Will investment boom amidst
economic gloom?
Rakesh Lohumi from Shimla
The discouraging
investment climate within
the country and the global
headwinds indicating a
s l o w d o w n
notwithstanding, the
Himachal government is organising a
“Global Investors' Meet 2019” at
Dharamshala on November 7and 8 to
showcase the state as a preferred
destinations for entrepreneurs in
India.
It is a well-conceived event and a
good initiative to boost economic
growth in the hill state but it may not
yield the desired results in the current
dismal economic scenario when
industries are being forced to shut
down production due to lack of
demand. Even otherwise, the target of
attracting an investment of Rs 85,000
crore through the event is too
ambitious. The investment climate is
not conducive for attracting
entrepreneurs and the government
seems to be aware of the situation. It
has made it a prestige issue and it has
been working overtime for the past
almost one year to make its flagship
event a success.
Chief Minister Jairam Thakur, who
has been spearheading the
government’s campaign, held road
shows not only within the country but
also abroad to invite entrepreneurs
for the meet. Besides Hyderabad,
Delhi, Mumbai, Bangalore,
Ahamdabadand Chandigarh he also
led roadshows in United Arab
Emirates, Germany and Netherland.It
is for the first time that an event is
being organised to attract investment
on such a grand scale.
Sparing no efforts for creating
positive vibes for the big event, the
government organised a Mini
Conclave of Global Investor’s at
Shimla last month. The Chief Minster
claimed that the conclave evoked a
good response from the investors
mainly and as many as 93 MoU's were
signed for projects involving an
investment worth Rs. 4775 crorein
Tourism, Housing, Education, Food
Processing, Health and IT sectors.He
also claimed that so far MoU’s for
projects worth Rs 45,000 crore had
been signed.
However,the opposition is not
impressed and termed the entire
exercise as a ploy to divert attention
from the lacklustre performance of
the government and indifferent
governance over the past 21 months
of BJP rule.
Mukesh Agnihotri
Congress Legislative Party Leader
Mukesh Agnihotri said any effort of
the government to attract investment
to boost development is good for the
state but Global Investor Meet 2019
appears to be an “extravagant
exercise” that is not likely to
yield any concrete results. It
could be best described as a
“Global MoU Signing Festival”
rather than a serious
investors’ meet to attract
investment. “Signing MoUs
can help create media
headlines but it does not
actually bring investment as
has been the experience in
other states where not even
25 per cent of the MoUs have
been implemented during
period of economic boom”,
he remarked taking a jibe a
Chief Minister Jairam Thakur.
He expressed
apprehension that it might
well turn out to be another
edition of “Himachal on Sale”
the way government was
easing all norms in a vague
manner and without any concern for
environment and bulldozing rights of
people.The entire focus was on
publicity and no concern about the
rules, regulations, environment and
rights of the people which raised
serious doubts about the investor
meet. He reminded the government
of the aborted Himalayan Ski Village
Project for which could not be implemented due to opposition from
local people. It seems that it had not
learnt any lesson and waived the
provisions for NoC from panchayats
and mandatory permissions from TCP
Department which effectively meant
that there would be no public
consultations. A free for all like
situation where any influential person
could set up any project anywhere,
making a mockery of mandatory
provisions of law.
The Congress has even demanded
a “white paper” on the incentives,
concessions and relaxations
announced for various sectors and
specific industries before the
investors meet. The by-election to the
Dharamsala Vidhan Sabha seat has
lent a political overtones to the Global
Investor Meet as it is being held in
Dharsmshala. The senior leaders of
both the BJP and the Congress are
firing verbal salvos on each other to
gain electoral mileage.
The political fireworks apart,
environment is a big issue in the
ecological fragile hills state and the
National Green Tribunal (NGT) and the
State High Court have passed several
orders castigating the government for
its failure to check illegal construction,
deforestation and pollution of rivers
and other water sources due to
unscientific disposal of waste. The
hills, particularly area like Shimla,
Manalai, Dharamshala and Kasauli, have been burdened beyond their
carrying capacity due to haphazard
and excessive construction activity.
The NGT had imposed restriction on
new constructions in Shimla and
surrounding areas and capped the
number of vehicles on Rohtang pass
as these areas have been burdened
beyond their carrying capacity. In
such a situation relaxing land and
building laws could lead to haphazard
industrialisation in the state already
under strain due to unsustainable
urbanisation.
The government has engaged
professional agencies, including
Confederation of Indian Industry as
National Partner, Ernst and Young LLP
as Knowledge Partner, Square
Communication Ltd. as Media Partner
and Integrated Conference and Event
Management (ICE) as Event
Partner.These agencies are taking care of various components of the
meet right from planning and
designing to implementation.As many
as nine committees have been set up
for organising the meet.
The government has
engaged professional
agencies. These
agencies are taking care
of various components
of the meet.
Various incentives have been
announce and some regulations have
been eased to facilitate prompt
clearances of projects and land bank
has been created to ensure that
entrepreneurs do not face hurdles in
locating and acquiring land. A new
industrial policy has been announced, under which “Anchor Enterprise”,
industrial unit with the Fixed Capital
Investment of over Rs. 200 crore and
employing more than 200 Bonafide
Himachalis on regular basis, will be
eligible for special concessions.
The event will showcase the
potential of Himachal Pradesh for
investment in various sectors, such as
Agri-Business, Food Processing & Post
Harvest Technology: Tourism,
Hospitality & Civil Aviation; Wellness,
Healthcare and Ayush (Indian system
of Medicines); Hydro & Renewable
Energy; Manufacturing &
Pharmaceuticals; Real Estate, Urban
Development, ITES & Electronics;
Education and Skill Development.
The objective is to boost economic
growth, generate employment
opportunities, encourage
entrepreneurship and promote 'Make
in Himachal'.