Karnataka: Covid-19 outbreak takes big toll on investment

BENGALURU: The Karnataka government , which signed MoUs for 54 projects worth Rs 73,741 crore during the Invest Karnataka meet held in February 2020, has managed to formalise 14 of them worth Rs 1,094 crore.


Officials, while stating that Covid-19 impact has led to poor conversion, said implementation will improve in the coming months as the government is working on multiple strategies to not just realise most of the proposals from Invest Karnataka, but also mop up fresh investments by attracting newer firms.

According to the industries department, over 31% of the Rs 1,094 crore investments finalised through 14 projects came from just one project.

“Hyderabad-based Bhagiradha Chemicals and Industries is setting up a plant in Yadgir’s Kadechur industrial area. The firm’s investment as per government approval is Rs 345 crore and the project is estimated to provide employment to 1,200 people,” a senior official said.

Of the 13 other projects, which together will invest Rs 749 crore and provide jobs to around 2,149 people, seven are by Telangana-based firms and one by a Gujarat company. The rest are from Karnataka.

“The meet happened in the second week of February and the very next month, the state was hit by Covid-19. But our department has been working relentlessly to ensure that more projects are realised. Our new strategies won’t be limited to just what happened at Invest Karnataka,” said Gunjan Krishna, commissioner for industrial development.

More than 70% of the 14 projects will come up in Yadgir, while the rest are shared between Belagavi, Dharwad and Hubballi.

Industries minister Jagadish Shettar said: “While there’s been a lot of thinking about creating opportunities and avenues outside Bengaluru, the decision to hold the meet in Hubballi was to showcase North Karnataka as a destination for industries...”

Shettar, while exuding confidence that the implementation rate would improve in the post-Covid scenario, said efforts are on to attract newer companies. “...We are in talks with multiple foreign firms as we speak. The department has identified several growth areas ranging from electronics to toys and from pharmaceutical to aerospace, and we are confident of seeing a large number of firms set up plants here in the near future,” added Krishna.