Post economic liberalisation, major states like Maharashtra, Gujarat, Karnataka, Madhya Pradesh, Tamil Nadu, etc have arranged global investors meet on a regular basis. Hundreds of MoUs are signed during this melas. These kind of melas, as observed by me over the years, have failed to materialise the investment the host governments were looking for.
A recent study on the MoUs signed by the Karnataka government in its 2010 Global Investors meet has proved the above point. The follow up study indicates that of the 389 MoUs signed during the meet only 40 projects have been implemented so far. This indicates a PF (Project Fructification) ratio of 1:10!
The 389 MoUs were expected to bring in fresh investment of Rs 3,92,000 crore and generate lakhs of employment opportunities. Instead after two years, what the state got was just 40 projects worth Rs 21,178 crore.
Unabated by this failure, this year in June 2012, the state government signed over 730 MoUs worth Rs 7,60,000 crore in the two day Global Investors Meet. Only time will tell how much of these MoUs will fructify into projects.
A recent study on the MoUs signed by the Karnataka government in its 2010 Global Investors meet has proved the above point. The follow up study indicates that of the 389 MoUs signed during the meet only 40 projects have been implemented so far. This indicates a PF (Project Fructification) ratio of 1:10!
The 389 MoUs were expected to bring in fresh investment of Rs 3,92,000 crore and generate lakhs of employment opportunities. Instead after two years, what the state got was just 40 projects worth Rs 21,178 crore.
Unabated by this failure, this year in June 2012, the state government signed over 730 MoUs worth Rs 7,60,000 crore in the two day Global Investors Meet. Only time will tell how much of these MoUs will fructify into projects.
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