Press Note Eng. Dt: 10/01/2017 Vibrant Gujarat
Press Note 10th January, 2017
The stage is all set for the eighth edition of Vibrant Gujarat Summit. During these years the colour and complexion of the event has changed from an investment platform for Gujarat to investment driver for the country on the way of becoming Davos.
The nation is stuck in an economic crisis and has become more acute since the Prime Minister announced demonetisation of Rs 500 and Rs 1000 notes in circulation. On one hand, the nation is still struggling to come to terms with the aftermath of demonitisation and on the other hand BJP government in Gujarat is busy celebrating so called festivals like Vibrant Gujarat summit, spending not lakhs but Crores, collected from people.
Modi who initiated this summit as the Chief Minister of Gujarat in 2003, launched the 2015 edition as the Prime Minister of India. This is for the second time that he is inaugurating vibrant Gujarat as Prime Minister. This clearly shows that despite moving to the centre as the PM he continues to call the shots in Gujarat and this summit by all means is Modi’s affair.
To understand the failure of such highly PR driven initiatives it is important to look at the claims made by the government in 2015 and what materialised for the state. To avoid scrutiny of its claims, the government did not announce details MOUs and investment it was left to the investors. However, the then CM Anandiben Patel had quoted private firms’ claims that 21304 projects would bring investment of 25 trillion because of 2015 summit.
Gujarat Government’s claim of investment through Vibrant Summit is Rs.84.55 lakh crore MOUs signed from 2003 to 2015. But The Real Authentic Industries Commissioner Gujarat Data says Industrial Approvals in Gujarat Period from 01/01/1983 to 31/08/2016 has Progress As on 30/09/2016
TOTAL STATISTICS (IEM + LOP + LOI) is only of 951980 ( RS in crore)
Link: http://ic.gujarat.gov.in/?page_id=3137
Gujarat government MOU data and Industries Commissioner Data has huge difference. MOUs claims Investment close to India’s total GDP size.
Gujarat official GSDP as per the budget documents in 2015-16 was Rs.9,84,971 crore so why this investment of Rs. Rs.84.55 lakh crore MOUs do not reflect in authorized data. Economics says that compare to your investment your annual turnover remains two to four times high per annum. If Rs.84.55 lakh crore was invested in Gujarat why does it not reflect in the real GSDP growth rate. This clearly rubbishes the claim of Gujarat government citing huge investments.
GSDP Growth Rate and Size :
State BJP government makes high claims on the economic growth of the state through investment made in the Vibrant Summit MOUs but as per the official records published in the budget the state has witnessed lowest Gross State Domestic Product(GSDP) rate in the last ten years according to the Statement under Financial Responsibility Act(FRA) published with the last budget. While the same statement predict that the Gujarat’s public debt will cross whopping Rs.2 lakh crore. If Gujarat Government’s claims of investment are true then why is the growth rate going down???
| Year | State GSDP Growth Rate @ current
Prices |
The constant prices estimates
GSDP growth rate |
| 2010-11 | 20.9% | – |
| 2012-13 | 17.6% | 10.8% |
| 2013-14 | 13.3% | 8.3% |
| 2014-15 | 11% | 7.7% |
| 2015-16 | 10% | 6.7% |
Link:- http://financedepartment.gujarat.gov.in/Documents/34%20%20Socio%20Economic%20Review%20(English).pdf
As per the official figures given by the state government the share of the primary and agriculture sector on which more than 50% of the working population remained engaged has gone down.
| Year | Share of Primary Sector in State GSDP | Share of Agriculture Sector in State GSDP |
| 2013-14 | 20.4% | 16.2% |
| 2014-15 | 19.8% | 14.7% |
| As per the budget estimates the public debt in 2016-17 will be Rs. 2,02,978 crore. | ||
FDI in Gujarat
2014-15 and 2015-16 2682 USA $ million only
Total Share in FDI 5.13%
Maharashtra 20.16%, Delhi 29.20%
Link: http://indiabudget.nic.in/es2015-16/echapter-vol2.pdf
Vibrant Gujarat is nothing but a platform for BJP’s corruption and companies have used Vibrant Gujarat as a platform to inflate their share value and attract financial institutions for more funding. Also, there have been cases of land grabbing through such project announcements.
In Power sector alone, Modi government claimed to have attracted investments through 31 MOUs worth Rs. 2,11,895 crore that would generate employment for over 58,000 people! This was announced by the State government in 2009 Vibrant Gujarat Summit. However none of these 31 MOUs have translated anything for the state and people of Gujarat. Rather, these companies have used Vibrant Gujarat as a platform to inflate their share values and attract financial institutions for more funding. Also, there have been cases of land grabbing through such project announcements. Details are annexed as annexure 1.
BJP government has given away precious land worth Rs 144.504 crore to a private company S E Transstadia at a throwaway price flouting all government norms. Details are annexe as annexure 2.
Supreme Court had set aside the order of then Gujarat Revenue Minister Anandiben Patel to allocate land to Indigold. The Court in its judgment held the order illegal and ordered a compensation of Rs 3.15 crore. Gujarat Chief Minister and his ministers are indulging in corruption by giving prime land to industrialists at negligible price in the name of MOU of Vibrant Gujarat, this had been exposed by Supreme Court order. The Public Interest Litigation(PIL) was approved by a bench of SC of Justice Shri HL Gokhale and Justice Shri Chelameswar. The honourable Court has declared the minister’s decision as illegal and has also ordered deposit Rs. 3.15 crore compensation. Details are annexed as annexure 3.
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