Documente Academic
Documente Profesional
Documente Cultură
(JANUARY 2010)
1
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
PREFACE
As a part of the course curriculum, the PGDM students are required to work
in groups and prepare a Grand Project. The objective behind preparing this Grand
Project is to relate the management theories taught in class room to their practical
application.
The preparation of this Grand Project is based on the information collected
from various secondary sources such as the internet, written and published
document.
Though we have tried our best to prepare the Grand Project, there may be
some errors of omissions and commissions, which may please be excused.
2
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
ACKNOWLEDGEMENT
3
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
TABLE OF CONTENT
1
Executive Summery
Introduction 6-10
Economic Development in Gujarat.. 11-14
3
Research Design
15-16
History..
17-29
Literature Review..
30-31
Sectorial Review
32-42
Data Collection.
43-46
Review on Selected ..
47- 72
Suggestion
73
10
Conclusion.
74
4
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
EXECUTIVE SUMMARY
We have started our Grand Project with Introduction which is divided into
Four Phase Vibrant Gujarat Global Investors Summit 2003, 2005,
2007, 2009. It covers the part of 2003 to today and gives the idea that what are
the major corporate initiatives taken by the Gujarat Government like in Summit
2003, These were includes IT, Biotech, Agro, Energy, Gas, Petroleum, Nonconventional Energy, Port & port-Led industries, Financial Services, Textiles and
Apparels, Gems & Jewellery, Tourism etc.
The main aim behind preparing this Grand Project is to find about
Government efforts for the purpose of industrial development and knowing what
are the major steps taken by the government.
Further proceed with methodology which covers secondary information
from news papers, websites, books, and magazines etc.
Initially in introduction stage we precede further by knowing what are the
major steps taken by the government.
Reporting ahead we have done unstructured interview for analysis
At the end we conclude research paper briefly according to our perception.
5
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
INTRODUCTION
Gujarat located near mid-west coast of the Indian subcontinent is a state that
shows Indias growth. The state has constantly shown the higher growth rates than
the national growth average. In fact a Gujarat is growing faster than some of the
Asian economics. The state has steadily shown an average growth rate of more
than 10% for the last five years. After given such a growth record, it has emerged
as one of the most prosperous & promising state of India. From the last few years
the state is even competing with the developed countries too.
As one of the most industrialized state in India Gujarat has been playing an
increasingly critical role in making India shine. Beside labour harmony,
Infrastructure development, social reforms, investor friendly climate, transparent
policies, and prudent fiscal management, which have contributed to the growth of
the state economy, it is the entrepreneurial nature of the people of the state which
has gone a long way in making the Gujarat story a successful one.
The state has 13.2% share in the industrial production of the country; it has
a share of 20% in India's Export basket. Today the state has well-diversified
industrial base, from agro to petrochemicals based industries. The state is proud of
having one of the worlds largest petroleum refineries at Jamnagar. Even now
Gujarat is the leader in textiles, engineering, automobiles, chemicals,
petrochemicals, pharmaceuticals & drugs, dairy, cement, ceramics, gems &
jewellery etc.
Gujarat is ahead in implementing reforms, Gujarat also leads the way in
privatization. Disinvestment is a way of life, with more than a dozen PSUs
Privatized or Restructured. Gujarat has demonstrated a highest industrial growth
rate in India 12.5% (2002-07). The state is home to more than 800 large
industries & 3, 20,000 micro, small & medium industries. The state has an
infrastructure favorable to various industries like Petroleum, Chemicals,
Pharmaceuticals, Food Processing, Salt Manufacturing & Diamond Processing.
The state has comprehensive presence in many sectors at all the stages of
manufacturing/production etc.
6
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
According to Reserve Bank of India (August 2008) Gujarat ranks 1st with a
proposed investment of USD 152 billion in 100 projects accountings for approx
22% of total investment in India. Deutsche Bank Research shows that Gujarat
ranks 1st in Regional Scoring among 27 states in India and offers the most
favorable outlook for the growth of demand for infrastructure projects.
Key Points for selecting Gujarat as an Investment Region by the Investors. Simple
question is
WHY GUJARAT?
Gujarat has very large Road network, Rail network, Gas grind etc
7
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
8
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
800 Large Industries and over 3, 20,000 Micro Small and Medium Industries
Worlds largest producer of processed Diamonds and Wall Clocks
Worlds largest gas-based single location Sponge Iron Plant
9
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
10
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
11
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
also made credible changes in economic policies. Investment policies have been
applied. Gujarat may become attractive and industrial friend's region and such
steps re being taken. To attract investors to Gujarat, our chief minister has given
the concept of 'Vibrant Gujarat'. Our aim is that by this programmed, capital
investment in Gujarat must increase. Gujarat has held 'Global Investors Summit' in
2003, 2005 and 2007 and it will be in 2009 again, to attract the investors. Due to
Summit 2003, we got capital investment of 66,000 crores, in 2005, it was 1,60,160
crores and in "Summit January 2007" we got 4,60,000/- crores capital investment.
Our Chief Minister has decided to make 'Golden Gujarat' from 'Global Gujarat'. In
"Summit 2007", various 12 countries' investors are willing for the investments in
Gujarat.
In this Summit, Special Economic Zone (SEZ) was discussed and its result will be
great for us. Because of Global capital investment in Gujarat, about 12,76,775 jobs
will be available and our youth will get its maximum benefit.
In "Global Investors Summit 2007" 349 new agreements have been made. Gujarat
will get the investment of 4,60,070 crores. Here is a list of investment that will be
invested in Gujarat.
Reliance - Rs. 67,000 crores Torento Group - Rs. 09,000 crores
O.N.G.C. - Rs. 30,000 crores Cadila Group - Rs. 05,300 crores
Dishmen Pharma - Rs. 28,500 crores Birla Group - Rs. 03,700 crores
Adani Group - Rs. 25,000 crores B.P.c.L. - Rs. 02,000 crores
Essar - Rs. 10,500 crores ICICI Bank - Rs. 01,000 crores
12
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Moreover, Welspan Gujarat, Sanghi Industries, Cadila Pharma have declare for the
big capital investment in Gujarat. Gujarat will be the engine of development, if all
the above thing will be in time.
SEZ's efforts to make Gujarat competitive
For the rapid economic development a bill has been passed in the Parliament in
2006. After the declaration of this issue, new hopes of rapid growth have raised.
About 33 SEZ have been developing under the new SEZ policy, and recently new
Special Economic Zones have been granted to Gujarat.
The SEZ founded by Adani Group in Mundra will be the biggest in area. Whereas
Reliance's
SEZ in Jamnagar will stand at second position, and Sterling Biotech SEZ in
Baroda will be the third biggest in area. Other Social Economic Zones are G.I.D.C.
(Dahej), Essar-Jamnagar, AdaniDhobera. Government will give special relief such
as relaxation in taxes, benefits of infrastructure facilities. Obstacles will be
decreased and priority to problem solution is given 4Economic Zones are set-up in
Particular areas by the Government and has opened the doors of progress. The
Government has got 800 proposals to set-up SEZ from various states, and out of
them 500 social Economic Zones are sanctioned Gujarat has got 33 special
Economic zones and most of them are under construction It was decided in
"Global Investors summit 2007" that most of the capital investment will be in SEZ
and so is expected Gujarat has taken maximum benefit of this Programmed. It is
true that due to SEZ real business creation at wealth infrastructures facilities and a
number of jobs will be available.
BY SEZ Ports, highways, correspondence, information technology, Banking,
textile, garments and jewelry, chemical industries will make rapid growth. Obstacle
13
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
and hurdles of industries will relay be solved and Government has tried to be a
"Industries" Friend region our impression is very good on others because we have
tried a wt to invest in Gujarat, and industrialists believe that Gujarat is the best
state for capital investment. Now they don't Say ''why Gujarat" but they Say "Why
not Gujarat" All great industrialists have preferred Gujarat for investment and
Gujarat is no. 1 in attracting investors. They will provide quality Production at a
low rate and compete the international companies.
In Social Economic Zones, big as well as small industries will develop and Gujarat
will be the Global -Infrastructure in the World and Gujarat's map at industrial
development will be changed. Gujarat has followed the modal at "Investors
Summit" to attract the capital investors and we have amazed great industrialists
and businesspersons by mar efforts. Investors will look into government policy and
present condition of Gujarat. It is a matter at pride for Gujarat that great companies
like TATA, Ambani group and Shashi Ruia will invest together and it will be a
intense competition. Gujarat is rich in source at oil and Gas. Kairn Energy,
Petronet, L.N.G., Nicco, sail, H.P.C.L have been attracted and managed for
production and expansion so Gujarat has become petro-capital of the country.
Gujarat has directed the country in many ways. It's highest industrial growth
rate is up to 15% Gujarat's contribution in export is 14%, 83 Industrial fields and
182 industrial residential have been set-up. Gujarat is no. 1 in telephone density in
the country. So, we can say that by SEZ better facilities will be afforded and
Gujarat will achieve sparkling achievement in, economic development.
Our chief minister wishes to make Gujarat no. 1 developed state of the country. His
dream is that people of Gujarat should live with pride and dignity and not in
helpless condition. For this industrial as well as agricultural development is also
necessary. Drinking water as well as irrigation and electricity will be provided for
14
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
the agricultural development. The Government has tried a lot for better roads and
better planning has been done. For the best infrastructures development, Gujarat
has formed 'Infrastructural' Development Board' for the first time in India. Gujarat
is the first state who has formed disaster management committee. It's aim is formed
to help people at the time of natural calamities. Our disaster management
committee helped people a lot in Kutch earthquake and reestablishment done by us
is really praise worthy. Even foreign representatives are astonished at how we
brought out our economy from effects of earthquake. The work done at the time of
flood in Surat is also praising. In the same way, the planning made to attract new
capital investment will surely bring outsiders to invest in Gujarat and there is no
doubt in it. By these capital investments and benefits declared by SEZ will change
the face of Gujarat-and its industry.
RESEARCHDESIGN
The research design under take the process of how data is been collected &
how it has been classified. It has been classified on the base of Primary Objective
& Secondary Objective:
OBJECTIVE
Primary Objective:
Primary Objective is to have an observation of impact on selected sectors
due to Vibrant Gujarat it undertake the whole process of Vibrant Gujarat &
Its impact that took place in selected sector in vibrant Gujarat.
SOURCE
It has been collected on the base of:
15
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Secondary Objective:
Secondary Objective is to measure the growth that took place & the
infrastructure change that have been occurred in Gujarat due to Vibrant
Gujarat.
SOURCE
It is to be collected on the base of:
Internet,
Magazines &
Journals etc.
The research on Vibrant Gujarat on the base of selected sector from the different
sector that Vibrant Gujarat undertakes it the selected sectors are:
16
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
HISTORY
Vibrant Gujarat Global Investors Summit or VGGIS is a biennial summit
organized by Gujarat government to attract foreign investment for development of
Gujarat. Based on the themeGujarat Going Global and aimed at bringing together
business leaders, investors, corporations, thought leaders, policy and opinion
makers; the summit served as a perfect platform to understand and explore
business opportunities with the State of Gujarat. First VGGSIS started in 2003 and
4th VGGIS completed during 12-13 January, 2009
17
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
18
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
19
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Garment & Textiles and Gems & Jewellery at Surat. There were also exhibitions
held in above sectors at respective cities like Ahmedabad and Surat to provide a
platform for the products and services of above sectors. There were lots of one to
one discussion took place between government and investors for the investment in
various sectors. 176 project proposals were compiled and were then scrutinized for
their viability. Internationally reputed credit rating agencies like CRISIL and
CARE lend their support as the financial advisors to these projects. Leading private
and public sector banks of India like ICICI, IDBI, State Bank of India, Bank of
Baroda, State Bank of Saurashtra, Corporation Bank, IDFC and NABARD have
extended their support for financing these projects. CRISIL also worked with index
in structuring these projects.
20
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
On the first day of this program, the focus sectors were Information
Technology, Biotechnology, Agro, Energy, Gas, Petroleum and more importantly
Non-conventional Sources of Energy. Seminars and meetings were held in three
different halls at the Science City. Potential investors and industrialists had one-toone meetings with senior officials of the state government and ministers of the
cabinet.
21
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
The concluding day maintained the same momentum and enthusiasm as that
of the first day with MOUs being signed by Industry. Several new MOUs were
signed in the focus sectors of the dayAgriculture, Engineering, Tourism, Urban
Development, Chemicals and Pharmaceuticals, Port & Port Led development,
Textiles, Gems & Jewellery. By the time the Summit concluded on the second day,
investments worth INR 1060 Billion in the form of MOUs were signed with 226
units. The concluding ceremony was graced by the Union Minister for Commerce
& Industry Shri Kamal Nath, Besides these, four industrial majorsTorrent, Essar,
Welspun and Adani, have Ledged investments of INR 120 Billion in gas-based or
lignite-based power projects, assuring self-sufficiency to the state for future in the
most important sector - power.
Sector
No. of MOUs
Investment in Rs.
Cr.
34
1045
Energy - Power
17
38003
25
13287
22
348
22
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
14
7352
Urban Development
13
9100
13
3645
10
305
428
10
35
15585
23
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
24
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Power, Oil & Gas; Chemicals, Petrochemicals & Pharmaceuticals; SEZ & PortLed Development and Urban Development. The Gujarat government is hopeful of
garnering investment of Rs.1,50,000 crore under diverse sector through the
imminent Vibrant Gujarat 2007 programme. The sectors includes energy,
chemicals, petrochemicals and pharmaceuticals, agro and food processing, textiles
and apparel, automobile and ceramic engineering, SEZ and port-led development,
gems and jewellery, medical tourism, biotechnology, information technology,
urban development and tourism.
The government has invited Rs.32,000 crore investments for the power
sector, to be spread over nine new projects. Generation capacity in the state is
about 9,288 MW divided among 20 power stations. Of this, 10 plants are owned by
the Gujarat State Electricity Corporation, seven are owned by private players,
while Central government utilities have shares in one unit. Generation capacity is
targeted to be raised to 16,000 MW by 2012.
Some of the mega projects planned include a 1,000 MW LNG-based plant at
Vansi Borsi in Surat district at an investment of Rs.3,000 crore, a 1,000 MW coalbased plant near Veera/Sangat at Kandla at Rs.4,500 crore, a 1,000 MW coal-based
plant near Pipavav at Rs.4,500 crore and another 1,000 MW coal-based plant at
Simar in Junagadh district for Rs.4,500 crore.
The Summit 2007 has received tremendous response in respect of signing
of MoU and project announcements. In all, 363 MoUs were signed including
project announcement having total investment of Rs.4,61.835 crore. On completion
of these projects, there will be employment generation for 13.26 laces people.
25
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
The State Government has already introduced new software for monitoring
all these MoUs, in order to provide assistance for expeditious implementation of
projects.
In order to promote the Summit 2007, the State Government sent six
delegations led by industry leaders to different countries over the globe. The
delegations met with good success. Nearly 100 companies representatives from
different countries including industry delegations from six countries participated in
Summit 2007.
Vibrant Gujarat Global Investors' Summit 2009 had resounding success this
year too as it had been in the past. During the course of two days, 8662 MoUs
worth US$ 243 billion (over Rs. 12,000 Billion) are signed. The summit witnessed
participation of delegates from 45 countries, amounting to over 600 foreign
delegates. The whos who of the Indian industry were present, including Mr. Ratan
Tata, Chairman, Tata Group, Mr. KV Kamath, Chairman ICICI and President CII,
Mr. Mukesh Ambani, Chairman, Reliance Industries, Mr. Kumar Mangalam Birla,
Chairman, Birla Group, Mr. Shashi Ruia, Chairman, Essar Group, Mr, Anil
Ambani, Chairman, ADAG Group, Mr. Sunil Mittal, Chairman, Bharti Enterprise
among several other dignitaries. Several political dignitaries from various countries
such as Japan, UK, China, Russia, Canada, Israel, Poland, Korea, UAE, Malawi,
Indonesia, Oman, Kenya, Italy, Singapore, Trinidad & Tobago, Vietnam, Uganda,
Zimbabwe and Maldives had participated.
The exhibition was organized in a grand way, spread over an area of 19,200
sq. mts. There were 232 stalls, quite impressive and informative, having
participation of eminent companies of India. 16 international countries participated
in the exhibition from countries such as Japan, Korea, UK, Kenya, Arab League,
Russia, Netherlands, Trinidad & Tobago, Czech Republic, El Salvador and
Uganda.
27
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Earlier Summits were organized in the year 2003, 2005 and 2007. The 2003
Global Investors' Summit was held coinciding with the glorious Navratri Festival
where a total of 76 MOUs worth USD 14 billion were signed. The 2005 Summit
saw signing of 226 MOUs garnering an investment of USD 20 billion. The year
2007 Summit, resulted in signing of 675 MOUs worth USD 152 billion. In the year
2009, the initiative that began six years ago, was intensified and the state propelled
in to the next stage of the development process, focused and intensive growth in
the socio-economic index.
Investment Commitment
Sector
Telecom
Semiconductor
IT/ITeS SEZ
IT Services
Total
MoUs
Investments Employment
(In INR Cr.)
4
22600
18800
3
4
8
19
20000
1751.27
1655.69
46,007
15200
82500
23992
1,40,492
28
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
In his speech on the opening day, Tata group Chairman Ratan Tata said,
States usually take 90-180 days to give clearances for land and other issues. When
we were in the process of moving our Nano project to Gujarat, the state
government gave us the clearances in just three days. It has never happened
before.
The leading lights of Indian industry Mukesh Ambani, Kumar Mangalam
Birla, Shashi Ruia, Anand Mahindra, Tulsi Tanti etc. who were present seem to
agree, going by the fact that each of them committed mega investments in the state.
MONEY SPINNERS
Some of the major sectors that attracted investment commitments
Infrastructure
Rs 2.09 lakh crore
Power
Rs 2.03 lakh crore
Urban Development
Rs 1.02 lakh crore
Ports & shipbuilding
Rs 96,000 crore
SEZs
Rs 77,248 crore
Oil & gas
Rs 75,358 crore
Banking & SME
Rs 70,000 crore
Information technology
Rs 46,007 crore
Auto & Engg
Rs 40,000 crore
Agri & food
Rs 35,276 crore
Vibrant Gujarat was also a personal victory of sorts for Modi. For the
summit saw the world opening up to the state, this had slid in the worlds view
after the 2002 riots. While Japan was a partner to the two-day Summit, the event
saw participation from over 40 countries, including Germany, Spain, Italy, the US,
the UK, Canada, France, Kenya, Uganda and Sri Lanka.
29
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
LITERATURE REVIEW
According to Narendra Modi, Investor Summits has been hosted since
2003 it helps to monitoring MoUs due to which Gujarat stay highest in Country for
Project Implemented. Key behind development is the Mass Movement where
every person feels their importance & contributes to development & progress of
30
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
state. Gujarat the only state that has Uninterrupted power supply in Rural area. By
2010 it will be Strategic Infrastructure Hub & set the highest standard in economic
& social development. Vision to make Gujarat emerge as a leader not only in
Indian subcontinent, but also in Asia. (The Milk consumed in Singapore is supplied
by Gujarat, Tomatoes eaten in Afghanistan are produced in Gujarat, Potatoes
Canadians gorge on are farmed in Gujarat)
(Annual Gujarat Review08. The Financial Express, January 2009)
These companies have been benefited due to Vibrant Gujarat great changes such as
growth, development and expansion of firm international exposure etc been they
got due to Vibrant Gujarat some of their review as follows:
pesticides, electric motors, submersible pumps, plastic pipes etc. all are available at
one-stop. Right now Champion Agro World has opened 13 centers in different
villages of Gujarat and by March this should reach to 50 and its target for Gujarat
is 400 Agro Center. There employee has to meet farmer who are member of Agro
Centre. Each center covers 200 farmers and it has target to make it to 1000. The
company is committed to give a modern professional look to agriculture by solving
the problems of the farmers in a scientific manner.
Indias First Ever Chain of Agro Centers CHAMPION AGRO WORLD
(Annual Gujarat Review08. The Financial Express, January 2009)
SECTORIAL REVIEW
BIOTECHNOLOGY
Global biotechnology: The sunrise industry
32
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
INFORMATION TECHNOLOGY
The Information and Communication Technology (ICT) sector in Gujarat
is projected to see investments of up to USD 3.7 billion by 2010, Export from a
state saw a growth rate of 107.3% to reach USD 134 million in FY 2006-07,
Exports for the financial year 2007-08 (till October, 2007) amounted to USD 86.12
million, After implementation of e-governance policies and projects, Gujarat was
33
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
adjudged the best e- governance policies and projects, Gujarat was adjudged the
Best e-Governed State in the country by the Computer Society of India (CSI),
Gujarat has one of the highest tele-density in the country.
15 IT/ ITeS/ Electronics Special Economic Zones to be set up in the State by
large corporate players such as TATA, DLF, ADANI Group, Raheja group, etc.,
Gujarat International Finance Tech City (GIFT), a 500 acre mega project for
global financial services industry to come up at Gandhinagar.
Advantage to Gujarat industry friendly IT Policy, Flexible labour laws,
one of the lowest starts up and operational costs in India, 24/7 uninterrupted power
supply, State-of-the-art infrastructure, connected with the world.
Industrial presence across in Gujarat TCS, einfochips, L&T InfoTech,
Echelon BPO, Mphasis, Microsoft etc. Government Initiatives such as
Introduction of the IT Policy 2006-11 with a special focus on inviting new players
to the state, Promotion of IT Parks & SEZs with comprehensive support and
assistance from the Government, Set up and Maintenance of Gujarat state Wide
Area Network (GSWAN), Sachivalaya Integrated Communication Network
(SICN), Server Farm, Integrated Workflow & Document Management System
(IWDMS), etc.
Opportunities Ahead IT/ITeS/ IT hardware SEZs/ Parks, Information
Technology enabled Services (ITeS), IT hardware and semi conductors.
POWER
Gujarat has been ranked second in overall performance of power
sector as per the Power Sector Rating Report (2005) of Crisil ICRA
submitted to the Ministry of Power Gujarat rank third in total generation of
installed capacity of power among all states in India. The installed capacity of
34
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
5996
62.28
Gas Power
2294
23.83
Hydro Power
4
779
8.09
Atomic Power
1
559
5.80
Dependable power supply key to industrial development
Present power generation capacity is 9,628 MW; plans afoot to raise it to
25,000 MW by 2012
Per capita power consumption is 1,354 units against the national average of
665 units
Rich availability of natural gas (34 MMCD) and lignite (1,072 MMT) 24-hour
3-phase uninterrupted power supply.
9,561 MW
14,031 MW
18,708 MW
11,164 MW
35
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
20,725 MW
18478 MW
8,200 MW
7,400 MW
(I)
5,680 MW
(J)
42,005 MW
(K)
21280 MW
prospective customers.
Speaking on the occasion, Mr Gautam Adani, Chairman, Adani Group, said
Mundra has become an attractive destination for power generation. The power
generation capacity at Mundra will exceed 12,000 MW, from present capacity of
8,600 MW in the near future, he added.
Mundra SEZ, owned by the Adani group company Mundra Port and Special
Economic Zone Ltd, is the largest multi-product and first port-based SEZ in the
country. It has multi-model connectivity including road, private rail line, sea
port, air port and cross-country pipelines.
Utility infrastructure such as power generation, transmission and distribution,
desalination plant, central effluent treatment plant, and social infrastructure is
likely to generate employment for about four lakh people and attract investment
of more than $50 billion, according to a company statement.
37
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
constitutes 85% of the total production in India, Gujarat accounts 72% of worlds
share of processed diamonds & 80% of total diamonds processed in India, Almost
8 out of 10 diamonds in the world today are processed in Gujarat, There are 9
Hallmarking centers in Gujarat.
Gujarats strength across the industrial value chain Mining, Processing,
Fabrication, Consumption of Diamond, Gold, Platinum, Silver & others
Hub of Academic Research Facilities such as Indian Diamond Institute
(Surat), National Institute of Fashion Technology (NIFT), Gandhinagar, National
Institute of Design (NID), Ahmedabad & Gujarat has opportunities ahead for this
sector Diamond Processing, Jewellery Manufacturing, Jewellery Retailing.
39
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
HEALTH CARE
Healthcare landscape in Gujarat is evolving rapidly in term of well
equipped healthcare facilities, medical technology and health insurance schemes.
Gujarat offers holistic medical services and cost effective treatment. The state has
23 district hospital, 25 sub district hospital and 20 private specialty hospitals. There
are 42,285 & 17,551 registered Doctors & Nurses respectively.
Several major public private partnership projects in this sector include
Institute of kidney Diseases and Research Centre (IKDRC), U.N. Mehta Institute
of cardiology & Research Centre, Gujarat Cancer Research Institute (GCRI),
Hyderabad Based Emergency Medical Research Institute (EMRI), Public Health
Institute Gandhinagar.
Gujarat is the home to reputed medical and dental colleges. Gujarat Ayurved
University is the only statutory university of its kind both at national and
international level exclusively devoted to Ayurvedic studies and research.
Government Initiatives Chiranjeevi yojna A scheme of ppp to provide
delivery care to the poor in rural area of the state, Hospital management and
Information System, Gujarat Public Health Act, NABH Accreditation First State
in Asia to bring hospitals under National Accreditation Board of hospitals and
healthcare providers (NABH)
Key Healthcare service providers in Gujarat are Civil Hospital, Sterling Addlife
India Ltd., Apollo Hospital, Mayflower Hospital etc. some of the Medical
Education Centre Institute of kidney Diseases and Research Centre (IKDRC),
Gujarat Cancer Research Institute (GCRI), U.N. Mehta Institute of cardiology &
Research Centre, B. J. Medical College Ahmedabad, Gujarat Ayurvedic University
Jamnagar etc. Opportunities ahead of Integrated Medicity, Healthcare
Outsourcing (BPO), Clinical trials & Research etc.
40
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
41
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
42
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
PHARMACEUTICALS
Gujarat is known as the hub of Indian Pharmaceutical Industry with around
3,245 manufacturing licensees. The state manufactures and exports different
dosage forms including tablets, capsules, dry syrup, external preparations,
cytotoxic drugs, sex hormone drugs, and vaccines, small and large volume
parental, APIs, biopharma products and many others.
Gujarat State is the manufacturer of the maximum number of dosages with
in the country. Contributes 42% of Indias pharmaceutical turnover and 22% of
Indias Pharmaceutical exports. It employs around 52,000 people. Pharmaceutical
players in Gujarat Zydus Cadila, Torrent Pharmaceuticals, Cadila Pharmaceuticals,
Intas Pharma, Sun Pharma, Alembic, Dishman Pharmaceuticals, & Hester
Pharmaceuticals.
Initiatives taken by Government for the industry, Gujarat is the only state in the
country to issue sales license through I.T. application with the help of National
Informatics centre, State has allowed setting up of SEZs dedicated to
pharmaceutical sector to boost investments, Establishment of National Institute for
Pharmaceutical Education and Research for human resource development,
Incentives to encourage research and development in the sector in terms of various
tax benefits.
43
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
DATA COLLECTION
Data collection of the Primary Objective been done on the base of the
informal interview of the Chamber of Commerce, Media, Participants of Vibrant
Gujarat.
Data collection source was Unstructured Interview
Media
TIMES OF INDIA, AHMEDABAD
Mr. Iyer Secretary of Chief Editor,
Vibrant Gujarat is an event which helps the investor to overcome their big
project very easily into the investment destination Gujarat.
According to Times of India vibrant Gujarat is not 100 percent success it
success is about 60% because as fast the MoUs are signing they are not been
implemented so as a part from government of Gujarat has to work on it and have
decrease its frequency. Government should monitor on them. It is good point of
view from the investor that they will easily get the platform to overcome their
projects in Gujarat.
ECONOMIC TIMES, AHMEDABAD
Mr. Himansu Darji Principal Correspondent,
Vibrant Gujarat is a facilitator for the industries to come up from initial till
the global.
According to Economic Times iNDEXTb (Industrial Extension Bureau) A
Government of Gujarat Organization plays a role of facilitator to industry which
has been participated in Vibrant Gujarat.
Former in 2003, 2005, & 2007 the Industry were allowed to do MoUs
directly but this time in January 2009 before they sign the MoUs they checked the
feasibility that they are eligible to sign the MoUs or not first they check and then
they allow them to sign the MoUs.
Online they are starting inquiry for starting business in Gujarat. And too they
have started Vibrant Review meeting every month for participants of Vibrant
Gujarat.
44
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
MoUs benefits are solving of Land Problem, Tax benefit etc. Over all
ABOVE AVERAGE work done by Government of Gujarat as per ET.
45
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
This even is now not only well known in India but its well known in the
world. Participants of the Vibrant Gujarat get easy availability of land, some tax
benefit and Industry to have been also as monitored by the Govt. they special focus
not only on industry but on that sector. So it is beneficial to both Firm & Sector.
46
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
They are in to the business of the Food & Agri Business and their core
business is Oil Milling / Extraction & Refining etc. are their core business. They
were benefitted from Vibrant Gujarat in purchasing the machinery for the business,
financial problem & too land for storing goods etc. they got easily.
47
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
49
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
(US$ 5.8 Bn) in the port sector, out of which MoUs worth Rs. 13,400 crore
(US$ 3.3 Bn) were actually signed during the Summit.
2) Several companies have been shortlisted for formation of Special Purpose
Vehicles (SPV) to undertake dredging with an investment of US$ 75 million.
3) Expansion of captive jetties and installation of Single Buoy Mooring (SBM)
facilities.
4) Proposals received for establishment of captive jetties for cement plants amount
to Rs. 500 crore ( US$110 Mn)
5) Installation of a Vessel Traffic Monitoring System in Gulf of Cambay at an
estimated cost of Rs.130 crore (USD 29 Mn) by ATASH- Norwegian firm joint
venture.
6) 100% FDI allowed by central government in shipbuilding industry.
7) Introduction of tonnage tax for shipping companies for the growth of shipping
Industry
8) Plan for the establishment of two international ship building yard on the
east and west coast through public and private partnership
1.
51
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Classes of MSME
Enterprises Investment in Plant &
Machinery (Manufacturing)
Investment in
Equipment (Services)
Micro
Small
Medium
Rs. 5 Cr Rs. 10 Cr
Rs. 2 Cr Rs. 5 Cr
52
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
industries. An entrepreneur is required to get approval for such project from GOI
under IDR Act. GOI has liberalized the procedure of granting approval. Since
introduction of new procedure in July 1991, Gujarat has received 7319 Industrial
Approvals comprising of 6431 Industrial Entrepreneurs Memorandum (IEM)
Acknowledgements. Letter of Permission (LOP) for 100% Export Oriented Units
(EOUs) and Letter of Intent (LOI). The total investment of all these proposals
works out to Rs 2,19,688 crore. The State accounts for 16% in total projected
investment in the country during post liberalization period.
Gujarat has introduced a system for Monitoring of Industrial Approvals in
order to know status of all these Approvals and provide assistance for expeditious
implementation of the project. As on January 2004, there were 3791 projects with
investment of Rs. 93927 crore have been implemented. In addition, 1448 projects
with investment of Rs. 52839 crore are under implementation. These comprise of
890 projects having total investment of Rs. 805 in the investment range upto Rs. 5
crore, 497 projects with investment of Rs. 11426 crore in the investment range of
Rs. 5 crore to Rs. 100 crore and 59 projects Rs. 24176 crore each having
investment of above Rs. 100 crore.
The main strength of Gujarat is MSME. There are at present over 320,000
MSMEs in Gujarat.
MSMEs have played a pivotal role in industrial dispersal and overall industrial
development of the State
MSMEs have proved to be a major contributor to the economy of the
state, especially in terms of value addition, employment generation and
entrepreneurship development
53
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
The total investments by the MSME units in Gujarat was at INR 74,460
million (US$1,816.09 Million) while production was estimated at INR
102,230 million (US$ 2,493.41 Million) during 1999-2000.
There has been an average investment of INR 5,000 million (US$121.95
Million) every year in MSME sector between 1996-2006.
The functional MSME units in the state have been responsible for generation of
a total 700000 jobs in the decade (1996-2006).
Total no. of MSMEs registration (up to 2007) in rural, urban & metropolitan
areas is 50,529, 72,506 & 4,483 respectively.
54
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Surat ranks second with 15% of the total MSME units registered in the state
followed by Rajkot with 10% of the total requested MSME units.
Ahmedabad, Surat and Rajkot together constitute approximately 50% of the
total registered MSMEs in the state.
Central Gujarat constitutes 39.65% of the total MSMEs followed by Saurashtra
(26%), South Gujarat (24.35), North Gujarat (8%) & Kutch (2%) region.
These clusters together constitute 37.6% of all MSME units, 43.5%
of
In %
21.40%
7.60%
Metal Products
Food Products
0.80%
5.30%
5.00%
56
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Wood Products
4.30%
3.80%
3.60%
2.80%
2.60%
2.80%
0.90%
Leather Products
0.80%
3.60%
Others
31.90%
Technology up gradation
57
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
R&D Support
Support to R&D institution as well as sponsorship to small projects up to Rs 5
lakhs for R&D
Quality certification
Support for BIS certification, ISO 9000, ISO 14000, ISO 18000, HACCP,
WHO GMP others
Subsidy @ 50% subject to maximum INR 0.2 million
Marketing support
Assistance for participation in international trade fairs up to maximum Rs. 2
lakhs
Assistance to industries association @ 50% of total rent subject to maximum Rs. 5
lakhs
3: TEXTILE
Gujarat the Textile Hub of India
Cotton: Largest producer (35 %) and exporter (60%).
Denim Production: 3rd largest in the World and largest in India (65-70%)
Multihued embroidery machines: Largest number in the world (over 40,000)
installed in last 3 years (Surat)
58
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Area
Textile Clusters
Umargaon
Jetpur
Textile handicrafts
59
Area
(Hectares)
11,364.24
11,000
10,621.09
5,603
12,195.37
116
60
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Other benefits
Common incentives
Indirect tax incentives
Nil customs duty
Nil excise duty
Exemption from central sales tax
Exemption from service tax
Exemption
SEZ scheme has been introduced to provide hassle free environment and
62
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Investment Trends
As on May 2007, there are 348 projects under implementation in textiles, worth
an investment of US$ 1.24 billion and an employment requirement of
37,121.
Vibrant Gujarat Global Investors Summit - a State Government initiative - is
conducted biennially, to promote investments in the State.
As per the three summits held in the past, (2003, 2005, 2007), a total of 43
MoUs were signed with the total investment amounting to US$ 36.7 billion.
63
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
switchgear,
transformer
64
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
regions
would
be
developed
in
the
first phase
(2008-12).
29.03
23.58
7.15
10.1
12.72
SEZ
Essar Hazira SEZ
Developer
Location
Essar
Hazira
267
Engineering
230
Industrial
machinery
& ancillary
Gallops
SEZ
Suzlon SEZ
Suzlon
Infrastructure Ltd.
Vaghodia,
Vadodara
101
Engineering
Dishman SEZ
Dishman
Infrastructure Ltd.
Ahmedabad
145
Engineering
Rampara&
Lunsapur, Amreli
156
Engineering
Welspun Anjar
SEZ
Anjar, Kutchh
121
Engineering
Welspun
65
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Bhimasar, Kutch
164.80
Flat Steel
PSL SEZ
Ramparal
Pipavav,
Amreli
105.67
Alternative
Energy
and
Ancillaries
PSL Ltd.
Good
Governance
Development
of small medium
enterprises
Cluster
development
66
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
SEZs to
facilitate
investment
including:
1) Multi-product SEZ at Kandla, Mundra, Surat, Jamnagar,
Dahej, Dholera
2) Sector-specific SEZs in textile and apparels, pharma,
engineering, electronics & IT, etc.
Gujarat is the first state in India to introduce labour flexibility
in SEZs
67
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Connectivity:
As a part of NHDP Golden Quadrilateral and East-West Corridors, National
Highway, NH 8 and NH-14 are present in the area
Mehsana is just 130km from DMIC and 200km from Ahmedabad
Gandhidham- Palanpur Broad Gauge rail line passes through the region. Rail
network connects Palanpur with DMIC, which is just 160 km.
Investment Profile:
68
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Santalpur is selected as a Investment Area which is located within 50km from the
dedicated freight corridor, the area is present in the Palanpur and Mehsana station
Strategically located along the DFC, the area is well connected with Kandla,
Mundra and Pipavav Ports.
The delineated region is a thriving belt for rich agricultural base with an
availability of huge land parcels.
69
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
32%
Agricultural Products
68%
Indian Scenario
The agriculture industry in India contributes nearly 35% to countrys GDP
and employs around 65% of the population. India is the Worlds second largest
producer of the food next to china India is one of the Largest producer of cereals
and milk, cotton, & fish etc. The country is second largest producer of rice, wheat,
sugar, fruits and vegetables. Food grain output grew by 4.6% with total production
of 227.32 MT in 2007-08. India consumes about US$ 200 billion worth of food
products, 53% of which is processed food.
Crops
Sugarcane
Cotton**
Oilseeds*
Food Grains
70
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Major Agriculture crops: bajra, groundnut, cotton, rice, maize, wheat, mustard,
sesame, pigeon pea, green gram, gram and sugarcane. Major Horticulture crops:
mango, banana, sapota, lime, guava, tomato, potato, onion, cumin, garlic isabgul
and fennel.
Growth Initiatives
Initiatives to increase agriculture productivity and promote innovative technology
through farming campaign
Extension Programs:
Krushi Mahotsav (mass awareness campaign)
Soil Analysis
Balance use of inputs
Farm gate value addition
Cropping & intercropping advice
Market information
Scientific pest management
Conventional training & visit programme.
Kisan call centres (KCC)
E gram networking
Krushi Vigyan Kendra (KVKs) support
Mobile alert system to educate farmers
Innovative Technology Interventions:
Soil Health Card (SHC)
Awareness is created on the following technological innovations:
71
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
Initiatives
SUGGESTION
According to us, for sustainable growth, the following suggestions should be kept
in mind. Some important and essential suggestions.
1
The capital must be invested at proper time as declared by the industries and
obstacles problems must be solved. The Government should form laws and
make changes in Government policy.
2 The Government should plan earlier for the problems of urbanization and
transformation and government should form a managing organization for it.
3 Unhealthy competitions must not be done by the big industries, and small units
must not be affected.
4 Big units (industries) must be suggested about poverty, unemployment removal,
and stability of rate. They must be compelled to do so if necessary.
73
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
5 The industries must be encouraged and forced for the environment preservation
and balance in ecology.
6
7 Big units should be encouraged to contribute for the "Progress of human being".
8 The Social Economic Zone should be set-up on uncultivated areas, and not in
fertile land, which is used for agriculture.
9 Politics must not interfere in the industrial development.
CONCLUSION
From the above discussion, we can say that the policy adopted by the central
Government for the rapid industrial growth and the policy adopted by Gujarat for
SEZ and capital investment is really praise worthy. Gujarat will be the no.l state in
economic progress, if we shall follow the policies. Gujarat will be a model state
and guide other states rightly. We should consider the problems that come in way
of development and accept the challenges to make successful the concept of
"Vibrant Gujarat". We should remember that the development is not possible only
by forming policies with the progress of industries; other problems must not be
raised. Society must walk with the concept of "Vibrant Gujarat" and there by we
will be able to solve the problems.
We must remember that the "The progress of deprive mass is the real
progress." With the progress of industries "Human progress rank" must go ahead
and there should be balance in industrial development of Gujarat.
74
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
We have humbly suggested the above points. If such suggestions are kept in
view, there is no doubt Gujarat will be the engine of social-economic development.
75
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS
BIBILOGRHPHY
www.vibrnatgujarat.com
www.wikipedia.com
Magazine on vibrant Gujarat
Financial express.
Eco-Development periodical.
76
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS