The Karnataka state cabinet, in a series of forward-thinking decisions, has laid out a comprehensive roadmap for urban development and economic expansion. Central to these reforms is the imposition of a one per cent fire cess on newly constructed multi-storey buildings, a measure designed to significantly enhance the efficiency and preparedness of the state’s fire department. This move is a direct investment in the safety and well-being of urban dwellers, particularly in rapidly densifying areas, contributing to safer, more liveable, and resilient urban environments.
Beyond fire safety, the cabinet has committed to fostering a thriving innovation ecosystem. A Centre of Excellence (CoE) in space technology is set to be established with an allocation of ₹10 crore over five years. This CoE, structured as a Section 8 company under the Companies Act, 2013, will address a critical shortage of testing infrastructure in the burgeoning space sector. With approximately 30 working prototypes emerging from Karnataka’s startup landscape each month, the demand for independent testing facilities is escalating. The Satellite Communication Industry Association (SIA-India) has been named the industry partner, ensuring a collaborative approach to nurturing local talent and propelling India’s NewSpace economy forward, while adhering to transparent procurement guidelines. This strategic investment in high-tech sectors is pivotal for creating future-ready, high-value jobs and attracting further foreign direct investment.
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Further stimulating economic growth and entrepreneurship, the Local Economy Accelerator Programme (LEAP) has been approved with a substantial budget of ₹1,000 crore over five years, with ₹200 crore earmarked for immediate implementation in the first year. LEAP is meticulously designed to support both nascent and established startups across the entire state, solidifying Karnataka’s reputation as a future-ready innovation hub. This programme aims to decentralise economic opportunities, ensuring that growth is not confined to major urban centres but permeates across all regions, fostering equitable development.
In a move to refine policy frameworks, the cabinet also approved amendments to the Karnataka Global Capability Centre (GCC) Policy 2024-29. These amendments seek to enhance clarity and consistency in the policy’s language and structure without altering its fundamental objectives. This ensures a stable and predictable regulatory environment for international businesses operating within the state, encouraging further investment and job creation.
Healthcare infrastructure also received significant attention. Approval has been granted for the establishment of a Kidwai Peripheral Cancer Treatment Unit within the Rajiv Gandhi Super Speciality Hospital in Raichur, at an estimated cost of ₹50 crore. Additionally, ₹62 crore has been sanctioned for equipping a new 450-bed hospital at the Indira Gandhi Institute of Child Health in Bengaluru. These investments underscore the state’s commitment to improving healthcare access and outcomes for its citizens, promoting a healthier and more productive populace.
Administrative reforms include the decision to amend the Acts of seven development boards and authorities, shifting the chairmanship to the Revenue Minister. These changes aim to streamline governance and enhance accountability in key regional development bodies. Furthermore, the Karnataka Private Medical Establishments (Amendment) Bill, 2025, has been proposed to regulate private ambulance services and mandate the permanent registration of mobile medical units as private medical establishments, ensuring higher standards of emergency healthcare.
These multi-faceted cabinet decisions collectively illustrate Karnataka’s proactive stance in urban planning and economic strategy. By investing in critical infrastructure, fostering technological innovation, bolstering public safety, and enhancing healthcare services, the state is actively shaping its cities to be more sustainable, equitable, and resilient for future generations. The integration of these various initiatives, from fire cess to space technology, showcases a holistic approach to urban development that prioritises both economic prosperity and the well-being of its citizens.
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