ECONOMIC

SURVEY

ECONOMIC SURVEY 2022-23

2022-23

V R

Department of Planning, Programme Monitoring and Statistics, AI

M S Building, Gate 3, Floor 7, Ambedkar Veedhi, Bengaluru

http://planning.karnataka.gov.in
ECONOMIC SURVEY OF KARNATAKA
2022-23

February, 2023

Planning, Programme Monitoring and Statistics Department

 First Edition : 1978-79

45th Edition : 2022-23

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 Message

Economic Survey of Karnataka summarises the performance of government programmes

and policies, achievements, challenges, and way forward for expediting the growth
trajectory of State’s Economy. This document is presented in the Legislature during the
previous day of the budget session of every year with an objective of evaluating the state
across agriculture, industry, and service sectors and to identify interventions for initiating
appropriate action.

I am happy to state that the state has increased the GSDP from Rs.19.62 lakh crore in
2021-22 to Rs. 22.41 lakh crore in 2022-23 with growth of 14.2%. The percapita income
has increased from Rs.2,65,623 to Rs. 3,01,673 during the same period. Further Karnataka
(3.26%) has maintained the fiscal deficit within 4% of GSDP by containing revenue deficit,
increasing tax and non-tax revenue and reducing revenue expenditure. State ranks first
in Software/ Service exports and second in FDI inflows among States. Due to dynamic
and innovative welfare initiatives of the state, the labour force participation rate from
51.2% in 2018-19 to 56.9% in 2020-21 and unemployment rate has come down from 3.9% to
2.7% during the same period.

In order to increase the GSDP growth across sectors, Economic Survey has highlighted
measures like encouraging agri-tech startups, agro-processing, multiple cropping,
micro irrigation expansion, private sub-sector specific ‘plug and play’ industrial clusters
pushing MSME growth beyond Bengaluru, leveraging New Education Policy to inculcate
skilling from secondary education onwards, Rural Tourism, Asset Monetisation, green
technologies, waste to resource, Digital Technologies, infrastructure led growth through
public private partnerships, decentralized governance to make District as a fulcrum of
development by strengthening capacity building, infrastructure support and delegation
of powers.

I seek the cooperation and support from policy makers, industry bodies, civil society
organisations, academicians, and citizens to join hand for building Nava Karnataka for
Nava Bharat. The insights from this document would go a long way in achieving USD 1
Trillion economy for Karnataka.

Basavaraj Bommai
Chief Minister of Karnataka

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 PREFACE

The Economic Survey is published every year by the Government of Karnataka with
an objective to assess economy at present considering the past and provides road
map for future. Karnataka has continued its progressive journey; it leads in several
Sustainable Development and Human Development indicators. It is a leading
state in technology and innovation with number one position in Innovation Index
and State Start-ups’ ranking, state’s Ease of Doing Business ranking from 17th to
the top category and has healthy financial position with revenue deficit less than
4% of GSDP. State ranks first in software exports and stands fourth in merchandise
exports in India.
This year’s economic survey set a vision to $1 trillion GSDP (99.5 lakh crore) by
2032 from the existing $ 0.27 trillion (22.41 lakh crore) in 2022-23. Nava Karnataka
initiatives will augment to achieve this goal.
Agriculture sector initiatives like encouraging agri-tech startups, agro-processing,
market development, multiple cropping, micro irrigation expansion, and
encashment of carbon credits, will increase the growth from 14.8% to 18.8% and
GDP from 3.09 lakh crore to 16.5 lakh crore by 2032.
Industry sector strategies includes using available industrial land besides private
sub-sector specific ‘plug and play’ industrial clusters pushing MSME growth
beyond Bengaluru, leveraging New Education Policy, production-linked-incentive
scheme, industrial policy 2020-25, physical and digital infrastructure will increase
the growth from 9.1% to 17.6% and GDP from 4.29 lakh crore to 21.4 lakh crore by
2032.
Karnataka’s services sector is a source of strength and is poised to gain significantly
from tourism, e-mobility, Digihealth, Agritech, Fintech, Edutech and Gig Economy,
which will increase the growth from 13.4% to 16% and GDP from 13.14 lakh crore to
61.6 lakh crore by 2032.
Karnataka aims to strengthen its decentralized governance to make District as
a fulcrum of growth and development by strengthening capacity building,
infrastructure support and delegation of powers.

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I sincerely acknowledge Departments for providing information and Dr. Richard
Vincent D’Souza, Secretary, Planning Department, for his cooperation. I would
like to thank Mr. N. Madhuram, Director, Directorate of Economics and Statistics,
Mr. C. Kempaiah, Senior Consultant, Mr. K. Narasimha Phani, Joint Director,
Mr. R. Manjunath, Assistant Director and Coordinators/Nodal officers/Supporting
Staff, for their tireless work, to bring out 2022-23 Economic Survey Report within
stipulated time. I appreciate the substantial contribution from Dr. A.V. Manjunatha,
Director, Karnataka Evaluation Authority in completing this document.
I trust this document will provide insights to policy makers, industry bodies,
academicians, students, and citizens about the performance of schemes and
policies, and provides strategies for building a resilient economy of $ 1 trillion GDP
vision at the earliest by 2032.

Dr. Shalini Rajneesh I.A.S.

Additional Chief Secretary to Government
Planning, Programme Monitoring & Statistics Department

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 ContentS
NO. CHAPTER PAGE NO.

EXECUTIVE SUMMARY 1-16

1 STATE INCOME AND PRICES 17-50

2 FISCAL DEVELOPMENT AND STATE FINANCES 51-90

3 INVESTMENT AND EXPORTS 91-124

4. RURAL DEVELOPMENT 125-148

5. URBAN DEVELOPMENT 149-174

6. AGRICULTURE AND FOOD MANAGEMENT 175-222

7. NATURAL RESOURCE MANAGEMENT AND ENVIRONMENT 223-302

8. INDUSTRY 303-328

SKILL, ENTREPRENEURSHIP, EMPLOYMENT AND

9. 329-356
LABOUR WELFARE

10. ECONOMIC INFRASTRUCTURE 357-418

11. HUMAN DEVELOPMENT 419-494

12. GOOD GOVERNANCE PRACTICES IN KARNATAKA 495-520

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EXECUTIVE SUMMARY

Karnataka GSDP in All India GDP is at 8.2%. Karnataka has the highest per-capita
incomes Rs.3.01 lakh which is higher by 77% to All India. It leads in several Sustainable
Development Goals with an overall score of 72 out of 100, ranking third among states.
Human Development Index of the State showed improvement from 0.432 in 1999 to
0.644 in 2021. It is a leading state in technology and innovation with number one position
in Innovation Index and State Start-ups’ Ranking and has healthy financial position with
revenue deficit less than 4% of GSDP. Bengaluru takes pride in its well-deserved status
as the start-up capital of India as 40 out of 100 unicorns of India are housed in Bengaluru.

Karnataka has emerged as an attractive Investment Hub as a result of Industrial Policy

2020-25 and single window affidavit-based clearances, which also elevated state’s Ease
of Doing Business ranking from 17th to the top category. State ranks first in software
exports and stands fourth in merchandise exports in India.

Karnataka is at the first position in linking 2.91 lakh RCH IDs with Aadhar. It is the first State
to successfully auction expired mining leases.It is awarded with “Rashtriya Khanij Vikas
Puraskar” third prize under category-I (Fe, Limestone, and Bauxite) for performance in
Mineral Exploration from Ministry of Mines, Government of India. Govt. of India’s Jal Shakti
Ministry awarded Karnataka First prize in Sujalam 2.0 campaign and Swachhata Hi Seva-
2022 campaign, and second rank in the ODF declaration Villages as aspiring at nation.
Under the Swachha Swastha Sarvatra Program, 46 Community Health Centers and 22
Urban Primary Health Centers have won the “Swachha Ratna” award for maintaining
high levels of hygiene and cleanliness in and around public health centres. World book
of records, London has recognised Karnataka Digital Public Library for revolutionary
initiatives and brining drastic changes in public library system.

Karnataka is awarded “Best State for Horticulture 2022” for promoting horticultural
development and production in the state during the 13th Agriculture Leadership Awards
2022. It is ranked fifth in marine fish production and seventh in inland fish production
in the country during 2021-22. World Bank selected Karnataka to lead other states as a
Light House partner for REWARD (Rejuvenating Watersheds for Agricultural Resilience
through Innovative Development).

The state has set a vision to $1 trillion GSDP (99.5 lakh crore) by 2032 from the existing
$ 0.27 trillion (22.41 lakh crore in 2022-23). Nava Karnataka initiatives will augment the
GSDP to $1Trillion (99.5 Lakh Crore) by 2032. Its citizens must unite under outcome-based
strategies to meet this goal. This calls for a new perspective in planning, goal setting,
outcome-based monitoring and evaluation, strategic and human development-oriented
initiatives to achieve sustainable development. The next decade presents a generational
opportunity for our state, and all our citizens should work together to achieve this goal.

1. STATE INCOME AND PRICES

▶▶ The state has increased the GSDP from Rs.19.62 lakh crores in 2021-22 to Rs. 22.41
lakh crore in 2022-23 with a growth of 14.2%. The percapita income has increased
from Rs.2,65,623 to Rs. 3,01,673 during the same period.
 2 EXECUTIVE SUMMARY

▶▶ Agriculture sector is expected to reach 5.5% growth as against 8.7% during 2021-
22. Industry sector is anticipated to reach 5.1% showing the gradual recovery in
industries growth as against to 10.3% during 2021-22, It needs further push in labour
intensive industries. Services is expected to attain a level of 9.2% due to growth in
IT related services (23% of the GSDP), which was 5.4% during the previous year.
There is need to promote Financial Services (6.4%) and transport (2.8%) sectors. IT
policy 2020-25 has a potential to promote IT beyond Bengaluru.
▶▶ Highest share of services in GSVA at 64 % followed by Industries at 21% and
Agriculture at 15%.
▶▶ GDP grew by 7.9% during 2022-23 compared to 7% of India.
▶▶ It is expected that GSDP at constant (2011-12) prices will reach Rs.13,26,319 Crore
with 7.9% growth rate. Growth during 2021-22 is 11.0%.
▶▶ Karnataka’s Percapita Income of Rs.3,01,673 is higher by 77% to All India Percapita
Income of Rs.1,70,620 during 2022-23
▶▶ During 2022-23, the share of Karnataka GSDP in All India GDP is at 8.2% as
compared to 8.3 % in 2021-22.
▶▶ As per the District Domestic Product 2021-22, the districts of Bengaluru Urban,
Dakshina Kannada, Belagavi, Tumukuru and Mysore are top five contributing
districts and districts of Koppal, Chamarajanagar, Gadag, Yadgir and Kodagu are
poor contributors to GSDP.
▶▶ Each district has a potential to grow in one or the other sectors which can be
used by the district planning committees to support NITI Aayog’s aspirational
programme “District as a Fulcrum of Development” to strengthen and enhance
GDP.
▶▶ Bengaluru Urban District’s Percapita Income ranks first with Rs. 6,21,131 and last is
Kalburgi with Rs.1,24,998.

2. FISCAL DEVELOPMENT AND STATE FINANCES

▶▶ Karnataka (3.26%) has maintained the fiscal deficit within 4% of GSDP by

containing revenue deficit, increasing tax and non-tax revenue, and reducing
revenue expenditure.
▶▶ Total receipts have increased from Rs. 2,59,309 crore in 2021-22 (RE) to Rs.2,65,374
crore in 2022-23 (BE).
▶▶ Revenue receipts have increased from Rs.1,89,579 crore in 2021-22(RE) to Rs.1,89,888
crore in 2022-23(BE).
▶▶ Capital receipts is expected to increase from Rs.69,730 crore in 2021-22 (RE) to
Rs.75,487 crore in 2022-23(BE),
▶▶ Development Expenditure increased from Rs.1,63,825 crore in 2021-22(RE) to
Rs.1,73,309 crore in 2022-23(BE). Share of developmental expenditure in total

Karnataka Economic Survey 2022-23

 EXECUTIVE SUMMARY 3

expenditure has marginally increased from 65.21% to 65.47% for the same reference
period.
▶▶ Total expenditure has increased from Rs.2,53,165 crore in 2021-22(RE) to Rs.2,65,720
crore in 2022-23(BE).
▶▶ Non-tax revenue has increased from Rs.9,000 crore in 2021-22(RE) to Rs.10,941
crore in 2022-23(BE).
▶▶ Per Capita Development Expenditure has increased from Rs.23,172 in 2021-22(RE)
to Rs.24,171in 2022-23(BE).
▶▶ Capital disbursement as % of GSDP has increased from 2.29% in 2021-22(RE) to 2.31
% in 2022-23(BE).
▶▶ Improving efficiency of public expenditures, ensuring flow of resources for SDGs,
rationalization of various schemes and subsidies and ways to improve revenue
sources crucial for financial progress of the State.

3. INVESTMENT AND EXPORTS

▶▶ State attracted $39.36 billion FDI equity inflow over the period October 2019 to
September 2022, which is 23% of all India.
▶▶ 393 Investment projects worth Rs. 2.37 lakh Crore has been approved with the
generation of employment to the tune of 1.95 lakh during April to December 2022.
▶▶ State Government launched several start-up-focused funds that have a corpus of
$ 47.3 million.
▶▶ Karnataka is home to over 5500+ IT/ITES companies, ~750 MNCs contributing to
over $ 58 billion of exports, giving direct employment to over 12 lakh professionals
and creating over 31 lakh indirect jobs. The industry contributes to over 25% of the
State’s GDP. The share of software exports is nearly 40% of the country’s exports of
$155 billion.
▶▶ Karnataka’s Bio Economy recorded 15% Year over Year (YoY) growth in 2022 valued
at $18.9 billion.
▶▶ 30% of the overall GDP is driven by the digital economy. This initiative of the
Beyond Bengaluru mission of KDEM, will focus on hosting 5,000 IT companies
and start-ups by 2026 in the Mysuru, Hubbali and Mangaluru clusters and creating
Employment opportunities for 10 Lakh (direct and indirect) by 2026.
▶▶ Karnataka State with Rs. 41,678 Crore stood second position on FDI inflows among
26 Indian States from April to September 2022
▶▶ Karnataka’s exports amounted to about Rs. 9,51,794 crore in 2021-22 which
constituted about 18.9% of the Country’s exports. The share of Merchandise
exports in the National exports constitutes around 6.13% and Software/ Service
exports around 41 % for the year 2021-22.
▶▶ State’s exports in Agriculture Commodity amounted to about $1,300 million in
2019-20 and $1,582 million in 2020-21 with a significant increase of 21.7%.

Karnataka Economic Survey 2022-23

 4 EXECUTIVE SUMMARY

▶▶ 72 companies have been registered under KESDM 2013 Policy received incentives
of Rs. 14.57 crore.
▶▶ K-Tech Innovation Hubs housed 101 teams across 4 centres and 50 seats have been
occupied by women.
▶▶ 40 District Innovation Hubs, 60 Startups, 35 Patents, 302 Prototypes, 400+ events
have been achieved under New Age Incubation Network (NAIN)
▶▶ Karnataka’s policies and programmes for attraction of private Indian and Foreign
investments are based on complementarity between (a) Public (Union, State and
Local Government) investments and private investments and (b) total (public and
private) investments and exports. Karnataka’s performance in attracting private
and foreign investments and increasing exports in both traditional and modern
sectors are contributory to attainment of higher economic growth (or GSDP) and
productive employment generation. This approach leads to a Karnataka model of
investment and export.

4. RURAL DEVELOPMENT

▶▶ During the current year, an amount of Rs.1,715 crore has been spent till the end of
November 2022 for the construction of 93,674 houses and 1099 house sites have
been distributed under various housing schemes in rural area.
▶▶ During 2022-23 under 15th Finance Commission Grants, Rs.1,653 crores, Rs.71 crores
and Rs.36 crores have been released up to end of November 2022, to the GP, TP
and ZPs, respectively which has been completely utilized.
▶▶ For 2022-23, 12.33 lakh FHTCs are provided by incurring an expenditure of Rs. 2,204
crore upto the end of November 2022 under Jal Jeevan Mission. There are about
2,20,000 rural public drinking water sources established in the State.
▶▶ During 2022-23 under SBM(R), Rs. 62 crore has been spent to build 9871 Individual
Household Latrines and 87 Community Sanitary Complexes up to end of November
2022.
▶▶ During the current year, 12,180 litres of bio diesel has been produced by incurring
an expenditure of Rs.214 lakhs up to the end of November 2022.
▶▶ During the current year under PMGSY, NGNRY and MMGRAY, 5,989 kms of road
length has been maintained by incurring an expenditure of Rs. 94 crore up to
November 2022.
▶▶ During the current year 22,332 persons have been imparted skill training and 5,967
persons have been placed up to end of November 2022 under NRLM through
KSRLPS by incurring an expenditure of Rs.392 crore.
▶▶ The powers, functions and provisions given to panchayats should be optimally
utilized for planning, programme implementation, budgeting, preparation,
monitoring and evaluation of decentralized plans and resource mobilization.
▶▶ Convergence of MGNREGA with schemes of agriculture, horticulture, forestry, and
watershed departments for more employment generation to close the demand-
supply gap.

Karnataka Economic Survey 2022-23

 EXECUTIVE SUMMARY 5

5. URBAN DEVELOPMENT

▶▶ Rs.925 crore has been provided towards underground drainage facilities to 110
villages merged to BBMP. The cumulative physical progress achieved is 1,512 Kms
with Rs.788 crore.
▶▶ During 2022-23, 4 UGD works, and 8 Water Supply works were taken up in
Davanagere, Harihara, Ranebennur and Byadgi towns under Tranche-1 and 6
UGD and 7 Water Supply works in Mangaluru, Puttur, Udupi and Kundapur towns
were taken up under Tranche-2 by KIUWMIP. Out of Rs 1,188 crore and Rs 1000
crores of project cost, Rs. 987 crore and Rs.620 crore, respectively up to the end of
November 2022 under Tranche-1 & 2.
▶▶ 287 cities/towns having less than one lakh population have been taken up with
Rs.9,230 (Central Assistance of Rs.4615 crore) under AMRUT 2.0.
▶▶ 148.17 kms will be constructed in four Sub-Urban Rail Corridors under Bengaluru
Sub-Urban Rail Project at Rs. 15,767 crore has been taken up by K-RIDE.
▶▶ Government has approved to take up 45 Kms of ‘ Outer Ring Road- West metro’
in the following routes; Kempapura to J.P. Nagar 4th Phase ( 32.15 Kms) Hosahalli
on Magadi Road to Kadabagere (12.50 Kms) under Bangalore Metro Rail Project
Phase-3.
▶▶ E-Waste Management can produce an estimated turnover of 2900 crores p.a. in
Karnataka because of IT hub of India.
▶▶ High use of Digital technologies should be made available as well by way
infrastructure development using PPP. Further effective coordination between
BWSSB and BBMP is required to control floods.
▶▶ Implementation of strong regulatory framework to stop encroachments of
government lands and get back the encroached lands swiftly as well.
▶▶ Special emphasis to be given for lift irrigation projects for supplying treated water
from Bengaluru to neighbouring dry districts.
▶▶ Providing slums with entitlements through development of vertical slums under
PPP and remaining land to be brought under asset monetization for generating
revenues.
▶▶ City Comprehensive Mobility plans (CMP) to be completed for all cities and ULBs,
prioritizing areas witnessing heavy traffic congestion. Establishing townships on
PPP for reducing congestion
▶▶ Resource mobilization measures are waste to resource, timely tax collection,
increasing value of land considering the market value, clean and green initiatives,
green bonds, private partnerships.
▶▶ Setting up satellite towns in Kalyana Karnataka Region utilizing central fund.

Karnataka Economic Survey 2022-23

 6 EXECUTIVE SUMMARY

6. AGRICULTURE AND FOOD MANAGEMENT

▶▶ During 2022-23 it is estimated that 81.56 lakh ha. of area under food crops will be
cultivated with the production of 134.89 lakh MTs.
▶▶ Till November 2022-23, 39.89 lakh farmers benefited under Krishi Yantra Dhare
scheme (farm mechanisation).
▶▶ 1,30,244 soil samples have been collected, 59,149 soil samples have been analyzed
as on November 2022 under soil health card portal.
▶▶ Under Pradhana Mantri Fasal Bima Yojane during 2021-22, Rs.833 crore of claims
has been settled to 8,07,281 farmers and during Kharif 2022-23, Rs.257 crore of
claims has been settled to 5,02,080 farmers.
▶▶ Under Organic Farming Adoption and Certification, 26,611 hectares area of 16,514
farmers have been certified.
▶▶ Out of 129.70 lakh hectares of area avalable for watershed interventions, 72.00 lakh
hectares has been developed with watershed interventions and 57.7 lakh hectares
will be covered.
▶▶ Under the PM Kisan-Karnataka Scheme the State Government has transferred
the financial assistance of Rs. 4,821 crore to 50.35 lakh farmers since inception.
During 2022-23 State has transferred the financial assistance of Rs. 957 crore to
47.83 lakh farmers.
▶▶ 344 Amrith Famers Producer Organizations have been created in Agriculture,
Horticulture, Sericulture, Animal Husbandry and Textile & Handloom sectors.
▶▶ 156 markets are brought under Unified Market Platform with a transaction of 9.12
crore MTs of agricultural commodities worth Rs. 2.63 lakh crore.
▶▶ 25,731 MT of Greengram have been procured at an estimated cost of Rs.200 crore,
benefiting 22,181 farmers during 2022-23 under Minimum Floor Price scheme.
▶▶ 890 works costing Rs.319.61 crore have been completed under RIDF-24 for
strengthening market infrastructure.
▶▶ 2,500 beneficiaries have received scientific beekeeping training and a total of
7,950 honey boxes have been distributed.
▶▶ 2,400 activities have been undertaken covering 1150 beneficiaries under Post
Harvest Management, 665 number of Farm machinery are distributed to 500
farmers, protected cultivation in 960 hectares of area covering 720 beneficiaries
and 484 farm ponds to harvest rainwater.
▶▶ 50,335 farmers covering 28,000 hectare area is brought under Horticulture, 573
hectares crop area is rejuvenated and 60 lakh quality seedlings and grafts of
various horticultural crops have been distributed.
▶▶ 1.23 lakhs Tissue Culture plants, 26 tonnes of bio-fertilizers and 9245 liters of Liquid
bio-fertilizers have been produced up to the end of November-2022.

Karnataka Economic Survey 2022-23

 EXECUTIVE SUMMARY 7

▶▶ Karnataka has 3.03 crores of livestock and 5.95 crores of poultry population and its
share in all India was 5.41% and 6.98%, respectively.
▶▶ 64,49,701 of cattle, buffaloes, sheep and goat were vaccinated against Haemorrhagic
Septicemia upto November 2022 during 2022-23.
▶▶ Artificial Insemination facility has been provided through 4234 institutions.
Sperm stations are located at Bengaluru and Dharwad. During 2021-22, 8.17 lakhs
calves were born, out of 34.37 lakhs cattles were inseminated. During 2022-23
(up to November 2022), 5.27 lakhs calves are born, out of 22.27 lakhs cattles are
inseminated.
▶▶ During the year 2021-22, Piggery rearing Amruth FPO’s have been established
in five districts (Mysuru, Mandya, Hassan, Tumkuru & Dharwad). During 2022-23
(upto November 2022) 1935 piglets are distributed to pig rearing farmers and 887
farmers are trained for promoting piggery.
▶▶ 15,210 primary dairy co-operative societies are functioning under 16 district milk
unions with an enrolment of 26 lakh farmers.
▶▶ 100 Goshalas are being constructed to preserve the weak, sick, orphan, animals,
which farmers cannot rear, of this 20 have been started.
▶▶ Punya Koti Dattu Yojana has been started first in the country to conserve cattle
in government and private goshalas. 208 cattle have been adopted on this online
portal. A total donation of Rs. 22 lakhs collected for the maintenance of several
cattle.
▶▶ 99.35 lakh cattle have been vaccinated as a precautionary measure against Lumpy
skin disease and Rs 37 crore has been released to compensate the dead calves,
cattle and bulls.
▶▶ 275 well-equipped mobile veterinary vehicles for 290 lakh cattle (one mobile
veterinary vehicle for every one lakh cattle population) under Pashu Sanjeevini
Mobile Veterinary Surgery Vehicle have been started.
▶▶ 3.31 lakh under marine and 6.53 lakh under inland fishermen are involved in various
fisheries activities.
▶▶ 8030 motorised boats are being supplied with 300 litre kerosene per month per
boat at PDS rate. During 2022-23, an amount of Rs.130 lakh has been incurred.
▶▶ Rs. 23 lakh insurance has been provided to 78,983 registered fishermen under
Centrally Sponsored Group Accident Insurance Scheme
▶▶ 7 districts which constitute more than 50% of the Cultivable Waste, can be used
for cultivation by incentivizing Rs.40,000 per hectare (seed minikit/seedlings).
Agro-forestry & horticulture crops may be encouraged in these districts.
▶▶ 79 lakh hectares of area single cropped area has to be brought under multi
cropping through integrated farming system.

Karnataka Economic Survey 2022-23

 8 EXECUTIVE SUMMARY

▶▶ 65.22 lakh hectares of flood irrigation area has to be brought under Irrigation in
phases based on the dominant crop grown which is prone to higher yield upon
irrigation.
▶▶ Setting up of Seed to Sales Single Window Centres (Farmers Welfare Centres)
through convergence of departments and activities at taluk level.
▶▶ Create end to end (e2e) value chains for export-oriented Food Parks and
Infrastructure and Cold chain infrastructure (Chilli in Byadagi, Rose onion in
Chikballapur, Coffee in Chikkamangaluru, Hassan and Kodagu).
▶▶ Setup state of the art Post Harvest Management centers within 25 kms of
production (Incentivize private investment following ODOP schemes)to improve
post-harvest processing from 1-2% and reduce spillage form current levels of 25-
30%, improve the proportion of horticulture product meeting Grade-A criteria
from current levels of 30-45% and fetch better prices for farmers.
▶▶ One veterinary institute for every 5000 livestock units
▶▶ Conservation and development of Indigenous Breeds of cattle like Krishna Valley,
Amruth mahal, Khillar, Deoni and breeds of Sheep and Goat.
▶▶ Expand production linked incentive schemes worth 25 billion dollars to promote
manufacturing and exports using hub and spoke model.
▶▶ Strengthening Inland fish marketing infrastructure and cold chain.
▶▶ 10.9 lakh Antyodaya Anna, 116 lakh Priority Ration Cards and 25 lakh Non-Priority
Ration cards issued in the State under National Food Security Act 2013 and
are linked with Aadhar. 87.65% of ration cards and 94.8% of the members have
completed the e-KYC.
▶▶ 20,222 fair price shops are distributing ration through bioauthentication.
▶▶ 32,677 ineligible AAY cards have been cancelled and converted to NPHH.
▶▶ Rs.3.82 crore fine has been levied for the ineligible ration card holders.
▶▶ Common Service Centres, Retail sale of 5kg LPG of cylinders, sale of non-PDS
commodities is undertaken to improve income to fair price shop owners.
▶▶ Introducing locally grown high nutrition food into PDS
▶▶ Expanding distribution biofortified rice under PDS for increasing nutritional levels

7. NATURAL RESOURCE MANAGEMENT AND ENVIRONMENT

▶▶ 47,077 hectares has been afforested by planting 283 lakh seedlings and 315 lakh
seedlings were distributed to farmers and general public for planting in private
lands in 2022-23 upto the end of November-2022.
▶▶ Realised revenue of Rs.18,648.91 lakh during 2022-23 (upto November-2022) from
marketing of forest produce such as timber, firewood and Charcoal, Bamboos,
receipts from sandal wood, Minor Forest Produce and other sources of revenue.

Karnataka Economic Survey 2022-23

 EXECUTIVE SUMMARY 9

▶▶ Bio-diversity Management Committees have been constituted in 6012 GPs and

all GPs have been written People’s Biodiversity Registers.
▶▶ An amount of Rs.11,642 crore have been spent to create an anticipated irrigation
potential of 43 lakh hectare in 2022-23 (up to November 2022).
▶▶ Gross Irrigated Area as percentage of total cultivated area has been increased
from 16% in 1980-81 to 41% in 2020-21.
▶▶ It is proposed to provide irrigation facilities to 5.94 lakh hectare of land in drought
prone areas of Vijayapura, Bagalkot, Kalaburagi, Raichur, Koppal, Gadag and Yadgir
districts by taking up 9 irrigation schemes under UKP – III.
▶▶ KNNL has taken up 45 tank filling proposals in 13 districts covering 2034 tanks
with an estimated cost of Rs.9,362 crore.
▶▶ 42 modernization works at a cost of Rs.5,063.40 crores has been taken up by CNNL
to improvise the efficiency of canals.
▶▶ Department of Mines and Geology has successfully auctioned 34 mineral blocks
including 17 ‘C’ category iron ore leases, 7 expired iron ore mines, 2 Gold blocks
and 8 limestone blocks. During 2022-23 has realized revenues of Rs.3,559 crore (up
to November 2022).
▶▶ During the year 2022-23, granted 148 non-specified and 22 specified minor mineral
quarry leases.
▶▶ 179 auctioned sand blocks over an extent of 2340 acres and 125 patta land sand
blocks over an extent of 996 acres are working under Implementation of New
Sand Policy-2020. 65 sand blocks are in operational and disposed 24,082 MT of
sand through GP with collection of Rs.22 lakh.
▶▶ KSNDMC has established a network of GPRS enabled and solar-powered
Telemetric Rain Gauges at all the 6,500 Gram-panchayaths (25 sq. km each) and
923 Telemetric Weather Stations at all the 747 Hoblis (sub- Tehsil : 200 sq. km each)
and 176 Micro-Watersheds in the state for forecasting weather related information.
▶▶ Promoting afforestation by agriculture, horticulture, rural and urban development,
and rural developments schemes
▶▶ Simplification and relaxation of existing regulations to promote agro-forestry
species, like Silver Oak, Melia dubia, Acacia auriculiformis and other species, like
Sandal, Neem, Teak and Red sanders etc.
▶▶ Need to evolve policy for Circular Economy (CE) for SWM to replace the linear
economy of ‘take, make, use and dispose’ and reduce environmental burden.
▶▶ The river rejuvenation programme of 17 polluted river stretches in Karnataka is
aimed at improving river water quality so that benefit of life support system of
sacred rivers is continuously available for future.

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 10 EXECUTIVE SUMMARY

8. INDUSTRY

▶▶ State’s production of silk yarn is 7,759 MT and import is 762 MT till August 2022.
▶▶ Contribution of registered factories of Karnataka stood at 6.18% of total fixed
capital, 6.20% of total output and 7.16% of GVA in 2019-20 as per ASI results.
▶▶ Subsidy of Rs.96 crore for 562 MSME industrial units and Rs.44 crore for 17,128
artisans of Khadi, Coir and Handicrafts sectors are provided.
▶▶ 695 large and mega industries are working with Rs. 2.36 lakh crore capital
investment by providing employment opportunities to 4.95 lakh people.
▶▶ 10 clusters have been assisted with Rs. 4 crore grants under the Cluster Development
Programme (MSE-CDP).
▶▶ Under FMCG cluster programme, more employment opportunity will be created
for youths of Kittur Karnataka and Kalyan Karnataka regions.
▶▶ Food Karnataka Ltd., has been nominated as the nodal agency for the
implementation of the 5 Food Parks at Malur, Bagalkote, Hiriyuru, Jewargi and
Vijayapura in the State
▶▶ 15,000 acres of available industrial land (across Vijayapura, Ballari, Dharwad,
Shivamogga, Hassan, Ramanagara, Tumakuru, Chikkaballapur districts) would
be optimally utilised besides private sub-sector specific ‘plug and play’ industrial
clusters pushing MSME growth Beyond Bengaluru and generating employment
of 45-50 Lakhs.
▶▶ Operationalize container handling facility at Mangalore port to divert in bound
and out bound cargo from Chennai, Tuticorin and Kochi ports.
9. SKILL, ENTREPRENEURSHIP, EMPLOYMENT AND LABOUR WELFARE

▶▶ Efforts of the government schemes and policies has led to increase in LFPR (15 &
above) from 51.2% in 2018-19 to 56.9% in 2020-21 and decrease in unemployment
rate from 3.9 % in 2018-19 to 2.7% in 2020-21.
▶▶ 73.74 lakh Unorganised workers have been registered across the state under
e-shram portal.
▶▶ Under PM Street Vendor’s Atma Nirbhar Nidhi, Rs. 244 crores has disbursed to
1,99,049 street vendors
▶▶ Building and other construction Workers Welfare Board has provided financial
assistance of Rs.1,719 crore to 26.25 lakhs eligible workers
▶▶ Accident benefit of Rs. 5.25 crore has been disbursed in 111 cases and an educational
assistance of Rs.23.70 lakh has been sanctioned to 237 beneficiary students under
Karnataka State Private Commercial Transport Workers’ Accident Benefit Scheme.
▶▶ In Karnataka full medical care has been extended to about 45.76 lakh insured
persons and 180 lakhs members of their families through a network 10 ESI
Hospitals. 116 full time ESI Dispensaries and 2 Diagnostic Centres are also operating
for the welfare of labours.

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 EXECUTIVE SUMMARY 11

▶▶ 2.04 lakh applications were cleared under Karnataka Karmika Adalat 2.0 campaign
▶▶ Establishing skill labs through public private partnership in schools and colleges.
▶▶ Strengthening skilling infrastructure at ITIs and Polytechnics, through partnerships
with industry leaders such as Siemens, Tata Technologies, to train the workforce
on emerging technologies.
▶▶ “Centre of Skill Excellences” to be built to serve at levels of the skill competency,
Competency in collaboration with Industries.
▶▶ Instituting Human Resource Development Fund (HRDF) will be explored where
certain level of contribution comes from industries based on the turnover and
manpower strength for Reskilling and Upskilling of their employees.
10. ECONOMIC INFRASTRUCTURE

▶▶ Niranthara Jyothi Yojane is a major project that aims to segregate the rural area
loads into agricultural and non-agricultural loads to provide 24 hours of quality
power supply to rural areas and assured hours of power supply to the irrigation
pump sets.
▶▶ Under SHDP-IV, approval has been accorded for implementation of 7800 km road
development in 3 stages at Rs. 10,000 crores.
▶▶ Rs 1 crore for employees of KSRTC and Rs. 50 lakhs for NWKRTC and KKRTC under
Accident insurance scheme is implemented.
▶▶ “Vidyanidhi” scheme has implemented for promotion of education and special
scheme for health facility for post-matriculation of children of yellow board taxi
drivers and auto rickshaw drivers.
▶▶ The Bangalore Signature Business Park project is being developed on 407 acres
of land adjacent to the Kempegowda International Airport and development of
Trunk Infrastructure at a total cost of Rs.168 crore.
▶▶ Proposal of 81 projects amounting to Rs.7,635 crore is submitted to Sagaramala
Cell of Ministry of Ports, Shipping and Waterways.
▶▶ NABARD’s credit potential of Rs.3. 59 lakh crore (sector wise: Agriculture-49.90%,
Micro, Small and Medium Enterprises-37.59%, Export Credit-1.61%, Education-1.72%,
Housing-7.97%, Renewable Energy-0.36%, Social Infrastructure involving Bank
Credit-0.85%) has been projected for FY 2023-24 for the priority sector in the State.
▶▶ Under the Agri Infra Fund scheme of Atma Nirbhar Scheme of Central Government
Rs. 313 crore of loan has been sanctioned at 4% interest rate to 895 PACS through
NABARD to create post-harvest facility to farmers and Rs.158 crore of loan has
been disbursed to 706 PACS by DCC banks.
▶▶ Under central sponsored scheme it has been intended to computerize 6040 PACS
with the cost of Rs.236 crore at Rs.3.91 lakhs per PACS to provide better services to
farmers and rural customers.

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 12 EXECUTIVE SUMMARY

▶▶ Need for application of IT solutions such as SCADA to augment collection

and collation of data and reduce manual interventions to ensure maximum
uninterrupted power supply.
▶▶ Encourage non-motorable transport such as metro transport, bicycle, also walking
for short distances.
▶▶ Promoting e-mobility through incentives, creation of infrastructure and R&D
(retrofitting petrol and diesel vehicles) through public-private partnerships
▶▶ The credit offered to farmers from cooperative institutions is limited due to their
insufficient financial resources. Cooperatives can use ceding paripassu charges in
favour of banks which can supplement the financial needs of the farmers.
11. HUMAN DEVELOPMENT

▶▶ Bangalore Urban stands first with HDI value of 0.738 and Yadgir, Kalaburagi and
Raichur are the districts in the last 3 positions with HDI value 0.538, 0.539 and
0.562 respectively (UNDP 2019).
▶▶ Progress in the state’s health indicators over the past few years has been
encouraging. The death rate is already below the target level and the birth rate is
also decreasing rapidly. Maternal mortality rate (per 1,00,000 live births) which was
97 in 2015 has been decreased to 69 in 2020 and the infant mortality rate (per 1000
live births) was 28 in 2015 and 19 in 2020. The state total fertility rate declined to 1.7
in 2020 (as per SRS data). The percentage of Institutional deliveries is 99.9.
▶▶ NTEP Karnataka is aiming at Universal Access and Zero TB deaths as a part of End
TB Strategy. Death rates has decreased from 8% in 2009 to 6% in 2021 despite high
HIV – TB burden. The success rates of TB treatment have improved to 82%.
▶▶ Malaria cases in the state are decreasing significantly and the state is in category-I
of malaria control criteria.
▶▶ Under National Leprosy Control Program the leprosy eradication rate in 1986 was
40/10000, it has come down to 0.31/10000 by the end of November 2022.
▶▶ In the State during 2022-23 (Upto Nov) 1.46 Lakh children were detected with
Refractive Error and 3.44 lakh Cataract Surgeries conducted.
▶▶ Under Ayushman Bharath Arogya Karnataka 3,419 hospitals have been empanelled
of which 2,940 are Government and 479 are private hospitals. 1.22 crores AB-ARK
card are issued, and 9.23 lakh beneficiaries availed the benefit of Rs. 746.69 crores.
▶▶ As on Nov 2022 number of upgraded Health and Wellness centres are 8,637 of
which 6,106 are Rural Sub-centres, 2,166 are Rural PHCs and 365 Urban Health
Centres.
▶▶ Manochaitanya Program (Tuesday Clinic) program is a unique initiative of the
State. Psychiatrists from District Mental Health Program/ District Hospital/ Medical
College/ Private Psychiatrists visit taluk hospitals on selected Tuesdays to identify
and treat mentally ill patients. This program has been implemented in all taluks of
the state.

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 EXECUTIVE SUMMARY 13

▶▶ e-hospital program is operational in 123 Taluk Hospitals, 27 Community Health

Centres, 217 Primary Health Centers and 5 MCH Hospitals.
▶▶ Covid 19 Vaccination – Around 6000 Vaccination Centers are functioning daily in
the state. So far, a total of 12.04 crore doses have been administered to the eligible,
achieving 100% progress.
▶▶ Total enrolment in the State in 1 to 10 standards have marginally increased from
103.13 lakh in 2018-19 to 106.23 lakh in 2022-23.
▶▶ During the 2022-23, GER and NER for lower primary are 103.73 and 99.16 respectively
and at higher primary, GER and NER are 102.26 and, 87.55 respectively.
▶▶ During 2022-23 Drop-out Rates in Lower Primary and Higher Primary are 0.09%
and 0.49%, respectively. Samagra Shikshana-Karnataka (SSK) had identified 4,245
(6 to 14 years) drop-out children in State.
▶▶ Higher Primary Schools are being upgraded to include class 8, wherever there are
no High Schools within 3 kms. A total of 7817 HPS has been upgraded.
▶▶ About 98.86% of elementary schools possess own buildings and remaining are
operating in rent free or rented building.
▶▶ Teacher-Pupil ratio is satisfactory in Government schools. The average PTR being
1:25 at the elementary stage. The State has adopted a policy to rationalize teacher
deployment to correct such imbalances.
▶▶ “e-Sarvajanika Granthalaya” app is provided for public to view the digital library
services through mobile.
▶▶ E-Contents are localized, translated, and uploading to DIKSHA portal with the help
of trained teachers. Till today 29,581 e-resources are provided to use.
▶▶ Reservation in education and employment for Schedule Caste has been increased
from 15% to 17% to enable them to get more opportunities. Similarly, it has been
increased from 3% to 7% to Scheduled Tribes.
▶▶ 3,58,425 Unique Disability Identity Cards for the disabled (UDID) were issued as
against 6,84,542
▶▶ 5,090 Braille books are printed at Government Braille Printing Press, Mysore and
supplied to visual impairment students.

12. GOOD GOVERNANCE PRACTICES IN KARNATAKA

▶▶ Karnataka’s Good Governance Index score is 5.11 in 2020-21 as compared to 5.10

in 2019-20 with an improvement shown in Agriculture & Allied Sector, Public
Infrastructure & Utilities and Social Welfare & Development.
▶▶ Towards the good governance of providing transparency, efficiency and integrated
planning in policy formulation and decision making, Karnataka Government has
taken up several dynamic and innovative initiatives like Karnataka State Wide
Area Network , e-Procurement, Karnataka State Data Centre, Security Operation
Centre for SDC, Unique Identification Numbers, Karnataka Resident Data Hub,

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 14 EXECUTIVE SUMMARY

Digilocker, e-janma, e-Office, Kannada Computing, State Scholarship Portal,

Direct Benefit Transfer, Kutumba, Karnataka Open Data Initiative, MyGov, RTI
Online, Crop Survey, Karnataka State Web Portal, KAVERI Property Registration
using Blockchain, Suvidha, National Academic Depository, Mahiti Kanaja, FRUITS,
Integrated Public Grievances Redressal System, E-Sahamathi, Sakala, Bhoomi and
K-GIS.
▶▶ During 2022-23, to KKRDB Rs. 1,500 Crore each is provided for mico plan and mega
projects, totalling to Rs. 3,000 Crore.
▶▶ Karnataka State Policy and Planning Board has been recently reconstituted on
the lines of NITI Aayog as State Institute for Transformation of Karnataka (SITK)
to focus on Decentralized Planning, Strategy formulation and Outcome based
Evaluation for effective implementation of outcome-based budgeting.
▶▶ On the lines of Development Monitoring and Evaluation Office (DMEO) of NITI
Aayog, Karnataka Evaluation Authority (KEA) is renamed as Karnataka Monitoring
and Evaluation Authority (KMEA) to promote monitoring and evaluation ecosystem
in the state and take up all evaluations of schemes with a budget of more than 100
crores once in plan period.
▶▶ Recommendations from studies of Karnataka Evaluation Authority has provided
useful insights to the departments for mid-course policy corrections and improving
the efficacy of the schemes apart from policy formulation.
▶▶ Visualize and showcase the success of government achievements through success
stories to motivate other citizens to make use of government initiatives.
▶▶ Institutionalization of Digital Dialogue Meetings at the grassroots level in
supporting decentralized planning and program implementation
▶▶ There is a need for digital infrastructure for the successful implementation of
government schemes.
WAY FORWARD FOR ACHIEVING $1 TRILLION GDP VISION FOR KARNATAKA

Government Schemes will be aligned with the NABARD’s priority sector credit target of
Rs. 3.59 lakh crores to the tune of 1.79 lakh crore in agriculture and allied activities, Rs.
1.35 Lakh crore in MSMEs and Rs.0.45 lakh crore in export, education, housing, renewable
energy, and social infrastructure.

▶▶ Agriculture: Encouraging agri-tech startups, agro-processing, multiple cropping,

micro irrigation expansion, encashment of carbon credits, silvi horticulture, etc.,
will increase the growth of Agriculture sector from 14.8% to 18.8%. Monetizing
4 lakh hectares of cultivable wasteland and 47 lakh MTs of marketable surplus
of fruits and vegetables will be ensured by setting up end to end value chain
connectivity to reduce losses and increase exports. Agriculture GDP is forecasted
to grow from 3.09 lakh crores to 16.5 lakh crores by 2032.
▶▶ Industry: 15,000 acres of available industrial land (across Vijayapura, Ballari,
Dharwad, Shivamogga, Hassan, Ramanagara, Tumakuru, Chikkaballapur districts)
would be optimally utilised besides private sub-sector specific ‘plug and play’
industrial clusters pushing MSME growth Beyond Bengaluru and generating

Karnataka Economic Survey 2022-23

 EXECUTIVE SUMMARY 15

employment of 45-50 Lakhs. New Education Policy will be leveraged to inculcate

skilling from secondary education onwards to produce industry demand ready
workforce besides incentivizing R&D incubation by setting up venture funds and
NAIN (New Age Innovation Network) centres to encourage students, research
scholars and alumni to boost the GDP. All these initiatives will increase the growth
in Industry from 9.1% to 17.6% and GDP is forecasted to grow from 4.29 lakh crores
to 21.4 lakh crores by 2032.
▶▶ Services: The vast tourism potential of Karnataka such as Coastal, Wildlife, Heritage,
Adventure, Medical / Wellness, Religious / Spiritual, Eco Tourism, Agri-Tourism and
Rural Tourism will be developed by providing relaxation to the ‘land use change
policy’. Growth led through e-mobility, Digihealth, Agritech, Fintech, Edutech and
Gig Economy will be leveraged for the growth of service sector. All these initiatives
will increase the growth in service sector from 13.4% to 16% and GDP is forecasted
to grow from 13.14 lakh crores to 61.6 lakh crores by 2032.
GOVERNANCE REFORMS

▶▶ Karnataka aims to strengthen its decentralized governance to make District

as a fulcrum of growth and development by strengthening capacity building,
infrastructure support and delegation of powers.

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16 EXECUTIVE SUMMARY

Karnataka Economic Survey 2022-23

 1
CHA PT E R

STATE INCOME AND PRICES

1.1 INTRODUCTION

Karnataka is a state of diverse cultures and languages and the economic and social
scenario within the State, in many ways, mirrors the scenario prevalent in the country
itself. Located in the southern part of India, along its northern borders lie the states of
Maharashtra and Goa; Andhra Pradesh and Telangana to the east; Tamil Nadu and Kerala
to the south, while the Arabian Sea forms the western boundary.

Karnataka has an area of 1,91,791 sq. kms. which constitutes 5.83 per cent of the total
geographical area and population of 6,10,95,297 accounts for 5.05 per cent of country’s
populationin 2011. Karnataka is, in terms of population, the ninth largest state among
India’s 28 major states and 8 union territories. The state is becoming steadily urbanised.
In terms of urbanization, the state has witnessed an increase of 4.68 per cent in the
proportion of urban population in the last decade. 61.33 per cent are rural residents and
38.67 per cent are urban residents. It has a larger proportion of its population living in
urban areas, than the average for the country as a whole.

This chapter analyses Karnataka’s economic growth in terms of changes in Aggregate

and Per Capita State Income including stability of prices in the indices of wholesale as
well as retail prices in the entire state. In addition, this chapter also provides an analysis
of District Income Estimates along with related Inter-District Variations.

1.2 GROSS STATE DOMESTIC PRODUCT

Gross State Domestic Product (GSDP) is the most important indicator in measuring
economic growth of the State. It gives an overall picture of the state of the economy.
This would enable the policy makers, administrators and planners for proper formulation
and appraisal of plans for balanced economic development. Analysis of this indicator
at aggregate and disaggregated levels leads to the insights of patterns and sources of
growth.

The State Domestic Product is defined as the “aggregate of the economic value of all
goods and services produced within the geographical boundaries of the State, counted
without duplication, for a specified period of time” by convention: a financial year.

1.3 GROSS STATE DOMESTIC PRODUCT - OVER-VIEW FOR 2022-23

Karnataka has released the GSDP Advance Estimates for the year 2022-23. In accordance
to the estimates, the GSDP is estimated to be Rs.22,41,368 crore and is anticipated to
grow at 14.2% at current prices. At constant (2011-12) prices, GSDP is Rs.13,26,319 crore with
an expected growth of 7.9%.

1.4 COMPARISON OF GROSS STATE DOMESTIC PRODUCT AND GROSS DOMESTIC

PRODUCT

In 2022-23, the GSDP of Karnataka is anticipated to grow at 7.9% whereas the GDP at
national level is 7.0% at constant(2011-12) prices. At current prices,the GSDP is anticipated
to reach Rs.22,41,368 crore with a growth of 14.2% and GDP is likely to attain a level of
 State Income and Prices
18

Rs.2,73,07,751 crore with a growth rate of 15.4%. The share of Karnataka’s GSDP in All India
GDP is 8.2% during 2022-23.

The GSDP and GDP at current and constant (2011-12) prices from 2011-12 to 2022-23
are presented in Table 1.1 & 1.2. It can be clearly seen that except 2017-18 and 2022-23
Karnataka’s growth rate at current prices has always been higher than all India growth
rate. While at constant prices, State’s growth rate is higher than all India except 2014-15
and 2018-19.

Table 1.1: Annual Growth of GSDP and GDP at Current Prices

Difference
GSDP Growth Rate GDP Growth Rate
Year in Growth
(Rs. crore) of GSDP (%) (Rs. crore) of GDP (%)
Rates
2011-12 6,06,010 - 87,36,329 - -
2012-13 6,95,413 14.8 99,44,013 13.8 1.0
2013-14 8,16,666 17.4 1,12,33,522 13 4.4
2014-15 9,13,923 11.9 1,24,67,959 11 0.9
2015-16 10,45,168 14.4 1,37,71,875 10.5 3.9
2016-17 12,07,608 15.5 1,53,91,668 11.8 3.7
2017-18 13,33,240 10.4 1,70,90,042 11 -0.6
2018-19 14,79,391 11 1,88,99,668 10.6 0.4
2019-20 16,11,134 8.9 2,00,74,855 6.2 2.7
2020-21 16,25,073 0.9 1,98,00,914 -1.4 2.3
2021-22 19,62,725 20.8 2,36,64,638 19.5 1.3
2022-23 22,41,368 14.2 2,73,07,751 15.4 -1.2
Source: 1. Directorate of Economics and Statistics, Government of Karnataka.
2. National Statistical Office, Government of India. * As per First Advance Estimates

Table 1.2: Annual Growth of GSDP and GDP at Constant (2011-12) Prices

Difference
GSDP Growth Rate GDP Growth Rate
Year in Growth
(Rs. crore) of GSDP (%) (Rs. crore) of GDP (%)
Rates
2011-12 6,06,010 - 87,36,329 - -
2012-13 6,43,033 6.1 92,13,017 5.5 0.6
2013-14 7,04,466 9.6 98,01,370 6.4 3.2
2014-15 7,48,429 6.2 1,05,27,674 7.4 -1.2
2015-16 8,31,330 11.1 1,13,69,494 8 3.1
2016-17 9,41,774 13.3 1,23,08,193 8.3 5.0
2017-18 10,19,708 8.3 1,31,44,583 6.8 1.5
2018-19 10,85,101 6.4 1,39,92,915 6.5 -0.1
2019-20 11,48,806 5.9 1,45,15,958 3.7 2.2

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 State Income and Prices
19

Difference
GSDP Growth Rate GDP Growth Rate
Year in Growth
(Rs. crore) of GSDP (%) (Rs. crore) of GDP (%)
Rates
2020-21 11,08,212 -3.5 1,35,58,473 -6.6 3.1
2021-22 12,29,713 11 1,47,35,516 8.7 2.3
2022-23 13,26,319 7.9 1,57,60,363 7 0.9

Source: 1. Directorate of Economics and Statistics, Government of Karnataka.

2. National Statistical Office, Government of India. * As per First Advance Estimates

1.5 COMPARISON BETWEEN ADVANCE ESTIMATES OF 2022-23 AND FIRST REVISED

ESTIMATES OF 2021-22

The Gross State Domestic Product of Karnataka at constant (2011-12) prices for the year
2022-23 is anticipated to grow by 7.9%.The GSVA growth rate of agriculture sector has
been estimated to be 5.5% in 2022-23 as against the growth of 8.7% in 2021-22. The industry
sector (comprising mining & quarrying, manufacturing, construction and electricity,
gas & water supply) is expected to grow by 5.1% in 2022-23 against a growth of 10.3%
during 2021-22. Service sector is expected to grow by 9.2% during 2022-23 compared to
growth of 10.3% during 2021-22. Whereas, the First Advance Estimates of All India Gross
Domestic Product (GDP) at constant (2011-12) prices for the year 2022-23 is expected to
grow at 7.0%. The sectoral growth rate of Agriculture, Industry and Services at all India
level is anticipated to grow at 3.5%, 4.1% and 9.1% respectively. The comparative table of
sectoral growth rates of GSDP for 2021-22 and 2022-23 are presented in Table 1.3. It is
observed that relevant best practices of performer states to be adopted in Karnataka for
achieving higher growth trajectory.

Table 1.3: Sectoral Growth Rates of GSDP at Constant (2011-12) Prices (Percent)

Sl. 2021-22 2022-23

Sector Best State
No. F.R.E. A.E.
1 Crops 6.0 16.3 3.2
(Maharastra)
2 Livestock 10.0 17.6 (Maharastra) 10.0
3 Forestry and Logging 0.1 21.5 (Telangana) 2.2
4 Fishing 89.9 25.9 (AP) 16.6
Agriculture and 8.7 5.5
Allied Sector
5 Mining and Quarrying 29.0 86.8 (UP) 4.8
6 Manufacturing 11.1 42.1 (Odisha) 4.9
7 Electricity, Gas, Watersupply & 1.5 16.3 (AP) 2.2
Remediation Services
8 Construction 7.9 26.8 (AP) 6.6

Karnataka Economic Survey 2022-23

 State Income and Prices
20

Sl. 2021-22 2022-23

Sector Best State
No. F.R.E. A.E.
Industry Sector 10.3 5.1
9 Trade & Repair Services 16.0 41.5 (Telangana) 18.8
10 Hotels and Restaurants 86.7 74.6 (TN) 18.5
11 Railways 11.1 21.1 (Rajasthan) 13.7
12 Road transport 1.9 19.4 (AP) 2.8
13 Water transport -3.2 4.2
14 Air transport 95.6 20.3
15 Services incidental to 46.3 20.1
transport
16 Storage 7.7 84.4(AP) 7.3
17 Communication 9.4 24.4 (AP) 17.2
18 Financial Services 4.2 21.6 (AP) 6.4
19 Real Estate, Professional 6.3 21.5 8.7
Services & Ownership of (Odisha)
Dwellings
a) Computer related Services 5.4 9.5
b) Real Estate & Other 5.4 9.6
Professional Services
c) Ownership of Dwellings 11.3 3.9
20 Public Administration 15.7 18.6 (Odisha) 1.9
21 Other services 28.9 18.3 (Telangana ) 6.1
Services Sector 10.3 9.2
Total GSVA at Basic Prices 10.1 7.7
Product Tax 13.8 6.2
Product Subsidies -6.7 -9.7
Total GSDP at Market Prices 11.0 7.9

A.E.: Advance Estimates, F.R.E.: First Revised Estimates

Source: Directorate of Economics and Statistics, Government of Karnataka

1.6 NET STATE DOMESTIC PRODUCT

The estimates of Net State Domestic Product (NSDP) are derived from the Gross
State Domestic Product (GSDP) by deducting Consumption of Fixed Capital (CFC) or
Depreciation. For the year 2022-23, at current prices, NSVA growth of agriculture & allied
activities, industry and service sectors are expected at 11.9%, 10.9% and 15.6% respectively
which has lead the NSDP to Rs.20,36,748 crore, showing a growth of 14.3% against 20.9%
in 2021-22. Similarly, at constant (2011-12) prices the NSDP is estimated at Rs.11,90,851 crore
showing a growth of 7.9% (Table 1.4).The NSVA growth of Agriculture & allied activities,
Industry and Service sectors are expected to be 5.6%, 5.1% and 9.3% respectively.

Karnataka Economic Survey 2022-23

 State Income and Prices
21

Table 1.4 : NSDP at Current and Constant (2011-12) Prices

NSDP at Current Prices NSDP at Constant (2011-12) Prices

Sectors
2021-22 F.R.E. 2022-23 A.E 2021-22 F.R.E. 2022-23 A.E
Agriculture 2,61,343 2,92,365 1,22,088 1,28,932
Industry 3,38,011 3,74,741 2,37,857 2,50,088
Services 10,21,736 11,81,288 6,04,515 6,60,670
NSVA at Basic Price 16,21,090 18,48,394 9,64,460 10,39,690
Product Tax 1,97,954 2,23,636 1,61,360 1,71,354
Product Subsidies 36,923 35,278 22,353 20,193
NSDP at Market Price 17,82,121 20,36,748 11,03,468 11,90,851
Source: Directorate of Economics and Statistics, Government of Karnataka

Figure 1.1 shows the GSDP, NSDP and CFC at current prices from 2011-12 to 2022-23. The
difference in GSDP and NSDP indicates the extent of consumption of fixed capital or
depreciation.

Figure 1.1: GSDP, NSDP and CFC at current prices

1.7 SECTORAL COMPOSITION OF GROSS STATE DOMESTIC PRODUCT

The contribution of Agriculture sector to the overall GSDP saw a marginal decrease from
15.36% to 15.08% in 2022-23 against 2021-22. Industry sector saw a marginal decrease from
21.48% to 20.88% in 2022-23 against 2021-22. The services sector,a largest component
of GSDP saw a marginal increase from 63.16% in 2021-22 to 64.04% in 2022-23. The
contribution of ‘Real estate, Professional Services & Ownership of Dwellings’ is highest
with (34.31%) in 2022-23 followed by Computer related services and R&D (24.34%)’,
‘Manufacturing’ (13.28), ‘Crops (9.80%)’ and ‘Trade and Repair Services (9.52%).

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The sectoral composition and department (probable) wise GSDP in 2021-22 and
2022-23 at current prices is given in Table 1.5. The sectoral composition of GSDP is
shown in Figure 1.2 for primary, secondary and tertiary sectors. The details of Gross State
Domestic Product estimates from 2016-17 to 2022-23 are presented in Appendix 1.1 to 1.4.

Table 1.5: Sectoral shares of GSDP at Current Prices (Percent)

Sl. No Sector ( Department) 2021-22 F.R.E. 2022-23 A.E.

1 Crops (Agriculture, Horticulture) 10.14 9.80
2 Livestock (Animal Husbandry) 3.67 3.76
3 Forestry and Logging (Forest) 0.98 0.85
4 Fishing (Fisheries) 0.57 0.67
Agriculture and Allied Sector 15.36 15.08
5 Mining and Quarrying (Mines and Geology) 1.11 1.06
6 Manufacturing (Commerce and Industry) 13.74 13.28
7 Electricity, Gas, Water supply & Remediation 1.39 1.33
Services (Energy)
8 Construction (Public Works Department) 5.24 5.21
Industry Sector 21.48 20.88
9 Trade & Repair Services 8.73 9.52
10 Hotels and Restaurants (Tourism) 1.22 1.33
11 Railways (Railways) 0.26 0.28
12 Road Transport (Transport) 3.03 3.27
13 Water Transport (Ports and Inland waterways) 0.02 0.02
14 Air Transport 0.13 0.14
15 Services Incidental to Transport 0.07 0.08
16 Storage 0.10 0.10
17 Communication 1.29 1.38
18 Financial Services 4.64 4.66
19 Real estate, Ownership of Dwellings & 34.36 34.31
Professional Services
a) Computer related Services (IT &BT) 24.24 24.34
b) Real Estate & Other Professional Services 4.40 4.42
c) Ownership of Dwellings 5.72 5.55
20 Public Administration (General Governance) 2.75 2.57
21 Other services ( Education and Medical) 6.56 6.38
Services Sector 63.16 64.04
Total GSVA at Basic Prices 100.00 100.00
A.E.: Advance Estimates, F.R.E.: First Revised Estimates
Source: Directorate of Economics and Statistics, Government of Karnataka

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Figure 1.2: Sectoral composition of GSVA at Current Prices

70.0 0
63.16 64.04

60.00

50.00

40.00

30.00
20.37 19.82
20.00 16.47 16.14

10.0 0

0.00
2021-222 022-23

Primary Secondary Tertiary

1.8 PER CAPITA INCOME

Per capita income is estimated by dividing NSDP at current prices with mid-financial
year projected population (as on 1st October). Per Capita State Income (i.e. per capita
NSDP) of Karnataka at current prices is estimated to be Rs.3,01,673 showing a rise of 13.6%
during 2022-23, as against Rs.2,65,623 in 2021-22. Karnataka’s per capita income is higher
than All India per capita income. Figure 1.3 provides comparison of per capita income of
Karnataka and All India from 2011-12 to 2022-23. It is significant to note that the per capita
income has shown a steep increase after 2020-21, indicating gradual recovery of state’s
economy after the economic downturn due to covid pandemic.

Figure 1.3: Comparison of Per Capita Income

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On comparison, the level of per capita state income at constant (2011-12) prices was
Rs.1,64,471 in 2021-22 and is expected to be Rs. 1,76,383 in the year 2022-23 with a growth
rate of 7.2%.

1.9 GROWTH OF NSDP AND PER CAPITA INCOME

Table 1.6 presents the growth of Net State Domestic Product and Per Capita Income of
the state over the years. CAGR shows incremental growth over time. The historical GSDP
data is presented in Appendix 1.5.

Table 1.6: Growth of NSDP at Market Price and Per Capita Income

NSDP at Current Per Capita

Year CAGR (%) CAGR (%)
Prices (Rs.Crore) Income (Rs.)
1960-61 692 - 296 -
1970-71 1,858 10.4 641 8.0
1980-81 5,587 11.6 1,520 9.0
1990-91 20,551 13.9 4,598 11.7
2000-01 96,348 16.7 18,344 14.8
2010-11 3,68,338 14.4 62,251 13.0
2020-21 (S.R.E.) 14,74,522 14.9 2,21,310 13.5
2021-22 (F.R.E.) 17,82,121 20.9 2,65,623 20.0
2022-23 (A.E.) 20,36,748 14.3 3,01,673 13.6
A.E.: Advance Estimates, F.R.E.: First Revised Estimates, S.R.E.: Second Revised Estimates
Source: Directorate of Economics and Statistics, Government of Karnataka

1.10 INTER STATE COMPARISON

The comparison of GSDP or State Income and per capita income of Karnataka for
2021-22 with selected States (for which data is available in MoSPI website) alongside All
India is presented in Table 1.7. Based on the rankings of states in the table, Karnataka
stands at 4th in per capita income and Karnataka is lower by 3% to Telangana.

Table 1.7: Comparison of State Income and Per Capita Income for the year 2021-22

Sl. State Income Per capita Ranking in Per

State
No. (Rs Crore) Income (Rs) Capita Income
1 Delhi 9,23,967 4,01,982 1
2 Telangana 11,48,115 2,75,443 2
3 Haryana 8,95,671 2,74,635 3
4 Karnataka 19,62,725 2,65,623 4
5 Tamil Nadu 20,65,436 2,41,131 5
6 Kerala 9,01,998 2,30,601 6
7 Puducherry 37,485 2,14,913 7

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Sl. State Income Per capita Ranking in Per

State
No. (Rs Crore) Income (Rs) Capita Income
8 Andhra Pradesh 12,01,736 2,07,771 8
9 Himachal Pradesh 1,75,173 2,01,854 9
10 Uttarakhand 2,53,832 1,96,282 10
11 Punjab 5,84,042 1,62,112 11
12 Rajasthan 11,96,137 1,35,218 12
13 Madhya Pradesh 11,69,004 1,24,685 13
14 Odisha 6,42,087 1,24,669 14
15 Jammu & Kashmir-U.T. 1,95,118 1,21,000 15
16 Jharkand 3,43,178 78,660 16
17 Uttar Pradesh 18,63,221 68,810 17
18 Bihar 6,75,448 49,470 18
All India 2,36,64,638 1,50,007
Source: 1. Karnataka: Directorate of Economics and Statistics, Government of Karnataka.
2. Rest of the States and all India: Central Statistical Office, Government of India.

1.11 DISTRICT INCOME

The District Domestic Product estimates are prepared on a provisional basis. The
database for the estimation is available for Primary sector only. In respect of Secondary
and Tertiary sectors, the State level estimates are allocated to districts with appropriate
available indicators and workforce under each sector as revealed during 6th Economic
Census. The Directorate of Economics and Statistics publishes important publications
namely “Karnataka at a Glance” and “District at a Glance” every year. This publication
provides approximately 2000 indicators of data, both static information (Population
Census, Agricultural Census and Livestock Census) and dynamic information
related to the programmes of various development departments in addition to
socio-economic and geographical information of the districts /taluks. This publication
provides district wise / taluk wise data needed for computation of Distirct Domestic
Product Estimates. This publication also provides maps of taluks and districts also. The
estimates of Gross District Domestic Product for 2021-22 with sectoral contribution for all
the 30 districts in the State are presented in Table 1.8.

Table 1.8 : Gross / Net District Domestic Product and Per Capita Income Year : 2021-22

(Rs. Lakh)

Gross
District
Sl.
District Agriculture Rank Industry Rank Services Rank Domestic Rank
No
Product
(GDDP)
1 Bangalore 0.5 30 16.8 25 82.6 1 69846083 1
Urban
2 Dakshina 13.1 28 38.5 1 48.5 25 11185925 2
Kannada

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Gross
District
Sl.
District Agriculture Rank Industry Rank Services Rank Domestic Rank
No
Product
(GDDP)
3 Belagavi 26.1 11 22.0 12 52.0 15 8240007 3
4 Tumakuru 23.4 17 29.4 4 47.2 26 7517733 4
5 Mysuru 19.4 23 17.6 23 63.1 3 6829719 5
6 Ballari 17.0 27 30.4 3 52.6 14 6648034 6
7 Shivamogga 28.5 9 21.5 13 50.0 20 5804071 7
8 Udupi 18.1 26 27.9 6 54.0 11 5250451 8
9 Mandya 20.0 22 22.0 11 58.0 7 4807951 9
10 Bagalkote 21.2 21 27.8 7 51.0 18 4699188 10
11 Chikkamagaluru 25.7 13 28.8 5 45.5 27 4692175 11
12 Hassan 24.2 16 16.1 27 59.8 6 4621771 12
13 Dharwad 10.4 29 24.8 10 64.8 2 4599906 13
14 Kalaburagi 25.5 14 20.8 14 53.7 12 4049998 14
15 Davanagere 35.3 2 20.0 18 44.7 28 3948871 15
16 Vijayapura 30.6 7 20.2 17 49.2 21 3905803 16
17 Bangalore Rural 32.7 6 26.2 9 41.1 29 3799736 17
18 Raichur 29.7 8 17.7 22 52.6 13 3490546 18
19 Uttara Kannada 22.3 18 19.9 20 57.8 8 3473296 19
20 Chitradurga 35.3 3 16.0 29 48.8 24 3455085 20
21 Kolar 21.9 19 26.9 8 51.2 17 3355957 21
22 Ramanagara 18.1 25 32.8 2 49.1 22 3012959 22
23 Haveri 25.9 12 16.5 26 57.6 9 2935242 23
24 Bidar 21.5 20 16.8 24 61.7 4 2844017 24
25 Chikkaballapur 28.1 10 20.3 16 51.6 16 2775668 25
26 Koppal 33.0 5 18.1 21 48.8 23 2413973 26
27 Chamarajanagar 24.2 15 20.5 15 55.3 10 2276867 27
28 Gadag 18.8 24 19.9 19 61.3 5 2061535 28
29 Yadagiri 33.9 4 16.1 28 50.1 19 2042312 29
30 Kodagu 49.8 1 12.1 30 38.1 30 1687660 30
State 15.4 21.5 63.2 196272540

It is evident from the table 1.8, that the districts which it shows higher growth in services
and industries will fare well with overall growth in DDP. The districts which are at very
lowest positions are well placed in Agriculture sector, however, due to less presence
of industries and services establishments, these districts fared poorly. Further due to
addition of new data items viz., Private Corporate part etc., and availability of new data
sources in computation of GSDP of the State, identification of suitable physical indicators
with respect to each sector to be allocated for the districts is in process. Because of data
limitations, it may not be very useful to analyse sector-wise district estimates between
any two given points of time as these estimates have not yet firmed up. Bangalore Urban
District stood first in the total District Income as well as per capita district income for

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the year 2021-22. Bengaluru Urban District contributes 35.6% to GSDP at current Prices
followed by Dakshina Kannada (5.7%), Belagavi (4.2%).

At constant (2011-12) prices, contribution of Belagavi district to the primary sector is

highest in 2021-22, due to a higher contribution in crop sector. Bengaluru Urban District
tops in secondary and tertiary sectors due to high concentration of major industries and
infrastructure facilities. Every district has a potential for growth in one or the other sector
which can be used by the district planning committees to support the NITI Aayog’s
aspirational programme “District as a Fulcrum of Development” to strengthen and
enhance the GDP. The per capita income (in rupees) at current prices for all 30 districts
for the year 2021-22 is presented in Figure 1.4.

Figure 1.4: District wise Per Capita Income (in rupees) for the year 2021-22

01

District income is also a measure of the level and growth of economic development
prevailing in the district level. It is a useful policy indicator to monitor the nature and
degree of inter-district variations as well as, disparities in the process of economic growth
at the State level. A simple statistical indicator of inter-district variations in the levels of

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district income is the coefficient of variation. Figure 1.5 shows these computed values
across the four divisions and at the State level.

Figure 1.5 : Inter-district variations of Gross District Income and Per Capita Income by
Divisions in Karnataka for 2021-22

Figure 1.5 indicates the variations in gross district and per capita district income among
the revenue regions (divisions) of the State.The highest variation is evident with respect
to Bengaluru division, if Bengaluru Urban District is included. Excluding Bengaluru
Urban district, these inter-district variations in district income and per capita district
income, get remarkably reduced at the division and State levels which is nothing but the
districts without Bangalore Urban is fairly developed across all the districts. The growing
inter-district variation is an important indicator and a source of broader inter-regional
disparities in the process of State’s economic development.However, a low coefficient of
variation as such, does not necessarily imply either a higher or a lower district economic
growth or regional disparity.

Figure 1.6: Division wise Per Capita Income

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It can be observed from Figure 1.6 that Kalaburgi revenue region (comprising Ballari,
Bidar, Kalaburgi, Koppal, Raichuru and Yadagiri districts), stood lowest in the per capita
income followed by Belagavi and Mysore divisions due to less presence of industries and
services sectors in these region. Hence there is a dire need for development of industries
and services in these regions through encouraging private investments.

1.11 PRICES

Price is one of the key indicators in the economic planning process. They provide an
economic mechanism by which goods and services are distributed among the consumers.
Changes in prices have a direct bearing on all sections of the society irrespective of their
level of living. Prices determine what goods are to be produced and in what quantities.
They also indicate the demand and supply of goods and services in the economy.
Thewholesale and retail Inflation can be measured in two ways viz., Wholesale Price
Index and Consumer Price Index

1.12 INFLATION

Inflation is an increase in the level of prices of goods and services over time. It is the
constant rise in the general level of prices where a unit of currency buys less than it did in
prior periods. It indicates the purchasing power of a Nation’s currency.

In India commonly used inflation indices are the Wholesale Price Index (WPI) and the
Consumer Price Index (CPI). As the name indicates the WPI measures Price at the
wholesale level and CPI at the consumer level. Beyond the basics, the number and types
of items included in the WPI and CPI basket differ and so does the weights given to these
items. Food has a larger weight in CPI than WPI, the CPIs are therefore more sensitive
to changes in prices of food items. Whereas the fuel group has a much higher weight in
WPI than CPIs.

During 2022-23, based on inflation rate of All India Wholesale Price Index (WPI) is
decreased to 0.13% in 8 (April-November) months. During the corresponding period
of previous year inflation rate was increased by 8.86%.

During 2022-23, based on inflation rate of All India level Consumer Price Index
(CPI) is increased to 3.76% in 8 (April-November) months. During the corresponding
period of previous year inflation rate was increased by 4.66%.

1.13 ALL INDIA WHOLESALE PRICE INDEX

Wholesale Price Index measures the average change in the prices of commodities for
bulk sale at the level of early stage of transactions. The index basket of the WPI covers
commodities in three major groups namely Primary Articles, Fuel and power and
manufactured products.

Wholesale Price Index is released by the Office of Economic Advisor (OEA), Department
of Industrial Policy and Promotion, Ministry of Commerce and Industry. The base year for
this index is 2011-12=100. The index basket of the present 2011-12 series has a total of 697
items including 117 items of Primary Articles, 16 items for Fuel and Power and 564 items
for Manufactured Products. WPI basket does not cover services.

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Wholesale Price Index is used to estimate inflation at the Wholesale transaction level. It
is also used for estimating GDP by Central Statistical Office (CSO). This index is released
every month at the National level.

During 2021-22 and 2022-23 Wholesale price index analysis given below.
oo During 2022-23, the Index of all commodities decreased from 152.3 in April
to 152.1 in November 2022, showing a decrease of 0.13%.
oo During 2021-22, the index of all commodities is increased from 132.0 in April
to 143.7 in November 2021, showing an increase of 8.86%.
oo The Annual rate of inflation, based on monthly WPI, stood at 5.85% for the
month of November 2022 (over November 2021)
During 2022-23 (April-November) Group-Wise changes in WPI are as follows.
oo Primary Articles (Weight 22.62), the index for this major group rose by 1.83%
in 8 months.
oo Fuel and Power (Weight 13.15), the index for this major group increased by
5.56% in 8 months.
oo Manufactured Products (Weight 64.23), the index for this major group
decreased by 2.21% in 8 months.

The details of annual all India wholesale price index from April to November for the
consecutive years 2020-21, 2021-22 and 2022-23 are presented in Appendix 1.7 and group
wise All-India Wholesale Price Index since 2015-16 are given in Appendix 1.8. The Figure
1.7 shows group wise changes in WPI.

Figure: 1.7 Group wise changes in WPI

1.14 Wholesale Price Index of Karnataka State for 33 Agricultural Commodities: This
index is useful to monitor the trends in prices at the first stage of commercial transaction
and to estimate the State Domestic Products. The main source of primary data for the
construction of this Index is (1) 40 Agricultural Produce Market Committees (APMCs) of

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Agricultural Marketing Department situated across the State, who compiles the prices of
agricultural commodities (2) Directorate of Sugar (3) Coffee, Tobacco and Spices Board.

During 2021-22 and 2022-23 (April-November) Wholesale Price index of Karnataka

State 33 agricultural commodities analysis given below.

oo During 2022-23, the Index of Wholesale price is decreased from 1658 in April to 1634
in November 2022, showing a decrease of 1.45% in 8 months
oo During 2021-22, the Index of Wholesale price is increased from 1385 in April to 1620
in November 2021, showing an increase of 16.97% in 8 months.
oo In 2022, November index is 1634 and compared to 2021 November index (1620) the
annual Index increased to 0.86%.
During 2022-23 (April-November) the statistics of Group-wise WPI is as follows.

oo During 2022, when compared to April to November, all commodities index is

decreased by 1.45%. The index of Cereals group index decreased by 12.01%, and
Gur and Sugar group index decreased by 0.95% whereas the index of Condiments
and Spices group increased by 11.45%, Pulses group index increased by 11.31%,
Miscellaneous group index increased by 4.07%, Oil seeds group index increased by
1.90% and the index of Fibre group remains constant.
oo During April to November 2022, the prices of Onion, Tobacco and Dry Chillies are
increased by 80%, 31.5% and 19.4% respectively. Whereas the prices of Cardamom,
Arecanut and Pepper are decreased by 14.9%, 7.8% and 7.6% respectively.

WPI numbers of agricultural commodities in Karnataka since 2011-12 are given in Appendix
1.9 and group wise index numbers for 2020-21, 2021-22 and 2022-23 are given in Appendix
1.10.The trend of WPI for 33 agricultural commodities in Karnataka for the year 2021-22
and 2022-23 are shown in Figure. 1.8. WPI is increasing at an increasing rate in 2021-22,
conversely stable during 2022-23 which is due government initiatives.

Figure. 1.8 Average Trend of WPI in Karnataka

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1.15 CONSUMER PRICE INDEX

Consumer Price Index is a measure of change in retail prices of goods and services
consumed by defined population group in a given area with reference to a base year.

Presently the consumer price indices compiled in India are CPI for Industrial workers
(CPI-IW), CPI for Agricultural Labourers (CPI-AL), CPI for Rural Labourers (CPI-RL) and
CPI for Rural and Urban (CPI–R& U). The first three indices are constructed and released
by the Labour Bureau, Shimla and the fourth by the Central Statistical Office (CSO), New
Delhi. In Karnataka, the Directorate of Economics & Statistics constructs and releases
only CPI-IW for 9 centres as state series every month.

Consumer price index is widely considered as a Barometer of inflation, a tool for

monitoring price stability. Also the Dearness allowance of Government employees and
wage contracts between labour and employer is based on this index.

1.16 CONSUMER PRICE INDEX FOR INDUSTRIAL WORKERS

The target group of CPI-IW is workers of factories, mining, plantations, motor transport,
docks, railways & electricity. This index is mainly used to determine the dearness
allowance for the employees in both the public and private sectors. At the National level,
from September 2020 the base year of CPI (IW) for Central series has been revised from
2001=100 to 2016=100. In this series CPI-IW is constructed for 88 selected industrially
developed centres across the country, out of which 7 centres namely Bengaluru,
Belagavi, Hubballi-Dharwad, Madikeri, Mysuru, Davanagere and Chikmagaluru based in
Karnataka. CPI-IW in April and November for the year 2020-21, 2021-22 and 2022-23 in
All India and Karnataka are presented in Appendex-1.11. The trend of all India CPI-IW of
2021-22 and 2022-23 is shown in Figure 1.9.

During 2020-21, 2021-22 and 2022-23, All India level consumer price Index for
industrial workers analysis given below.

oo All India level consumer price Index of November 2021 was 125.7 points,
corresponding period of this year (November 2022) the points moved to 132.5,
annual inflation rate is 5.41%. During 2021-22, index of November 2021 was
125.7 points, corresponding period of previous year (November 2020) the
index was 119.9 points, and annual inflation rate was 4.84%.
oo During 2022-23 April-November 8 month’s average index is 130.3 points,
compared to corresponding period of the previous year average index was
122.8 and inflation rate is 6.11%. During 2021-22 April-November 8 month’s
average index was 122.8 points, compared to corresponding period of the
previous year average index was 117.0 and inflation rate was 4.96%.

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Figure 1.9: All India Consumer Price Index

1.17 STATE CONSUMER PRICE INDEX FOR INDUSTRIAL WORKERS

In Karnataka, the Directorate of Economics & Statistics constructs CPI-IW for 9 centres
viz., Ballari, Bhadravathi, Dandeli, Kalaburagi, Hassan, Mandya, Mangaluru, Raichur and
Tumakuru. With effect from February 2022 the base year for the State series index has
been revised from 1987-88=100 to 2018=100. Even though revision of base year 2018=100
effected from February 2022 for State series, the previous years indices has been worked
out and presented in the related Appendices.

During 2022-23, among the 9 State series centers, General Index of Tumakuru and
Kalaburagi centres increased by 4.68% and 4.64% respectively. During 2022-23, the
General Index of Tumakuru centre is increased from 119.7 in April to 125.3 in November
2022 showing an increase of 4.68% and from April to November 8 months’ average is
123.4 points showing an increase of 6.84% compared to corresponding period of previous
year (115.5).

The details of the CPI-IW for All India and Karnataka are presented in Appendix 1.12, 1.13,
and 1.14.

1.18 CONSUMER PRICE INDEX FOR AGRICULTURAL LABOURERS

Consumer Price Index for Agricultural Labourers (CPI-AL) for 20 States, including
Karnataka, is being constructed every month by the Labour Bureau, Shimla based on
the information obtaining from the Field Operation Division of National Sample Survey
Office. This index is used for fixation and revision of minimum wages in agriculture sector.
The base year for this index is 1986-87=100.

The general index of Karnataka is increased by 3.69% in November 2022 over April 2022
as against an increase in index by 5.32% at all India level.

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During 2022-23 (upto November 2022), in Karnataka, the average general index has
increased to 1270 from 1234 during same period of 2021-22, thus showing an increase of
2.92%. At the all India level, the index was increased by 6.86%.

CPI-AL in April and November for the years 2020-21, 2021-22 and 2022-23 are presented in
Appendix 1.15. The CPI-AL at All India and Karnataka from 2011-12 are given in Appendix
1.16. The Food and General Index of Agricultural Labourers during 2022-23 is illustrated in
the Figure 1.10.

Figure. 1.10. Consumer Price Index of Agricultural Labourers

1.19 PRICE SITUATION IN RURAL AND URBAN KARNATAKA

Directorate of Economics & Statistics, Government of Karnataka, collects retail prices of a

basket of essential commodities from selected centres in rural and urban areas in order
to assess the price situation in the State. Rural retail prices are collected every month
and urban retail prices are collected every week for the construction of monthly Rural
Retail Price Index Numbers and Urban Retail Price Index Numbers. For both these index
numbers, with effect from February 2022 the base year has been revised from 1970=100
to 2018=100. These index numbers are based on un-weighted diagram and focuses on
broad price trends in rural and urban areas, to guide policy decisions.

(a) Price Situation in Urban Areas

Every week, retail prices of 26 important commodities are collected from 31urban centres
in the State in order to construct Urban Retail Price Index (URPI). During 2022-23 the
index was 130.70 in April 2022 rose to 137.30 in November 2022 showing an increase of
5.05%. The rise in index is attributed to the increase in prices of Dry Chillies (25.1%), Onion
(20%) and Gingelly Oil (12.8%).During 2022-23 (up to November 2022), the average URPI
(133.92) increased by 13.95% over the corresponding period of the previous year (117.52).

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(b) Price Situation in Rural Areas

For the construction of monthly Rural Retail Price Index (RRPI), the retail prices of 32
essential commodities are collected from 452 villages every month. During 2022-23, the
index in April 2022 decreased from 126.55 to 125.25 in November 2022 showing a decrease
of 1.03%. This decrease was mainly due to decrease in price of Groundnut Oil (-4.3%),
where as price of Dry Chillies increased to 32.2%. Upto November 2022, the average RRPI
was 125.03 showing an increase of 2.91% over the corresponding period of the previous
year (121.49).

The details of Urban and Rural Retail Price Index Numbers in Karnataka are given in
Appendix 1.17.

1.20 Way Forward

The Gross State Domestic Product (GSDP) is expected to achieve 7.9% growth during
2022-23 as compared to 11% during 2021-22.

oo A committee constituted by Planning Department under the chairmanship

of Additional Chief Secretary (Finance Department) ably assisted by FICCI in
collaboration with department secretaries, industry experts and external consultants
has recommended a set of initiatives to increase the growth rate at 16.8% to achieve
State GDP to $1Tn (99.5 Lakh Cr) by 2032.
oo Karnataka aims to strengthen its decentralized governance to make District as a
fulcrum of development by strengthening capacity building, infrastructure support
and delegation of powers.
oo Government has constituted an advisory committee on GSDP to review the
methodology, quality and consistency of input data used for the estimation of GSDP
and to recommend suitable measures for timely flow of data and data sources.
oo To increase the GSDP, the industrial policy 2020-25 envisages top position in
merchandise export in the next five years. Amended Industrial Facilitation Act and
brought in Affidavit Based Clearance System to promote investments in industrial
sector.
oo To increase the service sector contribution, Government has announced new IT policy
2020-25 with special focus on promoting IT beyond Bengaluru
oo One District-One Product initiative of Atmanirbhar will significantly increase the
agriculture GSDP
oo New Tourism Policy 2020-25 envisages avenues to promote private investments so as
to attract domestic and foreign tourists
oo Labour laws have been simplified by allowing registration / renewal of licence under
the Factories Act, up to 15 years, at a time. Notification has been issued, allowing
women workers to work in factories, round the clock and the total hours of overtime
work, per quarter, has been increased from 75 to 125 hours.

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Appendix 1.1 GROSS STATE DOMESTIC PRODUCT - AT CURRENT PRICES (Rs. Crore)

Sl. 2020-21 2021-22 2022-23

Industry 2016-17 2017-18 2018-19 2019-20
No SRE FRE AE
1 Crops 82116 108777 105527 121636 150073 182665 201162
2 Livestock 22873 26308 31685 42512 56707 66190 77157
3 Forestry and Logging 9692 8754 10418 13360 14673 17631 17531
4 Fishing 4380 6195 4868 5347 5294 10311 13732
5 Mining and Quarrying 6791 9021 8968 8746 10130 19925 21860
6 Manufacturing 182184 191252 211302 200084 199601 247510 272662
Electricity, Gas,
7 Water supply and 15228 18153 21158 22774 23050 24994 27251
Remediation Services
8 Construction 64317 71213 82047 83243 78334 94485 106948
Trade and Repair
9 99617 115371 138298 152954 126786 157234 195522
Services
10 Hotel and Restaurants 16267 18852 22414 23556 10937 21891 27222
11 Railways 2699 3025 3108 3758 3813 4694 5837
12 Road Transport 40571 42734 47055 55165 43000 54674 67132
13 Water Transport 297 318 416 375 375 402 433
14 Air Transport 2076 2154 1337 2324 1083 2350 2922
Services Incidental to
15 1000 1037 1211 1241 774 1256 1559
Transport
16 Storage 417 432 1630 1591 1605 1843 2064
17 Communication 15576 14436 15657 17733 19257 23228 28263
18 Financial Services 51888 55049 61539 66271 74423 83575 95621
Real estate,Ownership
19 of Dwellings and 369000 398374 448553 509934 545993 619034 704316
Professional Services
a) Computer related
249370 265615 304494 354542 388956 436797 499751
Services
b) Other Professional
53983 60623 63086 71868 70568 79248 90670
Services
c) Ownership of
65647 72136 80972 83524 86468 102989 113896
Dwellings
20 Public Administration 25875 27875 34648 38100 40368 49585 52799
21 Other Services 70531 79842 86880 101442 87395 118218 131023
Total GSVA at Basic
1083394 1199172 1338719 1472147 1493668 1801695 2053015
Prices
Product Taxes 146461 156607 165616 166975 167552 197954 223632
Product Subsidies 22248 22539 24943 27988 36147 36923 35278
GSDP at Market
1207608 1333240 1479391 1611134 1625073 1962725 2241368
Prices
Population ('000) 64900 65057 65580 66104 66627 67092 67515
Per Capita GSDP (Rs.) 186072 204934 225586 243727 243906 292542 331981
Primary Sector 125852 159055 161466 191602 236876 296722 331443
Secondary Sector 261729 280618 314506 306101 300985 366989 406860
Tertiary Sector 695814 759499 862747 974444 955807 1137984 1314711
Total GSVA at Basic
1083394 1199172 1338719 1472147 1493668 1801695 2053015
Prices
I.Agriculture 119060 150034 152498 182856 226747 276797 309583
II.Industry 268520 289639 323474 314847 311115 386915 428721
III.Services 695814 759499 862747 974444 955807 1137984 1314711
Total GSVA at Basic
1083394 1199172 1338719 1472147 1493668 1801695 2053015
Prices

AE : Advance Estimates, FRE : First Revised Estimates, SRE : Second Revised Estimates,TRE : Third Revised
Estimates

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Appendix 1.2 GROSS STATE DOMESTIC PRODUCT - AT CONSTANT (2011-12) PRICES (Rs. Crore)

Sl. 2021-22 2022-23

Industry 2016-17 2017-18 2018-19 2019-20 2020-21 SRE
No FRE AE
1 Crops 49272 63865 57387 66745 75972 80539 83107
2 Livestock 16360 17568 19880 24725 31249 34373 37813
3 Forestry and Logging 6079 6052 7362 8947 9093 9104 9308
4 Fishing 2812 3441 3029 3141 2988 5674 6614
5 Mining and Quarrying 8500 8371 7776 8123 8605 11098 11633
6 Manufacturing 166462 169137 179874 169723 164818 183132 192065
Electricity, Gas,
7 Water supply and 11747 13529 15169 16600 17666 17933 18319
Remediation Services
8 Construction 55800 58107 62955 62621 57363 61878 65938
Trade and Repair
9 73604 83300 95199 101635 78128 90639 107660
Services
10 Hotel and Restaurants 11968 13569 15388 15615 6686 12484 14797
11 Railways 2076 2280 2297 2283 1871 2079 2363
12 Road Transport 35876 38353 41624 51045 50179 51120 52533
13 Water Transport 242 262 332 295 261 252 263
14 Air Transport 1695 1773 1068 1829 754 1475 1775
Services Incidental to
15 817 853 967 977 539 788 947
Transport
16 Storage 311 313 1128 1062 997 1074 1152
17 Communication 12758 11850 12431 13860 13381 14643 17167
18 Financial Services 48138 47403 49541 50616 56403 58792 62539
Real estate,Ownership
19 of Dwellings and 270892 283920 303229 332927 334780 355713 386543
Professional Services
a) Computer related
185493 192776 210509 236517 241636 254599 278836
Services
b) Other Professional
40356 44229 43980 48341 44000 46398 50846
Services
c) Ownership of
45043 46916 48740 48069 49144 54716 56861
Dwellings
20 Public Administration 19930 20934 24862 26420 26485 30639 31235
21 Other Services 49858 54875 56551 63659 52207 67277 71386
Total GSVA at Basic
845196 899755 958049 1022847 990427 1090705 1175159
Prices
Product Taxes 113935 136865 144902 145405 141754 161360 171354
Product Subsidies 17357 16912 17851 19446 23969 22353 20193
GSDP at Market Prices 941774 1019708 1085101 1148806 1108212 1229713 1326319
Population ('000) 64900 65057 65580 66104 66627 67092 67515
Per Capita GSDP (Rs.) 145112 156741 165462 173788 166331 183288 196448
Primary Sector 83023 99296 95434 111681 127908 140788 148476
Secondary Sector 234008 240773 257998 248943 239848 262943 276323
Tertiary Sector 528164 559685 604617 662223 622671 686974 750361
Total GSVA at Basic
845196 899755 958049 1022847 990427 1090705 1175159
Prices
I.Agriculture 74523 90925 87658 103558 119302 129690 136842
II.Industry 242508 249144 265774 257066 248453 274041 287956
III.Services 528164 559685 604617 662223 622671 686974 750361

Total GSVA at Basic

845196 899755 958049 1022847 990427 1090705 1175159
Prices

AE : Advance Estimates, FRE : First Revised Estimates, SRE : Second Revised Estimates,TRE : Third Revised
Estimates

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Appendix 1.3 NET STATE DOMESTIC PRODUCT -- AT CURRENT PRICES (Rs. Crore)

Sl. 2020-21 2021-22

Industry 2016-17 2017-18 2018-19 2019-20 2022-23 AE
No SRE FRE
1 Crops 73792 99854 96000 111190 138635 168743 185831
2 Livestock 22595 26003 31337 42082 56168 65562 76424
3 Forestry and Logging 9604 8669 10323 13251 14553 17487 17388
4 Fishing 4023 5743 4523 4954 4905 9552 12722
5 Mining and Quarrying 5703 7569 7564 7209 8349 16423 18018
6 Manufacturing 162562 170227 188034 175153 174730 216669 238687
7 Electricity, Gas, 10148 12596 14385 15793 15984 17332 18897
Water supply and
Remediation Services
8 Construction 60373 66760 76620 77165 72614 87586 99139
9 Trade and Repair 96167 110483 133487 147688 122677 151890 188876
Services
10 Hotel and Restaurants 15188 17728 21022 22086 9790 20400 25368
11 Railways 1745 2012 1974 2547 2486 3061 3807
12 Road Transport 37453 39365 42703 50220 39216 49765 61105
13 Water Transport 206 226 323 293 312 321 333
14 Air Transport 1749 1809 945 1641 560 1671 2088
15 Services Incidental to 869 893 1023 1054 631 1070 1330
Transport
16 Storage 351 363 1495 1445 1457 1673 1874
17 Communication 11698 10013 10136 11316 12288 14823 18036
18 Financial Services 50750 53782 60103 64669 72624 81556 93310
19 Real estate,Ownership 327627 345756 394950 449799 481605 546033 621258
of Dwellings and
Professional Services
a) Computer related 221410 230532 268107 312732 343087 385287 440816
Services
b) Other Professional 47930 52616 55547 63393 62246 69902 79977
Services
c) Ownership of 58287 62608 71296 73674 76271 90844 100464
Dwellings
20 Public Administration 20936 22857 28617 31684 32958 40484 43107
21 Other Services 64883 72243 79761 93524 80574 108990 120796
Total GSVA at Basic 978423 1074951 1205326 1324762 1343117 1621090 1848394
Prices
Product Taxes 146461 156607 165616 166975 167552 197954 223632
Product Subsidies 22248 22539 24943 27988 36147 36923 35278
GSDP at Market Prices 1102636 1209019 1345999 1463749 1474522 1782121 2036748
Population ('000) 64900 65057 65580 66104 66627 67092 67515
Per Capita GSDP (Rs.) 169898 185840 205245 221431 221310 265623 301673
Primary Sector 115717 147838 149748 178686 222610 277767 310383
Secondary Sector 233083 249583 279039 268110 263328 321587 356723
Tertiary Sector 629623 677531 776539 877966 857179 1021736 1181288
Total GSVA at Basic 978423 1074951 1205326 1324762 1343117 1621090 1848394
Prices
I.Agriculture 110014 140268 142183 171477 214261 261343 292365
II.Industry 238786 257152 286604 275319 271678 338011 374741
III.Services 629623 677531 776539 877966 857179 1021736 1181288
Total GSVA at Basic 978423 1074951 1205326 1324762 1343117 1621090 1848394
Prices

AE : Advance Estimates, FRE : First Revised Estimates, SRE : Second Revised Estimates,TRE : Third Revised
Estimates

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Appendix 1.4 NET STATE DOMESTIC PRODUCT - AT CONSTANT (2011-12) PRICES (Rs. Crore)

Sl. 2020-21 2021-22 2022-23

Industry 2016-17 2017-18 2018-19 2019-20
No SRE FRE AE
1 Crops 43039 57343 50620 61381 69907 74066 76472
2 Livestock 16116 17316 19610 24394 30845 33928 37324
3 Forestry and Logging 6003 5982 7289 8863 9008 9019 9221
4 Fishing 2495 3038 2729 2809 2672 5074 5915
5 Mining and Quarrying 7603 7208 6685 6961 7375 9511 9970
6 Manufacturing 148873 150690 160140 148778 144479 160533 168364
7 Electricity, Gas, Water 7195 8670 9434 10695 11382 11553 11802
supply and Remediation
Services
8 Construction 52037 53878 57948 56935 52155 56260 59952
9 Trade and Repair 70547 79151 91299 97406 75069 86920 103244
Services
10 Hotel and Restaurants 11014 12618 14269 14441 5837 11451 13570
11 Railways 1258 1439 1395 1340 864 960 1091
12 Road Transport 33017 35337 37795 46906 46224 47020 48289
13 Water Transport 159 179 250 227 195 185 193
14 Air Transport 1398 1468 727 1255 206 906 1186
15 Services Incidental to 703 732 813 824 393 637 790
Transport
16 Storage 252 256 1020 947 889 958 1027
17 Communication 9447 8112 7900 8549 8254 9033 10590
18 Financial Services 47143 46323 48364 49306 54943 57270 60920
19 Real estate,Ownership 236179 240998 261433 285472 287060 305009 331445
of Dwellings and
Professional Services
a) Computer related 161723 163632 181493 202803 207193 218308 239090
Services
b) Other Professional 35185 37542 37918 41451 37728 39784 43598
Services
c) Ownership of 39271 39823 42022 41218 42139 46917 48756
Dwellings
20 Public Administration 15443 16506 19732 21056 20420 23622 24082
21 Other Services 44896 48445 50798 57289 46983 60545 64243
Total GSVA at Basic 754816 795688 850250 905833 875160 964460 1039690
Prices
Product Taxes 113935 136865 144902 145405 141754 161360 171354
Product Subsidies 17357 16912 17851 19446 23969 22353 20193
GSDP at Market Prices 851394 915642 977301 1031792 992945 1103468 1190851
Population ('000) 64900 65057 65580 66104 66627 67092 67515
Per Capita GSDP (Rs.) 131186 140745 149024 156086 149030 164471 176383
Primary Sector 75256 90887 86933 104408 119807 131599 138902
Secondary Sector 208105 213238 227522 216408 208016 228347 240118
Tertiary Sector 471455 491563 535795 585017 547337 604515 660670
Total GSVA at Basic 754816 795688 850250 905833 875160 964460 1039690
Prices
I.Agriculture 67653 83679 80248 97447 112432 122088 128932
II.Industry 215709 220445 234207 223369 215391 237857 250088
III.Services 471455 491563 535795 585017 547337 604515 660670
Total GSVA at Basic 754816 795688 850250 905833 875160 964460 1039690
Prices

AE : Advance Estimates, FRE : First Revised Estimates, SRE : Second Revised Estimates,TRE : Third Revised
Estimates

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Appendix 1.5 Gross / Net State Domestic Product and Per Capita Income

"Gross State
"Gross State "Net State "Net State "Per Capita Income
Domestic
Domestic Domestic Domestic (Per Capita Net State
Product
Sl. Product Product Product (NSDP) Domestic Product
Year (GSDP) at
No (GSDP) at (NSDP) at at Constant (NSDP) at Current
Constant
Current Prices Current Prices Prices Prices)
Prices
(Rs. Lakhs)" (Rs. Lakhs)" (Rs. Lakhs)" (in Rs.)"
(Rs. Lakhs)"
1 1960-61a 69164 69164 296
2 1961-62a 76445 74095 320
3 1962-63a 81180 78174 333
4 1963-64a 94137 81348 378
5 1964-65a 108609 81084 427
6 1965-66a 116372 75647 448
7 1966-67a 142621 85711 537
8 1967-68a 152521 85644 562
9 1968-69a 163106 93338 588
10 1969-70a 176316 99881 622
11 1970-71b 185811 185811 641
12 1971-72b 191564 188522 646
13 1972-73b 201243 176970 664
14 1973-74b 281535 204113 907
15 1974-75b 317771 203296 1000
16 1975-76b 309240 216477 951
17 1976-77b 328291 207012 986
18 1977-78b 381307 244450 1117
19 1978-79b 399507 253858 1142
20 1979-80b 482171 261228 1345
21 1980-81c 621032 621032 558736 558736 1520
22 1981-82c 716860 661709 642344 595740 1707
23 1982-83c 801276 680456 713722 610171 1855
24 1983-94c 961003 727767 861717 653582 2192
25 1984-85c 1083088 780809 969723 702315 2416
26 1985-86c 1157468 756897 1021834 673330 2495
27 1986-87c 1327121 824469 1173306 736513 2810
28 1987-88c 1515827 881547 1343482 788292 3159
29 1988-89c 1770911 956698 1567132 856321 3620
30 1989-90c 2021422 1013026 1779770 904572 4044
31 1990-91c 2330040 1025982 2055120 911210 4598
32 1991-92c 3009173 1149444 2673762 1026985 5889
33 1992-93c 3303585 1181049 2916231 1050758 6321
34 1993-94d 4107905 4107906 3698228 3698229 7838
35 1994-95d 4791516 4338693 4306510 3891705 8960

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"Gross State
"Gross State "Net State "Net State "Per Capita Income
Domestic
Domestic Domestic Domestic (Per Capita Net State
Product
Sl. Product Product Product (NSDP) Domestic Product
Year (GSDP) at
No (GSDP) at (NSDP) at at Constant (NSDP) at Current
Constant
Current Prices Current Prices Prices Prices)
Prices
(Rs. Lakhs)" (Rs. Lakhs)" (Rs. Lakhs)" (in Rs.)"
(Rs. Lakhs)"
36 1995-96d 5621456 4616681 5002819 4097390 10217
37 1996-97d 6517572 5030220 5807078 4473655 11670
38 1997-98d 7304576 5377782 6475689 4751682 12832
39 1998-99d 8784091 6061964 7875624 5396093 15396
40 1999-00e 10124741 10124741 9053192 9053192 17502
41 2000-01e 10836170 10268651 9634777 9113592 18344
42 2001-02e 11284650 10555966 9889675 9278843 18547
43 2002-03e 12088876 11035977 10589474 9776504 19621
44 2003-04e 13098974 11417352 11423011 9966856 20901
45 2004-05f 16674713 16674713 14872897 14872898 26882
46 2005-06f 19590407 18427703 17491121 16403065 31239
47 2006-07f 22723706 20266010 20381918 18108596 35981
48 2007-08f 27062879 22820215 24302840 20380990 42419
49 2008-09f 31031233 24442138 27853414 21830924 48084
50 2009-10f 33755850 24759029 30074742 21836349 51364
51 2010-11f 41070316 27272131 36833840 24081677 62251
52 2011-12g 60600981 60600981 55495220 55495220 90263
53 2012-13g 69541304 64303303 63592383 58655162 102319
54 2013-14g 81666615 70446605 74656904 63994017 118829
55 2014-15g 91392303 74842912 82578249 67128351 130024
56 2015-16g 104516810 83132991 95086639 74995161 148108
57 2016-17 g 120760772 94177405 110263629 85139399 169898
58 2017-18g 133324000 101970817 120901931 91564189 185840
59 2018-19g 147939143 108510062 134599856 97730148 205245
60 2019-20g 161113386 114880569 146374878 103179220 221431
61 2020-21 SRE 162507298 110821175 147452214 99294473 221310
62 2021-22 FRE 196272542 122971294 178212051 110346778 265623
63 2022-23 AE 224136839 132631929 203674768 119085053 301673

“Note: Estimates of Net State Domestic Product only were computed from 1960-61 to 1979-80.
a) Computed with base year as 1960-61
b) Computed with base year as 1970-71
c) Computed with base year as 1980-81
d) Computed with base year as 1993-94
e) Computed with base year as 1999-2000
f) Computed with base year as 2004-05
g) Computed with base year as 2011-12

AE : Advance Estimates, FRE : First Revised Estimates, SRE : Second Revised Estimates,
Source: Directorate of Economics and Statistics, Government of Karnataka.

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Appendix 1.6 Gross / Net District Domestic Product and Per Capita Net District Income for
the year 2021-22 (Provisional) (Rs. Crore)

Gross District Domestic Net District Domestic "Per Captia Income

Sl. Product (GDDP) Product (NDDP) (Per Capita NDDP
District
No Current Constant Current Constant at Current Prices)
Prices Prices Prices Prices (in Rs.)"

1 Bagalkote 46992 29392 42095 25993 202845

2 Bengaluru Urban 698461 443487 656283 412963 621131
3 Bengaluru Rural 37997 22488 34754 20211 319380
4 Belagavi 82400 49656 72246 42737 137644
5 Ballari 66480 41324 58471 35985 217096
6 Bidar 28440 17232 25052 14906 133935
7 Vijayapura 39058 23604 34147 20216 142810
8 Chamarajanagar 22769 13949 20104 12130 179338
9 Chickballapur 27757 16827 24594 14661 178438
10 Chikkamagaluru 46922 28653 42361 25598 338978
11 Chitradurga 34551 20880 30430 18036 166985
12 Dakshina Kannada 111859 75051 101671 67672 443057
13 Davangere 39489 21628 34874 18643 163233
14 Dharwad 45999 29326 41359 26039 203906
15 Gadag 20615 17264 18166 15256 155387
16 Kalaburagi 40500 28474 35227 24670 124998
17 Hassan 46218 28717 41380 25373 212122
18 Haveri 29352 17715 25901 15353 147626
19 Kodagu 16877 9350 15105 8220 248051
20 Kolar 33560 20863 29420 17975 174370
21 Koppal 24140 14461 21332 12530 139756
22 Mandya 48080 30623 43125 27137 217475
23 Mysuru 68297 42234 60739 36938 184297
24 Raichur 34905 21409 30687 18539 144879
25 Ramnagara 30130 19301 26782 16933 225263
26 Shivamogga 58041 32972 52242 29168 271418
27 Tumakuru 75177 45877 66715 40107 226773
28 Udupi 52505 33347 47946 30146 370834
29 Uttara Kannada 34733 20861 30880 18232 195665
30 Yadagiri 20423 12751 18033 11101 139838
State 1962725 1229713 1782120 1103468 265623

Source: Directorate of Economics and Statistics, Government of Karnataka.

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Appendix -1.7 Index Numbers of Wholesale Prices in India Base Year : 2011-12=100

Percentage variation
2020 2021 2022 in November over
Sl.
Item group Weight April
No.
April November April November April November 2020 2021 2022

1 Primary 22.62 137.8 152.8 151.5 168.4 174.5 177.7 10.89 11.16 1.83
Articles
2 Fuel & Power 13.15 89.8 94.2 108.9 136.0 151.2 159.6 4.90 24.89 5.56

3 Manufactured 64.23 118.7 121.6 129.9 136.6 144.7 141.5 2.44 5.16 -2.21
Products
All Commodities 100.00 119.2 125.1 132.0 143.7 152.3 152.1 4.95 8.86 -0.13

Source: Office of the Economic Adviser, Ministry of Commerce and Industry, GOI.

Appendix - 1.8 All - India Wholesesale Prices Index Numbers

Percentage variation
Primary over previous year / month
Year All Commodities
Articles Primary All
Articles Commodities
Base year: 2011-12=100
2015-16 124.6 109.7 -0.38 -3.65
2016-17 128.9 111.6 3.43 1.73
2017-18 130.6 114.9 1.38 2.92
2018-19 134.2 119.8 2.74 4.27
2019-20 143.3 121.8 6.77 1.68
2020-21 145.7 123.4 1.67 1.31
2021-22 159.9 139.4 9.75 12.97
(January 2022 to November 2022)
January 2022 167.5 143.8 -0.53 0.35
February 2022 167.5 145.3 0.00 1.04
March 2022 170.9 148.9 2.03 2.48
April 2022 174.5 152.3 2.11 2.28
May 2022 178.5 155.0 2.29 1.77
June 2022 181.5 155.4 1.68 0.26
July 2022 177.1 154.0 -2.42 -0.90
August 2022 178.3 153.2 0.68 -0.52
September 2022 175.9 151.9 -1.35 -0.85
October 2022 181.0 152.5 2.90 0.39
November 2022 177.7 152.1 -1.82 -0.26
Source: Office of the Economic Adviser, Ministry of Commerce and Industry, GOI.

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Appendix - 1.9 Wholesale Price Index Numbers of Agricultural \ Commodities in Karnataka

Base year : 1981-82=100

Percentage variation over

Year Index
previous year/month

2011-12 891 12.22

2012-13 978 9.76

2013-14 1042 6.54

2014-15 1151 10.46

2015-16 1201 4.34

2016-17 1198 -0.25

2017-18 1205 0.58

2018-19 1257 4.32

2019-20 1338 6.44

2020-21 1404 4.93

2021-22 1545 10.04

(January 2022 to November 2022)

January 2022 1639 0.24

February 2022 1641 0.12

March 2022 1643 0.12

April 2022 1658 0.91

May 2022 1658 0.00

June 2022 1641 -1.03

July 2022 1663 1.34

August 2022 1623 -2.41

September 2022 1605 -1.11

October 2022 1600 -0.31

November 2022 1634 2.13

Source : Directorate of Economics and Statistics, GOK.

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Appendix - 1.10 Groupwise Index Numbers of Wholesale Prices of Agricultural Commodities

in Karnataka Base Year 1981-82=100
Percentage
variation in
2020 2021 2022
Sl. Commodity November
Weight over April
No. Group
Novem- Novem- Novem-
April April April 2020 2021 2022
ber ber ber
1 Cereals 29.89 1534 1471 1383 1674 1732 1524 -4.11 21.04 -12.01
2 Pulses 4.92 1438 1512 1587 1614 1565 1742 5.15 1.70 11.31

3 Oilseeds 17.31 1421 1125 1399 1415 1471 1499 -20.83 1.14 1.90
4 Gur & Sugar 14.56 714 691 710 714 734 727 -3.22 0.56 -0.95
5 Fiber 9.64 1064 1054 1075 1407 1464 1464 -0.94 30.88 0.00
6 Condiments 2.27 1447 1235 1222 1200 1528 1703 -14.65 -1.80 11.45
and Spices
7 Miscella- 21.41 1758 2296 1944 2469 2458 2558 30.60 27.01 4.07
neous *
All 100.00 1391 1431 1385 1620 1658 1634 2.88 16.97 -1.45
Commod-
ities

Note: * Miscellaneous items include coffee, onion, potato, tobacco, tamarind, coconut and arecanut.
Source: Directorate of Economics and Statistics, GOK.

Appendix - 1.11 Consumer Price Index Numbers for Industrial Workers at All India and
Karnataka

All India Karnataka*

Month Base year : 2016=100 Base year : 2018=100
2020-21 2021-22 2022-23 2020-21 2021-22 2022-23
April 114.2 120.1 127.7 106.8 112.8 119.3
May 114.6 120.6 129.0 107.1 113.2 121.1
June 115.3 121.7 129.2 107.9 114.1 121.1
July 116.7 122.8 129.9 108.6 114.7 121.9
August 117.4 123.0 130.2 108.9 115.0 122.0
September 118.1 123.3 131.3 110.0 115.3 123.5
October 119.5 124.9 132.5 110.9 116.3 124.3
November 119.9 125.7 132.5 111.3 117.3 124.4
December 118.8 125.4 111.2 117.5
January 118.2 125.1 111.2 117.4
February 119.0 125.0 112.2 117.4
March 119.6 126.0 112.6 117.8
Note : * Average of 16 centres (9 State series + 7 Central series)
Source : 1) Labour Bureau, Shimla, GOI. 2) Directorate of Economics and Statistics, GOK.

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 State Income and Prices
46

Appendix- 1.12 Consumer Price Index Numbers for Industrial Workers in Karnataka

Percentage variation
2020-21 2021-22 2022-23 in November over
Sl. April
Centres
No.
Novem- Novem- Novem- 2020- 2021- 2022-
April April April
ber ber ber 21 22 23
Central Series (Base year: 2016=100)
1 Bengaluru 111.3 115.5 116.5 120.0 121.1 124.9 3.77 3.00 3.14
2 Belagavi 111.9 119.9 120.3 126.2 127.9 135.7 7.15 4.90 6.10
3 Hubballi-Dharwad 112.3 117.9 118.8 123.1 125.9 128.0 4.99 3.62 1.67
4 Madikeri 106.4 109.9 113.6 122.3 123.1 129.6 3.29 7.66 5.28
5 Mysuru 109.9 113.8 118.2 124.3 127.1 132.5 3.55 5.16 4.25
6 Davanagere 119.0 122.8 122.9 127.3 129.8 137.3 3.19 3.58 5.78
7 Chikmagalore 108.0 118.8 111.4 116.1 117.9 125.8 10.00 4.22 6.70
State Series (Base year:2018=100)
8 Ballari 105.0 109.1 111.6 116.6 118.7 123.6 3.90 4.48 4.13
9 Bhadravathi 106.7 111.4 112.9 116.3 119.4 124.7 4.40 3.01 4.44
10 Dandeli 107.6 112.8 114.4 118.4 121.5 127.0 4.83 3.50 4.53
11 Kalaburagi 106.6 109.5 113.0 119.3 120.7 126.3 2.72 5.58 4.64
12 Hassan 107.9 110.4 113.8 116.5 121.2 126.3 2.32 2.37 4.21
13 Mandya 103.7 108.4 111.8 115.2 117.5 122.3 4.53 3.04 4.09
14 Mangaluru 105.6 109.6 111.3 115.1 117.6 122.7 3.79 3.41 4.34
15 Raichur 107.1 109.8 114.0 118.8 120.8 125.6 2.52 4.21 3.97
16 Tumakuru 107.4 110.8 113.5 118.5 119.7 125.3 3.17 4.41 4.68
Source: 1. Labour Bureau, Shimla, GOI. 2. Directorate of Economics & Statistics, GOK.

Appendix - 1.13 Consumer Price Index Numbers for Industrial Workers at selected centres in
Karnataka State CENTRAL SERIES (General Index) Base Year: 2016=100

Hubli- Davana- Chik-

Year/ Month Bengaluru Belagavi Madikeri Mysuru
Dharwad gere magalore
2020-21 113.2 116.0 115.2 109.2 113.6 121.3 110.6
2021-22 118.5 124.3 122.1 118.3 122.4 126.0 114.7
(January 2022 to November 2022)
January 2022 119.4 126.8 124.1 122.2 123.8 127.0 117.4
February 2022 119.5 125.5 123.8 121.5 123.9 126.8 116.6
March 2022 119.1 126.3 124.5 121.7 124.7 127.6 117.3
April 2022 121.1 127.9 125.9 123.1 127.1 129.8 117.9
May 2022 123.2 129.9 127.4 125.3 127.5 131.9 120.3
June 2022 123.1 129.3 126.5 125.8 127.0 130.8 119.1
July 2022 124.2 129.1 125.9 124.9 127.7 131.5 120.2
August 2022 124.0 129.8 126.5 124.8 127.8 132.4 121.9
September 2022 125.0 131.7 126.7 127.5 130.9 134.3 123.6
October 2022 125.0 134.8 127.7 129.2 132.0 136.5 125.5
November 2022 124.9 135.7 128.0 129.6 132.5 137.3 125.8

Source: Labour Bureau, Shimla, GOI.

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 State Income and Prices
47

Appendix -1.14 Consumer Price Index Numbers for Industrial Workers at selected centres in
Karnataka State. STATE SEREIES: General Index Base Year: 2018=100

Badra- Kala- Manga- Tuma-

Year/ Month Ballari Dandeli Hassan Mandya Raichur
vathi buragi luru kuru

2020-21 108.2 109.5 110.9 109.0 110.0 107.3 108.0 109.9 109.8

2021-22 115.2 115.4 117.5 116.9 115.8 114.2 114.0 117.2 116.3

(January 2022 to November 2022)

January 2022 116.0 117.0 119.2 118.7 118.4 115.0 115.6 119.1 117.9

February 2022 117.0 117.3 119.5 118.8 118.4 115.7 116.2 118.8 118.1

March 2022 117.4 117.9 119.9 119.4 119.0 116.1 116.9 119.4 118.6

April 2022 118.7 119.4 121.5 120.7 121.2 117.5 117.6 120.8 119.7

May 2022 120.2 121.1 123.0 122.6 123.0 119.0 119.4 122.8 121.5

June 2022 121.3 122.1 123.7 123.5 123.8 119.8 120.1 124.0 122.5

July 2022 122.0 122.7 124.7 124.4 124.3 120.3 120.8 124.6 123.3

August 2022 122.7 123.4 125.6 124.9 124.9 120.8 121.2 124.8 124.1

September 2022 123.2 124.1 126.1 125.8 125.6 121.6 121.8 125.2 124.9

October 2022 123.5 124.5 126.9 126.5 126.3 122.5 122.3 125.6 125.5

November 2022 123.6 124.7 127.0 126.3 126.3 122.3 122.7 125.6 125.3

Source: Directorate of Economics & Statistics, GOK.

Appendix - 1.15 Consumer Price Index Numbers for Agricultural Labourers at All India and
Karnataka Base Year: 1986-87=100

Percentage variation
2020 2021 2022 in September
Item over April
Novem- Novem- Novem-
April April April 2020 2021 2022
ber ber ber
Karnataka
i) Food 1116 1204 1201 1259 1218 1266 7.89 4.83 3.94
ii) General 1122 1194 1204 1260 1247 1293 6.42 4.65 3.69
All-India
i) Food 971 1025 983 1034 1035 1098 5.56 5.19 6.09
ii) General 1014 1060 1041 1092 1108 1167 4.54 4.90 5.32

Source: Labour Bureau, Shimal, GOI.

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 State Income and Prices
48

Appendix - 1.16 Consumer Price Index Numbers for Agricultural Labourers at All India and
Karnataka Base Year : 1986-87=100

All India Karnataka

Year/Month
Food General Food General

2011-12 602 611 657 649

2012-13 658 672 737 724

2013-14 737 750 836 815

2014-15 778 800 860 863

2015-16 807 835 931 928

2016-17 841 870 1015 1001

2017-18 846 889 1075 1057

2018-19 850 907 1011 1029

2019-20 932 980 1077 1060

2020-21 990 1034 1166 1166

2021-22 1235 1241 1013 1075

(January 2022 to November 2022)

January 2022 1028 1095 1243 1259

February 2022 1026 1095 1226 1253

March 2022 1025 1098 1214 1246

April 2022 1035 1108 1218 1247

May 2022 1046 1119 1238 1260

June 2022 1052 1125 1238 1261

July 2022 1058 1131 1241 1262

August 2022 1069 1140 1246 1271

September 2022 1079 1149 1251 1275

October 2022 1093 1159 1268 1288

November 2022 1098 1167 1266 1293

Source : Labour Bureau, Shimla, GOI.

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 State Income and Prices
49

Appendix - 1.17 Urban and Rural Retail Price Index Numbers in Karnataka

Urban Retail Price Index Numbers Rural Retail Price Index Numbers
Year
Percentage variation over Percentage variation over
Index Index
previous year/month previous year/month
Base Year : 1970=100

2011-12 2161 9.03 3231 10.99

2012-13 2441 12.96 3565 10.34
2013-14 2810 15.12 3923 10.05
2014-15 2996 6.62 4189 6.78
2015-16 3263 8.91 4671 11.50
2016-17 3207 -1.71 4877 4.41
2017-18 3382 5.45 5042 3.38
2018-19 3353 -0.85 5017 -0.49
2019-20 3712 10.69 5247 4.59
2020-21 3997 7.68 5661 7.89
New Base Year: 2018=100
2021-22 121.00 - 123.04 -
(January 2022 November 2022)
January 129.38 5.65 124.62 -1.64
2022
February 129.88 0.39 122.97 -1.32
2022
March 2022 130.13 0.19 124.48 1.23
April 2022 130.70 0.44 126.55 1.66
May 2022 131.24 0.41 126.93 0.30
June 2022 131.37 0.10 126.95 0.02
July 2022 133.40 1.55 122.86 -3.22
August 135.58 1.63 122.16 -0.57
2022
September 135.67 0.07 124.38 1.82
2022
October 136.09 0.31 125.16 0.63
2022
November 137.30 0.89 125.25 0.07
2022

Source : Directorate of Economics and Statistics, GOK.

Karnataka Economic Survey 2022-23

 State Income and Prices
50

Karnataka Economic Survey 2022-23

 2
CHA PT E R
FISCAL DEVELOPMENT AND
STATE FINANCES
2.1 Introduction

In 2022-23, budget programmes have been formulated for the overall development
of the State by achieving higher economic development and maintaining the fiscal
discipline. The state has better fiscal condition through prioritizing expenditures as
well as improving revenue collections. This has implications for the fiscal position of the
state. However, with the increasing government expenditure and declining government
revenues, keeping the fiscal d eficit at a low level is challenging. However, Karnataka
managed to contain the fiscal deficit to 2.84 percent of GSDP in 2021-22(RE). Further,
for 2022-23(BE), the fiscal deficit has been targeted at 3.26 percent, which is marginally
higher than in the previous year.

2.2 FISCAL CONSOLIDATION

In terms of fiscal consolidation that reflects the extent of fiscal discipline as well as the
quality of government expenditures, the state of Karnataka has been in the forefront
and has always maintained fiscal prudence as one of its main policy goals. The fiscal
consolidation efforts in the state have continued and has ensured all the fiscal
parameters are within the stipulated limits of the Karnataka Fiscal Responsibility
Act, 2002 (KFRA). Fiscal and revenue deficits for the period 2016-17 to 2022-23(BE) are
presented in Figure 2.1.

Figure 2.1 Revenue Deficit and Fiscal Deficit as a % to GSDP

2021-22 2022-23
2016-17 2017-18 2018-19 2019-20 2020-21
(RE) (BE)
Fiscal Deficit as a % of GSDP 2.57 2.37 2.73 2.25 3.72 2.84 3.26
Revenue Deficit as a % of GSDP -0.12 -0.34 -0.05 -0.07 1.07 0.36 0.78

Source: Economic Survey 2021-22, Planning Department, GoK and Overview of Budget 2022-23, Finance
Department, GoK.
 Fiscal Development and State Finances
52

Over the last several years with an exception in 2020-21, the fiscal deficit could be
maintained within 3% of GSDP as mandated by the KFRA and managed by the
Government of India. The state has budgeted the fiscal deficit at 3.26% of GSDP in 2022-
23 (BE) in spite of the relaxation of this limit to 4% of GSDP following the pandemic
(as suggested by the 15th Finance Commission). For 2022-23 and for 2023-24, the 15th
Finance Commission suggests a fiscal deficit target of 3.5 and 3 percent, respectively, for
the state governments. As the fiscal deficit is already below 3.5 percent, achieving these
targets in the next two years may not be difficult for the state of Karnataka. Widening on
the revenue account from surplus to deficit is not substantial. However, this is different
from the suggested surplus on the revenue account by the states as per the ‘indicative’
roadmap suggested by the 15th Finance Commission (page. 373, Table 12.4, Vol.1, 15th
Finance Commission).
2.3 KARNATAKA vis-à-vis OTHER STATES
In the past few years, the Karnataka’s major fiscal parameters fared well when compared
with the ‘all states’ average. This is reflected in the trends in various fiscal parameters
presented in Table 2.1. The State has been maintaining revenue surplus until the on-
set of Covid-19. Further, the State has a capital outlay of 93.12% in the GFD as compared
to deterioration to 79.73% for all States average in 2019-20(Accounts). These numbers
suggest that almost all of fiscal deficit is channeled towards government Capital
Expenditure, which is the crux of the KFRA and this is expected to help in achieving rapid
economic growth in the state. However, Karnataka could face a severe task of reverting
to surpluses on the revenue account that was the highlight of the state fiscal situation
so as to enhance infrastructure investments in the state. Other parameters such as ratio
of State Tax Revenue in the Revenue Expenditure and Non-development Expenditure
as ratio of Aggregate Disbursements all suggests that Karnataka is in a better position
compared to ‘all states’.
Table 2.1: Major Fiscal Indicators of Karnataka

2020-21 2021- 22
2017-18 2018-19 2019-20
(Revised (Budget
(Accounts) (Accounts) (Accounts)
Fiscal Estimates) Estimates)
Indicators
All All All All All
KAR KAR KAR KAR KAR
States States States States States

RD/GFD -14.52 4.59 -1.77 3.84 -3.11 23.15 33.41 42.41 25.54 14.39

Capital Outlay/
98.60 95.89 90.16 95.15 93.12 79.73 63.69 54.13 69.81 81.48
GFD

Non-dev.
Expenditure/
26.91 28.20 20.30 28.30 22.20 28.80 26.50 28.00 27.50 27.90
Aggregate
Disbursement

STR/RE 65.54 56.00 63.50 54.30 63.20 53.20 57.30 45.60 63.90 52.70

RD = Revenue Deficit, GFD = Gross Fiscal Deficit, STR =State Tax Revenue, RE = Revenue Expenditure
Source: Economic Survey 2021-22, Planning Department, GoK and RBI-Study of budgets, 2021-22,
Statements-1 and 4.

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 Fiscal Development and State Finances
53

When the fiscal situation of Karnataka is compared with other southern states, which
are largely comparable in terms of strength, structure, inter-connectedness as well as
proximity of the economies, it is clear that Karnataka has performed better in managing
its fiscal position (Figure 2.2). Among the five southern states, Karnataka registered lowest
fiscal deficit. In 2021-22(BE), Karnataka recorded the lowest fiscal deficit (3.30%) among
the southern states with Andhra Pradesh (3.50%), Kerala (3.50%), Telangana (4.00%) and
Tamil Nadu (4.80%) having the fiscal deficits at a higher level compared to Karnataka.

Figure 2.2: Karnataka’s Fiscal Deficit (as a % of GSDP) Compared with the Southern States
% to GSDP

2020-21 2021-22
2016-17 2017-18 2018-19 2019-20
(RE) (BE)
AP 4.40 4.10 4.10 4.10 5.50 3.50
Karnataka 2.57 2.37 2.50 2.30 3.50 3.30
Kerala 4.20 3.80 3.40 2.80 4.30 3.50
Telangana 5.30 3.50 3.10 3.30 4.30 4.00
Tamil Nadu 4.30 2.70 2.90 3.30 5.50 4.80
Source: Economic Survey 2021-22 Planning Department, GoK and RBI Report on State Finances: A Study
of Budgets of 2021-22, Table II.5.

The latest data on net borrowings of the state also suggest that among the southern
states, Karnataka has a net market borrowings of Rs. 3500.00 crores as on October 2022
(RBI Bulletin, December 20th 2022) (with Andhra Pradesh, Tamil Nadu, Telangana,
and Kerala borrowing Rs. 36155.00 crores, Rs. 26153.00 crores, Rs. 18485.00 crores and
Rs. 4436.00 crores respectively). While some part of the reason for such lower market
borrowing could be due to revenues (especially the central transfers of both direct and
indirect taxes) exceeding the Budget estimates, the efforts on rationalization of public
expenditures also could have helped to some extent.

2.4 STATE FINANCES

Karnataka has been in the forefront in terms of adhering to the fiscal consolidation efforts
as mandated by the FRA. To achieve this, similar to the Centre’s Expenditure Management
Commission, the state had its own Expenditure Reforms Commission. Based on the
Commission’s recommendations, by and large, the state has been protecting the targets
on the capital outlays even when there are some distresses on the revenue side. In other
words, the state has been trying not to resort to compression of capital outlays even
when are there are revenue shortages compared to budgeted numbers. In addition to
expenditure reforms, the state has also undertook tax reforms and revamped the tax

Karnataka Economic Survey 2022-23

 Fiscal Development and State Finances
54

administration, which seems to have yielded results in terms of higher revenue receipts.
This may be noted in Table 2.2 where except for 2020-21, the revenue receipts have been
increasing every year. As a ratio GSDP, again, the state average numbers of about 11
percent. Unlike many other states, Karnataka also generates significant capital receipts
(net) through implementing Expenditure Reforms Commission as well as through
restructuring of public sector undertakings. The share of net capital receipts that are
below 3 percent in the past four years is expected to jump to 4.05 percent in 2021-22 and
4 percent in 2022-23.

In terms of expenditures, there is a decline in the revenue expenditure from 10.75 percent
in 2017-18 to 9.76 percent by 2020-21. This compression in revenue expenditure seems to
help in retaining the capital expenditure above 2.00 percent of GSDP, thus, suggesting no
compression even during the revenue shock period. Such fiscal consolidation framework
augurs well for the state in order to double the state’s income in coming 4 to 5 years.

Table 2.2: Receipts and expenditure of Karnataka (Rs. crore)

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23

Items/ Years
(A/Cs) (A/Cs) (A/Cs) (A/Cs) (RE) (BE)
Revenue receipts 146999.65 164978.66 175442.79 156716.40 189579.26 189887.54
Revenue
142482.33 164299.85 174257.40 176053.91 195814.47 204586.68
expenditure
Capital receipts(net) 35380.85 42405.05 42907.18 71252.65 69729.72 75486.83
Capital
39278.14 42812.17 43468.42 51991.02 55430.47 60133.13
Disbursements
Capital outlay
(outside the revenue 30666.76 34659.32 35529.44 45406.05 39481.98 43572.65
account)
% of GSDP
Revenue receipts 11.09 11.72 10.33 8.69 11.01 10.07
Revenue
10.75 11.67 10.26 9.76 11.38 10.85
Expenditure
Capital receipts (net) 2.67 3.01 2.53 3.95 4.05 4.00
Capital
3.00 3.04 2.56 2.52 2.29 2.31
Disbursements
Capital outlay
(outside the revenue 2.31 2.46 2.09 3.28 3.22 3.19
account)

Source: (i) Economic Survey 2021-22, Planning Department, GoK (ii)Annual Financial Statement 2022-23
(iii) Medium Term Fiscal Plan (2022-26), Finance Department, GoK (iv) Volume I of Budget Documents
2022-23, Finance Department GoK
Note: (a) Capital Receipts (net) does not include (i) Ways and Means and Market Borrowings but include
Contingency Fund (net) and Public Account (net).
(b) Capital Disbursement does not include Ways and Means and Market Borrowings

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55

Revenue Receipts and its Composition:

As may be noted in Table 2.3, the major component of the State’s revenue receipts is
the own tax collections. The annual average share of the state’s own tax in the last five
years is about 7.22 percent. However, serious cause for concern is the declining share
of central taxes, which has been declining continuously from 2.42 percent in 2017-18 to
1.58 percent in 2022-23. The trend is expected to be similar when we look at the grants
from the centre which has declined from 1.17 percent in 2017-18 to as low as 0.90 percent
in 2020-21. The other source of revenue receipts, i.e., non-tax revenue, has been sticky
at around 0.5 percent. This shows constraints that the government faces in mobilizing
additional non-tax revenues. Any progress on the proposed asset monetization policy in
the state should help in improving more non-tax revenues in the coming years.
Table 2.3: Composition of revenue receipts (% of GSDP)

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23

Year
(A/Cs) (A/Cs) (A/Cs) (A/Cs) (RE) (BE)
State taxes 7.12 7.64 6.88 6.83 7.95 6.94
Share of central taxes 2.42 2.55 1.82 1.20 1.58 1.58
Grants from Centre 1.17 1.05 1.18 0.90 0.97 0.97
Non-Tax Revenue 0.49 0.48 0.45 0.44 0.52 0.58
Source: (i) Economic Survey 2021-22, Planning Department, GoK (ii) Medium Term Fiscal Plan (2022-26),
Finance Department, GoK.

Finance Commission Grants

One of the important and serious challenges for the state of Karnataka during the 15th
Finance Commission period is the decline in the share of state in the divisible of pool
of central taxes. It has declined from 1.98 percent during the 14th Finance Commission
period to 1.5 percent in 2020-21 and also during the five-year period of the 15th Finance
Commission (i.e.,2021-26). Based on the 15th Finance Commission’s own estimates,
Karnataka could see the decline in central tax transfers by about 24.5 percent between
the two Commission’s recommendations, which is going to pose a sever challenge for
the state to cope up in the next five years.
Table 2.4: Finance Commission Grants Recommended for all states and Karnataka
(for 2021-26) (Rs. crore)

Grants All states Karnataka Karnataka Share in Total (in %)

Revenue Deficit grants 294514.00 1631.00 0.6
Grants for Local Bodies 436361.00 21877.00 5.0
Sector-specific grants 129987.00 4560.00 3.5
Grants under disaster
122601.00 4369.00 3.6
management
State-specific grants 49599.00 6000.00 12.1
Total 1033062.00 38437.00 3.7

Source: 15th Finance Commission Report.

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 Fiscal Development and State Finances
56

It may be noted in Table 2.4, the overall share of the Finance Commission grants for
Karnataka is about 3.7 percent which is reduction of over one percentage point compared
to 14th Finance Commission, which was at 4.71 percent.
Outstanding Liabilities
Similar to the trends at the Union Government, the states are also expected to exceed
their targets on outstanding liabilities as set by their respective state legislations. In
the case of Karnataka also, as presented in the Medium-Term Fiscal Plan of 2022-26,
the outstanding liabilities (as percent of GSDP) is expected to have increased by over 5
percentage points between 2020-21 and 2022-23 (Figure 2.4) and in terms of levels, it is
expected to increase by Rs 1.14 lakh crore in the same period (Figure 2.3).
Figure 2.3: Total liabilities of State Government (Rs. Crore)

600000

500000 518366
458042
400000
403520
300000 337520
285238
200000 246232

100000

0
2017-18 2018-19 2019-20 2020-21 2021-22(RE) 2022-23(BE)

Source: (i) Economic Survey 2021-22, Planning Department, GoK (ii) Medium Term Fiscal Plan (2022-26),
Finance Department, GoK
Figure 2.4: Total liabilities (as a % to GSDP)

30 26.61
27.49
25

19.87
20 22.37
% to GSDP

18.78 20.26
15

10

0
2017-18 2018-19 2019-20 2020-21 2021-22(RE) 2022-23(BE)

Source: (i) Economic Survey 2021-22, Planning Department, GoK (ii) Medium Term Fiscal Plan (2022- 26),
Finance Department, GoK

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 Fiscal Development and State Finances
57

Further, the Medium-Term Fiscal Plan 2022-26 suggest that the outstanding liabilities
to stabilize at 26.95 percent by 2025-26. This is almost similar to what the 15th Finance
Commission estimated for the state. The Commission estimates that if the state follows
the fiscal deficit targets as suggested by the Commission, the outstanding liabilities is
expected to be at 27.1 percent even by 2025-26, which is the last year of the Finance
Commission period. Even to achieve this, the state needs to bring down the fiscal deficit
to 3 percent for the period 2023-26.

2.5. BUDGETARY DEVELOPMENTS IN 2022-23

2.5.1 Main trends

Revenue receipts largely follow the extent of economic activities. With the recovery in
most of the economic activities from 2021-22, the state is in a position to improve its
revenue collection capacity. However, as may be noted in Table 2.5, volatility in GSDP
growth appear to affect the composition of receipts while broadly retaining the overall
revenue growth between year of economic slump as well as in the year of recovery. While
the growth rate of revenue receipts is 0.16 percent in 2022-23, the growth of capital
receipts for the same reference year is 8.26 percent and the overall receipts are expected
to increase by 2.34 percent. In terms of shares, the share of revenue and capital receipts
on total is 71.56 and 28.44 percent.

In the case of expenditures, Revenue expenditure is expected to increase by 4.48 percent

in 2022-23, capital expenditure is expected to increase by 8.48 percent and the overall
expenditure is expected to increase by 5.36 percent.

Table 2.5: Overall Budgetary Position (Rs. crore)

% variation in
Receipts and 2020-21 2021-22 2022-23
2022-23 over
Disbursements (A/Cs) (R.E) (B.E)
2021-22
A. Receipts
1 Revenue Receipts 156716.41 189579.27 189887.54 0.16
2 Capital Receipts 71252.65 69729.72 75486.83 8.26
Total A: (1+2) 227969.06 259308.99 265374.37 2.34
B. Disbursements
1 Revenue Expenditure 176053.91 195814.47 204586.68 4.48
2 Capital Disbursements 51991.02 55430.47 60133.13 8.48
Total B :(1+2) 228044.93 251244.94 264719.81 5.36

A/Cs: Accounts, R.E.: Revised Estimates, B.E.: Budget Estimates

Note (i) Ways and means and Market Borrowings have not been included in the Capital receipts and
expenditure. (ii) Public Account Net and Contigency Fund included in the Capital Receipts.
Sources: Annual Financial Statement 2022-23 and Volume I of Budget documents 2022-23.

Table 2.6 provides the details about some of the crucial indicators between 2021-22
(RE) and 2022-23 (BE). This has both aggregate revenue and expenditure indicators for
different classification. The table also provides both per capita revenue receipts as well
as per capita expenditures. The per capita revenue receipts (Rs. 26484) being more than

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 Fiscal Development and State Finances
58

the per capita developmental expenditure (Rs.24171) for 2022-23 suggest that gap being
used for financing non-developmental expenditures such as debt servicing. Indeed, the
share of developmental expenditure in total expenditure has shown an increasing trend
from 65.21 percent in 2021-22(RE) to 65.47 percent in 2022-23(BE).

Table 2.6 : Important Budgetary Indicators: Karnataka (Rs. crore)

Sl. No. Indicator Unit 2021-22 (R.E) 2022-23 (B.E)

Aggregate Receipts(Revenue +
1 Rs. Crore 259308.99 265374.37
Capital)
2 Revenue Receipts Rs. Crore 189579.27 189887.54
3 State’s Own Tax Revenue Rs. Crore 136775.75 131882.75
4 Per Capita State’s Own Tax Revenue Rupees 19346 18394
5 Sales Tax / VAT Collection Rs. Crore 16791.00 17640.00
Share of Sales Tax /VAT in the State’s
6 % 9.37 13.90
Own Tax Revenue
Non-Tax Revenue including Grants
7 Rs. Crore 25669.00 28222.00
from the Centre
Share of Non-Tax Revenue in
8 % 13.54 14.86
Revenue Receipts
9 Debt Receipts Rs. Crore 67331.82 72000.46
Share of Debts Receipts in Aggregate
10 % 25.97 27.13
Receipts
11 Per Capita Revenue Receipts Rupees 26815 26484
Aggregate Expenditure (Revenue +
12 Rs. Crore 251244.94 264719.81
Capital)
13 Developmental Expenditure Rs. Crore 163825.48 173308.83
14 Per Capita Development Expenditure Rupees 23172 24171
Share of Developmental Expenditure
15 % 65.21 65.47
in Total Expenditure

R.E.: Revised Estimates, B.E.: Budget Estimates

Note: Per capita are calculated on projected population of 2020 and 2021
Source: Annual Financial Statement 2022-23, Finance Department, GoK

2.5.2 Receipts

2.5.2.1 Revenue Receipts

By definition, total revenue receipts include four major components: own tax revenue, non-
tax revenue, devolution from the Central Government and Grants-in- Aid & contributions.
The large chunk of revenue receipts is coming from state’s own tax revenue which is
estimated to be 69.45 percent in 2022-23(BE). The tax devolution from Government of
India constitutes 15.68 percent of revenue receipts. The lowest contributor to the revenue
receipts is coming from the non-tax revenue (5.76 percent). The rest 9.10 percent of the
revenue receipts is in the form of Grants - in - aid from Central Government. The tax

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 Fiscal Development and State Finances
59

devolution from Government of India is expected to increase by 9.76 percent in 2022-23

(BE) over 2021-22 (RE) while the Grants - in - aid is expected to increase by 3.67 percent
during the same period.

Tax Revenues and Tax effort: The State’s own tax revenues (SOTR), which is identified as
a crucial parameter to understand the fiscal strength of the State, is expected to increase
from Rs. 110863.00 crore in 2020-21 to Rs.136776.00 crore in 2021-22(RE). While it could
reflect the efficiency of the tax administration in the state, looking at the tax effort data,
which is showing a declining trend, as shown in Figure 2.5, do raise concern with regard
to tax administration and its efficiency.

Figure 2.5 State’s Own Tax Revenue (Rs. crore)

131882
136776

116880
107667 110863
93376

2017-18 2018-19 2019-20 2020-21 2021-22(RE) 2022-23(BE)

Source: (i) Economic Survey 2021-22, Planning Department, GoK (ii) Medium Term
Fiscal Plan (2022- 26), Finance Department, GoK

Figure 2.6: Tax-GSDP Ratio

8.20
8.00
7.95
7.80
7.64
7.60
% to GSDP

7.40
7.20 7.42

7.00 7.12 6.88 6.83

6.80
6.60
6.40
6.20
2016-17 2017-18 2018-19 2019-20 2020-21(BE) 2021-22(RE)

Source: (i) Economic Survey 2021-22, Planning Department, GoK (ii) Medium Term Fiscal Plan (2022- 26),
Finance Department, GoK.

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 Fiscal Development and State Finances
60

With respect to composition of the total revenue receipts, while there are various sources,
as shown in Figure 2.5, the State’s own tax revenue has been performing very well. The
total revenue receipts (consisting of taxes on income & expenditure, entry tax, property
and capital transactions, VAT, sale of goods, commodities & services, State excise, motor
vehicle taxes and the State’s share in central taxes) is estimated at Rs.189887.53 lakh
crore in 2022-23(BE) as against Rs.189579.26 lakh crore in 2021-22(RE). Goods and Service
Tax (GST) is the main source of indirect tax revenue comprising little over a quarter of
Revenue Receipts in 2022-23(BE).

The State’s share in central taxes is (as per the Union Budget) anticipated to increase
from Rs.27134.94 crore in 2021-22(RE) to Rs.29783.21 crore in 2022-23(BE), a growth of 9.76
percent in 2022-23(BE) over 2021-22(RE).

Non - tax Revenues: Unlike at all India level, at the state level, the role of non-tax revenue
in the overall revenues is expected to be lower. The non-tax revenues, which is largely
through the usage of social, economic and general services as well as a small component
of interest and dividends, is expected to increase from Rs. 9000.00 crore in 2021-22(RE)
to Rs. 10940.56 crore in 2022-23(BE). However, the share of these revenues in the total
revenues has been declining over the years and is currently at about 5.00 percent. This
suggest that there are increasing implicit subsidies in the form of un-recovered user
charges across the services. And this could pose serious challenge to the fiscal strength
of the state. Any effort to reduce these subsidies could be beneficial for increasing social
sector expenditure at the state. For a state like Karnataka with non-tax revenue being just
about one percent of GSDP, it suggests a substantially low recovery costs, user charges,
fees, etc. Here it is necessary to relook at the recommendations of the Expenditure
Reforms Commission and implement in order to improve this source of revenues.

2.5.2.2 Capital Receipts

It is the capital receipts that have substituted the decline in the tax revenue receipts.
Here capital receipts could come in the form of loans from Central Government,
internal debt management (excluding ways & means advances and market loans),
public accounts (net), recoveries of loans & advances, contingency funds (net) and
miscellaneous capital receipts. The state has budgeted an increase in capital receipts
from Rs. 69729.72 crore in 2021-22(RE) to Rs. 75486.84 crore in 2022-23(BE), which is higher
by 8.26 percent compared to 2021-22(RE). The above Revenue and Capital Receipts are
given in Table 2.7.

Table 2.7: Revenue and Capital Receipts, Karnataka 2020-21 to 2022-23 (Rs. Crore)

Percent
Variation
Category of 2020-21 2021-22 2022-23 2020-21 2021-22 2022-23
2022-23
Receipts (A/Cs) (R.E) (B.E) (A\Cs) (R.E) (B.E)
over
2021-22
I. Revenue Receipts % to Total Revenue Receipts
A. State’s Tax 132535.90 163910.65 161665.96 -1.37 84.57 86.46 85.14
Revenue
(i+ii+iii+iv+v)
(i) Taxes on Income 1127.09 1027.00 1150.00 11.98 0.72 0.54 0.61
and Expenditure

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 Fiscal Development and State Finances
61

Percent
Variation
Category of 2020-21 2021-22 2022-23 2020-21 2021-22 2022-23
2022-23
Receipts (A/Cs) (R.E) (B.E) (A\Cs) (R.E) (B.E)
over
2021-22
(ii) Taxes on 58235.27 64534.45 72512.75 12.36 37.16 34.04 38.19
Property
& Capital
Transactions of
which
(a) Sales Tax / 16027.59 16791.00 17640.00 5.06 10.23 8.86 9.29
VAT
(b) Taxes on 5606.99 75144.80 8006.68 6.55 3.58 3.96 4.22
vehicles
(c) State Excise 23332.09 24580.00 29000.00 17.98 14.89 12.97 15.27
(d) Taxes 16.15 0.01 0.00 0.00
on Goods &
Passengers
(e) Others 13252.44 15648.65 17866.07 14.17 8.46 8.25 9.17
(iii) GST 13789.25 25267.26 5000.00 -80.21 8.80 13.33 2.63
Compensation
(iv) State Goods and 37711.18 45947.00 53220.00 15.83 24.06 24.24 28.03
Service Tax
State’s Own 110862.79 136775.71 131882.75 -3.58 70.74 72.15 69.45
Tax Revenue
(i)+(ii)+(iii)+(iv)
v) Tax Devolution 21673.11 27134.94 29783.21 9.76 13.83 14.31 15.68
from Centre
B. Non-tax 7893.84 9000.00 10940.56 21.56 5.04 4.75 5.76
Revenues
C. Grants-in-aid 16287.00 16669.00 17281.00 3.67 10.39 8.79 9.10
from Central
Government
(excl. GST
compensation)
Total I: Revenue 156716.41 189579.26 189887.53 0.16
Receipts
(A+B+C)
II. Capital Receipts % to total Capital Receipts
(i) Loans from 14114.08 2231.82 3089.36 38.42 19.81 3.20 4.09
Govt. of India
(ii) Internal Debt 63313.86 63600.00 67911.00 6.78 88.86 91.21 89.96
(Net W & M&MB)
(iii) Public A/c (Net) -6490.38 3347.06 4397.08 31.37 -9.11 4.80 5.82
(iv) Recovery 269.87 90.84 71.40 -21.40 0.38 0.13 0.09
of Loans &
Advances

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 Fiscal Development and State Finances
62

Percent
Variation
Category of 2020-21 2021-22 2022-23 2020-21 2021-22 2022-23
2022-23
Receipts (A/Cs) (R.E) (B.E) (A\Cs) (R.E) (B.E)
over
2021-22
(v) Contingency 0.00 420.00 0.00 0.00 0.00 0.60 0.00
Fund (Net)

(vi) Misc. Capital 45.23 40.00 18.00 -55.00 0.06 0.06 0.02
Receipts

Total II: Capital 71252.66 69729.72 75486.84 8.26

Receipts (i) to
(vi)

AGGREGATE 227969.07 259308.98 265374.37 2.34

RECEIPTS: I+II

CONSOLIDATE 241559.45 257041.92 261977.40 1.92

D FUND OF
RECEIPTS

Total Tax 58.14 63.21 60.92

Revenue as
per cent of
Aggregate
Receipts

A/Cs: Accounts, RE: Revised Estimates. BE: Budget Estimates,

W & M = Ways & Means, MB =Market Borrowings
Source: Annual Financial Statement 2022-23; Volume1 of 2022-23 Budget Documents,
Finance Department, GoK

2.5.3 Trends in Expenditures

As may be noted in Table 2.8, the Budget for 2022-23 has tried to revert back to pre-
pandemic levels in terms of expenditures, as ratio to GSDP, such as developmental
and capital expenditures. The developmental expenditure that has seen a dip to
8.99 percent in 2020-21 has been budgeted to increase to 9.19 percent. Similar trend
is expected in other services such as social and general services. However, the rise in
interest payments from 1.22 percent in 2020-21 to 1.56 percent in 2022-23 is a cause for
concern. With the increasing outstanding debt from 21.35 percent to 26.64 percent
in the same period only resulting further rise in the interest payment burden for the
state. Similar trend is expected in the wage bill and pensions as well. This is expected
to push-up the revenue expenditure which could suggest the future vulnerability of the
state fiscal position. One silver lining in all these expenditures is that state could ring-
fence the capital expenditure pattern from the pandemic shock and continues to ensure
at least 2.00 percent every year. But to meet the FRA limits, there is a need to further
enhance these expenditures to over 3.00 percent in the medium term.

2.5.3.1 Functional Categories of Expenditure

In terms of various types of expenditures by the government, they are divided into
three functional categories namely General, Social and Economic and this forms the basis

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 Fiscal Development and State Finances
63

for allocating resources as per the broad objectives of the governments. The composition
of the functional categories of expenditure (Table 2.8) reveal that the government
focuses on social services covering the sectors such as education, health, housing, water
supply etc. For the year 2022-23, Karnataka has budgeted to spend 4.71 percent of its
GSDP on social services while its spending proposal on economic and general services
are 4.30 percent and 3.83 percent, respectively. However, as a percentage of GSDP, there
seems to be decline in the expenditure on economic services between 2020-21 and 2022-
23 (BE) while the expenditure on general and social services has increased in the same
period.

Table 2.8 : Expenditure Indicators in Karnataka (% of GSDP)

2020-21 2021-22 2022-23

Particulars
(Accounts) (RE) (BE)
Revenue Receipts 8.69 11.01 10.07
Revenue Expenditure (RE) 9.76 11.38 10.85
Development Expenditure 8.99 9.52 9.19
Social Services 4.06 4.95 4.71
Economic Services 4.78 4.40 4.30
General Services 3.12 3.95 3.83
Interest Payments 1.22 1.58 1.56
Wage Bill 1.77 2.23 2.19
Pensions 1.05 1.36 1.27
Capital Outlay (Outside the revenue 3.28 3.22 3.19
Account)
Total Expenditure (RE+CE) 12.28 13.67 13.16
Outstanding Debt 21.35 25.60 26.64
Total Consolidated Fund 13.04 14.71 14.09

Source: Annual Financial Statement 2022-23; Volume1 of 2022-23 Budget Documents,

Medium Term Fiscal Plan 2022-26, Finance Department, GoK,

2.5.3.2 Expenditure Highlights: 2022-23

In this section, disaggregated information on development and non-development

expenditures at the sectoral level is discussed and the same is presented in Table 2.9.

Between 2021-22(RE) and 2022-23(BE), the overall developmental expenditure as portion

to total expenditure appears to have increased from 67.51 percent to 67.77 percent.
Since the pandemic, with the increased pressure on the health care services, the overall
expenditure on social services within the development expenditure has increased from
46.03 percent in 2020-21 to 52.31 per cent in 2022-23 (BE). Overall, the social services
expenditure is expected to increase by 4.18 percent between 2021-22(RE) and 2022-
23(BE). On the other hand, expenditure on economic services is expected to increase by
7.61 percent for the same reference period. In terms of shares, within that, the share of
Agriculture & Allied Services appears to increase from 10.89 percent to 11.89 percent.

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64

As discussed earlier, increase in the share of non-development expenditure, which is

expected to increase by 4.53 percent between 2021-22(RE) and 2022-23(BE) could pose
significant challenge for fiscal strength in the coming years. And this increase has largely
been contributed by increase in interest payments as well as wage and pension bills,
which are only expected to increase due to larger debt situation in the medium term.
The servicing of debt is expected to increase by 7.66 percent in 2022-23(BE).

Table 2.9: Trends in Key Expenditure Components (Rs. crore)

Percent
Variation
Category of 2020-21 2021-22 2022-23
%* %* %* (2022-23
Expenditure (A/C) (RE) (BE)
over
2021-22)

I Developmental Expenditure
A Economic Services 87553.29 53.97 76807.02 46.88 82649.45 47.69 7.61
of which
1 Agriculture & Allied 19094.19 11.77 17837.28 10.89 20611.71 11.89 15.55
Services
2 Rural Development 9144.02 5.64 9159.98 5.59 9202.05 5.31 0.46
3 General Economic 5257.25 3.24 3807.20 2.32 4524.57 2.61 18.84
Services
4 Water & Power 34895.26 21.51 32865.62 20.06 33017.20 19.05 0.46
Development
5 Industry and 3382.74 2.09 2628.60 1.60 2681.37 1.55 2.01
Minerals
6 Transport and 15561.91 9.59 12281.68 7.50 12104.61 6.98 -1.44
Communication
7 Others 217.92 0.14 253.67 0.15 250.31 0.14 -1.32
B Social Services of 74665.71 46.03 87018.41 90659.35 52.31 4.18
which

8 Education, Sports, 25483.36 15.53 29607.13 18.07 32018.20 18.47 8.14

Art and Culture
9 Medical & Public 17025.90 10.50 22816.77 13.93 22763.47 13.13 -0.23
Health, Family
Welfare, Water
supply & Sanitation
10 Social Security & 17891.04 11.03 19020.24 11.61 21602.79 12.46 13.58
Welfare Including
SC / ST/OBCs/
Minorities Welfare
11 Housing and Urban 8827.87 5.44 8993.51 5.49 9844.42 5.68 9.46
Development
12 Information and 200.39 0.12 227.72 0.14 210.37 0.12 -7.62
Publicity
13 Others 5237.15 3.23 6353.04 3.88 4220.10 2.44 -33.57

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 Fiscal Development and State Finances
65

Percent
Variation
Category of 2020-21 2021-22 2022-23
%* %* %* (2022-23
Expenditure (A/C) (RE) (BE)
over
2021-22)

Total 162219.00 163825.43 173308.80 5.79

Developmental
Exp. (A+B)
II Non-Developmental Expenditure
14 General services 55017.93 85.41 67932.74 86.16 72166.16 87.57 6.23
15 Organs of the State 1630.94 2.47 1992.14 2.52 2108.98 2.56 5.87
16 Fiscal Services 2206.07 3.35 2182.21 2.76 2278.79 2.77 4.43
17 Interest payment & 23620.39 35.88 29160.95 36.98 31394.61 38.10 7.66
servicing of debts

18 Administrative 8497.89 12.90 10166.87 12.89 10818.22 13.13 6.41

Services

19 Pension & 19064.64 28.96 23547.56 29.86 24172.84 29.33 2.66

Miscellaneous
General Services

20 Compensation 5681.04 8.65 6404.27 8.12 6050.54 7.34 -5.52

& Assignment to
Local Bodies and
PRIs

21 Capital Outlay on 365.76 0.55 147.00 0.18 354.56 0.43 141.20

Police
22 Capital Outlay on 838.53 1.27 736.01 0.93 1038.16 1.26 41.05
PWD
23 Internal debt of the 9610.60 14.60 13059.89 16.56 12632.70 15.33 -3.27
State Govt
24 Discharge of 2510.60 3.81 2559.82 3.24 2632.54 3.19 2.84
Internal Debt (Net)

25 Repayment of 1405.21 2.13 1504.89 1.90 1546.00 1.88 2.73

Loans to G.O.I.

26 Loans & Advances 4.80 17.68 0.02 15.68 0.02 -11.31

to Govt. ervants

27 Ways & Means 500.00 0.63 0.10 -99.98

28 Market Loans 7100.00 10.78 1000.00 12.68 1000.00 12.13

Total non- 65825.87 78839.40 82410.92 4.53

developmental
Expenditure

Aggregate 228044.87 242664.83 255719.72 5.38

Expenditure
I + II
29 Developmental Exp 71.13 67.51 67.77
as % of total Exp

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 Fiscal Development and State Finances
66

Percent
Variation
Category of 2020-21 2021-22 2022-23
%* %* %* (2022-23
Expenditure (A/C) (RE) (BE)
over
2021-22)

30 Per Capita 23273 23171 24171 4.31

Development
Expenditure (Rs)

Consolidated Fund 235144.87 253164.90 265719.88 4.96

A/Cs: Accounts, R.E: Revised Estimates, B.E.: Budget Estimates

Note: Per capita is based on the projected population of 2020(6.97cr,) 2021(7.07cr) and 2022(7.17cr).
* Figures under developmental expenditure are percentages to the total developmental expenditure
and figures under non-developmental expenditure are percentages to the total non-developmental
expenditure
Source: Annual Financial Statement 2022-23, Finance Department, GoK (ii)
Volume I of Budget Documents 2022-23, Finance Department GoK.

2.5.3.3 Central Grants

Historically central grants have been major component of state budgets. The composition
of these grants is broadly under three categories. (i) Grants for Centrally Sponsored
Schemes (CSS) (ii) Finance Commission Grants for Rural Local Bodies/Urban Local Bodies/
State Disaster Response Fund. (iii) Other Transfers/Grants to State Legislatures (including
Grants towards National Disaster Response Fund and Compensation for loss of revenue
arising out of implementation of GST). With the increase in the states’ share in the overall
devolution from 32 percent to 42 percent since the 14th Finance Commission period,
and with the restricting of Centrally Sponsored Schemes, there is generally a reduction
in the transfer of central grants to the states. For the state of Karnataka, such grants
are expected to decline from 19.19 percent of total revenue receipts in 2020-21(RE) to
11.73 percent in 2022-23 (BE). Compositionally the decline is sharp in ‘Other Transfers’
(Table 2.10).

Table 2.10: Trends in Central Grants (Rs. crore)

2020-21 2021-22 2022-23

Sl. No. Items
(Accounts) (RE) (BE)
1 FC Grants 5557.00 6522.00 5058.00
(3.55) (3.44) (2.66)
2 Centrally Sponsored Schemes 9851.88 8514.61 11721.01
(6.29) (4.49) (6.17)
3 Other Transfers/Grants to State 14667.03 26899.26 5502.00
Legislatures (9.36) (14.19) (2.90)
4 Total Grants 30075.91 41935.87 22281.01
(19.19) (22.12) (11.73)
5 Total Revenue Receipts 156716.40 189579.26 189887.54
Source: Detailed Estimates of Revenue and Other Receipts 2022-23, Finance Department, GoK
The figures in bracket indicates % to total revenue receipts

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2.5.3.4 Committed Expenditure

Large part of government expenditure is expected to follow an autoregressive process

with near trend growth increase every year. This is largely due to increased share of
committed expenditures in total expenditure. One important indicator to understand
the availability of fiscal space for reviving the growth is understand the share of
committed expenditures in the uncommitted receipts. This is shown in Figure 2.7 for the
case of Karnataka. As the committed expenditures include salaries, pensions, interest,
subsidies, administrative expenditure, devolution to PRIs and ULBs, etc., increase in
this share is expected to squeeze resource for development purpose. At present, in
the case of Karnataka, committed expenditure constitute over 89 percent of total
uncommitted revenue receipts, which is total revenue receipts net of tied grants from
Central Government, for the year 2021-22(RE). Reducing this share is utmost important
for achieving the FRA targets as well as reducing the outstanding liabilities of the state,
which is increasing at a faster pace.

Figure 2.7 : Committed Expenditure as a % Uncommitted Revenue Receipts

120

100 87
85 87 97
77 89
80 79
percentage

60

40

20

0
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22(BE) 2021-22(RE)

Source : (i) Economic Survey 2021-22 Planning Department GoK. (ii) Medium Term Fiscal Plan 2022-26.

2.5.3.5 Economic Classification of Expenditure

To understand the overall economic impact of the Budget proposals, the government
expenditures are classified into various economic categories, and this is in addition to
the functional classification. This classification broadly looks at consumption and capital
expenditures by dividing the total expenditures into three broad sub- headings: final
outlays, transfer payments, and financial investments and loans. For the state of Karnataka,
the trends in these three categories are presented in Table 2.11 for the last three years.
Such classification is especially useful while relating the fiscal policy framework to the
medium-term macro-growth targets as set by respective governments.

As shown in Table 2.11, the state appears to have continued its focus on capital expenditures
to revive the economy. In 2022-23(BE), the state appears to target even larger capital

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68

formation and that augurs well for the durable recovery of the state economy. In terms of
shares, consumption expenditure is about 22.22 percent of the total expenditure during
the current year. As discussed earlier, the share of transfer payments that largely consists
of interest payments and subsidies is expected to be as high as 53.53 percent in the
current year. Another concerning fact here is the acquisition of fixed assets, which is
expected to decline by 28.57 percent in 2022-23(BE).

Table 2.11 : Economic Classification of Expenditure of Karnataka State Budget-2022-23

(Rs. Crore)

Percentage
Sl. 2020-21 2021-22 2022-23 Variation
Description
No. (A/C) (RE) (BE) (2022-23 over
2021-22)
1 Final Outlays 82040.35 95905.92 99126.68 3.36

(a) Government 42910.72 53085.95 54473.07 2.61

consumption
Expenditure

(b) Gross Capital 39129.95 42819.62 44653.36 4.28

Formation

(c) Acquisition of Fixed -0.32 0.35 0.25 -28.57

Assets
2 Transfer Payments 119353.30 124720.76 131228.73 5.22
to the Rest of the
Economy

(a) Current Transfers * 118139.85 123299.47 129245.05 4.82

(b) Capital Transfers 1213.45 1421.29 1983.68 39.57

3 Financial 19007.25 10875.44 14783.22 35.93

Investments and
Loans to the rest of
the Economy

Total Expenditure 220401.22 231501.77 245138.38 5.89

(1+2+3)

*includes interest and subsidy R.E.: Revised Estimates, B.E.: Budget Estimates
Source: An Economic-cum-Purpose Classification of the Karnataka Government Budget 2011-12 to
2022-23, Directorate of Economics and Statistics, GoK

2.5.4. Review of trends in Receipts and Expenditure during April-September 2022.

This section analyses the fiscal situation of the state from April to September of the current
financial year. The summary of state’s financial performance for the first six months of
2022-23 is compared with Budget Estimates of 2022-23 and with the corresponding
period in the previous year (2021-22) which is summarized in Table 2.12. Further, various
components of own tax revenue have been compared and the same is presented in
Table 2.13.

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The total revenue receipt of the state during the first eight months of financial year
2022 - 23 from April to September 2022 is Rs. 100330.00 crore. The state achieved 52.84
percent of its revenue receipts targets for 2022-23 within first six months whereas the
revenue receipts collection during the corresponding period of 2021-22 was at 53.16
percent. The revenue receipts include the state’s own tax revenue of Rs. 75368.00 crore
State’s own non-tax revenue of Rs. 5724.00 crores, the devolution from Government of
India of Rs 13717.00 crore and grants in aid from Government of India of Rs. 5521.00 crore.
Component wise, the government collected 57.15 percent of own tax revenue during
April-September of 2022 of the budget estimates of 2022-23 which is only 53.35 percent
for the same period during 2021-22. Further, the collection of non-tax revenue reached
52.32 percent of the budget estimates in the first six months of the financial year. This is a
growth of 17.06 percent over the previous year. The devolution from Government of India
rose by 44.58 percent during April-September 2022 compared to the corresponding
period of 2021. The own tax revenue as well as own non-tax revenues during April -
September 2022 had increased compared to the corresponding period of 2021 which
shows that the economy is on the recovery path.

State’s own tax revenue includes, among others, the four major state taxes viz. commercial
taxes, excise, motor vehicle taxes and Taxes on stamps and registration. The large
proportion of the own tax revenue is coming from Commercial tax collections. Out of
the total own tax revenue of Rs.75368.00 crore collected during April – September 2022,
Rs.47568.00 crore is from the commercial taxes. The revenue collection from commercial
taxes in first six months of 2022-23 reached 62 percent of budget estimates which is an
increase of 6.1 percent over the achievement made during the corresponding period in
2021-22. State excise collections for first six months of 2022-23 is Rs.14711.00 crore which is
51 percent of the budgeted estimate for the financial year 2022–23 with an increase of 18.7
percent over the achievement made during the corresponding period of 2021-22. Taxes
from motor vehicles during April-Sep 2022 are Rs.4479.00 crores, which is 56 percent of
the budgeted estimates for 2022-23. A rise of 58 percent is seen in collections on motor
vehicle compared to the corresponding period of 2021-22. The revenue collected under
the stamps and registration is Rs 8229.00 crore in the first six months of 2022-23, which
is 55 percent of the budget estimates and an improvement of 38.5 percent over the
achievement made during the corresponding period in 2021-22.

On the expenditure front, both the share of revenue and capital expenditure spent during
first six months of 2022-23 with respect to the budget estimates is 7.38 percent higher
than the corresponding expenditure happened during first eight months of 2021-22.
This suggests the smooth fund flow to the needy sectors of the economy. The revenue
expenditure was spent by 42.43 percent of the budget estimates during April- Sep 2022
and it is 8.86 percent higher to the revenue expenditure during the corresponding
period of 2021. Similarly, April-Sep 2022 witnessed 32.68 percent of capital expenditure
estimated for 2022-23.

Overall, 39.73 percent of the total expenditure estimated for 2022-23 was spent during
April-Sep 2022. This is an improvement of 9.18 percent over the total expenditure made
during the corresponding period in 2021-22. This seems to have been largely supported by
better revenue mobilization. The total receipts during April-Sep 2022 were 52.88 percent
of the budget estimates which is an increase of 9.67 percent over the corresponding
period in 2021-22. Therefore, the experience of the state in the revenue collection and

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expenditure happened during the first six months of 2022-23 indicates that the fiscal
management of the state is satisfactory during 2022-23.

Table 2.12 : Receipts and Expenditure during April-September 2022. (Rs. Crore)

Change
April to % % During
2022-23 over
Sl. No. Item September Achievement Apr-sep to
BE previous
2022- 23 to BE 2022-23 BE 2021-22
year
I Revenue 189888.00 100330.00 52.84 53.16 9.56
Receipts

(i) Own Tax 131883.00 75368.00 57.15 53.35 13.75

Revenues*

(ii) Own Non-tax 10941.00 5724.00 52.32 59.22 17.06

Revenues

(iii) Devolution 29783.00 13717.00 46.06 39.09 44.58

from Centre

(iv) GIA and 17281.00 5521.00 31.95 70.39 -49.52

Contributions

II Capital 89.00 127.00 142.04 19.68 393.13

Receipts
(Non-debt)

(i) Recovery of 71.00 127.00 178.24 33.64 316.40

Loans and
Advances

(ii) Other Non- 18.00 -1.54 -12.03 94.25

Debt Capital
Receipts

III Total Receipts 189977.00 100457.00 52.88 53.13 9.67

(I+II)

Public Debt 72000.00 3153.00 4.38 1.31 237.65

Total Receipts 261977.00 103610.00 39.55 37.96 11.97

including
Public Debt

IV Revenue 204587.00 86798.00 42.43 42.55 8.86

Expenditure

(i) Interest 29395.00 12685.00 43.15 40.87 14.27

Payments
out of IV

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Change
April to % % During
2022-23 over
Sl. No. Item September Achievement Apr-sep to
BE previous
2022- 23 to BE 2022-23 BE 2021-22
year
V Capital 46955.00 155344.00 32.68 34.78 -0.26
Expenditure

(i) Loans and 3382.00 831.00 24.57 49.58 -41.78

Advances
disbursed out
of V

VI Total 251541.00 102143.00 40.61 41.06 7.38

Expenditure
(IV+V)

Internal Debt 14179.00 3421.00 24.13 10.78 117.88

Total 265720.00 105563.00 39.73 39.27 9.18
Expenditure
including
Public Debt

*Own tax revenue is inclusive of GST compensation

Source: Finance Department, GoK

Table 2.13: State’s Own Tax Revenue during April-September 2022 (Rs. Crore)

Growth over
2022-23 April – Sep % to BE April -Sep % To BE
Particulars previous
BE 2022 2022-23 2021 2021-22
year

Commercial 77010.00 47568.00 62 44827.00 59 6.1

Taxes

State Excise 29000.00 14711.00 51 12396.00 50 18.7

Motor Vehicle 8007.00 4479.00 56 2836.00 38 58.0

Taxes

Stamp and 15000.00 8229.00 55 5942.00 47 38.5

Reg Fees

Others 2866.00 380.00 13 257.00 9 48.2

Total 131883.00 75368.00 57 66257.00 53 13.8

(Own Tax
Revenues)

Source: Finance Department, GoK

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2.6 CAPITAL FORMATION BY GOVERNMENT

As expected, the growth rate of value of assets created in 2022-23 was only 4.28 percent.
Large part of the assets creation appear to be undertaken by the government with the
department commercial undertakings investing just about twenty percent of the total
gross capital formation (Table 2.14). But in terms of growth, departmental commercial
undertakings appear to register a very high growth of 6.74 percent and by Government
Administration it is 3.67 percent in 2022-23.

Table 2.14: Capital Formation by the Government of Karnataka 2022-23 (Rs. Crore)

Percent
Sl. 2020-21 2021-22 2022-23 Variation
Description
No. (A/C) (RE) (BE) (2022-23
over 2021-22)

1 Value of Assets Created 39129.53 42819.26 44653.36 4.28

(a) By Departmental Commercial 6425.00 8601.00 9180.56 6.74

Undertakings

(b) By Government 32704.53 34218.26 35472.80 3.67

Administration

2 Change in Stock in
(a) & (b)

Total: Gross Capital 39129.53 42819.62 44653.36 4.28

Formation

Source: Economic cum purpose classification of Karnataka Government Budget 2022-23,

Directorate of Economics & Statistics, Government of Karnataka

a) Resources of the Budget (2020-21 to 2022-23): It may be noted in Table 2.15 that the
size of the state’s Budget has been growing continuously albeit at a slower pace than
the state’s nominal GSDP growth. For the year 2022-23, while the Budget assumes a
nominal GSDP growth of 14.4 percent, the increase in the size of the Budget is about
4.96 percent. In levels, the Budget size in the current year is about Rs 2.66 lakh crore.
In terms of resources for the Budget, as shown in Table 2.15, large part (about two-
thirds) is covered by the state own resources. The state’s own resources cover about
66.40 percent of the total budget size. But it has to be highlighted here that the share
of central assistance appears to decline. It has declined from 6.93 percent in 2020-21
to 6.58 percent in 2021- 22(RE) and 6.50 percent in 2022-23(BE).

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Table 2.15 : Financial Resources of the Budget: 2020-21 to 2022-23 (Rs. Crore)

% Variation in
Sl. 2020-21 2021-22 2022-23 2022-23 (BE)
Items
No. (Accounts) (RE) (BE) over 2021-22
(RE)

1 State Own Resources 134330.33 169164.13 176438.44 4.30

(57.13) (66.82) (66.40)

2 State Borrowings 84527.95 67331.82 72000.46 6.93

(5.95) (26.60) (27.10)

3 Central Assistance* 16286.66 16669.00 17281.01 3.67

(6.93) (6.58) (6.50)

Total 235144.94 253164.95 265719.91 4.96

Source: Budget Documents 2022-23, Finance Department, GoK.

Note: Figures in bracket indicate % to total *Includes grants under CSS and
Finance Commission Grants only.

In terms of financing the budget, as shown in Table 2.16, with the sharp increase in
state’s own resources between 2020-21 and 2021-22 (from 1.34 lakh crore to 1.69 lakh
crore) and further increase to 1.76 lakh crore in 2022-23(BE) , the state had to increase its
total borrowing from Rs. 67331.82 crore in 2021-22 to Rs. 72000.46 crore for 2022-23.With
marginal decline in central grants and with expected increase in own revenues, over and
above the budgeted, the overall borrowings of the state in 2022-23 could be less than the
budgeted level of Rs. 72000.46 crores.

Table 2.16 : Scheme of Financing of the Budget: 2020-21 to 2022-23 (Rs. Crore)

Sl. 2020-21 2021-22 2022-23

Sectors
No. (Accounts) (RE) (BE)
A. State Own Resources

1 Own Tax Revenue 110842.00 136766.00 131883.00

2 Non-Tax Revenue 7894.00 9000.00 10941.00

3 Devolution from Centre 21694.00 27145.00 29783.00

4 Miscellaneous Capital Receipts 45.23 40.00 18.00

5 Contingency Fund (Net) 420.00

6 Public Account (Net) -6490.38 3347.06 4397.07

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Sl. 2020-21 2021-22 2022-23

Sectors
No. (Accounts) (RE) (BE)
7 Opening & closing Balance (Net) 75.87 -7644.04 -654.56

8 Loans & Advances) 269.87 90.84 71.40

Total State Own Resources (1 to 8) 134330.59 169164.86 176438.91

B Borrowings

9 Market Borrowings 69000.00 63100.00 67911.00

10 Negotiated Loans 1413.87 2000.00 1000.10

11 Non Plan Loans 0.04

12 Special Assistance 305.00

13 Loans for EAPs 13809.04 2231.82 3089.36

Total Borrowings (9 to 13) 84527.95 67331.82 72000.46

C Central Grants* 16286.66 16669.00 17281.01

D Rounding off errors while -0.26 -0.73 -0.47

converting lakhs to crore
Total Budget (A+B+C+D) 235144.94 253164.95 265719.91

Source: Budget Documents 2022-23 Finance Department, GoK Includes grants under CSS and Finance
Commission Grants only

a) Inter-sectoral Outlays of the Budget (2020-21 to 2022-23): The expenditure

proposals of the state could depend on the need as well as growth and development
priorities. For the year 2022-23, as there is recovery in the economic activities,
Karnataka has reprioritized the economic sectors that could help reviving the
growth as well as employment opportunities in the state. Some of the crucial
sectors that the state has focused in this year’s Budget are Irrigation, Water supply,
urban development, Welfare of SCs, STs, OBCs, and Minorities, Labour & Labour
Welfare, among other crucial sectors (Table 2.17). All these expenditures should
help in uplift the growth potential of the state as well as support the state’s efforts
in achieving the development goals as prioritized under Sustainable Development
Goals (SDGs).

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Table 2.17: Developmental Outlays by Major Sectors (Rs. crore)

% Change in
Sl. 2020-21 2021-22 2022-23 2022-23 (BE)
Sectors
No. (A/Cs) (RE) (BE) over 2021-22
(RE) total
1 2 3 4 5
I Economic Services
1 Agriculture & Allied 18988.69 17817.91 20531.70 15.23
Activities (Including
Co- operation)
2 Rural Development 9144.02 9159.98 9202.05 0.46
3 Special Area 159.69 218.65 215.01 -1.66
Programme
4 Irrigation and Flood 20618.09 18591.07 20875.71 12.29
Control
5 Energy 14277.18 12197.54 12002.20 -1.60
6 Industry and Minerals 2216.64 1585.96 1636.94 3.21
7 Transport 15561.92 12281.69 12104.61 -1.44
8 Science, Technology & 58.23 35.02 35.30 0.82
Environment
9 General Economic 5257.25 3807.20 4524.57 18.84
Services
Total - I: Economic 86281.70 75695.03 81128.09 7.18
Services
II. Social Services
10 Education, Sports, Art 25483.39 29607.13 32018.21 8.14
& Culture
11 Health 11867.91 14631.84 14368.44 -1.80
12a (a) Water Supply 4707.46 7007.44 7053.20 0.65
12b (b) Housing 2363.48 3141.65 3659.48 16.48
12c (c) Urban 5547.20 5278.34 5684.96 7.70
Development
13 Information and 200.39 227.72 210.37 -7.62
Publicity
14 Welfare of SCs, STs, 7456.59 8596.26 9180.25 6.79
OBCs & Minorities
15 Labour & Labour 586.71 1172.36 754.79 -35.62
Welfare
16 Social Security& 12356.43 12394.19 14376.03 15.99
welfare (incl. Nutrition)

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% Change in
Sl. 2020-21 2021-22 2022-23 2022-23 (BE)
Sectors
No. (A/Cs) (RE) (BE) over 2021-22
(RE) total
1 2 3 4 5
17 Relief on Account of 2315.81 2848.29 1151.78 -59.56
Natural Calamities
18 Other Social Services 340.55 304.16 300.82 -1.10

19 Secretariat Social 47.11 55.03 56.22 2.17

Services
Total - II: Social 73273.01 85264.41 88814.53 4.16
Services
III. General Services 56224.22 67932.75 72166.17 6.23

IV Grant-in-aid and 5681.04 6404.27 6050.54 -5.52

Contribution
V Public Debt 11015.81 14564.78 14178.70 -2.65

VI Loans and Advances 2669.16 2883.71 3381.88 17.28

VII Transfer to 420.00

Contigency Fund
Total : State Budget 235144.94 253164.95 265719.92 5.13

Source: Annual Financial Statement 2022-23, Finance Department, GoK

2.7 SCHEMES IN 2022-23 BUDGET

The state has from time to time introduced various schemes to address the needs of
the regions, sectors, sections, etc., from time to time. However, as most of the schemes
lack sunset clauses, they are expected to continue to exist even after achieving the
scheme’s objectives, thus putting continuous pressure on the state fiscal conditions. This
could also have potential to limit the state’s capacity to address some of the emerging
challenges that may need substantial resources. It may be noted in Table 2.18, there are
about 1856 schemes at present. Within that over 50 percent of schemes are with less
than 10.00 crore allocations. To improve the public delivery mechanism and to ensure
resources for other pressing needs of the state, there is an urgent need to rationalize the
schemes and bring down the number of schemes substantial. The same has also been
recommended by Expenditure Reforms Commission of the state and also the successive
Central Finance Commissions. The State Finance Commission, as and when it is formed,
may relook at these schemes. The state could also look at the recommendations made
by the Expenditure Management Committee (Chaired by Bimal Jalan) and appropriately
rationalize the expenditures.

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Table 2.18: Budget Allocation 2022-23(BE)

% to total
Sl. No. of Fund % to Fund
Range No. of
No. Schemes Allocation Allocation
Schemes
1 Upto one Crore 335 18.05 117.91 0.05
2 Upto to 10 Crore 609 32.81 2833.43 1.25
3 Upto 100 Core 618 33.30 23464.94 10.38
4 More than100 Crore 294 15.84 199552.7 88.31
Total* 1856 100 225968.98 100.00

*Excluding debt servicing Rs. 45573.30 crore Inter account transfers Rs. 5822.36 crore.
Source: Budget Documents 2022-23, Finance Department, GoK.

2.8 DISTRICT SECTOR OUTLAYS FOR THE YEAR 2022-23

Karnataka has been in the forefront in the country in terms of District level planning. As
district being a major implementing agency with respect to execution of social sector
programs, ensuring adequate resources and tracking those resources becomes utmost
important for the state as well as for the nation as a whole. The Government of India’s
Aspirational District scheme is one such initiative to ensure better implementation of
both central and state sector schemes. In this section, a summary of the allocations made
to the districts in Karnataka are presented. Within the district there are three levels of
schemes: ZP schemes, TP Schemes and GP schemes. More than half of the total district
outlay is allocated to TP schemes. In 2021-22(BE), nearly 57 percent of total district outlay
is allocated to TP schemes (Rs. 24763.00 crores out of total of Rs. 42972.00 crore). The
GP schemes consist of about 12 percent while the rest is allocated towards ZP schemes
(Table 2.19).

Table 2.19 : District Outlay for the year 2022-23 (B.E) (Rs. Crore)

Z.P TP GP
District % % % Total %
Schemes Schemes Schemes

Bangalore 584.85 4.43 977.08 3.95 1561.93 3.63

(Urban)
Bangalore 178.53 1.35 422.37 1.71 600.90 1.40
(Rural)
Bagalkote 409.01 3.10 890.19 3.59 1299.20 3.02
Belgaum 908.64 6.88 1871.77 7.56 2780.41 6.47
Bellary 260.19 1.97 443.26 1.79 703.45 1.64
Bidar 377.17 2.86 823.97 3.33 1201.14 2.80
Bijapur 519.11 3.93 1111.74 4.49 1630.85 3.80
Chamarajanagar 205.02 1.55 395.43 1.60 600.45 1.40
Chikkaballapur 210.62 1.59 558.42 2.26 769.04 1.79
Chickmagalore 294.04 2.23 574.87 2.32 868.91 2.02
Chitradurga 429.46 3.25 788.13 3.18 1217.59 2.83

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Z.P TP GP
District % % % Total %
Schemes Schemes Schemes

Dakshina 330.14 2.50 602.08 2.43 932.22 2.17

Kannada
Davangere 377.15 2.86 734.00 2.96 1111.15 2.59
Dharwad 358.92 2.72 637.68 2.58 996.60 2.32
Gadag 274.08 2.08 475.11 1.92 749.19 1.74
Gulbarga 523.65 3.96 1167.63 4.72 1691.28 3.94
Hassan 417.03 3.16 850.36 3.43 1267.39 2.95
Haveri 358.37 2.71 740.98 2.99 1099.35 2.56
Kodagu 151.80 1.15 198.55 0.80 350.35 0.82
Kolar 251.62 1.91 651.94 2.63 903.56 2.10
Koppal 288.75 2.19 649.57 2.62 938.32 2.18
Mandya 341.17 2.58 701.56 2.83 1042.73 2.43
Mysore 474.20 3.59 996.23 4.02 1470.43 3.42
Raichur 337.47 2.55 858.93 3.47 1196.40 2.78
Ramanagar 210.67 1.59 446.36 1.80 657.03 1.53
Shimoga 392.87 2.97 827.50 3.34 1220.37 2.84
Tumkur 561.35 4.25 1213.55 4.90 1774.90 4.13
Udupi 212.47 1.61 374.67 1.51 587.14 1.37
Uttar Kannada 338.55 2.56 756.69 3.06 1095.24 2.55
Yadgir 221.59 1.68 511.65 2.07 733.24 1.71
Lump sum – ZP 2166.61 16.40 1887.96 7.62 5000.81 9053.38 21.07
Grand Total 13208.29 100.00 24762.97 97.49 5000.81 100.00 42972.07 97.98

Source: Budget Documents of Zilla Panchayaths, 2022-23, Finance Department, GoK.

2.9. PRODUCTIVE EXPENDITURE

The Productive expenditure include expenditure on scholarships /subsidies /SDP /

other programmed expenses etc., The Budget for 2022-23 is Rs. 265719.91 crore out
of which Productive Expenditure is Rs.128806.93 crore (48%) and Administrative
expenditure (Salary/Pension/Debt servicing etc) is Rs.136912.98 crore (52%). Productive
Expenditure is classified into two categories (i) Expenditure towards Beneficiary Oriented
Schemes (Rs.45055.32 crore (37%)) (ii) Infrastructure related schemes (Rs. 81751.61 crore
(63%)). There are 810 schemes related to Productive Expenditure out of which 337 are
Beneficiary Oriented Schemes and 473 are Infrastructure related schemes. An abstract
on Department-wise classification of Productive Expenditure into Beneficiary Oriented
and Infrastructure related schemes is give in the following Table 2.20.

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Table 2.20: Department wise Productive Expenditure of 2022-23 (BE) (Rs. in crore)

Beneficiary Infrastructure
Total
Oriented Related
Sl.
Department
No. No. of No. of No. of
Amt. Amt. Amt.
Schemes Schemes Schemes
1 Agriculture 22 5231.10 17 875.04 39 6106.14

2 Horticulture 15 961.30 7 211.88 22 1173.18

3 Animal 19 1475.62 9 273.56 28 1749.18

Husbandry &
Fisheries
4 DPAR 2 7.00 2 7.00

5 Home 4 15.60 14 524.73 18 540.33

6 Transport 12 1327.14 5 208.51 17 1535.65

7 Infrastructure 1 2.00 1 2.00

8 RDPR 2 1280.00 22 9856.00 24 11136.00

9 Forest & 1 0.31 5 192.05 6 192.36

Ecology
10 Co-operation 3 1281.63 6 250.47 9 1532.10

11 Welfare of SCs 29 2717.14 23 1682.74 52 4399.88

12 Welfare of STs 18 764.86 15 362.57 33 1127.43

13 Welfare of 19 1645.49 15 588.34 34 2233.82

OBCs
14 Welfare of 9 225.39 15 1209.52 24 1434.91
Minorities
15 WCD 53 4526.00 24 219.55 77 4745.55

16 Information & 2 3.37 6 180.30 8 183.67

Publicity
17 Tourism 3 132.11 3 132.11

18 S&Y Empt 3 33.00 10 142.76 13 175.76

19 Food & Civil 6 2847.94 7 42.27 13 2890.21

Supps.
20 Revenue 18 9553.26 3 222.17 21 9775.43

21 IT& BT 1 1.00 3 85.00 4 86.00

22 Housing 6 3013.00 6 529.49 12 3542.49

23 Higher 7 73.38 53 5480.53 60 5553.91

Education

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Beneficiary Infrastructure
Total
Oriented Related
Sl.
Department
No. No. of No. of No. of
Amt. Amt. Amt.
Schemes Schemes Schemes
24 Primary & 12 3422.08 37 22830.75 49 26252.83
Secondary
Education
25 Commerce & 9 388.35 6 250.57 15 638.92
Industries
26 Urban 2 21.17 13 6697.84 15 6719.01
Development
27 PWD 7 4256.00 7 4256.00

28 Water 1 6.92 1 6.92

Resources
29 Medical 25 2366.15 36 1474.59 61 3840.73
Education
30 Health & 23 3717.64 55 6351.59 78 10069.23
Family welfare
31 Labour 3 37.51 7 64.91 10 102.42

32 Skill 6 68.05 20 807.20 26 875.25

Development
33 Energy 1 0.01 2 12000.81 3 12000.82

34 Kannada & 5 54.85 1 0.44 6 55.29

Culture
35 Planning 12 3694.24 12 3694.24

36 Law 2 3.00 5 37.18 7 40.18

Grand Total 337 47055.32 473 81751.61 810 128806.93

Source : Budget Documents 2022-23, Finance Department, GoK

2.10 ASSET MONETIZATION

Asset Monetization is the process of creating new sources of revenue by unlocking the
economic value of under utilized public assets. Similar to Govt. of India, the State may
also need to look at asset monetization of some of the public sector entities under the
State Government (Table 2.21).
Table 2.21 : Details of Sector-wise Asset Monetization

Sector Entities No. of Assets Value in Crore % Value

Roads & Transportation KRDCL/KSRTC/ 806 10413.00 47

NWRTC
Power Generation KPCL 55 4222.00 19

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Sector Entities No. of Assets Value in Crore % Value

Power Transmission KPTCL 2 1567.00 7

Power Distribution GESCOM/ 1066 1361.00 6
HESCOM/
BESCOM/
MESCOM
Ware housing Karnataka State 202 1636.00 7
Ware housing
Corporation
Industries KEONICS/KSIDC/ 1116 2856.00 13
Others
Other Rural Estate KSFC/RGRHCL/ 74 113.00 1
Others
Total Value 3321 22168.00

Source : Economic Survey 2021-22, Planning Department, GoK.

2.11 SUSTAINABLE DEVELOPMENT GOALS (SDGs)

As per SDG India Index Report 2020-21,in the following indicators of SDGs, the State is
lagging behind when compared to best performing States (Table 2.22).

Table 2.22 : Poor performing Indicators

Name of the Scheme which will

Indicator Karnataka Best State
address the indicators
% Households living in 2 0.3 Kerala Vajpayee Urban Housing Scheme
Katcha houses (2.0)
Pradhan Mantri Awas Yojana-Urban
Ashraya-Basava Vasathi
D.Devraj Urs Housing Scheme
Dr. B.R.Ambedkar Nivas Scheme
CSS-Central Share-Pradhan Mantri
Awas Yojane Grameena

% Children who are 32.5 19.6 Goa SNP-Central Share

stunted (32.50)
SNP-State Share
CSS-State Share-Pradhana Mantri
Maatru Vandana Yojane

% Children who are 32 18.7 Kerala SNP-Central Share

underweight (32.00)
SNP-State Share
CSS-State Share-Pradhana Mantri
Maatru Vandana Yojane

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Name of the Scheme which will

Indicator Karnataka Best State
address the indicators
% pregnant women 45.4 22.6 Kerala CSS-State Share-Pradhana Mantri
aged 15-49 who are Maatru Vandana Yojane
anemic(45.4)
CSS-Central Share-Scheme for
Adolescent Girls (SAG)
CSS-State Share-Scheme for
Adolescent Girls (SAG)

Gross Value added in 0.64 4.2 Goa CSS-Central Share-Rashtriya Krishi

Agriculture per worker Vikas Yojane (RKVY)
(0.64 lakh)
CSS-State Share-Rashtriya Krishi
Vikas Yojane (RKVY)

MMR (92.0) 92 43 Kerala CSS-Central Share-National Health

Mission (Rural)

CSS-State Share-National Health

Mission (Rural)

CSS-Central Share-National Urban

Health Mission (NUHM)

CSS-State Share-National Urban

Health Mission (NUHM)

Doctors/Nurses/ 70 115 Kerala CSS-Central Share-National Health

Midwives per 10,000 Mission (Rural)
population (70)
CSS-State Share-National Health
Mission (Rural)
CSS-Central Share-National Urban
Health Mission(NUHM)
CSS-State Share-National Urban
Health Mission(NUHM)

Disabled children 1.07 1.48 Kerala CSS-State Share-Samagra

completed Secondary Shikshana Abhiyana- Karnataka
School education
CSS-Central Share-Samagra
(1.07 lakh)
Shikshana Abhiyana- Karnataka

Gross Enrolment in 10.8 17.88 Tamil Nadu CSS-Central Share-Rashtriya

Higher Education Ucchatar Shiksha Abhiyana
(10.8 lakh)
CSS-State Share-Rashtriya
Ucchatar Shiksha Abhiyana

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Name of the Scheme which will

Indicator Karnataka Best State
address the indicators
Female Labour Force 0.34 0.55 Andhra CSS-Central Share-Mahatma
Participation Rate(0.34) Pradesh Gandhi National Rural
Employment Assurance Scheme
CSS-State Share-Mahatma Gandhi
National Rural Employment
Assurance Scheme
CSS-Central Share-National Urban
Livelihood Mission
CSS-State Share-National Urban
Livelihood Mission
CSS-Central Share-National Rural
Livelihood Mission (NRLM)
CSS-State Share-National Rural
Livelihood Mission (NRLM)
Crimes against women 42.5 15.6 Tamil Nadu Crime and Criminal Tracking
per 10 lakh population Network and systems(CCTNS)
(42.5)
CSS-Central Share -Safe City
Project
CSS-State Share -Safe City Project
% of Female 20.07 30.09 Andhra Agricultural inputs and Quality
Operational land Pradesh Control
holdings(20.07)
% Rural population 59.47 100 Telangana CSS-Central Share-Jal Jeevan
getting safe and Mission (Rural Water Supply
adequate drinking Scheme)
water within premises
CSS-State Share-Jal Jeevan Mission
through PWS(59.47)
(Rural Water Supply Scheme)
Rural Water Supply Scheme
including Jaladhare
% employees in non 38.5 17.3 Arunachal Enforcement of Labour Laws
agriculture sector Pradesh
without any social
security benefits (38.5%)

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84

Name of the Scheme which will

Indicator Karnataka Best State
address the indicators
Unemployment Rate 3.9 2.6 Chhittsagarah CSS-Central Share-Mahatma
(3.90) Gandhi National Rural
Employment Assurance Scheme
CSS-State Share-Mahatma Gandhi
National Rural Employment
Assurance Scheme
CSS-Central Share-National Urban
Livelihood Mission
CSS-State Share-National Urban
Livelihood Mission
CSS-Central Share-National Rural
Livelihood Mission (NRLM)
CSS-State Share-National Rural
Livelihood Mission (NRLM)
Labour force 56.6 72.1 Himchal CSS-Central Share-Mahatma
participation rate Pradesh Gandhi National Rural
(56.60) Employment Assurance Scheme
CSS-State Share-Mahatma Gandhi
National Rural Employment
Assurance Scheme
CSS-Central Share-National Urban
Livelihood Mission
CSS-State Share-National Urban
Livelihood Mission
CSS-Central Share-National Rural
Livelihood Mission (NRLM)
CSS-State Share-National Rural
Livelihood Mission (NRLM)
Ease of doing business 7.82 52.4 Andhra IT Policy
(Feed back score-7.82) Pradesh
Startup Policy
Manufacturing 11.74 20.84 Gujrat Assistance to MSMEs and other
employment as Expenses
a percent of total
Subsidized Industrial Plots for SC
employment
and STs
Internet subscribers per 69.35 84.32 Punjab IT Policy
100 persons(69.35)
Startup Policy
Mobile connections per 100.28 177.45 Goa IT Policy
100 persons(100.28)
Startup Policy
Manufacturing GVA 203966 510650 Gujrat Assistance to MSMEs and other
(2019-20)- Rs. Cr Expenses
Subsidized Industrial Plots for SC
and STs
Transgender labour 0.59 1.39 Arunachal Rehabilitation of Transgenders
force participation rate Pradesh
to male labour force
participation rate (0.59)

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 Fiscal Development and State Finances
85

Name of the Scheme which will

Indicator Karnataka Best State
address the indicators
Rate of total crimes 7.7 0 Arunachal Crime and Criminal Tracking
against STs per lakh Pradesh Network and systems(CCTNS)
population (7.70)
CSS-Central Share -Safe City
Project

CSS-State Share -Safe City Project

Rate of total crimes 14.4 0.2 J&K Crime and Criminal Tracking
against SCs per lakh Network and systems(CCTNS)
population (14.40)
CSS-Central Share -Safe City
Project
CSS-State Share -Safe City Project
Installed Sewage 31.92 115.76 Haryana CSS-Central Share-Mukhya Mantri
treatment capacity as a Nairmalya Yojane (Swaccha Bharat)
% of sewage generated
CSS-State Share-Mukhya Mantri
in urban areas (31.92)
Nairmalya Yojane (Swaccha Bharat)

% of wards with 65.33 100 Himchal CSS-Central Share-Mukhya Mantri

100 percent source Pradesh Nairmalya Yojane (Swaccha Bharat)
segration (65.33)
CSS-State Share-Mukhya Mantri
Nairmalya Yojane (Swaccha Bharat)

% Urban households 0.5 0 Goa Vajpayee Urban Housing Scheme

living in Katcha houses
Pradhan Mantri Awas Yojana-Urban
(0.50)
Ashraya-Basava Vasathi
D.Devraj Urs Housing Scheme
Dr. B.R.Ambedkar Nivas Scheme

Deaths due to road 12.17 5.73 West Bengal Transport Welfare and Road Safety
accidents in urban
areas per lakh
population (12.17)

% of Municipal Solid 64.1 90 Madhya CSS-Central Share-Mukhya Mantri

Waste Processed Pradesh Nairmalya Yojane (Swaccha Bharat)
against generated
CSS-State Share-Mukhya Mantri
(64.10)
Nairmalya Yojane (Swaccha Bharat)

% Hazarodous waste 54.79 99.19 Rajsthan CSS-Central Share-Mukhya Mantri

recycled to total Nairmalya Yojane (Swaccha Bharat)
generated (54.79)
CSS-State Share-Mukhya Mantri
Nairmalya Yojane (Swaccha Bharat)

Plastic Waste generated 4.17 0.51 Himchal Implementation of Measures to

per 1000 persons (4.17 Pradesh Control Air Pollution and Other
tonnes per yr) Activities

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 Fiscal Development and State Finances
86

Name of the Scheme which will

Indicator Karnataka Best State
address the indicators
% use of Nitrozen 52.62 0 Arunachal Organic Farming and Millets
Fertilisers (52.62) Pradesh Programmes

Number of human 10.24 2.22 Rajsthan State Share to State Disaster

lives lost per one cr Response Fund
population due to
extreme weather (10.24)

Disability adjusted life 2871 1436 Arunachal State Share to State Disaster
Yrs rate attributed to Pradesh Response Fund
Air pollution per lakh
population (2871)

Disaster preparedness 18 27.5 Maharastra State Share to State Disaster

score as per Disaster Response Fund
resilence Index (18.0)

% Area developed 33 63.9 West Bengal CSS-Central Share-Blue Revolution/

under aquaculture Integrated Development and
Management of Fisheries
CSS-State Share-Blue Revolution/
Integrated Development and
Management of Fisheries

% increase in area 0 5.26 Maharastra CSS-State Share-Implementation

under mangrowers(0.0) & Management Action Plan for
Mangroves

% increase in area of 0.14 -16.69 Uttar Pradesh Afforestation on Forest Areas

decertification (0.14)
Flexi Fund
Social Forestry
Afforestation in Other Areas

% degraded area to 27.48 3.15 Punjab Afforestation in Other Areas

total land area
Distribution of Saplings for
(27.48)-lakh hectars
Afforestation of Non-Forest Areas

Forest and Tree 23.37 80.64 Arunachal Tree Park Program

cover as a% of total Pradesh
geographical area
(23.37)

Courts per lakh 1.12 3.25 Goa CSS-Central Share-Constuction

population (1.12) of Court Buildings and Judicial
Officers Residential Buildings
CSS-State Share-Constuction
of Court Buildings and Judicial
Officers Residential Buildings

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87

Name of the Scheme which will

Indicator Karnataka Best State
address the indicators
Number of victims 2.82 0.32 Gujrat Police Establishment in Existing
under Human Districts
trafficking per 10 lakh
CSS-Central Share -Safe City
population (2.82)
Project
CSS-State Share -Safe City Project

Cognizable crimes 32.2 16.1 Andhra Police Establishment in Existing

against children per 10 Pradesh Districts
lakh population (32.2)
CSS-Central Share -Safe City
Project
CSS-State Share -Safe City Project

Reported Murders per 2.00 0.9 Kerala Police Establishment in Existing

lakh population (2.0) Districts

2.12 FISCAL CHALLENGES OF THE STATE AND WAY FORWARD

The fiscal situation in the state of Karnataka has come under pressure similar to all India
trends. However, with some prudent fiscal management, the state could ensure that
the fiscal deficit has not crossed 3.5 percent of GSDP. However, following the trends in
outstanding liabilities (which is expected to increase to 27 percent by 2025-26), it appears
that the medium-term fiscal risk is for real. This could put pressure on the quality of
expenditures in the state in the coming years. In addition to this, there are other challenges
that the state is expected to address in the coming years to achieve one trillion dollar
economy by 2026-27. They are as follows.

Ensuring quality of expenditure: As seen in the Medium-Term Fiscal Plan – 2022-26, it

is very clear that the state that had experienced surplus on revenue account, has started
running revenue deficit of over 1 percent and this is expected to continue in the medium
term. While this is against the FRA, the state needs to undertake hard decision with regard
to rationalisating of some of the revenue expenditures. This could have implications on
the outstanding liabilities in the medium term. Further, as RBI Monetary Policy Report
in April 2019 suggest, the size of states’ revenue expenditure multiplier is 0.82 compared
to its capital expenditure multiplier of 2, it would be prudent for the state to adopt the
expenditure switching mechanism to improve the potential GSDP of the state.

Improving efficiency of public expenditures: With the hard budget constraints, one
way to address this issue is to ensure maximum outcomes of the public expenditures.
For this, the state needs to focus on the enhancing public expenditure efficiency by
adopting input-output outcome frame work on the lines of NITI Aayog. The State has
productive expenditure (programme expenditure) of 48 percent, and admin related
expenditure(salary/pension/debt servicing) of 52 percent. It is required to reduce admin-
related expenditure and increase the productive expenditure to improve the efficiency
of expenditure. There is a large scope for the state of Karnataka to improve both input as
well as output efficiency especially in the social sector. For this, there is a need to adopt
input-output-outcome framework, at the district level, and correspond with the district
level governance that could ensure better public delivery mechanism.

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 Fiscal Development and State Finances
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Ensuring flow of resources for SDGs: With the current budget size of about Rs 2.66 lakh
crore, it could be understandable the extent the SDG needs are going to put pressure
on the government finances. It is very opt time to think about sources of SDG financing,
its impact on the fiscal conditions, as well as its impact on the other macroeconomic
conditions. In a way, the time is very conducive to work on SDG-consistent macro
frameworks that take a little longish perspective up to 2030. Without such exercise, the
realization of such humongous target could be very limited. The State is also localizing
SDGs to create awareness about SDGs at GP/TP/ZP level and achieve SDGs by 2030.

Rationalization of various schemes: Karnataka currently has over 1856 schemes.

While allocating resources could be one issue, management of such a large number of
schemes could limit the administration capabilities and reduce the efficiency of those
expenditures sharply. The Central Government has taken an exercise to bring down the
Centrally Sponsored Schemes substantially. As was done by the Centre, rationalization of
these schemes and bringing down to manageable level may be an utmost priority.

Rationalization of subsidies: The subsidies in Karnataka are higher than any comparable
states and within that non-merit component appear to be larger. Quick rationalization
of non-merit subsidies is one clear way for freeing more resources for addressing growth
and development objectives.

Ways to improve revenue sources: With the decline in the share of state in the central
government devolution plan and with GST in place, the pressure on state’s own tax
revenue has increased manifolds. Further, with the uncertainty regarding extension of
GST compensation after June 2022 and with decline in the grants-in-aid, the state is in
dire need to look for alternative sources of revenues. One way that the state could do is
to improve the tax administration through use of IT services to improve the buoyancy.

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 Fiscal Development and State Finances
89

APPENDIX 2.1

Trends in Revenue and Capital Receipts in Karnataka

(Rs. in Crore)

State’s Share in Total Total Total

Total Tax Aggregate
Year Own Tax Central Non-Tax Revenue Capital
Receipts Receipts
Revenues Taxes Receipts Receipts Receipts*

2010-11 38473.13 9506.30 47979.43 3358.28 58206.23 12215.64 70421.86

2011-12 46476.01 11074.99 57551.00 4086.86 69806.27 15317.53 85123.80

2012-13 53753.56 12647.14 66400.70 3966.11 78176.22 16878.51 95054.73

2013-14 62603.54 13808.27 76411.81 4031.89 89542.52 19533.42 109075.94

2014-15 70180.30 14654.14 84834.44 4688.24 104142.13 21994.02 126136.15

2015-16 75566.45 23967.07 99533.52 5355.04 118817.31 22337.72 141155.03

2016-17 82956.21 28759.86 111716.07 5794.53 133213.79 32405.92 165619.71

2017-18 93376.34 31751.98 125128.32 6476.53 146999.63 35384.55 182384.18

2018-19 107667.09 35811.28 143478.52 6773.00 164978.52 42399.55 207461.74

2019-20 116879.29 30899.42 147778.68 7681.47 175442.79 42952.25 218395.04

2020-21 110862.79 21673.11 132535.90 7893.84 156716.41 71252.66 227969.07

2021-22 136775.71 27134.94 163910.65 9000.00 189579.26 69729.72 259308.98

(RE)
2022-23 131882.75 29783.21 161665.96 10940.56 189887.53 75486.84 265374.37
(BE)

RE=Revised Estimates, BE=Budget Estimates

* Figures Capital Receipts (i) includes Public Account (Net) and Contigency Fund (Net) (ii) excludes Ways
and Means and Market Borrowings.
Source: Annual Financial Statements-2022-23, Finance Department GoK.
Economic Survey 2020-21 and 2021-22 Planning Department, GoK

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 Fiscal Development and State Finances
90

APPENDIX 2.2

Trends in Developmental and Non-Developmental Expenditure in Karnataka

(Rs. in Crores)

Non-
Developmental
Non- Developmental
Developmental Expenditure Aggregate
Year Developmental Expenditure
Expenditure as % of Total Expenditure
Expenditure as % of Total
Expenditure
Expenditure

2010-11 51626.38 72.74 19344.94 27.26 70971.32

2011-12 60929.69 72.14 23533.97 27.86 84463.66

2012-13 68067.53 71.66 26922.26 28.34 94989.79

2013-14 76328.45 69.99 32729.25 30.01 109057.70

2014-15 88904.73 70.44 37312.82 29.56 126217.55

2015-16 100440.69 71.12 40794.06 28.88 141234.75

2016-17 123989.38 74.94 41455.39 25.06 165444.77

2017-18 136285.13 73.09 50177.82 26.91 186462.95

2018-19 154527.55 74.61 52584.47 25.39 207112.02

2019-20 157822.41 72.49 59903.41 27.51 217725.82

2020-21 162219.00 71.13 65825.87 28.87 228044.87

2021-22(RE) 163825.43 67.51 78839.40 32.49 242664.83

2022-23(BE) 173308.80 67.77 82410.92 32.23 255719.72

RE=Revised Estimates, BE=Budget Estimates

Source: Budget Documents 2022-23, Finance Department, GoK.
Economic Survey 2020-21 and 2021-22, Planning Department, GoK

Karnataka Economic Survey 2022-23

 3
CHA PT E R

INVESTMENT AND EXPORTS

3.1 INTRODUCTION

Promotion of private investment has been high on the agenda of Government of

Karnataka. The concerted efforts by the State have resulted in a large-scale inflow of
investments during the past few years. The State has also developed a distinct policy
framework for guiding investments and set up dedicated institutions that streamline
the approval processes. Karnataka offers wide range of fiscal and financial incentives
to investors even while nurturing the supporting infrastructure such as technical
institutions, laboratories, and research institutions. The State’s information technology
and biotechnology sectors have attracted significant investments and contribute to
significant exports from the country in these sectors. Exports contributed about 40%
of the State’s Gross State Domestic Product (GSDP) with electronic, computer software
and biotechnology contributing a major portion of the exports. Karnataka’s economic
growth can be accelerated further with a continued emphasis on promotion of
private investment, ease of doing business ecosystem and enhancement of industrial
competitiveness.

3.2 INVESTMENT IN KARNATAKA

Karnataka is a pioneer in introducing many reform initiatives adopted in India and has
been highly proactive in attracting private investment. Lucrative policies incentivizing
private domestic and foreign investments are framed from time to time. These policies
along with an investment friendly climate in the State have helped the State attract large-
scale private investment, especially in Information and Communication Technology (ICT)
and Biotechnology (BT) sectors. Karnataka Biotechnology and Information Technology
Services (KBITS), established under the Department of IT, BT and S&T by the Government
of Karnataka, is specially meant for the promotion and facilitation of investments in the
State. On 26th April, 2018, KBITS was renamed as Karnataka Innovation and Technology
Society (KITS) to enable promote and drive innovation and entrepreneurship in the state
of Karnataka.

Karnataka’s vast and diversified resource base has emerged as a reputed investment
destination for investors worldwide. The State was the first to enact the Industrial
Facilitation Act to help investors. Karnataka has a single window which acts as a one-
stop-shop for investments in the State. The specific advantages for Karnataka include i)
Good law and order situation prevailing in Karnataka which is conducive to foreign direct
investments ii) Abundant availability of highly skilled manpower iii) Karnataka ranks
among the top 5 industrially developed States in India iv) The State provides excellent
logistic support and connectivity to the investors and v) The State provides one of the
biggest and fast expanding markets in the Country.

Karnataka’s investor-friendly and responsive administration has worked towards easing

administrative procedures and implementing policy measures for faster and smoother
industrial growth. Some of the significant measures are as follows:

oo An investor-friendly responsive administration

oo The State-level single window clearance committee and the State high level clearance
committee facilitate clearance of proposals in a speedy manner.
 Investment and Exports
92

oo Sector-specific industrial zones and SEZs that match the natural resources and
capabilities of a region with the industry requirements.
oo Creation of World-class, ready-to-use infrastructure through investments in power,
roads, water, warehouse and logistic facilities, connectivity through rails and ports
etc.
oo The State Government’s packages of incentives and concession for new industrial
investments announced from time to time
oo Special focus on skill development to enhance generation of technical manpower
oo Excellent telecommunication network and optical fibre connectivity throughout the
State
oo Exemption from State taxes for all purchases from domestic tariff area

Investment flows into Karnataka

Karnataka Udyog Mitra (KUM) is a single contact point for all investors who are looking
at setting up enterprises/business in Karnataka. As the nodal agency, its role is to facilitate
investments and execute initiatives to enable a smooth transition from the stage of
receiving investment proposals to the eventual implementation of the project. It acts as
a secretariat for State Level Single Window Clearance Committee (SLSWCC) for projects
above Rs. 15 crore up to Rs. 500 crore and the State High Level Clearance Committee
(SHLCC) for projects above Rs. 500 crore. About 393 Investment projects worth Rs. 2.37
lakh crore has been approved with the generation of employment to the tune of 1.95 lakh
during April 2022 to December 2022. The details of the projects approved by SLSWCC
and SHLCC from April 2022 to December 2022 are shown in Table 3.1.

Table 3.1: Projects approved by SLSWCC and SHLCC from April 2022 to December 2022

No. of approved Projects Investment Rs.in crore

Additional
No of Investment Investment Employ-
Committee No of Total ment
Additional Total from New from earlier
New Investment in Nos
Investment Projects Projects approved
projects Rs. crore
projects Rs. crore projects
Rs. crore
SLSWCC 335 20 355 15537.68 1342.89 16680.57 57870
SHLCC 21 17 38 197500.72 22767.53 220268.25 137282
Total 356 37 393 213038.40 24110.42 236948.82 195152

Source: Karnataka Udyog Mitra, Bangalore

Foreign Direct Investment(FDI) Inflow in Karnataka

Karnataka account for a significant share in the total FDI inflows in India. The state
attracted USD 39.36 billion FDI equity inflow over the period October 2019 to September
2022 which is 23% of the national share. The year wise FDI inflow breakup for the state of
Karnataka is given in the Table 3.2.

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 Investment and Exports
93

Table 3.2: Foreign Direct Investment Inflow in Karnataka

FDI Equity inflow Karnataka (USD billion) Karnataka (Rs. crore)

FY22-23 (April-Sep) 5.33 41,678
FY21-22 22.07 1,63,795
FY 20-21 7.6 56,884
Cumulative 39.36 2,93,106
(Oct 2019 – Sep 2022)

States/UTs attracting FDI inflows from April 2022 to September 2022 are given in
Table 3.3. The total FDI inflows to the Karnataka State (Rs. 41677.56 crore) stand second
position on FDI inflows among 26 Indian States (Rs. 2,10,156.27 crore) from April 2022 to
September 2022.

Table 3.3: State-wise FDI equity Inflow during financial year 2022-23 from April 2022 to
September 2022

Sl. Amount of FDI Equity Inflow

State Name %age with Inflow
No. (In Rs. crore) (In USD million)
1 Maharashtra 62425.12 7999.95 29.73
2 Karnataka 41677.56 5329.27 19.80
3 Delhi 35486.04 4538.52 16.87
4 Gujarat 26866.48 3472.79 12.91
5 Haryana 13639.23 1736.65 6.45
6 Tamil Nadu 12271.71 1563.68 5.81
7 Telangana 7578.19 969.21 3.60
8 Rajasthan 5594.36 712.32 2.65
9 Uttar Pradesh 1513.61 193.74 0.72
10 Andhra Pradesh 1199.60 151.94 0.56
11 West Bengal 581.79 73.40 0.27
12 Kerala 481.69 61.43 0.23
13 Madhya Pradesh 217.84 27.88 0.10
14 Odisha 162.98 20.54 0.08
15 Himachal Pradesh 152.52 19.46 0.07
16 Punjab 133.44 17.12 0.06
17 Jharkhand 42.23 5.45 0.02
18 Puducherry 34.55 4.41 0.02
19 Uttarakhand 21.56 2.82 0.01
20 Bihar 20.67 2.62 0.01
21 Chandigarh 18.50 2.36 0.01

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 Investment and Exports
94

Sl. Amount of FDI Equity Inflow

State Name %age with Inflow
No. (In Rs. crore) (In USD million)
22 Assam 13.84 1.78 0.01
23 Chhattisgarh 8.97 1.12 0.00
24 Goa 8.14 1.03 0.00
25 Jammu And Kashmir 5.47 0.70 0.00
26 Ladakh 0.20 0.03 0.00
Gross-Total 2,10,156.27 26,910.20

*Total FDI inflow includes equity inflow, equity capital of unincorporated bodies, re-invested earnings, and
other capital. Sector/State/Country-wise details are maintained only for equity component of FDI inflow.

Investment in Information Technology (IT)

The IT sector in Karnataka has become one of the primary growth drivers of Karnataka’s
economy. Information Technology Sector in Karnataka is primarily concentrated in
Bangalore. Lately, other parts of Karnataka have also seen a growth in IT-related activities.

Bangalore was the first city in India to set up a Satellite Earth Station for high speed
communication services to facilitate software exports in 1992. The State made a giant
leap in the Information Technology sector by establishing the Country’s first extended
facility of the international gateway and network operations centre at the Software
Technology Park of India (STPI) in the Electronic City. Karnataka is home to over 5500+ IT/
ITES companies, ~750 MNCs contributing to over USD 58 billion of exports, giving direct
employment to over 12 lakh professionals and creating over 31 lakh indirect jobs. The
industry contributes to over 25% of the State’s GDP. The share of Karnataka in Information
Technology exports is nearly 40% of the country’s exports of USD 155 billion.

3.3 SCHEMES AND POLICY SUPPORT

Karnataka IT Policy 2020-25

The Government has brought out new IT Policy-2020, where in several incentives are
being offered to new IT / ITeS and other knowledge-based sectors to set up their facility
in Tier 2/3 Cities across Karnataka through incentives on land, stamp duty and taxes.

Karnataka Start-up Policy 2015-2020

The Karnataka Government’s efforts to facilitate entrepreneurship in the state can be

traced back to 2015, when “Karnataka Start-up Policy 2015-2020” was launched with a
vision to stimulate the growth of 20,000 tech start-ups by 2020. The State Government
launched several start-up-focused funds that have a corpus of USD 47.3 million. Over
14,000 people have signed up on the Start-up Karnataka Portal as Start-ups, Mentors,
Incubators, Investors, Institutes etc., and more than 2500 start-ups have been certified by
Karnataka Start-up Cell so far, of which around 720 companies have been funded under
Idea2PoC/ Elevate Grant-In-Aid Seed Funding scheme.

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 Investment and Exports
95

Incubation Infrastructure

Government of Karnataka has signed MoUs with partners to set up incubators and
facilitate start-ups with relevant infrastructure. Government has set up 1.25 lakh sq. ft.
area of K-Tech Innovation Hubs in various parts of Karnataka managed by NASSCOM,
IAMAI and Bangalore Bio-innovation Centre (BBC).

K-Tech Innovation Hub by NASSCOM

The Government of Karnataka in line with its i4 policy has set up a K-Tech Innovation Hub
by NASSCOM, which is located in K-Wings, HSR Layout, Bengaluru.

Achievements

oo 356 Startups have been incubated physically from 2013 to till date and 32 Startups
have been incubated for the FY 22-23
oo 2400 Startups have been virtually incubated from 2014 to till date
oo In the Virtual Program the following has been achieved:
▶▶ Provided 260+ hours of deep dive workshops on multiple topics
▶▶ Provided 300+ investor connects on a regular basis
▶▶ 120+ mentoring hours connecting expert mentor and start-up one on one
▶▶ 15 start-ups got acquired
▶▶ 15% start-ups recorded 5x increase in revenue.
▶▶ 20% start-ups doubled their revenue
▶▶ 55+ PoCs signed up between start-ups and corporates

K-Tech Innovation Hub by IAMAI

K-Tech Innovation Hub by IAMAI has been established in association with IAMAI to
strengthen the mobile app ecosystem in the State of Karnataka with the objective to
train mobile application developers and incubate and promote entrepreneurship. The
centre is located in K-Wings, HSR Layout, Bengaluru.

Achievements

oo 105 Startups are incubated at K-Tech Innovation Hub by IAMAI from 2015 to till date
and 30 Startups have been incubated for the FY 22-23
oo Supporting 14 Elevate, Amrut & Unnati winner startups.
oo IAMAI has partnered with multiple corporates and institutions to provide various
startup credits and offers.
oo Startups incubated in IAMAI have raised approx. Rs. 20 crore funding

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K-Tech Innovation Hub by Bangalore Bio-innovation Centre (BBC), Bengaluru

K-tech Innovation Hub – Bangalore Bio-innovation Centre is an initiative of Karnataka

Innovation Technology Society (KITS), Department of Electronics, IT, BT and S&T,
Government of Karnataka with funding support from Department of Biotechnology
(DBT), Government of India. It is located within Bengaluru Helix Biotech Park at
Electronic City in a 10 acre campus with a total built up area of above 60,000 sq. ft. It
provides incubation, mentoring support, funding opportunities, branding support and
networking support besides laboratories and equipment. BBC caters to the broad areas
of Life Sciences i.e., Healthcare (MedTech & Pharma/Bio-Pharma), Agriculture, Food/
Nutrition, Industrial Biotechnology and Environmental Biotechnology. Addition of 15,000
sq. ft. space to meet the growing demand for the incubation is under progress. Within
a short span of 6 years, it has emerged as the largest Life Sciences start up hub in the
country. BBC has consecutively, for the last two years, bagged the Best Bio-Incubator
award in the country under the public sector undertaking category in the BioSpectrum
survey. Currently, BBC houses more than 100 start-ups in its campus with 45 start-ups
already been graduated. Around 45 products developed under the nurturing support of
BBC have been launched and around 71 patents have been filed. The start-ups at BBC
have attracted Rs. 400 crore worth of Investments and the combined valuation of start-
ups has reached Rs. 1000 crore.

IDEA2PoC/ Elevate Grant in Aid Seed Funding Scheme

Idea2PoC – a scheme to provide early-stage funding to ideas or concepts which are yet
to establish the proof of concept in the real world, up to Rs. 50 lakh. Till date, 14 calls have
taken place and around 720 Start-ups/ Ideas have been selected for funding. The total
committed fund is Rs. 163.92 crore.

Beneficiaries of Elevate/ Idea2PoC Grant-in-aid Seed Funding Scheme

BOUNCE (Wicked Ride Adventure Services Private Limited)

Sector: Mobility

Brief description: Bounce is India’s first smart mobility solution, with a mission of
making daily commute stress-free, time-saving, reliable and convenient. Bounce Infinity
is India’s first Electric Scooter that doesn’t need charging. Swap your drained battery
with a charged one at a Bounce swapping station and keep going! Developed in-house
by Bounce, it’s made in India, for India.

Grant-in-aid (Rs.): 10 lakh

Funds raised (Rs.): >500 crore

NIRAMAI Health Analytic Private Limited (Women-led start-up)

Sector: Healthcare

Brief description: NIRAMAI, have developed a novel software-based (AI & Thermal
Imaging) medical device to detect breast cancer in early stage. NIRAMAI received US
FDA clearance for their medical device SMILE-100.

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Grant-in-aid (Rs.): 25 lakh

Funds raised (Rs.): 50 crore
Shuhari Tech Ventures (Women-led start-up)
Sector: Fin-Tech

Brief description: An instant personal loan app that gives you loans of up to Rs. 1 lakh in
just 3 minutes.

Grant-in-aid (Rs.): 35 lakh

Funds raised (Rs.): 28 crore
Bellatrix Aerospace Private Limited
Sector: Space-Tech/ Electronics System Design and Manufacturing (ESDM)

Brief description: Bellatrix Aerospace develops advanced propulsion systems for

satellites that are more efficient, cost effective, saving and reliable compared to its global
competition.

Grant-in-aid (Rs.): 35 lakh

Funds raised (USD): 8 million in a Series A funding
Steradian Semiconductors Private Limited
Sector: ESDM

Brief description: Steradian is the pioneer in Integrated 4D Imaging Radars. Steradian’s

radar technology is expected to be adopted in home security systems such as surveillance,
traffic monitoring for people, cars and motorcycles, HMI systems such as gesture
recognition and docking systems in airport terminals.

Grant-in-aid (Rs.): 37 lakh

Funds raised (USD): 2.1 million in funding over 4 rounds. Renesas (Japanese company)
buys Steradian Semiconductors in Aug 2022.

String Bio (Women-led)

Sector: Healthcare & Agri-Tech

Brief description:String Bio is in the business of manufacturing raw materials for Animal
Nutrition, Agriculture, Human Nutrition and Personal Care sectors that are derived using
a sustainable and traceable process.

Grant-in-aid (Rs.): 20 lakh

Funds raised (USD): 20 million in Series B funding
Scapic Innovations
Sector: Industry 4.0 - AR

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Brief description: 3D powered product visuals for eCommerce

Grant-in-aid (Rs.): 20 lakh
Funds raised (Rs.): Acquired by Flipkart

Elevate Women

Elevate WomenEntrepreneurship a program is undertaken by the Department as part of

the Budget Announcement in the financial year 2021-22. This program aims to support
women entrepreneurs across the entrepreneurial lifecycle and create an enabling
ecosystem to enhance participation of women in entrepreneurship. This is an Acceleration
and Incubation Programme exclusively for women entrepreneurs by partnering with Not-
for-profit organizations that have considerable experience in running these programs
and by extending support through Grant-in-aid. Four organizations/agencies have been
selected under the Acceleration program with a Grant-in-aid of Rs. 40 lakh/Cohort. Under
the Incubation program three organizations/agencies have been selected with a Grant-
in-aid of Rs. 30 lakh/Cohort

Incentives and Concessions

oo Incentives – Reimbursement of patents, tax and marketing expenses for Start-ups

Incentive Type No. of Start-ups (approx.) Amt. in crore (Rs.) (approx.)

Patents, Marketing, Tax (GST) 50 1,33,95,777

▶▶ Marketing Incentives: Rs. 15,41,111

▶▶ Patent Filing Cost: Rs. 51,51,040
▶▶ Reimbursement of Service Tax: Rs. 7,92,672
▶▶ Reimbursement of GST: Rs. 55,417
oo Booster Kit – a power packed collection of software tools and services available on
pro-bono basis tailor made to cater to the needs of early stage start-ups.

Services Companies
Cloud Google, Amazon, Microsoft

Acceleration & Incubation The GAIN, DERBI, StrongHer Ventures

Banking & Finance HDFC, Axis Bank, SBI, Razorpay, Paytm

Capacity Building through Exposure Visits and Workshops

Asia-Berlin Summit

This is an annual summit of year long Asia-Berlin activities where policymakers, start-ups,
and investors meet to discuss the newest tech trends and cross-border collaboration

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between Asia and Berlin. 7 start-ups from Karnataka travelled to Berlin as part of official
Govt delegation.

NOKIA Innovation Day 2022, 5G Workshop

The Department of Electronics, IT, BT and S&T, Government of Karnataka in partnership

with Finnish embassy in India and Nokia organized the workshop “Innovation Day
2022-Unleashing the 5G Network”, a workshop aimed at providing an invigorating
platform for innovative start-ups focused on the 5G Technology. The workshop aimed at
identifying synergy, areas of mutual interest towards collaborative efforts to bring highly
scalable, powerful, efficient, Intelligent, flexible, smart networks through 5G technology.
The workshop also aimed at identifying Start-ups from Karnataka interested in a joint
collaboration, project or R&D with Nokia in 5G technologies in the future.

The workshop aimed at providing a stage for collaboration around 5G use case
implementation through which start-ups can grow eminently. In turn help in development
of 5G ecosystem, a win-win for Nokia and the participating start-ups. The workshop
showcased 5G and its use cases to start-ups, explored potential opportunities and
collaboration avenues between Nokia and Start-ups. The start-ups got an opportunity to
showcase use cases to collaborate with Nokia in areas of mutual interests.

Karnataka Unit for International Collaboration (KUIC)

Global Innovation Alliance program is an initiative launched by Government of Karnataka

in 2017 with an aim to create a platform for global collaboration on technology and
innovation and to ensure State of Karnataka is provided an opportunity to showcase its
strengths as part of this global tech revolution.

oo Karnataka currently has 30+ GIA partners with whom there are constant engagement
and/or joint projects are being executed.
oo Some of the start-up focused types of programs conducted with GIA partners:
▶▶ GIA Market Access Program: To help start-ups enter new markets, establish
international partnerships, and increase global sales.
▶▶ An inbound program was conducted with Berlin during 2019 where two start-ups
from Berlin came to Karnataka and an MoU has been signed during April 2022 for
conducting a bilateral program with Berlin.
▶▶ Outbound program has been conducted with The Netherlands where start-ups
got an opportunity to explore the Dutch ecosystem
▶▶ GIA Tech Engagement Meet: Event to introduce Karnataka start-ups to GIA
country start-up ecosystem for collaboration.
▶▶ Around 15 GIA Tech Engagement Meets have been conducted with around 12
countries.
▶▶ We have also collaborated with countries like UK, Australia, Germany etc to have
Karnataka based start-ups participate in specific tech and innovation focused
start-up programs launched by their countries

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The Grand Challenge Channelizing Innovation for Social Impact

Grand Challenges : It is an initiative of the Government of Karnataka, to scout for new

technologies or innovations that can offer solutions to some of the persistent social issues
pertaining to the State of Karnataka. Grand Challenges, Karnataka aims to channelize
innovations for social impact, and in the process support the establishment and growth
of Start-ups. The department has conducted 7 Challenges under Grand Challenge
Karnataka so far.

K-Tech Innovation Hub by IKP

Government of Karnataka has set up K-Tech Innovation Hubs across the State in identified
areas for e.g. Electronics, Mobile, Animation and Gaming, Design engineering etc. These
are accelerators and incubators and provide all necessary infrastructures for the given
sector such as R&D Labs, common centre for prototyping, common testing/QA/QC labs
and design studios.It is great to note that 101 teams across 4 centres and around 50 seats
have been occupied by women. 500+ direct jobs have been created and the program has
reached more than 1500 innovators

Common Instrumentation Facilities (CIFs) established by K-tech Innovation Hub in -

Belagavi, Mangaluru, Mysuru, Shivamogga and GTTC, Rajajinagar, Bengaluru.

Centres of Excellence (COEs)

Centre of Excellence (CoE) in various sectors has been set up to drive innovation and
entrepreneurship in the State of Karnataka. CoEs have been created in 8 new and
emerging technologies such as Data Science and Artificial Intelligence, Cybersecurity,
Internet of Things, Agri innovation among others. The CoEs have been created in PPP
mode to create a platform for bringing together start-ups, academia and R&D, and
industry. Around 400 start-ups have been benefitted from the program with the start-
ups raising Rs. 600 crore funding and 70+ mentors and industry partners have been
established.

K-Tech Centre of Excellence in Cyber Security by IISc

The K-Tech COE in Cyber Security was formed in 2017 by Govt. of Karnataka, as part of the
Technology Innovation Strategy, to promote the cyber-safe and conducive environment
for industry collaboration, address the skill gaps, build awareness and facilitate innovation
in the emerging technology field of Cyber Security. The K-Tech centre of Excellence shall
also facilitate standardization the best practices for information security across industry
domains, foster innovation, research & development and conduct some of the high-end-
in-house-training programs within Cyber Security Technologies.

K-Tech Centre of Excellence for Data Science and Artificial Intelligence by NASSCOM

The K-Tech COE – DSAI has been established with a vision to put Karnataka in the global
map of top 3 destinations for Data Science & Artificial Intelligence. This will further
strengthen the State’s DS & AI ecosystem and will provide a platform for AI and technology
collaboration between various stakeholders. As per a KPMG Global Technology Innovation
Report 2018, Bangalore is one of the TOP 10 global innovation hubs and counted amongst
the likes of Tokyo, London, Beijing, Tel Aviv, New York etc.

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K-tech Centre of Excellence on Internet of Things (IoT) by NASSCOM

The K-Tech Centre of Excellence for IoT India, at Bangalore, is a Digital India Initiative to
jump start the IoT ecosystem in India taking advantage of India’s IT strengths and help
country attain a leadership role in the convergent area of hardware and software. The
main objective of the K-Tech CoE IoT is to help Indian IoT Start-ups leverage cutting edge
technologies to build market ready product.

To kick start the Government’s ‘Digital India’ initiative a Centre of Excellence for IoT at
Bangalore was established in July 2016. Jointly formed by MeitY (Ministry of Electronics
and Information Technology), ERNET, NASSCOM and supported by Government of
Karnataka.

The centre after its establishment has contributed to the community at large. Listed
below in Table 3.4 are a few impacts made by the institution.

Table 3.4: K-tech Centre of Excellence on IoT by NASSCOM

Start-ups enrolled (including Graduated) 162

Connected Pan India for market opportunities + mentoring 1151

Employment Generated (by Start-ups) 2262

IOT Researchers incubated 135

Prototypes showcased 137

Papers presented in global conferences 23

IP’s Applied (Granted) 23 (14)

Societal Projects Executed 45

Partners Signed up : Strategic/Co-create/ Innovation/ 51

Infrastructure/Technology

Events Organized (Participated) 146 (215)

Showcase of eco system and start-ups to the Global and Domestic 172
Governments, VIP visitors, policy makers, investors, corporates,
MNCs/GICs, innovation adopters etc.

K-tech Centre of Excellence in Machine Intelligence & Robotics by IIIT-Bengaluru

The Department of IT, BT and S & T in association with IIIT-B has set up a K-Tech Centre of
Excellence on The Machine Intelligence and Robotics (MINRO) at cost of Rs. 34.70 crore.

K-tech Semiconductor Fabless Centre of Excellence by India Electronic Semiconductor

Association (IESA)

Government has set up a K-Tech Semiconductor Fabless Centre of Excellence to provide

Indian fabless semiconductor product companies easy access to (otherwise exorbitantly
expensive) R&D infrastructure for e.g. EDA Tools, Design IPs (foundation IPs/ Core IPs),
Foundry access – foundry design kits, subsidized test chip shuttles, Server Farm and

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other physical infrastructure, in order to enable them to successfully do their design to

all the way to product prototypes.

K-Tech Centre of Excellence for Efficiency Augmentation

To address the technical challenges of various important sectors in the development of

Karnataka, a Centre of Excellence for Efficiency Augmentation is being established with
the collaboration of STPI. The CoE for “efficiency augmentation” is a multi-disciplinary
research centre proposed at the Yuvaka Sangha a society having registered office in
Jayanagar, Bengaluru. The Centre of Excellence shall be of international standard which
seeks to bring together the international community, Industry to debate, deliberate, act
and innovate in both the industry (infrastructure, business transformation and people
development), in order to address technology’s impact on Industry. The proposed CoE on
efficiency augmentation is an open cyber-physical systems (CPS) ecosystem designed to
cultivate early-stage innovation and experimentation. This CoE aim to work with Govt,
SME/MSME & tech start-up leaders to transform business ideas into tech deliverables. The
CoE shall pilot, adapt technology and processes to proactively predict industry needs and
address real-world industry challenges. This CoE aims to provide with comprehensive,
end-to-end solutions that demonstrably improve quality and efficiency of Industry tech
start-ups.

ARTPARK

I-Hub-ARTPark has been established as an IISc promoted Section 8, Not-for-Profit

company, in the name and style of ‘I-Hub for Robotics and Autonomous Systems
Innovation Foundation (I-Hub)’ on 16th September 2020, as a collaboration between IISC
(Anchor Institution), AIOT Foundry Private Limited and the Department of Science and
Technology, Government of India (“DST”). Total Project Cost of Rs 210 crore(GOI- Rs 150
crore & GOK- 60 crore).

DST, through the Mission Office NM-ICPS (“Mission”) I-Hub-ARTPark will help create
and maintain next generation Artificial Intelligence (“AI”), Robotics and advanced
communication facilities (5G), curate technology innovation projects and help nurture
technopreneurship activities. Physical and virtual infrastructure will be created in IISc
campus (both in Bengaluru and in Challakere) as well as outside IISc campus. I-Hub-
ARTPark will also develop skills training modules and run technopreneurship programs
to help create start-ups in the emerging area of AI and Robotics systems. The goal is
to develop the AI and Robotics ecosystem in Karnataka with I-Hub-ARTPark acting
as a nodal agency that will create technologies for Artificial Intelligence, Robotics and
Autonomous Systems.

Government of Karnataka will provide financial assistance of Rs. 60 crore towards setting
up the CoE and its operations for a period of 5 years and provide strategic direction and
support.

Centre for Internet of Ethical Things (CIET)

The Karnataka’s Department of Electronics Information Technology Biotechnology and

Science & Technology (IT, BT &ST) has granted approval for establishment of the CIET
in collaboration with IIIT-Bangalore and World Economic Forum (WEF). The proposed
Centre, envisioned by the Karnataka Government, is expected to contribute to a policy

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framework which explicitly engages with ethical and moral aspects of technologies and
also nurture a thriving innovation ecosystem in the state. The CIET will focus on health,
agriculture, education, manufacturing and mobility.

IIIT Bangalore’s Research Expertise at CIET with an emergence of novel technologies,

the ethics often lags behind the technological innovation. The IoT structure can radically
change the relationships between humans and the interconnected technologies or
devices, giving objects autonomy towards humans. To prevent this risk from materializing,
and regulate the ethical challenges that IoT enabled AI applications potentially bring in,
solutions embedded with ethical frameworks are necessary.

Government of Karnataka envisioned fostering research in the areas of AI and IoT

technologies that will align with the human development needs of present societies,
especially the marginal and under-served population. Through CIET, IIIT-Bangalore is
aimed to contribute its in-depth research expertise in the domain of security, privacy,
hardware design, data management and ethical policy, and formulate a technological
framework.

Karnataka Electronics System Design and Manufacturing (KESDM) Policy 2017-22

The Government of Karnataka, through KITS, has announced the new ESDM Policy
2017-22 on 1st December 2017, offering ecosystem support and various incentives/
concessions to ESDM companies of the State. ESDM 2017-22 is aimed at by achieving the
following goals
oo Stimulate the growth of 2000 ESDM start-ups
oo Enhance value addition done in Karnataka by 50%.
oo Create 20 lakh new jobs in the ESDM industry by 2025
oo Effect a quantum jump in the overall revenues of Karnataka’s ESDM companies to
USD 40 billion by 2025.
oo Significantly grow the ESDM exports from the state to USD 16 billion by 2025.
Achievements under the KESDM 2013 Policy

Seventy-two companies are registered till date under this Policy. Incentives to the tune
of Rs. 14.57 crore have been disbursed till date to the registered KESDM Companies apart
from other concessions given to the companies.

Brownfield ESDM Cluster at Mysore

In Hebbal Hootagalli of Mysore 1.5 acres of KEONICS land have been identified for setting
up of Common Facilitation Centre (CFC). This CFC is being established under the EMC
Scheme of MeitY, Government of India, supported by Government of Karnataka and
private partners.

CFC will function as a service provider to assist the firms seeking services in

oo Innovating and developing new products

oo Producing value added products

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oo Enhance productivity
oo Meeting international regulatory requirements

Brownfield ESDM Cluster at Hubballi

The Brownfield ESDM Cluster is set up in Sandbox Start-ups (Foundation of Sandbox Start-
ups Initiatives), a thriving business incubator, an initiative by Government of Karnataka in
association with Deshpande Foundation & IESA, in Hubballi in order to promote ESDM
sector in the North Karnataka region to develop indigenous products, by providing them
office space with plug-and-play facilities at subsidized rates.

Very Large Scale Integration (VLSI) Incubation Centre at Hubballi

The VLSI incubation is being set up in Bhoomaraddi College of Engineering and

Technology, Hubli/KLE Tech University, Vidyanagar, Hubli in association with IESA.

The VLSI/ESDM Incubation centre works with the start-ups or incubatees who are
interested to design semiconductor chips.

Incubation centre has also identified the Electronic Design Automation (EDA) software’s
required and reached out to the various EDA companies in order to partner with them
who can in turn help the incubates with access to the various licensed software as a part
of initial investment.

BioEconomy

Karnataka is pioneering state and very proactive in launching initiatives that support
and nurture the growth of industry and its citizens. One of the stated missions of the
Karnataka Biotech Policy (2017-22), which was released in 2017, is for the state to aim for
a 40 to 60% market share of the national BioEconomy target of USD 100 billion by the
year 2025. Karnataka contributed about USD 18.9 billion (~20%) to Indian BioEconomy
in 2022. Karnataka’s Biotech industry crossed USD 200 million R&D spent in 2022 and
records around 15% year over year growth. Biopharma and Bioservices are the two crucial
segments contributed majorly to Karnataka’s Biotech sector. BioAgri segment is the
largest contributor and accounts for nearly 23% of the total share followed by BioPharma
(23%), Bioservices (15%), BioIndustrial (11%) sectors as per the Karnataka Bioeconomy
Report by Association of Biotech Led Enterprises (ABLE).

Karnataka’s BioEconomy recorded 15% Year over Year (YoY) growth in 2022 and valued
at USD 18.9 billion. The period witnessed 155 new biotech start-up registrations in the
state (58% YoY growth). Karnataka generated an average of USD 1.58 billion per month in
2022, compared to USD 1.37 billion generated every month in 2021. Key segments of the
Biotech sector are BioAgri, BioIndustrial, BioPharma (Therapeutics, Vaccines, Diagnostics,
Medical Devices), BioServices (CRO / CDMO) and Covid Economy. It has significant other
areas of contribution like in digital healthcare and drug delivery; big data, IoT, and artificial
intelligence driven platforms; smart agriculture and smart foods, veterinary science and
reagents and analytical businesses (ABLE).

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Biotechnology Policy

Karnataka was one of the first Indian States to frame an industry-oriented biotechnology
policy and had come out with the Millennium Biotech Policy in 2001 followed by revised
Millennium Biotechnology Policy – II (2009 – 2014). Now, Karnataka Biotechnology
Policy – III (2017–2022) integrates and adopts new and emerging technologies as well
as utilizing the new developments in the rapidly advancing field of biotechnology for
finding new solutions to the persisting challenges in the State and beyond has been
envisaged. The policy also aims to capture 50% share of the national bioeconomy target
of USD 100 billion by further enhancing “Ease of Doing Business” and strengthening
relationships with other relevant departments in the Government.

Achievements

Institutional Infrastructure and Promotion of Entrepreneurship

The Bengaluru Helix Biotech Park was conceptualized with the following components:
Institutional Area to carry out cutting edge R&D, Innovation Area for start-ups to create
disruptive products and innovations in the sector and Industrial Area for enterprises/
MNCs to facilitate biotechnology industry. The first two components have successfully
developed with an investment of over Rs. 160 crore for the last 12 years to build, develop
and support Institutional and Innovation areas in the Bengaluru Helix Biotech Park.

The institutional area of 20 acres houses Institute of Bioinformatics and Applied

Biotechnology and Centre for Human Genetics. The innovation area of about 10 acres
has a state-of-the-art Incubation Facility at Bangalore Bioinnovation Centre setting up
of Incubation and common instrumentation facilities across Karnataka to accelerate
innovation and supporting the infrastructure facility for the institutes.

K-Tech Innovation Hub by Bangalore Bioinnovation Centre (BBC), Bengaluru

Institute for Bioinformatics and Applied Biotechnology (IBAB), Bengaluru

IBAB is a non-profit autonomous institute set up by the Department of Electronics, IT,

BT and S&T, Government of Karnataka. IBAB is established to undertake research and
development in advanced areas of Biotechnology including Bioinformatics, Cancer
Biology, Synthetic Biology, Structural Biology, etc., also to produce skilled manpower in
these areas for the benefit of growing Biotechnology industry in the state. IBAB while
continuing to offer PG Diploma, M.Sc and Doctoral programs in the areas of Bioinformatics
& applied Biotechnology. An amount of Rs. 600 lakh annual grant was sanctioned for the
FY 2022-23 towards maintenance and academic activities. A sum of Rs. 300 lakh has
been already released.As part of capacity building of resources in emerging areas of
biotechnology, two separate projects are being implemented by IBAB with the support
of the State Government.

Synthetic Biology Group at IBAB

Government had approved the establishment of Synthetic Biology Group with a total
budget of Rs. 9.85 crore for a period of 5 years.The group has successfully developed
and established several tools, reagents and technologies useful for translational research
activities and routinely uses them in the lab to generate new genes and customized

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genetic elements which include template-less PCR, DNA vectors, novel yeast expression
vectors based on synthetic promoters and transcription activators to create a library
of yeast strains capable of protein expression, cloning of multiple promoters, reporter
genes, terminators, etc.,

Till now more than 15 post-graduate students have been training and their projects
completed. Two iGEM (International Genetically Engineered Machine) teams were
formed by post-graduate students at IBAB who were mentored for the competition with
one team winning iBEC (Indian Biological Engineering Competition, pre-iGEM event
and getting grant support from from DBT, GoI for participating in iGEM. A total of Rs. 545
lakh has been released so far towards the program which includes Rs. 50 lakh released
during the FY 2022-23.

Bio-IT Centre

Bio-IT Centre established at IBAB for undertaking training and collaborative research in
the area of Genomics by utilizing the Next Generation Sequencing facilities at the Centre
at total project cost of Rs. 1433.52 lakh with Government of Karnataka supporting Rs.
946.02 lakh over 5 years period.

Under the project hands-on NGS-sequencing and analysis workshops have been regularly
conducted to graduates, post-graduates, doctoral degree students, faculty, scientists and
industry executives. Several collaborative research programs and publishing of research
papers in peer reviewed international journals and conferences are carried out under
the project. A total of Rs. 625 lakh has been released so far towards the program which
includes Rs. 50 lakh released during the FY 2022-23.

Centre for Human Genetics (CHG), Bengaluru

CHG provides comprehensive clinical services, including genetic counselling to patients

carrying a range of genetic disorders and in-born errors of metabolism. CHG is affiliated
to Bangalore University for awarding the M.Sc. degree and Manipal Academy of Higher
Education for awarding Ph. D. degree. During the last three years, the Centre has
provided diagnostic & counselling services to over 27,000 families with genetic disorders.
These services are provided free of cost to BPL families from the support provided by the
department. GoK has released an annual grant of Rs. 250 lakh for FY 2022-23 to CHG.

Bengaluru Helix Biotechnology Park (Industry Zone)

Bengaluru Life Sciences Park is being developed in 52 acres 27 guntas of land in PPP
mode is an integrated Industry zone with total built-up area of about 60 lakh sq. ft.
when fully developed to have best-in-class laboratory infrastructure to support a host of
R&D activities to have 60% of the area reserved for biotech/lifesciences companies. It is
estimated that industry zone with 150+ biotech/lifesciences companies and over 50,000+
employees will be the growth engine of biotech sector in the State.

The park will have a dedicated incubation space with shared instrumentation lab facilities
and customizable fully fitted lab and office suites. It will also house laboratory building
for mid-sized companies with modular lab suite options and shared conference rooms,
training rooms and cafeteria.

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Advanced Biotech Innovation Centre for Aqua-Marine (ABIC for AM)

KITS, Department of Electronics, IT, BT and S&T has partnered with College of Fisheries,
Mangaluru to establish Advanced Biotech Innovation Centre for Aqua-Marine to
encourage aqua-marine biotech sector in the State by supporting innovative ideas
generated by researchers, young professionals, and entrepreneurs. A MoA between KITS
and College of Fisheries was executed on 25th of January 2022 with a total project cost of
Rs. 600 lakh. First year grants of Rs. 200 lakh have been released in February 2022 to the
host institute for implementing the project.

Anti-Venom Research and Development Centre (AVRDC)

An Anti-Venom Research and Development Centre (AVRDC) is being established as a
collaborative initiative between KITS, GoK, IBAB and the Evolutionary Venomics Lab,
Centre for Ecological Sciences, Indian Institute of Science at IBAB campus. The centre
will come up at IBAB campus on a total built-up area of about 16,000 sq. ft. and will
have a serpentarium, venom extraction observatory, research lab, incubation facility and
digital library. The total cost of the project is Rs. 700 lakh for a period of 5 years. First-
year grants of Rs. 200 lakh have been released to IBAB in the in FY 2021- 2022 towards
implementation of the project.

K-tech Innovation Hub by University of Agriculture Sciences, Dharwad

Agri Incubation Centre and Common Instrumentation Facility (Agri-IC_CIF) has
been established in University of Agricultural Sciences (UAS), Dharwad for promoting
Agriculture and Agricultural Biotechnology industry in the state. The facility in the 6,800
sq. ft. area has 6 Bio-Suites and currently three start-up companies are incubated at the
centre.

K-tech Innovation hub by Central Food Technological Research Institute, Mysuru

A Nutra-Phyto Incubation Centre and Common Instrumentation Facility (NPIC-CIF) has
been established in the campus of Central Food Technological Research Institute (CFTRI),
Mysuru for nurturing entrepreneurs in the area of nutraceuticals and functional foods for
accelerated research, scale-up and efficacy studies all through a single point of access.
The centre is fully operational in 8,536 sq. ft. area with a total of 12 Bio-Suites. Presently, 8
start-ups are working at the centre.

Centre for Biotechnology Research, Bagalkote

Centre for Biotechnology Research (CBR) has been set up in the campus of University
of Horticultural Sciences, Bagalkot to carry out advanced research and promote
entrepreneurship in horticultural sciences. Common instrumentation facility and
incubation space with a total area of 26,436.16 sq. ft. area has been developed with an
area of 5,000 sq. ft. dedicated space for supporting start-up companies.

Institute for Agricultural Biotechnology (IABT) at UAS, Dharwad

Started in 2002 with seed funding from the Department of Electronics, IT, BT and S&T,
GOK, IABT offers M.Sc. and Ph.D. Degrees in Molecular Biology and Biotechnology and
other domains of Agriculture Biotechnology. IABT has also been awarded Rs. 6.49 crore
to set up Incubation Centre and Common Instrumentation Facility for entrepreneurship.

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These centres will facilitate the development of biotech start-ups and provide them quality
infrastructure facilities for R&D, research translational opportunities and mentorship
from experts.

Karnataka Start-up Advancement Program Bio 50 (K-SAP Bio-50)

K-SAP Bio-50 is an integrated, comprehensive program initiated by the Centre for Cellular
and Molecular Platforms (C-CAMP), Bengaluru and is supported by the Department of
Electronics, IT, BT and S&T, Government of Karnataka at a total cost of Rs. 333.90 lakh
targeting 50 start-ups during the three years of project period.

In three cohorts, a total of 27 start-ups have been mentored and the 4th cohort is under
progress. A Supplementary Agreement to the existing MoA was signed to conduct
accelerated K-SAP BIO 50 Program by integration of Elevate winner Start-ups for
completing the Cohort of 50 start-ups.

K-tech Centre for Excellence (COE) by C-CAMP

A Centre of Excellence for Agri Innovation has been established at Centre for Cellular
& Molecular Platforms (C-CAMP) to promote deep-science/technology driven
entrepreneurship in the agri sector, leading to innovation, economic development and
job creation in the agricultural domain.

The project with total budget of Rs. 15 crore for a period of 5 years with Department of
Electronics, IT, BT and S&T and Agriculture Department sharing in 25:75 ratios. An amount
of Rs. 3 crore is already released in FY 2018-19.

Human Resource - DBT Skill Vigyan State Partnership Programme

A Skill Vigyan Centre has been set-up at Karnataka Innovation and Technology
Society (KITS), with the support of Department of Biotechnology, Ministry of Science
& Technology, Government of India. The Department of Biotechnology, GOI has
initiated Skill Vigyan Programme in Life Science & Biotechnology for providing quality
hands on training in tools and techniques in multidisciplinary areas of biotechnology for
entry level students (10+2 and Graduates in Biotechnology), Refresher/Faculty training in
advanced and emerging areas of Life Science and Biotechnology for UG &PG Teachers
and Mid-career Scientists engaged in teaching and research, enhancement of
entrepreneurial skill sets among students under Entrepreneurship Development
Programme and Finishing School Programme for industry ready skilled manpower
in partnership with State and Union territories through hub & spoke model.
KITS entered MoA with 7 partner institutes for providing Faculty Training Program
(FTP) and Entrepreneurship Development Program (EDP) under DBT Skill Vigyan
State Partnership Programme in Life Science and Biotechnology. A sum of Rs. 32 lakh
grant amount has been released towards 1st year expenditure out of Rs. 78.80 lakh
sanctioned for the implementing the program. Around 63 students under EDP and
65 Faculty participants in 1st Batch have undergone training programs. Student
beneficiaries from each EDP partner institute are undergoing 3-6 months industrial
training.

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Technology Business Incubator

Business Incubation has been globally recognized as an important tool for job creation
and economic development. Department of Electronics, IT, BT and S&T, Government
of Karnataka (GoK) intends to support Technology Business Incubators primarily in
Institutions with strong R&D focus to tap innovations and technologies for venture
creation by utilizing expertise and infrastructure already available with the host institution.

In order to foster strong partnership between R&D institutions and industry, the Karnataka
Start-up policy had envisaged for supporting establishment of TBI for promoting
Innovations in thrust areas such as ICT/IOT/Software Products, ESDM, Robotics, 3D
Printing, Healthcare and Biopharma, Agriculture & Allied Fields, Clean Tech, Energy,
Water & its recycling, Education, Nanotechnology & Composites.

Through TBIs, it is intended to bring academia, industries, and financial institutions all
to one platform and promote/nurture novel technology/innovation coming out of such
association. Also, the start-ups will have Infrastructure, equipment, mentoring, branding,
networking, legal, financial, technical, intellectual property related services all in one roof
to build a vibrant start-up ecosystem within the academic setup.

Government of Karnataka is supporting establishment of the following TBIs:

1) Ramaiah – GoK Business Incubator, Bengaluru

2) MedTech & Geriatrich Healthcare, TBI at Centre for Product Design & Manufacturing,
IISc, Bengaluru
3) Nano-Science TBI at Centre for Nanoscience and Engineering, IISc, Bengaluru
4) Manipal – GoK BioIncubator, MAHE, Manipal, Udupi
Currently, a total of 70 incubated start-ups are benefiting under the program that
includes, usage of the high-end equipment, mentorship, networking opportunities,
market access and other support provided by the host organization. Out of the total
budget outlay of Rs. 2971 lakh for a period of 5 years, so far a total of Rs. 2111 lakh has been
released under the TBI program.

Karnataka BioEconomy Report (KBER) 2023

KITS has commissioned ABLE to provide a snapshot of the latest developments related
to bio-based economy in Karnataka, with a view to understand the status and progress
made by various segments.

BioEconomy is an economic activity that is driven by development and provisioning of

bio-based products and services. It takes into consideration the economic, ecological
and social impact aspects in the strategy. The Karnataka BioEconomy Report, “Quarterly
Update” is quarter- wise review of bio-based economy of Karnataka in a calendar year.
The “Quarterly Update” attempts to focus on broad coverage of the bio-based economy
in Karnataka. It does not provide a comparison of BioEconomy in Karnataka vis-a-vis
other states. The release of the provisional quarterly results is to allow policy makers,
businesses and other stakeholders to know the key trends and react to the emerging
and developing situations appropriately.

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The “Quarterly Update” is versioned as “Karnataka BioEconomy Report 2023, Quarterly

Update” though it captures the performance of the sector in the calendar year 2022. The
data from the four quarters (January – March, April – June, July – September, and October
– December) would be published at the end of each quarter. The full-year annual report
will be released in 2023. The reports of Quarter 1 and 2 have been released as on date.

Implementation of Departmental Schemes

KITVEN Fund-2
Divested from 1 company (avekshaa Technologies) for Rs. 2.50 crore and KITS received
Rs. 43 lakh from the Fund.

KITVEN Fund-3 (Biotech)

In compliance with the Government of Karnataka rules and regulations, an exclusive Bio
Venture Capital fund of the size of Rs. 50 crore has been registered with SEBI to partner
with the Government of Karnataka and launched. This will offer equity-based funding to
the biotech companies in need of mid–to late stage funding.

The Fund proposes to invest in companies catering to Biotechnology and such other allied
sectors within the State of Karnataka. The investment in companies will be in the nature
of equity, preference capital (convertible/ redeemable), debentures OR combination
of any of the above instruments adhering to the guidelines issued by the Securities &
Exchange Board of India (SEBI) from time-to-time. The typical investment horizon would
be 3-5 years although lower periods would also be considered. Name of the subscribers,
their committed amount is as under Table 3.5 and Table 3.6.

Table 3.5: KITVEN Fund-3 (Biotech)

Sl.
Name of the Subscriber Committed (Rupees in crore)
No.
1. KITS (including Agriculture Department, GoK, 18 crore (including 5 crore from
KITS) Agriculture Department, GoK)
2. KSIIDC 5 crore
3. SIDBI (Managers of Fund-of-Funds for Start-ups, 5 crore or 10% of the committed
Govt. of India) corpus, whichever is less
4. BIRAC, Govt of India 4 crore
5. KSFC 5 crore
Total 37 crore

Table 3.6: Status of Investments from the Fund

Sl.
Company Name Amount (Rs. in crore)
No
1 Pandorum Technologies Pvt Ltd 4.50

2 String Bio Pvt Ltd 5.00

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Sl.
Company Name Amount (Rs. in crore)
No
3 Vipragen Pvt Ltd 2.75

4 JIVA Sciences Pvt Ltd 4.45

5 Fibroheal Woundcare Pvt. Ltd. 4.50

1. Karnataka Semiconductor Venture Capital Fund (KARSEMVEN Fund)

Traditionally, Karnataka has been the favoured destination for the technology sector in
IT/ITES, biotechnology and semiconductors. Bengaluru has been the preferred as hub of
the Government of India (GoI) defence labs. This coupled with the talent pool, access to
engineering colleges and attractiveness as an investment destination for private sector
companies, has created an ecosystem giving Karnataka a national edge.

Bengaluru is the largest hub of semiconductor design companies, outside the Bay Area
in California. Nearly 70% of the country’s chip designers work here and around 80% of the
sector’s revenues in design are from this city alone.

Government of Karnataka / KITS (formerly KBITS) has set up Karnataka Semiconductor

Venture Capital Fund (KARSEMVEN Fund) for assisting Companies in the Semiconductor
sector. The total fund size is Rs. 92.95 crore. KITS has contributed Rs. 25 crore to the
fund and the balance has been mobilized from various other investing banks, financial
institutions, and Government of India (GoI).

KARSEMVEN Fund during the FY 2022-23 has fully divested its investment in Pinaka
Aerospace Solutions Pvt. Ltd for Rs. 15.26 crore as against an investment of Rs. 8 crore
and Prodigy Technovations Pvt. Ltd for Rs. 3.32 crore as against an investment of Rs. 1.63
crore. From the above divestments, the Fund has returned Rs. 15.75 crore to subscribers
(Rs. 10.19 crore as capital & Rs. 5.56 crore as profit). The Fund has totally exited from 3
companies fully and realized Rs. 29.79 crore as against investment of Rs. 16.18 crore. The
outstanding investment at cost is Rs. 67.25 crore.

The details of divestment & outstanding investments in Venture Capital Undertakings

(VCUs) are shown in Table 3.7 and Table 3.8.

Table 3.7 : Details of divestment & outstanding investments in VCUs

Divestment Value
Sl. Name of the Disbursement Month &
(Rs in crore)/
No. Company/ VCUs (Rs. in crore) Year
Month & Year

January 8.01 crore

1 Graphene Semicon Services Pvt. Ltd. 4.95
2015 Nov 2018

6.52 crore
3.20 July 2015 &
2 Prodigy Technovations Pvt. Ltd Jan 2021 &
0.03 Sept 2019
May 2022

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Divestment Value
Sl. Name of the Disbursement Month &
(Rs in crore)/
No. Company/ VCUs (Rs. in crore) Year
Month & Year

December
4.00 15.26 crore
3 Pinaka Aerospace Solutions Pvt. Ltd 2015 & Oct
4.00 May 2022
2017

TOTAL (Exited VCUs) 16.18 29.79 crore

Table 3.8 : Outstanding investments

Sl. Disbursement
Name of the Company/ VCU Month & Year
No. (Rs. in crore)
4 SenseGiz Technologies Pvt. Ltd 3.00 November 2015
5 Greendzine Technologies Pvt Ltd 3.00 March 2017
5.50 July 2017 &
6 Remidio Innovative Systems Pvt Ltd
3.00 Nov 2019
7 C&B Electronics Pvt Ltd 5.00 April 2018
5.00 February 2019 &
8 AptEner Mechatronics Pvt Ltd
3.00 April 2021
9 Open Appliances Pvt Ltd 3.50 March 2019
3.00 June 2019 &
10 Bellatrix Aerospace Pvt Ltd
5.00 June 2022
11 Bionic Yantra Pvt Ltd 2.50 November 2019
5.00 December 2020 &
12 AlphaICs India Pvt Ltd
2.00 January 2022
13 iCaltech Innovations Pvt Ltd 2.50 April 2021
14 Aarav Unmanned Systems Pvt Ltd 4.50 July 2021
15 Calligo Technologies Pvt Ltd 3.50 October 2021
16 Taqanal Energy Pvt Ltd 3.25 February 2022
March 2022 &
17 QUNU Labs Pvt Ltd 5.00
April 2022
TOTAL (outstanding VCUs) 67.25

KITVEN Fund-4 (Animation, Visual Effects, Gaming and Comics (AVGC))

AVGC Venture funds initiated by KITS, shall be managed by Karnataka Asset Management
Company (KAMCO). The objective of the fund is to invest in Start-ups, Early stage, Small
& Medium sized enterprises and such other enterprises engaged in AVGC sector
and other related businesses by investing in equity and equity linked instruments as
per the guidelines of SEBI. Venture Capital fund of the size of Rs. 20 crore has been
registered with SEBI. Fund received commitment from KITS (Rs. 10 crore), KSIIDC (Rs.
5 crore) and KEONICS (Rs. 5 crore). All subscribers have released 5% of the committed
amount towards launching of the Fund, SEBI Fee, Legal, documentation, statutory fees

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etc. Investment Committee has been formed. Fund has convened 2 IC meetings for
undertaking investments in 2 companies.

Bengaluru Tech Summit 2022 (BTS 2022) Biotechnology Track

The Department of Electronics, IT, BT and S&T of the Government of Karnataka, and
Software Technology Parks of India is organizing India’s flagship technology event and
Asia’s largest tech summit.

This was the 25th edition of Bengaluru Tech Summit with its theme ‘Tech4NexGen’ to
benefit industry leaders, technocrats, young innovators, investors, R&D professionals
& academia, and policy makers in IT, biotech, Deeptech and other future unravelling
technologies. The theme for IndiaBio@BTS was designed with “Leading the New Normal’’,
a worldwide gathering of Industry Leaders, Top Research Think Tanks, Academics,
Policymakers to explore new frontiers in biotech research and business. The world has
seen unparalleled collaborations in the areas of vaccine R&D and drug development in
the last year, while maintaining business continuity. Innovation and Collaboration are
going to be the driving factors for the industry in the coming year, and that is what
was captured in the 12 sessions with 56 speakers including keynote and moderators of
the 2022 edition. Some of the key focus topics include: Genomics Revolution 2.0 and
its implications, Smart Supply Chains in Biopharma, Gene Editing and Agriculture, One
Health and Pandemic Prevention, The Future of Genomic Medicine, Bio Industrial to
Boost Bioeconomy in Synthetic Biology, Bioenergy and Renewable Biochemicals, Smart
Protein, Biotech Future: Cell and Gene Therapy, Big Data in Drug Discovery, How to reach
the USD100 Billion Biological Manufacturing opportunity for India and Bioinvesting:
Public -Private Parterships.The Events at BTS-2022 included Multitrack Conferences,
International Exhibition Awards, Global Innovation Alliance, Start-up focus, National
Rural IT Quiz, Bio Quiz, Biotech Posters, STPI IT Export Awards, Smart Bio Awards, Silver
Jubilee Felicitation, & beyond Bengaluru Awards.

Highlights of BTS 2022

oo The Asia’s Largest Tech Show started with a stunning 3 minutes Inaugural Film on
Gandaberunda, the two-headed bird which is the ethos and glory of Karnataka
oo Launch of R&D Policy - Karnataka Research, Development and Innovation Policy
oo Silver Jubilee Felicitation of ITE and BIOTECH Companies- 25+ Years of presence in
Bengaluru/Karnataka for 35 companies.
oo Launched 22 innovative products/solutions by start-ups
oo Product Launches by USPTO’s Educational IP Workshop, 1 Verse’s Metaverse workshop,
Deeprio, Next Big Innovation Lab’s 3D Bio Printing Machine etc with coverage by
media.
oo Bio Quiz 15th edition goes National for the first time with 1198 registrations from PAN
India & Participation of students from 24 states.
oo The prestigious IT Ratna of Karnataka was awarded to Infosys and Intel
oo IT Pride of Karnataka awarded to TCS, Bosch, Mindtree, and 21 other companies

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oo GIA Expo 17 GIA Sessions – Germany, Thailand, Australia, France, Finland, Sweden,
Denmark ,Netherlands, UK, Japan, Singapore, South Korea, Austria, Poland,
Switzerland, Canada, Israel ,Lithuania, Italy, United States of America
The International Pavilion consisted of exhibitors from various countries including USA,
Canada, Germany, Netherlands, Britain, Denmark, Thailand and South Korea.

R&D Lab to Market pavilion hosted leading R&D labs of India which show cased their
technologies & original IP that had the potential to venture in to the market as products &
services that could create significant social impact & reduce import dependence. India’s
premier R&D institutes including CSIR Labs, ICMR Labs, DRDO Labs, C-DAC, C-DOT, NAL,
IIAP, ISRO, IIIT-B, and BIRAC were part of R&D Lab to Market pavilion at the exhibition.

Start-ups zone had 353 exhibitors from diverse sectors such as IT, Electronics, AI & ML, IoT,
Digital Learning, Mobility, Blockchain, Robo & Drone, Cyber Security, Gaming, HealthTech,
Fintech, Edutech, SmartTech & Agri Techa long with pavilions of I-BioM, BBC, BIRAC,
KDEM, IKEP, Kerala Start-up Mission and Brigade REAP from 19 cities of India.

3.4 AWARDS AND PROMOTIONAL ACTIVITIES

Industry Awards
STPI IT Export Awards: STPI is associated with Bengaluru Tech Summit since its inception
in 1998 and over the years STPI IT Export Awards have become a major highlight of the
event. The top performing IT companies in terms of Exports, Employment, Women
Employment, etc. were awarded on 17th Nov 2022 evening in a grand STPI IT Export
Awards -2022 Ceremony, during Bengaluru Tech Summit 2022. An eminent jury consisted
of members from STPI, Government of Karnataka, Academia, Industry Association and
Industry.

Smart Bio Awards: The India Bio@BTS has been presenting Smart Bio Awards with
an objective of recognizing biotechnology firms that have shown dynamic leadership,
exciting technologies and stand-out contribution in their chosen fields of biotech
activities.

SECTOR ORGANISATION

Biotech Start-up of the year Natura Crop Care

Innovator of the Year Award Stempeutics Research

Best Social Enterprise/ Institute Centre for Incubation, Innovation Research & Consultancy

Woman Entrepreneur of the Year Mocxa Health

Best Start-up Against COVID-19 Blackfrog Technologies Pvt. Ltd.

Bengaluru Impact Awards

Bengaluru takes pride in its well-deserved status as the start-up capital of India. The
First 40 out of 100 unicorns of India are housed in Bengaluru. This year 10 Unicorns and 3
Decacorns were felicitated in the august presence of Hon’ble Chief Minister of Karnataka
and Hon’ble Minister of Commerce and Industry, Govt. of India.

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UNICORNS : ACKO General Insurance, Amagi Media Labs, DealShare, Glance, LeadSquared,
Livspace, Mensa Brands, No Broker, Open Financial Technologies and Slice.

DECACORNS : Byju’s, Swiggy and Flipkart.

Product Launches and Demo

Booster Kit: Hon’ble Minister of Electronics, IT, BT and S&T, GoK launched the Booster
Kit inpartnership with Google, Paytm, HDFC, Razorpay, Microsoft & other Ecosystem
Partners to provide a gamut of pro bono services to further assist the start-ups in their
growth journey.

Start-up Product/Services Launch

Launched 21 innovative products/solutions by start-ups. The innovative products/

solutions developed are multi-disciplinary and are sector-agnostic. Out of the 21start-
ups, 3 are Women-led start-ups. Majority of the start-ups are incubated in Innovation
Hubs, Centres of Excellence (CoEs) and Technology Business Incubators (TBIs) supported
by GoK and anchored by C-CAMP, IISc & associations like NASSCOM and IAMAI.

Quiz Competitions

oo Rural IT Quiz : The 23rd edition of the Rural IT Quiz was conducted. 4.5 lakh students
from 28 States & 5 Union Territories Representing 350 districts. Students from as far as
- Lakshadweep, Jammu & Kashmir, Arunachal Pradesh, Assam, Manipur & Nagaland
participated in event, the footprint of the programmer.
oo Bio Quiz : 15th edition conducted of state Bio Quiz competition to National Level
offering an opportunity to showcase to the world, the talent of our country in the fast
growing area of Biotechnology.
BIO Posters- Walk way of Discovery

Popular amongst Young Researchers, Poster Session showcases innovative ideas,

outstanding research, ground-breaking studies undertaken by young minds from
Research Institutes and Universities that have the potential to make a significant impact
in the field of Life Sciences & Biotechnology.

oo This season Bio tech Posters from 104 Young Researchers were presented at the Walk
way of Discovery session.
Beyond Bengaluru

In India, 30% of the overall GDP is driven by the digital economy. This initiative of the
Beyond Bengaluru mission of KDEM, will focus on hosting 5,000 IT companies and start-
ups by 2026 in the Mysuru, Hubballi and Mangaluru clusters and creating Employment
opportunities for 10 Lakh (direct and indirect) candidates by 2026.

The program was aimed at enhancing growth in the IT /ITeS, Business Processing
Outsourcing (BPO), ESDM, and Telecom sector industries located in emerging technology
clusters in Tier II & III cities across the State. Each of these two events saw a great positive
response from the industry associations like IESA, NASSCOM, ASSOCHAM, TiE chapters,
CII, and so on. There have been multiple impactful MoUs signed by the KDEM during

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these events. Also, the entire stakeholder set-up in the Beyond Bengaluru clusters was
reached out pre-event which included trade associations, local industry chambers,
incubators, accelerators, R&D units, start-up communities, co-working spaces, colleges
etc.Total Amount Sponsored for 25 events in the financial year 2022-23 was Rs. 4.275 crore.

GAFX -2022

Bengaluru GAFX Conference is India’s most prominent & largest annual event for Games,
Animation & Visual Effects Industry hosted by Government of Karnataka and organized by
ABAI. The event strives to attract top subject matter experts, studios, production houses,
game developers and the best content & projects from all over the world to provide
exposure and know- how to the professionals, artists and students. The event offers one
of its kind platform for professionals, artists and students to showcase their talent, get
recognized on India’s largest platform connect with top employers from all over the
world. The endeavour is to enrich, energize, inspire and create a vibrant ecosystem.

INDIA’S LARGEST DEDICATED AVGC EVENT GAFX -2022

Karnataka Animation Visual Gaming and Comics (KAVGC) Policy 2017-22

Karnataka State, especially Bengaluru, is known world –wide for its IT prowess. The media
and entertainment sector has also benefited from the ecosystem of Bengaluru. The AVGC
sub-sector has particularly thrived in Bengaluru on the technology strengths and the
availability of talent in the city. Karnataka State is the first in the country to announce a
separate policy for AVGC sector in the year 2012 vide Government Order dated 07.01.2012
read above. After completion of five years of the policy, it was felt necessary to revisit
and frame a fresh policy for the KAVGC sector, keeping in view the changing needs
of the industry and in view of the technological innovations happening in the sector.
Accordingly, the Government Vide GO No. ITD 13 PRM 2016 Bangalore dated 28.7.2017
brought out the new KAVGC Policy 2.0.

The new Policy aims to foster the AVGC industry to build sustainability, scale and critical
mass, and support the development of creative in the State. To facilitate various objectives
of the policy, a host of incentives and concessions will be applicable for the industry
throughout the policy period.

Centre of Excellence in AVGC

The Centre of Excellence for AVGC provides state of art facility that will provide the
industry in Bengaluru and Karnataka a holistic technological boost in all aspects of
AVGC sector. Centre of Excellence in AVGC sector has AVGC Postproduction Lab and
AVGC Finishing School at a single location, which is providing unique advantage as the
Graduates of Finishing School will eventually move to the IP Creation, Innovation, R&D
and Incubation Centre. This co-location helping in building the ecosystem and creation
of Centre of Excellence in AVGC to global standards.

The COE has a digital post-production lab with technologies such as motion capture,
2D and 3D animation and high-speed rendering. The COE has a Finishing School for the
AVGC sector, which will also be set up in collaboration with industry associations. The
AVGC

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Postproduction Lab will help industry from the hurdles faced by the small and medium
studios and freelance artists and the AVGC Finishing School shall ensure regular supply
of highly skilled manpower to cater to the emerging sector of original IP creation and
sophisticated outsourced international projects coming into the Indian AVGC industry.

Digital Arts Centres (DAC) PHASE II

DAC project
oo DAC to help traditional fine arts colleges embrace digital. GoK is supporting Fine Arts
Colleges across Karnataka to embrace digital by providing grants to set-up digital
labs.
oo ABAI-DAC is anchoring this project for GoK and is facilitating the process and helping
with training, curriculum, and industry alignment.
oo Finishing School to create production ready plug and play talent. ABAI has put forth
a unique, 1st of its kind proposal which has received a green light from GoK and is in
the works.
oo Centre for Artists & Talent Development to foster a vibrant community. ABAI is
working on this path breaking proposal by conducting event such as DAS (Digital Art
Symposium)
oo Digital Painting,Graphic designing,2D Animation, Motion graphics, Digital sculpting,
3D Character Animation, Rotoscopy, Photography, Video editing, Houdini & VFX are
training curriculum for DAC colleges
3.5 EXPORTS AND IMPORT OF KARNATAKA

Karnataka has a long tradition of overseas trade. Historically, Karnataka has been a
major exporter of commodities like coffee, spices, silk, cashew nuts, handicrafts and
Agarabattis. In the last two decades, the State has emerged as a major player in the
export of electronic and Computer Software, Engineering goods, Readymade Garments,
Petrochemical, Agro and Food Processing products, Chemicals, Minerals and Ores,
Marine products, etc. Karnataka has carved out a niche for itself in the global marketplace
as the knowledge and technology capital of the Country. The State has made rapid and
spectacular strides in the new economy. Information technology, biotechnology and
research and development institutions have enhanced Karnataka’s achievements at
national and global levels. Karnataka accounts for more than one third of electronics and
computer software exports from the country. It is also a leader in exports of Coffee and
Spices, Petrochemicals and Engineering commodities from Southern Region.

Karnataka ranks 1st in Software/ Service exports and stands 4th in Merchandise exports in
the National export basket. The State stands second in the overall exports with combined
Service and Merchandize exports. Visvesvaraya Trade Promotion Centre (VTPC) under
the aegis of Department of Industries and Commerce, Government of Karnataka is
the Nodal Agency for promotion of export from the State. The analysis of export data
is being carried out based on the data provided by the Director General of Commercial
Intelligence and Statistics (DGCIS), Kolkata.

Karnataka’s overall exports (Rs. 9,517,93.69 crore) have increased by 36.5% during
2021-22 as compared to the year 2020-21, a record in 7 years exports. Karnataka’s exports

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in terms of value in 2019-20, 2020-21, 2021-22 and 2022-23 (April to September) are shown
in Table 3.9.

Karnataka’s exports amounted to about Rs. 9,51,793.69 crore in 2021-22 which constituted
about 18.90% of the Country’s exports in the year.The share of Merchandise exports in
the National exports constitutes around 6.13% and Software/ Service exports around 41
% for the year 2021-22. Exports of electronics and computer software and other service
sector constitute the largest share in the State’s exports. The other commodities which
registered good increase in share of Karnataka’s exports in 2021-22 as compared to 2020-
21 are Engineering Products, Pharmaceuticals, Agriculture and Food Processing sector
and Petroleum products. Decline in exports in comparison to 2020-21 were witnessed
only in the case of Cashew and Cashew Kernel sector due to low productivity and lower
prices in the international market. All other sectors recorded increase in State export
performance.

Merchandise Exports during the period April to September 2022-23 as compared to April
to September 2021-22 witnessed a 26 % growth. Services Exports during the year April to
September 2022-23 as compared to April to September 2021-22 registered a 30% growth.
Table 3.9 Export Performance of Karnataka (Value in Rs. crore)

Sl. 2022-23
Commodity 2019-20 2020-21 2021-22
No. (April to Sept)
Electronics and Computer
1 593422.70 586302.00 758734.75 475459.44
Software
2 Petroleum 18025.00 7405.85 33215.83 39668.52
3 Engineering 35535.20 42290.11 69681.64 28875.50
4 Others 10103.16 10503.71 20189.82 12166.23
5 Readymade Garments 15707.11 12336.39 17512.49 10653.58
Basic Chemicals,
6 13431.10 15180.14 23518.83 8403.50
Pharmaceuticals & Cosmetics
Agriculture & Processed food
7 5128.11 7247.71 11312.23 6181.83
including seeds & beverages
8 Coffee 2767.15 2982.20 4409.43 2908.47
9 Iron Ore and Minerals 2209.26 2689.75 3935.09 1353.73
10 Plastic Goods 1222.13 1455.65 2407.91 1028.13
11 Marine Products 1048.72 1118.06 1599.96 853.86
12 Chemicals & Allied Products 702.26 694.42 1019.53 607.53
13 Spices 509.76 807.64 1327.96 513.95
14 Gems and Jewellery 351.73 182.26 414.00 508.39
15 Handicrafts 1353.62 784.62 955.98 399.78
16 Leather Products 502.28 331.29 463.84 281.23
17 Cashew & Cashew Kernels 797.92 668.15 658.13 241.64

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Sl. 2022-23
Commodity 2019-20 2020-21 2021-22
No. (April to Sept)
18 Silk Product 283.80 290.82 424.72 189.60
19 Wool &Woollen Products 4.84 5.11 11.55 17.37
Total 7,03,105.85 6,93,275.88 9,517,93.69 5,90,312.28
Source: DGCIS-Kolkata

Principal Commodity wise export from Karnataka

Karnataka’s Principal Commodity wise export for 2021-22 is highest for Petroleum
Products being USD 4016.90 million and the least being USD 1.08 million for Coir and
Coir Manufactures with total export size being USD 25874.43 million with comparison to
the year 2020-21 is USD 15140.39 million with a tremendous growth of 70.90%.

Agriculture Commodity Exports from Karnataka

Karnataka’s exports in Agriculture Commodity amounted to about USD 1299.84 million

in 2019-20 and USD 1581.72 million in 2020-21 with a significant increase of 21.7%.
In Agriculture Commodity, Milling Products tops the list with 562.68% increase and
Preparations of cereals, flour, starch or Milk being the lowest in the list at 3.42%. The
agriculture commodity exports from Karnataka is shown in Table 3.10.

Table 3.10 : Agriculture Commodity Exportsfrom Karnataka – Comparison Between 2019-20

and 2020-21 Value in USD million

Sl.
Commodity 2019-20 2020-21 Difference
No.
1 Dairy products including Honey 12.34 13.11 0.77
2 Live trees, Flowers and plants 5.93 7.96 2.03
3 Edible vegetables 57.11 80.33 23.22
4 Edible fruits and nuts 135.34 113.71 -21.63
5 Coffee, Tea, Mate & spices 439.60 490.52 50.92
6 Cereals 27.10 130.43 103.33
7 Milling products 5.60 37.11 31.51
8 Oil seeds, grains, medicine plants 61.09 65.68 4.59
9 Lac, gums, Resins etc 150.94 143.98 -6.96
10 Vegetable plaiting materials 4.74 2.08 -2.66
11 Animal or vegetable fats, oils 6.33 5.53 -0.8
12 Edible preparation of Meat, Fish 0.30 0.12 -0.18
13 Sugar and confectionery 141.12 201.33 60.21
14 Cocoa & cocoa preparations 9.99 5.38 -4.61
15 Preparations of cereals, flour, starch or Milk 13.74 13.27 -0.47
16 Preparations of vegetables, fruits and Nuts 119.44 148.80 29.36

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Sl.
Commodity 2019-20 2020-21 Difference
No.
17 Miscellaneous edible preparations 95.54 108.29 12.75
18 Beverages, spirits & Vinegar 13.59 14.09 0.5
TOTAL 1299.84 1581.72 281.88

Policy supports for exports

Foreign trade is in the Central List of the Indian Constitution. The Government of India
is empowered to formulate all rules and regulations for foreign trade applicable for
the country as a whole. The role of the State Government is complementary by way of
providing supportive and special promotional measures for promoting foreign trade,
especially in regard to exports of goods and services.
The State has been providing various incentives & concessions to the MSME sector to
compete in the international market. The State Government has announced various
initiatives along with incentives and concessions for the promotion of exports in the New
Industrial Policy 2020-25.

Promotional Activities Organized by VTPC

oo Market Development Assistance to Micro and Small Manufacturing units, Artisans for
participation in domestic trade fairs and exhibition.
oo Participation in National/International Exhibitions & Trade Fairs.
oo Secretariat services for promotion of Special Economic Zones (SEZs) and Export
Oriented Units (EOUs) in the State

Capacity Building programmes

VTPC also conducts IPR/GI Awareness Programs through its IPR initiatives. From April
2022 to November 2022, VTPC conducted a total of 4 EMTP/EDP programs, 4 Agri Export
Training Programs, 20 Export Awareness Programs/ Seminars/ Workshops/ Stakeholders
Outreach and 14 IPR Awareness and GI programs.

Geographical Indications (GI) Policy

GI Policy which aims to protect the traditional legacies of the State, assist and support
infrastructure development required to strengthen the GI clusters in the State. Karnataka
is home to a total of 46 Registered GIs as on date. Further, through the Authorised User
drive undertaken by VTPC, the Authorised User base across GI products in Karnataka
currently stands at 596. GI artisans are being provided impetus and a platform through
Trade Fairs and Exhibitions, with a spotlight to GI tagged products at IITF, IGIF, etc. VTPC
on behalf of the State has filed a new GI – Patteda Anchu Saree & Fabrics, falling under
the handicraft classification of GI Registry. Specific GI products have also been identified
and mapped for promotion as part of the Atma Nirbhar vision of Govt. of India, like the
ODOP, District as Export Hubs, etc.

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SEZs in Karnataka

Karnataka has 36 operational SEZ’s with an investment of Rs. 1,06,524 crore and
generating employment for 4,00,170 persons. There are 485 SEZ units working in these
SEZ’s.

Imports of Karnataka

Top 30 import commodities data from major 3 ports of Karnataka state for the year 2021-
22 is given in the Table 3.11 Karnataka’s imports is highest with USD 6394.29 million for
petroleum crude oiland lowest for Plastic materials and other commodities with USD
26.55 and USD 21.43 million, respectively.

Table 3.11: Top 30 Import Commodities of Karnataka for the year 2021-22

Sl. No. Port Commodity Value (USD million)

1 NMPT Petroleum: Crude 6394.29
2 BIAL Computer Hardware, Peripherals 2453.26
3 NMPT Petroleum Products 2088.15
4 BIAL Electronics Components 1565.59
5 BIAL Telecom Instruments 1351.08
6 NMPT Vegetable Oils 1018.28
7 BIAL Electronics Instruments 999.68
8 BIAL Gold 817.98
9 NMPT Coal,Cokeand Briquittes, Etc. 598.03
10 BIAL Medical And Scientific Instruments 524.86
11 BIAL Electric Machineryand Equipments 459.07
12 NMPT Cashew 451.82
13 NMPT Fertilizers Manufactured 257.70
14 BIAL Other Commodities 255.64
15 BIAL Industrial Machinery for Dairy, Etc. 244.64
16 B-ICD Electronics Components 221.00
17 BIAL Consumer Electronics 194.03
18 B-ICD Electronics Instruments 166.71
19 B-ICD Industrial Machinery for Dairy, Etc. 156.47
20 NMPT Ship, Boat and Floating Structures 146.62
21 B-ICD Copper And Products Made Of Copper 120.73
22 B-ICD Electric Machinery And Equipments 118.40
23 B-ICD Other Miscellaneous Engineering Items 114.67
24 B-ICD Plastic SHT, Film, PLTS, Etc. 84.77
25 NMPT Organic Chemicals 83.41

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Sl. No. Port Commodity Value (USD million)

26 B-ICD Machine Tools 81.13
27 B-ICD Plastic Raw Materials 80.07
28 B-ICD Aluminium, Products Of Aluminium 63.37
29 NMPT Plastic Raw Materials 26.55
30 NMPT Other Commodities 21.43
Total 21159.43

3.6 ACHIEVEMENTS

oo Exports contributed about 40% of the State’s Gross State Domestic Product (GSDP)
with electronic, computer software and biotechnology contributing a major portion
of the exports.
oo About 393 Investment projects worth Rs. 2.37 lakh crore has been approved with the
generation of employment to the tune of 1.95 lakh during April 2022 to December
2022.
oo The state attracted USD 39.36 billion FDI equity inflow over the period October 2019
to September 2022 which is 23% of the national share.
oo Karnataka State (Rs. 41678 crore) stand second position on FDI inflows among 26
Indian States (Rs. 2,10,156 crore) from April 2022 to September 2022.
oo State Government launched several start-up-focused funds that have a corpus of USD
47.3 million. Over 14,000 people have signed up on the Start-up Karnataka Portal as
Start-ups, Mentors, Incubators, Investors, Institutes etc., and more than 2500 start-ups
have been certified by Karnataka Start-up Cell so far, of which around 720 companies
have been funded under Idea2PoC/ Elevate Grant-In-Aid Seed Funding scheme.
oo Karnataka is home to over 5500+ IT/ITES companies, ~750 MNCs contributing to over
USD 58 billion of exports, giving direct employment to over 12 lakh professionals and
creating over 31 lakh indirect jobs. The industry contributes to over 25% of the State’s
GDP. The share of Karnataka in Information Technology exports is nearly 40% of the
country’s exports of USD 155 billion.
oo Karnataka’s Bio Economy recorded 15% Year over Year (YoY) growth in 2022 and
valued at USD 18.9 billion.
oo Bengaluru takes pride in its well-deserved status as the start-up capital of India as 40
out of 100 unicorns of India are housed in Bengaluru.
oo 30% of the overall GDP is driven by the digital economy. This initiative of the Beyond
Bengaluru mission of KDEM, will focus on hosting 5,000 IT companies and start-ups
by 2026 in the Mysuru, Hubballi and Mangaluru clusters and creating Employment
opportunities for 10 Lakh (direct and indirect) candidates by 2026.
oo State ranks 1st in Software/ Service exports and stands 4th in Merchandise exports in
the National export basket.

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oo Karnataka’s exports amounted to about Rs. 9,51,794 crore in 2021-22 which constituted
about 18.90% of the Country’s exports in the year. The share of Merchandise exports in
the National exports constitutes around 6.13% and Software/ Service exports around
41 % for the year 2021-22. Exports of electronics and computer software and other
service sector constitute the largest share in the State’s exports.
oo State’s Principal Commodity wise export for 2021-22 is highest for Petroleum
Products being USD 4017 million and the least being USD 1.08 million for Coir and
Coir Manufactures with total export size being USD 25874 million with comparison to
the year 2020-21 is USD 15140 million with a tremendous growth of 70.90%.
oo State’s exports in Agriculture Commodity amounted to about USD 1300 million in
2019-20 and USD 1582 million in 2020-21 with a significant increase of 21.7%.
oo Under KESDM 2013 Policy, 72 companies have been registered . Incentives to the tune
of Rs. 14.57 crore have been disbursed till date to the registered KESDM Companies
apart from other concessions given to the companies.
oo Launched 21 innovative products/solutions by start-ups. The innovative products/
solutions developed are multi-disciplinary and are sector-agnostic. Out of the 21start-
ups, 3 are Women-led start-ups. Majority of the start-ups are incubated in Innovation
Hubs, Centres of Excellence (CoEs) and Technology Business Incubators (TBIs)
supported by GoK and anchored by C-CAMP, IISc & associations like NASSCOM and
IAMAI.
oo Government of Karnataka has set up K-Tech Innovation Hubs across the State in
identified areas. It is great to note that 101 teams across 4 centres and around 50 seats
have been occupied by women. 500+ direct jobs have been created and the program
has reached more than 1500 innovators.

3.7 WAY FORWARD

Actions needed to maximize the State’s economic growth including improving Ease-
of-Doing Business and Ease of Living to enhance and strengthen competitiveness in
attraction of both domestic and foreign investments, and higher exports.

oo The Government has brought out IT Policy, where in several incentives are being
offered to new IT / ITeS and other knowledge-based sectors to set up their facility in
Tier 2/3 Cities across Karnataka through incentives on land, stamp duty and taxes.
oo Government has set up 1.25 lakh sq. ft. area of K-Tech Innovation Hubs in various parts
of Karnataka managed by NASSCOM, IAMAI and Bangalore Bio-innovation Centre.
oo An initiative of Beyond Bengaluru mission of KDEM, will focus on hosting 5,000 IT
companies and start-ups by 2026 in the Mysuru, Hubbali and Mangaluru clusters
and creating Employment opportunities for 10 lakh (direct and indirect) candidates
by 2026.
oo Elevate Women Entrepreneurship program supports women entrepreneurs
across the entrepreneurial lifecycle and create an enabling ecosystem to enhance
participation of women in entrepreneurship.

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oo Idea2PoC – a scheme to provide early stage funding to ideas or concepts which are
yet to establish the proof of concept in the real world. Till date, 14 calls have taken
place and 720 Start-ups/ Ideas have been selected for funding.
oo Karnataka has set an ambitious target to achieve the USD 50 billion BioEconomy
by 2025, a lion’s share of the USD 100 billion target of national BioEconomy. IT & BT
Department will continue to focus on simplified administrative and easy clearances
to create an enabling environment for companies to invest across the biotech value
chain.
oo NAIN provides grant to select higher education institutions across Tier - II &Tier - III
cities of Karnataka to promote Entrepreneurship and also to foster innovation. The
project idea funded by NAIN focuses on solving local problems and nurtures new
ideas on fin-tech, clean-tech, edu-tech etc. Under the NAIN program, Government
of Karnataka has been able to setup District Innovation Hubs across 30 colleges in 18
districts of Karnataka. The total grant of Rs. 10.35 crore has been released.
oo Karnataka’s Electronics Systems Design and Manufacturing Policy 2017-22 has created
20 lakh new jobs in the ESDM industry by 2025. Effect a quantum jump in the overall
revenues of Karnataka’s ESDM companies to USD 40 billion by 2025. Significantly
grow the ESDM exports from the state to USD 16 billion by 2025.
oo State government can connect with investors over global platforms (Global Investor
Meet, Defence Expo) to bring in investments to the state. Showcasing the Advantages
for Karnataka as a destination of domestic and foreign investment through global
investors meet is important.
oo Top 30 imports valued around USD 21159 million. To reduce imports, import
substitution to be encouraged through providing incentives and relaxations like
computer hardware and peripherals, electronic components, vegetable oils, cashew,
organic chemicals
oo Karnataka’s policies and programmes for attraction of private Indian and Foreign
investments are based on complementarity between (a) Public (Union, State and
Local Government) investments and private investments and (b) total (public and
private) investments and exports. Karnataka’s performance in attracting private and
foreign investments and increasing exports in both traditional and modern sectors
are contributory to attainment of higher economic growth (or GSDP) and productive
employment generation. This approach leads to a Karnataka model of investment
and export.

Karnataka Economic Survey 2022-23

 CHA PT E R

RURAL DEVELOPMENT
4
4.1 INTRODUCTION

Rural Development is the process of improving the quality of life and economic well-being
of people living in rural areas. An emphasis on Rural Development is essential given that
the majority of the population (61% of Karnataka’s population) continue to live in rural
area. The proportion of rural population to total population is declining over the time.
The decline is faster in Karnataka as compared to India. With economic development,
the shift of labour from agriculture to other sectors has gathered momentum in last
two decades. Therefore, India and Karnataka are still largely rural agrarian economies.
Therefore, the focused approach to promote rural development is the real path to achieve
the desired goals in economic as well as human development.

Decentralised planning for the economic development and effective implementation

of Rural Development Programmes is crucial, as it results in achieving improved service
delivery. At present the state has 5954 Grama Panchayats, 238 Taluk Panchayats and 31
Zilla Panchayats.

After the 73rd Amendment to the Constitution, Karnataka was the first State to pass a new
legislation in 1993, viz., The Karnataka Panchayat Raj Act, 1993. With the 73rd Constitutional
Amendment 1993 the Panchayat Raj Institutions have acquired a statutory status,
become integral part of our polity and more importantly, they have been recognized
as ‘institutions of self-government’. They have been given the important responsibilities
of preparation and implementation of Plans to ensure economic development in rural
areas and to ensure social justice in the distribution of benefits of such development
process.

4.2 RURAL DEVELOPMENT PROGRAMMES

The Important basic requirements for any village for healthy living are, clean drinking
water, cleaning and lighting of roads, medical facilities, primary education for children
and roads for transportation etc. Development of rural areas has a bearing on improving
agricultural production and related economic activities, availability of natural and
financial resources and their development. The rural development programmes focus
on providing quality life to the rural people through provision of housing, drinking water,
sanitation, roads and connectivity and employment.

The limitations of Panchayats are scarcity of resources, lack of participation by the youth
and interference of the political class.

The Panchayats can be strengthened, if efforts have been made to devolve funds,
functions and functionaries to panchayats, by the government, then panchayats can
plan for economic development and social justice schemes. The Panchayats can be
strengthened by giving more powers in the areas of fuel and fodder, non-conventional
energy sources, rural electrification including distribution of electricity, non- formal
education, small scale industries including processing industries, technical training and
vocational education.

Proper monitoring is a must in release of the Finance Commission Grants released from
Government to Panchayats, in turn to be used to support and strengthen the delivery of
 Rural Development
126

various basic services like water supply, sanitation, seveage and solid waste management
etc. Panchayats to be carried out local audits regularly for ensuring of the funds utilized.
Panchayats are to be made more strengthened by giving capacity building and training
in preparation of Grama Panchayat Development Plan. Recruitment and appointment
of support and technical staff to made for smooth functioning of Panchayats.

For the development of rural areas, Rural Development and Panchayat Raj Department
is implementing various programme as mentioned in Table 4.1.

Table 4.1 : Details of Schemes of Rural Development and Panchayat Raj Department
(Rs. in Crores)

Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Rehabilitation of Bonded Labour 3.00 3.00 0.00
[Corpus fund to all DCs]
Rural Energy Institutions of 6.40 4.80 6.37
RDPR(MGIRED)
Panchayath Raj Commissioner- 5.40 5.53 4.29
Establishment
Karnataka State Decentralization 29.78 15.66 7.23
Programme and other Rural
Development Activities
Elections to PRI Institutions 172.00 2.47 1.35
State Election Commission 12.39 12.27 8.77
RDPR Computerisation 10.00 10.30 7.18
Pradhan Mantri Grama Sadak Yojane- 81.52 61.14 52.86
Road Maintenance
Amrutha Grama Panchayati Yojane- 187.50 180.96 115.21
Incentives to GPs
Management Support to Rural 15.92 16.18 11.30
Development Programme and
Strengthening District Planning
Process (SIRD)
Karnataka Panchayat Raj University, 2.58 1.94 1.13
Gadag
Namma Grama Namma Raste Scheme 120.00 90.00 94.57
(NGNRY) and other Rural Road
Schemes
KRRDA-Project Division & Sub Division 52.66 38.87 35.98
Karnataka Rural Roads Development 3.43 3.43 2.10
Agency
Karnataka Panchayath Raj University, 8.00 6.00 6.00
Gadag
Panchayat Raj Institution's Buildings 10.00 6.34 3.39

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Unspent SCSP-TSP Amount as per the 3.59 1.49 0.99
SCSP-TSPAct 2013
Repairs & Rejuvenation of Tanks - RDPR 5.00 0.00 0.00
Restoration and Rejuvenation of ZP 57.49 0.00 0.00
Tanks
Grameena Sumargha (including 2217.13 1415.28 1313.75
Namma Grama Namma Raste Scheme
(NGNRY))
Gram Panchayat Libraries & Information 80.98 60.30 58.57
Center
Rehabilitation of Bonded Labourers 4.22 0.00 0.00
DRDA - Administrative Charges 13.73 6.19 5.70
Vacant Posts & Other Expenses 200.06 9.97 11.14
Zilla Panchayat Maintenance Grants 99.82 103.26 105.99
Construction and Maintenance of Zilla 46.99 17.32 13.88
Panchayat Office Buildings
Maintenance Grants to ZPs including 18.44 0.00 0.00
Consolidated Salaries
XV FCG Grants to ZPs (60% Tied : 40% 158.81 35.66 34.75
Basic)
Maintenance Grants to TPs including 943.43 856.29 417.68
Consolidated Salaries
SFC Development Grants to TPs 516.38 370.95 73.89
Vacant Posts & Other Expenses 490.00 94.27 20.64
Honorarium to President, Vice 18.34 0.00 0.00
President & Members of Taluka
Panchayaths
XV FCG - Grants to TPs (60% Tied : 40% 317.61 71.31 70.97
Basic)
XV FCG Grants to GPs (60% Tied : 40% 2699.69 1862.27 2904.16
Basic)
SFC Development Grants to GPs 1203.42 601.61 902.41
Payments Under The Karnataka 0.50 0.00 0.00
Guarantee of Services Act -
Compensatory Cost
Royalty on Sand Mining to be Passed 35.00 5.31 5.04
on to GPs
Grants to Grama Panchyaths for 680.20 498.55 424.55
Securitization of Electricity Dues
Honorarium to President,Vice President 136.94 89.84 69.57
& Members of Grama Panchayaths

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Maintenance Grants for Rural Roads 218.73 65.87 120.73
Special Grants for Rural Roads 242.44 68.72 119.07
Chief Engineer, Panchayathraj 18.73 13.36 11.12
Engineering Department
ZP Establishment Charges of 225.62 168.86 159.36
Panchayath Raj Engineering
Department
Maintenance and Repairs of 31.28 18.98 13.81
Panchayath Raj Engineering
Department
Supplies for Panchayath Raj 3.06 1.55 0.29
Engineering Department
Mahatma Gandhi National Rural 2.81 2.48 0.71
Employment Assurance Scheme-
Establishment
Rural Water Supply and Sanitation 146.21 134.66 106.71
Department
Rural Water Supply Scheme including 278.39 99.39 147.39
Jaladhare
Repairs and Maintenance of Rural 5.72 3.68 0.11
Water Supply Scheme
Supplies of Rural Water Supply Scheme 1.81 1.11 0.01
CSS - Jal Jeevan Mission (Rural Water 5200.00 1648.79 2962.27
Supply Scheme)
CSS - Prime Minister Grameena Sadak 967.00 689.93 934.36
Yojana
CSS - Mahatma Gandhi National Rural 1545.00 1270.47 2606.32
Employment Assurance Scheme
CSS - Rashtriya Gram Swaraj Abhiyan 60.00 60.00 24.39
(RGSA)
CSS - Shyama Prasad Mukherjee 33.64 52.62 44.02
Rurban Mission
CSS - Swachha Bharath Mission 416.00 2.60 77.53
(Grameena)
Total 20064.79 10861.83 14119.63

Source : Avalokana report as on 20th Jan 2023

During 2022-23, an amount of Rs. 20064.79 crore is provided in the budget.

Rs. 10861.83 crore has been released and Rs. 14119.63 crore (by utilising opening balance
funds) is spent under various programs upto the end of 20th Jan 2023, of which Rs.
13350.36 crore is productive expenditure.

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The main challenges are, the institutes face lack of finance, the lack of finance resources
hinders their functions and growth. As there is very little devolution of authority,
Panchayat Raj Institution can’t govern unless they are given the authority to perform
functions related to governance.

Lack of Resources: There are infrastructure gaps at training centres like, shortage of
computers and satellite communication facility, poor amenities for residential training
etc., Training and capacity building by superior officials, as an essential prerequisite for
efficient functioning of GP’s. Specialized approaches like adult learning or experimental
training may be adopted. GP members get training once they elected. After getting the
training, proper monitoring of their understanding or performance has to be made.

Rural Housing

Housing is a basic need and essential security for every human being. In order to meet
the growing demand for housing, government is pro-active in the formulation of housing
policies and implementation of housing schemes.

As per the Socio Economic and Caste Census 2011, 40.62 lakh are houseless households
in rural areas. District wise details are given in Appendix 4.1.

During 2022-23, an amount of Rs. 3637.98 Crores (including Urban Housing) is provided
in the budget. Rs. 2341.41 crore has been released and Rs. 2374.97 crores (by utilising
opening balance funds) is spent under various programs upto the end of 20th Jan 2023,
of which Rs. 2344.68 Crore is productive expenditure. During the current year 93,674
houses have been constructed and 1099 house sites have been distributed up to the end
of November 2022. List of various housing programmes are given below in Table 4.2.

Table 4.2: Details of schemes of Housing Department (Rs. in Crores)

Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Vajpayee Urban Housing Scheme 300.00 100.00 86.99
Releases under Karnataka Real 8.58 11.06 10.61
Estate(Regulation and Development)
Act, 2016
Infrastructure facilities for Housing 150.00 112.50 20.02
Schemes/Projects
Pradhan Mantri Awas Yojana-Urban 464.41 718.85 229.42
Payment of Government Guarantee 11.53 0.00 11.53
Commission- Rajiv Gandhi Rural Housing
Corporation
Ashraya-Basava Vasathi 825.00 250.00 689.43
Repayment Ashraya Loan & Payment of 96.25 71.68 75.81
Interest
Dr. B.R.Ambedkar Nivas Scheme 755.00 250.00 494.58
Rajiv Gandhi Rural Housing Corporation 8.64 5.87 6.01

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure
D.Devraj Urs Housing Scheme 175.00 175.00 86.60
Establishment Charges for KSDB 30.50 24.15 13.65
Improvement of Slums 100.00 75.00 61.07
Repayment of Ashraya Loan (Principal) - 263.07 197.30 197.30
RGRHC
CSS-State Contribution under 250.00 250.00 245.00
convergence of Dr BR Ambedkar
Housing Scheme with PMAY(U)
CSS-State Contribution under 100.00 100.00 100.00
convergence of Vajpayee Housing
Scheme with PMAY(U)
CSS - Pradhan Mantri Awas Yojane 100.00 0.00 46.93
Grameena
Total 3637.98* 2341.41* 2374.97*
Source : Avalokana report as on 20th Jan 2023
* Allocation includes Urban Housing also.

Rajiv Gandhi Housing Corporation Limited (RGHCL) has been established as a nodal
agency to implement all the State and Central Government Sponsored housing
schemes for economically and socially weaker sections of society, both in rural and urban
areas. From 2000-01 to 2022-23 up to the end of November 2022, totally built 47.53 lakh
houses (43.96 lakh houses in rural & 3.57 lakh in urban areas) and 3.60 lakh sites have
been distributed (2.20 lakh in rural area & 1.40 lakh in urban areas) by investing of Rs.
38,826.30 crores (Including Urban), of which Rs. 12,859.86 crores on centrally sponsored
and Rs.25,966.44 crore on the state sponsored housing schemes. The details of scheme-
wise houses completed and sites distributed in rural areas are as below (Table 4.3).

Table 4.3 : Details of Houses Constructed and House Sites distributed under different Rural
Housing Schemes

Rural
Devraj Dr. B.R.
Ashraya/ IAY/ Rural
Rural Urs Ambedkar
Year Basava PMAY Total House
Ambedkar Housing Nivasa
Vasathi (G) Sites
Scheme Yojane
Yojane
2000-13 1551165 156380 637125 2344670 173494
2013-14 207594 4101 98815 310510 4279
2014-15 185073 3313 104098 292484 8140
2015-16 113375 2704 4739 100514 221332 8021
2016-17 123535 0 14183 12813 96030 246561 6202
2017-18 127751 220 15634 95660 64690 303955 9047

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Rural
Devraj Dr. B.R.
Ashraya/ IAY/ Rural
Rural Urs Ambedkar
Year Basava PMAY Total House
Ambedkar Housing Nivasa
Vasathi (G) Sites
Scheme Yojane
Yojane
2018-19 147081 44 6783 58883 56136 268927 3002
2019-20 64179 18 2782 24994 14682 106655 2537
2020-21 61651 0 2896 27014 11536 103097 2217
2021-22 56724 0 4800 29670 13389 104583 1829
2022-23** 50024 0 7519 22434 13697 93674 1099
TOTAL 2688152 166780 59336 271468 1210712 4396448 219867

** Figures are shown up to November 2022

The details of district wise houses constructed and sites distributed in Rural areas under
Basava Vasathi Yojane, Pradhna Mantri Awas Yojane (G), Devraj Urs Housing Scheme,
Dr.B.R. Ambedkar Nivas Yojane for the last three years as well as current year (up to end
of November 2022) are furnished at Appendix 4.2 to 4.6.

4.3 RURAL INFRASTRUCTURE

Karnataka Rural Infrastructure Development Ltd (KRIDL)

The Karnataka Rural Infrastructure Development Ltd (KRIDL) aims to undertake and
carry out all types of rural development works either entrusted to it by the government
departments, local bodies and other institutions, individuals etc., to provide assistance,
advise and services including capital resource and technical managerial and other
services. It also aims to eliminates middlemen (contractors) in the construction of rural
development works to avoid exploitation of the rural poor, thereby passing on the full
worth of money to the people.
KRIDL concentrates on labour intensive infrastructure works which are vital for
development by providing employment opportunities to rural unemployed and under
employed to improve their economic condition. It undertakes civil construction of
tanks, irrigation works, low cost housing, roads, culverts and buildings etc. in rural areas
employing rural youth. The works are being executed directly at Government Scheduled
Rates without the involvement of contractors.
During 2021-22, KRIDL has achieved turnover of Rs.2916.52 Crores with a net profit of
Rs.124.24 crores. During the year 2022-23, the agency has achieved a progress of
Rs.2060 crores (provisional) and expected profit is Rs. 171 crores up to end of
November 2022.

Major recommendations

oo KRIDL needs to be better utilize its significant cash reserves and fixed assets.
oo Existing equipment/ machinery/ infrastructure should be upgraded and put to use.
Old workshops should be revived so that material can be procured, and their repairs
can be done in house.

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oo Leasing/ renting arrangements for existing fixed assets such as land, buildings can be
explored for earning regular income. Surplus cash can be invested in higher return
earning instruments like reliable mutual funds, long term pension funds, etc.
oo Implementing Enterprise Resource Planning (ERP) solution across key modules such
as Engineering, Material management, Contract management, financial accounts,
Tender management, and MIS. This will help to provide a single, seamless and
integrated data view across the company and improve accuracy and timeliness of
business processes.

15th Finance Commission Grants

15th Finance Commission Grants have commenced from 2020-21 and will be effective
up to 2024-25. The recommended grants are in two parts namely, basic and tied grants.
Basic Grants are untied and can be used by Rural Local Bodies for location specific
needs except salary. The tied grants are to be used for the basic services of sanitation
and maintenance of Open-Defecation Free (ODF) status and supply of drinking water,
rainwater harvesting and water recycling.

For the year 2022-23, an amount of Rs.2463.00 crore have been provided to Rural
Local Bodies by the 15th Finance Commission, of which the amount allocated to
Gram Panchayat, Taluk Panchayat and Zilla Panchayat is Rs.2093.55 Crores (85%),
Rs. 246.30 Crores (10%) and Rs.123.15 Crores (5%) respectively.

For the year 2022-23, an amount of Rs.1652.91 crores, Rs.71.31 crores and Rs.35.65 crores
have been released to the Gram Panchayats, Taluk Panchayats and Zilla Panchayats of
the State respectively and completely utilized up to the end of November 2022 for the
proposed activities.

Rural Water Supply

Rural Water Supply schemes are taken up to provide adequate and safe drinking water
to rural population. The vision for the rural drinking water supply in the strategic plan
of the Ministry is to cover all rural households with safe piped drinking water supply
@ 70 lpcd and there is a large population that has to be provided with higher service
levels, as an interim measure the norm is 55 lpcd for human to meet the requirement.

i. Jal Jeevan Mission (JJM)

Government of India has launched “Jal Jeevan Mission” during 2019 in order to provide
safe and adequate drinking water to all rural households. The main objective of this
mission is to provide functional household tap connection (FHTC) to all the rural
households on regular and long-term basis at affordable service delivery charges leading
to improvement in living standards of rural communities by 2024.

Under centrally sponsored Jal Jeevan Mission, Government of Karnataka has launched
the pragramme Called “Mane Manege Gange” and intended to provide Functional
Household Tap Connections (FHTC) to all rural households at the rate of 55 LPCD in the
State.

For 2022-23, it is targeted to provide 31.99 lakh FHTCs, 12.33 lakh FHTCs are provided by
incurring an expenditure of Rs. 2203.52 crore up to the end of November 2022.

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ii. Water Quality Monitoring and Surveillance Programme (WQM&SP)

Under Jal Jeevan Mission (JJM), water quality monitoring has been given utmost
importance, as the water quality needs to be monitored on a regular basis to ensure
potable water gets supplied to the rural households. There are about 2,20,000 rural public
drinking water sources established in the State.

At present, there are 31 district level water quality testing laboratories and 48
Sub-divisional/Taluka level water quality testing laboratories in the state. These laboratories
undertake analysis of totally 13 physico-chemical for the drinking water sources.

Field water testing kits have been distributed to all the 5954 Gram Panchayaths to test
the water during pre-monsoon and post-monsoon seasons. Training is also imparted to
village water and sanitation committee (VWSC) for testing water quality using the kits.

iii. Multi Village Scheme

Drinking water supply schemes under Jal Jeevan Mission (JJM) have been formulated
in rural areas with surface water as source to tackle water quality problem. Habitations
having ground water chemical contamination like Arsenic, Fluoride, TDS, Nitrate and
Iron, the drinking water, will be supplied from nearest sustainable surface source after
treatment. There are 211 MVS schemes are under progress with an estimated cost of
Rs. 40,716.95 Crores. During 2022-23, it is to take up 139 MVS schemes with an estimated
cost of Rs. 25,310.73 Crores

Recommendations

(i) Scheduled water quality check

(ii) Recharge defunct bore wells
(iii) Automation of water supply
(iv) Introduce incremental block tariff for bulk water supply and
(v) Develop a ToT team and synchronization of water supply.

Rural Sanitation

1. Swachh Bharat Mission (SBM)-Gramin

Karnataka has been the forerunner in putting forth concerted efforts to implement total
sanitation in the rural parts of the State. To accelerate and achieve universal sanitation
coverage and to put focus on safe sanitation “Swachh Bharat Mission” was launched. The
objectives of the SBM(Gramena) is to bring improvement in the general quality of life in
rural areas by promoting, cleanliness, hygiene and eliminating open defecation. Ensure
every Family, Schools and Anganwadis in rural areas to have access to toilet facilities.

During 2022-23, an amount of Rs. 61.98 crore has been spent as against the target of
Rs. 416.00 crore and 9871 Individual Household Latrines and 87 Community Sanitary
Complexes have been constructed as against the target of 1.14 lakh IHHL and 665 CSC
respectively up to the end of November 2022.

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Under Grey Water Management out of 26836 villages, 26542 DPRs are prepared and works
started in 17113 villages an amount of Rs.106.00 crores have been releases to districts.

The biggest challenge is, to sustain the Open Defecation Free Status. In order to sustain the
Open Defecation Free Status and to work on ODF-Plus activities, the State Government
has obtained approval from the Union Cabinet for implementation of Swachh Bharat
Mission-Gramin (SBM-G) Phase II from 2020-21 to 2024-25.

The key objective of Phase II is to sustain the ODF status of villages and to improve the
levels of cleanliness in rural areas through solid and liquid waste management activities,
making villages ODF Plus. The following ODF-S (Sustainability) and ODF-Plus activities
are being undertaken.
1. Construction and usage of Individual Household Latrines (IHHL)
2. Construction of Community Sanitary Complex (CSC)
3. Solid and Liquid Waste Management (SLWM)
4. Material Recovery Facility (MRF)
5. Construction of Faecal Sludge Management (FSM) Unit.
6. Construction of GOBARDHAN Unit
7. ODF-S and ODF-Plus Centric Information, Education and Communication and
Training activities.

State has taken up several programmes to maintain Open Defecation Free (ODF)
status

Two days Divisional level ODF-Sustainability training cum workshop have been held with
Executive Officers to discuss on various components like ODF sustainability, Solid and
Liquid Waste Management, GOBAR-Dhan, Information Education and Communication
activities and appointment of Swachhagrahis.

A State level TOT on “Engagement of Swachhagrahis” was held and subsequently similar
trainings were held for 30 district consultants. The Swachhagrahis were trained and
engaged at village level to motivate and organize communities for improved usage of
IHHLs, sustaining ODF status, adopting hygiene practices and SWM, etc. As on date
30566 Swachhagrahis have been trained by the State.

IEC cell has been established at State level to effectively implement Information,
Education and Communication activities.

Various Information Education and Communication programs have been organized in

all Gram Panchayats of the state to educate the public on cleanliness, usage of toilet and
its maintenance, solid and waste management, menstrual hygiene management.

The mission aims to construction of four model material recovery facility (MRF) units
for scientifically disposal of solid waste collected in Grama Panchayats. Detailed project
reports have been approved for 04 units (Ramanagara, Bellary, Dakshina Kannada and
Udupi). One unit is near to completion in the Udupi District and 03 Units in other districts
are in progress.

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Best Practices

1. Faecal sludge management unit established in Badagabettu Gram Panchayath of

Udupi district. This is the first unit run by SHG collecting faecal sludge from surrounding
Gram Panchayaths charging Rs.3000 per tanker and converting that in to manure by
FSTP plant. In one month, it has collected 35 tankers of 3kl each.

A Faecal Sludge Treatment Plant (FSTP) has come up at 80 Badagebettu Grama

panchayat under the Swaccha Bharath Mission in Udupi district.
The faecal sludge management, when the septic cover flows, is a challenge in rural
areas. Due to non-availability suction machine, many a time it is directly let in the
open. To find a solution to it, the first FSTP a solution to it, the first FSTP has been
developed at 80 Badagubettu at an estimate cost of Rs. 63.36 lakh. It can treat 3kld
or 3,000 liters of faecal sludge daily.
The FSTP aims at scientific disposal of faecal sludge from houses, apartments and
commercial buildings and the processed faecal waste can be used as manure. The
manure will be given to the farmers at a concessional rate.

2. For the scientific disposal of dry waste, Udupi district set up SLWM (Solid and Liquid
Waste Management) centers across all 155 GPs. Involving SHG women, district has
successfully turned waste management into economic activity by converting trash into
resources.

After the success of SLWM in GP level, Udupi has entered into a second phase of solid
waste management called Material Recovery Facility (MRF), which is first of its kind in
rural Karnataka established in July 2021. By utilizing of Rs.2.5 crore under SBM(G) for the
formation of MRF.

MRF located in Nitte village handling dry waste (non biodegradable) from 42
Panchayaths in and around Karkala Taluk. It has the capacity of handling 10 ton per
day. Facility is equipped with amenities like 3 conveyor belts (floor conveyor, inclined
conveyor, mezzanine conveyor) baler machine, weighbridge etc. Collected dry waste
has been sorted (segregated) into 25-30 categories, then baled and dispatched to
authorised recycling centers. MRF has added value to waste and ensured that every
collected item is scientifically disposed. It increased the efficiency of work force and
reduces the labour and time involved in it.

In a year (from August 2021 to July 2022) MRF has collected 1056 tons of dry waste.
Revenue collected from the sale of dry waste is Rs 84.86 Lakhs, collection from user fee
is Rs 36.04 lakhs. Total income generated in a year is Rs 121.64 lakhs. Expenditure is Rs
115.22 lakhs. Net profit is Rs 6.5 lakhs.

MRF has paid tax as well. The dry waste which has been useless converted into
resources has been capable of generating tax revenue to government is significant.

To achieve ODF sustainability in rural areas through the Faecal Sludge Management
(FSM), the project aims to establish 54 model FSM units for scientific treatment and
management of faecal sludge, for which Detailed Project Reports have been approved.
Out of which 11 units are completed, 44 units are under progress.

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With the objective of producing bio gas from raw waste, currently 48 Detailed Project
Reports have been approved for the construction of bio gas units, of which 12 units have
been completed, and the work on pending units is in progress.

As per the mission guidelines, the villages have to declare ODF Plus in three phases
(Aspiring, Rising, Model). In this regard total 18717 villages have been declared as ODF
Plus (Aspiring-18506, Rising-69, Model-142).

National Awards received by Government of India:

oo Govt of India’s Jal Shakti Ministry awarded Karnataka First prize in Sujalam 2.0
campaign.
oo Govt of India’s Jal Shakti Ministry awarded Karnataka First prize in Swachhata Hi
Seva- 2022 campaign.
oo Karnataka State in 2nd rank in the ODF declaration Villages as Aspiring at Nation.

Rural Energy Programmes

Mahatma Gandhi Institute of Rural Energy and Development (MGIRED) carries out the
awareness and capacity building programmes on rural energy and sustainable rural
development including renewable energy conservation, environmental protection,
rain water harvesting, improved cook stoves, forestry etc. Capacity building inputs were
provided to elected representatives of rural local bodies, school & college students etc.

A) Karnataka State Biofuel

Karnataka Bio-fuel Policy is implemented through Karnataka State Biofuel Development
Board. Nearly 17,790 litres of bio diesel has been produced by incurring an expenditure
of Rs. 361.01 lakh as against the allocation of Rs.495.48 lakhs during 2021-22. For 2022-23,
an allocation of Rs. 300.00 lakh is earmarked, of which Rs.150.00 lakh has been released.
About 12180 litres of bio diesel has been produced as against the target of 17000 litres by
incurring an expenditure of Rs.213.93 lakhs (by utilizing opening balance amount) up to
the end of Nov. 2022.

B) Institutional support for Rural Energy Development

During 2021-22, 426 Training / Skill Development programmes were held covering 7161
participants. An amount of Rs. 521.75 lakhs has been spent towards Administration,
Training and Rural Heritage Park civil works expenses. For 2022-23, an allocation Rs.340.00
lakhs is provided, of which Rs.170.00 lakhs has been released. About 171 training of 5-days
residential training for SHG/GPLFs on Solid Waste Management and other trainings
were held covering 6737 participants by incurring an expenditure of Rs.374.99 lakhs (by
utilizing the opening balance amount) on Administration, Training and Rural Heritage
Park civil works up to the end of November 2022.

Rural Communications
Improvements of rural roads and their maintenance are being taken up under Pradhana
Manthri Gram Sadak yojana (PMGSY), Namma Grama Namma Raste Yojane (NGNRY) and
Mukhya Mantri Gramina Raste Abhivruddi Yojane (MMGRAY) as well as RIDF schemes.
Under these three programmes, totally 5988.66 kms of road length has been maintained

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by incurring an expenditure of Rs. 93.78 crore during the current year up to the end of
November 2022.

4.4 WAGE EMPLOYMENT PROGRAMMES

Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
Mahatma Gandhi National Rural Employment Guarantee Act is being implemented in
all the districts with an objective to enhance livelihood security in rural areas by providing
100 days of guaranteed wage employment in a financial year to every household whose
adult members volunteered to do unskilled manual work as per demand, resulting in
evaluation of productive assets of prescribed quality and durability, Strengthening
the livelihood resource base of the poor, Pro actively ensuring social inclusion and
strengthening of PRIs. Funds will be shared between the GoI & GoK in the ratio of 90:10
Labour and material ratio shall be maintained at 60:40.

For 2022-23, an amount of Rs.5246.83 crores has been released as against the outlay of
Rs. 7096.70 crores (including wage component), of which Rs.5016.82 crores has been
utilized to generate 945.20 lakh mandays up to Nov 2022. About 25.58 lakhs households
have been provided employment as against the demand of 28.86 lakh during the
current year. About 15.30 lakh works have been undertaken of which 5.27 lakh works are
completed and the remaining 10.03 lakhs works are under progress.

Karnataka State Rural Livelihood Promotional Society (KSRLPS)

Karnataka State Rural Livelihoods Promotion Society named as “Sanjeevini”, as a nodal
agency implementing the National Rural Livelihoods Mission (NRLM) since 2010-2011.

Institution Building and Capacity Building

Mobilization of poor to form their ‘own institutions’ is the most important prerequisite
and the core investment for large scale poverty reduction. NRLM would organize all poor
households (women) in to aggregate institutions of the poor, that provide them with
voice, space and resources. These platforms would partner with local self-governments,
public service providers, banks, private sector and other mainstream institutions to
facilitate delivery of social and economic services to the poor. Building and sustaining
institutions of the poor at various levels would be for collective action, greater solidarity,
bargaining power, economies of scale and larger linkages.

The Gram Panchayat Level Federation will select a local Community Resource Person
(CRP), to carry the social mobilization and capacity building process.

The progress achieved under NRLM through KSRLPS during 2022-23 under different
components is of Rs.392.13 crore as against the allocation of Rs. 505.93 crore up to end
of November 2022. About 22332 candidates have been imparted skill training against a
target of 26546 and 5967 candidates have been placed upto end of November 2022.

4.5 RURAL GOVERNANCE

Decentralized Planning in Karnataka
The Karnataka Panchayat Raj Act, 1993 provides for a three-tier structure of Panchayath
Raj Institutions namely Zilla Panchayath, Taluk Panchayath and Gram Panchayath to

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carry out the entrusted functions. Each Gram Panchayath with population of less than
8000 is provided with an annual grant of Rs.10 lakhs, Grama Panchayaths which are more
than 8000 populations is provided an increment of Rs.1 lakh for every 1000 population.
Rs. 1203.42 crore has been allocated to the grama panchayats during 2022-23.

Gram Panchayaths also have powers to levy tax on buildings and lands, levy water rate,
tax on entertainment, vehicles, advertisement and hoarding and collect market fee, fee
on bus stands and on grazing cattle. Both the Taluk and Zilla Panchayats are allowed to
charge fee on their property used by others and they do not have powers to levy taxes.
In addition, both the Grama Panchayats and the Taluk Panchayats get proceeds from
cess on land revenue, surcharge on stamp duty levied by the State Government. Except
for these, the panchayats have to depend solely on the resources transferred from the
Government.

As per the three schedules (I, II, III) the panchayats are authorised to carry out functions
such as preparation of annual plans, annual budgets and sectoral schemes for promotion
of agriculture, animal husbandry, rural housing, drinking water, roads and bridges, rural
electrification, education, rural sanitation, public health, women and child development,
social welfare, public distribution system, maintenance of community assets, co-operative
activities and promotion of libraries.

Section 309 of Karnataka Panchayath Raj Act 1993 provides for the preparation of
development plan by the Grama Panchayats, Taluk Panchayats and Zilla Panchayats.
Further, Section 310 of the Act makes it mandatory for the state to constitute District
Planning Committees (DPCs) in each district which are required to consolidate the plans
prepared by the panchayaths and municipal bodies and to prepare the draft district
development plan of the district by taking into consideration the needs of the spatial
planning, physical and natural resources and the level of infrastructure development.
Dr. D M Nanjundappa’s Report on Redressal of Regional Imbalances also recommended
that DPCs in each district should do the planning keeping ‘taluk’ as the primary unit in
the planning process.

In the preparation of plans the ward sabhas and grama sabhas play a crucial role and
their recommendations and suggestions do figure in such action plans emphasising the
fact that the plans so prepared are the byproduct of people’s wishes and demands. Thus,
the entire planning process can be termed as “Participatory Planning Processes”.

Section 309(4) and 309-A to 309-H of Karnataka Panchayath Raj Act 1993, it is clearly
mentioned the strategy to follow in preparing the development plan from the grass
root level Janavasti Sabha. These planning proposals have to be scrutinized at the gram
panchayat level and also at Gram Panchat/Taluk Panchayat/Zilla Panchayat development
committees. Vision plan has to be prepared at the Gram Panchayat level on the basis of
the necessity and available grants.

Namma Grama Namma Yojane : Grama Panchayat Development Plan: GPDP

The recommendations of the Finance Commission provided an opportunity for

strengthening the preparation of decentralized plan. As per amendment to the
Karnataka Panchayat Raj Act, 1993, Grama Sabhas are empowered for the preparation,
monitoring and evaluation of decentralized plans. Based on the recommendations, the

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state initiated the process of preparation of Grama Panchayat Development Plan and is
being implemented as Namma Grama Namma Yojane in the state.

The Process envisaged that, the resource envelope at Grama Panchayat was well defined
by incorporating funds received by the Grama Panchayat under the GP resource envelope.

Panchayats have been mandated for the preparation of Panchayat Development Plan
(PDP) for economic development and social justice utilizing the resources available to
them. The PDP planning process has to be comprehensive and based on participatory
process, which involves the full convergence with schemes of all related to 29 subjects
enlisted in the Eleventh Schedule of the Constitution and have been transferred to the
PRI Institutions along with funds, functions and functionaries.

The Department has taken up to prepare 5 years of Grama Panchayat Perspective

Plan throughout the State. Department has considered Poverty, Livelihood and Skill
Development, Health, Education, Women and child Development, socially secured
village, Environment and natural resource management. Infrastructure self-sufficient
village and Good Governance as main theme for preparation of GPPL. Formats have
been designed and finalized by the department and training has been imparted to all the
concerned stake holders to collect the GP wise, village wise grass root level information.
Collection of village wise information is under progress. The information will be uploaded
in Panchatantra 2.0 software. This will be the base level information for any planner to
make policies.

Activity Mapping

The State has evolved a detailed range of ‘Activity Mapping’ for all the three panchayaths.
Broadly, the activity mapping visualizes both Zilla Panchayaths and Taluk Panchayaths as
planners, facilitators and owners of common executive machinery, Grama Panchayaths
as the cutting edge of local service provision and Grama Sabha and Ward Sabhas as
instruments of downward accountability. The new activity mapping framework devolving
functions has to be accompanied by adequate devolution of finances and functionaries.
To translate this into reality, the department of Rural Development and Panchayath Raj
in coordination with other departments has devolved certain functions, functionaries
and finances to PRIs.

The functions of the Karnataka State Decentralized Planning and Development

Committee

In accordance with Karnataka Gram Swaraj and Panchayath Raj Act, 1993, Section
310(B) Karnataka State Decentralised Planning and Development Committee has been
constituted under the Chairmanship of Hon’ble Chief Minister, Government of Karnataka.
The main objective of the committee is to enable the Government to formulate
development plans and the annual economic review to be presented along with budget
document.

The Karnataka State Decentralized Planning and Development Committee (KSDPDC), it

shall link the plans of districts and other planning units to provide for mutual consultation
and negotiations between them and provide the framework for integrating the sectoral
and spatial aspects of urban and rural plans. The committee shall also look after formulation

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of policy matters related to local development and regional development, co-ordination

of districts and state plans and designing policies to strengthen local bodies.

Some of the activities carried out by the Committee during the current year are:
i) To formulate the plans from bottom to top approach a detailed guideline/ circular
has been issued.
ii) In order to facilitate preparation of Perspective Plan for 5 years by all the Grama
Panchayaths, training has been imparted to all the elected representatives, Chief
Planning Officers of ZP and other departmental officers.
iii) Action has been initiated for the preparation of 5-year Perspective Plan of Urban
Local Bodies as per 74th Constitutional Amendment.
iv) The preparation of Perspective Plan by each Grama Panchayats is under progress.

Allocation for District Sector

During 2022-23, an amount of Rs. 42972.09 crores was allocated to district sector plans
which constitute 16.17 percent of the total state budget. Major sectors like, Education
(51.07%), Other Rural Development Programmes (16.20%), Medical and Public Health
including Family Welfare (5.95%), welfare of Scheduled Castes, Scheduled Tribes & OBC
(7.34%), Nutrition (4.55%), Rural Employment (2.98%), Social Security and Welfare (4.19%)
has been given the priority during 2022-23.

WAY FORWARD
oo Action to increase the Gram Panchayath resources: (i) To increase the resources of
Grama Panchayaths, the tax levying coverage area and criteria has been revised,
(ii) Building and land tax has been levied based on their market value in Grama
Panchayath limit and (iii) Provision has been made for Grama Panchayaths to levy
taxes on mobile tower, wind power-based electricity generating plants and solar
energy based electricity generating plants in Grama Panchayath area.
oo Timely collection of taxes is crusial to increase the resources of Gram Panchayaths.
oo KRIDL needs to better utilize its significant cash reserves and fixed assets. Surplus
cash can be invested in higher return earning instruments like reliable mutual funds,
long term pension funds.
oo Recharge defunct bore wells, Automation of water supply and incremental block
tariff for bulk water is crucial for sustaining MVWSS.
oo Faecal Sludge Management by SHG in Badagabettu Gram Panchayath of Udupi
district should be replicated across GPs in the State.
oo Participatory Planning Process should be enforced compulsory as per Karnataka Raj
Panchayat Act, 1993.
oo Panchayats should be enforced for the preparation of Panchayat Development Plan
(PDP) for economic development and social justice utilizing the available resources.
oo To strengthen the Rural Local Bodies economically sound, the Finance Commission
recommendations for devolution of funds should be enforced in true spirit.

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oo Government should go for appraisal of various rural development schemes and

programmes to uplift rural areas.
oo Promotion of rural entrepreneurship is extremely important in the context of
producing gainful employment for reducing the rural and urban gap.
oo Monitoring and evaluation of rural development programmes by providing right
information at the right time, providing timely and adequate credit and continuous
motivation of bankers, Panchayat union leaders and voluntary service organizations
will lead to the development of rural entrepreneurship and in turn rural development.
oo Efforts should be made periodically through surveys to update the number of
houseless households as per SECC data and address the governance issues.
oo To address the growing demand of water can happen by convergence of schemes of
different departments.
oo With respect to wage employment, it needs to develop appropriate mechanisms to
monitor the progress in the achievement of the assigned targets on the provision of
100 days of wage employment to the poor households.
oo GPs should mobilize resources using measures like waste to resource (segregation
at source), asset monetization, green and clean initiatives (CDM) and improving the
recovery of revenue sources (incentives / disincentives)
oo Convergence of MGNREGA with schemes of agriculture, horticulture, forestry, and
watershed departments for more employment generation to close the demand
supply gap. Further The best practices on the convergence between MGNREGS and
the provision of social infrastructure such as libraries, sports complexes, anganawadi/
school buildings and hospitals should be promoted in all the districts.
oo 7.8 lakh hectares of fallow land, should be used for productive purposes like growing
biofuel crops, encouraging income generating activities to boost the rural economy.
oo The powers, functions and provisions given to panchayats should be optimally utilized
for planning, programme implementation, budgeting, preparation, monitoring and
evaluation of decentralized plans and resource mobilization.
oo Investment on Digital Infrastructure is crucial for good governance and for promoting
efficient utilization of programmes/schemes.
oo GPs should provide IEC (Information, Education and Communication) on productivity
improvements, government schemes and policies, best practices, disaster (droughts
and floods) adaptation and mitigation strategies like desilting and deepening of
tanks/rivers, plantation activities, flood and drought tolerant varieties, changes in
cropping pattern.

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APPENDIX 4.1

Details of districtwise Houseless Households as per Socio Economic Caste Census - 2011
(SECC - Rural)

Housesless

Total Stone
District House- Grass/ Mud/ not House-
Plastic/
holds Thatch/ Unburnt Wood packed Rented less TOTAL
Polythene
Bamboo bricks with families
mortar

Bagalkot 240555 14073 1169 6804 8995 70342 16552 157 118092
Bangalore 269172 1157 761 21906 662 2343 131825 299 158953
Bangalore Rural 158426 694 399 30525 834 3665 19145 108 55370
Belgaum 735630 50395 6052 183795 17785 134607 45088 589 438311
Bellary 290257 12690 1111 39163 5878 46686 23378 113 129019
Bidar 240566 6986 4109 29087 6302 69929 5661 32 122106
Bijapur 292629 16812 1570 6865 4596 90761 17802 130 138536
Chamarajanagar 203466 5089 782 71801 5164 6815 6431 24 96106
Chikkaballapura 218901 4106 471 25362 758 8306 10270 272 49545
Chikkamagalur 206997 1404 734 72968 2214 9838 11373 229 98760
Chitradurga 282921 16074 753 50912 2861 35019 12856 194 118669
Dakshina
276202 864 640 111652 1723 34867 13689 130 163565
Kannada
Davanagere 278261 6496 1210 77185 2873 27397 15082 147 130390
Dharwad 160538 3445 310 73979 3867 17297 7713 76 106687
Gadag 134976 10129 776 40580 1821 27310 9563 47 90226
Kalaburagi 314651 15479 2797 22758 4845 105350 14990 79 166298
Hassan 348175 1558 907 170573 2519 20784 15877 156 212374
Haveri 257562 12914 1717 108016 2404 41592 14458 115 181216
Kodagu 114715 1001 664 49189 618 2956 11690 180 66298
Kolar 226042 2272 733 41107 2363 9557 9574 164 65770
Koppal 222255 10460 1991 43626 4572 46549 17394 72 124664
Mandya 351462 3191 808 104609 1961 30530 15165 288 156552
Mysore 416354 4014 2334 186903 3369 5441 19598 72 221731
Raichur 267156 52385 6316 51539 4623 39501 12080 151 166595
Ramanagara 195562 2675 2095 49476 1219 4998 13440 59 73962
Shimoga 257688 8929 1221 107671 3660 8087 13241 121 142930
Tumkur 488277 15032 1541 88452 4419 35681 24581 376 170082
Udupi 200232 738 453 52429 798 16673 8501 161 79753
Uttara Kannada 240456 6042 370 81820 2553 27108 11015 54 128962
Yadgir 158580 13702 2324 15334 2194 48551 7817 128 90050
Rural Grand Total 8048664 300806 47118 2016086 108450 1028540 555849 4723 4061572

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APPENDIX 4.2
Details of disrictwise completed houses under Basava Housing Scheme - Rural

2019-20 2020-21 2021-22 Total 2022-23

Sl.
District Name Comp- Com- Com- Com- Com-
No Target Target Target Target Target
leted pleted pleted pleted pleted*

1 Bagalkot 1848 2366 1976 2469 2770 2532 6594 7367 4777 1800
2 Ballari 2174 1979 2095 3585 3429 2358 7698 7922 2201 873
3 Belagavi 3540 6189 4354 5320 5238 5282 13132 16791 9958 2483
4 Bengaluru Rural 753 813 662 574 669 315 2084 1702 1797 904
5 Bengaluru 693 491 683 300 532 161 1908 952 1730 282
Urban
6 Bidar 1558 1938 1505 1365 3277 1984 6340 5287 5630 1541
7 Chamarajanagar 1372 1721 1437 1721 2048 1220 4857 4662 3531 1434
8 Chikkaballapur 1575 1213 1215 1351 1778 1033 4568 3597 3519 1624
9 Chikkamagaluru 1095 1036 894 1029 1508 1256 3497 3321 3317 921
10 Chitradurga 1872 1904 1907 1688 2292 1498 6071 5090 4254 1470
11 Dakshina 1231 1529 1025 1419 1378 1163 3634 4111 3477 1227
Kannada
12 Davanagere 2345 2196 1481 1711 1907 1754 5733 5661 3431 1481
13 Dharwad 1014 2213 1186 1994 1869 2022 4069 6229 2925 1356
14 Gadag 1093 1318 1416 1312 1514 1090 4023 3720 2655 997
15 Hassan 2220 2983 2296 3232 3006 2609 7522 8824 5354 2735
16 Haveri 2066 3200 2234 2590 3217 2909 7517 8699 4992 1771
17 Kalaburagi 2185 2258 2205 2026 3674 2825 8064 7109 6259 1829
18 Kodagu 457 503 347 272 607 360 1411 1135 1691 310
19 Kolar 1782 2183 1524 1793 2276 1506 5582 5482 4306 1662
20 Koppal 1580 2299 1594 2665 2546 2407 5720 7371 3934 2609
21 Mandya 1803 2865 2173 2762 2183 1723 6159 7350 4820 1824
22 Mysuru 2872 3195 2926 2845 4245 3184 10043 9224 7010 3699
23 Raichur 1840 1517 1728 1508 2026 1270 5594 4295 3727 1581
24 Ramanagara 1347 1574 1503 1990 1405 1273 4255 4837 2898 1306
25 Shivamogga 1778 1811 1501 2478 2615 2239 5894 6528 4802 2348
26 Tumakuru 2673 5285 2695 4263 3421 2861 8789 12409 6805 3513
27 Udupi 862 797 795 1251 1056 979 2713 3027 2745 929
28 UttaraKannada 1311 2341 1388 2117 2447 2258 5146 6716 4517 1589
29 Vijayanagara 0 0 0 0 0 3470 0 3470 3580 78
30 Vijayapura 2154 3225 2443 3114 4028 295 8625 6634 7088 3067
31 Yadgiri 907 1255 812 907 1039 888 2758 3050 2270 781
Total 50000 64197 50000 61651 70000 56724 170000 182572 130000 50024

* End of November 2022

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APPENDIX 4.3
Details of disrictwise completed houses under Dr.B.R.Ambedkar Nivas Scheme- Rural

2019-20 2020-21 2021-22 Total 2022-23

Sl.
District Name Com- Com- Com- com- com-
No Target Target Target Target Target
pleted pleted pleted pleted pleted*

1 Bagalkot 993 658 1178 722 865 871 3036 2251 987 672
2 Ballari 947 806 2374 1481 1652 1271 4973 3558 626 390
3 Belagavi 2368 1492 2451 1700 1984 1993 6803 5185 2294 1226
4 Bengaluru Rural 416 356 590 301 288 175 1294 832 432 317
5 Bengaluru 329 232 653 149 223 86 1205 467 413 120
Urban
6 Bidar 2794 1927 1842 1551 2965 2778 7601 6256 2645 1730
7 Chamarajanagar 704 535 1411 657 656 504 2771 1696 788 535
8 Chikkaballapur 2076 764 1896 1194 1399 1057 5371 3015 1472 1041
9 Chikkamagaluru 366 262 731 253 375 386 1472 901 582 292
10 Chitradurga 2031 1315 2371 1482 1495 1370 5897 4167 1500 1013
11 Dakshina 188 122 437 165 203 190 828 477 501 208
Kannada
12 Davanagere 2047 1220 1639 974 1019 1133 4705 3327 980 861
13 Dharwad 330 332 410 291 362 402 1102 1025 458 299
14 Gadag 1435 871 1142 1044 1073 992 3650 2907 1024 908
15 Hassan 1095 696 1572 912 989 922 3656 2530 1180 855
16 Haveri 1117 900 1473 892 1056 1024 3646 2816 1123 664
17 Kalaburagi 3589 2818 2375 2880 3143 4335 9107 10033 2519 2063
18 Kodagu 149 69 207 46 170 53 526 168 321 74
19 Kolar 1028 555 1313 658 929 577 3270 1790 1126 679
20 Koppal 1271 1177 1206 1170 1098 1314 3575 3661 1025 1195
21 Mandya 578 358 909 395 364 337 1851 1090 680 352
22 Mysuru 1417 903 2373 954 1355 1150 5145 3007 1552 1419
23 Raichur 1983 1654 2629 1733 1717 1438 6329 4825 1648 1333
24 Ramanagara 298 232 727 314 242 213 1267 759 427 273
25 Shivamogga 426 278 965 410 484 428 1875 1116 755 476
26 Tumakuru 1677 1349 2048 1596 1217 1081 4942 4026 1528 1040
27 Udupi 85 48 275 99 91 95 451 242 333 128
28 UttaraKannada 250 215 329 209 226 247 805 671 481 137
29 Vijayanagara 0 0 0 0 0 120 0 120 1158 19
30 Vijayapura 2320 1900 1606 1958 1734 2318 5660 6176 1789 1560
31 Yadgiri 693 950 868 824 626 810 2187 2584 653 555
Total 35000 24994 40000 27014 30000 29670 105000 81678 33000 22434

* End of November 2022

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APPENDIX 4.4
Details of disrictwise completed houses under Indira Awas Yojana / Pradhan Mantri Awas
Yojana (Gramin)
2019-20 2020-21 2021-22 Total 2022-23
Sl.
District Name com- com- Com- com- com-
No. Target Target Target Target Target
pleted pleted pleted pleted pleted*

1 Bagalkot 1336 273 1423 300 436 387 3195 960 1022 284
2 Ballari 2276 736 2047 650 780 511 5103 1897 1044 258
3 Belagavi 3245 1291 3648 1305 2747 2129 9640 4725 3715 1246
4 Bengaluru Rural 383 82 554 66 42 58 979 206 215 76
5 Bengaluru 239 27 583 24 9 16 831 67 107 24
Urban
6 Bidar 948 336 1562 216 198 152 2708 704 1771 203
7 Chamarajanagar 2160 1026 1260 687 1109 391 4529 2104 2150 722
8 Chikkaballapur 1567 424 1381 364 436 278 3384 1066 1054 477
9 Chikkamagaluru 446 56 717 54 93 110 1256 220 333 79
10 Chitradurga 2970 1085 1921 716 1464 593 6355 2394 2801 649
11 Dakshina 216 28 515 48 13 23 744 99 244 88
Kannada
12 Davanagere 1362 327 1403 209 236 241 3001 777 959 254
13 Dharwad 664 262 779 267 832 619 2275 1148 1104 571
14 Gadag 1100 418 1170 476 1164 631 3434 1525 1302 708
15 Hassan 835 152 1663 252 541 404 3039 808 833 324
16 Haveri 1733 632 1760 509 1097 748 4590 1889 1767 565
17 Kalaburagi 1451 450 2021 209 883 446 4355 1105 2441 487
18 Kodagu 171 31 270 8 1 35 442 74 117 8
19 Kolar 1317 386 1253 300 293 235 2863 921 962 312
20 Koppal 1571 480 1305 460 1016 832 3892 1772 1343 1175
21 Mandya 525 90 1308 252 830 419 2663 761 1109 387
22 Mysuru 2642 1051 2350 708 1169 863 6161 2622 2320 1154
23 Raichur 5666 2161 2093 1428 1985 1093 9744 4682 4103 1460
24 Ramanagara 550 137 963 204 163 202 1676 543 453 114
25 Shivamogga 793 147 1161 189 186 168 2140 504 460 271
26 Tumakuru 1810 835 2110 604 720 497 4640 1936 1373 568
27 Udupi 148 15 369 35 3 32 520 82 73 24
28 UttaraKannada 341 99 806 75 174 125 1321 299 285 114
29 Vijayanagara 0 0 0 0 0 81 0 81 1190 66
30 Vijayapura 1478 301 1822 280 445 401 3745 982 1447 446
31 Yadgiri 2057 1344 783 641 935 669 3775 2654 1903 583
Total 42000 14682 41000 11536 20000 13389 103000 39607 40000 13697

* End of November 2022

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APPENDIX 4.5
Details of disrictwise completed houses under Devaraj Urs Housing Scheme - Rural
2019-20 2020-21 2021-22 Total 2022-23
Sl.
District Name Com- Com- Com- com- com-
No Target Target Target Target Target
pleted pleted pleted pleted pleted*

1 Bagalkot 135 107 98 106 151 154 384 367 143 96

2 Ballari 179 70 125 126 279 106 583 302 68 46
3 Belagavi 768 512 225 556 952 713 1945 1781 788 554
4 Bengaluru Rural 283 136 33 109 264 91 580 336 144 113
5 Bengaluru 6 6 19 3 8 8 33 17 4 5
Urban
6 Bidar 211 101 76 140 309 332 596 573 582 435
7 Chamarajanagar 81 21 73 45 159 67 313 133 89 81
8 Chikkaballapur 86 58 61 89 203 116 350 263 139 165
9 Chikkamagaluru 15 11 45 16 55 26 115 53 25 30
10 Chitradurga 221 205 97 173 834 304 1152 682 1649 1301
11 Dakshina 1 2 13 2 1 3 15 7 5 1
Kannada
12 Davanagere 101 74 75 55 177 98 353 227 401 295
13 Dharwad 28 56 61 57 52 69 141 182 31 51
14 Gadag 37 36 72 46 58 49 167 131 55 44
15 Hassan 74 49 116 69 149 65 339 183 165 183
16 Haveri 178 204 113 182 286 258 577 644 180 151
17 Kalaburagi 221 192 130 148 312 290 663 630 339 350
18 Kodagu 3 2 16 4 7 7 26 13 4 4
19 Kolar 7 15 77 19 55 42 139 76 44 52
20 Koppal 58 102 80 136 138 150 276 388 113 207
21 Mandya 50 86 108 92 93 71 251 249 49 55
22 Mysuru 82 58 146 61 399 134 627 253 448 386
23 Raichur 138 106 87 139 209 168 434 413 228 150
24 Ramanagara 62 48 75 74 119 82 256 204 59 52
25 Shivamogga 4 3 48 4 12 11 64 18 42 33
26 Tumakuru 238 183 136 168 2202 761 2576 1112 2074 1926
27 Udupi 48 38 64 46 82 42 194 126 28 53
28 Uttara Kannada 40 65 70 64 73 82 183 211 36 38
29 Vijayanagara 0 0 0 0 0 16 0 16 149 6
30 Vijayapura 110 175 122 128 297 371 529 674 301 437
31 Yadgiri 35 61 39 39 65 114 139 214 138 219
Total 3500 2782 2500 2896 8000 4800 14000 10478 8520 7519

* End of November 2022

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APPENDIX 4.6
Details of disrictwise Rural House sites distributed
2019-20 2020-21 2020-21 Total 2022-23
Sl. Sites Sites Sites Sites Sites
District
No. Target Distri- Target Distri- Target Distri- Target Distri- Target Distri-
buted buted buted buted buted*

1 Bagalkot 156 0 156 108 217 8 529 116 217 38

2 Ballari 73 0 73 0 131 0 277 0 131 0
3 Belagavi 525 0 525 0 359 107 1409 107 359 0
4 Bengaluru Rural 81 180 81 24 92 24 254 228 92 1
5 Bengaluru 104 0 104 14 115 22 323 36 115 96
Urban
6 Bidar 136 0 136 0 197 0 469 0 197 0
7 Chamarajanagar 100 0 100 0 125 0 325 0 125 174
8 Chikkaballapura 114 436 114 86 150 30 378 552 150 2
9 Chikkamagaluru 212 134 212 53 200 0 624 187 200 0
10 Chitradurga 140 0 140 0 147 0 427 0 147 0
11 Dakshina 226 176 226 80 162 151 614 407 162 81
Kannada
12 Davanagere 181 97 181 93 132 90 494 280 132 30
13 Dharwad 113 67 113 1 152 90 378 158 152 7
14 Gadag 91 199 91 313 154 179 336 691 154 125
15 Hassan 211 0 211 0 177 45 599 45 177 47
16 Haveri 165 0 165 144 174 0 504 144 174 0
17 Kalaburagi 210 0 210 0 238 0 658 0 238 29
18 Kodagu 79 0 79 29 63 0 221 29 63 0
19 Kolar 117 358 117 38 126 35 360 431 126 4
20 Koppal 127 0 127 274 142 81 396 355 142 28
21 Mandya 184 30 184 362 158 272 526 664 158 12
22 Mysuru 208 74 208 23 170 127 586 224 170 20
23 Raichur 135 26 135 112 147 0 417 138 147 0
24 Ramanagara 105 155 105 0 78 128 288 283 78 159
25 Shivamogga 212 124 212 136 133 87 557 347 133 1
26 Tumakuru 247 311 247 253 190 263 684 827 190 189
27 Udupi 159 40 159 7 133 90 451 137 133 56
28 UttaraKannada 169 0 169 0 228 0 566 0 228 0
29 Vijayanagar 109 0 109 0 148 0 366 0 148 0
30 Vijayapura 204 130 204 0 238 0 646 130 238 0
31 Yadgiri 107 0 107 67 124 0 338 67 124 0
Grand Total 5000 2537 5000 2217 5000 1829 15000 6583 5000 1099

* End of November 2022

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Karnataka Economic Survey 2022-23

 5
CHA PT E R

URBAN DEVELOPMENT

INTRODUCTION

5.1 URBANIZATION: is sine quo non of economic development. Urbanization is an index

of transformation from traditional rural economies to modern industrial one. It is a long-
term integral process of economic growth.

Karnataka is the seventh largest state in India with 39.27 % of urban population as per
2011 census. Karnataka exhibits a fluctuating trend of urbanization with a high regional
variation and a high urban primacy. Disparities gxists in urban growth with Bangalore
being the most urbanized district (90.94 %) and Kodagu the least (14.61 %). Udupi and
Dakshina Kannada districts are urbanizing faster while Uttara Kannada, Raichur and
Gadag have registered very slow growth. 70 percent of urban population lives in 10 % of
towns /urban agglomeration, with Bangalore being the primate city. There is a positive
association between city-size and growth rate during 2001-2011. Thus, urbanization in
Karnataka reflects lopsided economic development across the state and needs special
attention. Districtwise details Decennial trends in Urbanization is shown in Appendix 5.1.

Under Urban Development sector the State aims at creating and fostering democratically
vibrant urban local bodies and providing policy framework for achieving sustainable,
efficient and equitable urban areas of the state through inclusive urban growth by working
collaboratively with Urban Local Bodies (ULB’s) , and other stakeholders. It also ensures
smart, efficient affordable and sustainable towns and cities that meet developmental
needs of all.

5.2 URBAN INDIA INDEX

NITI Aayog’s SDG Urban Index was compiled from analyzing data of 56 Urban Local Bodies
(ULB’s), 77 indicators. Shimla tops the index, followed by Coimbatore and Chandigarh.
The index ranks Bengaluru 13th with a composite score of 69.
Bengaluru topped in 2 Goals – SDG 8 – Decent Work and Economic Growth – 79 Score
and SDG 12 – Responsible Consumption and Production – 100 score.
Bengaluru topped in the following indicators with values of 100 in first 4 and 0 in the last:
1. Percentage of exclusive women Self Help Groups (SHGs) out of total bank linked
SHGs.
2. Percentage of Municipal Solid Waste (MSW) treated against MSW generated.
3. Percentage of biomedical waste treated to total quantity of biomedical waste
generated.
4. Percentage of wards using waste segregation techniques
5. Number of accidental deaths due to forces of nature per 1,00,000 population
Municipal Performance Index

Municipal Performance Index aims to empower cities to use evidence-based planning

and ensure a better quality of life for its citizens, the index measured the development
indicators in 111 municipalities across a set of five verticals, namely Governance, Services,
Finance, Technology and Planning. This index solely focuses on the enabling factors
 Urban Development
150

that would involve an assessment of the municipalities as they are lowest tiers of
administration working at the grassroots. As such, their functioning directly determines
the governance of cities.

Municipal Performance Index assess the impact of interventions from schemes such
as the Swachh Bharat Mission-Urban (SBM-U), Smart Cities Mission, Atal Mission for
Rejuvenation and Urban Transformation (AMRUT), Pradhan Mantri Awas Yojana-Urban
(PMAY-U), Deen Dayal Antyodaya Yojana National Urban Livelihood Mission (DAYNULM)
and Heritage City Development and Augmentation Yojana (HRIDAY).

Municipal Performance Index 2020 - among 51 municipalities Indore stands first in the
country in Million + population with a score of 66.08 and Bengaluru stands in 31st position
with a score of 45.02. In the category less than Million municipalities, New Delhi MC
stood first with a score of 59.92 out of 60 municipalities, while in Karnataka Tumkuru
stood at 23 (43.95), Belagavi at 33 (40.39), Shivamogga at 34 (40.39), Sagar at 40 (38.25),
Mangalore 42 (38.16) and Davanagere stood at 46th place with a score of 36.83.

SDG11 – Sustainable cities and Communities

Karnataka ranks 7th among States in SDG 11 on Sustainable cities and Communities
with a score of 78. Karnataka is in aspirant category with respect to Installed sewage
treatment capacity as a Percentage of sewage generated in urban areas with a score of
32 and value of 31.92.

Performance of Karnataka VS India for SDG11 – Sustainable cities and Communities

Indicators / States Punjab Goa Maharashtra Karnataka India Target

Deaths due to road 14.65 5.87 7.8 12.17 12.2 7.05

accidents in urban areas
(per 1,00,000 population)

Installed sewage 88.79 80.48 69.89 31.92 38.86 100

treatment capacity as a
Percentage of sewage
generated in urban areas

Percentage of individual 102 94.79 112 112 105 100

household toilets
constructed against
target (SBM(U))

Percentage of MSW 76 70 82.5 64.1 68.1 100

processed to the
total MSW generated
(SBM(U))

Percentage of urban 0.1 0 0.2 0.5 0.8 0

households living in
katcha houses

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Indicators / States Punjab Goa Maharashtra Karnataka India Target

Percentage of urban 97 95.6 94.8 93.7 87.6 100

households with
drainage facility

Percentage of wards 99.52 100 90 100 96.77 100

with 100Percentage door
to door waste collection
(SBM(U))

Percentage of wards 93.4 79.72 86.67 65.33 78.03 100

with 100Percentage
source segregation
(SBM(U))

Score (Rank) 91(1) 89(2) 87(3) 78(7) 79 100

Source: NITI Aayog (2020-21)

The State Government has various interventions targeted towards improving the various
Urban sectors as outlined below:

Urban Housing
Growth of Urban areas have led to growing demand for housing. Keeping this in view,
housing is emerging as a prime component over the period not only in providing shelter
but also in providing employment opportunities and in development of locations. To meet
the growing demand of housing, the State has been pro-active in the implementation
of its housing policies. Further, housing for the poor and downtrodden assumes greater
importance both in rural and urban areas of the State. Allocation for the housing sector
is being increased over the years along with formulation of facilitating policies and
guidelines.
Karnataka Housing Board (KHB) caters to housing needs of low income, middle income
and high-income groups. The Karnataka Slum Development Board(KSDB) is responsible
for improvement of slums and resettlement of slum dwellers.
Karnataka Government is implementing many schemes like “Vajpayee Urban Housing
Scheme”, Dr.B.R. Ambedkar Nivasa Yojane, Pradhan Mantri Awas Yojana- Housing For
All (PMAY –U), Devraj Urs Housing Scheme etc,. to caters to need of urban poor and
distribution of sites to site less persons through Vajpayee Urban Site Scheme in urban
areas for EWS site-less families in the state. These schemes are implemented through
Rajiv Gandhi Housing Corporation Limited.
During 2022-23, 2387 houses have been constructed up to November 2022 under Vajpayee
Housing Scheme. 251 houses have been constructed up to the end of the said period
under Devaraj urs Housing scheme and 1,714 houses under Dr.B.R. Ambedkar Nivasa
Yojane. Districtwise houses constructed under above schemes are given in Appendix
5.2, 5.3, 5.4, and 5.5.

One Lakh Multi Storey Bengaluru Housing Programme: As per 2011 census, the density
of population in Bangalore urban (Number of persons living in per sq. kms) is 4381, which

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exerts a heavy demand for housing. In order to cater to the need of urban poor, the
“1 Lakh Multi Storey Bengaluru Housing Programme” has been formulated based on a
Self-Sustaining model for construction of “1 Lakh multi-Storey Houses” in and around
Bengaluru for the EWS and other eligible poor on the Government land provided by
Revenue Department by mobilizing the funds under State Schemes viz., Dr. Ambedkar
Nivas Yojana and Vajpayee Urban Housing etc., in convergence with the “Pradhan Manthri
Awas Yojana (Urban) -Housing for all (HFA)” scheme of the Government of India along
with beneficiary contribution and cross-subsidy by leveraging suitable Government
lands wherever possible under PPP model. Construction of 59,476 (G+3 to S+14) Multi
Storied buildings including infrastructure have been taken up in 5 Taluks of Bangalore
Urban District in the first and second phase.

The Karnataka Slum Clearance Board was constituted in July 1975 as per Karnataka
Slum Areas (Improvement and Clearance) Act, 1973 for the welfare and development of
slums. This was re-designated as Karnataka Slum Development Board during 2010. The
main objective of the Board is to provide Basic amenities to the slum dwellers and to
provide shelter to the needy beneficiaries in the slums.

Total Urban Population (2011 Census) in lakhs 217.97

Total Slum Identified 2989
Total Number of Notified slums(as per Act) 2826
Total Number of Non-Notified Slums 166

As per the survey conducted by Board there are 2989 slum areas in state as at the end
January 2023. Out of which 410 slum areas are in Bangalore City. Totally 2826 slums are
notified in the State under the Karnataka Slum Areas (Improvement and Clearance) Act
1973 and 166 slums are Non-Notified.

Prime Minister Awas Yojan Phase –“Housing for All”

It is a centrally sponsored programme implemented in Slum Areas in the State at the

cost of Rs.10975 crores to constructing 1,80,253 houses along with Infrastructure facilities
approved by Central and State government. Central govt. share of Rs.1049.58 crores,
State Govt. Rs.1119.25 crores and Rs.1059.83 crores have been collected from Beneficiaries
in different sources in its shares at the end of November-2022.

Urban Infrastructure
Urban infrastructure consists of drinking water, sanitation, sewage systems, electricity and
gas distribution, urban transport, primary health services, and environmental regulation
in order to keep up with the demands of economic development and population growth.
This infrastructure is necessary to continue to progress societies and improve living
standards.

Water Supply and Sanitation

Karnataka is one of India’s most water-stressed states. With approximately 38% of the
state’s population living in urban areas, against 28% for the country as a whole. However,
without effective management of available resources, water will become the main
constraint on economic development.

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The Karnataka Urban Water Supply and Drainage Board (KUWS&DB) is responsible for
providing Water Supply and Sewerage in 314 urban areas of Karnataka except Bruhath
Bangalore Mahanagara Palike. The 238 urban areas is having safe drinking water from
surface source, and 76 Urban Local Bodies are being supplied drinking water from Sub-
Surface source. The Board is implementing water supply schemes from assured surface
source of water in 1) Malur, 2) Bangarpet, 3) Gajendragad, 4) Naregal, 5) Anekal, 6) Bidadi
7) Nymathi, 8) Kaup.

During the year 2022-23, there are 32 on-going Drinking Water Supply Schemes with a
budget allocation of Rs.674.05 Crores. During the current year Board aims to commission
16 water supply schemes. Among these, Water Supply scheme to Alnavara & Annigere
towns are commissioned and remaining 14 water supply schemes are in progress.

The Karnataka Integrated Urban Water Management Investment Program : (KIUWMIP)

aims to improve water resource management in urban areas in a holistic and sustainable
manner. Investment support will be provided to modernize and expand urban water
supply and sanitation (UWSS) while strengthening relevant institutions to enhance
efficiency, productivity, and sustainability in water use.

KIUWMIP is implementing ADB assisted programme to provide Under Ground Drainage

(UDG) facility and continuous water supply to selected towns/cities and reforms in Urban
Local Bodies. The cost of the project is Rs.2187.72 crore which includes Rs.975.00 crores
ADB share. This project covers 377 square Km area and benefits 1.3 million population.
The scheme period is 10 years and it is expected to complete by March 2024. During the
current year Rs.250.00 crore was allocated, of which Rs.129.55 crores were spent upto end
of the November 2022.

4 UGD works and 8 Water Supply works were taken up in Davanagere, Harihara,
Ranebennur and Byadgi towns under Tranche-1 and 6 UGD and 7 Water Supply works
in Mangaluru, Puttur, Udupi and Kundapur towns were taken up under Tranche-2 by
KIUWMIP. The total project cost under Tranche-1 and Tranche-2 are Rs. 1187.58 Crores and
Rs. 1000.14 Crores and expenditure are Rs. 986.96 crore and Rs.619.73 crore respectively
upto the end of November 2022.

Bangalore Water Supply and Sewerage Board

Bangalore Water Supply and Sewerage Board is an autonomous body formed by the
State legislature under Bangalore Water supply and Sewerage Board Act on 10-09-
1964 for Water Supply & Sewage disposal. It is one of the first Water supply & Sanitation
Utilities in India with jurisdiction of entire Bruhat Bengaluru Mahanagara Palike Area of
800 Sqkm.

It has the following mandates: Adequate water supply to meet demand; creation of
sewerage network & safe disposal of sewage; Preparation, implementation of plans &
schemes for augmenting water supply & safe disposal of sewage; Levy and collection of
water charges on ‘no loss no profit basis’ for sustainability of the system.

Since its inception in the year 1964, BWSSB has executed several water supply and
sewage schemes for the city, including the prestigious Cauvery Water Supply Scheme
(CWSS) Stages - I, II, III & Stage IV Phase - I, Phase - II and sewerage system improvement
projects concentrating on sewage collection, conveyance and treatment works. The

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existing sewerage system covers an area of 265 km2 of core area of the city, in which three
major Sewage Treatment Plants (STP) are constructed at Vrishabhavathi, Koramangala &
Challagatta and Hebbal Valleys (major and minor). The sewerage system for newly added
areas mainly the erstwhile CMC’s is nearing completion.

Initiatives taken in 2022-23

To Providing Underground Drainage Facilities (Laterals) to 110 village areas of Bruhath

Bengaluru Mahanagara Palike tender has been invited and work awarded on March-2018
for total amounting to Rs.925.06 Crore. The duration of the project is 36 months. 98%
of the project is completed. The cumulative physical progress achieved is 1512 Kms as
against 1549 Kms and cumulative financial progress achieved is Rs.787.61 Crores.

Sanitation

Proper sanitation promotes health, improves the quality of the environment and thus,
the quality of life in a community. Sanitation refers to the safe collection, transportation,
treatment and disposal of human wastes.

Sanitation is one of the most important aspects of community well-being because it

protects human health, extends life spans, and is documented to provide benefits to the
economy.

Swachh Bharat Mission

Swacch Bharath Mission (SBM) was launched on 2nd October 2014. The Mission has
the following components viz,. Household toilets, Community toilets, Public toilets,
Solid Waste Management (SWM), IEC & Public Awareness and Capacity building and
Administrative & Office Expenses (A&OE).
The main Objective of Swachh Bharat Mission is to eliminate open defecation and to
ensure scientific Management of Municipal Solid Waste. Under the said programme,
State has envisaged construction of 3.21 lakhs of Individual Household Latrines (IHHLs),
11033 Community Toilet Seats, 5407 Public Toilet Seats. Till date 3.20 lakhs Individual
Household Latrines (IHHLs) have been constructed and 40 ULB’s have been certified as
ODF(+) by Third party inspection Agency.
Administrative approvals have been accorded to 219 DPRs to establish scientific SWM
processing and disposal facilities with a total estimated cost of Rs. 1501.31 crores. Action
has been taken to prepare SWM DPRs for rest of Urban Local Bodies (ULB’s) in the State.
In the last one year 1155 IHHL’s have been constructed and 40 Urban Local Bodies (ULB’s)
have got ODF (+) certificates from Third party inspection (QCI). In the State Current
Source segregation progress is 74% and MSW Processing and Disposal progress is 47%.
Under SBM from March 2022 to till date an amount Rs. 310.42 crores have been released
for implementation of SWM components in the Urban Local Bodies (ULB’s) Karnataka.
In Swachh Survekshan 2022, Mysore, Shivamogga and Hosdurga Urban local bodies of
Karnataka have bagged the awards.
Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
The Central Government has launched this scheme with a 50: 50 ratio during 2015 and
under this 27 cities of the state with a population of one lakh and above are selected.

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Under this scheme. Govt. of India has approved Rs.4952.87 croroe for the entire mission
period of 5 years. Of this, about 4531.42 crores is earmarked for Water Supply and UGD
schemes. A total of 407 works have been approved and 356 works for Rs.3056.40 crores
are completed upto November 2022 and the balalce works are under various stages of
progress.

AMRUT 2.0

It is a Centrally Sponsored Scheme with the mission period of 2021-22 to 2025-26. AMRUT
2.0 is a step towards Aatma Nirbhar Bharat with the aim of making city’s water secure
and functional water tap connections to all households. It also targets to provide 100 %
sewage/septage management in AMRUT cities of the State.

Government order has been issued to implement the AMRUT 2.0 in 287 cities/towns
having less than one lakh population for total amount of Rs.9230.00 Crore including
Cenral Assistance of Rs.4615.00 Crore. Out of this total amount Rs.539.28 Crores has
been earmarked for Rejuvenetion of Water bodies and Green spaces and the remaining
amount of Rs.8690.00 Crore for universal coverage of water supply in all selected towns.

Smart City Mission

Government of India has launched Smart City Mission during 2015 and has contemplated
to cover in five years with an objective to provide a fillip to the development of innovative
smart solutions that directly impact the needs of the cities.In Karnataka 7 cities have
been selected under Smart City Mission and Rs.5849.91 crore (Rs.2991.91 crore from GoI
and Rs.1949.00 crores from GoK) have been released and Rs. 5061.53 crore has been spent
up to end of November 2002.

Urban Transport

Urban transit is an important dimension of mobility, notably in high density areas. The
spatial separation of human activities which creates the need for travel and goods
transport is the underlying principle of transport analysis and forecasting.

The defining trait of urban transportation is the ability to cope with this density while
moving people and goods. Density creates challenges for urban transportation because
of crowding and the expense of providing infrastructure in built-up areas.

The goal of urban transportation planning is to develop a plan for an efficient, balanced
transportation system for an urban area the one which will promote a desirable pattern
of human activities.

Sustainable transport requires fundamental changes in transport planning practice. It

requires a more comprehensive analysis of impacts, including indirect and cumulative
effects, and the consideration for more solution options. Land use and urban
transportations are interdependent. The use of public transportation needs to be
encouraged in order to reduce the stress on land transport by private vehicle owners.
In order to do this, government needs to provide a good, timely and reliable transport
facilities to public. Directorate of Urban Land Tansport (DULT) is working towards providing
sustainable Urban Transport to the state in Karnataka like service level benchmarking in
Bengaluru; preparation of policies on parking, preparation of comprehensive mobility

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plans for 16 cities; feasibility studies for mass transit systems (Suburban Rail Projects) etc.
It is also working in tandem with BBMP and other city corporations on Non-Motorized
Transport (NMT) initiatives. DULT is also spearheading the implementation of Suburban
Rail Projects in Bengaluru through K-RIDE.

Bengaluru Sub-Urban Rail Project

Bengaluru Sub-Urban Rail Project at a completion cost of Rs. 15,767.00 Crores has been
taken up for implementation through a joint venture company K-RIDE. Under the project
a total rail route of 148.17 kms will be constructed in four Sub-Urban Rail Corridors as
detailed below;

Corridors Section Length in Kms.

Corridor -1 Bengaluru- Devanahalli 41.40
Corridor -2 Byappanahalli- Chikkabanavara 25.01
Corridor -3 Kengeri- Bengaluru Cantonment 35.52
Corridor -4 Heelalige - Rajanukunte 46.24
Total 148.17

The project’s implementation will be completed in 6 years and is expected to provide

affordable and sustainable transport to around 8.9 lakh commuters daily and boost
transit-oriented development.

Civil work for corridor–II of 25.01 km from Byappanahalli to Chikkabanavara has been
awarded to L&T with a completion period of 27 months and implementation of preliminary
works is in progress. Besides tenders for civil works for corridor IV from Heelalige to
Rajanukunte and procurement, operation and maintenance of rolling stock on Public
Private Partnership (PPP) mode will be floated.

Suburban Services in two sections by doubling of tracks

Two projects of doubling of tracks between Byappanahalli (BYPL) – Hosur (HSRA) for a
length of 48 Kms and Doubling of Yeshwanthpur (YPR) – Chennasandra (CSDR) (chord
line) section for a length of 21.7 Kms with electric traction and automatic signalling are
taken up on 50:50 cost sharing between GoK and MoR at a revised total project cost of Rs.
812.83 Crores. This would facilitate providing Suburban Rail services in the existing long-
distance tracks. For implementation of this project GoK has released Rs. 100.00 Crores so
far. GoI has released Rs. 105.02 Crores.

Bus Priority Lanes

Bengaluru Bus Priority Lanes

The Comprehensive Mobility Plan for Bengaluru (2020) has set target to increase the
public transport mode share to 70% by 2035 to keep Bengaluru moving efficiently.
Bus transport being the backbone of mobility in Bengaluru, Bus Priority Lanes (BPL)
is a critical infrastructure required for the city to promote public transport usage. The
CMP proposes to implement 202 km of BPL by 2035 in addition to other measures like
expansion of mass transit network, up gradation of bus fleet etc.

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The Government has identified 12 major arterial roads (191 km) in Bengaluru as High-
Density Corridors. The vision for HDC is to facilitate multimodal travel, with priority to
sustainable modes like public transport, cycling and walking. The HDCs will be maintained
to high-level of standards to ensure improved mobility for people.

Bus Priority Lanes for approx. 65 km on High Density Corridors and 21.5 km on stretches
under National Highway Authority jurisdiction have been designed and shared with the
respective implementing agencies.

Bengaluru Metro Rail Corporation Limited (BMRCL)

In order to augment to the public transportation in Bangaluru and also to reduce the
pressure of traffic, Metro Rail has come up in Bengaluru. It is a vital component of the
transformation of the urban transport scenario. With urban population continuously
growing, there is a need for green solutions. Mass Rapid Transit Systems are fast, safe and
comfortable to travel. This alone will encourage people to switch over from personalized
vehicles to public transport.

Bangalore Metro Rail Project Phase-1 having a total track length of 42.3 Kms, is already
running from past several years. East to West from Byaippana halli to Mysore Raod (18.10
Kms) and North to South from Nagasandra to Yelachenahalli ( 24.20 kms).

Bangalore Metro Rail Project Phase-2 consists of 4 Extensions to the existing lines and
2 New Lines. The total length of Phase-2 is 75.06 km with 61 stations (49 Elevated and 12
Underground). The estimated project cost is Rs. 30695 Crore. Reach-6 New Line (Under
Ground): From Dairy Circle to Nagawara13.76 Kms.,Civil works are under progress. All
works are in progress, as on November-2022 Physical and Financial progress are 73.50%
& 78.20% respectively.

Bangalore Metro Rail Project Phase-2A and 2B

The construction of 58.19 km long Outer Ring Road – Airport Metro,Phase-2A Central
Silk Board junction to K.R. Puram and Phase-2B K.R. Puram to Bengaluru International
Airport via Hebbal at an estimated cost of Rs. 14,788.10 crore. Civil works are started and
details are as below:
oo Phase-2A: Land Acquisition has been completed. Utility Shifting is nearing to
completion. Civil works are in progress.
oo Phase-2B: 95% Land Acquisition has been completed. 70% Utility Shifting are
completed. Civil works are in progress. The project is programmed to complete by
September 2025.
Proposed Project:

Bangalore Metro Rail Project Phase-3:

The Government has approved to take up 45 Kms., ‘Outer Ring Road- West metro’ in
the following routes. Kempapura to J.P. Nagar 4th Phase: 32.15 Kms and Magadi Road
from Hosahalli Metro Station to Kadabagere: 12.50 Kms. These lines are proposed to be
constructed through equal share holding owned by GoI & GoK.

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Bruhath Bengaluru Mahanagara Palike (BBMP)

The Bengaluru Mahanagara Palike (Bengaluru City Corporation) was established in 1949
by merging two separate municipalities, which were in charge of the administration of
the “City Area” and the Cantonment Area of the city and the Population of Bengaluru
at that time was about 0.75 million. During 2007, Bruhath Bengaluru Mahanagara Palike
was formed (BBMP) comprising of 8 zones viz, R.R.Nagar, Bommanahalli, Dasarahalli,
Mahadevapura, Yelahanka, Bangalore East, Bangalore South and Bangalore West.
BBMP has taken up many infrastructure projects to improve the infrastructure of the
city, Flyovers, Underpasses, Grade separators, Signal free roads, road widening which
smoothened the traffic flow of the city. During the year 2022-23 a sum of Rs.3000.00
crore has been sanctioned, of which a sum of Rs.2250.00 crore has been spent for special
infrastructure projects.

Bengaluru Development Authority (BDA)

Bengaluru Development Authority has undertaken the formation of a new layout viz.
Nada Prabhu Kempegowda Layout. About 23318 sites of different dimensions have been
formed and 8680 sites have been allotted to the general public. About Rs.1169.60 crores
have been spent on water supply, drainage and utility duct works and Rs. 739.76 crores
spent on civil works.

Urban Local Bodies (ULB’s) and Municipal Finance in Karnataka

Directorate of Municipal Administration (DMA)
Role & Responsibilities
oo Nodal Agency for regulating day to day governance of 315 ULBs including Corporations
in the State (except BBMP)
oo Supervising administration in Corporations & ULBs as mandated in Corporations Act,
Municipal Acts and its interpretation.
oo Facilitating implementation and monitoring of schemes of State and Central
Government.
oo Formulating recruitment and service rules for corporations, municipal employees
and officers.
oo Regulating service delivery in Corporations & ULBs.
The Directorate of Municipal Administration is the Nodal Agency to monitor the
Administrative, Developmental and Financial Activities of the Corporations & ULBs
coming under its jurisdiction.

Chief Minister Amrutha Nagarothana (Municipality) Phase-4

This project is implemented in 302 ULBs with an allocation of Rs.3885.00 crore.

Drinking Water Supply works, road improvement, road side drains, footpath and traffic
Management, Storm water drains, improvement and construction of office building,
community and public toilets, modern bus stand and market complex have been
prioritized. An expenditure of Rs.6.00 crore has been incurred against the released
amount of Rs.37.50 crore by completing up to the end of November 2022.

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Many initiatives have been taken up by DMA in order to make the provide hassel free
and citizen friendly services to people of the state. Some of them are as follows:

oo Bharath Bill Payment System has been integrated with e-sweekruthi to enable online
payments in all ULBs. By participating in the Bharat Bill Pay scheme, the biller will be
able to receive payments from third party channels for the services provided to the
customer. A biller may tie up with up to two BBPOUs to access the entire universe of
its consumers and all payment channels.
oo Integration of Point of sale machine (POS) with e-sweekruthi is under tender stage.
oo Integration of Utilities Management (Mobile Tower and OFC) application with
Gathishakti Sanchar Portal.
oo Initiated for integration of Utilities Management application with common portal
developed under Sevasindhu.
oo About to complete IT and Non-IT works in establishing smart city data centre.
oo Aasthi Khanaja (property digitization) application for the digitization of KMF-24 is
developed and implemented in all ULBs.
oo Training and capacity building on Aasthi Khanaja application.
oo Latest information is made available in websites of all ULBs, DUDCs, DMA and UDD.
oo Decision has been taken to adopt 3D drone technology in proposed GIS based
property survey in pilot ULBs.
15th Finance commission Grants (2021-22)

The Central Government has allocated total of Rs.750.00 crore to the Urban Local Bodies
of the State (Non-million plus cities). The grants has been divided into 2 parts – 60% Tied
Grants should be compulsorily used equally for drinking water supply and solid waste
management and the remaining 40% grants is Untied and can be used for other basic
infrastructure facilities enshrined in the 12th Schedule.

Solid Waste Management

Solid Waste Management is one of the basic functions of the Municipalities. Rapid
urbanization, heterogeneous nature of waste, lack of awareness among the public
and various other stake holders, lack of appropriate infrastructure, disintegrated &
unscientific approach of waste management has made the waste management into an
unmanageable situation.

There are totally 315 Urban Local Bodies (ULBs) in the State including BBMP. 313
ULBs generates 11085 tons of municipal solid waste every day. As per the Solid Waste
Management Rules, 2016 of Ministry of Environment, Forest and Climate Change, all the
ULBs are responsible for development of necessary infrastructure for collection, storage,
segregation, transportation, processing and disposal of municipal solid wastes.

Karnataka has formulated a policy on Integrated Solid Waste Management and the
main objective of this policy are

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a) Providing directions for carrying out waste management activities in a manner which
is not just environmentally and financially sustainable but also economically viable;
b) Establishing an integrated and self contained operating system for Municipal Solid
Waste Management (MSWM) which would include the development of appropriate
means and technologies to handle various waste management activities
c) Enhancing the ability of ULB’s to provide waste management services to their citizens.
Unbalanced Growth, Inclusive Development

Regional disparities have been a prominent feature of Karnataka’s economy. Economic

concentration and Regional disparities are global phenomenon. Economic growth has
been unbalanced in developing countries and so has been urbanization. This continues
to be so in spite of State policies of proving incentives to attract private investments to
backward areas. Hence , it is required to raise the living standards of people residing
in backward areas by focusing on Human Development – Education, Health, Nutrition,
Sanitation and improving connectivity or reducing distance.

5.3 OTHER ISSUES

E-waste

E-waste poses the huge risk to humans, animals, and the environment. E-waste typically
consists of plastics, metals, cathode ray tubes (CRTs), printed cables, circuit boards, and
so on. The valuable metals like copper, silver, gold, and platinum can be reused from
e-wastes once they are scientifically processed. The presence of toxic substances like
liquid crystal, lithium, mercury, nickel, selenium, polychlorinated biphenyls (PCBs),
arsenic, barium, brominates flame retardants, cadmium, chrome, cobalt, copper, and
lead makes it very hazardous, in case e-waste get dismantled and processed in a crude
manner with the rudimentary techniques.

The computers, mainframes, servers, monitors, printers, scanners, compact discs (CDs),
copiers, calculators, battery cells, cellular phones, fax machines, transceivers, TVs, medical
apparatus, iPods, refrigerators, washing machines, and air conditioners are examples of
e-waste when they become unfit for its use. The presence of highly toxic substances and
heavy metals like mercury, lead, beryllium, and cadmium pose a significant threat to an
environment even in minute quantities.

E-waste management is a great challenge for governments of many developing

countries. It is becoming a huge public health issue and is exponentially increasing by
the day. It has to be collected separately, treated effectively, and disposed of e-waste. It is
also a diversion from conventional landfills and open burning. It is essential to integrate
an informal sector with the formal sector. The competent authorities needs to establish
mechanisms for handling and treating e-waste safely and sustainable manner.

In this regard, Ministry of Environment, Forest And Climate Change, Government of India
has framed draft rules, namely the E-Waste (Management) Rules, 2022.

E-Mobility
According to Bureau of Energy Efficiency, Ministry of Energy, Government of India, the
transport sector accounts for 18% of total energy consumption in India. This translates to

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an estimated 94 million tonnes of oil equivalent (MTOE) energy. If India were to follow
the current trends of energy consumption, it would require an estimated 200 MTOE
of energy supply annually, by the year 2030 to meet the demand of this sector. At the
moment, this demand is being met mostly through imported crude oil, which therefore
makes this sector vulnerable to the volatile International crude oil prices. Moreover, the
sector also contributes an estimated 142 Million Tonnes of CO2 emissions annually, out of
which 123 million tonnes is contributed by the road transport segment alone.

Keeping in view the climate change commitments made by Government of India during
the COP21 Summit held at Paris to reduce emission intensity by 33- 35% by 2030 from
2005 levels, it is pertinent to introduce alternative means in the transport sector which
can be coupled with India’s rapid economic growth, rising urbanization, travel demand
and country’s energy security. Electric mobility presents a viable alternative in addressing
these challenges, when packaged with innovative pricing solutions, appropriate
technology and support infrastructure and thus, has been on the radar of Government of
India. Electric mobility will also contribute to balancing energy demand, energy storage
and environmental sustainability.

Shifting to electric mobility will help India save nearly one giga tonne of carbon dioxide
emissions by 2030. Each electric car on the road helps in reducing the harmful air
pollution for the younger generations to come.

Waste to Resource

Waste-resources means all those materials managed by or on behalf of the Municipality

as recyclable, compostable, household hazardous waste, or residual waste.

The waste-to-resource approach promotes a paradigm shift in the management of solid

waste. Under this approach, rather than view waste as a problem and burden, it is seen
as a valuable resource, one that can be managed to produce sustainable benefits.

Energy from waste can be used to produce heat or electricity, which might then replace
the energy produced using coal or other fuels. Energy recovery of waste can thus help
reduce greenhouse gas emissions. Recycling can help even more to lower greenhouse
gas emissions and other emissions.

Recycling is the process of converting waste materials into new materials and objects.
The recyclability of a material depends on its ability to reacquire the properties it had in
its virgin state. It is an alternative to “conventional” waste disposal that can save material
and help lower greenhouse gas emissions.

Green Bonds

Green bonds are bonds issued by any sovereign entity, inter-governmental groups or
alliances and corporates with the aim that the proceeds of the bonds are utilised for
projects classified as environmentally sustainable. The framework for the sovereign
green bond was issued by the government on November 9, 2022.

Over the last few years, Green Bonds have emerged as an important financial instrument
to deal with the threats of climate change and related challenges. According to the
International Finance Corporation (IFC), a World Bank Group’s institution, climate change

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threatens communities and economies, and it poses risks for agriculture, food, and water
supplies.

A lot of financing is needed to address these challenges. It’s critical to connect

environmental projects with capital markets and investors and channel capital towards
sustainable development – and Green Bonds are a way to make that connection.

Green Bonds provide a means to hedge against climate change risks while achieving at
least similar, if not better, returns on their investment. In this way, the growth in Green
Bonds and green finance also indirectly works to disincentivise high carbon-emitting
projects.

5.4 CHALLENGES TO URBANIZATION

Despite the various interventions, support and schemes for Urban development, there
exists challenges.

Low performance in SDG Urban India Index in following parameters:

1. Percentage of houses completed against sanctioned under PMAY (Urban)

2. Total case notification rate of Tuberculosis per 1,00,000 population
3. Percentage value of smart city projects completed against tendered
4. Percentage of schools having ramp with hand rails
5. Rate of crimes against women per 1,00,000 female population
6. Coverage of stormwater drainage network (per km X 100)
7. Percentage of schools having CWSN friendly toilet
8. Number of urban poor provided credit facilities per 10,000 population
9. Data Maturity Assessment Framework Score
10. Percentage of households with any usual member covered by any health scheme or
health insurance
Unbalanced Urbanization

As in the case of economic and human development, there are serious regional imbalance
in urban development in Karnataka. Much of the imbalance is caused by huge gap due
to Bangalore centric development w.r.t the size and economic role of Bangalore and
the next largest cities in the state. The enormous advantages Bangalore enjoys pull
migrants and investors to the capital city, which in turn exerts pressure on Bangalore’s
infrastructure and services. How to accelerate the urban development in other regions of
the state without sacrificing the interest of Bangalore constitutes a formidable challenge.

Urban Land Management

Supply of serviced land is critical to urban development. The absence of a well developed
urban land market and the increasing demand for serviced land has resulted in rising

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land prices, speculations and growth of informal settlements. Poor land management is
a serious problem in all urban areas which is reflected in violation of land use regulations.

Urban Housing

Housing is recognized as a basic human right. The population living in urban slums in
Karnataka has increased from 14.02 lakh (2001) to 32.91 lakh (2011) an increase 18.89 lakhs
in a decade. In other words, the slum population which was 7.8 % to the total urban
population in 2001 census has been increased to 13.9 % during 2011 census. Bengaluru
district has 21.94 per cent of the total slum population.

Infrastructure Gap

In spite of many initiations and programmes taken up by state government and cental
assited programmes, there is a growing demand for urban infrastructure like water supply,
sanitation and energy. Due to inordinate growth in urban population, sustainability of
the primary source supply of safe drinking water as well as sanitation and drainage in
cities and towns is posing a serious challenge.

Roads Infrastructure

Roads constitutes the arteries of cities and are critical to rapid urban development. Urban
Karnataka suffers from serious deficiencies in road infrastructure like inadequate road
capacity, poor quality of roads, impediments on roads such as potholes, depressions etc
which hinder free movement of vehicles and leads to traffic congestion and also cause
accidents.

Environmental Sustainability

Sustainable urban development is not a choice but a necessity if cities are meet the
needs of their citizen. Some of the most critical problems facing our cities concern the
health impacts of urban pollution generated by inadequate water, sanitation, drainage,
poor waste management and air pollution. This set of problems known as ‘Brown
Agenda” combined with “Green Issues’” such as depletion of water and forest resources,
up-gradation of environmentally fragile lands, areas prone to flooding, landslides etc
and the carbon emissions from energy use, industry and transport known as “Climate
Change Issues” all poses serious challenges to the health of the eco system of a city
and its people. To tackle these issues, an Urban Environmental Management Action
Plan needs to be formulated. A city specific plan would be required for large cities like
Bangalore, Hubli-Dharwad, and Mangalore, Mysore and a common strategy for other
towns/cities in the state.

5.5 WAY FORWARD

oo Bengaluru has the potential to become e-waste hub due to IT capital of India. E
Waste Management is a great change maker in the Circular economy of this State.
The E Waste Management itself can produce an estimated turnover of Rs.2,900
crores per annum in Karnataka. e-Waste Generation is the tune of 2.9 lakh MT/annum
amounting to Rs.2,886 crore. Out of the total 2.9 lakh MT/annum, recovered Rs.317
crores and loss is estimated to the tune of Rs.2,569 crores. KSPCB has set up around
200 e-waste collection bins across the city and have tied up with the RWAs. There is a

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need of ULBs to increase segregation at the source level so that e-waste, biomedical
waste, sanitary waste, and every other kind is separated during collection.
oo Currently only 32% Installed sewage treatment capacity as a Percentage of sewage
generated in urban areas. Increasing Sewage segregation and treatment through
Public Private Partnership (PPP).
oo Government cannot rely solely on central subsidies for promoting e-mobility, and
hence need to attract more private investment to the State. R & D for retrofitting &
petrol and diesel vehicles can be a good option. All future purchases of government
vehicles and hiring of government vehicles should be Electric Vehicles.
oo Huge quantities of plastics were seen dumped at the sites without recovering the
plastic for channelisation to recyclers. Hence, compulsory segregation at all levels
(specifically at source) collecting and selling points will be implemented using
incentivizing and disincentivizing policy options. A good example is collecting extra
deposit and return that extra deposit when plastic bottles are provided back by the
shops (Deposit Refund Scheme).
oo Most of the plastic waste is recycled by the informal sector, waste-pickers, however,
suffer from price volatility and lack of transparency in the supply chain. Hence
initiatives on institutionalizing and strengthening value chains required.
oo Slum dwelling should be eradicated by providing eco-friendly affordable housing.
oo Climate change should be compensated by enhancing Green Building
oo Proper and efficient Solid Waste Management (SWM) and optimum utilization of
SWM resources
oo Targeted Credit & financing for the urban poor should be implemented (similar to
SIDBI’s initiative for street vendors)
oo Ensure that every citizen should have social security and health insurance
oo Proper planning for Bengaluru – with vision 2047 by ensuring Preparation,
Implementation and enforcement of laws
oo Fiscal responsibility and decentralizing finance in ULB management
oo Karnataka needs to work on achieving the goals set by United Nations under SDG-11
(Sustainable Cities) to be achieved by 2030.
oo Need for Comprehensive State urban plan for effective and timely implementation
of policies and schemes.
oo Ensure access for all through adequate, safe and affordable housing and basic
services and upgrade slums, transport systems for all, improving road safety, notably
by expanding public transport.
oo Provide special attention to the needs of those in vulnerable situations, women and
children, persons with disabilities and older persons.
oo Reduce the adverse per capita environmental impact of cities, through special
attention to air quality and municipal and other waste management.

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oo Provide universal access to safe, inclusive and accessible, green and public spaces.
oo Support positive economic, social and environmental links between urban, peri-
urban and rural areas by strengthening national and regional development planning.
oo Secondary cities and the rural areas should be developed to reduce the lopsided
spatial development currently happening in India. Setting up satalite towns in
Kalyana Karnataka region utilising cental funds.
oo Urban flooding is significantly different from rural flooding as urbanization leads to
developed catchments, which increases the flood peaks from 1.8 to 8 times and flood
volumes by up to 6 times. Interdepartmental coordination with Urban Development
Department, water resources and KSNDMC is crucial for preparedness and control.
High use of Digital technologies should be made available as well by way infrastructure
development using PPP. Further effective coordination between BWSSB and BBMP
is required to control floods.
oo Implementation of strong regulatory framework to stop encroachments of
government lands and get back the encroached lands swiftly as well.
oo Special emphasis to be given for lift irrigation projects for supplying treated water from
Bengaluru to neighboring dry districts through state/centre/private investments.
oo Providing slums all entitlements through development of vertical slums under
Public Private Partnership (PPP) and remaining land to be brought under asset
monetization for generating revenues.
oo City Comprehensive Mobility plans (CMP) to be completed for all cities and ULBs,
prioritizing areas witnessing heavy traffic congestions.
oo Implement water management and accounting measures across Urban Local Bodies
(ULB’s) , e.g., replicate UFW project (unaccounted for water) carried out in Bangalore
to include all major cities.
oo Decongestion of establishing townships on Public Private Partnership (PPP).
oo Resource mobilization measures are waste to resource, timely tax collection,
increasing value of land considering the market value, clean and green initiatives,
green bonds, private partnerships.

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APPENDIX 5.1

District-wise Urbanisation in Karnataka 2011

Sl. No. Districts % of Urbanisation

1 Bagalkote 32
2 Bangaluru 91
3 Bangaluru (Rural) 27
4 Belagavi 25
5 Ballari 38
6 Bidar 25
7 Vijayapura 23
8 Chamarajanagar 17
9 Chikkaballapura 22
10 Chikkmagaluru 21
11 Chitradurga 20
12 Dakshina Kannada 48
13 Davanagere 32
14 Dharawad 57
15 Gadag 36
16 Kalaburgi 33
17 Hassan 21
18 Haveri 22
19 Kodagu 15
20 Kolar 31
21 Koppal 17
22 Mandya 17
23 Mysuru 41
24 Raichur 25
25 Ramanagara 25
26 Shivamogga 36
27 Tumkuru 22
28 Udupi 28
29 Uttara Kannada 29
30 Yadagiri 19
Karnataka 39

Source : 2011 Census

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APPENDIX 5.2

Details of Districtwise houses completed under

Vajapayee Urban Housing Scheme -2019 to 2022

2019-20 2020-21 2021-22 Total 2022-23

Sl.
District Name
No. Comple- Comple- Comple- Comple- Comple-
Target Target Target Target Target
ted ted ted ted ted *

1 2 3 4 5 6 7 8 9 10 11 12

1 Bagalkot 302 462 770 292 700 334 1772 1088 654 218

2 Ballari 418 487 872 249 264 104 1554 840 488 68

3 Belagavi 387 712 840 356 910 416 2137 1484 1160 370

4 Bengaluru Rural 76 137 160 37 123 18 359 192 202 43

5 Bengaluru 19 28 21 6 37 5 77 39 243 6
Urban

6 Bidar 135 139 460 43 395 53 990 235 381 91

7 Chamarajanagar 85 154 176 78 181 59 442 291 198 36

8 Chikkaballapur 141 160 208 63 166 41 515 264 240 32

9 Chikkamagaluru 46 73 141 26 64 20 251 119 206 15

10 Chitradurga 114 87 290 59 146 23 550 169 242 73

11 Dakshina 81 147 139 47 139 56 359 250 407 19

Kannada

12 Davanagere 122 173 197 65 147 43 466 281 594 81

13 Dharwad 106 153 225 88 340 74 671 315 337 47

14 Gadag 364 227 713 136 327 163 1404 526 497 109

15 Hassan 68 73 99 24 128 15 295 112 248 54

16 Haveri 153 286 361 103 287 79 801 468 356 48

17 Kalaburagi 309 236 1013 78 382 120 1704 434 511 52

18 Kodagu 19 15 48 4 47 4 114 23 101 6

19 Kolar 71 135 152 48 210 32 433 215 265 22

20 Koppal 190 414 444 375 302 128 936 917 302 160

21 Mandya 57 77 110 23 144 9 311 109 263 32

22 Mysuru 225 351 366 109 317 85 908 545 521 45

23 Raichur 498 252 1955 44 247 90 2700 386 485 93

24 Ramanagara 66 139 145 68 124 43 335 250 206 32

25 Shivamogga 137 203 349 139 456 142 942 484 495 90

26 Tumakuru 115 232 268 39 214 46 597 317 414 47

27 Udupi 51 109 122 68 152 113 325 290 192 45

28 Uttara Kannada 85 162 150 35 192 35 427 232 369 52

29 Vijayanagara 427 927 1331 500 1270 734 3028 2161 317 303

30 Vijayapura 0 0 0 0 366 149 366 149 826 3

31 Yadgiri 133 214 375 120 223 133 731 467 280 95

Total 5000 6964 12500 3322 9000 3366 26500 13652 12000 2387

* End of November 2022

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APPENDIX 5.3

Details of Districtwise houses completed under-

Devaraj Urs Housing Scheme Urban-2019 to 2022

Sl. 2019-20 2020-21 2021-22 Total 2022-23

District Name
No. Target Completed Target Completed Target Completed Target Completed Target Completed *

1 2 3 4 5 6 7 8 9 10 11 12
1 Bagalkot 29 18 0 27 0 27 29 72 72 28
2 Ballari 46 1 0 3 0 0 46 4 5 0
3 Belagavi 90 36 0 19 0 33 90 88 285 40
4 Bengaluru Rural 7 1 0 0 0 0 7 1 24 1
5 Bengaluru Urban 1 0 0 1 0 0 1 1 2 1
6 Bidar 12 0 0 0 0 0 12 0 46 4
7 Chamarajanagar 1 0 0 0 0 0 1 0 2 0
8 Chikkaballapur 1 0 0 1 0 0 1 1 4 0
9 Chikkamagaluru 15 20 0 11 0 4 15 35 33 9
10 Chitradurga 7 0 0 0 0 3 7 3 1 1
11 Dakshina 1 0 0 0 0 0 1 0 1 0
Kannada
12 Davanagere 37 6 0 14 0 12 37 32 78 5
13 Dharwad 5 4 0 4 0 0 5 8 11 2
14 Gadag 34 9 0 7 0 22 34 38 113 11
15 Hassan 7 0 0 0 0 0 7 0 6 2
16 Haveri 2 1 0 0 0 0 2 1 4 0
17 Kalaburagi 4 6 0 3 0 5 4 14 75 10
18 Kodagu 0 0 0 0 0 0 0 0 0 0
19 Kolar 1 0 0 0 0 0 1 0 1 0
20 Koppal 9 3 0 13 0 9 9 25 60 7
21 Mandya 0 0 0 1 0 0 0 1 1 1
22 Mysuru 12 8 0 4 0 4 12 16 21 1
23 Raichur 12 6 0 0 0 0 12 6 29 4
24 Ramanagara 0 0 0 0 0 0 0 0 2 1
25 Shivamogga 0 0 0 0 0 0 0 0 2 0
26 Tumakuru 12 5 0 0 0 0 12 5 8 0
27 Udupi 0 0 0 0 0 0 0 0 0 0
28 UttaraKannada 0 0 0 0 0 0 0 0 0 0
29 Vijayanagara 0 0 0 0 0 0 0 0 30 0
30 Vijayapura 134 138 0 102 0 136 134 376 329 80
31 Yadgiri 21 5 0 11 0 42 21 58 235 43
Total 500 267 0 221 0 297 500 785 1480 251

* End of November 2022

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APPENDIX 5.4

Details of Districtwise Houses completed under

Dr.B.R. Ambedkar Nivas Scheme Urban -2019 to 2022

2019-20 2020-21 2021-22 Total 2022-23

Sl.
District Name Com-
No Target Completed Target Completed Target Completed Target Completed Target
pleted *

1 2 3 4 5 6 7 8 9 10 11 12
1 Bagalkot 283 229 480 147 136 104 899 480 234 90

2 Ballari 909 514 1389 270 277 242 2575 1026 450 149

3 Belagavi 438 318 715 110 202 234 1355 662 312 194

4 Bengaluru Rural 136 70 179 26 60 18 375 114 107 32

5 Bengaluru Urban 83 23 82 11 27 9 192 43 51 11

6 Bidar 269 200 528 72 169 66 966 338 320 67

7 Chamarajanagar 201 113 280 59 73 67 554 239 127 41

8 Chikkaballapur 144 85 225 46 69 44 438 175 125 27

9 Chikkamagaluru 40 26 65 14 21 14 126 54 42 21

10 Chitradurga 310 63 331 65 90 48 731 176 161 57

11 Dakshina Kannada 70 30 129 25 41 26 240 81 72 17

12 Davanagere 273 65 151 57 37 30 461 152 71 50

13 Dharwad 109 62 179 81 43 25 331 168 73 22

14 Gadag 219 51 194 37 68 37 481 125 179 67

15 Hassan 158 38 154 27 53 22 365 87 98 25

16 Haveri 114 45 130 28 37 27 281 100 62 15

17 Kalaburagi 356 106 612 113 199 319 1167 538 270 79

18 Kodagu 37 13 37 5 12 2 86 20 23 6

19 Kolar 78 19 137 6 52 4 267 29 113 10

20 Koppal 269 177 416 200 94 77 779 454 158 95

21 Mandya 49 27 66 16 21 7 136 50 43 17

22 Mysuru 748 318 582 155 168 121 1498 594 283 77

23 Raichur 333 110 392 31 189 80 914 221 342 89

24 Ramanagara 163 57 140 39 43 38 346 134 74 32

25 Shivamogga 173 44 132 25 44 36 349 105 74 21

26 Tumakuru 198 112 329 29 106 78 633 219 183 53

27 Udupi 22 9 45 8 14 15 81 32 31 5

28 UttaraKannada 87 48 93 18 29 20 209 86 42 20

29 Vijayanagara 0 0 0 0 117 97 117 97 201 0

30 Vijayapura 502 386 1208 322 342 617 2052 1325 435 214

31 Yadgiri 229 147 600 166 167 231 996 544 244 111

Total 7000 3505 10000 2208 3000 2755 20000 8468 5000 1714

* End of November 2022

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APPENDIX 5.5
Details of Districtwise Houses Sites completed under -
Urban House Sites Scheme-2019 to 2022

2019-20 2020-21 2021-22 Total 2022-23

Sl.
District Sites Sites Sites Sites Sites
No.
Distributed Distributed Distributed Distributed Distributed
1 Bagalkot 122 0 0 122 4
2 Ballari 0 0 0 0 43
3 Belagavi 14 0 52 66 0
4 Bengaluru Rural 0 0 22 22 44
5 Bengaluru Urban 12 0 0 12 0
6 Bidar 0 0 0 0 0
7 Chamarajanagar 0 0 0 0 0
8 Chikkaballapura 72 16 0 88 54
9 Chikkamagaluru 0 1 0 1 0
10 Chitradurga 0 1 89 90 59
11 Dakshina 66 0 0 66 0
Kannada
12 Davanagere 117 0 0 117 10
13 Dharwad 623 41 322 986 88
14 Gadag 0 0 0 0 308
15 Hassan 12 0 2 14 0
16 Haveri 0 0 44 44 0
17 Kalaburagi 0 312 0 312 0
18 Kodagu 0 0 0 0 0
19 Kolar 4 0 0 4 0
20 Koppal 0 0 0 0 296
21 Mandya 0 4 0 4 0
22 Mysuru 0 0 0 0 77
23 Raichur 350 0 324 674 0
24 Ramanagara 0 84 0 84 64
25 Shivamogga 19 7 0 26 28
26 Tumakuru 42 0 11 53 0
27 Udupi 0 0 0 0 0
28 UttaraKannada 0 0 0 0 0
29 Vijayanagar 0 0 0 0 0
30 Yadgiri 376 36 0 412 0
31 Vijayapura 46 0 0 46 0
Grand Total 1875 502 866 3243 1075

* End of November 2022

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AVALOKANA

URBAN DEVELOPMENT

Allocation Total
Scheme Name Release
(BE+SE) Expenditure

Support to BWSSB to Provide Drinking 6.00 3.00 4.56

Water to Slums
Election to ULB’s -Establishment 0.91 0.91 0.60
Unspent SCSP-TSP Amount as per the 6.17 6.17 5.26
SCSP-TSPAct 2013
NadaprabhuKempegowda Heritage Site 0.06 0.00 0.00
Development Authority
Administrative Expenses for KUIDFC 6.00 4.50 7.20
Elections to Urban Local Bodies in the 35.00 2.06 1.24
State
Karnataka Integrated Urban Water 250.00 0.00 145.12
Management Investment Programme-
Jalasiri EAP
Cash loss of BMRCL 233.80 233.80 234.95
Bangalore Metropolitan Task Force 4.46 4.46 3.54
Reimbursement of Taxes & Duties to 300.00 300.00 300.00
BMRCL
Capital Support to Urban Water Supply 400.00 300.00 408.99
Schemes
Capital Support to Urban Sanitation 200.00 150.00 221.77
Schemes
Karnataka Urban Water Supply 400.00 0.00 80.18
Modernisation Project-EAP
Capital Support to Special Infrastructure 3000.00 3000.00 3250.00
Projects of Bangalore
Equity Investment (BMRCL) 415.93 0.00 1095.85
Bengaluru Water Supply and Sewerage 1341.84 340.03 523.57
Project(BWSSP) Phase III (Cauvery Water
Supply Scheme-Stage-V)-EAP
Loans for BMRCL 564.75 8.22 697.19
Support to BMRCL for Debt Repayment 500.00 0.00 725.22
DUDC 29.80 28.86 17.68
Establishment Charges 9.85 9.95 7.09
Director of Municipal Adminstration 11.03 11.44 8.61
Assistance to Municpal Corporations - 2663.89 2583.44 1652.36
General

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure

Assistance to Municpal Corporations 354.87 349.88 246.07

15th Finance Commission Grants - 666.85 185.37 116.10
Corporations
PouraKarmika’s Housing Scheme 15.00 15.00 25.92
Assistance to CMCs/TMCs - General 1304.60 1304.60 844.75
Assistance to CMCs/TMCs 165.66 162.46 84.27
AMRUT Nagarothana for ULBs (Excluding 150.00 75.00 29.79
corporations)
15th Finance Commission Grants - CMCs/ 418.84 125.65 0.00
TMCs
Assistance to TPs/NACs - General 207.71 207.71 135.56
Assistance to TPs/NACs 52.97 52.77 26.25
15th Finance Commission Grants to TPs/ 127.31 37.82 0.00
NACs
Mahatma Gandhi Nagara Vikas Yojane 200.00 174.36 209.12
Director of Town Planning 26.10 26.17 15.94
State Urban Transport Fund (SUTF) 2.76 2.07 1.54
State Directorate of Urban Land 7.37 7.32 5.95
Transport
Transfer of Urban Transport Cess to SUT 63.11 0.00 0.00
Fund
Transfer of Cess on Property Tax of ULBs 70.00 0.00 0.00
to SUT Fund
Bangalore Sub Urban Rail System 500.00 0.00 0.00
Augmentation of City Bus Services, 52.00 0.00 0.00
Associated Infrastructure and Green
Mobility
State Urban Transport Fund 70.00 52.50 35.80
CSS - Atal Mission for Rejuvenation and 100.00 814.37 113.96
Urban Transformation
CSS - Mukhya Mantri NairmalyaYojane 250.00 132.67 69.87
(Swaccha Bharat)
CSS - Smart City Mission 1000.00 519.00 747.56
Total 16184.64 11231.56 12099.44

An amount of Rs.16184.64 crores (including supplementary budget) has been provided

for Urban Development Sector, Rs.11,231.56 crore was released and total expenditure
of Rs.12,099.44 crore has been made upto the end of January 2023, out of which the
productive expenditure is Rs.10,150.87 crores.

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HOUSING SECTOR

Allocation Total
Scheme Name Release
(BE+SE) Expenditure

Vajpayee Urban Housing Scheme 300.00 100.00 86.99

Releases under Karnataka Real Estate 8.58 11.06 10.61
(Regulation and Development)
Act, 2016
Infrastructure facilities for Housing 150.00 112.50 20.02
Schemes/Projects
Pradhan Mantri Awas Yojana-Urban 464.41 718.85 229.42
Payment of Government Guarantee 11.53 0.00 11.53
Commission- Rajiv Gandhi Rural
Housing Corporation
Ashraya-BasavaVasathi 825.00 250.00 689.43
Repayment Ashraya Loan & Payment 96.25 71.68 75.81
of Interest
Dr. B.R. Ambedkar Nivas Scheme 755.00 250.00 494.58
Rajiv Gandhi Rural Housing 8.64 5.87 6.01
Corporation
D.DevrajUrs Housing Scheme 175.00 175.00 86.60
Establishment Charges for KSDB 30.50 24.15 13.65
Improvement of Slums 100.00 75.00 61.07
Repayment of Ashraya Loan 263.07 197.30 197.30
(Principal) - RGRHC
CSS-State Contribution under 250.00 250.00 245.00
convergence of Dr BR Ambedkar
Housing Scheme with PMAY(U)

CSS-State Contribution under 100.00 100.00 100.00

convergence of Vajpayee Housing
Scheme with PMAY(U)
CSS - Pradhan Mantri Awas Yojane 100.00 0.00 46.93
Grameena
Total 3637.98 2341.41 2374.97

An amount of Rs.3637.98 crore (including supplementary budget) has been provided

for Housing Sector, Rs.2341.41 crore was released and total expenditure of Rs.2374.97
crore has been utpo the end of January 2023, out of which the productive expenditure is
Rs.2344.68 crores.

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Karnataka Economic Survey 2022-23

 6
AGRICULTURE CHA PT E R

AND
FOOD MANAGEMENT

6.1. AGRICULTURE

The Department of Agriculture implements various schemes and programmes of the

Central and State Government for overall welfare of the farming community and ensures
timely supply of essential inputs i.e. seeds, fertilizers, plant protection chemicals, farm
equipments, micro irrigation units along with effective transfer of technology through
demonstrations to achieve maximum output from the available natural resources viz.
soil, water etc. This in turn leads to improvement in the economic status of the farming
community and food grain needs of the people. Though the contribution of agricultural
sector in the Gross State Domestic Product is less, agriculture continues to be the largest
employment generating activity.

SDG-2 “ZeroHunger”

The landscape of the Karnataka development scenario is largely being emphasized on

the SDG vision goals of 2030 and the ground realities that seems to be of priority focus
with the agenda of bridging the glaring gaps and focus on the attainable parameters
on the Growth Index in which the NITI Aayog has laid out the ratings to improve the
state with the eye of the outcome driven objectives for the SDG goal 2 “ZeroHunger”.
And also to adequately adapt the emerging consequences of the Climate changes on
the Cropping pattern and converge on a holistic model of the integrated farming and
ecosystem inter dependency. More than 70% of the population dependent on agriculture
in Karnataka for livelihood can be converted to increase their per capita income which
will result in the increase of the 15.1% GSDP contribution (2020-21) with High Index over
the next few years, to reach at least 30% from the current $230 billion to $1 trillion in the
next five years, in order to contribute to the national GDP target of $5 trillion by 2025. The
salient features, the challenges and the way forward in the chapter may be examined
with a strategic focus on the conventional outlook to build around innovations and Agri
business corridors that pushes forward the agenda of SMART Agriculture with technology
enabled approach for the farming to attain higher yield and drastically reduce wastage
all along the pathway towards the supply chain and market place.

LAND HOLDINGS

As per Agriculture Census 2015-16, there are 86.81 lakh farm holdings operating an area
of 118.05 lakh ha. The average size of holding is 1.36 ha. Marginal and small holdings
constitute 80% of total holdings and operate 44% of the total operated area, while semi-
medium, medium and large holdings account for 20% of the total holdings and their
operational land holding is 56% out of the total operational area. Districtwise percentage
of marginal and small farmers is given in Map - 6.1.

LAND UTILIZATION

The net area cultivated during 2020-21 is 114.53 lakh ha. which constitutes 60.12% of the
total geographical area of 190.50 lakh ha. (Map 6.2) 3.93 lakh ha. of area to the geographical
area is cultivable waste. 7.43 lakh ha. of area is barren and uncultivable land, 8.72 lakh
ha. is permanent pasture. Districtwise land utilization during 2020-21 is furnished in
Appendix 6.1.
 Agriculture and Food Management
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The government is implementing a multi-faceted strategy for doubling farmers’ income

focusing on seven growth factors: improved crop productivity, increased livestock
productivity, cost-effective production processes, increased cropping intensity, crop
diversification favouring high-value crops, access to better prices and shifting to the non-
farm occupation.

The various development schemes being implemented to increase agriculture production

in 2022-23 and progress achieved up to January 2023 are as detailed below:

(Rs in Crores)

Allocation
Scheme Name Release Total Expenditure
(BE+SE)
UAS Bangalore- Research and Education 262.54 223.96 186.69
UAS Dharwad Research and Education 200.88 178.30 153.91
Raichur Agriculture University Research 107.47 108.91 81.54
and Education Programmes
Shimoga Agriculture University 60.71 54.83 45.44
Shimoga Agricultural University-RIDF 24.63 24.63 24.63
Raichur Agricultural University-RIDF 17.02 17.02 17.02
Bangalore Agriculture University-RIDF 30.67 30.67 30.67
RIDF Assisted Watershed Development 10.27 9.07 7.28
Projects
Dharwad Agriculture University-RIDF 27.61 27.61 27.61
Scholarships to Farmers Children 1010.00 630.00 222.92
Commissionerate of Agriculture 160.01 127.46 103.52
Secondary Agriculture Directorate 5.00 0.00 0.00
Unspent SCSP-TSP Amount as per the 6.42 3.00 3.54
SCSP-TSPAct 2013
Farmers Incentive and Support Schemes 13.59 5.86 5.82
Agricultural inputs and Quality Control 875.42 340.65 239.33
Organic Farming and Millets Programmes 20.00 9.98 8.14
Agricultural Extension and Training 2.70 1.39 1.14
New Crop Insurance Scheme 876.72 633.42 660.93
Pradhan Mantri Kisan Samman Yojane 1000.00 0.00 0.00
Agricultural Infrastructure 165.47 41.83 41.17
Executive Establishment of Agriculture 82.72 79.68 78.77
Dept ZP Sector
Agricultural Office Buildings 8.26 6.76 2.87
Agriculture Training Schools 2.82 3.01 2.27
Executive Establishment of Agriculture 119.63 117.06 57.25
Dept TP Sector

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Allocation
Scheme Name Release Total Expenditure
(BE+SE)
Supporting Farmer Producer 10.00 5.05 4.89
Organisations (FPOs)
Soil & Water Conservation - Watershed 19.17 17.41 15.62
Development Department - Directorate of
Watershed Development
World Bank Assisted REWARD 100.00 50.00 33.75
(Rejuvinating Watersheds for Agricultural
Resilience through Innovative
Development) Project-EAP
Formation and Promotion of Amrith 70.46 13.84 13.30
Farmers Producer Organisations
Watershed Development to prevent 40.00 31.96 16.53
Drought
Watershed Development 17.74 16.88 17.16
District Watershed Development Office - 22.02 20.36 20.49
Divisional & Other Establishment
Soil Conservation on Watershed Basis 1.10 0.80 0.04
CSS - Sub-Mission on Agricultural 280.00 83.53 83.53
Mechanisation
CSS - Sub-Mission on Agriculture 35.86 14.97 14.97
Extension and Technology
CSS - PMKSY-Watershed Development for 65.08 96.15 53.07
Drought Control
CSS - PMKSY(NMSA - Chief Minister’s 311.38 2.85 0.02
Sookshma Neeravari Yojane)
CSS - PMKSY-Watershed Development 127.62 144.23 95.75
Component
CSS - PM Formalisation of Micro food 29.10 8.67 8.67
processing Enterprises (PMFME)
CSS - Sub- Mission on Seed and Planting 1.00 0.00 0.00
Material
CSS - Project on Management of Soil 0.08 0.00 0.00
Health
CSS - Rainfed Area Development 13.33 10.00 10.00
CSS - National Food Security Mission- 166.67 56.15 43.84
Other Crops and Oil Seeds
CSS - Rashtriya Krishi Vikas Yojane (RKVY) 333.33 1.15 1.15

Total 6734.50 3249.10 2435.24

Source: Avalokana

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An amount of Rs. 6734.50 Cr. is allocated in the budget for 2022-23 of which Rs.3249.10
Cr. is released upto 20th, January 2023. The expenditure incurred is Rs.2435.24 Cr. Out of
the total allocation, the productive allocation is Rs. 5701.00 Cr. of which the expenditure
incurred is Rs. 1686.13 Crores. (upto 20th, January 2023)

Achievements

Agricultural Production

Table 6.1 : Area and Production of Major Crops in the State

(Area in lakh hectares, Production in lakh tonnes)

2022-23 2021-22
Crop / Group
Area Prodn. Area Prodn.
Cereals 48.92 114.81 50.80 123.95
Pulses 32.64 20.08 32.53 19.73
Total food grains 81.56 134.89 83.33 143.68
Oilseeds 12.70 12.18 12.22 11.21
Cotton # 9.15 21.48 6.87 19.53
Sugarcane (H) * 7.18 562.91 6.50 611.52
Tobacco 0.70 0.49 0.82 0.64

# Lakh bales of 170 Kg. lint, * Sugarcane production for the harvested area during the year.
Source: 2022-23 Second Advance Estimates and 2021-22 Final Estimates of DE&S.

The total area cultivated under food crops during 2021-22 was 83.33 lakh ha. and the
food production was 143.68 lakh tonnes. During 2022-23 it is estimated that (as per the
second advance estimates) 81.56 lakh ha. of area under food crops will be cultivated with
the production of 134.89 lakh tonnes. It is estimated to produce 12.18 lakh tonnes of Oil
seeds during 2022-23 as against the production of 11.21 lakh tonnes in 2021-22. Similarly,
it is also estimated to produce 21.48 lakh bales of Cotton during 2022-23 as against the
production of 19.53 lakh bales in 2021-22.

Cropping Pattern

The State is divided into 10 Agro-climatic zones on the bases of distribution and
percentage of rainfall, soil quality, height from the sea and based on major crops. On
account of this varied agro-climatic features, almost all cereals, pulses, oilseeds and
commercial crops are cultivated in different parts of the State. Farmers in Karnataka are
very innovative and take lead in diversification as per the market trends. The average
area (2017-18 to 2021-22) of agriculture crops grown in three seasons’ viz. Kharif (77.17
lakh ha.), Rabi (24.72 lakh ha.) & summer (6.14 lakh ha.) is 108.03 lakh hectares. Cereals,
Pulses, Oilseeds, Cotton, Sugarcane and Tobacco account for 46%, 31%, 12%, 7%, 5% and
1% respectively of the total agricultural cropped area. Maize, Wheat, Tur, Green gram and
Groundnut are witnessing a higher trend in recent years, whereas crops like Jowar, Bajra,
Bengal gram, Avare and Tobacco are witnessing a declining trend.

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Distribution of Fertilizers

Based on the projected requirement of different grades of fertilizers for Kharif 2022 and
Rabi/Summer 2022-23 (upto November 2022) 14.9 lakh tonnes of fertilizers was distributed
to farmers of which 8.98 lakh tonnes is Nitrogen (N), 4.50 lakh tonnes is Phosphorus(P)
and 1.41 lakh tonnes is Potash(K).

To overcome the scarcity of fertilizers at a critical period under the scheme buffer stock
of fertilizers as on 25.11.2022, DAP – 10,788 tonnes, MOP- 2,431 tonnes, Complexes –15,489
tonnes, Urea – 10,273 tonnes, totally 38,981 tonnes of fertilizer has been stocked. This
arrangement in turn, helped to manage the supply of fertilizers in demand situation
smoothly in the state.

Distribution of seeds at subsidized rates to Farmers

During Kharif 2022 about 4.05 lakh quintals seeds of Paddy, Ragi, Jowar, Maize, Bajra,
Navane, Cowpea, Greengram, Blackgram, Red gram, Groundnut, Wheat, Sunflower
and Soybean have been distributed and Rs.96.32 crore subsidy amount is utilized for
this purpose and 11.01 lakh farmers have been benefited. During 2022-23 Rabi/Summer
3.70 lakh quintals of seeds have been distributed and Rs.101.65 crore subsidy amount is
utilized for this purpose and 5.15 lakh farmers have been benefited.

Plant Protection

In order to protect the crops from seed and soil-borne diseases and also to get higher
yields, seed treatment campaigns are conducted. Training programmes are also
conducted with the available funds under this scheme to create awareness among
farmers regarding the safe and judicious use of pesticides.

Early monitoring, identification and guiding farmers regarding soil conditions, nutritional
requirements, pest/disease identification and management as well as to reduce the
indiscriminate use of chemical pesticides in order to promote good agricultural practices
Mobile Plant Health Clinics are established at all districts in the State.

Farm Mechanization

Mechanization of Farm Operations helps to reduce the drudgery of farm operations,

saves time, and improves efficiency and farm productivity. During 2022-23 an amount of
Rs. 4064.41 lakhs of expenditure is incurred up to December 2022.

Krishi Yantra Dhare-Farm Machinery Custom Hire Service Centers

To facilitate farmers to avail the farm machinery on custom hiring basis at the hobli
level, Custom Hire Service Centres were established through Charitable Trusts/ Non-
Government Organizations/Farm Equipment Manufacturers in a phased manner on a
PPP model. During 2022-23, an amount of Rs.6000 lakhs is provided of which Rs 93.58
Lakhs has been released. Till date 39.89 lakh farmers have been benefited.

Agro-Processing

Agro-Processing scheme is being implemented under which various agro-processing

equipments are made available to farmers, Self Help Groups and Farm Women at

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subsidized rates. This encourages the value addition of the farm produce and increases
the income of the beneficiary. Under SCP and TSP, agro-processing units are provided to
SC/ST farmer groups, women SHG’s and individual farmers with an assistance of 90% or
a maximum of Rs 1.00 lakh. 406 persons are benefited under Agro-processing scheme
during 2022-23(Upto December 2022).

Soil Health Mission

In Karnataka, at present, 30 Soil testing laboratories (29 static & 1 mobile soil testing lab)
of the Agriculture Department are catering to the needs of State farmers in respect of
soil testing. In addition to this, 291 village-level soil testing labs have been established by
providing subsidy to selected beneficiaries under NMSA Soil Health Management. NIC
-Soil Health Card (SHC) portal is used for generation of Soil health cards. 1,30,244 soil
samples have been collected, 59,149 soil samples have been analyzed as on 30.11.2022.

Micro Irrigation

During 2022-23, the Micro Irrigation programme was implemented under Prime
Minister’s Krishi Sinchayee Yojana (PMKSY) and Rural Infrastructure Development Fund
(RIDF). During 2022-23 an amount of Rs. 21560 lakhs expenditure has been incurred upto
November 2022 as against the release of Rs.28500 lakhs.

Crop Insurance Scheme-Pradhana Mantri Fasal Bima Yojana

This scheme provides insurance coverage and financial support to the farmers in the
event of failure of any of the notified crop due to adverse climatic conditions, helps
stabilize farm income, particularly in disaster years, to protect farmers in the event of crop
failure due to natural calamities. During 2021-22 an amount of Rs.833.16 crore of claims
has been settled to 8,07,281 farmers. During Kharif 2022-23, an amount of Rs.256.70 crore
of claim amount has been settled to 5,02,080 farmers.

Under Restructured Weather Based Crop Insurance Scheme for Horticulture crops an
amount of Rs.651.06 crore of claim amount has been settled to 3,34,641 farmers during
2021-22.

Organic farming

At present, for the promotion of Organic Farming - Organic Farming Adoption &
Certification, Raitha Siri Programme, Natural Farming and Savayava Siri are being
implemented in the State. Under Organic Farming Adoption & Certification programme,
26611 ha. areas of 16514 farmers have been additionally certified and steps have been taken
to get more farmers certified to achieve the set target. In order to encourage Processing,
Grading, Value addition, Packing and Branding of Minor millets, an assistance of 50% or
maximum of Rs.10.00 lakhs subsidy are being provided under Raitha Siri Yojane.

PM KISAN - Karnataka scheme

The State Government has been providing additional financial assistance of Rs. 4,000/
-in two installments under the PM Kisan-Karnataka Scheme to all eligible farmers of the
Central Government’s PM Kisan scheme from 14.08.2019. So far the State Government
has transferred the financial assistance of Rs. 4821.37 crore for 50,35,650 farmers from the

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beginning of the scheme. During 2022-23 State has transferred the financial assistance
of Rs. 956.71 crore to 47,83,562 farmers.

Mukhya Mantri Raitha Vidya Nidhi Programme

Hon’ble Chief Minister has announced ‘Mukhya Mantri Raitha Vidya nidhi’ programme to
encourage the children of farmers to pursue higher education. Under this programme,
girl children from farmer families studying in class 8, 9 and 10 and children from farming
families who have completed class 10 and are studying in higher courses in any registered
educational institution / university in any part of state are eligible for this scholarship. The
scholarship will be transferred annually to bank accounts through Direct Benefit Transfer
(DBT) system.

Integrated Farming System

The main aim of Integrated Farming System (IFS) replication and popularization under
RKVY during 2022-23 is to increase the income of the farmer through “integrated farming”
Promoting integrated farming system covering crops, livestock & fishery, plantation
and pasture based composite farming for enhancing livelihood opportunities, ensuring
food & income security and minimizing risks from crop failure through supplementary/
residual production systems.

New Innovation

oo In the current year, thrust has been given for Secondary Agriculture in order to enable
value addition to the primary agricultural produce and create more marketing
opportunities with the help of Farmer Producer Organizations in turn to achieve the
doubling of farmers income, “Raitha Shakti” – a programme to provide diesel subsidy
at Rs.250/- per acre subject to maximum for 5 acres to encourage the use of farm
machinery and to reduce fuel expenditure burden, Natural Farming and separate
Krishi Prashasthi and Krishi Pandita Prashasthi awards in order to encourage woman
farmers and to attract more women towards farming are the new schemes being
implemented.
oo Sequestering carbon in soil, however, is a relatively natural way of removing carbon
dioxide from the atmosphere with fewer impacts on land and water, less need for
energy, and lower costs. Better land management and agricultural practices could
enhance the ability of soils to store carbon and help to combat global warming.
oo High-tech agriculture facilitates increased crop production and animal production
per unit area and food security.
oo Digital technologies, such as artificial intelligence (AI) and machine learning (ML),
remote sensing, big data, block chain and IoT, are transforming agricultural value
chains and modernizing operations. The future adoption of digital agriculture in
India is anticipated to nurture under the Public-Private Partnership (PPP) mode. The
Digital Agriculture Mission 2021–2025 aims to support and accelerate projects based
on new technologies, like AI, block chain, remote sensing and GIS technology and
use of drones and robots.
oo Precision agriculture (PA) is a farming management concept based on observing,
measuring and responding to inter and intra-field variability in crops. It will enhance

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agricultural productivity and prevent soil degradation in cultivable land resulting in

sustained agricultural development. It will reduce excessive chemical usage in crop
production. Water resources will be utilized efficiently under the precision farming.
Productivity Analysis

Based on the crop cutting experiments yield data of 2018-19, the analytics done by the
Centre for Open Data Research (CODR) reveals that 390 GPs require improvement across
30 districts of Karnataka especially for the critical agro-climatic zones-North Eastern dry
zone, Northern dry zone and Southern Transition zone and for the specific crops i.e.,Maize,
Ragi, Jowar, Paddy and Wheat.

Further the productivity of major agriculture crops based on the final estimates of 2020-
21 is analysed with the comparison of state average yield (Appendix 6.2). The productivity
of the major crops is less than the State Average as detailed below:

oo Paddy: The State Average yield of the Paddy crop is 4766 Kgs/ha, but the yield of
major Paddy growing districts namely, Uttara Kannada, Haveri, Hassan, Kalburgi,
Kodagu, Belagavi, Shivamogga, Udupi, Yadgir, Mysuru and Mandya is less than the
state average.
oo Jowar: The State Average yield of the Jowar crop is 1206 Kgs/ha., but the yield of
major Jowar growing districts namely, Vijayapura ,Gadag, Dharwad, Haveri, Koppal,
Bidar & Yadgir is less than the state average.
oo Ragi: The State Average yield of the Ragi crop is 1745 Kgs/ha., but the yield of major
Ragi growing districts namely, Hassan, Chikmagalur, Belagavi, Davangere, Ballari,
Chitradurga, Tumkur, Mandya and Mysuru is less than the state average.
oo Maize: The State Average yield of the Maize crop is 3689 Kgs/ha but the yield of major
Maize growing districts namely, Gadag, Koppal, Dharwad, Haveri & Vijayapura is less
than the state average.
oo Wheat: The State Average yield of the Wheat crop is 1292 Kgs/ha but the yield of
major Wheat growing districts namely, Koppal, Haveri, Dharwad, Raichur, Gadag,
Vijayapura, Yadgir, Ballari & Bidar is less than the state average.
oo Tur: The State Average yield of the Tur crop is 759 Kgs/ha, but the yield of major Tur
growing districts namely, Tumkuru, Belagavi, Vijayapura, Koppal, Mysuru, Chitradurga,
Kolar, Raichur, Chikkaballapur, Ramanagar & Ballari is less than the state average.
oo Bengal Gram: The State Average yield of the Bengal Gram crop is 625 Kgs/ha, but
the yield of major Bengal Gram growing districts namely, Gadag, Koppal, Davangere,
Dharwad, Haveri, Bidar & Vijayapura is less than the state average.
oo Groundnut: The State Average yield of the Groundnut crop is 1000 Kgs/ha, but the
yield of major Groundnut growing districts namely, Gadag, Vijayapura, Tumkuru,
Chitradurga, Raichur, Koppal & Chikkaballapur is less than the state average.
oo Sunflower: The State Average yield of the Sunflower crop is 895 Kgs/ha, but the yield
of major Sunflower growing districts namely, Gadag, Dharwad, Kalburgi & Koppal is
less than the state average.

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Special emphasis has to be given to the above districts to increase the productivity of the
major agricultural crops.

Utilization of Cultivable Waste

Geographical area of the State is 190.50 lakh ha., of which 7.8 lakh ha. is fallow and 4
lakh ha. is Cultivable waste (2020-21) which can be productively reclaimed/cultivated to
improve our GDP. 7 districts constitute more than 50% of the Cultivable Waste, which
can be used for cultivation by incentivizing Agro-forestry & horticulture crops at the rate
of Rs.40,000 per hectare.

Cultivable Waste
Sl. No. Districts % to Geographical Area
(Area in hectares)

1. Udupi 30258 8.5

2. Mandya 41955 8.4
3. Tumkur 62642 5.9
4. Dakshina Kannada 17860 3.7
5. Bidar 19381 3.6
6. Mysore 21407 3.2
7. Raichur 20084 2.4
Total 213587

The district wise cultivable waste and its percentage to total geographical area is given
in Appendix 6.3 and in Map - 6.3.

Area to be brought under Integrated farming

As per 2020-21 cropping pattern, the net area cultivated in the state is 114 lakh ha., of
which only 35 lakhs ha. (31%) of area is cultivated more than once. The remaining 79 lakh
ha. of area has to be brought under integrated farming systems or multi cropping. The
district wise information is given in Appendix 6.4.

Area to be brought under Irrigation

The net area cultivated under different crops during 2020-21 is 114.53 lakh ha. of which
net area Irrigated is 49.31 lakh Ha. Hence, the remaining 65.22 lakh ha. has to be brought
under Irrigation in phases based on the dominant crop grown which is prone to higher
yield upon irrigation. District wise information is furnished in Appendix 6.5.

Alternate crops to be cultivated in over exploited Ground water talukas

There are 47 over exploited talukas of groundwater in the state as on March 2022. They are
spread among 15 districts of which Bengaluru Rural, Bengaluru Urban, Chikkaballapura,
Kolar are growing high intensity crops. Agriculture/Horticulture Departments needs to
promote alternate remunerative less water consuming crops. Districtwise and Talukwise
high intensity crops grown and proposed alternate crops for 6 districts is given below.

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Over exploited
Districts Crop grown Area in hectares Alternate crops
Talukas
Bagalkote Bagalkote Sugarcane 7119 Sunflower
Bengaluru Rural Devanahalli Grapes 1457 Sunflower
Doddaballapura Arecanut 1646 Sunflower
Hoskote Mulberry 1181 Sunflower
Chikkaballapura Bagepalli Tomato 1535 Sunflower
Chikkaballapura Grapes 1612 Sunflower
Chintamani Tomato 2740 Sunflower
Shidlaghatta Mulberry 4915 Sunflower
Chikkamagaluru Ajjampura Arecanut 6508 Mango
Tumkur Tumkur Arecanut 11354 Mango
Sira Arecanut 8213 Mango
Arecanut 32475 Mango
Davangere Channagiri
Paddy 12005 Mango

Ground water status as on March 2022 is shown in Map 6.4.

Climate Adaptive Agriculture and Sustainability

The National Mission for Sustainable Agriculture, in tandem with other missions under
the National Action Plan on Climate Change, addresses the climate change risks
and aims to increase agriculture productivity especially in rainfed areas focusing on
integrated farming, soil health management and synergising resource conservation.
Under National Innovations in Climate Resilient Agriculture (NICRA), climate-resilient
technology demonstrations are implemented in climatically vulnerable districts which
aim to enhance farmers’ adaptive capacity and skills for resilient climate agriculture.

6.2 WATERSHED DEPARTMENT

Karnataka has a total geographical area of 190.50 lakh ha., out of which 129.70 lakh ha.
area is available for watershed interventions. So far, (Upto March 2022) 72.00 lakh ha.
rainfed area has been developed with watershed interventions. The remaining area of
57.70 lakh ha. will be treated with scientific watershed interventions in phased manner.

Pradhana Mantri Krishi Sinchayee Yojane

The main objective of the programme is creation of small water harvesting structures/
renovation, distribution of pre-cast pipe system, renovation of borewell/dugwell, water
lifting devices and linking them with micro-irrigation. Under this programme 679 different
water harvesting structures have been constructed and linked with micro-irrigation and
an area of 1018 ha. is brought under protective irrigation.

World Bank Funded REWARD Programme

World Bank has selected Karnataka to lead other states as a Light House partner for
REWARD (Rejuvenating Watersheds for Agricultural Resilience through Innovative

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Development), which is a new multi-state watershed development programme funded

by the World Bank. State Government allocated Rs.100 Cr. budget for 2022-23 and till
the end of November 2022 Rs.50 Cr. was released and Rs.22.09 Cr. expenditure has been
incurred.

Watershed Development to Prevent Drought (WDDP)

The main objective of this programme is to treat the balance untreated watershed
area in the State-100 drought hit and low ground water level talukas and in 1005 micro
watershed for a period of five years from 2019 to 2024 to implement drought proofing
watershed activities.

National Mission for Sustainable Agriculture Rain-fed Area Development Program

(NMSA-RAD)

RAD aims at promoting Integrated Farming System (IFS) with emphasis on multi-
cropping, rotational cropping, inter-cropping, mixed-cropping practices with allied
activities like horticulture, livestock, fishery, agro-forestry, apiculture, conservation/
promotion of NTFPs etc.

Farmer Producer Organizations (FPO)

Formation and promotion of FPOs: Under Centrally Sponsored Scheme, 100 Farmer
Producer Organizations are formed and promoted. During 2022-23 an amount of Rs.10.97
Cr. was available and an expenditure of Rs.8.63 Cr. has been incurred. The formation and
promotion of Farmers Producers Organization (FPOs), are expected to address the many
challenges faced by individual small and marginal farmers especially in marketing of
the agriculture produce. These organizations are created depending upon the needs
of the producers considering the demand potential to adopt a value chain approach to
enhance producer’s economic and social benefits.

Amrith Formation & Promotion of FPOs: Target of 750 Amrith FPOs was announced
for formation and promotion of FPOs, with 250 FPOs per year to be created for a period
of 3 years. The Formation and promotion of Amrith FPOs was started from the year
2021-22 and so far 344 Amrith Famers Producer Organizations have been created by
the concerned implementing departments in Agriculture, Horticulture, Sericulture,
Animal Husbandry and Textile & handloom sectors. During 2022-23 under Amrith FPOs
formation & promotion programme an amount of Rs.70.46 Crore is allocated of which
Rs.17.615 Crore is released. The expenditure incurred is Rs.13.51 Crore up to November 2022.

NABARD–RIDF Tranche -27

This programme is implemented from 2021-22 to 2023-24 for 3 years with total project
amount Rs.25.00 Crore. The main objective of the scheme is soil and water conservation
and is implemented in 10 districts of 10 sub-watershed with upper reach treatment with
Rubble check & Boulder check and drainage treatment with different water harvesting
structure. During 2021-22, Rs. 4.80 Crore was released and an expenditure of Rs. 4.78
Crore has been incurred. During 2022-23, Rs. 10.27 Crore was allocated of which Rs.10.27
Crore is released up to the end of November 2022.

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6.3 AGRICULTURE MARKETING

Agricultural Marketing aims to develop and regulate participative, transparent and

scientific agricultural marketing system with adequate infrastructure and user-friendly
e-initiatives in the state to promote and encourage participatory and equitable socio-
economic development of people and especially farmers through a vibrant agricultural
marketing system.

Rashtriya e-Market Services Limited (ReMSL)

On line trading system is being implemented to sell the agricultural produce of the
farmers in the markets through the electronic trading system. Actions are being taken
to ensure transparency, simplify the marketing procedures, ensure a competitive price
for farmers’ produce by introducing technology in all market activities including auction
system, price discovery and payment of sale proceeds to farmers on line. The arrangement
is being made to link different markets in the state by the introduction of technology
and facilitating the traders of different markets in the state to participate in buying of
commodities online from any of the markets of the state where the farmers have offered
for sale.

So far, 156 markets are brought under Unified Market Platform. The Unified Market
Platform has transacted 9.12 Cr. MTs of agricultural commodities worth Rs. 2,63,715.82 Cr.

Minimum Floor Price

To ensure sustainable development and stability in the agricultural sector and to protect
the interest of the farmers against distress sale of agricultural commodities, whenever the
rates of such commodities go down, the Floor Price Scheme for Agricultural/Horticultural
commodities in Karnataka is implemented. 2,57,308.80 quintals of Greengram has been
procured at an estimated cost of Rs.199.54 Cr., benefiting 22,181 farmers during 2022-23.

For providing infrastructure facilites to Agriculture Marketing a total of 890 works with
an estimated cost of Rs.319.61 Cr. have been completed under RIDF-24. Under RIDF-28, a
total of 54 works with an estimated cost of Rs.396.00 Cr. have been approved.

Integrated Agribusiness Developmental Initiatives in Karnataka

oo Karnataka with its ten different agro-climatic zones and other bounteous natural
advantages offers immense opportunities for high growth in agriculture and allied
sectors.
oo It is imperative that Karnataka takes advantage of the modern practices, technologies
and develop strategies to leverage the growing demand in both domestic and
international markets.
oo Thrust areas requiring priority attention would include improving production and
productivity, reducing production cost, wastage reduction, increasing value addition.
oo Integrated nutrient management, organic farming, integrated pest management,
protected cultivation / greenhouse technology,
oo Post harvest management, adoption of state of the art food processing technologies,
focusing on high unit value realization in export markets, etc.

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oo As an initial step towards this ambitious goal, “Agri Business Corridor for Karnataka”
initiative is covering entire stretch of the state starting from Chamarajanagara in the
South to Belgavi and Kolhapur in the North.
oo The important measureable expected outcomes from this programme are: Doubling
Farmer’s Income, Grading and food safety practices, Reduction in post-harvest losses
sustainable farming practices & traceability.
Current Status of ODOP in Karnataka

In the 2021-22 Karnataka Budget, the State government plans to give a big push to the
“one district, one product” policy for exploiting the potential of unorganized micro-food
processing by offering credit, avenues for the marketing of products, and technical
know-how. Under this scheme, the State has identified and approved 20 districts for
horticultural products, six for agricultural products, two for marine products, one for
poultry, and one for bakery products. The products in each district were chosen on the
basis of their availability, status of current processing, and scope of marketing.

Under the policy, one product in each district is identified and entrepreneurs involved
with these products are eligible to avail credit-linked capital subsidy at 35% of the project
cost, with a maximum ceiling of ₹10 lakh per unit. The maximum credit will be ₹30 lakh
per project.

Table 6.2 : List of One District One Product

Sl. Sl.
District Product District Product
No. No.
1. Bagalkote Onion 16. Haveri Mango
2. Belagavi Jaggery 17. Kalaburgi Red Gram
3. Bellary Fig 18. Kodagu Coffee
4. Bengaluru Rural Poultry Products 19. Kolar Tomato
5. Bengaluru Urban Bakery Products 20. Koppal Guava
6. Bidar Ginger 21. Mandya Jaggery
7. Chamarajanagar Turmeric 22. Mysore Banana
8. Chikkaballapura Tomato 23. Raichur Chillies
9. Chikkamagalur Spices 24. Ramanagara Coconut Products
10. Chitradurga Groundnut Product 25. Shivamogga Pineapple
11. Dakshina Kannada Marine Products 26. Tumkuru Coconut Products
12. Davanagere Millets 27. Udupi Marine Products
13. Dharwad Mango 28. Uttara Spices
Kannada
14. Gadag Byadagi Chillies 29. Vijayapura Lime/ Lemon
15. Hassan Coconut Products 30. Yadagiri Groundnut Product

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The Farmer Registration & Unified Beneficiary Information System (FRUITS)

The Farmer Registration & Unified Beneficiary Information system or FRUITS software,
facilitates single registration using an Aadhar card and Karnataka’s Bhoomi digitized
land record system for authenticating ownership. Through FRUITS, farmers can access
benefits of hosts of schemes such as Direct Benefit Transfer under PM Kisan, Payment for
Minimum Support Prices (MSPs) for crops, special financial assistance, caste certificate
authentication and ration cards. It allows various departments to access information about
the farmers under a single Platform, which ensures better targeting and effectiveness in
the implementation of the schemes. It is also integrated with Karnataka state Natural
Disaster Monitoring Centre, from which daily weather and rainfall data are provided to
farmers based on their locations. More than 7.8 million farmers have been registered
with FRUITS software, out of this more than 6.2 million farmers have registered their land
records. This also helps in assessing robust assessment of the production of various crops
including Paddy, Ragi, Jowar, Tur, Bengalgram, Ground nut and Copra and helps in crop
survey and for settlements of claims under the crop insurance scheme.

Challenges and Way forward

oo Based on the crop cutting experiments yield data of 2018-19, the analytics reveals
that 390 GPs require improvement across 30 districts of Karnataka especially for the
critical agro-climatic zones-North Eastern dry zone, Northern dry zone and Southern
Transition zone and for the specific crops i.e.,Maize, Ragi, Jowar, Paddy and Wheat.
oo Utilization of Cultivable Waste: Geographical area of the State is 190.50 lakh ha. of
which 7.8 lakh ha. is fallow and 4 lakh ha. is Cultivable waste which can be productively
reclaimed/cultivated to improve our GDP. Seven districts namely Udupi, Mandya,
Tumakuru, Dakshina Kannada, Bidar, Mysore and Raichur constitute more than
50% of the Cultivable Waste, which can be used for cultivation by incentivizing Agro
forestry and horticulture crops at the rate of Rs.40,000 per hectare.
oo Area to be brought under Integrated farming: As per 2020-21 cropping pattern,
the net area cultivated in the state is 114 lakh ha, of which only 35 lakhs ha. (31%) of
area cultivated more than once. The remaining 79 lakh ha. of area has to be brought
under integrated farming systems or multi cropping.
oo Area to be brought under Irrigation: The net area cultivated under different crops
during 2020-21 is 114.53 lakh ha. of which net area irrigated is 49.31 lakh ha. Hence,
the remaining 65.22 lakh ha. is to be brought under irrigation in phases based on the
dominant crop grown which is prone to higher yield upon irrigation.
oo Alternate crops to be cultivated in over exploited Ground water talukas: There are
47 over exploited talukas of ground water in the state as on March 2022. They are spread
among 15 districts of which Bengaluru Rural, Bengaluru Urban, Chikkaballapura,
Kolar are growing high intensity crops. Agriculture/Horticulture Departments needs
to promote alternate remunerative less water consuming crops.
oo Special emphasis has to be given to those districts where the productivity of major
crops namely Paddy, Jowar, Ragi, Maize, Wheat, Tur, Bengal Gram, Groundnut and
Sunflower is less than the state average.
oo Initiation of a Crop Demonstration/ IFS model Project under the National Food
Security Mission (NFSM) scheme (covering a plot of 1 ha) per GP.

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oo Promote and Incentivize FPO’s to leverage Agri-tech startup solutions, create brand
Karnataka for fruits, vegetables and other products in global markets to improve
product demand and provide opportunities for exports.
oo Drought proofing-watershed development, efficient resource use (micro-irrigation),
promoting climate-resilient crops.
oo Seed to sales single window centers, promote sustainable agri-practices, Incentivize
Food processors, Commodity specific digital platforms, 2-3 identified projects in
each village leveraging PPP model, Incentivize banks to tap into opportunity of rural
agriculture financing.
6.4 HORTICULTURE
Horticulture sector has emerged as an important component of the economy of our
State and has contributed more than one third share to the economy of agriculture
and allied sectors. In many dry regions of the State, Horticultural crops have evolved as
an alternative crop to agricultural crops. In 2020-21 Horticulture crop covers an area of
26.20 lakh hectares and the annual production is 241.50 lakh Metric Tons. The average
productivity of horticultural crops in the State is 9.22 Metric Tons per hectare. The annual
value of Horticultural products produced in the State is Rs.66,263 crore and constitutes
29.55% of the total income from entire agriculture sector. The share of Horticultural
produce in total GSDP of the state was 5.50%. Karnataka is awarded “Best State for
Horticulture 2022” for promoting horticultural development and production in the state
during the 13th Agriculture Leadership Awards 2022.
The State has undertaken several initiatives to boost the growth in this sector. The
major initiatives include Area expansion programme, Providing micro irrigation under
Pradhana Mantri Krishi Sinchayi Yojane, Horticulture extension and training, Disease and
pest management, Rashtriya Krishi Vikas Yojane (RKVY), Comprehensive Horticulture
Development, Assistance to Horticulture Boards and Corporations, Biotechnology,
Apiculture and Paramparagath Krishi Vikas Yojana.
Schemes being implemented during 2022-23 and financial progress achieved up to 20th
January 2023 to increase the growth in this sector are as mentioned below.
(Rs. in Crores)

Allocation Total
Sl. No. Scheme Name Release
(BE+SE) Expenditure
1. Directorate of Horticulture 121.41 114.66 88.38
2. Unspent SCSP-TSP Amount as per the 0.13 0.13 0.09
SCSP-TSP Act 2013
3. Central Sector-Integrated Farming in 12.50 2.25 2.24
Coconut for Productivity Improvement
Programme

4. Assistance to Horticulture Boards and 4.00 4.00 4.00

Corporations

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Allocation Total
Sl. No. Scheme Name Release
(BE+SE) Expenditure
5. Coconut Development Programme 1.00 0.37 0.00

6. Comprehensive Horiculture Development 76.00 35.18 21.48

7. Development and Maintenance of Farms 7.50 8.91 5.27

and Nurseries

8. Development of Departmental Laboratories 9.00 6.56 3.37

9. Scheme for Integrated Control of Pests & 5.00 4.96 4.29

Diseases of Horticultural Crops

10. Maintenance of Horticulture Department 2.00 1.00 0.77

Buildings

11. Horticulture Parks and Gardens 25.00 9.75 8.20

12. Bagalkot Horticultural University 90.90 78.00 67.26

13. Development of Madhuvana and Apiculture 4.00 3.04 2.20
14. Horticulture Infrastructure Development- 34.16 8.54 8.54
NABARD Works

15. Executive Establishment of Horticulture 156.12 157.70 167.63

Dept ZP Sector
16. Horticulture Buildings 9.14 7.54 4.11

17. Maintenance of Horticultural Farms 3.73 3.69 3.04

18. Publicity and Literature 2.74 2.59 1.68

19. Apiculture Development Programmes in ZP 3.16 3.06 3.14

sector
20. CSS – Paramparagat Krishi Vikas Yojane 5.77 5.77 5.77

21. CSS – Pradhana Mantri Krishi Sinchayi 137.20 115.44 115.44

Yojane

22. CSS – Pradhana Mantri Krishi Sinchayi 415.00 173.65 173.65

Yojane

23. CSS - National Mission on Edible Oil- Oil 8.16 2.48 2.48
Palm

24. CSS - National Horticulture Mission 150.30 85.88 69.89

Total 1283.92 835.15 762.92

Source: Avalokana

An amount of Rs. 1283.92 crores is allocated in the budget of which, Rs. 835.15 crores is
released upto 20th, January 2023. The expenditure incurred is Rs. 762.92 crores. Out of

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the total allocation, the productive allocation is Rs. 928.06 Cr. of which the expenditure
incurred is Rs. 449.28 crores (upto 20th, January 2023).

Achievements

Area under Horticultural crops for the period 2019-20 and 2020-21.

Table 6.3: Category wise Area under Horticultural Crops (in Lakh Ha.)
Spice Garden / Commercial Medicinal Aromatic
Year Fruits Vegetables Total
Crops Plantation Flowers Plants Plants
2019-20 3.98 4.41 3.08 12.10 0.34 0.01 0.01 23.93
2020-21 4.32 5.21 3.32 12.95 0.38 0.01 0.01 26.20

Source: Directorate of Horticulture

26.20 lakh hectares of area was under Horticulture crops during 2020-21 as against the
area of 23.93 lakh hectares in 2019-20, which indicates that 2.27 lakh hectare of area
was increased during 2020-21. Of the total 26.20 lakh hectares of Horticulture crops
during 2020-21, garden and plantation crops constitute 49.43%, Vegetables 20% and
Fruits 16.48%.

(i) National Mission on Edible Oil - Oil Palm

India imports around 133.52 lakh tones of edible oils costing around 80,000 crore. Therefore,
in order to achieve self-sufficiency in edible oil production, both Central and State Govt.
are encouraging oil palm cultivation. As per the reassessment by Indian Institute for Oil
Palm Research in 2020, Karnataka has the potential to grow Oil palm in an area of about
72642 ha. Since, Oil Palm is a water loving crop, its cultivation is mainly taken up in 18
districts which come under Command areas of Cauvery, Bhadra, Thungabhadra, Krishna,
Malaprabha and Ghattaprabha and in 5 districts in non-command areas through PPP
model.

In order to protect the interest of oil palm farmers, oil palm entrepreneurs and oil
palm industry as a whole, the State Government has passed the “Oil Palm Cultivation,
Production and Processing regulation Bill” during the year 2013. Currently in the State,
around 5989 farmers are cultivating oil palm in an area of 8137.27 ha.out of which 2372
ha. is yielding. The annual production of oil palm FFBs is about 19184.22 M.T, from which
3303.52 M.T of Crude Palm Oil (CPO) is being extracted.

(ii) Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)

Water is the most important input in Agriculture sector especially for Horticulture crops.
Micro Irrigation system not only increases the water use efficiency, it also helps in improving
yield, quality of produce, reduced dependency on labour and in reducing weed menace
under Per Drop More Crop component. Karnataka is one of the pioneering states in
recognizing the advantages of Micro-Irrigation (Drip Irrigation & Sprinkler Irrigation) and
has been promoting its use among the farmers. Under the scheme, subsidy is provided
for installation of drip irrigation for all Horticulture crops except Coffee, Tea and Rubber.
Under Pradhan Mantri Krishi Sinchayee Yojane around 4700 hectares area is covered
under drip irrigation benefitting 4,600 farmers across the state, of which, 1,130 SCP and
955 TSP beneficiaries.

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(iii) National Horticulture Mission (NHM)

Adoption of protected cultivation method, rejuvenation of the unproductive orchards,

rain water harvesting, organic farming, induction of Integrated Nutrition Management
(INM) and Integrated Pest Management (IPM), providing post harvest support, improving
marketing, enhancing the technical knowledge and skills of farmers, extension officials
and entrepreneurs through an array of training programmes.

To promote Post Harvest Management in Horticulture crops 2,400 activities have been
undertaken covering 1150 beneficiaries. Similarly, to strengthen horticulture sector, 665
Farm machinery is distributed to 500 farmers. Adopted protected cultivation in 960
hectares of area covering 720 beneficiaries and constructed 484 farm ponds to harvest
rain water and improve ground water levels.

(iv) Biotechnology

Department of Horticulture has developed Biotechnology Centres at Hulimavu,

Belagavi, Davangere, Shivamogga and Mysore all of which have been actively
functioning. Germplasm conservation, production of tissue culture saplings, mushroom
development, production of Bio-fertilizers and Bio-pesticides, soil, water & leaf analysis
are the important production and service providing activities being carried out in these
centres. Propagation of horticulture crops including medicinal and aromatic plants and
production of fruit grafts/seedlings, is also an important activity of the centre. Around
17,186 leaf and soil samples were analyzed to recommend essential nutrients deficient
in horticulture crops and soils and issued 71 number of Plant Sanitation Certificates to
promote export of horticulture products of the state. During the year 2022-23, 1.23 lakhs
Tissue Culture plants, 26 tonnes of bio-fertilizers and 9245 liters of Liquid biofertilizers
have been produced upto the end of November-2022.

(v) Paramparagath Krishi Vikas Yojana (PKVY)

It primarily aims to increase soil fertility and thereby helps in production of healthy food
through organic practices without the use of agro-chemicals. During the year 2022-23,
an amount of Rs.576.58 lakhs has been released and the entire amount has been spent
up to January 2023.

(vi) Research on arecanut yellow leaf disease and financial assistance to the alternate
crops

Farmers are encouraged to grow other crops such as banana, coconut, coffee, cocoa,
pepper, nutmeg, butter fruit, rambutan, litchi fruit, cinnamon, cloves, oil palm and other
crops In areas affected by arecanut yellow leaf disease, by providing 50% subsidy of
unit cost allocated for various crops under the MGNREGA scheme. During 2022-23, an
amount of Rs.714.85 lakhs has been allocated and Rs.564.85 lakhs has been released
upto January 2023.

(vii) Apiculture Development Programme

Apiculture being beneficial to mankind, is emerging as a profitable industry providing

export opportunity. Apiculture plays a major role in providing financial independence to
the bee keepers. As Honey bees help cross-pollination in Horticulture and Agriculture

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crops, high and good quality yield can be obtained. Having many medicinal properties,
honey is the gift of nature to the human kind and Bee keeping can be practiced without
much investment by landless small and marginal farmers, women and handicapped.
Around 2,500 beneficiaries have received scientific beekeeping training and a total of
7,950 honey boxes have been distributed.

(viii) Horticulture training programme: 11 training centers are functioning in the

department. Every year 400-450 farmers children are being trained.

(ix) Horti-clinic Activities: At present one State level and 28 district level horti-clinics
are functioning to create awareness among the farmers about the new technologies
developed for horticulture and to conduct training programmes and study tours to
farmers.

(x) Integrated Pest and Disease Management in Horticultural Crops: It is implemented

to increase the yield of Horticultural crops by protecting them from pests and diseases.
During 2022-23, an amount of Rs.500.00 lakhs has been allocated for parasite and
brachymeria production and to provide subsidy to farmers. As on November- 2022,
Rs.500.00 lakhs has been released, out of which Rs. 426.58 lakhs has been spent. There
are 24 parasite laboratories in the department where in, 86.12 lakh Goniozus parasites
and 330.00 Kg. Isaria were produced and distributed to the beneficiaries during 2022-23
(up to November 2022).

(xi) Incentives for Post Harvest Management Activities in Horticulture

Due to improper Post-Harvest management activities, the losses of Fruits and Vegetables
account for 20 to 22 percent. To prevent the post-harvest loss of horticultural products
and to provide incentives to entrepreneurs/FPOs with greater emphasis on processing of
horticultural crops and value added processing units an amount of Rs. 1099.50 lakh has
been provided to cover 1048 beneficiaries under this scheme for 2022-23.

(xii) Farmer Producers Organization (FPO)

To address the issues being faced by the small and marginal farmers pertaining to crop
production, technology, Supply of inputs, marketing, investments etc., the farmers
are being collectivized to form Farmer Producer Organizations that are owned and
governed by the farmers itself. The scheme supports horticulture farmers to increase
the productivity level and also the income resulting in livelihood security. Department is
successful in registering 163 FPOs till date. During 2021-22 and 2022-23 Under “Formation
and Promotion of Amrith FPO” programme, financial assistance of Rs.8.74 lakhs has been
provided for first year formation and maintenance of each FPO.

(xiii) Karnataka State Mango Development and Marketing Corporation

There are two Mango Development Centers comes under the Corporation, namely
Hogalagere Horticulture Farm, Srinivasapur taluk in Kolar district and Madikere,
Chintamani taluk in Chikkaballapur district. During the year 2022-23 and an amount
of Rs.50.00 lakhs has been earmarked of which, Rs.48.14 lakhs has been spent up to
November 2022. Mango growers are being educated and trained about pre-harvest and
post-harvest through demonstrations and technology dissemination.

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(xiv) Karnataka State Spices Development Board

Karnataka is one of the prominent spice growing states in India. There is a need to
have a greater attention in increasing the area of spices, improvement in production,
productivity and market infrastructure and to encourage for production of export quality
spices and value addition for which, “KARNATAKA STATE SPICES DEVELOPMENT BOARD,
HUBBALLI” is created. For the year 2022-23 an amount of Rs.40.00 lakhs is provided and
entire amount is spent for various developmental activities.

(xv) Under Integrated Farming in Coconut for Productivity Improvement Programme,

62500 coconut nurseries are developed during the year 2021-22.

(xvi) Karnataka State Horticulture development Agency (KSHDA)

Seeds and planting materials of different Horticulture crops are produced and supplied
to farmers at departmental rates in different Horticultural farms and nurseries. During
2022-23 as against the target of 78.42 lakhs of grafts/seedlings, 12.67 lakhs of grafts/
seedlings have been produced till November-2022.

Other Achievements

oo To enhance the efficiency in implementation of the programmes, department

has developed an IT application HASIRU (Horticulture Application for Scheme
Implementation and Regulating Utilization of Funds) for handling all the beneficiary
oriented schemes.
oo An innovative technology for tissue culture production of seed potato to overcome
dependency on seed tubers from Northern India. Apical rooted cuttings technology
has been successfully demonstrated in association with UHS, Bagalkot.
oo Technical guidelines are issued for controlling Arecanut Yellow Leaf Disease and
other major diseases and pests.
oo Market interventions through Farmer Producer Organization (FPO) are provided.
oo Under various farmer-oriented schemes of the department 50,335 farmers and around
28,000 hectare area is brought under Horticulture Crops. Around 573 hectares are
unproductive horticulture crop area is rejuvenated. Catered the farming community
with 60 lakh quality seedlings and grafts of various Horticultural Crops.
CHALLENGES & WAY FORWARD

oo During Covid-19 pandemic, the state experienced marketable surplus of 47.60 lakhs
metric tonnes of Fruits and Vegetables due to lack of cold storage and processing
centers. Marketable surplus was high in Kolar, Chikkaballapura, Chitradurga, Haveri,
Belagavi, Vijayapura, and Bagalkote districts when compared to other districts. In
these districts cold storage and processing units are to be increased to accommodate
the marketable surplus.

oo Food processing and cold storage units in Vijayapura, Belagavi, Bagalkot, Kalburgi to
save 30% post-harvest losses.

oo Create end to end (e2e) value chains for export-oriented Food Parks and Infrastructure

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and Cold chain infrastructure (Chilli in Byadagi, Rose onion in Chikballapur, Coffee in
Chikkamangaluru, Hassan and Kodagu).

oo Promote coffee plantation tourism in regions like Coorg, Kodagu, Chikkamagaluru

by developing experiential plantation stays and promoting coffee tourism packages
e.g. Tea tourism packages offered by government of West Bengal.

oo Promote sustainable agri-practices by creating awareness of the existing schemes

around subsidizing micro-irrigation (Per Drop More Crop, Micro-Irrigation Fund),
preserving soil health (Paramparagath Krishi Vikas Yojana, Soil Health Card) and host
of initiatives under National Mission for Sustainable Agriculture. Prioritize districts
like Belagavi, Raichur, Vijayapura, Bagalkote which have high potential for micro
irrigation.

oo Promote and Incentivize FPO’s to leverage Agri-tech startup solutions to get real time
market intelligence, D2C inputs, and market linkages to improve D2C business thus
improving farmer earnings.

oo Collaborate with FPOs to train farmers around soil protection practices such as
residue mulching, no till farming, growing a cover crop or forage, managed grazing,
using compost and bio fertilizers, drip sub fertigation, agro-forestry, integration of
crops with trees and livestock, recycling of all bio waste on land.

oo Develop FPOs to act as knowledge centers, e.g., display price transparency systems
educate farmers about various market rates other than APMCs but also registered
procurement agencies including Agri startups and large-scale processing centers
(which FPO’s to prioritize).

oo Co-develop commodity specific digital platforms (e.g. shrimps, mangoes, bovine,

milk products.) to connect directly with international buyers and ensure adherence
to export requirements, awareness about SPS standards of importing markets.
e.g. Spices Board launched 3 D virtual platform aimed at connecting India’s spice
exporters with buyers from around the world.

oo Create brand Karnataka for fruits, vegetables and other products in global markets
to improve product demand and provide opportunities for exports e.g. Thailand has
created a global brand for Thai produce.

oo Setup state of the art Post Harvest Management centers within 25kms of production
(Incentivize private investment following ODOP schemes)to improve post-harvest
processing from 1%-2% and reduce spillage form current levels of 25%-30%, improve
the proportion of horticulture product meeting Grade-A criteria from current levels
of 30%-45% and fetch better prices for farmers.

oo Setup “Seed to sales” single window centers (similar to AP’s Rythu Bharosa Kendras)
with the name” Farmers Welfare Centers(FWCs)” in every GP by using staff and
infrastructure of Department of Agriculture, Horticulture, Sericulture and AH &
Fisheries, KVKs and Agricultural Universities (Sell pre-tested quality seeds, certified
fertilizers and livestock feed, provide farm equipment and enable farmers to sell their
produce at the prevailing minimum support price (MSP) via supporting systems of

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e-cropping, geo-tagging, soil testing and consultancy regarding what crops to sow
and quality and type of fertilizer to be used.

oo To encourage the establishment and use of Pakhouse, Onion storage structures,

Coconut storage units and processing units for scientifically sorting, storing and
packing in a variety of containers as per requirement for internal marketing and
exporting of products for better management after harvesting of horticultural crops.

6.5 ANIMAL HUSBANDRY

The Livestock sector plays vital role in development of rural economy of the State. In
Karnataka majority of the population is dependent on agriculture and allied activities.
As per the 20th Livestock Census, Karnataka has 3.03 crores of livestock and 5.95 crores
of poultry population and its share in all India was 5.41% and 6.98% respectively. As per
this census, number of Livestock population available per lakh population in the State is
81973. Districtwise information is furnished Map 6.5.

The share of Animal Husbandry in total Gross State Domestic Product (GSDP) of the
state was 3.80%. During 2021-22, in Buffalos milk production, India ranks first in the world,
similarly in Cow milk production India stands second rank. During 2021-22, Karnataka
state stands 10th rank among the States. The production of milk in the state was 11.80
million metric tonnes during the year 2021-22.

Animal Health and Veterinary Services

The Department of Animal Husbandry and Veterinary services provide services through
its institutional network. During 2021-22, the livestock and poultry are rendered health
services through a network of 4214 Veterinary Institutions, comprising of 01 Super
Speciality hospital, 4 Speciality Hospitals, 27 District Polyclinics, 665 Taluk/Hobli level
Veterinary Hospitals, 2135 Hobli/Village Veterinary Dispensaries, 1206 Primary Veterinary
Centers and 176 Mobile Veterinary Clinics. Further, 64 other Veterinary Institutions are
also rendering services.

To provide health care to the animals and for improvement and development of breeds
of animals, various programmes are being implemented during 2022-23. Schemes being
implemented during 2022-23 and financial progress achieved up to 20th January 2023 to
increase the growth in this sector are as mentioned below.

(Rs. in Crores)

Allocation Total
Sl. No. Scheme Name Release
(BE+SE) Expenditure
1. Director Animal Husbandry & 148.52 137.89 115.41
Veterinary Services

2. Unspent SCSP-TSP Amount as per the 0.74 0.56 0.49

SCSP-TSPAct 2013

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Allocation Total
Sl. No. Scheme Name Release
(BE+SE) Expenditure
3. Institute of Animal Health and 23.56 23.06 18.96
Veterinary Biologicals and Clinical
Laboratories, Bangalore

4. Assistance to Pinjarapole and Goshalas 39.11 29.16 26.87

5. State Poultry Farms 3.56 3.44 2.59

6. Karnataka Sheep and Wool 17.12 14.58 11.93
Development Corporation Limited

7. Animal Husbandry Statistics 3.50 3.25 2.55

8. Establishment of Veterinary and 133.52 133.03 90.97

Animal Sciences University
9. Grants to Animal Husbandry Co - 2.50 1.88 1.88
Operatives
10. Incentive to Milk Producers 1170.00 1125.00 1112.48

11. Construction of Veterinary Institutions 10.86 10.79 10.79

Building under RIDF
12. Education Extension and Research- 36.00 27.00 27.00
KVAFSU, Bidar
13. Establishment of Mega Dairy 60.00 55.00 5.00
14. Executive Establishment 78.76 75.09 93.69
15. Supply of Drugs, Chemicals & 54.39 48.62 56.20
Equipments
16. Maintenance of Buildings 22.25 15.39 6.57
17. Strengthening of Extension Units 7.36 5.74 4.93
18. Opening of Rural Veterinary 637.99 605.21 429.30
Dispensaries and their Upgradation as
Taluk Level Dispensaries
19. CSS - Control of Animal Diseases 42.40 1.87 1.13

20. CSS - Integrated Sample Survey for 7.19 6.22 5.15

Estimation of Milk, Meat, Egg and
Wool Products
21. CSS - National Livestock Mission 14.43 0.00 0.00

Total 2513.76 2322.78 2023.89

Source: Avalokana

An amount of Rs. 2513.76 crores is provided in the budget for 2022-23 of which, Rs.
2322.78 crores is released upto 20th January 2023. The expenditure incurred is Rs. 2023.89
crores. Out of the total allocation, the productive allocation is Rs. 1575.90 Cr. of which the
expenditure incurred is Rs. 1310.69 crores (upto 20th, January 2023).

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Achievements

Table 6.4: Livestock and Poultry Production

Item Unit 2020-21 2021-22 2022-23 (up to Nov. 2022)

Milk ‘000 Tones 10936 11796 8453
Meat * Tones 364279 395528 300301
Wool Tones 1052 862 486
Eggs No. in crores 761.99 826.38 604.18

* Includes Poultry Meat.

The production of Milk and Meat during 2021-22 was 117.96 and 3.96 lakh tones respectively.
The Wool production is 862 tones and 826.38 crores Eggs were produced. During
2022-23 (upto November 2022) 84.53 lakh tones of Milk, 3.00 lakh tones of Meat is
produced and 604.18 crores eggs are produced.

(i) Performance under Artificial Insemination (AI) Programme

Artificial Insemination (AI) facility has been provided through 4234 institutions. Sperm
stations are located at Bengaluru and Dharwad. During 2021-22, 8.17 lakhs calves were
born, out of 34.37 lakhs cattles inseminated. During 2022-23 (up to November 2022), 5.27
lakhs calves are born, out of 22.27 lakhs cattles inseminated.

(ii) Assistance to States for Control of Animal Diseases (ASCAD)

Under this programme, financial assistance is provided for systematic control of livestock
diseases of national importance. During 2022-23 (upto Nov-2022) Livestock vaccinated
are as mentioned below:

oo 64,49,701 of cattle, buffaloes, sheep and goat were vaccinated against Haemorrhagic
Septicemia.
oo Preventive vaccination against Enterotoxaemia (ET) was done for 1,71,45,607 sheep
and goats.
oo Vaccination against Blue tongue was done for 68,467 sheep and goats. 2,77,444
cattle, buffaloes, sheep and goat were vaccinated for Anthrax.
oo As a part of surveillance work 63 brain samples from clinically suspected animals
and 38 brain samples from slaughtered animals were collected and forwarded to the
IAH &VB laboratory and ascertained that BSE is not present in our state.
oo Under NADCP 3rd round of FMD vaccination is under progress. As on 22-12-2022, 71.54
lakh cattle & Buffaloes were vaccinated.
oo Under NADCP-Brucellosis, 153792 female calves (cattle & buffaloes) were vaccinated.
iii) National Animal Disease Reporting System (NADRS)

This programme envisages periodical online reporting of outbreaks of diseases from the
field veterinarians. All the 239 blocks and 30 districts and one centre at state level have

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been provided with the hardware, software and internet facility. The state monitoring
unit located in Bangalore consolidates the reports at state level and forwards to the state
Govt and GOI. Rs. 5.00 lakh is allocated to implement this programme for 2022-23.

(iv) Establishment and Strengthening of Veterinary Hospitals and Dispensaries

(ESVHD) – Pashu Sanjeevini-Mobile Veterinary Units
The Central Government has provided a grant of Rs.44.00 crore under the Livestock
Health and Disease Control Program to provide mobile veterinary vehicles to Karnataka
State to provide emergency veterinary services at the doorsteps of the farmers. 275 well-
equipped mobile veterinary vehicles are in the state for 289.97 lakh cattle at the rate of
one mobile veterinary vehicle for every one lakh cattle population.

(v) Feed and Fodder Development:

To mitigate the shortage of green fodder in the State livestock farms, fodder production,
fodder seed production and training of farmers are being undertaken with the assistance
of State disaster relief fund, RKVY Centrally sponsored scheme and Calamity Relief funds.
During 2022-23 (up to November 2022), 65550 fodder seed minikits have been procured
at a cost of Rs.2.40 crore, resulting in production of 491.63 lakh tonnes of green fodder.
1,27,500 lakhs Root slips were distributed in farms.

(vi) Permanent Pasture:

Area under Permanent pasture in the state is 8.72 lakhs hectares (as per Karnataka At
Glance 2021-22). While livestock population is 2.86 crores as per 2019 census. The below
mentioned 11 districts have lower per capita pasture land. Hence, in these districts high
nutrition feed is to be encouraged by distributing the fodder seeds kits on priority basis.

Permanent Per capita

Total Cattle
Sl. No. District Pasture (In availability of
Population
hectares) pasture(ha)
1 Raichur 1298145 19816 0.015
2 Haveri 804735 12209 0.015
3 Yadgir 984714 11755 0.012
4 Bengaluru (Rural) 401590 3879 0.010
5 Dharwad 387402 3571 0.009
6 Belagavi 2853131 21360 0.007
7 Vijayapura 1295358 9575 0.007
8 Vijayanagara 1302662 6486 0.005
9 Gadag 779664 2598 0.003
10 Bagalkot 1463945 3429 0.002
11 Ballari 770780 389 0.001

The district wise area under pasture to the total geographical area of the district is
furnished in Map 6.6 and the districtwise per capita availability of pasture is furnished in
Appendix 6.6.

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(vii) Karnataka Sheep and Wool Development Corporation (KSWDCL):

Karnataka Sheep and Wool Development Corporation has established four sheep
Breeding farms and one goat Breeding Farm in the state. Distributed 174 crossbreed/
Improved varieties of rams and bucks to shepherds for breeding purpose for the year
2022-23 (up to November 2022) through breeding farms. Sheep and Wool Producers Co-
operative Societies affiliated to KSWDCL are being assisted financially to strengthen and
for active functioning. During the year 2022-23 (upto Nov-2022) Rs. 85.00 lakhs provided
for 17 Societies as one time grant of Rs. 5.00 lakhs each.

(viii) Piggery Development

In the State, there are 5 pig breeding stations, which are located in Hesaraghatta in
Bengaluru Urban District, Kalasa in Chickkmagluru District, Kudige in Kodagu District,
Koila in Dakshina Kannada District and Bangarpet in Kolar District. Among other activities,
these stations are engaged in production and distribution of pure breed piglets, training
and extension services in modern pig rearing to the beneficiaries. Most of the unemployed
educated youths and farmers are engaged in modern pig rearing as a result the lifestyle
of the pig rearers is being improved by the production of good quality of pork. During
the year 2021-22 Piggery rearing Amruth FPOs have been established in 05 districts viz.,
Mysuru, Mandya, Hassan, Tumkuru & Dharwad. 1935 piglets are distributed to pig rearing
farmers as against the target of 2200 during 2022-23 (upto November 2022). On pig
rearing 887 farmers are trained as against the target of 950.

(ix) Poultry Development

There are 07 poultry farms functioning under the Department of AH&VS for development
of poultry in the State. The major developmental activities are breeding and rearing of
Giriraja parent stock and supply of day old chicks to the farmers. During 2022-23 (up to
the end November- 2022) 871 farmers were trained in poultry rearing and 246070 eggs
and 104859 chicks were produced.

(x) Karnataka Milk Federation

The Karnataka Cooperative Milk Federation has 27 dairy processing plants with a capacity
of 92.50 lakh liters/day. Organization has 44 milk chilling centers, 1941 B.M.C units and
also 7 milk product dairies which manufacture 288 MT milk powder and different
milk products every day. The Karnataka Milk Federation has 7 cattle feed plants which
produces 70616 MT’s of cattle feed and 550 MT’s of Mineral mixture/month. These plants
have secured quality mark certification for quality production and supply of cattle feed
and mineral mixture to producers. At present 15210 primary dairy co-operative societies
are functioning, under 16 district milk unions with 26.28 lakh farmers who are enrolled as
members, out of which, 8.76 lakh farmers are active members.

Other Achievements

oo Hundred Government Goshalas are being constructed by the State Government to

preserve the weak, sick, orphan, animals, which farmers cannot rear out of which,
twenty Goshalas have already been started in the State.

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oo Punya Koti Dattu Yojana has been started first in the country to conserve cattle in
government and private goshalas. Through this online portal, public, organizations
can adopt cattle and donate for their maintenance. So far 208 cattle have been
adopted through online portal. An amount of Rs. 22.33 lakhs donations is collected
for maintenance of the cattle.
oo Lumpy skin disease, 99,34,776 cattle have been vaccinated as a precautionary
measure against Lumpy skin disease. Rs 37.00 crore has been released by the
government to compensate the dead calves, cattle and bulls.
CHALLENGES & WAY FORWARD

oo For every 5000 livestock units, one veterinary institute is to be headed by a qualified
veterinarian in rural areas is the pre requisite as per the recommendation of National
Council of Agriculture.
oo Area under permanent pasture in the state is 8.72 lakh hectares. While livestock
population is 2.86 crores as per 2019 census. Eleven districts have lower per capita
pasture land. Hence, in these districts high nutrition feed is to be encouraged by
distributing the fodder seeds kits.
oo Conservation and development of Indigenous Breeds of cattle like Krishna Valley,
Amruthmahal, Khillar, Deoni and breeds of Sheep and Goat.
oo Inadequate diagnostic facilities and lack of sufficient number of subject matter
specialists.
oo Lack of effective disposal of carcasses to check the spread of infectious agents.
oo Lack of availability of bulls having high yield germ plasm of milk.
oo Lack of availability of minimum supportive prices for animal produce.
oo Lack of Insurance products for poultry sector.
oo Geo-tagging and referencing for real-time monitoring, IT enabled initiatives to be
included for monitoring and tracking of livestock.
oo Ensure regular vaccination livestock programme, livestock ambulance service, wider
coverage and bridge the gap of access of veterinary hospital, timely action and
prevention of disease outbreak.
oo Need for sheds to sheep/goat for their safety and protection especially for medium
farmers, widows and distressed women and ST/SC beneficiaries.
oo Organizing training on value added product preparation, livestock management and
support for branding the product.
oo For fodder security, there is urgent need for conserving natural pasture /Kaval/
village grass lands and open fodder banks at district level (Kalyana Karnataka) to be
established.
oo Consumption of milk is lower than ICMR recommended intake of 300 grams/per
day and hence needs counselling (through Anganwadi workers) to increase milk
consumption by the beneficiary households.

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oo Financing of Modern abattoirs and slaughter houses-meat processing industry.

oo Preparedness for control of Avian Influenza / Equine Influenza.
oo Special focus on low productivity by addressing the problem on animal reproduction,
infertility, low fat and SNF etc.
oo Providing effective delivery systems for adapting new and innovative technologies.
6.6 FISHERIES

Fisheries is an important sector in the state contributing fish production besides, source
of foreign exchange earner. Fish being one of the sources of quality protein, use of fish
as food helps in eradication of malnutrition among rural population. The vast marine,
brackish water and inland freshwater resources are the source of fish production in the
State. Karnataka is in 5th position in marine fish production and 7th position in inland fish
production in the country during 2021-22. The total fish production during 2021-22, is
10.74 lakh metric tonnes. The share of fisheries in total GSDP of the state was 0.35%.

Karnataka State has 313.02 Km long coast line along with 27000 Sq. km continental shelf
area, 5.83 lakh hectares of various inland water resources and has vast scope for fisheries
development. The brackish water area of 8000 hectares also provides good scope for
shrimp/fish culture. There are about 9.84 lakh fishermen involved in various fisheries
activities in the state of which 3.31 lakh are in marine and 6.53 lakh are in inland.

Fish Production

Department has 23513 fishing boats including 4599 Mechanized boats, 10545 Motorised
boats and 8369 traditional boats. The annual fish production in Karnataka has shown a
considerable increase from 2.97 lakh metric tons in 2005-06 to 10.74 lakh metric tons in
2021-22 with an annual average growth rate of 10.33%. During the year 2022-23 (up to Nov.
2022) 5.52 lakh MTs. fish production was produced.

Fish seed production during the year 2021-22 was 7669.06 lakhs. During the year 2022-23
(up to Nov. 2022) 7320.50 lakhs fish seeds produced as against the target of 11251 lakhs.

Schemes being implemented during 2022-23 and financial progress achieved up to 20th,
January 2023 to increase the growth in this sector are as mentioned below.

(Rs. in Crores)

Allocation Total
Sl. No. Scheme Name Release
(BE+SE) Expenditure
1. Director of Fisheries 29.37 29.58 22.74
2. Assistance for Development of 9.70 7.73 3.19
Inland Fisheries
3. Fish Seed Stocking in Reservoir 2.00 1.49 0.50
4. Supply of Kerosine to Conventional 1.73 1.73 1.30
Boats
5. Supply of Fishery Requisite Kits 1.25 1.04 0.89

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Allocation Total
Sl. No. Scheme Name Release
(BE+SE) Expenditure
6. Electricity used by Ice Plants 4.00 4.00 3.00
7. Reimbursement of Differential 0.50 0.38 0.38
Interest to Commercial Banks
8. Renovation of Fishing Harbours, 35.00 19.02 16.93
Landing Centres and Dredging
works
9. Construction of Fisheries Link Roads, 2.00 0.48 0.00
Bridges and Jetties - with NABARD
Assistance(RIDF)
10. District and Other 32.20 28.24 31.09
Establishments(Fisheries Dept)
11. Construction & Maintenance of 4.81 3.62 0.90
Fisheries Buildings & Facilities
12. Assistance to Inland Fisheries 7.83 6.14 6.47
Development
13. Assistance for Construction of Fish 1.73 1.38 1.63
Markets and Marketing of Fish
14. Exhibitions and Training (Fisheries 1.34 1.08 1.00
Dept)
15. Vidyanidhi Scheme-Scholarship for 39.72 0.00 0.00
Higher Education of Fishermen/
Fish Farmer’s Children
16. CSS - Fishermen Welfare 3.06 2.30 2.30
17. CSS - Blue Revolution/Integrated 62.80 48.12 42.83
Development and Management of
Fisheries
18. CSS - Fishermen Welfare 3.06 2.30 1.53
19. CSS - Construction of Fishing 71.93 71.93 52.91
Harbours
Total 314.03 230.56 189.59

Source: Avalokana

An amount of Rs. 314.03 crores is provided in the budget for 2022-23 of which, Rs.
230.56 crores is released upto 20th, January 2023. The expenditure incurred is Rs. 189.59
crores. Out of the total allocation, the productive allocation is Rs. 254.82 Cr. of which the
expenditure incurred is Rs. 137.41 crores (upto 20th, January 2023).
Achievements
(i) Supply of Kerosene to traditional boats
In Karnataka coast many traditional boats are involved in fishing activity and these boats
have been installing outboard engines stage by stage and are able to go for fishing too
far off from the seashore in short time and have been successful in profitable fisheries.

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These 8030 motorised boats are being supplied with 300 litres kerosene per month per
boat at Public Distribution System (PDS) rate. During 2022-23, an amount of Rs.129.75
lakh expenditure is incurred as against the allocation of Rs. 173 lakhs.

(ii) Assistance for Inland fisheries development

(a) Under the scheme “Encouragement for inland fish culture” 2000 fish fingerlings will
be stocked in an hectare effective water spread area through Fishermen Co-operative
Societies at free of cost. 342 tanks covering an area of 9430 Ha. have been stocked
with fish fingerlings at a cost of Rs. 282 lakhs.
(b) Under the new scheme “Shrimp and brackish water in fin fish culture” Rs.74.62 lakh
has been spent towards shrimp farming establishing cages by 273 beneficiaries.
(c) Rs.200.00 lakh was allocated for upgrading the fish seed production farms in the
budget speech.
(iii) Stocking of fish seed in reservoirs

There are 83 reservoirs in the State. The total water spread area of these reservoirs is 2.73
lakh hectares. It is very much essential to stock these reservoirs with fast growing species
such as Catla, Rohu, Mrigal which will not be bred naturally.

(iv) Group Accident Insurance Scheme

Under this Scheme, an amount of Rs. 22.88 lakhs Insurance coverage has been provided
for 78,983 registered fishermen.

(v) Supply of fishery requisite kits

885 beneficiaries are covered under the scheme with an expenditure of Rs. 88.51 lakhs
during the year 2022-23 (up to November 2022).

(vi) Blue Revolution - Integrated Development and management of Fisheries:

Central Government has introduced a flagship programme called Pradhan Mantri Matsya
Sampada Yojana- Integrated development and management of fisheries to bring about
a significant growth in the fisheries sector in the next 5 years (2020-21 to 2024-25). All
aspects of the fisheries sector are included in the scheme and the beneficiaries can
take up components in culture, capture, value addition, marketing and infrastructure
development. The beneficiaries can avail a financial assistance of 60% or 40% of the
assigned unit cost if they belong to the SC/ST/women and General categories respectively.
The assistance is shared by the state and central on a 40:60 basis. During the year 2022-
23 an amount of Rs. 4811.39 lakhs has been spent (up to November 2022) as against the
allocation of Rs. 6280.14 lakhs.

CHALLENGES & WAY FORWARD

oo New candidate species like Pungasius, GIFT Tilapia and local varieties of carps are to
be introduced for culture.

oo Inadequate availability of inputs including fish seeds.

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oo High Cost of feed and non availability of feed locally is affecting the feed based
aquaculture.

oo Create major ship building infrastructure around Mangalore.

oo Operationalize container handling facility at Mangalore port to divert in bound and

out bound cargo from Chennai, Tuticorin and Kochi ports.

oo Expand production linked incentive schemes worth 25 billion dollars to promote

manufacturing and exports using hub and spoke model.

oo Open sea cage culture to promote mariculture as an alternative to capture fishery.

oo Implementation of “MISSION FINGERLINGS” to address the inadequate supply of

quality fish seed.

oo Strengthening Inland fish marketing infrastructure and cold chain.

6.7 FOOD SECURITY

Food, Civil Supplies and Consumer Affair Department is one of the major Government
Departments involved in providing food security to the poor through Public Distribution
System (PDS). The Department is implementing Public Distribution System through
which it is distributing fixed quantity of food grains at subsidized rates to below poverty
line to provide food security to eligible households and achieve hunger free state.
Kerosene is being distributed at subsidized rates under PDS mainly for illumination
purpose. Besides this, kerosene is also allotted to fishing boats. As per the guidelines of
both Central and State Government AAY (Anthyodaya Anna Yojane), Priority Household
(PHH) and Non Priority Household (NPHH) cards are issued to eligible households on
a regular basis. Computerisation of PDS has been adopted by the State under which
Aadhar details of every PDS beneficiary is linked to the ration card and data base of PDS
beneficiary has been created.

Priority and Non Priority Household Ration Cards

Under NFSA the concept of BPL and APL has been replaced with the concept of “Priority
households” and “Non-Priority households”. Under this Act the Central Government has
specified percentage population coverage under priority household as 76.04 % in rural
area and in 49.36% urban area.

Various Schemes implemented by the Food and Civil Supply and Consumer Affairs
Department during 2022-23 and the progress achieved upto Jan 2023 is as detailed
below.
(Rs. in crores)

Scheme Name Allocation (BE+SE) Release Total Expenditure

Director, Food and Civil 65.44 57.04 40.07
Supplies

Payments under the Karnataka 0.50 0.00 0.00

Guarantee of Services Act

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Scheme Name Allocation (BE+SE) Release Total Expenditure

Karnataka State Food 1.49 1.11 0.40
Commission

Unspent SCSP-TSP Amount as 12.92 6.46 6.41

per the SCSP-TSPAct 2013

Subsidy for Food Grains 2800.00 1765.53 1550.83

Distribution for AAY and
PHH beneficiaries under
Annabhagya Scheme

IT Initiative for Public 2.50 1.20 0.46

Distribution System

Subsidy for Rice Distribution 10.00 0.00 0.00

for NPHH beneficiaries under
Annabhagya Scheme

Setting up of Consumer Clubs 0.40 0.20 0.05

for Consumer Awareness

Consumer Welfare Activities 0.30 0.15 0.03

State Consumer Helpline 0.30 0.22 0.14

Consumer Fora 39.90 37.46 28.62

Controller of Legal Metrology 24.78 23.12 18.81

and Director of Consumer
Protection

Strengthening of Weights and 1.00 0.88 0.52

Measures Infrastructure

CSS - Fortification of Rice 25.01 0.00 0.00

& its Distribution in Public
Distribution System

Total 2984.54 1893.37 1646.34

As against Rs. 2984.54 crores allocated for the year 2022-23 an amount of Rs. 1893.37 crores
is released upto the end of Jan 2023. The expenditure incurred is 1646.34 crores. Out of
the total allocation, the productive allocation is Rs. 2814.92 Cr. of which the expenditure
incurred is Rs. 1558.25 crores (upto 20th, January 2023).

Achievements

oo Under the National Food Security Act 2013, 10,90,851 Antyodaya Anna, 1,16,27,010
Priority Ration Cards and 24,74,037 Non-Priority Ration cards are in the State.
oo All these ration cards and details of the card members are computerised and linked
with Aadhar. 87.65% of ration cards and 94.8% of the members have completed the
e-KYC.

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 Agriculture and Food Management
207

oo 20,222 fair price shops are distributing ration through bio authentication.
oo 32,677 ineligible AAY cards have been cancelled and converted to NPHH.
oo Rs.3.82 crores fine has been levied for the ineligible ration card holders.
oo To increase the income of the fair price shop owners the following initiatives /
programmes namely, Common Service Centres, Retail sale of 5kg LPG cylinders, sale
of non-PDS commodities are undertaken.
oo One nation one ration card scheme is implemented under which any ration card
holder of the state and other states are allowed to avail ration at any fair price shop in
any part of the state.
oo 12,19,949 sakala applications have been disposed.
oo Against the black marketing of food grains FIR has been booked for 449 cases.
CHALLENGES AND WAY FORWARD

At present under Public Distribution System Rice, Ragi and Jowar are distributed to the
AAY and PHH card holders. The other millets namely Bajra, Navane (Foxtail millet), Saave
(Little millet), Haraka (Kodo millet), Sajje (pearl millet), Baragu (Proso Millet) are rich in
dietary fibres. If these millets are also distributed to the AAY and PHH card holders along
with rice it will improve health conditions of the beneficiaries.

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MAP 6.1

Districtwise percentage of Marginal and Small farmers greater than State average of 80.41% to
Total farmers as per 2015-16 Agriculture Census

0 15
±
30 60
Km
1 cm = 28.5 Km
Bidar
73.87

Kalburgi
61.74

Vijayapura
53.9 Yadgir
69.34

Bagalkot
Belagavi
69.76 Raichur
75.14
67.68

Koppal
69.88
Dharwad Gadag
65.86 64.06 Ballari
71.32

Vijayanagara
Legend
Uttara Kannada
91.69 Haveri 74.05 District Boundary
76.01
<80.41

Davanagere >80.41
81.13 Chitradurga
Shivamogga 71.55
87

Chikkaballapura
Udupi Chikkamagaluru Tumakuru 91.52
92.17 83.05 82.36 Bengaluru (Rural)
92.76
Kolara
92.52
Hassan Bengaluru (Urban)
Dakshina Kannada 92.08 93.38
91.76
Mandya Ramanagara
95.5 93.66
Kodagu
67.67
Mysuru
93.96
Chamarajanagara
Map Description: 89.61
"This map shows Districtwise percentage of Marginal and small Land
Holders"

Generated from : K-GIS,KSRSAC

Karnataka Economic Survey 2022-23

 Agriculture and Food Management
209

MAP 6.2

Districtwise percentage of Net area sown less than State average of 60.12% to
total Geographical area

0 15
±
30 60
Km
Bidar 1 cm = 27.5 Km
71.09

Kalburgi
81.33

Vijayapura
88.71 Yadgir
76.7

Bagalkot
Belagavi 76.96
74.19 Raichur
80.13

Koppal
75.97
Dharwad Gadag
80.52 84.43 Ballari Legend
62.85
District Boundary

Vijayanagara State Average : 60.12 %

Uttara Kannada 59.98
Haveri <40.00
12.17
77.6 40.00 - 60.11
>60.12
Davanagere
72.48 Chitradurga
Shivamogga 58.24
29.34

Chikkaballapura
Udupi Chikkamagaluru Tumakuru 49.84
30.7 42.65 54.49 Bengaluru (Rural)
55.9
Kolara
56.1
Hassan Bengaluru (Urban)
Dakshina Kannada 62.89 16.97
39.83
Mandya Ramanagara
58.49 48.7
Kodagu
48.75
Mysuru
55.94
Map Description: Chamarajanagara
"This map shows District-wise percentage of Net Area Sown to 31.34
Geographical Area "

Generated from : K-GIS,KSRSAC

Karnataka Economic Survey 2022-23

 Agriculture and Food Management
210

MAP 6.3

Districtwise percentage of Cultivable waste greater than State average of 2.06% to

total Geographical area

0 15
±
30 60
Km
Bidar 1 cm = 27.5 Km
3.58

Kalburgi
0.86

Vijayapura
0.52 Yadgir
0.46

Bagalkot
Belagavi 0.31
0.7 Raichur
2.4

Koppal
0.46
Dharwad Gadag
0.62 0.14 Ballari
1.89
Legend
Vijayanagara District Boundary
Uttara Kannada 2.5
Haveri <2.06
0.63
0.62 >2.06

Davanagere
1.16 Chitradurga Tumakuru
Shivamogga 2.8 5.88
1.92

Chikkaballapura
Udupi Chikkamagaluru Tumakuru 1.17
8.49 2.68 5.88 Bengaluru (Rural)
1.7
Kolara
1.71
Hassan Bengaluru (Urban)
Dakshina Kannada 2.13 2.6
3.74
Mandya Ramanagara
8.42 0.33
Kodagu
1.82
Mysuru
3.16
Chamarajanagara
1.34

Generated from : K-GIS,KSRSAC

Karnataka Economic Survey 2022-23

 Agriculture and Food Management
211

MAP 6.4

Groundwater Status – As on March 2022

Kamalanagara

Bhalki
Aurad

0 15
±
30 60
Km
Hulasuru 1 cm = 27.5 Km
Bidar
Humnabad

Basavakalyan

Chittaguppa

Kamalapura
Aland

Chincholi
Kalagi
Chadachana
Gulbarga
Afzalpur

Indi Shahbadha
Chittapur Sedam
Alamela
Jevargi

Sindagi
Tikota Bijapur Yadrami
Devara Hipparagi Yadgir Gurumithakala
Athani Shahapur
Kagavada
Babaleshwara Basavan Bagewadi Vadagera
Jamakhandi Talikote Shorapur
Nippani Kolhara
RaibagRabakavi Banahatti
Chikkodi
Nidagundi Hunisigi
Devdurga
Bilagi Muddebihal
Mudalagi Mudhol
Hukkeri Bagalkote Lingasugur Raichur
Gokak Hungund Sirivara

Guledagudda
Yaragatti Ramadurg Ilkal Manvi
Maski
Badami
Belagavi
Savadatti Kushtagi
Bailhongal
Naragund Gajendragad Sindhanur
Rona
Yelburga
Khanapur Kitthuru Navalgund Kanakagiri
Karatagi

Alnavara
Dharwad
Hubli
Annigere
Gadag
Kukanuru Gangavathi Siraguppa Legend
Kampli
Hubballi Nagara
koppal
Haliyal Mundargi Hospet
Kurugodu
District Boundary
Dandelli Kundgol

Category
Kalgatgi
Joida Ballari
LaxmeshwarShirahatti
Hagaribommanahalli
Shiggaon
Sonduru SAFE
Savanur Hadagali
Karwar
Yellapur
Mundgod SEMI CRITICAL
Haveri
Hangal
Kotturu
Kudligi CRITICAL
Ankola Harapanahalli Molakalmuru
Sirsi
Byadagi
Ranebennur
OVER-EXPLOITED
Hirekerur Jagaluru
Kumta
Soraba
Ratteehalli Harihar Davanagere
Siddapur Challakere

Honnavar Shikaripura Chitradurga

Honnali
Pavagada
Nyamati
Sagara
Holalkere
Bhatkal Channagiri
Shimoga Hiriyur
Hosanagar
Bhadravathi
Bynduru
Hosadurga Sira Bagepalli
Ajjampura Madhugiri
Thirthahalli
Gudibande
Kundapur Tarikere
Gauribidanur
Narasimharajapura
Koppa Kadur Chiknayakanahalli Koratagere Chikballapur
Bramhavara Shidlagatta Chinthamani
Hebri
Srinivaspura
Sringeri
Udupi Chikmagalur Gubbi Tumkur Doddaballapura
Arsikere
Tiptur Devanahalli
Kapu Karkala Kalasa
Nelamangala Kolar Mulabagilu
Hoskote
Belur Turuvekere Yelahanka
Mudigere
Mulki Mudabidri
Belthangady Hassan Magadi Bangalore (North) Bangalore-East K.G.F
Channarayapatna Malur
Mangalore Kunigal Bangarpet
Sakleshpura Alur
Bantwal Bangalore-South
Nagamangala
Ullala
Ramanagar Anekal
Kadaba Holenarasipura
Puttur Arkalgud Krishnarajpet Harohalli
Somavarapete Channapatna
Sulya Mandya Maddur
K.R.Nagar Pandavpura

Kushalanagara Kanakpura
Piriyapatna Srirangapatna
Madikeri Malavalli
Hunsur
Mysuru T.Narasipura
Virajpet
Kollegala

Ponnampete Nanjangud
Heggadadevanakote Yalandur Kollegala(Hanur)

Saraguru Chamarajanagara

Gundlupet

Generated from : K-GIS,KSRSAC

Karnataka Economic Survey 2022-23

 Agriculture and Food Management
212

MAP 6.5

Districtwise Livestock population less than State average of 81973, per lakh rural population –
2019 Livestock Census

0 15
±
30 60
Km
1 cm = 28.5 Km
Bidar
46794

Kalburgi
64028

Vijayapura
87828 Yadgir
107150

Bagalkot
Belagavi
118287 Raichur
85118
93146

Koppal
103065
Dharwad Gadag
51829 119377 Ballari
Legend
102426
District Boundary

State Average: 81973

Uttara Kannada Vijayanagara <50000
49821 Haveri 140861
68687 50000 - 81972
>81973
Davanagere
63051 Chitradurga
Shivamogga 158566
74063

Chikkaballapura
Udupi Chikkamagaluru Tumakuru 108919
45294 59323 112517 Bengaluru (Rural)
61248
Kolara
80147
Hassan Bengaluru (Urban)
Dakshina Kannada 72952 52025
42895
Mandya Ramanagara
80709 76589
Kodagu
31185
Mysuru
54768
Chamarajanagara
Map Description: 64884
"This map shows Districtwise Number of Livestock per lakh Rural
Population "

Generated from : K-GIS,KSRSAC

Karnataka Economic Survey 2022-23

 Agriculture and Food Management
213

MAP 6.6

Districtwise percentage of Permanent Pasture area greater than State average of 4.58% to
total Geographical area

0 15
±
30 60
Km
Bidar 1 cm = 27.5 Km
2.58

Kalburgi
2.36

Vijayapura
0.91 Yadgir
2.28

Bagalkot
Belagavi 0.52
1.59 Raichur
2.37

Koppal
3.23
Dharwad Gadag
0.84 0.56 Ballari
0.1 Legend
District Boundary
Vijayanagara State Average : 4.58 %
Uttara Kannada 1.17
Haveri <4.58
0.66
2.52 >4.58

Davanagere
2.43 Chitradurga Tumakuru
Shivamogga 11.51 7.18
19.28

Chikkaballapura
Udupi Chikkamagaluru Tumakuru 13.73
2.98 11.61 7.18 Bengaluru (Rural)
1.69
Kolara
9.75
Hassan Bengaluru (Urban)
Dakshina Kannada 4.97 3.13
1.69
Mandya Ramanagara
6.43 6.93
Kodagu
2.92
Mysuru
6.92
Map Description: Chamarajanagara
"This map shows Percentage of Pasture to Geographical Area" 3.99
Formula: Pasture/GeographicalArea *100

Generated from : K-GIS,KSRSAC

Karnataka Economic Survey 2022-23

 APPENDIX 6.1
LAND UTILIZATION 2020-21 (Area in Hectares)
214

Area

Si. no
Forest

District
Barren &
Fallow Land

% of Barren &
Net area sown

graphical Area
Pasture to Geo
Trees & Groves

% of Permanent

Cultivable waste
Permanent Pasture

% of Forest Area to
Geo graphical Area
Geo graphical Area
Geo-graphical Area

Geo-graphical Area
Geo Graphical Area
Geo Graphical Area
% of Fallow Land to

Uncultivatable Land
% Land utilization to

% of Trees & Groves

% of Non Agricultural
% of Cultivable waste

Non Agricultural uses

to Geo graphical Area
% of Net area sown to

to Geo Graphical Area

uses to Geo Graphical

Uncultivatable Land to
1 Belagavi 1344382 190424 14.2 70791 5.3 32309 2.4 9465 0.7 21360 1.59 2306 0.2 20364 1.5 997363 74.2 100
2 Bagalkot 658877 81126 12.3 29853 4.5 23810 3.6 2035 0.3 3429 0.52 274 0.0 11277 1.7 507073 77.0 100

Karnataka Economic Survey 2022-23

3 Vijayapura 1053471 1977 0.2 36535 3.5 29059 2.8 5502 0.5 9575 0.91 1318 0.1 35005 3.3 934500 88.7 100
4 Kalburgi 1094120 35316 3.2 41511 3.8 35113 3.2 9417 0.9 25855 2.36 1131 0.1 55980 5.1 889797 81.3 100
5 Bidar 541765 27707 5.1 25374 4.7 19127 3.5 19381 3.6 13964 2.58 10933 2.0 40143 7.4 385136 71.1 100
6 Raichur 835843 18167 2.2 20768 2.5 20084 2.4 20084 2.4 19816 2.37 6409 0.8 60778 7.3 669737 80.1 100
Agriculture and Food Management

7 Koppal 552495 29451 5.3 50383 9.1 23635 4.3 2568 0.5 17842 3.23 210 0.0 8659 1.6 419747 76.0 100
8 Gadag 465715 32614 7.0 11368 2.4 12024 2.6 640 0.1 2598 0.56 356 0.1 12922 2.8 393193 84.4 100
9 Dharwad 427329 35235 8.2 25861 6.1 3985 0.9 2669 0.6 3571 0.84 188 0.0 11755 2.8 344065 80.5 100
10 Uttara Kannada 1024679 813595 79.4 34713 3.4 16196 1.6 6450 0.6 6730 0.66 1601 0.2 20739 2.0 124655 12.2 100
11 Haveri 485156 47454 9.8 33515 6.9 5793 1.2 2989 0.6 12209 2.52 2295 0.5 4422 0.9 376479 77.6 100
12 Ballari 400043 31885 8.0 48594 12.1 29567 7.4 7569 1.9 389 0.1 517 0.1 30099 7.5 251423 62.8 100
13 Chitradurga 770702 73719 9.6 55506 7.2 25403 3.3 21612 2.8 88740 11.51 11328 1.5 45509 5.9 448885 58.2 100
14 Davanagere 454573 67688 14.9 28742 6.3 6340 1.4 5254 1.2 11025 2.43 3773 0.8 2259 0.5 329492 72.5 100
15 Shivamogga 847784 276855 32.7 88708 10.5 13312 1.6 16311 1.9 163463 19.28 26868 3.2 13561 1.6 248706 29.3 100
16 Udupi 356446 100102 28.1 43708 12.3 11464 3.2 30258 8.5 10618 2.98 38566 10.8 12297 3.4 109433 30.7 100
17 Chikkamagaluru 722075 202028 28.0 43638 6.0 28322 3.9 19322 2.7 83837 11.61 19513 2.7 17430 2.4 307985 42.7 100
18 Tumakuru 1064755 45177 4.2 90416 8.5 67539 6.3 62642 5.9 76453 7.18 21957 2.1 120398 11.3 580173 54.5 100
19 Kolara 374966 20620 5.5 49500 13.2 28870 7.7 6397 1.7 36575 9.75 7009 1.9 15626 4.2 210369 56.1 100
20 Bengaluru (Urban) 217410 5055 2.3 125426 57.7 5778 2.7 5645 2.6 6806 3.13 4615 2.1 27190 12.5 36895 17.0 100
21 Bengaluru (Rural) 229519 11322 4.9 47082 20.5 11124 4.8 3898 1.7 3879 1.69 589 0.3 23316 10.2 128309 55.9 100
22 Mandya 498244 24765 5.0 64762 13.0 21519 4.3 41955 8.4 32049 6.43 3887 0.8 17878 3.6 291429 58.5 100
23 Hassan 662602 58775 8.9 80679 12.2 30365 4.6 14142 2.1 32943 4.97 6963 1.1 22033 3.3 416702 62.9 100
24 Dakshina Kannada 477381 128476 26.9 77355 16.2 35886 7.5 17860 3.7 8069 1.69 14612 3.1 4988 1.0 190135 39.8 100
25 Kodagu 410775 134597 32.8 24299 5.9 24250 5.9 7458 1.8 12009 2.92 3011 0.7 4889 1.2 200262 48.8 100
26 Mysuru 676382 62851 9.3 75279 11.1 47871 7.1 21407 3.2 46808 6.92 6591 1.0 37223 5.5 378352 55.9 100
27 Chamarajanagara 569901 275610 48.4 24646 4.3 21434 3.8 7637 1.3 22750 3.99 4741 0.8 34460 6.0 178623 31.3 100
28 Chikkaballapura 404501 49704 12.3 32743 8.1 34302 8.5 4743 1.2 55550 13.73 6482 1.6 19361 4.8 201616 49.8 100
29 Ramanagara 355912 69946 19.7 29675 8.3 24339 6.8 1178 0.3 24662 6.93 2288 0.6 30487 8.6 173337 48.7 100
30 Yadgir 516088 33773 6.5 31333 6.1 27788 5.4 2385 0.5 11755 2.28 772 0.1 12447 2.4 395835 76.7 100
31 Vijayanagara 556177 87362 15.7 73036 13.1 26484 4.8 13910 2.5 6486 1.17 1166 0.2 14139 2.5 333594 60.0 100
State total 19050068 3073376 16.1 1515799 8.0 743092 3.9 392783 2.1 871815 4.58 212269 1.1 787634 4.1 11453300 60.1 100
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APPENDIX 6.2

The final estimates of Area and Yield details of 2020-21 under Major crops in 15 districts is as
follows: (Area in Ha. & Yield in Kgs/Ha.)

CROP: PADDY CROP:JOWAR

SL. NO DISTRICT AREA YIELD SL. NO DISTRICT AREA YIELD
1 UTTARA KANNADA 47960 3222 1 VIJAYAPURA 51493 730
2 HAVERI 44265 3437 2 GADAG 56660 740
3 HASSAN 40395 3753 3 DHARWAD 44097 798
4 KALBURGI 15650 3942 4 HAVERI 79366 908
5 KODAGU 21769 3963 5 KOPPAL 28830 908
6 BELAGAVI 61969 4115 6 BIDAR 39544 1025
7 SHIVAMOGGA 90017 4166 7 YADGIR 21716 1148
8 UDUPI 41001 4304 8 KALBURGI 80115 1262
9 YADGIR 146043 4505 9 CHITRADURGA 9220 1313
10 MYSURU 88869 4530 10 BELAGAVI 158496 1321
11 MANDYA 73957 4725 11 RAICHUR 52629 1324
12 RAICHUR 353280 4891 12 CHAMARAJANAGAR 10370 1354
13 DAVANAGERE 128626 5284 13 BAGALKOTE 62947 1448
14 KOPPAL 104004 5737 14 TUMAKURU 10095 1923
15 BALLARI 182103 6074 15 BALLARI 25867 2732
STATE TOTAL 1514291 4766 STATE TOTAL 764844 1206
CROP: RAGI CROP: MAIZE
SL. NO DISTRICT AREA YIELD SL. NO DISTRICT AREA YIELD
1 HASSAN 78463 1065 1 GADAG 92185 2195
2 CHIKMAGALUR 51830 1229 2 KOPPAL 95278 2979
3 BELAGAVI 1740 1330 3 DHARWAD 65408 3242
4 DAVANAGERE 12386 1375 4 HAVERI 227617 3350
5 BALLARI 24051 1550 5 VIJAYAPURA 80703 3429
6 CHITRADURGA 49893 1572 6 CHICKBALLAPUR 56280 3730
7 TUMAKURU 165595 1631 7 CHAMARAJANAGAR 38822 3740
8 MANDYA 72918 1639 8 DAVANAGERE 142145 3775
9 MYSURU 77543 1647 9 HASSAN 124959 3811
10 CHAMARAJANAGAR 9187 1784 10 MYSURU 50615 3868
11 BENGALURU - R 57135 2198 11 CHITRADURGA 116954 3922
12 KOLAR 66738 2208 12 BALLARI 194495 3942
13 RAMANAGARAM 69420 2234 13 SHIVAMOGGA 66879 4317
14 CHICKBALLAPUR 44020 2418 14 BAGALKOTE 80915 4328
15 BENGALURU URBAN 17729 2442 15 BELAGAVI 230742 4353
STATE TOTAL 800676 1745 STATE TOTAL 1762258 3689

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CROP: WHEAT CROP:TUR

SL.NO DISTRICT AREA YIELD SL.NO DISTRICT AREA YIELD
1 KOPPAL 1238 499 1 TUMAKURU 14345 404
2 HAVERI 390 504 2 BELAGAVI 14747 423
3 DHARWAD 22766 561 3 VIJAYAPURA 524850 433
4 RAICHUR 142 625 4 KOPPAL 34588 508
5 GADAG 16603 671 5 MYSURU 3355 606
6 VIJAYAPURA 46410 911 6 CHITRADURGA 4983 651
7 YADGIR 206 962 7 KOLAR 1258 658
8 BALLARI 115 1025 8 RAICHUR 156218 708
9 BIDAR 8223 1126 9 CHICKBALLAPUR 3548 717
10 DAVANAGERE 193 1292 10 RAMANAGARAM 1780 722
11 CHAMARAJANAGAR 25 1292 11 BALLARI 14185 747
12 CHITRADURGA 379 1533 12 BIDAR 142503 774
13 BELAGAVI 65420 1552 13 YADGIR 95652 829
14 KALBURGI 13081 1871 14 BAGALKOTE 53033 877
15 BAGALKOTE 32048 2001 15 KALBURGI 593699 1070
STATE TOTAL 207290 1292 STATE TOTAL 1664122 759
CROP: BENGAL GRAM CROP: GROUNDNUT
SL.NO DISTRICT AREA YIELD SL.NO DISTRICT AREA YIELD
1 GADAG 124943 444 1 GADAG 56546 603
2 KOPPAL 63753 469 2 VIJAYAPURA 32437 763
3 DAVANAGERE 6758 476 3 TUMAKURU 87926 808
4 DHARWAD 102785 524 4 CHITRADURGA 171071 849
5 HAVERI 3726 588 5 RAICHUR 15059 907
6 BIDAR 68944 616 6 KOPPAL 44918 952
7 VIJAYAPURA 58265 616 7 CHICKBALLAPUR 36388 987
8 CHITRADURGA 37100 652 8 DHARWAD 31731 1005
9 RAICHUR 35822 654 9 BELAGAVI 34407 1102
10 BALLARI 14351 710 10 KOLAR 11782 1139
11 BELAGAVI 113535 729 11 HAVERI 34131 1176
12 CHAMARAJANAGAR 2991 776 12 BALLARI 75665 1333
13 CHIKMAGALUR 6878 827 13 BAGALKOTE 47639 1378
14 BAGALKOTE 47301 873 14 DAVANAGERE 12778 1380
15 KALBURGI 36052 1083 15 YADGIR 23449 1406
STATE TOTAL 727758 625 STATE TOTAL 734620 1000

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CROP: SUNFLOWER

Sl. No. District Area Yield

1 Gadag 21017 483

2 Dharwad 4493 498

3 Kalburgi 5138 656

4 Koppal 12297 812

5 Raichur 7776 914

6 Chitradurga 1664 917

7 Yadgir 675 918

8 Vijayapura 7467 928

9 Belagavi 17562 931

10 Bagalkote 20683 981

11 Chamarajanagar 5487 1035

12 Ballari 6354 1078

13 Davanagere 796 1196

14 Haveri 9337 1435

15 Shivamogga 1522 2777

State Total 123330 895

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APPENDIX 6.3

District wise percentage of Cultivable waste to Geo-graphical Area (Area in Hectares)

% of Cultivable
Si.
District Geo-graphical Area Cultivable waste waste to Geo
No
Graphical Area
1 Udupi 356446 30258 8.49
2 Mandya 498244 41955 8.42
3 Tumakuru 1064755 62642 5.88
4 Dakshina Kannada 477381 17860 3.74
5 Bidar 541765 19381 3.58
6 Mysuru 676382 21407 3.16
7 Chitradurga 770702 21612 2.80
8 Chikkamagaluru 722075 19322 2.68
9 Bengaluru (Urban) 217410 5645 2.60
10 Vijayanagara 556177 13910 2.50
11 Raichur 835843 20084 2.40
12 Hassan 662602 14142 2.13
13 Shivamogga 847784 16311 1.92
14 Ballari 400043 7569 1.89
15 Kodagu 410775 7458 1.82
16 Kolara 374966 6397 1.71
17 Bengaluru (Rural) 229519 3898 1.70
18 Chamarajanagara 569901 7637 1.34
19 Chikkaballapura 404501 4743 1.17
20 Davanagere 454573 5254 1.16
21 Kalburgi 1094120 9417 0.86
22 Belagavi 1344382 9465 0.70
23 Uttara Kannada 1024679 6450 0.63
24 Dharwad 427329 2669 0.62
25 Haveri 485156 2989 0.62
26 Vijayapura 1053471 5502 0.52
27 Koppal 552495 2568 0.46
28 Yadgir 516088 2385 0.46
29 Ramanagara 355912 1178 0.33
30 Bagalkot 658877 2035 0.31
31 Gadag 465715 640 0.14
State total 19050068 392783 2.06

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APPENDIX 6.4
District wise percentage of Area to be brought under Integrated farming and multiple
cropping (Area in Hectares)
Percentage
Potential area
of area for
Sl. Net area Area cultivated for integrated
District integrated
No. cultivated More than Once farming and
farming to the
multi cropping
total net area
1 2 3 4 5 6
1 Dakshina Kannada 190135 5500 184635 97.11
2 Ramanagara 173337 8883 164454 94.88
3 Bengaluru (Rural) 128309 8170 120139 93.63
4 Chikkaballapura 201616 24432 177184 87.88
5 Chamarajanagara 178623 24115 154508 86.50
6 Tumakuru 580173 84935 495238 85.36
7 Kolara 210369 33776 176593 83.94
8 Vijayapura 934500 155628 778872 83.35
9 Kalburgi 889797 164113 725684 81.56
10 Mandya 291429 65474 225955 77.53
11 Vijayanagara 333594 75249 258345 77.44
12 Yadgir 395835 95456 300379 75.88
13 Bengaluru (Urban) 36895 9527 27368 74.18
14 Uttara Kannada 124655 32587 92068 73.86
15 Davanagere 329492 91577 237915 72.21
16 Ballari 251423 70496 180927 71.96
17 Raichur 669737 190835 478902 71.51
18 Chitradurga 448885 128752 320133 71.32
19 Hassan 416702 123530 293172 70.36
20 Shivamogga 248706 79439 169267 68.06
21 Bagalkot 507073 169229 337844 66.63
22 Koppal 419747 144076 275671 65.68
23 Chikkamagaluru 307985 114254 193731 62.90
24 Mysuru 378352 150350 228002 60.26
25 Udupi 109433 43681 65752 60.08
26 Bidar 385136 167673 217463 56.46
27 Haveri 376479 170094 206385 54.82
28 Belagavi 997363 470349 527014 52.84
29 Gadag 393193 210928 182265 46.36
30 Dharwad 344065 212287 131778 38.30
31 Kodagu 200262 130805 69457 34.68
State Total 11453300 3456200 7997100 69.82

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APPENDIX 6.5

District wise Potential area for Irrigation (In hectares)

Si. Net area Potential area for

District Net Area Irrigated
no cultivated Irrigation
1 2 3 4 5
1 Kalburgi 889797 137222 752575
2 Vijayapura 934500 412762 521738
3 Belagavi 997363 649353 348010
4 Bidar 385136 39005 346131
5 Tumakuru 580173 243350 336823
6 Chitradurga 448885 121773 327112
7 Gadag 393193 100088 293105
8 Dharwad 344065 67802 276263
9 Hassan 416702 148611 268091
10 Raichur 669737 405847 263890
11 Koppal 419747 162470 257277
12 Vijayanagara 333594 87563 246031
13 Haveri 376479 139570 236909
14 Chikkamagaluru 307985 93612 214373
15 Mysuru 378352 170864 207488
16 Kodagu 200262 1967 198295
17 Yadgir 395835 229437 166398
18 Kolara 210369 55556 154813
19 Chikkaballapura 201616 51755 149861
20 Bagalkot 507073 361253 145820
21 Ramanagara 173337 41477 131860
22 Bengaluru (Rural) 128309 28798 99511
23 Shivamogga 248706 156666 92040
24 Davanagere 329492 240728 88764
25 Chamarajanagara 178623 98189 80434
26 Ballari 251423 177183 74240
27 Mandya 291429 219986 71443
28 Uttara Kannada 124655 61039 63616
29 Udupi 109433 52182 57251
30 Dakshina Kannada 190135 159026 31109
31 Bengaluru (Urban) 36895 15685 21210
State total 11453300 4930819 6522481

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APPENDIX 6.6

District wise cattle population as per 2019 cattle census and land available under permanent
Pasture (per capita availability of land)

Sl. Total Cattle Permanent Pasture Per capita availability

District
No. Population (In hectares) of pasture (ha)
1 2 3 5 8
1 Ballari 770780 389 0.001
2 Bagalkot 1463945 3429 0.002
3 Gadag 779664 2598 0.003
4 Vijayanagara 1302662 6486 0.005
5 Vijayapura 1295358 9575 0.007
6 Belagavi 2853131 21360 0.007
7 Dharwad 387402 3571 0.009
8 Bengaluru (Rural) 401590 3879 0.010
9 Yadgir 984714 11755 0.012
10 Haveri 804735 12209 0.015
11 Raichur 1298145 19816 0.015
12 Uttara Kannada 429497 6730 0.016
13 Koppal 1092825 17842 0.016
14 Davanagere 647493 11025 0.017
15 Bengaluru (Urban) 310366 6806 0.022
16 Bidar 567946 13964 0.025
17 Kalburgi 1017343 25855 0.025
18 Mandya 1172992 32049 0.027
19 Dakshina Kannada 284905 8069 0.028
20 Tumakuru 2291232 76453 0.033
21 Hassan 984601 32943 0.033
22 Udupi 260291 10618 0.041
23 Ramanagara 585264 24662 0.042
24 Chamarajanagara 539233 22750 0.042
25 Chitradurga 2076052 88740 0.043
26 Kolara 813767 36575 0.045
27 Mysuru 925949 46808 0.051
28 Chikkaballapura 1041797 55550 0.053
29 Kodagu 85173 12009 0.141
30 Chikkamagaluru 463371 83837 0.181
31 Shivamogga 741461 163463 0.220
State total 28673684 871815 0.03

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 7
NATURAL RESOURCE CHA PT E R

MANAGEMENT AND
ENVIRONMENT

7.1 FOREST

7.1.1 Forest cover

The state has set a goal of greening the vacant waste lands, institutional waste lands,
urban spaces, agricultural waste lands, sopping betta lands, rivet catchment areas, and
Assessed waste lands without tree growth and tank foreshore areas with appropriate
tree species through participatory approach involving local bodies and Village forest
committees to achieve the target of 33% of green cover by 2030. State has formulated
afforestation programs like Krishi Protsaha planting, Trees outside forests, Nagarvanas in
addition to Central schemes.

Performance of Karnataka VS India for SDG15 - Life on Land

Arunachal
Indicators/States MP Odisha Karnataka India Target
Pradesh
Forest cover as a Percentage
79.63 25.14 33.15 20.11 21.67 Null
of total geographical area
Tree cover as a Percentage of
1.01 2.71 2.98 3.26 2.89 Null
total geographical area
Forest cover + Tree cover of
80.64 27.85 36.13 23.37 24.56 33
total geographical area
Number of cases under
Wildlife Protection Act
4 20 4 2 15 0
(1972) per million hectares of
protected area
Percentage increase in area of
12.62 0.86 -0.33 0.14 1.98 0
desertification
Percentage of area covered 0.32
under afforestation schemes Null Null 2.46 0.51 2.74
to the total geographical area (12)

Percentage of degraded land

11.74 19.17 38.32 27.48 27.77 5.46
over total land area
Score (Rank) 93 (1) 84 (2) 83 (3) 67 (11) 66 100

Source : SDG India Index - 2020, NITI Aayog

It is estimated that around 25% of the Forest area is under various stages of degradation
due to biotic and anthropogenic pressures (FSI report). Under the SDG goal it is envisaged
to undertake regeneration works under different ecosystems to restore the original
structure and functions. Some of the strategies are:

oo Increase in forest tree cover in degraded area

oo Increase in forest/vegetation cover in mountain area
oo Restoration of water bodies
 Natural Resource Management and Environment
224

oo Conservation of local wild life species.

oo Restoration of red list of wild animals.
oo Biodiversity conservation-access to benefit sharing agreements, recovery of RET
species.
oo Reduction in traded wildlife that was poached or illicitly trafficked-Alien species
eradication.
Agro-forestry: Tree planting in all vacant private and farmlands that are unfit for
productive agriculture; Promote dry land horticulture, mulberry; Soil and water
conservation; Biodiversity conservation.

Forest: Restoration of disturbed forests and plantations; Increasing focus in farm forestry
in order to reduce pressure on natural forest.

Forests are an integral part of natural resources and an integral part of environmental
and ecological systems. The state’s dense forests are located in the Western Ghats
region. About 60% of the Western Ghats of the country are located in the state. In order to
protect and develop bio-diversity, the state has formed 6,554 Bio-diversity management
committees. Bio-diversity heritage sites (such as the 400-year-old tamarind grove at
Nallur, Devanahalli taluk) have been developed to conserve and develop unique genetic
diversities.

The vision of the forest department is to conserve, manage and develop forests and tree
growth on a sustainable basis for the present and future generations. It envisages to
achieve the goal to increase tree cover to one third of the geographical area of the State
in consonance with the National Forest Policy, 1988. The Karnataka Forest Department
is protecting its forests by implementation of laws and regulations pertaining to forest
and wildlife.

The contribution of Forest and Loggings sector to the overall GSDP is 0.98 % at current
prices (increased from 0.69% to 0.98%). Forest resources significantly contribute to the
State’s Gross Domestic Product (GSDP) by being a major source of timber, medicinal
plants, Minor Forest Products, grazing, recreational activities, carbon sequestration,
watershed provisions etc,. Forest resources are under severe pressure due to rapid
population growth and in this scenario, meeting developmental, livelihood, agricultural
and industrial needs while conserving forests for productive and ecological services is
a major challenge. The main factors responsible for the depletion of the forest resource
base are:

oo Diversion of forest areas for developmental activities.

oo Encroachment of forest area, destruction of natural habitat, mining and quarrying,
wildlife poaching, smuggling of timber, erosion of common property resources,
excessive fuel wood collection, livestock grazing etc,.
7.1.2 Area under forest

Karnataka is the seventh-largest state in the country, with a geographical area of 1,91,791
sq.km, accounts for 5.83% of the Geographical Area of the country. The state is endowed
with a diverse climate, topography and soils, which have resulted in rich bio-diversity. The

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225

diverse ecological niches support characteristic flora and fauna. The evergreen forests of
the Western Ghats, which cover about 60% of the forest area of the state, are recognized
as one of the 35 bio-diversity hotspots in the world and one of the four biodiversity
hotspots in India. The detail of the classification of the total forest area in Karnataka is
presented in Table 7.1.

Table 7.1: Details of classification of total Forest Area in Karnataka

Sl.No. Classification Area (in sq.km) % of Geographical Area

1 Reserved Forest 30,817.88 16.07
2 Protected Forest 1,970.66 1.03
3 Village Forest 86.15 0.04
4 Private Forest 52.16 0.03
5 Notified forest u/s-4 of KFA 1963 2,321.21 1.21
6 Deemed Forest 3,301.86 1.72
7 Forest as per Statutory Provisions 1,728.14 0.90
8 Unclassified Forest 5,638.65** 2.93
Total 45916.71 23.93
Source: Additional Principal Chief Conservator of Forest, Working Plan
**The Reconciliation of Forest Area is under progress using GSFIS data.

7.1.3 Recorded Forest area within forest and non-forest areas (As per Annual Report
of Karnataka Forest Department 2021-22)
The state has reported that the extent of the Recorded Forest Area (RFA) is 43,557.71
sq.km, which constitutes 22.71% of Geographical Area. The Reserved, Protected and
unclassified forests account for 16.07%, 1.03% and 2.94% of the recorded forest area in the
state respectively. However, as the digitized boundary of the recorded forest area in the
state covers 43,557.71 sq.km. In Karnataka, during the period from 01.01.2021 to 31.12.2021,
a total of 679.30 hectares of forest land was diverted for various non-forestry purposes
under the Forest Conservation Act, 1980 (MoEF & CC, 2021-22). During 2021-22, total of
32,964.18 ha of plantations were raised in the state.

7.1.4 Forest Cover Inside and Outside Recorded Forest Area (or Green Wash)
As per the Indian State of Forest Report (ISFR)-2021, the analysis of forest cover inside and
outside Recorded Forest Area (RFA) is presented in Table 7.2 and Figure 7.1.
Table 7.2 : Forest Cover Inside and Outside Recorded Forest Area (or Green Wash) in Karnataka
(in sq.km)

Forest Cover Inside the Recorded Forest Forest Cover Outside the Recorded Forest
Area (or Green Wash) Area (or Green Wash)
VDF MDF OF Total VDF MDF OF Total
3,679 12,721 6,148 854 8,264 7,064
22,548 16,182
16.32% 56.41% 22.27% 5.28% 51.07% 43.65%
Source: India State of Forest Report (ISFR) -2021

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Figure 7.1: Forest cover inside and outside RFA in Karnataka

14,000 60.00%
Forest Cover Inside the
Recorded Forest Area (or
56.41% Green Wash) Area (in
12,721
sq.km)

12,000 Forest Cover Outside the

51.07% Recorded Forest Area (or
50.00%
Green Wash) Area (in
sq.km)

Forest Cover Outside the

43.65% Recorded Forest Area (or
10,000 Green Wash)
Percentage
40.00%

8,264

8,000

7,064
30.00%

6,148
6,000

22.27%
20.00%

4,000 3,679
16.32%

10.00%
2,000
5.28%
854

0 0.00%
VDF MDF OF

7.1.5 Forest cover as per India State of Forest Report (ISFR) - 2021

The Forest Cover has been mapped into three density classes, viz., Very Dense Forest
(VDF), Moderately Dense Forest (MDF) and Open Forest (OF). Scrub areas, though not
part of the forest cover have also been mapped. The estimation of forest cover prepared
by ISFR, classified on the basis of forest cover density, shows that the state has 4,533
sq.km of Very Dense Forest, 20,985 sq.km of Moderately Dense Forest and 13,212 sq.km of
Open Forest.

Total Forest Cover in Karnataka is 20.19% constituting forest area of 38,729.99 sq.km.
Appendix 7.1 and Table 7.3 shows that District-wise forest cover, Geographical area and
forest cover according to the India State of Forest Report (ISFR)-2021.

Table 7.3 : Forest cover as per India State of Forest Report (ISFR)-20 (Area in sq.km)

Sl. Year wise Forest cover

Forest Class
No. 2013 2015 2017 2019 2021
Karnataka’s Forest Cover

1 Very Dense Forest + 21,956 21,844 24,946 25,549 25,518

Mod. Dense Forest

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Sl. Year wise Forest cover

Forest Class
No. 2013 2015 2017 2019 2021
2 Open Forest 14,238 14,577 12,604 13,026 13,212

Total 36,194 36,421 37,550 38,575 38,730

3 India’s Forest cover 6,97,898 7,01,673 7,08,273 7,12,249 7,13,789

4 Percentage forest cover 5.18 5.19 5.30 5.41 5.42

of state vis-a vis India

Source: India State of Forest Report (ISFR)-2021

7.1.6 (A) Developmental Programs Afforestation

Afforestation works are being carried out from time to time. By the end of November
2022, 282.83 lakh saplings have been planted in an area of 47,077 hectares by carrying
out afforestation works. Under agroforestry, 315.34 lakh saplings have been distributed to
farmers and public for planting in their private lands.

Every year, the Karnataka State is promoting planting of 200 to 300 lakh seedlings on
private lands through various schemes like Krishi Aranya Prothsaha Yojane (KAPY),
MGNREGA, SMAF, etc., and thereby the tree cover outside forest has increased, as evident
from the India State of Forest Report (ISFR) 2021 published by Forest Survey of India.
There has been increase of Forest and Tree cover in the State as shown in Table 7.4.

However, the contribution of the Forest from indirect benefits far outweigh the tangible
benefits seen from forest produce, viz. Timber, Firewood, Bamboo, Cane, Grass, Minor
forest produce etc. The indirect benefits of the ecosystem services in the form of Bio-
diversity conservation, watershed functions in terms of control of soil erosion and for
ensuring flow of rivers and supporting more than a crore local people dependent on the
State’s forest for fuel wood, fodder, Minor forest produce and other needs, apart from
eco-tourism benefits need to be valued comprehensively, whereby the contribution of
the forestry sector to the country and the globe could be better appreciated.

Table 7.4: Forest and Tree cover in the State

Total Growing Stock (million cum)

Forest Tree
Cover Forest In
Cover In Trees
Year & Trees recorded Remarks
(Area in (Area in Outside Total
Cover Forest
Km2) Km2) Forest
(Km2) area
36,449 5,552 41,973
2015 296.990 86.590 383.580
(19.00%) (2.89%) (21.89%)
37,550 5,713 43,263
2017 (19.58%) (2.98%) (22.56%) 327.660 89.585 417.245 +33.665
(+1101) (+161) (+1262)

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Total Growing Stock (million cum)

Forest Tree
Cover Forest In
Cover In Trees
Year & Trees recorded Remarks
(Area in (Area in Outside Total
Cover Forest
Km2) Km2) Forest
(Km2) area
38,575 6,257 44,832 334.08 103.030
2019 (20.11%) (3.26%) (23.37%) (87.26 (7.05 437.110 +19.865
(+1025) (+544) (+1569) cum/ha) cum/ha)

38,730 7,494 46,224

302.14 121.72
2021 (20.19%) (3.91%) (24.10%) 423.86 -13.250
(-31.94) (+18.69)
(+155) (+1237) (+1392)

Source: Karnataka $1trillion GDP Vision Working Group Recommendations

(B) Comparison with southern states

As per India State of Forest Report (ISFR)-2021, forest cover in Karnataka is 20.19% of
the total geographical area of the state. In the southern states, Kerala has the highest
proportion of forest cover, accounting for 54.70% of total area. The comparison statement
with neighbouring states is presented in Figure 7.2.

Figure 7.2: Details of Geographical Area with Southern States

35,00,000 60
32,87,469
54.7
30,00,000
50

25,00,000
40

20,00,000

30

15,00,000
20.19 20.31 19.95
18.28 21.71
16.51 20
18.93 9,43,461
10,00,000
7,13,789

10
5,00,000
3,07,713
1,91,791 1,62,968 1,88,198
1,12,077 1,30,060
38,730 29,784 21,214 38,852 21,253 50,798 26,419
0 0
Karnataka Andhra Telangana Kerala Maharashtra Tamil nadu Southern India
Pradesh states (Total)

Geographical Area (sq.km) Total Forest Cover (sq.km) % to Geographical area

(C) Forest cover in different forest types

The forest vegetation is classified into seven types based on gradients of rainfall, length
of the dry season and temperature etc., About 4.19 % of forests are wet evergreen, 4 % are
semi-evergreen, 3.56 % are moist deciduous and 3.66 % are dry deciduous. Thorn forests
form 3.09 % of the total, plantations form 3.26 %, and broad-leaved hill forests form 2.53 %.

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(D) Forest and Tree cover

As per India State of Forest Report (ISFR)-2021, forest cover is 20.19% (38,730 sq.km) and
the tree cover is 3.91% (7,494 sq.km) of the geographical area, totaling 24.10 % (46,224
sq.km). Tree Cover includes trees in all formation including scattered trees.

7.1.7 National Parks and Wildlife Sanctuaries

The forest of Karnataka supports a wide range of flora and fauna (bio-diversity) through
a network of well-connected and protected wildlife sanctuaries and national parks.
The state has 5 National parks and 40 Wildlife Sanctuaries (including 5 Tiger Reserves)
covering an area of 10,827.41 sq.km. Apart from the National Parks and Sanctuaries, the
state has 18 Conservation Reserves and 1 Community Reserve, comprising 304.71 sq.km.

7.1.8 Eco-Tourism Activities

(A) Information of visitors to National Parks/Wildlife Sanctuaries
1. Among the visitors to the sanctuaries, 99.97% are Indians and 0.03% are foreigners.
2. Some of the protected areas are experiencing high pressure from eco-tourism while
others are underutilized. Therefore, to reduce the pressure on the protected areas like
Bandipura, Nagarahole and Kudremukh, it is necessary that the less visited protected
areas like BRT, Bhadra, Dandeli and some other protected areas be provided with
better eco-tourism facilities infrastructure. Their potential may also be given more
publicity. Once they become popular, they may also have more tourists. This will help
in sensitizing the people and also creating awareness about wildlife conservation in
the state.
(B) Death of wild animals
The State has 25% of the country’s elephant population. As per the 2017 population
estimation, there are 6,049 elephants in the state. The state has five Tiger Reserves. As
per all India Tiger Estimation conducted during 2017. Karnataka’s Tiger Population is
estimated at 524 and Karnataka has the second highest tiger population in the country.

During 2022-23 upto end of November 2022, due to attack by wildlife’s, 28 people were
killed. Ex-gratia of Rs.7.50 lakh per person was paid to the victims, totaling Rs.210.00 lakh.

(C) Expenditure on wildlife development activities in National parks and wild life
sanctuaries
Among the schemes of the Forest Department concerning wildlife and national parks,
Mitigation Measures to mitigate Man-Animal Conflict incurred an expenditure of 99.97%,
Project Tiger 99%, Integrated Development of Wildlife Habitats 100%, Project Elephant
99%, and national parks during 2021–22. In 2022-23 up to November 2022, Rs.11406.02
lakh has been spent on wildlife sanctuaries.

(D) Revenue Realized from Forestry

The sale of Timber and other forest produce in all the Government Timber Depots which
forms a major source of revenue is disposed off by e-auction. The State has realized
revenue to the tune of Rs.18,648.91 lakh during 2022-23 (upto November 2022) from the

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marketing of forest products such as timber, firewood, sandalwood, bamboos, canes and
other minor forest products. Details are given in the Table 7.5. Allocations and progress
for the year 2022-23 as per Avalokana is as shown in Appendix 7.2.

Table 7.5 : Revenue Realized from Forest Produce-2022-23

Revenue Realized
Sl.No. Forest Produce
(Rs. in lakh)
1 Timber 9,545.10
2 Firewood and Charcoal 2,951.43
3 Bamboos 16.91
4 Receipts from Sandalwood 228.30
5 Minor Forest Produce 261.06
6 Other Sources of Revenue 5,646.11
Non-taxable Revenue of the Department 18,648.91
Forest Development Tax(FDT) Collections 886.85

Source: APCCF(FRM), Upto November-2022

7.1.9 Revenue and Expenditure

The Forest Resource Management (FRM) wing of Karnataka is primarily responsible for
the management of forests from the point of production as well as overall protection.
Revenue is realized by the sale of forest products such as timber, firewood, bamboo,
sandalwood and minor forest products as well as revenue realized from sanctuaries and
other miscellaneous revenue items. The expenditure includes the establishment cost
as well as the cost of afforestation and other departmental programmes. The detail of
Revenue and Expenditure of the last five years is as shown in Table 7.6.
Table 7.6 : Revenue and Expenditure from Forest Department (Rs.in crore)

Year Revenue Expenditure

2018-19 280.11 1536.22
2019-20 245.34 1759.78
2020-21 255.36 1774.63
2021-22 288.86 1313.19
2022-23* 203.95 1023.65
Source: Annual Reports of Karnataka Forest Department, * Upto November-2022

7.1.10 Future growth plan of the revenue from the sub-sector (next 5 and 10 years)

The Department has planned to promote Production Forestry of valuable hardwood

species, which needs longer duration 30 to 50 years and more for the rotation of such
trees to be realized.

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There are more than a lakh ha. of mature teak plantations raised 50 to 100 years ago
and many of such plantations, which are not situated in ecologically fragile areas or in
steep slopes, are planned to be extracted to provide the valuable timber for construction
etc, which would unlock the value and save precious foreign exchange, presently going
for import of large volume of timber species. Projected Revenue realized from forest
department for the year 2022-23 is Rs.300.00 crore and this revenue will be increased
upto Rs.1000.00 crore in next ten years.

7.1.11 Key drivers to achieve the projected growth

1. Production Forestry of valuable hardwood species in the forest land @ 5000 Ha. per
year.
2. Simplification and relaxation of existing regulations to promote agro-forestry with
planting of short rotation species, like Silver Oak, Melia dubia, Acacia auriculiformis
and other species, like Sandal, Neem, Teak and Red sanders etc.
3. Encouraging Wood based Industries, dependent on farm-forestry wood.
Key Achievements

oo GoK already approved 2022 Sandalwood Promotion Policy, whereby Sandal trees
could be extracted as per need and traded in open market.
oo Policy changes are required to remove blanket ban on green-felling. Instead scientific
production forestry need to be practiced on @ 5 to 10 % of the forest land in the State,
endowed with suitable edaphic and climatic conditions.
oo GoK is already requested to amend the Rules related to sawmill definition and
excluding Wood Based Industries, like Plywood, MDF, Particle Board units to be
excluded from Sawmill definition and permitting then on a simpler framework, in
line with 2016 & 2017 GoI Regulations.
oo The area of sandalwood plantation and naturally grown sandalwood trees is protected
and maintained through the installation of chain link mesh, watch and ward, soil
working, cultural operations and other protective measures.
oo Plantation maintenance work has been done in an area of about 4000 km of national
highway, 21,000 km of state highway and 38,000 km of district roads under various
afforestation programmes.
oo With more emphasis on social forestry, indigenous species of trees will be extensively
planted on government lands around small hills, mangroves and lakes. In this regard,
it has been announced to implement the “Green Karnataka” program to grow a tree
for every house, a forest for a village, a small forest for each taluk and one forest for a
district, with the active involvement of school and college students and environmental
organizations.
oo During road widening on state and national highways, trees across the roads were
felled. For planting saplings in place of these trees, the utility companies like K-Ship,
KPTCL, KRDCL and other utility companies has to deposit the prescribed amount to
the account number 0406-01-800-0-08-000.

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oo The Devarakadu Forests are very unique and significant from religious and ecological
points of view. This scheme has been introduced to conserve the valuable eco-
systems in their pristine conditions as sacred groves, allowing them to have their
natural evolutionary process continue without any disturbance. This scheme has
been started to construct and develop one Daivivana in every district.
oo Smruthivana is honour of Sri Sri Sri.Shivakumara Swamiji at Tumakuru and Pejawara
Sri.Vishwesha Theertha Shripada at Udupi will be constructed with an expenditure of
Rs.2.00 crore each.
WAY FORWARD

oo Set-up of Wood based Industries dependent on farm-forestry wood to spur the

demand in the local market, provide employment opportunities and increase revenue
opportunities to the farmers.
oo Increase provision of eco-tourism facilities and publicity to less visited protected
areas like BRT, Bhadra, Dandeli, etc., while continue the strengthening of places like
Nagarhole, Bandipur, to develop eco-tourism activities. Eco-Tourism activities should
be scaled up to unlock the big source of employment opportunities.
oo Simplify regulatory frameworks to promote agro-forestry with planting of short
rotation species, like Silver Oak, Melia dubia, and other species, like Sandal, Neem,
Teak and Red sanders.
oo For promotion of Tree growth in private land, the Government has relaxed felling and
Transit regulations.
oo Comprehensive accounting of ecosystem services provided to society by forest areas
and Harvesting of medicinal plants in a scientific manner would generate huge
revenue to the Department.
oo Degraded forests are rejuvenated through afforestation, soil and water conservation
measures. Where there is adequate rootstock, such areas are protected from biotic
pressure, thereby encouraging natural regeneration. Alternatively, plantations are
raised in other areas based on the requirement for small timber, fuel wood, and
fodder.
oo To reduce the effects of pollution caused by the human beings, vehicles and industries
in urban areas by planting ornamental, shade-giving and fruit-bearing trees. Tree
parks, wood lots and avenue plantations are also established in towns and cities to
improve aesthetics ‘Greening of Urban Areas’ may be implemented.

7.1.12 Karnataka Bio-Diversity Board (KBB)

Karnataka is identified as one of the rich Bio-diversity areas of the country. Efforts are
required to protect and conserve these varied resources for the future by identifying,
documenting, creation of database and chalking out the programmes for conservation
of endangered species. This includes survey and documentation of biological resources
of the state, constitution of Bio-diversity Management Committee preparation of Peoples
Biodiversity Registers, conducting awareness on the bio diversity conservation and
imparting trainings. In 6012 Grama panchayats, Bio-diversity Management Committees

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(BMCs) have been constituted and all GPs have been written People’s Biodiversity
Registers (PBRs).

During 2022-23, an amount of Rs.3.24 crore has been provided for Protection of Bio-
diversity in the state, out of which Rs.1.65 crore released and Rs.1.63 crore spent upto end
of November 2022 to take up bio-diversity activities.

WAY FORWARD

1. Implementation of Biological Diversity Act 2002.

2. Reconstitution and Strengthening of Biodiversity Management Committees.
3. Updation of People’s Biodiversity Registers and E-PBR at different level of
administration blocks across the state.
4. Conducting Awareness Training Programmes on Biodiversity Act 2002.
5. Identification, Declaration and Conservation of Biodiversity Heritage Sites.
6. Research Projects and Special Studies on Biodiversity.
7. Other activities of the Board and Government towards Biodiversity conservation.
8. Enactment of Access and Benefit Sharing of Biological Resources and preparation of
standard of operation.

7.1.13 Coastal Regulation Zone Management (CRZM)

The coastal stretches up to 500 metres from the HTL towards the landward side all along
the sea coast, area up to 12 nautical miles in the sea, in case of river, creeks, bays, estuaries
and backwaters up to a point till the tidal influence is felt and the land on either side
of these tidally influenced water bodies up to a maximum of 50 metres is declared as
“Coastal Regulation Zone” as per the MoEF Notification 2019 vide No. G.S.R 37(E) dated
18.01.2019 in supersession of Notification No. S.O. 19 (E) dated 6th January 2011. The
coastal stretches so declared as CRZ is classified into 4 zones, viz., CRZ-I. CRZ-II, CRZ-
III and CRZ-IV based on the ecological sensitivity and the land use pattern. Norms for
regulation of activities in these zones and the institutional mechanism for enforcement
of the provisions of this notification have also been built in.

Karnataka State Coastal Zone Management Authority (KSCZMA) has been constituted
under the chairmanship of the Additional Chief Secretary to Government, Department
of Forest, Ecology and Environment for ensuring compliance to the provisions of CRZ
Notification.

Earlier, Karnataka State Coastal Zone Management Plan (CZMP) was prepared in
accordance with the provisions of CRZ Notification, 1991. Then a revised CZMP as per CRZ
Notification 2011 was approved by the MoEF & CC, GoI on 07.08.2018. To implement the
provisions of CRZ Notification, there was a requirement for preparation of Coastal Zone
Management Plan in accordance with the CRZ notification 2019.

The job of preparation of CZMP as per the provisions of CRZ Notification 2019 had been
entrusted to National Centre for Sustainable Coastal Management (NCSCM), Chennai

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on 11.11.2019. As mandated by MoEF & CC. NCSCM, Chennai had submitted a draft CZMP,
which had been published for obtaining comments/ suggestions / objections from the
Public and the Stakeholders by giving 60 days time on 27.04.2021. Due to enforcement
of lockdown in the State during this notified period, extension was given for further 60
days from 07.08.2021. Public Hearing had been held at the District level namely Dakshina
Kannada on 31.07.2021, Uttara Kannada on 15.09.2021 and Udupi District on 28.09.2021.
As per the objections, suggestions and comments received, the concerned District
Coastal Zone Management Committees have considered and recommended the same
to KSCZMA.

Accordingly, NCSCM was requested to revise the draft CZMP and they had submitted
the revised CZMP. As per the decision in the meeting held on 24.05.2022, KSCZMA had
submitted the final draft CZMP to MoEF & CC, GoI for approval. The MoEF&CC has given
it’s approval for the CZMP of Karnataka on 02.09.2022.

7.2 WATER RESOURCES

Irrigation is an important source of raising productivity in agricultural sector. Expansion
of both the groundwater and surface water resources have helped to increase the
cultivated area under irrigation in the state over time. Around 80% of fresh water is used
for irrigation purpose and remaining for domestic, industry purposes. As per the report
on Israel Technology Based Farming expected water yield under different Basin is given
in Table 7.7.

Table 7.7: Water yield in Karnataka in BCM

Area in Rainfall yield Surface water Ground water yield

Basin
Sq Km in BCM yield in BCM in BCM
Godavari 4450 3.57 1.42 0.25
Krishna 113180 82.27 27.45 8.79
Cauvery 34663 34.19 12.03 3.40
West Flowing Rivers 24878 84.55 56.6 1.50
Palar & Pennar 13150 8.85 0.91 0.93
Total 190321 213.43 98.41 14.87

Source: Report of ITBF

State has prepared master plans for the various river basins and the total utilization
potential under major, medium and minor irrigation projects using surface water is 47.86
BCM and the present utilization is limited to 37.45 BCM as shown in Table 7.8.

Table 7.8 : Surface Water Utilization in Karnataka

Ultimate Utilization in
Sl.
Basin –wise description
No. BCM TMC Percentage

1 Krishna 26 927 70

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Ultimate Utilization in
Sl.
Basin –wise description
No. BCM TMC Percentage

2 Cauvery 8 270 20
3 Godavari 1 22 2
4 Other basins 3 103 8
Total for the state 37 1,323 100

Source: Report of ITBF

Details of trends in Irrigated Area for the past five decades are given in Table 7.9.

Table 7.9 : Trends in Irrigated Area in Karnataka (Area in lakh hectares)

Gross Cultivated Gross Irrigated Net Irrigated Gross Irrigated Area as a % of

Year
Area Area Area Gross Cultivated Area
1980-81 106.60 16.76 13.62 16
1990-91 117.59 25.98 21.13 22
2000-01 122.84 32.71 26.43 27
2010-11 130.62 42.79 34.90 33
2020-21 149.10 60.64 49.31 41

Source: Directorate of Economics & Statistics

Water for irrigation purpose comes from various sources such as wells, ponds, canals,
rivers,dams,reservoirs, rainfall etc. Source-wise irrigation developed during 2020-21 is
given in Table 7.10. Among all the sources of irrigation, the net area irrigated from the
tubewells is highest (i.e.43.83%). The second important source is canals covering 29.95%
and 7.00% area is covered by wells. Historically, though tanks have been considered the
principal source of irrigation, their contribution is very minute (i.e.3.35%).

Table 7.10: Source-wise Irrigation during 2020-21 (Area in lakh hectares)

Irrigated Area
Source %s ha. re to Net Irrigated Area
Gross Net

Canals 17.68 14.77 29.95

Tanks 2.16 1.65 3.35
Wells 4.07 3.45 7.00
Tube/BoreWells 26.47 21.61 43.83
Other Sources 10.26 7.83 15.88
Total 60.64 49.31 100.00
Source: Directorate of Economics & Statistics

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7.2.1. Year wise allocation and Expenditure on Major & Medium Irrigation Projects:
Expenditure on major and medium irrigation projects was Rs. 19,820.19 crores in 2021-22.
Expected expenditure for the year 2022-23 is Rs. 19,668.99 Crores and the expenditure
incurred to end of November 2022 is Rs. 11,642.01 Crores. Table 7.11 highlights investment
in irrigation projects.

Table 7.11 : Year wise Allocation and Expenditure of Irrigation Sector (Rs. in crores)

Year Allocation Expenditure

2019-20 17,212.33 17,277.69

2020-21 18,936.13 19,212.46

2021-22 19,971.58 19,820.19

2022-23 19,668.99 11,642.01 (up to Nov. 2022)

7.2.2 Irrigation Potentials Created through Major and Minor Irrigation Projects:

The surface water (canal) irrigation projects are classified into major, medium and minor
irrigation projects based on the cultivated command area generated by them. Irrigation
Potential Created Cumulative Area is detailed in Table 7.12, Appendix 7.3 highlights
irrigation potential created since VII Five Year Plan.
Table 7.12: Irrigation Potential Created–Cumulative area in lakh Ha.

Source 2019-20 2020-21 2021-22 2022-23 (Anticipated)

Major and Medium Irrigation 29.34 29.81 30.15 30.82

Minor Irrigation (Surface water) 12.11 12.20 12.30 12.35

Total 41.45 42.01 42.45 43.17

7.2.3 Krishna Bhagya Jala Nigam Projects (KBJNL)

(a) The Upper Krishna Project stage I and II has been completed in 2012-13 and completion
report has been submitted to Central Water Commission (CWC). In addition to the above,
Nigam has been entrusted with 31 additional projects with estimated cost of Rs.10,878.71
Crore incurring expenditure of Rs.4,700.37 crore upto November 2022 and as against the
contemplated command area of 2,03,593 ha, potential created upto November 2022 is
76,900 ha by these projects.
(b) The estimated cost of additional on-going projects works out to Rs.26,971 crore. The
expenditure incurred up to November, 2022 on the aforesaid projects is Rs.15,195.62 crore.
The potential created by the additional projects up to November 2022 is 2,78,000 H.A.
(Excluding UKP Stage I, II & III). Year wise allocation and expenditure on major irrigation
projects by KBJNL is given in Table 7.13.

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Table 7.13: Year wise Allocation and Expenditure on major irrigation projects by KBJNL
(Rs. in Crores)

Year Allocation Expenditure

2019-20 3,736.75 4,244.36
2020-21 5,284.38 6,005.41
2021-22 6,142.68 5,870.89
2022-23 3,237.07
6,126.24
(Up to November 2022)

(c) The Krishna Water Disputes Tribunal-II has passed an award in December, 2010
and further report in 2013 allocating 173 TMC of water to Karnataka State. Out of this,
130.00 TMC is the share of UKP Stage-III. The Government of Karnataka had accorded
administrative sanction at a cost of Rs.51,148.94 crores (2014-15 price level), including cost
of Rs.30,143.17 crores towards LAQ and R&R. The 09 project sub components under UKP
Stage-III and the LAQ, R&R and BTDA are in progress. As on 30st November 2022, an
expenditure of Rs. 14,480.96 crore has been incurred.

Under Upper Krishna Project Stage-III, it is proposed to provide irrigation facilities to

5.94 lakh hectares of land in drought prone areas of Vijayapura, Bagalkot, Kalaburagi,
Raichur, Koppal, Gadag & Yadgiri districts by taking up 9 irrigation projects. As per Article
371(J) the districts benefitted from the Upper Krishna Project Stage-III are Kalaburagi,
Yadgiri, Raichur, Vijayapura, Bagalkot, Gadag and Koppal districts in Northern Karnataka.
Government has accorded administrative approval for implementation of Micro-irrigation
(Drip irrigation) system as a pilot project under 2nd Stage of Ramthal (Marol) LIS. The
project is completed, and is in operation and maintenance.

7.2.4 Other Schemes and Programmes

(a) Sonthi Lift Irrigation Scheme (LIS)

Sonthi LIS implemented in Kalaburagi and Yadgiri districts aims at providing irrigation
water for 16,000 hectares on the left flank of river Bhima. The estimated cost of the project
is Rs.673.90 crore. KBJNL has submitted a proposal to CWC, New Delhi for approval.
The environmental clearance has been received from MOEF. The project has been
approved by Central TAC and the same has been forwarded to Planning Commission
for Investment Clearance and proposed to be taken under AIBP for availing central
assistance. An expenditure of Rs.342.37 crore has been incurred up to 31st November,
2022 on the project.

(b) Improvement of Water Use Efficiency in NLBC command Area of Upper Krishna
Project.

The Government of India has launched National Water Mission with a major objective
of improving water use efficiency. Krishna Bhagya Jala Nigam Limited (KBJNL) has
proposed a project for improving of water use efficiency in Narayanapur left bank canal
command area the UKP covering cultivated area of 4.09 lakh hectares of NLBC, SBC,
MBC, IBC and JBC spread over Vijayapura, Kalaburagi and Yadgiri districts. The project
targets for achieving water use efficiency by 25% and the updated approved estimated

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project cost is Rs.4,699.00 crore. This initiative will considerably benefit agricultural sector
of the aforementioned three districts.

The Planning Commission, GoI had accorded “Investment Clearance” to NLBC-ERM

project on 08-10-2013. The ERM component and Phase-I SCADA Automation under NLBC-
ERM is completed. Phase-II of SCADA Automation for NLBC, SBC, MBC, JBC & IBC canal
networks is almost completed. The GoI had released Rs.70.00 crores central assistance
under AIBP scheme during 2014-15. Further, as against freezed Central Assistance, GoI
has released Rs.929.50 crore. Balance Rs.11.10 crore Central Assistance is to be released by
Government of India.

7.2.5 Karnataka Neeravari Nigam Limited Projects

The Karnataka Neeravari Nigam Limited (KNNL) is established by the Government

of Karnataka in 26.11.1998 under Companies Act 1956 as a special purpose vehicle to
accelerate the implementation of Krishna Basin Projects except Upper Krishna Project.
KNNL has taken up numerous irrigation, tank filling and modernization works. 45 tank
filling proposals in 13 districts were taken up by the Nigam covering 2,034 tanks with
an estimated cost of Rs.9,361.57 crores incurring an expenditure of Rs. 4,974.03 crores.
At present KNNL has taken up 39 projects with plan to create irrigation potential of
11,05,717 ha. Since inception upto November 2022 the cumulated potential created was
8,74,072.65 ha with an expenditure of Rs.28,495.93 Crore

To increase the irrigation efficiency and to save water KNNL has taken up modernization
of 16 projects with an estimated cost of Rs. 10,751.89 crores incurring expenditure of
Rs. 8,363.78 crores.

7.2.6 Visvesvaraya Jala Nigam Limited

Government of Karnataka vide its Order, Dtd 20.08.2016 has accorded approval for creation
of new corporation namely M/s VISVESVARAYA JALA NIGAM LIMITED, BANGALORE,
as a wholly owned Government of Karnataka undertaking under Water Resources
Department.

Government has also transferred the projects namely Upper Bhadra Project, Yettinahole
projects, Kadur lift scheme, Gayathri and Vani Vilasa Sagar projects and its related offices
along with officers/staff to VJNL. Under Upper Bhadra , Gayatri and Vanivilasa sagar
projects, VJNL has planned to create 2,40,017 ha irrigation potential, upto November
2022 it has created 24,332 ha irrigated potential with an expenditure of Rs.18,513.39 crore.

7.2 .7 Cauvery Neeravari Nigama Projects

Cauvery Neeravari Nigama Limited (CNNL) was established by the Government of

Karnataka in 03.06.2003 under Companies Act 1956 as a special purpose vehicle to
accelerate the implementation of Cauvery Basin Projects in Karnataka. The Cauvery
basin in Karnataka is 34,273 Sq.Kms which constitutes about 17.99% of the geographical
area of 1,91,791 Sq.Km in Karnataka. Major Rivers flowing in this basin are Harangi (50
KM), Hemavathy (245 KM), Lakshmanatheertha (131 KM), Kabini (230 KM), Shimsha (221
KM), Suvarnvathi (88 KM), Arkavathy (161 KM) and the main river Cauvery (381 KM). The
Cauvery Basin is spread across 11 districts.

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a) Allocation and Expenditure for the year 2022-23

Total grant of Rs.3,063.54 Crores (with O.B) has been allocated for the year 2022-23. The
overall expenditure for all the projects upto the end of November 2022 is Rs.1,537.62
Crores. It is programmed to create a physical potential of 994 Ha in the current year.

b) Physical and Financial Progress of On-going Major and Medium Projects:

There are totally 29 potential oriented schemes taken up under the jurisdiction of Cauvery
Neeravari Nigam Ltd Out of which 4 are major projects, 18 are Medium irrigation projects
and 7 allied LIS schemes. Most of the works are physically completed. The Yagachi project,
a major Potential oriented work and Kachenahalli Lift irrigation scheme is in progress.

Three zones viz., Irrigation (S) zone, Mysore, Hemavathy Canal Zone, Tumkur and
Hemavathy Project Zone, Gorur are coming under the jurisdiction of CNNL. Cumulative
potential created upto November 2022 was 4,44,604 ha incurring expenditure of
Rs.10,321.84 Crore

c) The details of on-going projects are as below

1. Yagachi Project: The project envisages the construction of a composite dam across
Yagachi River a tributary of Hemavathy near Chikkabyadagere village in Belur taluk of
Hassan district.The planned utilisation from this project is 5.74 TMC to create an ultimate
potential of 17,265 ha including Kyathanahalli LIS. The taluk benefitted by this project are
Hassan, Belur and Alur of Hassan District. Kyathanahalli LIS is a part of Yagachi Project.
Works of Kyathanahalli LIS are physically completed. Kamasamudra branch canal under
Yagachi project is under progress. The irrigation potential created under Yagachi project
(including Kyathanahalli LIS) since inception to the end of March-2022 is 15,373 Ha.
potential of 494 Ha is programmed for the year 2022-23.

2. Kachenahally LIS: The project envisages to lift 0.73 TMC of water in 3 stages from
Hemavathy River near Kachenahalli Village in Channarayapatna taluk of Hassan District.
The ultimate potential to be created is 5,100 Ha. In 1st stage works are completed. In
2nd stage canal distributaries are under progress. 3rd stage work is under progress. The
irrigation potential created under Kachenahally since inception to the end of March-2022
is 3,238 Ha. potential of 500 Ha. is programmed for the year 2022-23.

3. Modernisation of Anecut Canals: Under the jurisdiction of CNNL, it is proposed to take

up modernisation of anicut canals under 22 anicuts. Accordingly, 28 anicut canals/branch
canal modernization are taken up in phases with the total estimated cost of Rs.1,616.67
crores. Among these, 27 works are completed, 1 works is on-going. The cumulative
expenditure incurred up to end of November 2022 is Rs.2,118.20 Crores.

7.2.8 Improvements of Canal system

oo Improvements to canals under reservoirs has also been taken up to improve the
system efficiency. A total of 42 modernization works at a cost of Rs.5,063.40 crore has
been taken up in CNNL out of which 32 works (Est cost: Rs.2,834.03 Cr) are completed,
8 works (Est cost: Rs.2182.37 Cr) namely D.D.Urs canal ch:49 to 75 Km, Taraka Right
Bank canal 10 to 36 Km, Hebbala left bank canal 0 to 27.20 Km, VC system under

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KRS project package 1A, Hemavathy Right bank canal 0 to 92.48 Km, Hemavathy
Right Bank High level canal ch:0 to 96.82 Km and Tumkur branch canal 0 to 70 Km
& Y alignment re modeling & Tumkur branch canal 70.36 to 166.90 Km are under
progress.
oo Tender is under process for 2 works namely Improvements to D-12 under Tumkur
Branch canal of Hemavathy & Improvements to D-15 under Tumkur Branch canal of
Hemavathy (Total Est Cost: Rs.47.00 Cr).
oo The cumulative expenditure incurred up to end of November 2022 is Rs.4,782.28
crores
7.2.9 Drinking water supply schemes ( Tank Filling Schemes)

oo To alleviate the severe drinking water problems in the drought prone areas, 75
drinking water schemes at an estimated cost of Rs.4,960.86 crore has been taken
up under the jurisdiction of CNNL. It is proposed to fill 1,759 tanks to benefit 2307
villages coming under Mysore, Mandya, Kodagu, Tumkur, Hassan, & Ramanagara,
Chamarajanagara district.
oo Out of 75 schemes, 34 schemes namely Doddaguni, Gulur Hebbur, Honnavalli,
Kergodi Rangapura, Alambur, Kanva, Chikkanandi, Neralekere, Bellavi, Kanathur,
Dabbeghatta, Shivasandra, Hagalavadi, Chelur, Kodiyala, Mathikere, Devarayapatna,
Kenkere, Neeragunda, Alilughatta, Elechakanahalli, Gandhigrama, Satanur-
Kailancha, Halebeedu-Madehalli, Nugehalli, Arakalgudu-Ganganalu, Mukkanahally,
Gollarahosahalli, Bhadrapura, Vajranakatte, Kodiyala, Bandihalli, Byaladakere, Bellur
Dasanakere DWS are completed & commissioned.
oo 37 schemes namely Suthur, Hura, Garalapura, Narayanapura, Muthinamulusoge,
Bannhalli, Ramanagudda, Ibbajala, Styagala, Byramanagala, Hadya, Mallipatna,
Athaguru, Malligere, Tittamaranahalli, Nugu, Hosapura, Hiresave-Shravanabelagola,
Rangenahalli, Channarayapatna ammanikere, Kallesomanahalli, Anekere
shambudevearakere, Dudda & shantigrama, Guddehosahally, Chakenahalli,
Ranaghatta, Satyamanagala, Rangenahalli 2nd stage, Rajatadripura, Biligere,
Aralaguppe, Sriranga, Bikkegudda, J.C.Pura, Madenuru, Sopanahalliand
Chikkanayakanhalli tank filling schemes are under progress.
oo Tender is under process and yet to invited for 4 schemes namely Dudda-Shantigrama
3rd stage, Hediyala, Raghavapura, and Matadahalla tank filling schemes.
oo The cumulative expenditure incurred up to end of November 2022 is Rs.2,950.66
Crores.

WAY FORWARD

7.2.10 The National Hydrology Project

1. National Hydrology Project (NHP) is taken up by Ministry Of Water Resources (MOWR)

with World Bank Assistance and it is 100% Central funded project for the State. The
project is proposed over a period of 8 years and to be executed in two phases i.e,
Phase I : FY 2015-16 to 2020-21(5 years) Phase-II: FY 2020-21 to 2023-24 (3 years) . The
project is effective from 05-05-2017.

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2. National Hydrology Project (NHP) aims at Establishment/modernization of new

& existing hydro met observation networks to automated, real time monitoring
systems for both surface water and Ground Water. Under this project, the works of
establishment of Telemetric raingauge stations, Automatic weather stations, Digital
Water Level Recorder, Hydrological observations stations are being taken up. Also, the
works of SCADA for reservoirs & Bathymetric Survey for reservoirs are being carried
out.
3. The Annual Work Plan for 2022-23 is approved for Rs.40.74 crores by MoWR. An amount
of Rs. 27.47 crore is released by Government of India and the Financial Progress till
date is Rs. 15.94 crore.

7.2.11. Dam Rehabilitation & Improvement Project (DRIP)

DRIP Phase-I

oo Rehabilitation works of 22 Dams of the State were taken up with an allocation of

Rs.541.00 crore under World Bank Loan assisted Dam Rehabilitation & Improvement
Project (DRIP). Out of 43 Packages of 22 Dams, the works of 42 packages are
physically and financially completed. The remaining one package work (KRS Dam
package II work with a cost of Rs.58.46 crore) is under progress. Revised due date for
completion of the work is 30.04.2023. Dam Instrumentation for 12 DRIP Dams to be
retendered under DRIP-II.
DRIP Phase-II & Phase-III

oo Government of Karnataka has accorded approval for the Implementation of Dam

Rehabilitation & Improvement Project (DRIP) Phase-II and Phase-III for 58 dams, to
be implemented with Loan Assistance from the World Bank at a cost of Rs.1,500.00
crores vide Government Order, DATED:06.07.2021. The duration of project is 10 years
for two phases. Empowered Committee (EC) for DRIP Phase II & Phase III is constituted
for smooth implementation of Project vide Government Order: WRD 16 DSP 2021,
Bangalore, Dated: 22.10.2021.
oo Conditional No Objection letter from CWC/World Bank has been received for Project
Screening Templates (PSTs) of 08 Dams (Gayathri, Tungabhadra, KRS, Narayanpur,
Almatti, Taraka, Votehole & Hemavathy), Out of which NIT has been published for
11 packages, Executive Order issued for 6 packages and works are under progress.
Executive Order issued for 3 packages, agreement to be executed. No Objection
letter from CWC/World Bank is awaited for 5 Dams. Other Dams Project Screening
Templates (PSTs) are under preparation. DSRP/DSRT inspections are to be conducted
for few DRIP Phase II and Phase III dams, Accordingly the PSTs will be prepared.
oo Two works of DRIP I has been Spill over to DRIP Phase II and III
1) KRS hydro-mechanical -Package II: The work has been continued as spill over
under DRIP Phase II & III. However, the Revised date of completion is 30.04.2023.
The expenditure upto November 2022 is Rs. 32.10 crore.
2) Instrumentation for 12 Dams works Agreement to be executed.

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7.2.12. Accelerated Irrigation Benefit Programme (AIBP) including CADWM

GoI prioritized 99 projects under AIBP of PMKSY scheme, in which, 5 projects of

Karnataka are included. Out of these 5 projects, Sri Rameshwar LIS project is included
under top priority & the remaining 4 namely Upper Tunga Project, Bhima LIS Karanja &
NLBC-ERM are prioritized next. Total Central Assistance for CADA activities received for
the said projects during 2020-21 is Rs. 6.89 crores (CADWM only), during 2021-22 Central
Assistance not released and 2022-23 proposal submitted for Rs.12.672 crores for Upper
Tunga Project and Central Assistance yet to be released. Sri Rameshwara LIS and Bhima
LIS CADWM components are completed.

7.2.13 Karnataka Integrated and Sustainable water Resources management

Investment Programme (KISWRMIP)

Under KISWRMIP with the assistance of Asian Development Bank(ADB) various Nigams
have taken up the works of modernization of main canals inventory of River basins to
prevent flooding. Command area development works State specific action plan on
Climate changes various training Programmes etc.

7.2.14 MINOR IRRIGATION ( SURFACE WATER)

Projects having atchkat up to 2,000 Ha. are classified as Minor Irrigation schemes.
Projects having atchkat between 40 Ha to 2,000 Ha are under the jurisdiction of the
Minor Irrigation Department. These include tanks, pickup, Bhandaras, Barrages and Lift
Irrigation Schemes. These Minor Irrigation projects are widely spread all over the state.
Presently, there are 10,448 minor irrigation projects in existence under the jurisdiction
of this Department with a culturable command area of 8,53,903 hectares. In addition
to these projects, this Department is looking after the operation and maintenance of 7
Medium Irrigation projects having a command area of 8,342 hectares.
Minor Irrigation Department is having 3,238 Irrigation tanks and 518 Percolation tanks.
These tanks are being inspected twice in a year by the concerned Executive Engineers
and Assistant Executive Engineer. The defects noticed during inspection will be recorded
in the inspection report. Necessary repair works will be taken up from the grants made
available during the year on priority. The minor irrigation scheme progress from the year
2019-20 to 2022-23(Upto end of the November 2022) is provided in the Table 7.14.

Table 7.14: Statement showing progress under Minor Irrigation (Surface water) Schemes

Expenditure Potential created

Year
(Rs. in Lakhs) (in Ha)

2019-20 2,29,428.87 21,872.66

2020-21 2,78,277.24 33,138.05

2021-22 2,74,601.69 23,388.42

2022-23
1,44,903.81 9,370.78
(Upto the end of Nov. 2022)

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I State Schemes

1. Construction of new tanks: Under this head of account new tanks are constructed
and water is being stored during rainy season to supplement the deficit of water to the
crops during non rainy period or scarce rainfall period. Earthen bunds are constructed
across the rivers, streams etc and the water is being stored during rainy season which will
be utilized for irrigation during deficit rainfall period. The Minor Irrigation Department is
involved in proper distribution of stored water to the fields for irrigation by gravity flow.
Construction of new tank is being carried out from state fund and also from NABARD
loan assistance. Construction of the Percolation tanks are also being done under this
head of account which are mainly intended to recharge the Ground Water table and
help in raising the water level in the bore wells and open wells in the surrounding area
which will be used for irrigation.

2. Modernization of tank: Under this head of account, Department is taking up

modernization of tanks under which the works such as strengthening of bund, repair of
waste weirs, canals including lining of canals are being taken up.

3. Construction of Barrage, Anicut, Etc. Under this head of account Department is

taking up the construction of barrages, bridge cum barrages, vented dams, salt water
exclusion dams, anicut and pick ups across rivers and streams to store water. Permission
is being given to the farmers to lift water from these storage structures for irrigation by
using their own pumps. As a result, there will be increase in ground water table in the
surrounding area and water will be available in the open wells and bore wells. Thereby,
farmers will get water for irrigation and also drinking purposes.

4. Lift Irrigation Schemes: Under this head of account Department is implementing

the lift irrigation schemes to lift water from the rivers, streams, and other surface water
sources to an elevated area and to provide irrigation to the farmers lands.

In accordance with Budget Speech during 2016-17, Administrative Approval has been
accorded in vide GO, dated 20-10-2015 for filling treated waste water to 126 tanks of
Kolar and Chikkaballapur districts from Koramangala Challaghatta valley. The work is in
progress.

Administrative Approval has been accorded for Rs. 883.54 crores vide GO, dated
21-06-2016 for filling treated waste water to 54 tanks of Chikkaballapur district. The work
is in progress.

Administrative Approval has been accorded for Rs. 240.00 crores vide GO dated
10-05-2016 for filling treated waste water to 60 tanks of Anekal taluk Bangalore Urban
district. The work is in progress.

5. Special Component Plan: Under this head of account, department has taken up MI
Schemes such as construction of new tanks, anicut / pickup bhandars, modernization
of tanks and lift irrigation schemes etc., to create irrigation facility to the lands belonging
to scheduled caste beneficiaries.

An expenditure of Rs.15,354.52 lakhs is incurred against the grant of Rs. 25,000.00 lakhs
during 2022-23 (End of November 2022). Irrigation facility of 1,364.4 Ha is created against

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the target of 5,236.85 Ha. during 2022-23 (End of November 2022). These schemes are
being handed over to respective beneficiaries after construction.

6. Tribal Sub plan: Under this head of account department has taken up MI schemes
such as construction of new tanks, anicut / pickup bhandars, modernization of tanks
and lift irrigation schemes etc., to create irrigation facility to the lands belonging to
scheduled tribe beneficiaries.

An expenditure of Rs.6017.94 lakhs is incurred against the grant of Rs.11,000.00 lakhs

during 2022-23 (End of November 2022). Irrigation facility of 542.13 Ha is created against
the target of 2,001.56 Ha. 2022-23 (End of November 2022). These schemes are being
handed over to respective beneficiaries after construction.

7. Pashchima Vahini: Vented dams are constructed under “PaschimaVahini” project to

collect and store water flowing in west-flowing rivers of coastal districts. A total of 54
works have been approved under the scheme, with an estimated cost of Rs.374.00 crore.
An expenditure of Rs.18703.59 lakhs is incurred against the grant of Rs.25000.00 lakhs
during 2022-23 (End of November 2022).

8. Land Acquisition/charges & settlement of claims : Under this head of account an

expenditure of Rs.4704.38 lakhs is incurred against the grant of 4704.38 lakhs during
2022-23 (End of November 2022). Mainly this grant has been utilized to make payments
to land acquisition cases involving enhancement of land values including the interest as
per the court orders.

9. Accelerated Irrigation Benefit Programme (AIBP) Major works : Government of

India is giving approval for taking up of the new minor irrigation works involving the
creation of fresh irrigation facility since 2009-10, in the Drought Prone Area Development
Programme (DPAP) taluks under Accelerated Irrigation Benefit Programme (AIBP).

Minor irrigation department is implementing 1273 minor irrigation works with an

estimated cost of Rs.955.08 crores after obtaining approval to these works in 10 batches
since 2009-10. So far 1157 works are completed and the new irrigation facility is created
in 10255.00 Ha.

10. State Schemes Flood Control Works: The Minor Irrigation Department is
implementing River bank protection works to prevent damages due to floods. The river
banks are being protected by the construction of retaining wall to the river banks for
the prevention of loss of lives and properties due to the erosion of the banks during the
floods in rivers and streams.

11. Karnataka Tank Conservation and Development Authority: The Authority started
functioning from November 2017. The functions of Karntaka Tank Conservation and
Development Authority include Conservation of Lakes/Tanks, rejuvenation, Ground Water
Development, Environmental Protection, Wet Land Development, Water Management,
Agriculture and Horticulture Development, Development of Agriculture based Industries
etc., either directly or through Departments/Agencies.

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WAY FORWARD

Promote sustainable agri-practices by creating awareness of the existing schemes around

subsidizing micro-irrigation (Per Drop More Crop, Micro-Irrigation Fund), preserving soil
health (Paramparagat Krishi Vikas Yojana, Soil Health Card) and host of initiatives under
National Mission for Sustainable Agriculture. Prioritize districts like Belagavi, Raichur,
Vijaya Pura, Bagalokote which have high potential for micro irrigation.

A holistic approach including precision farming, protective cultivation, automation in

irrigation, fertigation, use of treated waste water for irrigation and collective farming are
some of the methods suggested to address major concern of water scarcity in the state.
A marked shift from traditional method of irrigation to innovative micro irrigation system
is the solution to conserve water and thus increase the availability of water for various
other purposes. Adoption of poly houses, net houses, green houses will not only save
water, energy and labour costs but also will increase crop productivity and quality of the
produce. Converting more and more areas of canal based and tank based flood irrigated
land into drip irrigation leading to substantial reduction in the usage of fresh water. These
key measures are expected reduce water scarcity to a large extent in the state.

7.3 GEOLOGY AND MINING SECTOR

The Department of Mines and Geology is one of the leading scientific and technical
department of the State with a long history of 127 years. Major functional activities of
the department include mineral exploration, assessment of mineral wealth, quality
analysis and sanctioning of mining leases and quarrying leases through the Minerals
Administration and also include collection of royalty and regulation of unauthorized
mining activities. The contribution of the department is immense in sustainable
development of the State by promoting environment friendly and scientific mining.
7.3.1 Revenue collection and operational expenditure of the department
The annual target of revenue collection for the Department of Mines and Geology in the
year 2022-23 is Rs.6,500.00 crores. The revenue target till November-2022 is Rs.4,160.00
crores and have achieved revenue collection of Rs.3,559.33 crores. The details of revenue
collections from 2019-20 to 2022-23 (up to November-2022) are given in the Table 7.15.
Table 7.15: Yearwise details of achievement of revenue collection and target
(Rs. in crore)

Year Annual Target Achievement Major Mineral Minor Mineral

2019-20 3,550.00 3,629.02 1,816.67 1,812.35
2020-21 3,750.00 3,893.44 1,974.66 1,918.78
2021-22 4,357.00 6,308.31 4,092.80 2,215.51

6,500.00 (Rs.4,160.00 crores

2022-23 3,559.33 2,213.89 1,345.44
target up to Nov-2022)
Royalty collection in the table is as per reconciled figures.
Source: Demand-Collection-Balance Section, Department of Mines & Geology.

Further, the compound annual growth rate of 9.98% has been achieved in the royalty
collection over the last five years. Compared to the last 5 years’ revenue collection of the
Department of Mines & Geology with the plan and non-plan expenditure, the ratio is just

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0.02 which is very negligible. The detailed information is provided along with Figure 7.3
and in the Table 7.16.

Table 7.16: Details of Royalty Collection, plan & non-plan expenditure and their ratio for the
past five years (Rs. in lakhs)

Royalty and
Sl. No. Year Royalty Expenditure
expenditure ratio
1 2017-2018 2,74,626.00 5,327.00 0.02
2 2018-2019 3,02,643.59 5,819.71 0.02
3 2019-2020 3,62,902.00 7,840.78 0.02
4 2020-2021 3,89,344.00 6,905.56 0.02
5 2021-2022 6,30,831.00 6,618.25 0.01

Figure 7.3: The bar chart showing royalty collection, expenditure and their ratio of the
department for the past five years

700000
630831
600000

500000
Rs.in Lakhs

389344
400000 362902
302643.59
300000 274626

200000

100000
5327 5819.71 7840.78 6905.56 6618.25
0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
Financial years

Royalty Collection Expenditure Ratio

7.3.2 Major Achievements of the department:

1. Karnataka State is awarded with “Rashtriya Khanij Vikas Puraskar” third prize under
category-I (Fe, Limestone, and Bauxite) for performance in Mineral Exploration,
Auction of Mineral Blocks and Commencement of Mining Operations during the year
2019-20 and 2020-21 from Ministry of Mines, Government of India.
2. This award included Rs.1.00 crore cash reward and the certificate. Apart from this,
Rs.2.05 crores financial incentive towards auction of mineral blocks was given to the
State.

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3. The State has successfully auctioned 34 mineral blocks till date in which 5 are
Composite License and 29 are Mining Lease (24 iron ore, 8 limestone and 2 gold) and
stands second in the country after Orissa with 40 blocks.
4. Out of 34 successfully auctioned blocks, production has started in 11 blocks and
generating more revenue for the State. Lease deed execution of 5 ‘C’ category Iron
ore blocks are pending due to non-availability of forest clearance.
5. Karnataka is the first State to successfully auction expired mining leases and also to
execute the mining lease for an auctioned expired block in the year 2019.
6. State had issued tender notification for 27 blocks auction in the financial year 2021-
22 and has successfully auctioned 12 blocks, which are the highest numbers in any
financial years since the onset of the auction regime.
7.3.3 Major Mineral Administration

Since the promulgation of Mines and Minerals (Development and Regulation)

Amendment Act, 2015 by Central Government, grant of mining leases through first come
first serve has been replaced with transparent e-auction process leading to the increased
flow of revenue to the state exchequer. Further, a comparison between the revenue
collection from the auctioned Iron ore mining leases and non-auctioned mining leases
shown in the Table 7.17 illustrates the economic impact after adopting new regime of
granting the mining leases through auction.

Table 7.17 : Comparative analysis of royalty realization from the leases granted through
auction and non-auction in the past four years (Rs. in crores)

Type of grant of mining

Sl. 2022-23
lease and their numbers and 2019-20 2020-21 2021-22
No. (November)
present status
Non auction: Out of 290 mines
1 1,331.80 1,382.06 1,919.12 1,069.09
111 mines are working
Auction: Out of 13 mines 12
2 92.45 121.57 255.81 132.01
mines are working
**Percentage of value of
Mineral Dispatched paid to
3 467.75 471.02 1550.66 782.89
the Government (from auction
blocks)
Total 1,892.00 1,974.65 3,725.59 1,983.99

A total of 112 iron ore & manganese mining leases have been sanctioned in the State over
an extent of 8,646.27 hectares, 134 limestone mining leases have been sanctioned over
an extent of 15,518.12 hectares and 44 other major minerals mining leases have been
sanctioned over an extent of 8,724.59 hectares.

7.3.4 Auction of Mineral Blocks

From 2016-17 to 2022-23 (till November-22), the Department has successfully auctioned
34 mineral blocks including 17 ‘C’ category iron ore leases, 07 expired iron ore mines, 02

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Gold blocks and 08 limestone blocks. Out of these blocks, mining lease deeds has been
executed for 15 blocks and in remaining 19 cases, bidders are yet to comply with the
statutory requirements for execution of lease deed.
7.3.5 National Mineral Exploration Trust
As per the section 9(C) of Mines and Minerals (Development and Regulation) Amendment
Act, 2015, all the major mineral lease holders are required to pay 2% of the royalty to
the National Mineral Exploration Trust (NMET) constituted by the Government of India.
This fund is managed by the Central Government and by utilizing these funds upon
taking the concurrence of respective State DMG’s and within the approval of NMET the
agencies notified by the Central Government like GSI, MECL and KIOCL etc., and also
through the concerned State Mines and Geology Departments exploration activities of
major minerals is being carried out.
During the period 2015-16 to 2022-23 (up to September 2022) an amount of Rs.22,601.11
lakhs has been collected and transferred to the NMET account by the State Government.
The details are given in the following Table 7.18.

Table 7.18 : Details of amount collected for NMET fund from 2015-16 to 2022-23
(upto September 2022) (Rs. in Lakhs)

Amount
NMET NMET
Royalty transferred
Year contribution due contribution
collected to NMET
(2% of royalty) collected
account
2015-16 2,088.60 41.77 41.77 41.77
2016-17 77,607.81 1,552.16 1,632.69 1,632.69
2017-18 1,79,890.15 3,597.80 3,724.56 3,724.56
2018-19
(Month wise breakup till 19,415.40 388.31 1,096.71 1,096.71
closure of SBI A/c)
Total 2,79,001.96 5,580.04 6,495.73 6,495.73
NMET collection and transfer as per Accountant General’s statement
2018-19 (Month wise breakup
after adoption of new 1,10,198.45 2,203.97 2,782.75 2,782.75
accounting procedure)
2019-20 1,37,922.07 2,758.44 2,893.73 2,893.73
2020-21 1,51,705.08 3,034.10 3,250.95 3,250.95
2021-22 2,55,339.07 5,106.78 5,279.39 5,279.39
2022-23 (September -2022**) 86,685.46 1,733.71 1,898.56 1,898.56
Total 7,41,850.13 14,837.00 16,105.38 16,105.38
Grand Total 10,20,852.09 20,417.04 22,601.11 22,601.11
**This is the reconciled amount as per the AG office.

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7.3.6 Mineral Exploration programmes taken in the State under NMET fund:

By identifying the mineral blocks in various districts of the State, agencies notified by
Central Government are carrying out mineral exploration work under the NMET fund.
During the year 2021-22, the Department has received a total of 24 exploration proposals.
07 proposals were given concurrence by the Department of Mines and Geology to take
up exploration and have rejected 14 proposals due to overlapping issues. Remaining 03
proposals were under review.

In the year 2022-23, a total of 19 proposals (including 03 pending proposals) have been
reviewed by the department and has given consent for 10 proposals. 03 proposals have
been rejected due to overlapping issues and remaining 06 blocks are under review.

Further, under this fund 14 mineral exploration programmes at the estimated cost of
Rs.39.10 crores have got the approval under NMET fund. Out of them exploration work is
complete in 10 blocks and 04 blocks exploration work is under progress.

7.3.7 Notified Private Exploration Agencies (NPEA’s)

National Mineral Exploration Policy (NMEP) 2016 envisages private sector participation in
mineral exploration and to facilitate, encourage and incentivize private sector participation
in all spheres of mineral exploration to harness the technical expertise, technological
capability and the financial resources of the private sector to discover and exploit the
country’s vast mineral resources.

Accordingly, GOI has amended the Mines and Mineral (Development and Regulation)
Act, 1957 (MMDR Act) in 2021 and initiated the process of notifying the Private Exploration
Agencies under Section 4(1) to undertake exploration.

Vide order dated: 12.08.2021, Ministry of Mines issued a guideline on procedure to be

adopted in Notifying the Private Exploration Agencies as per the scheme prescribed by
QCI-NABET.

Accordingly, so far total 13 Private Exploration Agencies (PEA) have been notified by GOI
across the country. Out of which 3 are notified in the state.

The Central Government has issued a guideline regarding the utilization of the services
of PEA’s and have classified the mode of projects into Mode-A, Mode-B & Mode-C
respectively for direct projects taken up by PEA’s under NMET fund, assisting the State
Government projects under NMET fund and projects of State Government under State
fund.

DMG, Karnataka has received 08 proposals from 03 Private Exploration Agencies

(M/s. V. M. Salgaocar and Brother Private Limited-01, M/s. GeoExpOre Private Limited-05 &
M/s.Ecomen Laboratories Pvt. Ltd-02) seeking in-Principle approval under Mode-A (from
NMET fund) from 2021-22 to till date.

Out of 08 proposals, DMG has given In-Principle approval for 03 proposals and have
rejected 01 proposal.

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7.3.8 Exploration programmes carried out by the Department

During the year 2021-22, exploration wing of the department has carried out preliminary
exploration programme in 10 blocks, the details are given in the Table 7.19.

Table 7.19: The details of preliminary exploration programme in 10 blocks during the year
2021-22

Sl. Name of the block & Extent

Village Taluk & District Mineral Remarks
No. No. (Hectare)
1 Byralinganahalli 3.00 Byralinganahalli Chikkanayakanahalli, Quartz G4 report
quartz block Tumakuru submitted.
(Block_2021_2022_001)
2 Nandagudi clay block 26.30 Nandagudi Hosakote, Bengaluru Clay Primary
(Block_2021_2022_002) Rural field work is
completed
3 Shidlaghatta clay block 48.00 Shidlaghatta Chikkaballapura Clay Primary
(Block_2021_2022_003) field work is
completed
4 Sakkarayapatna 4.10 Sakkarayapatna Kadur, Chikkamagaluru Quartz G4 report
quartz block submitted.
(Block_2021_2022_004)
5 Uligere quartz block 18.60 Uligere Kadur, Chikkamagaluru Quartz G4 report
(Block_2021_2022_005) submitted.
6 Ketumaranahalli 5.19 Ketumaranahalli Kadur, Chikkamagaluru Quartz G4 report
quartz block submitted.
(Block_2021_2022_006)
7 Hosahalli quartz block 3.26 Hosahalli Kadur, Chikkamagaluru Quartz G4 report
(Block_2021_2022_007) submitted.
8 Devaramallapura 3.94 Devaramallapura Sanduru, Ballari Quartz Primary
quartz block field work is
(Block_2021_2022_008) completed
9 Belagala Tanda 73.20 Belagala Tanda Ballari Quartz Primary
quartz block field work is
(Block_2021_2022_009) completed.
10 Nadavi quartz block 60.00 Nadavi Siraguppa, Ballari Quartz Primary
(Block_2021_2022_010) field work is
completed

During the year 2022-23 (till November 2022), the exploration wing of the department
has carried out preliminary exploration programme in 07 blocks, the details are given in
the Table 7.20.

Table 7.20 : The details of preliminary exploration programme in 07 blocks during the year
2022-23

Sl. Name of the Extent Taluk &

Village Mineral Remarks
No. block & No. (Hectare) District

Primary
Amate Bauxite block Khanapur,
1 39.6 Amate Bauxite field work is
(Block_2022_23_001) Belagavi
completed

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Sl. Name of the Extent Taluk &

Village Mineral Remarks
No. block & No. (Hectare) District

Primary
Biluru Bauxite block Khanapur,
2 31.5 Biluru Bauxite field work is
(Block_2022_23_002) Belagavi
completed

Primary
Biluru Bauxite block Khanapur,
3 4.71 Biluru Bauxite field work is
(Block_2022_23_003) Belagavi
completed

Primary
Biluru Bauxite block Khanapur,
4 20 Biluru Bauxite field work is
(Block_2022_23_004) Belagavi
completed

Navge Bauxite block G4 report

5 60 Navge Belagavi Bauxite
(Block_2022_23_005) submitted.

Primary
Kalluru Copper block Manvi,
6 80 Kalluru Copper field work is
(Block_2022_23_006) Raichuru
completed

Ubrani Titaniferous Primary

Channagiri, Titaniferous
7 agnetite block 6.12 Ubrani field work is
Davanagere Magnetite
Block_2022_23_007) completed

7.3.9 Minor Mineral Administration

The 612 specified minor mineral quarry leases (including ornamental granite) over an
extent of 3,329.06 acres and 2,700 non-specified minor mineral quarry leases (excluding
ordinary sand) over an extent of 10,026.32 acres have been granted in the State of
Karnataka. In this year, till November 2022, the department has granted/executed 148
non-specified and 22 specified minor mineral quarry leases.

At present 179 auctioned sand blocks over an extent of 2,340.27 acres and 125 patta land
sand blocks over an extent of 996.04 acres are working in the State.

7.3.10 District Mineral Foundation Trust

Government of India has amended the MMDR Act w.e.f 12.01.2015 wherein under Section
9(B) a provision has been made to establish a trust called the “District Mineral Foundation”
which is a non-profit body to formulate and implement programs for the development
of the people living in the mine-affected area and supplemented by the guidelines of
Pradhan Mantri Khanija Kshetra Kalyana Yojana issued on 16.09.2015.

The State Government vide G.O. dated 05.11.2015 notified the establishment of non –profit
District Mineral Foundation (DMF) in each of the district of Karnataka. Further, the State
Government, in exercise of the powers conferred by Section 15(4) of MMDR Act, framed

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the Rules of District Mineral Foundation (DMF) on 11.01.2016 under the guidelines of
Pradhan Mantri Khanij Khsethra Kalyan Yojan (PMKKKY) and same has been amended
on 25.07.2016, 08.03.2018 and 06.05.2020.

7.3.11 In respect of major mineral, Government of India vide Notification dated:

17.09.2015 has directed to collect the DMF from;

(i) Mining lease granted after 12.01.2015, Collection of DMF amount at the rate of 10% on
royalty.
(ii) Collection of DMF amount for Mining lease granted on or before 12.01.2015 at the
rate of 30% on royalty. As per order dated: 13.10.2017 passed by the Hon’ble Supreme
Court in Transfer Case (Civil) No: 43/2016 FIMI v/s Union of India and others, collection
of royalty as per the DMF rules with effect from dtd: 17.09.2015. Accordingly, DMF
amount is being collected from the mining lease holders from 17.09.2015.
With respect to minor minerals as per the KMMC (amendment) Rules, 2016, which is
applicable from 12.08.2016, 30% of royalty is collected as DMF from the quarry lease
holders which were granted prior to 2016 and 10% of royalty is collected as DMF from
the leases granted through auction for which the lessees are paying average additional
periodic payments/additional periodic payments. The details are given in the Table 7.21.

Table 7.21 : District wise details of approved action plans under DMFT fund from 2015-16 to
2022-23 (up to Nov-2022) (Rs. in Crores)

DMF
Approved No. No. of No. of
Collection 85 % Total No. of
Sl. Action Amount of on project projects
District from 2015- Available No. of projects
No. plan Spent going yet to scrapped/
16 to Nov- Amount Projects completed
Amount projects start cancelled
2022

1 Ballari 1741.04 1479.89 1593.68 527.20 1549 190 767 264 328

Vijaynagara
2 438.74 372.93 631.38 269.58 1164 206 522 246 190
(Hospete)

3 Kalaburagi 475.48 404.16 540.84 101.23 1343 168 880 248 47

4 Chitradurga 388.50 330.23 319.40 211.78 304 162 89 44 9

5 Bagalkot 99.48 84.56 114.10 69.34 349 61 214 71 3

6 Koppal 61.54 52.31 88.91 39.53 466 131 158 177 0

7 Raichur 52.49 44.61 70.23 35.57 178 99 42 6 31

8 Chikkaballapura 53.93 45.84 78.03 23.91 146 61 44 12 29

9 Ramanagara 47.34 40.24 27.51 22.34 487 118 286 35 48

10 Bangalore Urban 47.74 40.58 76.35 31.21 607 65 349 171 22

11 Tumkur 43.67 37.12 49.96 31.04 791 28 206 369 188

12 Belgaum 40.14 34.12 29.43 24.95 265 204 38 23 0

13 Bangalore Rural 36.27 30.83 36.86 19.22 882 468 285 104 25

14 Chamarajanagar 28.89 24.56 23.45 9.72 59 18 10 23 8

15 Hassan 18.05 15.34 11.63 9.24 321 51 257 5 8

16 Uttara Kannada 13.51 11.48 7.62 6.89 97 6 84 1 6

17 Kolar 13.25 11.27 5.93 2.63 160 78 82 0 0

Dakshina
18 12.12 10.30 1.66 1.36 52 8 41 3 0
Kannada

19 Chikkamagaluru 12.86 10.93 7.02 5.17 122 49 46 3 24

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DMF
Approved No. No. of No. of
Collection 85 % Total No. of
Sl. Action Amount of on project projects
District from 2015- Available No. of projects
No. plan Spent going yet to scrapped/
16 to Nov- Amount Projects completed
Amount projects start cancelled
2022

20 Udupi 11.95 10.16 4.60 4.31 132 26 91 11 4

21 Gadag 8.84 7.52 4.94 3.44 93 30 33 30 0

22 Dharwad 7.95 6.76 6.94 3.04 128 2 20 106 0

23 Mandya 7.33 6.23 6.56 3.88 107 71 6 30 0

24 Haveri 6.70 5.70 7.88 1.74 122 9 12 99 2

25 Davanagere 6.34 5.39 5.32 5.10 14 4 10 0 0

26 Vijayapura 5.46 4.64 4.49 2.29 33 7 6 20 0

27 Shivamogga 3.13 2.66 0.57 0.28 19 0 10 9 0

28 Mysuru 2.64 2.24 1.77 0.10 8 6 1 1 0

29 Kodagu 1.58 1.34 0.67 0.05 14 1 1 12 0

30 Bidar 1.86 1.58 0.48 0.00 9 0 0 9 0

31 Yadgir 1.41 1.20 0.37 0.31 11 0 11 0 0

Covid -19 Activities Amount Spent up to November-2022 204.52

Grand Total 3690.24 3136.71 3758.57 1670.97 10032 2327 4601 2132 972

7.3.12 Rule 18 of DMF Amendment Rules 2018

1. 10% of the fund is earmarked for endowments purpose (as amended on 08.03.2018)
after closure of mining activity in the affected areas.
2. 5% of the funds from DMF is earmarked for administrative purpose, out of which 4% is
to be utilized for the administrative purpose at the District level and remaining 1% is to
be transferred to the Director, Mines and Geology Department for the maintenance
of the State Level Monitoring and Evaluation Cell and to meet the administrative
expenses.
3. Remaining 85% shall be utilized for implementation of projects and schemes
prescribed under Pradhan Mantri Khanij Khsethra Kalyan Yojana (PMKKKY) in the
ratio of 60:40, for high priority areas and other priority areas, respectively.
The following are the high priority areas (60%) for utilization of funds:

1. Drinking Water Supply

2. Environment preservation and pollution control measures
3. Health Care
4. Education
5. Welfare of Women and Children
6. Welfare of Age old and disabled people
7. Skill development
8. Sanitation

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The following are other priority areas (40%):

1. Physical infrastructures
2. Irrigation
3. Energy and Watersheds developments
4. Other measures for enhancing environmental quality in mining area
7.3.13 Combating Covid – 19:

Government of India order dated:28.03.2020 and 25.08.2021, provision has been made
for purchase of necessary medical equipment, medicine and oxygen machine and
cylinder etc. to prevent the spread of Covid-19 virus. Accordingly letter dated 28.03.2020
and 31.03.2021, 30% of the balance amount of DMF fund can be utilized for prevention of
Covid-19 virus.

Details of the schemes undertaken as per Pradhan Mantri Khanij Khsethra Kalyan Yojana
Guidelines and Rule 18 (3) of DMF T 2016 are given in the Table 7.22.

Table 7.22: Details of schemes implemented under Pradhan Mantri Khanija Kshetra Kalyan
Yojana from 2015-16 to 2022-23 (Nov-2022) (Rs. in Crores)

No. of Action Plan

Sl. Details of projects Number of Amount
projects Approved
No. under implementation Projects spent
completed Amount
1 Drinking water supply 1,353 637 551.98 131.18

2 Education 3,333 1,593 573.60 306.60

3 Energy & water shed 349 229 82.15 45.38

development

4 Environment prevention 158 39 88.57 40.64

and pollution control
measures

5 Health care 602 237 475.49 209.99

6 Irrigation 80 43 98.36 43.54

7 Any other measures 127 26 56.35 25.76

for enhancing
environmental quality in
mining district

8 Physical infrastructure 1,820 768 1,034.38 501.39

9 Sanitation 516 204 144.07 59.17

10 Skill development 642 202 61.44 32.77

11 Welfare of aged and 129 82 30.26 14.64

disabled persons

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No. of Action Plan

Sl. Details of projects Number of Amount
projects Approved
No. under implementation Projects spent
completed Amount
12 Welfare of woman & 917 541 134.19 55.39
children including on
their nutrition

13 Yet to decide (6 Districts) 6 0 427.73 0.00

COVID 19 Expenditure up to 31st November-2022 204.52

Grand Total 10,032 4,601 3,758.57 1,670.97

7.3.14 Comprehensive Computerization of Mineral Administration:

The mineral administration of the Department of Mines and Geology is computerized

through the ILMS software. To track all mineral transport vehicles from the centralized
tracking platform, government has given permission to develop the One State One GPS
software. Action has been initiated to develop the software, same will be implemented
within 3 months.

Steps have been taken to integrate weigh bridges of stone crusher units in ILMS software
to prevent leakage of royalties and to implement ILMS-2.O with modern technology and
innovative facilities.

The Integrated Lease Management System registration details for the year 2021-22 and
2022-23 up to December are given in the Table 7.23.

Table 7.23: The ILMS Registration details of Major Mineral

Particulars 2021-22 From 01.04.2022 to 27.12.2022

Total No of Leases 1 1
Total no of Beneficiation plant 1 2
Total no of Weighbridge 13 32
No of weighbridge integrated 13 27
Total no of buyers 556 419
The ILMS Registration details of Minor Mineral
Total No of Leases 484 444
Total no of Crushers 280 176

7.3.15 As per the order of the Hon’ble Supreme Court in WP No:562/2009

dated:20.05.2022, the following changes have come into force.

1. Disposal of iron ore produced by mining lease holders is exempted from auction
through Monitoring Committee.
2. Mining lease holders are free to sell the iron ore produced to the mineral based
industries in the market/long term agreements.

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3. Mining lease holders can export the iron ore.

4. The iron ore available in the mining lease area and stockyard can be disposed without
auction.
In view of the above order of the Hon’ble Supreme Court, the State Government has
issued a revised guidelines vide letter dated:23.06.2022 and accordingly permits are
being issued to the lease holders for export and sales to the mineral based industries.

In view of the above, the dispatch of iron ore sold through e-auction from the Monitoring
Committee appointed by Hon’ble Supreme Court is compiled till 20.05.2022 (including
the year 2020-21, 2021-22) are shown in the Table 7.24.

Table 7.24 : e-Auction details of Iron Ore

Sl. 2022-23 (01.04.2022

Particulars 2020-21 2021-22
No. to 20.05.2022)
1 e-auctioned Quantity 29.222 MMT 33.380 MMT 3.162 MMT
2 Material value of e-auctioned iron ore 8194.66 Cr 13344.85 Cr 1237.03 Cr
3 Royalty @ 15% paid to DMG 1218.86 Cr 1983.45 Cr 235.97 Cr

7.3.16 Implementation of R&R Plan for mining-affected districts:

As per the Hon’ble Supreme court orders dated:05.08.2011 and 26.08.2011 in S.L.P (civil)
No. 7366 & 73¬67/2010 & WP(C) No. 562/2009 the State is committed to develop and
implement suitable Reclamation and Rehabilitation (R&R) plans for mining affected
districts of Bellary, Chitradurga and Tumkur. The State Government has assigned this
task to the Indian Council of Forestry Research and Education (ICFRE). The main objective
of the project is to prepare R&R plan and to implement the plan after the approval of
mining leases by the Central Empowered Committee (CEC). Based on ICFRE’s R&R plans,
the Central Empowered Committee (CEC) has approved R&R plans for 97 out of 98 R&R
plans submitted by ICFRE (‘A’ & ‘B’ category mines). ICFRE has prepared R&R plans of 28
‘C’ category mines till date (Out of them, 25 are approved by CEC). The Hon’ble Supreme
Court in its order dated:20.04.2012, has directed the Ministry of Environment and Forests
to re-visit the statutory clearances earlier granted by it in the light of R & R Plan and in its
Order dated 03.09.2012, 28.09.2012 & 18.04.2013 has allowed mining operations in category
‘A’ and category ‘B’ mines to resume mining operation after the clearance of the R&R
plan by CEC and after obtaining other statutory clearances from various organizations.

7.3.17 The broad objectives/parameters of R&R plan are as under:

1. To carry out time bound implementation of R & R plan in the area under illegal
mining by way of mining pits, over burden/waste dumps etc. outside the sanctioned
lease area as well as within the lease area.
2. To ensure scientific and sustainable mining after taking into consideration the mining
resources assessed to be available within the lease area as per IBM and CEC approval.
3. To ensure environment friendly mining and related activities and complying with the
various standards stipulated under the various environmental /mining statues e.g. air
quality, noise / vibration level, water quality, scientific over burden/waste dumping,
stabilization of slopes etc.

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4. For achieving 2 and 3 above, fixation of permissible annual production.

5. Regular and effective monitoring and evaluation.
ICFRE has submitted 98+28 (i.e A, B + C category mines) Reclamation and Rehabilitation
(R & R) reports on mining leases. The permissible production for all mining leases is 51.8619
MMTs of Iron Ore per annum (after enhancement considered by CEC) and 0.487 MMTS of
Manganese ore per annum. Hitherto CEC has approved R & R plans for 97 (A+B) mines.

The production limit is going to be revised as and when ICFRE submits its R & R for
additional A,B,C categories of mines or production cap for existing mines are getting
enhanced after due approval of CEC.

7.3.18 New Initiatives by the State Government

In order to formulate the Karnataka Mineral Policy 2021-2026 keeping in mind the objectives
and the future target set out by the department, the Government had constituted a
committee under the chairmanship of Mr. K.N Srivatsav I.A.S., (Retd) comprising the
subject experts and resource persons vide order No: CI 69 MGS 2021 Bangalore, Dated:
08.07.2021. The said committee has submitted a report to the Government on 14.07.2022
after having several meetings.

A cabinet sub-committee has been constituted on 16.11.2021 under the Chairmanship of

Sri. Achar Halappa Basappa, the Hon’ble Minister of Mines and Geology to review and
make suitable recommendations to the cabinet on the simplification of the rules to
enhance the availability of M-Sand and building stone. Finalization of draft Karnataka
Minor Mineral Concession Amendment Rules based on the recommendations of the
Cabinet Sub-Committee is under progress.

The Government intends to find solution for many problems faced by the mining industry
and promote environmental friendly, systematic, scientific, sustainable and safe mining
practices including skill development for those engaged in mining activities by setting
up a center of excellence “School of Mines” in the State in collaboration with the mining
industry. In this regard, the committee formed under the chairmanship of Prof. H. P.
Kincha, retired Vice Chancellor has submitted a report to the Government. Accordingly,
the Government has constituted a committee for further implementation measures.

The DGPS-Drone survey of the quarry leases has been initiated with the assistance of
the Karnataka State Remote Sensing Application Center for scientifically assessing the
quantity of building stone extracted from the quarry leases to avoid the revenue loss
to the State exchequer. In this regard DGPS-Drone Pilot Survey Project with respect to
34 building stone quarry leases over an extent of 121.03 acres in survey no: 59 and 60 of
Sulivara village, Bengaluru south taluk, Bengaluru Urban district has been carried out.
Upon the success of the pilot survey, work order has been issued to Karnataka State
Remote Sensing Application Center on 24.11.2022 to carry out the Drone/DGPS survey of
building stone quarry leases of all the districts in the State to freeze the existing ground
level (Reduced Level).

7.3.19 Knowledge Partner

In view of improve the organizational restructuring, mineral governance and mineral

exploration in the department, M/s.Pricewaterhouse Coopers Private Limited (PwC) has

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been engaged through tender to assist/provide services as a knowledge partner. The

overall project cost is of Rs.135.00 lakhs (excluding tax) with the following works.
1 To design and implement a vision and strategic action plan for minerals exploration
and value addition in Karnataka State.
2. To scientifically assess and identify quality and quantity of various minerals on high
resolution maps. Based on that invite strategic global bids to extract and make value
addition within Karnataka state.
3. Develop strategic plan and handhold it’s implementation for organizational
restructuring of the Department of Mines and Geology, enable its high performance
and capacity building for complete digital governance.
4. Implementation of Single Window System for disposal of the application for grant of
Mining/Quarry lease and also vetting of State Mineral Policy 2021-26.
5. Modalities to be adopted for auction of limestone blocks by considering the nationwide
auction of limestone blocks.
6. Assessment of demand and supply of limestone mineral and capacity of existing
industries in Karnataka (District wise).
7. Strategy to be adopted in auctioning the Limestone blocks in order to attract
investments by new industries.
8. Pro’s and con’s of composite license and mining lease auction of Limestone in the
State.
9. Viability of investment on limestone exploration in the state and resulting in its
successful auction.
10. Handhold support for Establishment of School of Mining.
7.3.20 Mineral Law amendments by Central Government after 31.03.2021

oo Minerals (Evidence of Mineral Contents) Second Amendment Rules, 2021

Dated:14.12.2021
oo Mineral (Auction) Fourth Amendment Rules, 2021 Dated:14th December, 2021
oo Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession
(Second Amendment) Rules, 2021 Dated:8th April, 2021
oo Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Third
Amendment) Rules, 2021 Dated:10th June, 2021
oo Rescission of the Mineral (Non-Exclusive Reconnaissance Permits) Rules, 2015 Dated:
25.th June, 2021
oo Rescission of the Minerals (Transfer of Mining Lease Granted Otherwise than through
Auction for Captive Purpose) Rules, 2016 Dated: 2nd November, 2021
oo Rescission of the Mineral (Mining by Government Company) Rules, 2015 Dated: 2nd
November, 2021

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oo The Mineral (Auction) Third Amendment Rules, 2021 Dated: 2nd November, 2021
oo The Mineral Conservation and Development (Amendment) Rules, 2021 Dated: 03.11
2021.
oo The Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession
(Fourth Amendment) Rules, 2021 Dated:2.11.2021
oo The Mines and Minerals (Contribution to District Mineral Foundation) Amendment
Rules 2021 Dated: 25.06.2021.
oo The Minerals (Evidence of Mineral Contents) Amendment Rules, 2021 Dated:18.06.2021
oo The Mineral (Auction) Second Amendment Rules, 2021 Dated:18.06.2021
7.3.21 Salient features of Karnataka Minor Mineral Concession (Amendment) Rules,
2021 dated:15-11-2021

oo Provision has been made by removing the specified time limit for conversion of cases
that have been granted for stone quarrying into licenses in patta lands.
oo If minor minerals are available in the major mineral mining lease area, the Provision
has been made in the rule to allow for mining and transportation of such minor
minerals for the duration of the lease of the major mineral.
7.3.22 Implementation of New Sand Policy-2020

Towards ensuring the availability of sand to the common people at an affordable

price, the Government has formulated the new Sand Policy -2020. In this respect, the
Karnataka Minor Mineral Concession Rules, 1994 has been amended on 01.12.2021, and as
per Karnataka Minor Mineral Concession (Amendment) Rules, 2021 amended rule action
has been initiated to implement. The details are as follows;

oo A total of 353 sand blocks identified in the I, II & III order streams in the year 2021-22
and up to November 2022-23, out of which 300 sand blocks have been notified and
work order has been issued for extraction of sand in 246 sand blocks. 65 sand blocks
are in operational and disposed 24,082 MT of sand through Grampanchayat with
collection of Rs.22.22 lakhs.
oo 94 sand blocks identified in higher order streams and river course out of which 56
sand blocks has been given to Hutti Gold Mine Limited and 38 sand blocks has been
given to Karnataka State Mineral Corporation Limited. So far, 13 blocks have received
environmental clearance, sand mining will be started and will be supplied to the
public.
oo A total of 1,07,450 MT of sand has been removed by Karnataka State Minerals
Corporation in the year 2021-22 and upto November 2022-23 at Adyapadi in Mangalore
taluk and Shambhur dam in Bantwala taluk and Kindi dam in Bantwadi taluk of
Udupi district which is available with silt in the backwater, out of which 85,658 MT
sand has been supplied to public and government works through online booking
and collected Rs. 2.99 crore.

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oo In the year 2021-22 a total of 30.04 lakh MT of sand has been removed and transported
from 239 sanctioned sand blocks through tender-cum-auction, 118 sanctioned sand
blocks in patta land, 21 sand blocks granted for government works, sand reserve
areas under Gram Panchayat, sand extraction available with silt and clearing of sand
bars in river beds of CRZ areas. From this sand, Rs. 90.23 crore has been collected
which includes Royalty, additional periodical payment, average additional periodical
payment and District Mineral Foundation Fund.
oo In the year 2022-23 upto November a total of 20.87 lakh MT of sand has been removed
and transported from 179 sanctioned sand blocks granted through tender-cum-
auction, 125 license granted in patta land, 14 sand blocks granted for government
works, sand reserve areas under Gram Panchayat, sand extraction available with silt
and clearing of sand bars in river beds of CRZ areas. From this sand, Rs.56.23 crore
has been collected which includes Royalty, additional periodical payment, average
additional periodical payment and District Mineral Foundation Fund.
To maintain the ecological balance and adverse effect on groundwater, Government has
taken the measures to promote/increase the M-Sand production and utilization as an
alternate to river sand. Presently, M-sand is being produced in the 30 districts of the state.
By end of November-2022-23, 10.73 million MT of M-Sand has been produced against
annual target of 30 million MT.

Way forward

oo Setup processing industries in Ballari, Kalaburagi, Raichur and neighboring districts

to capitalize on high level of mineral production from the districts

oo Develop gem and jewellery industry to capitalize on the large production from the
state and generate employment opportunities in districts like Kolar, Chikballapura

oo Adopt advanced integrated exploration techniques to thoroughly explore deeper

deposits or deposits in the complex geological environment, including deposits
concealed in the offshore zone; State-of-the-art drilling techniques with sophisticated
rigs (such as RC) for three-dimensional sub-surface delineation of ore body as well
as for directional drilling and underground exploratory drilling are needed to be
employed.

oo Technology up-gradation in underground non-ferrous metal mining in respect of

sub-level stopping methods for improving productivity.

oo Modernize existing processes by adoption of automation, robotics, and industry

4.0 technologies will help to keep exploration, mining operations safe, optimize
production, scheduling and material flow and track exploration and maintain mining
performance in real times.

oo Develop Geo -Tourism Hub and Geo -Industrial park in Kolar, Hutti & Chitradurga etc.

oo Setup a Museum showcasing aspects of ancient to modern mining methods,

archeological aspects and objects across key sites

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7.4 CLIMATE CHANGE AND MITIGATION MEASURES

Strengthened as Karnataka State Strategic Knowledge Centre for Climate Change with
the support of Government of Karnataka & Government of India, Department for Climate
Change (DCC), EMPRI has taken forward several research activities/programs during
April-December 2022 as mentioned below:

7.4.1 Research Activities

A. On-going projects

1. District wise information brief on climate change impacts, adaptation and

mitigation strategies for Karnataka

The objective of the project is to prepare information briefs for each district of Karnataka
on the impacts of climate change on Agriculture, Health, Water resource and Forest
sector, including adaptation and mitigation strategies. Information brief contain general
details of the district, case study on recent extreme climate event, impacts of climate
change, adaptation and mitigation strategies that are followed in that particular district.
These information briefs serve as a ready document for the District Officials to take quick
decisions related to climate change.

2. Exploring the potential of terrestrial indoor plants for moderating the effect of
climatic conditions in urban areas

The objectives of the project were to measure the physiological performances of

different terrestrial indoor plants, assess the plant functional variability and biochemical
performances, identify the high carbon sequestering indoor species and build the
evolutionary relationship with the assimilation rate and protein-coding regions of
RuBisCO. The drafting of the report is under progress.

B. Completed Projects

1. Impact of Climate Change on Sericulture in Karnataka and Implementation of

Adaptation and Mitigation Technologies at Farmers Level

The current study was to see whether on a temporal scale the climate change (long term
change in 30 years) could really impact the sericulture. Overall analysis on a long term
scale shows that there is significant relation between rainfall / temperature and cocoon
productivity. There are many interventions and delineating the true impact of climate
change practiced by the farmers.

2. Estimation of Photosynthetic potential of dominant Mangrove species in different

osmotic environments

The study was undertaken to estimate the photosynthetic potential of dominant

mangrove species in different osmotic environments in Udupi district of Karnataka.
Rhizophora mucronata was the dominant species and is well-adapted to saline
environment. This study recommends planting different species of mangroves based on
its salt tolerance and adaptations, which would be attributed for waste disposal into the
marine water bodies.

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3. Exploration of Microalgae for Carbon Capture, Biomass Production and

Bioremediation

The present study has isolated a total of six microalgal cultures viz., Chlamydomonas,
Oocystis, Microcystis, Eudorina, Chlorella and Chrysocapsa from different sources and
tested for their growth efficiency using different solid and liquid media under the light
intensity of 45 µ mol m-2 s-1 and at temperature 28 ± 2°C.

C. New Projects

New project is initiated in collaboration with IIT Hyderabad on “Emission Reduction and
Energy Economy by electric vehicle on Indian Roads – Driving Cycle based study”. The
main aim of the study is to estimate the emission reduction potential within a region
through a substitution of conventional fuel driven vehicles with electric vehicles. The
study will help to understand the impact of EV penetration on vehicular emission and
will provide a sound basis for more detailed environmental assessment of E-mobility.

7.4.2 Projects under National/International Funding

Sanctioned a two year project on “Achieving Net Zero with development and other Co-
benefits” focusing on short lived climate pollutants (SLCP) in collaboration with Vasudha
Foundation India and The Energy Research Institute (New Delhi).

7.4.3 Report on State Action Plan

A report on State Action Plan on Air Pollution for Karnataka (SAPAP-K) is submitted to
Government of Karnataka.
7.4.4 Webinar/Workshop
A webinar on the Story of Ozone was conducted on 16 September 2022 and the speakers
from Department for Climate Change have made presentations.
Way forward
Karnataka State Action Plan on Climate Change (KSAPCC) Version 2.0 developed needs
to be implemented through sector-specific projects in the area of adaptation and
mitigation for disaster risk reduction, as the state is already experiencing increased
occurrence of floods and droughts and aspires to enhance use of renewable energy,
energy efficiency, water management, agricultural resilience, afforestation, efficient waste
management and use of public transport. Further, the Green Index Portal developed
to evaluate environmental compatibility of governmental schemes & programs for
a climate resilient developmental planning (https://greenindex.karnataka.gov.in/#/
login) may be considered for adoption in the budget development process in the state.
Furthermore, mainstreaming the Karnataka State Climate Change Strategic Knowledge
Portal (KSCCSKP) (https://www.karccc.com) to disseminate the information and data
on the climate related aspects of the state of Karnataka by creating awareness among
stakeholders like academicians, researchers, policy makers and the public will serve.

7.5 KARNATAKA STATE NATURAL DISASTER MONITORING CENTRE

Karnataka, one of India’s eighth largest state in terms of geographical area (19.1M. sq.km)
is home to 6.11 crore people (2011 Census) accounting for 5.05% of India’s population. It

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has the net cultivated area (2010-11) of 10.5 M Ha, net irrigated area of 3.49 M Ha and net
rainfed area of 7.01M Ha. Due to both spatial and temporal variation in rainfall, hydro-
meteorological disasters like droughts and floods occur simultaneously in the different
regions of the state. Droughts are more common than the other disasters in the state
thus affecting rain-fed Agriculture production system. The State also has huge arid and
semi-arid land and is highly vulnerable to drought. In the last 15 out of 20 years (2001-
2020), parts of the State have been subjected to severe drought. Some of the Talukas
in the State have witnessed drought for more than five consecutive years. Devastating
floods, hailstorm, Lightning and Thunderstorms has hit Karnataka during pre-monsoon
season frequently causing huge damage to standing crops, especially horticulture crops.

Losses due to Natural Calamities in the state for the past one Decade is detailed in
Table 7.25.
Table 7.25: Details of losses due to Natural Calamities in the state from 2012 to 2022
(Rs. in Crores)

Sl.
Details of Natural Calamities Estimated Loss As per SDRF Norms
No.
Due to Flood during July to 12th September
1. 12,406.65 1,944.44
2022

2. Due to Flood during 2021 18,293.10 2,123.50

3. Due to Flood during August-20 to October-20 23,764.86 2,261.38

4. Due to Flood during August-19 35,008.83 2,444.68

5. Due to Flood during 2018 4,262.09 722.70

6. Due to Drought during Kharif 2018 16,662.48 2,434.00

7. Due to Drought during Rabi 2018 11,384.47 2,064.30

8. Due to Drought during Kharif 2016 17,193.00 4,702.54

9. Due to Drought during Rabi 2016 7,097.89 3,310.83

10. Due to Floods during 2016 2,485.06 386.44

11. Due to Drought during 2015 15,636.07 3,830.84

12. Due to Drought during Rabi-2015 6,733.14 1,417.14

13. Due to Hailstorm during April-2015 to May-2015 711.32 151.28

14. Due to Drought during 2014 3,589.07 779.20

15. Due to Floods during 19th to 30th August 2014 615.39 388.29

16. Due to Drought during 2013 1,719.29 1,014.15

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Sl.
Details of Natural Calamities Estimated Loss As per SDRF Norms
No.

17. Due to Floods 2013 2,742.14 610.84

Due to Hailstorm during Feb-2014 &

18. 888.29 963.28
March-2014

19. Due to Drought during 2012 11,489.00 11,489.00

Total 1,92,682.14 43,038.83

7.5.1 Weather Monitoring Network:

Karnataka State Natural Disaster Monitoring Centre (KSNDMC), has taken up pioneering
and path- breaking initiatives towards monitoring natural disasters and risk reduction.
KSNDMC has established a network of GPRS enabled and solar-powered Telemetric Rain
Gauges at all the 6,500 Gram-panchayaths (25 sq. km each) and 923 Telemetric Weather
Stations at all the 747 Hoblis (sub- Tehsil : 200 sq. km each) and 176 Micro-Watersheds in
the state. The weather data comprising Temperature (⁰C), Relative Humidity (%), Wind
Speed (m/s), Wind Direction (Degrees), Rainfall amount (mm) and intensity (mm/hr) data
has been collected at every 15 minutes through these weather monitoring stations. The
density of weather monitoring stations network is the highest and first of its kind in the
country. Also, the temporal resolution of the data collected (96 data points a day/station)
through this network of stations is a need of the hour for the researchers to develop
simulations and related advisories. The monitoring network can capture the highly
erratic distribution of rainfall and weather parameters both in terms of space and time,
in turn it is helping the decision makers to take a timely decision at the micro level.

Telemetric Rain gauge Telemetric Weather Station

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Map Depicting the Network of TRG and TWS Stations In Karnataka

The Centre has established a state-of-the-art facility to collect data at a very high
spatial and temporal resolution, data analysis, information and advisory generation
and dissemination to the Stakeholders at a near-real-time. Necessary computer/web
applications have been indigenously developed to collect, store, analyse and transmit
reliable, accurate and seamless data with least manual intervention. As a result, the
time interval between data collection to decision making is almost at a near-real-time.
Based on the near real-time data collected, the Centre identifies and maps the hazard
vulnerable areas, prepares reports with advisories and disseminate to stakeholders.

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7.5.2 Rainfall disparity in Micro Level

The spatial distribution of rainfall is varies with various factors and local weather
phenomena. The collection of rainfall data at district, taluk and hobli level and it can
extended to micro level, it’s always there is large spatial difference with accuracy. The
collection of rainfall data at gram panchayat level a smaller administrative unit of state
help to take priority measure to manage and mitigate the disasters. The spatial variation
of rainfall data at various district, taluk, hobli and gram panchayat level is shown in below
Figure.

Spatial variation of rainfall data at various

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7.5.3 Weather Forecast

Weather forecast at very high temporal and spatial resolution is another critical segment
that enables to generate effective Meteorological advisory. The KSNDMC generates
Rainfall / Weather Forecast for the State every day in collaboration with national agencies
like Space Application Centre (SAC), Ahmadabad and Satish Dhawan Space Centre (SDSC-
SHAR), Sriharikota and Indian Space Research Organization (ISRO). Weather forecasts are
generated regularly with three different time scales, viz., Short term, Medium term and
Long term. The weather data observed on the ground is also ingested into some of these
weather forecasting models and it has been to be useful in correcting and improving the
Model output over the years.

Gram panchayat level next 3 days forecast model

7.5.4 Disaster monitoring at KNSMDC

1. Drought Monitoring: The near-real-time data collected through the network of

station is being used for monitoring and assessing Drought indicators at Hobli level
in the state on weekly basis. KSNDMC is monitoring and guiding the state executives
by providing technical reports and data support for sub cabinet committee, weather
watch committee, and state-district level meetings. The centre assessing the drought
condition and declaration of drought prone taluks as per revised drought manual
2019 based on various drought indicators of rainfall deficiency, dry spell, Moisture
Adequacy Index, Agricultural crop Status, remote sensing based NDVI, NDWI & VCI
Index and Surface & Groundwater Status on Standard Weekly basis during each
Season. Centre is also preparing the detailed report on drought conditions and
submit the memorandum for the central to seek financial support to take emergency
drought mitigation measures.

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2. Flood Monitoring : Flood is one of the most common and recurring Natural Disasters
in Karnataka, in the last decades. Large parts of North Interior Karnataka, which is
under Krishna River basin is prone to severe floods. Similarly, the Malnad region and
parts of South Interior Karnataka, which are in the Cauvery river basin, are also prone
to floods and associated with landslides/mudflows. Heavy and high-intensity rainfall
during the Monsoon season has been causing floods in one or the other parts of the
state resulting in loss of life, livelihood, property, enormous damage to the standing
crops, destroying critical infrastructure. The State is currently faced 4 consecutive
year of floods. Considering the recent flood severity over the state a dedicated Flood
Forecast Cell created at KSNDMC.
3. Urban Flood Management : An integrated Urban Flood Model for Bangalore City
(UFM) is being developed by Karnataka State Natural Disaster Monitoring Centre
(KSNDMC) in collaboration with Indian Institute of Science (IISc) Bangalore, to
manage floods in the city. An efficient forecast system with a well-established
network of 100 Telemetric Rain gauge Sensors and 12 Telemetric Weather Stations
with integrated two-dimensional flood model, along with 26 Water Level Sensors,
provides information on the spread of the floodwater (vis- à-vis flood inundation).
An automated information dissemination Web Portal www.varunamitra.karnataka.
gov.in and a Mobile app named Bengaluru Meghasandesha has been developed to
disseminate relevant information to stakeholders.

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4. Thunderstorms and Lightning Monitoring: Lightning strikes have been causing loss
of life and property in Karnataka as well. Apart from the loss of life, there is a huge
loss of livestock as well as infrastructure due to lighting strikes in the State every year.
To mitigate the losses due to Lightning strikes in the State, the centre has taken up
monitoring and early warning through a network of 11 Lightning Detection Sensor
stations in the State to provide location-specific Early Warnings to the Government
Executives and general public across the State about the Thunderstorms and
Lightning strikes.

Thunderstorm & Lightning Network

5. SEISMIC Monitoring: To address the Seismicity in the State, KSNDMC has established
a Network of 14 VSAT Enabled and Solar Powered Permanent Seismic Monitoring
Stations at different vulnerable locations in the State. The data pertaining to these
14 Seismic Stations is being received to the Master Control Facility (MCF) located
at KSNDMC, Bengaluru in Real Time through VSAT & GPRS Technologies. Through
this Network of Stations in the State, KSNDMC is monitoring Local, Regional and
Teleseismic Earthquakes. Technical support in terms of providing Earthquake
information through SMS followed by Technical Reports are being provided to the
Stakeholders of GoK and the Dam Authorities for taking up mitigation measures
accordingly.
6. Implementing Insurance Schemes: The high-resolution weather data collected from
the ground level has been used for the implementation of Crop Insurance Scheme in
the state which is considered as a risk transfer mechanism. The weather data is used
at different levels. First, it is used in designing the Term-sheets in case of Restructured
Weather Based Crop Insurance Scheme (RWCIS), wherein area-specific and crop-
specific term sheets are designed by using high-resolution historical weather data
by the agencies. Similarly, the ground-level weather data is also being used by the
public for claiming insurance for the damage/loss of property incurred due to weather
aberration. Incidences of damage to industrial sheds or the chimneys due to high
wind activity are being established and assessed using the weather data collected
from the TWS station network. Likewise, damages to the poly-houses installed for
floriculture and/or cash crop cultivation are also assessed using the weather data.
The observed data from the nearby TWS or TRG station is used to corroborate the
incidence of weather aberration beyond a threshold, and accordingly, insurance
claims are being settled between the parties.

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7. Heatwave: Heatwave is a condition of atmospheric temperature that leads to

physiological stress, which sometimes may cause death. In the past two decades,
certain parts, especially the North Interior Karnataka region of our State, have witnessed
increasing temperature trends during the March-June period. Consequently, heat
stress-related illnesses are also on the rise. In this context, KSNDMC along with
KSDMA has developed Heat Wave Action Plan 2022 under the NDMA Guidelines. The
Action plan aims to provide a framework for implementing heat response activities,
preparedness and mitigation measures in a coordinated manner with various line
departments of Karnataka.
8. Landslide: Due to incessant and high intensity rainfall in Malnad and Coastal districts
of Karnataka caused landslides. The Karnataka witnessed the 4 consecutive years
landslide in parts of Malnad and coastal district and massive landslides during 2018
in parts of Kodagu district caused the huge loss of agriculture, horticulture crops,
public infrastructure and amenities. KSNDMC framed the action plan and mitigation
measures for Landslide risk reduction.
9. Cyclones: Cyclones are one of the natural calamities that are formed as a result of
temperature and variation wind circulation on the water surface of seas/oceans.
Frequent storms are common in India’s east coast i.e. Bay of Bengal. The west coast
was less prone to cyclones, but in recent years increasing number of cyclones in the
Arabian Sea is a matter of concern. In recent years reported cyclones of Taukhte, Yash,
Gulab and Asani (2021) and more recently Modus (2022) caused the massive damage
of infrastructure, loss crops and public property due heavy rains and winds. Under
National cyclone Risk Mitigation Project the Karnataka state taken the strategic
actions plans for cyclone risk reduction and management.
10. Water Resource Management: The centre has been collecting, updating and
maintaining the water resource data sets inflow and outflow details of reservoirs, status
of minor irrigation tanks and groundwater level details on weekly and monthly basis.
The analysis of water resource and mapping in the state, helps to management and
allocation of water resources for irrigation, drinking water supply and management
of flood and drought conditions. Also, the center is providing necessary information
on river water sharing disputes.
11. Cloud Seeding: Drought conditions are common in the state. To alleviate and
management of drought conditions the state government initiated the cloud
seeding programme during the drought condition to manage soil moisture for early

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sowing crops and drinking water scarcity in drought prone areas. The cloud seeding
is purely scientific, and depends on stubble formation and climatic factors. Based on
the weather condition and forecast the centre delineate the drought prone regions
and suggesting the suitable regions for cloud seeding and estimate the incidents of
rainfall at gram panchayat level telemetric rain gauges on cloud seeding regions.
12. Information Dissemination Mechanism: Information Dissemination plays an
important role in disaster risk reduction. KSNDMC has employed various Dissemination
systems to send Disaster-related information through Alerts, Advisories and Early
Warnings to all the Government Executives & Communities at Real time. High
Spatial and Temporal resolution data thus collected from the ground on various
parameters are being converted into information. Subsequently, in conjunction with
the weather forecast, the meteorological information is used to generate customized
weather Advisories and disseminated to the users. This has enabled the stakeholders
at all levels to take appropriate decisions at right time in the domain of Drought
Monitoring & Management, Crop Assessment Survey Mechanism, Water Resource
Management. Implementing Insurance Schemes and Power generation and Grid
load management.
Currently, KSNDMC is providing natural disaster and agricultural development-
related information through help desk, general radio service, Very Small Aperture
Terminal and other methods. The centre serves agriculture, horticulture, fisheries,
transportation, power and electricity sectors, disaster management agencies and
other beneficiaries through web-enabled database management, application
development and customization. Information is also disseminated to the field level
officers of the Department of Agriculture, Horticulture, Animal Husbandry, Sericulture,
Water resources, Raitha Samparka Kendras (RSKs), Farmer’s facilitators under Soil
Enrichment Program, Krishi Vigyana Kendras (KVKs), and Agriculture Universities,
besides Print and Electronic Media.

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13. Integrated Disaster Management System: Karnataka State Natural Disaster

Monitoring Centre has taken priority measure to monitor and managing the
disasters in Karnataka in collaboration with KSNDMA. The main 7 factors of disaster
management of Policy and planning, community participation, institutional
Strengthening, Levering technology, faster relied and rescue, monitoring and review
and central assistance.

Main Components of Disaster Management

Under the main 7 policies of disaster management the centre framed the gram panchayat
level disaster management plan and it has been implemented in the state. GPDM plan
which helps disaster preparedness and management, also promote local community
participation. Levering technology and Scientific based disaster management plays and
important role in timely precaution, emergency decisions, and for communication and
information dissemination. Geo-Spatial Technology Based District Disaster Management

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Plan, Centralized Wireless Public Broadcasting System At Vulnerable GPs (EWS), Real
Time Decision Support System (RTDSS) for flood early warning system in Krishna River
basin - Karnataka. Projects are under progress.

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Strengthening of institutional bodies and capacity building in disaster management

helps in emergency relief and rescue operations, and protect of public life and properties.
Structuring Emergency operation Centre, pre deployment of NDRF, SDRF with
necessary rescue equipment’s are crucial role in disaster risk reduction. Flood Forecast
Cell is established in the centre for localised flood and weather forecast and for reservoir
operation during the flood situation Inter-state integrated Reservoir Management in
collaboration with central water commission is initiated effective flood management in
the state.

Preventive disaster management and monitoring measures can significantly reduce the
effects, damage and losses caused by disasters. In this regard, Monsoon Preparedness
Meetings, Flood/Weather watch Meetings, Inter-Ministerial Review Meetings are being
taken up with various line departments on regular basis to precautionary measures and
decision making. The Centre is providing timely information and inputs for the meeting.

The centre preparing and submitting the memorandums to central government

seeking the necessary financial assistance for emergency rescue and relief operation
due to calamities in the state and providing the technical inputs and reports for inter-
ministerial team for evaluation of loss and damages due to various disasters. The Center
has developed and implemented Geo-spatial technology-based Karnataka State Disaster
Management Information System (KSDMIS), a first in the country, to enable district
administrations to register real-near timely information with geo-stamped verification of
loss and damages due to disasters and to carry out relief work with utmost transparency
without delay and manual interference.

14. Community Help-Desk “Varuna Mitra”

To disseminate the Agro-Met information, forecast and advisories directly to the farmers,
a 24x7 Interactive Help Desk “Varuna Mitra” has been put in place in Karnataka at
KSNDMC. Some of the unique features of this dissemination model are;-

1. The farmers can get the information on what they need and when they need.
2. Provides Agro-Met Advisories directly to the farmers through interactive telephony in
the language and frequency a farmer can comprehend.
3. Information on rainfall, temperature, humidity, cloud cover, wind speed information
and
4. forecast is made available (highest spatial resolution in the country at present) at the
Gram Panchayat level.
5. The information and Advisories are based on high spatial and temporal resolution
ground- level weather observation and same resolution weather forecast.
6. Alerts on extreme weather events, information on reservoir status, streamflow etc.,
are also made available to the users.
7. Voice recording of each call is used to improve the service and also to address the
complaints.
The farmers have been calling Varuna Mitra and collecting customized information
pertinent to their respective Gram Panchayats and using the information and advisories

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for planning their agricultural activities encompassing land preparation, sowing, inter-
crop cultivation, application of fertilizers, spraying pesticides and harvesting. Though it
is not a Toll-Free service, the number of calls have been increasing annually and lakhs of
farmers are seen to be benefitting from the VARUNA MITRA Services.

7.5.5 Impact Evaluation of ‘Varuna Mitra Services’

A team of researchers from the Institute for Social and Economic Change (ISEC),
Bengaluru has carried out a study to evaluate and assess the impact of Varuna Mitra
help desk services on the farmers. Through multi-stage random sampling technique, the
assessment was carried out by directly contacting the farmers in three districts in three
different regions with High Rainfall (>1200mm), Moderate Rainfall (600-1200mm) and
Low Rainfall (<600mm) based on the annual rainfall which represents 8 of the 10 agro-
climatic zones of Karnataka. The farmers who obtained information from Varuna Mitra
helpdesk service were randomly interviewed using a pre-tested questionnaire. Apart
from farmers, other stakeholders were also interviewed to assess the impact of Varuna
Mitra more comprehensively.

In this evaluation, the impact of Varuna Mitra services was assessed on the cost of
cultivation, yield, income and post-harvest losses considering two situations, namely,
with and without weather information from KSNDMC. Overall impact was estimated by
aggregating the stage-wise impact to arrive at per acre and per farm impact by using
the information provided by Varuna Mitra. The results showed that the performance of
the Helpdesk has been impressive.

This also stood substantiated from the increase in the number of calls since its inception
from a low of 0.1 lakh in 2011 to 18.8 lakh in 2022. In terms of the pattern of calls during the
drought years, it was found that the number of calls increased with the increase in the
number of districts experiencing drought.

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Among the queries made about 99.53 per cent were about rainfall and/or weather-
related which is a very crucial input for planning or executing agricultural operations
and securing the standing crop. The sub-sectoral analysis of the purpose for which the
calls were made, it was seen that majority of the farmers sought information relating to
agriculture (90.39 per cent), followed by horticulture (8.65 per cent), animal husbandry
(0.39 per cent) and sericulture (0.57 per cent). Each farmer fetching information from
Varuna Mitra, in turn, shared it with at least 12 farmers in his/her area. A majority of the
farmers sought short term rainfall forecast for one to three (1-3) days and indicated a
wide range of accuracy levels of these predictions. An overwhelming proportion of
farmers (62.50 per cent) indicated that the accuracy of prediction realised was to the
extent ranging from 60 to 90 per cent.

Farmers had interacted with Varuna Mitra at different stages of crop cultivation from
sowing to harvesting. Of more than 2000 farmers contacted for this exercise, 49 per cent
reported a decrease in input cost, 49.70 per cent reported increase in yield, 53 per cent
reported an increase in net income and 40 per cent reported decrease in post-harvest
losses.

The weather data comprising Temperature (⁰C), Relative Humidity (%), Wind Speed (m/s),
Wind Direction (Degrees), Rainfall amount (mm) and intensity (mm/hr) data has been
collected at every 15 minutes through these weather monitoring stations.

The density of weather monitoring stations network is the highest and first of its kind in
the country.

The weather monitoring network can capture the highly erratic distribution of rainfall
and weather parameters both in terms of space and time, in turn it is helping the decision
makers to take a timely decision at the micro level.

Based on the near real-time data collected, the Centre identifies and maps the hazard
vulnerable areas, prepares reports with advisories and disseminate to stakeholders.

Way Forward

oo To benefit the agricultural and allied sectors in the state, Karnataka State Natural
Disaster Monitoring Center is establishing and maintaining a unique network of
automated, solar based, remote wea ther and rainfall measuring instruments in the
state to understand the accuracy of variations in climate and rainfall distribution.
oo Attempt has been made to Collect information regarding temperature (0 C), humidity
(percent), wind speed (m/cm) and wind direction (0) from meteorological stations and
also rainfall (mm) and intensity (mm/hour) from all rain gauge stations are collected
for every 15 minutes / day.
oo Innovative measures have been taken up to provide real-time weather information,
maps, reports, warning messages, weather-based agricultural advisory notices to the
officials of the relevant government departments and the public and the farming
community to help them take necessary precautionary measures and decisions.

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oo To determine drought conditions, the Ministry of Agriculture, Ministry of Cooperation

and Farmers Welfare, Government of India has brought out the revised Drought
Management Manual 2016 which includes scientific criteria for drought determination
and aspects of drought management in order to accurately identify drought
conditions and take timely remedial measures.
oo In order to determine area drought situation, based on Moisture Deficit Index
measures have been taken to give the accurate rainfall and whether data.
oo Measures have been taken to use Satellite based indices to improve the accuracy of
drought conditions, sown area, crop growth and crop status etc.,
7.6 WASTE MANAGEMENT IN KARNATAKA: REALITIES AND OPPORTUNITIES

7.6.1 Solid Waste Management in Karnataka

Solid Waste (SW) generation in an inevitable consequence of rapid urbanization,

population explosion, changing lifestyle and modernization. Solid Waste Management
(SWM) is efficient collection, transportation, processing, recycling and disposal and
monitoring of waste and its impact on environment.

SWM is one of the major challenges all over the world and in India. About 72 million
Tons of SW is generated in the country, of which 43 million Tons are collected and only
12 million Tons of waste is scientifically treated. Balance quantity of 31 million Tons is
dumped in landfills without any treatment. Unscientific Land-filling of Municipal Solid
Waste (MSW) generates huge quantity of leachate, which contaminates water. Most of
the Urban Local Bodies (ULBs) adopt land-filling as the option for disposal of SW, which is
linked to water contamination, generation of greenhouse gases beside odour nuisance.

oo Current Status of Solid waste Management in Karnataka

The Karnataka State Pollution Control Board (KSPCB), is fortifying scientific MSW
management in Karnataka by enforcing the SWM Rules 2016. About 11,044 Tonnes Per
Day (TPD) of MSW is generated in the state, of which 50-55% is wet/organic waste, 30-35%
is dry waste and 10-20% is C&D and inert wastes. By 2031, the municipal SW generation in
Bengaluru alone is projected to exceed 13,000 TPD.

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District-wise Total Waste Generated

in Karnataka (TPD)

The SWM Rules 2016, 4(a) mandates door-to-door collection, proper segregation,
transportation and disposal of SW in all the ULBs. Most of the districts have successfully
achieved a high percentage of door-to-door collection and some local bodies have
adopted strategies such as pipe composting, community composting for efficient
management of segregated wet waste. Appendix 7.4 gives district wise status of SW
management in the State.

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oo Wet Waste Management

At present, out of 5743.7 TPD wet waste generated in Karnataka, only 4011.8 TPD is
converted into 424.77 TPD of compost, which is sold to farmers at a price of Rs 5/Kg, in
coordination with the Department of Agriculture. The Districts like Bengaluru, Dakshina
Kannada, Shivamogga, Mysuru, Belagavi and Dharwad generates more than 20 TPD of
compost from organic waste, whereas, Ballari, Bengaluru Rural Raichur, Yadgir, Kodagu,
Chamarajanagar, Mandya, and Chitra Durga generates less than 5 TPD.

If 2399 TPD of organic waste generated in Bengaluru is composted, it can produce 218
TPD of compost, corresponding to revenue of Rs.11.00 lakh per day. 3344 TPD of wet-
waste generated in ULBs other than Bengaluru limits can produce around 300 TPD of
compost corresponding to an income of Rs.15.00 lakh per day. Only 55% of wet waste is
converted into compost in the state and there is lot of scope to improve.

District-wise Gap in MSW processed

in Karnataka (TPD)

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oo Dry waste Management

Bengaluru generates about 1167 TPD of dry waste. Of this, 612 TPD is recycled and 3.3 TPD
is sent to cement kilns. Remaining 551.7 TPD, 47.26% of the total dry waste generated,
ends up being land-filled. Overall, Karnataka generates about 3237 TPD of dry waste.
Out of which, 1114.8 TPD is recycled and 215 tonnes is converted into Refuse Derived Fuel
(RDF) and 118 TPD is sent to cement kilns for co-processing in cement industries, as a
source of energy. Only 44.7% of the dry waste generated is recycled, while the remaining
quantity of 1790 TPD ends up in landfill or waste dump.

RDF produced from the dry waste generated from domestic and commercial activities
includes biodegradable and non-biodegradable combustible materials. RDF with a
calorific value higher than 2000 Kcal/Kg would form a good alternative source of energy
in cement industries or it can be incinerated in waste-to-energy plants. Further, in the
‘Guidelines on Usage of RDF in Various Industries’ by the Ministry of Housing and Urban
Affairs, RDF has been valued at a suggestive price of Rs.600.00 to Rs.2400.00 per tonnes,
which could form a continuous revenue source for ULBs.

Districts like Bengaluru Urban, Mysuru, Shivamogga, Dakshina Kannada, Belagavi,

Bagalkot, VijayaPura, Uttara Kannada and Kalburgi recycle more than 40 TPD of dry waste.
However, in districts like Bengaluru Rural, Dharwad, Kodagu, Davangere, Chikkaballapura,
Mandya, Chamarajanagar, Hassan, Chikkamagaluru, Raichur and Koppala recycle of dry
waste is inadequate. BBMP has proposed major projects of ‘Waste-to-Energy’, which are
in the early inception stages. There is a large scope for valorising the remaining of dry
waste, which is otherwise land filled and causes a serious environmental problem.

Way Forward

Considering the fact that the resources for waste management and disposal methods
are scarce, strategy for efficient scientific management of MSW must necessarily pivot
towards resource recovery, thereby making waste a valuable component. The hierarchy
of waste management could be optimised by adopting the “5R” option i.e., Reduce,
Reuse, Replenish, Recycle and Recovery.

There is a need to evolve policy for Circular Economy (CE) for SWM to replace the linear
economy of ‘take, make, use and dispose’ and reduce environmental burden.

Imposition of user fee is expected to ensure proper segregation and enhance income to
the ULB for development of infrastructure for integrated waste management facility that
reduce environmental burden of unscientific disposal of solid waste. Further, economic
earnings from segregation of waste & converting it into useable materials like compost,
energy etc is expected to boost the incomes of ULB.

ULBs may also propose imposition of User Fee as per Rule 3(54) of SWM Rules 2016
on the waste generation to cover full or part cost of providing solid waste collection,
transportation, processing and disposal services. Pertaining to C&D waste, Section 4(5)
of C&D Waste Management Rules 2016 mandates that every waste generator generating
more than 20 TPD or 300 TPM shall have to pay for processing and disposal of C&D waste.

Imposition of user fee for SWM in the BBMP area is expected to generate an income of
Rs.870.00 crore per annum. Similarly, imposition of user fee for C&D waste management

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can generate 100.00 crores per annum. Apart from the user fee, converting wet waste
into compost could generate up to Rs.44.00 crores per annum and converting dry waste
into RDF will generates about 16.00 crores per annum. The total expected income from
imposition of user fee for SWM and C&D waste and SWM processing in Bengaluru alone
is around Rs. 1030.00 crore.

Strategies for effective Solid Waste Management

oo Integrated MSW management to ensure safe and environmentally sound disposal of

waste.
oo Encourage decentralized collection centres as mandated by MSW Rules 2016,
Section 3(15) to process dry waste to avoid contamination by wet waste and minimize
transportation.
oo Set up advanced wet waste processing units for composting and bio-methanation.
oo Sensitize general public about effective SWM techniques and create awareness
regarding the consequences of poor waste management.
oo Establish source segregation of MSW through performance-based incentive scheme.
oo Minimize the gap in generation and processing of MSW by emphasizing 5 R’s of
waste hierarchy i.e. ‘reduce, re-use, recycle and recover and replenish (disposal) as
mandated by MSW Rules 2016, Section 3(57).
oo Adopt environmentally sound technologies like composting, bio-methanation, RDF
and waste to energy initiatives.
oo Boost the incomes of ULBs through earnings from effective MSW processing like
recycling, composting, and RDF.
oo Set up zone-wise segregation and processing facilities to ensure 100% processing of
MSW and minimize land-filling.
oo Reduce transportation of MSW to minimize the dependence on fossil fuels and
impact on air quality.
7.6.2 Sewage Management in Karnataka

Pollution of water bodies due to untreated sewage discharge resulting from urbanisation
and industrialisation has emerged as key area of concern in the recent past and resulted
in severe adverse impacts on environment and human health.

In India, untreated sewage discharge contributes to 70% of water pollution. Karnataka

State contributes 6% of India’s total sewage generation. State with 67 million people,
generates approximately 3357 Million Litres per Day (MLD) of sewage, which is expected
to increase in the coming years. Hence there is a need to prepare comprehensive
sustainable policy for effective sewage management along with treated water recycle
policy. Sewage management is expensive and poses problems for finance. Imposing
tariffs/user charges for consumers fulfils three basic functions: (i) public resources can
be judiciously used for other specific purposes; (ii) boosts effectiveness, by linking the
revenues collected to the service provided; and (iii) generates a clear signal to users about
the real cost of the service, encouraging rational consumption.

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District-wise sewage
generated in MLDs

oo Current status of sewage management in Karnataka

Bengaluru with a population of about 8.5 million generates 1440 MLD of sewage from
domestic establishments and Bangalore Water Supply and Sewerage Board (BWSSB) is
responsible for its management. Similarly, other ULBs generate 1916.5 MLD and Directorate
of Municipal Administration (DMA) is responsible for its management. The responsibility
of infrastructure development for STPs is taken up Karnataka State Government agencies
such as Karnataka Urban Water Supply & Drainage Board (KUWS&DB) and Karnataka
Urban Infrastructure Development and Finance Corporation (KUIDFC).

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169 STPs are established across the State, of which 36 are developed and operated by
BWSSB, 98, 33 and 2 STPs are, developed by KUWS&DB, KUIDFC and ULBs respectively
and operated by DMA. Of the total sewage generation (3356 MLD), total combined
treatment capacity of the STPs is 2788 MLD (83.1%). Of this installed capacity, only 70.26%
is being utilized to treat 1958.15 MLD of sewage, implying that the remaining 1398.44 MLD
sewage finds its way to rivers and lakes, untreated, resulting in severe environmental
deterioration. District-wise Sewage Management in Karnataka is as shown in
Appendix 7.5.

District-wise Gap in Sewage Treatment (MLDs)

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In Bengaluru, of the total quantity of sewage generated (1440 MLD), only 1213 MLD is
treated (84.23%). Out of this treated wastewater, about 800.8 MLD (66.02%) is used for
refilling tanks in Kolar & Chikkaballapura and for green belt development & gardening
in Bangalore International Airport, Golf Course, Lalbagh and Cubbon Park, etc, saving
precious fresh water. In other ULBs of Karnataka, the sewage generated is 1916.5 MLD.
The STPs have a total treatment capacity of 1259.96 MLD, but treat only about 745.87 MLD
of sewage.

Hence, there is overall gap of 41.64% in the utilization capacity of the total existing STPs in
the state. This gap could be filled by providing adequate Under Ground Drainage (UGD)
connections and Interception & Diversion (I&D) of the sewage to wet-wells and pumping
to the nearby STPs to maximize the utilization of installed capacity. Measures are taken
to implement several such I&D projects by BWSSB, KUWS&DB and KUIDFC across the
State.

District-wise STP capacity

utilization (MLD)

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Considering the projected growth of population, the existing STP capacity is not
sufficient and there is severe short fall. There is a need to increase the sewage
treatment capacity of the state in order to avoid adverse impact of discharges of
untreated sewage on health and environment. To cover the shortfall in treatment
of domestic sewage, 17 STPs of capacity 139 MLD by BWSSB, 63 STPs of
285.47 MLD capacity by KUWS&DB and one STP of 11.2 MLD capacity by ULB, respectively,
are under construction in the state. Details of Sewage Waste Management in
Karnataka is as shown in Figure 7.4.

Figure 7.4 Agency-wise SWM in Karnataka (in MLDs)

1800
1527.5
1440
1471

1600
Quantity of Sewage in MLD

1400
1213

1200
759.74

1000

800
483.72

476.87
445

600 285.47

246.07
262.5

400
139

200
16.5

11.2
6.5
0

0
0

0
0
0
Sewage Installed Operational Designed Proposed
Generation capacity (MLD) capacity (MLD) capacity (MLD) capacity (MLD)

BWSSB KUIDFC KUWS&DB ULB

Further, 83 STPs of 246.07 MLD capacity by KUWS&DB and 45 Faecal Sludge and Septage
Management (FSSM) systems have been proposed. FSSMs are low-cost and low-capacity
sewage management systems ideal for ULBs with less than 1 lakh population. Out of 45
approved FSTPs, 3 no. of FSTPs are under construction phase and the remaining proposed
projects are at various stages of implementation such as preparation and submissions
of Detailed Project Report (DPR) and tendering. Details of Agency-wise-STP status is as
shown in Figure 7.5.

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Figure 7.5 Agency-wise STP status

110
98
100
90 83
80
Number of STP's

70 63
60
50
40 36
33
30
20 17

10
2 0 1 0 0 0
0
Number of Existing STP Number of Under Number of Proposed STP
construction STP

BWSSB KUIDFC KUWS&DB ULB

Way Forward

In order to prevent further deterioration of water bodies, there is a need to increase the
capacity utilization of the existing STPs and expediting the construction of proposed
STPs with modern and feasible technologies. Recycling and reuse of treated water needs
be extensively promoted. In addition to installation of new STPs, operating efficiency of
existing STPs must be monitored and improved by adopting newer technologies and
complying with Standard Operating Procedure (SOP) set by Central Pollution Control
Board (CPCB) and KSPCB. A collective effort must be planned to minimize freshwater
usage and maximize sewage treatment and re-use/recycle of treated sewage.

There is a need to fix tariffs to charge users for treatment services. The effective use of
command-and-control instruments impose a legal limit on the amount of pollution
that is allowed. Economic mechanisms like (i) creating incentives for individuals and
companies to voluntarily assume the costs of controlling water pollution by adopting
efficient sewage treatment technology and (ii) having proper treated water reuse/recycle
policy to prevent the environmental damage could be effective.

In order to ensure sustenance of sewage treatment and recycling of treated water, it is

necessary to evolve policy for generating revenue through treated water recycling. As an
example, total sewage generation in BBMP area is 1440 MLD. If this sewage is treated
efficiently, it is estimated to generate 1153 MLD of usable water (for non-potable purpose).
At a cost of Rs.300.00 per 1000 L of water, treated waste water is expected to generate
revenue of Rs.346.00 crore per annum to BWSSB.

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Treated wastewater finds usage in the following sector.

oo Agriculture - Irrigation, Horticulture, crop irrigation, Commercial nurseries, Landscape

irrigation, Parks, avenue Plantation, School yards, Freeway medians, Golf courses.
Green belts, Residential Lawns.
oo Industries - Cooling water, Boiler feed, secondary Processes water, Heavy construction,
oo Community - Groundwater recharge &replenishment, Saltwater intrusion control,
Subsidence control, maintain water level at Lakes and ponds, Recreational /
environmental uses, Marsh enhancement, Stream-flow augmentation, Fisheries,
Snowmaking
oo Non-potable urban uses - Fire protection, Air conditioning, Toilet flushing, Blending
in water supply reservoirs.
7.6.3 Polluted River Stretches in Karnataka

Urbanization adversely affects physical, chemical, biological aspects and life support
system of river ecosystem beside landscape changes. Chemical and physical properties of
the urban rivers get altered due to municipal and industrial discharges. Direct dumping
of sewage and MSW into the river and addition of harmful chemicals from agricultural
runoff contributes to river pollution and eutrophication. Urban rivers are commonly
characterized by presence of organic pollutants, high Salinity, high Total Suspended Solid
(TSS), heavy Metals, Nitrate, acidification, and Eutrophication, high Biological Oxygen
Demand (BOD), Chemical Oxygen Demand (COD).

oo Current status of Polluted River Stretches in Karnataka

Based on the Biological Oxygen Demand (BOD) value at the water quality monitoring
locations along the river stretches, CPCB has identified 351 Polluted River Stretches (PRS)
throughout India wherein BOD exceeds 03 mg/L. 17 of them are in Karnataka under the
catchment of 42 ULB.

Among the 17 Polluted River Stretches (PRS) in Karnataka, 4 PRS, namely Lakshman
theertha, Arkavathi, Mala prabha and Tungabhadra are classified as priority III (BOD in the
range of 10 to 20 mg/L), 6 PRS, namely Cauvery, Kabini, Kali, Kagina, Krishna and Bhadra
are classified as priority-IV (BOD in the range of 6 to 10 mg/L) and the remaining 7 PRS
namely, Yagachi, Shimsha, Nethravathi, Kumardhara, Bhima and Tunga are priority-V
(BOD in the range of 3 to 6 mg/L).

A basic inventory to identify the pollution source reveals that the 42 ULBs cumulatively
generate 884.25 Million Litres per Day (MLD) of sewage. Available total sewage treatment
(STP) capacity in these ULBs is 822 MLD. Of the generated sewage, 536.00 MLD is treated
in the STPs, while 348.25 MLD sewage is untreated which eventually enters the rivers
making them highly polluted. These 42 ULBs cumulatively generate 1860.7 tons per day
of MSW. Of which, only 844.40 TPD is processed. 1016.30 TPD of MSW accumulates in
river catchments or gets dumped in landfill, threatening and damaging quality of river
water and underground water. Details of sewage and municipal solid in the 17 Polluted
River Stretches(PRS) ULBs of Karnataka is given in Appendix 7.6.

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Karnataka has taken special interest in rejuvenation of the 17 Polluted River Stretches
(PRS) and facilitating the preparation of River Rejuvenation Action Plans for individual
PRS along with complying timelines. The water quality is monitored on a regular basis
by analysing the parameters such as pH, dissolved oxygen (DO), BOD, faecal coliform
(FC) and total coliform (TC). Under the River Rejuvenation programme, 55 STPs with a
capacity of 133.05 MLD have been proposed and out of them 31 are under construction.
Furthermore, for cities with less than 10 lakh population, faecal sludge and septage
management (FSSM) facilities have been proposed in 05 ULBs.

Way Forward

It is high time that Sewage and Solid waste management issues become top priority
of ULBs act for continued relevance of the hymn we prayed over thousands of years.
The pollution load should not cross the carrying capacity of rivers. The river rejuvenation
programme of 17 polluted river stretches in Karnataka is aimed at improving river water
quality so that benefit of life support system of sacred rivers is continuously available for
future.

7.6.4 Industrial Effluent Management

The industrial activities are associated with increased levels of pollution. Increased level
of Environmental pollution reduces the quality of environmental attributes like air,
water, soil fertility etc and diminishes the carrying capacity of natural ecosystem. The
healthy ecosystem services are basic needs for a safe living on this earth. Increased level
of industrial activity causes increased level of pollution thereby making the people to
agitate against industrial ecosystem in their neighbourhood. Any amount of economic
benefit cannot compensate the threatened ecological comforts of the people.

oo Industrial Effluent Management in Karnataka

In Karnataka, there are 64,108 industries categorised as Green, Orange and Red category.
Out Of these, 3603 industries are water intensive industries thereby generating trade
effluent. From these industries total of 436.63 MLD of effluent is generated. Out of
effluent generating industries, 3424 industrial units have provided inhouse Effluent
Treatment Plants (ETP), with a combined capacity of 739.64 MLD. About 803 industries
who does not have in house ETPs, the trade effluent generated from these industries will
be disposed to 10 Common Effluent Treatment Plants (CETPs) that are spread out across
various districts of Karnataka by following the due procedure.

Way Forward

oo Industries shall not only ensure economic benefit but also ecological benefits to
maintain the sustainability for resource conservation and pollution control.
Strategy for Effective Trade Effluent Management

oo Establishing cluster wise industries like textile, electroplating, pharmaceutical, etc, in

a designated area with integrated waste management facilities.
oo Providing “Plug and Play System” for ensuring carrying of trade effluent from each
industry to the treatment plant.

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oo Encouraging establishment of cluster wise CETP at designated industrial area.

oo Creating sufficient buffer around industrial area and also around different categories
of industries.
oo Encouraging establishment of industries with circularity i.e. waste from one industry
can be used as resource/raw material in the other and adopting efficient treated
water recycling facility.
oo Encouraging the industries to adopt Rs.5.00 to conserve natural resource and to
reduce the pollution.
7.6.5 Electronic-Waste (E-Waste) Management

Electronic waste (e-waste) is generated when electronic and electrical equipment

(EEE) are unfit to use. Fast replacement of electronic and electrical goods due to rapid
technology advancements, increased production of newer products and compelling
marketing strategies of the brands result in shortening of the usable period of these
goods, resulting in the accumulation of e-waste. Computers, laptops, servers, mainframes,
monitors, compact discs, printers, scanners, copiers, calculators fax machines, battery
cells, cellular and mobile phones, transceivers televisions, radio, iPod, medical apparatus,
washing machines, refrigerators, air conditioners, speakers and home theatre system,
Xbox, PlayStation and other gaming equipment and solar panels, uninterrupted power
supplies (UPS) etc comprise common e-waste, beyond their usable life.

E-waste typically consists of metals, plastics, Cathode Ray Tubes (CRTs), printed circuit
boards, cables etc., containing significant quantities of precious and rare-earth metal
and metal alloys that are also toxic. The crude dismantling and processing of e-waste
poses an immense risk to the humans, animals and the environment, even in very
minute quantities. Global average recovery of these precious metals is only 10-15% due
to the non-availability of viable recovery technologies, resulting in huge loss of valuable
metals and environmental accumulation, causing pollution. India is the third largest
producers of e-waste after USA and China and generated 3.2 million tonnes of e-waste
in 2019. Further, e-waste generation is projected to reach 74 million tons globally and 11.5
million tonnes in India by 2028. The global e-waste management market size was valued
at 49.8 billion USD in 2020 and is projected to reach 144 billion by 2028.

oo E-waste Management in Karnataka

In Karnataka during the period of 2021-22, 1,11,589.92 Metric Tons (MT) of e-waste was
collected. As on date there are a total of 93 authorized e-waste managing facilities with
a capacity of 162724.4 MT. These e-waste managing facilities consist of (i) 30 dismantling
units are operational with a capacity of 27,426 MT; (ii) 23 recycler units with a capacity of
21330 MT capacity; (iii) 12 dismantling and recyclers units with a capacity of 16656 MT; (iv)
6 refurbisher units of capacity 3646 MT; (v) 3 dismantler, refurbisher & recyclers units with
a capacity of 5139.6 MT; (vi) 10 dismantlers and refurbisher units of capacity 14005 MT; and
(vii) 9 refurbisher and recycler units with a capacity of 74521.8 MT.

Way Forward

Computers, laptops and mobiles are estimated to have about 0.2 g, 0.1 g and 33 mg of gold
each, respectively. As on March 2021, India has registered an e-waste recycling capacity

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of 1.07 million tonnes per annum, With every million tonne of recycled e-waste yielding
roughly 14 Kg Palladium, 3 Kg Gold, 350 Kg Silver and 15875 Kg Copper, the opportunities
for revenue generation from e-waste metal recovery is immense.

Further, e-waste recycling industry is significantly generates employment opportunities

in the field of resource conservation. These sectors can also create job opportunities for
skilled, semi-skilled and unskilled work force creating buying capacity in the market.

In the recent past linear economy of “Take-Make-Consume-Dispose” is being replaced by

“Circular Economy (CE)” which has an approach towards management of e-waste. The
concept of circular economy will play an important role in resource recovery, reduction
in waste thereby generating lower level of pollution, longer product-life, recovery of
precious and rare materials, minimization of occupational and health hazards as well as
in giving an impetus to the evolution of recycling, reusing, recovering and replenishing
industry, thereby leading to formalization and job creation. Changes relating to design
(like Restricted Use of Hazardous Substance (RoHS), sustainable production of Electronic
and Electrical Equipment (EEE), development of innovative CE business models and
responsible consumption will also be taken up simultaneously.

7.6.6 Plastic Waste Management

The innovation of Plastic has reduced the environmental burden of resources of wood,
metal, etc but the waste plastic is creating health hazardous not only to human beings
but also to all the flora and fauna including aquatic animals. The plastic products have
become an integral part in our daily life and has become a basic need of economic activity
and are produced at a massive scale worldwide.

As per the 2019 report of Ministry of Housing and Urban Affairs, globally an average
production of plastic globally crosses 150 Million tonnes per annum. Approximately 9.4
million TPA of plastic waste is generated in the country, which amounts to 26,000 TPD.
The recycling rate in India is considerably higher than the global average of 20%, there is
still over 9,400 tonnes of plastic waste which is either landfilled or ends up in polluting
streams or groundwater resources.

The Government of Karnataka has issued plastic ban notification on 11-03-2016. The plastic
items such as plastic carry bags, plastic banners, plastic buntings, flex, plastic flags, plastic
plates, plastic cups, plastic spoons, cling films and plastic sheets for spreading on dining
table irrespective of thickness including the above items made of thermacol and plastic
which use plastic micro beeds are banned from usage.

Further, Plastic Waste Management (PWM) Rules, 2016, ban sachets using plastic
material used for storing, packing or selling gutka, tobacco and pan masala [Rule 4(f&i)]
PWM (Amended) Rules, 2021, the manufacture, import, stocking, distribution, sale and
use of carry bags made of virgin or recycled plastic. Additionally, the Notification of 12th
August 2021, prohibits manufacture, import, stocking, distribution, sale and use of the
single use plastic items, which have low utility and high littering potential. Recently
during 1st July, 2022, GoI has issued a notification banning Single Use Plastic i.e. Ear buds
with plastic sticks, plastic sticks for balloons, plastic flags, candy sticks, ice cream sticks,
polystyrene [thermocol] for decoration; ii. plates, cups, glasses, cutlery such as forks,
spoons, knives, straw, trays, wrapping or packing films around sweet boxes, invitation
cards, and cigarette packets, plastic or PVC banners. The PWM Rules 2021 is applicable

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to every waste generator, ULB/GP, manufacturer, producer/importer/brand owner and

plastic waste processor/ recycler.

During the year 2021-22, the total plastic waste generated in Karnataka was 368080
Tonnes. Till date there are 143 registered recycling units with authorized recycling capacity
of 210820.04Tonnes.

Since there is a huge informal market which is working in recycling of plastic and since the
informal sector does not care for environmental pollution control, there is need to bring in
informal sector to formal sector legalising the activity thereby enhancing the economic
status of the community. The long term Sustainable Plastic Waste Management can be
achieved by adoption of Circular Economy approaches which focus on resource recovery,
thereby reducing and offsetting the amount of plastic waste that ends up in landfills.

Huge quantities of plastics were seen dumped at the sites without recovering the plastic
for channelization to recyclers. Hence, compulsory segregation at all levels (specifically
at source) collecting and selling points needed using incentivizing and disincentivizing
policy options for example is collecting extra deposit and return that extra deposit when
plastic bottles are provided back by the shops (Deposit Refund Scheme).

Most of the plastic waste is recycled by the informal sector, waste-pickers, however, they
suffer from price volatility and lack of transparency in the supply chain. Hence initiatives
on institutionalizing and strengthening value chains required.

Restart the plastic recycling units by using the technology upgradation fund.

Way forward

There are large opportunities for manufacturing secondary products. Hence there is a
need to have proper policy for collection, segregation and distributions among different
recycling industries.

Large numbers of informal sectors are engaged in the resource recovery giving least
preference for pollution control. It is necessary to bring this informal sector into formal
sector by providing required infrastructure with pollution control measures and trained
personnel for effective management of plastic waste.

It is necessary to allocate land based on the processing capacity to establish plastic

recycling facility in each district based on the quantity of plastic waste generated.

7.6.7 The following are the important action points implemented by the Board

oo Board has launched online application for Green, Orange and Red categories of
Consents for Establishment, Consent for Operation, Consent for Expansion and HWM
authorization. The applications are processed through online mode and digitally
signed, e-out warded consents orders / authorization orders are issued through XGN-
Karnataka Software.
oo The Board has made mandatory provision for collection of consent fee by online mode
through XGN Karnataka (Payment Gateway (Debit card, Credit card, Net banking)).

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oo Board is issuing CFE with a validity of 5 years and CFO with a validity of 10 years, 5
years & 5 years for Green, Orange & Red categories industry/ organization respectively.
oo Board has published a well defined compliance inspection procedure, Check list on the
Board’s website. Designed and implemented a system for identifying establishments
that need to be inspected based on computerized risk assessment, mandated
online submission of inspection report within 48 hours to the Department, and also
provided the provision to view and download submitted inspection reports by the
organizations.
oo Facility has been provided for third parties to easily verify the approval certificates
(Consent order) in the public domain.
oo Board has exempted Green industries with a history of satisfactory compliance from
environmental compliance inspection.
oo Board has provided the facility for third party certifications instead of Departmental
inspections under environment/pollution laws for medium risk industries (Orange
category industries).
oo Board has implemented Random inspection of highly polluting industries.
oo Introduced GPS tracking to monitor vehicles carrying industrial effluents to CETPs.
oo Introduced GPS tracking to monitor vehicles transporting hazardous waste to TSDF.
oo Introduced state of art Emergency Response Vehicles to patrol illegal discharges,
watch CETP/TSDF, handle emergency situation and address complainants.
oo The Command Control Centre enabled with GPS technology was established with
dedicated phone number for general public to lodge and track complaints on
violations against Air, Water, Noise and SWM.

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APPENDIX 7.1

District-wise Forest Cover along with Geographical Areas in Karnataka

(Area in sq.km)

Geo- Very Mod. Total % of

Sl. Open
District graphical Dense Dense Forest Geog. Change Scrub
No Forest
Area Forest Forest Area area

1 Bagalkote 6,552 18.99 238.24 257.23 3.93 4.26 393.02

2 Bengaluru 2,196 24.88 263.60 288.48 13.14 1.05 7.45
3 Bengaluru Rural 2,298 24.04 133.98 158.02 6.88 -4.73 27.00
4 Belgavi 13,433 35.99 736.99 392.68 1,165.66 8.68 24.06 671.67
5 Ballari 8,461 110.19 627.30 737.49 8.72 -1.73 485.08
6 Bidar 5,448 21.48 76.10 97.58 1.79 9.16 46.28
7 Vijayapura 10,498 27.12 27.12 0.26 2.07 8.71
8 Chamarajnagar 5,648 93.19 1,525.16 1,112.85 2,731.20 48.36 7.01 125.82
9 Chickkaballapura 4,244 19.73 255.59 275.32 6.49 5.62 184.37
10 Chikkamagaluru 7,202 901.63 2,584.95 478.92 3,965.50 55.06 13.72 77.10
11 Chitradurga 8,436 47.06 559.94 607.00 7.20 30.39 618.33
12 Dakshina 4,861 557.88 1,471.73 1,035.37 3,064.98 63.05 0.32 2.85
Kannada
13 Davanagere 5,924 11.00 167.02 535.56 713.58 12.05 4.01 323.80
14 Dharwad 4,260 223.71 151.20 374.91 8.80 0.49 3.52
15 Gadag 4,657 0.23 140.82 141.05 3.03 -0.57 117.63
16 Kalaburagi 10,954 91.93 102.96 194.89 1.78 -0.16 40.89
17 Hassan 6,814 147.67 771.51 565.63 1,484.81 21.79 6.37 73.39
18 Haveri 4,823 144.76 202.37 347.13 7.20 3.88 102.29
19 Kodagu 4,102 794.32 1,886.30 577.29 3,257.91 79.42 -5.47 2.16
20 Kolar 3,979 58.05 325.67 383.72 9.64 2.33 67.95
21 Koppal 5,570 35.96 35.96 0.65 2.64 168.95
22 Mandya 4,962 114.15 394.18 508.33 10.24 9.01 103.68
23 Mysuru 6,307 124.96 586.74 351.35 1,063.05 16.86 10.22 36.02
24 Raichur 8,442 0.94 43.29 44.23 0.52 184.91
25 Ramanagara 3,516 196.71 477.30 674.01 19.17 9.32 176.23
26 Shivamogga 8,478 481.99 2,827.90 963.39 4,273.18 50.40 2.40 22.33
27 Tumakuru 10,597 72.34 1,250.73 1,323.07 12.49 39.03 402.96
28 Udupi 3,582 216.53 1,383.74 656.46 2,256.73 63.00 -26.65
29 Uttara Kannada 10,277 1,167.88 5,856.60 1,106.46 8,130.94 79.12 7.19 3.49
30 Yadgir 5,270 17.02 129.89 146.91 2.79 -0.73 132.88
Grand Total 1,91,791 4,532.94 20,984.85 13,212.20 38,729.99 20.19 154.51 4,610.76

Source: India State of Forest Report(ISFR)- 2021

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APPENDIX 7.2

Allocation and Progress for the year 2022-23 as per Avalokana

(Rs. in crore)

Produ- Admin/ Produc- Admin/ Total Admin/

Allocation Produc-
Scheme Name ctive Salary Release tive Salary Expend- Salary
(BE+SE) tive Exp
Allocation Allocation Release Release iture Exp

Unspent SCSP- 0.31 0.31 0.00 0.28 0.28 0.00 0.30 0.30 0.00
TSP Amount as
per the SCSP-TSP
Act 2013

Forest 653.18 0.00 653.18 438.74 0.00 438.74 437.29 0.00 437.29
Department
Establishment
and
Administrative
Expenditure

Working Plan, 17.00 10.00 7.00 17.06 9.96 7.10 8.57 5.54 3.03
Research
and Training
Institutions

Research 2.00 2.00 0.00 1.15 1.15 0.00 0.49 0.49 0.00

Computerisation 2.58 1.85 0.73 1.65 0.93 0.73 0.96 0.42 0.54
of Forest
Department

Roads , Bridges 16.00 16.00 0.00 13.96 13.96 0.00 9.53 9.53 0.00
and Buildings
(Maintenance)

Forest Protection, 16.75 16.75 0.00 11.50 11.50 0.00 4.36 4.36 0.00
Regeneration
and Cultural
Operation

Afforestation in 16.00 16.00 0.00 17.77 17.77 0.00 14.29 14.29 0.00
Other Areas

Demarcation 30.00 30.00 0.00 30.01 30.01 0.00 19.03 19.03 0.00
and Protection of
Forests

Afforestation on 10.00 10.00 0.00 8.28 8.28 0.00 6.52 6.52 0.00
Forest and Non
Forest Areas

Eco Tourism 0.88 0.00 0.88 0.39 0.00 0.39 0.78 0.00 0.78

Timber and 95.80 95.00 0.80 75.74 75.05 0.69 69.47 68.81 0.66
Other Forest
Produce
Removed by
Government
Agency

Special 0.50 0.50 0.00 0.51 0.51 0.00 0.48 0.48 0.00
Component Plan
for Scheduled
Castes-Forest
Dept

Tribal Area Sub- 0.50 0.50 0.00 0.52 0.52 0.00 0.48 0.48 0.00
Plan - Forest
Department

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Produ- Admin/ Produc- Admin/ Total Admin/

Allocation Produc-
Scheme Name ctive Salary Release tive Salary Expend- Salary
(BE+SE) tive Exp
Allocation Allocation Release Release iture Exp

Payments under 0.50 0.00 0.50 0.00 0.00 0.00 0.00 0.00 0.00
the Karnataka
Guarantee of
Services Act

Nature 30.75 7.50 23.25 24.16 5.13 19.03 19.59 3.21 16.36
Conservation -
Wild Life

Development of 1.00 1.00 0.00 1.02 1.02 0.00 0.71 0.71 0.00
Protected Areas

Nature 124.56 92.00 32.56 99.89 67.47 32.42 63.89 42.17 21.72
Conservation,
Wildlife Habitat
Management
& Man-Animal
Conflict Measures

Rehabilitation 10.00 10.00 0.00 10.00 10.00 0.00 8.12 8.12 0.00
and Voluntary
Acquisition of
Land Program

Karnataka Zoo 10.00 10.00 0.00 7.50 7.50 0.00 7.50 7.50 0.00
Authority

Compensatory 22.67 22.67 0.00 12.52 12.52 0.00 9.47 9.47 0.00
Afforestation

Catchment Area 0.59 0.59 0.00 0.59 0.59 0.00 0.50 0.50 0.00
Treatment Plan

Net Present 229.72 229.72 0.00 201.05 201.05 0.00 152.48 152.48 0.00
Value of Forest
Land

Interest 11.00 9.95 1.04 10.24 9.23 1.01 4.50 3.74 0.76

Others 7.00 7.00 0.00 4.58 4.58 0.00 3.27 3.27 0.00

Infrastructure 10.00 10.00 0.00 8.63 8.63 0.00 5.61 5.61 0.00
Development

Railway Barricade 50.00 50.00 0.00 53.07 53.07 0.00 37.59 37.59 0.00
to Prevent Man-
animal Conflict

Flexi Fund 250.00 250.00 0.00 183.89 183.89 0.00 139.06 139.06 0.00

Afforestation on 162.00 162.00 0.00 132.99 132.99 0.00 87.52 87.52 0.00
Forest Areas

Distribution 87.00 87.00 0.00 72.30 72.30 0.00 56.59 56.59 0.00
of Saplings for
Afforestation of
Non-Forest Areas

Tree Park 23.00 23.00 0.00 17.25 17.25 0.00 7.31 7.31 0.00
Program

Social Forestry 120.89 28.45 92.44 96.22 15.39 80.83 100.43 14.50 85.94

Social Forestry 95.11 95.11 0.00 86.87 86.87 0.00 84.48 84.48 0.00

Infrastracture 13.99 13.99 0.00 11.54 11.54 0.00 6.20 6.20 0.00
Development

Environmement 0.05 0.05 0.00 0.04 0.04 0.00 0.04 0.04 0.00
Research
Education &
Innovative
Projects

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Produ- Admin/ Produc- Admin/ Total Admin/

Allocation Produc-
Scheme Name ctive Salary Release tive Salary Expend- Salary
(BE+SE) tive Exp
Allocation Allocation Release Release iture Exp

Environment 4.86 2.40 2.46 3.66 1.20 2.46 3.60 1.20 2.40
Management &
Policy Research
Institute

Grant-in- 0.52 0.20 0.32 0.52 0.20 0.32 0.52 0.20 0.32
Aid to State
Environment
Impact
Assessment
Authority(SEIAA)

Green-Expo 2.00 0.00 2.00 0.00 0.00 0.00 0.00 0.00 0.00
Program

Protection of Bio- 3.24 1.60 1.64 2.04 0.80 1.24 1.78 0.80 0.98
diversity in the
State

Grant-in-aid 0.45 0.35 0.10 0.45 0.35 0.10 0.46 0.36 0.10
to Karnataka
State Appellate
Authority

Coastal 1.65 0.00 1.65 1.63 0.00 1.63 1.13 0.00 1.13
Management

CSS - Sub- 14.00 14.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Mission on
Agroforestry
(SMAF)

CSS - Project 8.00 8.00 0.00 1.71 1.71 0.00 1.27 1.27 0.00
Elephant

CSS - 1.15 1.15 0.00 0.62 0.62 0.00 0.00 0.00 0.00
Implementation
& Management
Action Plan for
Mangroves

CSS - Forest fire 3.30 3.30 0.00 0.70 0.70 0.00 0.00 0.00 0.00
prevention &
Management
schemes

CSS - National 20.00 20.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bamboo Mission

CSS - Integrated 28.00 28.00 0.00 4.86 4.86 0.00 4.11 4.11 0.00
Development of
Wild Life Habitats

CSS - Green India 23.00 23.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Mission

CSS - Project 50.00 50.00 0.00 20.99 20.99 0.00 15.99 15.99 0.00
Tiger

Total 2281.50 1460.94 820.55 1689.09 1102.41 586.69 1396.27 824.25 572.01

Source: Avalokana, PMI Division, Planning Department, Upto January 20th 2023.

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APPENDIX 7.3

Details of Irrigation Potential Created Cumulative Area

(lakh hectares)

Major and Medium Minor Irrigation

Project end/Year Total
Irrigation (Surface)

VII Plan (1985-1990)

1985-86 12.27 8.59 20.86

1986-87 12.75 8.65 21.40

1987-88 12.87 8.71 21.58

1988-89 12.97 8.82 21.79

1989-90 13.09 8.92 22.01

Annual Plan

1990-91 13.36 8.95 22.31

1991-92 13.80 9.00 22.80

VIII Plan

1992-93 14.25 9.06 23.31

1993-94 14.94 9.13 24.07

1994-95 15.28 9.18 24.46

1995-96 15.77 9.25 25.02

1996-97 16.13 9.30 25.43

IX Plan

1997-98 16.58 9.35 25.93

1998-99 16.93 9.38 26.31

1999-00 17.41 9.43 26.84

2000-01 18.12 9.51 27.63

2001-02 19.05 9.58 28.63

X Plan

2002-03 19.70 9.65 29.35

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Major and Medium Minor Irrigation

Project end/Year Total
Irrigation (Surface)

2003-04 20.38 9.71 30.09

2004-05 21.17 9.75 30.92

2005-06 21.97 9.82 31.79

2006-07 23.21 9.61 32.82

XI Plan

2007-08 23.64 9.69 33.33

2008-09 24.28 9.81 34.09

2009-10 24.56 9.87 34.43

2010-11 25.06 10.06 35.12

2011-12 25.56 10.28 35.84

XII Plan

2012-13 26.03 10.51 36.54

2013-14 26.97 10.89 37.86

2014-15 27.85 10.97 38.82

2015-16 28.68 11.31 39.99

2016-17 28.86 11.56 40.42

2017-18 28.97 11.81 40.78

2018-19 29.19 11.98 41.17

2019-20 29.34 12.11 41.45

2020-21 29.81 12.20 42.01

2021-22 30.15 12.30 42.45

2022-23* 30.82 12.35 43.17

*(Anticipated)

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APPENDIX 7.4

District-wise SWM in Karnataka

Waste Generation Waste processed

Qty of
Sl City legacy
District Wet Dry C&D Total Wet
No Compost Dry Waste waste
Waste waste waste MSW waste
generated (TPD) (Tonnes)
(TPD) (TPD) (TPD) (TPD) (TPD)
(TPD)

1 Bagalkote 110.90 87.80 18.50 231.00 87.7 11.4 79.5 57,520

2 Ballari 264.15 153.84 20.42 495.39 58 2.6 24.12 3,25,970
3 Belagavi 228.00 137.10 25.08 536.30 329.9 30.38 57.86 3,73,965
4 Bengaluru (R) 60.39 44.00 6.37 120.92 54.5 4.93 33.45 50,600
5 Bengaluru (U) 2399 1166.73 1002.22 4593 1257 71.5 615.3 10,760,200
6 Bidar 107.00 44.50 9.00 183.00 50 18 43 12,000
7 Bijapura 100.20 91.00 9.20 216.50 60 12.6 45 1,58,100
8 Chamrajnagar 34.52 26.18 8.73 75.38 6.7 0.36 0 55,057
9 Chikkaballpur 80.60 22.70 5.30 121.00 72 5.67 2.01 68,789
10 Chikkamagaluru 63.40 38.69 7.00 114.20 63.4 10.2 9.95 23,500
11 Chithradurga 64.50 40.00 12.00 137.00 45 3 10 1,50,000
12 Dakshina 232.87 167.26 11.06 416.79 305 27.86 38.75 6,03,500
Kannada
13 Davanagere 120.00 72.00 16.00 208.00 53 8.4 15.3 3,31,000
14 Dharwad 256.54 162.51 17.88 438.78 166.25 21.16 1.38 5,16,438
15 Gadag 58.00 54.54 16.58 148.00 58 8.66 28 42,908
16 Hassan 73.50 50.95 14.75 149.50 32.3 10 2.4 1,48,200
17 Haveri 89.84 45.08 4.53 162.20 69.5 14.55 10.7 2,60,330
18 Kalaburgi 202.28 114.37 12.70 352.55 190.75 15.7 133.43 1,63,000
19 Kodagu 23.00 14.57 2.40 41.09 11 4.15 5.3 47,000
20 Kolar 141.77 51.11 8.01 228.67 51.5 11 27.08 4,927
21 Koppal 62.58 49.97 3.35 129.00 58.55 14 7.16 91,979
22 Mandya 54.85 50.71 5.36 117.18 29.7 1.55 1.28 81,207
23 Mysuru 281.00 154.00 59.00 553.00 296.8 37.4 88.81 3,14,380
24 Raichur 120.75 81.48 11.19 223.90 77.9 1.3 1.99 94,892
25 Ramanagara 68.78 38.15 5.34 129.60 26.5 5.5 15.6 69,000
26 Shivamogga 116.49 98.26 47.15 289.00 158.45 29.7 46.2 58,180
27 Tumakuru 134.82 61.48 6.85 252.24 156.3 16.7 24.62 2,34,000
28 Udupi 56.44 40.65 6.05 110.33 63.42 16 10.57 80,758
29 Uttar Kannada 87.90 50.75 3.25 152.00 106.6 8.4 57 50
30 Yadgir 49.66 27.40 6.60 94.80 16.05 2.1 12.05 21,760
TOTAL 5743.7 3237.77 1381.87 11044.3 4011.8 424.77 1447.81 1,51,99,210

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APPENDIX 7.5

District-wise Sewage Management in Karnataka

Under
Existing STPSs Construction Proposed STPs
STPs
Sewage
Sl. Gap
District generated
No Installed Operation in STP Gap in No. Capacity No. Capacity
(MLD) No. of
capacity Capacity capacity treatment of of STP of of STP
STP
(MLD) (MLD) utilization (MLD) STP (MLD) STP (MLD)
(MLD)

1 Bagalkote 76.64 9 61.66 22.7 38.96 53.94 1 11.2 2 8.82

2 Ballari 3 55 42 13 3 8.55 5 18.53

77.42 21.72
3 Vijayanagara 4 43.79 13.7 30.09 0 0 0 0

4 Belagavi 172.44 5 29.8 8.2 21.6 164.24 10 82.04 12 57.8

5 Bengaluru (R) 57.48 1 12 7 5 50.48 1 8.52 1 1.82

6 Bengaluru (U) 1440 38 1533.9 1215 318.9 225 17 139 0 0

7 Bidar 53.42 3 40.52 8.8 31.72 44.62 1 7 0 0

8 Bijapura 68.28 6 43.96 35.42 8.54 32.86 2 12.61 0 0

9 Chamrajnagar 32.01 4 22 11.8 10.2 20.21 0 0 0 0

10 Chikkaballpur 39.36 3 15.1 10.6 4.5 28.76 2 4.85 2 13

11 Chikkamagaluru 35.69 2 22.64 14.64 8 21.05 0 0 0 0

12 Chithradurga 52.04 1 20 18 2 34.04 1 3.3 0 0

Dakshina
13 65.53 7 97.75 42 55.75 23.53 1 0.01 4 6.06
Kannada

14 Davanagere 76.64 6 81.1 54.4 26.7 22.24 0 0 1 0

15 Dharwad 114.96 8 77.5 40.79 36.71 74.17 0 0 8 22.16

16 Gadag 33.39 3 23.56 10.08 13.48 23.31 0 0 1 3

17 Hassan 67.06 6 32.3 25.3 7 41.76 6 29.85 3 4.5

18 Haveri 50.1 4 24.71 11.5 13.21 38.6 0 0 0 0

19 Kalaburgi 93.88 5 93.35 66.1 27.25 27.78 2 14.83 3 13.73

20 Kodagu 17.39 0 0 0 0 17.39 2 11 0 0

21 kolar 76.64 8 23.85 12.17 11.68 64.47 2 13 1 1

22 Koppal 43.59 1 14 12.6 1.4 30.99 0 0 1 4.51

23 Mandya 67.06 8 39.27 28.72 10.55 38.34 5 5.65 7 7.55

24 Mysuru 134.12 11 189.8 141.24 48.56 -7.12 10 16.93 0 0

25 Raichur 70.89 4 45.5 21.2 24.3 49.69 0 0 3 21.82

26 Ramanagara 38.32 3 17.55 11.32 6.23 27 0 0 5 6.86

27 Shivamogga 76.64 6 59.74 31.37 28.37 45.27 1 9 4 0.62

28 Tumakur 95.8 4 43.55 28.75 14.8 67.05 4 29.68 6 12.22

29 Udupi 47.9 2 15.5 6 9.5 41.9 0 0 4 3.31

30 Uttar Kannada 45.07 3 5.75 5.75 0 39.32 10 28.68 4 12

31 Yadgir 36.83 1 3 1 2 35.83 0 0 6 26.77

TOTAL 3356.59 169 2788.15 1958.15 830 1398.44 81 435.7 83 246.08

*MLD stands for Million Litres per Day

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APPENDIX 7.6
Details of sewage and municipal solid in the 17 Polluted River Stretches(PRS) ULBs of Karnataka

River Name/
Sewage STP Capacity Gap in MSW MSW MSW
Sl. Prio- Length of
District ULBs generation capacity utilization treatment generated Processed Gap
No rity the polluted
(MLD) (MLD) (MLD) (MLD) (TPD) (TPD) (TPD)
Stretch (Km)

Arkavathi
1 PIII Ramanagara Ramanagara 10.27 7.56 6.24 4.03 40 10 30
(55 Km)

Kanakpura 6.4 6.29 3.3 3.1 24 4 20

Bengaluru 576 576 385 191 909 525.2 383.8

Lakshman
2 PIII teertha Mysuru Hunsuru 6.05 3.9 3.9 2.15 23 18 5
(10 Km)

Malaprabha
3 PIII Belagavi Ramdurga 4.99 3.3 0 4.99 15 4 11
(80 Km)

Khanapura 2.32 0 0 2.32 6 0.5 5.5

Savadatti 4.94 0 0 4.94 15 4 11

MK Hubli 1.61 0 0 1.61 3 0 3

Munnawali 2.78 0 0 2.78 10 2 8

Tunga
4 PIII bhadra Davangere Harihara 10.5 18 4 6.5 35 5 30
(60 Km)

Davanagere 54.87 59.8 49.5 5.37 169 40 129

Ranibennur 13.42 15 10 3.42 60 12 48

Honnali 2.37 3.3 0.9 1.47 7 0.3 6.7

Huvina-hadgali 3.8 4.27 3.5 0.3 14.5 2 12.5

Bhadra
5 PIV Shivamogga Bhadravathi 16.74 14.03 6.85 9.89 50 20 30
(10 Km)

Cauvery Chamraja
6 PIV Kollegala 7.21 9 6 1.21 21 1 20
(50 Km) nagara

Mandya Srirangapatna 3.8 3.6 3.02 0.78 11 2 9

Mysuru bannuru 2.76 2.25 1 1.76 9 1 8

T-Narsipura 3.91 5.5 3.67 0.24 10 0 10

7 PIV Kabini (9 Km) Mysuru Nanjanagudu 5 7 3.3 1.7 26 12 14

Kagina
8 PIV Kalburgi Shahbad 6.11 0 0 6.11 20.04 12.59 7.45
(10 Km)

9 PIV Kali (10 Km) UK - Dandeli Karwar 9.74 1.5 1.5 8.24 27 19.11 7.89

Dandeli 8.5 0 0 8.5 18 12 6

Krishna
10 PIV Chikkodi Ugarakhurdha 2.85 0 0 2.85 12 0 12
(189.57 Km)

Vijayapura Kudachi 2.78 0 0 2.78 6.5 1.5 5

Raichur Examba 1.97 0 0 1.97 4.5 0 4.5

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River Name/
Sewage STP Capacity Gap in MSW MSW MSW
Sl. Prio- Length of
District ULBs generation capacity utilization treatment generated Processed Gap
No rity the polluted
(MLD) (MLD) (MLD) (MLD) (TPD) (TPD) (TPD)
Stretch (Km)

Chinchilli 2.64 0 2.64 4.75 0 4.75

Chikkodi 4.83 5.8 2.7 2.13 14.5 2.5 12

Ainapura 2.27 0 0 2.27 5 0.8 4.2

Sadalaga 3 3.72 0 3 8.43 2.5 5.93

Asangi -
Rabbakavi-
11 PV Krishna (33 Bagalkote 9.71 9.2 2 7.71 27 13.6 13.4
Bannahatti
Km)

Teradal 3.3 0 0 3.3 10 1.5 8.5

Shimsha
12 PV Mandya Maddur 4.51 3.5 2.4 2.11 13 3 10
(80 Km)

Bhima
13 PV Kalburgi Jewargi 3.25 3.25 0 3.25 10 4.08 5.92
(160 Km)

14 PV DK Uppinangdi 2 0 0 2 1.5 0.9 0.6

Panja&Kadaba 2 0 0 2 3 1 2
Netravathi &
Kumaradhara Bantwala 5 0 0 5 14 8 6
(55 Km)
Beltangdi 1 0 0 1 3 0 3

15 PV DK Subramanya 1.5 2.6 1 0.5 1.1 0.66 0.44

Tunga
16 PV Shivamogga Shivamogga 52 40.71 24.52 27.48 169 161 8
(10 Km)

Yagachi
17 PV Hassan Hassan 12.17 10 9.3 2.87 63 28 35
(60 Km)

Belur 3.38 2.7 2.4 0.98 3 0 3

884.25 821.78 536.00 348.25 1895.82 935.74 960.08

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 8
CHA PT E R

INDUSTRY

8.1 INTRODUCTION

Karnataka has been spearheading the growth of Indian industry, particularly in terms
of high-technology industries in the areas of electrical and electronics, information &
communication technology (ICT), biotechnology and, more recently, nanotechnology.
The industrial structure of Karnataka presents a blend of modern high-tech capital
goods and knowledge intensive industries on the one hand and traditional consumer
goods industries on the other.

As per the 7th Economic Census (Provisional) there are about 40,39,305 number
of establishments by nature of economic activity (excluding Government/PSU
establishments), of which Service Sector has 18,33,860 has the highest followed by
Trading (7,45,565), Manufacturing Sector( 5,03,901), Construction (76,243) and Electricity
(48,831).

Bengaluru Urban district has 78,24,646 number of establishment units, which is

the highest followed by Belagavi (2,99,997), Tumakuru (2,28,542), Dakshina Kannada
(2,08,969) and Hassan (2,07,483). Yadgiri is the most backward district with only 40,162
establishments. There are about 9,57,817 rural employed workers and 22,50,583 of
employed workers in the urban areas, totaling to 32,08,400.

The contribution of the Industry Sector to the state GDP is 20% (Manufacturing Sector:
13%, Gas, Electricity and water supply and other utility services: 7%). The average domestic
product of the industrial sector for the year 2019-20 is Rs. 10,47,666 lakhs. It is to note that
only 6 districts namely Bengaluru urban, Belagavi, Dakshina Kannada, Ballari, Tumakuru
and Udupi districts have a GDP higher than the state average and the remaining districts
are lower than the state average. The following measures can be taken to increase the
District Domestic Product of the districts which are having less than average state District
Domestic Product.

On an average there are 5029 industrial units per 1000 sq km geographical area of the
state. Other than Bengaluru urban, Bengaluru rural, Belagavi, Dharwad, Davanagere,
Dakshin Kannada, Mysuru and Kolar districts in other districts the proportion is less. In all
the 7 districts under Kalyan Karnataka this proportion is below state average. The average
domestic product of the service sector is 32,54,415 lakhs and only 4 out 30 districts viz.
Bengaluru urban, Belagavi, Dakshina Kannada and Mysuru have a GDP higher than the
state average. The remaining districts are having less than the state average domestic
product.

As per SDG India Index 2020 of NITI Aayog, Karnataka has ranked 6th among states with
respect to SDG 9 on Industry, Innovation, and Infrastructure with a score of 64 out of 100.
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Table 8.1: Performance of Karnataka vs India and performer States- Industry, Innovation and
Infrastructure (SDG 9)

Indicators / States Gujarat TN Punjab Karnataka India Target

Manufacturing 20.84 18.74 19.39 11.74 12.07 20

employment as a
Percentage of total
employment
Percentage of targeted 100 100 100 100 97.65 100
habitations connected by
all-weather roads under
Pradhan Mantri Gram
Sadak Yojana (PMGSY)
Percentage Share of GVA 36.74 20.58 13.78 15.88 16.1 25
in manufacturing to total
GVA (current prices)
Score as per Logistics Ease 3.62 3.4 3.46 3.37(40) 3.18 5
Across Different States
(LEADS) report
Innovation score as per 23.63 37.91 22.54 42.5 35.59 100
the India Innovation Index
Number of mobile 94.71 101.75 122.19 100.28 84.38 100
connections per 100
persons (mobile tele
density)
Number of internet 64.79 65.68 84.35 69.35 55.41 100
subscribers per 100
population
Score (Rank) 72(1) 71(2) 69(3) 64(6) 55 100

# Figures in the parenthesis indicate rank among States

Several initiatives have been taken by the State Government to improve the SDG indicators
which has boosted the industrial growth. Industrial sector GDP was Rs. 389915 Cr with
the growth rate of 24.4 in 2021-22 which has increased to Rs. 428721 Cr with a growth rate
of 10.8% in 2022-23. Performance of Karnataka vs India and performer States- Industry,
Innovation and Infrastructure (SDG 9) is given in Table 8.1.

8.2 ALL INDIA QUICK ESTIMATES OF INDEX OF INDUSTRIAL PRODUCTION

All-India Quick Estimates of Index of Industrial Production (IIP) with Base Year 2011-12
stands at 137.1 for the month of November 2022. The indices of Industrial Production
for the Mining, Manufacturing and Electricity sectors for the month of November 2022
stand at 122.7, 136.7 and 166.7 respectively. These Quick Estimates will undergo revision in
subsequent releases as per the revision policy of IIP. All India Quick Estimates of Index of
Industrial Production and Use-Based Index for the month of November 2022 with base
year 2011-12 are presented in Table 8.2 and 8.3.

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Table 8.2 : Index of Industrial Production – Sectoral (Base:2011-12=100)

Month Mining Manufacturing Electricity General

Weight (14.372472) (77.63321) (7.994318) (100)
Year 2021-22 2022-23 2021-22 2022-23 2021-22 2022-23 2021-22 2022-23
April 107.6 116.6 124.6 131.6 174.0 194.5 126.1 134.5
May 108.3 120.4 111.5 134.6 161.9 199.9 115.1 137.8
June 105.5 113.7 121.2 136.8 169.1 196.9 122.8 138.3
July 104.6 101.1 131.0 135.0 184.7 188.9 131.5 134.4
August 103.6 99.6 131.9 131.3 188.7 191.3 132.4 131.5
September 95.1 100.0 131.9 134.8 167.9 187.4 129.5 134.0
October 109.8 112.5 136.4 128.3 167.3 169.3 135.0 129.3
November* 111.8 122.7 128.9 136.7 147.9 166.7 128.0 137.1
Growth over the corresponding period of previous year#

November* 4.9 9.7 0.3 6.1 2.1 12.7 1.0 7.1

April - Nov 18.2 4.7 18.7 5.0 10.2 9.8 17.6 5.5

*Figures for November 2022 are Quick Estimates.

Note: Indices for the months of Aug 2022 and October 2022 incorporate updated production data.
#The growth rates over corresponding period of previous year are to be interpreted considering the
unusual circumstances on account of COVID 19 pandemic since March 2020.
Source: MOSPI, National Statistical Office, GoI, New Delhi.

As per Use-based classification, the indices stand at 132.5 for Primary Goods, 99.1 for
Capital Goods, 145.6 for Intermediate Goods and 159.6 for Infrastructure/Construction
Goods for the month of November 2022. Further, the indices for Consumer durables and
Consumer non-durables stands at 112.0 and 161.1 respectively for the month of November
2022.

Table 8.3: Index of Industrial ProductionUse-based Classification (Base:2011-12=100)

Infra-structure/
Capital Inter- Consumer Consumer
Month Primary goods Construc-
goods mediate goods durables non-durables
tion goods

Weight (34.048612) (8.223043) (17.221487) (12.338363) (12.839296) (15.329199)

2021- 2022- 2021- 2022- 2021- 2022- 2021- 2022- 2021- 2022- 2021- 2022-
Year
22 23 22 23 22 23 22 23 22 23 22 23

April 126.5 139.5 79.0 88.5 139.6 149.5 144.0 149.7 103.3 110.7 140.0 138.9

May 122.8 144.7 61.9 94.9 129.1 151.7 129.5 153.3 71.6 113.9 135.6 137.5

June 122.4 139.3 81.2 104.4 132.7 146.6 137.9 150.8 100.1 125.3 141.8 145.9

July 128.5 131.7 92.4 97.1 143.7 149.0 144.4 151.3 118.7 121.4 145.9 141.7

August 127.2 129.4 91.1 95.0 144.7 146.6 148.3 152.8 121.6 116.2 148.3 134.9

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Infra-structure/
Capital Inter- Consumer Consumer
Month Primary goods Construc-
goods mediate goods durables non-durables
tion goods

Weight (34.048612) (8.223043) (17.221487) (12.338363) (12.839296) (15.329199)

2021- 2022- 2021- 2022- 2021- 2022- 2021- 2022- 2021- 2022- 2021- 2022-
Year
22 23 22 23 22 23 22 23 22 23 22 23

September 117.3 128.4 93.3 103.9 142.9 145.4 145.0 156.2 131.0 126.8 147.3 138.0

October 128.5 131.1 89.8 88.3 147.2 143.3 153.6 155.3 129.5 106.5 149.7 129.7

November* 126.5 132.5 82.1 99.1 141.3 145.6 141.5 159.6 106.6 112.0 147.9 161.1

Growth over the corresponding period of previous year#

November* 3.5 4.7 -2.6 20.7 2.1 3.0 3.1 12.8 -5.7 5.1 -0.8 8.9

April - Nov 13.2 7.7 29.3 14.9 24.1 5.0 27.6 7.4 24.6 5.7 6.1 -2.5

*Figures for November 2022 are Quick Estimates.

Note: Indices for the months of Aug 2022 and October 2022 incorporate updated production data.
#The growth rates over corresponding period of previous year are to be interpreted considering the
unusual circumstances on account of COVID 19 pandemic since March 2020.
Source: MOSPI, National Statistical Office, GoI, New Delhi.

8.3 ORGANIZED MANUFACTURING SECTOR

The Annual Survey of Industries (ASI) presents detailed statistics on the manufacturing
sector of the organized industrial sector. Table 8.4 presents ASI statistics for registered
factories for 2018-19 and 2019-20 for Karnataka and All-India. Karnataka accounted for
5.75% of the total registered factories in 2019-20 in the country. The contribution of
registered factories of Karnataka stood at 6.18% of total fixed capital, 6.20% of total output
and 7.16% of Gross Value Added in 2019-20. The total registered factories in Karnataka
has marginally increased in 2019-20 as compared to 2018-19. However, the relative
contribution of Karnataka’s registered factories to the national industrial performance in
terms of total input and output has marginally decreased, working capital, fixed capital,
gross and net value added and profits has been increased during the same period.

Table 8.4: Selected Key indicators of Registered Factories: Karnataka& All-India

(Rs. crore)

2018-19 2019-20
Particulars
Karnataka India % Share Karnataka India % Share
Industries (No.) 13,789 2,42,395 5.69 14,169 2,46,504 5.75
Fixed Capital 2,07,122 34,66,070 5.98 2,24,928 36,41,352 6.18
Working 61,442 8,08,665 7.60 74,200 8,83,301 8.40
Capital
Total Output 5,79,082 92,81,799 6.24 5,56,877 8,98,330 6.20
Total Input 4,73,321 77,43,780 6.11 4,50,468 74,97,556 6.01

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2018-19 2019-20
Particulars
Karnataka India % Share Karnataka India % Share
Gross value 1,05,761 15,38,019 6.88 1,06,409 14,85,745 7.16
added
Net value 88,475 12,76,466 6.93 87,926 1,21,248 7.25
added
Profit 37,144 5,56,523 6.67 33,303 4,69,473 7.09

Source: Central Statistics Office (CSO), GoI

According to ASI2019-20 with NIC-2008, the major industrial groups in the registered
factory sector of Karnataka in terms of value of output are:

(i) Manufacture of Food Products – 15.92%

(ii) Manufacture of Basic Metals – 14.04%
(iii) Manufacture of Coke and refined petroleum products – 12.44%
(iv) Manufacture of Motor vehicle, trailers &semi-trailers – 6.74%
(v) Manufacture of Machinery and equipment – 5.78%
(vi) Manufacture of Chemical and Chemical products – 5.53%
(vii) Manufacture of Electrical equipment – 4.70% and
(viii) Manufacture of Wearing Apparels – 4.40%.
These eight industry groups together accounted for more than 72% of the total value
of output of registered factories of Karnataka in 2019-20. Details are presented in
Appendix 8.1.

The important indicators as per registered factory based on ASI results for 2018-19 and
2019-20 are presented in Table 8.5. Karnataka compares favorably with all-India in terms
of all the indicators – per factory employment, output and gross value added. Though
registered factories of Karnataka, on an average are more capital intensive than that of
all-India, they are also more employment-intensive and generated more value added as
well as output.

Table 8.5: Important Indicators per Factory

2018-19 2019-20
Indicator Unit
Karnataka India Karnataka India
Investment in fixed capital Rs.Lakh 1502.08 1429.93 1587.47 1477.20
Employment No. 78.04 67.16 76.30 67.44
Value of output Rs. Lakh 4199.59 3829.20 3930.25 3644.28
Gross Value Added Rs. Lakh 766.99 634.51 751.00 602.73

Source: Central Statistics Office (CSO), GoI

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The selected economic indicators per worker for Karnataka and All-India are given in
Table 8.6. Aannual wages per worker reveal that Karnataka was better-off than the all-
India, while the State lagged in total output and input per worker and Net value added
with all India in 2019-20.

Table 8.6: Selected Economic Indicators of Industries (2015-16 to 2019-20)

Labour
Annual
productivity Total input Total output per
wages
(Net value added per worker worker
per worker
Year per rupee in (Rs. Lakh) (Rs. Lakh)
(Rs.)
wages)

Karnataka India Karnataka India Karnataka India Karnataka India

2015-16 5.27 6.87 46.70 50.19 56.94 61.62 1,58,744 1,40,086
2016-17 5.66 6.60 48.85 50.57 60.61 62.30 1,76,598 1,48,794
2017-18 5.54 6.38 51.50 54.03 63.83 66.03 1,89,875 1,57,718
2018-19 5.22 5.92 50.66 51.61 68.74 72.52 2,01,374 1,68,581
2019-20 4.94 5.30 53.64 57.42 66.32 68.79 2,11,961 1,75,297

Source: Central Statistics Office (CSO), GoI

8.4 MICRO, SMALL & MEDIUM ENTERPRISES

oo Invest Karnataka 2022 held on 2nd, 3rd and 4th of November 2022 at Bengaluru has
been very successful in attracting huge investment. About 20,000 delegates have
participated in this 3-day convention including delegations from Japan, Germany,
France, Australia, South Korea and Netherlands. A total investment of Rs. 9,81,784
crore has flowed into the state from the Invest Karnataka Event. Out of this, 608
projects with a capital investment of Rs. 2,83,415 crore have already been approved
in the State Level Clearance Committee meetings. MoU signed for 57 projects worth
of Rs. 5,41,369 crore. In addition, Adani Group and Jindal Group have announced a
total capital investment of Rs. 1,57,000 crore in the state. More than 90 percent of the
contracted projects are implemented outside Bengaluru in Tire -2 cities.
oo The state of Karnataka has emerged as an attractive Investment Hub as a result of
effective steps taken along with the Industrial Policy 2020-25 initiated. In the ranking
list of “Ease of Doing Business” – SBRAP 2020 conducted by DPIIT, the state has
topped in the national level overcoming from it’s 17th position held earlier. Karnataka
Udyog Mitra that works under Directorate of Industries and Commerce has also
achieved as the leading investment promotion agency in the national level.
oo A total of 7.38 lakh micro, small and medium industries are registered in the state
on the Government of India’s Udyam web portal. Out of these there are 7,08,929
micro industries, 27,355 small industries and 2,426 medium industries. About 68.72
lakh people are employed in MSME sector. About 695 large and mega industries
are working with Rs. 2.36 lakh crore capital investment and providing employment
opportunities to 4.95 lakh people.

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oo During the year 2022-23 under Central sponsored schemes – under Prime Minister’s
Employment Generation Programme (PMEGP) a subsidy of Rs. 102.92 crores is spent
for 3607 beneficiaries with bank loan assistance. Under the Cluster Development
Programme (MSE-CDP) 10 clusters have been assisted with Rs. 3.97 crore grants.
oo During the year 2022-23 for MSMEs sector, a total of Rs. 474.27 crores budget have
been provided out of which Rs. 262.67 crores spent till date. Among this a subsidy of
Rs. 95.90 crore for 562 MSME industrial units and Rs. 43.80 crores for 17128 artisans of
Khadi, Coir and Handicrafts sectors are given.
oo Under SCP Rs. 96.29 crores for 376 beneficiaries and under TSP programmes Rs. 12.31
crores for 173 beneficiaries have been spent for providing subsidized industrial sites,
soft seed subsidies etc.
oo During the year 2022-23 for Large and Medium sector, a total of Rs. 1165.14 crore
budget have been provided out of which Rs.396.89 crore spent till date. Among
this Rs. 266.35 crores of VAT loan for 14 large industrial units and Rs. 25.00 crores of
subsidies for 14 units have been spent.
oo During the year 2022-23 SLSWCC has approved 291 projects with capital investment
of Rs. 13597.08 crores and expected employment opportunity for 47,248, SHLCC, has
approved 38 projects with capital investment of Rs. 2,20,309.30 crore and expected
employment opportunity for 1,37,282.
oo Under the new schemes for the year 2022-23, “Central Institute of Petrochemicals
Engineering and Technology (CIPET) center will be started at Bidar at a cost of
Rs. 90 crore in collaboration with the Central Government”.
oo “FMCG Cluster: Hubli-Dharwad is economically much anticipated twin city. In order
to establish FMCG cluster in the presence of Hon’ble Chief Minister 16 important
FMCG agreements have been made with industrialists for capital investment of
Rs. 1,275 crore on 28.10.2022. Under FMCG cluster programme special subsidies and
incentives are given to industries investing in the cluster. With the start of this cluster,
more employment opportunity will be created for youths of Kittur Karnataka and
Kalyan Karnataka regions.
Table 8.7: Number of registered Micro, Small and Medium units and employment for the year
2021-22 and upto 30 November 2022 as per Udyam registration

Micro Small Medium Total

Sl. Total
District Employ- Employ- Employ- Employ-
No. Units Units Units Units
ment ment ment ment

1 Bagalkote 13588 138686 239 3076 14 603 13841 142365

2 Ballari 15736 146926 636 11159 44 2425 16416 160510

3 Belagavi 40865 274922 770 17155 37 2805 41672 294882
4 Bengaluru 30335 327466 698 24233 42 2392 31075 354091
(Rural)
5 Bengaluru 150401 1113274 6084 223534 510 84730 156995 1421538
(Urban)
6 Bidar 10328 96334 222 2911 14 485 10564 99730
7 Chamarajnagar 5117 28809 120 2032 1 9 5238 30850

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Micro Small Medium Total

Sl. Total
District Employ- Employ- Employ- Employ-
No. Units Units Units Units
ment ment ment ment

8 Chikballapur 8595 69790 202 2580 6 252 8803 72622

9 Chikkamagaluru 8552 68532 261 4005 9 100 8822 72637
10 Chitradurga 8933 104747 266 2972 14 629 9213 108348
11 Dakshin Kannad 25420 165839 727 20977 41 3553 26188 190369
12 Davangere 12512 72870 373 5800 14 344 12899 79014
13 Dharwad 24315 130229 677 12915 47 3101 25039 146245
14 Gadag 7215 36719 201 1829 3 117 7419 38665
15 Hassan 14476 161132 441 7333 11 366 14928 168831
16 Haveri 10217 93967 289 3720 13 402 10519 98089
17 Kalaburagi 11737 103169 441 6087 15 314 12193 109570
18 Kodagu 5136 33253 144 1482 6 465 5286 35200
19 Kolar 9052 170878 325 5865 17 1413 9394 178156
20 Koppal 7188 92068 343 4922 12 627 7543 97617
21 Mandya 11689 84613 272 3647 3 32 11964 88292
22 Mysuru 29565 245479 826 27207 42 5105 30433 277791
23 Raichur 10530 132931 554 5932 32 664 11116 139527
24 Ramanagara 7899 47757 183 4073 5 274 8087 52104
25 Shivamogga 16658 101935 466 9370 17 652 17141 111957
26 Tumakuru 19100 171964 556 10844 32 2526 19688 185334
27 Udupi 14741 61334 414 10927 14 1856 15169 74117
28 Uttar Kannad 13038 56762 232 3677 6 286 13276 60725
29 Vijayanagar 1940 9609 66 814 - - 2006 10423
30 Vijayapura 14846 109372 393 10010 21 1207 15260 120589
31 Yadgir 7135 58783 175 1867 7 209 7317 60859
Total 566859 4510149 17596 452955 1049 117943 585504 5081047
Source :Udyam Registration Portal,GoI

The number of registered Micro, Small and Medium units and employment for the year
2021-22 and this year upto 30 November 2022 as per Udyam registration are given in
Table 8.7.

Ever since Udyogadhar web portal run by Govt. of India has been transformed into Udyam
registration web portal from the year 2020, a total of 7.38 lakhs micro, small and medium
industries are registered in the state. In the year 2021-22 upto the month of November 2022,
a total of 5.85 lakhs units are registered. Out of these there are 5,66,859 micro industries,
17,596 small industries and 1,049 medium industries registered. This has resulted into
larger number of employability in the state. About 50.81 lakh people are employed in
MSME sector alone. Apart from this there is also a good number of employments created
in Large and Mega industries sector. There are about 695 large and mega industries with
total capital investment of Rs. 2.36 lakh crore providing employment opportunities to
4.95 lakh people.

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Prime Minister’s Employment Generation Programme (PMEGP)

Under this scheme, the loan up to Rs. 50.00 lakh for manufacturing sector and upto
Rs. 20 lakh for Service Sector is extended through various banks. Progress made under
PM Self Employment Schemes till November 2022 Target is Rs. 15124.00 lakhs, 5215
projects and 41720 employment and 3489 projects, 27912 employment generated, 5086
persons trainedand Rs. 9980.26 lakhs spent.

Micro, Small enterprises – Cluster Development Programme (MSE-CDP)

11 Clusters implemented are located in Dharwad, Gulbarga, Vijaypur, Bidar, Belagavi,

Bengaluru, Ramanagar, Uttara Kannada and Chitradurga. Cluster Development
Programmes of GoI undertaken in the state upto November 2022 Rs. 9810.93 lakhs
worth 11 projects have been implemented and Rs.14980.00 lakhs have been approved.

Incentives and concessions to MSME units

During the year 2022-23 in the MSMEs sector, a total of Rs. 474.27 crores of allotment in
the budget have been provided out of which Rs. 262.67 crores are spent till the month of
November 2022. Among this, Rs. 187.81 Crores have been allotted to sanction investment
promotion subsidy and other incentives, Rs. 95.36 Crores spent so far. Rs. 43.80 crores
utilized for wage incentives, MDA etc. benefiting 17128 artisans of Khadi, Coir and
Handicrafts sectors till 30th November 2022.

Under SCP programmes, Rs. 96.29 crores for 376 beneficiaries and under TSP programmes
Rs. 12.31 crores for 173 beneficiaries have been spent for providing subsidised industrial
sites, soft seed subsidies etc. Financial Assistance provided to Micro, Small & Medium
Industries till November 2022 Rs. 9535.99 lakhs have been provided.

Private Industrial Parks

Government proposes to encourage establishment of industrial areas and estates in the

State either by private investors or through PPP model. Knowledge Based Industries
/ Flatted Factories, Logistics, Multi / Sector Specific Industrial Parks and Integrated
Industrial Parksare encouraged. These would be approved by SHLCC / SLSWCC.

8.5 SELECTED INDUSTRIAL SECTORS

Status of Implementation of Food parks:

Food Karnataka Ltd., has been nominated as the nodal agency and responsible for the
implementation of the following Food Parks in the State.

oo M/s. Innova Agri Bio Tech Park Limited, Malur: This Food Park has been developed
in an area of 87 acres of land in KIADB Industrial Area Malur, Kolar District. To
compliment the activities in addition to the food processing, a gamma irradiation
facility has been installed and accredited from USFDA. 50.48 acres in the park has
been allotted to 22 food processing units. An amount of Rs. 400 lakhs each (Total Rs.
800 Lakhs) has been released by the State and Central Governments. Totally 14 food
processing units are currently functioning in the park. Mangoes are being exported
to USA and Australia by utilizing the Gamma Irradiation facility. Other Common

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Facilities include Cold Storage, Pack house, Dry Warehouse, Sorting & Grading Lines,
Ripening Chambers, Hot Water Treatment Facility & Food Testing Laboratory.
oo M/s. Green Food Park Limited, Bagalkote: This Food Park is being developed in an
area of 100 acres of land at Navnagar KIADB Industrial Area, Bagalkote. 52.5 acres
of land allotted for 18 food processing units/ companies. An amount of Rs. 700 lakhs
(State: Rs. 400 lakhs and Central: Rs. 300 lakhs) has been released. Totally 06 food
processing units are currently functioning in the park. Common Facilities like Cold
Storage , Dry Warehouse, Washing & Grading Machines & Weighbridge are available
in the Food Park.
oo M/s. Akshaya Food Park Limited, Hiriyur: The Food Park has been developed in an area
of 106 acres and 37 guntas of land at Huchavanahally village, HiriyurTaluk, Chitradurga
District. An amount of Rs. 400 lakhs un secured loan has been disbursed by State
and Central Government. Totally 08 food processing units are currently functioning
in the park. Facilities like Cold Storage , Dry Warehouse, Grading & Packing Lines,
Pomegranate Processing unit, Patchouli Oil Extraction Unit, Weighbridge ,Business
Incubation Centre, Quality Assurance & Product Development lab are available in the
Food Park.
oo M/s. JewargiAgro Food Park Limited, Jewargi: This Food Park is being developed
in an area of 105 acres of land. An amount of Rs. 796 lakhs (State: Rs. 400 lakhs and
Central: Rs. 396 lakhs) has been released. Totally 07 food processing units are currently
functioning in the park. Common Facilities like Cold Storage, Dry Warehouse, Washing
& Grading Machines, Testing Laboratory & Weighbridge are available in the Food
Park.
oo Food Parks under the State Scheme, Vijayapura : As per 2021-22 Budget
announcement, it is proposed to Set up of a new food Park under AtmaNirbhar Bharat
in Vijayapura district. In this regard a grant of Rs. 4.21 crore has already been released
and the land development and compound wall construction work is in progress.
At present steps are being taken to start industrial layout development work. In the
75 acre area of the proposed food park, common in frastructure facilities such as
primary processing facility, cold storage unit, Weigh Bridge, warehouse etc. will be
provided for the benefit of the farmers and entrepreneurs of this region. It is proposed
to allocate plots on Lease cum Sale basis for setting up units for food processing
entrepreneurs after providing basic infrastructure like road, water, electricity etc.
TEXTILES INDUSTRIES

Budget allotment for the year 2022-23 is Rs. 34183.47 lakhs, an amount of Rs. 19469.38
lakhs has been released and expenditure of Rs. 15641.40 lakhs upto November 2022 for
implementation of various schemes.

The State’s production and imports of silk yarn till August 2022 is 7,759 MT and import
is 762 MT. Financial assistance provided to the Sericulturists is Rs. 6786.719 lakhs and
for reelers Rs. 517.491 lakhs. During 2021-22 mulberry silk production in Karnataka was
11191.139 MTs.

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Karnataka Information Technology and Biotechnology Services

The Information Technology Revolution in Karnatakahas began initially in Bengaluru.

Achievements in IT & BT sector from 2019-20 to 2022-23 (Upto November 2022) are
presented in Table 8.8.

Table 8.8: Achievements in IT & BT Sector for the year 2019-20 to 2022-23
(up to November 2022)

2022-23
Particulars Units 2019-20 2020-21 2021-22 (up to
Nov22)
Software Exports Rs.in 1994473.00 214315.00 266263.00 203745.00
crore
No STP Units Approved Number 159 129 169 123
Investment from STP Rs.in 1168.27 1804.97 569.35 313.5
Units Approved crore
Nos. of Foreign Equity Number 101 84 109 92
Companies
Investment from Foreign Rs.in 733.27 1751.65 511.68 202.51
Equity crore

Hardware Exports Number 4752.00 5213.00 5921.00 3140.00

Investment from Rs.in 721.81 0 0 0.97
Hardware Units crore
No of SME’s Companies Number 58 45 59 30
Investment from SME’s Rs.in 435 53.32 56.67 34.57
Companies crore

BPO Exports Rs.in 2636.88 4053.54 6110.78 N/A

crore

Source: Software Technology Parks of India, Bengaluru

Note: 1) The Software Export details provided from FY 2016-17 onwards includes the details of STP units
and Unit registered for Softex Certification.
2) BPO Export from FY 2019-20 onwards includes only BPO and Call center services.
3) BPO export for FY 2022-23 will be provided after submission of APR.

MINING AND MINERAL INDUSTRIES

The annual target of revenue collection for the Department of Mines and Geology for the
year 2022-23 is Rs. 6500.00 crores. The revenue target till November-2022 is Rs. 4160.00
crores and have achieved revenue collection of Rs. 3559.33 crores.

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8.6 STATUS OF PUBLIC ENTERPRISES IN KARNATAKA

Karnataka State Small Industries Development Corporation (KSSIDC)

The amount of Royalty collected is Rs. 0.1914 crores till November 2022. Raw Materials
worth Rs. 6.29 crore sold, 6,565 number of sheds and 10,650 industrial plots are established
till November 2022.

As per the emphasis laid down by the Government for development of the MSME sector
the Corporation is pursuing its efforts for establishment of new Industrial Estates.

oo In this regard the Corporation as per the decision taken by the Board of Directors
of KSSIDC in there 368th Meeting held on 14.11.2022 wherein the Board has decided
to take allotment of 25 acres of land from Karnataka Industrial Areas Development
Board each at Badanaguppe of Chamarajanagara and Kanagala of Belagavi
district and has accordingly sent a proposal to KIADB for allotting the said lands for
establishment of Industrial Estates.
oo Further, the Corporation is also continuing its efforts for securing Government lands
through the concerned Deputy Commissioners of the Districts for allotting atleast
10 acres for this purpose all the taluks of the state. The Deputy Commissioners of
Tumkuru and Chikkaballapur Districts have been requested to allot suitable lands for
this purpose.
oo With regard to implementation of Para-154 of the Budget Speech of the Year
2020-21 of the Hon’ble Chief Minister Government of Karnataka regarding setting up
of a coconut based Industrial Park in Tiptur of Tumkuru District the alternate land of
10.12 acres is proposed by the Sericulture Department to the one earlier proposed, the
land has been jointly inspected by the Corporation and the Sericulture Department
officials and as the land is found feasible for establishment of a coconut based
Industrial Park a report is sent to the Government for allotment of the same.
oo The Corporation as stated above is making continuous efforts for getting suitable
Government lands and also lands from the Karnataka Industrial Areas Development
Board for establishment of new Industrial Estates. After receiving positive response
from the Government and KIADB in the matter of allotment of lands the Corporation
keeping in mind the demand and feasibility of establishment of Industrial Estate will
initiate necessary action.
oo K.S.S.I.D.C. has been continuing to serve the M.S.M.E. units in the State by procuring
and distributing various Industrial Raw materials required by them like Iron & Steel
etc., through its raw material depots.
Karnataka State Industrial Area Development Board (KIADB)

In order to facilitate land acquisition activities for industrial development, State has
introduced a land-sharing scheme. KIADB acquired lands, wherein about 10781 sq.ft. of
developed land will be provided to the landowner in lieu of land compensation fixed for
one acre of land acquired. About 3541 acres of land have been acquired throughout the
State under land sharing scheme.

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Karnataka State Electronics Development Corporation Limited (KEONICS)

Company has undertaken many projects of providing and programming of IT software

and e-governance projects to various Government Departments of Government of
Karnataka and other States. Company is also marketing computer hardware, software,
e-tendering services, various electronic and IT equipment’s, surveillance cameras,
manpower and other related services to various Government Departments / Organizations
of Government of Karnataka and other States.

Electronics City: Company has set up Electronics City on a sprawling 332 acres of land
on Hosur Road, Bengaluru. This Electronics City is today a major hub for Information
Technology activities.

IT Park, Hubballi : The Government of Karnataka has established IT Park in Hubballi

with state-of-the art infrastructure. IT Park with 2.70 lakh sq.ft. built up area in a
sprawling IT Complex at Hubballi with a total investment of Rs. 42.36 croresis established.
The Government has offered additional incentives including providing work space
at concessional lease rentals to 50 entrepreneurs, providing job to 1526 employees.
KEONICS has been entrusted with the responsibility of maintaining the IT Park Complex
at Hubballi.

IT-SEZ Shivamogga : The Company has established an IT SEZ at Nidige-Machenahalli,

Industrial Area, Shivamogga in an area of 25 acres. The Government of India has accorded
KEONICS, the status of Co- Developer for this SEZ project. Out of 25 acres of land 6 acres
has been allotted to SEZ entrepreneurs.

IT Park Shivamogga : The Company has established an IT Park at Nidige-Machenahalli,

Industrial Area, Shivamogga in an area of 5 acres at a cost of Rs. 16.76 crores. The IT Park,
Shivamogga consists of Ground + four floors with carpet and common area totaling to
71422.11 sq.ft. out of which 63783.61 sq.ft. has been allotted to 10 entrepreneurs, providing
job to 698 employees.

IT Park, Kalburgi : The Company has established an IT Park at Kalburgi in an area of 1.72
acres at a cost of Rs. 11.24 crores. The IT Park, Kalburgi consists of Ground + four floors
with carpet and common area totaling to 53000 sq.ft. out of which 33552.04 sq.ft. has
been allotted to 10 entrepreneurs, providing job to 200 employees.

IT Park (K-Wings) Complex at HSR layout, Bengaluru: Company has built 75,000 Sq.
ft. of IT Park (K-wings) complex at HSR layout, Bengaluru at a cost of Rs. 34 Crores.K-
wing branches NASSCOM 10,000 startup, COE-IOT, Karnataka Digital Economy Mission,
Semiconductor Fabless Accelerator LAB (SFAL), Reserve Bank Innovation Hub (RBIH),
Internet and Mobile Association of India are functioning at IT park.

New Initiatives:

oo It is proposed to establish IT park on PPP mode at 3.25 acre land in Mangalore. Proposed
built-up area is 3.43 lakh sq.ft. with a project cost of Rs. 90.29 Crores. Proposal has
been sent to Government for approval.
oo It is proposed to establish IT park Annex - Phase-II on PPP mode in the existing 2.5
acres of land adjacent to the IT Park at Machenahalli Industrial Area, Shivamogga.

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Proposed built-up area is 1.80 lakhs sq.ft. with a project cost of Rs. 27.14 Crores.
Proposal has been sent to Government for approval.
oo DPR & Feasibility report prepared on PPP model to set up Hardware / Software IT
Park in 12 Acres of land at High-tech Defence and Aerospace Park (IT sector), near
Kempegowda International Airport, Bengaluru.
oo Financial Performance till November 2022, total turn over Rs. 294.15 crore achieved.
Department of Factories, Boilers, Industrial Safety and Health

Department of Factories, Boilers, Industrial Safety Health responsiblefor ensuring

occupational safety, health and welfare of the of workers in the registered factories and
at construction activities of above 25 crores investment through effective enforcement.

The State of Karnataka is having 17,857 registered factories with 17,53,327 workers and
there are 6,085registered Boilers. Taking into consideration the volume of storage of
hazardous chemicals, there are 82 Major Accidents Hazardous Factories in 20 districts in
the state.

There are about 1540 factories having hazardous manufacturing process and effective
inspections are conducted to avoid possible accidents. Further the department is
providing all the possible and required assistance to the management to ensure in
providing occupational safety & health at work place. The details of the departmental
activities in brief are given in Table 8.9. Registered Factories by Industries in 2022-23 are
presented in Appendix 8.2.

Table 8.9 : The details of the departmental activities in 2022-23

Sl.No. Particulars 2022-23

1 Registered Factories 890
2. Total Registered Factories 17,857
3. Total Workers 17,53,327
4. Inspections of Factories 5401
5. Prosecution (court Cases) 263
6. No. of cases in which fines is imposed 163
7. Compliance reports received 3163
8. Registered Boilers 6085
9. Total Registered Boilers 143
10. Inspections of Boilers 4354

Source:Department of Factories, Boilers, Industrial Safety and Health

Karnataka State Financial Corporation (KSFC)

KSFC takes pride in being pioneer institution for providing financial assistance to the
MSMEs of industrial and service segments in the State for past the 63 years. For the
FY:2022-23 (April 2022 to November 2022) the Corporation has assisted 304 cases to an
extent of Rs. 307.27 crore, disbursed Rs. 256.75 crore and recovered Rs. 489.93 crore.

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Karnataka State Industrial Investment & Development Corporation (KSIIDC)

KSIIDC is the nodal agency of the State Government for the development of the industrial
invest and development in the State of Karnataka. KSIIDC has initiated activities for the
development of the following projects.

oo Expansion of the Bengaluru International Airport.

oo Development of Bengaluru Signature Business Park.
oo Development of Airports, Airstrips and Helipads & Water Aerodromes.
oo Comprehensive Integrated Infrastructure Development Project related to Fisheries,
Ecology & Tourism etc., at Tadadi.
In addition to the above activities in the infrastructure sector, the corporation is also
responsible for Settlement of remaining loan accounts under the proposed new OTS
policy and Sale of primary assets taken over under section 29 and recovery of advances
through legal recourse under SFC & other Acts. Department target & achievements are
given in Appendix 8.3.

Public Enterprises

The state has 120 PSUs, of which, top 10 profit-making top PSUs in Karnataka are given
in Table 8.10.

Table 8.10: Top 10 State-level Public Enterprises in Karnataka

Enterprise Status As on 31.03.2022 Enterprises Status as on 30.11.2022

Name of the
Enterprises Profit
Investment Employment Profit Investment Employment
(Rs. in
(Rs. In Lakh) (In Numbers) (Rs.In Lakh) (Rs. In Lakh) (In Numbers)
Lakh)
Karnataka 600.00 515 Profit 600.00 449 Profit
State Minerals 78732.97 80957.70
Corporation (Upto
Limited Sept.22)
Karnataka 476944.86 3965 (PBT) 485580.11 3852 (PBT)
Power 31699.59 37220.97
Corporation
Limited
Karnataka 3182.21 254 13820.02 3182.21 239 10266.17
soap and (Tentative)
detergent
Mysore Sales 2255.82 95 8786.45 2255.82 81 5545.46
International
Limited
Karnataka 1200.00 296 6292.48 1200.00 263 7233.78
State
Beverage
Corporation
Limited

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Enterprise Status As on 31.03.2022 Enterprises Status as on 30.11.2022

Name of the
Enterprises Profit
Investment Employment Profit Investment Employment
(Rs. in
(Rs. In Lakh) (In Numbers) (Rs.In Lakh) (Rs. In Lakh) (In Numbers)
Lakh)
Karnataka 69470.60 50 7001.41 69470.60 44 4028.80
State
Industrial and
Infrastructure
Development
Corporation
Limited

Karnataka 3167.20 47 PBT 3167.20 36 Profit before

State Rs.2505.84 tax Rs.1170
Electronic PAT Profit after
Development Rs.1793.96 tax Rs.856
Corporation
Limited

Karnataka 3600.47 Permanent 3164.49 3600.47 Permanent – 2311.57

Silk Industries – 301 270
Corporation Outsource - Outsource -
Limited 734 720
Total - 1035 Total - 990

Karnataka 12.00 308 980.05 12.00 301 956.00

State Police (Provisional)
Housing &
Infrastructure
Development
Corporation
Limited

Karnataka 931.40 1910 371.35 931.40 1874 1550.10

Forest (unaudited)
Development
Corporation
Limited

Source: Finance Department

8.7 INDUSTRIAL POLICY INITIATIVES AND INDUSTRIAL INVESTMENT

The Government of Karnataka has announced the New Industrial Policy 2020-25, on
13.08.2020. The focus of the New Industrial Policy 2020-25 is to build on the strengths
of Karnataka’s industry and to enable it to fulfill its role as the engine of growth and
to shoulder responsibility of adding more hi-tech value and employment. Industrial
investments proposed through filing of industrial entrepreneurs’ memorandum (IEM)
and issuing of industrial licenses (IL) are presented in Table 8.11. There is decrease in
the number of Industrial Entrepreneurs Memorandum filed and amount of proposed
investment up to October 2022 increased when compared to December period in 2021.

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Table 8.11: Details of Industrial Memorandum filed for Karnataka.

January - December
Particulars
2022
2020 2021
(up to Oct. 2022)

Industrial Entrepreneurs Memorandum 120 114 88

filed (Nos.)
Percentage to All India Total 8.37 7.66 8.94
Proposed investment (Rs.crores) 1,62,492 61,726 67,652
Percentage to All India Total 39.19 8.0 17.16

Source :Department for Promotion of Industry and Internal Trade, GoI

Foreign Direct Investment (FDI) and Investment

The total FDI inflows to the Karnataka State in the 2022-23 was 23% (39361 US Dollar in
Million) and stands second among 10 Indian States, in terms of quantum of FDI inflows.

610 Project proposals (592 new proposals + 18 proposals for additional Investment)
with an investment of Rs. 44973.39 crores were approved in the SHLCC/SLSWCC. These
projects are likely to generate employment to 133701 people. 393 Project proposals
(356 new proposals + 37 proposals for additional Investment) with an investment of
Rs. 237148.82 crores were approved in the SHLCC/SLSWCC.

Major Industrial Initiatives to drive the growth of Industry and Service Sectors

The major initiatives are Industrial Policy 2020-2025, Tourism Policy 2020-26, SEZ Act
2005. “Atithi”– Home Stay scheme, Eco-Tourism accommodation. SEZs-Under SEZ Act
2005 has granted formal approvals for 75 SEZs in the State. Karnataka has 36 operational
SEZ’s with an investment of Rs. 1,06,524 crores and generating employment for 400170
persons. There are 485 SEZ units working in these SEZ’s.

8.8 KARNATAKA TOURISM

Department of Tourism as ventured upon following activities in order to develop basic

Tourism Infrastructure to facilitate the tourist visiting the destination.

oo Last mile connectivity to tourist destinations.

oo Development of Yatrinivas and Dormitory.
oo Publicity material providing
oo Toilet facilities.
oo Measures for tourists’ safety.
oo Drinking water
oo Providing Signages and Hoardings.

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Karnataka Department of Tourism has taken up infrastructure development on top

priority and has taken several concrete steps to enhance facilities at tourist destinations.
As a result, tourist arrivals are provided in Table 8.12. The state stood at 3rd position in
attracting domestic tourist (15.78 Cr) in the country during 2022 (upto November).

Table 8.12: Tourist’s Arrival from 2017 to 2022

Domestic Tourist Foreign Tourist Total

Year
Number of Tourists in Crore

2017 18.00 0.05 18.05

2018 18.72 0.05 18.78
2019 22.79 0.06 22.85
2020 7.75 0.02 7.76
2021 8.13 0.01 8.14
2022 (As on November) 15.78 0.01 15.79
Total 91.18 0.20 91.37

Source: Department of Tourism

Tourism as an Economic Activity:

For integrated development of Tourism in the State Department of Tourism has

introduced new tourism policy “2020-26” (revised) (5 Years). Karnataka Tourism Vision
Group report envisaged that during the 2020-26 policy period Rs. 5000 Cr investments
will be made which will generate around 10 lakhs employment directly/indirectly. More
investment expected from the private sector or under PPP.

Tourism value chain provides employment for not only skilled man power but also for
unskilled man power. As per estimation, approximately 8 to 11 percent of the world
population gets direct or indirect livelihood through Tourism sector. Tourism attractions,
monuments etc fall in the rural area therefore it is a good opportunity for the rural people
to get employment. Karnataka is one of the India’s most promising tourism destinations.
Tourism Sector contributes one out of ten jobs in the state.

Income from Revenue Earnings

Tourism earns foreign exchange. The revenue generated by the Tourism is both by direct
and indirect. Tourism and its allied sectors of travel and hospitality have emerged as key
drivers of growth among the service sectors of India. As per WTTC’s Economic Impact
2018 – India report, travel and tourism contributes to 9.2% of India’s total GDP, positioning
the country as 3rd among 185 countries in terms of the sector’s overall contribution to
the economy. Budget allocation and Expenditure till November 2022 is Rs. 159.84 crore
and expenditure incurred is Rs. 101.58 crore.

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Promotion and Publicity

Karnataka Tourism has initiated a new theme “Script Your Adventure”. Karnataka is
primarily known for its heritage destinations and its wildlife/national Parks. Apart from
that, it is also famous for its magical hill stations, spectacular waterfalls, pilgrimage
centers and a 320km long coastline dotted with unspoilt beaches. In fact, Karnataka has
it all, except snow clad mountains, making it an ideal place for a traveler with diverse
interests.

Tourism Policy: Subsidy Incentives and Concessions

The sum of Rs. 40.00 crores has been released to hotel projects approved during the year
2009-14 and 2015-20 tourism policy.

oo Tourism Infrastructure
Under this scheme 955 various Infrastructure works sanctioned in the previous years
have been continued as ongoing works. The sum of Rs. 20.00 crores have been released
to the implementing Agencies for completion of ongoing works and to start new works.
These works are under various stages of implementation.

oo Karnataka Tourism Vision Group Recommendations

Under the recommendations of KTVG 97 works for infrastructure development in various
tourism destinations are continued and 282 new works are sanctioned for the current
year 2022-23. An amount of Rs. 11700.00 lakhs sanctioned and Rs. 2800.00 lakhs released.

oo Development of 20 Heritage Destinations

Orders have been issued for the overall development of 20 heritage destinations including
conservation and preservation of monuments.

Karnataka Darshana Scheme

An amount of Rs.6.00 Crore released for Karnataka Darshana Tour Programme for 8573
SCP,TSP and 8573 OBC 8th Standard Government High School, Murarji Desai and Christ
Residential high school children in 2022-23.

Development of Tourist infrastructure with the financial assistance of Ministry of

Tourism, Government of India

oo Under PRASAD scheme: A Concept Report is submitted to Ministry of Tourism for the
overall development of Chamundeshwari Temple at Mysore. The project is approved
for Rs. 47.47 Crore during the CSMC meeting on 1st September 2022. Awaiting issue
of sanction letter to processes with issue of works tender for the same.
oo Development of basic amenities under religious category in the Prasad Scheme.
▶▶ Sri Madhwa Vana, Kunjarugiri, Udupi District.
▶▶ Papnash Temple, Bidar District.
▶▶ Sri Renuka Yellamma Temple, Saudatti, Belagavi District.

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oo Three destinations were approved by Ministry of Tourism. Karnataka Tourism

Infrastructure Limited has been entrusted with preparation of concept plan for the
three destinations.
oo The CSMC approved the recommendation of the mission directorate for taking up
Hampi and Mysuru destination for the development under Swadesh Darshan Scheme
2.0. Awaiting issue of model RFD and empanelled list of project development and
management consultant (PDMC) from Ministry of Tourism.
Tourist Mitra Programme:

In order to provide safety and security tourists at tourist destinations 458 home guards
have been trained in the second batch including 75 women candidates & totally 500
deputed to important tourist destinations to assist tourists as ‘Tourist Mitra’s’. (Tourist
Police) (1st batch 42 + 2nd batch 458).

WAY FORWARD TO ACHIEVE $ 1 TRILLION GDP

oo 15,000 acres of available industrial land (across Vijayapura, Ballari, Dharwad,

Shivamogga, Hassan, Ramanagara, Tumakuru, Chikkaballapur districts) would be
optimally utilised besides private sub-sector specific ‘plug and play’ industrial clusters
pushing MSME growth Beyond Bengaluru and generating employment of 45-50
Lakhs.
oo Develop Industrial Corridors in Joint Venture (SPV viz. CBIC Tumakuru Industrial
Township Limited) with National Industrial Corridor Development Corporation
Limited, GoI at the following places.
oo In Tumakuru under Chennai Bengaluru Industrial Corridor scheme about 8484 acres
is being developed in 3 Phases with an estimated investment of about Rs. 10,000
crores., wherein, it is expected to attract investment of Rs. 50,000 crores, generating
employment 2.35 lakh Nos and contribution to the exchequer to the tune of Rs. 5600
crores.
oo In Dharwad under Bengaluru Mumbai Industrial Corridor scheme about 6000 acres
is being developed in 2 Phases with an estimated investment of about Rs. 7000
crores., wherein, it is expected to attract investment of Rs. 35,000 crores, generating
employment 1.81 lakh and contribution to the exchequer to the tune of Rs. 4,000
crores.
oo In Yadgir under Hyderabad Karnataka Industrial Corridor scheme about 3200 acres is
being developed in 2 Phases with an estimated investment of Rs. 3000 crores. wherein,
it is expected to attract investment of Rs. 18,700 crores, generating employment 0.97
lakhs Nos. and contribution to the exchequer to the tune of Rs. 2,100 crores.
oo The KSSIDC has established infrastructure committee for the establishment of
industrial parks at the various parts of the State, small industrial parks at Bidar- 9,
Kalburgi – 10, Yadgir-2, Raichur-4, Koppal -2 and Ballari -7.
oo There is need for further push in labour intensive industries through skilling/up
skilling/re skilling and providing incentives as well.

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oo New Education Policy will be leveraged to inculcate skilling from secondary education
onwards to produce industry demand ready workforce besides incentivizing R&D
incubation by setting up venture funds and NAIN (New Age Innovation Network)
centres to encourage students, research scholars and alumni to boost the GDP.
oo The vast tourism potential of Karnataka such as Coastal, Wildlife, Heritage, Adventure,
Medical / Wellness, Religious / Spiritual, Eco Tourism, Agri-Tourism and Rural Tourism
will be developed by providing relaxation to the ‘land use change policy’.
oo Operationalize container handling facility at Mangalore port to divert in bound and
out bound cargo from Chennai, Tuticorin and Kochi ports.
oo Newer ways to progress in governance and management of public systems through
PPPs and use of big data is critical at this juncture for free flow of information,
improved efficiency, faster delivery and building trust with citizens of the state.

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APPENDIX 8.1

Two Digit Level (NIC-2008) Industrial Composition based on ASI 2019-20

Value of
Sl.
Industrial Group (NIC-2008) Output Percentage
No.
(Rs. lakh)
1. Agriculture and related activities (01) 600235 1.08
2. Manufacture of Food Products (10) 8867810 15.92
3. Manufacture of Beverages (11) 844323 1.52
4. Manufacture of Tobacco Products (12) 639659 1.15
5. Manufacture of Textiles (13) 365467 0.66
6. Manufacture of Wearing Apparels (14) 2451420 4.40
7. Manufacture of Leather and Related Products (15) 346038 0.62

8. Manufacture of Wood & Wood Products (16) 140183 0.25

9. Manufacture of paper & Paper Products (17) 1034161 1.86

10. Manufacture of Printing &Reproduction of Recorded Media (18) 279220 0.50

11. Manufacture of Coke & Refined Petroleum Products (19) 6925670 12.44
12. Manufacture of Chemical & Chemical Products (20) 3079683 5.53
13. Manufacture of Pharmaceutical, medicinal chemical and Botanical 2097780 3.77
products (21)
14. Manufacture of Rubber products (22) 1631006 2.93
15. Manufacture of other non metallic mineral products (23) 1557198 2.80
16. Manufacture of basic metals (24) 7821004 14.04
17. Manufacture of Fabricated metal products (25) 1181225 2.12
18. Manufacture of Computer, electronic & optical products (26) 1637488 2.94
19. Manufacture of electrical equipment (27) 2615421 4.70
20. Manufacture of machinery & equipment (28) 3218548 5.78
21. Manufacture of motor vehicle, trailers &semi trailers (29) 3753376 6.74
22. Manufacture of other transport equipment (30) 2078340 3.73
23. Manufacture of furniture (31) 296630 0.53
24. Manufacture of other manufacturing materials (32) 508207 0.91
25. Manufacture of repair & installation of machinery (33) 45995 0.08
26. Manufacture of waste collection treatment of disposal 95562 0.17
activities (38)
27. Others 1576009 2.83
State Total 55687658 100.00

Source: Central Statistics Office (IS Wing), Kolkata

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APPENDIX 8.2

Registered Factories by Process

NIC Group
Description 2022-23
2008
10 Manufacture of Food products 2310
11 Manufacture of beverages 139
12 Manufacture of tobacco products 60
13 Manufacture of Textiles 341
14 Manufacture of wearing apparel: Dressing and dyeing of fur. 1135
15 Tanning and dressing of leather 115
16 Manufacturing of wood and wood products 347
17 Manufacturing of paper and paper products 363
18 Publishing, printing, reproduction of recorded media 460
19 Manufacturing of coke, refined petroleum products 134
20 Manufacturing of chemical and chemical products 785
Pharmaceuticals, medicinal, chemical & botanical products 268
22 Manufacturing of rubber and plastic products. 796
23 Manufacturing of other non-metallic mineral products. 898
24 Manufacturing of Basic metals. 582
25 Manufacturing of fabricated metal products except machinery 2476
and equipment.
28 Manufacturing of office accounting and computing 508
machinery, Manufacturing of radio, television and
communication equipment and apparatus
27 Manufacturing of electrical machinery and apparatus. 643
26 Manufacturing of machinery and equipment N.E.C. 730
29 Manufacturing of motor vehicles, trailers and semi trailers 217
30 Manufacturing of other transport equipments. 64
31 Manufacturing of furniture: Manufacturing N.E.C. * 170
35 Other manufacturing , Manufacturing of medical precision 95
and optical instruments, watches and clocks.
36 Electricity gas water supply 347
45 Repairs and maintenance of motor vehicles and motor cycles 1255
96 Other service activities 2619
Total 17,857

Source: Department of Factories, Boilers, Industrial Safety & Health

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APPENDIX 8.3

Target and Achievements of Karnataka State Industrial & Infrastructure

Development Corporation Limited

FY 2019-20 FY 2020-21 FY 2021-22

Particulars
TARGET ACHVMT TARGET ACHVMT TARGET ACHVMT

SOURCES:

Opening 31919.09 31919.09 42684.59 42849.26 46008.69 46008.69

Balance of
Cash/Bank

Structured 1000.00 1000.00 0.00 0.00 0.00 0.00

Obligation to
GOK (HUDCO)

Government 25.00 25.00 25.00 25.00 0.00 0.00

of Karnataka
/ BIAP Cell/
Equity Support

Projects/Others 8700.00 8648.94 75.00 13027.90 4800.00 43408.77

KITVEN Fund 0.00 18.82 0.00 0.00 0.00 177.29

Recovery from 18.00 19.26 19.50 19.53 19.40 22.47

Staff Advance

Recovery from 1743.67 1348.85 1600.00 1688.08 1600.00 948.08

Operations

Revenue 7456.95 7994.06 8909.25 7484.32 8836.73 10809.55

Receipts

Income tax 1456.25 1713.73 1499.94 1520.24 1644.94 1745.55

refund/ Lease
Rent Payable/
Others

Total 52318.96 52687.75 54813.28 66614.41 62909.76 103120.40

APPLICATIONS:

KITVEN Fund 450.00 357.94 350.00 97.73 458.78 0.00

Repayments to 0.00 0.00 0.00 0.00 0.00 0.00

HUDCO/CRPS
Redemption

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FY 2019-20 FY 2020-21 FY 2021-22

Particulars
TARGET ACHVMT TARGET ACHVMT TARGET ACHVMT

Staff Advances 65.00 14.26 36.00 13.29 60.00 17.10

Discharge of 1456.25 1621.07 1649.94 2942.16 1774.94 4009.74

other liabilities/
BIAL Lease
Rent

Capital 197.00 67.50 242.00 8.74 746.00 139.57

Expenditure

Project 7650.00 5347.30 20.21 14049.64 4968.00 35298.60

Expenditure/
Deployment

Current Assets 250.00 0.00 0.00 1261.04 800.00 11.55

Income Tax/ 2783.14 1080.01 801.97 1092.49 900.00 1507.22

Sales Tax/FBT/
Others

Revenue 1743.57 1515.08 1565.16 1240.63 1842.35 2217.93

Payments

Closing Balance 37724.00 42684.59 50148.00 46008.69 51359.69 59918.69

of Cash/Bank

Total 52318.96 52687.75 54813.28 66714.41 62909.76 103120.40

Source: Karnataka State Industrial & Infrastructure Development Corporation Limited

Karnataka Economic Survey 2022-23

 9
SKILL, ENTREPRENEURSHIP CHA PT E R

EMPLOYMENT AND LABOUR

WELFARE

9.1 INTRODUCTION

As per SDG India Index 2020 with respect to SDG8 on Decent Work and Economic
Growth, Karnataka ranked 6th among States with a score of 66 and the best performing
states neighbouring State is Telangana (73). Labour- Force Participation Rate (LFPR) (15-
59 years) is 56.6% and best performing State is AP with a score of 63.5%. Ratio of female to
male Labour Force Participation Rate (15-59 years) is 0.34 (score 28) and better performing
states are Gujarat (0.81) and AP (0.71). Unemployment rate (15-59 years) is 3.9%.

Efforts of the government schemes and policies has led to increase in Labour Force
Particiation Rate (LFPR) (age 15 & above) from 51.2% in 2018-19 to 56.9%.in 2020-21 and
decrease in unemployment rate from 3.9 % in 2018-19 to 2.7% in 2020-21. The Skill and Labour
Departments are instrumental in skill training for job seekers and resolving industrial
disputes arising between employers and employees through tripartite conciliation
mechanism, thereby fostering harmonious relationship between them and ensure
optimum productivity. For the benefit of unorganised sector which constitute around
83%, the State Government has framed Unorganized Workers Social Security (Karnataka)
Rules, 2009 and constituted the Karnataka State Unorganized Workers’ Social Security
Board. Skilling/upskilling efforts to unorganised work force will significantly contribute to
the vision of USD1 Trillion GDP by way of increasing employability and income prospect.

9.2 SKILL DEVELOPMENT, ENTREPRENEURSHIP AND LIVELIHOOD

Enhancing Skill Empowering Youth

The Government of Karnataka has set up the Department of Skill Development,

Entrepreneurship and Livelihood (SDEL) in 2016 to enable the state’s youth to acquire
necessary skills for decent employment, and to promote sustainable livelihood.
Simultaneously, industry’s need for skilled manpower will be satisfactorily met resulting
in enhanced productivity and growth in all the three sectors of economy. In accordance
with the National Skill Development Policy, the State Government has finalized a Skill
Development Policy with an objective of providing suitable skill training for job seekers
and to provide them placement. The demographic advantage provides a window of
opportunity for the next 25 years. It gives the State a developmental edge with a potential
to leverage as a global leader, provided this large youth population is channelized, skilled
and equipped adequately. During the year 2022-23 the expenditure (Rs. 1009.89 Cr) to
release (Rs. 1038.29 Cr) ratio is 97.26% upto January 2023.

Koushalya Mission Structure

Skill Development, Entrepreneurship and Livelihood activities through Mission Mode.

State Koushalya Mission chaired by honourable Chief Minister , District Koushalya Mission
chaired by Deputy Commissioner and Taluka Koushalya Mission chaired by Assistant
Commissioner

Registration of job seekers under kaushalkar.com

The candidates registered under www.kaushalkar.comfor various job roles of the sectors
having potential job opportunities will be imparted skill training as per their aspirations.
 Skill, Entrepreneurship Employment and Labour Welfare
330

The information of district and categorywise aspirants registered is given in the

Appendix 9.1.

Organizations coming under the department

The organisations undertaking Skill Development, Entrepreneurship and Livelihood

activities are brought under this department are given below.

1 Entrepreneurship Development and Incubation Centres

2 Industrial Training Institutes and Multi Skill Development Centres
3 Karnataka Skill Development Authority
4 Commissionerate of Industrial Training and Employment
5 Rural Development and Self Employment Training Institute
6 Centre for Entrepreneurship Development of Karnataka
7 Government Tool Room & Training Centre.
8 Karnataka German Multi Skill Development Corporation (KGTTI)
9 Bharat RatnaMokshagundamVisvesvaraya National Training Facility for skill for All
Society.
10 National Livelihood Mission(Rural and Urban)
11 Karnataka Skill Development Corporation

Chief Minister’s Kaushalya Karnataka Yojane

Market driven skilling, re-skilling and up-skilling of youth in the age group of 18-35
years, recognizing their prior learning and provide them higher skills and make them
capable of getting decent employment. Impart quality training by building capacity
of the training institutions and trainers and providing effective incentives. Providing
training by enforcing uniform curriculum, standards and certification etc., by aligning
with National Skill Qualification Framework and consolidating training programmes of
all the departments. To ensure every trainee has a gainful wage or self employment with
decent work. Out of an annual target of 36540,25757 youths are trained and 21541 are
employed under Chief Minister’s Kaushalya Karnataka Yojane-2022-23 up to November
2022.

“SANJEEVINI” – Karnataka State Rural Livelihood Promotion Society (KSRLPS)

The urban and rural livelihoods of Karnataka has been amalgamated as per the
pronouncement made in 2020 by the State Government. Till date Sanjeevini – KSRLPS has
covered all the 226 blocks in all the 31 districts in the state of Karnataka. The Hon’ble Chief
Minister of Karnataka has declared year 2022-23 budget speech as “Year of Livelihood”.
The details of Progress of Sanjeevini-KSRLPS against the action plan given in Table 9.1
(Upto November 2022)

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Table 9.1 : Details of Progress of Sanjeevini-KSRLPS during the year 2022-23 (Rs.in Crore)

Available % to % to
Component wise details Budget O.B Releases Expenditure
Fund Release Budget
National Rural Livelihood
814.68 164.39 108.66 281.47 226.36 208.32 27.78
Mission
National Rural Economic
Transformation Project 62.00 20.88 4.52 27.51 27.45 607.30 44.27
(NRETP)
Rural Self Employment
19.31 2.79 20.17 23.00 0.00 0 0
Training Institute (RSETI)
DeenDayal
Upadhyaya Grameena
173.14 69.15 1.61 71.73 10.35 642.86 5.98
KaushalyaYojane
(DDU-GKY)
Start-up Village
Entrepreneurship 59.70 3.16 0.00 3.20 2.70 0 4.52
Programme (SVEP)
Stree Samarth yojana 100.00 0.00 100.00 100.21 0.12 0.12 0.12

Lok Operating System (LokOS): Action Plan / Progress

LokOS has been developed to record and register details of neighbourhood groups, Area
Development Societies (ADS) and Community Development Societies (CDS) in rural
areas. It is being readied in the state in accordance with the National Rural Livelihood
Mission (NRLM). Profile entry will be practiced in Training server until December 2022
& from January 2023 entry will be done in Live server and is expected to complete the
Profile entry by March 2023

Social Development and Gender

To prevent domestic violence and child sexual abuse, 4.25 lakh self-help group members
have been trained. The State has created a special training manual on non-violence.
Further, awareness is being created on prevention of domestic violence against women
through rally, street drama, special Gram sabha meetings, rangoli competition, workshop
activities

At present, 16547 Gram Panchayath level Federation (GPLF )units are working at the
Gram Panchayath level and 1954 women have been trained in 4-wheeler driving and 814
women are working.

Common Work Shed

As announced by the Honorable Chief Minister of Karnataka in the Budget Speech,

common work sheds have been constructed under MGNREGA to facilitate the members
of Stree Shakthi Federations to undertake their activities. 750 work sheds will be
constructed additionally in the year 2022-23 with an estimated cost of Rs. 17.50 lakhsper
unit. So far, 49 works are completed and 268 works are under progress

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Financial Inclusion

Door-to-door banking services are being provided to meet the financial needs of self help
groups in rural areas through Business Correspondence (BC). One BCSakhi is working
per gram panchayat, during 2022-23, 3320 BC sakhisare active at gram panchayat level.

Financial assistance are provided under Pradhan Manthri Jeevan Jyothi Bima Yojane
(PMJJBY), to such families in case of health problems, unexpected accidents, unexpected
death etc. of family members of Self Help Group, So far, 16.2 lakhs (85%) members covered
and under Pradhan Manthri Suraksha Bima Yojane18.9 lakh (78%) SHG members and
families are registered.

Community Investment Fund (CIF)

Community Investment Fund (CIF) is provided as a resource in perpetuity to capitalize the

institutions of the poor. SHGs will prepare micro investment/micro credit plan to pursue
income generating activities by poorest of the poor women in the SHGs. Farm Livelihood
promotion is focused on developing the livelihood basket of rural poor consisting of
multiple livelihood sources, Diversifying livelihood portfolio of rural poor with minimum
2-3 farm livelihood activities from among the agriculture, horticulture, livestock, fishery
and NTFP.Details of Progress of Farm Livelihood is given in Table 9.2.

Table 9.2 : Progress of Farm Livelihood

Indicators Annual Targets Achievement %

No. of MahilaKisans covered under AEP
2,50,000 2,42,351 96.94
interventions
No. of MahilaKisan supported under livestock
1,50,000 1,35,650 90.43
interventions
No. of Krishi Sakhis (Agriculture CRP)
5962 5,261 88.24
positioned
No. of PashuSakhis (Livestock CRP) positioned 5962 5,154 86.45
No. of Organic Village Clusters (OVC)
30 30 100.00
established
No. of Local Group registered on PGS India
300 280 93.33
portal
No. of Integrated Farming Clusters (IFC)
14 14 100.00
developed in NRETP
Establishment of Agri Nutri Gardens (ANG) 6,02,162 6,04,961 100.46
Establishment of plant nurseries 425 468 110.12

oo Sanjeevini - KSRLPS is the agency implementing Pradhan Mantri Formalisation

of Micro food processing Enterprises (PMFME) scheme in Karnataka state. It aims
to enhance the competitiveness of existing individual micro-enterprises in the
unorganized segment of the food processing industry and promote formalization of
the sector. Seed Capital of Rs. 15.59 cr. was disbursed to 3921 SHG members.

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oo In the year 2022-23, 100 Van Dhan Vikas Kendra (VDVKCs) have been sanctioned from
Ministry of Tribal Affairs (MoTA) and TRIFED to Karnataka with a total budget of Rs.
15.00 crores. As advance payment Sanjeevini KSRLPS has received 50% of the funds
that is Rs. 7.5 crores and further transferred to districts.
oo Under Farm Livelihood, 2168 Krishi Sakis, 270 PashuSakis have been trained and 437
Krishi Udyog Sakis have been trained and deployed in the field to achieve the targets.
Non- Farm/ Enterprises Promotion

oo Sanjeevini KSRLPS has conducted a National SARAS Mela and 306 SHGs participated
from Karnataka and generated income of Rs. 3 crores.
oo In ChitrakalakalaParishath, trade fair 120 SHGs participated and have collected a
revenue of Rs. 35.00 lakhs.
oo Every month Taluka monthly markets have been conducted in all the taluks to
generate an income of Rs. 5.00 crores in the 1st and 2nd quarter and have benefitted
more than 3000 micro enterprise.
oo To promote online marketing of the products manufactured by the SHG members of
Sanjeevini – KSRLPS, MoU has been signed by Amazon, Flipkart, Meesho and Kulture
Street and 200 products have been onboarded and put up for online sales.
Stree Samarthya Yojana (SSY)

The Honourable Chief Minister of Karnataka has announced in his budget speech 2022-23
about Stree Samarthya Yojane, which will supports SHGs to produce standard products
by a financial assistance of Rs. 1.00 lakh to 50,000 Self Help Groups as Community
Investment Fund. So far, 53,102 SHGs have registered under SSY.

National Rural Economic Transformation Project (NRETP)

13 One-Stop facility (OSF) centres has been established in Gadag, Tumkur and Uttara
Kannada districts. The OSF will plan to support 2017 SHG entrepreneurs in the next three
years.

Start-up Village Entrepreneurship Project (SVEP)

Start-up Village Entrepreneurship Project (SVEP) aims to support rural poor come out
of poverty by helping them set up enterprises and provide support till the enterprise
stabilizes. The total project cost for implementation of project in a taluk for duration
of four years is Rs. 5.97 crore per block, supporting atleast 2400 enterprises owned and
managed by SHG women.

Rural Self Employment Training Institutes (RSETIs)

RSETI’s is the nodal agency for providing training to rural youths on self employment
on different trades. In Karnataka State, 33 RUDSETI / RSETIs have been established in 29
districts with well established infrastructure and human resource through which training
on 62 different trades are imparted to the selected candidates.

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DeenDayal Upadyaya Grameena Koushalya Yojane (DDU GKY):

DDUGKY a skill programme of MORD earlier known as Aajeevika Skills Yojane renamed
as a Deen Dayal Upadyaya Grameena Koushalya Yojane envisages providing jobs after
trained by training partners. State has developed action plan 54,000 Candidates training
in Skill Development, Entrepreneurship and Livelihood have been approved initially by
the Central Empowered Committee of MORD with an approved cost of Rs. 692.78 crores
including support cost for three years. The physical progress for this amount is given in
Table 9.3

Table 9.3 : Progress under DDUGKY approved by MoRD from 2019 to 2023

Trained and placed as on December 2022

PIAs Target Training Training Placement
Commenced completed Achieved
2019 to 2022 54,000 50,888 44,564 25,095

FY 2022-23 14000 1854 2380 544

Deendayal Anthyodaya Yojana - National Urban Livelihoods

Swarna Jayanthi Shahari Rozgar Yojana (SJSRY) This scheme is implemented with the
support of Central and State Government and the sharing pattern of 60:40 per cent.
The State Urban Livelihoods Mission is aimed to reduce poverty and vulnerability of the
urban poor households by enabling them to access gainful self-employment & skilled
wage employment opportunities.

As per the guidelines issued by Ministry of Housing and Urban Poverty Alleviation
GoI, DAY-NULM programme is being implemented in 277 cities in the state i.e 11 City
Corporations, 59 CMCs, 115 TMCs and 92 TPs.

The progress achieved under DAY-NULM upto November 2022 is given in Appendix 9.2

PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)

The PMSVA Nidhi scheme is implemented in all the Urban Local Bodies in this state of
Karnataka. Till the end of November 2022-23, out of 2,98,702 eligible applications, loan
has been sanctioned for 2,34,316 beneficiaries amountingRs.294.86 crores and Rs. 243.51
crores has been disbursed to 1,99,049 street vendors.

Centre for Entrepreneurship Development of Karnataka (CEDOK)

Entrepreneurship Awareness Camps/Programmes is to create awareness on

entrepreneurship among the students, SHG members, unemployed youths, women,
etc. The durations of Awareness Programmes are from one day to three days based on
the requirement. Entrepreneurship Development Programmes Main objectives of these
programmes are to create awareness on different self-employment schemes of various
departments and to prepare project plans and formulation.

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Government Tool Room and Training Centre (GTTC)

Government Tool Room and Training Centre (GTTC) Bangalore, was established in the
year 1972 with Danish assistance on a modest scale has today grown into major Tool
Room in the country. GTTC offers training programmes at various levels with a view to
address the ever growing requirement of qualitative technical manpower for diverse
manufacturing environments.

Establishment of Centres of Excellence

oo Centre of Excellence has been established in association with Siemens Industry

Software and Design Tech Systems Ltd., at Bengaluru, Mysuru, Dandeli and Kalaburgi
GTTC centres.
oo Centre of Excellence has been established in association with Dassault Systemes
at Humnabad, Lingasugur, Hospet and Yadgir GTTC centres located at Kalyana
Karnataka Region.
oo Centre of Excellence has been established in association with Parametric Technology
Corporation (PTC) at Belagavi, Hubballi, Mangalore, Shimoga, Hassan, Tumkur and
Harihar GTTC centres.
GTTC has 28 training centres across the state of Karnataka. This facilitates the candidates
(both urban and rural) to get the industrial skill training. GTTC is providing skill training
programmes to the youth with industry ready skills to cater the manpower requirements
of industries. GTTC trained candidates are well accepted by the industry.

Karnataka German Multi Skill Development Centre (KGMSDC)

KGMSDC has established Two Multi Skill Development Centres (MSDCS) in Bangalore
& Gulbarga of International Standards for training in Advanced Technology areas with
the Technical Collaboration of the German Technical Corporation (GIZ-IS), Germany.
The objective of these centres is to offer specialised skills training programme on par
with international standards and in alignment with the Industry requirement. MSDC
Bangalore and Gulbarga have already achieved 100% recovery ration in respect of
recurring expenses. For the first time in the country GoK with GoI assistance has
established Multi Skill Development Centres (MSDCS) at Bangalore and Gulbarga with
the Technical Collaboration with GIZ-InS, Germany, three more Multi Skill Development
Centres (MSDCs) has already been set up at Belagavi, Mangaluru and Hubballi and
training has commenced from February 2015.

Karnataka Skill Development Corporation (KSDC) Limited

On the recommendations of the National Skill Mission/ State Skill Mission in accordance
with the Skill Development Policy, According to Government Order the Skill Development,
Entrepreneurship and Livelihood Department was reconstituted. Accordingly, the
Institution was renamed as Karnataka Skill Development Corporation.

Chief Minister Kaushalya Karnataka Yojane (CMKKY)

Under the CMKKY Scheme, 112812 candidates have been trained free of cost in 125 different
job roles through more than 630 government and private institutions.

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Short Term Skill Training: Steps have been taken to train 7500 candidates in short-term
skill training. GTTC and KGTTI Institutes have been instructed to train 5000 candidates,
and the grant for it has been released.

Pradhan Mantri Kaushal Vikas Yojana: Under the PMKVY Scheme, 33956 candidates
have been trained free of cost in 63 Job roles across 234 Training Providers across the
state. This training has been provided by private training providers with 2020-21 seeing
9181 candidates and 2021-22 seeing 11408 candidates trained.

Recognition of Prior Learning (RPL): Under this program a target of certifying 6000
candidates was kept with 5572 candidates being trained, tested and certified thus far.

Training of Trainers: Under the SANKALP Scheme, 500 ITI / Diploma / Degree Instructors
are to be trained in English Communication and 21st Century Skills. 100 Trainers from
Vocational Training Institutes are to be trained in Advanced Skill Training Programs.

International Migration Centre - Karnataka (IMC-K)

Corporation has been identified as a Recruitment Agency and registered with the Ministry
of External Affairs, Government of India. Karnataka Skill Development Corporation
identifies candidates for suitable employment opportunities abroad and thus so far has
provided overseas employment opportunities to 513 candidates. Under the program,
IMCK provides Pre Departure Orientation Training (PDOT) to candidates and thus so far
has provided training to 576 candidates. This training includes awareness and information
about the host nation, legal and rules, grievance redressal mechanism and embassy
assistance.

Additionally, official documentation and certification from the Ministry of External Affairs
is also provided. Migrant Resource Centres and Migrant Information Centres have been
set up in 8 Districts and Pre Departure Orientation Training Centres to aid the candidates
are being planned. Karnataka Skill Development Corporation has signed an MoU with
the National Health Services (NHS), United Kingdom, to provide training in International
English Language Testing System (IELTS) for Nurses and 60 candidates are being trained
under this program. In the current year, the Corporation has captured the demand
for various sectors from potential employers from the Middle East. The recruitment
procedure is currently underway.

Skills and Job Fairs

Job fairs for professionals through skill training are organized on a large scale at the state
level and short job fairs are organized at the district level, about 2,17,602 candidates have
been employed by these fairs till 2022-23.

Apprenticeship Training

Nearly 145784 apprentices are being trained in 337 industries in the state under
Apprenticeship Act, 1961. The central government has amended the Education Act and
introduced industry-friendly regulations, increasing the manpower strength to over
40. Each enterprise is allowed to train 2.5% to 15% of the apprentices based on the total
number of employees by registering them at www.apprenticeship.gov.inportal.

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9.3 LABOUR WELFARE DEPARTMENT AND EMPLOYMENT

Labour Welfare Department for the benefit of unorganised sector which constitute around
83%, the State Government has framed Unorganized Workers Social Security (Karnataka)
Rules, 2009 and constituted the Karnataka State Unorganized Workers’ Social Security
Board. Skilling/upskilling efforts to unorganised work force will significantly contribute to
the vision of USD1 Trillion GDP by way of increasing employability and income prospect.

Organised and Unorganized Worker

Karnataka Labour Welfare Board constituted in 1969, in accordance with Karnataka Labour
Welfare Fund Act, 1965 & Rules 1963 to implement Various Welfare and Social Security
schemes for the Organized sector workers, working in registered factories, plantations,
motor transport establishments, shops & commercial establishments, employing more
than 50 workers

Ministry of labour and employment, National Data Base of Unorganised Worker is given
a target of 1,89,18,003 unorganised workers target for Karnataka to upload in e-SHRAM
portal and District wise details is given in Appendix 9.3.

The Union Government has identified 379 categories of unorganised workers, inclusive
of Building and Other Construction workers, Agriculture Laborers, Fishermen, Asha
Workers, Domestic Workers, Drivers, Tailors, Street Vendors and other categories of
unorganised workers not mentioned in the list can also register under “Other Category

The Karnataka State Unorganized Workers Social Security Board (KSUWSSB)

Registration of the Unorganised workers under E-shram Portal

The Central government has given a target of registration of 1.89 crore unorganized workers
for Karnataka State in the e-shram portal developed by it. So far About 7374012 workers
have been registered as on date 23.01.2023 under this portal across the Karnataka and
steps will be taken to reach the target by undertaking IEC activities to create awareness
among the beneficiaries. The major registration occupational sectors details are given in
Table 9.4.

Table 9.4 : Major Sectorwise registration under e-shram portal

Occupational Sector No. of Registrations

Agriculture 4016096
Construction 872563
Apparels 679644
Automobiles and Transportation 337751
Miscellaneous 316355
Domestic and household workers 193022

Source: GoI, e-shram portal.

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Skilling Guidance

KSUWSSB (RA-K) through its Migration Facilitation Architecture (MFA) continuously strives
to provide counselling and advice to the candidates on various skilling opportunities,
including those under the Chief Minister’s Kaushalya Karnataka Yojane (CMKKY), Pradhan
Mantri Kaushal Vikas Yojana (PMKVY), Deen Dayal Upadhaya Grameen Kaushalya Yojana
(DDU-GKY) so that candidates can be considered for overseas employment opportunities.

Aatmanirbhar Bharat Rojgar Yojana (ABRY)

ABRY was announced as a part of Aatmanirbhar Bharat 3.0 package to boost the
economy, increase the employment generation and to incentivize creation of new
employment along with social security benefits. This scheme being implemented
through the Employees Provident Fund Organization (EPFO), reduces the financial
burden of the employers of various sectors/industries and encourages them to hire
more workers. Under ABRY benefits are provided to every establishment registered with
EPFO and their new employees (earning wage less that Rs. 15,000/- per month). If this
scheme is extended to Unorganized sector workers providing occupation based micro
loan facility, domestic industries/domestic production will increase and as a result, triple
the unorganised sector share to GDP.

Bridging the digital divide and strengthening non-digital infrastructure: Unorganised

workers only 4.4% rural and 42% urban households have access to the internet which is
further skewed due to gender and regional disparity. In this digitally unequal landscape,
the hope for an organic digital uptake of e-SHRAM seems a distant dream. However, the
use of existing non-digital welfare infra structure boards, PDS, MGNREGA, ICDS etc.

Initiatives of labour department

The labour department includes Employees State Insurance Scheme and Factories,
Boilers, Industrial Safety and Health. The labour department has prepared labour codes
on the occupational Safety, Health and Working condition code 2020 section 133 and 135
(Karnataka) Draft Rules-2021 and published on 4-4-2022 as per central Act no 37 of 2020
section 133 and 135. Financial Progress for the year 2022-23 (as on Jan 2023) is 72.77% to
its release. (Expenditure:Rs.368.54 Cr to release: Rs 506.42 Cr ratio is 72.77%) scheme-wise
details is given in Appendix 9.4.

Major Progress of Labour Department

oo In Karnataka full medical care has been extended to about 45.76 lakhs insured persons
and about 180 lakhs of their family members through a network 10 ESI Hospitals
(ESIC Model Hospital, Rajajinagar & Peenya & Gulbarga). 116 full time ESI Dispensaries
and 02 Diagnostic Centres.
oo Karnataka Building and Other Construction Workers Welfare Board has registered
35.40 lakhs Building and Other Construction Workers as beneficiaries. 5,11,687
beneficiaries have registered newly during the year 2022-23.
oo Building and other construction Wokers Welfare Board has provided financial
assistance to eligible registered beneficiaries amounting to Rs. 4982.44 crores
under 25 various welfare and social security schemes so far. At present year 26,25,335
beneficiaries have availed benefits under various schemes amounting to Rs.1718.62

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crore. 9589.14 crore cess amount has been collected so far, in the year 2022-23 an
amount of Rs. 760.00 crore cess amount has been collected.
oo Providing bus passes at concessional rate to women workers working in Garment
factories in Bangalore under Vanitha Sangathi scheme.
oo The “Iconic Week” was held from 07-03-2022 to 13-03-2022 as part of the 75th
Independence Day (“Azadi Ka Amrit Mahotsav”) by providing various awareness
activities like auto announcement, vehicle branding, automated calls, radio
advertisement etc. were undertaken across the state to create awareness among
construction workers regarding social security and welfare schemes and registration
and renewal of registration of workers.
oo In order to resolve the issues of the workers, the Board undertook a unique
campaign known as “Karmika Adalat 1.0” for disposal of pending claim applications
of the construction workers from 16-08-2021 to 16-09-2021. A record 2,83,294 pending
applications were cleared, in Success of Karmika Adalat 1.0”, Karmika Adalat 2.0”
campaign was carried out from 15-07-2022 to 15-08-2022 and 2,04,883 applications
are cleared.
oo Karnataka state Unorganised Workers Social Security Board given accident benefit
of Rs 5,2548,498 in 111 cases and an amount of Rs 23,70,000 is given as educational
assistance to 237 students, during the year from April to December 2022.
oo Karnataka State Workers and Social Security(Ashadeepa scheme) Society reimbursed
to 355 SC/ST employers with an amount of Rs. 73,24,881 as on November during the
year.
oo Under e-SHRAM portal (www.eshram.gov.in), for creating a National Data Base of
Unorganised Workers (NDUW), more than 379 categories of unorgansied workers,
aged between 16-59 years and who are not covered under ESI, EPFO and income tax
payers can get them registered in e-Shram Portal themselves directly or by visiting
any Common Service Center (CSC) freely and get registration card immediately.
During the period 12,84,166 workers are registered. So far 73,74012 workers have been
registered across the state. Such registered workers are eligible to get the benefit of
Pradhana Mantri Suraksha Bima Yojana (PMSBY) of GoI for one year (It is an Accidental
Insurance Scheme. Death due to accident is Rs.2.00 lakh and upto Rs.1.00 lakh in case
of Permanent disability or Hospitalization).
oo Strikes and Lockouts – The number of strikes and lockouts indicate the level of
industrial peace in a State. Karnataka is by and large, a peaceful state as far as industrial
environment is concerned. No strikes, lockouts, layoffs reported during the year.
oo Absenteeism - In the year 2022-23 at the end of November 2022 month, the proportion
of absenteeism of industrial workers was 8.89% and during 2021-22 it is 12.20%.
Absenteeism in plantation labour was 35.31% in the previous year and during 2022-23
it is 35.99%.
Karnataka Labour Welfare Board is implementing 6 major welfare schemes and social
security schemes for the organised sector workers. The board has made a financial
progress of Rs. 3.62 crores for 6393 beneficiaries from April 2022 to December2022. Total
number of Firms comes under Board is 1500 with a matching contribution from the

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Government is Rs.3.75 Crores, Employer’s contribution is Rs.0.42 Crores and Employees

contribution is Rs.0.21 Crores.

Employment and Unemployment Survey-2020-21

Employment and Unemployment surveys (EUS) of National Sample Survey (NSS) are
the Primary source of Labour market data at National and State level in India. This is the
Annual report based on the data collected in Periodic Labour Force Survey (PLFS) during
July-2020 to June-2021. As this is annual Survey there is continuity in the data collection.

(a) Labour Force Participation Rate (LFPR): In Karnataka as per GoI PLFS-2020-21 LFPR for
persons aged 15 years and above according to UPSS status approach is 56.9%, whereas all
India average is 54.9% and comparative details is given in table 9.5.

Table 9.5 : Labour Force Participation Rate for Persons Aged 15 Years and above According to
UPSS Status Approach (in Percentage)

Rural Urban Urban & Rural

State
Male Female Person Male Female Person Male Female Person

Andhra Pradesh 78.0 51.7 64.8 76.7 31.7 53.4 77.6 45.1 61.1

Gujarat 78.7 43.1 61.2 78.0 19.1 49.4 78.4 33.1 56.3

Karnataka 80.4 41.9 60.7 75.2 26.0 50.5 78.4 35.9 56.9

Kerala 75.7 35.4 53.9 68.5 30.6 48.4 72.2 33.2 51.3

Maharashtra 76.8 43.5 60.5 73.4 24.9 49.3 75.4 36.0 56.0

Tamil Nadu 79.3 52.4 65.2 77.5 31.6 54.0 78.5 43.0 60.0

Telangana 76.7 56.9 66.8 75.0 28.0 51.9 76.0 45.4 60.8

All India 78.1 36.5 57.4 74.6 23.2 49.1 77.0 32.5 54.9
Source: Annual Report, PLFS 2020-21 Table-16, Page no.A-65, NSSO, MOSPI, GOI.

(b) Worker Population Ratio (WPR) under UPSS approach for Karnataka is 55.3%
which is more than all India average of 52.6% and comparative details is given in
table 9.6.

Table 9.6 : Worker Population Ratio Rate for Persons Aged 15 Years and above According to
Usual Principal & Subsidiary Status Approach (in percentage)

Rural Urban Urban & Rural

State
Male Female Person Male Female Person Male Female Person
Andhra Pradesh 74.3 51.0 62.7 72.5 29.4 50.2 73.8 43.9 58.6
Gujarat 77.9 43.0 60.7 74.9 17.7 47.2 76.6 32.4 55.0
Karnataka 78.6 41.0 59.4 72.7 24.7 48.6 76.4 34.9 55.3
Kerala 70.8 30.7 49.1 62.5 25.3 42.8 66.8 28.2 46.1
Maharashtra 74.5 43.1 59.1 68.9 23.0 46.2 72.3 35.0 53.9

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 Skill, Entrepreneurship Employment and Labour Welfare
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Rural Urban Urban & Rural

State
Male Female Person Male Female Person Male Female Person
Tamil Nadu 75.0 50.4 62.1 73.6 29.2 50.9 74.3 40.8 56.9
Telangana 73.4 55.7 64.6 70.1 24.9 47.8 72.1 43.4 57.8
All India 75.1 35.8 55.5 70.0 21.2 45.8 73.5 31.4 52.6

Source: Annual Report, PLFS 2020-21 Table-17, Page no.A-70, NSSO, MOSPI, GOI.

(c) Unemployment Rate (UR)

Lowest unemployment rate is recorded in Karnataka(Urban Area) among major states

in the country. Karnataka is 2.7% for all persons i.e., urban and rural put together which
lesser as compared to All India level rate of 4.2% and comparative details is given in
Table 9.7.

Table 9.7 : Unemployment Rate among Persons Aged 15 Years and above According to Usual
Principal & Subsidiary Status Approach (%)

Rural Urban Urban & Rural

State
Male Female Person Male Female Person Male Female Person
Andhra Pradesh 4.7 1.4 3.3 5.4 7.2 6.0 4.9 2.7 4.1
Gujarat 1.0 0.3 0.8 4.0 7.1 4.6 2.3 2.0 2.2
Karnataka 2.2 2.0 2.1 3.4 5.0 3.8 2.6 2.8 2.7
Kerala 6.4 13.4 8.9 8.7 17.4 11.6 7.5 15.1 10.1
Maharashtra 2.9 0.9 2.2 6.1 7.4 6.5 4.1 2.7 3.7
Tamil Nadu 5.4 3.8 4.8 5.1 7.5 5.8 5.3 5.0 5.2
Telangana 4.3 2.2 3.4 6.5 11.1 7.7 5.2 4.4 4.9
All India 3.8 2.1 3.3 6.1 8.6 6.7 4.5 3.5 4.2

Source: Annual Report, PLFS 2020-21 Table-18, Page no.A-75, NSSO, MOSPI, GOI.

Employment in Public and Private Sectors (Industry group-wise)

The organized sector employment by industry group reveals that, there was an increase
in employment, in financial and insurance activities, professional, scientific, and technical
activities, public Administration & Defence sector and compulsory social security
activities. Whereas there was decrease in employment in agriculture, forestry & fishing
sector, mining & quarrying activities, manufacturing sector, electricity, gas, steam and
air conditioning supply activities, construction sector, Wholesale, retail trade, repair of
motor vehicles & motor cycles sector, transportation and storage sector, information and
communication sector, education sector and human health & social work activities.

Further, organized sector employment has remained static in water supply; sewage,
waste management & remediation activities, accommodation and food service activities,
real estate activities, administrative and support service activities, arts, entertainment &
recreation and other service activities.

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 Skill, Entrepreneurship Employment and Labour Welfare
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Employment Exchange Statistics

The number of job seekers as per the live register figures of employment exchanges was
2.25 lakhs in November-2022 compared to 2.34 lakh at the end of March-2022, decrease
of 3.70 percent. There was overall Increase of 1.62% in Matriculates’ and Stenographers,
and decrease of 15.23% in Post Graduates, 6.95% in Graduates, 10.60% in Diploma holders,
17.49% ITI and other certificate holders, and 8.19% in Below matriculation. Registrants on
the Live Registers of Employment Exchanges in Karnataka are given in Table 9.8.

Table 9.8 : Registrants on the Live Registers of Employment Exchanges in Karnataka

At the end of Variation

Registrants
March 2021 March 2022 Nov 2022 (Nov-22 /March-22) %.

Post-Graduates. 3516 3250 2755 -15.23

Graduates. 45351 38795 36099 -6.95
Diploma Holders. 12290 11792 10545 -10.60
I.T.I. Apprenticeship, 42276 49794 41082 -17.49
Other Certificate Holders.
Matriculates and 183015 116567 118464 1.62
Stenographers.
Below Matriculation. 30557 18019 16543 -8.19
Total 317005 238217 225488 -5.34

Source: Department of Employment Training GoK.

Wage Employment Programmes

(a) Under MGNREGA As on 23-01-2023, an amount of Rs. 5944.13 Crores has been spent
and 1098.59 lakh person days wage employment has been generated through which
27.58 lakh households have been provided employment. Progress achieved under
MGNREGA district wise details is given in Annexures 9.5(a), 9.5(b) & 9.5(c), and 9.5
(b) Wage employment generated under State Government major programmes is 14.35
crore Man days between April 2022 to November 2022
(c) Several self employment individual schemes are also implemented by Karnataka
State Finance Corporation, different welfare and other departments.Under Stree
Shakti Programme 3298groups taken loan and 12177 SHG groups benefited Revolving
fund during the year upto November2022
d) Pension: Directorate of Social Security and Pension, Revenue Department of the
Government is providing social security benefits. During the year upto November-2022,
numbers in thousands, under old age pension for 1757 beneficiaries, Physically
handicapped pension for 916,Widows pension for 1759 and Sandhya Suraksha Yojane
pension for 2994 beneficiaries availed the pension

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 Skill, Entrepreneurship Employment and Labour Welfare
343

9.4 CHALLENGES
oo Through the Industry Connect program (Demand Driven Training), the setting up of
Industry Linkage Cell, in a bid to empanel industries as a training partner to provide
demand-based, employment linked skill training programs in their existing facilities
and then absorbing them into the industry post training.
oo Skill on Wheels to provide short term training and placement to candidates in the
most backward and rural areas of the state in their own places of residence.
oo In the Skill Hub, youth undergo Career Counselling, Job and Skill Training,
Entrepreneurship Guidance, Softskill Training and other programs to build capacity.
Currently 90 Candidates have been trained.
oo The Karnataka Skill Development Corporation has initiated the “One District, One
Skill” program, and under it, the 31 Districts are in the process of training 100 artisans
in modern techniques and equipment for the traditional skills of their region, to
empower them in self employment and entrepreneurship, give relevant training,
market linkage, and credit linkage support to them.
oo Unorganized sector workers majority are self employers, having no fixed yearly/
monthly earnings. Hence no methodology used for calculating their financial data.
oo Occupational safety and wage compensation based on the risk involved. Risk
coverage for risky jobs (hazardous industries)
9.5 WAY FORWARD FOR ACHIEVING $1 TRILLION GDP
oo Skilling the organized sector workforce and bringing them under the ambit of
institutions could significantly increase the labour income. In addition, this should be
supported with credit linked back ended subsidy for starting MSME.
oo Provide adequate wages and treating them on par with the formal sector through
developing institutions.
oo Linking unemployed to MSMEs for skilling/upskilling through industrial associations
by utilizing funds of National Apprenticeship Promotion Scheme
oo To establish skill labs through public private partnership in schools and colleges,
for the afternoon sessions, to upskill our population, for generating higher income
prospects. Strengthening skilling infrastructure at ITIs and Polytechnics, through
partnerships with industry leaders such as Siemens, Tata Technologies, to train the
workforce on emerging technologies.
oo Skill Department envisages to skill 5 lakh youth annually, of which 2.5 lakh youth
shall be targeted under various SDEL schemes. There is need for vocational training
centres in 48,393 Primary and Higher secondary schools and 3,870 colleges.
oo “Centre of Skill Excellences” to be built to serve at levels of the skill competency,
Competency in collaboration with Industries.
oo Trainers at all these Centers of Skill excellence will have to be trained and should be
able to demonstrate skills at the level of India Skills Competition.
oo Instituting Human Resource Development Fund (HRDF) will be explored where
certain level of contribution comes from industries based on the turnover and
manpower strength for Reskilling and Upskilling of their employees.

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 Skill, Entrepreneurship Employment and Labour Welfare
344

oo A Skill gap studies to be conducted for mapping work force requirement and supply
for each skill sector. International Centre of Skill Excellence should be established at
the State level.
oo Youth aspiring for work in other countries should go through mandatory training
in Skill Standards of that country/ International Skill Standards, Language training
and Cultural Training. IMC-K has been Established for this purpose and 8 migrant
research centres and migrant information centres have been established.
oo National Rural Livelihood Mission will strengthen capacity of the staffs at all levels
including State, District and Blocks for more effective services. It also scales up
the implementation of Vulnerability Reduction Program and provides financial
assistance. Sanjeevini also aims to fulfill its targets with convergence between the
line departments and community institutions for effective implementation of various
convergence program like Agri Nutri-garden, Cattle sheds, poultry, Van Dhan Vikas
Kendrass and formation of Producer Groups / Farmer Producer’s Organization etc
along with LoKOS initiative, Stree SamarthyaYojane and Lakpathi Didi in the taluks
by the end of the year 2022-23.
oo Bridging the digital divide and strengthening non-digital infrastructure is required
among unorganized workers.
oo In Section 3(4) of the Unorganized Workers Social Security Act, 2008, appropriate
welfare schemes may be formulated and implemented from time to time, including
schemes for providing social security facilities to unorganized workers, and suitable
measures will be taken to formulate and implement the social security schemes
provided for in the Act in coming years.
oo Department is planning to start Tele-Medicine facility in the interest of Insured
Persons and their family members. Labour Department is planning to install the
Point of Care Digital Diagnostic & Telemedicine Kiosks in all ESI Dispensaries in
the State The Department is planning to start Oxygen Plant in all ESI Hospitals in
the State and is planning to establish new ESI Hospitals at Tumkur, Udupi, Koppal,
Doddaballapur, Bommasandra, Bellary, Harohalli, Shivamogga & Narasapu The
Department is planning to upgrade ESI Hospital, Davanagere and Hubli from 50 to
100 bedded hospitals.
oo Constructions workers welfare fund should be efficiently utilized for providing basic
entitlements.
oo To declare a district as “child and adolescent labour free zone action will be taken for
implementation by the District Commissioners.
oo Labour centric industries like coffee beans, jaggery sector etc to promote more for
unorganized worker’s employment.
oo Employment of workers in the industrial sector is second largest after the employment
of workers in the agriculture sector in the country. Hence, it is very essential to ensure
occupational safety and health of workers in the factories.
oo Karnataka needs a comprehensive framework and policy to gather more data and
generate an Employment Policy to enhance job opportunities for its citizens in all
sectors.

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 Skill, Entrepreneurship Employment and Labour Welfare
345

APPENDIX 9.1

Deen Dayal Antyodaya Yojana – National Urban Livelihood Mission (DAY-NULM) 2022-23
(Physical & Financial Target Achievement) As on November -2022

Name of the Physical Financial (Rs. in Lakhs)

Component Subject Target Achievement % Target Achievement %

SHG Target 7000 6059 86.55 3986.02 809.71 20.41

SHG Revolving
6000 5428 90.47
Social Fund
Mobilization
ALF Target 500 255 51.00
&
Institutional ALF Revolving
Development 500 108 21.60
Fund
Capacity
350 178 50.86
Building ALF
Employment Skill Training 5000 - - 1388.75 948.13 68.27
through Skill
Training & EDP 7775 2769 35.61
Placement

Self- SEP Individual 3500 1358 38.80 587.00 183.89 31.33

Employment
SEP Group 158 75 47.47
Programme
(Individual & SHG Credit
Group) 3500 1036 29.60
Linkage
Orientation on
implementation
Capacity at ULB’s level for 550 - - 692.13 423.76 61.23
Building and CAO/CO/CMM/
Training MTO’s
SMM’s / CMM /
MTO’s Salaries
Shelter
New
for Urban 5 1 20.00 2327.72 957.76 41.15
Construction
Homeless
Operational &
Maintenance 78 78 100.00
Functioning
O &M New
Support to 59 17 28.81
(approved)
Urban Street
Vendor O & M New
(Fresh Target)
Proposals to 11 1 9.09
be received &
approved

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 Skill, Entrepreneurship Employment and Labour Welfare
346

Name of the Physical Financial (Rs. in Lakhs)

Component Subject Target Achievement % Target Achievement %

Refurbishment
(Fresh target)
proposals to be 17 8 47.06
received and
approved
Training for
ALF members
250 - -
on shelter
management
Executive
Committee
34 34 100.00
Meeting
expenses
Shelter
Management
Support to Committee 166 117 70.48
Urban Street meeting
Vendor expenses
SAVIOUR App
maintenance
1 1 100.00
cost (AMC &
Server charges
Town vending
committee 5112 1980 38.73 502.10 521.19 103.81
(Sitting Fee)
Vending Plan
and Market 10 4 40.00
Development
Sitting fee
for Grievance
277 - -
redressal
committee
A&OE A & OE - - - 250.00 996.21 398.48
IEC - - - 284.00 46.40 16.34
Total 9999.72 4887.05 48.87

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 Skill, Entrepreneurship Employment and Labour Welfare
347

APPENDIX 9.2

Details of Aspirant registrations on Kaushalkar.com as on Nov 2022 Age (18 to 50 Years)

Regis- Specially
District Female Male Other Minority General Sc St
trations Abled

Bagalkote 52775 21518 31257 19 183 37740 10684 3467 682

Ballari 69142 22145 46997 9 145 38856 17081 12433 618

Belagavi 77998 27378 50620 42 287 56080 14050 5346 2193

Bengaluru Rural 19191 7690 11501 4 37 12133 5590 1267 160

Bengaluru 75835 28878 46957 18 209 53791 18394 2444 979

Urban

Bidar 42151 13660 28491 24 91 23081 12200 6492 263

Chamarajanagar 18790 9545 9245 1 67 7907 8405 2199 211

Chikballapur 27851 12486 15365 8 77 15573 8490 3538 165

Chikmagalur 30590 15165 15425 8 146 19965 8507 1747 217

Chitradurga 38283 18947 19336 14 125 19731 11054 7083 276

Dakshin 32578 17691 14887 13 181 26984 3238 2038 124

Kannada

Davangere 34506 17031 17475 12 235 21443 8386 4164 266

Dharwad 56545 24807 31738 14 353 43560 8818 3402 398

Gadag 50193 25115 25078 54 219 37406 8673 3426 415

Hassan 46253 23805 22448 7 287 30798 13114 1848 199

Haveri 34949 15166 19783 21 150 24607 6085 3732 354

Kalburagi 96522 44418 52104 46 623 65886 26919 2306 742

Kodagu 8798 5390 3408 1 67 6069 1896 694 71

Kolar 30331 12286 18045 5 77 18396 9986 1778 89

Koppal 34440 14573 19867 18 172 23426 6594 3844 386

Mandya 32691 16996 15695 6 77 23496 7976 951 185

Mysore 64801 31527 33274 30 238 37009 18172 8698 654

Raichur 85718 26803 58915 32 344 55712 18577 10625 428

Ramanagara 17997 7113 10884 1 49 12256 4588 681 422

Shivamoga 33381 15649 17732 8 175 23325 7616 2047 210

Tumkur 54016 26110 27906 17 107 35089 13413 4944 446

Udupi 16471 8449 8022 3 115 12818 1946 1491 98

Uttar Kannada 22406 9415 12991 10 99 18760 2668 760 109

Vijayanagar 392 86 306 0 8 187 129 67 1

Vijayapura 43436 13825 29611 13 422 30596 10663 1431 311

Yadgiri 22994 8353 14641 11 201 14557 5218 2839 168

Total 1272024 542020 730004 469 5566 847237 299130 107782 11840

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 Skill, Entrepreneurship Employment and Labour Welfare
348

APPENDIX 9.3
Unorganized workers Target for Karnataka by GoI in e-SHRAM portal District wise details
District Wise target under NDUW (E-Shram)
Sl.No District Target
1 Bagalkote 584302
2 Belagavi 1480561
3 Bellary 760087
4 Bengaluru Division 1 2978452
5 Bengaluru Division 2
6 Bengaluru Division 3
7 Bengaluru Division 4
8 Bengaluru Division 5
9 Bengaluru Division 6
10 Bengaluru Division 7
11 Bengaluru Rural 307006
12 Bidar 527357
13 Chamarajanagar 316909
14 Chikkaballapur 388709
15 Chikmagaluru 351571
16 Chitradurga 514978
17 Dakshina Kannada 646198
18 Davanagere 601633
19 Gadag 329289
20 Hassan 549640
21 Haveri 495171
22 Hubli 571922
23 Kalaburgi 794749
24 Kodagu 173310
25 Kolar 477840
26 Koppala 430799
27 Mandya 559543
28 Mysore 928445
29 Raichur 596681
30 Ramanagar 334240
31 Shivamogga 542212
32 Tumkur 829411
33 Udupi 363951
34 Uttar Kannada 245654
35 Vijayapur 673432
36 Yadagiri 363951
37 Yallapura 200000
Total 18918003

Source : KSUWSSB, GoK

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 Skill, Entrepreneurship Employment and Labour Welfare
349

APPENDIX 9.4
Labour Department Financial Progress for the year 2022-23 till the end of January 2023

Admin/Salary

Admin/Salary

Admin/Salary
Expenditure
Productive

Productive

Productive
Allocation

Allocation

Allocation

Allocation
Scheme

(BE+SE)

Release

Release

Release
Name

Total

Total
HOA

Exp

Exp
SE1

OB
BE

Commiss-
2230-01-
ioner of 5.36 0.00 0.00 5.36 5.36 0.00 5.36 5.94 0.00 5.94 4.57 0.00 4.57
001-0-01
Labour
Enforce-
2230-01- ment of
33.40 0.00 0.00 33.40 33.40 0.00 33.40 33.81 0.00 33.81 26.76 0.00 26.76
101-0-01 Labour
Laws
2230-01-
Ashadeep 2.50 0.00 1.78 4.28 2.50 2.50 0.00 1.88 1.88 0.00 1.60 1.61 0.00
101-0-05
Karnataka
Labour
2230-01- Welfare
35.00 0.00 0.00 35.00 35.00 35.00 0.00 11.25 11.25 0.00 3.63 3.63 0.00
103-4-00 Fund
Contri-
bution
Child
2230-01- Labour
4.00 0.00 0.14 4.14 4.00 4.00 0.00 3.00 3.00 0.00 2.75 2.76 0.00
103-6-01 Rehabili-
tation
Insurance
2230-01-
Scheme for 0.01 0.00 5.18 5.19 0.01 0.01 0.00 4.76 4.76 0.00 5.06 5.06 0.00
103-7-03
Drivers
Karnataka
State
Unorgani-
2230-01-
sed Labour 0.01 1.00 5.62 6.63 1.01 1.01 0.00 1.01 1.01 0.00 2.66 2.66 0.00
111-0-05
Social
Security
Board
State
Institute
for Labour
2230-01- Studies in
1.00 0.00 0.00 1.00 1.00 1.00 0.00 0.75 0.75 0.00 0.72 0.72 0.00
277-0-01 Association
with
National
Law School
Construc-
4250-00- tion of
5.00 0.00 0.00 5.00 5.00 5.00 0.00 3.75 3.75 0.00 3.06 3.06 0.00
201-0-04 Karmika
Bhavan
Employees
State
2210-01- Insurance
491.86 0.00 0.00 491.86 491.86 304.91 186.95 424.60 241.63 182.97 305.78 167.58 138.19
102-0-01 Scheme
- Medical
Services
Employees
State
2210-02- Insurance
0.27 0.00 0.00 0.27 0.27 0.00 0.27 0.24 0.00 0.24 0.15 0.00 0.15
101-2-03 -Ayurvedic
Dispensa-
ries
2230-01- Inspector of
16.15 0.00 0.00 16.15 16.15 0.00 16.15 15.43 0.00 15.43 11.80 0.00 11.80
102-0-01 Factories
Total 594.56 1.00 12.72 608.28 595.56 353.43 242.13 506.42 268.03 238.39 368.54 187.08 181.47
Source : Avalokana, Planning Department, GoK.

Karnataka Economic Survey 2022-23

 APPENDIX 9.5 (A) 350

Financial Performance Under MGNREGA during the Financial Year 2022-23 (Upto 23rd Jan-2023) (Rs. in Lakhs)

Release of Last FY
Opening Inter-district fund
but Received during Borrowed Fund
Balance(OB) Release transfer
the Current FY
from
Authori- From Total
Sl. State Misc Re- Fund
District sation of other Fund Availa-
No Fund Reci-ept funded received
Entered EFMS district transfer bilty
CB as OB Centre State (*) to to from
OB districts or Revol- to other
district/ other
ving district
state districts

Karnataka Economic Survey 2022-23

Fund
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1 Bagalkote -345.92 0 0 0 23457.24 0 0 0 0 0 23111.33
2 Ballari -23.99 0 0 0 19609.25 0 0 0 0 0 19585.26
3 Belagavi -509.66 0 0 0 67255.06 1 0 0 0 0 66746.4
4 Bengaluru 0.49 0 0 0 602.86 0 0 0 0 0 603.35
Bengaluru
5 0 0 0 0 7447.75 0 0 0 0 0 7447.75
Rural
Skill, Entrepreneurship Employment and Labour Welfare

6 Bidar 169.52 0 0 0 26015.28 0 0 0 0 0 26184.8

Chamaraja
7 -156.46 0 0 0 11727.67 0 0 0 0 0 11571.22
Nagara
Chikka-
8 -465.46 0 0 0 18775.18 0 0 0 0 0 18309.71
ballapura
Chikka-
9 -170.52 0 0 0 15610.11 0 0 0 0 0 15439.59
magaluru
10 Chitradurga -295.72 0 0 0 27858.38 0 0 0 0 0 27562.66
Dakshina
11 59.76 0 0 0 5776.06 0 0 0 0 0 5835.81
Kannada
12 Davanagere 25.8 0 0 0 16856.22 0 0 0 0 0 16882.02
13 Dharwar 20.35 0 0 0 13943.52 0 0 0 0 0 13963.87
14 Gadag -56.2 0 0 0 13635.73 0 0 0 0 0 13579.53
15 Hassan -141.45 0 0 0 22380.27 0 0 0 0 0 22238.82
16 Haveri 287.15 0 0 0 22387.97 0 0 0 0 0 22675.12
 APPENDIX 9.5 (A)

Financial Performance Under MGNREGA during the Financial Year 2022-23 (Upto 23rd Jan-2023) (Rs. in Lakhs)

Release of Last FY
Opening Inter-district fund
but Received during Borrowed Fund
Balance(OB) Release transfer
the Current FY
from
Authori- From Total
Sl. State Misc Re- Fund
District sation of other Fund Availa-
No Fund Reci-ept funded received
Entered EFMS district transfer bilty
CB as OB Centre State (*) to to from
OB districts or Revol- to other
district/ other
ving district
state districts
Fund
1 2 3 4 5 6 7 8 9 10 11 12 13 14
17 Kalaburagi 1490.12 0 0 0 25098.11 0 0 0 0 0 26588.23
18 Kodagu -8.55 0 0 0 3131.48 0 0 0 0 0 3122.93
19 Kolar 280.35 0 0 0 20161.02 0 0 0 0 0 20441.37
20 Koppal 0.9 0 0 0 38329.31 0 0 0 0 0 38330.22
21 Mandya -160.36 0 0 0 12599.89 0 0 0 0 0 12439.54
22 Mysuru -57.51 0 0 0 15601.79 0 0 0 0 0 15544.28
23 Raichur 214.58 0 0 0 46706.28 0 0 0 0 0 46920.87
24 Ramanagara 494.97 0 0 0 29500.9 0 0 0 0 0 29995.87
25 Shivamogga 399.81 0 0 0 13826.14 0 0 0 0 0 14225.95
26 Tumakuru 20.12 0 0 0 21054.67 0 0 0 0 0 21074.79
27 Udupi 1.32 0 0 0 4259.25 0 0 0 0 0 4260.57
Uttara
28 -377.47 0 0 0 8098.28 0 0 0 0 0 7720.81
Kannada
29 Vijayanagara -50.28 0 0 0 25517.72 0 0 0 0 0 25467.44
30 Vijaypura -112.22 0 0 0 22027.94 0 0 0 0 0 21915.72
31 Yadgir 318.2 24065.91 0 24384.11
Skill, Entrepreneurship Employment and Labour Welfare

All District
0.00 851.67 0 0 0 623317.3 1 0 0 0 0 624169.9
Total
State Fund 12552.97 58390.68 0 0 98090 0 -323762
Grand Total
12552.97 59242.35 0 0 0 623317.3 98091 0 0 0 0 300408.4
351

Karnataka Economic Survey 2022-23

Of State

Source : RDPR, GoK

 APPENDIX 9.5(B) 352

Financial Performance Under MGNREGA during the Financial Year 2022-23 (Upto 23rd Jan-2023)
(Rs. in Lakhs)

Cumulative Expenditure Payment due**

Cumu-
lative LB Actual Expenditure Adm.Exp On
Estimation %age Semi-
Sl. Semi- On Un-
District of Expen- Utiliza- Balance skilled On
No. Non- Total skilled Tax Total
diture upto Un-skilled skilled Total tion and Material
Reporting and Material Tax Rec Exp Rec Wage
Wage Adm. Exp Skilled
month Skilled Exp
Wage Wage

Karnataka Economic Survey 2022-23

1 2 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

1 Bagalkote 0 12967.39 131.16 9383.17 288.03 678.17 0 678.17 23447.93 101.46 -336.6 110.45 19.3 4130.19 160.71 4420.65

2 Ballari 0 14059.82 150.61 4923.3 144.28 326.88 1.46 328.35 19606.35 100.11 -21.09 61 32.49 1222.14 44.69 1360.32

3 Belagavi 0 32596.28 572.94 25262.35 1193.65 1507.98 8.81 1516.79 61142.01 91.6 5604.38 282.45 51.93 10273.41 669.82 11277.61

4 Bengaluru 0 294.87 0.08 245.57 3.99 19.87 0 19.87 564.37 93.54 38.99 6.48 1.6 60.11 3.5 71.69

Bengaluru
5 0 4821.01 11.01 2332.04 61.94 210.89 9.82 220.71 7446.71 99.99 1.04 60.67 0 1128.69 46.25 1235.61
Rural

6 Bidar 0 13394.98 20.37 10362.39 1104.8 549.8 11.03 560.83 25443.37 97.17 741.43 158.73 0 5823.08 671.58 6653.39
Skill, Entrepreneurship Employment and Labour Welfare

Chamaraja
7 0 5524.49 50.43 5585.49 195.3 312.47 0.06 312.53 11668.24 100.84 -97.03 109.87 2.32 2495.75 127.29 2735.23
Nagara

Chikka-
8 0 8570.63 70.78 8439.9 712.88 433.3 2.63 435.93 18230.12 99.57 79.59 125.68 2.06 2666.38 228.93 3023.05
ballapura

Chikka-
9 0 6709.55 49.94 6941.13 0.29 411.68 0.02 411.7 14112.6 91.41 1326.99 81.81 22.41 1531.66 0.23 1636.11
magaluru

10 Chitradurga 0 11824.78 140.73 13882.27 3.95 499.33 13.65 512.99 26364.71 95.65 1197.95 114.49 8.74 2488.88 0.02 2612.13

Dakshina
11 0 4032.28 44.09 1380.22 70.5 247.53 0 247.53 5774.61 98.95 61.2 34.03 9.34 967.55 57.48 1068.4
Kannada

12 Davanagere 0 8186.52 95.45 6353.81 210.94 554.56 0 554.56 15401.27 91.23 1480.75 76.22 8.04 2053.27 90.87 2228.4

13 Dharwar 0 5973.93 97.87 6156.59 229.43 321.37 0 321.37 12779.19 91.52 1184.68 161.82 3.65 2423.31 103.94 2692.72

14 Gadag 0 7495.4 93.88 5386.97 237.18 414.76 3.93 418.68 13632.11 100.39 -52.58 120.49 16.09 1045.59 40.14 1222.31

15 Hassan 0 12239.42 108.72 8204.57 37.54 893.53 10.54 904.07 21494.32 96.65 744.5 98.04 4.97 1832.52 45.05 1980.58

16 Haveri 0 11881.32 89.76 8747.19 378.35 479.39 6.25 485.64 21582.26 95.18 1092.86 251.75 5.77 4965.53 325.93 5548.98

17 Kalaburagi 0 15679.43 162.11 8131.59 143.28 486.93 15.53 502.46 24618.88 92.59 1969.35 141.91 0.57 3154.79 65.75 3363.02

18 Kodagu 0 1653.41 0 1192.25 101.48 139.02 1.44 140.46 3087.6 98.87 35.32 6.11 0.04 325.58 28.77 360.5

19 Kolar 0 10313.77 72.94 8510.04 596.99 581.82 7.98 589.8 20083.55 98.25 357.82 111.73 0 3080.34 218.71 3410.78
 APPENDIX 9.5(B)

Financial Performance Under MGNREGA during the Financial Year 2022-23 (Upto 23rd Jan-2023) (Rs. in Lakhs)
Cumulative Expenditure Payment due**
Cumu-
lative LB Actual Expenditure Adm.Exp On
Estimation %age Semi-
Sl. Semi- On Un-
District of Expen- Utiliza- Balance skilled On
No. Non- Total skilled Tax Total
diture upto Un-skilled skilled Total tion and Material
Reporting and Material Tax Rec Exp Rec Wage
Wage Adm. Exp Skilled
month Skilled Exp
Wage Wage

20 Koppal 0 21710.76 280.7 11673.97 600.73 629.48 0.84 630.32 34896.48 91.04 3433.73 296.54 52.85 2466.76 161.2 2977.35

21 Mandya 0 6686.71 84.99 5043.73 179.42 426.79 6.58 433.37 12428.22 99.91 11.32 147.83 4.58 3059.65 143.88 3355.94

22 Mysuru 0 7431.53 61.86 7520.42 114.07 361.03 0 361.03 15488.92 99.64 55.36 175.4 0.22 2033.97 41.74 2251.33

23 Raichur 0 26862.71 332.27 13813.82 1110.29 1113.84 161.09 1274.94 43394.02 92.48 3526.84 191.09 51.11 6969.19 451.6 7662.99

24 Ramanagara 0 10806.78 85.99 14668.57 320.89 546.36 1.08 547.44 26429.68 88.11 3566.19 97.18 6.75 2542.63 115.9 2762.46

25 Shivamogga 0 8889.78 184.57 3796.85 112.01 515.95 7.48 523.43 13506.63 94.94 719.31 65.14 30.7 1194.78 28.77 1319.39

26 Tumakuru 0 10406.76 199.2 8476.87 79.88 660.25 4.33 664.58 19827.29 94.08 1247.5 176.18 21.8 5939.01 61.88 6198.87

27 Udupi 0 2391.69 23.2 1577.81 4.31 135.66 0.08 135.74 4132.75 97 127.82 21.73 1.79 690.87 4.38 718.77

Uttara
28 0 4366.62 59.25 3117.25 152.15 321.45 0 321.45 8016.74 103.83 -295.93 64.74 4.61 689.22 47.01 805.58
Kannada

29 Vijayanagara 0 18003.21 231.43 6563.77 287.92 0 0 0 25086.33 98.5 381.11 158.54 42.9 1472.92 82.24 1756.6

30 Vijaypura 0 10907.38 147.9 9375.07 3.33 523.96 0 523.96 20957.64 95.63 958.08 122.9 24.68 1366.13 2.07 1515.78

31 Yadgir 13210.2 43.15 8234.05 564.37 21 0 21 22072.77 90.52 2311.33 179.72 2.3 1905.73 181.74 2269.49

All District
0 329893.43 3697.4 235283 9244.17 14325.05 274.6 14599.68 592717.68 94.96 31452.21 3810.72 433.61 81999.63 4252.1 90496
Total

State Fund 1616.15 80.16 1696.3 1696.3 -325457.86

Grand Total
0 329893.43 3697.4 235283 9244.17 15941.2 354.8 16295.98 594413.98 197.3 -294005.65 3810.72 433.61 81999.63 4252.1 90496
Of State

Source : RDPR, GoK

Skill, Entrepreneurship Employment and Labour Welfare
353

Karnataka Economic Survey 2022-23

 APPENDIX 9.5(C)
Employment Generated during the year 2022-23 (Upto 23rd Jan-2023)
354

No. of Jobcard No. of Jobcard No.

Cumulative No. of HH issued Employment Employment
No. of Registered deleted in included in Employment Availed No. of of HH No. of
jobcards demanded offered
current YR current YR Fami- which Dis-
lies are abled
Sl
Districts Com- bene- bene-
No
pleted ficiary ficiary
House- House- House- House- House- House- Person 100 of land indivi-
Persons Persons Persons SCs STs Others Total Persons Persons Persons
hold hold hold hold hold hold days days reform/ duals
IAY

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

1 Bagalkote 270765 557509 1627 4690 22201 38906 47597 16628 206490 270715 118187 214191 115084 205968 101359 176983 4296847 1764 0 2252

Karnataka Economic Survey 2022-23

2 Ballari 172017 486679 74 1293 7105 18792 34707 44568 92449 171724 107268 241172 106657 238095 101381 218720 5131591 2237 0 1398

3 Belagavi 786885 1639685 636 2835 46446 74432 82101 59603 644793 786497 288989 460678 284413 448321 252876 386950 10714551 2279 0 3306

4 Bengaluru 59907 135856 28 89 9490 13320 16026 1610 38328 55964 3425 5795 3260 5356 2958 4886 96972 21 0 8

Bengaluru
5 114001 252045 1307 5022 12099 19709 23902 5795 84295 113992 37891 69585 35966 63740 33426 58387 1578284 343 0 546
Rural

6 Bidar 247162 479889 6785 18345 15021 27818 58610 36526 147503 242639 122157 208554 120452 202923 109886 181234 4347434 168 0 477

Chamaraja
7 223485 520084 93 1125 4340 9428 55077 23650 144286 223013 61224 104174 60073 100425 54232 88681 1794641 209 0 434
Nagara
Skill, Entrepreneurship Employment and Labour Welfare

Chikka-
8 224034 555286 169 1613 3844 9261 54014 30529 139019 223562 86263 157568 83911 149287 76338 132875 2807973 576 0 4176
ballapura

Chikka-
9 174477 396905 48 417 13283 22300 37752 7802 128584 174138 55628 104939 54169 100639 51615 95069 2176366 572 0 170
magaluru

10 Chitradurga 326774 783721 2272 17186 7468 17662 70508 64631 188633 323772 109877 193591 107255 184485 98117 165906 3837985 521 0 333

Dakshina
11 167108 353224 879 4070 17553 28170 19155 13220 134416 166791 29922 53236 29397 51637 28330 49597 1306346 389 0 74
Kannada

12 Davanagere 235581 538624 34 205 12913 26676 50365 32433 152532 235330 75510 140126 74016 135560 66329 118896 2650551 548 0 297

13 Dharwar 167783 411905 133 1641 13124 21466 12422 8554 146456 167432 56716 108706 55050 103166 50172 92261 1968874 227 0 199

14 Gadag 165328 410407 959 5848 5158 13648 27730 11988 123981 163699 90656 194084 89830 190235 78694 161311 2436927 234 0 886

15 Hassan 280265 660616 373 2700 9612 21321 47343 4805 227827 279975 109365 211210 105931 199503 98050 182119 3953678 1168 0 564

16 Haveri 263389 618784 143 1494 15170 29417 36913 26566 195393 258872 114389 229272 111609 220439 93989 181335 3903469 529 0 487

17 Kalaburagi 410869 875071 21339 61346 24700 45151 91198 5111 305058 401367 197863 365838 194928 354797 170937 301572 5165986 369 0 583

18 Kodagu 86208 188184 155 236 10948 16268 9433 5766 65834 81033 14688 25295 14133 23887 13290 22224 535904 77 0 150

19 Kolar 239134 595317 253 1630 5127 13306 63828 14105 161149 239082 85858 145700 83566 138956 77881 127169 3353507 424 0 487
 APPENDIX 9.5 (C)

Employment Generated during the year 2022-23 (Upto 23rd Jan-2023)

No. of Jobcard No. of Jobcard No.

Cumulative No. of HH issued Employment Employment
No. of Registered deleted in included in Employment Availed No. of of HH No. of
jobcards demanded offered
current YR current YR Fami- which Dis-
lies are abled
Sl
Districts Com- bene- bene-
No
pleted ficiary ficiary
House- House- House- House- House- House- Person 100 of land indivi-
Persons Persons Persons SCs STs Others Total Persons Persons Persons
hold hold hold hold hold hold days days reform/ duals
IAY

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

20 Koppal 298449 797087 612 43015 10362 44673 49490 37775 211099 298364 181481 394598 180577 390718 171389 360434 7459238 2330 0 3068

21 Mandya 344313 751852 449 2223 14106 24772 40870 3046 299721 343637 73858 122793 72095 117430 64963 103441 2194355 323 0 373

22 Mysuru 340525 850442 718 3710 18122 30678 60637 40045 233751 334433 75877 142359 74129 136087 67614 122471 2409484 622 0 221

23 Raichur 349945 823059 10796 37917 15220 38343 59857 73381 210412 343650 247560 511999 246047 504757 232948 464705 9845479 761 0 955

24 Ramanagara 203499 449985 3351 16103 3956 9351 34188 4256 163964 202408 95167 163350 93926 158658 85694 141094 3502742 785 0 328

25 Shivamogga 244624 567176 379 5958 8965 20922 47326 10788 186282 244396 102368 193211 101427 189255 91202 162735 2894341 340 0 558

26 Tumakuru 434444 1043813 6889 32868 11603 25383 68340 31137 334632 434109 109470 201257 106953 191801 96513 169821 3370720 387 0 520

27 Udupi 117591 237423 103 376 11067 21309 6671 6218 103896 116785 22599 40031 22375 39343 20826 36290 769649 296 0 60

Uttara
28 201315 449236 176 1375 19300 30052 13199 5771 177355 196325 49823 88469 49370 87133 43026 73747 1415576 225 0 132
Kannada

29 Vijayanagara 220470 593232 79 1627 6629 20127 55030 41777 123430 220237 129332 272634 128572 268987 117633 237326 6123501 3802 0 810

30 Vijaypura 345592 771301 1218 5228 28670 44255 66316 4379 274477 345172 113278 188867 109821 180669 98822 159364 3540781 634 0 1317

31 Yadgir 268028 528379 1445 5335 12393 29628 52253 26622 188575 267450 118591 194710 117146 190641 107579 172089 4275821 441 0 479

Total 7983967 18322776 63522 287520 415995 806544 1392858 699085 5834620 7926563 3085280 5747992 3032138 5572898 2758069 4949692 109859573 23601 0 25648

Source : RDPR.GoK
Skill, Entrepreneurship Employment and Labour Welfare
355

Karnataka Economic Survey 2022-23

 Skill, Entrepreneurship Employment and Labour Welfare
356

APPENDIX 9.5
District wise Progress Under MGNREGA 2022-23 (Upto 23rd Jan-2023)

Total Cumulative Works (No)

Person
Cumulative No. of HH
days Works
District Expenditure Provided Under
Generated Under Completed
(Rs. in Employ- Progress
(No) taken
Lakhs) ment (No)
Bagalkote 23447.93 4296847 101359 34804 19400 15404
Ballari 19606.35 5131591 101381 37920 10656 27264
Belagavi 61142.01 10714551 252876 130027 55758 74269
Bengaluru 564.37 96972 2958 3624 1392 2232
Bengaluru Rural 7446.71 1578284 33426 21309 8544 12765
Bidar 25443.37 4347434 109886 63903 19627 44276
Chamaraja Nagara 11668.24 1794641 54232 32741 13621 19120
Chikkaballapura 18230.12 2807973 76338 42033 17157 24876
Chikkamagaluru 14112.6 2176366 51615 41074 19061 22013
Chitradurga 26364.71 3837985 98117 70255 34799 35456
Dakshina Kannada 5774.61 1306346 28330 31044 12169 18875
Davanagere 15401.27 2650551 66329 26033 9820 16213
Dharwar 12779.19 1968874 50172 43391 22083 21308
Gadag 13632.11 2436927 78694 34907 10615 24292
Hassan 21494.32 3953678 98050 80756 30465 50291
Haveri 21582.26 3903469 93989 59898 7399 52499
Kalaburagi 24618.88 5165986 170937 68316 46407 21909
Kodagu 3087.6 535904 13290 7169 7422 -253
Kolar 20083.55 3353507 77881 62028 16537 45491
Koppal 34896.48 7459238 171389 59260 27719 31541
Mandya 12428.22 2194355 64963 45138 14808 30330
Mysuru 15488.92 2409484 67614 61459 27173 34286
Raichur 43394.02 9845479 232948 68914 28066 40848
Ramanagara 26429.68 3502742 85694 126392 72248 54144
Shivamogga 13506.63 2894341 91202 37103 15853 21250
Tumakuru 19827.29 3370720 96513 103374 32294 71080
Udupi 4132.75 769649 20826 19039 6612 12427
Uttara Kannada 8016.74 1415576 43026 34109 12121 21988
Vijayanagara 25086.33 6123501 117633 40112 19699 20413
Vijaypura 20957.64 3540781 98822 47168 26529 20639
Yadgir 22072.77 4275821 107579 53280 29058 24222
All District Total 592717.68 109859573 2758069 1586580 675112 911468
State Fund 1696.3
Grand Total of State 594413.98 109859573 2758069 1586580 675112 911468
Source : RDPR.GoK

Karnataka Economic Survey 2022-23

 10
CHA PT E R

ECONOMIC INFRASTRUCTURE

INTRODUCTION

Economic infrastructure refers to the facilities, activities and services which support
operation and development of other sectors of the economy.This chapter focuses on
Energy, Roads, transport Infrastructure and Communications and banking services.

Sustainable Development Goal 7 aims at ensuring access to affordable, reliable,

sustainable, and modern energy for all. For the year 2020-21, percentage of households
electrified and percentage of households using clean cooking fuel indicators, Karnataka
is the achiever with score 100. In SDG 13- Climate action, percentage of renewable
energy out of total installed generating capacity (including allocated shares) state is
the best as compared to neighbouring state Kerala(40.16) and India(36.37). For SDG
9(Industry, Innovation and infrastructure), State stands in 6th position. For the year 2020-
21, percentage of targeted habitations connected by all-weather roads under Pradhan
Mantri Gram Sadak Yojana (PMGSY) indicator, the state is achiever with a score of 100.
For the indicator, score as per Logistics Ease across Different States (LEADS), Gujarat is
best performing state 3.62(score 49), whereas Karnataka stands in 4th position with a
value of 3.37 (Score 40). Karnataka stands in 2nd position among the southern states in
Urban tele density (SDG Goal 9 indicator, number of mobile connections per 100 persons)
and for the indicator, number of internet subscribers per 100 population the state has
subscription of 69.35, followed by Gujarat (64.79), Tamilnadu(65.68), Punjab(84.35) and all
India (55.41).

10.1. POWER SECTOR

Power generation in the public sector is managed by the Karnataka Power Corporation
Limited (KPCL) whereas the Karnataka Power Transmission Corporation Limited
(KPTCL) deals with transmission of power and load despatch functions. As part of the
restructuring of the power sector in the State, the erstwhile Karnataka Electricity Board
(KEB) was restructured as KPTCL in 1999 by giving it a corporate status. As per the
Electricity Act 2003, KPTCL, being the State’s transmission utility, is not empowered to
trade in electricity. Therefore, the distribution companies directly procure power from
power generators, both public and private and ESCOMs own distribution network, and
use KPTCL’s transmission network to distribute electricity.

10.1.1 Power Generation

The total installed generation capacity both in the public sector and private sector
including the State’s share in the Central Generation Station (CGS) upto November 2022
is 31634.58MW. The installed capacity in the public sector is 13,601.35MW (including CGS
allocation) and the private sector’s share is 18033.23MW. In the private sector capacity, the
percentage share of renewable energy sources of power generation capacity (Excluding
the Share of IPP Thermal & Mini Hydel) to overall installed capacity is 47.21%. The status of
power sector in terms of both installed capacity and electricity generation for Karnataka
is provided in Table 10.1.
 Economic Infrastructure
358

Table 10.1 : Progress in Power Sector

2022-23
Source Units 2018-19 2019-20 2020-21 2021-22
(Upto Nov-22)
A. Installed Capacity
1. Public Sector
a) Hydel MW 3,680.00 3,681.00 3,681.00 3,681.00 3681.00
b) Wind energy MW 5.00 5.00 5.00 5.00 5.00
c) Thermal MW 5,020.00 5,020.00 5,020.00 5,020.00 5,020.00
d) Diesel plants MW 0 0 0 0.00 0.00
e) Solar PV plant MW 34 34 34 34.00 34.00
Total 8,739.00 8,740.00 8,740.00 8,740.00 8,740.00
f) Jurala Hydro MW 117.00 117.00 117.00 117.00 117.00
2. Private Sector
a) IPP Thermal (including MW 2,183.30 2,192.30 2,192.30 2197.30 2197.30
small thermal-conventional)
b) Mini Hydel MW 853.46 903.46 903.46 903.46 903.46
c) Wind energy MW 4,754.34 4,814.34 4,962.34 5144.14 5218.39
d) Co-generation & Biomass MW 1,837.19 1,870.19 1,870.19 1870.19 1870.19
e) Solar (including solar roof MW 6,093.38 7,266.19 7,355.01 7556.30 7843.89
top)
Total 15,721.67 17,046.48 17,283.30 17671.39 18033.23
3. Central Generating MW 4,158.00 4,865.00 4865.00 4744.35
Station Allocation
Total Installed Capacity 28,740.67 30,061.48 31,005.30 31,393.39 31,634.58
B. Electricity Generation(Net)
a) Hydel (KPCL) MU 11,857.65 13,622.00 12,232.53 13582.86 8681.16
b) Thermal(KPCL) MU 11,861.03 11,444.12 6,366.88 17143.42 7683.23
c) Wind MU 9,839.14 10,050.70 9,434.92 9376.45 6061.06
d) Solar PV plant MU 6,797.83 8,026.02 8,888.70 9281.34 4554.15
e) Mini Hydel MU 1,677.54 1,816.45 2,140.12 2346.35 1385.87
f) Co-gen and Bio-Mass MU 2,500.56 2,383.20 2,777.98 2976.83 722.31
g) Private sector MU 6,650.56 4,589.89 2,918.21 2548.04 1280.36
Total 51,184.31 51,932.38 44,759.34 57,255.29 30,368.14
C. Electricity imports
a) Central projects MU 23,205.01 22,665.07 23,060.76 18241.82 8100.11
b) Other States-Short Term MU 965.83 0
Total MU 24,170.84 22,665.07 23,060.76 18241.82 8100.11
Total Electricity supply MU 75,355.15 74,597.45 67,820.10 75,497.11 38,468.25

Source: KPCL, KPTCL, KREDL and PCKL.

YTPS not included in net generation
Note: Capacity of 0.82 MW has been added twice in the year 2010-11. The same has been rectified during
December-2018 and the Capacity is deducted in the cumulative Capacity.

The State has added 361.84MW of Generating capacity in renewable energy sources
during the FY 2022-23 (Upto Nov-22).The State is also in the forefront of adding

Karnataka Economic Survey 2022-23

 Economic Infrastructure
359

capacity addition in Renewable Energy Sector and there is constant increase in capacity
under this category.The availability factors of most of the generating plants have been
found to be relatively high suggesting an efficient preventive maintenance system being
in place.

10.1.1 Plant Load Factors (Capacity Utilisation)

The average cost of power generation is higher in thermal plants as compared to Hydel
plants and the State’s reliance on thermal plants for power generation has increased
over the years. As a result, the average cost of power generated has been increasing.
Power generation, Imports, T & D losses and consumption of power since 2017-18.

10.1.2 Purchase of power from other States and energy exchanges

Towards meeting shortages in electricity supply, Karnataka buys power from neigh-
bouring States, other States and from energy exchanges. The details of such purchases
during last three years & in 2022-23 (Upto Nov-22) are given in Table 10.2 (a&b). There is
increase in purchase from Renewable Energy Source / NCE of energy due to increase in
capacity addition.

Table 10.2(a): Procurement from other States through bilateral trade & purchase through
Energy exchanges:

Average rate
Year Energy in MUs Amount (Rs. in Crs)
Rs/kWh
2020-21 5.18 2.56 4.95

2021-22 502.64 * 212.53 4.23

2022-23 (Upto Nov-22) 224.13 194.89 8.70

*Out of 502.64 MUs, 466.13 MUs for REC premium recovery trade and 36.51 MUs for optimization / meeting
deficit

Table 10.2(b): Sale of Surplus power through over Arching Agreement / DEEP Portal tenders /
Energy exchanges (IEX& PXIL)

Amount Average rate

Year Energy in MUs
(Rs. in Crs) Rs/kWh

2021-22 6709.68 2895.62 4.32

2022-23 (Upto Nov-22) 4,271.29 2,476.40 5.80

Source: Power Company of Karnataka Limited

Karnataka Economic Survey 2022-23

 Economic Infrastructure
360

10.1.3 Power Transmission: Karnataka Power Transmission Utility (KPTCL)

The status of transmission infrastructure as at the end of Nov-2022 is given in Table 10.3.

Table 10.3: Power stations & transmission lines of KPTCL (as on 30.11.2022)

Voltage Level No. of stations Transmission Line in CKMs

400 KV 8 3,701.34

220 KV 127 12,841.24

110 KV 469 121,40.76

66 KV 709 12,498.95

Total 1,313 41,182.29

Source: KPTCL

The transmission lines of different voltage classes, new substations and capacity
augmentation in the existing substations added during the last 5 years from 2018-19 to
2022-23 (upto Nov-2022) are shown in Tables 10.3(a) and 10.3(b).

Table 10.3(a): Transmission lines of different voltage class added during the period
(Transmission line length in Ckms)

Voltage class 2022-23

2018-19 2019-20 2020-21 2021-22 Total
in kV (Upto Nov-22)

400 24.504 130.27 2.62 0 0 157.394

220 224.078 106.14 579.17 434.19 218.85 1562.43

110 202.617 202.68 260.96 654.58 310.41 1631.25

66 282.783 355.16 345.67 374.67 348.60 1706.88

Total 733.982 794.25 1188.42 1463.44 877.86 5057.95

Source: KPTCL
Table 10.3(b): Details of new sub stations added and capacity augmented during the last 5
years period.

New Sub-stations added

Voltage Class
(KVA) 2022-23
2018-19 2019-20 2020-21 2021-22 Total
(Upto Nov-22)

400 - 1 2 - - 3

220 4 3 6 10 3 26

110 10 9 12 21 4 56

66 21 19 16 10 7 73

Total 35 32 36 41 14 158

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Sub-stations capacity augmented

Voltage Class
(KVA) 2022-23
2018-19 2019-20 2020-21 2021-22 TOTAL
(Upto Nov-22)

400 - - - - -

220 4 1 5 7 9 26

110 26 23 38 58 47 192

66 30 60 76 107 78 351

Total 60 84 119 172 134 569

Source: KPTCL

Transmission & Distribution Losses: (T&D Losses)

The State Government has taken various measures to reduce T&D and AT&C losses.

Measures taken for reduction of T&D loss:

oo Bifurcation of lengthy HT / LT lines & overloaded 11KV feeders.

oo Re-conductor Ing of HT/LTlines and reduction of HT/LT ratio.
oo Providing additional transformers to release over loaded DTCs.
oo 100% Metering and Accuracy in Billing.
oo Load balancing and bifurcation of load.
oo Strengthening of Vigilance/MT Activities.
oo Replacing Electromechanical /Static/High precision energy meter.
oo Encouraging consumers to install energy efficient equipment’s.
Measures taken for reduction of AT&C Loss:

oo Accuracy and 100% billing of consumer installations.

oo 100% collectionefficiency.
oo Improving vigilance activities.
oo Periodical rating of HT & LT Installations.
Karnataka’s power sector has its T&D losses 16.34% in 2015-16and also 16.34% in 2021-22.
The utilities in the sector are making planned investment for strengthening and
augmenting the network for reduction of technical loss. Aggregate Technical &
Commercial (AT&C) losses during 2015-16 to 2021-22. The AT&C Loss which was 17.10% in
2015-16 has been brought down for 12.15% in 2021-22.Transmission loss for the year 2021-22
is 2.987%

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18

17.10 17.30
17.02 16.99
15.73
16.16 16.34
16
16.34
15.27
15.01 15.12 15.32
14 14.59

12 12.15

10
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

AT & C Loss T & D Loss

10.1.4 Power Consumption

As shown in Table 10.4, in the year 2021-22, the agricultural sector (water pumping
through irrigation pump sets) accounted for highest share of electricity consumed with
a share of 37.32% with domestic occupying a distinct second position with a share of
26.36%. However, in terms of paying for the electricity, the agricultural sector pays the
least whereas the commercial consumers pay the highest tariff.

Table 10.4: Electricity consumption by various category of Consumers

Consumption (MU) % of Sales Demand (Rs. in Crs) ARR Ps/Kwh

Category of 2022-23 2022-23 2022-23 2022-23

Consumers 2021-22 (Up to 2021-22 (Up to 2021-22 (Up to 2021-22 (Up to
Nov-22) Nov-22) Nov-22) Nov-22)

Industries 8085.12 6255.50 13.84 15.83 7796.50 6116.65 9.64 9.78

IP Sets 21802.53 12186.41 37.32 30.84 12530.60 7594.38 5.75 6.23

Domestic 13837.17 9964.41 23.69 25.22 10286.76 8097.89 7.43 8.13

LT Industries 2032.45 1472.33 3.48 3.73 1863.49 1454.37 9.17 9.88

Water Works
& Sewage 4499.14 3131.88 7.70 7.93 3131.62 2361.68 6.96 7.54
pumping

Commercial
5444.14 4580.06 9.32 11.59 6441.67 5559.27 11.83 12.14
Lighting

Public
1143.04 802.83 1.96 2.03 999.35 743.44 8.74 9.26
Lighting

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Consumption (MU) % of Sales Demand (Rs. in Crs) ARR Ps/Kwh

Category of 2022-23 2022-23 2022-23 2022-23

Consumers 2021-22 (Up to 2021-22 (Up to 2021-22 (Up to 2021-22 (Up to
Nov-22) Nov-22) Nov-22) Nov-22)

Others 1573.57 1117.71 2.69 2.84 2170.11 1627.10 13.79 14.56

Total 58417.98 39511.13 100.00 100.00 45220.10 33554.78 7.74 8.49

Source: ESCOMs
* After T & D losses as on 31.03.2022.
* ARR - Average Revenue Realisation.

10.1.5 Electricity Demand and Supply Status

Trends in peak demand for power and peak energy supply per day during the years 2012-
13 to 2022-23 (Upto November-2022) are given in Figure 10.1. It may be observed that
both the peak demand and peak energy supply per day are showing increasing trends
since 2012-13. The peak demand met during 2021-22 was 14818MW and in 2022-23 (Upto
Nov-22) met a 14725MW peak. The anticipated peak demand to be met during 2022-23 is
likely to be around 15300MW.

Figure 10.1: Trends in Peak Power Demand and Peak Energy Supply

14818 14725
16000 300
14367
13258
14000 12881
250

12000 10802
9508 10242
9549 275.27 285
9223 200
8761 242 259.15
10000 228 259.21

212 213
204
8000 150
172

6000
100

4000

50
2000

0 0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
(Upto Nov-22)
204 Peak Energy Supply (in MU) Linear (204)

Source: KPTCL

Figures 10.1(a) and 10.1(b) shows the trends in estimated gaps in demand and supply
for both power and energy. The power supply shortage was highest at 1709 MW in
2014-15 (Figure 10.1(a)) and energy supply shortage was highest at 4981 MUsin 2012-13
(Figure 10.1(b)).

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Figure 10.1(a): Power Supply & Demand Gap (in MW)

18000
16000 15300
14040 14451
13790
14000
11517 11882
12000 11258 10895
10473 10214
9550
10000
8000
6000
4000
1250 1709
2000 789 706 653 715
0 0 0 0 0
0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
(Upto
Nov-22)

Projected Demand for Power Shortage (in MWs)

(in MWs)

Source: KPTCL

Figure 10.1(b): Energy Supply and Demand Gap

90000
80628 81438 82233
78751
80000 76145
70287
67833 66146
70000 63001
60000 57248
53540
50000

40000

30000

20000

10000 4981 3977 3606

769 516.23 0 0 0 0 0 0
0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
(Upto
Nov-22)

Projected Demand for Power (in MUs) Shortage (in MUs)

Source: KPTCL

10.1.6 Vigilance efforts

The vigilance efforts by various authorities of the ESCOMs have contributed to the
reduction in AT&C losses (Table 10.5).

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Table 10.5: Vigilance efforts by various authorities of the ESCOMs in reducing theft and
pilferages.

No of Installations No. of Cases Penalty Imposed

Year
Inspected Detected (Rs. in Crs)
2014-15 4,08,955 93,412 157.62
2015-16 2,84,771 67,863 144.23
2016-17 5,20,387 82,223 164.04
2017-18 6,84,875 80,090 197.49
2018-19 5,83,303 64,348 165.76
2019-20 6,23,036 65,154 926.75
2020-21 243746 14546 63.019
2021-22 263915 12090 57.537
2022-23 (Upto Nov-2022) 623043 64009 141.42

Source:ESCOMs

The ESCOMs supply electricity to various category of consumers at different price slabs.
Details of revenue realized from the different categories of consumers are given in Table
10.6. This shows that during the year 2021-22 nearly 76.43% of the ESCOMs revenue arises
from LT category consumers even though they account for about 70.37% of the electricity
consumption. The HT industrial & commercial sector while accounting for only 18.25% of
the electricity sales contributes 24.52% of the total revenue earned in 2021-22. Electricity
supplied to HT Agriculture including lift irrigation fetches the lowest average revenue of
Rs. 4.33/kWh where as the LT commercial category provides highest revenue realisation
of Rs.10.92/kWh. Other than temporary installations, commercial LT consumers and HT
industrial and commercial consumers pay higher prices for electricity consumed.

Table 10.6: Electricity sales and revenue realization by categories of consumers

Average revenue
Sales (MU) Revenue (Rs. Crores) realization (Rs./
kWh)*
(Upto Nov-

(Upto Nov-

(Upto Nov-

Category Description
2022-23

2022-23

2022-23
2021-22

2021-22

2021-22
22)

22)

22)

LT1 BJ/KJ 916.51 590.75 601.56 510.89 6.56 8.65

LT2 AEH 13,080.11 9,442.42 9,697.37 7,647.93 7.41 8.10
LT3 Commercial 3,429.67 2,729.67 3,746.65 3,115.41 10.92 11.41

LT4 Irrigation 21,159.55 11,826.57 12,253.42 7,396.36 5.79 6.25

Pump sets

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Average revenue
Sales (MU) Revenue (Rs. Crores) realization (Rs./
kWh)*

(Upto Nov-

(Upto Nov-

(Upto Nov-
Category Description

2022-23

2022-23

2022-23
2021-22

2021-22

2021-22
22)

22)

22)
LT5 Industries 2,032.45 1,469.33 1,862.79 1,453.97 9.17 9.90

LT6 Street lights 3,710.99 2,612.32 2,929.50 2,222.17 7.89 8.51

and water
supply
LT7 Temporary 320.12 251.52 729.54 598.58 22.78 23.80
Installations
Total LT 44649.40 28,922.58 31,820.83 22,945.31 7.13 7.93
HT1 Water 1,931.53 1,323.50 1,199.48 882.50 6.21 6.67
supply
installations
HT2 HT 10,658.78 8,576.93 11,088.05 9,046.69 10.40 10.55
Industrial &
Commercial
HT3 Lift 872.76 411.93 377.74 262.09 4.33 6.36
Irrigation

HT4 HT 142.61 105.45 113.22 88.20 7.94 8.36

Residential

HT5 HT 157.44 170.74 242.55 267.46 15.41 15.66

Temporary

Total HT 13,763.12 10,588.55 13,021.04 10,546.94 9.46 9.96

Others / Misc. Income 5.46 - 378.23 62.53 - -
Grand Total 58417.98 39511.13 45,220.10 33,554.78 7.74 8.49

Details of energy sales, average tariff and average cost of power supplied by ESCOMs are given in
Table 10.7.

Table 10.7: Energy sales, average tariff and average cost of power supplied by ESCOMs.

Energy sales(MU) Average tariff (Rs./kWh) Average cost (Rs./kWh)

2021-22 2022-23 2021-22 2022-23 2021-22 2022-23

ESCOMS
(KERC (KERC (KERC
(Actuals) (Actuals) (Actuals)
approved) approved) approved)

BESCOM 26684.73 29396.63 7.85 8.70 8.42 8.70

MESCOM 5168.52 5387.54 7.65 8.13 7.94 8.13

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Energy sales(MU) Average tariff (Rs./kWh) Average cost (Rs./kWh)

2021-22 2022-23 2021-22 2022-23 2021-22 2022-23

ESCOMS
(KERC (KERC (KERC
(Actuals) (Actuals) (Actuals)
approved) approved) approved)

HESCOM 11761.98 12082.25 7.46 8.31 8.00 8.31

GESCOM 7827.30 7921.91 7.51 8.11 7.74 8.11

CESC 6684.20 6911.06 7.29 8.11 7.61 8.11

Hukkeri 291.27 266.50 6.32 6.51 6.26 6.51

Total 58418.00 61965.89 7.64 8.42 8.11 8.42

Source: ESCOMs.

The overall cost of supply is more than the realisation and there is revenue deficit which
regulators normally considers in the Annual Performance Review.

10.1.7 Subsidy in Power Sector

There are a total number of 29,19,139 Bhagya Jyothi/Kutira Jyothi(BJ / KJ) connections
and 33,25,328 irrigation pump sets upto 10 HP in the State as of November-2022. The
power supply to IP sets (Upto 10 HP) has been made free with effect from 01.08.2008.
Whereas the BJ/KJ beneficiaries have been enjoying free power since a very long time.
From 2017-18, the free power supply to BJ/KJ has been enhanced from 18 units to 40
units per installations per month. The entire cost of supply of free power to agricultural
sector (IP set upto 10 HP connected load) & BJ/KJ connections (consumption up to 40
units per month) has been made good by the State Government through subsidy. The
subsidy provided by the Government during the last Previous years and in 2022-23 (Up
to November – 2022) is provided in Table 10.8.
Table 10.8: Subsidy Released by the State Government

Subsidy released
Year Remarks
(Rs. in Crs)
2019-20 11,245.00
2020-21 11,250.00
Includes previous subsidy arrears of
2021-22 16,944.93 Rs.5,500.00 Crs&Covid relief subsidy of
Rs.68.93 Crs.

Includes FAC subsidy Rs.100.02 Crs& Covid

2022-23 (Upto Nov-22) 11,547.41
relief Subsidy of Rs.92.59 Crs.
Source: Energy Dept.

Demand Side Management (DSM)

Energy Efficiency and Energy Conservation endeavour is critical for meeting India’s
Nationally Determined Contribution in the emission intensity of its GDP by 33%-35%

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by 2030 from 2005 level. The Government of Karnataka has implemented several
programmes to conserve energy as part of its DSM initiatives. Some of the important
programmes are:

oo Time of Day Tariff Metering is mandatory for industrial consumers and especially for
HT consumers having sanction load of 500 KVA and above.
oo Installing Energy efficient street lighting systems and Electronic Time Switches for
street light installations for switching “ON” and “OFF”.
oo Segregating agricultural loads from the existing 11kV feeders through Niranthara
Jyothi and DEENA DAYAL UPADHYAYA GRAM JYOTHI YOJANA schemes to provide
24X7 uninterrupted power supply to non-agricultural loads in rural areas.
oo Adoption of High Voltage Distribution System (HVDS) for agricultural loads in rural
areas.
oo Encouraging domestic consumers to use solar water heaters.
oo Mandatory use of solar water heating systems for all residential buildings with a
built up area of 600Sq. Feet and above falling within the limits of Municipalities/
Corporations and Bangaluru Development Authority, etc.
oo Mandatory use of LED in Government buildings/Aided institutions/ Boards /
Corporations.
oo Mandatory uses of star rated energy efficient irrigation pump sets conforming to
standards prescribed by the Bureau of Energy Efficiency.
oo Promotion of energy efficient building designs.
oo Adoption of Bachat Lamp Yojana launched by Bureau of Energy Efficiency (BEE),
Government of India.
oo Implementation of Solar Rooftop programme.
oo Vidhyuth Jagruthi Yojana, an awareness programme on DSM activities for students.
oo Surya Raitha Scheme, a pilot project for arranging power supply to IP sets through
solar under net-metering concept for IP sets.
oo Distribution of LED bulbs, LED Tube lights and Energy Efficient pump sets under
Hosabelaku through EESL as part of UJALA Scheme.
Investment in Power Sector: (Planned by KPCL, KPTCL & ESCOMs during 2021-22)

The Plan Outlay and expenditure incurred during the last Five years and during 2022-23
(upto November – 2022) are given at Table 10.9 and investment in power development
since 2016-17.

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Table: 10.9 : Investment in Power Sector (Rs. in Crore)

IEBR Capital Outlay /

Expenditure for Power Total Outlay
KPCL KPTCL & ESCOMs Projects(IR & EQUITY)
Year
Plan Plan
Expr. Expr. Plan Outlay Expr. Plan Outlay Expr.
Outlay Outlay
2017-18 1822.00 968.14 2000.00 2005.14 3555.25 3555.25 7377.25 6528.53
2018-19 1404.00 1001.66 2000.00 3711.64 3129.00 3129.00 6533.00 7842.30
2019-20 1916.00 288.06 3208.00 2406.04 2181.31 2181.31 7305.31 4875.41
2020-21 2345.82 297.68 2000.00 1342.67 1640.35 1640.35 5986.17 4083.32
2021-22 1859.28 362.59 2000.00 4226.29 3426.97 3426.97 8448.16 8015.85
2022-23 1954.00 225.94 3521.83 2263.08 2920.26 2920.26 8396.09 5409.28
(Upto
Nov-22)

Source: Details of Provision for Plan Schemes, Finance Department, GoK.

10.1.8 Rural Electrification

Towards meeting the targets stipulated by the National Electricity Policy (NEP), the
State Government has planned initiatives for energisation of Villages, Hamlets, Harijan
Bastis and Thandas. All the villages of Karnataka have been electrified. The ESCOMs
have planned to energise hamlets and thandas in a phased manner. The details of
electrification status in hamlets, Harijan bastis, thandas and IP sets during the last 6 years
and in the current financial year are provided in Table 10.10 and cumulative progress of
Energisation since 2016-2020 is also given.

Table 10.10: Progress in Rural Electrification

Number if Hamlets, harijan Bastis &Thandas Energised during 2020-21 & 2021-22 are 11
and 9 respectively, Hamlets harijan bastis & thandas Energised upto November-22 is 02
under SCSP and TSP Capital works.

Irrigation Pump sets Existing Hamlets/HarijanBastis

Year
(in lakhs) Thandas Electrified (No.s)
2016-17 25.06 3041
2017-18 26.30 4485
2018-19 29.68 19
2019-20 30.28 39
2020-21 31.65 11
2021-22 32.57 09
2022-23 33.25 02
(Upto Nov-2022)

Source: Energy Department

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10.1.9 Karnataka Renewable Energy Development Limited (KREDL).

KREDL is the nodal agency for the development of renewable energy sources in
Karnataka. To harness green and clean renewable energy sources in the State for
environmental benefits and energy security and to initiate energy conservation &
efficiency measures in all the sectors for sustainable development, the Government of
Karnataka notified a policy on renewable energy (for the period 2009-14) on 19.01.2010
and Solar Policy 2014-21 on 22.05.2014 and Karnataka Renewable Energy Policy 2022-27
on 06.05.2022.

Karnataka Renewable Energy Policy 2022-27

State notified Karnataka Renewable Energy Policy 2022-27 to facilitate Government of

India in meeting the RE target of 500 GW by 2030. KREDL is the nodal agency which
envisages private sector investment for renewable energy development in the State. The
capacity addition in private sector under renewable energy during 2021-22 was 383.09
MW and it is 361.84 MW during 2022-23 (upto Nov – 22)(as shown in Table 10.11).

Table 10.11: Capacity additions under Renewable Energy (in MW)

Capacity addition during

Sources
2022-23
2020-21 2021-22
(Upto Nov-2022)
Wind Power 148 181.80 74.25
Solar 88.83 201.28 287.59
Total 236.83 383.08 361.84

Source: KREDL

The cumulative progress in installed capacity additions in the renewable energy sector
in the State as on 30.11.2022 is shown in Table 10.12. Solar energy (including Solar Roof
Top) accounts for major share in the installed capacity.

Table 10.12: Cumulative Progress in Renewable Energy (in MW) as on 30.11.2022

Sources Potential Available Allotted Capacity Installed Capacity

Wind Power 124139 24974.87 5223.39
Small/Mini Hydro 3100 3010.25 903.46
Co-Generation 2000 2212.65 1731.16
Solar (including solar roof top) 24700 14445.83 7877.89
Wind - 29.70 0.00
Hybrid
Solar - 20.30 0.00
Biomass 1000 395.13 139.03
Waste to Energy 135 51 0
Total 155074 45139.73 15874.93

Source: KREDL & Energy Department

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10.1.10 New Initiatives

Initiative taken up in 2022-23.

oo Providing solar water pumps to beneficiaries under SCSP and TSP schemes through
KREDL.
oo Upgradation of Distribution Automation System in other Corporation areas.
oo The HVDS implemented on pilot basis will be continued in other subdivision of
ESCOMs after detailed study of the scheme.
oo Smart Grid and Smart Meters scheme will be implemented on pilot basis.
oo Implementation of Green Energy Corridor scheme with the assistance of KPTCL and
MNRE.
oo Augmenting Transmission Capacity to future growth and evacuation.
oo As per Budget Announcement KPCL is implementing 11.5 MW capacity Waste to
Energy project at Bidadi, Ramanagara District in co-ordination with BBMP.
oo As per budget announcement BESCOM is in the process of implementing 1190 No’s
Charging Stations under PPP mode, throughout the State.
Ujwal Discom Assurance Yojana (UDAY) Scheme: Ujwal Discom Assurance Yojana
(UDAY), a Scheme for Financial Turnaround of Power Distribution Companies (DISCOMs),
has been approved by the Government of India with an objective to improve the operation
and financial efficiency of the State DISCOMs. The Karnataka State stands 1st place in the
ranking as per the UDAY Dashboard. BESCOM stands in the 1st place, HESCOM stands in
2nd place, GESCOM stands in 3rd place, MESCOM stands in the 4th place & CESC stands
in the 5th place in the ranking as per the performance parameter on UDAY Dashboard.

Centrally Sponsored Scheme:

1. Deendayal Upadhyaya Gram Jyothi Yojana (DDUGJY)
ESCOMs wise sanction details are as follows (Table: 10.13).
Table 10.13: Projects under DDUGJY (Rs. in Crs)

SL. Cost approved by

Item
No. Monitoring Committee

1 Electrification of un-electrified villages 23.17

2 System Strengthening and Access to Rural Households 492.81
3 Metering 444.96
4 SAGY 55.09
5 Feeder Separation 729.76
Grand Total 1745.79
PMA Charges @ 0.5% 8.73
Total Project Cost 1754.52

Source: Energy Department

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The works under DDUGJY was completed on December-2020.

2. Integrated Power Development Scheme (IPDS)

Phase-1:

Table 10.14: Sanction Details for Projects under IPDS (Rs. In Crs)

Sl. No. Name of the Company No. of towns DPR Cost

1 BESCOM 45 459.45
2 CESC 33 179.06
3 GESCOM 42 184.33
4 MESCOM 30 168.44
5 HESCOM 73 206..37
Total 223 1197.65

The Works under IPDS phase-1 was completed on Dec-2019.

Phase 2:

Table 10.15: Sanction Details under IPDS Phase 2 (Rs. in Crs)

Sl No Name of the Company No of Towns Total Project cost

DC-DRC (all ESCOMs) 26.67
1 BESCOM 20 7.42
2 CESC 21 6.84
3 GESCOM 18 4.78
4 MESCOM 44 10.27
5 HESCOM 21 6.30
TOTAL 124 62.28

Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya)

Table 10.16: ESCOM wise sanction details (Rs. Crores)

Sl Total Project Cost

Name of the Company RHH Addl infra
No (RHH+ Addl infra)
1 CESC 1.86 14.75 16.61
2 MESCOM 3.51 12.17 15.68
3 HESCOM 40.55 53.14 93.69
4 GESCOM 27.65 46.07 73.72
5 HRECSL 5.09 4.5 9.59
Total 78.66 130.63 209.29

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Table 10.17: Progress of Energisation of IP Sets in Karnataka (Lakhs)

End of Year Pump sets energised (cumulative)

2016-17 25.06
2017-18 26.30
2018-19 29.68
2019-20 30.28
2020-21 31.55
2021-22 32.57
2022-23 (Upto Nov-22) 33.25

Source: ESCOMs accounts for 2021-22.

State Government Programme :

BELAKU: At present 2,39,570 number of un-electrified households have been identified

and the estimated cost of electrification is about Rs. 260.34 crore. A total of 2,23,726
households have been electrified as on Nov-2022.

Table 10.18: Details of Electrified households under BELAKU

Name of the No of Unelectrified Estimated Cost in No of Households

Sl No
Company HouseHolds Crs. Electrified
1 BESCOM 61897 37.557 61673
2 CESC 19528 16.99 19253
3 MESCOM 28362 68.94 24494
4 HESCOM 75188 67.67 70448
5 GESCOM 49260 65.67 47539
6 HRECSL 5335 3.51 319
Total 239570 260.34 223726

Source: Energy Department

ISSUES/CHALLENGES

Subsidy burden: The Number of IP sets (Up to 10 HP) & BJ/KJ installations are increasing
over the years resulting in increased consumption. The monthly consumption limit
per installation of BJ/KJ has been increased from 18 to 40 units per installations and
overall increase in consumption of IP (Up to 10 HP)& BJ/KJ, the subsidy burden has been
increasing. Due to inflationary tendency the cost of supply is increasing over the years.
The tariff is getting increased due to increase in input cost of Generation, Transmission
and Distribution. Consequently subsidy burden is also increasing.

Cost of Supply: Due to increased demand for power in the state, the thermal share is
increased adding to the cost of supply. The operational cost is also getting increased. The

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revenue realisation from sales is not matching with the overall cost of supply and there
is gap or deficit in revenue every year. In order to bridge this revenue deficit temporarily
ESCOMs are resorting to short term borrowings. The State regulators are considering the
revenue deficit of the previous years during the Annual Performance Review and trying
to bridge the revenue deficit as far as possible. The approved average cost of supply
for 2020-21 is Rs.7.23 per unit. The provisional actual average cost of supply of 2021-22 is
Rs.7.64 per unit.

Short term power purchase: Due to increased capacity addition to the generation
within the State by KPCL as well as through renewable sources, need based import is
considered in the recent past & the same trend is expected during the current financial
year.

Other challenges

oo Restructuring of management within KPCL to provide greater autonomy to major

generating stations.
oo Monitor production from captive mines supplying coal to State-owned plants and
enforce penalties for non-performance.
oo Plan for more gas-based power stations to make use of the gas pipeline availability.
oo Address the weak financial situation of KPCL by settling unpaid arrears.
oo Utilize captive and IPP capacity in the State by offering reasonable tariffs.
oo Pursue power projects in Cauvery basin in discussion with Government of Tamilnadu
oo Pursue discussions with State of Goa to make progress with Mahadayi hydro project.
oo Mandate ESCOMs to adhere to minimum levels of evacuation.
oo Stricter enforcement of solar RPO
oo Site future PV plants in areas with alternate water supply
oo Conduct regular knowledge sharing and technical training sessions for engineers/
technical staff in State.
oo Policy to incentivize re-powering of existing wind sites.
oo Investment-grade zoning of waste lands to enable higher wind capacity addition
oo High energy intensity on a limited number of sites makes industrial energy efficiency
a high priority.
oo Consider the optimum organization and institutional framework for industrial energy
efficiency within government.
oo Understand specific barriers to improved energy efficiency in specific sectors.
oo Establish appropriate top-down and bottom-up indicators of success.
oo Develop policies that combine information and capacity building, institutional,
regulatory and legal drivers, and fiscal and financial drivers.

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10.1.11 Outcome / Achievements

oo Niranthara Jyothi Yojane is a major project that aims to segregate the rural area loads
into agricultural and non-agricultural loads so as to provide 24 hours of quality power
supply to rural areas and assured hours of power supply to the irrigation pump sets
oo As on July 2019, all the proposed NJY works are completed. 2288 Niranthara Jyothi
feeder works (59 feeders in Pilot, 884 feeders in phase1 and 839 feeders in phase 2
and 506 feeders in Phase 3) are completed and have been commissioned and As on
November - 2020, 1723 Niranthara Jyothi feeder works (884 feeders in phase1 and 839
feeders in phase 2) are completed and have been commissioned.
oo The State Government has brought out its Solar Policy for 2014-2021 for giving impet
us to exploitation of solar energy. The State Govt is able to harness renewable energy
sources and save natural resources like coal.
oo Some of the energy conservation programs like demand side management (DSM)
and smart grid pilot project have resulted in saving energy.
oo The solar park spread across 12,718 acres has an installed capacity of 2,050 MW and
has produced at an average of 377.43 million units of power per month in the year
2020-21.
oo Specific challenges and the future outlook of the department.
oo Optimum utilisation of natural resources under renewable energy sector.
oo Generation capacity addition to meet the growing demand for achieving self-
sufficiency.
oo Reduction of Transmission & Distribution Loss.
oo Reduction of Aggregate Technical & Commercial Loss.
oo Making Power Supply Consumer friendly.
oo Reduction of Electrical Accidents.
10.1.12 Subsidy given to Ganga Kalyana Yojana

The scheme is a fully subsidized scheme, bore wells, pumps and electrification are
provided to minorities and small farmers living in rural areas. For individual Bore well
project, the government has allocated Rs.3.75 lakhs for 1. Bangalore Rural 2. Kolar 3.
Chikkaballapur 4. Ramanagara 5. Tumkur districts and Rs.2.25 lakhs for other districts.

The Government introduces a variety of projects to supply irrigation services. These

schemes allow the drilling of open wells and borewells to provide irrigation infrastructure.
The Karnataka Ganga Kalyana Scheme was also newly introduced by the Karnataka
Government. The Government will dig open wells with pumps or bore wells through this
programme.

Normal IP sets – Solar IP sets

Centrally-sponsored PM KUSUM-B (Pradhan Mantri Kisan Urja Suraksha Evam Utthaan

Mahabhiyan-B) scheme under which solar-powered irrigation pump sets will be provided

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to farmers.10,000 farmers of the State will get the benefit of this scheme which will free
them from depending on the grid-connected power for agricultural operations. The total
cost of the project would be around Rs. 30,723 crore, the State would provide Rs. 10,697
crore while the remaining cost would be borne by the Centre. The beneficiaries under
the scheme would be chosen through online mode by the Karnataka Renewable Energy
Development Corporation Ltd. (KPCL).

Tenders are invited in the month of MAY 2022 for the pending 44,134 Nos. IP set
applications as at the end of March-2022 for creating infrastructure on seniority basis for
those who have paid Rs.10,000/- and other required deposits. The estimated cost of the
work is Rs.886.27 Crores.

10.1.13 WAY FORWARD

The strategies are framed in various policies- Karnataka State Renewable Energy Policy,
State Solar Policy State Bio-fuel policy for Affordable and Clean Energy for all.

oo Karnataka Power Transmission Corporation Limited (KPTCL) is identified as the nodal

agency to plan and monitor the SDG 7. There is need to prepare periodic plans for all
ESCOMs to reinforce their distribution infrastructure in a coordinated manner as grid
modernization and up-rating of the distribution network for the absorption of power
will involve significant capital infusion.
oo There is need to rectify the balance sheet of state power utilities by rate-design
reforms, plugging revenue leakage, squaring cumulative losses, and issuance of
bonds. Additionally, quality-rated distribution transformers are required to reduce
the length to ensure optimum efficiency.
oo There is need to promote Utility business model to transform from ‘generation sales’ to
‘mediator for sales’ for sustenance in the long-term. This would keep the consumers
connected to the distribution networks to transact their surplus energy.
oo Timely formulation and implementation of action plans.
oo Re-assessment of cross-subsidies by cost-effective tariffs and regulatory innovations
as electricity to evolve from a public utility model to a product/commodity model.
oo Need for application of IT solutions such as SCADA to augment collection and collation
of data and reduce manual interventions to ensure maximum un interrupted power
supply
oo Change management programmes of local power distribution as well as reactivation
of the franchisee system to be promoted by involving local youths under Skill India
Mission
oo Need to provide cooking gas/fuel at a reasonable cost to the sections not covered
under the UJJWALA scheme in close coordination with oil companies through
incentives like tax concessions, as appropriate under state scheme.
oo There is need to regulate farm power by limiting the number of wells per unit area
and checking misuse of subsidy. Also, going forward there is need for increasing
testing labs for solar panels as well as innovation labs such as YES SCALE (aggrotech,
cleantech and smart cities) as alternate source of energy.

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oo The companies to promote initiatives like internet-of-things, block chain, machine

learning, mobile intelligence, mini-grids and micro grids in future.
oo To ensure sustainable uptake of these technological innovations, there is a need for
coherence between institutions and technological processes to ensure satisfactory
functioning of electricity infrastructure.
oo Network strengthening and using efficient irrigation pumpsets

10.2 ROADS, TRANSPORT, INFRASTRUCTURE AND COMMUNICATIONS

10.2.1 Roads

The State’s Road network consists of National Highways (NH), State Highways (SH), Major
District Roads(MDR), Municipal roads and other roads including village connectivity
roads. The road development works in the State are carried out by multiple departments/
agencies, which include Public Works Department (PWD) of the State Government,
local Governments such as Zilla Panchayat and its wings & in urban areas, the City
Corporations, City Municipal Corporations (CMC) etc. the roads are maintained by the
respective agencies. The details of road length in the state are given in the Table 10.19.

In the State, the average length of the PWD roads (viz; NH, SH & MDR) per 100 sqkm area
is 47.73 km. Among the districts, Shivamogga(46.89), Ballari(43.01) Chickballapura (40.41)
Bidar (41.19), Yadgiri (41.08), Chickmagalur (42.91), Uttara Kannada (45.86), Kodagu (43.55),
Raichur (36.68), Chitradurga (39.31), Vijayapura (38.19), Kalburgi (35.06), Chamarajanagara
(31.71) are below the State average.

The average length of the roads (viz; NH, SH, MDR and rural roads) per 100 sqkm of
geographical area of the state is 150 kms. The road lengths in the districts namely,
Chamarajanagara(106), Koppala(109), Ballari(109), Yadgir (112), Vijayanagar (116), Vijayapura
(117), Raichur (122), Gadag (123), Bidar (127), Ramanagara (130), Haveri (135), Kalburgi (136),
Bagalkot (137), Belagavi(142), Bengaluru(u)(143), Kodagu(146), Chikkaballapura(146) are
less than the State average for which special emphasis is to be provided to bring them
on par with the state average.

An amount of Rs 10065.92 crores is allocated to the Public works department for 2022-23
of which an amount of Rs. 6717.96 crores is released upto 20th Jan 2023. The expenditure
incurred is Rs. 6379.56 crores. Out of the total allocation, the productive allocation is Rs
9469.22 crores of which the expenditure incurred is Rs. 5982.14 crores. Details of Scheme
wise progress of Public works Department as on January2023 (avalokana) given in
Appendix 10.1.

Table 10.19: The Road lengths in Karnataka (in Kms)

Year
Category of Road
2021-22 2022-23
National Highways 7652 7652*
State Highways 28985 27880*
Major District Roads 55474 56115*

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Year
Category of Road
2021-22 2022-23
Municipal Roads 43964.01 43964.01**
Rural Roads 194438.02 197282.83***
All Roads 330513.03 332893.84

Source:* Information Provided from EIC, PRAMC office(as on March 2022),

**Director, Directorate of Municipal Administration,(as on March-2021)
*** RD &PR Department(as on 2019-20).

Road Network: As per the State wise road network, the Karnataka State is having a total
road length of 3,58,300 km. (all roads) which is 5th highest road network among the
States and UT of India besides the State of Maharashtra, Uttar Pradesh, Assam & Madhya
Pradesh.

Under SHDP-IV, approval has been accorded for implementation of 7800 km road
development in 3 stages at an estimated amount of Rs. 10,000 crore.

Package Bridges : Construction of 247 bridges at an estimated amount of Rs. 1812

crore has been taken up in 16 packages on Turnkey basis across the State of Karnataka.
Bridge proper in respect of 159 bridges completed and balance are under various stages
of construction. The Cumulative Financial progress achieved till December-22 is Rs.1311
crore.

Roads in and around Bengaluru are being taken up at an amount of Rs.2095 crore. It is
planned to develop 155 km of road including construction of ROB/RUB, Grade separators.
This is under implementation in 10 packages and 78 km length of improvement has
been completed to end of December-22.

Karnataka State Highways Improvement Project-III (KSHIP-III): KSHIP-III has taken up

with ADB loan assistance of US $346 million to develop the Core Road Network. All the 3
packages are under progress. As on Dec-22, 70 km in package-I, 114 km in package-II and
73 km in package-III have been completed.

Plan Outlay & Expenditure, PWD: From 2012-13 to 2020-21, an amount of Rs.74,740 crore
has been spent for road development as against the total budget allocation Rs.78266
crore (includes IEBR, Capital and Revenue).

NABARD: RIDF-27 (2021-22) : During 2021-22, NABARD has communicated approval to

take up 23 major and minor bridges amounting to Rs.14349 Lakh with a loan assistance
of Rs.11479 Lakhs Administrative approval has been accorded and the works are under
progress.

Rural Roads

The total length of rural roads as on 2019-20 in Karnataka is 197282.83 kms (Bituminous
Surface 61777.81 Kms, Metal Surface 21925.02 Kms and Earthen / Gravel Surface 113580
Kms).

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Rural Communications
Improvement of Rural roads and their maintenance is being taken up under Pradhan
Manthri Gram Sadak Yojana (PMGSY), Namma Grama Namma Raste Yojane (NGNRY),
Mukhya Manthri Grameena Rasthe Abhivruddhi Yojane (CMGSY) & RIDF schemes. An
amount of Rs 443.96 crores is allocated to the Rural roads schemes for 2022-23 of which
an amount of Rs. 219.86 crores is released upto 20th Jan 2023. The expenditure incurred
is Rs. 266.50 crores. The entire allocation pertains to productive allocation. Details of
scheme wise progress is given in Table 10.20.

Table 10.20: Scheme wise progress of Rural Roads, RDPR department as on January 2023
(AVALOKANA) (Rs in crores)

Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Pradhan Mantri Grama Sadak Yojane-Road
81.52 61.14 52.86
Maintenance
Namma Grama Namma Raste Scheme (NGNRY)
120.00 90.00 94.57
and other Rural Road Schemes
Special Grants to Rural Roads (Mukhya Mantri
242.44 68.72 119.07
Gramina Raste Abhivruddi Yojane)
Total 443.96 219.86 266.50

ISSUES & CHALLENGES AND OUTCOME

(a) Issues & Challenges

oo The road network in the State shows disparity in inter–district connectivity of National
Highways and State Highways. This disparity in connectivity needs to be set right
based on Dr.Nanjudappa Report on redressal for Regional Imbalance. Accordingly,
GO has been issued for upgradation of 9601 km State Highways and 15510 km Major
District Roads during 2020-21.
oo Rural Roads - Rural connectivity is a key component in the overall development of the
state. Rapid development of roads can have a multiplier effect on the overall growth
of backward regions. Investment in roads has one of the largest impacts on poverty
alleviation and increase in total factor productivity.
oo About 23% of State Highways and 79% of Major District Roads carriageway width
are single Lane. To ease the traffic congestion most of the State Highways and some
of the Major District Roads needs to be upgraded to two lane width based on the
vehicle density (Passenger Car Unit). (Widening of SHs are being taken up through
KRDCL and KSHIP on Core Road Network concept)
oo The vehicular population in the State has risen to about 23 lakh from March-2021 to
December-2022. As on December-22, there are 295 lakh registered vehicles are in the
State. To accommodate growing population of vehicles, roads have to be widened on
National Highways and State Highways. At present, only 29% of National Highways
and 2.4% of State Highways are having 4 lane carriageway widths.
oo The Government of India has take up improvement of National highways in the State
through National Highway Authority of India. NHAI is implementing development

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of National Highways into 4 lane/ 6 lane. At present development of 1885 km NH is

under progress at an amount of Rs.32,793 crore.
The Planning and Road Asset Management Centre (PRAMC): This Centre (PRAMC) is
established to strengthen the planning, programming and other mandated functions of
the Department.

Core Road Network (CRN) : As per Government length of 35853 km (7589 km of National
Highways, 18661 km of State Highways and 9603 km of Major District Roads) has been
identified for development to implement CRN in the State.

Rectification of Black Spots: “Karnataka Road Safety Policy-2015”. The Road safety policy
aims at the reduction of road accidents by 25% and fatalities by 30% by the year 2020.
Till now 449 Black Spots have been rectified in the State. Black spots on highways need
better monitoring most of accidents happened on National and State highways and
Speeding is a major cause accounting for these accidents.

oo Enforcing key road safety rules and proper planning of road networks & pedestrian
tracks, Vehicular traction system.
oo IEC activities for creating awareness on road safety
oo Driving tracks & providing visible, crash, protective, smart vehicles.
oo Setting & enforcing mandatory crash helmet use & Delivering post-crash care
oo Encouraging research on road safety measures.
Collaborating with Public works and traffic control department: To bring in required
modifications for ensuring a smooth flow of traffic and Promoting awareness of traffic
rules Among the youth in schools and colleges.

Upgradation of Roads: In order to strengthen the road network of the State, 226 Major
District Roads of length 9601 km have been upgraded as State Highways. In the same
way 1329 village roads of length 15510.68 km have been upgraded as Major District Roads.
While upgrading the said roads Dr.D.M.Nanjunadappa’s Committee report and length of
PWD roads per 100 sq. km. area of districts have been kept in view.

10.2.2 TRANSPORT

Transport Department Consists of Transport Commissionarate and four Corporation.

An amount of Rs 3568.56 crores is allocated to the Transport department for 2022-23 of
which an amount of Rs. 2387.08 crores is released upto 20th Jan 2023. The expenditure
incurred is Rs. 1319.20 crores. Out of the total allocation, the productive allocation
is Rs 3435.58 crores of which the expenditure incurred is Rs. 1218.66 crores. Details of
Scheme wise progress of Transport Department as on January2023 (avalokana) given in
Appendix 10.2.

I. Karnataka State Road Transport Corporation

KSRTC with its Corporate office at Bangalore, has in its jurisdiction seventeen southern
districts of Karnataka and provides bus service to 19076 villages out of 21670 villages, the
percentage service provided being 88%. The percentage fleet utilization stood at 63.7%

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.As on 30.11.2022, 7338 schedules were operated utilizing 8128 vehicles, for the cumulative
period the operation was average. of 26.20 lakh kms/day earning gross revenue of
Rs.1178.09 lakh and carrying 24.72 lakh commuters on an average daily with workforce of
35027 employees.

Thus KSRTC operated 6392.73 lakh effective kms. during the year 2022-23 (upto
November-2022) as against 3626.32 lakh effective kms operated during the same period
of previous year. The percentage fleet utilization has increased to 88.8 during the current
year as against 53.6 in previous year. During the current year period KSRTC has not
inducted any new bus and replaced 70 old vehicles which were not fit for operation. The
percentage of vehicles scrapped to the total vehicles was 0.9. KSRTC has been fulfilling it’s
social obligation by providing free/ concession passes to several sections of the society,
namely, students, physically challenged, blind, freedom fighters, endosulfan victims,
Arjuna awardees etc.

Financial Performance: During the year 2021-22, the Corporation incurred a loss of
Rs.423.31 crore as against a loss of Rs.581.15 crore incurred during 2020-21. KSRTC has
to pay 5.55% of traffic revenue as motor vehicle tax. The Government has given motor
vehicle tax exemption for 2021-22. The detailed financial performance statistics of KSRTC,
BMTC, NWKRTC and KKRTC is given in Appendix 10.3.

Smoke Emission Checks: During 2021-22, totally 82,415 vehicles were checked for smoke
emission levels during the year under report and out of which 591 (0.72%) buses were
found to be slightly above the prescribed norms. These buses were attended to and put
back to operation.

Safety Measures: Collision Avoidance System (CAS) is being introduced in few premier
service buses to avoid the accidents and Installation of FDSS (Fire detection and
suppression system) in few premier service buses to control fire incidents.

Implementation of Accident Insurance scheme of Rs.1 crore to all Employees: For the
first time in the history of STUs of the country, an accident insurance scheme of Rs.1crore
has been implemented for KSRTC employees. Employees of the Corporation who die in
an accident or suffer permanent/temporary disability will get Rs.50 lakh, a non-premium
accident indemnity insurance and Rs.50 lakh with a with a minimum premium payment.

Achievement: KSRTC has been a key driver of economic growth and development of
the state in the services sector. The commendable service of KSRTC has been recognised
throughout the nation and outside too. And this has fetched KSRTC several national and
international awards apart from earning a place in the Limca Book of Records for being
the most award winning State Transport Corporation in the country.

ISSUES AND CHALLENGES FACED AND WAY FORWARD

oo Viability gap funding

oo Government funding for Transport Infrastructure and rolling stock.
Exemption to STU buses and other vehicles of STUs from payment of User fee at Tolls

oo Concession in Diesel rates to STUs and exemption in Taxes

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oo Strict action against All India Tourist Permit holders who operate as Stage Carriages
oo Measures to promote road Safety, traffic management and post-accident carethrough
setting up of the National Road Safety and Traffic Management Board (NRS&TMB)
oo Government to set up an Independent Road Transport Regulator at State level with
view of the liberalisation and deregulation across various sectors of Indian economy.
oo M.V.Tax at the rate of 5.55% on Traffic Revenue is paid to State Government presently.
The STUs may be exempted from payment of MV Tax.
oo STUs are going in for Electric buses under FAME-II (Faster Adoption and Manufacturing
of Electric Vehicles) Scheme of Government of India. At least, for half of the Contract
period, Viability Gap Funding (VGF) be provided by Government of India in order to
boost E-Mobility in Public Transport System.
oo A uniform solution to all the STUs be provided by ASRTU and financial support from
MoRTH, Government of India for retro fitment of old buses be extended to STUs.
oo Implementation of Intelligent transportation system (ITS) which is the application of
sensing, analysis, control and communications technologies to ground transportation
in order to improve safety, mobility and efficiency.
Best Practices adopted in KSRTC

oo Zero emission and clean fuel vehicles

▶▶ KSRTC will be operating 50 e-buses on GCC model on intercity routes within
Karnataka in 2022-23. The first e-bus “EV POWER PLUS” has already started
operation on trial basis on Bangalore-Mysore route.
▶▶ Prakruthi- Green Squad for a Clean Environment: KSRTC has introduced mobile
smoke emission and noise level checking service called “PRAKRUTHI”, to regulate
the smoke checking conducted at depots and division level to maintain healthy
fleet and clean environment.
oo Cargo/Parcel Transport Business
▶▶ Namma Cargo- Parcel Services System: In order to maximize the revenue of the
corporation “Parcel and Lite parcel” sources transported from one place to another
in our buses. The Business facilitator is selected through tender and the counters
are located at 90 bus stations. This service is called Namma Cargo.
II. Bengaluru Metropolitan Transport Corporation

The Corporation has operated 5576 Schedules by utilizing 6899 vehicles, it has operated
average schedules of 5409.2 and covers daily 10.24 lakhs kms. and earns average revenue
of Rs.426 lakh Traffic revenue by carrying 28.56 lakh passengers daily. The workforce of
the Corporation is 29,603. During the period it has inducted 215 Electric vehicles (private)
which are operating on GCC model and scrapped 246 old vehicles. The percentage fleet
utilization stood at 60.4%.

Financial Performance: During the year 2022-23 (April 22 to Novmeber 22) the Corporation
has operated 24.04 crore effective kms, earned gross revenue of Rs.1429.08 crores

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(including Rs.251.23 crores financial assistance released by Government of Karnataka

under various Head of Accounts) and incurred an expenditure of Rs.1734.20 crore and
sustained a loss of Rs.305.12 crore.

Achievements & Programmes of 2022-23

oo For convenience of public commuters, BMTC has started operating 9 meter length
90 Non A/C Electric Metro Feeder buses on 27.12.2021.
oo During the year 2022-23, under FAME-II Scheme of Central Government Department
of Heavy Industries Rs.165.00 Crores and Rs.100.00 Crores from the State Government,
totalling to Rs.265.00 Crores subsidy, 12 meter long 300 non-air-conditioned electric
buses on GCC model are being operated by M/s. Switch.
oo The Corporation has inducted 565 Non AC BS-VI Leyland buses under Debt Servicing
Scheme of Government of Karnataka.
oo New bus Depot at Devanahalli was inaugurated on 18-03-2022
oo New electric bus depot at Bidadi has started functioning on trial basis from 12-12-
2022.
oo The Corporation has given orders for procurement of 921 Tata Electric Non AC vehicles
of 12 meter length on GCC Model with the financial assistance of Rs.359.92 crore from
Central Government.
oo During the year 2022-23, the government has approved the procurement of 840 BS-
VI vehicles at a cost of Rs 336.00 crore.
oo BMTC has entered into MoU with Sri Jayadeva Institute of Cardiology for thorough
medical checkup and 10 types of Cardiac tests for 10750 Drivers, Conductors,
Mechanical and Administrative staff of above 45 years of age at an estimated cost of
Rs.1.30 crores. 1600 staff have undergone medical checkup and medical checkup is
under progress for remaining staff.
oo The Corporation has planned to introduce Accidental Insurance Scheme for
employees by entering into MoU with Canara Bank (Canara Bank Pay Roll Package).
In this scheme, employee has to open a zero balance account and can utilize benefits
provided by the Bank and if the employee expires due to accident, immediately his
family will be entitled for Insurance Relief of Rs.30 lakhs. In the nation, this facility is
first of its kind in the Road Transport Organizations’ history.
oo On account of Silver Jubilee celebrations of BMTC, accident-free drivers have been
awarded Chief Minister’s Gold and Silver Medals.
oo In the budget of 2022-23, Rs.50 crore has been allocated under capital expenditure,
and the said amount will be utilized for the works of providing basic facilities to
passengers at Anjanapur, M.S Palya, Mandur, Devanahalli, Jayanagar, Indiranagar
depots and construction of fire safety vehicle playing road at Koramangala TTMC,
and officers’ quarters at Jayanagar and electric bus depot at Attibele, construction of
vehicle inspection centre at Jadigenahalli (continued work) and Others. These works
are in progress.

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oo Under SDP, construction of vehicle fitness centre at Jadigenahally is under progress.

oo During the year 2022-23, under SCSP and TSP Scheme, it is planned to provide
dormitory for men & women candidates and take up track development at
Vaddarahally Training Centre. For this, Government has provided a grant of
Rs.5.20 crore.
oo It is planned to impart Vehicle driving training and also provide driving license from
Regional Transport Authority to 960 SC and ST candidates. 154 candidates have
been already given driving training. Currently, training to 77 candidates is under
progress.
oo During 2022-23, free/concessional passes are issued to 223090 general category,
60190 SC and 8633 ST students totalling to 283280 students.
oo During the year 2022-23(upto Nov), 272988 SahayaHastha passes have been issued to
building construction labourers.
oo From January-2022 under “VanitaSangathi” scheme, with co-operation of Labour
department, BMTC concessional bus passes are issued to women workers who are
working in large numbers in garment industries of Bengaluru. Totally 903 passes are
issued till date.
oo Government has allocated Rs.200 crore in 2022-23 budget under Financial Assistance/
Relief. Till date Rs.150 core has been released and the same is utilized for clearance of
outstanding liabilities.
oo Government has provided a grant of Rs.420for payment of Gratuity & PF amount to
retired/deceased employees and Diesel cost.
oo Under Nirbhaya Scheme, development of mobile app with women safety feature,
installation of CCTV in 5000 buses with arrangement of two cameras and one MNVR
per bus. Automatic Vehicle Location System (AVLS) with panic button for 5000 buses.
Bus Operations and Analytical Platform (BOAP). And 500 passenger information
display panels at bus stations. Work order has been given to implement these
programs together, at a cost of Rs.40.92 crore. Already CCTV cameras have been
installed in 5000 buses and Passenger Information Display & Development of Mobile
application is in final stages.
oo Corporation has imparted self-defence training to its all women staff and 2415 women
have already been trained. Corporation has distributed the training equipment such
as Tracksuits, T-Shirts, Sports shoes & sacks, pepper spray, etc. Currently training is
being given to 445 women staff.
oo BMTC is issuing Free/Concessional passes to students and other categories of public.
oo BMTC is enjoying the distinction of best performing mass transport system in India.
It also has received laurels and appreciations from the central and state governments
(BUS PRIORITY LANE” initiative implementation award, PCRA SAKSHAM-2022 State
Award, SKOCH-2022 Semi Finalist Order of Merit - BMTC Self Defence Training to
Women Employees etc.)

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CHALLENGES:

oo The Corporation has not revised the passenger fare from past six years. Due to this
the traffic revenue releazation of the Corporation is not at expected level.
oo Due to the spread of Covid-19 pandemic in the year 2020-21 and 2021-22, the
Corporation has still not recovered to its regular operations and hence corporation
sustained a drop in traffic revenue realization of Rs.884.57 crores in the year 2021-22,
when compared to 2019-20.
oo The average diesel price which was Rs.55.80 perliter during the year 2017-18, has been
increased to Rs 87.87 in the year 2022-23, due to this there is an approximate increase
of Rs.0.81 crore per day and approximate Rs.297.45 crores per year in fuel cost. This is
an additional financial burden to the Corporation.
oo The average passengers carried in BMTC buses during the year 2015-16 was 51.00 lakh
and the same is decreased to 33.10 lakh in 2019-20. Due to the spread of Covid-19
pandemic, the Passenger carried further decreased to 12.71 lakh per day in 2020-21.
Presently, the average passengers carried has been increased to 28.5 lakh. Hence, it is
still lesses than the normal operations which was in 2019-20.
oo There is considerable decline in passengers travelling in BMTC buses due to Ola/Uber/
Other taxi sevices and this has resulted in Revenue loss to BMTC.
oo Free/Concessional for General students and other passes has effected on revenue
realization of the Corporation.
Details of the programs organized in the year 2023-24

oo 510 new BS-6 Diesel buses are planned to be procured to facilitate smooth traffic in
Bengaluru as per the increasing population.
oo In the year 2023-24, Corporation has planned to issue free/concessional passes to
316026 general category, 73031 Scheduled Caste and 10943 Scheduled Tribe students
totalling to 400000 students.
oo Corporation has planned to impart Vehicle driving training and also provide driving
license from Regional Transport Authority to 1150 Scheduled Caste and Scheduled
Tribe candidates.
oo Under “VanitaSangathi” scheme, with co-operation of Labour department, BMTC
concessional bus passes will be issued to One Lakh women workers who are working
in large numbers in garment industries of Bengaluru.
oo In the year 2023-24, under capital expenditure Corporation has planned to provide
basic facilities to passengers such as (1) Constructing a transport complex at Silk
Board (2) Constructing staff quarters at Shantinagar (3) Providing basic amenities for
electric buses in the organization and (4) Providing basic amenities for passengers at
Kempegowda Bus Stand.
III. North Western Karnataka Road Transport Corporation

During the financial year 2022-23 (up to November) the Corporation earned profit of
Rs. 44.75 Crores on total Revenue as against Rs. 277.66 Crores during the corresponding

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period of the previous year. The profit earned is mainly due to Rs. 320 Crore special grant
received by the Government. During the year cost of operation increased to Rs.1639.41
croes from Rs. 1111.48 crores of previous year. Cost increase is mainly due to hike in diesel
price, spare parts, tyre costs. The percentage fleet utilization stood at 68.5. Corporation
has been fulfilling it’s social obligation by providing free/ concession passes to several
sections of the society, namely, students, physically challenged, blind, freedom fighters,
endosulfan victims, Arjuna awardees etc.

With the co-ordination of the State Bank of India, Accidental insurance Scheme
(Rs. 50 Lakhs) has been introduced for the welfare of the employees. Introduction of
Health Insurance to cover the medical expenses free of charge to employees and their
dependents is under process under the Suvarna Aarogya Suraksha Trust.

Commencement of other new programmes to improve progress

oo Efforts are being made to provide more transport facility with the available vehicles
and crew and in order to control the expenditure in the wake of the financial crisis of
the Corporation due to Covid-19, Conductor-less services have been implemented in
the Corporation. Currently 232 such services are being operated and these services
will be increased gradually.
oo With the aim to implement cashless ticketing in the Corporation, RFID cards have
been introduced in Belagavi city on a pilot basis. In addition, QR code based payment
has been introduced at 9 Pass Counters and 8 Reservation Counters in 3 Divisions.
After analysing its pros and cons, the facility will be extended to other depots and
divisions.
oo As announced by the Hon’ble Chief Minister in the budget, 54150 free bus passes
in first phase and 37448 passes in second phase for a period of three months were
issued to building and other construction workers.
oo Tenders have already been invited at 34 sites on rental basis for asset monetization of
vacant sites in the Corporation. Apart from this, tenders are invited on “As is where is”
basis for renting out the old building and premises of the Corporation.
oo “Namma Cargo” Parcel service was initially started from 27 centers for the convenience
of public and currently there are 45 centers.
IV. Kalyana Karnataka Road Transport Corporation (KKRTC)

Physical performance: During the year 2022-23(up to November-22), the Corporation

operated 4070 schedules utilizing 4366 vehicles, scrapped 109 old vehicles which were
not fit for operation. It is operating 13.56 lakh km, and earning daily (gross revenue) of Rs.
5.75 Crore. The percentage fleet utilization stood at 57.2.

Financial Performance: During the current year 2022-23 (upto November 2022), the
Corporation, incurred loss of Rs. -2.62 Crore on total revenue as against the previous year
period loss of Rs.-163.18 Crore. The loss of the Corporation is decreased by Rs. 160.56 crore,
as compared with the margin of the previous year period.

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New Initiatives

oo Internal group insurance scheme: In case of death of the employees prematurely, an

amount of the internal group insurance scheme currently offered to their dependents
of Rs.3.00 is increased to Rs 10.00 lakh.
oo SBI Insurance Plan: KKRTC has tied up with SBI and enforced an free accidental
insurance scheme of Rs. 50.00 lakhs for the employees of the Corporation. If any
employee of the Corporation died accidently or private, will be provided an amount
of Rs 50.00 lakh as accidental insurance benefit. If any employee, got permanently
total disability in accident, will be provided an amount of Rs.20.00 lakhs and for
permanent partial disability an amount of Rs. 10.00 lakhs will be provided.
oo Assets Monetisation: KKRTC planned to increase other revenue and for which
E-tender has been invited to install the Fuel Stations in 20 vacant plots under the
jurisdiction of the Corporation and HPCL has been selected through tender in 11
vacant plots.
oo NAMMA KARGO: KKRTC has established “NAMMA KARGO’’ parcel courier services in
view of increasing other revenue.
oo Training for general candidates under CMKKY: KKRTC imparted driving training to
270 candidates under the scheme of CMKKY.
oo Establishment of Training Centre for Heavy Vehicle Drivers at Kalaburagi:
Transport and Road Safety Department Karnataka Government has established
Heavy Vehicle Drivers Training Center (Society) at Kalaburagi with the purpose of
imparting refresher training to drivers and training to candidates who interested to
learn new driving skills.
oo Heavy Driving and Technical training institute in Telkur: It is Planned to establish
heavy driving and technical training institute in 15 acre with the approximate cost of
Rs.15.00 lakhs in Telkur of Sedum Taluk. Present work is in commencement stage.
V. Details of programmes and achievements of D.DevrajUrs Truck Terminals Limited.

oo D. Devaraj Urs Truck Terminals Ltd has constructed Truck Terminals in Bengaluru,
Mysore and Dharwad. These Truck Terminals are operational. The construction of
Truck Terminal in an area of 13.28 Acres at Dasanapura Village of Bangalore North
Taluk is completed. Construction of Truck Terminal Phase-1 at Amaravathi Village
Hospet Taluk Vijayanagar District in an area of 37.82 acres which was purchased from
KIADB is under progress.
oo It is proposed to Construct 56.13 acres Logistic Park Cum Truck Terminal at Anchatgeri
Village, Hubli Taluk, Dharwad District and 3.00 acres truck Terminal at Dandeli Village,
Uttara Kannada District via PPP mode under PM Gatishakti Scheme. Tender work is
under progress.
oo WAYSIDE AMENITIES: The Government of Karnataka has made provision in its annual
budget for the year 2022-23 to take up the work of construction of wayside amenities
beside National Highways to facilitate drivers and commuters on PPP Model.

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Proposed Projects: Further, Company is proposing to construct Truck Terminal/Logistic

Parks/Highway Amenities in Bengaluru, Davanagere, Vijayapura, Shivamogga, Mangalore,
Raichur, Hiriyuru, Chitradurga, Gadag, Bijapur, Hassan, Bidar, Belgavi and other Districts
of Karnataka. The Deputy Commissioners of concerned Districts have been requested
for allotment of suitable lands. The above Projects will be taken up depending on the
availability of Land and Grant from the Government.

VI. Transport Department- Commissioner Office:

Steps are being taken to establish and operate heavy vehicle driver training institutes at
Mangalore and Kalaburagi at a cost of Rs.3000 lakhs.

Automated (COMPUTERIZED) Driving Test Track: Driving Test Tracks are being set up at
Mangalore, Raichur and Belgaum at a cost of Rs.2605 Lakhs, civil work has been completed
and tender process is underway for installation of electronic sensors.In Devanahalli, Kolar,
Hospet, Gadag, Bellary, Vijayapura, Bidar, Yadagiri and Davangere,automated driving test
tracks are being set up at a cost of Rs.8000.00 lakhs from the Road Safety Fund.

Vehicle Inspection and Certification Centre: Vehicle Inspection and Certification Center
has been set up with the help of the Central Government at Goudahalli in DasanpurHobli
under Nelamangala Regional Transport Office and the said center is operational.Vehicle
inspection and certification centers have been set up at Mysuru and Dharwad at a cost
of Rs.3123 lakhs. Such centers are functioning.Vehicle Inspection and Certification Center
has been set up at Chokkanahalli, Bangalore with the assistance of Rs.268 Lakhs from
the Central Government, Rs.581 Lakhs from the State Government and a total cost of
Rs.849.00 Lakhs at the premises belonging to BMTC. At present the civil works at the
center are in the final stages of completion and installation of machinery is in progress.

Computerization and Smart Card of Transport Department: Services are being

provided to public through web based online Sarathi-4 software (Driving License) and
Vahan-4 software (Vehicle Registration Certificate) developed by Central Government
in all 67 Transport Commissioners and Senior / Regional / Assistant Regional Transport
Offices of the state.

About the use of CNG (Compressed Natural Gas) Powered Vehicles: Currently there are
approximately 49,303 CNG fuel powered vehicles in the state, more than 100 CNG pumps
have already been opened in the state through the City Gas Distribution (CGD) Network,
which will encourage more use of CNG based vehicles instead of these vehicles to reduce
petrol and diesel based vehicles. There are more than 100 CNG refuelling stations in the
state including Bengaluru city. 58 Retrofit Centres (RFCs) have been authorized to install
CNG Kits. Apart from vehicles converted to CNG fuel in the state, vehicles with Inbuilt
CNG Kits are being used at the manufacturing stage of the vehicle. Using CNG fuel can
reduce air pollution.

Retro Reflective Tape and Marking Plates (RETRO REFLECTIVE TAPE): Installation of
Retro Reflective Tape & rear marking plates for all transport vehicles was implemented in
the Regional Transport Offices from Date: 01-09-2022.

Registration of New Non-Transport Vehicles at Dealer’s Point: The process registration

of vehicles at the vehicle dealer’s point progress is underway. Accordingly, so far there are
7 two-wheeler companies and 8 four-wheeler companies have been approved.

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Vehicle Location Tracking System: The VLTS system will be implemented at a cost of
Rs.21.5 crore in partnership with the Central Government and the State Government. The
approval of the Cabinet has been received in this regard and the tender is under process.

Sustainable Development Programs (Departmental Development Programs)

oo Registered Vehicle Scrapping Policy
oo Karnataka Electric Bike Taxi Scheme 2021
oo During the year 2021-22, a continuous operation against vehicles causing air pollution
was carried out and 10,73,018 vehicles were inspected, cases were registered against
42,563 vehicles and an amount of Rs.5.39 crore was collected as fine.
oo During the year 2021-22, a continuous operation against vehicles causing noise
pollution was carried out and 10,23,268 vehicles were inspected, cases were registered
against 17,433 vehicles and an amount of Rs.4 crore was collected as fine.
oo In the state of Karnataka from April 2021 to March 2022, a total of 9,123 driving licenses
were received from the police department for suspension of driving licenses for
drunken driving and other crimes, out of which 1,416 were suspended for drunk driving
and 6,180 for other crimes, totaling 7,596 driving licenses. And in the remaining 1,587
cases, notices have been issued.
oo As on November 2022, Out of 29440940 total vehicles, 3042350 vehicles were
transport vehicles. Out of 26398590 non-transport vehicles, 20873537 vehicles were
two wheelers.(From April 2022 to November 2022, totally 1016488 new vehicles
have been registered). It may be observed that in our state highest addition of two
wheelers, followed by cars. The details of vehicle registered from last 12 years (2010-11
to 2021-22) in Bengaluru City and Karnataka state is given in Table 10.21.
Table 10.21: Details of vehicles registered from last 12 years 2010-11 to 2021-2022 in Bengaluru
city and Karnataka state.

Year Bangalore City Karnataka State Share of Bengaluru (%)

2010-11 4548048 12206782 37.26

2011-12 5033002 13528553 37.20
2012-13 5526860 14938915 37.00
2013-14 6022821 16378930 36.77
2014-15 6575589 17958850 36.61
2015-16 7161476 19588128 36.56
2016-17 7785949 21240804 36.66
2017-18 8364274 22841111 36.62
2018-19 9027416 24541987 36.78
2019-20 9638362 26117614 36.90
2020-21 10010588 27274117 36.70
2021-22 10409289 28424452 36.62
2022-23 (as on Nov) 10828302 29440940 36.78

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Recommendations made in the Evaluation studies conducted through Karnataka

Evaluation Authority about the Karnataka State Road Transport Corporations (KSRTC,
NWKRTC and KKRTC) from 2014-15 to 2019-20.

Enhancement of Operational Efficiency: Digitizing the depot level route maps and
integrate with corporation level, Incentivize people to increase their utilization of public
transport for private players, Corporation may be incentivised to reach the Fuel Efficiency,
Creating the separate division operates only luxury buses by merging all corporations,
Setting up of a common MIS data base, Adopt ITS system to provide real time updates to
passengers and Establish better inventory level management practice.

Enhancement of financial Efficiency: Enhancement of Revenue through increase

in fares, Work out the compensation from government on Diesel price increase and
Operation of unviable routes, Capital infusion by the government for sustainable
operations, Identification of assets that can be monetized, Government shall explore
Direct Benefit Transfers (DBT) to the passengers who are provided with concessions and
Ensure depreciation fund utilised only for replacement of operation asset and purchase
of new buses.

Enhancement of service delivery: Conduct regular demand assessment by providing

training to depot managers and traffic managers and Unutilised land may be converted
for commercial purposes.

10.2.3. Infrastructure

I. Railways Projects:

Major programs undertaken by the Railway Branch in the year 2022-23 are:-

New Railway line projects: To increase rail density in the state of Karnataka,
thereby improving the socio-economic development of different parts in the State,
9 new railway line projects are being taken up duly sharing the cost of the project on
50:50 basis between Government of Karnataka and Ministry of Railways. These 9 Projects
are as follows: Ginigera-Raichur, Bagalkot-Kudachi, Gadag-Wadi, Tumkur-Rayadurga,
Chikmagalur-Belur, Tumkur-Chitradurga -Davanagere, Shimoga -Shikaripura-
Ranebennur and Dharwad-Belagavi, Belur-Hassan.

Among these, the State Government is bearing 50% of the Project cost including land
acquisition cost for Ginegera-Raichur and Tumkur-Rayadurga new railway line projects.
In the remaining 7 Projects, Sate Government is sharing 50% of the construction cost and
100% Land acquisition cost. A grant of Rs.750 crore has been provided for these railway
projects in the financial year 2022-23. An amount of Rs. 500 crore has been released for
these projects as on Nov 2022. A grant of Rs.3711.20 crore has so far been released by
the state government for the implementation of these projects. Out of which Rs.1973.80
crore have been utilized for land acquisition compensation of 9131.6 acres and Rs.1737.40
crore have been released for railway works.

K-RIDE Road Over bridge / Road Under Bridge : Out of the total grant of Rs.75.00
crores provided for the year 2022-23 for the ongoing road over bridge / under bridge
construction works, grant of Rs 12.70 crores under Capital Investment Road has been
released. Details are given in Table 10.22.

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Table 10.22: Details of K-RIDE Road Over bridge / Road Under Bridge

Released
Project details Grant provided in 2022-23
grant
About construction of road over bridge in LC No.
0.70
66 at Koppal-Ginigera railway station.
Rs 75.00 crores
Regarding construction of road flyover in LC No.37
12.00
near Tumkur-Kyatsandra railway station yard.
Total 75.00 12.70
Physical Progress Details: At present 50 RoB’s/RuB’s have been taken up by the State
Government out of which 14 works have been completed and the completion certificate from
the railway department is awaited. Remaining 36 works are in progress.

II. Bengaluru Metro Rail Corporation Limited (BMRCL)

The Project is being implemented through a Special Purpose Vehicle (SPV) Bangalore
Metro Rail Corporation Limited (BMRCL), with an equal share holding owned by
Government of India and Government of Karnataka. An amount of Rs 2612.70 crores
(RE+OB) is allocated to the BMRCL for 2022-23 of which an amount of Rs. 792.02 crores
is released upto Jan 2023. The expenditure incurred is Rs. 3117.67 crores. The entire
allocation pertains to productive allocation. Details of Scheme wise progress of BMRCL
as on January 2023 (avalokana) given in Appendix 10.4.

Bangalore Metro Rail Project Phase-1 : The Phase-1 of the Bangalore Metro Rail Project
work is completed in stages from 2011 and commercial operations started. Presently on
an average of 5.3 lakhs passengers are travelling per day.

Bangalore Metro Rail Project Phase-2: The Phase-2 of the Bangalore Metro Rail Project
was sanctioned by GOI in February 2014. The Project consists of Four Extensions to the
existing lines and two New Lines. The total length of Phase-2 is 75.06 km with 61 stations
(49 Elevated and 12 Underground). The estimated project cost is Rs. 30695 Crore. The
details of summary of breakup of costs for new lines are given in the Table 10.23.

Table 10.23 : Phase-2 reach wise length and estimated cost

Length Estimated
of the Cost
Name of the Line Physical Progress status
line in
Km (Rs. in Crore)

Baiyappanahalli to 15.81 5,449.00 works are completed, Trial run is

PattandurAgrahara– under progress and programmed for
Whitefield commissioning by March 2023.
Mysore Road to 9.58 2,019.00 Mysore Road to Kengeri having a length
Challaghatta of 7.53 Kms has been commissioned on
29.08.2021 and Kengeri to Challaghatta 2.05
Kms works are under progress.
Nagasandra to 3.14 1,147.00 Civil works are under progress.
Madavara (BIEC)

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Length Estimated
of the Cost
Name of the Line Physical Progress status
line in
Km (Rs. in Crore)

Yalachenahalli to Silk 6.12 2,363.00 commissioned on 14.01.2021.

Institute

R.V. Road to 19.15 6,900.00 Civil works under progress.

Bommasandra

Kalena Agrahara to 21.26 12,817.00 a) From Kalena Agrahara to Dairy Circle

Nagawara 7.50Kms Civil works under progress

b) From Dairy Circle to Nagawara 13.76

Kms., Civil works are under progress.

Total 75.06 30,695.00

All works are in progress, as on November-2022 Physical and Financial progress are
73.50% & 78.20% respectively. Phase-2 works are programmed to complete in stages
from January-2021 and entire work is programmed to complete by March-2025.

Bangalore Metro Rail Project Phase-2A and 2B: The construction of 58.19 km long
Outer Ring Road – Airport Metro,Phase-2A Central Silk Board junction to K.R. Puram and
Phase-2B K.R. Puram to Bengaluru International Airport via Hebbal at an estimated cost
of Rs. 14,788.10 crore. Civil works are started. The project is programmed to complete by
September 2025.

Proposed Project:

Bangalore Metro Rail Project Phase-3: GoK approved to take up 45 Kms., of ORR West
Metro in the following routes: Kempapura to J.P. Nagar 4th Phase: 32.15 Kms, Magadi
Road from Hosahalli Metro Station to Kadabagere: 12.50 Kms.These lines are proposed
to be constructed through equal share holding owned by GoI&GoK. Presently, DPR
approved by Gok and has been sent to GoI for approval.

III. Airports

KSIIDC is acting as the nodal agency for implementation of infrastructure projects on

Public Private Partnership (PPP) model and Civil Aviation activities in the State.

oo Construction of Airports have been undertaken in Shivamogga, Vijayapura, Hassan

districts and works are in progress.
oo For Raichuru Airport Development Detailed Project Report (DPR) has been completed.
oo For the proposed airports at Koppal and Davangere districts pre-feasibility reports
have been prepared .
oo For the proposed Heliports at Hampi, Kodagu and Chikkamagaluru pre-feasibility
reports have been completed and Detailed Project Report (DPR) preparation have
been taken up.

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oo The Tadadi Eco Toursim Hub is being developed on 1819 acres of land at Tadadi,
Kumta Taluk. Feasibility Report is prepared, Expression of Interest has been called
and Master Plan is being prepared by Transaction Advisor.
oo Development of Logistics Park at Balepur village in Devanahalli on PPP model is
under progress.
Challenges and way forward

oo Shivamogga Airport to start operations in Feb-2023. Already, arrangements are being

made for the operation and maintenance of Shivamogga Airport.
oo Hassan and Vijayapura airports are expected to start operations by the end of 2023.
oo For Development of Raichuru Airport Construction work will be started soon.
oo For Karwar airport Master Plan and related studies have been completed.
oo Steps are being taken for the development of airports in Koppal and Davangere
district.
oo Steps are being taken to appoint a consultant to prepare DPR for Bellari Airport.
IV. Ports and Inland Water Transport

Karnataka has a coastline of 320 km with one major port and 13 minor ports. The New
Mangalore Port is the only major port in Karnataka which is under the control of Ministry
of Shipping, Government of India and remaining 13 minor ports are under the control of
the State Government. Among these 13 minor ports, Karwar and Old Mangalore ports
have handled significant volumes of cargo. Rs.19.91 Cr of revenue was earned by handling
5.78 lakh MT of cargo at State Minor Ports during 2022-23 (April 2022 to November, 2022).

An amount of Rs 962.83 crores is allocated to the Infrastructure Development and Ports

and Inland Water Transport Department for 2022-23 of which an amount of Rs. 936.19
crores is released upto 20th Jan 2023. The expenditure incurred is Rs. 750.45 crores.
Out of the total allocation, the productive allocation is Rs 773.50 crores of which the
expenditure incurred is Rs. 698.11 crores. Details of Scheme wise progress of Infrastructure
Development and ports and Inland water Transport Department as on January 2023(
AVALOKANA) is given in Appendix 10.5.

Ports Development: At present, Honnavar port is being developed by M/s Honnavar Port
Pvt. Ltd., (HPPL), Hyderabad. Action has been initiated to develop Belekeri (project cost
of Rs. 4118.00 Cr) & Pavinakurve Port (project cost of Rs. 3047.00 Cr) under PPP Mode.

Centrally sponsored Sagarmala Coastal Berth Scheme : Government of India has

approved revised Central Sector Scheme for providing support to Major/ Non-major
Ports/ State Government for creation of infrastructures to promote movement of cargo/
passengers by sea/ National waterways. Ministry of Shipping, GoI has approved 4 Projects
in Karnataka State to develop Karwar and Old Mangaluru Port.

Details of Proposals submitted to the Sagarmala Cell : Revised proposal of 81 projects

amounting to Rs.7634.58 Cr is submitted to GoI. In these Rs 1622.23 crores 26 projects
DPR has been submitted for approval, till date 12 projects of cost Rs. 598.60 is approved.

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Coastal Protection Works: During the year 2021-22, 2977m long seawall is constructed in
3 coastal districts at a cost of Rs.35.00 Cr. During 2022-23, budgetary allocation of Rs.10.00
crore is provided and 505 m long seawall is constructed at a cost of Rs.4.98 Cr. up to
November, 2022.

Inland water transport ferry service: There are 123 ferry services in the state, out of which
11 ferries are managed by the department by deploying mechanized vessels, 14 ferries are
operated by auction cum lease under the supervision of the department. Remaining 98
ferries are being operated by Zilla/ Taluk/ Gram Panchayat/Tourism/ Forest Department
and other private agencies. 6 LCT’s and 2 mini LCT’s, 4 Mechanized steel boats, 12 fiber
glass mechanized boats, 14 fiber glass boats & 4 wooden boats are operating at different
ferries of the State.

National Logistics Policy: National Logistics policy aims to reduce logistics costs to 7.5%
of GDP from 13% now. The National Logistics Policy is the obvious next step after the
PM Gati Shakti National Master Plan and would offer a comprehensive roadmap for the
growth of the whole logistics ecosystem.

LEADS (Logistics Ease Across Different States): Karnataka stands in 4th position 3.37
(Score 40) as per Logistics Ease Across Different States (LEADS). State should drastically
cut its logistics costs to increase the competitiveness of its exports and domestic products.
Reduced logistics costs increase efficiency across several economic sectors, promoting
value creation and entrepreneurship.

PM GATI SHAKTI NMP/SMP: 20 projects approved by EGOS(Empowered Group of

Secretaries) worth Rs.19612.38 Crores have been submitted to DPIITfor special assistance
under Part-I and Part-II of GOI Special Assistance Scheme for States for Capital Investment
projects for FY 2022-23. Further, 8 projects approved by EGOS worth Rs.6011 Crores have
been submitted to DPIIT for special assistance under Part-I and Part-II of GOI Special
Assistance Scheme f or States for Capital Investment projects for FY 2022-23.

28 projects worth Rs. 25623.38 Crores have been uploaded in the PM Gati Shakti
NMP/ SMP. Annual and Supplementary Action Plan (28 projects worth Rs. 25623.38
Crores) for FY 2022-23 has been submitted to DPIIT for special assistance under Part-I and
Part-II of GOI Special Assistance Scheme for States for Capital Investment projects for FY
2022-23. Department of Expenditure, Ministry of Finance, GOI, on the recommendations
of DPIIT, has sanctioned and Released Rs.182 Crores (Full share of state). IDP & IWT Dept. /
KSIIDC has been sanctioned and released Rs.5 Crores for setting up of PM Gati Shakti
Data Center. Commerce and Industries Department, GOK has been sanctioned and
released Rs.177 Crores for implementing Multi Modal Logistics Park (MMLP) at Oblapura,
Dabaspet, Bengaluru Rural. These two projects are under implementation.

PROJECT MONITORING GROUP (PMG): PMG in DPIIT is an Institutional Mechanism for

resolving various pending issues relating to critical infrastructure projects. Infrastrcture
Development, Ports & Inland Water Transport Dept. (IDP&IWT) , GOK is the Nodal Dept.
Managing Director, KSIIDC is the State Nodal Officer.DPIIT has been regularly reviewing
/ moniroting the progress of PMG projects. 30 PMG projects worth Rs. 87028.87 Crores
with 75 pending issues have been reviewed by GOI & GOK jointly.

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10.2.4 Telecommunication

The telecommunication system in the State is operated by both private and public sector
undertakings. Apart from BSNL, a number ofprivate companies like Vodafone Idea
Ltd., Reliance Jio Infocom Ltd., Bharati Airtel Ltd, MTNL, Reliance Communications Ltd/
Reliance Telecom Ltd etc. are providing the wireless andwireline phones. Details of service
Area wise access (wireless and wireline) subscriber base in Southern States is presented
inTable 10.24. The teledensity (both BSNL and private cellular operators) in the southern
states is presented in Table 10.25. Karnataka stands in 2ndposition among the southern
states in Urban teledensity (SDG Goal 9 indicator-Number of mobile connections per 100
persons). The number of internet subscribers per 100 population in Southern States is
presented in Table 10.26.

The number of landline connections and telephone exchanges has declined significantly.
The decline in landlines can be partly attributed due to increased private participation
in the mobile telephony sector and switchover to mobile phones. Compared to previous
year 19 post offices have decreased during the year 2021-22 in our state. The details of
number of post offices, telephone exchanges, number of telephones, mobile phones and
Internet connections in Karnataka from 2018-19 to 2021-22 are presented in Table 10.27.

Table 10.24 Service Area wise access (Wireless & Wireline) Subscribers base in Southern
States (Subscribers in Millions)

States Subscribers Percentage

Tamil Nadu 81.36 29.17

Kerala 44.20 15.85

Karnataka 67.99 24.38

Andhra Pradesh 85.30 30.58

Total 278.85 100.00

Source: Indian Telecom Services Performance Indicator Report for Quarter ending June, 2022

Table 10.25 : Southern States Teledensity (%)

Service Area Rural Teledensity Urban Teledensity Total Teledensity

Tamil Nadu(incl.Chennai) 64.52 139.56 104.58
Telangana 85.10 132.12 107.34
Kerala 211.33 92.69 123.65
Karnataka 70.20 139.73 100.85
Andhra Pradesh 122.90 228.10 83.82
National Average 58.46 134.72 85.13

Source: Indian Telecom Services Performance Indicator Report for Quarter ending June, 2022.

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Table 10.26: Service area wise number of internet subscribers per 100 population in southern
states

Service Area Rural Urban Total

Tamil Nadu 43.23 96.96 72.10
Kerala 153.49 61.92 85.77
Karnataka 48.76 103.52 72.90
Andhra Pradesh 51.32 95.08 69.16
National Average 37.86 103.27 60.73
Source: Indian Telecom Services Performance Indicator Report for Quarter ending June, 2022.

Table 10.27: Number of Post Offices, Exchanges, Telephones, Mobile phones and Internet
Connections

Post Telephone Mobile Internet

Year Telephones
offices Exchanges phones Connections
2018-19 9664 2793 1229813 6976379 474705
2019-20 9618 3012 754544 5402245 249071
2020-21 9612 2686 510255 5489813 243928
2021-22* 9593 2313 474576 9075002 1209209
Source: *Karnataka State at Glance- Statistical Report- FY 2021-22

WAY FORWARD

oo Development of all National Highways at least to 2 lane (1389 km of NH are having

Intermediate lane and single lane)
oo Development of all State Highways at least to intermediate lane (6312 km State
highways are having single lane.)
oo Development of all Major district roads with black top. (1955 km MDRs having metal
surface and 1116 km are earthen surface).
oo The need of the hour is to leverage net connectivity and spur economic activities/
services in rural areas
oo Provision of high quality and expanded coverage of public transport.
oo Considerable investment both, in public and private transport for sustainable
infrastructure.
oo Encourage non-motorable transport such as metro transport, bicycle, also walking
for short distances.
oo Remodelling and restructuring the urban transport design and infrastructure by
prioritizing rapid bus transit or light rail over private vehicles

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oo Promoting e-mobility through incentives, creation of infrastructure and R&D

(retrofitting petrol and diesel vehicles) through public-private partnerships
oo Adoption of instruments such as tax, subsidy, pricing of automobiles for the
sustainable transport system.
oo Energy-efficient public transport and incentivising investment in energy-efficient
technologies, industries and infrastructure.
oo Provide adequate grants and enhance fiscal incentives, such as R&D tax incentives,
subsidising research, tax credits etc to encourage technological and infrastructure
innovations. Facilitate grants & subsidies specifically for projects with high social
returns should be encouraged.
10.3 BANKING AND FINANCE INCLUDING COOPERATIVES

10.3.1 Introduction

Karnataka State has a fairly well-developed financial infrastructure. The State has
pioneered in establishment of many leading commercial banks and is home to a wide
network of commercial bank branches in the country. Currently, Twelve Public Sector
Banks, Twenty-two Private Commercial Banks, Two Regional Rural Banks, One Co-
operative Bank, 256 Scheduled Cooperatives Banks, Eight Small Finance Banks, Two
Payment’s Banks, and One Local Area Bank are operating in the State. Disbursement
of credit in rural areas takes place through co-operative banks, commercial banks, and
regional rural banks.

National Bank for Agriculture and Rural Development (NABARD), as an apex level financial
institution, plays a lead role in the promotion of agriculture and rural development, by
preparing Potential Linked Credit Plans (PLPs) and annual action plans at the grass
root level. A major portion of NABARD’s refinance and developmental initiatives are
channelized through the banking sector.

10.3.2 Karnataka – Banking scenario

An overview of the position of the banking network and ATM network in Karnataka
during the previous years is shown below:

Table 10.28: Banking Network Across Karnataka

Branch Network ATM Network

Category
Mar‘ 20 Mar‘ 21 Mar‘ 22 Mar‘ 20 Mar‘ 21 Mar‘ 22
Rural 4214 4218 4242 2538 2441 2246
Semi urban 2560 2629 2642 3489 3677 3116
Urban 2364 2375 4295 4322
4770 11813
Metro/PT 2331 2433 7246 7250
Total 11469 11655 11654 17388 17690 17175

Source: SLBC (Agenda Notes of 157th Meeting: page no.53, 88), Karnataka.

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The Category-wise Branch network across the Karnataka over the past three years is
shown in the Table 10.29.

Table 10.29: Category wise Branch Network-Year ending

Branch March 2020 March 2021 March 2022

Commercial Banks 8373 8414 8360

Regional Rural Banks 1775 1763 1747

KASCARD 203 203 203

DCC Bank (K.S.co-op Apex Bk) 858 866 901

Karnataka Industrial Co-operative Bank 38 38 * (38)

Small Finance Banks 159 308 399

Payment Banks 31 31 31

Local Area Bank (LAB) - - 13

KSFC 32 32 **(32)

Total 11469 11655 11654

*KICB-38 Banks** KSFC-32 Banks. Source: SLBC (Agenda Notes of 157th Meeting: page no. 53)

10.3.3 Deposits and Advances

The category wise aggregate deposits and advances in the State along with the C.D.
Ratio as on March 2022 is shown in the Table 10.30.
Table 10.30: Performance of Scheduled Commercial & Other banks. (Rs. in Crore)

Deposits Advances C-D Ratio

Indicator
2020-21 2021-22 2020-21 2021-22 2020-21 2021-22

Commercial Banks 1059484.9 1212864.30 722200.07 808367.28 65.66% 66.64%

Regional Rural Banks 47167.67 49433.95 36530.43 38528.22 77.00% 77.93%

Co-operative Banks 44854.36 49089.60 43379.64 48045.84 91.00% 97.87%

Total 1151506.96 1311387.85 802100.13 894941.34 70.00% 68.24%

Source: SLBC (Agenda Notes of 157th Meeting: page no. 153-154), Karnataka.

10.3.4 Aggregate Bank Deposits and Gross Credit in all States and UTs
upto Sept. 2022

As per RBI quarterly statistics statement & bankers’ committee, Karnataka stands in 4th
position in terms of aggregate deposits and gross credit in India .

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Table 10.31: Aggregate Bank Deposits and Gross Credit

September 2022

States & UTs Number of

Aggregate Gross
Reporting Rank Rank
Deposit Credit
offices
MAHARASHTRA 13438 3569745 1 3540339 1
NCT OF DELHI 3564 1577462 2 1444416 2
UTTAR PRADESH 17829 1433747 3 645236 7
KARNATAKA 10635 1379263 4 887053 4

Source : Quaterly Statistic issued by RBI - July 2022.

10.3.5: Details of Priority Sector Advances

The Advances made under various Priority Sectors in the State over the past three years
is shown in the Table 10.32.

Table 10.32: Distribution of Priority Sector Advances (Amount in Crore)

March 2020 March 2021 March 2022

Indicator % to Total % to Total % to Total
Advances Advances Advances
Advances Advances Advances
Total Advances 749651 - 802100 - 894941 -
Total Priority Sector
285959 38.15 311799 38.87 351165 39.24
Advances (PSA)
Agriculture 130905 17.46 149082 18.59 170411 19.04
MSMEs 102811 13.70 103830 12.94 128161 14.32
Weaker Sections 77378 10.32 87867 10.95 119428 13.34

Source: SLBC (Agenda Notes of 158th Meeting: page no. 23 & 157th Meeting: page no.114-118), Karnataka.

10.3.6. Ground Level Credit Flow for Agriculture:

10.3.6.1. Performance under Annual Credit Plan (ACP)

The overall achievement in Agriculture lending under ACP is shown in the Table 10.33.

Table 10.33 : Performance under ACP during last 5 years from 2017-2018 to 2021-22.

(Rs in Crore)

2017-18 2018-19 2019-20 2020-21 2021-22

Target

Target

Target

Target

Target

Particulars
Ach.

Ach.

Ach.

Ach.

Ach.

Crop Loan 58563 33539 64972 57804 72816 57804 66018 69910 71923.65 61309.96
Term Loan 28127 55566 33683 33733 42122 33733 46181 56547 54069.72 57477.74

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2017-18 2018-19 2019-20 2020-21 2021-22

Target

Target

Target

Target

Target
Particulars

Ach.

Ach.

Ach.

Ach.

Ach.
Total Agri 86690 89105 98655 91537 114938 91537 112199 126457 125993.37 118787.70
Percentage: Achievement to target
Crop Loan 57.27 58.22 79.38 105.90 85.24
Term Loan 197.55 94.65 80.08 122.45 106.30
Overall 102.78 70.65 79.64 112.71 94.28

(Source SLBC)

10.3.6.1.2 Annual Credit Plan 2022-23 and performance as on 30th November 2022

The Ministry of Finance, Government of India has fixed the ground level credit target
for agriculture, by the banks as Rs.115854 Cr for 2022-23. Considering the budgetary
formulations and on the basis of the ground level disbursements, the projections made
by NABARD in the Potential Linked Plans, the annual credit plan for agriculture for the
year 2022-23 for the State of Karnataka has been pegged at Rs.140873.49 Cr. The crop
loan target for 2022-23 has been fixed at Rs.81896.24 Cr and agriculture Term loan target
at Rs.58978.37 Cr. Agency wise performance under Annual Credit Plan as shown in the
Table 10.34.

Table 10.34: Agency wise performance under Annual Credit Plan as on 31.03.2022
(Rs in Crore)

Annual Disbursement as on 31.03.2022

Sector target % Ach
Comm. Coop KSFC &
2021-22 RRBs Total
banks Banks others
Agri and Allied 125992.17 81895.29 16218.38 19595.39 1078.06 118787.11 94%
MSME 111826.95 75138.60 1759.89 2690.82 464.15 80053.46 72%
Export credit 3627.92 494.96 0.00 0.00 0.00 494.96 14%
Education 5969.86 1199.36 36.71 0.26 0.40 1236.74 21%
Housing 30164.90 7305.91 191.85 222.92 303.05 8023.73 27%
Social - Infra 2200.95 548.86 0.00 23.45 0.00 572.30 26%
Renewable
Energy 3111.28 187.53 0.27 0.08 0.00 187.88 6%

Others 9498.22 3683.12 255.95 2955.03 1187.70 8081.79 85%

Total 292392.26 170453.63 18463.06 25487.94 3033.35 217437.98 74%
Source: State Level Bankers Committee (SLBC), Karnataka

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10.3.6.2 Institutional Development – Cooperatives

A meeting of High-Level Committee (HLC) under the Chairmanship of Additional Chief
Secretary and Development Commissioner, GoK was held in October 2022 to review the
financial health of Cooperative institutions & to discuss issues of cooperative institutions
also State Level Task Force (SLTF) & District Level Monitoring and Review Committee
(DLMRC) was held to review the financial achievement. Grant assistance of Rs. 5.00 lakh
was extended to 15 PACS under 3 DCCBs for infrastructure & for capacity building of the
staff of DCCBs/StCB under Cooperative Development Fund from NABARD and for staff
of DCCBs and Apex Bank & for four institutes i.e ACSTI, SAHARDA, NIRB and RICM & in
association with BIRD, Mangaluru, during 2021-22 on-location orientation training was
also imparted.

10.3.6.2.1 Institutional Development – Regional Rural Banks (RRBs)

Post amalgamation, the State has 2 RRBs namely Karnataka Vikas Grameena Bank
(KVGB) head quartered at Dharwad with 629 branches & Karnataka Gramin Bank (KaGB)
head quartered at Ballari with 1119 branches as on 30.09.2022. These 2 RRBs have been
making profits with CRAR above 9% & with CRAR of KVGB at 11.81%, for KaGB at 11.90% as
on 31.03.2022.

10.3.6.2.2. StCB/DCCBs- There are 22 Rural Cooperative Banks in the State comprising
of the Karnataka State Cooperative Apex Bank Ltd., at the Apex Level and 21 District
Central Cooperative Banks (DCCBs) at the district level duly licensed from R.B.I. As per
RBI instructions, all banks in Karnataka have achieved mandated CRAR of 9%.

10.3.6.3 Status of SHG and JLG (Joint Liability Groups) in Karnataka:

(i) The Micro Finance Profile of the State (As on March 2022)
oo Cumulative Number of SHGs Saving linked - 802762
oo Number of SHGs credit linked during 2021-22 - 454020
oo Bank Loan disbursed during the year 2021-22 - Rs. 13771.43 Cr.
oo No. of SHGs with loan outstanding - 679643
oo Bank Loan outstanding - Rs. 16520.71 Cr
oo Average Loan per SHG issued- Rs. 2.43 Lakh
oo Percentage of Women SHGs-92%
(ii) Digitization of SHGs – E-Shakti project: In Karnataka, Digitization of SHGs is being
carried in 29 districts. Around 3.10 lakh SHGs have been digitized benefitting 36.20 lakh
rural poor in 13839 villages.

10.3.6.4. RIDF Assistance to Karnataka

Rural Infrastructure Development Fund (RIDF) was set up in 1995-96 with an initial corpus
of Rs.2000 Cr under RIDF Tranche I for the year 1995-96, the allocation has reached the
level of Rs.40490.95 Cr under RIDF XXVII (2021-22). During 2022-23, as on 10.01.2023, against
normative allocation of Rs.1500.00 Cr to the State, RIDF projects to tune of Rs.1515.15 Cr
are submitted to NABARD HO for sanction under RIDF XXVIII. During 2022-23, as on
10.01.2023, an amount of Rs.492.15 Cr was disbursed to the State Government under the
RIDF. Since its inception, total number of projects, loan sanctioned, disbursements made
is shown in the Table 10.35.

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Table 10.35 : The Sector-wise Sanction and Disbursements Details (Rs. in Crore)

No. of Total Financial Loan Amount

Name of the Sector
projects Outlay Sanctioned Disbursed

Agriculture and allied projects 4901 1848.61 1714.76 1299.04

Social sector projects 20996 5830.02 4503.01 3074.21

Irrigation projects 5200 5121.92 4293.92 3724.66

Rural roads and bridges 12569 8020.95 6538.55 5974.97

Total 43666 20821.50 17050.24 14072.88

27% of RIDF loan has been sanctioned to Social Sector Projects. The share of Agri & allied
and Rural Connectivity were of the order of 35% and 38% respectively.

Impact of RIDF in the state: The sanctioned projects on completion will provide the
following benefits:

oo Irrigation infrastructure- 4.78 Lakh ha will be brought under Irrigation.

oo Agriculture & Allied- 1684 Veterinary Institutions, 853 Infrastructure projects in Rural
Markets, 258 Raita SamparkaKendras, 33 Fish Jetties, 10 Cocoon Quality Testing Labs,
3 Pesticide Residue Labs, 1 high tech cocoon market and training center.
oo Social Sector- 13353 Rural Education Infrastructure projects (Primary & Secondary
schools, PU colleges, Polytechnic, ITI, GTTC, agriculture & horticulture colleges etc.),
6472 Anganwadis, 337 Health Infrastructure Projects (PHC, CHC, MCH).
oo Connectivity of 45353 km of Rural Roads and 60300 m of Rural Bridges.
oo 6 Drinking water supply projects benefitting 2318 habitations & 231 villages.
oo Warehouse Infrastructure Fund (WIF): With an allocation of Rs.5000 Cr to NABARD
in the budget for 2014-15, WIF loans are availed by Karnataka State Warehousing
Corporation (KSWC) for 416 projects with a loan of Rs.1003.90 Cr. and Department of
Agriculture & Marketing (DAM) for 112 projects with a loan of Rs.696.53 Cr.
oo Long Term Irrigation Fund (LTIF): LTIF fund setup in 2016-17 with initial fund of
Rs.20000 Cr has provided assistance for 5 irrigation projects viz. Narayanpur Left Bank
Canal (ERM), Upper Tunga Irrigation Project, Bhima LIS, Karanja and Sri Rameswar
Irrigation of Rs.1837.34 Cr with an amount of Rs.1183.32Cr as Central Share.
oo Micro Irrigation Fund (MIF): GoI launched Pradhan Mantri Krishi Sinchayee Yojana
(PMKSY) on 1st July 2015 with the vision of extending the coverage of irrigation. Micro
Irrigation Fund with a corpus of Rs.5000 Cr in 2019-20 for mobilizing additional
resources for expanding coverage under micro irrigation loans at 3% below the cost
of funds. As on March 31, 2022 the cumulative sanction and releases under MIF stands
at Rs.3970.20 and Rs.2083.70 Cr, respectively to an area of 12.83 lakh ha involving 10.20
lakh farmers.

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oo Dairy Processing and Infrastructure Development Fund (DIDF): The Union Finance
Minister set up Dairy Processing and Infrastructure Development fund (DIDF) of
Rs.8004 Cr to modernize Dairy Industry. Progress made in Implementation is shown
in the Table 10.36.
Table 10.3.6.4.2 Details of Projects Sanctioned for KMF under NABARD Scheme.

(Rs. in Crore)

Sanctioned Disbursed
Name of the project (Dairy plant) with district
by NABARD by NABARD
Kanva, Ramanagara district 210.00 209.46
Channarayapatna, Hassan district 87.53 58.12
Uppoor, Udupi district of Dakshina Kannada Milk Union 55.00 46.41
Alanahally, Mysore district of Mysore Milk Union 69.00 69.00
Chikkaballapur of Kolar -Chikkaballapur Milk Union 103.18 80.86
Kanakpura, Ramanagara district of Bangalore Milk Union 200.00 200.00
Kuderu, Chamrajanagar district of Chamrajanagar Milk Union 60.00 60.00
Ballari of Raichur – Ballari – Koppal Milk Union 0.00 0.00
Hassan of Hassan Milk Union 135.33 0.00
Grand Total 920.04 723.85

oo Fisheries and Aquaculture Infrastructure Development Fund (FIDF): The proposed

FIDF size of Rs.7522.48 Cr by GoI envisaged for creation of fisheries infrastructure
facilities both in marine and inland fisheries sectors to achieve the target of 15 million
tons by 2020 set under the Blue Revolution.
10.3.6.5. Other Development Initiatives

(a) Farmers Producers Organization (FPOs):

oo Collectivization of agricultural produce for the purpose of enhancing their net income.
oo Assisting 384 FPOs in 31 districts through 80 odd NGOs / Institutions acting as
Producer Organization Promoting Institutions (POPIs)/ Community Based Business
Organizations (CBBOs) with 194523 farmers as members with a grant assistance of
Rs. 51.96 Cr.
oo Out of the 384 FPOs, 354 are registered thereby mobilizing share capital of Rs. 19.64
Cr. Majority of the FPOs are involved in production, procurement and marketing of
various agri-horti crops, High Value Crops such as chia seeds, tender coconuts, coffee,
Udupi-mattugulla.
Initiatives of NABARD

oo NABARD in collaboration with Rashtriya e-Markets ltd. (ReML), an SPV of GoK and
NCDEX, seeks to provide wider market access to farmers/ 108 FPOs through the
online unified marketing platform (UMP).

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oo In convergence with Tribal Cooperative Marketing Development Federation of India

Ltd. (TRIFED), GoI and Dept. of Tribal Welfare Van Dhan Vikas Kendra (VDVK) is set
up for setting up primary processing unit for various agricultural commodities like
millets, dal, tamarind, oils etc.
oo NABARD has collaborated with Coffee Board, GoI for branding, packaging, labelling
etc., for better marketability of products of tribal FPOs.
oo NABARD with KAPPEC has initiated direct export of Rose onion from FPOs comprising
predominantly of small and marginal farmers.
oo National level MoU has been signed between NABARD & APEDA for capacity building
of various stakeholders through conduct of outreach programs, awareness creation
programs & workshops.
oo NABARD, Karnataka Regional Office joined hands with Karnataka State Agricultural
Produce Processing & Export Corporation Limited (KAPPEC), a GoK owned entity, in
supporting the Gherkin growing FPOs of Tumakuru District by facilitating their direct
linkage with Gherkin Exporters.
oo NABARD, Karnataka RO has taken initiative for providing export-oriented business
licenses through Yalli Infoventures Pvt. Ltd. in collaboration with APEDA, KAPPEC
and FSSAI.
(b) Integrated tribal development: NABARD has been implementing integrated tribal
development projects on wadi (small orchard up to one acre) basis in various tribal
dominated pockets of the country, through “Tribal Development Fund”. Cumulatively,
NABARD has sanctioned 34 projects in 14 districts with a total financial assistance of
Rs.103.27 Cr in the State so far under this fund.

(c) Watershed Development Fund (WDF): In order to mitigate the vagaries of drought,
over an area of 3.23 lakh hectare, NABARD has sanctioned 344 Watershed Development
Projects of which 339 are regular WDF projects (both completed and ongoing), 3 are Spring
shed Watershed Development Projects and 2 are Integrated Watershed Management
Schemes (IWMS) in the State involving grant assistance of Rs.379.14 Cr.

(d) Integrated Watershed development for Rehabilitation of Degraded soils and

Climate Change Adaptation: Designed to address issues of soil and water conservation
& other issues climate proofing of completed watershed projects under NABARD-KfW
Soil Health Project, 30 projects in 12 districts have been sanctioned and have completed
implementation in the state with financial assistance of Rs.14.18 Cr.

(e) Sustainable Development Plan (SDP) in completed watershed projects: In order to

enable the VWCs to function as vibrant and sustainable field level institutions for natural
resources management and improving the livelihoods of watershed community after
the completion of the project, the above programme has been formulated by NABARD
defining the roles and responsibilities of the VWCs and their capacity building, extension,
technology transfer, financial inclusion needs convergence of institutional credit, etc.,
during and in the post watershed implementation period and post withdrawal of the PFA
from the project area. The programme has been implemented with NABARD support in
50 completed watershed projects in the State with financial support of Rs.4.96 cr.

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(f) Climate Change: NABARD is the National Implementing Entity (NIE) for Green
Climate Fund (GCF), National Adaptation Fund for Climate Change (NAFCC) and
Adaptation Fund of United Nations Framework for Climate Change (AF-UNFCC) &
others. One project viz. Conservation and Management of Indigenous cattle & sheep
in the wake of Climate Change in Karnataka has been sanctioned by GoI under
NAFCC with a total outlay of Rs.18.10 Cr against which Rs.18.10Cr has been released.
10.3.6.6. Information Technology in Cooperative Banks:
Cooperative Banks have to take more initiatives in the states to sustain in the current
banking scenario with a view to compete with emerging new banks with latest
technology solution. Accordingly, with the assistance and guidance of NABARD, all the
Rural Cooperative Banks (RCBs) in the State implemented their Core Banking Solutions
by the end of 2014 and covered all the KCC accounts with RuPaycards. All 21 DCCBs
and KStCB has accorded approval for implementation of PFMS i.e. Public Financial
Management System, 18 DCCBs are live on PFMS platform which will enable cooperative
Banks to transfer funds to beneficiary account directly from GoI.

During the last two years, sanction accorded for 1365 micro-ATMs & 1208 PoS/mPoS
machines which may be utilized to enable a true digital environment in the rural areas
of the State. NABARD under Financial Inclusion Fund has also accorded sanction for 29
Demonstration Vans in various districts for doorstep delivery of Banking Technology, for
onboarding to Positive Pay System, BBPS and Green PIN facility, capacity building of
18120 BC/BFs etc.

10.3.6.7. Production Credit for Short Term (Seasonal Agricultural Operations)

In the wake of the COVID-19 pandemic, a special liquidity facility (SLF) to RRBs and
Cooperative Banks with a view to ensure unhindered flow of credit from banks to farmers
to carry out their agricultural operations smoothly. During the year 2021-22, Rs.1865 Cr
was disbursed to Cooperatives and RRBs under SLF.
(i) Short Term Credit for purposes other than crop production: NABARD extends Short
Term (Others) refinance to Cooperative Banks and RRBs to meet other short term credit
requirements of farmers other than crop production such as marketing of crops, fisheries,
industrial cooperatives, working capital loans for economic activities.
(ii) Interest Subvention Scheme of the Government of India: GoI provides 2% interest
subvention to banks for extending crop loan out of own funds at 7% p.a. upto Rs.3.00
lakh per borrower. The GoI has introduced Modified Interest Subvention Scheme(MISS)
for the year 2022-23 at 1.5 % interest subvention to banks for extending crop loan out of
own funds at 7% p.a. up to Rs.3.00 lakh per borrower. Further, GOI is in the process of
development of integrated portal for KCC-ISS under the MISS.

(iii) Progress under Kisan Credit Card Scheme in Karnataka

Name of the Agency No. of live KCCs as on 30.09.2022 Percentage

Scheduled Commercial Banks 1226481 27.06%
RRBs 712651 15.73%
Cooperative Banks 2592392 57.21%
Grand Total 4531524

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10.3.6.8. Investment Credit for Agriculture:

(i) Resources for Capital formation / Term Lending in Agriculture: NABARD has been
supplementing the resources of banks and other eligible agencies by refinancing the
credit extended by them for capital formation in agriculture and allied activities. The
agency-wise details of refinance for term loans disbursed in Karnataka during the last 5
years were as under.

(Rs. in crore)

Agency/ Year 2017-18 2018-19 2019-20 2020-21 2021-22

Comml. Banks 2742.32 5745.46 2,204.62 3,226.23 3584.04
Coop. Banks/ 1556.33 1387.29 1,748.62 1,745.01 1841.83
KSCARDB
RRBs 1238.66 1520.27 2,064.79 1,916.20 1452.83
NBFC/NBFC-MFI 892.53 1468.55 795.00 1078.01 1188.73
Total 6429.84 10121.57 6813.03 7965.45 8067.43

(ii) Special Refinance Schemes of NABARD

a) Special Refinance Scheme for Cooperative Banks : Transformation of Primary

Agriculture Cooperative Society (PACS) as Multi-Service Centre (MSC): Under this facility,
NABARD has sanctioned 1085 projects to various PACS in Karnataka with financial outlay
of Rs.461.22Cr and loan amount of Rs.376.39 Cr.

b) Special Refinance Scheme for promoting Micro Food Processing Enterprises:

NABARD will provide concessional refinance @4% to all eligible FIs i.e. CBs, SFBs, RRBs
and DCCBs to encourage banks to lend micro food processing activities and create
sustainable livelihood.

c) Schematic Refinance for Water, Sanitation and Hygiene (WASH): NABARD provides
concessional refinance @5.15 % per annum at quarterly interest rates to Scheduled
Commercial Banks, Small Finance Banks, RRBs and State Cooperative Banks and @6.60%
per annum at quarterly interest rates to NBFCs & NBFC-mFIs for financing WASH related
activities such as construction of toilets/ twin-pit toilets, etc.

10.3.6.9. Off farm Sector Initiatives under Gramya Vikas Nidhi (GVN)

i) Marketing Infrastructure : Rural Haats and Marts: Setting up of rural haats and marts
were supported in the State since more than five years. Almost 45 rural marts and 28 rural
haats have been sanctioned in the State with a total investment of Rs.422 lakh including
current year’s sanctions.

ii) Skill Development: Through this programme, NABARD has aimed at bringing
in collectivization of weavers/artisans through skilling/up skilling /re-skilling. With
a cumulative investment of Rs.216 lakh in this sector since last five years, NABARD,
Karnataka, have created more than 3500 skilled youth/women in various fields’ viz.,
weaving, computer basic skills, repair and maintenance of farm machineries, health
Care, tailoring, banking, financial services, insurance, para-medical services, etc. During

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2021-22 a mini off farm producer organization is being established with the trainees
under Aari embroidery in Dharwad District, for which NABARD has extended Rs.49.97
lakh under OFPO scheme.

iii) Collectivization - Off Farm Producer Organization (OFPO): In last 2 years, NABARD
has extended grant support of Rs.442.97 lakh for formation of 5 OFPOs covering 1550
artisans in the areas of Handloom – Fabric Weaving and Natural Dye, Handicrafts – Kasuti
Work, Channapatna Toys, Kolhapuri Leather Footwear and Aari embroidery in Shimoga,
Dharwad, Ramanagara, Belgaum.

iv) Infrastructure through DPR Scheme: NABARD have sanctioned two projects under
this scheme with a total financial assistance of Rs.41.76 lakh in Gulburga and Uttara
Kannada to promote location specific developmental projects in the off-farm sector.

v) Interventions under Geographical Indication (GI): Aims to provide end-to-end

support to facilitate pre-registration as well as post-registration activities for Geographical
Indications, as an impact, 150 authorized users and 10 registered users in Ilkal sarees
and authorize user’s registration in mattugulla brinjal have been initiated. NABARD has
sanctioned Rs.5.55 lakh during 2021-22, to create website for GI tagged Udupi sarees and
for registration of Kari Ishad Mango, from Uttara Kannada District.

10.3.7 State Term Lending Institutions:

10.3.7.1. Industrial Finance:

Karnataka State Financial Corporation (KSFC) is a State Level Financial Institution

established by the State Government in the year 1959 under the provisions of SFCs Act,
1951 to cater to the long-term financial needs of Micro, Small & Medium Enterprises
(MSMEs) in the State of Karnataka. Details of Sanctions and Disbursements are shown in
the Table 10.37.

Table 10.37: Details of Sanctions and Disbursements made by KSFC (Rs. in Crore)

Particulars 2019-20 2020-21 2021-22 2022-23 (30.11.2022)

Sanctions 667.81 401.66 493.25 306.27
Disbursement 727.9 432.96 386.46 256.75

Source: KSFC

10.3.7.2. Karnataka State Industrial and Infrastructure Development Corporation

(KSIIDC)

KSIIDC, established in 1964, has been greatly instrumental in the industrialization of the
State, especially in the large and medium sector. KSIIDC has stopped financial lending
activity since October 2002 onwards. At present, recovery of the past lending/advances
and loans and disinvestment of Equity are the main activity. However, certain Investments
as per the directions of Government of Karnataka are being made from time to time.
KSIIDC continued its proactive role in the promotion of infrastructure projects on Public
Private Partnership model and its role as Nodal Agency for Bangalore International
Airport Project. Duly noting the initiatives taken up by KSIIDC in the infrastructure sector,

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the name was changed to “Karnataka State Industrial and Infrastructure Development
Corporation Limited” with effect from November 22, 2010.

10.3.7.3. Non-Performing Assets (NPA) in Banks:

The category wise NPA is shown in the Table 10.38.

Table 10.38. NPA across the Type of Banks (Rs. in Crore)

As on 30/9/2021 As on 30/9/2022
Type of Banks
A/Cs Amount A/Cs Amount
Commercial 1468284 49083.60 1479733 47582.68
RRBs 358317 5534.99 329322 5408.22
Cooperatives/KSFC 46684 1718.82 27882 3249.98
TOTAL 1873285 56337.41 1836937 56240.88

Source: SLBC (Agenda Notes of 159th Meeting: page no.175-176), Karnataka.

10.3.7.4. Co-operative Credit

The Cooperative credit system in Karnataka has its own place in the credit delivery to
rural and urban areas. In Karnataka two types of Cooperative Credit Institutions are
functioning, one is looking after short term and medium term credit and another looking
after credit needs of long term.

a) Short term and Medium term Credit Co-operative Structure (STCCS): The Karnataka
State Cooperative Apex Bank through its affiliated District Central Cooperative Bank
(DCCB) and Primary Agriculture Cooperative Societies (PACS) at the village level extends
short term credit to the farmers and others. The total number of DCCBS is 21 with 849
branches. There are 5878 PACS functioning in the state. During 2021-22 all the 21 DCCBs
in the State have shown profits. Financial Status of DCCB details is as shown in the Table
10.39.

Table 10.39 : Consolidated Financial Status of DCCB (Rs. in Crore)

Particulars 2019-20 2020-21 2022-22 2022-23 (Sept)

No of DCCBs 21 21 21 21
Total share capital 1636.12 1989.13 1902.25 2257.17
States’ share capital 25.04 30.49 32.50 97.67
Share of state share capital % 1.53 1.53 1.71 4.33
Deposits 28093.45 32323.85 36993.17 35127.25
Borrowings 10070.72 12559.30 11619.69 14803.55
Loans &Advances Outstanding 28492.57 33478.12 33631.44 40532.00
Banks showing profit 20 21 21 21

Source: Co-operative Society.

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b) Long Term Credit Cooperative Credit Structure (LTCCS): There are 177 Agriculture
and Rural Development Banks (KSCARD) that caters to Long Term Credits.

c) Loan Disbursement: The Performance under terms wise is shown in the Table 10.40.

Table 10.40: Performance of Short Term, Medium Term and Long-Term Credit

(Rs. in Crore)

Year Type of Loan Target Achievement Percent

Short term 19370.00 19396.24 100.14
2021-22 Medium term 980.00 1128.35 115.14
Long term 460.00 447.20 97.22
Short term 22337.00 12697.77 56.85
2022-23
Medium term 1131.00 630.35 55.73
(November)
Long term 532.00 151.91 28.55

Source: Co-operative Society

d) Recovery of Loans: The Comparative position of recovery of Short term, Medium term
and Long term loans under the Cooperative Credit System in the State is shown in the
Table 10.41.

Table 10.41: Recovery of loans in Co-operative Sector (In Percentage)

2019-20 2020-21 2021-22 2022-23

Type of loan 2018-19
(Nov) (Tentative)
Short term 90.93 92.00 96.23 96.65 93.47

Medium term 82.00 78.32 90.44 88.25 71.28

Long term 55.23 40.02 69.59 58.04 22.00

e) Subsidized Agriculture loans to farmers: During the period 2014-15 to 2021-22 Short
Term loan of up to Rs.3 lakhs were disbursed at 0% and MT and LT loans up to Rs.10.00
lakhs are disbursed at 3%. During 2019-20, 2020-21, 2021-22, Rs.1028.35 Cr, Rs.993.33 Cr,
Rs.1022.90 Cr has been reimbursed to 2390822, 2350433, 2481359 farmers respectively.
During the year 2022-23 a budget provision of Rs.1078.02 Cr was made. And till now,
an amount of Rs.506.84 Cr has been released to Co-operative Institutions on behalf of
1292496 farmers.

f) Interest subsidy to Self Help Groups (SHGs): The scheme of advancing loans to SHGs
in Karnataka at 4 % is being implemented from 01-04-2007. Since the year 2017-18 to
2020-21 Women SHGs are lending at the net rate of 0% and Men SHGs at 4% by adopting
NRLM/ NULM Scheme. During the year 2021-22 Kayaka scheme has been merged with
SHGs scheme and loans up to Rs.5 lakhs are being lent to women groups at 0% and men
groups at 4%. Loans from Rs.5 lakhs to Rs.10 lakhs for self-employment are being lent at
4% of interest rate.

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A loan of Rs.1234.82Cr in 2019-20, for 37479 groups has been provided and Rs.83.30Cr
of interest subsidy has been released. Similarly, in 2020-21 Rs.1201.68 Cr of loans to
33713 groups and Rs.86.50 Cr of interest subsidy and in 2021-22 Rs.1436.51 Cr to 35256
groups and Rs.87.30 Cr of interest subsidy has been released. During the year 2022-23,
till November 23797 groups have been provided with Rs.975.54 Cr of loan and 87258
groups have Rs.2033.27 Cr of loan outstanding. In this year budget provision of Rs.96.61
Cr has been provided and as on November 2022, Rs.16.52 Cr of interest subsidy has been
released to 27424 groups.

g) Rs. 1 lakh Loan Waiver Scheme per Family -2018: Crop loan up to Rs.1,00,000 per
family was waived for the farmers who had loan outstanding as on 10-7-2018 in Primary
Agriculture Credit Cooperative Societies, DCC banks, PCARD banks and LAMPS. A
maximum of Rs. 1.00 lakh of benefit was given to each family, excluding the salary earners
and pensioners with more than 20000 salary per month and income tax assesses. It
was estimated Rs. 8480 Cr of loan waiver will benefit 19.14 lakhs farmers. Government
released Rs.2600 Cr in 2018-19, Rs.5092.32 in 2019-20 and Rs.604.15 Cr in 2020-21 totaling
Rs.7987.47 Cr to 17.06 lakhs farmers. An amount of Rs.167.51 Cr is yet to be released to 0.31
lakh farmers and balance 0.13 lakhs farmers are yet to be identified under the scheme.

h) “BadavaraBhandhu” Scheme: Incepted in 2018-19, BadavaraBhandhu scheme

provides loans of Rs.10000 at 0% interest to street vendors. In 2020-21, Rs.8.24 Cr loan was
disbursed to 5219 street vendors. The loan outstanding as on 29-3-2021 has been waived
and Rs.7.57 Cr has been released to 10,897 street vendors.

i) Measures during Covid 19 period: Extension of payment of loan (moratorium)

instalment period during Covid 19 period 01.03.2021 to 30.06.2021 for 617805 farmers and
65500 Self Help groups was provided.

j) FRUITS software developed by e-governance in cooperative societies: To avoid the

farmers visiting Sub registrar office to create charge /mortgage on RTCs at the time of
availing agricultural loans and releasing deeds at the time of repayment of loans in PACS,
DCC banks and PCARD banks, has been completely made online from 1-4-2022 through
FRUITS software.

k) Central Govt Schemes

i. AthmaNirbar Bharath- Central Government Scheme: Under the NABARD scheme

refinance is being provided at the rate of 4% to convert PACS as Multi Service Centers.
Under the Central Scheme of Agri Infra Fund 3% interest subsidy is being provided
by central govt. In Karnataka both the schemes have been converged and target
was fixed to cover 1549 PACS. During the year 2021-22, 1043 PACS have submitted
applications and NABARD has sanctioned Rs.302.31 Cr to DCC Banks lend to 873
PACS. Till November end, DCC banks have disbursed Rs.158.00 Cr to 706 PACS.
ii. Computerization of Primary Agricultural Cooperative Societies: Initiatives has
been taken to computerize 6040 Primary Agricultural Cooperative Societies with
the total project cost of Rs.236 Cr at Rs.3.91 lakh per PACS to give farmers and rural
customers better services. The software and training cost of Rs.43 Cr will be borne
by center and NABARD, the remaining cost of Rs.193 Cr will be borne by Centre and
State in the ratio of 60:40. The state government’s portion will be Rs.77 Cr.

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iii. Entry of Cooperative society’s information in National Cooperative data base

software: In this software, information of 6040 PACS, 16656 milk cooperative societies
and 682 fisheries cooperative societies are being entered in the first phase.
Achievements and Initiatives of NABARD in Karnataka:

National Bank for Agriculture and Rural Development (NABARD) has been playing a
lead role in the socio-economic development of the State of Karnataka through various
business, promotional, institutional and policy interventions. Following are major
achievements and Initiatives of NABARD in Karnataka:

oo Refinance Assistance to Banks: NABARD provides refinance to the cooperative

banks and RRBs. During 2021-22 provided financial support of Rs.22943 Cr., which
is 13% over and above Rs. 20251 Cr during 2020-21. As on 15.01.23, Rs.15866.48 Cr has
been extended for rural lending to banks and other financial institutions and Rs.11059
Cr was disbursed under Short term and Rs.4807.48 under Long term refinance.
oo Infrastructure Support to State Govt.: Under RIDF, a project worth Rs.2084.21 Cr
was sanctioned and Rs.1354.51 Cr was disbursed during 2021-22 to State Government
for developing rural infrastructure. The cumulative sanctions and disbursement for
Karnataka under RIDF as on 10.01.2023 are to the tune of Rs.18156.92 Cr and Rs.14206.88
Cr respectively for 43792 projects.
oo Piloting eKCC: The proposed e-KCC portal being developed by NABARD could be
linked to FRUITS portal to enable bankers to verify the data filled in by the farmers,
which would help in de-duplication of the beneficiaries in availing bank loan/interest
subvention/ insurance.
oo Piloting Agri Value Chain Financing: NABARD Karnataka has started a pilot on “Agri
Value Chain Financing at Pavagada Taluk in Tumkur district on mango/ vegetable
value chain along with IFHD and SBI, which is in the final stages of grounding.
oo Integrated Farming System: NABARD has extended financial assistance of Rs 25.00
lakh to UAS, Dharwad for Demonstration of Integrated Farming System practices.
oo JLG – Farm Pond Project: NABARD has sanctioned grant assistance @ Rs.4000/- per
JLG for formation and credit linkage of 1000 JLGs, which would further take up the
activity of farm pond construction. Under the project, 700 Farm ponds have been
constructed so far in Dharwad, Haveri, Gadag and Belagavi districts by forming 138
JLGs.
oo Support to Farmer Producer Organizations (FPOs): Special focus has been given
for promotion and nurturing of FPOs. Around 373 FPOs have been promoted by
NABARD covering over 1 lakh plus farmers as members.
oo Support to Cooperatives in the State: A major initiative to strengthen the cooperatives
is computerization of Primary Agricultural Credit Societies (PACS), which will improve
the efficiency of these grass root level institutions in extending seamless services to
their farmer members. In the first phase, 5491 PACS of Karnataka have been identified
for computerization.
oo Credit Potential for Priority Sector Lending for FY 2023-24: NABARD prepares district
wise Potential Linked Credit Plans (PLPs) which is a step towards decentralized credit

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planning with the basic objective of mapping the potential for the development of
priority sector with institutional credit. An aggregate credit potential of Rs.358763
Cr (sector wise: Agriculture-49.90%, Micro, Small and Medium Enterprises-37.59%,
Export Credit-1.61%, Education-1.72%, Housing-7.97%, Renewable Energy-0.36%, Social
Infrastructure involving Bank Credit-0.85%) has been projected for FY 2023-24 for the
priority sector in the State.
Achievements of Co-operative Sector:

oo A target has been fixed to lend 3 lakh new farmers in the present year and up to
November end, 1.31 lakh new farmers have been lent Rs.1412.77 Cr. Efforts have
been made to extend agricultural loan to all eligible farmers in order to increase in
agricultural loan ratio to GDP from agricultural sector. Co-operative institutions have
disbursed working capital loans of Rs.109.43 Cr to 44995 dairy farmers and Rs.4.28 Cr
to 428 fishermen for marine fishery purpose through KCC cards.
oo Under the Agri Infra Fund scheme of AtmaNirbhar Scheme of Central Government
Rs. 312.74 Cr of loan has been sanctioned at 4% interest rate to 895 PACS through
NABARD to create post-harvest facility to farmers and Rs.158.02 Cr of loan has been
disbursed to 706 PACS by DCC banks. Under central sponsored scheme it has been
intended to computerize 6040 Primary Agricultural Cooperative Societies with the
total project cost of Rs.236 Cr at Rs.3.91 lakhs per PACS to give farmers and rural
customers better services.
oo Ministry of Cooperation, Central Govt with the objective of ‘Sahakar se Samriddi’
has developed National cooperative data base software to capture the information
of all cooperative societies in order to identify the gaps and to tap the potentials in
cooperative sector. In this software information of 6040 PACS, 16656 milk cooperative
societies and 682 fisheries cooperative societies are being entered in the first phase.
Challenges for Co-operative Sector

oo Though cooperative banks could cover 38 % of the farmers in the state, average
short term agricultural loan to farmers from cooperative institutions have stood at
Rs.71096 per farmer, much lesser than commercial banks due to the fund availability
to cooperative banks.
oo DCC banks deposit position is weak compared to commercial banks as these banks
are not scheduled banks and not able to acquire the new digital technology and offer
better services to customers.
WAY FORWARD

For achieving $1 trillion GDP

oo Out of 122 villages with the population of more than 3000, 18 villages are already
covered by brick-and-mortar branches and remaining 104 villages are covered by BCs.
Out of these 104 villages, 52 villages are covered by IPPB centers out of which 8 or not
staffed and IPPB to take steps to make them fully operational. In the remaining 52
villages, all member banks are advised to explore the possibility of opening of brick-
and-mortar branches. However as per RBI guidelines all the above 122 villages are
covered by banking outlets.

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oo Pro active measures may also be taken to increase the Bank credit to GSDP ratio
which is <50% at present to more than 50%.
While the existing business and promotional operations will continue, the focus areas for
NABARD in the coming years are as follows:

oo Launch of eKCC portal integration with FRUITS portal of GoK. Strengthening Agri-
Value Chain infrastructure by financing & PACs through Central Scheme on PACS
computerization. Targeted Infrastructure Development in Tier 3 & 4 towns.
oo Strengthening farmer institutions like SHG Federations, FPOs/OFPOs, PACS etc. in
terms of governance, business diversification and profitability
oo Skill development, ICT based innovations in agriculture & Natural Resource
Management.
oo NABARD can increase the refinance facility from present 60% to 75% to DCC Banks
operating in back ward district and drought prone districts in order to increase the
per capita crop loan to farmers of Cooperative institutions.
oo RBI may consider PACS as small savings banks and allow them to do banking facility
to rural poor as given to post offices.
oo The credit offered to farmers from Co-operative institutions is many a times limited
due to their limited financial resources, to alleviate the same the co-operative set up
can think of ceding paripassu charges in favour of banks which can supplement the
financial needs of the farmers adequately.

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APPENDIX 10.1

Scheme wise progress of Public works Department

as on January 2023 (AVALOKANA)

(Rs. in crores)

Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Maintenance of High Court Building 2.00 2.00 0.00
Chief Engineer (C & B South), Bangalore 302.58 305.89 237.95
Chief Engineer (C & B North), Dharwad 0.38 0.27 0.22
Supervision ( C& B South) 0.59 4.02 1.89
Execution (C & B South) 13.54 14.56 10.45
Execution (C & B North) 12.33 9.43 7.41
e-Goverance in PWD 0.25 0.04 0.00
Chief Engineer (C&B), Kalaburagi Division 0.22 0.15 0.05
Unspent SCSP-TSP Amount as per the SCSP-TSPAct 2013 7.91 0.00 0.00
Execution (C & B), North East Zone(Kalburgi) 10.40 7.12 6.38
Quality Assurance Unit 26.06 20.12 20.30
Chief Engineer (C & B Central), Shivamogga 2.87 2.49 1.71
Legislative Assembly Building Works 3.00 2.25 2.19
Legislative Council Building Works 0.35 0.14 0.12
Vidhana Soudha, VikasaSoudha, MS Building, VV Tower Bldg 22.00 16.77 12.97
and Suvarna Soudha Belgaum -Maintenance Works
Repairs, Maintenance & Minor Alterations to Various 250.00 192.76 173.99
Departmental Buildings
Administration of Sand Mining 0.90 0.68 0.60
Repairs to PWD Quarters and Judicial Quarters 125.00 94.79 86.01
Chief Engineer National Highways 9.32 9.11 6.50
Repairs and Carriages 1.80 1.50 1.27
Execution/SLAO and Ordinary Repairs 30.26 29.94 22.51
Plan Monitoring Unit - State Highway Development Project 7.73 7.49 5.76
Planning and Road Asset Management Center [PRAMC] 3.68 3.96 3.01
Maintenance of State Highway Bridges 65.00 51.30 39.99
State Highway Maintenance 505.00 377.90 338.44
State Highway - Road Safety Works 75.00 56.25 55.45
Karnataka State Highway Improvement Project (KSHIP) - 15.41 15.75 12.50
Establishment
District and Other Road Bridges 57.00 44.67 35.68
Maintenance of District & Other Roads under C.M’s Rural 323.42 246.61 227.44
Road Development Fund

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure
District & Other Roads Maintenance 380.00 289.38 251.91
District and Other Roads - Road Safety Works 60.00 45.00 43.43
KRDCL-Payment of Government Guarantee Commission 5.72 0.00 0.00
Departmental Buildings 300.00 119.91 109.01
Residential Buildings 80.00 20.23 19.04
Major District Road - Bridges 150.00 106.31 99.07
State Highways Bridges 40.00 35.02 24.26
State Highways Road Works 500.00 271.50 247.77
State Highway Development Project 1400.00 430.00 1319.83
Karnataka State Highway Improvement Project (KSHIP)-II 869.00 347.07 434.47
-WB and ADB
Karnataka State Higways Improvement Project KSHIP -III 1300.00 879.95 350.00
(ADB 2nd Loan) - EAP
Land Acquisition Cost- State Highway 100.00 183.26 43.46
District & Other Roads 1695.00 1376.31 1214.77
MDR Works Financed from NABARD 100.00 16.34 13.48
Roads Financed from Central Road Fund Allocations 500.00 465.46 464.80
Unspent SCSP-TSP Amount as per the SCSP-TSPAct 2013 4.09 1.79 1.45
Land Acquisition Cost -District and Other Roads 50.00 27.48 13.53
Road Safety Works and Barricading along the Nalas 30.00 22.50 22.50
Karnataka Road Development Corporation Limited 450.00 427.60 262.50
Government Architect & Other Public Works Offices 3.11 3.15 2.25
CSS - Court Buildings construction of Residential Buildings 105.00 78.75 78.75
CSS - Court Buildings 70.00 52.99 52.49
Total 10065.92 6717.96 6379.56

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Appendix 10.2

Scheme wise progress of Transport Department as on January 2023 (AVALOKANA)

(Rs. in crores)

Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Unspent SCSP-TSP Amount as per the SCSP-TSPAct 2013 4.91 4.91 4.71
Unspent SCSP-TSP Amount as per the SCSP-TSPAct 2013 3.52 1.76 1.28
Commissioner for Transport 26.55 21.60 18.61
State Transport Authority 0.95 0.90 0.67
Karnataka State Transport Appellate Tribunal 0.84 1.07 0.75
Implementation of Measures to Control Air Pollution and
25.00 6.34 5.99
Other Activities
Regional Transport Authority 83.66 78.67 65.36
Payments under the Karnataka Guarantee of Services Act 0.50 0.00 0.00
Transport Welfare and Road Safety 300.00 146.04 23.75
Inspection of Motor Vehicles -Administration &Maintainance 20.98 16.43 15.16
Free Bus Pass Facility to Freedom Fighters 5.21 1.30 1.30
Bangalore Metropolitan Transport Corporation 830.59 681.56 667.65
North West Karnataka Regional Transport Corporation 596.91 466.87 129.34
North East Karnataka Regional Transport Corporation 352.96 258.53 75.74
Free Bus Travel Facility to the Blind 26.83 6.71 6.71
Free Bus Travel Facility to the Handicapped 26.97 6.74 6.74
Free Bus Pass To Widows Of Freedom Fighters 0.07 0.02 0.02
Concessional Bus Travel Facility to Senior Citizens 48.56 12.14 12.34
Subsidy Towards Students & Other Concessions Extended by
723.53 538.62 172.86
KSRTC
Issue of Free Bus Passes to the dependents of Martyrs 2.01 0.50 0.50
Free Bus Travel Facility to Endosulphan affected Victims 10.72 2.68 2.68
Free Bus Pass Facility to Goa Activists 2.79 0.70 0.70
RTO Building and Test Driving Track 15.00 3.18 1.70
Purchase of Land for Construction of RTOs 1.00 0.00 0.00
Purchase of New Buses 200.00 0.00 0.00
Karnataka State Road Transport Corporation 30.00 22.19 22.74
North West Karnataka Road Transport Corporation 25.00 18.50 10.57
Bangalore Metropolitan Transport Corporation 138.50 77.73 60.23
North East Karnataka Road Transport Corporation 15.00 11.39 11.11
Scholarship to Children of Yellow Board Taxi Drivers 50.00 0.00 0.00
3568.56 2387.08 1319.20

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 Appendix 10.3

Details of Financial performance statistics of KSRTC, BMTC, NWKRTC and KKRTC (in crores)
%
Change
% 2021-22 2022-23
2021-22 2022-23 2021-22 2022-23 in 2022- 2021-22 2022-23
Sl Change (up to (up to % Vari-
Item up to 30- up to 30- up to 30- up to 23 to up to 30- up to 30- % Var
No (upto 30-11- 30-11- ation
11-21 11-22 11-21 30-11-22 2021-22 11-21 11-22
Nov) 2021) 2022)
(upto
Nov)
KSRTC BMTC NWKRTC KKRTC
1 Total receipts 1445.47 2874.54 +98.9 -- -- -- 833.82 1684.16 102.0 811.88 1403.36 72.9
2 Total expenses -- -- -- 1222.74 1674.64 37 -- -- -- 975.06 1348.80 38.13
(Excl. taxes)
a) Operating 1717.30 2731.65 59.1 1201.22 1706.32 42.0 1066.79 1547.51 45.1 738.93 1049.80 42.1
expenses
b) Non- 49.60 57.30 15.5 21.52 27.88 29.6 44.69 30.53 -31.7 236.13 299.00 26.6
Operating
expenses
3 Profit before -321.43 85.59 -- -- -- -- -277.66 106.12 -- -163.18 54.56 -133.4
taxes
4 Total taxes 0.00 59.56 - -- -- -- 0.00 57.18 -
a) Passenger tax -- -- -- 0.00 0.00 0.00 0.00 0.00 -- 0.00 0.00 0.00
b) Motor vehicle 62.99 122.17 -- 0.00 59.56 - 0.00 61.37 0.0 0.00 57.18 -
& other taxes
+94.0
5 Total expenses 1829.89 2911.12 +59.1 1222.74 1734.20 41.8 1111.48 1639.41 47.5 975.06 1405.98 44.2
6 Net profit /loss -384.42 -36.58 -- -- -- -- -277.66 44.75 -- -163.18 -2.62 -98.4
7 Prior period -- -- -- -- -- --- --- -- 0.00 0.00 0.00
adjustment
(Profit / Loss)
8 Total Profit /Loss -384.42 -36.58 -- -188.65 -305.12 116.47 -277.66 44.75 -- -163.18 -2.62 -98.4
Economic Infrastructure

Source: KSRTC, BMTC, NWKRTC and KKRTC

417

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Appendix 10.4

Scheme wise progress of BMRCL as on January 2023 (AVALOKANA)

(Rs. in crores)

Total
Scheme Name RE OB Release
Expenditure
Cash loss of BMRCL 233.80 0.00 233.80 234.95
Reimbursement of Taxes & Duties to 300.00
0.00 300.00 300.00
BMRCL
Equity Investment (BMRCL) 0.00 1005.93 0.00 1134.71
Loans for BMRCL 8.22 564.75 8.22 722.79
Support to BMRCL for Debt Repayment 500.00 0.00 250.00 725.22
Total 1042.02 1570.68 792.02 3117.67

Note : Expenditure amount met from loan fund hence it is more than the release and OB.

Appendix 10.5

Scheme wise progress of Infrastructure Development and ports and Inland water
Transport Department as on January 2023 (AVALOKANA)

(Rs in crores)

Allocation Total
Scheme Name Release
(BE+SE) Expenditure

Karnataka Maritime Board 31.42 12.04 11.55

Capital Expenses of Karnataka Maritime Board 14.30 10.17 8.33
PPP Developmental Activities 2.00 0.50 0.50
Development of Minor Airports 4.61 0.43 0.00
Regional Air Connectivity 47.00 21.47 21.48
Sea Erosion Control Works 10.00 7.50 7.48
Development of Minor Air Ports 150.00 325.00 260.00
Karnataka Viability Gap 5.00 0.00 0.00
KRIDE - ROB/RUB Projects 75.00 24.70 3.00
Cost Sharing Railway Projects 500.00 527.50 431.50
Share Capital to Konkan Railways 73.50 0.00 0.00
CSS - Sagarmala Project -Dredging Works and Break
50.00 6.88 6.61
Water Works
Total 962.83 936.19 750.45

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 CHA PT E R

HUMAN DEVELOPMENT
11
11.1 HEALTH AND FAMILY WELFARE

Karnataka has made significant progress in improving the health status of its people
in the last few decades. The state has made remarkable progress improving its health
infrastructure at different levels in both rural and urban areas. As per SDG India index 3.0-
2020-2021 the performance of Karnataka state is in 6th place scoring the index of 78,
behind Gujarath (86), Maharastra (83) and Tamil Nadu (81). The outlines of demographic
and health scenario of Karnataka state during the past recent years are depicted in below
Table.

Table 11.1 : Achievement of the demographic and Health indicators

Sl.
Indicator 2015 2016 2017 2018 2019 2020
No.

1 Birth Rate 17.9 17.6 17.4 17.2 16.9 16.5

(for 1000 Population)*
2 Death Rate 6.6 6.7 6.5 6.3 6.2 6.2
(for 1000 Population)*
3 Total fertility rate** 1.8 1.8 1.8 1.8 1.7 1.7
4 Maternal Mortality Rate 97 92 83 69 69 69
(for every 100000 live births)*
5 Infant Mortality Rate 28 24 25 23 21 19
(per 1000 Live births)*
6 Under-Five Mortality Rate 31 29 28 28 26 21
(per 1000 children) *
7 Eligible Couples protected 63 63 63 63 63 68.7
(%)*
Male 67.9 67.9 67.9 67.9 67.9 67.9
Average life
8
expectancy (years)*
Female 70.9 70.9 70.9 70.9 70.9 70.9

Source: * SRS, ** NFHS

The above table reveals that the progress of the health indicators have been encouraging
in the State during the last few years. As per SRS 2020, the death rate is already at a lower
level and the birth rate is declining faster. The maternal mortality rate which was 97 in
2015 has been decreased to 69 in 2020 , similarly the infant mortality rate which was 28
in 2015 has been gradually decreased to 19 in 2020. Attempts have been made to remove
intra-regional and regional disparities by improving health services.

oo As per the current Sustainable Development Goal (SDG) 2030 Karnataka has to
reduce the under 5 Mortality Rate from 28 to <25 but it has already been achieved by
the state.
oo The percentage of institutional deliveries is 99.9.
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oo Current Neonatal Mortality Rate (NMR) is 14 (SRS 2020). Current goal is to reduce
NMR from 18 to <12 according to Sustainable Development Goal (SDG) 2030.
oo The current Early Neonatal Mortality Rate is 11 (SRS 2020).

Health Infrastructure

The State has a wide institutional network providing health services both in urban and
rural areas. The primary health infrastructure in rural areas has fulfilled the norms required
under the “Minimum Needs Programme” at the aggregate level. 24 district hospitals, 154
Taluka hospitals, 53 other hospitals under health and family welfare, 55 Autonomous
teaching hospital, 202 Community health centers, 2396 Primary health centers and 9476
Sub Centers are providing health care facilities in the state as per KAG 2021-22.

Further 31215 private medical establishments are registered under Karnataka Private
Medical Establishment Act for providing quality care according to medical ethics by
prescribing service quality of which 9871 (32%) are in Bangalore district alone followed by
Dharwad 2092 (7%) and Dakshina Kannada 1980 (6%).

Amount allocated in the budget under various schemes to provide health facilities
for 2022-23 is Rs.9614.00 crores of which productive allocation is Rs. 5808.81 crores. An
amount of release is Rs.6397.20 crores of which productive release is Rs. 3014.16 crores.
The expenditure incurred upto January 2023 is Rs. 6706.34 crores of which productive
expenditure is Rs. 3122.49 crores. Details are furnished in below table.

Table 11.2 : Scheme wise progress upto January 2022-23 (Rs. in crores)

Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Primary Health Centres 810.46 709.02 815.98

District Establishment 74.31 62.97 75.19

Opening and Maintenance of AYUSH Clinics/ 152.12 128.39 143.18

Hospitals and Offices
Maintanance of Health Buildings includes 47.72 36.71 14.88
AYUSH
Mobile Health Units 0.39 0.39 0.42

Strengthening of PHCs - Maternity Homes 15.55 14.65 6.45

National Anti - Malaria Programme 102.66 84.05 96.42

Repairs to Hospital Equipments 5.92 1.96 0.80

Telephone Charges (includes AYUSH) 5.12 3.86 0.89

Primary Health Centres (GOI Pattern) (MNP) 626.18 535.32 628.13

Taluk Level Hospitals 6.67 4.12 2.36

Provision for Amulances including X-Ray / 6.60 3.07 0.88

other facilities to Taluk Hospitals

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Establishmest of Blood Bank 0.10 0.10 0.00

Establishment of Sub Centres (MNP) 26.96 26.57 12.72

Buildings (including AYUSH) 11.63 6.42 0.55

Supplies and Materials 5.03 3.72 0.40

District Family Welfare Bureau 63.11 48.40 55.95

Rural Family Welfare Centres at PHCs 142.99 106.89 124.89

Rural Sub-Centres (Opened Under Family 329.89 271.39 316.21

Welfare)
PHCs run by NGO-GiA, Urban Family Welfare 107.20 100.19 106.45
run by State Government and State Health
Transport Organisation
Supply of Drugs and Syringes and Pulse Polio 2.05 0.60 0.41
Immunisation
District Health Office Buildings 12.64 6.67 4.01

Construction of Hospital Buildings-NABARD 41.36 30.00 17.23

Opening and Maintenance of AYUSH Offices, 156.76 160.93 106.54

Colleges and Hospitals, Health,IEC and
Training
Maintenance, Repairs and Extension of Land 2.00 1.54 0.56
and Buildings for AYUSH
AYUSH - Drugs manufacturing Institutions 3.92 4.35 2.50
and Drug Testing Laboratories
AYUSH - Cultivation of Medicinal Plants and 2.03 2.09 1.00
Karnataka State Medicinal Plants Authority
AYUSH Buildings 10.00 2.66 0.00

Karnataka State Mental Health Authority 1.31 0.66 0.65

Karnataka State Medical Supplies Corporation 1.49 0.75 0.37

Limited(KSMSCL)
Procurement of disposable medical materials 50.00 0.00 0.00
for COVID-19 through KSMSCL
Health and Family Welfare and other Health 25.00 12.50 11.08
Institute building maintenance
Psychiatric Clinics, Hospitals for E.D & TB San, 1212.95 1121.97 1076.53
Maj & Dist & Taluk Hospitals and Blood Banks
Shuchi Yojane 49.00 0.00 0.00

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Karnataka Mental Health Programme in 1.00 0.50 0.50
Districts
Cochlear Implant Programme 32.00 16.00 6.00

Community Mental Heatlh Programme in all 2.42 0.93 0.45

Districts
PPP for Diagnostic Tests and Dialysis 30.00 15.00 14.40
Treatment
Director of HFW Services,HE & Training 355.73 169.77 110.14
Centre,Engineering Division,Vector Borne
Diseases Control and Control of Blindness
Programmes
Health Information Help Line 20.00 0.96 0.87

Health -Information, Education and 3.00 1.47 1.44

Communication (IEC)
Renumeration to Admin Staff under 1.83 0.92 0.83
Integrated Diseases Surveilance Programme
Karnataka State AIDS Prevention Society and 11.02 5.01 2.65
Indian Red Cross Society
To improve the health status of Endosulphan 4.39 3.29 2.46
affected people
Food Safety Programme and Public Health 20.74 16.13 13.41
Institute
Oral Health for BPL Senior Citizens 1.00 0.56 0.40

XV Finance Commission Grants for 551.53 0.00 118.46

Strengthening Primary Healthcare Facilities
Ayushman Bharata - Pradhana Mantri Jana 1039.28 779.41 910.55
Arogya Yojane(PMJAY)
Aroghya Kavacha 273.35 99.15 107.74

Unspent SCSP-TSP Amount as per the SCSP- 3.76 1.41 1.21

TSPAct 2013
State Family Welfare Bureau 5.23 5.51 4.12

Regional Health and Family Welfare Training 13.13 11.58 9.59

Centres
Urban Family Welfare Centres run by State 5.30 5.23 3.76
Government
Honorarium to ASHA Workers 255.14 250.89 172.48

State Institute of HFW , DTCs and Indian 20.34 17.10 14.19

Population Project-Population Centre

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Hospital Construction/Upgradation 450.00 213.64 194.70

Mobile Health Clinic 8.00 0.00 0.00

Buildings - Drug Controller 2.00 0.00 0.00

Karnataka State Medical Supplies Corporation 150.00 0.00 0.00

Limited
Mobile Cancer Detection Units 4.50 0.00 0.00

Purchase of Ambulance(Arogya Kavacha-108) 58.00 0.00 0.00

Unspent SCSP-TSP Amount as per the SCSP- 18.55 0.00 0.00

TSPAct 2013
Government College of Pharmacy, Bangalore 12.14 10.63 7.59

Drugs Controller 24.68 23.68 16.72

Drugs Testing Laboratory, Bangalore 17.19 15.74 11.75

CSS - AYUSH -National Ayush Mission 17.70 18.29 15.55

CSS - Strengthening of State Drugs 4.50 4.74 3.47

Regulatory System Scheme
CSS - Strengthening of State Drugs 5.21 8.50 5.21
Regulatory System Scheme
CSS - PM Ayushman Bharat Health 212.93 0.00 0.00
Infrastructure Mission
CSS - AYUSH -National Ayush Mission 14.40 15.09 15.09

CSS - National Health Mission 1754.54 1193.16 1316.98

CSS - National Health Mission 60.00 0.00 0.00

CSS - National Health Mission 38.35 0.00 0.00

Grand Total 9614.00 6397.20 6706.34

Achievements
Maternal and Child Health
Karnataka has aimed at controlling population and reducing infant and maternal mortality
through strengthening health services. The Child Health Programme comprehensively
integrates interventions that improve child survival and addresses factors contributing to
Infant and Under 5 Mortality. Low birth weight, malnutrition, nonexclusive breastfeeding
(during the first 6 months of life), indoor air pollution, lack of complete immunization, lack
of hygiene and many other socio economic factors lead to infant mortality. Childhood
Pneumonia continues to be the top most infectious killer among under-five children.

Many initiatives have been taken up like Facility Based Newborn Care (SNCU NBSU NBCC)
Home Based Newborn Care, Janani Shishu Suraksha Karyakrama (JSSK), Child Death

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Review, Kangaroo Mother Care and Lactation Clinic, Integrated Management of Neonatal
& Childhood Illnesses (IMNCI), Intensified Diarrhea Control Fortnight (IDCF), Home
Based Care of Young Child (HBYC), Social Awareness & Action to Neutralize Pneumonia
Successfully (SAANS), World Breastfeeding Week (WBW) and National Newborn Week
(NNW). Details of infant and under 5 mortality Rate from 2011-2020 are furnished below.

Table 11.3 : Details of infant and under 5 mortality Rate

Indicator 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Infant 35 32 31 31 28 24 25 23 21 19
Mortality
Rate (per
1000 Live
births)

Under-Five 40 37 35 35 31 29 28 28 26 21
Mortality
Rate (per
1000
children)

* Data Source: SRS 2020

From 2011-2020 the IMR is decreased from 35 (2011) to 19 (2020) and Under- Five
Mortality Rate decreased from 40 (2011) to 21 (2020)

The trend in Under 5 Mortality Rate, Infant Mortality Rate, Neonatal Mortality Rate and
Early Neonatal Mortality Rate from 2009 to 2020 is in decreasing trend and the same is
depicted in the graph.

Figure 11.1 : Child Mortality Trend in Karnataka

50
48
45 45

41
40 40
38
37
35 35 35 35
32
31 31 31
30
29
28 28 28
26
25 25 25 25
24 24
23 23
22 22
21 21
20 20 20 20
19 19 19
18 18 18
16 16 16
15 15
14
13 13
12 12
11
10

5
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Under-Five Mortality Rate (per 1000 children) Infant Mortality Rate (per 1000 Live births)
Neonatal Mortality Rate Early Neonatal Mortality Rate

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Family Welfare

The State offers an excellent family welfare Programme operating through the existing
health infrastructure. The main objective of the Programme is to provide better health
services in general and family planning services in particular to check the rapid growth
of population. Though sterilization continues to be the main method of family planning
the spacing between the births of two children is also equally emphasized. During 2022-
23 (up to November 2022) 1.67 lakhs sterilization conducted as against the target of 4.96
lakhs The achievement of IUD &PPIUCD is 1.60 lakhs as against the target of 3.59 lakhs.
The Percentage of couples protected is 68.2 upto November 2022.

Major Health Sector related initiatives

a) National Health Mission

The NHM seeks to provide Accessible Affordable and Quality Health Care to the rural
population especially the vulnerable sections. 11 programs viz RMNCH+A including
immunization, National Vector Borne Disease Control Programme (NVBDCP), Revised
National Tuberculosis Control Programme (RNTCP), National Leprosy Eradication
Programme (NLEP), National Programme for Control of Blindness (NPCB), Integrated
Disease Surveillance Project (IDSP), Additional Services to Under National Health
Mission, Programme of Pulse Polio, Mission Indradhanush, Health Education Training,
Preventive of Deafness and other Programs, Strengthening of public health facilities by
providing new constructions additional alternation and renovation are implemented
under National Health Mission.

b) National Vector Borne Disease Control Programme (NVBDCP)

State is implementing the activities for prevention and control of Vector Borne Diseases
like Malaria, Filaria, Dengue, Chikungunya and Japanese Encephalitis. During 2022-23
(upto November 2022) 272 cases of Malaria, 8376 dengue, 2002 Chickungunya, 372 AES &
25 JE cases were reported. Only 4 deaths under dengue are reported.
c) National Tuberculosis Control Programme
India is the country with the highest burden of TB. The World Health Organization (WHO)
TB statistics gives an estimated incidence figure of 2.61 million cases of TB for India
during 2021 as per the global TB report 2022. Around 70,000 to 80,000 TB patients put
on treatment annually in Karnataka under NTEP, which aims at universal access and zero
TB deaths as a part of end TB strategy. During 2022-23 (upto November 2022) the cases
notified are 75756 of which 19285 are from private sector and 56471 cases from public
sector. The Death rate has been decreased from 8% in 2009 to 6% in 2021 despite high
HIV – TB burden. The success rates of TB treatment have improved to 82%.
d) National Leprosy Eradication Programme
The prevalence rate of leprosy is dropped in Karnataka from 40/10000 population
in the year 1986 to 0.31/10000 population in November 2022. At present 05 districts
have prevalence rate 0.50 to 1 (Ballari, Bidar, Gadag, Koppala& Uttara Kannada) per 10000
population as on November 2022. Leprosy cases under treatment are 2156. The prevelance
Rate of Leprosy from 2015-16 to 2022-23( till Nov2022) is given in the graph.

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Figure 11.2 : Leprosy Prevalence Rate

0.50

0.40 0.41
0.40
0.37

0.33
0.32
0.30 0.31

0.23
0.20 0.20

0.10

0.00
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23*

e) National Programme for Control of Blindness

The aim of the National Program for Control of Blindness is to reduce the prevalence of
blindness from 1.4% (1974) to 0.3% by the year 2020 by developing eye care infrastructure
human resources, improving accessibility quality of eye care services. The present
prevalence rate of blindness is 1.61 in Karnataka as per National Rapid Assessment of
blindness survey (2015-2019). During 2022-23 upto 2022 November 1.46 lakh children
were detected with refractive error and 3.44 lakh cataract surgeries conducted.

f) The Integrated Disease Surveillance Project (IDSP)

The program aims at establishing a decentralized state-based system of surveillance

for communicable diseases, so that timely and effective public health actions can be
initiated in response to health challenges in the country at the state and national level.

Other Health Programme Initiatives

Progress achieved under other health programmes during 2022-23 upto November 2022
are as detailed below.

oo The beneficiearies covered under various programmes are Janani Suraksha Yojane
-249237, Rashtriya BalSwasthya Karyakram - 1755, Arogya Kavacha - 26038, Dialysis
- 327951, Telemedicine – 4758207, Janani Suraksha Vahini – 48308 and Nagu Magu –
55719.
oo Under Ayushman Bharat-Arogya Karnataka – 9.23 lakhs beneficiaries were availed the
benefits and an amount of Rs. 746.69 crores has been paid to the network hospitals
for treating these beneficiaries.

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oo Under Arogya Kavacha at present there is one ambulance for every 85000 population
with a total of 711 Ambulances. During 2022-23 (upto Nov 22), 395523 emergency
cases were attended as against 528462 Emergency calls received.
Jyothi Sanjeevini Scheme (JSS)

This health assurance scheme is specifically for the benefit of all State Government
Employees and their dependents without any cap on the financial limit and the treatment
is totally cashless. Eligibility of general ward, semi-private and private wards depends on
the basic pay drawn by the employee.

Organ Transplant Scheme

Under the scheme 11 hospitals are empanelled of which 9 are private, 2 are Government.
51 patients benefited (Liver 04, Heart 07, Kidney: 40) availing Rs.230.40 lakhs upto
Nov 2022.

Ayushman Bharat-Arogya Karnataka Scheme

Ayushman Bharat - National Health Protection Mission programme renamed as Pradhan
Mantri Jan ArogyaYojana (PMJAY) to provide health protection to over 10 Crore poor
families identified based on the latest Socio-Economic Caste Census (SECC) data. Since
both Arogya Karnataka and Ayushman Bharat have the same goal, scope and similar
modalities, hence integrating both the schemes and co-branded name as “Ayushman
Bharat-Arogya Karnataka” implemented in an Assurance Mode.
Under the Ayushman Bharat- Arogya Karnataka scheme the enrolment card called
AB-ArK Card and an unique AB-Ark ID is generated and provided to the patient at the
enrolment center on payment of a fee of Rs.10/-.It is also issued in Common service
centers, B1, K1 and Seva Sindhu centers on a payment of Rs. 35/-. Totally 3419 hospitals
have been empanelled of which 2940 are government and 479 are private hospitals.
1.22 crores AB-ARK cards are issued and 9.23 lakhs beneficiaries availed the benefits of
Rs.746.69 crores.

Cost of treatment to be borne by the Government

For “Eligible Patients” the financial assistance up to Rs.5.00 lakh will be provided for
specified simple secondary care, complex secondary health care, tertiary health care and
emergency health care per annum, for a family. For “General Patient” the benefit limit
is 30% of Government package rates, with overall annual limit of Rs.1.50 lakh per family,
per year.

a) AYUSHMAN BHARATH –Health and Wellness Centers

Health and Wellness Centers were launched under the Ayushmana Bharat – Arogya
Karnataka scheme to strengthen Comprehensive Primary Health Care (CPHC) services
for the community. As on November 2022, the number of upgraded health & wellness
centres are 8637 of which 6106 are Rural Sub Centres, 2166 Rural PHCs and 365 Urban
Primary Health Centres. . The programme aimed at delivering comprehensive primary
health care services to the public at their doorsteps in a qualitative manner like free
medicine, free diagnostic facilities etc under 12 package of services.

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National Urban Health Mission

National Urban Health Mission aims to improve the health status of the urban poor
particularly the slum dwellers and other staged sections by facilitating equitable access
to quality health care.

Under NUHM the human resources are out of 3970 posts approved under different
Categories by ROP. only 3441 posts are filled up and the remaining 529 posts are vacant,
among them 31 Medical officers, 10 Specialists, 238 Junior Health assistants posts are
vacant.

HMIS & RCH in Karnataka

1. HMIS (Health Management Information System)

At present in Karnataka around 12,700 health facilities are reporting in HMIS portal. State
Health Index Indicators data are taken from HMIS portal.

Table 11.4 : Nurse & Doctor Ratio (Per 3 Doctors) (1 Lakh Population)

Population
Staff Nurse &
Doctors Bed Ratio=
Nurse Projected Govt. Hosp. Doctor ratio=
Year (Govt.+ (No. of
(Govt.+ Population Beds ((Nurse/
NHM) Beds*100000)/
NHM) Doctors)*(3))
(Population)

2016-17 5899 11476 67234222 65279 97 5.84

2017-18 6196 11300 68362118 65309 95 5.47
2018-19 6515 11237 69522770 65309 93 5.17
2019-20 6515 11237 70717332 65309 92 5.17
2020-21 8941 14263 71947005 67045 93 4.79
2021-22 7179 14095 71946948 69645 96 5.89

2. RCH Portal
RCH (Reproductive and Child Health) portal is a centralized web based application for
early identification and tracking of the individual beneficiary throughout the reproductive
lifecycle. Application facilitates to ensure timely delivery of full component of antenatal
postnatal & delivery services and tracking of children for complete immunization services.
87.88% of pregnant women and 83.51% of children registered during the year 2022-23
(upto November 2022).
3. Nutrition Rehabilitation Centres (NRCs) in Karnataka
Nutrition Rehabilitation Centres refers to a unit for ‘inpatient, centre based’ care of children
with severe malnutrition (SAM) are usually treated either in facility/hospital based care
units without medical complications. In Karnataka a total of 118 Nutrition Rehabilitation
Centres are functioning in the State.
Karnataka has a high burden of under nutrition, with 35.4 percent (NFHS-5) of its children
stunted, or too short for their age, indicating that they have been undernourished for a
long time. 19.5 percent of the state’s children are wasted or too thin for their hight, which

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is a sign of recent food insecurity or illness, 32.5 percent children are under weight, which
on account of both chronic and acute under nutrition, About 50 percent of women in
Karnataka and 65.5 percent of children suffer from Anemia. The incidence is high in
North Karnataka and in the Kalyan Karnataka Region.
The districts/talukas with high incidence of malnutrition are – kalburgi, Raichur, Yadgir,
Koppala. Ballari, Bidar and Gadag, that require urgent attention. There are 102 talukas
with high incidence of malnutrition that need on integrated multisectoral approach to
address malnutrition. The multisectoral and inter generational approach as adopted in
the World Bank Project in Chincholi and Devadurga needs to be adopted as a holistic
approach. Targeting adolescent girls with anemia will help to reach to the root cause of
women and child malnutrition.
4. The Pre-conception and Pre-Natal Diagnostic Techniques (Prohibition of Sex-
Selection) Act, 1994
Prevent Sex detection and selective abortion of female foeticide to increase sex ratio.
As per census child sex ratio is 946 in 2001 and 948 in 2011. A total of 6073 scanning
centers are registered in the state of which 5751 are private scanning centres and 322
are government scanning centers. Till date a total of 90 cases have been registered
for violating PC & PNDT act, of which 56 cases are penalized for violation. 34 cases are
pending for judgment. Below is the map of District wise sex ratio as per 2011 census
5. Ayushman Bharat Health Account (ABHA)
ABHA number Is a unique 14 digit number to identify a person and update their health
records across multiple health service providers. 291665 RCH ID linked with ABHA ID in
Karnataka, which stands first among the state in India.
Rashtriya Bal Swasthya Karyakram (RBSK)

Rashtriya Bal Swasthya Karyakram (RBSK) is implemented in the State to screen the
children studying in 1st to 12th standard in Government, Government Aided, Government
Residential Schools / Colleges and in Aganwadi Centers. 94.73 lakhs school children with
age group of 0 to 18 years were screened during 2022-23 (upto Nov 2022) as against the
target of 141 lakhs which contributes to 67%.

Weekly Iron & Folic Acid Supplementation Program (WIFS)

During the current year (upto Nov 2022) 47.37 lakh Iron Folic Acid tablets (pink and blue)
were distributed to the children in age group of 5 to 19 years as against the target of 62.00
lakhs. Similarly for Biannual De-worming the children aged from 1 to 19 years 1.99 crores
Albendazole tablets were distributed as against the target of 2.29 crores (87%).

Universal Immunization

Under UIP, Karnataka targets to vaccinate 10.92 lakh children every year with all primary
doses and additional booster doses for children during different ages against 12 vaccine
preventable diseases. In addition nearly 11.93 lakh Pregnant Women are targeted each
year. During 2022-23 (upto Nov 2022) as against the target of 10.92 lakh children were
immunized which constituted to 94% .

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Causes of Death

The major causes of infant deaths are due to prematurity or low birth weight. Pneumonia,
Heart Disease and birth asphyxia also account for a major proportion of deaths. During
2022-23 (upto Nov 2022) 6119 infant deaths were occurred of which 235 deaths are
occurred due to Pneumonia, 38 Diarrhea, 1000 Neonatal infections (Sepsis) (0-1 month)
and 1456 Birth asphyxia and birth trauma (0-1 month) respectively. The remaining 3390
deaths were due to other causes.

Among females in the age group of 15-49, Hypertensive disorders in pregnancy (Includes
eclampsia, pre-eclampsia, hypertension) and Hemorrhage are the leading causes
of death. The total maternal deaths occurred in 2022-23 (upto Nov 2022) were 482 of
which death occurred due to Hypertensive disorders in pregnancy 76, Post-Partum
Hemorrhage 72, Obstructed labour 16, Abortion 3, Sepsis 7 and Other remaining deaths
are due to other causes including high fever are 308.

NCD and RCH were prioritized in the report as SDG 3 goal is to reduce the global maternal
mortality ratio to less than 70 per 100000 live births and reduce by one third premature
mortality from NCDs through prevention and treatment and promote mental health
and well-being by 2030.

Table 11.5 : Top five cause of death due to Non - Communicable disease

Deaths per 1000 population in 2021

Cause of Death
(as per eJanMa)
Heart Attack and Heart Disease 8.93

Asthma and Bronchitis 1.66

Cancer 1.43

Diabetes Mellitus 1.18

Renal Failure 0.51

Screening tests for cancer

The percentage of women in the age group of 15-49 years under gone screening tests for
cancer. 1% for cancer of the cervix, 0.2% for breast cancer and 0.4% for the cancer of the
oralcavity.

Mental Helath

District Mental Health Programme (DMHP) is implemented in all the 31 districts

including BBMP. Under this programme,73392 persons which included Medical Officers,
Paramedical workers, Teachers, Police/Prisons staff, ANMs, Health Assistants , Community
Health Workers, Panchayath Raj Officials were trained in 2021-22. During the current year
(upto Nov 2022), 32918 above persons were trained under mental health programme.

During the current year (upto Nov 2022) clinical services are provided to 29380 persons
of which 5196 are from urban slums. Totally 4322 awareness programmes are conducted

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through IEC activities of which 3017 programmes are conducted on World Mental
Health Day with 33554 participants, 690 programmes regarding prevention of Suicide
are conducted with 13608 participants, 575 programmes are conducted against Drug
Abuse and Illicit Trafficking observation and 40 programmes are conducted with 6260
participants on schizophrenia.

Community Mental Health Day care center Programme (Manasadhara)

This programme consists of Tele-Counselling, “Manochaitanya” - Mental Health

Programme (Super Tuesday clinic), Karnataka State Mental Health Authority (Mental
Health Care Act 2017), under this authority Innovations are Artificial intelligence &
Data analytics to enhance mental health care services, Karnataka Mental Healthcare
Management System (KMHMS) or e-Manas, KSHEMA- Karnataka State Holistic
Empowering-programme for Mental Ailments, Care at Door-Step (CAD), Tele-mentoring,
Matru Chaitanya - This program will ensure that ‘health rupees’ spent on physical and
mental healthcare of mothers and provide optimal environments for every mother–
infant dyad and National Tele Mental Health Program (TELE MANAS) - Tele mental health
assistance and networking across States aims at providing services to those who are
in distress, exam stress, familial problems. They can seek help by calling to the toll free
number 14416 or 1800-89-1446. In Karnataka Tele Manas cell is established in 2 location
one cell at NIMHANS, Bengaluru & another one at DIMHANS, Dharwad.

E-Hospital Programme

State government is implementing the e-Hospital programme in phased manner. Under

NHM, at present upto 10 modules are being implemented, in 1st phase 47 hospitals (20
District Hospitals and 3 District level Hospitals, 24 Taluk Hospitals). In phase II, 123 THs, 27
CHCs, 217 PHCs and 5 MCHs have started implementing e-hospital application by using
existing ICT equipment.

Quality Assurance Programme

Quality Assurance division under National Health Mission is enabling for maintenance of
quality related aspects of all the public health care facilities in the state. Quality Assurance
Programs are Kayakalpa, Swach Swasth Sarvatra (SSS), National Quality Assurance
Program (NQAP), MeraAspataal (MA), Biomedical Waste Management (BMWM), Patient
Safety, Infection Prevention & Control (IPC).

Karnataka State Aids Prevention Society (KSAPS)

During 2022-23 (upto Nov 2022) 8814 HIV positive cases are identified from general clients
as against 21.62 lakhs tested (0.40%). Similarly out of 9.62 lakhs ANCs tested 394 cases
are found positive which constitute 0.04%. During this period 53 free houses are provided
under Rajeev Gandhi Housing Corporation, 362 female sex workers will be provided loan
amount with subsidy at the low rate of interest under Chethana scheme and 107 HIV
positive women will be given loan amount with subsidy at the low rate of interest under
Dhanashree Yojana. An amount of Rs.23000/- scholarship and free education is provided
to the children of 60 HIV infected persons to continue higher education.

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Blood Safety

To provide adequate and safe blood and blood products at reasonable rates at present
260 registered blood banks in the state of which 43 are government, 209 private and 8
are IRCS blood banks.

Department of Ayush

Department of AYUSH has the broad mandate of providing Ayush services, regulating
Ayush education and drug enforcement in the state. 726 Government Ayush Dispensaries,
168 Government Ayush hospitals are providing medical services through Ayurveda,
Unani, Homoeopathy, Nature Cure & Yoga with a total bed strength of 2756. During the
year 2023-24 it is proposed to commence 50 bedded Government Ayush Composite
Hospitals at Yadgir and Chitradurga districts.

During 2022-23 (upto Nov 2022) 31.70 lakhs outpatients and 1.34 lakhs inpatients are
availed Ayurveda, Unani, Homoeopathy, Yoga and Naturopathy medical facilities.

Current Status of COVID-19 in Karnataka and Action Taken

At present the Covid 19 situation in the State is stable. Currently, an average of 20-30
cases are reported daily with 0.5% Positivity Rate and 0% Case Fatality Rate, as on 28th
Dec 2022. It is noted that the majority of districts are reporting NIL cases.

Covid Vaccination

oo The vaccination drive is intensified in the State and more than 6,000 Vaccination
centers are functioning on daily basis.
oo Till date a total of 12.04 Crore doses (1st Dose- 5.51 Cr, 2nd Dose: 5.53Cr) are administered
to the eligible beneficiaries, covering 100% of the eligible population.
oo In 15-17 Yrs category, 56 Lakh doses are administered, which amounts to 96% of
target population. The booster dose vaccination sessions are accelerated, in line with
supplies.
CHALLENGES AND WAY FORWARD

oo The state needs more infrastructures particularly in the rural areas with adequate
access to primary, secondary and territory facilities of the 30 districts, many of them
required a large 500 bed multidisciplinary hospital that can cater to the needs of the
community. These high-tech facilities will also attract doctors and medical staff to
work in small towns instead of moving large cities in search of good hospitals.
oo Create more Healthcare centers with adequate access to primary, secondary, and
tertiary facilities to address shortfall of 245 Urban and 209 Primary Healthcare Center’s
in Urban and Rural areas; 5 districts Bengaluru Urban, Belagavi, Mysuru, Vijayapura
and Dharwad account for 51% shortfall.
oo Convert all healthcare delivery institutions to smart healthcare clinics (e.g. telehealth
enabled) & hospitals .

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oo Empower community healthcare workers (e.g., ASHAs, MPHWs & Auxiliary Nurse
Midwives) to deliver higher quality primary care for underserved segments under
remote doctor supervision, enabled by telemedicine platforms, point of care mobile
testing solutions, and digital upskilling platforms available under the ambit of
Ayushman Bharat Digital Mission.
oo Alongside infrastructure capacity, comprehensive enrolment in the Ayushman Bharat
Insurance programme is required, so everyone can access secondary and tertiary care.
Run digital and door to door campaigns to ensure universal enrollment in Ayushman
Bharat to cover the weaker section of the society e.g. Deploying ASHA/AHM workers
for door to door ABHA registration campaigns (Ayushman Bharat Health Account).
oo Boost doctor availability (e.g. incentivizing doctor empanelment and participation
through stipends basis number of consultations) for telemedicine platforms such as
E Sanjeevani.
oo Setup public and private training centers (incentive driven) to match the supply
against the state demand. Nursing and assistant training centers: 6 districts
Bengaluru Urban, Belagavi, Mysuru, Tumkur,Hassan and Mandya contribute to 39.2%
deficit and could be prioritized. Lab technician training centers: 6 districts Bengaluru
Urban, Shimoga ,Mysuru, Tumkur , Hassan and Mandya contribute to 39.1% deficit
and could be prioritized.
oo Public and private medical colleges could set up nurse and allied health professional
paramedical training programs to qualify accredited, high-quality education
for auxiliary healthcare professionals and help address shortage of nurses and
paramedical staff.
oo Develop state of the art hospitals in Bengaluru and other cities like Mangalore,
Manipal etc. to promote Karnataka as a Medical Tourism destination for India and
the world.
oo Develop towns like Mysuru as “World Yoga Destinations” given its popularity with
foreign tourists on the same lines as Varanasi and Rishikesh.
oo Develop financially attractive value propositions to improve PPP like Outcome based
compensation mechanisms e.g. payments based on number of patients, outcomes
delivered etc., mutually agreed tariffs for end users to improve financial viability, PLI
for centers being operated in rural areas.
oo Establish Digital Control Towers to monitor patient statistics, drug and equipment
inventories accounts, and personnel utilization via electronic records maintained by
healthcare facilities, to ensure compliance with SLAs in public private partnerships
for healthcare infrastructure.
oo The district hospitals and primary health centers can be attached to a medical colleges
in the surrounding areas so medical students can rotate through the hospital and
provide the required services.
oo Malaria elimination target set in Karnataka state by 2025.
oo Aim to eliminate measles and rubella by 2023. There is a need to achieve consistent
and desired standards in all districts, if the goal of prevention of measles and rubella
virus transmission in the country is to be achieved.

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oo During the year 2023-24 it is proposed to commence 50 bedded Government Ayush

Composite Hospitals at Yadgir and Chitradurga districts.

oo Prevent Sex detection and selective abortion of female foeticide to increase the sex
ratio.
oo Under NCDs out of 226 Taluks, 94 Talukas, (heart disease), 71 Talukas (Renal Disease),
70 talukas (Asthma) and 67 Talukas (cancer) are identified as aspirant Talukas.
Prioritize the aspirational Talukas to conduct the screening and identify the diseases
at the early stage to reduce deaths due to Non Communicable diseases.
oo 77 Talukas are identified as aspirant talukas (above state average) concerning Maternal
Mortality Rate (MMR). Focus needed on four ANC checkups addressing anemia and
health infrastructure.
oo Operationalization of sub centers, primary health centres for providing 24/7 basic
and comprehensive obstetric care services including labs and medicines.
oo The notification rate of TB cases 135 per 1,00,000 population is to be reduced.
oo To reduce the MMR, locate the pregnant women in her area and register her for ANC
and help them for acquiring mandatory certificates.
oo At present 94% of children in the 9-11 month of age group are fully immunized which
is to be immunized to 100%.

11.2 EDUCATION

Karnataka’s educational system with the aim to appreciate and encourage perseverance
of excellent standards; to identify areas that will benefit from improvement in order to
attain global educational goals; to record the State’s progress towards achieving equitable
quality education in comparison to, and with its immediate southern neighbours, and
India as a whole. Quality Education is adopted as one of the seventeen UN’s Sustainable
Development Goals, and it will play a crucial part in bringing about global peace and
prosperity. The National Education Policy, 2020 introduces extensive changes to education
in order to make the learning process more personalized, meaningful and holistic in
order to give the best possible chances for every child to realize the potential that they
possess in the fields that would be best suited for their strengths and inclinations.

During 2022-23 an amount of Rs.27548.84 crores is provided in the Budget of which

Rs.24717.68 crores is released upto January 2023 for Primary and Secondary Education.
The expenditure incurred is Rs.20207.79 crores. Out of the total allocation productive
allocation is Rs.5557.83 crores and productive expenditure incurred is Rs.3473.69 crores
upto 20th January 2023. Scheme wise progress is mentioned below:

(Rs. in Crores)

Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Director of Pre-University Education 113.86 97.97 90.06
Government PU Colleges 1220.90 1203.35 917.80

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure
GIA to PU Colleges 624.09 616.06 480.49
Govt Presses 72.22 58.96 56.13
Cost of Printing by Other Sources 5.00 2.50 0.61
Maintenance of School Buildings 16.00 6.14 0.98
Maintenance of School Facilities 35.00 30.24 26.92
Reimbursement of fees to Private Schools 357.15 163.71 272.82
under RTE
Non-Govt. Teachers’ Training Institutions 14.13 14.51 10.84
Teachers Training and Orientation 20.58 20.40 16.14
Training Centres
Vidya Vikasa Scheme- Incentive for 338.27 166.87 308.16
Students
Commissioner for Public Instructions- 35.18 33.58 27.31
Bangalore
Director, State Educational Research and 11.83 11.83 7.36
Training
Commissionerate of Public Instructions - 8.84 8.41 7.12
Gulbarga
Commissionerate of Public Instruction - 9.83 9.56 8.12
Dharwad
Karnataka Secondary Education 14.74 14.67 12.42
Examination Board
Unspent SCSP-TSP Amount as per the 0.97 0.97 0.00
SCSP-TSPAct 2013
Maintenance of Secondary School 20.00 14.78 6.77
Building
Kittur Rani Chennamma Residential 5.02 3.77 2.44
School for Girls
Sainik School Bijapur 7.35 5.51 3.94
Sainik School Koodige 7.81 5.86 4.43
Samagra Shikshana Karnataka - Teachers 115.90 114.91 93.21
Education
Bharath Sevadal 1.79 1.60 0.98
Quality Assurance Initiatives 4.00 3.98 3.02
Education Quality Improvement Program 6.01 4.50 3.34
Student Motivation Initiative 5.00 4.62 2.44
Bharath Scouts 3.90 7.40 6.99

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Infrastructure for Primary Schools 333.40 131.26 16.38
Infrastructure for Karnataka Public 135.00 33.75 0.00
Schools
Maintenance and Repair of Toilets 50.00 17.50 9.08
Infrastructure facilities for High Schools 288.34 241.60 26.06
and PU Colleges
Equipment and Furniture for High School 50.00 0.00 0.00
and PU-College
State Programme for Ksheera Bhagya 1291.82 971.15 709.13
(MDM)
Samagra Shikshana Karnataka - Teachers 1734.33 1463.38 1211.03
Salary
Appointment of School Mothers 70.77 68.84 66.70
Salary to Government Primary School 10741.84 10220.50 7762.76
Teachers
Elementary Schools GIA 863.83 863.98 638.02
Block Education Office -salary and non- 235.15 235.62 189.16
salary expenses
Pre - Elementary Schools 1.56 1.55 0.63
Samagra Shikshana - Teachers Salary 6.42 6.53 8.32
GIA to Private High Schools 2321.92 2263.92 2398.69
DDPI Office salary and non-salary 86.42 86.05 91.80
expenses
Financial Assistance and Reimbursement 37.24 27.27 25.01
of Fees (Including Anglo-Indian Students)
and Vidya Vikasa
Gandhi Grameena Gurukula, Hosaritti 1.38 1.26 1.12
Salary to Government High School Staff 3717.25 3513.38 2669.37
Salary to Residential High School Staff 1.17 1.31 0.71
Purchase of Essential Materials to 15.86 6.04 2.39
Government High School
Public Libraries- Direction and 68.26 66.45 51.37
Administration
Mass Education-Preparatory Activities 1.97 1.51 1.56
for Launching State Adult Education
Programme-Strengthening of
Administrative Structure at State Level
Executive Establishment 13.82 14.07 10.01
CSS - New India Literacy Programme 9.87 0.00 0.00
CSS - Mid Day Meal Program (MDM) 959.58 861.79 861.79

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure
CSS - Samagra Shikshana Karnataka 1436.27 992.31 1085.86
Grand Total 27548.84 24717.68 20207.79

Source : Avalokana Report as on 20-1-2023

In the Budget 2022-23 “Rs.900 crore is provided for the development of infrastructure in
the government of Aspirational Talukas”.

11.2.1 LITERACY IN KARNATAKA

Literacy rates in Karnataka and India

Karnataka India Karnataka (Rural) Karnataka (Urban)

Persons 75.36 74.04 68.73 85.78
Males 82.47 82.14 77.61 90.04
Females 68.08 65.46 58.32 77.97
Source: 2011 Census

The literacy rate in the State during 2001 was 66.64 per cent, which increased to 75.36
percent in 2011. The growth of literacy during the 2001–2011 decade shows that Karnataka
has achieved significant progress.

The overall literacy rate, male and female literacy rates in Karnataka are above the national
average. Urban male literacy rate in the State has crossed 90%. However, rural female
literacy rate in the State is yet to cross 60%. The literacy rank of the State was 9th among
16 major States during 2001 and the same position is maintained in 2011. The overall
increase in literacy rate in the State during this decade is 9%.

Status of School Education

During 2022-23, there are 72,645 Schools in the State of which 24,737 Lower Primary,
30,671 Higher Primary and 17,237 High Schools.
Of the total schools, the percentage of education department’s schools is as high as
85.55% in case of lower primary schools and 70.62% in higher primary schools. However,
Education Department’s participation is low in secondary education as only 27.49% of
the high schools are managed by Government. Government schools are mainly located
in rural areas, where as private schools are largely urban based.

Elementary Education
a) Access
There has been significant progress in improving access to schools in the State. The State
has the policy to start a new primary school within one Kilometer in habitations where
the population is more than 100 and child population is more than 10. HPS is provided
within 3 Kilometer radius and High Schools in 5 Kilometer radius. Feeder schools or
transportation facilities are provided in small and sparsely populated habitations. All
habitations with a population of 100 and above now have access to a primary school

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within a distance of one Kilometer. HPS are being upgraded to include class 8, wherever
there are no High Schools within 3 Kilometers. A total of 7817 HPS has been upgraded so
far.

b) Enrolments

i. Enrolment during 2022-23 in primary (class I to V) and in upper primary (class VI

to VIII) stage was 54.56 lakh and 31.97 lakh respectively. It is noted that 85.90% of
children are studying in rural government schools.
ii. Since last years the enrolment has decreased marginally in the class I to V primary
stage. This is due to the decline in the growth rate of population and consequent
decrease in the school going age group. Even though State is making continued
efforts for successful completion of schooling at class V.
iii. Total enrolment in the State in 1 to 10 standards have marginally increased from 103.13
lakh in 2018-19 to 106.23 lakh in 2022-23. Both gender parity and gender equity are
nearing unity in the State. Gender Parity in enrolment at primary and upper primary
is 0.99 and 1.02 in Government + Aided schools.
iv. During the 2022-23, GER and NER for lower primary are 103.73 and 99.16 respectively.
At higher primary stage GER and NER are 102.26 and 87.55 respectively.

c) Drop-out Rates

During 2022-23 Drop-out Rates in Lower Primary and Higher Primary Stages are 0.09%
and 0.49% respectively. In the current year Samagra Shikshana-Karnataka (SSK) had
identified 4,245(6 to 14 years) drop-out children in State. Most of the drop-out children
were in the districts namely Vijayapura, Bidar, Yadgir, Kalaburagi, Koppal, Ballari, Dharwad,
Raichur, Gadag, Haveri, Chikkodi, Chitradurga, Davanagere, Chikkaballapura, Kolar and
Chamarajanagar. The RTE Act specifies that drop-out children should be mainstreamed
in regular schools. Every drop-out-child is expected to be enrolled in a nearby school
and provided Special Training. Progress of the child is periodically assessed on a learning
ladder on the basis of which, the child is admitted to an age-appropriate class.

d) Out of School Children (OOSC)-Strategies

As per RTE Act 2009, it is mandatory to provide free and universal education to all
children aged between 6 and 14 years. In this context, random survey for identifying out
of school children was conducted during December 2021. The department planned for
4,245 children between the age of 6 years and 14 years which includes children identified
in random survey, night survey and migrant children. Among the total 4,245 children
identified, 4,092 children are covered under special enrolment drive for out of school
children through various activities.

e) Steps taken to ensure continuation of mainstreamed children in regular schools

oo School dropout period of children out of school is considered to be 7 days instead of

60 days.
oo To prevent absenteeism of children and to attend schools regularly Education
Coordinator (ECO) is appointed as Attendance Authority. In case absenteeism of

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more than 7 days is found, ECO is supposed to visit the students’ family to persuade
the parents to bring their children to schools and this method is being implemented.
oo Free uniform, text books, mid-day meals plan, ksheera bhagya, vitamin tablets etc.,
are provided to encourage students to attend schools regularly.
oo Scholarships and admissions in hostels are provided to co-ordinate different incentives
given by other departments regarding Child Education.
oo Each school is ordered to maintain the VER (Village Education Register) / WER (Ward
Education Register)
oo Totally 71 Kasturba Gandhi Balika Vidyalaya (KGBV) schools and 86 KKGBV Hostels are
opened in educationally backward blocks so that drop out girl students are admitted
to continue their education on priority basis.
oo Pamphlets are printed in this regard to reach out parents who take admissions for
their children and also action is taken so as to teachers visiting the parents’ homes to
persuade them to send their children to schools.
oo Data on children who have come to mainstream is collected in the Vidya vahini
software.

f) Infrastructure

i) Basic facility under Samagra Shikshana Karnataka

Efforts are made by the State under universalization of Primary Education Scheme to
provide building to school, additional room, aid for repair and maintenance of schools.
Under RTE Act, the State has put sufficient efforts to provide basic facilities like free
admission, sufficient class rooms and separate toilets for boys and girls, playground,
library, compound/fences, drinking water, toilet, kitchens and other facilities. The main
five facilities (Pancha Soulabhya) are Drinking Water, Toilet, Play Ground, Compound
Wall and School Building. Significant progress is achieved by the State in providing
fundamental facilities.

ii) School Buildings and Classrooms

Out of a total of 55,408 elementary schools in the State 42,823 schools belong to the
Department of Education. About 98.86% of schools of the department possess own
buildings. The remaining 1.14% includes those operating in rent free or rented building.
During 2022-23, there were 2,02,627 classrooms (1,88,941 in 2008-09) in elementary schools
indicating an increase of 13,686 classrooms in about 12 years. 74.79% of classrooms are in
good condition. 11.71% classrooms need minor repairs, while 13.50% of classrooms require
major repairs. Out of a total of 17,237 Secondary schools in the State, 4,738 belong to the
DoE. About 98.37% of schools of the Department possess own buildings.

(h) Teachers

In 2022-23 in the State, 1,47,175 teachers (88.45%) are working in the LPSs and HPSs against
the sanctioned vacancies of 1,66,393. Further, in Aided schools at the elementary stage,
14,083 were working against the sanctioned posts of 16,223. It is observed that 80.33%
of the teachers in Government schools at the elementary stage are female teachers.

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Teacher-Pupil ratio is satisfactory in Government schools; the average PTR being 1:25 at
the elementary stage. However, variations are seen across districts, blocks and at school
levels. The State has adopted a policy to rationalize teacher deployment to correct such
imbalances. However, PTR in private aided and unaided schools is comparatively high at
1:55 and 1:31 respectively. The total teachers working in the State including elementary
and high school levels are 3,87,580.

SECONDARY EDUCATION
With significant gains in primary education, the State has set in motion the planning
process for universalization of secondary education to achieve the target of 85% enrolment
in 14-18 age groups in classes 9 to 12. The State is also committed to strengthening the
knowledge base of the society to sustain higher rate of economic growth.

1. Institutions/Enrolment/Teachers
The State has a total of 17,237 secondary schools of which 4,738 schools are run by the
Department of Education, 969 Social welfare and Local Body schools, 3,768 by Aided
managements, 7,569 by Private Un-Aided managements and 193 by others. The
concentration of the secondary schools in the Private Un-Aided sector may be one of
the reasons for the low access of children from marginalized groups to higher education.
51.06 percent of girls are enrolled in Govt. schools and only 45.18 percent of them study
in Private Un-Aided schools.

According to the available data, in the State, total of 1,02,894 teachers are working in
Un-Aided secondary schools out of 1,77,157 teachers. The State has set the goal of making
secondary education of good quality available, accessible and affordable to all children in
the age group of 14 to 16 years.

b) National Skills Qualification Frame work (NSQF)

1. Ministry of Human Resource Development, GOI has introduced the new scheme of
National Skills Qualification Frame work (NSQF) to be implemented under Rashtriya
Madhyamika Shiksha Abhiyan (RMSA) as per the guidelines. The main objective of
this programme is to introduce vocational courses along with the regular courses and
thus enable the students to gain skills and competencies essential to get employed.
This is a continuing programme implemented in 10 different levels starting from
classes 9th to 12th and thereafter up to graduation, post-graduation and Ph.D levels.
2. The students of 9th and 10th Std. who have opted vocational subject under NSQF
are exempted in studying 3rd Language and the students of 11th and 12th Std.
opted vocational subject under NSQF are exempted from studying either one of the
language.
Pre-University Education
In Karnataka, the government has created a separate department to administer
Pre-University Education and has a separate frame work for the appointment of Lecturers,
Principals and other Staff. Pre-University Education is recognized as a separate stage of
education in Karnataka.

The number of students has increased considerably this suggests setting up more
colleges with even better facilities for the welfare of the students. Funds released under

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NABARD-RIDF and Special Development Schemes are being utilized to meet the
infrastructural needs of Pre-Universities. The department has been organizing refresher,
revival programs to increase the efficiency and productiveness of lecturers to get better
results and also focus on the districts where the results of the students are low.

There are 5,715 PU colleges in the State as on 31.12.2022 of which 1,231 are Govt colleges.
The remaining are Aided/Unaided/ Local Body colleges. During academic year, the
strength of 2nd PU student is 6.37 lakhs.

Achievements

oo Note books have been distributed at free of cost to 96,000 Scheduled Castes and
40,000 Scheduled Tribes students studying in First and Second PUC.
oo 2 Principals and 8 Lecturers were awarded Best Principals and Best Lecturers on the
occasion of Teacher’s Day for the year 2022-23.
oo 32 Biology lecturers from 32 districts, one from each district, were given 7 days training
by Karnataka Science and Technology Society.
oo A fee exemption of Rs.456/- per student has been given to girls studying in Government
Pre-University Colleges in the first and second PUC in the current year.

Higher Education

Collegiate Education

The Department of Collegiate Education oversees the administration of 853 degree

colleges of which 430 are Government Colleges & 423 are Private Aided Colleges.

The number of students enrolled in graduation in both government and aided institutions
during 2022-23 are 5.95 lakh. The average strength in each government college is 923
and each aided degree colleges is 686. The Male Female Ratio is 41:59 in favour of girls.
This is a welcoming trend.

During 2022-23 an amount of Rs.5735.43 crores is provided in the Budget of which

Rs.4575.31 crores is released upto January 2023 for Higher Education. The expenditure
incurred is Rs.3596.78 crores. Out of the total allocation productive allocation is Rs.892.26
crores and productive expenditure incurred is Rs.227.96 crores upto 20th January 2023.
Scheme wise progress is as mentioned below:

(Rs. in Crores)

Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Centre for Hindustani Music 0.50 0.50 0.05
Mysore University 171.75 171.75 141.63
Karnataka University-Dharwad 180.96 180.96 147.86
Bangalore University 118.73 118.73 96.38
Gulbarga University 54.33 54.33 41.28

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Mangalore University 86.85 86.85 50.33
Kannada University - Hampi 45.33 45.33 25.05
Kuvempu University - Shimoga 88.81 88.81 65.44
Women's University-Bijapur 16.68 16.68 12.85
Tumkur University 40.46 40.46 31.36
Davanagere University 27.60 27.60 21.97
Vijaynagar University,Bellary 24.38 24.38 17.83
Belagaum University 37.15 37.15 27.39
Janapada University 3.26 3.26 2.19
Bengaluru Central University 7.20 7.20 5.23
Bengaluru North University 4.16 4.16 3.52
Raichur University 1.92 1.92 1.56
Mandya University 1.39 1.39 1.03
Maharani Cluster University 2.43 2.43 1.00
Nrupatunga University 5.15 5.15 4.51
Institute for Social and Economic Change 8.90 8.90 5.68
National Law School 10.00 24.00 35.50
Centre for Multi-disciplinary Research,
4.47 4.47 1.74
Dharwad(CMDR)
Assistance to Sanskrit and Vedic Research
1.80 1.80 0.90
Institutions
Various initiatives for Education
improvement including Acadamy for 16.00 6.00 4.75
Higher Education
Karnataka State Council for Higher
2.00 2.00 1.50
Education
Samskrutha Patashalas 32.54 32.54 24.85
Assistance to Academy of Sanskrit
2.49 2.49 1.74
Research, Melkote
Non-Government Sanskrit Colleges 10.35 10.35 7.94
Sanskrit University 10.49 10.49 8.00
Music University 2.35 2.35 1.67
Director of Collegiate Education 17.50 15.60 14.17
Unspent SCSP-TSP Amount as per the
0.17 0.00 0.00
SCSP-TSPAct 2013
Other Government Colleges 1604.60 1281.06 1207.23
Establishment & Equipment to Student
0.66 0.57 0.41
Hostels

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure
GIA - First Grade College 1041.65 748.51 610.82
GIA to B.Ed Colleges 67.02 59.63 46.06
Government of India National Scholarships 0.10 0.00 0.00
Scholarship to Encourage Bright Students
3.00 0.06 0.00
to Study Science at Degree Level
Exemption from Payment of Full Fees to all
25.00 0.00 0.00
Girl Students
Support for NAC Accredition 1.40 1.05 0.70
Government Sanskrit Colleges 4.47 4.22 3.18
Fine Arts Colleges including Chitrakala
12.23 10.56 8.78
Parishath
First Grade College Buildings 250.00 40.05 34.59
Equipment in Degree Colleges 65.00 0.00 0.00
Director of Technical Education 15.11 18.53 13.08
Junior Technical Schools 5.19 6.30 3.84
GIA to Polytechnics 495.65 371.74 237.61
Government Polytechnics 460.10 562.54 366.52
Scholarship for talented students in
26.00 15.02 11.48
Engineering Colleges and Polytechnics
Expenditure towards paper valuations, TA/
5.53 4.15 3.80
DA and remuneration
S.K.S.J.T. Institute, Bangalore 71.15 86.76 55.13
GIA to Engineering Colleges 159.14 159.14 105.85
Equipment for Engineering Colleges 5.00 0.10 0.00
Construction of Polytechnics 76.49 23.18 20.05
Engineering Colleges 150.21 93.10 29.14
National Cadet Corps 53.93 49.01 31.61
CSS - Rashtriya Ucchatar Shiksha Abhiyana 98.70 0.00 0.00
Grand Total 5735.43 4575.31 3596.78

Source : Avalokana Report as on 20-1-2023

National Education Policy (NEP-2020)

Honorable Prime Minister presented the National Education Policy 2020 on 1st July, 2020
with a view to creating an education system that ensures quality education and builds
an equitable society, in line with their capacity to contribute to the development of our
nation. This policy envisages that the extant 10+2 structure in school education will be
modified with a new pedagogical and curricular restructuring of 5+3+3+4 covering ages
3-18. In the new 5+3+3+4 structure, a strong base of Early Childhood Care and Education

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(ECCE) from age 3 is also included, which is aimed at promoting better overall learning,
development and well-being.
Government of India implemented the National Education Policy in the year 2020,
following which Karnataka Government issued an order to implement the New Education
Policy in Universities and affiliated Colleges under the Department of Higher Education
from the Academic year 2021-22. Complying with this order, National Education
Policy-2020 is being implemented in all Government First Grade Colleges of the State.

Quality and Inclusive Education-Implemention of National Education Policy 2020

oo Promoting vocationalization of education is the urgent requirement. As per National
Education Policy (NEP Clause 4.26): Every student should be imparted vocational
crafts, such as carpentry, electric work, metal work, gardening, pottery making.
Internship opportunities to learn vocational subjects may be made available to
students throughout Grades 6-12, including holiday periods. Vocational courses
through online mode also to be made available. Establish Centres of Excellence/ Skill
Development Centres at all Educational institutions.
oo There are about 75,000 dropout children, it may be useful to transform vocational
education within the school in ways that it focuses of developing skill sets with
knowledge for all students in secondary school posts 9th grade. Collaborate with
NGOs like Labour net & introduce multiple entry and exit options in higher education.
oo Scaling up the model of collaboration with Tata Technologies to upgrade 150 ITIs and
Introducing 23 courses.
oo There are 4,687 high schools, out of them, 2,150 schools do not have ICT Labs. These
to be covered under TALP and other ICT initiatives. To encourage Science education,
establish STEM labs in Girls’ high schools.
oo Provide Toilet facilities in all schools with priority to schools in talukas in Kalaburagi,
Yadgir, Raichur districts. Transport facilities and financial assistance and ensure safe
environment at school to increase the enrolment of girls.
oo Establishment of Special Education Zones in educationally backward talukas with
Vocational Education and Skilling Hub (VESH) in every SEZ.
Higher education to nurture specialization and human capital development is
exceedingly important in the knowledge economy. Karnataka’s GER in Financial Year 20
was 32, with Women’s GER at 32.7, having overtaken men’s at 31.2 for the first time. While
this is 5 points above the all-India average of 27.1, Karnataka is lagging in other southern
states, who are all above 35. Tamil Nadu (51.4) leads and is the only state with GER over
50, followed by Kerala (38.8), Telangana (35.6) and Andhra Pradesh (35.2).

SMART CLASS ROOMS

6,500 class rooms of Government First Grade Colleges, Government Polytechnics and
Government Engineering Colleges are being upgraded into Smart Class Rooms at an
expense of Rs.97.50crores during the academic year 2022-23. Every Smart Class Rooms
will be provided with Projector, White Board, U.P.S and High speed internet facility. Smart
Class Rooms complement the Karnataka LMS initiative and are a great help in improving
the classroom teaching.

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“Initiatives taken to enhance the quality of Government First Grade Colleges in

Karnataka”
oo To improve the quality of Higher Education, the Central Government under the
component-7 (Infrastructure Grants to Colleges) of RUSA, a flagship project under
Ministry of Human Resources Development, Government of India has selected 90
Government First Grade Colleges of our state and grant of Rs 2 crores has been
sanctioned to each of these colleges.
oo Under component-1 of Rashtriya Uchchatar Shiksha Abhiyan (RUSA) (Upgradation
of Autonomous College to Universities), Government College Mandya (Autonomous)
has been selected and a grant of Rs.55 crores has been sanctioned.
oo Under component-2 of RUSA (Creation of Cluster Colleges to University), Maharani
Science College for Women, Bangalore, Maharani Arts, Commerce and Management
College for Women, Bangalore and VHD Central Institute of Home sciences, Bangalore
have been selected as Cluster University and a total grant of Rs.55 crores has been
sanctioned for this project.
oo Under component - 5 of RUSA Government First Grade College, Jewargi has been
selected to transform as a Model college and a grant of Rs.4 crores has been sanctioned
to this college.
oo Under Component-5 of RUSA Phase-2 (new Model Colleges) Raichur and Yadgir
districts (Aspirational Districts) two colleges are allotted Rs 12.00 crore.
oo In Component-6 (Up gradation of existing Degree College to MDC) 3 Government
First Class Colleges have been selected for each college Rs. 4.00 crore has been
earmarked.
oo In component-8 (Enhancing Quality and Excellence in Select Autonomous Colleges)
4 autonomous government first class colleges have been selected for each college
Rs. 5.00 crore has been earmarked.
oo Under Component-9, 21 Govt Frist Grade colleges are selected for a grant of Rs.2.00
crores each.
oo Department of College Education through EDUSAT imparts teaching in Spoken
English, Computer Fundamentals and Life Skills etc. to all the students of 327
Government First Class Colleges at fixed time every day for two hours.
oo Tele-Education: Using the expertise of IIMB Bangalore and its affiliated institutions,
Tele-Education classes are being set up and telecasted in these colleges to improve
English language proficiency for students studying in first degree classes in a total
of 73 government first class colleges including 64 colleges in Hyderabad Karnataka
region and 9 colleges in rest of Karnataka region.

Technical Education
Technical Education across the globe is gaining importance day by day because of the
rapid advancements in science, technology and innovations. Department of Technical
Education is playing a vital role in contributing for the growth of Information Technology
and Industries in Karnataka State by making its products capable of competing across
the globe.

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In 2021-22 there were 528 institutes across the State ranging from Degree to Diploma,
Junior Technical Schools /Colleges. In order to provide the Human Resources and enhance
the teaching efficiency of the staff, the teaching faculties have been deputed to seek
higher education and also improve their skills through short term training programmes.

The process is underway to revise the syllabus of all 33 diploma and 2 post diploma
programs and 4 subjects of Junior Technical Schools which are to be revised to the latest
needs of the industry, skill based and made employment oriented from the year 2022-23.

A new Learning Management System -LMS is being introduced in both Government

Polytechnics and Government Engineering Colleges which encompasses
content development, digital library, online classes, online assessment etc. from the year
2022-23.

All India Survey on Higher Education (AISHE)

The Department of Technical Education is participating in this survey since 2010-11 by
providing the necessary information (through online) to MHRD. The Department of
Technical Education was the first department in the country to complete the 100% survey
work in the inaugural AISHE program. During 2021-22, all technical institutes have filled
the required formats of the survey.

Information and Communication Technology Initiatives-ICTs

ICTs contribute for universal access to education, equity in education, the delivery of
quality learning and teaching, teachers’ professional development and more efficient
education management, governance and administration. Department takes a holistic
and comprehensive approach for promoting ICTs in education in order to address the
challenges in realizing the vision of higher education.

Outcome Based Education System (OBE)

First time in India “Outcome Based Education Curriculum” is introduced in all its 35
diploma programs affiliated to Board of Technical Examinations, Karnataka by conducting
several workshops including industrialists, expert faculty and other stakeholders. One
of the main elements of accreditation process is the formation of curricula based on
OBE, which is based on revised Blooms Taxonomy. The OBE enhances skill development
amongst technologists, improves employability and supports entrepreneurship among
diploma students.

Revamped Curriculum for Polytechnic Diploma Programs

The Department of Technical Education has developed the new C_20 Curriculum that is
focused on job ready workforce and aligned to NSQF as well as international standards.
DTE after extensive consultations with industry, academia, alumni and government,
are implementing a new pathway driven curriculum, which provides opportunities for
students to plan their career paths as they progress through their learning – leading
them to choose from employment, entrepreneurship or higher education.

From the academic year 2020-21, DTE is offering new Diploma programs in emerging
areas like Alternative Energy Technologies, Food Processing and Preservation, Travel &
Tourism, Automation and Robotics, Cloud Computing and Big Data & Cyber Physical
Systems and Security, EE &EVT and Gaming & Animation.

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7 Government Engineering Colleges of the State have been identified to upgrade as

“Karnataka Institute of Technology (KIT)” on IIT pattern.

As announced in the budget speech for the financial year 2022-23 to promote the
highest quality technical teaching-learning and research 7 Government Engineering
Colleges of the State on IIT model “Karnataka Institute of Technology (KIT)” identified for
up gradation.

Implementation of Comprehensive Karnataka Learning Management System

We have implemented the Karnataka LMS, to enable students to learn from anywhere,
anytime. Students are now enrolled into a learning system that helps to assess themselves
continuously and seek corrective action to ensure just in time learning and correction.
Polytechnics are now equipped with Smart classrooms to facilitate digital learning
classrooms. Further, students are provided with tablet PCs to enable online learning.

Integrated Karnataka Learning Management System

For the first time in the country, a student-friendly integrated learning management
system has been implemented to increase the learning ability of students in order to
develop more skills in studying and studying polytechnic, diploma and engineering.
Students are enabled to use a comprehensive learning management system through a
free tab.

Integrated Twinning Program by the Department of Collegiate and Technical

Education in partnership with Montgomery County Community College’s,
Pennsylvania, USA
The department of Collegiate and Technical Education (DCTE), has been working on
revamping of its Diploma Curriculum to align it to global standards to enable both
global learning and employment as envisioned by the Hon’ble Prime Minister of India.
India has the potential to be the global provider of skilled workforce to industry and
Karnataka aspires to be the lead provider of highly skilled workforce. To realise this vision,
the Department of Collegiate and Technical Education has launched its first partnership
for offering an integrated twinning program leading to the award of an Associate Degree
from Montgomery County Community College (MCCC), Pennsylvania, USA. This twinning
program shall be offered at the Sri Jayachamarajendra (Govt.) Polytechnic in Tourism
and Hospitality.

The Tourism and Hospitality Management Program prepares students for the careers in
entry to mid-level leadership positions in convention and visitors bureaus, destination
management companies, restaurants, parks, hotels and resorts, among other businesses.
As the economy recovers from the pandemic, jobs in these fields are expected to be in
great demand globally.

DTE-Bangalore Chamber of Industry and Commerce Partnership

Industry-Academia partnership is key to ensure success of both, as without educated
and skilled manpower industry cannot sustain and without industry nobody will hire the
students in academia.

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Department of Technical Education and the Bangalore Chamber of Commerce and

Industry (BCIC) have signed MoU, which will enable all Polytechnics across Karnataka to
produce job ready students not just as employees but entrepreneurs as well.

Help educate-An initiative by DCTE –MoU with Infosys

The Department of Collegiate and Technical Education (DCTE) is working with industry
to revolutionize education in Karnataka. DCTE has partnered with leading industries
in revamping curriculum, placement, faculty training etc. As a testimony to the power
of Industry academia collaboration in bringing about meaningful social changes in
the Department of Collegiate and Technical Education. The Infosys Ltd Bangalore and
Rotary India have come together to make a difference in the learning of students of
Government Engineering and Polytechnic colleges across Karnataka, most of whom hail
from socio-economically marginalized background.

The key points of the MoU with Infosys are:

oo Utilizing the Infosys Springboard Platform for faculty and student training.

oo Faculty Enablement Program

oo 15,000 de-bonded Computer Donation

Infosys Springboard

Is a new digital learning platform for students to ‘Learn by doing’ and teachers to better
collaborate with learners, the key features are: Digital Platform for Learning, Learning
Contents, Live Classes, Quizzes and Master classes on Digital Technologies, Career
Guidance Programs, Virtual Lab / Playgrounds and Programming Challenges.

Internship Opportunities – Graduate students can apply for Infosys Springboard

Internship opportunities on digital skills to apply their classroom learning on industry
relevant projects and problem-solving exercises.

Convocation in Commemoration of Sri Nalvadi Krishnaraja Wodeyar

In Commemoration of Sri Nalvadi Krishnaraja Wodeyar, the Board of Technical

Examination, Department of Technical Education successfully conducted Convocation
Ceremony for the First time on 02.11.2022 at Vidhana Soudha, Banquet Hall. 106 Medals
and Diploma Certificates were awarded to outstanding students of 36 programs.

Digitalization of Diploma Marks Cards in National Academic Depository (NAD)

To bring Administrative and educational reforms in the field of education, National

Academic Depository (NAD) which is the official body of UGC New Delhi, has set up
Digital Depository of Academic Awards which aims to provide 24x7 online service for
Digital preservation of Academic information held by educational institutions across
India. The Board of Technical Examination Karnataka has uploaded 1,00,10,892 Diploma
marks cards in Digital form in NAD and stands second in the country for uploading
highest number of records.

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Medical Education
In 2022-23, there are 60 Medical Colleges (MBBS degree) in the State which have
a summated intake capacity of 9,895 students. In these, 21 colleges are run by the
Government. The Government’s presence is visible in nominal strength in other system.
Relatively, the turnout of Ayurvedic doctors (GCIM) is quite significant. There are 40
dental colleges in the State which have summated intake capacity of 2,865 students. In
these, 2 dental colleges are run by the Government. 497 Nursing Colleges recognized
by Indian Nursing Council turn out 28,235 Nurses (B.Sc.graduates) in 2022-23. Karnataka
functions as a nursery for nursing services not only for the State but also for other regions
of India, Gulf countries and Europe.
During 2022-23 an amount of Rs.3932.51 crores is provided in the Budget of which
Rs.2932.67 crores is released upto January 2023 for Medical Education. The expenditure
incurred is Rs.2334.37 crores. Out of the total allocation productive allocation is Rs.1373.99
crores and productive expenditure incurred is Rs.649.27 crores upto 20th January 2023.
Scheme wise progress is as mentioned below:
(Rs. in Crores)

Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Directorate of Health and Family Welfare Services
51.91 21.66 20.04
(Medical Branch)
Buildings under Medical Education Department 0.50 0.00 0.00
The National Institute of Mental Health and Neuro
110.82 93.07 78.84
Sciences, Bangalore
Sanjay Gandhi Institute of Trauma & Orthopaedics 40.99 32.91 37.03
Rajiv Gandhi Super Speciality Hospital, Raichur 10.60 8.47 7.49
PMSSY - Super Speciality Hospital 47.90 47.90 27.87
S.D.S Tuberculosis & Rajiv Gandhi Institute of Chest
20.99 15.49 14.50
Diseases
Vijayanagar Institute of Medical Sciences (VIMS)
193.13 144.85 112.55
Bellary
Karnataka Institute of Medical Sciences (KIMS)
223.81 223.81 147.15
Hubli
Kidwai Memorial Institute of Oncology, Bangalore. 197.26 147.94 144.34
Jayadeva Institute of Cardiology 212.68 159.51 150.21
Fee Concession to SC/ST Students Studying in
6.50 3.25 3.24
Private Medical Colleges
Indira Gandhi Institute of Child Health 60.74 45.41 44.64
Nephro Urology Institute 46.49 34.76 31.37
Karnataka Institute of Diabetology 7.25 5.23 3.66
Bangalore Medical College & Research Institute 367.55 367.55 204.38

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Mysore Medical College & Research Institute 219.76 164.82 126.77
Government Dental College & Research Institute,
34.53 25.90 20.19
Bangalore
Karnataka Institute of Mental Health & Neuro
19.50 14.56 12.15
Science - Dharwad
Hassan Medical College 120.34 89.78 78.38
Shimoga Medical College 105.38 112.43 72.91
Mandya Medical College 107.23 80.28 64.88
Bidar Medical College 90.22 89.52 62.24
Belgaum Medical College 100.53 75.40 69.66
Raichur Medical College 88.07 66.05 64.29
Trauma Care Center, Bangalore 13.92 10.44 6.98
Upgradation of Peripheral Cancer Center at
9.80 7.35 5.55
Kalaburagi
Institute of Gastroenterology Sciences 8.61 11.15 7.34
Sri Atal Bihari Vajpayee Medical College and
77.86 72.23 56.51
Research Institute
Medical College at Gadag(Medical Colleges-2013-14) 89.35 64.76 60.67
Medical Colleges at Koppala (Medical
73.78 55.34 54.58
Colleges-2013-14)
Medical Colleges at Karwar(Medical
78.04 57.40 49.07
Colleges-2013-14)
Medical Colleges at Chamarajanagar (Medical
79.02 59.27 53.89
Colleges-2013-14)
Medical Colleges at Madikeri (Medical
70.24 51.55 51.52
Colleges-2013-14)
Medical Colleges at Kalaburagi (Medical
122.99 91.12 86.15
Colleges-2013-14)
Medical College at Haveri 0.38 0.28 0.20
Medical Colleges at Yadgiri 1.17 2.06 1.05
Medical Colleges at Chikkamagalur 2.00 4.28 1.51
Medical Colleges at Chikkaballapura 7.78 14.65 12.07
Towards Corpus Fund for Treatment of Rare
10.00 10.00 0.00
Diseases
Unspent SCSP-TSP Amount as per the SCSP-
3.90 0.00 0.00
TSPAct 2013

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Allocation Total
Scheme Name Release
(BE+SE) Expenditure
Super Speciality Hospital-Bellary 1.00 0.00 0.00
Establishment of Trauma Centre at Mysuru and
10.00 0.00 0.00
Chitradurga
Establishment of Kidwai as State Level Cancer
35.00 15.00 0.00
Centre -Tumkur, Mysuru, Shivamogga and Belagavi
Establishment of Super Speciality Hospital at
Gulbarga, Belgaum and Mysore Government 100.00 59.62 59.62
Medical Colleges
Establishment of Super Speciality Hospitals at
Bengaluru ,Hassan, Chikkamagaluru and North 60.00 45.00 45.00
Bengaluru
Construction of 450-Bed Hospital at Indira Gandhi
10.00 7.50 7.50
Institute of Child Health
Upgradation of DIMHANS-Dharwad Institute 5.00 0.00 0.00
New Medical Colleges at Gadag, Koppala, Karwar,
Chamrajnagar, Madikeri and Kalburgi(New Medical 150.00 71.66 45.85
Colleges2013-14)
Sri Atal Bihari Vajpayee Medical College, Research
16.50 6.30 6.30
Institute and Hospital Building
Institute of Gastroenterology Sciences 1.00 0.00 0.00
Medical Equipment / Civil Works for District
50.00 0.00 0.00
Hospitals and Medical Colleges
CSS - Establishment of Medical College at
100.00 60.00 40.00
Chikkaballapura
CSS - Establishment of New Medical Colleges
attached with District/Referral Hospitals- 135.00 27.57 27.57
CSS(Chikkamagalur,Haveri,Yadgiri)
CSS - Tertiary Care Programmes 5.49 5.47 5.47
CSS - Additional Facilities in Existing Medical
Colleges of BMCRI Bengaluru,MMCRI Mysuru, VIMS 30.00 4.87 4.87
Bellary and KIMS Hubbali
CSS - New Medical Colleges at Mandya, Hassan,
90.00 47.25 46.32
Shivamogga, Raichur, Belguam and Bidar(2006-07)
Grand Total 3932.51 2932.67 2334.37

Source : Avalokana Report as on 20-1-2023

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Post Graduate Institutions & Enrolments in the State

Medical Colleges are permitted to provide Post Graduate Courses in the State. They offer
Degree and Diploma Courses in various specialties. There are several Super Specialties
of which training is imparted in subjects like Cardiology, Cardio Thoracic Surgery, Cardiac
Anesthesia, Neurology, Nephrology, Urology, Surgical Gastro Enterology, Plastic Surgery,
Medical Oncology and Surgical Oncology. There has been a great demand for specialists,
due to which many Medical Graduate of the State who do not get P.G. seats enroll
themselves with the National Board of Examinations and qualify as Diplomate of the
National Board (DNB). Post Graduate Enrollments for different specialization courses are
5,414 for the year 2022-23.

Major achievements of the Department of Medical Education

1. A 450-bed capacity hospital has been opened in Chamarajanagar where patients are
receiving treatment.
2. Steps have been taken to set up 450 bed capacity hospitals in Kodagu & Karwar
Institute of Medical Sciences and construction is in progress.
3. Government Medical Colleges have been set up at Haveri, Yadagiri, Chikkamagaluru
and Chikkaballapur with central participation and are being started from the current
year with a capacity of 150 seats.
4. Steps are being taken to start Post Graduate degrees in Mandya & Hassan Institutes
of Medical Sciences.
5. Actions have been taken to start a new department of Fetal medicine & Neonatology
at Vani Vilasa Hospital, Bangalore and a grant has been released.
6. Administrative approval has been given to set up cancer centers in Mysore, Shimoga
& Tumkur.
7. Administrative approval has been given to construct a 500-bed hospital in 3 phases
at Shri Atal Bihari Vajpayee Medical College & Research Institute, Bangalore.
A trauma care center with human resources will be started in the current year at the
Mysore Institute of Medical Sciences with the objective of providing emergency treatment
to save life in case of accidents.

Mass Education

During 2022-23, 05 literacy programmes are being implemented with the objectives
of providing basic literacy to rural and urban slums illiterates of 15-50 age groups with
priority to woman SC, ST and Minority groups and to increase the literacy rate of the
State. The programme is implemented in the selected Grama Panchayaths of 19 districts
which are backward, more backward and most backward as per Dr. D.M. Nanjundappa’s
Committee Report, with a target of 1.89 lakhs illliterates at a cost of Rs. 622.05 lakhs.

Programs being implemented

oo As per the Hon’ble Chief Minister’s budget announcement programme of 1000 fully
literate Gram Panchayats for the year 2022-23 and 2023-24.
oo Literacy Program run by Link Grant for the year 2022-23.

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oo New India Literacy Program Launched by the Central Government. (Sanctioned from
2022-23 to 2026-27)
The Literacy rate as per 2011 census is 75.36 in the State. 19 districts namely Yadgir,
Raichur, Chamarajnagar, Kalaburagi, Vijayapura, Ballari, Vijayanagar, Koppala, Bagalkote,
Ramanagar, Chikkaballapura, Mandya, Bidar, Mysuru, Belagavi, Chitradurga, Kolar, Gadag
and Tumakuru have less than the State Average. (Map 11.2)

Similarly, the Female Literacy rate as per 2011 census is 68.08 in the State. But it is
less than the State Average in 19 districts which includes all the districts of KK region.
(Map 11.3)

The department of Mass Education has to take initiatives to improve the literacy rate of
these districts on par with the State Average.

Public Library

Karnataka has been the third State in the country to come under Library Act. Under the
Act, a network of about 6,890 libraries has been functioning all over the State. During
lockdown period due to Covid-19 pandemic, Department of Public Libraries has taken
up an ambitious project to modernize the Public libraries with technology and digital
infrastructure to bridge the gaps in access to information. This is a first kind of project in
the country where a state level initiative has been taken to digitize and provide access for
learning in such a large scale. As a result 3,10,79,185 members have registered in Karnataka
Digital Public Library portal and have viewed 22,72,899 e-contents as on 27.12.2022.

Considering the achievement of Karnataka Digital Public Library, on 17-01-2022, WORLD

BOOK OF RECORDS LONDON, has issued a certificate for revolutionary initiatives and
bringing drastic changes in public library system. “e-Sarvajanikagranthalaya” app is
provided for public to view the digital library services through mobile. Links to various
websites are provided in Karnataka Digital Public Library portal. More than 10 Lakhs
e-contents and educational/national/international videos have been uploaded for the
benefit of the public readers.

Department of State Educational Research and Training (DSERT)

The Department of State Educational Research and Training, is the academic wing
of the Department of Public Instruction. It aims at providing academic leadership in
school education as well as improving the quality of education in primary and secondary
schools in the State. It also insures implementation of academic activities as per the
recommendations of National Educational Policy-2020.

1. Pre-Service Teacher Education

Pre-Service Teacher Education section as a unit of DSERT functions with the responsibility
of formulating and managing pre-service teacher education programmes with the
purpose of preparing quality teachers for pre-school and primary school levels. This
section plays a pivotal academic and administrative role in the field of teacher education
through DPSE, D.El.Ed and DPEd courses.

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Training/Refresher Course

Organizing and executing refresher courses and workshops to the Principals and
Lecturers of all Teacher Education Institutions, as and when the curricula of D.P.S.E, D.El.
Ed and D.P.Ed courses are revised or reviewed.

2. Samagra Shikshana Karnataka Primary and Secondary section

Training for primary school teachers based on Guruchetana module Programme. A

Guruchetana program has been devised for government school teachers to facilitate
learning in classes 1 to 8. In this program, training modules are prepared in Kannada,
Hindi, Mathematics, Science, Social Science, Nali Kali. Till now 164 modules have been
created in the Guruchetana program and a total of 1,45,738 in-service teachers of classes
1 to 8 have been given TTMS option based training.

Formation of State Level Focus Group: The State Level Focus Group will be
constituted as the highest committee to oversee the curriculum design of each stage of
5 + 3 + 3 + 4 design in accordance with the Education Policy. A state-level focus group of
8 to 10 members will be created, consisting of renowned resource persons and content
experts.

Secondary stage - There are two subgroups at this stage

oo In the first stage, there will be a separate curriculum revision committee of 10 to 15

members consisting subject experts in maths, science, social science, vocational
education, physical education, specialists in various disciplines for grades 9 and 10
comprising the children of age group 14-16.
oo In the second stage, age group of 16-18 is included covering classes 11 and 12. Presently
35 different subjects are taught at this level. At this stage, a syllabus restructuring
committee comprising of 10 to 15 members will be formed, comprising of the subject
experts of various disciplines.

3. ‘Learning Recovery’ a Special Programme

In order to bridge the learning gap caused by Covid-19, a special initiative called
‘Learning Recovery’ has been implemented for the academic year 2022-23 and declared
the academic year 2022-23 as the Learning Recovery Year. To compensate this learning
loss, learning materials based on learning outcomes have been prepared in 140 titles.
It includes Facilitator’s Manual for teachers and learning sheets for the use of students.
Training was imparted to all government, aided primary and high school teachers and
guest teachers of the State. Awareness workshops have been conducted for all the State
level and field level officers of the department and progress review meetings are being
held at the cluster, block and district levels for effective implementation of the initiative.

4. Sambhrama Shanivara –No Bag Day in Schools

The program intends to nurture positive values within children to build a responsible,
independent, sensitive and happy adult. It is a program to engage children in activities
that develop the spirit of good citizenship. The children are expected to attend schools
without their bags, books or copies.

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English Cell

The government of Karnataka started 1000 KPS English medium schools in the year
2019-20 with an objective to bring professional development among Teachers in English
language and to help teachers to become reflective practitioners. The English language
cell started to strengthen the English Language and English medium teachers.

Programmes of 2022-23 are as detailed below

oo EMTIP 1,2,3 and 4 (6/8/8/8/days) on-going programmes during 2022-23.
oo PDP programmes
oo CELT programmes 30 days programme
oo PGDELT programmes
oo DIEC programmes
oo 14 days Spoken English programme
oo Spoken English MRP Training for KPS School Students

I. Education Technology Section

1. Technology Assisted Learning Programme (TALP)

The Technology Assisted Learning Program is being implemented from 2016-17 with the
objective of improving the teaching learning process in government high schools. The
initiatives of the project include providing teachers with information technology tools,
training in the use of information technology facilities in schools, access to e-content.

DIKSHA Portal: Depending on the class, E-Contents are localized, translated and
uploading to DIKSHA portal with the help of trained teachers. Till today 29,581 E-resources
are provided to use.

2. The program of State Institute of Science: (Inspire Awards-MANAK)

oo This program is an ambitious program of the Department of Science and Technology,

New Delhi. It aims to inculcate a culture of innovation and creative thinking among
the school students to meet the current social needs through science and technology.
oo 78,701 Nominations were submitted to Department of Science and Technology New
Delhi from Karnataka in 2021-22, of which 7,825 students are selected for the award.
DST New Delhi/NIF Gujarat has to organize District/State/National level material
exhibition for these students.
oo Nomination process is completed for the year 2022-23 and total number of
nominations submitted is 80,663.
ATAL TINKERING LAB

A flagship initiative of the Atal Innovation Mission started in the year 2016 with a vision
to ‘Cultivate one Million children in India as Neoteric Innovators’, Atal Innovation Mission

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is establishing Atal Tinkering Laboratories in schools across India. The objective of this
scheme is to foster curiosity, creativity and imagination in young minds and inculcate
skills such as design mindset, computational thinking and adaptive learning.

568 Atal Tinkering Labs have been established in Karnataka till 2022, out of which 283
are at Government High Schools. Nearby schools are mapped to ATL centers to get the
benefits of the Lab.

Printing, Stationery and Publication

The Department of Printing, Stationery and Publications is basically established to

cater to the Printing and Stationery requirements of the State Government offices
namely Governor’s Office, Legislature, Government Secretariat, High Court and Other
Govt. Departments. This Department also undertakes the Printing works and supply of
Stationery to Government of India Departments namely Chief Election Office, Census
Department etc., on chargeable basis.

Major works executed during the year 2022-23

1. Printing and Supply of 15,000 copies of Constitution of India to Social Welfare

Department.
2. Printing of Information Handbook 1,21,000 copies, Training Design 500 copies,
Saakshara Sandesha Handbook 20,000 copies and Odhona Bareyona Work Book
10,000 copies and to State Rural Development and Panchayath Raj Samsthe.

Challenges and Way Forward

oo An analysis of education sector in Karnataka indicates two basic challenges-high

dropout rate and poor quality education. The dropout rate at the secondary level is
high compared to upper primary and primary dropout rate.
oo Promoting vocationalization of education is the urgent requirement. As per National
Education Policy (NEP Clause 4.26): Every student should be imparted vocational
crafts, such as carpentry, electric work, metal work, gardening, pottery making.
Internship opportunities to learn vocational subjects may be made available to
students throughout Grades 6-12, including holiday periods. Vocational courses
through online mode also to be made available. Establish Centres of Excellence/
Skill Development Centres at all Educational institutions.
oo There are about 75,000 dropout children, it may be useful to transform vocational
education within the school in ways that it focuses of developing skill sets with
knowledge for all students in secondary school posts 9th grade. Collaborate with
NGOs like Labour net & introduce multiple entry and exit options in higher education.
oo Scaling up the model of collaboration with Tata Technologies to upgrade 150 ITIs and
Introducing 23 courses.
oo There are 4,687 high schools, out of them, 2150 schools do not have ICT Labs. These
to be covered under TALP and other ICT initiatives. To encourage Science education,
establish STEM labs in Girls’ high schools.

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oo Provide Toilet facilities in all schools with priority to schools in talukas in Kalaburagi,
Yadgir, Raichur districts. Transport facilities and financial assistance and ensure safe
environment at school to increase the enrolment of girls.
oo Establishment of Special Education Zones in educationally backward talukas with
Vocational Education and Skilling Hub (VESH) in every SEZ.
oo Karnataka’s GER (32), is lagging in other southern states, which are all above 35. Tamil
Nadu (51.4) leads and is the only state with GER over 50, followed by Kerala (38.8),
Telangana (35.6) and Andhra Pradesh (35.2) which is to be increased.
oo Out of a total of 55,408 elementary schools in the State 42,823 schools belong to the
Department of Education. About 98.86% of schools of the department possess own
buildings.
oo In Elementary Schools 74.79% of classrooms are in good condition. 11.71% classrooms
need minor repairs, while 13.50% of classrooms require major repairs. Out of a total
of 17,237 Secondary schools in the State, 4,738 belong to the DoE. About 98.37% of
schools of the Department possess own buildings.
oo In 2022-23 in the State, 1,47,175 teachers (88.45%) are working in the LPSs and
HPSs against the sanctioned strength of 1,66,393. Further, in Aided schools at the
elementary stage, 14,083 were working against the sanctioned posts of 16,223.
oo The State Level Focus Group will be constituted as the highest committee to oversee
the curriculum design of each stage of 5 + 3 + 3 + 4 design in accordance with the
Education Policy. A state-level focus group of 8 to 10 members will be created,
consisting of renowned resource persons and content experts.
oo Development of skills - both soft and employable skills - need to be focused on to
give more emphasis on vocational education as per the NEP 2020.
oo To establish Skill & Vocational centers in Secondary schools to reduce secondary
dropouts.
oo With declining numbers in the 18-23 age groups, the state must ensure access to
high-quality education, make it globally competitive, and train a workforce that can
work across multiple industries and districts in Karnataka.
oo The process is underway to revise the syllabus of all 33 diploma and 2 post diploma
programs and 4 subjects of Junior Technical Schools which are to be revised to the
latest needs of the industry, skill based and made employment oriented from the
year 2022-23.
oo The start up and IT industries combined will possibly need 15-20 lakh more skilled
employees over the next 5 years itself and Karnataka must train and position its
young population to capture these opportunities.

11.3 WELFARE OF SCHEDULED CASTES

Background

In its endeavor towards ensuring “faster, sustainable and more inclusive growth”, the
Government of Karnataka has committed itself to improve capabilities and productive
endowments among the economically disadvantaged and socially marginalized sections

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of the State. In this direction, the welfare departments and development corporations of
the State are implementing several multi-faceted and multi-pronged programs for welfare
of SCs, STs, BCs and Minorities and thereby placing them on the path of mainstream
of development. It is necessary to take direct and affirmative action when some social
groups are found lagging in achievements in these key socio-economic outcomes.
Scheduled Castes (SC), Scheduled Tribes (ST) and religious minorities, especially Muslims
lag in several socio-economic parameters compared to the general population. Average
household incomes and some development indicators for various social groups are
summarized below for comparison.

Socio-economic indicators amongst social groups in Karnataka

Indicator SC ST Minority Groups Others Gap

Population 17% 7% Muslim: 12.9% 60.3% -

- Christian: 1.9%
Jain: 0.72%
Other :0.2%
Total: 15.7%
Average household 22800 20000 28500 (Muslim); 48000 Rs.19500
income in Rs. (2011-12) 52500 (Other (Muslims)
minorities) Rs.4500
(Others)

Literacy rates in 2011(%) 65.3 62.1 68.5 (Muslim) 75 6.5 %

The SC population which was 0.86 crores during 2001 census has been increased to
1.05 crores in 2011 census. As per the projected population for the year 2023 the total SC
population is 1.42 crores. Similarly, The ST population which was 0.35 crores during 2001
census has been increased to 0.42 crores in 2011 census and the projected population
for 2023 is 0.57 crores. District wise population of SC/ST as per the census 2001, 2011 and
projected for the year 2023 is given in Appendix 11.2.

The Department of Social Welfare formulates various Programs and Schemes for the
upliftment of Scheduled Castes. The department aims to empower Scheduled Castes
and make sure their constitutional rights are protected. It implements Social, Economic
and Educational Programs and Schemes at State level, District level and Taluk level to
achieve its aims. Scheme wise progress achieved during 2022-23(up to 20th Jan 2023) is
as detailed below:-

Table 11.3.1 : Scheme wise details of Social Welfare Department for the year 2022-23
Rs. in Crores)

Sl. Allocation Rele- Total

Scheme Name
No. (BE+SE) ase Expenditure

1. Director of SC Welfare 13.25 13.64 9.13

2. Research Institute under Dr. B.R. Ambedkar Birth 1.35 1.53 0.92
Centenary Programme

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Sl. Allocation Rele- Total

Scheme Name
No. (BE+SE) ase Expenditure

3. Unspent SCSP-TSP Amount as per the SCSP-TSP 148.87 111.65 111.66

Act 2013
4. Dr. Ambedkar Birthday Celebration 0.03 0.02 0.01
5. Community Irrigation Scheme - Ganga Kalyana 60.00 45.00 45.00
6. Self Employment Scheme 100.00 75.00 75.00
7. Micro Credit to S.Cs through Self Help Women 40.00 30.00 30.00
Groups (SHGs)
8. Karnataka Thanda Development Corporation 100.00 75.00 75.00
9. Karnataka Adi Jambava Development Corporation 100.00 75.00 25.00
10. Welfare Schemes(Bhovi Development Corporation) 95.00 83.75 83.75
11. Karnataka State Safai Karmachari Corporation 25.00 23.75 23.75
12. Coaching & Allied Schemes 7.63 5.87 5.51
13. Maintenance of new 50 Post Matric Hostels 20.00 15.00 25.00
14. Repairs to hostels and Residential Schools(KREIS) 20.00 15.00 15.00
15. Residential School Society 5.00 3.75 2.50
16. Maintenance of Residential Schools (MDRSs) 533.59 427.34 427.34
(KREIS)
17. Karnataka State Safai Karmachari Commission 3.16 2.53 1.73
18. Dr. B.R. Ambedkar Housing Scheme (through 200.00 0.00 0.00
RGHCL)
19. Pradhan Mantri Anusuchit Jaati Abhyuday Yojana- 200.00 0.00 0.00
PM AJAY(SCA for SCSP)
20. Various Development Programme for Schedule 362.00 318.38 252.90
Caste
21. Babu Jagjivan Ram Leather Industries 50.00 43.75 5.17
Development Corporation
22. Unspent SCSP-TSP Amount as per the SCSP- 23.19 17.39 17.39
TSPAct 2013
23. Share Capital to Various Corporations 10.00 7.50 7.50
24. Construction of Hostel and Residential School 570.00 385.00 385.00
Buildings (State Scheme)
25. Various Development Programme for Schedule 320.00 240.00 238.75
Caste
26. Share Capital to Various Corporations 10.00 0.00 0.00
27. Scholarships to Scheduled Caste students 230.01 175.94 175.94
28. Maintenance of Post Matric Government Hostels 160.20 173.11 153.95
29. District SC Office - Administrative Expenses 108.79 103.56 106.75
30. Residential Schools for SCs 26.29 25.28 24.69
31. Assistance to College Students, Other 105.00 103.62 98.34
Concessions & Assistance to Meritorious
Scheduled Caste Students

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Sl. Allocation Rele- Total

Scheme Name
No. (BE+SE) ase Expenditure

32. Grant-in-Aid to Private Hostels 10.50 9.17 4.37

33. Training Centres for Women 0.07 0.00 0.00
34. Maintenance of Pre-matric Hostels 364.61 378.96 256.98
35. Payment of Extra Boarding & Lodging Charges 83.46 83.38 18.51
36. Pre-Matric Scholarship to SC Students(1st to 8th 113.57 108.35 103.76
STD-State Scheme)
37. Nursery-cum-Women Welfare Centres 0.80 0.78 0.33
38. Incentive to SC Law Graduates 11.35 11.27 4.76
39. Residential Schools Transferred From Education 2.88 2.88 1.76
Department
40. Sangolli Rayanna Sainik School , Bailhongal 0.04 0.00 0.00
41. Karnataka State Commission for SCs & STs 2.89 3.10 2.34
42. CSS - Machinery for Enforcement of Untouchability 23.50 22.46 15.91
Offences Act,1955
43. CSS - Eradication of Untouchability 70.00 35.00 35.00
44. CSS - Compensation to SC/ST Victims 15.00 11.25 11.25
45. CSS - Pre-Matric Scholarship to SC Students 120.00 0.00 0.00
46. CSS - Babu Jagajivan Ram Chhatrawas Yojane 20.00 15.00 15.00
47. CSS - Post-Matric Scholarships to SC Studentss 3.10 3.10 3.10
48. CSS - Conducting Seminars and Workshops 2.00 1.00 1.00
49. CSS - Compensation to SC/ST Victims 15.00 5.36 5.36
4507.13 3288.42 2902.11

Source:Avalokana

During the year 2022-23, an amount of Rs.4507.13 crores has been allocated, out of which
Rs.3288.42 crores have been released and expenditure incurred up to end of 20th Jan
2023 is Rs.2902.11crores. Out of the total allocation, the productive allocation is Rs.4110.58
crores of which Rs.2554.21 crores have been incurred as expenditure up to 20th Jan 2023.

Outcome

Achievements of various schemes implemented by the department for the last five years
(2017-18 to 2021-22) are as below:

oo The State has provided Pre-matric Scholarships to 47.58 lakh students,

oo 15.78 lakhs students were provided with Post-matric Scholarships,
oo Prize money was given to 5.33 lakhs meritorious students,
oo Incentives have been given to 250 students studying in foreign universities,
oo Pre-Examination Trainings for various competitive exams have been given to 9443
students,

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oo Compensation given to 12308 SC/ST Atrocity Victims.

oo The department is running 671 post-metric hostels and 1231 pre matric, 68 residential
schools for SC children studying from 1st to 5th standards.
oo 920 residential schools are run by the Karnataka Residential Education Institutions
Society (KREIS) for students from 6th to 10th grade.
oo Providing financial assistance to voluntary organizations for maintenance of 152 pre-
metric grant-in-aid hostels in the State.
The Social Welfare Department is implementing several programmes through various
Nigams and Corporations. During the year 2022-23, achievements of major schemes is
as below: -
oo 1843 persons are benefitted by Self-employment Scheme and I.S.B (Industries
Service and Business) Scheme, 1362 by Ganga Kalyana Scheme and 233 by Micro
Credit Finance Scheme, through Dr. B.R. Ambedkar Development Corporation for
economic upliftment of SC communities
oo 1209 persons are benefitted by Direct Loan Scheme and 550 by Micro Credit Scheme
under Karnataka Adijambava Development Corporation
oo 3395 Banjara thandas have been provided basic infrastructure facilities through
Karnataka Thanda Development Corporation
oo 4083 persons have been trained through Training Programs, 62 persons benefitted
by Infrastructure Development Programs which are implemented by Dr. Babu
Jagjivan Ram Leather Industries Development Corporation formed for the overall
development of Leather Industry in Karnataka and upliftment of Socio-Economic
conditions of the Schedule Caste Leather Artisans.

Scheduled Caste Sub Plan (SCSP)

During the year 2022-23, an amount of Rs.22917.81 crores have been allocated under SCSP
for various departments, out of which an amount of Rs.12159.25 crores have been spent
up to the end of January 2023 by different departments.

Initiatives taken by the Department of Social Welfare

As per the wishes of the Constitution of India, many important programs of the government
for the education, employment and empowerment of the Scheduled Caste community
are being approved by the department. Reservation in education and employment for
Scheduled Caste community has been increased from 15% to 17% to enable them to get
more opportunities.

oo About 5090 Scheduled Caste Graduate students are trained for various competitive
examinations to get employment in Central/State Government Departments.

oo In various corporations of SCs, while implementing self –employment beneficiary

Schemes 25% is reserved for women while finalising the beneficiary list.

oo The subsidy given by the corporation for construction of houses for scheduled caste
communities has been increased from Rs.1,75,000 to Rs.2,00,000.

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oo 70 Scheduled Caste students have been assigned for studying in foreign universities
in the current year under the Prabuddha Scheme.

oo Rs.20.00 crores have been allocated to identify and develop 10 places visited by Bharat
Ratna Dr. B.R Ambedkar to Karnataka.
oo Around 3474 followers of Dr. B.R Ambedkar were sent to Deeksha Bhoomi, Nagpur,
Maharashtra and their travel expenses were borne by the Department.
oo To provide good quality food in post-metric hostels, the existing monthly food charges
of Rs.1600/- is increased to Rs.1750/-.
oo Under Dr. Babu Jagjivanaram Tricycle Carriage Vehicle scheme, unemployed youth
belonging to SC can purchase a two-wheeler (electric/other) to deliver food and other
items to consumers, at Rs.50,000 Subsidy and financial assistance of Rs.25,000 as
loan amount.
oo During the current year, it is aimed to impart entrepreneurship training through
the institute of Indian Institute of Management (IIM), Bangalore to Scheduled Caste
women.
oo Training is being provided to mountaineering course and orientation course at
Himachal Pradesh for 92 Scheduled Caste hostellers of Social Welfare Department.
oo The findings and recommendations of the analysis report submitted by CODR on
‘SDG 10- Reduced Inequalities-Addressing Socio-Economic Disparities in Karnataka’
are mentioned below: -

Findings

oo The HDI score obtained by SC is 0.49, while the overall HDI score for Karnataka is 0.57.
oo All social groups-SC, ST and Minorities have shown comparably low access to improved
drinking water, while the overall State average stands at 94%.
oo The SC population have shown the lowest average estimate (96%) in having access to
electricity while the overall State average stands at 99.22%.
oo Districts- Yadgir, Gadag and Bagalkot have shown poor performance for all population
groups, including SC, ST and Minorities.
oo The Talukas of Bengaluru South, Bengaluru East, Mysuru, Kalaburgi, and Davanagere
have a significant concentration of SC population, however, they score below the
State average on the Human Development Index for SC, suggesting that these are
critical regions.
oo The State denoted inequality in land distribution among the socially backward
groups. About 7% (569409) of the SC have marginal land of the total land holding in
Karnataka, while only 0.03 % (2798) of the SC have large agricultural land. In the case
of ST, 3% (268258) are marginal agricultural landholders, while 0.03 % (3020) are large
agricultural landholders.

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WAY FORWARD
oo While the overall HDI score for Karnataka is 0.57, however, STs are far behind in HDI
(0.44) compared to SC (0.49) and Minorities (0.46). Hence change the Allocation
pattern under SCP/TSP & PM 15-point programme with more allocation for human
development sectors.
oo Focus on Bidar Taluka where SC & ST dropout is high at secondary education level.
oo SCSP/TSP allocation to focus on over 100 Talukas, which have shown poor performance
in human development parameters. To name a few- Vijayapura, Kundgol, Yadgir,
Koppa.
oo The SC & ST households without houses should be covered under Dr. B R Ambedkar
Vasati Yojane, PMAY and other housing schemes. All the Talukas in Bengaluru Urban
District, Talukas in Bellari, Chitradurga, need focused attention.
oo Promote women entrepreneurship in SC/ST Women, 25 percent of the target under
self-employment under various corporations and infrastructure in Industrial areas/
parks to be reserved for women.
oo Promote women collectives and SC/ST minority women participation in SHG groups.
oo Enable establishment of enterprises, entrepreneurship training to be provided in
the prestigious I.I.M. Bengaluru to minimum 250-300 women graduates of schedule
caste and schedule tribe & Minorities.
oo Encourage integrated farming system among the SC and ST population, especially
those who are marginal agricultural landowners to achieve maximum returns and
income from different integrated components, thereby improving their standard of
living.
oo Conduct an impact assessment on the SCSP-TSP fund allocation to understand the
level of achievement and measure the effectiveness of the programmes to further
strengthen the coverage.
Some of the major recommendations of studies conducted by Karnataka Evaluation
Authority for the upliftment of SC/STs are as below:

Sl.No. Study Title Major Recommendations

1 Evaluation of the oo The SC/ST colony infrastructural facilities scheme in its
Performance of SC/ST current form can be linked to other schemes like Rural Water
Colony Infrastructural Supply Scheme and Grants for Urban Water Supply Scheme
Facilities Scheme under the for providing drinking water; Namma Grama Namma Raste
SCSA/TSA for the period of Scheme (NGNRY) for laying roads; Trainings and courses-
2014-2015, 2015-2016 and Mountaineering, Pilot license, fitness training and Skill
2016-2017 Development Training under Skill Development Mission-
community halls or Samudaya bhavans could be used
for training purposes; and Development of SC/ST colonies
scheme for overall development of the colonies.
oo A detailed five-year action plan must be prepared to
implement the schemes under the SCSP/TSP
oo The performance of the SC/ST colony infrastructural facilities
scheme will be more effective if there is a robust strategy to
enable interdepartmental convergence to identify, implement
and evaluate the schemes and its impact on the beneficiaries.

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Sl.No. Study Title Major Recommendations

2 Evaluation of Forestry Works oo The department should provide another 25% subsidy for LPG
under Special Component connection to all SC/ST families residing within a radius of 5
Plan (SCP) and Tribal Sub kms from the edge of the forests.
Plan (TSP) for the period oo The department must ensure that all the beneficiaries
2013-14 to 2016-17 provided with beehive boxes are properly trained, proper
boxes and bee colonies from known source be supplied.
3 Evaluation of National Discussion with implementing officers revealed that the physical
Horticulture Mission 2015- 16 and financial targets for SC/ST beneficiaries are not met, as
to 2018-19 many of them do not own land. This results in exclusion of these
marginal classes from availing the benefits under MIDH. Under
such circumstances SC/ST farmers may be allowed to avail benefit
if they provide proof of land on registered lease for at least a period
of 3 years.

Challenges faced by the department and future prospects

oo A large number of applications are being received for the various programs/schemes
implemented for the welfare of scheduled caste are being processed and to be
finalized in the respective financial year.

11.4 WELFARE OF SCHEDULED TRIBES

Background
In order to improve productive endowments and exchange entitlements among the ST
households, the State Government has been implementing various programmes in social
and economic domains. It has been attempted through a) Department of Scheduled
Tribes Welfare and b) Karnataka Maharishi Valmiki Scheduled Tribes Development
Corporation. Scheme wise progress achieved during 2022-23(up to 20th Jan 2023) is as
detailed below: -

Table 11.4.1 : Scheme wise details of Tribal Welfare Department for the year 2022-23
(Rs. in Crores)

Sl. Allocation Total

Scheme Name Release
No. (BE+SE) Expenditure

1 Directorate of STs Welfare 5.17 5.56 3.02

2 Research and Training 2.75 3.50 2.11

Unspent SCSP-TSP Amount as per the

3 84.24 99.24 65.05
SCSP-TSPAct 2013

4 Ganga Kalyana - for Schedule Tribe 65.00 60.00 60.00

5 Self Employment Scheme 70.00 65.00 15.00

Micro Credit to S.Ts through Self Help

6 50.00 42.50 42.50
Women Groups (SHG)

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Sl. Allocation Total

Scheme Name Release
No. (BE+SE) Expenditure

Coaching & Allied Schemes for ST

7 5.00 5.00 5.00
Students

8 Upgradation of Merit of ST Students 15.00 18.69 11.87

Morarji Desai Residential Schools

9 (MDRSs) and Maintenance of Kittur Rani 146.40 146.40 110.90
Chenamma Residential School(KREIS)
Housing Scheme of Karnataka Maharshi
10 Valmiki ST Development Corp Ltd. 100.00 75.00 75.00
(through RGHCL)
Schemes Under Article 275(1) of The
11 50.00 10.18 6.89
Constitution
Special Central Assistance For Tribal Sub
12 50.00 30.77 30.77
Plan
Various Development Schemes for
13 214.00 218.66 197.20
Scheduled Tribes
Unspent SCSP-TSP Amount as per the
14 2.10 2.10 1.57
SCSP-TSPAct 2013
Construction of Ashram Schools &
15 3.00 3.00 2.25
Hostels(State Scheme)
16 Construction of Residential Schools 275.00 248.00 206.25
Various Development Schemes for
17 50.00 50.00 45.00
Scheduled Tribes
18 Maintenance of Hostels for ST Students 44.27 44.25 42.19
19 Maintenance of Aashram Schools 36.95 36.63 38.37
Hostels Scholarships and Financial
20 107.34 103.38 103.06
Assistance

Maintenance of Post Metric Government

21 4.31 2.52 1.75
Hostel Buildings

22 Tribal Area Sub-plan 5.07 5.46 5.48

Executive Establishment - District Tribal
23 12.78 13.10 11.89
Welfare Office
24 Grant-in-Aid to Private Hostels 1.55 1.75 0.18
25 Women Wel-fare Centres 0.04 0.04 0.04
Scheme for Development of Scheduled
26 53.82 51.73 27.67
Tribes - Pre Matric Scholarship
Infrastructure Development in Scheduled
27 0.85 0.85 0.36
Tribe Colonies

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Sl. Allocation Total

Scheme Name Release
No. (BE+SE) Expenditure
Payment of Extra Boarding & Lodging
28 28.80 28.00 15.94
Charges to Post Metric Students
Maintenance of Pre Metric Government
29 1.13 1.10 0.21
Hostel Buildings
30 CSS - Hostel and School Construction 3.00 3.00 3.00
CSS - Post-Matric Scholarships to ST
31 151.25 49.56 49.56
Students
CSS - Pre-Matric Scholarship to ST
32 20.34 4.33 4.33
Students
CSS - Development of Particularly
33 25.00 0.00 0.00
Vulnerable Tribal Groups
Total 1684.16 1429.30 1184.41

Source:Avalokana

During the year 2022-23, an amount of Rs.1684.16 crores have been allocated, out of which
Rs.1429.30 crores have been released and expenditure incurred up to end of December
2022 is Rs. 1184.41 crores. Out of the total allocation, the productive allocation is Rs.1616.09
crores of which Rs.1118.87 crores have been incurred up to 20th Jan 2023.

Physical Achievements of various schemes implemented by the Tribal Welfare

Department for the last two years (2021-22 to 2022-23(Nov-22)) are as below:

Physical progress of schemes for the years 2021-22 and 2022-23 (upto Nov-22)

Sl. Physical
Scheme Unit
No. progress

1 Admission of Meritorious ST students in Prestigious Schools Students 6900

2 Pre-matric Scholarship Students 714881
3 Post-matric Scholarship Students 239138
4 Provision of cash incentive Students 68256
5 Prize Money to Meritorious Students Students 466638
6 Construction of residential schools Schools 25
7 Construction of hostels and residential schools Hostels 6
8 Maintenance of Moraji Desai Residential Schools Schools 144
9 Construction of Valmiki Bhavans Bhavans 318
10 Nutrition program for Aboriginals Families 43171
11 Prabuddha Scheme Students 72
12 Grant for Admission in National Institution Students 45
13 Prize Money Students 185

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The department is implementing various developmental schemes for the economic

development of Scheduled Tribes households through Karnataka Maharshi Valmiki
Scheduled Tribes Development Corporation. During the year 2022-23(up to the end
of Nov-22) 108 persons are benefitted under Self-Employment Scheme, 770 under
Industriers, Service and Business scheme, 280 under Micro Credit Scheme, 337 under
Land Purchase Scheme, 1594 under Ganga Kalyana Scheme.

Reservation in education and employment for Scheduled Tribe community has been
increased from 3% to 7% to enable them to get more opportunities.

Tribal Sub Plan

During the year 2022-23, an amount of Rs.9358.20 crores (including Supplementary

Estimation and Opening Balance) have been allocated under TSP for various departments,
out of which an amount of Rs.4979.36crores have been spent up to the end of January
2023 by different departments.

11.5 WELFARE OF BACKWARD CLASSES

Background

The Backward Classes (BCs) constitute major chunk of population who are also deprived
of educational and economic advancement in the state. Therefore, the Department
of Backward Classes Welfare and the D. Devaraj Urs Backward Classes Development
Corporation (DBCDC) have been implementing various developmental programmes
for socio-economic welfare of the Backward Classes in the state. Scheme wise progress
achieved during 2022-23(up to 20th Jan 2023) is as detailed below:-

Table 11.5.1 : Scheme wise details of Programs of Backward Classes Welfare Department
for the year 2022-23 (Rs. in crores)

Sl. Allocation Rele- Total

Scheme Name
No. (BE+SE) ase Expenditure
1. Karnataka Veerashaiva-Lingayata Development 100.01 100.00 0.00
Corporation
2. Karnataka Vokkaliga Community Development 105.00 105.00 105.00
Corporation
3. Director of Backward Classes 11.37 6.66 4.84
4. Vividha Samudayagala Abhivridhi 261.26 182.71 0.00
5. Unspent SCSP-TSP Amount as per the SCSP- 0.03 0.02 0.02
TSP Act 2013
6. Nomadic / Semi-Nomadic Tribes Development 3.07 2.85 1.87
Programmes
7. Karnataka Backward Classes Commission 3.12 2.18 1.51
8. D. Devaraja Urs Backward Classes Development 200.00 50.00 0.00
Corporation Limited
9. Vishwakarma Abhivruddhi Nigama 25.00 20.00 5.00

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Sl. Allocation Rele- Total

Scheme Name
No. (BE+SE) ase Expenditure
10. Krantiveera Sangolli Rayanna Kshetra 52.53 80.49 80.49
Abhivrudhi Pradhikara
11. Assistance to Nijasharana Ambigara Chowdaiah 25.00 5.50 0.00
Development Corporation Ltd.
12. Assistance to Karnataka Uppara Development 15.00 11.25 3.75
Corporation Ltd.
13. Devaraj Urs Research Institute and other 1.49 1.23 2.63
Programmes
14. Training, Awareness and Incentives to BC 30.00 11.76 5.17
Students
15. Post-Matric Scholarship to Backward Classes 65.08 48.81 48.81
Students
16. Starting of new Backward Classes Hostels & 124.84 95.83 65.69
Maintenance

17. Starting and Maintenance of New Morarji 207.88 131.38 215.65

Desai Residential Schools for Backward
Classes(KREIS)

18. Backward Classes Welfare Department - Taluka 34.41 30.11 25.50

Office
19. Food and Accomodation Assistance-Vidyasiri 150.00 0.00 0.00

20. Construction of Residential Schools - Navodaya 30.00 37.64 37.64

Pattern

21. Construction of Hostel Buildings 204.00 102.58 38.37

(BCW Department)

22. NABARD works 2019-20 2.00 0.00 0.00

23. Construction of Devraj Urs Bhavan (Taluk Office) 2.00 0.54 1.00

24. Maintenance of Backward Class Hostels 771.91 718.04 754.09

25. Fees Concession to OBCs 400.00 358.10 263.77

26. Executive Establishment 21.05 21.03 21.88

27. Maintenance of Backward Class Hostel 15.00 11.64 4.55
Buildings
28. Ashram Schools 3.83 2.78 2.33
29. Late Sri. Devraj Urs’ Birth Day Celeberations 0.31 0.29 0.31
and Seminar on Fifteen Point Programme
30. Stipend to Advocates 5.61 5.43 4.92
31. Grant-in-aid to Orphanages 7.38 7.01 1.43
32. Backward Class Taluk Extension Offices 16.24 17.27 7.16

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Sl. Allocation Rele- Total

Scheme Name
No. (BE+SE) ase Expenditure
33. Tailoring Training Centres 0.55 0.53 0.06
34. CSS - Construction of Hostels for OBC Students 7.50 0.00 0.00
35. CSS - Pre-Matric Scholarship to Backward 40.00 9.38 6.25
Classes Students
TOTAL 2942.47 2178.04 1709.69

Source: Avalokana

During the year 2022-23, an amount of Rs.2942.47 crores has been allocated, out of which
Rs. 2178.04 crores have been released and expenditure incurred up to end of December
2022 is Rs. 1709.69 crores. Out of the total allocation, the productive allocation is Rs.2141.01
crores of which Rs.1200.60 have been incurred as expenditure up to 20th Jan 2023.

Achievements

During the year 2022-23(up to Nov-22), 39865 students are benefitted by 133 Moraji Desai
Residential Schools, 960 students by 16 Ashrama Schools, 175316 students by Pre-matric
& Post-matric Hostels and 1068 Law Graduates have been given stipend for 4 years
training under a Senior Advocate/ Government Pleader.

11.6 WELFARE OF MINORITIES

In order to promote and uplift Minority Communities like Muslims, Christians, Jains,
Sikhs, Buddhist and Parsis on par with other Communities, the following developmental
schemes are being implemented by Directorate of Minorities. Scheme wise progress
achieved during 2022-23(up to 20th Jan 2023) is as detailed below:-

Table 11.6.1: Scheme wise details of Minorities Welfare Department for the year 2022-23
(Rs. in crores)

Sl. Allocation Total

Scheme Name Release
No. (BE+SE) Expenditure

1. Karnataka State Wakf Board 20.24 15.18 6.67

2. Protection of Wakf Property in Karnataka State 12.00 9.00 4.46

3. Improving Infrastructure at Minority Piligrimge 2.00 1.50 1.13

Places

4. Remunerations to Pesh Imams & Mouzan of 55.00 41.25 15.66

Wakf Institutions

5. Director of Minorities 16.71 12.53 10.32

6. Minorities Development Corporation 90.00 80.00 30.00

7. Development of Christian Community 50.00 18.14 18.60

8. Development of Jain, Buddist and Sikh 35.00 10.82 9.00

Community

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Sl. Allocation Total

Scheme Name Release
No. (BE+SE) Expenditure

9. Annual allowance and Tasdik to Minority 4.17 3.13 0.00

Religious Institutions

10. Development Programme for Various 12.00 6.78 6.50

Communities

11. Teaching and Learning Aid to Govt. Minority 5.00 3.58 2.70
Schools

12. Incentive for Minority Students 8.00 4.30 2.61

13. Scholarship for Minorities and Fee 75.00 50.86 48.56

Reimbursement

14. Vidyasiri Scheme for Minority Students 25.00 4.71 0.00

15. Training for Competitive Exams for Minorities 5.00 7.13 2.54

16. Providing Quality Education in Madrasas 8.00 4.80 2.99

(SPQEM)

17. Karnataka Urdu Academy 1.00 0.75 0.75

18. Opening of New Hostels for Minorities and 113.47 103.63 63.23
Maintenance of Moulana Azad Schools/Colleges

19. Minorities Residential Schools 203.27 188.52 154.26

20. Minority Slums/Colony Development Programme 100.00 28.25 3.00

in 11 Corporations

21. Karnataka Minorities Development Corporation 20.00 15.00 15.00

22. Construction of Hostel and Residential School 200.00 146.46 117.92

Buildings for Minorities, Minority Office
Complexes, Urdu Convention and Cultural Centre

23. Hostels for Minorities 88.45 85.80 83.60

24. Stipend to Law Graduates of Minorities 0.59 0.57 0.49

25. GIA to Minorities Orphanages 5.03 6.19 2.84

26. Executive Establishment 14.97 15.38 14.05

27. CSS - Pradhan Mantri Jana Vikas Program 400.00 100.04 100.04

Total 1569.90 964.30 716.92

Source: Avalokana

During the year 2022-23, an amount of Rs. 1569.90 crores have been allocated, out of which
Rs. 964.30 crores have been released and expenditure incurred up to end of December
2022 is Rs. 716.92 crores. Out of the total allocation, the productive allocation is Rs.1238.05
crores of which Rs.506.09 crores have been incurred as expenditure up to 20th Jan 2023.

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ARIVU’ (Education loan scheme), Ganga Kalyana Scheme (Community Irrigation Scheme),
Shramashakthi Scheme, Self-Employment Scheme, Subsidy Scheme for Taxi/Goods/
Auto Rikshaw purchase are implemented through Karnataka Minorities Development
Corporation.

The findings and recommendations of the analysis report submitted by CODR on ‘SDG
10- Reduced Inequalities-Addressing Socio-Economic Disparities in Karnataka’ are
mentioned below: -

Findings:

oo The HDI score obtained by Minorities is 0.46, while the overall HDI score for Karnataka
is 0.57.

oo All social groups-SC, ST and Minorities have shown comparably low access to improved
drinking water, while the overall State average stands at 94%.

oo Minorities have shown the highest deprivation in under-5 mortality rates with 52.58
per 1000, which is almost double the overall State average (21.18 per 1000)

oo Across all social groups, education is a matter of concern since the literacy rate of
minorities is comparably lower (less than 50%) than the overall State average which
stands above 70%.

oo Districts- Yadgir, Gadag and Bagalkot have shown poor performance for all population
groups, including SC, ST and Minorities

WAY FORWARD

oo Strengthen the 15-point programme to increase minority literacy rates, improve skill
development, and prepare minorities to reap the benefits of opportunities to build
resilient living.

oo The government should strengthen the post-matric scholarship programme for

minorities. While it has been noted that the Social Welfare Department provides
merit scholarships of up to 25,000/- for SC and ST students. However, the scholarship
provided to minorities is around 10,000/-.

11.7 PROGRAMMES FOR THE EMPOWERMENT OF DIFFERENTLY ABLED & SENIOR

CITIZENS

I. Differently Abled

11.7.1: As per 2011 Census the population of the Differently Abled persons is 13,24,205 which
constitutes 2.16% of the State total population. In order to bring all kinds of Differently
Abled persons to the main stream of the society the Department of Empowerment
of Differently Abled and Senior Citizens has been established in 1988 through which
different schemes are being implemented.

For 2022-23, an amount of Rs. 235.47 Cr. is earmarked in the budget of which of Rs 113.26
Cr. is released upto the end of November 2022. The expenditure incurred is Rs.94.35 Cr

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Schemewise progress details is as shown below :

Rs.in Crore

SI. Allocation Total

Scheme Name Release
No. (BE+SE) Expenditure
1 Social Service Complex-Anupalana 2.09 1.61 1.38
Gruha-Manasa Kendra
2 Directorate for Disabled 3.96 2.84 1.73
3 Deaf and Blind Government Schools 1.28 0.78 0.54
4 Scholarship to the Physically 6.25 0.00 0.00
Handicapped
5 Commissionerate for Persons with 0.96 0.54 0.28
Disability Act - 1995
6 Hostels for Disabled Females 3.09 1.43 1.28
7 Aids and Appliances for the Disabled 17.81 2.81 0.96
8 NPDRP Programme for the Disabled 67.64 38.78 37.21
9 Placement Cell of the Different Abled 0.05 0.00 0.00
10 Welfare of Physically & Mentally 24.41 18.53 14.27
Challenged
11 Senior Citizen Policy 4.11 2.11 1.87
12 Financial Assistance to Special Schools 81.49 24.79 20.98
for Physically Challenaged run by
NGO’s
13 Maintenance of Disabled Department 1.00 0.14 0.00
Buildings
14 Non-Government Institutions for 17.65 16.14 12.04
Physically Handicapped
15 Voluntary Organisation for Care of the 3.68 2.76 1.81
Old Infirm & Diseased
Total 235.47 113.26 94.35

Achievements during 2022-23 (upto the end of November 2022)

oo An amount of Rs 12.04 Cr. financial assistance is provided to 34 GIA schools and
vocational training centers run by the NGO’s under the Financial Assistance to NGO’s
to run GIA 1982 Special schools.
oo Under Sadhane and Prathibe scheme Rs. 50,000/- is provided for the persons with
disabilities who participate in National and International sports events and Rs. 20000/-
for the persons participating in cultural activities. 32 beneficiaries were provided Rs.
0.17 Cr.
oo 144 persons with no disabilities who married Differently Abled men and women were
provided with Rs. 0.72 Cr. of incentives out of Rs. 2.00 Cr. provided in the budget
under incentive scheme.

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oo 25 children are taken care in “Day Care Centers” with an expenditure of Rs.0.18 Cr. out
of 0.50 Cr. earmarked in the budget.
oo 3,58,425 Unique Disability Identity Cards for the disabled (UDID) were issued as
against 6,84,542 applications received.
oo 5090 Braille books are printed at Government Braille Printing Press, Mysore and
supplied to visual impairment students.
oo The Human Development Index for Disabled which was 0.19 in 1999-2000 has been
increased to 0.25 in 2011-12.

II. Senior Citizens

As per 2011 Census, the population of the Senior Citizen is 47.18 lakhs which constitutes
7.72% of the State total population and the Projected population for 2023 is 77.07 lakhs.

Achievements During 2022-23 upto the end of November 2022

To ensure the provisions of high quality of life to Senior Citizens Government has
formulated State Policy for Senior Citizens with an objective,” to protect them by
providing Economic Security, Health Care and against exploitation and ill treatment and
to formulate programme for Senior Citizens living in rural areas to ensure that they also
get the benefits that their counter parts in urban areas”.

oo Rs. 1.81 Cr. financial assistance is provided to NGOs’ to run Old age home. There are 31
Old Age Homes in the state, at the rate of 25 beneficiaries in each home.

oo 140 Senior Citizens are accommodated in 22 Day Care Centers at the district level to
lead healthy and comfortable life during day time with their friends under Day care
center scheme.

oo Out of 18,200 applications received from Senior Citizens, 16,061 ID cards have been
issued.

oo The Human Development Index for elderly persons is increased to 0.56 in 2011-12 from
0.43 in 1999-2000 indicating their better positions.

WAY FORWARD

oo As per 2011 Census, population of differently abled person is 13,24,205 which includes
only 7 types of disabilities as notified. Government of India has notified 21 disabilities
on 19.04.2017. Hence the department has to undertake the periodical survey of
Differently Abled persons, based on 21 types of notified disabilities in all the districts
in co-ordination with the Health and Family Welfare Department to bring each and
every one of them, socially and economically into the main stream of the society.
oo Hostels are to be constructed, to provide subsidized/ free boarding and lodging
facilities for working women & students with Differently Abled in all the district
headquarters.
oo All the persons with mental retardation are to be provided with Rehabilitation centres
in the district headquarters.

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Human Development
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Maternal Adolescent Female & Male Female & Male Female & Male labour
11.8 HUMAN AND GENDER DEVELOPMENT
MortalityR Birth Rate Population with
atleast secondary
shares of force participation
atio parliamentary seats rates
education
Introduction
Female Female
Human Development concept
reproductive
richly contributed
Empowerment
for human
Female labour Male wellbeing.
Empowerment UNDP states
Male labour
market index index
that human development health index approach
index focuses on people, their opportunities and choices.
market index

Hence human development emphasizes mainly on health, education and standard of

living (Fig 11.8.1). It also includes other dimensions like gender, child, poverty, food security,
region, religion, caste, ecology and Femaleenvironment
Gender Index development Male throughout
Gender Index the life cycle
or life span, etc.

Fig 11.8.1 : HDI 3 major indicators measured by UNDP

HDI

Long & Standard of

Knowledge
Healthy Life Living

Gross National
Mean Years of Schooling &
Life Expectancy at Birth Income Percapita
Expected Years of Schooling
(PPP 2011 $)

The efforts to quantify the qualitative results of human development processes has taken
the forms of many such HD-Indices as Human Development Index (HDI), Inequality
Adjusted Human Development Index (IAHDI), Gender Inequality Index (GII), Multi-
dimensional Poverty Index (MPI) etc.

HDI provides a single measure capturing three basic dimensions of human development
viz., health, education and living standards. In HDI, economic welfare is given more
importance than economic growth. It emphasizes that the individual’s capabilities must
be the ultimate criteria for assessing the development of the country.

As per UNDP 2014 HDR report, India ranked 135 among 187 countries with HDI value
of 0.586 belonging to medium development countries. Among the states Kerala had
highest value 0.693, Bihar ranks the lowest with the value being 0.536. Karnataka stands
in 8th position among 20 major states with the value being 0.611.

HUMAN DEVELOPMENT REPORTS IN KARNATAKA – AN OVERVIEW

Karnataka has been a pioneering State in addressing the issues concerned to human
development through various policy initiatives consequent upon the preparation of
human development reports at various levels over the years. The first Karnataka State
Human Development Report (KSHDR) was published in 1999 which helped the State to
realize the existence of sharp socio-economic disparities between districts. The second

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KSHDR brought out in 2005 provided a comprehensive analysis of district human

development goals and outcomes especially for vulnerable sections and also examined
the efficacy of service delivery mechanisms.

The third Karnataka State Human Development Report, 2015 brought out with a specific
theme on “Accelerating Equitable Human Development”. The approach was to assess
inclusiveness of human development across caste, class, gender, regions and social
groups and accelerate the process.

The preparation of Fourth Karnataka State Human Development Report, 2022 – “Bridging
the Gaps towards sustainable wellbeing” is in final stage. The report is being presented
with a specific action-oriented agenda to reach the human development milestones in
Sustainable Development Goals. The effort is to explore the strategies and policies that
help to bridge the gaps and promote sustainable wellbeing at micro level.

HDI AT STATE LEVEL

To understand the relative position of different Indian States and Subsequently districts
of Karnataka in global context, HDI is estimated using international goal posts set by
UNDP for the year 2019 as mentioned below.

The global goalposts set by UNDP

Dimension Indicator Minimum Maximum

Health Life Expectancy (years) 20 85
Education Expected years of schooling 0 18
Mean years of schooling 0 15
Standard of living Gross national Income per capita 100 75000
(2017 PPP$)

Source: UNDP, Karnataka Human Development Report-2022(Provisional).

Karnataka’s performance in human development has been improving over the years in
terms of HDI value.

HDI at District Level

For computation of Human Development Index for district level, indicators namely: Life
expectancy at birth, Mean years of schooling, Expected years of schooling and Gross
national income percapita set by UNDP is used.
Karnataka Human Development Index for the year 1999, 2007-08, 2015 and 2022 are as
mentioned below.

Year Index Rank among States

1999 0.432 10
2007-08 0.519 10
2015 0.611 8
2022 0.644 11

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Karnataka is in medium Human Development range (0.550-0.699) and rank is more or

less stable between 10 & 11, but the index has improved significantly from 0.432 to 0.644.
It implies that, the state’s achievement in human development has increased from 43%
to 64.4%. It is well above the national average in all the years.

Human Development Index-2022 across the districts of Karnataka is furnished below.

Health Education Income

Districts HDI Rank
Index Index Index
Bengaluru Urban 0.770 0.678 0.770 0.738 1
Dakshina Kannada 0.757 0.595 0.720 0.687 2
Chikkamagaluru 0.770 0.576 0.672 0.668 3
Udupi 0.760 0.566 0.684 0.665 4
Kodagu 0.768 0.619 0.616 0.664 5
Mandya 0.764 0.575 0.607 0.644 6
Bengaluru Rural 0.762 0.557 0.625 0.643 7
Ramanagar 0.761 0.565 0.615 0.642 8
Kolar 0.771 0.599 0.567 0.640 9
Shimoga 0.755 0.547 0.623 0.636 10
Uttara Kannada 0.775 0.556 0.586 0.632 11
Bagalkot 0.774 0.542 0.594 0.629 12
Chikkaballapur 0.768 0.577 0.558 0.628 13
Mysore 0.759 0.557 0.577 0.625 14
Hassan 0.769 0.528 0.598 0.624 15
Gadag 0.767 0.563 0.559 0.623 16
Tumkur 0.759 0.506 0.606 0.615 17
Bellary 0.730 0.523 0.601 0.612 18
Dharwad 0.708 0.533 0.601 0.610 19
Belgaum 0.751 0.546 0.529 0.601 20
Chamarajanagar 0.776 0.488 0.573 0.601 21
Bidar 0.772 0.532 0.527 0.600 22
Vijayapura 0.771 0.524 0.532 0.599 23
Chitradurga 0.757 0.519 0.541 0.597 24
Koppal 0.765 0.520 0.524 0.593 25
Davangere 0.749 0.508 0.538 0.589 26
Haveri 0.762 0.446 0.533 0.566 27

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Health Education Income

Districts HDI Rank
Index Index Index
Raichur 0.742 0.448 0.535 0.562 28
Kalaburagi 0.726 0.420 0.514 0.539 29
Yadgir 0.764 0.382 0.533 0.538 30
Karnataka 0.759 0.555 0.634 0.644

Source: Karnataka Human Development Report -2022 (Provisional).

Bengaluru urban stands highest in terms of Human development achievement at district

level and will be categorised as district with high human development as per UNDP
international comparison. Followed by Dakshina Kannada, Chikkamagaluru, Udupi and
Kodagu are the top 5 districts with higher human development achievements. Yadgir,
Kalaburagi, Raichur, Haveri and Davanagere are the bottom 5 districts with low human
development performance.

District wise HDI value for two periods during 2015 & 2022 is furnished below:

2015 2022 HDI

Sl. Sl.
Districts Districts Rank
No No
HDI Rank HDI Rank 2015 Rank 2022

1 Bagalkot 0.5513 24 0.6290 12 16 Haveri 0.5390 28 0.5660 27

2 Belgaum 0.5794 18 0.6010 20 17 Kalaburagi 0.5342 29 0.5390 29

3 Bellary 0.5446 26 0.6120 18 18 Kodagu 0.6816 2 0.6640 5

4 Bengaluru Rural 0.6484 4 0.6430 7 19 Kolar 0.6266 7 0.6400 9

5 Bengaluru Urban 0.7392 1 0.7380 1 20 Koppal 0.5510 25 0.5930 25

6 Bidar 0.5651 22 0.6000 22 21 Mandya 0.5986 14 0.6440 6

7 Chamarajanagar 0.5683 21 0.6010 20 22 Mysore 0.6204 9 0.6250 14

8 Chikkaballapur 0.6072 13 0.6280 13 23 Raichur 0.5399 27 0.5620 28

9 Chikkamagaluru 0.6360 5 0.6680 3 24 Ramanagar 0.5916 15 0.6420 8

10 Chitradurga 0.5597 23 0.5970 24 25 Shimoga 0.6101 10 0.6360 10

Dakshina
11 0.6636 3 0.6870 2 26 Tumkur 0.5807 17 0.6150 17
Kannada

12 Davangere 0.5827 16 0.5890 26 27 Udupi 0.6313 6 0.6650 4

Uttara
13 Dharwad 0.6235 8 0.6100 19 28 0.6099 11 0.6320 11
Kannada

14 Gadag 0.5715 20 0.6230 16 29 Vijayapura 0.5757 19 0.599 23

15 Hassan 0.6081 12 0.6240 15 30 Yadgir 0.4954 30 0.538 30

Source: KSHDR 2015 and 2022 (Provisional)

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The above table provides the comparision of district wise HDI over two periods 2015 and
2022. All the districts witnessed an improvement in human development except Kodagu,
Dharwad and Bengaluru Rural districts which shows marginal decline in HDI.

HDI at Taluka Level

For computation of Taluka level Human Development Index the following indicators are
used

Standard of living

oo Percentage of HHs having access to modern cooking fuel like LPG, electricity, gas etc
oo Percentage of House Holds having access to toilet within the premises
oo Percentage of House Holds having access to safe drinking water
oo Percentage of House Holds having access to electricity
oo Percentage of House Holds having access to pucca houses
oo Percentage of non-agricultural workers
oo Per Capita Income (GDP) at constant prices
Health

oo Under 5 mortality per 1000 live births

oo MMR (per 1 lakh) live births
oo Number of mothers who had at least 4 antenatal care visits
Education

oo Male Literacy Rate

oo Female Literacy Rate
oo Gross Enrolment Rate (Elementary)
oo Gross Enrolment Rate (Secondary)

The top five HDI taluks are Bengaluru South, Bengaluru East, Bhatkala, Anekal and
Yelahanka, conversly the botom five are Hunisigi, Sedam, Shorapur, Chittapur and
Shahabada.

Engendering Human Development in Karnataka

(A) Gender-wise Population

It is a good sign that Karnataka is inching close towards the ideal state of equal numbers
and ratio with not much significant Female Deprivation / Disadvantage Factor (FDF),
in terms of gender-wise population. As per the Karnataka at a Glance 2019-20 report,
Karnataka state projected population-2021 is 7,19,57,278, male projected population is

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3,64,98,889 and female projected population is 3,54,58,389 with female disadvantage

factor -0.027. Tables from Table 11.8.1 to 11.8.3 clearly exemplify this trend, though the State
is little behind when compared to other major southern states, sex ratio being relatively
low. Further, it can be noted that the sex ratio in urban Karnataka is lower than in the
rural Karnataka, though the trend is slowly changing.

Table 11.8.1: Population in Karnataka, Major Southern States & India

Population 2011 % Share of

State FDF
Total Male Female Female

Karnataka 61095297 30966657 30128640 49.3 -0.028

Andhra Pradesh 84580777 42442146 42138631 49.8 -0.007
Kerala 33406061 16027412 17378649 52.0 0.078
Tamil Nadu 72147030 36137975 36009055 49.9 -0.004
India 1210854977 623270258 587584719 48.5 -0.061

Source: Census of India 2011 Note: Female Deprivation/Disadvantage factor, (FDF)=(F-M)/F, Kerala women
outnumbering to men

Table 11.8.2 : Sex Ratio at Birth - Karnataka & India

Sex Ratio at Birth

State
2012-14 2013-15 2014-16 2016-18 2018-20
Karnataka 950 939 935 924 916
India 906 900 898 899 907

Source: SRS Bulletins

There is a growing concern about the declining Sex Ratio at Birth to 916 in 2020 SRS
report. There is an urgent need to implement the promotional schemes like Beti Bachao
Beti Padhao and Bhagyalaxmi to improve the Sex ratio at birth.

(B) Child sex ratio

Table 11.8.3: Child Sex Ratio - Southern States and India (1971 to 2011)

Census Years

State Diff from Sex Ratio

1971 1981 1991 2001 2011 1971 to change
2011 2001 to 2011
Karnataka 978 975 960 946 948 30 2
Andhra Pradesh 990 992 975 961 939 51 -22
Kerala 976 970 958 960 964 12 4
TamilNadu 974 967 948 942 943 31 1
India 964 962 945 927 919 45 -8

Source: Decadal Census Data - Census of India, 2011

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With reference to child sex ratio, though there is a slight improvement over the last
decade, the concern is that State has a long way to go in attaining the fair gender
equality (Tables 11.8.3). The state is in a relatively better position compared to Tamil Nadu;
However, compared to Kerala, it is lower. Therefore, necessary measures should be taken
to prevent this negative trend.

Gender and Health

Life Expectancy (LE)

Table 11.8.4: Life Expectancy in Karnataka, 2011-15 to 2015-19

Total Male Female

Years Difference
Karnataka India Karnataka India Karnataka India
in years
2011-15 69.0 68.3 0.7 67.2 66.9 70.9 70.0

2012-16 69.1 68.7 0.4 67.6 67.4 70.7 70.2

2013-17 69.2 69.0 0.2 67.7 67.8 70.8 70.4

2014-18 69.4 69.4 0 67.9 68.2 70.9 70.7

2015-19 69.5 69.7 -0.2 67.9 68.4 71.3 71.1

Source: Office of the Registrar General of India, Various Years, Abridged Life Tables

Life Expectancy is one of the key indicators of health. On biological terms, women are
usually expected to have a greater Life Expectancy than men. The same is demonstrated
in case of both Karnataka and India (Table 11.8.4).

11.8.7. Gender and Literacy & Education

(A) Literacy

Table 11.8.5: Gender-wise Literacy in Karnataka (In percentages)

Details 1971 1981 1991 2001 2011

Male 41.62 48.81 67.26 76.29 82.47

Female 20.97 27.71 44.34 57.45 68.08

Difference (F-M) -20.65 -21.10 -22.92 -18.84 -14.39

FDF -0.98 -0.76 -0.52 -0.33 -0.21

Source: Census of various years

The gender disparity with respect to literacy in the State has been gradually decreasing
over the decades reflecting a healthy sign (Table 11.8.5).

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B) Educational Attainment

The gender-wise educational attainment, according to the All India Survey on Higher
Education 2019-20, shows that the female deprivation/ disadvantage factor is high in
Ph.D and Diploma level when compared to Post Graduate and Under Graduate levels is
a matter of genuine concern at both India and Karnataka. (Table 11.8.6).

Table 11.8.6: Gender Distribution across various levels of Education (Regular Mode) in India
and major southern States

Ph. D Post Graduate Under Graduate Diploma

State
M F M F M F M F
Andhra Pradesh 3837 2879 88923 85176 671286 602648 92704 59683
Karnataka 8422 6566 86081 111740 828434 847140 113133 80208
Kerala 2817 4687 21928 69228 287531 410502 41458 30502
Tamil Nadu 15816 14823 101932 180859 1094717 1194788 279043 55406
Telangana 3507 2001 65433 82606 511433 552425 60259 45165
All India 111400 91049 1355452 1835637 13817639 13911801 1681882 870620

Source: AISHE (2019-20)

11.8.8 Gender and Employment

Against gender parity in employment for Karnataka, Tables from 11.8.7 to 11.8.10 present
a mixed trend of both gradual but very slow movement towards gender equality and
also prevailing glaring female deprivation/ disadvantageous situation. This trend is
visible more glaringly even in the high profile employment categories of judges and
bureaucrats. Concerted efforts should, therefore, be effectively carried out to ensure the
removal of gender discrimination at all levels.

Table 11.8.7: Work Participation rate in Karnataka & India

Work Participation Ratio in percent according

to usual status (ps+ss),
State/ age group 15-59 years
Country
2019-20 2020-21
Total Male Female Total Male Female
Karnataka 58.0 80.8 35.3 59.6 81.1 38.5
India 53.9 76.7 30.9 55.3 77.2 33.9

Source: Annual Report, PLFS 2019-20 & 2020-21

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Table 11.8.8: Gender-wise Employment in the organized sector in Karnataka 2016-17 to 2020-21
(In ‘000s)

Year Public Sector Private Sector Total

Total Women Men Total Women Men Total Women Men

2016-17 1040.1 287.0 753.0 1352.1 490.9 861.1 2392.2 778.0 1614.1
(100) (27.6) (72.4) (100) (36.3) (63.7) (100) (32.5) (67.5)

2017-18 1036.5 284.3 752.2 1348.3 491.0 857.3 2384.8 775.3 1609.5
(100) (27.4) (72.5) (100) (36.4) (63.5) (100) (32.5) (67.4)

2018-19 1019.8 268.9 749.9 1363.5 499.7 863.8 2383.4 769.6 1613.8
(100) (26.4) (73.5) (100) (36.6) (63.3) (100) (32.2) (67.7)

2019-20 1031.8 280.1 751.6 1378.7 508.6 870.1 2410.5 788.7 1621.8
(100) (27.15) (72.85) (100) (36.89) (63.11) (100) (32.72) (67.28)

2020-21 1022.6 277.2 745.4 1383.6 530.7 852.9 2406.2 807.8 1598.4
(100) (27.10) (72.90) (100) (38.36) (61.64) (100) (33.57) (66.43)

Source: Directorate of Employment and Training, Publication, Training and Coordination Division,
Directorate of Economics and Statistics, Government of Karnataka, Men and Women in Karnataka 2016-17
to 2020-21.
Note: Figures in brackets are percentages.

Table 11.8.9: Judges in Karnataka – Gender-wise

Year Women Men Total Women (%)

2016-17 279 701 980 28.46

2017-18 275 684 959 28.06

2018-19 341 751 1092 31.22

2019-20 341 733 1074 31.75

2020-21 347 720 1067 32.52

Source: Directorate of Economics & Statistics, Men and women in Karnataka 2016-17 to 2020-21.

Table 11.8.10: Gender composition of Bureaucrats in Karnataka

Services/
IAS IPS IFS
Year

Women Women Women

Women Men Women Men Women Men
(%) (%) (%)
2017 64 156 29.09 19 133 12.50 17 119 12.50

2018 74 174 29.83 26 149 14.85 17 104 14.04

2019 80 165 32.65 26 142 15.48 17 97 14.91

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Services/
IAS IPS IFS
Year

Women Women Women

Women Men Women Men Women Men
(%) (%) (%)
2020 72 166 30.25 26 145 15.20 17 86 16.50

2021 81 182 30.80 25 136 15.53 18 85 17.48

Source: Men and Women in Karnataka 2020-21, DES.

11.8.9 Gender and Decision Making

The currently rural married women (80.5%) are relatively way behind the currently urban
married women (86.2%) with respect to participation rate in household decision making,
which is a matter of concern. The Table 11.8.11 gives the picture of participation by
currently married women in the house hold decisions.

Table 11.8.11: Currently Married Women who usually participate in Household Decisions
(Percent)

Major Southern NFHS-4 (2015-16) NFHS-5 (2019-20)

States Urban Rural Total Urban Rural Total
Karnataka 83.5 78.0 80.4 86.2 80.5 82.7
Andhra Pradesh 78.8 80.4 79.9 83.4 84.3 84.1
Telangana 81.8 80.3 81.0 88.9 86.2 87.2

Source: NFHS-4 and 5

11.8.10 Gender and Political Representation

The performance of the State is impressive in respect of women’s representation in

Panchayat Raj Institutions (PRIs), which has crossed the mandatory half-way (50%) mark
in all the three tiers of PRIs (Table 11.8.12).

Table 11.8.12: Women’s Representation Status in all the three-tier Panchayat Raj Institutions
(PRIs) of Karnataka

Grama Panchayat Taluk Panchayat Zilla Panchayat

Total Number Total Number Total Number

Total Total Total
Year of Women of Women of Women
Number Number Number
Members Members Members
of of of
Members Members Members
No. % No. % No. %

2000 78349 35064 44.75 3255 1375 42.20 890 339 38.10

2005 91402 39318 43.00 3683 1519 41.20 1005 373 37.10

2010 90643 39327 43.39 3659 2018 55.15 1013 539 53.21

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Grama Panchayat Taluk Panchayat Zilla Panchayat

Total Number Total Number Total Number

Total Total Total
Year of Women of Women of Women
Number Number Number
Members Members Members
of of of
Members Members Members
No. % No. % No. %

2015 & 97062 51497 53.00 3903 1998 51.19 1083 548 50.60
2016

2020 96322 49696 51.59 - - - - - -

Source: SEC cited in the Monograph on status of women in Karnataka, 2000. State Election Commission
(SEC), Govt. of Karnataka, cited in Men and women in Karnataka, 2005, 2010 , 2014-15 and Karnataka
state election commission – Grama Panchayat elections(2015), Taluk and Zilla Panchayat elections (2016),
Grama Panchayath elections (2020).

11.8.11 Gender Inequality Index (GII)

GII combines some aspects of GDI and GEM and it is an innovative approach to assess
gender inequality. It measures gender inequalities in three important aspects of
human development—reproductive health, measured by maternal mortality ratio and
adolescent birth rates; empowerment, measured by proportion of parliamentary seats
occupied by females and proportion of adult females and males aged 25 years and older
with at least some secondary education; and economic status, expressed as labour
market participation and measured by labour force participation rate of female and male
population aged 15 years and older. The GII is built on the same frame work as the HDI - to
better expose differences in the distribution of achievements between women and men.
It measures the human development costs of gender inequality. Thus the higher the
GII value the more disparities between females and males and the more loss to human
development.

Fig 11.8.2: Gender Inequality Index 3 major indicators

Gender Inequality
Index (GII)

Health Empowerment Labour Market

Maternal Adolescent Female & Male Female & Male Female & Male labour
MortalityR Birth Rate Population with shares of force participation
atio atleast secondary parliamentary seats rates
education

Female Female Female labour Male Empowerment Male labour

reproductive Empowerment market index index market index
health index index

Female Gender Index Male Gender Index

Source: Human Development Reports

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GII at District Level

GII across districts indicate a lesser variation after accounting for political participation
at local level. The variation in percentage of loss due to gender inequality is from 21%
(Udupi) to 44% (Dharwad) (Table 11.8.13).

Table 11.8.13: Gender Inequality Index Across Districts of Karnataka -2019

Secondary
Political Education and
LFPR (15+)
AFR Participation above by adult
District MMR GII Rank
(15-19) (25+)

Female Male Female Male Female Male

Bagalkot 48 42 57.2 42.8 30.2 52.8 40.2 68.4 0.324 8

Bengaluru 59 17 54.5 45.5 57.1 69.1 24.6 76.1 0.322 7

Bengaluru Rural 78 39 51.4 48.6 35.9 39.0 22.7 79.1 0.420 29

Belgaum 104 53 51.4 48.6 32.1 48.1 37.8 78.0 0.419 28

Bellary 155 23 50.9 49.1 20.8 33.7 35.2 78.5 0.398 20

Bidar 53 27 51.2 48.8 28.1 50.7 41.9 84.3 0.322 6

Chamarajanagar 44 37 51.5 48.5 22.8 25.0 30.5 79.1 0.342 11

Chikkaballapur 63 33 51.7 48.3 34.5 49.0 24.0 65.9 0.375 16

Chikkamagaluru 58 34 52.6 47.4 34.9 36.7 19.5 74.1 0.397 19

Chitradurga 89 46 54.6 45.4 27.2 41.9 51.1 73.1 0.364 14

Dakshina 89 12 51.7 48.3 30.2 38.2 37.8 73.5 0.281 3

Kannada

Davangere 109 31 52.0 48.0 21.7 33.9 31.6 81.6 0.407 23

Dharwad 209 23 51.8 48.2 31.0 43.6 29.8 85.1 0.440 30

Gadag 65 17 51.8 48.2 30.7 45.2 31.7 83.5 0.321 5

Hassan 60 39 51.8 48.2 20.5 27.5 45.6 84.2 0.341 10

Haveri 79 28 51.5 48.5 12.7 25.2 38.6 79.3 0.360 13

Kalaburagi 165 31 56.8 43.2 17.1 34.7 48.7 76.6 0.395 17

Kodagu 64 23 52.0 48.0 39.3 30.9 36.1 73.5 0.299 4

Kolar 56 52 51.3 48.7 39.3 48.1 27.2 79.3 0.401 21

Koppal 70 50 51.5 48.5 14.1 39.9 41.0 87.5 0.413 25

Mandya 73 36 51.5 48.5 29.9 43.9 26.9 84.3 0.408 24

Mysore 85 42 55.9 44.1 29.0 37.9 28.4 76.6 0.404 22

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Secondary
Political Education and
LFPR (15+)
AFR Participation above by adult
District MMR GII Rank
(15-19) (25+)

Female Male Female Male Female Male

Raichur 127 52 54.6 45.4 11.7 19.2 43.8 73.6 0.414 26

Ramanagar 81 35 51.4 48.6 37.4 49.0 22.7 62.6 0.396 18

Shivamoga 95 19 61.5 38.5 25.2 25.9 31.1 73.0 0.326 9

Tumkur 86 30 51.6 48.4 17.8 42.4 27.1 79.3 0.416 27

Udupi 83 10 54.4 45.6 32.3 35.4 58.0 60.7 0.213 1

Uttara Kannada 46 13 52.4 47.6 29.3 46.6 34.5 69.5 0.250 2

Vijayapura 55 66 53.1 46.9 21.9 40.9 50.9 78.9 0.370 15

Yadgir 74 42 51.5 48.5 15.6 33.5 60.5 79.2 0.351 12

Karnataka 84 34 53.0 47.0 31.6 44.2 33.8 77.4 0.377

Source: Karnataka Human Development Report -2022 (Provisional).

Loss due to inequality is lowest among the districts Udupi, Uttara Kannada, Dakshina
Kannada, Kodagu and Gadag. Dharwad district had highest gender inequality. Bengaluru
Rural, Belgaum and Tumkur are the next three districts with high gender inequality
index. Bengaluru Urban stands at 7th position with GII being 0.322 indicating 32% loss in
achievement across three dimensions due to gender inequality.

11.8.12. The Third Gender Community

Census, 2011 has attempted to capture their number across States, the number of Trans-
gender within the age group of six years (Children), and transgender belonging to
SC and ST community. Trans-genders’ number and Literacy Status is provided in the
Table 11.8.14.

Table 11.8.14: Trans-genders in Karnataka and India – 2011 census

Number of transgender persons

Location Trans-
Child (0-6) SC ST Literacy
genders
Karnataka 20,266 1,771 3,275 1,324 58.82
India 4,87,803 54,854 78,811 33,293 56.07

Source: Census 2011

The Karnataka Government has released the “Karnataka State Transgenders-Policy 2017”
in December 2017. The policy is to provide guidelines for ensuring the constitutional
guarantees of transgenders individually and collectively and directions for implementing
the Supreme Court Judgement (2014) for the inclusion of transgenders as full citizens

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and to provide Infrastructure, Health, Education, Housing and Livelihoods in partnership

with various departments. The transgender cell has been setup at State, District and
Taluka level for the effective implementation of the “Karnataka State Transgenders-
Policy 2017”. However, still more concrete and concerted efforts are needed to ensure
their development.

11.8.13. CHALLENGES & WAYFORWARD

oo The status of human development in Karnataka is witnessing an improving trend

over the years. However, the variation across districts is high with respect to both
Education and Income indicators. To achieve District as a fulcrum for development
these districts needs to focus more on deprived indicators especially, education,
employment, female reproductive health, LFPR etc by providing good facilities
and opportunities with new or existing government schemes for the better human
development.
oo There is a growing concern about the declining Sex Ratio at Birth to 916 in 2020 SRS
report. There is an urgent need to implement the promotional schemes like Beti
Bachao Beti Padhao and Bhagyalaxmi to improve the Sex ratio at birth.
oo The gender-wise educational attainment, according to the All India Survey on Higher
Education 2019-20, shows that the female deprivation/ disadvantage factor is high
in Ph.D and Diploma level when compared to Post Graduate and Under Graduate
levels is a matter of genuine concern in the state and it is to be increased by suitable
programmes.
oo More emphasis should be on education outcomes to bring down the disparity across
districts.
oo The GII can be reduced through improving the reproductive health and female labour
force participation.
Increase women’s participation in labour force by

oo Promoting entrepreneurship among women- Focused schemes in Animal Husbandry,

Dairy, Household industries. Expanding coverage of Udyogini scheme.
oo Capacity building of women in e-trading and e-commerce. Re-training and skill
upgradation in existing sectors.
oo Banks should adopt a single window approach to overcome the procedural and other
barriers to accessing loans by women, especially those belonging to marginalized
groups and communities.
oo Karnataka has launched ‘Elevate WomEN’ initiative exclusively for women
entrepreneurs, by partnering with Not-for-Profit organizations who have considerable
experience in running these programs and by extending support through grant-in-
aid fund, on similar lines as Government of India’s NIDHI Accelerator Program.
oo Women entrepreneurs parks are developed by KIADB in Ramanagara, Mysuru,
Dharwad, Ballari & Kalaburagi. These should be implemented on urgent footing.
oo The issues of the third gender people are also of genuine concern and hence should
be given utmost attention to ensure their development.

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Districtwise Sex Ratio above or below the State Sex Ratio of 973 – 2011 Census

0 15
±
30 60
Km
Bidar 1 cm = 27.5 Km
956

Kalburgi
971

Vijayapura
960 Yadgir
989

Bagalkot
Belagavi 989
973 Raichur
1000

Koppal
986
Dharwad Gadag
971 982 Ballari
984 Legend
District Boundary
Vijayanagara <950
Uttara Kannada 976
979 Haveri 950 - 972
950
>973

Davanagere
972 Chitradurga
Shivamogga 974
998

Chikkaballapura
Udupi Chikkamagaluru Tumakuru 972
1094 1008 984 Bengaluru (Rural)
946
Kolara
978
Hassan Bengaluru (Urban)
Dakshina Kannada 1010 916
1020
Mandya Ramanagara
995 976
Kodagu
1019
Mysuru
985
Map Description: Chamarajanagara
"This map shows Districts with Red Colour are below State Average, 993
Districts with Amber Colour are front liners for State Average and
Districts with Green Colour are above State Average "

Generated from : K-GIS,KSRSAC

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Districtwise Literacy rate above or below the State Literacy rate of 75.36 – 2011 Census

0 15
±
30 60
Km
Bidar 1 cm = 27.5 Km
70.51

Kalburgi
64.85

Vijayapura
67.15 Yadgir
51.83

Bagalkot
Belagavi 68.82
73.48 Raichur
59.56

Koppal
68.09
Dharwad Gadag
80 75.12 Ballari
67.5
Legend
Vijayanagara District Boundary
Uttara Kannada 67.5 <60
84.06 Haveri 60 - 75.35
77.4
>75.36

Davanagere
75.74 Chitradurga Tumakuru
Shivamogga 73.71 75.14
80.45

Chikkaballapura
Udupi Chikkamagaluru Tumakuru 69.76
86.24 79.25 75.14 Bengaluru (Rural)
77.93
Kolara
74.39
Hassan Bengaluru (Urban)
Dakshina Kannada 76.07 87.67
88.57
Mandya Ramanagara
70.4 69.22
Kodagu
82.6
Mysuru
72.79
Map Description: Chamarajanagara
"Map showing the districtwise Literacy rate" 61.43

Generated from : K-GIS,KSRSAC

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Districtwise Female Literacy rate above or below the State Literacy rate of
68.08 – 2011 Census

0 15
±
30 60
Km
Bidar 1 cm = 27.5 Km
61.55

Kalburgi
55.09

Vijayapura
56.72 Yadgir
41.38

Bagalkot
Belagavi 58.4
64.58 Raichur
48.73

Koppal
57.55
Dharwad Gadag
73.46 65.44 Ballari
58.2
Legend
Vijayanagara District Boundary
Uttara Kannada 58.2 <50
78.39 Haveri 50 - 68.07
70.46
>68.08

Davanagere
68.91 Chitradurga Tumakuru
Shivamogga 65.88 67.38
74.84

Chikkaballapura
Udupi Chikkamagaluru Tumakuru 61.55
81.58 73.16 67.38 Bengaluru (Rural)
70.63
Kolara
66.84
Hassan Bengaluru (Urban)
Dakshina Kannada 68.6 84.01
84.13
Mandya Ramanagara
62.54 61.5
Kodagu
78.1
Mysuru
67.06
Map Description: Chamarajanagara
"Map showing the districtwise Female Literacy rate" 54.92

Generated from : K-GIS,KSRSAC

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 Appendix 11.1

Health Instutions in Karnataka (upto Nov 2022)

Autonomous Indian System

Taluk District Other Hospitals Total Total Sub
& Teaching CHC PHC of Medicine
Sl. Hospitals Hospitals under HFW Hospitals Beds Center
Districts Hospitals Hospitals
No.
No’s Beds No’s Beds No’s Beds No’s Beds No’s Beds No’s Beds No’s Beds No’s Beds No’s

1 Bagalkote 5 500 1 300 0 0 0 0 8 280 48 288 6 56 68 1424 234

2 Bangalore (R) 4 400 0 0 0 0 0 0 2 60 48 288 3 26 57 774 167

3 Bangalore (U) 3 300 0 0 6 1475 16 6694 5 150 36 216 9 626 75 9461 195

4 Belgaum 9 900 0 0 0 0 1 1030 16 500 139 834 7 54 172 3318 549

5 Bellary 6 600 1 210 1 288 2 1315 11 350 78 468 7 203 106 3434 272

6 Bidar 4 400 0 0 0 0 1 750 8 240 53 318 4 41 70 1749 280

7 Bijapur 4 400 1 400 0 0 0 0 9 270 63 378 5 90 82 1538 309

8 Chamarajanagar 3 350 0 0 0 0 1 750 3 90 60 360 4 36 71 1586 245

9 Chikkaballapura 5 510 1 100 0 0 0 0 2 60 57 342 2 16 67 1028 199

10 Chikmagalur 6 600 1 400 0 0 0 0 5 170 89 534 4 32 105 1736 375

11 Chitradurga 5 500 1 450 0 0 0 0 11 330 81 486 5 42 103 1808 283

12 Dakshina Kannada 4 400 1 965 1 100 0 0 8 240 65 390 7 81 86 2176 440

13 Davanagere 5 500 1 1030 0 0 0 0 6 180 80 480 3 26 95 2216 301

14 Dharwad 3 300 1 250 0 0 2 1775 0 0 33 198 3 45 42 2568 194

15 Gadag 4 400 0 0 0 0 1 790 2 60 39 234 7 86 53 1570 168

16 Kalburgi 6 600 0 0 0 0 1 650 16 480 84 504 10 133 117 2367 347

Human Development

17 Hassan 7 950 0 0 0 0 1 750 15 450 134 804 8 87 165 3041 456

18 Haveri 6 600 1 250 0 0 0 0 5 150 68 408 3 22 83 1430 303

19 Kodagu 2 360 0 0 0 0 1 650 7 310 29 174 7 50 46 1544 206

491

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Autonomous Indian System

Taluk District Other Hospitals Total Total Sub
& Teaching CHC PHC of Medicine
Sl. Hospitals Hospitals under HFW Hospitals Beds Center
Districts Hospitals Hospitals
No.
No’s Beds No’s Beds No’s Beds No’s Beds No’s Beds No’s Beds No’s Beds No’s Beds No’s

20 Kolar 4 400 1 400 2 305 0 0 2 60 63 378 3 30 75 1573 230

21 Koppal 3 300 0 0 0 0 1 450 9 270 46 276 4 32 63 1328 185

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22 Mandya 6 600 0 0 0 0 1 850 10 300 113 678 7 63 137 2491 385
Human Development

23 Mysore 6 600 1 300 1 50 3 1940 10 300 118 708 13 464 152 4362 438

24 Raichur 4 400 0 0 0 0 2 1000 6 180 50 300 5 51 67 1931 223

25 Ramanagar 3 300 1 100 0 0 0 0 5 150 60 360 4 36 73 946 275

26 Shimoga 6 650 0 0 0 0 1 950 7 210 93 558 4 130 111 2498 305

27 Tumkur 9 900 1 400 0 0 0 0 4 120 144 864 6 56 164 2340 487

28 Udupi 2 200 1 350 0 0 0 0 6 180 62 372 3 30 74 1132 301

29 Uttara Kannada 10 1000 0 0 0 0 1 380 3 110 82 492 7 56 103 2038 343

30 Yadgir 2 200 1 100 0 0 0 0 6 180 41 246 4 24 54 750 176

31 Vijayanagara 4 32 4 32

Total 146 15120 16 6005 11 2218 36 20724 207 6430 2156 12936 168 2756 2740 66189 8871
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Appendix 11.2

District wise SC/ST Population during 2001 census and 2011 census.

Sl. 2001 2011 Projected for 2023

Districts
No. SC ST SC ST SC ST
1 Bagalkot 2.51 0.80 3.19 0.97 4.42 1.26
2 Bengaluru Urban 8.51 0.86 11.98 1.90 20.45 5.12
3 Bengaluru Rural 3.78 0.62 2.14 0.53 2.55 0.69
4 Belagavi 4.62 2.43 5.77 2.97 7.63 3.79
5 Ballari 3.74 3.65 5.17 4.51 3.92 3.57
6 Bidar 2.99 1.82 4.00 2.36 5.70 3.25
7 Chamarajanagar 2.38 1.06 2.59 1.20 2.82 1.40
8 Chikkaballapura 0.00 0.00 3.13 1.56 3.71 1.85
9 Chikmagalur 2.33 0.41 2.54 0.45 2.80 0.51
10 Chitradurga 3.36 2.66 3.89 3.03 4.67 3.53
11 Dakshina Kannada 1.31 0.63 1.48 0.82 2.91 1.20
12 Davanagere 3.33 2.10 3.93 2.33 3.83 2.05
13 Dharwad 1.32 0.70 1.78 0.88 2.64 1.16
14 Gadag 1.37 0.54 1.74 0.62 2.32 1.29
15 Kalburgi 7.18 1.54 6.49 0.65 8.59 0.99
16 Hassan 3.12 0.26 3.45 0.32 3.94 0.43
17 Haveri 1.75 1.27 2.20 1.41 2.97 1.63
18 Kodagu 0.67 0.46 0.74 0.58 0.80 0.77
19 Kolar 6.72 2.06 4.66 0.79 6.74 0.95
20 Koppal 1.85 1.39 2.59 1.64 4.58 2.01
21 Mandya 2.47 0.17 2.65 0.22 2.91 0.31
22 Mysore 4.68 2.71 5.37 3.35 6.66 4.44
23 Raichur 3.17 3.03 4.01 3.67 5.51 4.64
24 Ramanagara 0.00 0.00 2.04 0.23 2.24 0.32
25 Shivamogga 2.70 0.56 3.08 0.65 3.66 0.79
26 Tumkuru 4.74 1.94 5.07 2.10 5.55 2.32
27 Udupi 0.68 0.42 0.75 0.53 0.87 0.71
28 Uttara Kannada 1.02 0.24 1.16 0.34 1.25 0.37
29 Vijayapura 3.34 0.30 4.43 0.39 6.38 0.57
30 Yadgir 0.00 0.00 2.73 1.47 4.00 2.15
31 Vijayanagar 0 0 0 0 4.86 2.94
TOTAL KARNATAKA 85.64 34.64 104.75 42.49 141.88 57.01

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 CHA PT E R

12
GOOD GOVERNANCE
PRACTICES IN KARNATAKA

INTRODUCTION

Good Governance is the key component of the economic transformation and with the
present government’s focus on ‘minimum government and maximum governance’
the Index assumes more significance. Overall,58 indicators have been considered for
estimation of Good Governance Index (2020-21) encompassing Agriculture and Allied
Sector (8), Commerce and Industry (5), Human Resource Development (7), Public Health
(6), Public Infrastructure and Utilities (6), Economic Governance (4), Social Welfare and
Development (10), Judiciary and Public Safety (5), Environment (4), Citizen Centric
Governance (3). Karnataka’s GGI score is 5.11 in 2020-21 as compared to 5.10 in 2019-20 with
an improvement shown in Agriculture & Allied Sector, Public Infrastructure & Utilities
and Social Welfare & Development. Gujarat with 5.66 score tops the list of the States,
followed by Maharashtra (5.43), Goa (5.35), Haryana (5.33), Kerala (5.22), Karnataka (5.11)
and Tamil Nadu (5.05).

Ease of Doing Business which is part of Good Governance Index, as per 2022,
Karnataka emergedas top performer in Ease of Doing Business rankings, along with six
states(Telangana, Andhra Pradesh, Gujarat, Haryana, Punjab and Tamil Nadu). Karnataka
has improved its position from 17th position to the Top Achiever.EoDB is also part of India
Innovation Index, where Karnataka ranks first rank with a score of 18.01 as per 2021.

Government of Karnataka is in the forefront in initiating and implementing successfully

several e-Governance and g-Governance projects of national importance in order to
improve delivery of public services.Karnataka has an exclusive e-Governance Division in
the Department of Personnel & Administrative Reforms, which was set up in the year
2003 with a view to accelerate the process of IT enabling government processes for the
benefit of citizens and to improve transparency and efficiency in administration.

State Institute for Transformation of Karnataka and its supporting offices will play a crucial
role for Decentralized Planning, Strategy formulation and Outcome based Evaluation for
effective implementation of outcome-based budgeting.

Remainder of the chapter includes good governance initiatives such as e-Governance

applications, Avalokana (New Decision Support System), Special Development Plan,
State Institute for Transformation of Karnataka, and Karnataka Evaluation Authority.

12.1 E-GOVERNANCE INITIATIVES RELATING TO THE DEPARTMENT OF PERSONNEL

AND ADMINISTRATIVE REFORMS (E-GOVERNANCE)

A. KarnatakaState Wide Area Network (KSWAN): The KSWAN is in operation since

Dec 2009 with gradual updates from KSWAN 1.0 and KSWAN 2.0. The next stage of
the project, i.e., KSWAN 3.0 has been proposed and the DPR is approved for 931.15
Crores. Under this project, it is envisaged to extend the connectivity to all the Gram
Panchayats covering about 22000 offices.As on date, KSWAN connectivity is provided
to about 6600 Government offices and about 600 offices will be covered shortly.
B. e-Procurement: This project has been extended to 353 procurement entities as
on 31st December 2022. A total of 11,62,783 tenders and 56,919 auctions have been
published in Karnataka Public Procurement Portal and 30,11,076 bids have been
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received against these published tenders. This platform has enabled competition
among the bidders. As on 31st December 2022, 1,57,696 suppliers are registered on
the platform.
C. Karnataka State Data Centre (SDC): The SDC hosts about 395 application and
337 plus web portals.The KSDC has been hosting G2G, G2C and G2B applications
of various departments. Some of the critical applications include Kutumba, FRUITS,
Bhoomi, Seva Sindhu, Sakala, KAVERI- Property Registration, KSRSAC, UUCMS, KSBCL,
e-Proc etc. In order to ensure business continuity for the critical applications, DR has
been setup in Mohali and Near DR in Bengaluru embracing 3 way data replication
technology.
D. Security Operation Centre for SDC(SOC-SDC): CeG SOC is also being integrated
with the Threat Intelligence and advisory feeds from CERT-IN, MEITY, NCIIPC which
would further enhance the security posture of CeG SOC to proactively mitigate any
cyber-attack.Currently the SOC has been set-up at a total project cost of Rs.9.98 Crores
which includes the cost of Hardware and Software and maintenance for a period of 3
years.
E. Unique Identification Numbers (UID): The aim of the project is to provide an Aadhaar
number for 6.75 Crore of population. As on date, approximately 6.76 Crores Aadhaar
numbers have been issued to the residents. Apart from this, many beneficiary schemes
of the Government of Karnataka have included Aadhaar-based authentication, which
in-turn helps in the targeted delivery of services to the right beneficiaries.Currently,
12,537 Aadhaar Centres have been deployed at various locations across the state.
F. Karnataka Resident Data Hub (KRDH): KRDH collaborates closely with the
department’s technical team, effectively assisting them with e-Sign services,
Aadhaar Authentication, Namescape and Transliteration services. Till date 238985413
authentication transactions have been performed in Production environment and
1883991 in preproduction AUA. Further, 61 departments have been on-boarded and
total of 2,46,77,597 eSigns have been consumed by departments.
G. Digilocker: DigiLocker is a platform for issuance and verification of documents
& certificates in a digital way, thus eliminating the use of physical documents.
Organizations that are registered with Digital Locker can push electronic copies of
documents and certificates (e.g. driving license, PAN, Voter ID, School Certificates)
directly into citizens digital lockers.More than 50 State Departments adopted the
DigiLocker facility successfully in Karnatakaand more than 25 Departments are
issuing e-documents to individuals/citizens in a standard format making them
electronically available in DigiLocker. Around 28 crores of documents/certificates are
made available in DigiLocker from various departments and universities of Karnataka
state.
H. e-Office: The e-Office has been successfully implemented in all the offices of GOK
Secretariat, Head offices, DC offices, SP Offices, ZP Offices and other offices. This
apart, the implementation of e-office is under process in the line departments. As on
Nov-Dec 2022, a total of 1490 officers have implemented with 39358 user registration,
1763103 files and 10183287 receipts. Under e-PAR during 2021-22, the progress of e-PAR
for Group A officers posted was 25349 of this, 13045 e-par generated and 394 closed.

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The training on e-Office and e-PAR application as on 7/01/2023 for 18,088 users of 896
departments. The e-Leave (Leave Management system) module of e-Office has been
successfully implemented in all the offices of GOK Secretariat. Presently, 2571 users of
secretariat are using the e-Leave module.
The Department is providing consultants to other Departments for the
implementation of e-Governance initiatives. For this purpose, State e-Mission Team
(SeMT) is established in the Department, and it is interacting with other Departments.
The physical achievements are as follows:
oo Conducted More than 200 e-Governance initiatives training programmes for all the
Group ‘A’ & ‘B’ officers and Group ‘C’ employees of various departments.
oo More than 2000 employees were trained on e-Governance initiatives, e-Office,
e-par, e-Procurement, ICT trainings from all the District Training Institutes and at
Administrative Training Institute, Mysore.
oo 1,92,926 Government employees have qualified the online Computer Literacy Test
and 62,886 Digitally Signed Certificates issued to qualified employees.
oo Sponsored 3 Government officers for Certified Cyber Warrior online course from
IIT Madras and 2 Government officers for Executive Development Programme
from NISTD, 1 Government officer for Big Data Analytics from IIM, Ahmedabad, 1
Government officer for Becoming as Effective CIO from IIM, Ahmedabad.
oo Conducted a Cyber Security awareness programme to Government employees at
Vikasa Soudha and more than 309 employees benefitted.
oo Conducted GeM trainings to Government employees at Vikasa Soudha and more
than 140 employees benefitted.
oo Conducted e-Office and e-Par trainings to Government employees at Vikasa Soudha
and more than 403 employees benefitted.
oo Online PG Diploma in Cyber law, Cyber crime Investigation and Digital Forensic for
36 employees.
oo 1 Government officers for Cyber Surakshit Bharat Physical training programme from
NeGD.
I. Kannada Computing: For Effective implementation of Kannada in all the domains of
Information technology including Administration, following activities are taken under
e-kannada: Localization of Government Applications/Software’s (13 Government
Applications are localized), develop technical tools for Kannada language, to bring
the various Glossary and dictionaries (64 No. available) into a single digital platform
as a Kannada lexical hub (PADAKANAJA). Transliteration Tool application is live and
available for public usage.First Version of the Machine Translation of the tool is under
testing process.
J. State Scholarship Portal(SSP): SSP does Direct Benefit Transfer into Aadhaar
Seeded Bank Account of the Pre-Matric & Post-Matric Scholarship. As on
10.01.2023with regard to pre-matric scholarships, 21,56,862 students paid scholarship
(application Payment process is still under progress) as against 31,62,350 who
have applied for it. Further Scholarship Disbursal Statistics of Departments

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which sponsor scholarship to students in addition to the scholarship schemes

being disbursed by other Welfare departments are 4,08,399 (Application
Payment process is still under progress) as against 6,19, 125 eligible students.
As on 10.01.2023 with regard to post-matric scholarships, 13,09,365students paid
scholarship (application Payment process is still under progress) as against 16,80,206
who have applied for it. Further Scholarship Disbursal Statistics of Departments
which sponsor scholarship to students in addition to the scholarship schemes being
disbursed by other Welfare departments are 9,66,467 (Application Payment process
is still under progress) as against 11,92,794 eligible students.
K. Direct Benefit Transfer (DBT): On the DBT Platform 309 schemes pertaining to 42
departments have been on-boarded on to the DBT platform. The Major Schemes
which have been on-boarded are Scholarship Schemes, Minimum Price Support
schemes, PM-Kisan State Scheme, CM-Relief Fund, Housing Schemes, Milk Incentive
scheme.During the Year 2021-22 Rs.11,925.11 crores were disbursed through this
platform to 1.80 crores beneficiaries.
L. Kutumba: The Department of e-Governance has implemented the “Kutumba”
project which is a centralized data repository of families in Karnataka consisting of
the individual and family attributes. The PDS data has been used as a base and other
department database have been integrated with it. 5.5 Crore residents of Karnataka
i.e. nearly 90% of the state population (as per 2011 census) have become part of
Kutumba system.Kutumba is an Entitlement Management System which allows the
Government to identify residents who are eligible for welfare benefits and suo-moto
deliver the benefits “without the resident having to apply”.
Kutumba system empowers departments to weed out deceased, ineligible and
ghost beneficiaries from their IT systems. Kutumba also aids the Government in
Policy making, Planning and budgeting. It provides aggregated data on likely
eligible beneficiaries and thus impact on budget (through financial outlay required).
It also supports the Government to implement conditionalities in schemes like single
benefit per family - Kutumba data has been used extensively by the Rajiv Gandhi
Rural Housing Corporation to identify families. Kutumba project has been recognised
nationally and has been awarded with National e-Governance Award (Silver Category).
M. Karnataka Open Data Initiative (KODI): providescitizen access to data sets of
various sectors and improve public understanding of State’s operations. Currently
113Departments published datasets on KODI and with 7217 number of resources/
documents. The major future plan onboarding all remaining departments on KODI
and accomplishing the goal of OGD for all State departments.
N. My Gov: The Project Monitoring Unit (PMU) functions directly under Chief Minister’s
Office and the Center for e-Governance assists the PMU with Human Resources,
Software and Hardware requirements. The platform is both in Kannada and
English languages. MyGov Karnataka works as an idea crowdsourcing platform and
aims to promote active citizen participation and engagement in governance and
policymaking. Dissemination of timely and authentic information about government
welfare schemes is the prime focus of MyGov Karnataka.Future plan is to visualize
and showcase the success of government achievements through success stories and
positive stories to motivate other citizens to make use of government initiatives.

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O. RTI Online: In the first phase, 516 offices have been trained and onboarded the RTI
Online portal effectively.In the second phase, 776 offices have been trained and
onboarded the RTI Online portal effectively.More than 55842 applications have been
received through the RTI online portal, 39445 applications have been disposed of
and 16397 applications are in the process of being disposed of.The project has played
an important role in increasing transparency in governance so that the public can
access the information easily.
P. Crop Survey: During the year 2017, to alleviate the problems of data collection and
accurate data availability, the State Government decided to take up Crop survey work
using mobile software application developed by the DPAR (e-Governance) with the
help of officials of the Revenue, Agriculture, Horticulture and Sericulture departments.
Since 2019-20 the Crop Survey is being conducted by the Department of Agriculture
in collaboration with the e-Governance Department using the Mobile App from
2020-21 onwards both farmers and private residents are involved in crop survey.
Uses of data collected under Crop Survey Project areCrop area enumeration by DES
(Agriculture and Horticulture), Input subsidy, Crop Insurance scheme, MSP operation
and Sanction of beneficiary-oriented schemes of Agriculture and Horticulture based
on parameters.
Q. Karnataka State Web Portal (KSWP): The websites of various Departments are
further enabling the Government to bring G2C, G2G and G2B services to the citizens
and external agencies, increasing its authenticity, uniformity and trust worthiness.Till
date, Centre for e-Governance has redesigned, developed and hosted 624 websites
of various Government Departments, Corporations, Boards and other allied agencies
and more than 2000+ officials have undergone CMS training.
R. Karnataka Government Secretariat LAN (SECLAN): The Administrative Department
offices Vidhana Soudha, Vikasa Soudha and MS Building have been provided with
Local Area Network enabling various departments to access high speed internet and
intranet based applications for better and efficient governance.
S. KAVERI Property Registration using Blockchain: The project is implemented on the
lines of National BlockChain Project, a Govt. of India scheme. The pilot was conducted
in 6 SRO offices (Gubbi, Jagaluru, Hosadurga, Kundapur, Sidlagatta&Sirsi) from Nov
2021 to March 2022.The issues & observations recorded during the pilot phase were
discussed in the meeting of Secretary, DPAR (e-Gov), Secretary, Revenue, IGR, Stamps
and Registration Dept and Commissioner, SSLR held on 24th March 2022, wherein
it was decided to explore an alternative to physical KAVERI cards and redevelop the
application for its roll-out across the state. This activity is planned to be taken up after
the KAVERI 2.0 project goes live.
T. Suvidha: Suvidha is a one stop solution for all Citizens for Scheme Discovery, Eligibility
Check & Service Delivery for all schemes and Services from various Departments of
Government of Karnataka. This Project is Monitored by Centre for e-Governance,
Government of Karnataka.
U. National Academic Depository (NAD): National Academic Depository (NAD) is
an initiative by Ministry of Education (MoE) to provide a 24X7 online depository to
Academic institutions to store and publish their academic records (Marksheet,
Caste certificates). Till date, 77 Universities Registered and 69 Universities published
Academic Awards on DigiLocker-NAD.

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V. Mahiti Kanaja: MahitiKanaja is a single web portal with no username or password

where citizens can obtain all public services and scheme information in a timely
manner without filing an RTI. A special Panchayat Level Digital Dialogue was
conducted on MahitiKanaja Project to obtain and address the grassroots level
information to be displayed on MahitiKanaja Portal.Till date, more than 500+ services
from 130 Departments are onboarded in MahitiKanaja with 21 Lakh plus visitors in
the period of one year. Our platform also shall play a significant role in improving
the functioning of other good governance initiatives like the Integrated Public
Grievance Redress System, Family ID program, and Karnataka Open Data Initiative.
Achievements are providing GP/TP/sector wise services, introduction of GO’s, Policies,
and Circulars Sections and data visualization.
W. Farmer’s Registration and Unified Beneficiary Information System (FRUITS):
FRUITS is acommon database facility for Registration of farmers, and other
beneficiaries who want to avail benefits from the Government. It also facilitates
various departments in providing assistance to the beneficiary by connecting to DBT
portal and therefore also acts as a repository of benefits provided. “FRUITS” is aimed at
bringing departments like Agriculture, Horticulture, Sericulture, Animal Husbandry
& Veterinary Sciences, Fisheries, Backward classes, and social welfare on to a single
platform.
FRUITS helps in Registering Farmers and non-farmers and provides a unique ID.
The Registration is once in lifetime activity, as a result the beneficiary need not carry
his/her documents to the next department and for every scheme. Benefits given
to a person can be tracked using Registration ID which is mandatory for all the
departments to capture before providing benefits. This would not only stop multiple
benefits reaching the same beneficiary but also helps in inclusive growth.
FRUITS is integrated with the state DBT portal and through the DBT portal it is also
integrated with Khajane II (K2) /Financial Management System.Major beneficiary
schemes included are PM KISAN State Contribution, Financial Assistance to Maize
growers under Covid-19 relief, COVID Relief Assistance to Flowers, Fruits and Vegetable
Growers (Comprehensive Horticulture Development), National Food Security Mission,
MSP for Tur (MARKFED), Ragi, Paddy, Maize, Jowar, Groundnut, Green Gram & Horse
Grams and Milk incentives to milk pourers of KMF.Till December 2022, more than 83.12
lakh farmers registered in FRUITS. Around Rs. 16761.11 Crores of assistance provided
through the system by various departments. Banks and Co-Operation institutes are
also using FRUITS for extending Agriculture loan, more than 20,000 Branch including
more than 5,000 PACs are using FRUITS data.
X. Integrated Public Grievances Redressal System (iPGRS): iPGRS, also known as
Janaspandana, is a one stop multi-modal, robust, data-driven & paperless IT platform
to transform the Karnataka’s Grievance Management System for registration,
processing and redressal of the public grievances regarding the delivery of services
and schemes of various Departments of Government of Karnataka
The citizens can register their grievances pertaining to 40 + Departments and 1300 +
schemes / services delivered by Government of Karnataka. As on 09-01-2023, 60,874
grievances have been received through web portal (https://ipgrs.karnataka.gov.
in) android mobile application -Janaspandana and dedicated call centre with the
Helpline number 1902.

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As of now more than 35000+ government employees from 40 + departments have

been trained. Meetings with all the Heads of Departments, Deputy Commissioners,
Chief Executive Officers are conducted on iPGRS and their feedback/opinion on the
system is also taken. Apart from this, Hands-on training to all the L1, L2& L3 Officers
of all the Departments in Bengaluru Rural, Ramanagar, Chickmagaluru, Tumkur,
Hassan, Bagalkot and Vijayapura districts have been provided.
Y. E-Sahamathi: e-Sahamathi, a generic consent manager, is first of its kind in the
Nation which allows data seekers to seek consent of data principal (citizen) to
access her/his personal data that is available in Government databases. e-Sahamathi
platform is the intermediary which connects the data seeker to the data principal
and communicates the consent to the concerned database (data fiduciary) to share
data.
Around 20 Data Seekers until now have put forth their interest to register on to
e-Sahamathi platform as a Third-Party Service Providers (TPSP). Two Data Fiduciaries
i.e., National Academic Depository (NAD) and FRUITS have been on-boarded on
e-Sahamathi platform to share the data which are made available on their respective
databases with TPSPs. Six TPSPs have been approved and on-boarded to the
e-Sahamathi platform 2 more data seekers are in pipeline to register as TPSP. Future
is aiming to reach out to maximum data principals and data seekers by conducting
educational and awareness programs across the state.
Z. K-GIS: K-GIS has more than 500+ updated Spatial Layers with extensive attributes
and rich content of satellite images, thematic maps, ground survey and MIS data with
Geographic reference. These K-GIS Spatial layers are made available in this portal.
Single gateway access to GIS layers of data for more than 100departments. It has
been included as a regular program for continuous GIS support to all departments
of GoK and to develop geospatial applications for deeper and extensive geoenabling
the governance process in the GoK. K-GIS portal has been developed under the
project as a single gateway access to more than 500 GIS layers and many decision
support applications both mobile and web enabled to serve the needs of various
departments of GoK. Also, the portal provides metadata service, data ingest service,
data sharing service etc. This portal hosts most extensively used mobile applications
such as Dishank, Chunavana, Maulya, Kushalakosha etc helping in speedier decision
making and governance.
Karnataka at Glance (KAG) / District at a Glance is annual publication of the Planning,
Programme Monitoring and Statistics Department brought out through online
linking the GIS portal of Karnataka Remote Sensing Application Centre. KAG consists
of 1739 parameters (static-562 & dynamic-1177)- geospatial taluk/district maps.
Today, K-GIS datasets and applications are adopted and used extensively in almost
every department of the state. The faster realisation of establishment of state level
GIS was made possible due to some of the unique features adopted under K-GIS
within the scheduled time and cost much lower than estimated. Some of the unique
innovations and best practices are:
oo Institutional support – through GO’s, Policies, Periodical reviews at senior level for
mandating the use of K-GIS.
oo Training and Capacity Building from State to Taluk officers

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oo Pooling of all existing GIS Licenses across departments.

oo Common Spatial framework with HR satellite image base
oo Common base data framework
oo Shared physical infrastructure with State Data Centre
oo Modularized application / viewers with standard tools
oo Developed common API’s for accessing K-GIS datasets and Location based services.
oo Staggered deployment of application on the hardware and increased resources –
based on usage upon performance tuning and improvements.
oo Focused on information completeness and – spatial accuracy improved incrementally.
Today, K-GIS has graduated to offer the following.

oo Develop web / mobile application – as per the requirements of department.

oo Provide GIS data as service.
oo Provide GIS application / viewer with standard tools as a service.
oo Provides the GIS Platform as a service.
Table 12.1 Financial Progress of Department of Personnel & Administrative Reforms
(E-Governance) (Rs. in Crores)

2022-23 Total Releases Total

No. Scheme Name Allocation upto Expenditure
(BE+SE) (January) (Upto January)
1 e-Governance Project 59.00 54.91 51.68
2 Karnataka State Remote Sensing 8.00 6.00 6.00
Application Centre
3 Directorate of e-Governance and 23.32 12.25 8.69
Electronic Delivery of Citizen Services
(EDCS)
4 Transaction charges on DBT 3.00 0.51 0.46
Total 93.32 73.67 66.83
Source: Avalokana (29.1.2023)

Financial Progress clearly indicate that the expenditure to release ratio is around 91% up
to January 2023.

12.2. AVALOKANA – NEW DECISION SUPPORT SYSTEM

oo In order to get the timely automated data at a single platform Planning Department
promoted innovation work on Output and outcome based, geo targeted budget for
ensuring sustainable development of the State, which seeded the idea of “Avalokana”.
The platform assimilates and integrates automatically data from the Taluk level to the

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State on more than 1800 schemes (State Sector and District Sector) implemented
in 45 administrative departments. More than 20,000 Government Officers are on
boarded in the system. The State Treasury system Khajane II is integrated with
Avalokana to provide seamless real time information on expenditure for each drawing
and disbursing officer. The boards and corporations of the Government also update
their financial information on Avalokana.
oo The 49 parameters mentioned under Champions of Change adopted to capture
the sustainable development of each taluk across the 5 thematic sectors of Health,
Education, Agriculture, Basic Infrastructure & Financial Inclusion-Skill development.
oo Geo-spatial visualization is being incorporated for all schemes and Data in the form
of reports were made available for public consumption.
oo Avalokana ensures total transparency by providing data access and information from
state level view to taluk view on budget allocated, expenditure and release across all
1800 schemes.
oo SDG baseline for each taluk has been established by acquiring data for each of the
227 taluks across 49 indicators of 5 thematic sectors. The overall goal of the SDG
Barometer is to obtain several updated insights into the SDG landscape in Karnataka
for various types of organizations, including companies, governmental and non-
governmental organizations and educational institutions.
oo 1200 parameters are available on GIS platform to measure performance.
oo Apart from monthly reviews at State/District/Taluk/GP level, the DISHA meeting for
review of Central Sector schemes, both in Financial and physical terms has been
facilitated.
oo Schemewise District/Taluk wise analytics for poor performance is available for
improving administrative efficiencies.
oo Data has been organically collected in way of input from the taluk level, APIs with
various departments are being integrated.
12.3 Special Development Plan (SDP)

Special Development Plan is being implemented by the Government to improve the

114 backward taluks identified by the Dr.D.M.Nanjuandappa Committee since 2007-08.
40% of the SDP budget is earmarked for Kalyan Karnataka Region. From 2007-08 to
2021-22 an amount of Rs.38,979 crore has been allocated of which the amount released
is Rs.33,200 crore. The expenditure incurred is Rs.30,699 crore. For 2022-23 an amount of
Rs.3,070 crore is allocated in the budget of which an amount of Rs.1357.41 crore has been
released (upto Jan 2023). The expenditure incurred is 849 crore upto Jan 2023.

Kalyan Karnataka Development Board

In pursuance of the article 371(J) Kalyan Karnataka Region Development Board was
formed on 06.11.2013. Despite the interventions to develop the KK region on par with the
relatively developed regions, vital indicators relating to human development, in particular,
of the region depicts that the gaps in the indices still persists. This indicates that the
barriers to development are still strong enough to retard the development processes.

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In this context, intensive efforts are required to bridge the development gap and attain
equitable distribution of gains from development across regions and people in the State.
Therefore, to plug the backwardness of the Kalyana-Karnataka region, State has made a
conscious effort by substantially increasing the allocation provided to the KKRDB.

For 2022-23 an amount of Rs.3000.00 crore is provided in the budget out of which Rs.1500
crore is allocated under micro plan prepared by the KKRDB and Rs.1500 crore for mega
projects. An amount of Rs.1010.47 crore has been spent upto Jan 2023 as against the
allocation of Rs.3000 crore. The focus, however, needs to be on education, health and
nutrition and skill development along with development of farm and non-farm activities.
Therefore, formulation and effective implementation of development programmes
tailored to the needs of the region are required to meet the challenges of this region.

12.4 EVALUATION OF GOVERNMENT SCHEMES/PROGRAMMES

A surge in public expenditure driven by economic growth, resulted in a growing demand

for Monitoring and Evaluation. Macroeconomic policy makers are concerned about
quality in public spending and better outcomes from public investments.Karnataka was
one of the first States in the Country to evolve an Evaluation Policy in 2000. The main
aspects of the evaluation policy are: (i) Schemes over Rs.1 crore outlay evaluated at least
once in a Plan period, (ii) 1% of the total outlay of a project/scheme to be kept for project
evaluation purpose in the Department and (iii) Outcomes to be used for Improving
Programme Design and Delivery and (iv) Justification to take a Programme forward
beyond Plan period.

Increasing importance and usefulness of Evaluation of Schemes is evident that

Government of Karnataka has made a budget announcement that schemes / projects
with annual outlay more than Rs. 100 crores to be evaluated mandatorily once in plan
period (budget para 184 of 2021-22)

Karnataka Evaluation Authority (KEA) was set up vide Government of Karnataka order
no. PD/8/EVN (2)/2011 dated 11th July 2011 and registered as a society vide registration
number DRB-C/SOR/140/2011-12 on 19th September 2011 under the Karnataka Societies
Registration Act, 1960. It functions under Planning, Programme Monitoring and Statistics
Department (PPMS).

Apart from the grant for evaluation studies from the Government of Karnataka, KEA
receives funds from UNDP for preparation of Human Development Reports and other
line Departments for preparation of various evaluation and research study reports. The
total receipts from 2011-12 to 2022-23 is to the tune of Rs. 8007.59 Lakhs with a Expenditure
of Rs. 6441.97 Lakhs, resulting in a balance of Rs. 1565.62 Lakhs (80.44% utilisation). The
total receipts for 2022-23 is Rs. 2066.08 lakhs with an expenditure of Rs. 621.89 Lakhs,
resulting in a balance of Rs. 1565.62 Lakhs.

Evaluation Studies completed from 2011-12 to 2022-23

During 2022-23, KEA has completed 5 studies and 19 are ongoing studies. Till date since
inception of KEA in 2011-12, 160 studies have been completed pertaining to departments of
Agriculture, Horticulture, Water resources, Industries and Commerce, Health, Education,
Social Welfare and Women and Child Development, Education, Karnataka State Women

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Development Corporation, Karnataka Rural Drinking Water and Sanitation Department,

Public Enterprises. Out of 160 external studies (third party), 83 % are impact evaluations.
8% are based on secondary data analysis, 4% are Research Studies and 5% are process
evaluations. KEA also provides technical support for evaluations of schemes by the
departments themselves.

Major recommendations from the Evaluation studies (2021-22)

Karnataka Rural Infrastructure Development Limited (2014-15 to 2019-20)

(i) KRIDL needs to be better utilize its significant cash reserves and fixed assets. Existing
equipment/ machinery/ infrastructure should be upgraded and put to use. Old workshops
should be revived so that material can be procured, and their repairs can be done in
house. Leasing/ renting arrangements for existing fixed assets such as land, buildings
can be explored for earning regular income. Surplus cash can be invested in higher
return earning instruments like reliable mutual funds, long term pension funds, etc.
(ii) Implementing Enterprise Resource Planning (ERP) solution across key modules such
as Engineering, Material management, Contract management, financial accounts, Tender
management, and MIS. This will help to provide a single, seamless and integrated data
view across the company and improve accuracy and timeliness of business processes.

Evaluation of National Horticulture Mission 2015-16 to 2018-19

(i) Focus on human resources development, (ii) reducing delay in disbursement of

subsidies to beneficiaries, (iii) skilling/upskilling of staff and farmers on modern techniques,
(iv) strengthening collective action and value chains of both conventional and organic
produce, and (v) convergence with schemes like ODOP, RKVY, PMKSY.

Technology Assisted Learning Programme (TALP)

(i)Facilitate development of (digital) CD/DVD library in all TALP schools using DLR, OLR
and audio cassettes for language learning, (ii) Standardize quality of training programmes,
bring uniformity in training. Roll out a SoP for DIETs. Ensure full complement of staff
for DIETs, (iii) There is a need for a CLOUD NETWORK in the Department of Education
with a spread across all wings of the Department, the DSERT/DIETs specifically, the TALP
monitoring wings across all levels of governance, for MIS and SATS management and
finally, most significantly the high schools (and PU Colleges).

Karnataka State Police Housing and Infrastructure Development Corporation Limited

(2010 - 2021)

(i)The quality of construction of houses built by the Police Housing Corporation is not up
to the expectation of the police force and is demonstrated by a poor Satisfaction Index of
2.03/ 5.0. Hence, the Corporation needs to improve the quality of construction by way of
clear satisfaction of contract specifications and completion of project within cost and time,
(ii) To mitigate the time escalation in the implementation of its projects, the Corporation
can look at the adoption of project management tools like SCRUM, which is a framework
for developing, delivering, and sustaining products in a complex environment, (iii) User
Departments to have regular maintenance contracts with the Police Housing Corporation
for consistent maintenance of the buildings. The Government needs to create a Special
Purpose Vehicle (SPV) under the umbrella of the Police Housing Corporation to oversee

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and manage the upkeep and maintenance of the building constructed by it, and (iv) To
sustain and grow as a commercial entity, the Corporation needs to register its activities
under K-RERA.

Evaluation Study Human Elephant Conflict the Mitigation Methods Employed and
its Impact on Conflict Resolution

(i)EPT and solar fence barricades have been effective in deterring and reducing conflict.
In large tracts fencing at individual or community level have been proven to be cost
effective and also turned out be popular. In flat and plain areas EPT and solar fence at
individual and combined has given good deterrent abilities. In hilly areas the risk ranges
from moderate to high and solar fences have been more effective, (ii)October, January and
March have been indicated to be with high number of crop raids, necessary precautions
to be taken. Squads and youth groups can be equipped to drive the elephants away and
(iii) Community solar fencing for farms is better compared to single fencing, (iv) Optimal
Forest Habitat Management

Evaluation of Karnataka State Road Transport Corporations (KSRTC, NWKRTC and

KKRTC) (2014-15 To 2019-20)

(i) Digitizing the depot level route maps and integrate with corporation level, (ii) Adopt
ITS system to provide real time updates to passengers and (iii) Asset monetisation

Pashu Bhagya Scheme (2015-16 to 2018-19)

(i) IT enabled services for selection of beneficiaries, (ii) e-marketing platform and
(iii) convergence with schemes like Krishi Bhagya, RKVY, Solar Schemes, MGNREGA,
fodder plantation

PMKSY-PDMC (Micro Irrigation)(2016-17 to 2018-19)

(i) Strengthening single window model, Karnataka Antharaganga Micro Irrigation

Corporation (KAMIC) Limited for further improving the efficacy of the micro irrigation
program in Karnataka, (ii) convergence with the irrigation related schemes like PM-
KUSUM, National Horticulture Scheme, Rashtriya Krishi Vikas Yojana, Jal Jeevan Mission,
and Integrated Scheme on Oilseeds, Pulses, and Oil palm and (iii) post-installation services,
training and maintenance and insurance should be made mandatory for sustaining the
benefits throughout the economic life of the equipment.

Agriculture Technology Management Agency (2019-20)

(i) strengthening and increasing in the activities under training, exposure visits and
new technologies, (ii) NGOs can help to enhance the impact of the scheme for the
beneficiaries, and (iii) Allied sectors should have been more affectively involved in ATMA
activities based on the priority of each sector.
Loan availed by Self Help Groups at Concessional Interest Rates from Cooperative
Institutions
(i) Currently the loans are given by the DCC bank with the representation of PACs. The
loans can be directly sanctioned and dispersed through NRLM and (ii) Loan amount for

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SHG members should be increased from Rs. 50,000 to Rs.1,00,000. Paving way for the
diversification of business.
Industry Related Services Modules of Major Government Departments (2019-20)
(i)The factory department could emulate the AP where factory plan approval is end
to end online and the intelligent system employed can read AUTOCAD drawings.The
automated system hasreduced the time taken for planapproval to 5-7 days frompreviously
25-30 days, (ii) For application status tracking in the commercial tax department, it can
replicate the one from Haryana state portal information, (iii) Andhra Pradesh is faster than
Karnataka state pollution board because consent services are end to end, online system
ensures consent time has been reduced from 45 to 21 days, presence of auto renewal
self-certification process , inspections carried on computerized risk based model, (iv) The
Labour department portal can emulate from Haryana state portal features of application
tracking and from Goa state portal information security, (v) Bangalore Development
Authority can emulate features from Gujarat and Kerala state portals for enhancing
information accessibility and user friendliness and (iv) The Directorate of Municipal
Administration can implement An intelligent system for approval of building plans that
could improve SAKALA adherence, Similar to the system AP has developed for approval
of factory building plans. Self-certification and simplified inspections will help in better
understanding on the side of the applicant.
Karnataka State Forest Development Corporation, Karnataka State Forest Industries
Corporation and Karnataka Cashew Development Corporation (2015-16 to 2019-20)
(i) Establishment of Monitoring Information System (MIS) to control and improves the
quick decision for the timely operations, access to data for effective decision making etc.
At present, the corporations are doesn’t have any MIS system in place, (ii) KFIDC (Rubber
Wing) may be merged with the Plantations Corporation, since both their operations are
on the production end. They are either involved in planting or harvest of matured trees.
The merger committee should have extract care on the following aspects: seniority of the
permanent officials and (iii) The KCDC needs to work closely with research institutes like
the NRC (Cashew) for arriving at robust methods for estimating productivity, solutions
for weeding problems in plantations and training in modern grafting techniques.
Evaluation of Multi-Village Water Supply Schemes implemented by RDWSD in
Karnataka during 2015-2020
(i ) Scheduled water quality check, (ii) recharge defunct borewells, (iii) automation of
water supply, (iv) introduce incremental block tariff for bulk water supply and (v) develop
a ToT team and synchronization of water supply.

Interest Subvention for Women Entrepreneurs implemented by Karnataka State

Women Development Corporation (2015-16 to 2018-19)

(i)The evaluation of loan applications/proposals should be streamlined and uniform, (ii)

the loan application, processing and repayment should be simplified and digitized, (iii)
A unified Management Information System (MIS) for the Interest Subvention Scheme
should be established, (iv) The scheme provisions could be made more attractive to
expand the uptake of the scheme, (v) A library of bankable projects could be created for
consideration under funding, (vi) Backward and forward linkages should be provided to
service sector enterprises to enhance their sustainability and effectiveness of operations.

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Impact of Evaluation studies

The outcome of evaluation is the mid-course corrections in the scheme guidelines,

implementation processes leading to enhanced achievements. Hence KEA is continuously
striving for effective implementation of recommendations in evaluation studies. The
follow up with the concerned Departments continues till the Action taken Report (ATR)
is received from the Departments. Out of the total 160 studies till December 2022, 143
action taken reports have been received and 17 are awaited from departments.

Action taken received from the department on the recommendations of the selected
evaluation studies during 2022-23

1. Evaluation Of Functioning and Effectiveness Of Industry Related Services

Modules of Major Government Departments In Promoting Investor Friendly
Business Environment For Industries In Karnataka from 2019-20
oo The recommendation given in the Evaluation of Functioning and Effectiveness of
industry-related services modules of major Government Departments in promoting
an investor-friendly business environment for industries in Karnataka (2019-2020).
For enhancing the process and lT efficiency of services, the Department of Stamps
& Registration, Government of Karnataka is in process of revamping the Kaveri
application by introducing blockchain technology in the land registry. This will allow
the end-user to keep all records immutable as well as the updates associated with a
particular record, deteriorates the usage of fake documents and one could trace the
origin of a land.
oo As a part of EODB- State Business Reforms Action Plan (SBRAP) 2020, BWSSB has
published a user manual, process flow chart, application fee details, document
checklist, tariff details, and other requisite information on the department portal. The
service timelines and dashboard have also been developed and published by the
department. For Functioning of Karnataka Single Window (eBiz) Portal, KIADB has
ensured the development of a robust GIS system showing details on connectivity
infrastructure, utility infrastructure, truck infrastructure for all state industrial estates.
2. Impact Evaluation of Pashu Bhagya Scheme from 2015-16 to 2018-19
The Karnataka breeding policy has been implemented based on the suggestion from
Evaluation of Pashubhagya Scheme and Organized marketing system is being taken
up by formation of FPO’s. During 2019-20 30 FPO’s have been already formed and a
target to form 50 FPO’s is being taken up in the current year for the development of
organized marketing system in sheep/goat, piggery, and poultry.
3. Evaluation of Functioning of Karnataka State Police Housing and Infrastructure
Corporation Limited from 2010-21
Karnataka State Police Housing Corporation Limited (KSPHIDCL) is committed
to project implementation integration with Total Quality Management (TQM)
resulting in total quality in construction by adhering to total transparency and right
to information and striving continually to provide improved quality products and
services that are cost effective and delivered in time based on the suggestions from
the suggestions given from the evaluation of KSPHIDCL.

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4. Sustainable Urban Planning Strategies for Karnataka Cities :

The suggestions given in evaluation of Transfer of development Rights (TDR) scheme
in BBMP and Urban development Ministry (2012-13), BDA (Planning authority) has
started the process of digitization of the previous records and agreed to initiate steps
in this regard. BDA has published DRC issued list in their website. BBMP has agreed
to initiate steps to publish annual list of projects to be executed using TDR scheme.
Steps will be taken by both BBMP (public) and BDA (planning authority) to educate
the staff in the concerned department to handle TDR process efficiently.
Knowledge Partner/Technical Support/capacity building

oo KEA is a knowledge partner with Development Monitoring and Evaluation Office

(DMEO-NITI) for replicating KEA model across states.
oo Government of Assam visited KEA on 19th October 2022, and Government of
Uttarakhand on 27.06.2022 for learning about establishment and functioning of
Karnataka Evaluation Authority.
oo It is providing support to State Institute for Transformation of Karnataka (SITK),
Sustainable Development Goals Coordination Centre (SDGCC), Centre for Open Data
Research (CODR) and Nudge-Indian Administrative Fellowship Programme
oo It is involved in preparation of Karnataka Economic Survey and Human Development
Report
oo KEA staff is involved in building capacity of Evaluation Consultant Organizations and
Officers of the Government on Monitoring, Evaluation and Learning
oo Internship are taken up as per requirements of the Government on SDGs and topical
issues.

12.5 DIRECTORATE OF ECONOMICS AND STATISTICS

The Directorate of Economics and Statistics under Planning, Programme Monitoring

and Statistics Department is a data mining platform and is responsible for providing
the necessary data base for formulation of programmes and policies by the state. It has
been empowered to act as Nodal Agency by Government in respect of all the statistical
activities of the state and to provide advice to all the government departments on all the
statistical matters. Statistical data on various socio-economic activities of the state are
being collected, processed, analyzed and published from time to time. It also estimates
for Gross State Domestic Product (GSDP), Gross Districts Domestic Product (GDDP), Per
capita Income of the State and districts.

Karnataka at a Glance and District at a Glance

The Directorate publishes important publications called “Karnataka at a Glance”

and “District at a Glance” every year. From 2018-19 these publications brought out by
collecting the data from taluk level / district level by linking the Geographical Information
System developed by Karnataka State Remote Sensing Applications Centre (KSRSAC).
These publications contain information about 2000 parameters both static information
(Population Census, Agricultural Census and Livestock Census) and dynamic information

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related to the programmes of various development departments in addition to socio-

economic and geographical information of the districts / taluks. The information is
available on the website des.karnataka.gov.in and planning.karnataka.gov.in. Karnataka
at A Glance and Karnataka Compared with India is presented in Appendix 12.1 & 12.2.

These publications contain not only statistical information but also spatial maps which
indicate the taluks / districts which are less than the state average in the development
indicators, which will be useful for the planners, administrators to formulate policies and
plans for the backward taluks on priority basis. Based on the information of KAG / DAG
2021-22 the value of 49 indicators assigned by the Niti Ayog for Aspiration Taluks and 35
indicators identified by Dr. Nanjundappa Committee to determine the backward talukas
are worked out in order to give priority to those talukas which are less than the state
average in the development indicators.

The NRDMS Centres operating under the control of Zilla Panchayats cater the needs of
GPS mapping for various Government departmental activities in order to formulate and
implement Zilla, Taluk and Gram Panchayat Plans scientifically.

During 2021-22 the focus of the activities was on the following:

oo E-JanMa application was awarded with silver medal in skoch “SKOCH AWARDS
2022” in the category of e-governance. This uniform web based application has been
developed for the registration of Births and Deaths in the State.
oo Under Karnataka Pradhana Mantri Fasal Bima Yojane during 2021-22, as against
1,35,912 crop cutting experiment planned on the notified crops for all seasons, 1,07,147
experiments were conducted. For 2022-23, 1,25,328 crop cutting experiments for kharif
and rabi seasons have been planned of which 78,577 experiments were conducted
till date.
oo For the year 2022-23 it is estimated that (as per second advance estimate) 113.39
lakh hectares of area under agricultural crops will be grown as against 107.02 lakh
hectares cultivated during 2021-22. It is also estimated that 134.89 lakh tones of food
grain production will be produced for 2022-23 as against 128.73 lakh tonnes of food
grains produced during 2021-22.
oo DES has carried out 1% verification of data collected under mobile app based crop
survey during kharif – 2022-23.
oo To enumerate agriculture land holders and their area in the State, 11th Agriculture
Census is under progress.
oo As per 7th Economic Census conducted in the State 45.19 lakh economic enterprises
are in the State.
oo 10,37,182 births and 5,51,327 deaths were registered during 2022.
oo Karnataka is proud to be the first state in India to incorporate births and deaths
certificate registered in e-JanMa into block chain software from 01.04.2022. This
software prevents duplication of births and deaths certificates and its misuse. Issuing
of births and deaths certificates with Digital Signature has been made compulsory.

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oo With the aim of achieving 100% total medically certified deaths in Karnataka, uploading
of medical certificate of cause of death (form 4/a) has been made compulsory in
e-JanMa for all institutional deaths.
12.6 SUSTAINABLE DEVELOPMENT GOALS COORDINATION CENTRE (SDGCC)

Government of Karnataka has established a Sustainable Development Goals Coordination

Centre (SDGCC) as part of the Planning Department in partnership with United Nation’s
Development Programme (UNDP). SDGCC in coordination with Department of Planning
is spearheading SDG initiatives and driving the SDG movement in Karnataka.

SDGCC is a catalyst for introducing following innovative actions to achieve SDGs in the
state.

oo Karnataka Vision 2030: SDGs Vision 2030 – Strategies and Action Plan for Karnataka
with 600+ indicators.
oo Community Broadcast Programs: The first community radio network has been
initiated by SDGCC in Karnataka through community broadcast programs. Through
this program’s community radios are connecting to various government departments
to understand various government schemes and programs to the community. This
would help the community radios to communicate right information to educate
people at the grassroot.
oo SDGs for Youth: The First SDG Centre for Youth Engagement was established in
National Institute of Engineering -Mysore. Many more such initiatives will be continued
in the state. SDG Youth Engagement Campaign partnering with Academia and
Department of Youth Empowerment and Sports was initiated to build the capacity of
youth to engage in SDGs. SDGCC is closely associated with State NSS to implement
Amrutha Samudaya in 750 villages and Department of Youth Empowerment and
Sports for implementation of SYSY with technical support.
oo NGOs for SDGs: Initiated programs to engage NGOs in SDGs through NGO network.
The first capacity building program was organized for Kalyana Karnataka Districts.
Many more rigorous engagement programs would be continued.
oo SDGs for CSR: The first state to engage Corporate Social Responsibility (CSR) for
SDGs. A CSR matchmaking platform (Akanksha) to align CSR commitments to SDGs
has been created and functioning.
oo Media for SDGs: Media partnership and communication through TV media events,
Podcasts and radio events has been initiated.
oo Best Practices of Good Governance: Efforts are being made to replicate the good
governance practices.

12.7 STATE INSTITUTE FOR TRANSFORMATION OF KARNATAKA (SITK)

Government of Karnataka has reconstituted Karnataka State Policy and Planning

Commission on the lines of NITI Aayog as State Institute for Transformation of Karnataka
(SITK) on 6.8.2022, which is aimed at Nava Karnataka contribute significantly to Nava
Bharat (SDG 2030 and Vision 2047). SITK mainly focus on Decentralized Planning,

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Strategy formulation and Outcome based Evaluation for effective implementation

of outcome-based budgeting. A budget Rs. 150 crores annually have been allocated.
Hon’ble Chief Minister is the Chairman, vice chairman is a domain expert and Additional
Chief Secretary of Planning Department is the Chief Executive Officer. Organisational
structure also includes Ministers, Secretaries, 8 sectoral experts being selected through
a Grand challenge method normally used for START UPs suitably assisted by technical
divisions of planning and evaluation besides Eminent Government and Non-Government
Institutions as partner institutions.

The existing divisions of Planning Department such as Karnataka Evaluation Authority,

Technical Divisions, Library and Publication and Administrative Division provide support
to SITK. On the lines of Development Monitoring and Evaluation Office (DMEO) of NITI
Aayog, Karnataka Evaluation Authority (KEA) is renamed as Karnataka Monitoring and
Evaluation Authority (KMEA) to promote monitoring and evaluation ecosystem in the
state and take up all evaluations of schemes with a budget of more than 100 crores
once in plan period. In future KMEA will play a pivotal role for improving the efficacy of
programmes/polices.

WAY FORWARD

In order to improve the Good Governance Index of Karnataka from the existing 5.11 to 5.66
(Gujarat-Best performing state) and Ease of Doing Business, which is also part of Good
Governance Index, actions points are as follows:

oo Accomplishing the goal of Open Government Data for all State departments.
oo Onboarding all remaining departments on e-Governance and g-Governance
initiatives/platforms
oo Training the departments regarding the data standardization and Data Digitization
oo Create one-platform-for-all for the citizens to become aware of various government
initiatives and allow them to take part in various capacities.
oo Visualize and showcase the success of government achievements through success
stories to motivate other citizens to make use of government initiatives.
oo Institutionalization of Digital Dialogue Meetings at the grassroots level in supporting
decentralized planning and program implementation
oo During 2022-23, to KKRDB Rs. 1,500 Crore each is provided for mico plan and mega
projects, totalling to Rs. 3000 Crore.
oo The Directorate of Economics and Statistics, under Planning, Programme Monitoring
and Statistics Department is a data mining platform and is responsible for providing
the necessary database for formulation of programmes and policies by the State. At
present it emphasizes more on data collection and less on data analysis. Further, the
department has voluminous time series data on area, yield and production on various
crops which also requires analyst. Besides, the department has collected huge data
on 45.19 lakh economic enterprises as a part of 7th Economic Census. It needs analyst
to give us insight into that industrial scenario, productivity, geographical spread,
female participation etc. Hence, the department will be strengthened with the
domain experts in education and health, industries and commerce and Economics

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and statistics for data analytics in future. The focus will also be on improving the
quality of data and aligning the data with SDG goals.
oo SDGCC will involve in localizing SDGs through IEC and BCC activities to promote SDG
ecosystem upto GP level in collaboration with departments.
oo SITK to focus on Decentralized Planning, Strategy formulation and Outcome based
Evaluation for effective implementation of outcome-based budgeting with the
support of attached officers.
oo Increasing importance and usefulness of Evaluation of Schemes is evident that
Government of Karnataka has made a budget announcement that schemes / projects
with annual outlay more than Rs. 100 crores to be evaluated mandatorily once in
plan period (budget para 184 of 2021-22). Recommendations from evaluation studies
of Karnataka Evaluation Authority has provided useful insights to the departments
for mid-course policy corrections and improving the efficacy of the schemes apart
from policy formulation (IFS, Anti-superstition Act, promotion of financial literacy and
digital payment systems for SHGs, Convergence of the scheme with Swadhar Graha
and Ujjwala schemes is being done & the helplines 1091 and 181 are merged, Dedicated
feeders for IPs, Redesigned Bhagyalakshmi scheme allows for withdrawal of a portion
of the total amount of Rs.1.27 lakh to be withdrawn at the age of 18 for pursuing
education and the remaining at 21 years, provided suggestions for improving EoDB
ranking and so on)
oo Capacity building of staff on Data collection/integration, data analytics and evidence-
based policy making through PPP.
To conclude, good governance initiatives have positive impact on social and economic
development. It is predicted that digital economy’s contribution alone will increase
GDPfrom 7-8% to over 20% in the next 5 years at all India, which is even more in the case
of Karnataka State.

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Appendix 12.1 : KARNATAKA AT A GLANCE

Sl. No. Item Units 1961 1971 1981 1991 2001 2011

1 Geographical Area '000 Sq.Km. 192 192 192 192 192 192
Administrative Setup
2 Revenue Divisions No. 4 4 4 4 4 4
3 Districts -do- 19 19 19 20 27 30
4 Taluks -do- 175 175 175 175 175 176
5 Inhabited Villages -do- 26377 26826 27028 27066 27481 27397
6 Uninhabited Villages -do- 2972 2707 2362 2127 1925 1943
7 Towns -do- 231 245 281 306 270 347

Population as per Census 1961 1971 1981 1991 2001 2011

8 Total (in 000s) 23587 29299 37136 44977 52851 61095

9 Males -do- 12041 14972 18923 22952 26899 30967
10 Females -do- 11546 14327 18213 22025 25952 30128
11 Rural -do- 18320 22177 26406 31069 34889 37469
12 Urban -do- 5267 7122 10730 13908 17962 23626
13 Scheduled Castes -do- 3117 3850 5595 7369 8564 10475
14 Scheduled Tribes -do- 192 231 1825 1916 3464 4249
15 Density of Population Per Sq.Km. 123 153 194 235 276 319
16 Literacy Rate Percentage 29.80 a
36.83 a
46.21 b
56.04 b
66.60 b
75.36b

Females
17 Sex Ratio per 1000 959 957 963 960 965 973
males

18 Urban Population Percentage 22.33 24.3 28.89 30.92 33.99 38.7

State Income - at Current Prices 1970-71 1980-81 1990-91 2000-01 2011-12 2022-23
19 State Income Rs.Crore 2016 5587 20551 96348 606010 2241368
20 Primary Sector -do- 1063 2573 7626 31473 80051 331443
21 Secondary Sector -do- 418 1160 4734 18684 158299 406860
22 Tertiary Sector -do- 535 1854 8191 46191 313863 1314711
23 Percapita Income Rupees 696 1520 4598 18344 90263 301673

Agriculture 1970-71 1980-81 1990-91 2000-01 2010-11 2020-21

24 Net Area Sown '000 Ha. 10248 9899 10381 10410 10523 11453
25 Gross Cropped Area -do- 10887 10660 11759 12284 13062 14910
26 Gross Irrigated Area -do- 1355 1676 2598 3271 4278 6065
Gross Irrigated Area to Gross
27 Percentage 12.45 15.72 22.09 26.63 32.75 40.67
Cropped Area

Area under Principal Crops 1970-71 1980-81 1990-91 2000-01 2010-11 2020-21

28 Rice '000 Ha. 1170 1114 1173 1483 1539 1514

29 Wheat -do- 343 322 198 266 255 207
30 Jowar -do- 2224 1991 2155 1782 1244 765
31 Bajra -do- 562 564 425 462 309 226
32 All Cereals -do- 5971 5573 5415 5757 5446 5302
33 All Pulses -do- 1444 1531 1621 2047 2791 3190
34 Total Foodgrains -do- 7416 7104 7036 7804 8237 8493
35 Sugarcane Harvested Area -do- NA NA NA NA 437 452
36 Cotton -do- 1142 1012 596 552 547 837
37 Groundnut -do- 1027 790 1212 1063 846 735

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Production of Principal Crops 1970-71 1980-81 1990-91 2000-01 2010-11 2020-21

'000
38 Rice 2000 2258 2428 3847 4474 4718
tonnes

39 Wheat -do- 130 174 123 250 300 262

40 Jowar -do- 1565 1506 1282 1547 1346 904

41 Bajra -do- 211 192 203 342 292 316

42 All Cereals -do- 5235 5714 5705 10004 12257 13961

43 All Pulses -do- 511 488 539 956 1533 2066

44 Total Foodgrains -do- 5746 6202 6244 10960 13790 16027

45 Sugarcane -do- 8106 12127 20750 42924 42277 42317

46 Cotton c
-do- 570 597 640 855 1150 2316

47 Groundnut -do- 780 475 816 1081 600 720

Agricultural Census 1980-81 1990-91 2000-01 2005-06 2010-11 2015-16

48 No. of Operational Holdings in ''000s 4309 5776 7029 7581 7832 8681

in ''000s
49 Area of Operational Holdings 11746 12321 12307 12385 12162 11805
ha.

50 Average size of Operational Holdings in. Ha. 2.73 2.13 1.74 1.63 1.55 1.36

Live Stock Census 1977 1983 1990 1997 2007 2019

51 Total Livestock '000s 21800 24680 24968 30688 32883 30332

52 Total Poultry -do- 9696 12096 15694 21399 42433 59494

Forest 1970-71 1980-81 1990-91 2000-01 2010-11 2020-21

53 Forest Area '000 Ha. 3621 3838 3872 3828 4335 3073

Factories 1981 1991 2001 2011 2020-21 2021-22

54 Working Factories No. 4985 7768 9440 13889 20831 17192

55 Employees -do- 434202 777900 903895 1393910 1642799 1658847

56 Employees per lakh population -do- 1169 1730 1710 2280 2283 2241

Industrial 2008-09 2009-10 2010-11 2018-19 e

2019-20 e
2021-22e

Project investments - Rs.3.00 Crore to

Rs.50.00 Crore

57 Projects Approved No. 310 359 439 156 141 610

58 Investments Rs. in Crore 5182 7750 6880 12121 6567 44973

59 Employments No. 135623 115932 110505 72427 33708 133701

Project investments - above Rs.50.00 crore

60 Projects Approved No. 50 110 186 5 6 393

61 Investments Rs. in Crore 105266 288549 187186 4388 15045 237148

62 Employments No. 410842 284934 580161 51959 21028 195152

Electricity 1970-71 1980-81 1990-91 2000-01 2010-11 2021-22

63 Total Generation in Mus 4833 6389 12431 21985 47112 75671

64 Total Consumption -do- 3187 5189 12182 17860 37202 73418

65 Industrial Consumption -do- 2488 3864 5429 4882 8425 9743

66 Agricultural Consumption -do- 179 384 4486 7350 12802 22061

67 Domestic Consumption -do- 217 696 1803 3909 7893 13454

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Banking 1970-71 1980-81 1990-91 2000-01 2010-11 2021-22

68 Scheduled Commercial Banks No. 1190 2823 4245 4758 6291 10780

69 Deposits Rs. Crore 369 2042 9665 55592 349009 1382552

70 Advances -do- 275 1524 7985 32984 253121 308639

Education 1970-71 1980-81 1990-91 2000-01 2010-11 g

2021-22

71 Primary Schools No. 32630 35143 40208 50340 59428 62964

72 Enrolment '000s 4064 4974 6922 8581 7425 8200

73 High Schools No. 2002 2381 5020 8928 13447 17127

74 Enrolment '000s 483 713 1334 1955 2604 2182

Health 1970-71 1980-81 1990-91 2000-01 2010-11 2021-22

75 Hospitals (Govt.) No. 195 233 293 297 382 12591

Beds per lakh population

76 -do- 89 94 104 105 112 117
(Govt. Hosptials)

Demographic Status 1970-71 1980-81 1990-91 2000 2010 2020

77 Birth Rate '000s 31.7 28.3 26.9 22.2 19.2 16.5

78 Death Rate '000s 12.1 9.1 9 7.6 7.1 6.2

Per 1000
79 Infant Mortality Rate 69 69 77 58 38 19
Live Births

Transport 1970-71 1980-81 1990-91 2000-01 2010-11 2021-22

80 Railway Route Length Kms. 2806 2875 3093 3172 3172 3711

81 Total Road Length -do- 70383 109551 130924 154204 222431 288814

82 Motor Vehicles '000s 123 400 1433 3691 9930 27011

Co-operation 1980-81 1990-91 2000-01 2010-11 2020-21 2021-22

Primary Agricultural Credit Co-

83 No. 4871 4350 4388 4914 5927 5979
Operative Societies

84 Membership '000s 3692 4469 5245 8992 7868 7991

85 Total No. of Co-operative Socities No. 23159 25083 29930 35502 44642 46705

86 Total Membership '000s 8289 11800 16167 21534 23128 25218

Local bodies 1990-91 2000-01 2010-11 2019-20 2020-21 2021-22

87 Zilla Parishat/Panchayat No. 20 27 30 30 30 31

88 Taluk Panchyats -do- 175 175 176 227 227 235

89 Gram Panchayats -do- 2532 5692 5627 6010 5977 5955

90 Municipalities and Corporations -do- 177 209 219 287 306 319

Source:
1. Statistical Abstract of Karnataka 1960-61.1967-98,1970-71,1973-74,1983-84,1993-94,2000-05,2011-12 & 2020-22
2. Karnataka at a Glance: 1961-62, 1970-71, 1980-81, 1990-91, 2000-01,2009-10,2011 Census, 2011-12, 2012- 13,
2013-14, 2014- 15 & 2015-16. 2016-17, 2017-18, 2018-19, 2019-20 & 2020-21
3. Agricultural statistics 2020-21
4. Hand book of statistics on Indian states 2021-22
Note :
a. Population aged 5 years and above
b. Population aged 7 years and above
c. Bales of 170 Kgs. In lint form
e. Project investments - Rs.15 to 500 crores and above Rs 500 crores from 2016-17
f. 1-7th Statndard Primary and 8-10 Secondary Schools
g. 1 to 8 Standard Primary and 9 to 10 Standard Secondary Schools.

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 Good Governance Practices in Karnataka
517

Appendix 12.2 : KARNATAKA COMPARED WITH INDIA

Sl. No. Item Unit Karnataka India

Population as per 2011 Census:
1 Total '000s 61095 1210570
2 Males -do- 30967 623122
3 Females -do- 30128 587448
4 Rural Population -do- 37469 833463
5 Percentage of Rural Population to 61.33 68.85
total population
6 Urban Population '000s 23626 377106
7 Percentage of Urban Population 38.67 31.15
to total population
8 Sex Ratio Females per 1000 Males 973 943
9 2001-2011 Decadal Growth of Percent 15.60 17.70
Population
10 Literacy Rate Percent 75.36 73.00
11 Population of SC/ST (2011 '000s 14721 305633
population Census)
12 Total Workers (2011 Census) -do- 27873 481743
13 Geographical Area (2011Census) Lakh Sq.Kms. 1.92 32.87
14 Net Area sown 2015-16 ‘000 ha. 10006 139506
15 Gross Cropped Area 2015-16 -do- 12009 197054
16 Gross Irrigated Area 2015-16 -do- 3742 96620
17 % of Gross Irrigated Area to Gross 31.16 49.03
Cropped Area 2015-16
Area under Principal Crops (2020-21) :
18 Rice ‘000 ha. 1514 4507
19 Maize -do- 1762 986
20 Jowar -do- 765 424
21 Wheat -do- 207 3161
22 Bajra -do- 226 757
23 Total Food Grains -do- 8493 12934
24 Total Pulses -do- 3190 2883
25 Sugarcane -do- 452 486
26 Cotton -do- 837 1301
27 Groundnut -do- 735 609
28 Total Livestock - 2019 '000s 30332 535785
29 Forest Area -2021 ‘000 ha. 3073 713789
State/Nation Income at Current Prices (2021-22)
30 Gross Income Rs.Crore 2241368 27307751
31 Net Income -do- 20136748 24103540
32 Gross per capita Income Rs. 331981 197453
33 Net Per capita Income -do- 301673 170620

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COORDINATOR & NODAL OFFICER OF ECONOMIC SURVEY – 2022-23

# Chapter Title Coordinators Nodal Officers

Dr. Manjunatha.A.V
Executive Summary
Director, KEA, Planning Department

Sri. K.Narasimha Phani

1 State Income and Prices
Joint Director, DES

Dr. B. Janakiram
2 Fiscal Development and State Finances
Senior Director, Planning Department

Sri. M. Rajanna
3 Investment and Exports
Joint Director, DES

Sri. K.Gururaja Rao

4 Rural Development
Senior Director, Planning Department

Smt. Latha Devi

5 Urban Development
Joint Director, Planning Department

Sri. C. Kempiah Smt. T.S.Girija

Senior Consultant, DES Deputy Director, DES
6 Agriculture and Food Management
Smt. Manjula Rathod Smt. Madhuri S Tavaga
Joint Director, DES Deputy Director, DES

Smt. Shakuntala.C.N
Deputy Director,
Planning Department
Natural Resource Management and Smt. S.K Kalpana
7
Environment Director, Planning Department
Sri. Omprakash Raju
Deputy Director,
Planning Department

Sri. Suryaprakash Smt. Annapoorneshwari

8 Industry
Deputy Director, DES Assistant Director, DES

Sri. Venkatesh Smt. Shanthi

Skill, Entrepreneurship, Employment
9 Deputy Director, Joint Director,
and Labour Welfare
Planning Department Planning Department

Smt. Rajani.S
Deputy Director,
Sri. T.Shashidhar Planning Department
10 Economic Infrastructure Administrative Officer, KEA
Planning Department Smt. K.S.Nagarathna
Under Secretary, Institutional
Finance, Finance Department

Smt. Suma D Mirajkar

Joint Director, Planning
Department
Sri. C.Kempiah
Senior Consultant, DES
Smt. Savitha Dayanand
11 Human Development
Deputy Director, KEA,
Planning Department

Smt. Mangala.J Sri. Naramshimappa.G

Joint Director, DES Joint Director, DES

Sri D. Chandrashekaraiah
Director, Planning Department

Sri. Manjunath R,
Good Governance Dr. Manjunatha.A.V
12 Assistant Director, DES
Practices In Karnataka Director, KEA, Planning Department
Dr. Raghu, Research Officer, SITK

Smt. Geetha R., Office Assistant

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Karnataka Economic Survey 2022-23

 ECONOMIC
SURVEY

ECONOMIC SURVEY 2022-23

2022-23

V R

Department of Planning, Programme Monitoring and Statistics, AI

M S Building, Gate 3, Floor 7, Ambedkar Veedhi, Bengaluru

http://planning.karnataka.gov.in