Industrial Infrastructure

SECTOR PROFILE

• Special Investment Regions (SIRs)

• Special Economic Zones (SEZs)

• Industrial Parks (PPP)

• Opportunities

Table of Contents

SPECIAL INVESTMENT REGIONS (SIRs)

01

SPECIAL INVESTMENT REGIONS (SIRs)

02

• Gujarat is the 1st state in the country to enact the SIR act in 2009

• 13 SIRs spread over ~ 3600 sq.km. are underway

• Out of the 13 SIRs, 7 SIRs have been notified i.e.:

- Mandal-Becharaji

- PCPIR

- Dholera

- Halol – Savli

- Santalpur

- Navlakhi

- Aliyabet

• Out of these, development of Mandal - Becharaji, PCPIR, and Dholera is on fast track

ANJAR

SANTALPUR

VIRAMGAM

NAVLAKHICHANGODAR

HALOL SAVLI

OKHA DHOLERA PCPIR

ALIYABET

PIPAVAV

SIMAR

Indicative map of SIRs in Gujarat, not to scale

Notified SIRs

Other Proposed SIRs

MANDAL-BECHARAJI

REGULATORY AND POLICY FRAMEWORK

03

SIR Act 2009

It enables the State Government to establish, develop, operate and regulate SIRs

The Government is empowered to declare Investment Region or Industrial Area

A 4-tier administrative mechanism is set up for establishment, operation, regulation and management

SIR to have an area of more than 100 sq. km. and the Industrial Area will be more than 50 sq. km

The administrative mechanism comprises:

• An Apex Authority (GIDB) – highest policy making body. It acts as the single window system and the first contact for setting up any economic activity or amenity in the SIR

• Regional Development Authority (RDA) for each SIR – to address ground level issues of development & regulation. The RDA will make its own regulations for building, construction and development.

• Project Development Agency – the Government has already formed such a project development company viz. Gujarat Industrial Corridor Company (GICC)

• Project specific SPVs

It provides an effective framework for private sector participation in infrastructure by drawing upon the Gujarat Infrastructure Development (GID) Act – 1999

SUMMARY OF NOTIFIED SIRs

04

Region Area (sq. km.) Proposed industries

Dholera 879 Knowledge based industries (biotechnology, IT/ITES, education and training), light manufacturing (textiles, electronics, leather, toys, ceramic), engineering

Becharaji – Mandal 509 Automobile industry, heavy engineering, light engineering (incl. metal & alloy product), electronics, service & ancillary, agro & food processing industry, ceramics & clay, non polluting industry (incl. information technology), logistics, precision engineering, wind power equipment manufacturing, solar power equipment manufacturing, electronic systems design and manufacturing (ESDM) and institutional & knowledge centre, tourism

PCPIR 453 Refinery downstream products, high performance chemicals, pigments and coating products, nanotechnology, bio- refineries, mineral resource based products

Halol-Savli 123 Engineering, automobile ancillaries, engineering plastics, electrical and electronics

Santalpur 186 Agro based (spices and seed processing, vegetable and fruit processing, dairy, cotton ginning), contract farming, solar power, logistics

Navlakhi 182 Ceramic, engineering & automobiles, food processing and electronics, textile, non polluting chemicals, ceramics and cement.

Aliyabet 169 Entertainment (eco zone, film city, amusement zone, golf course), aquaculture and marine engineering

SUMMARY OF OTHER SIRs

05

Region

Changodar 319 Agro based, steel & metal, plastic, pharmaceutical, biomedical, and oil & gas

Anjar 237 Port and port based industries, wood based, mineral & agro based, marine & salt industry and engineering

Okha 206 General manufacturing, pharmaceutical, CRO, biotechnology and bio-pharma, auto and auto - ancillaries, mineral based, tourism, education: marine biological studies, petrochemical studies

Pipavav 145 Logistics based industries, pre-cast structure, textile (only spinning), thermal power plant, ship building, and iron & steel

Simar 84 Auto and auto components, heavy engineering, electronics,engineering plastics, agri, pharma & biotechnology, non polluting chemicals, cement and food processing

Viramgam Under review, GoG

Proposed area (sq. km.) Proposed industries

DEVELOPMENT OF SIRs – STATUS

06

* Other Studies as mentioned below have also been conducted at Dholera

1. Seismic Micro - Zonation Study2. Water Vulnerability & Flood Protection Study

-

Stage of Development

PCPIR Dholera*Halol-Savli

Santalpur Aliyabet Mandal -Becharaji

Navlakhi Changodar Pipavav Viramgam Okha Simar Anjar

Selection of Consultants

Preparation of Feasibility Report and Concept Plan

Notification

RDAs Notification

Detailed Development Plan

EIA Study

Operationalised

CompletedSent to

GovernmentIn Process

Under

Progress

SPECIAL ECONOMIC ZONES (SEZs)

07

SPECIAL ECONOMIC ZONES (SEZs): AN OVERVIEW

08

• Gujarat has 16 SEZs (3 functional and

13 notified and operational), covering

an area of 17,295 hectares.

• These SEZs comprise of industries in

several sectors such as Apparels,

Pharma & Biotechnology, Engineering,

IT, Power, Handicraft/Artisan, Gems &

Jewellery etc.

• ~ 50% of land under SEZs in India is in

Gujarat i.e. ~ 30,000 hectares

• Gujarat's SEZs contributed ~47% to

India's SEZ exports (during 2010-11)

• Dahej SEZ Ltd. stood 26th among the

world's top 50 'free zones' in a survey

of 600 free zones across the world

conducted by the prestigious FDI

Magazine. (2012)

Status of SEZs in Gujarat

Functional SEZ beforeenactment

Notified and operational*

Notified SEZFormally approved SEZ

In-principle approved SEZ

20% 5%24%

29%22%

* LOA issued by GoI to the units in SEZs is considered as Notified and operational

Sectoral spread of SEZs in Gujarat

Textile & Apparel

Electronics/IT/ITES

Pharma/Chemicals

Engineering

Others

Multi-product/Multi services

33%18%

7%

22%9%11%

SPECIAL ECONOMIC ZONES (SEZs): AN OVERVIEW

09

• There are 16 operational SEZs (3 functional and 13 notified and operational):

- 6 Multiproduct SEZs

- 3 Engineering SEZs

- 2 Apparel SEZs and

- 1 each in Electronics, Gems & Jewellery, IT & ITeS, Pharma and Non Conventional energy

• Kandla SEZ (1000 acres) is promoted by Central Government and has 175 operational units

• Mundra Port & SEZ is the largest SEZ spread over 6,178 hectares followed by Reliance Jamnagar Infrastructure Ltd. spread over 1,764 hectares

Operational SEZs

Apparel

Engineering

Electronics

Gems & Jewellery

IT/ITES

Multi-product

Pharma

Non Conventional Energy including solar Energy eqpts/cells

6% 6% 13%19%

6%6%6%

38%

SEZ INSTITUTIONAL FRAMEWORK

10

Special EconomicZone

Development Commissioner • Grant all local and state level clearances etc. delegated by the Central/ State Government.• Monitor such approvals, licenses, registrations etc.• Make town planning regulations

Board of Approval• Approval of proposals to set up SEZs• Approval of “authorized” operations in an SEZ• FDI approvals to Developers, Units• Approvals for infrastructure provision (through co-developers , etc.)

Approval Committee• Approve imports of goods and services into the SEZ• Approve proposals for establishment of SEZ units• Allow foreign collaborations/ FDI proposals duly cleared by the Board of Approval• Monitor compliance by SEZ Developer, units

Township Authority• May be appointed by the State Government, with powers and functions as may be prescribed

Developer• • Prepare development plan• Demarcate and develop sites • Allocate and transfer plots, buildings• Regulate the erection of buildings in accordance with the plan• Develop, operate, maintain infra• Demarcate Zone Boundary

Planned development of SEZ

Co-developer• Provider of infrastructure facilities

Appropriate Authority• Customs administration

SEZ Authority• Responsible for promotion, development and functioning of the zones in the state

SEZ ACT 2005

11

SEZ Incentives

• Tax Incentives – State & Central

• Corporate tax holiday on export profit – 100% for initial 5 years and 50% for the next 5 years thereafter and 50% of the ploughed back export profit for next 5 years

• External commercial borrowing by SEZ units up to US D 500 million in a year without any maturity restriction through recognized banking channels

• Indirect Tax Incentives (Exemptions)

• Customs duty

• Excise duty

• Central sales tax

• Service tax

• Single window clearance for Central and State level approvals

• Exemption from State VAT and other levies as extended by the respective State Governments

For Developers of SEZs

• 100% tax holiday for a period of any 10 consecutive years out of 15 years beginning from the year in which the SEZ is notified

• Exempt from dividend distribution tax

• Full freedom in allocation of developed plots to approved SEZ units on purely commercial basis

INDUSTRIAL PARKS

12

INDUSTRIAL PARKS : OVERVIEW

13

• Gujarat Industrial Policy 2003 identified infrastructure development as a priority and hence for the first time Industrial Parks were developed on PPP.

• Gujarat has 27 private parks developed under Industrial Policy 2003

• 14 parks are Multiproduct Industrial Parks and 10 are Textile Parks

• Majority of these parks are in Ahmedabad district (7 parks) and Surat district (6 parks)

• Realizing the growing importance and increasing need for such infrastructure, 'Scheme for financial assistance to Industrial Parks on PPP' was introduced as part of Industrial Policy 2009.

• Government has amended the Financial assistance scheme for Industrial Park development by Private Institution. They have introduced support for “Link Infrastructure” in the scheme. There are 20 proposals for development of parks under this scheme.

District wise No. of Parks

Ahmedabad

Gandhinagar

Surat

Kheda

Valsad

Junagadh

Anand

Vadodara

Mehsana

Bharuch

4% 4%

26%

22%

4%11%4%

4%

18%

3%

Sector wise Parks

Pharmaceuticals

Textile

IT/ITeS

Industrial Park

52%

4%

37%

7%

INDUSTRIAL POLICY 2009SCHEME FOR ASSISTANCE TO PRIVATE INDUSTRIAL PARKS

14

* Subject to approval of State Level Approval Committee

Objective of Scheme

• To identify the need to promote and encourage Industrial Parks by Private Institutions which aim at upgrading and improve the state of the Park

Quantum of Assistance

• Industrial Park/ Estate will be provided an amount up to Rs. 10 crore for ‘link infrastructure’

• Developer of the park will be eligible for exemption from payment of stamp duty on purchase of land for the park. Whereas the units in the industrial park will be eligible for 50% exemption of stamp duty

Definition of “Link Infrastructure”

• The park will be required to have minimum internal infrastructure facilities; the support will be only for Link infrastructure which includes:

• Road (incl. toll-road), bridges, runways and other air port facilities

• Transmission or Distribution of power by laying a network of new transmission or distribution lines of electricity

• Telephone lines, telecommunications network

• Pipelines for water, crude oil, slurry, waterways, port facilities, waste water/ solid waste pipelines

• Railway tracks, signaling systems

• Gas Pipeline

Conditions

• The Industrial Park should be suitable for setting up min. 30 industrial units in at least 100 acres

• Expansion or modification/ modernization of existing parks shall not be eligible

*

OPPORTUNITIES

15

16

SECTOR SPECIFIC OPPORTUNITIES

Engineering

• Setting up industry in Greenfield precision engineering clusters being planned by GIDC at 5 locations i.e. Jamnagar, Halol, Sanand, Lodhika, and Mandal

• Centres of Excellence will be also be developed in each of these clusters

Technical Textile

• Textile market in Gujarat is estimated to become ~USD 25 billion by 2017 and the growth is envisaged to be driven by Technical Textiles

• 2 new Technical Textile zones will be developed in Ahmedabad and Surat district to drive this.

• Government will also set up 2 new Composite Centres for the development of Technical Textiles in Ahmedabad (existing centre in Ahmedabad to strengthened) and Surat district.

Auto

• Auto clusters will be promoted in Rajkot, Halol, Sanand and Mandal

Specialty Chemicals

• Chemical industry in Gujarat has the potential to reach ~USD 70 billion by 2017 and contribution of Specialty and Fine Chemicals will be doubled by then.

• Government plans to develop 3 speciality chemical zones in Jambusar, Padra and Dahej

• Centres of Excellence will also be developed in each of these clusters

Gems & Jewellery

• Upcoming gems & jewellery clusters on PPP mode at Bhavnagar & Sanand

KEY CONTACTS

17

Mr. Maheshwar Sahu, IASPrincipal Secretary (Industries & Mines)

Industries & Mines DepartmentPh.: +91 79 2325 0703 secimd@gujarat.gov.in

www.imd-gujarat.gov.in

Mr. Kamal Dayani, IASIndustries Commissioner

Industries CommissioneratePhone: +91 79 23252683, Fax : 91(79)232 52683

comind@gujarat.gov.inwww.ic.gujarat.gov.in

Mr. B.B. Swain, IASVice Chairman & Managing Director

Gujarat Industrial Development CorporationPhone: +91 79 2325 0583, Fax: +91 79 2325 0587

vcmd@gidcgujarat.orgwww.gidc.gov.in

Mr. A.K. Sharma, IASChief Executive Officer

Gujarat Infrastructure Development BoardPhone: +91 79 23232701, Fax: +91 79 23222481

ceo@gidb.orgwww.gidb.org

ndHead Office: Block No. 18, 2 Floor, Udyog Bhavan, GH-4, Sector 11, Gandhinagar 382 010 Gujarat, INDIA Phone: +91-79-23250492/93 Fax: +91-79-23250490

www.indextb.com, www.ic.gujarat.gov.in E-mail: indextb@indextb.com Regional Office: A-6, State Emporia Building, Baba Kharak Singh Marg, New Delhi 110 001, INDIA

Telefax: 011-23747002, 23360049 E-mail: indextbnd@indextb.com

For more details and online registration, log on to www.vibrantgujarat.com

Exhibition PartnerNational Partner Knowledge Partner

Relationship Partner Airline Partners