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Now that the BJP has won the electoral mandate in Rajasthan, Madhya Pradesh and Chhattisgarh, it is time for the hard-sell.
The three mineral-rich States should strengthen the policy regime to attract new investors, industry watchers say.
European companies, for instance, are unaware of the investment opportunities that exist in Chhattisgarh, Madhya Pradesh and Rajasthan, said Sunil Prasad, Secretary General of Europe India Chamber of Commerce, a Brussels-based organisation that promotes trade between India and Europe.
“In Europe, Rajasthan is known for tourism but Chhattisgarh and Madhya Pradesh have very little visibility. Madhya Pradesh is largely known for the Bhopal Union Carbide disaster and Chhattisgarh for the Naxalite movement. These perceptions must change,” said Prasad.
Madhya Pradesh has the largest reserves of diamond and copper in India. Rajasthan produces 79 varieties of minerals, of which 58 are being commercially exploited. Chhattisgarh, being a mineral-rich State, contributes 20 per cent in the country’s total production of steel and cement. In India, however, much of the approvals for operating mines come from the Union Government.
The need of the hour is for the three States to have a conducive minerals policy, given their abundance in natural resources, added Prasad. In Naxal-hit States such as Chhattisgarh, iron ore mining is severely hampered. However, several companies buy iron ore from other States and process it in Chhattisgarh, which results in costs going up, said Pradeep Tandon, Executive Vice-President of Jindal Steel and Power.
The State Government should give incentives to companies so that they can sustain their operations, he added.
Usually State Governments offer incentives in the form of value added tax refunds and concessions in stamp duties.
Further, Chhattisgarh and Rajasthan have immense potential to develop geothermal energy, a prime focus area for international investors.
“The new governments must develop these resources. From the sites in Chhattisgarh about 500 MW of power can be generated,” said D. Chandrasekharam, Professor with Department of Earth Sciences, IIT-Bombay, and board member of ONGC.
Further, emerging geothermal technologies that enable tapping of heat sources from the granite strata, should be deployed for generating power in Rajasthan, he said.
P.K. Jain, Chief Financial Officer of Raipur-based Sarda Energy and Minerals, said the Chhattisgarh Government must on proper policy implementation for natural resources.
“Rather than control, the Government should stress on regulation of the policy, which will help business. It could start by notifying policy incentives in a time bound manner,” he said.
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