Bengaluru: The Karnataka government Wednesday decided against acquiring 13,788 acres as planned earlier due to lower demand, poor implementation of projects and protests from landowners.
A total of 121,286 acres and 13 guntas (around 120 square yards) were identified under the 2008-09 Suvarna Karnataka Development Corridor Program to create a land bank to attract big ticket investments. Of this, preliminary notifications were issued for 80,182 acres and 35 guntas, while final notification was issued only for 40,924 acres and 13 guntas.
Any land required for industrial development has to be first identified and then preliminary notifications are issued. After this, a final notification is issued and then allocated to the interested industry.
The government said the acquisition of 13,788 acres was not financially feasible both to landowners and the Karnataka Industrial Area Development Board (KIADB).
In Karnataka, demand in some places was low while there were protests from landowners in places where lands were fertile and there were dwellings.
“Hence, even after 6-7 years, these areas could not be developed,” T.B. Jayachandra, Karnataka Law and Parliamentary affairs Minister said on Wednesday, after the Cabinet meeting in Bengaluru.
The state’s global investor meets (GIM) have always claimed trillions of rupees in investment commitments. However, many projects never took off.
GIM 2010 claimed to have received over Rs.3 trillion worth of investment commitments and GIM 2012 Rs.7.6 trillion. The success rate of GIM 2010 was 28% while the success rate for GIM 2012 was only 9%, Mint reported on 13 September.
Even the latest edition of GIM saw Rs.1.33 trillion worth of investment commitments but according to data, only a few have taken off.