Presidents Rule In Up Evokes Mixed Corporate Reaction

Corporate houses are not sure about the fate that awaits their projects in the state. The absence of a popular government have even led many to toy with the idea of dropping their projects altogether.

This does not, however, mean that the industry as a whole believe that only an elected government could solve all their problems.

When Mayawati emerged as a strong contender during the Assembly polls, the industry in general was dismayed.

The Mayawati regime failed to give any reason for cheer for the industrialists and most of them love to put the Mayawati days behind them.

In fact, the Birla group might have uncorked the champagne bottles when she fell from power.

When she was in power, the group could not get Mayawati to give the green signal for two projects.

Even under Central rule, the experience of the corporate houses is no different. The bureaucracys attitude to their Roza power project is anything but positive.

However, the signing of heads of terms between the company and the energy department is expected to pave the way for the signing of a final power purchase agreement (PPA).

The general feeling is that UP, at this point of time, needs a strong leadership that can take it forward.

It is already on the edge and if there is no proper leadership, Uttar Pradesh is poised to go down to a level from where it would be difficult for it to recover, says Upendra Kumar, managing director of Uptec.

A Picup official says the situation is pretty bad and all hopes, or whatever was left of it, have been dashed.

Noida, it seems, has isolated itself from the mainstream. The response from the investors are tepid.

An SIDC official ,however, was certain that industry will come to Noida, and says we are well prepared to welcome them. They have no option, since they are being driven out of Delhi.

Some senior bureaucrats point out that the Governor will shortly have to decide whether to take major decisions or should wait for a popular government to assume power. So far, the administration has not taken any policy decisions and has been implementing the policies on which there is a general consensus.

A decision on the privatisation of the sick and ailing public sector units (PSUs) have been stalled for one reason or the other and needs to be addressed immediately.

The latest in that lengthening list is Uptron(India) Ltd, which has been put up for privatisation.

At present, the situation in the state is in a flux and things will crystallise only in the next few days.