‘We have collected ₹6,000 cr as cess on mining’

Jharkhand recently made headlines by attracting investment commitment of ₹3 lakh crore at its first-ever two day Momentum Jharkhand Global Investors Summit. Jharkhand Chief Minister Raghubar Das managed to parade stalwarts of Indian industry including Tata Group ex-chairman, Ratan Tata, Aditya Birla Group, Chairman, Kumar Mangalam Birla and Essar Group, Chairman, Shashi Ruia among others. Laden with over 40 per cent of India’s mineral wealth and Gross State Domestic Product of 12.1 per cent, about one per cent higher than the national average, it is no wonder that investors had agreed to express their investment commitment by signing on the dotted line. In an interview to Business Line Sunil Kumar Barnwal, Secretary to Chief Minister, IT and Industries, who spearheaded the Summit, feels the real work will start from now. Excerpt:

How much of the committed investment would become a reality?

The Chief Minister is very particular to make the investment committed at the summit becomes a reality.

To start with, we have set up a committee to screen over 209 memorandum of understanding signed and see how much of them can become a reality within three years.

I myself held series of meeting in Kolkata, Mumbai and Bangalore with top officials of big business groups which have signed investment agreement and see which one of them can be implemented within 2-3 years.

We will be holding a similar meeting in Delhi before approaching global companies.

What are the major investments planned?

JSW Steel intends to set up 10 million tonne steel and cement plant.

It has acquired 1,000 acres and got coal allocation. The only itch is getting forest clearance for its iron ore mine. Right now most of the iron ore mine are close to Saranda forest area.

A final decision on the clearance is expected soon. My Own Eco Energy wants to set up production facility for making bio-diesel from various feed stocks including vegetable oils (such as oilseed, rapeseed and soya bean), animal fats or algae.

It wants to import a major portion of its input and tap export market from Jharkhand. Some of the investment we are chasing can be executed in 2-3 years and generate 1.54 lakh direct employment.

Do you think Jharkhand being land locked is constraining investments?

The Central government has identified to develop Sahebganj as multi-modal port as part of the Inland Waterway Development. L&T has been awarded the contract. This would open up gates for cost-effective business from Jharkhand with rest of India and particularly the Northeastern states. Export from the State will also be competitive once the port becomes operational.

Bangladesh will be just 12 km away, while Myanmar and SE Asian countries can also be tapped easily. With the National Highway connecting Allahabad and Haldia passing through Sahebganj, transportation cost in Jharkhand will come down by one-tenth. With whole lot of mineral reserves and good connectivity Jharkhand will become the growth engine of the country.

How much money the state has collected as mining cess?

We have accumulated ₹1,500 crore under District Mineral Foundation. The state has so far collected about ₹4,500 crore as royalty from mining. We have already drawn plans to use the money collected under the Foundation in 13 tribal populated backward districts where the mines are located. We have already prepared PPR (project progress report) with investment of ₹1,000 crore for laying pipes to supply clean drinking water to the most backward tribal areas. Work on this project is expected to start by June.

We will be using contribution from Swachh Bharat fund and the Foundation’s fund to ensure that Jharkhand becomes open defecation free by 2018-end.

How are you tackling naxalite problem?

Their activity has come down drastically after we made the surrender policy more attractive. Under the policy, when they surrender we take care of their entire family and provide government jobs in some cases. Naxal activities are there in Odisha, Andhra Pradesh and Telengana but people do not talk about them much.

Similarly, we want rebuild our image and erase talks on Naxals. I believe as such naxalisim in the state is now just a problem of perception than a problem in itself.

The Government is investing ₹54 crore to enhance mobile connectivity in tribal areas. BSNL is putting up 782 towers and will provide Net connectivity on 2 mbps line. Electricity supply in these regions has improved. Once we provide the basic infrastructure and mobile connectivity development will happen automatically.

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