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Maharashtra blames Centre for low investments

The expected investment in the infrastructure projects in Maharashtra is not forthcoming, says state Deputy Chief Minister Gopinath Munde.

Addressing the half yearly ordinary general meeting of Indian Merchants Chamber in Bombay today, Munde said this was due to dillydallying policy of the Union government which held back several important state projects on environmental and other issues.

Though the state government had cleared three power projects including that of Reliance and Bhadravati several years ago, the Centre is yet to give its clearance in two projects. In fact, some projects whose memorandum of understanding related to power purchase agreement was signed in 1990-91, are still gathering dust at the Centre, he claimed.

He pointed out that the recently inaugurated multibillion rupee Bombay-Pune expressway, which was finalised and submitted to the Centre, got the clearance only after two-and-half year of waiting.

Munde, who is also the state energy minister, was critical about the Centre's attitude towards clearance of state power projects which is at present experiencing a 600 mw power supply shortage everyday.

He demanded that the Centre should decentralise its policy decision and do away with the environmental and other clearance. State should be allowed to take decisions related to land, water, environment and power, he added.

Explaining the various reform measures taken by the Maharashtra government in the last two and half year of the Bharatiya Janata Party-Shiv Sena rule, Munde said that the state had created a competitive environment by simplifying various tax measures as compared to neighbouring states in order to attract entrepreneurs to set up their projects in the state.

"We have chalked out our programmes within our budget proposals and never intended to revise the taxes or tariff rates during the year," he said. During the last three years, only once had the state government imposed entertainment tax on the film industry outside the budget proposals, he pointed out.

"Frequent changes in policy and duty structure will bring about economic instability in the state and we do not want this at the time of political instability at the Centre," he declared.

Highlighting various power projects, Munde said that the state would be self-sufficient in power generation by the month of June next year when the Chandrapur power project would go on stream along with first phase commencement of power production by Enron corporation.

The state has about 8,000 mw power project proposals to be implemented in the next five years at an estimated investment of Rs 350 billion.

The state also made a mark in saving electricity by improving the distribution systems, plant load factor and continued energy audit practices.

UNI