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Arjun Munda, Chief Minister, Jharkhand

Arjun Munda Media India Group

"Unique investment opportunities for NRIs & PIOs"

A true son of the soil, Arjun Munda had very early initiation into politics and became a member of the Legislative Assembly of the undivided Bihar state at a young age of 27 years. He climbed the political ladder rapidly and became the Chief Minister of Jharkhand in 2003, once again becoming one of the youngest chief ministers in India. He began his second term as the chief minister in September 2010 and since has been leading the state aggressively towards balanced and sustainable development, with a clear focus on inviting investments and expertise from all over the world to help move this resource-rich state to its rightful place. In an exclusive interview with Media India Group, he outlines his strategies and vision.

How is Jharkhand positioned to invite investments from overseas, especially the NRIs and PIOs around the world?

Traditionally, Jharkhand has had a strong industrial base with cheap labour, excellent industrial climate and adequate skilled and creative workforce. The contribution of Industries to Gross State Domestic Product (GSDP) is significant and has increased from 25% to 40% during the last decade. The state is ideally located in close proximity of ports e.g. Haldia, Paradeep, Dhamra. It has a wide network of road and rail connectivity besides being strategically located in the centre of emerging markets of both east & northeast India, which constitute almost one-third of the population of the country. The state has several world-class R & D institutions and reputed consultancy organisations like the IIM Ranchi, XLRI Jamshedpur, MECON. Thus, it provides unique opportunity for the overseas investors.

What are the new investment promotion policies of your government and which sectors are best placed to attract overseas investments?

The state has a progressive industrial policy coupled with an excellent resettlement and rehabilitation policy and a largely young population of 32.97 million. It envisages promoting employment-intensive industries e.g. IT & ITES, Textile, Food Processing and Bio-technology, Auto and Auto Component industries besides Tourism with Five Star Hotels / Resorts, Health Sectors including Super Specialities Hospitals, Medical Colleges / Para Medical institutions etc. The State is providing series of incentives for promoting investment e.g. Comprehensive Project Investment Subsidy (CPIS), reimbursement of VAT, Luxury tax, Entertainment tax, Stamp Duty, Registration Charges etc. and financial assistance for Quality Certification, Patents etc. besides host of other incentives.

What are the other forms of collaboration/ cooperation that you are looking at for overseas Indians?

The state is looking for NRI investments and collaboration in setting up of Industrial Parks or SEZ for IT & ITES, Industrial Park in Food / Biotechnology, Pharmaceuticals, Plastic Park, Packaging, Organic Silk Park, Design and Export of Organic Silk Material, Automobiles including setting up of Export Oriented Automobile Components, Clean Coal Technology, Collaboration with existing industrial groups for implementing new technologies and innovative management practices to improve efficiencies. The state expects to further improve skill and quality of manpower with world class medical / engineering/ management and skill development institutes.

As many PIOs and NRIs hail from the Bihar- Jharkhand region, how are you reaching out to them?

The State has become partner of Overseas India Facilitation Council (OIFC) besides setting up of NRI cell at Ranchi and taking help of Chamber of Commerce and Industries Association of Jharkhand and Overseas. We are regularly participating in overseas exhibitions and industrial fair like the Hannover/Hemtextle. We also regularly participate in events in the United States, Canada, Germany, South East Asia, China, Australia & Europe. Assocham India is acting as partner in organizing investors’ meet in India and abroad. I had visited Germany (Hannover-Hamberg-Berlin-Munich) and interacted with Berlin Chamber of Commerce and Industries, Hannover Chamber of Commerce, representatives of BMW/Siemens etc. Besides visiting New York, also interacted with the USIB (US India Business), OST and Port Authority, students in Columbia University, representatives of Huglus network system and USIBC (US India Business Council) members. I also met with the ICCC (the Indian Chamber of Commerce Canada) in Toronto during my recently.

What potential do you see for developing Tourism by NRIs and PIOs to your state?

Our state is blessed with a very good climate and places of scenic beauty including a number of falls, besides the places of religious worship such as Parasnath, Deoghar, Itkhori etc. for Jains, Hindus and Buddhist respectively, which have the potential to be converted into tourist resorts. The tourist inflow in the state has been increasing at 12-15 % annually. Besides domestic tourists, numbers of international tourists have also gone up. The State has airports at Ranchi, Jamshedpur, Bokaro, Dumka, Dhanbad etc. Few more airports at Deoghar, Palamau and Hazaribag are being developed. These air taxi facilities will promote religious tourism, eco-tourism, mine-tourism and rural-tourism. The NRIs may also set up a Medicity in Ranchi and Hazaribag to link tourism with health care. They may also invest in quality Star Hotels and Resorts.

What about the social sector collaboration with overseas Indians and Jharkhand government? How can overseas NGOs help in social development of your state?

The state has Gross Enrollment Ratio (GER) for higher education and technical education at 7.53%, which is low compared to the national average of 15%. With a view to enhance the ratio, the state intends to establish about 200 new technical institutions for offering Diploma, Degree and Post Graduate courses. These institutions can be developed as private institutions, or as PPP ventures. Although a number of private technical institutions have come up in the State in recent past these are still not adequate. Infrastructural facilities of three engineering colleges at Ramgarh, Chaibasa and Dumka and a Polytechnic at Silli have been created by the state government and are ready to be operated under PPP mode provided necessary supporting facilities in the form of teaching faculty, non-teaching technical and non-technical manpower, laboratory facilities including testing, and scientific equipments etc. are provided by the willing PPP partner to make it operational. Besides this skill development activities in a number of diverse fields can be started.

What are your projections for promotion of Jharkhand in 2012?

The state has taken up intensive investment of about 35% of total plan expenditure in infrastructure e.g. road, power and water resources besides promotion of academic and training institutions with projected growth of 12% during financial year 2011-2012. It is expected to improve employment opportunities in rural area besides enhancing the level of income and quality of life of rural people in Jharkhand.



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