The year : 1988. A galaxy of industrialists met at Jamshedpur and pledged to invest Rs 25,000 crore in beleaguered Bihar. Gloated the chief minister, Bhagwat Jha Azad, “ the state has reached the take-off stage in industrialisation”. The then IDC of Bihar, high-profile bureaucrat N.K. Singh, who is now in the Planning Commission, was the prime mover of the conclave and endorsed the optimism of the chief minister.
The year : 2003. Newspapers in Jharkhand routinely carry promises of an industrial revival; thousands of crores of rupees coming in from abroad and private investors evincing great interest in the region. Will history repeat itself ?
Even in 1988 it was clear to everyone else, barring politicians and government officials, that the state was slowly turning into a graveyard of industries.
The hype did not help Bhagwat Jha Azad, now better known as the father of former cricketer Kirti Azad, survive in the hot seat. Fifteen years down the line, it is unlikely to help the ruling NDA alliance in Jharkhand in getting a second term.
Industries in Jharkhand, with a few exception like the Tatas, were mostly driven by the state sector.
This was partly because mineral-based industries required heavy investment and also because social infrastructure like schools and hospitals had to be set up first in order to attract skilled workers and executives from outside. Ironically, such massive investment, resultant time-lag and interest burden unleashed a vicious circle from which the large industries were unable to come out.
But even smaller units, like Nalanda Ceramics at Getalsud or HMT’s Subarnarekha Watch factory near Ranchi closed down, ostensibly for no rhyme or reason. Even more strangely, the region witnessed very little investment and value addition in areas like horticulture and forestry. Even edible oil came from outside and minor forest produce like tamarind and sal seeds went out. There was a solitary matchstick manufacturing unit at Goilkera near Chaibasa and experts periodically held out the promise of the region exporting roses, other varieties of flowers, vegetable, pulses and even citrus fruits.
The situation does not appear to have undergone any substantial change. Industrial employment, it would appear, has gone down sharply with downsizing by large-scale industries and small industries going out of business. Industrial estates like the ones at Tupudana, Kokar and Patratu today seem to have more residential houses than industrial units.
But the dream merchants are still active , selling dreams of an industrial revival. Outrageous claims like luring foreign investors and turning Jharkhand into software hub are being made and publicised without much scrutiny. A realistic road map for an industrial resurgence is still awaited, almost three years after the new state came into being.
