Rs 3 lakh crore investment boost for Jharkhand
State government inked 210 MoUs with different companies.
Jharkhand Chief Minister Raghubar Das sat down for an exclusive interview with The Sunday Guardian. Excerpts: Q. During the initial years after it came into existence in 2000, Jharkhand largely went into wooing mega investments. However, now your government is focusing more on small and medium scale industries. What led to this major shift in strategy? A. Jharkhand already has presence of big industries like Tata Steel, Steel Authority of India Limited (SAIL) and Heavy Engineering Corporation. But all this has not eradicated poverty, unemployment and migration. We wanted integrated development. Therefore, we decided to go for small and medium scale industries which have a big role in generating employment. This will ensure that there is participation of the people in the development process. Q. “Momentum Jharkhand” was the maiden Global Investors’ Summit organised by the state. How satisfied are you with its response? A. I am happy that it has created a buzz at the national as well as international level. We have been successful in telling the world that Jharkhand is ready for investments. There were over 11000 delegates, including 600 from 26 foreign countries, which in fact surpassed our expectations. As many as 210 MoUs worth over Rs 3 lakh crore were signed during the event, which indicates that the industry responded well to our call to invest in Jharkhand. Q. How will you ensure that the MoUs which have been signed see the light of day? A. We have decided to set up the Chief Minister Investment Promotion Board which will do the monitoring of all the MoUs. I will personally review the progress of the projects on a monthly basis and see if there are bottlenecks. I will try to solve them on the spot. Our aim will be to ensure that the projects come on the ground in time. In fact, we have fixed timelines for the projects. While 172 MoUs will come on the ground within two years, 38 MoUs will be operational within three years. I can assure you that my government will start working from today itself towards implementation of the MoUs which have been signed during the summit and within the stipulated time-frame. Q. What kind of support are you getting from the Centre in your efforts to bring in industries in Jharkhand? A. We have given the call for “Make in Jharkhand”, which is inspired by Prime Minister Narendra Modi’s “Make In India”. The Centre is extending full cooperation to our efforts. As many as 14 Central ministers attended this summit, which is a testimony of the full-fledged support to our efforts. I am hopeful that Jharkhand will become Number One state in the next years. Q. Why industries should invest in Jharkhand? A. Jharkhand has the perfect ecosystem for investments. We have a good, skilled labour force, which I think is the biggest asset. Nearly 60% of our population is between 15 to 59 years of age. The gross state domestic product growth rate is 12.1% and the growth rate of per capita income is 11.10%. This demonstrates that Jharkhand is a fast emerging economy in the country. We have 2.1 million acre ready land bank. Moreover, we have constituted a good team of experts who would support and facilitate investors at every stage. For convenience of the investors, we have simplified the rules. There is a single window for various clearances. And add to that, we have vast natural resources -- about 40% of country’s mineral reserves. No wonder, we are the fifth largest recipient of foreign direct investment (FDI) among all other states in India and we are among the leading states in ease of doing business.
Jharkhand took a decisive step towards joining the elite league of developed states by joining hands with industries, who pledged to invest over Rs 300,000 crore in the state in the next few years.
At the maiden Global Investors Summit branded as “Momentum Jharkhand” organised here this week, t he state government inked 210 MoUs with different companies, mostly medium and small scale, which would generate employment for over 2.10 lakh people. Chief Minister Raghubar Das promised to monitor the progress of the MoUs every month so that these are implemented within a time frame.
The event, held at the Mega Sports Complex, was termed by many as the beginning of a “new innings” for Jharkhand, which came into existence about 16 years ago. There were efforts to bring in investments in the state by successive governments in the past which somehow could not fructify, primarily because of political instability. The state saw nine governments and three spells of President’s Rule, till 2014. However, now with a stable government in place and a friendly government at the Centre, Jharkhand, as Chief Secretary Rajbala Verma put it, is the “most investment ready” state. “Jharkhand is eastern India’s fastest growing economy, poised to become the most sought after investment destination,” she said.
The inaugural day (16 February) coincided with Tata Steel’s entry into Jamshedpur 105 years ago. “They (Tata Steel) chose this place for investment. They must have seen some good things here at that time. And now, they can say that they made the right choice,” said an official.
Chairman of Tata Sons, Ratan Tata, recalled his association with Jharkhand when he got his first job in Tata Steel in Jamshedpur, where he lived for six years. “Prime Minister Narendra Modi is on the threshold of projecting a new India in India. Jharkhand is one such place which offers great opportunities. Industries should embrace these opportunities for which the time has come. The state government is keen to progress,” he said.
Former Team India skipper M.S. Dhoni, the brand ambassador of the event, noted that Jharkhand is not only about mineral wealth and reminded the gathering that the state was also number two in peas and potato production. “I speak here as a boy born and brought up here and not as a celebrity or cricketer. The state has immense potential which could not be harnessed. Political instability (in the past) hurt us a lot. But it is now ready for investments. People talk about security. But I can say that it’s at par with any other state,” he said, and invited industries to invest in Jharkhand, saying “in your success, we shall measure ours”.
Some of the major investment proposals for which MoUs were signed included Jindal Steel and Power Limited ( JSPL) (Rs 20,000 crore), Adani Group ( Rs 23,700 crore), National Highway Authority of India (NHAI) Limited (Rs 1,000 crore) and Adhunik Power and Natural Resources (Rs 850 crore).
In order to keep up the momentum generated through the exercise, Chief Minister Raghubar Das announced holding of Jharkhand NRI Summit from 28- 30 November in 2018 and another Global Investors’ Summit on 19-20 February 2019.
The event witnessed par- ticipation of over 11,000 delegates, including 600 from 26 foreign countries. It was attended by top captains like Ratan Tata (Tata Sons), Kumar Mangalam Birla (Aditya Birla Group), Shashi Ruia (Essar Group), Naveen Jindal ( Jindal Steel and Power), Anil Agarwal ( Vedanta Group), Rajesh Adani (Adani Group) and Naushad Forbes ( Forbes Marshall).
The event also marked the presence of envoys of Japan, Australia, Tunisia, Mongolia and Czeck Republic. Union Ministers who attended the conclave included Arun Jaitley, Ravi Shankar Prasad, Nitin Gadkari, Piyush Goyal, Smriti Irani, Venkaiah Naidu, Rajiv Pratap Rudy, Nirmala Sitharaman, Ram Kripal Yadav, Jayant Sinha and Sudarshan Bhagat. Telecom Regulatory Authority of India (TRAI) chairman R.S. Sharma also addressed the conclave. Jharkhand has enormous potential for development. It will grow into another industrial centre of India. I appeal to my contemporaries to embrace the op- portunities in Jharkhand. The time has come for a new Jharkhand and a new India. Jharkhand has one of the top investment destinations since 1980s. It is the most welcoming state. It ranks sixth in ease of doing business. I am very bullish on the prospects in Jharkhand. In most places, we face resistance. But it was a surprise for us when we started our project at Patratu where we were welcomed by the people. The bureaucracy is extremely helpful. They want Jharkhand to develop. Now with political stability, Jharkhand will go places. We a p p r e c i a t e t h e Jharkhand government’s resolve to attract investors. Chief Minister Raghubar Das has exhibited exemplary leadership by hosting the summit. Setting up a plant i n Jharkhand will be like home coming for me. I have spent many years in Ramgarh, Hazaribagh. Poverty and unemployment can be eradicated only by setting up industries.