Govt needs to listen more to industry, make sure ease of doing biz happens: FKCCI prez

Chandra Prabhu | NT

Bengaluru: Improving Infrastructure in Industrial Development areas and augmenting the ease of doing business in Karnataka, figure among the demands put forth by Ramesh Chandra Lahoti, President of Federation of Karnataka Chambers of Commerce and Industry (FKCCI), in an exclusive interview with News Trail.

Here are excerpts.

NT: How do the trade prospects look like in Bengaluru, both in the present and in the future?

With the surge in population to 1.5 crore, the scope for trade has increased. There are a lot of opportunities, especially in the hospitality sector.

Trade in Bengaluru is on par with other metropolitan cities. It is a brighter future which awaits businesses with vigour and a unique identity.

NT: Amidst these opportunities, what are all the main challenges industries face in the state?

The suggestions presented by the Federation, though acknowledged by the government, are not being implemented. We also want government departments to work in tandem with associations.

That will be a win-win situation for both us and the government. Ease of doing business is also a headache.

It is necessary that government portals that give access to schemes should function without hassles. The idea on paper is attractive but its practicality is what matters.

Q: How are industries trying to deal with the water shortage in the city?

The situation is not that grim as perceived though the government no doubt is finding it difficult to supply water to the residents even as we speak.

With regard to industries, it’s a 50/50 situation with the government and tankers doing their best though the tankers have hiked rates.

With the monsoon expected in a couple of months, the government should work together with citizens to restore lakes, and also construct additional reservoirs to store water.

Q: But a lot of industrial plants are built on water beds and source water from lakes. Will this be something FKCCI will take note of and advise investors to desist from setting up industry at such spots?

It’s the government which brings big industrial units and promises water supply to such units. They should rethink ways to provide water before bringing them here.

Q: The Bruhat Bengaluru Mahanagara Palike (BBMP), in their new property tax system, claims that they are trying to ‘simplify and rationalise’ the tax slabs and categorise them. What’s the Federation’s main objection to it?

The Self-Assessment Scheme had a clear route in paying taxes. The government is trying to bring changes to that, which we object to it.

The way this scheme is presented is something we’re unhappy with. The Deputy Chief Minister and Bengaluru Development Minister D K Shivakumar had assured the overall hike in guidance would only be 6.5%.

I appreciate that, but it would be better if it’s made a rule. We would want a dialogue from the government assuring that there is no guidance tax on open land and double tax on built land. The increase will be around 200%.

Q: How does the Federation ensure labour welfare?

I’m very clear on this. Any organisation, enterprise, industry or service provider should take care of their staff and labourers at the factories and workers at the markets.

It is of paramount importance that they respect and take care of workers and ensure a labour friendly environment.

Q: In a city that is dubbed the ‘Startup and IT Hub of India,’ how are traditional industries trying to stay relevant?

In the year 2010, the city saw a boom in the Industrial Technology (IT) sector. Bengaluru is synonymous with IT companies.

That decade also saw a lot of startups and unicorn companies grow, and the corresponding growth of software. However, offline businesses have not seen a decline.

To this day, we see around 10,000 sellers in the Central Business District (CBD) areas like Chickpet on weekends. These businesses have used technology to scale up operations.

I also observe these offline businesses go online in tandem with the city trends.

Q: What do you make of the current status of Industrial Areas, established by the Industrial Area Development Board (KIADB)?

Soon after the government sets up an Industrial development area, they look the other way. It is sad to see such areas lacking basic amenities like roads and streetlights.

I raised this issue with Industries minister M B Patil and Chief Minister Siddaramaiah and urged them to insp