Patna: Chief minister Nitish Kumar's latest trip to Japan comes in a line of visits to seek potential investors but trade bodies advise caution before jumping for joy.
All of Nitish's past efforts and also of former chief minister Lalu Prasad to woo foreign investors have come a cropper with not a single paisa coming to Bihar. The Japanese, for instance, are "extra cautious" when it comes to investing.
"They are particular about the most minute details of the work and sanction further funds only when they are satisfied," said an executive engineer associated with ongoing construction of the Bodhgaya-Patna four-lane road financed by Japan International Co-operation Agency.
Nitish has been to China and Mauritius before Japan. The previous two visits had not resulted in any investment in spite of talks on "sugar technology" of Mauritius being brought to Bihar. Industrialist O.P. Sah, however, said: "The trips to China and Mauritius were not investment trips. The trip to Japan was.
"During investment trips one showcases their core strengths. Our core strengths are in tourism, food processing and infrastructure. The chief minister showcased our core strength during his Japan visit and the core investors were genuinely interested," said Sah, who has been part of all of Nitish's delegations abroad.
Bihar Industries Association chief KPS Keshri appeared cautious about being optimistic about the results from the Japan trip. He has asked for continuous dialogue and introduction of Japanese language in skill-development courses.
"It's not as if the Japanese are waiting for you to invest in Bihar. One has to go beyond what other states have to offer. The problem of these trips to woo investment is that there is no follow-up. Efforts and discussions have to be persistent," said another investor, pointing out that Nitish's delegation this time comprised "too many officials and too few industrialists".
"While officials and politicians go on tax-payers' money, industrialists have to pay from their own pockets. That Bihar has very few successful industrialists to be showcased is another drawback. Investment from outside comes only after industrialists of the state are shown to be prospering," said a local industrialist.
Investments in Lalu's time were dismal.
After his spectacular victory in 1995, Lalu went to Singapore, London and US and came with 35 MoUs. After that he followed it up with holding a NRIs meet in Patna. He claimed investment proposals of Rs 35,000 crore had come but not a single MoU was taken to its logical conclusion and not a single proposal from the NRI meet reached the ground.
During the 15 years of the Lalu-Rabri regime, total investment in Bihar was less than Rs 2,500 crore.
Now, local industrialists say, the situation has improved. "Investment has started to trickle in. Till November 2017 there were proposals of over Rs 5,000 crore. Besides, local industrialists stopped moving out and started investing in Bihar. Nearly all the private sugar mills have expanded. But till now investment proposals are small - from Rs 20 crore to Rs 50 crore. The decision to close down liquor manufacturing units has not helped," an industrialist said.
