Indian Express,BBSR: Orissa has secured second spot as far as the India Inc.’s investment plans in 2009 are concerned. Despite poor implementation record and the economic slowdown, the State has garnered a total private domestic investments worth Rs 2,00,846 crore in the year.
Only Gujarat with a total of Rs 2,45,352 crore investment plans surpassed it. This has been revealed by a recent ASSOCHAM study titled ‘Corporate Investments across States and Sectors in 2009’.
The study has noted that the domestic investment announcements of India Inc. registered a growth of 16 per cent in 2009 with Gujarat, Orissa and Andhra Pradesh emerging frontrunners. The total investment plans of India Inc. increased significantly from Rs 13,80,099 crore in 2008 to Rs 15,94,203 crore in 2009. Out of which Gujarat, Orissa and Andhra Pradesh cornered a share of 15.4 per cent, 12.6 per cent and 8.1 per cent respectively.The report, however, points out that the implementation of these investment projects has been hampered by a slew of hurdles.
These include land acquisition problems, bureaucratic inertia, ongoing economic slowdown and depressed export market conditions. It urged the governments to address these issues on priority basis.
Orissa has attracted massive investments primarily because of availability of rich mineral resources such as coal and iron ore along with cheap manpower. Steel and power were among the sectors which attracted maximum investments in 2009. But, it has clearly pointed out that Gujarat, Karnataka and Maharashtra lead in possessing a convincing investor-friendly image.
A glance at the sector wise investments nationally reveal that power sector has bagged the maximum investments totalling Rs 4,14,327 crore or 26 per cent of the overall investment plans.Real estate at Rs 2,57,314 crore, energy Rs. 1,98,565 crore, metals & mining at Rs 1,59,534 crore, infrastructure at Rs.74,210 crore, hospitality at Rs 43,746 crore, auto components Rs. 38,150 crore and telecom at Rs 34,461 crore follow. States like Gujarat, Andhra Pradesh, Karnataka and Maharashtra have received major investments in energy, real estate, infrastructure, hospitality and telecom etc.The moot point in this context is with environmental clearances post-Copenhagen going to shroud many of the steel and coal-based power projects in Orissa, and with the US and EU’s insistence on the World Bank not providing loans for coal-based power projects in developing countries, may hamper investments in these sectors in 2010.
Thus, the Government here has to urgently diversify the investment portfolio with appropriate incentives to the sectors like solar/clean energy generation, infrastructure, telecom and real estate to stay in the race.
COMMENTS
Investments in Orissa comprises Mining and metallurgical projects. Such projects create Billionaires like Mittal,Jiandal,Bhusan,Agarwals, POSCO, etc These projects have more downsides than than the benefits which will percolate to the local people. Mining causes wide spread deforestation, degradation of Soil, pollution affecting water sources, agriculture, human living etc. making the local people poorer. Mining provides very little employment to the locals. The State gets pea nuts as Royalty. Thus even after producing 100 million tons of thermal coal and 100 million tons of iron Ore per annum, Orissa remains the poorest State in the Country. Remedy: Stop mindless mining and conserve forest & land. raise royalty on Minerals & Coal to at least 50% of the International Market Price, FOB-Indian Port.
By J.N.Mahanty
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