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.

Tata Motors plant at Dharwad comes on stream

Tata Motors plant at Dharwad comes on stream
6 JUN, 2012, 03.42PM IST, PTI

BANGALORE: Tata Motors' Dharwad plant for small commercial vehicles is now operational and has begun to produce the Tata Ace Zip and the Tata Magic IRIS. P M Telang, Managing Director - India Operations, Tata Motors said, "This move is integral to Tata Motors' dominant presence in the Commercial Vehicles market." Launched in May 2011, Tata Magic IRIS is a four-wheel, 3-4 seater small passenger carrier, positioned as an alternative for commuters who depend on three-wheelers. Tata Ace Zip, also launched in May 2011, is a micro truck with a payload of 600 kg for deep-penetration door-to-door goods movement, the company said in a statement.