Gaur's investment claim at odds with industry dept's

In contrast to his tall claims of attracting more than Rs 100,000 crore investment, Madhya Pradesh Industry Minister Babulal Gaur has said the government had attracted only Rs 1000 crore investment during 2004-2006.

However, the data furnished by the minister did not tally with that provided by an arm of the state department of industry.

Gaur also has mentioned "doubtful" investment figures relating to some companies, while informing the Assembly on Tuesday.

In a written reply to a question of Congress MLA Rajendra Singh, Gaur said his government had signed only two Memoranda of Understanding, one with Bharat Oman Oil Refinery Ltd for the Bina project and the other with Hindalco (Hindustan Aluminium) for an alumina smelter plant in Sidhi.

The former has started construction while the latter has applied for land acquisition.

He also said his government had attracted an investment of Rs 1,088.91 crore from all large and medium sector firms during the period.

Gaur said his industrial policy revived only two units, namely Sawaria Agroils Ltd in Mandideep district in Raisen.

The company, earlier known as United Soya, has been taken over by the Sawaria group with an investment of Rs 5.26 crore. Another unit Reliance Ispat (declared sick as Kesri Steels) has been taken over by Birani Ispat Pvt Ltd, Dewas, for manufacturing tar steel with an investment of Rs 15 crore.

Pointing out the poor data collection process of the state industry department a government source told Business Standard: "The investment figures mentioned in the answer for Mahima Purespun, Pithampur, for spun product manufacturing are incorrect. The company has plans to invest Rs 55 crore in its Pithampur (near Indore) project, while the answer submitted by Gaur said the company made an investment of Rs 9.63 crore. Even when the company started it had already made an investment of Rs 26 crore," the source added.

Similar was the case of Parakh Agro Industries Ltd, Pithampur. "The company has invested Rs 26 crore in manufacturing agro products and not Rs 2.61 crore as mentioned in the reply. Narmada Sugar Pvt Ltd has invested Rs 11 crore and not Rs 5.50 crore as mentioned in the reply," the source said.

A list of units that took shape during the said period had also been issued by MP Trade and Facilitation Corporation, an independent entity of the department of industry during the Khajuraho Investors' meet recently.

Accordingly, the state has attracted fresh investment (including expansion) of Rs 1,598 crore.