Modi Myth Busted: Facts That Diminish Gujarat's Vibrant Claim

Modi Myth Busted: Facts That Diminish Gujarat's Vibrant Claim

September 13, 2013

As the general elections scheduled for 2014 approach, the Indian voter is deluged with two conflicting images of Narendra Modi. The battle lines appear to be drawn between those who glorify the achievements of Modi the administrator, and those who view the Gujarat Chief Minister through the prism of the 2002 carnage. Even if we keep the discussion on 2002 away for another time, the image of an able administrator, who has spearheaded a revolution of progress in Gujarat, may be too difficult for Narendra Modi to hold on to.

His politics of communal hate is not separate from his agenda of development. Together they form the core of a programme in which one becomes a prerequisite for the other – The Hindu

There are many examples of rapid economic development under authoritarian regimes. South Korea recorded miraculous growth under a military regime, until democracy was established in 1987. Singapore too emerged as an example of a shining economy under authoritarian rule.

There are also cases of democratic establishments sliding into authoritarianism in times of adversity. There is perhaps no example better than Germany of the 1920s. Reeling from the adverse economic clauses in the Treaty of Versailles, particularly in the years of the Great Depression, the Germans elected Hitler on planks of anti-Semitism and Pan-Germanism.

13 Scams That Narendra Modi does not want the Lokayukta to probe

It is not unknown to anyone who is knowledgeable in Indian politics that the Gujarat government had been sitting on a proposal to appoint a Lokayukta in the state for almost a decade now. In a recent verdict, the Supreme Court upheld the appointment of Justice (Retd) RA Mehta as the state Lokayukta (it is a different matter that Justice Mehta refused to take up the position). There have been media reports on how the Gujarat government spent tax-payers’ money to fund NGO’s for fighting a proxy war against Justice Mehta. But why would Modi, an epitome of a free and fair administrator according to his fans, be so hesitant about appointing a Lokayukta?

Land for Nano plant at low rate
The state government allotted 1100 acres of land to Tata Motors Ltd (TML) to set up the Nano plant near Sanand. The land was allotted allegedly at Rs900 per square metre while its market rate was around Rs10,000 per square metre. Simply put, the government gave Tata Motors total monetary benefit of Rs33,000 crore.

Land sold cheap to Adani Group
Land was allotted to Adani Group for the Mundra Port & Mundra Special Economic Zone (SEZ) at Re1 per square metre. This is grossly lower than the market rate.

Tata Motors’ Nano plant at Sanand in Gujarat is lying idle. Tata Motors has utilised just a fraction of the Rs 2000 crore facility and in whole of the last year, there have only been two months when Tata Motors utilised more than 25 percent of its installed capacity at Sanand. In fact for the first time this April, the company’s total production of the Nano fell below 1,000 units utilising just 4.5 percent of the installed capacity of 20,833 units per month or 2.5 lakh units per annum (CNBC-TV18 report). This is the state of the much touted Nano, despite months of advertising, heavy discounting and offering a first of its kind Credit Card facility to boost Nano sales. The Nano deal could well be the tip of an iceberg of scams under Modi rule.

Cheap land for industry, not for air force
The Gujarat government allotted 3,76,561 square metre of land to real estate developer K Raheja at Rs470 per square metre, while the South-West Air Command (SWAC) was asked to pay Rs1100 per square metre for 4,04,700 square metre land.

Agriculture University land allotted for hotel
State government allotted 65,000 square metres of land belonging to Navsari Agriculture University in Surat to Chatrala Indian Hotel Group for a hotel project despite objection from the institute. This deal was allegedly brokered by the chief minister through his office causing a loss of Rs 426 crore.

Border land for chemical firms
A huge plot of land near the Pakistan border was allotted to salt chemical companies said to be close to BJP leader Venkaiah Naidu.

Essar Group's encroachment
State government has allotted 2.08 lakh square metres of land to Essar Steel. Part of the disputed land is CRZ and forest land that cannot be allotted as per Supreme Court guidelines.

Land given to L&T
Larson & Toubro (L&T) was allotted 80 hectare land at Hazira at the rate of Re 1 per square metre.

Cattle feed fraud
The Gujarat government had purchased cattle feed from a blacklisted company at Rs 240 per 5 kg whereas the market rate is just Rs 120 to Rs 140 per 5 kg.

Scam in Anganwadi centres
Two bidders apparently formed a cartel and bid for supplying supplementary Nutrition Extruded Fortified Blended Food (EFBF) to Anganwadi centres of the state. One company bid for three zones, while the other for only two. Guidelines were violated, causing the state exchequer a loss of Rs 92 crore.

Luxury aircraft used by CM
Instead of using commercial flights or state-owned aircraft and helicopter, chief minister Narendra Modi had used private luxury aircraft for around 200 trips in five years. The cost had been borne by the beneficiary industries.

Rs 500 crore SSY scam
The Rs 6237.33 crore Sujalam Sufalam Yojana (SSY) announced in 2003 was to be completed by 2005 but it is still not completed. Public accounts committee of Gujarat assembly unanimously prepared a report indicating a scam of over Rs 500 crore which was not tabled.

Indigold Refinery land scam
Around 36.25 acre farmland in Kutch district was purchased and sold in violation of all norms by Indigold Refinery Ltd.

Swan Energy
49% of the shares of Pipavav Power Station of GSPC were sold to Swan Energy without inviting any tenders.

Myth of Development
Gujarat was one of the top economic performers much before Narendra Modi took over as chief minister in Gujarat in October 2001. Modi by himself, over the last 10 years, has made little difference to the state's gross domestic product. Gujarat's economic performance went up because of economic reforms, almost doubling growth between 1991-98, again before Modi took over in October 2001.

During 2001-04, the rate of industrial growth for Gujarat was 3.95%, and during 2005-09, it was 12.65%. In isolation, this appears to be a phenomenal jump, but not so when compared to some other states. During these sub-periods, industrial growth for Orissa was 6.4% and 17.53%.

In FDI, too, Gujarat has not been a leading state. During 2006-10, Gujarat signed MoUs worth Rs 5.35 lakh crore with potential of 6.47 lakh jobs. But Maharashtra and Tamil Nadu with Rs 4.20 lakh crore and Rs 1.63 lakh crore worth MoUs, expect about 8.63 lakh and 13.09 lakh jobs.

Even in case of poverty reduction, Gujarat lags behind other big states like Maharashtra, Karnataka, or Tamil Nadu.

In Gujarat, the percentage of women suffering from anaemia has risen from 46.3% in 1999 to 55.5% in 2004, and amongst children from 74.5% to 80.1%. The conditions of dalits and women have deteriorated during the last decade; while those of Muslims and tribals are still worse.

Gujarat witnessed the highest number of strikes and other forms of labour unrest in recent times, said the Economic Survey of 2010-11. Wage and allowance, bonus, personnel, indiscipline and violence, and financial stringency were the major reasons for these strikes and lockouts.

In infant mortality, one of the best indicators of the success of a government, Gujarat enjoys a rank as low as 11th among the states, with 44 deaths per 1000 live births. A Statistical Appraisal emphasised that between 40 and 50 per cent of children in Gujarat are underweight.

The gender ratio was 921 in 2001 but this has declined to 919 in 2011 while the girl child ratio has worsened from 964 in 2001 to 890 in 2011.

Parting Thought

For the last several years, Modi has been successful in projecting his ‘vibrant Gujarat’ as a role model of economic growth and himself as ‘Vikas Purush’. Though one must give due credit to Modi for his effective skills in making projections, one must also critically analyse this ‘growth story of Gujarat’ based on facts and figures. Regretfully, as one examines the facts since Modi came to power in Gujarat in 2001, the story appears to be hollow and, at times, contrary to what is being projected.

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Comments (2)
ShriKant Upadhyay Reply
September 14, 2013
Thank U 4 EXPOSING this monoster! Hell 2 this modern HITLER !
R K Sharma Reply
September 12, 2013
All this is well and good. Bottom line is foreign group is funding the Modi campaign so the question is who is Modi really working for.
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