Karnataka clears major IT projects

BANGALORE: The Karnataka government has given clearance to several major IT projects, including by Tata Consultancy Services (TCS), which will set up four special economic zones (SEZs) across the state with an investment of Rs.11.5 billion ($247 million).

A high-level clearance committee cleared the application of TCS, India's largest IT bellwether, at a meeting here late Monday, according to the Karnataka Udyog Mitra (KUM), the single-window agency for industrial promotion in the state,

"In the IT/ITES (IT-enabled services) sector, TCS has been allowed to locate its SEZs at Devanahalli on the outskirts of Bangalore in 100 acres at Rs.5 billion; at Mysore in 50 acres at Rs.4.1 billion; Hubli-Dharwad in 50 acres at Rs.1.2 billion and Mangalore in 50 acres at Rs.1.2 billion. The four SEZ projects are expected to generate about 23,200 jobs," a KUM official told IANS.

The government committee also cleared the proposal of Shapoorji Pallonji & Co to build a hardware park at Devanahalli on 1,450 acres at an investment of Rs.57.79 billion.

An application to set up a SEZ for electronics hardware and software, including ITES by Ittina Properties Ltd at Hoskote on the outskirts of Bangalore at an investment of Rs.5.35 billion was also approved.

"Sector wise, 18 projects were approved in the IT/ITES segment, with a cumulative investment of Rs.189 billion and an employment potential of 576,000 people. In all, about 40 projects, involving an estimated investment of Rs.629 billion have been cleared by the committee, headed by Chief Minister H.D. Kumaraswamy," the official said.

The clearance for setting up SEZs in the state comes in the wake of the SEZ board at the central government level permitting 34 projects in Karnataka in the IT and non-IT sectors. Of these 19 SEZs have received formal approval, while the remaining 15 were given in-principle clearance.

"The 34 SEZs, to be located in an area of 4,496 hectares of land across the state at a combined investment of Rs.217 billion, are projected to create 568,000 jobs," the official pointed out.

Some of the major SEZ projects to be developed in Bangalore district for the knowledge sector are: Adarsh Prime Projects at a cost of Rs.58.7 billion, Bagmane Developers (Rs.156 billion), Information Technology Park (Rs.1.9 billion), San Engineering & Locomative Co (Rs.3.4 billion), Blue Hill Informatics (Rs.5.07 billion) and Karle Infra Projects (Rs.4.93 billion).

Similarly, in Mysore district, Total Environment Building Systems has been permitted to build an SEZ at an estimated cost of Rs.25.8 billion and another SEZ by Parsvanath Developers at Rs.12.4 billion.

Suzlon Infrastructure has been cleared to build a SEZ at Udupi in the coastal area at a cost of Rs.2.5 billion for high-tech engineering industries.

In the non-IT sector, Jaykaycem has been allowed to set up a cement plant at Mudhol in Bagalokot district at Rs.7.5 billion; a submerged arc welding pipes plant by JCO Gas Pipe at Narasapura in Kolar district (Rs.550 million) and an additional cement plant by ACC at Wadi in Gulbarga district (Rs.6.51 billion) and a Portland Pozzolana cement plant at Torangallu in Bellary district (Rs.2.96 billion).

In other sectors, SLR Metaliks has been cleared to set up an integrated mini steel plant in Koppal district at Rs.2.5 billion, a refinery expansion plant at Surathkal and Katipalla in Mangalore by MRPL at Rs.109 billion and a textile and apparel park at Ramanagaram in Bangalore rural district by Hinduja Investments at Rs.1.7 billion.