GUWAHATI: Meghalaya may be ranked at the bottom of the ease of doing business list, but “certain lacunae” affecting investor confidence may be offset by building on the strength of the state, experts say.
The state, along with Arunachal Pradesh and Lakshwadeep, was ranked 34th on the list prepared by the World Bank and the Department of Industrial Policy and Promotion, which was released on Tuesday.
Reacting to the report, a member of the Meghalaya State Planning Board said, “Lack of infrastructure and comprehensive policy on investment scares genuine investors. It’s only the fly-by-night subsidy-driven investors who were active till recently. Land holding pattern is another major lacuna.”
He, however, said the limitations could be overcome by focusing on the strength. “We must build on our strength, which is tourism, agriculture, horticulture and floriculture, pisciculture, organic farming of cash crops and harnessing the vast hydro power sources, including judicious use of minerals like limestone without harming the environment,” the planning board member said.
“The present government is seriously looking at formulating an action plan to facilitate ease of business while protecting our rich bio-diversity,” he added.
The annual reform under the Business Reform Action Plan is aimed at triggering competition among states to attract investments and improve business climate.
Andhra Pradesh, Telangana and Haryana were the top three on the list in the given order. Barring Assam, the rest of the northeastern states too fared poorly, ranked in the bottom half of the least-performing category.
Senior advocate of Meghalaya High Court VGK Kynta said the rankings are a “correct” reflection of the trading scene in Meghalaya.
“I have no option but to agree. The report is apt and correct. Being a tribal I desire to protect the state, its resources and assets, especially land and the minerals underneath. Land is sacred to an indigenous person. We have a unique land tenure system, however, without revenue records, except those falling within the leasehold properties of the state government,” Kynta said.
“Besides, societal issues coupled with an insecure mindset affects ease of doing business. The two tier system of governance (autonomous district councils and state government) also causes hiccups. Benami businesses galore and presence of coal mafia too cannot be ruled out,” he added.
Asked about his perception on how investors would be affected by such an unfavourable scenario, a senior businessman in Shillong, requesting anonymity, said the problem was deep-rooted as non-tribals are not permitted to buy land in the state.
“Not everyone can come and set up a business here now compared to say several years earlier when there was a single-window clearance system in place and many traders could come and settle down,” he added.
Besides, there are technical issues such as lack of proper information technology and poor mobile network.
“We all know that information technology is system driven and hence have to be in place for ease of doing business. Unless they are not there, facilitating prompt permits and registrations for trade will be difficult. This has been reflected in the rankings and will certainly affect investor confidence, for which the Meghalaya government should take steps. It’s also about having the right attitude for ensuring a climate suitable for business and growth,” said an industrialist here.
