Official figures refute MP govt claims

It's official now. Madhya Pradesh has attracted investment proposals of only Rs 1,945 crore since the announcement of the industrial policy by the BJP government.

The data released by the Madhya Pradesh Trade & Investment Facilitation Corporation contest Industry Minister Babulal Gaur's tall claims of investment proposals of Rs 52,000 crore in the past two years.

Today, Gaur was questioned by members of the opposition in the Assembly, and the media. The figures released by the Madhya Pradesh Trade and Investment Facilitation Corporation (TRIFAC), a single-window clearance agency working under the minister's department, do not square with what the minister has been saying all along. Further, the minister drew a blank when asked to give investment figures.

Six companies have proposed to invest Rs 1,945 crore, according to figures released today by TRIFAC, while 14 companies, with expansion plans of Rs 2,111 crore, have been offered special packages under the new industry policy. The other investment proposals, according to TRIFAC data, are of less than Rs 1,000 crore. The investment proposals have been received by the Apex Investment Promotion Empowerment Committee after the announcement of the industry policy 2004.

However, Gaur harped on the Rs 10,000-crore Bina refinery project and Rs 35,000 crore private power projects, and said during his tenure as chief minister the state offered a commercial tax deferment of more than Rs 250 crore to the project. However, he was not forthcoming as to how many jobs will be created in the state through this refinery.

He also evaded a direct reply on direct employment through Rs 1100 crore investment by SP Oswal promoted Mahavir Spinning Mills in Budni (Sehore district) in Satlapur near Mandideep. The company sources told Business Standard privately, "We will not go for fresh recruitment and will reduce the excess fat in the group by shifting it to the new unit."

A government insider told Business Standard that only the Jaypee group has signed a memorandum of understanding with the state government for Rs 4000 crore power project. A land allotment issue is still pending with the government on number of projects. To which Gaur said, "Some issues are confidential." The state government only can offer 50 pe r cent concession on premium on 20 acres of land if the investment is minimum Rs 1,000 crore. But in case of Jaypee group power project, the land requirement is not less than 5000 acres.

The minister also ducked a direct reply today to Arif Aqueel a member in State Assembly on the outcome of his foreign jaunts to Singapore, Malaysia, New York and London. "The results will be visible later,'' he said ducking a direct reply to the member on his question about the size of investment and job opportunities created in state capital so far.