'MP can become India's economic heart after GST launch'

Q&A with Shivraj Singh Chouhan, Chief Minister, Madhya Pradesh

Shivraj Singh Chouhan, chief minister of Madhya Pradesh, talks to Sanjay Jog during a Mumbai visit for an investors' conference, on his optimism regaqrding the coming national goods and services tax (GST). Edited excerpts:

How is Madhya Pradesh preparing for implementation of GST?

Our legislature will have a special session on August 22 to pass the Constitutional amendment for GST. The government will protect the interest of investors; they'll continue to get the present benefits. Initially, we might have some revenue loss but in the long term, MP will benefit a lot. Our growth rate will achieve a new high and with the shift, there will be further ease of doing business. At present, investors were thinking twice before making any commitment, due to multiple taxes.

As for the concerns raised by states, the Centre has addressed these. When this government at the Centre commits something, it keeps its words.

Will GST help MP outpace competing states as an investment destination?

MP is geographically at the country's centre. After GST, it will become the economic heart. In the six states bordering ours is nearly half of India's population. There is lowest production cost in our state, due to availability of land and labour. It is ideal for investors. The state has an industrial land bank of 25,000 hectares; nearly 10,000 ha is already developed.

At the previous Global Investors Meet we held in 2014, there was a total investment commitment of Rs 2.5 lakh crore. We're now holding another GIM at Indore on October 22 and 23. We've identified eight sectors for investment -- automobiles & engineering, agricultural business, textiles, renewable energy, food processing, pharmaceuticals, urban development and tourism.

What, according to you, should be the GST rate?

The empowered committee of state finance ministers will ponder all issues and decide. We will put our views. The principle should be that commodities consumed by the poor or the common man should not become dearer. At the same time, the rate should be such that the government will mobilise enough revenue to continue to discharge its duties, for developmental and welfare work.

There is talk of capping the GST rate at 18%.

After the empowered committee takes up the issue, it will go into details.

The Centre has cracked the whip on cow vigilantism and asked all states to take prompt action against offenders. What is your state's response?

Madhya Pradesh is a peaceful state. There are no law and order issues. Prime Minister Narendra Modi has denounced cow vigilantes and asked people to beware of its 'fake' protectors, trying to divide society and the country, and asked the states to severely punish them. We will take stern action against those who under the garb of cow protection are doing wrong things.