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: 31st May, 2013

Gujarat has come a long way since 2001

2001 Legacy of single digit growth (4%, FY96-2001) Now Fastest growing large state in India (10%, FY02-12)

Crumbling infrastructure

Unparalleled infra buildout

Frequent power outages

24 x 7 power to All citizens

Stagnating Agriculture - primitive practices

Unprecedented Agri growth modern tech + global best practices Development for All Sauno Saath Sauno Vikaas

Pockets of development / prosperity

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

Pro-active governance catering to an aspirational neo-middle class eGovernance is easy, effective & efficient governance No red tape, only red carpet for investors India first Development for all and appeasement of none

4P People Public Private Partnership

3S Skill Scale Speed MG2 Minimum government, maximum 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

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

Technology Investment

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)

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

Finance

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 100,000+ FIRs and special police stations to tackle power-theft Transmission & distribution losses: 35% 20%

Governance

Case Study #2: Agriculture & Water

Gujarats integrated approach to agriculture (involving power, water, global best practices etc) is revolutionary in India and a model for other states

Public participation

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 Proactive engagement between scientists & farmers on farm tech/inputs [Krishi Mahotsav]

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

Water grid

Integrated approach

Agri-fest

Case Study #3: Infrastructure Build up

Infrastructure is the bedrock of economic development; Gujarats progress across urban & rural infrastructure have been globally recognized

Urban development

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 Largest fiber optic network in Asia connects all government offices right up to 18,000 villages 92% paved roads vs 58% national average awarded by World Bank (2010) Highest road network density per sq km in India 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

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 Nextgeneration Infra eg. Wifi, Satellite Spectrum

Gujarat WAN

Roads

Ports

Case Study #4: Industry & Investments

Gujarats is today the undisputed investor and industry friendly administration in India; it is often targeted for being so!

Ind. Clusters / Estates

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) Investor friendly regulatory regime (domain specific policies), integrated large-scale development of SIRs, skill development initiatives and back-end logistics/warehousing etc 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

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

Pro-industry policies

Investment Summits

Case Study #5: Womens empowerment

Focus on self-reliance and financial independence via healthcare, education and empowerment initiatives

Healthcare

Comprehensive micronutrient fortified food for girls under 6 eMamta program monitors health of over 1.6mn pregnant women, & children 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 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

Outcomes: Female literacy: 58% 71% in 2001-11 Improved sex ratio

Education

Empowerment

Greater economic, social and financial independence of women via better self-reliance, healthcare and social participation

Case Study #6: Healthcare

Progress in healthcare delivery via institutional mechanisms and holistic approach dramatic improvement in key statistics

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] 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 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 Tie-ups with private partners to deliver services affordably emergency, obstetric care, anesthesia Mamta kit to ensure institutional delivery and 48 hour stay

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 20052011

Universal Coverage

Maternity Services

Capacity building

Thank You