Bangalore, May 12: Karnataka government has decided to enact a legislation to establish Special Economic Zones (SEZs) in the state, minister for major and medium industries R V Deshpande said today. A bill to this effect was being prepared and expected to be introduced in the coming legislature session for consideration and passing, he told reporters here. Deshpande said during his meeting with commerce minister Arun Jaitley recently at New Delhi, the former suggested that the state enact a legislation to set up SEZs. Karnataka has also submitted a proposal to the Centre seeking approval for establishing coastal economic zones in the state to facilitate setting up of service industries.
He said the German-based automobile giant Volkswagon had evinced interest in setting up a manufacturing unit in the state.

The authorities from Volkswagon have visited Karnataka, Punjab, Andhra Pradesh and Tamil Nadu to explore the possibility of establishing its unit, he said.

Karnataka had offered to extend required facilities if the company preferred the state as a destination for investment, he said.

Deshpande said in the event of Volkswagon coming forward to set up the unit it would be investing about Rs 800 crore.

On the delay in implementing the Vat, he demanded the Centre to evolve a comprehensive policy while giving effect to such kind of reforms.

Bureau Report