The government watched helplessly as Maruti Suzuki drove into Gujarat from Haryana.
The state government watched helplessly as Maruti Suzuki drove into Gujarat from Haryana carrying with it a mega project worth Rs18,000 crore.
Chief minister Prithviraj Chavan said the rigid land laws in the state are to blame for investors choosing Gujarat over Maharashtra.
The state failed to assure Maruti that it would give the company the required land — at least 1,000 acres — to set up their plant. "Gujarat is far more liberal in granting concessions to the private sector compared to us," he said.
The government has realised that it has to change the industrial policy if it does not want Gujarat to bag all the coveted projects. A source in the industries department said the government was mulling a new policy and land acquisition would be the focus.
"Despite stringent central laws on land acquisition, the state government will have to build a land bank if it wants to attract investors," he said.
The source said that most investors want land close to Mumbai. This is difficult, he said, because the government has had a bitter experience in the past.
"After the special economic zones fiasco, the government is cautious in making commitments to private players," the source said.
The government had to abandon its biggest SEZ at Raigad, following major protests by farmers. Also, fishermen in Jaitapur have been trying to stall the nuclear power project as they do not want to part with their land.
Chavan and industries minister Narayan Rane are likely to fine-tune the changes so that the state comes up with an investor-friendly industrial policy, the source said.
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