BackYediyurappa hopes to turn investment proposals at Davos into reality
Yediyurappa, who has been camping at the ski resort in Davos, at the ongoing WEF, said corporations evincing interest include Dassault Systemes, steel maker ArcelorMittal, Bharat ForgeThough Karnataka has been one of the preferred investment destinations, hurdles in land clearances, delays in approvals and providing basic infrastructure has been a big let-down for investors
PremiumBENGALURU : A delegation to the World Economic Forum (WEF) led by Karnataka chief minister B.S.Yediyurappa on Wednesday said it has received positive responses from large corporations to invest in the southern state.
Yediyurappa, who has been camping at the ski resort in Davos, at the ongoing WEF, said corporations evincing interest include Dassault Systemes, steel maker ArcelorMittal, Bharat Forge, Lockheed Martin, Lulu group and Novo Nordisk, among others. Some of these companies already have presence in Bengaluru and are expected to take up fresh investments, according to a statement by the state government on Wednesday.
Though Karnataka has been one of the preferred investment destinations, hurdles in land clearances, delays in approvals and providing basic infrastructure has been a big let-down for investors looking at the southern state that has one of the largest information technology and startup ecosystems and a large base for aviation and biotechnology, producing a large number of skilled labour.
“I am serious on this score and my officers will work over time to facilitate your investments,“ Yediyurappa reportedly told investors who met him at the Karnataka pavilion at WEF.
In a statement, the government said the most concrete assurance came from French firm, Dassault Systemes that already has a significant presence in Bengaluru. Company vice president Florence Verzelen said she would initiate measures to set up centres of excellence. “We will train nearly 2000 youth in each centre every year who will be ready to take up the skilled jobs in big companies," the government said in its statement, attributing it to Verzelen.
Data from the Periodic Labour Force Survey (PLFS) shows that unemployment in Karnataka stands at 4.8% for people above 15 years of age, lower than the national average of 6%. Karnataka has been under pressure to create more jobs to soak up the large number of students passing out of professional and other courses. But delays in processing investments and clearances has cost the state several big ticket projects.
Delays in ironing out long winding issues on land availability for industries may have cost Karnataka a chance to convert investments totalling over ₹39000 crores and a chance to create over 80000 jobs, state government data shows.
Of the 142 proposals totalling ₹49379.13 crore, approved between 2013 and 2019 under section 109 of the Karnataka Land Reforms Act for setting up new projects or existing manufacturing units in sectors such as automobiles, textiles, mining among others, over 90 of them remain non-starters including 23 that have been dropped completely.
With agriculture activity having taken a hit due to floods and droughts, the state would have to smoothen its approval processes to help realise investment proposals and create more jobs.
Steel baron, Laxmi Mittal, discussed investing in Karnataka, where he had in 2010 assured to invest ₹30000 crore to set up a steel plant at mineral rich Ballari district. While Mittal’s 2010 plans failed to take off in Karnataka, the state government has said that steel major is now expected to take steps to start a research and development centre in Bengaluru.
The government also said that Lulu group chairman Yusuf Ali would soon initiate measures to invest ₹2000 crore in Karnataka in the logistics sector.
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