Industry-Government partnership to facilitate effective implementation of Industrial Policy All Industry Associations

CM’s Vision The vision of this policy is to build a prosperous Karnataka through inclusive, sustainable and balanced industrial development thereby creating large employment opportunities. – Honourable Chief Minister, GoK on the Karnataka Industrial Policy 1.To maintain an industrial growth rate of 12 % per annum. 2.To enhance the contribution of manufacturing sector to the State GDP from present level of 16.87% to 20% by end of policy period 3.To attract investment of Rs lakh crore 4.To create employment opportunities for 15 lakh persons 5.To create an environment to enhance ease of doing business in the State. 2

Progress of Manufacturing Industry in the State and the purpose of the Industrial Policy 2019 (avg. of last 5 years, constant prices)* Existing Picture Vision of the industrial policy next 5 years GDP5.02%*12.0% p.a. Manufacturing as % of GDP16.87%*20.0% ( 25% by 2025) Industrial growth rate2.74%*12.0% Employment13,50,00015,00,000 (100 million by 2025) Investment 12,60,276 Cr (SHLCC Data as on Dec 2014 ) 5 lakh crore Power14, MW (as on Nov 2014) Revenue from Industry11,487 Cr 3

All Industry –Chamber Association 4

Karnataka Industry Potential Medium Term Revenue Rs. 1,36,249 Cr Factories 9825 Employ- ment 13.5 lakhs Revenue Rs. 2,00,000 Cr Factories Employ- ment 20 lakhs + 5 Always at Leading Edge of Technology Good Industrial Ecosystem Vast Talent Pool Good Working Environment

Industry Facilitation Committee Powering the Industrial Policy through a unique government- industry collaboration

The Industry Facilitation Committee  The Industry Facilitation Committee (IFC) is a government-industry collaboration to support the vision and enable the objectives of the Karnataka Industrial Policy by working together to “Create an environment to enhance ease of doing business in the State.”*  Constituents of the IFC  Chief Secretary – Govt. of Karnataka  Representatives of relevant government departments (Finance, Power, Labor, Infrastructure, KIADB)  Nominated representatives from Industry Associations * Karnataka Industrial Policy

Rationale for selection of constituents  Chief Secretary, Govt. of Karnataka  The Chief Secretary will be able to align the efforts and energies of participating government departments, and provide his guidance on matters requiring facilitation of the government to achieve the goals elaborated in the Karnataka Industrial Policy.  Relevant Government Departments  Representatives from relevant government departments - Finance, Power, Labor, Infrastructure, KIADB to align and integrate efforts to achieve the objectives of the policy under the leadership of the Chief Secretary  All Industry Chamber-Association (AICA)  AICA as an association of Indian businesses works to create an environment conducive to the growth of industry in the State. Being a non-government, not-for-profit, industry-led and industry-managed organization, it is respected for playing a proactive, pro-industry, non-partisan role in India's development process. 8

Industry Facilitation Committee Chief Secretary, GoK Chairman Principal Secretary, Commerce & Industry, GoK / Other? Co-Chairman Nominated members from Industry Nominated members of government departments (Finance, Power, Labor, Infrastructure, KIADB) 9

Objectives of the Industry Facilitation Committee (IFC)  Create and implement a common industry view to achieve the vision of the Karnataka Industrial Policy.  Work collectively to remove structural systemic bottlenecks to facilitate entry and functioning of industries in Karnataka.  Work collaboratively with the Govt. for a dramatic reduction of Lead time to set up an Industry & ensure a good experience for the investor.  Work collaboratively with the Govt. on attracting quality investments in sunrise sectors.  Work collaboratively through periodic reviews and facilitate actions to achieve the objective. 10

Criteria for membership to the Industry Facilitation Council  Associations with 1000 or more members  Associations who conduct an Annual General Meeting (AGM) and elect their Office Bearers.  Associations registered under Registrar of Societies  Associations with more than 20 years of experience  Associations with District Industrial Centers 11

IFC members from industry  Convener : One representative from Industry Associations will be the convener of the committee by rotation. The Convener will be changed every quarter. The convener will also be the spokesperson for the committee with the media. (Government officials will not take on the role as Convener of the IFC)  Member representation on Committee : Every Chamber/Association will have only one member as representative on the Committee. (Multiple attendees from a given organization will be strongly discouraged). 12

Responsibilities of the Chief Secretary  Chair the Industry Facilitation Committee meeting conducted once in 2 months/quarter  Nominate members from Government departments to participate in the deliberations of the IFC  Be a signatory to the minutes prepared in the meetings  Review the progress of actions as per committed timelines before every meeting  Be the single point for ‘escalations’ if any, on any matter pending action 13

Responsibilities of the Convener  Responsibilities :  Conduct a meeting of the IFC (Industry Facilitation Committee) once every quarter/2 months  Prepare an agenda for the meeting & it to members 10 working days before the meeting.  Prepare the minutes of the meeting & circulate it among members within 2 working days of the meeting  Maintain records of all meetings  Represent the IFC in the media as spokesperson 14

Good Conduct Guidelines  No representative will be allowed to raise any problem/issue related to a specific organization. Only industry related issues will be entertained in the meetings of this Committee.  Being a member of the IFC does not subordinate the right of a Chamber of Commerce / Trade Association to interact directly and independently with Government and its departments. The IFC is intended to be an additional forum to address problems faced by industries.  The IFC may invite experts/companies/academic institutions to participate in committee meetings as ‘GUESTS’ to share perspectives and insights as appropriate to the discussions in that specific meeting 15

Industry Facilitation Committee - Focus Areas 16

Facilitate “Ease of Doing Business” KIP Sec Facilitation Mechanism and Procedural Reforms  Goal of the IFC  Significantly reduce ‘lead time’ (from Application to Start of Production)  Reduce the internal workload of government departments  Provide clear view of Project Status to Investor & Govt. Agencies  Enable the achievement of project objectives 17

‘G en ie’ ಜಿಎನೈ (Government ‘n’ Industry Initiative to promote Effectiveness )  Actions going forward :  Seek the support of the Honorable CM and CS for creating an Industry Facilitation Committee to further the vision of the CM in the KIP  Once approval is obtained:  Create a team  Organize a facilitated workshop to  Create a mission document  Assign responsibility areas  Co-create a score card for the initiative ( with accountability defined)  Periodic reviews (min once in 2 months) with Honorable CS  Half yearly review with CM 18

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