Despite the COVID-19 pandemic, the flow of investments into Karnataka in the second quarter of this financial year stood at ₹19,959 crore, which enabled the State to secure the third place across States in terms of quantum. In terms of number of projects, the State secured first place with 287.
Speaking to The Hindu, Major Industries Minister Jagadish Shettar said the government has cleared investments entailing ₹22,000 crore in August-September. During January-July 2020, total fresh investments in the country stood at ₹2.87 lakh crore and Karnataka alone bagged 1.16 lakh crore investments, constituting 40% of the total investments, Mr. Shettar said.
He attributed it to measures such as amendments to 18-year-old Karnataka Industries (Facilitation) Act, new industrial policy and a host of other policy and administrative measures that made Karnataka ‘one of the attractive destinations’.
The changes in the Karnataka Industries (Facilitation) Act, 2002, provided temporary clearance to the manufacturing industry to establish industry and commence commercial operation, giving a three-year window to obtain all clearances.
Besides investments in and around Bengaluru, many industrial areas in the north Karnataka region have been attracting investments. A recent State High Level Clearance Committee (SHLCC) meeting has cleared ₹3,540 crore investment of Aequs SEZ Private Limited to develop a consumer electronic and durable goods cluster in Dharwad. This would be the first sector-specific investment in line with the Narendra Modi-led government’s Atmanirbhar initiative, Mr. Shettar said.
The SHLCC on September 30 cleared investments of six proposals worth over ₹15,000 crore. More than two-dozen pharmaceutical industries have proposed to invest in the Kadechur industrial area in Yadgir district and most of the firms were from Hyderabad, Mr. Shettar said.
All these investments will revive the cash-strapped economy of the State which had already been hit by the pandemic, floods, and shortfall in revenues owing to reduction in GST compensation by the Centre, experts said.
