Jaitley's Message To States: Reform Or Perish

Either usher in "reform" or perish is the message Finance Minister Arun Jaitley delivered to all state governments and a clutch of investors and industrialists who gathered in Gurgaon as part of the first Haryana Global Investors Summit on Monday.

"Reform or perish could not be more true than it is today. Industrialists are not philanthropists. For every rupee they spend, they weigh many factors," Jaitley said, adding that policy paralysis, unreasonable taxation structures, low ethics and integrity and unfriendly policies drive away investments.

Jaitley also had a message to all state governments. "State governments should go in for reforms if they wish to attract investments," he said, adding that some districts in states have witnessed rapid development, others are still lagging.

"There are several other areas that Haryana will have to race through if not walk through. When social challenges emerge, they emerge because of inequalities. Therefore, development that is taking place in one part of the state should also be addressed in other parts of the state. Educational institutions also have to be expanded," he said referring to the recent violent protests by the Jat community for job reservation.

Jat Protests
Referring to the Jats reservation protest, which led to curfew in certain parts of Haryana, Urban Development Minister M. Venkaiah Naidu said, "The recent unfortunate events should not be repeated. There is nothing wrong in making demands but proper democratic procedure must be followed."

Naidu also said that the request by Haryana Chief Minister Manohar Lal Khattar to make Gurgaon a smart city is under consideration. From Haryana, Faridabad and Karnal have made it to the shortlist.

Meanwhile, Jaitley urged states to utilise the decision of the Union government to make amendments to the Motor Vehicles Act to do away with permit system in public transportation as well as the decision to permit 100 per cent foreign direct investment (FDI) in food processing industry. Jaitley said the greatest advantage that Haryana has is its proximity to the national capital and being a part of the various industrial corridors that are being created.

Khattar said the state had targeted Rs 1 trillion in investments while formulating its enterprise promotion policy in August 2015.

"The investment commitment has already exceeded 200 per cent of this target," he said.

The state is implementing a single-roof clearance system where in all other industries will get permissions in one go. This has a statutory backing via the industrial promotion act, said state industries minister Captain Abhimanyu.

While busines leaders like Mukesh Ambani and Cyrus Mistry were not present, a fair share of investment promises were made on the first day of this two-day event.

"We will expand in each of our business in the state with the single roof clearance," said Malvinder Mohan Singh, executive chairman, Fortis Healthcare Ltd.

Naresh Trehan, chairman and managing director of multi-specialty medical institute Medanta, said the company will invest in a medical school and another 1,000 beds over the next five years in the state. Medanta operates in Gurgaon.

Rajiv Singh, vice-chairman, DLF Ltd, said the group will spend Rs 20,000 crore over the next 5-10 years in the state.

Y.C. Deveshwar, chairman, ITC Ltd, said the group will invest Rs 550 crore in the food processing sector besides helping Haryana farmers with model farms where modern farming techniques are used.

Many Japanese and Korean investors took part in the event. Automobile companies that have factories in Manesar and Gurgaon were also present.