karnataka state report - december 2016

11DECEMBER 2016 For updated information, please visit www.ibef.org

KARNATAKA THE SILICON VALLEY OF INDIA

DECEMBER 2016

22DECEMBER 2016

Executive Summary………………….…. 3

Advantage State………………………... 5

Karnataka Vision 2020………………….6

Karnataka – An Introduction……………7

Karnataka Budget 2016-17……..….…20

Infrastructure Status………………..….23

Business Opportunities…………....….44

Doing Business in Karnataka………...79

State Acts & Policies.......................... 80

For updated information, please visit www.ibef.org


DECEMBER 2016


EXECUTIVE SUMMARY … (1/2)

Source: DIPP, Visvesvaraya Trade Promotion Centre, Karnataka Economic Survey 2015-16

Department of Industrial Policy & Promotion

Strong growth in GSDP

• At current prices, the gross state domestic product (GSDP) of Karnataka was about US$

156.23 billion in 2015-16.

• The per capita GSDP increased to US$ 2,557, growing at a CAGR of 12.91% between

2004-05 and 2015-16.

IT hub of India

• Karnataka is the IT hub of India and home to the fourth largest technology cluster in the

world. Karnataka has 47 IT/ITeS SEZs, three software technology parks and dedicated IT

investment regions.

• Exports of IT and electronic products from the state reached US$ 10.38 billion by the end

of December 2015. Exports of IT and electronic products accounted for around 38% share

in India's IT and electronic products exports and 52.89% share in Karnataka’s overall

exports by the end of December 2015.

Vibrant industrial base

• Karnataka has vibrant automobile, agro, aerospace, textile & garment, biotech and heavy

engineering industries. The state has sector-specific SEZs for key industries such as IT,

biotechnology, engineering, food processing and aerospace.

One of the preferred

investment destinations

• The cumulative FDI inflows in the state from April 2000 to March 2016 were recorded at

US$ 20.24 billion, the fourth highest in India after Maharashtra, Delhi and Chennai, and

accounted for a share of 7% in India’s cumulative FDI inflows.



Source: Indian Minerals Yearbook 2014, Economic Survey of Karnataka 2015-16

Karnataka State Budget 2016-17

Strong growth in export

• As of September 2015, the total exports of the state were recorded at US$ 19.63 billion.

During 2015-16, exports contributed about 40 per cent in the state’s economy. Sectors

such as biotechnology, computer software and electronics are major contributors in the

overall exports from the state.

Strong knowledge

infrastructure

• Karnataka has 44 universities, 4,519 pre-university colleges, 206 engineering colleges

and 293 polytechnics, 47 medical colleges and 38 dental colleges.

• The state also houses 401 R&D centres; around 400 of the Fortune Global 500 companies

outsource their IT services to firms in Bengaluru.

Significant agriculture

base

• Sugarcane is the major crop of the state with production estimates of about 40.5 million

tonnes in 2015-16. The state’s total food grain production is estimated to be 11 million

tonnes in 2015-16. Karnataka is also the third largest producer of plantation crops in the

country.

Strong growth in

tourism sector

• Karnataka boasts of a diverse flora and fauna and a 320 km natural coast line, which

makes it a nature tourist's paradise. Tourist arrivals in the state increased from 25.2 million

in 2005-06 to 120.5 million in 2015-16. The state has world heritage sites at Hampi and

Pattadakal. The sector contributes 14.8% to GSDP of Karnataka; plans are afoot to

expand to 26% by 2020.

EXECUTIVE SUMMARY … (2/2)



Source: Karnataka Udyog Mitra, D&B Cluster State Overview, Karnataka Vision 2020, Department of Industrial Policy and Promotion, Visvesvaraya Trade

Promotion Centre,

Growing demandHigh economic growth

• GSDP expanded at a CAGR of 13.93% between 2004-05 and 2015-16.

• Buoyant services (IT, tourism) and industries driving economic growth.

• Sector specific SEZs and SIRs facilitating growth.

Rich talent pool

• Karnataka is termed as the Knowledge Capital of India.

• The state has successfully attracted skilled labour, especially, in the knowledge sector. Karnataka is among the states that produce a large number of doctors, engineers and medical technicians in the country.

Policy support

• Wide range of fiscal and policy incentives for businesses under the Karnataka Industrial Policy, 2014-19.

• Investor-friendly sector-specific policies to promote industries such as IT, biotechnology, tourism and manufacturing.

• Simplified procedures for investment.

Infrastructure

• Well-developed social, physical and industrial infrastructure.

• Good road, rail, water and air connectivity and substantial port infrastructure.

• Well-developed telecom infrastructure.

• Excellent healthcare facilities.

June 2016

Capacity

allocated for

Solar energy-

2,320.50 MW

2022

target

Solar energy

share in total

energy

consumption

is expected to

reach 3%

ADVANTAGE: KARNATAKA


Advantage

Karnataka


KARNATAKA VISION 2020

Healthcare/

Social

amenities

Education/

Skill

development

Infrastructure

Women

empowerment

Governance

Poor and

backward

classes

Tourism

• Improve access and

availability of quality

healthcare for all.

• Build infrastructure to boost

productive potential of the

economy.

• Various metro rail and mono

rail projects are in progress.

• Develop the state as a vibrant

knowledge society.

• Focus on job oriented growth

through skill development of the

workforce.

• Enhance opportunities and

empower women across

economic, social and

political spheres.

• Better governance through

wider participation and deep

democratic decentralisation.

• Encourage transparency and

accountability.

• Increase rural incomes

through greater viability of

agriculture and allied activities.

• Bridge the gap between

socially backward and

vulnerable groups and rest

of the people.

• Preserve and promote

Karnataka’s rich heritage.

• Karnataka Tourism Vision

Group (KTVG) was set up in

October 2013 to advise on

promoting tourism in state.

Industry

• Build and sustain Bangalore’s

leadership in science,

technology and knowledge

based industries.

• Achieve a sustainable and

orderly process of

industrialisation and

urbanisation.

Source: State Planning Department


Vision

2020


KARNATAKA FACT FILE

Karnataka is located in the southern region of India. The

state is surrounded by the Arabian Sea in the west, Goa in

the northwest, Maharashtra in the north, Andhra Pradesh in

the east, Tamil Nadu in the southeast, and Kerala in the

southwest.

Languages spoken are Kannada, Tulu, Kodava, Hindi and

English.

Some of the prominent cities in the state are Ankola,

Bengaluru, Bagalkot, Belgaum, Bidar, Bijapur, Chikmagalur,

Chitradurga, Dandeli, Hubli-Dharwad, Mangalore, Mysore

and Shimoga.

Karnataka has a tropical climate with three major seasons:

warm and dry from February to May, monsoon from June to

October and winter from November to January.

Source: Economic Survey of Karnataka 2015-16, Census 2011

Office of Registrar General, India.

Parameters Karnataka

Capital Bengaluru

Geographical area (sq km) 192,000

Administrative districts (No) 30

Population density (persons per sq km) 319

Total population (million) 61.1

Sex ratio (females per 1,000 males) 973

Literacy rate (%) 75.6

Male literacy rate 82.5

Female literacy rate 68.1

Source: Maps of India


88DECEMBER 2016

Parameter Karnataka All states Source

Economy 2015-16 2015-16

GSDP as a percentage of all states’ GSDP 7.54 100.0Directorate of Economics & Statistics of Karnataka,

Central Statistics Office

GSDP growth rate (%) 12.7 8.64Directorate of Economics & Statistics of Karnataka,


Per capita GSDP (US$) 2,557 1,546Directorate of Economics & Statistics of Karnataka,


Physical Infrastructure

Installed power capacity (MW) 17,333.92 304,505.75 Central Electricity Authority, as of June 2016

Wireless subscribers (No) 61,425,046 1,033,157,014Telecom Regulatory Authority of India - as of May

2016

Internet subscribers (No) 22,210,000 334,340,000Ministry of Communications & Information

Technology - as of January 2016

National Highway length (km) 6,502.29 100,087.08NHAI & Karnataka Roads and Building

Department, 2015-16

Major and minor ports (No) 1+10 13+187 India Ports Association

Airports (No) 5 125 Airports Authority of India


KARNATAKA IN FIGURES … (1/2)


99DECEMBER 2016

Parameter Karnataka All states Source

Social Indicators

Literacy rate (%) 75.6 73.0 Census, 2011

Birth rate (per 1,000 population) 18.5 21.6 SRS Bulletin

Investment

FDI equity inflows (US$ billion) 20.24 288.51Department of Industrial Policy & Promotion,

April 2000 to March 2016

Industrial Infrastructure

PPP projects completed & operational (No) 129 1,246Department of Economic Affairs, Ministry of

Finance, Government of India, July 2016

Operational SEZs (No) 25 186Department of Commerce, Ministry of

Commerce & Industry, July 2016

PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System


KARNATAKA IN FIGURES … (2/2)


1010DECEMBER 2016

At current prices, the gross state domestic product (GSDP*)

of Karnataka stood at about US$ 158.89 billion in 2015-16.

The GSDP of the state grew at a CAGR of 14.1% between

2004-05 and 2015-16.

Growth has been mainly driven by secondary and tertiary

sectors.

Source: Directorate of Economics & Statistics of Karnataka, Central

Statistics Office

GSDP* -Karnataka Socio Economic Survey 2015-16

GSDP of Karnataka at current prices (US$ billion)


ECONOMIC SNAPSHOT – GSDP


CAGR:

14.10%

37.2 44.4 50.367.2 67.3 71.2

90.0 94.6 96.2 102.0115.9

158.8

20

04-0

5

20

05-0

6

20

06-0

7

20

07-0

8

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

20

15-1

6

1111DECEMBER 2016

The net state domestic product (NSDP#) of

Karnataka was recorded at about US$ 145.6 billion

in 2015-16.

The NSDP of the state grew at a CAGR of 14.38%

between 2004-05 and 2015-16.

NSDP of Karnataka at current prices (US$ billion)


ECONOMIC SNAPSHOT – NSDP


Source: Directorate of Economics & Statistics of Karnataka, Central

Statistics Office

NSDP# -Karnataka Socio Economic Survey 2015-16

CAGR:

14.38%

33.2 39.6 45.260.3 60.4 63.4

80.7 84.5 85.1 85.7103.2

145.6

20

04-0

5

20

05-0

6

20

06-0

7

20

07-0

8

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

20

15-1

6

1212DECEMBER 2016

The state’s per capita GSDP^ was US$ 2,532 in 2015-16.

The per capita GSDP increased at a CAGR of 12.8%

between 2004-05 and 2015-16.

GSDP per capita of Karnataka at current prices (US$)


ECONOMIC SNAPSHOT – PER CAPITA GSDP


Source: Directorate of Economics & Statistics of Karnataka,


Per Capita GSDP^ - calculated using GSDP million

US$/Population in million

CAGR:

12.80%

673 793 8891173 1161 1216

1522 1582 1594 16721900

2,532

20

04-0

5

20

05-0

6

20

06-0

7

20

07-0

8

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

20

15-1

6

1313DECEMBER 2016

The state’s per capita NSDP& in 2014-15 was

US$ 2,321.

The per capita NSDP increased at a CAGR of

13.09% between 2004-05 and 2015-16.

NSDP per capita of Karnataka at current prices (US$)


ECONOMIC SNAPSHOT – PER CAPITA NSDP




per capita NSDP& -calculated using NSDP million

US$/Population in million

CAGR:

13.09%

600 708 7981053 1043 1083

1364 1414 1409 14051692

2321

20

04-0

5

20

05-0

6

20

06-0

7

20

07-0

8

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

20

15-1

6


ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP


In 2015-16, the tertiary sectorµ contributed 64.05% to the

state’s GSDP at current prices, followed by the secondary

sector (22.97%) and the primary sector (12.98%).

At a CAGR of 16.31%, the tertiary sector has been the

fastest growing among the three sectors from 2004-05 to

2015-16. The growth has been driven by trade, hotels, real

estate, finance, insurance, transport, communications and

other services.

The secondary sectorµ grew at a CAGR of 11.5% between

2004-05 and 2015-16. This was driven by manufacturing,

construction and electricity, gas & water supply.

The primary sectorµ grew at a CAGR of 9.61% between

2004-05 and 2015-16.

GSDP composition by sector

19.86%12.98%

29.12%

22.97%

51.02%64.05%

2004-05 2015-16

Primary Sector Secondary Sector Tertiary Sector


Central Statistics Office, TechSci Research

Sector-wise %share of GSDPµ -Karnataka Socio Economic

Survey 2015-16

CAGR

9.61%

16.31%

11.50%

1515DECEMBER 2016

Source: Department of Agriculture & Corporation, Government of Karnataka

Production of major crops in Karnataka (lakh

tonnes)

Crop 2015-16

Cereals 97.5

Pulses 12.5

Total food grains 110

Oilseeds 9.6

Sugarcane 405

Tobacco 0.82

Vegetables 84.78

Plantation 40.69

Spices 3.43

Horticulture crops 202.19

Sugarcane is a major crop of the state with production estimates of

about 40.50 million tonnes in 2015-16. The state’s total food grain

production is estimated to be 11 million tonnes during 2015-16.

During 2015-16, major oilseeds production in the state is estimated

to be 0.96 million tonnes. Production of cereals and pulses in the

state is estimated to be 0.97 million tonnes and 0.12 million tonnes,

respectively, in 2015-16.

In 2015-16, total production of major fruits in the state was 6.78

million tonnes.


ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION


Area under major crops in Karnataka (lakh hectares)

Crop 2014-15 2015-16

Cereals 49.45 45.58

Pulses 24.32 29.92

Total food grains 73.77 75.5

Oilseeds 15.01 13.54

Sugarcane 4.4 6.34

Tobacco 1.05 0.99

Source: Department of Agriculture & Corporation, Government of Karnataka

1616DECEMBER 2016

Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka;

Note: 2015-16(1) : Till September 2015


ECONOMIC SNAPSHOT – EXPORTS…(1/3)


During 2015-16, exports from the state contributed about

40% to the state’s economy, with biotechnology,

computer software and electronics being the major

exports.

As of September 2015, total exports from the state

aggregated to US$ 19.63 billion. Karnataka’s exports

increased at a CAGR of 9.4 per cent during 2010-11 to

2014-15.

By the end of September 2015, electronics and software

exports from the state reached US$ 10.38 billion, which

constituted 53 per cent share of the state’s total exports.

Exports from Karnataka (in US$ billion)

36.28 45.47 47.57 48.18 52.02

19.63

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

20

15-1

6⁽¹⁾

Karnataka exports by commodity (US$ million)

Commodity 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16(1)

Electronics & computer software 23,093.16 28,186.16 28,723.99 29,528.87 32,186.46 10,384.96

Readymade garments 1,505.04 1,691.88 1,412.26 1,476.44 1,629.23 877.94

Petroleum & petroleum products 3,200.79 4,865.57 6,244.71 5,871.27 6,782.02 1,010.23

Engineering goods 1,605.44 1,716.81 2,314.12 2,982.42 3,476.78 2,634.43

Iron ores & minerals (incl granites) 212.19 235.61 319.46 122.59 124.25 1,062.93

1717DECEMBER 2016

Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka;





Karnataka exports by commodity (US$ million)

Commodity 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16(1)

Silk products 148.62 139.83 120.42 107.83 91.90 32.53

Coffee 478.74 659.26 650.71 596.88 824.98 256.18

Basic chemicals, pharmaceuticals

and cosmetics634.15 1,054.85 1,331.80 1,376.91 978.10 520.92

Agriculture & processed food

products146.87 158.53 211.56 215.66 229.43 412.92

Gems and jewellery 4,361.46 4,929.98 4,508.01 4,010.45 3,649.30 2,182.85

Cashew and cashew kernels 128.67 183.25 155.96 199.07 249.67 43.69

Handicrafts 64.23 55.47 68.86 85.60 90.91 13.74

Leather products 44.28 66.49 83.23 74.65 90.08 21.38

Chemicals and allied products 74.09 99.73 90.41 93.23 158.43 109.22

Marine products 115.74 125.70 116.37 177.01 217.82 22.91

Plastic goods 123.41 125.49 145.09 116.12 62.38 8.55

Spices 98.64 145.44 166.45 190.78 186.79 20.31

Wool & woollen products 19.95 26.80 27.62 29.20 31.69 0.61

Miscellaneous 227.53 1,001.04 881.79 923.19 958.36 19.24

1818DECEMBER 2016Source: Economic Survey of Karnataka 2015-16




Incentives & concessions for export in Karnataka

Exemption from entry tax

Refund of certification charges

Refund of cost incurred for export consultancy / market Intelligence studies

Brand promotion and quality assurance

Support for the establishment of CFS and other export infrastructure

Compensation of export Credit.

Support for development of exports in gherkins, rose onions and floriculture.

Market development assistance for trade promotion and overseas trade delegations.

Policies for export promotion

Industrial Policy 2014-19 Karnataka Tourism Policy 2009

Karnataka State Mineral Policy 2008 Karnataka Semi Conductor Policy 2010

Grape Processing & Wine Policy 2007 Karnataka Solar Policy 2011

Karnataka Renewable Energy Policy 2009 Karnataka Integrated Agribusiness Development policy 2011

Karnataka SEZ Policy 2009 Karnataka Animation Visual Effects & Comic Policy 2012

Karnataka Pharmaceutical Policy 2013 Karnataka New Infrastructure Policy 2013

1919DECEMBER 2016

The state has a stable political environment.

Successive state governments have recognised

the importance of industries in the state and

have provided a conducive business

environment to attract domestic as well as

foreign entities. Karnataka is ranked fifth in

terms of attracting private sector investments in

India. According to the Department of Industrial

Policy & Promotion (DIPP), the cumulative FDI

inflows from April 2000 to March 2016 were

recorded at US$ 20.24 billion, the fourth highest

in India after Maharashtra, Delhi and Chennai,

and accounted for a share of 7% in India’s

cumulative FDI inflows.

Source: Department of Industrial Policy & Promotion

Directorate of Economics and Statistics, Government of Karnataka


ECONOMIC SNAPSHOT – FDI INFLOWS & INVESTMENTS


FDI equity inflows, 2008-09 to 2015-16 (US$ billion)

2

1 1.12 1.53

1.02

1.89

3.44

4.12

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Investment intentions in terms of IEMs filed, LOIs/DILs issued in Karnataka

269

217

169

11089

106123

21.43 14.54 7.33 1.54 3.34 4.84 7.43

2010 2011 2012 2013 2014 2015 2016¹

Number of Investment Intentions Proposed Investments (US$ Billion)

2020DECEMBER 2016

Total consolidated budget size for 2016-17 was US$ 24.96 billion.

Budget highlights:

Under the Matsyashraya scheme, houseless fishermen will be provided with 3,000 houses.

Work on improvement of Malaprabha Canal will be implemented at a projected cost of US$ 146.95 million during 2016-

17.

Within 2016, all school and college students will be enrolled under Aadhaar system to enhance services related to

education in the state.

At an amount of US$ 0.76 million, 5 engineering colleges in the state will be employed with courses of IT, telecom,

tourism, healthcare, retail, cyber security, etc. with Indo-German collaboration.

The new scheme - “Indira Suraksha” scheme will be executed in the state for families of farmers who have committed

suicide with the integrated healthcare services.

The employment of smart card for the ticketing purposes will be initiated in the state along with the installation of Vehicle

Transport System across the fleet of NWKRTC, NEKRTC and KSRTC.

Under the Chief Minister’s special package, US$ 15.27 million, US$ 76.38 million, US$ 122.21 million and US$ 38.19

million have been allocated for the lake enhancement, solid waste management, storm water drain manufacturing and

improvement of 110 villages as well as city and town municipalities under Bruhat Bengaluru Mahanagara Palike (BBMP),

respectively, in the state.


ANNUAL BUDGET 2016-17…(1/3)


Source: Government of Karnataka, Budget 2016-17

2121DECEMBER 2016

Primary & Secondary education :

The state government has taken various initiatives such

as, “Nali Kali”, “not for profit organization”, etc., for

enhancement of quality education across all government

schools in the state.

A comprehensive e-content programme, “IT@Schools in

Karnataka” will be launched by high school teachers for

delivering digital literacy to government high school

students.

Reassurance of yoga education in government schools.



Source: Government of Karnataka, Budget 2015-16


Sector

Annual allocation

(US$ million)

2015-16

Annual allocation

(US$ million)

2016-17

Primary & secondary

education2,475.40 2,653.98

Higher education 595.17 710.51

Energy 2,125.08 1,929.72

Water resources 2,149.30 2,211.57

Urban development 1,891.9 2,269.01

Social welfare 756.4 834.70

Health and family

welfare1,007.7 768.71

Agriculture 644.16 663.61

Horticulture 126.07 115.03

Sericulture 30.85 56.06

Fisheries 49.27 46.13

Forest, environment and

Ecology291.47 245.79

Major sector-wise allocations as per budget 2015-

16 & 2016-17

Higher education:

For accentuating knowledge as well as fiscal necessities

in the state, Karnataka Education Policy will be deployed.

For presenting the state’s educational and cultural legacy,

the state government has decided to develop Karnataka

Heritage Centre at a cost of US$ 0.30 million in

Karnataka Folklore University.

The state government has allocated US$ 1.52 million for

allowing the government colleges to obtain UGC grant by

getting the NAAC recognition.

2222DECEMBER 2016

Agriculture:

Recognition of special agricultural zones will be initiated in the state for focusing over the welfare of farmers and their operative

agricultural techniques.

Under the programme “Suvarna Krishi Grama”, 100 villages across 4 district of 4 revenue divisions are proposed to be developed

as model agricultural villages.

For delivering 90% funding for sprinkler units and drip irrigation, the state government decided to include around one lakh farmers

under various schemes such as R.K.V.Y, “Chief Ministers Sookshma Neeravari Yojane” and Krishi Bhagya, for which an amount

of US$ 45.82 million would be allocated during 2016-17.




Energy:

The creation of infrastructure for 50,000 pump sets will be initiated during 2016-17.

The state government is engaged in the creation of 2,000 MW of solar parks in the district of Tumkur, which is estimated to yield

600 MW by the end of 2017.

As per state budget 2016-17, US$ 1.92 billion has been allocated for the Energy Department.

CleanMax Solar, a Mumbai based firm is planning to invest US$ 183.31 million for building a 200 MW solar farm project in the

state.

Water Resources:

The work on enhancement of Malaprabha Canal is proposed to be initiated in the state for which the state government has

allocated US$ 146.95 million.

As per state budget 2016-17, US$ 2.21 billion has been allocated for the Water Resource Department.


The state is well connected to its five neighbouring

states and other parts of India through 15 national

highways that run through the state. The Karnataka

State Road Transport Corporation (KSRTC),

established in August 1961, provides state road

transport services.

During 2015-16, a total of 1,455.56 km and 759.76 km

roads were constructed under “Namma Grama Namma

Rasthe” scheme and PMGSY, respectively by the state

government.

As per state budget 2016-17, the state government

allocated US$ 551.32 million for the improvement of

rural roads in the state during 2016-17.

During 2015-16, NABARD loan assistance scheme took the

manufacturing of achkout roads under its supervision. Moreover,

construction work of 167 roads, at an estimated cost of US$ 21.34 million

was fulfilled during 2015-16, while 91 roads are being constructed from

RIDF-XVII to RIDF-XX, at an estimated cost of US$ 13.03 million .

With an outlay of US$ 455.69 million, the state government completed the

development of major district roads of length 5,573 km during 2015-16.

However, the construction of state highways of length 7,875 km along with

87 bridges was also completed during the same period.

Other development works include – improvement of municipality roads,

development of Central Business District roads, development of roads

under the Chief Minister’s Nagarothana scheme, manufacturing of Jattur

bridge across Kagina river as well as Kudalasangama Adavihala bridge,

etc. in the state.

Source: Ministry of Road Transport & Highways, Government of Karnataka, State Budget, 2016-17

Road infrastructure in Karnataka (km)

Road type 2015-16

National highways 6.502.29

State highways 27,163

Major district roads 55,515

Municipal roads 8,366

Other roads 155,545

PHYSICAL INFRASTRUCTURE – ROADS


Source: Maps of India

2424DECEMBER 2016Source: Economic Survey of Karnataka, 2015-16, State Budget 2016-17

Karnataka railway network

Type of railway BG (km)MG

(km)

NG

(Km)Total (km)

South Central

Railways268 0 0 268

South Western

Railways2,516 97 84 2,697

Southern Railways 37 0 0 37

Konkan Railways 248 0 0 248

Total 3,069 97 84 3,250

Karnataka is well connected to other parts of the country

through the railways. The state has a railway network of

3,250 km.

Karnataka Rail Infrastructure Development Corporation (K-

RIDE) has been set up with the objective of developing and

implementing rail infrastructure projects in Karnataka with

private sector participation wherever feasible. K-RIDE has

a chief executive officer deputed from the Railways

Department and principal secretary, Infrastructure

Development Department, as its chairman.

During 2015-16, Karnataka’s metro network of about 27 km

was made operational. In addition, by November 2015, the

6.50 km section between the terminal of Magadi and

Mysuru road was initiated. However, development work for

phase-I is expected to be completed by mid-2016.

Further, the state government granted contracts for two

reaches of phase II, which are slated for completion by

2020.

During 2015-16, an amount of US$ 67.36 million was

released by the Government of Karnataka for development

of various railway projects in the state.


PHYSICAL INFRASTRUCTURE – RAILWAYS


Status of major railway projects in Karnataka (2015-16)

Railway project Status

Ramanagara-Mysuru doubling track Commissioned for transport

Bidar-Kalaburagi new railway line Completed

Bengaluru-Hasana railway line On stage of completion

Bagalakote-Kuduchi railway line

Approved by Government of

Karnataka; amount released for

land acquisition

Ginigera-Rayachuru railway line

Gadaga-Wadi railway line

TumakuruRayadurga railway line

2525DECEMBER 2016Source: AAI, Global Investors Meet, Budget 2016-17

The Belagavi airport of the state has been provided with 370

acres of land during 2015-16. Work on the airport and runway

extension is also expected to be accomplished by 2016-17.

The state has five domestic airports. These are located in

Bengaluru, Mangalore, Hubli, Mysore and Belgaum.

International flights operate from the airports at Bengaluru

(Kempegowda International Airport) and Mangalore (Mangalore

International Airport).

Bengaluru International Airport; the country’s first greenfield

international airport, has been developed at Devanahalli in

Bengaluru as a passenger and cargo department hub. This was

developed under PPP and started operations in May 2008.


PHYSICAL INFRASTRUCTURE – AIRPORTS


Karnataka airport statistics (2015-16)

AirportPassenger

traffic (No.)

Aircraft movement

(No.)Freight (tonnes)

Bengaluru 18,971,149 153,063 291,950

Mangalore 1,674,251 13,805 936

Karnataka airport statistics (2014-15)

Bengaluru 15,401,392 133,488 279,475

Mangalore 1,307,083 11,501 684

During 2015-16, work on planning and preparation of

terminal 2 and second parallel runway of

Kempegowda International Airport was initiated. This

construction will enable the airport to handle around

35 million passengers per year.

Further, work on development of Kalaburagi airport

by PWD is expected to be concluded during 2016-17.

Moreover, on the basis of PPP, the work on

development of Shivamogga airport will also be

executed during 2016-17.


PHYSICAL INFRASTRUCTURE – PORTS… (1/2)


Ports

Major ports • New Mangalore Port

Minor ports

• Karwar

• Belekeri

• Tadri

• Honnavar

• Bhatkal

• Kundapur

• Hangarkatta

• Malpe

• Padubidri

• Old Mangalore

Source: Indian Port Association, Note: 1Up to December 2015

Karwar Port

New Mangalore Port

There are 13 ports in Karnataka, of which New Mangalore is a major

port. New Mangalore Port is the ninth major port in India with the

deepest inner harbour on the west coast.

The work on development of the second stage of Karwar port has

been initiated under the concept of D-BOOST in PPP mode.

However, the bid document issue is under consideration by the state

government.

As per budget 2016-17, the state government proposed allocation of

US$ 19.09 million for manufacturing of breakwaters on Karwar port’s

northern side.

Cargo handled by New Mangalore port (in ‘000 tonnes)

31,350 32,941 37,036 39,365 36,566

25,290

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016¹


PHYSICAL INFRASTRUCTURE – PORTS… (2/2)


Source: Karnataka Economic Survey 2015-16;

Note: 2015-16(1) : Till December 2015

Cargo handled by various minor ports in Karnataka (‘000 MT)

Airport 2011-12 2012-13 2013-14 2014-15 2015-16(1)

Old Mangalore 87.83 165.93 120.26 115.89 66.16

Karwar 497.20 441.19 377.10 525.07 481.40

Malpe, Belekeri, Hangarkatta

& Kundapur 6.81 4.74 3.00 2.31 1.22

Total 591.84 611.86 500.36 643.27 548.71

During 2015-16, the state government initiated the work on development of Pavinakurve port, under PPP mode, in the district of Uttar

Kannada. However, the draft concessional agreement and pre-feasibility report preparations related to the port are under process.

Additionally, the Infrastructure Development Department (IDD) has initiated the development of Tadri sea port at a projected amount

of US$ 458.29 million. The state government has also assigned 8,000 sq km of port land at the minor port of Old Mangalore during

2015-16.

2828DECEMBER 2016

As of June 2016, the state had an installed power generation

capacity of 17,333.92 MW. Out of this, central utilities contributed

2,104.32 MW, private utilities contributed 7,126.55 MW and

8,103.05 MW was under state utilities.

Of the total installed power generation capacity, 8,142.88 MW

was contributed by thermal power. Capacities of 475.86 MW and

5,115.38 MW were contributed by nuclear and renewable power,

respectively, while hydropower contributed 3,599.80 MW.

The state government has taken steps to undertake several new

small, medium and large scale power projects. As per the state

budget 2016-17, the total electricity production capacity added

during 2015-16 was recorded to be 1,333.85 MW. However, the

state government is planning to add electricity production

capacity of about 2,655.40 MW during 2016-17.

Karnataka Renewable Energy Development Limited (KREDL)

was established in 1996 to promote the development of

renewable energy sources in the state.

As per budget 2016-17, the state government has initiated the

setting up of a 2,000 MW solar park in Tumkur district which is

estimated to produce 600 MW by the end of March 2017.

Planning of construction of another 1,200 MW solar plant is

being done by the state government during 2016-17.

Source: Central Electricity Authority, As of November 2015

Installed power capacity (GW)


PHYSICAL INFRASTRUCTURE – POWER


8.52 8.69

11.37 12.0613.93 14.03

15.1417.32

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

20

15-1

6

As per the budget 2016-17, the state government

has allocated an of US$ 1.9 billion for

enhancement of the power sector in the state.

The establishment work of a gas-based power

plant in Yelahanka is estimated to be initiated

during 2016-17 by the state government. Further,

KPCL is expected to create a 200 MW solar power

plant during 2016-17.

2929DECEMBER 2016

Telecom infrastructure (As of May 2016)

Wireless subscribers 61,425,046

Wire-line subscribers 2,245,532

Internet subscribers 20,980,000(1)

Post offices 9,667(2)

Teledensity (in %) 101.86

Source: Telecom Regulatory Authority of India,

Economic Survey of Karnataka, (1) As of June 2015; (2) As of December 2015

GP-Gram Panchayat

Leading telecom companies operate in the state in the sectors of

telecommunication network, basic telephony services (both wire

line and wireless) and networking services for telecommunication

equipment.

According to Telecom Regulatory Authority of India (TRAI), there

were 61.43 million wireless subscribers and 2.25 million wire-line

subscribers in Karnataka, as of May 2016.

The entire state is networked through optical fibre cables (OFCs)

of the state-owned company, Bharat Sanchar Nigam Limited

(BSNL), as well as private companies such as Bharti, Reliance,

VSNL and TATA Tele Services.

Last mile access is provided by BSNL as well as Tata Tele

Services in various parts of the state. Bharti and Reliance

Communications provide the last-mile access directly to the

customers in all major cities of Karnataka.

By the end of May 2016, 24,284,982 subscribers had submitted

requests for mobile number portability in Karnataka.

Out of the total allocated amount of US $91.65 million in Bharat

Net project, BSNL invested US $61.10 million to increase the

speed of gram panchayat connectivity in Karnataka, through high-

speed broadband and FTTH (fibre-to-the-home).

By March 2017, the state plans to provide Wi-Fi connectivity to all

villages. The project will be jointly implemented by BSNL and

Karnataka State Electronics Development Corporation

(KEONICS).


PHYSICAL INFRASTRUCTURE – TELECOM


Performance status of NOFN Project

(As of April 2016)

No. of GPs in Phase-I 5,599

Pipe Laid (kms.) 10,195

Cabe Laid (kms.) 10,269

GPs for which cable laid 5,004

No. of GPs Lit 2,865

3030DECEMBER 2016

Water supply Sewerage system

• KUWSDB has implemented

surface-based drinking water

supply schemes in 187 urban

areas to provide assured safe

drinking water.

• KUWSDB is implementing 26

schemes for shifting the source of

water from ground water to

assured surface water. They are

to be completed by 2013.

• Cauvery Water Supply Scheme

(CWSS) Stage IV, Phases I–IV

are being implemented to supply

810 MLD of water to about

600,000 connections.

• The Bengaluru Water

Supply and Sewerage

Board (BWSSB) is

responsible for

providing water

supply, sewerage

system and sewage

disposal in the

Bengaluru

Metropolitan area.

• Forty-two urban areas

have been provided

with Underground

Drainage (UGD)

facilities in the state.

Karnataka is among the top ten most urbanised states in

India. The state is projected to reach an urban population

proportion of 50% by 2026. Some of the key areas of

development are roads and flyovers, water supply, storm-

water drainage, sewerage and urban transport.

The Karnataka Urban Water Supply and Drainage Board

(KUWSDB) is responsible for providing water supply and

sewerage facilities in 218 urban areas of the state, except the

areas serviced by the Bruhath Bengaluru Mahanagar Palike

(provides services in Bengaluru city and surrounding areas).

Karnataka has ten city corporations, 56 city municipal

councils, 92 town municipal councils, 55 town panchayats and

5 notified area committees.

As per budget 2016-17, an amount of US$ 2,269.01 million

has been proposed for urban development. As per budget

2016-17, under Rajeev Awas Yojana’s 20 schemes for 10

cities, the construction of 22,000 houses is under progress in

the state.

For the development of Nagarothana phase-3 project for 10

City Corporations, an amount of US$ 45.52 million has been

granted by the state government during 2015-16.


DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE… (1/2)


Source: JNNURM, Ministry of Urban Development

During 2015-16, a private operator has been assigned by

the state government at Hubli-Dharwad for providing 24X7

water supply under Karnataka Urban Water Supply

Modernisation Programme (K.U.W.S.M.P).

Moreover, the state government has finished the 27-km

network of Metro rail and the phase-1 project is expected

to be completed by mid-2016.

3131DECEMBER 2016

Development projects under Directorate of Municipal Administration:

Solid waste management proposals amounting to US$ 88.45 million were approved by the state government during 2015-16.

The government aims to employ scientific solid waste management schemes across various municipalities during 2016-17, for

which an amount of US$ 11.45 million has been allocated.

The state government aims at completing the work of enhancement of road network of 870 km during 2016-17.

Under Chief Minister’s Small and Medium Towns Development stage-2, grants have been fully released to every municipality in

the state. The state government is aiming to begin the programmes’ stage-3 during 2016-17 at a cost of US$ 319.73 million.

During 2015-16, the grants under JNNURM and UIDSSMT have been minimised for the central government approved projects

and the state government has decided to offer US$ 148.59 million to fill the gap.

The state government has allocated US$ 7.63 million for basic infrastructure development of Haveri, Chikkaballapura and

Chamarajanagar towns of Karnataka during 2015-16.


DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE … (2/2)


Source: Budget 2016-17

3232DECEMBER 2016

Source: Department of Economic Affairs, Government of India


DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS … (1/2)


Under construction PPP projects - Karnataka

Project name Sector StatusTotal cost

(US$ million)

Road Upgradation (Karnataka) Project Transport Under construction 108.66

Setting up of mechanized iron ore handling facilities at deep

draft multi-purpose berth of NMPTTransport Under construction 45.97

Six laning of Belgaum - Dharwad Section Road Transport Under construction 79.63

Sports City cum International Convention Centre cum Star

Hotel cum Shopping Complex cum Residential Complex

Social and commercial

infrastructureUnder construction 149.3

Airport (Hassan) Project Transport Under construction 497.68

Waste to Energy Project Mandur Water sanitation Under construction 9.95

Bus Terminal-cum-Commercial complex at Puttur Transport Under construction 1.21

Water Supply Scheme (Mysore) Water sanitation Under construction 32.27

Construction and Maintenance of Public Toilets in BengaluruSocial and commercial


Water Supply Scheme (Nanjangud)Water sanitation

Under construction 4.74


DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS … (2/2)


Source: Department of Economic Affairs, Government of India

PPP Projects – Karnataka

Project name Sector StatusTotal cost

(US$ million)

Development of integrated solid Waste Treatment (100 TPD)

and Landfill Facilities at BelgaumWater sanitation Under construction 0.85

Development of International Convention Centre at DevanahalliSocial and commercial


Integrated Disposal Facility (Mysore) Water sanitation Under construction 4.62

Integrated Municipal solid waste treatment Kannahalli Water sanitation Under construction 4.15

Integrated Municipal solid waste treatment Mavalipura Water sanitation Under construction 6.64

Karnataka Urban Water Sector Improvement Project Water sanitation Under construction 11.61

Kudgi TPS Transmission Line Project Energy Under construction 223.95

Malleshwaram Market - Re-developmentSocial and commercial


New Puttanna Theatre and ParkingSocial and commercial


Road Upgradation (Goa/Karnataka Border-Kundapur) Project Transport Under construction 437.79

Road Upgradation (Hoskote-Dobespet) Project Transport Under construction 191.27


DEVELOPMENT PROJECTS: SEZs AND INDUSTRIAL CLUSTERS … (1/4)


The state has 25 operational, 40 notified SEZs,

one valid in-principle approval and 61 formal

approval SEZs as of July 2016. The Karnataka

Industrial Areas Development Board has

developed 141 industrial areas spread across the

state. The state plans to develop and upgrade

eight clusters around Bengaluru with an

investment of US$ 348.4 million in coming years.

The Karnataka State Industrial & Infrastructure

Development Corporation has promoted more

than 135 start-up ventures in the state through

equity participation and has provided debt to core

industries such as steel, cement, mining and

textiles, as well as new sectors such as IT,

aerospace and telecom.

An IT Park project in Gulbarga has been taken up

by Karnataka State Electronics Development

Corporation Limited in 3 phases, during 2015-16,

with a built up area of 150 thousand sq ft at an

amount of US$ 3.65 million.

Source: Department of Commerce, Ministry of Commerce & Industry

Sector-wise Operational SEZs In Karnataka (as on July 2016)

IT/ITeS68%

Biotechnology4%

Hi-tech engineering

products and related services

4%

Electronics hardware and software/ITeS

4%

Aerospace and industry

4%

Pharmaceuticals4%

Textile4%

Multi product4%

Precision engineering

product4%




Name/Developer Location Primary industry

Biocon Special Economic Zone Anekal Taluk, Banglore, Karnataka Biotechnology

Synefra Special Economic Zone Udupi Taluk, KarnatakaHi-tech engineering products and

related services

Manyata Embassy Business park SEZ Bangalore, Karnataka IT/ITeS

Wipro Limited (Electronic City)Varthur Hubli, Electronic City,

Banglore, KarnatakaIT

Wipro Limited (Sarjapur)Varthur Hobli, Sarjapur Road,

KarnatakaIT

Infosys Ltd. SEZ (Mangalore)Bantwal Taluk, Dakshina,

Kannada distt. , KarnatakaIT/ITeS

Infosys Ltd SEZ (Mysore)Hebbal Industrial Area, Distt.

Mysore, KarnatakaIT/ITeS

Vrindavan Techvillage Sez (formerly

M.S. Vikas Telecom Ltd)Bangalore, Karnataka IT/ITeS

Rmz Ecoworld Infrastructure Pvt. Ltd.

[Formerly Adarsh Prime Projects Pvt.

Ltd

Devarabeesana halli, Bhoganahalli

and Doddakanahalli, KarnatakaIT/ITeS

Kiadb Aerospace SEZ Karnataka Aerospace and industry

Keonics ShimogaVillage Machenahalli and Nidige, District

Shimoga, Karnataka

Electronics hardware

and software/ITeS

Some of the operational SEZs in Karnataka

Source: Department of Industries and Commerce, Karnataka





Divyasree Technopark Kundalahalli Village, Krishnarajapuram, Karnataka IT/ITeS

International Technology Park Ltd (ITPL) Bangalore Karnataka IT/ITeS

Cessna SEZ Bangalore Karnataka IT/ITeS

Global Village [formerly Tanglin SEZ] Pattengere/Mylasandra Villages, Karnataka IT/ITeS

HCL Technologies Ltd. Bangalore Karnataka IT/ITeS

Pritech park Sez (Primal Projects Ltd) Bangalore Karnataka IT/ITeS

Bagmane SEZ Bangalore Karnataka IT/ITeS

Gopalan Enterprises Pvt. Ltd (Global Axis-hoodi) Bangalore Karnataka IT/ITeS

Karle Projects Bangalore Karnataka IT/ITeS

Mangalore Special Economic Zone Bangalore Karnataka Multi product

Quest special Economic Zone Belgaum district, KarnatakaPrecision engineering

Products

Kiadb Pharmaceutic Al Special Economic Zone Karnataka Pharma

Kiadb SEZ Hassan – Textiles Hasan, Karnataka Textile

Kiadb food Processing Special Economic Zone Samudravalli, Sankalapura Food processing

Larsen and Toubro SEZKIADB Industrial Area, Taluka Hebbel, Hootagally,

District, Mysore, KarnatakaIT/ITES

Some of the operational SEZs in Karnataka


3737DECEMBER 2016






M/s. Biocon Ltd Bengaluru Biotechnology

Karnataka Industrial Areas Development Board Mangalore IT/ITeS

Infosys Technologies Limited Dakshina Kannada IT/ITeS

Karnataka Industrial Areas Development Board Shimoga Engineering & related industries

Karnataka Industrial Areas Development Board Hassan Food processing and related services

Karnataka Biotechnology and Information Technology Services Bengaluru Biotechnology

Suzlon Infrastructure LtdNear Mangalore

Port

Port-based for hi-tech engineering products

and related services

Karnataka Industrial Areas Development Board Hassan Pharmaceuticals

Mangalore SEZ Limited Dakshin Kannada Petrochemicals and petroleum

Quest Machining and Manufacturing Pvt Ltd Belgaum Auto, aerospace and industrial engineering

High Street Developers Private Limited Mandya IT/ITeS

Opto Infrastructure Limited Hassan Electronic hardware & software/IT/ITeS

Some of the SEZs with formal approvals

3838DECEMBER 2016

Source: Economic Survey of Karnataka 2015-16

Census 2011


SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)


The state has a literacy rate of 75.6 per cent, the male literacy

rate is 82.8 per cent and the female literacy rate is 68.1 per cent.

In terms of the number of universities, Karnataka ranks fifth

among all Indian states and union territories, with 44 universities.

Of these, 24 are state public universities and 11 are private

deemed universities.

The state has 4,519 pre-university colleges to impart general

education. There are more than 1 million students in the pre-

university colleges.

There are 293 polytechnics and 206 engineering colleges to

provide technical education in the state.

For the development of basic facilities such as – laboratory,

library, new buildings, toilets, drinking water facility in government

schools and colleges, an amount worth US$ 18.25 million would

be provided.

Under Shikshakara Shikshana scheme, DSERT, DIETs and CTE

would be upgraded. Under this scheme, Shaikshanika Adhalath

and TESS education centers would be opened in the offices of

BEOs, DIETs, DDPIs and CTEs in the state.

Literacy rates (%)

Literacy rate 75.6

Male literacy 82.5

Female literacy 68.1

Educational infrastructure (No) 2015-16

Institute type Number Enrolments

Medical colleges 50 6,245

Ayurvedic colleges 56 2,843

Homoeopathic

colleges11 856

Unani colleges 5 201

Naturopathy &

Yogic Sciences

(BNYS)

4 172

Dental colleges 38 2,700

Pharmacy colleges 61 4,784

Nursing colleges 287 12,725

3939DECEMBER 2016

Karnataka education statistics (2015-16)

Number of schools

Lower primary: 26,118

Higher primary: 34,795

Secondary schools:

15,140

School dropout rate

(in %)

Lower primary: 2.37

Higher primary: 2.54

Pupil-teacher ratio

Average: 23.33:1

Aided schools: 42.05:1

Unaided schools: 30.33:1

As per economic survey 2015-16, the state participation in

primary education is significant as 82.91 per cent of the

lower primary and 64.51 per cent of the higher primary

schools are managed by Department of Education.

In 2015, key MoUs were signed by the government to

attract US$ 272.3 million worth of investments for higher

education and announced to set up a new IIT in Karnataka.

In December 2016, Karnataka State Education Policy was

enacted to phase out single-discipline universities and

Kannada University, teaching subjects such as political

science, folklore, etc. With the implementation of the policy,

such universities would adopt broader-based education

policy in the next few years.

Karnataka is home to several premier institutions like :

Indian Statistical Institute.

Indian Institute of Science.

Indian Institute of Management.

National Law School of India University.

Institute for Social and Economic Change.

University of Agricultural Sciences, Bengaluru.

Kannada University, Hampi.


SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)



4040DECEMBER 2016

Source: Economic Survey of Karnataka 2015-16,

Ministry of Health & Family Welfare

Sample Registration System (SRS) Bulletin Sep, 2014 , 1Per thousand persons,2Per thousand live births,

Three-tier health infrastructure comprising primary health centres,

health units, community health centres and sub-centres is available

in the state.

The policy of the Government is to establish one primary health

centre for every 30,000 inhabitants, one dispensary for every

15,000–20,000 inhabitants and one sub-centre for every 5,000

inhabitants.

A total of 108 ambulance services have been availed by around

60,693 people in the state during 2015-16. Moreover, the state

government also provided 30 bike ambulance services in urban

areas.

As per budget 2016-17, implementation of “Indira Suraksha” scheme

would be initiated in the state during 2016-17, to offer integrated

healthcare services to the families of those farmers who have

committed suicide.

As of November 2015, the state has 12,481 active health institutions

out of total 12,750 health institutions in the state.

Under the assistance of National Health Mission, at a cost of US$

8.09 million, trauma centres will be established across 5 places,

under the scheme of Aapathbandhava for offering emergency

treatment to highway accident victims.


SOCIAL INFRASTRUCTURE – HEALTH... (1/2)


Health indicators (2015)

Beds per 100,000 population 99

Birth rate1

18.3

Death rate1

7.0

Infant mortality rate2

31

Life expectancy at birth (years)

Male (2015) 63.6

Female (2015) 67.1

No of institutionsTotal Facilities

(As of November, 2015)

Subcenters 9,416

Community health

centres317

Primary health centres 2,437

Sub district hospital 539

District hospital 41

Total institutions 12,750

4141DECEMBER 2016

Source: Economic Survey of Karnataka 2015-16,

Ministry of Health & Family Welfare

Sample Registration System (SRS) Bulletin Sep, 2014 , 1Per thousand persons,2Per thousand live births,

Various other programmes to be included under the National Health Mission during 2016-17 include:

Establishment of oral cancer detection programme across the state’s districts at an allocated amount of US$ 0.25 million.

Establishment of a 25 bed special dialysis unit in Bengaluru’s K.C General Hospital at an estimated cost of US$ 0.68

million.

Extension of mobile health service units to villages with no transport and hospital facility.

Under the “Free Laboratory Scheme”, establishment of free diagnostic centres in government hospitals for treating the ill

patients.


SOCIAL INFRASTRUCTURE – HEALTH ... (2/2)


The state government is planning to construct District Ayush Integrated Hospitals having a capacity of 50 beds in Davangere and

Chikkaballapura and 10 beds in Chincholi, T. Narsipur and Dandeli, at an estimated cost of US$ 0.91 million,.

The state government is also planning to establish district hospitals with an investment of US$ 9.16 million in the state.


CULTURAL INFRASTRUCTURE


There are several sports complexes in Bengaluru, Mysore, Mangalore and other cities. Cricket, hockey and football are the major

sports, although other games are also popular. The main sports arenas are the M. Chinnaswamy Stadium and the Sree Kanteerava

Stadium in Bengaluru, Chamundi Vihar Stadium in Mysore and the Mangala Stadium in Mangalore. The Bengaluru Golf Course

and the Karnataka Golf Association are well-known golf courses in the state.

Karnataka is also home to numerous convention centres used for exhibitions, both indoor and outdoor, such as Palace Grounds

and the Bengaluru International Exhibition Centre.

Under the Rural Tourism Project, Anegundi, Kokkare Bellur, Attivari Bird Sanctuary, Gokarna and Kodagu have been developed.

Schemes are being prepared to develop rural tourism at other places also to showcase the rural life, art and culture and heritage.

Ranga Shankara and Karnataka Chitrakala Parishath form the cultural nexus of Bengaluru and are the performing spaces for

dance, music and theatre artists. An international mega convention centre, with a seating capacity of 6,000, is being planned near

the Bengaluru International Airport.

During 2015-16, the state government finished the construction of swimming pools across Hanagal, Mudubidire and Harihara and is

planning to complete swimming pool construction at Sagar during 2016-17. The government has also decided to develop

playgrounds equipped with volleyball, kho-kho, throwball and kabaddi courts across selected villages in association with

Panchayath Raj and Rural Development departments.

Further, the monuments of Srirangapatna and Hoysalas along with the monuments and forts of Deccan Sultanate have been

registered in the provisional list of World Heritage sites during 2015-16. Moreover, as per the budget 2016-17, the International

Museum of Konkani Culture would be established in Mangaluru during 2016-17, at an estimated cost of US$ 0.38 million. Similarly,

with US$ 0.15 million, the state government is aiming to set up the museums at Bagalkot and Bidar.

A grant worth US$ 0.30 million will be extended to Karnataka Janapada Parishat and an amount of US$ 3.81 million will be given to

Gadinadu Abhivrudhi Pradhikara by the state government during 2016-17.


SMART CITIES


Source: Census 2011 & TechSci Research

Mangaluru

Devengere

Hubali-Dharwad

Badami

Belagavi

ShivamogaTumakuru

Population, area & literacy rate of identified smart cities in Karnataka

Cities Population Area (sq km) Literacy rate

Mangaluru 774,785 184.45 94.03%

Belagavi 488,292 94 78%

Shivamogga 322,505 70.1 88.02%

Hubli-Dharwad 943,788 200 86.79%

Tumakuru 2,678,980 10,597 75.14%

Davanegere 434,971 72 84.90%

As of March 2016, announcements have

been made to setup six cities of Karnataka as

smart cities. As per the budget 2016-17,

Davanagere and Belgaum have been

selected under the initial stage of Smart City

Abhiyan.

During 2015-16, 27 cities were selected

under the central government’s Atal Mission

for Rejuvenation and Urban Transformation

Scheme (AMRUT). The state government has

proposed various schemes under AMRUT as

per the budget 2016-17.

4444DECEMBER 2016

The natural resources, policy incentives and

infrastructure in the state favour investments in the

IT/ITeS, biotechnology, engineering, electronics,

automotive, textiles, agri- and food-processing sectors.

Karnataka’s favourable policies have encouraged

industries to set up their R&D centres in the state.

Bengaluru has about 401 R&D centres, the most in

India.

Karnataka is making significant investments in industrial

infrastructure, such as setting up industrial clusters and

SEZs and PPP projects to provide an impetus to further

industrial development.

During 2015-16, government land of 11,994 acres was

passed to the Karnataka Industrial Areas Development

Board. The formation of Invest Karnataka 2016 in the

state is expected to offer US$ 26.73 million for the

enhancement of infrastructure facilities among existing

areas of industrialisation. Further, it is also projected to

set up a new cashew technology centre in the district of

Uttar Kannada of the state.


KEY INDUSTRIES


Source: Directorate of Industries and Commerce,

Economic Survey of Karnataka, 2015-16

Key industries in Karnataka

• IT and ITeS• Agro and food processing

(floriculture)

• Biotechnology • Aerospace

• Engineering • Animation

• Electronics and telecom • Electronic hardware

• Automotive • Tourism

• Textiles and apparel • Renewable energy

Total number of micro, small and medium enterprises in

Karnataka

Year MSME units EmploymentEmployment

per unit

2012-13 24,206 155,551 6.43

2013-14 25,966 167,347 6.44

2014-15 28,742 175,469 6.10

2015-16 (up to

December 2015)19,208 146,225 7.61

4545DECEMBER 2016

Karnataka has emerged as an information technology (IT) hub of India.

Bengaluru is the fourth largest technological cluster in the world after

Silicon Valley, Boston and London.

About 50 per cent of the world's SEI CMM Level 5 certified companies

are located in Bengaluru.

The state is India’s largest software exporter, with electronics and

computer software exports totalling to US$ 10.38 billion during 2015-

16(1). The state accounted for about 38 per cent share in India’s

electronic and software exports during 2015-16(1).

Karnataka has 47 IT/ITeS SEZs and dedicated IT investment regions.

There are 3,500 IT companies in the state. The state houses 550,000

IT professionals or 1/3rd of the total IT professionals in the country.

At least 400 Fortune 500 companies have outsourcing operations in

Karnataka. As of September 2015, the total enrolments of people in the

sector was recorded to be 0.446 million.

The state government has formulated a new Karnataka Startup Policy

for assessing the progress of startup companies during 2015-16.

As per the state budget 2016-17, the state government will set up a

technology incubation centre during 2016-17 in Doddaballapura town

for the endorsement of startups related to technology in association

with Texas University.

During 2016-17, the state government aims to establish 10 new

incubators in the state’s graduate and professional institutes, under the

network of New Age Incubation.


KEY INDUSTRIES – IT AND IT-ENABLED SERVICES … (1/2)

Some of the key players

• Wipro Technologies

• Infosys

• Genpact

• Accenture


Electronics and software exports from Karnataka

(US$ billion)

Source: Visvesvaraya Trade Promotion Centre; ’Note: 2015-16(1) : till September 2015

23.0928.19 28.72 29.53 32.19

10.38

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

20

15

-1

6⁽¹⁾

CAGR:

8.66 %

The state has earmarked US$ 11.20 million for the creation

of the biggest eco-system for start-ups. The incubation

centre will be set up in association with Karnataka State

Electronics Development Corporation (KEONICS) and will

have all necessary infrastructure for start-ups.

According to India Hiring Intent Survey 2017, there will be 5-

10% increase in hiring by BPO/KPO and ITeS companies in

the state in the coming years.


KEY INDUSTRIES – IT AND IT-ENABLED SERVICES … (2/2)


Wipro Ltd

Infosys Technologies Ltd

Genpact

Accenture

• Wipro Ltd was established in 1945 and recorded revenues of US$ 7.82 billion during 2015-16. The

company has presence in areas such as IT services, product engineering, technology infrastructure

services, BPO and other consulting solutions. The company provides services such as application

development, deployment and maintenance, business intelligence and customer relationship

management.

• Based in Bengaluru, the company has 72 plus global delivery centres and 50 plus industry-specific

centres of excellence in more than 54 countries. In September 2009, the company launched its centre

of excellence at its Electronic City campus to work with other leading IT firms for developing

innovative IT solutions.

• Infosys Technologies Ltd was set up in 1981 and posted revenues of US$ 9.53 billion in 2015-16. The

company operates in areas such as IT consulting, modular global sourcing, process re-engineering

and BPO services. Infosys has 73 offices and 94 development centres in the US, India, China,

Australia, Japan, the UK, Germany, France and many other countries and has marketing and

technological alliances with companies such as IBM, HP, Microsoft and Oracle. The company has

operations at multiple locations in Bengaluru, Mangalore and Mysore.

• Genpact was set up in 1997 in India. Formerly known as GE Capital International Services, the

company’s net revenues in 2014-15 stood at US$ 2.27 billion. The company provides a wide range of

business process, technology and knowledge services including finance and accounting, collections

and customer relations, insurance, procurement and supply chain, analytics, software and IT

infrastructure. Genpact employs around 60,200 employees. The company has one office in Bengaluru

in Karnataka.

• Accenture is a global management consulting, technology services and outsourcing company with

approximately 275,000 people serving clients in more than 120 countries. In 2015-16, Accenture

generated revenues of US$ 8.97 billion. The company has one consulting office and seven delivery

centres in Bengaluru.


KEY INDUSTRIES – BIOTECHNOLOGY … (1/2)



Karnataka has played a key role in India’s emergence as a

significant player in the global biotechnology industry. Karnataka

is home to nearly 60.0 per cent of the country’s biotech units.

The state consists of over 300 Biotech companies and has more

than 6,800 scientists involved in biotech research.

Premier life sciences institutions such as Indian Institute of

Science, National Centre for Biological Science and Jawaharlal

Nehru Centre for Advanced Scientific Research are present in the

state.

Sector-focused SEZs have been set up in Mysore, Mangalore,

Hubli-Dharwar, Belgaum, Shimoga, Gulbarga, Kolar & Mandya.

Twelve biotechnology finishing schools are scheduled for

development under the Millennium Biotech Policy.

An 86-acre biotechnology park, Bengaluru Helix, comprising the

52-acre Alexandria Knowledge Park in Bengaluru is currently

under development.

More than 60 per cent of the biotechnology companies in India

have a base in Bangalore and the state drives 50 per cent of the

total revenues in India’s biotechnology sector.


• Biocon

• AstraZeneca India

• Jubilant Life Sciences Ltd

• GlaxoSmithKline Pharmaceuticals Ltd

India’s biotechnology industry is expected to reach US$

100 billion by 2025, with Bangalore forming a significant

part of it.

As per state budget 2016-17, the state government

established Bengaluru Bio-innovation Centre with an

investment of US$ 8.55 million for enabling MSMEs to

access high-end laboratory and instrumentation facilities.

Sub-regional science centres at Vijayapura, Tumakuru,

Davangere, Udupi, Chikkodi, Chittapur and

Chikkamagalur would be established in 2015-16 with an

investment of US$ 0.66 million.

The state government announced its plans to introduce

100% reservation for Kannadigas in all private sector

industries, including biotechnology firms.


KEY INDUSTRIES – BIOTECHNOLOGY … (2/2)


Biocon

AstraZeneca India

Jubilant Life

Sciences Ltd

GlaxoSmithKline

Pharmaceuticals Ltd

• Biocon India was incorporated in 1978 as a joint venture between Biocon Biochemicals Ltd of

Ireland and an Indian entrepreneur, Kiran Mazumdar-Shaw. The company is among the leaders

in biopharmaceuticals and bioservices. Biocon has its corporate headquarter in Bengaluru. In

2015-16, the company recorded revenues of about US$ 545.37 million.

• AstraZeneca India was established in 1979. The company is involved in the areas of

manufacturing/marketing of bulk drug chemicals, liquid formulations, tablets and capsules,

injectibles and ointments for various disease segments such as cardiovascular, respiratory and

maternal healthcare.

• In 2014, the company’s manufacturing plant is located at Yelhanka and R&D centre is located in

Bengaluru.

• Jubilant Life Sciences Limited (formerly Jubilant Organosys Ltd) is an integrated

pharmaceuticals and life sciences company. The company is the largest Custom Research and

Manufacturing Services (CRAMS) company and provides leading drug discovery &

development solutions outside India.

• The company’s revenue was about US$ 229.30 million during the last quarter of FY 2016.

Jubilant has a manufacturing facility in Nanjangud, with around 625 employees.

• GlaxoSmithKline Pharmaceuticals Ltd was established in 1924 and is one of the oldest

pharmaceutical companies in India.

• At the end of third quarter of 2015-16, the company recorded a revenue of US$ 112.37 million.

• GSK India product portfolio includes prescription medicines and vaccines. The company has a

clinical development centre in Bengaluru.


Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka,1upto September 2015

KEY INDUSTRIES – ENGINEERING … (1/2)


The engineering industry in Karnataka has positive prospects,

given its performance.

Exports of engineering products have increased from US$

1,605 million in 2010-11 to US$ 2,634.43 million in 2015-16,

The engineering segment is the fastest growing sector of the

state, which grew at a CAGR of 21% between 2010-11 and

2015-16. The state is exporting engineering products to

Germany, China, South Korea, Brazil, USA, Malaysia,

Thailand, South Africa and Singapore. A majority of the

exporters in state are based in Bengaluru, Hubli, Mysore,

Belgaum, Mangalore, and Shimoga.

Exports include machine tools, industrial machinery, cutting

tools, castings, automotive components, electrodes, welding

equipment, construction and earthmoving equipment, and

helicopter spares.

A 300-acre SEZ has been created in Belgaum to develop a

precision engineering and manufacturing supply chain

ecosystem, which would be a great driver for manufacturing

industries. Bharat Earth Movers Limited, Hindustan Machine

Tools Limited and Bharat Heavy Electricals Limited are among

the leading companies in this sector in the state.


• Bharat Earth Movers Limited (BEML)

• Hindustan Machine Tools Limited (HMT)

• Bharat Heavy Electricals Limited (BHEL)

• Saint-Gobain India

Engineering products exports (US$ billion)

1.61 1.72

2.31

2.983.48

2.63

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

2015

-16⁽¹⁾

CAGR:

10.31%


KEY INDUSTRIES – ENGINEERING … (2/2)


BEML Limited

HMT Ltd

BHEL

Saint-Gobain India

• BEML Limited (formerly Bharat Earth Movers Limited) was established in 1964. BEML

manufactures a wide range of earth moving and other heavy industrial equipment for the mining

and civil engineering industries.

• BEML has a registered office in Bengaluru and units in Kolar Gold Fields, Mysore and

Bengaluru. During the third quarter of 2015-16, the company recorded revenues of US$ 116.64

million.

• HMT was established in 1953. The company manufactures various types of machine tools

including watches, tractors, printing machinery, metal forming presses, die casting & plastic

processing machinery, CNC systems & bearings.

• During the third quarter of 2015-16, the company earned revenues of US$ 1.67 million. HMT

has a manufacturing plant in Bengaluru.

• Bharat Heavy Electricals Ltd (BHEL) is the largest engineering and manufacturing enterprise in

India in the energy-related/infrastructure sector. The company has 16 manufacturing divisions,

two repair units, four regional offices, eight service centres, eight overseas offices and 15

regional centres.

• BHEL has an electronics division at Bengaluru. The company recorded revenues of US$ 813.57

million during the third quarter of 2015-16.

• Saint-Gobain India was established in India in 1996. The group comprises eight manufacturing

companies in India for various products ranging from glass to engineering products.

• In the second quarter of 2015, the company recorded revenues of US$ 6.51 million. The

company has a manufacturing plant in Bengaluru.


KEY INDUSTRIES – TELECOMMUNICATIONS AND ELECTRONICS … (1/2)


Source: Department of Industries and Commerce

Karnataka is a leading state of the country in electronics

and telecommunication.

The state has high-end research and development

organisations such as Indian Institute of Science, Cosmic

Industrial Laboratories Ltd, Indian Space Research

Organisation (ISRO), CSIR Centre for Mathematical

Modelling and Computer Simulation (CMMACS), National

Aerospace Laboratories, Centre for Soft Matter Research

and John F. Welch Technology Centre.

Karnataka has excellent telecom infrastructure with 140 of

170 towns connected by Optic Fibre Cables (OFC) network.

Bengaluru district is the major hub of the electronics and

telecommunications industries. The other districts of

Hassan, Tumkur, Mysore, Mangalore and Shimoga are the

new destinations for promotion of electronics and hardware

industries.

The state houses global giants such as Sanyo, AT&T,

Siemens, GE, Motorola, Sony and Alcatel as well as

national heavyweights such as BPL Limited and Indian

Telephone Industries Limited.


• Bharat Electronics Ltd

• Nokia

• Siemens

• Philips Electronics India Ltd

In 2015, the state government of Karnataka has announced plans

to set up an Information Technology Investment Region (ITIR) near

the Kempegowda International Airport (KIA) and proposed an

investment of US$ 2.35 billion. The construction will be completed

in two phases and the Karnataka Industrial Areas Development

Board (KIADB) is in the process of acquiring 2,072 acres land for

the first phase. The ITIR is first of its kind and is projected to be

developed over next 20 years. The first phase is expected to be

completed by 2020 while the second phase will be developed in

following 15 years.

The start-ups warehouse set up by the state government in

association with Nasscom has attracted 170 start-ups. However,

during 2015-16, the functioning of second start-up warehouse in

collaboration with NASSCOM with was initiated in the state.

In order to provide venture capital to semiconductor companies,

the state government has formed Karnataka Semiconductor

Venture Fund with a total fund size of US$ 15.27 million.


KEY INDUSTRIES – TELECOMMUNICATIONS AND ELECTRONICS … (2/2)


Bharat Electronics Ltd

Nokia

Siemens

Philips Electronics

India Ltd

• Bharat Electronics Limited (BEL) was incorporated in 1954 and is a multi-product, multi-unit,

multi-technology company. Products manufactured by BEL are mainly categorised as

systems/turnkey solutions, defence and non-defence products.

• The company has a manufacturing unit in Bengaluru and achieved revenues of US$ 231.78

million during the third quarter ending December 2015.

• Nokia is among the world leaders in mobile technology. The company started its India

operations in 1995. India holds the distinction of being the second largest market for the

company globally.

• The company has an R&D facility and a design studio in Bengaluru.

• Siemens set up operations in India in 1957. The Siemens Group in India is a unique player in

the field of electrical and electronics engineering. The Group employs approximately 10,933

people and has 23 manufacturing facilities in India. Siemens has several offices in Bengaluru.

During the second quarter ending March 2016, the company recorded revenues of US$ 425.25

million

• Philips has been operating in India for more than 75 years. The company is a leader in

consumer electronics, healthcare and lighting systems. Philips employs more than 4,500 people

in India.

• The company has an R&D facility – Philips Innovation Campus – in Bengaluru.


KEY INDUSTRIES – AUTOMOTIVE … (1/2)



Karnataka has a vibrant auto industry with investments of

around US$ 713 million and annual revenues of US$ 604

million.

The state is the fourth largest state in India in terms of

automotive production. The main locations for automobile

industries are Bengaluru, Ramanagara, Kolar, Shimoga,

Dharwad and Belgaum.

General Motors Technical Centre, located in Bengaluru, is

actively involved in research, design, analysis and

development of vehicles and power trains for foreign

destinations as well as the domestic market.

The state has three auto clusters, one industrial valve

cluster and one auto component cluster. Two manufacturing

hubs are coming up in Narsapur and Vemagal Industrial

Areas in Kolar District.

The Government is in the process of announcing a

Dedicated Automobile Policy.

Automotive industry of Karnataka grew at a CAGR of 15 per

cent during 2009 to 2014. The state is considered to be the

fourth largest in manufacturing and developing automobiles

in the country. On the back of this, the state contributes

8.5% to the overall automobile sector of the country.


• Toyota Kirloskar

• Volvo India

• TVS Motor Company

• Delphi Automotive Systems Pvt Ltd

In 2015-16 (up to December 2015), total transport and non-

transport vehicles recorded in Karnataka were 15.86

thousand, out of which, transport vehicles were 1.49

thousand whereas non-transport vehicles were 14.37

thousand.

As per the final draft of Karnataka Industrial Policy 2014-19,

the state will study the feasibility of setting up major auto

parks at Dharwad, Kolar and Bidadi in Ramanagara district;

and smaller auto parks in Belgaum, Shimoga, Mysore and

Gulbarga.


KEY INDUSTRIES – AUTOMOTIVE … (2/2)


Toyota Kirloskar

Volvo India

TVS Motor Company

Delphi Automotive

Systems Pvt Ltd

• Toyota Kirloskar is a joint venture between Kirloskar group and Toyota Motor Corporation.

• The company has manufacturing facilities at Bidadi.

• Volvo India has a state-of-the-art bus manufacturing unit near Bengaluru. Globally, the Volvo

Group has about 115,000 employees, production facilities in 19 countries, and sales activities in

more than 190 countries.

• The company has increased its capacity to around 1,500-1,700 buses per annum in 2013-14

from 1,100 buses per annum earlier.

• Volvo India plans to invest US$ 115.6 billion to set up a truck and bus manufacturing facility in

Malur, Kolar.

• TVS Motor Company is one of the largest two-wheeler manufacturers in India. The company is

the flagship company of the TVS Group. TVS Motor has four manufacturing plants across India

including Mysore.

• The company achieved a turnover of US$ 1.75 billion during 2015-16.

• Delphi India was incorporated in 1995 as a wholly owned subsidiary of Delphi. The company is

a leading global supplier of electronics and technologies for automotive, commercial vehicles

and other market segments.

• Delphi India has a technical centre in Bengaluru, which is the largest technical centre outside

the US.

5555DECEMBER 2016

Karnataka is one of the leading producers of cotton, silk and wool,

which are the key raw materials required for textile manufacturing

units. The production of cotton during 2015-16 was recorded to be

14.04 lakh bales. The state produces 33.59% of India’s silk. Raw

silk and cocoon production in the state was recorded at 7.38

thousand MT and 53 thousand MT, respectively during April-

December 2015.

Karnataka is a major apparel sourcing destination for the global

market. The state accounts for 20 per cent of the national garment

production. During 2015-16, the state contributed around 65%,

12% and 6% of silk, wool and cotton production, respectively to the

country. Moreover, the state recorded 144 skill development

centres and 168 private training centres during 2015-16. There are

approximately 0.38 million manufacturing units engaged in the

textiles and garments sector at the organised and unorganised

level. Under the New Textile Policy 2013-18, the state government

is planning to invest US$ 1,650 million in the textile sector. The

Textile Policy offers various incentives for investments in the textile

sector; these include credit-linked capital subsidy, entry tax

reimbursement and power subsidy.

The Textile Policy offers various incentives for investments in the

textile sector; these include credit linked capital subsidy, entry tax

reimbursement and power subsidy.


KEY INDUSTRIES – TEXTILES AND APPAREL … (1/4)


Source: Karnataka Economic Survey 2015-16, Directorate of

Industries and Commerce


• Gokaldas Exports Limited

• Karnataka Silk Industries Corporation (KSIC)

• Himatsingka Seide

• Shahi Exports Private Limited

As of July 2016, the state had one operational SEZ

(KIADB SEZ Hassan - Textiles) for the textile sector at

Hasan, Karnataka.

During 2015-16 (up to December 2015), the state

produced 38.68 million metres of handloom textiles, as

compared to 41.29 million metres in 2014-15. Moreover,

78 new industrial units were also registered in the state

from April to December 2015.

Karnataka has an apparel park at Dodaballapur near

Bengaluru and other mega textile parks in the other parts

of the state.

During 2015-16, the District Sector State Plan Funds of

US$ 496.48 thousand were allocated to handlooms &

textiles sector of the state, as compared to US$ 443.01

thousand in 2014-15.




Source: Economic Survey of Karnataka, 2015-16,

Department of Industries, Handloom, Government of Karnataka

0.270

0.411

0.254

0.014

2012-13 2013-14 2014-15 2015-16

Financial assistance to handloom weavers (in US$ million)




Production and employment in handloom and power-loom industries in Karnataka

Description Units 2013-14 2012-13 2014-152015-16 (up to December

2015)

Handloom production Million metres 46.09 47.63 43.58 38.68

Handloom employment Lakh 0.82 1.12 0.85 1.06

Power loom production Million metres 328.99 353.59 304.02 290.35

Power loom employment Lakh 2.56 2.60 2.96 4.42

Source: Ministry of Textiles

Handloom weavers and looms in Karnataka

Description Rural Urban Total

Total weaver households 33,854 3,826 37,680

Weaver population 121,688 12,650 134,338

Weaving workforce 69,686 7,163 76,849

Looms 35,662 4,826 40,486

Power-loom weavers and looms in Karnataka

No. of weaver

householdsNo. of weavers No. of looms

30,988 127,535 88,566

Spun yarn production (‘000 kg)

2013-14 37,750

2014-15 34,269

2015-16 (up to September 2015) 15,580




Gokaldas Exports Ltd

KSIC

Himatsingka Seide

Shahi Exports Pvt Ltd

• Gokaldas is one of the largest garment exporters in the country. The company commenced

operations in 1979. During the third quarter of 2015-16, the company generated revenues of

US$ 37.33 million.

• Headquartered in Bengaluru, the company has 30 factories across India. Gokaldas employs

around 28,000 people and has a manufacturing capacity of 2.45 million garments per month as

of 2014-15.

• Karnataka Silk Industries Corporation (KSIC) is a Government of Karnataka enterprise and is a

leading manufacturer of silk.

• The company has two modern factories in T. Narasipura & Mysore, which are engaged in

manufacturing silk goods from raw silk yarn to silk fabrics.

• Himatsingka Seide, incorporated in 1985, is a Bengaluru-based company dealing in natural silk

fabric. In 2015-16, the company generated revenue of US$ 288.24 million.

• The company’s focus area is textile designing and manufacturing. Himatsingka Seide has a

spinning division as well as a weaving division. The company’s brand atmosphere is India’s first

luxury home textile brand, with an exclusive collection of more than 2,500 products and an

installed capacity of 25 million metres per annum.

• Shahi Exports is among the top home furnishing exporters in the country. The company began

operations in 1974 in Delhi and started manufacturing in Bengaluru in 1988. Shahi Exports has

manufacturing facilities in Delhi, Bengaluru, Salem and Tirupur


KEY INDUSTRIES – AGRO AND FOOD PROCESSING … (1/3)


Karnataka, with a good agricultural base including various food crops, offers immense scope for the development of food

processing industries. Karnataka is the largest producer of coffee and cocoa in the country.

The state accounts for around 71.3% of the country’s total coffee production. Coffee production of the state increased from

233,230 MT in 2014-15 to 253,340 MT in 2015-16.

During 2015-16, the state government implemented the scheme - “Krishi Bhagya” across 129 talukas of 25 districts. Moreover,

under the program of Bhoochethana-2, which is being executed across 66.88 lakh hectares of area, a total of about 11 lakh

farmers have been profited.

As per budget 2016-17, the state government decided to provide incentives for endorsement of agro-processing units in the state

for which the government will be allocating a total amount of US$ 3.81 million.

Karnataka’s coffee production

Location Elevation

(m MSL)

Rainfall

(mm)

Main coffee

types

Total area under

coffee (hectares)

Average production

(MT)Main intercrops

Bababudangiris 1,000-1,500 1,750-2,200 Arabica 15,000 10,500Pepper, cardamom,

arecanut

Chikmagalur 700-1,200 1,000-4,500Arabica,

Robusta

Arabica - 37,000

Robusta - 23,000

Arabica - 29,000

Robusta - 30,000

Pepper, cardamom,

arecanut, orange, vanilla

Coorg 750-1,100 1,000-2,500Arabica,

Robusta

Arabica - 26,000

Robusta - 56,000

Arabica - 24,000

Robusta - 69,000

Pepper, cardamom, orange,

banana, arecanut

Manjarabad 900-1,100 1,000-2,500Arabica,

Robusta

Arabica - 31,700

Robusta - 9,400

Arabica - 21,000

Robusta - 9,500

Pepper, cardamom, orange,

arecanut, banana

Source: Coffee Board, Government of India




As per budget 2016-17, the state government has also decided

to provide ‘agri start-ups’ with an amount of US$ 1.52 million

setting up the new industries by deploying advanced techniques.

The state is one of the leading producer of flowers, spices, fruits

and vegetables. Government of Karnataka had approved the

establishment of food parks in six districts: Bengaluru rural,

Tumkur, Shimoga, Davangere, Bijapur and Belgaum. These

parks are in advanced stages of implementation. Most of the civil

infrastructure work has been completed in Malur, Hiriyur,

Bagalkot and Jewargi food parks, which had been approved by

Ministry of Food Processing Industries, Government of India.

The export of agriculture and processed food in the state grew at

a CAGR of 22.96 per cent between 2010-11 and 2015-16. The

export value has increased from US$ 146.9 million in 2010-11 to

US$ 412.92 million in 2015-16.

Source: Economic Survey of Karnataka 2015-16, Coffee Board


Coffee exports from Karnataka (US$ million)

325 342 300

479

659 651 597

825

256

20

07-0

8

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

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2015-1

6⁽¹⁾


• Hindustan Unilever Limited

• Nestle India

• Britannia Industries Limited

• United Breweries Group

CAGR:

14.23 %

DistrictFinal estimate of coffee production (2015-16)

in MT

Arabica Robusta Total

Chikmagalur 42,425 41,385 83,810

Kodagu 21,085 116,620 137,705

Hassan 18,950 12,875 31,825

Sub total 82,460 170,880 253,340




Hindustan Unilever Ltd

Nestle India

Britannia Industries Ltd

United Breweries Ltd

• Hindustan Unilever Limited (HUL) is India's largest fast-moving consumer goods (FMCG)

company, with leadership in home & personal care products and foods & beverages. The

company recorded revenues of US$ 4.2 billion during 2015-16. HUL employs more than 16,000

people nationwide. In the second quarter of 2015, the company recorded revenues of US$ 1.3

billion.

• The company has a manufacturing plant and an R&D centre at Bengaluru.

• Nestle has been in India for almost a century, with seven production facilities across the

country, including one at Nanjangud, Karnataka. The company produces chocolates and

confectionaries, prepared dishes and cooking aids, beverages and milk products and nutritional

supplements. During the first quarter of 2016, ending in March 2016, the company recorded

revenues of US$ 351.74 million.

• Britannia is a leading food processing company in India. The company manufactures food

products such as biscuits, cheese and bread. Based in Bengaluru, the company recorded

revenues of US$ 1.32 billion in 2015-16.

• United Breweries Limited (UBL) is a flagship company of the UB Group. The company is also

referred to as the beer division of the UB Group and is based in Bengaluru. UBL recorded a net

turnover of US$ 778.41 million in 2014-15. In the second quarter of 2015, the company

recorded revenues of US$ 187.89 million.

• The company has around 2,489 employees and manufactures products primarily under the

Kingfisher, London Pilsner and UB Premium Ice brands.


KEY INDUSTRIES – AEROSPACE … (1/2)


Source: Global Investors Meet 2012, MRO India, NRI

Forum Karnataka, Karnataka Aerospace Policy 2012

Karnataka is known as the pioneer in the Indian aerospace

industry after the establishment of Hindustan Aeronautics Limited

(HAL) in Bangalore in 1940. Karnataka produces more than a

quarter of India’s aircrafts and spacecrafts.

Around 984 acres of land is earmarked for an exclusive industrial

area and sector-specific SEZ for aerospace industries near

Bengaluru International Airport. On February 2015, the

aerospace park started its operations.

India’s first aerospace SEZ of 300 acres is operational at

Belgaum.

Karnataka is the first state which announced the aerospace

policy in the country. Karnataka Aerospace Policy has identified

an investment potential of US$ 12.5 billion in this sector during

2013–23 and plans to develop aerospace clusters in different

regions of the state.

Companies such as Air India, Boeing and Jupiter Aerospace

have selected Karnataka for the development of MRO facilities.

The state government plans to develop an aerospace park

spread over 1,000 acres near the Bengaluru International Airport

(BIAL) with an investment of US$ 1.7 billion, with the intention of

attracting global and domestic players in the Indian aerospace

industry. The park is expected to be operational by 2017.


• Boeing

• Hindustan Aeronautics Limited

• Airbus Engineering Centre

• BEML Ltd

In February 2015, Rolls Royce company sought 12 acres of

land in Devanahalli Aerospace Park to ramp up their

manufacturing capabilities in the aerospace sector in addition

to the 6 acres already allotted in partnership with HAL.

The state is exporting aerospace products to US, UK,

Germany, Russia Mauritius, Malaysia, Nepal, Oman and

Ecuador. In order to boost aerospace industry in the state, the

Government of Karnataka has proposed to reduce the VAT

imposed on articles made from nickel, titanium, etc. under the

heading of HSN 7505, 7506 and 8108, from 14.5% to 5.5%

during 2016-17.

Aerospace Technology Centre (ATC) in Bengaluru would be

established under the PPP model.


KEY INDUSTRIES – AEROSPACE … (2/2)


Boeing

HAL

Airbus

BEML Ltd

• In India, Boeing is represented through its wholly owned subsidiary, Boeing International

Corporation India Private Limited (BICIPL).

• Boeing established its first R&D centre in India – the Boeing Research & Technology Centre –

in Bengaluru in 2009. The centre develops high-end technology solutions, particularly in the

areas of aero structures and avionics.

• Hindustan Aeronautics Limited (HAL) is ranked 40th in Flight International's list of the World’s

Top 100 aerospace companies in 2008.

• HAL has 19 production units and nine research and development centres in seven locations

across India; of which, eight production units and four R&D centres are located in Bengaluru.

• Airbus’ industrial cooperation with India began in 1988 when an agreement was reached with

Hindustan Aeronautics Limited (HAL) to manufacture passenger doors for the A320 aircraft.

• Specialising in high-tech aeronautical engineering, the Airbus Engineering Centre works hand-

in-hand with other Airbus engineering offices around the world, as well as with the Indian

aviation industry.

• Bharat Earth Movers Limited (BEML), a ‘Miniratna-Category-1’, plays a pivotal role and serves

India’s core sectors such as defence, rail, power, mining and infrastructure.

• BEML is involved in the manufacturing of aircraft components/assemblies and MRO activities

related to aerospace applications.

Source: Global Investors Meet 2012, KUM Karnataka, Airbus, BEML Ltd

6464DECEMBER 2016

Major suppliers to the industry such as HP, AMD, NVIDIA

and Microsoft are located in Bengaluru.

There has been a considerable increase in AVGC business

outsourcing to Bengaluru.

A great deal of content for global blockbuster animation

movies such as Life of Pi, Harry Potter, Kung Fu Panda,

Prometheus and Pirates of the Caribbean was developed in

Karnataka.

The state government is in process of establishing digital art

training centres across willing colleges, in collaboration with

Association of Bangalore Animation Industries (ABAI) for

imparting new skills to people under the program designed

by the experts of ABAI.

In 2015, the Government of Karnataka invested about US$

0.41 million for boosting the animation sector and to make

Karnataka a hub for the AVGC sector in the country.


KEY INDUSTRIES – ANIMATION … (1/2)


Source: PwC Report estimates, Karnataka AVGC Policy


• Technicolor

• TATA Elxsi

• Zynga

• DreamWorks

As per Economic Survey 2015-16, AVGC finishing

schools would be developed in the state for improving

the skill quotient of the students and enabling them to

get industry-ready.


KEY INDUSTRIES – ANIMATION … (2/2)


Technicolor

Tata ELXSI

Zynga Inc

DreamWorks

• Technicolor is a worldwide technology leader in the media and entertainment sector.

• Technicolor India offers world-class design and production services in animation and visual

effects for motion pictures and television broadcast productions.

• Technicolor has been operating in India since 2007 and employs about 1,238 people.

• Tata Elxsi is a listed company and is headquartered in Bengaluru.

• The company is a global design company and offers key services including embedded product

design, industrial design, animation & visual effects and systems integration.

• The company recorded revenues of US$ 164.25 million in 2015-16.

• Zynga Inc is the world's leading provider of social gaming services with more than 240 million

monthly active users playing its games, which include CityVille, Zynga Poker and Scramble with

Friends.

• Zynga's Bengaluru centre, started in 2010, has rapidly expanded to become the company's

second largest operation in the world after its San Francisco centre.

• DreamWorks Animation creates high-quality entertainment, including CG animated feature

films, television specials and series and live entertainment properties.

• DreamWorks Animation has been named one of the “100 Best Companies to Work For” by

FORTUNE® Magazine for four consecutive years.

• The company has theatrically released a total of 25 animated feature films, including the

franchise properties of Shrek, Madagascar, Kung Fu Panda and How to Train Your Dragon.

Source: Technicolor, TATA Elxsi, Zynga, DreamWorks


KEY INDUSTRIES – ELECTRONIC HARDWARE … (1/2)


Karnataka is among the top chip designing hubs in the

country. Around 70 per cent of chip designers in India are

found in Bengaluru city.

The state has the advantage of having low-cost

skilled/technical manpower compared with other states.

Bengaluru is a global hub for R&D activity in the software

industry, which will greatly aid the electronic hardware

industry.

The ESDM (Electronic System Design & Manufacturing)

Policy is expected to provide for development of three

ESDM innovation centres that will provide complete

infrastructure with the requisite design tools.

ESDM Policy also plans to set up seven high-class ESDM

Manufacturing Clusters (EMCs) to provide infrastructure

support including electronic manufacturing services and

component manufacturing by 2020.

As per the policy, by 2020, ESDM sector is expected to

generate turnover of US$ 400 billion, including exports to

the tune of US$ 80 billion, with an investment of US$ 100

billion.

Source: Department of Electronics and Information Technology, GoI,

Department of IT, BT and S&T, Karnataka,

ESDM Policy 2013, Karnataka


• Intel

• AMD

• Qualcomm Inc

• Nvidia

As per budget 2016-17, the state government has proposed

to establish four incubators based on technology, in phases,

across the areas of electronics systems designing &

manufacturing, IoT, Robotics, 3D printing, etc.

During 2016-17, the state government has also planned to

work in partnership with the industry as well as academic

institutions in order to establish excellence centres and

finishing schools across the sectors of electronics, IT, etc. in

Karnataka.


KEY INDUSTRIES – ELECTRONIC HARDWARE … (2/2)


Intel

AMD

Qualcomm Inc

NVIDIA

• Intel, headquartered in Santa Clara, is the world’s largest and highest valued semiconductor

chip maker based on revenue.

• The Intel India Development Centre is a critical engineering design and development centre for

key Intel products across CPUs, graphics, platforms and software with strong IT expertise and

factory automation.

• AMD India plays a significant role in the design of microprocessors, AMD’s family of Accelerated

Processing Units (APU), SoCs, graphics and media solutions.

• AMD has two design centres in India located in Hyderabad and Bengaluru.

• Qualcomm Incorporated is an America-based global semiconductor company that designs,

manufactures and markets digital wireless telecommunications products and services.

• Qualcomm India Private Limited established its India operations in 1996 and has R&D centres

in Bengaluru and Hyderabad.

• Nvidia manufactures Graphics Processing Units (GPUs) as well as System-on-a-Chip units

(SOCs) for the mobile computing market.

• Nvidia established its design centre in Bengaluru in 2005. The centre includes a state-of-the-art

facility and data centre that facilitates top-to-bottom designing of advanced graphics and digital

media processors for a wide range of platforms.

Source: Company websites

6868DECEMBER 2016

Karnataka boasts of a diverse flora and fauna and a 320-

km natural coast line, which makes it a nature tourist's

paradise. The state is ranked fourth in terms of the number

of tourist arrivals in India.

The Palace on Wheels of South India – the Golden Chariot

Train tour – has been rated by Vanity Fair, UK, as among

the top seven train journeys in the world. Karnataka has

World Heritage Sites at Hampi and Pattadakal. Good

infrastructure in the form of better road and rail connectivity

as well as improving hospitality is also aiding tourism.

The state attracted 119.86 million domestic tourists and

0.63 million international tourists in 2015. During 2005–

2015, tourist arrivals in the state increased at a CAGR of

16.9 per cent.

The sector contributes 14.8 per cent to the GSDP of

Karnataka; plans are afoot to expand to 26 per cent by

2020.

In budget 2016-17, the state government announced the

launch of new policy on tourism for the period 2015-2020

for strengthening and boosting private investments across

the tourism sector.

KEY INDUSTRIES – TOURISM ... (1/2)


Source: Socio Economic Survey 2014-15, Government of Karnataka.

Number of tourist arrivals in Karnataka (million)


During 2016-17, the state government has decided to launch

new “Kuteera” scheme for providing the tourists with basic

amenities on the national highways. The state government has

also decided to endorse the Heli and Air taxi services across

the vital tourist destinations of the state.

Further, tourist places, pertaining to Jains and Buddhists, are

also proposed to be developed by the state government during

2016-17. As per the budget 2016-17, an amount of US$ 77.45

million has been allocated to the tourism department.

25.2

36.7 38.4 37.5 33.038.5

84.194.7 98.6

118.8 120.5

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CAGR:

16.9 %


KEY INDUSTRIES – TOURISM ... (2/2)

Major attractions


Medical tourism

• Karnataka is India’s most preferred destination for advanced medical care, and is referred

to as the medical tourism hub of India.

• The state has the highest number of approved health systems, multi-specialty health

centres and alternative health therapies in India.

Eco tourism

• Karnataka represents wide variations in topography – high mountains, hills and long

coastal stretches.

• The state has five national parks, 26 wild life sanctuaries, pelicanries, heronries and

elephant camps.

Adventure tourism

• Karnataka’s geography provide a vast spectrum of diverse attractions, making it a heaven

for adventure sports and outdoor activities.

• Major attractions include white water rafting on the Kali river and aero sports at the Nandi

hills.

Source: Visvesvarya Industrial Trade Centre, Global Investors Meet 2012

7070DECEMBER 2016

During 2015-16, renewable energy was recorded at 5,105.52 MW out of the total installed capacity of 17,324.06 MW.

Therefore, it contributed a total of 29.47% into the state’s total installed power capacity.

Karnataka is endowed with high renewable energy potential such as wind, hydro, solar, tidal and geothermal energy

resources.

The renewable energy potential for the state is estimated at 30.2 GW, primarily from wind, solar, small hydro, co-generation

and biomass sectors.

The government has allotted projects of 19,284.16 MW, amounting to nearly 64 per cent of the total potential.

Through the Renewable Energy Policy, the state plans to set up renewable energy economic zones by procuring 10 per

cent of the land of SEZs and dedicating it for renewable energy.

The policy also mandates to keep aside 10.0 per cent of barren Government land for renewable energy.

In January 2015, renewable energy developer and technology provider, SunEdison has signed an MOU with Karnataka

Government to develop 5 GW of renewable energy projects within the state over the next five years. The agreement

includes details of an immediate plan to implement projects between 1,000 MW and 1,500 MW before December 31, 2016.

However, the company’s bankruptcy filing in the US in April 2016 is expected to impact the implementation of this project in

the state. Moreover, due to this bankruptcy filing, Karnataka Renewable Energy Development Ltd. has encashed the bank

guarantee for the small 20 MW project which was undertaken by SunEdison, in July 2016.

During 2015-16, 20 wind power projects were allotted to the state of Karnataka which include Solar Fields Energy Photo

Voltaic India Private Limited in Gulburga, Mituna Constructions Private Limited in Belgaum, SPI Green Energy (Amrutha

Power 15 MW) in Chikkamagalur, etc.


KEY INDUSTRIES – RENEWABLE ENERGY … (1/4)





NoRenewable energy

sourceAvailable potential (MW)

Capacity allotted

(MW)

Installed capacity

(MW)

1 Wind 55,857 13,416.32 2,871.54

2 Small hydro 3,000 3006.36 835.46

3 Biomass 1,000 369.98 113.03

4 Co-generation 2,000 1,832.85 1,252.05

5 Solar 24,700 1,124.00 124

Grand total 86,557 19,749.51 5,196.1

Source: KREDL, Central Electricity Authority, Karnataka Renewable Energy Policy1As of December 2015

Progress in renewable energy (MW) (2015-16)1




During 2015-16, Karnataka had a total wind energy

potential of approximately 14 GW.

By the end of December 2015, the installed capacity for

wind energy in public and private sector, both, was

recorded to be 2,876.54 MW. Wind energy accounted for

28.64%of the total installed capacity recorded by the end

of December 2015.

During 2015-16 (up to December 2015), a capacity

addition of 186.10 MW was done for wind power under

Renewable Energy, which was recorded to be 311.60 MW

in 2014-15.

Wind velocity in the state ranges from 0.85 m/s to 8.27

m/s.

Potential areas for wind power plants in the state include

Chitradurga, Gadag, Chikmaglur, Bellary, Davangere,

Koppal, Bijapur, Bagalkot and Belgaum.

Karnataka is counted among the top five destinations for

wind energy in India.

Karnataka wind energy density mapWind energy

Source: Centre for Wind Energy, Chennai

0 – 100

100 – 200

200 – 250

250 – 300

300 – 400

400 – 500

Wind power

density W/Sq m




The state has a solar energy potential of 10,000 MW.

Karnataka Solar Policy 2014-2021 plans to add solar

generation of minimum 2,000 MW by 2021. The total

capacity installed for solar energy during 2015-16 (up to

December 2015) was recorded to be 124 MW.

Many districts, especially coastal areas, receive solar

radiation in the range of 5.1-6.4 kWh/m2 during summer,

which is best suited for solar PV projects.

The central government’s policy mandates that solar energy

consumption should increase to 3.0 per cent of the total

consumption by 2022, up from the present consumption of

1.5 per cent.

Karnataka is the only state to have supported solar projects

under the REC (Renewable Energy Certificate) mechanism.

During 2015-16, 20 wind power projects were allotted to the

state of Karnataka, including Solar Fields Energy Photo

Voltaic India Private Limited in Gulburga, Mituna

Constructions Private Limited in Belgaum, SPI Green

Energy (Amrutha Power 15 MW) in Chikamagalur, etc.

Karnataka solar resource mapSolar energy

Source: Karnataka Solar Policy 2014-21, News articles

7474DECEMBER 2016

Agency Description Contact information

Department of

Industries and

Commerce

(DIC)

• Anchor department for development/establishment ofindustries in Karnataka.

• Responsible for formulating and implementingindustrial policies in the state.

No 49, South Block, Khanija BhavanRace Course RoadBengaluru - 560 001

Phone: 91-80 2238 9901-08Fax: 91-80-2238 9909

E-mail: [email protected] Website: www.karnatakaindustry.gov.in

Karnataka Udyog

Mitra

(KUM)

• Single contact point for investors in the state

• Considers/forwards proposals to concerned agenciesand communicates status to investors.

• Monitors implementation of approved projects.

• Single point of contact for information on variousaspects including land availability, statutoryapprovals and coordination.

No 49, South Block, Khanija BhavanEast Entrance, Race Course Road

Bengaluru - 560 001Phone: 91-80-2228 2392/5659,

Fax: 91-80-2226 6063E-mail: [email protected]

Website: kum.karnatak.gov.in


KEY INVESTMENT PROMOTION OFFICES … (1/2)


7575DECEMBER 2016

Agency Description

District Level Single Window

Clearance Committee (DLSWCC)

• Functions under the chairmanship of respective Deputy Commissioners forindustrial projects for investments less than US$ 0.65 million.

State Level Single Window

Clearance Committee (SLSWCC)

• Functions under the chairmanship of Minister for Large and Medium Industriesfor investments that range between US$ 0.65–10.9 million.

State High Level Clearance

Committee (SHLCC)

• Functions under the chairmanship of the Chief Minister for projects involvinginvestment of more than US$ 10.9 million.

District Industries Centres• Nodal agencies for approval of projects at the district level.

• Primary focus is to promote small scale, village and cottage industries.

Other departments• Various sector specific departments such as Department of Tourism, Department

of Information Technology and Biotechnology, Department of Food Processing,Department of Textiles and Department of Mines and Geology.


KEY INVESTMENT PROMOTION OFFICES … (2/2)


7676DECEMBER 2016

List of approvals and clearances required Departments to be consulted

Prior to setting up the unit

RegistrationDepartment of Industries and Commerce Department, Karnataka

Udyog Mitra (Single Window Agency)

Allotment of land/shed Karnataka Industrial Areas Development Board

Permission for land useState Department of Industries, Department of Town and Country

Planning

Site environmental approvalState Pollution Control Board and Ministry of Environment and

Forests

No objection certificate under Water and Air Act Karnataka State Pollution Control Board

Approval for construction activity and building plan Development Authority/Urban Local Body

Sanction of power State Electricity Board

No objection certificate Fire Department and Directorate of Factories and Boilers

Provisional trade tax registrations Central and State Excise Departments

Registration under Central Sales Tax Act Central and State Excise Departments


KEY APPROVALS REQUIRED … (1/2)


7777DECEMBER 2016

List of approvals and clearances required Departments to be consulted

Before commencement of production

No objection certificate under Water and Air Act State Pollution Control Board

No objection certificate Fire Department and Directorate of Factories and Boiler

Permanent Trade Tax registration Central and State Excise Departments

Registration under Central Sales Tax Act, 1956 Central and State Excise Departments

After commencement of production/activity

RegistrationDepartment of Industries and Commerce and respective sector

departments such as IT/BT/Tourism etc.


KEY APPROVALS REQUIRED … (2/2)



APPROVAL PROCESS


Karnataka Udyog Mitra

(Department of Industries and Commerce)

District Industries

Centre

(Tiny industries < US$

0.65 million)

State Level Single Window Agency

(Large/mid-size industries US$ 0.65 –

10.9 million)

High Level Clearance Committee

(Mega industries > US$ 10.9 million

Investor

Other sector-specific

departments

KIADB

(Land acquisition)

KSPCB

(Pollution Board)

KPTCL

(Electricity)

Inspectorate of

Factories and

Boilers

Commercial tax

Land conversion

BWSSB/KUWSDB

(Water supply)

Stage 1 Clearance of the project/industry Stage 2 Clearance

Source: Karnataka Udyog Mitra, Karnataka Industrial Areas Development Board and Department of Industries & Commerce

7979DECEMBER 2016

Cost parameter Cost estimate

Industrial land (US$ per hectare) 129,191.51

Power cost (US cents per kWh)Metropolitan area: 12.13

Non metro area: 8.7

Labour (US$/man year) 1,522

Occupation costs (US$/sq ft/year) 16.44

Employee cost (US$/ man year)

Software developers 6,383

Team leads 14,893

Architects 21,276.5

Project managers 31,915


COST OF DOING BUSINESS IN KARNATAKA


Source: Industry sources, Ministry of Labour and Employment, Government of India,

Bengaluru Water Supply and Sewerage Board, Karnataka Electricity Regulatory Commission pppindia1Land cost has been estimated by computing the average cost of land at various Industrial Parks in Karnataka

8080DECEMBER 2016

Karnataka Tourism Policy 2015-20

Read more

Objective


STATE ACTS & POLICIES … (1/6)


• To boost private investments across the tourism sector.

• To develop Karnataka as a dynamic, sustainable and most-favoured tourism destination by

increasing domestic & international visitations, offering high quality experience to visitors,

facilitating and accelerating investments and improving livelihood opportunities at the local level.

Solar Policy 2014-21

• To add solar generation of at least 2,000MW by 2021 in a phased manner.

• To encourage PPP model and R&D and innovation in the sector.

• To promote Roof Top Generation and Technologies.

• To transform Karnataka into an investor friendly state.Read more

Objectives

Karnataka Start-up Policy 2015-20

Read more

Objective • To encourage the growth of 20,000 technology based start-ups in the state by 2020.

• To enable the establishment of around 25 innovative technology solutions in the state.

• To create around 0.6 million direct as well as 1.2 million indirect employment opportunities in

technology sector.

http://www.kumbangalore.com/Sections.aspx?secid=8&MenuID=18&ParentId=3

Karnataka - June 2014_RN.pptx

http://www.gokenergy.gov.in/documents/Solar Policy English.pdf

http://www.gokenergy.gov.in/documents/Solar Policy English.pdf

http://www.kumbangalore.com/Sections.aspx?secid=8&MenuID=18&ParentId=3

8181DECEMBER 2016

ESDM Policy 2013

• To facilitate, promote and develop the ESDM sector in Karnataka and make Karnataka a

preferred destination for investment in this sector.

Read more

Objective

Aerospace Policy 2012

• To position Karnataka as a vibrant aerospace hub of Asia and a globally recognized aerospace

destination by enabling the environment for holistic and sustained growth of the aerospace sector.

• Increase the contribution of the aerospace sector towards enhancing the share of industry in the

state’s GSDP from 28.0 per cent to 32.0 per cent by 2022.Read more

Objectives




Karnataka Industrial Policy 2014-19

Read more

Objective • To make Karnataka the most preferred investment destination through inclusive, sustainable and

balanced growth.

https://www.bangaloreitbt.in/docs/2013/3/ESDM-Policy-ENGLISH.pdf

http://www.karnatakaindustry.gov.in/Old-document/AerospacePolicy _CII_ 1_6.pdf

http://www.karnatakaindustry.gov.in/documents/Karnataka Industrial Policy 2009-14 English.pdf

8282DECEMBER 2016

Information and Communication Technology Policy 2011

• To maintain Karnataka’s leadership in outsourced IT services.

• To retain Karnataka’s position as the state with the largest skilled workforce in India for IT

services, products and R&D.

• To enable Karnataka to be the most preferred destination for MSMEs (micro, small and medium

enterprises).Read more

Objectives

AVGC Policy 2012

• Encourage and support appropriate manpower development, infrastructure development and

business development in the AVGC sector.

Read more

Objective

Integrated Agribusiness Development Policy 2011

• To position Karnataka on a sustained growth path in the field of agricultural and allied sectors

through global technologies and innovative tools by creating enabling frameworks and state-of-

the-art infrastructure facilities, thereby generating higher returns for farming communities.

Read more

Objective




http://www.advantagekarnataka.com/images/pdf/Informanton &Communications Technology Policy 2011.pdf

https://www.bangaloreitbt.in/docs/2012/09/KAVG Policy.pdf

http://www.advantagekarnataka.com/images/pdf/Integrated Agribusiness Development Policy 2011.pdf

8383DECEMBER 2016

Millennium Biotech Policy II 2009

Read more

Objective

State Policy for Special Economic Zones 2009

Read more

Objective




• To facilitate and expedite establishment of SEZs, at the same time safeguarding the environment

and the interests of land owners.

• To increase the quality of human resources by supporting education and research institutions like

the Institute of Agri-Biotechnology (IABT), the Institute of Bioinformatics and Applied

Biotechnology (IBAB), the Centre for Human Genetics (CHG) and BT finishing schools; to create

specific infrastructure such as focused biotech parks in the areas of agriculture, marine biotech

and animal husbandry; to provide specific fiscal incentives.

Karnataka Renewable Energy Policy 2009-14

Read more

Objectives • Development, propagation and promotion of renewable energy resources and technologies.

• Creation of a suitable environment for private sector participation in renewable energy power

generation.

http://www.bangaloreitbt.in/docs/2012/09/Biotech_Policy_II.pdf

http://www.advantagekarnataka.com/images/pdf/State Policy for Special Economic Zones 2009 with Amendments.pdf

http://www.advantagekarnataka.com/images/pdf/Karnataka-Renewable-Energy-Policy-2009-14.pdf

8484DECEMBER 2016

Infrastructure Policy 2007

• To provide a fair and transparent policy framework for facilitating economic growth and

encouraging Public–Private Partnerships (PPP) in infrastructure.

Read more

Objective




Upcoming Policy

Karnataka Mineral Policy 2008

Read more

Objectives• To optimise the state’s geological potential by scientific and detailed prospecting. State-of-the-art

techniques will be encouraged by combining the resources of the private and public sectors.

• To resolutely pursue the policy of preserving flora, fauna, and bio-diversity and ensure that the

invaluable forest wealth is safeguarded while granting mineral concessions. To promote

transparency in granting mining concessions. The applicants who propose establishment of

industries for value addition within the vicinity of the mineral bearing areas will be given priority.

http://idd.kar.nic.in/docs/infra_policy.pdf

http://karnatakaindustry.gov.in/documents/Karnataka state mineral policy 2008.pdf




Policy Department

Semiconductor policy 2010 Department of IT /BT and Science & Technology, Government of Karnataka

I4 (IT, ITeS, Innovation, Incentives)

policy

Department of Information Technology, Biotechnology and Science &

Technology, Government of Karnataka

Karnataka Pharmaceutical policy

2012

Health and Family Welfare

Department, Government of

Karnataka

New textiles policy 2013-18Department of Handlooms and Textiles, Government of

Karnataka


CONFERENCES/SUMMITS FOR 2016-17


Source: Conference Alerts

Summit / ConferenceVenue of Summit /

ConferenceDate

International Summit on Engineering and Technology(ISET-

16)Bengaluru 27th August, 2016

International Conference on Engineering and Technology

(ICET-16)Mysore 4th September, 2016

International Conference on Computer Science , Electronics

and Communication Engineering (ICCSECE-16)Mangalore 18th September, 2016

Technoarete-International Summit on Engineering and

Technology(ISET-16)Bengaluru 22nd October, 2016

8787DECEMBER 2016

Year INR equivalent of one US$

2004-05 44.81

2005-06 44.14

2006-07 45.14

2007-08 40.27

2008-09 46.14

2009-10 47.42

2010-11 45.62

2011-12 48.13

2012-13 54.31

2013-14 60.28

2014-15 60.28

2015-16 65.46

Average exchange rates


ANNEXURE


Source: Reserve Bank of India

8888DECEMBER 2016

India Brand Equity Foundation (“IBEF”) engaged TechSci to prepare this presentation and the same has been

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DISCLAIMER


karnataka state report - december 2016

Economy & Finance