Vibrant Gujarat Global Summit 2017: Big-bang promises missing

The 2017 Vibrant Gujarat Global Summit's inaugural ceremony on Tuesday looked like a shadow of its own past glory as the trademark big-ticket investment promises were missing.

Several chief executive officers attending the summit praised Prime Minister Narendra Modi's "dynamic and visionary leadership" over the past two and a half years.

The PM's speech, which was at least a quarter of an hour shorter than last year's, showcased India's growth story. "Despite the global slowdown, we have registered excellent growth. India is a bright spot in the global economy." The World Bank, the International Monetary Fund and other institutions have projected even better growth in the coming days, he added. 

Listing out India's global rankings on various indicators, Modi said, "Creating an enabling environment for business, and attracting investments, is my top priority."

Modi was called a transformational leader by many, including Executive Chairman of Cisco John Chambers and Chief Executive Officer of Fairfax Canada Prem Watsa. Calling Modi the Lee Kuan Yew of India, Watsa said the Prime Minister can transform the country. The late Singaporean leader was the city-state's first Prime Minister and is credited with transforming Singapore into a developed nation in a span of 25 years. 

Investment promises came only from a couple of people. Gautam Adani, chairman of the Adani Group, committed fresh investments worth Rs 49,000 crore over five years and Lulu Group promised Rs 12,000-crore investment.

Some like Reliance Industries (RIL) Chairman Mukesh Ambani, who was referred to as "handsome" (leaving Ambani in splits) by Huntsman Corp President and Chief Executive Officer Peter Huntsman, underlined their investments already made in the state. Ambani said that RIL’s investments in Gujarat were the biggest by an Indian corporate in a single state, at about Rs 2.4 lakh crore. 

“In fact, in the past four years, we have invested Rs 10,000 crore more than what we had promised, or around Rs 1,25,000 crore,” he said. 

Piruz Khambatta, chairman and managing director of Rasna Pvt Ltd, justified the stance of not speaking about investments. “Once investment commitments are announced, it actually becomes a tool in the hands of the opposition and the critics to say that only a fraction of the investments comes in. This is probably why (Mukesh) Ambani spoke about the actual investments he has made in the state. So, this is a strategic decision.”

Ratan N Tata, chairman of Tata Sons, and the first one to speak at the event, reminisced what he had said a few years ago. “If you were not in Gujarat, you are stupid.” He ended his speech to a round of applause when he said in Gujarati, “Amey bhi Gujarati chhu; Ane aapne paachha Gujarat ma aavya chhe (I am a Gujarati too; I have now come back to Gujarat).” 

Though invited, former Tata Sons chairman Cyrus Mistry chose to stay away.

Adani to pump in Rs 49,000 crore

Adani Group plans to invest over Rs 49,000 crore in Gujarat over five years and this is expected to generate direct and indirect employment for 25,000. Of this, around Rs 16,700 crore would be invested in Mundra, Dahej, Hazira and Tuna to set up a container terminal capacity to 10 million TEUs and to connect Hazira with the Delhi-Mumbai freight corridor through a rail-link, among others. In renewable energy, the group will invest Rs 23,000 crore by 2021 to develop and generate solar and wind energy. In the agri business, under Adani Wilmar, it plans to invest Rs 1,200 crore to double capacity. of edible oil facility at Mundra from 3,000 tpd. New investments are planned in the water and cement sectors as well - a Rs 5,500-crore cement plant at Mundra with capacity of 10 million tonnes and a desalination plants at Rs 2,000 crore.

Lulu to invest  Rs 12,000 crore

Lulu Group has committed to make an investment of Rs 10,000-12,000 crore in Gujarat. “Our Lulu Shopping Mall in Kochi, Kerala, is India’s biggest shopping mall. In Ahmedabad, we are looking at opportunities to start a shopping mall, hotel and a mini convention and exhibition centre,” said Yusuffali M A, MD.