Bengaluru, Aug 23 (IANS): Karnataka Large and Medium Industries Minister, MB Patil, on Friday strongly defended the government’s decision to execute lease cum sale deed of 3,677 acres of land to Jindal Steel Company, asserting that the transaction was in full compliance with the law.

Speaking on Friday, he emphasised that the sale followed a government order issued after a court directive and a subsequent Cabinet resolution, leaving no room for any wrongdoing.

Addressing the press, Patil clarified, "We have not provided any concessions to Jindal. The company paid the market price, and all government regulations were strictly followed.

“The same rules that apply to over one lakh industries in the state have been applied in Jindal’s case as well."

He added that the issue had unnecessarily dragged on for nearly nine years.

Looking ahead, Patil mentioned that a global investor conference would be held in Bengaluru in six months.

He highlighted that Jindal has invested Rs 90,000 crore in the state and created 50,000 jobs.

"In such a scenario, it is crucial that no wrong message is sent to potential investors by the government," he asserted.

Patil further explained that, as per the industrial policy, entrepreneurs provided land by the government were required to utilise at least 51 per cent of it within ten years while keeping their operations running.

The sale contract is then executed as per policy, and Jindal has fully complied with these requirements.

“We face stiff competition in the industrial sector from Tamil Nadu, Maharashtra, Gujarat, Andhra Pradesh, and Telangana. Many states are offering free land to industries," Patil stated.

He also expressed confusion over why some people in the past opposed the lease-cum-sale of land to Jindal.

Patil clarified that there had been no protests against Jindal by the Congress in the past, noting that earlier objections were raised only against former minister and mining baron Janardhana Reddy.

In response to a query, he confirmed that no mining activities were taking place on the land that has been decided for sale to Jindal.

Commenting on the issue, Home Minister G. Parameshwara clarified, "We had previously opposed the allotment of land to Jindal and raised questions regarding it. However, we have since received answers to all those questions. The court has given its directions, and after the matter was re-examined, the price of the land was fixed according to the rules. Following this, the government is convinced."

"We are preparing for the Global Investors' Meet, where we will invite industrialists from around the world and offer them concessions on power tariffs, water, and land allotments. These concessions should also apply to industries that are already operating here, right?" he questioned.

"We need to retain the industries that are already established here and also attract new ones. The Jindal or JSW group has invested thousands of crores. I believe they are the largest investors in Karnataka compared to any other industry, and they employ around one lakh people.

“If we discourage such industries or fail to offer those concessions and encouragement, they may relocate to other states. To prevent this, we need to provide them with incentives," he stated.

"In Andhra Pradesh, Telangana, and Tamil Nadu, land allotments are often made at no cost. If we don't provide similar incentives, those states will. They will offer land for free.

“Previously, when there was a small incident in Bengaluru, many industries hinted through the CII that they might move out of the state. Tamil Nadu and Telangana openly invited companies to shift to their states, promising better facilities," he pointed out.

"In this competitive world, we must provide concessions. That is why we have given them these incentives," he emphasised.

"The BJP at that time did not brief us adequately on the matter, which is why the Congress party initially opposed the proposal. Had they convinced us, we would have agreed to it.

“It seemed that the BJP lacked the intention of developing industries back then," he concluded.

The Karnataka government approved the allotment of 3,667 acres of land to Sajjan Jindal led JSW Steel Ltd on Thursday.

The decision raised eyebrows as the Congress opposed this allotment during the tenure of the BJP government.