Despite several efforts by the State government to push investments in tier II and III cities, the Statewide investment pattern during the last four years (2016-17 to 2019-20) clearly reveals that entrepreneurs and industrialists are showing interest in investing only in and around Bengaluru, with the district bagging 31% of the total investments in medium-scale industries.
Though the State received ₹3,304.42 crore in investments in 491 medium-scale industries and generated 23,409 jobs in this period, Bengaluru Urban district received investments of ₹1,026.7 crore, providing jobs to 8,226 persons. In contrast, the neighbouring Bengaluru Rural bagged merely ₹166.31 crore, generating 521 jobs.
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The districts that received more than ₹100 crore in investment are Belagavi (₹241.6 crore), Mysuru (₹143.21 crore), Dharwad (₹163.86 crore), Ballari (₹106.4 crore), Chitradurga (₹152.69 crore), Raichur (₹106.4 crore), Tumakuru (₹189.13 crore), and Bidar (₹105.17 crore).
The periodic industrial policies brought out by the government have been giving encouragement to industrialists to invest in smaller cities and towns. But only retail industries, gas bunks and restaurants have been established in tier II and III towns. Many large and medium industries have not been showing interest in investment in these towns because of infrastructure bottlenecks, logistical issues, non-availability of manpower, and demand for goods and services, said an expert.
Data provided by the Industries Department revealed that three districts — Kodagu, Gadag and Chamarajanagar — did not receive any investment during the last four years. Interestingly, despite close proximity to the State capital, districts such as Ramanagaram (₹52.62 crore), Chickballapur (₹77.53 crore) and Kolar (₹75.89 crore) received small amounts of investment.
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Other districts that received negligible amounts in investment in the medium-scale sector are Yadgir (₹32.8 crore), Dakshina Kannada (₹22.85 crore), Kalaburagi (₹23.83 crore), Shivamogga (₹43.2 crore), Chikkamagaluru (₹25.8 crore), and Hassan (₹37.16 crore).
Recent initiatives
For reducing Bengaluru-centric development, Chief Minister B.S. Yediyurappa has said that the government will focus on development of airports in tier II and III cities and towns. Already, the Kalaburagi and Bidar airports have become operational. Under the ‘Ude Desh ka Aam Naagrik’ scheme, some airlines are providing services to smaller airports.
Large and Medium Industries Minister Jagadish Shettar said the 2019-24 Industrial Policy would given a lot of incentives in the form of tax holidays and subsidies to entrepreneurs keen to invest in tier II and III cites and towns. Enthused with the memoranda signed for the tune of ₹73,000 crore in investments during the investment summit organised in Hubballi last month, the department has proposed to hold investors’ meets at the divisional level to attract more investments, Mr. Shettar said.