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June-July 2017 | Vol 3 | Issue 3
www.advantagekarnataka.in
We make it convenient
and seamless to Do:
Chief Minister Siddaramaiah
A Fine
Balancing
Act
Dr. G. Parameshwara
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ADVANTAGE KARNATAKA 2 3
EDITORIAL
Save Lakes,
Solve Water Crisis
Pollution and water scarcity are the twin woes making life hell for residents
of Bengaluru. When the highly-polluted Bellandur Lake caught fire in
February this year, people in other parts of the country and even abroad
took notice of the serious environmental crisis facing the Information
Technology capital of the country. That the lake had caught fire several
times earlier and the February incident was only the latest in a series
despite the intervention of not only environmentalists and residents but
also the courts increases the gravity of the situation.
Later, in March, when the Varthur Lake turned into a cauldron of froth
and foam, the issue became one that raised concerns even over the future
of Bengaluru. With the air quality of the city already one of the worst in the
country, some scientists have said unless the authorities took corrective
A magazine showcasing action, Bengaluru could turn an uninhabitable city by 2025.
the latest news updates
and events of Karnataka Meanwhile, Karnataka is facing a severe water crisis for the fourth
consecutive year with rainfall recording a deficiency of 40-70 per cent
during the August-December period last year. The Government declared
160 of the 176 taluks in the State drought-hit in early March, when the
summer months were still far away. An Indian Institute of Science study last
year had revealed that Bengaluru has lost 79 per cent of its water bodies
Editorial Adisory Board owing to urbanisation and 98 per cent of its lakes have been encroached
Dr. C.G. Krishnadas Nair upon. The result is, the city is dependent on water from Cauvery while
Former Chairman, HAL potential water sources exist in abundance in its limits.
Dr. D. S. Ashwath IAS (Retd) Though efforts have been taken in the past like the formation of Lake
Shri. Ivan Nigli Ex. MLA Development Authority to save and rejuvenate the waters bodies, they
have met with limited success. The Government, in such circumstances,
Sunny Jerome
Managing Editor should treat the pollution of the lakes and the water scarcity through the
same lens and solve one to make the other more manageable.
Preethi M
Associate Editor
Trivandrum
S. Radhakrishnan
For Publishing Articles, Advertisements
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4 5
ADVANTAGE KARNATAKA
Karnataka: One of India’s
Top Investment Destinations
With proactive industrial policies and high
Content
rank in ease of doing business, Karnataka
is the hottest destination for investors.
Stay tuned to the coming issues in this
series that unravels easy steps to the
journey of investing in Karnataka. If you
are looking to invest newly, if you have
7 Karnataka: Top Investment Destination already invested, you’ll definitely find
useful information here. We welcome
9 Lakes of Fire & Foam you to send your questions, doubts and
suggestions to us. Your experiences shall
10 STARTUP - Making the Right ‘Clicks’ prove helpful to others in the bandwagon.
Together, let’s make the journey more
11 A Fillip to Infrastructure easy and fruitful.
I
12 Industries Aiming for 12 % Growth nvesting in Karnataka – An Introduction Investments are subsequent returns. To begin with, the focus on providing the basic
bursts of ‘’energy’’ required to actively sustain a robust necessities such as Infrastructure, Land availability, Power and
14 Universal Development with a Human Face economic activity for a longer time which in turn creates Water supply has increased even as the government machinery
economic prosperity. This results, in higher earning capacity is working hard on ensuring these necessities are made available
17 An Excellent Track Record leading to greater spends that in turn again provide an impetus for potential investors and companies. At the supply front, the
for a continued economic growth. Karnataka, the 8th largest state is focussing on establishing institutions across academic
A Fine Balancing Act state in India with close to 66.1 million population and a steadily streams to promote quality education as means to create enough
19 growing younger demographic is fast becoming one of the most supply for the skilled job space and on vocational training for the
attractive investment destinations in the country. It is also seen semi-skilled job space. At the Execution level, the government
21 Unity is Strength, Says Congress In-charge as a proactive state having pioneered machinery has been working to stand
the IT revolution and setting up of IT tall in The Ease of Doing Business by
23 A Winning Combination Knowledge Parks in India leading to a working on methods to provide quicker
change in the economic contours of the
‘’At $156.23Bn access to the relevant departments of
24 Ease of Doing Business state and establishment of a thriving Karnataka stood 5th the machinery, faster land acquisition
business ecosystem over the last three and clearing of the files and even aiding
Spreading out from capital city decades. overall with 7.54% in the implementation of the projects.
36 Though Karnataka is predominantly
contribution towards
38 Winning the War against Hunger Good news is that the momentum known for the IT ecosystem, it is one
that began towards the end of the National GDP’’ of the most industrialized states in the
90s has been sustained as more and country with a clear focus on other
40 Bangalore Metro
more initiatives have been taken up industries too. One can see the intent
by successive governments to ensure of the state as it strongly continues to
42 Bangalore Sports (Cricket Leads the Peak) a sustained economic growth. The GDP of Karnataka stands at promote the other sectors such as Bio-technology, Health Care,
$156.23Bn (‘15) and has been steadily growing at 7%, almost Manufacturing, Agri and Food processing, Energy and Tourism.
43 Mysuru Dasara, the cound down begins on par with the nation’s growth rate and the future does look This is good enough news for investors who are looking to focus
promising for this southern state. on sectors other than IT. An example of faith imposed in the
44 Lights, Camera, Action,... state of Karnataka by the investors is the $10.4Bn investment
Advantage Karnataka: intentions received in the first half of last year (2016) even as the
45 Street Food in Karnataka The state headed by its capital city of Bengaluru has a state moved to the number one position in the category. The
geographical advantage in terms of its location and connect investment intentions worth $10.4Bn reasserted Karnataka’s
Karnataka Tourism not only with other parts of India but with other parts of the position as one of the top investment destinations in India. As an
48 investor one would certainly weigh in the Pros and Cons and look
world. Another great advantage is establishment and reach of
for future potential before taking a step, and here are a few strong
50 Recognition for Nurses several academic institutions that create a large knowledge
facts that reassert Karnataka’s position as a winning partner as far
pool of resources which cater to several industries. The fact that
Bengaluru hosts not only the largest IT hub but also the largest as investments are concerned:
R&D and Bio-tech hubs goes to show the kind of potential the q It has the 4th largest skilled work force in the country as it
state holds for a robust and complimentary economic activity in employs 6.6% of the country’s industry employment.
the years to come. q It is a pioneer in introducing industry policies; the first to
introduce policies for Aerospace, Bio-Technology, IT, Semi-
The state government has over the years realized the potential
conductors and Start-Ups.
and has actively pushed forward several norms and policies
q Perhaps, it has the best labour relations in the country; labour
to create a very conducive environment for investments and
is very industry friendly.
6 7
LAKES
ADVANTAGE KARNATAKA
q It has 90,000 acres of land allotted for economic development q Also, the most expat-friendly place with an outstanding Social
40,000 of which has been notified for industrial purposes. infrastructure and Cosmopolitan culture.
q It has the largest bio-diversity in the country with 10 agro
climate zones to cultivate various crops. Emergence of Tier II cities:
q Most globalized state with highest degree of openness to
of Fire & Foam
If Bengaluru leads the way for the economic prosperity of the
export trade at 47.7% vis-à-vis national average of 24%.
state, the tier II towns of Mysuru, Hubli - which is fast becoming
q It attracts the 4th highest FDI in India with a cumulative of
another start-up center, Mangaluru and Belgaum are fast
12.2Bn since 2009
becoming centres of business activities. As a result, the business
The above stats go ecosystem is slowly spreading farther and wider across the state
to show the extent resulting in a safer business model where several areas of the
‘’The state hosts of the achievements state contribute to its growth rather than just one or two.
about 60% of of the state on the
economic front and The government is also
BIOTECHNOLOGY the kind of conducive focussed on promoting
COMPANIES
environment the start-up culture in ‘’Investment
it creates for these tier II cities and
in the country’’ aburgeoning is providing impetus intentions worth
economic activity, for enterprising
not to forget the kind individuals moving $10.4Bn is the highest
into sectors other than
of returns it provides ever received for any
for all stakeholders, especially, the investors. IT such as – Agriculture,
Bangalore Leading the Race:
Bio-tech, Education, state in India’’
Health etc. This outlook
Arguably the innovation hub of India Bangalore attracts and promises a much more
presents the most innovative of ideas and resources from all economic activity
over the country. As a result, this open and vibrant ecosystem spread even as Karnataka is fast becoming a state that fosters
has nourished and given rise to the most intensive and investor- varied industry sectors in the prospect of catering to a wider
driven Start-up ecosystem in the country even as the ideas find range of business communities and investors.
A
fruition in the form of emerging startups.
The future looks bright as Karnataka has become one of the fastest dvantage Karnataka examines some major Development Authority, lakes in the city, including the Bellandur
Bengaluru is known for being: growing states moving into the top 5 slot of states contributing environmental issues faced by Bengaluru in the light of Lake, have met a sad end or are in a critical condition. This, despite
q The largest Tech hub in India and the 4th largest in the world towards the national GDP. With a renewed focus, a stronger the fires that appeared in Bellandur Lake and the foam the intervention of not only environmentalists and concerned
q The Start-Up capital of India and is the most VC-friendly place political will and an abundance of human resource, Karnataka emitted by Varthur Lake citizens, but also the courts. In fact, the courts had intervened in
having received the highest VC funding so far definitely promises a more vibrant and friendlier business the issue based on several public interest litigations filed before
ecosystem and is a safe and worthy investment destination for The recent incidents of fires in the Bellandur Lake and the them, but most of their orders have led to little or no action from
Stay tuned, as we take you into the next investors from across industries and geographies. n toxic froth and foam emitted by the Varthur Lake in Bengaluru the authorities concerned, leaving the lakes to die. Bengaluru, in
phase – The Process of Investing in the have attracted global attention to the plight of the lakeshere as effect, has become a city of disappearing lakes.
state of Karnataka. well as the environmental issues plaguing the city.
The fire that appeared in Bellandur Lake on February 16 this
Many environmentalists have said the fire and foam in the lakes year has left residents evidently angry, as such incidents are
were only a warning. Bengaluru, in fact, faces an environmental reported very rarely in the world. “Shocking apathy and serious
catastrophe, according to them. neglect,” said industrialist, Biotechnology pioneer and city
resident KiranMazumdar Shaw. Shaw, in fact, heads a citizens’
It is ironical that Bengaluru was earlier known for its clean lakes group that takes up the rising pollution levels in the State capital.
abundant with flora and fauna that more than met the water
needs of the city’s population. History says Bengaluru once had However, according to a fire officer, “The fire was because of dry
280-285 lakes. However, over time, the number has fallen to 17 grass, not pollutants.”
now as a result of rapid urbanisation, development, conversion
and encroachment. But it remains a fact that the lake is being used as waste dump
not only by residents but also the toxic industries who release
Most of the lakes were constructed by the founders of their harmful effluents into the water body.
Bengaluru, the KempeGowdas, around 400 years ago and
subsequently developed by the Wodeyars of Mysuru and the “The problem has become complex over the years. The civic
British. They were meant to meet the needs for drinking water, bodies have promised that they will stop sewage being dumped
irrigation as well as fishing. The lakes, built by channelling the into the lake,” said the chairman of the State Pollution Control
numerous streams originating from the valleysaround the city, Board.
helped replenish the ground water sources nearby and also
influenced the micro-climate of the area. The notable freshwater “The hyacinth over the sludge was dry and caught fire. Its ring-
lakes and tanks in Bengaluru now include MadiwalaLake, Hebbal like formation indicates a chemical reaction,” he said.
Lake, UlsoorLake and Sankey Tank. A biometric survey of the lake bed has shown the silt and sludge
there have a high concentration of heavy metals like lead,
Though the governments over the years have taken steps chromium, copper and cadmium.
aimed at their restoration, including the constitution of a Lake n
8 9
ADVANTAGE KARNATAKA
A FILLIP TO
Making the Right ‘Clicks’ INFRASTRUCTURE
Karnataka came out with a path-breaking Startup Policy in 2015, aiming to
create 20,000 startups by 2020. Advantage Karnataka takes a look at the
policy and the strategies to achieve the targets
W
hen the Government of Karnataka launched a Startup implementing Departments and take necessary decisions for
Policy in November 2015, a first in the country, it was improving the implementation. The council meets at least once a
fulfulling a long-felt need. Bengaluru, in fact, has been year.
the startup capital of India for long, leaving the other cities and The Startup Council has the Chief Minister of Karnataka as
towns far behind. Chairman. The members are: Minister for Large and Medium
Estimates have said Bengaluru hosts around 1,700 startups. Industries; Minister for IT,BT and S&T; Minister for Agriculture;
The Karnataka Startup Policy 2015-20 aims to raise this number Minister for Health and Family Welfare; Minister for Food and
to 20,000 technology-based startups, including 6,000 product Civil Supplies; Minister for Higher Education, The Chief Secretary
startups, by 2020. The Government hopes to create six lakh direct to Government of Karnataka, The Additional Chief Secretary to
and 12 lakh indirect jobs in the sector under the policy. It has Government of Karnataka, The Additional Chief Secretary to
set a goal of mobilising funding amounting to Rs 2,000 crore for Government & Development Commissioner. The Additional Chief
startups. The focus will also be on generation of 25 innovative Secretary to Government, Commerce andIndustries Department,
technology solutions with social relevance. The Additional Chief Secretary to Government, Higher Education
The Government has prepared the strategies to achieve the
targets it has set. They are:
1) Foster strong partnerships between R&D institutions
and industry;
W
2) Provide early stage Idea 2 POC (proof of concept) Funding; ith rapid development taking place in the State, For Smooth Air Travel
3) Encourage entrepreneurship in education; especially in and around the capital Bengaluru, the The State Government has provided 588 acres of land for
4) Create incubation infrastructure through PPP; Karnataka Government has initiated several steps to set upgradation works of Hubballi Airport and 370 acres for Belagavi
5) Channellise innovation for social impact; up the infrastructure required to aid growth. Airport. Kempegowda International Airport has become the
6) Provide startup funding through Fund of Funds; third largest Airport in the country in terms of passenger traffic.
7) Promote capacity-building through exposure visits and Railway Development The development of second runway is in progress to reduce the
workshops and Among them is the release of a Rs 1,637-crore grant for Rail traffic congestion. Construction of Terminal-2 will be taken up
8) Provide state support in the form of incentives and Over / Under Bridge works from 2013-14 to 2016-17. Meanwhile, soon, said the Chief Minister. Development of air strip at Karawar,
concessions. Department, The Principal Secretary to Government, IT & BT
and S & T Department, The Principal Secretary to Government, the construction of Hassan-Bengaluru railway line is already Madikeri and Chikkamagaluru will be started this year, he said.
“We take immense pride in the fact that Bengaluru fosters Medical Education Department, The Commissioner of completed. The 27 km Munirabad-Mehaboob Nagar railway For the expansion of Mangaluru International Airport, proposal
the youngest entrepreneurs in the world and is also the world’s Industries, Commerce & Industries Department, The Director, line from Ginigera to Chikkabenakal will be opened during the for land acquisition of 286 acres has been submitted to Airports
fastest growing startup ecosystem. Perhaps, we are the only Software Technology Parks of India (SPTI), The Director, Central year. On Kudachi-Bagalakote new railway line, 30 km track from Authority of India. Necessary support for the expansion of the
State Government who are nurturing the ecosystem with strong Manufacturing Technology Institute, The Chairperson, Innovation Bagalakote to Khajjidoni will be opened soon. project will be provided by the Government.
policies like the i4 Policy, BT Millennium Policy, ESDM Policy and Council of Karnataka. The Council also has several Industry and Necessary land acquisition process for 156-km
the KAVGC Policy, giving the ecosystem a strong foundation to Academic members. The Government has also constituted a Other Projects
help entrepreneurs and the established industries to flourish,” Monitoring and Review Committee; Startup Policy Monitoring Gadaga-Vadi new railway line is in progress. For this project, City Gas Distribution Project is in the final stage in Bengaluru.
says Shri Priyank Kharge, Minister for IT, BT and Tourism. We and Review Committee; a Vision Group on Information the Government will give free land and 50 per cent of total project Industries, city transport and domestic consumers will get the
are also the first in the country to launch a dedicated Startup Technology; and a Vision Group on Biotechnology. cost of Rs 1,922 crore will be borne by the Government, said Chief benefit of the distribution of gas through pipes. Tadadi seaport
Policy for budding entrepreneurs and a dedicated Startup Cell Minister Siddaramiah. project will be taken up under Public-Private Partnership. n
“Karnataka and Bengaluru have grown to be one of the
that will provide extensive services like legal and accounting
20 best startup ecosystems in the world. The Government of
advice, mentoring, incubator options, subsidized tariffs and also
Karnataka has been taking many proactive steps to encourage
seed funding. The Government of Karnataka is committed to
new entrepreneurs. The State was the forerunner in introducing
provide the most conducive environment for investments and
funding through KITVEN-I to small enterprises, much before
acceleration across all verticals to ensure we remain the leaders
funding support for startups has become the focus of the day,”
in technology and innovation,” says the Minister.
says Ms V Manjula, Principal Secretary, Department of IT, BT,
Karnataka has also become the first state to have a dedicated Science & Technology, Karnataka.
Startup Council under the Chairmanship of the Chief Minister. “In order to strengthen the existing ecosystem in Bengaluru as
The Council works on the Karnataka Startup Policy to provide well as to create a similar stimulating environment in tier-2 cities,
easy clearances, besides having a dedicated set of officials to Government of Karnataka came up with a multi-sector Startup
deal with the needs of emerging businesses. The Council reviews Policy. This policy consolidates a number of initiatives which the
the status report on the implementation of the policy, which Government has already been implementing in IT and BT sectors,
would include an appraisal of usefulness, ease of implementation and expects to promote similar growth in other manufacturing
and outcomes of the policy, commissioned every year by the sectors, especially in high technology areas,” she says.
10 11
ADVANTAGE KARNATAKA
INDUSTRIES
small industrial units have been registered with investment of Rs IOT, Big Data Analytics, Artificial Intelligence and Machine
22,175 crore and employment was created for 10.3 lakh persons. Learning, Stem Cell Research, Bespoke DNA Medicine and other
During the last four years the Siddaramiah Government has been areas which will define the next 20 years. Making Bengaluru the
in power, 2,807 living-cum-worksheds have been constructed Electric Vehicle Capital of India is also on the cards.
Aiming for 12 % Growth
under Scheduled Caste Sub Plan and Tribal Sub Plan. Also,
initial capital investment to 230 entrepreneurs and 60 per cent Job-creation
investment subsidy to 627 very small industrial units were given.
Skill development training has been provided to 15,350 youth “The focus of the Government’s industrial policy is employment
under different schemes. Under New Textiles Policy 2013-18, Rs creation. This year we intend to focus on employment intensive
sectors like toy manufacturing for exports, manufacturing of
The Siddaramiah Government has 1,918 crore has been invested creating employment opportunity
mobile phones, tablets, electronic components and assemblies,
for 96,568 persons.
been on a pro-active mode in etc.,” says Siddharamiah. The Government will allot Rs 25 crore
for the development of roads within the limits of sugar factories
encouraging industries and The Government, in order to approve mining lease in a
in 2017-18. Rs 4 crore will be provided to set up Citizen service
transparent and judicious manner, has adopted e-tender system.
providing an environment Through tendering, seven iron ore blocks have been cleared. To Centres with a view to encourage Khadi and Gramodyog
protect the ecosystem along the river bed, the State Government Industries. Another plan is to establish Khadi Plaza in Bengaluru
conducive is encouraging M-sand production, which was at 1.5 million tons and Belagavi at an estimated cost of Rs 10 crore each, with the
to their growth. Advantage in 2013-14 and has increased to 20 million tons by 2016-17. At assistance of Government of India.
present, 164 M-sand units are functioning. Under Karnataka
Karnataka takes a look at the Minor Mineral Concession (Amendment-2016) Rules-1994, Promoting SC/ST Entrepreneurs
Government’s programmes so far reservation is provided for allotment of contract works to
The Karnataka Government has drawn up several schemes to
Schedule Caste, Schedule Tribe/Economically Backward/
and its plans for the future Differently Abled people who are depending solely on quarrying
encourage entrepreneurs from Scheduled
Castes and Schedule Tribes. They include:
for livelihood. Plots/sheds are being allotted/distributed to the
For the new MSMEs to be established by the Schedule Caste and
W
hile the successive governments that have come to level Clearance Committee and the State-level and District-level Schedule Caste and Schedule Tribe communities by KIADB/
Schedule Tribe entrepreneurs, power subsidy of Rs 2 per unit
power in Karnataka over the years have generally Single Window Clearance Committee with an investment of Rs KSSIDC at 50% discount rate. Under Chennai-Bengaluru-
will be given in the first five years. For the first time, processing
adopted policies beneficial to industries and commerce, 17,293 crore, creating employment for 1.6 lakh persons, while Chitradurga Industrial Corridor Project, one-time grant of Rs.400
fee, legal fee, one- time loan disbursement fee and other fee
the present Congress Government led by Siddaramiah has taken 1,492 projects with an investment of Rs 2.8 lakh crore are under crore will be provided for Tumakuru Industrial Node for land
levied by financial institutions will be borne by Government for
several steps ahead by introducing a number of landmark implementation. ‘Invest Karnataka-2016’, the global investors acquisition by the KIADB. In consultation with Indian Machine
MSMEs. 100 C-type and 100 D-type sheds will be constructed at
programmes in the two sectors. Meet, was successfully conducted in February, 2016. During the Tool Manufacturer Association and with the assistance of
subsidized cost by KSSIDC. Loan amount of Rs 46 crore availed
event, MoUs were signed for 112 projects with investment of Ministry of Heavy Industry, Government of India, the Karnataka
under seed capital investment from 2010-11 to 31/03/2017 will
“The Department of Industries and Commerce acts as a Government will be developing a ‘Machine Tool Industry Park’
Rs 1.27 lakh crore. Of these, four projects with an investment of be waived.
catalyst for the overall development of the industrial sector on 542 acres of land at Vasanthanarasapura in Tumakuru district.
Rs164 crore have already been implemented and 41 projects with
through effective discharge of facilitation roles,’’ says the website Another plan isto set up a Precision Metrology Lab in association
an investment of Rs 32,480 crore have been approved. Boost for Small, Traditional Ventures
of the Department. Chief Minister Siddaramiah has been ably with Central Machine Tool Industry on their premises, on 50
supported by his Industries Minister R.V. Deshpande in the Best Industrial Destination per cent cost sharing basis with Government of India, to give a Instead of the existing 99-year lease basis, industrial land/
planning and implementation of the programmes. fillip to the engineering manufacturing industries in the State. site will be distributed up to two acres to small and very small
As per the Department of Industrial Policy and Promotion,
A ‘Vision Group’ headed by sectoral experts for Pharma and entrepreneurs by the Karnataka Industrial Area Development
Government of India, Karnataka stands first in the country as an
New Industrial Policy Medical equipment will be formed to formulate the necessary Board and Karnataka State Small Industries Development
investment destination by attracting investment of Rs 1,54,173
programmes to encourage Pharma and Medical Devices units Corporation on 10-year lease/sale basis. A special grant of Rs.5
The New Industrial Policy 2014-19 announced by the crore in 2016. Another honour achieved by the Government is
in the state. To encourage the best performing manufacturing crore will be given to KASSIA to establish Centre of Excellence
Siddaramiah Government aims to achieve a growth rate of the successful conduct of the Pravasi Bharatiya Divas-2017. The
unit in Karnataka, the Government will be instituting an award. at Dabaspet. Plots/sheds to be allotted/distributed to the
12 per cent by attracting investment of Rs 5 lakh crore and event, intended to motivate investors to invest in Karnataka, saw
Another major national event planned by the Government is persons belonging to Backward Class Category-1, Category-2A
generate employment for 15 lakh persons during the policy the participation of 7,200 delegates, including 2,000 from abroad.
regarding Vendor Development to bring together MSMEs and and Category-2B by KIADB/KSSIDC will be given at 25 per cent
period. Since the announcement of the policy, 124 projects ‘The Make in India’ conference was also successfully organised in
Large Manufacturers/Public Sector Undertakings for giving discount. Discount will be limited to 1 acre in Bengaluru Urban
have been implemented following approval by the State High- February 2017. From 2013-14 onwards, 1.16 lakh small and very
marketing support to MSMEs. and Rural Districts and to 2 acres in other districts. To encourage
women entrepreneurs, the limit of loan being disbursed by
Frontier Tech Karnataka State Finance Corporation at 4 per cent interest will be
enhanced from existing Rs 50 lakh to Rs 2 crore. The Government
Karnataka also intends to formulate a policy for hi-tech and
will also set up a Business Incubator exclusively for women
frontier industries like 3D printing, Robotics, Nano Technology,
entrepreneurs. n
12 13
ADVANTAGE KARNATAKA
UNIVERSAL
Women and Children
“Darkness will not cast on the future of
the land where women and children are
DEVELOPMENT
the focus of development. This is a simple
truth which I have found out by experience.
Today, even reputed private institutions are
appreciating the steps taken by the State
with regard to empowerment of women and
with a Human Face
in shaping the future of the children. I wish to
bring to the notice of this House that recently
an international organisation has accorded
‘Most Encouraging State Government –
K
arnataka Chief Minister Siddaramaiah, who is celebrating 2017’ award for the steps taken by Karnataka
four years in office, has always stressed that an all-inclusive, to encourage women entrepreneurs and
universal development model with a human face should be remove gender inequality. I am proud to
pursued by his administration. state that this is the face of our development.
Commitment of women in carefully building
This was evident during his presentation of the State’s the society as daughters, mothers, and sisters
Budget for the year 2017-18 too, when he elaborated on the is unquestionable. Therefore, gender sensitive
achievements of his Government during the past four years. features are deeply rooted in our fiscal policy, Chief Minister Shri Siddaramaiah inaugurating various development projects
In fact, the Chief Minister had earlier laid before the State an which will provide equal opportunities and
extensive economic framework for social justice, one of the but the Union Government is yet to disclose what outcome has
choices by removing gender inequality,’’ he says. “The last four
objectives of India’s Constitution. Siddaramiah says he has made been achieved by it, says Siddaramiah. The entire cooperative
years were not a bed of roses. We are facing an adverse situation
an honest effort to further extend and enhance the framework. sector, that is so critical in servicing the farmers and the rural folk,
because of slump in economic activities, including continuous
Ramarajya, Social Justice and Development virtually came to a standstill. The manner of implementation
drought over the two years and recent demonetisation, which
betrayed a lack of preparedness, with the banking system just
“Ramarajya is a concept representing hunger-free, exploitation- is being countered through fiscal discipline, commitment to
not geared up for this responsibility given to them. The goal
free, overall development with deep-rooted harmony. Be it resource mobilisation and efficient administration. posts were changed midway and the rules were repeatedly
inspiration behind the Constitution drafted by Ambedkar, life of modified. “While the need for demonetisation itself is debatable,
Gandhiji saying ‘my life is my message’ or Anna Basavanna’s ideals, State’s Economy I think that the Union Government and the Reserve Bank of India
all say the same. Therefore, it is my belief that Ramarajya cannot The Gross State Domestic Product in the year 2016-17 grew at the could have at least foreseen the exigencies and could have put
be built by those who oppose the concept of social justice,’’ says in practical and robust systems in place to insulate the common
rate of 6.9 per cent as against the rate of 7.3 per cent during 2015-
Siddaramiah . man from these hardships,’’ says Siddharamiah.
16. Agriculture sector is estimated to grow by 1.5 per cent. The
“Somehow, juvenile and narrow-minded impressions have cause for decline in overall growth rate is attributable to fall in
growth rate of industry and service sectors. The industry sector is Plan and Non-Plan Distinction Removed
crept in the economic sector that pro-people Government
means anti-development Government! But, our Government expected to grow at 2.2 per cent compared to 4.9 per cent during
The distinction between Plan and Non-Plan expenditure in
has succeeded in dispelling that myth. I wish to say with humility previous year while the service sector is expected to register a
the budgetary system was brought in when the plan model
that the Government that has been identified by the common growth of 8.5 per cent during the current year as compared to
of economic growth was adopted in the country. Over the
man as a pro-people Government, the same Government’s 10.4 per cent the previous year.
period, the Plan and Non-Plan bifurcation of expenditure has
administration and policy-programmes have succeeded in raising
contributed to fragmented view of resource allocations to
Bengaluru to the stature of the most dynamic city in the world,’’ Effect of Demonetisation various programmes and schemes. C Rangarajan Committee
he says. The same Government, which has been acknowledged
Demonetisation caused huge amount of distress to the public and the Administrative Reforms Commission (ARC) 14th Report
as pro-social justice, has propelled the State to the first position in
recommended that distinction of Plan
the country in terms of being investment-friendly, says the Chief
and Non-Plan to be done away with.
Minister. Some people believe that providing infrastructure itself
In line with the above, Government
is development. This is only a partial truth. Whatever it is, those
of India has done away with Plan,
who believe so should also not have much reservations about
Non-Plan classification from 2017-
the performance of our Government, he says. “During the tenure
18 budget. In line with the National
of our Government, schemes for development of infrastructure
initiative, the State Government has
in the State and Bengaluru are not merely on paper but are
decided to remove the distinction
before the people. Be it Bengaluru Metro, State Road Transport
between Plan and Non-Plan from FY
Corporation, which is getting award after award, upgraded State
17-18.
Highways across the State, industrial parks which have come
up all over, nobody can easily deny that these are the face of
Shri. Siddaramaiah Amendment to SC/ST Sub-Plan Act
development,’’ says Siddaramiah.
Chief Minister, Govt. of Karnataka Till now, 24.10 per cent of Plan was
considered for earmarking under
“It is my desire that the impact of development should reflect in the lives of people. I believe that Scheduled Caste Sub-Plan /Tribal
Sub-Plan and Non-Plan expenditure
this is the true measure of achievement of our Government. We always have an open mind to public was not considered in the base. This
opinion. ‘Jana Mana’ programme with beneficiaries of the schemes is a testimony for this. By re- will change as Plan and Non-Plan
specting the public opinion expressed there, we have made our schemes more useful for the people distinction will no longer be there from
by modifying them’’ says the Chief Minister. FY17-18. From this base, the exempted
expenditure that includes salary,
14 15
ADVANTAGE KARNATAKA
AN EXCELLENT
salary GIA, pension, administrative
expenditure, principal repayment and
interest payment on account of the
TRACK RECORD
State Government’s borrowing and
off-budget borrowings by the State
Government Undertakings and any
such expenditure of administrative
nature so notified by the Government to help small scale industries and regions outside the ambit
will be excluded. Allocable budget, On the fourth anniversary of his Government, Chief Minister of big industrial growth?
which is the total consolidated Siddaramaiah has started an aggessive promotion of the
schemes he has launched so far which mainly aim at making I firmly believe that the MSME segment is what creates and
fund expenditure less exempted
the life of the rural population better. sustains industrial growth. No large company can survive in
expenditure, will be used as a base to
today’s competitive world without a strong supplier base and an
calculate the SCSP/TSP allocation. 24.1 With barely a year to go for the Assembly elections, efficient supply chain. Taking a leaf out of the success of thriving
per cent of this base will be earmarked Siddaramaiah has made it clear that he would be highlighting MSME clusters and estates in the state, my government has
for SCSP/TSP, says Siddharamiah. the implemention of numerous welfare schemes over the last been keen to promote creation of more such estates. You cannot
four like the eight Bhagya schemes - Anna, Ksheera, Krishi, attract a Honda or Volvo or a Toyota or an Airbus without an
An Excellent Track Record of Four Vasati, Rajiv Arogya, Soura, Nirmala and Pashu. MSME ecosystem in the vicinity. Therefore, by design, all our new
Years
The Chief Minister says the achievements of his Government industrial areas have earmarked space for MSMEs.
The Chief Minister has elaborated include Bengaluru emerging as Startup Capital of India; law Being at the helm of one of the fastest growing states in India,
on the achievements of each sector preventing diversion of SC/ST welfare funds; law to regularise what do you propose to offer to the investors, businessmen
during the last four years and the plans = Power capacity enhanced by 5,848 MW land in favour of farm labourers; setting up of Skill Development
envisaged over the next one year, after which Karnataka would = Work begins on ‘Solar Energy Park’ at Pavaguda, the Department; pension to widows of farmers who committed
be witnessing the Assembly elections. biggest in the world suicide; and launch of Vidya Siri (students), Mansvini (women)
= Development works of 9,644 km of State Highways and Ksheeradhare (farmers) schemes.
Some among the numerous achievements are: completed
However, critics have accused Siddaramiah of giving priority
= Mobile one Project for e-Governance introduced
= Drought-proofing and risk mitigation work benefiting
to Ahinda (Kannada acronym for minorities, backward classes
= State has started benefiting from New Tourism Policy 2015
agriculture in Karnataka and Dalits) in his programmes. They point out that a majority
= ‘Jana Mana’ programme held in all districts
= Significant increase in disbursement of
of the schemes announced in all the five budgets he has
= Efficient computerisation of Regional Transport Offices
agricultural loans through cooperatives = 11 lakh houses built to make Karnataka a hut-free state presented has dealt with issues relating to this section of the
= Creating irrigation capacity for 6.2 lakh acres of land = Skill development, Entrepreneurship and Livelihood people. Still, the Congress high command has placed its full
= Field drains built for 4.4 lakh acres of land Department established faith in him. The party will fight the next Assembly elections
= Infant mortality reduced from 31 to 28 = Synthetic athletics tracks of International standards set up under Siddaramaiah’s leadership. Observers say he will be
= Maternal mortality down from 178 to 133 per one lakh live at various district stadiums playing the role Amarinder Singh enacted with stupendous
births = Annabhagya Scheme introduced n success in the Punjab elections recently. The clear victories the
= Six new Medical Colleges commenced Congress registered in Nanjangud and Gundlupet Assembly
byelections have made things easier for Siddaramiah.
The Chief Minister, who also holds the post of Finance
Minister, says of the 165 election promises his party made,
155 have been implemented. It is a fact that Siddaramaiah
has given a new direction and energy to the development of
Karnataka and its economy. He shares his vision and thoughts
in an interview with Advantage Karnataka.
As you lead the state with a host of progressive, pro-
investment policies, what is your assessment of the scope for
more growth and development in the agriculture sector?
The agri sector is wide and vast requiring concerted efforts from
all stakeholders for the next wave of development. Due to the
drought situation in the state over last few years, our farming
sector has been adversely affected. Also the sector historically
suffers from low productivity and large-scale migration of the agri
workforce to towns and cities. It is important that governments
step in to help find innovative solutions to the challenges faced
by the sector. I think that the next generation of farmers will
have to be technically and technologically equipped in order to
increase productivity, efficiency and yield. With this in mind, we
are keen to nurture and promote this segment of the industry
by creating an ecosystem where innovative concepts can bloom.
Facilitating the take-off of infrastructure projects and growth
centres across the state, you have succeeded in boosting the
industrial growth. What new initiatives do you have in mind
16 17
ADVANTAGE KARNATAKA
A FINE BALANCING ACT
and industrial stalwarts looking up to Karnataka? job-aspiring youth in certain core areas of expertise and try and
There are two key features which have made Karnataka push industry to those semi urban and rural locations in such a
highly attractive to investors – firstly our inherent strengths, way that jobs are localized and skill sets are aligned. This is a huge
and secondly the strengths we have acquired over the years. task but we are constantly making efforts in this direction.
D
However, no state can afford to relax on past laurels. Towards this r G Parameshwara has been holding the two crucial posts
Being the IT hub of India, Karnataka is home to over 400 of Home Minister of Karnataka as well as Pradesh Congress
end, my Government is leaving no stone unturned to build on
international R&D centres, and has around 400 of the Committee president with gusto. A large part of the
our strengths. Our aspiration is to make Karnataka unbeatable
Fortune Global 500 companies outsourcing their IT services credit for the victory registered by Congress in the byelection
through strong policy frameworks and a machinery which is
from Bengaluru. What is the next threshold of growth here? to two Assembly constituencies held earlier this year goes to
functional till the last mile. Therefore, be it further up-skilling our
workforce to world class levels through Government-Industry- We continue to see interest from investors in the areas of high- Parameshwara. As Home Minister, he has taken several measures
Academia partnerships, or encouraging use of technology end and futuristic technologies intending to set up R&D centres to ensure law and order in the State as well as increase the
through our startup initiatives, or providing industrial & support in our state due to the abundance of our technically advanced strength of the police force, apart from boosting the morale of
infrastructure by making massive investments, all steps are workforce. A large number of the R&D centres have been the personnel. With Karnataka all set to face Assembly elections
aimed in this direction. You will see that in the last four years, we established just in the last four years. While this is an encouraging in a year, Parameshwara lists his achievements and plans for the
have focused on making it convenient and seamless to conduct trend, we are also aware that new age startups will shape the coming months in an interview to Advantage Karnataka
business in the state. We want to create the best ecosystem future of the world we will live in. We see this as our next area for
for investments to thrive. Most importantly, my Government is job creation and economic growth. Karnataka is a leading state On the occasion of the Government celebrating its fourth
perhaps the most democratic and approachable Government as far as the startup ecosystem is concerned. More than 37 per anniversary, can you mention some major achievements as
in India. All my cabinet colleagues and government officials are cent of all Indian startups are located here. In 2015, we released far as the Home Department is concerned?
highly accessible and approachable. We are here to listen, take the country’s first startup policy with a startup booster kit to The biggest achievement is that this Government has been able
your feedback and if there are areas which require intervention encourage startups in the state. This kit has several incentives to maintain communal peace and harmony in the State. Barring
in order to speed up investments, we are available 24X7. and policy measures including a fund of funds to provide capital a few minor isolated incidents, general law & order has been by
Opportunities in Karnataka are limitless and government is here to startups. Besides, we have four incubation centres which are and large peaceful in Karnataka. Another achievement is that the
to discuss with you, with open minds and hearts. working closely with the Government to nurture and promote recruitment of PSIs and PCs in the Police Department, which was
startup ecosystem. These initiatives have been very well received not done for many years, was taken up on a priority basis. During
What initiatives would Karnataka be showcasing among the
by all stakeholders. the last three years, a total 23,761 officers and men have been
world leading technology clusters for Aerospace and Defence
industries that the state has developed under the aegis of its You have been in the forefront promoting young recruited.
pioneering Aerospace Policy? entrepreneurs with innovative ideas for revolutionary start-
up ventures, covering the entire gamut of market economy The Government has been taking several steps to increase
It is important to note that the Aerospace & Defence industry the strength of women police personnel. Can you elaborate?
and social outreach. What more fillip or stimulus do you
is unlike other industries. It takes several years, in fact, decades
propose? Emphasis has been given to recruitment of women in the Police
to develop. Karnataka’s A&D legacy began in 1940 with the
establishment of Hindustan Aeronautics Limited (HAL) and Lot of work is happening in the startup space in Karnataka. Some Department. For the first time, two women companies were Dr G Parameshwara
subsequently, with the establishment of DRDO and its various of the initiatives we have announced have to be followed up and inducted in KSRP. One batch has already been trained and is part Home Minister, Govt. of Karnataka
research labs. But for most part of the previous century, our implemented well because implementation will be key to the of the operational force. Besides, it has been decided to enhance
country was stifled by licence raj, making it difficult for private success of the policy announced. Our next agenda is to promote the women component in overall Civil Police Force to a minimum developed. Under the Safe Highway Project, the Government
sector to participate especially in this regulated sector, even after startups in rural areas with a view to localizing job creation, as I of 20 per cent by taking up special recruitment. has provided Rs 45 crore for 300 highway vehicles fitted with all
liberalization in 1991. The real growth of the A&D sector began in have already mentioned earlier. the modern equipment to ensure safe journey on the highways.
Can you explain the measures initiated by the Government
the 2000s when this sector began to get special attention with Last year, 100 Innova vehicles were introduced and grants have
What’s the larger picture for promoting tourism destinations to improve the working as well as the living conditions of the
a view to becoming self-reliant. In other words, ‘Make in India’. released for second batch of 100 vehicles. As the KSRP battalions
in the state? police personnel?
Keeping the nature of this industry in mind, our Aerospace & in the State are overburdened with the extensive development
Defence policy is a 10-year policy with firm milestones to be Tourism spots have to be promoted based on the kind of target The Government constituted a committee to look into the within the city one more battalion is being set up at Koratagere,
achieved at regular intervals. These include further promoting audience whom you wish to tap. Fortunately, we are a blessed anomalies in the pay and allowance of policemen and based Tumakuru. To reduce the burden on city-based battalions, for the
Bengaluru including the Aerospace & Defence park, the new state as far as tourism is concerned, with the choice of destinations on the findings of the committee an additional allowance of Rs first time in Karnataka, at one go 102 fully-equipped buses have
helicopter hub under the aegis of HAL which is coming up in that we can offer. Our Tourism Department has recently come 2,000 per month has been sanctioned. Karnataka is the only state been purchased for the use of KSRP constables for L&O duties.
Tumkur, our Aerospace technology centre which will come up out with a new strategy and marketing plan to reach out to the in the country which has taken up a massive and novel scheme
in Bommasandra besides showcasing some of our great success for housing of policemen under the Gruha-2020 programme You have been holding the post of KPCC president as well
target audience and I think you will see a lot of interest in all the
stories such as Dynamatic and Aequs. whereby 11,000 houses have been sanctioned for an amount as that of the Home Minister. How has been the experience
destinations we have to offer. From a state perspective we are
of Rs 1,818 crore. Another measure in this regard has been balancing the two crucial responsibilities?
With policy incentives, infrastructure and natural resources constantly improving the quality of service which is available at
the tourist sites. n regarding promotions. As PCs had to wait for their first promotion It has been a challenging task and is exciting also. I was
favouring investments in the IT, ITeS, biotechnology,
for almost 20 years, the Government restructured the police president at the party before becoming a Minister and Party High
engineering, electronics, automotive, textiles, agri and food
force up to ASI in proportion to 1:3:6 whereby around 12,000 Command allowed me to continue holding the responsibilities of
processing sectors, how do you envisage a more inclusive,
policemen were given one-time promotion at one go. This has the party even after becoming a Minister. It has been my nature
equitable strategy for development and growth across the
substantially brought down the waiting period for promotion. to carry all sections of the people with me and take decisions
urban-rural divide in the state?
The Government is committed to provide health facility to the based on consensus. I know the pulse of our party colleagues
Equitable growth has been the cornerstone of our Industrial retired police officers also on the lines of the Arogya Bhagya and they have extended cooperation at all levels to me. As such,
Policy 2014-19 which has given special emphasis to industrial Yojane. I do not find any difficulty in shouldering the responsibilities of
and socio economic development of the Hyderabad-Karnataka the party together with the administrative responsibilities of the
What steps have the police recently launched to increase the
region and the backward-most regions of the state. However, Home Department. My Department has efficient officers who are
safety and security of citizens?
urbanization is inevitable, and across the world we are witnessing vigilant all the time. I do not give room to any confrontationalist
movement of people from rural to urban areas in search of To ensure effective and prompt response from the police, attitudes. However much the BJP and communal organisations
employment. Karnataka is no different. Today, you will find advanced Dial 100 facility is being set up in Bengaluru city, which are attempting to bring a sense of insecurity among the
graduates from all over the state moving to cities like Bengaluru will be operational shortly. For the safety of women and children, vulnerable sections of the society, I have successfully stemmed
and taking up employment in sectors which are not their core Pink Hoysala Patrol vehicles have been launched in Bengaluru city, them. Both the responsibilities are being discharged effectively
area of education. My government’s endeavor is to upskill our Similarly, Apps for their safety and police assistance have been and am very humble to say is satisfying.
18 19ADVANTAGE KARNATAKA
Unity is Strength
The victory in the recent byelections to two Assembly seats be different. What plans has the Congress made to counter
would certainly boost the confidence of the Congress. As the BJP’s threat as well as retain power in the state?
PCC chief, you played a major role in ensuring the win. How
do you feel? The BJP has always been hyperbolic. The boastful nature of
the BJP has been understood by the electorate of Karnataka
Says Congress In-charge
The victory in the Assembly byelection has added more after three years of Central rule. The gap between the promises
responsibilities to me. The rank and file of the party worked very made and results delivered is very wide. The Karnataka voter
hard in these elections and we were able to reach the voters is intelligent to understand what BJP is. He also understands
with our sincere implementation of the promises made in the how Indian people are fooled by a sense of hypnotic nature of
election manifesto and the target groups who are beneficiaries campaign undertaken by Mr. Narendra Modi.
reposed faith in our party. As party president I am thankful to the
electorate and hope to continue the spirit till the next election It is true that the absence of JD(S) candidates in the
too. byelections helped our party in winning comfortably. But, 2018
elections will be a different scenario. Our party workers are
The Assembly elections are barely a year away. What lessons confident of accepting the challenges to return to power. The
have you learnt from the bypoll which would help the hollow promises of the BJP at the Centre are giving a nightmare
Congress plan its strategy for the crucial elections? to the people of Karnataka. As such we are confident that BJP
shall not cut much ice in 2018. The presence of JD(S) in a few
The lessons of the two Assembly by polls are very educating. constituencies of Karnataka will not block the Congress party
They have been an inspiration too. As I said earlier, the party from coming to power.
workers were enthused to work hard in the byelections. In the
coming Assembly elections too, we will sustain the same tempo The achievements of the Congress government are
and reach the voters with more vigour. unparalleled and our government’s concern to all sections
The Congress party is an advantageous position because of our of the society is appreciated by the people of Karnataka. The
programmes are reaching the citizens of Karnataka. The party is transparent administration of the Congress party is welcomed by
in a good health at the grassroots level and is capable of taking the people and there have been no lapses by our government
on the challenges of other parties. in implementing the social security benefits to the groups we
addressed.
The BJP has been belligerent as far Karnataka is concerned.
In the byelections, JD (S) did not field its candidates, which We are confident of reaching out to the voters in Karnataka
helped Congress. But in the 2018 elections, the scenario may and are convinced they will repose their faith in our party. n
ADVANTAGE KARNATAKA SUBSCRIPTION FORM
Shri K C Venugopal, AICC General Secretary in-charge of Karnataka and AICC Secretaries
Shri MadhuYakshiGoud, Shri P C Vishnunath, Shri Manickam Tagore, Dr Sake Sailjanath with
Chief Minister Shri Siddaramaiah, KPCC President Dr.G.Parameshwara and
NAME KPCC Working President Shri Dinesh Gundu Rao
T
ADDRESS he visit of a team led by K C Venugopal, all-India general young children have helped people belonging to all sections,
secretary of the Congress who is the new party in-charge particularly the marginalized,” said Venugopal.
of Karnataka, has brought in enthusiasm among the party
“The Government is going forward with major measures for
STATE COUNTRY PINCODE leaders as well as workers in the State.
the infrastructural development and to increase the quality of
the life of the people in the state. The people of Karnataka want
“I am very happy to know that there is an unprecedented
CONTACT NUMBER unity in Congress party in Karnataka. This unity will enable the
continuity of this development and welfare measures,” he said.
party to go forward with confidence and strength. Although
EMAIL ID “I express my full confidence and satisfaction in the works
there are some misunderstandings and issues, those are not
done by the Government over the last four years. This is also the
major problems. We will solve all these misunderstandings and
1 YEAR (12 ISSUES) RS.700/- opinion of the party workers and people,” he said.
CHEQUE divergent opinions through discussions and deliberations,” said
Dubbing the Karnataka Government under Chief Minister
Venugopal, who visited Bengaluru over three days from May
2 YEARS (24 ISSUES) RS. 1,350/- DD Siddaramaiah as “pro-poor and people-friendly”, Venugopal
9. Continuing, he said: “There are no rivalries or major issues
said, “The Government’s track record is excellent. But the
between the Government and the party. Both are entirely on
3 YEARS (36 ISSUES) RS. 2,000/- RTGS communication gap in disseminating the government’s schemes
good terms and are going forward with one voice.’’
and policies to the public has to be plugged.” The failure of
‘Govt Functioning Excellent’ the Government in promoting its programmes was one of the
CONTACT problems that the team highlighted during its visit.
PAYMENT DETAILS “We have 100 per cent satisfaction in the functioning of the
ADVANTAGE KARNATAKA Siddaramiah Government and the measures taken by it in
Aeromag Asia , Aeronautical Society of India Building, ‘Need to Strengthen Party, Publicity’
Cheque / DD in favour of the last four years. The Government has implemented and is
Suranjandas Road, Off Old Madras Road, Bengaluru 560075, still going ahead with popular and welfare measures. Welfare
AEROSUN MEDIA PVT LTD “The functioning of the party is also on a good track. However,
Karnataka, INDIA.
Payable at BANGALORE. schemes like Anna Bhagya, to make the State hunger-free; Krishi
Tel +91 94805 51925, + 91 80 -25604055 it is highly necessary to strengthen the functioning of the party to
Bhagya, to ensure irrigation for crops during critical stages to
Email: info@advantagekarnataka.in / www.advantagekarnataka.in face the coming election. We have initiated the activities aimed
combat drought effectively; and Ksheera Bhagya, to provide
for this purpose,” said Venugopal.
nutritious milk to help fight back the nutritional deficiencies in
20 21You can also read
