Even as the global economy melts, Gujarat Chief Minister Narendra Modi is warming up to hosting the Vibrant Gujarat Global Investors Summit 2009 on January 11-12. With Japan as the state’s partner, Modi is confident he’ll be able to get investors from both inside and outside the country to invest in the state. Excerpts from an interview with Maulik Pathak where Modi says ‘mass production’ and ‘production for the masses’ are the key to Gujarat’s future:
The last Vibrant Gujarat focused on SEZs and port-led development. What’s the focus this time around?
The focus will be on small and medium scale enterprises (SMEs). I want to network SMEs across all areas of Gujarat and help create a better environment for them to perform, to upgrade technology, to market themselves. There will also be an increased focus on alternate energy sources including solar energy at this summit.
What is your USP to attract investors in a slowdown scenario?
The impact of the US slowdown has certainly affected us and, apart from other issues, we need to ensure ‘dirty money’ does not use this opportunity to seep into our economy. Having said that, a slowdown does not mean that industrialists will down the shutters. They will, in turn, look for cost-effective methods to grow.
If there is a slowdown in diamonds, one can do value addition in gems and jewellery. Cost-effective production is the state’s USP. Mass production and production for the masses is my goal.
What will Japan highlight at the Summit?
Japan has been surveying the state for 2-3 years and that’s why they agreed to partner Vibrant Gujarat. Innovation is the key for Japan. Japan is interested in other parts of Gujarat, apart from just the Delhi Mumbai Industrial Corridor (DMIC).
Other countries like Italy, Singapore, South Korea and Taiwan are also going to participate.
What clusters are you looking at developing?
We’re looking at cluster development projects for foundry, pharmaceuticals, ceramics, textile, readymade garments and auto components. We have identified locations in different parts of Gujarat for each sector. We plan to integrate ITIs with these parks to ensure the right talent pool is available to industrial units.
Health tourism is another area that is high on our agenda. We are adding new hospitals and more beds all across the state. Besides, the state has earmarked Rs 1,000 crore for the expansion of the Ahmedabad Civil Hospital.
We have also started a host of new universities in a very short span including a petroleum university, a law university and even a Sanskrit one.
Do the MoUs announced in such events translate into actual investment?
The question of MoUs not being translated to investments on the ground should be posed to companies since it is they, not the government, which are planning the investments. But, the realisation of MoUs at the Vibrant Summit is 80 per cent. This is much higher compared to the national average of 12 per cent. One should not keep production as a benchmark for realisation of MoUs because completing a project takes time.
How will you ensure Singur is not repeated in Gujarat?
Gujarat is the first state to implement the SEZ Act and even the centre is now thinking of taking a cue from us. The acquisition of land is policy-driven. The state is not involved in land acquisition. We have given wasteland for industrial purposes, so the question of issues related to land acquisition does not arise in our case.
Will your new industrial policy give more incentives in special cases as was done for the Nano?
There are many changes in the industrial policy and an announcement in this regard will be made at the right time. Gujarat is the best place to invest and this should be reason enough for anyone to come and invest here. As far as the incentives are concerned, any company can avail benefits falling within the policy guidelines.
How is the state’s fiscal health?
From a revenue deficit of Rs 6,700 crore in 2003, the state today has a surplus of Rs 2,500 crore. And all this has been achieved without imposing any new taxes, by strictly maintaining financial discipline and proper planning. I want the state, which enters into its Golden Jubilee in 2010, to do so in a jubilant way.
Why are listed PSUs being asked to part with a considerable portion of their profits under the pretext of corporate social responsibility?
The decision to part with a portion of their profits is by the companies and not by me. The companies should spend money for the public. I think the question should be asked to them: why didn’t they contribute for the state’s welfare earlier?
