Rs.2 trillion investments promised at Gujarat expo – A World Record!!
“It`s stupid if you are not in Gujarat: Ratan Tata“
In his key-note address, ICICI Bank chief K. V. Kamath praised Modi's 'pro-active' role in guiding the state's economy. More like a CEO'. He said, however, that it was necessary to concentrate on the rural areas in augmenting human resources like education and health at the same level as the economy if the country was to achieve balanced growth.
Announcements of big ticket deals were made in rapid succession at the Vibrant Gujarat Global Investors' Summit 2007 by top India Inc honchos, right from Tata group's Ratan Tata to ICICI Bank's KV Kamath, Essar group's Shashi Ruia, A V Birla group's Kumar Mangalam Birla, Adani group's Gautam Adani and Torrent group's Sudhir Mehta
By end of the day one of two-day meet, the state had inked a mind-boggling 104 MoUs worth Rs 2,51,967 crore across sectors like oil and gas, power, chemicals and petrochemicals, ports and SEZs.
Leading the race were the centre pieces of Gujarat's future development — SEZs with investments worth Rs 1,42,685 crore (26 MoUs) followed by power sector with Rs 55,139 crore (11 MoUs), oil and gas with Rs 19,488 crore (19 MoUs), chemicals and petrochemicals with Rs 14,416 crore (26 MoUs), ports with Rs 10,474 crore (10 MoUs), urban development with Rs 6985 crore, railway projects at Rs 400 crore and others at Rs 2380 crore.
· Reliance Industries Ltd chief Mukesh Ambani announced an investment of Rs 67,000 crore in the Jamnagar SEZ.
· Kumaramangalam Birla of AV Birla group said his company would like to invest Rs 200 crore in a Rayon plant in Veraval, Rs 100 crore in a cement plant, Rs 800 crore in Wiscose and Textiles Application Centre and Rs 1,000 in a fibre plant.
· Shashi Ruia of Essar announced an investment of Rs 10,500 crore for the expansion of their Hazira refinery.
· While state-run ONGC announced an investment of Rs 16,000 crore for a petro-complex at Dahej, another PSU Bharat Petroleum Corporation Ltd (BPCL) has decided to invest Rs 1,700 crore for crude terminal and pipeline network.
· The Adani group said it will pump in Rs 25,000 crore in ports and SEZs while Torrent Industries, which supplies power to Ahmedabad, will invest Rs 9,000 crore in a coal-based project at Pipavav.
· Zydus Cadila announced a Rs 5,300 crore expansion plan for other facilities while Dishman Pharma would bring in Rs 2,000 crore in engineering projects.
· The Welspun Group announced an investment of Rs 3,000 crore toward the expansion of its existing facility at Kutch .
Evidently, it was Gujarati pride on its best display when Ambani thundered: "Reliance is a Gujarati company. It is an Indian company and it is a global company. That is how it was conceived by my father Shri Dhirubhai Ambani."
The two day Vibrant Gujarat Global Investors’ Summit has brought promises of investment of over 100 billion US dollars. Announcing this, Chief Minister Narendra Modi said that the investment has brought many new national and global players from different sectors.
The summit third in a row has aroused great interest in captains of industries and as a result the investment promise this time is four times Modi could bring in previous summit in 2005. The state will generate employment for 12 lakh people through 330 projects involving 308 MoUs in the 2007 summit.
Modi said that three distinct trends emerged in the investment pattern of summit 2007 which has laid a strong foundation for a Gujarat that will lead India as its growth engine. The most important is the fact that maximum investment has come in the infrastructure sector.
This investment will become a facilitator for the future investment in the state. The better infrastructural facilities will work as a magnet to attract more money.
The second most important aspect is that majority of the projects are in manufacturing and engineering sector which has great employment generation opportunity.
To enable the people of Gujarat to use these employment opportunities the government has received as many as 15 proposals for human resource development during the summit. Modi said that this includes two marine engineering colleges, interest for investment in more than 100 ITIs.
He said that the summit has succeeded in giving right message to people to have faith in investment in the state.
Maximum number of MoUs in all 66 have been signed in the agro and food processing sector. This involves investment of 11,560 crore with employment to 80,000 people. This is followed by engineering, auto and ceramics sectors where 35 MoUs have been signed to bring in investment of Rs. 12757 crore and jobs to 38490 people.
In terms of investment and employment potential the biggest is the special economic zones. Proposals of investment of Rs. 170688 crore were made which will generate 605640 employment opportunities.