Wait continues for more major industries in twin cities Hubballi-Dharwad

The long-pending demand for the establishment of more major industries which generate more employment, and support the growth of smaller industries in the region, especially in Hubballi-Dharwad, had seemed to be getting fulfilled when industrialists signed MoUs to invest Rs 72,000 crore, seven-and-a-half months back.

The MoUs signed between various industrialists and the government at the ‘Invest Karnataka-Hubballi’ investors’ meet held in the City on February 14, included proposed investment of around Rs 62,000 crore in Dharwad district alone. However, the lockdown and Covid-19 situation which severely affected the industry sector, hindered investment interests in becoming a reality.

With most of the industries in the twin cities being micro, small, and medium enterprises (MSMEs), they are waiting for the establishment of more large-scale industries in manufacturing sector here, so that the MSMEs can grow, generating more jobs for locals, and contributing more to the local economy. This dream has remained largely unfulfilled so far.

In the much-hyped investors’ meet, MoUs signed for investment in Dharwad district included Rs 50,000 crore plan by Rajesh Exports Limited to set up an electric vehicle and lithium battery manufacturing plant, Rs 3,000 crore investment plan by Natcap Power Private Limited, and Rs 2,060 crore plan by Jettwings Aerospace & Aviation.

Approvals

The Microfinish Pumps submitted a proposal to Karnataka Udyog Mitra seeking approval to set up a plant on its own land, investing Rs 33.5 crore. This was the first company among those who signed at the investors’ meet, according to sources in the Industries Department. It is also said that Colours Plus, MYK Polymers, and Ionidea have also shown interest in the go ahead with their investment plan.

According to Large & Medium Industries & District In-charge Minister Jagadish Shettar, discussion is on with many investors who have signed MoUs, and the response is positive.

“Among MoUs signed in Hubballi meet, 25 proposals to set up pharmaceutical units at Kadechur area in Yadgir district, and some proposals for Hubballi-Dharwad, including Microfinish’s, are approved. Discussion is on with major investors like Rajesh Exports, regarding subsidy, tax concession and other issues,” he noted.

“There will be no problem of land for industries, as land required is being developed at Belur-Kotur, Itigatti, and at Mummigatti. Hopes are there about investment by large industries, but it will take time due to Covid situation,” said District Industries Centre (DIC) Deputy Director Shivaputrappa Hosamani.

‘Make local vendors’

Ramesh Patil, who runs the Patil Electrical Works Private Limited, said, “large industries do not maintain inventory now-a-days, and they want daily supply. If they are located in this region itself, it would be easier for SMEs to supply them, and to grow.”

Efforts to bring the Hero Motocorp, and Arecelor Mittal to this region were unsuccessful, and investment promises made in previous investors’ meets were not fulfilled. Some existing large industries are not supporting the local vendors. The government should not just attract huge investment, but should also frame guidelines for large industries to handhold local SMEs and procure material from them, Patil added.

“Small scale industries which are already severely hit by lockdown and Covid situation can survive only if large industries come here and make local industries their vendors. The government has been urged to set up a plant to manufacture material required for the defence sector, so that SMEs here can be benefited,” said North Karnataka Small-Scale Industries Association (NKSSIA) president N S Biradar.

FMCG cluster planned

For developing a fast moving consumer goods (FMCG) cluster, 500 acre of land is reserved at Mummigatti, and a vision group is also formed under the leadership of Ullas Kamat of Jyoti Labs. However, all said and done, the region is definitely in need of large industries being set up here so as to improve the job opportunities, and for economic prosperity of the people here.