M A I N   N E W S

Reliance, Punjab ink MoU on agri project
Ajay Banerjee
Tribune News Service

Chandigarh, August 1
The much-debated agricultural produce marketing and processing project of Mukesh Ambani-led Reliance Retail Ltd got off the ground today. The company and the Punjab Government signed a memorandum of understanding (MoU) at a simple ceremony here.

Reliance scaled down its earlier proposal on investment in the project and did not even give a deadline for making the project operational. Neither Reliance chief Mukesh Ambani nor the Punjab Chief Minister, Capt Amarinder Singh, attended the function. The Deputy Chief Minister, Ms Rajinder Kaur Bhattal, was present along with her Cabinet colleagues, Mr Surinder Singla and Mr Lal Singh. Mr A. Shankar, President, Corporate Affairs, Reliance, was also present.

The MoU was signed by Mr G.S. Cheema, Financial Commissioner, Development, on behalf of the Punjab Government and Mr Sanjeev Asthana, President, Agri and Food Supply Chain, Reliance Retail Ltd. Mr Asthana said the company would be investing Rs 500 crore over the next three years. When pointed out that the company in its initial plans submitted to the Punjab Government had fixed an investment target of nearly Rs 3,000 crore, he added: “There will be no limit to the investment. I have just told you the plan of the company for the moment and am not giving out any long-term investment plans".

Punjab was crucial for Reliance, he said, adding that it was not a Punjab-specific project. Rather, it was to run in 10 states, including certain states in North India.

Interestingly, the Punjab Government did not provide a copy of the MoU to mediapersons though they repeatedly asked for it. It was difficult to understand why both parties were keeping details of the MoU secret. When Reliance signed an MoU with Haryana a few weeks ago to set up an SEZ, it was a highly publicised affair.

On the actual date of starting of the project, Mr Asthana said: " It will start soon, most probably by October-end. However, we have not set any deadline". The company was doing some feasibility studies, he said, claiming " the project will usher in the second Green Revolution in the state and farm incomes will rise". Punjab officials justified the decision of not announcing a date, saying it was the first- of -its- kind venture in the state. Hence, the caution. They said adequate safeguards had been provided to protect the interests of Punjab. In case the company does not use the land for the intended purposes, it will have to pay the prevailing market price for it. Besides, the company cannot do anything without the permission of the state government.

Reliance officials said the company would hire agricultural, veterinary and dairy experts and provide direct or indirect employment to 5 lakh people across the country. Reliance would procure fresh produce and process fruits besides buying vegetables, grains, oilseeds, poultry and milk from Punjab farmers.

As many as 50 rural business hubs would come up which would be supported by world- class infrastructure systems. The company's target in the sphere of fruits and vegetables is to spread the procurement area to over 3,00,000 acres and grow over 2,00,000 tonnes of horticultural produce. In the milk segment, it plans to procure 7 lakh litres per day from 1.5 lakh farmers spread across 3,000 villages.

The Punjab Finance Minister, Mr Singla, and Ms Bhattal termed it as "historic day" for farmers in Punjab. Ms Bhattal said the Opposition parties were trying to create hurdles in the project.

Mr Singla hoped the average income of Punjab farmers would rise from Rs 20, 000 - Rs 25, 000 per acre to Rs 1 lakh per acre. The Managing Director of Punjab Agro, Mr Himmat Singh, said farmers would get a better price and a ready channel to the market besides technical and financial advice. It would provide logistic support, storage and marketing in both the domestic and export markets.