MB Patil flags AI-led uncertainty in Karnataka’s IT sector; asks officials to fast-track industrial approvals

Karnataka industries minister MB Patil

• Karnataka cuts approval timelines to boost Ease of Doing Business
• 115 services integrated under single-window, 28 more prioritized
• State to build data centers with dedicated power lines

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While Karnataka has long been a frontrunner in the IT sector, rapid emergence of Artificial Intelligence (AI) has created new uncertainties, said Karnataka Minister for Large and Medium Industries MB Patil on February 26.

He said all departments, including KIADB, must ensure expeditious approvals for industrial projects. "Clearances for electricity connections, Fire Department NOCs and Pollution Control Board approvals must be issued promptly, and entrepreneurs should not face unnecessary delays" he said.

Reiterating state government’s commitment to strengthening Ease of Doing Business (EoDB) ecosystem, he directed officials to expedite amendments to streamline the remaining 28 services under single-window system.

Patil chaired a review meeting on Ease of Doing Business and Single Window Committees at Vidhana Soudha conference hall. Addressing the media, he said, “We face intense competition from neighbouring states. We have studied their policies and regulations and are determined to establish a system that is even more efficient and industry-friendly.”

He added that 115 services across 20 departments have already been integrated under the single-window system. The remaining 28 services have been prioritised for time-bound implementation. These include services related to the Revenue, Forest, Home, Environment, Primary Education, Fire Services and Energy departments.

“Our goal is to ensure that investors do not lose valuable time and are encouraged to invest in Karnataka. Cooperation from all departments is essential in this regard,” he said.

Reduced time limits

The minister said the time limit for issuing Fire Department NOCs has been reduced from 60 days to 21 days. The approval timeline for electricity connections has been cut from 25 days to 10 days.

Permission for lift and escalator operations has been reduced from 40 days to 20 days, while approval for new water connections has been brought down from 42 days to 30 days. The Labour Department will now issue industrial licences and boiler registrations within 14 days, down from 30 days. Necessary notifications have already been issued.

He said the amendments will soon be placed before the Cabinet and formalised through legislation on a fast-track basis.

The timelines for approvals at the State Pollution Control Board have also been significantly reduced. Permission for change of land use within Bengaluru city limits, which earlier took up to 120 days, will now be granted within 45 days.

Focus on data centres

Patil said 32 data centres are currently operating in the state, and ensuring uninterrupted power supply to them is critical. He stressed the need to develop dedicated data centre clusters and provide exclusive power lines. A ministerial-level meeting will soon be convened to identify suitable locations for new data centres and ensure the provision of essential infrastructure, including power connectivity, he added.