Karnataka Cabinet okays fire cess on new multi-storey buildings
Law Minister H K Patil announced that Section 15 of the Karnataka Fire Force Act, 1964, will be amended to include this cess, which would apply to commercial complexes, hospitals, educational institutions, industrial units, and residential apartments.
Patil explained that the cess will be calculated at 1 per cent of the property tax amount and collected to strengthen fire safety infrastructure and preparedness in urban areas.
'All institutions and structures to which the Fire Act is applicable will now be liable to pay this cess,' he said. He clarified that the cess would be mandatory for all qualifying properties, and the responsibility for payment lies with the builders or property owners.
The Cabinet has also decided to introduce a resolution to convert the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025, into a Bill in the upcoming Assembly session. The ordinance, originally promulgated on May 30, aims to ensure social security and welfare measures for gig economy workers. The state estimates that approximately 2.3 lakh full-time and part-time delivery workers are currently active across various platforms in Karnataka.
The state will soon set up a Payment and Welfare Fee Verification System (PWFVS) to digitally track every transaction and welfare fee deduction made towards gig workers' social security. Under the proposed rules, aggregators must calculate and remit a welfare fee ranging from 1 per cent to 5 per cent of each payout made to a gig worker. These contributions are to be deposited into a government-managed welfare fund every quarter through RBI-approved payment modes.
The Karnataka State Cabinet has also sanctioned the establishment of a Centre of Excellence (CoE) in Space Technology in Bengaluru, allocating a budget of Rs 10 crore over five years. The CoE will be set up as a Section 8 company under the Companies Act, 2013. The Satellite Communication Industry Association (SIA-India) will serve as the implementing partner and has been granted an exemption under Section 4(g) of the Karnataka Transparency in Public Procurement Act, 1999, Patil said.
The decision addresses the critical shortage of testing facilities, as Indian Space Research Organisation (Isro), Defence Research and Development Organisation (DRDO), and other government centers are currently operating at full capacity, prioritising their missions. With the startup sector producing around 30 testable prototypes monthly and facing a significant demand for testing infrastructure, the CoE aims to bridge the gap and support innovation in the space technology ecosystem.
The Cabinet has also granted administrative approval for establishing a peripheral cancer treatment unit under the Kidwai Memorial Institute at Rajiv Gandhi Super Specialty Hospital in Raichur. The estimated cost of the initiative is Rs 50 crore, which includes Rs 20 crore for civil works and Rs 30 crore for equipment. It will be funded by the Kalyana Karnataka Region Development Board. Additionally, the government has approved the establishment of Indira Gandhi Children's Health Institute in Bengaluru, which will feature a 450-bed hospital. The project is estimated to cost Rs 62 crore for medical equipment, furniture, and other requirements.
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