VGGIS investors drop MoUs worth Rs1,25,313 cr

Of the large number of memorandums of understanding (MoUs) signed at different Vibrant Gujarat Global Investors’ Summits (VGGIS), many never translate into commissioned projects. The total worth of all the MoUs signed at the four investors’ summits held in the state so far is Rs18,62,896.70 crore. Of this, MoUs worth Rs1,25,313.25 crore were dropped, mostly on the drawing board itself.

Chief minister Narendra Modi organised the first VGGIS in 2003, after which an investors’ summit has been held in the state every two years. The latest figures available with the state’s industry department for the MoUs signed during different investors’ summits, suggest that 41.25% of the MoUs (33 out of 80) signed in 2003 were dropped.

The figures for the other three VGGIS are not very encouraging either. Of the agreements (MoUs) signed in 2005, 39.21% (89 out of 227) were dropped; 33.33% of the agreements (101 out of 363) signed in 2007 were dropped; and a total of 0.7 % of the agreements (10 out of 1425) signed in 2009 have been declared as dropped.”

Yet Gujarat has done better than most other states,” a senior IAS officer said.