1.26 The details of other agencies- activity-wise are given below:

A. Land

  1.27 KUM helps entrepreneurs to identify, short list and decide the location, depending on the products and other parameters.

Consequent to the enactment of Karnataka Industrial Areas Development Act, 1966, Karnataka Industrial Area Development Board (KIADB) came into being in the same year. It is a specialized exclusive agency of the Government of Karnataka not only to acquire private land and form industrial areas but also to provide land to stand alone industries.

  1.28 From its inception the KIADB has acquired about 31,000 acres of land and formed 108 industrial areas spread all over Karnataka and has also made available land to 350 stand-alone industries.

KIADB has played a very important supportive role in the establishment of almost all major industries in public and private sectors in the State.

In the industrial areas developed by it, the KIADB basically provides good roads, water and electricity. To ensure adequate and uninterrupted supply, water is pumped to all the major industrial areas from river sources and to smaller industrial area, water is supplied from bore or tube wells. Karnataka Power Transmission Corporation Limited and five regional Energy Supply Companies provide electricity to all the industrial areas.

   1.29  KIADB so far has developed major industrial areas at Peenya, Bommasandra, Electronic City, EPIP - Whitefield in Bangalore . Further, the Board has also developed industrial area at Baikampady in Mangalore, Kanabargi & Honaga in Belgaum, Hebbal in Mysore and Growth Centres at Dharwad, Hassan and Raichur. Water Supply Schemes have been implemented at Dharwar, Hassan, Thandya ( Mysore ) of capacity 5 MGD each, from perennial river sources. In addition, a number of smaller industrial areas have been developed in other parts of the State. KIADB is involved developing SEZ at Hassan, Sector specific SEZs, Food and Agro Technology Parks, Apparel Parks, Textile Parks and such other specialized infrastructural facilities (for more details visit: www.kiadb.kar.nic.in ) .

   1.30 Karnataka State Small Industries Development Corporation [KSSIDC] is another organisation of the Government, providing ready-built industrial sheds for the use of investors. The Corporation has so far developed about 3976 plots and constructed about 5750 sheds of different dimensions in 159 industrial estates throughout the State (for more details visit: www.kssidc.kar.nic.in ).

   1.31 Karnataka Electronics Industries Development Corporation [KEONICS] has developed " Electronic City" near Bangalore . Software Technology Parks of India (STPI), the Nodal Agency of GoI for Software Industries, functions in electronics city, Bangalore and similar STPIs are in final stage of completion in Hubli and Mangalore. The ITPL at Whitefield and many other similar Software Technology Parks created through private initiatives are in operation wherein ready work place of world standards are available for IT industries (for more details visit www.keonics.com and www.blr.stpi.net ).

  1.32 The investors may also locate their industries in private land. For this purpose, land is required to be converted for industrial use. Procedures prescribed under Karnataka Land Revenue Act / Rules and Karnataka Land Reforms Act and local area planning regulations need to be adhered to.

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B. Water

  1.33 In the industrial areas developed by KIADB, Industrial Estates of KSSIDC and similar specified areas developed by Government agencies, water supply is made available by the agency itself. In areas other than these, Bangalore Water Supply and Sewerage Board [BWSSB] arranges water supply in and around Bangalore . In other districts, Karnataka Urban Water Supply and Drainage Board will provide water supply depending upon its service area. Investors are also free to have their own water supply arrangements from surface / ground sources, wherever possible (for more details visit http://www.bwssb.org ).

C. Power

  1.34 In the entire State, the transmission of electrical power is looked after by the Karnataka Power Transmission Company Limited [KPTCL]. Since 1st May 2002, five independent power distribution companies are in existence in Bangalore, Gulbarga, Hubli, Mangalore and Mysore distributing power to consumers. The investors are required to apply to the jurisdictional executive engineers of these companies. Power supply will be of three types - Low Tension [LT], High Tension [HT] and Extra High Tension [EHT]. The safety aspects of power connection in case HT and EHT are taken care of by the Electrical Inspectorate. The safety regulations in the Electrical installation are required to be cleared by the Department of Electrical Inspectorate before execution of the electrical installations. Installation like HT & LT lines and cables, transformers, generators, lifts, Multi-storeyed Buildings, etc., requires the statutory clearances in the drawing before execution of the same by the Licenced Electrical Contractors Licenced from the State of Karnataka.

1.35 Investors are also permitted to have their own captive power generation arrangement of any fuel source like Bio-mass, Cogeneration, Windmill, Diesel etc. Currently, the electricity tariff for industries are Rs.1.80/ KVA of billing demand + energy charges @ Rs.3.80 /unit up to one lakh units and Rs.4.30/- above one lakh units consumed in a month + 5% Electricity Tax on above. The tax on such captive generation is governed by the provisions of Karnataka Electricity (Taxation on Consumption) Act, 1959. D.G. sets upto 12.5 KVA capacity, are exempted from payment of electricity tax only under self-consumption, but the installation of the same has to be informed to the Electrical Inspectorate. (for more details visit www.kptcl.com ).

D. Finance

  1.36 Karnataka State Financial Corporation [KSFC] and Karnataka State Industrial Investment and Development Corporation [KSIIDC] extend financial assistance to the industrial and such other ventures in Karnataka. KSFC provides term loans to new and existing units up to Rs.200 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 schemes, suitable for different kinds of entrepreneurs and projects. KSFC has fully decentralised its operations and the corporation has 7 Zonal offices, 3 Super 'A' grade branch offices, 12 'A' grade branch offices and 14 'B' grade branch offices.

  1.37 KSIIDC extends finance to the bigger projects solely or jointly with KSFC, commercial banks or any other financial institutions. KSIIDC is also acting as the Nodal Agency of the State Government to plan and promote industrial infrastructural development project and monitor specified mega projects during its implementation. KSIIDC also participates in joint stock companies by way of equity contribution. The Corporation has 4 zonal offices in the State (for more details visit www.ksfc.kar.nic.in and www.ksiidc.com ).

  1.38 National level financial institutions like Small Industries Development Bank of India [SIDBI], Industrial Development Bank of India [IDBI], Commercial Banks and private sector financial institutions extend the required financial / loan assistance to the investors (for more details visit www.sidbi.com and www.idbibank.com ).

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E. Technology

  1.39 The State has over 100 reputed national / state level research and development institutions. These R & D institutions are engaged in developing new technologies and offering the same to entrepreneurs. The State Government has promoted Karnataka Council for Technological Upgradation [KCTU] to help entrepreneurs to resource required technologies available, the world over. KCTU has brought out a CD ROM detailing the technologies available for sourcing. The details of R & D institutions and their area of specialisation may be obtained from CSIR Poly Technology Transfer Centre, Bangalore (for more details visit www.kctuindia.org ).

F. Consultancy

  1.40 Karnataka has a number of international, national and domestic consultants both at the individual level and as organisations. The Government has established Technical Consultancy Services Organisation of Karnataka [TECSOK] to provide expert consultancy to investors. TECSOK has a team of experienced consultants who can help entrepreneurs in project formulation and implementation. In addition to TECSOK, Micro, Small and Medium Enterprises Development Institute (MSME Development Institute) is also equipped to provide consultancy service to investors through its two regional offices and two branch offices. (for more details visit www.tecsok.com).

G. Human Resource

  1.41 The major advantage of the State is its human resource. The State has a reservoir of semi skilled and highly skilled manpower suitable for a variety of industrial assignments. The Centre for Entrepreneurship Development of Karnataka [CEDOK], a Government of Karnataka undertaking is involved in development of entrepreneurship among educated youth throughout Karnataka. The State also has large number of engineering colleges, medical colleges, polytechnics, ITIs, and other vocational training institutes. These institutes produce human resource of high calibre who can be gainfully employed in diverse types of projects. Investors may get the right candidates through annual campus interview at these institutions(for more details visit: www.cedok.kar.nic.in ).

H. International Trade

  1.42 Karnataka has a specialized agency viz., Visveswaraya Industrial Trade Centre [VITC] for promotion of international trade. VITC is providing institutional support to exporters and regularly monitors the needs of exporters. The centre encourages and coordinates participation of industries in international exhibitions and trade fairs and also supports visits of trade delegation through financial assistance. VITC has also developed a credible data base of exports from Karnataka (for more details visit: www.vitcblr.org ).

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Setting up an unit - step by step procedure.              

1.43. Entry level

• Contact Karnataka Udyog Mitra / District Industries Centres. Understand the salient features of Karnataka, its unique advantages and discuss about project identification, suitable location, human resources, approvals required, procedures involved etc.,
• In case of project proposals with investment more than Rs.3 crore, obtain Application Form from KUM for clearance from the State Level
• Single Window Clearance Committee (for projects with investment below Rs. 50 crore) or The State High Level Clearance Committee (for projects with investment above Rs. 50 crore).
• File the filled-in SLSWCC / SHLCC Application Form with KUM.
• KUM will process / scrutinize this Application Form and place the same either before the SLSWCC or SHLCC depending on the scale of investment of the project.
• Investors will be invited to attend the SLSWCC meeting, (to be convened generally on 3rd Monday of every month) and are required to make a presentation on the salient features of the project.
• In case of SHLCC, investors will have to present the project details initially before the Screening Committee and thereafter, before the SHLCC.
• Once the project proposal is cleared by the SLSWCC / SHLCC, KUM will issue a Combined Application Form (CAF) to facilitate investors to obtain required clearances / approvals from KIADB / Directorate of Factories and Boilers, Commercial Tax, KPTCL, BWSSB, KSPCB, local authorities etc.,
• KUM will scrutinize the CAF and forward the relevant portion to the respective departments / agencies.
• In case of any discrepancies / short comings, KUM / DIC will intimate the investors to comply with the same.
• KKUM will follow up with the respective departments / agencies on behalf of the investors and coordinate the required clearances / approvals.

1.44 Implementation level                                                                                                    

         To make necessary arrangements for taking possession of land allotted by KIADB after making payment.

• Apply for conversion of land into industrial purposes, if applicable.
• In case of purchasing agricultural land for industrial purposes by the non-agriculturalist, apply for permission from the respective Deputy Commissioner
• Execute lease agreement for the land.
• Obtain Consent for establishment from KSPCB and / or Environment Clearance Certificate (ECC) from State Environment Clearance Committee / MoEF, GOI.
• Prepare the building plan and obtain the approval of KIADB for the same in case of non factories.
• In case of factories, whether located in KIADB land or outside, the building plan and layout of plant and machinery has to be approved by the DFB.
• Place order for plant and machineries.
• Apply for term loan
• Get registered in the Dept. of Commercial Tax, especially to avail entry tax exemptions for procurement of plant and machinery and other inputs during the construction period if eligible .
• Apply for temporary power connection for construction and permanent power connection at a later stage. For permanent power connection, prepare the overall electrical scheme of the project with location of various equipments and obtain clearance of the drawings from the Department of Electrical Inspectorate, Government of Karnataka.
• Apply for water connection
• Obtain PAN from Income Tax department
• Make payment of taxes as assessed by the local authority like Village Panchayat, Municipal Corporation and local bodies.

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1.45   Operational Level

• Pay every year the lease rent to KIADB within the due date.
• Take an insurance policy and pay the premium for a value equivalent to the cost of the building / plant and machinery.
• Obtain absolute sale deed for the land after completion of lease period in case of KIADB land.
• Obtain Factory Licence from DFB before commencement of trial production.
• Renew the Factory License every year.
• In case of non-factories, coming under Karnataka Shops and Commercial Establishments Act, renew the registration once in 5 years or as the case may be.
• Obtain ECC from State Environment Clearance Committee / MoEF, GOI before implementation.
• Obtain Consent for Operation from KSPCB before commencement of commercial production.
• Submit environmental statement report for each financial year ending 31st March to KSPCB within 30 th September.
• Submit application for renewal of Consent to operate every year alongwith the fees.
• File quarterly and Bi-annual Returns to local Employment Exchange.
• Register the establishment with Employees State Insurance Corporation.
• Obtain PF code number from the Regional PF Commissioner.
• Register with Dept. of Commercial Tax with respect to various state level taxes.
• File monthly returns to Commercial Tax department.
• File monthly returns of generated units from captive generators in B & D form to the Department of Electrical Inspectorate.
• Register with Department of Legal Metrology and obtain certificate as Registered User.

1.46   Randomised inspections

   1.46 With the idea of ensuring compliance of all the statutory provisions of different Acts and Rules, the Department of Labour, DFB and KSPCB conduct random inspection of the establishments. This inspection is not intended for fault finding but to ensure compliance. To avoid repeated inspections by these departments at different levels and also to avoid discretional choice of establishments for inspection, a mechanism for randomized selection of the units for inspection has been evolved. Further, surprise inspections will also be conducted based on written complaints, with the approval of higher authorities. With the objective of imposing self discipline and compliance in the entrepreneurs, the concept of Self Certification is accepted both at entry and operational levels.

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