The projects have the potential to create nearly 5,000 new jobs
This system is part of the state's efforts to ease regulations and attract more investments into Karnataka
Bengaluru: The Karnataka government on Monday said that it has approved investments of ₹22,419 crore of three different proposals involving electric vehicle (EV) and lithium-ion battery manufacturing that have the potential to create nearly 5,000 new jobs.
Two proposals of Elest Private Limited of ₹14,255 crore and ₹6,339 crore of Elest Pvt Ltd and ₹1,825 crore project by Hyunet Private Limited were cleared by the chief minister -led State High Level Clearance Committee (SHLCC).
Karnataka has been proactively approving new investments into the state to help ease its deeply distressed economic condition. The state is also trying to get more investments into renewable and sustainable energy related projects and build Karnataka as an EV hub and has also launched a policy to this effect.
However, Bengaluru-headquartered mobility services provider, Ola, had decided to set up its ₹2400 crore EV manufacturing plant that has a capacity to produce two million vehicles per year and employ over 10000 people in neighbouring Tamil Nadu.
The SHLCC cleared investments proposals totalling ₹26,659 crore that has the potential to generate 13,341 jobs in the state, the government said in a statement.
The SHLCC also cleared two large hybrid solar power projects totalling ₹4240 crore that have the potential to create 8460 new employment opportunities, according to the statement by the government.
The state’s investor-friendly image took a beating after violence broke out at Apple Inc’s manufacturing partner, Wistron’s facility in Narasapura on 12 December. At least two state government-commissioned reports have found violations on Wistron’s part including in payment of wages and practices followed by staffing firms that supply workforce to the Taiwanese mobile manufacturer. Wistron has also acknowledged its mistakes, removed its vice president who oversees India operations and initiated a restructuring exercise. Apple has put Wistron on notice and suspended new business to the company after its investigations into the incident also pointed to violations on Wistron’s operations in the plant.
Karnataka chief minister B.S.Yediyurappa on Monday launched the Affidavit Based Clearance system, that is part of an amendment made to the state's facilitation act, to enable investors to establish their businesses without any clearances/approvals from various departments for the first three years.
This system is part of the state's efforts to ease regulations and attract more investments into Karnataka.
The ABC system was launched to cut delays in securing approvals from multiple government departments that has adversely impacted investments in the past and led to the state losing out on several big-ticket projects.
Trade unions and others say that such a system will only lead to more violations by companies as requisite checks may not be carried out before the start of a project.