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Friday, November 13, 1998

States try to outsmart each other in attracting NRI funds 

Our Economic Bureau  
New Delhi, Nov 12: State governments fell over each other at the third plenary session at the global Indian entrepreneurs conference in an effort to woo the assembled NRIs to invest in their states.

However, minutes into the session, the state representatives were momentarily nonplussed when a delegate got up to ask where in India can he invest $ 20 million in a casino. Session chairman, T R Prasad, industry secretary came to the rescue of the panel by suggesting that time is required to think of the challenge. Single window clearances, technology parks, trained manpower, sufficient power supply were the oft-bandied lollipops by the states' spokespersons. Investments were sought by the various state governments in infrastructure -- power, roads and ports -- agro processing, tourism and software development. Keen to get a sales edge, the Haryana government representative offered to take the delegates to a conducted tour to the state's industrial parks. One of the advantages offered by the Harayana officerwas that his state is close to the capital.

Not to be outdone in this game of one-upmanship the Uttar Pradesh chief secretary at the fag end of the session extended an invitation to the delegates for a state government sponsored visit to the Taj Mahal. The chief secretary had spoken first amongst the 16 representatives and was keen to leave a lasting impact after so many sales pitches had been made.

The Bihar spokesman bemoaned the poor press publicity that his state has received over the years which has tarnished its image. He said that the investment environment was not half as bad in Bihar as it is made out to be.Whenever the delegates got a chance to intervene after a state presentation, the intervention in most cases was an expression of frustration at the tawdry state of affairs at the state capitals. More than one delegates expressed their impatience with the convoluted nature of the bureaucracy.

Delegates expressed concern about investing in Maharashtra and Jammu and Kashmir on account of thepoor law and order situation in Mumbai and the northern state. The Maharashtra representative assured the gathering that the extortion problem in Mumbai will be under control in two weeks' time. And the representative from Jammu and Kashmir said that the problem of law and order existed only in the border region where there were skirmishes otherwise in the rest of the state ``it was business as usual.'' The J&K representative assured the gathering that there is no problem in providing land to industries. He said the State Industrial Development Corporation will acquire the land and give it to industry on a 90-year lease.

Keen to cut through the clutter, the Gujarat spokesperson said that what is most important in a state are its people and `Gujarat has the friendliest people.' The Gujaratis have a sharp business focus and are keen investors, he said.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.

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