Investors shying-away from Punjab : Kanwar Sandhu Recently the Punjab Deputy CM, Sukhbir Singh Badal, visited Hyderabad and Chennai to woo businessmen and other investors to Punjab. He met with a top hospital magnate and also some agro-based business honchos. Among projects discussed were those relating to promotion of direct seeding of paddy and cotton harvesting machinery. Whether or not these investments fructify on a mega scale remains to be seen. My own sense is that these efforts will not meet with much success. Earlier in December last, Punjab Organised the Investment Summit in which Punjab signed Memorandum of Understanding (MOU) for investment to the tune of Rs 65,000 Crore. Except for the investment which was already there and some real estate projects, nothing much has been forthcoming. In fact, the Punjab CM, Sr Badal was more accurate. He had even then said that what we should be signing are not MOUs but commitments! This should set the State Government thinking on why investors are reluctant to invest in Punjab. While a detailed study will bring out the real reasons, my feeling is that unless Punjab resolves two or three issues, investors are unlikely to come to Punjab. One, the investment climate in the state does not seem right. The general perception is that there is too much corruption and red-tape in the bureaucracy and at the level of ministers. Two, the law and order situation and other essential parameters which repose investor confidence are found wanting. If instances of kidnapping, drug abuse and police highhandedness continue to pour in, no investor will want to risk his money and life. Three, there are disturbing reports of hundreds of existing industries in the state having closed down in the last few years because of taxation, power pangs and labour issues. If age-old industries are shutting shop, why would new ones come in? What also contributed were tax benefits extended to neighbouring hill states like Himachal Pradesh. It is for these very reasons that even the NRIs from Punjab who are doing very well are shying away from either coming back or investing in projects here. These are issues that the Punjab Deputy CM should ponder over. As a first step, the aim should be to ensure that the existing industry in Punjab is looked after so that it thrives.
Posted on: Mon, 22 Sep 2014 17:53:51 +0000
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