Akhilesh dreams big ticket investments, slights MSMEs

State govt, both under previous Mayawati and current dispensation, has been hosting investors' meets to attract investment and showcase Brand UP

Pursing big ticket investments through summits and challenging 'Make in India' theme with his self-coined phrase of 'Make in UP', Uttar Pradesh chief minister Akhilesh Yadav is unwittingly causing some heartburns amongst the small and medium industrialists of the state.

The Micro, Small and Medium Enterprises (MSME) sector complains while Yadav is trying to woo big industrialists, the state government has utterly failed to alleviate even the most basic problems being faced by them.

The state government, both under the previous Mayawati and the current dispensation, has been hosting investors' meets to attract investment and showcase 'Brand UP', which perceptibly is yet not fancied by industrialists due to lacking infrastructure of power and roads, law and order issue, lackadaisical attitude of government agencies etc.

Such razzmatazz held in Mumbai, Agra and Lucknow have fetched little investment to the state.

Now, the government is gearing up to hold another summit in Mumbai on September 10 to get investment and publicise its policies with regards to industry and films. Yadav is likely to be present at the event.

Addressing a mega MSME conclave here in September 2014 organised by Indian Industries Association (IIA), the CM had promised meeting members of the MSME once every month.

This one-to-one interaction was aimed at spot resolution of their industry and investment related grievances. The industrialists were supposed to not take any prior appointment for this meeting, which would have been attended by top bureaucrats, including the chief secretary.

"Not a single such meeting has taken place," a senior IIA office bearer rued talking to Business Standard.

"The ground situation for the MSMEs has not changed with the change of guard in UP. We are facing the same harassment from government agencies regarding matters of industrial land, clearances, electricity etc," he lamented.

UP Inc has long been complaining about industrial and investment matters lingering in official files, which not only delays but also deters fresh investment.

Issues pertaining to land, pollution, labour, environment, clearances, taxation etc have been cited as major hurdles in the path of MSMEs, as it takes months and sometimes years to get them resolved.

Theoretically a single window clearance system for industry exists in UP, yet it is far from practical and industrialists have to comply with dozens of individual formalities to get clearances on their own. A senior industry department had recently conceded to the practical irritants in the single window system, while promising to overhaul it.

Not only domestic investors, the Akhilesh government is keen to engage with Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) hailing from UP for investment. A dedicated NRI department has also been created for the purpose.

"Why would new investors come to UP if the state government has failed to deliver on it promises made to the existing units," Laghu Udyog Bharti, Lucknow chapter, president said.

He cited the example of Tata Motors, which has shifted some of its production from the Lucknow plant to Uttarakhand after the Akhilesh government allegedly dithered in conceding to the company's demand of incentives promised under the state industrial policy 2006 announced during the then Mulayam Singh Yadav regime.

"The government is keen on pursuing flagship projects of Agra-Lucknow Expressway and Lucknow Metro Rail. The seriousness, which ought to have been shown towards the MSME sector, is sadly missing," he underlined.