Unburdening Punjab from Debt through Investments

[dalvinder45]

Unburdening Punjab from Debt through Investments​

Dr Dalvinder Singh Grewal

Prof Emereitus Desh Bhagat University (9815366726)

dalvinder45@rediffmail.com​

As per the press reports in the last twenty years, Punjab’s debt burden has nearly risen by a multiple of ten, putting immense stress on the state’s finances. Punjab Chief Minister Bhagwant Singh Mann wrote a letter to Governor Banwari Lal Purohit on Tuesday (October 3), seeking his help in getting a moratorium of five years on the repayment of the state’s burgeoning debt, which is estimated to grow to Rs 3.27 lakh crore by the end of this fiscal. With Punjab’s interests in mind, I would urge you to convince the Prime Minister to accord a moratorium on debt repayment of the state for at least five years. This is a matter of great worry for all Punjabis as instead of decreasing debt, money has been spent on unproductive expenditure like advertisements and travels.

I have been in Assam since last week and have been comparing the state of affairs in Assam in relation to Punjab. Prime Minister visited Assam for two days last week and help develop the state through more than 5 Lakh crores investments in just two days. Prime Minister Modi's look towards East attitude has changed Assam dramatically. As 6000 tribal dancers were setting a record of largest group dance and 600 delegates from world over led by Foreign Affairs Minister visited Reserve my attention was about the flow of funds to the states. The Chief Minister announced that the state has got more than 5 Lakh Crores of investment during these two days though the Chief Secretary mentioned these as 4.80 Lakh crores planned to be pumped into the state.

Tata, Adani, Vedanti and JSW committed an investment of Rs. 1.8 lakh crores where Ambani, Adani and Vedanta groups committed to invest 50,000 crore each. Gadkari announced Rs 80,000 crore Road Infra Project in Assam. Minister Sonowal announced Rs 4800 crore to transform Assam's waterways. Medanta signed MoU to set up 750 crore Super Speciality Hospital. Signing of MoU worth over Rs. 1 lakh crore for non-financial use with Japan and Singapore the very first day was another achievement. The state government signed an MOU worth Rs.30000 crore with Tata Power company in the renewable energy sector; Rs. 23,300 crore MoU in the oil exploration sector; Rs 1711 crore MoU with NRIs; Rs.5000 crore MoU with Adani Total Gas Limited; Rs. 5850 crore MoU with Green Co Energy; Rs 350 crore MoU with Well-fare Energy in the renewable energy sector; Rs. 2100 crore MoU with ESR group. Rs 1200 crore MoU with SR group; Rs 250 crores with gas grid; Rs. 250 crores MoU with Bio Friend Industry; Rs. 150 crore MoU with Lizabati Hospital Ltd., to set up a multi specialist hospital; Rs 400 crore MoU with JB Marriott Hotel; Rs 7000 crore MoU with JSW energy to set up renewal energy; Rs. 1500 crore MoU with ATCC Concept Limited to set up an alternative investment fund in Assam; Rs, 197 crore MoU with SS Poultry; Rs 5600 crore MoU with Siddharth Engineering Limited Infra Technology: Rs. 450 crore MoU with Bone Dada Engineering Limited: Rs 250 crore MoU with Shah Breeding Farm: Rs 150 crore MoU with DP word etc.

Apart from these, the state government also signed non-financial agreement with the Ministry of Trade and Industry Singapore for imparting training on nursing talent skills and Japan's micro career partner for imparting training on the Japanese language for the placements in Japanese establishment. Asia's largest data centre was inaugurated by Minister Scindia in Guwahati. Minister of Railway announced Assam Bhutan Railway. New opportunities for investment were also found in Assam Tea Industry. Union Minister Jyoti Rao Scindia inaugurated 5G lab at Guwahati University. The MoUs was also signed for setting up a training centre to oil explorations. The total amount turns out to be more than 7.5 Lakh crores as per rough estimate Most of these MoUs at state level were signed in the presence of the Chief minister and other ministers. Assam now needs skilled workforce to absorb these heavy Investments.

In addition, number of MoU were signed at district level as well. Kamrup district signed MoU worth Rs. 385 crores with investors. Assam Aerospace and Defence Manufacturing industry also signed a large amount MoU. 50 MoU were signed with 45 entrepreneurs. Tinsukia District signed MoU for investment worth Rs.269.75 crore. In Shiv Sagar district 42 investor signed MoU worth Rs. 85.37 crores; in Dibrugarh 191 investors signed MoU worth 1640 crores. The details of MoU signed in other districts is awaited. I have never seen such a great rush for investment in any of the state so far.

Punjab has been always in death of investments. There does not appear to be positive enough effort to get such large investments. The state administration must wake up and unburden Punjab from heavy debt with positive steps like good relations with the centre; industry and foreign countries. It must give a very level playing field for the industry; improve administrative and justice system; involve positive attitude executives and stop wastage on unproductive expenditure if it has to save the state from this burdened state.