Industrialists laud Gujarat CM; First day shows investment galore

 

Jubilant, Essar, Adani commit investments totaling Rs 22,000 crore

 

AHMEDABAD: Industrialists and who's who of Indian corporate world gathered at the Vibrant Gujarat Summit 2013 in Gandhinagar on Friday, 11th January, 2013. This time, however, every speaker lauded Chief Minister Narendra Modi. In a big departure from the past summits, none of the speakers, barring Mukesh Ambani of RIL and Hari Bhartia of Jubilant Lifesciences, committed investments in the state.

 

The investment sentiment will likely get clear only at the conclusion of the summit. Last time, Gujarat had attracted investment proposals worth Rs 20 lakh crore.

 

Congratulating Narendra Modi on his hat-trick in Gujarat Assembly elections, Godrej Group Chairman and CII President Adi Godrej said it was the result of continuing policies and commendable leadership. He appreciated the stress on Knowledge that Vibrant Summit will focus on this time and expressed hope that Gujarat and India will emerge as Knowledge hubs of the world.

 

Speaking at the inauguration function of the Vibrant Gujarat summit 2013, US-India Business Council (USIBC) President Ron Summers said: "How many countries or states can boast of double digit growth in the depressed global environment." But Gujarat has provided growth by policies and able leadership, he added. He ended his speech with slogan: “Jai Hind" [in adverse ‘Jai Gujarat’].

 

Anil Dhirubhai Ambani Group Chairman Anil Ambani hailed Chief Minister Narendra Modi as ‘the King among Kings’ and requested the audience for a standing ovation for chief minister Narendra Modi. The audience readily relented as Ambani went on to say ‘Modi dreams with his eyes open to ground realities’ and is a big magnet for attracting investments to Gujarat.

 

Lauding Gujarati entrepreneurship, Mahindra and Mahindra Group Chairman Anand Mahindra said: “I don't know what's in the soil of Gujarat that makes such successful entrepreneurs." Breaking his speech into Hindi, he said: Gujaratis are free from fear of failure and perhaps there lies their success in business ventures." He ended his speech on a high regard for Gujarat:

 

“We will soon have a Gujarat model of growth in China."

 

RIL Chairman Mukesh Ambani said Modi has determination to transform dreams into reality. In a lighter vein, he said: "I have attended all the summits held so far, so it 100 per cent presence from me." He further said RIL is first a Gujarati company, then an Indian company and later a global company. He committed huge investment in mobile telephony in Gujarat and said RIL will invest Rs 1 lakh crore in Gujarat over the next few years.

 

Shashi Ruia of Essar Group committed investments worth Rs 15,000 cr.  Speaking at the Vibrant Gujarat Summit 2013, he said Rs 10,000 crore will be invested in the ports sector while Rs 4,000 crore in bulk water supply. The rest of the investment will be in existing projects of the company in Gujarat, he said. Shashi Ruia said Gujarat has proven that good governance can exist with good politics.

 

Speaking on the occasion, Gautam Adani of Adani Group committed investment worth Rs 5,000 crore. The investments would be spread across its existing business, particularly in ports, and new ventures.

 

RC Bhargav, Chairman Maruti Udyog Ltd, said: "Gujarat is our second home. We thought Gujarat was the best state to invest in but when we went to Gandhinagar, we saw reality was much better that what we had heard." Maruti decided to invest in Gujarat after labour unrest at its Manesar plant in Haryana. The company is setting up full fledged plant at Bahucharaji, near Mehsana, in North Gujarat at cost of Rs 18,000 crore. The initial investment will be Rs 4,000 crore, the work on which has already started. The company plans to produce 20 lakh cars from the plant, once the plant is fully operational.

 

Hari Bhartia of Jubilant Lifesciences committed investments worth Rs 1500 crore over the next two years. This will be over and above Rs 2000 crore so far, he said during his speech at the inaugural function of Vibrant Summit 2013.

 

In total, Ports and tourism sectors together bagged investments of around Rs 1 lakh crore on the first day of the Vibrant Gujarat 2013 summit that saw Chief Minister Narendra Modi laying emphasis on small & medium industries sector. Water management attracted Rs 61,000-crore projects while the petroleum, chemicals and petrochemicals investment region at Dahej saw 30 companies committing Rs 30,000 crore.

 

The textile sector, which employs most people after agriculture, attracted Rs 23,000-crore proposals on the first day. Focussing on MSMEs, the event saw a congregation of 6,000 MSMEs on Saturday. It is learnt that 14,000 MoUs were signed in that sector alone. Modi who has drawn flak from critics for inflated investment figures, tried to prove them wrong by releasing a book on 60 successful projects that were realised through the summits.

 

"There is no need to talk about investments as we have moved beyond the number game. There is a stress on knowledge sharing and partnerships," said an industrialist. The state might not announce investment figures like it did in the past, but instead talk of strategic alliances. Close to 18,000 MoUs are expected over the next two days.

 

Modi stressed that the summit should be seen as a 'lighthouse for sustainability' and said there is a need to give confidence to the sluggish global economy. Gujarat that has come to be known as an industry-friendly state since the relocation of Tata Motors Nano plant in 2008, got a thumbs up from MSIL Chief RC Bhargava.

 

The event that drew investments in excess of Rs 20,000 crore in 2011 despite cascading effects of global slowdown, is being positioned as a knowledge event. Bureaucrats have emphasised that the focus in not on investments and that they are keen to strike strategic alliances with global partners.

 

The Vibrant Gujarat summit is the biggest business show in the country. This year, nearly 1,800 foreign delegates from 105 countries are attending the three-day show at Mahatma Mandir in Gandhinagar. Previous editions of the summit are remembered for big investments committed by companies for the state and the credit the Modi Government derived from the numbers.