Karnataka budget has sops aplenty for industries

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The Karnataka government in its budget for 2009-10 has come up with a few moves that could bring relief to several ailing sectors like the garment and textile industry, automobiles and tourism.

In his budget speech on Friday, Karnataka chief minister B S Yeddyurappa said 10 apparel clusters will be set up in the state in 2009-10, with the help of private partnership. These apparel parks will be set up in Gulbarga, Bellary, Hubli, Belgaum, Bagalkot, Shimoga, Davanagere, Mysore, Ramanagar and Chikballapur. An amount of Rs 40 crore has been provided in the budget to provide basic facilities in these clusters.There are about 1,500 garment production centres in and around Bangalore, where 5 lakh workers are engaged.

The chief minister also announced some initiatives for the industrial development of north Karnataka. As part of this, a steel zone will be established in an area of 10,000 acres in Koppal, Bellary and Bagalkot districts. There is also a move to establish an auto park in Bidar district and a spices park in the district of Haveri.

For tourism, an amount of Rs 180 crorre will be provided for supporting the development of tourism in the state. Tourist places like Hampi, Badami, Halabeedu, Belur and Jog will be further developed using this fund.

The government has also decided to provide significant exemption on life-time tax with respect to electric vehicles. The budget has proposed to decrease the tax with respect to electricity run cars, vans and two-wheelers from 8-12 per cent to 4 per cent on their selling prices. This will act as a relief for electric cars such as Reva.
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