Suzlon signs EoI to develop 2,500 mw of wind power capacity 

7 JUN, 2012, 08.21PM IST, PTI

BANGALORE: Wind turbine manufacturer Suzlon Group today signed an expression of interest (EoI) with the government of Karnataka to develop 2,500 megawatt (MW) of new wind power capacity in the state between 2012 and 2017. 

Speaking on the occasion here, Suzlon Group Chairman Tulsi Tanti said: "This not only reinforces Karnataka's position as one of India's leading markets in wind energy, but also illustrates their commitment towards creating a low-carbon economy in the state".

The EoI covers the development of new capacity in wind farms across the state, with developments planned in the districts of Bijapur, Chitradurga, Tumkur, Dharwad, Raichur, Chikmagalur, Mysore, Belgaum and Bagalkot. The investment is worth Rs 15,000 crore, according to a company statement. 

Under the EoI signed during GIM 2012, the Karnataka government would obtain the necessary permissions, registrations, approvals and clearances for the development of wind farms in the state. 

Suzlon, in turn, would play the role of a developer and facilitate the flow of investments into the state through its customers investing in wind energy. Karnataka has large untapped wind energy potential, with estimates ranging around 13,000 MW according to Centre for Wind Energy Technology (CWET).

Karnataka attracts Rs1.6 trillion investments

Karnataka attracts Rs1.6 trillion investments

Livemint -Shamsheer Yousaf

Bangalore: The Karnataka government on Thursday signed agreements that propose Rs1.6 trillion in private investments in the state.

Power and infrastructure conglomerate GVK Group signed a memorandum of understanding (MoU) with the state government at the Global Investors Meet 2012 to spend Rs29,000 crore to build power plants.

Suzlon Group chairman and managing director Tulsi R. Tanti signed an agreement with chief minister D.V. Sadananda Gowda to set up 3,000MW of wind and solar energy projects, investing Rs20,000 crore. Welspun Energy signed an MoU to build a windmill and solar park for Rs9,900 crore.

Kumar Mangalam Birla, chairman and managing director of the Aditya Birla Group, proposed to invest Rs6,150 crore to expand its cement factory in the state, and another Rs395 crore to set up a caustic soda plant. “We will also be expanding our fibre plant in Harihar and our alumina plant in Belgaum,” Birla said.

The Embassy Group signed an agreement for Rs14,370 crore for an information technology and logistic warehousing park, and Ascendas India Trust signed an MoU for Rs10,483 crore for an integrated IT and electronics park at Bagalur near Bangalore.

Sun Forest City, a joint venture of Gurgaon-based investment firm Sun Group and US-based real estate enterprise Forest City, signed a Rs9,340 crore deal for the development of an aerospace city. The group will also provide an ecosystem for aerospace industries in three phases near the Bangalore international airport.

T.V. Mohandas Pai, chairman of the state’s vision group on information and communications technology, said the state government is aiming to increase information technology (IT) exports from $25 billion to $70 billion by 2020. Pai was previously director, human resources, at software services firm Infosys Ltd and is now chairman of Manipal Education.

Chief Minister Gowda said his government is taking steps to acquire land near Bangalore airport to establish a software park, an electronic hardware park, and an aerospace park to harness the vast potential in this sector.

“Karnataka is also the first state in the country to promote nano-science and nano-technology. The state has also provided land for the establishment of Indian institute of nano-science and technology, and for the establishment of an international centre for theoretical sciences,” he said.

N.R. Narayana Murthy, a founder and chairman emeritus of Infosys, said there was a need to diversify beyond IT and Bangalore. “We need to diversify our industrial base to other sectors like textile and power,” he said.

Undeterred, state rolls out red carpet to corporate world again

Undeterred, state rolls out red carpet to corporate world again

Mahesh Kulkarni / Chennai/ Bangalore Jun 07, 2012, 00:27 IST

An upbeat Karnataka government is hosting the second edition of the global investors meet (GIM) on June 7 and June 8 at the Bangalore International Exhibition Centre , despite an implementation ratio of a dismal 1.1 per cent of the total investments committed in the first edition of the GIM held on June 3 and June 4, 2010. In a candid admission to the captains of Indian industry on May 10, 2012, state chief minister D V Sadananda Gowda said: “Thirty one projects of the 389 proposals have been implemented so far with an investment of Rs 4,300 crore, while 289 projects with Rs 3.12 lakh crore are in various stages of their implementation.” The government had signed MoUs with 389 companies involving an investment of Rs 3.89 lakh crore in June 2010.

About 55 proposals were in the iron and steel sector and none has materialised. With the steel industry and mining sector mired in scams and legal battles over the last two years after the Supreme Court banned mining of iron ore in the state, investment proposals worth Rs 2.56 lakh crore from global and Indian firms for setting up steel plants and power projects failed to materialise.

“We are doing our best to ensure these projects are executed in the next two years to create jobs and contribute to the socio-economic development of the state,” an unfazed Murugesh R Nirani, minister for large and medium industries, said. Among the 55 global and Indian firms that signed agreements with the state government on June 3 and June 4, 2010, amid much fanfare, were the world’s largest steel maker ArcelorMittal, Posco of South Korea, Surya Vijayanagar Steel Ltd, Bhushan Steel Ltd and Brahmani Industries Karnataka Ltd of the jailed former state minister G Janardhana Reddy, NMDC, Tata Metaliks, Hazira Steel among others. However, the government is now hopeful of exceeding its own target of attracting Rs 5 lakh crore investments this time. The state government, led by Sadananda Gowda has left no stone unturned to woo investors to the state.

Putting the ignoring the simmering political crisis in the ruling BJP government, which completed four years in office on May 30, 2012, the chief minister and industries minister have once again rolled out the red carpet for the global investors. They have made all out efforts to showcase State as an investor-friendly destination in the country in industrial and technology sectors, besides the infrastructure sector spanning power, airports, ports, urban transport, road and rail connectivity. The state high level clearance committee headed by the CM has already cleared 31 projects worth over Rs 1,46,656 crore that will create jobs for about 300,000 people in sectors spanning cement, energy, aerospace, IT, electronics and infrastructure. “The mission of this event is to attract over Rs 5 lakh crore investment, create at least one million jobs and double State Gross Domestic Product by 2020 from the present Rs 5 lakh crore,” Sadananda Gowda said.

Unlike in GIM 2010 when the focus was on the steel and mining sectors, the state industry department has identified 14 sectors, including ICT, electronics, aerospace and defence, automobiles, textiles, pharma and health, power, agro-tech and food processing and tourism and hospitality for GIM 2012, with an employment potential for about one million people. Besides existing investors such as Tatas, Birlas, JSW group, GVK Reddy group, Toyota Kirloskar and Ascendas, about 80 Fortune 500 firms, including Reliance group have evinced interest in investing in the state in growth-oriented sectors, Nirani claimed.

In the run-up to the event, the state government conducted road shows in Mumbai, New Delhi, Kolkata, Chennai and Hyderabad and in Dubai, Singapore and Japan. It was aimed at showcasing its investor-friendly policies with special packages to be doled out case-by-case for attracting investments in specific industries with huge scope for job creation and exports.

As part of the event, the state government is also holding a three-day ‘GIM Expo’ at the BIEC venue, which kicked off on Wednesday to showcase its strengths, infrastructure facilities, pro-active industrial policies, incentives, human capital, land bank and natural resources.

Yadgir is Karnataka's new business destination

Yadgir is Karnataka's new business destination
Manu Aiyappa, TNN | Jun 7, 2012, 08.05PM IST

BANGALORE: Carved out of the erstwhile Gulbarga district, Yadgir, about 426 km from Bangalore has been witnessing an exodus of youth in search of employment over the last decade. But the second edition of Global Investors Meet (GIM) that took off on Thursday promises to reverse this trend sooner or later.

The most Backward Yadgir district is fast emerging as one of the most sought after 'business districts' in Karnataka, if one goes by the investment proposals mooted at the GIM.

The state government had set its sight on roping in Rs 6 lakh crore. Of these Yadgir is expecting investments between Rs 20,000 and Rs 30,000 crore -- highest to any district in Karnataka after Bangalore.

What led to the turn around? Karnataka Small scale industries minister Narsimha Naik (Raju Gouda), who hails from the region said there are two major factors that have encouraged investors to favour Yadgir. One, the government has declared huge tax incentives like investment subsidy, sales tax exemption, etc., for those who set up their investment in this district.

Secondly, he said Yadgir's environment was conducive for investment now. Its strategically located, 160 km from the River Krishna and the River Bhima also runs through the district but still land is largely not irrigated, and hence there is plenty of space for the setting up of large industries.

A senior industries official said the other reason why investors are eyeing Yadgit is because of cheap labour that are locally available. The district has been more or less left untouched by industrialization. Unemployment was rampant since agriculture was the only source of income. Therefore cement and automobile industries are opting to set up shops in the district,'' he added

According to government statistics, Yadgir has been classified as a 'C' category, industrially backward district. Between 2001 and 2012, a total of 11 small industries had been set up in the district entailing an investment of Rs 377 crore. Between 2010 and 2012, at least 41 new industrial units had proposed come up in the district at a cumulative investment between Rs 20,000 crore and Rs 30,000 crore

But some investors are still skeptical that Yadgir would emerge has potential investment destination. The ball is now in the court of the state government. It should focus on creating infrastructure for facilitating industrial climate in the backward districts of the State. No body will invest just for the sake of water and labour. There are other key factors like industrial amenities, connectivity and power,'' said N Pratap Reddy, a small scale industrialist, who is looking forward to invest in Yadgir.

Karnataka wins Rs 37,000-cr investments from Tata, Birla

Karnataka wins Rs 37,000-cr investments from Tata, Birla

The Hindu Business Line

The Karnataka Chief Minister, Mr D. V. Sadananda Gowda, (right) and Mr N. R. Narayana Murthy, Founder and Chairman Emeritus, Infosys, at the inauguration of the Global Investors Meet 2012 in Bangalore on Thursday. — G.R.N. Somashekar

BANGALORE, JUNE 7:


Despite global economic uncertainties and a slowing economy, Karnataka has managed to attract some big-ticket investments at the Global Investment Meet (GIM).


The State Government said it has received 31 FDI proposals and is expected to sign MoUs with close to 400 companies. It expects the total investment committed to exceed Rs 6 lakh crore. The big-ticket investments include Tata Steel's Rs 30,000 crore in nine sectors including a six-million-tonne a year plant at Haveri.


The Aditya Birla Group Chairman, Mr Kumaramangalam Birla, announced investments of Rs 7,000 crore in the State including in a 4 mtpa cement plant (UltraTech) at Rs 2,750 crore and expanding the Grasim Industries' caustic soda plant at Harihara.


The Karnataka Chief Minister, Mr D. V. Sadananda Gowda, said the State had taken some proactive steps to make it the best investment destination.


The Government has constituted the Karnataka ICT group 2020 under the leadership of Mr T. V. Mohandas Pai. This initiative is to increase ICT exports to Rs 4-lakh crore and create an additional 12 lakh jobs by 2020.


Similarly, for other sectors, the Government has draft policies to advance and facilitate investments. Some of these are the Infrastructure Bill, the Special Investment Region Act, the Karnataka State housing policy, and policies for the automobile, aerospace, solar and pharma sectors. Mr Gowda said the investor's needs have been addressed through timely interventions such as the new industrial policy, and policies in the SEZ, electronics hardware, textile and agri-business sectors.


Delivering the special address, the Infosys Chief Mentor, Mr N. R. Narayana Murthy, stressed the need for Karnataka to diversify its industrial base to create jobs. To increase the share of the country's GDP, industry had to create 10 crore jobs over the next decade.


“So, the government should focus on attracting investment and exports, apart from catering to domestic demand and help diversify the industrial base,” he said. For this to happen, the Government policies should attract FDI.

Global Investors's Meet: 7,500 km arterial road to be developed in Karnataka

Manu Aiyappa, TNN | Jun 7, 2012, 10.26PM IST

BANGALORE: For the first time, Karnataka plans to undertake road development projects through viability gap funding (VGP) in order to make them profitable for promoters.

Initially, state plans to upgrade 7500 km of arterial roads in the state through viability gap funding in next two years following approval from the Center. 

The state government intends to involve the private sector in a big way to provide quality roads through VGP scheme. And we are hoping to achieve it at Global Investors Meet,'' S C Khuntia, principal secretary, PWD said.

The proposed project will be executed under public-private partnership model, involving an investment of Rs 5,000 crore. After a pre-bid meeting with interested developers at the GIM, the government has decided to call for the final bidding sooner or later.

The concept of viability gap funding was introduced by the Government of India about five years back to attract promoters for projects which may not immediately be otherwise viable. However, Karnataka struck to its old method of offering land for commercial development to developers that failed to cut ice over the years. The decision to go in for viability funding has been taken to minimize the problems associated with land acquisition,'' PWD minister C M Udasi said.

Like PWD, the cash-starved BBMP too is lobbying hard at the Global Investors meet to offer a dozen of its infrastructure-related projects under the public-private partnership (PPP) mode.

The civic agency which is neck-deep into financial problems, is hoping the investors to plough in over '1,057 crore into the city.

Building of sky-walks with escalators at various spots in Bangalore to help pedestrians cross busy roads and constructing abattoirs are on its list of projects for foreign investment.

The desperation was writ large on faces of BBMP officials at their stall at GIM expo as they were giving away Registration Of Interest (ROI) form to all visitors.

Govt’s sop opera precedes GIM

Govt’s sop opera precedes GIM Bangalore,
June 4, 2012, DHNS: 

Special package of incentives, concessions for projects worth Rs 250 cr and above In an effort to attract investors ahead of the second edition of Global Investors’ Meet (GIM), the State government has extended a special package of incentives and concessions for projects worth Rs 250 crore and above coming up outside Bangalore.

Industries Ministers Murugesh Nirani on Monday told media that the special package would be over and above those already announced under the State Industrial Policy. The package will be offered on case-to-case basis, depending on the sector and the amount of investment proposed. The government has taken a liberal stand on offering incentives for the sake of industrial development in the State, the minister said. He, however, refused to divulge details on the new incentives and concessions that the government has been planning to offer. He only said a high-level committee headed by the Chief Minister will be set up to look into the applications seeking special packages by investors. 

Some of the big ticket companies which signed MoUs with the government in GIM 2010 too have got special incentives and concessions. For instance, Honda Motorcycle and Scooter India have been given 40 per cent value added tax (VAT) repayable by the company to the Government as interest-free loan for up to 10 years for its proposed investment in Narasapura in Kolar district. The company will start repaying the loan from the 11th year. Besides, 95 per cent of CST will be reimbursed to the company for a period of five years and the land registration cost has been completely waived of. 

Principal Secretary to Industries and Commerce department M N Vidyashankar said entrepreneurs always go to the place where they get the maximum benefit. Hence, the government has to offer special packages to attract them. Nirani said Japan International Construction Company (JICC) has evinced interest to implement the proposed high-speed train on Bangalore-Mysore and Hubli-Dharwad corridors in the first phase. A detailed project report will be ready by December this year, he added. 

As many as 55 top industrialists, including N R Narayana Murthy of Infosys, chairperson of Aditya Birla Group Kumaramangalam Birla, President and CEO of General Electronics John Flannery, GVK Group chairperson G V K Reddy, have confirmed their participation in the GIM-II which is scheduled to be held at Bangalore International Exhibition Centre off Tumkur Road on June 7 and 8. Business delegations from about 30 countries are expected to attend the meet, Nirani said. 

Toll-free The Minister said the road connecting to BIEC from Bangalore will be declared toll-free for the convenience of the participants. Steps are being taken to fill potholes on the main thoroughfares of Bangalore. Information about the projects cleared during the two-day event will be immediately posted on the Commerce and Industries department’s website, he added. Manipal Global Education chairperson Mohandas Pai said despite repeated political upheavals, Karnataka continues to be the most sought-after destination for investors because of the availability of quality manpower and good industrial policy.

Karnataka eyes over Rs 20,000 crore investment in MSME

Karnataka eyes over Rs 20,000 crore investment in MSME
6 JUN, 2012, 08.49PM IST, PTI 

BANGALORE: The Karnataka Government is looking at over Rs 20,000 crore investments in micro, small and medium enterprises (MSME) sector in this year's two-day Global Investors Meet (GIM), which started here today. "About 8,000 companies are participating in GIM 2012 and we are looking at over Rs 20,000 crore investments in MSME sector," a top government official said. 

The meet was inaugurated by Chief Minister D V Sadananda Gowda. Best part of the current GIM is that many participants are cluster-based companies like plastic, packaging, machine tools, medical equipment, precision engineering, areospace and pharma among others, the official told reporters. 

Companies from Mysore have committed an investment of Rs 12,000 crore and those from Belgaum Rs 2,000 crore, he said, adding Rs 4,000 crore investments would come from companies based in Hubli-Dharwad and Rs 1,000 crore from Dakshin Kannada district. Industries in and around Bangalore have committed an investment of above Rs 5,000 crore, the official said. 

Besides, there was good participation from states like Gujarat, Punjab, Kerala, Uttarakhand, Madhya Pradesh, Uttar Pradesh, Jharkhand, Bihar, Chhattisgarh and Odisha among others, an official, who declined to be quoted, said. More than 30 countries including Italy, Japan, Mexico, UK Cannada, Taiwan and Germany, among others, are participating in the meet, the official said. Some of the key participants in the expo are JSW Group, Honda two-wheelers, Grasim, Suzlon, Gail, Zuari Cements, SBI, Tata Motors, Toyota Motors, L&T, Indian Oil Company, HAL, NAL, DRDO, Mangalore Refineries and Petrochemicals Limited.