Karnataka Inks MoUs Worth ₹22,000 Crore with Seven Companies

On the second day of the World Economic Forum in Davos 2024, Karnataka, India, forged significant partnerships by signing Memorandums of Understanding (MoUs) worth ₹22,000 crore with prominent industry leaders, including Microsoft, Web Werks, Hitachi, and four other companies. These collaborations signal a transformative phase for the state, ushering in advancements in technology, infrastructure, and economic growth.

MB Patil, the Minister for Large and Medium Industries and Infrastructure Development, engaged in fruitful discussions with key players such as Sony, HP, Nestle, Honeywell, Lulu Group, Inox Group, Takeda Pharma, Coinbase, Tillman Global, BL Agro, and others during the event.

Volvo, one of the participating companies, outlined ambitious growth plans for Karnataka, intending to establish a truck plant in Hoskote, a bus plant, and expand its footprint in construction equipment. Aligned with broader economic development goals, Volvo's focus in Karnataka extends to clean mobility initiatives, with efforts to encourage the company's participation in the realms of cars, buses, and trucks. Volvo is actively involved in hydrogen research, particularly in fuel cells onboard vehicles, with ongoing tests aimed at converting vehicles from internal combustion engines in India.

Future initiatives include the introduction of liquefied natural gas (LNG) with a dual-source system for buses, providing a range of 500 km to 700 km. The Karnataka government is committed to providing policy support for widespread adoption of LNG vehicles. Volvo, in turn, expresses its commitment to exploring future technologies, including LNG, battery electric, and hydrogen fuel cells for commercial vehicles.

The MoU between the Government of Karnataka (GoK) and Microsoft outlines a digital skilling initiative targeting underserved youth in India. This initiative, named Microsoft RISE, aims to deliver 70 hours of virtual instructor-led training on digital productivity, employability, entrepreneurship, and communication skills. The program will particularly focus on young girls/women, job seekers, individuals with disabilities, and those in regions with low workforce participation, aspirational districts, remote, and tribal areas. Microsoft will collaborate with its nonprofit partner AISECT for the successful implementation of the digital skilling program.

Inox Air Products is actively considering expanding into Karnataka, aligning with its strategic growth objectives. The potential venture in Karnataka includes the establishment of an Industrial Gas manufacturing facility worth ₹150 crore to supply electronics manufacturers in the North Bengaluru region.

The Lulu Group is set to make significant strides in Karnataka's Vijayapura district by investing ₹300 crore in a dedicated food processing plant for export. With a vast network of over 250 malls, the Lulu Group already sources substantial quantities of produce from Karnataka, exceeding 200 tons monthly. The group aims to further boost its export capacity by focusing on the northern Karnataka region, emphasizing the cultivation of diverse crops such as eggplant, okra, guava (white and pink varieties), chickoo, capsicum, and chilies.

HBL