Times News Network 
 
BANGALORE, Mar 1: The state government announced its five year industrial policy (2009-14) whose main focus is to create 10 lakh new jobs and attract Rs 3 lakh crore investment by the end of 2014. Karnataka today also unveiled its much awaited Special Economic Zone (SEZ) policy.

The SEZ policy allows companies to set up units even on single crop agricultural land besides on waste, karab and dry land. SEZs, declared as industrial townships will function as self governing and autonomous municipal bodies.

An important goal of the industrial policy is to enhance the contribution of manufacturing sector to the state GDP to 20% in five years from the current 14.6%. Towards this sector specific zones — steel, cement, sugar, automobile, food processing, IT and BT, readymade garments, pharmaceuticals and tourism — are to be developed.

To make Karnataka an attractive industrial destination, many concessions and subsidies were announced, prominent being the stamp duty exemption to the extent of 75% to 100% in respect of all categories of industries as well as entry tax exemption to all industry.

Other highlights of the policy are conversion fine exemption from 75% to 100% in respect of all categories of units converting agricultural land; production linked investment subsidy of Rs 5 lakh to Rs 35 lakh to micro, small and medium industries;exemption from payment of APMC cess;interest free loan against VAT payment by large and mega scale industries;exemption from payment of electricity duties;incentives and concessions to export oriented industries; 20% of the developed land reserved for medium, small and micro enterprises and 1,000 to 2,000 acres of land in each district to be acquired and developed to attract industries.