Despite the political uncertainties, Karnataka is seeing a spurt in new investments in industrial sector with global firms like ArcelorMittal, Posco showing interest in setting up bases in the state. With the aim to attract more investments, the Karnataka government will hold the Global Investors meet in June this year. The state, according to government sources, is making sure to put in place the infrastructure like land, power and water before pitching in for new investments. V P Baligar, principal secretary, commerce and industry, Government of Karnataka discusses with Bibhu Ranjan Mishra on the mechanism the state has put in place to woo investors. Here are some excerpts...
Before wooing investment in the state, what initiatives the govt. is taking to put in proper infrastructure in place?
We have identified four industrial corridors in the state. Other than that, we are in the process of developing a land bank as a part of which we would acquire 50,000 acres of land — this means almost 2,000 acres in every district. We will keep the land bank ready so that if anybody wants to invest, we will give them the approval immediately. We will tell that all the infrastructure they need including land, water and power is available in the state which will help them in taking decisions fast.
Do you have any fast-track mechanism in place to help acquiring land faster for industrial purpose?
We have a fast-track mode wherein the industrialist can go and negotiate with the farmers directly. They can give the price that the farmers are asking for. Government officers will always be there to help both the parties. They will verify the land records and whether the person who is negotiating is really the owner of the land or not.
Recent examples show how companies have landed in trouble during land acquisition owing to farmers’ protest. What steps are you taking to ensure this does not happen?
We are acquiring the land only with the consent of the farmers and giving them more than the market value. For example near the International Airport in Devanahalli, we have given compensation amount ranging from Rs 57 to Rs 70 lakh per acre, which is one of the highest. Otherwise, they would not have got more than Rs 10 lakh per acre.
What about their rehabilitation?
We are trying to get jobs for their children as far as possible. We also help the children of the land losers to upgrade their skills and make them employable with the help of a skill development commission. For example, recently I had been to Telcon and Tata MarcoPolo factories in Dharwad and found that 95 per cent of their employees belong to Dharwad and surrounding districts. Most of the land losers have got at least one person from their family employed in these companies.
Even long after the operation of the Bangalore International Airport, the government has not been able to harness the areas surrounding the airport?
Around new international airports, we are acquiring 3,000 acres of land. This includes roughly 1,000 acres for an aerospace SEZ, 1,000 acres for hardware and another 1,000 acres for software parks.
Most of the states are now organising global investors’ meet. How different is your global investors’ meet going to?
Actually, Karnataka is the state to organise the Global Investors’ Meet in 2000. Every state has to do it because there is so much of oppor-tunities in India. If other states grow, we don’t have anything against it. We have to compete with our neighbours, and let them also win. We are inviting most of the industralised countries, Fortune 500 companies and Indian to industries, and hoping this to be a great success.
Which are the companies who are in talks with the state govt. to set up operations here?
We will only know about this in June 2010 when we are going to hold the global investors’ meet. These are all big groups and cash surplus with the capacity in investing in multiple states at a time. Many steel manufacturing companies who are best in the world have shown interest in investing in Karnataka. These include Tata Metaliks, MMTC and Kudremukh and SAIL. Some of them have also shown interest in mining ores, and have formally applied for that.
Where the state is heading as far as industralisation is concerned?
We would like to improve our position from one of the top five industrialised state to become the one or top two.
Why will someone come to Karnataka whereas they are getting the same or better benefits in states like Gujarat or Chhattisgarh?
We are the best in terms of availability of trained manpower. We have the best engineering and medical colleges, ITIs, polytechnic, and after all we have a cosmopolitan culture. So that kind of human resources, technology and R&D institutes that are available in Karnataka, are not there in other states.
Other than the heavy industries, what steps the govt. is taking to encourage the knowledge-based industries?
Our Knowledge Commission is doing a great job under the chairmanship of former ISRO chairman K Kasturirangan. The commission has given its proposals and has told all government departments on how to encourage knowledge-based industries and education. Besides, we have a mission which is being headed by C N R Rao to advise the government on science & technology.
