After Promising Start, Karnataka Increases GIM Investment Plans

After the Global Investors’ Summit got off to a strong start, Karnataka increased its fundraising target by Rs 2.5 lakh crore to Rs 7.5 lakh crore, according to Union Finance Minister Nirmala Sitharaman.

“When this global meeting was first being arranged, their initial expectations and goals were in the neighborhood of 5 lakh crore. Now that has increased to Rs 7.50 lakh crore,” Union Finance Minister Nirmala Sitharaman said on the opening day of the three-day event, adding that Karnataka CM Basavaraj Bommai has already approved investment proposals worth Rs 2.8 lakh crore.

On the first day of the international investor gathering Invest Karnataka 2022, the Indian Prime Minister Narendra Modi stated “India is the ideal location for foreign investors and a trustworthy participant in supply chains, especially in the wake of the Covid-19 outbreak. Inclusion, democracy, and investment in India all contribute to a better, cleaner, and safer environment on Earth.”

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MoUs Signed

“The Memorandum of Understandings that have emerged have emerged in newer areas, the sunrise areas – whether it is the hydrogen mission that the GoI announced, green ammonia, whether it is ensuring that new corridors are coming up for industries, connecting with the ports (and) newer mines,” she said.

An MOU, or memorandum of understanding, is a non-binding contract that outlines each party’s intentions to take action, complete a business transaction, or establish a new partnership.

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Sitharaman made her remarks on the first day of the event, which drew investment commitments totaling more than Rs. 5.6 lakh crore.

“The goal is to make these investments a reality. Before this week, we previously sanctioned Rs 2.8 lakh crore,” Karnataka CM Basavaraj Bommai stated. The CM urged investors to endeavor to turn these pledges into actual enterprises.

Planned Investment Announcements by Industry Giants

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The JSW and Adani groups said on the first day that they would each invest Rs 1 trillion in Karnataka as they sought to increase their influence there.
“The one trillion rupee investment made by JSW Group Chairman Sajjan Jindal’s conglomerate would be spread out over five years and is in addition to the one trillion rupees already invested in the state,” according to Jindal. The investment planned by the business would go towards industries including edible oils, renewable energy, cement, and airports. This would happen over the ensuing seven years.

Investments in Green Hydrogen & its Derivatives

The green hydrogen and derivatives industry received the lion’s share of the investments of about Rs 2.91 lakh crore out of the Rs 5.6 lakh crore signed. Acme Group, ReNew Power, and ABC Cleantech are three domestic companies that will each invest Rs 50,000 crore to build green ammonia and other derivatives manufacturing facilities in the state.

The third-largest economy in Asia is putting plans in place to achieve net zero emissions by 2070, and private investors have poured over Rs 1.27 lakh crore into the solar, wind, hydro, and hybrid energy projects. Vedanta took the lead with an investment of roughly Rs 80,000 crore.

Other Major Investments 

In the area of electronic designs and manufacturing, MoUs worth Rs 47,475 crore were also inked during the event, and firms like ISMC announced plans to invest Rs 22,900 crore in the state. The timing of this coincides with India’s efforts to lessen its dependency on foreign nations for its chip needs.

“Reducing India’s reliance on foreign gadgets is our next aim. We’ll start by producing semiconductors to cut down on the $16 billion import expenditure “said Pratik Agarwal, managing director of Sterlite Power. MoUs worth Rs 43,500 crore were signed in the infrastructure and logistics parks area, with Airtel proposing to invest roughly Rs 15,000 crore.

“By December or January, we will roll out 5G over the entire state of Karnataka. Investments totaled Rs 25,024 crore in the construction industry, while Rs 22,906 crore went to the data center, aerospace & defense, and e-mobility industries,” according to Rajan Bharti Mittal, Vice Chairman of Bharti Enterprises. (Karnataka Increases Its GIM Investment Plans)