'Industrialists not keen on Vidarbha'

Vidarbha continues to be the neglected region in Maharashtra's 'sterling' performance on the industrial front during the four years of the Democratic Front government.

Maharashtra industry minister Patangrao Kadam on Saturday spoke of the industrial development of the state but was apologetic when it came to Vidarbha.

Addressing a press conference to highlight the industrial progress of the state in the last four years, he said Maharashtra is the numero uno state in the country in industrial investments.

The investment intentions and the foreign direct investment (FDI) proposals the state received far outstripped that of the second best state, Gujarat, he said.

On the industrial progress in Vidarbha, the minister said, "We suggest industrialists to set up their units in Vidarbha. But they prefer places such as Mumbai and Thane. We have introduced a special incentive scheme for industries in Vidarbha. But what can we do? The decision where to set the unit is that of the industry not of government." So, the region's woes continue.

The textile zone at Butibori, inaugurated only two months after the DF government came in power, remains to see the light of day. And the minister himself admitted that Nandgaonpeth - the star industrial estate in Amravati district - was a "complete failure".

Though the state government has proposed Butibori as a special economic zone, Kadam was unable to disclose the date when the proposal was sent.

Union commerce minister Arun Jaitley had sometime back denied having received the proposal. On the other hand, work at the SEZ at Dronagiri in Navi Mumbai has already started and a private SEZ is also being set up in neighbouring Raigad district.

An industrial township was declared for Butibori in the state's Industrial Policy 2001. Till now, however, the notification has not been issued.

When asked on this, Kadam, at first expressed displeasure but later said the matter has been stuck for want of a no-objection certificate (NOC) from the concerned gram panchayat.

"Getting an NOC from the gram panchayat will be highly difficult. The government will have to take some bold decisions and re-work the Industrial Township policy," he said.

Kadam further said that 60 per cent of the space at Nagpur's Infotech Park has been occupied. The Orange City Food Park at Butibori too was developing at a fast pace and had 29 investment proposals, he said.

A World Bank-CII survey in 2000-01 revealed Maharashtra as the state having the best industrial climate, while the Business Today-Gallop India Survey (September 2003) declared Maharashtra as the best state for doing business, the minister said.

After the DF government came to power in October 1999, the state has received 2,711 investment intentions involving proposed investment of Rs 78,023 crore and employment opportunity of 4.1 lakh.

Of these, however, only 174 projects have been set up, involving an investment of Rs 9,608 crore and jobs to 35,000 people.

In Nagpur revenue division, 397 investment intentions were made during this period, with proposed investment of Rs 18,800 crore.

Till now, only 33 new projects, with investment of Rs 1,108 crore, have been set up. Kadam listed the major projects in Nagpur division: Maratha Cement, Purti Sakhar Karkhana, Shrivirangana Steel, Haldiram, Dinshaw, UP Asbestos Limited, Murli Agro, Indo Rama, Persistent Systems, etc.

Nagpur division also has its share of FDI proposals. There are 10 such proposals involving just Rs 35 crore.

Development Commissioner Bhagwan Sahai, board member, Maharashtra Industrial Development Corporation, Ashok Dhawad and Chief Executive Officer, MIDC, Vidyadhar Kanade were also present on the occasion.