MP failing to create SEZs: Kamal Nath

Farmers are offering land for special economic zones (SEZs) gratis in MP but there are no takers because the state government has failed to create an investor-friendly atmosphere, according to Union Minister for Industry Kamal Nath.

"Farmers from Betul and Balaghat districts have offered me land free of cost and requested me to invite developers of SEZs and industries but the industrial community does not have faith in the BJP-ruled state government. There are no takers for SEZs. We have sanctioned 10 SEZs for Madhya Pradesh but none has taken shape," the minister alleged today.

He said Madhya Pradesh had failed to ride the investment bandwagon; as a result of this only 1.7 per cent of the investment has come to Madhya Pradesh. The state government, the Congress leader said, has failed to create employment opportunities and create conditions for farmers so that they can fetch better prices for their yield.

Speaking to Business Standard, Satyaprakash, principal secretary, department of state industries and commerce department, said, "I don't think there is any basis for these investment figures. Madhya Pradesh has invited not less than 6 per cent of the investment in India. Big companies like Reliance Industries, Hindalco and Essar have given shape to their plans and there are encouraging signs for prospective investment. As regards SEZs, two private SEZs have started taking shape in Indore and Chhindwara (Kamal Nath's constituency). We have also amended the Indore SEZ Act, which is now effective all over Madhya Pradesh."

During the past four years, several companies have proposed a combined investment of more than Rs 2 lakh crore; however, sloppy rules of land allotment and inordinate delay in facilitation have marred plans of a number of companies.

Further, the state government has yet to develop the second phase of the Pithampur (Indore) Special Economic Zone, sell an Indore IT SEZ and create a new multi-product SEZ in Gwalior.