Economy

Rajasthan attracts ₹3.3-lakh cr investment at the summit

Surabhi Jaipur | Updated on January 22, 2018




Big home-grown businesses such as Adani Group, Reliance and Aditya Birla group are among those who have made commitments for huge investments in Rajasthan.

“After today’s inaugural summit, we have inked 295 memoranda of understanding and received investment pledges worth ₹3.3 lakh crore that will generate 2.5 lakh jobs in the State,” said Vasundhara Raje, Rajasthan Chief Minister, at the Resurgent Rajasthan Partnership Summit.

Though Prime Minister Narendra Modi was unable to attend, the inaugural session of the two-day summit saw the presence of more than half a dozen Union Ministers, including Finance Minister Arun Jaitley.

Outlining plans for investment of ₹11,000 crore in the State over the next few years, Aditya Birla Group Chairman Kumar Mangalam Birla said the group, which has already invested ₹6,500 crore in the cement sector in the State, will pump in another ₹ 7,000 crore in two new grey cement plants and one white cement plant.

The company also plans to set up 500 MW capacity solar plant in the State with an investment of ₹3,000 crore, while the balance would be in investments in mobile telephony.

Adani’s commitment

Adani Group Chief Gautam Adani said his group would invest ₹10,000 crore over the next four years to expand the thermal power plant at Kawai along with setting up a solar power plant in partnership with the government.

Chemicals and Fertilisers Minister Ananth Kumar also pledged investments of ₹10,000 crore to Rajasthan, including setting up a National Institute of Pharmaceutical Education and Research (NIPER) at an investment of ₹500 crore in the district of Jhalawar over next two years and ₹100 crore additional investment in the Central Institute of Plastic Engineering and Technology (CIPET) in Jaipur.

“If the State provides 100 acres, we are ready to have plastic park with an investment of ₹1,200 crore…another ₹100 acre is provided first ever medical devices park can be set up,” he said.

Hero’s R&D centre

Calling for faster approvals by the State government for setting up business, Hero Motocorp Chairman Pawan Munjal said the group would set up a research and development centre in Jaipur and also sought land from the state government for solar energy plant. “A little more speed is required,” he stressed.

Reliance Group Chairman Anil Ambani said the company plans to invest ₹6,000 crore for solar power generation in partnership with the State government apart from building a project for senior citizen housing near Jaipur. Pointing to the huge tourism potential of the Rajasthan, Prabhu said the Railway Ministry would work with the State government to develop railway infrastructure and announced plans for redevelopment of 24 railway stations.

Singapore Home Affairs Minister K Shanmugam announced a direct flight from Singapore to Jaipur.

Noting that the State has the highest credit deposit ratio, Uday Kotak, MD and CEO, Kotak Mahindra Bank said his bank would try to double its loan book to ₹10,000 crore.

Industry heads, including Godrej Group Chairman Adi Godrej, Tata Group Chairman Cyrus Mistry, Mahindra Group Chairman Anand Mahindra and Vedanta Group Chairman Anil Agarwal, also attended the Summit.

This is the second investor summit by Rajasthan. The first was held way back in 2007 when it received investment proposals of ₹1.62 lakh crore for 357 projects. But just about a quarter of the investments amounting to about ₹40,000 crore actually materialised.

Key factors for investment

The Asian Development Bank  on Thursday  said investors have highlighted time-bound clearances for industrial projects, speedy land approvals, and efficient provision of linkage infrastructure as major incentives for setting up business in the State.

 Releasing the results of the Rajasthan Investment Climate Assessment survey, the ADB said 64 per cent of respondents said availability of proper land parcels was one of the key factors for their decision to invest in the State while 93 per cent of respondents ranked the State as average to good for power availability and 74 per cent of the respondents ranked quality of power as sufficient for production.

The survey, which was carried in partnership with the State government, also found that 80 per cent of respondents were satisfied with the overall business regime of the State.

(The writer is in Jaipur at the invitation of Rajasthan Government)

Published on November 19, 2015

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