Brand Uttar Pradesh needs greater push among India Inc.
Industrial development awaits a greater push in Uttar Pradesh even as various development and infrastructure projects totalling Rs 1,70,000 crore are said to be underway or proposed in the public private partnership (PPP) mode.
The PPP projects mainly relate to expressways/highways, power, education, urban development and medical/health sectors.
Apart from the 165-km Greater Noida-Agra Yamuna Expressway project estimated at over Rs 10,000 crore — the flagship project of the current Mayawati regime, no other big- ticket investment has materialised in UP. The expressway is likely to be completed in another three months.
However, the UP government during 2010 signed memoranda of understanding with companies, including Bajaj Hindusthan, Torrent Power, Welspun, National Thermal Power Corporation (NTPC), Tehri Hydro Development Corporation (THDC), Neyveli Lignite Limited (NLC) and Lanco for thermal power projects totalling 16,000 Mw with combined investment portfolio of about Rs 75,000 crore.
Since, power and infrastructure had always been laggards in UP, these sectors had to be taken up in priority by the state to move up the economic ladder.
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However, the government has not made worthwhile effort to promote Brand UP among India Incorporated. The state has failed to publicise its pro-industry policies and sops among industry captains and has been lethargic to engage industry through dialogue process and interactive sessions.
In this backdrop, the recent clash between farmers and UP Police in Greater Noida, which left four persons dead, including two cops, could only add to the woes of the government. The incident only magnified the failure on part of the state and district administration in controlling the situation and a fragile law and order situation.
Although news reports claimed the Greater Noida issue was related to land acquisition for Yamuna Expressway, both concessionaire Jaypee Associates and chief minister Mayawati have vehemently denied. She maintained the farmers had been given full compensation, better than neighbouring states, and the incident was orchestrated by her political opponents in connivance with anti-socials.
“While, there is always scope of improvement in any policy, UP follows the most progressive land acquisition and compensation policy among all states,” UP Infrastructure and Industrial Development (IIDC) Commissioner V N Garg told Business Standard.
He mentioned “remarkable achievement” by UP in both power generation and transmission. “PPP is the major part of our policy to encourage investment in various sectors,” he added.
The government had also proposed Ballia-Greater Noida Ganga Expressway and Upper Ganga Canal Expressway under PPP, but both the projects are yet to receive the final clearance by the Centre.
Meanwhile, the government is developing 13 state highways (SH) having total length of over 1,750 km costing Rs 8,600 crore through PPP. Besides, solid waste management projects in 25 cities have been launched with estimated cost of Rs 750 crore.
The government is sprucing up its health and education infrastructure by setting up new polytechnics and hospitals across UP, especially in rural hinterland.
The government is working on its agenda of total privatisation of the sugar sector, which is the largest organised industry in UP, with several ailing government sugar mills already sold to private bidders.
The government has opened lucrative routes to private transport operators in UP.
Meanwhile, the government has demanded the limit of viability gap funding (VGF) be enhanced against the existing limit of 20 per cent to give impetus to infra projects, since they require longer gestation period with massive investment.
UP has demanded the Centre cleared PPP projects on priority. Several UP projects, including international airports at Kushingar and Jewar are yet to get the Central nod. The state has urged the Centre for priority in giving coal blocks/linkages to thermal power projects.