This is a discussion on Jharkhand special economic package within the Investment forums, part of the Financial Services category; Jharkhand will seek a special package from the central government to develop the state's infrastructure to cope with the huge ...
Jharkhand will seek a special package from the central government to develop the state's infrastructure to cope with the huge investments it has received in different areas.
According to a rough estimate, the state will seek central assistance of Rs.526.3 billion ($12 billion) to develop roads, power and other infrastructure facilities needed for prospective investors.
Chief Minister Arjun Munda raised a demand for the package at a recent meeting with central Finance Minister P. Chidambaram.
According to officials close to the chief minister, Chidambaram asked Munda to prepare a detailed report on the assistance required in various fields.
Munda told: "We need central assistance as we have received huge investment proposals in different sectors. And we must provide good infrastructure to investors so that more investors come to the state."
The state will also request the central government to create a new railway zone in Jharkhand.
A government official said: "According to rough estimates, the state will seek Rs.280 billion for developing roads, Rs.127 billion for power, and Rs.110.25 billion for improving rail links."
The state government has set up a committee to give final touches to the draft proposal for central aid. The committee comprising the secretaries of power, industry, mines and geology and roads will submit the report by Dec 23.
The government will then submit the report to the central finance ministry.
Jharkhand has signed project agreements worth Rs.1,500 billion in mining, steel, power and other industries. The major steel companies investing in the state are Tata, Jindals, L.N. Mittal and Essar.