Investors promise Rs 7.6 lakh crore

Mangaloretoday/DHN

Bangalore, June 8, 2012: The second edition of Global Investors Meet (GIM) 2012 witnessed a record investment proposals of Rs 7.6 lakh crore, with 39.6 per cent flowing into the energy sector alone.

In all, as many as 730 Memorandums of Understanding (MoUs) were signed during the two-day investment meet with a potential to offer 15 lakh jobs.

Revealing the figures at the valedictory address on Friday, Chief Minister D V Sadananda Gowda said all 30 districts have been covered under the investment basket. The investment proposals made in GIM-2012 is double to what was achieved during the last meet wherein 389 MoUs were signed with companies seeking to invest Rs 3.82 lakh crore.

The energy sector bagged the lion’s share of the investment proposals from Hyderabad-based GVK Energy (Rs 15,000 crore for merchant power), Udupi Power Corporation (Rs 6,930 crore for expansion of its plants), among others. In all, the government also signed MoUs for setting up of 18,000 MW of power projects.

Of the total investment proposals signed by the government, 34 proposals are above an investment of Rs 5,000 crore. These proposals combined add up to Rs 3,36,555 crore investment.

The single largest investment proposal is from National Mineral Development Corporation (NMDC), which has shown interest to invest Rs 25,000 crore to set up a steel plant. Tata Metaliks is the next big investor, which will be investing Rs 20,000 crore to set up its steel plant in Haveri.

The company, which had proposed to invest Rs 15,000 crore to set up a three milliion tonne per annum (MTPA) steel plant, has scaled up its proposal to 6 MTPA at a combined investment of Rs 35,000 crore.

Industries Minister Murgesh Nirani said the investment in the steel sector has come as a surprise, considering the ban on mining iron ore in three districts by the Supreme Court.

He said none of the steel companies, which have signed MoUs at the meet, would depend on the allotment of captive iron ore mining leases to source the key raw material, but will instead source it from the open market.

This year, in addition to the Rs 7.6 lakh crore investment proposals, Rs 1.68 lakh crore
from 324 companies has been received as “registration of interest for the infrastructure” sector.

In a fillip to the Micro Small, Medium Entreprises (MSME), as many as 6,800 entreprenuers have come forward to invest Rs 35,000 crore in the sector, the chief minister said.

Gowda said the implementation of the proposals received would be reviewed every month by a high-level committee by the chief secretary.

Top 15 investors

* NMDC           25,000
* Tata Steel Ltd.        20,000
* Composite Global Energy Ltd        20,000
* Marib Infrastructure India Pvt. Ltd.        18,400
* BMM Ispat Ltd.        16,230
* GVK Energy Ltd.        15,000
* Suzlon        15,000
* B R Shetty Group        15,000
* Kalyani Steels Ltd.        12,000
* Surana Power Ltd.        11,880
* GVK Energy Ltd.        10,000
* Embassy Property development Ltd.        10,000
* Asia Pacific Industries Ltd.        9,800
* Mytrah Energy (India) Ltd.        9,762
* Rajesh Exports Ltd.        9,500