Karnataka Minister M B Patil.
Credit: X/@MBPatil
Bengaluru: As he gears up for Karnataka’s Global Investors Meet, the state’s Minister of Large and Medium Scale Industries MB Patil, exudes a lot of confidence. He is betting big on the state’s premier position in the technology sector, while also chasing an expanded manufacturing dream. Speaking to DH’s Anushree Pratap, he talks of the various measures he has up his sleeve to bring in more investments. Edited excerpts:
What can we expect from the new industrial policy changes?
The new industrial policy has a flexible incentive option wherein it will be a production linked incentive or capital subsidies, either of which can be opted for. Apart from this, you have incentives for employment and more incentives for women employment. The third is for sustainability goals, in terms of incentives for using green power, and so on.
Also, Bengaluru is home to almost 400 plus of the 500 Fortune companies. Their R&D happens here, their product development happens here. But ultimately, the manufacturing happens in their own country or in other states. If they manufacture here instead, an additional 10% incentive will be given.
What can we expect as a result of the single window clearance system?
With single window clearance, developed with Microsoft, the time taken now should be cut down by minimum 50% in terms of ease of doing business.
Which emerging sectors contribute significantly to Karnataka’s GDP?
The highest is from electronics manufacturing, aerospace and defence, steel and cement, machine tools. These are key. We are also eyeing EV and artificial intelligence, semiconductor, as upcoming industries.
You have announced Rs 10 lakh crore as investments expected from the Global Investors Meet. How do you see them panning out?
Yes, we are expecting around Rs 10 lakh crore. And this time, we have been realistic, it should not just be on paper. At least 7 lakh crore, or 70% of this, has to be converted into real-time investments.
Bengaluru loses out to its neighbouring state capitals like Chennai and Hyderabad on account of high property cost. How does Karnataka plan to address that?
No, we cannot do anything much on the land prices. Land prices are higher in Bengaluru because of the IT boom. And we have a growth restriction also. In some of the states, the floor area ratio (FAR) is 7%, 8%, 10%, or even unlimited. But in general, growing international cities everywhere have higher land prices compared to others.
What has been the response from the Hubli cluster of FMCG manufacturing?
FMCG is down across the country. We have been talking to FMCG giants during roadshows; nobody is expanding now. Still, the Hubli cluster is doing well; the park has dedicated incentives - we have to withstand the downturn. We’re doing one more FMCG cluster in Bijapur also now. Dharwad, we have one. Beyond Bengaluru, we have zonal-wise incentives.