Belying the Madhya Pradesh government’s claims, only a tiny percentage of MoUs signed by the state government over the years has translated into actual investment, official data from the information and technology department reveal
The figures, provided by the IT department under the national data sharing policy, suggest that 173 large and medium industries have been set up in the state with an investment of Rs 32,881 crore in the past 10 years (2004-14).
Industry sources say that standalone figure does look impressive, but it reveals the real picture in the light of the fact that the state government has signed memoranda of understanding (MoUs) in excess of Rs 8 lakh crore at various investor summits held from 2007 to 2012.
The data does not indicate MoUs signed for non-industrial purpose, such as construction of highways, it does give a fair indication of very poor record of implementation of investment proposals over the years even taking into account that some projects are still in the pipeline, they say.
The latest data assumes significance as until now the government agencies have been coming out with different investment figures at various forums and the government has been constantly revising the figures.
Confederation of Indian Industry’s state council chairman Girish Mangla says, “The data indicates that many investors who had signed MoUs in previous summits were not serious, but is also a reflection of global economic slowdown.”
Assocham secretary general DS Rawat says that the pace of implementation of projects in the state has remained tardy. “The state will have to remove certain bottlenecks in terms of availability of raw material, land and clearances (if it wanted results on the ground),” he says.
However, state industries commissioner VL Kantha Roa says that the figure of Rs 32,881 crore investments made by the large and medium industries was excellent.
“We had announced during global investors’ summit in 2014 that the state has received Rs 1.83 lakh crore worth investments, which included completed projects and ongoing projects. Some projects get delayed or cancelled due to extraneous factors such as change in mining policy that is not in my control,” he said.
Pithampur industry group president Gautam Kothari says there are instances where the investment proposals have been repeated by certain corporates.
Slow industrial growth aside, MP registered 11.08% GDP growth in 2013-14 as against India’s growth rate of 4.9% during the same period, largely on account of spectacular performance in agriculture and allied sectors.
Period: 2004-05 to 2013-14
173 units set up
Rs 32,881 crore in total investment
Rs 8+ lakh crore worth of MoUs signed
11.08% growth for state in 2013-14
(Includes non-industrial sector investments, which is under 10%)