Capital flight costs State Rs 35,000 cr

Capital flight costs State Rs 35,000 cr
Gulbarga:
The FKCCI has said investment to the tune of Rs 35,000 crore has been diverted from Karnataka in the last six months, besides the loss of one lakh employment opportunities which could have been created by new industries.

Disclosing this to reporters here on Monday FKCCI President S S Patil said the atmosphere in Karnataka is not conducive for investment as the State government is not at all responding to new industrial proposals. “The political instability, poor infrastructure facilities and the insensitive bureaucracy are main reasons for flight of industrial investment.”

Patil said many MNC IT firms and a major automobile industry had to fly to either Andhra Pradesh or Tamil Nadu. A major automobile industry has been diverted to Tamil Nadu. Patil blamed the State government for concentration of industries only in and around Bangalore.

“Bangalore is overcrowded with industries and its infrastructure is poor. Its no more an investor-friendly destination,’’ he said. He urged the government to divert industries to other parts of the State by developing basic infrastructure there. He said all the four food park proposals in Karnataka, including one at Jewargi, have been grounded due to “non-encouraging attitude” of both State and Centre.

He said there is very good scope for setting up industries outside Bangalore, particularly in north Karnataka.
By developing roads and airports, industries can be diverted to northern Karnataka, he felt.

“Every week, three to four new IT firms want to come to Bangalore. Due to inert administration and poor infrastructure in Bangalore, they have shifted to other states’’ Chamber Senior Vice-President Murali said