Karnataka preparing for onslaught of investments: Global Investor Meet on June 3 and 4

Mr V P Baligar, Principal Secretary, Commerce and Industries, Government of Karnataka, during his address at the ‘Conference on Brand Karnataka’ informed that investments totalling US$ 44 billion have already been tied up and more than 200 industries are keen on active participation at the Global Investors’ Meet to be held in Bengaluru on June 3 and 4. The meet will showcase the improving investment-friendly clime of the State.

According to Mr Aroon Raman, the newly elected Chairman of the Confederation of Indian Industry (CII) Karnataka State Council, efforts are on to showcase Karnataka as an investment destination, prior to the Global Investors Meet, through road-shows to be held in Singapore, Korea and Europe.

At the meet, about 15-20 information technology and biotechnology projects will also be showcased, according to Mr Ashok Kumar Manoli, Principal Secretary, Department of Information Technology and Biotechnology, Government of Karnataka. The projects looking for investment include five biotech projects, three IT park ventures and the Information Technology Investment Region project near the Bengaluru airport.

Amongst the majors keen on investing into the state are ArcelorMittal, Posco and Lafarge, domestic companies such as ONGC, GAIL, Reliance and NMDC.

Meanwhile, the State performance has been lauded as developments are becoming visible on sectoral fronts. Karnataka's annual Plan outlay for 2010-11 has been earmarked at US$ 6.82 million, about 19 per cent higher than the revised estimates of 2009-10. Newer project opportunities that are coming up include the gas-based power plants around the Dabhol-Bidadi gas pipeline and the US$ 6 billion steel project by ArcelorMittal in Bellary, and opportunities for a world-class MRO (maintenance, repair and overhaul) facility in the aero sector. Karnataka's per capita income too has increased from US$ 398.3 to US$ 536.4 from 2002-03 to 2008-09 and the State is ranked 9th among all the States. State's literacy rate is 66.64 per cent at the end of Eleventh Plan.

Earlier, briefing the Chairman of Planning Commission, Mr Montek Singh Ahluwalia, the state Chief Minister, Mr B S Yedurappa said that priorities of the Plan include infrastructure (20 per cent of the outlay), human resources development (22 per cent), assistance to farmers (15 per cent) and welfare of weaker sections (11 per cent). The rest will be divided as energy sector with 13 per cent, transport 12.3 per cent, irrigation 11.3 per cent, education 7.8 per cent and the social sector 45.4 per cent of the total outlay. The State had been able to record 6 per cent growth rate in revenue collection. Mr Yeddyurappa said the State's Plan size had been fixed at US$ 6.83 billion in 2010-11. The Planning Commission, Reserve Bank of India (RBI) and Thirteenth Finance Commission have also lauded the fiscal management by the State Government, he said.