IANS

New Delhi, Jan 8: Karnataka has cleared 38 big-ticket projects worth Rs.138,000 crore ($27.5 billion), and hopes soon to finalise the mega investment proposals from global steel makers ArcelorMittal and South Korea's Posco.

Speaking to reporters after a meeting with the London-based chairman of Arcelor Mittal, L.N. Mittal, Karnataka Chief Minister B.S. Yeddyurappa said these projects collectively have the potential to generate employment for 92,000 people in the state.

"Nearly 60 percent of these investments would be in north Karnataka," said Yeddyurappa, explaining that the primary focus of his government was to ensure development in the most backward regions of the state.

AcelorMittal wants to invest Rs.30,000 crore ($6 billion), while Posco plans a Rs.32,000 crore ($6.4 billion) integrated cement plant, both intending a capacity of six million tonnes a year. Mittal's firm has also proposed a 150 MW captive power plant.

State government officials said two other steel makers - Surya Steels and Adhunik Metaliks - intended similar units in the state at an investment of Rs.20,000 crore ($4 billion) and Rs.5,500 crore ($1.1 billion) respectively at Bagalkot and Raichur in north Karnataka.

Speaking about his meeting with Mittal, Yeddyurappa said he invited the steel tycoon to become the chief guest at the inaugural global investors' meet June 3-4 in Bangalore to make the state one of India's best developed states.

"The Mittals have come forward to set up a mega steel plant in Karnataka with investment of Rs.30,000 crore with potential for direct employment to 10,000 people. I have cleared the project in principal and hope to sign a memorandum of understanding in 90 days."

ArcelorMittal representatives have already visited Bagalkot, Bijapur and the iron ore-rich Bellary district for land. Last month, Karnataka's Additional Chief secretary M.R. Sreenivasa Murthy had said the land acquisition would be completed by June.

The other investment proposals spelt out by the state government include:

- Rajashree Cement's Rs.3,000 crore cement plant in Gulbarga

- Reliance Industries plan for a gas pipeline between Chennai and Bangalore

- GAIL India's gas pipeline from Dabhol to Belgaum and Bangalore

- Shell's research centre with an investment of Rs.1,376 crore

- Zuari's Rs.4,565-crore urea plant at Belgaum

"We are keen to attract investments to Tier-II and Tier-III cities in order to achieve balanced regional development. Infrastructure development in both urban and rural areas has been given special thrust to realise this objective," Yeddyurappa said.

"We are also keen to develop exclusive zones for steel, cement, food processing, auto, information technology and ready made garments," the chief minister said, adding that special provisions have been made to ensure adequate electricity.