Ahead of Karnataka polls, Bommai govt keen to score high on investments

Of proposals worth Rs 9.8 trillion in last year's investors' summit, 52 per cent have been realised, so far, claim state officials

As Karnataka prepares for the Assembly elections, the Basavaraj Bommai government’s relentless efforts for a better investment report card appear to be benefiting the state’s industrial sector, even as it faces the Opposition’s criticism. During the recently concluded investor meeting, the state received investment proposals of around Rs 9.8 trillion, with projects worth 52 per cent of that amount already in the works.
 

A couple of days ago, the 61st meeting of the State High Level Clearance Committee, chaired by the chief minister, approved 18 projects with a total investment of Rs 75,393.57 crore; among those was a Rs 8,000-crore investment plan by the world’s largest electronics manufacturing services (EMS) player Foxconn Technology.
 

This was a shot in the arm of the state BJP government as there was confusion around Foxconn’s investment plan after the Telangana and Karnataka governments simultaneously claimed that the Taiwanese giant had signed up to make big investments in their respective states to manufacture electronics. The company, however, later said that there were no “definitive agreements” in place, but then wrote to the chief ministers of both states, stating that it was committed to its agreements.
 

Major opposition parties in Karnataka had been accusing the BJP government of misleading the public through hasty announcements, publicity stunts, and photo-ops.
 

“All of our investment plans are moving faster. We have so far realised 52 per cent of the proposals from the total Rs 9.8 trillion cleared by the global investors meeting in the state late last year,” said a top state industry ministry source. This contrasts with previous realisation levels, which never exceeded 15 per cent. Only 14 per cent of the Rs 3.94 trillion worth of MoUs signed in 2010 were realised; in 2012, the strike rate dropped to 8 per cent (of Rs 6.7 trillion). In 2016, it was 15 per cent of Rs 3 trillion.

Of the total Rs 9.8 trillion worth of MoUs signed, around Rs 2.9 trillion came for the manufacturing of green hydrogen and derivatives. The major investors in the state reportedly included ACME (Rs 51,865 crore), ReNew (Rs 50,000 crore), ABC (Rs 50,000 crore), and JSW (Rs 43,470 crore).
 

According to officials, every effort is being made to assist investors throughout the investment process. The 18 projects approved on Monday include 10 new projects, five expansion projects, and three new projects. “We are delighted that the state has received such a significant investment. In this regard, the meeting approved proposals for green hydrogen, ethanol production, wind energy power plants, electrical and electronic item assembly, lithium batteries and electric vehicles, and cement and steel companies in the state,” an official said.