Karnataka energy sector booms amid Ukraine-Russia war

The minister pointed out that unlike previous two editions of GIM, more than 90 per cent of investment commitment has come for projects beyond IT capital Bengaluru.
Image used for representational purpose (Photo | EPS)
Image used for representational purpose (Photo | EPS)

BENGALURU: The Ukraine-Russia war has had a positive impact on the Invest Karnataka 2022 Global Investors’ Meet (GIM) which concluded on Friday.

A whopping 71 per cent of the total investments have come for the energy sector with renewable energy slated for 38 per cent and 33 per cent for manufacturing green hydrogen and its derivatives at the three-day event.

This massive share of investments in the energy sector is attributed to the Ukraine-Russia war-induced energy crisis that the world is facing, and the business honchos are looking at opportunities in the export of green hydrogen.

Large and Medium Industries Minister Murugesh Nirani on Saturday informed the media that a total of Rs 9.82 lakh crore of investments have been committed in various sectors that will create over six lakh jobs.

As many as 667 projects have been approved for investments including 96 in renewable energy and nine in hydrogen manufacturing with an investment of Rs 3.28 lakh crore and Rs 2.86 lakh crore, respectively.

“The war in Ukraine and the energy crisis resulted in many Western and East Asian countries turning to hydrogen as a source of energy,” said Industries & Commerce Commissioner Gunjan Krishna, adding that since it's an intensive mechanism that requires a lot of renewable energies the projects have come up by looking at the potential in the export of hydrogen.

Nirani attributed this enthusiasm in investing in the energy sector to the massive cost reduction in setting up and running renewable energy generation plants from Rs 18 crore per megawatt to just Rs 3.5 crore per megawatt.

However, he rubbished allegations that the government had the plan to close down the thermal power generation plants in Karnataka.

Nodal officers to approve MoUs

The minister pointed out that unlike the previous two editions of GIM, more than 90 per cent of investment commitment has come for projects beyond IT capital Bengaluru. “We will improve waterway, airway, railway, and roadway connectivity. There are eight airports that are operational in the state and three more will come up soon,” Nirani said.

Coordination committee

Nodal officers will be appointed to implement/approve the MoUs within 90 days. Nirani informed that a coordination committee with nodal officers will be set up to ensure and help proposals with huge investments turn into reality and look into issues pertaining to NOCs.

The list of projects approved will be sent to the nationalised and other banks concerned, besides the Indian Renewable Energy Development Agency (IREDA). The investors with skilled labour will also be supported by roping in educational institutions, the minister added.

Rs 9.81 l Crore Total investments committed
Rs 2.83 l Crore Approved investments
Rs 5.41 l Crore MoUs signed

Adani Group committed
B1 lakh crore investment in cement, power, city piped gas & edible oil
JSW group announced B57,000 crore in steel, green energy & greenfield port

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