The Madhya Pradesh government is looking at big-ticket investment from China even as it is plagued by a shortage of land, severe water crisis and costlier and unskilled labour. And, there is more to it.
Chief minister Shivraj Singh Chouhan, after returning from a recent trip to the East Asian nation, did speak of creating new industrial areas and a corridor in the state. However, insiders in his government — much like industrialists in his state — believe this would be a Herculean task, as Madhya Pradesh has only a few small pockets of land near the capital. They are insufficient to accommodate even small-scale industries, they note.
The state industries department, on the other hand, has pinned its hopes on a fund of Rs 1,000 crore (to be revised to Rs 1,200 crore), which is likely to flow from Housing and Urban Development Corporation (Hudco) to faster land acquisition and infrastructure creation for potential investors in Delhi Mumbai Industrial Corridor that will touch Pithampur, Mhow, Ujjain and Ratlam.
“We are developing three industrial areas near Bhopal,” says PK Dash, principal secretary (industries). “We have dropped the idea of making a film city in Bagroda, where we have 191 hectares. We also have identified another area of 406 acres in Tamot village of Raisen district and 145 acres in Acharpura near Bhopal, where (Anil Ambani-promoted) Dhirubhai Ambani University is coming up.”
But all these areas are very small to attract biggies of international repute. Further, they are all non-developed. What’s more, the state industries department’s arm, the Industrial Development Corporation, which was created to develop industries, is facing litigation — and is on the verge of closure.
MP Laghu Udyog Sangh notes that a Chinese large-scale investor requires a huge area not less than 50 acres for investment. “All these areas are suitable for domestic small-scale units,” notes its president R S Goswami.
According to insiders in the government, the Pankaj Munjal-promoted Hero Motors had earlier proposed a sports aircraft manufacturing project in Tamot village. It later dropped the plan, since the government demanded fund to develop the area.
Similarly a number of film-makers recently visited this city to develop 191 hectares of land in Bagroda village as a film city, but found it too small to create all necessary infrastructure.
The state industries department has another chunk of 2,100 hectare in Chachodia village, yet it requires a huge fund for development. A few more plots near Bhopal are small patches of 42 hectares, 57 hectares and 83 in towns like Pipalner and Vidisha.
The Industries department, though, has no option, but to develop industrial areas near Bhopal and Indore. “Even a town like Jabalpur requires significant investment in industrial infrastructure to attract big investment,” admits Dash. “We hope DMIC will bring some investment in the state.”
On the other hand, insiders in the department say, the HUDCO fund is likely to be consumed in land acquisition for DMIC area. An area of 217 acres is to be acquired for a proposed knowledge city in Ujjain, notices for which have already been issued. Another 805 acres is to be acquired for potential DMIC investors in Betma village.
During the last three year, the state attracted investment of nearly Rs 2.50 lakh-crore. Yet, the investment that has taken shape so far has not crossed even Rs 2,500 crore. Worse, the domestic investors are left with no room for expansion in Dewas, Ujjain, Pithampur, Indore, Mandideep and Malanpur.
