Karnataka Secures Rs 6,450-Crore Investment Commitments From Japan, South Korea

The Karnataka government has secured investment commitments and Memorandum of Understanding worth Rs 6,450 crore, from companies based in Japan and South Korea. 

The investments are potentially being made by six major companies and are expected to create over 1,000 jobs in Karnataka. The investments are flowing in after the Karnataka Large and Medium Industries and Infrastructure Development Minister MB Patil-led delegation concluded a two-week visit to Japan and South Korea. 

Osaka Gas Co. has committed to expanding its gas distribution infrastructure in the state, with an investment of $600 million (Rs 5,000 crore) over the next five years. DN Solutions has signed an MoU worth Rs 1,000 crore to establish a manufacturing facility for precision tools and automation systems, expected to create approximately 350 jobs.

Aoyama Seisakusho, a Japanese auto components supplier has committed Rs 210 crore to set up a manufacturing facility in the Japanese Industrial Township. Further, Daiki Axis, HyVISION, and EMNI Co. have signed MoUs worth Rs 240 crore collectively, focusing on environmental equipment manufacturing and battery cell storage and testing.

Sumitomo Heavy Industries has announced its plans to open a head office in Bengaluru by the end of 2024 and enhance its collaboration with key customers like Siemens AG and General Electric. Beyond immediate commitments, the Karnataka delegation has identified leads worth $3 billion (Rs 25,000 crore) across the automotive, electronics, and energy solutions sectors. 

The Karnataka government is actively looking to drum up investments in the state. Recently, a delegation of Department of Electronics, information technology, biotechnology, led by state IT minister Priyank Kharge, visited UK, France, Switzerland, and Germany to attract investments. Following the visit, Kharge had said that the state is expecting investment up to $6.2 billion from European companies, and the expected investments in the GCC sector alone will generate 35,000 to 45,000 jobs.