Govt works overtime to keep recession off investors meet

Senior officials, who recently participated in roadshows in some foreign countries ahead of the summit, admit that the unprecedented financial crisis may deter entrepreneurs there from committing considerable investment in Gujarat during the two-day event to be held at the Science City near Ahmedabad on January 12-13, 2009.

State Principal Chief Industries Advisor R J Shah, who participated in a roadshow in the US recently, concedes that the economic meltdown has hit that country hard, and there is little chance of major US multinationals pledging investment in the state during the summit.

Shah, however, said that despite the impact of the meltdown on the US economy, there are about 10 to 12 companies from that country who have shown their willingness to invest in the state. “During our road shows, we could certainly find the US economy reeling under the current wave of economic downturn. But the representatives of some of the companies we interacted with during our visit, told us that they were keen to invest in Gujarat,” Shah told Newsline on Saturday.

He said certain US firms have agreed to send their representatives to Gujarat to participate in the summit and pledge investment mainly in infrastructure, engineering and solar energy. “There are entrepreneurs in the US who believe that the current crisis will blow over in the next few months, which will encourage them to invest in industry-friendly places like Gujarat,” Shah added.

Notwithstanding the slowdown, the official machinery engaged in the business summit preparations is busy sending out invites along with colourful, glossy brochures to the champions of industries in India as well as abroad, explaining to them why they should pledge investment in Gujarat—the growth engine of India.

After conducting road shows in Europe, Africa and Asia last month, senior officials say that despite the impact of the meltdown seen there, they hope to attract a good deal of investment in Gujarat during the summit.

A senior official in the state Industries Department said that among other areas of potential investment, the government would concentrate mainly on marketing the Japan-aided 90 billion dollar Delhi-Mumbai Industrial Corridor (DMIC) project during the summit. About 40 per cent of Gujarat’s geographical area falls under this ambitious project, which the government intends to develop as a “global manufacturing and trading hub” supported by world class infrastructure.

“The corridor passes through 18 districts, covering about 75 per cent of the state’s population. All these areas will see logistical hubs, special investment regions, special economic zones and a large number of labour-intensive industries with the potential of attracting investment estimated at Rs 2,000 billion, and generating over eight lakh jobs,” the official said.

Besides focussing on infrastructure, the government will also try to convince entrepreneurs to invest in small and medium industries that have been hit the hardest by the current financial crisis, during the summit. Another focus area at the summit will be power, gas and oil, with the government hoping to attract an investment of about Rs two lakh crore in this sector alone.

A Singapore-based infrastructure firm—Universal Success Enterprises Ltd— is likely to ink a Memorandum of Understanding (MoU) with the government for a 12,000 MW power plant the company is planning to set up in Gujarat at an estimated cost of Rs 60,000 crore, said sources in the Energy Department.

The other focus areas will be the food and agri business, textiles and apparels, social infrastructure, ports and ship building, bio-technology, urban development, Information Technology and tourism.