Karnataka eyes big ticket investments from global firms
By IANSWednesday, June 2, 2010
BANGALORE - Karnataka is rolling out a red carpet to global firms and India Inc for big ticket investments in diverse sectors to put the southern Indian state on a growth trajectory.
Inspired by the success of Gujarat in snapping up Rs.7 lakh crore (Rs.7 trillion) global investments in 2009, the two-year-old Bharatiya Janata Party government is pulling out all stops to ensure that its own version of Global Investors Meet (GIM 2010) here June 3-4 results in a windfall of Rs.5 trillion (Rs.5-lakh crore) investments for the next four-five years.
The state government has already enticed a galaxy of high-profile investors like the Mittals, Birlas, Tatas, Ambanis, Hindujas, the Ruias and the Jindals to cash in on the investment opportunities across the state in growth sectors such as steel, energy, road and rail connectivity, seaports and airports, tourism, manufacturing and services in the knowledge area.
“As the world’s largest steel maker, ArcelorMittal founder Lakshmi N. Mittal will be the star investor at the GIM to pronounce the setting up of a six million tonnes per annum steel plant near Bellary in north Karnataka with an upfront investment of Rs.30,000 crore (Rs.300 billion),” state Industries Minister Murugesh R. Nirani told IANS.
Home-grown entrepreneurs like Azim Premji, Krish Gopalakrishnan, Vijay Mallya, G.M.R. Rao, G.V.K. Reddy and G.R. Gopinath will also be at the meet to reaffirm their commitment to stay invested in the state.
In the run-up to the mega event that was put off twice due to the global meltdown and floods in north Karnataka last year, the state government has approved investment proposals worth Rs.3.36 trillion (Rs.336,185 crore), with iron and steel sector taking the lion’s share of Rs.2.20 lakh crore (Rs.2.2 trillion), followed by power (Rs.79,140 crore), IT/BT (Rs.19,188 crore) and cement (Rs.17,857 crore).
“We are targetting Rs.4.5-5 trillion worth of investments for the state over the next four-five years. Besides global investors such as ArcelorMittal, Lafarage, Shell and Nestle, Birlas, Ambanis, Tatas, Hindujas, Ruias and Jindals are set to invest in the state in core infrastructure sectors like cement, energy and gas,” an upbeat Nirani said.
Being held a decade after the first GIM in 2000, when the then Congress government attracted global investments worth Rs.27,000 crore (Rs.270 billion), the second GIM is showcasing Karnataka as “One State: Many Opportunities” at the sprawling Bangalore Palace grounds in the heart of this tech hub.
“About 3,000 delegates from the world over have been invited to participate in the GIM where a record 400 memoranda of understanding (MoUs) will be signed between prospective investors and the state government,” Nirani said.
Besides the core infrastructure sector, the state government is confident of getting assured investments in aerospace and automobile, agro and food processing and tourism sectors.
Organised by the state industries department and the Karnataka Udyog Mitra, with the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI) as associate partners, the summit will witness presentations on investment opportunities in the state across sectors, including infrastructure, energy, electronics, tourism, IT and biotechnology.
A massive exhibition, covering about 20,000 sq ft, will showcase the multiple advantages, incentives, tax reliefs and pro-industry policies of the state government, including single-window clearance, land bank and other facilities for speedy execution of projects.
“Karnataka is an ideal place to live in and invest, with right combination of opportunities and advantages for any manufacturing or service industry to succeed. The state government’s pro-active policies and approach ensure speedy execution of the projects and smooth operations thereafter,” Chief Minister B.S. Yeddyurappa said at a preview of the GIM.
Leader of Opposition in the Rajya Sabha Arun Jaitley will inaugurate the GIM in the presence of Law Minister M. Veerappa Moily, global investors, top industrialists, policy makers and officials. Food Processing Industries Minister Subodh Kant Sahai will release the district-level profiles of the sector in the state.
