MP sitting on pile of investment plans

The by-election in Budni (district Sehore), confusion over the formation of the Investment Project Clearance board (which can take away the powers vested in the Madhya Pradesh Trade Facilitation Corporation), and rumours about the closure of the Madhya Pradesh State Industrial Development Corporation have combined to raise doubts about the claim of the MP government that it is about to attract Rs 84,000 crore investment.

Last month, the government organised a programme to flaunt investment proposals of Rs 84,000 crore. However, an insider said: "Many figures were cooked by MPSIDC officials to impress the gathering and make the programme 'Investors' Meet' a grand success."

Also, rivalries among bureaucrats have forced investors to go in for a multi-stage clearance of projects. This has dampened the pace of clearance of a few mega projects.

If insiders are believed, the apex empowered committee on investment will not meet till the amendment to the Investment Promotion Policy is done. Further, a board comprising principal secretaries will now decide on mega projects above Rs 25 crore.

There is no update on a textile park proposed at Mandideep, operations of a dry port constructed by Concor, the privatisation of a special economic zone, the revival of sick units, Crystal IT Park at Indore, the conversion of Bairagarh airport in an international airport, and clearance on various mega power projects.

"We have not received any response from the government though we submitted our proposal a month back. We have talked to Governor Balram Jhakhar but except verbal assurance we have received nothing. We will send our team again to Madhya Pradesh," said a senior official of a company that has plans to invest Rs 4,500 crore in a cement plant.

Similarly, a deal is yet to be signed by the Shivraj Singh government with CK Birla-promoted Hindalco, which seeks to invest Rs 7,700 crore. The deal signing has got postponed since, according to senior officials in the industry department, "various departments were not responding to the project clearance". The deal signing will take another month, according to an insider.

Another Rs 10,000 crore proposal of US-based ISN Corp to produce power is hanging in the balance. Further, even after almost one year of the announcement of the new forest policy, the state government has nothing much to say on the Rs 2,500 crore paper plant of ITC.

Another paper plant proposed by the Thapar group with an investment of Rs 2,000 crore has not been made available even on paper in the Madhya Pradesh State Industrial Development Corporation (MPSIDC). A project of the Trident group to invest Rs 1,200 crore has also not been cleared. Senior officials of the department of industry have no clue on the Rs 8,000 crore investment of GMR Ltd mentioned on the "investment list."

Insiders say the labour department is creating hurdles, while the Crystal IT Park, which his being developed in Indore with an investment of Rs 82 crore, has no takers. Only a building has been raised. The water supply issue is the prime concern of the textile units and the state has not permitted or acquired land contiguous to the Narmada. "The picture will be clear after the byelection," said a government official.