Latest news with #KarnatakaSpecialInvestmentRegionAct
Time of India
2 days ago
- Business
- Time of India
Bengaluru's Peenya Industrial Area gets special investment region status
Bengaluru: Peenya Industrial Area, once hailed as the largest industrial hub in Southeast Asia but now struggling with deteriorating infrastructure, has been officially recognised as a Special Investment Region (SIR) by the Karnataka govt. Tired of too many ads? go ad free now This would facilitate the creation of an Industrial Township Authority. According to a govt notification issued on June 9, Peenya's 1st, 2nd, 3rd, and 4th phase industrial areas—covering a total of 1,461.5 acres—will be brought under the purview of the Karnataka Special Investment Region Act-2022. The Karnataka Industrial Areas Development Board (KIADB) has been appointed the designated Industrial Township Authority for Peenya. Under this framework, KIADB will be responsible for collecting property taxes from industrial units in the area. Of the total tax collected, 70% will be allocated towards the development of civic amenities, including road infrastructure, sanitation, waste management, and other essential services. The remaining 30% will be remitted to the Bruhat Bengaluru Mahanagara Palike (BBMP). A senior official from the department of commerce and industries said: "The establishment of an Industrial Township Authority will ensure better utilisation of tax revenue for enhancing civic infrastructure and addressing the specific needs of industrial units. ELCITA, which regulates Electronics City, has set a strong precedent for how such townships can be successfully managed. Across the state, we now have 18 Special Investment Regions developed under the Karnataka Special Investment Region Act. " KIADB is expected to roll out mechanisms for tax collection from industries within Peenya. Home to 3,500 industries Industrial representatives welcomed the move, calling it a major breakthrough. Tired of too many ads? go ad free now The designated region is home to nearly 3,500 industries and provides employment to over 8 lakh people. The demand for township status dates back to the 1990s. While Electronics City has long had its own township authority, Peenya—despite being a manufacturing powerhouse—remained without one. Peenya's industrial foundation was laid between 1970 and 1974 after the Karnataka Industrial Areas Development Board (KIADB) acquired the land in 1969. The estate developed over four phases across 1,800 acres, with parts handed over to other local administrations to support small and micro enterprises. Additionally, the broader area includes 25 privately managed industrial pockets. A Regional Development Authority comprising 13 members will be formed and it will function as a special-purpose vehicle under the state govt. Industrialists said the move could finally resolve long-pending issues related to poor roads, drainage, lighting, traffic management, and civic amenities, and help attract fresh investment. Box - 1 Shiva Kumar R, president of Peenya Industries Association Until now, we've had to route our grievances to two MLAs and six BBMP ward leaders. However, this new authority will centralise decision making. We've paid taxes for decades but received little in return—because we aren't a vote bank. Now, with a dedicated body, we can expect proper roads, lighting, drainage, and water. Peenya contributes 45% to India's machine tool supply, with strong ties to the auto, space, and garment sectors. Better infrastructure can push growth further Arvind Burji, industrialist and former president of PIA and KASSIA This was a big step but Peenya still has a long way to go. Peenya makes everything from pins to aircraft parts, but infrastructure is our biggest roadblock. We've been demanding township status since 1996–97 for planned amenities like drainage, housing, and civic facilities. Today, even a 5 km commute takes over an hour due to traffic. Without better infrastructure, banking support, and vendor networks, investors won't come here Prakash Raikar, a metal industry owner at Peenya IInd Stage since 1987 I've witnessed Peenya's growth over the years, but our decades-old demand for township status hasn't moved much—ownership still rests with KIADB. We're glad about the special status, but cautious. Despite being major revenue contributors, development funds rarely come back to us Jacob Crasta, eco-friendly packaging industry owner at Peenya IInd Stage for the last 48 years Since we are not voters in the area, most of the revenue we generate is not being used for our development, resulting in the current dismal infrastructure. Now, with a dedicated body in place where our voices and demands can be heard, we believe we can develop ourselves like ELCITA MG Balakrishna, chairman, FKCCI Peenya, one of the oldest industrial hubs, has long deserved this recognition—ideally, it should have come much earlier. We have called for equal representation from local industries in the committee to ensure effective implementation Box - Key demands of stakeholders - Immediate upgrades to roads, stormwater drains, and street lighting to ensure smooth movement and worker safety - Instalment of a Common Effluent Treatment Plant to support over 600 electroplating and chemical-based units. - Regular and scientific waste collection - The new authority must be empowered with full township-like autonomy, similar to what Electronics City enjoys under ELCITA - At least 70% of tax revenue generated from Peenya must be reinvested locally to improve core infrastructure and services. Box - How SIR will be a game changer - A single-window governance system will replace the current maze of MLAs, multiple BBMP zones, and departments, reducing delays. - Infrastructure projects like roads, power upgrades, and water supply will get cleared and executed much faster. - Improved facilities and streamlined operations will attract new domestic and international investments to the region. - Expected to generate four lakh jobs, particularly in machine tools, automotive, aerospace, and garment manufacturing. - With better support, the current 45% contribution to India's machine tool would boost further.
The Hindu
2 days ago
- Business
- The Hindu
Peenya Industrial Area notified as special investment region; industry bodies laud move
The Karnataka government has issued a notification declaring 1,461.46 acres of the Peenya Industrial Area as the Peenya Special Investment Region. Phases 1, 2, 3, and 4 of the industrial area have been brought under the region. Under the new scheme of things, 70% of the property tax collected from the region will be utilised for infrastructure development and maintenance in the region. The remaining 30% will be shared with the local body. The Karnataka Industrial Areas Development Board (KIADB) will be the regional development authority for the industrial township. 'The Peenya Special Investment Region shall be deemed to be an industrial township and the Government of Karnataka hereby declares that the Karnataka Industrial Areas Development Board (regional development authority) be the industrial township authority,' read the notification. Special benefits One of the most important features of a special investment region is that the local authorities will have no jurisdiction over it. As per the Karnataka Special Investment Region Act, 2022, the township will be managed by the regional development authority, which will be responsible for its development, operation, regulation, management, and infrastructure development. The Act was introduced to enhance the State's position as a global manufacturing hub with improved management of large industrial clusters in the State. According to industry bodies, the establishment of the special investment regions will create a more favourable environment for businesses by avoiding bureaucratic clutter, attracting more investments, facilitating better infrastructure amenities, and creating more jobs. Praise for the move The notification makes Peenya Industrial Area the 18th special investment region in Karnataka. Industry bodies such as Karnataka Small Scale Industries Association (KASSIA) and Peenya Industries Association (PIA) have welcomed the notification and hoped that the industrial area would see a facelift in the coming days. M.G. Rajagopal, president, KASSIA, said that declaring the industrial estate as a special investment region is an upgrade from its present plight and would help boost businesses in the region. 'We welcome the declaration and hope to see that the Peenya Industrial Estate is remodelled,' he said. Shiva Kumar R., president of the PIA, thanked the Government of Karnataka, while noting that the expectation, however, had been for a Peenya Industrial Township Authority similar to the Electronics City Industrial Township Authority (ELCITA) — a demand raised as far back as 2002. 'Earlier, 80% of the industrial area would come under the Dasarahalli constituency and 20% under the R.R. Nagar constituency. For any grievances, we had to shuttle between both administrative offices. Now it has come under a single body,' he said. 'Inadequate representation' Some concerns, however, seem to remain unaddressed. One of them is the constitution of the regional development authority. The industry bodies criticised that the representation of the industrial fraternity in the 15-member committee is a miniscule two. 'More representation from the industrial fraternity will ensure better development of the industrial layout, as we know the region better. At least 50% of the committee members should be from the industrial fraternity,' said Mr. Rajagopal, noting that the industry bodies have requested the same to the Chief Minister. Seconding it, Mr. Kumar remarked that a township authority would have given the industry fraternity more representation. He hoped that the government would consider modifying the committee to increase the number of industry representatives. Neglected region Peenya Industrial Area, established in the early 1970s, houses around 13,000 micro, small, and medium enterprises (MSMEs) along with several large- and medium-scale industries. Special status for the region has been a longstanding demand of industry bodies. According to them, the hub has been a victim of neglect from officials and has been writ with problems, including pothole-ridden roads, ineffective garbage collection, water and drainage issues, dysfunctional street lights, and law and order issues. Even as the KIADB notified 17 industrial areas across the State as special investment regions in April this year, Peenya did not make it to the list. 'We had been raising this demand even before the ELCITA came into being. It was kept pending for decades for various reasons. As a result, industries in the Peenya area faced severe infrastructure problems,' said M.G. Rajagopal, president, KASSIA. According to him, the corporation showed no interest in the maintenance of the region due to the minimal presence of the public in the region.
