Gujarat tries to avoid repeat of global investors' summit of 2005

Even as Gujarat gets ready to host the Gujarat global investors summit on January 12 and January 13 of 2007, it is tight-lipped about the outcome of the high-profile Global investors' summit of 2005.

Of the 226 MoUs signed last year, totalling a proposed investment of Rs 1,06,160 crore, hardly Rs 10,376.46 crore worth of projects were commissioned. This translates into a dismal 9.78 per cent execution.

Of the total Rs 1,06,160 crore of project proposals received across various sectors, the Industries Commissionerate Government of Gujarat has confirmed that 49 projects equalling a proposed investment of Rs 16,686 crore were dropped or were 'in abeyance'.

As of May 2006, 44 projects worth Rs 36,455.55 crore had issues awaiting clearance and following that an undisclosed number of them have moved out of the reckoning.

The government expects a huge turnout for the summit which has been organised right after the successful Vibrant Gujarat IT summit which saw the government sign MoUs worth Rs 11,067 crore with corporates from the ITTeSPO/KPO sector.

While the government is striving to make Gujarat an IT hub, it is worth noting that last year the IT sector had about 17 takers in the summit with a proposed investment of Rs 287.76 crore as opposed to the massive investment for the sector this year. "Of the 17-odd proposals received for IT, a total of Rs 50 crore worth of projects were implemented, " said IAS officer Rajkumar, who is the nodal officer of IT for Vibrant Gujarat.

With the number of dropped proposals far outnumbering the ones that actually got commissioned, the government has made its intentions of screen testing applicants this year.

"Last year, we signed a huge number of MoUs without much of a background check. This year we have invested a lot of time in our ground work testing of proposals. We are looking into factors like the company's background, its financial assets, financial backers and many other factors," said a senior official in the government.

While the reasons for the defunct projects vary from company to company, the official said it was a mix of both internal problems from the proposing company as well as the non-availability of clearance from the government.

The official also added that the chief minister was intent on a monthly review of their progress so that the success rate of commissioned projects will be higher this year.

Like last year, this year too the government plans to hold seminars and exhibitions on its focus sectors - power, oil and gas, chemicals and petrochemicals, SEZ and port-led development, agro and food processing, engineering, auto and chemicals, biotechnology, textile and apparel, gems and jewellery, and pharmaceuticals.