K'taka hopes to attract $120 bn investments

NEW DELHI, INDIA: Despite political turmoil, Karnataka is hopeful of attracting investment of up to $120 billion in sectors like power, auto, IT and aerospace during the second global investors summit in June this year, a state minister said on Thursday.

"Nearly Rs.6 lakh crore ($120 billion) worth of investment commitment is expected at this year's meet," minister for Large and Medium Scale Industries Murugesh R. Nirani told reporters here.

The expected investment will help create over 10 lakh jobs, apart from improving infrastructure and boosting overall economic growth in the state, the minister said.

Nirani said the state had attracted investments to the tune of $87 billion during the first Global Investors' Meet held in June 2010.

The second Global Investors' Meet is scheduled to be organised in Bangalore on June 7-8.

"The event is aimed at bringing together business leaders, investors, corporations, thought leaders, and policy and opinion makers," Nirani said at a press meet here.

In a bid to woo domestic and overseas investors, the Karnataka government has planned a series of roadshows and meetings with potential investors.

Officials said Karnataka chief minister Sadananda Gowda would visit the US in April to woo investors.

Major Indian IT firms are based in Bangalore. Their businesses have been affected negatively in the last couple of years due to the protectionist policies adopted by the US government to discourage outsourcing of jobs.

Gowda also held roadshows and met investors in the national capital on Wednesday.

The first investor meet took place in June 2010 under the leadership of then chief minister B.S. Yeddyurappa, who stepped down in July last year following his indictment by the Lokayukta over illegal mining in the state.

Over 7,000 delegates representing 2,000 companies from 21 countries and 21 states participated in the first edition of the meet, which generated investment commitment worth Rs 3.92 lakh crore.

The minister said nearly 62 per cent of the memorandum of understandings (MoUs) signed during the June 2010 meet were in various stages of implementation, while 36 units had already taken off. Another 36 are in various stages of implementation and 250 units are in the pipeline.

Nirani said delegate participation as well as investment commitment were likely to rise sharply in the second edition of the meet.

Referring to a World Bank report, Nirani said Karnataka was ranked as the number one investment friendly state in the country. It is number three in terms of attracting foreign direct investment (FDI).