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Gujarat's Vision 2010 means just 34 projects

Joydeep Ray in Ahmedabad | September 03, 2003 10:57 IST

Three years have passed since the former chief minister of Gujarat, Keshubhai Patel, conceived the much-talked Vision-2010 plan to boost infrastructure development by attracting fresh investments to the state.

And what's there to show? Just 34 projects have been awarded for implementation from 383 earmarked by the former Cabinet.

The 383 projects as envisaged by the state were worth of Rs 1,17,000 crore (Rs 1,170 billion) and targeted to be implemented by the year 2010.

But the tardy implementation of these projects and the reluctance of private companies to participate in them along with the state means investments are worth just Rs 43,000 crore (Rs 430 billion) to date.

In this too, the major chunk of work is yet to be done and only a fraction of this amount has gone to the state exchequer.

The state government had handed the responsibility for implementation of these projects to the state-run enterprise, Gujarat Industrial Development Board, which is headless at present as the state is yet to find out a full-time chief executive officer.

A senior bureaucrat, Rajesh Kishore, has been operating as acting-CEO. Kishore is loaded with other responsibilities too.

In June last year the Confederation of Indian Industry had talked of helping the state to implement these projects and bring in fresh private participation.

For this, the CII Gujarat chapter created the Gujarat Infrastructure Development Council. This is now almost defunct.

The incumbent Modi government seems to have lost interest in these projects. Several queries have also been raised at various quarters as regards the feasibility of these projects. Moreover, the state exchequer does not have the money to sponsor the plans either.

As a result, GIDB also has stopped conducting feasibility studies of the major projects, while studies are on for only 39 projects that entail an investment of Rs 15,400 crore (Rs 154 billion).

"In the road sector alone, the Vision-2010 document envisaged investments of Rs 20,000 crore (Rs 200 billion). Thus far only seven projects worth Rs 400 crore (Rs 4 billion) have been completed while the major projects like the Ahmedabad-Mehsana Road and the Chhayapuri project have recently been implemented. In the last three years only Rs 6,900 crore (Rs 69 billion) worth of investment plans have been processed and it includes the already completed projects," said a state government official, requesting anonymity.

Thanks, the Golden Corridor project, work on the Ahmedabad-Vadodara Expressway has been completed, while work on the Vadodara-Surat stretch, which is also a part of this corridor, is being implemented.

There are expectations that the road will be ready in the next two years but again, this is the Centre's baby and the state has only meagre participation.

Vision-2010 also failed to attract major investments in the ports sector which was then projected as the most important sector to invite new investments and private participation.

Except for Adani Ports and the Nikhil Gandhi-owned Pipavav Port, no private investment has been made. The Gujarat Maritime Board, the nodal agency for the ports sector, has failed to attract private companies to develop new ports in the state.

Ports like Simar, Vansi-Borsi, Mithivirdi and Bedi have been lying without any takers. To its credit, since the last three years the Gujarat Maritime Board has been searching for private participants.

"A global tender notice was published for Mithivirdi but no sound proposal came in and same is the fate of the three other ports. Bedi port was proposed by GMB to be developed in joint sector but GMB is yet to receive any detailed offer for this. Hence, the plan on this port has been shelved for the time being," said the official.

Two ports costing Rs 7,200 crore (Rs 72 billion) are the only ray of hope, which are at present being constructed.

The power sector has also failed to draw major investments though the Vision-2010 document had projected this sector as one of the three key areas.

This, say industry observers, is because of state apathy. Only two projects, the gas-based Dhuvaran project and the Akrimota thermal power project under implementation.

"There is no marketing initiative except taking part in the usual business shows and exhibitions in New Delhi twice or thrice in a year. The involvement of organisations such as the CII or FICCI is also very limited. The CII was planning to extend its hand in the implementation of these projects but after the change of guard in Gandhinagar, the cells created for this are defunct," added the official.


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