BANGALORE: The Minister for Industries and Infrastructure, P.G.R. Sindhia, told the Legislative Assembly on Tuesday that the gauge conversion of the Mangalore-Hassan railway line will be completed by September-end.

Intervening in the debate on the demand for grants of the Commerce and Industries departments, Mr. Sindhia said Rs. 40 crores has been set aside for the gauge conversion project. The broad-gauge rail link between the two cities will facilitate the development of the Malnad and coastal regions, he added.

Rs. 191-crore project

Mr. Sindhia said the Centre has sanctioned special economic zones (SEZs) for Mangalore and Hassan. The SEZ in Hassan will be established on 2,500 acres of land. The project, which is estimated to cost Rs. 191 crores, is a joint venture between the Karnataka Industrial Development Board (KIADB) and a strategic partner. A sum of Rs. 2 crores was released in 2004-05. The State Government has urged the Centre to sanction four more SEZs to the State, he said.

The Minister said the KIADB has proposed to establish a product-specific SEZ for textiles in Hassan and a sector-specific SEZ for information technology in Mangalore, for which investment of Rs. 33 crores and Rs. 44.83 crores, respectively, are needed. The KIADB has initiated acquisition of 500 acres of land in both places.

These zones are in addition to the SEZs proposed in Hassan (general purpose industrial complex) and Mangalore (petrochemical complex), according to the "performance budget" of the Department of Commerce and Industries for 2004-05.

For export promotion

The Government has approved the establishment of an Export Promotion Industrial Park (EPIP) in Mangalore with an investment of Rs. 26.52 crores. The KIADB has proposed to set up an EPIP at Ganjimutt, 20 km from Mangalore, and 201.92 acres of land has been acquired in Mogaru and Badagaulipady villages.

A sum of Rs. 10.27 crores has been paid as compensation to the landowners.

Referring to the international airport project at Devanhalli, Mr. Sindhia said the Government has signed all agreements with the Airport Authority of India. The work on the airport commenced on July 1.

Lack of infrastructure

Earlier, Yogish Bhat (Bharatiya Janata Party) said lack of infrastructure is impeding industrial development in Mangalore, and urged the Government to speed up the Hassan-Mangalore gauge conversion work.

Basavarajaraya Reddy (Congress) compared the economic development of India and China. China has invested in the development of infrastructure and industries, which has generated employment, he said.

During the debate, the Chief Minister, N. Dharam Singh, said socio-economic and cultural factors in the two countries are different.

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