Congress Questions Maharashtra’s Davos investment Claims

Mumbai: The Mumbai Congress on Tuesday questioned the Maharashtra government’s claim to secure major investment commitments at the World Economic Forum (WEF) in Davos, alleging that the BJP-led Mahayuti government was indulging in “event management” rather than delivering real economic results. Mumbai Congress president and Lok Sabha member Varsha Gaikwad expressed doubts about the need to sign Memorandums of Understanding (MoU) in Switzerland with companies headquartered in Mumbai.

Pointing out that many MoUs announced in Davos were signed with Mumbai-based real estate and investment firms, Ms. Gaiwad asked why such agreements could not be signed in Maharashtra. His remarks came despite Maharashtra Industries Minister Uday Samant saying that the State had signed 89 MoUs worth Rs 37 lakh crore in Davos.

A delegation of senior officials led by Chief Minister Devendra Fadnavis, along with Mr. Samant, is on a seven-day visit to Davos for the WEF. According to the government, MoUs worth Rs 37 lakh crore were signed in the first two days of the meeting alone. If implemented, these investments are expected to create hundreds of thousands of jobs in sectors such as infrastructure, manufacturing, renewable energy, digital services, food processing and automobiles.

Questioning the government’s claims, Ms. Gaikwad said that the Prime Minister had announced on the first day of the WEF that MoUs worth Rs 14.50 lakh crore had been signed and would allegedly create 15 lakh jobs. The companies mentioned include Lodha Developers, owned by family members of Minister of State Mangal Prabhat Lodha, with a proposed investment of Rs one lakh crore; K. Raheja Group with Rs 80,000 crore; and Alta Capital-Panchshil with Rs two lakh crore.

“All three companies have their offices in Mumbai, some near Mantralaya. Why was there a need to go to Davos to sign this MoU when the companies are based in Maharashtra and have their headquarters in Mumbai?” Ms. Gaikwad asked.

Responding to a question on the share of foreign direct investment (FDI), Mr. Samant told this newspaper from Davos that 30-60 per cent of the proposed investments involve foreign direct investment. He added that around 80 per cent of the investment committed by Lodha Group is foreign direct investment.

Ms. Gaikwad said the Congress was not against investing in the state, but the public should be made aware of the difference between the government’s claims and the actual reality. He pointed out that similar allegations were made last year when the Prime Minister said that MoUs worth Rs 16 lakh crore had been signed in Davos.

“If such huge investments and employment are really coming to the state, why is the unemployment rate not falling? How many Memorandums of Understanding have been implemented so far? How much investment has been implemented and how many jobs have actually been created?” the Congress leader asked, demanding that the government publish a detailed white paper to put the facts before the public.