Tata Steel to set up R30k-cr plant in Ktaka

Written by fe Bureau | Bangalore | Updated: Jun 8 2012, 07:17am hrs
2-day GIM targets investment of R6L cr in key sectors like energy & infrastructure

Tata Steel on Thursday announced plans to set up a R30,000 crore steel plant in Karnataka at the government-sponsored Global Investors Meet (GIM) 2012.

The six million tonne per annum capacity plant would come up up Haveri district, Tata steel vice-chairman B Muthuraman said at the inaugural GIM function.

Earlier, the Global Investors Meet (GIM) 2012, aimed at attracting investors to the state, kicked off on Thursday with the chiefs of some of the countrys top industrial houses announcing follow-on investments in the state while MoUs were inked for several new opportunities. The second edition of the two-day event is targetting investments of over R6 lakh crore in key sectors such as energy and infrastructure.

The industry leaders said they saw potential in the state despite the concerns over political instability. While the GVK Group signed MoUs to develop merchant power plants at an investment of R29,000 crore, Suzlon Energy signed an expression of interest to develop 2,500 MW of new wind power capacity at an investment of R20,000 crore. Jindal Steel announced a R6,090 crore investment in its steel and cement plants.

We now seek to replicate our success in the services sector to the manufacturing sector, said Karnataka chief minister DV Sadananda Gowda, adding that the state plans to increase its expenditure on infrastructure from the current 3.2% of the gross state domestic product to nearly9% during the 12th five year plan. The industry captains at the event included Infosys chairman Emeritus NR Narayana Murthy, Aditya Birla Group chairman and managing director Kumar Mangalam Birla, Tata Steel vice-chairman B Muthuraman, Larsen & Toubro CEOK Venkataramanan, Future Group chairman Kishore Biyani, GE India president John Flannery and GVK Group chairman GVK Reddy among others. Officials and trade delegations from several countries like Japan and Germany also participated.

Today, when investor confidence is low, Karnataka is a state ahead of its peers. And entrepreneurs like us prefer to invest and stay invested because of its progressive policies and efficient bureaucracy, said Kumar Mangalam Birla. Until now we have invested R6,000 crore in our operations in Karnataka. Going forward we have earmarked an investment in excess R7,000 crore, he said. This would include setting up a 4 million tonne per annum cement plant at a cost of R2,750 crore in the next two years. Birla said the groups cement business itself involve a capex of R5,750 crore while financial services and telecom businesses would also see growth. The Tata group too is looking to expand its presence in the state. Many of our companies are in expansion mode, said B Muthuram, specifically announcing a R30,000 crore investment into a 6 million tonne per year steel plant at Haveri.

While GIM was a proactive approach, job creation continues to be a big challenge, said Narayana Murthy. We need to diversify information technology and need to go beyond Bangalore. Despite the immense potentials, Karnataka still has a long way to go to become a thriving hub for large scale investments. At this point of time, building investor confidence should be given priority and the government plays a major role in creating that confidence, he said.