News Section

1000 micro units planned in Karnataka

Bangalore, Feb 14 (KNN) The Karnataka Governmnet today announced a slew of measures for the MSME sector which includes mandating the District Industries Centres to facilitate setting up of 1000 micro units in the state.

Presenting an Rs 1.38 lakh crore Budget for 2014-15, Chief Minister Siddaramaiah said manufacturing units will be set up in the Naxal hit areas while Venture Capital of Rs 10 crore will be provided to the budding entrepreneurs.

Total provision of Rs 637 crore has been provided to the infrastructure development department in the state budget, while for the Commerce and Industries Department, total provision of Rs 975 crore has been made.

While presenting his budget, the state chief minister said, “It is proposed to establish 1000 micro enterprises in the rural areas by investing capital upto Rs 10 lakh through District Industries Centres with a view to encourage self-employment among the youths through various existing programmes and in Co-ordination with Financial Institutions.”

“Training and manufacturing centers will be set-up in naxal affected areas of Karkala Taluk, Udupi District and Sringeri through Karnataka State Coir Development Corporation,” Siddaramaiah said in his budget speech adding that “Venture Capital Support of Rs.10 crore will be provided to encourage potential entrepreneurs intending to set-up new industries through ‘Fund of Fund’ Scheme.”
 
Interest subsidy of 9 per cent which is allowed at present to village industries and khadi institutions which are availing additional working capital limited to Rs 3 lakhs in most backward, more backward and backward 114 taluks will be extended to all 176 taluks in the State, he said.

Further, he proposed that 1000 residential work sheds will be provided to skilled workers of the State under the new Special House Building Scheme at the cost of Rs10 crore.

“It is proposed to set-up “Coir Technology Park” at a cost of Rs 2 crore at Vijnana Gudda, Tumkur District, for the purpose of showcasing coir activities and eco-friendly coir products for entrepreneurs and tourists under a single roof,” he said.

Interest subsidy of 6 per cent will be provided to new generation entrepreneurs to an extent of Rs.75 crore to motivate and promote entrepreneurship in the State through KSFC, for which, a grant of Rs 4.50 crore is provided.

“Financial support of 50 per cent subject to a ceiling of Rs 7.50 lakhs for MSMEs in Aerospace Sector will be provided for obtaining certification like ISO 9100, NDACAP etc., to make them globally competitive.  For this, a grant of Rs 75 lakhs is provided,” Siddaramaiah added.

“Department of Commerce and Industries shall make efforts to establish industrial townships in the State with the co-operation of Urban Development Department. Action will be taken to notify the two industrial townships especially during the year 2014-15,” Karnataka CM said.

It is proposed to establish Gems and Jewellery SEZ in 10 hectares of land in Devanahalli of Bangalore Rural District, through Hatti Gold Mines Limited.
 
He also said that, “Special package will be formulated for rejuvenation of Handloom industry in the next 5 years. Expert committee will be constituted to suggest measures for encouraging capital investment and market linkages, design and technology adoption, incentives for exports and empowerment of Handloom Development Corporation.
“During the year 2014-15, Rs 120 crore will be provided under Weavers Special Package scheme for comprehensive development of Weavers, while Rs 75 crore will be provided for implementing New Readymade Garments Policy during the year 2014-15,” he added.

In the budget, special focus has been given to the Khadi units, “it is proposed to introduce One Time Settlement Scheme (OTS) by waiving the interest payable on the loans sanctioned to the units under PBS scheme by KVIC through KVIB.  The scheme would benefit 21180 Khadi units/Institutions. Rs 26.15 crore is earmarked for this purpose during the year 2014-15,” according to the budget speech.

For the purpose of bringing novelty in the design and having decided to provide marketing subsidy under ‘Karnataka Khadi Branding’ scheme, with the assistance of National Institute of Fashion Technology / National Institute of Design and also other famous branding consultants, assistance will be provided for the purpose of branding. For this purpose, a provision of Rs 2 crore is earmarked during 2014-15. Rs 1 crore grant is provided for Karnataka Khadi Gramodyoga Sangha, Hubli.

This is a record ninth budget presented by Siddaramaiah, the second after taking charge as Chief Minister.