Linking India’s financial centre with its IT hub

 

PARVATHI MENON -THE HINDU

The Bengaluru-Mumbai Economic Corridor, as an anchor of the U.K.-India partnership, is set to change the economic landscape of the region it passes through

If there is a developing centrepiece of the U.K.-India economic engagement, which the coalition government of David Cameron has been active in promoting, it is perhaps the agreement on the joint development of the Bengaluru-Mumbai Economic Corridor.

The decision to cooperate in developing the projected 1,000-km corridor that will link the two cities — with provision for creating manufacturing hubs along the route, developing the towns and their hinterland, and creating both investment and job opportunities along and around its route — was part of the joint memorandum that was signed between the two countries when Mr. Cameron visited India in February this year.

The tender for the feasibility report for the project was issued this month, with a December 26 deadline for submissions. Officials from the Indian High Commission involved in the negotiations believe that progress has been remarkably fast for a project of this size and scope — a sign of the importance that the Indian government attaches to the project, as well as of British investment interest in the project.

An “exciting flagship for wider collaboration on infrastructure” is how Barry Lowen, Director, U.K. Trade Investment (India), which leads on the U.K. side, described the project toThe Hindu. “The U.K. has expertise on innovative ways to raise funding and promote green technologies in promoting infrastructure,” he said.

The 95-page tender for submitting the project’s feasibility study lays out the scope of the project. The funding for the study is to be underwritten by India, and is itself expected to run into millions of Great British Pounds.

The vision for the BMEC, as set out in the terms of reference of the feasibility study is of a “global exemplar both for commercially viable sustainable development and for attracting investments into manufacturing and clean infrastructure (potable water, clean energy etc).”

To achieve “comprehensive, accelerated and sustainable economic development with green technology and regional industrial and urban agglomeration, diffusing the regional population along the length of the corridor”, the BMEC will boost “regional industry agglomeration... attracting companies in the value chain of existing companies to the corridor, attracting particular industries where the corridor has geographical advantages or has advanced infrastructure for such industries.”

The project looks to create advantages for industrial development along the corridor, creating linkages that will provide quick access to production units in a way that will reduce transportation time, costs of logistics and inventory.

The corridor will start from Bangalore, passing through Tumkur, Chitradurga, Hubli, Dharwad and Belgaum in Karnataka), Kolhapur, Sangli, Satara, Karad and Pune and end in Mumbai (in Maharashtra).

“It represents a fantastic opportunity to develop the engagement between the two countries,” said Amarjit Singh, Associate Solicitor in Dutton Gregory LLP and Head of India Business Group in the UK, who also accompanied Mr. Cameron on his visit to India in February.

“Significantly, the corridor will link Mumbai, the financial centre of India and Bangalore, the country's IT hub. The U.K.’s capabilities in both sectors are world-class,” he added.

The model for the corridor is the Delhi Mumbai Infrastructure Corridor that is currently under development with Japanese funding. The nodal agency on the Indian side is the Department of Industrial Promotion under the Ministry of Commerce and Industry. Once chosen, the company/consortium must meet an eight month deadline to submit a Perspective Plan for overall development of the BMEC region along with a concept report for the greenfield megacities conceived as part of it. Foreign companies can apply.

Actual work on the project is unlikely to get off the ground before 2015, and even that is an optimistic expectation given the challenges that lie ahead.

Hurdles

The first hurdle relates to the political environment: the new government that will be elected in the 2014 Lok Sabha elections must ratify the agreement. Assuming that the new government does so and allowing for possible changes to the corridor route dictated by political or other reasons, the project must get the critical environmental clearances. Only after this can the thorny issue of land acquisition be taken up.

It should be recalled here that Posco, the Korean steel giant cancelled its plans for a $ 5.3 billion steel mill development project near Dharwad in Karnataka primarily due to popular opposition to land acquisition for the construction of its plant.

Secondly, if past experience is a guide, land prices along the route will explode once the plan is announced, creating dispossession on the one hand and speculation by land sharks on the other. Third, the BMEC corridor passes through relatively less industrialised areas when compared to the Delhi Mumbai Industrial corridor. Analysis of the trends in foreign direct investment indicates that DMIC States cater to 52% of total Foreign Direct Investment equity inflows in to the country. Mumbai and Delhi regions together constitute 92% of total FDI equity inflows amongst the project States.

Even with these advantages, the DMIC, which was conceived between India and Japan in mid-2007 and projected to cost $90 billion (Rs. 4,23,000 crore), is still years from completion.

Sources close to the project in the U.K. Foreign Office told The Hindu that one of the primary concerns on the British side relates to the multiplicity of Central and State laws that will have to be negotiated, a process they fear could cause delays. The BMEC, when it finally does see the light of day, will undoubtedly change the economic landscape of the region it passes through, a process that Britain will doubtless reap the financial rewards of. What India’s gains will be depends entirely on how the benefits and losses of this game-changing project will be shared.

parvathi.menon@thehindu.co.i
n

India A thrash West Indies A in Hubli to draw series 1-1

Hubli (Karnataka), Oct 12: Zaheer Khan took four wickets on the final day as India A defeated West Indies A by an innings and 54 runs in the third and final unofficial Test here on Saturday. The three-match series was drawn 1-1. 

The visitors had won the first match in Mysore and the second was a draw in Shimoga. On the fourth and final day, West Indies A resumed at 116/3, still training by 280. Overnight batsman Narsingh Deonarine continued to fight and came very close to a century but fell just 1 run short, bowled by Zaheer for 99. He batted for 180 balls hitting 13 boundaries. Assad Fudadin contributed 49 but the rest of the batsmen failed. 

The visitors were bowled out for 242 in 73.5 overs. Jahmar Hamilton did not bat as he was injured. Abhishek Nayar took two wickets. Zaheer finished with 4/59 in 16.5 overs. 

The hosts' lead was set up by captain Cheteshwar Pujara's triple hundred on Friday. He hit 306 not out.

Pictures Courtesy: Pavan

Hero Motocorp likely to set up mega plant in Dharwad

STAFF CORRESPONDENT - The HinDU

  

Government has already held two rounds of meetings with owners in Delhi: Aravind Bellad

Hero Motocorp, a leading two-wheeler manufacturer in India, is likely to set up a production unit here.

Aravind Bellad, MLA, told presspersons here on Saturday that the government had already held two rounds of meetings, and the project is likely to get the green signal during the winter session of the State Legislature to be held in Belgaum in November.

The high-level meeting with officials and owners of Hero Motorcorp was held in New Delhi, and officials had expressed eagerness to set up a two-wheeler manufacturing unit in Dharwad. This unit will come up in 500 acres in Mummigatti near here. Company officials have stated that Rs. 1,200 crore would be the direct investment, with Rs. 800 crore as ancillaries, bringing the total investment for this mega plant to Rs. 2,000 crore.

They also revealed that this plant would create 5,000 jobs, a number which will be increased to 40,000 jobs in a phased manner. The unit would manufacture 1.5 million two-wheelers and their parts; a testing track will also be set up.

Mr. Bellad said Hero Motocorp would hold meeting with the Chief Secretary in Bangalore to discuss their wishlist.

The company had approached the government last year, however, discussions could not be completed and hence the project had taken a backseat. Now, this project has once again gained momentum, and there are all possibilities of making it a reality during the winter session.

To a query, he said the company had demanded 500 acres, as well as water and power facilities.

The Karnataka Industrial Area Development Board has the land in its possession and the government in principle has assured of providing other facilities. He clarified the company had not asked for the creation of a township, but he would pressure the government to grant other basic facilities.

The area from Belur to Hubli airport is being transformed into a high-economy zone. The establishment of this mega plant would be the first step towards that goal, Mr. Bellad said.

Officials have been asked to give priority to local talent during recruitment. Besides, optimum salary would be given to the local youth, he said.

Bangalore ITE.biz to be held in Hubli on Oct 8

Hindu Businessline

Bangalore ITE.biz, the flagship event of Karnataka for the promotion of IT/ITeS sector, is planning to hold its maiden one-day conference at Hubli on October 8.

The event is organsied by Karnataka IT, BT and S&T departments and co-hosted by the Software Technology Parks of India (STPI).

“The event will be addressed by the captains of ITE industry where they are expected to share the insights on the latest trends that will shape the future of IT and Electronics sector,” Sasikumar V, Officer In-charge, STPI Hubli, said.

STPI and the Karnataka Government have been conducting ‘Bangalore ITE.biz’ for the past 15 years at Bangalore. “Now for the first time, we are organising the satellite event in Hubli on October 8 at The Gateway Hotel, Hubli,” Sasikumar said.

S.R. Patil, Karnataka Minister for IT, BT, S&T, Planning & Statistics, will be the chief guest. Mohandas Pai, Chairman, Manipal Global Education, will deliver the keynote address.

Panel discussion

The event will see three panel discussions on ‘Taking IT Beyond Bangalore: Enablers and Challenges; Focus Hubli-Dharwad’.

‘Opportunities in ESDM: Focus Hubli-Dharwad’ by India Electronics & Semiconductor Association (IESA).

‘Fostering a Culture of Innovation in Enterprise’ by Nasscom and followed by Networking Lunch and B2B Meetings on request.

For more details, contact Sasikumar V., STPI Hubli, Tel:0836-2257093 .

Monorail in Bangalore, Hubli-Dharwad?

By Express News Service - BANGALORE | Published: 18th September 2013 08:38 AM

A Malaysian company has evinced interest to start monorail services in Bangalore and Hubli-Dharwad cities  and the government will initiate talks with the company soon, Infrastructure and Information Minister Santosh Lad said.

Speaking to reporters here on Tuesday, he said, the company, in the first stage, has agreed to cover 25 km in Hubli-Dharwad and 30-35 km in Bangalore.

It has also been asked to also visit Mangalore and Belgaum to explore possibility of introducing monorail  there, he noted.

The government wants to improve connectivity in tier-II cities by promoting monorail.

Details are being worked out based on which expression of interests will be called.

According to an estimate, the cost per km for elevated monorail may come around Rs 80 crore to Rs 100 crore per km. “We are yet to work out the details, he added.

‘Airport projects not shelved’

The State government’s ambitious plans to develop airports in tier-II cities has ‘grounded’ temporarily as the promoters of airports in Gulbarga, Bijapur, Hassan and Bellary have backed out citing the projects as ‘unviable’, he said,

Lad added that the projects to develop airports in smaller cities are not ‘shelved’.

They have been put on the backburner till the government comes with a a new formula, he clarified.

Preparations for cricket match in Hubli reviewed

By Express News Service - DHARWAD

Published: 16th September 2013 11:07 AM

A preparatory meeting of senior cricketers in connection with the India A and West Indies A match at Hubli (October 9-12) was held at the KSCA ground at Rajnagar in Hubli on Sunday.

A number of senior cricketers from Hubli and Dharwad attended the meeting chaired by KSCA’s Dharwad zone chairman Veeranna Savadi.

Dharwad Zone Convener Baba Bhusad termed the match as an opportunity provided by the Board of Control for Cricket in India (BCCI) to Hubli and Dharwad to prove its organising capacity and build a good reputation. This in turn would certainly help the zone in getting more and more international matches in future. This would ultimately help uplift the standard of cricket in this part of the state, he added.

Entry to the match would be free and seating for around 10,000 to 12,000 would be provided.

Separate seating arrangements would be made for VVIP and VIPs besides senior cricketers, who will have to gain entry from gate no 3.

The main entrance would be reserved for the players and the BCCI officials, he said.

“Players of both the sides will reach Hubli on October 6 and will have net practise on October 7 and 8. KSCA coaches Armugam and Pramod Kamat will act as the local managers of the two teams”, he said.

Bhusad urged senior cricketers to extend their support and be the part of various working committees and help the zone to organise the match successfully. 

Tournament committee chairman Altaf Kittur, curator Shivanand Gunjal, senior cricketers Vijay Kamat, Vilas Bendre, Prabhakar Kagalkar, Bhagwan, Umesh Devali, Ashok Katkar, Vasant Murdeshwar, K Manjunath, Shiralkar, Pramod Jambagi, and others were present.

Siddaramaiah seeks Ascendas help to develop tier II cities in Karnataka

OUR BUREAU

                  

BANGALORE, SEPT 13:  

A Karnataka delegation led by Chief Minister Siddaramaiah has visited Ascendas IT Park in China and sought its help to develop tier II cities in the State.

The Chief Minister took time off from the World Economic Forum meet held at China’s Dalian province and visited the Ascendas IT Park.

Karnataka-based companies like Infosys are in this IT Park. Chief Minister after touring the facility emphasised the potential of developing tier II cities like Mysore, Hubli, Gulbarga and Mangalore in the State and invited them to explore these locations.

Ascendas, a leader in providing business space solutions for more than 30 years in Asian region, gave a detailed presentation about their strength in designing and developing indusrial areas.

“Ascendas specialises in master planning, developing, managing and marketing IT parks, industrial and logistics parks, business parks, science parks, hi-tech facilities, office and retail space for a host of industries,” said M. Maheshwara Rao, Karnataka Commissioner for Industries and Commerce department.

The company based in Singapore, has built a strong regional presence and serves a global clientele of over 2,400 customers in 33 cities across 10 countries including Singapore, China, India, South Korea and Australia.

Road Show

The Karnataka Government had organised a road show in Dalian at Hotel Kempinski. More than 150 leading investors/entrepreneurs of Dalian had participated in the event.

According to M.N. Vidyashankar, Karnataka Principal Secretary, Industries and Commerce Department, “The state showcased various investment opportunities available in sectors like IT/BT, aerospace, manufacturing, food processing, tourism. A few delegates have shown keen interest in exploring Karnataka,”.

The infrastructure initiatives taken and also the policy initiatives of Karnataka were highlighted. Invitation was extended to them to invest in Karnataka.

anil.u@thehindu.co.in

Incomex to showcase ‘Vibrant North Karnataka’

OUR BUREAU

There will be vendor development programmes on September 14, 15 and 16. Two separate halls have been set aside for conducting seminars and interactions.

HUBLI, SEPT. 12:  

The five-day mega industrial exhibition - Incomex-2013 which begins tomorrow in Hubli plans to showcase ‘Vibrant North Karnataka’.

The industrial exhibition is hosted by the Karnataka Industries Department, Dharwad District Administration and Karnatak Chamber of Commerce and Industry (KCCI), Hubli, will be held at The Hubli-Dharwad Multi-Purpose Exhibition Centre located on the premises of APMC yard at Amaragol in Hubli.

Dharwad Deputy Commissioner Sameer Shukla told reporters the exhibition would have 18 stalls showcasing ‘Vibrant North Karnataka’. The stall would have details on the industries in the region and the untapped potential of the region.

As part of the industrial exhibition, seminars, interactions on business development apart from the exhibition for which as many as 332 stalls have been erected.

Shukla said there would be vendor development programmes on September 14, 15 and 16. Two separate halls have been set aside for conducting seminars and interactions.

“In addition to the 332 stalls for industrial exhibition, 12 stalls each have been given for automobile sector and vendor development programme and thirteen stalls have been earmarked for food products,” he added.

For smooth conduct of the event, Shukla said that 24 CCTV cameras had been installed at the venue to provide adequate security and there would also be a control room working round-the-clock.

As Chief Minister Siddaramaiah who was supposed to inaugurate the mega event is in on a China tour, the exhibition will be inaugurated by Minister for Rural Development and Panchayat Raj H.K. Patil. KCCI President N.P. Javali said that former chief minister Jagadish Shettar will preside over the function, while District-in-Charge Minister Santosh Lad will release the souvenir.

Incomex-2013, being held after a gap of six years, will have participation from Unique Identification Authority of India (UIDAI), Nuclear Power Corporation, Kaiga, GTTC, Bangalore, Protech Ltd, Chennai, Micromax Ltd, Bangalore and other noted companies from the automobile industry.

Apart from them Sea Bird, Karwar, Nuclear Power Corporation, Kaiga, South Western Railway, BEML, HAL, BHEL, ISRO, Tata Group of Companies, BEL and HESCOM will be participating in the Vendor Development Programme.

anil.u@thehindu.co.in

Permanent bench of Karnataka High Court to be inaugurated on Saturday

By PTI - DHARWAD

Published: 24th August 2013 01:05 PM

Last Updated: 24th August 2013 01:05 PM

A permanent bench of the Karnataka High Court will be inaugurated in Dharwad on Saturday while another bench in Gulbarga will become operational on August 31.

The Union Cabinet had approved upgrading the circuit Benches to permanent benches in June. Under the order, the Chief Justice of the Karnataka High Court has been empowered to nominate judges from his High Court to sit at Dharwad for cases arising in Bagalkot, Bellary, Belgaum, Dharwad, Gadag, Haveri, Uttara Kannada-Karwar and Koppal districts.

Judges sitting at the Gulbarga Bench will look after cases arising in Bidar, Bijapur, Gulbarga and Raichur districts of the state.

The order also gives the Karnataka HC Chief Justice the discretionary power to order any case or class of cases arising in any of the districts to be heard at the principal Bench at Bangalore.

At present, judges are sitting at Circuit Benches on a rotational basis for one month. The creation of permanent Benches would mean that judges will sit there on a permanent basis and it will end inconvenience to them, advocates and litigants.

Circuit Benches at Dharwad and Gulbarga were set up in July, 2008. The state had a sanctioned strength of 41 judges in 2008, which has been increased to 50 Judges since November, 2009.

Out of these, 6 or 7 judges sit at the Circuit Bench at Dharwad and 4-3 judges at the Circuit Bench at Gulbarga on rotation basis. The state has sanctioned 190 positions of officials to work for the Dharwad Circuit Bench.

Infy campus at Hubli gets Cabinet nod

Bangalore, Aug 23, 2013, DHNS :

The State High Level Clearance Committee headed by Chief Minister Siddaramaiah on Friday cleared 19 projects with an investment potential of Rs 14,818 crore including a new campus of IT giant Infosys in Hubli, besides projects proposed by Asian Paints and Wipro Enterprises, in Mysore.

According to a statement released by the chief minister’s office, the 19 projects have the potential to provide employment to 69,746 people. Infosys is likely to invest Rs 472 crore for its new campus in Hubli. However, the government did not release the details of the nature of the projects cleared.

Infosys is in possession of 50 acres of land in Hubli.

IT and BT Minister S R Patil had recently met Infosys Executive Chairman N R Narayana Murthy and urged him to open a campus in North Karnataka.

According to sources, Asian Paints will set up a six lakh litre paint manufacturing plant in Mysore, while Wipro Enterprises will set up a piston manufacturing unit in the same district. Mysore, the home district of Siddaramaiah, has got the second highest investment at Rs 2,404 crore only next to Bangalore (rural) at Rs 4,397 crore.

Other big ticket projects cleared include Cognizant Technology Solutions India Ltd at Devanahalli IT park, Tata Power for manufacturing equipment at Kolar, Kirloskar Toyota Textile Machinery for setting up its units in Bangalore rural and Belgaum.

Hubli airport gets cargo service

Basavaraj F Kattimani, TNN Aug 22, 2013, 04.20AM IST

HUBLI: People can now easily export various commodities from Hubli as the long-awaited cargo service started at the Hubli airport recently. After the introduction of flight service to Bangalore, Mumbai and Delhi from Hubli, there has been demand for cargo service. After much discussion and studying the feasibility, the Airports Authority of India had given its approval a few days back.

The Hubli Airport Authority had given permission to Blue Dart and DTDC courier companies, which have been handling cargo service since few days. K M Basavaraj, director, Hubli Airport, said: ''The long-pending demand of the people has been met. As of now, we have allowed two private courier companies to handle cargo service. Depending on the response, we will give permission to more companies to handle the service.''

Keonics to set up IT park in Belgaum

R Uday Kumar, TNN Aug 17, 2013, 04.17AM IST

BELGAUM: Karnataka State Electronics Development Corporation Limited (Keonics) will set up an IT park in a five-acre land in Belgaum and an incubation centre will be set up in an engineering college in Belgaum, said minister for IT and BT SR Patil here on Friday.

''Instead of giving barren land to firms, the government has decided to construct a building and later give it to the firms. Soon, they will identify the land. Once this is done, more IT firms will definitely come to Belgaum. The IT park will be on the model of ITPL in Bangalore. The minimum area will be 100,000 sqft and can accommodate IT companies,'' Patil said.

He said the incubation centre will serve students in honing their skills before getting into the job.

At another function, Patil said that as Bangalore was saturated, IT industry will in future focus more on Tier II cities like Mysore, Mangalore, Hubli, Dharwad, Gulbarga and Belgaum.

More focus will be given to North Karnataka region, especially Belgaum, he said.

Speaking after inaugurating the first Techtree IT System's shore development centre, which happens to be the first software unit in Belgaum, Patil said that the Union government had approved the Information Technology Investment Region, coming up on about 10,500 acres near Bangalore which would generate nearly 40 lakh jobs. It will be set up near the Bengaluru International Airport.

''We have started speaking to IT giants on the need to focus on Tier II and III cities. Mysore is the most fast developing Tier II cities in Karnataka. Belgaum also has all the required facilities. IT sector should grow across the state and generate employment. A few weeks back, I spoke to NR Narayana Murthy, executive chairman, Infosys, on starting their unit in Hubli. We have given 50 acres for the unit, which can provide nearly 10,000 jobs,'' he said.

He also mentioned that based on the ICT report, the state is looking at increasing employment in the IT sector from 8 lakh to 20 lakh and software exports from the current Rs 1,30,000 crore to Rs 4,00,000 crore.

Focus on Suvarna Soudha: Patil said that if the location of Vidhana Soudha made Bangalore famous, then the Suvarna Vidhana Soudha should bring fame to Belgaum. He said government departments which are important for North Karnataka people should be set up at the Suvarna Soudha.

"The previous government did a good job by constructing the Suvarna Vidhana Soudha. After investing nearly Rs 400 crore, it should not go waste,'' he said.

HUBLI:Rajnagar stadium fit for international matches

Rajnagar stadium fit for international matches

TNN Aug 8, 2013, 04.39AM IST

HUBLI: Karnataka State Cricket Association Rajnagar stadium of Hubli is fit to host international cricket matches, said SuruNayak, Cricket Operations Manager, Board of Control for Cricket in India (Bon Wednesday.

He said that more international matches will be held here. He was speaking to reporters after inspecting the stadium.

He took stock of the preparedness for hosting international matches in October. "The ground and the practice match facility at the stadium are excellent. But the stadium lacks a medical room for first aid for which a recommendation will be made to the Karnataka State Cricket Association to arrange for medical facility at the stadium," he said. Hospitality and security arrangements are also good, he added. Of the three four-day international matches to be held in Karnataka -one each in Hubli, Mysore and final match in Bangalore- one match will be held at the stadium from October 2 to October 6.