BENGALURU: The state and its industries have suffered heavy losses because of the lockdown. But Large and Medium Scale Industries Minister Jagadish Shettar is confident that the New Industrial Policy 2020-2025 will achieve its goal of Rs 5 lakh crore in investments.

With inputs from the World Economic Forum at Davos last year, Shettar and his department have made changes in land, labour and industrial laws, despite criticism from the opposition and labour unions. In an interview with TNIE, Shettar called the reforms “inevitable”, given the present economic crisis.

What losses has the pandemic caused to industries?  

Losses run into lakhs of crores and it is difficult to estimate. Every business has been hit as the lockdown stopped exports, markets and production. But the government has helped industries to function. The Centre’s Atmanirbhar Bharat Scheme with PM Narendra Modi announcing loans of Rs 3 lakh crore for small-scale industries has helped.

With industrial activity resuming, what are the challenges?

Karnataka was the first state to open up industries. We addressed their concerns of paying electricity bills without any consumption, by waiving off minimum charges for MSMEs for two months and deferred payments for large and mega industries by three months. Manufacturing units dependent on local labour did not face the crunch, but the construction sector that needed skilled labourers suffered as workers went back home. But now, they are coming back.

Your government has issued ordinances to approve labour, land and industrial reforms. How do you respond to allegations that you are using the pandemic to undermine the Assembly?

PM Modi has repeatedly said ‘ease of doing business’ and ‘single-window clearance’ is the need of the hour. For this, we need reforms. The Industries Facilitation Act ensures that industries can be set up soon after high-level committees give approvals. If we wait till it comes to the Assembly, industries that want to set up units right away cannot do it. Since these are urgent reforms, ordinances were passed. Moreover, the House is not in session. Constitutionally, we have to take the Assembly’s approval, but this is a crisis. We are confident of convincing the opposition.

Is the government overlooking labour and environmental laws?

Under the Industries Facilitation Act, industries still have to obtain the NOC from the pollution control board, permissions under building and labour laws and get trade licences. But we give them three years to get the required clearances. Industries can take their units till the operation stage and get the approvals in the meantime.

Even the RSS-affiliated Mazdoor Sangh has opposed labour reforms.

We have removed restrictions giving more choice to workers and the management. Increasing working hours will increase the capacity of labour. The Centre is holding talks with labour unions and so is our labour minister. They hope to convince the labour leaders.

What is the progress on the land audit? 

I have ordered an audit of lands acquired through the Karnataka Industrial Areas Development Board since 1966. Most allottees have used the land for industry, but some have either kept it vacant or used only a part of it. We will cancel such allotments and re-allot the lands to industries. There is no deadline, but we hope to complete the audit in a month or two.