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Setback for ‘Brand Bangalore’

With President’s rule being clamped on Karnataka, trade and industry are worried about its impact on the investment climate in the region. With Governor Rameshwar Thakur expected to run the administration, perhaps with the appointment of a couple of advisers, there can be no political direction or policy till the elections are held and a new government assumes office. Industry sources, which have huge stakes in Bangalore and Mysore, say that many of the decisions tak en recently by the H. D. Kumaraswamy government may soon be put on hold.

“We expect some of the investment decisions already made by companies and foreign investors to be deferred for some time to ascertain the political climate in future,” a Confederation of Indian Industry functionary reasons.

He says a period of President’s rule may do the State some good in “depoliticising the administration,” but it may not be the right time for investments or industry. Over the past few years, trade and industry have had completely different vibes with the government in power — it was series of changes from the S. M. Krishna regime to that of Dharam Singh, and subsequently of Mr. Kumaraswamy.

“We do not blame any government or leader, but the focus or priority of each regime changes with the ideology and vote base of the party in question,” he explains.

What industry expects to do in the immediate future is to “set the house in order,” and brief the Governor on the entire situation. “We hope some of the recently created problems can be sorted out and some of the decisions reviewed or stalled till a popular government returns to power and takes a final view on them. As this crisis was brewing for a month, in the week or fortnight before the October 3 deadline, all ministers were busy clearing all pending files, some of those decisions may have to be reviewed,” according to the CII source.

Some of the major recent decisions and schemes include allocation or utilisation of land in and around Bangalore — a very sensitive and controversial issue. Industry is waiting to see how the Governor and the President’s rule will handle such decisions of the Janata Dal (S)-BJP coalition regime. Industry sources also say that developments in Bellary and the highly sensitive iron ore sector will also come under the scanner, though that industry was “quite capable of taking care of its interests with any administration.” The sources hope that the people will provide a clear mandate to one party and ensure a stable government next time. Till then, investors may keep off Bangalore.

V. JAYANTH

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