DBT Bureau
Bengaluru, 9 December 2024
Lenskart’s decision to invest Rs 1,500 crore in Telangana for setting up a mega manufacturing capacity after dropping its plans to do so in Bengaluru has created a furore in Karnataka.
Aarin Capital chairman TV Mohandas Pai on Monday said this is a blow to Karnataka and urged Industries & Infrastructure Minister MB Patil to intervene with Lenskart and save the investment it had originally planned for Karnataka.
However, Karnataka’s Industries Minister, MB Patil said, “The state government cannot and should not provide incentives more than the planned investment. These practices raise concerns on the fundamental viability of such projects.” Without naming the company, he said that Lenskart was asking for undue concessions from Karnataka government, which the company was not in a place to provide.
Meanwhile, reports suggested that the company was asking for 100% subsidy on its investment, which was not acceptable to Karnataka government given Lenskart is a private enterprise. It could have sent a wrong message to investors, reports said.
Indian states are competing with each other to attract investment to their states as the country is trying to hard to generate employment for its huge young population.
