Peenya Industrial Area notified as special investment region; industry bodies laud move

The Karnataka government has issued a notification declaring 1,461.46 acres of the Peenya Industrial Area as the Peenya Special Investment Region. Phases 1, 2, 3, and 4 of the industrial area have been brought under the region.

Under the new scheme of things, 70% of the property tax collected from the region will be utilised for infrastructure development and maintenance in the region. The remaining 30% will be shared with the local body.

The Karnataka Industrial Areas Development Board (KIADB) will be the regional development authority for the industrial township.

“The Peenya Special Investment Region shall be deemed to be an industrial township and the Government of Karnataka hereby declares that the Karnataka Industrial Areas Development Board (regional development authority) be the industrial township authority,” read the notification.

Special benefits

One of the most important features of a special investment region is that the local authorities will have no jurisdiction over it. As per the Karnataka Special Investment Region Act, 2022, the township will be managed by the regional development authority, which will be responsible for its development, operation, regulation, management, and infrastructure development.

The Act was introduced to enhance the State’s position as a global manufacturing hub with improved management of large industrial clusters in the State.

According to industry bodies, the establishment of the special investment regions will create a more favourable environment for businesses by avoiding bureaucratic clutter, attracting more investments, facilitating better infrastructure amenities, and creating more jobs.

Praise for the move

The notification makes Peenya Industrial Area the 18th special investment region in Karnataka. Industry bodies such as Karnataka Small Scale Industries Association (KASSIA) and Peenya Industries Association (PIA) have welcomed the notification and hoped that the industrial area would see a facelift in the coming days.

M.G. Rajagopal, president, KASSIA, said that declaring the industrial estate as a special investment region is an upgrade from its present plight and would help boost businesses in the region.

“We welcome the declaration and hope to see that the Peenya Industrial Estate is remodelled,” he said.

Shiva Kumar R., president of the PIA, thanked the Government of Karnataka, while noting that the expectation, however, had been for a Peenya Industrial Township Authority similar to the Electronics City Industrial Township Authority (ELCITA) — a demand raised as far back as 2002.

“Earlier, 80% of the industrial area would come under the Dasarahalli constituency and 20% under the R.R. Nagar constituency. For any grievances, we had to shuttle between both administrative offices. Now it has come under a single body,” he said.

‘Inadequate representation’

Some concerns, however, seem to remain unaddressed. One of them is the constitution of the regional development authority. The industry bodies criticised that the representation of the industrial fraternity in the 15-member committee is a miniscule two.

“More representation from the industrial fraternity will ensure better development of the industrial layout, as we know the region better. At least 50% of the committee members should be from the industrial fraternity,” said Mr. Rajagopal, noting that the industry bodies have requested the same to the Chief Minister.

Seconding it, Mr. Kumar remarked that a township authority would have given the industry fraternity more representation. He hoped that the government would consider modifying the committee to increase the number of industry representatives.

Neglected region

Peenya Industrial Area, established in the early 1970s, houses around 13,000 micro, small, and medium enterprises (MSMEs) along with several large- and medium-scale industries. Special status for the region has been a longstanding demand of industry bodies.

According to them, the hub has been a victim of neglect from officials and has been writ with problems, including pothole-ridden roads, ineffective garbage collection, water and drainage issues, dysfunctional street lights, and law and order issues.

Even as the KIADB notified 17 industrial areas across the State as special investment regions in April this year, Peenya did not make it to the list.

“We had been raising this demand even before the ELCITA came into being. It was kept pending for decades for various reasons. As a result, industries in the Peenya area faced severe infrastructure problems,” said M.G. Rajagopal, president, KASSIA.

According to him, the corporation showed no interest in the maintenance of the region due to the minimal presence of the public in the region.