Investment tap dries up, but infra devpt emerges as bright spot

JAIPUR: Like most governments, the current Congress dispensation in the state devoted the first year of its term for policy-making and setting the direction.
The second-year was supposed to be the year of implementation and reaching out to the investors’ community. But the outbreak of Covid-19 pandemic upended all the plans and strategies.
Barring a few bright spots, the current year will go down in history as a lost year for growth of industrialisation in the state.Additionally, with depleting tax revenues because of closure of industries during the lockdown and lower utilisation of capacities subsequently, the government has resorted to new taxes, further straining its competitiveness as an investment destination of choice.
Instead of reducing taxes as a relief measure to the Covid-hit industry, the government raised land tax, electricity tariffs and water levies. The government provided some relief in terms of reducing the requirement for earnest money, though implementation remained sketchy and did not benefit the industry. Except in the solar sector, the proposed investments in the state remained far and few.
The government announced customized incentives to Adani Green Energy for its proposal to invest Rs 50,000 crore for developing solar parks in Jaisalmer, Bikaner, Jodhpur, Jalore and Barmer over the next 5 years. Besides, there is nothing much to count on as investment proposals that the state has received in the current year.
One of the bright spots is the record selling of industrial plots during the current year by RIICO. The sales of plots would not translate immediately into investments, but the projects will come up in the next two-three years.
The industry feels that while the rates in new industrial zones have been reduced by 35%, the land cost in existing zones is still higher compared to other states.
Vishal Baid, chairman, CII-Rajasthan, said, “The sale of a record number of industrial plots is a good sign for investments. But the government should think of reducing the land rates in existing industrial areas. If some plots do not get sold in e-auctions for a couple of times, their price should be reduced and this will attract investors.”
RIICO has also undertaken the budget proposals like providing plug-and-play facilities to industrial units. Besides, it launched 17 industrial zones in the state, which is a record in its 50-year history.