Peoples' Solidarity Concerns along with various other organizations is
orgnanising a protest against Global Investors Meet - demanding to Stop
Auctioning of Karnataka and follow the path of Sustainable Development.
Please participate and inform all your friends.

VENUE: TOWNHALL
DATE : 3RD JUNE 2010
TIME: 5.00 PM

**

*OPPOSE AUCTION OF KARNATAKA*

*Demand People Friendly & Environment Friendly Development*

The Chief Minister of Karnataka has announced that the 2 day Global
Investors Meet in Bangalore will bring 3 lakh crores of investment as well
as around 3 lakh new jobs. The promise of 3 lakh jobs to be created by the
GIM and the prosperity it will bring to Karnataka does not appear to be
true. Read below to find out the real costs and real facts of the GIM.

*False Promise of Investment and Job Creation*

As per government data(from Department of Industrial Policy & Promotion, (*
http://dipp.nic.in/fdi_statistics/india_fdi_index.htm*) the total FDI
approved in Karnataka between 2000- 2010 is around 30,000 crores and the
actual amount invested less than that. So how will 3 lakh crores be realised
in 2 days, if the last 10 years brought in only 30,000 crores?

Further , the 3 lakh crores were supposed to bring in 3 lakh jobs. Now if
the actual amount will be much lesser, how many jobs actually get created?

Also, here 1 job is being created for an investment of 1 crore (3 lakh
crores = 3 lakh jobs)

However, for the same 1 crore which is invested in the small and Medium
Industries , 20 jobs can be created.

*Examples of Existing Investments and jobs created in Karnataka*

The Government has approved MS Zuari fertilisers and chemicals ltd. to
establish a urea plant in Mastihole Village, Hukkeri Taluk, Belgaum with an
investment of 4565 crores. It is supposed to create1560 jobs. *It means an
investment of 3 crores for one job! *Similarly, the* *Government has
approved a proposal to M/S India Cements limited to establish a 2 MTPA
Cement plant and 60 MW coal Based thermal Power plant at Ganapur,
Burugupalli of Chincholi Taluk, Gulbarga District with an investment of 850
crores. The promise of job creation is only 175. *It means that 5 crores are
invested to create one job.* (Sources : Government Orders - CI 27 SPI 2010,
CI 32 SPI 2010)

*Jobs Lost Due to the GIM*

The government has already acquired 50000 acres and is in the process of
acquiring another 100000 acres. Hence a total of 1,50,000 acres are being
acquired. Even by conservative estimates, farming on 1 acre of land can
support at least 5 people. Hence the 1,50,000 acres of land being acquired
will support atleast 7,50,000 people! Now once this land is acquired, all
these jobs are lost. Even assuming that the GIM really creates 3 lakh jobs
and that all these jobs(including managers, technical experts etc) are
distributed amongst those who lost jobs, *it still leaves 4.5 lakh people
jobless as a result of the land acquisition for the GIM.*

In its defense the government has stated that mostly non-agricultural land
has been required. However seeing the gazette notifications for the land
acquisition, we see that the government is lying. For instance, one of the
Government Orders ( CI66SPQ2010, Bangalore , dated - 17 Feb 2010) says that
1,542 of land has been acquired in Bailahongala, Belgaum. *Out of 1,542
acres acquired just 25 acres of land is barren, the remaining 1517 acres or
99.8% land acquired is agricultural land.*

*What Else are the People of Karnataka Losing?*

There is a net loss of employment due to GIM. In addition, we will also lose
valuable capital, water and electricity. The 3 lakh crore investment will
not come directly from private firms. A large part of that will be from bank
loans. Money in the banks consists of the savings of people of the state or
is tax money which is with state owned banks. So in effect it our own money
being diverted to them and coming back in the form of FDI.

*All these industries will require water and electricity. No new water can
be created. So even though there is an existing water crisis, Billions of
Litres will be divested to these new industries. We also already have an
electricity crisis with many rural areas having 16 hour power cuts. Where
will we get more power to supply to these industries. It is also a matter of
shame that many of these destructive industries are provided massive
subsidies of water and electricity, while the farmers in the state are
committing suicide*.

*Karnataka for Auction?*

Hence, by organizing the GIM the state government has sold Karnataka, piece
by piece. People voted for a government to rule the state, and not sell the
state and its resources.The entry of Special Economic Zones will be a major
blow to the lands, environment and labour relations of the people of
Karnataka. Already Orissa stand as a glaring example for us to understand
what is going to happen in the investment friendly states like Karnataka.
POSCO and Tatas have been targeted by the activists for their role in police
firing and lathi charge on innocent people in Orissa. *Over 100 people
resisting POSCO in Orissa were injured recently and even their medical care
is being denied. Over a dozen people were killed by police firing in
Kalinganagar earlier and recently the police killed one more adivasi. We
strongly object the entry of such a model of development which sheds human
blood instead of human welfare. *

*If the state of Karnataka Is going ahead with the this kind of a
development paradigm at the cost of the life and livelihood of the Dalits ,
Adivasis and the Farmers , the Global investors meet raises a set of
questions like what will be social, environmental, economic and political
costs involved in this entire process? Why is this whole process being
rushed through without public consultations and political consultations ?*

In order to achieve overall inclusive development, we need to look at it
from the perspective of increasing the purchasing power of the people of the
state. However, these foreign direct investments will actually decrease the
purchasing power of the people. Keeping this in mind, people from across the
country need to oppose this form of investor led development. We demand that
the state works towards a development approach which is based on
strengthening local economic systems. The GIM however does not do anything
to strengthen the local economic system or the people and hence the
government should immediately stop this mode of development. It is the
responsibility of all of us, the people of Karnataka to force the government
to abandon this destructive mode of development. We appeal to all citizens
of Karnataka to join this resistance for a people friendly and environment
friendly development policy. Ultimately, it is matter of our jobs, our
money, our natural resources and our lives.

* *

*Peoples’ Solidarity Concern, Social Action Committee, Stree Jagruti,
Sichrem, SCM, Radical IT Domestic Workers Union, Alternative Law Forum,
Pedestrian Pictures, NAPM, Janasahayog, National Alliance for Peoples
Movement, Karnataka Janapara Vedike, Samanatha Mahila vedike , Swabhimani
Dalitha Shakthi, PUCL-Karnataka
*

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