Business Standard

Karnataka banks on pro-investor policies

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Sanjay Jog Mumbai

The Karnataka government has launched an image makeover exercise by marketing new investment policies that focus on transparency and accountability.

The D V Sadananda Gowda dispensation had recently launched a Right to Services Act to bring in greater accountability among government officials, besides transparency in administration to deliver promised services within a given time. The government is in the midst of amending the Facilitation Act, which envisages more financial powers to officials concerned to grant clearances to projects.

This apart, the government plans to bring in an Infrastructure Bill. Gowda, who was in the city for a global investors’ meet roadshow scheduled in Bangalore on June 7 and 8, said the government had taken a slew of decisions to grant mining leases after the report by the Lok Ayukta on the mining scam. “However, we are waiting for the relevant order from the Supreme Court and also for the clearances from the empowered committee of the central government,” he said. “We have already filed our affidavits in the apex court which has convened hearing in the matter on March 16.”

 

Gowda noted his government had already banned mining exports, but it was “promoting value addition”.

The state was rocked by mining scam and the controversy over de-notification of government lands. He admitted that some of the mining projects, proposed in the state during the global investors’ meet held in 2010, are stuck and waiting for the apex court order. He reiterated that despite the mining scam, Karnataka continues to be the most investor-friendly state.

He said, “The government has made concerted efforts to introduce a number of friendly steps to bolster global investments in the state. Of the Rs 3.92 lakh-crore investment proposals received for 389 projects in the 2010 global investors’ meet, 38 projects have already been commissioned.”

He added, “However, some steel and power projects are unable to make substantial progress for want of necessary raw material.”

According to him, the ensuing global investors’ meet is expected to attract investments of Rs 6 lakh-crore.

Gowda downplayed the recent ultimatum given by his predecessor, B S Yeddyurappa, for reinstating him as the chief minister.

“I am concentrating on expediting the development process and attracting investments in Karnataka. There is no disturbance, especially from within the party,” he said. “Some minor problems here and there will not have any impact on the implementation of projects.”

Meanwhile, Murugesh R Nirani, minister of large and medium industries, said the state wants to increase spending on infrastructure development to nine per cent from three per cent. The government would spend Rs 30,000 crore annually for the next 10 years on infrastructure development.

“The state will shortly introduce an infrastructure Bill to facilitate, regulate and mitigate risk in infrastructure projects,” he said. “The purpose of this bill is to provide a legal framework for infrastructure development through public private partnership and to enhance confidence in potential investments. Nearly 207 infrastructure projects with investment of Rs 2.18 lakh-crore have already been identified.”

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First Published: Mar 08 2012 | 12:58 AM IST

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