JobberClub » Vibrant Gujarat Summit

Proposed 48 lakh jobs, but created only 2.7 lakh by Vibrant Gujarat MoUs

admin — Wed, 12 Jan 2011 05:44:07 +0000

MoUs signed in the four summits so far envisaged 47.95 lakh jobs, but official figures show only 2.7 lakh people have been employed in 8 years

There shouldn’t have been any unemployment in Gujarat if all the jobs proposed in the memoranda of understanding (MoUs) signed during vibrant Gujarat summits were actually created.
A close look at government figures reveal that MoUs failed to generate the envisaged jobs as only 2.7 lakh people in the state landed jobs since 2003 when the first summit was hosted as against the proposed 47,95,095 employment opportunities.

The poor conversion rate of MoUs and hence generation of employment is reflected in the figures available with Directorate of Employment and Training at Gandhinagar. As many as 17,19,099 people were employed in the private and public sectors in 1995. The figure went up to 19,40,002, including 2.87 lakh women, in 2010. This translates into a rise of 220,903 jobs.

Incidentally, in 2003 when the first summit was organised, 16,30,896 people were in jobs in private and public sectors. By 2009 the figure went up to 19,04,000. “It means that only 2,73,104 jobs have been added since the first summit and all these jobs cannot be credited to the four summits,” said an official at the Directorate of Employment and Training.

“About 50,000 people were absorbed in the private sector in the last one year. Most of these employment opportunities were in service industry like mobile telephony and banking. Big industrial houses have failed to generate significant employment for the people in the state.

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Vibrant Gujarat 2009 & List of MoUs

admin — Tue, 20 Jan 2009 03:24:18 +0000

I was amongst the fortunate 5000 people to witness one of the most important event in history of India. All roads leading to the venue were jam packed and it took 75 minutes to cover a distance of 6 kms which on an average busy day would take about 10 minutes. Senior IAS officers, MLAs and MPs were seen standing (the VVVIP section saw 3-4 senior industrialists sharing the Sofa meant for 2) in the crowd for 3 to 4 hours and thousands were denied entry in the Inauguration hall.

Forget Sabeer Bhatia. Forget the 750,000 crores worth of investment that were promised on the first day or the total of 1,200,000 crores of MOUs. You needed to feel the euphoria in the atmosphere. Imagine a MP of Britain (country which denied visa to Mody) or Canada praising the state and the CM as if they were praising their own hero. Imagine Gardiner, the British MP chanting first few lines of Vande Matram. Imagine the doyens of Indian Industry who qued up to announce thousands of crores worth of investment (repeatedly the likes of Birlas, Ruias, Dhoots, Adanis etc. were told to limit their 2 minute speeches to announcements only but they could not resist praising the state and the CM). Imagine Giants like Mittal and Ambani wishing openly that Modi becomes the next leader of India.

Question is – Will these MOUs result in actual projects? If yes, How much of it will actually materialize into brick and mortar?

Firstly we have to understand that the MOUs are signed by individuals and corporate. Though there was good amount of inducement, all MOUs were offered by public to Govt. of Gujarat. The no. of MOUs are huge (about 8500) indicating massive participation by public at large. They are in various fields, at various geographical locations and their structure is different. Many of the MOUs may turn out to be ‘ wishful thinking’ or an attempt to hog limelight. Many Entrepreneurs may be looking at making a quick buck or having an eye on Government ‘support’ in terms of cheaper land allotment or other favors.

However a sizeable of these intents are of serious nature. And law of probability will apply to them. Even if a conservative 20% of these intents take off and a 10% of them result in actual projects, we are talking about investment of 120 thousand crores. In 2007, according to K. V. Kamath’s estimate, the total investment pipeline of India stood at about 250 thousand crores. We are talking about more than 45% of that.

It will be an all round investment unlike in other states. A major portion has gone into infrastructure which will have a long term effect on the state economy. The major players on the DMIC route are yet to announce their plans and rumors are that these announcements are going to be huge.

History will record the Vibrant Gujarat Investors summit 2009 as a beginning of a new era not only in Gujarat but also India.
By Nayan

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444 Mous pledged worth Rs 7,48,970 crore on power, economic zones, tourism, water management among others on Day 1!

admin — Tue, 13 Jan 2009 15:01:57 +0000

444 Mous pledged worth Rs 7,48,970 crore on power, economic zones, tourism, water management among others.
Leaders in Vibrant Gujarat Summit together, they represent 91 listed companies and a market cap of Rs 7.85 lakh crore

Industry captains on Modi and Gujarat

KV Kamath, former chairman, ICICI & CII president: “Growth is not an accident. It is made to happen. The chief minister has made it happen.”

Reliance Industries chairman Mukesh Ambani: “In Modi we have a leader with great vision. He has amazing clarity and a determination to succeed. This quality will help Gujarat have the place of pride not only in India but also the world.

Ratan Tata chairman Tata Group: “In 2007, I had said if you are not in Gujarat you are stupid. I am very proud that I followed my own advice. The state’s ability to execute quickly is commendable.”
Investment: Nano Project of Rs 21,000 crore+
Geothermal power plant and a solar power plant of 5 MW each at a suitable location in Gujarat

Dr AK Balyan, Director HR, ONGC
Rs 17,500 crore Dahej SEZ and Rs 12,500 crore for wind power plant.

Prasoon Mukherjee Chairman, Universal Success Enterprise Ltd
Universal Success Enterprise committed the maximum investment of Rs 87,000 crore
Rs 87,000 crore in the next 10 years to develop 10,000 MW thermal power plant, 2 ports and one international standard SEZ, in association with Salim Group

L&T CMD AM Naik
Rs 25,000 crore in heavy machinery and manufacturing plants.

N Vittal, former chief vigilance commissioner: “Gujarat has the resonance to respond to the challenges.”

Hindustan Construction Company Ltd: Rs 40,000 crore in tourism and hospitality, water management and water infrastructure.( for waterfront city)

State Bank of India chairman OP Bhatt: Rs 30,000 crore private equity fund for SMEs and setting up 45 branches in the state.

Adani Group chairman Gautam Adani: Rs.27,000 crore, to develop port and SEZs, power plant, power transmission network and education.

Aditya Birla group chairman Kumarmangalam Birla: Rs 20,000 crore for fibre and telephony in the next three years.

Cellular Operators Association of India: Rs 20,000 crore to be invested by the cellular industry as a whole.

Suzlon: Rs 9,000 crore hi-tech SEZ for solar power.

Sterling Biotech: Rs 6,000 crore in SEZ, power, university and an airport.

Welspun:Rs 4,500 crore for expansion of the current facilities.

Videocon Industries MD RN Dhoot: Rs 4,000 crore for thermal power plant

Essar Group chairman Shashi Ruia::
ONGC director AK Balyan
Hindustan Construction Co chairman and MD Ajit Gulabchand: Hindustan Construction Company will invest Rs 40,000 crore for developing a township at Dholera in Gujarat.

IL&FS chairman Ravi Parthasarthy
Deccan Airways chairman Capt Gopinath: would bring in Rs 3,000 crore by making Ahmedabad an air cargo logistics hub.
Welspun group MD BK Goenka
Bharat Forge CMD BN Kalyani: Bharat Forge would enter Gujarat for the first time with an investment of Rs 7,000 crore.

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Vibrant Gujarat Summit Record 4,000 MoUs to be signed!

admin — Fri, 02 Jan 2009 14:48:29 +0000

THE Vibrant Gujarat Summit, which will put special focus on the micro, small and medium enterprises (MSMEs) of the state, will see a record 4,000 MoUs signed during the event. The MoUs to be signed under the MSME category alone promise to generate close to 9 lakh direct and indirect jobs. Thus, employment-generati on target this time will be much higher than 13 lakh jobs set during the last summit.

The number of MoUs is much higher than the 363 MoUs signed during the last summit held in 2007. This is mainly because the MSME segment alone will see more than 3,000 MoUs. MSMEs will promise to generate 2 lakh direct employment.

A top-level meeting was held on Wednesday between state government and industry representatives, and it was learnt that the state has received 4,000 investment proposals. “Although recession has gripped the world economy, Vibrant Gujarat event will be a grand success. We have finalised 4,000 proposals for MoUs and new proposals are still pouring in. However, investment is secondary for us this time because the state is concentrating on primarily employment generation,” sources told ET.

According to industrial sources, MoUs up to Rs 10 crore will be categorised under the MSME category while MoUs worth more than Rs 10 crore will be put under the respective sector heads. Industry associations have received hundreds of proposals in the last 20 days.

The Federation of Industries Associations (FIA) and Gujarat Chamber of Commerce & Industry (GCCI) are looking after the MSME participation in the high-profile summit. “This is the first Vibrant Gujarat event in which MSMEs are participating. The state has a large number of MSMEs and we are receiving good response from them. Till now, close to 3,000 MSME units have decided to sign MoUs at the summit. More than 4,000 MoUs will be signed from MSME and large industries,” FIA president Kirit Mehta told ET. However, he added that still many companies were finalising their investment proposals and the numbers might increase.

At the 2007 event, total 363 MoUs were signed which promised to create more than 13 lakh jobs. “However, this time the scenario will change as only MSMEs will sign around 3,000 MoUs with promise to generate 2 lakh direct and 5-7 lakh indirect employment,” a top official of GCCI added.

A special MSME exhibition will attract visitors. MSMEs have been given 99 stalls for the exhibition. However, players are enthusiastic and the stalls have been over-booked. “MSME companies are willing to book space in the summit and we are finding it difficult to provide stalls to everyone,” Mr Mehta added.

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