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Karnataka wins mega steel, power investments

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IT lags on Day 1 of Global Investors Meet; two-day event to fetch Rs 3.5-lakh cr.

Investment intent: (From left) The Karnataka Chief Minister, Mr B. S. Yeddyurappa; the ArcelorMittal Chairman and CEO, Mr Lakshmi Mittal; the Wipro Chairman, Mr Azim Premji; the Aditya Birla Group Chairman, Mr Kumar Mangalam Birla; and the UB Group Chairman, Mr Vijay Mallya, at the inauguration of the Global Investors Meet 2010 - Karnataka, at the Palace Grounds in Bangalore on Thursday. - G. R.N. Somashekar
Investment intent: (From left) The Karnataka Chief Minister, Mr B. S. Yeddyurappa; the ArcelorMittal Chairman and CEO, Mr Lakshmi Mittal; the Wipro Chairman, Mr Azim Premji; the Aditya Birla Group Chairman, Mr Kumar Mangalam Birla; and the UB Group Chairman, Mr Vijay Mallya, at the inauguration of the Global Investors Meet 2010 - Karnataka, at the Palace Grounds in Bangalore on Thursday. - G. R.N. Somashekar

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Bangalore, June 3Stealing the show from the IT majors, companies in steel and power sectors were the big investors at the Global Investors Meet - Karnataka. With IT seeing very little investments on Day 1, Thursday belonged to the traditional manufacturing companies. The Karnataka Government's intention to ensure equitable development across the State was visible, with most projects being located in the areas that need development. "The State is developing five industrial corridors to take the benefits of industrialisation to the backward regions," said the Karnataka Chief Minister, Mr B. S. Yeddyurappa, at the inauguration of the two-day event. Around 400 investors will sign MoUs (memoranda of understanding) at the two-day meet for implementation of various projects, totalling an investment of over Rs 3.5 lakh crore and generating employment for 6.5 lakh people. The biggest investor in steel was not ArcelorMittal, the world's largest steel company, but a local company, Brahmani Industries Karnataka Ltd. Bellary benefitsWhile ArcelorMittal plans to invest Rs 30,000 crore in Karnataka, Brahmani Industries proposes to pump in Rs 36,000 crore to set up a 6-million-tonne-a-year integrated steel plant with a captive power plant. The projects of both companies will be located in and around Bellary district. The inaugural event saw several memoranda of understanding being signed across various sectors. Mr Lakshmi Mittal, Chairman and CEO, ArcelorMittal, was the first to ink an MoU with the Karnataka Government to set up a 6 mtpa steel plant and 750-MW power generation facility, employing around 10,000 people. (Brahmani's project promises to give employment to 25,000 people.)Mr Mittal said if the progress in Karnataka is ahead of others, the company's steel project in the State will get priority over projects in other States. JSW Steel plans to invest Rs 15,131 crore on capacity expansion and a captive power plant in Bellary, while Jindal Saw Pipes plans to set up a steel plant, again in Bellary, at Rs 130.88 crore. Bellary will get another steel plant, with Bhushan Steel setting up a 6 mtpa integrated facility at an investment of Rs 27,928 crore. Hazira Steel too signed an MoU firming up an investment of Rs 17,760 crore. Kalyani Steels and Bharat Forge (Rs 1,584 crore) too have proposed investments in power plants. Mangalore Refinery and Petrochemicals Ltd plans to invest Rs 8,656 crore in a coal-based thermal plant in Gulbarga. GAIL will lay a gas pipeline at an investment of Rs 4,544 crore. IT bigwigs join the actThe IT industry saw home-grown majors Wipro and Infosys Technologies marking their commitment toBangalore, the country's IT capital. Both companies plan to set up software development centres at Sarjapur (in the city). While Infosys will invest Rs 2,250 crore on its facility that will employ 18,000 people, Wipro will pump in Rs 537 crore on its new centre. Other sectorsBirla Cement plans to invest Rs 3,000 crore on capacity expansion, while Reliance intends to spend Rs 2,500 crore on a cement plant. The other investors include Shahi Exports (Rs 533 crore), Bombay Rayon and Scotts Garments (Rs 682 crore) for readymade garment exports, BEML (aircraft manufacture, Rs 316 crore), Zuari Fertilisers (urea plant, Rs 4,565 crore) and Narayana Hrudayalaya (Rs 990 crore on a 5,000 bed super speciality hospital near BIAL). Foreign investmentThe major foreign investors include Shell (R&D centre, Rs 1,376 crore), Lafarge (cement plant, Rs 1,500 crore) and Nestle (Rs 349 crore).

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Karnataka expects Rs 4 lakh crore investment at global meet

(This article was published in the Business Line print edition dated June 4, 2010)
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