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Karnataka approves Rs 23,383 crore worth projects ahead of global investor meet

Livemint:  January 05, 2016

Bengaluru: The Karnataka government on Monday said it had approved six investment proposals worth Rs.23,383 crore at a high-level meeting chaired by chief minister Siddaramaiah, ahead of the state’s global investor summit scheduled for next month.

Among the proposals that got the nod is the Rs.14,800 crore investment by Karnataka Solar Power Development Corp. Ltd for setting up a 2,000 megawatt (MW) solar park in Tumkur district, some 70 km from Bengaluru.

Of the other two fresh investment proposals, one worth Rs.1,889 crore, is by Minerva Steel Pvt. Ltd to build a steel plant, and another worth Rs.1,352 crore is by Wadi Cement Co. Pvt. Ltd to build a cement plant.

The rest of the approvals were given for expansion projects, including a Rs.4,570 crore investment by Udupi Power Corp. Ltd to increase its power generation unit’s capacity in Udupi from 1,200 MW to 2,800 MW, a Rs.620 crore expansion proposal by Tata Power Kirloskar in Kolar and a Rs.150 crore proposal by Toyota Textile Machinery Pvt. Ltd in Bengaluru.

Once they take off, the investments will generate employment for 10,407 people, the government said.

As Karnataka prepares for the global investor summit, the government is targeting a total of Rs.1 trillion in investment in the next 40 days, K. Ratna Prabha, additional chief secretary in the industries department, told Mint in an interaction.

“We have already received proposals worth Rs.62,770 crore for the meet, out of which Rs.24,577 crore has been cleared. The rest is in the pipeline. Our aim is to get Rs.40,000 crore or so in the next 40 days to reach a realistic target of Rs.1 trillion in this meet,” said Ratna Prabha.

While the chief minister clears projects under Rs.100 crore, those involving larger investments are approved by the state’s high-level clearance committee.

To be sure, the approval means the government has cleared certain requirements for the project to take off. It would take a considerable time for the commitments to actually translate to projects on the ground.

Mint reported on 25 December that only 9% of the commitments made at the state’s 2012 Global Investors Meet had been realised.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.