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Haryana fails to catch fancy of foreign investors

July 13, 2018 05:19 AM

courstey the TRIBUNE JULY 13

Haryana fails to catch fancy of foreign investors
Pradeep Sharma

Tribune News Service

Chandigarh, July 12

Notwithstanding Haryana’s distinction in the recent ease of doing business ranking and Chief Minister Manohar Lal Khattar’s five overseas visits to woo foreign investors of nine countries, the state could attract less than Rs 5,000 crore in foreign direct investment (FDI) in almost four years of the BJP rule.
The state has seen actual investments of Rs 80,000 crore that included capital inflow from both domestic as well as overseas sources in the state during the 45-month rule of the present government, Haryana Industries and Commerce Minister Vipul Goel said.
The actual investments are far short of the Khattar government’s estimates. After the “Happening Haryana Global Investors Summit” in March 2016, the government had announced signing 357 MoUs worth Rs 5,84,000 crore with various investors. It had claimed that the projects had the potential to generate five lakh additional jobs.
Goel said largescale FDI as a result of these MoUs was in the pipeline and would soon be in the implementation stage. “The Industries Department is constantly in touch with the potential foreign investors for facilitating them to invest in Haryana as the state offers ideal atmosphere for investment,” he added.
According to official data, the state could attract only Rs 4,878 crore in the tenure of Chief Minister Khattar despite his personal visit to the USA, Canada, Japan, China, Singapore, Hong Kong, Dubai, Israel and the UK to attract FDI. Officials had estimated that his foreign trips would result in investments worth over Rs 1 lakh crore. Haryana is one of the important industrial states of India with the presence of several multinational corporations. Its proximity to Delhi is also a major attraction to the foreign investors.
A high-level delegation led by CM Khattar visited Canada in August 2015; Japan and China in January 2016; Singapore and Hong Kong in May 2017; Dubai in December 2017 and Israel and the UK this year in May to attract foreign investment. After his Singapore and Hong Kong visit, Khattar had claimed that MoUs with a potential investment of Rs 20,000 crore were signed by the foreign companies with the Haryana government.
During his China visit, the Wanda Group had signed an MoU with Haryana to develop a world-class city over 2,200 acres in Kharkhoda (Sonepat) with an investment of over Rs 60,000 crore. However, the Haryana government soon developed differences with the Wanda Group, which led to the scrapping of the world-class city project by the Chinese mega developer.
His recent UK visit saw signing of MoUs worth Rs 1,500 crore between the UK companies and the state government.
Meanwhile, Goel claimed that 494 MoUs had been signed during the ‘Happening Haryana’ event and after that. Out of these, projects on 173 MoUs have been either implemented or in the pipeline. These projects have a potential to create employment opportunities for 25,923 people, he said.
Goel said the performance of the state on the export front has been commendable despite it being land-locked and lacking natural resources. The state started with exports of Rs 4.5 crore during 1967-68, which has increased to over Rs 82,566 crore in 2016-17, he said.
Performance vs promise
‘Happening Haryana’: MoUs inked Rs 5.84 lakh crore
Investments in past 45 months: Rs 80,000 crore
FDI inflow in past 45 months: Rs 4,878 crore

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