Karnataka Ceos Rap Govt For Losing Business

The `loss of Microsoft' to Hyderabad in Andhra Pradesh will probably haunt the Karnataka government for years.

This became clear on Monday when chief executive officers (CEOs) of the state's major industries criticised industry minister H Shivappa.

They criticised the J H patel government for failure to attract investments and provide infrastructure.

The immediate provocation for the industrialists was the government's failure to grant an interview to a US-based NRI infotech industrialist, who wanted to set up a Rs 6 crore foundation for destitute children in Bangalore.

Unable to get a response from Karnataka, the NRI industrialist in question moved ahead with his plan to Hosur in neighbouring Tamil Nadu.

"Is J H Patel sleeping?" asked a veteran industrialist at a meeting organised by the Federation of Karnataka Chamber of Commerce and Industry (FKCCI) to honour Shivappa.

"Karnataka has lost a great opportunity," lamented FKCCI president K Lakshman. "These CEOs will now forever carry a negative picture of our state."

Karnataka, once high-tech industry's favourite destination, is now losing out to other states, the FKCCI members pointed out.

The main reason is the lack of infrastructure: no power, bad roads, no ports.

A report by FKCCI's industry committee said: "Bangalore has begun to slide in the index of the most preferred city among investors.

The talk now is that of flight of capital, relocation of corporate houses to cities like Hyderabad and Chennai."

Even though the state has a major port at Mangalore, lack of facilities are prompting industries to use Chennai port for goods transport.

It attributed the absence of any taker for the prestigious International Technology Park Ltd, a Tata-Singapore led consortium project in Whitefield, to the unapproachability of the place.

`Red tape' continues and the much-publicised `single window agency' exists only on paper, the FKCCI said.

The industry minister, who was visibly uneasy at the repeated reference to Hyderabad, took pains to convince the industry delegates that, Karnataka was not losing the edge in attracting capital.

"We still continue to be one of the leading state in attracting foreign investment. We've more MNCs here than in any other state," he said.

The Karnataka industry secretary said that contrary to the impression created by the media, a large number of foreign investors have approached the state for projects. He noted that software technology parks would be set up up at Hubli, Mysore, and Mangalore, in addition to the one at Bangalore. he added that an `auto complext' at Belgaum is also underway.