Business Daily from THE HINDU group of publications
Tuesday, Jun 03, 2008
ePaper | Mobile/PDA Version | Audio


News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Opinion - Infrastructure
States - Karnataka
‘Restore confidence in industry’


The morale of industry in Karnataka is very low. People are very unhappy because of what has happened in the last four years. Industry was taken on, people were abused, and so investment has been going elsewhere. It is up to the new government to restore confidence in the industry.




MR T. V. MOHANDAS PAI, HUMAN RESOURCES CHIEF AND DIRECTOR ON BOARD OF INFOSYS TECHNOLOGIES

Rasheeda Bhagat

With change of guard in Karnataka and a BJP government assuming office, the obvious question is on the immediate priorities of the new dispensation. Over the last few years, Bangalore, once such a vibrant business destination, had been allowed to languish, with its infrastructure taking the biggest hit.

So what are the expectations of business houses from the new government and what should be its immediate priorities to steer the State through a new era of development?

Mr T. V. Mohandas Pai, Human Resources Chief and Director on Board of Infosys Technologies, does not shy away from a blunt analysis of the pitfalls, particularly in the infrastructure front, that have plagued the State, particularly Bangalore. “People have very high expectations from this government mainly because it has a majority and will hopefully last five years. That is very important as Karnataka has seen instability over five years and suffered.”

But over the years, he says, industry has lost confidence in the State government. “The morale of industry in Karnataka is very low. People are very unhappy because of what has happened in the last four years. Industry was taken on, people were abused, etc., and so investment has been going elsewhere. I don’t know how industry will work with the new government; it is up to the new government to restore confidence in the industry.”

For a starter, he says, “the new chief Minister should clearly send a message to all industrialists that they are welcome in Bangalore. Right now, they don’t get the feeling that they are wanted here.”

He explains that during the last three years “85 per cent or more approvals in the high-level committee for industry have all been for real-estate projects, most of them near Bangalore.” But nothing concrete happened. “Actual users — people who set up their own industries — have not been getting land. They should be told: Please come to Karnataka we will help you. Even if the government does not have the land to give industry, it must create a process whereby private people can buy land from farmers at market prices. They can then go to the government which can do a planned conversion of that land to industry. If I buy land from the farmer, I will pay a higher price and why should the government have any objection if it is done with his consent? I’m not asking the government to acquire the land for me or to force the farmers to sell to me.”

But the problem, he points out wryly, is that no government wants to let go control over land. “And the process of land conversion is so onerous, so painful and so corrupt that it puts off industry.” The ideal thing, he suggests, would be to enable conversion of such land within 30 days after which it can be handed over for industrial/corporate use. “But this is not happening, because the government approval at the high-level committee is not worth anything and you have to go through the process again and again.”

Land and corruption

A single change in policy on this front will get dramatic results. “Every government tells industry you go there and we’ll do this or that, but these days who believes the government? Nobody! But if this government can effect quick conversion of land, industry will do the rest in terms of power generators, water requirement, etc. But the most basic requirement is land. Give land to us at market value. Nobody is asking for subsidy. If this government can demonstrate commitment in this area, it will make a vital difference, because everybody makes money on land, whatever government it might be and hence they don’t want to part with control on land. If this government wants to restore confidence in industry, they must ease these restrictions and make the process open and transparent to show that it is serious and committed about industrial growth in the State.

Mr Pai says the CII had recommended to the earlier government to start an economic super corridor from Bidar to Gulberga, Raichur, Davangere, Tumkur and Bangalore, and taking one spur to Krwar, another to Shimoga and Mangalore on this road, and one more going down to Mysore and Bangalore. “It should be a 6-lane road expandable to 8 lanes, with land in the middle for the railway line to run. This would take care of the requirement of the next 30-40 years, and at every 50 or 100 km they should be about 2,000 to 5,000 acres of land which could be acquired for industry at market rates.”

If done, this would result in economic transformation in North Karnataka, through the creation of infrastructure for setting up industries in the region.

And, since Bidar is only about 150 km from Hyderabad, just as Hosur is close to Bangalore, “Bidar can feed off the Hyderabad infrastructure; one could land in Hyderabad and reach Bidar in two hours, if we build a good road from Bidar to Hyderabad border. This might cost Rs 15,000 crore but has to be done because it will dramatically improve the infrastructure in North Karnataka.”

Bangalore Roads

Coming to the immediate needs of Bangalore, Mr Pai says the biggest challenge for Bangalore citizens is traffic, and if serious steps are taken, results can be seen within six months. “First, they must complete the Nandi road — 95 per cent of Nandi road is complete, only about 500 metres remain. The Governor had approved the entire scheme including the road to Mysore; this should be completed within 2-3 months as it will dramatically improve to the traffic flow in south Bangalore.”

Also, four roads leading out of Bangalore in various stages of work need to be completed. These include the road from Yeshwantpur to Peenya (“which is in a complete mess and traffic is crawling”); on the airport road the work that has been started from the Golf Course to the Hebbal flyover should be completed; as also the road to Whitefield and the Hosur road. “These four are the arterial roads for Bangalore and need to be completed to improve traffic conditions.”

His deadline is three months! When you express surprise, Mr Pai says: “Infrastructure work should be done in three shifts, seven days a week. But we have people working 5-6 hours a day, with no equipment 5 or 6 days a week!

Coming to the funds required, the former Infosys Finance chief says, “All this costs only a small amount of money. They have to push the contractors.”

Next on his list are the peripheral ring roads; “about 160 km, which was talked about from Mr S. M. Krishna’s time. The land has to be acquired, orders issued and funding closed. This will take two-three years to complete. But at lest if they compete the acquisition which is at an advanced stage and take a decision, that will help. Also, tenders should be issued for the inner ring road at Bangalore, and they must redo the major arterial roads of Bangalore which are full of potholes, and muck.”

If the BJP government can show these results quickly, “traffic will improve dramatically and there will be hope in the hearts of people.

Education

Mr Pai says the government also needs to address educational needs in areas such as North Karnataka. “In the districts of Raichur, Gulberga and Bidar the pass percentage in Plus Two is only 20 per cent which is absurd. That shows the quality of education. Why should these children suffer?” More teachers should be appointed and government scholarships — about Rs 10,000 a year for a child — given for the poor children on a merit basis. A Karnataka State scholarship was also needed for students who could not afford to pay for higher/professional education, and irrespective of caste of gender. Like there are scholarships for SC/ST students, this should be for the general population.

Mr Pai adds that all this the people of Karnataka expect from the new government with “of course good, corruption-free governance”.

Also, addressing the perennial debate on social equity versus growth, he says, “People ask should the government give subsidies or invest in infrastructure? I think the only way to settle this debate is by giving income support to the BPL sector. The government should run a massive financial inclusion programme, identify BPL families with less than Rs 60,000 annual income, and give a monthly grant of Rs 500 per person for 10 years. Open a bank account and transfer the money in the name of the woman of the house. They have the choice to use this for food, education or whatever. We should not give subsidy on rice, wheat, etc and distort the system. This will empower the BPL sector, and the remaining money can be spent on infrastructural development. We have to settle this debate for once and all. Or else you come out different schemes now and then and from most schemes the money is siphoned off.

But, Mr Pai cautions Mr Yeddyurappa and his team, people don’t have much patience. “The first three months is the honeymoon period; if in this period the government doesn’t take decisions, make announcements and show some results, the hope and confidence that people now have will be gone. Generally people wait for three-six months before giving up hope!”

(Response may be sent to rasheeda@thehindu.co.in)

Related Stories:
A gala BJP debut in South
Infrastructure development high on Karnataka industry wishlist
Development is priority: Yediyurappa

More Stories on : Infrastructure | Karnataka | Politics

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Responding to high food prices


How to keep clients from testing competitive waters
Reinventing the ‘Maharajah’
‘Restore confidence in industry’
Communicating for success
How justified is public expenditure on government schools?
Inclusive growth
Duty drawback


Smartbuy



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line