gujarat - ibef · bharuch infrastructure status gujarat september 2009 ... • all district...

GUJARATSeptember 2009

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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 September 2009

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The focus of this presentation is to discuss…

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Gujarat

Overall state competitiveness

Gujarat‘s economy and socio-economic profile

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A snapshot of Gujarat

• On May 1, 1960, Gujarat was created out of the 17

northern districts of the former state of Bombay.

• Located on the western coast of India, it has the

longest coastline in the country at 1,600 km.

• The state has a population of approximately 50.7

million (5 per cent of India) and an area of 1,96,024

sq km (6 per cent of India).

• It is bounded by the Arabian Sea to the west and

south west, and by Pakistan in the north.

• The state is flanked by the states of Rajasthan and

Madhya Pradesh towards the north east and east,

and by Maharashtra and the Union Territories of

Daman, Diu and Nagar Haveli towards the south.

GujaratECONOMY AND SOCIO-ECONOMIC PROFILE

September 2009

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A snapshot of Gujarat

• Gandhinagar, the capital city of Gujarat, is located close to Ahmedabad, the commercial capital.

• It has diverse climatic conditions with mild and pleasant winters, and hot and dry summers and

heavy monsoon.

• The state currently has 26 districts, with the latest district, Tapi, being constituted in 2007, from

Surat.

ECONOMY AND SOCIO-ECONOMIC PROFILEGujarat September 2009

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Socio-economic snapshot

Source: ―Socio-Economic Review Gujarat State 2007–2008‖, Directorate of Economics & Statistics, Pages 3, 48


Demographic indicators

Population density (2001) 258 per sq. km.

Rural population (%) 62.64

Urban population (%) 37.36

Decadal growth rate (%) 22.66 (1991–2001)

Birth rate 23.5 (2006)

Death rate 7.3 (2006)

Natural growth rate 16.2 (2006)

Sex ratio 920 females per 1,000 males (2001)

Effective literacy rate 69.14% (2001)

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Tertiary sector highest contributor to Gujarat‘s economic basket

Economic indicators

Growth trends in Gross State Domestic

Product (GSDP)

• GSDP was US$ 61 billion (E) at current prices in

2007–08

• GSDP growth for 2006–07 was 15.81 per cent

• Gujarat has set the highest growth target of 11.2

per cent for the Eleventh Five Year Plan

Composition of GSDP as per economic activity

Source: ―Socio-Economic Review Gujarat State 2007–2008‖,

Directorate of Economics & Statistics, Pages 5,7


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Sectoral contribution to GSDP

• Tertiary sector — highest contributor to GSDP

• Manufacturing sector — a key driver of Gujarat‘s economy


From revenue deficit to revenue surplus (US$ mn)



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Increase in per capita income (at current prices)

(1US$ = INR 45.24 for 2006-07 and 44.27 for 2005–06)



Per capita Income

• Per capita income of Gujarat in 2006–07 was US$ 829.6, higher than the national average of US$ 655.2



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Socio-economic profile of Gujarat

Employment distribution

• Manufacturing accounts for largest share of

employment across industries in Gujarat.

• Employment in public sector establishments was

at 1.75 million in June 2007.

• Employment in the private sector was at 1.8

million in June 2007.

• The public sector employed 18.66 per cent and

the private sector employed 10.21 per cent of

women in June 2007.

Employment distribution across sectors


Directorate of Economics & Statistics, Page 60


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Infrastructure status

State policies and incentives

Business opportunities

Doing business in Gujarat


Gujarat‘s economy and socio-economic profile


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The state has one of the strongest port infrastructures in India

• 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 (79.84 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 cost-

efficient transportation of natural gas, crude oil and

petroleum products from the Middle East and

Europe.

Source: ―Ports of Gujarat‖, sector profile 2008–2009, Gujarat

Maritime Board (GMB), Pages 10, 11

Major ports

Private sector ports

GMB ports

Maroli

HaziraMagdalla

Dahej

Dholera

BhavnagarMithivirdi

PipavavSimar

Porbandar

OkhaSikka

JamnagarNavlakhi

KandlaJakhau

Positra

Khambhat

Mahuva

Jafrabad

Mundra

SutrapadaVansi Borsi

INFRASTRUCTURE STATUSGujarat September 2009

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The state has one of the strongest port infrastructures in India

• It is the first state in India to take up port privatisation.

• The state plans to have modern mechanised cargo handling systems in all new ports.

• The state‘s port policy envisages the development of 10 greenfield sites.

Source: ―Ports of Gujarat‖, sector profile 2008–2009, Gujarat Maritime Board, Pages 10, 11


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Well developed physical infrastructure — rail, road and air

• The state has a road network of 74,111 km, including national highways (2,781 km), state highways

(18,738 km) and expressways (93 km).

• 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.

• There is 98.86 per cent rural connectivity through

all-weather roads, the highest in India.

Sources: Gujarat State Road Development Corporation,

Socio-Economic Review, 2007-08


National highways

State highways

Railways

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Well developed physical infrastructure — rail, road and air

To Delhi

To Mumbai

Existing Rail Lines

Rail Link

Ports

Airports

Transportation network across Gujarat

Sources: Compiled from industry

sources, EY research


• Pragatipath Yojana, a government initiative

introduced in 2005, envisages the development of

nine high-speed corridors and widening of

highways to connect tribal, coastal, industrial and

rural areas with mainstream areas.

• The state has 13 domestic airports (the highest in

the country) and one international airport at

Ahmedabad.

• It also has an extensive railway network of 5,188

km.

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Integrated gas grid a feather in Gujarat‘s cap

• The installed capacity of electricity in Gujarat has

increased from 385 MW in 1966 to 9,628 MW in

2008.

• Over 18,000 villages are supplied with 24-hour,

three-phase electricity under Jyotirgram Yojana.

• Transmission losses for 2007–08 were 3.85 percent,

which is amongst the lowest in the country.

• Gujarat is the only state in India with a 2,200 km

integrated gas grid that is operated on an open

access, common carrier principle.

Source: ―Power‖, sector profile 2008–2009, Government of Gujarat,

Page 6; ―Piped Natural Gas‖, GSPC Gas website,

http://www.gspcgas.com/, accessed on September 15, 2009


Integrated gas grid

Current

transmission

25 mmscmd* (including 10

mmscmd of regassified LNG)

Total length 2,200 km

Completed 1,420 km

Under construction 450 km

Planned expansion 330 km

Sources: ―Beyond State Boundaries‖, Government of Gujarat

2008–2009, page 72

* million metric standard cubic metres per day

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Integrated gas grid a feather in Gujarat‘s cap

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

Bharuch


• Gujarat State Petroleum Corporation‘s GSPC

Gas Company is currently supplying piped

natural gas (PNG) to nearly 59,709 domestic

households, 370 commercial establishments and

551 industrial customers.

• Gujarat State Petroleum Corporation holds 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.

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Adequate telecom and IT infrastructure

Key initiatives introduced as part of the state

government‘s e-governance drive include the

following:

• Gujarat State Wide Area Network (GSWAN),

world‘s second-largest IP-based WAN connecting

over 2,800 government offices

• Availability of the Secretariat Integrated

Communication Network (SICN) with over 7,500

voice connections

• Online redressal of citizen grievances through

State Wide Grievance Attention 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)

Telecommunications snapshot (March 31, 2008)

Source: ―Annual Report 2007–2008, Telecom

Regulatory Authority of India, Page 60

Number of Direct Exchange Lines

(DELs) (2008)

2,276,756

Number of GSM cellular subscribers

(August 2008)

20,343,734


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Adequate telecom and IT infrastructure

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

• Availability of 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 dedicated bandwidth.


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Building infrastructure for water

• The development of a water grid was proposed to

overcome the uneven availability of water in the state.

• Until now, 1,874 km bulk pipelines and approximately

100,000 km of distribution pipelines have been laid

across the state.

• Out of 18,594 villages, the water grid has connected

almost 9,600 villages.

• Over 14,000 Pani Samitis (water committees) by the

end of 2008.

State-wide water grid

Sources: ―Beyond State Boundaries‖, Government of Gujarat

2008–2009, pages 68-71


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Building infrastructure for water

• Water conservation schemes:

• 118,000 check dams**

• 55,900 bori bandhs (dams made of sand bags)

• Interlinking of 21 rivers in central and north Gujarat through Sujalam Sufalam Yojana

• 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.

** Check dam — Small weir constructed across a rivulet having minimum discharge of 1 cusec after the monsoons


Surface water 38,100 mcm*

Ground water 12,000 mcm

Total 50,100 mcm

* million cubic metres

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Thrust on clean transport infrastructure

CNG initiatives

• Replacement of conventional fuels by

Compressed Natural Gas (CNG) in all buses

and auto rickshaws.

• 141 CNG stations already established.

• 1,181 CNG buses of Gujarat State Road

Transport Corporation (GSRTC), 3,750 CNG

private buses, 114,446 CNG auto rickshaws and

50,708 CNG cars are currently operational.

• In Ahmedabad, CNG auto rickshaws are

mandatory.

Ahmedabad BRTS map

Sources: ―Beyond State Boundaries‖, Government of Gujarat 2008–

2009, page 74, 87


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Thrust on clean transport infrastructure

Bus Rapid Transit System (BRTS)

• 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 1 — 58 km

+ Phase 2 — 30.5 km).

• Phase 1 to be operational by December 2009.

• Entire project to be completed by December

2010.

Simulation of BRTS Project

Sources: ―Beyond State Boundaries‖, Government of Gujarat 2008–

2009, page 74, 87


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Other initiatives in urban infrastructure

River-front development

• Development around Sabarmati and Tapi rivers

undertaken to revitalise city and improve existing

infrastructure.

• Envisages development of commercial, residential

and recreational facilities.

• Sabarmati River Front Development Corporation

honoured with Prime Minister‘s Award for

Excellence in Urban Planning and Design for

development along Sabarmati river.

Other reforms

• Municipal accounting

• Solid waste management

• Energy efficiency

Proposed night view along Sabarmati river


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The state has strong social infrastructure for health

Healthcare facilities

• The state currently has 13 medical colleges, 1,080

primary health centres (PHC), 7,274 sub centres, 273

community health centres (CHC) and 85 mobile

healthcare units.

No. of registered doctors (2006)

Source: Department of Health, Government of Gujarat


Maternal Mortality Rate (MMR)172 (Aug

2007)136 (2008)

Infant Mortality Rate (IMR) 53 (2006) 52 (2007)

No. of private specialists

enrolled 865 (until 2009)

No. of deliveries under

Chiranjeevi Scheme321,302 (until April 2009)

Lives saved under Chiranjeevi

Scheme (until April 2009)

452 mothers and 6,144

newborns

Source: ―Healthcare‖, sector profile 2008–2009, Government of Gujarat,

Page 13; ―Beyond State Boundaries‖, Government of Gujarat 2008–2009, page 5

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The state has strong social infrastructure for health

Healthcare facilities

It also has a mechanism for Public-private

partnership in healthcare delivery:

• Chiranjeevi Scheme introduced to reduce

maternal and infant mortality, involves

collaborations between government and

private sector specialists to facilitate safe

deliveries for economically weaker

sections.

• The Palanpur Hospital‘s management has

been transferred to Wockhardt.

Source: Department of Health, Government of Gujarat

No. of registered nurses (2006)


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Special emphasis on the girl child in education

• The total number of primary schools in 2006–

07 was 39,064, with 221,049 teachers.

• Out of the total number of primary schools,

2,539 schools are only for girls.

• Kanya Kelavani is a state-wide girl child

education campaign to increase enrolment ratio

and decrease drop-out rates:

• Covered 28,346 primary schools

• 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

• 33,410 girls have benefited from this fund

Reduction in year-wise drop-out rates (primary school)

Source: ―Socio-Economic Review Gujarat State 2007–2008‖, Directorate of Economics & Statistics, Page 46,47


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Special emphasis on the girl child in education

• Vidya Laxmi Yojana has been implemented to

achieve 100 per cent enrolment and retention

of girls in primary schools:

• Around 699,000 girls have been given the

Vidya Laxmi Bond in the last five years

Number of girls who have benefitted from the Vidya

Laxmi Yojana (mn)



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One of the leading states in India for higher education

• The number of schools imparting secondary and higher secondary education in 2006–07 was 7,967, with 76,054 teachers.

• The number of students enrolled in these schools was 2.6 million in 2006–07.

• The number of institutions imparting higher education is 903, with 0.4 million students and 82,63 teachers.

• Over 0.5 million students graduate every year across disciplines.

INFRASTRUCTURE STATUS



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Existing internationally acclaimed institutions:

• Indian Institute of Management (IIM), Ahmedabad

• National Institute of Design (NID), Ahmedabad

• National Institute of Fashion Technology (NIFT), Gandhinagar

• Centre for Environment Planning and Technology (CEPT), Ahmedabad

• National Institute of Pharmaceutical Education and Research (NIPER)

• A campus of Indian Institute of Technology, Mumbai,

is located in Ahmedabad

INFRASTRUCTURE STATUS



Number of technical institutes

31

• Sakshardeep is a litreacy 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 Gujarat‘s youth

proficient in business English.




Seats offered by technical institutes

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Manufacturing infrastructure bolsters MSMEs

MSMEs*, product clusters and industrial

estates

• The state‘s manufacturing industry is supported

by 37, 312 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 powerlooms

cluster at Ahmedabad.

*Micro, small and medium enterprises

Number of clusters as per industry type

Source: Industries Commissionerate, GoG

** Clusters are groups of industries manufacturing identical and complementary products having critical mass of 50 units, located within a radius of 10 km


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Manufacturing infrastructure bolsters MSMEs

MSMEs*, product clusters and industrial

estates

• Gujarat has 202 industrial estates established by

Gujarat Industrial Development Corporation

(GIDC) for specific sectors — chemicals,

electronics, gems, apparels and granite.

• Industrial estates are set up on non-agricultural

land after assessment of industrial viability.

*Micro, small and medium enterprisesNavsari

Ankleshwar

Morbi

PIPAVAV

Rajkot

Jamnagar

Valsad

VadodaraAnand

Ahmedabad

Gandhinagar

Mehsana

Surendranagar

BhavnagarAmreliDAHEJ

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



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Industrial infrastructure for SEZs

Special Economic Zones (SEZs)

• Gujarat had 55 approved SEZs (45 sector-specific and 10 multi-product) as on September 2008.

• Gujarat‘s three operational SEZs are:

• Kandla SEZ

• SUR SEZ

• Surat Apparel Park

• It is the leading SEZ state with the highest geographical area (27,125 hectares) under SEZ development.

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

Key sector-wise break up of SEZs


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A V B S Am G K J

Functional 2 1

Notified and

operational2 1 1 1 1 1

Notified 4 1 2 1 1 3 3

Formal 7 4 3 3 4 1

In-principle 2 1 1 4

Industrial infrastructure for SEZs

District-wise distribution of SEZs

A Ahmedabad

V Vadodara

B Bharuch

S Surat

Am Amreli

G Gandhinagar

K Kutch

J JamnagarSEZ Status

Approval type Number Area (hectares)

Functional 3 506

Notified & operational 7 9810

Notified 15 6114

Formal approval 22 7702

In-principle approval 8 2993

Source: ―Special Economic Zones (SEZs)‖, Sector profile 2008–2009, Government of Gujarat


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Industrial infrastructure in Gujarat includes dedicated freight

corridor

Key investment regions — Delhi-Mumbai Industrial Corridor (DMIC)

• Gujarat‘s share of the Delhi-Mumbai dedicated freight corridor (DFC) of 1,500 km is 38 per cent (564 km).

• The two investment regions identified for Phase-1 development are:

• The Ahmedabad-Dholera investment region

• The Vadodara-Ankleshwar industrial area

• The area under DMIC influence in Gujarat includes:

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

• 74 per cent of population (37 million)

Haryana

Rajasthan

Gujarat

Maharashtra

Madhya Pradesh

Uttar Pradesh

Uttaranchal

Arabian Sea

Dadri

J.N.Port

End Terminals

DFC Alignment

DMIC passing through Gujarat

Sources: Industries Commissionerate, GoG


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Industrial infrastructure in Gujarat includes dedicated freight

corridor

Key investment regions — Delhi-Mumbai Industrial Corridor (DMIC)

• There is excellent connectivity to ports such as Mundra, Pipavav, Dholera, Dahej, Hazira and Maroli.

• Other key projects include the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR)

at Dahej and the Special Investment Region (SIR) at Dholera.

• The Gujarat International Finance-Tec City (GIFT), a collaboration between GUDC* and IL&FS**, is

being developed as a central finance and business district.

*Gujarat Urban Development Company Ltd

** Infrastructure Leasing and Financial Services Co. Ltd

Sources: Industries Commissionerate, GoG


38


Infrastructure Status

State Policies and Incentives

Business Opportunities

Doing Business in Gujarat

Overall State Competitiveness

Gujarat ‗s Economy and Socio - Economic Profile


39

The state has a proactive industrial policy

State industrial policy — key highlights

• The state government introduced the Gujarat Industrial Policy in 2003, with amendments in 2009.

• The policy proposes to address industry requirements on a long-term basis.

• The key highlights of the policy include the following:

• Promotion of ‗Brand Gujarat‘ in the global arena.

• Strengthening the investor facilitation mechanism.

• Facilitating access to concrete, speedy and authentic information for entrepreneurs.

• Encouraging innovative projects in the manufacturing sector.

STATE POLICIES AND INCENTIVESGujarat September 2009

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The state has a proactive industrial policy

State industrial policy — key highlights


• Promotion of ‗Green Business‘ to address environment concerns.

• Development of special investment regions (SIRs) for attracting global business.

• Increasing opportunities for public-private partnership (PPP) projects, especially in infrastructure.

• Development of incubation centres to encourage innovation by the youth.

• Upgradation of industrial and urban infrastructure.

• Development of thrust industries.

• Promotion and development of SEZs and industrial parks.

• Cluster development for SMEs.

• Human resource development and creation of employment opportunities.

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State agro and port policies and incentives

Agricultural policy — Key highlights

• The policy provides financial support and incentives for agro-industrial projects for the development and facilitation of infrastructure, marketing and research.

• There is a 6 per cent per annum back-ended interest subsidy for the first five years from commencement of operations.

• The policy provides support to private sector industries, apex cooperative industries and agriculture product marketing committees (APMCs) for setting up centres of excellence.

• Initiatives undertaken for the export of agri products include:

• Development of agri-export zones and air cargo complex

• 25 per cent air freight subsidy on agri exports

• Financial assistance (up to 50 per cent of cost) for R&D activities

• Kiosks at APMCs for connectivity with the related departments of agriculture, universities, industries and international markets


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Port policy — Key highlights

• 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 industries 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.

State agro and port policies and incentives


43

State power and IT policies and incentives

Power generation policy — key highlights

• Carry out planning and building up adequate capacity

in generation, transmission and distribution.

• Achieve optimum utilisation of existing equipment.

• Rationalise tariff structures.

• Improve quality of services to achieve cost

effectiveness.

• Strive for energy conservation.

• Encourage power generation by utilising non-

conventional energy sources.

• De-monopolise distribution of power and invite

involvement of private partners.

IT policy — key highlights

• Special incentives for mega-IT projects

creating employment for more than 1,000

persons in case of an IT unit and 1,500

persons in case of an 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$ 509 billion.

• Stamp duty exemption on purchase of land

for IT park developers.

• State shall facilitate a grant of SEZ status to

IT industry/IT parks subject to the

provision of the SEZ Act/rules.


44

State mineral and road policies and incentives

Mineral policy — key highlights

• 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 in the case of

leases of major minerals.

• Promote use of modern technology in mining.

Road policy — key highlights

• 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.


45

State solar and tourism policies and incentives

Solar Power policy - key highlights

• Promoting generation of green and clean power.

• The policy will remain in operation from 2009 to

2014.

• Solar power generators (SPGs) installed during

this period are eligible for incentives for 20 years.

• Electricity generated from SPGs and used for

self-consumption or sale to third party, or sale to

licensees, shall be exempted from payment of

electricity duty.

• Exemption from demand cut to the extent of 50

per cent of the installed capacity.

Tourism policy - key highlights

• Identifying and developing tourist destinations.

• Creating adequate facilities for budget tourists.

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

• Promoting accommodation projects, food-oriented projects, entertainment projects, service oriented projects, etc.

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


46









47

Attractive sectors — agro and food processing

Agro and food processing

• Agro sector, including animal husbandry,

contributed 14.8 per cent (at current prices) to

Gujarat‘s GSDP in 2006–07.

• Gujarat has a significant share in the national

production of principal crops such as:

• Highest production of cotton — 11.22

million bales in 2007–08

• Second-highest production of onion — 2.23

million tonnes in 2006–07

• Second-highest production of groundnut —

1.44 million tonnes in 2006–07

Wheat

Cotton

Paddy

Pulses

Grains

Tobacco

Major

ports

Banana

Onion

Major crops of Gujarat

Sources: ―Area, Production & Productivity of Cotton‖, Cotton

Corporation of India website, http://www.cotcorp.gov.in/, accessed

on September 15, 2009

BUSINESS OPPORTUNITIESGujarat September 2009

48

Attractive sectors — agro and food processing

Agro and food processing

• In 2007, the state‘s marketing network consisted of:

• 209 market committees

• 198 main yards

• 203 sub-market yards

Yield of principal crops (kg./hectare)

Sources: ―Area, Production & Productivity of Cotton‖, Cotton

Corporation of India website, http://www.cotcorp.gov.in/, accessed

on September 15, 2009


49

Attractive sectors — dairy

Dairy sector

• Gujarat‘s dairy sector consists of:

• 13 district milk producers‘ unions

• Network of 12,991 milk cooperative

societies having 2.5 million members

• Total milk production — 7.9 million tonnes

• The National Dairy Development Board in

Anand is involved in promoting, financing and

supporting milk distribution organisations

across India.

ANAND

AHMEDABAD

GANDHINAGAR

Key districts in the dairy sector

Sources: ―Estimates of milk production‖, National Dairy

Development Board website, http://www.nddb.org/, accessed on

September 15, 2009


50

Attractive sectors — dairy

Dairy sector

• Gujarat Cooperative Milk Marketing

Federation (GCMMF), a cooperative dairy

giant, sells Amul and Sagar brands of dairy

products through 500,000 unorganised

retailers and 3,000 distributors.

• GCMMF clocked a turnover of US$ 1.05

billion during fiscal 2006–07 to become the

first billion-dollar cooperative in India.

Key players in Gujarat

Sources: ―Estimates of milk production‖, National Dairy

Development Board website, http://www.nddb.org/, accessed on

September 15, 2009


http://images.google.co.in/imgres?imgurl=http://www.corporatetrainer.in/images/clientele/havmor_logo.jpg&imgrefurl=http://www.corporatetrainer.in/clients.html&h=127&w=122&sz=11&hl=en&start=1&tbnid=9lQSb6D990KwhM:&tbnh=90&tbnw=86&prev=/images?q=havmor+logo&gbv=2&svnum=10&hl=en

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

51

Attractive sectors — chemicals and petrochemicals

Chemicals and petrochemicals

• Gujarat contributed about 51 per cent to the

national production of chemicals in 2006–07.

• It is the highest contributor to the total national

production of petrochemical products.

• Gujarat‘s contribution in the national production

of the following is:

• Soda ash — 100 per cent

• Salt — 85 per cent

• Polymers — 56 per cent

• Ethylene — 50 per cent

Source: ―Chemicals & Petrochemicals‖, sector profile 2008–2009, Government of Gujarat


State-wise share in production of selected major chemicals

(2006–07)

*Other states include Andhra Pradesh, Assam, Chhattisgarh, Dadar & Nagar

Haveli, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Orissa

, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and Uttaranchal

52

Attractive sectors — chemicals and petrochemicals

Chemicals and petrochemicals

• In 2006, the state had 3,720 factories

manufacturing chemical products and employing

more than 0.16 million people.

• Major companies present: Reliance Industries,

Nirma, Lanxess ABS Ltd, Gujarat Alkalies and

Chemicals Ltd (GACL), Gujarat State Fertilizer

Company (GSFC), etc.

• Proposed development of a petroleum, chemicals

and petrochemicals integrated region (PCPIR) at

Dahej.

Source: ―Chemicals & Petrochemicals‖, sector profile 2008–2009,

Government of Gujarat


State-wise production of petrochemicals (2006–07)

*Other states include Andhra Pradesh, Assam, Chhattisgarh,

Dadar & Nagar Haveli, Haryana, Himachal Pradesh, Karnataka,

Kerala, Madhya Pradesh, Orissa , Punjab, Rajasthan, Tamil Nadu,

Uttar Pradesh and Uttaranchal

53

Attractive sectors — textiles and apparels

Textiles and apparels

• In 2008–09, Gujarat was the highest exporter of cotton in India at 60 per cent.

• 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 that year.

• Over 40 per cent of the country‘s art-silk fabric is produced in Surat.

• Over 30 per cent of fabric manufactured by the organised sector is from Gujarat.

• Gujarat is the largest producer of denim in India (65 to 70 per cent) and the third-largest in the world.

• It has the highest number of state-owned looms for cotton and man-made fibre (6,888 as on March 31, 2006); second-highest number of privately-owned looms (11,963 as on March 31, 2006).

• Operations across the entire value chain.

Source: ―Textiles & Apparel‖, sector profile 2008–2009, Government of Gujarat


54

Attractive sectors — textiles and apparels

Snapshot of textile-specific special economic zones (SEZs) and

industrial parks in Gujarat

Surat

Gandhinagar

Mehsana

Valsad

Anjar

Mundra

Raymond

VadodaraJamnagar

Bharuch

Navsari

Ahmedabad

Textile and apparel parks

Textile and apparel SEZs

Support R&D institutes and

centres of excellence

Legend


http://images.google.com/imgres?imgurl=http://www.ibnlive.com/pix/sitepix/ril_logo.jpg&imgrefurl=http://www.ibnlive.com/article.php?id=2634&section_id=16&h=178&w=248&sz=10&hl=en&start=13&tbnid=lQHefi2KQVwkqM:&tbnh=76&tbnw=106&prev=/images?q=Reliance+logo&svnum=10&hl=en&lr=


55

Attractive sectors — engineering and auto … (1/4)

Engineering and auto

• The states‘ engineering and auto sector contributes 8 per cent to India‘s total industrial production and over 9 per cent to the national engineering output.

• The state‘s engineering and auto sector has an average annual growth rate of 15 per cent.

• The sector comprises more than 600 medium and large sector units, and over 75,000 small-scale units.

• The state has 30 engineering product clusters.


Share of Gujarat in national engineering sector output

56


Factory (nos.) 29.03

Employment 23.58

Fixed capital investment 7.15

Value of output 10.1

Value added 12.72

Share (%) of engineering sector in Gujarat‘s industry

Source: ―Engineering & Auto‖, sector profile 2008–2009,



• Small-scale industry is a significant contributor to the national production of brass parts, foundry, forging and machine tools, oil engines and electric motors, submersible pumps and industrial valves and bearings.

• The brass parts cluster at Jamnagar has over 5,000 small units and meets the entire requirement for brass parts in India.

• The Kutch region in Gujarat is the third-largest steel hub in the world.

• General Motors has set up its automotive manufacturing facilities in Gujarat, providing a boost to the auto-ancillary industry.

57


Key engineering clusters

Foundry and forgings

Steel re-rolled products

Brass parts

Fabricated metal products

Steel and aluminium furniture

Electric motors

Power driven pumps

Textile machinery parts

Chemical machinery parts

Food processing machinery

Machine tools

Diesel engine and parts

Ball and roller bearings

Automobile and auto parts

Steel pipes and tubes


58


Engineering and auto — key strengths

Largest producer of sponge iron Essar Steel

Largest copper rod manufacturing facility Hindalco

Largest manufacturer of material handling

equipment

Elecon

Engineering

Largest producer of earth moving

equipmentGujarat Apollo

Largest power transmission capacity

plant

Kalpataru Power

Transmissions

Largest manufacturer of glass shells for

TV tubes

Videocon

International

Leading players in Gujarat


http://www.videoconinternational.com/default.htm

59

Attractive sectors — gems and jewellery

Gems and jewellery

• Gujarat accounts for 72 per cent of the world‘s share of processed diamonds and 80 per cent of total diamonds processed in India.

• Contributes 90 per cent of total diamonds processed in India in 10,000 units in Surat.

• Eight out of 10 diamonds in the world are polished in Surat.

• The state has the highest labour productivity in the jewellery sector in India.

Mining Processing Fabrication Consumption

Diamond

Gold

Platinum

Silver

and

others

Established presence Emerging centre/market

Gujarat‘s presence in the gems and jewellery value chain

Not applicable in Gujarat


60

Attractive sectors — gems and jewellery

Gems and jewellery

• It is internationally renowned for the production of unique hand-made silver ornaments (85 per cent of total silver jewellery production of India).

• Renowned institutions such as the Indian Diamond Institute, Gujarat Hira Bourse, and the Gems and Jewellery Export Promotion Council provide skilled manpower for the industry.



http://www.karpgroup.com/index.asp

61

Attractive sectors — oil and gas

Oil and gas

• Gujarat ranks first in the production of crude oil (onshore —55.10 per cent) and natural gas (onshore — 32.3 per cent) in India.

• The state has the highest number of oil and gas fields, both onshore and offshore, in India (31.3 per cent).

• Nearly 36.6 per cent of India‘s installed refining capacity is in the state of Gujarat, which is the highest in India.

• Proximity to Middle East gas sources and an attractive northern market makes Gujarat a potential gas supply hub.

Location Activity

Jamnagar RIL refinery — third-largest in the

world, Essar Refinery

Dahej Petronet LNG‘s re-gasification

terminal

Hazira Shell and Total‘s LNG terminal

Vadodara IOC Refinery

Gandhar ONGC‘s Gas Processing Complex


62

Attractive sectors — oil and gas

Oil and gas

• Oil and gas reserves are located at Ankleshwar, Mehsana, Tapti High, Hazira, Bharuch, Gandhar, Dahej, Jambusar, Palej, Kalol and isolated gas fields around Ahmedabad.

• Gujarat has a 2,200 km state-wide integrated gas grid.

• The state has two LNG terminals at Hazira and Dahej, and two more terminals are proposed to be set up at Pipavav and Mundra.


Source: ―Oil & Gas‖, sector profile 2008–2009,



http://images.google.co.in/imgres?imgurl=http://www.pesgb.org.uk/pesgb/S4/CairnLogo.jpg&imgrefurl=http://www.pesgb.org.uk/pesgb/S4/S4_AbdNov05.asp&h=354&w=945&sz=98&hl=en&start=1&um=1&tbnid=u9zMIdfy3FR_WM:&tbnh=55&tbnw=148&prev=/images?q=cairn+energy+++logo&svnum=10&um=1&hl=en&sa=N


63

Attractive sectors — pharma and biotech

Pharmaceuticals and biotechnology

• Gujarat accounted for 45 per cent of the national pharmaceutical production in 2006–07.

• It is the first state in India to manufacture active pharmaceutical ingredients (APIs) and finished dosage forms.

• The state accounts for 90 per cent of intravenous sets manufactured in the country.

• It is home to more than 902 allopathic manufacturing units and 2,122 contract manufacturing units.

• Gujarat accounted for 22 per cent of India‘s pharmaceutical exports in 2006–07.

• It is home to the largest number of clinical research organisations in India and over 100 companies with WHO-compliant manufacturing units.

• Gujarat has a considerable presence in homoeopathic medicine with 7,500 practitioners, 216 government dispensaries and 15 colleges.


64

Attractive sectors — pharma and biotech

Key players across the value chain

NCEs

Active pharmaceutical ingredients

Technology intensive drugs (cytotoxics, vaccines)

Manufacturing and research services

Commodity generics

Manufacturing organisation

Academic institution

R&D organisation

Bharuch and

Vapi/Valsad

cluster

Surat

Baroda

cluster

Gandhinagar

AhmedabadSurendranagar

Junagadh

Rajkot

Ahmedabad

cluster

Ankleshwar

cluster

NDDS products


65

Gujarat offers business opportunities in the ports sector

Port-led development

• The state has a vast hinterland comprising key northern states.

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

• In 2007–08, minor ports of Gujarat handled 20 per cent of the total cargo handled by Indian ports.

• The total port capacity of Gujarat grew at 46.6 per cent, from 135 MMT* in 2001 to 198 MMT in 2007–08.

Source: ―Ports of Gujarat‖, sector profile 2008–2009, Government

of Gujarat

Gujarat: Strategic Location

Main ports of Gujarat

Mundra Navlakhi

Jamnagar

SikkaOkha

Porbandar

Pipavav

Gujarat

Dahej

HaziraMagdalla

Kandla

* MMT = million metric tonnes


66

Gujarat offers business opportunities in the ports sector

Port-led development

• Many upcoming ports being developed as captive ports for catering to specific companies.

• The state is undertaking fast-track clearance and establishment of ports through private participation.

• 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 2008–2009, Government of Gujarat


67

Large-scale infrastructure building for shipbuilding industry

Shipbuilding

• There are several shipyards present in Gujarat —ABG Shipyard, Alcock Ashdown, Vipul Shipyard, etc.

• Infrastructure available for the development of the shipbuilding industry includes:

• Availability of raw materials — ship building plates and engines

• Stillness of water and deep draft

• Proximity to ancillary industries

• Sufficient anchorage space

Sources: Gujarat Maritime Board data and

industry sources

Marine ship building parks (probable stretches)

Ship recycling

Bunkering facility

Ship building ⋐

⋐Mundra

⋐⋐

⋐⋐

Jafrabad

Pipavav

Dahej

Bhavnagar

Okha

Shipping Industry: Opportunities


68

Large-scale infrastructure building for shipbuilding industry

Shipbuilding

• New shipyards are being established in Pipavav and Hazira.

• New projects will be accommodated in a cluster of shipyards called Marine Shipbuilding Parks that will have common infrastructure and all ancillary facilities.

• A mega marine shipyard is proposed to be built at Dahej and at the Gulf of Kutch.


69

A rich heritage offers opportunities in tourism

Tourism

• The state has a rich architectural and cultural heritage owing to the presence of Indus Valley civilisation sites such as Lothal, Harappa, etc.

• Several pilgrimage and historical places, wildlife sanctuaries, and beach and hill resorts are present.

• 2006 was celebrated as Tourism Year in Gujarat to promote it as a key tourist destination of India.

• Some of the initiatives undertaken by the government to promote tourism include the following:


Purpose of tourist flow (2006–07)

• Development plan for six tourist destinations by the Pilgrimage Development Board of Gujarat

• Constitution of the Tourism Promotion Council

• Reduction in entertainment tax from 50 to 25 per cent from 2006 onwards

70

A rich heritage offers opportunities in tourism

Tourism

• Increase in tourism budget from US$ 21 million during 2008–09 to US$ 35 million during 2009–10

• Policies on medical tourism, eco tourism and heritage tourism

• Introduction of courses in tourism and hospitality management

• Heritage conservation at Adalaj, Vadnagar and Champaner


Gross tourist flow (2006–07)

Source: www.customsgujarat.nic.in

Nu

mb

er

of

To

uri

sts

(millio

ns)

71

The state has a varied export profile

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

• During 2006–07, exports and imports were recorded at US$ 126,362 million and US$ 185,749 million, respectively.

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

• Exports from Kandla port amounted to 39.9 lakh tonnes in 2006–07.

• Export items from intermediate and minor ports include naphtha, petrol, clinker, cement, oil cakes, bauxite, para-xylene, salt, soda ash, food grain, cement clinker, ethylene, etc.

Increase in exports from Gujarat (US$ bn)


Sector-wise exports (US$ bn)



72

Gujarat in the forefront in terms of attracting investments

• The Government of India ranks Gujarat first amongst all states in the country in terms of the total value of Industrial Entrepreneurs Memorandum (IEMs) — 1,424 —implemented in the last 17 years between 1991 and 2008.

• As per the Reserve Bank of India‘s (RBI) 2008 report, Gujarat continues to hold the first rank with the proposed investment of Rs 62, 442 crore from 100 projects, accounting for 22 per cent of total investment intentions.

VGGIS Investments

Vibrant Gujarat 2009: Key Investments

Sector MoUsInvestment(US$ bn)

Manufacturing 566 50.84

Infrastructure 194 105.51

Investment regions 101 42.61

Urban development 261 21.97

Social services 145 6.53

Tourism 97 9

Financial services + environment

47 15.67

MSME 7252 1.48

Source: ―Investments‖, Vibrant Gujarat website,

www.vibrantgujarat.com, accessed on September 15, 2009


73

Gujarat in the forefront in terms of attracting investments

• With a share of 12.4 per cent ( US$ 4,045.25 million), Gujarat ranks second in the country in terms of FDI inflow, the first being Maharashtra.

• Vibrant Gujarat Global Investors‘ Summit (VGGIS) is a biennial networking event organised with the aim of showcasing Gujarat‘s strengths at a global forum.

Source: ―Investments‖, Vibrant Gujarat website,

www.vibrantgujarat.com, accessed on September 15, 2009


74

Key players doing business in Gujarat … (1/9)

Company Business description

Reliance Industries Ltd

• India‘s largest and only private sector company to feature in the Fortune Global 500 list of ‗World‘s

Largest Corporations‘

• Annual revenues of over US$ 34 billion (as of March 31, 2008)

• Three manufacturing facilities in Gujarat at Naroda, Jamnagar and Hazira

• Largest grassroot refinery in the world at Jamnagar

• Product lines include synthetic textiles, fabrics, fibre intermediates, plastics, polyester, chemicals and

petrochemicals

Adani Group

• Established in 1988

• Largest trading house in India — leading trader in coal, wheat, castor oil, petroleum, business

process outsourcing (BPO), power trading, iron-ore and pulses

• Involved in development of Mundra port — second port to be privatised in Gujarat

• Developed natural gas distribution network

• Established India‘s largest edible oil refinery in the state



http://images.google.co.in/imgres?imgurl=http://www.adanigroup.com/images/adani_group_logo.jpg&imgrefurl=http://www.adanigroup.com/finan_ann reports.html&h=138&w=159&sz=5&hl=en&start=3&tbnid=qXQOAuGP4WGkmM:&tbnh=84&tbnw=97&prev=/images?q=adani+++logo&gbv=2&svnum=10&hl=en

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Essar Group

• Diversified business group with enterprise value over US$ 14 billion in 2008–09

• Business portfolio includes steel, energy, power, communication, ports, shipping and logistics, and

construction

• Operations in Mumbai, Gujarat (Ahmedabad, Hazira, Vadinar), Vishakhapatnam

• Has operations in over 20 countries across five continents

• Essar Group has the world's largest gas-based sponge iron plant

• India‘s largest exporter of flat steel products with a capacity of 14 MTPA (million tonnes per annum) —

steel plants in Gujarat, Andhra Pradesh and Chattisgarh and one proposed in Orissa

• Essar Steel is the largest steel producer in western India, with a capacity of 10 MTPA at Hazira, Gujarat

Aditya Birla (AB) Group• A US$ 29.2 billion corporation, operating in 25 countries and focussing on key sectors such as

aluminium, copper, cement, carbon black, textiles, fertilisers, chemicals, mining, software, BPO, financial

services, telecom and retail

• Hindalco, a Fortune 500 company of the AB Group, is one of the world‘s largest aluminium rolling

companies

• Fourth-largest producer of insulators in the world

• World leader in viscose staple fibre

• 10 manufacturing facilities located across Gujarat


76



ABG Shipyard

• Key business activities include ship building and ship repairing

• India‘s largest private sector shipyard (Magdalla-Surat), proposed shipyard at Dahej

• Constructed and delivered 104 specialised vessels — interceptor boats, self-loading and discharging

bulk cement carriers, split barges, newsprint carriers and offshore supply vessels

• First Indian company to export vessels to Norway

• First to produce diesel electric dynamic ships and pollution control vessels

• Received ‗Highest Exporter‘ awards from the Engineering Export Promotion Council (EEPC) since

2005

Torrent Group• US$ 714 million diversified conglomerate with a strong presence in power and pharmaceuticals

• Group companies include Torrent Pharmaceuticals Ltd, Torrent Power Ltd and Torrent Cable Ltd

Torrent Power distributes over seven billion units of power annually to Ahmedabad, Gandhinagar

and Surat

• Torrent Pharma has a manufacturing plant at Indrad (Gujarat), which manufactures formulations and

bulk drugs


http://images.google.co.in/imgres?imgurl=http://www.moneycontrol.com/news_image_files/ABG_Logo.gif&imgrefurl=http://indiaearnings.moneycontrol.com/sub_india/news.php?category=5&pagecount=10&next=0&sc_did=&h=120&w=120&sz=3&hl=en&start=1&um=1&tbnid=IttTmOi1zxxV6M:&tbnh=88&tbnw=88&prev=/images?q=ABG+Shipyard+++logo&svnum=10&um=1&hl=en&sa=N

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Zydus Cadila

• India‘s leading pharma companies with sales of US$ 629 million in 2008–09

• Product line includes formulations, APIs, diagnostics, health and diet foods, skin care and animal

healthcare products

• Exports formulations and APIs to over 43 countries

• Focus areas for exports include cardiovascular, gastrointestinal and pain management

• Production units at Ahmedabad, Vadodara and Ankleshwar for manufacturing tablets, injectables,

capsules, liquids and APIs

Quintiles India • Leading global clinical research organisation (CRO), first global CRO to be established in India

• Only CRO in India to be identified as commercial R&D company by Department of Scientific and

Industrial Research

• Conducted over 175 clinical studies involving over 1,300 sites and 35,000 patients


78



Nirma • Over 350,400 distributors, over 1 million retailers and 300 million consumers

• Product line includes cosmetics, soaps, detergents and salt

• Largest detergent manufacturer in India

Welspun

• Presence across 50 countries

• Business activities include home textiles, saw pipes and steel, specialty texturised polyester yarn,

bathrobes, retail

• Welspun-Rohren — among the largest saw pipe manufacturers in Asia

• In 2009, Welspun India Ltd demerged into two companies–Welspun Global Brands Ltd (marketing,

sales, distribution) and Welspun Investments Ltd


http://images.google.co.in/imgres?imgurl=http://upload.wikimedia.org/wikipedia/en/thumb/8/8f/Nirma_logo.jpg/100px-Nirma_logo.jpg&imgrefurl=http://en.wikipedia.org/wiki/Nirma&h=46&w=100&sz=3&hl=en&start=1&um=1&tbnid=rMHiOVp4GWgO6M:&tbnh=38&tbnw=82&prev=/images?q=nirma+++logo&svnum=10&um=1&hl=en&sa=N

79



Amul • Anand Milk Union Limited (AMUL) was established in 1956

• 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

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

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

• Asia‘s first fabric manufacturing unit to receive an ISO 14001 certification

Ashima Group • One of India‘s leading 100 per cent cotton fabric manufacturers

• Over two-thirds of its production of 60 million metres of woven and 2,800 tonnes of circular knitted

cotton fabric is exported to over 45 countries

• Products include denims, shirtings, knitted fabrics and garments

• First textile company to get certified for ‗Integrated Quality and Environmental Management System‘

ISO 9001:2000 and ISO 14001:2004


http://210.212.129.102/

http://images.google.co.in/imgres?imgurl=http://www.toboc.com/images/COMPANYLOGO/583598.JPG&imgrefurl=http://www.toboc.com/2401/All/All/1/Fabric---Cotton/A/ExporterSearch.aspx&h=70&w=120&sz=4&hl=en&start=10&um=1&tbnid=nBAX2490aEtv9M:&tbnh=51&tbnw=88&prev=/images?q=ashima+group+limited&svnum=10&um=1&hl=en&sa=N

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

80



Rasna• Holds 93 per cent market share in Indian soft drink concentrate market

• 82 per cent of in-house consumption of soft drink market

• Wide range of products in processed foods category

Bombardier Transportation India

• Presence in India since 35 years, headquartered in Canada

• Business activities include rail transportation equipment, systems and services, regional and business

aircraft; leading supplier of motor vehicles worldwide

• Among the first private companies to build rail vehicles in India

• Production facility at Vadodara

Matsushita • Largest Japanese electronics producer

• Products include audiovisual and information/communication equipment, home appliances

• Among the first companies to establish a business unit in Gujarat in 1972 through a joint venture

with Indian company Lakhanpal

• Manufacturing unit at Vadodara where it manufactures dry cell batteries


http://images.google.co.in/imgres?imgurl=http://www.investlisburn.com/filestore/images/Bombardier-logo.jpg&imgrefurl=http://www.investlisburn.com/about_lisburn/lisburn_an_investor_perspective/&h=117&w=496&sz=9&hl=en&start=3&um=1&tbnid=EkAfp-5_ExzzhM:&tbnh=31&tbnw=130&prev=/images?q=bombardier+++logo&svnum=10&um=1&hl=en

http://images.google.co.in/imgres?imgurl=http://www.medfordtools.com/matsushita/logo2.gif&imgrefurl=http://www.medfordtools.com/matsushita/steelcutters.html&h=51&w=180&sz=5&hl=en&start=9&um=1&tbnid=dFFLxbi4DhiKNM:&tbnh=29&tbnw=101&prev=/images?q=matsushita+++logo&svnum=10&um=1&hl=en

81



McCain Foods • Privately-owned, multinational leader in the frozen food industry with a revenue of US$ 6 billion in

2004

• 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 buy potatoes from over 100 farmers spread over Anand,

Borsad, Palanpur and Deesa in Gujarat

• 2,000 acres of drip irrigation, introduced by McCain, present in Gujarat for potato farming

• Manufacturing facility at Mehsana

Alstom

• The company's activities in India include power generation, power service and rail transport

• Headquartered in France and with a presence in 70 countries, employing 80,000 people worldwide

• Alstom Projects India Ltd is headquartered in New Delhi and has facilities in Durgapur (utility boilers

manufacturing facility), Coimbatore (transport manufacturing facility), Bangalore (transport sector

software development centre), Kolkata (power service and environmental control system), Shahabad

(boiler and foundry products manufacturing facility) and Vadodara (hydro business manufacturing

facility)

• Contract with Gujarat State Electricity Corporation Ltd (GSECL) for construction of the first Alstom

GT26-based combined cycle power plant in India, as an extension of the existing power plant at Utran

(Surat)


http://images.google.co.in/imgres?imgurl=http://www.cachetco2.eu/logos/alstom_logo.jpg&imgrefurl=http://www.cachetco2.eu/partners.html&h=39&w=200&sz=9&hl=en&start=7&um=1&tbnid=iXO8hIO0HVCoEM:&tbnh=20&tbnw=104&prev=/images?q=alstom+++logo&svnum=10&um=1&hl=en

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Key players doing business in Gujarat … (9/9)Company Business description

Shell • Among the global leaders in oil, gas and petrochemicals sector, with interests in biofuels, wind, solar

power and hydrogen

• Operates in over 100 countries, employing over 102,000 people worldwide

• Largest and most diversified international investor in India‘s energy sector

• Only global major to obtain a fuel retail license in India

• The Hazira LNG Terminal and Port project is Shell‘s largest venture in India

General Motors (GM)• Founded in 1908, GM is the world‘s largest auto maker

• Global industry sales leader for 78 years, GM employs 324,000 people around the world

• Headquartered in Detroit (USA), GM manufactures cars and trucks in 32 countries and has sales in

200 countries

• General Motors India, incorporated in 1994, became a fully-owned subsidiary of GM in 1999

• 45,000 sq mt plant at Halol (Panchmahal), Gujarat, produces Opel Corsa, Corsa Sail, Chevrolet Optra

and Chevrolet Tavera

Linde Engineering• Leading industrial gas and engineering company with over 53,000 employees working in 70 countries

• Constituent companies are Linde Gas and Linde Engineering

• Linde designs and builds turnkey process plants for industrial users and applications; Linde Engineering

has operations in Vadodara (Gujarat)


http://images.google.co.in/imgres?imgurl=http://www.disneyfrontier.com/wp-content/uploads/2007/01/gm_general_motors_logo.jpg&imgrefurl=http://www.disneyfrontier.com/category/disney-parks/disney-world/epcot/&h=285&w=285&sz=21&hl=en&start=1&tbnid=zRZmKb89FrEBsM:&tbnh=115&tbnw=115&prev=/images?q=general+motors+++logo&gbv=2&svnum=10&hl=en

83









84

A roadmap for doing business in Gujarat

Registration of Business Organization

Approvals/Registrations/Filling with competent authority for set

Land

Apply to the

District

Collectorate for

Government

Land

Private

Land

(Permissions

from district

collectorate )

Apply to Forest

& Environment

Department for

Forest Land

Apply to Gujarat

Industrial

Development

Corporation for

Industrial Estates

Apply to the SEZ

or Industrial Park

developer for land

In case land falls under Urban development authority limits, apply to UDA for Zoning / Zone Change Certificate and apply

to District Collectorate for NA permission

Apply for Consolidated Consent and Authorization from GPCB

Obtain permission under FCA &

WPA from competent Authorities

Obtain CRZ clearances (if

applicable) from F&ED

Apply for Power to the relevant Zonal OfficesPGVCL , Rajkot

(For Saurashtra & Kutch)

DGVCL , Surat

(For South Gujarat)

UGVCL , Mehsana

(For North Gujarat)

MGVCL , Vadodara

(For Central Gujarat)

Apply for Gas to the relevant companies Gujarat Gas

Company Ltd

Gail (India)

Ltd

Adani

Energy Ltd ;

GSPC Gas

Company Ltd

Sabarmati

Gas Ltd

Charotar Gas

Sahkari Mandali

Ltd

Apply for Water to

relevant Authorities

SSNNL : Narmada

Canal

Irrigation Department:

Other Canals

Local Governing

Body : Surface Water

CGWA : Ground

Water

GWIL Desalination

Plants

DEE in case

of GIDC

estates

Construction Permission from Urban Development Authority


Approvals/Registrations/Filling with competent authority for setting up the project

Identification of location within Gujarat for setting the Industrial Unit

Land

Apply for Factory License from department of Labour & Industrial Health and Safety

Apply to the

District

Collectorate for

Government

Land

Private

Land

(Permissions

from district

collectorate )

Apply to Forest

& Environment

Department for

Forest Land

Apply to Gujarat

Industrial

Development

Corporation for

Industrial Estates

Apply to the SEZ

or Industrial Park

developer for land






Obtain EC from MoEF,

GoI for Category A

projects. SEAC, F&ED,

GoG for Category B

projects (listed in EIA

notification

Dt14.09.2006)

Obtain CTE

from GPCB(in

case land is

declared as

dark zone)





DGVCL , Surat

(For South Gujarat)

UGVCL , Mehsana

(For North Gujarat)

MGVCL , Vadodara



Company Ltd

Gail (India)

Ltd

Adani

Energy Ltd ;

GSPC Gas

Company Ltd

Sabarmati

Gas Ltd

Charotar Gas

Sahkari Mandali

Ltd

Apply for Water to


SSNNL : Narmada

Canal


Other Canals

Local Governing


CGWA : Ground

Water

GWIL Desalination

Plants

DEE in case

of GIDC

estates



Approvals/Registrations/Filling with competent authority for set

Land

Apply to the

District

Collectorate for

Government

Land

Private

Land

(Permissions

from district

collectorate )

Apply to Forest

& Environment

Department for

Forest Land

Apply to Gujarat

Industrial

Development

Corporation for

Industrial Estates

Apply to the SEZ

or Industrial Park

developer for land










DGVCL , Surat

(For South Gujarat)

UGVCL , Mehsana

(For North Gujarat)

MGVCL , Vadodara



Company Ltd

Gail (India)

Ltd

Adani

Energy Ltd ;

GSPC Gas

Company Ltd

Sabarmati

Gas Ltd

Charotar Gas

Sahkari Mandali

Ltd

Apply for Water to


SSNNL : Narmada

Canal


Other Canals

Local Governing


CGWA : Ground

Water

GWIL Desalination

Plants

DEE in case

of GIDC

estates



Approvals/Registrations/Filling with competent authority for setting up the project

Identification of location within Gujarat for setting the Industrial UnitIdentification of location within Gujarat for setting the Industrial Unit

Land

Apply for Factory License from department of Labour & Industrial Health and Safety

Apply to the

District

Collectorate for

Government

Land

Private

Land

(Permissions

from district

collectorate )

Apply to Forest

& Environment

Department for

Forest Land

Apply to Gujarat

Industrial

Development

Corporation for

Industrial Estates

Apply to the SEZ

or Industrial Park

developer for land






Obtain EC from MoEF,

GoI for Category A

projects. SEAC, F&ED,

GoG for Category B

projects (listed in EIA

notification

Dt14.09.2006)

Obtain CTE

from GPCB(in

case land is

declared as

dark zone)





DGVCL , Surat

(For South Gujarat)

UGVCL , Mehsana

(For North Gujarat)

MGVCL , Vadodara



Company Ltd

Gail (India)

Ltd

Adani

Energy Ltd ;

GSPC Gas

Company Ltd

Sabarmati

Gas Ltd

Charotar Gas

Sahkari Mandali

Ltd

Apply for Water to


SSNNL : Narmada

Canal


Other Canals

Local Governing


CGWA : Ground

Water

GWIL Desalination

Plants

DEE in case

of GIDC

estates


Source: Doing Business in Gujarat 2008, Government of

Gujarat

DOING BUSINESSGujarat September 2009

85

Key approvals required … (1/7)

Step 1: Approvals/registration/filing information for setting up project

Key approvals required

Procedure Authority

SSI Registration District Industries Centre (DIC) of the district where unit is to be located

Industrial Entrepreneur‘s Memorandum (IEM) District Industries Centre/Industries Commissionerate, Government of Gujarat

Filing Industrial Entrepreneur‘s Memorandum (IEM)

Secretariat for Industrial Assistance, Ministry of Commerce and Industry, Government of India

Letter of Intent (LoI) Secretariat for Industrial Assistance, Ministry of Commerce and Industry, Government of India, New Delhi

Letter of Permission (LoP)

For automatic approval: The Development Commissioner, Kandla Special Economic Zone, Ministry of Commerce and Industry, Government of India, Kandla (district Kutch), Gujarat

For other industries: Secretariat for Industrial Assistance, Ministry of Commerce and Industry, Government of India, New Delhi

Source: Doing Business in Gujarat 2008, Government of Gujarat


86


Step 2: Registration of business organisation

Type of Organisation Authority

Sole proprietorship No registration required

Partnership

Registrar of Partnership Firms,

Government of Gujarat,

Vechan Vera Bhavan, Ashram Road

Ahmedabad — 380 009

Corporation

(Private/Public Ltd) — Registration of name and submission of three

documents — declaration for incorporation of the company, particulars

for appointment of MD, notice for situation of registered office, Articles

of Association

Registrar of Companies, Government of India (office located in Gujarat)



87


Step 3: Acquisition of land

• In Gujarat, investors can acquire land in the

following ways:

• Purchase land in GIDC estate

• Apply for state government land

• Purchase private land

• Forest land

• Land parcel in SEZ or industrial park

Land Authority

In GIDC estate

Concerned office of Gujarat Industrial Development Corporation (GIDC)

Government land

Concerned district collector or collector/district development officer

Private land (purchase of agricultural land for non-agricultural use)

Owner of the private land

Forest land

1. Ministry of Forest & Environment

2. State Wild Life Board, National Wild Life Board and Supreme Court (for land reserved for wildlife sanctuaries or national parks)



88


Step 4: Clearance from Pollution Control Board

• No Objection Certificate (NOC) to be obtained

from Gujarat Pollution Control Board (GPCB)

• Consent of GPCB mandatory to commence

production

• Environmental Impact Assessment (EIA) has now

been made mandatory under the Environmental

Protection Act, 1986, for 29 categories of

development activities involving an investment of

US$ 12.20 million and above

• GPCB has exempted around 100 industries in the

small scale and cottage sector from obtaining NOC

Applicability Authority

Environmental clearance

Ministry of Environment and Forest, and Government of Gujarat (State Impact Assessment Committee)

Consent to Establish (CTE)

GPCB

Consolidated consent and authorisation

GPCB



89


Step 5: Arrangement of power

Purpose Authority

GIDC estates Zonal office

Locations other than GIDC estates

Zonal distribution company

Captive powerGujarat Energy Transmission Corporation Limited (GETCO)

Step 6: Arrangement of gas

Purpose Authority

Gas supplyGujarat State Petroleum Corporation (GSPC) or private distributor

Step 7: Arrangement of water

Location of Unit Authority

Proximity to Narmada CanalSardar Sarovar Narmada Nigam Limited (SSNNL)

For drawing

canal/underground water

other than Narmada Canal

Irrigation department

For drawing water from the

pipeline of Gujarat Water

Infrastructure Limited (GWIL)

GWIL

Surface waterLocal governing bodies (municipal corporations)

For the usage of ground water

for industrial purposes from

the area falling under dark

zone, over-exploited area or

saline area

The Superintendent, from Gujarat, Water Resources Development Corporation (GWRDC)

Water supply for industrial

purposes within GIDC estate

Deputy Executive Engineer of the estate concerned



90


Step 8a: Approval of building plans

Location of unit Authority

In GIDC estatesGIDC executive engineer in the region

Outside GIDC estates

Director, Industrial Safety and Health, is authorised to give approval to plans of the premises, equipment layout and process layout, registration of factory and grant of licenses

Step 8:

Approval from Labour and Employment Department

Step 8b: Approval from Labour Department

Purpose Authority

Statutory/procedural formalities under various labour laws and the level of approvals varies with the stage and volume of employment

Labour Commissioner

Step 9: Approval from Commercial Tax Department

Purpose Authority

Value-Added Tax (VAT) registration

Respective area officer in whose jurisdiction the chief place of business falls

Central Sales Tax (CST) registration

Respective area officer in whose jurisdiction the chief place of business falls

Step 10:

Approval from Department of Geology and Mining

Purpose Authority

Mining leaseDepartment of Geology and Mining



91


Step 11: Other approvals

Applicability Authority

Boiler registrationChief Inspectorate, Steam and Boiler, Government of Gujarat

Handling of hazardous items

Director of Industrial Safety and Health, Government of Gujarat

Storage of explosive materials

Directorate of Explosives,

Government of India

Customs bonding for 100% EoUs located outside SEZs

Collector of Customs & Central Excise, Government of India

Quality certificationBureau of Indian Standards (office located in Gujarat)

Single-window clearance

Industrial Extension Bureau (iNDEXTb) provides single point contact for all investment activities in Gujarat

Sector-specific approvals

Sector Authority

Food and drug manufacturing units

Commissionerate of Food & Drug Administration, Government of Gujarat

Registration for milk products

Milk and Milk Products Board, New Delhi

Projects located within 500m of the coastline

Gujarat Maritime Board



92

Business climate

Availability of skilled manpower

• Renowned academic and research institutions - IIM,

NIFT, NID, CEPT, NIPER, IIT

• Industrial Training Institutes (ITIs) in each district

for training manpower at shop-floor level

• Government‘s initiatives to encourage innovation in

the education sector

Infrastructure availability

• 42 ports, 13 airports

• Extensive road and rail network

• Highest number of airports

• 24-hr power supply to urban and rural areas

• 2,200 km gas grid for gas supply to industrial areas

• 83 product clusters, 202 industrial estates, 55 SEZs,

Delhi-Mumbai Dedicated Freight Corridor


93

Business climate

Proactive governance

• Strong regulatory and judiciary framework

• SEZ Act

• Gujarat Infrastructure Development Act

• Gujarat Port Policy

• Gujarat Industrial Policy 2000

• Gujarat Build Operate Transfer Law

• Cluster Development Scheme

• Port privatisation

Growing economy and industry

• Higher GSDP growth than country‘s average

• Robust financial growth

• Strong presence across all industry sectors

• Manufacturing facilities of leading national and

international companies

Investment destination of choice

• According to the outlook for corporate investments

by Reserve Bank of India (RBI), Gujarat ranks first

for private corporate investments in the country

• As per Deutsche Bank research, Gujarat offers the

most favorable outlook for infrastructure projects

Increasing investments

1420

152

243

76226 675

8663

0

50

100

150

200

250

300

2003 2005 2007 2009

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Investment (US$ billion) MoUs


94









95


Parametre

Opportunities in different industries

Tourism

Information technology

Food processing industry

Crude oil and natural gas

Petrochemicals

Pharmaceuticals and biotechnology

Agriculture, food and agro processing industry

Minerals-based industry

Engineering industry

Chemicals industry

Apparels and textiles

Retail

Electronic hardware

Gems and jewellery

High

Medium

Low

OVERALL STATE COMPETITIVENESSGujarat September 2009

96


Parametre

Doing business

Fiscal and non-fiscal incentives

Cost of doing business

Availability of labour

Ease of setting up and carrying out business

Industrial Infrastructure — existing and proposed

Power

Connectivity

Industrial estates/areas

STP

EPIP

EPZ

IIDC

Industrial growth centres

High

Medium

Low

OVERALL STATE COMPETITIVENESSGujarat September 2009

97

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