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GUJARATNovember 2010

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Investment climate of a state

Resources/Inputs

Incentives to industryPhysical and social

infrastructure

Regulatory framework

• Skilled and cost-effective labour

• Labour market flexibility

• Labour relations

• Availability of raw materials and natural

resources

• Tax incentives and exemptions

• Investment subsidies and other incentives

• Availability of finance at cost-effective terms

• Incentives for foreign direct investment (FDI)

• Profitability of the industry

• Procedures for entry and exit of firms

• Industrial regulation, labour regulation, other

government regulations

• Certainty about rules and regulations

• Security, law and order situation

• Condition of physical infrastructure such as

power, water, roads, etc.

• Information infrastructure such as telecom, IT,

etc.

• Social infrastructure such as educational and

medical facilities

Investment climate of a state is determined by a mix of factors

GUJARAT November 2010

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Contents

Advantage Gujarat

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Gujarat


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Gujarat – State profile• Gujarat is spread over an area of 196,024 sq km (6

per cent of India‟s land area). It is located on the Western coast of India and has the longest coastline of 1,600 km in the country.

• The state has 26 districts. Gandhinagar is the capital city. Ahmedabad, Vadodara, Surat, Rajkot, Bhavnagar and Jamnagar are the other key cities.

• The state has three major groups of rivers flowing in different directions. The major rivers of central and Northern Gujarat are Narmada, Sabarmati and Mahi. Rivers flowing through the Saurashtra region are Mithi, Khari, Bhadar, Shetrunji and Bhogavo. Rivers in the Southern part of the state include Narmada, Tapi, Purna, Ambika, Auranga and Damanganga.

• There are eight agro climatic zones in the state that support cultivation of a wide range of crops.

• The most commonly spoken language of the state is Gujarati. Hindi and English are the other Indian languages used. Source: Maps of India

Gujarat November 2010

ADVANTAGE GUJARAT

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Facilitating infrastructure

Gujarat has excellent infrastructure as compared to

the other states. There are 42 ports, 13 domestic

airports and one international airport. The state also

has extensive road and rail network. The urban and

rural areas have 24-hour power supply. A 2,200 km

gas-grid supplies gas to the industrial areas. There are

83 product clusters, 202 industrial estates, 60 special

economic zones (SEZ) and upcoming infrastructure on

the Delhi-Mumbai Industrial Corridor (DMIC). Almost

one-third of the DMIC project is taking place in

Gujarat alone. A Dedicated Freight Corridor (DFC) is

being set up between Mumbai and Delhi. Of the 20

industrial nodes identified across six states where DFC

passes, six have been proposed for Gujarat alone.

Advantage Gujarat … (1/3)

Source: Maps of India

ADVANTAGE GUJARAT


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Industrially developed state

Gujarat is the „petro capital‟ of India, contributing 34

per cent to petrochemicals and 27 per cent to the

country‟s chemicals and pharmaceuticals business. It

has achieved the distinction of being one of the most

industrially developed states. Accounting for 5 per

cent of the total Indian population, Gujarat contributes

21 per cent to India‟s exports and 13 per cent to its

industrial production. The industrial sector had a 12.5

per cent growth in 2009.

Availability of skilled manpower

Gujarat has good educational infrastructure with

premier institutes in management, fashion, design,

infrastructure planning and pharmaceuticals. Also, there

are industrial training institutes in each district for

training manpower for shop floor level. The State

Government has many initiatives to encourage

innovation in the education sector. Source: Maps of India

ADVANTAGE GUJARAT


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Growing economy and industry

Gujarat reported a 16 per cent year-on-year growth in

GDP at current prices in 2007-08. A robust financial

growth and presence of diverse industry sectors with

leading national and international companies makes it one

of the most attractive investment destinations in the

country.

Investment destination of choice

According to the outlook for corporate investments by

the Reserve Bank of India (RBI), Gujarat ranks first in

private corporate investments in the country. As per

Deutsche Bank research paper on infrastructure

investment scenario in India, 2007, Gujarat offers the

most favourable outlook for infrastructure projects.


Policy support

Gujarat is the only state in India where the State

Government has framed policies in almost all key sectors

such as industry, power, ports, road, IT, agriculture,

minerals and tourism. Gujarat‟s Industrial Policy, 2009,

offers attractive incentives and concessions for

prospective investors.


ADVANTAGE GUJARAT


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Gujarat in figures … (1/2)

Parameter Gujarat All-states Source

Economy

GSDP as a percentage of all

states‟ GSDP7.8 100.0 CMIE, as of 2007-08, current prices

Average GSDP growth rate (%)* 15.6 11.8 CMIE, 2000-01 to 2007-08, current prices

Per capita GSDP (US$) 1,355.7 992.5 CMIE, as of 2007-08, current prices

Physical infrastructure

Installed power capacity (MW) 13,908.1 159,398.5 Central Electricity Authority, as of March 2010

GSM cellular subscribers (No) 26,160,079 456,586,162 Cellular Operators Association of India, as of June 2010

Broadband subscribers (No) 322,656 4,981,976 As of October 2008

National highways (km) 3,245 70,548Ministry of Road Transport & Highways, Annual Report

2008-09

Major and minor ports (No) 1 + 41 12 +187 Ministry of Shipping

Airports (No) 14 133 Airport Authority of India

Social Indicators

Literacy rate (%) 69.1 64.8 Census of India, 2001

Birth rate (per 1,000 population) 22.6 22.8Ministry of Health and Family Welfare, RHS Bulletin,

March 2008

ADVANTAGE GUJARAT

*Calculated in Indian rupee terms


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Gujarat in figures … (2/2)

Parameter Gujarat All-states Source

Ease of doing business

FDI inflows (US$ billion) 6.6 120.2

Department of Industrial Policy and

Promotion,

April 2000 to May 2010

Outstanding investments

(US$ billion) 257.3 1972.6 CMIE, as of March 2010

Industrial Infrastructure

PPP projects (No) 33 515 www.pppindiadatabase.com

SEZ (No) 30 363Notified as of July 2010,

www.sezindia.nic.in

Parameter Gujarat Government

Policy support

Sectors with specific policies Industry, SEZ, ports, mineral, power, IT, road

Availability of labour Adequate

PPP: public private partnership: SEZ: special economic zone

ADVANTAGE GUJARAT


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Key industries with policy thrust and factor advantages

Medium High

Low

Medium

High

Industry attractiveness matrix

Agro and food

processing

Engineering and

auto

Dairy

Tourism

Gems and

jewellery

*Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital

Chemicals and

petrochemicals

Textiles and

apparels

Oil and gas

Pharmaceuticals

and biotech

IT

Ports

Mineral based

industries

Power

ADVANTAGE GUJARAT

Factor advantage

Polic

y th

rust


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Contents

Advantage Gujarat







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Socio-economic snapshot of Gujarat

Parameters Gujarat

Capital Gandhinagar

Geographical area (sq km) 196,024

Administrative districts (No) 26

Population density (persons per sq km)* 258

Total population (million)* 50.7

Male population (million) 26.4

Female population (million) 24.3

Population growth rate 1991-2001 (%) 22.7

Sex ratio (females per 1,000 males)* 920

Literacy rate (%)* 69.1

Male (%) 79.7

Female (%) 57.8

Life expectancy at birth (2006-10)

Male (years)

Female (years)

67.2

71.0

Source: Socio-Economic Review of Gujarat, 2009-2010

*Census 2001

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


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Gujarat‟s GSDP

Gujarat‟s GSDP

Source: CMIE

• At current prices, the Gross State Domestic Product (GSDP) of Gujarat was about US$ 73.3 billion in 2008-09.

• The average annual GSDP growth rate from 1999-2000 to 2008-09, was about 13.4 per cent.

• Gujarat was among the states that recorded very high GSDP growth rates in the last decade, compared to the other states.


23.6

23.0

25.7

31.0

38.5

41.8

50.4

62.6

76.3

73.3

0.0 20.0 40.0 60.0 80.0 100.0

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

US$ billion

CAGR13.4%


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Gujarat‟s NSDP

Gujarat‟s NSDP• The Net State Domestic Product (NSDP) of Gujarat was about US$ 61.1 billion in 2008-09.

• The average annual NSDP growth rate from 1999-2000 to 2008-09 was about 13.3 per cent.

Source: CMIE


19.9

19.1

21.2

25.9

32.6

34.3

41.6

52.1

64.1

61.1

0.0 20.0 40.0 60.0 80.0

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

CAGR13.3%

US$ billion


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Gujarat‟s economy has contributions from all three sectors

• In 2008-09 the secondary sector contributed 41.6 per cent to the state‟s GSDP at current prices. It was followed by the tertiary sector (38.4 per cent).

• The share of the primary sector in GSDP was 19.9 per cent in 2008-09 vis-à-vis 18.6 per cent in 1999-2000, the increase being driven by the mining and quarrying and agriculture sub-sectors.

• The mining and quarrying sub-sector registered the highest growth of 14.0 per cent between 1999-2000 and 2008-09 followed by the agriculture sub-sector at 13.3 per cent.

• The primary sector registered a growth rate of 12.9 per cent during 1999-2000 and 2008-09. It was followed by the secondary sector at 12.8 per cent and the tertiary sector at 10.9 per cent.

Source: CMIE

Percentage distribution of GSDP


CAGR

18.6 19.9

39.2 41.6

42.2 38.4

1999-00 2008-09

Primary Sector Secondary Sector Tertiary Sector

10.9%

12.8%

12.9%


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Per capita GSDP


• In 2008-09, the state‟s per capita GSDP was US$ 1,283.7

• The per capita GSDP increased at a CAGR of 11.5 per cent between 1999-2000 and 2008-09.

Source: CMIE

Per capita GSDP

(US$

)

480.6 458.6 500.9596.0

726.5 777.7

922.8

1,127.6

1,355.71,283.7

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1,600.0

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09


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Employment distribution in Gujarat

• Manufacturing accounts for largest share (41 per cent) of employment across industries in Gujarat.

• The total employment in the public and private sectors has increased from 1.8 million in March 2008 to 1.9 million in March 2009.

• As of March 2009, the public sector establishments employed 0.8 million while the level was 1.1 million in the private sector.

• As of March 2009, the public sector employed 0.3 million women (14.7 per cent) while, the private sector employed 0.1 million (10.2 per cent).

Source: “Socio-Economic Review Gujarat State 2009-2010”,

Directorate of Economics & Statistics

Employment by industry as of 2009 (Numbers)


million

0.8

0.6

0.2

0.1

0.1

0.1

0.1

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

Manufacturing

Community, service and personal services

Financing, insurance, real estate & business services

Transport, storage and communication

Wholesale, retail trade and restaurants

Electric,Gas and water

Construction


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39.6%

7.1%5.2% 4.2%

42.6%

5.5% 4.7% 5.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Food Education Medical Durable goods

All-India Gujarat

Consumer expenditure on household goods and services

Source: Household Consumer Expenditure in India, 2007-08 NSS 64th Round

Share of average monthly per capita expenditure on

household goods and other services

• Gujarat is ahead compared to all-India in share of per capita expenditure on food and durable goods.


52.3%

3.7% 6.3%3.6%

53.9%

1.9%3.6% 3.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Food Education Medical Durable goods

All-India Gujarat

Urban Rural


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Brief profiles of key cities in Gujarat

The key cities in Gujarat are Gandhinagar, Ahmedabad, Bhavnagar, Jamnagar, Junagadh, Kutchh, Rajkot, Surat and Vadodara (Baroda).

• Gandhinagar, the state capital is named after „Mahatma Gandhi‟ and it is situated 32 km away from Ahmedabad. It is essentially the seat of the Government, but is transforming into a trade centre.

• Ahmedabad is the largest city and the commercial hub of the state. Traditionally, a textile industry centre of the country, the city is a also becoming a place for education, IT and scientific research industries.

• Bhavnagar is the sixth-largest city of Gujarat, and the third largest city in the Saurashtra region in terms of area. Bhavnagar is also known as the cultural capital of Saurashtra. It is also a trade centre for cotton goods.

• Surat is recognised globally for its textiles, chemicals and diamond industries. Around 92 per cent of the world‟s diamonds are cut and polished in Surat.

• Rajkot is a major tourist destination and a centre for arts. The city contributes to the state‟s economy with many heavy and small scale industries (SSI).

• Vadodara (Baroda) is the cultural capital of Gujarat. It also has several industries, particularly, related to the petroleum, fertiliser and energy sectors.



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Key industries in Gujarat … (1/2)

Key industries in Gujarat

• Agro and food processing

• Dairy

• Chemicals and petrochemicals

• Textiles and apparels

• Engineering and auto

• Gems and jewellery

• Oil and gas

• Pharmaceuticals and biotechnology

• IT

• Minerals

• Ports

• Power

• Tourism

• Gujarat contributes 16 per cent to the industrial production of the country.

• There are12 major industry groups that together account for 86 per cent of total factories, 96 per cent of total fixed capital investment, 94 per cent of the value of output and 95 per cent of value-addition in the state‟s industrial products.

• Gujarat is a leader in several industrial sectors such as chemicals, petrochemicals, drugs and pharmaceuticals, dairy, cement and ceramics, gems and jewellery, textiles and engineering.

• As of March 2009, the state has over 1,570 large units and more than 0.2 million micro, small and medium enterprises (MSMEs).

Source: Government of Gujarat website



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27%

34%

9%

9%

7%

6%

2%

6%

Chemicals and pharma

Petroleum

Engineering Industries

Food Processing

Textiles & Apparel

Metallurgical Industries

Mineral based industriesOthers

Share of industry sectors in Gujarat• Petroleum accounts for the highest industrial production in Gujarat with a 34 per cent share. It is followed by chemicals and pharmaceuticals with 27 per cent share.

• Gujarat is:• The world‟s largest producer of processed

diamonds and wall clocks.

• The world‟s largest gas-based, single-location sponge iron plant.

• The world‟s largest producer of castor and cumin.

• The world‟s third largest producer of denim.

• The world‟s third largest grass root petroleum refinery (at Jamnagar).

• India‟s largest producer of cotton.

• Home to India‟s first liquefied natural gas (LNG) port terminal at Hazira.

Key industries in Gujarat … (2/2)


Source: “Socio-Economic Review Gujarat State 2009-2010”,

Directorate of Economics & Statistics


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Agriculture and dairy

Crop

Annual production in

2008-09

(„000 tonnes)

Sugarcane 15,280.0

Cotton 7,013.8

Wheat* 3,000.0

Onions 1,409.6

Groundnuts* 1,440.0

Rice* 1,390.0

Potatoes 1,448.8

Bajra* 1,020.0

Maize 602.6

Rapeseed and mustard* 500.0

Castor* 490.0

Coconuts 95.2

• Gujarat has a robust agricultural economy; the total crop area covers more than 50 per cent of the state‟s total land area.

• The top-ten crops account for over 96 per cent of the total crop production of the state.

• In 2008-09, the total production of the major crops of the state was over 40 million tonnes. Of these, sugarcane was the major crop. It was followed by cotton, wheat and potatoes.

• The other major crops grown in the state include tobacco, coconuts, groundnuts, rice, jowar (sorghum), bajra (millets), oilseeds, maize, tur and gram.

• Animal husbandry and dairying have a vital role in the rural economy of Gujarat. Gujarat has been a pioneer in cooperative dairy farming, with over a million members, now.

• Gujarat Co-operative Milk Marketing Federation (GCMMF) that markets milk products under the well known “Amul” brand is the state‟s largest milk producer and is based in Anand.

*As of 2007-08

Source: CMIE



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Gujarat‟s exports

• Gujarat contributes 19.2 per cent to India‟s total exports of merchandised goods and services.

• Exports include products from sectors such as textiles, petroleum, chemicals, pharmaceuticals, engineering, and gems and jewellery.

• Export products from intermediate and minor ports include naphtha, petrol, clinker, cement, oil cakes, bauxite, paraxylene, salt, soda ash, food grains, cement clinker, ethylene, etc.

• The total cargo handled by the Kandla Port has increased from 64.9 million tonnes in the year 2007-08 to 72.3 million tonnes in the year 2008-09, showing an increase of 11.3 per cent over the previous year (including transhipment).

Sources: Industries Commissionerate, Gujarat Government, “Socio-Economic Review Gujarat State 2009-2010”, Directorate of Economics &

Statistics



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• As of March 2010, outstanding investments in the state were US$ 257.3 billion.

• Of the total investments, the electricity sector accounted for over 38 per cent with investments worth US$ 98.7 billion followed by services and chemicals.

• FDI inflows between April 2000 and May 2010 were US$ 6.6 billion.

Investments and FDI inflows

Breakup of investments by sector

Source: CMIE


38.4%

18.3%

12.2%

11.4%

6.3%

13.5%

Electricity

Services

Chemicals

Construction

Irrigation

Others

Others include food & beverages, textiles, non-metallic mineral products, metals & metal products and machinery


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Contents

Advantage Gujarat







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Road network

• As of March 2009, the state had 19,163 km of State Highways, 20,707 km of Major district roads, 10,503 km of Other district roads and 21,259 km of Village roads.

• About 38.2 per cent of total expressways and National Highways in the state are multi-lane; 87.9 percent of total roads are asphalt-surfaced. In addition, there is 98.9 per cent rural connectivity through all-weather roads. It is among the highest in India.

• „PragatipathYojana‟, a State Government initiative introduced in 2005, envisages the development of nine high-speed corridors and widening of highways to connect the tribal, coastal, industrial and rural areas with mainstream areas.

Source: Ministry of Road Transport & Highways, Government of India,

Gujarat State Road Development Corporation, Socio-Economic Review of

Gujarat, 2009-2010

Road Type Road length (km)

National Highways 3,245

State Highways 19,163

Major district roads 20,707

Other district roads 10,503

Village roads 21,259

National Highways

State Highways

Railways

Source: Gujarat State Road Development Corporation

Road map of Gujarat

INFRASTRUCTURE STATUS

Sources: Ministry of Road Transport & Highways, Annual

Report 2008-09 and Industries Commissionerate,

Government of Gujarat


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Ports … (1/3)

• The state has one of the strongest port infrastructures in India. It is the first state in India to take up port privatisation.

• Gujarat has 42 ports along a 1,600 km coastline, including one major port at Kandla and 41 minor ports.

• The state has five direct berthing commercial ports, seven direct berthing captive port terminals and four lighterage-cargo ports.

• It handled the largest (79.8 per cent) share of cargo traffic in India‟s minor and intermediate ports, and 11.5 per cent in India‟s major ports in 2008-09.

• The state has two LNG terminals that offer transportation facilities for natural gas, crude oil and petroleum products from the Middle East and Europe.

• The state plans to have modern mechanised cargo handling systems in all the new ports. Ten green field port projects as envisaged in the Port Policy, 2005, are now functional.

Source: “Ports of Gujarat” – sector profile 2008-09, Gujarat

Maritime Board (GMB)

Major ports

Private sector ports

GMB ports

Maroli

HaziraMagdalla

Dahej

Dholera

BhavnagarMithivirdi

PipavavSimar

Porbandar

OkhaSikka

JamnagarNavlakhi

KandlaJakhau

Positra

Khambhat

Mahuva

Jafrabad

Mundra

SutrapadaVansi Borsi

Port infrastructure in Gujarat



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Ports … (2/3)

• The state has a vast hinterland comprising key Northern and central Indian states.

• It also has a large external trade potential given its vast coastline.

• The intermediate and minor ports of Gujarat handled a total cargo of 152.8 million tonnes during 2008-09 showing an increase of about 4 per cent compared to the previous year.

• The total cargo handled by the Kandla Port has increased to 72.3 million tonnes during 2008-09 reflecting an increase of 11.3 per cent over the previous year.

Source: Socio-Economic Review of Gujarat, 2009-2010

Main ports of Gujarat

PipavavMagdalla

Hazira

Porbandhar

OkhaMundhra

Kandla

Sikka

Navlakhi

Jamnagar

Dahej



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• Many upcoming ports are being developed as captive ports to cater to specific company and industry requirements.

• The state undertakes fast-track clearance in establishment of ports through private participation.

• There is an increase in connectivity to non-major ports owing to the development of the Delhi-Mumbai Dedicated Freight Corridor.

• More than 4,800 ships and 1,000 sailing vessels visit the ports of Gujarat every year.

Source: “Ports of Gujarat”, sector profile 2008-09, Gujarat Government

Ports … (3/3)

Key private sector stakeholders in

Gujarat‟s ports sector

Gujarat Adani Port Limited

Peninsular & Oriental Steam

Navigation Company

Gujarat Pipavav Port Limited

Reliance Industries Limited

Maersk

Welspun

Petronet LNG

Shell



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Airports

International Airport

Domestic Airport

• The state has 13 domestic airports (the highest in any state) and one international airport at Ahmedabad.

• The SardarVallabhai Patel International Airport in Ahmedabad is India‟s eighth-busiest airport with an average of 150 aircraft movements a day. The airport is under renovation and once work is complete, the number of parking bays will increase from 15 to 45 and both the international and domestic terminals will have four aero-bridges each.

• In addition, there are domestic airports at Bhavnagar, Bhuj, Jamnagar, Kandla, Keshod, Junagadh, Porbandar, Rajkot, Surat, Vadodara, Zalawad and Mehsana.

• A feasibility study for an international airport at Fedra in Dholera (about 130 km away from Ahmedabad) has been completed in January 2010. Once ready, the airport could be useful for both passenger and cargo purposes.

Ahmedabad

Bhavnagar

Bhuj

Jamnagar

Rajkot

Vadodara

Mehsana

Porbandhar

SuratJunagadh

Zalawad

Keshod

Kandla

Airports in Gujarat



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Railways

Bhavnagar

Ahmedabad

Rajkot

Anand

Bhuj

Godhra

Porbandhar

Vadodara

Valsad

Key railway stations in Gujarat


• The state had a railway network of 5,309 km as of 2009. It comprises 3,100 km of broad gauge, 1,422 km of metre gauge and 787 km of narrow gauge.

• There are 21 major railway stations in Gujarat. The important stations are Ahmedabad, Anand, Bhavnagar, Bhuj, Godhra, Porbandhar, Rajkot, Vadodara (Baroda) and Valsad.



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32

Power and gas … (1/2)

Installed power capacity (MW)

Source: Central Electricity Authority

• As of March 2010, Gujarat had a total installed power generation capacity of 13,908.1 MW, which comprised 5,901.9 MW under state utilities, 5,513.7 MW under private utilities and 2,492.5 under central utilities.

• The installed power capacity in the state increased from 9,291.1 MW in 2005-06 to 13,908.1 MW in 2009-2010.

• There are 29 power stations supplying power to Gujarat, of which 24 are located in the state and five are located outside the state.

• Over 18,000 villages are supplied with 24-hour, three-phase electricity under the „JyotirgramYojana‟.

• Gujarat State Petroleum Corporation‟s (GSPC) gas company supplies piped natural gas (PNG) to nearly 59,709 domestic households, 370 commercial establishments and 551 industrial customers.


9,291.0 10,490.8 11,052.0

12,110.4

13,908.1

-

2,000.0

4,000.0

6,000.0

8,000.0

10,000.0

12,000.0

14,000.0

16,000.0

2005-06 2006-07 2007-08 2008-09 2009-10


33

Power and gas … (2/2)

• GSPC has holdings in over 42 oil and gas fields across India, in addition to exploration blocks in Australia, Egypt and Yemen.

• GSPC is known for its discovery of the largest gas reserve in India at the Krishna-Godavari Basin.

• Gujarat has a 2,200 km integrated gas-grid that is operated on an open access, common carrier principle.

Integrated gas grid for energy security

Commissioned

Under construction

Tendering

Existing LNG terminal

Proposed LNG terminal

Oil & gas reserves

Ankleshwar

Dahej

Hazira

Pipavav

Mundra Ahmedabad

Dholera

Mehsana

Kalol

PalejGandhar

BharuchIntegrated gas-grid

Current transmission 25 mmscmd*

Total length 2,200 km

Completed 1,420 km

Under construction 450 km

Planned expansion 330 km

Sources: “Beyond State Boundaries”, Government of

Gujarat 2008-09; mmscmd: million metric standard cubic

metres per day ; *includes 10 mmscmd of re-gassified LNG



34

Telecom and IT … (1/2)

• The state had 26.2 million GSM cellular subscribers and 787,710 internet/broadband subscribers in 2009.

• According to estimates by Telecom Regulatory Authority of India (TRAI), there were 32.4 million wireless connections and 2.1 million wire-line connections in Gujarat as of March 2010. The state had a a tele-density of 58.5.

• All district headquarters are provided with back-up support of transportable V-SAT terminals.

• The state also has the State Disaster Resource Network (SDRN), a database of disaster management related inventory.

• The Bhaskaracharya Institute for Space Applications and Geoinformatics (BISAG) has satellite communication facilities with a dedicated bandwidth.

Telecom infrastructure as of 2009

GSM cellular subscribers: 26,160,079*

Internet/broadband subscribers: 787,710*

Wireless connections: 32,349,149**

Wire-line connections: 2,081,793**

Post offices: 8,972

Telephone exchanges: 3,226

Telecom operators in Gujarat

• Vodafone Essar

• IDEA Cellular

• Bharti Airtel

• BSNL

• Reliance Communications

Source: Cellular Operators Association of India


Sources: Telecom Regulatory Authority of India, Ministry of

Communications & Information Technology, Socio-Economic

Review of Gujarat, 2009-2010

*As of June 2010

**As of March 2010


35

Telecom and IT … (2/2)

• Gujarat State Wide Area Network (GSWAN), world‟s second largest IP-based WAN connecting over 2,800 government offices.

• The state has the Secretariat Integrated Communication Network (SICN) with over 7,500 voice connections.

• There is facility for online redressing of citizen‟s grievances through the State Wide Grievance Attention [service on public] Grievances [by application of] Technology (SWAGAT).

• Integrated Workflow and Document Management System (IWDMS) streamlines documentation in government offices.

Gujarat State Wide Area Network (GSWAN)



36

Urban Infrastructure – water

• As of 2009,1,874 km bulk pipelines and about 100,000 km of distribution pipelines have been laid across the state.

• Of the state‟s18,594 villages, the water grid connects almost 9,600 villages.

• As of 2009, there are over 14,000 Pani Samitis(water committees).

• Water conservation schemes include:• 118,000 check dams• 55,900 bori bandhs (dams made of sand

bags)• Interlinking of 21 rivers in central and

North Gujarat through „Sujalam SufalamYojana‟.

• 18,000 deepened ponds.

• The Gujarat Water Users‟ Participatory Irrigation Management Bill, 2007, authorises farmers to constitute Water Users‟ Associations (WUA) for the management of canals handed over, after rehabilitation by the Government.

State-wide water grid

Source: “Beyond State Boundaries”, Government of Gujarat, 2008-09

Surface water 38,100 mcm*

Ground water 12,000 mcm

Total 50,100 mcm

* million cubic metres



37

Clean transport initiative through CNG and BRTS

• The state envisages replacement of conventional fuels by compressed natural gas (CNG) in all buses and auto rickshaws.

• 141 CNG stations already established. In Ahmedabad, CNG auto rickshaws have been made mandatory.

• There are1,181 CNG buses of Gujarat State Road Transport Corporation (GSRTC), 3,750 CNG private buses, 114,446 CNG auto rickshaws and 50,708 cars that run on CNG.

Ahmedabad BRTS map

Source: “Beyond State Boundaries”, Government of Gujarat, 2008-09

• The bus rapid transport system (BRTS) is being implemented jointly by the State Government, Gujarat Infrastructure Development Board (GIDB), Ahmedabad Municipal Corporation (AMC) and Ahmedabad Urban Development Authority (AUDA).

• Approved length: 88.5 km (Phase-I: 58 km + Phase-II: 30.5 km). Phase-I is already in operation. The entire project is to be completed by December 2010.



38

Other initiatives in urban infrastructure

River-front development

• Development around the rivers Sabarmati and Tapi have been undertaken to revitalise the city and improve existing infrastructure.

• It also envisages development of commercial, residential and recreational facilities on the river-front.

• The Sabarmati River Front Development Corporation honoured with the Prime Minister‟s Award for Excellence in Urban Planning and Design.

Other reforms

• Municipal accounting

• Solid-waste management

• Energy efficiency

• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 70 projects costing US$ 1.2 billion have been sanctioned for Gujarat.

• The projects have been sanctioned for completion between 2005-06 and 2009-2010. The key areas of development are water supply, sewerage, solid-waste management, storm-water drainage, mass-rapid transport system, construction of flyovers and water treatment.

• The GIDB has been constituted for conceiving infrastructure projects, developing and preparing them. GIDB also conducts pre-feasibility and feasibility studies for various projects.

JNNURM



39

Key public private partnership (PPP) projects

Project name Sector PPP typeProject cost

(US$ million)Stage

Hazira LNG terminal Ports BOOT 806.5 In operation

Dahej LNG terminal Ports BOOT 497.2 In operation

Mundra port Ports BOOT 467.6 In operation

Himmatnagar bypass Roads BOT-Toll 152.2 In operation

Gandhidham-Palanpur railway project Railways BOT-Toll 108.7 In operation

International Airport-Ahmedabad-Dholera Aviation - 543.1 In pipeline

Surendranagar-Pipapav railway project Railways BOT-Toll 88.0 In pipeline

Bhavnagar-Trapaj and Budhel-Vartej road project Roads BOT 50 In pipeline

Transport Nagar at Bhavnagar Roads BOT 10.9 In pipeline

Dahej-Bharuch gauge conversion Railways BOT-Toll 42.8 In pipeline

Kutch RO-RO terminal project Ports BOOT 20.6 In pipeline

Vadodara-Halol Toll road Roads BOT-Toll 38.0 In pipeline

Source: pppindiadatabase.com; BOOT – Build-Own-Operate-Transfer; BOT – Build-Operate-Transfer; RO-RO: roll-on roll-off



40

Literacy rates (%)

Literacy rate 69.1

Male literacy 79.7

Female literacy 57.8

• „Kanya Kelavani‟ is a state-wide girl child education campaign to increase enrolment ratio and decrease drop-out rates:

• It covers 28,346 primary schools.• It has resulted in increase in net-enrolment

ratio from 75 per cent to 98.98 per cent.• Total number of students enrolled in 2008

was 7.7 million, of which 3.5 million were girls.

• Around 33,410 girls have benefited from this fund.

• „Vidya LaxmiYojana‟ has been implemented to achieve 100 per cent enrolment and retention of girls in primary schools:

• Around 750,000 girls have been given the Vidya Laxmi Bond between 2003-04 and 2009-2010.

• „VidhyadeepYojna‟ has been implemented where in case of an unfortunate death of a child studying in the school, the parents or the guardians of the child are offered US$ 500 as an insurance amount. About 8.5 million students are insured under this scheme.

Gujarat‟s school education statistics as of 2008-09

Number of schools

Primary: 45,012

Secondary: 8,000

Higher: 915

Pupil-teacher ratio

All schools: 32

Primary: 32

Upper primary: 33

Net enrolment ratio Primary: 86.0

Upper primary: 41.9

Number of Teachers 238,030

Education sector … (1/2)

Source: Census of India, 2001

Source: National University of Educational Planning and

Administration, DISE, 2008-09



41

Education sector … (2/2)

Educational infrastructure as of 2009

• Universities: 29

• Medical colleges: 13

• Engineering : 54

• Diploma colleges: 57

Premier educational and research institutions in Gujarat

• Indian Institute of Management, Ahmedabad

• National Institute of Technology, Surat

• Indian Institute of Technology, Gandhinagar

• Sardar Vallabhbhai National Institute of Technology, Surat

• Institute of Rural Management (IRMA), Anand

• Mudra Institute of Communication, Ahmedabad (MICA)

• National Institute of Fashion Technology (NIFT),

Gandhinagar

• National Institute of Design, Ahmedabad

• Centre for Environment Planning and Technology,

Ahmedabad

• Central Salt and Marine Chemicals Research Institute,

Bhavnagar

Source: Gujarat Government

• „Sakshardeep‟ is a literacy campaign for adult education, under which 1.27 million adults had been educated until 2006.

• Society for Creating of Opportunity through Proficiency in English (SCOPE) is an initiative of the Government to make Gujarati youth proficient in business English.



42

Health infrastructure

Health infrastructure as of 2009

• Primary health centres: 1,084

• Sub-centres: 7,274

• Community health centres: 282

• Mobile care units: 85

• District hospitals: 23

• Referral hospitals: 409

• Rural dispensaries: 8,347

• Ayurvedic hospitals: 48

• Ayurvedic dispensaries: 493

Health indicators as of 2008

Birth rate (per 1,000 population)** 22.6

Death rate

(per thousand persons)**6.9

Infant mortality rate

(per thousand live births)**50

Source: Ministry of Health and Family Welfare, Sample Registration

System, 2008, Socio-Economic Review of Gujarat, 2009-2010

Key health schemes of Gujarat Government

Chiranjeevi scheme

• Introduced to reduce maternity-related deaths and infant

mortality; involves collaborations between government

and private sector specialists to facilitate safe deliveries

for the economically weaker sections.

Bal Sakha Yojna

• An initiative under the Chiranjeevi scheme.

• Provided facilities for proper check up of newborns and

infants by paediatricians. The main aim of the scheme is to

bring down the Infant Mortality Rate (IMR) and the

Maternal Mortality Rate (MMR).

Centre-aided health insurance scheme

• The scheme has been launched in five districts in Gujarat

and covers about 500,000 person with incomes-level in

the below poverty line (BPL) category.

• Total insured amount is about US$ 650 per family.

• The state has 1,084 primary health centres (PHC), 7,274 sub-centres, 282 community health centres (CHC) and 85 mobile healthcare units.



43

Cultural infrastructure

• Various dance forms of the state include dandiya raas, garba, garbi, rasaka, tippani and padhar.

• Many fairs and festivals are celebrated in the state such as Bhavnath mahadev mela, Dangs darbar, Vichitra mela, Dhrang fair, Trinetreshwar mahadev fair, Vautha mela, Shamlaji mela, Kutch mahotsav, Bhadra purnima, Kavant mela, Modhera (dance festival), Makar sankranthi, International kite festival (Uttarayan) and navrathri festival.

• Museums in the state include The Gandhi Smarak Sangrahalaya (Ahmedabad), Calico musuem of textiles (Ahmedabad), Vadodara museum (Vadodara), Maharaja Fatehsingh museum (Vadodara), Gandhi Museum (Bhavnagar), Kite museum (Ahmedabad), Watson museum (Rajkot) and the Lady Wilson museum (Valsad).

• Prominent stadiums in the state include the Sardar Patel cricket stadium (Ahmedabad), Moti Baghstadium (Vadodara), Indian Petrochemicals Corporation Ltd (IPCL) sports complex (Vadodara) and the Surat indoor stadium. Golf courses in the state include Gaekwad Baroda golf club (Vadodara), Gulmohar Greens golf & country club (Ahmedabad), Aalloa Hills golf resort (Ahmedabad), Kensvillegolf and country club (Ahemdabad), Cambay golf club (Gandhinagar), and an integrated golf course in Ganesh Housing Corporation (Ahmedabad).

• A world-class sporting infrastructure complex is coming up in Ahmedabad in 2011 at a cost of US$ 65 million. The facility which will incorporate a 25,000 seat stadium, is a collaboration between the Government of Gujarat and SE TransStadia Private Limited.



44

Industrial clusters … (1/2)

• The state‟s manufacturing industry is supported by 0.2 million MSMEs.

• Gujarat has 83 product clusters. The Cluster Development Scheme has been launched for furthering the growth of product clusters.

• Successful clusters include ceramics cluster at Morbi, brass- parts cluster at Jamnagar, fish-processing cluster at Veraval and power-looms cluster at Ahmedabad.

Number of clusters as per industry type

30

1310

7

6

17 Engineering

Textiles

Food Processing

Chemicals

Minerals

Others



45

Industrial clusters … (2/2)

• Gujarat has 202 industrial estates established by the Gujarat Industrial Development Corporation (GIDC) for specific sectors such as chemicals, electronics, gems, apparels and granite.

• The State Government has taken care to set up industrial estates on non-agricultural land after assessment of industrial viability.

Navsari

Ankleshwar

Morbi

PIPAVAV

Rajkot

Jamnagar

Valsad

Vadodara

Anand

Ahmedabad

Gandhinagar

Mehsana

Surendranagar

BhavnagarAmreli

DAHEJ

HAZIRA

KANDLA

Kachch

Okha

Kodinar

Sutrapada

MUNDRA

Surat

Soda ash and salt-based industries, cement and steel pipes

Agro Processing

Engineering and ceramics

Petroleum and brass parts

Soda ash and salt-based industries

Chemicals, Petrochemicals, Pharma, Textiles

Product clusters

Source: Industries Commissionerate, Government of Gujarat



46

Special economic zones

• As of July 2010, Gujarat had 47 formally approved SEZs, 13 in-principle approvals and 30 notified SEZs.

• Gujarat ranks first in terms of total area covered under SEZs in India. It is also a leading SEZ state with the highest geographical area of 27,125 hectares under SEZ development.

Gujarat‟s three operational SEZs are:

• Kandla SEZ

• SIR SEZ

• Surat Apparel Park

• It is the first state to formulate an SEZ policy, which includes flexible labour laws and exit options for investors.

• SEZs in Gujarat get a 10-year corporate tax holiday on export profit: 100 per cent for the initial five years and 50 per cent for the next five years.

Key sector-wise break up of SEZs

13

17

4

8

9

1 8

Multiproduct/Multiservices

Electronics/IT/ITES

Textiles and apparels

Pharma/Chemicals

Engineering

Port based multiproduct SEZsOthers

Source: Vibrant Gujarat 2009 summit



47

Key investment regions in Gujarat … (1/2)

• The area under the Delhi-Mumbai Industrial Corridor (DMIC) falling in Gujarat includes:

• 62 per cent of total area (18 districts out of 26)

• 74 per cent of population (37 million).

• Gujarat‟s share of the Delhi-Mumbai dedicated freight corridor (DFC) of 1,500 km is 38 per cent (564 km). The state‟s regions falling in this corridor are:

• The Ahmedabad-Dholera investment region

• The Vadodara-Ankleshwar industrial area

• The Palanpur-Mehsana industrial area

• The Bharuch-Dahej investment region

• The Surat-Navsari investment area

• The Valsad-Umbergaon industrial area

Haryana

Rajasthan

Gujarat

Maharashtra

Madhya Pradesh

Uttar Pradesh

Uttaranchal

Arabian Sea

Dadri

J.N.Port

End TerminalsDFC Alignment

DMIC region



48

Key investment regions in Gujarat … (2/2)

• Other regions include the Gujarat International

Finance-Tec City (GIFT), a collaboration between

Gujarat Urban Development Company Limited

(GUDC) and Infrastructure Leasing and Financial

Services Co Ltd (IL&FS). It is being developed as a

central finance and business district.Source: Industries Commissionerate, Gujarat Government

Other investment regions in Gujarat

• Petroleum, Chemicals and Petrochemicals

Investment Region (PCPIR), Dahej

• Special Investment Region (SIR), Dholera.



49

Major investments in the infrastructure sector

Infrastructure typeInvestments

(US$ million)

Power* 22,784.9

Shipping 10,742.1

Roads 3,557.9

Railways 2,661.9

Airports 1,773.8

• As of March 2010, over US$ 43.2 billion of investments have been made for ramping up Gujarat‟s infrastructure

• Over 53 percent of infrastructure-related investments have been made in the area of power generation and distribution.

• Apart from power, shipping, roads and railways are the other key infrastructure sectors attracting investments.

*Generation and distribution

Source: CMIE



50

Contents

Advantage Gujarat







51

Gujarat Industrial Policy, 2009

Vision: To facilitate investments in the state, generate employment and adhere to high quality standards

Key initiatives and objectives:• Creation of opportunities for vigorous industrial and economic activities in the declared backward talukas.

• Special investment regions: Convergence of industrial, social and urban infrastructure. Leverage the Delhi-Mumbai Industrial Corridor (DMIC) and the influence area in Gujarat.

• To promote and facilitate mega projects in the critical sectors to generate a multiplier-effect of employment creation and inclusive development in the state.

• Promotion of cluster development to ensure competitiveness and improvement of MSMEs.

• Promotion of industries such as textiles and apparels, agri-business, fisheries, gems and jewellery, IT/ITeS, ports and related industries by providing adequate thrust to the sector by way of developing specific package, which would make it an important catalyst for industrial and economic development of the state.

• To ensure that the state has a strong information dissemination system and the administration is industry-friendly in terms of quick responses to queries, application clearances, zero red-tape, availability of adequate land for facilitating industrial development, etc.

• To provide financial assistance for infrastructure development to new industrial estates in the focus sectors.

• Provide efficient logistics services for industrial growth.

• To augment the power requirement of the state.

• Enhancement of technical competence and manpower.

• Reward for adoption of new technologies, business sophistication and innovation.

Sector-specific policies … (1/14)

STATE POLICIES AND INCENTIVES


52

Gujarat Industrial Policy, 2009 (continued)

Incentives and concessions:

• In the focus sectors such as textiles and apparels, gems and jewellery, innovative projects, mega projects, informal sector, agri-business, fisheries, IT/ knowledge-based industries, port and related industries and power sector (non-conventional energy): Units having investment of US$ 217 million and employment of 2,000 will be defined as mega units. Whereas in core infrastructure sector, the units having investment of US$ 217 million will be treated as mega units.

• In the eventuality of mega projects requiring support of ancillary units and if the same is to be extended by small and medium enterprises (SMEs), then for setting up such units, GIDC would identify land and the incentives that are otherwise extended to the SME sector would be applicable to these ancillary units also.

• Financial assistance for IT units:• Special incentives for mega IT/ITeS projects (investment above US$ 10 million) creating employment above a

minimum threshold level.

• All new IT units are exempted from payment of electricity duty for a period of five years and exemption from power cuts.

• Stamp duty exemption to units in IT parks and IT SEZs.

• Financial assistance to hire experts in the areas of technology, marketing and finance for sick-units.

• Financial assistance for SMEs:• For participation in international trade fairs, State Government will partially defray the costs of rent, literature and

display materials.

• For industrial associations participating in international trade fairs, the Government will provide financial support.

• Venture capital funding for projects adopting innovative technology.

• Credit-linked financial support by way of interest subsidy to spinning, weaving, knitting, apparel and machine carpeting.




53

Gujarat Industrial Policy, 2009 (continued)

Other incentives and concessions:

• In the fisheries sector, incentives would be provided to trawlers that go for deep-sea fishing, beyond 100 meters depth contour.

• Cold storage plants would be set up on a large scale. For setting up such plants, GIDC can facilitate in identifying suitable land.

• Incentives for corporations, municipalities, women's groups and cooperatives to construct hygienic fish markets.

• The State Government intends to provide incentives for investments, which are directed towards enhancing the manpower skill levels and ensuring that the talent pool available in the state is in line with the industry requirements.




54

Power Generation Policy of Gujarat, 2009

Aim: To develop the state of Gujarat as a power-generation hub.

Key initiatives:

• To have adequate availability of power in the state for agriculture, households, industry and commerce.

• To ensure effective and efficient use of conventional fuels by the power-generation industry.

• To build power-generation capacity to encourage competition for procurement of electricity by state utility/distribution licenses.

• To encourage environment friendly and efficient power-generation technologies.

• The State Government to facilitate and assist project developers in identifying suitable locations, obtaining clearances, fuel linkage, port linkage and water supply.

• The State Government to facilitate the clearances and approvals for connecting the power plant to the grid sub-stations

• When the developer has arranged its own fuel without recommendation of the State Government, the Government shall have the right to purchase power from the power project, up to 10 per cent of installed capacity.

• Nominated agency of Government of Gujarat shall have the first right and not obligation for purchase of surplus power of SEZ.This provision shall be applicable to power station located in SEZ area having installed capacity up to 1,000 MW and in case theinstalled capacity is over 1,000 MW then also this provision shall apply up to 1,000 MW capacity only.

• When surplus power is available for shorter duration of one year or a lesser period, the nominated agency of Government may purchase such surplus power on short-term basis, on the mutually negotiated prices.

• When surplus power is available for longer duration of more than one year, the nominated agency shall have the first right and not obligation to purchase power through the competitive bidding process.




55

Solar Power Policy of Gujarat, 2009

Aim: To promote power generation of green and clean power in the state using solar energy.

Key initiatives:

• To put in place appropriate investment climate, that could leverage the clean development mechanism (CDM).

• Productive use of wastelands, thereby bringing in a socio-economic transformation.

• Promote R&D and facilitation of technology transfer.

• Establish core technical competence in professionals of the state to initiate and sustain the use and effective management ofnew applications.


• Solar Power generators (SPGs) installed and commissioned up to March 31, 2014 shall be eligible for incentives.

• Electricity generated from the SPGs and used for self consumption or sale to third party or licensees shall be exempted from payment of electricity duty.

• Exemption from demand cut to the extent of 50 per cent of the installed capacity of SPGs, assigned for captive use purpose.

• Electricity generated from a solar power project, shall be sold to the distribution licensees in the state at levelised fixed-tariff per unit.




56

Gujarat State Tourism Policy, 2003-2010

Aim: To undertake intensive development of tourism in the state and thereby increase employment opportunities.

Key initiatives:

• Special emphasis on event (festival) based tourism.

• Identifying and developing tourist destinations.

• Creating adequate facilities for budget tourists.

• Strengthening tourism-related infrastructure with the opening of new centres.

• Promoting projects in the areas of accommodation, eateries, entertainment, services, etc.

• Promoting tourism in the areas of religious and archaeology, heritage, wild life, coastal and beach, traditional art and craft, and adventure tourism.

• Creating entertainment theme parks to be considered as “Special Entertainment Zones”.

• Encouraging medical tourism.

• Provide for avenues to attract tourists who are interested in eco-tourism.

• Tourism sector has been identified as one with the highest employment potential industry with around 90 jobs created per US$ 2,000 of investment.

• Possible tourism products such as religious (pilgrimage), archaeology, heritage, wildlife, coastal and beach, traditional art and crafts, culture, corporate, adventure, and highway tourism to be conceived.




57

Gujarat IT Policy, 2006-11

Aim: Overall growth of IT sector in Gujarat.

Key initiatives:• Creating significant employment opportunities by training and developing skilled manpower.

• Facilitating information outlets at the doorstep of a common man.

• Making the government-citizen interface more effective, efficient and transparent.

• For imparting education, the Gujarat Institute of Information Technology is being set up at Gandhinagar.

• Setting up a high-tech Infocity with facilities of satellite earth station in Gandhinagar and hubs at Ahmedabad and Baroda.

• Plans to spend 1 per cent of the annual state budget on IT-related activities; to be progressively raised to 3 per cent.

• State to facilitate granting of SEZ status to IT industry and IT parks subject to the provision of the SEZ Act and rules.




58

Gujarat IT Policy, 2006-11 (continued)


• Capital subsidy at a rate of 25 per cent for the new-IT units on total eligible capital investment.

• IT units would be eligible to a turnover incentive at a rate of 5 per cent of the eligible annual turnover with a ceiling of US$ 100,000.

• Incidence of sales tax on computer hardware, peripherals, etc., would be reduced.

• A special connectivity incentive to be given where the Government would subsidise leased-line rental up to 500 km to an extent of 50 per cent of the lease-rentals.

• Special incentives for mega-IT projects creating employment for more than 1,000 persons for an IT unit and 1,500 persons for a ITeS unit.

• Financial assistance at the rate of 50 per cent of fixed capital investment in land, buildings and infrastructure facilities to IT park developers up to a maximum of US$ 510 billion.

• Stamp duty exemption on purchase of land for IT park developers.

• State Government would set up venture capital fund for development of IT services, IT software and IT products.

• This fund would seek support from national fund for IT-ventures development as proposed by the National Task Force.




59

Gujarat Port Policy, 2005

Aim: To promote Gujarat‟s share in ports.

Key initiatives:• The port policy seeks to enhance Gujarat‟s share in the national export-import sector.

• It also seeks to decongest existing ports on the western coast through efficient services to support domestic and international trade.

• Providing port facilities to promote export-oriented and port-based industries.

• Encouraging shipbuilding, ship-repairing and manufacturing facilities for cranes, dredgers and floating crafts.

• Promoting coastal shipping for passengers and cargo traffic between various locations within and outside Gujarat.

• Supporting power plants by offering exclusive facilities for import of fuels.

• Encouraging private sector investment in minor and intermediate ports as well as new port locations.

• Providing port facilities to promote export-oriented industries and port-based industries entailing almost 50 per cent of total industrial investment.

• Development of new port sites.

• Privatisation of services such as lighterage, dredging, piloting, tug-towing and other essential utilities.




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Gujarat State Mineral Policy, 2003

Aim: To explore opportunities in the mineral resources of the state.

Key initiatives:• Invite participation from the private sector for mining and exploration.

• Prioritise exploration of lignite to meet the state‟s power demand and the fuel requirement of industries.

• Creation of a databank by compiling geological and technical details of state and central government agencies in geological survey and mineral exploration.

• Implement environment assessment norms that would be constantly monitored for major minerals resources on lease.

• Promote the use of modern technology in mining.

• To enhance the skills of miners, labourers and technicians working in the mines of minor and major minerals, training programmes for mine-safety improvement, maintenance of ecological equilibrium and prevention of mine wastage to be conducted in country's well-known institutes.




61

SEZ Policy of Gujarat, 2002

Aim: To bring more investment and export oriented units in the state.

Salient features:

• SEZs would be declared as industrial townships (notified area) in the state and they would be managed by a development commissioner.

• Power supply can be provided by independent power producers/distributors in the SEZ with permission of SEZ authority.

• SEZ units will be exempted from electricity duty for period of 10 years from the date of production and rendering of the services.

• SEZ units are allowed to set up their own captive power plants.

• The SEZ Authority would establish grid connectivity to ensure uninterrupted power supply in case of power failure.

• Eighty industries have been exempted from obtaining „No Objection Certificate‟ by the Gujarat Pollution Control Board.

• All environment related clearance applications would have to be submitted only to the Development Commissioner of SEZ.

• SEZ units would be required to file consolidated annual report on several laws relating to labour, wages and compensation to the development commissioner.

• Units in SEZ would be declared as "Public Utility Services" under the Industrial Disputes Act.

• Tax incentives: exemption on stamp duty and registration charges on loan agreements, credit deeds, mortgages and transfer of land in SEZ for industrial purpose.

• Transactions within SEZ would be exempted from all sales taxes of State Government including VAT and purchase tax.

• Good and services transacted from domestic tariff area to SEZ would be exempted from sales and other state taxes but would be taxed if transacted from SEZ to domestic area.

• SEZ developer would be granted permission to develop water supply and distribution system for constituent units.




62

Gujarat Road Policy

Aim: To facilitate investments in the road sector.

Key objectives and initiatives:

• First state in India to have a law governing build-own-transfer (BOT) transactions.

• Provide connectivity to all villages by building all-weather roads to improve quality of life in rural areas.

• Develop an efficient road system to ensure smooth and uninterrupted flow of goods and passenger traffic.

• Constantly upgrade technology by deploying superior and quicker construction, and maintenance methods.

• Induct scientific principles of resource allocation for maintenance and new construction programmes.

• Set high standards for road safety and the travel comfort of passengers.




63

Gujarat Agro Industrial Policy, 2000

Aim: To make Gujarat the destination of choice for investors and processors, both global and domestic.

Key initiatives:

• Creation of a world class supply-chain

• Promotion of infrastructure important for agro industry development

• Close interface between research, industry and farmers in the agri-sector

• Providing assistance to small-scale agro based units to improve their competitiveness in global markets and increase exports of value-added agri-products.

• The policy to be implemented by the Gujarat Agro Industries Corporation Limited, the nodal agency to promote and develop agro and food processing industry in Gujarat.

Fiscal Incentives:• Tiny, small, medium and large agro industrial units are given 6 per cent back-ended subsidy for five years on the interest on

term loan, subject to a ceiling of US$ 200,000.

• Agri-infrastructure projects to be given 6 per cent back-ended subsidy for five years on the interest on term loan, subject to a ceiling of US$ 900,000.

• Individuals/institutions to be reimbursed 50 per cent expenditure of the cost of preparation of a project report for setting up an agro-industrial unit, subject to a ceiling of US$ 10,000.

• Specific crop-development institutes/centre of excellence to be given 50 per cent of the initial capital investment as assistance, subject to a ceiling of US$ 10,000.

• Small scale and tiny agro industrial units to be given assistance up to 50 per cent of the cost incurred for obtaining quality certification mark from an institute recognised by the State Government or Central Government, subject to a ceiling of US$ 10,000.

• Private, government or cooperative sector units to be reimbursed up to 50 per cent of the cost of patent registration, subject to a ceiling of US$ 10,000.




64

Gujarat Agro Industrial Policy, 2000 (continued)

• A subsidy of 25 per cent to be provided on air freight for exports of edible products; 50 per cent subsidy to be provided on theactual cost of sending samples and the cost of getting samples passed for export of edible agro items, subject to a ceiling of US$ 1,087.

• A subsidy of 50 per cent subsidy to be provided on the cost of special research for improvement in quality of agriculture produce, undertaken in research and development centre established by any institute or industrial enterprise, subject to a ceiling of US$ 40,000.

• The State Government through Gujarat Agro Industries Corporation shall undertake equity participation ranging from 11 per cent to 26 per cent of promoter‟s contribution in select projects to facilitate private sector investments.

• The State Government to provide government land, including agriculture farms, on long lease basis at concession rates to agroindustries and agri-infrastructure projects including centres of excellence.

• The State Government to create a venture fund for agro industries in association with financial institutions and banks.

• Incentives to be given to new units as well as existing units undertaking technology up-gradation, modernisation, expansion or diversification.

• Interest subsidy to be granted towards interest on term loan from nationalised banks and financial institutions recognised by the Reserve Bank of India.




65

Company logos cited in this section are registered trade marks of the respective companies

Contents

Advantage Gujarat







66

• The agro sector including animal husbandry, contributed 15 per cent to Gujarat‟s GSDP in 2008-09.

• Cotton, Groundnut, Bajra, Paddy, Maize, Jowar, Sesamum, Castor, and Tur (Pigeon pea) along with fodder and vegetables are the major kharif crops of the state. Normal area under kharif cultivation is 0.9 million hectares.

• In 2009, the state‟s marketing network consisted of 207 market committees, 195 main yards and 206 sub-market yards.

• Gujarat Agro Industries Corporation (GAIC) promotes agricultural activities at the ground-level and aids the development of agro industries in the state

Source: Socio-Economic Review of Gujarat,

2009-2010

Key Players

• Amul

• Adani Food Products

• Godrej Agrovet

• McCain Foods

• Parle

• Ramdev Food Products Pvt Ltd

• Rasna

• Vadilal

• Vimal Agro Products Private Limited

Agro and food processing

BUSINESS OPPORTUNITIES


67

• Gujarat‟s dairy sector consists of 13 district milk producers‟ unions.

• It has a network of 12,991 milk cooperative societies with 2.5 million members as of 2009.

• The total milk production in Gujarat was 8.4 million tonnes in 2008-09.

• The National Dairy Development Board in Anand is involved in promoting, financing and supporting milk-distribution organisations across India.

• GCMMF, a cooperative dairy giant, sells Amul and Sagarbrands of dairy products through 500,000 unorganised retailers and 3,000 distributors.

• GCMMF registered a turnover of US$ 1.1 billion in 2006-07 to become the first billion-dollar cooperative in India. GCMMF recorded a turnover of US$ 1.7 billion in 2009-2010.

Anand

Ahmedabad

Gandhinagar

Sources: “Estimates of milk production”, National Dairy

Development Board

Key districts in the dairy sector

Agro and food processing – the dairy industry



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Agro and food processing – company profiles … (1/4)

Amul • The Anand Milk Union Limited (AMUL) was established in 1956 in Anand, Gujarat.

• Amul had revenues of US4 1.4 billion during 2009-2010.

• A market leader in butter, whole-milk, cheese, ice cream, dairy whitener, condensed milk, saturated fats and long-life milk.

• Daily average collection of 8.4 million litres of milk from 13,328 village societies in 2008-09.

Adani Food

Products

• Manufacturers and exports spices (ground, blended, whole) and pickles.

• The company is a star-export house certified by the Directorate General Of Foreign Trade (DGFT).

• Head office at Rajkot and factory at Metoda (near Rajkot).



http://en.wikipedia.org/wiki/Image:Amul-logo-2006-01-18.gif

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Godrej Agrovet

(GAVL)

• GAVL, part of the Godrej Group of Industries, is a diversified agribusiness company with interests in animal feed, oil palm plantations, agrochemicals and poultry.

• GAVL has 45 manufacturing facilities across India, a network of 10,000 rural distributors/dealers and over 1,900 employees.

• GAVL covers 35,000 hectares of palm plantations in Tamil Nadu, Andhra Pradesh, Goa, Karnataka, Orissa, Gujarat and Mizoram.

• Has a plant at Valia in Gujarat.

McCain Foods • Privately-owned, multinational leader in the frozen food industry with a revenue of US$ 7 billion in 2009.

• World's largest producer of french fries and potato specialties; food products include appetizers, pizzas, vegetables, desserts and other frozen foods

• Over 55 production facilities spread across six continents, supported by over 20,000 employees.

• Aims to promote contract farming and buys potatoes from over 100 farmers, spread over Anand, Borsad, Palanpur and Deesa in Gujarat

• 2,000 acres of drip irrigation, introduced by McCain in Gujarat for potato farming. Manufacturing facility at Mehsana.



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70


Parle • India's largest manufacturer of biscuits, confectionary and fruit juices, for almost 80 years. Revenue of US$ 0.9 million in 2009-2010.

• Brands include Parle-G, Krackjack, Monaco, Hide and Seek, Poppins, Melody and Mango Bite.

• Confectionary factory at Surendranagar, franchisee (Bailey) factory at Ahmedabad.

Ramdev Food Products

Pvt Ltd

• Established in 1965 at Ahmedabad. Products include powder spices, whole spices and snacks.

• A government-recognised export house with an international network in 10 countries.

• Cleaning and processing capacity of more than 60,000 kg per day.

Rasna • Started in 1984. Had 93 per cent market-share in Indian soft-drink concentrate market in 2009.

• Wide range of products in processed-foods category such as fruit jams, energy sports drink powder, fruit cordial, rose syrup and ice-tea.

• Largest capacity in Asia to make powder concentrate with seven facilities spread across India.

• Based in Ahmedabad.



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Vadilal • Established in 1907 at Ahmedabad. Manufactures ice-creams and frozen desserts.

• Exports processed products.

• Revenue of US$ 35 million in 2009-2010.

• Two manufacturing plants at Gujarat (in Ahmedabad and at Pundhra in Gandhinagar district).

Vimal Agro Products

Private Limited

• Set up in 1975 at Bardoli in Gujarat.

• The company manufactures and exports over 80 different food products ranging from canned vegetables, fruit pulp and slices, pickles, chutney, papads and ready-to-eat foods.

• The company has also entered the processed, cleaned and packed pulses, rice and fruit juices market.



http://www.vimalagro.com/brand.php

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Textiles and apparel … (1/2)

• In 2008-09, Gujarat was the highest exporter of cotton in India with 60 per cent exports. It was also the highest contributor of man-made fibre (31 per cent) and man-made filament yarn (38 per cent) in the country.

• The state contributed 12 per cent to national textile exports in 2008-09.

Key Players

• Alok Industries

• Arvind Mills

• Ashima Group

• Chiripal Group

• Digjam

• Indian Rayon

• Dinesh Mills

• Garden Silk Mills Limited

• Ginni Filaments

• Gujarat Ambuja Exports Limited

• Jindal Worldwide Limited

• Mafatlal Industries Limited

• Indian Rayon

• Raymond

• Reliance Industries Limited

• Vardhman Group



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Textiles and apparel … (2/2)

• Over 40 per cent of the country‟s art-silk fabric is produced in Surat. Gujarat is the largest producer of denim in India (65 to 70 per cent) and the third-largest in the world.

• Textiles account for 21 per cent of total employment in the state. In 2008-09, the state contributed 33 per cent of mill-made fabric and 25 per cent power-loom fabric to the total fabric produced in the country.

Area Textile clusters

Ahmedabad

Cotton and blended fabric, denim,

made-ups, ladies dresses, textile

machinery and spare parts.

Surat

Art-silk fabric, synthetic textiles, jari

manufacturing, embroidery, textile

machinery and spare parts.

UmargamModern power looms, synthetic suiting

and shirting.

Jetpur Hand printing and processing units.

Manavadar Cotton ginning

Kutch Textile handicrafts



74

Alok Industries • Fully integrated textile company established in 1986.

• Over the years, the company has expanded into weaving, knitting and processing of home textiles and garments.

• The company has entered the domestic retail segment through a wholly-owned subsidiary, Alok Retail India Limited.

• Manufacturing units for processing and manufacturing made-ups and terry towel at Valsad.

Arvind Mills • One of the top-three producers of denim in the world and largest producer in Asia.

• Product line includes fabrics (denims, shirtings, khakis and knitwear) and garments.

• Asia‟s first fabric-manufacturing unit to receive an ISO-14001certification.

• Has the denim and voiles divisions at Ahmedabad; shirting, khakhi and knits divisions at Gandhinagar.

Ashima Group • 100 per cent cotton-fabric manufacturers and a vertically-integrated group with a turnover of over US$ 135 million during 2009.

• Registered office at Ahmedabad.

• Exports fabric to over 45 countries, markets to over 150 Indian garment exporters.

Chiripal Group • Established in 1972. Business areas include textiles, petrochemicals, chemicals and auxiliaries, education and infrastructure.

• Corporate office at Ahmedabad, textile and petrochemical units at Ahmedabad.

Digjam • Part of the S.K. Birla Group, the company was established in Jamnagar, Gujarat in 1949.

• The company manufactures fabrics for suiting and casual wear.

• It has restructured its business portfolios to focus on textile manufacturing and marketing of fabrics and ready-to-wear clothing under its own brands.

Textiles and apparel industry – company profiles … (1/4)



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Dinesh Mills • Composite textile mill manufacturing menswear, women‟s wear and kids wear.

• Manufacturing units in Gujarat at Vadodara (Baroda) and Ankleshwar.

• Exporting to countries such as the US, Canada, Australia, Europe, Middle-East and Far-East.

Garden Silk Mills

Limited

• The company is a part of the Garden Vareli Group. Incorporated in 1979. Revenue of over US$ 360 million in 2009-2010.

• Produces polyester chips/melt, polyster filament yarn and fabric.

• Two plants at Jolwa and Vareli in Surat.

Ginni Filaments • Leading integrated manufacturer of cot

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