Over 2700 MoUs worth over Rs 15 lakh crore were inked in just one day in Gujarat as part of the 5th edition of the Vibrant Gujarat Global Investors' Summit on Wednesday. That is a record and has made other states gawk in wonder and envy.
Many have attributed this to Chief Minister Narendra Modi's 'magic.' Well, what exactly is this magic?
Modi has the knack and ability to cut through a maze of red tape and fast-track projects. Gujarat's system of single-window clearance for big ticket projects in a stipulated time frame has been able to attract major industries. And these projects are cleared by the Chief Minister personally.
As Ratan Tata recalled in his speech at the summit: Gujarat government took only three days to assure him land in Sanand to shift the (Nano) plant from Singur.
While other governments like Karnataka and Chattisgarh sent out bland invites when Tata ran into trouble at Singur, Modi went a step further by identifying the land for the projects and clearing the same in three days.
One is reminded of Nara Chandrababu Naidu when he was the 'CEO' of Andhra Pradesh. He had also fast-tracked projects clearing them overnight through telephonic calls or fax messages. That is how he was able to snatch the International School of Business from Mumbai, upsetting Bal Thackeray.
But while Naidu attracted investments to Hyderabad, Modi is able to spread the meal across Gujarat. That is his second strength. Porbandar, Kutch, Junagarh are the new and prosperous regions of the State. A Special Investment Region (SIR) is coming up in Dholera and will house India's first city developed on a public-private partnership model.
The Gujarat Industrial Development Board is working over-time to ready the area for development works. The area is known for issues like water logging and loose soil. And for this the Gujarat government has sought scientific inputs rather than entrusting the work to a disinterested PWD.
Such is the pace of development in these areas that SIR, associated Special Economic Zones and DMIC put together bagged 12 MoUs with an investment commitment worth Rs 1.39 lakh crore and would generate an estimated 129,000 jobs.
Tatas have announced a total investment on ground worth Rs 30,000 crore and would employ 50,000 people in Gujarat and will indirectly employ several more.
States like Karnataka too have plenty of land to offer. And when B S Yeddyurappa took over as Chief Minister of Karnataka, he promised to usher in the Modi model. But instead of assigning land to industrialists, he allotted them to his sons and relatives.
The next big asset is that Modi does not bank on statistics alone. He does not feed investors with numbers that can be either astounding or confounding.
As Anand Mahindra, vice chairman of the Mahindra Group said: "What struck me was when Modi's team made the presentation of the event was they did not quote the usual statistics -- GDP growth and the like. They began with the improvement in the infant mortality rate, girl child education... that's what caught my attention. We will sign about six MoUs of Rs 3,000 crore which will have Rs 11,000 crore multiplier investment and creating 1,00,000 jobs."
In a way, Modi is laying the industrial turf for the future by keeping an educated and vibrant workforce ready for industries that are keen on investing in the State. As he put it in his opening remarks at the summit: "Gujarat offers the best infrastructure. Labour problems are zero and there is an abundance of critical drivers."
Modi is also keen on projecting growth with a human touch. This is why he took pains to point out that his focus would be on "spiritual humanism, Gandhian legacies, tolerance, justice and compassion", which he claimed were the drivers behind his investment efforts.
"This is an attempt to unite all those who are concerned about the well-being of humanity and want to evolve new parameters for human welfare on a sustainable basis," he said. He also took care to mention his commitment to battling the threat of climate change, referring to "my latest book on climate change. Al Gore (former US Vice-President) wrote about the Inconvenient Truth, but I am giving you the solution, Convenient Action," he said.
In a nutshell, Modi is looking at balanced growth and not rapid industrialisation.
Modi is also a well-known planner and an agent of change. As Anil Ambani put it: "The thought that strikes me the most comes from two men who created wealth of a very different kind. The first: the father of our nation, Mahatma Gandhiji. He created for us enormous national wealth of values and principles that have inspired the best of us. Second, my father, a son of India, a son of a school teacher, a son of Gujarat, a son of Saurashtra, and the father of entrepreneurship and capital markets. Now there is this third individual, Narendrabhai Modi, one the greatest change agents for India in last one decade."
Mukesh Ambani backed his brother saying: "Gujarat is shining. The credit goes to the visionary, effective and passionate leadership provided by Narendra Bhai. In Narendra Bhai we have a leader with a grand vision, and determination to translate his vision into reality."
While Anil announced that his group would invest Rs 50,000 crore in Gujarat over the next five-seven years, in gas-based and coal-based power projects in Kutch, Porbandar and Junagarh, Mukesh made no firm commitments. He was keen on putting his money into the education sector.
While Gujarat is attracting investments in crores, States like Kerala feel that they will never emulate the Modi model because it was a 'real estate game' and not industrialisation.
The CPM state secretary triggered a devilish storm in God's Own Country when he compared Kerala's investor-unfriendly approach with that of 'a state' that fast-tracks industrial investment. He made this reference without naming Gujarat at the party-sponsored International Congress on Kerala Studies in Thiruvananthapuram last week, according to The Indian Express. He highlighted the lack of single-window clearance in Kerala and complicated official procedures to get an investment proposals cleared, then referred to a state where entrepreneurs could get clearance within a few days after meeting the Chief Minister.
Vijayan did not name the other state but Achuthanandan had no doubt it was Gujarat. He hit back days later, while inaugurating an IT park near Thrissur. "By making industrial development in Gujarat a model, Kerala cannot offer its soil and nature for real estate business. Despite government efforts to make hundreds of acres of land ready for the IT industry, certain champions of progress insist that they can bring in development by filling mangroves and wetlands. One has to assume that such persons target something other than development. I want to remind them, this land is picturesque Kerala," he said.
Vijayan then came out with a clarification. The state he had showered praise on, he said, was neighbouring Tamil Nadu. He issued a press statement that he was referring to the period when M Karunanidhi was handling the industries department. No communist would dare to extol the state of Gujarat ruled by Narendra Modi, he added.
Little wonder that Gujarat is able to attract big names like Mukesh Ambani, Anil Ambani, Ratan Tata, Anand Mahindra, Adi Godrej, Gautam Adani, Uday Kotak, Chanda Kochar, Hari Bhartia, Ajit Gulabchand, GVK Reddy, Tulsi Tant and AM Naik. Also present were representatives from partner countries Canada and Japan-Canadian High Commissioner Stewart Beck and Japanese Ambassador Hideaki Domichi.
These people go to Kerala and Karnataka too, but on a holiday.
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