K’taka cabinet clears Udyoga Nidhi Scheme, aims to create 1 lakh jobs in 11 backward districts: Priyank Kharge
Bengaluru: The Karnataka Cabinet has approved the ambitious ‘Udyoga Nidhi’ scheme to boost industrial investment and job creation in the state’s backward districts, Minister for IT/BT and Rural Development and Panchayat Raj Priyank Kharge has said.
In a statement on Thursday, Kharge said the scheme aims to create one lakh new jobs in 11 backward districts and reduce regional inequality in the state.
Under the scheme, eligible Micro, Small and Medium Enterprises (MSMEs) and industrial establishments that create additional employment will receive an incentive of Rs 2,500 per additional employee per month for a maximum of 24 months, he said.
He further stated: “The government will provide an annual grant of Rs 305 crore for the scheme. The incentive will be released only after verification of new recruitment and salary payments to employees. This is to ensure that assistance reaches only those industries that actually create new jobs and retain them, ensuring transparency and accountability in implementation.”
The scheme will encourage the establishment of new industries and expansion of existing ones in 11 backward districts, including Kalaburagi, Bidar, Raichur, Yadgir and Bagalkot, he said.
The objective, the Minister said, is to prevent industries and jobs from being concentrated only in major cities like Bengaluru and to take investment to different parts of the state. Increased local employment opportunities will also reduce the need for youth to migrate to distant cities in search of jobs.
The ‘Udyoga Nidhi’ will be implemented in coordination with the state government’s ‘Yuva Nidhi’ scheme. While Yuva Nidhi focuses on support and skill development for youth to get jobs, Udyoga Nidhi will provide direct incentives to industries that create jobs.
“Development should not be limited to Bengaluru or a few cities. Investment and employment opportunities should reach every part of the state.
Our youth should not have to leave their hometowns and districts for jobs. Our government’s goal is to create good job opportunities in their own regions and enable them to build their future there,” Priyank Kharge said.
“Udyoga Nidhi is not just an industrial incentive scheme, but a result-based job creation programme. The government will support industries that create jobs and also ensure that those jobs are actually created and salaries are paid,” he added.
The Minister said Udyoga Nidhi will be an important step towards building a balanced and inclusive Karnataka by taking investment, industry and employment to backward regions of the state.
