Karnataka ups GIM investment goals after strong start

Karnataka CM Basavaraj Bommai has already cleared investment proposals worth Rs 2.8 lakh crore, FM Sitharaman said

Karnataka has raised its fund-raising goal tied to the Global Investors’ Summit by Rs 2.5 lakh crore to Rs 7.5 lakh crore after seeing a promising start to the event, Union Finance Minister Nirmala Sitharaman said Wednesday.

“Initially, when this global meet was planned, their expectations and targets were somewhere in the range of 5 lakh crore. Today, that has moved upwards to Rs 7 and a half lakh crore,” she said on the first day of the three-day event, adding that Karnataka CM Basavaraj Bommai has already cleared investment proposals worth Rs 2.8 lakh crore.

“The MoUs that have come up have come up in newer areas, the sunrise areas - whether it is the hydrogen mission that the GoI announced, green ammonia, whether it is making sure that new corridors are coming up for industries, connecting with the ports (and) newer mines,” she said. A memorandum of understanding, or MOU, is a nonbinding agreement that states each party's intentions to take action, execute a business deal, or form a new partnership.

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Sitharaman’s comments came on the event’s opening day which attracted investment promises worth over Rs 5.6 lakh crore.

"Aim is to convert these investments into reality,” Bommai said. “We have already approved Rs 2.8 lakh crore before this week. In the next three months, we will decide about the rest of the investments."

The CM appealed to investors to work towards converting these promises to projects.

"We are serious. The government is serious and the investors also have to be serious. We mean business. Whatever has been signed today has to be converted to reality," he said.
Out of the Rs 5.6 lakh crore worth investments that were signed, green hydrogen and derivatives space bagged the lion's share of around Rs 2.91 lakh crore.

Domestic firms such as ACME group, ReNew Power, ABC Cleantech will bring in Rs 50,000 crore each to set up export-focused green ammonia and other derivatives manufacturing plants in the state.

As Asia's third-largest economy gears up to meet its net zero goals by 2070, private players in the renewable energy sector poured in about Rs 1.27 lakh crore of investment across solar, wind, hydro and hybrid projects. Vedanta led the pack with about Rs 80,000 crore of investment.

The event also saw MoUs worth Rs 47,475 crore being signed in the electronic designs and manufacturing space, with companies like ISMC planning to invest Rs 22,900 crore in the state.

This comes at a time when India is trying to reduce its reliance on other countries for its chip requirements.

"Our next mission is to reduce India's dependence on imported electronics. We will begin by manufacturing semiconductors and reduce the $16 billion import bill on this account," said Sterlite Power Managing Director Pratik Agarwal.

In the infrastructure and logistics parks segment, MoUs worth Rs 43,500 crore were signed, with Airtel planning to invest about Rs 15,000 crore.

"We will be launching 5G in the entire Karnataka by December or January," said Rajan Bharti Mittal, Vice Chairman, Bharti Enterprises.

The construction industry saw investments to the tune of Rs 25,024 crore, while e-mobility, aerospace & defence and data centre sectors bagged investments worth Rs 22,906 crore.