The much hyped two-day Rajasthan Resurgent Summit held on Nov 19-20 at Jaipur Exhibition and Convention Centre, has many takeaways. The biggest amongst them being the MoUs signed worth Rs 3.30 lakh crores into the state and 2.5 lakh jobs ensured through these investments.
Chief Minister Vasundhara Raje, who has micro-managed the whole show for about two years beginning from attracting top business tycoons Cyrus Mistry of Tata (7.19 lakh turnover), Adi Godrej from Godrej (31.7 thousand crore turnover), Reliance’s Anil Ambani (1.01 lakh crore turnover), Aditya Birla’s Kumaramanglam Birla (2.98 lakh crore), Anil Agarwal of Vedanta Group (85 thousand crore), Pawan Kumar Munjal of Hero group( 23.8 thousand crore), Uday Kotak (11.2 thousand crore) of Kotak Mahindra Group, Anand Mahindra of Mahindra group(1.11 lakh crore), Gautam Adani of Adani group(1.15 lakh crore) to the summit down to the light, laser show, flower decoration and even the contents in the media kit.
Although Prime Minister Narendra Modi, who was supposed to inaugurate the show earlier, could not make it. Instead finance minister Arun Jaitley filled in for him, there are a hoard of other union ministers like Venkiah Naidu, Ananth Kumar, Suresh Prabhu and Rajiv Pratap Rudy, who showed up to support the event. However, road transport minister Nitin Gadkari has given the summit a miss.
Rajasthan’s gains from the summit
Anil Ambani would be investing in 6000 MW solar power production over the next six years. He has already invested seven thousand crore in solar, telecom and entertainment n the state.
Kotak Mahindra to double the lending in Rajasthan from Rs 5000 crore to RS 10000 crore.
Adani group to invest Rs 10,000 crore in 1600 MW Baran Power plant. He would also set up a world class care home for the elderly.
K M Birla has offered to open two more cement plants in Pali and Nawalgarh, also a white cement plant with an investment of over Rs 7000 crore.
Kotak Mahindra is currently giving Rs 5000 crore loan. Uday Kotak said he would increase the loan amount to Rs 10000 crore.
India’s first medical device park would be opened in Bhiwadi on 100 acre land and also a plastic park.
Jaipur is soon going to have a direct flight to Singapore. This was stated by Singapore minister K Shanmugam, who also stented the summit.
Rajasthan is likely to develop 24 model railway stations with the help of infrastructure
Chemical and fertilizer minister Ananth Kumar announced at least Rs 10,000 crore investment in the pharma sector. The investments would be utilized in Jhalawar’s Nationa Institute of Pharma Education and Research, Jaipur’s Plastic Engineering and Technology Institute and Rs 50000 crore investment in urea field.
Rajasthan will soon have National Institute of Design ( NID). first a satellite centre of NID, Ahmedabad would be opened. Within a year, a full fledged NID with courses for both undergraduate and postgraduate courses would be opened.
A new Micro, Small and Medium Enterprises (MSME) policy, 2015 was unveiled at summit with the pan to launch MSME Facilitation Centre in each of the 33 districts of the state.
After the summit, the government put out a statement saying 295 MoU s worth Rs 3.21 lakh crores is going to revitalize Rajasthan.
· 9 MoUs in energy sector worth Rs 190,000 crores
· 122 MoUs in tourism sector worth Rs 5783 crores
· 40 MoUs in manufacturing sector worth Rs 11760 crores
The summit brought together leading investors from across the world to interact with the political leadership, government officials and local business leaders to discuss investment opportunities in Rajasthan.
The summit saw a slew of announcements of strategic partnerships and investment intent in a number of thrust sectors identified by the State.
The largest number of MoUs were signed in tourism sector. At 122, the investment commitments stand at Rs 5783 crore. This is expected to generate 18617 jobs in the sector. The energy sector, with only 9 MoUs, attracted investments to the tune of Rs 1,90,000 crore.
The medical and health sector, with 36 MoUs and expected investments of Rs 4752 crore, will create the largest number of jobs, touching 81605. There were 40 MoUs signed in the manufacturing sector amounting to Rs 11760 crore and will lead to employment for 56698 people. The infrastructure sector attracted Rs 17038 crore as commitments for investment that would create 46975 jobs.
There were 10 MoUs signed in the agriculture sector worth Rs 2402 crore – this will lead to 5317 people getting employed. With 8 MoUs worth Rs 1807 crore, the education sector hopes to generate jobs for 12010 people in the State.
Under roads and highways, the state signed one MoU worth Rs 10,000 crore in addition to the 4 award of sanctions worth Rs 25446 crore. Nine MoUs were signed in the Skills sector. The Petroleum & Mines sector attracted proposed investments worth Rs 77,657 crore through 25 MoUs that can create 18,472 jobs in the State.
Despite all the hype and hoopla, experts say the last investment summit by the Raje government in 2007, only saw Rs 55,000 crore getting translated into reality out of the Rs 1.62 lakh crore. i.e the success rate of the last summit was 33.9 %.
From 1956 till date (Rajasthan attained statehood in 1956), the investments have amounted to Rs 2.51 lakh crore. But now the state government, which took over in 2013 is claiming that over Rs 3 lakh crore investment has already been promised by the investors.
In 2015 till date, Rs 11000 crore investment has come. The Rs 3 lakh crore is a big target.
Till date, only 316 large scale industries could be set up with an investment of Rs 120 lakh crore and provided employment to about 1,62,000 people. The middle scale units amounted to 244 with an investment of Rs 29000 lakh crore and have provided employment to about 25000 people. The micro and small scale industries together has 14000 units. The micro industries have provided 5.56 lakh employments. The small scale industries have had an investment of Rs 84000 crore with 7000 units and employment for 1,54,000 people The small scale industries have the strongest presence in the desert state.