Escalating Land Costs in Karnataka Hinder Industrial Investments: Union Minister
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Synopsis
Union Minister Shobha Karandlaje highlights the challenge posed by rising land prices in Karnataka, which complicates industrial investments and land acquisition for businesses. She urges the state to address these issues while assuring support from the Central government for industrial growth.
Key Takeaways
- Rising land prices in Karnataka are hindering industrial investments.
- Union Minister assures support from the Central government.
- Karnataka has secured Rs 820 crore in investments from the UAE.
- MSMEs contribute significantly to the country's GDP and employment.
- Focus on both industrial and agricultural development is essential.
Bengaluru, Feb 14 (NationPress) Union Minister for Labour and Employment and Minister for Micro, Small, and Medium Enterprises (MSMEs), Shobha Karandlaje, has stated that the increasing land prices in Karnataka pose a significant challenge for industrial investments, making it arduous for businesses to secure land for their operations.
She called on the state to address land-related issues and confirmed full support from the Central government.
Speaking at the "SME Connect Awards" during the Global Investors' Meet (GIM) Invest Karnataka 2025, the Union Minister remarked that entrepreneurs have expressed concerns that land acquisition expenses are frequently higher than the actual investment needed for their projects.
Minister Karandlaje urged the state government to tackle these problems to foster industrial development.
She assured complete backing from the Central government for industrial growth via a cluster model, contingent upon the state addressing the land-related challenges.
Minister Karandlaje pointed out that Karnataka has attracted investments totaling Rs 820 crore from the UAE, which includes Saudi Arabia, Doha, and Dubai.
Moreover, the KLE Society's Shivashakti Sugars Factory is set to receive a Rs 1,000-crore investment, while Rs 250 crore has been funneled into Inandar Sugars, she noted.
"MSMEs play a crucial role in the nation's GDP, contributing nearly 30 percent and providing employment to over 25 crore individuals. Over the last decade, Rs 27.5 lakh crore in loans have been allocated to seven lakh MSMEs across India," emphasized the Union Minister.
She acknowledged that the MSME policy has been revised, introducing new classifications.
She mentioned that the turnover threshold for micro enterprises has been elevated to Rs 10 crore, for small enterprises to Rs 100 crore, and for medium enterprises to Rs 500 crore.
Minister Karandlaje stressed the importance of considering both agricultural and industrial growth in Karnataka.
The region holds substantial potential in food processing, especially for ready-to-eat and ready-to-cook food products, she indicated.
She observed that foreign markets are increasingly in need of digital technologies and skilled labor from Karnataka, urging the government to focus on equipping the youth with essential skills to meet these global demands.
During the event, she presented the "SME Connect Awards" to over 30 successful MSMEs in the state.
Karnataka's Deputy Chief Minister D.K. Shivakumar underlined the necessity for additional water resources to support industries in Bengaluru.
He assured that an extra 6 tmc of water will be sourced from the Cauvery River to satisfy demand.
Shivakumar also emphasized that the state is working to alleviate the city's traffic congestion challenges.
He encouraged entrepreneurs to actively engage in the government's 'Beyond Bengaluru' initiative, which promotes industrial development outside the city.
Karnataka Governor Thaawar Chand Gehlot, along with Ministers M.B. Patil, Ramalinga Reddy, and N. Chaluvaraya Swamy, were also present at the event.
