Bangalore Jul 29: Karnataka Chief Minister B S Yeddyurappa today appealed to Prime Minister Manmohan Singh to intervene and put on hold the proposal to change the SEZ Scheme through Direct Tax Code as it would send a wrong signal to international and domestic investors.

In a letter, copy of which was released to the media here, he said "SEZ Act intended to provide a long term stable policy regime which was absolutely essential for such projects. "By proposing to change the SEZ Scheme through the Direct Tax Code, we are sending a very wrong signal to international and domestic investors." ''In case this change is brought about, we would have no alternative but to withdraw Karnataka State SEZ Policy. I earnestly request that SEZ Scheme must not be altered through the proposed Direct Tax Code. Draft DTC has already created uncertainty and many investors have put their investment on hold", he said. This uncertainty needs to be removed straightaway by issuing instructions that SEZ Scheme shall not be altered by Direct Tax Code,'' the Chief Minister stressed in his letter.

CM appeals to PM for allocation

Karnataka Chief Minister B S Yeddyurappa today appealed to Prime Minister Manmohan Singh to allocate domestic natural gas to the state.

In a letter, copy of which was released to the media here, he said ''as the demand is increasing, I request you to kindly allocate at least 20 MMSCMD of natural gas from the KG Basin or any other source on emergency basis to Karnataka.''

Mr Yeddyurappa said there was need for a comprehensive amendment in the natural gas resource allocation policy and the consequent impact of the same on the gas prices requires. ''While some states were pre-disposed to cheaper domestic natural gas sources, some at even subsidized rates, states such as Karnataka were yet to receive their first allocation of domestic natural gas for their growth needs,'' he added.

Mr Yeddyurappa said Karnataka was growing at a faster rate than the national average. He said natural gas has emerged as a key energy source for the economic development of any region. Its availability at sustainable price was crucial to achieve as well as maintain the growth rate.

Our Correspondent