Ranchi, July 20: Enthused by the flow of huge investment proposals during the recent past, the Arjun Munda government has started ?ignoring? the smaller projects, apparently to facilitate smooth allotment of lands for the larger ones.

If mines and geology minister Madhu Koda is to be believed, for the last month or so the government has stopped forwarding smaller projects to Mecon to assess their viability. Now, the only projects that goes to Mecon are those involving investments to the tune of at least Rs 200 crore.

Sources in the industry department said the state has so far received investment proposals worth over Rs 1,00,000 crore. But, groundwork has begun for very few proposals because of the problems faced during land acquisitions.

In fact, not a single industry has been provided lands by the government. Only those investors, who succeeded in acquiring lands by themselves, have managed to set up their units.

Though the state cabinet recently resolved to set up a land development bank, it is difficult to say when the proposed bank would become functional.

Chief minister Arjun Munda?s regular meetings, with the investors, and review meetings, with the secretaries of various departments, too seem to have failed to resolve the crisis.

Koda pointed out another reason for the state?s priority towards the mega-projects. ?For the smaller ones, the investors can manage by acquiring lands themselves. But for the larger ones, acquisitions by the government become necessary. Transfer of forest land is another difficult problem. We have taken up this issue with the Centre as well,? he added.

Former chief minister and BJP national vice-president Babulal Marandi also had recently said the state should build the necessary infrastructure before inviting the bigger players.

He cited the examples of MoUs signed during his regime and added that despite completing the necessary formalities, the investors have not been able to secure lands.

Munda, however, denied allegations that his government was neglecting small and medium scale industries.

The deputy commissioners have been directed to expedite the acquisition process, he said and added he favoured amendment in laws for the transfer of forest land.

?Several mega-projects, especially in the irrigation sector, are blocked by the dispute over the transfer of forest land. The law demands that equivalent land should be given for afforestation if forest land are acquired for industrial purposes and it is practically impossible to trace vacant lands of equal sizes. That is why I proposed at the National Development Council meeting that a one-time relaxation should be given for all such projects where substantial investments have already been made,? he said.

Incidentally, the mineral reserves, including iron-ore, too are located in to the forest areas. How the new investors will manage clearances by the Union forest and environment ministry remains to be seen.