The Karnataka government on Thursday signed memoranda of understanding (MoUs) for a total investment of about Rs 5 lakh crore at the inaugural day of the two-day Global Investors’ Meet (GIM 2012). The second edition of the event saw GVK Group, Tata Group, Suzlon, Embassy Group, Welspun, Chettinad Cement, Future Group, Ascendas, JSW Steel, Bosch and Rajesh Exports among other major investors.
“We had set a target of attracting Rs 5 lakh crore worth of investments in this edition of global investors’ meet. However, we have exceeded our own target and have signed MoUs for over Rs 5 lakh crore worth of investments,” Murugesh R Nirani, minister for large and medium industries told reporters.
He said the MoUs were signed in the areas of infrastructure, energy, mining, education, tourism, hospitality and automobile, among others.
The major investment proposals signed on Day-1 include the Rs 29,000-crore investment proposal for setting up merchant power projects in the state. Suzlon has proposed to invest Rs 20,000 crore on renewable energy, Rajesh Exports (Rs 11,986 crore), TCS (Rs 4,326 crore), Ultratech Cement (Rs 6,090 crore), Grasim Industries (Rs 395 crore), Embassy Group (Rs 14,370 crore), Ascendas (Rs 10,400 crore), Welspun (Rs 9,900 crore), Toyota Kirloskar (Rs 500 crore), Bosch (Rs 500 crore), General Electric (Rs 300 crore), Future Group (Rs 891 crore) Sun Forest City (Rs 9,300 crore), JSW Steel (Rs 6,090 crore), MRPL (Rs 8,500 crore) and HAL (Rs 600 crore), among others.
Nirani said the government also signed MoUs for setting up of 18,000 Mw of power projects and development of high speed railway network with a Japanese firm. “The Japanese company would be preparing a detailed project report by the end of December this year for the high speed railway network, which is expected to cost Rs 100 crore per km. We wish to develop the railway network between Bangalore-Mysore, Bangalore-Belgaum and Bangalore-Gulbarga initially. The Japanese company would be sourcing funds for the project from the World Bank and there will be no financial commitment from the state government,” he said.
To provide basic infrastructure facilities to industrial estates across the state, the state government would be spending Rs 2,000 crore in the next two years, he said adding that the basic amenities would include roads, water, electricity and drainage among others.
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Earlier, delivering the special address at the inauguration, N R Narayana Murthy, chairman emeritus, Infosys Technologies, expressed his distrust on the investment policies of the Karnataka government. He said the state government needed to create investor confidence to bring in investments. He also said the state had to go a long way to become a thriving hub for large-scale investments. “There is a need to diversify the focus beyond IT (information technology) sector and from Bangalore. We need friendly policies for sunshine sectors and it would promote diversification,” he said.
Chief Minister D V Sadananda Gowda said the state government would increase its spending on infrastructure sector from the present 3.2 per cent of the State Gross Domestic Product to 8-9 per cent during the 12th Five-Year Plan period starting 2012-13.
“Karnataka has taken positive steps to acquire and build a land bank near Devanahalli to establish a software park, an electronic hardware park and an aerospace park to harness the vast potential in this sector,” he said at the function, which was attended by a galaxy of Indian industry members, overseas delegates, foreign dignitaries, among others.
He said the state had allocated 4,000 acres of land for the development of science city in Challakere, about 200 kms from Bangalore, where the prestigious Indian Institute of Science would locate its second campus.
The government has also initiated a project to develop a Nano technology park over 100 acres. This park is expected to attract significant investment from nano technology-based industries.
Union Minister for Tourism Subodh Kant Sahay invited the captains of Indian industry to invest in the tourism sector, which has a vast potential to create jobs in the country.
The absence of other two central ministers — M Veerappa Moily (minister of corporate affairs) and Virbhadra Singh (minister of micro, small and medium enterprises) was conspicuous.
As a part of the mega event, the state government has also organised a three-day expo at the venue to showcase the state, its human and natural resources, pro-active industrial policies, investor-friendly incentives, land bank and infrastructure for attracting investments from global and domestic firms.
Being held for the first time at the sprawling Bangalore International Exhibition Centre (BIEC) on the city’s outskirts, the two-day biennial event attracted about 6,000 delegates from across the country and abroad.
The event witnessed the presence of dozens of the Indian industry and global majors and high-profile delegations from Japan, Mexico and Bavaria in Germany at the grand inaugural ceremony.
Among the captains of the industry who graced the occasion and spoke included Infosys chairman emeritus N R Narayana Murthy, Aditya Birla Group Chairman Kumar Mangalam Birla, Tata Steel Vice-Chairman B Muthuraman, ONGC Chairman Sudhir Vasudeva, Larsen & Toubro (L&T) chief executive K Venkataramanan, JSW Group chairman Sajjan Jindal, Bharat Forge Chairman B N Kalyani, GVK Reddy, John Flannery, President and CEO, GE India, among others.
From abroad, Japanese vice-minister of economy, trade and industry Keiro Kitagami, Bavaria Deputy Prime Minister Martin Zeil, and General Motors (GM) managing director Lowell Paddock were present.