Late Extra: Invest now, repent at leisure

The Chief Minister of India's most populous state, Uttar Pradesh, returned to the capital, Lucknow, last Thursday after a whirlwind tour of the United States and Europe.

While on the tour, the Uttar Pradesh Chief Minister, Mayawati, held a number of meetings with potential investors inviting them to set up base in her state.

From all accounts and Mayawati herself, she assured investors that Uttar Pradesh was the state which plans to modernise and upgrade infrastructure, which will help investors reap benefits in the foreseeable future.

The only catch was that her state was passing through a financial crunch presently but if her countrymen, now non-resident, could chip in with some funds - hers and their dreams could be realised.

Political instability, said Maya-wati, was just rumour being churned out by her and her state's detractors. God is in heaven, she is in the chair and all's well with Uttar Pradesh. So, she said, please don't hesitate. If you miss the Uttar Pradesh bound 'Investment Bus' now, you may regret your tardiness later.

Future tense

I cannot help but endorse her assessment of the state of affairs in Uttar Pradesh and the vast spectrum of opportunities it offers.

The only trouble is that her invitation to invest and the assurances given are in the 'future tense'. And that too if foreign funds are forthcoming.

Yes, Chief Minister Mayawati is right. She did not and is not asking for charity. She is not asking the NRIs, especially those from Uttar Pradesh, to part with their life savings. It is just a matter of a fistful of dollars.

It does not matter if the greenback is presently weak. She believes in what the President of the United States forecast - the dollar will strengthen. Look to the future. Imagine the huge market the over-populated state has to offer - and if matters go right this population base is bound to double in the years ahead.

As I sat down to write this column, I prayed. I did not pray for dollars or euros; my simple supplication to whoever is in charge of the electricity department was that they would not cut off the power supply. At least until I finish writing.

It is really hot in Lucknow. But so are most parts of India. Electricity supply curtailment is the norm, so Uttar Pradesh is not an exception.

The problem is that without power (I am not talking of power as in politics) it is not just the common man who is sweating but industrial production has come to a halt.

Last week there was such a severe shortage of electricity in Uttar Pradesh that the state's supposed industrial hub, Kanpur, lost billions of rupees in lost production. One estimate was that in a single day the industrial units in Kanpur were losing as much as Rs30 million.

That figure of losses is set to increase, as a hefty hike in power tariff will come into force from June 20. There is a severe shortage of water but the weather forecasts claim that the monsoon has arrived and soon that problem will be solved.

These, if one is to believe Chief Minister Mayawati, are surmountable problems and very, very temporary. Think of the future.

But despite her assurances, there were still some NRIs in the audience who had the audacity to complain to Chief Minister Mayawati about the miles and miles of red tape investors have to negotiate.

And then some bold souls risked her wrath and mentioned the unmentionable word - corruption. They should not have been so timid.

Chief Minister Mayawati is a gracious lady. She admitted red tape existed but by the time she completes her tenure, it will be wound up and dumped into Lucknow's famous river, the Gomati. And as for corruption, she said she would deal with that personally!

Mayawati is certainly on the ball. She asked the potential investors one simple question. Why has the Maruti IPO been oversubscribed? Was that not a vote of confidence in favour of India and its industries? The point was well made.

Doubting Thomases among the NRIs Chief Minister Mayawati met can either take up her offer at face value or jump into the Potomac, the Thames, or the river Seine, whichever is convenient. I will in the meanwhile continue to wait on the banks of the river Gomati for the 'Promised Day' as assured by Mayawati.

The author is India-based journalist.