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Business News/ Industry / Manufacturing/  Companies seek to invest Rs3 trillion in Karnataka
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Companies seek to invest Rs3 trillion in Karnataka

State industries minister R.V. Deshpande says the commitments have a potential to generate 670,000 jobs in Karnataka

The venue of Invest Karnataka 2016 meet in Bengaluru. Photo: PTIPremium
The venue of Invest Karnataka 2016 meet in Bengaluru. Photo: PTI

Bengaluru: The first global investors’ meet held by the Congress government in Karnataka—titled Invest Karnataka—recorded investor commitments of about 3.08 trillion, much higher than the government’s expectation of 1 trillion, but far below the commitments recorded in the last two editions of the summit.

The last two editions, held in 2012 and 2010, organized by the previous Bharatiya Janata Party (BJP) government in the state, recorded commitments of 7.6 trillion and 4.73 trillion respectively. However, few of these commitments translated to actual investments, Mint reported on 25 December 2015 (bit.ly/1X62PM9).

The commitments have a potential to generate 670,000 jobs in the state and the state government will “not leave any stone unturned" to help these projects take shape unless the investor defaults on their plans, state industries minister R.V. Deshpande said.

He said the government has already cleared 1,201 of these projects through single-window clearance committees and other means—that is 56% of the total commitments, or in other words, projects worth 1.7 trillion. The majority of these projects were given approval over the last two months since the government started campaigning for the summit.

“We have appointed an official to follow up on all projects above 200 crore. We also commit to have all projects approved by high power committee and single window committee before 15 May 2016," said Deshpande.

He also said the government will set up a “Karnataka Investment Company", an entity to liaise with investors and promote investment.

The rest of the commitments, to the tune of 1.33 trillion, are in the form of 121 memorandums of understanding and expression of interest, said the minister.

The 3.08 trillion is from private companies alone and does not include over 1 trillion government investments announced by Union ministers Nitin Gadkari and Ananth Kumar at the summit’s inauguration on Wednesday.

To be sure, this only means the government has given primary approval to these projects and it still got to be vetted by other departments for land, water and electricity.

In 2012, the then government had said it managed to sign 730 memorandum of understanding (MoUs) with an investment outlay of 7.6 trillion. But documents from the industries department show that only 249 were actually MoUs worth 2.84 trillion and the rest were expressions of interest or registration of interest. Investors dropped 118 projects (30%) committed in that meet, meaning the implementation rate was only 28%, Mint reported.

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Published: 04 Feb 2016, 11:16 PM IST
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