MOU’s with a promise of an investment
The other day, I read a news item. It was about Maharashtra Chief Ministers’ signing MOU’s with a promise of an investment of over Rs.6000 Crores. In the past, his predecessors have visited a few countries with an idea of attracting investors and lure them to come to this blessed land and set in motion different projects. I remember, after his return from such visits, which were then often described as a views success story, he had pointed out the signing of MOU’s with thousands of crores. He never hesitated to accept congratulations from the people overwhelming response he got from the foreign based companies and NRIs. Normally, when the CM visits such places with this purpose in mind, he takes a team with him, with experts and officials. They – all of them tell us about the benefits, the state will derive from such projects, the jobs and employments that will be generated through them.
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In short, a very rosy picture is painted. When one ponders over the actual implementation of the projected schemes, the picture that comes out is very gloomy. Only few of them take roots. Many sizzle out before that. You know it is just like patient dying after a successful operation. Reason – total neglect in after operation care. The experts, officials and even political personalities do not bother to live upto the promises they have given in MOUs. They failed to monitor the actual movement of the project. The Enron was brought to Maharashtra through such MOU (ofcourse with the centres blessings). The project and idea of generating power for load shedding in Maharashtra were certainly good measures. Everyone who connected with the project was telling us – so much megawatt of power will be available after Enron’s completion. What has happened? Very little power is available compared to its installed capacity. There are still many hurdles. Sufficient care was not taken when MOU was signed. It is a very small consolation that the Enron plant is now in operation mode.
We must find out what happened to the number of MOUs that have signed and sealed. If this is done, a different story will come out and it will shock you with big voltage power. I feel MOUs are like politicians’ promises to voters. Just like committees that are many times set up to solve certain problems, issues. Actually, it is said, if you do not want to settle any issue, then set up a committee. Members will meet, have debates, discussions and with prolonged delays, they may come out with a report. Even then, no action is taken on the report. Funny thing is that they appoint another committee to find out why no action has been taken or on what action was taken. MOUs are nothing short than this. They promise so much but actually very little is done.
We have abandoned the path of mixed-controlled economy envisaged by Pandit Nehru and have now embraced free economy and opened the markets. In those days states, never had such a free hand in signing MOUs with foreign based companies. OK. We have to go along with other nations in the world. Even the country like China had done that. What is suggested is that be careful and always monitor the progress of the scheme. You have the freedom to negotiate, you have the interest of the people to care about, so be alert and keep away from temptations. Public memory is short. Yes. But do not take undue advantage of that.
Offcourse, one may find a silver lining in such cases. MOUs agreements insist on the states to provide for roads, electricity, water and such other basic amenities. Sometime in order to do this, an infrastructure set up is created. And if projects are completed, local people do get employment and the region is developed. If this happens, we can say Long Live MOUs.
