Karnataka eyes Rs 3 lakh crore as funds pour in

Political rivalry took a backseat on Wednesday as central ministers batted for Congress-ruled Karnataka, inviting global businesses to invest in the southern state.

The stage was set at Invest Karnataka, the state's jamboree to showcase opportunities and attract investment, for commitments of over Rs 3 lakh crore from global investors.

Top business leaders such as Ratan Tata, chairman emeritus of Tata Sons; Anil Ambani, chairman, Reliance Group; Azim Premji, chairman, Wipro; and N R Narayana Murthy, the founder of Infosys, were all presented at the summit, promising investments in the state.

The biggest commitment came from Sajjan Jindal of the JSW group, who promised to invest Rs 35,000 crore over the next three to four years in the state. Adani committed Rs 20,500 crore to boost electricity generation in the power-starved state. His company would add 1,600 MW of thermal power in Udupi and 1,000 MW in solar generation.
 
Ambani announced opening an aerospace research unit named after his father Dhirubhai Ambani in Bengaluru. Premji said Wipro would add over 25,000 people in new centres in Bengaluru, adding to its existing workforce of 55,000.

Infosys would set up a new centre in Hubbali, its fourth in Karnataka.

Union ministers from Bharatiya Janata Party - Arun Jaitley, Nitin Gadkari, Ananth Kumar and Venkaiah Naidu - articulated the advantages the state offered to prospective business, such as educational institutions, human resource, a strong base in technology, the cosmopolitan culture in Bengaluru and the start-up boom.

"We may be (from) different parties… but we are all working for the welfare of India," said Union Urban Development Minister Venkaiah Naidu.

But, they were also acutely aware of the infrastructure hurdles in the state, such as Bengaluru's gridlocked roads that often cause interminable snarls, lack of national highway connectivity, and power blackouts that have forced companies to declare deferred holidays for their factories.

Transport Minister Nitin Gadkari recalled a plea last month from Premji and Biocon founder Kiran Mazumdar-Shaw to ease the traffic problems in Bengaluru, which records an average vehicle speed of 5-10 kmph at most places. "I'm trying to solve this problem. I know this is a very difficult task. If the Karnataka government can share land acquisition costs, we can help with the projects," Gadkari said. "Karnataka is the growth engine for the development of country. We believe in sabka saath, sabka vikas (with everyone, growth for all)."

Finance Minister Jaitley asked Karnataka to also focus on manufacturing jobs and grow at two to three per cent faster than the country. "We cannot allow federalism or democracy to become an obstacle. Easier decision making, quick passage of laws… all factors are going to attract investment. Investors look at regions which they feel have progressive policies," he added.

Chief Minister Siddaramaiah, who also handles the finance portfolio, reciprocated to Jaitely, saying, "A visit to Bengaluru could not have come at a better time as you prepare for your third Budget."

In 2000, Karnataka was the first to launch an investor meet, an event replicated by other states such as Tamil Nadu, Gujarat, West Bengal, Andhra Pradesh and Telangana, to showcase investment opportunities. The state has a history of voting in a party that is in the Opposition in the Centre. In 2010, when the United Progressive Alliance was in power, Bharatiya Janata Party leader B S Yeddyurappa conducted a global investors' meet.

Several business leaders spoke of investor stress. "Karnataka has always been about hi-tech, aerospace, IT, biotechnology and the electronics industry. It remains the place that is easiest to justify making an investment. It has human capital, growing infrastructure… but there is stress because of the growth," said Ratan Tata, chairman emeritus of Tata Sons.

The Tatas had to pull out of a venture in 2000 to build the Bengaluru international airport because of bureaucratic and political pressure.

Infosys Chairman Emeritus N R Narayana Murthy asked the government to make Bengaluru a more liveable place, with reduced congestion and easy commuting easy.

"My request to minister (R V) Deshpande and the chief minister is to help us make Bangalore more liveable, provide whatever infrastructure facilities are needed to ensure that there is access to educational facilities for industry professionals and for their children. Make commuting easy, have adequate healthcare facilities and leisure given that Bangalore contributes 38 per cent of IT industry contribution to the country," he said.