Maharashtra number one in industrial development, attracting investments: Prakash Mehta

The newly appointed industries minister in the state assures drastic cut in clearances needed for investor

In a volte-face, the newly appointed industries minister of Maharashtra, Prakash Mehta, on Friday said the state was number one in industrial development and the most-favoured destination for domestic and foreign direct investments.

“Maharashtra is number one, considering its geographical spread. With the Bharatiya Janata Party (BJP) government in power, it will be our attempt to retain its number one position in the future. There is a drastic change in sentiments and mood among investors after BJP coming to power in the state and also at the Centre. Investors are quite keen to make their investments in Maharashtra,” Mehta told Business Standard.

He added he will make all efforts to bring back those investors who have left the state during the previous regime. He assured of an investment-savvy atmosphere and pro-investment policies.

Incidentally, Mehta and the BJP had led a scathing attack on the Congress and Nationalist Congress Party, claiming that Maharashtra has lost its glory and it has been overtaken by Gujarat in particular.

Prime Minister Narendra Modi, during election campaign rallies, had said the 15-year-rule of Congress and NCP had “destroyed” the state.

Gujarat chief minister Anandiben Patel had said Maharashtra lagged behind her state in growth during the 15 years that the Congress and NCP alliance was in power. She had also said if BJP were voted to power it will work for all-round development.

Mehta’s U-turn on Friday will certainly bring cheer to Congress and NCP as their stand gets vindicated.

The industries minister, who held a three-day review of the department, admitted that at present, an investor has to seek a whooping 76 clearances and no-objection certificates to set up a project in the state. This is quite high compared to other competing states.

“It will be the government’s objective to reduce this number drastically,” said Mehta, adding: “This will save time and cost overruns. Besides, a core team of four officers will be appointed for project clearances in a time-bound manner. All project clearances and letters of intent will be given in the most transparent manner.”

Mehta, who is also the chairman of the state-run Maharashtra Industrial Development Corporation (MIDC), said the corporation had acquired 84,000 hectares of land since its establishment in 1962. Another 10,000 hectares were at various stages of acquisition.

“Land acquisition will be put on a fast track according to the provisions of the central act and with the MIDC’s own compensation package. Infertile and barren land will be acquired. However, if a patch of fertile land falls in the total land acquisition, we propose to give its owner additional compensation,” the industries  minister said.

On the current sorry state of infrastructure in most of 281 industrial estates run by the MIDC, Mehta said it will be upgraded on a priority basis.

“Those units, which are closed because of want of infrastructure, will be provided assistance so that they can restore their operations.”