Speaking to a gathering of investors from over 26 countries, the organisers of the event said, Modi repeatedly emphasised the role of good implementation while outlining some new ideas as well. Some of the prominent investment firms represented in the meeting were Fidelity, Goldman Sachs Asset Management, Carlyle Global Market Strategies, Deutsche Asset and Wealth Management and GLG Partners.
Talking of decentralisation and second-generation reforms, Modi said the Prime Minister and his Cabinet could not possibly shoulder the burden of growth, it had to be the PM along with the CMs. If I come to power I will ensure states get more freedom, I understand their pain. So far, most of the Prime Ministers are from the Delhi environment, he said. The chief minister of Gujarat said, Like a doctor prescribes a new test for each new problem, we ordain a new law for each problem I think party manifestos should talk of how many laws they will abolish if they come to power.
One of the reasons why soliciting investment has become a bad word, Modi felt, was that people think investment is only about industry, that only a few will benefit. However, the need and scope for investment in agriculture was also huge and had tremendous transformational potential. Think of the need for investment in education, or in biotechnology or environment technology IT is no longer the buzzword, it is now BT and ET, Modi added.
The example of Gujarats Solar Mission was cited by him as an example of how much investment was needed, how implementation and not incentives were the key to attracting this, and how careful thought needed to be put in by policy makers and yes, this was, he said, a good example of decentralisation.
Soon after the Gujarat government announced its policy and offered R13 per unit of power, the Centre came out with its policy offering R19 but investors came to Gujarat, not the Centre.
Because of planning and implementation. We put the solar panels on top of the canals, he said, which reduced evaporation of water; it saved us the cost of finding land for the panels, and because it was on the canals, it was near villages and so, investors saved on transmission losses. And, to the delight of investors in the audience, Modi said that since the area under the solar panels was cool, this alone increased solar output by 16% which every investor knows is the best return you can get anywhere in the world. As a result, there is so much solar power, its rates are falling to R7 a unit, while those of thermal power are inching up towards this level.