Ahmedabad: The two-day 'Vibrant Gujarat Global Investors' Summit 2009' hosted by the Gujarat government seems to have far exceeded the expectations of the organisers with investments of Rs12 lakh crore being promised by prospective investors into the state of Gujarat.
Speaking at the valedictory ceremony of the summit, Gujarat chief minister Narendra Modi said over 8,500 Memoranda of Understanding (MoU) were signed between the state government and prospective investors. He said that the investments would create more than 25 lakh job opportunities.
Modi received a standing ovation from the delegates, which included members of foreign delegations and prominent industrialists from both India and abroad.
Reports commended Modi on being able to attract this quantum of investment into the state at a time when the global economic scenario was unfavourable to business the world over.
Modi said that the three earlier 'Vibrant Gujarat' summits in 2003, 2005 and 2007 together managed promises for investment of over Rs6.34 lakh crore, the 2009 summit by itself saw the signing of MoUs that promised investments of Rs12 lakh crore.
Reports said that before the summit kicked off, the government was hopeful of getting around 3,000 MoUs worth Rs10 lakh crore in investments, signed.
Votes of confidence
The MoUs also got a vote of confidence from Essar group chairman Shashi Ruia and Bharati group chairman Sunil Mittal, immediate past president of the Confederation of Indian Industry (CII).
Both said that these MoUs should not be viewed merely as "paper works to be signed and forgotten", while citing their own examples as proof of the fact that industrial houses would be serious about their investment plans for Gujarat given the conducive industrial atmosphere in the state.
Reliance Anil Dhirubhai Ambani Group (ADAG) chairman Anil Ambani also said that the "environment" in Gujarat was different from anywhere else in the country, or for that matter in the world, while commending Modi about his achievements in converting "adversity into opportunity."
Reliance Anil Dhirubhai Ambani Group (ADAG) inked three accords valued at around Rs105 billion (Rs10,500 crore, or $2.13 billion) with the Gujarat state government.
The investments would be towards building a port jetty in Saurashtra, a major power plant and three cement factories. The agreements were inked on the second day of the two-day summit. Ambani also praised chief minister Modi, describing him as the "next leader of India".
"Under your leadership there is a new-found confidence in Gujarat, enthusiasm and determination to succeed," said Anil Ambani at the valedictory function, reflecting the tone of numerous corporate leaders from India and overseas during the event.
Reports said that around 39 MoUs valued collectively at over Rs41,002 crore in chemicals and petrochemicals sector were signed at the summit.
SBI signs MoUs of Rs25,000 crore The government-owned State Bank of India also signed two agreements with the state government to invest Rs 25,000-crore in Gujarat.
The bank will deploy Rs20,000 crore for the micro, small and medium enterprises (MSMEs) sector, while another Rs5,000 crore will be used for equity participation in infrastructure projects.
The contribution of SMEs is nearly 40-50 per cent to GDP growth of the nation, and this sector accounts for 50 per cent of the industrial output.
According to SBI, banks could accrue a revenue of over Rs28,000 crore by encouraging the SMEs. The SME sector will create value by a 14 growth in revenue and a 13 per cent growth in profit in the next 5 years.