Revolutionary Karnataka Agriculture Policy 2011
In a revolutionary policy to promote Agriculture & Agro Industry GoK has defined Agro Industries as ‘Agriculture’ thus making it easy for Qualified Farmers to set up their own agro industries on confessional terms applicable to Agriculture and removed restrictions on marketing all Agro Produce.
All other states may follow this Agriculture Policy of Karnataka.
Government Notification of March05, 2011 in the name of Governor of Karnataka is also clipped in this message.
-------------
4. Approval for the following items and to issue of directions to various
departments to take action wherever necessary to implement Integrated
Kamataka Agri Business Development Policy 2011:-
(a) Revenue Department shall take necessary action to amend Kamataka Stamp Act 1957 and Kamataka Registration Rules 1965 in accordance with para 19.1. (a) of the Draft Agri Business Development Policy. .
(b) Revenue Department shall take necessary action to make amendments to the Kamataka Land Revenue Act 1964 and Kamataka Land Reforms Act 1961 to include agri based industries and post harvest operations under the definition of "Agriculture".
----------------
Ravinder Singh
Inventor, Engineer, Consultant & Farmer
November10, 2011
http://www.karnataka.gov.in/Documents/Integrated-AgriBusiness2-RN-8pm.pdf
21 Investment in agro based industries and agri infrastructure
21.1 The Karnataka Industrial Policy 2009-14 classifies taluks of the State into four zones depending on backwardness of the taluks and also based on broad guidelines of Dr. D M Nanjundappa Committee Report. However to give impetus to agriculture and allied sector, the policy provides the following incentives across the state until further notice.
21.1.1 Exemption from Stamp Duty for MSME, Large and Mega agro based industries and agri infrastructure:
Stamp duty to be paid in respect of
a. loan agreements, credit deeds, mortgage and hypothecation deeds executed for availing term loans from State Govt. and / or State Financial Corporation, Industrial Investment Development Corporation, National Level Financial Institutions, Commercial Banks, RRBs, Co-operative Banks, KVIB / KVIC, Karnataka State SC/ST Development Corporation, Karnataka State Minority Development Corporation and other institutions which may be notified by the Government from time to time for the initial period of five years only and
b. for lease deeds, lease-cum-sale and absolute sale deeds executed by industrial Enterprises in respect of industrial plots, sheds, industrial tenements, by KIADB, KSSIDC, KSIIDC, industrial estates shall be exempted to an extent of 50%.
21.1.2 Concessional Registration Charges for MSME, Large and Mega agro based industries and agri infrastructure:
a. For all loan documents and sale deeds as specified in (ii) above, the registration charges shall be at a concessional rate of Rs.1 per Rs.1000.
b. The exemption of stamp duty and concessional registration charges are also applicable to lands purchased under Section 109 of the KLR Act and also for direct purchase of industrially converted lands for the projects approved by SHLCC / SLSWCC / DLSWCC. This incentive will also be applicable for the land transferred by KIADB to land owners as compensation for the acquired land.
c. The exemption of stamp duty and concessional registration charges are also available for registration of final sale deed in respect of lands, sheds, plots, industrial tenements after the expiry of lease period at the rate as specified in the Industrial Policy which was in vogue at the time of execution of lease-cum-sale deed.
21.1.3 Exemption from Entry Tax for MSME, Large and Mega agro based industries and agri infrastructure:
a. 100% exemption from payment of ET on ‘Plant and Machinery and Capital Goods’ for an initial period of 3 years from the date of commencement of project
implementation shall be provided. For this purpose, the term ‘Plant & Machinery and Capital Goods’ also includes Plant and Machinery, equipment etc. including
machineries for captive generation of Electricity, Processing and 100 % exemption from payment of ET on raw materials, inputs, component parts & consumables (excluding petroleum products) for a period of 3 years from the date of commencement of commercial production.
21.1.4 Incentives for Export Oriented MSME, Large and Mega agro based industries:
a. For 100 % EoU, 100 % exemption from payment of ET on ‘Plant & Machinery and Capital Goods’ for an initial period of 5 years from the date of commencement of project implementation shall be provided. For this purpose, the term ‘Plant & Machinery and Capital Goods’ also includes Plant and Machinery, equipment etc. including machineries for captive generation of Electricity, Processing and 100% exemption from payment of ET on raw materials, inputs, component parts & consumables (excluding petroleum products) for an initial period of 5 years from the date of commencement of commercial production.
21.1.5 Exemption of APMC cess / fees for MSME, Large and Mega agro based industries and agri infrastructure:
a. APMC cess/ fees in respect of procurement of agriculture produce as specified in the Schedule (inserted by Act No.17 of 1980 and effective from 30.06.1979) Sl.No. II, III, IV, VI, VII, IX and X to the Karnataka APM (Regulation & Development) Act, 1966, directly from farmers for processing by new and existing industries shall be reduced to 0.25% for a period of five years.
21.1.6 Subsidy for setting up ETPs by MSME, Large and Mega agro based industries and agri infrastructure:
a. One time capital subsidy up to 50% of the cost of effluent treatment plants (ETPs), subject to a ceiling of Rs. 100 lakhs by MSME, large and mega agro based industrial unit and Rs. 500 lakhs for common effluent treatment plant established as part of agri infrastructure facility
21.1.8 Exemption from electricity duty for agro based industries and agri-infrastructure
a. 100% exemption of electricity duty/tax for the initial period of 5 years, 4 years and 3 years in zone-1, zone-2 and zone-3 respectively.
21.1.9.3 Interest subsidy for agro based industries under micro enterprises category:
a. Interest subsidy at 5% on term loans shall be available for agro based industries under micro enterprises category. The interest subsidy is payable only on the interest actually paid to financial institutions and default in payment of either principal or interest shall not be eligible for the subsidy. The amount of interest subsidy will be effective rate of interest (after deducting interest subsidy) receivable by any institutions / under any Govt. of India scheme or 5% per annum whichever is less. The period of interest subsidy is 5 years.
PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA
Sub:- Integrated Karnataka Agri-Business
Development Policy 2011
. GOVERNMENT ORDER NO.AHD 172 AFT 2010, BANGALORE,
DATED 5TH MARCH 2011.
PREAMBLE:-
Growth in agriculture is almost stagnated. The production of food grains for the last 3 years has been as follows: 2007-08 - 120.49 lakh tonnes, 2008-09 - 112.75 lakh tonnes and 2009-10 -109.55 lakh tonnes. In order to give an impetus to growth in agriculture, it has to be sustainable and remunerative to the farming communities. Of late, various factors such as rise in the cost of inputs, labour, cost of living, high prices of other commodities etc., have made agriculture less attractive. It requires a radical change from supply driven markets to demand driven production and market. This requires substantial changes in terms of technology, manpower, (RR) creation of infrastructure such as agri hubs, markets and other institutions, as well as policy support. Much emphasis is required for post harvest value addition and production of speciality products for niche markets. Supply chain management and cold chain management needs to be given special
attention. All this requires investment as well as policy support
which can create an enabling environment for effective Public Private Partnership which in turn attracts investments. The policy also aims at an integrated approach and co-ordination among various departments such as Agriculture, Horticulture, Industries, Animal Husbandry, Fisheries and Sericulture. Besides, several land and water based activities also need to be integrated. The policy also aims at developing a good institutional 1110delto support all these activities and convert the agri sector into an agri business sector. The policy suggests creation of Kamataka Agri Business Development Corporation under Kamataka State Agriculture Produce Processing and Export Corporation and strengthening it through enhancement of technical as well as managerial manpower. The policy
suggests. the shifting of another Corporation viz., Food Kamataka Limited to
Agri business Development Corporation. The key function of this corporation as well as key areas of investment are specified in the detailed note on the policy. The corporation will also establish a Technical Cell to carry on the transaction supporting the objectives of the corporation.
In the Budget speech of 2010-11, new Agri- Business Investment Fund has been mentioned and an amount of Rs.100 lakhs has been earmarked in the Budget of 20 10-11. This expenditure is debitable under the Head of Account 2401-00-800-1-62 (Plan).
The Additional Chief Secretary and Development Commissioner
conducted meetings under his Chairmanship and detailed discussions
were held on f2.8.2010 and on 13.12.2010. In this connection, Hon'ble
Chief Minister of Karnataka has suggested to hold Global Agri-Business
Investors Meet (GABIM) for attracting investment to Agri Sector. To
attract foreign investment from investors of other countries, it has been
decided to organise road shows etc., in this regard. Kamataka Agricultural
Produce, Processing and Export Corporation (KAPPEC) Organisation has
been made as Nodal Agency to implement this policy. Further in the
meeting held with Chief Secretary on 20.12.2010, it was deliberated that the
Policy be announced in January 2011.
The following decisions were taken in the meeting held on 13.12.2010
under. the Chairmanship of Additional Chief Secretary and Development
Commissioner:
Since a separate corporation upgrading KAPPEC into
Kamataka Agri Business Development Corporation is on the
cards, there was some discussion on whether the agri business
proposals should be routed through the same or through
Kamataka Udyog Mitra. It was decided that Kamataka Udyoga
Mitra will continue to be the Single Window Agency. However,
the Kamataka Agri Business Development Corporation
representative will be there in the Kamataka Udyog Mitra to
process all the proposals and facilitate clearances for Agri
investment. The organisation like FKCCI, BCIC (Agri
Division) had raised the issue that they cannot go to different
agencies for clearances for which it was felt that Kamataka
Agri Business Development Corporation will be the Nodal
Agency for facilitating all agri business ventures.
-
Presently Food Karnataka Limited is administering the
food parks in KSIIDC. It was agreed to transfer Food Kamataka
Limited from KSIIDC to Kamataka Agri Business
Development Corporation but continue to remain as a separate
entity.
In this context, it becomes imperative to bring Gut a well thought
policy for Agri Business Development. The policy was posted on the
Website in PDF format seeking feed back fromvarious agencies to finalise
the same. As the Cabinet has already accorded approval to appoint
Transaction Advisers and Knowledge Partner to conduct Global Agri
Business Investors Meet-20ll and also make KAPPEC to work under the
Department. It :yas also decided to establish Technical Cell in Agriculture
Secretariat to coordinate the implementation of the policy in the Government
Order No.AHD 20 AMS 2010, dated 25.1.2011. The opinions/observations
received from Finance, Planning, Horticulture, Commerce and Industries,
Cooperation, Animal Husbandry and Fisheries, and Revenue Departments
are taken into consideration.
In the light of the above, a decision has been taken by the Government
to formulate and adopt the Integrated Kamataka Agri Business Development
Policy 2011.
Hence, the following order.
ORDER
1. In the circumstances explained in the preamble, Government is
pleased to announce the Integrated Kamataka Agri Business Development
Policy 2011which is appended at Annexure-I. shall come into force with
effect from 22.02.2011.
2. Approval is given to create Karnataka Agri Business Development
Corporation and to function as a Special Purpose Vehicle to implement the
Integrated Karnataka Agri Business Development Policy 2011 under the
control of the Kamataka Agricultural produce, processing and Export
Corporation(KAPPEC), and KAPPEC shall continue to remain as separate
entity.
3. Approval is given to transfer the Food Kamataka Limited to
Kamataka Agricultural produce, processing and Export
Corporation(KAPPEC) from the Kamataka State Industrial Investment
Development Corporation (KSIIDC) to function as separate entity and as.
Special Purpose Vehicle.
4. Approval for the following items and to issue of directions to various
departments to take action wherever necessary to implement Integrated
Kamataka Agri Business Development Policy 2011:-
(a) Revenue Department shall take necessary action to amend
Kamataka Stamp Act 1957 and Kamataka Registration
Rules 1965 in accordance with para 19.1. (a) of the Draft
Agri Business Development Policy.
(b) Revenue Department shall take necessary action to make
amendments to the Kamataka Land Revenue Act 1964 and
Kamataka Land Reforms Act 1961 to include agri based
industries and post harvest operations under the definition of
"Agriculture".
(c) For Para 19.1(c), while there is an existing provision for
facilitation for consolidation of holdings in chapter 7 of
Kamataka Land Reforms Act 1961, it is recommended that
Banks and financial institutions shall be advised to finance
a group of holdings for efficient farm operations.
(d)With regard to Para 19.2.1(a), it is recommended to waive
off APMC market fee for goods transacted outside the
APMC market yards and in newly developed private
terminal markets or markets developed under PPP model.
Necessary amendments shall be made by the Cooperation
Department to the KAPM (R&D) Act.
(e) Cooperation Department may be directed to take action to
bring down the deposit needed for direct purchase from
Rs.50 lakhs to Rs.5 lakhs as suggested in para 19.2.1(b) of
the Draft Agribusiness Development Policy.
(f) Cooperation Department may directed to take necessary
action to remove restrictions to start private markets within a
radius of 25 kms from Bangalore to facilitate organized
retail to trade grains, pulses and spices, as brought out in
para 19.2.l(c) of the Draft Agribusiness Development
Policy.
(g) Cooperation Department may be directed to make necessary
amendments to KAPM (R&D) Act to provide exemption
from market fee for processing and exports related activities
for agribusiness and agri infrastructure sector wherever
direct purchase is made from the farmers and outside APMC
markets, as brought out in paras 19.2.1(d) and 21.1.5(a) of
the draft agribusiness development policy.
(h)Cooperation and Revenue departments shall be directed to
take necessary action to bring about the amendments in the
relevant Acts to classify agricultural produce market land as
land for agricultural services sector, as recommended in para
19.2.1(e) of the draft Agribusiness.
(i) Cooperation Department shall be directed to make necessary
amendment to the KAPM (R&D) Act to consider private
markets also as procurement centers for minimum support -
price and other similar operations as brought out in para
19.2.1(f) of the draft agribusiness development policy.
G) Commerce & Industries Department shall be directed to give
preferential allotment to the agribusiness activity in the land
banks and infrastructure facilities in industrial parks, SEZs
etc. as recommended in para 20.1 of the draft agribusiness
development policy.
(k)Revenue Department shall be directed to issue necessary
instructions to implement para 20.3 of the draft agribusiness
development policy.
(1)Revenue Department shall be directed to make necessary
amendments to section 107 of the Kamataka Land Reforms
Act 1961 for promoting agro based industries and agriinfrastructure
entities to hold private agriculture land on long term lease for agribusiness activities, as proposed in para 20.5 of the draft agribusiness development policy.
(m) Paras 21.1, 21.1.2(a), 21.1.2(b), 21.1.2(c),
21.1.7(a),21.1.8(a) 21.1.9.1(a) 21.1.9.2(a), 21.1.9.2(b),
21.1.9.3(a), 21.1.9.4(a) (b) (d) (e) (f) & (g) are all pertaining
to provisions that are covered under the Industrial Policy
2009-14 and shall be approved for implementation in the
draft Karnataka Agri Business Development Policy also.
However, the zonal restrictions provided in the Industrial
(n)Policy 2009-14 for all these paras shall be removed while
implementing the same for Agri Business Development
Policy.
(0)For paras 21.1.1(a), 21.1.1(b) and 21.1.2 ( c), wherein
exemption from Stamp Duty for MSME, Large and Mega
Agro Based Industries and Agri Infrastructure are
concerned, the provisions in the Industrial Policy shall be
agreed to while removing the zonal restrictions placed on the
Zoq~s 1, 2 & 3. The zonal restrictions for Zone 4 may
continue.
(p) Under para 21.1.3(a) and 21.1.4(a), providing for exemption
from Entry Tax for MSME, Large and Mega Agro Based
Industries and Agri Infrastructure and the incentives for the
export oriented Agro Based Industries, the concessions
provided by the Industrial Policy 2009-14 may apply. While
the Industrial Policy -2009-14 provides for exemptions and
incentives for only 3 years, the same shall be provided for S
years for Agro Based Industries.
(q) Subsidy upto 50% with a ceiling ofRs. 5 crores for common
effluent plants for Agro Based Industries and Agri
infrastructure. While the Industrial Policy 2009-14 provides
for zonal restrictions and a cap of Rs.100 lakhs in 3 zones
and Rs.50 lakhs in zone 4, the Agri Business Development
Policy shall provide a cap of Rs.500 lakhs without any zonal
restrictions.
(r) Para 21.1.9.4(c) of the draft Agri Business Development
Policy provides for financial assistance upto 50% of the
project cost subject to a ceiling of Rs.5 lakhs to encourage
micro, tiny and small units with certification from
recognized standards. While this is not provided in the
Industrial Policy, it is recommended to provide this for Agro
Based and Agri Infrastructure Industries.
(s) Para 21.1.10(a) provides for reimbursement of 50% of the
cost of preparation of the project report with a ceiling of
Rs.5 lakhs. This shall be approved. To encourage Research
and Development activities and set up centres of Excellence,
support from the Government shall be provided upto 50% as
recommended in paras 21.1.10 (b) and 21.1.10 (c) of the draft
Agri Business Development Policy.
This order issued with the concurrence of Finance Department Note
No.FDI 150 Exp.4/2010, dated 29.10.2010, 11.1.2011 & FD 150IExpA12011,dated 14.2.2011, Co-operation Department letter No.;;l~
267 wOe:5ry~ 2010, Dated 18.12.2010, Revenue Department Note dated
17.2.2011, Commerce & Industries Department Note dated 31.12.2010,
Horticulture Department Note dated 28.9.2010, Animal Husbandry and
Fisheries Department Note dated 28.9.2010
By order and in the name of
Governor of Karnataka,
(N.C.MUNIYAPPA) ,
Principal Secretary to Government,
Agriculture Department.
In a revolutionary policy to promote Agriculture & Agro Industry GoK has defined Agro Industries as ‘Agriculture’ thus making it easy for Qualified Farmers to set up their own agro industries on confessional terms applicable to Agriculture and removed restrictions on marketing all Agro Produce.
All other states may follow this Agriculture Policy of Karnataka.
Government Notification of March05, 2011 in the name of Governor of Karnataka is also clipped in this message.
-------------
4. Approval for the following items and to issue of directions to various
departments to take action wherever necessary to implement Integrated
Kamataka Agri Business Development Policy 2011:-
(a) Revenue Department shall take necessary action to amend Kamataka Stamp Act 1957 and Kamataka Registration Rules 1965 in accordance with para 19.1. (a) of the Draft Agri Business Development Policy. .
(b) Revenue Department shall take necessary action to make amendments to the Kamataka Land Revenue Act 1964 and Kamataka Land Reforms Act 1961 to include agri based industries and post harvest operations under the definition of "Agriculture".
----------------
Ravinder Singh
Inventor, Engineer, Consultant & Farmer
November10, 2011
http://www.karnataka.gov.in/Documents/Integrated-AgriBusiness2-RN-8pm.pdf
21 Investment in agro based industries and agri infrastructure
21.1 The Karnataka Industrial Policy 2009-14 classifies taluks of the State into four zones depending on backwardness of the taluks and also based on broad guidelines of Dr. D M Nanjundappa Committee Report. However to give impetus to agriculture and allied sector, the policy provides the following incentives across the state until further notice.
21.1.1 Exemption from Stamp Duty for MSME, Large and Mega agro based industries and agri infrastructure:
Stamp duty to be paid in respect of
a. loan agreements, credit deeds, mortgage and hypothecation deeds executed for availing term loans from State Govt. and / or State Financial Corporation, Industrial Investment Development Corporation, National Level Financial Institutions, Commercial Banks, RRBs, Co-operative Banks, KVIB / KVIC, Karnataka State SC/ST Development Corporation, Karnataka State Minority Development Corporation and other institutions which may be notified by the Government from time to time for the initial period of five years only and
b. for lease deeds, lease-cum-sale and absolute sale deeds executed by industrial Enterprises in respect of industrial plots, sheds, industrial tenements, by KIADB, KSSIDC, KSIIDC, industrial estates shall be exempted to an extent of 50%.
21.1.2 Concessional Registration Charges for MSME, Large and Mega agro based industries and agri infrastructure:
a. For all loan documents and sale deeds as specified in (ii) above, the registration charges shall be at a concessional rate of Rs.1 per Rs.1000.
b. The exemption of stamp duty and concessional registration charges are also applicable to lands purchased under Section 109 of the KLR Act and also for direct purchase of industrially converted lands for the projects approved by SHLCC / SLSWCC / DLSWCC. This incentive will also be applicable for the land transferred by KIADB to land owners as compensation for the acquired land.
c. The exemption of stamp duty and concessional registration charges are also available for registration of final sale deed in respect of lands, sheds, plots, industrial tenements after the expiry of lease period at the rate as specified in the Industrial Policy which was in vogue at the time of execution of lease-cum-sale deed.
21.1.3 Exemption from Entry Tax for MSME, Large and Mega agro based industries and agri infrastructure:
a. 100% exemption from payment of ET on ‘Plant and Machinery and Capital Goods’ for an initial period of 3 years from the date of commencement of project
implementation shall be provided. For this purpose, the term ‘Plant & Machinery and Capital Goods’ also includes Plant and Machinery, equipment etc. including
machineries for captive generation of Electricity, Processing and 100 % exemption from payment of ET on raw materials, inputs, component parts & consumables (excluding petroleum products) for a period of 3 years from the date of commencement of commercial production.
21.1.4 Incentives for Export Oriented MSME, Large and Mega agro based industries:
a. For 100 % EoU, 100 % exemption from payment of ET on ‘Plant & Machinery and Capital Goods’ for an initial period of 5 years from the date of commencement of project implementation shall be provided. For this purpose, the term ‘Plant & Machinery and Capital Goods’ also includes Plant and Machinery, equipment etc. including machineries for captive generation of Electricity, Processing and 100% exemption from payment of ET on raw materials, inputs, component parts & consumables (excluding petroleum products) for an initial period of 5 years from the date of commencement of commercial production.
21.1.5 Exemption of APMC cess / fees for MSME, Large and Mega agro based industries and agri infrastructure:
a. APMC cess/ fees in respect of procurement of agriculture produce as specified in the Schedule (inserted by Act No.17 of 1980 and effective from 30.06.1979) Sl.No. II, III, IV, VI, VII, IX and X to the Karnataka APM (Regulation & Development) Act, 1966, directly from farmers for processing by new and existing industries shall be reduced to 0.25% for a period of five years.
21.1.6 Subsidy for setting up ETPs by MSME, Large and Mega agro based industries and agri infrastructure:
a. One time capital subsidy up to 50% of the cost of effluent treatment plants (ETPs), subject to a ceiling of Rs. 100 lakhs by MSME, large and mega agro based industrial unit and Rs. 500 lakhs for common effluent treatment plant established as part of agri infrastructure facility
21.1.8 Exemption from electricity duty for agro based industries and agri-infrastructure
a. 100% exemption of electricity duty/tax for the initial period of 5 years, 4 years and 3 years in zone-1, zone-2 and zone-3 respectively.
21.1.9.3 Interest subsidy for agro based industries under micro enterprises category:
a. Interest subsidy at 5% on term loans shall be available for agro based industries under micro enterprises category. The interest subsidy is payable only on the interest actually paid to financial institutions and default in payment of either principal or interest shall not be eligible for the subsidy. The amount of interest subsidy will be effective rate of interest (after deducting interest subsidy) receivable by any institutions / under any Govt. of India scheme or 5% per annum whichever is less. The period of interest subsidy is 5 years.
PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA
Sub:- Integrated Karnataka Agri-Business
Development Policy 2011
. GOVERNMENT ORDER NO.AHD 172 AFT 2010, BANGALORE,
DATED 5TH MARCH 2011.
PREAMBLE:-
Growth in agriculture is almost stagnated. The production of food grains for the last 3 years has been as follows: 2007-08 - 120.49 lakh tonnes, 2008-09 - 112.75 lakh tonnes and 2009-10 -109.55 lakh tonnes. In order to give an impetus to growth in agriculture, it has to be sustainable and remunerative to the farming communities. Of late, various factors such as rise in the cost of inputs, labour, cost of living, high prices of other commodities etc., have made agriculture less attractive. It requires a radical change from supply driven markets to demand driven production and market. This requires substantial changes in terms of technology, manpower, (RR) creation of infrastructure such as agri hubs, markets and other institutions, as well as policy support. Much emphasis is required for post harvest value addition and production of speciality products for niche markets. Supply chain management and cold chain management needs to be given special
attention. All this requires investment as well as policy support
which can create an enabling environment for effective Public Private Partnership which in turn attracts investments. The policy also aims at an integrated approach and co-ordination among various departments such as Agriculture, Horticulture, Industries, Animal Husbandry, Fisheries and Sericulture. Besides, several land and water based activities also need to be integrated. The policy also aims at developing a good institutional 1110delto support all these activities and convert the agri sector into an agri business sector. The policy suggests creation of Kamataka Agri Business Development Corporation under Kamataka State Agriculture Produce Processing and Export Corporation and strengthening it through enhancement of technical as well as managerial manpower. The policy
suggests. the shifting of another Corporation viz., Food Kamataka Limited to
Agri business Development Corporation. The key function of this corporation as well as key areas of investment are specified in the detailed note on the policy. The corporation will also establish a Technical Cell to carry on the transaction supporting the objectives of the corporation.
In the Budget speech of 2010-11, new Agri- Business Investment Fund has been mentioned and an amount of Rs.100 lakhs has been earmarked in the Budget of 20 10-11. This expenditure is debitable under the Head of Account 2401-00-800-1-62 (Plan).
The Additional Chief Secretary and Development Commissioner
conducted meetings under his Chairmanship and detailed discussions
were held on f2.8.2010 and on 13.12.2010. In this connection, Hon'ble
Chief Minister of Karnataka has suggested to hold Global Agri-Business
Investors Meet (GABIM) for attracting investment to Agri Sector. To
attract foreign investment from investors of other countries, it has been
decided to organise road shows etc., in this regard. Kamataka Agricultural
Produce, Processing and Export Corporation (KAPPEC) Organisation has
been made as Nodal Agency to implement this policy. Further in the
meeting held with Chief Secretary on 20.12.2010, it was deliberated that the
Policy be announced in January 2011.
The following decisions were taken in the meeting held on 13.12.2010
under. the Chairmanship of Additional Chief Secretary and Development
Commissioner:
Since a separate corporation upgrading KAPPEC into
Kamataka Agri Business Development Corporation is on the
cards, there was some discussion on whether the agri business
proposals should be routed through the same or through
Kamataka Udyog Mitra. It was decided that Kamataka Udyoga
Mitra will continue to be the Single Window Agency. However,
the Kamataka Agri Business Development Corporation
representative will be there in the Kamataka Udyog Mitra to
process all the proposals and facilitate clearances for Agri
investment. The organisation like FKCCI, BCIC (Agri
Division) had raised the issue that they cannot go to different
agencies for clearances for which it was felt that Kamataka
Agri Business Development Corporation will be the Nodal
Agency for facilitating all agri business ventures.
-
Presently Food Karnataka Limited is administering the
food parks in KSIIDC. It was agreed to transfer Food Kamataka
Limited from KSIIDC to Kamataka Agri Business
Development Corporation but continue to remain as a separate
entity.
In this context, it becomes imperative to bring Gut a well thought
policy for Agri Business Development. The policy was posted on the
Website in PDF format seeking feed back fromvarious agencies to finalise
the same. As the Cabinet has already accorded approval to appoint
Transaction Advisers and Knowledge Partner to conduct Global Agri
Business Investors Meet-20ll and also make KAPPEC to work under the
Department. It :yas also decided to establish Technical Cell in Agriculture
Secretariat to coordinate the implementation of the policy in the Government
Order No.AHD 20 AMS 2010, dated 25.1.2011. The opinions/observations
received from Finance, Planning, Horticulture, Commerce and Industries,
Cooperation, Animal Husbandry and Fisheries, and Revenue Departments
are taken into consideration.
In the light of the above, a decision has been taken by the Government
to formulate and adopt the Integrated Kamataka Agri Business Development
Policy 2011.
Hence, the following order.
ORDER
1. In the circumstances explained in the preamble, Government is
pleased to announce the Integrated Kamataka Agri Business Development
Policy 2011which is appended at Annexure-I. shall come into force with
effect from 22.02.2011.
2. Approval is given to create Karnataka Agri Business Development
Corporation and to function as a Special Purpose Vehicle to implement the
Integrated Karnataka Agri Business Development Policy 2011 under the
control of the Kamataka Agricultural produce, processing and Export
Corporation(KAPPEC), and KAPPEC shall continue to remain as separate
entity.
3. Approval is given to transfer the Food Kamataka Limited to
Kamataka Agricultural produce, processing and Export
Corporation(KAPPEC) from the Kamataka State Industrial Investment
Development Corporation (KSIIDC) to function as separate entity and as.
Special Purpose Vehicle.
4. Approval for the following items and to issue of directions to various
departments to take action wherever necessary to implement Integrated
Kamataka Agri Business Development Policy 2011:-
(a) Revenue Department shall take necessary action to amend
Kamataka Stamp Act 1957 and Kamataka Registration
Rules 1965 in accordance with para 19.1. (a) of the Draft
Agri Business Development Policy.
(b) Revenue Department shall take necessary action to make
amendments to the Kamataka Land Revenue Act 1964 and
Kamataka Land Reforms Act 1961 to include agri based
industries and post harvest operations under the definition of
"Agriculture".
(c) For Para 19.1(c), while there is an existing provision for
facilitation for consolidation of holdings in chapter 7 of
Kamataka Land Reforms Act 1961, it is recommended that
Banks and financial institutions shall be advised to finance
a group of holdings for efficient farm operations.
(d)With regard to Para 19.2.1(a), it is recommended to waive
off APMC market fee for goods transacted outside the
APMC market yards and in newly developed private
terminal markets or markets developed under PPP model.
Necessary amendments shall be made by the Cooperation
Department to the KAPM (R&D) Act.
(e) Cooperation Department may be directed to take action to
bring down the deposit needed for direct purchase from
Rs.50 lakhs to Rs.5 lakhs as suggested in para 19.2.1(b) of
the Draft Agribusiness Development Policy.
(f) Cooperation Department may directed to take necessary
action to remove restrictions to start private markets within a
radius of 25 kms from Bangalore to facilitate organized
retail to trade grains, pulses and spices, as brought out in
para 19.2.l(c) of the Draft Agribusiness Development
Policy.
(g) Cooperation Department may be directed to make necessary
amendments to KAPM (R&D) Act to provide exemption
from market fee for processing and exports related activities
for agribusiness and agri infrastructure sector wherever
direct purchase is made from the farmers and outside APMC
markets, as brought out in paras 19.2.1(d) and 21.1.5(a) of
the draft agribusiness development policy.
(h)Cooperation and Revenue departments shall be directed to
take necessary action to bring about the amendments in the
relevant Acts to classify agricultural produce market land as
land for agricultural services sector, as recommended in para
19.2.1(e) of the draft Agribusiness.
(i) Cooperation Department shall be directed to make necessary
amendment to the KAPM (R&D) Act to consider private
markets also as procurement centers for minimum support -
price and other similar operations as brought out in para
19.2.1(f) of the draft agribusiness development policy.
G) Commerce & Industries Department shall be directed to give
preferential allotment to the agribusiness activity in the land
banks and infrastructure facilities in industrial parks, SEZs
etc. as recommended in para 20.1 of the draft agribusiness
development policy.
(k)Revenue Department shall be directed to issue necessary
instructions to implement para 20.3 of the draft agribusiness
development policy.
(1)Revenue Department shall be directed to make necessary
amendments to section 107 of the Kamataka Land Reforms
Act 1961 for promoting agro based industries and agriinfrastructure
entities to hold private agriculture land on long term lease for agribusiness activities, as proposed in para 20.5 of the draft agribusiness development policy.
(m) Paras 21.1, 21.1.2(a), 21.1.2(b), 21.1.2(c),
21.1.7(a),21.1.8(a) 21.1.9.1(a) 21.1.9.2(a), 21.1.9.2(b),
21.1.9.3(a), 21.1.9.4(a) (b) (d) (e) (f) & (g) are all pertaining
to provisions that are covered under the Industrial Policy
2009-14 and shall be approved for implementation in the
draft Karnataka Agri Business Development Policy also.
However, the zonal restrictions provided in the Industrial
(n)Policy 2009-14 for all these paras shall be removed while
implementing the same for Agri Business Development
Policy.
(0)For paras 21.1.1(a), 21.1.1(b) and 21.1.2 ( c), wherein
exemption from Stamp Duty for MSME, Large and Mega
Agro Based Industries and Agri Infrastructure are
concerned, the provisions in the Industrial Policy shall be
agreed to while removing the zonal restrictions placed on the
Zoq~s 1, 2 & 3. The zonal restrictions for Zone 4 may
continue.
(p) Under para 21.1.3(a) and 21.1.4(a), providing for exemption
from Entry Tax for MSME, Large and Mega Agro Based
Industries and Agri Infrastructure and the incentives for the
export oriented Agro Based Industries, the concessions
provided by the Industrial Policy 2009-14 may apply. While
the Industrial Policy -2009-14 provides for exemptions and
incentives for only 3 years, the same shall be provided for S
years for Agro Based Industries.
(q) Subsidy upto 50% with a ceiling ofRs. 5 crores for common
effluent plants for Agro Based Industries and Agri
infrastructure. While the Industrial Policy 2009-14 provides
for zonal restrictions and a cap of Rs.100 lakhs in 3 zones
and Rs.50 lakhs in zone 4, the Agri Business Development
Policy shall provide a cap of Rs.500 lakhs without any zonal
restrictions.
(r) Para 21.1.9.4(c) of the draft Agri Business Development
Policy provides for financial assistance upto 50% of the
project cost subject to a ceiling of Rs.5 lakhs to encourage
micro, tiny and small units with certification from
recognized standards. While this is not provided in the
Industrial Policy, it is recommended to provide this for Agro
Based and Agri Infrastructure Industries.
(s) Para 21.1.10(a) provides for reimbursement of 50% of the
cost of preparation of the project report with a ceiling of
Rs.5 lakhs. This shall be approved. To encourage Research
and Development activities and set up centres of Excellence,
support from the Government shall be provided upto 50% as
recommended in paras 21.1.10 (b) and 21.1.10 (c) of the draft
Agri Business Development Policy.
This order issued with the concurrence of Finance Department Note
No.FDI 150 Exp.4/2010, dated 29.10.2010, 11.1.2011 & FD 150IExpA12011,dated 14.2.2011, Co-operation Department letter No.;;l~
267 wOe:5ry~ 2010, Dated 18.12.2010, Revenue Department Note dated
17.2.2011, Commerce & Industries Department Note dated 31.12.2010,
Horticulture Department Note dated 28.9.2010, Animal Husbandry and
Fisheries Department Note dated 28.9.2010
By order and in the name of
Governor of Karnataka,
(N.C.MUNIYAPPA) ,
Principal Secretary to Government,
Agriculture Department.
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