy initiatives by the Government of India and Government of Karnataka, the IPPs have also come up with proposals for establishing new generating plants in the state, to meet the state's additional capacity requirement.

Aviation

Karnataka has five functional airports at Hubli, Mysore, Belgaum, Mangalore and Bangalore.

In order to keep pace with the rapid development of Bangalore as India's leader in information technology, biotechnology and the services industry, the Government of Karnataka and the Airports Authority of India initiated a greenfield project-Bangalore International Airport Limited (BIAL). Bangalore International Airport Limited (BIAL) is a Public Limited company under the Indian Companies Act, formed to build, own and operate the largest greenfield private sector owned and operated airport in India- the Bangalore International Airport.

Bangalore Metro

The Bangalore Metro has all the components required for a successful integrated public transport system. It offers:

• Comprehensive connectivity
  
• Convenience
  
• Comfort
  
• Affordability
  
• Frequency
  
• Reliability
  
• Safety
  
• Aesthetics

The first phase of Bangalore Metro envisages a 33 Km elevated and underground rail network with 32 stations. The East-West corridor will be 18.10 km. long, starting from Byappanahalli and terminating at Mysore Road terminal, going via Old Madras Road, Indiranagar, C.M.H. Road, Ulsoor, Trinity Circle, M.G. Road, Cricket Stadium, Vidhana Soudha, Central College, Majestic, City Railway Station, Magadi Road, Hosahalli, Vijayanagar and Deepanjali Nagar.The 14.90 km. North-South corridor will begin at Yeshwantpur Terminal and terminate at R.V. Road terminal going via Mahalakshmi, Rajajinagar, Kuvempu Road, Malleswaram, Swastik, Majestic, Chikpet, City Market, K.R. Road, Lalbagh, South End Circle and Jayanagar. Out of the 33 km., 6.76 km. will be underground near City Railway Station, Vidhana Soudha, Majestic and City Market and most of the rest will be elevated.

Special Economic Zones (SEZs)

Special Economic Zones (SEZs) are specifically delineated duty free enclaves primarily to promote trade, deemed to be foreign territory for the purposes of trade operations, duties and tariffs. The scope for participation is broad based which allows any private /public / joint sector / FDI / State Government departments to establish SEZs.

Constantly on the path to making the ambience more conducive for investments and trade, Karnataka has been proactive in spearheading initiatives on the SEZ front.

The Government of Karnataka has been instrumental in driving growth through:

• Sector specific SEZ for Pharmaceuticals &
  
• Biotechnology at Hassan
  
• Sector specific SEZ for Food Processing and Agro-based industries at Hassan
  
• Sector specific textile SEZ at Hassan
  
• IT SEZ at Mangalore
  
• Coastal SEZ at Mangalore

The proactive steps taken by the Government has resulted in encouraging the establishment of SEZs for specific sectors like IT & ITES, Hardware, Apparel, Petrochemicals, etc, through both public/private initiatives, opening up growth corridors across various locations like Bangalore, Mysore, Mangalore and Hassan.

Institutional Framework For Industrial Promotion

Karnataka government has set up Karnataka State Financial Corporation [KSFC]

KSFC provides term loans to new and existing units up to Rs. 300 lakh in case of proprietary, partnership and joint Hindu family concerns and up to Rs. 500 lakh for corporate bodies and registered cooperative societies. KSFC has a number of tailor made schemes, suitable to different kinds of entrepreneurs and projects. KSFC has fully decentralised its operations and the corporation has 7 Zonal offices, 23 'A' grade branch offices, 16 B grade branch offices and 2 field offices spread throughout the State.

Karnataka State Industrial Investment and Development Corporation [KSIIDC]

KSIIDC extends finance to the bigger projects soley or jointly with KSFC, commercial banks or any other financial institutions. KSIIDC also participate in joint stock companies by way of equity contribution.

Further, national level financial institutions like Small Industries Development Bank of India [SIDBI], Industrial Development Bank of India [IDBI], Commercial Banks are extending required financial/ loan assistance to the investors.

Policy Framework

Karnataka New Industrial Policy 2009-14
For full text of the policy Click here

Industrial Policy 2006-11
For full text of the policy Click here

The Millennium IT Policy 2000
For full text of the policy Click here

The Millennium Biotech Policy 2000
For full text of the policy Click here

The Millennium BPO Policy 2002
For full text of the policy Click here

Karnataka Tourism Policy 2002-07
For full text of the policy Click here

Karnataka Grape Processing and Wine Policy - 2007
For full text of the policy Click here

Infrastructure Policy - 2007
For full text of the policy Click here

Karnataka State Mineral Policy 2008
For full text of the policy Click here

Investment Opportunities

Karnataka presents a plethora of investment avenues spread across diverse industry verticals spanning both products and services sectors.

With opportunities in virtually every facet of today's economy, the State is a veritable treasure trove for investors. Given the wide variety of options available, Karnataka has so much to offer to every investor.