Bundelkhnd and Baghelkhand regions of Madhya Pradesh are facing crisis of drought since last ten years and thus majority of the population of these regions are forced to migrate from their homes in search of employment or elderly people leave to die with hunger and our Hon. Chief Minister is inviting industrialists to establish plants in Madhya Pradesh. According to Hon. Chief Minister of Madhya Pradesh, “M.P. is endowed with a pool of natural resources and gifted with diligent and an amicable populace. Bestowed with such "positive parameters", Madhya Pradesh can become an emulative role model by emerging as one of the most progressive economical hub of the country. We extend our hand towards ameliorating the problems of the people and making the state economically robust.” If this is the reality why populace of Bundelkhand and Baghelkhand are migrating?
With the motto of development of industries in Madhya Pradesh, Industrial Promotion policy 2004 was developed by M.P. based industrialists, various industries trade and industry associations. This policy document accelerated the rapid industrialization in Madhya Pradesh. This new policy vision was also appreciated by Industrialist in India & Federation of Indian Chambers of Commerce & Industry (FICCI) and offered to be a partner in this endeavor. According to this policy an Industry Development Council have to be developed under the chairmanship of Chief Minister, a Trade and Investment Facilitation Corporation (TRIFAC) have also been constituted and an empowered committee for single window clearance will also be created. All these interventions are basically being made to apply provisions of various Free Trade Agreements (FTAs) signed by the Government of India with other countries and regions.
To promote total economic development of Madhya Pradesh Ernst & Young and FICCI prepared a report on possibilities of various sectors of investment like Agriculture, Industry, Infrastructure & services sector in Madhya Pradesh.
The MOU between FICCI & TRIFAC was put into operation on 4th August 2006 at FICCI home New Delhi
To attract NRI Investors, an Investor’s Meet was organized on 16th & 17th January 2007 at Khajuraho, 27 MOUs were signed for various projects at Khajuraho. About 36 NRIs participated in the event.
Madhya Pradesh Government is aggressively marketing the skills and strength of the State. For this Madhya Pradesh Trade & Investment Facilitation Corporation has organised road shows & interactive meets at New Delhi , Singapore , Kuala Lumpur , London , Los Angeles , San Jose , St. Louis & New York
After this some Investor’s meets were also organized at major cities of MP. In 2010 a Global Summit II was organized at Khajuraho on 22nd and 23rd October. The details of these meets and the MOU signed during the various investors meets are as follows:
| S. No. | Place and Date | No. of MOU signed | Amount of MOUs |
| 1. | Khajuraho Meet – 15-16 Jan. 2007 | 18 MOU | 39000.00 Crores |
| 2 | | 102 MOU | 120541.00 –“- |
| 3 | | 61 MOU | 59129.00 –“- |
| 4 | Sagar Investor Meet- 11 April 2008 | 36 MOU | 30698.00 –"- |
| 5 | | 62 MOU | 88018.00 –"- |
| 6 | Bina Refinery & Hindalco May 05 | 02 MOU | 18078.00 -"- |
| 7 | MOU Signed in Foreign Countries | 19 MOU | 1100.00 –"- |
| 8 | Others (Energy) | 13 MOU | 58377.00 –"- |
| 9 | Others ( | 07 MOU | 9157.00 –"- |
| | Total | 320 MOU | 424098.00 –“- |
| 10 | Khajuraho Global | 75 MOU | 91662.69 _”_ |
| | Grand Total | 395 MOU | 515760.69 Crore Rs. |
To analyze the status of these investments proposed in MP copy of all MOUs were asked from TRIFAC through RTI and after many efforts and appeals we got success in getting these MOUs. When we analyzed the establishment of companies it was found that majority of the companies interested to invest in MP are already established in Madhya Pradesh. Thus envisage of being attracting companies from outside the state has not been achieved.
| S. No. | Place | Investors meet | Total | |||||||||
| | | | | Sagar | Khajuraho | Others | Oversees | Khajuraho II in 2010 | ||||
| | ||||||||||||
| 1. | Madhya Pradesh | 28 | 17 | | 12 | 8 | 2 | 2 | | 30 | 71 | |
| 2. | | 14 | 7 | 3 | 16 | 3 | 9 | 1 | | 10 | 63 | |
| 3. | | 22 | 11 | 5 | 8 | 5 | | 1 | | 10 | 62 | |
| 4. | | 4 | 12 | 2 | 7 | 12 | | 3 | | 8 | 48 | |
| 5. | Uttar Pradesh | 3 | 1 | 4 | 4 | 1 | | | | 5 | 18 | |
| 6. | Andhra Pradesh | 5 | | 2 | 3 | | 1 | 1 | | 1 | 13 | |
| 7. | | 4 | 3 | 1 | 2 | 1 | | | | | 11 | |
| 8. | Rajasthan | 2 | 1 | | | 3 | | | | 1 | 7 | |
| 9. | Karnataka | 2 | 1 | | 2 | | | 1 | | 1 | 7 | |
| 10. | Haryana | 1 | | | 2 | 1 | | | | 2 | 6 | |
| 11. | Chhattisgarh | | 1 | 1 | 1 | 1 | | | | 2 | 6 | |
| 12. | Tamilnadu | 1 | 1 | | | | | | | | 2 | |
| 13. | | | | | 1 | | 1 | | | 2 | 4 | |
| 14. | Orissa | | 1 | | | | | | | | 1 | |
| 15. | Meghalaya | | | | | 1 | | | | | 1 | |
| 16. | | | | | | | | 1 | | | 1 | |
| 17. | Others | 13 | 4 | | | | 1 | | | 3 | 21 | |
| Overseas | ||||||||||||
| 18. | | | | | | | | | 7 | | 7 | |
| 19. | | 1 | | | | | | | 4 | | 5 | |
| 20. | | | | | | | | | 3 | | 3 | |
| 21. | UAE | | | | | | | | 3 | | 3 | |
| 22. | | | | | | | | | 2 | | 2 | |
| 23. | | 1 | | | | | | | | | 1 | |
| 24. | | | | | | | | | 1 | | 1 | |
| 25. | | | | | 1 | | | | | | 1 | |
It is advertised that these meets will attract companies of other states to invest for development of Madhya Pradesh. But above table depicts that out of 395 MOUs signed 71 companies are already based in MP. In MOUs 21 companies had not disclosed their address of office so these are considered as others in above table.
These MOUs and their proposed investment has also been analysed and according to investors meet it was found that some of the Investors had not disclosed their amount of investment as well (Majority in cases of Overseas MOUs). Following table is showing investors meet wise investment promised in MOUs:
| S. No. | Place and Date | No. of MOU signed | No. of MOU cancelled | Mentioned amount of investment | Amount of MOUs (in Crore Rs.) | Amount of cancelled MOUs (in Crore Rs.) |
| 1. | Khajuraho Meet – 15-16 Jan. 2007 | 18 | 0 | 18 | 29013.00 | 0 |
| 2 | | 102 | 31 | 97 | 147133.00 | 18137.00 |
| 3 | | 61 | 5 | 61 | 56990.48 | 18968.10 |
| 4 | Sagar Investor Meet- 11 April 2008 | 36 | 16 | 36 | 30367.71 | 22860.00 |
| 5 | | 58 | 20 | 57 | 104554.70 | 60475.00 |
| 6 | Bina Refinery & Hindalco May 05 | 02 | 0 | 2 | 30378.00 | 0 |
| 7 | MOU Signed in Foreign Countries | 20 | 12 | 3 | 1075.00 | Not any disclosed their amount of investment |
| 8 | Others (Energy) | 8 | 2 | 9 | 46923.00 | 10625.00 |
| 9 | Others ( | 15 | 1 | 17 | 95176.00 | 400.00 |
| | Total | 320 | 87 | 301 | 541610.89 | 14934.10 |
| 10 | Khajuraho Global | 75 | 0 | 75 | 91662.69 | 0 |
| | Grand Total | 395 | 87 | 376 | 633273.58 | 14934.10 |
395 MOUs were analyzed and out of these 22 investors had not disclosed their amount of investment while some of the Investors had either reduced or increased their amount of investment. 87 investors either withdrawn their projects or rejected by Government due to some reason or few of them went out in land selection/allotment process. Besides these 87 investors 5 companies (one each of Jabalpur , Gwalior , Khajuraho, Foreign and Indore
The total amount which has to be invested in MP is Rs. 633273.58 Crores out of which projects of Rs. 14934.10 Crores are cancelled means 25% money could not be invested in the state. But after this still there will be Rs. 526676.79 was being invested in the state by the companies signed MOUs during previous meets and in addition to this new amount of Rs. 91662.69 crores will be added from the companies initiated there projects after signing MOUs during II summit at Khajuraho. Thus a total of 618339.48 crores will be invested in the state. Although it is a good sign but our state government does not have land for allotment to displaced persons of various projects of dams, forest conservation, sanctuaries, and other urban projects whereas government is allotting huge lands for these projects. Details of which are as follows:
² Till 10th May 2010 out of 320 companies 130 companies had acquired land but till 1st November 2010 out of these 130 companies 99 companies are retained in the field.
² Total land acquired by these 130 companies was 243787.558 hectares (602409.707 Acres) while 99 companies implementing their projects as on November 2010 status report acquired 449708.473 hactares (1111253.838 Acres) land.
² Previously Govt. has allotted 49704.81 hectare land of his own revenue to 130 companies but till November 2010 Govt. 99 companies received 49796.01 hectare (123048.620 acre) Govt. land which was clearly mentioned as “Govt. Land
² Companies has been acquired 12487.719 hectare forest land while for some land Collectors of respective district are in confusion whether the land is revenue or forest land. Thus they are further inquiry is under process.
² Other than Govt. land companies has also acquired 398325.651 hectare private land.
| S.No. | Investors Meet | No. of Companies received land | Mahakaushal | Bundelkhand | Nimar | Chambal | Baghelkhand | Central | Malwa | Others | Total | |
| 1 | | Meet | 23 | 124045.539 | 14187.727 | 439.584 | 739.120 | 23383.529 | 8.094 | 2236.210 | | 165039.803 |
| New Land | 113610.924 | 9669.903 | | 15.320 | 10618.226 | | 5.210 | | 133919.583 | |||
| Cancelled | 5 | 216.635 | 95.505 | | | 1037.210 | | | | 1349.350 | ||
| 2 | | Meet | 32 | 17896.014 | 5604.140 | 161.880 | 3171.000 | 30603.681 | 144.931 | 105568.689* | 20.234 | 163170.569 |
| New Land | 31.735 | | | | 1991.769 | | | | 2023.504 | |||
| Cancelled | 15 | 1178.516 | | | | 4147.543 | | 351.375 | 4755.230 | 10432.664 | ||
| 3 | Sagar | Meet | 11 | 10023.077 | 890.583 | | | 6442.410 | | 2919.870 | | 20275.940 |
| New Land | 1611.510 | | | | 4435.400 | | 2184.870 | | 8231.780 | |||
| Cancelled | 3 | | 20.000 | | | 1522.610 | | | | 1542.610 | ||
| 4 | | Meet | 8 | 13079.690 | 3417.240 | | | 2363.425 | 10.120 | | | 18870.475 |
| New Land | | 3330.100 | | | 645.606 | | | | 3975.706 | |||
| Cancelled | 2 | | | | 924.000 | | 318.470 | | | 1242.470 | ||
| 6 | | Meet | 7 | 395.340 | | | | 18720.807 | 1945.005 | | | 21061.152 |
| New Land | | | | | 1585.200 | | | | 1585.200 | |||
| Cancelled | 1 | 134.770 | 224.680 | | | 8.270 | | | | 367.720 | ||
| 7 | Khajuraho | Meet | 10 | 795.751 | 4.573 | | 1486.000 | 2849.747 | 83.095 | 364.217 | | 5583.383 |
| New Land | | | | | | | | | 0.000 | |||
| 8 | Others | Meet | 6 | | 936.620** | | | 3526.690 | | | | 4463.310 |
| New Land | | | | | 404.700 | | | | 404.700 | |||
| 9 | Overseas | Meet | 2 | | | | | | | 22.188 | | 22.188 |
| | Total | | 166235.411 | 25040.883 | 601.464 | 5396.120 | 87890.289 | 2191.245 | 111111.178 | 20.234 | 398486.824 | |
| New MOUs 2010 | 41 | 6667.451 | 17783.467 | | 34.072 | 24321.225 | | 2415.566 | | 51221.781 | ||
| | 99 | 172902.862 | 42824.350 | 601.464 | 5430.192 | 112211.514 | 2191.245 | 113526.740 | 20.234 | 449708.601 | ||
| New land invested | | 115254.169 | 13000.003 | | 15.320 | 19680.901 | | 2190.080 | | 150140.473 | ||
| Total cancelled | 31 | 1529.921 | 340.185 | | 924.040 | 6715.633 | 318.470 | 351.375 | 4755.230 | 14934.854 | ||
*- In Malwa region 1,00,000 hectares land is not displayed in chart as it is the highest size of land allotted to a company Saurash Dairy Products Pvt. Ltd. Mumbai for Jetropha Plantation and bio diesel at Shajapur district.
**- Govt. provided land to Bharat Oman company for Bina refineries 774.940 hectare land @Rs. 1914.85 per annum and 161.68 on one time payment of Rs. 25*4.
| S. No. | Place of MOU | No. of MOU signed | No. of companies to whom land is being allotted | Land Allotted (in hectares) | Govt. land*** | | Pvt. Land acquired ***** | |
| 1 | Khajuraho | 15 | 10 | 5583.383 | 2362.515 | 34.98 | 3220.868 | |
| 2 | | 102 | 32 | 163170.569 | 22515.465 | 31.735 | 140655.104 | |
| 3 | | 61 | 23 | 165039.803 | 21449.262 | 5367.203 | 143590.541 | |
| 4 | Sagar | 36 | 11 | 20275.940 | 329.24 | 2614.076 | 19946.7 | |
| 5 | | 58 | 8 | 18870.475 | 10683.08 | 5267.88 | 8187.395 | |
| 6 | MOU Signed in Foreign Countries | 19 | 2 | 22.188 | - | - | 22.188 | |
| 7 | Others | 9 | 4 | 4463.310 | - | - | 4463.31 | |
| 8 | | 18 | 7 | 21061.152 | 12573.15 | 308.394 | 8488.002 | |
| | Total | 320 | 99 | 398486.824 | 49704.81 | 12487.719 | 348782.014 | |
| 9 | Khajuraho Global | 75 | 41 | 51221.781 | 92.2 | Not mentioned | 51129.581 | |
| | Grand Total | 395 | 131 | 448121.661 | 49796.01 | 12487.719 | 398325.651 |
***- Only a few land was clearly mentioned as Govt. land but land on which PL/ML are provided are also Govt. land and it could be easily understood that the most of the land allotted to companies are Govt. land
****- Majority of projects some forest lands are provided to investors but area is not mentioned
*****- In this land some land might be Govt. or forest land.
When we convert Govt. land (49796.01 hectares) in acres, land allotted to the companies is 123048.620 Acres. A family requires almost 5 acres of land for their adequate livelihood. Thus by calculating it accordingly 24,610 families can be settled on this land. This is the figure of only about one third companies and when all the companies has allotted land what will be the number. Major findings regarding land acquisition are as follows:
In many cases name of the place mentioned in signed MOU is other than the site where land is allotted. The details of these are also displayed in table below:
| S. No. | Place of MOU | No. of MOU signed | No. of companies stated place of implementation | No. of companies those changed place |
| 1. | Khajuraho | 15 | 0 | 0 |
| 2 | | 102 | 72 | 12 |
| 3 | | 61 | 55 | 18 |
| 4 | Sagar | 36 | 32 | 6 |
| 5 | | 58 | 53 | 5 |
| 6 | Bina Refinery & Hindalco | 02 | 0 | 0 |
| 7 | MOU Signed in Foreign Countries | 19 | 11 | 0 |
| 8 | Others (Energy) | 9 | 8 | 0 |
| 9 | Others ( | 18 | 16 | 5 |
| 10 | Khajuraho II in 2010 | 75 | 71 | 0 |
| | Total | 395 | 318 | 46 |
Out of 395 contracts made so far 318 companies had stated their place of project while signing of MOU i.e., 19.5% companies were not firm about their project at the time of signing of MOUs. Out of these 318 companies 14.5% companies had either changed or added other districts also with their proposed place.
Madhya Pradesh is already facing shortage of electricity and water. In Madhya Pradesh thousands of villages and towns are facing power cuts for around 16-18 hours/day. Out of 320 old MOUs only 18 companies and from 75 new MOUs only 9 companies has mentioned their electricity requirements and from these 18 old companies 8 were already terminated their projects. Thus there are only 10 old and 9 new companies mentioned their electricity requirements. Whereas all the companies needed electricity even during construction of their premises.
Although many companies are going to establish their own captive power plants but for generating electricity they needed plenty of water and coal. In lack of water and coal how companies are capable to generate electricity and before production of electricity they needed a lot of electricity at their construction sites. Development of Madhya Pradesh will be kept aside and the companies are going to fill their own pockets.
For such a large establishment they also need plenty of water and only few of them had made arrangement for their water availability. But in MOUs only 67 companies (48 Old and 19 New MOUs) stated regarding their water requirement. Out of total 395 projects 20 projects stated that they require water but they did not mentioned quantity or source of water whereas 10 other companies have declared source of water which is either perennial river/canal of dam or from dam itself.
What measures these companies will take to reduce environmental pollution and waste disposal. These are not mentioned in any of the MOUs.
All the MOUs signed at different Meets should be uniform but after analysis it was found that Govt. had made some promises to investors of one meet whereas investors of other meet were promised for other matters. Few of these are
- Assuring required infrastructure, facilities, incentives, concessions and all necessary clearances from single window system
- Investors should obtain necessary and clearances and concessions from State Govt.
- Concessions/waivers requested by the investors would be placed before Apex Level Investment Promotion Empowerment Committee of the State Govt. for consideration.
In the state disable, old aged, or helpless peoples have to go several times to several windows for sanctioning of their old age pension or allowance to disabled and many other benefits provided by Govt. But in these meets investors had promised for single window system. Govt. should consider all the concessions and waivers which investors have requested, these requests are not disclosed at any stage.
Every State has responsibility of optimum utilization of its resources for benefit of its populace. But when we analyzed these MOUs not only land, but various other resources like iron, limestone, magnesium, aluminum, coal and water will also be provided to these companies and nowhere was it mentioned that the companies using these resources will provide their production for upliftment of population living in Madhya Pradesh. Majority of companies were promised for exclusion from tax, etc. So, it is matter of question that what mistake does other business owners and farmers had made that they have to pay taxes, Mandi fees etc.
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