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Karnataka clears investment proposals of Biocon, PepsiCo and Manyata Promoters

Livemint:  May 26, 2016

Bengaluru: Projects by India’s largest biotechnology company Biocon Ltd, PepsiCo India Holdings Pvt. Ltd and Manyata Promoters Pvt. Ltd were cleared by a high-level clearance committee under the Karnataka government which met on Wednesday.

Biocon’s Rs.1,060 crore project to set up a new production unit in Bengaluru’s Anekal taluk got a clearance. The new unit will produce injectables, monoclonal antibodies and oral solid dosage, said a statement from the government.

PepsiCo India Holdings Pvt. Ltd plans to open a Rs.590 crore beverage and snacks manufacturing unit in Mysore district, some 150 km from Bengaluru, said the statement.

The committee has also cleared a Rs.561 crore expansion proposal of Manyata Promoters, a shareholder in Embassy Manyata Tech Park, a prominent information technology (IT) special economic zone (SEZ) in Bengaluru, along with realty firm Embassy Group and investor Blackstone Group Lp.

In total, these proposals worth Rs.2,211 crore have the potential to generate employment for 8,820 people, said the state government.

Karnataka is in a race with the rest of the states to attract investments and maintain its high-growth status. It has been reportedly losing out on big-ticket projects in the recent past due to delays in land acquisition and government approvals.

While two-wheeler maker Hero MotoCorp Ltd chose neighbouring Andhra Pradesh for setting up a factory to invest Rs.2,200 crore in 2014, Korean steelmaker Posco scrapped its plans to build a $5.3 billion steel plant in the state due to delay in land acquisition in 2013. E-commerce firm Amazon also decided to set up its warehouse in Telengana last year, as it was unable to resolve tax disputes with the Karnataka government.

But things have started to improve, claimed the government in a global investment summit held in February in Bengaluru. The meet recorded investor commitments of about Rs.3.08 trillion, of which projects worth Rs.1.7 trillion have already been cleared, said Karnataka’s industries minister R.V. Deshpande, during the summit.

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