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

World Bank clarifies: Its 26th rank to India not for universal access to power but for ease of doing business

By Our Representative
In a major embarrassment to the Government of India, the World Bank has reportedly clarified that it has not ranked India 26th out of 130 countries for providing power to its population. The top international banker’s clarification comes following Union Power Minister Piyush Goyal’s claim that India has “improved to 26 position from 99” in access to electricity in just one year.

Mental health: India's 95% patients "deprived" of medical care, treatment gap 70%

By Moin Qazi*
Among the many challenges India faces, the most underappreciated is the ongoing mental health crisis. Mental illness is actually India’s ticking bomb. An estimated 56 million Indians suffer from depression, and 38 million from anxiety disorders. For those who suffer from mental illness, life can seem like a terrible prison from which there is no hope of escape; they are left forlorn and abandoned, stigmatized, shunned and misunderstood.

Modi model? "Refusal" to build Narmada's micro canals, keep Kutch dry; help industry

By Medha Patkar*
This is the latest photograph of the Kutch Branch Canal (KBC) of the Sardar Sarovar, as of April 8! What does it show, expose, and what memories do you recall? Is it dry or dead? Is it a canal or a carcass of the same?

Bill Gates "promoting" GMO, Bt cotton, like cartels that have roots in Hitler's Germany

By Our Representative
World-renowned environmental leader and ecologist Dr Vandana Shiva has expressed concern that Bill Gates, founder of Microsoft Corporation, has joined the bandwagon of “a poison cartel of three" – Monsanto and Bayer, Syngenta and ChemChina, Dow and DuPont – all of whom allegedly have “roots in Hitler’s Germany and finding chemicals to kill people”.

Indian talc products contain "contaminated" asbestos structures, can cause cancer: Study

Counterview Desk
A recent study, using polarizing light microscopy, transmission electron microscopy (TEM), electron diffraction, and X-ray analysis on multiple over-the-counter Indian talc products for the presence of asbestos, has concluded that large quantities of body talc products are likely to pose a public health risk for asbestos-related diseases, especially for the cancers related to asbestos exposure.

Why are you silent on discrimination against Dalit jawans? Macwan questions Modi

By Rajiv Shah
Close on the heels of releasing his book in Gujarati, "Bhed Bharat", which lists 319 cases of atrocities against Dalits and Adivasis across the country over the last five years, well-known Gujarat Dalit rights leader Martin Macwan has shot an open letter to Prime Minister Narendra Modi, telling him the reasons why he does not want vote for the BJP.

Emergence of a rare Dalit teacher in IIT-Kanpur "disturbed" certain faculty members

By PS Krishnan, IAS (Retd)*
Dr Subrahmanyam Sadrela, a faculty member in the Department of Aerospace Engineering, Indian Institute of Technology (IIT)-Kanpur since January 1, 2018, and one of the rare Dalit members of the faculty in IIT group of institutions, is facing the threat of revocation of his PhD thesis, and thereby also jeopardizing his job and career.

Investigation shows Narmada downstream "seriously" polluted. Reason: apathy, greed

By Rohit Prajapati, Krishnakant, Swati Desai*
Our investigation regarding quality of water flowing in the Narmada river downstream of the Sardar Sarovar Dam (SSD), dated April 6, 2019, between 11.00 a.m. to 4.00 p.m. reiterates, what is commonly known now, that the Sardar Sarovar Project (SSP) is planned without considering its impact on the downstream Narmada River stretch of 161 kilometres, its ecology, biodiversity and fishery, and lakhs of people living close to and dependent on the river directly or indirectly. This, in turn, has led to its present disastrous state.

RTE in remote areas? Govt of India "plans" to close down 2.4 lakh schools

By Srijita Majumder*
The Right to Education (RTE) Act, 2009, came into effect on April 1, 2010, for the first time made it obligatory on the part of the State to provide free and compulsory education to all children from 6-14 years of age in India. The Act, despite its limitations, had progressive elements like neighbourhood schools, community participation, ban on corporal punishment, no detention, continuous and comprehensive evaluation and it hence it appeared that India was not far from achieving universal elementary education.

Election Commission suffering from worst-ever "credibility crisis": Ex-bureaucrats

Counterview Desk
In an open letter to President Ram Nath Kovind, a group of ex-bureaucrats have lamented ‘weak-kneed’ responses of the Election Commission of India (ECI) in the run up to the 2019 Lok Sabha elections. Citing various violations of the model code of conduct, and pointing towards how ECI has taken little action, the letter asks the President to tell ECI to “conduct itself in a manner where its independence, fairness, impartiality and efficiency are not questioned.”