Karnataka to fast-track industry approvals; CM Siddaramaiah warns action against delays

Karnataka Chief Minister Siddaramaiah on October 24 directed officials to accelerate clearances for industrial projects and warned of strict action against those who fail to implement investment-related decisions on time.

Focus on faster clearances

Chairing a high-level meeting on investment facilitation at Vidhana Soudha, Siddaramaiah said Karnataka’s investor-friendly environment must be further strengthened and that no delay should be allowed in granting approvals 'for any reason.'

He instructed Chief Secretary Shalini Rajneesh to issue directions to all departments to ensure faster processing of applications and approvals. The government, he added, will bring necessary amendments to existing laws and regulations through the Cabinet to make the approval process more industry-friendly.

Cutting red tape and fixing accountability

The CM said the time limit for issuing various NOCs, including land-use conversion, should be reduced, and a detailed proposal should be submitted to this effect. Siddaramaiah said that approvals from the Karnataka State Pollution Control Board and the Fire Department are often delayed and directed that their processes be streamlined by revising relevant rules and fixing accountability.

“All departments must reschedule the approval timelines. Action will be taken against officers who fail to clear proposals within the stipulated time,” he said.

Karnataka approvals take 20-120 days, compared to 7-66 in other states

Speaking to reporters, Karnataka Minister for Large and Medium Scale Industries MB Patil said that following the cabinet’s decision, time limits will be set for each industrial approval, with strict action against officials who exceed them.

“The CM reviewed approval timelines in Telangana, Tamil Nadu, and Andhra Pradesh, covering land use change, electricity, water supply, tree felling/relocation, fire department clearance, industrial registration, boiler and lift licenses, and more. In these states, approvals take 7-66 days, whereas in Karnataka, some take 20-120 days. Strict measures have been ordered to address these delays,” Patil said.

“Investors cited bottlenecks mainly from the Pollution Control Board and Fire Department. To address this, 115 services from 20 departments have been integrated into a single-window portal developed by Microsoft. Another 29 services, including Stamps and Registration, Labour, Fire Service, BDA, Revenue, Drug Control, KIADB, and BMRDA, are pending integration,” he added.

A demonstration of the portal was arranged during the meeting. Patil said that Karnataka faces stiff competition from Gujarat, Telangana, Maharashtra, Andhra Pradesh, Odisha, and Uttar Pradesh. “For investors, time is money. Delays cost the state dearly. These hurdles will be removed immediately,” he said.

Infrastructure and green energy push

The Chief Minister also asked departments to work in coordination to ensure basic infrastructure - including roads, water, and power - for industries. He stressed that priority should be given to supplying power from non-conventional or green energy sources and called for a systematic plan to facilitate this.

Labour reforms and single-window clearances

On labour reforms, Siddaramaiah said the state will keep workers’ interests in mind while implementing the two major labour codes proposed by the Union Government and in any rescheduling of working hours.

He also expressed concern over delays in processing industrial applications under the single-window clearance system. “Currently, 29 services are outside the single-window mechanism. All such services should be brought under it to ensure unified disposal,” he said.

Rs 10.27 lakh crore in investment commitments

Officials informed the meeting that the Global Investors’ Meet held earlier this year attracted investment commitments worth Rs 10.27 lakh crore, of which 60 percent are already in the implementation stage. In addition, proposals worth more than Rs 1.5 lakh crore are at various stages of approval.

IT & BT Minister Priyank Kharge highlighted that Karnataka currently has 37 Special Economic Zones (SEZs), compared to Tamil Nadu’s 51, and urged officials to leverage the state’s favourable environment to attract more investments.

Siddaramaiah reiterated that increasing capital investment is essential for job creation and directed departments to ensure all approvals are granted within set timelines.