Vibrant Gujarat Summit Attracts Investments of $152.8 Billion Through 444 Commitments on Day One

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Researched by Industrial Info Resources (Sugar Land, Texas)--The prevalent worldwide financial crisis notwithstanding, the ongoing 4th Vibrant Gujarat Global Investors' Summit 2009 in Ahmedabad, Gujarat, saw 444 memorandums of understanding being signed on day one, with the nation's industrial movers and shakers pledging to invest $152.8 billion across several sectors in the state. The total value of investment commitments made on the first day exceeds what was pledged during the 3rd summit in January 2007, when 363 memorandums were signed for projects worth $94 billion.

This year's event started optimistically, with investment commitments to the tune of $64.3 billion during the three-hour inauguration ceremony. Day one of the two-day event on January 12 also saw additional investment commitments of about $6.72 billion being made for 12 projects. The memorandums of understanding were signed on day two.

Memorandums adding up to a total value of $102 billion were expected to be signed on day two, taking the total pledged investments during the event to $159.6 billion toward projects that are estimated to generate 828,000 employment opportunities in the state.

Speaking at the occasion, Ratan Tata, Chairman of the Tata Group (Mumbai), said, "In 2007, I had said if you are not in Gujarat you are stupid. I am very proud that I followed my own advice. The state's ability to execute quickly is commendable". The Tata Group, which recently set up a manufacturing base for the ambitious $2,500 Nano car in Gujarat, announced plans to invest $4.3 billion over a period of three years.

Day One Investment Commitments

• Energy and Petrochemicals: 114 commitments were signed and 11 new announcements were made, taking the total investment committed in these sectors to $78 billion at the end of day one. In the oil and gas sector, 17 memorandums of $8.62 billion were signed, with announcements being made for 10 additional investment commitments of about $6.56 billion. This puts the total investment commitment in the oil and gas sector at $15.4 billion.
• Oil & Natural Gas Corporation Limited (BSE:500312) (Dehradun, Uttarakhand): $3.6 billion of a total commitment of $6.12 billion to develop petrochemicals complex at Dahej Special Economic Zone (SEZ)
• Essar Oil Limited (BSE:500134) (Jamnagar, Gujarat): four memorandums worth $4.28 billion
• $816 million for capacity expansion of Vadinar refinery in Jamnagar from the present 300,000 barrels per day (BBL/d) to 340,000 BBL/d.
• Subsequent expansion of Vadinar Refinery from 340,000 BBL/d to 685,000 BBL/d based on market conditions.
• $816 million to develop a new petrochemical complex in Vadinar.
• $204 million for an underground coal-gasification project.
• Reliance Industries Limited (BSE:500325) (Mumbai): The firm recently completed projects worth $10.2 billion in the state and did not make any fresh commitments.
• Gujarat Gas Company Limited (BSE:523477) (Ahmedabad, Gujarat): $81.6 million to expand gas distribution network
• Hindustan Petroleum Corporation Limited (BSE:500104) (Mumbai): $381.7 million in Mundra

• Infrastructure: 122 commitments worth $42.64 billion were signed. More than 50% of these investments will be made in the Dholera special economic zone. Investment commitments up to $14.34 billion were made to develop ports.
• Universal Success Enterprise Limited (USEL) (Singapore) made the maximum commitment of $17.74 billion to be invested over the next 10 years in Gujarat, generating 50,000 employment opportunities. Investments committed by USEL include:
• $10.19 billion for a 10,000 megawatt (MW) thermal power plant.
• $6.12 billion to develop a 5,000-acre SEZ of international standards in collaboration with the Salim Group (Indonesia)
• $1.43 billion to set up two commercial ports for bulk cargo handling for power plants
• Hindustan Construction Company Limited (BSE:500185) (Mumbai): two memorandums for $8.46 billion
• Commitment with Gujarat Infrastructure Development Board to invest $8.16 billion to develop a waterfront city over 4,000 acres at the Dholera SEZ. The project is expected to be operational in 10 years and will create 50,000 jobs.
• Commitment with Narmada Water Resources, Water Supply and Kalpasar Department to invest $300 million in three water pipeline projects
• Sandesara Group (Vadodara, Gujarat): $6.11 billion in SEZ for power and expansion of Sterling SEZ
• Adani Enterprises Limited (BSE:512599) (Ahmedabad, Gujarat): $5.5 billion to develop an SEZ, expand Mundra port, set up power plants and transmission networks, and for the education sector
• The Ruias of the Essar Group (Mumbai): $4.89 billion in chemicals and petroleum sectors and to develop ports and an academy
• Aditya Birla Group (Mumbai): $4.08 billion over three years toward fiber and telephony
• Surat Municipal Corporation and Surat Urban Development Authority: memorandums of understanding worth $2.25 billion for housing and infrastructure projects signed on day two.
• Sterling Biotech Limited (BSE:512299) (Mumbai), a subsidiary of the Sandesara Group: $1.23 billion in power and SEZ and to develop a university and an airport.

• Power: 30 commitments worth $41.46 billion were signed. These projects will lead to the addition of 41,917 MW of power generation capacity in the state and create 50,000 jobs. Announcements of additional investments of $1.63 billion in the power sector were also made.
• USEL: $10.18 billion for a 10,000-MW thermal power plant
• OPG Power Ventures PLC (LSE:OPG) (Isle of Man, United Kingdom): $2.45 billion for a 2,400-MW power plant
• Shapoorji Pallonji Energy Private Limited (Mumbai): $2.04 billion for a 2,000-MW power plant
• Adani Group: 2,000-MW power project at Dholera SEZ
• Rachana Global Excavation Private Limited (Patan, Gujarat): $1.88 billion for a 2,000-MW power plant
• Larsen & Toubro Limited (BSE:500510) (Mumbai): 1,680-MW coal-fired power project in Junagadh or Hazira
• India Power Corporation Limited, a subsidiary of PTC India Limited (BSE:532524) (New Delhi): $1.35 billion for a 1,320-MW power project
• Petronet LNG Limited (BSE:532522) (New Delhi): $632 million for a 1,200-MW power plant based on liquefied natural gas in Dahej
• Videocon Industries Limited (BSE:511389) (Aurangabad, Maharashtra): $815 million for thermal power plant

• Renewable Energy: 67 memorandums of understanding worth more than $20.98 billion were signed for solar and wind power plants with generation capacities in the range of 50 MW to 1,000 MW. Wind power projects worth $4.08 billion with a power generation capacity of 3,000 MW are expected to be signed before the event concluded.
• Suzlon Energy Limited (BSE:532667) (Pune, Maharashtra) has lined up investments of $1.83 billion in the state to develop a high-tech SEZ for solar power projects. The firm will also invest $1.02 billion to develop the world's largest windfarm of 1,500 MW in Kutch.
• ONGC: $1.37 billion of a total commitment of $7.13 billion to set up a 51-MW wind power project in Hazira.
• The AES Corporation (NYSE:AES) (Arlington, Virginia): $1 billion for a solar power project
• Gujarat State Petroleum Corporation (Gandhinagar, Gujarat): $245 million for a 200-MW windfarm
• Abellon Bioenergy Limited (Ahmedabad, Gujarat): 1,000-MW wind power plant
• Enercon India Limited (Pune, Maharashtra): 600-MW wind power project
• Tata Power Company Limited (BSE:500400) (Mumbai): memorandums for 5-MW geothermal plant and 5-MW solar power plant

• Special Investment Regions
• Memorandums for three mega-projects of $20.39 billion and 14 infrastructure ventures of $2.49 billion
• SEZs: 17 commitments worth $15.75 billion were signed.
• Entrepreneurship & Management Processes International Group (New Delhi): $2.65 billion for an innovation SEZ in Valsad
• $7.78 billion for 107 projects in the Dahej Petroleum, Chemical and Petrochemical Industrial Region
• $1.61 billion for 12 industrial parks

• Information Technology (IT): Memorandums were signed for 19 projects worth $9.38 billion in the IT, IT-enabled services, semiconductor and telecom sectors with potential generation of 200,000 employment opportunities over a period of five years.
• Hotmail founder Sabeer Bhatia committed to invest $6.12 billion to develop a "Nano City" in Kutch for software development in niche sectors: bio-sciences, material sciences and nano technology.
• The state government of Gujarat has canceled the commitment it was to sign with Satyam Computer Services Limited (BSE:500376) (Secunderabad, Andhra Pradesh) to set up an IT SEZ in the state and is also likely to withdraw 26 acres of land that had been allotted to the firm to develop a $12 million offshore development center in Gandhinagar.

• Tourism: 102 memorandums of $8.77 billion were signed to develop airports, film cities, convention centers, five-star hotels, resorts and clubs.

• Manufacturing
• Larsen & Toubro: nine memorandums of understanding worth $5.1 billion to set up heavy machinery and manufacturing plants, develop roads and develop a 2,400-MW power plant
• Bharat Forge Limited (BSE:500493) (Pune, Maharashtra): $1.43 billion to foray into Gujarat

• Civil Aviation: 12 commitments of $2.45 billion were signed. Deccan Airways' G.R. Gopinath, a pioneer of low-cost airplanes, pledged to invest $815 million to develop the city of Ahmedabad as an air cargo logistics hub.

• Miscellaneous
• State Bank of India (BSE:500112) (Mumbai): three memorandums to invest $6.12 billion over three years
  • The bank will set up 45 additional branches in the state.
  • It expects to facilitate the disbursement of $4.08 billion at the summit for micro, small and medium enterprises.
• Cellular Operators Association of India (New Delhi): $4.08 billion to be invested by the cellular industry as a whole
• Montblanc Investment Corporation (Ontario, Canada): $40.88 million to set up a dedicated animation park in Gujarat, the first of its kind in Asia.

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