Global Investors’ Meet - 2012 - India & Italy Investors’ Meet - 2012. Page 2. ... Bellary –...

Karnataka: Industrial Infrastructure Profile

Karnataka: Industrial Infrastructure

Global Investors’ Meet - 2012


Industrial infrastructure in India: Foundation for Economic GrowthIndia’s infrastructure► India's industrial production growth rate in 2010

was 7.5 percent, up from 5.2 percent in 2009.2

► Pharmaceutical, automobile and IT industriesare also sectors that have performedexceedingly well and experienced significantgrowth.5

► The textile industry is the largest industry interms of employment and is expected togenerate $85 billion by 2010 and create 12million new jobs4

► The strong level of economic growth achievedby India in recent years have fuelled thedemand for infrastructure 1

► Investment in infrastructure likely to increase to10% by the 12th Plan (2012-2017)from thecurrent 8.37%.3

► US$ 1 trillion opportunities for global investorsover the next 5 years.8

► Infrastructure sector amounts for 26.7% ofIndia’s Industrial output9

► Private sector investment in infrastructureexpected to reach 50% by 12thplan from thecurrent 34%.10

► India's WTO involvement during the last decadehas encouraged the country’s pharmaceuticalfirms to adopt a strategy of R&D based growth.6

► Apart from the manufacturing of drugs, thepharmaceutical industry offers a huge marketfor outsourcing of clinical research. 7

► 143 Operational, 582 Formally Approved , 44 In-Principal and 380 Notified SEZ at present.11

4.8 7.213.9

20.8

46

0

10

20

30

40

50

2005-06 2006-07 2007-08 2008-09 2009-10

Growth in exports from SEZ (in US$ Billion)

Source: SEZ India

CAGR 76%

Source:, PPP India, , http://www.pppinindia.com/database.php , http://www.sezindia.nic.in/writereaddata/pdf/ListofoperationalSEZs.pdf

Total No. of operational Multi Product SEZ in India

17

Total No. of operational sector specific SEZ in India

126

Total Operation SEZ in India 143

Operational SEZ in India

Gems and Jewellery

Electronics Handicrafts

IT/Hardware and Bio-informatics

Apparel and fashion accessories & Footwear

Telecom equipments/R&D services

IT/ITES Hi-tech Engineering Products

Food Processing

Building Products, FTEZ

Building Products

conventional Energy, Power

Software development

Bio-technology& Pharma

Aviation

Operational SEZ in India: key sectors

http://www.sezindia.nic.in/writereaddata/pdf/ListofoperationalSEZs.pdf

http://www.sezindia.nic.in/writereaddata/pdf/ListofoperationalSEZs.pdf


Karnataka: contributing to India’s growth storyThrust on infrastructure and sector friendly policies have given Karnatakaone of the mostrobust industrial infrastructure to support holistic growth of the state

► Strong industry focus with 26 MSME productclusters, 132 Industrialestates and 8 growthcenters. 394,850 MSME units, employing75,120 people, in 2009-10, growing at anannual rate of 9.49% since 2008-09

► Sector-specific SEZ and Industrial zonesmatching the natural resources and capability ofa region with the industry requirements.

► Mining sector registered the highest growth of37.95% followed by electricity (15.78%) andmanufacturing (8.47%). All the three sectors oforganized industry have registered a highergrowth in 2009-10 compared to 2007-08 and2008-09.

► The overall organized industrial sector ofKarnataka registered an impressive double-digitgrowth of 11.34% in 2009-10 compared to7.35% in 2007-08 and 4.72% in 2008-09. Tofacilitate balanced regional growth, stategovernment has shifted focus to new andplanned industrial infrastructure such as SEZand investment regions.

► Development of Suvarna KarnatakaDevelopment Corridor in which 25 Km on bothsides to be dedicated for development ofindustrial clusters and sector specific industrialzones. Index of Industrial production of Karnataka : 2007-08

to2009-10. Base year 1999-00

Sector Weightage 2007-08 2008-09 2009-10

Mining 41.36 224.60 241.22 332.76

Manufacturing 785.71 158.71 167.45 181.63

Electricity 172.93 146.22 146.33 169.43

General Index 1000.00 158.98 166.85 185.77

Values are per worker (in lakh Rs)

Selected economic indicators of industries

► New Infrastructure Policy 2007 forsetting the ambience for PPPpartnerships in infrastructure building.

► 105 projects worth US$ 15.2 Billioninvarious stages of implementationunder private sector partnership.

High-Growth Sector: (=/>10% growth)(i) Tobacco products;(ii) Wearing apparel; (iii) Publishing &

printing; (iv) Food products

Medium-Growth Sector: (=/>5% but <10% Growth)(i) Furniture; (ii) Motor

vehicles, trailers & semi-trailers.

Classification of Industries into Groups based on Growth (2009-10)


SEZ and SIR in Karnataka, driving Karnataka export60Special Economic Zones provide duty free enclave for driving FDI and exports.

► 20 SEZ are fully operational, 15 have been notified, 4 submitted to GoIfor notification, and 17 formally approved

US$ 3.2 Billion invested in 20 operational SEZ creating employmentfor. 125,411 people.

IT/ITeS 47Biotech 3Textiles 1Engineering & related industries 2

Food processing 1Precision engineering (auto, aerospace & industrial) 1

Pharmaceutical 1Petrochemicals & petroleumproducts 1

Airport based SEZ/ Aerospace 2

FTWZ 1

Bangalore

Mysore

Hassan

Mangalore

Udipi

BelgaumGrowth in SEZ exports (in USD Billion)

Source: Karnatakaindustry.gov.in

Special Investment Region (SIR)

► The Bangalore-BIAL ITIR is a 50 km2 (12,000acres) Investment Region that is underdevelopment 15 km North of BengaluruInternational Airport.

► Total cost is expected to be One Lakh Crorerupees ($20 Billion).

► The initiative will provide direct employment to 1.2million people and indirect employment to 2.8million.

► Development will involve a Centre-Statepartnership in conjunction with private partners.Basic infrastructure such as road, rail andtelecommunication links will be provided by theCentre.

► The State governments will provide physicalinfrastructure and utilities, includingpower, water, sewerage and effluent treatmentfacilities

0

0.5

1

1.5

2

2.5

2007-08 2008-09 2009-10

0.3

1.62.1


Suvarna Karnataka Development Corridor Programme: accelerating industrial growth

Industry Districts

Steel Bellary, Koppal, Bagalkot, Haveri, Gadag & Raichur

Cement Gulbarga, Bagalkot, Chitradurga, Belgaum and others

Food Processing

Bengaluru Rural, Kolar, Belgaum, Gadag, Koppal, Shimoga, Bagalkot, Bijapur, Davangere, Mandya and Dharwad

IT / BTMysore, Mangalore, Hubli, Dharwad, Belgaum, Shimoga, Gulbarga, Kolarand Mandya

Automobile Ramanagara, Shimoga, Dharwad and Kolar

Investment Zones For 10 Industries along SKDC

► New Industrial Policy, 2009-14 directed developmentof 5 major corridors in Karnataka, proposing to cover11 district headquarters and 20 major towns alonghighways, major roads, and rail links

► Industrial corridors provide infrastructure support inenergy, rail, road linkages, free trade zones, inlandcontainer depots, and urban infrastructure.

► Suvarna Karnataka Development Corridorprogrammeconnects most of the Tier II cities through anetwork of highways, cluster development indesignated zones.

► Under the SKDC programme, the potential areas inthe vicinity of the corridor (25 km on both sides of thecorridor) will be developed for industrialclusters, townships, satellite towns and sector specificindustrial zones.5 major industrial corridors: 1)Tumkur - Honnavar via Shimoga 2) Chitradurga – Mangalore via

Shimoga – Udipi 3) Bidar – Gulbarga – Bellary – Hiriyur 4)Chitradurga – Hospet – Koppal– Raichur 5) Chitradurga – Hospet – Bagalkot - Bijapur

Industry Districts

Readymade Garments

Bengaluru Rural, Tumkur, Kolar, Mandya, Belgaum, Bidar, Dharwadand Others

Sugar and Co. gen power

Bidar, Belgaum, Bagalkot, Shimoga and Mandya

Pharmaceutical / Bio Technology Bengaluru, Mysore and Hassan

Power Generation Raichur, Bellary, Bijapur & Chitradurga

Media & Entertainment Bengaluru Rural and Ramanagara


Industrial Parks and PPP Projects under implementation

Sub Sector

Project Name Location Sponsor department

Estimated Cost (in US$ million

Stage

BT Setting up of BT SEZ Bangalore Department of IT,BT and S&T

109 Bidding

IT Devanahalli Business park Bangalore KSIIDC 1875 Project Identification

NanoSector

Setting up of Nano Park Bangalore Department of Science & Technoldy

Bidding

Details of 3 PPP projects in Industrial Infrastructure

Sector specific industrial parks to provide conducive environment for industry

Name of the project Investment (in US$ million)

Employment potential

Information Technology Investment region (ITIR) US$ 20 Billion 4,000,000

IT Parks at Mysore, Mangalore, Gulbarga, Shimoga US$ 30 million 10000

Bangalore Biotech Park US$ 50 million 3000

Agri – Biotech park at Dharwad US$ 20 Million 1000

Marine Biotech Park in Mangalore US$ 20 Million 1000

Vivarium Animal House in Bidar US$ 20 Million 1000

Nutri-Neutraceutical Park at Mysore US$ 20 Million 1000

Phyto- Pharmaceutical Park, Mysore US$ 20 Million 1000

► Electronics City, Bangalore is one of India’s largest electronic industrial parks spread over 332 acres, housing more than 300 companies and employing more than 100,000 employees.

► Bangalore Helix – One of the biggest biotech clusters in India comprising 8 biotech incubators covering a total area of 10,000 sq ft with a total investment of US$ 20 million


Policy initiatives

•Development of Suvarna Karnataka Development Corridor with industrial clusters, townships, sector specific SEZ to an extent of 25 Km on both sides of the corridor

•Dedicated infrastructure development fundwith an initial corpus of US$ 104 million to be operated through KIADB

State Industrial Policy, 2009-14

•Single Point clearance to SEZ developers and units•A committee to monitor and review implementation of SEZ.

•Exemption from stamp duty, electricity duty & Customs/excise duties for authorized operations approved by BOA

•Exemption from state local taxes, sales tax, VAT, Entry tax, Special Entry Tax for both developers and SEZ units.

•100% Income Tax exemption on export income for SEZ units for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.

•One time capital subsidy of up to 50% of the cost incurred for setting up Common Effluent Treatment Plan

•External commercial borrowing by SEZ units upto US$ 500 million in a year without any maturity restriction through recognized channels

State policy for SEZ

•Creating special infrastructure such as focusedbiotechparks in the areas of agriculture, marine biotech and animal husbandry

Karnataka Biotech Policy

•Focusing on creation of innovation park with Government funding limited to 20% of the project cost

Information and Communication

TechnologyPolicy


Organization StructureSIR Apex Authority

Karnataka State Industrial Infrastructure Corporation (KSIIDC) (or any other such institution as proposed in Infrastructure Bill) will be the Apex Authority for major decisions.Major functions include to make regulations & such provisions for proper development, operation, regulation and management of SIRAuthority can delegate suchpowers and functionsto its Executive CommitteeCore functions- like approval and modification in development plan, town planning scheme and general development regulations shall not be delegated to any committees.

New SPV: Project Development Agency

Government may separately authorize formation of such a companyThe nodal company will do

All project development work.Immune from regular Govt. controlsDetailing of the Projects Both for projects within and outside the SIR area

Regional Development Authority (RDA)The State Government will constitute RDA for each SIR declared. The RDA will be a corporate body.The State Government is also empowered to designate any Government agency or a govt. company to act as RDA, The RDA will have Chairman, Vice Chairman, CEO and members not exceeding eleven- to be appointed by the Government of KarnatakaIt will comprise of the official and non-officials & experts as membersRDA will do the ground level planning and execution.

SPVs for Projects within RDAs

Conceptualization of anInvestment Region

SPVs for Projects within PRIDE Corridor and Suvarna Karnataka Development Corridor

Investment Opportunities► Investment in Industrial Infrastructure: Development of sector focused industrial parks

► Investment in Special Economic Zones for various sectors like IT/ITES, Chemical & Petrochemical, Aerospace, Pharmaceutical, Textile, Engineering, Biotech, Food Processing.

► Investment in Special investment Regions along the Suvarna Karnataka Development Corridor

► Bidar-Gulbarga-Bellary-Hiriyur

► Tumkur - Honnavar via Shimoga

► Chitradurga – Mangalore via Shimoga - Udupi

► Chitradurga – Hospet – Koppal – Raichur

► Chitradurga – Hospet – Bagalkot - Bijapur


Proposition Investment Potential Line Department

Development of SIRsMangalore (PCPIR) 25,000.00

PS IndustriesNorth Karnataka 25,000.00 Bangalore Region 25,000.00

Development of VADA region as NIMZ 15,000.00 Integrating ITIR and Devenahalli plan as a package

Development of Proposed Product Specific SEZs & Industrial AreasSteel Ancillary Park, Bellary (500 ac) 145.00

KIADB

Engineering Park, Chitradurga (200 ac) 46.00 Engineering Park, Tumkur (500 ac) 155.00 Integrated Industrial Township, Dharwad (1000 ac) 391.00 Defence Manufacturing Hub, Chitradurga (500 ac) 110.00 Multi Product SEZ, Bijapur (2500 ac) 666.00 Textile SEZ, Doddaballapur (300 ac) 190.00 IT SEZ, Dharwad (30 ac) 326.70 IT SEZ, Kolar (30 ac) 326.70 IT SEZ, Mysore(30 ac) 326.70 Aerospace SEZ, Bangalore (R ), (250 ac) 2,722.50 Education/ Knowledge Hub, Bijapur (150 ac) 1,633.50 Commercial Cum Office Complex Bengaluru (U), (3 ac) 32.67 Industrial Park, Bidar, (300 ac) 767.26 Industrial Park, Gulbarga, (200 ac) 511.51 Textile SEZ, Hassan (581ac) 368.60 Food Processing SEZ, Hassan (285 ac) 3,103.65 Pharma SEZ, Hassan (270 ac) 2,940.30 Financial City Phase 2 PS Industries

Services and UtilitiesCETPs in the existing and proposed Industrial Areas (a total of 90 areas do not have CETPs in KIADB estates) 1,200.00

KIADBRegional Industrial Waste treatment centers for both solid and liquid waste 3,440.00

300 MLD Desalination plant 1,500.00 Total Investment Envisaged 110,903.09

Project Propositions

Investment Potential in Rs. Cr


Secretary to Government of KarnatakaInfrastructure Development departmentRoom No 28, Vikasa SoudhaBangalore - 560 001

Ph: 91-80-22282366, 080 - 22035085Fax: 91-80-22280605E-mail ID: [email protected]

Chief Executive Officer,Karnataka Industrial Area Development Board14/3, 2nd Floore, RP Buildings, Nrupathunga RoadBangalore – 560001Ph: 080-22215383Fax: 080-22217702E-mail ID: http://www.kiadb.in/

ChairmanKarnataka State Industrial & Infrastructure Development CorporationKhanija Bhavan 49, 4th Floor, East Wing, Race Course Road, Bangalore - 560 001.Ph: +91 080 2225 8131/133 Fax: +91 80 2225 5740Web: www.ksiidc.com; E-mail: [email protected]; [email protected]

Principal Secretary to Government of KarnatakaCommerce & Industries Department# 106, 1st Floor, Vikasa Soudha, Dr. Ambedkar Veedhi,Bangalore 560 001, India.Email : [email protected]

Commissioner for Industrial Development and Director of Industries & Commerce2nd Floor, Khanija Bhavan, No.49, Race Course Road, Bangalore – 560 001www.karnataka.industry.gov.inEmail : [email protected] us at : http://www.karnatakaindustry.gov.in

Karnataka Udyog MitraManaging Director, Karnataka Udyog Mitra,3rd Floor, Khanija Bhavan (EastWing), No.49, Race Course Road,Bangalore – 560 001www.kumbangalore.comPh : 91-80-2228 2392, 2228 5659; 2238 1232, 2228 6632Fax : 91-80-2226 6063Email : [email protected] us at : www.kumbangalore.com

Contacts

mailto:[email protected]

http://www.kiadb.in/

mailto:[email protected]

http://www.karnatakaindustry.gov.in/

http://www.kumbangalore.com/

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