Karnataka: Global Investors' Meet postponed to February next year

Bengaluru: The state government has decided to postpone the Global Investors' Meet from the third week of November to the first week of February next year. Industries Minister Deshpande said on Wednesday that in the wake of widespread drought, the state government will hold GIM on February 4, 5 and 6.

Around 136 taluks in the state are reeling under drought and the reservoirs are not even 50 per cent full. The loss in the farming sector is estimated to be around Rs 15,000 crore and the power situation remains grim. However, as the energy department says that the power situation would be improve by June-July 2016, when around 2,300 mw would be added to the grid, the government has decided to hold GIM early next year, he said.

‘Biz ranking not acceptable’

Echoing the sentiments of neighbouring Tamil Nadu and Maharashtra, Karnataka on Wednesday urged the Centre to reassess the report on “Ease of Doing Buisness”, where the state was ranked ninth, after states like Jharkhand, Rajasthan and Chhattisgarh.

Chief Secretary Koushik Mukherjee chaired a meeting of the Department of Industries and Commerce, where a series of issues pertaining to red-tapism and streamlining of investment procedure were discussed.

Industries Minister R.V. Deshpande and Mr Mukherjee said that the state government did not agree with the report, which was prepared by the Union government and sent to the World Bank.

“The World Bank had set some parameters to be followed to make states business friendly. Most of them were about taking the procedures online. The suggestions also involved eight departments, including power, Urban Development, Pollution Control Board, Labour and Revenue. While many of them have been done, some are being streamlined. But whatever has been done did not come in the parameters suggested. We will ask for reassessment of the report,” Mr Deshpande said.

Giving statistics of investment in the state during the last ten years, Mr Deshpande said that Karnataka stood fourth in the country in terms of GDP, industrial presence, while attracted third largest FDI in the country. Karnataka is known to be IT capital, but is also leader in other industries. At the moment, Karnataka is the destination for startups in defence, pharma, tourism and manufacturing segments. “We are the leaders in many sectors, but I do agree that a lot more has to be done. We have to cut red-tapism, work more on going online and ensure that the investments would reach beyond Bengaluru. We are doing it,” Mr Deshpande said.

“Ease of Doing Business does not mean that states like Rajasthan, Chhattisgarh or Jharkhand are attracting all the investments. It requires an environment. The state government is coming out with Startup Policy, Retail Business Policy and Food Processing Industrial Policy soon. We have to enjoy investors’ confidence to keep investments flowing,” he said.