Karnataka clears projects worth US$27.5bn

Karnataka government has cleared 38 projects totaling investments of Rs1.38 trillion (US$27.5bn) and expects to finalise the mega proposals from global steel makers ArcelorMittal and South Korea's POSCO. Karnataka Chief Minister B.S. Yeddyurappa said these projects collectively have the potential to generate employment for 92,000 people in the state. "Nearly 60% of these investments would be in north Karnataka," said Yeddyurappa after a meeting with the London-based chairman of Arcelor Mittal, L.N. Mittal. Reports state that ArcelorMittal has proposed to invest Rs300bn (US$6bn) in Karnataka while POSCO plans to pump Rs320bn (US$6.4bn), both entailing a capacity of six million tonnes a year. Yeddyurappa has invited steel tycoon Mittal to become the chief guest at the inaugural global investors' meet June 3-4 in Bangalore. Mittal firm has also proposed a 150 MW captive power plant.

The other investment proposals spelt out by the state government include: Rajashree Cement's Rs30bn cement plant in Gulbarga; Reliance Industries' plan for a gas pipeline between Chennai and Bangalore; GAIL India's gas pipeline from Dabhol to Belgaum and Bangalore; Shell's research centre with an investment of Rs13.76bn; Zuari's Rs45.65bn plant at Belgaum and cement titan Lafarge's Rs15bn investment.