‘Reforms announced by Centre will boost industrial activity in K’taka’

Team Udayavani, May 17, 2020, 7:40 AM IST

Bengaluru: Karnataka would benefit from the fourth tranche of the economic stimulus package announced by Union Finance Minister Nirmala Sitharaman as it would boost industrial activities as well as generate employment, Chief Minister B S Yediyurappa said here on Saturday.

The government on Saturday announced an easing of limits on Foreign Direct Investment in defence manufacturing, privatisation of six more airports, opening up of more air space and allowing private sector in commercial coal mining.

It also announced structural reforms in the mining of minerals.

“The policy changes in the mineral sector will complement the state’s mineral policy.

Our state has several mineral deposits and mining is thereby allowed,” the Chief Minister said in a statement.

The present laws on mining were cumbersome, the Chief Minister said, adding that activities can heneforth be carried out without much hurdles.

This will help generate more employment opportunities in the state, he said.

“The state has abundant mineral deposits of iron, copper, gold, quartz and uranium. Mining these minerals will help the State s economic growth.

Private participation in mining will prove profitable to the state,” Yediyurappa said.

The Chief Minister also opined that investment in sectors like defence, space, civil aviation and planetary exploration will benefit Karnataka.

As the state has many manufacturing units in these sectors, ancillary units complementing these sectors will be established, Yediyurappa said.

“The financial policies which were announced today will save foreign exchange.

Private participation in the Atomic Science sector will also benefit our State,” the Chief Minister stated.

He said during his Davos tour, many space and defence sector companies had evinced interest in investing in Karnataka, which can now be realized.