Unstable ministries in Karnataka since the last Assembly elections are being seen by many as a deterrant for prospective investors while putting the brakes on ongoing projects.
Talking to FE, Infosys board member, TV Mohandas Pai, said policy decisions could be taken only when an elected government was in place. Unstable governments were not healthy for the progress of industrial development, he said.
??A caretaker government cannot take any major policy decisions related to industrial investments. Uncertainty in the government might have a negative impact on investments while delaying the ongoing projects,?? Pai said.
The Congress-Janata Dal (Secular) coalition government, led by N Dharam Singh, collapsed within 20 months after JD(S) withdrew support to form an alternative coalition government with BJP under the leadership of HD Kumaraswamy in February 2006.
According to official sources, the JD(S)-BJP government was fast in taking decisions regarding clearance of industrial projects.
During June 2006 to April 2007, a high-level committee cleared 123 mega projects worth Rs 1, 52, 801 crore while SLSWC gave its nod to 1, 091 projects valued at Rs 14, 380 crore. These projects were estimated to create job opportunities for 21, 61,487 people in Karnataka, an officer with Karnataka Udhyog Mitra said.
Bangalore-based Reva Electric Car company vice-chairman, Chetan Kumar Maini, said, ??We should wait-and-watch the situation. Projects that have already take off may not be affected as investments are already through?? But he agreed that an elected government was needed to effectively attract investments to the state.