MP: Promises & results

The end of the quota regime from January 1, 2005, has motivated the Indian textile industry to take on challenges from China.

A few of them have rushed to Madhya Pradesh, which grows one of the finest varieties of cotton (H4) and has cotton-growing and garment-manufacturing neighbours like Maharashtra and Gujarat.

Despite the tag of being "investment-proof" for its "moon-surface" roads and acute power outage, Madhya Pradesh started looking up in 2006. However, with frequent changes in government and modes of governance, industries are yet to take their plans out of the drawing boards.

The new industrial policy came into existence after a lot of procrastination and official pressure to block it. The original plan to sell the Indore SEZ is still in abeyance.

A separate textile chapter included in the "Industrial Promotion Policy 2004", launched by the then chief minister Uma Bharati and her team, did the trick.

SP Oswal-promoted Vardhman group, Nahar Spinning, Pratibha Syntex, Abhishek Industries, Agrawal Indotex, Jaideep Glass Works Pvt Ltd. (textile division), Kamal Cot Spin Pvt Ltd., Parasnath Ginned Cotton Pvt Ltd, RD Fabrics, etc. floated proposals to the state government to take incentives mentioned in the "Textile Chapter."

Coincidently, Bharat Oman Oil Refinery Ltd has started making intensive efforts to push for the Rs 10,000 crore "non-viable" Bina Refinery project. After a long discussion, the cabinet headed by the then Chief Minister Babulal Gaur, offered tax deferment facilities to the company so that it can obtain more than a Rs 4,000 crore loan.

Gaur and his team created hype about the state's economic development by suddenly raising government rates of land prices across the state (including industrial areas). This triggered panic among local real estate players who have occupied patches of land area in Bhopal before any investment could take shape there.

Gaur also faced criticism from the Opposition for reportedly giving doubtful figures and details of deals signed with firms during various foreign jaunts. Even in a return reply he mentioned that the state attracted only Rs 980 crore investment against his own claims of attracting more than Rs 100,000 crore investment.

As industry minister, Gaur made trips to Sharjah, the US, the UK, Singapore and Malaysia by roping in the Federation of Indian Chambers of Commerce and Industry (Ficci). Soon after his return from Sharjah he announced he had attracted Rs 10,000 crore investment in 2006.

He made a similar announcement after coming back from the US and the UK. None has come to invest in the state so far.