• Gujarat...Wake Up to Reality! Reportedly, in 2003-04 the Government of Gujarat (GOG), public and private sectors joined hands at `Vibrant Gujarat’ to ostensibly promote investments in the State. Apparently claims of MOUs worth Rs 66,000 crore at the investors’ summit did not materialize. In 2004-05 the magic figure was supposedly Rs 1,00,000 crore. FDIs in search of local markets through MOUs are important only if converted into actual investments and projects. Prophetic words those that could not have been lost on industrialists lining up with their respective agendas on investment or earning potentials. But then with Gujarat receiving an IT- Notice in 2011 seeking details on `amount of committed investment’ and `actual investment’ those words have come home to roost. At the `Vibrant Gujarat Global Investors’ Summit 2011’ reportedly 7,936 MOUs of Rs 20.83 lakh crore were signed. Adding to its woes a recent CAG review on accounts of the States is an eye-opener when it comes to Gujarat, the latter’s high claims notwithstanding. Allegedly there are Rs 16,706.99 crore worth of financial and land allotment irregularities with resultant negative impact on delivery on economic and development fronts creating bottlenecks that the Congress in Gujarat is also questioning the government on. And thereby hangs a tale going back in time to the Gujarat riots in 2002 that brought the State to a standstill for almost a year, with its image taking a beating worldwide. Enduring long curfews and amid heartrending scenes of destruction in normal life and commerce of the State, it called for some action to bring Gujarat back on its feet by converting a crisis into an opportunity for the betterment of all our tomorrows. This was to be achieved by giving back to the community that nurtured the business, with improvement in the bottom-line for all Gujaratis. Based on this goal, the original proposal was submitted in early 2003 to corporate / industrial players like Adani, Nirma, etc., which found its way to the CM only to be usurped and morph into `Vibrant Gujarat’ soon after. Years later we are left with the spectacle of wondering just where that improved bottom-line really is. Did it happen? Not really. But that was then and this is now. Read on. There were investments between 2003-2012 of Rs 13.4 lakh crore, 70 per cent of which were in six districts: Kutch, Jamnagar, Ahmedabad, Bharuch, Surat, Bhavnagar as per an ASSOCHAM study in 2011. While the GOG claims to have turned sick PSUs around, according to CAG State PSUs incurred losses of Rs 4,216.53 crore. There were unproductive investments of Rs 300.98 crore showing lack of proper management. Aggregate accumulated profits of all 60 PSUs was Rs 169.34 crore as per the latest finalized accounts as on March 31, 2011. The list of loss-making companies includes: Gujarat State Road Transport Corporation (Rs 159.74 crore); Gujarat State Finance Corporation (Rs 156.91 crore); Alcock Ashdown Ltd (Rs 131.44 crore). State-owned ship-building company, Alcock Ashdown (Gujarat) Ltd was apparently exposed to losses worth Rs 96.42 crore by imprudent acceptance of a contract. Gujarat State Electricity Corp. Ltd., Incurred avoidable expenditure of Rs 9.95 crore due to incorrect selection of a firm and non-commissioning of ash collection system. The State Petroleum Corporation suffered losses for favors to the Adani Group (known to be close to the CM for obvious reasons – Adanis took the original proposal handed to them to the CM before its final morphed avatar of `Vibrant Gujarat’). Shaktisinh Gohil, leader of opposition, Gujarat, ended up being suspended from the Assembly for the entire budget session over remarks on alleged nexus between the Modi government and the Adani Group. According to Gohil, reportedly ``Modi and Adani have looted the State. Adani is selling land given to them for Re 1 for Rs 15,000 and Modi is travelling in Adani’s luxury plane.’’ Meanwhile, the Congress in Gujarat claims that the government evaded discussion of the CAG report by tabling it on the Assembly session’s last day while, expectedly, the BJP’s standard response was that the report does not name Modi. Gujarat PCC chief, Arjun Modhwadia, even asked for a debate which was refused by the GOG. As for the Congress at the centre, it is also determined to expose the truth on claims made by the GOG on human development indices, growth and even inflow of FDI in the State. The new game plan of the Congress in Gujarat saw Gohil taking the government on by pointing out CAG’s report that criticized the GOG for bad management and corruption in internal security. Congress has also taken up alleged irregularities in allotment of land, questioning the Modi government on alleged financial irregularities as well. And then we have the spectacle of Modi meeting the PM and submitting a memo with a request for withdrawal of I-T notice issued to Gujarat for MOUs signed during the `Vibrant Gujarat Global Investors’ Summit 2011’. Reportedly, the I-T department had sought details of MOUs signed by top investor private parties with the Gujarat government on the `amounts committed’ and `actual investments’. Shades of the same queries reportedly raised way back in 2004-2005 as indicated above. Surprisingly, it was reported that the PM agreed with Modi and said he would look into the issue. According to Modi, other States also organize investment summits but haven’t received any such I-T Notice, and it will restrict investments to the State. With all these scenes playing out, one can’t help but feel a sense of déjà vu. Not only on `MOUs signed’ vs `actual investments’ in the State. But also how when Modi first came to power, the Rajiv Gandhi Foundation gave the State an award, the Planning Commission gave the State enhanced funds based on the MOUs signed (that may or may not fructify later), and now the PM possibly succeeding in getting the I-T Notice to the State withdrawn. This ambivalence has cost the people of the State who saw no benefits coming their way through the much-hyped `Vibrant Gujarat Global Investors’ Summit’ held every alternate year now, that only enhances the bottom-line of a select few industrialists who have kept this myth going long past its sell-by date due to perceived vested interests. Piling on insult to injury for a people who have endured so much is not what governance is all about. Nonetheless, at this juncture, one can find solace in William Faulkner’s words quoted way back in 2005, `Man will not merely endure, he will prevail … because he has a soul, a spirit capable of compassion, sacrifice and endurance.’ Amen! In conclusion, while it is generally known that this idea and concept of `inclusive development’ for the common good has been replicated by some other States, media groups, associations, etc., aiming to benefit people, improve image and enhance inclusive growth; when it comes to Gujarat it’s time to show some of the high rollers up for what they are. But ultimately will the people of Gujarat wake up to reality and question the State government’s intentions toward their welfare, peace and prosperity leading to an improved quality of life? Or will they be aware enough to show their disapproval at the ballot box in the next assembly elections due later this year? And must some of our newly minted dollar billionaires, be forever be on a roll at everyone else’s expense with not a care or a worry in the world about `all stakeholders’? Not likely, one would hope. And now for some action and movement on all these fronts, as its time has come!
Posted on: Tue, 04 Feb 2014 03:59:24 +0000