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#21 |
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THE WORLD!!
Join Date: Nov 2004
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Gujarat Electricity Board (GEB) turnaround
One of the biggest achievements for Gujarat has been the turnaround of its major PSUs (public sector units). Whenever I've been to Gujarat, my cousins have immediately attributed it to Modi. However, I've not found a single article attributing the succeess directly to Modi. Though, there have some indirect and direct references to the Gujarat government's policies in helping in turning these sick units around. One of the policies is to try to get the sick units profitable and if not possible by the government, then to sell them.
Here's an article that talks of the tremendous recovery (and how it was done) by the Gujarat Electricity Board. Good case study.. http://www.thehindubusinessline.com/...1303680300.htm Ahmedabad , June 12 The Gujarat Government has successfully turned around the Gujarat Electricity Board (GEB) which was about to go sick five years ago, to enable the latter to earn a net profit of nearly Rs 200 crore. And that too, without raising power tariffs, the Minister of State for Energy and Petrochemicals, Mr Saurabh Patel, told Business Line. Financial prudence, economy measures with increasing revenue and reducing expenditure, and some really tough and politically-sensitive steps, such as completely ignoring the pleas of politicians, including those of the ruling BJP, have paid handsome dividends to GEB. The Board has seen one of the most talked-about turnaround in recent times with this year's profit of Rs 200 crore replacing the whopping cumulative loss of Rs 2,542 crore in fiscal 2000-01. Mr Patel credited this turnaround to the "political will" of the Gujarat administration . . The Board officials were directed to deal sternly with cases of power theft and non-payment of bills either by individuals or by companies. Action against violators He said the State Government set up five regional special police stations to deal with such cases and punished the violators. Interestingly, it even appointed 500 retired army personnel to keep the power offenders in check. Thousands of theft cases were detected and disconnected; they were reconnected only after the violators, including companies, paid their arrears. A number of violators were convicted by the courts. Only recently, a woman in a North Gujarat district was also convicted with a year's imprisonment. The GEB appointed managers with accountability clearly given to them. As a result, nearly 20 lakh connections were checked and rechecked annually. The GEB officials, accompanied by police, went from village to village and town to town at night to check power theft, braved the irate people who attacked them at several places and protested in all possible manners. Once, an official was even kidnapped and kept in bondage until rescued by the police. Despite these, the Board went ahead with stern steps, Mr Patel pointed out, in accordance with the provisions of the New Electricity Act that empowered the authorities to lodge criminal cases against power thieves. The Board itself was split into four regional power generation companies, four regional distribution companies, one transmission company and one parent company. Besides, the power purchase agreements (PPAs) with independent power producers (IPPs) were re-negotiated to the benefit of the State. Under this policy, adopted in 2003-04, the Government renegotiated PPAs with two private and two State-owned power producers. As a result, a total of Rs 559 crore was saved on this score alone and all outstanding dues were wiped out. Additionally, GEB also succeeded in restructuring loans worth Rs 4,130 crore and persuaded lenders to reduce interest rates from 9.51 per cent in 2003-04 to 8.6 per cent in 2005. With this measure, it managed to save Rs 270 crore on interest payments annually. In some cases, even the quality of fuel was experimented with. In the power generating stations, GEB reduced input costs by using washed coal or the one imported from Indonesia. Together, these measures saved nearly Rs 160 crore. In view of these power reforms, turnaround and timely payment of pending power purchase bills, the National Thermal Power Corporation gave an incentive to the tune of Rs 312 crore to GEB whose revenues began to grow by leaps and bounds. From Rs 786 crore in 2004, it grew to Rs 1,029 crore in 2005 and Rs 1,300 crore in 2006. According to the Central Electricity Authority, the per capita consumption of power in Gujarat was 1,321 units in the financial year 2004-05, which was double the national average. Mr Patel also claimed that Gujarat was the only State in the country in which all 18,000-odd villages were connected to a 24-hour power supply with no load-shedding anywhere. In Ahmedabad and Surat, power generation and supply had long been privatised. |
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#22 |
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THE WORLD!!
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18000 Villages - 24 hours of electricty
Here's an article that highlights how Gujarat achieved 24-hour electricty for all of its 18000 villages.
http://intellibriefs.blogspot.com/20...g-gujarat.html Narendra Modi's Shining Gujarat Shining Gujarat Author: Shrikant Modak Publication: Business India Date: December 17, 2006 Introduction: Deftly managing its resources, Gujarat's apex power body has overcome power shortages and losses Gujarat's glowing. The state's apex power utility has not only staged a recovery, it's now the only one in India to guarantee three phase 24 hours electricity supply to the rural households and eight hours uninterrupted supply to agricultural consumers. Gujarat Electricity Board (GEB), which had been reporting losses until 2004, came to black last year. The board's financial losses were Rs. 1,900 crore in 2003-04. In 2004-05 these were down to Rs. 935 crore. In April 2005 the state unbundled its electricity sector with that GEB became Gujarat Urja Vikas Nigam Ltd (GUVNL), a holding company with six unbundled companies under its umbrella (generation and transmission companies and four distribution companies). The improvements in the utility continued even under this new avatar. GUVNL posted Rs. 187 crore profits in 2005-06. If this year's projections are to be believed it will report even better profits around Rs. 400 crore. The entire process, "Started five years back," says Saurabh Patel, Gujarat's energy minister of state with the independent charge. "Then we were placed seventh in the power sector rankings of utilities in India and now we are second, behind Andhra Pradesh, "says Viiaylaxmi joshi, CMD Of GUVNL. What's contributed to this success? There are several factors in fact. "One that stands out most recently is the state's Gujarat Jyotigram Yojna that assures 24 hours three phase power supply to the rural residential consumers and eight hours guaranteed supply to the agricultural consumers," claims a GUVNL official. The state very recently announced the completion of this Yojna (covering 18,000 villages and 9,700 hamlets) at a function attended by President, A.P.J. Abdul Kalam, near the heritage site of Chapaner town. Its impact! "A fact that more than 1,50,000 rural public came for the event will have obviously boosted Modi's political image," say chief minister, Narendra Modi's, admirers. But, in more mundane economic terms, "its impact on technical parameters like the T&D losses has been large," say GUVNL officials. At a demographic level, a survey carried out by IRMA at the behest of CII (Confederation of Indian Industries) reveals a reduction in rural to urban migration. "The assured availability of electricity has opened up income earning avenues to the rural public that weren't there earlier," explains Patel. Even consumer durable companies have felt its impact. For example, John Verghese, proprietor of Ahmedabad-based consumer durable retail chain, Sales India, says, "There has been a significant increase of rural consumers to our showrooms in the last year." Haier regional manager, Sanjay Ghadial affirms a similar trend. "Our sales to rural areas have gone up significantly," he says. Political opportunity Patel says, "Wherever we toured in the rural areas, people were demanding 24 hours electricity supply." He adds, "The question before us was then how to provide this? A simple answer, since agriculture consumers were subject to load shedding, was to separate the residential consumers by putting them on separate feeder. However, sceptics within the administration dismissed this as unfeasible. But Modi having spotted a political opportunity wasn't the one to let it go. A sample of 50 villages was chosen to test the viability of the proposal. Its success eventually convinced everyone that this was the only way to assure 24-hour power supply to the rural households. In a short period of two-and-a-half years, the state spent Rs. 1,000 crore to erect 12 lakh poles to connect rural household to a separate feeder. Modi, avers, "jyotigram is the only solution for the survival of rural India. It can create millions of jobs." Though his detractors dismiss this as a political-speak the scheme itself has proved a blessing to the state's electricity board. Joshi says, "By shifting power supply to the agriculture, which constitutes 40 per cent of the state's load, from peak to the off-peak hours, the state's power supply scenario has changed significantly." Among its several benign effects, the most important is the end to load shedding in the state in the last couple of years. No power thefts Earlier there was only one feeder catering to both rural residential and agricultural consumers. Since agricultural tariffs were subsidised there was a general tendency to draw electricity from the same connection even for residential usage. Separating the feeder lines and restricting supply to the agriculture to the off-peak hours has not only reduced this, it has, in fact, done much more. "When there is no current in the lines not only can there be no thefts but also no line losses," says a GUVNL official. While theft may not have gone away entirely, the incentive to steal power has diminished. Further, all the feeders now have electronic meters, which makes it possible to attribute losses more accurately to the theft and deal with it. As for the agriculturist electricity is guaranteed for eight hours at a fixed time of the day in each area. Since supply hours are restricted, many have gone for drip irrigation wherever agricultural pattern has suited them. Rural revenues have gone up not only because rural residential consumers now pay for what they consume but also because they pay the same tariff as the urban consumers. 'There has been an increase of 13 per cent in the total revenue of GUVNL, although the total demand itself has gone up only by 7 per cent in the last two years," according to a GUVNL official. However, there are other factors, which too have contributed to the reduction in the sector's losses. For example, on the central side GEB took its issues with NTPC (National Thermal Power Corporation) to CERC (Central Electricity Regulatory Authority) and got it to streamline the former's cost structure. It also negotiated with the IPPs (Independent Power Projects) and got them to streamline their cost structure. As far as its own cost reductions initiatives are concerned, as said earlier, it reduced T&D losses by 9 per cent; cost of finance by 2 per cent (from 10.67 per cent to 8.6 per cent by substituting costlier loans with the cheaper loans); improved PLF by 3.44 per cent (to 72.28 per cent); and brought down auxiliary consumption at its generating stations by 4.84 per cent, adopting efficiency improvement measures. It also got Rs.231 crore and Rs. 148 crore in incentives from the Union power ministry respectively in 2003-04 and 2005-06 for reducing its balance sheet losses. Similarly, improved load management left it with a surplus, which it sold in the interstate market at higher rates. A misfortune of being successful is that the Union power ministry soon diverted Gujarat's 200 mw power share in the central power utilities to the neighbouring Maharashtra that's been reeling under power shortages since last year. The total financial implication of this to GUVNL in the current year will be Rs. 562 crore, as the state's own demand has grown and it now has to buy power from the market at Rs. 6.6 per unit against Rs. 3 earlier. Though the decision to transfer power was meant to be ad hoc the state officials fear that this may acquire permanent status. Whatever, a remarkable aspect of GUVNL'S turnaround is that it has achieved what it has without any general tariff increase in the last six years. Moreover, improvements have come while preparations were on for unbundling in the latter phase of the recovery. Unlike neighbouring Maharashtra, unbundling went through smoothly with complete cooperation from the unions. So far the state has managed its power scenario by judiciously balancing its resources. But, as demand's growing, these options will soon run out. "To maintain the tempo of economic development we are planning to make Gujarat power surplus," says Patel. How? Additional 11,563 MW generation capacity addition is being planned over and above the 9,000 MW currently available to it from its own, NTPC and IPP sources in the next five years (Gujarat State Electricity Corporation and the state PSUS together will add, 4,000 MW; IPPS, 4,900 MW; wind power, 500 MW; and NTPC the rest). |
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#23 |
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THE WORLD!!
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Gujarat Alkalies and Chemicals (GACL) - turnaround
http://www.hinduonnet.com/fline/fl22...8003012200.htm
Environment and industry IT is the largest producer of caustic soda in India, and also one of the biggest turnaround stories in the public sector. And, despite being in the chemicals industry, it is a company that carries its passion for protecting the environment o its sleeve. Gujarat Alkalies and Chemicals Limited (GACL), a Gujarat government-promoted company, has shown the way to the highly polluting chemicals industry that it is a sector where money can be made and the environment spared the damage caused by pollution. Today, if one travels to the company's complex on the outskirts of Vadodara, one would not be blamed for thinking that it is a brand-new facility. The spanking-clean complex represents the style of functioning that has been adopted by the company in recent years. Not long ago, a heavy stench of chemicals used to hang around the complex and litter used to be strewn along the road. Today, the stench is gone and the campus is spotlessly clean. The large number of trees at the plant highlights the company's credo, "Ours is green attitude". The same is true of the company's performance; Its fortunes took a nose-dive in the mid-1990s, and it slipped into the red in 1998-99. After bleeding for four years, GACL came back into the black in 2002-03, with a modest profit after tax of Rs.28 crores on a turnover exceeding Rs.1,000 crores. The next year, the company consolidated its position and the profit rose to Rs.63 crores. Aided by an increase in the demand for caustic soda, GACL has been growing and its balance sheet looks much healthier now. But the management of GACL, led by its Managing Director P.K. Taneja, is not one to rest on the comfort of having the company running in the black. As a forward-looking company, GACL has chalked out modest expansion and product diversification plans to continue on the growth path with sufficient muscle to insulate it from future shocks. "The company was set up in 1973. Thirty years is a long time, long enough to test the character of any organisation. Be it recession, inflation, increased competition or changing governments, we have lived it all. And for sure, all the turbulence has made GACL a stronger and progressive company," said Taneja, an officer of the Indian Administrative Service. From an initial capacity of 37,425 tonnes per annum (TPA) of caustic soda, GACL has grown to be the largest producer in India, with a capacity of 2,70,000 TPA. The company is spread over two complexes, at Vadodara and Dahej. Its turnover stood at Rs.1,075 crores in 2003-04 and it is likely to move up to Rs.1,200 crores in 2004-05. Knowing that in the future there may be new hurdles to cross, GACL has started to diversify and expand its existing infrastructure to consolidate its supremacy in chlor-alkali and other integrated downstream products. "All our plans have been chalked out with the objective of becoming a fully integrated player in the chlor-alkali segment. Expanding capacities will enhance GACL in our chosen basket of products and give the company the capability to make speciality chemicals to insulate it from the vagaries of industry cycles," said Taneja. The plans include an evaporation unit of 240 tonnes per day (TPD) at a cost of Rs.70 crores at Dahej, to increase the caustic soda production from the existing 240 TPD to 436 TPD. A 12,000 TPA hydrogen peroxide plant is also being set up at Dahej to utilise the surplus hydrogen generated during the production of caustic soda. This project involves an investment of Rs.100 crores and will go on stream by October 2006. The hydrogen peroxide plant is expected to start paying back to the company in five years. The company's projects on hand include a 100 TPD caustic soda flaking capacity to convert liquid lye to solid flakes that can be easily transported, and poly aluminium chloride to insulate the company against market fluctuations with respect to chlorine and hydrochloric acid. The production of caustic soda lye at Vadodara will increase by 40 TPD and a new 200 TPD capacity will be added at Dahej. GACL is also exploring opportunities in the agro-chemical industry. As GACL treads the growth path, technology upgradation and achieving greater efficiencies is a constant effort. While the capacity utilisation is about 70 per cent in the caustic soda industry, GACL's plants are working at almost 100 per cent capacity, thereby utilising their assets to the fullest extent. GACL's commitment towards the environment is undying. The company feels that its credo of a green attitude is not a mere slogan. A dedicated senior executive heads the Safety and Environment Department to ensure high standards of safety and to maintain a harmonious relationship between the environment and technology. The company has planted more than 27,000 trees, which are taken care of regularly. Over 1,000 saplings are planted every year. Rainwater harvesting and collection is a part of routine activity at GACL. This water is used to maintain the green belts. GACL has been a pioneer in adopting environment-friendly and energy-efficient technologies. It converted to membrane cell technology from mercury cell technology way back in 1989, and since 1994 all the plants have been running on mercury-free membrane cell technology. For the disposal of solid waste, GACL has secured a dedicated landfill site conforming to the Hazardous Waste Management Act. Being a member of the Effluent Channel Project, it releases its liquid effluents in this channel only after ensuring that the necessary parameters specified by the Gujarat Pollution Control Board are met. |
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#24 |
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THE WORLD!!
Join Date: Nov 2004
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More turnaround stories
Here are more turnaround stories talking about:
Gujarat State Fertilizers & Chemicals (GSFC) Gujarat Mineral Development Corporation (GMDC) Gujarat Industries Power Co Ltd (GIPCL) Gujarat Alkalies & Chemicals Limited (GACL) http://economictimes.indiatimes.com/...101.cms?epaper http://timesofindia.indiatimes.com/a...how/909099.cms |
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#25 |
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prolific lurker
Join Date: Mar 2006
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very good initiative
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#26 |
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THE WORLD!!
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Thanks. Was a long time coming..
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#27 |
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THE WORLD!!
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Gujarat growth rate exceeds 12% in 2006 - 07
http://timesofindia.indiatimes.com/N...ow/1853048.cms
AHMEDABAD: If India's economy is expanding at over eight per cent, it is probably because the economic powerhouse of Gujarat has ended 2006-07 with a growth rate of more than 12 per cent. The state government has claimed that this healthy increase in the Gross State Domestic Product (GSDP) has drawn praise from even Planning Commission deputy chairman Montek Singh Ahluwalia. Statistics show that Gujarat where enterprise runs in the veins of people is where the India story is really unfolding. Boosted by a good monsoon last year, the agriculture sector has posted a robust 10.2 per cent growth, taking the overall economic growth of the state to 12.17 per cent in the last financial year, a Gujarat government press release said. A senior economist, however, told TOI that since Gujarat's inflation is higher than the national average, which is hovering around 6.5 per cent, it is necessary to deduct the rate of inflation in order to arrive at the real growth rate. The state, which incurred an expenditure 22 per cent higher than the original outlay in 2006-07, has been allocated Rs 16,000 crore for this fiscal an increase of 25 per cent than the approved Plan outlay of last fiscal. At a meeting held with Gujarat officials in New Delhi on Monday, Ahluwalia complimented the state for economic reforms and for working toward creating an investor-friendly environment, the press release said. State government figures show Gujarat has grown at 10.6 per cent in the past four years. From a revenue deficit of Rs 6,731.54 crore in 2001-02, it recorded a surplus of Rs 1,802.85 crore in 2006-07. In the Plan, allocation for the social sector increased 41 per cent to Rs 6,265.05 crore from Rs 4,426.24 crore last year. |
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#28 |
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THE WORLD!!
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Or did it??? Tabloid of India..I mean Times of India contradicting itself and at its anti-Modi best..http://timesofindia.indiatimes.com/a...ow/1858701.cms Why is Modi misquoting growth figures? GANDINAGAR: Playing politics with growth rates appears to have become a favourite pastime with the establishment in Gujarat. Earlier this week, Chief Minister Narendra Modi declared that the state's economy grew by 12.17 per cent in 2006-07, indicating how this was 3 per cent higher than the national average. First it is necessary to put the record straight. The growth rate of 12.17 per cent quoted by Modi is for fiscal 2005-06, not 2006-07. The 'Socio-Economic Review, Gujarat State, 2006-07' released by the government recently mentions this in black and white. Latest calculations by the Directorate of Economics and Statistics, government of Gujarat, which have not yet been made public, suggest that the growth rate of the state's economy in 2006-07 was just 8.11 per cent far away from the much tom-tommed "double digit growth". In fact, this is 1 per cent less than the estimated national average! This is not the first time these statistics have been misrepresented. In 2003-04, early estimates said the state's growth rate was 15.4 per cent. However, the final figure for 2003-04 turned out to be lower 14.77 per cent. A year later, in 2004-05, the growth rate plunged to 7.38 per cent, less than the national average of 7.5. After meeting with the Planning Commission in New Delhi on Monday, Modi also said Gujarat's agriculture was growing at the rate of 10.2 per cent. Again, the figure he quoted was for 2005-06. Is the Modi regime juggling with figures all because of the elections? |
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#29 |
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Registered User
Join Date: Apr 2007
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Kalpasar Project
Latest news from Feb 07
http://cities.expressindia.com/fulls...?newsid=222953 (poor picture, but its the only one I could find) ![]() For anyone not familiar with it, the idea is to create a massive Dam on the Gulf of Khambhat/Cambay to act as a reservoir for fresh water, as well as acting as a Hydro-electric Dam and a Road/Rail link from Saurashtra to the South Gujarat region. There aren't many articles about it on the net from the Indian press, but then again, its a Gujarati project so what do you expect! I hope this project doesnt suffer any more setbacks, I think its a ridiculous situation that a project first thought of in 1975 is only scheduled to start in 2010! Modi thinks it will take 10years to build, other estimates say 20! So thats potentially 55years after conceptualisation.
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#30 | |
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Registered User
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Quote:
Gujarat government's finances were already stretched in Sardar Sarovar. Government was almost bankrupt up until 2000-2001 (effect of 5th pay commission in 1996). Additionally, fear of environmentalists was way too big to ignore. Government just couldn't afford to open another front. Now since most of Sardar Sarovar dam is complete (last 10 meters left), government is moving ahead on this. Plus government's finances are in a good shape and Gujarat's international credit rating is better now too. Unless there is a regime change in Gujarat later this year, this project should start in couple of years. |
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#31 |
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Registered User
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Thanks for the info! Seeing as regime change unlikely, thats really good news for the execution of this important project!
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#32 | |
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Quote:
don't think there will be a regime change. but there will def be the Patkar challenge for Modi!!! and the Leftists will prolly shamelessly side with Patkar again even after the embarrassment they got in WB... |
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#33 |
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THE WORLD!!
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Apparently there's a whole website dedicated to the Kalpasar project ![]() http://www.kalpasar.gujarat.gov.in/ If it is to be believed, the dam will be 64kms long! |
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#34 |
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THE WORLD!!
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Red Carpet NOT Red Tape in Gujarat
Red Carpet NOT Red Tape in Gujarat: Modi
http://timesofindia.indiatimes.com/R...ow/1590356.cms Highlights of Modi's February speech: -Gujarat aiming to surpass China in ceramics -Modi urging Gujaratis to learn Chinese and requesting language experts from China -Aiming for a transparent administration |
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#35 |
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Registered User
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ToI Ahmedabad April 10, 2007.
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#36 |
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Registered User
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ToI Ahmedabad April 10, 2007.
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#37 |
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Registered User
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Economic Times - April 10, 2007.
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#38 | |
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Growth rate: Gujarat leads rest of India
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#39 |
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THE WORLD!!
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World's largest pumping station for Saurashtra
http://www.baroda.com/glimpses.html#Narmada
Narmada Water For Saurashtra: Five pumping stations will lift 630,000 litres of water per second from the Narmada canal and release it into the Saurashtra branch canal. The first pumping station is now functional. This pumping station will deliver Narmada water to about 5000 villages of Ahmedabad and the Saurashtra region and irrigate 540,000 hectares of land. Set up by Pune's Kirloskar Brothers Ltd. for the Sardar Sarovar Nigam Ltd., it is claimed that this is the largest pumping station in the world. Pumps have to be used to lift the water because the Narmada canal is at a lower level than the Saurashtra region. The Saurashtra Branch Canal (SBC) has a length of 104.46 kms and is the largest branch of the Sardar Sarovar Project canal system. The SBC, designed to carry 424 cubic meters of water per second, will provide water to 4877 villages and 90 cities and towns in seven districts of Saurashtra. |
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#40 | |
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THE WORLD!!
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India's first franchise post offices
http://www.baroda.com/glimpses.html#Franchise
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