March 16, 2018
FY2017 Study on business opportunity of High-quality Energy Infrastructure to Overseas
(India: Study on possibility of Infrastructure Development in Smart City in Gujarat State)
To,
The Ministry of Economy, Trade and Industry (METI) of Japan
Global Strategic Advisory Department
1. Project overview P.2
1
2. Target area development as role model for Make in India P.8
3. 10 year vision for the S. M. B. area and milestone P.117
2
1. Study overview
1.1 Objective P.3
1.2 Target area of study P.4
1.3 Methodology and team P.5
3
Objective and Research Contents
On 14th Sept 2017, Memorandum of Cooperation was inked between the Ministry of Economy, Trade andIndustry (METI), Japan and the State Government of Gujarat, India, where both sides has recognizedGujarat State as key state in terms of “Make in India” initiative and agreed to setup the “Japan and India Special Program for Make in India” in Mandal-Becharaji-Khoraj, Gujarat to cooperate on hard and soft infrastructure for facilitating investment in the region.
With reference to the above, the “Japan and India Special Program for Make in India” in Mandal-Becharaji-Khoraj, Gujarat, Ministry of Economy, Trade and Industry (METI) ,Japan has launched research work on overall regional development for visualizing Gujarat - Mandal-Becharaji-Khoraj region in next 10 years. For reference some key focus areas are to study are as follows Research Contents,
Future Planning on “Japan and India Special Program for Make in India”
In Mandal-Becharaji-Khoraj, Gujarat Objective
1) Investment Potential by Japanese companies in Mandal-Becharaji-Khoraj region and infrastructure improvement required by Japanese companies.
2) Requirements for formation of Industrialization Cluster such industrial Parks, incentives, human resources –industrial workers, Industrial & basic social infrastructure(road, water, power, telecommunications) , residential & commercial areas , logistics system etc.
3) Smart infrastructure implications such as public transport system, smart grid and logistics systems, 4) Present SIR policy challenges & issues etc. 5) Government Initiatives for development of Mandal-Becharaji-Khoraj region
Identifying Investment potential and boost in infrastructure development Study
Contents
1.1 Objective
MoC has been signed on 14th September 2017 between the
The State Government of Gujarat of India and METI.
Area of Cooperation (1) Planning
Both sides will conceive a mid-term industrial development prospect in the region.
Both sides will identify concrete needs for hard and soft infrastructure such as
industrial estate, transportation, energy, telecommunication, human resources,
residence and others from mid-term perspective.
(2) Implementation
Hybrid Industrial Park
A Hybrid Industrial Park may be considered through public-private partnership (PPP).
The State Government of Gujarat will provide an area of land whose legal status, rights
and obligations have been cleared, and infrastructure with sufficient capacity and
quality for industrial activities by Japanese companies. A Japanese service provider may
provide Plug & Play factory, logistics, accounting, HR, government approvals support,
common canteen, commuting transportation service, etc.
This may be facilitated by provision of land for industrial park for Japanese industries
to come and set-up their facilities in the State. To facilitate this, Gujarat Industrial
Development Corporation (GIDC) has identified & reserved land in Sanand-III (Khoraj).
The State Government of Gujarat will continue to support the Mandal Industrial
Township, especially in terms of land acquisition, infrastructure development and the
special incentive package under the “Japan Industrial Township”, among others.
(3) Physical Infrastructure
The State Government of Gujarat will develop key infrastructure.
The investment Promotion Program Loan (Gujarat Investment Promotion Program:
GIPP) by Japan International Cooperation Agency (JICA) will be considered for the
infrastructure development.
c) Bilateral Promotion Activities
Both sides will cooperate on promotional activities for Japanese companies in order to
further increase investment to the State of Gujarat. The activities include, among others,
various services for SMEs, such as providing information, legal consultation, assistance
for acquiring governmental permits and business matching opportunities.
(d) Residential and Commercial Township
The State Government of Gujarat will invite private companies to develop sufficient
residential and commercial facilities under the improved Mandal-Becharaji Special
Area Map and MoC between the State Government of Gujarat and METI , Japan.
1.2 Target area of study
Sanand 3 (Khoraj) Sanand 2
Mandal Industrial Park
HMSI
Suzuki Motor Gujarat
Area Map
( Mandal-Becharaji-Khoraj )
MOC “Japan and India Special Program for Make
in India” In Mandal-Becharaji-Khoraj, Gujarat
4
Methodology
1.3 Methodology and Team
• The following figure shows our whole research process for final report
With Infrastructure
Developing Companies
• Possibility and issues
related to Smart
Infrastructure (SI)
business
Expected Investing
Companies
• Hearing of issues to
expected companies to
invest in the Target
region.
Interview
Data Collection & Analysis
• Acquiring subject
region concerned data
from official and
external sources for
estimating future
figures.
• Forecasting
infrastructure issues by
introducing similar
(past) cases or any
models
Desk Research
With GJ Govt. (GoGJ)Hearing to GoGJ for
infrastructure development
needs and expected issues
With Local Experts
Issues with GoGJ policies
and SIR (Special
Investment Region)
scheme evaluation
With JPN-based firms
• Views of invested
Japanese companies
for subject region
future prospects.
• What makes the
subject region more
comfortable for
business, mainly in
terms of human
resources and
infrastructure
• Any policy-related
issues etc.
Meetings in GJ
With Infrastructure
Developing Companies
• Give feedbacks to
interviewee firms
about GJ visit
• Based on GoGJ
requirements,
hearing on
proposals for
launching smart
infrastructure
proposal.
Interview
With GoGJ
Hearing to GoGJ
opinion to finalize
the content of final
report through the
discussion of
• Items or methods
which SI related
corporates
recommended to
introduce is
feasible or not
• Draft of 10 years
development vision
to hear DOs and
DON’Ts
• What shall/shall not
be included to the
final report
Meetings in GJ
Fact findings (Nov 2017 to Jan 2018) Planning (Jan 2018 to Feb 2018) Final report (March 2018)
Create a vision for upcoming 10 years
• Forecast 10 years growth of Gujarat
and its industry, mainly based on
desk research
• Build up the timeline to reach the
above-mentioned agenda:
when/how to develop infrastructure,
when/how to launch new GoGJ
policy, etc.
Report to METI and GoGJ
Ask SI related firms and GoGJ for...
further discussion in case detailed
information is required for final report
Following up (if any)
5
Team Structure
1.3 Methodology and Team
Mizuho Bank
Mizuho Information & Research Institute
NIKKEN SEKKEI RESEARCH INSTITUTE
・Project Management
・Benchmarking of industrial cluster (Delhi NCR and other countries)
・Future projection of Mandal-Becharaji-Khoraj, Gujarat
・Potential study on smart infrastructure in the area
・Analysis on current development initiative
・10 year vision and roadmap for the targeted area development
・Final report to METI and the state government of Gujarat
Role of Mizuho Bank
・Financial model analysis
・Environment effect analysis
・Study on Energy and Co2 savings
・Study on Business opportunities and effect
Role of Mizuho Information & Research Institute
・Identifying key point for industrial cluster in the area
(HR, Industrial Land, Industrial and basic infrastructure (Road, Water, Electricity, tele
communication) Residence area , Commercial area, logistics and incentives
Role of NIKKEN SEKKEI RESEARCH INSTITUTE
Final Report to METI and the Government of Gujarat on March 2018
Research order
by tendering
6
食
Industrial area and Japanese companies in Mandal-Becharaji-Khoraj
SanandⅢ(GIDC)
SanandⅡ(GIDC)
Mandal Industrial
Estate (GIDC)
Area Map ( Mandal-Becharaji-Khoraj )
7
・2,460 acers (Rs.2,600/㎡)
・Proposed Japanese industrial zone
・Expected to be open from FY2018
MBSIR
・Around 102 k㎡(24,600 acers)
・GIDB approval soon
Johnson
Hitachi
Minda Kose
Other Industrial Estate in India
Neemrana 1,167 acers
Giloth 530 acers
Supa Parner 2,300 acers
One Hub Chennai 1,500 acers
Sri City 2,700 acers
Nagata Auto
Mascot Industrial
Estate(Private)
・86 acers (Rs7,600/㎡)
AGI
Tata Battery
OILES
SH-133 is expanding
from 5.5m wide to 24m
wide(60m 6 lane is
proposed)SH-7 is expanding from
10m wide to 30m wide
(90m 8 lane is proposed)
Railway Connectivity to Suzuki
plant and other Auto hub in the
region
Area Map ( Mandal-Becharaji-Khoraj )
Hitachi Hi-Rel
Mitsui Metal
Unicharm
MORESCO
・Around 5,000 acers (Rs.3,780/㎡)
・DMIC logistic hub
HMSI
Suzuki Motor
Gujarat
Suzuki JIM
食
食
Industrial Estate
Japanese company
JIM
Japanese restaurant
食
食
食
食
・1,235 acers(Rs.2,310/㎡)
*300 acers for phase1
・Japanese Industrial
Tata motor
Ford
Source: Press release respective companies and
other public source
2. Target area development as role model for Make in India
8
2.1 Forecast of industrial area based on passed 10 years development of NRC P.10
2.2 Smart infrastructure requirement P.29
2.3 FDI potential from Japan P.38
2.4 Issues & Proposed Ideas for the Targeted Japanese Investment Area (SIR
framework, Initiatives by Gujarat for Investment, Infrastructure Development)P.50
2.5 Soft and hard infrastructure requirements for Industrialization and
Prediction of Benefits to Japan Companies P.62
2.6 Finance for infrastructure improvement P.85
2.7 Impact on Environment improvement & on society and
Analysis on CO2 reductionP.92
2.8 Advantage of Japanese Companies and Prediction of Benefits to Japan P.113
9
2.1 Forecast of industrial area based on passed 10 years development of NRC
Summary:Haryana’s Rapid Auto Industrialization from 2008 to 2015
10
Haryana Delhi
Japanese Companies (2007 → 2016)
Auto Sector Related Companies(*NIC Code Operational Factories)
Rajasthan Gujarat
Total Companies
Factory 2008 → 2015
4,388→ 6,611 (+50.6%) 6,054→ 8,005 (+32.2%) 2,889→ 2,978 (+3.1%) 14,520 → 17,884 (+23.8%)
736→ 802 (+8.9%) 171→ 243 (+42.1%) 256→ 212 (-17.2%) 384 → 706 (+83.9%)
Workers Engaged 2008 → 2015
607,527→ 744,026 (+22.5%) 351,351→ 487,520 (+38.8%) 126,816→ 122,852 (-3.1%) 1,125,543 → 1,462,206 (+29.9%)
Electricity Consumption 2008 → 2015
3,528,422 → 6,892,848 (+95.4%) 5,537,474 → 9,224,467 (+66.6%) 855,216 → 961,669 (+12.4%) 13,561,857 → 25,554,306 (+88.4%)
Total No. of Persons Engaged
(Increase in population in million as compared to 2001 census population)
170,298→ 242,837 (+42.6%) 15,988→ 50,760 (+218%) 8,131→ 5,004 (-38.5%) 44,519 → 62,596 (+40.6%) Auto Sector-No. of Persons Engaged
(*NIC Code Operational Factories)
[MWh.] Total Electricity Purchased
Auto Sector Related-Electricity Purchased
(*NIC Code Operational Factories)929,994 → 1,896,831 (+131%) 306,309 → 520,639 (+69.9%) 37,022 → 33,439 (-9.7%) 274,702 → 1,087,018 (+296%)
States Population
Population 2001→2011→2017*
[Million]
In 2011,Haryana population has reached to 25.4m, which depicts 4.2m increase during the decade 2001-2011.During 2008 – 2015 2,223 new factories are
established and presence of major Auto Anchors has attracted 802 Auto Sector related companies in total to establish their manufacturing base in Haryana
State.
Similarly, in Gujarat increasing presences of Auto Anchors may also attract establishment of new auto sector related industries in future.
Maruti Suzuki
Honda Motorcycle
Hero Motocorp.
Major
Auto
Anchors
40 → 522 1 → 182 118 → 323 5 → 300
Honda Car India
Tata Motors
Ford
Honda Motorcycle
Suzuki Motor Gujarat
21.1 → 25.3→ 27.9
(+4.2) (+2.6)
56.5 → 68.6→ 73.9
(+12.1) (+5.3)
13.9 → 16.7→ 21.9(+2.8) (+5.2)
50.7 → 60.3→ 63.5(+9.6) (+3.2)
Gas Consumption 2008 → 2015
Official data is not including gas consumption, it only mentions "Only petroleum products” or “other fuels” consumption. Industries purchase gas from public and private petroleum from related products
manufacturing companies.
Note: *NIC(National Industrial Classification 2008) Codes 3 Digit Data:291,292,293,221,231,272,274,309.
Companies having 100 or more workers & all factories covered under Joint Returns are included by ASI Data. Source: Annual Survey of Industries 2008-2014 Reports
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
11
Source: Annual Survey of Industries 2008-2014,
Census of India 2011 11
Summary:Gujarat’s growth from 2021 to 2028 based
Total Factories
Factory 2015→2021*→2028*
Workers Engaged 2015→2021*→2028*
Electricity Consumption 2015→2021*→2028*
Total # of Persons Engaged
[MWh]
Total Electricity Purchased
States Population [Million]
Population 2011→2021*→2028*
Future - Gujarat
25,498 (+42.6%) → 31,788 (+77.7%)
21,984 (+22.9%) → 24,652 (+37.8%)
18,704 (+4.6%) → 19,640 (+9.8%)
2,297,320 (+57.1%) → 2,611,853 (+78.6%)
2,039,194 (+39.5%) → 2,171,184 (+48.5%)
1,649,474 (+12.8%) → 1,494,459 (+2.2%)
49,027,638 (+95%) → 92,542,197 (+269%)
46,457,809 (+85%) → 71,721,625 (+186%)
43,887,981 (+75%) → 54,714,632 (+118%)
Gujarat
59.0
(2011)
17,884
(2015)
1,462,206
(2015)
25,108,465
(2015)
Reference
High
Normal
Low
68.0 (+15.3%) → 73.2 (+24.1%)
66.1 (+12.0%) → 71.2 (+20.7%)
65.7 (+11.1%) → 70.7 (+19.8%)
Assumption – Rate of Increase 2010/11
- 2027/28
High Double of Normal Projection 2.80%
Normal CAGR: 2005/06 - 2010/11 @GJ 1.40%
Low Half of Normal Projection 0.70%
Assumption – Rate of Increase A. 2014/15
- 2020/21B. 2020/21
- 2027/28
HighA. CAGR: 2008/09 - 2011/12 @GJB. CAGR: 2008/09 - 2011/12 @HR 6.50% 3.20%
NormalA. CAGR: 2008/09 - 2014/15 @GJB. CAGR: 2011/12 - 2014/15 @RJ 3.50% 1.65%
LowA. CAGR: 2011/12 - 2014/15 @GJB. CAGR: 2011/12 - 2014/15 @GJ 0.70% 0.70%
Assumption – Rate of Increase A. 2014/15
- 2020/21B. 2020/21
- 2027/28
HighA. CAGR:2005/06 - 2008/09 @GJB. CAGR: 2011/12 - 2014/15 @GJ 8.25% 1.85%
NormalA. CAGR: 2005/06 - 2014/15 @GJB. CAGR: 2011/12 - 2014/15 @RJ 5.70% 0.90%
LowA. CAGR: 2011/12 - 2014/15 @GJB. CAGR: 2008/09 - 2011/12 @HR 1.85% -1.40%
Assumption – Rate of Increase A. 2014/15
- 2020/21B. 2020/21
- 2027/28
HighA. CAGR: 2008/09 - 2011/12 @GJB. CAGR: 2011/12 - 2014/15 @GJ 12.10% 9.50%
NormalA. CAGR: 2008/09 - 2014/15 @GJB. CAGR: 2011/12 - 2014/15 @RJ 10.80% 6.40%
LowA. CAGR: 2011/12 - 2014/15 @GJ
B. Half of Normal Projection 9.50% 3.20%
High
Normal
Low
High
Normal
Low
High
Normal
Low Gas Consumption projection
Its challenging to predict gas consumption data as most of the companies in India purchase industrial gas from public & private gas companies. In India gas is mainly used in power generation and most
companies uses diesel for power generation by generator & uses state power supply. Therefore, prediction of gas consumption is exempted as in future there is less possibility of gas utilization in target
region by companies.
Gujarat population and industrial sector data(factories, workers, electricity) is expected to have strong growth.
Based on past Industrial data of NCR region and Gujarat, initially large scale industrial investment leads to ‘growth phase’ and as investment is peaked out & slower investment
depicts the ‘steady growth phase‘ of industrialization.
In Gujarat, new factory setup by automobile related companies targeting Suzuki and Honda 2 wheeler shall depict ‘growing phase‘ and by around 2021, reaching to the full
production capacity by both companies, investment by new companies shall show down and subject region shall be in ‘steady growth phase’. Below are forecast data based on
above assumption.
Note: *NIC(National Industrial Classification 2008) Codes 3 Digit Data:291,292,293,221,231,272,274,309.
Companies having 100 or more workers & all factories covered under Joint Returns are included by ASI Data.
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
Source: Draft Revised Regional Plan 2021 NCR,2013 Report, Gujarat Water
Summit-2014, DMICDC Report,2015, Sub Regional Plan for Haryana Sub-
Region of NCR-2021,2010 Report.
Summary:Future demand in water and traffic in Gujarat
In future, water demand is expected to increase along with the continuous strong industrial growth in Gujarat.
There is steady growth of overall traffic and remarkable increase in percentage of freight vehicles traffic on major roads from
Ahmedabad - subject area - major ports.
Analyzing the past data, proportion of freight vehicles traffic is high on Haryana’s NH-71 connected with Industrial cluster.
Similarly, proportion of freight vehicles traffic on major roads shall increase within the subject area.(refer page24)
Water Demand [Million m3/day]
Water Demand
Traffic Volume
Annual Average Daily Traffic
[Vehs/d]
Freight Traffic Penetration
[%]
2010* 2015* 2020*
Low
23,611
20,214
18,523
High
Normal
31,333 (+7,722)
26,795 (+6,581)
22,051 (+3,528)
40,841 (+17,230)
34,950 (+14,736)
26,660 (+ 8,137)
52,325 (+28,714)
44,035 (+23,821)
30,839 (+12,316)
Low
45.6%
41.3%
35.3%
High
Normal
47.3% (+1.7%)
42.7% (+1.4%)
35.5% (+0.2%)
48.7% (+3.1%)
43.8% (+2.5%)
35.9% (+0.6%)
51.9% (+6.3%)
45.9% (+4.6%)
36.5% (+1.2%)
2025*
Gujarat State Hwy SH-947 (estimated) National Highway-71
2007 2013
4,183 6,875 (+2,692)
68.0% 67.5% (- 0.5%)
2005 2021*
835
15,826
1,536
18,943
industry
Overall
DELHI NCR Gujarat
2005
5.9
Wh
ole
GJ
MB
SIR
industry
Overall
2010
2040*
95.5
231.5
35,000
2050
57,000
2025
40,000
12
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
13
SH-133
MBSIR Industrial development shall initiate the social
& economic development of the region and shall
require robust infrastructure, connectivity and
transportation system within MBSIR and in
neighboring regions such as Viramgam-Becharji(SH-
7), Becharaji-Mehsana(SH-19),Kadi- Vithalapur(SH-
133) etc to support the residential population,
comminuting employees and managing the increase
in traffic.
In Gujarat Budget 2018-19, has provision of Rs.1346
Crore to strengthen road infrastructure and to make
roads and bridges. This includes Four laning of
Viramgam – Sitapur – Becharaji Road(SH-7).
SH-947
SH-7
SH-19
SH-133
SH-7 is expanding from 10m wide
to 30m wide(90m 8 lane is
proposed)
SH-133 is expanding from 5.5m
wide to 24m wide(60m 6 lane is
proposed)
BECHARAJI
MANDAL
Population Category Yr 2040
Residing Population in
MBSIR755,000
Village Population 26,000
Floating Population 126,000
Total Population
Supported by MBSIR907,000
Population
(907,000 by 2040)Industry &
Commercial Building
Residential-Schools &
Collages
- Professional
Education &
Training
CentreHospitals
+
Recreation, Sports
& Entertainment
Supporting Social Infrastructure
ParksTrain/Bus
Stations
Cluster-A Village Population
6,249 ->11,973
Cluster-B Village Population
7,211 -> 13,817
MISIR Population
(Year 2011->2040)
Mahsana District529,816
BECHARAJI District99,588
KADI District341,407
Viramgam District193,283
100 km150 km200 km250 km
MANDAL District70,346
Source: MBSIR Report Feb 2017,
Census of India 20111 Crore Rs = 10,000,000 Rs
Khoraj
Summary: Road expansion status
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
①Population:State wise population in NCR and Gujarat (Actual)
14
Gujarat population has increased by 9.7m during the decade 2001-2011 and population of 60.4 m for year 2011 depicts 4.9% of the
total India’s population. Similarly, Rajasthan, Haryana and Delhi population has increased by 12.1m,4.2m & 2.9m respectively.
According to Census of India 2001,Gujarat population is projected to be increased by 25.4% from 50.7 million in year 2000-01 to
63.5 million in year 2016-17.
Unit:million
13.9 14.3 14.7 15.1 15.6 16.0 16.5 17.0 17.4 17.918.5
19.0 19.5 20.1 20.7 21.3 21.9
21.1 21.6 22.0 22.5 22.9 23.3 23.7 24.2 24.6 25.025.4 25.9 26.3 26.7 27.1 27.5 27.9
56.5 57.7 58.8 60.0 61.1 62.3 63.4 64.5 65.7 66.8 67.8 68.9 69.9 71.0 72.0 72.9 73.9
50.7 51.6 52.4 53.3 54.1 55.0 55.8 56.6 57.4 58.2 59.0 59.8 60.6 61.3 62.1 62.8 63.5
2.0% 2.0% 2.0% 1.9% 1.9%
1.9% 1.…1.8%
1.8%1.7% 1.7% 1.7% 1.6%
1.6%1.5%
1.5%
0%
1%
1%
2%
2%
3%
0
20
40
60
80
100
120
140
160
180
200
2000-01 2002-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12E
2012-13E
2013-14E
2014-15E
2015-16E
2016-17E
Delhi Haryana Rajasthan Gujarat Gujarat(Growth Rate)
4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 5.0% 5.0% 5.0% 5.0% 4.9%● Gujarat Population Percentage to total India’s Population
2001/2011 Census Forecast
(60.4)
(68.6)
(25.3)
(16.7)
Decadal Growth 2001-2011 : 19.2%
Decadal Growth 2001-2011 : 21.4%
Decadal Growth 2001-2011 : 19.9%
Decadal Growth 2001-2011 : 21%
(+9.7)
(+12.1)
(+4.2)
(+2.9)
(+12.8)
(+17.4)
(+6.7)
(+8.04)
Source: Census of India, 2001 & 2011
(Population change from Census 2001)
(Census 2011 Actual Population)
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
①Population in Gujarat w/ multiple CAGR scenario (Projection)
15
59.0
61.562.3
63.163.8
64.665.3
66.066.7
67.468.0
68.669.3
69.970.6
71.2
72.2
73.2
59.059.8
60.661.3
62.162.8
63.564.2
64.965.5
66.166.8
67.468.0
68.669.3
70.2
71.2
59.059.4
60.160.9
61.662.4
63.163.8
64.465.1
65.766.3
66.967.5
68.168.8
69.7
70.7
57
59
61
63
65
67
69
71
73
75
Gujarat(High) Gujarat(Normal) Gujarat(Low)
Unit : million
CAGR 2005/06 - 2010/11 Gujarat
High Double of Normal Projection 2.8%
Normal Increase Percentage 1.4%
Low Half of Normal Projection 0.7%
*Population till 2026: 2001/2011 Census of India Forecast Population
*Population from 2027 :Based on 2011-15 CAGR
2001/2011 Census Forecast
Gujarat population is projected to reach 71.2m by the year 2028, representing increase of population by 12.2m(+20.7%) from year
2011 to 2028.
Similarly ,in case of higher projection, the population is expected to reach 73.2m by the year 2028, showing increase of population
by 14.2m (24.1%) from year 2011 to 2028. In case of lower projection, the population is expected to reach 70.7m by the year 2028,
showing increase of population by 11.7m (19.8%) from year 2011 to 2028.
Source: Census of India, 2001 & 2011
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
②Factory: State wise population in NCR and Gujarat(Actual)
16
3.3 3.3 3.2 2.9 2.8 2.9 2.9 2.9 2.9 3.0
4.3 4.4 4.7 4.4 4.5
6.0
4.8 4.95.3
6.66.0 6.1 6.3 6.1
6.6
8.27.6 7.9 7.9 8.0
14.1 14.315.1
14.515.3
21.3
17.518.2 18.1 17.9
-
5
10
15
20
25
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Delhi Haryana Rajasthan Gujarat
2014-15
NCR:17,594 Factories
Gujarat :17,884 Factories
Gujarat industrial sectors is dominated by industrial sectors such as petrochemicals, chemicals, pharmaceuticals, cement and
ceramics, dairy, gems & jewellery, textiles.
In 2014/15, Gujarat State had 17,884 registered factories, whereas NCR region(Delhi, Haryana, Rajasthan) all together had 17,594
factories, which shows 290 factories lesser than Gujarat State.
Comparing 2005/06 to 2014/15, number of factories registered in Gujarat increased by 27.4%.
*2005~2007 : Registered Factories(Operational Factories not
included in ASI Survey from 2005 – 2007.
*2008/09 Onwards : Operational Factories data only)
Source: Annual Survey of Industries 2008-2014 Reports
Unit : ‘000
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
17Source: Annual Survey of Industries 2008-2014 Reports
10.0
15.0
20.0
25.0
30.0
35.0
②Factory: Gujarat State factories (Projection)
‘000 unit
Gujarat 10 year forecast of operational factories is based on NCR past data. The projection scenario depicts 37.8% increase in
next 13 years.
Respective increase in growth rate is applied to two phase i.e from 2015/16~2020/21 considered to be ‘growing phase’,
2021/22 - 2026/27 considered to be ‘steady growth phase'. Further, along with ‘growing phase’ and ‘steady growth phase, middle
scenario has also been forecasted as below.
2014/15 Gujarat:
17,884 : actual
Gujarat Registered Factories Growth Rate
37.8% in 13 years
2027/28 Gujarat (Estimate)
31,788 : Highest
24,652 : Normal
19,640 : Lowest
Assumption – Rate of Increase A. 2014/15
- 2020/21
B. 2020/21
- 2027/28
High A.CAGR: 2008/09 - 2011/12 @GJ
B. CAGR: 2008/09 - 2011/12 @HR6.50% 3.20%
NormalA. CAGR: 2008/09 - 2014/15 @GJ
B. CAGR: 2011/12 - 2014/15 @RJ3.50% 1.65%
Low A.CAGR: 2011/12 - 2014/15 @GJ
B. CAGR: 2011/12 - 2014/15 @GJ0.70% 0.70%
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
②Factory: State wise employment in NCR and Gujarat(Actual)
13 13 13 13 12 12 12 12 11 12
40 43
51
61 58
55 58 57
61
74
29 31
37 35 39
43 47
44 47 49
88.8
98.4
104.5
112.6115.9
129.5
138.4 136.4 137.3
146.2
-
20
40
60
80
100
120
140
160
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Delhi Haryana Rajasthan Gujarat
In 2014/15, number of person engaged in factories in Gujarat State was approx.1.4m. Whereas NCR
region(Delhi, Haryana, Rajasthan) all together had approx.1.3m persons, which shows around 10,000 persons
lesser than Gujarat State.
Comparing 2005/06 to 2014/15, number of person engaged in factories in Gujarat increased by 64.8%.
Source: Annual Survey of Industries 2008-2014 Reports18
Unit: million
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
100.0
150.0
200.0
250.0
300.0
19
‘0000 employee
2014/15 Gujarat:
1,462,206 : actual
Gujarat Employment Growth Rate
48.5% in 13 years
②Factory: Gujarat State employment generation(Projection)
Source: Annual Survey of Industries 2008-2014 Reports
Similar to operational factory data, Gujarat 10 year forecast of employment generation is based on NCR past data.
Respective increase growth rate is applied to two phase i.e from 2015/16~2020/21 considered to be ‘growing phase’,2021/22 -
2026/27 considered to be ‘steady growth phase'.
The projection scenario depicts 48.5% increase in next 13 years.
2027/28 Gujarat (Estimate)
2,611,853 : Highest
2,171,184 : Normal
1,494,459 : Lowest
Assumption – Rate of Increase A. 2014/15
- 2020/21
B. 2020/21
- 2027/28
High A. CAGR:2005/06 - 2008/09 @GJ
B. CAGR: 2011/12 - 2014/15 @GJ 8.25% 1.85%
NormalA. CAGR: 2005/06 - 2014/15 @GJ
B. CAGR: 2011/12 - 2014/15 @RJ 5.70% 0.90%
Low A. CAGR: 2011/12 - 2014/15 @GJ
B. CAGR: 2008/09 - 2011/12 @HR 1.85% -1.40%
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
②Factory: State wise electricity consumption in NCR and Gujarat(Actual)
Unit : Th.Kwh
855,2
18
870,7
36
688,3
92
746,5
25
886,8
41
793,4
52
945,3
53
3,5
28,4
22
4,0
18,8
25
5,3
43,1
48
4,6
31,9
60
5,4
15,5
26
6,2
99,2
45
6,8
07,6
23
5,5
37,4
74
5,8
91,0
01
8,8
65,8
99
7,5
99,3
36
8,9
26,4
60
9,0
10,9
67
9,1
55,6
72
13,5
61,8
57
14,0
16,4
36
15,0
90,4
81
19,1
13,6
16
21,1
33,3
13
23,3
46,2
25
25,1
08,4
65
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Delhi Haryana Rajasthan Gujarat
As increase in number of factories in Gujarat, the consumption of electricity has been steadily increasing over
the period of time.
Comparing 2008/09 to 2014/15, Electricity consumed in 2014/15 has increased by appox.85%.
Source: Annual Survey of Industries 2008-2014 Reports20
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
20.0
40.0
60.0
80.0
100.0
21
Million MWh
2014/15 Gujarat:25,108,465 MWh : actual
②Factory: Gujarat State electricity consumption(Projection)
Source: Annual Survey of Industries 2008-2014 Reports
Similar to operational factory data, Gujarat 10 year forecast of electricity consumption is based on NCR past electricity
consumption data.
Respective increase growth rate is applied to two phase i.e from 2015/16~2020/21 considered to be ‘growing phase’,2021/22 -
2026/27 considered to be ‘steady growth phase'.
The projection scenario depicts less than 3 times steep increase in next 13 years.
Gujarat Electricity Consumption Growth
2.86 times in 13 years
2027/28 Gujarat(Estimate)
92,542,197 MWh : Highest
71,721,625 MWh : Normal
54,714,632 MWh : Lowest
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
⑤NCR Water Demand 2005 & 2021
22
NCR Region Total Water Supply(MCM/Year) 2005
States Domestic Industrial Agriculture Total
Haryana 227 68 4,929 5,224
Rajasthan 17 4 1,855 1,876
NCT-Delhi 1,586 331 366 2,283
1,830 403 7,150 9,383
NCR Region Total Water Demand(MCM/Year) 2005
States Domestic Industrial Agriculture Fire Fight Total
Haryana 460 14 8,662 5 9,141
Rajasthan 122 26 4,098 1 4,247
NCT-Delhi 1,588 795 - 5 2,438
2,170 835 12,769 11 15,826
NCR Region Total Water Demand(MCM/Year) 2021 Water
Deficit
in 2021States Domestic Industrial Agriculture Total
Haryana 789 286 8,700 9,775 -4,551
Rajasthan 194 80 4,249 4,523 - 2,647
NCT-Delhi 1,268 1,170 - 2,438 -115
2,251 1,536 13,223 18,943 -9,560
In 2005, Industrial water demand in Haryana was 14 MCM/Year,
which is predicted to increase by 20 times to 286 MCM/Year by year
2021.
Source: Draft Revised Regional Plan 2021 NCR,2013 Report Gujarat Water Summit-2014
MCM: Million cubic meter
BCM : Billion cubic meter
3540
57
0
10
20
30
40
50
60
FY2010 FY2025 FY2050
Gujarat Water Demand Projection(2014)BCM
NCR
*Gujarat Water Summit-2014
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
NCR Region:
Delhi, Haryana,
Rajasthan etc
23
MBSIR Total Water Demand(MLD/Year) 2040
NO# Land Use Category Cluster A Cluster B
1. Industrial Area 42.77 14.28
2. Logistics 4.93 4.5
Knowledge & IT 16.59 0
3. Population(Resident) 62.87 42.56
4. Population(Floating) 3.38 2.29
5. Recreation, Sports & Entertainment 0.82 0.06
6. Fire Fighting 3.72 2.52
7 Sub-Total (MLD) 135.08 66.21
8 15% Water Loss 20.26 9.93
9 Total Demand with Loss(MLD) 155.34 76.14
10 Total Water Demand in A & B 231.48
Present and Future Water Demand GAP (MLD/Year) 2040
ClusterWater Demand
(Present)
Future Water
Demand GAP(MLD)
Cluster A 5.442 155.34 149.9
Cluster B 0.43 76.14 75.71
Total MLD 5.872 231.48 225.6
⑤MBSIR Water Demand 2005 & 2021
Source: : MBSIR Report Feb 2017.
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
Average Annual Growth rate on National Highway-8
(Kherki Daula Toll Plaza (42 Km)
Year Car Bus Truck MAV LCVTotal
Traffic
Traffic
Growth
Rate(%)
Freight
Traffic
(%)
Freight
Traffic
Growth
Rate
(%)
2007 22,860 2,863 8,679 1,517 6,529 42,448 - 39.40% -
2013 23,814 2,566 8,884 2,739 12,047 50,050 17.91% 47.29% 41.52%
Growth Rate
(2007-2013)0.68 -1.81 0.39 10.35 10.75 - - - -
Average Annual Growth Rate on National Highway-71
Year Car Bus2-3 Axle
TruckMAV LCV
Total
Traffic
Traffic
Growth
Rate(%)
Freight
Traffic
(%)
Freight
Traffic
Growth
Rate
(%)
2007 1,197 140 2,043 638 165 4,183 - 68.04% -
2013 2,002 236 1,803 1,600 1,234 6,875 64.36% 67.45% 62.93%
Growth Rate
(2007-2013)8.95 9.11 -2.06 16.56 39.85 - - - -
NH-8 Traffic Data from year 2007 to 2013 indicates:
High annual growth of commercial goods vehicles for MAV 10.35% and
LCV 10.75%
Passenger vehicles have shown minor growth and traffic is almost
similar to in year 2007 & 2013.
Traffic Data from year 2007 to 2013 indicates:
High annual growth of commercial goods vehicles for MAV 16.56% and
LCV 39.85%. 2-3 Axle Trucks has shown negative growth rate.
Passenger vehicles and public transport vehicles(Bus) have shown
8.95% and 9.11% growth respectively.
MAV : Multi-Axle Vehicles
LCV : Light Commercial Vehicle
National Highways – NH-8 and NH-71
NH-8NH-71
Delhi
⑥Traffic Data
Source: DMICDC Report,2015,
Sub Regional Plan for Haryana Sub-Region of NCR-2021,2010 Report. 24
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
RoadLocation
No#Section Locations
Passenger Vehicles Freight Vehicles Total
Vehicle
Total
PCUs2W Autos Car/Taxi Mini Bus Bus LCV HCV MAV
National Highways
NH-8 ▲1 Delhi – GurgaonDundahera Toll
Plaza (24 Km)80,526 1,889 2,62,121 ,1,150 7,305 9,897 8,632 2,772 3,74,292 3,80,912
Old NH-8 ▲10 Delhi – Gurgaon Kapashera 16,657 1,840 20,698 262 2,043 1,804 1,212 118 44,634 66,220
NH-8 ▲3 Delhi – JaipurKherki Daula Toll
Plaza (42 Km)10,615 3,323 23,517 5,169 2,223 11,307 9,675 2,533 68,363 1,01,371
NH-8 ▲4 Kukrola –Kakaoria Bilaspur 62 Km 4,589 150 18,968 2,840 1,661 6,626 11,011 3,866 49,712 89,606
NH-8 8 Delhi – JaipurShahjahanpur Toll
Plaza(117 Km)3,785 108 7,206 1,087 1,172 2,719 7,563 5,805 29,445 66,702
NH-71 7 Rewari - Bawal Bhanwari 5,872 1,839 3,210 750 380 515 662 345 13,572 14,184
NH-71 ▲5 Jhajjar - Rewari Chandpur 3,133 250 1,971 517 206 881 1,804 1,739 10,500 19,478
NH-71 B 6 Rewari-Dharuhera Near Rewari Town 11,366 1,877 5,041 731 580 321 273 227 20,417 17,394
NH-71 B 2 Taoru - Daruhera Bhiduwas 2,645 262 1,549 430 31 830 3,776 699 10,223 19,376
NH -236 11 Delhi-Gurgaon MG Road 31,326 234 66,305 384 1,052 2,224 3,082 45 1,04,652 98,312
State Highway
SH-26 9 Patudi – Rewari Nurpur Village 3,142 203 1,521 449 85 274 383 237 6,294 6,625
SH-26 3 Rewari -Pithrawas RajpuraIstamrar 4,543 732 2,918 954 452 377 1,156 444 11,574 14,259SH-26 7 Wajirpur - Pataudi Jatloa 3,425 303 1,672 413 114 407 357 210 6,903 7,075SH-13 8 Gurgaon - Sohna Bhondsi 10,244 1,519 10,126 972 657 1,108 3,753 658 29,037 35,592SH-52 1 Bawal - Mundawar Tihara 3,852 159 559 235 112 114 65 240 5,334 4,658
Other Major Roads
Gharhi bolni
Road2 Rewari - Chhuriawas Dhaliawas 4,619 505 2,296 483 175 150 243 336 8,807 8,582
Rewari
Mahenderga
rh Road
4 Rewari - Mundi Aaliawas 4,104 436 1,852 750 189 226 72 295 7,924 7,539
MDR 5 Rauhrai - Jatusana Katopuri 1,499 53 750 281 54 234 709 200 3,778 5,368
Rewari lokri
Road6 Pataudi - Rewari Meerpur 1,791 41 214 143 15 44 32 68 2,348 1,805
AADT : Average Annual Daily Traffic
PCUs : Passenger Car Units
NH-8 Dundahera Toll Plaza (24 Km) from Delhi-Gurgaon: has observed AADT with 3,74,292 vehicles (3,80,912 PCUs), followed by Kherki Daula Toll
Plaza (42 Km) from Delhi – Jaipur with 68,363 vehicles (1,01,371 PCUs). Highest AADT at NH-8 Dundahera Toll Plaza (Km 24) is due to following
reasons:
Additional intra Gurgaon traffic volume
High amount of traffic interaction between industrial areas of Manesar and residential areas of Gurgaon and Delhi.
NH-8 Bilaspur Toll Plaza(62 Km) from Kukrola –Kakaoria has observed as 49,712 vehicles (89,606PCUs) followed by Old NH-8 (Kapashera) from
Delhi – Gurgaon with 44,634 vehicles (66,220 PCUs).
DMICDC Report 2015, Primary survey 2013
⑥Vehicle Category wise Average Annual Daily Traffic on Major Road Sections
Source: DMICDC Report,2015.25
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
⑥Vehicle Category wise Average Annual Daily Traffic on Major Road Sections
2626
NH-8 ▲1
▲10
▲3
▲4
Dundahera Toll
Plaza (24 Km)
Delhi – Gurgaon
Old NH-8
Delhi – Gurgaon
Kherki Daula
Toll
Plaza (42 Km)Bilaspur (62 Km)
Kukrola –Kakaoria
Delhi
To Jaipur
Rewari
Jhajjar
▲5NH-71
Jhajjar - Rewari
▲7NH-7
Rewari - BawalBawal
TVC : Traffic Volume Count Survey Source: DMICDC Report,2015.
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
⑥Ahmedabad - Viramgam Vehicle Category wise Average Annual Daily Traffic on Major Road Sections
27
Average Daily Volume(ADT in VEHs)
Roa
d
Locatio
nSection
Passenger Vehicles Freight VehiclesAgriculture
VehiclesSlow Vehicles Others
ADT
(Vehicles)2W
Auto
Ricksha
w
Car/
Jeep(
Old
Tech)
Car/
Jeep
(New
Tech)
Mini
Bus
Standa
rd Bus
LCV/
Tempo
2-Axle
Trucks
3 Axle
Trucks
M-Axle
Truck
Tractor
s with
Trailer
s
Tractor
s
without
Trailer
s
CycleCycle
Ricksh
aw
Animal
Drawn
Vehicl
es
Others
SH
947○
Ahmeda
bad-
Viramga
m Road
3,911 2,137 512 2,680 261 929 2,022 3,650 2,174 595 399 296 706 109 103 39 20,823
Annual Average Daily Volume(AADT in VEHs)
Roa
d
Locatio
nSection
Passenger Vehicles Freight VehiclesAgriculture
VehiclesSlow Vehicles Others
AADT
(Vehicl
es)
AADT
(PCU)2W
Auto
Ricksha
w
Car/Je
ep(Old
Tech)
Car/Jee
p
(New
Tech)
Mini
Bus
Standa
rd Bus
LCV/
Tempo
2-Axle
Trucks
3 Axle
Trucks
M-Axle
Truck
Tractor
s with
Trailer
s
Tractor
s
without
Trailer
s
Cycle
Cycle
Ricksh
aw
Animal
Drawn
Vehicl
es
Others
SH
947○
Ahmeda
bad-
Viramga
m Road
3,520 1,924 460 2,412 505 836 1,820 3,285 1,956 535 359 267 635 98 93 35 18,740 34,421
Traffic Composition 18.8% 10.3% 2.5% 12.9% 2.7% 4.5% 9.7% 17.5% 10.4% 2.9% 1.9% 1.4% 3.4% 0.5% 0.5% 0.2% 100%
SH-7
SH-947
SH-7 is expanding from
10m wide to 30m wide
(90m 8 lane is proposed)
SH-133
SH-133 is expanding from
5.5m wide to 24m wide
(60m 6 lane is proposed)
SH-947 Ahemedabad – Sanad – Viramgam has observed AADT with 18,740 vehicles and freight vehicles dominates traffic volume by 40.5%.
High freight vehicles are due concentration of industries of various sectors like automobile (TATA, Ford & automobile components suppliers), FMCG consumer products
(Nivea,Inbisco), heavy engineering products(Alstom), Steel products(Mitsui Kinzoku,Baosteel) and chemical manufactures etc in Sanand I & II Industrial Estates.
AADT : Average Annual Daily Traffic
PCUs : Passenger Car Units
Source:
Gujarat State Road Development Corporation,2003 Report(Survey Data:2001)Integrated Mobility Plan for Greater Ahmedabad Region Report
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
⑥Ahmedabad - Viramgam Vehicle Category wise Average Annual Daily Traffic on Major Road Sections
28
Ahmedabad - Viramgam - Projected Average Daily Volume(ADT in VEHs) by Alternative Consideration
RoadSec
tionYear
Passenger Vehicles Freight VehiclesAgricultural
Vehicles Slow Vehicles
AADT
(Vehicl
es)
Traffic
Growth
Rate(%
)
Freight
Traffic
(%)
Freight
Traffic
Growth
Rate
(%)
AADT
(PCU2W
Auto
Ricksh
aw
Car/Je
ep
(Old
Tech)
Car/Je
ep
(New
Tech)
Mini
Bus
Standa
rd Bus
LCV/
Tempo
2-Axle
Trucks
3 Axle
Trucks
M-Axle
Truck
Tractor
s with
Trailers
Tractor
s
without
Trailers
CycleCycle
Ricksh
aw
Animal
Drawn
Vehicle
s
Others
SH
-94
7 A
hm
ed
abad-V
iram
gam
Ro
ad
Hig
her
Gro
wth
2010 4,789 2,268 543 3,045 564 978 2,229 4,226 2,583 723 419 311 699 101 95 40 23,611 - 41.3 - 43,236
2015 6,717 2,786 667 4,075 638 1,162 2,872 5,790 3,657 1,052 507 367 787 104 98 46 31,333 32.71 42.7 36.98 57,538
2020 8,989 3,422 819 5,454 708 1,347 3,631 7,748 5,034 1,490 605 449 886 107 101 53 40,841 30.35 43.8 33.89 75,322
2025 11,472 4,064 973 6,964 785 1,561 4,590 10,369 6,930 2,109 722 536 978 110 104 60 52,325 28.12 45.9 34.04 98,212
No
rma
l G
row
th
2010 2,771 1,195 983 3,058 761 1,343 1,554 4,564 2,397 703 193 130 500 20 10 34 20,214 - 45.6 - 40,184
2015 3,887 1,468 1,207 4,092 859 1,595 2,002 6,253 3,385 1,024 233 157 563 20 11 39 26,795 32.56 47.3 37.38 53,663
2020 5,201 1,804 1,483 5,476 953 1,849 2,531 8,368 4,660 1,449 278 187 634 21 11 45 34,950 30.43 48.7 34.30 70,468
2025 6,638 2,142 1,761 6,989 1,058 2,144 3,200 11,198 6,415 2,052 332 223 700 21 11 51 44,035 25.99 51.9 34.44 92,245
Lo
w G
row
th
2010 4,377 2,160 403 2,114 427 719 1,580 2,758 1,638 461 400 297 686 100 95 38 18,253 - 35.3 - 31,283
2015 5,560 2,497 475 2,596 472 825 1,889 3,339 2,024 579 458 340 754 103 97 42 22,051 20.81 35.5 21.66 37,477
2020 6,830 2,886 585 3,305 527 959 2,322 4,058 2,476 728 519 385 829 105 99 47 26,660 20.90 35.9 22.39 45,092
2025 8,112 3,257 677 3,789 557 1,046 2,629 4,756 2,985 884 587 436 898 107 100 51 30,839 15.68 36.5 17.42 52,213
* Projected Traffic data is based on System of systems Method with no imposition of road user charges assumption)
Haryana
Average Annual Growth rate on National Highway-8
(Kherki Daula Toll Plaza (42 Km)
Year Car Bus Truck MAV LCVTotal
Traffic
Traffic
Growth
Rate(
%)
Freight
Traffic
(%)
Freight
Traffic
Growth
Rate
(%)
2007 22,860 2,863 8,679 1,517 6,529 42,448 - 39.40
2013 23,814 2,566 8,884 2,739 12,047 50,050 17.91 47.29 41.52
Growth
Rate
(2007-
2013)
0.68 -1.81 0.39 10.35 10.75 - - - -
Average Annual Growth Rate on National Highway-71
Year Car Bus2-3 Axle
TruckMAV LCV
Total
Traffic
Traffic
Growth
Rate(%)
Freight
Traffic
(%)
Freight
Traffic
Growth
Rate
(%)
2007 1,197 140 2,043 638 165 4,183 - 68.04 -
2013 2,002 236 1,803 1,600 1,234 6,875 64.36 67.45 62.93
Growth
Rate
(2007-
2013)
8.95 9.11 -2.06 16.56 39.85
In future, SH-947 Ahmedabad – Sanand – Viramgam traffic volume will be significantly dominated by freight vehicles due
to develoment of new industrial estates like Khoraj (Sanand-III,Mandal & Becharaji region) and potential of investment by
new automobile component manufacturers in same region.Further, this road also connects to major ports in Gujarat State.
Source: Gujarat State Road Development
Corporation,2003 Report(Survey Data:2001)
AADT : Average Annual Daily Traffic
PCUs : Passenger Car Units
2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization
29
2.2 Smart infrastructure requirement
30
Smart Infrastructure for further development
2.2 Smart infrastructure requirement
As per interviews among 1) GJ government, 2) Operation Japanese company in S.M.B., 3) Industrial Service
providers, we identified below services and infrastructures for further development of the area
6 Focus areas identified during study
Required services and
infrastructuresFuture demand Details
Industrial estate Japanese Industrial Estate
The number of industrial parks, both GIDC and private owned, in SMB area is
limited. In order to accelerate FDI from Japan and support investment by Japanese
companies in future, there is further need and demand for Japanese industrial
parks.
Mobility and Security
Distributed energy networkSmart Energy
Although Electricity generation in Gujarat is surplus and Power situation is better compared
to many other Indian states, considering Indian Govt.’s impetus towards Electric Vehicles, a
eco-friendly system of virtual power plants utilizing Electric Vehicles (EV) is proposed to
reduce dependency of fossil fuels.
Traffic information platform
Due to limited coverage by public transport, companies arrange means of
transportation for workers and companies deal with issues such as traffic accidents
and security. Safe, secure & eco friendly transportation system is desirable.
Water Treatment
Freight railway networkLogistics
Automobile production capacity is expected to expand very rapidly in future in
S.M.B. region. Appreciate Gujarat Govt.’s efforts in widening the road situation in
S.M.B. area. However, depending entirely on trailers for transportation of cars is
inefficient and enhanced system using both rail & road freight system is necessary.
Centralized Water treatment
system
According to Gujarat’s Zero discharge regulation, currently, localized waste water treatment
by various industries is preferable. With higher number of factories becoming operational,
investments by Japanese companies with state of the art Waste water treatment
technologies that offer centralized waste water treatment services in S.M.B. is desirable.
Vocational training instituteIndustrial Human Resources
At S.M.B., around 200,000 skilled resources will be needed for just the automobile
industry. To meet the huge demand, in addition to programs conducted by Japan
India Institute of Manufacturing (JIM), further complementary efforts are required.
31
Japanese Industrial Estate with high-level services
Source: METI report in 2016
2.2 Smart infrastructure requirement
31
Enhancing Japanese FDI by creating Japanese Industrial Estate with high-level services
Japanese Industrial Estate with high-level services Services provided by Industrial estate in other countries
Hybrid infrastructure land
development
More
attractive to
Japanese
Investors
Concept:
Development of infrastructure and estates with
Attractive (or cost effective) functions
For example, Ready-built Factory, Japan Desk,
Common infrastructure (Water treatment, energy
management system), Business development
support, Employ support, hotels and incentives
Benefit:
With soft and hard infrastructure, it would become
competitive estate for investors
Services provided by Industrial estate
Vietnam Indonesia
EstateName
Japanese SMEs Center
Thang Long Industrial Park
Japanese SMEs Center
Daiwa Manunggal
industrial park
AreaDong NaiProvince
Hung Yen Province
Jakarta Bekasi
JapaneseJapan Desk
◎ ◎ ◎ ◎
Customoffice
Inside Inside Inside Inside
Transportation service
◎ ◎ ◎ ◎
Single windowBusiness service(admin, approvalsupport, incorporation)
Single windowBusiness service(admin, approvalsupport, incorporation)
Single windowBusiness service(admin, approvalsupport, incorporation)
Single windowBusiness service(admin, approvalsupport, incorporation)
Other serivces
CommonCafeteria
◎ ◎ ◎ ◎
Residence ◎ ◎ ◎ ◎
TrainginVocational training
center(Local Government)
Vocational training center
(private company)
Vocational training center
(private company)
Vocational training center
(private company)
CONCEPT:
Connected grid system to reduce the loss of energy with
• Metering device to measure exact Demand and Supply
• Storage infrastructure to balance Demand-Supply gap
• Software to balance the demand, supply & storage on grid level
• Small scale power generation & storage by utilizing EVs & VPPs
Requires Smart Integrated Power Grid – Connecting EVs to Virtual Power Plant (Power generation and
Storage) for efficient energy utilization.
State-of-the-art efficient energy system aligned with EVs and renewable energy policies of government.
“Connected Power Grid” as a countermeasure
Smart Integrated Power Grid
BENEFIT:
• Flexible to accommodate with future increasing demand instead of depend on costly larger scale power generation plants.
• Eco-friendly and sustainable concept.
Public
Transport
(LRT, BRT)
Renewable
Energy
(PV etc.)
Industrial ParkResidence
School
HospitalRetail
Office
Smart Meter +EMS
Distributed
Energy
Network
Smart Meter+EMS
EV
Station
EV
Station
Renewable
Energy
(PV etc.)
Main Grid
VPP - Virtual Power Plant
Such as Rooftop PVs
India plans many
Mega-class PVs
2.2 Smart infrastructure requirement
32Source : Compiled by Mizuho Bank Ltd, based on NIKKEN SEKKEI
RESEARCH INSTITUTE Report
33
CONCEPT:
• Upgrading ICT-integrated Bus service with wireless devices for each bus to assist drivers
• Ticketing or Fare-collection system (IC or cellular phone connection)
• Software to optimize operation by analyzing commuters data
ICT for Bus Rapid Transit – Upgrading BTR system by used of ICT system
ICT utilization beyond BRT as mode of cash less payment technology throughout the city.
“Bus Rapid Transit” as a countermeasure
ICT for Bus Rapid Transit
BENEFIT:
• Increasing reliability and punctuality by optimization BTR operation.
• Promoting utilization of public transportation system is considered to be eco-friendly and shall contribute to environmental issues.
• In addition to IC utilization in BRT or Metro, encouraging broader applicability through employee ID, shopping in town.
1ST Downtown 3 min delayed
2ND Downtown 10 min on time
Mobile (NFC)Transit IC
Data Collection
for multiple use
Passenger information system
(Status Update)
BRT Drivers
Management
Automated Ticket Gate
(Automated Toll Collection)
Operation Optimization
e.g. Headway Optimization
$ $ $
Daily Use
(Payment by Transit IC)
2.2 Smart infrastructure requirement
Source : Created by Mizuho Bank Ltd,
34
CONCEPT:
• CCTV capture and recognize all people within its range
• Software automatically identify name and gender with integrated database
• Alert on blacklisted / unrecognized people observation
Face Recognition CCTVs – State-of-the-art system to provide security within the region.
Enhancement of security for increasing population of subject area
“Face Recognition CCTV” as a countermeasure
Face Recognition CCTVs
BENEFIT:
• Security function for enhancing safe environment for investing companies and new residents.
?
xxx CITY POLICE DEPT.
Surveillance Cameras
ALART: STREET 024, City Centre
STATUS: identified
NAME: xxx yyy
AGE: zz
Crime History:
EXIST (twice)
?
??
Identified:
BBB CCC, Lawyer
Identified:
DDD FFF, Bank Worker
Identified:
xxx yyy
STREET 024
Monitor Room
Connected
Simultaneously
2.2 Smart infrastructure requirement
Source : Mizuho Bank Ltd,
2.2 Smart infrastructure requirement
35
CONCEPT: Introduce freight trains through the subject area (Already have plans for extending 2 lines)
• High capacity (1 train = approx. 50-100 Large CVs)
• Launch of scheduled, punctual services provided
Expansion of Freight Tracks to subject regions for speedy and high volume
Infrastructure development of subject region for One-stop services to access major cities like DELHI and MUMBAI
“Freight Trains” as a countermeasure
Freight Trains logistic hub
BENEFIT:
• Improvement in network as a result of DMIC & DFC connection and simultaneously increase in attractiveness of subject region among investing
companies.
• Government investment in DFC (Dedicated Freight Corridor) may make freight trains dominant in the near future
Depot
Depot
Port Export
Present situation of Japan Railway Freight Transportation
• Railway Track 200,000 km(2016,Average Freight Volume 300t approx.)
• Covering all major cities with 24hrs within Tokyo(Freight Station - Osaka 7hrs,Fukuoka 17,Sapporo 23hrs)
• 30mins above delay rate is 5.6% (2015FY).This rate is extremely low rate considering heavy snow in winters.
Source : Created by Mizuho Bank Ltd, based on NIKKEN SEKKEI
RESEARCH INSTITUTE Report
36
CONCEPT:
• Depending on the current circumstance(effluent standard, recycling, budget, space etc.), proposal to establishment best possible waste water
treatment method .
• Encourage water reuse to ensure stable supply of water (In line with “zero-discharge policy”.)
Gujarat is considered to be highly concerned with environmental issues and industries have cost burden
for waste water treatment.
Establishing common efficient Waste Water Centralized Treatment Plant to address environmental issues
and reducing cost burden of investing companies.
“Waste Water Solution” as a countermeasure
Waste Water Solution
BENEFIT:
• Solution towards respective states environmental regulation and deploying water treatment plant at industrial park development stage to reduce
risk of delay & discontinuing operations.
• Reduce cost and minimizing time from land allotment to operations due to environment issues.
Factory, Residential etc.
Effluent
Treatment
Treated Discharge
Utilization within Factory,
Residential area etc.,
Gardening etc.Water re-use
Water Supply
2.2 Smart infrastructure requirement
Source : Created by Mizuho Bank Ltd, based on NIKKEN SEKKEI
RESEARCH INSTITUTE Report
37
CONCEPT:
• However, at present with support of present Japanese(JIM) and Gujarat government the stakeholders are involved in human resource
development , but to address future industrial human resources requirements, various education institutes etc. shall be required other than
individual companies.
• Introducing Alumni database for matching companies and human resources and promoting weekday working & weekend leaning technical
education.
Employment in auto sector is expected to reach approx. 20 million by the year 2030 in subject region.
Requires industrial workers training for addressing needs of new investing companies and expanding
production.
“Education Institute” as a countermeasure
Education Institute (Vocational Training for Make in India area)
BENEFIT:
Increase in investing companies and Elimination of bottle neck faced by investing companies of Encourage mid- or small-sized company to enter
subject area (i.e. promotion of “MAKE in INDIA”)
Contribute to the sustainable growth of subject region
• ONLY large companies
operate (small)
educational institute
• middle or small firms find
difficult to hire appropriate
employee
Alumni Database
3rd party-operated
education institute
promote MAKE in INDIA
by encouraging middle- or
small-sized company to
establish plants in India.
2.2 Smart infrastructure requirement
Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
38
2.3 FDI potential from Japan
Area Population
7 million
OEMs (Capacity)
3 OEMs ( 1.2 million)
Number of Suppliers
(T1&2) 250+
Auto Related Employee
120,000+ *state total
S.M.B. 2022
Area Population
5.5 million
OEMs (Capacity)
7 OEMs (1.2 million)
Number of Suppliers
(T1&2) 400
Auto Related Employee
271,000* state total
Pune (2015)
Area Population
8.5 million
OEMs (Capacity)
1 OEMs (0.3 million)
Number of Suppliers
(T1&2) -
Auto Related Employee
100,000 *state total
Bangalore (2015)
Area Population
4.6 million
OEMs (Capacity)
7 OEMs (1.4 million)
Number of Suppliers
(T1&T2) 200
Auto Related Employee
311,000 *state total
Chennai (2015)
Area Population
20 million
OEMs (Capacity)
2 OEMs (1.7 million)
Number of Suppliers
(T1) 400, (T2)2000
Auto Related Employee
304,000 *4 states total
Delhi NCR(2015)
Area Population
20 million
OEMs (Capacity)
18 OEMs (3.1 million)
Number of Suppliers
(T1) 462, (T2)1,137
Auto Related Employee
525,000
Bangkok (2015)
Area Population
7.6 million
OEMs (Capacity)
27 OEMs(1.2 million)
Number of Suppliers
(T1) 200, (T2)441
Auto Related Employee
709,000*
Selangor + KL
(2015)
S.M.B is predicted to be the largest automobile cluster in the world with 2 million 4 wheeler production.
2.3 FDI potential from Japan
39
Area Population
(0.5 + 5.5) million
OEMs (Capacity)
3 OEMs ( 0.7 million)
Number of Suppliers
(T1&2) 50
Auto Related Employee
62,000 *state total
S.M.B. 2016
*For OEM
And Suppliers
Penag are is
Included.
Area Population
8 million (30% up)
OEMs (Capacity)
4 OEMs ( 2.0 million)
Number of Suppliers
(T1&2) 500+
Auto Related Employee
200,000+ *state total
S.M.B. 2030
S.M.B.(Sanand,Mandal,Becharaji)
Source: Compiled by Mizuho Bank,Ltd based on Annual Survey of Industries of
India, , Automobile association in Thailand and Malaysia, Census of India 2011Note: ASI Data includes *NIC(National Industrial Classification 2008) Codes 3 Digit Data:291,292,293,221,231,272,274,309.
Companies having 100 or more workers & all factories covered under Joint Returns are included by ASI Data.
40
Japanese companies consider India as one of the most prospective markets.
・in mid-term: 2nd prospective, following China
・in long-term: 1st prospective
Most Japanese companies are going to expand their businesses in India in 1-2 years.
Japanese Companies Focusing More on Indian Market
2.3 FDI potential from Japan
0
10
20
30
40
50
60
70
80
90
08年度 09年度 10年度 11年度 12年度 13年度 14年度 15年度 16年度 17年度
得票率(%)
中国 インド インドネシア タイ
ベトナム ブラジル ロシア 米国
Which countries do you see as prospective markets
in mid-term (~3 years)
Which countries do you see as prospective markets
in long-term (~10 years)
FY2014 FY2015 FY2016 FY2017
1 India India India India
2 China Indonesia China China
3 Indonesia China Indonesia Vietnam
4 Brasil Indonesia Vietnam Indonesia
5 Thailand Thailand Thailand Thailand
6 Vietnam Brasil Mexico USA
7 Myanmar Myanmar Myanmar Myanmar
8 Russia Mexico USA Mexico
9 Mexico USA Brasil Brasil
10 USA Russia Phillipines Phillipines
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Source : JBIC
Reason of FDIIndia
Indonesia China Thailand Vietnam2017 2016 2015
Future market size 85.5% 85.2% 88.9% 85.2% 68.5% 50.0% 71.2%
Current market size 36.3% 28.7% 32.7% 34.5% 61.4% 32.9% 15.3%
Labor cost 31.6% 30.9% 31.0% 33.1% 14.2% 23.7% 50.3%
As supply chai 24.4% 20.6% 24.6% 18.3% 26.9% 24.3% 12.9%
Talent and Human resource 15.5% 11.7% 10.5% 5.6% 11.2% 13.8% 19.0%
Exporting hub 11.9% 12.1% 12.3% 12.0% 10.7% 29.6% 18.4%
Industrial Cluster 9.3% 11.2% 9.4% 14.1% 22.3% 24.3% 7.4%
Infrastructure 0.5% 1.8% 1.2% 4.2% 13.7% 23.0% 6.1%
Reason of investment from Japan
41
For India entry, nearly 90% answered “Market potential” as a top reason
Labor cost and current market size follows
Reasons of market entry
2.3 FDI potential from Japan
Source : JBIC
-10.0
-5.0
0.0
5.0
10.0
15.0
中国 インド
日本 米国
EU ASEAN-5
サハラ以南アフリカ
42
India kept a one of the highest GDP growth among the world
In 2008 there was rapid increase in FDI from Japan and kept high level in the following years
FDI from Japan to India
-10.0
-5.0
0.0
5.0
10.0
15.0
中国 インド
日本 米国
EU ASEAN-5
サハラ以南アフリカ
GDP growth
Lehman crisis
FDI from Japan to India
1,506
5,551
3,664
2,864
2,3262,802
2,1552,408
-1,176
3,690
1,060
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
2008年:第一三共による
ランバクシー買収
(約4,900億円)
2009年:NTTドコモによる
TTSL株式取得
(約2,600億円)2010年:JFEスチール
によるJSWスチール
への出資
(約900億円)
(百万USD)
第一三共がランバクシー株を売却
(速報)
NTTドコモがTTSL株を売却(仲裁裁定金)
Actual ← →Projection
2.3 FDI potential from Japan
China
Japan
EU
Sub-Saharan Africa
India
USA
ASEAN-5 Mil USD
FY2008:Daiichi
Sankyo to Ranbaxy
(490 billion yen)
FY2008:Daiichi
Sankyo to Ranbaxy
(490 billion yen)
FY2008:Daiichi
Sankyo to
Ranbaxy
(490 billion yen)
Daiichi Sankyo sold Ranbaxy
Equity
NTT Docomo sold TTSL equity
Source : JETROSource :IMF “World Economic Outlook October 2017”
43
Around 100 new entities are established in India every year.
Establishing more than one bases in India
After 2014, there is steep increase in regional offices/branches due to M&A in Financial sector &
transportation sector.
Japanese companies in India
2.3 FDI potential from Japan
Number of Japanese companies in India Sectorial share
Source: Japan Embassy
4,838 Regional Office/Branches(As of 2017 Oct)
Regional Offices/ Branches
Electronics
Automobiles
Other Manufacturing
Banking & Financial
Companies
Manufa
cturing
34.1%
Agricultural Mining & Construction
Chemical & Pharmaceuticals
Metal & Non Metal
Machinery
IT & ITS
Trading & Retailing
Other Service
Operation of Japanese companies in India
Business expansion plan India
Ratio of expansion in India
is highest among 20 countries
44
45.8
53.0
50.5
53.6
61.4
17.7
14.9
18.6
15.1
14.8
36.5
32.1
30.9
31.4
23.8
2013
2014
2015
2016
2017
黒字 均衡 赤字
48.1 52.3 48.4 51.3 55.4
26.6 30.8 36.1 32.3
32.8
25.4 17.0 15.5 16.4 11.8
2013 2014 2015 2016 2017
改善 横ばい 悪化
63.1 65.0 66.0 62.4 64.7
30.4 28.3 29.2 30.0 29.1
6.5 6.8 4.8 7.6 6.2
2013 2014 2015 2016 2017
改善 横ばい 悪化
II. Profitability projectionI. Profitability actual
Profitability shown the highest in last 10 years
Profitability of Japanese companies is increasing in India
72.1%
64.2%
58.3%
51.3%
50.7%
45.3%
67.5%
59.2%
49.5%
52.6%
51.1%
51.6%
70.3%
63.5%
48.0%
57.1%
48.5%
52.5%
従業員の賃金上昇
競合相手の台頭
従業員の質
税務(法人税、移転価格課税など)の負担
品質管理の難しさ
原材料・部品の現地調達の難しさ
2017
2016
2015
Labor cost increase is the top issue for operation
Local procurement improves
Procurement trend
Local procurement of Japanese companies is increasing
In India (55.9% in FY2017)
32.2 28.8 31.5
24.5 23.3
12.1 9.9 8.7 9.8 9.2
7.7 6.0 4.9 4.4 4.8
4.7 7.1 6.9 7.2 6.8
2013 2014 2015 2016 2017
現地調達 日本 ASEAN 中国 その他外国
インド(アジア・オセアニア
20カ国平均)
2014 78.2% 56.3% 20.0% 0.7% 0.2%
2015 74.7% 51.2% 23.3% 2.0% 0.0%
2016 70.7% 52.2% 27.6% 1.7% 0.0%
2017 69.6% 53.7% 27.9% 2.2% 0.3%
現状維持 縮小 移転・撤退拡大
2.3 FDI potential from Japan
Profit expectation Issues for operation
Profitability (comparison to previous year)
Source : JBIC
Profit no profit
/ no lossloss
Better Stable Worse Better Stable Worse
Stable Shrink Closing
Expansion
Asia &
OceaniaIndia
Labor cost rise
Competition
Labor quality
Tax relate issue and cost
Manufacturing quality
Local procurement
India Japan ChinaOther
countriesASEAN
45
NCR, Chennai and Bangalore is automobile cluster and having more than 300 bases of Japanese companies for each
Japanese Companies in India
2.3 FDI potential from Japan
2009/10 2017/10
Basement : 1,049 4,838(361% up)
Companies : 627 1,369 (118% up)
Gurgaon(97 →438 )Maruti, HMSI, Denso, Panasonic, Asahi Glass, JFE Steel, Cannon, YKK<
Toshiba, Softbank, Rohto Pharma, KOSE, Kameda and etc
Mumbai (150 → 373)コKokuyo, Sumitomo Chemical. NYK, Omron, Muji, Wacol, Nippon Paper
Pune(56 → 205)Yazaki, Sharp, Bridgestone, Mitsubishi Electric, Nipro, GS Yuasa, Fukoku,
Mitsuba, Kuroda eclectics, Tsubakimoto chain, TBK, Polite, Sumitomo
Heavy, Eagle, Marubeni-Itochu Steel and etc.
Neemrana(11 → 38)Oji Paper, Nidec, Daikin, Unicharm, Dainichi Color, Mitsui Chemical, Toyota
Gosei and etc
Bangalore (121 → 425)Toyota, HMSI, Seiko Epson, Tokai Rika, Seiko watch, Yasukawa,
Yokogawa, Mitsubishi Electrics, Bando Chemical, TMEIC and ets
Ahmedabad (31→145)Suzuki Motor Gujarat, HMSI, Hitachi Hi-rel, Mitsubishi Aluminum, ROKI,
Toyota tsusho, Unicharm and etc
Delhi (142→331)Yakult, Mitsui Chemicals, Furukawa Sangyo, Hitachi, KHI,
Yokohama Rubber, Nippon Steel Corporation, Nippon Steel
Trading, Kazokutei etc
Noida (38 → 88)Honda, Yamaha Motor, Yanmar, Nichia, Nissin
Electric, Kobelco Construction Machinery, Nissin etc
Kolkata (46 →136)DIC, Kubota, Shinsho, Kobelco, Hitachi Construction
Machinery, Kurosaki Harima, Isuzu Trading(Paint &
Coatings) etc
Chennai (149→372)Nissan, Yamaha motor, Toshiba, Komatsu, Koito, Unipress,
NTN, Fujite, Ajinomoto, Yamaha music and etc.
Hyderabad (28 →117 )Toshiba, Fuji oil, Nipro, Nippon, Nichino, Tomoe, Nagoya
electrics, Daicel, Mitsubishi Corporation and etc.
Bangalore and Chennaioccupies approx 20%
Sri City (0→ 16)Metal one, Kobelco Craine, Unicharm, Isuzu, NHK springs,
Kusakabe and etc
NCR occupies approx 20%
Source:Embassy of Japan in India
46
In NCR, Number of operation start increased at the point of 750,000 and 1,000,000 annual four wheeler production
Increase of factories of Japanese companies in NCR
2.3 FDI potential from Japan
About 750,000 four wheeler
production, Number of factory
establishment increased.
Number of factory established is based on 195 Japanese companies in Gurgaon,Manesar,Bawal,and Neemrana area.
,000 unit
of productionAbout 1,000,000 four wheeler
production, Number of factory
establishment increased.
Source: public news and corporate news
2016ACTUAL
2006ACTUAL
IP/SEZ/SIR - Available
IP/SEZ/SIR - Occupied↓ to MUMBAI
↓ to AHMEDABAD
MUMBAI
NH48
Delhi – Ajmer
Hwy.
47
Number of Japanese Companies – 2006 to 2016 in DELHI NCR
Maruti Suzuki 1st Plant
Maruti Suzuki 2nd
Plant
Honda car 1st Plant
Yaklut
Honda Motorcycle
MAHINDRA
World City
Neemrana ph.3
* for Japanese
Companies
Ghilot
※for Japanese Companies
Jhajjar
Kotputli
Bahadurgarh
Tapukara -
Chopanki
Rai
IMT Manesar
IMT Faridabad
Greater NoidaYamaha
YKK, Asahi Glass, Nissin
Yamaha
Daikin, Unicharm,
Nidec, Toyota,
Kundri
Suzuki Motorcycle 2nd
Plant
Barhi
Panipat
Rohtak
Panasonic, Denso
410
85 19
306
37238
280
29978
NH48
Bawal
Dharuhera
Indira Gandhi
International Airport
Honda Motorcycle
Honda car 2nd Plant
DELHI
NH34
NH9
NH9
NH9
Source:Embassy of Japan in India
2.3 FDI potential from Japan
48
Estimated Number of Japanese Companies – 2016 to 2030 in GUJARAT
IP/SEZ/SIR - Available
IP/SEZ/SIR - Occupied
Sardar Vallabhbhai Patel
International Airport
AHMEDABAD
Mundra SEZ
P. Mundra
P. Kandla
Kandla SEZ
Mandal
* for Japanese companies
Mitsubishi Aluminum,
Toyota TsushoMitsubishi Heavy Industries
P. Surat
P. Dahej
Dahej SEZ
DIC、Toyo inkSakata Ink
Sayakha
Hazira SEZ
MHI
Halol ph.2
TOTO、SAIC
Sanand ph.2
TATA
Motors
(nano
Plants)
Ford, Hitachi, Unicharm
2016ACTUAL
2030ESTIMATED
Jhonson Hitachi
Kadi
NH47 Ahmedabad – Rajkot
Hwy.
NH27
NH27
NH48 Ahmedabad – Vadorada
Expwy.
NH48
Sanand ph.3
4 85+
Suzuki Motor Gujarat
Honda Motorcycles ↑ to DELHI
↓ to MUMBAI
Dholera SIR
145 350+
22 40+
Source:Mizuho Bank Projection & Embassy of Japan in India
2.3 FDI potential from Japan
49
Automobile sector is most promising in S. M. B. area by 2030
2.3 FDI potential from Japan
Sector Potential Trend in the area Expected number of Japanese factory
Automobile
◎
Four wheeler production capacity in the are
is expected to be 1.34 million in 2020 and
2.19 million in 2030.
Major tier 1(400 companies) & 2 (2000
companies) supplier of automobile may start
production in this area.
100 - 150
Railway
○
Mumbai – Ahmedabad high speed railway
project will start from 2018 and may open in
2023.
As this is based on Japanese E5
Shikansen, related manufacturer may start
Make in India.
10 - 20
Electronics
○
There is already a factory of
Japanese AC brand nearby the area.
Other electronics and related
supplier (motor / compressor) may
come in to the area.
10 - 20
FMCG
○
Major Japanese FMCG player will start
operation in SanandⅡ.
Related material supplier (chemical,
material, metal) may start local production
along with the major player.
5 - 10
Source:Mizuho Bank Projection & Embassy of Japan in India
50
2.4 Issues & Proposed Solutions of the Targeted Japanese Investment Area
(SIR framework, Initiatives by Gujarat for Investment, Infrastructure Development)
51
①SIR Act: Overview
2.4 Issues & Proposed Ideas for the Targeted Japanese Investment Area (SIR framework, Initiatives by Gujarat for Investment, Infrastructure Development)
Gujarat enacted SIR Act in 2009 to develop Investment
Regions in Gujarat with World class infrastructure by
conferring powers to Regional Development Authority.
13 Special Investment Regions have been planned.
Master Plans prepared by Regional Development
Authority (RDA) for 7 of the 13 SIRs.
No. Name of SIR Status Remarks
1 Dholera Notified 920km2, more details follow
2 PCPIR Notified 453km2, Petroleum related
3 Halol – Savil Notified 123km2, Engineering
4 Santalpur Notified 186km2, Agriculture
5 Navlakhi Notified 182km2, Engineering
6 Aliyabet Notified 169km2, Entertainment
7Mandal -
BecharajiNotified
*Currently being developed
under Dholera SIR, more
details follow
8 Viramgam Proposed 301km2, Automotive
9 Changodar Proposed 319km2, Agriculture, Metals
10 Anjar Proposed 237km2, Port Related
11 Okla Proposed 206km2, Pharmaceuticals
12 Pipavav Proposed 147km2, Logistics
13 Simar Proposed 83km2, Cement
Source: Compiled by Mizuho Bank using data from gidb.org, dholerasir.com
“Gujarat Special Investment Region Act 2009” enacted by Govt. of Gujarat is the legislation for establishment, operation, regulation
and management of large size Investment Regions with an area of over 100 sq kms.
13 Special Investment Regions identified by Gujarat and Dholera SIR is also designated as an Early Bird Project of DMIC
Outline of Special Investment Region Act Details of SIRs
*Salient Points of
SIR Act
GIDB(Apex Authority)
has been conferred
upon all the powers
(regulations, approvals
etc.)
・RDA formed for each
SIR is the development
Authority
*RDA is responsible
for Land Acquisition
・Investment Region
Size – more than
100 Sq. Km.
・Industrial Area Size –
more than 50 Sq. Km.
52
①SIR Act: Overview of Dholera SIR
Dholera SIR is identified as an Early Bird Project of DMIC.
Total Investment of INR 1 Trillion expected and majority of Infrastructure to be developed in PPP mode
Outline of Dholera SIR
City Level Development SPV - Dholera Industrial City
Development Limited DICDL formed and Govt. of India holds
49%
Dholera SIR, about 100 km south of Ahmedabad, is identified
as an Early Bird Project of DMIC. Metro, New Airport,
Connectivity with Dedicated Freight Corridor are being
planned. At the City level SPV, Govt. of India (Central Govt.)
has holds 49% ownership and Govt. of Gujarat (State Govt.)
holds 51% ownership.
Master Plan of Dholera SIR
・Targeted Development Area:920km2(Area consists of 22 Villages)
・Connectivity:6-lane roads, Metro, Railways, Connectivity with DFC
・Others: Proposed Dholera Airport (Environmental Clearance done)
・Industries:Defense, Aviation, Electrical & Electronics, Pharmaceuticals,
Heavy Engineering, Automotive, Agriculture & Food Processing, Metals
・Town Planning Scheme(Gujarat Town Planning Scheme 1976)
・5600Acres to be open in 2019. Project expected to complete in 2030.
・State of the art & environmentally friendly technologies such as CETP to be
introduced
・L&T selected as EPC Contractor & has begun construction of basic
infrastructure.
・Activation Area of 22km2 would have Plug & Play Infrastructure
*Govt. of Gujarat in the Budget for 2018-19
has provisioned INR 2.8 Billion for
Development of Dholera SIR.
Source: Compiled by Mizuho Bank using data from dicdl.in, dholerasir.com
2.4 Issues & Proposed Ideas for the Targeted Japanese Investment Area (SIR framework, Initiatives by Gujarat for Investment, Infrastructure Development)
53
① SIR Act: MBSIR – 1. Overview
Source:MB SIR draft plan
MBSIR’s Population estimated at 700,000 by 2040 as per the Final Master Plan submitted in Mar 2016
Currently, according to details in Final Master Plan, detailed planning & Environmental Clearances are being
carried out.
Current Situation of the Target Region Final Master Plan of Target Region *As on Jun 2016
Area: 102km2
Population : 13,460 (Year 2011)
Employment:
No. of Villages: 8
Targeted Area for Development: Reduced From 526km2 to 102km2
Road Connectivity:
SH7(4lanes,10m wide→ 30m wide expansion -ongoing )
SH133(5.5m~10m wide→24m wide expansion – ongoing )
Electricity: Supplied by Uttar Gujarat Vij Company Limited
Water: Supplied by GWSSB (From Zinzuwada Branch Canal -
18MLD)
Waste Water Disposal: No (Sewerage and storm water
infrastructure)
Gas: Supplied by GSPL every time, Gas Pipeline not available
Telecom Service Providers: BSNL, Reliance, Airtel
Education: 14 Schools (Primary: 10 Schools, Middle: 4 Schools)
No Presence of High Schools, Universities, Training Institutes
Hospitals : 5 Small Clinics
Public Transport : Regular service operated by
GSRTC(State Owned) in SH 7
Development Vision:
To develop a smart industrial city with concept of reduce,
recycle and efficient transportation network
Area:102km2
Population : 7,29,200(Year 2040) Daytime Population of 9,11,500
(Population of Existing 8 Villages expected to be increased further
by12,000 by 2040)
Employment: 3,04,500 (Direct: 1,25,000, Indirect1,79,500)
Road Connectivity: SH7 (90m wide 8 lane road)
SH133(60m Expansion)Electricity: Power Source for expected 464MWh demand is not available
Water: 231.48MLD required (118 MLD from Recycled or
Narmada Main Canal)
Waste Water Disposal: No (Sewerage and storm water infrastructure)
Gas: 225.598MLD
Telecom Service Providers: BSNL, Reliance, Airtel
Education: MoUD Guidelines (based on Population, Area),
Kindergarden 50 Schools, Primary: 25 Schools, Middle: 20 Schools,
Training Institutes - 2 Institutes, Universities – 2 Universities
Hospitals: 59 including Small Clinics
Fire Station: 4, Police Station: 2, Police Assistance Booth: 4
Public Transport: Apart from connectivity with neighboring areas,
Connectivity with Railway Stations mentioned.
2.4 Issues & Proposed Ideas for the Targeted Japanese Investment Area (SIR framework, Initiatives by Gujarat for Investment, Infrastructure Development)
54
①SIR Act: MBSIR – 2. Development Plan & Visualization of Neighborhood
SH 7 connecting MBSIR is proposed as an 8 lane road (Currently, the10m wide road is being expanded to a 30m
wide road)
North – South SH 7, 8 lanes, 90m wide
Roads within the
region to be 45m or
60m wide
BRT planned within
the region
(Currently 4 lanes,
10m wide→ 30m wide expansion – ongoing )
SH133, 6 lanes, 60m wide
(Currently,
5.5~10m wide → 24m wide
expansion ongoing)
Visualization of Neighborhood
Suzuki
Honda
Mandal
Land Use Category Area (ha)
Industrial 2,858 28.0%Logistics 210 2.1%Mixed Use and High Access Corridor 1,322 12.9%Residential 3,513 34.4%Knowledge & IT 369 3.6%Recreation, Sports, etc. 782 7.7%Road, etc. 1,156 11.3%Total 10,210
Category wise Development Plan
2.4 Issues & Proposed Ideas for the Targeted Japanese Investment Area (SIR framework, Initiatives by Gujarat for Investment, Infrastructure Development)
Source:MB SIR draft plan
55
①SIR system: MBSIR - 3. Development situation and development cost
Development cost 111.99 billion rupees (about 200 billion yen)
Development planned for SPV, PPP model (SPV for MBSIR development is not being constructed)
Development costDevelopment status
20
09
-2
01
72
01
8-
・Master planning
・Negotiations with residents
・Acquisition of GIDB approval
・Development of basic infrastructure
・Master plan completed
・Negotiation with resident over
Approval expected
by May 2018
According to the master plan of MB SIR, the development
cost of the infrastructure part is estimated to be about 200
billion yen .
The project is currently in the stage of obtaining GIDB's
approval, and is scheduled to be completed around May
2018. Development of basic infrastructure is planned
thereafter.Unit: INR 10
Million
Roads 5352
Shared Utility 47
Water Supply 670
Water Treatment 1382
Storm Water 1871
Flood Measures 110
Electricity 1518
ICT 142
Canal 18
Others 90
Total 11199
2.4 Issues & Proposed Ideas for the Targeted Japanese Investment Area (SIR framework, Initiatives by Gujarat for Investment, Infrastructure Development)
Source:MB SIR draft plan
56
①SIR Authority:Tasks
The SIR system was launched in 2009, but it has not yet reached planned goal
The main reasons are (1) the difficulty of land acquisition, (2) absence of anchor investment
Difficulties with land acquisition in SIR Absence of Anchor investment
Method of Land acquisition:Land acquisition on SIR act、① Create project proposal for target area
②Window for comments from public
③Land Pooling is performed *Only allowance of land
*Ahmedabad and Surat used the same method
* The AP state government's new capital city also using same method
Issues:・一Until the development of land, no monetary benefit to land owner
*一Government provides guarantee but during the period agricultural
activities or sale of land is not possible.
*Land acquisition law of 2013 provides 4 times compensation of market
price, which is more attractive.
・MBSIR was initially planned with area of 500 square KM (44 village ) but
due to problems during land acquisition , its reduced to100 square KM (8
villages)
・ For the development of Green Field, companies and people can
not be expected to accumulate at a stage when no independent
development companies (Private developers) and anchor companies
(OEMs like Suzuki in Gurgaon, and Ford in Chennai, etc.) are
present
・ Slow land acquisition and perceived higher cost of the PPP is seen
as hindrance for private players participation.
Gujarat State government is under consideration of following policies
・ Increase subsidy from 15% of project cost to 20% for PPP
・ The concession period can be extended to more than 35 years
35% to 50% of the land is acquired, and then government
develops the land. After development, when the land price rises,
landowners sell the remaining holdings at the increased rates
2.4 Issues & Proposed Ideas for the Targeted Japanese Investment Area (SIR framework, Initiatives by Gujarat for Investment, Infrastructure Development)
Source:public news
57
②Issues and initiatives by government: Gujarat State Government's efforts to develop industries
Source:http://imd-gujarat.gov.in/Document/2016-4-19_704.pdf
Gujarat state investment promotion policy : Gujarat Industrial policy 2015
Gujarat state government vision:’Gujarat’ as a globally competitive and innovative industrial destination that stimulates sustainable
development & promotes inclusive growth
Main strategies for achieving growth:- Accelerating Development of Infrastructure
- Encouraging labour-intensive industries
- Focus approach for industrially under-developed Areas
- Strengthen sector-specific skills and promote vocational skills
- Strengthen specific sectors approach
- Strengthening collaboration between Industries and Universities
- Support in technology up-gradation and research & development
- Promote trade facilitation & e-governance
- MAKE in INDIA campaign
- Conducive Labour reforms
2.4 Issues & Proposed Ideas for the Targeted Japanese Investment Area (SIR framework, Initiatives by Gujarat for Investment, Infrastructure Development)
58
②Issues and initiatives by State government:Overview of Gujarat Industrial policy 2015
Policy for industrial development Details
Inclusive growth and development • Focus on regional development
Improving investment environment • Strengthen single window system, simplify administrative procedures
• Establish CCIPM(Chief Ministers’ Cabinet Committee for Industrial Policy and Monitoring)
Investment promotion measures • Development of sufficient infrastructure to be a global base of manufacturing industry
• Utilization of DMIC (Delhi Mumbai Industrial Corridor) and SIR (Special Investment region)
• Promotion of Large / Mega project
• Promoting balanced regional development (introduction of non-polluting industries, utilization of existing strengths
and resources of the state, promotion of cluster development, promotion of food processing industry, promotion of
value added industry, promotion of labour-intensive industry, Promotion of the IT and electronics industry,
promotion of port related industries, promotion of non-conventional energy, promotion of female and young
entrepreneurs)
Centre of excellence, encourage sector
wise specialization of skills
• Nurture of skilled human resources, expansion of training centre in GIDC Estate, promote of Anchor institute
• Skill development Institutions with market driven curriculum for sector specific skill development
Making Institutions more efficient for
Industrial development
• Establishment of trade promotion centre, investor support system
• Development of sector specialized type industrial zone
• Land identification and aggregation for a Public Land Bank
• Development of web portal for business operators
• Land acquisition support by GIDC and establishment of special investment area (SIR)
• Establishing a session/forum to regularly discuss issues of businesses
• Making environment compliance procedure easier
Adoption of new technology and
promotion of innovation and technology
transfer
• Encourage Start-ups, innovations and R&D.
• Improve competitiveness of SMEs
Infrastructure development • Improvement of industrial infrastructure (improvement of industrial estates, support for private industrial parks, etc.)
• FSI review of GIDC Industrial Park
• Provide efficient logistics service
• Improve connectivity with remote areas
• Encourage establishment of private industrial park
Improving power supply • Increasing power production to meet demand
Others • Sick enterprise revitalization, encouragement of service sector, promotion of holistic development
• Development of green infrastructure.
Source:http://imd-gujarat.gov.in/Document/2016-4-19_704.pdf
2.4 Issues & Proposed Ideas for the Targeted Japanese Investment Area (SIR framework, Initiatives by Gujarat for Investment, Infrastructure Development)
59
Main problems faced by companies entering Gujarat
Human Resource
• Substantial improvement is requirement to generate quality labour pool. Current level
lacks that in resource comparison to Chennai or Gurgaon .
• Education Standards of ITI(Vocational training schools ) needs to be revamped
drastically.
• High attrition rate among skilled worker, requires better social infrastructure.
System
• Multiple licences, approvals and unclear procedure (Judgement differs for each officer,
no detailed policy driven mechanism)
• Although a specialized agency (iNDEXTb) is provided as a single window, it has only
inquiry function and does not have authority 。
Soft In
frastru
ctu
re
• Labour and work related regulations should be flexible.
• Applications are made to State office as well as MBSIR, it takes time and twice the
human resource.
②Issues and initiatives by State government:target areas
Source:compiled by Mizuho Bank from my interviews with industry
2.4 Issues & Proposed Ideas for the Targeted Japanese Investment Area (SIR framework, Initiatives by Gujarat for Investment, Infrastructure Development)
60
Social Infra
• Scant availability of cosmopolitan food and beverages makes life of expats difficult.
• Major concern regarding security. In the area, instead of rural hubs, it should be considered as
Industrial hubs and policies conducive to the area shall be placed.
Industrial Land
• With expansion of capacity of Suzuki factory, expansion of many enterprise is expected, but, lack
of suitable land and industrial parks is concern.
Roads• National Highways are well maintained but state highways near Mandal-Bechajji (Home to
factories of Suzuki and Honda two wheelers) are poorly maintained, narrow and frequently
flooded during rainy seasons
Hard
Infra
stru
ctu
re
• Ahmedabad to Mandal takes 2 hours, making the commute vey difficult.
• Houses, Schools, Hospitals etc are required to attract senior employees.
• Better Transportation is required between factories and near by residential areas.
• Environmental regulations within Gujarat are strict and it is necessary for each tenant company to
deal with it, so we would like to recommend a centralized wastewater treatment system in the
industrial park.
②Issues and initiatives by State government:target areas
Main problems faced by companies entering Gujarat
Source:compiled by Mizuho Bank from my interviews with industry
2.4 Issues & Proposed Ideas for the Targeted Japanese Investment Area (SIR framework, Initiatives by Gujarat for Investment, Infrastructure Development)
61
Most wokers are corrently based in Kadi.
Public transport network has to be better for
their commuting from Kadi to Mandal area.
Securiy is issue as some of our workers are
attached near by Kadi Canal road.
Water piple line is proposed but delayed
due to protestants.
Company BPublic transport is not enough. There is a
huge demand between Sanand 2 and
villages near by.
Company D
Gujarat Governmetn are always
supportive to us, but still we have below
issues.
Local employees are based in Mesana
and Kadi. Ahmedabad is too far for
commuting and there is a huge demand
of residence, good schools and hospitals
near by Mandal –Becharaj area.
Road Connectivity should be improved
between Becharaj and Viragaram.
MBSIR require approvals for each
activities, it should be more easy to
operate and expand facilities.
Railway connectivite has to be done by
the Indian rail. We expect government
support.
Company ACurrently 60% of workers are based in
Mehsana and Kadi. There should be a
good private school as Ahmedabad is too
far for our employee.
Company C
②Issues and initiatives by State government:Some voices from the industry
Source:compiled by Mizuho Bank conducted interviews
2.4 Issues & Proposed Ideas for the Targeted Japanese Investment Area (SIR framework, Initiatives by Gujarat for Investment, Infrastructure Development)
62
2.5 Soft and hard infrastructure requirements for Industrialization and
Prediction of Benefits to Japan Companies
63
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Basic Information : Location of the site
Kandla
Ahmedabad
Kadi
Sanand
Becharaji
75km
50km
Dedicated DMIC
100km
MBSIR
Wide Area Map including current projects (Dholera, DMIC, Kandla Port etc.)
Dholera
Khoraj
Mehsana
75 km
Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
64
Narrow Area Map including current projects (Khoraj, Mandal, Becharaj etc.)
75 km
Kadi75km
50km
25km
Ahmedabad
Sanand
R7
R18
Becharaji
Khoraj
Road Connectivity
Basic Information : Location of the site
Mehsana
Gandhinagar
GIFT
City
R133
R17
Khoraj Industrial Estate
Bol SANAND
Becharaji SIR
Mandal SIR
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
65
Bol SANAND
The India Village Bol, is located in the taluk of Sanand, district of Ahmadabad, in
the State of Gujarat.
• Bol By Rail Chharodi Rail Way Station , Virochannagar Rail Way Station are
the very nearby railway stations to Bol
• How ever Ahmadabad Jn Rail Way Station is major railway station 38 KM near
to Bol Colleges near Bol Sad Guru B
• College Address : Oppisite
• Police Station; Kolat Rd; Sanand 382 110;dist : Ahmadabad Schools in Bol Bol
Primary School Address : bol , sanand , ahmadabad , Gujarat
Colorobbia is having its
plant in the GIDC sanand,
Gujarat State. The
company has production,
Pilot plant, Show room
and laboratories in order
to give support to
the ceramic indian
business in all aspects.
Colorobbia India
Basic Information : Related Planning / Projects
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : GIDC
66
Khoraj Industrial Estate
The main objective of this project is to encourage investment in the estates within
Gujarat Industrial Development Corporation (GIDC), region by implementing world
class infrastructure and also to encourage organizations to set up units in these
zones by giving various subsidies like exemption from stamp duty and registration
fees etc.
In order to boost the investment GIDC is currently working towards providing
excellence in industrial infrastructure focusing on the key infrastructure like power,
road, water supply etc.
Source: Creating World class industrial Infrastructure at
Khoraj
Basic Information : Related Planning / Projects
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : GIDC
67
Mandal Becharaji Special Investment Region (MBSIR)
MBSIR is a government body specially
formulated to develop the planned development
for Mandal Becharaji Special Investment Region.
It takes care of the management, planning of land
resources and infrastructure. MBSIR is a new
industrial hub being planned by the Government
of Gujarat. It is one of its kind industrial hubs and
will comprise automobile, manufacturing and
auxiliary industries. The city is strategically
located, well connected with trade gateways and
falls in the influence zone of proposed Delhi –
Mumbai Industrial Corridor project (DMIC), a joint
initiative by the Government of India and Japan.
DPC worked with MBSIRDA for the preparation
of Development Plan and Town Planning
Schemes.
MBSIR
Basic Information : Related Planning / Projects
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : MBSIR
68
DholeraDholera is strategically located in Gujarat. It is the largest node on
the DMIC and has excellent connectivity by air, land, rail & sea. It
is just 100 km from Ahmedabad and is well connected to other
major cities in Gujarat including Vadodara, Bhavnagar and Rajkot.
• Total Area: 920 Sq. km
• Developable Area: 567.39 Sq. Km
• High Access Corridor: City Center, Industrial, Logistic, Knowledge
& IT, Recreation & Sports, Entertainment
• World-class infrastructure & connectivity: within & outside
• Central spine express way & Metro Rail to link the SIR with mega cities
• Airport & Sea Port in the vicinity
• Proximity to mega cities: Ahmedabad, Bhavnagar, Vadodara
• Benefit of sea coast, nature park, golf course
• Premium civic amenities
• Capable to cater to both International & Domestic Market
• Close to Guajrat International Finance TechCity (GIFT)
• Close to Petro-chemicals and Petroleum Inv. Region (PCPIR)
• Logistic support of the Dedicated Freight Corridor (DMIC)
• Benefits of the high impact Delhi Mumbai Industrial Corridor (DMIC)
Basic Information : Related Planning / Projects
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : Dholera SIR
69
Basic Information : Related Planning / Projects
It is a master plan which is spread over 920 Sq. Km. This beautiful city comprises of the 6 Town Planning Scheme
that will be developed in 3 Phase. The town planning scheme of Dholera SIR is spread into different Zones that
includes Industrial, housing, City Centre, Knowledge and IT Park, Solar Park, Public amenity zone, Sports &
entertainment, Corridor, Greenery, and Agriculture etc. for better development.
Dholera
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : Dholera SIR
70
Basic Information : Related Planning / Projects
Land Use Category Area (ha)
Industrial 636 44.3%Logistics 92 6.4%Mixed Land Use & Commercial 79 5.5%Residential 57 3.9%Knowledge & IT 0 0.0%Green Open Space 64 4.5%Road, etc. 508 35.4%Total 1,436
Land Use Category Area (ha)
Industrial 2,858 28.0%Logistics 210 2.1%Mixed Use and High Access Corridor 1,322 12.9%Residential 3,513 34.4%Knowledge & IT 369 3.6%Recreation, Sports, etc. 782 7.7%Road, etc. 1,156 11.3%Total 10,210
Khoraj MBSIR
Projected Population: 16,741~25,790 (2040)
Land Use Analysis
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : MB SIR and GIDC
71
Basic Information : Current Issues
Advantages ●Abundant electricity, water and well-
maintained infrastructure●A master plan for each district has
already been established
Issues ●Enhancement of road functions,
smooth inter-district cooperation
●Lack of functions for urban life
including residential, school,
hospital etc.
●Lack of human resources in the
surrounding area●Need for industrial diversification
(biased in the automobile industry)
●Traffic congestion in urban area ●Need for more secure urban
infrastructure
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
72
Concept : Promotion of Industrial Smart City making full use of Japanese expertise
Current master plan
concept
Based on the relationship between
Japan and India, advancing
technology and know-how in Japan
Industrial Smart CityCreation of new vitality in GJ
Realization of city for LIFE & WORK
・Local government and other organizations have established master plans for each district, and it has
already been introduced in some areas.
・Based on the concepts of these master plans, we aim for an industrial Smart City with industrial and
residential complex by adding Japanese technology and know-how to the parts to supplement and
expand them.
Complement and
expand the conceptIndustrial
InfrastructureFDI promotion
EnergyEnergy conservation,
effective use of resources
CommunityCommunity formation
,which residence and
retail are combined
MobilityCongestion
mitigation/ ordering
Human ResourcesHuman resources development to
revitalize the region
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
73
Concept : Formation of S.M.B. Industrial Network
MandalSanand
(+Khoraj)
Ahme
daba
d
Industrial
Smart City(Type of living
close to work)
Industrial
Smart City(Industrial type)
Becharaji
S.M.B. Industrial Network
Ahmedabed
Dholera
To Mumbai
Mehsana
Gandhi Nagar
To Delhi
GIFT City
Becharaji
Mandal
Sanand
(+Khoraj)
In collaboration with DMIC (Delhi Mumbai Industrial Corridor), we propose “Sanand-Mandal-Becharaji Industrial
Network” leading the development of Ahmedabad metropolitan area
Mundra
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
Concept : Promotion for smart city utilizing Japanese technology and know-how
EnergyEnergy conservation,
effective use of
resources
CommunityCommunity
formation
MobilityCongestion
mitigation/
ordering
Human ResourcesHuman resources
development to revitalize the
region
① Construction of traffic information platform
② Supply chain network by Freight railway
③ Realization of distributed energy
④ Introduction of water and
environmental systems
⑥ Practice of human resource
development program through
public-private partnership
⑤ Promotion of area management within
region
Mandal Sanand
(+Khoraj)
Ahme
dabad
Becharaji
Covering a network
between areas
Covering in each
industrial area
Industrial
InfrastructureFDI promotion
⑦ Promoting FDI by enhancing
Industrial Infrastructure
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
74Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
75
Solutions : Mobility Construction of traffic information platform
■Congestion mitigation using ICT
■Crime prevention by face authentication camera
・Construct a platform to integrally manage traffic information within each area in Ahmedabad
・Promotion of public transportation, reduction of car traffic and crime by facilitating transfer
■Unifying IC card for facilitation of transfer
IC cards are not unified between
transportation modes. Also, They
have not been used effectively
Unification of IC card specifications
in BRT, Metro and public transit area
Promotion of the use of public
transportation facilitating transfer
Camera installation in station space,
other facilities
Detect criminals by collating with
information database
Crime prevention in public
transportation
Signal disregard at intersection and occurrence of
chronic congestion
Shooting number plate of traffic violation car at
intersection, registration to database
Reduction of signal ignoring and revenue increase for government
Send violation records to individual ICT terminals,
collection of penalty fees on the web
Case: Parking fine, Traffic violation fine payment
service in Bangalore One
Traffic
information
platform
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
76
Solutions : Mobility Supply chain network by freight railway
・Realization of environmentally friendly modal shift corresponding to increasing logistics demand
・Improvement of transportation efficiency and CO2 reduction through joint delivery scheme
■Construction of joint delivery scheme
Traffic jams and environmental burdens are
increasing due to the growing logistics demand
Implement scheduled transportation using joint
delivery scheme
Enhancement of transportation capacity and
promotion of use, reducing carbon emissions
■Image of container freight transportation
BecharajiKandla
Port
Reduction of CO2 from Truck transport
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
77
Solutions : Energy Realization of distributed energy network
・Construct a distributed energy network completed within each area or between areas
・Introduce smart meters and EMS (Energy Management System) using renewable energy at each facility to
promote energy conservation as a whole area
・Set up EV stations in the area and promote EV system for public transportation (LRT, BRT)
Smart meter + EMS
Renewable
energy (PV etc.)
EV station
EV station
Public
transportation
(LRT, BRT, etc.)
Renewable
energy (PV etc.)
Industrial ParkResidence
School, HospitalRetail, Office
Main grid
Distributed
energy network
Deployment image at Khoraj Industrial Estate
Temporary
R17
Distributed
energy network
LRT, BRT
LRT, BRT
PV
PV
EV Station
EV Station
Main energy line
Smart meter + EMS
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
78
Solutions : Energy Introduction of water and environmental systems
・Water purification, waste water treatment and water recycle at each industrial area
・Aiming at cycling use of water resources
■Water Reuse & Recycle System~Stable supply of water and efficient operation of water resources
Factory, housing etc.
Purification
facility
Wastewater
treatment
facility
Drainage
Reuse water tank
utilized for facilities and
plantationRecycled water
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
79
Solutions : Community Promotion of area management by government, corporate and residents
■Regularly hold events
■Development of Living Lab
Lecturer
Product
Companies
Local Community
Feedback
Developm
ent of new
products
■Promotion of Low Carbon
Society~Utilization of local renewable energy and
education on resource reuse etc.
■Local Waste Management
Companies
Regional community
participation
segrega
tion
RecycleWaste
Local
residents
Compan
ies
Governm
ent(GJ, GIDC,
etc.)
・Promote area management, forming comfortable community united companies, government and local residents
・Implementation of Triple-Win structure between three parties
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
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80
Solutions : Human Resources Human resource development through public-private partnership
Before After
Providing basic programs up
to a certain level
(Cooperation of the Japanese
government , AOTS etc.)
In a fixed level or more, each
company offers programs
Each company
individually provides
programs (JIM,
Hitachi, etc.)
〇Small burden on each
company
〇Many employees can
receive the program
△Burden for each company is large
△Limited number of employees
receiving the program
Skill
Level
B C
Potential employee
A B CA
・Develop a human resource program for Japanese companies that promotes human resource abilities and bottom up
・By sharing program offerings by each company, it will increase the number of engineers with fundamental abilities
and contribute to expansion of the supply chain
●Market penetration of
companies like supplier
● Create a database of
graduates → Enclose
between Japanese
companies (prevention
of outflow to other
companies)
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
Water
Traffic
Energy
81
Advanced technologiesSmart infrastructure from Japan
Solutions : Industrial Infrastructure / FDI, Investment Promotion
Hybrid infrastructure
land development
Economic IncentivesInvestment incentives for
better competitiveness among India
Infrastructure with Minimum cost for operation
Hospitality & ManagementJapanese style hospitality and management
World class service in the estates
Japanese
Companies Indian
Companies
Multinational
companies
More FDI
Industrial infrastructure with technology, incentives and management
World class competitive estate attract FDI from not only Japanese but also other local major companies
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
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82
Benefit Analysis : Analysis of methods and benefits for each methods
ISSUES SOLUTIONS METHODS BENEFITS
Energy③ Distributed energynetwork
④ Introduction of water and environmental systems
Management⑤ Promotion ofmanagement within regions
Human Resource⑥ Human resource development program
Congestion mitigation
CO2 reduction
Crime prevention
Tax revenue increase
Congestion mitigation
Shortening of travel time
Facilitating transport
transportation efficiency
Lack of Road function and cooperation between districts
Traffic congestion in urban area
Lack of urban function
Shortage of human resource
Promotion of smart city
policy
CO2 reduction
Energy costsreduction
Stabilized power supply
Energy costsreduction
Job creation
Strengthen competitiveness
Acquire of employment opportunities
Penetrating market / personnel
Renewable energy such as PV
Introduction of EV transport and station
Introduction of smart meter and EMS
Strengthen cooperation in surrounding area
Introduction of basic programs for human resource development
Mobility① Construction of traffic information platform
② Supply chain network by Freight railway
Unifying IC card for facilitation of transfer
Face authentication system to facilities
Congestion mitigation using ICT
Community symbiosis
Fiscal burden reduction
Community strengthening
Communitysymbiosis
Improved CSR
Need for more secure urban infrastructure
Need for industrial diversification
Government Citizens Japanese companies
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
LONG TERM(10yrs+)MEDIUM TERM(5-10yrs)SHORT TERM (-5yrs)
83
Benefit Analysis : Schedule
Energy
Management
Human Resource
Mobility
Sanand Operation / Management
Khoraj Operation / Management
Mandal Becharaj
IC Card
Renewable energy (PV)
EV Station
Smart Meter, EMS
Face Authentication
Congestion Mitigation using ICT
Community Strengthening
Human resource development
Ahmedabad METRO Completed by 2023
Development
Schedule
Water reuse & recycle system
Railway Freight system
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
Mehsana
Becharaji
Ahmedabad
Gandhinagar
84
Appendix : Same-scale for Ahmedabad and Tokyo
Ahmedabad
75 km
Ahmedabad
75km
50km
25km
Tokyo
Saitama
Kawagoe
Yokohama
Yokosuka
Sunto
District
Odawara
Shibuya
75 km
Tokyo
75km
50km
25km
Sagamihara
Nishitama
District
2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies
Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE
85
2.6 Finance for infrastructure improvement
86
2.6.1 Estimated financing method
Capital
increase
Investor
Renter
Japan head
group company·
Existing sharholder
etc.
Local bank
borrowing
Bank of India
Cross border
Bank loan
Indian foreign
financial
institution
Cross-border
Parent-child
loan
Japan head,
group company
Trade
Credits
Bank / Equipment
export
Contractors
Currency
quotationIndian rupee
Use of funds No regulation
Indian rupee
Equipment fund
Costs for
paying for
expense
working capital
Foreign
currency
Indian rupee
Equipment fund
Costs
Foreign
currency
Indian rupee
Equipment fund
Costs
working capital
Foreign
currency
Import
settlement fund
Borrowing
period
Short term or
long term
(Long-term equipment
capital limited)
The average borrowing
period is stipulated
according to the target
ndustry, funded use,
quotation price
Target Industry,
Fund Usage, by
price The average
borrowing period is
It is stipulated
Non capital goods:
Shipping Within 1
year from shipping
Within 5 years
Master Circular on ECB and Trade Credits Scope of application
Methods for financing companies entering the company are: ① Capital increase ② Local bank borrowing ③ Cross border bank loan
④ Cross border parent and child loan ⑤ Trade credit
When procuring funds from overseas, ECB (External Commercial Borrowing) regulation is applied (ECB regulation also applies to non-
convertible type preferred stock)
※ECB rules apply for non-convertible preferred stock
(1)Method of financing in India (corporate finance)
2.6 Finance for infrastructure improvement
Source : Created by Mizuho Bank from RBI sources
87
2.6.1 Assumed Finance Method
For large-scale projects such as re-energy projects and industrial estate development projects, there is also the possibility
of financing utilizing project finance.
As a case example of project finance in India, co-financing of JBIC and MHBC covered solar power generation project in
India conducted by SBG Clean tech Project Co Private Limited, a company funded by SOFTBANK Group . For Mizuho Bank's
loans, insurance coverage by Japan Trade Insurance (NEXI) is insured.
In this project, SBG Cleantech constructed, owned and operated a solar power plant with a total generation capacity of 350
MW at Solar Park, which is established in the Kurunur district of southern India in the state of Andhra Pradesh, India. Over
25 years, the Indian state-owned thermal power utility NTPC Limited)
(2)How to raise funds in India (project finance)
Government
guarantee
Review conditions and issues to receive government
guaranteed bonds (guaranteed principal, interest
payment).
Supplement
rate
Emergency risk 100%
Credit risk 90%
Loan ratio
interest rate
currency
Credit rating
Environmental
and social
considerations
Consistent with the arrangements of the Government
of India and JBIC "International Cooperation Bank
Guidelines for Confirmation of Environmental and
Social Considerations"
Conditions for financing etc.
2.6 Finance for infrastructure improvement
Source : Created by Mizuho Bank from RBI sources
88Source : JICA
2.6.1 Assumed Finance Method
2.6 Finance for infrastructure improvement
(3)JICA’s Gujarat Investment Promotion Program
NO Policy Items Major Policy Actions
1
Enabling GIDC's capacity to develop world class
industrial estates
Develop world-class industrial estates across the state
–Promote sustainability and green initiatives in Industrial development
–Enable ease of doing business by providing quality support and last mile infrastructure
–Companies in GIDC estate can consult various matters with GIDC's satellite office near the area in a timely manner –Development of
a Business Plan for next 5 years for GIDC
–Create a task force group responsible for developing plans that align with the needs of industries.
–Promote sustainable industrial park measures to reduce water, and power intensity in Industrial estates.
–Appointment of relevant officers to the satellite office
2
Single window system for GIDC industrial estates –Enhance Ease of Doing Business in Gujarat by enabling 100% online approvals for set up/ operations/ expansion in GIDC estates
–Integrate application and payment for common user facilities into the online system
–Adopt an online process for disposal of files and
other correspondence
3
Strengthening the Single Window for new investments
in Gujarat
Set up and operationalize a comprehensive single window system
Create an investment monitoring framework
Update and integrate applications on the new single window portal; developing security and online payment capabilities at the same
time
Create an investment monitoring framework to measure the approval timeline
Create a comprehensive database with project profiles, sector reports, country reports etc.
Facilitate grounding of investments in the state
Create a policy research cell in iNDEXTb. Research on industrial climate and recommend improvement areas/sectors. The cell will
provide policy/incentive inputs
Enable private sector participation in infrastructure projects within the State by developing capability to implement PPP projects
Conduct training sessions/trainsfor nominated people to improve skills for structuring and implementation of PPP projects
Develop a project monitoring matrix for monitoring of 5 selected projects
Monitor the selected projects in accordance with the project monitoring matrix
4 Strengthening of iNDEXTb Enhance quality of training institutions in the state, by creating Gujarat Apex Training Institute (GATI)
5
Capacity building of the PPP cell Create a roadmap for an apex training institution in PPP Mode agreeable amongst all stakeholders including private players.
Prepare benchmarking standards for trainers and trainees based on international affiliations
6
Apex Training Institute and Training of Trainers (ToT)
for Skill Development
Perform a state level skill gap analysis & district level skill gap analysis
Identify and implement new models of industry participation in vocational training
Skill certification program –Recognition of Prior Learning
7
Strengthening of Gujarat Skill Development Mission &
Skill Gap Study
Perform a state level skill gap analysis & district level skill gap analysis
Introduce new training trades. Modify existing course curriculums for removal of obsolete training trades.
8Acceleration of infrastructure development Small infrastructure Project Empowered Committee will select the priority projects and allocate budget properly
The administrative departments and implementing
89Source : Join
2.6.1 Assumed Finance Method
2.6 Finance for infrastructure improvement
(4)Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN)
Public inventor fond “JOIN” can be one method for infrastructure development.
JOIN support infrastructure project with joint equity investment and supporting management and negotiation with local
government. Between October 2014 to March 2017, amount of investment is around 200 million USD.
Scheme Investment process
90
Regulation on ECB (External Commercial Borrowing) is based on "Master Circular on ECB and Trade Credits" of Reserve
Bank of India (RBI). In addition to fund procurement from overseas, rules related to trading credits such as buyer's credit
and supplier's credit are also determined Has been done.
"Master Circular on ECB and Trade Credits" is revised by the RBI on July 1 each year (in principle, revised in January and
March 2016).
Master Circular on ECB and Trade Credits
Trade CreditsExternal Commercial Borrowing (ECB)
Buyers Credit Supplies CreditsCross border
Bank loan
Cross-border
Parent-child loan
Importer settles funds
From financial
institutions etc. To
borrow in a foreign
currency
Importer is an
exporter
Defer the
settlement deadline
against
(1)Master Circular on ECB and Trade Credits
2.6.2 Regulation and features of finance in India
2.6 Finance for infrastructure improvement
Source : Created by Mizuho Bank from RBI sources
Foreign Currency Indian Rupee
Track ⅠMedium term borrowing (average borrowing period 3 years or more,
average borrowing period 5 years or more)
Track ⅡLong-term debt (average borrowing over 10
years)
Track ⅢMedium term borrowing (average
borrowing period 3 years or more,
average borrowing period 5 years or
more)
Renter ① International banks ② International capital markets ③ IFC, ADB,
etc. International financial institutions ④ Export credit institutions
(JBIC etc.) ⑤ Equipment exporters ⑥ Foreign shareholders ⑦Overseas long-term institutional investors ⑧ Indian local bank
bases
The left ① ~ ⑦ The left ① ~ ⑦
Borrowing
industry
① Manufacturing ② Software ③ Shipping / airline ④ Company in
SEZ ⑤ Infrastructure related company ⑥ Infrastructure related
nonbank ⑦ Holding company etc. * Change this time: ⑤ 6 ⑦added. However, period, amount of money, hedge restriction is
applied
Industries subject to Track I and REIT etc.
Track Ⅲ target industries and ① non-
bank ② R & D 3 training (excluding
educational institutions) ④ infrastructure
support enterprises ⑤ logistics services
etc.
Use of funds ① Equipment Import Settlement Funding ② Domestic Capital
Goods Purchase ③ New Project ④ Existing Equipment ⑤Overseas JV · Direct Investment of Subsidiary ⑥ Purchase of
Stock Accompanying Privatization of State-owned Enterprises ⑦Trading Traded Credit Refinancing ⑧ Shipping · Imported Capital
Goods Settlement Fund ⑨ Term Previous ECB loan refinancing
without shortening ⑩ Shipping, airline ship / aircraft purchase ⑪Working capital from foreign shareholders (average borrowing
period: 5 years or more)
Adaptable to all funds use except for real
estate, capital market investment, domestic
corporate stock acquisition, sublease funds for
other entities (excluding loans for holding
company's SPV), land purchase
Applicable to all funds use except for real
estate, capital market investment,
investment in domestic companies,
sublease funds for other entities, land
purchase
Non-banks are: (1) subleasing to the
infrastructure sector ② secured loans for
facility funds ③ adaptable for lease asset
purchase fund related to domestic
enterprise capital investment in India
Maximum
interest rate
3 to 5 years: 6 months LIBOR or index rate + 300 bp
More than 5 years: 6 months LIBOR or index rate + 450 bp
Annual rate SP upper limit 500 bp Based on market rate
91
TrackⅠ:①3years for ECB upto USD50M or its equivalent.②5years for ECB beyond USD50M or its equivalent.TrackⅡ10years imespective of the amount.
TrackⅢSame as under TrackⅠ.
* Average borrowing period calculation formula:
Grace period + (Total repayment count -1) / Annual Repayment times × 2
(In case of principal equal repayment)
(Source) Based on RBI document etc. Mizuho Bank International Strategy Information Dept.
Source : Created by Mizuho Bank from RBI sources
2.6.2 Regulation and features of finance in India
2.6 Finance for infrastructure improvement
(2) ECB Detail
92
2.7 Impact on Environment improvement & on society and
Analysis on CO2 reduction
2.7.1 Indian environmental law
93
(1) Law concerning water pollution, air pollution, environmental protection, etc.
In construction and operation of infrastructure development projects, such as industrial park development, and operation in
industrial parks, business operators are obliged to observe the following environmental laws and regulations.
Especially in recent years, citizen's interest in environmental problems has increased and there is a possibility of developing
into an environmental lawsuit against the project, so it is necessary to pay sufficient attention.
Classification Name of laws Outline of laws and regulations
Environmental
law concerning
water pollution
The Water (Prevention and Control Pollution) Act,1974 Established in 1974. It is a law aimed at preventing and restricting water pollution
and improving water quality, regulating standards for water quality and drainage. In
addition to specifying the authority and functions of the central and state pollution
control committee for water pollution prevention regulations, the agreement on the
use of rivers as drains and the provision of drain outlets etc.
The Water (Prevention and Control Pollution) Rules,1975 Established in 1975. Detailed function of Indian Central Pollution Control
Committee (CPCB). Regulation for water analysis at the analytical institution
owned by Indian Central Pollution Control Committee (CPCB)
Environmental
law concerning
air pollution
prevention
The Air (Prevention and Control Pollution) Act,1981 Established in 1981. Act for the prevention, control and reduction of air pollution
law. Provisions the authority of the Indian Central Pollution Control Committee
(CPCB) and the State Pollution Control Committee (SPCB). For example, the State
Pollution Control Committee has been designated the pollution control area and
authorized to restrict industrial activities in that area
The Air (Prevention and Control Pollution) Rules,1982 Established in 1982
Environmental
law concerning
environmental
protection
The Environmental (Protection) Act,1986 Established in 1986. Basic law on environmental protection, prescribing central
government, state authority etc. to prevent, control and reduce environmental
pollution
The Environmental (Protection) Rules,1986 stablished in 1986. It is enacted based on environmental protection law. Regulate
the conditions for installation of factories etc. and emission standards of pollutants
discharged from factories etc.
Forest law Established in 1980. Forest protection law
2.7 Environment Improvement Effect and Social Impact
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
94
(2) Law concerning noise and waste disposal
Classification Name of laws Outline of laws and regulations
Environmental law
concerning The
Noise pollution
prevention
The Noise Pollution(Regulation and
Control)Rules,2000
For noise generated from factory facilities and manufacturing processes,
the level of noise to the surrounding area must be controlled within the
reference value. The reference value is provided as "Quality standard
concerning environmental noise of the atmosphere" in this rule
Environmental law
concerning The
Hazardous and
Other Waste
pollution
prevention
The Hazardous and Other Waste (Management and
Transboundary Movement) Rules, 2016
Regulation on the owner of the facility which handles, discharges, collects,
stores, packs, transports, uses, treats, processes, reuses, regenerates,
prepares, co-processes, utilizes, sells, moves and disposes hazardous
waste. It is necessary to submit a prescribed application form and obtain
permission from the Central Pollution Control Committee (CPCB). In
addition, it is necessary to manage hazardous waste according to specific
rules. The definition of "hazardous waste" is prescribed in the regulations
The Bio-Medical Waste (Management) Rules, 2016 Persons who emit, collect, receive, store, transport, treat, dispose of, and
handle biological medical waste ( hospitals, nursing homes, clinics, clinics,
animal hospitals, animal houses, pathology laboratories, blood banks, etc.)
It is necessary to submit a prescribed application form and obtain
permission from CPCB.
The Municipal Solid Waste (Management & Handling)
Rules, 2010
The State Pollution Control Committee (SPCB) submits an assessment
report on urban waste management to the central government (Ministry of
the Environment, Ministry of Forests) annually.
The Batteries (Management & Handling) Rules, 2001
as amended
Manufacturers / importers relating to the manufacturing process, trading
and use of batteries or parts thereof · repairers · assembler · traders ·
recyclers · auctioneers · consumers · bulk consumers. Submit a
prescribed report on sales and repurchases semi-annually.
The E-Waste (Management) Rules, 2016
Manufacturer · Consumer · Sales · Transfer · Purchase · Collection ·
Storage · Processing Consumer · Recycling Center Distributor · Electronic
retailer · Rebuilder · Recycler. Submit a prescribed application form and
obtain permission from CPCB.
2.7.1 Indian environmental law
2.7 Environment Improvement Effect and Social Impact
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
95
(1) Flow of environmental impact assessment in India
The environmental impact assessment system in India is prescribed by the Environmental Impact Assessment Notification
2006 in accordance with Article 5, Paragraph 3 of the Environmental Protection Act 1986.
Environmental impact assessment is a process for acquiring environmental clearance (EC) required for project
implementation.
The flow of the procedure to enter India is as follows. It is necessary to acquire environmental clearance after land
acquisition and acquire "Consent to Establishment (CTE)" based on the Air Pollution Control Act · Atmospheric Water
Pollution Control Act.
After acquiring CTE, we set up "Consent to Operation (CTO)" by setting discharging amount, exhaust gas, waste
discharging method, waste discharge standard, reuse / recycling condition etc.
2.7.2 India's environmental impact assessment system
Acquis
itio
n o
f
envir
onm
enta
l cle
ara
nce
180/2
25 d
ays
or
more
Perm
issi
on t
o e
stablish
under
the e
nvir
onm
enta
l
law
3 t
o 4
month
s
(targ
et
2 m
onth
s)
Construction
development permission
45 to 60 days
Access to infrastructure
(Electricity, water, gas etc.)
30 to 45 days each
Under the
environmental law
Operation
permission
Under factory
law
Authorization
Under factory
law
Authorization
Dete
rmin
ati
on o
f dest
inati
on
Tax law
AuthorizationRegis
trati
on /
Noti
ficati
on /
Indust
rial
Lic
ense
(as
necess
ary
)
Com
pany e
stablish
ment
/ re
gis
trati
on
(in t
he c
ase
of
not
bein
g e
stablish
ed)
Land a
cquis
itio
n
Perm
issi
on o
n f
ore
ign d
irect
invest
ment
(if
necess
ary
)
Const
ructi
on o
f fa
cto
ries
etc
.
Begin
nin
g o
f opera
tion
2.7 Environment Improvement Effect and Social Impact
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
96
(2) Acquisition of environmental clearance
When implementing projects that may have a significant impact on the environment, it is necessary to acquire environmental
clearance (environmental permission).
In order to implement 8 categories and 39 kinds of projects (newly established, expanded), it is necessary to acquire
environmental clearance.
In project implementation, project proponents of large scale project (Category A) need to obtain environmental clearance of
the Ministry of Environment and Forest (MoEF). Proponents of small and medium-sized projects (category B) will also
receive environmental clearance from the state environmental impact assessment body (SEIAA: Environment Impact
Assessment Authority).
2.7.2 India's environmental impact assessment system
Pro
ject
Pro
ponent
Costal Regulation
Zone Clearance
Under CRZ
Notification
Forest Clearance
Under Forest
(Conservation)Act
1980,amended 1988
Before starting any
activities, obtain the
Enviromental
Clearance as Schedule
of EIA Notification
Befo
re s
tart
ing constr
ucting a
ctivitie
s,o
bta
in
Consent
to E
sta
blis
h(C
TE
)fro
m G
uja
rat
Pollu
tion C
ontr
ol B
oard
On C
om
ple
tio
n o
f pro
duction p
lant
and
EM
S,
apply
fo
r C
ontr
ol B
oard
Category A Project
Obtain EC from
Ministry of
Environment&Forests,
New Delhi
Category B
Project
Obtain EC from
State Level
Environment
Impact
Assessment
Authority, Gujarat
Site Near
Costal
Area
General
Area
Site Near
Forest
Area
Not
covered
Acq
uis
itio
n o
f
en
vir
on
men
tal
cle
ara
nce
2.7 Environment Improvement Effect and Social Impact
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
97
(3) Role of environmental impact assessment agency
2.7.2 India's environmental impact assessment system
Central government State government
MoEF:Ministry of Environment and
Forest
SPCB:State Pollution Control BoardCPCB:Central Pollution Control Board
SEAC:State Expert Appraisal
Committee
EAC:Central Expert Appraisal
Committee
SEIAA:State Environmental Impact
Assessment Agency
Category A projects are assessed for environmental impact by the National Expert Review Committee (EAC: Central Expert
Appraisal Committee).
Projects of category B1 are evaluated by the State Expert Appraisal Committee (SEAC), and environmental clearance is
obtained from the State Environmental Impact Assessment Agency (SEIAA).
The Central Pollution Control Committee (CPCB) and the State Pollution Control Committee (SPCB) are windows of
establishment permit (CTE) and operation permit (CTO).
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
98
(4) Procedures for environmental impact assessment in India
Environmental impact assessment (EIA) is carried out according to the flow below.
① Screening
② Scoping and consideration of alternatives
③ Baseline data collection
④ Impact prediction
⑤ Assessment of alternatives, delineation of
mitigation measures and environmental impact
statement
⑥ Environment Management Plan
⑦ Public hearing
⑧ Decision making
⑨ Monitoring the clearance conditions
Determine whether the proposed project will be subject to environmental clearance. Screening standards
are as follows: ① Scale of Investment ② Type of development project ③ Location area.
Identify the important environmental aspects of the proposed project and consider alternative proposals
for the proposed project.
Collect basic data related to locate project and location area.
Predict the impact on the important environmental aspects (air, water, land, biological, socio-economic)
of the proposed project and alternative plan.
Compare and evaluate environmental aspects of all proposals including alternatives. Study alternate
plans concerning target area and introduction technology and prepare countermeasure proposal.
Based on the results of the impact assessment, prepare draft Environmental Management Plan (EMP) and
Environmental Impact Assessment Report.
We hold public hearings and collect opinions from local residents, environmental NGOs etc. on proposed
project.
Discuss with the environmental impact assessment agency and experts, decide project implementation
and environmental measures, etc.
In both the construction phase and the operation stage of the project, conduct monitoring on predictions
in advance and forecasts of environmental impact and implement corrective measures according to
circumstances.
Source : From the Ministry of the Environment and Forest "EIA Manual", created by Mizuho Information Research Institute
2.7.2 India's environmental impact assessment system
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
99
(5)Projects that require environmental clearance (infrastructure development related)
List of projects that require environmental clearance (infrastructure development project)
Project typeCategory
conditionsA (Central Government Level) B (State Government Level)
Airport All projects. Including runway for commercial
use
― ※Runway that does not have oil storage / lubrication facilities and
air traffic control is excluded
Port (ship anchorage) All projects ―
Industrial park / Export Processing
Zone (EPZ) / Special Economic
Special Zone (SEZs)
When one of the tenant enterprises in the
industrial park falls under category A, the
entire industrial park is treated as category A
Industrial park with area over 500ha. Even
one of the tenant companies falls under
category B
Apply general conditions and specific conditions
※In an industrial estate with an area less than 500 ha, if a
tenant company does not fall under any category of
category A or B, no environmental clearance is required
※In an industrial estate with an area less than 500 ha, if the
construction project is over 20,000 m 2, or the development
area is 50 h or more, subject to environmental clearance
General hazardous waste treatment,
intermediate storage and final
disposal site (TSDF)
Only incineration plants, incineration plants
and landfill disposal facility complex facilities
Landfill site Apply general conditions
Medical waste disposal facility ― All projects
Harbor, breakwater, dredging Cargo handled amount is over 5 million tons
(excluding fishing ports)
A port with less than 5 million tons of cargo
handling volume or a fishing port with catch
more than 10 thousand tons
Apply general conditions
※Including dredging inside and outside the harbor
※For the dredging for the maintenance of the port, an
environmental management plan (EMP) is created and
excluded from environmental clearance when it is included
in projects subject to environmental clearance
Highway New project for the National Highway
And extension of highway of 100 km or more,
road widening of 40 m or more, lane
maintenance of 60 m or more, etc.
New projects for all state highways.
Expansion project of state expressway in hilly
terrain (over 1,000 m above sea level) and
nature conservation area
Apply general conditions
Ropeway nstallation at an altitude of 1,000 m or more
All projects in protected areas
All projects except Category A Apply general conditions
Sewage treatment facility (CETPs) ― All projects Apply general conditions
General Waste Management
Facility (CMSWMF)
― All projects Apply general conditions
2.7.2 Environmental Impact Assessment Scheme in India
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
100
(5)Projects that require environmental clearance (construction / construction, regional development, housing
improvement etc.)
List of projects that do not require environmental clearance (construction / construction, regional development, housing
improvement etc.)
Project TypeCategory
conditionsA (Central Government Level) B (State Government Level)
Building and Construction projects >20,000 sq. mtrs and <1,50,000 sq. mtrs. of
built-up area.
The term “built up term area “for the purpose of this Notification
the built up or covered area on all floors put together including its
basement and other service areas, which are proposed in the
building or construction projects.
Note 1:-The projects or activities shall not include industrial shed,
School, College, Hostel for educational institution, but such
buildings shall ensure sustainable environmental management,
solid and liquid waste management, rain water harvesting and
may use recycled materials such as fly ash bricks.
Note 2:- “General Conditions” shall not apply.
Townships and Area Development
projects.
Covering an area ≥50 ha and or built up
area ≥1,50,000 sq. mtrs.
A project of Township and Area Development Projects covered
under this item shall require an Environment Assessment Report
and be appraised as Category ‘B1’ Project.
Note:
“General Conditions” shall not apply.
2.7.2 Environmental Impact Assessment Scheme in India
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
101
(1)Outline of assumed business
Target business
(Smart city technology
etc.)
Environmental
improvement effect etc.Life improvement effect Regional economic effect
Environmental
clearance compliant
Construction
of traffic
information
platform
Promotion of public
transportation (unified IC
card introduction)
Energy saving, CO2
reduction, air pollution
prevention
Shortening commuting
time, improving
convenience, reducing
traffic accidents
Dissemination of
electronic money,
revitalization of related
industries
Not covered
Modal shift to rail cargo Energy saving, CO2
reduction, air pollution
prevention
Relaxation of traffic
congestion
Facilitation of logistics Not covered
Realization
of distributed
energy
network
Introduction of renewable
energy such as PV
CO2 reduction Not covered
Introduction of EV traffic,
EV station
CO2 reduction, air
pollution prevention
Revitalize related
industries, create jobs
Not covered
Introduction of smart
meters in factories and
others (+ EMS)
Energy saving, CO2
reduction
Revitalize related
industries, create jobs
Not covered
Introduction of centralized
processing system for
factory wastewater
Water pollution prevention,
energy saving, CO2
reduction
Revitalize related
industries, create jobs
coverage
2.7.3 Environmental Improvement Effects that this Project May Experience · Impact on Environmental Society
Most of this project is out of the scope of environmental clearance.
Energy saving, CO2 reduction, pollution prevention), living improvement effect (shortening commuting time, improving
convenience, reducing traffic accidents), regional economic effect (related We tried to evaluate the promotion of industry,
revitalization of region, promotion of company location, promotion of housing development, employment creation).
In particular, we attempted to estimate the CO2 reduction effect based on the hypothesis regarding the scale of introduction.
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
102
(2)Promotion of use of public transportation (introduction of IC card, facilitation of transfer by unification)
This project aims to promote the use of public transportation of the residents of the city through the construction of a traffic information
platform in the Ahmedabad metropolitan area, such as facilitation of transfer by unifying IC cards.
ICT related advanced technologies such as artificial intelligence (AI) technology for big data analysis, contact type / non-contact type IC card,
sensor, camera, signal control, etc. are assumed as related technologies in Japan that can be introduced.
At Gujarat's Initiatives In Environment Conservation, we announced that 40% of private cars (four wheels, three wheels, two wheels) will be
transferred to public transportation such as BRTS.
Through this project, we can expect about 325 thousand tons of CO2 reduction effect, environmental improvement effect such as air pollution
control.
In addition, regional economic effects such as shortening of commuting time, improvement of convenience, life improvement effect such as
reduction of traffic accidents, efficiency of logistics, promotion of company location, development of residential areas, promotion of
employment etc. are also expected.
Classification Effect etc.
Environmental
improvement
effect
Energy saving, CO2
reduction effect
Approximately 325,000 t-CO 2 (See next page)
Environmental burden
reduction effect
Reduction of NOx / SPM emission accompanying improvement of fuel economy by alleviating
traffic congestion
Life
improvement
effectOther
Improve convenience Improve the convenience of residents by easing traffic congestion, shorten commuting time
Improve safety Reduced traffic accident
Other Shortening commuting time
Regional
economic effect
Promotion of related
industries
Promotion of transportation related industry, IT industry
Revitalize local economy Facilitation of logistics by easing traffic congestion, promotion of company location, promotion of
residential area development
Employment creation Variety of employment creation in transportation related industries and emerging cities
2.7.3 Environmental Improvement Effects that this Project May Experience · Impact on Environmental Society
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
103
(3) Introduction of renewable energy such as PV
Classification Effect etc.
Environmental
improvement
effect
Energy saving, CO2
reduction effect
約74.3万t-CO2 (次頁参照のこと)
Environmental burden
reduction effect
Reduction of NOx / SPM emission at grid power plant
Life
improvement
effect
Improve safety Secure stable power
Regional
economic
effect
Promotion of related
industries
Promotion of energy-related industries
Revitalize local
economy
Promotion of company location by securing stable electric power, promotion of housing
development
Employment creation Job creation in PV industry
This project is to build a distributed renewable energy network by promoting the introduction of solar power generation to
industrial parks and others.
Besides solar power generation systems, storage battery systems, control technologies, etc. are assumed as related
technologies that can be introduced in Japan.
This project is consistent with the re-energization policy promoted by the Government of India and the Government of
Gujarat State. In Gujarat Province, we set a goal of 500 MW solar power generation.
Through this project, we can expect about 743 thousand tons of CO2 reduction effect and environmental improvement effect
such as air pollution control.
In addition, we are also expecting regional economic effects such as stable improvement of living conditions such as
electricity security, revitalization of PV related industry, development of residential areas, promotion of employment.
2.7.3 Environmental Improvement Effects that this Project May Experience · Impact on Environmental Society
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
104
(4)Introduction of EV traffic, EV station
This project promotes the introduction of EV traffic while trying to develop EV infrastructure in Ahmedabad metropolitan
area.
About 1,000 buses the Ahmedabad City Transportation Service (AMTS) is driving. In order to alleviate traffic congestion and
at the same time to reduce GHG emissions, the Bus Rapid Transport System (BRTS) has been introduced. It is also a plan to
introduce EV bus to BRTS.
Technologies related to EV stations such as EV bus, operation control system, charger etc are assumed as related
technologies in Japan that can be introduced.
Here we set up a scenario to introduce the EV bus for commuting to a new industrial estate and calculate the amount of CO2
reduction. CO2 reduction effect of about 5,700 t-CO2, environmental improvement effect such as air pollution control can be
expected.
We also expect regional economic effects such as revitalization of EV-related industries, development of residential areas,
promotion of employment, etc.
Classification Effect etc.
Environmental
improvement
effect
Energy saving, CO2
reduction effect
CO2 reduction effect of about 57 million t-CO2
Reduction of
environmental impact
Reduction of NOx / SPM emissions and reduction of noise by reducing fuel for
automobiles
Life improvement
effect
Regional
economic effect
Promotion of related
industries
Promotion of EV related industries
Revitalize local
economy
Promotion of company location by securing stable electric power, promotion of housing
development
Employment creation Employment creation in EV related industries
2.7.3 Environmental Improvement Effects that this Project May Experience · Impact on Environmental Society
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
105
(5)Introduction of smart meter at each facility (+ EMS)
Classification Effect etc.
Environmental
improvement
effect
Energy saving, CO2
reduction effect
CO2 reduction effect of about 297,000 t-CO2
Reduction of
environmental impact
Reduction of NOx / SPM emission by energy saving
Life improvement
effect
Regional
economic effect
Promotion of related
industries
Promotion of energy conservation related industries
Revitalize local economy Promotion of company location by securing stable electric power, promotion of
housing development
Employment creation Job creation in energy conservation related industries
This project promotes the introduction of visualization and energy saving measures by introducing smart meters and energy
management system (EMS) at facilities such as factories that are located in four industrial parks and others.
In addition to solar power generation systems, power storage systems, control technologies, etc. are assumed as related
technologies that can be introduced in Japan.
This project is consistent with energy conservation policy promoted by the Gujarat State Government. Gujarat State aims to
reduce energy consumption of public facilities and private facilities by 30% (Gujarat's Initiatives In Environment
Conservation).
Through this project, we can expect CO2 reduction effect of about 297,000 t-CO2 and environmental improvement effect
such as air pollution control.
In addition, regional economic effects such as the promotion of corporate location such as stable electric power securing,
revitalization of energy conservation related industries such as ESCO and promotion of employment accompanying it are
also expected.
2.7.3 Environmental Improvement Effects that this Project May Experience · Impact on Environmental Society
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
106
(6) Modal shift to rail cargo
2.7.3 Environmental Improvement Effects that this Project May Experience · Impact on Environmental Society and CO2 reduction
Classification Effect etc.
Environmental
improvement
effect
Energy saving,
CO2 reduction
effect
CO2 reduction effect of about 1,000 t-CO 2
Reduction of
environmental
impact
Reduction of NOx / SPM emission by reducing automobile fuel
Life improvement
effect
Improve
convenience
Relaxation of traffic congestion
Regional
economic effect
Promotion of
related industries
Promotion of rail cargo related industries
Revitalize local
economy
Promotion of company location by improving transport efficiency, stabilizing, and reducing
distribution costs
Employment
creation
Job creation in rail cargo related industry
This project promotes shifting from truck transportation to railway transportation as a means of distribution of companies entering industrial
parks.
A modal shift to rail cargo enables collective mass transportation and reduction of large truck transport is expected to save energy, reduce
CO2, suppress air pollution, alleviate traffic congestion, etc.
As relevant Japanese technologies that can be introduced, locomotives / cargo transport systems, RFID (electronic tag) of transport
containers, and the like are assumed.
Here, assuming the transportation of new car from Suzuki's Gujarat factory to Kandla port, calculate the amount of CO2 reduction. It is
expected that CO2 reduction effect of about 1,000 t-CO 2, environmental improvement effect such as air pollution control can be expected.
In addition, we expect regional economic effects such as revitalization of railway cargo related industry, promotion of company location,
promotion of employment etc.
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
107
(7)Improvement of environment by introduction of centralized wastewater treatment system · Effect on
environmental society
By concentrating wastewater from factories moving into industrial estates, it is expected to realize efficient processing
compared to individual processing systems, reduce costs, reduce water regulation risk, etc. In addition, effective utilization
and stable utilization of water resources can be expected by regeneration and reuse of wastewater.
As related technologies that can be introduced, water treatment membranes, water treatment devices, sensors, control
systems, chemicals, etc., are assumed.
In addition, we expect regional economic effects such as promotion of water treatment related industries, promotion of
company location, employment creation etc.
Classification Effect etc.
Environmental
improvement
effect
Energy saving,
CO2 reduction
effect
Reduction of
environmental
impact
Water pollution prevention
Life improvement
effect
Improve
convenience
Public health improvement
Regional
economic effect
Promotion of
related industries
Promotion of water treatment related industries
Revitalize local
economy
Promotion of company location
Employment
creation
Job creation in water treatment related industry
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
2.7.3 Environmental Improvement Effects that this Project May Experience · Impact on Environmental Society and CO2 reduction
108
(Amount of CO2 reduction by shifting to public transportation) = (CO2 reduction by decrease of own vehicle commuting)-( CO2 reduction by bus commuting)
(CO2 reduction by decrease of own vehicle commuting)=Distance of commuting/Mileage×(decreased number of vehicle)×operational days×CO2emission factor
( CO2 reduction by bus commuting)= Distance of bus operation/Mileage × number of bus × operational days×CO2emission factor
(Decreased number of own vehicle commuting )=commuting population × shifting rate to public transpiration
Number Unit
Parameters
Distance of commuting (round trip) 30 km
Mileage (4 wheeler) 15 km/L
Mileage (2 wheeler) 53.6 km/L
Mileage (3 wheeler) 23.6 km/L
Mileage (Diesel bus) 3.6 km/L
Annual working days 300 Day
Annual bus operational days 300 Day
Commuting population
Ahmedabad+Mahesana District)1,640,000 People
Commuting population (Ahmedabad) 800,000 People
Number of Bus 1,000 Unit
Shifting rate to public transportation 40 %
CO2emission factor(Petrol) 2.322 kg-CO2/L
CO2emission factor(Disel) 2.619 kg-CO2/L
Number unit
Result
Energy Consumption
4 wheeler 117,919,201 L
2 wheeler 213,998,550 L
3 wheeler 24,982,882 L
Bus 2,500,000 L
CO2 Emission
4 wheeler 273,808,385 kg-CO2
2 wheeler 496,904,633 kg-CO2
3 wheeler 58,010,251 kg-CO2
Bus 6,547,500 kg-CO2
CO2 Reduction
4 wheeler 109,523,354 kg-CO2
2 wheeler 198,761,853 kg-CO2
3 wheeler 23,204,100 kg-CO2
Bus ▲6,547,500 kg-CO2
Total 324,941,808 kg-CO2
Total 324,942 t-CO2
Number in `000 Possession
Automobile
2 wheeler 171.2 78%
4 wheeler 26.4 12%
3 wheeler 8.8 4%
others 13.9 6%
220.3 100%
Calculation
Calculation of CO2 reduction by Promotion of public transportation (unified IC card introduction)
2.7.4 Related material for energy based CO2 reduction
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
109
(Amount of CO2 reduction by solar energy)=(Grid power reduction by solar energy)×Grid emission factor
(Grid power reduction by solar energy)=(Power consumption in industrial estate)× Ratio of renewable energyCalculation
Data unit
Parameters
Area of industrial estate 3,168 ha
Operational hours 4,380 h
Unit of power consumption in Industrial
area0.214 MW/ha
Power consumption in Industrial area 2,971,272 MW
Ratio of renewable energy 25 %
Grid emission factor(Western India) 1.00 t-CO2/MWh(2013-2014)
Data unit
Result
Grid power reduction 742,818 MWh
CO2 reduction 742,818 t-CO2
Industrial estate gross area unit
Area
MBSIR 500 ha
Bol SANAND 708 ha
Khoraj 1,436 ha
Becharaji 524 ha
計 3,168 ha
Item Data unit
Neemrana industrial
estate
Area 467 ha
Power
consumption100 MW
Calculation of CO2 reduction by Introduction of renewable energy such as PV
2.7.4 Related material for energy based CO2 reduction
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
110
(CO2 reduction by EV bus)=(CO2 reduction by own vehicle )-(CO2 reduction by EV bus)
(CO2 reduction by own vehicle)=Mileage×(Number of decreased own vehicle commuting)×Operating days × emission factor
(CO2 reduction by EV bus)=Distance of EV bus/Mileage ×Number of EV bus × Operating days × Grid mission factor
(Number of decreased vehicle)=Number of employee × Shifting rate to EV bus
Calculation
Number unit
Parameters
Distance of commuting (round trip) 30 km
Mileage(4 wheeler) 15 km/L
Mileage(2 wheeler) 53.6 km/L
Mileage(3 wheeler) 23.6 km/L
Mileage(Diesel bus) 3.6 km/L
Mileage (EV bus) 1.03 km/kWh
Annual working days 300 Day
Annual operating days of bus 300 Day
Number of employee 61,732 Employee
Number EV bus 62 Unit
Shifting rate to EV bus 20 %
CO2emission factor(Petrol) 2.322 kg-CO2/L
CO2emission factor(Diesel) 2.619 kg-CO2/L
Grid emission factor(Western India) 1.00 t-CO2/MWh(2013-2014)
車種 Number unit
Result
Energy
Consumption
4 wheeler 4,438,645 L
2 wheeler 8,055,206 L
3 wheeler 940,391 L
EV bus 539,405 kWh
CO2 reduction
4 wheeler 10,306,533 kg-CO2
2 wheeler 18,704,189 kg-CO2
3 wheeler 2,183,587 kg-CO2
bus 539,405 kg-CO2
CO2 reduction
4 wheeler 2,061,307 kg-CO2
2 wheeler 3,740,838 kg-CO2
3 wheeler 436,717 kg-CO2
bus ▲539,405 kg-CO2
Total 5,699,457 kg-CO2
Total 5,699 t-CO2
Industrial estate Area unit
Area of
Estate
MBSIR 500 ha
Bol SANAND 708 ha
Khoraj 1,436 ha
Becharaji 524 ha
Total 3,168 ha
Item Data unit
Neemrana
Industrial estate
Area 467 ha
Number of
employee9,100
emplo
yee
‘000 Possession
Automobile
2 wheeler 171.2 78%
4 wheeler 26.4 12%
3 wheeler) 8.8 4%
others 13.9 6%
220.3 100%
Calculation of CO2 reduction by Introduction of EV traffic, EV station
2.7.4 Related material for energy based CO2 reduction
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
111
(CO2 reduction by EMS )=( Grid power reduction by EMS )×Grid emission factor
(Grid power reduction by EMS)=(Power consumption in the industrial estate)×Energy Saving Rates
Calculation
Number unit
Parameters
Area of Industrial estate 3,168 ha
Operational hours 4,380 h
Unit of power consumption in Industrial
area0.214 MW/ha
Power consumption in Industrial area 2,971,272 MWh
Energy Saving Rates 10 %
Grid emission factor (Western India) 1.00 t-CO2/MWh(2013-2014)
Number unit
Result
Grid power reduction by EMS 297,127 MWh
CO2 reduction 297,127 t-CO2
Industrial Estate Area unit
Area of industrial
estate
MBSIR 500 ha
Bol SANAND 708 ha
Khoraj 1,436 ha
Becharaji 524 ha
Total 3,168 ha
Items Data unit
Neemrana Industrial
Estate
Area 467 ha
Power
consumption100 MW
Calculation of CO2 reduction by Introduction of EMS system such as smart meter
2.7.4 Related material for energy based CO2 reduction
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
112
(CO2 reduction by rail cargo)=(CO2 emission by truck )-{(CO2 emission by truck after shift)+(CO2 emission by rail after shift)}
( CO2 emission by truck before shift )=Distance / Mileage × Gross Weight × emission factor
( CO2 emission by truck after shift )= Distance / Mileage × Gross Weight × emission factor × Ratio of railway freight
(CO2 emission by electric locomotive after shift) = Distance / Mileage × Gross Weight × emission factor × Ratio of railway freight
(CO2 emission by Non electric locomotive after shift) = Distance / Mileage × Gross Weight × emission factor × Ratio of railway freight
Calculation
number unit
Parameter
Distance of logistics (round trip) 300 km
Average mileage of truck 0.286 L/km・TEU
Consumption ratio of electric locomotive 0.00013 MWh/TEU・km
Consumption of energy per no electric locomotive 0.043 L/TEU・km
Ratio of railway freight 60 %
Weight per 1TEU 20.5 ton
Number of produced vehicle in Gujarat 250,000 Unit per year
Number of unit of sea transport (50% of vehicle) 125,000 Unit per year
Total unit of vehicle transport 125,000 Unit per year
Unit number of vehicle per truck 10 Unit
Weight of a vehicle 1.5 T
Gross weight per cargo with 10 vehicle 15 T
Gross weight 187,500 t
Average number of carrier per cargo 6 Unit
Gross weight per vehicle 1.5 T
Gross Weight per freight cargo 9 T
Expected number of unit of freight 20,833 Unit
Weight of freight 187,500 t
Ratio of shifting to modal 60 %
CO2emission factor(Diesel) 2.619 kg-CO2/lGrid emission factor(Western India) 1.00 t-CO2/MWh(2013-2014)
Number unit
Result
Energy Consumption
Truck logistics 784,756 L
Electric locomotive 357 MWh
Non Electric locomotive 117,988 L
CO2 consumption
Truck 2,055,276 kg-CO2
Electric locomotive 356,707 kg-CO2
Non Electric locomotive 309,010 kg-CO2
CO2 consumption
after shift to modal
Truck 822,110 kg-CO2
Electric locomotive 214,024 kg-CO2
Non Electric locomotive 185,406 kg-CO2
CO2 reduction
Case for Electric locomotive 1,019 t-CO2
Case for Non Electric
locomotive1,048 t-CO2
Calculation of CO2 reduction by Modal shift to rail cargo
2.7.4 Related material for energy based CO2 reduction
Source : Created by Mizuho Information Research Institute from various sources
2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction
113
2.8 Advantage of Japanese Companies and Prediction of Benefits to Japan
114
2.8.1 Analysis of the advantage of Japanese companies
2.8 Advantage of Japanese Companies and Prediction of Benefits to Japan
(1)Confirmation of advantage of Japanese technology
As a result of the interview, the following were extracted as Japanese technology which is assumed to be introduced in this
Smart Infrastructure project.
Smart infrastructure technology of Japanese companies has superiority over other countries‘ technologies regarding safety,
stability and reliability, and it is expected to gain market share in the Indian market.
Because the operation and maintenance (O&M) is the source of important revenue for the solution under consideration, it is
necessary to develop business through collaboration between Japanese companies and Indian companies.
Company
NOIndustry Technology
Introduction
possibilityAdvantage Issues etc.
Advantage of Japanese
TechnologyNote
1ICT
Electric
BRTS
Face recognition
security
DMIC
○ ○
Extension and extension of
BRT lane
Unified IC card standard
Finance
System vendors, in-vehicle
devices, sensors, signal control,
etc.
It is important to be a prime
contractor to design and operate the
whole project
2ICT
ElectricSmart meter ○ ○
Collaboration with Indian
service companies
Distribution system related
technology, etc.
There are many leading companies
in overseas enterprises, competition
intensified
3 Trading
EV Charging Station
VPP(Virtual Power
Plant)○ ○
Collaboration with Indian
service companiesQuick charging system etc.
In emerging markets there is a
possibility that EVs with features
such as small size and low price will
spread
4Engineerin
g
Advanced Water
Treatment System○
○O&M
Installation experience in IndiaProcessing technology, sensors
etc.
In order to compete with overseas
companies, Japanese companies
need to develop a business
structure that provides a
comprehensive service from EPC to
O&M
5 Rail cargo
Transportation
System Management
Operation &
Maintenance
○○
O&M
Traffic management and rail
widths do not adapt
Transportation System
Management
Operation & Maintenance etc.
Interlocking with hardware
technology (vehicle, EPC) and
software technology (control,
operation management) is required
Source : Created by Mizuho Information Research Institute from various sources
115
2.8.2 Benefits to Japan (economic effects) forecast
(1)Concept of predicting benefits (economic effects) to Japan
In 2015, the Government of India plans to construct 100 smart cities nationwide under the smart city plan “Awas Yojna
Mission” as part of making Make in India “Make in India” administration Announced. In Gujarat province, six cities including
Ahmedabad City were selected. The Government of India invests a total of 480 billion Indian rupees over the next five years.
The budget allocated to one city is about 5 billion Indian rupees (5 years worth).
With these business opportunities as opportunities, developmental developments such as (1) entry into the smart
infrastructure business of Japanese companies, (2) extension of industrial park dedicated to Japan, (3) improvement of
business environment centered on smart infrastructure, and (4) expansion of Japanese companies . Developmental
development such as is assumed.
As for the scale of business of Japanese companies, it is estimated that 10 to 5 billion yen (estimated from the budget size of
India) per company by entry into the smart infrastructure business at the time, as a direct investment in the industrial park
after that, 50 to 20 billion yen is expected per company (estimated from the investment record so far).
2.8 Advantage of Japanese Companies and Prediction of Benefits to Japan
Japanese companies
Participation in smart
infrastructure business
Expansion of exclusive industrial
park for Japan
Strengthening the supply chain
Smart infrastructure core
Improvement of business
environment
Full-scale entry of Japanese
companies
About five companies
1 to 5 billion yen scale per
company
About 50 companies
5 billion to 15 billion yen per
company scale
Approximately 300 companies
5 billion to 20 billion yen scale
per company
Dividend from
overseas
subsidiary to
parent
company ·
Expansion of
payment
amount of
royalty etc.
Source : Created by Mizuho Information Research Institute from various sources
2.8.2 Benefits to Japan (economic effects) forecast
(1)Expansion of exports from Japan
Direct investment from overseas to India has become active under Mody 's Make in India. Investment from Japan and the
number of companies entering the country also increased.
Along with the advancement of Gujarat state companies of Japanese companies, business infrastructure such as industrial
parks and infrastructure improvement, supply chain strengthening and other business infrastructures are moving forward,
expanding the amount of procurement of parts and products from Japan, dividends from overseas subsidiaries to parent
companies · royalty Expansion of the payment, export of various kinds of goods from Japan required for local life are
expected.
Dividend from overseas
subsidiary to parent company ·
Expansion of payment amount of
royalty etc.
Expansion of procurement of parts
and products from Japan
Expansion of imports of diverse
products from Japan required for
local life
( Strengthening business
base ) Infrastructure
development such as
industrial park
Strengthening the
supply chain
Improvement of urban
infrastructure
Expansion of employment
Increase income
Improve public health
Improvement of standard of
living
Benefit effect to India Benefit effect to Japan
Expansion of exports from Japan
2.8 Advantage of Japanese Companies and Prediction of Benefits to Japan
Source : Created by Mizuho Information Research Institute from various sources
116
117
3. 10 year vision for the S. M. B. area and milestone
3.1 10 year vision P.118
3.2 Milestone P.120
118
S.M.B.'s 10 year vision: "One of the world's smart industrial metropolitan areas, centred on the automobile industry"
3.1 10 Year Vision
A vast market with 1.5 Billion
population(World’s most populous country by 2020)
Make in India(The third largest automobile
manufacturer country in the 2020s
Hard and Soft aspects(Tax reform, smart city, rail-road network)
Industry promotion policies(By 2020、new Gujarat Industrial Policy)
New Cities and Industrial parks(13 SIRs including Dholera SIR in
pipeline, Gift City)
Improve regional and national
connectivity(DMIC, DFC, Bullet Train, Metro, Airports)
One of the world's smartest industrial metropolitan areas
(Global platform with state-of-the-art infrastructure, to support production of 2
Million automobiles)
Clustering of automobile industry(Expansion around MB-SIR/Sanand)
Industrial area development plan(Regional development of over 100 kms by
MB-SIR)
Advance industrial park
development(Mandal and Sanand III industrial parks)
Trends
S.M.B 10
year vision
Pillars of
Growth
Revitalization
through improved
regional connectivity
Public transport
Metro, BRT using
ICT
Improving railway
freight system
Revitalization
through energy
efficiency by state-of-
the-art technology
Use of EV
(Virtual Power Plants
of Electric Vehicles)
Water treatment
system
Region
Housing for all
Social Infra
(Medical/Educatio
n/Housing)
Peaceful
livelihood
(Crime and
accident prevention)
Living with locals
Nurturing and inviting
skilled resources
HR Development
Job creation
Social Infra
(Business/
Education/Medical)
Others(Hotels
etc.)
FDI,Attracting Indian
companies
Hybrid
Infrastructure land
development
Japanese
Industrial parks
Strengthen GIDC
Incentives
Trends in India Trends in Gujarat Trends in the SMB region
Mobility Smart Energy Community Human Resource Industrial Infrastructure
Strengthen
existing
119
Focus on long term (10 years) , add elements to the existing policy matrix and promote regional development
3.1 Recommendations for development
①Monitoring and support of Gujarat
state master plan implementation
(Infra , MBSIR etc.)
②Introduction of smart
infrastructure (Industrial park water
treatment, electricity supply and
distribution system by green
automobile, etc.)
③Encouraging businesses for skill
development programs
④ Promotion and monitoring of
projects (DFC, Smart Grid, IC tag
etc)
⑤Strengthen Investment promotion
(Japan Desk, GIDC staff training,
Incentives etc.)
Private investment
promotion
Skill development
Infrastructure
① Strengthening industrial development corporation for development
②Central window for industrial development
③Enhance Single window function (Parks outside GIDC purview)
④Strengthening iNDEXb
⑤Enhance teams working on PPP
⑥Establishing institutes to train skilled workers and trainers
⑦Strengthen skill development institutes and analysis of Skill Gap
⑧ Promotion of infrastructure projects
Current Policy Matrix
Areas of Focus for next 10 years
Medium to long term development of Target Region
+
Gujarat State Government is working on long-term regional development of target areas such as MB-SIR, in terms of infrastructure,
human resource, industrial parks. Japanese government, in consultation with the state government, has devised “Gujarat State
Investment Promotion Program” of JICA with a Policy Monitoring matrix consisting of 3 pillars, 8 items to promote Policy Action
In addition to the above activities, aspects required in the mid – long term for the Targeted area were identified during this study and
Pillars of growth along with the proposed schedules are shown.
3 Pillars Eight policy points
Mobility
Smart Grid
Community
Mobility
Smart Energy
Community
Human Resources
Industrial
Infrastructure
Strengthen intra-regional traffic
Efficient public transportation system utilizing ICT
Completion of DFC
Introduce systems and technologies for Energy Conservation (Energy
efficient systems and Virtual Power Plants by Electric Vehicles)
Harmony with existing residents and development of easy-to-live, easy-
to-work environment (housing in the area, security, hospital, school etc.)
New
initiatives
Pillars of growth Policy points for development
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 ~
Forecast
Dev
elop
men
t
Asp
ects
Infrastructure
Development
120
3.2 Future Course of Action
(Infrastructure Development)
Short Term(1~3 years) Mid-Term(4~6 years) Long Term(7~10years)
Mandal Estate
(Phase 2)
Unify & Enhance Single
Window function
Develop Industrial Area
Promote Investment
Function
Enhance PPP Team
Promoting Infra Investments
Sanand Estate Ph.II
Sanand III Industrial Estate
Allotment of Land (expected to commence from September 2018)
JICA Program Loan
Items (~FY19)
GIDC Industrial Estates (other
than Bagapura)
Phase I of Industrial Area in MB-SIR
Existing Industrial
Estates are expected
to be filled up soonMascot Industrial Park
MB-SIR Approvals/Basic Infrastructure
Development
Phase II of Industrial Area in MB-SIR
New Industrial Areas
Enhance GIDC Functions
Plan Investment Incentive
No. Of
Japanese
Companies: 25
Passenger Car Mfg.
Capacity of the region –
1 Million Cars
MB-SIR Development
MB-SIR Ind. Area
Development Support
Support for
Sanand III
Development
Sanand III
Development
(Ind. Area/Infrastructure)
Continue Monitoring of Infrastructure
Development
Complete Road Developments as per plan
Monitoring DFC
Approvals
Enhance systems for
GIDC Personnel
Training for GIDC
Enhance Japan Desk
Function
75
additional
Japanese
Companie
s to be
setup in
the region
25+α
additional
Japanese
to be
setup in
the region
Training GIDC Personnel
Support for MB-
SIR Development
Widening SH-7、133 arterial rd.
No. Of
Japanese
Companies: 50
Passenger Car Mfg.
Capacity of the region –
2 Million Cars
No. Of
Japanese
Companies: 100
No. Of Japanese
Companies:
125+ α
Actions by Private Cos.
(under Implementation)
Actions by Gujarat Govt. (Future)Actions by Private Cos.
(future)
Actions by Gujarat Govt. (under
Implementation)
Actions by Japanese Govt.
(under implementation)
Actions by Japanese Govt. (Future)
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 ~
Forecast
De
velo
pm
en
t
As
pec
ts
Human
Resources
121
3.2 Future Course of Action
(Human Resources)
JIM@Mehsana - A Few Hundred Graduates per year
JICA Program Loan
Items (~FY19)
Training of Industrial
Workforce
Skill Gap Analysis
JIM@Mandal - About 30 Graduates per year
New JIMs – 500 Graduates per year (Indicative)
Workforce trained in Basic Skills – 1000 members per year (Indicative)Develop of Basic Skills
training for Workforce
JIM@Mehsana - Increase Student Intake JIM@Mehsana - Increase Student Intake
JIM@Mandal - Increase Student Intake JIM@Mandal - Increase Student Intake
Total
Industrial
Workforce
10,000
Total
Industrial
Workforce
20,000
Support Set up of
New JIMs
(Weekend
Schools etc.)
Support Japan India Institute for Manufacturing (JIM) (such as Teaching Equipments, Teacher Training)
Support training of Workforce in
Japanese Language
Impart Japanese Language Education by tie up with Local Institutions(Second Course on Foreign Language)
Impart Japanese Language Education by tie up with Local Institutions(Second Course on Foreign Language)
Start of Weekend Training
Schools (2018~)
Industrial Workforce Development Program as
per Industry requirements
Support Industrial Workforce
Development Program
No. Of
Japanese
Companies: 25
Passenger Car Mfg.
Capacity of the region –
1 Million Cars
No. Of
Japanese
Companies: 50
Passenger Car Mfg.
Capacity of the region –
2 Million Cars
No. Of
Japanese
Companies: 100
No. Of Japanese
Companies:
125+ α
Short Term(1~3 years) Mid-Term(4~6 years) Long Term(7~10years)
Actions by Private Cos.
(under Implementation)
Actions by Gujarat Govt. (Future)Actions by Private Cos.
(future)
Actions by Gujarat Govt. (under
Implementation)
Actions by Japanese Govt.
(under implementation)
Actions by Japanese Govt. (Future)
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
2028
~
Forecast
De
velo
pm
en
t
As
pec
ts
Mobility
Energy
Community
122
3.2 Future course of action
(Others)
Ahmedabad Metro
opens
MB-SIR approval / basic infrastructure development (Phase 1)
MB-SIRdevelopment
Promotion of residential area development
DFC monitoring centre
Mumbai Ahmedabad
Bullet Train
Operational
DFC
Partial openingDholera New International
Airport opens
MB-SIR Basic Infrastructure Monitoring
Residential area development (within MB-SIR)
* Low price housing
MB-SIR approval / basic infrastructure development (Phase 2)
Social Infra(within MB-SIR)
Support for Residential area
development and Japanese
companies
Improving Social Infra
Support Japanese
participation
Residential area development (within MB-SIR)
Social Infra development( Within MB-SIR)
Support for Residential
area development and
Japanese companies
Support for social infra
development and
Japanese companies
By 2027
population
within MB
SIR :
330,000
Monitoring of MB-SIR basic infrastructure
By 2022
population
within MB
SIR :
140,000
Support and monitoring MB-SIR final plan
Indian Residential development ( outside MB-SIR)
Reduction of Traffic in target area
Participation of private companies in traffic congestion alleviation system using ICT
Public Bus transport
Rail lines by G-ride
Railway Freight distribution centre
Indian Residential development ( outside MB-SIR)
Social Infra outside MBSIR
(Industrial Security, Hospital, Residence, CSR etc.)Social Infra outside MBSIR
Energy & environment conservation plan
Social Infra around MBSIR
(Industrial Security, Hospital, Residence, CSR etc.)
BRT Extension for long routes
Energy & environment
conservation planning
EV charging station, EMS smart meter etc.
Water treatment facility (industrial & housing)
BRT extension for longer routes
No. Of Japanese
Companies: 25No. Of Japanese
Companies: 50
No. Of Japanese
Companies: 100
No. Of Japanese
Companies:
125+ α
Short Term(1~3 years) Mid-Term(4~6 years) Long Term(7~10years)
Actions by Private Cos. (under
Implementation)
Actions by Gujarat Govt. (Future)Actions by Private Cos.
(future)
Actions by Gujarat Govt. (under
Implementation)
Actions by Japanese Govt.
(under implementation)
Actions by Japanese Govt. (Future)
123
The report has been organized to provide opinions based on the analysis by the
experts, supported by extensive collection of information and hearings in India and
Japan. The opinions of this report is those of Mizuho Bank and is formulated without
aiming to incorporate the opinions of the Ministry of Economy, Trade and Industry
(METI) of Japan.
Disclaimer