by Moiz Mannan
With one estimate putting the north Indian state of Uttar Pradesh as the new fastest growing recipient of remittances from its overseas diaspora, the state’s leadership is drawing plans to tap non-resident Indian (NRI) money for its industry and infrastructure.
The question , though, would be that of credibility of the political leadership and reliability of the state’s business atmosphere. It has been reported that Chief Minister Akhilesh Yadav, who hasn’t had much luck with foreign investors of late, has now instructed the concerned departments to woo the state’s diaspora overseas.
As part of the confidence-building exercise, senior officials briefed a delegation of Foreign Institutional Investors (FIIs) and venture capitalists from India and abroad last week. They were told about the impending introduction of an Industrial Services Guarantee Act with accountabilities and penalties. The draft of the Act is in an advanced stage and will be announced soon after clearance from the chief minister’s office.
UP has set up an entity called ‘Udyog Bandhu’ — a hand-holder organization for industrialists — to target NRIs and compile a database of those with the potential to invest.
It is learnt that Udyog Bandhu, a unit of the state’s infrastructure and industrial development department, is looking for a consultant to do this job. According to a report in The Indian Express, several foreign-based organisations of NRIs, who have links with UP, will also be contacted.
Yadav has already cleared a proposal to set up an independent department for specific needs of the diaspora. An NRI Cell is already up and running in the state, but that hasn’t much helped bring UP any closer to its people living and working abroad. Statistics compiled by the central Ministry of Overseas Indians Affairs (MOIA), over the past few years have revealed a sharp rise in the number of people from UP moving out of the country.
According to official statistics, the number of workers given emigration clearance from Uttar Pradesh has gone up from just over 66,000 in 2006 to more than 200,000 now. For the same period, the numbers for Kerala have climbed down from over 1,20,000 to around 85,000 and those for Tamil Nadu from a little over 155,000 to just about 65,000.
It was in 2009 that Uttar Pradesh overtook Kerala as the Indian state sending the maximum number of people abroad for work. UP sent 1,25,000 people for work abroad in 2009 as against 1,19,000 who took the flight out of Kerala, according to the Ministry of Overseas Indian Affairs. Earlier this year, the Indian government set up UP’s first Protector of Emigrants office in Rae Bareli.
The UP government has launched ‘Nivesh Mitra’, a web based online facility for entrepreneurs desirous of setting up an enterprise in UP. Udyog Bandhu is acting as a nodal agency for implementation of this project.
‘Nivesh Mitra’ has been envisaged as a simple, user friendly, entrepreneur centric web application that enables existing and prospective investors and entrepreneurs to get online clearances/NOC’s from concerned department with ease and minimal “running around”.
The government claims that now the entrepreneur will not need to run around for filling and submitting various application forms manually with a number of enclosures in order to get the requisite clearances.
Entrepreneurs setting up small, medium & large scale industry have to file application forms mandatorily through this system. ‘Nivesh Mitra’ provides the facility of online submission and updating of all forms required for various approvals by the entrepreneurs.
The facility will not only provide the relevant information and support entrepreneurs in obtaining all the required clearances and approvals, but will also help in redressing concerns and grievances with the support of all Departments, District Officials and Industrial Associations.
The functions of Udyog Bandhu, which initially was conceptualised as coordination agency between entrepreneurs and government, has since been functioning as catalyst for investment promotion.
Tripartite Meetings are held on monthly basis with top officials of all concerned government departments, financial institutions, banks and corporations. Problems are taken up in such meetings and the parties are given the opportunity to present their case.
Working Groups have been constituted for Energy, Trade Tax, Infrastructure, Labour, Environment, Food Processing, Information Technology and Financial Institutions/ Banks to address policy matters.
In addition, a state level Financial Institutions Working Group has been constituted with Infrastructure and Industrial Development Department (IIDD) as its Chairman and MDs of UPFC, PICUP and ED, Udyog Bandhu, and representatives of IIA/PHDCCI/CII as its members. The entrepreneurs are given opportunity to present their cases. Udyog Bandhu acts as the convenor.
High Powered Committee meetings are held under the Chairmanship of the Chief Minister. State level Industry Associations, Principal Secretaries and Secretaries of different departments related to Industries have been nominated as permanent members.
On paper, the state has done quite a bit that should impress NRI investors and motivate them (with a bit of patriotic zeal thrown in) to put money in the state’s projects. In reality, however, the state will have to really exert itself in proving the worth of political will, transparency, cutting of red-tape and sorting out of labour issues before that can happen.
The Peninsula
