Dr. Nanjundappa Report

Dr. Dogganal Mahadevappa Nanjundappa (D.M. Nanjundappa)
 
High-Power Committee for Redressal of Regional Imbalances (HPCRRI) headed by the late D.M. Nanjundappa was submitted to the State Government in 2002, no serious effort had been made to implement the recommendations of the committee to find a permanent solution to the problem of inequality in development. Many taluks in north Karnataka had been deprived of their share in development.
 
The State Government had not formulated the special plans for the development of the region over eight years by spending Rs. 31,000 crore. HPCRRI had recommended to the Government to spend this amount in 2002.
 
HPCRRI after taking into consideration various parameters for determining the backwardness of the different parts of the State, had taken the taluk as the unit for determining backwardness.
Of the Rs. 31,000 crore to be spent in backward districts, the HPCRRI had said Rs. 15,000 crore would come from the normal budgetary allocation and the remaining should be spent as additionality at the rate of Rs. 2000 crore a year.
Apart from spending Rs. 500 crore additional amount for the backward regions as part of the increase in the plan size every year, the government has so far not formulated plans for spending Rs. 2000 crore every year to set right the imbalances in the development in the backward regions.
Government has missed the spirit of the recommendations. Backwardness was considered synonymous with north Karnataka.
Governament has not taken note of the needs of the backward taluks in South Karnataka.
Governments have failed to implement suggestions of committee since 2002
No permanent solution has been found for inequality in development since 2002.
The report had suggested that Rs. 31,000 crore be spent on developing taluks in 2002.
 
 
 
The High Power Committee for Redressal of Regional Imbalances constituted under the chairmanship of the noted Economist and Planner Dr.D.M.Nanjundappa has identified Bidar district as one among the most backward and assigned 19th rank in the (then) 20 districts on the basis of a composite index.  Further, the Committee has also identified four taluks as the most backward out of the five taluks in the district.
 
 
 
 
 
 
To classify various taluks of the State into 3 Zones for the purpose of focused attention:-
(i)
Zone-1 :- 79 Taluks - most / more backward Taluks as categorized by Dr. D.M.Nanjundappa Committee Report.
(ii)
Zone-2 :- 85 Taluks - [ Taluks not covered in Zone 1 & 3].
(iii)
Zone-3 :- 12 Taluks - of Bangalore Urban & Rural Districts [excluding Taluks of Kanakapura & Magadi] Mangalore and Mysore Taluks.
Details of Taluks indicated in
Annexure -B
ANNEXURE –B
Classification of Talukas in Karnataka into Zones for the purpose of administering graded scale of incentives & concessions
Sl. District Total ZONE - 1 ZONE-2 ZONE-3
No. No. of Most More Backward Industrially Tqs. Backward Tqs. Backward Tqs. Talukas Developed Talukas
1. Bangalore (U) 4 - - Anekal Bangalore [North] Bangalore [South] Bangalore [East]
2. Bangalore (R) 8 Kanakapura - Channapatna Magadi Devanahalli Doddaballapura Hoskote Nelamangala Ramanagaram
3. Chitradurga 6 Hosadurga Hiriyur Chitradurga Molakalmur Holalkere Challakere
4. Davanagere 6 Channagiri Honnali Davanagere Harapanahalli Jagalur Harihara
5. Kolar 11 Bagepalli Mulbagal Kolar Gudibande Chikkaballapur Gowribidanur Siddalaghatta Malur Bangarpet Chintamani Srinivasapura
6. Shimoga 7 - Soraba Shimoga Bhadravathi Sagar Shikaripura Hosanagara Thirthahalli
17
Sl. District Total ZONE - 1 ZONE-2 ZONE-3
No. No. of Most More Backward Industrially Tqs. Backward Tqs. Backward Tqs. Talukas Developed Talukas
7. Tumkur 10 Kunigal Turuvekere Tumkur Madhugiri Koratagere Tiptur Gubbi C N Halli Sira Pavagada
8. Chamaraj- 4 Chamarajnagar Gundlupet Yelandur nagar Kollegal
9. Chickmagalur 7 - Kadur Chickmagalur Tarikere Shringeri Mudigere Koppa Narasimharajapura
10. Dakshina 5 - - Bantwal Mangalore Kannada Puttur Sulya Belthangadi
11. Hassan 8 - Arakalgud Hassan Arasikere Channarayapatna Holenarasipura Belur Alur Sakleshpura
12. Kodagu 3 - - Madikeri Somawarpet Virajpet
13. Mandya 7 - Malavalli Mandya Nagamangala Maddur K R Pet Srirangapatna Pandavapura
18
Sl. District Total ZONE - 1 ZONE-2 ZONE-3
No. No. of Most More Backward Industrially Tqs. Backward Tqs. Backward Tqs. Talukas Developed Talukas
14. Mysore 7 H D Kote Hunsur Periapatna Mysore T N Pura K.R. Nagara Nanjanagud
15. Udupi 3 - - Udupi Kundapura Karkala
16. Bellary 7 Sandur Siraguppa Bellary Kudligi H B Halli Hospet H Hadagali
17. Bidar 5 Bhalki - Bidar Humnabad Basavakalyan Aurad
18. Gulbarga 10 Sedam - Gulbarga Shorapur Yadgir Chitapur Afzalpur Shahapur Aland Chincholi Jewargi
19. Koppal 4 Kustagi Koppal Gangavathi Yelburga
20. Raichur 5 Sindanur Raichur Manvi Lingasugur Devadurga
21. Bagalkote 6 Bilagi Hunagund Bagalkote Badami Mudhol Jamkhandi
19
Sl. District Total ZONE - 1 ZONE-2 ZONE-3
No. No. of Most More Backward Industrially Tqs. Backward Tqs. Backward Tqs. Talukas Developed Talukas
22. Belgaum 10 - Athani Belgaum Gokak Khanapur Soundatti Hukkeri Ramdurg Bailahongal Chikkodi Raibag
23. Bijapur 5 Muddebihal - Bijapur B Bagewadi Indi Sindgi
24. Dharwad 5 - Kalghatagi Dharwad Hubli Kundagol Navalgund
25. Gadag 5 - Mundargi Gadag Nargund Ron Shirahatti
26. Haveri 7 - Savanur Haveri Shiggaon Ranebennur Hirekerur Byadagi Hanagal
27. Uttara 11 - Supa Karwar Kannada Bhatkal Haliyal Sirsi Mundagod Yellapura Honnavar Ankola Siddapura Kumta
Total No of 176 39 40 85 12 Talukas
20
ANNEXURE - C
Incentives & Concessions for Mega, Large & Medium and Small Scale Industries
Sl. Type of Incentives Mega Large & Small Scale Industries No. Industries Medium Industries
1
Capital Investment Nil Nil Zone-1 : 25% of the value of fixed assets, subject Subsidy to a maximum of Rs. 15 lakhs per unit.
Zone-2 :
20% of the value of fixed assets, subject to a maximum of Rs. 10 lakhs per unit.
Zone 1 & 2 :
Addl. Subsidy of 5% of the value of fixed assets, subject to a ceiling of Rs. 1 lakh for SC /ST / PH / Minority & X-Serviceman entrepreneurs. In case of women entrepreneurs, the ceiling for additional subsidy would be Rs. 5 lakhs.
Note: This incentive is available only to units financed by KSFC/KSIIDC/ Banks/Other financial institutions.
Zone 3
: Nil
2
Exemption of Currently available under Energy Dept Policy Continued upto 2011. Electricity Duty on Captive power generation
3
Exemption of Zone-1: Full exemption. Stamp Duty & Zone-2: 75% exemption Reduction of Zone-3: Nil. Registration Stamp duty : In respect of Loan & Credit deeds executed for availing term loans charges from FIs / Banks and for execution of Lease, Lease cum Sale & absolute Sale Deeds by KIADB / KSSIDC in respect of Industrial land /plots allotted.
Reduction of Registration charges
: Concessional registration charges at Re.1 per Rs. 1,000. 21
Sl. Type of Incentives Mega Large & Small Scale Industries No. Industries Medium Industries
4
Waiver of Zone-1: Full exemption Zone-1: Full exemption Zone-1 : Full exemption conversion fine:- subject to a maximum of subject to a maximum of subject to a maximum of (on lands converted 50 acres per unit. 25 acres per unit. 10 acres per unit. for industrial use)
Zone-2:
75% exemption Zone-2: 75% exemption Zone-2 : 75% exemption subject to a maximum of subject to a maximum of subject to a maximum of 25 acres per unit. 25 acres per unit. 10 acres per unit.
Zone-3 :
Nil Zone-3 : Nil Zone-3 : Nil
5
Acquisition & In respect of lands acquired for development of industrial area / estates or single unit allotment of land complex KIADB acquisition charges to be levied is 28% in respect of areas in through KIADB Zone: 3. For the areas in Zones 1 & 2 acquisition charges would be 10%.
6
Subsidy for setting One time capital subsidy up to 50% of the cost of ETP, subject to a ceiling of up of Effluent Rs. 100 lakhs per unit for all categories of industries for all Zones. Treatment Plants [ETPs]
7
Entry Tax & Special Zone 1 & 2: Entry Tax (i) 'ET & Special ET exemption on "Plant & Machinery and Capital Goods" concessions for an initial period of 3 years from the date of commencement of project implementation. For this purpose, the term "Plant & Machinery and Capital Goods" also includes Plant & Machinery and capital goods i.e., equipment etc which is put up in the power project units for captive generation of Electricity.
(ii)
On raw materials, inputs, component parts & consumables (excluding petroleum products) [wherever applicable] for a period of 5 years from the date of commencement of commercial production.
Zone-3:
Nil
8
Human Resource (i) Grant of up to 5 acres of Government land will be considered along with capital Developments contribution of 50% of the project cost subject to a ceiling of Rs.2 crores per Training Establishment for sector specific training.
(ii) Recurring cost for running the training institution an amount of Rs.750/- p.m./ per trainee will be provided subject to a ceiling of Rs.15 lakhs per year for period of 3 years.
(iii) Government will launch a new scheme to provide Rs.750/- p.m. stipend with suitable matching contribution by training institutions for on-the-job training of unemployed educated youth for training in different vocations through industrial / service establishments.
22
Sl. Type of Incentives Mega Large & Small Scale Industries No. Industries Medium Industries
9
Technology Nil Nil Zone 1 & 2: Upgradation (i) Existing scheme of 4% interest subsidy for TU loans availed from KSFC / KSIIDC shall be extended to cover TU loans availed from scheduled Commercial Banks, which are not covered under CLCS Scheme of Govt. of India.
Zone 1, 2 & 3:
(ii) Existing incentive scheme for SSI units going in for BIS product certification or ISO series certification is continued with enhanced financial allocation. (iii) Encouragement to Patents Registration : Subsidy at 50% of the cost of Patents registration, subject to a ceiling of Rs. 2 lakhs per unit.
Funding will be provided for certain commercially viable research projects in collaboration with IITs, universities and other reputed institutions. An amount of Rs. 25 crores is earmarked for this purpose during the policy period.
10
Industrial Infrastru- A separate Infrastructure Upgradation Fund of Rs. 500 crores would be created for cture Development/ upgradation of infrastructure facilities in existing industrial areas / estates and also Common infrastru- for maintenance. This fund may also be utilized for new industrial areas. Separate cture / facilities in guidelines would be issued for utilizing this fund. Notified Industrial Clusters
11
Agriculture Produce APMC Cess in respect of direct procurement of agriculture produce for processing Processing from farmers by processing industries is exempted. Industries – Exemption of APMC Cess 23
ANNEXURE – D
List of Industrial activities / Units In-eligible for Incentives & Concessions
Sl. Activity No
1 Breweries & Distilleries of all types
2 Units utilizing molasses / rectified spirit / denatured spirit as main raw material for manufacture of potable alcohol
3 Khandasari units
4 Photo Studios & Color processing units
5 Photo Copying & Xerox Machines
6 Fertilizer Mixing
7 Re-packing of Drugs / Medicines / Chemicals, without any processing or value addition
8 All types of Saw Mills
9 Beedies / Cigarettes / Cigars / Gutka & Tobacco based products
10 Azoic / Reactive Dyes
11 Fire Crackers
12 Industries manufacturing and or utilizing Ozone depleting substances
13 Power Laundries
14 Brick making units Excluding Cement Hallow Blocks, wire cut & fly ash Bricks
15 Poultry
16 Popcorn & Ice candy making units
17 Coffee Roasting and Grinding
18 Clock and Watch Repair shops
19 Cassette recording [Audio & vedio]
20 Cyanide
Comments