Mumbai : Last week, when the Foxconn signed a Memorandum of Understanding (MoU) with the State government, the opposition Congress raised questions over the exact quantum of investment the company has promised to invest and hoped it was not overstated by the State government. But, the history of foreign investments in the state also raises questions over the deliverability of promises.
An overview of the MoUs signed in past 10 years in the state shows that not even half of them have transformed into the production units. According to the figures available with the industries department, the success rate of industries department in past 10 years had been around 10%. That means only one company out of 10 that were approached came up to the stage of signing an agreement. But, the real problem starts after that, in implementing the agreements.
There have been over Rs. 3.52 lakh crore worth of agreements signed in past 10 years. All these put together promised creation of over 3.84 lakh jobs. But, except only a few IT companies in and around Pune, hardly anything of the-se materialised. Most shocking thing is that the State government has lost track of several of the MoUs signed in the past, officials claim.
Industries minister Subhash Desai, while accepting that the situation is not very satisfactory on this front, said that the government is trying had to change it.
“We are studying the reasons why the ‘success rate’ is so low,” he said and assured that the government intends to honour all the previous agreements also in its bid to fast-track the development in the state. The grim situation on the power, land and clearances too is being changed rapidly,” he added.
A delegation under the leadership of Chief Minister Devendra Fadnavis might visit Japan next month, where a few more MoUs with companies like Kawasaki are expected to be signed.
