Karnataka to set up separate body to oversee investment in special investment areas

The Karnataka Cabinet on Thursday decided to set up a new authority under the industries department to monitor investments in special investment areas. The government has decided to set up special investment zones at Tumakuru and Hubli on a pilot basis, before adding other regions.

The authority will have wide ranging powers including identification of land to form industrial suburbs, and fixing and collection of taxes. The government has proposed to give 30% of taxes collected this way to the local body concerned.

The government will place a Bill on the formation of this authority in the next assembly session, and it will initially work under the supervision of Karnataka Industrial Areas Development Board (KIADB). Gujarat already has such a body functioning, Law & Parliamentary Affairs Minister JC Madhuswamy said.