|
PREAMBLE
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MISSION
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OBJECTIVES
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STRATEGY
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THRUST SECTORS
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POLICY FRAME WORK
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FACILITY
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PREAMBLE
|
-
The
ongoing proces of opening up of the Indian economy, changing Industrial and
trade policies over the last decade and the formation of WTO have together
given rise to stiff challenges as well as tremendous opportunities for Indian
Industry. While the challenges are the result of liberalised imports of raw
materials, components and finished products from across the globe in an
increasingly reducing tariff regime, the opportunities arise from the opening
up of the world markets for Indian industry.
-
The
Govt. of India has in the recent past, initiated a number of measures to
promote exports of both primary and manufactured products as also services.
Allocation of funds for export development by States, Export Promotion
Industrial Park Scheme, Critical Infrastructure Balance Scheme, Export
Intensive Area scheme, Market Development Scheme and setting up of Special
Economic Zones, in important locations are some of the initiatives taken by the
Govt. of India. The recent ASIDE (Assistance to States for Infrastructure
Development and Allied Activities) programme merges most of these initatives of
the Govt. of India under one head. Assistance under ASIDE can be utilised by
the State for development of infrasturcture related to promotion of exports.
Assistance under the scheme can also be used for EPIP and Special Economic Zone
projects. Allocation to the States under ASIDE is linked to export performance
of the State. The State Level Export Promotion Committee has been empowered to
sanction schemes under ASIDE. It is, therefore, necessary that the State fully
utilise the opportunities that are thrown open by the initiatives of the Govt.
of India and and formulates a comprehensive policy and appropriate strategies
for promoting exports from the State.
-
Karnataka
has a long tradition of overseas trade. Historically, Karnataka has been a
major exporter of commodities like Coffee, Spices, Silk, Cashewnuts,
Handicrafts and Agarbathies. In the last two decades the State has emerged as a
major player in the export of Engineering goods, Readymade Garments, Leather
goods, Chemicals, Minerals and Ores etc. Since the second half of the 1990's,
Karnataka has carved out a niche for itself in the global market place as the
knowledge and technology capital of the Country. The State has made rapid and
spectacular strides in the new exonomy. Information Technolgy, Bio-Technology
and State of the art Research and Development Institutions have given Karnataka
a pride of place as a frontier knowledge State in India. Indeed Karnataka has
emerged as a leader in the new economy in this part of the World.
| 4. |
India's
Merchandise exports during 2001-02 added upto Rs. 2,10,010 crores (US$ 43.99
billion)*, whereas Karnataka's total exports during the year 2001-02 were over
Rs. 20,000 crores. (US$ 4.12 billion) (provisional)** During the 9th Five Year
Plan period (1997-2002) Karnataka achieved remarkable growth in exports growing
from Rs. 8432 crores in 1997-1998 to over Rs. 20,000 crores in the year
2001-02. The average annual growth rate has been about 15% . Percentage share
of Karnataka in India's export today stands at about 7%.
|
| |
*Source:
Directorate General of Commercial Intelligence and Statistics, Dept. of
Commerce, Government of India.
**Source: DGCI & S. |
| 5. |
Details of Karnataka's
exports for last 3 years are:- |
|
|
(Value
Rs. In Crores)
|
|
Sl. No.
|
Commodity
|
1999-2000
|
2000-2001
|
2001-2002
|
|
|
|
|
|
(Prov)
|
|
1
|
Electronics &
Computer Software
|
6476.58
|
8825.92
|
11533.06
|
|
2
|
Readymade Garments
|
1508.22
|
2236.00
|
2820.00
|
|
3
|
Coffee Products
|
1183.93
|
957.53
|
881.42
|
|
4
|
Iron Ore and Minerals
|
779.51
|
678.75
|
691.56
|
|
5
|
Engineering
|
670.00
|
673.07
|
1048.07
|
|
6
|
Silk Products
|
521.24
|
772.39
|
672.24
|
|
7
|
Cashew and Cashew
Kernals
|
251.55
|
187.98
|
163.54
|
|
8
|
Chemicals and Allied
Products
|
223.33
|
184.81
|
201.22
|
|
9
|
Gem and Jewellery
|
215.10
|
218.85
|
281.05
|
|
10
|
Agriculture and
Processed Food Products
|
195.33
|
237.91
|
349.51
|
|
11
|
Basic Chemicals,
Pharamaceuticals and Cosmetics
|
193.62
|
293.63
|
320.24
|
|
12
|
Leather Products
|
146.23
|
238.37
|
237.64
|
|
13
|
Marine Products
|
87.36
|
94.25
|
85.76
|
|
14
|
Plastic Goods
|
75.09
|
67.90
|
83.07
|
|
15
|
Spices
|
61.00
|
73.74
|
69.12
|
|
16
|
Wool & Woollen
Products
|
43.71
|
31.22
|
44.46
|
|
17
|
Handicrafts
|
20.12
|
31.69
|
48.59
|
|
18
|
Tobacco/Beedi
|
16.25
|
3.23
|
2.70
|
|
19
|
Miscellaneous and Others
|
186.07
|
220.22
|
612.33
|
|
|
Total
|
12854.25
|
16027.46
|
20145.58
|
|
|
Total in US$
(Million)
|
2955.00
|
3446.77
|
4153.72
|
|
|
@ Exchange Rate
(Average)
|
Rs. 43.50
|
Rs. 46.50
|
Rs. 48.50
|
|
|
|
| 6
The twin forces of liberalization of Indian economy with opening up of the
Indian market and globalisation i.e. greater integration of the Indian economy
with the global economy, poses several challenges as well as opportunities. The
entire world today is one market place. The defining principle of international
trade today is competitiveness. The future of exports for Karnataka will be
predicted upon an intense interplay between the domestic policy environment and
the enormous external trading opportunities. Under the multilateral trading
regime, the ability of the State to sieze the opportunities that are opening up
in the global market will be driven primarily by the primacy of technology in
domestic industry, price and quality competitiveness and achieving global
standards in products and processes. The principles of National Treatment and
Most Favoured Nation governing the WTO regime will require the domestic export
community to aggressively compete with its counter parts in the rest of the
world.
|
| 7
The EXIM policy of the Govt. of India provides a national policy framework. At
the same time, the State Govt. needs to provide focused facilitation to enable
rapid growth of exports from Karnataka in sectors in which the State enjoys
competitive advantages. It is in this context that a policy framework to give
impetus to establishing best practices, providing for capacity building and
facilitating quality and competitiveness of domestic exporters becomes
critical.
|
TOP
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|
MISSION
|
| 8. |
Karnataka's
mission statement on exports is to facilitate the rapid and sustained growth of
exports from Karnataka and to increase Karnataka's share in all India exports
from the present level of 7% to 15% by 2007. This will be achieved by:
| i) |
Providing
an effective, proactive and supportive Institutional mechanism for the rapid
growth of exports. |
| ii)
|
Operationalising
sustainable medium term Export Promotion Sectoral Strategies. |
| iii) |
Building effective and
competitive export Infrastructure. |
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OBJECTIVES
|
| 9. |
In
achieving this Mission, the focus will be on the objectives set out below:
| a)
|
To
focus on existing exporting industries, and to provide them with necessary
support to give further boost to exports from these industries.
|
| b)
|
To
motivate Industries in Karnataka exporting through merchant Exporters in other
States to export directly.
|
| c) |
To
encourage industries/traders with products having good export potential to
enter the export field.
|
| d)
|
To
provide a conducive environment for motivating new export oriented units to
set-up their base in Karnataka.
|
| e) |
To
bring about technology and skill upgradation in the traditional export sectors
like Coffee, Silk, Textiles, Granites, Agarbathies and Handicrafts to enhance
value addition and quality competitiveness.
|
| f) |
To
enhance the export potential of non-traditional sectors like Electronics &
Software, Services, Bio-Technology etc.
|
| g) |
To
facilitate creation of hi-tech ITES clusters in different locations in the
State.
|
| h) |
To
encourage capacity building for consistently upgrading best practices in
exports.
|
| i) |
To
promote innovation for export of new value added products.
|
| j) |
To
increase the unit realization of exports through technical and design inputs,
modernization of production processes and skills.
|
| k)
|
To
provide institutional framework for developing pool of human resource talent in
specialized trades.
|
| l) |
To
provide a simple transparent and responsive regulatory environment for
unhindered growth in exports.
|
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|
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STRATEGY
|
| 10. |
In
order to achieve these objectives, the following strategy will be adopted:
| a) |
To
create a strong networking with Export Promotion Councils, FIEO, ITPO, NCTI,
and Product Sectoral Associations to give impetus to Public-Private
partnership.
|
| b) |
To
provide E-Governance support to exporters in Karnataka.
|
| c) |
To
establish a B2B exchange, which would facilitate even the small and tiny unit
in the State to take up online trading activity.
|
| d) |
To
create a strong analytical database on exports and exporters in Karnataka.
|
| e) |
To
promote Public-Private initiative in developing competitive export
infrastructure.
|
| f) |
To
setup an institutional mechanism in the State for promoting exports like State
Level Export Promotion Council, State Level Export Promotion Committee and
District level Export Promotion Committee.
|
| g) |
To
strengthen and restructure VITC as the Export Promotion Board of Karnataka,
which shall be the Nodal Agency to plan and execute strategies to sustain
Karnataka as a global hub for international trade.
|
| h) |
To
focus on catalysing competitive advantages the Karnataka has in the global
market by increasing its exports in Information Technology, Bio-Technology,
Food Processing, Electronics & Communications, Garments, Machine Tools and
Precision Engineering Goods, besides the traditional exports.
|
| i) |
To
identify sector specific support measures required for acceleration of exports
in sectors in which the State has competitive advantages and to encourage them
in consultation with the concerned sectoral association.
|
|
|
|
THRUST SECTORS
|
| a) |
Agricultural
& Processed Food Products
|
| |
Karnataka
is bestowed with 10 Agro-Climatic Zones and is capable of growing virtually and
agri/horticultural products. The annual production of Horticultural crops is
12.4 million tons and a variety of vegetables, fruits, flowers, spices and
herbs are grown. 66% of the geographical areas are under agriculture and the
area available for cultivation is 12.7 million hectares. The major crops
include maize, rice, millet, sorghum, spices, tobacco, cotton, coffee & tea
etc. Exports of agricultural & processed food products for the year
2001-2002 is Rs. 1549.35 crores (US$32 millions). The major contributing
products are coffee, cashew and cashew kernels, spices, fruits & vegetables
(onions, mangoes, potatoes), processed foods (mango pulp) and marine products.
In the recent years, export of vegetables like gherkins, rose onions etc., and
floriculture have gained significance. Exports from this sector are expected to
grow annually by 20%.
|
| b) |
Readymade
Garments |
| |
Readymade
Garments sector enjoy a pride of place in Karnataka. At present, the MFA
agreement with USA and countries in European Union has resulted in quota
restrictions in these countries. With the phasing out of MFA agreement and
implementation of agreement on textiles and clothing under WTO from 2005, this
sector will be freed from quota restrictions but will have to face global
competition. To equip the exporting industries in this sector to face the
changing trends in the international market, the Ministry of Textiles, Govt. of
India have already setup apparel training and design centers in various parts
of the country to equip the workers with latest technology in the field and
also obtain hands-on training. Exports of this sector during 2001-2002 is Rs.
2820 crores. (In addition, there is about Rs. 1300 crores of indirect exports
through merchant exporters/export houses of other states from the Industries in
Karnataka). (US$ 58 millions direct exports) Exports from this sector is
expected to grow annually by 30%.
|
| c) |
Electronics
|
| |
In
the electronics sector, a large number of exporting industries are present in
and around Bangalore and in Mysore. Over 300 of the world's leading electronics
companies are located in Karnataka. A substantial portion of exports is to
western markets. The products exported are industrial electronics,
telecommunication equipments and parts, consumer electronics, computer
hardware, electronic medical equipments, watches, transformers, control
instrumentation, components, aerospace and defence electronics etc. Exports of
this sector during 2001-2002 is ABOUT Rs. 1602 crores. (US$ 33 millions)
Exports from this sector are expected to grow annually by 30%.
|
| d) |
IT & BT
|
| |
Bangalore
is known as the Silicon Valley of India. State has the Software Technology
Parks of India at bangalore, Mysore and Mangalore. STPI, Hubli is under
implemetation. Over 1100 softwre companies registered with STPI's account for
Rs. 9903 crores exports (US$ 204 millions) during 2001-2002. North America
accounts for 69% of the total exports in this sector followed by European
countries at 29%. Exports from this sector are expected to grow annually by
40%.
|
| e) |
Engineering
Goods |
| |
A
number of engineering exporters are based in Bangalore, Hubli, Mysore, Belgaum,
Mangalore, Shimoga etc., in Karnataka. The products exported include
MachineTools, Industrial Machinery, Small & Cutting Tools, Castings,
Automotive components, Electrtodes, Welding Equipments, Construction and
Earthmoving Equipments, Helicopter Spares, etc. Exports of this sector during
2001-2002 is Rs. 1048 crores. (US$ 22 millions) Exports from this sector are
expected to grow annually by 20%.
|
| f)
|
Arts
& Crafts |
| |
Karnataka
has a rich variety of crafts, a considerable production base and a vast pool of
talented and skilled crafts persons. Training in production techniques, focus
on contemporary design and upgradation of craft clusters will constitute
initiatives to give impetus to handicrafts exports. This willl be done through
the Karnataka State Handicrafts Development Corporation, the NGOs, in the field
and Export Promotion Council for Handicrafts. The effort will be to reach an
export target of Rs. 150 crores in 2006-07 from the level of Rs. 40 crores in
2001-02.
|
| g) |
Minerals
& Mineral Based Products |
| |
The
Stage has a very wide and varied mineral resource. Mineral resources are
high-grade Iron Ore, Exotic Granites, Bauxite, etc. Export of Iron Ore and
Minerals has been in the order of Rs. 678 crores to Rs. 780 crores during the
last three years. The State will aim to increase the export of minerals and
value added mineral based products. Efforts will be made to achieve exports of
Rs. 1000 crores per annum of minerals and minerals based products in the next
three years.
|
| 12. |
In
collaboration with the sectoral export associations and in consultation with
the related industry bodies, sectoral mid-term strategies will be commissioned
to draw a road map to achieve the sectoral export targets envisaged. |
|
TOP
|
|
POLICY FRAME WORK
|
|
V(A) INSTITUTIONAL
MECHANISM FOR EXPORT FACILITATION
|
|
Export Promotion
Board of Karnataka
|
|
13.
|
Under
the Govt. of India, 29 Export Promotion Councils and Commodity Boards are
engaged in export promotion of products coming under thir jurisdiction. In
Karnataka, the Vivesvaraya Industrial Trade Centre (VITC) a registered society
functioning under the Directorate of Industries & Commerce is, at present,
the Nobal Agency for promotion of Exports of all products from the State. VITC
is regularly conducting Seminars/Workshops/Training Programmes related to
exports, organising/participating in Trade Fairs/Exhibitions both at the
national and international levels, sponsoring Trade Delegations abroad,
counselling exporters, resolving grievances of exporters etc., and is working
in close co-operation with FIEO, ITPO, Export Promotion Councils/Commodity
Boards, Customs and other related Central & State Govt.
Depts./Organisations to promote exports from the State.
It is
proposed to restructure VITC as Export Promotion Board of Karnataka which shall
be the Nodal Agency to guide and provide assistance to exporters as well as
facilitate in obtaining clearances from regulatory Departments and resolving
operational problems of exporters in Karnataka.
|
|
14.
|
The following Policy
making empowered Committees are functioning to facilitate the process of
exports in the State.
| a. |
The
State Level Export Promotion Council chaired by the Hon'ble Chief Minister,
Govt. of Karnataka.
|
| b. |
The
State Level Export Promotion Committee chaired by the Chief Secretary, Govt. of
Karnataka.
|
|
| 15. |
The
following Committee is functioning for resolving the operational problems of
exporters.
The Export Facilitation Co-ordination Committee, Central State inter
departmental Committee chaired by the Chief Commissioner of Customs &
Central Excise, Bangalore.
|
| 16. |
In
order to promote exports from all districts in the State, District Level Export
Promotion Committee (DLEPC) will be setup. The functioning of DLEPCs will be
monitored by the Sub-committee of SLEPC chaired by the Commissioner for
Industrial Development and Director of Industries & Commerce which also
renders secretarial services to the Policy making committees.
|
|
|
V(B)
EXPORT PROMOTION STRATEGIES
|
| 17.
|
The
Dept. of Commerce, ?Ministry of Commerce & Industry, Govt. of India have
set a target of US$ 80.48 billion for the exporters in the country to be
achieved by the year 2007, in order to reach 1% share of the world trade. This
policy aims at Karnataka achieving an ambitious 15% share in the country's
exports by 2007, i.e. US$12.07 billion from the present level of US$ 3.45
billion exports achieved during 2000-2001. to achieve this target, the average
compounded annual growth rate (CAGR) required is 24%. Following strategies have
been formulated to achieve this target
| (a) |
Exporters
in Karnataka are mostly concentrated in few districts, the majority of them
being located in Bangalore. All sections of exporters have their export
associations. VITC should closely and actively co-ordinate with all the export
associations and take up the following measures.
|
| |
| i) |
Evolve
suitable export oriented strategies focusing on specific product sectors with
inputs from the Export Associations/Exporters. This will include taking part in
international Trade Fairs/Exhibitions, providing inputs on technology
upgradation, packaging, quality, etc.
|
| ii) |
Undertake
market research on focus countries, markets and sectors and provide market
information to the exporting community.
|
| iii) |
Have a
time bound action plan to implement the above strategies and accelerate export
growth.
|
|
| (b) |
For
effective export promotion in the districts, the industries and traders may be
classified into three categories in each district, as given below:
|
| |
| i) |
Industries/Traders who
are already exporting |
| ii) |
Industries/Traders who
are exporting through merchant exporters |
| iii) |
Industries/Traders who
have not yet entered the export field. |
| |
Efforts will be made to
upgrade industries/traders in categories (ii) & (iii) to take up direct
exports. |
|
| (c) |
A District Level Export
Promotion Committee (DLEPC) in all the Districts will be constituted
comprising: |
| |
| i) |
A senior level officer
of the District Industries Centre |
| ii) |
A representative of
local Chambers/Industry Association
|
| iii) |
Two prominent exporters
from the District |
| iv) |
Lead Bank Manager |
| v) |
Concerned Department's
Officers |
|
| |
The DLEPC will draw
upon the expertise of VITC in export promotion and chalk out a time bound and
effective action plan to: |
| |
-
Prepare a comprehensive
database on existing exporters in the District
-
Identify
Industries/Traders who are exporting through other merchant exporters
-
Identify the
Industries/Traders with potential products for exports and
-
Resolve local problems
of exporting community
|
|
|
| (d) |
DLEPCs
will adopt following strategy to augment and accelerate exports:
| (a) |
Identify
the bottlenecks/problems faced by the existing exporters and resolve them. The
exports will increase significantly in a short period with the creation of a
suitable export conductive environment.
|
| (b) |
The
Industries/Traders who are exporting their products through other merchant
exporters will be trained to export directly by giving them intensive training
in exports, providing regular market information and other related information
on a regular basis from VITC. Since their products have already been accepted
in the overseas markets, these Industries/Traders are expected to become
exporters within a short time and help in increasing exports significantly.
|
| (c) |
After
the DLEPC has identified the potential exporters in the District, VITC will in
co-ordination with local DIC/Chamber/Industry Association counsel and train the
Industries/Traders to export their products. This will be a long term strategy.
|
| (d) |
The
DLEPC will also submit suitable proposals for developing export infrastructure
in their Districts.
|
| (e) |
The
Commissioner for Industrial development, who is the chairman of the
Sub-committee of SLEPC shall monitor the work of DLEPCs and ensure their
effective functioning.
|
| (f) |
E-Governance for
International Trade |
| |
Since
many Industries/Traders do not have the wherewithal to take up export activity
due to lack of knowledge on the trade, it is proposed to establish an
E-Governance facility at VITC, Bangalore and connecting six major Districts
viz., Bangalore, Mysore, Mangalore, Belgaum, Bijapur & Hubli to start with,
which would facilitate the existing and potential exporters in Bangalore and
these districts to have online chatting/video conferencing with experts,
concerned departments/organisations and obtain online updation of latest
notifications, circulars, clarifying doubts/questions related to exports,
generate online trade enquiries etc. at one single place without travelling.
|
| (g) |
VITC B2B Exchange
|
| |
To
capitalise on the potential for exporting through the internet, it is proposed
to upgrade the existing VITC trade portal to a full fledged B2B exchange, which
would facilitate even the small and tiny unit in the State to take up online
trading activity.
|
| (h) |
By
suitable adoption of the above measures and proper co-ordination of the
concerned Depts/Organisations with the exporting community, it is proposed to
not only help the existing exporters of the State to export more, but also
motivate new entrants in the field.
|
|
|
TOP
|
| V (C )
EXPORT INCENTIVIES
|
| 18.
|
Following
Schemes for export incentives are to be implemented by the State:
|
| |
| a) |
Market
Development Assistance (MDA) Scheme |
| |
The
MDA Scheme of the State Govt. shall focus on the small and medium manufacturing
units who wish to enter export field and small merchant exporters of the State
and would be administered by VITC. This Scheme would include among others,
financial support for visit of Trade Delegations to other countries,
participation in International Trade Fairs/Exhibitions, Market Survey Reports,
Publicity in foreign media etc. initially an outlay of Rs. 1.00 crore per year
will be provided under the Scheme.
|
| b) |
Brand Equity
Fund |
| |
A
brand equity fund with an allocation of Rs. 1.00 crore per year will be set up
at VITC under the Scheme. This will be aimed at building strong globally
competitive brands for products manufactured/produce originating from
Karnataka.
|
| c) |
Market Research Fund |
| |
A
Market Research Fund with an allocation of Rs. 1.00 crore per year will be set
up at VITC to activate a mechanism for providing live and timely market
information on products and markets which will help the SME exporters to enter
the export market directly.
|
| d) |
Technology
Upgradation Fund |
| |
Priority
will be given to the exporting units of the State to avail of the facilities
under the Technology Upgradation Fund created under new Industrial Policy
released in 2001.
|
| e) |
Export awards |
| |
VITC on
behalf of Govt. of karnataka is awarding export awards to top exporters of the
State for their excellence in exports. These awards will be in those sectors
that are focus sectors for the State viz., IT, BT, Food Processing, Precision
Engineering, Electronics & Communications, Garments and Machine Tools. A
one time corpus fund of Rs. 1.00 crore will be set up for this purpose.
|
|
| 19. |
All
export oriented industries will be eligible for incentives and concessions as
detailed in Govt. Orders No. FD 161 CSL 2001 (2) dated 30th Nov. 2001, FD 161
CET 2001 dated 13th Nov. 2001 and CI 167 SPI 2001(P3) dated 24th Sept. 2002.
For the purpose of the incentives as per the above orders a unit is defined as
an "Export Oriented Unit" if it exports a minimum of 25% of its production in
any financial year. Incentives for units set up in Special Economic Zone will
however by governed by the Special Economic Zone Policy as per the Government
Order No. CI282 SPI 2001 dated 25th Feb. 2002.
|
|
| V
(D) EXPORT INFRASTRUCTURE
|
| 20. |
Creating
good infrastructural facilities in potential export centres will receive atmost
priority. Government will encourage participation of private sector in
developing export infrastructure with a time bound implementation plan on
suitable models like BOT, BOOT, BOST etc. In particular the following
infrastructure projects will receive attention.
|
| |
| (a) |
Ports/ICD/CFS
|
| |
At present, there is
one major Sea Port, the New Mangalore Port Trust at Mangalore, one minor
Seaport at Karwar, an Inland Container Depot of CONCOR at Bangalore and a MSIL
Air Cargo Complex at Bangalore Airport. The Central Warehousing Corporation
have set up 2 Container Freight Stations which are operating in Mangalore and
in Whitefield, Bangalore. They have also proposed to establish six more
Container Freight Stations at Dharwad, Bagalkot, Mysore, Hassan, Karwar and
Raichur which are at various stages of implementation at present. In addition,
few CFSs are also being set up in the private sector.
It is
proposed to set up minor airports at Hubli, Mysore, Gulbarga and Bellary to
start with, and minor Seaports in Malpe/Moodabidri, DK and Tadri, UK, to
facilitate exports from the State.
|
| (b) |
Special Economic
Zone |
| |
Vide G.O.No. CI 94 SPI
2001 dated 19-4-2001 the State Government had approved establishment of Special
Economic Zone at Hassan. In order to boost the investors confidence in Special
Economic Zone and to highlight the State Govt.'s stand on issues relating to
State levies, generation and distribution of power, environmental clearances
etc., the Govt. Vide G.O.No. CI 282 SPI 2001 dated 25th Feb. 2002 has
formulated a State Policy for Special Economic Zones to gevern the development,
operation and management of Special Economic Zones and the Industrial Units to
be established therein.
It is proposed to
establish an exclusive SEZ for electronic hardware near the proposed
International Airport at Devanahalli. It is also proposed to convert the
existing Export Promotion Industrial Park at Whitefield, Bangalore and the
proposed Export Promotion Industrial Park at Mangalore in SEZ.
It is also proposed to
establish SEZs in other parts of the State based on need and feasibility
studies.
|
| (c) |
Agri Export Zones
and Food Parks |
| |
Agri
Export Zones for Gherkins are being set up in Bangalore Urban, Bangalore Rural,
Chitradurga, Dharwad, Bagalkot, Hassan, Tumkur and Kolar. Six Food Processsing
Parks have been cleared by the Central Govt. in the State at Malur, Bagalkot,
Chitradurga, Belgaum, Maddur and Jewrgi.
|
| (d)
|
Apparel
Export Parks |
| |
Two Apparel Export
Parks will be set up at Doddaballapur and Bellary. |
| (e) |
IT Enabled
Services Clusters |
| |
it is proposed to set
up hi-tech IT enabled services clusters in important Districts of the State. |
| (f) |
Permanent
Exhibition/Trade Centre |
| |
A permanent Exhibition
Centre at Whitefield, Bangalore is being set up with the assistance of ITPO. |
| (g) |
Assistance to
States for Developing Export Infrastructure and other Allied Activities (ASIDE)
Scheme |
| |
For the year 2002-03 in
the tenth five year plan, Ministry of Commerce, Govt. of India has allocated
Rs. 330 crores to the State Govt., under a new Scheme of Assistance to States
for Developing Export Infrastructure and Allied Activities (ASIDE), based on
their export performance. For this purpose, the shipping bill has been duly
amended to incorporate a column for filling up information relating to 'State
of Origin of goods'. The funds will be distributed to other States based on the
State figures compliled by DGCI&S on this basis. The "Stage of Origin of
Goods for Karnataka is 84".
The specific purpose
for which the funds allocated under the Scheme can be sanctioned and utilised
are as follows:
| i) |
Creation of new Export
Promotion Industrial Parks/Zones (including Special Economic Zones
(SEZs)/Agri-Business Zones) and augmenting facilities in the existing ones. |
| ii) |
Setting up of
electronic and other related infrastructure in export conclave. |
| iii) |
Equity participation in
infrastructure projects including the setting up of SEZs.
|
| iv) |
Meeting requiremnets of
capital outlay of EPIPs/EPZs/SEZs. |
| v) |
Development of
complementary infrastructure such as roads connecting the production centres
with the ports, setting up of Inland Container Depots and Container Freight
Stations. |
| vi) |
Establishing power
supply through additional transformers and islanding of export production
centres etc. |
| vii) |
Development of minor
ports and jetties of a particular specification to serve export purpose. |
| viii) |
Assistance for setting
up common effluent treatment facilities for which separate guidelines will be
issued. |
| ix) |
Projects of national
and regional importance. |
| x) |
Activities permitted as
per EDF in relation to North East and Sikkim. |
|
|
| |
The proposals for the
various export infrasturctural projects required to be implemented for
acceleration of exports and submitted by the DLEPC/ other concerned agencies
will be scrutinised and cleared by the State Level Export Promotion Committee
(SLEPC) headed by the Chief Secretary of the State. |
|
| V
(E) DEREGULATING BUSINESS ENVIRONMENT |
| 21. |
Deregulation
of business environment is imperative to enable exporters to operate in the
State with ease. With the objective of providing an efficient, responsive and
transparent administrative frame work the following is envisaged.
|
| |
| a) |
Vivesvaraya
Industrial Trade Centre (VITC) shall be the Nodal Agency to guide and provide
assistance to the exporters as well as to facilitate clearances from regulatory
departments and resolve operational problems of exporters. |
| b) |
Public Utility
Status |
| |
The Govt. of
Karnataka will review existing legislations to assign Public Utility Status to
exporting units who satisfy eligibility criteria as per relevant statistics. |
| c) |
Green Card |
| |
In order to enable
exporters having good track record to move their export/import consignments
freely without any hindrance from any of the Departments, the Govt. shall issue
them with green card facility, as per folloing criteria: |
|
| |
Criteria:
Exporters in Karnataka who are
|
a)
|
Manufacturers/Processors
or
|
|
b)
|
100%
EOUs as defined under EXIM Policy of Govt. of India or
|
|
c)
|
Having
Green Channel facility with the Customs and who qualify as per all the
following criteria will be issued Green Card facility by the Govt. of
Karnataka.
|
|
| |
Average Annual Export Turnover of Rs. 1 crore or more in the last 3
years
|
| |
-
The dealer should not
have pending cases or tax dues beyond 6 months other than normal appeals
-
Has not been ever
convicted under cases of tax evasion or fraud
-
Having at least 3 years
of existence in business
-
Prompt in payment of
taxes by Self Assessment
-
Prompt in depositing
P.F. amounts
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FACILITY
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| |
The
Green Card would entitle the holder to minimum inspection and
speedy clearance of all proposals by all Departments of the
State Government. A few of the areas where this can be of great
help to Exporters are detailed below:
-
Trucks
carrying cargo of card holders would have minimum inspection
at check post and would not be detained
-
Issue of statutory forms on demand without rationing
-
Special Gievance Cell for Green card holders relating to all
departments
-
Single
window agency for all State Department for licence/permission/compliance/renewals
etc.
-
Surprise visits by none other than jurisdictional assessing
officer or else visits with prior intimation only. A Senior
Officer would verify information received first.
-
All cases to be attended to at the State Headquarters.
|
| How
the System should work |
| |
- Issuing
Authority: Shall be issued by VITC with seal and signature of
Commissioner for Industrial Devpt. And Director of Industries
& Commerce and Commissioner for Commercial Taxes
-
Validity of the card would be for 3 years. (Smart Card)
-
Unique computer generated identification code would be given
to the card holder
-
Form 39 would be of different colour or specially stamped
-
Stiff penalties for willful defaults
-
Quarterly meeting between green card holder and Governemnt Department
Heads chaired by the Additional Chief Secretary & Principal
Secretary, C&I Dept. to solve any problems and disputes
-
The green card holder would provide self-certification/affidavit
in lieu of the relaxations/ exemptions provided.
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