THE biennial Global Investors Meet (GIM) is an important part of the Karnataka government's strategy to attract investors, by playing the role of a catalyst and facilitator at once and showcasing the State as an ideal investment destination where industrial policies are transparent and investor friendly. The government-organised summit is aimed at bringing together business leaders, investors, thought leaders, policy- and opinion-makers, government representatives and corporations on one platform. Through the GIM, the State government seeks to highlight its commitment to timely approval and implementation of projects.
Murugesh R. Nirani, Minister for Large and Medium Industries, told Frontline that the GIMs are a great way for investors to understand the opportunities available in Karnataka. He said one of the highlights of GIM 2012 would be the signing of a memorandum of understanding (MoU) for the running of a high-speed train. In its first phase of operations, the train will operate between Chennai, Bangalore and Mysore.
Nirani said: During my recent visit to Japan, I was struck by the efficiency and practicality of the high-speed trains that run between Osaka and Tokyo. Fully automated and running at an average speed of 275 kilometres an hour, they carry 1,500 to 2,000 passengers on a trip. Remarkably, they have not been involved in a single accident since 1964 [when they started operating]. We are proposing a similar train between Bangalore and Belgaum via Hubli/Dharwad. If it is successful, there will be a service between Bangalore and Gulbarga.
Nirani said the cost of the project would be around Rs.200 crore for a km of track. It is likely to be implemented on BOOT [built, own, operate and transfer] basis. The government will acquire the land for the project, he said.
GIM 2012 will be held at the Bangalore International Exhibition Centre on Tumkur Road on June 7 and 8. Its objective is to attract investments to the tune of Rs.5 lakh crore, which will help create at least 10 lakh jobs and double the gross State domestic product by 2020. The event will focus on bringing investments into sectors such as micro and small enterprises, textiles, automobiles, aerospace, minerals, pharmaceuticals, petrochemical industries, infrastructure development (water supply, ring roads, airports and helipads and industrial corridors), energy, higher education, tourism and health. Ernst & Young has been appointed as knowledge partners for the event to be conducted at a cost of Rs.50 crore. A number of roadshows, both abroad and in Indian cities such as New Delhi, Mumbai, Chennai, Mangalore and Hyderabad, were held with Nirani himself leading the delegation.
During GIM 2010, a total of 389 MoUs, with an investment of Rs.3.92 lakh crore, were signed. Of these, 38 projects totalling an investment of Rs.5,369 crore have been completed, while 39 projects totalling Rs.21,056 crore are under construction. Additionally, 277 projects are under implementation at a total investment of Rs.2.94 lakh crore. Nirani said that the conversion of projects from proposal/MoU stage to implementation had been very satisfying.
While there is little doubt that GIM 2010 was a success, critics argued that the government could have done much more to ensure that it was not just an exclusive big ticket promotion programme. They want the government to adopt a more broad-based approach and encourage medium, small and micro industries during GIM 2012. The critics, who had described GIM 2010 as the steel summit since nearly two-thirds of the MoUs signed were for iron and steel plants, said the State should look at other sectors and regions, not just Bellary district. The district cornered 40 per cents of the projects at GIM 2010.
Nirani said that GIM 2012 would be all about more sectors, small and big, and would cover several regions of the State.
Ravi SharmaCOMMents
COMMents
SHARE