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Rs 6 lakh cr investment promised to Madhya Pradesh at Global Investors Summit

Business Standard:  October 24, 2016

Indore: Madhya Pradesh Chief Minister Shivraj Singh Chouhan said the state received investment proposals worth Rs 6 lakh-crore  at the fifth Global Investors Summit at Indore. He was addressing the concluding day of the two-day biennial summit. 

“Till recently, Madhya Pradesh was only known for its worst-ever industrial disaster — the Bhopal gas tragedy. It has now turned into the most-preferred investment destination of India. As we conclude today (Sunday) we have expression of interests to the tune of Rs 5,62,887 crore from 2,630 companies despite not signing any memoranda of understanding (MoUs) with any company,” the  chief minister said. 

Industry bigwigs said they would either enhance the quantum of investment or make fresh investments in the state.

The Aditya Birla group pledged an investment of Rs 20,000 crore in cement and expansion of Hindalco’s Mahan Alumina project in Singrauli, payments banking, mobile phone brand Idea and optical fibre sector. An equal amount of investment has been committed by the ministry of petroleum for setting up a solar power plant of 2,700 mega watt. Indian Oil Corporation (IOC) will chip in with Rs 4,800 crore for the venture. "IOC and Oil India (both owned by the central government) will set up the plant," said Dharmendra Prasad, minister of petroleum. Essar group has promised Rs 4,500 crore, 
Procter & Gamble has planned to invest Rs 1,100 crore, while Avgol would invest Rs 230 crore for making hygiene solutions. 

“The list of investors is very long,” Chouhan said. Yoga guru Ramdev, Hinduja group co-chairman Gopichand Hinduja and Anil Ambani on Saturday said they would also consider making investments but did not specify the quantum.

Announcing further steps towards ‘ease of doing business’, Chouhan announced that all land allocations would be online to maintain transparency and the exemption regime would continue even after goods and services tax (GST) roll-out. 

“As a result of our effort to allocate land through online application, we have received 30 online applications for land, we will allocated them the required area of land soon,” Chouhan said, “In providing further support to investors we will continue to offer exemptions (in tax) even after GST roll out. However we will form a committee under chairmanship of additional chief secretary that decide as to what will be way of offering exemptions and concessions.”

To provide comfort to investors, Chouhan further announced to make simple provisions in various rules and regulations.

 “We will ease our rules so that no investor will face legal action if violates any provision ignorantly. Also we will make provisions of land use change simplified for investment in public use like hospitals or educational institutes. The land use change will come through public and semi-public land use model. A portal to be named “INVEST” and to be launched soon will provide a communication platform to the investors with the state government,” he said. 

A ready-made garment policy, a multiplex policy to allow 200-seating capacity instead of the existing 500-seater would also come up soon. The state would also conduct an extensive survey of minerals before going for auction. “To provide industry-specific skilled workers to the industry we will provide custom-made training facilities through placement centers to be developed on public private partnership mode,” Chouhan said.

Chouhan also urged the Central government to support in making Bhopal and Indore as international airport destinations. “Both the states have all facilities to accommodate international flights but we need overseas flight operations as soon as possible,” the chief minister said.

Speaking on the occasion Union forest minister (independent charge) Anil Madhav Dave appealed investors to see industrial potential in forest, environment and climate change. “Grass and Bamboo offers immense potential to the investors. Our ministry is ready to support any investor and faster the documentary process. While Uraban development minister Vankaih Naidu said the state of Madhya Pradesh is moving fast as it has five cities and two more will come in January next year. “Also it has 34 Amrut towns and it offers immense potential to invest in the sector,” he said. The time has come for investors to be part of MODI drive, “not prime minister MODI but Making of a Developed India,” he said. While Union Minister for Social Justice said Madhya Pradesh has potential for making prosthetics for ‘Divyang’ as country has to import a large quantity of them. The next summit will take place during 2019. “Since elections will take place in 2018 November and code of conduct will remain effective so the next summit will take place on 16-17 February 2019.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.