The reforms drive launched by Rajasthan for ease of doing business was hailed on Thursday by industrialists and politicians, who promised more investment that would boost the State’s economy as well as that of the country.
While describing the reforms as bold steps, billionaires, including Anil Ambani, Gautam Adani and Kumar Managalam Birla, said they would invest in different sectors in the State. Chief Minister Vasundhara Raje, who is seen as spirit behind the revamping of the politically-difficult labour rules, said the State will get an investment of Rs3,30,000 crore through 295 Memoranda of Understanding (MoUs) with various firms which may generate about 2.5 lakh jobs.
“Path-breaking reforms have been carried out in labour sector, education, health care, water, power and infrastructure. For me the resurgent Rajasthan is not a brand or slogan, it’s a movement embracing entire spectrum of governance, society and businessmen,” said Raje at the Resurgent Rajasthan Partnership Summit 2015, organised by the Government of Rajasthan in association with the Confederation of Indian Industry (CII) on Thursday.
Union Finance Minister Arun Jaitley said, “The ease of doing business is not merely a slogan. It actually involves cutting down the time period between today, when all these investors have decided to invest in Rajasthan and the actual launch of their projects.”
The FM called for corruption-free governance, reasonable tax rates and non-discretionary allotment of natural resources to make it easier for companies to do business in India. “The States to compete among themselves to provide most investor-friendly environment, saying ease of doing business is not merely a slogan,” Jaitley said, adding, “For the actions that the Centre and States are taking, there is a huge amount of public support and the onus on all of us, therefore, is to open our doors wide for those investments.”
In order to encourage the investors, the FM underlined the need for making sure that tax rates remain at reasonable levels so that the rates of taxation are not so onerous or the policy of taxation is not so aggressive that it deters investors away.
“It was necessary to make sure that all facilities from capital to land to natural resources are quickly made available in a non-discretionary and non-arbitrary manner to investors,” he said.
As far as investment cloud in the State is concerned, Raje said, “We have inked 295 MoUs worth Rs 3.3 lakh crore that will generate 2.5 lakh jobs in the State. With Rs 10,000 crore investment committed by Chemicals and Fertilisers Minister Ananth Kumar in the State, various industries and institutions have pledged investment of about Rs 3.3 lakh crore,” she added.
Among the major investment proposals, Adani Group Chief Gautam Adani announced his group’s plans of investing Rs 10,000 crore over the next four years, while Aditya Birla Group Chairman Kumar Mangalam Birla said the group would invest a total of Rs 11,000 crore - Rs 7,000 crore in the cement sector, Rs 3,000 crore in solar power business and rest Rs 1,000 crore in mobile business sector.
Anil Ambani-led Reliance Group announced plans of Rs 6,000 crore investments in the solar sector. Appreciating the effort made by the Rajasthan Government, Ambani said, “Rajasthan has taken a lead in initiating reforms in the areas of labour and e-auction of minerals.” Describing these as bold steps, he added, “Other States have to emulate in order to compete with Rajastan.”
Also, Hero Motocorp Chairman Pawan Munjal announced to set up state of the art R&D centre in Jaipur over and above pledging further investment in solar energy. Besides, Singapore said one of its airlines has decided to start a direct flight to Jaipur.