India’s Superpower Euphoria CC

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2011-01-12 20:12:52 UTC

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India’s Superpower Euphoria CC
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12/01/2011 by navanavonmilita

8 Jan, 2011, 05.23AM IST, Jaideep Mishra,ET Bureau
Overseas tapping of funds to make domestic infra projects riskier

Read more on »us|social science research network|forex|excel|domestic
infrastructure projects

There is reportedly much loud thinking and discussion in the
government to raise debt and equity funding abroad in a big way, to
finance domestic infrastructure projects . But given the wonky policy
environment for most infrastructure sectors, with dicey collection of
user charges and other rigidities, tapping funds overseas would imply
adding on considerable foreign exchange risks to overall project
risks. Ultimately though, the viability or otherwise of the external
finance option for a specific project would depend entirely on its
cash flow.

A recent working paper published by the Social Science Research
Network is on valuation in project finance. It proposes a new method
to value project-financed investments. The paper begins by defining
project finance as ‘the raising of funds on a limited recourse or non-
recourse basis, to finance an economically separable capital
investment project, in which the providers of the funds look primarily
to the cash flow from the project as the source of funds to service
their loans and provide a return on their equity invested in the
project’ .

Hence the need to estimate the project’s future cash flows as
accurately as possible, in order to quantify both the probability of
default (relevant for equity and debt providers), and the expected
profitability (mainly concerns equity holders). It is added that
starting with the successful financing of the North Sea oilfield
explorations in the 1970s, project finance has evolved as the state-of-
the-art financing method for large-scale investments. For instance,
over 50% of projects with capital expenditure in excess of $0.5
billion are now project financed in the US , it is mentioned in the
study.

The paper proffers a simulation-based cash-flow model, labelled
project finance valuation tool. It is seen as a better method to
estimate cash flow, compared to the discounted cash-flow analysis
route. The tool combines latest vintage cash-flow modelling, involving
stochastic methods, with time-series forecasting techniques. The idea
is to work out the probability of default for an investment project,
and also its net present value. For empirical evidence, the study
follows up on an equity investment in a 1,000 mw coal-fired power
plant.

The paper notes that the discounted cash flow method is the most
common concept applied in valuation. When it comes to equity
investment , valuation can be determined in two ways, via the
discounted cash flow route. One approach is to estimate free cash
flows for the corporate entity, which is then discounted by the
weighted average cost of capital. Next, by subtracting the debt value
from the equity value, the value of equity investments can be derived.
In the other approach, expected free cash flows to equity are
discounted at the cost of equity. The point is that the both the
valuation methods arrive at cash-flow risk simply by adjusting the
discount rate.

The way ahead is to take account of cash-flow distribution in an
investment project more holistically, again in two ways. One approach
is to opt for a scenario-based modelling approach, and the other is to
use Monte Carlo simulation for the purpose, as proposed in the paper.
As for scenario-based , deterministic modelling, the analysis focuses
on different scenarios, with each scenario leading to a ‘single-point
estimate’ . It is clear, avers the paper, that in this valuation
method, ‘information on cash-flow distribution is lost’ .

It adds that Monte Carlo simulation techniques, as used in the study,
skirt around the drawback by ‘random sampling from several probability
distribution functions’ , so as to generate a more representative
picture of the risks. And this would require forecast of the
probability distribution function of all factors likely to influence
cash flow. It makes the technique ‘rather complex’ , but the ready
availability of computing power does make simulation a powerful tool
to incorporate uncertainty and risk in project financing plans.

In the paper, the simulation-based valuation tool is developed using
Matlab, a programming language used for numerical applications. It is
emphasised that the user does not need to handle Matlab directly and
can calibrate the tool via an Excel spreadsheet and include all
parameters . The paper identified three categories of relevant costs
for the power plant: fixed costs, variable costs and emission rights.
Further, power generation depends on several related factors. The
study shows that simulation procedure, and the use of a number of
iterations, does significantly impact default probability and net
present value distribution. It is revealed that higher time resolution
leads to higher default probabilities , but also to higher expected
cash flows. Therefore, volatility modelling is of prime import for
valuation results, concludes the paper.

***@timesgroup .com

12 Jan, 2011, 04.35PM IST,ET Now
Sensex may touch 23,000 by March: Andrew Holland, Ambit Capital

Read more on »stocks|sensex|reliance industries|market|banking stocks|
andrew holland|ambit capital private limited

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[Sensex may touch 23000 by March: Andrew Holland]

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In an interview with ET Now, Andrew Holland, CEO Equities, Ambit
Capital Private Limited , talks about the market, their approach to
the banking space, and his favourite sectors. Excerpts

If I read your latest strategy report, you are not negative but you
are sounding rather bearish to me?

Andrew Holland : Not bearish at all. I am still sticking to the target
of 23000 for the Sensex by March of this year. I do not see anything
out there that could have moved me away from that and really it is
like déjà vu. This time last year we had similar scenario, did really
the markets in India were falling, expectations at global growth would
pick up significantly. All faded through and whilst I am of the belief
now that the US is what I would call a normal recession, I do not
think the pick up is going to be that significant that we are going to
start seeing money move away from emerging markets. So it is going to
be a pick up in the US and it is going to be second half led. So
therefore, I expect that we will start to see cooling off in the first
quarter in terms of the economic recovery. So I do not think emerging
markets happen to be unloved as some people are pointing out. India in
the short term since the scams happened, the governments really are
inactive or they are showing no action to change anything. That has
worried a lot of players in the short term but I expect that to change
as well. So this is a good buying opportunity now because the markets
to move towards that 23000 by March of this year.

So what are you recommending your clients to buy, buy defensives which
is consumption/pharma and FMCG or be with beta sectors, metals, real
estate, banks?

Andrew Holland : We came into a more defensive domestic consumption.
Pharma and IT is the kind of growth but defensive sectors but
increasingly we will move that, the banking sector has had a big fall.
That has been overdone now and all expectations of inflation interest
rates have been really put into the share prices now. One area that we
are looking out is that also bullish on global growth at the moment,
then obviously you have to look at some of the players who have large
operations outside of India and obviously Tata Motors, Tata Steel ,
Hindalco, all come to mind. So anyone who has got overseas earnings or
overseas operations is a good play. So you might well have a portfolio
now which is more growth orientated domestically as well as for
offshore overseas global growth and that is what is going to help the
index move forward.

What is your take on the interest rates sensitives right now? We have
the IIP data which will get released today and expectations are not
riding too high, the concern on inflation and rates going up, how
would you approach these 3 sectors, real estate, autos and banks?

Andrew Holland : Real estate is something I am very cautious on partly
because the transparency is so low, it is very difficult to understand
half of these companies how they get their earnings and so forth, so I
remain sceptical on the real estate sector. Prices remain too high and
that bound to come off as interest rates rise. As regards with banking
sector, the 20% fall in the index or stocks has been overdone now. I
have always maintained and if India is going to grow at 9-10%, then
obviously you are going to have credit growth and if the government
can now step in an start making some soothing noises on inflation and
interest rates and so forth, then India Inc. will start to increase
capacity and capex and that will be great for the banking sector. So I
am a buyer of the banks. That is a sector which has been overdone. In
terms of auto, I still expect a lot of growth this year. You had huge
outperformance in terms of stock prices. So whilst it might be more
muted, you will get performance but maybe you should look at a company
like Tata Motors where you are getting a lot of earnings from overseas
rather than just your domestic markets, that could be the standout
performance this year.

12 Jan, 2011, 08.05PM IST,ET Now
Indian economy overheated: Jahangir Aziz, JP Morgan

Economy

In an interview with ET Now, Jahangir Aziz, Chief Economist, JP
Morgan , talks about IIP growth and its impact on Indian economy.

IIP 2.7%, has this come in as a surprise or was it something that you
were expecting?

Jahangir Aziz : It has come as a surprise but I do not think we should
be jumping off the walls with this number. There is a clear reason as
to why this is happening. Investment has not picked up which is a
substantial reason and there is a technical reason. Last year, we had
Diwali in November. The year before that, we had Diwali in October.
You really need to look at October-November together. Look at October-
November together, IP has slowed to 7% but it is still pretty healthy
and it is the right thing to happen. This economy is pretty
overheated. It has been growing way above its potential because there
has been very little capacity addition and it is a good thing that the
economy is slowing down.

We were just talking about the spiralling prices of commodities, crude
being a factor there, you have seen metals across the board and
particularly steel companies riding prices on the back of spiralling
prices of coal as well considering the Australia situation right now
which could probably have an impact going forward as well, keeping all
this in mind, is this a very negative note to probably take a look
forward into the next half of this year, particularly on commodities?

Jahangir Aziz : We have been having this commodity price spikes in the
US and European Union, central banks have eased monetary policy. That
is the mirror image. You have to hedge the impact of the quantitative
easing. The impact of the quantitative easing is to reflate the US
economy, you need a hedge against that reflation and commodities seem
to be the only way out. So you will get that but unless you have a
massive increase and a sustained increase in commodity prices but
again does not look like it but given the fact that global recovery is
not really going that strong, it is a negative but I would not make
too much out of that.

It is almost a double for the government right now, growth vis-à-vis
inflation but keeping in mind that inflation is also driving and
growth is also not picking up, what are the options left in front
there?

Jahangir Aziz : I do not think there is any trade off. If the
government does not bring down the inflation level, the 9% growth is
not going to materialise, investors are going to look at the rising
inflation and at some point of time will however make the conclusion
that the government has to be very aggressively tighten both monetary
and fiscal policy and therefore the growth is not going to
materialise. So I really do not think that in the case of India which
is very very supply constrained, I really do not think that the
government really has that trade offs. Those trade offs exist in
countries where you still have excess capacity, demand is still not
very strong. So you have that trade off but in a country that has not
had any excess capacity for almost 12 months now, I really do not see
there is any trade off. We are growing at a rate much higher than the
potential of the economy is and that growth rate has to come down if
we have to get some sanity in these inflation numbers.

12 Jan, 2011, 06.25PM IST,PTI
WB signs $220 mn deal with Bihar for Kosi recovery project

Read more on »world bank|robert b zoellick|bihar kosi recovery project|
2008 floods

PATNA: The World Bank today signed a USD 220 million agreement with
the state government for ‘Bihar Kosi Recovery Project’ to rebuild
affected areas in 2008 floods , head of the financial institution
Robert B Zoellick said here.

Speaking after the signing of the agreement, Zoellick said besides
supporting flood recovery efforts, the World Bank would help Bihar
reduce risks of flooding and boost emergency responses in the event of
a disaster.

The Bihar Kosi Recovery Project is the first in a series of proposed
projects for the state and World Bank is likely to provide about USD
one billion additional support to Bihar over the next few years but
this is a subject to approval from the Bank’s board of executive
directors.

“Future projects will focus on agriculture, roads as well as flood
management and disaster preparedness,” Zoellick, who is on a two-day
visit to the state, said.

The World Bank president said of the total of USD 259 million for the
Kosi Recovery Project, the state government would contribute USD 39
million for the project.

The cost per house would be Rs 55,000 with an additional cost of Rs
2,300 for a toilet and Rs 5,000 for solar powered lighting. In cases,
where beneficiaries do not own land, the state government would
provide additional assistance of Rs 5,000 to buy land.

The five key components of the project are owner driven housing
reconstruction, reconstruction of roads and bridges, strengthening
flood management capacity, livelihood restoration and enhancement and
improving emergency response capacity, he added.

World Bank country director Robert Zagha, Joint Secretary in the
Department of Economic Affairs Venu Rajamony and State Planning
Development Principal Secretary Vijay Prakash signed the agreement in
the presence of Zoellick, Chief Minister Nitish Kumar and Deputy Chief
Minister S K Modi.

Kumar said the 2008 floods, following a breach in the embankment of
Kosi river at Kusaha in Nepal, had affected about 3.3 million people
in the districts of Purnia, Saharsa, Supaul, Madhepura and Araria.
About one million people were evacuated and about 4,60,000 of them
were provided temporary shelter in relief camps.

Thousands of families dependent on farming lost livelihood due to
siltation and massive damage had been caused to housing and
infrastructure, he said.

Kumar said the Kosi Recovery Project was aimed at supporting
reconstruction of about 1,00,000 houses for which cash subsidy of Rs
55,000 would be provided to each of the family.

The construction plan has already been drawn and the houses would be
earthquake-resistant, he said, adding 90 bridges and 290 kms of rural
roads would also be constructed.

It has always been Hero Honda versus Bajaj Auto, at a time when the 2
wheeler industry itself is growing, all players are growing, all
players are sellng more 2 wheelers on a monthly basis, how come we
have such a divergent performance?

Andrew Holland : There has been some large selling of Bajaj Auto by
some long only funds who were sitting on huge gains from 2010. That is
why you are seeing the exaggerated share price movement of Bajaj Auto.
I expect that will start to recoup some of those losses in the short
term as we move forward but when I am looking at the auto sector, I am
still looking domestically but if I can also get overseas earnings as
well which I would with Tata Motors, that is going to be the standout
performer. So whilst that might be more mutually weighted in Bajaj and
Hero Honda, I would be more overweight on Tata Motors at this point.

2 ideas from you and let’s classify them based on market cap, one $1
billion plus idea for the year 2011 and one sub-billion dollar idea
for the year 2011.

Andrew Holland : In terms of large cap, I am still of the view which
is a longstanding view that Reliance will be a leader this year for
the odd reasons I have mentioned many times in the on your show. So I
still think Reliance will start to deliver shareholder value of the
share. So that is one which will be a standout this year going
forward. Below that, it is always difficult to pick midcap stocks
because they have bounce of outperformance but I still like the
retailing sector, there is a lot of change happening there which is
all for the good and obviously the Titan stand out there. So those are
the stocks which I would like. Education remains a favourite. So there
are plenty of midcap stocks but you have to be very selective and you
are going to have bounce of underperformance too but these are 2
sectors, education and retail which are going to be at the forefront
of India in the next 3 to 5 years and we are just really at the start
of it.

Vibrant Gujarat summit: tycoons sing Modi paeans
Meghdoot Sharon , CNN-IBN
Posted on Jan 12, 2011 at 10:11pm IST

Ahmedabad: The top names in Indian industry were in Gujarat on
Wednesday pledging investments on the first day of Narendra Modi’s
vibrant Gujarat summit.

Gandhinagar was all decked up almost as if New Year is being
celebrated again and kicking off the celebrations were the Ambani
brothers.

The brothers at war for long are now brothers in arms. Anil Ambani set
the stage at the summit with a public acknowledgement that all was
well between him and his brother Mukesh Ambani.

Click to play video

Ahmedabad: The top names in Indian industry were in Gujarat on
Wednesday pledging investments on the first day of Narendra Modi’s
vibrant Gujarat summit.
Gandhinagar was all decked up almost as if New Year is being
celebrated again and kicking off the celebrations were the Ambani
brothers.
The brothers at war for long are now brothers in arms. Anil Ambani set
the stage at the summit with a public acknowledgement that all was
well between him and his brother Mukesh Ambani.

“This is my father’s Gujarat, Gandhi’s Gujarat, my respected elder
brother’s Gujarat,” he said.

“Our dream, our vision for Gujarat is a golden Gujarat, a green
Gujarat,” said Anil Ambani.

The reference to Mahatma Gandhi was the running theme at the summit.
The venue itself created in 172 days is named Mahatma Gandhi Mandir
with Gandhi’s Dandi March recreated.

Reliance has been an emotional part of Gujarat’s success story. This
is the best gift you can give Gujarat in its 50th year,” said Mukesh
Ambani.

“Gandhi’s ideals are what drive me. I am confident that Gujarat will
be number one destination,” said Modi.

“This venue where we are sitting is a lasting tribute to the life and
ideas of Mahatma Gandhi. In a short span of fifty years, Gujarat has
become a leader in the country in many aspects,” he added.

Modi himself accounted for much adulation and received accolades from
captains of industry.

“What made us decide to come to Gujarat was his promise that he would
confirm the allotment of land and facilities in a few days. In this
case few days became three days,” said Ratan Tata.

But in the end, the gap between the MoUs signed and implemented is
large. On day one of the summit, the Gujarat government claimed to
have signed deals worth Rs 15 lakh crore – much more than the Rs 12
lakh crore figure claimed for both days last time round. But the money
that did come through was about Rs 4 crore.

Fifth edition of Vibrant Gujarat breaks previous record on Day-1
BS Reporter / Mumbai/ Ahmedabad January 13, 2011, 0:04 IST

Draws 2766 MoUs worth Rs14.9 lakh crore

Breaking all records of the previous two-day Vibrant Gujarat Global
Investors’ Summit 2009 (VGGIS), this year’s Summit saw memorandums of
understanding (MoUs) worth Rs15 lakh crore being signed on the first
day alone. In the previous event, the total 8,500 MoUs signed in the
two days amounted to about Rs12.3 lakh crore.

The fifth Vibrant Gujarat Summit 2011 was inaugurated on January 12
and saw a record of 2,766 MoUs in 26 different sectors being signed
till 5pm on Wednesday. “Gujarat government is organizing the biennial
summits right from 2003 and in its 5th summit on the very first day
saw Rs15 lakh crore worth of investment proposals being committed
which was a new record for the state of Gujarat,” said government
spokesperson and Minister of State for Industries Saurabhbhai Patel.

Of the total MoUs signed on day one of VGS 2011, around 48 MoUs worth
Rs3.05 lakh crore were from power, 13 MoUs worth Rs1.22 lakh crore
were for the various Special Investment Regions (SIRs), 41 MoUs worth
Rs1.34 lakh crore were for mineral sector and about 16 MoUs worth
Rs1.72 lakh crore in the financial services sector. Apart from these,
around 16 MoUs worth Rs40,679 crore were signed for the oil and gas
sector, 153 worth Rs73,546 crore were signed for PCPIR while over 300
MoUs worth Rs75,103 crore were signed for engineering, auto and
ceramic industries.

Learning from the past such summits, the Gujarat government took
additional steps to ensure filtering of unviable projects. “This year
we have rejected about 10-12 per cent MoUs after thorough scrutinising
since we found them unviable,” said a senior state government
official.

The Special Investment Region (SIR) being planned at Dholera will
house the country’s first city, developed on the public-private
partnership model, a top source associated with the project informed
today.

Amitabh Kant, managing director and chief executive officer, DMIC
informed today that Dholera SIR will house India’s first city
developed on the PPP model. Speaking at the seminar on SIR, SEZ and
DMIC at the VGGIS event in Gandhinagar today, Kant informed that this
will be one of the only city in the country. “In India, we have all
the towns in India developed by state support, while at Dholera a city
will be developed on the partnerships with the private developers as
well as government support,” said Kant.

Further, AK Sharma, CEO, GIDB informed that the region is being
readied for the development works. “There were issues pertaining to
water logging etc but that are being taken care of and we are doing
the scientific management for the same,” he said. The SIR, SEZs and
DMIC witnessed 12 MoUs being signed on the Day-1 of the VGS-2011 event
with an investment commitment worth Rs1.39 lakh crore, which will
generate employment opportunity for around 1.29 lakh individuals.

Apparently, the summit also saw participation from around 90 countries
including the likes of Japan, Canada, Australia, South Africa and the
US, among others. Similarly, around 16 Indian states like Karnataka,
Chhatisgarh and Andhra Pradesh, among others made the most of the
event. With its participation in the two-day Vibrant Gujarat 2011
Summit reaping benefits, the state government of Karnataka has been
able to attract investment worth Rs22,000 crore from companies within
and without Gujarat.

At the end of first day of the summit, Karnataka saw 15 memorandums of
understanding (MoUs) and 5 expressions of interest (EOIs) being signed
in sectors like steel, textile, cement, engineering and food
processing. Among these included companies like Kalyani Steel, Aravali
Energy, Mukand Ltd., Ultratech Cement, Gujarat Ambuja Exports Limited,
Mahindra and Mahindra and ETCO Denim, apart from others.

“Karnataka is keen on tapping the potential of areas of development
beyond the confines of Bangalore and these include Mysore, Mangalore,
Hubli-Dharwad, Belgaum, Tumkur and Kolar, among others. We have
benefited by participating in the summit in Gujarat and have been able
to attract investment of about Rs 22,000 crore. We hope to generate
over 5,000 direct employment with this,” said VP Baligar, principal
secretary, commerce and industries department, Government of
Karnataka.

Talking about the state’s participation, Baligar said that both
Karnataka and Gujarat are similar in terms of area and culture which
will help in generating business at such summits. “We intend to
implement certain things that we have learnt in Gujarat. For instance,
we also intend to construct a convention centre similar to the Mahatma
Mandir in Gandhinagar for dedicatedly conducting our investor summit.
Also, we have learnt a lot about networking and inviting industry
representatives for such summit from Gujarat,” said Baligar.

Ruing about the losing the Tata Nano project to Gujarat, Baligar said
that the state government has now embarked on building a land bank of
over one lakh acres to augment business development in Karnataka. “We
lost the Nano project because we didn’t have land. Now we are building
enough land bank to avoid such circumstances,” he added.

12 Jan, 2011, 04.43PM IST,PTI
Vibrant Gujarat 2011: L&T commits Rs 15,000 cr investment on infra
projects

Read more on »vibrant gujarat global summit 2011|investment

Larsen & Toubro Ltd.

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AHMEDABAD: Engineering and construction major Larsen & Toubro on
Wednesday said it will invest Rs 15,000 crore in Gujarat on
infrastructure projects in the state.

“This year we have signed an MoU to invest Rs 15,000 crore in Gujarat
in infrastructure projects,” Larsen & Toubro chairman and managing
director AM Naik said in Ahmedabad at the 5th Global Summit of Vibrant
Gujarat.

He, however, did not specify the details of the projects and the
timeline of the investment .

“The company has been investing in the state and our commitments will
grow by the day,” Naik added.

L&T, which set up operations in Gujarat in 1979, currently has nine
factories operational in the state.

It also has a shipbuilding facility at Hazira, which is geared up to
take up construction of niche vessels like specialised Heavy lift
Cargo Vessels, CNG carriers, Chemical tankers, defense and para
military vessels and other role specific vessels.

Vibrant Gujarat Global Investors’ Summit: The big business show
Published: Wednesday, Jan 12, 2011, 15:40 IST
By Jumana Shah | Place: Ahmedabad | Agency: DNA

The fifth Vibrant Gujarat Global Investors’ Summit, one of the biggest
brands tohave emerged from Gujarat in the last decade, sets sail
today.

DNA looks back at the last four editions of the biennial event and
examines the aggressive policies, promotional packages, subtle
political manoeuvres and transforming popular perceptions, that
sculpted the biggest event in the state.

The entrepreneurial temper of the state of Gujarat has been tapped,
trapped, pampered and popularised over the past decade as never
before.

As the fifth edition of the Vibrant Gujarat Global Investors’ Summit
kicks off today at the hurriedly constructed Mahatma Mandir at
Gandhinagar, DNA looks back at the past four editions of the biennial
event.

VGGIS is easily one of the biggest brands that have emerged from
Gujarat in the last decade. One can love it, hate it, utilise it as an
opportunity or discard it as unnecessary hype, but India Inc can
certainly ignore it no more.

Though Modi-bashers will completely pooh-pooh the event as having
failed in achieving what it tom-tommed. A serious business mind may
find the astronomical MoUs as unreal.

The most striking aspect of the decade for Gujarat is the popular
perception of ‘emergence of Gujarat’ as the right state to do business
with. One cannot dispute the fact that in most urban houses across the
country, drawing room and even kitchen conversations have been
peppered with mentions of ‘how easy it is to do business in Gujarat!’
These summits may have amplified these views.

But for those involved in the business of business know well that
Gujarat and its prosperous communities were always conducive to
entrepreneurship. Prosperity has been in Gujarat much before the
summits. But marketing and positioning their achievements wasn’t the
forte of the state government.

That mantle was donned at an opportune moment by a resurgent Narendra
Modi government in 2003.

High on the landslide victory of 2002, Modi decided to take an unusual
plunge in 2003 by hosting a B2B (business to business) conclave in
Gujarat with some modifications. Such meets, though extremely vital
for businesses, were invariably hosted by industry federations and at
best, supported by the state and central governments.

But in Gujarat, a ‘Modi’fied version of this age-old concept was
adopted where in the state government itself hosted the event, invited
companies to explore investment opportunities in the region, and in
the process, interact and of course do business with existing
interests in the state.

Thus was born Gujarat government’s biennial Vibrant Gujarat Business
Summit 2003…and the rest is history.

What initially started as a platform for companies from different
parts of the country to meet, swiftly metamorphosed into a showcase
international event, with participation from different countries.

Very distinct political benefits to Modi reflected in consecutive
election results. At the last count, 80 countries are slated to
participate in VGGIS 2011.

“To begin with, it was a domestic event but now it is global. We have
increased the reach and horizon substantially. Earlier it was only
investment centric, now CM wants Gujarat to become a global
destination. This time, knowledge sharing is the mainstay,” minister
of state for industries, Saurabh Patel says.

At the event’s core is the activity to sign Memorandum of
Understanding (MoU) between Gujarat government and private companies.
The MoUs promise to invest a certain amount to build a business
facility in the state and the government’s pledge to facilitate their
ventures by facilitating land acquisition, other infrastructure like
road, power, water etc.

In 2003, it started low key, with reluctant participation from India
Inc, uncomfortable with fresh allegations of 2002 communal riots on
Modi.

These difficult memories faded for key business honchos by 2005 as
hype started to build up about ‘big opportunities’ here. By 2007, the
who’s who of India Inc descended to grab a pie of what Gujarat had to
offer. And by 2009, the hype almost choked other states, Karnataka for
one, into starting their own version of such a summit.

“VG summits are a very successful ‘destination branding’ exercise.
This concept is usually talked about in context of tourism, but
Gujarat has successfully positioned itself in totality,” says Prof
Abraham Koshy, faculty at the Indian Institute of Management,
Ahmedabad, and an eminent branding expert who has co-authoured
Marketing Management — A South Asian Perspective with global marketing
guru Philip Kotler.

“Everything about Gujarat is branding. The important thing is that
these initiatives are not discarded after one attempt, it is
sustained. The state is teaching the rest of the country how to
utilise the power of branding,” he adds.

Statistics of cumulative investments worth Rs19.66 lakh crore have
been released by the state government over the past seven years.
Intense debate rages amongst economic analysts and observers over the
implementation of these MoUs —with government promising 69% in
advanced stages of implementation while independent agencies and
skeptics pegging it around 25%.

“VGGIS sends a message to the international community that something
dynamic is happening here and there is official recognition of it. It
gives coherence to Gujarat; unpleasant footnotes are diminishing.
However, Gujaratis were always doing well in business. Not one man can
change it,” says sociologist Shiv Viswanathan.

As VGGIS ’11 sets sail today, DNA examines the defining points that
changed greater perceptions and larger initiatives of the government
that facilitated investments in the state.

GIft from Vibrant Gujarat Global Investors’ Summit: SEZ, SIR, and DMIC
Published: Wednesday, Jan 12, 2011, 15:49 IST
By Team DNA | Place: Ahmedabad | Agency: DNA

The end of this decade is a good time to ruminate on all these
acronyms we have been tossing at you over the last few years; and how,
if at all, they have made a difference.

SEZ (Special Economic Zone), SIR (Special Investment Region) are
amongst the major initiatives aggressively heralded by the
administration as growth engines, in a bid to boost rapid industrial
development.

Between 2004 and 2008 60 new SEZs have been given in principle
approval, with great impetus on manufacturing. As per the latest
information available, 33 SEZs have been finally notified. Of these,
only four have commenced operations.

Before the global economic downturn in 2008, SEZs were hot properties
for large-sized industrial investments. Land was being doled out, with
lucrative tax exemptions and largely export oriented. Industry swooped
in.

The main buzz at VGGIS 2007 was SEZ. Every company worth reckoning in
the market wanted an SEZ associated to its name.

Announcement of new SEZs were ‘leaked’ out at the rate of saucy
Bollywood scandals; and treated at par. Real estate, IT, education,
tourism, chemical, pharmaceutical and even sports… we have them all.

When the American and European markets collapsed, along went our West-
looking SEZ story. At least five SEZs have been withdrawn.

No new SEZs have been announced in the last two years and even now as
the dust of downturn is lifting, the acronym has not returned in India
Inc’s priorities.

“The shakeout is normal,” Prof Koshy says. “Businessmen get into it to
exploit the loopholes in a policy. Eventually, only the serious
players remain, the fringe players drop out,” the marketing guru
points out.

GIFT — Gujarat International Finance Tec-City was announced in 2007 as
an ambitious and aesthetic conglomerate of buildings for high-end
business offices – a demand expected to be fuelled by the MoUs signed
in the consecutive VGGIS.

Almost four years after the announcement, the construction is now
expected to commence in 2011.

February 2010 | iNDEXTb

Gujarat
The Global Investment Hub

From the Desk of Minister of State – Industries

Contents

From the Desk of
Minister of State -

Industries 1

Top News 2

Investment by Gujarat
Companies 2

Events Since December
2009 3

Focus Sector of the
Month – Plastics 4

International
Delegations 5

Upcoming Events 6

I am glad to know that iNDEXTb is bringing out a monthly
newsletter on promotion and investment activities in Gujarat
leading to the 5th biennial Vibrant Gujarat 2011 to be held on
11-13 January 2011 at Mahatma Mandir, Gandhinagar.

Vibrant Gujarat 2011 Summit will encompass the theme “The
Global Business Hub” – and would create an ideal platform for
investors and opinion makers to forge partnerships by exploring
new ideas and opportunities in emerging sectors and emerging
geographies.

The 4th biennial Global Investors Summit 2009 held during 12-13
January 2009, based on the theme-Gujarat Going Global, was a
resounding success with representation from 45 countries and
presence of captains of Indian Industry. Japan was the partner
country in this summit. 8,662 MoUs amounting to US$ 243
billion were signed. Political dignitaries from America, Europe,
Asia and Africa participated.

I am sure, this inaugural newsletter will be of particular interest
to all those connected with Gujarat in one way or the other. I
convey my best wishes to iNDEXTb in its endeavor.

Issue 1

Shri Saurabhbhai Patel
Minister of State for Civil Aviation, Cottage
Industries, Salt Industries, Printing &
Stationary (Independent Charge)
Industries, Mines, Minerals, Planning,
Finance, Energy and Petrochemicals

Top News

2

Japan Plans eco-township at Dholera

Japan International Cooperation Agency (JICA) has shown interest
to set up an eco-township at Dholera spread over an area of 500
acres with an investment of Rs 5,000 crore. This eco-township is
planned to be developed on the Kitaykyushu eco-town model.
Investment of Rs 10,000 crore in commercial construction at
Sabarmati Riverfront

Ahmedabad Municipal Corporation has started the procedures to
allot 13% of land which will attract investments of more than Rs
10,000 crore in construction at the riverfront.

Investment by
Gujarat Companies

Gujarat NRE to invest Rs
2,200 crore in Australia

Gujarat NRE Group has
decided to invest around
Rs 2,200 crore in its
Australian Operations

Gujarat NRE Minerals
(GNM). GNM is primarily
into extracting coking coal
from blocks it owns there.

The Vibrant Gujarat 2011 will be held at the new Convention Center-
Mahatma Mandir. The
main convention hall would have the capacity to accommodate 5,000
people.

Plastic Park at Sanand

The Gujarat State Plastics Manufacturers Association (GSPMA)
has announced the setting up of Plastic Park at Sanand. The park
is planned over 100 acres and would house around 1,000 plastic
units.

World Bank funds for Road Development

World Bank has praised Gujarat’s road network and has offered
$ 500 million to construct, widen nearly 1,800 km of state
highways.

Larsen & Toubro to invest Rs 5,000 crore in Gujarat
Engineering giant Larsen & Toubro plans to invest Rs 5,000 crore
on setting up seven new factories in Gujarat.
Foundation stone laid for forging plant at Surat
Nuclear Power Corporation of India Limited and Larsen &
Toubro in Joint Venture have laid foundation stone for new steel
and heaving forging plant at Surat to produce special steel and
sand ultra heavy forgings. The facility will have the capability to
produce ingots weighing up to 600 MT.

Mahatma Mandir Ground Level View

(Above) Rear View (Below)

Events since December 2009

3

Hon. Chief Minister at IndiaChem 2009
ENGIMACH 2010, International Industrial Exhibition was
held in Ahmedabad from 7th to 11th January 2010.
Engineering, machinery, machine tools, automation,
material handling equipment, hydraulics, pneumatics and
other industrial products and technology were under
display.

PLEXPOINDIA 2010-5th National Plastics and Packaging
Exhibition was held in Ahmedabad from 9th to 12th January
2010. The exhibition was organized by Gujarat State Plastic
Manufacturers Association (GSPMA) and supported by
iNDEXTb. The Hon. Chief Minister inaugurated the four day
event which saw participation from about 400 exhibitors
including international exhibitors from China, Taiwan,
Singapore, Canada, United States, Italy, Switzerland and
Korea.

Gujarat Maritime Horizon Conference 2010 was held at
Ahmedabad on 10th January 2010. The conference
deliberated on the current issues and future challenges
pertaining to the maritime, cargo and logistics sector in the
state.

Global Economic Summit 2010: The Government of Gujarat
participated in the Global Economic Summit 2010 organized
by All India Association of Industries in cooperation with
WTC Mumbai held in Mumbai during 20th to 22nd January
2010.

INDIACHEM 2009

An international exhibition and
conference on specialty, fine
chemicals, agrochemicals and
colorants was held in Ahmedabad
from 12th to 14th December
2009. The event was organized by
the Federation of Indian
Chambers of Commerce and
Industry, Government of India
and Government of Gujarat. The
three day event deliberated on
the issues and developments
concerning the industry and also
provided a platform for
networking and business
promotion.

Indinox-Stainless Steel Fair 2010: A tradeshow termed as
“Maha-Kumb for steel industries”, where global stainless
steel manufacturers and businessmen get new exposure,
business growth and opportunities to explore new areas
for business expansion. Gujarat has rolled out the red
carpet for stainless steel manufacturers by announcing
special incentives and separate policy for them. 800
domestic exhibitors and 50 international exhibitors made
their presentation in the first of its kind fair during 16th to
19th January 2010 in Ahmedabad.

Partnership Summit 2010: The Government of Gujarat
participated as a Contributing Partner in the Partnership
Summit 2010 organized by Confederation of Indian
Industry (CII) held from 22nd to 24th January 2010 at
Chennai.

58th Indian Foundry Congress: The 58th Indian Foundry
Congress organized by Institute of Indian Foundrymen,
Western Region and supported by Government of Gujarat
was held on 5-7 Feb 2010 at Gujarat University Exhibition
Hall, Ahmedabad. Along with the Congress, concurrent
events Cast India Expo, Techmart, CEO Meet and Cast
Source Meet were organized.

Focus Sector of the Month – Plastics

4

Indian Plastic Industry

The plastic processing sector in India comprises about 55,000
units employing around 3.6 million people – directly and
indirectly; Gujarat contributes about one-fifth of the total number
of units in the country. They are involved in producing variety of
items through injection moulding, blow moulding, extrusion and
calendaring.

The country in general and Gujarat in particular possess necessary
technical skills to produce high quality plastic goods, required
machinery, efficient moulds and dyes. In view of the versatility of
operations and low cost of production, the state has been ideally
suited to serve as a sourcing base. Major international companies
from various segments of industry including automobiles,
electronics and communication, food processing and packaging
have set up large manufacturing plants in the country and have
helped to develop the market. India is emerging as one of the
fastest growing markets and is expected to grow annually by 12 to
15% in the coming years.

Plastic Industry contributes to 2.17% of India’s total exports and is
worth 3,513 million USD.
Exports

The export of plastic products has been identified as a thrust
area. Plastic Industry contributes to 2.17% of India’s total
exports and is worth 3,513 million USD. Gujarat has the second
highest number of exporters. There has been an annual growth
of 20% in exports of plastic products. Exports have been to over
150 countries with major trading partners being USA, United
Arab Emirates, Italy, United Kingdom, Belgium, China, Hong
Kong, Germany, Saudi Arabia, Singapore, Sri Lanka, South Africa,
Russia, Netherlands, Turkey, Egypt, France, Australia, Kenya and
Oman.

Domestic demand

There is huge potential for development of Plastic Processing
Industry in India. The present per capita consumption of plastic
in India is only 6 kg as against 30 kg in China and 80 kg in
developed economies. Gujarat’s per capita consumption of 8 kg
is higher than the national average. With growing per capita
income and a favorable demographic profile, demand for
plastics in India and in Gujarat is expected to show strong
growth. India is also ahead in recycling of plastic products. The
capacities built in most segments of this industry coupled with
inherent capabilities have made Gujarat capable of servicing
overseas markets.

Gujarat – a hub of the Plastic
industry

The potential of the Plastic industry
has motivated Gujarat entrepreneurs
to acquire technical expertise,
achieve high quality standards and
build capacities in various facets of
the booming plastic industry.
Phenomenal developments in the
plastic machinery sector coupled with
matching developments in the
petrochemical sector, both of which
support the plastic processing sector,
have facilitated plastic processors to
build capacities to service both
domestic and export markets.

15% 62%
10%
13%

Gujarat Maharashtra
West Bengal Other States

5

Interest Subsidy on eligible parameters
Venture Capital & Patent Assistance
Quality Certification & Skill Enhancement
Technology Acquisition Fund
Support to R&D Institutions
Market Development Support
Support for Vendor Development
Support to auxiliary industries for value addition
Cluster Development in PPP mode
Rehabilitation of Sick Units
Promotion of specific sectors
Policy support for Plastic industry in Gujarat
The Industrial Policy 2009 of Gujarat specifically focuses on
socio economic development of the state. Gujarat
government understands that for plastic industry to flourish,
the MSME sector has to be supported and various
provisions have been made for the same.
Gujarat rich in raw materials
The availability of polymers has played a pivotal role in the
Gujarat growth story. Gujarat is a net exporter of certain
polymers. The present installed capacity of polymers is
around 6.5 MMT which is likely to be 8.5 MMT by 2010. The
production capacity of major suppliers of polymers viz.
PE/PP/PVC in India is 4.8 MMT of which 3.5 MMT is
produced in Gujarat.

Some facts about Gujarat

Gujarat contributes more than
60% of Indian petrochemical
industry.

70 % of polymers are produced in
Gujarat

Contributes one-fifth of the total
number of SMEs in the plastic
sector in the country
Gujarat plastic industry is
witnessing an annual growth of
more than 15 %.

Gujarat’s share in exports of
plastic is around 15 %.

Gujarat share in the production of
plastic products is around 14 %
Gujarat has the highest plastic
machinery manufacturers.

Gujarat Plastic Industry – Way Forward
The conventional plastic and synthetic polymers are
persistent in the environment. Therefore, improperly
disposed plastic materials are sometimes a significant
source of environment pollution. This has resulted in
mounting worldwide concern over the increasing use of
plastics and has initiated an important drive for
development of bio-degradable plastics. The Research &
Development on bio-degradable polymers is critical – the
industry should join hands with R&D institutions to
augment research activity to ensure cleaner and greener
development.

International Delegations
Delegation from Taiwan

A 15- member business delegation led by Mr. Theodore M.H. Huang,
Chairman, Chinese National Association of Industry
and Commerce, Taiwan came to Gujarat for a 3-day visit to discuss and
understand state business policies & environment
and explore possible avenues of co-operation between Taiwan and
Gujarat. Delegates from various sectors including real
estate, industrial park development, telecommunication, food were part
of the business delegation.
The delegates had a very constructive meeting with the Honorable Chief
Minister where possible avenues for collaboration
in education, renewable energy, financial services, electronics &
hardware and information technology were discussed.
The delegation also met with leading industrialists and businessmen of
the state over dinner. The delegates ended the trip
with a visit to the Vibrant Gujarat ‘International Kite Festival’ at
the Sabarmati riverfront on 14th January.
The delegates expressed that there is a huge potential for Taiwan
industries to invest in Gujarat in the areas of Electronics,
Information Technology, telecommunication and hospitality sector in
the coming year.

UPCOMING EVENTS

6

Udyog 2010

Government of Gujarat is supporting and participating in the Udyog
2010 organized by The Southern Chamber of Commerce and Industry
to be held on 12-16 March at Surat.

Other Seminars and Conferences

Agro and Food Processing February 2010

Education March 2010

Defense Requirements (Offsets and JVs) March 2010

Clean Technology March 2010

Industrial Park, Logistics Park, SEZ, SIR March/April 2010

Port-led development April 2010

Healthcare April 2010

Mineral based (Cement) and Mineral Sector
(GMDC)

May 2010

Power-Renewable May 2010

Tourism June 2010

Contact Us

Industrial Extension Bureau
Block No 18
2nd Floor, Udyog Bhavan
Sector 11, Gandhinagar – 382010
Gujarat, India

+91 79 232 50492/3
+91 79 232 50490

***@indextb.com

Find us on the Web:

www.indextb.com
www.vibrantgujarat.com

iNDEXTb

Industrial Extension Bureau
(A GOVT. OF GUJARAT ORGANISATION)
ISO 9001:2000 CERTIFIED
Knowledge Partner


Vibrant Gujarat Global Investor Summit

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Tagged since May 2009.

Vibrant Gujarat Global Investors Summit or VGGIS is a biennial summit
organized by Gujarat government to attract foreign investment for
development of Gujarat. Based on the theme–Gujarat Going Global and
aimed at bringing together business leaders, investors, corporations,
thought leaders, policy and opinion makers; the summit served as a
perfect platform to understand and explore business opportunities with
the State of Gujarat. First VGGSIS started in 2003 and 4th VGGIS
completed during 12–13 January 2009.

* VGGIS 2003 – Signed 76 MOUs worth US $14 billion
* VGGIS 2005 – Signed MOUs for setting up projects worth INR 870
Billion
* VGGIS 2007 – Signed 343 MOUs worth Rs 461835 crores. This
includes Rs 14811 crore investments promised in 21 MoUs signed at an
IT Summit. On the top of the investment brackets were 28 MoUs for
Special Economic Zones with an investment tally of Rs 170,889 crores.
* VGGIS 2009 – Signed 8668 MOUs having total investment of Rs.
12,24,482 crores.

Vibrant Gujarat Global Investors Summit 2003 [1]

Vibrant Gujarat: Global Investors’ Summit 2003 was organized during
world famous festival of Gujarat – Navratri , during which the State
is at its best. This time a unique attempt was made by the State
Government to showcase the culture, tradition and entertainment
prevalent in Gujarat by blending them with culture, trade and
enterprise.

Industrial Extension Bureau acted as a nodal agency for the State
Government during Vibrant Gujarat : Global Investors Summit (September
28 to October 2, 2003) organized at the two major commercial cities of
the State–Ahmedabad and Surat in association with the Government of
India, UNIDO and FICCI & CII.

The conventions during the programme had sectoral sessions focus
sector – Industrial Investment, Agro-Processing, Biotech- Pharma,
Natural Gas and Oil, Infrastructure, Mining, Tourism, Apparels and
Gems-Jewellery at Ahmedabad and sectoral sessions on Garment &
Textiles and Gems & Jewellery at Surat. There were also exhibitions in
above sectors at respective places in Ahmedabad and Surat to provide a
platform for showcasing products and services. One to one discussions
between the prospective investors, government officials and the
project promoters took place.

176 project proposals were compiled and were then scrutinized for
their viability. Internationally reputed credit rating agencies like
CRISIL and CARE lend their support as the financial advisors to these
projects. Leading private and public sector banks of India like ICICI,
IDBI, State Bank of India, Bank of Baroda, State Bank of Saurashtra,
Corporation Bank, IDFC and NABARD have extended their support for
financing these projects. CRISIL also worked with iNDEXTb in
structuring these projects.

The Hon’ble Deputy Prime Minister of India, Mr. L K Advani inaugurated
Vibrant Gujarat: Global Investors’ Summit 2003 on 28 September
2003[2]. Mr. Narendra Modi, Hon’ble Chief Minister, Mr. Arun Shourie,
Mr. Ram Naik, Mr. Mukesh Ambani, Mr. A C Muthaih were the other
dignitaries present on the dais. Various sessions during the programme
were chaired by other hon’ble ministers from the Union and State
Government.

Large number of corporate leaders like Mr. Subhir Raha, Mr. C K Birla,
CEOs of multinational companies like Shell, British Gas, General
Motors, P&O ports, Niko & Steag and others attended the event.
International dignitaries like Mr. Larry Pressler, ex-US Senator; Mr.
Michael Clarke graced the occasion.

The Surat Summit, inaugurated by Hon’ble Union Finance Minister, Mr.
Jaswant Singh. was also equally impressive. Other dignitaries present
during the event were Hon’ble Union Minister for Textiles, Mr. Shah
Nawaz Hussain, Hon’ble Union Minister for Rural Development Mr.
Kashiram Rana, experts in textiles, gems and jewellery, senior
officials from State and Central Government. The attendance of
prominent industrialists and other business leaders from across the
country translated into a resounding success for the Surat Summit.

At the end of the event, 76 MOUs worth US $ 14 billion for investment
were signed.

Other Events organized during Navratri Festival were International
Convention on Reconstruction in Kutch District after Earthquake in
2001 and Celebration of Birth Anniversary of Mahatma Gandhi at
Porbandar–the birth place of Mahatma Gandhiji on his birthday
anniversary on October 2, 2003.

About 125 foreign delegates, 200 Non-Resident Indians, 200 leading
dignitaries and other participants from about 45 countries
participated in Navratri Festival and went back happily cherishing the
days of their life in Gujarat.

Vibrant Gujarat Global Investors Summit 2005 [3]

The two day Vibrant Gujarat : Global Investor’s Summit 2005 was a one-
of-its- kind event in India. It got off to a scintillating start with
the Honourable Vice President of India, Shri Bhairon Singh Shekhawat,
inaugurating the ceremony. More than 6,000 people attended the
inaugural ceremony. The top dignitaries present at the ceremony
included : industry representatives, foreign multinationals, NRIs as
well as the business ___ from various sections of the society, India.
Mukesh Ambani of Reliance, Gautam Adani of the Adani Group, Shashi
Ruia of Essar, Nigel Shaw of British Gas and so on. As a reflection of
faith in the state and its potential to become a leading global
destination for investment in the time to come, MOUs for setting up
projects worth INR 870 Billion were signed on the first day itself.

To invite participation from global players, five delegations Led by
senior Ministers __ of Gujarat Cabinet visited different parts of the
world to hold discussions with NRIs, NRGs (Non Residential Gujaratis)
and foreign investors. From amongst them, several investors and NRIs
participated in the event.

The summit was planned to coincide with Gujarat’s famous Kite
festival, Uttarayan, which marks a change of season with the movement
of the sun into the northern hemisphere. Sectoral theme pavilions
showcasing the strength of Gujarat in the relevant areas were
developed. Major industries, Government corporations and Institutions
participated in each sector. The event also hosted an exhibition along
with seminars on the focus areas for investment in the state. These
were IT, Biotech, Agro, Energy, Gas, Petroleum, Non-conventional
Energy, Port & port-Led industries, Financial Services, Textiles and
Apparels, Gems & Jewellery, Tourism etc. The exhibition was held at
the Science City which have more than 200 exhibitors from various
sectors. The exhibitions attracted large number of visitors from
within the state and outside.

Facility for arranging one to one meetings available where senior
officers from the Industries and other departments, representatives of
UNIDO and FICCI were present.

On the first day, the focus sectors were Information Technology,
Biotechnology, Agro, Energy, Gas, Petroleum and more importantly Non-
conventional Sources of Energy. Seminars and meetings were held in
three different halls at the Science City. Potential investors and
industrialists had one-to-one meetings with senior officials of the
state government and ministers of the cabinet.

The concluding day maintained the same momentum and enthusiasm as that
of the first day with MOUs being signed by Industry. Several new MOUs
were signed in the focus sectors of the day–Agriculture, Engineering,
Tourism, Urban Development, Chemicals and Pharmaceuticals, Port & Port
Led development, Textiles, Gems & Jewellery.

By the time the Summit concluded on the second day, investments worth
INR 1060 Billion in the form of MOUs were signed with 226 units. The
concluding ceremony was graced by the Union Minister for Commerce &
Industry Shri Kamal Nath,

Of the 226 MOUs, Engineering, Gas and Port sectors attracted the
maximum number of investment proposals, followed by Agriculture, Urban
Development, Tourism, Chemicals & Pharmaceuticals, Textiles, Gems &
Jewellery, IT and Biotechnology sectors. Besides these, four
industrial majors–Torrent, Essar, Welspun and Adani, have Ledged
investments of INR 120 Billion in gas-based or lignite-based power
projects, assuring self-sufficiency to the state for future in the
most important sector – power.

Over all, the event evoked an excellent response amongst in
industrialists in India and foreign countries in particular in Gujarat
in general.

Vibrant Gujarat Global Investors Summit 2007 [4]

The Government of Gujarat hosted the Vibrant Gujarat Global Investors’
Summit 2007 on January 12 and 13 at Ahmedabad in which Gujarat emerged
as a Global Investment Destination and justified its role as the
Growth Engine of Indian Economy. This was the third such Summit
organized by the state government with the first Summit held in 2003
and the second held in 2005.

In all the Summits, Gujarat was showcased as an ideal investment
destination, both for Indian and Foreign investors. The emphasis on
all these Summits was to invite investors to come to Gujarat to see
and experience the business friendly environment that prevails in the
state and decide to invest here. Prospective investors were extended
two significant messages: 1. In Gujarat there is only Red Carpet and
no Red Tape. 2. It is where Investors can sow a rupee and reap a
dollar as returns.

In a dramatic change of strategy to get these messages across to
potential investors, prominent industrialists from the state undertook
road shows abroad, instead of government officials, to woo investors
and to highlight the advantages Gujarat has to offer.

Detailed investment opportunities in different segments of focus
sectors were prepared and supplemented by individual project profiles
to give comprehensive information about the state. These focus sectors
included Agro & Food Processing; Engineering, Auto & Ceramics;
Biotechnology; Textiles and Apparels, Gems & Jewellery; Tourism; IT;
Power, Oil & Gas; Chemicals, Petrochemicals & Pharmaceuticals; SEZ &
Port-Led Development and Urban Development.

The Vibrant Gujarat Global Investors’ Summit 2007 event was spread
over a period of 4 days. On 10 January 2007, a multimedia exhibition-
Eternal Gandhi–on life and philosophy of Mahatma Gandhi was
inaugurated at Science city, Ahmedabad. On the 11th of January, an
exhibition showcasing the strengths and advantages of the various
industries in Gujarat named “Gujarat Discovered” and the International
Kite festival at the Sabarmati Riverfront Development site was opened.
The 12th of January saw the inauguration of Global Investors’ Summit
at the Science city.

Vibrant Gujarat Global Investors Summit 2009 [5]

The Government of Gujarat organized the 4th biennial Global Investors’
Summit 2009 during 12–13 January 2009. Based on the theme–Gujarat
Going Global and aimed at bringing together business leaders,
investors, corporations, thought leaders, policy and opinion makers;
the summit served as a perfect platform to understand and explore
business opportunities with the State of Gujarat.

Vibrant Gujarat: Global Investors’ Summit 2009 had resounding success
this year too as it had been in the past. During the course of two
days, 8662 MoUs worth US$ 243 billion (over Rs. 12,000 Billion) are
signed. The summit witnessed participation of delegates from 45
countries, amounting to over 600 foreign delegates. The who’s who of
the Indian industry were present, including Mr. Ratan Tata, Chairman,
Tata Group, Mr. KV Kamath, Chairman ICICI and President CII, Mr.
Mukesh Ambani, Chairman, Reliance Industries, Mr. Kumar Mangalam
Birla, Chairman, Birla Group, Mr. Shashi Ruia, Chairman, Essar Group,
Mr, Anil Ambani, Chairman, ADAG Group, Mr. Sunil Mittal, Chairman,
Bharti Enterprise among several other dignitaries. Several political
dignitaries from various countries such as Japan, UK, China, Russia,
Canada, Israel, Poland, Korea, UAE, Malawi, Indonesia, Oman, Kenya,
Italy, Singapore, Trinidad & Tobago, Vietnam, Uganda, Zimbabwe and
Maldives had participated

Japan was the Partner Country to this Summit. This being the first
time any country has agreed to partner with a State of another
country. Japan External Trade Organisation (JETRO) was designated as
the partner organization. Japan also reciprocated Gujarat’s
initiatives for mutual economic cooperation by sending two senior
level delegations, led by Mr. Hideaki Domichi, the Ambassador of Japan
to India and Mr. Heizo Takenaka, Former Minister of Economic & Fiscal
Policy of Japan. The maximum number of delegates was from Japan,
totalling to over 70 members. Another major delegation was from USA.

The exhibition was organized in a grand way, spread over an area of
19,200 sq. mts. There were 232 stalls, quite impressive and
informative, having participation of eminent companies of India. 16
international countries participated in the exhibition from countries
such as Japan, Korea, UK, Kenya, Arab League, Russia, Netherlands,
Trinidad & Tobago, Czech Republic, El Salvador and Uganda.

Earlier Summits were organized in the year 2003, 2005 and 2007. The
2003 Global Investors’ Summit was held coinciding with the glorious
Navratri Festival where a total of 76 MOUs worth USD 14 billion were
signed. The 2005 Summit saw signing of 226 MOUs garnering an
investment of USD 20 billion. The year 2007 Summit, resulted in
signing of 675 MOUs worth USD 152 billion. In the year 2009, the
initiative that began six years ago, was intensified and the state
propelled in to the next stage of the development process, focused and
intensive growth in the socio-economic index.

References

1. ^ Vibrant Gujarat Global Investors Summit 2003
2. ^ http://www.telegraphindia.com/1030929/asp/nation/story_2412180.asp
3. ^ Vibrant Gujarat Global Investors Summit 2005
4. ^ Vibrant Gujarat Global Investors Summit 2007
5. ^ Vibrant Gujarat Global Investors Summit 2009

External links

* Gujarat International Finance Tec-City Official Website
* GIFT Downloads
* Gujarat2050 Map showing major development areas

Retrieved from “http://en.wikipedia.org/wiki/
Vibrant_Gujarat_Global_Investor_Summit“

Categories: Economy of Gujarat

* This page was last modified on 23 December 2010 at 04:27.
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