Chouhan unveils strategy to make Madhya Pradesh investment hub

Madhya Pradesh Chief Minister Shivraj Singh Chouhan on Saturday unveiled a new strategy in a bid to make his state the most preferred investment destination in the country. The key components of this strategy would be steps to ensure easy connectivity across the state with better roads, industrial peace, adequate availability of mineral resources, uninterrupted supply of electricity and good governance.

Addressing a gathering of business leaders here, Chouhan also announced that the new strategy would aim at making Madhya Pradesh power surplus by 2013. Chouhan was delivering the inaugural address at Samriddhi, a conference organised by Business Standard to deliberate on the development agenda for Madhya Pradesh.

An hour-long panel discussion on the problems and prospects of industrial development in the state followed the chief minister’s address, delivered to a packed hall of business leaders who came from different parts of the state including cities such as Indore and Sagar.

Chouhan’s address, which lasted for over 35 minutes, assured the state’s industry leaders that their legitimate grievances would be addressed and their suggestions for improvement of policies would receive due consideration in his office. Chouhan exuded confidence as he reeled off figures on his record of economic achievements during his tenure as chief minister.

“We have plans to attract investment worth Rs 3.4 lakh crore,” Chouhan said even as he noted that investments and growth had to come along with social uplift of the underprivileged sections of society including women. Thus, he outlined the importance of the social security schemes like Kanyadan and Ladli Laxmi Yojna, which helped to empower women.

He said the government was now implementing a project to ensure round-the-clock power supply to industries in urban and rural complexes, particularly through separate power feeders for rural and agriculture consumers within three-and-a-half years from now.

A key plank of his strategy was to bring about reforms in agriculture by making farming a profitable business. “I want to pay special attention to the food processing industry in the state,” the chief minister said. The new industrial policy, he said, would make the food-processing industry a thrust area. Sharing his experiences during his recent trip to European countries, he said changing crop pattern and adopting modern farm techniques to boost agri-exports were on top of his agenda.

To explore the possibilities of joining hands with private partners in this sector, Chouhan said he had planned a mega show at Khajuraho on October 22-23. Extending his invitation to industry to take full advantage of the Khajuraho meet, he said the idea of the gathering was to encourage private sector companies to increase their investments in the state.

At the panel discussion, immediately after the chief minister’s address, Chief Secretary Avani Vaish admitted that the state was trying hard to attract more investment and improve on implementation of promises made. “However, a dialogue between local bodies and industrialists to respond to the problems will ensure the best for industry in the days to come,” he said.

Additional Chief Secretary Satya Prakash, who is in charge of the industries department, said there was an improvement in the investment climate as evidenced in the figures on new investments in the state. However, fresh policy initiatives, innovation in the soya sector and a more efficient bureaucratic machinery may attract more investments to the state.

“Only in 36 business deals we are expecting Rs 1.29 lakh crore investment. The much-awaited Bina refinery, Prism Cement, ACC, Nahar Polyfilms and Jay Prakash Industries have neared completion of their projects, while Essar and Hindalco have reached an advanced stage in their projects in the state,” he said.

Other participants at the panel discussion noted that the state must rely on innovative techniques if it had to give a boost to agri-based industries. “If Madhya Pradesh has to boost its exports, it has to do innovations like converting its animal feed made of soyabean into food,” Girish Matlani, managing director of Sonic Biochem, a soya processing company in the state, said.

R S Goswami, president of the MP Laghu Udyog Sangh, said more investment would come in the state if it ensured proper policy for micro, small and medium enterprises (MSMEs), though bank credit flow was now reaching more than Rs 10,000 against a few hundred crore a few years back. A purchase policy and cluster approach would serve the purpose to make Madhya Pradesh a preferred destination for MSMEs, he observed.

Besides the availability of cheaper land, what attracted big industries to Madhya Pradesh was the relatively more secure and peaceful law and order situation. “Minerals and raw material are in abundance here, but Madhya Pradesh has an added advantage of a peaceful atmosphere and transparency in land acquisition,” said Apurba Musib, project head (smelter), Hindalco, which was setting up its largest aluminium project in Singrauli.