MP project panel may add to delay

Investors in MP will have a tough time as the project clearance process, which is already infamous for being tardy, is going to be lengthier and more cumbersome after today's government announcement to set up a new body that will consider investment proposals of Rs 25 crore and above.

Although idea is to get rid sloppy procedure of Industrial Promotion Policy 2004, that is hindering investment in the state instead of speeding up them, the announcement will create a confusion among investors since an Apex empowered committee on investment of Rs 25 crore and above is already functioning under chairmanship of the state chief minister.

The state government today announced to setting up a 'Project Clearance and Implementation Board' that will scrutinize and clear new investment projects. So far three empowered committees have been formed to see the investment proposals at various level in the state.

A District level investment promotion empowered committee considers investment proposals worth Rs 3 crore, State level investment promotion empowered committee considers proposals of above Rs 3 crore up to Rs 25 crore while Apex investment promotion empowered committee chaired by the state chief minister considers investment proposals worth Rs 25 crore and above.

Making a statement regarding creation of new body before a gathering of investors under the banner of Madhya Pradesh State Industrial Development Corporation, state chief minister Shivraj Singh Chauhan admitted that the investment proposal clearance is a very lengthy exercise in Madhya Pradesh and said his government is intending to convert Single Window System into 'Single Table System' and the Board will look into the problems and bottlenecks being faced by investors and also monitor the departments in implementation of their respective projects.

"The concerned department shall inforce (enforce) the decision of the board once it is ratified by the chief minister. However, if required, necessary approval of the Cabinet shall be obtained," a statement issued soon after the chief minister's announced said.

The board will be constituted under chairmanship of Chief Secretary and principal secretaries of finance, revenue, commercial taxes, industries, housing and environment and principal secretary chief minister. With officers from different department an industrialist will have to face a tough task of convincing the viability and importance of his project.

Mr Shivraj Singh also said, "the office of the chief minister will create a cell, which will be responsible for providing necessary secretarial assistance to the Board.

An investor under the new system will have to submit his proposal to the department (industries) and the department will forward the proposal to the Board. That will make clearance on the proposal. To rub salt the wounds of industry the chief minister also announced, "the board will have two meetings in a month."

That means a potential investor will have to wait for the board meeting to take place. The chief minister Mr Singh and his industry minister Mr Babulal Gaur were not clear on the facilities to be offered to the potential investors.

Taking a step further Mr Gaur announced that industries would continue to enjoy commercial tax exemptions, despite the fact that his department will switch over to Value Added Tax from April 1, that says all industrial units will have to pay tax.

He once again harped on his investment figures to make tall claims that Rs 50000 crore investment proposals are pending, a power point presentation made by Madhya Pradesh State Industrial Development Corporation failed to explain as to how Industrial Promotion Policy announced by new government has attracted the investment.

For example, the presentation said, "Bharti Enterprises has made an investment of Rs 1000 crore in telecom sector." But the investment came in 1998 when Congress government was in power.