Shimoga's hopes had soared after the 2010 Global Investors Meet as it was promised Rs 952 crore in investments leading to creation of 12,500 job opportunities. But the last couple of years have been a dampner as of the eight companies that had signed MoUs for investing in the district only one actually established its unit here, while another moved to Chikmagalur district.
Former president of the District Chamber of Commerce and Industry, K.V.Vasanth Kumar, blames the lack of progress on dearth of suitable land for establishing industries in the district, corruption in the government agencies responsible and political interference in the process. “The government failed to execute the land acquisition process the way it should have. The Karnataka Industrial Areas Development Board (KIADB) does not maintain transparency when implementing its projects and rampant corruption among its ranks discourages industrialists from investing in the district. What makes it even worse is the politics involved in setting up major industries here,” he regrets.
The district’s fortunes seem to have dovetailed with the resignation of former Chief Minister, B.S.Yeddyurappa , who was keen on strengthening its industrial base and took interest in developing its infrastructure to attract investors, say observers. Local officials explain the companies which have backtracked cannot be forced to reconsider as the agreements they had signed have no legal binding. Sadly, therefore, Shimoga has only investment by the Shahi Exports Company to show for the last GIM.