Policy Next Summit | 'Shocking that Karnataka lost out to Tamil Nadu in landing investments from Ather, Ola'

From left: Aarin Capital chairman Mohandas Pai, Aequs' chairman and CEO Aravind Melligeri, Moneycontrol start-up and tech editor Chandra R. Srikanth, Congress spokesperson Rajeev Gowda, Federation of Karnataka Chambers of Commerce & Industry (FKCCI) president B V Gopal Reddy and TeamLease co-founder Rituparna Chakraborty at Moneycontrol Policy Next Karnataka summit held in Bengaluru on May 5.

Karnataka, and specifically its capital Bengaluru, "shockingly" lost out to Tamil Nadu in landing investments from key players in the electric vehicle industry such as Ola and Ather, Congress spokesperson Rajeev Gowda said at Moneycontrol's flagship Policy Next event held in Bengaluru on May 5.

Gowda was speaking on the 'Make in Karnataka' panel at the event."Quite a shock that Ola wanted to establish manufacturing in Hosur. They’ve benefited from Bangalore and its offerings, we should’ve done more to keep them in the state," he said. The panel was moderated by Moneycontrol start-up and tech editor Chandra R Srikanth.

"It is quite shocking when Ola decided to put up its manufacturing in Krishnagiri. Krishnagiri is very close to Bengaluru and a manufacturing (facility) is not just land, it has much more including job creation and others which will be tapped from the neighbouring areas," Gowda added.

Aarin Capital chairman and former board member of Infosys Mohandas Pai said successive governments did not pay attention to their policies towards the industries. The Congress came up with the electric vehicle policy, but did not effectively implement it, Pai claimed, adding that the BJP, which came to power three years ago, "did not pay attention" as well.

Manufacturing outside Bengaluru

Other panelists included TeamLease co-founder Rituparna Chakraborty, Federation of Karnataka Chambers of Commerce & Industry (FKCCI) president BV Gopal Reddy and Aequs' chairman and CEO Aravind Melligeri.

Meligeri pointed out that manufacturing in Bengaluru was expensive, and recounted the time when he took the decision to open a manufacturing facility outside the city.

"Every investor asked me to move to Gujarat...However at the end of the day, job creation and improving the economy from here is satisfying as an entrepreneur," Meligeri said.

Congress' Gowda said, "We’ve been putting in place efforts to build industrial zones in places like Kolar but they’re limited to just on the outskirts of Bangalore. We need to go deeper, and focus on regional strengths that places like Belgavi are  offering."

Teamlease co-founder Rituparna Chakraborty said, "Most of the enterprises are in 5-6 districts in Karnakata. We need to have more industries across districts here which will help accelerate job creation."

Politics and beyond

With Karnataka state Assembly elections around the corner, panelists also talked about their aspirations from the next government that is going to be formed in terms of job creation and attracting investments.

"Look at the manifestos of political parties for Karnataka….thousands of crores for subsidies, monthly incomes. Where is the focus on jobs, human capital, higher education, skilling? Zero," Pai who was also a former board member of Infosys said.

"We need to focus on jobs and infrastructure. Karnataka is not Bihar or UP to solve problems with money. We have moved past that. It needs infrastructure and jobs," he added.

Congress' Gowda claimed, "We’re going to be a government that is going to source ideas to support and facilitate growth, so that will make it easier to do business and fill gaps. The government needs to do a lot and we’re ready for that."

"We’ll first do a survey of what needs to be eliminated, laws and regulations. It’s been done at the Centre and should be done in the state," he added.