Bundelkhand: Waiting in wings to ascend economic value chain in UP

The parched climes of Bundelkhand region in Uttar Pradesh could well transform into avenues of sustained economic development in the future if roadmaps drawn on tables get implemented on the ground.

The region comprises seven districts in the Southern parts of Uttar Pradesh, bordering Madhya Pradesh. The dry zone characterised by successive droughts, sub-optimal rainfall, barren swatches of land and low agricultural production, has over the decades resulted in large scale migration of people to other places for employment.

Apart from food grain, the region has been anemically deficit in cattle fodder as well. Bundelkhand has no reckoning in the economic value chain in UP and is considered as a drain on the exchequer due to low economic activity.

Against this backdrop, blueprints have been drawn by the state government to capitalise on the innate strengths of the region with regard to agriculture and solar energy to spur the local economy, arrest migration of people and boost long-term growth. Besides, mining is another area, which could also be harnessed.

Since, Bundelkhand possesses abundant land and receives good amount of solar radiation, it is ideal for solar energy sector.

Under UP Solar Power Policy 2013, the state aims at enhancing renewable energy and ramping up grid solar power by 500 megawatt (MW) with the help of the private sector.

The policy provides sops to companies proposing to set up solar energy plants in Bundelkhand. Thus far, the government has signed power purchase agreements (PPA) with several private companies for solar energy.

UP is estimated to attract investment of almost Rs 40,000 crore in the next couple of years in renewable energy from Azue Power, ACME Group, Essel Group, NTPC, Moser Baer, Reflex Energy, DK Infracon, Jackson Power, etc.

The government has identified nearly 1,200 hectares of land, mostly barren and non-agricultural in Bundelkhand for the purpose, according to a Associated Chambers of Commerce and Industry of India (ASSOCHAM) paper titled 'Roadmap for tapping renewable energy potential in UP'.

Bundelkhand comprises Lalitpur, Jhansi, Jalaun, Hamirpur, Mahoba, Banda and Chitrakoot districts.

In January 2016, UP chief minister Akhilesh Yadav had inaugurated a 50 MW solar power plant at Jalaun district in Bundelkhand. The unit spread over 250 acres had been set up by Essel Infraprojects (EIL), which is part of the Subhash Chandra-promoted Essel Group.

The PPA is valid for 25 years and is estimated to generate 85 million units per annum.

Besides, Bundelkhand is considered favourable for plantation of medicinal and aromatic plants, which require less water.

Even Yoga guru Baba Ramdev has evinced interest in investing in Bundelkhand for the cultivation of medicinal herbs and plants, which could be used in the production of herbal consumer products under the Patanjali brand.

In May 2016, Ramdev had met Yadav in Lucknow, seeking help to identify a suitable place for a dedicated plantation hub for Patanjali. He expressed his desire to invest in Bundelkhand to grow Ayurvedic plants such as Aloe Vera, apart from other vegetables, fruits and also dairy products.

Yadav has already directed the state chief secretary to draft a proposal in this context.

Bundelkhand is also rich in mineral resources. UP has about 4,000 mines of coal, silica, bauxite and granite, of which majority are located in Bundelkhand, where private miners are allowed to extract minerals for royalties.