Jharkhand the next investment magnet?

Jharkhand is home to 40% of India's mineral reserves

The Dollar Business Bureau 

In a new reward to Jharkhand's efforts for garnering foreign investments, Japan voiced its interest in the mineral rich state. Masayuki Taga, Consulate General of Japan, called on Jharkhand Chief Minister Raghubar Das and said that his country was keen on investing in Jharkhand. 

The state of Jharkhand, formed in 2000, overflows with immense untapped potential in the form of its mineral-rich land. Home to 40% of India's mineral wealth, the state has aspirational plans of mimicking the success story of Gujarat and Maharashtra in attracting foreign investment. 

In the recent years, CM Das has unfolded many measures to make the state business friendly, including a single window clearance scheme. The Global Investor Summit to be held in Ranchi on 16-17 February 2017 is Jharkhand's version of the Vibrant Gujarat Global Summit. This massive global effort has been the result of excessive international collaboration by the government of Jharkhand. The home ground of Tata Steel also secured the 10th rank among Indian states in terms of FDI attracted by the state in 2015. 

The year 2016 was marked by visits made by delegations from the Jharkhand Government to various countries including US for IT sector, Japan and South Korea for the automobile industry. Seminars in Australia, Singapore and New Zealand coupled with road shows in the four major metropolitans of Bengaluru, Hyderabad, Delhi and Kolkata have given Jharkhand some much needed visibility. 

These detailed efforts have already resulted in investments to the tune of Rs 23,000 crore in the food processing, power and steel sector. Jharkhand aims to become the power hub of India by 2019. 

The iron-ore rich state is likely to see heavy investment from the state in the steel sector, considering the steel ministry's target of more than doubling India's steel producing capacity by 2030. Jharkhand is one of the four states for which the government has planned SPVs (Special Purpose Vehicles) to set up steel plants with a capacity of 3-6 million tonnes per annum. 

On international turf, Jharkhand CM's visit to Singapore in December saw results in terms of a decision to sign an MoU with NEWater, that is to help build a water management system for the state. 

With utmost focus on good governance and transparency, the government of Jharkhand seeks to make the state a magnet for future FDI flows, following in the shoes of states like Gujarat and Maharashtra.

The Dollar Business Bureau - Jan 17, 2017 12:00 IST