Some big-ticket investment projects signed during the previous global investors summits (GIS) in 2012 and 2014 in Madhya Pradesh have failed to materialise as the government prepares ground for the summit this year.
The Jaypee Group had promised an investment of Rs 35,000 crore during GIS 2014, mainly to set up a microchips manufacturing facility. The company was to invest Rs 18,000 crore through Jaiprakash Associates in the first phase but the venture has remained a non-starter.
Sahara Group had inked a deal in 2012 to invest Rs 20,000 crore
During GIS 2012, Sahara Group had inked a deal with the state government to invest Rs 20,000 crore in dairy and agro sector but the projects are yet to take off. Addressing the summit in October 2012 in Indore, Sahara Group chief Subrata Roy had said, “We are going to make a foray into dairy business by opening the world’s biggest dairy in MP. The dairy will have 25 lakh cattle. We plan to produce 21 lakh litres of milk daily.”
Nearly four years after inking the deal, there is no progress on the ground. An e-mail query to both the companies went unanswered.
“Both the companies are facing fund crunch. This is the reason why the projects are not taking off,” an industry department official said.
Major projects announced during GIS 2012 kept on the back burner
Some other major projects announced during GIS 2012 have been kept on the back burner. Spokespersons of automobile company Mahindra and Mahindra (M&M) had shown interest in investing nearly Rs 3,000 crore to set up a SUV manufacturing facility in MP. Company authorities were also shown 500 acres of land in Bagroda, 20 km from Bhopal. But the company refrained from signing an agreement with the state government.
Similar major projects such as Delhi-based Surya Global’s foray into cement sector and Hyderabad-based Suryachakra Group’s investment in the power sector have been shelved after agreements were signed due to delay in mining permissions.
CM meets investors in New York
A high-level delegation led by chief minister Shivraj Singh Chouhan arrived in New York on Sunday and was greeted by members of Overseas Friends of BJP (OFBJP). The CM tweeted to laud Indians in the US for their skills.
The visit to New York is aimed at attracting investment ahead of GIS 2016 to be held on October 22 and 23 in Indore.
During the later half of Monday, Chouhan is slated to meet potential investors including Kaul Group managing director Rajeev Kaul, MasterCard executive vice president Tara Nathan and director, government affairs (Asia Pacific) Claudio Lilienfeld. He met representatives of pharmaceutical major Pfizer and technology company Xylem on Monday morning. On Tuesday, the CM will meet Chaitanya Kanojia, co-founder, Starry; Jeff Toll, CEO, managing principal, RMC and Rajeev Nair, founder and CEO of Solarinno. A number of memoranda of understanding (MoU) are expected to be signed during the visit. Chouhan will have also meet leading business leaders on August 31 and will return on September 2.