Ashok Gehlot govt cracks down on non-performing firms

200 MoUs to be cancelled; govt to send notices to firms which have not started work after 2015 Resurgent Rajasthan Summit

Published: 08th January 2019 11:46 PM  |   Last Updated: 08th January 2019 11:46 PM   |  A+A-

Senior Congress leader Ashok Gehlot

Rajasthan CM Ashok Gehlot (File photo | PTI)

Express News Service

JAIPUR: The Ashok Gehlot Government in Rajasthan has decided to cancel more than 200 MoUs signed during the Resurgent Rajasthan Investment Summit by former Chief Minister, Vasundhara Raje in November 2015. The Gehlot Government has said that the companies which have not started work in the state will be given notices.

As many as 470 MoUs worth Rs 3.37 lakh crore were signed during the summit according to which companies had to invest in Rajasthan, in areas like tourism, mining and medical. In return, the government had promised them land at discounted rates and tax concessions.

Notably, Anil Ambani's Reliance Group and Gautam Adani's Adani Group of companies had signed some MoUs, but most companies did not show interest in investing in the state.

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Of the total 470 MoUs, 154 had been considered defunct by the previous government also as their investors did not follow up after the summit. In Renewable Energy, companies like Reliance Energy, Adani and Ager Power India signed an MoU of Rs 1.90 lakh crore. However, Reliance Energy, Ager Power India, Sun Edison did not follow up after that.

According to industry minister Parsadi Lal Meena, in the last three years only 124 MoUs of these were the ones on which work started. Only about Rs. 12 thousand crore have been invested. "Companies that have not started work will be given notices. If companies do not come, then the MoU will be canceled and others will get opportunities in such a scenario," he said.

Industry bigwigs like Cyrus P Mistry, Chairman of Tata Sons, Anil Ambani, Chairman of Reliance Anil Dhirubhai Ambani Group; Anand Mahindra, CMD, Mahindra & Mahindra, among others had come. The Raje Government had sought to partner with key stakeholders in its journey towards sustainable long-term growth and inclusive development.

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