Yogi Govt Extra Cautious: Checking Debt Profile Of Companies Who Signed Mous With UP
Uttar Pradesh chief minister Yogi Adityanath has ordered to check the debt profile of companies who have proposed investments at the recently concluded UP Investors’ Summit last month. Yogi’s order comes in the backdrop of alleged bank loan defaults and frauds by private companies. The state government has signed more than 1000 MoUs worth 4.28 lakh crores during the summit. Now, the government is conducting due diligence with each MoU to ensure the seriousness of the investors.
As per the information, Uttar Pradesh Infrastructure and Industrial Development Commissioner (IIDC,) Anup Chandra Pandey has directed the nodal officers to carefully analyse each MoU pertaining to their respective departments for the debt profile, financial standing, turnover and business verticals of each investor, and forward their recommendations by Friday.
According to Officials, Korea based firm Worldbestech Company will invest Rs 90,000 crore in projects like gas power plant, food processing ventures and cold storage, which constitutes almost 20% of the total MoU’s signed during the UP Investors’ Summit. “”We shall set up a gas-based power plant and allied companies in Mathura that would also solve the problem of potato growers of Mathura and adjoining districts,” Worldbestech CEO and President K K Kim said while briefing state Chief Minister Yogi Adityanath on the investment plans.
On February 22, the Central Bureau of Investigation arrested Kanpur-based industrialist and Rotomac owner Vikram Kothari and his son Rahul, both directors in the company, for alleged default on loan repayments to the tune of Rs 3,695 crore. Meanwhile, another Kanpur-based company Shri Lakshmi Cotsyn Limited had landed in a soup by failing to pay off 3900 crores borrowed from a consortium of 16 banks led by Central bank of India.
Can It Deliver This Time?
UP Investors’ Summit isn’t the first time the state is hosting such investors conference, a similar investment summit was hosted by the UP CM Akhilesh Yadav in January of 2013. When the Global Investment Summit was shifted from the capital of West Bengal to Agra due to Congress’ break up with Trinamool Congress. The summit was seen as a step towards the development of the infrastructure and economy of the state but turned out to be a summit where the CM utilised the investment opportunities for his personal benefits rather than using the opportunity to develop the stagnant economy of the state.
This article is part of Governance Democracy& Politics (GDP) Magazine’s March Issue
