Karnataka's tier II cities miss out on boom

Karnataka's tier II cities miss out on boom
Bangalore, Oct 24, Deccan Herald News Service:

At a time when most of the progressive states in the country are nurturing ''boom cities'' with phenomenal economic and population growth rates, Karnataka has to be content only with its state capital Bangalore.

According to the latest paper on Census of India 2011(Urban agglomeration and cities - provisional population totals) released recently, Bangalore has been growing like never before, clocking one of the highest decadal growth rates among metros in the country. The total population in Bruhat Bangalore Mahanagara Palike (BBMP), as per the 2011 Census, stands at 84.25 lakh, up from 57.01 lakh 10 years ago.

However, the true story lies in tier II cities in several states which have achieved very high population growth rates and are emerging as investment regions outside their state capitals.

For instance, Surat in Gujarat. In 10 years, the population of the city has gone up by 20 lakh or 71 per cent. The latest census reveals that the city’s population is 45.85 lakh, almost 20 lakh higher than the 2001 findings.

Expansion of the city limit and economic development due to its booming diamond and textile industries have played a major role in achieving this growth.

Pune in Maharashtra is another case in point. The once centre of power of the Maratha Empire is emerging as a major economic hub and is slowly but steadily catching up with its big brother — Mumbai. The population is Pune as per the 2011 census is 50.49 lakh, up from 25.38 lakh just a decade ago. The city is emerging as a prominent location for information technology and manufacturing companies to expand.

Pune has the sixth largest metropolitan economy and the second highest per capita income in the country.

Karnataka, unfortunately, does not seem to have any such tier II boom cities. The state has now 26 cities with population of more than one lakh, but as per the census data not a single city has shown signs of emerging as a popular employment destination or economic hub.

Karnataka’s second largest city Hubli-Dharwad has added just 1.57 lakh to its population during the last decade. Bellary, with all its mining exports and related activities could witness a decadal growth rate of 22 per cent. The population of the city increased from 3.16 lakh in 2001 to 4.09 lakh in 2011.

Belgaum city, which was projected as the second capital of the State in the recent years, has witnessed a decline in its population by 18,000 in the last one decade.

Mangalore, which is considered as a commercial hub next only to Bangalore, has nothing to cheer when it comes to population growth. The port city’s population has come down from 5.38 lakh in 2001 to 4.84 lakh in 2011.

In sharp contrast, neighbouring Tamil Nadu has the city of Coimbatore. Riding on an infrastructural boom and growth in small scale industries, Coimbatore has emerged as one of the most industrialised towns of Tamil Nadu.

It has the highest GDP among the districts of Tamil Nadu, even ahead Chennai. The population in this city, also known as the ‘Manchester of South India’, increased from 14.46 lakh in 2001 to 21.51 lakh in 2011, registering a decadal growth of 32.77 per cent.

For the record, Bangalore is the only city in Karnataka with a population of more than 10 lakh (one million) and that of Hubli- Dharwad is 9.43 lakh.

Shopping malls are the new buzzword in Hubli

Shopping malls are the new buzzword in Hubli

Basavaraj F Kattimani, TNN Oct 22, 2011, 11.31AM IST

HUBLI: As a signal of growing urbanization, Hubli will have its first shopping mall with multiplex cinema halls and various food and retail outlets soon.

Construction of shopping malls is going in full swing on Gokul Road, Coin Road and Station Road and if everything goes well the city will have a mall in six months. People are already exited about the news. Anil Patil and his friends who work in various private companies here are of opinion that the shopping malls will change the people's lifestyle. "We do not have places to hangout with friends and shop during weekends here. Shopping malls will definitely solve the issue. Like in other cities, weekends will be more happening once the malls are opened," he said.

Two shopping malls are coming up on Coin Road. Of them the one which is coming up near old Ajanta theatre will have a multiplex cinema hall with four single screens. Amar Chhatni, owner of the shopping mall coming up on Coin Road, said, "There is a huge demand for shopping malls, particularly multiplexes cinema halls in the city as many families are expecting better facilities to keep themselves entertained during the weekends.

"Most of them spend a major chunk of their earning for recreational activities and to fight the stress and tension. The term weekend is becoming a buzzword here as more people are looking to spend quality time with their family and friend on Saturdays and Sundays. And more and more businessmen are also coming forward to invest in the city. We expect the malls will be a hit in Hubli," he said.

Dharwad supermarket cries for HDMC attention

Dharwad supermarket cries for HDMC attention

TNN Oct 9, 2011, 07.13PM IST

DHARWAD: Did the officials of Hubli-Dharwad Municipal Corporation (HDMC) misguide the elected representatives regarding the status of the proposal to develop the supermarket in Dharwad? This was the question which hogged the centrestage at the press conference called by Hubli-Dharwad (West) MLA Chandrakant Bellad and mayor Poorna Patil in Dharwad on Saturday.

JD(S) members launched an agitation three days ago demanding development of the supermarket. They have alleged that rift within the ruling BJP in HDMC and lack of political will has resulted in the market being neglected.Bellad and Poorna had convened the press conference to claim that the proposal for the development of supermarket is at the final stage of clearance at the government level and that the work will begin soon.Bellad said the matter will come up before the cabinet in its next meeting for the approval and tendering process will start once the cabinet's approval is obtained. However, when media persons brought to the notice of the MLA and mayor the fact that the proposal sent by the HDMC had been rejected by the government, the duo failed to give a convincing explanation.HDMC commissioner Trilokchandra had clearly stated at the general body meeting of the corporation held last week that the government had rejected the proposal sent by the HDMC asking it to send a fresh one based on public-private partnership (PPP) model.

The commissioner had also stated that another fresh proposal would be sent to the government on the desired model.When reporters asked the MLA whether the fresh proposal had been sent and whether it had been approved by the ministry of urban development he replied that it had been cleared and awaited cabinet approval.When the reporters wondered how all this could happen in just a week's time when there were hardly four working days in October, the MLA had not convincing reply. Mayor Poorna Patil was also unable to give information about the exact status of the proposal.

Hubli to be promoted as the next IT hub

Hubli to be promoted as the next IT hub

Hindu BusinessLine

HUBLI, OCT. 3:

The Karnataka State Electronics Development Corporation Limited (Keonics) is once again making efforts to push north Karnataka as the next IT hub in the State.

With Bangalore's saturation and companies looking for alternate locations for expansion, the Keonics has woken up to promote Hubli as an IT destination. In order to tap investments, it has lowered the rentals at IT Park Hubli.

Keonics quoted the NASSCOM survey findings that Hubli-Dharwad has 38 per cent cost advantage among the tier II cities in the country. This will be Keonics' second attempt to push for the north Karnataka region as an IT destination.

According to Mr H. Devanand, Manager, IT Park-Hubli, the Keonics has come out with a special rental package to encourage IT industries to set up base in Hubli.

“In order to attract them, especially the software developers, we have further reduced rent rate and fixed at Rs 5 a square feet a month. Also we may relax conditions placed before,” he explained.

Currently Hubli-Dharwad houses companies like IonIdea Inc, Sankalp Semiconductor, Nabros, Neilsoft, Pro-Solutions, ClickHubli, Web Dreams and Able Design Engineering Services. Few new companies are being incubated inside the campus of BVB College of Engineering and Technology.

Keonics' move comes after two companies successfully set up their operations.

Mr Manohar Joshi, Director-Systems, IonIdea said, “The major benefits from business point of view, Hubli offers cost of living advantage of 25 per cent to 30 per cent of margins. We can afford to keep the bench and groom the freshers and make them industry-ready at relatively much lower cost.”

“We have also discovered that the communication level has improved well in recent past among fresh graduates and they can be groomed to face global clients effectively and efficiently. It looks to be a workable place to establish ITES and professional services from Hubli in a cost effective manner,” he added.

In the recent past, connectivity – both in terms of logistics and communication has improved in the town, said Mr. Ashok Shettar, a senior TiE-Hubli member and Principal, BVB College of Engineering & Technology.

However, what is most attractive in the town and surrounding areas today is the good work-life balance one gets. “Now people are increasingly complaining about quality of life in Bangalore,” said Mr Shettar.

Simple life and low cost of living coupled with good opportunities for development and growth make Hubli a suitable destination for the IT sector.