Karnataka has roped in global management consultant Boston Consulting Group (BCG) to be its knowledge partner to help attract investment into the State.

“BCG has been roped in to promote Karnataka as an investment destination globally,” JC Madhuswamy, State Law and Parliamentary Affairs Minister, told reporters on Thursday after a Cabinet meeting. “The firm will be appointed for 12 months for a professional fee of ₹12 crore, plus GST.”

BCG is expected to help the State attract investments, create jobs and establish global linkages, as Karnataka plans to hold a global investors meet within in a year.

In another development, the Cabinet approved the transfer of Mysore Electrical Industries (MEI) and Karnataka Vidyuth Karkhane (KAVIKA) — both fully owned by the Karnataka government — under the State Industries and Commerce Department, to the Energy Department.

MEI manufactures switchgear, motor control gears, solid state electronic relays and allied switchgear equipment, ie, instrument transformers used in switchgear and other industrial applications. KAVIKA is known for making distribution transformers as well as for custom-built transformers.

Madhuswamy said the Energy Department — the major buyer of equipment from MEI and KAVIKA — is likely to see huge savings from this move.

Vijayapura airport

The State Cabinet has given approval to build a ₹220-crore ‘no-frills airport’ at Vijayapura in north Karnataka.

The Cabinet gave administrative approval to take up ₹95 crore worth of work related to the runway, apron and terminal building.

The Cabinet also offered a ₹2,500-crore loan to power supply undertakings to replay old dues and borrow afresh. According to Madhuswamy, Bescom (Bangalore Electricity Supply Company) gets ₹500 crore, Hescom (Hubli Electricity Supply Company) ₹400 crore, Gulbarga ₹1,000 crore, and Chamundeshwari ₹600 crore.

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