Saurabh Patel shares interesting figures on Gujarat’s progress and more

Gandhinagar, 5 March 2013

During the discussion on annual budget, Energy minister Shri Saurabh Patel today announced some interesting figures on Gujarat’s economy. The are following:

-As per the Gujarat Fiscal Responsibility Act – 2005, the state can borrow 27.1% of Gross Domestic Product, but Gujarat’s debt in year 2012-13 is 19.63% which is lower than the permitted limit. In Andhra Pradesh it is 22.4%, Maharashtra 21%, West Bengal 36.3% and Rajasthan 28.74%.

-The state government has been succeed in lowering down the average borrowing cost. In 2001 it was 13.50 which is 8.92 now in year 2012-13. As per today’s GDP, the state has gievn outstanding guarangtee of Rs 7,234 crore which was Rs 16,000 crore in past. Whenever Gujarat’s bonds come in the market, the interest is lesser than other states which clearly shows that due to sound economic stability, Gujarat gets loan on lower interest rate and that too without giving guarantee.

-In ninth five-year-plan time Gujarat’s GDP was 2.08% due to earthquake while national GDP was 5.5%. In the period of 2002-07 this rate was 10.97% while nationally it was down to 7.7%. During 2002-12 Gujarat’s this rate was 9.51% while nationally it was 7.5%. Thus Gujarat’s GDP average in 2002-2012 span is 10.24% while nationally it is 7.87%. This shows continuous development in Gujarat.

-Gujarat’s Agricultural growth which was less than zero before ten years is now in double digit while national average agri growth rate is 3.2%.

-The central government supplies APM gas at cheaper rate only to industrial houses, and the state has to buy gas for home-usage from open market.The Gujarat High Court has ordered the central government to provide gas to Gujarat at same rates as Delhi and Mumbai. If central govt is ready to follow the order, the Gujarat government is ready to cut CNG price by 30%.

-Gujarat’s gas based power stations don’t get enough gas. Therefore the state is able to generate only 530 MW power through its gas based power stations against installed capacity of 4172 MW. Thus 3642 MW power generation is on halt, and only 12% of installed capacity is functional.

-Gujarat faces injustice in oil royalty payment too. In 2010-11 Gujarat was paid royalty of Rs 2324 per tone, while Assam was paid Rs 3330. In 2011-12 royalty to Gujarat was down at Rs 1798 while Assam was paid Rs 3682. In 2010-11 the income was Rs 941 crore only.

-Gujarat has to get Rs 4,000 crore from central government for CST. In total, the states of India have to be paid Rs 34000 crore, but the centre has made allocation of only Rs 9000 crore. This shows, Gujarat is not going to get anything more in next year.

-The centre has increased oil prices 18 times in last three years. Oil prices are up by Rs 22.50 in total. This is root cause of price rise. Central government has cut the budget by Rs 30,000 crore which shows that oil prices will see further hike and therefore inflation will also go up further.

-No central government unit in Gujarat provides 85% employment to Gujarati local people, while in Gujarat’s companies 67333 Gujaratis are given job against 68336 total strength of employees. This shows 98% employment to locals.

-Gujarat government gets Rs 665 per Horse Power(HP) upto 7.5 HP, and Rs 807 per year per HP for 7.5+ HP. The state government has not increased tarrif for farmers in last ten years even against frequent hike in coal and gas fuel. In 1996-97 to 2002-2003 only 2,000 MW power was generated in Gujarat while in just next two years, the figure reached 3494 MW.

-This year the state government has given 83000 power connections and by the end of this year more one lakh power connections will be given. in 1986-87 per unit power generation cost was 87 paisa per unit and 58 paisa were charged from farmers, while present government charges only 50 paisa per unit to farmers.

-In entire country, Gujarat state’s power purchase agreement is best. Even ater increase in coal, foreign exchange and transportation charges, the state will continue to get power without any further burden for next 26 years as decided in the agreement. The state purchases power from the companies as per the 26 years agreement at Rs 2.35 and Rs 2.40. These Gujarat based power companies have sold power at much higher rates to Maharashtra, Rajasthan and Haryana.

-In past power connection upto 300 meter was free, and after that every meter cost was Rs 100. Suppose if the distance was 500 meter, then the cost involved was Rs 20000. At present one has to give Rs 8820 per ten horse power and Rs 14820 for 20 horse power for any distance.

-The state has allocated Rs 24,000 crore which is 42% of entire Rs 59,500 crore annual budget to social services sector. Education sector has been allocated Rs 3850 crore which is 43% up compare to last year.