New industrial policy in a month, says Minister

New industrial policy in a month, says Minister

Staff Correspondent - The HIndu

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Land lying unutilised for 10 years to be taken back

Global investors’ meet to be held on January 15, 16

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MYSORE: Minister for Major and Medium Industries Murugesh Nirani on Friday said that the Karnataka Industrial Areas Development Board (KIADB) had been asked to take back the lands allotted to entrepreneurs in industrial estates if they had not established industries on them even after 10 years of allotment.

The board had been directed to re-allot such lands to entrepreneurs willing to set up industries within two years of the allotment.

Mr. Nirani said the KIADB had been directed to identify lands devoid of industrial development and issue notices to the owners to handover them to the board.

“We shall not entertain explanation from them. Even political influence on the matter will not be considered. If industries have not come up on the land allotted purely for industrial purpose even after 10 years, there is no point in allowing them to hold the land,” the Minister told a press conference here.

The new industrial policy would announced in a month, Mr. Nirani said and added that a lot of reforms were being introduced in consultation with captains of industries to develop Karnataka as a “preferred hub for industries”. The move to take back “undeveloped land” in industrial areas was one of the highlights of the policy.

“Since the policy is almost ready for introduction, we have initiated measures such as taking back undeveloped industrial land as a step to boost industrial growth,” he said.

The Minister said that industrial bodies had given valuable suggestions after perusing the draft of the policy. “The feedback has been good and opinion of almost all industrial sectors has been taken into consideration,” Mr. Nirani said and added that the policy had been influenced by industrial policies of Gujarat and Tamil Nadu.

Mr. Nirani announced that a global investors’ convention would be held in Bangalore on January 15 and 16.“We are expecting investments to the tune of Rs. 2 lakh crore,” he said. After the Bangalore convention, such meetings would be organised in tier-II cities such as Mysore, Hubli-Dharwad, Belgaum and Mangalore.

Industrial corridors

He said that industrial corridors were being developed between Chennai and Mumbai via Bangalore, Tumkur, Davangere and Chitradurga; between Bangalore and Bidar via Bellary; between Bangalore and Mangalore via Hassan; between Chitradurga and Bijapur, and between Gulbarga and Belgaum.

To accelerate industrial growth in Mysore, 3,000 acres of dry land had been identified between Managanagalli and Jayapura on Manandawadi Road for acquisition. An action plan had been prepared to create a land bank there. “Farmers will get satisfactory relief package for their land,” Mr. Nirani said.

Nirani’s offer to IT companies

Nirani’s offer to IT companies

Staff Correspondent - The Hindu

MYSORE: “Get land within 24 hours in tier-II cities.” This is Minister for Major and Medium Industries Murugesh Nirani’s offer to information technology (IT) companies.

“IT companies must see beyond Bangalore city for expansion. The Government may have declined land for some in Bangalore as it wants them to start operations in tier-II and tier-III cities in the State. If they decide to start operations in places other than Bangalore, we are ready to give land to them within 24 hours,” the Minister told presspersons here on Friday.

Tata Motors vendors' demands to be placed before state govt

Tata Motors vendors' demands to be placed before state govt

Published on Mon, Sep 29, 2008 at 20:40 , Source : CNBC-TV18

Here is a verbatim transcript of Swati Khandelwal’s comments on CNBC-TV18.

Tata Motors has asked its vendors for their demands in order to negotiate with the state government on their behalf, reports CNBC-TV18 quoting sources. The company is in the process of short listing states for Nano's mother plant. The car may be rolled out on time from the satellite plant, which is Pant Nagar. Tata Motors is trying to get as much compensation to recover the Rs 1,500 crore loss it incurred.

The vendors seek the same sops and benefits as may be provided to Tata Motors. The vendors got no sops in Singur, all the benefits were given only to Tata Motors. The vendors investment ranges anywhere from Rs 1 crore to Rs 20 crore odd. That investment will have some losses and they want to cover as much losses as they can and get the best deal out of the three states that they are looking at.

Menawhile, efforts to woo Tata Motors continue. The Chief Minister of Karnataka BS Yediyurappa, has written to Tata motors inviting them for further discussions on the possibility of the Nano plant in Dharwad. He has again made an offer of maximum support from the state government.

Tata Motors will respond on October 3.  Tata Motors has already surveyed two sites in Dharwad for the plant.

Farmers in Dharwad eagerly await the Nano plant

Farmers in Dharwad eagerly await the Nano plant

Gururaj Jamkhandi - Business Standard

Dharwad September 27, 2008, 0:07 IST

Some farmers in Singur might be vehemently opposed to the acquisition of land for Tata Motors’ Nano car factory. But in Dharwad, 425 km north of Bangalore, farmers couldn’t be more elated at the prospect of the car plant being relocated on their land.Most of them can’t wait to sell up in this arid region in the Mummigatti-Neeralakatti village Panchayat where agriculture has been a losing proposition.

The possibility of relocating the mother plant of the world's cheapest car with an annual capacity of 500,000 here was strengthened last week when a Tata Motors team led by Managing Director Ravi Kant met Karnataka Chief Minister B S Yeddyurappa in Bangalore.

The chief minister has reportedly offered to match the tax breaks and other benefits the West Bengal government had given Tata Motors plus 1,000 acres of land and other facilities. The Tata group is also likely to be welcomed in Dharwad because it has been at the centre of the virtuous cycle of industrialisation and job creation in the area.

In the early 1980s, the Karnataka Industrial Area Development Board (KIADB) had acquired 1,500 acres of land near Belur on the Pune-Bangalore national highway.

The initiative was taken by then Industries Minister S R Bommai after the Tata group had shown interest in setting up a factory in Dharwad. The state government allotted the company 680 acres of land, but the promised factory did not materialise for unspecified reasons.

It was only through the efforts of a later State Industries Minister, R V Deshpande, that the group set up two units — Tata Equipment Construction Company (Telcon) and Tata Marcopolo, a joint venture with a Brazilian company. Now, the state government is ready to offer Tata Motors another 1,000 acres of land near these two units.

In the 1980s, the state government had paid farmers Rs 12,000 per acre against a market price of Rs 1,200 per acre.

The Raitha Jagruti Samiti, an association of land losers that was formed, ensured that the compensation reached the farmers without the intervention of lawyers.

"We are happy with the compensation paid to us. The farmers will be happy to part with another 1,000 acres of land, provided the KIADB compensates them adequately,” said R S Patil, whose lands have been acquired.

Over the period the Tata group has provided employment to technically qualified people among land-loser families. Members of the families whose lands were not acquired were also accommodated.

“There is no question of opposing the establishment of a Tata unit here. All the farmers want is good compensation," Patil said.

The present market price of the land here is Rs 10 lakh to Rs 12 lakh per acre and farmers expect around Rs 15 lakh per acre.

Dharwad North MP Prahlad Joshi, who has evinced keen interest in getting the Tatas to Dharwad, said Tata will not face any Singur-like problems here.

"We will take the farmers into confidence while acquiring their lands. It will be a smooth affair because we are determined to safeguard the interest of farmers," he asserted.

The going may not, however, be so smooth. I B Ambannavar, who has lost a large chunk of land and will be losing some more in the event of further acquisition, said issues over compensation remain.

"The KIADB rules regarding land acquisition and payment of compensation are old-fashioned and redundant,” he said.

His chief complaint is that KIADB excludes pot-kharab zameen (that part of the land that is not cultivated) from compensation. “Farmers want this land to be taken into account,” Ambannavar said.

Meanwhile, the Socialist Unity Centre of India (SUCI) has opposed the development of industries on farmers' land. "Agricultural land should not be handed over to capitalists. It should not be converted into industrial belt," a recent statement from this outfit said.

But it has little support from actual land losers. "There are some people and organisations who oppose any project for the sake of opposing it and it has become their habit and business. It will not have any impact on farmers who are willing to part with their land," said Bheemanna Dindalkopp, a farmer from Neeralakatti village.

Indeed, the supporters of the Nano factory appear to outweigh the detractors. V P Linganagoudar, president of the Hubli chapter of the Karnataka Chamber of Commerce and Industry, said the chamber would be happy to welcome Tata's Nano manufacturing unit to Dharwad.

"It will certainly generate huge employment opportunities — both direct and indirect — and contribute to the overall growth,” Linganagoudar said, urging the chief minister to make all possible efforts to ensure that Tata Motors opts for Karnataka over other contenders like Gujarat, Uttarakhand and Maharashtra.