Karnataka government presents industry-friendly face

<div class="section1"><div class="Normal">BANGALORE: The new Karnataka government tried to present an industry-friendly face on Saturday by stating its intention to withdraw or reduce the tax on captive power generation imposed by the previous regime.<br /><br />Speaking on behalf of the Chief Minister at a meeting of the Confederation of Indian Industry''s Southern Regional Council, the state water resource and transport minister Mallikarjuna Kharge said that he "would review this situation (the tax) afresh for possible relief."<br /><br />Last year, the S M Krishna regime had announced a tax of 50 paise per unit of captive power generated by private companies, a move that did not go down well with industry at all.Industry already pays high rates for electricity as part of a tariff structure that helps the government to subsidise power supplied to farmers.<br /><br />Kharge also expressed the need to introduce second generation reforms at the earliest and said the government was examining innovative means for raising resources for infrastructure initiatives and for strengthening public-private partnership in implementing these projects.<br /><br />However, Kharge, who had made a <span style="" font-style:="" italic="">suo moto</span> statement on the tax on captive power generation, was non-committal on other issues raised by CII members at the meet. In response to a question on the high power tariffs, Kharge noted that Karnataka had been at the forefront of power reforms and cutting power subsidies. "But you know what happened in the elections. We lost in rural areas," he said, clearly indicating the policy had backfired.<br /><br />On labour reforms, he said the government was open to the review of certain labour laws, but made it clear that a balanced policy was required, one that would safeguard both labour and industry interest.<br /><br />Kharge also indicated that governmental decision-making could slow down on account of the fact that the government was being run by a coalition. "Whatever reforms we had promised will continue. But now two parties have come together to form the government, so we will have to go slow," he said. Kharge said there would be need for more discussions on issues.<br /><br />CII appeared on the whole to be quite happy with its first interaction with the new government. Speaking to reporters after the event, CII (Karnataka) chairman K K Swamy said Kharge''s message was encouraging and particularly appreciated the statements on the tax on power generation and the need to begin second generation reforms.<br /><br />And if he was disappointed with the chief minister''s absence at the meet, he certainly did not show it. "The CM is busy with the government formation process," Swamy said. </div> </div>