Internal govt note shows 20.3% of 12,715 projects proposed at 5 VGSs were scrapped.
Even as the stage is set for the sixth edition of the Vibrant Gujarat Summit, which commences on January 11, Gujarat government’s own statistics reveal that past five Summits have been a mixed bag of results for the Narendra Modi-led state government.
An internal document prepared by the state government shows that while 40% projects, for which MoUs were signed at Vibrant Gujarat Summits from 2003 to 2011, have been commissioned as of December 2012, more than 20% projects have failed to fructify and have been shelved.
According to the document, MoUs for 12,715 projects were signed at the first five investment Summits, of which 2,586 projects have been dropped. At the 2003 Vibrant Gujarat Summit, MoUs were signed for 80 projects, of which 33 have been dropped. In 2005, 89 out of total 227 projects have been dropped. From the 2007 Summit, 141 out of 454 projects have been scrapped.
The 2009 Summit saw MoUs being signed for 3,574 projects, of which 781 have been dropped. Likewise, during the 2011 Summit, MoUs were signed for 8,380 projects, of which 1,542 projects have been scrapped.
The number of dropped projects has gone up in every Summit. However, as a result of signing of MoUs for higher number of projects, the ratio of dropped projects has come down over the years.
The note also shows that an estimated 40% of the projects have been commissioned, whereas around 17% other projects are under different stages of implementation. “The success rate of MoUs signed at Vibrant Gujarat Summits is more than 60 - 65%, which is very good by any standards. We are confident that this will go up further as more MoUs translate into investment,” said a senior government official.
It is possibly this mixed bag of results that has led the Narendra Modi-led government to decide against chasing implausible numbers of MoUs, running into lakhs of crores, at the upcoming Vibrant Gujarat Summit. Instead, the government is likely to focus on the number of MoUs or investment intentions being signed.
“Don’t get into numbers. It is a chakravyuh,” Sahu had said on Monday in response to questions about size of MoUs to be signed at the January 11-13 event.
According to the document, around 22% of the projects, majority of them from the 2011 Summit, are at preliminary stages.
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