Skip to main content

How Modi behaved 'adversely' towards Gujarat PSU turnaround man

GSFC, Vadodara
By Our Representative
Despite triggering a major turnaround of the top state public sector undertaking, Gujarat State Fertilizers and Chemicals (GSFC), during his stint as GSFC managing-director during 2003-06, ex-IAS bureaucrat Alexander K Luke was given “adverse remarks” in his Annual Confidential Report (ACR), which was written by his minister, Saurabh Patel (energy and petrochemicals), and approved by chief minister Narendra Modi for two years, 2004-05 and 2005-06, when he was with GSFC.
Revealing this in his latest book, “Passports of Gujarat: Hazardous Journeys”, Luke says that the reason for the two adverse CSRs he was given was “lack of respect for the elected representatives of the people and refusal to follow government instructions.”
Giving a glimpse of the turnaround to which he was instrumental, Luke says, the GSFC’s three years’ loss up to 2003 was Rs 680 crore. After he joined in, in 2003-04 the PSU made a profit of Rs 42 crore, followed by Rs 252 crore in 2004-05, and Rs 437 crore in 2005-2006.
The share price of GSFC was Rs 14 in April 2003, which went up to Rs 251 in May 2006 (14 times), as against the peers like Tata Chemicals, whose share price increased from Rs 68 to Rs 275 (four times), Coromandel from Rs 62 to Rs 114 (two times), and of RCF, a Central Government PSU, from Rs 22 to Rs 72, (three times).
Interestingly, in June 2006, during Modi’s visit to the GSFC to inaugurate a new plant, Luke suggests, things had already become abundantly clear” The chief minister described the turnaround he had triggered as “a third model”, without once mentioning him, “except light-heartedly” asking him to “pay back to the state government the financial help given to the PSU.”
Luke comments, listening to Modi, “one would have concluded the turnaround was an act of God or the result of the lavish financial help, close monitoring and guidance from the state government”.
Worse, during the function, the chief minister did not like Luke being presenting an identical memento which was given to Modi by the GSFC union leader for the turnaround. Even before the union leader could hand it over to him, he saw the chief minister angrily get up and leave the stage.
“It was curious behaviour from a leader who has himself been the recipient of such adulation from the public, adulation which he has done nothing to restrain. This was sometime in June 2006, four months before my departure”, comments Luke.
The adverse ACRs, which triggered Luke’s resignation from the IAS in November 2006, two years ahead of his retirement, came, suspects the author, because of several incidents of “petty in nature”.
While its beginning could be traced to Luke’s letter to his IAS colleagues during the 2002 riots to condemn the “bloodbath”, Luke says, the immediate reasons were his disagreement to certain “suggestions” of the chief minister.
Thus, Modi wanted the GSFC to give Rs 10 crore to the Chief Minister’s Relief Fund and the transfer of an officer who was related to the minister for urban development – both of which Luke rejected.
Giving an account of his resignation, Luke says, he was hurriedly asked to leave GSFC on November 10, even though he was scheduled to hand charge on November 11, with clear indications that if did not do so then disciplinary action would be taken against him.
Pointing to how farcical things bcame, Luke says, on reaching the state capital, Gandhinagar, he was asked to meet the chief minister on November 13.
“When I met him, he said had not expected me to actually be leaving and was surprised at it. He said I ought to stay in Gujarat for the next 5 to 7 years”, Luke says.
Modi even went to the extent of asking him “not to give him an answer right then but to think it over for three days after which we could meet again”.
Yet, Modi signed the resignation file “the same evening, perhaps soon after I left his room.”
And, November 20, early morning, Luke and his wife “drove to the airport and an hour later saw Vadodara receding below.”

Comments

TRENDING

Right-arm fast bowler who helped West Indies shape arguably greatest Test team in cricket history

By Harsh Thakor*  Malcolm Marshall redefined what it meant to be a right-arm fast bowler, challenging the traditional laws of biomechanics with his unique skill. As we remember his 25th death anniversary on November 4th, we reflect on the legacy he left behind after his untimely death from colon cancer. For a significant part of his career, Marshall was considered one of the fastest and most formidable bowlers in the world, helping to shape the West Indies into arguably the greatest Test team in cricket history.

Andhra team joins Gandhians to protest against 'bulldozer action' in Varanasi

By Rosamma Thomas*  November 1 marked the 52nd day of the 100-day relay fast at the satyagraha site of Rajghat in Varanasi, seeking the restoration of the 12 acres of land to the Sarva Seva Sangh, the Gandhian organization that was evicted from the banks of the river. Twelve buildings were demolished as the site was abruptly taken over by the government after “bulldozer” action in August 2023, even as the matter was pending in court.  

Outreach programme in medical education: Band-aids for compound fractures

By Amitav Banerjee, MD*  Recently, the National Medical Commission (NMC) of India, introduced two curricular changes in medical education, both at the undergraduate and the postgraduate levels, ostensibly to offer opportunities for quality medical education and to improve health care accessibility among the underserved rural and urban population.

United organisations oppose privatisation of health services in Madhya Pradesh

By Our Representative  In a strong show of opposition, multiple health associations under the umbrella of the United Organisations for Action against Privatisation of Health Services have condemned the Government of Madhya Pradesh’s recent moves towards privatising public health facilities. They argue that these actions, including outsourcing and the Public-Private Partnership (PPP) model, will compromise the availability and accessibility of essential health services for the state’s citizens.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah  The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

Will Left victory in Sri Lanka deliver economic sovereignty plan, go beyond 'tired' IMF agenda?

By Atul Chandra, Vijay Prashad*  On September 22, 2024, the Sri Lankan election authority announced that Anura Kumara Dissanayake of the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) alliance won the presidential election. Dissanayake, who has been the leader of the left-wing JVP since 2014, defeated 37 other candidates, including the incumbent president Ranil Wickremesinghe of the United National Party (UNP) and his closest challenger Sajith Premadasa of the Samagi Jana Balawegaya. 

Will Bangladesh go Egypt way, where military ruler is in power for a decade?

By Vijay Prashad*  The day after former Bangladeshi Prime Minister Sheikh Hasina left Dhaka, I was on the phone with a friend who had spent some time on the streets that day. He told me about the atmosphere in Dhaka, how people with little previous political experience had joined in the large protests alongside the students—who seemed to be leading the agitation. I asked him about the political infrastructure of the students and about their political orientation. He said that the protests seemed well-organized and that the students had escalated their demands from an end to certain quotas for government jobs to an end to the government of Sheikh Hasina. Even hours before she left the country, it did not seem that this would be the outcome.

Are Kashmir's porous borders turning region into 'convenient entry point' for drugs flowing into India?

By Raqif Makhdoomi*  Drug addiction has become a serious problem, affecting not only Kashmir but communities worldwide. In the shadowy world of drug trafficking, vast networks and powerful organizations play pivotal roles. These criminal enterprises, often bolstered by influential backers, operate with impunity, profiting from human suffering. For those able to evade law enforcement, drug trafficking can lead to staggering wealth; even at a local level, small-time peddlers can earn substantial sums. Despite international efforts to curb this menace, the drug syndicate is highly complex, eluding even the most determined governmental crackdowns due to its global reach and the powerful networks that support it.