Karnataska, a leader in innovations that make people’s lives easier, is trying newer methods to support the growth of infrastructure, which is the foundation for overall economic growth. The state government is planning an agri-business policy that will facilitate agricultural growth and beef up infrastructure in the rural areas.
The state is vying for private capital inflows to create basic amenities for agri and allied businesses and open doors for the state’s farm produce to go beyond provincial markets. According to the government, the agricultural and related sectors in the state offer a business opportunity of around Rs 50,000 crore.
While the state is betting big on rail, road and aviation as part of infrastructure development, capital investment in the agricultural and allied sectors is a focus area. Government data reveals that more than 70 per cent of the state’s population depends on farming and is concentrated in the rural belts of the state.
“We are working on creating inclusive growth. Agriculture is the chief livelihood for a majority of the population in the rural areas, and we want to develop agri-based infrastructure which will help the community in those regions,” said K V Raju, economic advisor to the Karnataka chief minister.
As part of the state’s growth plan for Vision 2020, it has even developed an Agribusiness Policy, which was formulated after interacting with industry stakeholders, including around 50 companies.
“The state government consulted companies and academics and it took us 18 months to conceive and develop this. Agriculture is one area which needs a huge investment in the form of capital investment. However, it’s often neglected by the private sector. Through the international agribusiness and food processing summit, we can project a clear picture of the opportunity in this sector to private companies and investors,” Raju added.
The state government has identified 4,000 hectares from its land bank of some 100,000 acres across the state for setting up agri ventures with farmers and private firms as stakeholders. As part of the innovation, the state is planning to clone the SEZ model and it intends to introduce Agribusiness Infrastructure regions, which will boost agriculture followed by infrastructure.
In another innovation on a people-oriented infrastructure development, Karnataka is also planning new guidelines and regulations in the use of agricultural land as equity in agro-based ventures to ensure that farmers retain the ownership of land.
According to the new policy to make farmers stakeholders in agri-business ventures even as they remain owners of their lands, it has the potential to generate around 300,000 direct jobs and 700,000 indirect jobs. “Karnataka is preparing a step ahead in infrastructure development. We are preparing a master plan for investment. We always look at the need of the state for the next 10-20 years, the kind of infrastructure needed for fostering that growth,” said Raju.
The need for infrastructure is huge and the state feels that it has to overcome many a road block. The first and primary concern of the state is support from the Union government and the Planning Commission. Presently, in most states, investors have to go through various agencies for obtaining sanctions, which is cumbersome and time consuming.
Karnataka has a single-window model for project clearances and an agency focused on this. The state’s suggestion for speedy growth is a regulator for PPP projects.
“The Planning Commission has to form a separate cell which can act as a single window for project clearance.
This will help speed up inter-departmental sanctions and in turn infrastructure development and the growth of the state,” Raju said.
