In June 2008, the state government approved more than 2,400 hectares of land for setting up 45 special economic zones (SEZs) in Karnataka. This is expected to attract an investment of Rs 24,000 crore. A total of 6,244.4 hecatares is needed for SEZs in Karnataka.
The government expects about 10 lakh (1 million) jobs to be created in the next few years.
The approved SEZs include 33 IT/ITeS companies with investment worth over Rs 18,000 crore. The land requirement for SEZs in IT/ITeS is 712.95 hectare and will provide direct employment to 615,500 people.
|Sector||No of SEZs||Total Investment in INR Crore
|Sector-specific Product SEZs (e.g. garment, automobile)||7||1,824|
Investment to the tune of Rs 3,384 crore and earmarking 112 hectres exclusively for airport-based SEZ has been formally approved. The Centre has given in-principle approvals to only 8 SEZs in Karnataka having total investments of Rs 20,220 crore, including Rs 400 crore from IT/ITeS sectors.
Major and Medium industries minister Murgesh R Nirani said the government would not acquire fertile lands for SEZ.
Much appreciated! Farmers will be taken into confidence before acquiring the land. 20% of the developed land will be held by the farmers from whom the government acquired the land. Also, one member from the farmer’s family will be given employement in the SEZ.
Drying lands, where single crops can be grown, can be acquired from the farmers on a consent basis. If more than 50% of the farmers in any specific location earmarked for SEZs are not in favor of parting with their land, the promoters will not be permitted to pruchase land in such locations.
SEZ Zones In Karnataka
- Steel Zone: Bellary, Koppal, Raichur district
- Cement Zone: Bagalkot, Bijapur, Gulbarga, Bijapur
- Food Processing Zone: Shimoga, Mysore, Bijapur, Bagalkot, Kolar, Bangalore Rural
- IT-ITeS/BT Zone: Mangalore, Mysore, Hubli-Dharwad, Belgaum
- Automobile Zone: Dharwad and Bangalore
- Readymade Garment Zone: Bangalore, Bellary, Mysore
- Petroleum, Chemicals And Petrochemicals Complex: Mangalore and Udupi
Karnataka SEZ News
- Worked up over SEZ tax holiday
Fiscal incentives such as tax holiday benefits are often provided by the government with a view to achieve certain economic and social objectives, such as stimulating investments, generating employment opportunities, etc. However, it currently appears that with moderate corporate tax rates, the tax holiday benefits provided by the Income-tax Act, 1961, are progressively being reduced and/or phased out.
- Govt will not acquire land for SEZs: HDK
Karnataka Chief Minister H D Kumaraswamy on Tuesday emphatically stated that the government would not involve itself in acquiring land for special economic zones and investors would have to deal directly with the farmers.