Jharkhand-the most sought destination by investors

By Sanjeev Shekhar

Amid political upheaval and uncertainty, the state of Jharkhand has always been one of the most sought after destination for the prospective investors and industrial houses. In fact, the poor logistics has also never discouraged the mega investors to come down to the state to establish their shops.

States like Gujarat, Maharastra and Karnataka might be more developed than Jharkhand but the fact is that this state has the potential of alluring investors and mega investors in large numbers and can boast of having 100 houses expressing interest to invest here. The senior government authorities strongly held that if everything materialize on time vis-à-vis effective implementation of Rehabilitation and Resettlement Policy, allotment of land, renewal of lease, the state is likely to emerge as a Steel hub, producing 64 million tones of Indian government’s target of 110 million tonnes by 2020.

The transformation of the projects on ground is likely to benefit the people of state in term of revenue and employment. The deputy Chief Minister, Stephen Marandi, strongly believes that investment in the state will open new opportunities in the area of development. “The resettlement and rehabilitation policy of the state is one of the best that has been given shape to benefit the displaced and investors as well,” the Minister said. With the total investment by the mega investors crossing six lakh 40,000 crores majorly in steel, power and cement sectors, the state has the potential growth capacity that could stand parallel to any other state in the country.

On one hand, the UPA led Madhu Koda government has decided to identify non-serious players unwilling to establish their shops, whereas on the other, there are nearly three times the number of companies in steel and power sectors waiting in queue to sign MoUs with the government. “This trend speaks volume regarding the interest of the mega-investors. In fact all speculations regarding setting up of the steel plant by Arcelor-Mittal has been set aside with the company taking initiative to apply for land for opening its shop,” said the sources in the CMO.The private investors strongly held that the government needs to speed up its activities regarding statutory clearances and providing convenience to them.

Though land acquisition has been a major problem in the state but a major chunk of investors have managed to procure land from the land owners in lieu of the company’s benefits and monetary gains. “We’re seriously contemplating that the government will expedite the process of land acquisition, the major problem in this state,” stated the CEO of the company.The different steel, power and cement plants are likely to generate nearly 20 lakh employment directly and indirectly, thereby providing ample opportunities to the people of this state to overcome the problem of mass unemployment.

Officials claimed that over the next 10 years private investors are expected to pump in a whopping Rs.14, 00,000 crore into the steel sector in Jharkhand enriching the state coffers by around Rs.10,000-15000 crore by way of royalties, sales taxes and cess annually. Chotanagpur and Santhal Pargana had been deprived in large and medium industries when they were part of Bihar regime, causing high-level unemployment. If all the proposed steel investments materialize, it is expected to generate direct and indirect employment besides triggering the setting up of ancillary industrial units and a revival of ailing small scale industrial units.

There are 11 companies that are waiting in the queue for signing MoU with the state government. Reports suggested that companies like Gold Line Industries, Bhramaputra Metal, Staco Power and Steel, Sinosteel, Bhushan Steel, Anil Industries, Hi-Tech Iron and Steel, Pawanjay Steel, Vini Iron and Vinayak Industries are there in the list for signing MoUs while the companies like Ispat, Sarthak, Brahmi Impex, Ma Cahndi Durga Steel, Ranchi Ispat etc are awaiting the renewal of MoUs with the government.Some of the companies like Tata Steel, Jindal South West, Jindal Steel and Power, Adhunik, Abhijeet Infrastructure, SAIL etc have begun their ground work. While SAIL and Tata Steel have recently enhanced their plant capacities to 7 MT and 10 MT respectively in Bokaro and Jamshedpur, Abhijeet Infrastructure Corporate Ispat and Alloys has began the preliminary work at Seraikella-Kharsawan, the site for the new plant with the capacity of 2.8 MT per year. “We have decided to give the best to local people as per our company’s R&R and have also given in writing to the landowners that if there is any missing clause of the government that is not included in the company’s policy, it will be immediately incorporated for their benefit,” said the Chief Executive Officer, Abhijeet Infrastructure, Arun Gupta recently.

Corporate houses top brass asserted that the companies would not ignore the interest of anybody and will certainly take care of the locals in terms of employability and other benefits of those who have given their land for the commissioning of the project. “The industrial scenario in Jharkhand will take a new shape with the coming up of several modern townships, the plan of which were taken up by the government,” the CEO affirmed adding that the setting up new plants and capacity expansion by Steel giants during the last two years has created a sense of economic security among the people of Jharkhand. While the major companies like Mittal, JSW, JSPL, Essar and others have already been recommended for mines by state at Karampada and Ankua, the mining activities could not begun due to some technical reasons. However, the state government has set the ball rolling in terms of lease allotment for mines to the different companies.
Sanjeev Shekhar
Media Consultant/Journalist/PR