Automobile Industries Policy

Automobile sector have a great economic significance. Promoting and encouraging them is crucial for the industrial progress of any state. To attract investments into this sector, government of Karnataka has formulated an exclusive policy for this sector which is as under:

  • Specified auto components manufacturing units (set up after 1.1.200 and before 31-3-2001) as indicated in Annuxure-I will be exempt from payment of entry tax for a period of 5 years in zone I (developed areas), 6 years in zone II (developing areas), 7 years in zone III (growth centers). (definition of zone I, II & III is provided in the foot note).
  • KIADB will establish 2 auto parks in Bidadi Industrial Area and in Dharwad growth center with all necessary infrastructuaral facilities including effluent treatment and disposal facilities and other service and environmental infrastructure. Government will provide budgetary support to KIADB towards margin money so that these Auto parks are established within a period of 2 years.
  • Government will encourage and assist establishment of specialized training institutes for the automobile sector through the active association of interested automobile industries. These institutes will be set up in Bidadi Industrial area and Dharwad Growth center. The Institute will be managed by the participating automobile industries and will train skilled category of auto workers, in specified skill areas such as painting , welding, auto mechanical, etc.
  • For speedy clearances and approvals for new investment proposals, a joint government Industry, "Auto Guidance Cell" will be set up. The officers under this will be delegated with appropriate powers under the relevant statutory acts and rules to enable the industries in the auto-park to get speedy clearance.
  • To avoid multiplicity of approvals by various agencies and to ensure proper maintenance of the auto- parks, government will declare these auto parks as Industrial townships after they are fully established under the provisions of 74th amendment of the constitution.