He started a Rs 50 lakh steel re-rolling mill in 1967 after obtaining a degree in industrial management from London. Business ran in his blood and success followed in no time. But after a series of bitter experiences, Gopal Prasad Sahu advocates against setting up industry in Jharkhand, at least not before the government provides a conducive atmosphere for industrialists.

Not surprisingly, Sahu has no plans to revive his closed factory or invest in any new venture in the near future.

A son of the soil whose family is in business for the last 150 years, the 60-year-old trader-turned-hotelier had to close down his factory in the late eighties due to poor power supply. That apart, dismal road condition, a deteriorating law and order situation, negative attitude of the government all contributed to an atmosphere which was not suitable for industrial growth.

?Instead of providing facilities to investors, the government officials enjoy harassing them,? rues Sahu, who was perhaps the most successful businessman of his time. He had made a profit of Rs 8-10 lakh in the very first year that Sahu-Gupta Industries started operations.

This wise old business suggests that young entrepreneurs should invest in small ventures instead of going for big business establishments. Sahu feels that the the region was far more conducive for industrial growth in the sixties than it is now. ?The situation has worsened instead of improving after the formation of Jharkhand,? said Sahu.

The younger brother of liquor baron and late Congress MP Shiv Prasad Sahu, Sahu comes from an established business family of Lohardagga. He is also the treasurer of Jharkhand Pradesh Congress Committee, a post which was earlier held by his younger brother Dheeraj Sahu. He also holds the record for being president of Ranchi Club for nine terms.

Sahu?s family also owns Hotel Arya, the state?s biggest cold storage, a Maruti showroom and has interests in the liquor business.

Considered close to Indira Gandhi, the Sahus have always been rich, but Gopal had to struggle to establish his re-rolling mill. ?Even if one belongs to a financially good family and has the needed resources, any new business needs a lot of hard work. Money alone cannot do everything.You need land, a licence and there are so many formalities to be fulfiled. I had to struggle a lot while setting up my rolling mill in Mahilong, Namkom,? Sahu said.

The venture entailed a lot of travelling to procure raw material and for marketing. The factory was a mega success in the first few years.

?We made huge profits that was invested in its further expansion. From one mill to another, from manual to automatic, from a small unit to a bigger area, we invested everything we earned,? he said.

?But the situation started deteriorating after many factories started coming up in the area and the power plants became overloaded. Re-rolling mills need uninterrupted power supply as otherwise it runs into losses. There were power cuts for as many as 15-18 times a day without any prior information. When we started having losses to the tune of Rs 50,000 to Rs 60,000 a day, we decided to down shutters,? Sahu said.

Sahu said he applied to the government several times to get 10 hours of uninterrupted power, but in vain.

He recalls how a factory, owned by an influential industrialist, got regular electricity while the other units in the area suffered. ?After a long battle the electricity department had earmarked 5 MW from the Rampur feeder for the industrial area. But an influential businessman in connivance with some electricity board officials got regular power supply, while we suffered.?

?Resentment brew in the industrialists of the area and we unitedly fought against the partiality. I was made the president of the union and we fought a long battle to ensure justice. But, the power situation deteriorated with each passing day and when we could no longer bear the huge losses we decided to close down,? said Sahu.

The economics honours graduate from Ranchi College says industrialists are migrating to other places due to poor facilities in the state even though Jharkhand has cheap labour and rich mineral reserves.

Almost 75 per cent of industries have closed down, and the remaining 25 per cent are on the verge of closure.

?Unavailability of land is yet another problem in setting up industries in the state. Eighty per cent of the land belongs to tribals, which cannot be sold or purchased. I think the government should change it stand on this. It has to allow sale of tribal land for industrial growth. Unless existing industries flourish and new units come to Jharkhand, the state cannot prosper despite having great potential,? he said.

In 1980, Sahu launched Arya Travels and set up a cold storage in Pandra the next year. He also started taking renewed interest the functioning of Hotel Arya, which was established in 1952.

He started renovating the hotel, which was completed in 2001. Sahu believes even the hotel industry does not have a great scope in Ranchi as there is practically no tourism here.

?There is scope only for small hotels. Though being a four star hotel, most of Arya?s clients come here for government work. During government holidays, business is lean,? he said.

Sahu says Ranchi used to be a major tourist centre during his younger days. ?Now no one visits the capital due to fear of extremist attack and poor law and order situation,? he added.

The Tatas conducted a survey to establish a five star hotel in the capital, but found that it was not a viable business proposition. ?Unless tourism flourishes and new industries come up, even the hotel industry has no scope in Ranchi.The capital has scope only for small shops and trades,? he laments.

Anupam Sheshank