Industrial Infrastructure
Industrial Infrastructure
Industrial Infrastructure
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Global Investors’ Meet - 2012<br />
Karnataka: <strong>Industrial</strong> <strong>Infrastructure</strong><br />
Karnataka: <strong>Industrial</strong> <strong>Infrastructure</strong> Profile<br />
Page 1
<strong>Industrial</strong> infrastructure in India:<br />
Foundation for Economic Growth<br />
India’s infrastructure<br />
► India's industrial production growth rate in 2010<br />
was 7.5 percent, up from 5.2 percent in 2009.2<br />
►<br />
►<br />
Pharmaceutical, automobile and IT industries<br />
are also sectors that have performed<br />
exceedingly well and experienced significant<br />
growth.5<br />
The textile industry is the largest industry in<br />
terms of employment and is expected to<br />
generate $85 billion by 2010 and create 12<br />
million new jobs4<br />
Growth in exports from SEZ (in US$ Billion)<br />
50<br />
46<br />
40<br />
CAGR 76%<br />
30<br />
20.8<br />
20<br />
13.9<br />
10 4.8<br />
7.2<br />
0<br />
2005-06 2006-07 2007-08 2008-09 2009-10<br />
Source: SEZ India<br />
►<br />
►<br />
Thestronglevelofeconomicgrowthachieved<br />
by India in recent years have fuelled the<br />
demand for infrastructure 1<br />
Investment in infrastructure likely to increase to<br />
10% by the 12 th Plan (2012-2017)from the<br />
current 8.37%.3<br />
Operational SEZ in India<br />
Total No. of operational Multi<br />
Product SEZ in India<br />
Total No. of operational sector<br />
specific SEZ in India<br />
17<br />
126<br />
Total Operation SEZ in India 143<br />
►<br />
US$ 1 trillion opportunities for global investors<br />
over the next 5 years.8<br />
► <strong>Infrastructure</strong> sector amounts for 26.7% of<br />
India’s <strong>Industrial</strong> output9<br />
► Private sector investment in infrastructure<br />
expected to reach 50% by 12 th plan from the<br />
current 34%.10<br />
►<br />
India's WTO involvement during the last decade<br />
has encouraged the country’s pharmaceutical<br />
firms to adopt a strategy of R&D based growth.<br />
6<br />
Gems and<br />
Jewellery<br />
IT/Hardware<br />
and<br />
Bio-informatics<br />
IT/ITES<br />
Operational SEZ in India: key sectors<br />
Electronics<br />
Apparel and<br />
fashion<br />
accessories &<br />
Footwear<br />
Hi-tech<br />
Engineering<br />
Products<br />
Handicrafts<br />
Telecom<br />
equipments/R&D<br />
services<br />
Food Processing<br />
►<br />
►<br />
Apart from the manufacturing of drugs, the<br />
pharmaceutical industry offers a huge market<br />
for outsourcing of clinical research. 7<br />
143 Operational, 582 Formally Approved , 44 In-<br />
Principal and 380 Notified SEZ at present.11<br />
Building<br />
Products,<br />
FTEZ<br />
Software<br />
development<br />
Building<br />
Products<br />
Bio-technology<br />
& Pharma<br />
conventional<br />
Energy, Power<br />
Aviation<br />
Source:, PPP India, , http://www.pppinindia.com/database.php ,<br />
http://www.sezindia.nic.in/writereaddata/pdf/ListofoperationalSEZs.p<br />
df<br />
Karnataka: <strong>Industrial</strong> <strong>Infrastructure</strong> Profile<br />
Page 2
Karnataka: contributing to India’s growth<br />
story<br />
Thrust on infrastructure and sector friendly policies have given Karnatakaone of the most<br />
robust industrial infrastructure to support holistic growth of the state<br />
► Strong industry focus with 26 MSME product<br />
clusters, 132 <strong>Industrial</strong>estates and 8 growth<br />
centers. 394,850 MSME units, employing<br />
75,120 people, in 2009-10, growing at an<br />
annual rate of 9.49% since 2008-09<br />
Selected economic indicators of industries<br />
► Sector-specific SEZ and <strong>Industrial</strong> zones<br />
matching the natural resources and capability of<br />
a region with the industry requirements.<br />
► Mining sector registered the highest growth of<br />
37.95% followed by electricity (15.78%) and<br />
manufacturing (8.47%). All the three sectors of<br />
organized industry have registered a higher<br />
growth in 2009-10 compared to 2007-08 and<br />
2008-09.<br />
► The overall organized industrial sector of<br />
Karnataka registered an impressive double-digit<br />
growth of 11.34% in 2009-10 compared to<br />
7.35% in 2007-08 and 4.72% in 2008-09. To<br />
facilitate balanced regional growth, state<br />
government has shifted focus to new and<br />
planned industrial infrastructure such as SEZ<br />
and investment regions.<br />
► Development of Suvarna Karnataka<br />
Development Corridor in which 25 Km on both<br />
sides to be dedicated for development of<br />
industrial clusters and sector specific industrial<br />
High-Growth Sector:<br />
(=/>10% growth)<br />
(i) Tobacco products;<br />
(ii) Wearing apparel;<br />
(iii) Publishing &<br />
printing;<br />
(iv) Food products<br />
Values are per worker (in lakh Rs)<br />
Classification of Industries into Groups based<br />
on Growth (2009-10)<br />
Medium-Growth<br />
Sector: (=/>5% but<br />
SEZ and SIR in Karnataka, driving<br />
Karnataka export<br />
60Special Economic Zones provide duty free enclave for driving FDI and exports.<br />
► 20 SEZ are fully operational, 15 have been notified, 4 submitted to GoI<br />
for notification, and 17 formally approved<br />
• US$ 3.2 Billion invested in 20 operational SEZ creating employment<br />
for. 125,411 people.<br />
Growth in SEZ exports (in USD Billion)<br />
Belgaum<br />
2.5<br />
2<br />
1.6<br />
2.1<br />
1.5<br />
1<br />
0.5<br />
0.3<br />
0<br />
2007-08 2008-09 2009-10<br />
Udipi<br />
Hassan<br />
Bangalore<br />
Source: Karnatakaindustry.gov.in<br />
Special Investment Region (SIR)<br />
► The Bangalore-BIAL ITIR is a 50 km 2 (12,000<br />
acres) Investment Region that is under<br />
development 15 km North of Bengaluru<br />
International Airport.<br />
►<br />
Total cost is expected to be One Lakh Crore<br />
rupees ($20 Billion).<br />
► The initiative will provide direct employment to 1.2<br />
million people and indirect employment to 2.8<br />
million.<br />
► Development will involve a Centre-State<br />
partnership in conjunction with private partners.<br />
Basic infrastructure such as road, rail and<br />
telecommunication links will be provided by the<br />
Centre.<br />
Mangalore<br />
Mysore<br />
IT/ITeS 47<br />
Biotech 3<br />
Textiles 1<br />
Engineering & related<br />
industries<br />
2<br />
Food processing 1<br />
Precision engineering (auto,<br />
aerospace & industrial)<br />
1<br />
Pharmaceutical 1<br />
Petrochemicals & petroleum<br />
products<br />
1<br />
Airport based SEZ/ Aerospace 2<br />
FTWZ 1<br />
► The State governments will provide physical<br />
infrastructure and utilities, including<br />
power, water, sewerage and effluent treatment<br />
facilities<br />
Karnataka: <strong>Industrial</strong> <strong>Infrastructure</strong> Profile<br />
Page 4
Suvarna Karnataka Development Corridor<br />
Programme: accelerating industrial growth<br />
► New <strong>Industrial</strong> Policy, 2009-14 directed development<br />
of 5 major corridors in Karnataka, proposing to cover<br />
11 district headquarters and 20 major towns along<br />
highways, major roads, and rail links<br />
► <strong>Industrial</strong> corridors provide infrastructure support in<br />
energy, rail, road linkages, free trade zones, inland<br />
container depots, and urban infrastructure.<br />
► Suvarna Karnataka Development Corridor<br />
programmeconnects most of the Tier II cities through a<br />
network of highways, cluster development in<br />
designated zones.<br />
► Under the SKDC programme, the potential areas in<br />
the vicinity of the corridor (25 km on both sides of the<br />
corridor) will be developed for industrial<br />
clusters, townships, satellite towns and sector specific<br />
industrial 5 major industrial zones. corridors: 1)Tumkur - Honnavar via Shimoga 2) Chitradurga – Mangalore via<br />
Shimoga – Udipi 3) Bidar – Gulbarga – Bellary – Hiriyur 4)Chitradurga – Hospet – Koppal– Raichur 5)<br />
Chitradurga – Hospet – Bagalkot - Bijapur<br />
Investment Zones For 10 Industries along SKDC<br />
Industry<br />
Districts<br />
Industry<br />
Districts<br />
Steel<br />
Cement<br />
Food<br />
Processing<br />
Bellary, Koppal, Bagalkot, Haveri,<br />
Gadag & Raichur<br />
Gulbarga, Bagalkot, Chitradurga,<br />
Belgaum and others<br />
Bengaluru Rural, Kolar, Belgaum,<br />
Gadag, Koppal, Shimoga, Bagalkot,<br />
Bijapur, Davangere, Mandya and<br />
Dharwad<br />
Readymade<br />
Garments<br />
Sugar and Co. gen<br />
power<br />
Pharmaceutical /<br />
Bio Technology<br />
Bengaluru Rural, Tumkur, Kolar,<br />
Mandya, Belgaum, Bidar, Dharwad<br />
and Others<br />
Bidar, Belgaum, Bagalkot,<br />
Shimoga and Mandya<br />
Bengaluru, Mysore and Hassan<br />
IT / BT<br />
Mysore, Mangalore, Hubli, Dharwad,<br />
Belgaum, Shimoga, Gulbarga, Kolar<br />
and Mandya<br />
Power Generation<br />
Raichur, Bellary, Bijapur &<br />
Chitradurga<br />
Automobile<br />
Ramanagara, Shimoga, Dharwad and<br />
Kolar<br />
Media &<br />
Entertainment<br />
Bengaluru Rural and Ramanagara<br />
Karnataka: <strong>Industrial</strong> <strong>Infrastructure</strong> Profile<br />
Page 5
<strong>Industrial</strong> Parks and PPP Projects under<br />
implementation<br />
Sector specific industrial parks to provide conducive environment for industry<br />
Name of the project<br />
Investment (in US$<br />
million)<br />
Employment potential<br />
Information Technology Investment region (ITIR) US$ 20 Billion 4,000,000<br />
IT Parks at Mysore, Mangalore, Gulbarga, Shimoga US$ 30 million 10000<br />
Bangalore Biotech Park US$ 50 million 3000<br />
Agri – Biotech park at Dharwad US$ 20 Million 1000<br />
Marine Biotech Park in Mangalore US$ 20 Million 1000<br />
Vivarium Animal House in Bidar US$ 20 Million 1000<br />
Nutri-Neutraceutical Park at Mysore US$ 20 Million 1000<br />
Phyto- Pharmaceutical Park, Mysore US$ 20 Million 1000<br />
► Electronics City, Bangalore is one of India’s largest electronic industrial parks spread over 332<br />
acres, housing more than 300 companies and employing more than 100,000 employees.<br />
►<br />
Bangalore Helix – One of the biggest biotech clusters in India comprising 8 biotech incubators<br />
covering a total area of 10,000 sq ft with a total investment of US$ 20 million<br />
Details of 3 PPP projects in <strong>Industrial</strong> <strong>Infrastructure</strong><br />
Sub<br />
Sector<br />
Project Name Location Sponsor<br />
department<br />
Estimated<br />
Cost (in US$<br />
million<br />
Stage<br />
BT Setting up of BT SEZ Bangalore Department<br />
of IT,BT and<br />
S&T<br />
109 Bidding<br />
IT Devanahalli Business park Bangalore KSIIDC 1875 Project<br />
Identification<br />
Nano<br />
Sector<br />
Setting up of Nano Park Bangalore Department<br />
of Science &<br />
Technoldy<br />
Bidding<br />
Karnataka: <strong>Industrial</strong> <strong>Infrastructure</strong> Profile<br />
Page 6
Policy initiatives<br />
State <strong>Industrial</strong> Policy, 2009-<br />
14<br />
•Development of Suvarna Karnataka Development<br />
Corridor with industrial clusters, townships, sector<br />
specific SEZ to an extent of 25 Km on both sides of<br />
the corridor<br />
•Dedicated infrastructure development fundwith an<br />
initial corpus of US$ 104 million to be operated<br />
through KIADB<br />
State policy for SEZ<br />
•Single Point clearance to SEZ developers and units<br />
•A committee to monitor and review implementation<br />
of SEZ.<br />
•Exemption from stamp duty, electricity duty &<br />
Customs/excise duties for authorized operations<br />
approved by BOA<br />
•Exemption from state local taxes, sales<br />
tax, VAT, Entry tax, Special Entry Tax for both<br />
developers and SEZ units.<br />
•100% Income Tax exemption on export income for<br />
SEZ units for first 5 years, 50% for next 5 years<br />
thereafter and 50% of the ploughed back export<br />
profit for next 5 years.<br />
•One time capital subsidy of up to 50% of the cost<br />
incurred for setting up Common Effluent Treatment<br />
Plan<br />
•External commercial borrowing by SEZ units upto<br />
US$ 500 million in a year without any maturity<br />
restriction through recognized channels<br />
Karnataka Biotech Policy<br />
•Creating special infrastructure such as focusedbiotech<br />
parks in the areas of agriculture, marine biotech and<br />
animal husbandry<br />
Information and<br />
Communication<br />
TechnologyPolicy<br />
•Focusing on creation of innovation park with<br />
Government funding limited to 20% of the project cost<br />
Karnataka: <strong>Industrial</strong> <strong>Infrastructure</strong> Profile<br />
Page 7
Conceptualization of an<br />
Investment Region<br />
Organization Structure<br />
SIR Apex Authority<br />
• Karnataka State <strong>Industrial</strong> <strong>Infrastructure</strong> Corporation<br />
(KSIIDC) (or any other such institution as proposed in<br />
<strong>Infrastructure</strong> Bill) will be the Apex Authority for major<br />
decisions.<br />
• Major functions include to make regulations & such<br />
provisions for proper<br />
development, operation, regulation and management<br />
of SIR<br />
• Authority can delegate suchpowers and functionsto its<br />
Executive Committee<br />
• Core functions- like approval and modification in<br />
development plan, town planning scheme and general<br />
development regulations shall not be delegated to any<br />
committees.<br />
New SPV: Project Development<br />
Agency<br />
• Government may separately<br />
authorize formation of such a<br />
company<br />
• The nodal company will do<br />
• All project development work.<br />
• Immune from regular Govt.<br />
controls<br />
• Detailing of the Projects<br />
• Both for projects within and<br />
outside the SIR area<br />
Regional Development Authority (RDA)<br />
• The State Government will constitute RDA for each SIR declared.<br />
• The RDA will be a corporate body.<br />
• The State Government is also empowered to designate any Government agency or a govt.<br />
company to act as RDA,<br />
• The RDA will have Chairman, Vice Chairman, CEO and members not exceeding eleven- to be<br />
appointed by the Government of Karnataka<br />
• It will comprise of the official and non-officials & experts as members<br />
• RDA will do the ground level planning and execution.<br />
SPVs for Projects within RDAs<br />
SPVs for Projects within PRIDE Corridor and<br />
Suvarna Karnataka Development Corridor<br />
Investment Opportunities<br />
► Investment in <strong>Industrial</strong> <strong>Infrastructure</strong>: Development of sector focused industrial parks<br />
►<br />
►<br />
Investment in Special Economic Zones for various sectors like IT/ITES, Chemical &<br />
Petrochemical, Aerospace, Pharmaceutical, Textile, Engineering, Biotech, Food Processing.<br />
Investment in Special investment Regions along the Suvarna Karnataka Development Corridor<br />
► Bidar-Gulbarga-Bellary-Hiriyur<br />
► Tumkur - Honnavar via Shimoga<br />
► Chitradurga – Hospet – Koppal – Raichur<br />
► Chitradurga – Hospet – Bagalkot - Bijapur<br />
►<br />
Chitradurga – Mangalore via Shimoga - Udupi<br />
Karnataka: <strong>Industrial</strong> <strong>Infrastructure</strong> Profile<br />
Page 8
Project Propositions<br />
Proposition<br />
Investment<br />
Potential<br />
Line Department<br />
Development of SIRs<br />
Mangalore (PCPIR) 25,000.00<br />
North Karnataka 25,000.00<br />
Bangalore Region 25,000.00 PS Industries<br />
Development of VADA region as NIMZ 15,000.00<br />
Integrating ITIR and Devenahalli plan as a package<br />
Development of Proposed Product Specific SEZs & <strong>Industrial</strong> Areas<br />
Steel Ancillary Park, Bellary (500 ac) 145.00<br />
Engineering Park, Chitradurga (200 ac) 46.00<br />
Engineering Park, Tumkur (500 ac) 155.00<br />
Integrated <strong>Industrial</strong> Township, Dharwad (1000 ac) 391.00<br />
Defence Manufacturing Hub, Chitradurga (500 ac) 110.00<br />
Multi Product SEZ, Bijapur (2500 ac) 666.00<br />
Textile SEZ, Doddaballapur (300 ac) 190.00<br />
IT SEZ, Dharwad (30 ac) 326.70<br />
IT SEZ, Kolar (30 ac) 326.70<br />
KIADB<br />
IT SEZ, Mysore(30 ac) 326.70<br />
Aerospace SEZ, Bangalore (R ), (250 ac) 2,722.50<br />
Education/ Knowledge Hub, Bijapur (150 ac) 1,633.50<br />
Commercial Cum Office Complex Bengaluru (U), (3 ac) 32.67<br />
<strong>Industrial</strong> Park, Bidar, (300 ac) 767.26<br />
<strong>Industrial</strong> Park, Gulbarga, (200 ac) 511.51<br />
Textile SEZ, Hassan (581ac) 368.60<br />
Food Processing SEZ, Hassan (285 ac) 3,103.65<br />
Pharma SEZ, Hassan (270 ac) 2,940.30<br />
Financial City Phase 2<br />
PS Industries<br />
Services and Utilities<br />
CETPs in the existing and proposed <strong>Industrial</strong> Areas (a total of<br />
90 areas do not have CETPs in KIADB estates)<br />
Regional <strong>Industrial</strong> Waste treatment centers for both solid and<br />
liquid waste<br />
1,200.00<br />
KIADB<br />
3,440.00<br />
300 MLD Desalination plant 1,500.00<br />
Total Investment Envisaged 110,903.09<br />
Investment Potential in Rs. Cr<br />
Karnataka: <strong>Industrial</strong> <strong>Infrastructure</strong> Profile<br />
Page 9
Contacts<br />
Secretary to Government of Karnataka<br />
<strong>Infrastructure</strong> Development department<br />
Room No 28, Vikasa Soudha<br />
Bangalore - 560 001<br />
Ph: 91-80-22282366, 080 - 22035085<br />
Fax: 91-80-22280605<br />
E-mail ID: prs-infra@karnataka.gov.in<br />
Chief Executive Officer,<br />
Karnataka <strong>Industrial</strong> Area Development Board<br />
14/3, 2 nd Floore, RP Buildings, Nrupathunga Road<br />
Bangalore – 560001<br />
Ph: 080-22215383<br />
Fax: 080-22217702<br />
E-mail ID: http://www.kiadb.in/<br />
Chairman<br />
Karnataka State <strong>Industrial</strong> & <strong>Infrastructure</strong> Development Corporation<br />
Khanija Bhavan 49, 4th Floor, East Wing,<br />
Race Course Road, Bangalore - 560 001.<br />
Ph: +91 080 2225 8131/133 Fax: +91 80 2225 5740<br />
Web: www.ksiidc.com;<br />
E-mail: ksiidc@airtelmail.in; ksiidcit@gmail.com<br />
Commissioner for <strong>Industrial</strong> Development and<br />
Director of Industries & Commerce<br />
2nd Floor, Khanija Bhavan, No.49, Race Course Road,<br />
Bangalore – 560 001<br />
www.karnataka.industry.gov.in<br />
Email : commissioner@karnatakaindustry.gov.in<br />
Visit us at : http://www.karnatakaindustry.gov.in<br />
Principal Secretary to Government of Karnataka<br />
Commerce & Industries Department<br />
# 106, 1st Floor, Vikasa Soudha, Dr. Ambedkar Veedhi,<br />
Bangalore 560 001, India.<br />
Email : prs_ci@karnataka.gov.in<br />
Karnataka Udyog Mitra<br />
Managing Director, Karnataka Udyog Mitra,<br />
3rd Floor, Khanija Bhavan (EastWing), No.49,<br />
Race Course Road,Bangalore – 560 001<br />
www.kumbangalore.com<br />
Ph : 91-80-2228 2392, 2228 5659;<br />
2238 1232, 2228 6632<br />
Fax : 91-80-2226 6063<br />
Email : md@kumbangalore.com<br />
Visit us at : www.kumbangalore.com<br />
Karnataka: <strong>Industrial</strong> <strong>Infrastructure</strong> Profile<br />
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