Wednesday, January 6, 2010

Karnataka clears 38 mega projects with Rs 1,38,322.71 cr investment - 70% of the investments are in the North Karnataka


Bangalore, Jan 5: As many as 38 mega industrial projects with a combined total investment of Rs 1,38,322.71 crore have been cleared by the B S Yeddyurappa-led BJP regime on Tuesday.

"This is the highest ever total investment proposals cleared by the State’s High Level Clearance Committee in a single day in the state,’’ the chief minister announced after the meeting.

Yeddyurappa, who is also the chairman of the SHLCC, said the 38 mega projects from globally renowned companies when implemented were expected create direct employment to 92,350 persons.

The selected companies would enter into memoranda of understanding (MoUs) with the state government during the global investors’ meet to be held in June this year and were expected to complete implementation of projects in two to four years, the chief minister said.

Among the companies, which have come forward with mega investment proposals, is the world’s biggest steel manufacturer Arcelor Mittal which will be setting up an integrated steel plant with a capacity of six metric tonne per annum along with a 750-MW captive power plant.

According to Industries Department Principal Secretary V P Baligar, Arcelor Mittal representatives have already visited the districts of Bijapur, Bagalkote and Bellary for identifying about 4,000 acres of land to locate their plant. Water would be supplied for the project from the Almatti reservoir, he said.

Similarly, South Korean steel giant Posco has proposed to set up a steel plant with a capacity of six metric tonne per annum with a 400-MW captive power plant at a cost of Rs 32,336 crore either in Bellary or neighbouring districts.

Another world leader in cement manufacturing, Lafrage would be investing Rs 1,500 crore for setting up its cement plant and 43-MW thermal power plant in Gulbarga.

The committee has also cleared two gas pipeline projects from the Reliance Group’s Relogistics and the Central public sector undertaking, Gas Authority of India Ltd (GAIL).

While Reliance (M/S Relogistics) will lay 455-kms of gas pipeline through Chennai-Bangalore-Mangalore at a cost of Rs 6,796 crore, GAIL will lay 746-kms of gas pipeline from Dhabol to Belgaum and Bangalore at a cost of Rs 4,544 crore.

These two pipelines are expected to help the industries as well as the state’s proposed gas-based power plants along the pipeline route.

Another industry major Shell has proposed to set up its R&D Centre in Bangalore at a cost of Rs 1,376 crore.

Other proposals which got clearance include that by Zuary Fertilisers and Chemicals for setting up an urea plant with a capacity of 11.55 million tonnes per annum in Belgaum at a cost of Rs 4,565 crore, an integrated steel plant to be set up at a cost of Rs 20,000 crore in Bagaklote by Surya Vijayanagar Steels and Power Ltd, oil refinery project at a cost of Rs 8,655 crore in Dakshina Kannada by Mangalore Refinery and Petrochemicals Ltd, a Rs 486-proposal by Tata Elexi to set up a hardware design and development facility near International Airport and an IT expansion unit by Wipro at a cost of Rs 477 crore near international airport.

Though the proposed investments are in 14 different sectors, a majority of them (Rs. 1,00,871.03 crore) are in Iron and Steel sector followed by Oil and Gas (Rs. 19,995 crore), Cement (Rs 7,945.24 crore), Fertilisers and Chemicals (Rs 4,565 crore) and sugar (Rs 1,415.16 crore).

Over 60% of the proposed projects and 70% of the investments are in the northern districts of the state, the chief minister said pointing out that the government was keen on redressal of the regional imbalances and ensuring the development of the backward northern Karnataka region,

Yeddyurappa claimed that the fact that more than 30 leading industries of the world and country have come forward to invest in the state had shown that Karnataka had become preferred destination for investors.
With these proposals, the government was confident that the global investors’  meet to be organised by it in June this year would be a success, he added.

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