Conversion of promises to projects will be better this GIM: Industries Minister Nirani

This time, the District Collector will be the chairperson to approve projects of up to Rs 15 crore, Nirani said

Murugesh Nirani. Credit: DH Photo

Karnataka hopes to attract more than Rs 5 lakh crore in investment and generate five lakh jobs through the Global Investors Meet, which will start on November 2. In an interview, Karnataka Industries Minister Murugesh Nirani told DH’s Prathik Desai how he planned to ensure better conversion of memorandum of understandings (MoUs) into actual investments and the sectors that were likely to see most interest. Edited excerpts:

In the past, we have seen a lot of MoUs failing to convert. What are you doing this time to ensure a better conversion?

Conversion ratio will be much better than the previous year. Because, whatever MoUs are going into signing at the GIM, will be first cleared either in the Single Window or the high-level committee clearance. At that time, we will go through their balance sheet, net worth, land availability, water, power and other utility availability, and only then approve the project for the signing of the MoU.

How is the State Level Single Window Clearance Committee in Karnataka different from its peers in other states?

This time, the District Collector will be the chairperson to approve projects of up to Rs 15 crore. For projects of above Rs 15 crore and up to Rs 500 crore, the LMI (Large and Medium Industries) Minister is the chairperson. And for those above Rs 500 crore, the Chief Minister will be the chairperson.

Do you have a target set for the conversion rate?

We are thinking of more than a 75% conversion ratio at the GIM. And it is possible also.

Big conglomerates including Vedanta, Reliance and Adani are expected to be a part of this GIM. Are there specific sectors that the meet will focus on?

Gautam Adani’s son Karan Adani is coming to the function and will be announcing investment in the energy sector. He has also shown interest in the service sector. Even in green energy, we see a lot of interest. Jindal is also signing about Rs 42,000 crore of MoU.

We are expecting nearly Rs 2 lakh crore worth of MoU signing in just the energy sector.

What is the government doing to attract investors towards Karnataka over states like Andhra Pradesh, Telangana and Gujarat that have scored better in terms of ‘Ease of Doing Business’?

Compared to other states, Karnataka has more opportunities. The state has a good climate, better universities and education system, more skilled and semi-skilled labour and is already an investor-friendly state based on the strong foundation laid in the state 100 years ago. In FDI (Foreign Direct Investment) too, we have ranked first in the last four quarters. About 38% is our share.

How do you make potential investors think beyond Bengaluru?

For this precisely, we started a new FMCG cluster on Friday in Dharwad. We also signed a project worth Rs 22,000 crore out of which the government is giving a 20% investment subsidy. We are also giving a 3% GST subsidy and labour incentives. About 20 projects have already been cleared beyond Bengaluru. About one lakh employment generation has been done in the Dharwad-Belagavi division.

Is there a grievance redressal mechanism for investors?

Last year, we started Kaigarika Adalat where the investors can give in writing the problems they face and our teams, which include IAS officers, will go to their doorstep to solve their issues. This is attracting investors more towards Karnataka instead of other states.

There were concerns raised around Rs 4.5 crore being spent to make a promotional video for the GIM. Has this been cancelled as per your request?

100% it has been cancelled. Maybe it is worth that amount, or maybe not. But I do not feel it is worth that amount in today’s situation. We have to reduce the expenses, wherever possible. Nobody will be investing by seeing the video. They (investors) will look at the infrastructure before investing. So, I wrote a letter to the commissioner and they cancelled it.