Date:28/11/2009 URL: http://www.thehindubusinessline.com/2009/11/28/stories/2009112851801700.htm

Back Farm land ceiling may be relaxed for food processing

Our Bureau

Bangalore, Nov. 27

Karnataka's Minister for Large and Medium Industries, Mr Murugesh Nirani, said here on Friday that the prevailing cap of 54 acres on conversion of agriculture land to non-agriculture purposes is likely to be removed in the case of food processing units.

Addressing a meet organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Konrad Adenauer Foundation (KAF) — titled ‘FICCI-KAF Joint Workshop on State-level reforms- Increasing Investments in Karnataka' — Mr Nirani said that the 4,000 MW Bijapur thermal plant of the National Thermal Power Corporation will be commissioned in three years.

The Nuclear Power Corporation had approved the expansion of the Kaiga nuclear plant, Mr Nirani said.

The Minister also said that attempts will be made to tailor concessions to new rather than existing industries.

Separate power grid

The Principal Secretary, Commerce and Industry, Mr V.P. Baligar, said on the sidelines of the meet that the State Government was in receipt of 200 mining applications, which would be screened.

The FICCI-KAF report on State-level reforms presented to the State Government “recommends setting up a separate power grid for industry, supply of peak power to farmers only during non-peak hours, strict adherence to the scheduled power cut timetable and tapping of hydel and nuclear power.”

It suggests that land should be made available to industries, “as the present industrial areas are getting saturated and land prices are rising at a fast clip”. The study urges the creation of land banks, besides making wasteland available to industry.