Panel on Governance and Economic

Growth in Indian States

The Remarkable Story of Gujarat
Piyush Goyal
Member of Parliament, Rajya Sabha and
National Treasurer, Bharatiya Janata Party
Venue: Stanford University
Date: 31
st
May, 2013
Gujarat has come a long way since 2001
2001
Now
Legacy of single digit growth
(4%, FY96-2001)
Crumbling infrastructure
Frequent power outages
Stagnating Agriculture - primitive
practices
Pockets of development /
prosperity
Fastest growing large state in
India (10%, FY02-12)
Unparalleled infra buildout
24 x 7 power to All citizens
Unprecedented Agri growth
modern tech + global best
practices
Development for All Sauno
Saath Sauno Vikaas
Visionary leadership combined with a relentless focus on execution
enabled this transformation
Visionary leadership
Charting out a long-term transformation roadmap
Anticipating tomorrows challenges and acting today
Relentless focus on execution
Managing by exception, empowering decision makers
Auto-escalation of unresolved issues straight to CMO
Accountability
Example set from the top
Principles behind Gujarats Governance Model
MG
2
Minimum government,
maximum governance
3S
Skill
Scale
Speed
4P
People
Public
Private
Partnership
Pro-active governance
catering to an aspirational
neo-middle class
India first
Development for all
and appeasement of
none
No red tape, only red
carpet for investors
eGovernance is easy, effective
& efficient governance
Six case studies highlighting how Gujarats successes can be
replicated pan India
Power
Agriculture &
water
Infrastructure
Industry &
investments
Womens
empowerment
Healthcare
Replicable and transformational endeavors from the Gujarat Government
Case Study #1: Power Sector Reforms
Technology
Investment
Finance
Governance
Outcomes:
24 x 7, three phase
power to ALL homes
in Gujarat
Power surplus:
support deficit states
+ generate revenue
Canal top solar
panels :1km stretch
1MW energy, 16%
more efficiency, 6
acres land saved, 9
Mil Lt water saved
Stable financial
health of companies
in the power
business, across the
value chain
Smart metering of usage
Parallel transmission system via feeder
segregation (farm, household, industry)
Modernization of Transmission & Distribution
infrastructure
Turnaround of Guj. State Electricity Board
($450M loss in 2001 $105M profit in 2011)
100,000+ FIRs and special police stations to
tackle power-theft
Transmission & distribution losses: 35% 20%
Alternative
sources
Pioneering steps in solar energy (690MW plant,
2/3rds of nat. production); panels over canals;
aggressive plans going forward (2.2GW)
Tapping 2,500MW wind power offshore
Power situation in Gujarat was no better than other states in 2001 rampant power theft, high distribution losses, frequent power cuts etc were the norm
Case Study #2: Agriculture & Water
Public
participation
Water grid
Integrated
approach
Outcomes:
Unprecedented
agricultural growth
and step-change in
farm incomes in a
decade
Only state whose
groundwater table
has risen
Drinking water
dependence (75%
ground 85%
surface water)
These steps
cushioned the effect
of drought last year
significantly
Massive water harvesting & conservation
campaign (650,000 water mgmt structures)
14,000 water committees for drinking water
distribution & management UN Award
Drip & Sprinkler irrigation adopted across
~450,000 hectares of cultivation
1,900 km of bulk pipelines, 100,000 km of
distribution pipelines with filtration plants
covering 10K villages (tap water: 4% HH 75%)
Prudent electricity distribution, water
management, comprehensive farmer education,
financing and modernization of farm inputs
Computerization of all land records (e-Dhara)
Soil health cards to analyze the texture,
composition and best-usage of soil
Agri-fest
Proactive engagement between scientists &
farmers on farm tech/inputs [Krishi Mahotsav]
Gujarats integrated approach to agriculture (involving power, water, global best practices etc) is revolutionary in India and a model for other states
Case Study #3: Infrastructure Build up
Ports
Gujarat WAN
Urban
development
Outcomes:
Efficient delivery of
public services,
minimized wastage
of scarce resources
Calling card for
industries to shift
base
Leveraging on
strengths and
capacity building for
the future
Transition to Next-
generation Infra eg.
Wifi, Satellite
Spectrum
Carries 35% of Indias sea cargo; networked with
logistical parks, warehouses and rail-linked
freight terminals
Chemical Port + LNG terminals
New world-class private ports with record TATs
Largest fiber optic network in Asia connects all
government offices right up to 18,000 villages
Sabarmati riverfront transformed in line with
world-class cities (Paris, London, Singapore etc)
BRTS in Ahmedabad -- awarded by ITDP (USA)
for showing how large cities can reduce carbon
emissions with smart systems; only successful
BRTS in India
Next generation gas & water grids in place
Roads
92% paved roads vs 58% national average
projects lauded by World Bank (2010)
Highest road network density per sq km in India
Infrastructure is the bedrock of economic development; Gujarats progress across urban & rural infrastructure have been globally recognized
Case Study #4: Industry & Investments
Ind. Clusters /
Estates
Investment
Summits
World class physical infrastructure, conducive
regulatory environment and support systems
83 product clusters, 202 industrial estates, 60
industry-specific SEZs, 13 Special Investment
Regions (SIRs)
Vibrant Gujarat Summits Indias flagship
knowledge & tech sharing platform
VG 13 - delegates from 122 countries signed a
record ~18,000 MoUs
46% of large projects and 76% of SME projects
are under implementation from earlier summits;
VG 11 - $450B worth MoUs signed
Pro-industry
policies
Investor friendly regulatory regime (domain
specific policies), integrated large-scale
development of SIRs, skill development initiatives
and back-end logistics/warehousing etc
Outcomes:
Highest gross output
per factory and
export readiness
(exports % of GSDP)
Tata Nano plant
moved from WB to
Gujarat in record
time; Ford & Maruti
starting factories too
86 skill devpt centers
operationalized in
last 2 years, 300
more in next 2
Emerging as the hub
for knowledge
sharing, innovation
and R&D from India
Gujarats is today the undisputed investor and industry friendly administration in India; it is often targeted for being so!
Case Study #5: Womens empowerment
Healthcare
Comprehensive micronutrient fortified food for
girls under 6
eMamta program monitors health of over
1.6mn pregnant women, & children
Registration fee waiver if property is registered in
the name of a woman
15 Women ITIs & 44 women wings - 67,000
women trained (2011) compared to 3,400 (2001)
Post 2001 earthquake house allotment in the
name of women
Female courts, participation in village water
committees, gender equity programs etc
Education
CM donates all his gifts (auction) for girl child
education - assistance given to 50,000 girls
Education bonds to 1.2 mn girls to incentivize
school completion
Outcomes:
Female literacy: 58%
71% in 2001-11
Improved sex ratio
for incremental
births (0-6 year
group)
Greater economic,
social and financial
independence of
women via better
self-reliance,
healthcare and social
participation
Empower-
ment
Focus on self-reliance and financial independence via healthcare, education and empowerment initiatives
Case Study #6: Healthcare
Emergency
Services
108 - 24x7 service (medical, police &fire)
Cost of emergency ops $15 per visit vs $600-800
in US; Average response time = 18 minutes
[Harvard Business Review July 2010]
Tie-ups with private partners to deliver services
affordably emergency, obstetric care, anesthesia
Mamta kit to ensure institutional delivery and 48
hour stay
Universal
Coverage
Corporation to provide generic medicines and
diagnostic services at almost no cost
Cashless health cover upto Rs 200,000 to 3.9mn
poor families for treatment of catastrophic
illnesses
Outcomes:
32% improvement in
malnourishment
compared to 9%
nationally - highest
Institutional
deliveries - 47%
95% (750,000+
through Chiranjeevi
Scheme)
Maternal mortality
rate 172 125 in
2001-2012
Infant mortality rate
54 39 in 2005-
2011
Capacity
building
Maternity
Services
Cashless state-funded scheme to provide quality
maternity services to the poor -- Chiranjeevi
Schemes extended to new born infants via tie-ups
with private partners
Progress in healthcare delivery via institutional mechanisms and holistic approach dramatic improvement in key statistics
Thank You