Speaking to CNBC-TV18, BJD Member of Parliament Jay Panda points that while the Orissa government is keen to explore alternative solutions to lure big-ticket investments, interference from political leaders continues to prove to be stumbling block to investments in the state.
Below is the edited transcript of the interview on CNBC-TV18
Q: This is a setback for Vedanta. A majority of the villages located in the area have now rejected the proposal. What does the Orissa government propose to do?
A: It is disappointing indeed. However, I can't comment on what steps the Orissa government will take. All implications and legal angles will have to be considered.
The good news is across the rest of Orissa, other projects are going ahead. Posco has completed its land acquisition process.
Q: Is land acquisition proving to be a huge challenge in Orissa?
A: That is not correct. Land acquisition is a problem all over the country and not just in Orissa. ArcelorMittal did not even start its land acquisition process and made an exit because the Orissa government has a policy of setting milestones before a company can qualify for mining leases. But since there was no progress on the ground, there was no question of meeting the milestone for mining leases. So, there was nothing that we could do.
However, on Monday representatives from the steel giant visited Orissa and explored possible venues for significant investment. But it's still very early days yet.
Q: What are the solutions you propose to lure investment?
A: These projects are designed to take advantage of specific raw-material deposits and it doesn't necessarily make logistical sense that the project is setup in a particular place and you look for accessing raw materials elsewhere.
The real tragedy is that the issue attained political hues. On the one hand, the Prime Minister and his office constantly suggest they are in favour of investments while on the hand, other political leaders playing an active role in stalemating some of these projects. That's unfortunate. I cannot make a specifically comment if any alternative can be found. But all venues will be explored.
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