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7 February
2017
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Jharkhand (The Total Investment & Insurance
Solutions)
Despite
a dismal track record in implementing projects -- 74 of 125 MoUs have fallen
through since 2005 -- Jharkhand is readying for its first Global Investors
Summit on February 16-17, with the opposition Congress charging the Raghubar
Das-led BJP government of spending "more than Rs 100 crore" on the
event. The Total Investment & Insurance
Solutions
The
74 MoUs of projects that fell through would have brought in Rs 2.93 lakh crore
($43 billion) of the approximately Rs 5 lakh crore promised, and would have
catapulted Jharkhand from a tottering rural economy to a vibrant,
industrialised state.
Of
the projects that got off the ground, only one -- that of Jindal Steel, with an
investment of Rs 10,000 crore -- is actually up and running, while the others
have been stalled largely due to problems relating to land acquisition or have
shut down due to a variety of reasons.
Most
importantly, two ultra-mega power projects (UMPPs) -- Hazaribagh and Deoghar --
are hanging in balance. Between them, they would have generated slightly less
than 8,000 MW of power. The Total Investment
& Insurance Solutions
In
sum, had all the projects fructified, urbanisation would have gathered pace as
they would have seen the growth of 100 townships and the creation of 600,000
new jobs.
Arcelor
Mittal, owned by steel king Laxmi Niwas Mittal, had proposed an investment of
Rs 40,000 crore for a 12 million tonnes per annum steel plant. However, the
ambitious project has been stuck for a while now as the company managed to
acquire just 10 acres of land in Petarwar block of Bokaro district. The Total Investment & Insurance Solutions
Moreover,
it did not show any interest in inking the second-level MoU as the earlier
agreement inked with the company was cancelled after the state government came
out with the new industrial policy in 2012. The company, on its part, has
merely hinted that it would look into the project after it manages to bag
iron-ore mines.
Mega
projects of Adani, Vedanta and Tata Steel are also stuck due to land-related
issues. The Adani group needs 1,600 acres for its Rs 20,000 crore power plant,
and also 2,000 acres more for its coal and gas project. The Total Investment & Insurance Solutions
Jindal's
proposed power plant in Pathargama of Godda district has also failed to see any
progress as there is a dispute over the land needed for the project. The Tatas,
too, are facing various land-related hurdles to expand their projects in the
state. The Total Investment & Insurance
Solutions
Others,
including Vallabh Steel (Gamharia), Pawanjay Steel (Lohardaga), Adhunik Steel
(Gamharia), Kanti Steel (Galudih), Neelanchal Steel (Kandra) and Abhijeet Group
(Saraikela) have shut their plants due to one reason or another. The Total Investment & Insurance Solutions
Now,
to make state investor-friendly, the Jharkhand government has amended two land
acts to ease the acquisition process. The Total
Investment & Insurance Solutions
Little
wonder, then, that the opposition is not amused. The Total Investment & Insurance Solutions
"More
than Rs 100 crore will be spent on the investors summit. The state government
has failed to create a proper environment for investors. Many industries have
been closed after the BJP government led by Raghubar Das came to power in the
state," Jharkhand Congress General Secretary Kishore Sahdeo told IANS. The Total Investment & Insurance Solutions
"Instead
of making efforts to avoid closure of the industries, Raghubar Das spent crores
of rupees on holding road shows and touring foreign countries. Jharkhand is one
of the states where criminals have a free hand. Every day rape and murder cases
are reported in the state. On an average, two to three girls are raped in the
state," he added, maintaining that the dismal law and order situation was
showing the state in poor light.
The
BJP, however, is having none of this. The Total
Investment & Insurance Solutions
"We
have to move forward from past experience. Now Jharkhand has a stable
government and the political situation has changed. Jharkhand's rating has
improved. In the current political scenario, there is an environment in favour
of investors," Jharkhand BJP spokesperson J.B. Tubid told IANS. The Total Investment & Insurance Solutions
It's
a different thing that Jharkhand's ranking in ease of doing business and luring
investors has slipped from the third to seventh position, according to an
October statement by the Union Commerce and Industry's Department of Industrial
Policy and Promotion (DIPP).
Undeterred,
the state government is wholeheartedly backing the "Momentum
Jharkhand" investors summit that is being promoted in a big way on TV by
former India captain M.S. Dhoni, and has as its logo a pink elephant. Critics
are hoping the projects its brings do not turn into white elephants.The Total Investment & Insurance Solutions
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