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

Modi, Shah 'forget': Gandhi’s first Satyagraha was against citizenship law of South Africa

By Nachiketa Desai*
Hindu fanatic Nathuram Godse assassinated Mahatma Gandhi once on January 30, 1948 but his followers raising the war cry of ‘Jai Sriram’ are killing the Mahatma every day. In his home state of Gujarat, Gandhiji was killed a thousand times in 2002 when over 2,000 Muslims were butchered, their women raped, homes and shops plundered and set on fire and even unborn babies ripped out of the wombs of their mothers.

Union Budget 'moves away' from Right to Education, 1.3 lakh schools closed down

By Dr Aparajita Sharma*
It was a shocking reply by the Union human resource development minister to a question raised in Parliament on closure of schools in a country where lakhs of children are still out of school. On December 2, the minister, Ramesh Pokhriyal ‘Nishank’, told Lok Sabha that the NITI Aayog’s education project, Sath-E, has led to 35,996 schools of different levels being merged in Madhya Pradesh, 4,312 in Jharkhand and 1,803 in Odisha. NITI Aayog is the Central Government’s policy think-tank.

CAA-NPR-NRC will 'target' 99% homeless, who are without birth certificates: NCU

Counterview Desk
Claiming to base on a survey in five states (Andhra Pradesh, Bihar, Jharkhand, Maharashtra and Tamil Nadu), which finds that over 99% of the homeless people do not have birth certificates, a civil rights organization which networks activists, researchers, urban practioners, lawyers, informal sector workers, has claimed that the Citizenship Amendment Act (CAA), as also the proposed National Register of Citizens (NRC) and the National Population Register (NPR), are likely to adversely impact this section the most.

Modi 'warned': Will not remain silent when women are labelled terrorists and traitors

Counterview Desk
As many as 13 women's rights organizations and 162 individuals have issued an open letter to Prime Minister Narendra Modi stating that in the light of hate speeches during Delhi elections, especially directed against women, it is his "Constitutional duty to protect all citizens" and tell his partymen "to fight the elections in a manner that upholds the Constitution, not one that increases the fear and insecurity among women."

Law 'governing' world's tallest Statue of Unity refers to local tribals as occupiers

By Rohit Prajapati, Krishnakant*
The recently enacted Statue of Unity (SoU) Area Development and Tourism Governance Act, 2019 in Gujarat comes amidst a terrifying atmosphere of intimidation, house arrests, detentions and FIRs, not to mention the overarching implementation of Section 144 across the state.

Anti-CAA: Mallika Sarabhai joins students, faculty to protest dy CM's 'divisive' talk

By Our Representative
Taking strong exception to deputy chief minister Nitin Patel’s statement against those protesting against the Citizenship Amendment Act (CAA) and the proposed National Register of Citizens (NRC), well-known danseuse Mallika Sarabhai has joined tens of activists and students and faculty of Gujarat University, CEPT University, Indian Institute of Management-Ahmedabad, Gujarat Vidyapeeth and Nirma University to say that they are seeking “azadi” from the fascist and communal forces of the country.

Ramchandra Guha on how Gandhi outgrew his Gujarati bania 'parochialism'

By Rajiv Shah
More than a fortnight ago, prominent historian Ramchandra Guha, who calls himself Gandhi scholar and not a Gandhian, came to Ahmedabad. While I was part of a small group of persons who met him at lunch, his lecture on Gandhi in the evening, where he sought to interpret what swaraj meant to Gandhi, surely, interested the selected audience that had been called to listen to him.

Ironical? Hindutva is all 'fire and spite', as Muslim women become apostles of peace

By Sandeep Pandey*
On January 26, Republic Day, 2020, while protests simmered against Citizenship Amendment Act (CAA) and National Register of Citizens (NRC) throughout India, a dozen North American cities also witnessed historic protests. Indian Embassies have been witness to protests in the past. But this time it was different.

Union Budget: 24 crore people live in the dark, Sitharaman talks of prepaid smart meters

Counterview Desk
The Centre for Financial Accountability (CFA), a Delhi-based advocacy group, commenting on the Union budget 2020-21, has has called it a case of missing wood for the trees, pointing out, Finance Minister Nirmala Sitharaman "missed an opportunity to fix the economy, which is reeling under an unprecedented slowdown, with all indices pointing towards a recession."