The Karnataka Assembly on Tuesday, December 27 passed the Karnataka Special Investment Region (KSIR) Bill, which will provide special incentives for new industrial ventures exceeding an area of 2,500 sq km. Chief Minister Basavaraj Bommai said that the Bill was based on the “successful model” of the Electronics City Industrial Township Authority (ELCITA). It will supersede other laws like the The Karnataka Town and Country Planning Act, and will not fall under the jurisdiction of local bodies.
The Karnataka Industrial Areas Development Board (KIADB) will be the apex authority of the special investment regions, and will be empowered to issue licenses, sanction plans, and levy property tax. Minister for Large and Medium-Scale Industries Murugesh Nirani, who tabled the bill, said that 30% of the property tax collected from industrial ventures under KSIR will be distributed to the local body, while the remaining 70% funds will be used to provide amenities to the industrial area. “The purpose of the KSIR Bill is to boost investments and help set up industries in the state,” said Murugesh Nirani, who said that the Bill’s purpose was to prevent “harassment” of investors and industrialists.
During the debate on the legislation, Congress MLA RV Deshpande expressed concerns that the KSIR Bill was in conflict with other laws. Other legislators expressed fears that the Bill could facilitate turning land acquisition into a real estate business, as had happened in the past. In response, CM Bommai said that he had ordered a land audit three months ago to find out why no industries had been established in certain cases despite the allotment of land, and assured that the government would recover such unused land.
CM Bommai stated that the KLSIR Bill has been formulated based on the model of ELCITA, which is an autonomous body managing the infrastructure of the Electronic City industrial area in Bengaluru. He said that the state government had obtained the approval of all relevant departments before drafting the Bill. He added that the Bill aims to solve the problem of local bodies collecting property tax from industrial zones without providing sufficient infrastructure in return.
He also assured that the government will take back land granted for industrial purposes if it is not used for more than 10 years, including 5,000 acres allotted to ArcelorMittal in Ballari district and to the National Mineral Development Corporation. Bommai said that apart from auditing of land allotted to industries in the past, water auditing is also underway, and that action will be taken based on the results. "My slate is clean. I am under no obligation. We will recover the land, which remained unused despite allotment," the Chief Minister told the House.