The Telegraph
Friday , December 14 , 2012
Since 1st March, 1999
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Recipe to hardsell state potential
Tech tool to keep tabs on investors

The industries department has decided to overhaul the Management Information System (MIS) to keep tabs on companies and investors who have obtained approval for their proposed projects from State Industry Promotion Board but have not yet set up the units.

Senior officers of the department said a proper and effective system, coupled with a database, would help the government keep tabs on the investors and interact with them from time to time and know their problems, if any.

“The department is developing an improved MIS to look into projects cleared by the SIPB but haven’t been on the ground till date. The aim is to create a perfect database with information about each investor, whose project has been approved. The department wants to find out whether they are at all serious towards setting up their establishments or not. It also wants to stay in touch with many companies all the time,” principal secretary (industries) Naveen Verma told The Telegraph.

Sources said the move was important, as the SIPB has approved 939 projects worth Rs 3 lakh crore since 2006.

“However, the fact is that real-time investments stand at Rs 600 crore to Rs 700 crore. It is evident that many of the approved projects have not yet come up. It is important for the state to know the reasons. The new MIS would take up some time but once done, it will be a complete system and the department can contact the investors and enquire about the reasons behind they not setting up their units. The government can help the investors in this way,” a department official said.

In November last year, the department had stated that the SIPB would not approve the setting up of industries in the state in “haste” without a thorough background check. Sources said many companies were suspected to be fictitious. To tackle the problem and to invite real investments into the state, the SIPB would give its approval to a company only after a minute study,” a senior officer in the department said.

“The database will be strong and both the parties can stay in touch all the time. The department is also contemplating to choose at least 10 of the biggest investors whose projects have not been set up till late,” said another department official.

When a proposal of setting up an industry comes to the department, it is first sent to the pollution control board and the Bihar State Power (Holding) Company Limited for clearance. Then, the interested investor makes his own detailed project report, which gives details about the land it proposes to acquire and the source of power the investor has decided to use for running the industry. Once the clearance comes through, the project goes to the department concerned for a check. For example, if the project is related to science and technology, it goes to the department concerned for a check before being sent to the industries department.

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