Potential investors queue up for land

State gets Rs 1,000 cr from Indian, foreign companies

Steel giants from both India and abroad that lined up to sign memoranda of understanding (MoUs) at the global investors’ meet (GIM) in Bangalore on June 3 and June 4 this year are now making a beeline to make the initial deposit towards land acquisition.

Within four months of the GIM, the Karnataka government has received Rs 1,000 crore from various companies that signed agreement. This includes ArcelorMittal India, Essar Steel, Posco of South Korea, Bhushan Steel, and Brahmani Industries. Among other companies that have deposited money for land acquisition include BEML Ltd, Dynamatics Technologies, IFCI and Amada.

“We are creating a land bank to facilitate the investors who have come forward to invest in the state. We have issued notification for acquiring 100,000 acres across the state. We are in a comfortable position as far as funds are concerned to pay the farmers for land acquisition,” V P Baligar, principal secretary, department of commerce and industries said.

Some of the projects approved at the GIM have taken off already. Companies like Nestle India, Gopalan Enterprises, Ashok Iron Works have started work on their projects.

In the case of the steel plant of ArcelorMittal, the state government has commenced the land acquisition process and has started compensating farmers.

Of the 389 MoUs signed at the GIM, as many as 137 companies involving an investment of Rs 2.43 lakh crore are moving very fast in implementing their projects in the state, he said.

“The response from investors is very good. Some more projects will take off in the next one month. Chief minister B S Yeddyurappa will lay the foundation stone for over 10 projects in November,” Baligar said.

He said, the state government has cleared 222 new projects after the global investors’ meet involving an investment of Rs 90,000 crore. During November, the high-level clearance committee headed by the chief minister will meet to clear some more fresh proposals involving an investment of Rs 35,000 crore. They include companies from Turkey and Egypt which had shown interest during the chief minister’s visit recently, he added.

Among other projects cleared during the investors’ meet that would take off soon, include the gas pipeline project of the Gas Authority of India Limited (GAIL). The company will start work on 800 km gas pipeline from Dabhol to Bidadi in December. The Karnataka Industrial Area Development Board (KIADB) will complete nearly 80 per cent of the land acquisition for the project by December. The GAIL has also started the tendering process, he told Business Standard.

KIADB is acquiring land at 20 places required for booster stations along the pipeline route. The gas pipeline laying work will be completed by mid-2012 and gas will be available for producing 12,000 Mw of power, he added.