Chhattisgarh has projects worth Rs 57,442 crore remaining stalled in the State, said Secretary General of The Associated Chambers of Commerce and Industry of India (ASSOCHAM) D S Rawat on Tuesday.
“We are unaware of the problems which have kept the projects stalled in Chhattisgarh. The ASSOCHAM and the Chhattisgarh Government can work together to explore reasons behind projects remaining stalled in the State,’ he said while addressing a news conference here on the occasion of the release of ASSOCHAM study titled : ‘Chhattisgarh-The Way Forward’ jointly by State Agriculture Minister Chandrashkehar Sahu, ASSOCHAM Secretary General DS Rawat and Chairman of ASSOCHAM Investment Promotion Council for Chhattisgarh Ravi Wig.
There are 181 projects in the State which are currently under implementation.The most satisfying aspect of development initiatives in Chhattisgarh had been that it had done exceptionally well in Roads, Railways and Agriculture sectors, Rawat said. Moreover, there are 18 projects that had been approved by the State government but have not moved from where they were till June 30 this year, he said.
Rawat said that the absence of the Small scale sector in Chhattisgarh is a matter of concern. The Small scale sector could boost employment opportunities in the State. On the agriculture supply chain side, Rs 20,000 crore worth of vegetables get wasted in Chhattisgarh annually he said adding, ‘Why not the Chhattisgarh government develop cold storages with surplus power at its disposal in the State.’
The industry is ready to invest in Chhattisgarh and establish cold storages.’ ASSOCHAM is willing to extend help in this regard,’ he said. Replying to a query that the Food Security law ensuring cheap foodgrains for the poor in Chhattisgarh although helping the poor receive food had created problems of labour shortage in the industry with workers not willing to put in all days at work due to availability of cheap and sufficient foodgrains to make a living in a month, Rawat commented : ‘Nationally , one would agree that the Minimum Wages has created problems of labour shortage in the Agriculture and Real Estate sector’.
Chhattisgarh has still a long way to go in the domain of development as high level of poverty still remains a concern compared to the national average, he said. Ravi Wig, Chairman, of ASSOCHAM Investment Promotion Council for Chhattisgarh stated that the industry body would like to adopt the ‘cluster approach’ under Public Private Partnership (PPP) model for industrial development in Chhattisgarh, said Chhattisgarh could be hub for power intensive industries: ASSOCHAM study
Chhattisgarh holds tremendous potential to emerge as a hub for all power intensive industries as the power sector accounted for lion’s share of about 61.4 per cent in the total outstanding investments worth over Rs 4.6 lakh crore attracted by the State as of June 30, 2013, according to a recently concluded study by ASSOCHAM. With 92 live investment projects , the Chhattisgarh State attracted outstanding investments worth over Rs 4.6 lakh crore in the power sector alone as the State is blassed with huge reserves of coal thereby offering cheap pithead power generation opportunities, it stated.
There is a need to create a favourable investment environment to increase industrial production and create employment opportunities across the State, the study pointed out. ‘Besides, the State government needs to meet the requirement of a congenial incentive policy and extend robust infrastructure support to lure domestic and foreign investment in priority industries,’ it suggested. ‘Chhattisgarh had been reeling under massive insurgency problem and this might lead to flight of industry thereby keeping domestic and foreign investors at bay. As a result the State needs to take concrete steps towards countering insurgency’, it stated.
‘Insurgency remains a huge problem’
‘Insurgency is a huge problem for the industry. This impacts investor sentiment. The investors have lots of opportunity in Bastar but both the Centre and the State government would have to come up with policies for development in the insurgency affected areas, Rawat said Both the Centre and the State government have to work in co-ordination to tackle the menace of insurgency in Chhattisgarh, he said.
When asked about his opinion on the real estate investment scenario in Chhattisgarh he commented : It’s barely Rs 3,000 crore. This currently the kind of investment which is made in the realty business for a single township these days’. ‘Fertile land will not be allowed for commercial use’ Agriculture Minister Chandrashekhar Sahu on Tuesday admitted that 20,000 acres of fertile land in Chhattisgarh is going waste in State. The land Revenue Board will ensure that fertile land is not used for any commercial purpose. This will take some time but will benefit the agriculture sector, he stated.