BENGALURU: The three-day Invest Karnataka 2016, which concluded on Friday, left the state government on a high note with the response far more encouraging than it had perceived earlier.
So much so that Industries Minister R V Deshpande announced that they will be forming a corporate entity made up of government officials and private participants to attract investments. K Ratna Prabha, Additional Chief Secretary, Commerce and Industries, told Express that they tried to ensure that the Memoranda of Understanding (MoU) that were signed were the ones where they could verify that the investor was serious.
“We had told them to start applying three months earlier. In fact, applications were coming in as late as February 2. But the MoUs that were signed were the ones which we had already verified as genuine. No fresh ones that came during the Invest Karnataka event itself have been cleared yet. It would not have been possible for us to have any clarity on how serious they were,” she said.
The investors who have approached the government during the meet have been asked to apply now. A total 1,080 applications were received in the run up to the meet, out of which 990 pertained to industries, 29 to tourism, 21 IT/BT and 40 engineering.
About 50 per cent of these have already been cleared.
Stalls at the Expo
What the government was pleasantly surprised about was the amount of business that the stalls at the expo generated.
Stalls by small and medium industries, especially those set up by women, appears to have done a robust business, with many claiming to have finalised tie-ups for supply. Government stalls too did good business with the Karnataka State Small Industries Development Corporation (KSSIDC) receiving more than 300 applications for plots.
In addition, the Karnataka Industrial Areas Development Board (KIADB), which hosted a GIS-based information system on its website declaring land available with them, received 350 applications.
Britannia Industries Ltd has decided to tie-up with Karnataka Milk Federation (KMF) in a Rs 300-crore deal to buy excess milk while a UK team has requested the government for land around the city to set up a state-of-the-art hospital and medical research facility.
According to Sampath Ram, immediate past president of FKCCI, who worked closely with the CM’s office for Invest Karnataka, said this time around, almost all those who needed land were genuine businesses. They had solid plans and were not there for the land. But he did not rule out that there might have been a small percentage of people who would have come just to get hold of land.
“The lease clauses framed by the KIADB itself would be the first hurdle to such people who came probably hoping to grab some cheap land. The lease is only for 99 years. Also, the land can be used only for industrial purposes and no conversion is possible. The land can only be sold to another industry,” said Ram.
He added, “Even if the land is transferred, all the existing structures have to be removed and it has to be in the same condition in which the industrialist would have got the land.”
All these aspects included in the clauses make any attempt to grab land in the guise of starting an industrial unit unattractive.
‘GIM Bagged Investment’
Chief Minister Siddaramaiah said the Global Investors’ Meet (GIM) was successful in attracting leading players and investors to the state, which proved that the Congress government has created an atmosphere conducive for industries in the past two years.
“The event also proves that Karnataka is a preferable destination for investors in tourism, infrastructure, aerospace, power, IT/BT, food processing. Investments will also be made in backward regions of the state,” he added.
He said the government will appoint a senior bureaucrat to follow up on the plan to build roads for Bengaluru within three months, to ensure that investments are made, to avail benefits from the government.
lowdown of the meet
‘Invent in Karnataka, Innovate in Karnataka, Invest in Karnataka’ was the mantra over three days
MoUs for 121 projects valued at Rs 1.33 lakh crore signed
Largest investment came from the energy sector amounting to Rs 57,038 crore
Saw over 100 ready-to-invest projects being presented
Over 300 exhibitors participated at the event spread over one lakh sqft.
About 50 per cent of the 5,000 delegates participating were from SMEs and start-ups and entrepreneurs, including women
Seven countries, including a 75-member team from UK, participated