Thursday, August 09, 2012

Orissa needs to ensure implementation of the promises

A lot has been said and done, but the reality is far from what was promised. To continue on growth track Orissa needs to ensure implementation of the promises, says Deepak Ranjan Patra

Apart from the red-tapism, companies coming in to set up industries are also suffering from many other problems like water crisis, power shortage, and above all other infrastructural problems like roads and transportation. Water has already become a major issue in western Orissa after the government agreed to provide water to the industries from the Hirakud dam. It led to an agitation from the farmers of the area, under the banner of Western Orissa farmers association, demanding of all MoUs that are signed after 2003 to be cancelled. “We have asked the government to cancel all MoUs signed after 2003 that allows dam water for industrial purposes. Dam water is meant for power generation and irrigation and not for the industrial use”, says Ashok Pradhan, Co-convener of the Western Orissa farmers association’s coordination committee. Like the land issue, the water is also yet to see some decisive solution from the government.

There is no doubt that the state government under leadership of Naveen Patnaik understands the problem. Recently the CM in a public appearance accepted that the state still needs to invest heavily on roads, railways, electricity, drinking water supply and irrigation adding that appropriate policy initiatives need to be put in place for providing infrastructure support to unleash economic development.

However, the biggest question here is, why are these companies pouring into a state even after knowing that it has enormous problems that are hard nuts to crack? The answer is simple; for the unexploited mineral resources of the state. So those cases, where the companies find a possibility to move away with minerals without actually setting up their plant, they happily grab the opportunity.

Shivananda Ray, Vice President, State Congress Committee argues, “Only production units should get mines lease but here mines are also given to non-production units. It offers no value addition for the state.” He further adds, “If the state is showing such industrial growth it should be reflected as higher economic growth and increased per capita. But the state is still among the poorest in the country.”

Even the government would certainly find it difficult to rubbish this argument. It has already happened in the past that even after getting permissions, companies had shown absolutely zero interest in implementing there projects. Understanding the gravity of the situation, in 2006 the same government had issued ‘show cause notices’ to almost half a dozen companies when it found that the companies had shown no interest in setting up their projects. Even last month the government has again issued similar notices to a few more. But the question remains, will cancellation of such projects solve the purpose?

Today when the state has started to catch up with the country’s growth rate; instead of number of MoUs signed what is more important is how many of them see the day light and end up adding to the state’s economy. So far the rate of conversion at 40% (assuming those 29 projects to be fully operational) is definitely not acceptable. Though the government understands the need for infrastructure development, it’s yet to go big at it and the same is applicable for issues like land acquisition and public oppositions. Moreover, the complaints, if true, about companies trying to move out with minerals and doing no work, can be taken care of by adding a few more clauses to the MoUs.

But unless the ones who intend to work are provided with a friendly environment, it will always remain tough to make these companies add value to the state. For a sustainable long-term growth and inclusion of the people at the lower economic strata in the growth process a state like Orissa, which is currently transitioning from primary sector driven to secondary sector driven, certainly needs to convert these MoUs into industries. Because we know, wishes are no horses.


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