Why would anybody want to invest in Karnataka, Mr CM?
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Written By murali772 - 31 December, 2014
Bangalore
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Chief Minister Siddaramaiah will soon go on a business tour to the United States (US) to showcase Karnataka as a preferred destination for investment soon, IT/ BT Minister S R Patil said on Wednesday. - - - - Maintaining that Karnataka offers the best atmosphere for investment in various sectors including mining, education, science and technology, aerospace and automobile, he said, “The state government would offer special incentives to those investors who would choose Tier II cities,” he said.
For the full text of the report in the New Indian Express, click
here.
Actually, how serious can the CM be, when he projects Karnataka as an investment destination? Let's see how the state fares in three basic infrastructure areas, to begin with.
1) Power: in June 2010, when Karnataka organised the GIM (Global Investment Meet), I had written about the dismal power scenario in the state (check
here). The situation has only worsened since then. So, those wanting to set up any industry/ business here, also need to plan for setting up their own power generating plants, coal/ fuel linkages thereof, etc.
What's even more frightening is the prospect of your getting electrocuted on the footpaths of Bangalore, with BESCOM just not bothering to carry out any maintenance work on the transformers and other electrical equipment, installed right across your way, it being totally broke (check
here).
Well, if you survive electrocution on footpaths, there are of course the various hazards, obstructions, encroachments, etc, on the footpaths, that can get you, with the BBMP just not bothering to rectify them (or just doing some cosmetic jobs, wherever undertaken), even with the courts coming down heavily on them - check
this.
2) Water: When an earlier Dy Commissioner of Mysore found that, even with Cauvery and Kabini flowing by the city, the citizens were starved for water, he engaged the services of JUSCO (a TATA company) to upgrade the distribution system. To ensure citizen participation in the process, he engaged with the foremost civil society group in the city, viz the highly respected Mysore Grahakara Parishad (MGP). Realising that their well-entrenched vested interests were going to be undermined, the powerful "water mafia" got into the act, and set up a process of systematic sabotage of the scheme. Resulting from it all, at the end of the six-year contract period, the job remains incomplete, and the scheme, that could have been a model for all cities to emulate, stands discredited, much to the delight of the mafia, that's poised to take charge all over again. All the pleadings by the MGP and others to the powers that be, to salvage the situation, remain unheeded, so far - check
here
So, all who want to invest in the state, please also make their own arrangements for their water needs, whether industrial or for drinking.
3) Public transport: The much talked about Namma Metro is taking shape, alright. But, given the size of the work, the progress is slow, and, to reach the levels of London, New York, Paris or even Delhi, it is going to take ages, ie if the agencies involved have not gone bust by then, considering the costs involved.
And, the universally applauded
Namma Railu (Commuter Rail) scheme, which could de-congest the city in the most cost-effective and fast way, doesn't even appear to have acquired the slightest bit of the CM's mind-space, yet.
Meanwhile, the only other form of public transport, in a city like Bengaluru, is the bus services provided by the government-owned monopoly, viz the BMTC. But, because of its serious capacity constraints, it can hardly cater to some 40% of the trips made by the citizens, leading to huge dependency on individualised forms of transport - cars and two-wheelers - this, in turn, leading to near grid-lock scenario, everyday, starting from just outside your gate. And, even with the Central government poised to bring in legislation allowing for reputed private players coming into bus operations, Namma sarkara doesn't appear prepared to entertain them - check
here. Even worse, the government does everything possible to kill the private operators, who have been providing fairly decent services in Mangalore - Udupi, Hubli-Dharwar, and a few other areas, which, luckily for the people there, had escaped the original clamp down - check
this.
As such, you may have the fanciest of cars to take you around. But, be prepared to spend half (if not more) of your working life stuck in traffic.
Beyond these, you have:
Administrative language issue: All government notifications are now issued in Kannada only (check
here). If you so wish, you may ask for an English translation - but, it's still only a translation. As such, if there's a dispute on any matter, and it goes to court, the Kannada document will be the ultimate reference point. This can become quite tricky, particularly when you are dealing with technical issues in this vastly globalised world. This remains so inspite of English being an official language of the state. A distinction has been made by terming Kannada as the administrative language. And, progressively, all communication is happening only in Kannada; likewise information on web-sites too. Further, it is "Kuvempu" level of Kannada (a level higher than even Rajnath Singh-ji's Sanskritised Hindi); so, a passing knowledge will not take you far - not even with the bus conductor, or auto driver, who have begun to up their chauvinistic outlook, buoyed by the government's own outlook.
Besides, asking for a translation does not necessarily mean that you'll get it. If you persist with it, you'll be told it's a "sensitive matter"; but, if you "co-operate" (meaning - don't talk about it), we can "try and help you".
So, don't be fooled by the government inviting Mary Kom to settle down in Bengaluru (When last heard, she had apparently given up the crash course in Shudh Kannada, she was pursuing with a Shastrigalu in Shivmogga, and decided to continue in Manipur and set up a boxing academy there). Moodalu, Mary Kom amma atra Shastri-avara pathae kaelkolli.
Then, of course, we have our waste management problem, stinking storm-water drains problem - you name it, it's all there.
But, of course, we have the God given (not sure, why he has not withdrawn it yet) air-conditioned climate for most part of the year. But, if you want to get the benefit of it, say after 6.30PM, you'll first have to figure out how to keep the mosquito's at bay. The swanky clubs, of which there are a fair number in the cities, and where you can possibly get a Corporate membership, manage it all fairly well. So, if you choose to go there to drown your woes, over a peg or two, make sure you or your associates have not rubbed the officialdom (even if over totally unconnected issues) the wrong way, failing which they will find ways to make life difficult for you, apart from denying you your peg.
Inspite of all of these, there are the Narayana Murthy's, Azim Premji's, Kiran Mazumdar Shaw's, and lately the Bansal's (of Flipkart fame) not just surviving, but thriving too. So, don't be deterred, dear friends - the Indian entrepreneur is intrepid enough to more than "solpa adjust maadi" in all of these situations.
Muralidhar Rao
I have found someone who echoes my views and has no fear. I get frequently abused by insouciant, insenstive, irrational and insecure citizens when I point out these facts to them. The only issues that gets them agitated are Kanndatva and Hindutva.
Bangalore is sitting on a ticking time bomb as regards the water and garbage issues. Is Siddu aware of the issues plaguing Bangalore? If he is then let him do the following:
(1) Announce a rejuvenation program of Arkvathy river supplemented with lake revival across the length and breadth of Bangalore.
(2) Immediate sanction of funds for Namma Railu with the development of Chikkballapur, Doddabbalpur, and other commuter towns. Follow up with the rail board on the SPV for the same. He could do well to seek an appointment with Mr. Prabhu instead of merely going to Delhi and kowtowing to Madam.
(3) Decentralized garbage management with more power to BBMP to penalize citizens who don't segregate garbage at source!
(4) Crack the whip as far as Namma Metro is concerned
(5) Get cracking with BMTC, privatise the parastatal through an IPO if you can't open the sector for competition. I have lost count of the number of times I have complained to BMTC in the last one year. RTI queries posted in English elicit a response in Kannada. Is this pride or chauvinism? In most cases, responses take their own time to come.
(5) Last but not the least don't let the dirty water from Bangalore flow into Vrishabhavathy river!
(6) Look to achieve decentralized growth in Karnataka- Autombile corridors in Belgaum and Hubli, Manufacturing Hubs in Kolar and Tumkur, Financial Districts in Mangalore, Manipal and Udupi. Move out low end garment manufacturing to Tumkur and Chikkaballapur from Bangalore.
All this seems like a pipe dream though!
By the way do our politicians realize that Karnataka as a state has immense potential to become the next tourism hub?
Is scuba diving still banned in Karnataka? Wake up Sid!
A friend responded as below, through a personal mail:
You are absolutely right. Nothing on the ground has changed in the last two years for anyone to be enthused for investment. The one dominant issue since the formation of this Govt. has been whether or not Mr. Parameshwar should be taken into the Cabinet as Dy. C.M. All else are peripheral matters, occasionally spurred for action by the High Court. People are fooled by many "Bhagya " schemes , the latest is "Danta" Bhagya !
Exchanges with a senior bureaucrat on my posting the link to this blog on his twitter handle:
SB: No idea. You should ask those who invested almost $2 billion in IT sector in 2013-14. They must have some good reasons, right?
Me: So, would you then say the issues listed by me are are no issues at all?
SB: No. I'd say some are true. Some are exaggerated. But, fact remains investment happens issues or no issues :)))
Me: Fair enough that you are not denying these issues exist. May be we differ on how serious they are. Thanks for response.
SB: Happy new year.
Me: Wish you the same, Sir
They have launched low cost mineral water under the MSIL Brand Name and that is being touted as an achievement. Canteens are on the way along the lines of Amma Canteen if reports are to be believed.
I am waiting for the day when they would announce Bhanuvarada Badaootada Bhagya! I love my Naati Kozhi and Mudde.
Pun intended.
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