BENGALURU: Karnataka, which boasts of a single-window agency and gives special land parcels to industrial entrepreneurs, is at the ninth place on the top 10 “Ease of Doing Business Index”, prepared by the World Bank.
Rampant corruption, inefficient bureaucracy and political system, and expensive and unaffordable land values are primary reasons that have prevented entrepreneurs from setting up industries in Karnataka. Industries need BIPASA (Bijali, Pani and Sadak) which is power, water and road, said members of the Federation of Karnataka Chamber of Commerce and Industries (FKCCI).
Assocham co-chairman J. Crasta said, “The problem is that the single-window concept in the state has multiple doors. It is our misfortune that states like Chhattisgarh and Jharkhand have scored over us. Why are bureaucrats and politicians ignoring industrial growth?”
He said, “Frankly speaking, the present Congress government, which is filled with former JD(S) leaders, is against industrial growth. During the S.M. Krishna regime, the support for industrial growth was overwhelming, despite odds like the drought and law and order problems due to the kidnapping of Kannada matinee idol Dr Rajkumar.”
One of the primary requirements for establishing industries is land. In Karnataka, the land is allotted for 99 years lease by demanding 99 per cent of cost of the land which is not practised anywhere in the world. States like Gujarat and Maharashtra collect just 20 to 30 per cent.
Although power, coal and cement companies had evinced interest during the Global Investors’ Meet (GIM), hardly anyone survived. Another industrialist and FKCCI member D. Muralidhar said some people in the system will go to any extent to sabotage good intentions of officials and politicians. The Karnataka Industrial Area Development Board has become a real estate hub rather than serving industrialists.
World Bank prepares report
The report was prepared by the World Bank based on eight specified parameters which include setting up of business, allotment of land, labour reforms, procedure for environmental clearance, infrastructure, procedure for registration for tax purposes and inspections for compliance of various norms.