The Karnataka government has so far realized 1.8% or Rs3,261 crore of the Rs1.78 trillion worth of approved projects signed before the biennial Invest Karnataka 2016 (earlier known as Global Investors Meet) in February.
Out of the 1,080 pre-approved projects announced before the summit, only 54 have established industrial units while the remaining are in different phases of approval, R.V.Deshpande, large and medium scale industries minister for Karnataka said in a written reply to the legislative assembly in the ongoing winter session of the state legislature in Belagavi.
In his reply, Deshpande said that out of the 122 memorandum of understanding (MoUs) amounting to Rs1.28 trillion, 42 have been approved but did not specify the quantum of investment.
Delays in file clearances, land allotments and farmer protests in the state have resulted in several big ticket projects setting up shop in neighbouring Andhra Pradesh and Telangana among other states.
Not even one among the 40 energy and 29 tourism related projects —totalling over Rs63,000 crore—have been implemented so far, according to data provided with his response to the lower house.
Out of the 21 IT/BT approved projects valued at Rs6,729 crore, only three projects valued at Rs1,250 crore has been implemented.
To be sure, big ticket projects are given a gestation period of 3-5 years.
Even by this estimate, the state government has not enjoyed a very high hit rate since 2010.
The state government had approved to exclude 13,788 acres of land, under preliminary notification, from further acquisition due to poor rate of implementation of projects, drop in demand and quell the protests from landowners.
The success rate of the first investor meet held in 2010 by the then BJP government, was only 28%, Mint reported in December 2015. Only 108 out of 389 projects committed at that meet have taken off so far, while investors dropped 118 committed projects (30%). Out of the 751 projects committed at the BJP-government’s second Global Investors Meet in 2012, only 68 projects, or 9%, have been realised on the ground. While investors dropped 58%, or 439 projects they committed at the 2012 meet, the remaining 244 are still under implementation. Indeed, replying to a question in the state assembly on 26 November last year, Deshpande himself has said that less than 15% projects cleared by the state in the last seven years saw the light of day, Mint reported on 13 September.