ANIL PANDE says that the Madhya Pradesh CM is trying to win on the development plank. But his critics say that the strategy, if not inclusive, can prove to be worthless
Last year, in October, when corporate honchos were
inking deals at the Indore Global Investors Summit, a substantial number of activists were protesting near the bust of Mahatma Gandhi at Regal Crossing, not far away from the investment summit. Among others, they were joined by activists from Narmada Bachao Andolan, and displaced farmers and tribals, who lost their land due to development projects in Neemach and Riwa districts. Needless to say, their feeble voices had no takers. The voices of the investors were amplified by the promised investments of Rs.120,000 crore.
The reason: in the last couple of years, development and good governance have emerged as vocal election planks. The days of ‘social engineering’ and ‘booth management’ have passed. Now, even people voting along caste lines expect a certain level of governance from their elected representatives. And, for a change, “governance” is determined on the basis of overall development. Poll pundits predict that as more youth participate in the electoral process, the development plank will continue to take a frontal position. At present, more than half of India’s population is constituted by people under-25 years.
In fact, development was one of the reasons why the BJP returned to power in Madhya Pradesh. Poor infrastructure did Digvijay Singh-led Congress government in. But now, the tables have turned. The BJP has completed four years in power. What’s more, development will once again be the frontal rhetoric in the forthcoming polls. Naturally, the BJP is worried. It wants to present a good report card to the voters. It wants development and the only way it can be done, says the BJP, is by inviting foreign capital.
That is why CM Shivraj Singh Chauhan is busy with his single agenda program. He has been successful in signing MoUs for projects worth more than Rs.225,000 crore in 2007 alone. Noted economist Alok Puranik finds foreign capital as the only way to initiate developmental projects in the state. Nevertheless, he wants the development to be inclusive. He predicts: “State governments focusing on investments in agriculture and manufacturing sectors have strong chances of returning back to power.”
To boost foreign investment, the CM organised a 2-day summit for global investors last year, where 102 MOUs were signed. Under these, foreign capital will flow in areas like power, IT, , food processing, education and health. As many as 550 investors from various countries participated in the summit. Although skeptics have expressed reservation on these proposed projects, works on 38 of them has begun.
Experts believe that if all these projects are implemented, Madhya Pradesh will break into the league of 5 most developed states in the next five years. Already, the state is pegged to become the ‘power capital’. Similarly, there are lofty plans to make the state an educational hub. New investments will boost per capita income in real terms and GDP. In fact, experts believe that the state’s revenue receipts will increase by 250%.
The sector that will benefit the most is power generation. Reliance Energy has inked a deal of Rs.50,000 crore. Jayant Mallaiya, Minister for Industries, believes that power generation is the key to development. He explains, “Our primary aim is to make Madhya Pradesh self-dependent in power. In fact, we believe that in the coming years, we will have surplus power with us. It will also boost the state’s economic development.”
Nevertheless, there is another face of development. Compared to power and food processing sectors, investments are meagre in agriculture. Most of the benefits from investments are likely to be wrested by the upper classes. Sunil, a noted social activist, says: “Foreign Capital will lead to destruction and not construction. Fertile land is being sold to industrialists at throwaway prices.” But CM Chauhan thinks otherwise. He assures that the benefits will trickle down to all classes. He adds, “The only way to eradicate poverty and bring prosperity is through investments. The agriculture sector is heavily burdened and it will be illogical to increase it any further. We need revenues. We are for balanced development. We will give equal priority to agriculture and manufacturing.”
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
Last year, in October, when corporate honchos were
inking deals at the Indore Global Investors Summit, a substantial number of activists were protesting near the bust of Mahatma Gandhi at Regal Crossing, not far away from the investment summit. Among others, they were joined by activists from Narmada Bachao Andolan, and displaced farmers and tribals, who lost their land due to development projects in Neemach and Riwa districts. Needless to say, their feeble voices had no takers. The voices of the investors were amplified by the promised investments of Rs.120,000 crore.The reason: in the last couple of years, development and good governance have emerged as vocal election planks. The days of ‘social engineering’ and ‘booth management’ have passed. Now, even people voting along caste lines expect a certain level of governance from their elected representatives. And, for a change, “governance” is determined on the basis of overall development. Poll pundits predict that as more youth participate in the electoral process, the development plank will continue to take a frontal position. At present, more than half of India’s population is constituted by people under-25 years.
In fact, development was one of the reasons why the BJP returned to power in Madhya Pradesh. Poor infrastructure did Digvijay Singh-led Congress government in. But now, the tables have turned. The BJP has completed four years in power. What’s more, development will once again be the frontal rhetoric in the forthcoming polls. Naturally, the BJP is worried. It wants to present a good report card to the voters. It wants development and the only way it can be done, says the BJP, is by inviting foreign capital.
That is why CM Shivraj Singh Chauhan is busy with his single agenda program. He has been successful in signing MoUs for projects worth more than Rs.225,000 crore in 2007 alone. Noted economist Alok Puranik finds foreign capital as the only way to initiate developmental projects in the state. Nevertheless, he wants the development to be inclusive. He predicts: “State governments focusing on investments in agriculture and manufacturing sectors have strong chances of returning back to power.”
To boost foreign investment, the CM organised a 2-day summit for global investors last year, where 102 MOUs were signed. Under these, foreign capital will flow in areas like power, IT, , food processing, education and health. As many as 550 investors from various countries participated in the summit. Although skeptics have expressed reservation on these proposed projects, works on 38 of them has begun.
Experts believe that if all these projects are implemented, Madhya Pradesh will break into the league of 5 most developed states in the next five years. Already, the state is pegged to become the ‘power capital’. Similarly, there are lofty plans to make the state an educational hub. New investments will boost per capita income in real terms and GDP. In fact, experts believe that the state’s revenue receipts will increase by 250%.
The sector that will benefit the most is power generation. Reliance Energy has inked a deal of Rs.50,000 crore. Jayant Mallaiya, Minister for Industries, believes that power generation is the key to development. He explains, “Our primary aim is to make Madhya Pradesh self-dependent in power. In fact, we believe that in the coming years, we will have surplus power with us. It will also boost the state’s economic development.”
Nevertheless, there is another face of development. Compared to power and food processing sectors, investments are meagre in agriculture. Most of the benefits from investments are likely to be wrested by the upper classes. Sunil, a noted social activist, says: “Foreign Capital will lead to destruction and not construction. Fertile land is being sold to industrialists at throwaway prices.” But CM Chauhan thinks otherwise. He assures that the benefits will trickle down to all classes. He adds, “The only way to eradicate poverty and bring prosperity is through investments. The agriculture sector is heavily burdened and it will be illogical to increase it any further. We need revenues. We are for balanced development. We will give equal priority to agriculture and manufacturing.”
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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