The Mumbai-based public relations agency, Corporate Voice Shandwick, has also backed out from the holding roadshows, starting September 18 in the US, Europe and south Asian countries.

Mantralaya sources on Wednesday confirmed the two agencies' withdrawal. "It is naturally bad news for us," the sources said, adding that Chemtech and the US-based GIC Group will, however, continue to be co-sponsors of the event.

The state government had managed to rope in CII to help organise the convention. The organisation was actively associated with the three-day Advantage Maharashtra held in February 1997, which offered about 55 projects worth Rs 18,000 crore to private investors.

In the case of the agro convention, however, serious differences cropped up between the government and CII, especially on the issue of the venue of the inaugural session, timing of roadshows and organisation of technical sessions. The other reason being "clash of interests" as a similar convention is being organised by CII at Chandigarh this December.

According to CII, Shanmukhanand hall in north-central Mumbai would be an inconvenient location for investors and had suggested a venue in south Mumbai. It felt that the government should have prepared a comprehensive list of projects well in advance in agri-business instead of only identifying key areas for investment. In all, 45 projects worth Rs 5,000 crore will be offered to investors during the convention.

CII had also suggested that the technical sessions be divided properly for the benefit of investors. CII had also expressed its inability to organise roadshows and conferences abroad at such a short notice.

The government had asked Corporate Voice Shandwick to organise the road shows abroad beginning September 18. Deputy chief minister Gopinath Munde will lead one team comprising cooperation minister Jaiprakash Mundada and minister of state for agriculture Harshvardhan Patil from September 18 in the US and the agriculture minister Radhkrishna Vikhe-Patil will head another team in European countries from September 20.

The government was insisting upon concessions to be offered by the PR agency in organising the road shows as "they were for the social sector." The agency had expressed its desire to go out of the way to help the government but later expressed its inability to organise the road shows as it felt that at least three weeks were required for printing literature and organising conferences abroad.