Gujarat signs IEMs worth Rs 1,520 crore

Industrial investments are coming back to Gujarat. The long shadows of communal violence and natural calamities had taken a toll on the investment scenario in the state during last two years.

In June, 2004, Industrial Entrepreneurs Memorandums (IEMs) worth Rs 1,520 crore were filed during the month, highest among all the states.

However, if number of projects is to be considered then Maharashtra tops the list with IEMs for 52 projects filed during the month under consideration, while West Bengal comes in second position with 51 IEMs filed during June, 2004.

According to a report by the Centre for Monitoring Indian Economy (CMIE), reveals that during June, 2004, total 412 IEMs were filed in 24 states and two Union Territories (UTs), Dadra & Nagar Haveli, Daman & Diu which was worth of a cumulative amount of Rs 14,019 crore. In May, 2004, 404 IEMs were filed in all the states and UTs against 385 IEMs filed in April, 2004.

Interestingly, Kerala which was being considered as a new hub of industrial activity, witnessed signing of only one IEM during this period which is even lesser than Meghalaya, known as an under-developed state in the country's industrial map.

Goa also has reported one IEM worth Rs 8 crore as the IEM filed in Kerela was worth Rs 60 crore, holding 0.24 percent stake in the total IEMs filed in the country as Tripura managed to be ahead of Kerala in the list as one IEM worth Rs 111 crore filed in this state.

Five IEMs brought in investments worth Rs 148 crore for Jharkhand while seven IEMs worth Rs 310 crore was filed in Jammu & Kashmir.

"Thrity-five IEMs worth of Rs 1,520 crore were filed in Gujarat during June, 2004 against 33 IEMs filed in May worth of Rs 196 crore in the State, thus showing that things are improving in this crisis-ridden state.

"But significantly, while Gujarat holds 10.84 per cent stake in the total value of IEMs signed in the country during this period, Chhattisgarh where 34 IEMs were filed brought in investment possibility of Rs 3,658 crore, highest stake of 26.09 per cent among all other states.

Even 17 IEMs were filed in Orissa which were worth of Rs 1,748 crore, second highest among all the states this claiming 12.47 per cent stake in the total IEMs' worth which shows that the states earlier not doing so well from industrial perspective, now coming up in a big way," said a senior member of CII.

Among the southern states, Andhra Pradesh witnessed filing of 31 IEMs worth Rs 252 crore, 17 IEMs were filed in Karnataka worth of Rs 202 crore while 30 IEMs worth Rs 814 crore were filed in Tamil Nadu.

Four IEMs worth Rs 40 crore were filed in Pondicherry, even surpassing Kerala.

The CMIE report also revealed that in spite of various tax-sops being offered by Himachal Pradesh to attract investments in the State, during June, 2004, 12 IEMs worth Rs 311 crore were filed there.

West Bengal which comes in second position with 51 IEMs worth Rs 1,387 crore signed during the period, has come up in the list aggressively as in May, 2004, only 26 IEMs were filed in that state.

Twenty-seven IEMs worth Rs 505 crore were filed in Uttar Pradesh while 13 IEMs worth Rs 1294 crore were filed in Punjab.