Indian Economy News

At Vibrant Gujarat summit, Narendra Modi promises favourable policy environment

  • Livemint" target="_blank">Livemint
  • January 12, 2015

Gandhinagar: Prime Minister Narendra Modi on Sunday said his government was committed to creating a policy environment that is “predictable, transparent and fair”, aimed at reviving confidence of foreign investors.

Speaking at the seventh edition of Vibrant Gujarat 2015, the state government’s biennial business jamboree, Modi claimed that in seven months in power at the Centre, his government had changed the atmosphere of despair and uncertainty which prevailed in the country.

Vibrant Gujarat was a brainchild of Modi, when he was the chief minister of Gujarat. The first edition of the summit was held in 2003, which attempted to rekindle investor confidence in a state wracked by a devastating earthquake in 2001 and a communal conflagration in 2002.

“This event is perhaps the biggest gathering on earth where a budding entrepreneur has the opportunity to see the president of the World Bank; where, a young farmer, dreaming to set up a food processing unit, can listen to the views of the UN secretary general on issues like food security,” said Modi while inaugurating the summit on Sunday.

Memoranda of understanding (MoU) to invest an aggregate Rs.42 trillion were signed in the summits up to 2011, but the conversion rate of MoUs to actual investment remains under 10%.

The state government discontinued declaring the investment amount from the last summit, focusing only on the MoUs.

This year, partner countries of the three-day summit include the US, Australia, Canada, the UK, the Netherlands, Japan, South Africa and Singapore, with over 250 business leaders, investors, management experts, dignitaries and delegates from 111 countries attending it.

Modi said his government, from its early days, has been liberalizing sectors such as railways, construction, defence and insurance. “We’re trying to complete the circle of economic reforms speedily,” he said. The government’s flagship Make in India programme, he said, is aimed at making the country a global manufacturing hub.

“We are not merely making commitments and announcements,” Modi told business and political leaders. “We have been backing them up with concrete action.”

A global trade show is under way as part of the event, showcasing products, services and technologies from around the world.

Speaking at the summit, chief minister Anandiben Patel said her government was committed to building world-class infrastructure in Gujarat.

World Bank president Jim Yong Kim said, “We are the first human generation, which can eliminate extreme poverty and India should be the leader in eliminating poverty.” By 2030, World Bank aims to eradicate extreme poverty, by which it means daily incomes less than $3, comprising 3% of the world population. He estimated India’s economy to grow 6.6% in 2015, adding that he is looking forward to Vibrant India along with Vibrant Gujarat.

Congratulating Gujarat for its initiatives in harnessing renewable energy, the World Bank president called on India to play a greater role at the international level.

US secretary of state John Kerry too spoke in favour of utilizing renewable energy. “Now, the energy market is offering an opportunity of $6 trillion... This is the greatest market known to humans. If we utilize this opportunity, we can realize Make In India initiative for the planet as a whole,” he said.

Investment plans

Top business houses announced their investment plans at the summit, with Reliance Industries Ltd chairman Mukesh Ambani saying his company will invest Rs.1 trillion in its various projects in Gujarat in the next 12-18 months. India’s top industrialist also said in his speech that the prime minister’s Make in India and Digital India have energized the country.

Kumar Mangalam Birla, chairman of the Aditya Birla group, announced plans to invest Rs.20,000 crore in expanding various projects in the state. The Birla group has cement, chemicals and textile units across Gujarat.

“Gujarat remains a preferred state for investment for Birla group ever since my father made first investment in the state in the 60s in the name of Indian Rayon,” Birla told the gathering.

Hong Kong-based CLP Holdings Ltd signed an agreement with the Gujarat government to invest $2 billion to set up a 2,000 MW power plant in Bharuch district. Adani Power Ltd and the US-based solar energy firm SunEdison Inc. signed an agreement to jointly build India’s largest and vertically integrated solar photovoltaic manufacturing plant in Mundra, Kutch at an investment of $4 billion. Adani also tied up with Australia’s Woodside Energy on sourcing of natural gas.

Welspun Renewables Energy Ltd said it will invest Rs.8,300 crore for a 500 MW wind farm and a 600MW solar power facility in Gujarat. The Videocon group said it will set up a fibre-glass plant with a capacity of 60,000 tonne per annum in Bharuch, with an estimated investment of about Rs.2,000 crore. It has signed an MoU with the state government in this regard. Pune-based Suzlon Group said it aims to invest Rs.24,000 crore over the next five years on energy projects, to generate 3,000 MW in Gujarat. This will also mark Suzlon’s foray into solar energy.

Essar Oil Ltd chairman Prashant Ruia said his company aims to invest Rs.6,000 crore for setting up a petcoke plant at its Vadinar refinery near Jamnagar.

He was speaking on the sidelines of the Global CEO Conclave, a part of the summit.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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