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Karnataka Industrial Areas Development Board Act 1966 – UPSC Prelims & Mains Notes

Introduction

The Karnataka Industrial Areas Development Board (KIADB) Act, 1966 was enacted to promote the orderly establishment and development of industries in designated areas of Karnataka.

The Act provides for the creation of industrial areas, acquisition and disposal of land, and the establishment of KIADB, which oversees industrial development.

Objectives

• To identify and develop industrial areas in Karnataka.
• To provide infrastructure like roads, water supply, electricity, and drainage to industrial areas.
• To facilitate industrial growth through planned development.
• To acquire land for industrial use under the Land Acquisition Act.
• To manage and regulate land and industrial estates.
• To provide financial and infrastructural support to industries.

Key Provisions of the Act

Chapter I: Preliminary

• Short Title: Karnataka Industrial Areas Development Act, 1966.
• Extent: Applicable throughout Karnataka.
• Commencement: The Act came into force on May 26, 1966.
• Definitions:
• Industrial Area: Area notified by the state government for industrial development.
• Industrial Estate: Area where factories and buildings are constructed for industrial use.
• Board: Karnataka Industrial Areas Development Board (KIADB), established under the Act.

 Chapter II - Declaration of Industrial Areas

• Section 3: The State Government can declare any area as an industrial area through a notification.
• Section 4: The State Government can alter the industrial area by adding or removing regions.

Chapter III: Establishment & Constitution of KIADB

• KIADB (Karnataka Industrial Areas Development Board) is the nodal agency for industrial development in Karnataka - (Section 5).
• Section 6: Defines composition of the Board:
  • Chairman: Secretary of Commerce and Industries Department.
  • Members from Finance, Housing, Urban Development, Pollution Control Board, Industrial Development, and Town Planning.
  • The Board also includes two nominees of the Industrial Development Bank of India (IDBI).
• Section 7-8: Terms of office, meetings, and conditions of service of members.
• Functions of KIADB:
• Develop industrial areas.
• Acquire land for industrial development.
• Provide industrial infrastructure such as roads, water, electricity, and drainage.
• Develop technology parks and industrial townships.

Chapter IV - Functions & Powers of KIADB

• Section 13: The Board is responsible for:
  • Developing industrial areas.
  • Providing infrastructure and amenities.
  • Managing industrial estates.
  • Collaborating with private and government entities.
• Section 14: General powers include:
• Land acquisition, leasing, selling.
• Providing amenities like roads, water, housing.
• Entering contracts and legal agreements.

Chapter V: Finance, Accounts, & Audit

• Sources of Funds- Section 18-19:
  • Grants & loans from the Karnataka government.
  • Income from land sales, leases, and other transactions.
  • Rents from industrial estates.
• Power to Borrow Section 20-24:
  • KIADB can borrow money from the open market or financial institutions.
• Budget & Expenditure:
  • Annual financial statements must be submitted to the State Government for approval.
  • KIADB has authority to spend funds for industrial development.
• Auditing:
• Accounts are audited annually, and reports are submitted to the State Legislature.

Chapter VI - Land Eviction & Rent Control

• Section 25-26: The Act applies the Karnataka Public Premises (Eviction of Unauthorized Occupants) Act, 1974 to remove illegal occupants from industrial areas.

Chapter VII - Acquisition & Disposal of Land

• Section 28: The State Government can acquire land for industrial purposes.
• Section 29-30: Compensation to landowners is based on Land Acquisition Act, 1894.
• Section 31: KIADB leases or sells land to industries under specific terms and conditions.

8. Chapter VIII - Miscellaneous Provisions

• Section 32-34: Government can hand over land to KIADB for industrial purposes.
• Section 35: Board officials have power to enter premises for inspection.
• Section 36: Unpaid dues can be recovered as land revenue.
• Section 40-42: The Government and KIADB can make rules and regulations for better governance.

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Key Amendments

1. 1978 Amendment: Gave KIADB the power to demolish unauthorized constructions.
2. 1987 Amendment: Expanded Board composition for better coordination.
3. 1992 Amendment: Included Karnataka State Financial Corporation in the Board.
4. 1997 Amendment: Allowed private sector participation in infrastructure projects.
5. 2000 Amendment: Allowed KIADB to repossess land in case of lease violations.

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Current Affairs & Relevance for UPSC

1. Recent Land Acquisition Issues:

   • KIADB has been involved in multiple land disputes where farmers and industries have contested compensation.
   • Supreme Court judgments on fair compensation under the Right to Fair Compensation and Transparency in Land Acquisition Act, 2013.

2. KIADB & Karnataka’s Industrial Policy:

   • Karnataka’s New Industrial Policy 2020-2025 promotes:
     • Ease of Doing Business through KIADB reforms.
     • Special industrial corridors like Bengaluru-Chennai Industrial Corridor (BCIC).

3. Sustainability & Environmental Concerns:

   • KIADB’s industrial projects face scrutiny over deforestation, pollution, and displacement.
   • The Karnataka State Pollution Control Board (KSPCB) ensures industries meet environmental standards.

4. FDI & Startups:

• Karnataka ranks high in Foreign Direct Investment (FDI) due to industrial incentives from KIADB.
• Bengaluru’s startup ecosystem benefits from KIADB’s support in Tech Parks.

UPSC Prelims & Mains Focus Areas

Prelims MCQs Preparation

1. Which of the following is the main objective of the Karnataka Industrial Areas Development Board Act, 1966? a) To regulate agricultural land
   b) To promote tourism
   c) To develop industrial areas ✅
   d) To provide housing loans

2. Under KIADB Act, who heads the Board? a) Chief Minister
   b) Secretary of Commerce & Industries ✅
   c) Governor
   d) Finance Minister

3. Which amendment allowed KIADB to demolish unauthorized structures? a) 1992
   b) 1978 ✅
   c) 1987
   d) 2000

Easy Level Questions

1. When was the Karnataka Industrial Areas Development Board (KIADB) Act enacted?

a) 1956
b) 1966
c) 1976
d) 1986

Answer: b) 1966

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2. What is the primary objective of the KIADB Act, 1966?

a) Land reforms and agricultural development
b) Urban development and municipal governance
c) Establishment and orderly development of industries
d) Promoting tourism in Karnataka

Answer: c) Establishment and orderly development of industries

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3. Which body is responsible for implementing the Karnataka Industrial Areas Development Board Act, 1966?

a) Karnataka Urban Development Authority
b) Karnataka Industrial Areas Development Board (KIADB)
c) Karnataka Housing Board
d) Karnataka Rural Development Board

Answer: b) Karnataka Industrial Areas Development Board (KIADB)

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4. Which of the following Acts does NOT apply to KIADB lands?

a) Karnataka Land Reforms Act, 1961
b) Karnataka Rent Control Act, 1961
c) Karnataka Forest Act, 1963
d) Karnataka Shops and Establishments Act, 1961

Answer: b) Karnataka Rent Control Act, 1961

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Moderate Level Questions

5. Which of the following statements about KIADB is correct?

1. KIADB is responsible for acquiring land for industries in Karnataka.
2. KIADB is a private company promoting industrial growth.
3. KIADB provides industrial infrastructure such as roads, water, and electricity.
4. KIADB can lease or sell land to industries.

a) 1 and 2 only
b) 2 and 3 only
c) 1, 3, and 4 only
d) 1, 2, 3, and 4

Answer: c) 1, 3, and 4 only

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6. Under which chapter of the KIADB Act is the process of land acquisition defined?

a) Chapter II
b) Chapter IV
c) Chapter VII
d) Chapter IX

Answer: c) Chapter VII

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7. Which department’s secretary is the ex-officio chairman of KIADB?

a) Department of Finance
b) Department of Commerce and Industries
c) Department of Revenue
d) Department of Urban Development

Answer: b) Department of Commerce and Industries

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8. Which amendment of the KIADB Act allowed land acquisition for private sector infrastructure projects?

a) 1978 Amendment
b) 1987 Amendment
c) 1997 Amendment
d) 2000 Amendment

Answer: c) 1997 Amendment

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Difficult Level Questions

9. Which of the following is NOT a function of KIADB?

a) Developing industrial estates
b) Allocating land to industries
c) Providing loans for small businesses
d) Maintaining industrial infrastructure

Answer: c) Providing loans for small businesses

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10. What power does KIADB have regarding unauthorized constructions on its land?

a) It can impose a lifetime ban on industries operating there.
b) It can demolish unauthorized constructions and recover costs.
c) It can nationalize the industry operating there.
d) It can impose criminal charges under the IPC.

Answer: b) It can demolish unauthorized constructions and recover costs.

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11. The KIADB Act allows the Board to acquire land for which of the following purposes?

1. Industrial development
2. Infrastructure projects like roads and airports
3. Research and development centers
4. Agricultural promotion

a) 1 and 2 only
b) 1, 2, and 3 only
c) 1, 3, and 4 only
d) 1, 2, 3, and 4

Answer: b) 1, 2, and 3 only

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12. Which of the following amendments included the Managing Director of Karnataka State Financial Corporation (KSFC) in KIADB?

a) 1978 Amendment
b) 1987 Amendment
c) 1992 Amendment
d) 2000 Amendment

Answer: c) 1992 Amendment

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13. Which of the following is a source of funding for KIADB?

1. Grants from the Karnataka Government
2. Income from leasing industrial plots
3. Loans from international banks
4. Revenue from property taxes

a) 1 and 2 only
b) 1, 2, and 3 only
c) 2, 3, and 4 only
d) 1, 2, 3, and 4

Answer: b) 1, 2, and 3 only

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14. Which statement about KIADB’s land resumption powers is correct?

a) KIADB can take back leased land if the lease conditions are violated.
b) KIADB cannot take back land once it is leased.
c) KIADB needs a court order to resume possession of land.
d) KIADB can take back land only if an industry shuts down permanently.

Answer: a) KIADB can take back leased land if the lease conditions are violated.

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15. The KIADB Act was amended in the year 2000 to provide which additional power?

a) Power to create Special Economic Zones (SEZs)
b) Power to acquire agricultural land without compensation
c) Power to resume possession of leased premises in case of violations
d) Power to conduct environmental impact assessments

Answer: c) Power to resume possession of leased premises in case of violations

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Bonus Question (Current Affairs – 2023-2024)

16. Which of the following recent developments is related to KIADB?

a) Bengaluru-Chennai Industrial Corridor land acquisition
b) Promotion of organic farming clusters
c) Development of new railway lines under Gati Shakti
d) Implementation of the Karnataka Renewable Energy Policy

Answer: a) Bengaluru-Chennai Industrial Corridor land acquisition

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Mains Answer Writing Practice

1. Discuss the role of KIADB in promoting industrial development in Karnataka. Highlight its significance in the state’s economic growth.
2. Critically analyze the impact of land acquisition under the KIADB Act on farmers and industrialists.
3. KIADB has played a crucial role in Karnataka’s industrialization. Examine its challenges in ensuring sustainable and inclusive growth.
4. Land acquisition by KIADB often faces opposition. Suggest reforms to make the process more transparent and equitable.

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