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Madhya Pradesh is gearing up for the fourth edition of Global Investors Summit, to be hosted in Indore next week. Unlike the past events, GIS-2014 will not have a Memorandum of Understanding (MoU) signing ceremony. Chief Minister Shivraj Singh Chouhan explains the logic behind such a decision to Shashikant Trivedi. Edited excerpts:
Global Investors Summit 2014 is different from the previous summits as you have announced the state government will not sign any MoU with any company? What, then, is the agenda of this summit?
We want to showcase the potential of Madhya Pradesh, its rich natural resources. During the past summits, we tried to place the state on the global industrial map and, as a result, it is now globally known as an ideal destination for investment.
When you sign deals or MoUs with companies, the objective of attracting investments gets deviated - which is why we will not sign MoUs with any company during the Indore summit.
You have assigned a special day for small and medium scale industries during the summit. What will you showcase to them?
Small-scale industries are important for us just like large-scale industries. We want them to flourish in the state so that our young population will have enough avenues to become entrepreneurs. Moreover, small-scale industries require less capital and they pave the way for young people to step into the industrial world.
The SME (small and medium enterprises) sector can flourish by adding valued to raw materials available at the local level. For example, we've plenty of agriculture yields as raw material; if our young population prefers to become entrepreneurs, they can set up small-scale units and can do value-addition at local level to this locally-available raw material. It can further be used in processing at large-scale industries.
To encourage young population, my government has come up with a "Yuva Udyami Yojana" under which we offer a guarantee and interest subsidy on any industrial bank loan if offered in a bracket of Rs 10 lakh and Rs 1 crore. A complete day for SMEs at Indore summit, I hope, will help us set up small-scale and cottage industries at every village across the state.
Industrial bigwigs still complain of procedural delays.
Who says so? Companies like Reliance have not only set up an ultra mega power project in the state, but they are also producing and selling power. I feel difficulty in solving issues that pertain to forests and environment matters. Yet, we try to deliver our best. Madhya Pradesh has changed a lot. Not only has the investment climate changed, the policy and procedures have been made simpler and investor-friendly, too. We are faster in terms of delivery.
Why have you introduced a new Investment Promotion Policy recently?
It has been introduced to bring more comfort to investors, make process easier and simplify rules further. For example, it was a longer process for refund of value-added tax for entitled companies. We have made the provisions for immediate refund to a certain limit. The rest will be refunded after audit and assessments. What I feel is that we have to make rules and policies in accordance with the changing industrial scenario and we take fast decisions to amend them.
Is it the same for the proposed amendment to labour laws, which has been opposed by trade unions?
We have maintained a balance between the interests of labourers and investors. Both are on a par as far as amendment to labour laws are concerned. The proposed amendments will not only solve issues of investors but will also maintain labourers' interests in a better way.
