Karnataka Seeks GIFT City Model, Fast-Track Approvals

Bengaluru, Jun 28 (PTI) The Karnataka government on Friday made a strong pitch for establishing a dedicated Central Business District -- modelled on the lines of Gujarat's GIFT City on the Sabarmati banks in Ahmedabad -- in the state, besides seeking faster clearance for multiple projects across sectors.

Ahead of the Union Budget presentation by the Narendra Modi government in its third term, Karnataka IT&BT Minister Priyank Kharge wrote to Union Finance Minister Nirmala Sitharaman and Union IT, Electronics and I&B Minister Ashwini Vaishnaw with a "wishlist" seeking Centre's attention.

In a statement by the minister's office, Kharge said that Karnataka wants to set up a Central Business District that will act as a global financial and IT hub.

GIFT City or Gujarat International Finance Tec-City was initiated with a significant investment with initial estimates of USD 1 bn over 886 acres of land. GIFT City consists of a conducive multi-service SEZ and an exclusive domestic tariff area (DTA), with areas split in a 1:3 ratio.

Kharge highlighted that Karnataka has a vibrant economy with IT, BT, aerospace, automotive, textiles, and heavy industries forming the cream of the investment pie.

"The state is strategically located, and is well-positioned to replicate a similar business hub in its bosom. Variously described as tech hub and Silicon Valley of India, Bengaluru counts semiconductor and electronics domain, fintech space, enterprise tech, e-commerce and ed-tech as emerging fields of interest.

"A GIFT City in Karnataka will boost economic growth and create numerous employment opportunities and attract foreign investments," he stated.

The minister said Karnataka's IT credentials are beyond compare or dispute, with the state standing third in the country with USD 4.5 billion worth of electronic exports, is the most innovative with 46 per cent of the national share, and contributing 10 per cent to India's industrial output.

"The state is home to more than 300 export-oriented manufacturing units, has the largest chip design hub in India, housing 100+ fabless chip design houses and is a leading maker of aerospace and defence equipment in India. It also houses many automobile manufacturing, medical devices manufacturing, heavy electrical machineries companies," he added.

He also noted that to upgrade the existing ecosystem to attract investments in the Electronics System Design and Manufacturing (ESDM) sector, Karnataka is developing two land parcels -- Kochanahalli industrial area in Mysuru district and Kotur-Belur industrial area in Dharwad district -- for setting up a cluster under the Union government's Modified Electronics Manufacturing Cluster (EMC 2.0) scheme.

"We are looking at setting up two more EMCs in and around Bengaluru," Kharge said.

The minister made a strong appeal to the Union government to fast-track approvals as investors are waiting for the final land allotment. Key projects in the list are Adinarayanhosahalli in Bengaluru Rural district, and Vasantanarsapura in Tumakuru district, he stated.

The minister has sought funding support from the Union government that could be channelised towards galvanising infrastructure upgrade, developing industry-specific skilling programmes and bridging the gap between skill requirement and disposable talent pool present in the state, research and development initiatives, among others, the statement added.