Skip to main content

Vibrant Gujarat? Employment generation drops to 1 job per crore investment from 5 jobs per crore investment

By Our Representative
A recent analysis in a top business site has suggested that the Gujarat government has messed up data on the “successes” it claims to have achieved in the high-profile Vibrant Gujarat world business meets, with the state’s own data revealing that the summits have failed to generate jobs, which has been one of the proclaimed aims.
The analysis by Ravi Nair says that the government claims, 57% of the memorandums of understand (MoUs) “are either implemented or under implementation”, and “we have no option but to believe this claim as no concrete data is available in any of the Gujarat government websites including www.vibrantgujarat.com.”
However, the Gujarat government, says Nair, “forgot to remove the data from one place, the website of the Commissionerate of Industries, government of Gujarat”, whose figures show that from January 1, 1983 to September 30, 2016, a total of 6,251 projects were implemented in Gujarat with a cumulative investment of Rs 2.76 lakh crore, generating 10.67 lakh jobs.
The official data further state that another 4,033 projects are under implementation with a total investment of Rs 951,980 crore, which is projected to generate another 9.30 lakh jobs.
Comments the analyst: “Note the stark difference… In the already implemented projects, every one crore rupees invested generated approximately four jobs, whereas the projects under implementation (for which MoUs were possibly signed) will generate less than one job for every one crore rupees invested.”
“Historically, as a state, which was more into trade and commerce because of its geography and arid climate, Gujarat had better growth rate compared to other states, except for a brief period of four years from 1998”, Nair underlines, adding, “Towards the end of this period, Modi took over as CM of the state and within two years came the first Vibrant Gujarat summit.”
In all the eight editions of the Vibrant Gujarat summits, the Gujarat government has declared that it has signed 51,378 MoUs worth a whopping Rs 84 lakh crore.
Ironically, says the analyst, India’s GDP “currently stands at nearly Rs 170 lakh crore, and the government claims that “57% of these signed MoUs are either implemented or under implementation”, wondering why it doesn’t find reflected in the country’s GDP.
Checking on the type of MoUs signed by the Gujarat, in the road and railway tab, Nair says, he found (click HERE and HERE) a subsidiary of an infrastructure development group with a paid up and share capital of Rs 5 lakh each had signed an MoU.
On further investigation it was found that the company with such “small paid up capital” that was to make in roads and railways was none other than the National Highway Authority of India (NHAI), adding, “NHAI is the nodal agency, which takes care of the development and maintenance of national highways” and “never invests directly in any project.”
In fact, he elucidates, “NHAI, once it identifies the area for either re-development or new construction, auctions the project and invites tenders. Technically and financially qualified bidders get the contract for the construction.”
In yet another fact-check on urban development MoUs, Nair found, on checking with 14 out of 37 companies over phone, he found that these were all “small-time builders who have been asked by officials to sign up MOUs for the small-scale housing or commercial buildings.”
“One gentleman, requesting anonymity, said almost all the builders in Ahmedabad signed up MoUs, irrespective of the size of the company. And whether they sign up these MoUs or not, that is the business they are into since years”, he adds.

Comments

TRENDING

Why do I lend my support to voices protesting world class renovation of Gandhi Ashram?

By Martin Macwan* One would not expect an activist working on Dalit rights to join such a protest. Dalits carry unhealed trauma that Gandhi caused to Dr BR Ambedkar and the Dalit cause of effective political representation by using violent means of his own definition in the event of the Poona Pact. This apart, Gandhi’s ideas in general, which changed often, on caste were orthodox. I have nothing to add to the subject after the sharpest critique offered by Dr Ambedkar.

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.

Iswarchandra Vidyasagar was a 'frustrated' reformer who turned into a conservative

By Bhaskar Sur "If someone says the Manusamhita was written by all wise Manu and the principal scripture of the land and if he asks me to throw it away, I'll say it is nothing short of atrocious audacity." -- Iswarchandra Vidyasagar

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Odisha bauxite mining project to 'devastate' life of 2,500 Adivasi, Dalit farmers: NAPM

Counterview Desk  While the public hearing on mining in Mali hills has been cancelled due to protests by Adivasi and Dalit farmers of the Mali Parbat Surakhya Samiti, Odisha, who have been protesting against the proposed bauxite mining project, India’s top civil rights network, National Alliance of People’s Movements (NAPM) has said it is “deeply concerned” at the decision of the Government of Odisha to push the project in a Schedule-V Adivasi-belt Koraput district against the interests of the people and environment.

Inaccurate gender-relevant data 'spoiling' government policy on Covid social impact

By Simi Mehta*  The impact of the Covid-19 pandemic has been different across vulnerable groups. They were hit by the pandemic at various stages, whether it was accessibility to medical treatment or financial support. The second wave witnessed human suffering at a level where one can never forget the traumatized faces of people due to the inaccessibility and unavailability of essential medical services such as hospitals beds and oxygen. The probability of the third wave has also been one of the major upcoming challenges.

2002 riots: Gujarat assembly 'misinformed' about dereliction of duty, says ex-DGP

By Rajiv Shah  Former Gujarat topcop RB Sreekumar, an IPS officer of the 1971 batch, has alleged that the Gujarat government gave “totally false information” on the floor of the State Assembly regarding the appeal he made to the Gujarat governor for the “initiation of departmental action against those responsible for culpable negligence in maintenance of public order and investigation of genocidal crimes” during the 2002 riots.

Flamboyant 'demagogues' adjust politics, personality in shadow of democracy

Modi, Erdogan, Bolsonaro By Ajit Singh The terms dictators and demagogues are used interchangeably in various contexts, but there is a difference. The former rule over a totalitarian states where governments are able to exercise complete influence over every aspect of citizens’ life, whereas the latter are a "wannabe dictators" but due to the system of checks and balances they are are not fully capable to create police states.

Celebrating birthday amidst image of 'coerced, submissive' India ruled by a strong leader

Pushkar Raj*  As the weeks long birthday festivity of the leadership was being rejoiced India wide, the Covid was still raging in several parts of India. The carnival was in line with the post-Covid decisions and actions of the leadership demonstrating a pursuit of personal power and glory instead of national interest in times of disease and death.

'Devastating impact': Rural workers suffer as Govt of India NREGA budget down by 34%

Counterview Desk  A civil rights group, the NREGA Sangharsh Morcha has sent a letter to the Prime Minister and the Minister of Rural Development and Panchayati Raj stating that 34 per cent decrease in the fiscal budget of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) for year 2021-22 has added to woes on India’s rural population, already suffering from “devastating impact” of the Covid-19 pandemic.