The Hindu Business Line : GIM projects remain pipedreams

EVEN two years after the Global Investor Meet (GIM) held here, no visible progress has been made on the implementation of the major projects announced at the GIM.

"Two years later, today, if one draws the balance sheet of the GIM exercise, it presents a grim picture of unfulfilled hopes and unattained targets," said some technocrats here.

One of the main reasons for the failure is that there were no viable manufacturing project proposals, said Dr M.P.S. Nair, former Chairman of Institutions of Engineers India (IEI), Kochi. The manufacturing sector holds the key in the industrial growth of underdeveloped economies on account of value addition and creation of employment.

"There was not a single viable project proposed at the GIM in the manufacturing sector. The projects worth Rs 31,000 crore included Super Express Highways, eco-tourism development, port development, a rubber park, private hydroelectric projects, sea sand mining, road development, industrial water supply, private water supply schemes, an air craft repair yard, truck terminals, gold shops, amusement parks etc," he said.

Normally, one expected that the GIM would address issues identified as bottlenecks in developing the State — the clearing of which will set things right for continued growth. Things were different at the GIM. The legion of experts presenting dozens of papers and industrialists signing scores of MOUs did not see this simple truth, alleged the head of a State PSU.

According to him, any prospective investor — domestic or foreign — will look at two things before making an investment decision. The first thing is whether he is able to generate the requisite profits and secondly, whether the assets will remain safe. The first part could be achieved by all-round reforms with the active involvement of the Government in business and certainly not as the so-called regulator and the latter by instilling a sense of confidence among prospective investors , he said.

Hence, it is necessary to demonstrate to the prospective investor that the Government is serious about industrial development by encouraging existing units to prosper through an effective policy support ; providing low-cost infrastructure and utilities; reducing inhibitory tax burden; and effectively interacting with the Central Government and its agencies to address issues confronting units, Mr Nair said.

Instead of improving the existing public sector enterprises, the Government appears to have opted to sell them off and dispose of their assets.

One of the major projects, the Express Highway, involving an investment of Rs 7,000 crore, seems to have been abandoned following a protest. The fate of the other proposed projects remains uncertain.

At the GIM, there was little talk on IT, as most people in the Government have started slowly realising that without a strong manufacturing and agricultural base, IT will not generate wealth in any economy. Kerala was an early entrant in IT, but could not capitalise on the sector unlike other Southern States. "Today, our IT turnover is as paltry as around Rs 250 crore," he said.

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