Sources: Global Investors Meet 2012, Department of IT, BT and S&T, Karnataka, ASSOCHAM report, Planning Commission Databook 2012-13, DIPP, CMIE

ITIR: Information technology Investment Region, BIA: Bengaluru International Airport, **In Indian rupee terms, ***At 2012-13 rates

6th largest state in terms

of GDP size in 2011-12

• The state contributed 5.5 per cent to the GSDP of India in 2012-13.

• Average GSDP growth rate between 2004-05 and 2012-13 was about 15.4** per cent.

• The per capita GSDP increased to US$ 1,594.0, growing at a CAGR of 14.1** per cent

between 2004-05 and 2012-13.

IT hub of India

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

world.

• It accounted for 41.6 per cent (US$ 28.3 billion) of India’s electronics and software exports

in 2011-12.

• It has 47 IT/ITeS SEZs, 3 software technology parks and dedicated IT investment regions.

Vibrant industrial base

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

engineering industries.

• It has sector-specific SEZs for key industries such as IT, biotechnology, engineering, food

processing and aerospace. An ITIR spread across 10,000 acres is being developed near

BIA.

One of the preferred

investment destinations

• A conducive business environment has helped the state rank fifth in terms of attracting

private sector investments in India, as of December 2012.

• Total outstanding investments amounted to US$ 197.4*** billion in 2012-13, while

cumulative FDI inflows from April 2000 to August 2013 stood at US$ 11.5 billion, the fourth

highest in India.

Sources: Indian Minerals Yearbook 2011, Global Investors Meet 2012,

Economic Survey of Karnataka 2012-13, Visvesvarya Industrial Trade Centre, Bounteous Karnataka

*Till September 2012

Vast natural resource

pool

• Karnataka is the sole producer of felsites and the leading producer of iron ore, chromite,

and dunite and contributes 99.0 per cent to India's total gold production.

• Karnataka hosts 78.0 per cent of vanadium ore, 74.0 per cent of iron ore (magnetite), 42.0

per cent of tungsten ore and 38.0 per cent of asbestos reserves in India.

Strong knowledge

infrastructure

• Karnataka has 40 universities, 4,107 pre-university colleges, 197 engineering colleges

and 291 polytechnics, 43 medical colleges, 41 dental colleges and 1,162 industrial training

institutes.

• It also houses 366 R&D centres; around 400 of the Fortune Global 500 companies

outsource their IT services to firms in Bengaluru.

Contributes 7 per cent

to the agricultural

production of India

• Karnataka accounts for 70.0 per cent of the coffee production in India; coffee exports from

Karnataka stood at US$ 353.0 million in 2012-13*.

• It is the 5th largest producer of fruits in the country and the fourth largest producer of

spices.

• Karnataka is also the third largest producer of plantation crops in the country.

Number 4 in terms of

tourist arrivals in India

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

makes it a nature tourist's paradise.

• It has World Heritage Sites at Hampi and Pattadakal.

Sources: Karnataka Udyog Mitra, Planning Commission Databook 2012-13, D&B Cluster State Overview, CMIE, Karnataka Vision 2020,

Department of Industrial Policy and Promotion

*In Indian rupee terms, **At 2011-12 rates, includes electronics and computer software

Growing demand High economic growth

• GSDP expanded at a CAGR of 15.4* per cent between 2004-05 and 2012-13.

• 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. It 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, 2009-14.

• Investor friendly sector specific policies to promote industries like IT, biotechnology, textiles and tourism.

• 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.

2011-12

IT exports:

US$ 28.3

billion**

2020

target

IT exports:

US$ 73.7

billion

Advantage:

Karnataka

Karnataka is located in the southern region of India. It 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.

Sources: Economic Survey of Karnataka 2012-13, *Provisional data – Census 2011

Parameters Karnataka

Capital Bengaluru

Geographical area (sq km) 191,791

Administrative districts (No) 30

Population density (persons per sq km)* 319

Total population (million)* 61

Male population (million)* 31

Female population (million)* 30

Sex ratio (females per 1,000 males)* 968

Literacy rate (%)* 75.6

Source: Maps of India

Parameter Karnataka All-States Source

Economy

GSDP as a percentage of all states’ GSDP 5.50 100 Planning Commission Databook, October

2013, current prices

Average GSDP growth rate (%)** 15.4 15.6 Planning Commission Databook, October

2013, current prices

Per capita GSDP (US$) 1594.0 1414.7 Planning Commission Databook, October

2013, current prices

Physical infrastructure

Installed power capacity (MW) 13,818.1 228,721.7 Central Electricity Authority, as of September

2013

Wireless subscribers (No) 53,426,852 870,582,006 Telecom Regulatory Authority of India, as of

September 2013

Broadband subscribers (No) 1,344,354*** 15,050,000 Ministry of Communications & Information

Technology, as of March 2013

National Highway length (km) 4,642 79,116 National Highways Authority of India

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

Airports (No) 5 133 Airports Authority of India

**In Indian rupee terms, ***As of December 2011

Parameter Karnataka All-States Source

Social indicators

Literacy rate (%) 75.6 74.0 Provisional data – Census 2011

Birth rate (per 1,000 population) 18.5 21.6 SRS Bulletin (www.censusindia.gov.in), 2012

Investment

FDI equity inflows (US$ billion) 11.5 201.9 Department of Industrial Policy & Promotion,

April 2000 to August 2013

Outstanding investments (US$ billion) 197.4* 2,658.2* CMIE (2012-13)

Industrial infrastructure

PPP projects (No) 108 881 www.pppindiadatabase.com

SEZs (No) 40 392 Notified as of July 2013, www.sezindia.nic.in

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

*At 2012-13 rates

37.1

44.2 50.2

67.3 67.6 71.2

90.1 96.1 96.2

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

201

2-2

01

3*

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

of Karnataka was about US$ 96.2 billion in 2012-13.

The average GSDP growth rate between 2004-05 and

2012-13 was about 15.4** per cent.

Growth has been mainly driven by secondary and tertiary

sectors.

Sources: Planning Commission Databook 2012-13

**In Indian rupee terms

GSDP of Karnataka at current prices (US$ billion)

CAGR:

15.4%**

33.1

39.5 45.0

60.4 60.7 63.4

80.8 85.3 85.6

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

201

2-2

01

3*

The net state domestic product (NSDP) of Karnataka was

about US$ 85.6 billion in 2012-13.

The average NSDP growth rate between 2004-05 and

2012-13 was 15.3** per cent.

Sources: Planning Commission Databook 2012-13

**In Indian rupee terms

NSDP of Karnataka at current prices (US$ billion)

CAGR:

15.3%**

555 644

739

870

986 1,061

1,278

1,419

1,594

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

201

2-2

01

3*

The state’s per capita GSDP in 2012-13 was US$ 1,594.0.

The per capita GSDP increased at a compound annual

growth rate (CAGR) of 14.1** per cent between 2004-05

and 2012-13.

Sources: Planning Commission Databook 2012-13

**In Indian rupee terms

GSDP per capita of Karnataka at current

prices (US$)

CAGR:

14.1%**

598 705 795

1,054 1,047 1,083

1,366 1,427 1,418

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

201

2-2

01

3*

The state’s per capita NSDP in 2012-13 was US$ 1,418.0.

The per capita NSDP increased at a CAGR of 14.1** per

cent between 2004-05 and 2012-13.

Sources: Planning Commission Databook 2012-13

**In Indian rupee terms

NSDP per capita of Karnataka at current

prices (US$)

CAGR:

14.1%**

51.0% 58.4%

29.1% 26.6%

19.9% 15.0%

2004-05 2012-13

Tertiary Sector Secondary Sector Primary Sector

In 2012-13, the tertiary sector contributed 58.4 per cent to

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

secondary sector (26.6 per cent) and primary sector (15.0

per cent).

At a CAGR of 17.3* per cent, the tertiary sector has been

the fastest growing among the three sectors from 2004-05

to 2012-13. The growth has been driven by trade, hotels,

real estate, finance, insurance, transport, communications

and other services.

The secondary sector grew at a CAGR of 14.1* per cent

between 2004-05 and 2012-13. It was driven by

manufacturing, construction and electricity, gas & water

supply.

The primary sector grew at a CAGR of 11.3* per cent

between 2004-05 and 2012-13.

Source: CMIE

*Growth rate in INR terms

GSDP composition by sector

CAGR

17.3*%

11.3*%

14.1*%

Sources: Economic Survey of Karnataka 2011-12, Coffee Board of India, Indian Horticulture Database

2011, National Horticulture Board, Karnataka Agriculture Budget 2013-14, Coconut Development

Board, *’000 bales of 170 kgs each, ^Forecast by CMIE, ^^Million nuts

Crop

Annual production

estimate^ in

2012-13 (‘000 tonnes)

Sugarcane 35,732

Maize 3,429

Rice 3,283

Onion 2,510

Banana 2,190

Coconut^^ 1,716

Sorghum (jowar) 1,420

Cotton* 860

Groundnut 412

Potato 510

Coffee 295

Wheat 172

Total pulses 1,319

Total major oilseeds 946

Sugarcane was the major crop of the state with production

of about 35.7 million tonnes in 2011-12.

The state’s food grain production is estimated to be 11.0

million tonnes in 2012-13.

Major oilseeds production is estimated to be 1.0 million

tonnes in 2012-13.

Production of cereals and pulses in the state is estimated to

be 10.6 million tonnes and 1.3 million tonnes, respectively,

in 2012-13.

In 2012-13, total vegetable production in the state is

estimated at 8.0 million tonnes.

Total fruits production in the state was estimated at 6.6

million tonnes in 2012-13.

Sources: Visvesvarya Industrial Trade Centre, Government of Karnataka

*Growth rate in INR terms

STPI: Software Technology Parks of India

During 2011-12, total exports from the state aggregated

US$ 45.7 billion, which is approximately 12.3 per cent of

India’s total exports.

Karnataka’s exports grew at a CAGR of 15.3* per cent

during 2006-07 to 2011-12.

From a sector-specific perspective, exports of agriculture-

based products, computer software & biotechnology,

readymade garments, petroleum & petroleum products,

engineering products, coffee products, basic chemicals,

pharmaceuticals & cosmetics, gems & jewellery, marine

products and spices increased significantly in 2011-12 as

compared to the previous year.

Electronic and software exports from the state reached US$

28.3 billion in 2011-12.

Karnataka exported US$ 4,985.0 million worth of petroleum

and chemical products during 2011-12.

Break up of exports by sector (2011-12)

Engineering

products

4%

Miscellaneous

and others

8%

Onions 17%

Electronics &

computer

software

62%

Petroleum

and

chemical

products

11%

Gems and

jewellery

11%

Handloom & textiles

4%

The state has a stable political environment. Successive

state governments have realized the importance of

industries in the state and have provided conducive

business environment to attract domestic as well as foreign

entities.

In 2012-13, outstanding investments in the state totalled

US$ 197.4* billion, representing nearly 7.4 per cent of total

outstanding investments in India.

Of the total outstanding investments, the manufacturing

sector attracted the most (39.7 per cent), followed by the

services sector (24.8 per cent).

Karnataka is ranked 5th 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 August 2013 amounted to US$ 11.5 billion, the

fourth highest in India.

FDI inflows from April 2013 to August 2013 stood at US$

738 million.

Sources: Composition of outstanding investments across states,

ASSOCHAM, Department of Industrial Policy and Promotion,

Global Investors Meet 2012, CMIE

*At 2012-13 rates

Break up of outstanding investments by sector

(2012-13)

39.7%

24.8%

14.9%

15.0%

4.2%

1.4%

Manufacturing

Services

Real Estate

Electricity

Irrigation

Mining

Karnataka attracted investments worth US$ 150.2* billion

during the Global Investors Meet, 2012.

Source: Global Investors Meet, 2012, *At 2012-13 rates

Investment proposals signed at Global Investors Meet

2012

Sector Amount (US$ billion)*

Energy 52.15

Automobile 1.95

Iron and steel 22.56

Cement and other minerals 10.34

Education and R&D 1.73

Agro, food and horticulture 3.32

Biotech and pharma 0.38

Textiles and apparels 0.99

Tourism 8.30

Housing and urban development 6.87

Industrial infrastructure 9.18

IT & electronics 14.98

Chemicals and petrochemicals 8.87

Engineering 3.29

Aerospace and defence 2.66

Others 2.74

The state is well connected to its five neighbouring states

and other parts of India via 15 national highways that run

through the state.

The Karnataka Road Development Corporation Ltd

(KRDCL) has been created as a state-owned enterprise for

the development of road infrastructure facilities in the state.

Under Karnataka State Highways Improvement Project

(KSHP-I), 2,414 km of state highways and major district

roads were taken up for development. Of this, a length of

2,384 km has been developed.

The Karnataka State Road Transport Corporation (KSRTC),

established in August 1961, provides state road transport

services.

Karnataka plans to construct 100,000 km of roads by 2020;

this entails an investment of US$ 26.0 billion.

Sources: Economic Survey of Karnataka 2012-13,

Ministry of Road Transport & Highways, Global Investors Meet 2012,

Department of Tourism, Karnataka, Karnataka PWD, *As of December 2010, **As of March 2013

Road type Road length in km,

(March 2012)

National Highways 4,642**

State Highways 20,770

Major District Roads 49,959

Municipal Roads 8,366*

Other roads 148,412*

Source: Maps of India

Sources: Economic Survey of Karnataka 2011-12, Infrastructure Development Department, Karnataka, *At 2011-12 prices

Karnataka railway network

Type of railway Length (km)

South Central Railways 268

South Western Railways 2,697

Southern Railways 37

Konkan Railways 248

Total 3,250

Karnataka is well-connected to other parts of the country

via 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.

Bengaluru Metro Rail, also known as Namma Metro (our

metro), is a mass-transit rail system for the city of

Bengaluru. Bengaluru Metro Rail Corporation Limited

(BMRCL), a joint venture of Government of India and

Government of Karnataka, is a special purpose vehicle

(SPV) entrusted with the responsibility of implementation

of Bengaluru Metro Rail Project. Namma Metro started in

October 2011 and Phase II is currently under

implementation.

Key proposed new projects

Project Length Cost (US$

million)*

Hassan-Bengaluru (New Line) 166 197

Tumkur-Rayadurga (New Line) 102 202

Munirabad-Mehboobnagar (New Line) 170 177

Bagalkot-Kudachi (New Line) 142 170

Tumkur-Davangere (New Line) 200 190

Bidar-Gulbarga (New Line) 107 77

Hubli-Ankola (New Line) 167 483

Bengaluru-Satyamangala (New Line) 162 375

Source: Global Investors Meet, 2012

*Association of Private Airport Operators

The state has five domestic airports. These are located in

Bengaluru, Mangalore, Hubli, Mysore and Belgaum.

International flights operate from the airports at Bengaluru

and Mangalore.

Bengaluru International Airport; the country’s first

greenfield international airport, has been developed at

Devanahalli in Bengaluru as a passenger and cargo

department hub. It was developed under the PPP model

and started operations in May 2008.

The Bengaluru International Airport handles 12 million

passengers annually. The passenger traffic in BIAL in

2012-13 stood at 11.99* million passengers (Domestic

passengers: 9.49 and International passengers: 2.50)

Minor airports at Shimoga, Gulbarga, Bijapur and Hassan

are being developed on PPP mode through private

promoters.

The existing airport at Hubli is being upgraded to

international standards.

Ports

Major ports • New Mangalore Port

Minor ports

• Karwar

• Belekeri

• Tadri

• Honnavar

• Bhatkal

• Kundapur

• Hangarkatta

• Malpe

• Padubidri

• Old Mangalore

Source: Global Investors Meet, 2012

Karwar

Port

New

Mangalore

Port

There are 11 ports in Karnataka, of which new Mangalore is

a major port.

New Mangalore Port is the 9th major port in India with the

deepest inner harbour on the west coast.

Major cargo have been handled by Karwar, Belikeri, Malpe

and old Mangalore ports in 2010-11. Among them, the

cargo handled by Belikeri port was significantly higher as

compared to other ports.

9,346.7 10,386.3

11,546.1

13,393.5 13,818.1

2008-09 2009-10 2010-11 2011-12 2012-13*

As of September 2013, the state had an installed power

generation capacity of 13,818.1 MW. The state contributed

7,373.1 MW of this capacity, the private sector contributed

4,811.8 MW, whereas the central government’s share was

1,633.3 MW.

The installed capacity has increased from 9,346.7 MW in

2009 to 13,818.1 MW in 2013.

Of the total installed power generation capacity, 6,392.8

MW was contributed by thermal power. Capacity of 254.9

MW and 3,570.6 MW was contributed by nuclear and

renewable power, respectively, while hydropower

contributed 3,599.8 MW.

The government has taken steps to undertake several new

small, medium and large scale power projects.

Karnataka Renewable Energy Development Limited

(KREDL) was established in 1996 to promote the

development of renewable energy sources in the state.

Source: Central Electricity Authority

*As of September 2013

Installed power capacity (MW)

CAGR:

9.3%

The installed capacity will increase by 10,200 MW over the

next three years, as a number of projects are currently

under implementation.

State-owned power generation in Karnataka is managed by:

Karnataka Power Corporation Limited (KPCL)

Power transmission is overseen by:

Karnataka Power Transmission Corporation Limited

(KPTCL)

Karnataka has five electricity supply companies:

Bengaluru Electricity Supply Company Limited

(BESCOM)

Mangalore Electricity Supply Company Limited

(MESCOM)

Hubli Electricity Supply Company Limited

(HESCOM)

Gulbarga Electricity Supply Company Limited

(GESCOM)

Chamundeshwari Electricity Supply Corporation

Limited (CESCOM)

Major power projects to be completed in the next

three years

Project Capacity

Yaramaras Thermal Power Station 2x800 MW

Yadlapura Thermal Power Station 2x800 MW

Godhana Thermal Power Station 2x800 MW

Bidadi(Gas based) 1x700 MW

3rd

Unit of Bellary Thermal Power

Station 1x700 MW

NTPC Project at Kudagi 4000 MW

Total 10,200 MW

Sources: Central Electricity Authority, Karnataka Budget 2013-14

Telecom infrastructure (September 2013)

Wireless subscribers 53,426,852

Wire-line subscribers 2,371,080

Broadband subscribers 1,344,354*

Post offices 9,703^

Telephone exchanges 2,884

Teledensity (in per cent) 98.5

Sources: Telecom Regulatory Authority of India,

Department of Telecommunications, Annual Report 2012-13,

Ministry of Communications and Information Technology,

Economic Survey of Karnataka 2012-13, India Post

*As of December 2011, ^As of 2011-12

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 53.4 million wireless connections and 2.4 million

wire-line subscribers in Karnataka, as of September 2013.

The entire state is networked via optic-fibre cables (OFCs)

of the state-owned company, Bharat Sanchar Nigam

Limited (BSNL), as well as private companies like 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.

Major telecom operators in Karnataka

Bharti Airtel

IDEA Cellular

Vodafone Essar

Bharat Sanchar Nigam Limited (BSNL)

Aircel Ltd

Reliance Communications

Tata Teleservices

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. These schemes are

to be completed by 2013.

• Cauvery Water Supply

Scheme (CWSS) Stage IV,

Phases I to 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.

• 42 urban areas

have been

provided with

underground

drainage (UGD)

facilities in the

state.

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM), Bengaluru and Mysore have been

sanctioned 47 projects worth US$ 615.1* million during

2006-13.

Some of the key areas of development are roads and

flyovers, water supply, storm-water drainage, sewerage and

urban transport.

A total of 26 projects related to roads, flyovers, water supply

and urban transport located in Bengaluru have been

completed between April 2006 and November 2013, with a

value of US$ 136.6 million.

The Karnataka Urban Water Supply and Drainage Board

(KUWSDB) is responsible for providing water supply and

sewerage facilities in 213 urban areas of the state, except

the areas serviced by the Bruhath Bengaluru Mahanagar

Palike (which provides services in Bengaluru city and

surrounding areas).

Sources: JNNURM, Ministry of Urban Development,

www.urbanindia.nic.in

MLD: Million litres per day

*As of November 2013, at 2012-13 rates

Contract authority Project name Investment

(US$ million)

PPP

type Stage

Airports

Ministry of Civil Aviation Bangalore International Airport 419.6 BOOT In operation

Ports

Department of Ports & Inland Water

Transport (DPIWT), Karnataka 2nd stage development of modern deep sea port at

Karwar 166.2 BOOST Bidding

DPIWT, Karnataka Honnavar Port Development, Uttar Kannada 239.1 BOOST Bidding

DPIWT, Karnataka Development of Malpe Port in Udupi District 284.8 BOOST Bidding

Roads

Bengaluru Development Authority Construction of Ring Road Around Bengaluru City 652.2 BOT-Toll EOI

Karnataka Road Development

Corporation (KRDCL)

Development of road from State Highway-17 to

State Highway-19 307.2 BOT-Toll Bidding

Karnataka Road Development

Corporation (KRDCL)

Development of road Sira-Madugiri-Gowribidanur-

Chikkaballapura-Shidalgatta-Chithamani-

Srinivasapur-Mulbagal SH-58 and other

connecting roads

309.1 BOT-Toll Bidding

Source: www.pppindiadatabase.com

BOOT: Build-Own-Operate-Transfer, BOOST: Build-Own-Operate-Share-Transfer, BOT: Build-Operate-Transfer, EOI: Expression of Interest

Contract authority Project name

Investment

(US$

million)

PPP

type Stage

Tourism

Department of Tourism, Karnataka Development of international convention centre at

Devanahalli 221.5

BOT-

Annuity Construction

Urban development

Karnataka Urban Infrastructure

Development and Finance

Corporation 24x7 urban water supply 367.1 -

In

implementation

Karnataka Land Army Corporation

Limited (KLAC) Establishment of KLAC office 239.1 DBFOT Bidding

Animal Husbandry and Veterinary

Science

Commercial development of animal husbandry and

veterinary science land 55.3 DBFOT EOI

Bengaluru Mahanagara Palike,

Karnataka Transfer station in Bengaluru 18.9 - EOI

Source: www.pppindiadatabase.com

BOT: Build-Operate-Transfer, DBFOT: Design-Build-Finance-Operate-Transfer, EOI: Expression of Interest

Sources: www.sezindia.nic.in, Department of Industries and Commerce, Karnataka

*Growth rate in INR terms

Name/Developer Location Primary industry

M/s. Ozone SEZ Developers Pvt Ltd Chikkaballapura Pharmaceuticals

SEZ with valid in-principle approval

The state has 22 operational, one valid in-principle approval

and 61 formal approval SEZs, as of July 2013.

The Karnataka Industrial Areas Development Board has

developed 141 industrial areas spread all over the state.

The Karnataka State Industrial & Infrastructure

Development Corporation has promoted over 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.

Exports from SEZs in Karnataka grew at a CAGR of 97.6*

per cent from US$ 0.4 billion in 2007-08 to US$ 5.3 billion in

2011-12.

Exports from SEZs in Karnataka (US$ billion)

0.4

1.7

2.2

4.1

5.3

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

CAGR:

97.6*%

Name/Developer Location Primary industry

Manyata Embassy Business Park Bengaluru IT/ITeS

WIPRO Limited Varthur Hobli, Electronic City, Bengaluru IT

Infosys Technologies SEZ Mangalore Dakshina, Kannada IT/ITeS

Vrindavan Tech Villages SEZ (Vikas Telecom Limited) Bengaluru IT/ITeS

Cessna Garden Developers Pvt Ltd Bengaluru IT/ITeS

Biocon Limited Anekal, Bengaluru Biotechnology

HCL Technologies Ltd Bengaluru IT/ITeS

KIADB (Textile) Hasan Textiles

Information Technology Park Ltd Bengaluru IT/ITeS

Primal Projects Private Limited Bengaluru IT/ITeS

Bagmane Construction Pvt Ltd Bengaluru North IT/ITeS

Synefra Eng. & Const. (Suzlon Infrastructure Limited) Udupi Hi-tech engineering products and

related services

KIADB (Food) Samudravalli, Sankalapura Food processing

Gopalan Enterprises (India) Private Limited Whitefield, Bengaluru IT/ITeS

Quest SEZ Development Private Limited Belgaum Precision engineering products

Some of the operational SEZs in Karnataka

Source: www.sezindia.nic.in

Source: www.sezindia.nic.in

Name/Developer Location Primary industry

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 Ltd Near 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

Sources: Economic Survey of Karnataka 2012-13,

University Grants Commission, Medical Council of India, Census 2011 (provisional data)

The state has a literacy rate of 75.6 per cent according to

the provisional data of Census 2011; the male literacy rate

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

The state has 4,107 pre-university colleges, 1,384 ‘other

colleges’ and 40 universities to impart general education.

There are about 1.00 million students in the pre-university

colleges.

There are 291 polytechnics and 197 engineering colleges to

provide technical education in the state.

Literacy rates (%)

Literacy rate 75.6

Male literacy 82.8

Female literacy 68.1

Educational infrastructure (No)

• Universities: 40

• Pre-university colleges: 4,107

• Other colleges: 1,384

• Engineering colleges: 197

• Polytechnics: 291

• Vocational institutes: 553

• Medical colleges: 43

• Dental colleges: 41

• Ayurvedic colleges: 59

• Homeopathy colleges: 11

• Unani colleges: 4

Karnataka education statistics (2011-12)

Number of schools

Lower primary: 25,951

Higher primary: 33,604

High schools: 13,862

School dropout rate

(In per cent)

Lower primary: 1.2

Higher primary: 4.4

Pupil-teacher ratio Lower primary: 14:1

Higher primary: 23:1

State participation in primary education is significant as 75.8

per cent of the primary schools are managed by Department

of Education.

Karnataka is home to several premier institutions:

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

Source: Economic Survey of Karnataka 2012-13

Sources: Economic Survey of Karnataka 2012-13, Sample

Registration System (SRS) Bulletin Sep, 2013

(www.censusindia.gov.in)

*Per thousand persons

**Per thousand live births

***As of March 2011

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.

Health indicators (2013)

Beds per 100,000 population (2011-12) 112

Birth rate* 18.5

Death rate* 7.1

Infant mortality rate** 32

Life expectancy at birth (years)

Male (2002-06) 63.6

Female (2002-06) 67.1 Health infrastructure (as of September 2012)

• District hospitals: 18

• Other hospitals: 10

• Community health centres: 186

• Primary health centres: 2,346

• Sub-centres: 8,871

• Dispensaries: 659***

• Beds in hospitals: 62,071

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 a number of convention centres, which are 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.

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.

The state has about 366 R&D centres, the most in India.

About 50 per cent of MNC R&D centres in India are based

in Bengaluru.

Karnataka is making significant investments in industrial

infrastructure, such as setting up industrial clusters and

special economic zones (SEZs) and public-private

partnership (PPP) projects to provide an impetus to further

industrial development.

In November 2013, the Karnataka State high-level

clearance committee has cleared 10 projects with an

investment of over Rs 100.4 billion. The projects are

expected to create 14,105 jobs in 10 districts.

Key industries in Karnataka

• IT and ITeS • Biotechnology • Engineering • Electronics and telecom • Automotive • Textiles and apparel • Agro and food processing (floriculture) • Aerospace • Animation • Electronic hardware • Tourism • Renewable energy

12.5 17.3

17.9 19.1

23.1

28.3

8.8

200

6-0

7

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3**

Karnataka has emerged as an information technology (IT)

hub of India.

Bengaluru is the 4th largest technological cluster in the world

after Silicon Valley, Boston and London.

About 50.0 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 US$ 8.8

billion in 2012-13**.

Karnataka has 47 IT/ITeS SEZs and dedicated IT

investment regions.

There are 2,160 IT companies in the state.

The state houses 5,50,000 IT Professionals, or 1/3rd of the

total IT professionals in the country.

At least 400 Fortune 500 companies have outsourcing

operations in Karnataka.

In September 2013, US-based eBay Inc launched a new

global development centre in India, spread across 1,50,000

sq ft.

Some of the key players

• Wipro Technologies

• Infosys

• Genpact

• Accenture

Electronics and software exports from Karnataka

(US$ billion)

Sources: Software Technology Parks of India, Global Investors Meet

2012, KIADB, Department of IT, Government of Karnataka, Karnataka ICT

Group 2020 Report, Visvesvarya Industrial Trade Centre

*Growth rate in INR terms

**Till September 2012

CAGR:

19.2*%

Wipro Ltd

Infosys Technologies Ltd

Genpact

Accenture

• Wipro Ltd was established in 1945; and posted revenues of US$ 6.9 billion in 2012-13. It is present in

areas of 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 (CRM).

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

‘centres of excellence’ in over 54 countries. In September 2009, the company launched its Centre of

Excellence within its Electronic City campus; to work with other leading IT firms to develop innovative

IT solutions.

• Infosys Technologies Ltd was set up in 1981, and posted revenues of US$ 7.4 billion in 2012-13. The

company is present in areas of IT consulting, modular global sourcing, process re-engineering and

BPO services.

• The company has 73 offices and 94 development centers in US, India, China, Australia, Japan, UK,

Germany, France, and many other countries; and has marketing and technological alliances with

IBM, HP, Microsoft, Oracle, etc. It has operations at multiple locations at Bengaluru, Mangalore and

Mysore in Karnataka.

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

company’s net revenues in 2012 stood at US$ 1.9 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. The company 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.

• The company has one consulting office and seven delivery centres in Bengaluru.

Sources: Global Investors Meet 2012, Indian Biotechnology Industry Outlook

2012, Analyz Research, Visvesvarya Industrial Trade Centre

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.

195 out of the total 340 biotech companies in India are

located in Karnataka. The state has over 6,800 scientists

involved in biotech research.

Premier life sciences institutions such as Indian Institute of

Science, National Centre for Biological Science, Jawaharlal

Nehru Centre for Advanced Scientific Research, etc., are

present in the state.

Sector-focused SEZs have been set up in Mysore,

Mangalore, Hubli-Dharwar, Belgaum, Shimoga, Gulbarga,

Kolar & Mandya.

12 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, is due to come up

in Bengaluru.

Some of the key players

• Biocon

• AstraZeneca India

• Jubilant Life Sciences Ltd

• GlaxoSmithKline Pharmaceuticals Ltd

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. It is among the leaders in bio-

pharmaceuticals and bio-services. It has its corporate headquarter at Bengaluru.

• The company’s revenue was about US$ 447 million in 2012-13.

• 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,

maternal healthcare, etc..

• 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. It is the largest custom research and

manufacturing services (CRAMS) company and provides leading drug discovery & development

solutions outside India.

• The company has a manufacturing facility in Nanjangud, with around 625 employees.

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

pharmaceutical companies in India.

• The company’s revenue was about US$ 482.7 million in 2012-13.

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

clinical development centre in Bengaluru.

Source: VITC-NCTI Trade Info

*Till September 2012

The engineering industry in Karnataka has positive

prospects, given its performance.

In 2012-13*, the export of engineering products stood at

US$ 1.0 billion.

Exports include machine tools, industrial machinery, cutting

tools, castings, automotive components, electrodes, welding

equipment, construction and earthmoving equipment, and

helicopter spares.

A number of engineering exporters are based in Bengaluru,

Hubli, Mysore, Belgaum, Mangalore, and Shimoga.

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.

Some of the key players

• Bharat Earth Movers Limited (BEML)

• Hindustan Machine Tools Limited (HMT)

• Bharat Heavy Electricals Limited (BHEL)

• Saint-Gobain India

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 its registered office at Bengaluru and units at Kolar Gold Fields, Mysore and

Bengaluru.

• 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.

• The company 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. It has 16 manufacturing divisions, two repair

units, four regional offices, eight service centres, eight overseas offices and 15 regional centres.

• BHEL has its electronics division at Bengaluru.

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

companies in India for a variety of products ranging from glass to engineering products.

• The company has a manufacturing plant in Bengaluru.

Source: Department of Industries and Commerce

Karnataka is a leading state of the country in electronics and

telecommunication with over 300 of the world’s leading

companies.

The state has high end research and development

organisations like 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.

It has excellent telecom infrastructure with 140 out of 170

towns connected by Optic Fibre Cables (OFC) network.

Bengaluru district is the major hub of 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.

Some of the key players

• Bharat Electronics Ltd

• Nokia

• Siemens

• Philips Electronics India Ltd

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 at Bengaluru, Karnataka.

• 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.

• It 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, employs approximately 17,700 people

and has 21 manufacturing facilities in India. It has several offices in Bengaluru.

• Philips is present in India for over 75 years. It is a leader in consumer electronics,

healthcare and lighting systems; the company employs over 4,500 people in India.

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

Source: Global Investors Meet 2012

*At 2011-12 rates

Karnataka has a vibrant auto industry with investments of

around US$ 713.0 million and annual revenues of US$

604.0 million.

It 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 powertrains for foreign

destinations as well as the domestic market.

Toyota, Volvo, Tata Marcopolo and TVS Motors have set up

vehicle manufacturing units in Karnataka, which has led to

the growth of ancillary units involved in manufacturing tyres,

bearings and other auto spare parts.

The state has 3 auto clusters, 1 industrial valve cluster and

one auto component cluster.

Two manufacturing hubs are coming up in Narsapur and

Vemagal Industrial Areas in Kolar District.

Some of the key players

• Toyota Kirloskar

• Volvo India

• TVS Motor Company

• Delphi Automotive Systems Pvt Ltd

The government is in the process of announcing a

Dedicated Automobile Policy.

The sector attracted US$ 2.0 billion* of investments during

the Global Investors Meet 2012.

In September 2013, Bosch (German auto component

manufacturer) announced an investment of US$ 240 million

over the next seven years in Bangalore, for expanding its

manufacturing and R&D capabilities.

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 over 190 countries.

• In 2009, the Bengaluru bus plant delivered over 600 buses, a 50.0 per cent increase over

2008.

• Volvo India plans to invest Rs 9.7 billion to set up a truck and bus manufacturing facility in

Malur, Kolar near Bangalore.

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

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

India, including Mysore in Karnataka.

• Delphi India was incorporated in 1995 as a wholly owned subsidiary of Delphi. It is a leading

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

other market segments.

• The company has a technical centre at Bengaluru, which is the largest technical centre

outside the US.

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

wool, which are the key raw materials required for textile

manufacturing units. The state produces 65.0 per cent of

India’s silk.

Karnataka is a major apparel sourcing destination for the

global market. The state accounts for 20.0 per cent of the

national garment production.

The state hosts over one million power looms.

There are approximately 0.38 million manufacturing units

engaged in the textiles and garments sector at the

organised and unorganised level.

It has 105 skill development centres and 240 private training

centres funded by the Department of Handloom.

In October 2013, the Cabinet of Karnataka approved the

New Textile Policy 2013-18.

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 sector has potential for future growth. Karnataka has an

apparel park at Dodaballapur near Bengaluru and other

mega textile parks in the other parts of the state.

Source: VITC-NCTI Trade Info, Global Investors Meet 2012

Some of the key players

• Gokaldas Exports Limited

• Karnataka Silk Industries Corporation (KSIC)

• Himatsingka Seide

• Shahi Exports Private Limited

The state plans to develop a 230-acre textile SEZ in

Hassan, dedicated apparel zones in Bengaluru Rural,

Tumkur, Kolar, Mandya, Belgaum, Bidar, and Dharwad, and

a Silk City in Bengaluru.

Bengaluru houses reputed international companies such as

Nike (India head office), Tommy Hilfiger (operated by Arvind

Murjani brands in Bangalore, India) and GAP (operates

through a liaison office, GAP International Sourcing India

Pvt Ltd).

Gokaldas Exports Ltd

KSIC

Himatsingka Seide

Shahi Exports Pvt Ltd

• Gokaldas is one of the largest garment exporters in the country. It commenced operations in

1979.

• Headquartered in Bengaluru, the company has 30 factories across Karnataka. The

company employs around 32,000 people. It has a manufacturing capacity of 2.5 million

garments per month.

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

a leading manufacturer of silk.

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

manufacturing silk goods right from raw silk yarn to silk fabrics.

• Himatsingka Seide was incorporated in 1985. It is a Bengaluru-based company and deals in

natural silk fabric.

• The company’s focus area is textile designing and manufacturing. It 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 over 2,500 products.

• 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. It has

manufacturing facilities in Delhi, Bengaluru, Salem and Tirupur

241 291 262

402

584

353

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3*

Karnataka, with a good agricultural base including a variety

of 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 70.0 per cent of the country’s

total coffee production. In 2011-12, the coffee production in

the state was estimated to be at around 221,000 metric

tonnes.

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.

A spice park is proposed to be developed at Byadagi in

Haveri district.

Sources: Visvesvarya Industrial Trade Centre, Global Investors Meet 2012

*Till September 2012

Some of the key players

• Hindustan Unilever Limited

• Nestle India

• Britannia Industries Limited

• United Breweries Group

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.

Coffee exports from Karnataka (US$ million)

CAGR:

24.8%

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. It

recorded revenues of US$ 4.9 billion during 2012-13. The company employs over 16,000

people nationwide.

• 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. It produces chocolates and

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

nutrition supplements.

• 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 had a

revenue base of US$ 1.1 billion in 2012-13.

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

referred to as the beer division of the UB Group and it is based in Bengaluru. It has

recorded a net turnover of US$ 659.0 million in 2012-13.

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

brands Kingfisher, London Pilsner and UB Premium Ice.

Sources: Global Investors Meet 2012, MRO India, NRI

Forum Karnataka, Karnataka Aerospace Policy 2012

Ministry of Civil Aviation, India

*At 2011-12 rates

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.

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

Belgaum.

Karnataka Aerospace Policy has identified an investment

potential of US$ 12.5* billion in this sector during 2013-2023

and plans to develop aerospace clusters in different regions

of the state.

Companies like Air India, Boeing and Jupiter Aerospace

have selected Karnataka for the development of MRO

facilities.

Some of the key players

• Boeing

• Hindustan Aeronautics Limited

• Airbus Engineering Centre

• BEML Ltd

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, Karnataka 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 9 research and development centres in 7 locations across

India; of which, 8 production units and 4 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 like defence, rail, power, mining and infrastructure.

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

activities related to aerospace applications.

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

The state has 20 institutes that are imparting AVGC related

training to more than 10,000 students.

Major suppliers to the industry like HP, AMD, NVIDIA and

Microsoft are located in Bengaluru.

There has been a considerable increase in AVGC business

outsourcing to Bengaluru.

A lot of content for global blockbuster animation movies like

Life of Pi, Harry Potter, Kung Fu Panda, Prometheus,

Pirates of the Caribbean, among others, was developed in

Karnataka.

There is a plan to set up AVGC parks, similar to the SEZ

model.

A plan has been formulated to set up a venture capital fund

and a centre of excellence to provide common resources for

IP creation.

An adequate extent of land is to be earmarked for the

AVGC sector in the proposed Integrated Information

Technology Investment Region (ITIR) near Bengaluru

International Airport.

Sources: PwC report estimates, Karnataka AVGC Policy

*Forecasted

AVGC: Animation, Visual effects, Gaming and Comics

Some of the key players

• Technicolor

• TATA Elxsi

• Zynga

• DreamWorks

Technicolor

Tata ELXSI

Zynga Inc

DreamWorks

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

revenues of approximately € 3.5 billion in FY 2012 (January to December).

• 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 it is headquartered in Bengaluru.

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

industrial design, animation & visual effects and systems integration.

• 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, among others.

• 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.

Sources: Technicolor, TATA Elxsi, Zynga, DreamWorks

80 out of the 120 companies engaged in chip designing in

India are located in Karnataka.

The state has the advantage of having relatively low cost

skilled/technical manpower as compared to 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 Policy is expected to provide for development of

three ESDM innovation centers that will provide complete

infrastructure with the requisite design tools.

ESDM Policy also plans to set up 7 high class ESDM

manufacturing clusters (EMC) to provide infrastructure

support including electronic manufacturing services and

component manufacturing by 2020.

Sources: Department of Electronics and Information Technology, GoI,

Department of IT, BT and S&T, Karnataka; ESDM Policy, Karnataka

Some of the key players

• Intel

• AMD

• Qualcomm Inc

• Nvidia

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.

• Intel Technologies India plans to invest Rs 6 billion for its R&D centre in India.

• 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 centers 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 facilitate top-to-bottom designing of advanced graphics

and digital media processors for a wide range of platforms.

Sources: Intel, AMD, Qualcomm Inc, Nvidia

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 amongst

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 94.1 million domestic tourists and 0.6

million international tourists in 2011. Tourist arrivals have

increased at a CAGR of 20.8 per cent during 2005-2012.

The sector contributes 15.0 per cent to GSDP of Karnataka;

plans are afoot to expand it to 25.0 per cent by 2020.

Sources: Global Investors Meet 2012, Department of Tourism, Karnataka,

Business Standard

Number of tourist arrivals in Karnataka (million)

25.24 36.7

38.36 37.53

33

38.53

84.68

94.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

CAGR:

20.8%

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.

• It has the highest number of approved health systems, multi-specialty health centres and

alternative health therapies in India.

Eco tourism • The state represents wide variations in topography – high mountains, hills and long

coastal stretches.

• It has 5 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.

Sources: Visvesvarya Industrial Trade Centre, Global Investors Meet 2012

Renewable energy contributes nearly 25.0 per cent of the state’s installed power capacity.

Karnataka is endowed with high renewable energy potential like wind, hydro, solar, tidal, geothermal energy resources etc.

The renewable energy potential for the state is estimated at 28 GW, primarily from wind, small hydro, co-generation and

biomass sectors.

The government has allotted projects of 16,380 MW, amounting to nearly 68.6 per cent of the total potential.

Renewable Energy Policy plans to set up renewable energy economic zones by procuring 10.0 per cent of the land of SEZs

and dedicating it for renewable energy.

It also mandates to keep aside 10.0 per cent of barren government land for renewable energy.

No Renewable

energy source

Renewable

energy potential

(MW)

Capacity

allocated

(MW)

Pending

applications

(MW)

Capacity

commissioned

during current

financial year

(MW)

Capacity

commissioned

cumulative

(MW)

Capacity due for

commissioning

(MW)

1 Wind 13,236 12,895.2 2,417.6 153.1 2,328.0 6,962.1

2 Hydro 3,000 1,760.6 0 17.9 724.3 1,760.6

3 Biomass 1,000 424.5 0 0 90.94 320.1

4 Waste to energy 135 56.4 0 0 0 56.4

5 Cogeneration 1,500 1,739.2 0 57.0 1,140.1 570.3

6 Solar grid 10,000 99 1,501.0 10.0 24 65

Grand total 28,871 16,974.9 2,056.2 237.9 4,307.4 9,734.4

Sources: KREDL, Central Electricity Authority, Karnataka Renewable Energy Policy

http://www.kredlinfo.in/reprogressreport.aspx

Karnataka has the largest wind energy potential of 13,236

MW in India.

The state has just 2,197 MW of installed wind capacity; this

provides a huge opportunity to harness the untapped

potential of the market.

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, Belgaum etc.

Karnataka wind energy density map Wind 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

Sources: KREDL, Global Investors Meet 2012

Solar Policy 2011-16 envisages to add 40 MW of capacity

each year.

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.

126 MW solar capacity is to be added in 2013-14.

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 requirement of

0.25 per cent.

Karnataka is the only state to have supported solar projects

under the REC (Renewable Energy Certificate) mechanism.

Karnataka solar resource map Solar energy

Source: http://solargis.info/doc/71

Sources: Karnataka Solar Policy 2011, Global Investors Meet 2012

Agency Description Contact information

Department of

Industries and

Commerce

(DIC)

• Anchor department for development/establishment of industries in Karnataka.

• Responsible for formulating and implementing industrial policies in the state.

No 49, South Block, Khanija Bhavan Race Course Road Bengaluru - 560 001

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

E-mail: commissioner@karnatakaindustry.gov.in Website: www.karnatakaindustry.gov.in

Karnataka Udyog

Mitra

(KUM)

• It is the single contact point for investors in the state.

• Considers/forwards proposals to concerned agencies and communicates status to investors.

• Monitors implementation of approved projects.

• Single point contact for information on various aspects including land availability, statutory approvals and coordination.

No 49, South Block, Khanija Bhavan East Entrance, Race Course Road

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

Fax: 91-80-2226 6063 E-mail: md@kumbangalore.com

Website: www.kumbangalore.com

Agency Description

District Level Single Window

Clearance Committee (DLSWCC)

• Functions under the chairmanship of respective Deputy Commissioners for industrial 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 Industries for 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 involving investment of more than US$ 10.9 million.

District Industries Centres

• Nodal agencies for approval of projects at district level.

• The primary focus of the agency is to promote small scale, village and cottage industries.

Other departments

• There are various sector-specific departments such as Department of Tourism, Department of Information Technology and Biotechnology, Department of Food Processing, Department of Textiles, Department of Mines and Geology.

List of approvals and clearances required Departments to be consulted

Prior to setting up the unit

Registration Department of Industries and Commerce Department,

Karnataka Udyog Mitra (Single Window Agency)

Allotment of land/shed Karnataka Industrial Areas Development Board

Permission for land use District Authorities

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

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

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

Registration Department of Industries and Commerce and respective sector

departments such as IT/BT/Tourism etc.

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

Cost parameter Cost estimate

Industrial land (per sq ft) US$ 4.5 to US$ 120

Power cost (per kWh) Industrial: US 8.3 cents to 11.5 cents

Commercial: US 11.8 cents to US 15.0 cents

Labour (minimum wage per day) US$ 2.3 to US$ 4.5

Water (per kilolitre)

Bengaluru Metropolitan Area:

Non-domestic: US 75 cents to US 125 cents

Industries: US$ 1.25

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

Bengaluru Water Supply and Sewerage Board, Karnataka Electricity Regulatory Commission

Aerospace Policy 2012

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

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

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

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

Karnataka Renewable Energy Policy 2009-14

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

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

generation. Read more

Objectives

Karnataka Tourism Policy 2009-14

• To make tourism Karnataka’s principal and largest economic activity as an employer, revenue-

generator and engine of growth, by being among the top two tourism destinations in India by

2016-17.

Read more

Objective

Karnataka Industrial Policy 2009-14

• To build a prosperous Karnataka through development of human and natural resources in a

systematic, scientific and sustainable manner.

Read more

Objective

State Policy for Special Economic Zones 2009

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

and the interests of land owners.

Read more

Objective

Karnataka Mineral Policy 2008

• 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. Priority will be given to the applicants

who propose establishment of industries for value addition within the vicinity of the mineral

bearing areas.

Read more

Objectives

Millennium Biotech Policy II 2009

• 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.

Read more

Objective

Infrastructure Policy 2007

• To provide a fair and transparent policy framework to facilitate the process of economic growth

and encourage public-private partnerships (PPP) in infrastructure.

Read more

Objective

Suvarna Vastra Neethi 2008-13 (Textile Policy)

• To achieve balanced, higher and sustainable growth in the entire textile value chain.

• To facilitate emerging units in critical areas such as production technology, market research, and

development in order to exploit global and domestic trade opportunities.

Read more

Objectives

Year INR equivalent of one US$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

2012-13 54.31

2013 YTD 59.38

Average for the year

Exchange rates

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