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STATEMENT ISSUED BY SHRI SHAKTISINH GOHIL,

STATEMENT ISSUED BY SHRI SHAKTISINH GOHIL, SPOKESPERSON, AICC

                                                                                                                        10TH January, 2017

The stage is all set for the eighth edition of Vibrant Gujarat Summit. During these years the colour and complexion of the event has changed from an investment platform for Gujarat to investment driver for the country on the way of becoming Davos.

The nation is stuck in an economic crisis and has become more acute since the Prime Minister announced demonetisation of Rs 500 and Rs 1000 notes in circulation. On one hand, the nation is still struggling to come to terms with the aftermath of demonitisation and on the other hand BJP government in Gujarat is busy celebrating so called festivals like Vibrant Gujarat summit, spending not lakhs but Crores, collected from people.

Modi ji who initiated this summit  as the Chief Minister of Gujarat in 2003, launched the 2015 edition as the Prime Minister of India. This is for the second time that he is inaugurating vibrant Gujarat as Prime Minister. This clearly shows that despite moving to the centre as the PM he continues to call the shots in Gujarat and this summit by all means is Modi’s affair. 

To understand the failure of such highly PR driven initiatives it is important to look at the claims made by the government in 2015 and what materialised for the state. To avoid scrutiny of its claims, the government did not announce details MOUs and investment it was left to the investors. However, the then CM Anandiben Patel had quoted private firms’ claims that 21304 projects would bring investment of 25 trillion because of 2015 summit. 

Gujarat Government’s claim of investment through Vibrant Summit is Rs.84.55 lakh crore MOUs signed from 2003 to 2015. But The Real Authentic Industries Commissioner Gujarat Data says Industrial Approvals in Gujarat Period from 01/01/1983  to 31/08/2016 
has Progress As on 30/09/2016 
TOTAL STATISTICS (IEM + LOP + LOI) is only of 951980 ( RS in crore)
Link: http://ic.gujarat.gov.in/?page_id=3137

Gujarat government MOU data and Industries Commissioner Data has huge difference.MOUs claims Investment close to India’s total GDP size

Gujarat official GSDP as per the budget documents in 2015-16 was Rs.9,84,971 crore so why this investment of Rs. Rs.84.55 lakh crore MOUs do not reflect in authorized data. Economics says that compare to your investment your annual turnover remains two to four times high per annum. If Rs.84.55 lakh crore was invested in Gujarat why does it not reflect in the real GSDP growth rate. This clearly rubbishes the claim of Gujarat government citing huge investments. 

 

GSDP Growth Rate and Size :

State BJP government makes high claims on the economic growth of the state through investment made in the Vibrant Summit MOUs  but as per the official records published in the budget the state has witnessed lowest Gross State Domestic Product(GSDP) rate in the last ten years according to the Statement under Financial Responsibility Act(FRA) published with the last budget. While the same statement predict that the Gujarat’s public debt will cross whopping Rs.2 lakh crore. If Gujarat Government’s claims of investment are truethen why is the growth rate going down???

Year

State GSDP Growth Rate @ current Prices

The constant prices estimates GSDP growth rate

2010-11

20.9%

-

2012-13

17.6%

10.8%

2013-14

13.3%

8.3%

2014-15

11%

7.7%

2015-16

10%

6.7%

 

Link:- 
http://financedepartment.gujarat.gov.in/Documents/34%20%20Socio%20Economic%20Review%20(English).pdf

As per the official figures given by the state government the share of the primary and agriculture sector on which more than 50% of the working population remained engaged has gone down.

Year

Share of Primary Sector in State GSDP

Share of Agriculture Sector in State GSDP

2013-14

20.4%

16.2%

2014-15

19.8%

14.7%

As per the budget estimates the public debt in 2016-17 will be Rs. 2,02,978 crore.

 

FDI in Gujarat
2014-15 and 2015-16 2682 USA $ million only
Total Share in FDI 5.13%
Maharashtra 20.16%, Delhi 29.20%
Link: http://indiabudget.nic.in/es2015-16/echapter-vol2.pdf

Vibrant Gujarat is nothing but a platform for BJP's corruption and companies have used Vibrant Gujarat as a platform to inflate their share value and attract financial institutions for more funding. Also, there have been cases of land grabbing through such project announcements. 

In Power sector alone, Modi government claimed to have attracted investments through 31 MOUs worth Rs. 2,11,895 crore that would generate employment for over 58,000 people! This was announced by the State government in 2009 VibrantGujaratSummit. However none of these 31 MOUs have translated anything for the state and people of Gujarat. Rather, these companies have used Vibrant Gujarat as a platform to inflate their share values and attract financial institutions for more funding. Also, there have been cases of land grabbing through such project announcements. Details are annexed as annexure 1.

BJP government has given away precious land worth Rs 144.504 crore to a private company S E Transstadia at a throwaway price flouting all government norms. Details are annexe as annexure 2.

​Supreme Court had set aside the order of then Gujarat Revenue Minister Anandiben Patel to allocate land to Indigold. The Court in its judgment held the order illegal and ordered a compensation of Rs 3.15 crore. Gujarat Chief Minister and his ministers are indulging in corruption by giving prime land to industrialists at negligible price in the name of MOU of Vibrant Gujarat, this had been exposed by Supreme Court order. ​The Public Interest Litigation(PIL) was approved by a bench of SC of Justice Shri HL Gokhale and Justice Shri Chelameswar. The honourable Court has declared the minister’s decision as illegal and has also ordered deposit Rs. 3.15 crore compensation. Details are annexed as annexure 3.

 

 

 

ANNEXURE – I
Details of MOUs in the Energy Department


MOU Companies

Amount of Investments

Present Position

Abhinav Steels

Rs 1,250 crore

Not a single line on MOU’s with Gujarat, not even word Gujarat mentioned on this website

Universal Success Enterprise

Rs 50,000

Mother of all the fraudulent announcements. It has not invested even 1% (500 crore) of its promised amount in VGGIS 2009. Neither employed even 150 people.

Adani Power

Rs 12,550 crore

No plans emerging on Dhandhuka and Dahegam while government gave away land for free for Mundra project. Now, Adani don’t want supply electricity to Gujarat consumers

Antai Balaji

Rs 75 crore

No website

Avantha Power

Rs 6,000 crore

What is the status of 660X2 units proposed units at Amreli?

Balaji Group

900 crore

Has it acquired land and environment clearance? Where are the promoters from?

Canasia Power Corporation

6,500 crore

It didn’t try for long term PPA with GUVNL. Was it just an announcement or the Canada based company was confident of not getting deal with Govt promoted venture because of competition from Modi’s favorite power players?

GMR Energy

10,000 crore

The company is learnt to have wind up its plans for Gujarat. It also didn’t expressed any interests in selling power to GUVNL under long term PPAs.

GSEC & GSPC

19600 crore & 7,000 crore

Saurabh Dalal himself told Engineers Association of GEB in Surat last month that Gujarat has access power and there are no buyers. What is the need for GSEC and GSPC to burn such money? Action should be initiated against GUVNL, GSEC and GSPC top brass for waste of public money or conspiring with Modi government for fake claims and misguiding people of Gujarat.

MOU Companies

Amount of Investments

Present Position

Indian Power Corporation

6600 crore

The company claimed to be setting up power project in AHMEDABAD CITY!!!! Where?

Jagadhguru Technology Services

500 crore

Has this company acquired land and environment clearances? It does not even have its own website!

 JSW Energy

7000 crore

The company made this announcement and raised sizable funds from the market through IPO in 2009. But we are yet to witness any concrete initiatives.

L&T Power Development

15,000 crore

In exchange of this announcement GSPC gave orders worth crores to L&T for its KG Basin project, which is already incurring losses due to corruption. L&T Power Development has not invested even 1,500 crore for power generation in Gujarat

OPG Power Gujarat

12,000 crore

In how many years OPG Power is going to invest this much money in power projects? It has a negligible presence in Kutch. Does OPG Power has strength to raise Rs 12000 crore?

Patel Energy Limited

Rs 2,200 crore

It is learnt to be interested in working in Tamil Nadu and no concrete plans in Gujarat yet

Rachana Group

Rs 9,200 crore

No work initiated yet, it remains just an announcement

Reliance Cementation

Rs 1,500 crore

No work initiated yet

Responsive Ind

Rs 10,000 crore

No work initiated yet, company focusing on its core business activities in vinyl, PVC

SHAPOORJI PALLONJI & CO 

Rs 10000 crore

It has no plans to invest more than Rs 5,000 crore. It is commissioning 800 mw project to supply power to GUVNL

Shyam Century Infra

Rs 5,400

It is developing project in Chhattisgarh and so far no progress in Gujarat.

MOU Companies

Amount of Investments

Present Position

Sterling Power SEZ

Rs 800 crore

Yet another multi-crore announcement from Sterling Group but yet to move any of its power projects

Torrent Power

Rs 10,500 crore

It is planning project in Dahej SEZ and Surat (SUGEN). Torrent has no immediate plans to commission any other facilities in Gujarat. It is yet another fake announcement to please the state government for land grabbing and inflate share value

Tuff Energy

Rs 3,930 crore

No work initiated yet

Videocon

Rs 3,000 crore

Videocon is contemplating a power project in Gujarat for almost five years now. But it has just acquired land and has not done any ground activities yet. The company has used VGGIS platform just to inflate its share price by making same announcement again and again.

 

ANNEXURE – II

 

BJP government has given away precious land worth Rs 144.504 crore to a private company S E Transstadia at a throw away price flouting all government norms.

 

Gujarat BJP Government’s Cabinet flouted recommendations of Revenue and Finance Department to favour the private company set up just two years ago.

Government land is given to the highest bidder after inviting bids from interested persons. However, in this case, government had MOU in Vibrant Gujarat with the company on the conditions favouring the company and gave consent for land to the company measuring 37,388 Sq Mts in a highly developed and posh area.

As per the norm, the value of the land is decided by the Valuation Committee and it also decides lease rent. Accordingly, the Valuation Committee decided the rate of Rs 38,650 per Sq mt and consequently the plot of 37,388 Sq Mts was valued at Rs 144.504 Crore.

To give this land on lease the government should have fixed rent of Rs 21. 67 crore on the basis of 15 per cent of the market price. This is clear from the notes of the Finance and Revenue Department.

Going against the recommendations of its own departments, BJP govt has indulged into great corruption by fixing a rent of Rs 1 per Sq Ft and giving land on a lease of 35 years on rent of Rs 4.02 lakh instead of annual rent of Rs 21. 67 Crore.

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MOU-102010-42446-S
Industries and Mines Dept/S branch
Note for consideration by Cabinet

                Sub: To provide 37,388 Sq Mt of land to S E Transstadia Private Ltd, Mumbai for setting up a massive multipurpose sports stadium and recreation complex in Ahmedabad as part of  Memorandum of Understanding (MOU) of 2009.

Note :-
In 2009 Gujarat Govt,  Tourism Corporation of Gujarat and S E Transstadia Private Ltd, Mumbai signed an MOU for setting up a massive multipurpose sports stadium and recreation complex on the land of the Abad Dairy in the Kankaria area of Ahmedabad. The Executive Committee of the Gandhinagar Infrastructure Development Board  (GIDB) had detailed discussions about the project and its concessions agreements in its meetings from No 51 to No 55 held on 11/2/2009, 30/12/2009 and 27/04/2010.

Opinion of Revenue Department and Financial Advisor

Following conditions were mentioned for land allotment

(A)   There is provision of rent of 15 percent of market price of the land and it will be revised after review every five years.
                                In this case, valuation committee in its meeting on 6/7/2010 fixed rate of Rs 38,650 per Sq Mt. Accordingly the cost of 37,388 Sq Mt of land works out to be Rs 1,44,50,46,200. Annual rent of this land on the basis of 15 percent of the price works out to be Rs 21,67,56,930/-
(B)   There can’t be any change in the purpose of allotment or transfer of the land
(C)   Use of the land should start within two years
(D)   Land should be used for the purpose it is allotted
(E)   Without prior permission of Collector the land can't be sold, leased or transferred
(F)   The land will be regulated by conditions.

 

 

 


About allotting 4,02,294.88 Sq Ft of land of Ahmedabad city to S E Transstadia  Private Ltd, Mumbai for setting up multipurpose sports stadium and recreation complex.

Gujarat Government
Industries and Mines Department
Resolution No MOU-10-2010- 4244-S
Secretariat Gandhinagar
Dt 18-3-2011

Read:

1)   Letter of Gujarat Infrastructure Board Gandhinagar GIDB-55-EC-SEC-2010-814 of Dt. 26-4-2010
2)    Letter of Gujarat Infrastructure Board Gandhinagar GIDB-55-EC-SEC-2010-827 of Dt. 11-5-2010
3)   Confidential letter of General Administration Department MBP-10-2011(10)-KU of Dt. 24-2-2011

Resolution
After detailed considerations 37388 Sq Mt land ( 4,02,294,88 Sq Ft)  of Rajpur-Hirpur of City Taluka of Ahmedabad TP-2 Final Plot 178, 179, 180 and 181 is given at the rate of Rs 1 for one Sq Ft means it is given at the annual lease rent of Rs 4,02,294.88 for 35 years. It has also been decided to increase  the rent by 10 per cent every three year.

 

ANNEXURE - III

Supreme Court set aside the order of then Gujarat Revenue Minister Anandiben Patel to allocate land to Indigold. The Court in its judgment held the order illegal and ordered a compensation of Rs 3.15 crore. Gujarat Chief Minister and his ministers are indulging in corruption by giving prime land to industrialists at negligible price, this has been exposed by Supreme Court order.

            In this case, land was initially given to Indigold, but the company could not use it within the stipulated period. Instead of taking possession of the land from Indigold, then Gujarat Chief Minister Modi agreed to a proposal of Indigold to allow it to sell the land. Then Chief Minister who has made vibrant Gujarat even a major platform for his corrupt manipulations, forwarded this application to his confidant and then number two minister Anandiben Patel to give permission to Indigold to sell the land to Allumina. Officers of the Revenue Department and the Chief Secretary noted on the file that the land belonged to the government and Indigo had no right to sell it. Government should take possession of the land. However, there was a deal of crores of rupees and Revenue Minister Anandiben, overriding all objections, wrote on the file that as a special case Indigold was allowed to sell the two lakh Sq Mt of the land to Allumina.

The Public Interest Litigation(PIL) was approved by a bench of SC of Justice Shri H L Gokhale and Justice Shri Chelameswar. The honourable Court has declared the minister’s decision as illegal and has also ordered deposit Rs. 3.15  crore compensation.

Industrialists are given away the land which they want and large scale corruption is done. The Supreme Court order is an example of this.

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