Stanford Lecture v9

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    Panel on Governance and Economic

    Growth in Indian States

    The Remarkable Story of Gujarat

    Piyush GoyalMember of Parliament, Rajya Sabha and

    National Treasurer, Bharatiya Janata Party

    Venue: Stanford University

    Date: 31stMay, 2013

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    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 - primitivepractices

    Pockets of development /prosperity

    Fastest growing large state inIndia (10%, FY02-12)

    Unparalleled infra buildout

    24 x 7 power to All citizens

    Unprecedented Agri growth modern tech + global bestpractices

    Development for All SaunoSaath Sauno Vikaas

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    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

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    Principles behind Gujarats Governance Model

    MG2

    Minimum government,maximum governance

    3S

    Skill

    Scale

    Speed

    4PPeople

    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

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    Six case studies highlighting how Gujarats successes can be

    replicated pan India

    PowerAgriculture &

    waterInfrastructure

    Industry &investments

    Womensempowerment

    Healthcare

    Replicable and transformational endeavors from the Gujarat Government

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    Case Study #1: Power Sector Reforms

    Technology

    Investment

    Finance

    Governance

    Outcomes:

    24 x 7, three phasepower to ALL homesin Gujarat

    Power surplus:support deficit states+ generate revenue

    Canal top solarpanels :1km stretch 1MW energy, 16%more efficiency, 6acres land saved, 9Mil Lt water saved

    Stable financialhealth of companiesin the powerbusiness, across thevalue chain

    Smart metering of usage

    Parallel transmission system via feedersegregation (farm, household, industry)

    Modernization of Transmission & Distributioninfrastructure

    Turnaround of Guj. State Electricity Board($450M loss in 2001 $105M profit in 2011)

    100,000+ FIRs and special police stations totackle 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

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    Case Study #2: Agriculture & Water

    Public

    participation

    Water grid

    Integrated

    approach

    Outcomes:

    Unprecedentedagricultural growthand step-change infarm incomes in adecade

    Only state whosegroundwater tablehas risen

    Drinking waterdependence (75%ground 85%surface water)

    These stepscushioned the effectof drought last yearsignificantly

    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 plantscovering 10K villages (tap water: 4% HH 75%)

    Prudent electricity distribution, watermanagement, 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

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    Case Study #3: Infrastructure Build up

    Ports

    Gujarat WAN

    Urban

    developmentOutcomes:

    Efficient delivery ofpublic services,minimized wastageof scarce resources

    Calling card forindustries to shiftbase

    Leveraging onstrengths andcapacity building forthe future

    Transition to Next-

    generation Infra eg.Wifi, SatelliteSpectrum

    Carries 35% of Indias sea cargo; networked with

    logistical parks, warehouses and rail-linkedfreight terminals

    Chemical Port + LNG terminals

    New world-class private ports with record TATs

    Largest fiber optic network in Asia connects allgovernment offices right up to 18,000 villages

    Sabarmati riverfront transformed in line withworld-class cities (Paris, London, Singapore etc)

    BRTS in Ahmedabad -- awarded by ITDP (USA)for showing how large cities can reduce carbonemissions with smart systems; only successfulBRTS 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

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    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 InvestmentRegions (SIRs)

    Vibrant Gujarat Summits Indias flagshipknowledge & tech sharing platform

    VG 13 - delegates from 122 countries signed arecord ~18,000 MoUs

    46% of large projects and 76% of SME projectsare under implementation from earlier summits;

    VG 11 - $450B worth MoUs signed

    Pro-industry

    policies

    Investor friendly regulatory regime (domainspecific policies), integrated large-scale

    development of SIRs, skill development initiativesand back-end logistics/warehousing etc

    Outcomes:

    Highest gross outputper factory andexport readiness(exports % of GSDP)

    Tata Nano plantmoved from WB toGujarat in record

    time; Ford & Marutistarting factories too

    86 skill devpt centersoperationalized inlast 2 years, 300more in next 2

    Emerging as the hubfor knowledgesharing, innovationand R&D from India

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

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    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 inthe name of a woman

    15 Women ITIs & 44 women wings - 67,000women 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 ratiofor incrementalbirths (0-6 yeargroup)

    Greater economic,social and financialindependence ofwomen via betterself-reliance,healthcare and socialparticipation

    Empower-

    ment

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

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    Case Study #6: Healthcare

    Emergency

    Services

    108 - 24x7 service (medical, police &fire)

    Cost of emergency ops $15 per visit vs $600-800in US; Average response time = 18 minutes[Harvard Business Review July 2010]

    Tie-ups with private partners to deliver servicesaffordably emergency, obstetric care, anesthesia

    Mamta kit to ensure institutional delivery and 48hour stay

    Universal

    Coverage

    Corporation to provide generic medicines anddiagnostic services at almost no cost

    Cashless health cover upto Rs 200,000 to 3.9mnpoor families for treatment of catastrophic

    illnesses

    Outcomes:

    32% improvement inmalnourishment compared to 9%nationally - highest

    Institutionaldeliveries - 47%95% (750,000+

    through ChiranjeeviScheme)

    Maternal mortalityrate 172 125 in2001-2012

    Infant mortality rate54 39 in 2005-2011

    Capacity

    building

    Maternity

    Services

    Cashless state-funded scheme to provide qualitymaternity services to the poor -- Chiranjeevi

    Schemes extended to new born infants via tie-upswith private partners

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

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    Thank You