New Delhi, Dec 27 (IANS): Karnataka Chief Minister Jagadish Shettar Thursday advocated the "liberalization of labour laws and an 'exit policy' for boosting the morale of the manufacturing sector".

Shettar made these suggestions at the National Development Council meeting held in the national capital to approve the 12th Five Year plan.

He noted that the 12th Five Year plan "has rightly focused on the need for promoting manufacturing sector for sustainable economic development of the nation".

In this connection, he said, liberalization of labour laws and an "exit policy"; central funding of industrial infrastructure projects in the states; and an end to "inordinate delays in giving environmental clearance to the industrial projects" could be considered.

Shettar was critical of what he termed as the plan document's "inherent approach to centralize the public resources with government of India in terms of deciding priorities and nature of development schemes".

He said the country's resources should be allocated to the state and central plans equally and "the entire central assistance to states should be untied".

On the needs of Bangalore, he said the city "is the IT Capital of India" but "is facing a severe deficit of infrastructure, resulting in major constraint on the export potential".

"The required investments are beyond the sustaining capacity of the civic agencies and the state," Shettar said while urging the central government "to consider special grants to enhance the urban infrastructure facilities in Bangalore".