Bihar, the parent state out of which Jharkhand was carved out in November 2000, is still grappling with an industrial policy conducive for investments when its younger sibling is verged for a perch on the global map.
A two-day investors' summit is going to be held in Ranchi, the capital of Jharkhand, on February 16 and 17. Countries like Japan, Czech Republic, Mongolia and Tunisia have partnered with this mineral-rich state for the event.
Over the last year, Jharkhand chief minister Raghubar Das, a one-time Tata Steel worker, has been touring the country, holding roadshows in Delhi, Mumbai, Bangalore, Hyderabad and Calcutta to unveil the new policies. Administrative flab was cut by pruning the number of government departments to 29 from 43 and a host of policies were framed in sectors ranging from power, health, education, textiles, IT and start-ups with the idea to attract private participation in tune with BJP's avowed mission of ushering in development. He went abroad too, tapping the US, China, Taiwan and Singapore to lay the groundwork.
The result is, as Jharkhand chief secretary Rajbala Verma proudly announced the other day, the state has already received investment proposals to the tune of Rs 322,000 crore. "Given the fact that Jharkhand has about 40 per cent of the mineral resources of the country, one should not be surprised if many investment proposals come during the event," a well known economist from Bihar told The Telegraph on Wednesday.
Bihar has witnessed just a little over Rs 8,000 crore of investments in the past one decade. The fact that a part of this small investment may witness a flight from the state makes things gloomier.
Take the case of the Molson Coors Cobra beer plant at Bihta in Patna district which was the result of a promise made by Lord Karan Bilimoria during an investment summit held in Patna in 2012. But uncertainty is staring at Bilimoria's investment (Rs 39 crore) in the wake of the January 17 decision of the Bihar government that licences of breweries, distilleries, bottling plans and units manufacturing alcohol used for making liquor, would not be renewed from April 1 this year. The decision was taken to strengthen prohibition in the state.
Bihar industries minister Jai Kumar Singh tried to downplay the issue. "My department is liasing with all such investors so they could use their existing units for making non-alcoholic products," he said.
Industrialist and chairman of the Bihar unit of PHD Chamber of Commerce and Industries Satyajit Singh differed. "The decision would affect investment of about Rs 1,000 crore already made in Bihar. It is easier said than done to ask someone to change one's core strength just because a policy has been changed by the government of the day," he said.
There are 21 liquor producing and bottling units in Bihar, including three breweries and a dozen IMFL manufacturing units.
Retired IAS officer Afzal Amanullah, who had served as principal secretary, industries, for a few months in 2012, said that while working in the department he realised that there was more emphasis on lip-service than actually simplifying things to make Bihar an investor friendly state.
"A very big industrialist of the country had once told me that he was made to wait for about 25 minutes for a simple meeting with officials and as an investor he didn't feel welcome in the state," said Amanullah.
Industrialist K.P.S. Keshari observed that lack of "political will" was the main cause for the failure of the state to attract major investment.
