When ORR hits the headlines, more often than not, it is for the wrong reasons. Companies along the 17-km tech corridor, which contributes the largest share to the State’s IT revenue, have been complaining for long about the pothole-ridden roads and peak-hour traffic congestion.
When Nara Lokesh, Minister for Information Technology, Electronics and Communications in Andhra Pradesh, invited companies in Bengaluru to move to his State, the invite was met with sharp response from his counterpart in Karnataka, Priyank Kharge, and resulted in a volley of exchanges. The Hindu caught up with Mr. Kharge, Minister of Electronics, Information Technology & Biotechnology and Rural Development & Panchayat Raj, on the issue.
Tech companies on ORR have been complaining about infrastructure issues for a long time. Many now seem to be looking for alternative locations. How do you view this?
I think it’s a problem of any city growing rapidly, and not limited to Bengaluru.
The pace at which Bengaluru is growing is immense. Last year, the Union government projected our growth between 8.3% and 8.7%, but we grew at 10.3%. Savills Growth Hubs Index reports that we will be outpacing our global peers in urbanisation, economic growth, and innovation by 2033. We are tipped to grow at a whopping 8.5% till 2035.
We are the ones creating the jobs. More than 40% of the population of Bengaluru are migrants. We have the highest registrations of two-wheelers in India – nearly 2.3 crore.
Infrastructure policies play catch-up to such rapid growth. We are doing all we can to ensure that Bengaluru has a great infrastructure and the right ecosystem for people to thrive in the shortest possible time. That is why we have given ₹7,000 crore to uplift Bengaluru’s infrastructure, especially with respect to mobility. Our focus is heavily on building faster public transportation through metro. We have added e-buses and are improving the last-mile connectivity. It is a challenge, but it is also a constant work in progress. And I think it’s a good problem to have because that shows the potential of Bengaluru.
But is there a risk of flight of capital and attempts by younger, hungrier States to woo the industry here?
It’s not easy. A post on Facebook or X doesn’t mean investment is going out or the talent pool is shifting base. We already have the infrastructure and we are improving on it. Younger States, or the hungrier ones, as you call them, need to build up the infrastructure.
Take the case of any neighbouring State. While some have the infrastructure and are improving it, trying to build the ecosystem that we have nurtured is impossible. It has taken us 30 years.
From being the IT-enabled services ecosystem, we are now one of the leading innovation ecosystems in the world. We are the fourth largest technology cluster and number eight in the world regarding start-up ecosystem. Out of 110 unicorns, more than 47 are from Karnataka. We contribute 21% of the national bio economy and 65% of aerospace defence. We are top in global capability centres with over 900 centres and units. More than 400 of the Fortune 500 companies have their headquarters here.
Around 40% of the engineering and R&D talent pool of the entire nation is from Karnataka. We have a count of people-friendly and investor-friendly policies. We have the first-mover advantage. So, while younger States are free to do all they want, we are hungrier than them.
We enjoy the leadership position, but our appetite is huge. There’s no resting. I don’t want to be a national player when we have the potential to be a global player.
Are you saying infrastructural issues cannot result in flight of capital?
I’m duty-bound to give good infrastructure to my people as a government. I think 75.5% of the youth in Bengaluru are of working age. So, you can imagine the expectations of the people. We are duty-bound to meet those expectations, and we will do it.
What are the specific initiatives that the department is looking at?
People are free to express their opinions online. While that’s a good opportunity for the government to pull up its socks, it does not mean that people are moving out of the city. Weatherwise or otherwise, we are any day better than any city.
Deputy Chief Minister D.K. Shivakumar has taken this up on himself. He is giving priority to the mobility infrastructure and is looking at solutions even from the private sector to build a sustainable city. Areas that are paying high taxes and generating employment will be considered as brownfields and such areas will have all the civic amenities.
He’s also mulling over forming a small task force that will be engaging with people, associations and tech parks.
Is congestion tax something that the government is looking at?
I don’t think so. I don’t think that will be the solution. While cities like London may have it, we need to acknowledge that every city is different.
There were reports suggesting that the ban on bike taxis added to the congestion. Will the ban be reviewed?
The government is extremely serious about the gig economy and we have passed the The Karnataka Platform Based Gig Workers Bill. With respect to the bike taxis also, it’s just a matter of time before we get it sorted out since it’s in court currently. The Transport Department is looking at it, and it’s a matter of time before we form a policy for that.
Companies in ORR now seem to be moving or expanding to other parts of the city such as Devanahalli.
Beyond Bengaluru is a policy of the government. It is not just Devanahalli, but people are moving to Mangaluru, Mysuru…
Mangaluru exports close to ₹ 3,500 crore. Hubballi and Belagavi are exporting close to ₹3,000 crore. Mysuru is exporting ₹3,500 crore in 90 services. I’ve had requests from software companies telling me to build grade-A buildings in Mysuru, Mangaluru, Belagavi, Hubballi, and Dharwad. We are coming up with common instrumentation facilities in Kalaburagi and Belagavi. We are doing everything we can to ensure that we build clusters across the State.
Would that also mean Bengaluru is saturated?
Absolutely not. We have extended Bengaluru South till Ramanagara. Bengaluru goes all the way till Vasanthanarasapura in Tumakuru where the Japanese are building products and building solutions for the global clients. So, no, Bengaluru is not saturated, and we have the appetite.
