Explore alternative capital to decongest Bangalore: BCIC

Our Bureau Updated - June 20, 2014 at 08:53 PM.

‘A new capital will create significant economic growth and decongest Bangalore’

The Karnataka Government should explore the possibility of an alternative capital to decongest Bangalore.

Addressing reporters, Bangalore Chamber of Commerce and Industry (BCIC) President HV Harish said that during a recently held Karnataka Economic Summit, the former State Chief Secretary A Ravindra suggested that having a new capital will create significant economic growth and ease the congestion which Bangalore is facing now.

Location unidentified

The capital should be shifted to a location close to the middle of the State as it will be within the reach of everyone across Karnataka. Harish, however, clarified that this was just a suggestion and no specific location had been identified or even discussed.

“It could be a city around which you can build a capital or create a brand new one. But the first option makes more sense,” he added.

Supporting the suggestion, Harish said, “Why not explore the idea? You look at the economic boost the State will get of building the new location. If you look at Bangalore, bulk of the centre of Bangalore is prized and is occupied by the government.”

“If somebody can assess the cost of the land occupied by the government in the heart of Bangalore city, it will be more than adequate to fund building two more capitals,” he said. “If you can’t move the industry, then you can move the government,” Harish pointed out.

Cluster development

AN Chandramouli, Senior Vice-President, BCIC, said the State government has been asked to create cluster of ancillaries around large OEMs to improve supply-chain growth as Hyundai has done in Chennai.

There is huge potential to create many clusters in the state. BCIC has suggested to the government to identify and promote the cluster more aggressively.

As a first step, BCIC has partnered with HAL to create aerospace cluster in Bangalore. “We have roped in HAL to initially help in creating manpower base and later move into manufacturing,” said Chandramouli.

Labour laws

BCIC after studying the labour law changes made by Rajasthan has urged the Karnataka Government to adopt a few of them for good industrial relations.

“Several amendments have been proposed to make the law business- and labour-friendly and encourage more investment inflow. BCIC has urged the Karnataka Government to look into them and work on similar changes so that we do not lose out as an investment generation and the consequent employment generation,” he added.

Published on June 20, 2014 15:23