India with abundant resources has a large number of Large and Small Scale industries throughout the country. In spite of the ease-of-doing-business reforms from the government, around 31 large-scale industries have been closed down making 4,257 people lost their jobs. Large and Medium Scale Industries Minister of Karnataka Jagadish Shettar told, “There is no link between the industries that closed and our drop in the ease of doing business rankings. They have their own reasons for the closure”. Out of 31 large and medium scale industries that shut their operations, 19 were located in North Karnataka where the government concentrates more to attract investments. An approximate number of over 2000 people was suffered due to the closure of Falcon tyres, Flair Garments, Indus Fila and Zenith textiles in Mysuru district.
Hindustan Coco Cola Beverages closed their unit in Koppal due to “lingering labor issues”, the government said. 2.68 lakh people were employed in the remaining 511 large and medium scale industries. Due to the closure, Karnataka loses its 8th position in ease of doing business ranking by the Department for Promotion of Industry and Internal Trade (DPIIT) and moves to 17th position. But the minister dealt with the ranking as the ranking was based on a period when the state witnessed political instability and also the guidelines used for rankings are not right and we have challenged the rankings and several other states has raised their objections.
The ministry sources revealed data about its clearance of 147 projects worth INR Rs.22,110.84 crore assuring 54,736 jobs. State High-Level Clearance Committee (SHLCC) meeting was held on September 30 under CM BS Yediyurappa cleared six projects worth INR Rs.15,544.06 crore employing 21,028 persons. The State Level Single Window Clearance Committee (SLSWCC) meetings held on August 19 and October 1 under Shettar has approved 141 projects worth INR Rs. 6,566.78 crore generating 33,708 jobs. The minister added amendments in the Karnataka Industries (Facilitation) Act were made which gives the confidence that ease of doing business rank will be improved. The important amendment is the temporary clearance to establish industries compared to three years' time previously, is working on automated trade license renewal and streamlining industrial inspections.
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