The role of the FKCCI is to reduce the gap between the entrepreneur and the govt. For instance we play a big role in policy making between the govt and the industry and govt and trader. The govt is also pro active in two issues especially when working with the chamber. They always make sure that they work with us regarding the change in tax structure and regarding policies. So we play a very active role when any new policy is made for example 2014-19 state industrial policy was reckoned as one of the best industrial policies in the country/
The reason is very clear – they have made sure that every region in the state of Karnataka is taken into consideration. For example, a Tier Two or Tier Three city looking at how investments can be moved outside Bengaluru. The city is getting absolutely congested and chocked. You should not forget that Bengaluru also gives 60 per cent of the GDP of the state’s revenue. You cannot neglect this city. So we need to make sure that Bengaluru’s infrastructure keeps pace with the growth- this is an eye opener with Invest Karnataka because of the existing industry’s concern is that they themselves are finding it very difficult wih the existing infrastructure, and hence how do they expect the new investors to come into the city.
For which the Govt has now woken up and pro active measures are being put in place with making sure that the outer Ring Road of 65 kms is one of the projects, the Metro Phase 2 and Phase 3 –phase 1 is just getting over due to some serious technical problems. Phase 2 and Phase 3 should be faster. When these 3 phases of metro get completed by 2020, the connectivity will be much more to the advantage. Nearly 1.2 lakh people who are employed in the IT sector, who travel by car and the govt buses so all these people will start using the metro once the connectivity is available.
Aerospace is going to be the next sunrise industry. In the city of Bengaluru and the state of Karnataka. We are already the capital of aerospace components having so many bug PSU’s here. I was the part of the delegation which went to Toulouse to the Airbus factory. I was pleasantly surprised and very proud that their focus of expansion for getting components made or importing things will be from the city of Bengaluru. They believe it is only city in the world which has the ecosystem to take it forward and from the 500 crore bracket they will make it to 2000 crore of imports.
Another important thing with Airbus is now they have tied up with the Indian Institure of Science and the Indian Insitute of Management, where both these places they will have their technical knowhow. For example an MBA graduation course will have a course on storekeeping or how to manage the factory. All this will play a big role. So Airbus is here and in all probability Boeing will make it to Bengaluru. The govt of Karnataka has allotted 3000 acres of land just besides the airport has been earmarked as the High Economic Zone as the Aerospace and IT related park.
The land is acquired by the Karnataka Investment Development Board (KIDB). Another important thing is you have land in the kitty of the govt so what happens people who want to start right away the land is available—and that is a big advantage. And none of this verticles which the govt is trying to focus now need huge lands. They need lands not of big quantity. Previously, they needed huge lands for steel, cement around 1000 acres . Further the new procurement policy in defence of govt of India policy in which you can procure 30 per cent will again give boost to all those things.
Also the Govt of India’s next helicopter project, with the HAL is also in Karnataka. This is located near Tumkur, about 70 kms from the city of Bengaluru. And we are also looking into a lot of renewal energy projects in the power sector.
The next project on 12000 hectares of land of 500 megawatts is again in Tumkur district in a place called Pawagada about 80kms from Bengaluru. This is a pet project of the PM on enviornemnt and hopefully he may inaugurate it.
There might be an issue of power in the last three four months because severe water shortage because of rain and we might be getting another 3000 megawatts. Fifty per cent of the power the state gets is out of hydel. The situation has improved after the rains came back. By June 2016, we will be able to garner another 3000 megawatts of power. We are going to get 2021 megawatts of nucleur power by mid Feb which will coming from Tirunenvelli in Tamil Nadu. Anoter important thing is that we will getting another 8000 megawatts from Yaramaras Thermal pland and another 700mega watts from Bellary Power station. These two will add up to whatever shortage people talk about.
Karntaka has a 20 per cent edge among the neighbouring states. Because of the perfect ecosystem to start off any project, we have very strong skilled labour available, which is again called the skill capital of the country. Because of its inheritant strength of more than 200 engineering colleges, 175 to 200 plus ITI’s second only to UP.
Another important thing on the road trip one thing people pointed out was the congestion the traffic and I am sure the govt is making all efforts. Nevertheless everyone said Bengaluru will be the place to watch out. I am proud to say that not only for the country but also the world to watch. We are one a pace track and I am sure the govt will go all out to ensure that the traveling time will be reduced and working inputs will be increased.