Apart from being a loss to the State, the decision of Hero MotoCorp to establish its plant in neighbouring Andhra Pradesh has come as an embarrassment for Chief Minister Siddaramiah, who also holds the Industry and Commerce portfolio.
The loss of the Rs. 1600-crore project has also brought back into focus the absence of a full-time Industry Minister. Sampathraman, president, Federation of Karnataka Chambers of Commerce and Industry (FKCCI), said: “There must be a real ‘single window’ for clearances. Such costly lapses will have a bearing on industrial growth. He urged the political and bureaucratic set-up to do a “reality check on why we are failing”. The former president of the Bangalore Chamber of Industry and Commerce (BCIC) and member of the State Government’s Task Force on Manufacturing H.V. Harish said the BCIC had cautioned the State government about large-scale migration to neighbouring States. Adding to the government’s woes, the decision has come at a time when a delegation, led by Chief Secretary Kaushik Mukherjee, is in Japan to attract investments to the State, which is preparing for the Global Investors Meet.
Govt.’s viewADVERTISEMENT
However, State government officials argued that Andhra Pradesh had received huge tax exemptions from the Centre after the creation of Telengana and hence was able to be more aggressive in wooing investors.