Mangaluru (The Hindu): Worried over a stark difference between commitments and realisation of investments during the 2010 and 2012 Global Investors’ Meet (GIM), the State government has opted for implementable projects during this ‘Invest Karnataka- 2016’.

The government has identified key sectors, which can be implemented in a short period. The State has proposed to showcase several projects in 12 key sectors such as infrastructure, agro-business, manufacturing, aerospace/defence, IT/BT, pharma, tourism, and textile projects to investors during the three-day event beginning February 3.

Minister for Large and Medium Industries R.V. Deshpande, who held the first GIM in 2000 during the S.M. Krishna regime, has proposed to showcase 145 projects that would attract investments across the State during the event.

During the last two years, after the Congress came into power, more than 450 projects with an investment of Rs. 1.2 lakh crore have been sanctioned.

Previous GIMs
An analysis of data shows a difference between proposed investments and realisation on the ground. Actual realisation of committed investment by investors was 51 per cent in the 2010 GIM and 39 per cent in the 2012 GIM.

Of 275 projects proposed during the 2010 GIM, only 58 were implemented, 116 under implementation, and 101 dropped. In the 2012 GIM, 209 projects were proposed, 28 implemented, 104 under implementation, and 77 dropped.

Sources said that the world’s biggest steel giant, ArcelorMittal, has backed out from its much-hyped investment of $ 6.5 billion in a steel plant in Ballari district.

Though there are a good number of projects implemented and under progress, the district-level data shows that a large number of projects were dropped owing to issues related to land acquisition, lack of market conditions, and inadequate infrastructure, including power.

The State has been allegedly losing out on big-ticket projects in the recent past owing several incentives offered by neighbouring States. While two-wheeler maker Hero MotorCorp chose the neighbouring Andhra Pradesh, Korean steelmaker Posco scrapped its plans to build a $ 5.3 billion steel plant in the State owing to delay in land acquisition in 2013. E-commerce firm Amazon.in also decided to set up its warehouse in Telengana owing to tax issues with the State government.

Infrastructure
With several investors complaining about infrastructure bottlenecks such as shortage of energy, inferior roads and poor rail links to tier-two cities, the State is planning two corridors — Chennai-Bengaluru-Chitradurga Investment Corridor (CBCIC) and Bengaluru-Mumbai Economic Corridor (BMEC) — which will have an influencing zone of 150 km on each side of the corridor.

Besides the corridors, the State has 152 thriving industrial areas and 60 special economic zones. Another 15 industrial areas are planned to be operative in the next few years.

A proposed tunnel bypass road at the Shiradi Ghat for providing seamless travel between Bengaluru-Mangaluru, which would cost Rs. 12,000 crore, would also be showcased. The existing ghat stretch on the highway is 47-km long. Japan International Cooperation Agency has already shown interest.

Developing the existing markets, outer ring road, elevated roads in Bengaluru, roads in tier-two cities, and establishment of modern abattoirs in urban local bodies are top priority during the meet.

“We are focusing on more realistic investments,” said Mr. Deshpande. It remains to be seen how these proposed investments will be actually implemented after the investors’ summit.

Photo credit: The Hindu