Investment panels get more teeth

Taking cognizance of the issues in the implementation of the Madhya Pradesh Industrial Promotion Policy 2004, the state government has decided to provide more teeth to empowerment committees on investment and allow more private bodies in infrastructure planning and creation.

This was decided by a high-powered meeting chaired by Chief Minister Shivraj Singh Chauhan here yesterday.

There are three levels of empowerment committees. The apex committee deals with power-related issues, including concessions and sops.

"It has been observed various departments associated with investment take their own course and do not work in harmony with departments dealing with investment-related issues," said a government insider who participated in the meeting. Various departments are involved either in planning or the creation of infrastructure.

For example, the information technology department proposes to develop an IT park whenever a new chief minister assumes office; an Information Technology park (Crystal IT) has been developed by the Madhya Pradesh State Industrial Development Corporation in Indore, which has no takers.

"The meeting decided the departments' roles should be less," said an insider. Investment proposals lose steam when government departments find it difficult to answer regulatory bodies like the Madhya Pradesh State Electricity Regulatory Authority on-power related concessions for mega investment projects. Losses incurred due to sops should to be compensated by the government to the state electricity board.

The process of obtaining permission from MPERC causes delay and a fatigue factor grips investors. "To offer new concessions in power related issues on 13 points only 2 have been notified, the rest are pending.

The committees will monitor the implementation of policy decisions through an Act mentioned in the policy," said sources.

The meeting also discussed to replicate finer points of industry policy and process of dealing with potential investors in various developed states.

The BJP ruled government hardly attracted hardly any investment after announcement of industry policy. Those investment figures quoted on various occasions by the government were in the process for long time.

The frequent change of chief ministers and bureaucratic machinery have also hampered industrial growth and delayed investment process in the state.

For example, much awaited Rs 10,000 crore Bina refinery project, Rs 120 crore private water supply project, Rs 2,500 crore ITC's pulp and paper plant, Rs 2,000 crore auto testing track, Rs 2000 crore Reliance power project, Rs An Information Technology (Manufacturing and Design) Institute (Rs 600 crore) are hanging in balance.