Gujarat

AUGUST
2012
THE GROWTH ENGINE OF INDIA

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Gujarat
AUGUST
2012
THE GROWTH ENGINE OF INDIA

Contents
 Gujarat – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Gujarat

 State Acts & Policies

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2
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Gujarat Factfile → Ahmedabad, Vadodara, Surat, Rajkot, Bhavnagar and

Jamnagar are some of the key cities of the state.

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

→ The most commonly spoken language of the state is

Gujarati. Hindi and English are the other Indian languages
used.

Parameters Gujarat
Capital Gandhinagar
Geographical area (sq km) 196,024
Administrative districts (No) 26

Source: Maps of India Population density (persons per sq km)* 308

Total population (million)* 60.3
→ Gujarat is located on the Western coast of India and has the  Male population (million)* 31.4
longest coastline of 1,600 km in the country. The state shares
its border with Rajasthan, Madhya Pradesh, Maharashtra and  Female population (million)* 28.9
the Union Territories of Daman & Diu and Dadra & Nagar Sex ratio (females per 1,000 males)* 918
Haveli. The Arabian Sea borders the state both to the West
Literacy rate (%)* 79.3
and the South-West.
Sources: Government of Gujarat Website, www.gujaratindia.com,
*Provisional Data – Census 2011

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Gujarat in Figures … (1/2)

Parameter Gujarat All-States Source

Economy
GSDP as a percentage of all states’ GSDP 7.5 100 CMIE, 2010-11, current prices
Average GSDP growth rate (%)* 16.6 15.9 CMIE, 2004-05 to 2010-11, current prices
Per capita GSDP (US$) 1,918.3 1,324.3 CMIE, 2010-11, current prices
Physical Infrastructure
Installed power capacity (MW) 21,971.8 199,627.0 Central Electricity Authority, as of March 2012
Telecom Regulatory Authority of India, as of
Wireless subscribers (No) 51,494,090^ 903,727,208
January 2012
Ministry of Communications & Information
Broadband subscribers (No) 834,250# 13,350,938
Technology, as of December 2011
Ministry of Road Transport & Highways,
National Highways (km) 3,281 71,772
Annual Report 2011-12
Major and minor ports (No) 1 + 41 12 + 187 Indian Ports Association
Airports (No) 14 133 Airport Authority of India

*Calculated in Indian Rupee Terms

^Including Daman & Diu and Dadar & Nagar Haveli
#Including Dadar & Nagar Haveli

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Gujarat in Figures … (2/2)

Parameter Gujarat All-States Source

Social Indicators
Literacy rate (%) 79.3 74.0 Provisional Data – Census 2011
Birth rate (per 1,000 population) 21.8 22.1 SRS Bulletin (www.censusindia.gov.in), 2011
Investments
Department of Industrial Policy & Promotion,
FDI equity inflows (US$ billion) 8.0 160.0
April 2000 to January 2012
Outstanding investments (US$ billion) 1,295.1 11,318.3 CMIE (2011-12)
Industrial Infrastructure
PPP projects (No) 74 881 www.pppindiadatabase.com
SEZs (No) 32 386 Notified as of July 2012, www.sezindia.nic.in

PPP: Public Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System

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Gujarat
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2012
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Advantage Gujarat … (1/2)

Facilitating Infrastructure

Gujarat has excellent infrastructure as compared to the other states. There are 42 ports, 13 domestic airports and one international airport.
The state also has extensive road and rail network. The urban and rural areas have 24-hour power supply. A 2,200 km gas-grid supplies
gas to the industrial areas. There are 83 product clusters, 257 industrial estates, 32 notified Special Economic Zones (SEZ) and upcoming
infrastructure on the Delhi-Mumbai Industrial Corridor (DMIC). Almost one-third of the DMIC project is taking place in Gujarat alone.
A Dedicated Freight Corridor (DFC) is being set up between Mumbai and Delhi. Of the 24 industrial nodes identified across six states
where DFC passes, six have been proposed for Gujarat alone.

Industrially Developed State

Gujarat is the ‘Petro Capital’ of India, the state contributes significantly to the country’s petrochemicals production (62 per cent),
chemicals production (51 per cent) and pharmaceuticals production (35 per cent). It has achieved the distinction of being one of the most
industrially developed states. Accounting for 5 per cent of the total Indian population, Gujarat contributes 24.6 per cent to India’s goods
exports.

Availability of Skilled Manpower

Gujarat has good educational infrastructure with premier institutes in management, fashion, design, infrastructure planning and
pharmaceuticals. Also, there are industrial training institutes in each district for training manpower for shop floor level. The State
Government has many initiatives to encourage innovation in the education sector.

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Advantage Gujarat … (2/2)

Policy Support
Gujarat is the only state in India where the State Government has framed policies in almost all key sectors such as industry, power,
ports, road, agriculture and minerals. Gujarat’s Industrial Policy, 2009, offers attractive incentives and concessions for prospective
investors.

Growing Economy and Industry

The average annual GSDP (Gross State Domestic Product) growth rate from 2004-05 to 2010-11, was about 16.4 per cent. A robust
financial growth and presence of diverse industry sectors with leading national and international companies makes it one of the most
attractive investment destinations in the country.

Abundant Natural Resources

Gujarat is a mineral rich state both in terms of capacity reserves and production, as it has large natural reserves of oil and gas and
produces the highest amount of crude oil. It also has reserves of bauxite, limestone and clay deposits in India.

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Economic Snapshot – GSDP

→ At current prices, the Gross State Domestic Product (GSDP) Gujarat’s GSDP
of Gujarat was about US$ 112.6 billion in 2010-11.
2010-11 112.6
→ The average annual GSDP growth rate from 2004-05 to
2009-10 90.1
2010-11, was about 16.4 per cent.
2008-09 80.1

2007-08 81.8

2006-07 62.6
CAGR
2005-06 55.2 16.4%

2004-05 45.2

0 20 40 60 80 100 120

US$ billion
Source: CMIE

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Economic Snapshot – NSDP

→ The Net State Domestic Product (NSDP) of Gujarat was Gujarat’s NSDP
about US$ 96.7 billion in 2010-11.
2010-11 96.7
→ The average annual NSDP growth rate from 2004-05 to
2009-10 77.6
2010-11 was about 16.6 per cent.
2008-09 68.5

2007-08 69.9

2006-07 53.1
CAGR
2005-06 46.6 16.6%

2004-05 38.3

0 10 20 30 40 50 60 70 80 90 100
US$ billion
Source: CMIE

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Economic Snapshot – Per Capita GSDP

→ The state’s per capita GSDP in 2010-11 was US$ 1,918.3 as Per Capita GSDP
compared to US$ 841 in 2004-05.
2,000 1,918.3
1,800 CAGR
→ The per capita GSDP increased at a CAGR (Compound
1,600 14.7% 1,557.2
Annual Growth Rate) of 14.7 per cent between 2004-05 and 1,453.5 1,403.2
2010-11. 1,400
1,200 1,129.3

US$
1,011.4
1,000
841.0
800
600
400
200
0
2004-052005-062006-072007-082008-092009-102010-11

Source: CMIE

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Economic Snapshot – Per Capita NSDP

→ The state’s per capita NSDP in 2010-11 was US$ 1,648.3 as Per Capita NSDP
compared to US$ 712.3 in 2004-05.
1,800
1,648.3
1,600
→ The per capita NSDP increased at an average rate of 15.0 per CAGR
cent between 2004-05 and 2010-11. 1,400 15.0% 1,340.4
1,242.9 1,199.4
1,200
958.3

US$
1,000
853.2
800 712.3
600
400
200
0
2004-052005-062006-072007-082008-092009-102010-11

Source: CMIE

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Economic Snapshot – Percentage Distribution

of GSDP

→ In 2010-11, the tertiary sector contributed 43.2 per cent to Percentage Distribution of GSDP
the state’s GSDP at current prices, followed by secondary CAGR
sector (35.9 per cent) and primary sector (20.9 per cent). 100
90
→ At a CAGR of 18.0 per cent, the primary sector has been the 80 43.9 43.2 16.3%
fastest growing among the three sectors from 2004-05 to 70
2010-11. 60
50
40 16.3%
→ The tertiary sector grew at a CAGR of 16.3 per cent between 36.6 35.9
2004-05 and 2010-11. The growth has been driven by trade, 30
hotels, real estate, finance, insurance, transport, 20 18.0%
communications and other services. 10 19.5 20.9
0
2004-05 2010-11
→ The secondary sector grew at a CAGR of 16.3 per cent
between 2004-05 and 2010-11. It was driven by Primary Sector Secondary Sector Tertiary Sector
manufacturing, construction and electricity, gas & water
supply. Source: CMIE

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Economic Snapshot – Agricultural Production

Annual Production as of
Crop 2010-11
(‘000 metric tonnes)
→ Gujarat has a robust agricultural economy; the total crop area
Sugarcane* 12,400
covers more than 50 per cent of the state’s total land area.
Cotton 9,825^
→ In 2010-11, the total food grain production in the state was Wheat 5,013
around 10.0 million tonnes and the total oilseeds production Banana 3,978
in the state was around 5.1 million tonnes.
Groundnut 3,575
→ Sugarcane is the major crop in the state followed by cotton, Potato 1,881.8
wheat, groundnuts and potato. The total sugarcane Rice 1,666
production in the state was around 12.4 million tonnes in
2009-10. Onion 1,514.1
Bajra (millet) 1,501
→ The other major crops grown in the state include tobacco, Maize 978
coconuts, rice, onion, jowar (sorghum), bajra (millets),
oilseeds, maize, tur and gram. Tobacco 281
Gram 200
→ In 2010-11, banana production in the state was around 3.9 Coconut 108
million tonnes.
Sources: Socio-Economic Review of Gujarat, 2011-12, Indian Horticulture
Database – 2011, National Horticulture Board,
Department of Agriculture and Cooperation, Government of India
^‘000 Bales (170 kgs each)
*As of 2009-10

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Economic Snapshot – FDI Inflows &

Investments

→ According to the Department of Industrial Policy & Break up of Outstanding Investments by Sector (2011-12)
Promotion, the cumulative FDI inflows from April 2000 to
January 2012 amounted to US$ 8.0 billion.
1.3%
5.4% Electricity
→ In 2011-12, outstanding investments in the state were US$
14.8%
1,295.1 billion. Manufacturing
38.3%
Services
→ Of the total outstanding investments, the electricity sector
accounted for around 38.3 per cent followed by Real Estate
16.0%
manufacturing sector at 24.2 per cent.
Irrigation

24.2% Mining

Source: CMIE

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Economic Snapshot – Export Trends

→ In 2010-11, Gujarat contributed 24.6 per cent to India’s total exports of goods.

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

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

→ The total cargo handled by the Kandla Port was 82.5 million tonnes during 2011-12.

→ Gujarat is the largest exporter of cotton (60 per cent) in the country.

Sources: Industries Commissionerate, Government of Gujarat, Socio-Economic Review of Gujarat 2011-12,

Economic Survey of India 2011-12, Ministry of Shipping, Government of India

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Gujarat
AUGUST
2012
THE GROWTH ENGINE OF INDIA

Contents
 Gujarat – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Gujarat

 State Acts & Policies

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Gujarat
AUGUST
2012
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Physical Infrastructure – Roads → Government of Gujarat through Gujarat Infrastructure

Development Board (GIDB) has prepared a vision
document, Blueprint for Infrastructure in Gujarat (BIG) –
2020. It has identified a shelf of projects and investments
required across road sector to be implemented on priority
basis for the inclusive growth of the state.

→ ‘Pragatipath Yojana’, a State Government initiative

introduced in 2005, envisages the development of nine
high-speed corridors and widening of highways to connect
National Highways the tribal, coastal, industrial and rural areas with
mainstream areas.
State Highways

Railways

Road Type Road Length (km)

National Highways 3,281
Source: Gujarat State Road Development Corporation
State Highways 18,460

→ As of March 2009, the state has around 18,460 km of State Major District Roads 20,530
Highways, 20,530 km of Major district roads, 10,254 km Other District Roads 10,254
of Other district roads and 21,628 km of Village roads.
Village Roads 21,628

→ 96.68 per cent of the total roads in the state are surfaced as Sources: Ministry of Road Transport & Highways, Annual Report
of March 2009. -2011-12, Socio-Economic Review of Gujarat, 2011-12

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Physical Infrastructure – Railways → The rail traffic in Gujarat mainly falls under the following
divisions of Western Railway, namely: Vadodara, Rajkot,
Bhavnagar, Ratlam, Mumbai and Ahmedabad.

→ The state had a railway network of 5,271 km as of March

2011.

→ Ahmedabad, Anand, Bhavnagar, Bhuj, Godhra,

Porbandar, Rajkot, Vadodara (Baroda) and Valsad are
some of the important railway stations in the state .

Source: Maps of India

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Physical Infrastructure – Airports → The state has 13 domestic airports (the highest in any
state) and one international airport at Ahmedabad.

→ The Sardar Vallabhbhai Patel International Airport in

Ahmedabad is India’s seventh-busiest airport with an
average of 112 aircraft movements per day in 2011-12. In
Deesa
Palanpur 2011, a new terminal building (terminal 2) was
inaugurated which has been built at the project cost of
Bhuj
US$ 60 million.

Mundra Kandla
→ In addition, there are domestic airports at Bhavnagar,
Mandvi Ahmedabad
Bhuj, Jamnagar, Kandla, Keshod, Deesa, Porbandar,
Vadodara Rajkot, Surat, Vadodara, Mundra, Mandvi and Palanpur.
Jamnagar
Porbandhar Rajkot → A feasibility study for an international airport at Fedra in
Dholera (about 130 km away from Ahmedabad) has been
completed in January 2010. Once ready, the airport could
Bhavnagar Surat
be useful for both passenger and cargo purposes.
Keshod

International Airport
Domestic Airport

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Physical Infrastructure – Ports … (1/3)

Port Infrastructure in Gujarat

→ The state has one of the strongest port infrastructures in

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

→ Gujarat has 42 ports along a 1,600 km coastline, including

Jakhau Kandla
one major port at Kandla and 41 minor ports. Mundra
Navlakhi
→ The state has five direct berthing commercial ports, seven Okha
Jamnagar
Khambhat
direct berthing captive port terminals and four lighterage- Sikka
Positra Dholera
cargo ports. Bhavnagar
Mithivirdi Dahej
Porbandar Magdalla
→ The state handled the largest (73.39 per cent) share of cargo Mahuva
Sutrapada Hazira
Pipavav
traffic in India’s non-major ports, and 14.36 per cent in Vansi
Simar Borsi
India’s major ports in 2010-11. Jafrabad
Maroli
→ The state has two LNG terminals that offer transportation
facilities for natural gas, crude oil and petroleum products Major Ports
from the Middle East and Europe.
Private Sector Ports

GMB Ports
LNG: Liquefied Natural Gas
Source: “Ports of Gujarat” – Sector Profile 2008-09, Gujarat
Maritime Board (GMB)

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Physical Infrastructure – Ports … (2/3)

Main Ports of Gujarat

→ The state has a vast hinterland comprising key Western,
Northern and central Indian states.

→ It also has a large external trade potential given its vast

coastline.
Kandla
Navlakhi
→ The intermediate and minor ports of Gujarat handled a total Mundhra
cargo of 230.9 million tonnes during 2010-11 showing an Okha Jamnagar
increase of about 12.34 per cent compared to the previous Sikka
year.
Porbandhar
Dahej
→ The total cargo handled by the Kandla Port was 82.5 million
tonnes during 2011-12. Hazira
Magdalla
Pipavav
Sources: Socio-Economic Review of Gujarat, 2011-12,
Ministry of Shipping, Government of India

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Physical Infrastructure – Ports … (3/3)

→ Many upcoming ports are being developed as captive ports Key Private Sector Stakeholders in Gujarat’s Ports
to cater to specific company and industry requirements. Sector
Gujarat Adani Port Limited
→ The state undertakes fast-track clearance in establishment of
ports through private participation. Peninsular & Oriental Steam Navigation Company
Gujarat Pipavav Port Limited
→ There is an increase in connectivity to non-major ports Reliance Industries Limited
owing to the development of the Delhi-Mumbai Dedicated
Maersk
Freight Corridor.
Welspun
→ More than 4,800 ships and 1,000 sailing vessels visit the Petronet LNG
ports of Gujarat every year.
Shell

Source: “Ports of Gujarat”, Sector Profile 2008-09, Gujarat Government

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Physical Infrastructure – Power and Gas …

(1/2)

→ As of March 2012, Gujarat had a total power generation Installed Power Capacity (MW)
installed capacity of 21,971.82 MW, which comprised
12,713.44 MW under private utilities, 6,285.90 MW under 24,000
21,971.8
state utilities and 2,972.48 under central utilities.
20,000

→ Of the total power generation installed capacity, 17,141.86 15,722.6

16,000
13,908.1
MW was contributed by thermal power, 772 MW was
12,110.4
contributed by hydro power, 559.32 MW was contributed by 12,000 11,052.0
nuclear power and renewable power contributed 3,498.64
MW of capacity. 8,000

4,000
→ 100 per cent of Gujarat's villages have electricity connection
for 24-hour power through the “Jyotirgram Yojana”. 0
2007-08 2008-09 2009-10 2010-11 2011-12
→ GSPC Gas Company Ltd (a distribution arm of Gujarat State
Source: Central Electricity Authority
Petroleum Corporation Ltd) supplies 4 MMSCMD of gas to
more than 343,600 domestic households, 1,292 commercial
& non-commercial customers and 1,615 industrial customers
in the state.

Source: Socio-Economic Review of Gujarat, 2011-12

MMSCMD: Million Metric Standard Cubic Metre per Day

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Physical Infrastructure – Power and Gas …

(2/2)

→ Gujarat State Petroleum Corporation Ltd (GSPC) has

holdings in over 64 oil and gas fields, 53 of these blocks are GSPL’s Integrated Gas-Grid
located in India and 11 are located in Australia, Egypt, Current Transmission 35 mmscmd*
Indonesia and Yemen.
Commissioned Pipeline 1,874 km

→ GSPC is known for its discovery of the largest gas reserve in Under Construction Pipeline 288 km
India at the Krishna-Godavari Basin.
Source: Gujarat State Petronet Limited (GSPL) Annual Report 2010-
11
→ Gujarat has the most developed gas pipeline network in the MMSCMD: Million Metric Standard Cubic Metre per Day,
country. The gas pipeline network is being operated by *includes 18 mmscmd of re-gassified LNG
Gujarat State Petronet Limited (GSPL), Gujarat Gas LNG: Liquefied Natural Gas
Company Limited (GGCL) and GAIL (India) Limited
(GAIL).

→ GGCL has a total gas pipeline length of about 2,700 km and

services 230,000 customers.

Sources: Socio-Economic Review of Gujarat, 2011-12,

Gujarat Infrastructure Development Board

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Physical Infrastructure – Telecom and IT …

(1/2)

→ As of December 2011, the state had 834,250# broadband

Telecom Infrastructure (January 2012)
subscribers.
Wireless Connections^ 51,494,090
→ According to Telecom Regulatory Authority of India Wire-line Connections^ 1,861,806
(TRAI), Gujarat had 51.4 million^ wireless connections and
Broadband Subscribers# 834,250*
1.8 million^ wire-line subscribers with a tele-density of
88.36^ per cent, as of January 2012. Post Offices 8,982**
Telephone Exchanges 2,983*
→ All district headquarters are provided with back-up support
Tele-Density (in per cent)^ 88.36
of transportable V-SAT terminals.
Sources: Telecom Regulatory Authority of India,
→ The state also has the State Disaster Resource Network Department of Telecommunications, Annual Report 2011-12,
(SDRN), a database of disaster management related Ministry of Communications and Information Technology,
Socio-Economic Review of Gujarat, 2011-12
inventory. ^Including Daman & Diu and Dadar & Nagar Haveli
#Including Dadar & Nagar Haveli
→ The Bhaskaracharya Institute for Space Applications and *As of December 2011
**As of March 2011
Geo-informatics (BISAG) has satellite communication
facilities with a dedicated bandwidth.

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Physical Infrastructure – Telecom and IT …

(2/2)

→ Gujarat State Wide Area Network (GSWAN), is one of the Some of the Major Telecom Operators in Gujarat
largest IP-based WAN connecting over 3,300 government
offices. Vodafone Essar
IDEA Cellular
→ The state has the Sachivalaya Integrated Communication Bharti Airtel
Network (SICN) with over 7,400 voice connections. Bharat Sanchar Nigam Limited (BSNL)
Reliance Communications
Aircel Limited
→ There is facility for online redressing of citizen’s grievances
Tata Teleservices
through the State Wide Attention on Grievances with
Application of Technology (SWAGAT).
Source: Telecom Regulatory Authority of India (TRAI)
→ Integrated Workflow and Document Management System
(IWDMS) streamlines documentation in government offices.

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Development Projects: Urban Infrastructure –

Water
State-wide Water Grid

→ As of February 2012, 2,240 km bulk pipelines and about

120,379 km of distribution pipelines have been laid across
the state.

→ The state has an extensive water grid network. State- wide

water grid covers 75 per cent of the population with
sustainable surface water resources for drinking water.

→ Water conservation schemes include:

→ 147,305 check dams
→ 122,035 bori bandhs (dams made of sand bags)
→ Interlinking of 21 rivers in central and North Gujarat
through ‘Sujalam Sufalam Yojana’.
→ 21,418 deepened ponds. Fresh-Water Availability in Gujarat
Surface Water 38,100 mcm
→ The Gujarat Water Users’ Participatory Irrigation
Management Bill, 2007, authorises farmers to constitute Ground Water 12,000 mcm
Water Users’ Associations (WUA) for the management of Total 50,100 mcm
canals handed over, after rehabilitation by the government.
Source: Vibrant Gujarat 2011, Sector Profile - Water Sector with Focus
on Conservation
MCM: Million Cubic Metres

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Development Projects: Clean Transport Initiative

through CNG and BRTS

→ The state envisages replacement of conventional fuels by Ahmedabad BRTS Map

Compressed Natural Gas (CNG) in all buses and auto
rickshaws.

→ The Bus Rapid Transport System (BRTS) is being

implemented in Ahmedabad jointly by the State
Government, Gujarat Infrastructure Development Board
(GIDB), Ahmedabad Municipal Corporation (AMC) and
Ahmedabad Urban Development Authority (AUDA).

→ Total Bus Rapid Transport System (BRTS) length: 88.5 km

(Phase-I: 58 km + Phase-II: 30.5 km). The project is in
operation.

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Development Projects: Other Initiatives in Urban

Infrastructure

River-Front Development
Development around the rivers Sabarmati and Tapi have been undertaken to revitalise the city and improve existing infrastructure.
It also envisages development of commercial, residential and recreational facilities on the river-front.
The Sabarmati River Front Development Corporation honoured with the Prime Minister’s Award for Excellence in Urban Planning and
Design.
JNNURM
Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 72 projects costing US$ 1.26 billion have been sanctioned
for Gujarat.
The projects have been sanctioned between 2005-06 and 2011-12. The key areas of development are water supply, sewerage, solid-
waste management, storm-water drainage, mass-rapid transport system, construction of flyovers and water treatment.
Gujarat Infrastructure Development Board (GIDB) has been constituted for conceiving infrastructure projects, developing and
preparing them. GIDB also conducts pre-feasibility and feasibility studies for various projects.
Other Reforms
Municipal Accounting
Solid-Waste Management
Energy Efficiency

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 Gujarat
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2012
THE GROWTH ENGINE OF INDIA

Development Projects: Key Public Private

Partnership Projects

Project Cost
Project Name Sector PPP Type (US$ Stage
million)
Hazira LNG Terminal Ports BOOT 806.5 In Operation
Dahej LNG Terminal Ports BOOT 497.2 In Operation
Mundra Port Ports BOOT 467.6 In Operation
Himmatnagar Bypass Roads BOT-Toll 152.2 In Operation
Gandhidham-Palanpur Railway Project Railways BOT 108.7 In Operation
Rajkot Bypass & Gondal Jetpur Roads BOT-Toll 96.4 Construction
Surendranagar-Pipapav Railway Project Railways BOT 88.0 In Operation
Ahmedabad - Mehsana Road Roads BOT-Toll 76.0 In Operation
Dahej-Bharuch Gauge Conversion Railways BOT 42.8 Construction
Vadodara-Halol Toll Road Roads BOT-Toll 38.0 In Operation
Transport Nagar at Ahmedabad Roads BOT 32.9 Construction
Viramgam Mehsana Gauge Conversion Project Railways BOT 22.38 In Operation

Source: www.pppindiadatabase.com
BOOT – Build-Own-Operate-Transfer; BOT – Build-Operate-Transfer

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 Gujarat
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2012
THE GROWTH ENGINE OF INDIA

Development Projects: Special Economic

Zones (SEZs) … (1/3)

→ As of July 2012, Gujarat had 47 formally approved SEZs, 7 SEZs with In-Principle Approvals*
in-principle approvals and 32 notified SEZs.
No. of
Industry Locations
SEZs
→ Gujarat ranks first in terms of total area covered under SEZs
in India. It is also a leading SEZ state with the highest Free Trade and Warehousing
Kandla, Kutch 2
geographical area of 29,424 hectares under SEZ Zones
development. Valsad, Kutch,
Multi Product 3
Bharuch
→ Gujarat has 13 operational SEZs. Some of them are as Plastic & Plastic Products Kutch 1
follows:
→ Kandla SEZ Power Kutch 1
→ Surat SEZ
*As of July 2012
→ Surat Apparel Park Source: sezindia.nic.in

→ It is the first state to formulate a SEZ policy, which includes

flexible labour laws and exit options for investors.

→ SEZs in Gujarat get a 10-year corporate tax holiday on

export profit: 100 per cent for the initial five years and 50
per cent for the next five years.

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 Gujarat
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2012
THE GROWTH ENGINE OF INDIA

Development Projects: Special Economic

Zones (SEZs) … (2/3)

Formally Approved SEZs*

Industry Locations No. of SEZs

IT/ITes and Electonics Gandhinagar, Ahmedabad, Vadodara, Valsad 15
Muti Product/ Services Jamnagar, Dahej, Mundra, Kandla, Gandhinagar, Bharuch, Kutch 9
Pharmaceuticals & Chemical Ahmedabad, Bharuch, Kutch, Panoli 7
Engineering Ahmedabad, Vadodara, Amerli 4
Textile & Apparel Ahmedabad, Anjar 3
Oil and Gas Bharuch 2
Gems & Jewellary Surat 1
Ceramic & Glass Bharuch 1
Biotech Vadodara 1
Handicraft Kutch 1
Non-Conventional Energy Kutch 1
Food Processing Mehsana 1
Free Trade and Warehousing
Kutch 1
Zone (FTWZ)

*As of July 2012

Source: sezindia.nic.in

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 Gujarat
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2012
THE GROWTH ENGINE OF INDIA

Development Projects: Special Economic

Zones (SEZs) … (3/3)

Notified SEZs*

Industry Locations No. of SEZs

IT/ITes and Electronics Ahmedabad, Gandhinagar, Vadodara 10
Pharmaceuticals and Chemicals Ahmedabad, Bharuch 6
Multi-Product Jamnagar, Bharuch, Kutch 5
Multi-Services Gandhinagar 1
Engineering Vadodara, Amerli, Ahmedabad 3
Textile and Apparel Ahmedabad, Kutch 2
Gems and Jewellery Surat 1
Non-Conventional Energy Kutch 1
Biotechnology Vadodara 1
Oil and Gas Bharuch 1
Free Trade and Warehousing Zones
Kutch 1
(FTWZ)

*As of July 2012

Source: sezindia.nic.in

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Gujarat
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2012
THE GROWTH ENGINE OF INDIA

Social Infrastructure – Education … (1/2)

Gujarat’s School Education Statistics (2010-11)

Primary: 40,723
→ Gujarat has a literacy rate of 79.3 per cent according to the Secondary and Higher
Number of Schools Secondary: 9,844
provisional data of Census 2011; the male literacy rate is
87.2 per cent and the female literacy rate is 70.7 per cent. Higher: 1,567

Primary: 31:1
→ In 2010-11, the state has around 40,723 primary schools Secondary and Higher
Pupil-Teacher Ratio
with over 8.14 million students enrolled. Secondary: 41:1
Higher: 28:1
→ ‘Kanya Kelavani’ is a state-wide girl child education Net Enrolment Ratio Primary: 98.64
campaign to increase enrolment ratio and decrease drop-out Primary: 260,237
rates. Secondary and Higher
Number of Teachers Secondary: 74,929
Higher: 24,445
→ ‘Vidhyadeep Yojna’ has been implemented where in case of
an unfortunate death of a child studying in the primary
school, the parents or the guardians of the child are offered Source: Socio-Economic Review of Gujarat, 2011-12
US$ 1,097 as an insurance amount.
Literacy Rates (%)
Literacy Rate 79.3
Male Literacy 87.2
Female Literacy 70.7

Source: Census 2011 (provisional data)

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Gujarat
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2012
THE GROWTH ENGINE OF INDIA

Social Infrastructure – Education … (2/2)

→ ‘Sakshardeep’ is a literacy campaign for adult education.

Premier Educational and Research Institutions in Gujarat
The total of 526,259 persons had taken benefit under
Sakshardeep programme 2007. • Indian Institute of Management, Ahmedabad
• Indian Institute of Technology, Gandhinagar
• Sardar Vallabhbhai National Institute of Technology, Surat
→ Society for Creating of Opportunity through Proficiency in • Institute of Rural Management (IRMA), Anand
English (SCOPE) is an initiative of the government to make • Mudra Institute of Communications, Ahmedabad (MICA)
Gujarati youth proficient in business English. • National Institute of Fashion Technology (NIFT),
Gandhinagar
• National Institute of Design, Ahmedabad
• Centre for Environment Planning and Technology,
Ahmedabad
No. of Seats* in Technical Education - 2011-12 (P) • Central Salt and Marine Chemicals Research Institute,
Engineering 46,581 Bhavnagar

MBA 13,352
Pharmacy 6,427
MCA 5,716
Architecture 780

Source: Socio-Economic Review of Gujarat, 2011-12

*In Degree (full time) Course
MBA: Master of Business Administration
MCA: Master of Computer Application
(P): Provisional

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Gujarat
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2012
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Social Infrastructure – Health … (1/2)

→ Gujarat is in the forefront of establishing and maintaining Health Infrastructure (December 2011)
good health infrastructure.
Primary Health Centres 1,114
Sub-Centres 7,274
→ The state has 1,114 Primary Health Centres (PHCs), 7,274
Sub-centres, 305 Community Health Centres (CHCs), 24 Community Health Centres 305
District Level Hospitals, 26 Sub-district Level Hospitals and
District Level Hospitals 24
6 Class- II Hospitals.
Sub-District Level Hospitals 26
→ During 2010-11, 33.23 million patients were treated Major Hospital with
6
outdoors while 3.62 million patients were treated indoors Educational Institutes
through the government institutions. Class- II Hospitals 6
Government Dental Hospital 2
Health Indicators (2010)
Birth Rate* 21.8 Source: Socio-Economic Review of Gujarat, 2011-12

Death Rate* 6.7

Infant Mortality Rate** 44

Source: Sample Registration System (SRS)

Bulletin 2011 (www.censusindia.gov.in)
*Per thousand persons
**Per thousand live births

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Gujarat
AUGUST
2012
THE GROWTH ENGINE OF INDIA

Social Infrastructure – Health … (2/2)

Key Health Schemes of Gujarat Government

Chiranjeevi Scheme
• Introduced to reduce maternity-related deaths and infant mortality; involves collaborations between government and private
sector specialists to facilitate safe deliveries for the economically weaker sections.
Bal Sakha Yojna
• An initiative under the Chiranjeevi Scheme.
• Provided facilities for proper check up of newborns and infants by paediatricians. The main aim of the scheme is to bring down
the Infant Mortality Rate (IMR) and the Maternal Mortality Rate (MMR).
Centre-Aided Health Insurance Scheme
• The scheme has been launched in Gujarat to cover the families with income-levels in the Below Poverty Line (BPL) category.
• Total insured amount is about US$ 650 per family.

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Gujarat
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2012
THE GROWTH ENGINE OF INDIA

Cultural Infrastructure

→ Various dance forms of the state include Dandiya Raas, Garba, Garbi, Rasaka, Tippani and Padhar.

→ Many fairs and festivals are celebrated in the state such as Bhavnath Mahadev Mela, Dangs Darbar, Vichitra Mela, Dhrang Fair,
Trinetreshwar Mahadev Fair, Vautha Mela, Shamlaji Mela, Kutch Mahotsav, Bhadra Purnima, Kavant Mela, Modhera (dance
festival), Makar Sankranthi, International Kite Festival (Uttarayan) and Navrathri Festival.

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

→ Prominent stadiums in the state include the Sardar Patel Cricket Stadium (Ahmedabad), Moti Bagh Stadium (Vadodara), Indian
Petrochemicals Corporation Ltd (IPCL) Sports Complex (Vadodara) and the Surat Indoor Stadium. Golf courses in the state
include Gaekwad Baroda Golf Club (Vadodara), Gulmohar Greens Golf & Country Club (Ahmedabad), Aalloa Hills Golf Resort
(Ahmedabad), Kensville Golf and Country Club (Ahemdabad), Cambay Golf Club (Gandhinagar), and an integrated Golf Course
in Ganesh Housing Corporation (Ahmedabad).

→ A world-class sporting infrastructure complex is coming up in Ahmedabad at a cost of US$ 65 million. The project is expected to
be ready by 2013. The facility which will incorporate a 21,000 seat stadium, is a collaboration between the Government of Gujarat
and SE TransStadia Private Limited.

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Gujarat
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2012
THE GROWTH ENGINE OF INDIA

Industrial Infrastructure

→ The state’s manufacturing industry is supported by 0.34 Product Clusters

million MSMEs.

→ Gujarat has 83 product clusters. The Cluster Development Agro Processing

Soda ash and salt-based industries,
Scheme has been launched for furthering the growth of cement and steel pipes Mehsana
product clusters. Kachch
KANDLA Gandhinagar
Petroleum and brass
→ Some of the successful clusters include ceramics cluster at Morbi
parts Ahmedabad
Chemicals,
MUNDRA
Morbi, brass-parts cluster at Jamnagar, fish-processing Okha Surendranagar Petrochemicals,
Pharma, Textiles
cluster at Veraval and power-looms cluster at Ahmedabad. Rajkot
Anand
Engineering and Vadodara
ceramics
Jamnagar DAHEJ Ankleshwar
→ Gujarat has 184 industrial estates established by the Gujarat Amreli
Bhavnagar
Industrial Development Corporation (GIDC) for specific Soda ash and salt- Surat
based industries
sectors such as chemicals, electronics, gems, apparels and Sutrapada
HAZIRA Navsari
granite. Kodinar
PIPAVAV
Valsad

→ The State Government has taken care to set up industrial

estates on non-agricultural land after assessment of Source: Industries Commissionerate, Government of Gujarat
industrial viability.

MSME: Micro, Small & Medium Enterprise

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Gujarat
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THE GROWTH ENGINE OF INDIA

Contents
 Gujarat – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Gujarat

 State Acts & Policies

For updated information, please visit www.ibef.org

40
Gujarat
AUGUST
2012
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Key Industries … (1/2)

→ Gujarat contributes 16.91 per cent to the industrial output of

the country. Key Industries in Gujarat

• Agro and Food Processing

→ There are 12 major industry groups that together account for • Dairy
around 86 per cent of total factories, 96 per cent of total • Chemicals and Petrochemicals
fixed capital investment, 94 per cent of the value of output • Textiles and Apparels
and 95 per cent of value-addition in the state’s industrial • Engineering and Auto
products. • Gems and Jewellery
• Oil and Gas
→ Gujarat is a leader in several industrial sectors such as • Pharmaceuticals and Biotechnology
chemicals, petrochemicals, dairy, drugs and pharmaceuticals, • IT
cement and ceramics, gems and jewellery, textiles and • Minerals
engineering. • Ports
• Power
→ The industrial sector comprises of over 800 large industries • Tourism
and over 345,000 micro, small and medium industries.

Source: Government of Gujarat website

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Gujarat
AUGUST
2012
THE GROWTH ENGINE OF INDIA

Key Industries … (2/2) → Home to India’s first Liquefied Natural Gas (LNG) port
terminal at Hazira.

Share of Industry Sectors in Gujarat

→ Petroleum accounts for the highest industrial production in
Gujarat with a 34 per cent share. It is followed by chemicals
and pharmaceuticals with 27 per cent share.
Chemicals and Pharma

2% 6% Petroleum
→ Gujarat is: 6%
27% Engineering Industries
→ The world’s largest producer of processed diamonds and 7%
wall clocks. Food Processing

9% Textiles & Apparel

→ The world’s largest gas-based, single-location sponge Metallurgical
iron plant. 9% Industries

Mineral Based
34% Industries
→ The world’s largest producer of castor and cumin.
Others

→ The world’s third largest producer of denim.

Source: Industries Commissionerate, Gujarat Government
→ Asia’s largest grassroots petroleum refinery at Jamnagar.

→ India’s largest producer of cotton.

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 Gujarat
AUGUST
2012
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Key Industries – Agro and Food Processing …

(1/3)

→ The agro sector including animal husbandry, contributed Some of the Key Players
17.1 per cent to Gujarat’s GSDP in 2010-11.
• Amul
• Parle Products Pvt Ltd
→ Cotton, Groundnut, Bajra, Paddy, Maize, Jowar, Sesamum,
• Vadilal
Castor, and Tur (Pigeon pea) along with fodder and
• Rasna
vegetables are the major kharif crops of the state. Normal
area under kharif cultivation is 8.6 million hectares.

→ There were 205 Agriculture Produce Market Committees

(APMCs), 199 main yards and 201 sub market yards
operational in the state as of March 2011.

→ Gujarat Agro Industries Corporation (GAIC) promotes

agricultural activities at the ground-level and aids the
development of agro industries in the state.

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 Gujarat
AUGUST
2012
THE GROWTH ENGINE OF INDIA

Key Industries – Agro and Food Processing –

the Dairy Industry … (2/3)

→ Gujarat’s dairy sector consists of 17 district milk producers’ Key Districts in the Dairy Sector
unions.

→ There are around 14,598 milk co-operative societies in the

state. Gandhinagar

→ The total milk production in Gujarat was 9.3 million tonnes Ahmedabad
in 2010-11. Anand

→ The National Dairy Development Board in Anand is

involved in promoting, financing and supporting milk-
distribution organisations across India.

→ GCMMF, a cooperative dairy giant, sells Amul and Sagar

brands of dairy products through 1 million retailers and
5,000 distributors. Source: “Estimates of Milk Production”, National
Dairy Development Board

→ GCMMF became the first billion - dollar cooperative in

2006-07 and registered a turnover of US$ 1.1 billion.
GCMMF recorded a turnover of US$ 2.5 billion in 2011-12.

GCMMF: Gujarat Co-operative Milk Marketing Federation

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 Gujarat
AUGUST
2012
THE GROWTH ENGINE OF INDIA

Key Industries – Agro and Food Processing …

(3/3)

→ The Anand Milk Union Limited (AMUL) was established in 1946 in Anand, Gujarat. Amul had
Amul revenues of US 2.5 billion during 2011-12.

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

→ Daily average collection of 10.6 million litres of milk from 16,117 village societies in 2011-12.

Parle Products Pvt Ltd → India's largest manufacturer of biscuits and confectionery for almost 80 years.

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

→ The company has a factory at Bhuj in Gujarat.

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

Vadilal
→ Exports processed products.

→ Revenue of US$ 58.3 million in 2011-12. One manufacturing plant at Pundhra in district Gandhinagar.

→ Started in 1984. Had 90 per cent market-share in Indian soft-drink concentrate market in 2011.
Rasna
→ Wide range of products in processed-foods category such as fruit jams, energy sports drink powder, fruit
cordial, rose syrup and iced-tea.

→ Largest capacity in Asia to make powder concentrate with seven facilities spread across India. The company
is based in Ahmedabad.

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 Gujarat
AUGUST
2012
THE GROWTH ENGINE OF INDIA

Key Industries – Textiles and Apparel …

(1/2)

→ Gujarat is the largest producer (33 per cent) and exporter (60 Area Textile Clusters
per cent) of cotton in the country.
Cotton and Blended Fabric, Denim, Made -
Ahmedabad ups, Ladies Dresses, Textile Machinery and
→ As per Government of Gujarat’s survey report, technical Spare Parts.
textiles is a key emerging area with over 860 units in Gujarat.
Art-silk Fabric, Synthetic Textiles, Jari
Surat Manufacturing, Embroidery, Textile
→ Textile contributes 6 per cent of the total industrial Machinery and Spare Parts.
production in the state (organised sector).
Modern Power Looms, Synthetic Suiting
Umargam
and Shirting.
→ Over 40 per cent of the country’s art-silk fabric is produced
in Surat. Gujarat is the largest producer of denim in India (65 Jetpur Hand Printing and Processing Units.
to 70 per cent) and the third-largest in the world. Manavadar Cotton Ginning
Kutch Textile Handicrafts
→ About 24 per cent to 28 per cent of fixed investment,
production value and employment of Small Scale Industries
(SSI) is from textiles sector. Some of the Key Players

→ In 2008-09, the state contributed 33 per cent of mill-made • Arvind Ltd

fabric and 25 per cent power-loom fabric to the total fabric • Ashima Group
produced in the country. • Digjam Ltd
• Raymond Ltd

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 Gujarat
AUGUST
2012
THE GROWTH ENGINE OF INDIA

Key Industries – Textiles and Apparel …

(2/2)

→ One of the top-three producers of denim in the world and largest producer in Asia.
Arvind Ltd → Product line includes fabrics (denims, shirtings, khakis and knitwear) and garments.

→ Asia’s first fabric-manufacturing unit to receive an ISO-14001certification.

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

→ 100 per cent cotton-fabric manufacturers and a vertically-integrated group with a turnover of over US$ 100
Ashima Group million per annum.

→ Registered office at Ahmedabad.

→ Exports fabric to over 45 countries, markets to over 150 Indian garment exporters.
→ Part of the S.K. Birla Group, the company was established in Jamnagar, Gujarat in 1949.
Digjam Ltd
→ The company manufactures fabrics for suiting and casual wear.

→ It has restructured its business portfolios to focus on textile manufacturing and marketing of fabrics and
ready-to-wear clothing under its own brands.
→ With over 60 per cent market share in India, Raymond is one of the largest integrated manufacturers of
Raymond Ltd worsted fabric in the world. The group is into textiles, engineering and aviation.

→ Raymond Apparel Limited is a 100 per cent subsidiary of Raymond Limited.

→ The plant at Vapi in Gujarat has production capacity of 14 million metres per annum.

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 Gujarat
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2012
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Key Industries – Chemicals and

Petrochemicals … (1/2)

→ Gujarat contributed about 51 per cent to the national

Some of the Key Players
production of chemicals in 2010-11.
• Asian Paints Ltd
→ It is the highest contributor to the total national production • Tata Chemicals Ltd
of petrochemical products. • Gujarat State Fertilisers and Chemicals Ltd
• Excel Industries Ltd
→ Gujarat’s contribution in the national production of the
following is:

→ Soda ash: About 98 per cent

→ Salt: 78 per cent
→ Petrochemical: 62 per cent
→ Onshore Crude oil: 53 per cent

→ The State Government is developing the Petroleum,

Chemicals and Petrochemicals Integrated Region (PCPIR)
at Dahej.

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 Gujarat
AUGUST
2012
THE GROWTH ENGINE OF INDIA

Key Industries – Chemicals and

Petrochemicals … (2/2)

→ It is India’s largest paint company and ranks among the top ten decorative-coatings companies in the world.
Asian Paints Ltd
→ Asian Paints along with its subsidiaries has operations in 17 countries across the world and 24 paint
manufacturing facilities.

→ Manufacturing facility at Ankleshwar in Gujarat.

→ TCL is a global company with interests in chemicals, crop nutrition and consumer products. It is the world's
Tata Chemicals Ltd second largest producer of soda-ash.
(TCL)
→ Established in 1939 at Mithapur in Gujarat, TCL is a part of the Tata group. The plant has an installed
capacity of 875,000 tonnes per annum; about 34 per cent of the country's capacity. The plant is one of the
largest producers of synthetic soda ash in the world and has a five-star rating from the British Safety
Council.
Gujarat State Fertilisers → Established in 1962. Fertiliser plant at Fertiliser Nagar (Vadodara), fibre unit at Kosamba, Di-Ammonia
and Chemicals Ltd Phosphate (DAP) fertiliser unit at Sikka and polymer unit at Nandesari.

. → Had revenue of US$ 1.1 billion in 2011-12.

→ Established in 1941, the company manufactures agro-chemicals, water treatment chemicals, polymer
Excel Industries Ltd additives and few other specialty chemicals.

→ Plants in Gujarat at Piplaj and Ahmedabad.

→ Turnover of US$ 62.8 million in 2011-12.

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Gujarat
AUGUST
2012
THE GROWTH ENGINE OF INDIA

Key Industries – Engineering and

Automotive … (1/4)

→ The state’s engineering and automotive sectors contribute 15 Share of Gujarat in National Engineering Goods Production
per cent to state’s total industrial production and over 9 per
10.40% 10.40% 10.00%
cent to the national engineering output.
7.30%
3.70%
→ The sector comprises more than 300 units in large sector and
over 75,000 units in Small and Medium Enterprises (SME)
sector (excluding repair and services) operating in the state.

→ The state has over 30 engineering product clusters.

→ The state government has set up an international level

Automotive Skill Development Institute on PPP mode with
PSA Peugeot, to generate skilled manpower for the
automotive sector.
Source: Vibrant Gujarat 2011 - Engineering and Auto Industries
Sector Profile, www.vibrantgujarat.com

PPP: Public Private Partnership

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Gujarat
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2012
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Key Industries – Engineering and

Automotive … (2/4)

→ Small-scale industry is a significant contributor to the

national production of brass parts, foundry, forging and Some of the Key Players
machine tools, oil engines and electric motors, submersible
pumps and industrial valves and bearings. • ABB
• Larsen & Toubro (L&T)
• General Motors
→ The brass parts cluster at Jamnagar has over 5,000 small • Panasonic
units and meets almost the entire requirement for brass parts
in India.

→ General Motors has set up its automotive manufacturing

facilities in Gujarat, providing a boost to its auto ancillary
industry.

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Gujarat
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2012
THE GROWTH ENGINE OF INDIA

Key Industries – Engineering and

Automotive … (3/4)

Key Engineering Clusters

Foundry and Forgings

Steel Pipes and Tubes
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

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Gujarat
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Key Industries – Engineering and

Automotive … (4/4)

→ Incorporated in 1949. The company manufactures cables and cable accessories, control systems, power
ABB products, semiconductors, reactors, drives, generator circuit breakers and insulation components.

→ Manufacturing facility, training and operations centre located in Gujarat at Vadodara. The ABB Group had
revenue of US$ 37.9 billion in the year 2011.

→ L&T is a technology, IT, engineering, construction and manufacturing company.

Larsen & Toubro
(L&T)
→ The Engineering Construction and Contracts (ECC) division of L&T is India’s largest construction
organisation in the country. Has a regional office at Ahmedabad.

→ The company has two manufactruing facilities at Hazira and Vadodara in Gujarat. L&T’s Hazira works is
recognised as one of the most advanced heavy fabrication facilities matching global standards.

→ Founded in 1908, GM is among the world’s largest automobile makers. Headquartered in Detroit (USA),
GM manufactures cars and trucks in 34 countries and has sales in 140 countries. GM has been the global
General Motors automotive sales leader since 1931 and employs about 202,000 people globally.

→ General Motors India, incorporated in 1996, became a fully-owned subsidiary of GM in 1999. Has a 45,000
sq m plant at Halol (Panchmahal) in Gujarat and produces brands such as the Chevrolet (Optra and Tavera)
and Opel (Corsa and Sail).
→ Panasonic (formerly known as Matsushita) is the largest Japanese electronics producer. Products include
Panasonic audiovisual and information/ communication equipment and home appliances etc.

→ Established a business unit in Gujarat in 1972 through a joint venture with the Indian company, Lakhanpal.
Manufacturing unit located at Vadodara where it manufactures dry cell batteries.

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 Gujarat
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Key Industries – 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.

→ 90 per cent of total diamonds in Gujarat are processed by about 10,000 diamond units located in and around 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.

→ It is also 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.

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Key Industries – Oil and Gas … (1/2)

→ Gujarat ranks first in the production of crude oil (onshore) in Key Players
India. In 2010-11, the state accounted for 35.9 per cent of the
total crude oil (onshore) production in the country. • Cairn India
• IOCL (Indian Oil Corporation Limited)
→ In 2010-11, the state accounted for 26.3 per cent of the total • ONGC (Oil and Natural Gas Corporation Limited)
natural gas (onshore) production in the country. The state has • Shell
the highest number of oil and gas fields, both onshore and
offshore, in India (27.69 per cent).
Key Locations Oil and Gas Companies
→ Nearly 39.3 per cent of India’s installed refining capacity is
in the state of Gujarat. Reliance Industries Refinery:
Largest grassroot refinery in the
Jamnagar World;
→ Oil and gas reserves are located at Ankleshwar, Mehsana, Essar Refinery
Tapti High, Hazira, Bharuch, Gandhar, Dahej, Jambusar,
Palej and Kalol. Isolated gas fields are located around Petronet LNG’s Re-gasification
Dahej Terminal
Ahmedabad.
Hazira Shell and Total’s LNG Terminal
→ Gujarat has a 2,200 km state-wide integrated gas grid. It also Vadodara Indian Oil Corporation’s Refinery
has two LNG terminals at Hazira and Dahej. Two more
terminals are proposed to be set up at Pipavav and Mundra. Gandhar ONGC’s Gas Processing Complex

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Key Industries – Oil and Gas … (2/2)

Indian Oil Corp Ltd → IOCL is India's largest integrated oil refining and marketing company by sales, with a turnover of US$ 84.9
(IOCL) billion in 2011-12. It is the 18th largest petroleum company in the world.

→ It owns and operates 10 of India’s 20 refineries; the company had a refining capacity of 65.7 MMTPA (1.3
million barrels per day). The refinery at Koyali is IOCL’s largest with a capacity of 13.7 Million Metric
Tonnes Per Annum (MMTPA).
→ The company operates the largest producing oil fields in the Indian private sector. Cairn India holds
Cairn India material exploration and production positions in 9 blocks across India along with new exploration rights
elsewhere in India and one in Sri Lanka. Cairn has a 40 per cent share in the Cambay oil field; ONGC holds
50 per cent and Tata Petrodyne 10 per cent.

→ It is building a 670 km long, heated and insulated crude oil pipeline from the Mangala Processing Terminal
in Rajasthan to the Gujarat coast. When complete, the pipeline will give access to more than 75 per cent of
India’s refining capacity. The first phase was completed in May 2010.
→ ONGC is India’s leading exploration and production company for oil and gas. It has 240 onshore
ONGC production installations, 77 drilling rigs and 26,598 km pipeline network.

→ ONGC has a plant at Hazira; assets in Mehsana, Ahmedabad and Ankleshwar.

→ The company has the Institute of Reservoir Studies (IRS) at Ahmedabad and regional office at Baroda.

→ Shell is among the global leaders in oil, gas and petrochemicals sector, with interests in bio-fuels, wind,
Shell solar power and hydrogen. The company operates in over 80 countries, employing 90,000 people
worldwide.

→ It is a large and diversified international investor in India’s energy sector. The company is the only global
major to operate petro-fuel retail outlets in India. The Hazira LNG Terminal and port project is Shell’s
largest venture in India.

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Key Industries – Pharmaceuticals and

Biotechnology … (1/3)

→ Gujarat contributed 30 per cent to India’s pharma sector

turnover and around 28 per cent of India’s pharma exports in
2010-11. Ahmedabad
Cluster
→ The state accounts for 80 per cent of intravenous sets Gandhinagar
manufactured in the country. Surendranagar Ahmedabad Baroda
Cluster
→ It has the largest number of clinical research organisations in
Rajkot
India and over 100 companies with WHO-compliant
manufacturing units. Ankleshwar
Junagadh Cluster
Surat
→ The state accounts for 40 per cent of pharma machinery Bharuch and
Vapi/Valsad
production.
Cluster

→ A Pharma Special Economic Zone (PhaEZ) is being

established by Cadilla Pharma near Ahmedabad with about
31 units and spread across in 500 acres. Manufacturing
Academic Institution
→ The landscape of Gujarat biotechnology industry consist of R&D Organisation
more than 50 biotechnology companies and 66 support
organisations.

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Key Industries – Pharmaceuticals and

Biotechnology … (2/3)

Biotech Zones Some of the Key Players

Location
(Proposed)
• Sun Pharma
Ahmedabad-Surendranagar Biopharma Zone
• Bayer Cropscience
Jamnagar-Dwarka-Porbandhar Marine Biotech Zone • Quintles
Food and Food Processing • Zydus Cadilla
Vadodara-Anand-Nadiad
for Animal Biotechnology
Biochemical Engineering
Vapi-Surat-Bharuch-Ankleshwar for Industrial
Biotechnology
Junagadh-Bhavnagar-Banaskantha-
Agri Biotechnology
Mehsana

Location Biotech Parks (Proposed)

Vadodara Industrial Park
Anand Food Biotechnology Park
Jamnagar/Bhavnagar Marine Biotechnology Park
Gandhinagar/Mehsana Agri Biotechnology Park

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Key Industries – Pharmaceuticals and

Biotechnology … (3/3)
→ Sun Pharma was established in 1983. It manufactures Active Pharmaceutical Ingredients (APIs) and
Sun Pharma specialty pharmaceuticals. The company has 20 manufacturing plants across the world and reported
revenues of US$ 1.6 billion during 2011-12.

→ Sun Pharmaceutical Advanced Research Centre (SPAC) is situated in Vadodara (Baroda). Manufacturing
plants in Gujarat are located at Vapi, Halol, Ankleshwar, Ahmednagar and Vadodara.

→ Bayer is a global enterprise with core competencies in the fields of healthcare, nutrition and high-tech
Bayer Cropscience materials. In India, Bayer operates six companies including Bayer Cropscience, which offers a range of
products and it has service back-up for modern agriculture and non-agricultural applications. The company
has three business groups: crop protection, environmental science and bio-science.

→ It has two factories in Gujarat, at Ankleshwar and Himatnagar.

→ Quintiles is a fully integrated biotech and pharmaceutical services provider offering clinical, commercial,
consulting and capital solutions. Key services in India include biostatistics, data management, clinical
Quintiles monitoring, central laboratory services, electrocardiogram monitoring services, project management and
regulatory services.

→ Quintiles India, the Indian subsidiary, has five offices in India. The research laboratory of the company is
located at Ahmedabad.
→ Zydus Cadila is a leading pharmaceuticals company with sales of US$ 1.0 billion in 2011-12. Product line
includes formulations, APIs, diagnostics, health-foods and diet-foods, skin care and animal healthcare
Zydus Cadila products. The company maintained its strong position in the participated market segments of
cardiovasculars, gastrointestinals, women’s healthcare and respiratory.

→ Production units are located in Ahmedabad, Vadodara and Ankleshwar for manufacturing tablets,
injectibles, capsules, liquids and APIs.

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Key Industries – Shipbuilding Industry

Shipping Industry
→ There are several shipyards present in Gujarat such as ABG
Shipyard, Alcock Ashdown and the Vipul Shipyard.

→ The infrastructure available for development of the

shipbuilding industry includes:

Mundra
→ Availability of raw materials such as ship building
plates and engines
Okha
→ Stillness of water and deep draft
Bhavnagar
→ Proximity to ancillary industries
→ Sufficient anchorage space Dahej

→ Gujarat has nine shipbuilding yards in operation, three under Pipavav

the process of approval and Gujarat Maritime Board (GMB) Jafrabad
has envisaged for thirteen more notable shipbuilding
projects.
Shipbuilding
Marine Shipbuilding Parks (Probable Stretches)
→ GMB is promoting the strategy of cluster form of Shipyards
development known as Marine Shipbuilding Parks (MSP). Ship Recycling
Bunkering Facility

Source: Gujarat Maritime Board

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Key Industries – Tourism

→ The state has a rich architectural and cultural heritage owing to its historical parentage of the Indus Valley Civilisation sites such
as Lothal and Harappa. There are many forests and natural ecosystems, heritage monuments, beaches and coastal sites, gardens,
lakes, archaeological and architectural sites in Gujarat.

→ Eight tourism hubs have been created for the convenience of tourists visiting Gujarat. These are in Ahmedabad-metro,
Ahmedabad (North Gujarat); Surat (South Gujarat), Vadodara (Central Gujarat), Rajkot, Junagadh and Jamnagar (Saurashtra) and
Bhuj (Kutch).

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

→ Gujarat received “Best Tourism Pavilion” award in 2008 at Asia’s biggest Tourism and Travel exhibition - “SATTE–2008” held at
New Delhi.

→ In 2011-12, around 22.3 million tourists visited the state.

Source: Gujarat Tourism, Government of Gujarat

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Contents
 Gujarat – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Gujarat

 State Acts & Policies

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A Roadmap for Doing Business in Gujarat

Identification of location within Gujarat for setting the industrial unit

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

Registration of Business Organization

Land Obtain EC from MoEF, GoI for Obtain CTE

Category A projects. SEAC, F&ED, from GPCB (in
GoG for Category B projects case land is
(listed in EIA notification declared as
Apply to Gujarat Industrial Apply to the District Private Land Apply to the SEZ or Apply to Forest & Environment Dt 14.09.2006) dark zone)
Development Corporation Collectorate for (Permissions from Industrial Park Department for Forest Land
Government Land district collectorate ) developer for land
for Industrial Estates

In case land falls under Urban development authority limits, Obtain permission under FCA & WPA from competent Authorities
apply to UDA for Zoning / Zone Change Certificate and apply to Obtain CRZ
District Collectorate for NA permission clearances (if
applicable) from
F & ED

Apply for Water to DEE in case of GWIL SSNNL : Narmada Irrigation Department: Local Governing CGWA : Ground
Body : Surface Water Desalination Plants
relevant Authorities GIDC estates Canal Other Canals Water

MGVCL , Vadodara (For Central PGVCL , Rajkot DGVCL , Surat UGVCL , Mehsana
Gujarat) (For Saurashtra & Kutch) (For South Gujarat) (For North Gujarat)
Apply for Power to the relevant Zonal Offices

Apply for Gas to the relevant companies GSPC Gas Company Ltd Gujarat Gas Company Ltd Gail (India) Ltd Adani Energy Ltd Sabarmati Gas Ltd Charotar Gas Sahkari Mandali Ltd

Construction Permission from Urban Development Authority

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

Source: Doing Business in Gujarat 2008, Government of Gujarat

Apply for Consolidated Consent and Authorization from GPCB

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Key Investment Promotion Offices … (1/4)

Agency Description

• Promotes investment in industrial and infrastructure projects, acts as a single-point

contact.
• Identifies new investment opportunities and prepares project profiles.
Industrial Extension Bureau (iNDEXTb)
• Prepares and publishes status reports and status papers on different industry groups.

• Coordinates with various government departments, chambers of commerce and

industry associations at the state and central levels.

• Premier promotional agency, for providing all basic infrastructure to the industries
in Gujarat.
• Develops industrial estates at strategic locations all over the state.
Gujarat Industrial Development
Corporation (GIDC) • Also offers basic amenities in industrial estates.

• Develops functional estates to fulfill specific needs of certain industries.

• Checks environmental degradation by resorting to specific measures.

• Promotes agricultural activities at the ground level and helps in development of

Gujarat Agro Industries Corporation agro industries.
(GAIC) • Accelerates demand-based production of agro products to develop agro industries
in the new global agricultural environment.

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Key Investment Promotion Offices … (2/4)

Agency Description
• Encourages the growth of industries in the SSI sector.
Gujarat Small Industries Corporation • Acts as an authorised distributor and stockist of steel producers.
(GSIC)
• Assists SSI units by providing imported/indigenous raw materials.

• Attracts private sector investment in infrastructure development projects

• Frames policies for involvement of other public sector infrastructure development

Gujarat Infrastructure Development Board
agencies.
(GIDB)
• Liaison with banks and other financial institutions interested in financing
infrastructure projects.

• Finances industrial units in Gujarat and the Union Territories of Dadra and Nagar
Haveli.
Gujarat State Financial Corporation
• Provides financial assistance to new and existing SSI units.
(GSFC)
• Offers finance to SSI units for obtaining ISO-9000 certification, marketing and
sales promotion activities.

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Key Investment Promotion Offices … (3/4)

Agency Description
• The commissionerate functions under the Industries, Mines and Tourism
Department of Government of Gujarat, and implements industrial policies of the
state and central governments.
Industries Commissionerate
• Promotes development, monitors and controls functions for planned industrial
developments in tiny, small, medium and large sectors, through a network of
district industry centres, attached offices and industrial promotion corporations.

• Acts as a nodal agency for augmenting power generating capacity through private
sector participation.
Gujarat Power Corporation Limited • Identifies power projects based on different fuels and prepares techno-economic
(GPCL) feasibility reports.
• Obtains approvals from relevant authorities to prepare Power System Master Plan
for the state.

• Contributes to the development of vital port infrastructure.

• Synchronises with hinterland development.

Gujarat Maritime Board (GMB) • Identifies green field ports for development.

• Specifies missing links in roads and railways and suggests upgrading existing links
to facilitate easier approach to port locations.

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Key Investment Promotion Offices … (4/4)

Agency Description
• Finances medium and large scale industries.

Gujarat Industrial Investment Corporation • Arranges finance for large projects available in consortium with other central and
Limited (GIIC) state-level financial institutions and banks.
• Provides Infrastructure financing and offers a variety of financial packages.

• Identifies tourism potential in the state.

• Undertakes the task of developing tourism and related commercial activities.

Tourism Corporation of Gujarat Limited
(TCGL) • Maintains and upgrades tourism infrastructure and hotel projects with the help of
privatised professional services.
• Encourages investment for development of tourism-related infrastructure.

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Contact List … (1/2)

Agency Contact Information

Block No 18, 2nd Floor
Udyog Bhavan, Sector-11,
Gandhinagar-382 017
Industrial Extension Bureau Phone: 91-79-23250492/93
Fax: 91-79-23250490
E-mail: [email protected]

Block No 4, 2nd Floor

Udyog Bhavan, Sector-11
Gandhinagar - 382 017
Gujarat Industrial Development Corporation (GIDC) Phone: 91-79-2325 0636, 2325 0637
Fax: 91-79-2325 0705
E-mail: [email protected]

Khet Udyog Bhavan,

Opp. Old Gujarat High Court,
Navrangpura, Ahmedabad-380 014
Gujarat Agro Industries Corporation (GAIC) Phone: 91-79-2754 4741/42/43
Fax: 91-79-2754 2518
Website: www.gujagro.org

Block Nos.6 & 8,

Udyog Bhavan, 6th Floor,
Gujarat Small Industries Corporation (GSIC) Sector-11, Gandhinagar - 382 011
Phone: 91-79-3223 653, 3232 280
Fax: 91-79-3232 166

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Contact List … (2/2)

Agency Contact Information

Block No 11 & 12, 6th Floor,
Udyog Bhawan, Sector-11,
Gujarat Industrial Investment Corporation Limited (GIIC) Gandhinagar-382 011
Phone: 91-79-2324 9641-53
Fax: 91-79-2323 6230

Block No 10,
Udyog Bhavan, Sector-11
Gandhinagar - 382 011
Gujarat State Financial Corporation (GSFC) Phone : 91-79-23256793
Fax : 91-79-2325 2204
E-mail: [email protected]

Block No 18, 8th Floor ,

Sector-11, Udyog Bhavan
Gandhinagar - 382 017
Gujarat Infrastructure Development Board (GIDB) Phone: 91-79-23232701/ 4
Fax: 91-79-23222481
E-mail: [email protected]

Block No 1, 2nd Floor, Udyog Bhavan

Gandhinagar - 382 010
Industries Commissionerate Phone : 91-79-23252683, 23252617
E-mail: [email protected]

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Gujarat
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Key Approvals Required … (1/4)

Approvals and Clearances Required Departments

• SSI Registration – District Industries Centre (DIC)

• Industrial Entrepreneur’s Memorandum (IEM) – DIC/ Industries Commissionerate, Government
of Gujarat
• Filing Industrial Entrepreneur’s Memorandum (IEM) and Letter of Intent (LoI) – Secretariat for
Industrial Assistance, Ministry of Commerce and Industry, Government of India
Approvals/Registration/Filing
Information for Setting up Project • Letter of Permission (LoP) - The Development Commissioner, Kandla Special Economic Zone,
Ministry of Commerce and Industry, Government of India, Kandla (Dist. Kutch), Gujarat
• For automatic approvals - 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.

• Registrar of Partnership Firms, Government of Gujarat for partnership firms and Registrar of
Registration of Business Organisation Companies, Government of India (office located in Ahmedabad) for corporations.
Authority for lands:
• In GIDC estate - Concerned office of GIDC
• Government land - Concerned district collector or collector/district development officer
Acquisition of Land
• Private land (purchase of agricultural land for non-agricultural use) – Private land owner
• Forest land - Ministry of Forest & Environment, State Wild Life Board, National Wild Life
Board and Supreme Court (for land reserved for wildlife sanctuaries or national parks).

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Key Approvals Required … (2/4)

List of Approvals and Clearances Required Respective Departments of States

No Objection Certificate (NOC) to be obtained from Gujarat Pollution Control Board (GPCB)
Clearance from Pollution Control Board Environmental clearance:- Ministry of Environment and Forest and Government of Gujarat
(State Impact Assessment Committee).
• GIDC estates - Zonal office
Arrangement of Power • Locations other than GIDC estates - Zonal distribution company
• Captive power - Gujarat Energy Transmission Corporation Limited (GETCO)
Arrangement of Gas Gujarat State Petroleum Corporation (GSPC) or private distributor.

Authority depends on the location of unit:

Proximity to Narmada Canal – Sardar 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 water – Local governing bodies (municipal corporations)
Arrangement of Water 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, Gujarat Water Resources
Development Corporation (GWRDC)
Water supply for industrial purposes within GIDC estate–Deputy Executive Engineer of the
concerned estate.

Authority depends on location of the unit, if the unit is located:

• In GIDC estates – GIDC executive engineer in the region.
Approval of Building Plans
• Inside and 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.

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Key Approvals Required … (3/4)

Approvals and Clearances Required Departments

Approval from Labour Department Labour Commissioner
Approval from Commercial Tax Value-Added Tax (VAT) registration and Central Sales Tax (CST) registration: Respective area
Department officer in whose jurisdiction the chief place of business falls.

Mining Lease Approval Department of Geology and Mining

Boiler Registration Chief 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 per cent Export

Oriented Units Located Outside Special Collector of Customs & Central Excise, Government of India
Economic Zones
Quality Certification Bureau of Indian Standards (office located in Gujarat)

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Key Approvals Required … (4/4)

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 500 m of the Coastline Gujarat Maritime Board

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

Source: Doing Business in Gujarat 2008

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Cost of Doing Business in Gujarat

Cost Parameter Cost Estimates Source

Cost of Land (per sq ft) US$ 10 to US$ 150 Industry Sources
Hotel Room Cost (per night) US$ 40 to US$ 180 Indian Hotel Survey

Office Space (rent per sq ft per annum) US$ 12 to US$ 36 Industry Sources
Residential Space (rent per sq ft per
US$ 2 to US$ 6.5 Industry Sources
annum)
Power Cost (per kWh) Energy Charges: US$ 0.07 to US$ 0.1 Gujarat Electricity Regulatory Commission
Ministry of Labour and Employment,
Labour Cost (minimum wage per day) US$ 2.2 to US$ 4.1
Government of India

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Contents
 Gujarat – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Gujarat

 State Acts & Policies

For updated information, please visit www.ibef.org

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State Acts & Policies … (1/3)

Shipbuilding Policy 2010

• To explore potential as well as resources available on the Gujarat coast for shipbuilding.
Objectives • To enhance industrial growth of the state by encouraging establishment of downstream ancillary
industries.

Read more

Gujarat Industrial Policy 2009

Objective • To facilitate investments in the state, generate employment and adhere to high quality standards.

Read more

Power Generation Policy 2009

• To develop the state of Gujarat as a power-generation hub.
Objectives • To have adequate availability of power in the state for agriculture, households, industry etc.

Read more

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State Acts & Policies … (2/3)

Solar Power Policy 2009

• To promote power generation of green and clean power in the state using solar energy.
Objectives • To promote employment generation and skill enhancement of local youth.

Read more

Gujarat State Mineral Policy 2003

• To explore opportunities in the sector of mineral resources of the state.
Objectives • To enhance efficiency by adopting e-governance.
Read more

SEZ Policy of Gujarat,

2002
• To encourage investment and export oriented units in the state through specified facilities and
Objective concessions.
Read more

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State Acts & Policies … (3/3)

Agro Industrial Policy, 2000

• To make Gujarat the destination of choice for investors and processors, both global and
Objective domestic.
Read more

Gujarat Port Policy

• To promote Gujarat’s share in ports.
Objectives • To attract private sector investment in the existing minor and intermediate ports.
Read more

Gujarat Road Policy

• To facilitate investments in the road sector.
Objectives • To induct more scientific principles of resource allocation for maintenance and new construction
programmes. Read more

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Annexure

Exchange Rates

Year INR equivalent of one US$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

Average for the year

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