August 22, 2008

Karnataka clears INR 636 billion investment projects

It is reported that Karnataka government has approved infrastructure and industrial projects estimated at INR 636 billion.

Mr Katta Subramanya Naidu industries minister of Karnataka said that the state high level committee on investments, chaired by Mr HD Kumaraswamy chief minister of Karnataka, had cleared 59 new industrial projects. Mr Naidu said that "The committee has approved 59 industrial and infrastructure projects, which are expected to create employment for about 1 million skilled and semi skilled youth. Of the total projects, 15 of them will come up in Bangalore Urban, 9 in Bangalore Rural, 7 in Mysore and 5 each in Mangalore and Bellary.”

The approved projects include
1. SEZs - 14
2. IT enabled services – 10
3. Biotech parks – 6
4. Sugar mills – 7
5. Steel projects – 5
6. Tourism projects – 4
7. Electronics hardware SEZ – 1
8. Steel Plants - 5
Rest 7 projects are in textiles, aviation, cement, steel and power sector.

Some of the important projects cleared are
1. Reliance Industries Ltd’s proposal to set up INR 2,400 crore gas based power project at Humnabad in Raichur. The 2x400 MW project will come up on 200 acres of land in Dhumansur village and will mainly meet the power consumption of its retail outlets across the state.
2. Arihant Ispat Ltd will set up a 100,000 tonne steel plant in Bellary district at a cost of INR 2.42 billion
3. Srirama Steel Holdings will invest INR 4.5 billion on a sponge iron plant in Bellary district
4. Dhruvadesh Metal Steels Ltd will set up a mini steel plant in Koppal district with an investment of INR 1.5 billion.
5. State owned Karnataka Power Corporation to establish two thermal power plants to produce 2500 MW of power in Bellary and Raichur. KPC would set up a 1000 MW capacity thermal unit in Raichur at an investment of INR 4160 crore and a 1500 MW plant with INR 6300 crore investments in Bellary.