'Madhya Pradesh gets Rs 2.25 lakh-cr investment interest before event'

Madhya Pradesh will woo investors at a three-day global summit beginning here from Wednesday.

The state government says it will not sign a memoranda of understanding (MoU) with any participant at the Global Investors Summit. Even so, sources told Business Standard that a total of Rs 2.25 lakh crore worth of investment interest had been expressed through a website of Trade and Facilitation Corporation an  arm of the government. Information technology giants Infosys and Tata Consultancy Services have committed Rs 500 crore of investment each, the sources said. MoUs worth Rs 2 lakh-crore were signed in the previous investor summit, in 2012. However, much of this did not materialise on the ground.

Prime Minister Narendra Modi will arrive in the financial capital of Madhya Pradesh on Thursday, on a brief visit, with a platoon of business heavyweights. He has, however, cut short his visit from the nearly four hours scheduled earlier to an hour. Modi’s visit is expected to boost the event, giving investors an assurance on clearances of projects facing hurdles due to forest and environment laws.

“The prime minister's office had sent a letter to the state forest department to study the laws restricting projects because of which cost goes up,” a source said. For example, passage of a gas pipeline under the national gas grid is facing hurdles in Madhya Pradesh as it is proposed to pass through various national parks. The cost of the project has escalated by at least Rs 50 crore, he said.

Besides, Hindalco and Essar have a joint venture company in Singrauli district, which is facing a hurdle due to the Forest Rights Act. Hindalco is setting up an alumina smelter project, whose cost has risen from Rs 7,700 crore to Rs 13,000 crore. The summit will start with special sessions for medium and small-scale industries. The session will begin with showcasing these sectors of Madhya Pradesh, their achievements, targets and goals.

The day has been divided into four sections having sectoral presentations. An official said the presentations would include showcasing Madhya Pradesh as a warehousing and logistics hub, giving the status of organic farming, promoting growth through skill development and protection of intellectual property rights.

Participation is expected from Canada, Peru, the Czech Republic and Mexico.

Chief Minister Shivraj Singh Chouhan will have a meeting session with various participants. Addressing a gathering at his home turf in Budni after inaugurating a composite textile project of the Trident group, Chouhan said he was making efforts to make agriculture a profitable business. However, only agriculture could not bring a healthy lifestyle and it was necessary to attract investment for industries.

He wanted that the industrial community should not only invest in Madhya Pradesh but also train youngsters to be entrepreneurs.