Karnataka scraps two industrial cluster projects: Report

Two out of the nine industrial clusters planned in Karnataka have been dropped from the "Compete with China" scheme, putting a dampener on the state's plans to attract investment.

The proposed tiles and sports goods clusters in Hassan and Tumakuru districts respectively have been dropped, according to a Mint report.

Some of the remaining clusters include toys at Koppala, textiles in Ballari, mobile phone components and electronics in Chikkaballapura, LED lights in Chitradurga, solar panels in Kalaburagi and agriculture implements in Bidar, the report said.

Moneycontrol could not independently verify the story.

Government officials told Mint that it was too early to review the cluster-based approach and might give it five years to see it generates results.

"We should be realistic enough to understand that not every cluster may succeed and some of them will fall by the wayside because there isn't enough traction in the market," Gaurav Gupta, principal secretary for the Commerce and Industries department of Karnataka told the paper.

Finding anchor investors, which is a crucial part of the plan, is the most difficult aspect of the project, officials told the publication.

The "Compete with China" scheme was introduced in July 2018 by HD Kumaraswamy, who was the Karnataka Chief Minister at the time.