INDIAN STATE : GUJARAT

General Information

Gujarat state came into existence as a separate State on 1st May 1960.The State is situated on the west coast of India between 20-6' N to 24-42' N north latitude and 68-10'E to 74-28'E east longitude. Situated on the west coast of India, Gujarat is one of the leading industrial states of India. It has a geographical area of 1,96,024 sq kms and accounts for 6.19% of the total area of India. Led by entrepreneurial spirit and unfaltering State Government support, Gujarat is a manufacturing powerhouse with world-class production capabilities. Gujarat accounts for 16% of the country's total investment and 10% of the total expenditure. A strong manufacturing sector is the edifice of economic activity in Gujarat. The state contributes 20% to the manufacturing, 14% to the exports and 30% to the stock market capitalization of India.

Fact File

Geographic Location

Situated in the Northwestern part of the Indian peninsula, the state of Gujarat is bound by Rajas than in the North, Madhya Pradesh in the East, Maharashtra in the Southeast, Arabian Sea in the west and Pakistan in the northwest.

Gujarat, one of the most industrialized state in India, has been on the industrial map of the world since the late eighteenth century with its long-standing trade links with Europe, the Middle East and African countries.

Area

Total area of Gujarat is 196024 sq km.

Climate

The climate of Gujarat is moist in the southern districts and dry in the northern region. Due to the Arabian Sea and the Gulf of Cambay Gujarat's climate is pleasant and healthy. The seasons can be divided into: the winter season from November to February, the hot season from March to May, the south-west monsoon season from June to September and the intervening month of October.

Temperature

27° C to 42° C in summer
14° C to 29° C in winter

Advantage Gujarat

• Gujarat has a strategic location, which gives it easy accessibility to the western, Middle East and African markets.
  
• The population density of Gujarat now stands at 258 persons per sq. km as against the national average of 325 persons per sq. km.
  
• The state has longest coastline among all states in India - 1600 Kms, dotted with 41 ports -- 1 major, 11 intermediate and 29 minor.
  
• Gujarat has the advantage of entrepreneurial skill.
  
• High level of industrialization: Investment equivalent to over US$ 30 billion underway.
  
• The state is blessed with highly productive and peaceful workforce.
  
• The present power generating capacity 9,007 MW* - and plans are afoot to raise it to 17,477 MW by 2010 AD (*excluding 4,600 MW captive generation).
  
• Excellent road network - length exceeding 74,000 Kms linking all the regions of the State.
  
• An efficient rail network connecting all-important centres in the state.
  
• Highest number of Airports - 11 - among all the states in India with Ahmedabad an international airport.
  
• Second highest in India in terms of industrial production, lignite, petroleum and moulding sand.
  
• Fourth highest in India in overall mining of minerals.
  
• Largest deposits of fluorite, agate and chalk.
  
• Contributing almost 100% of Acrilonitrile, Cyanide Salts, PMMA, PP, Melamine, Sodium Bicarbonate and Phosphorus and as much as over 80% of Soda Ash, Xylene, Elastomer and LDPE in country's total production.
  
• Quality network of educational institutions.
  
• Excellent law and order situation.
  
• Professional approach of the Government and Civil services.

Economic Infrastructure

Gujarat has always been at the centre stage of the Indian economy and it is a land of enormous opportunities. Infrastructure is an important determinant for economic development and a priority for public investment. Gujarat has a sound, extensive and robust infrastructure. The pragmatic approach of the government of Gujarat in the form of strategic planning and consistent and positive policy initiatives has been a major boom for the infrastructure sector. Gujarat is one of the leading states to invite private sector participation in infrastructure through competitive bidding. The government of Gujarat has enacted Gujarat Infrastructure Development Act in order to facilitate and accelerate the process of setting up infrastructure projects with the help of private sector investments. The vision 2010 has 383 infrastructure projects and the investment plan has been adopted as a two-stage approach.

Ports

Gujarat is situated on the western coast of India and is a principal maritime state. The state of Gujarat is endowed with favourable strategic port locations, accounting for nearly 1/3rd of the coastline of India and has 1600 Kms of coastline. Gujarat is the first state to privatize the port sector. The port sector is developing at a commendable pace in the state. The state has 41 large and small ports, of which 11 are intermediate ports and 29 are minor ports. Kandla is a major port and there are two private ports at Pipavav and Mundra. The only chemical port of the country is located at Dahej, near Bharuch. Each port location in Gujarat has a lot of opportunities to offer. These ports of Gujarat handle a lot of port traffic in the country and also millions of tonnes of cargo. The ports target a gross capacity of 100 million tonnes, cornering 25 percent of the cargo and handle 80 percent of the port traffic in the country. Gujarat is the first state to announce a separate port policy, which integrates the development of ports with industrial power generation and infrastructure development. The Pipavav port at Pipavav (Saurashtra) and the Mudra port in Kutch were the country's Greenfield ports to be developed on a Built-own- Operate- Transfer (BOOT) basis. Gujarat Maritime Board has invited the expression of interest for development of 5 Greenfield ports. The state's port policy envisages 10 new sites along the coastline for development. All these developments are believed to encourage coastal shipping of passengers and cargo within the state as well as to and fro from important places outside the state. The state has proposed to introduce a hovercraft/ catamaran service joining different terminals along the Kutch and Saurashtra coast. It is estimated that by 2015, Gujarat's ports will handle 400 million tonnes, i.e., 39 percent of the total national cargo.

Railways

In view of the rapid growth in the industrial sector, the State Government is looking for strategic options to improve transport facilities. Railways have an important responsibility to provide linkages to the upcoming centres of growth. This includes conversion of meter gauge lines to broad gauge and laying of new railway lines. The Kutch railway company on the Gandhidham Palanpur track is implementing gauge conversion. The first project built under the public-private partnership has become operational with a goods train traversing the Palanpur-Samkhiali link. Pipavav Rail Corporation Limited has been given a go-ahead to offer containerized services. The company has emerged as the first player to receive an approval to run container operations on the rail track.

Airports

Gujarat has the highest number of airports in India. The state has 14 airports including an international airport at Ahmedabad. The hub and spoke policy has been adopted in the airways sector. The state plans to develop Ahmedabad and Surat as international airports that would be hubs for that would be hubs for transporting high volume cargo. The state plans a second international airport and plans to invest Rs. 1200 crore on it.

Communication

Nearly 50,000 km of optical fibre network in Gujarat is the largest in Asia and second largest in the world. Gujarat is the state with the highest teledensity & maximum number of Internet service providers. At the end of March 2003, the telephones per 100 population in the state worked out to be 5.89

Road Network

Gujarat has a well laid out road network exceeding 74000 kms. The existing road network exceeding 74,000 kms. The existing road network in the state of Gujarat is rated as one of the best in the country. There has been a tremendous increase in the share of road transportation. Most of the roads are surfaced roads and the growth in surfaced road length has been significant. Most of the roads are getting laned. The road policy includes imparting connectivity to all villages by all weather roads thereby improving quality of life in rural areas. It also includes developing adequate and efficient road system encompassing all transportation needs to ensure smooth and uninterrupted flow of goods and passenger traffic. Constant upgradation of the technology by induction of superior and quicker construction methods and setting high standards of road safety and travel comforts are also part of the policy. The state government has sought private sector participation in construction of roads over bridges at locations where heavily congested arterial routes cross busy rail link.
The total length of road (except non- plan, community, urban and project roads) was 74,018 km by the end of 2001-02. The length of surfaced roads was 70, 702 km at the end of 2001-02.

Power Sector

Gujarat has emerged as the energy hub of India. The state of Gujarat received the India Tech Excellence Award 2005 for being the most progressive and dynamic state has received. The energy sector is high on state priority in the planning process. The state government has initiated the reforms process in the power sector and has streamlined 100 percent electrification of the villages.

The power generation capacity in Gujarat State was about 9,288 MW, as on 1st July 2006. There are 20 power stations in the State, of which 10 plants are owned by Gujarat State Electricity Corporation Limited, 7 plants are owned by the private sector and one plant has share of the Central Government Utilities. Various fuels being used in the State are Coal (50%), Lignite (8%), Oil (6%), Gas (23%), Hydro (8%) and Atomic (5%).

The power generation in Gujarat is targeted to increase to 16,000 MW capacity by the year 2012 to meet the peak demand. In order to achieve these targets, the State Government is keen to develop independent power projects in the State through private and/or public sector investments.

Natural Gas

Gujarat produces natural gas and definite plans have been made to utilize the gas for power generation. Hazaria and Dahej terminals are being developed as the gateway to gas based prosperity. Apart from this, two more LNG import terminals have been planned at Maroli and Pipavav. A 2200-Kilometer gas grid, the longest in the country, is being laid in the state to provide gas to households through taps. This gas will be supplied directly from onshore gas fields and the two LNG terminals at Dahej and Hazaria. The recently commissioned liquefied Natural Gas terminals in Dahej stand to further augment the capabilities in the power sector and benefit the industry.

Gas Grid Projects in the State

Social Infrastructure

Gujarat is one of the leading states in terms of labour productivity and a large proportion of the state is engaged in running owned businesses. The government of the state is committed to providing better education, training and healthcare to the population.

Education

The state's literacy rate stands at 69.1 percent, which is higher than the national average of 65.38 percent. Gujarat has created a network of quality educational institutions, which provide world-class professionals. The state lays strong emphasis on both- elementary and higher education and has been taking steps to encourage both. The state houses a good number of institutes that provide education in every field. The elite institutions of the state like Indian Institute of Management, Nirma Institute of Technology and Dhirubhai Ambani Institute of Information and Communication Technology among others are known worldwide for their quality education and research. The outstanding research institutes viz. Institute for Plasma Research, Physical Research Laboratory (PRL) are doing their best in experimenting plasma physics and its industrial application. The state has a total number of 15 universities including deemed to be universities and institutes of national importance.

Health

The government has expanded the health infrastructure, involving greater number of health personnel and integration of promotive, preventive, curative and rehabilitative health services. The Department of Health and Family Welfare is striving for the attainment of health for people through wide network of the Government Health Care delivery system. The state assigns due importance to public health and hospitals with modern healthcare facilities are being established at all important centres in the State, A number of state-of-the-art hospitals have come up in the recent past in Gujarat.

Government of Gujarat is committed to provide better civic facilities, particularly in health sector by adopting privatization approach. The Government is planning to privatize all 23 district Civil Hospitals, in addition to 6 hospitals attached to Medical Colleges and Primary Health Centers in the state. For the purpose, the State Government had invited proposals from private sectors to take over these hospitals, which have a cumulative strength of over 4000 beds. Corporate giants engaged in pharmaceuticals and health care sectors such as Apollo Hospital, Wockhardt, Cadila and Torrent have already evinced interest in taking over some of these hospitals and are now awaiting final decision of the Government. At the same time the State government is planning to involve NGOs for privatization of around 1000 Primary Health Centers and 272 Community Health Centers.

During the period April- December 2005, the state covered 668 villages under the drinking water facility

Major Industries

Agro and Food Processing

Agriculture in Gujarat forms a vital sector of the state's economy. It has to provide the required food grains for the state's population and raw materials for most of the agro-based industries. Gujarat witnessed Impressive Agriculture Performance in last five years (2001-05), with an average growth rate of 24.11%.

Advantage Gujarat - Agriculture sector

• Integrated Water Management and assured irrigation
  
• Diversified Crops and Cropping systems
  
• Climatic diversities - 8 agro climatic zones
  
• Abundant natural resources suitable for a variety of commercial crops
  
• Strong Agri Marketing system, Agro based Industries & Co-operatives
  
• Strong agri research capabilities
  
• Enterprising Farmers having business instincts

The major food crops in the State are Rice, Wheat, Jowar, Bajra, Maize, Tur, Green Gram, and Groundnut while major non-food crops are Cotton and tobacco.

Gujarat is a leading producer of various agricultural crops within India as well as worldwide. The state is the leading producer of, Castor, Tobacco, Isabgul (Psyllium) and the second largest Producer of Sesame seeds, Cotton and Groundnut in the country. The state has highest productivity in, Mustard, Castor and Cotton, Second highest productivity in Groundnut and Bajara and third highest productivity in Gram, Guar, Banana and Isabgul in India. Gujarat assigns high priority to the agriculture sector and has formulated a comprehensive agro industrial policy and a vision 2010 document for development of agriculture and agro based industries.

The new industrial policy (2000) of the state identifies agro industries as the major thrust area. The policy aims to spur investments in agro processing, agro infrastructure and hi tech agriculture by monetary and non-monetary incentives. The key features of the state policy are:

• Assistance in preparation of project reports.
  
• Assistance in setting up of excellence / specific crop development institutes.
  
• Assistance in quality certification.
  
• Assistance in patent registration.
  
• Airfreight subsidy for agro exports.
  
• Assistance in research and development activities in the sector.
  
• Equity participation in joint sector format to facilitate private investment
  
• Provision of government land on long lease basis at concessional rate.

The Gujarat Agro Vision 2010 has been formulated with defined growth parameters of gross state domestic product, per capita income and increase in non-farm income of rural population due to multiplier effect. The main programmes included in this Vision are land reforms, water shed development, increase in irrigation potential, and use of drip irrigation systems, special emphasis on horticultural development, use of biotechnology, improved seeds, bio-fertilizers, strong marketing structure and proper preservation and storage of agricultural produce etc.

Biotechnology

Introduction

Biotechnology is defined as a set of techniques for industrial exploitation of biological systems or processes. It encompasses any technique that uses living organisms to make or modify products, to improve plants or animals or to develop microorganisms for specific uses and involves applying molecular and cellular biology, plant, animal and human genetics and immunology in order to create new products. Conventional techniques of producing biotechnology products, using traditional microbiological fermentation, have evolved, with the development of modern technologies. Modern biotechnology entails use of cell fusion techniques, bio-informatics (use of information technology for documenting bio-diversity and study DNA structures), genetic engineering, structure based molecular design and recombinant DNA technology (insertion of foreign gene) and hybridoma technology (fusing and multiplying cells). Biotechnology has transformed many parts of the chemical industry, agriculture, and medicine.

After becoming an IT bellwether, India is now shifting its focus to the next promising industry, biotechnology. Numerous companies have sprung up to take a piece of the exponentially growing biotech market. The ever-decreasing physical boundaries enable biotech companies to tap large markets around the world. India to this extent holds a good advantage over other countries.

The Biotech Industry is progressing at a rapid growth rate of nearly 40 per cent, with an annual turnover of US$ 1.07 Billion in 2005. It is estimated that the consumption of biotech products in India could grow to the tune of US$ 4270 million by the year 2010. Today, the Indian biotech sector stands fourth in terms of volume and thirteenth in terms of value.

Biotechnology in Gujarat

Gujarat's thriving Pharmaceutical and agricultural sectors are driving its biotech industry, which already has a strong foundation in the state and is well supported by academic and research institutes. Further, specialized biotech park, skilled workforce, government support and ethnic diversity provide the investor with the ideal platform for clinical and contract research, application in agriculture, food and marine technology.

The state government of Gujarat, in its resolve and continued efforts for socio-economic upliftment of the society, has identified biotechnology as single most potential tool of development. The state intends to promote biotechnology sector by building appropriate image, encouraging entrepreneurship, strengthening organizational colorations and forecasting business partnerships. For facilitating the development of biotechnology in the State, Government of Gujarat has constituted Gujarat State Biotechnology Mission, under the aegis of Department of Science and Technology.

Agriculture Biotechnology

The agricultural biotechnology industry is gaining importance in Gujarat due to its sizeable agrarian economy, which contributes significantly to the country's GDP. A higher percentage of the agricultural land is used for cultivation in the Central Gujarat. While, Valsad has become India's first integrated horticulture district, Kaira, Baroda, Bharuch and Surat districts are the main contributors to the agricultural production of the State.

Stakeholders representing industry, NGOs, Government PSUs and Government laboratories, have played a significant role in the growth of the agri-biotech segment in Gujarat. The corporate scene has presence of players both of national and international origin, the value chain focus being manufacture of bio-agri inputs. In terms of R&D activity, ICAR funded labs namely NRCMAP and NRCG have created valuable knowledge repositories in terms of the research projects undertaken by the scientists and well-trained researchers at these labs.

The State was amongst the first ones to allow field trials of Bt cotton in the country. With the growing R&D spend of the global agri-biotech companies and enhanced clarity on the IPR issues, the country at large and Gujarat in particular, can leverage the diverse agro climatic topography to play a significant role in the agri-biotech scene. The agricultural biotechnology industry is gaining importance in Gujarat due to its sizeable.

The major thrust areas of the corporate players in Gujarat agri-biotech industry include tissue culture, bio-fertilizers and bio- pesticides.

Food Biotechnology and Nutraceuticals

Food biotechnology refers to the use of biotechnology to enhance the production, nutritional value, safety, and taste of edible products. It is being recognized that genetic modification is indeed a more efficient and precise way to achieve the benefits of food improvement. Often referred to as phytochemicals, the nutraceuticals and natural extract market includes nutritional supplements, functional foods, natural products and herbs. Together they constitute the "Wellness Industry". Functional foods and vitamins, minerals and supplements (VMS) sub segments constitute the key focus areas.

The State's enormous success in the dairy industry is exemplified by the presence of one of the country's premier food company viz. AMUL. The Company has been a role model for the cooperative sector in India. With its constant zest for innovation, the Company has the widest range of dairy based food products. It has a strong R&D team backed by a competitive marketing and branding team. Vadilal, an established brand in the processed food segment processes and markets a wide variety of fruits, vegetables and ready-to-serve Indian Foods. Over the last decade the Company has acquired a prominent position in India and established itself as one of India's leading manufacturers / exporters in this sector.

Gujarat also has a large unorganized natural extracts and nutraceuticals segment base, constituting several small-scale manufacturers and trading outfits. These companies are engaged in producing herb-based dyes, cosmetics, spices and other consumables.

The State has about 240 ayurved pharmaceutical companies of which about 29 have GMP certified facilities. Ahmedabad, Vadodara, Valsad, Surat, Rajkot and Mehsana have a significant presence of natural extract based industry. Companies such as Unique Pharmaceuticals, JB Chemical, Cadila Pharmaceuticals, Paras Pharmaceuticals and Vasu Pharmaceuticals, which are based in Gujarat, have international linkages in terms of import and export of natural extract products.

Marine Biotechnology

Marine biotechnology is the discovery and application of products and processes derived from marine organisms. It finds wide range of applications in various industries to develop new class of pharmaceuticals, industrial products and processes, vaccines, diagnostics and analytical reagents. It provides new tools and approaches to understand the ecological relationships among marine organisms farmer community in particular and the society at large.

Gujarat has1600 km long coastline considered the longest in the country, which includes two gulf areas Gulf of Kachchh and Gulf of Khambat. Given the longest coastline and the rich marine resources it preserves, the Government of Gujarat is focusing on developing marine biotechnology as a fore area of the biotech sector in the State. Gujarat is India's first State to establish a Marine National Park located 30 kms from Jamnagar in the Gulf of Kachchh region.

Industrial Biotechnology

Gujarat has developed strengths in the industrial enzymes segment over the years. This segment is dominated by entrepreneur led organizations, which initially started as conservative fermentation based outfits and have today evolved as preferred vendors/service providers for multinational companies. The State has been able to leverage its manufacturing strengths in the industrial biotech segment.

Chemicals and petrochemical Industry

Introduction

The Chemical industry is among the oldest Industries in India. It comprises basic chemicals and their products, petro chemicals, fertilizers, pharmaceuticals, paints, gases etc. Indian Chemical industry ranks 12th by volume in the world production of chemicals. This sector contributes about 3 per cent to the economy's Gross Domestic Product. It accounts for 17.6 per cent in the output of the manufacturing sector, 13- 14 per cent in the total exports, and 8-9 per cent in the total imports.

Chemical Industry in Gujarat

Gujarat's chemicals sector is one of the fastest growing sectors. The state contributes to more than 20 percent of India's chemicals output. The exports from this sector are globally competitive and the leading destinations for export are USA, Europe and other developed nations. The state houses four petrochemical complexes, two large petroleum refineries and six large chemical- fertilizer complexes.

Gujarat manufactures 100% soda ash in the country and has an impressive share of 85% in salts production. State's share in other areas are as follows: Ethylene (50%), polymers (56%), LAB (37%), phosphatic fertilizers (38%), nitrogen fertilizers (20%), etc.

Gujarat Industrial Development Corporation (GIDC) has set up mega estates, particularly for chemicals at Ankleshwer, Panoli, Vapi, Vatva, Jhagadia, Vilayat and Dahej to facilitate further development and growth. Private investment in SEZ and the proposed plans to have a PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region) at Dahej are bound to change the industry scenario of the whole country in general and Gujarat in particular.

The factors responsible for the spectacular growth of the chemicals sector in Gujarat are:

• A strong base of petrochemical industry
  
• Increasing availability of basic feed stock
  
• Relatively low overhead cost
  
• Availability of necessary infrastructure
  
• Trained and technical manpower and
  
• High degree of entrepreneurship.

Chemicals and Petrochemicals Industry in Gujarat

Pharmaceutical Industry

Introduction

The Indian pharmaceutical industry valued at $12 billion has portrayed tremendous progress with reference to infrastructure development, technology base creation and a wide range of production. The domestic market in India is estimated to be at US$ 12 billion by 2010.The pharmaceutical industry produces bulk drugs belonging to major therapy groups. India ranks 4th worldwide accounting for 8 per cent of the world's production (In terms of Volume) and 1.5 per cent (In terms of value). The industry has developed Good Manufacturing Practices (GMP) facilities for the production of different dosage forms.

The pharma industry exports drugs and pharmaceuticals worth over $ 3.8 billion. It ranks 17th in terms of export value of bulk actives and dosage. Indian exports cover more than 200 countries including the highly regulated markets of USA, Europe, Japan and Australia.

Pharmaceutical Industry in Gujarat

Gujarat boasts of high investment levels in the pharmaceutical sector worth over US$ 2.25 billion indicating significant opportunities for investors. Gujarat offers distinct economic advantages to large pharmaceutical companies who are looking to reduce their time-to-market on new products and save costs within the same period. These include:

• Cost-competitive research base
  
• Large and skilled workforce
  
• Skills in process chemistry
  
• Globally harmonized regulations
  
• cGMP compliance of international standards and FDA approved manufacturing facilities
  
• 100 companies with WHO compliant manufacturing units

The state of Gujarat houses a number of renowned foreign and domestic firms in the pharmaceutical and drug sector. The leading multinational corporations having operations in the state include Wyeth, Sanofi Aventis, Abbott, Sidmak laboratories, Mission Pharma Logistics and Transpek-Silos industry. On the domestic front, several large players such as Zydus Cadila, Cadila Pharma, Alembic Pharma, Torrent Pharma, Sun Pharma and Intas Pharma have made their presence in the state.

Engineering industry including Automotive industry

Introduction

The engineering sector is the largest segment of the overall Indian industrial sector and is recognized as a key driver for the development of other sectors of economy. This sector is experiencing robust growth as India has a strong base in engineering and capital goods. The engineering sector employs over 4 million skilled and semi-skilled workers (direct and indirect). The Indian engineering sector's future outlook is promising because of high industrial growth, infrastructure development and favorable policies. Indian engineering goods are also gaining acceptance in overseas markets, with exports of engineering goods increasing to USA, UK, Germany, Netherlands and France. According to Engineering Exports Promotion Council (EEPC), engineering exports could touch US $ 30 billion by 2008-09.

As for the automotive sector, it is one of the core industries of the Indian economy, whose prospect is reflective of the economic resilience of the country. With 4% contribution to the GDP and nearly 5% of the total industrial output, the automotive sector has become a significant contributor to the exchequer. Continuous economic liberalization over the years by the government of India has resulted in making India as one of the prime business destination for many global automotive players. The automobile industry witnessed a growth of 19.35 percent in April July 2006 when compared to April July 2005. Overall automobile Exports registered 33 percent growth rate in April - July 2006 over the same period last year. Passenger Vehicles Exports grew at 17.85 percent. Two Wheelers Exports grew by 34.08 percent and Commercial Vehicles by 32.08 percent.

Engineering and Automotive Industry in Gujarat

Gujarat's engineering sector accounts for 33 percent of industrial units, 26 percent of industrial employment and 17 percent of industrial production. Currently, 275 projects with an investment of US$ 3.77 billion are under implementation. Gujarat's economy and overall development has gathered tremendous momentum over the past few years and specifically, engineering industry has witnessed impressive growth and development. Many multinational companies such as Sandvik Asia, FAG Bearings, Ingersoll Rand/Dresser Rand, ABB, and Hitachi among others have established their manufacturing base in Gujarat.

Various engineering industries are spread all over Gujarat - Castings & Forgings (Ahmedabad, Rajkot, Vadodara), Brass Parts (Jamnagar), Diesel Engine and Parts (Rajkot), Textile Machinery Parts (Surat, Surendranagar), Automobile components (Ahmedabad, Rajkot), Machine Tools (Rajkot), Air & Gas Compressors (Ahmedabad), Industrial valves (Ahmedabad), etc.

In Gujarat, Automobile sector has been growing tremendously in the last few years. General Motors have set up their unit near Vadodara. The automobile components are manufactured mainly at Ahmedabad, Rajkot and Vadodara. The presence of engineering, foundry and casting industries in the State enables the sourcing of local components required for the automobile assembly/passenger cars.

The state of Gujarat has huge potential for new investments in this sector. The projects that offer investment opportunities are Pre-Engineered Steel Building, High Pressure Cylinders, Submerged Arc Welded (SAW) Pipes, Investment Casting, Manufacture of automobile components, and setting up automobile assembly units. There is also possibility of foreign collaboration with local companies to upgrade their technological capabilities, which would enable them to offer world-class products.

Gems and Jewellery

Introduction

The Gems and Jewellery industry has an important role in the Indian economy. While a predominant portion of gold Jewellery manufactured in India is for domestic consumption, a predominant portion of rough, uncut diamonds processed in the form of either polished diamonds or finished diamond jewellery is exported. With an estimated consumption of 722 tonnes during calendar year or CY2005 (including jewellery consumption of 587 tonnes), India is the largest consumer of gold in the world. India is also estimated to hold nearly 14,000 tonnes of gold, accounting for nearly 9% of the world's cumulative mine production. The Gems and Jewellery industry contributes around 15% of India's exports. Exports of Gems and Jewellery aggregated Rs. 688.30 billion (US$15.55 billion) during FY2006, accounting for 15.1% of India's exports.

The bulk of the Indian gems and jewellery exports comprise import of rough diamonds, cutting and polishing in India, and re exporting. As per data released by the Gems & Jewellery Export Promotion Council (GJEPC), cut & polished diamonds (CPDs) accounted for 71.1% of India's Gems and Jewellery exports of Rs. 733 billion during FY2006, followed by gold jewellery (23.2%), rough diamonds (3.4%), and others (2.3%).

Gems and Jewellery in Gujarat

Gujarat is the leading State in India in gems and jewellery sector, as it contributes to about 72% of the total exports of India. Gujarat has a well-established diamond industry. Diamond processing and trading unit are spread across the State in cities such as Surat, Ahmedabad, Palanpur, Bhavnagar, Valsad and Navsari. Gujarat accounts for about 80% of the diamonds processed and 90% of the diamond export from India. Surat has 65% share in India's diamond trade. Out of ten diamonds in the world, 8 are processed in Gujarat. The state of Gujarat is an ideal location for designing, manufacturing and marketing of gold jewellery. The advantages of investing in diamond processing in Gujarat are:

• Low cost, economic and skilled labour
  
• Availability of large number of skilled labour
  
• Upcoming Diamond Park and gems and jewellery special economic zones
  
• Presence of state of the art institutions such as Indian Diamond Institute (IDI), National Institute of Design (NID), National Institute of Jewellery Design (NIJD) and National Institute of Fashion Technology (NIFT)
  
• Well developed market
  
• Easy availability of institutional and Bank finance
  
• Relaxed government rules and regulations
  
• Other competitive world centres like Hong Kong, Thailand, Taiwan, Korea, U.S.A., Italy, etc. are becoming costlier with decreasing availability of skilled labour

Investment Opportunities

• Setting up of diamond processing centers and gold jewellery manufacturing units.
  
• A gold refinery can be set up to meet the demand of gold.
  
• Assaying and hallmarking centre is another opportunity due to increasing quality consciousness for hallmarked jewellery.
  
• Jewellery Artisan Training Centers are also indispensable as skilled and trained work force would be required for continuous innovation of products and processes

Information Technology (IT) and Information Technology enabled Services (ITeS)

Introduction

Over the past decade, information technology industry has become one of the fastest growing industries in India. The software and ITES exports from India grew from US$12.9 billion in the year US$ 17.7 billion in 2004-2005. Strong demand over the past few years has placed India amongst the fastest growing IT markets in the Asia- Pacific region. The Indian software and ITES industry has grown at a CAGR of 28 percent during the last five years. The industry's contribution to the national GDP has risen from 1.2 percent to a projected 4.8 percent during 2005-06.

India has a competitive advantage with respect to this sector owing to cost advantage, skilled manpower advantage, reasonable technical innovations, Indian domestic market growth and multi- country service delivery capabilities among others.

India has attracted huge investments from overseas in this sector and major leading multinationals such as Microsoft, SAP, IBM, Dell, and GE. The existing MNCs are operating in a competitive environment with global Indian players such as Infosys, TCS, Wipro and Satyam being present on the industry.

Information Technology (IT) and Information Technology enabled Services (ITeS) industry in Gujarat

The growth of software exports in Gujarat (CAGR of 47 percent between 1999-2005) indicates the potential available in the IT sector. Gujarat is emerging as a major hub for IT activity through various approved and proposed SEZs. Several IT SEZs, an IT corridor, a knowledge city, and three IT complexes, amongst others are some of the proposed initiatives in the sector signaling the growing focus on the IT sector.

Gujarat is today emerging as a preferred destination particularly for large businesses like ITES/BPO due to its excellent offerings on the following parameters:

• HR Availability and cost advantage
  
• Conducive Power and Telecom Infrastructure
  
• Suitable Real Estate Availability & its Cost
  
• Government Support and Incentives

Major Achievements of the State:

• Two Incubation centers for Software, Business Process Outsourcing and Call Centers have been set up at Infocity, Gandhinagar.
  
• MphasiS has set up a BPO unit in Ahmedabad
  
• TCS is setting up its development centre at Gandhinagar
  
• Effective Teleservices, Gandhinagar has successfully expanded its operations to Vadaodara.
  
• Sharp increase in BPO seats in 4 years - 20 fold jump, from 500 to over 11,000s
  
• Leading Real Estate Developers like EMMAR, DLF (Associated with Laing O' Rourke), Infinity have shown interest in development of IT SEZ at multiple locations.
  
• K.Raheja Corp is developing Mindspace IT SEZ in Gandhinagar.
  
• Setting up of 4 mini STPI Parks (Software Technology Park in India) each at Rajkot, Jamnagar, Bhavnagar and Surat is under active consideration.
  
• Two Infocity Towers of about 2,50,000 sq. feet each, are already completed whereas third tower is under construction

Government Support to the IT sector:

As per Draft IT policy 2006-2010, Government proposes to provide following incentives to IT & ITES Industry:

• Mega IT projects: On case to case basis, a special package of incentives may be offered for mega IT projects with investment above USD 10.7 Million.
  
• High Tech Park: IT park will be provided financial assistance at the rate of 50 percent of fixed capital investment in land, buildings, and infrastructure facilities up to of US$ 0.537 million.
  
• Exemption from Stamp Duty: the developer of IT park will be eligible for exemption from payment of stamp duty on purchase of land.
  
• Exemption from Electricity Duty: all new information technology units have been exempted from electricity duty fro 5 years.
  
• Exemption from Power Cuts: the IT and ITeS unit will be considered eligible for exemption from power cuts.
  
• Simplification of Labour Laws

Textiles and Apparel Industry

Introduction

The textile industry plays a crucial role in the Indian economy. The presence of textile sector can be felt through its share of contribution to the industrial output, employment generation and the export earnings of the country. Currently, it contributes about 14 percent to industrial production, 4 percent to the GDP and 16 percent to the country's export earnings. The textile sector is the second largest provider of employment after agriculture and provides employment to about 35 million people.

Textile exports contribute substantially to the country's export earnings. In 2004- 05 they contributed 16.24% of the total export earnings of the country. In quantum terms they were US$ 13 billion and during April to November 2005, these grew by 8.2% over the corresponding period of the previous year. The overall target for 2005-06 has been fixed at US$15.565 billion. The export basket includes a wide range of items viz. cotton yarn and fabrics, man-made yarn and fabrics, wool and silk fabrics, made-ups, and a variety of garments.

Textile and Apparel Industry in Gujarat

The textile and apparel industry in Gujarat has made rapid advancements over the years. The state of Gujarat is the largest supplier of denim in Asia. Gujarat is also a leader in fabric processing and production. The state boasts of being the largest producer of cotton in India. Availability of both natural (cotton) and man-made fibres as a basic raw material along with non-woven fabric manufacturing base makes Gujarat an ideal location for the potential investors.

The opening up of quotas coupled with incentive schemes such as Technology Upgradation Fund is providing further boost to the textile clusters of Gujarat. The investment in the State is largely from groups like Arvind, Aarvee, Raymond, Century Textiles, Gujarat Heavy Chemicals Limited, Welspun, etc.

Tourism

Indian tourism is one of the most diverse products on the global scene. India has 26 world heritage sites. It is divided into 25 bio-geographic zones and has wide ranging eco tourism products. Apart from this, India has a 6,000 km coastline and dozens of beaches. India's great ethnic diversity translates into a wide variety of cuisine and culture. India also has a large number of villages, plantations and adventure locations. India is home to a great variety of wildlife and its reserves are well known throughout the world. It also has one of the world's biggest railway systems opening possibilities for those interested in rail tourism. India also has excellent hospitals offering affordable medicare and traditional healthcare systems like Ayurveda. In addition to this India organizes numerous fairs and festivals, which are quite attractive to foreigners.

International tourist arrivals rose and stood at 3.59 million in 2005. The upward trend is expected to remain steady in the coming years. Tourism is the third largest net earner of foreign exchange for India recording earnings of US$ 5731 million in 2005, a growth of 20.2% over 2004. The sector also provides employment to a large number of manpower. The contribution of the tourism sector is around 5.9% of the GDP. The World Travel and Tourism Council (WTTC) has identified India as one of the leading growth centres in the world in the coming decades.

Tourism industry in Gujarat

Tourism is one of the most important sectors to be exploited in the coming years in the state. Activities like religious and archeological tourism, heritage, corporate tourism, coastal and beach tourism, adventure tourism, highway tourism etc are being encouraged. The State thus offers scope for investment in tourism -related activities in the form of accommodation projects, food oriented projects, amusement parks and water sports, handicraft village complexes, sea/river cruise, safari project, sports/health facility complexes, etc. The Government would also like to encourage service-oriented projects like travel operation, tour operation, transport operation, etc.

The state gives due importance to medical tourism. Gujarat offers low-cost, high value medical care in super- specialty areas of cardiology, neuro-surgery, orthopedics, and eye surgery. Other services such as dental treatment and cosmetic surgery are also offered. The investor has an advantage of qualified specialists and English speaking skilled workforce.

Leading Business Locations

Industrial Parks in Gujarat

Over the last 40 years, GIDC has played a pioneering role in provision of industrial infrastructure to the prospective industries. Currently, it has 248 sanctioned estates, out of which 182 are currently functional. The details of the land acquired, developed and allotted in various districts / estates of Gujarat is available in the section on Details of existing Industrial Estates.

Major GIDC Industrial Estates

Special Economic Zones in Gujarat

Gujarat is one of the leading states in terms of the number of SEZs proposed. The Table below gives the status of the SEZs in Gujarat:

Kandla Special Economic Zone
(Multi- Product SEZ)

Kandla Special economic Zone (KASEZ) was set up in 1965 as a Free Trade Zone. The zone took its new birth when in November 2000 in the form of special economic zone after the central government announced the SEZ scheme in April 2000. Zone provides direct employment to over 11,000 persons and is therefore a major manufacturing hub. The zone has maintained high rate of value addition and net foreign exchange earning.

The SEZ legislation has brought about a sea change in the character and composition of new industrial units being set up at KASEZ. Apart from 10 units set up in 2005-06, at least 24 more new units are likely to be added this year with a projected annual exports exceeding Rs. 1000 crores. First of the Free Trade Warehousing Zones (FTWZ) in the country is likely to come up in the extended area with world class infrastructure facilities for international trading activities. FTWZ is a new initiative in the SEZ act to promote international trade.

The area of the zone is being extended by 300 acres due to surge in demand for space.

Surat Special Economic Zone

Surat Special Economic Zone (SurSEZ) is the country's first and only private sector SEZ set up by Diamond & Gem Development Corporation (DGDC). The zone is located in the centre of highly industrialized belt stretching from Ahmedabad to Vapi. It was converted from a Export Processing Zone to a Special Economic Zone (SEZ).

Important Industrial Locations

Jhagadia

Jhagadia is one of the largest industrial estates developed by GIDC over an area of 1700 hectares. The estate is primarily planned for chemical and pharmaceutical industries as well as other water intensive industries. Accordingly, infrastructure in terms of power, water and effluent disposal has been developed.

Dahej

Dahej, a port location in South Gujarat offers facilities of a chemical port terminal. IPCL has set up a 4.5 million tonne capacity petrochemical Complex. In addition, an LNG terminal by Petronet and a solid cargo port are under construction. Adequate land is being developed by GIDC for chemicals and downstream petrochemical industries. Infrastructure in the form of power, water and effluent disposal is available.

Vilayat

Vilayat is located at about 20 km. from Dahej. Developed for chemical downstream industries, the estate is spread over 985 hectares of land and infrastructure facilities like water, road network, power supply and effluent disposal are in place.

Savli

Savli, well connected by road network is located just 15 km. from the city of Vadodara. The industrial estate is spread over 770 hectares of land. Infrastructure in the form of road, water supply and power has been well developed. An Export Processing Industrial Park is also developed within the estate. A special zone for bio-pharma industries is earmarked in the estate. A good location for engineering, plastics, export-oriented units, biotechnology and other non-polluting industries.

Mundra

Mundra is located in Kutch and has emerged as an important port in the recent past offering 15 meters of draft -the maximum in the country. This port is developed in the private sector and likely to emerge as an important hub for industrial and commercial activities in the near future. A Special Economic Zone is also planned at this location.

Investment and industrial policies

Gujarat Industrial Policy 2003

Gujarat Industrial Policy 2003 emphasis on quality upgradation in manufacturing industries. The Government of Gujarat recognizes the importance of this important factor and has therefore, decided to extend its scheme of quality upgradation to reimburse the expenses incurred for acquisition of quality certification by industrial units.

Full text of the Policy (.pdf)

Power Policy

The Government of Gujarat has given highest priority to the development of power sector.

Objectives of the Power policy

• Plan and build up adequate capacities in generation, transmission and distribution of power through efficient and cost effective means.
• Achieve optimum utilization of existing equipments and assets through renovation and modernisation.
• Rationalize the tariff structure to ensure reasonable rate of return to power utilities and generate surplus needed for future investment.
• Improve delivery of services and achieve cost effectiveness through technical, managerial and administrative restructuring of the utilities.
• Achieve conservation of energy through efficient utilization and demand side management, and minimizing waste.
• Encourage generation of power through non- conventional sources of energy.

Full text of the Policy (.pdf)

Port Policy

Objectives of the policy

• Increase Gujarats share in the Export and Import sector, in national and international Trade & Commerce, in pursuance of liberalisation and globalisation policy.
• Decongest the overburden on existing major ports on Western India to cater to the needs of incresing traffic of western and northern States, by providing efficient facilities and services and to support the countrys domestic and international trade.
  
• Handle 100 million tonnes of cargo in Gujarat Maritime waters accounting approximately for 25% Indias total cargo by 2000 AD.
  
• It is estimated that 50% of total industrial investment coming to Gujarat will be port-based. To provide port facilities to promote export- oriented industries and port- based industries.
  
• Taking fullest advantage of the strategic location of Gujarat coast, in the World Maritime Scenario,
  • To encourage shipbuilding, ship repairing and estalish manufacturing facilities for Cranes, Dredgers and other Floating Crafts.
  • To provide facilities for coastal shipping of passenger and cargo traffic between Kutch, Saurastra and South Gujarat and further extension of these services to important places like Bombay, Goa etc.
• Fulfill future power requirements of Gujarat,
  • by establishing barge mounted power plants.
  • by providing exclusive port facilities for importing different kinds of power fuels,and
• To attract private sector investment in the existing minor and intermediate ports and in the new port locations.
  

Full text of the policy

Information Technology Policy

objectives of the policy

• Over all IT growth in the state of Gujarat
• Create enormous new employment opportunities in the state
  
• Train and develop skilled manpower in IT
  
• Facilitate information outlets at the doorstep of the common man. This will enable people at large to access information related to - education, i.e. technical and non technical course offered by various institutions, admission procedures, admission list, results etc., health services - like various medical expertise available at different hospitals, on line medical services etc; transport service information - like bus arrival and departure timings, reservation facilities etc. Information Kiosks will also provide the on-line delivery of various application forms to the users irrespective of their location in the state
  
• Make Government-Citizen interface more effective, efficient and transparent
  

Full text of the policy

Tourism Policy (2003-10)

The Government of Gujarat is determined to develop tourism as a key industry to make it an important contributor to the state's economic and social growth and to offer a right blend of business and pleasure. This will be achieved by active participation of private, national and international corporate bodies to bring in their expertise and investment with supportive government policies and facilitation.

Full text of the policy (.pdf)

Agro Policy

The policy seeks to make Gujarat the destination of choice for investors and processors, both global and domestic. The objectives of the policy are creation of a world class supply-chain, promotion of infrastructure important for agro industrial development, close interface between research, extension and industry and farmers in agri sector, providing assistance to small-scale agro based units to improve their competitiveness in global markets and increasing exports of value added agri-products.

The Government shall play a facilitatory role in galvanizing private sector investments in agro industries and agri infrastructure in the State through incentives as well as equity participation in joint sector.

Full text of the policy

Investment Incentives

Investment Incentives in the Industrial Policy 2003

The Government of Gujarat formulated and announced a comprehensive Industrial Policy on 21st September 2003 setting futuristic directions for development. Gujarat provides a conducive Industrial policy and various incentives to the potential investors

• Scheme of Financial Assistance to the Industrial unit for Quality Upgradation
  
  
  • The scheme will be known as financial assistance to the industrial units for technological upgradation.
    
  • The scheme is applicable to all SSI/SSSBES with respective DICs or a medium or large units which has obtained approval under industries (development and Regulation) act 1951 as amended from time to time with respect to industrial policy.
    
  • An eligible unit incurring expenditure for acquiring quality mark such as BSI, ISO 9000 series, ISO 14000 series and ISO 18000 series and other products specific quality mark such as WHO GMP,CE, HACCP and others as recognized by the government will be entitled to avail financial assistance towards expenditure incurred.
    
  • Expenditure on following items shall be considered
    • Payment made to certification agency.
      
    • Cost of acquiring new testing equipment as suggested by certification agency.
      
    • Expenditure towards calibration charges of testing equipment, training cost of personnel conducted by certification agency for acquiring quality certification.
      
  • The total quantum of assistance will be 50% of the eligible expenditure subject to maximum limit of US$ 4340.20.
    
  • The unit, which has availed financial assistance for BIS quality certification, will be entitled for ISO series and other quality marks.
    
  • However maximum assistance will be restricted to US$ 4340.20 per unit under this scheme.
    
  • Total financial assistance under the scheme of the state government as well as assistance from government of India will not exceed 50 percent of the total expenditure incurred by the unit.
    
  • Expenditure for renewal of any quality mark will not qualify for assistance under this scheme.
• Interest Subsidy Scheme for Small and Medium Enterprises
  • Interest subsidy will be available for establishing new units or for expansion/diversification and modernization of existing units.
  • The unit must start commercial production within the operative period of the scheme.
  • Maximum interest subsidy at the rate of 5 percent will be available to SME. However, unit will be required to pay minimum 5 percent interest per annum to the financial institutions. Accordingly, if the rate of interest is less than 10%, the interest subsidy shall be reduced to that extent. If the unit is availing benefit under government of India scheme, total interest subsidy by Government of India and state Government shall be granted in such a way that the unit shall have to bear minimum 5 percent interest on the loan.
    
  • The interest subsidy will be available only on interest levied by the financial institution. Penal interest or other charges will not be reimbursed.
    
  • The interest subsidy will be available for maximum 5 years limited to maximum of US$10852.54 per year. The total interest subsidy will not exceed US$ 54,264.74 in five years period.
    
  • The interest subsidy will be for 5 years or the period of repayment of loan whichever is earlier.
• Assistance to Research and Development Institutions and R&D
  • The quantum of assistance to proposals received from the R&D institutions will depend on specific proposal, its impact on industrial development, particularly towards small and medium enterprises and the extent of grant available from the state government under plan scheme.
  • Assistance for sponsored research work from industrial unit to R&D institution/college will be in the form of subsidy at the rate of 50% of necessary expenditure incurred towards such activities subject to a maximum of US$ 10852.54
• Scheme for Financial Assistance to Industrial Parks
  • Industrial Park: Industrial park will be provided financial assistance at the rate of 20 percent of fixed capital investment in land, building, and infrastructure facilities upto maximum of US$216,780.09
    
  • Mini industrial Park: financial assistance at the rate of 25% of fixed capital investment upto a maximum of US$ 0.108386.66
    
  • Hi-tech park: financial assistance at the rate of 50%of fixed capital investment in land, building and infrastructure facilities upto a maximum of US$ 542,312.93
    
  • Export Park: financial assistance at the rate of 25% of the fixed capital investment in land, building and infrastructure facilities upto a maximum of US$ 542,312.93
    
  • Stamp Duty: the developer of the industrial park will be eligible for exemption on payment of stamp duty on purchase of land. However, the industrial units in the park will be required to pay stamp duty at the rate of 50% of duty.
• Scheme for Assistance to Critical Infrastructure Projects
  • Under this scheme, assistance will be considered depending upon the requirement of state contribution in the project and normally upto the rate of 50% of the project cost, maximum of Rs. 5 crore per project.
  • The implementation committee will stipulate conditions for the project.
• Scheme for Assistance for Technology Upgradation
  • Financial assistance in the form of interest subsidy@ 3% per annum will be provided on term loan received from financial institutions/banks towards purchase of capital equipments necessary for technology upgradation. The period of assistance will be five years subject to maximum of US$ 6,509.32 per year.
    
  • The amount of subsidy will be given directly to the financial institution/ bank. No penal interest or other charges will be considered.
  • The unit availing assistance under any other scheme of the state government for the same purpose will not be eligible under this scheme.
• Scheme for Assistance to Market Promotion and Development: the eligible activities under this scheme are:
  • Common Branding and Marketing fund.
    
  • Participation in International Trade Fairs in Gujarat Pavilion.
    
  • Participation in exhibitions abroad.
    
  • Assistance for sending product sample abroad.
    
  • Participation in seminar abroad.
    
  • Setting up of permanent exhibition cum conventional center.
    
  • Setting up trade centers at important industrial clusters/locations.
• Scheme for Assistance to Cluster Development
  • The quantum of assistance will be need based depending on the type of the proposal and activities covered by the association besides, technical and managerial capability of the association, level of maturity, administrative set up, past track record, transparency in operations, etc.
    
  • Normally, the financial assistance will range between 25% of the project proposal in case of training expenditure component, 25% to 50%of cost component in other matters. However, the state level committee will take decision depending upon the activities covered in the project.
    
• Scheme for Assistance to Environment Protection Measures: the eligible activities under this scheme are:
  • Waste minimization techniques
    
  • Waste exchange networking centres
    
  • Demonstration projects
    
  • Environment management system
    
  • Environment related studies

Incentives to the IT Sector

As per Draft IT policy 2006-2010, Government proposes to provide following incentives to IT & ITES Industry:

• Mega IT projects: On case to case basis, a special package of incentives may be offered for mega IT projects with investment above USD 10.7 Million.
• High Tech Park: IT park will be provided financial assistance at the rate of 50 percent of fixed capital investment in land, buildings, and infrastructure facilities up to of US$ 0.537 million.
  
• Exemption from Stamp Duty: the developer of IT park will be eligible for exemption from payment of stamp duty on purchase of land.
  
• Exemption from Electricity Duty: all new information technology units have been exempted from electricity duty fro 5 years.
  
• Exemption from Power Cuts: the IT and ITeS unit will be considered eligible for exemption from power cuts.
  
• Simplification of Labour Laws

Incentives to Agro Based Industries

Financial Incentives

Interest Subsidy to Agro Industrial Units

Tiny, small, medium and large agro industrial units shall be given 6% back ended subsidy for 5 years on the interest on term loan, subject to a ceiling of Rs. 100 lacs.

Interest Subsidy to Agri Infrastructure Projects

Agri infrastructure projects shall be given 6% back-ended subsidy for 5 years on the interest on term loan, subject to a ceiling of Rs. 400 lacs on term loan. An illustrative list of agri infrastructure projects includes food/ agro industrial park, cold chain (value addition centre/agro service centre) for horticulture produce, supply chain (value addition centre/ agro service centre) for agricultural produce, chain of retail outlets for perishable products, agri jetty/port and transportation hub, technology incubation and demonstration centre, agriculture biotechnology incubation, auction centres, transit/ terminal markets, information kiosks, quality control laboratories, organic laboratories, etc.

Assistance for preparation of project report

Individuals/institutions shall be reimbursed 50% expenditure of the cost of preparation of a project report for setting up an agro industrial unit, subject to a ceiling of Rs. 5.00 lacs.

Assistance for Setting up of Centre of Excellence/Specific Crop Development Institute.

The specific crop development institute / centre of excellence shall be given 50% of the initial capital investment as assistance, subject to a ceiling of Rs. 500 lacs. If such an institute is established under the Company Law, the assistance shall be provided in the form of equity.

Such institutes/centres shall take up demonstration of agronomic practices, R&D (varietal and derivatives), domestic and international market certification, quality assurance, standards, logistics, patenting, brand promotion, upgradation of technology for processing and packaging, improving and professionalising the terms of trade in the whole chain and such other promotional activities.

Assistance for Quality Certification

Small scale and tiny agro Industrial units shall be given assistance upto 50% of the cost incurred for obtaining quality certification mark from an institute recognised by State Government/ Central Government, subject to ceiling of Rs. 5.00 lacs.

Assistant for Patent Registration

Private, government or co-operative sector units shall be reimbursed upto 50% of the cost of patent registration, subject to a ceiling of Rs. 5.00 lacs.

Air Freight Subsidy

25% subsidy shall be provided on air freight for exports of edible products like mango, chikoo, banana, tomato, and such other products as specified by the State Government from time to time, from the Sardar Patel International Airport, Ahmedabad, subject to a ceiling of Rs. 10.00 lacs per beneficiary. 50% subsidy shall be provided on the actual cost of sending samples and the cost of getting samples passed for export of edible agro item, subject to ceiling of Rs. 50,000/-

Assistance for Research & Development

50% subsidy shall 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 Rs. 20 lacs.

Equity Participation in Joint Sector Projects

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

Land

Land is crucial for backward integration for promoting Industry so as to set up nurseries, research and development facilities, demonstration farms and for captive consumption for consistent supply of material.

The State Government shall provide government land, including agriculture farms, on long lease basis at concessional rates to agro industries and agri infrastructure projects including centres of excellence.

Venture Capital Fund

Having recognized the need for a venture fund to cater to the needs of prospective entrepreneurs who have developed or acquired unique technologies in agro & food Processing, horticulture, aquaculture, sericulture, hi-tech agriculture and such other agro related projects, the State Government shall create a venture fund for agro Industries in association with financial institutions/ banks, etc.

Investment Opportunities

I) Agriculture Sector

• Infrastructure Projects Relating to Agriculture and Horticulture: Vast opportunities are present with respect to development of infrastructure facilities such as Onion Cold Storage, Fresh Fruits-Pack house, Vegetables-Pack house, Mechanized Grain handling and storage at port, Food Parks, Terminal Markets, Spices and Isabgul Irradiation center.
  
• Value added Processing: Potential for investment is present in the field of value added processing based on the local resources. This includes Tomato, Potato Flakes & Powder, Specialty grades- Guar Gum powder, Refined Sugar, Egg Powder, Baker's Yeast, Fish oil extraction.
  
• Natural Resources base Opportunities: Natural food colors, Medicinal Herbs extraction, Neem /Tobacco Oil base Bio-Pesticides, Food Processing Enzymes, and Fish meal base bio-fertilizer.
  
• Newer Technology Base Projects/ Opportunities: Spices Cryo grinding, Freeze Dried Fruit processing Unit, Instant Vegetables in Retort Pouches, Potato Fabricated Chips.
  
• Export Oriented Processing: Peanut Butter, De-hulled Sesame seed & Roasted Sesame oil, roasted, salted & coated nuts. Integrated Shrimp farming & processing.

II) Textile Industry

• Modern spinning with captive power generation
  
• Manufacturing of fabrics and made ups (Made up textiles covers the manufacture of products, such as soft furnishings, cushions, household textiles, household linen, quilts, valances and bedspreads)
  
• Modern energy efficient textile processing
  
• Technical textiles
  
• Apparels with high fashion garments

III) Information Technology

• Software development Centres
  
• Business process outsourcing units
  
• Knowledge process outsourcing firms
  
• Training and educational centres
  
• Graphic animation and designing
  
• Medical transcription units
  
• Bio-IT software development
  
• Embedded software design and development

IV) Mineral Based and Allied Industries

V) Plastic and Allied Industries

VI) Port related activities and infrastructure

VII) Chemical and Allied Industry

Business Opportunities

Project Profiles

• Agro and Food Processing
• Textiles and Apparels
• Chemicals, Petrochemicals and Pharmaceuticals
• Engineering, Auto and Ceramics
• SEZ and Port Led Development
• Power, Oil and Gas
• Gems and Jewellery
• Medical Tourism
• Biotechnology
• Information Technology
• Urban Development
• Tourism

Useful Web Links

Government of Gujarat

Industrial Extention Bureau,Government of Gujarat