"It is more likely that there is a fight for attracting capital rather than a flight of capital as made out to be in certain quarters," state minister for large and medium industries H Shivappa told PTI, adding certain local industrialists were making much of a non-issue.

The state government, which launched a campaign to meet what it called such "bold allegations" in Delhi last week, said over ten large companies, including soft drink giants Pepsi and Coco Cola, Technova India (p) Limited, Consultants for Mischelins of France, the world's largest tyre manufacturing company, and Ballarpur Industries had evinced keen interest to bring in investments worth Rs 1100 crore into the state.

"Karnataka today is number three in investmentsincluding foreign investments. We have earned foreign exchange worth Rs 2000 crore through software exports from Bangalore alone, compared to a mere Rs 200 crore by Hyderabad," Shivappa said. The minister said the "mischievous campaign" that there was widespread red-tapism in the state had been demolished as industrialists considered the bureaucracy in the state to be very efficient.Shivappa said five American foreign equity companies - Sharp Labs, Cisco Systems, Sun Micro Systems, Bay Networks and Metlife Insurance - were all set to make investments in Bangalore. The German company Sap Lab and NEC of Japan were also likely to invest in the metropolis.

Besides, this foreign equity companies from other cities including three from Delhi - GE Capital, Hughes S/W and Network Programs - and one from Hyderabad - De Shaw, were expanding to Bangalore. Shivappa further said in six months to one year the state would be self-sufficient in power, while Rs 125 crore had been set aside for improving transportation in thecapital. At present, a total of 25,000 apartment units were available in Bangalore for genuine buyers. The minister said Bangalore was all set to achieve a software export target of Rs 10,000 crore by 2000 and Rs 12,000 crore by 2003.