GIM effect: State gets Rs 2.2 lakh cr investment

About 52 pc of the companies which signed MoU are implementing the projects

Addressing reporters, Industries Minister Murugesh Nirani said the investors have deposited Rs 1,050 crore with the Karnataka Industrial Areas Development Board (KIADB) seeking land in various parts of the State. The KIADB has already acquired 80,000 acre of land under the Land Bank for industrial development, he added.

Various nationalised banks have come forward to provide term loans to the tune of Rs 1.5 lakh crore to investors. “Banks’ eagerness to lend money to the investors is an indicator to the success of the GIM,” the Minister said.

Among the major companies that have begun the process of implementation include steel giants, ArcelorMittal and POSCO, Essar Group and Bhushan Steel. The Government has already issued the final notification for land acquisition in Kuditini in Bellary, where ArcelorMittal has proposed to set up its six million tonne per annum capacity steel plant.
“Initially, the farmers there demanded more compensation. The issue has been almost settled now,” Principal Secretary to Commerce and Industries department V P Baligar said.

South Korean steel giant POSCO had inspected a location for its plant at Mundargi in Gadag district. But the land was handed over to Essar as the POSCO failed to take the decision within the stipulated time. “The South Korean company may finally choose Koppal. Another team of the company officials are coming to Bangalore shortly. They will finalise the location soon,” he added.

Asked whether POSCO is reluctant to invest in Karnataka, he said “the company usually takes a lot of time for planning. Once everything is finalised, it does not take much time to implement.”

Baligar said the Government has received over 1,200 applications, including those who signed MoU in the GIM, seeking mining leases. The Government will give priority to only those who have signed MoU with the Government to set up steel plants and to do value addition. The Government has signed 50 MoUs in the steel sector during the GIM.

Hearing by Spl DC

The Government has directed the Special Deputy Commissioner, Bangalore Rural District, to verify the authenticity of land documents in Devanahalli before acquiring it for industrial purpose.

A lot of complaints were received on people taking away compensation producing fictitious documents. The Government is paying a hefty compensation of Rs 60 to 75 lakh per acre near Devanahalli, Baligar said.

Besides, the Industries department has given Rs 10 crore to the BWSSB for ensuring the supply of 40 million gallon litre of treated water per day to the industrial areas in Devanahalli.

Audit of GIM expenses

In the wake of allegations of irregularities in organising the GIM, the Industries department has decided to conduct internal and external audits of all expenses related to the event.

Of the estimated Rs 29 cr expenditure, the Government is yet to clear bills to the tune of Rs five crore, and it will be done only based on the audit reports, Baligar said.

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