Second Global Investor’s Summit at Khajuraho: Few Facts

In the sequence of Investors Meet a second meet was organized at Khajuraho on 22nd-23rd October 2010. Before this meet Government of MP had organized 7 investors meets at various places of MP and in overseas also. Besides these meets several MOUs were signed at state headquarters also. In total 320 MOUs were signed before this meet and out of these 320 MOUs 87 MOUs are cancelled.

Industrial Promotion Policy, Govt. of MP, 2010

For providing facilities or attracting companies to invest in the state and to participate in economic development of State, Govt. of MP constituted an Industrial Promotion policy in 2010, which will be effective for five years from 1st November 2010.

Main objectives of this policy are:

• To ensure faster economic development and employment generation by sustainable use of the resources available in the State.
• Pay special attention on promotion of small and medium enterprises to avert the adverse impact of global recession on industrialization in Madhya Pradesh.  
• For ensuring speedy implementation and timely approvals of investment proposals under Madhya Pradesh Investment Facilitation Act 2008, rules and procedures would be streamlined and three-tier empowered committees will be made more effective and pro-active.
• Industrial infrastructure in the State will be upgraded and a Land Bank will be created. Efforts would be made to provide land to investment projects without difficulties

During the second Global Summit 75 MOUs were signed by 66 companies. Govt. of MP is continuously advertising that they are attracting companies from outside the State to invest their money in the State and to provide employment to the local persons. But the fact is that out of 75 MOUs 30 MOUs (40%) were signed by the companies already based in the State. 10-10 companies (13.3% each) are from Maharashtra and from New Delhi. 

Companies signed MOUs based at

*One company Khajuraho Eco Business City planning to develop Integrated Rural Area in Chhatarpur did not disclose its amount of investment and its address as well. Two other companies Prem Prakash Tubes Pvt. Ltd. and Vineyard Resorts Inc Holdings did not disclose their address.    

In all 74 companies reported about their amount of investment for the project and the range of investment varies from 25 crores to 33147 crore Rs. and 14 projects are having budget of less than 100 crore Rs., 23 projects are investing more than 1000 crores Rs.

Two third (50) companies reported that they provide direct or indirect employment provided to persons in the projects, but it is not clearly mentioned whether this No. of employment is being provided to local persons residing in district, State or they are hired from outside the State. 

Types of Projects to be implemented

Out of 75 projects signed during Second Global Summit at Khajuraho 12 companies mentioned two or more projects to be performed. While Jaiprakash Associates 5 different MOUs 5 other companies also signed 2 or 3 different MOUs for some other project or same project at another place (district).

In this phase of Global Warming, “Forest of cement” is a major problem. Nearly one third (21) of the projects signed during IInd Global Summit are going to establish Cement Plants. Out of these 21 plants 9 are being established at Satna district, 2 at Rewa and 5 at Panna district.

Almost everywhere there is quite delay in implementation of such a huge investment but surprisingly this summit was held by the end Month of October 2010 and till starting of 2011 (January 2011), i.e., within 3 months land is being acquired for 41 projects. In Satna district 16807.85 hectare land was acquired by 9 projects. While almost same area (16203 hectare) is being acquired by 4 companies in Panna district which means on an average 4050.75 hectares of land is being acquired by each company.

Region wise land acquired by the companies

For rehabilitation of displaced people due to various development projects Govt. is not in easy position to provide them adequate land.  A family requires almost 5 acres of land for their adequate livelihood purpose. Thus if we convert land acquired by these 41 companies (51221.781 hectares) in acres, land allotted to the companies is 126571.777 Acres. Thus by calculating it accordingly 25,314 families can be settled on this land. This is the figure of almost half of the companies signed their MOUs during 2010 and the land acquired by them is also not sufficient they are going to acquire more land for initiating their projects. When all of the companies those signed their MOUs during 2010 and other 320 companies signed their MOUs during previous summits has acquired land then what will be the number.

Govt. Land Acquired

Out of these 41 projects, 4 projects reported for acquiring Govt. land in three districts one-one each in Dewas and Mandsaur and 2 in Sehore district. This land measure about 92.2 Hectare. Other companies did not clearly mention that the land acquired by them is Govt. land or Private land.

Although every project need electric supply for implementing activities of project. Even in case of establishment of captive power plants also at initial stage companies need power supply for construction work but out of 75 projects only 7 projects mentioned there need of electricity and these needs are also mentioned in varied units like KW, KVA, MW, KV, HT/LT.

Madhya Pradesh is already facing crisis of water since past several years. Due to this draught many people families and individuals are forced to migrate to earn livelihood. For every living thing (whether plant/animals/human) water is a basic amenity and for manufacturing purposes, cleaning and drinking purposes every project require water but out of total 75 projects signed only 12 (16%) stated there requirement regarding water and it is also in vague units i.e., TLPD, KLPD, KL, M3/day, Ltr/day, Cu. M./hr., KL/day, Ltr/hr. etc. Source of water was also mentioned by 12 projects and 2 stated Wainganga River, 3 stated ground water or nearby sources and one-on each from Canal of Bansagar Dam, Tamas River, Narmada River, Dhasan River, Amaran River, Maan Dam, Anas River will be the source of there water requirement. Thus it is very difficult to calculate which project needs more water. In Captive Power Plant and hydro electric plants requirement of water is quite huge but it can be reused and some quantity of water is being utilized during various procedures of electricity generation.  

- Apara Vijayawargiya