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Plan panel sceptical on grounding of MoU projects

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BS Reporter Kolkata/ Bhubaneswar
Last Updated : Jan 29 2013 | 2:34 PM IST

Even as the state government is positioning Odisha as a favorable destination for investments, the Planning Commission is sceptical about the implementation of the projects in the pipeline.

“It has to be appreciated that lot of investment opportunities which are finalised by industrial houses may not fructify unless a strong policy is available from the state government. The DIPP (department of industrial policy and promotion) data shows that IEM (industrial entrepreneurs memorandum) implemented was only Rs 53 crore in 2011-12,” said B K Chaturvedi, member, Planning Commission at a seminar on ‘Invest Odisha’ organized here.

He said, DIPP data shows that IEM filed totaled a whopping Rs 11.20 lakh crore during the period 2008-12, which is the highest in the country.

The Plan panel member advised the state for formulation of clear mechanism for resolving the issues that may arise during the course of project implementation and pitched for policy formulations relating to acquisition of lands, development of road and rail infrastructure and effective port connectivity.

“The state government, Railways and the Coal India must work together along with port authorities to see that rail infrastructure is adequately in place,” he added.

“For this purpose, the state government will have to work along with National Highways Authority of India (NHAI) and the port authorities to develop a plan for expanding the road network. Simultaneously, investments in rail network will be required. The full benefits of the port infrastructure will not accrue unless this backward linkage is planned effectively,” he suggested.

Stating that power is one of the most important ingredients which investors look for, he said, “The state government proposes to develop substantial new power capacities during the 12th Plan. A total of 42 investments estimated at Rs 2.1 lakh crore were approved for the power sector. Many of these projects have problem of coal linkages.”

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Chaturvedi also asked for effective follow up for ensuring availability of power for industrial growth and demanded for good governance in the implementation of the projects.

Speaking on the occasion, chief minister Naveen Patnaik called for more private investments in the state.

“We recognise that public sector investments are needed to expedite development and welfare of local people and regions. The role of private investment is not less important for the growth of the economy,” Patnaik said. Private investments are necessary for both economic growth and development, he added.

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First Published: Jan 05 2013 | 12:33 AM IST

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