Long queues were seen on Wednesday evening after petrol price hike was declared. The price hike was to come to effect from midnight. People rushed to fill the tanks before that time.

Ahmedabad, 23 May 2012

As elections in states including Uttar Pradesh are over, and parliament session has ended, the Congress led UPA government has hiked the prices of petrol by Rs 7.50 a liter with effect from midnight tonight.

Petroleum Minister S Jaipal Reddy had said yesterday that there was an immediate need to raise fuel prices.

“It (price increase) is very essential but (before hiking rates) we have to talk to political parties,” he had told reporters.

Petrol prices were last increased on November 4 last year while price of diesel, kerosene and cooking gas were raised in June last year.

Meanwhile Rupee dipped (to an all-time low of) Rs 56 (to a US dollar) on Wednesday. Last year it was Rs 46.

Jamnagar, 22 May 2012

Reliance Industries Limited today announced that it has selected Phillips 66’s (NYSE: PSX) E-Gas™ Technology for its planned gasification plants at Jamnagar.

Reliance’s Jamnagar site is the largest refining complex in the world, with an aggregate refining capacity of 1.3 million barrels of oil per day. The planned gasification plants at Jamnagar will be among the largest in the world and will process petroleum coke and coal into synthesis gas utilizing the E-Gas™ Technology. The synthesis gas will be used as feedstock for a new chemical complex and will fuel the refinery’s existing gas turbine power generation units.

“We look forward to this opportunity to work with Reliance on the largest gasification project in the world,” said Rex Bennett, President, Specialties and Business Development at Phillips 66. “Our E-Gas™ Technology will be used to turn petcoke and coal into clean, reliable energy for Reliance’s refinery and petrochemical plant operations.”

Phillips 66 will license its E-Gas™ Technology to Reliance and provide process engineering design and technical support relating to the gasification technology process area.

The E-Gas™ Technology has been utilized in commercial applications since 1987. It incorporates a unique gasification system design that can be applied with gas and
steam turbine combined-cycle power generation to produce electric power, as well as synthesis gas applications for the production of hydrogen, chemicals or substitute natural gas in highly flexible combinations. It is among the cleanest and most efficient commercial technologies for coal or petroleum coke-based electric power generation and syngas production. It offers high system efficiencies, minimized water consumption and very low emissions.

About RIL

Reliance Industries Limited (RIL) is India’s largest private sector company on all major financial parameters with a turnover of INR 339,792 crore (US$ 66.8 billion), cash profit of INR 31,994 crore (US$ 6.3 billion) and net profit of INR 20,040 crore (US$ 3.9 billion) as of March 31, 2012.

RIL is the first private sector company from India to feature in the Fortune Global 500 list of ‘World’s Largest Corporations’ and ranks 119th amongst the world’s Top 200 companies in terms of profits. RIL ranks 68th in the Financial ‘Times FT Global 500’ list of the world’s largest companies. RIL is ranked amongst the ’50 Most Innovative Companies – 2010′ in the World in a survey conducted by the US financial publication – Business Week in collaboration with the Boston Consulting Group (BCG). In 2010, BCG also ranked RIL as the second highest ‘Sustainable Value Creators’ for creating the most shareholder value over the decade in the world.

About Phillips 66

Headquartered in Houston, Phillips 66 is an advantaged downstream energy company with segment-leading Refining and Marketing (R&M), Midstream and Chemicals businesses. The company has approximately 14,000 employees worldwide. Phillips 66’s R&M operations include 15 refineries with a net crude oil capacity of 2.2 million barrels per day, 10,000 branded marketing outlets, and 15,000 miles of pipeline systems. In Midstream, the company primarily conducts operations through its 50 percent interest in DCP Midstream, LLC, one of the largest natural gas gatherers and processors in the United States, with 7.2 billion cubic feet per day of gross natural gas processing capacity. Phillips 66’s Chemicals business is conducted through its 50 percent interest in Chevron Phillips Chemical Company LLC, one of the world’s top producers of olefins and polyolefins with more than 30 billion pounds of net annual chemicals processing capacity across its product lines. For more information, visit www.phillips66.com.

Ahmedabad, 21 May 2012

Essar Oil, amongst India’s top private sector refiners, and Larsen & Toubro (L&T), amongst India’s top engineering and construction companies, have signed a Memorandum of Understanding (MoU) for supplies of high quality bitumen for key infrastructure projects in Gujarat undertaken by the engineering giant. The initial supply agreement is for a quantity of 15,000 metric tonnes over the course of the project and is likely to be extended to other projects in and around the state.

Essar Oil will provide supplies for the Kandla – Mundra Road Project (KMRP) and the Samakhaiyali – Gandhidham Road Project (SGRP), both in the state of Gujarat from its state-of-the-art refinery in Vadinar. This cooperation will soon be extended to projects like the Kishangarh – Udaipur – Ahmedabad Road Project, among others.

Essar Oil has existing relationship with L&T under which it supplied about 60,000 metric tonnes of high quality bitumen over the last 18 months for L&T’s various road projects. The new MoU is over and above that quantity. Essar Oil will ensure availability of quality product for the projects and the relationship with L&T will open up avenues for sales of its refinery product.

“We are happy to be associated with L&T and in essence be a part of the infrastructure development of the country. Essar Oil is fully geared to meet the supply for increased demand of high quality bitumen for road construction,” said Mr. S. Thangapandian, CEO – Marketing, Essar Oil.

Larsen & Toubro is one of the pioneers of infrastructure development in India and currently has more than 15 road projects under various stages of construction / operations, across states like Gujarat, Maharashtra, Tamil Nadu, Karnataka, Haryana, Andhra Pradesh and Rajasthan.

Essar Oil has the capacity to produce over 700,000 metric tons of bitumen per annum.

Daimler plant in Chennai

Ahmedabad, 20 May 2012

Following is the most popular version on “CREATION” found in the Puranas(India’s Ancient Sacred texts).

In the beginning there was Narayana who slept in a dreamless slumber. He slept in the coils of a serpent with innumerable hoods called Adi-Ananta-Sesha, meaning one-infinity-zero. And the serpent floated on a sea of milk that was still and unmoving. As long as Narayana was in slumber the world did not come into being. Creation began when he awoke. It is a vivid imagery that is very clearly a code, and not to be taken literally.

(http://devdutt.com/articles/indian-mythology/cradle-of-imagination.html)

Time stops, everything slows down and I am reminded of these words, whenever I visit Mahabalipuram 50 KM south of Chennai, a seventh century thriving port town and now one of the most famous UNESCO heritage sites in India. It is famed for one of the most enthralling rock carving and monolithic in the backdrop of Tranquil Sea. Archaeological evidence at site and as far as China or Greece confirms the prosperity of this place. Not to mention the legends and myths covering saga of this place. The myth says, “The place was so beautiful that the envious gods of Sea sent flood that engulfed six of its seven temples”. Marine Archaeologists confirm that only sixth of the place is on earth and remaining in the sea. Since then this part of the world slept in deep slumber only to be revived a millennium later.

Almost 1000 years since, another edifice was about to turn Sesha into Adi. This February, while waiting at the Industries department at St. Fort George (an edifice of seventeen century and the foundation of modern day Chennai city), I came across a coffee-table book on the Chamber of Commerce of Madras which has history of more than 175 years. According to the book, global trade was the very reason for formation of the city originally settled at St Fort George, (which is still used by incumbent Govt. and present CM does not want to leave it even though new secretariat building is ready). The first seeds of so called town were settled by East India Company to manufacture and export local clothes which later expanded to other mercantile activities. The entrepreneurship and global trade go hand in glove since the inception as the city grew and thrived with world business. The industry kept track of the events abroad and tried to remain in tune with demand.

Unlike Gujarat which is in the middle of National Highway 8, thus having access to lucrative domestic market on either side of Delhi/Bombay or exports to balance, TN had to mainly depend on the exports to derive economies of scale. In post liberalized India, the industry here faced one of the most terrible time and this triggered in massive obsession with quality as they were required to speak language that is globally understood to compete in global markets.

If you are looking for examples in contemporary history where low base economy grew on global trade; your search ends with East Asian miracles. The trade induced growth by generating wealth for self and others was exemplified by now famous Kojima theorem. Product Life cycle Theory (or Geese Flying Pattern theorem) that explains Japanese growth model; became sacred text book for other East Asian economies to emulate. They were the first ones to realize importance of quality and uniformity in products.

In order to achieve domination over world market, other remarkable and massive obsession Japanese companies had been around quality. The JITs, KANBANS, 5S, KAIZENs and many such tools were developed to make sure uniformity is maintained across all the products. The contribution of one American Mr. Deming was immense in this regard to bring Japan where it is now.

The principals of Statically Quality Control (SQC) defined by Mr. W. Edwards Deming were perfected by Japanese. It is said that when Mr. Deming was called to teach these issues to Japanese companies early post war, he was touched by his host’s eagerness to learn. Japanese host institute paid him his fees, but Mr. Deming returned that money asking his hosts to use it for the development of Quality improvement for Japanese industries. This moved Japanese so much that they decided to immortalize Mr. Deming by having an award named after him. The award was announced initially to be given to Japanese companies for their consistent performance improvement in quality and profitability. Over a period many companies around the world tried to strive for this award. For starters, the importance of this award lies in the fact that Industry considers the Deming award as equivalent to the Nobel Prize in the field of quality or more than that as I titled above. If you get it, you command respect, period. Mostly it remained Japanese forte with occasional USA and European companies making it in. India with hardly any integration with global economy was obviously out of question. Hardly any surprise considering India’s contribution to global trade was minuscule. Even after liberalization, it was thought it will take ages for Indian companies to even come closer.

Just seven years since liberalization, the world was in a big surprise when Venu Srinivasan’s SUNDARAM-CLAYTON stunned everyone to be the only Asian and (first non-Japanese company) to have gate-crashed in the elite club respectfully. In an interview of 1998, elated Venu was still humble and stressed that he would like to improve more and bring his defects level per million even lower. There was no sense of accomplishment in his words rather an excitement of a person on the journey who just discovered his path. Four years down the line his group scored Hat-trick. Two of his other group companies also won the recognition. Venu this time graciously shared his success mantra. And I quote him “There is no instant mantra or extra effort that can prepare one for such an examination (required for the award), except the arduous and diligent process of consistently applying the process of TQC over a long period in every facet of operation,” What he meant was that starting from senior management all the way to shop floor worker shared a common goal towards quality, day in day out. And another secret was Prof. Tsuda the Japanese quality Guru, whom he literally revered. When still competing on cost plus margin was the norm that SUNDARAM should invest heavily in TQC culture was indeed commendable thing and showed character of an entrepreneur.

This event was an absolute game changer. Let me explain by giving another example of different industry. In early nineties India was seen as cheap destination to source software programming. Until one day, Motorola’s iridium development center near Ulsoor Lake in Bangalore stunned the world by announcing receipt of SEI CMM level 3.

The astonishment was all the more pervasive and deep as the only other institute to have achieved before Motorola was NASA which had got SEI CMM level 4. The myopic view on Indian outsourcing changed overnight. The spillover effect of this small event was so dramatic that within no time all the species (read software companies) got their act together and strived to achieve highest accreditation. This was definitely the single biggest milestone in the history of Indian IT industry. The same happened in Chennai. What was started by Venu’s companies had spillover effect. Currently out of 20 Deming application award received by India, almost two thirds or 13 to be precise are won by companies who have bases in Chennai. Not just that, many Venu’s were created on their ways which had a huge force-multiplier effect on the overall Chennai Quality.

I must here admit that Gujarat also has one jewel in this league. Hazira plant of Reliance is one of the proud recipients of coveted Deming application Prize; however I will leave the spillover effect analysis to readers.

It also helped TN as most of these companies were in automotive parts industry which is the most dynamic in terms of speed, competition and research. Chennai has mastered this. One of the major factors for Ford to decide for Chennai in as early as 1996 (much before even Sundaram got Deming) was the wide Varity of companies in Auto clusters locally developed diligently with passionate entrepreneurs, who loved their work and had respect for global quality and global norms.

In my previous article, I mentioned there are ten times more Japanese companies in Chennai than in Gujarat. The latest entrant to this expanding list is Yamaha. In spite of crippling infrastructure on the verge of collapse, the global bike maker decided to make Chennai its home for largest bike factory in Asia. It seems they plan to innovate with product and introduce something that is very new in Indian market in terms of body material and delicate design dynamics. After going through Karnataka, Maharashtra and Gujarat, they zeroed on TamilNadu.

The biggest pull-factor this time was, most able and market ready eco-system to support their innovation. Some lessons for Gujarati Entrepreneurs here.

This is a third article in the series. First one we pondered over thriving India within Stagnant India briefly discussing the backdrop of Indian reforms. With so many comments, I expanded my next article. Two States Different paths (http://deshgujarat.com/2012/05/13/part-two-indias-port-of-calling-diligent-tamil-nadu-and-credible-gujarat-two-states-different-paths/).The idea was to see Gujarat with the lenses of Global investors compared to TN. While it is undisputed that the peaceful environment provided by hard-working leader and able administration has given Gujarat lead and enviable infrastructure, the data on the FDI in discrete manufacturing says something else as of now. The tilt is in huge favor of TN makes an interesting analysis to study and ponder over. Hope you will like and enjoy this one too. In next article will ponder over the difference of Enterprenures and nature of Industries.

Previous articles in this series

India’s port of calling: Credible Gujarat and Diligent TamilNadu

Two ports, different paths: How to attract FDI

Previous articles by Somindu Shah

Narendra Modi’s Gujarat re-writes story of Indian Auto Industry

Narendra Modi’s Blitzkrieg: A savior for Brand India

Why Narendra Modi’s sweet offer is good for Nano Milk

Ahmedabad, 20 May 2012

Gandhinagar, 18 May, 2012

A delegation from Thailand, led by Thailand’s envoy to India Mr. Pisan Manawapat, met Chief Minister Narendra Modi today and discussed regarding expanding ties between Gujarat and Thailand for mutually developing the tourism and other sectors.

Mentioning that about 60,000 Thai tourists visit the places of Buddhist relics in India every year Mr.Manawapat expressed keenness in starting a Buddhist tourism circuit between Gujarat and Thailand. Accepting the suggestion of the Thai envoy Chief Minister suggested exploring possibility of starting Vishnu circuit between the two places considering the presence of ancient temples of Lord Vishnu in Thailand.

Both the dignitaries agreed to take ahead the mutual ties for developing tourism in Gujarat and Thailand. They also agreed to start air services between Ahmedabad and Bangkok.

Mr.Manawapat expressed the Thai companies’ interest in partnering the State in its housing and infrastructure projects including the Delhi Mumbai Industrial Corridor project. The Thai envoy said that a special importance will be given to the trade partnership with Gujarat in the business-investment seminar which is to be held in the coming September month in Thailand.

Senior officials of Gujarat government shared the State government’s development vision during the meet.

It is noteworthy that there is a great possibility of cultural exchange between Gujarati and Thai people. The international airport in Ahmedabad has been constructed by a Thai company.

New Delhi, 16 May 2012

Two PSUs of Gujarat have found place in the list of 10 most profit-making State Level Public Enterprises (SLPEs) in India, released by Minister of Heavy Industries and Public Enterprises Praful Patel today.

In the coveted list of 10 most profit-making State Level Public Enterprises (SLPEs) during 2007-08, Gujarat govt owned Gujarat State Petroleum Corporation is on third rank, while Gujarat Mineral Development Corporation is on seventh position.

State-owned Orissa Mining Corp. topped the coveted list of 10 most profit-making State Level Public Enterprises (SLPEs) during 2007-08, while Delhi Jal Board was the biggest loss-making firm during the period, according to a government survey.

Orissa Mining Corp earned net profit of Rs 1,052 crore during the 2007-08, while Delhi Jal Board registered loss of Rs 1,567 crore during the period, the National Survey on State-Level Public Enterprises 2007-08 revealed.

Orissa-based PSU Grid Corp of Orissa ranked second among the top 10 profit-making state PSEs, followed by Gujarat State Petroleum Corporation, Orissa Power Generation Corp and A.P. Industrial Infrastructure Corp.

Power-producing Maharashtra State Power Generation Co was ranked sixth, while Gujarat Mineral Development Corporation was seventh.

Maharashtra State Electricity Transmission Co, Karnataka Power Corporation and A.P. Power Generation Corp were at eighth, ninth and tenth position, respectively.

Among other firms making losses were Delhi Transport Corporation, Bihar State Electricity Board and Uttar Haryana Bijli Vitran Nigam.

Out of the 849 operating SLPEs, 579 enterprises furnished information on the performance of their respective units and information for another 46 units was obtained from the C&AG Reports for completing the survey.

During 2007-08, 357 SLPEs earned profits, while about 190 such units incurred losses.

In terms of net profit of profit-making SLPEs, Orissa led the states with a net profit of Rs 2,232 crore, followed by Maharashtra, Andhra Pradesh, Gujarat and Karnataka during the period under review.

Among the losses-making state PSUs, Delhi topped the chart with a loss of Rs 2,916 crore, followed by Bihar and Uttar Pradesh.

About the survey report

The National Survey on State Level Public Enterprises Survey (2007-08) published by the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, Government of India on the performance of State Level Public Enterprises (SLPEs) was released to-day in New Delhi by Shri Praful Patel, the Minister for Heavy Industries and Public Enterprises.

This is first Survey based on information furnished on-line by the SLPEs in the different States and Union Territories to the Department of Public Enterprises, Government of India. There were 849 operating SLPEs in the country as on 31st March, 2008, out of which 579 SLPEs furnished information on-line for the year 2007-08.

The total financial investment of and turnover in the 579 SLPEs stood at ` 3,29,079 crores and `2,39,453 crores respectively in 2007-08. The overall net profit of the 579 SLPEs stood at ` 865 crores during 2007-08. In terms of employment, the 579 SLPEs employed a total workforce of 14,13,646 employees during the year.

The National Survey on SLPEs (2007-08) has been published in two volumes as described below:

→ Volume-I (of the Survey) is in 2 parts. While Part-I dwells on the performance of SLPEs at the all India level, Part-II dwells on State-wise analysis of performance of SLPEs.

→ Volume-II (of the Survey) provides details on SLPEs for the 3 year period of 2005-06, 2006-07 and 2007-08.

The Minister will forward this report personally to all States and Union Territories for further action on the issues raised in the Report.

New Delhi, 16 May 2012

The rupee fell to new record low of 54.56 to the dollar before closing slightly better at 54.50 despite RBI’s intervention, raising widespread concerns about the health of the economy.

Earlier in the day, the currency recovered to 54.24/25 against the greenback compared to the 54.46 record low hit earlier in session, as stocks pared some losses and the euro posted a modest recovery.

Forex dealers attributed the fall to strong capital outflows in tune with the fall in local as well as global stocks where investors are increasingly avoiding riskier assets and moving to the new safe haven – the US dollar.

At the Interbank Foreign Exchange, the domestic unit opened sharply lower at 54.06 and mostly remained bearish. Intra-day it plunged to all time low of 54.56, surpassing the previous all-time low of 54.30 recorded in December last year.

Allaying fears, the Finance Ministry said there was no need to panic. “Rupee is falling due to global factors. There is no need to panic. The fall might continue till there is a certainty about the eurozone recovery. RBI is keeping a watch on it,” a finance ministry official said.

Dealers said RBI intervened at various levels in the market today but its efforts proved futile.

Meanwhile, RBI Deputy Governor K C Chakrabarty today said the RBI intervenes in the forex market only to curb volatility and not the slide. “We don’t intervene to arrest the rupee fall, we intervene only to arrest the volatility, you must understand the difference,” he said.

As the rupee touched a record low, Opposition questioned the government in the Lok Sabha on the steps being taken to tackle the situation. “The crisis in our economy is growing. Are we heading towards 1991?” senior BJP leader Murli Manohar Joshi said during the Zero Hour.

Gandhinagar, 15 May 2012

Bollywood star Ajay Devgam called on Gujarat Chief Minister Narendra Modi today in Gandhinagar.

Devgan’s visit was purely for business purposes.

He and his partners have invested money in a solar power plant in north Gujarat.

After meeting the Chief Minister Devgan said, he had not met the Chief Minister after his solar plant was commissioned in Gujarat. Today’s visit was a courtesy call, he added. He further praised clear policy of the state government and added that companies would like to make investment in Gujarat with such clear policy.

Ajay Devgn announces completion of his Solar plant in Gujarat

Ajay Devgan speaks on Ahmedabad, investment and Narendra Modi (Video)

Ahmedabad, 15 May 2012

UAE based Etihad Airways will connect Ahmedabad and Abu Dhabi from November 2012 onwards in a bid to enhance commercial and leisure travel.

The airline has announced that it will to add Ethiopian capital, Addis Ababa and Gujarat’s de-facto capital Ahmedabad to its network in November 2012.

The two new cities will expand the airline’s reach to 86 passenger and cargo destinations around the world.

The new routes will each be served by an Airbus A320 aircraft.

The new service will offer nearly 1,000 seats a week into Ahmedabad according to Etihad Airway’s President and CEO James Hogan.

Ahmedabad, 13 May 2012

Thanks to overwhelming response and extremely intelligent insight, i was compelled to ponder further to look India”s growth centers from investor’s viewpoint. Its sequence to past ARTICLE (LINK HERE) and prelude to further deeper analysis. I am leaving floor open for further debate and idea exchanges. Hope you like it.

I like to read Sydney Morning Herald for their cricket stories, so was pleasantly this February to read a story on Gujarat with word Credible associated. Aptly titled, Role model for a nation on the march, it stresses Gujarat CM’s commonsense policies and why India would need him in spite of the media implanted image. (Read: http://www.smh.com.au/world/role-model-for-a-nation-on-the-march-20120203-1qxei.html)

The author Hamish Mcdonald is well-known India hand, whose one of the book (The Polyester Prince) on Great Dhirubahi Ambani was an excellent piece of investigative writing that in some part inspired even the movie GURU.

Hamish has following things to say for Modi as an outstanding performance card for an Indian leader.

With economic growth averaging about 10.5 per cent over Modi’s decade, the state is increasingly looked upon as the model for a ”credible India” – a play on the ”Incredible India” slogan of the national tourism agency – where bureaucratic and political obstacles are cleared for sustained high growth.

He also notes that, in infrastructure, Modi has taken the Indian lead in private-public sector partnerships. As well as transport, power and water, he has pushed new types of infrastructure. There is a 2200-kilometre gas grid. Gujarat has the world’s second-largest optical fibre network, with broadband connectivity in all its 18,000 villages.

The article ponders over his able leadership and infrastructure created during Modi’s decade for overall growth.

If pervious vibrant summits are of any yardstick it did invite many industries which were fed up with delays at other states. But still Discreet Industry from East Asia is one area where his administration is trying hard to woo. Not only he is passionate about solar energy, his administration is also fond of the land of rising Sun. In 2007, just after the resounding success of vibrant Gujarat, first country Modi visited was Japan. Gujarat is banking very heavily on Japanese investment and rightly so. The Delhi Mumbai Industrial Corridor (DMIC) being planned in partnership with Japan will be major pivot for the investment.

Of all the countries, Japan has shown way to rest of Asia on how to create a growth based economy and society. Their model is studied across and replicated in many success stories of Asian economies. No doubt then both center and state governments are keen to have them partner with. Gujarat’s administration also understands and looks to attract friends from east to invest. The consistent efforts are bearing some fruits.

Maruti-Suzuki’s proposed plant, along with unique and first of the kind infrastructure investment by Japanese/Singapore consortium in Dahej Desalination plant is a landmark event for Gujarat. To add more weight, Japan’s External Trade Research Organization (popularly known as JETRO) also signed MoU with Gujarat Govt. for developing second of its kind Japanese companies specific Industrial park, after Neemrana in Rajasthan. These are just few of the coming events that are casting their shadow which may augur well for Gujarat.

The hope notwithstanding, it is prudent to check statistically how does Gujarat fare?

As per the official list of Japan Chamber of Commerce and Industry in India (JCCII) so far Compared to north and south, only 29 companies are counted as present in Gujarat, compared to whooping 286 in Chennai. Modi knew the limitations and tried to assure investors that Atithi Devo Bhava is State’s mantra in January interactions and that his administration will go out of their way, to make sure investors are comfortable, Because if they are happy and contend then only state will benefit. While that did look a hopeful statement, it is prudent to check current status.I just gave example of Chennai above with clear winner by all counts having 10 times more companies invested than Gujarat, what attracts them could actually unlock some answers.

Post Monsoon, one towering seven star luxurious Hotel is slated to dot ever crowded Anna Salai Road. The construction is racing with parallel site of Chennai Metro across the road. La Grande ITC Chola Grand will be the latest Jewel in the crown of otherwise conservative Chennai. Not only has it added to prestige, it gives added assurance to global investors on faith by hospitality sector. This is in continuation of many international hotel chains crowding Anna Salai Road (the main road of Central Business Distrcit, like Ashram Road of Ahmedabad). The number of flights leaving Chennai for global destination is constantly on rise and more and more companies line up every day to invest in Chennai. Seeing increased interest from Japanese investors, JETRO opened their office in Chennai in October-2010. In short span of less than two years, they have seen on an average 50 companies sending them serious inquiries for trade and investment related queries on weekly basis, boasted local JETRO Chief in one of the media interactions.

The compelling rush was evident when Japanese cabinet METI minister made quiet visit to Chennai and announced interest in Peninsular Region Integrated Development Economy (PRIDE) at the cost of much hyped DMIC. It was a bit rare undiplomatic gesture by Japan that the METI minister did not stop by Delhi to meet his counterpart Mr. Anand Sharma and rather made Chennai his only destination before moving to South East Asia. He was seen inaugurating JETRO’s business support centre, an incubation hub for new companies.

The Japanese team moved in swiftly and started taking direct charge of driving three state Governments. The PRIDE is to develop NH4, connecting with Karnataka, Some parts of Andhra Pradesh and Northern Chennai. All regions would be linked with Port of Ennore in north of Chennai. The port of Ennore seems to be their choice and are keen to almost adopt it. Even recent meetings between PMs of two countries, development of southern region with Ennore port as pivot was discussed and included as an agenda from Japan side.

Minister also observed signing of MoU for one state of the art integrated Industrial Township mainly catering to the needs to Japanese SME sector and to be promoted by Japanese and Singaporean consortium. The new park in spite of apathy by local Govt may provide iconic status to Chennai as a manufacturing hub.

The Chennai Craze baffles many considering the crippling infrastructure of State and collapse of policies with every regime change. Land Acquisition is as difficult as anywhere if not as bad as West Bengal. Least said the better for Water and Electricity. The stampede by investors is an enigma considering all the negative signals from infra and policy front. So what is it that makes Chennai Tick?

Gujarat has strong leader supported by efficient administration as well as robust infrastructure. Is it enough to compete globally? What are the lessons for Credible Gujarat when we see in the mirror called TamilNadu? I shall ponder over them in next analysis. Kindly watch for this space.

About the author:

Somindu Shah born during mixed economy, graduated in liberalized one. Economist by education, Global Investment Adviser by profession. Studied, lived and worked in East Asia. Travel extensively to many corners of India and occasionally to world. He blogs his thoughts on few sectors of economy, and growth centers of India. His writings get tilted on Gujarat, as he feel there is too much myopic views on the state but focus remains from a global viewpoint and in the backdrop of India scenario. The alias Somindu is a tribute to his parents who were Gujju by Heart, global by nature and Gandhian by deeds and soul.

Previous articles by Somindu Shah

Narendra Modi’s Gujarat re-writes story of Indian Auto Industry

Narendra Modi’s Blitzkrieg: A savior for Brand India

Why Narendra Modi’s sweet offer is good for Nano Milk

Somindu Shah can be reached on somindu.shah@gmail.com or on follow him on Twitter @SominduS