Sunteți pe pagina 1din 76

A

GRAND PROJECT REPORT


ON
IMPACT OF VIBRANT GUJARAT
ON DIFFERENT SECTORS

In Partial fulfillment of Post Graduate


Diploma in Management
(Full Time Programme)
Prepared by
Dhanani Prakash R.
Dhangadhariya Nikhil
(Batch 2008-2010)

Parul Institute of Management


PO Limda, TA:Waghodia
Dist: Vadodara, Gujarat-391760
(Approved by AICTE, MHRD, Govt. Of India, New Delhi)

(JANUARY 2010)
1
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

ACKNOWLEDGEMENT

The satisfaction that is generated by the successful completion of a task


would remain unfulfilled without mentioning people who have encouraged and
guided at every step toward the completion of the task.
We express our sincere thanks to Prof. N.K.KAPOOR (Director of Parul
Institute of Management, Baroda) for their valuable suggestions and help to
prepare this project.
We express our deep sense of gratitude to our project guide Prof. Sachin S
Ghadage for offering us suggestions and help in pursuing our Grand project. All of
them have been a constant source of inspiration and motivation.
We would like to express our sincere thank all the department heads, incharge and the administrative staff of the institute for giving me relevant
information and support required for our so far study.
We humbly acknowledge there is always some scope for further
improvement and to that end sincerely we invite valuable suggestions.

3
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

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?

Fastest Growing Economy


Business Friendly Policies
Strategic Location
High Quality of Life, Low Cost of Living
Quality Manpower
Abundant Natural Resources
Robust Physical, Social & Industrial Infrastructure.

Gujarat has very large Road network, Rail network, Gas grind etc

1,37,617 km of Road network


5,188 km of Railway network
2,200 km Gas grid
1 International Airport, 6 Domestic Airports, & 6 Air Strips
23 Power Plants

7
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Gujarat: THE LAND OF ENTERPRENEURS

Gujarat ranks FIRST in the country,in term of total value of Industrial


Enterpreneurial Memoranda (IEM) filed in last 17 years (1991- 2008)
Implementation of projects (realisation) is as high as 50% in Gujarat.

8
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

PRODUCT CLUSTER ACROSS GUJARAT

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

Prepared by: Dhanani Prakash R.

Worlds largest producer of Castor and Cumin


Worlds 3rd largest producer of Denim
Worlds 3rd largest grassroots Petroleum Refinery (at Jamnagar)
Indias largest producer of Cotton
Indias 1st LNG Chemical Port Terminal (at Hazira)

Gujarat is the leader in various industrial sectors, such as Chemicals,


Petrochemicals, Drugs & Pharmaceuticals, Dairy, Cement & Ceramics, Gems &
Jewellery, Textiles, & Engineering

Gujarat too has Indias leading Education Institutes

Global Business Partners

10
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Gujarat in economic development


The total area of Gujarat is 1,96,024 Square Kilometers. It has got 1600
kilometers long seashore. Gujarat has covered Unmargam from south to Disa in
industrial development, but this growth is limited only up to 20 to 25 kilometers
and this is known as 'Golden Corridor'. In this area mainly chemical, plastic and
textile, sugar, diamond industries have developed.
There are textile factories in Ahmedabad, cement factories in Kutchha, brass
parts in Jamnagar and ship breaking industries in Bhavnagar. Near Surat (Tapi) we
have plants of Reliance.
Gujarat has tried its level best to fulfill the Central Government's dream of
rapid growth; we have been trying hard for two decades. As a part of it, Gujarat has

11
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

Representative / Participants of Vibrant Gujarat.


Different chamber of commerce (like Ahmadabad, Gandhidham).
And Media Representative such as Times of India, Business Standard etc.
DATA COLLECTION METHOD
The data collection method will be Unstructured Interview.
OBJECTIVE

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:

Food & Agro Business


Port & Related Industries
Engineering & Auto
Urban Infrastructure
Textile & Apparel
Small & Medium Enterprises.

16
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

VGGIS 2003 - Signed 76 MOUs worth US $14 billion.


VGGIS 2005 - Signed MOUs for setting up projects worth INR 870 Billion
VGGIS 2007 - Signed 343 MOUs worth Rs 461835 crores. This includes Rs
14811 crores investments promised in 21 MoUs signed at an IT Summit. On the
top of the investment brackets were 28 MoUs for Special Economic Zones with an
investment tally of Rs 170,889 crores.
VGGIS 2009 - Signed 8668 MOUs having total investment of Rs.12,24,482
crores.

Vibrant Gujarat Global Investors Summit 2003


Vibrant Gujarat: Global Investors' Summit 2003 was organized during world
famous festival of Gujarat - Navratri, during which the State is at its best. This
attempt was made by the State Government to show the culture, tradition and
entertainment prevalent in Gujarat by blending them with culture, trade and
enterprise.

18
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

The Government of Gujarat held the programme of Vibrant Gujarat in the


year 2003 during which MOUs for 76 projects worth Rs.66000 crores were signed,
of which, 61 projects worth Rs.58922 crores are at an advanced stage of
implementation and 15 projects have already gone into production. During last
Navratri Festival, The Government of Gujarat promoted Tourism under its various
facets including Spiritual tourism, Heritage tourism, Medical tourism, Adventure
and Eco-tourism. Government has also organized international Kite Festival during
January 2005 alongwith "Global Investors Summit" with a view to show-case
Gujarat as most Vibrant as well as Favorable and Potential destination for making
investments. The Seminars were also conducted on different important coresubjects concerning various Government Departments. Asa result, Government
could sign 226 M.O.U.S. worth Rs. 1,06,1607- croresfor investments in different
sectors during this summit.
For attracting funds for infrastructure development, two new funds are being
set-up, (1) Gujarat Infrastructure Development Fund and (2) Gujarat Charity Fund.
Apparel Parks and Gems and Jewellery Parks at Ahmedabad and Surat are being
set-up. Bio-technology Park at Savli is under implementation. High-tech Textile
Parks are being set-up and lastly, total 6 new Special Economic Zones are being
set-up. Other 2 Zones are already operational.
Industrial Extension Bureau acted as a supported agency for the State
Government during Vibrant Gujarat, Global Investors Summit (September 28 to
October 2, 2003) organized at the two major commercial cities of the State
Ahmedabad and Surat in association with the UNIDO and FICCI & CII.
The main aim of this programme to focus on Industrial Investment, AgroProcessing, Biotech- Pharma, Natural Gas and Oil, Infrastructure, Mining,
Tourism, Apparels and Gems-Jewellery at Ahmedabad and sectoral sessions on

19
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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.

Vibrant Gujarat Global Investors Summit 2005


The two days Vibrant Gujarat: Global Investor's Summit 2005 was a one-ofits- kind event in India. It was started with the Honorable Vice President of India,
Shri Bhairon Singh Shekhawat, inaugurating the ceremony. More than 6,000
people have attended the inaugural ceremony. The top dignitaries present at the

20
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

ceremony included industry representatives, foreign multinationals, NRIs as well


as the businessmans from various sections of the society, India. Mukesh Ambani
of Reliance, Gautam Adani of the Adani Group, Shashi Ruia of Essar, Nigel Shaw
of British Gas and so on. As a reflection of faith in the state and its potential to
become a leading global destination for investment in the time to come, MOUs for
setting up projects worth INR 870 Billion were signed on the first day itself.
The summit was planned to agree with Gujarats famous Kite festival,
Uttarayan, which marks a change of season with the movement of the sun into the
northern hemisphere. Sectoral theme pavilions showcasing the strength of Gujarat
in the relevant areas were developed. Major industries, Government corporations
and Institutions participated in each sector.
This event also includes an exhibition along with seminars with the aim of
focus on the areas for investment in the state. These were includes IT, Biotech,
Agro, Energy, Gas, Petroleum, Non-conventional Energy, Port & port-Led
industries, Financial Services, Textiles and Apparels, Gems & Jewellery, Tourism
etc. The exhibition was held at the Science City which has more than 200
exhibitors from various sectors. The exhibitions attracted large number of visitors
from and within the state and outside.

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

Prepared by: Dhanani Prakash R.

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.

MOUs signed during the Vibrant Gujarat Global Investor Summit


2005
Sr.

Sector

No. of MOUs

Investment in Rs.
Cr.

Agro & Marine based


Industries

34

1045

Energy - Power

17

38003

Energy Natural Gas &


Petroleum

25

13287

Emerging Technologies (IT &


BT)

22

348

22
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Tourism and Coastal


Development

14

7352

Urban Development

13

9100

Chemicals & Pharmaceuticals

13

3645

Textiles & Apparel

10

305

Gems & Jewellery

428

10

Port s & Port led Industries

35

15585

Vibrant Gujarat Global Investors Summit 2007

23
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

The Government of Gujarat hosted the Vibrant Gujarat Global Investors'


Summit 2007 on January 12 and 13 at Ahmedabad in which Gujarat come out as a
Global Investment Destination and justified its role as the Growth Engine of Indian
Economy. In all the Summits, Gujarat was showcased as an ideal investment
destination, both for Indian and Foreign investors. The emphasis on all these
Summits was to invite investors to come to Gujarat to see and experience the
business friendly environment that prevails in the state and decide to invest here.
Detailed investment opportunities in different segments of focus sectors were
prepared and supplemented by individual project profiles to give comprehensive
information about the state.
These focus sectors included Agro & Food Processing; Engineering, Auto &
Ceramics; Biotechnology; Textiles and Apparels, Gems & Jewellery; Tourism; IT;

24
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

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 Urban Summit 15th-16th February 2007:


With lakhs of crores of investment pouring in to the State, new employment
opportunities are created attracting talented professionals, wealth is created that is
improving lifestyles and creating new demands on urban infrastructure. To
highlight the sector of urban development that has opened a lot of new avenues for
growth and investment, the state government hosted a two day Vibrant Gujarat
Urban Development Summit on 15th and 16th Feb. 2007.

The underlying objectives of the Urban Summit were:


Making cities clean, productive, inclusive, livable and self-sustaining;
Ensuring quality of life and excellent infrastructure in cities;
Developing Ahmedabad, Vadodara, Surat and Rajkot into world class
cities;
Metamorphosis of the urban sector through reforms and infrastructure
development;

Vibrant Gujarat Global Investors Summit 2009


26
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

The Government of Gujarat organized the 4th biennial Global Investors'


Summit 2009 during 12-13 January, 2009. Main aimed global investors summit
was to 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.

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

Prepared by: Dhanani Prakash R.

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

Not everyone is impressed with these figures as doubts have been


expressed over the conversion rate of these commitments. The Congress, which is
the main opposition party in the state, says Vibrant Gujarat is too much of hype as
the conversion rate is only 25 per cent. The state government predictably trashes
this. Around 60 per cent of investment commitments have actually come, officials
say. If these numbers are correct, its a significant achievement by any yardstick.

28
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

In December, over 110 MPs passed an early-day motion in UKs House of


Commons to support the summit. And this was for the brainchild of a man who
was in 2005 denied a diplomatic visa to visit that country because of the postGodhra riots slur.
The first day of the event saw investments to the tune of Rs 7.5 lakh crore
in sectors such as non-conventional energy, ports and shipping, special investment
regions, power, oil and gas, petroleum, chemicals and petrochemical investment
regions and SEZs.

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

Prepared by: Dhanani Prakash R.

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:

According to MR. S. VENKATACHALAM (President SINTEX), Sintex


has 13 different manufacturing processes in field of thermoplastic. Sintex offers the
wide range of products which help people to use against wood made containers or
steel container etc. Internationally, Company has acquired a number of companies
in field of Automotive Plastics & Composites. Acquired companies like Wausaukee
Composites & Nero Plastic in USA, NIEF Plastic in France, Bright Auto Plastics in
India, for Container Company has tie-up with Container Solutions Inc in USA, For
Waste Water Treatment Solutions with Aqua Nishihara of Japan. Which make
being of Sintex in Gujarat Proud.
Lets Not Chop Woods, to Store Our Goods
(Annual Gujarat Review08. The Financial Express, January 2009)

According to MR. DHIRUBHAI PATEL (Chairman & MD, Magnetic


Industries Ltd) Magnetic Industries Ltd is leading manufacturer of Submersible
pumps & Electric Motors have come up with concept of Champion Agro World.
Project has been introduced in the country for the first time. Rajkot is the leader in
manufacturing agriculture equipment & machineries. A Magnetic Industry is a
reputed name in this field. The company has opened number of agro centre in
different taluka in Saurashtra. It provides to farmers such as seeds, fertilizers,
31
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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)

According to SHRI I. P. GAUTAM (Municipal Commissioner,


Ahmedabad), The Ahmedabad BRTS was officially named as Janmarg by Shri
Narendra Modi, honble chief minister in January 2007. Janmarg literally means
peoples way a road that would carry the citizens of Ahmedabad in safety,
comfort and at high speeds. BRTS is based on high quality, high capacity rapid
transit systems that deliver fast, comfortable & cost effective to urban mobility.
Vehicle travel in exclusive lanes, thus avoiding congestion. Municipal Corporation
floated a Special Purpose Vehicle (SPV) to run BRT system. This SPV is named as
Aheadabad Janmarg Limited Its an Autonomous body headed by Ahmedabad
municipal Corporation it has planned to make 88 km of BRT road in Ahmadabad.
Janmarg is creating identity for people in Ahmadabad. And it is a city that is ready
to accept a change, it is a city that has vision to change in future and it will
transform the image of public transform in India.
BRTS: JANMARG OF AHMEDABAD
Annual Gujarat Review08. The Financial Express, January 2009)

SECTORIAL REVIEW
BIOTECHNOLOGY
Global biotechnology: The sunrise industry
32
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

The collective revenue of public traded biotech companies grew 9% by


across the global 2008, generating total revenues us$ 84.78 billion for the first time
ever globally, there are a total 800 public biotech companies and 4414 private and
public companies. Its shows the growth of biotechnology

Gujarat: An emerging biotechnology hub


The landscape of Gujarat biotechnology industry consist of more than 50
biotechnology companies and 66 support organizations its turnover is around 195245 Million USD, its sector breaks into Corporate (67%), Academic institutions
(20%), R&D institutions (11%), NGOs(2%) and its stakeholders are Healthcare
(60%), Agriculture (20%), Industrial (16%), Environment (16%) & Other (8%)
Gujarat is planning to set up Biotech SEZ at Savli, Vadodara is having total area of
1700 acres largest in the country.
Changes taken by Govt. for the Industry
Gujarat State Biotechnology Mission (GSBTM), has been constituted to
encourage new entrepreneurs and attract new investors, State Biotechnology Policy
2007 12 has been formulated, Gujarat Biotechnology Venture Fund (GBVF) to
support entrepreneurs with INR50 Crore, The state propose a special purpose of
incentive on mega project with investments of 100 Crore or more, Gujarat
Biotechnology cash Residential Programme for Students is formulated.
Company Such as Concord Biotech, Maps India, Zydus Cadila, Bayer
Corpscience, Intas, Torrent, Sun Pharma, Cadila Pharma etc.

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

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

electricity in Gujarat has increased from a meager capacity of 385 MW in


1966 to 9,628 MW in March 2008. The state achieving a per capita
consumption of electricity of 1,354 units for the year 2006-07, which is more
than twice the national average of 665 units. There are 23 power plants located
in Gujarat which includes nine thermal power plants, nine gas power plants, four
hydro power plants and one atomic power plant.

Power plant in Gujarat


Installed
Share in
Power Plants Number of Capacity
(MW)
Generation
Plants
(%)
Thermal Power

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.

POWER SCENARIO IN GUJARAT


(A) Capacity available in March 2007

9,561 MW

(B) Projected peak demand in 2012 (16 th EPS*)


(C) Installed capacity required by

14,031 MW
18,708 MW

2012 (75% Utilization)


(D) Planned capacity addition by 2012 (confirmed)

11,164 MW

35
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

(E) Capacity available by 2012 (A+D)

20,725 MW

(F) Projected peak demand in 2017 (16 th EPS)

18478 MW

(G) Further power projects through MoU route

8,200 MW

(H) Nuclear capacity likely addition

7,400 MW

(I)

Projects of 12th FY plan onwards (firm)

5,680 MW

(J)

Total capacity planned by 2017 (E+G+H+I)

42,005 MW

(K)

Surplus capacity planned for additional projects (J-F)

21280 MW

LEADING INDUSTRY PLLAYER


Adani Enterprises Ltd. (AEL), is a diversified company and operates in
different commodity groups, such as, power, oil and gas, real estate,
agriculture, metals and minerals with shipping
Adani Enterprises Ltd. diversifies into power trading as well, this division has
targeted for trading of 3000 MU during the year 2006-2007 and plans to increase
it to 5000 MUs over next five years.
Tata Power Company (TPC) Ltd. is Indias largest private power company
TPC has announced the signing of an EPC contract for supply of five 800 MW
Steam Turbine Generators with Toshiba Corporation for the first 4000 MW
Mega Power Project (UMPP) at Mundra, Gujarat.
The Bharat Forge-Alstom joint venture to make power equipment at an
investment of Rs 2,400 crore is setting up the plant in the Mundra SEZ.
The facility, spread over 120 acres, will be the largest of its kind in the private
sector in the country with the capacity to manufacture high-efficiency power
generation equipment.
The foundation stone for the facility was laid at Mundra today by the Gujarat
Chief Minister, Mr Narendra Modi. This project will utilise Mundra Port
extensively for moving project equipment manufactured at the site to
36
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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.

CHEMICAL & PETROCHEMICAL INDUSTRIES


Gujarats chemicals and petrochemicals industry is one of the fastest
growing sectors in the state economy. Offers a large spectrum of opportunities for
both investors of India and abroad. Gujarat contributing to more than 51% of
Indian production of major chemicals.
Petrochemicals contribute 62% to the total production of country. And
Gujarat contributes 15% of total national chemicals export. 31 MoUs &

37
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Announcements were signed in Vibrant Gujarat 2007 for the projects to be


established in the Chemicals & Petrochemicals.

Key initiatives undertaken by the Government, for Generation of skilled


manpower. Academic institution offering Chemical Engineering course includes:
Nirma University of Science & Technology, Ahmedabad.
Government Engg. College, Valsad.
L. D. college of Engg., Ahmedabad.
There are 39 Engineering Colleges in Gujarat offering chemical Engg.
49 polytechnics offer courses in Chemical Sector in Gujarat.
Govt. Polytechnic, Rajkot.
K. J. Polytechnic, Bharuch.
Govt. Polytechnic, Valsad.\
Industries such as Reliance industries ltd., TATA Chemicals, Essar Global
Ltd., Indian Oil Corporation, ONGC, Sakata Inx India, Dow Chemical Company
etc. Gujarat has opportunities ahead of High Performance Chemicals, Engineering
Plastics, and Refinery Downstream Projects etc.

GEMS & JEWELLERY


The gems & jewellery sector is one of Gujarats flourishing industries which
focuses on constant innovations in jewellery design to fulfill the requirements of
the International Business Community.
Surat is the Diamond polishing hub of India and the world, Rajkot city is
internationally known for its unique handmade gold and silver ornaments which
38
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

MINERAL RESOURCE & MINERAL BASED


INDUSTRIES
Gujarat is a Mineral Rich state both in term of reserves and production, It
ranks 6 in India, This sector contributes to 2.9% to the State GDP, State accounts
for the 13% of the total number of operating mines in India. Mineral Production in
the state amounted to 43.7 million metric tones in 2005 06, Gujarat is leading
producer of limestone, lignite, bauxite, dolomite, fireclay, bentonite and fluorite,
Gujarat is the highest producer of bentonite, silica, sand and fluorite & 2 nd highest
Producer of bauxite, lignite, fireclay & clay, Gujarat is the only producer of
mineral such as Perlite & Chalk in the country.
th

Major minerals producing districts in Gujarat are Kutch, Junagadh,


Jamnagar, Porbandar, Bhavnagar, Rajkot, Amreli, Banaskantha, and Sabarkantha.
State owed Gujarat Mining Development Corporation (GMDC) is the largest
mining company in Gujarat.
Government Initiatives such as promotion of lignite exploring to meet
power demand in the state, Preparation of mineral policy, mineral atlas and other
various publications, Encouragement of private participation and outsourcing for
the mineral base of Gujarat, Enhancement of infrastructure facilities in mining
clusters such as Road, Water and First aid medical care.
Opportunities ahead for MINERAL RESOURCE & MINERAL BASED
INDUSTRIES are
Lignite: power plant, lignite chemicals, Underground Coal gasification
Bauxite: Alumina Plant, Alumina Chemical Complex, Cement Plants,
refractory units, chemical units.
Limestone: Soda ash plant, cement industry, chemicals

41
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

OIL & GAS


Gujarat is known as the Oil & Gas capital of India with Bharuch, Surat,
Jamnagar, & Vadodara being the major centers. Gujarat Ranks 1 st in the production
of Crude oil and Natural Gas in India. The state has highest number of oil fields in
India. 37% of Indias installed refining capacity is in the State of Gujarat, which is
highest in India. Reliance Petroleum Ltd. Is the largest refinery in India and biggest
grass root of the refinery hub in world
Gujarat is the only state in India with state-wide gas grid and multi gas
suppliers. Only state with an extensive transmission network almost 1,200 km of
gas grid is in operation and around 800 km in under construction and an expansion
of around 200 km is planned. Established by Gujarat Gas Corporation Ltd. there
are 80 CNG stations, present in Gujarat. Of these, 12 are under GSPC in 7 districts
Surat, Bharuch, Vadodara, Ahmedabad, Mehsana, Gandhinagar, and Sabarkantha.
Industrial Presence in Gujarat of the Oil & Gas Sectors are Cairn Energy,
Shell, Essar, Oil & Natural Gas Corporation, British Gas, Reliance, GAIL, Petronet
LNG, Adani. Academic Facilities, In collaboration with Gujarat Research &
Management Institute (GERMI) & Gujarat State Petroleum Corporation (GSPC), a
Petroleum University has been established in Gandhinagar. University undertake
following institute:
Institute of Petroleum Technology.
Institute of Petroleum Management.
Research & Innovation Center etc.

42
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

MoUs benefits are solving of Land Problem, Tax benefit etc. Over all
ABOVE AVERAGE work done by Government of Gujarat as per ET.

BUSINESS STANDARD, AHMEDABAD


Mr. Vinay Umarji Principal Correspondent,
Vibrant Gujarat is a Platform created by state Government for potential
investors in the state. Its a nice way to hold a big event. Positive signal by
company that Government is (Proactive)
Some of the benefits that we can talk that of the Vibrant Gujarat can be as
follows: Speedy Land Approvals, Speedy MoUs Signing, and Making duracracy
more transparent, Speedy Growth of Infrastructure, Increase in Port Facility.
Changes needed in Vibrant Gujarat as per Business Standard are as follows:
Frequency of signing MoUs should be decreased, and the event should be held
every Four Years not Two Years.
As Vibrant Gujarat has came up but still they are Lacking in making growth
of Textile Industry as textile still has not develop as it should be developed.
Positive points are enough support to Small & Medium Enterprise, & other
sectors are too developing which could not have been in Gujarat developed without
it.

Chamber of Commerce & Industry, Ahmedabad


Mr. Bipinbhai Dy. General Secretary,
Vibrant Gujarat is a Platform provided for the Industries which are already
there and need to grew & also for the new industries which want to develop
Vibrant Gujarat make them easy to undergo to the procedure easy
So as per the chamber of commerce its a process through which old and
new industries both develop at same growth rate.
Former Gujarat was agriculture based state where industry interference was
there but less its Mr. Narendrabhai Modi who gave equal important to the Industry
development with the agricultural development.
They then started fist summit for the Gujarat when it was responding well
through the investors not only from Gujarat & India but also globally it responded
well then they started Vibrant Gujarat Global Investor Summit.

45
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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.

Participants of Vibrant Gujarat, Ahmedabad


Career Mosaic Pvt. Ltd. Mr. Mahendra More,
Its a summit which grabs the old and new investors into its chain and
facilitates them in business.
They are based on the business on Food-Agri Products Business. According
to them this is such type of business where market never ends. And the scope of
business is also very wide.
Benefits given by government after becoming the participants of Vibrant
Gujarat are as follows: Financial support from the government, some type of tax
savings etc.
What they felt about Vibrant Gujarat is that the management is going very
smooth and smart, nice efforts by government of Gujarat it makes them to differ
from other state government, now they are going for the global so more
opportunity for the investors to grab it.
Tulip Telecom Pvt. Ltd. Mr. Sanjay Jhamb (Branch Manager),
Vibrant Gujarat is an event which attracts the investor to invest and making
Gujarat compatible with the world.
They are in to the business of Data Connectivity and their core business is
MPLS, (Multi-protocol Label Switching) providing an internet to their customer
its cheaper than the other, Internet Bandwidth etc are their business.
Here in this type of company after becoming the participants of Vibrant
Gujarat they got benefits for owing Infrastructure across the country such as
Permissions & Financial help and other help too from government.
Aahar Products Pvt. Ltd. Mr. Anurag Kothawala,
Vibrant Gujarat is an event which focus on small and big business both and
their core message to industry is development.

46
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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.

Arion Engineering Pvt. Ltd. Mr. Shalibhadra Sheth,


Vibrant Gujarat is an investor summit which provide platform to the
investor and finds a new opportunity for the investor in to the different business.
They are into the business of Engineering & Auto business and they are in to
the production of Auto component which are for the project of TATA NANO
Project and their core business is Manufacturing Equipments and they were feeling
benefited through vibrant Gujarat because they were able to avail the contact of
providing machinery to the TATA NANO. And other helps such as land, and
financial problem etc.
And as they were in to the business of Engineering & Auto business which is
in very developing stage this day in Gujarat so they were got good preference from
government of Gujarat.
Bakeri Engineering & Infrastructure Mr. Pavan Bakeri,
Vibrant means and big and which has no end so this event is as vibrant as
its name Vibrant Gujarat and attack not only Indian entrepreneur but too the
world and make World of Entrepreneurs in Gujarat.
They are into the business of Urban Development and their business is to
build Residential Township, school, temple, small & residential bunglows, & office
etc. they get benefit that they easily were able to mark that were the industry are
going to patch their investment and where the development will take place
according to them they build the bunglows office etc as per needs and then their
land approvals, finance etc. helped by government. Supportive state government
which makes them differs from other state government.

47
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

REVIEW ON SELECTED SECTORS


1:PORT &RELATEDINDUSTRIES
Gujarat is strategically located with Indias longest coastline of 1600 km
and is the nearest maritime outlet to Middle East, Africa and Europe. The state has
42 ports which include 1 major port and 41 non- major ports. The state has the
highest number of operational ports and commercial cargo ports. The first state in
India to invite Private Sector Participation through competitive bidding. The first
state in India to have Chemical Terminal and facility to handle liquid cargo. The
first private port of India Pipavav is in Gujarat. The state also has the worlds
one of the largest ship recycling yards at Alang. The state ranks first in terms of
cargo throughput amongst all Indian ports handling 147 MMT cargos in 20072008.

Gujarat Ports opening the gateway to prosperity


42 ports along 1,600 km coastline, Major port at Kandla, other important ports
at Mundra and Pipavav.
Landmark projects such as LNG port terminal at Hazira developed by Shell
India Limited, green field port at Mundra developed by Gujarat Adani Port
Limited, LNG terminal at Dahej developed by Petronet LNG Ltd. and Pipapav
port developed by Gujarat Pipapav Port Ltd.

The Current Scenario


48
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Gujarat handled majority share of 79.84% of traffic in Indias minor and


intermediate ports in 2006-2007 and 71.5% of the total cargo traffic in Indias
Non-major ports.
Gujarat handles 11.5% of the total cargo traffic in Indias major ports
The non-major ports of Gujarat handled cargo traffic of 147million tones in
2007-2008 an increase of 11.44% over the previous year.
The total imports traffic handled during the year 2007-2008 by the ports
amounts to 86.75 million tones while that of exports traffic during the year is
50.10 million tones.
Over and above container cargo of 124,1617 TEU has been handled in the
year 2007-2008
Port infrastructure like captive terminals, direct birthing ports, rail linkages,
private sector port and private jetties exhibited considerable growth

Gujarat: Investment trend & Government policy


Port & Ship Building Industry

49
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

1) The Summit attracted Expressions of Interest (EoI) worth Rs24,000 crore

(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.

Port sector at a glance


The cargo handled at the ports has been growing at an Average Growth Rate of
50
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

11.1% over the period of 2004-06


Growth rate of container traffic is growing at a rate of 19.3% in 2006-2007
There has been a significant increase in Indias maritime trade, with traffic
increasing from 165 MTPA in 1991 to over 649 MTPA in 2006-07.
Further, the Ministry of Shipping projects the port traffic to grow to a level of
790 MTPA by 2010 based on assumed GDP of 7%. As a result, the Indian ports
require capacity expansion.
US$13.5 billion (Rs.60,750 crore) of investments is envisaged for the major
ports under National Maritime Development Programme (NMDP) to boost
infrastructure at these ports in the next seven years. 64% of the proposed
investment in major ports is envisaged to come from private players.
12 major ports are Port Trusts governed by the provisions of Major Port Trust
Act and one major port is a corporate port.
In addition, there are 187 minor and intermediate ports, out of which 41 minor
ports are based in Gujarat.
Indian ports handle 95% of India's total foreign trade in terms of volume and
70% in terms of value.
Indian ports handled cargo of 649 million tones in 2006-07, a 14% increase over
2005-06.

2:MICRO, SMALL & MEDIUM ENTERPRISES

51
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Classes of MSME
Enterprises Investment in Plant &

Machinery (Manufacturing)

Investment in
Equipment (Services)

Micro

Less than Rs. 25 Lakhs

Less than Rs. 10 Lakhs

Small

Rs. 25 Lakhs Rs. 5 Cr

Rs. 10 Lakhs Rs. 2 Cr

Medium

Rs. 5 Cr Rs. 10 Cr

Rs. 2 Cr Rs. 5 Cr

Small Scale Industries


Gujarat has continued to witness impressive development in the small scale
sector. There were only 2169 small scale industrial units in 1961. The number of
SSIs increased to 15,849 in 1970, 43,712 in 1980, 1,15,384 in 1990, crossed a
figure of 2,50,000 and were at 2,51,088 in 2000. The number of small scale
industrial units has increased to 2,78,656 by March 2003.
Ahmedabad leads among districts with highest number of small scale
industrial units at 61,185 constituting 21.96% of total SSI units in the State.
Ahmedabad is followed by Surat with 41509 units (14.90%) and Rajkot with
30,077 units (10.80%), thereby constituting 48% of total SSI units among these
three districts. Besides, Valsad (17077), Vadodara (15873), Mehsana (14843),
Kheda (13586), Bharuch (12766), Jamnagar (11846) and Bhavnagar (11196) have
more than 10,000 small scale industrial units as on 31.03.2003.

Medium and Large Industries


All industrial units other than SSIs are covered as medium and large

52
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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

Investment & Employment Trend of MSMEs

53
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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.

Gujarat has several institutions that support the growth of


MSME segment in the state:
Small Industry Service Institute (SISI)
SISI is an arm of the office of the Development Commissioner, Small
Industry Development Organization (SIDO), New Delhi, in Gujarat state.
SISI helps MSMEs meet various needs of planning, assessment and
implementation by offering services in technical consultancy, industrial
management, training and workshops.
Gujarat Institute of Development Research (GIDR)
It is an autonomous body engaged in research related to development issues.
GIDR, through its Industry and Finance research, undertakes study on
sectoral development. A large portion of studies undertaken by the institute
have focused on development of small scale rural industries.
Entrepreneurship Development Institute of India (EDI)
It is an autonomous body supported by Government of India and
Government of Gujarat and sponsored by other apex financial institutions.

54
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

EDI offers education of excellence in entrepreneurship, training and


research. The institute has a mandate to promote the creation of Micro, Small &
Medium Enterprises.

Center for Entrepreneurship Development (CED)


It is an autonomous body jointly promoted by Government of Gujarat, GIIC*,
GIDC*, GSIC* and GSFC*. CED aims to cater potential entrepreneurs by
grooming their management skills. The institution offers variety of learning
platforms for micro, small and medium enterprise creation

Small Industries Development Bank of India (SIDBI)


SIDBI is a national support institution for small and medium enterprises for
their financial requirements and up gradation. Its mandate is to work for
technology up-gradation in Micro, small & medium enterprises clusters.
District Industries Centers (DIC)
DICs, under the governance of Industries Commissioner ate supports the
development and economic activities of MSMEs, at district level.

District wise Dispersal of MSMEs in Gujarat

Ahmedabad region has the highest number of registered MSMEs in Gujarat


constituting 21% of the total MSMEs present in the state
Ahmedabad, Surat, Rajkot, Vadodara and Valsad are the major MSMEs clusters
in the state.
55
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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

investment, 47.8 % of production & 47.2% of employment in MSME sector in


Gujarat.
Ahmedabad district leads in the state with the presence of all MSME
industries cluster followed by Rajkot, Surat and other districts.

Industry Sector wise MSMEs


Industry Sector
Textiles

In %
21.40%

Machinery & Parts except Electricals

7.60%

Metal Products
Food Products

0.80%
5.30%

Chemical & Chemical Product

5.00%

56
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Wood Products

4.30%

Electrical Machinery & Apparatus

3.80%

Non-Metallic Mineral Products


Basic Metal Industries

3.60%
2.80%

Paper Prod. & Printing


Rubber & Plastic Prod.

2.60%
2.80%

Transport Equipments & Parts

0.90%

Leather Products

0.80%

Beverages, Tobacco & Tobacco Products

3.60%

Others

31.90%

Incentive for MSME in Vibrant Gujarat


Interest subsidy
Initiatives to SMEs for setting up new projects, expansion, diversification or
modernization
5% interest subsidy up to Rs 5 lakhs per year for the five year period

Technology up gradation

57
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Interest subsidy 3% p.a maximum up to Rs 3 lakhs on term loan toward capital


equipment
Facility available for technology acquisition fund and assistance for patent
registration

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

Prepared by: Dhanani Prakash R.

Over 24% to 28% of fixed investment, production value and employment of


Small Scale Industries (SSI) are from textiles sector.
Presence of textile-related academic institutes caters to the manpower
requirement of highly labor intensive industries
Technical textiles are a key emerging area with over 860 units in Gujarat (as per
Government of Gujarats survey report).
Surat is Indias strongest base for synthetic fabrics.
The State has recorded a major increase in cotton production amounting to 9.3
million bales in 2006-07 (35% of total national production).
Production of cotton is concentrated in the districts of Surendranagar, Rajkot,
Vadodara, Ahmedabad, Bharuch, Mehsana and Bhavnagar.
Contributes 30% of fabric production (organized sector) and 40% of art silk
fabric (Surat) production in India
Over 95% of power loom machinery manufacturers of India are in Gujarat
Gujarat accounts for 12% of India's textile exports.
Export items include raw cotton, synthetic products, denim, processed and
texturised yarn, grey woven and knitted fabrics, non-woven fabrics, bed linen
and garments.
Export destinations include: Europe Middle East, China, Thailand, Turkey etc

Small and Medium enterprise of Textile in Gujarat

Area

Textile Clusters

Ahmedabad Cotton and blended fabric, denim, made-ups,


ladies' dresses, textile machinery and its parts
Surat

Umargaon
Jetpur

Art silk fabric, synthetic textiles, Jari


manufacturing,
embroidery,
textile
machinery and its parts
Modern power looms, synthetic suiting and
shirting
Hand printing and processing units

Manavadar Cotton ginning


Kutch

Textile handicrafts
59

IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Industrial parks in Gujarat


Industrial Park
Gujarat Eco Textile Park Ltd. Surat
Vraj Integrated Textile Park Ltd Ahmedabad
Surat Super Yarn Park Ltd, Surat
Shri Laxminarayan Industrial Co. Operative
Service Co. Ltd., Surat
Fairdeal Textile Park Ltd, Surat
Mundra Integrated Textile and Apparel Park

Area
(Hectares)
11,364.24
11,000
10,621.09
5,603
12,195.37
116

Initiatives by Government of Gujarat for Textile Industries


10% credit linked subsidy for technical textiles.
Establishment of Centers of Excellence at ATIRA and MANTRA for providing
training in technical textiles.
Financial support to ATIRA & MANTRA since 2004 for training weavers,

jobbers and power loom owners regarding technology up gradation.


Provision of stipend to trainees in all five power loom service centers in Gujarat
Formulation of scheme for setting up apparel training institutes Financial.
Assistance to NIFT for providing Training to Trainers.
Financial assistance for market promotion and development.
Assistance for environment protection.
Assistance for infrastructure projects.

60
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Gujarats SEZ Advantage for Textile Industries


For SEZ units
Income tax incentives
10 year corporate tax holiday on export profit 100% for initial five years and
50% for the next five years

Other benefits

Exemption of electricity duty


Duty-free procurement of capital goods (including second hand capital goods),
raw materials and consumable spares from domestic market
Full freedom for sub-contracting
Facility to realize and repatriate export proceeds within 12 months
Facility to retain 100% foreign exchange receipts in the export earners
foreign currency account.

For developers of SEZs


Income tax incentives
61
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

100% tax holiday for a period of any 10 consecutive years out of 15


years beginning from the year in which the SEZ is notified
Exempt from dividend distribution tax
Tax exemption on interest of long term finance
Long-term capital gains arising on transfer of shares in developer company tax
exemption
No minimum alternate tax (MAT)
Other benefits
Full freedom in allocation of developed plots to approved SEZ units on purely
commercial basis
Full authority to provide service like electricity, water, security restaurants and
recreation centers on commercial lines
No net foreign exchange earning requirement imposed

Common incentives
Indirect tax incentives
Nil customs duty
Nil excise duty
Exemption from central sales tax
Exemption from service tax
Exemption

from securities transaction tax

Exemption from tax on sale of electricity for self-generated and purchased


power

SEZ scheme has been introduced to provide hassle free environment and

62
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

state of the art infrastructure.


Gujarat has liberal labor policy providing complete flexibility in SEZs.
SEZ Development Committee monitors infrastructure development for
each SEZ.

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

Prepared by: Dhanani Prakash R.

4: GUJARAT: ENGINEERING AND AUTO


Gujarat contributes to over 8% of Indias total engineering output, and is home
to several industrial units with operations across the entire engineering value
chain.
Over 300 units in large sector and over 75,000 units in small and medium
enterprises (SME) sector (excluding repair and services).
Major production base for sponge iron, steel pipes and tubes, copper cathode,
electrical,

switchgear,

transformer

and transmission line towers, heavy

fabrication, ship building and auto components.


30 out of the 83 product clusters in the State are dedicated to engineering and
auto sector.
Major engineering clusters in Gujarat include foundry, ship breaking, induction
furnace industry, steel re-rolling mills, brass parts, oil engines, fabrication,
machine tools, auto components and SS utensils.
Gujarat accounts for 38% (564 km) of total DFC length (1483 km).
The influence area of 150 km on either sides of DFC is being developed as
Delhi Mumbai Industrial Corridor (DMIC).
62% of total area of Gujarat State (18 out of 26 districts) would be benefited
by DMIC development.
82 links in the DMIC influenced area would be developed offering connectivity

64
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

between ports, industrial estates, hinterlands, markets and points of agricultural


produce.
Four investment

regions

would

be

developed

in

the

first phase

(2008-12).

Share (%) of engineering sector in Gujarats industry


Factory (nos.)
Employment
Fixed Capital Investment
Value of Output
Value Added

29.03
23.58
7.15
10.1
12.72

SEZs for Engineering & Auto in Gujarat

SEZ
Essar Hazira SEZ

Developer

Location

Area (hec ) Segment

Essar

Hazira

267

Engineering

230

Industrial
machinery
& ancillary

Gallops
SEZ

NG Realty Pvt. Ltd. Ahmedabad

Suzlon SEZ

Suzlon
Infrastructure Ltd.

Vaghodia,
Vadodara

101

Engineering

Dishman SEZ

Dishman
Infrastructure Ltd.

Ahmedabad

145

Engineering

E Complex SEZ E Complex Private


Ltd.

Rampara&
Lunsapur, Amreli

156

Engineering

Welspun Anjar
SEZ

Anjar, Kutchh

121

Engineering

Welspun

65
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Ruchi Flat Steel Indian Steel


Corporation Ltd.
SEZ

Bhimasar, Kutch

164.80

Flat Steel

PSL SEZ

Ramparal
Pipavav,
Amreli

105.67

Alternative
Energy
and
Ancillaries

PSL Ltd.

Support to Industry by Government of Gujarat

Labor reforms to facilitate industrial investment to

Good
Governance

Generate employment and ensuring productivity.


Up gradation of industrial and urban infrastructure
Power reforms
Port-led development
Interest subsidies at 5% to SMEs for setting up new units,

expansion and modernization of existing units

Development
of small medium
enterprises

Cluster
development

Interest subsidy at 3% to SMEs for technology upgradation of


existing units
Financial assistance to SMEs for quality upgradation,
including obtaining ISO9000 and ISO 14000 certification
Assistance for filing patents
Government has decided to recognize a cluster with a
critical mass of a minimum of 50 units located within
the radius of 10 km at a particular location
Common facility centers for clusters to be encouraged
U n d e r the scheme, assistance will be given to cluster
association for carrying out certain activities leading to
further strengthening of the clusters.

66
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Gujarat has 55 SEZs approved by the Government of India,

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

Regions wise Investment in Gujarat


Main Regions
1. Delhi Mumbai Industrial Corridor (DMIC)
2. Palanpur-Sidhpur-Mehsana Industrial Area
3. Ahmedabad-Dholera Investment Region
4. Vadodara-Ankleshwar Industrial Area
5. Bharuch-Dahej Investment Region
6. Petroleum, Chemicals & Petrochemicals Investment Region (PCPIR)
7. Surat-Navsari Investment Region
8. Valsad-Umbergaon Industrial Area
9. Logistic Parks

Delhi Mumbai Industrial Corridor (DMIC)

67
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Delhi Mumbai Industrial Corridor to be developed as global manufacturing &


trading hub- supported by world class infrastructure & enabling policy
framework
2 Investment Regions and 4 Industrial Areas identified in Gujarat
DMIC Influence Area in Gujarat includes:
18 districts out of 25
74% of population (37 mn)
29 of 53 SEZs

Palanpur- Sidhpur- Mehsana


Location:
Strategically located at the Dedicated Freight Corridor, the area is in vicinity with
major cities such as, Ahmedabad, Kutch.
The area is in vicinity with Kandla, Mundra and Pipavav ports

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

Prepared by: Dhanani Prakash R.

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.

5: FOOD AND AGRI BUSINESS


Global Snapshot
Global food product industry generated total revenue of US$ 2,675.7 billion
in 2006. Global food industry grew by 3.1% in 2006 to reach a value of US$
2,675.7 billion. A growth of 17.2% is projected till 2011 to achieve a value of US$
3,137.2 billion. Europe is the Highest Contribution Region in global food
processing industry with a share of 38.20% followed by Asia Pacific region.
Global food processing industry snapshot
Marketing segmentation as per geography
Geography
% share
Europe
38.20%
Asia Pacific
31.20%
US
20.10%
Rest of the World
10.50%

69
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Market Segmentation of global food Products in 2006

32%

Packaged food and meals

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

India : Agricultural Facts


Production (2006 - 07)
Mn Tonnes
345.31
227.00
148.18
216.13

Growth over 2005 06


23%
23%
5%
4%

Gujarat is endowed with abundant natural resources in term of varied soil,


climatic Conditions and diversified cropping pattern suitable for agricultural
activities. Gujarat stands fourth in the country in term of per capita agricultural
output.

70
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

Balance use of fertilizers


Crop Planning
Seed Application
Organic Farming
Quality Production
Free input kit distribution to farmers
Global good agriculture practices
GAP Certification
Scientific Farming

Initiatives

Largest producer of castor and cumin in the world.


Largest producer of isabgul in the world.
Largest producer of cotton in India.
2nd Largest producer of sesame and groundnut in India.
Highest productivity of mustard, castor, cotton, and potato in India.
2nd highest productivity of groundnut, bajra and banana in India.
3rd highest productivity of gram, jawar, mango, pomegranates and tomato in
India.

Key strategies to increase area, production and yield of agricultural crops:

Diversification towards high value, WTO competitive and sustainable crops.


Promote multiple cropping and inter cropping.
Increase coverage under quality seeds planting material.
Extension of adoption of micro-irrigation.
Plant protection through integrated Pest Management
Promoting use of biotechnology and organic farming for value addition.
Encourage public private partnership.
Facilitating hi-tech agriculture in farm mechanization and drip irrigation.
Micro level crop wise planning.
Direct link to farmers by the means of IT
72

IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

Investments during Vibrant Gujarat 2007

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

Prepared by: Dhanani Prakash R.

5 The industries must be encouraged and forced for the environment preservation
and balance in ecology.
6

Heavy industries must understand the concept of social responsibilities.

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

Prepared by: Dhanani Prakash R.

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

Prepared by: Dhanani Prakash R.

BIBILOGRHPHY

www.vibrnatgujarat.com

www.wikipedia.com
Magazine on vibrant Gujarat
Financial express.
Eco-Development periodical.

76
IMPACT OF VIBRANT GUJARAT ON DIFFERENT SECTORS

Prepared by: Dhanani Prakash R.

S-ar putea să vă placă și