‘‘Dabhol issue must be seen as an exception. It should not be looked upon as an obstacle in private sector investment.’’ Maharashtra additional chief secretary Asoke Basak’s comment while reading policy statement on energy was indicative of the State government’s dilemma. Post-Enron fiasco, the investment in the State has suffered badly and the sagging economy has damaged Maharashtra’s image as an investor-friendly State. The two-day Maharashtra Infrastructure Summit began here is a serious attempt of the government to woo back investors, at least it appears so. To start with, the government made a number of announcements to attract the investor community. In energy, there will be privatisation of power and unbundling, corporatisation and gradually privatisation of MSEB. Chief Minister Vilasrao Deshmukh assured of repealing the Urban Land Ceiling Act after eminent builder Niranjan Hiranandani described it as ‘‘an ulcer and cancer’ to development in urban housing. The proposed Maharashtra Infrastructure Development Support Act, unveiled on Monday, promises minimum government interference and investor-friendly process for infrastructure development. New toll policy was announced, six sites for private jetties were offered and plans to start three inland water transport routes from South Mumbai to suburbs were show-cased. Though representatives of investors and infrastructure companies were upbeat over the offers but were doubtful whether the government really meant business. ‘‘There are bright prospects of win-win situation if the government is serious about the whole business of infrastructure development,’’ said Dwarakesh Shah of Infrastructure Working Group of German Economy. ‘‘If tangible profits and safety of investment can be guaranteed, they would be prepared to participate,’’he pointed out.
