Poor track record of partnership MoUs

AP to hold Partnership Summit 2004 from January 7 to 9

Of the 130 MoUs for projects worth Rs 56,000 crore investment signed at 2001 and 2003 Partnership Summits, only 31 projects involving an investment of Rs 4,400 crore had been implemented so far.

Unlike the much hype that was associated with the earlier two summits, this time the the MoU-signing ceremony is likely to be a low-key affair.

Though the officials of the state industries department are trying hard to come out with a few surprises on investments front during the summit, they have carefully avoided publicity of any kind on this front.

"We want to do whatever is possible without talking much about it." is their refrain.

The government believes that the partnership summits of this sort would help entrepreneurs have a national and global perspective of industry and business, and would help them come out with new projects to contribute to the growth of industry in the state.

Keeping this objective in view, the state government signed MoUs for 88 projects worth Rs 38,700 crore aggregate investment during the 2001 Partnership Summit and 41 projects worth Rs 17,200 crore investment the during 2003 Partnership summit.

A quick review of the progress of these projects shows a dismal picture on the implementation front.

Of the 88 MoUs signed in 2001 summit, only 29 projects with a total investment of Rs 4,321 crore were implemented so far.

These include Rs 225 crore games village and Rs 125 crore games stadium projects in Hyderabad, Rs 370 crore HPCL pipeline from Vijayawada to Hyderabad, Rs 300 crore GAIL pipeline from Thatipaka to Kondapalli, Rs 588 crore Reliance OFC project, Rs 400 crore Bharti OFC project, and Rs 80 crore Infosys software development campus in Cyberabad.

Projects dropped include Rs 2,604 crore Delta Refinery, Rs 150 crore electronics hardware project by ARM, Rs 107 crore food processing park by Asia Pacific Exports Limited, Rs 140 crore Teamasia Semiconductors Project and Rs 150 crore amusement park.

The state industries department has little hope on the much-hyped Rs 19,500 crore LNG Terminal project at Kakinada, in view of the recent gas find by Reliance in the K-G basin.

There are apprehensions over the viability of LNG terminal in the present context.

As regards the MoUs signed during the 2003 Partnership Summit, of the total number of 43 projects with an aggregate investment of Rs 17,000 crore, only 2 projects with an investment of Rs 42 crore were implemented so far. These are Rs 32 crore BHP Minerals India project and Rs 10 crore Biotechnology Venture Fund.

Besides, 17 projects are under implementation with an aggregate investment of Rs 3,795 crore.

These include Rs 2,400 crore aluminium and carbon anodes project at Visakhapatnam by Kapcol and Rs 260 crore coated paper boards and co-generation of power project by ITC in Khammam.