June 2010 | iNDEXTb

Gujarat The Global Business Hub

Contents

FROM THE DESK 1 Message from the Minister of

State - Industries, Government of Gujarat

GUJARAT UPDATE 2

Gujarat News

INTERNATIONAL COLLABORATION 11

International Delegations to Gujarat

FOCAL POINT 13 Gujarat to be power mall of India

by the year 2020 EVENT CALENDAR 16

Highlights of the Events in May and Upcoming Events

From the Desk “What is the best destination for my investments and business” is one of the most crucial questions facing business leaders – the decision makes or mars the growth of their business enterprise. What is more important is the fact that with changing market dynamics every business has to look for a destination that offers best advantages in terms of cost, infrastructure, conducive business friendly policies and overall positive business climate. India’s advantages and its emergence as a global manufacturing hub and preferred investment destination is a reality based on strong fundamentals of the Indian economy and excellent future prospects. So when the whole world is looking at India as its next investment destination, the next major challenge is to find out which is the best investment destination in India, and the global business leaders have found their answer in Gujarat. The most attractive investment destination in the country and the growth engine of India! The investment climate and industry friendly policies of Gujarat got re-affirmed when the Who’s Who of the Indian business community joined the global investors in January 2009 during Vibrant Gujarat Global Investors’ Summit at Ahmedabad and signed Memorandum of Understanding expressing their desire to invest over Rs. 12,00,000 crore (240 billion USD) through over 8,500 projects. Major rounds of green revolutions for improving productivity in the agriculture sector made Gujarati farmers and villages prosperous. Co-operatives and white revolution empowered Gujarati women and provided a strong backbone to rural Gujarat. Inter-linking of rivers took waters of Narmada to every nook and corner of Gujarat, making villages self sufficient in their drinking water needs. Impeccable infrastructure and proactive industrial policies have made Gujarat a backbone of industrial growth of the country. Through its rich culture, deep rooted heritage and colorful vibrancy, Gujarat has achieved a status where everyone looks at the State with respect. This year Gujarat is celebrating its Golden Jubilee – to celebrate its achievements and renew its promise to achieve a grand vision – a vision of an even more prosperous Gujarat where every Gujarati is healthy and educated, a vision of a clean, green and modern Gujarat, a vision of truly “Golden Gujarat”. I welcome all business leaders to be part of ‘Swarnim Gujarat’ and participate in Vibrant Gujarat 2011 on 12th and 13th January 2011 at Mahatma Mandir in Gandhinagar.

Issue 5

Shri Saurabhbhai Patel

Minister of State for Civil Aviation, Cottage Industries, Salt Industries, Printing &

Stationary (Independent Charge) Industries, Mines, Minerals, Planning, Finance, Energy and Petrochemicals

Gujarat Update

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Dahej – Economic Zone of the Future Dahej SEZ has been ranked 22nd in the list of ‘Economic Zones of the Future 2010-11’ by fDi magazine – belonging to the Financial Times group. Dahej SEZ is the only multi-product SEZ from India to achieve this distinction. Over 700 economic zones globally were invited by fDi magazine to complete a survey requesting both qualitative and quantitative data regarding their economic zones. This list of 700 was reduced to 200 based on information collected by fDi Benchmark and information submitted by zones. These zones included free trade zones, special economic zones and country zones. The information collected was set under nine categories: Economic Potential, Cost Effectiveness, Facilities, Transportation, Incentives, Best Promotion, Airport, Port and Overall Description. Dahej SEZ is a multi-product SEZ being developed by Dahej SEZ Ltd. (DSL), a company jointly promoted by GIDC & ONGC. It is located within Delhi-Mumbai Industrial Corridor (DMIC) and Dahej Petroleum, Chemicals and Petrochemicals Region (PCPIR). The SEZ is spread over 1700 hectares. Dahej SEZ is in advanced stage of development with all infrastructure namely internal roads, water supply, storm water disposal, treated effluent disposal facility, power supply etc. in place. DSL has, in all, allotted plots to 42 industrial units in SEZ. OPaL is an anchor unit with capital investment of Rs. 13,000 crore in a petrochemical complex. The other important units include:

DIC Fine Chemicals for production of ink,

Rallis India Ltd. for production of agro-chemicals,

Makhteshim-Agan India Pvt. Ltd. for agro-chemicals,

Indofil Chemicals Company for agro-chemicals,

Roxul-Rockwool Insulation India Pvt. Ltd. for insulation material,

Torrent Pharmaceuticals Ltd. for pharma products,

Godrej & Boys Mfg. Co. Ltd. for heavy fabrication,

ABG Shipyard Ltd for ship, ancillaries etc. The total investment in the SEZ would be more than Rs. 22,000 crore with exports of over Rs. 75,000 crore when all units commence commercial production. It is expected that Dahej SEZ will be fully developed and all units will be in operation within the next two years.

Carborundum Universal to set up alumina project (24/05/2010) Carborundum Universal Limited (CUMI), a Murugappa Group company based in Chennai, is all set to pump in Rs 50-75 crore for setting up a brown fused alumina (BFA) plant in Kutch district of Gujarat. The project is likely to be developed in joint venture with state-owned mining major-Gujarat Mineral Development Corporation (GMDC). The company has identified Nakhatrana area of mineral rich Kutch region for the brown fused alumina project. "Around Rs 50-75 crore will be infused for the plant and we intend to start implementation of the project this year," said Mr. K Srinivasan, managing director, Carborundum Universal Ltd. The proposed plant will have a capacity of 35,000 tonnes and it will be operational after 18 months from the date the company starts construction of the plant. The company also has plans to set up a power plant along with the project. "It will be a coal-based power project with a capacity of 20 MW," he said. Australian Trade Commission to open office in Ahmedabad (18/05/2010) The Australian Trade Commission, the trade & investment development agency of Australian government has decided to open an office in Ahmedabad. "Gujarat is a very important business destination for Australian companies. Australian companies coming to India visit Delhi or Mumbai, but miss out on growth centres like Gujarat. This is the reason why we are establishing our presence in Ahmedabad, and will be starting an office here in due course," said Mr. Peter Forby, Australian consul general for western India and trade commissioner. "We see potential Australian role in various sectors in Gujarat. Automotive technologies, financial services, medical & biotechnology, marine

sector including ports & coastal infrastructure, are some of them," Mr. Forby said. He listed food & beverages, hospitality, infrastructure, building & construction, clean energy, mining and education as the other sectors where there was scope for Australian companies. “Australia can provide value-added competitive

solutions and expertise both in traditional and emerging business sectors,” he said. He also mentioned, “We also see many businesses and entrepreneurs from Gujarat investing in Australia.” Mr. Peter Linford, Minister Commercial, Australian Trade Commission, said, “India is the fastest growing export market for Australia. The bilateral trade between the two countries rose to $21.7 billion last year, and we expect

this strong double digit growth to continue over the next few years.” Gemac Energy to build power plant in Gujarat (18/05/2010) The city based Gemac Energy Ltd, an engineering, procurement and construction (EPC) company in the power sector, has signed memoranda of understanding (MOU) for setting up two power plants in Gujarat. The MOUs are with Urok group to set up 2×660 MW coal based plant near Pipavav Port and with the Kaneria group for a 2×250 MW gas based plant near Surat respectively. The Urok group promoted by Subhash Shihora, a non-resident Indian (NRI) businessman, has already signed an MOU with the Gujarat government and 750 acre of land has been notified and cleared. The thermal power plant outlay is pegged at Rs. 8,000 crore and the plant will be operational within 42 months of financial closure by Urok group. According to Gemac officials, the Kaneria group will take around 12 months to achieve financial closure. The first phase of the project will be

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handed over within 24 months of tying up the funds for the projects. Surya group to set up Rs 4,000 crore cement project in Kutch (17/05/2010) The diversified Surya Group plans to set up five million-tonne cement project in Kutch district of Gujarat at an investment of Rs 4,000 crore. "We shall be setting up our first cement plant project in Kutch under the brand name Surya Global Cement, for which the project report is currently being prepared," Surya Group Chairman Mr. Jaiprakash Agarwal told reporters. "We expect to commission the project by the end of 2012," he said. "The group will ink a Memorandum of Understanding with the state government for setting up this plant, during the Vibrant Gujarat Investor Summit 2011," Mr. Agarwal said. "Our GI pipe manufacturing facility, set up with an investment of Rs. 400 crore last year at Bhuj in Kutch district has been commissioned", he said. RIL to set up synthetic rubber manufacturing plant with Sibur (17/05/2010) India’s most valuable company, Reliance Industries Ltd (RIL) will set up a synthetic rubber manufacturing plant in a joint venture with Russian petrochemicals maker Sibur OAO, seeking to tap growing demand from the automobile industry. The venture will produce “butyl rubber”, or synthetic rubber, at RIL’s integrated petrochemical complex in Jamnagar, Gujarat, the company said in a statement announcing the agreement. An RIL spokesperson said the Indian rubber industry was “growing rapidly on the back of automobile demand in India and the subcontinent”. The company said the rubber plant will be on top of its plans to expand the

Jamnagar petrochemical complex, as announced by Chairman, Mr. Mukesh Ambani in November. The RIL refining complex is the world’s largest, with the capacity to process around 1.2 million barrels of crude a day. Hon. CM lays foundation stone for Rs. 2,870 crore projects at GNFC (14/05/2010) Honorable Chief Minister Shri Narendra Modi laid foundation for two projects worth Rs. 2,870 crore at GNFC, Bharuch. He remarked that “Gujarat has taken innovative strides, by taking up new developments projects in various sectors”. Gujarat continues to make valuable contribution towards the country’s

development. The ammonia-gas

conversion project is likely to benefit the central government, in terms of the subsidy by GNFC to Indian Government, to the tune of Rs. 440 crore. The Chief Minister said that Dahej truly stands out in global

comparison; it has carved out a unique global niche as a petroleum terminal-cum-port. Gujarat has gained and retained 9.6% growth rate in agriculture and Gujarat has been spearheading the agriculture revolution, added CM. Another project, the TDI project, is one of its kind in South-East Asia and Africa, GNFC is being credited as the lone manufacturing unit producing Toluene Dye Associate. Rs. 1,655 crore is to be spent on it and it is likely to start operations by December 2011. The CM highlighted the state’s strategy under which qualitative changes are brought upon by implementing value-addition measures in Chemical, Petro-Chemical, and Pharmaceuticals products. The outcome is very prominent; the public sector units have created a positive influence in global markets. The state has implemented various dynamic policy initiatives, added the CM.

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Gujarat earns the maximum carbon-credit in the country; around 39% of nation’s total carbon-credit is earned by the state. Entrepreneurship and innovations are our forte, he added. Minister of State for Energy, Shri Saurabh Patel claimed that the upcoming projects are going blaze a new trail in chemical industries. Gujarat is the Growth Engine, making immense contribution in nation’s economy. Precision Wires plans to set up wind energy project in Gujarat (14/05/2010) Precision Wires India is looking to set up a wind energy project in Gujarat at a cost of around Rs 12 crore. The board of the company has approved the proposal on May 13. Precision Wires India is the largest manufacturer of enamelled copper winding wires in India. Its product range includes round wire, rectangular wire, continuously transposed cables and paper insulated copper conductors. Taiwan industry federation signs pact with Gujarat (13/05/2010) Chinese National Federation of Industries (CNFI), the biggest industry body of Taiwan, on Wednesday signed an MoU with iNDEXTb for facilitating investment and business between Gujarat and regions of Taiwan. A number of top bureaucrats attended the meeting at the Chief Secretary’s office. The CNFI team, which has 152 member associations, was given an in-depth account by the CEO if GIDB, Shri A K Sharma, IAS. Mr. Sharma detailed out the avenues available for investments in the fully functional Petroleum, Chemical and Petrochemical Investment Region (PCPIR) in the state at Dahej, and the upcoming global hub of economic activity viz. the DMIC region. Chairman of CNFI, Mr. Preston W Chen informed that the delegation was scouting for opportunities in petrochemical, pharmaceutical and alternative energy. Mr. Chen, the head of

the delegation of 16 representatives, said the body will participate in the Vibrant Gujarat Summit to be held in 2011. This is the second delegation from Taiwan to visit Gujarat in the last two months, said a senior state government official. Mr. M Sahu, IAS, Principal Secretary (Industries and Mines Department) said, “though the total area for development covered in the DMIC region by Gujarat is 38%, investments from Gujarat will be 60-65 % of the total in the

region, due to the business friendly policies and the legal framework and PPP development initiatives by the government”. State’s biggest golf course coming to Sanand (13/05/2010) Here is a piece of good

news for golfers. Ahmedabad is going to have one more 18-hole golf course soon. Navratna Organisers & Developers Pvt Ltd, a city-based realty company, has joined hands with Nicklaus Design, the firm promoted by celebrated golfer Jack Nicklaus, to design the second course in the city. Spread over 165 acres, the upcoming golf course once completed will be the biggest in the state. According to realty sources, the project will have 700 farmhouses and homes that will be spread over 500 acres, which will include the golf course. The scheme is located in Sanand and is expected to be ready with its first phase by 2011. The project will be completed in three phases. Navratna had signed a memorandum of understanding (MoU) with Gujarat government during Vibrant Gujarat Global Investors Summit -2007. Navratna Managing Director, Mr. Devang Shah, who himself is a golfer, said, “I have been playing golf for the past 13 years and have always felt that Ahmedabad has golf enthusiasts who appreciate and accept creativity with open arms. Also with the kind of development that is

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taking place because of the Tatas’ Nano plant, MRF and other similar ancillary units, people will start using these places as their first homes in three to five years,” added Mr. Shah. There are four golf courses in the city: Kensville Golf & Country Club with Gulmohar Golf Greens & Country Club, Cambay Resorts in Gandhinagar and Army Golf Course in Shahibaug. Cargo plans 50 MW solar-thermal project (11/05/2010) Cargo Power and Infrastructure Limited, a unit of Cargo Motors, is planning to diversify into solar energy with a power plant at Rapar in Kutch. The company has already signed a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Ltd (GUVNL) for 25 MW of solar-thermal power, and talks are on to scale it up to 50 MW. Work on a pilot project of 1 MW will begin soon, which will use concentrating solar power (CSP) technology. The company will take 2-3 years for setting up 50 MW capacity, with a likely investment of Rs. 650-700 crore. Mr. Dhruv Batra, Director, Cargo Power and Infrastructure Ltd, said, "We are the first company in the state and country to have signed PPA for solar thermal power project. Other companies in the solar energy space have signed for solar photovoltaic (PV) unit. We received letter of intent from the state government in August last year and have partnered with an Israeli company for technology." Mr. Jayant Nanda, Director, Cargo Motors Ltd, said, "We are in talks to scale up the power project to 50 MW. With capital cost being Rs 13-14 crore per MW, that translates into an investment of Rs 650-700 crore for 50 MW. We are acquiring 400 acres of land. The project requires 6-8 acres per MW." The project will also be eligible for carbon credits, or CERs, for 10 years. Batra said, "For 25 MW, we will generate CERs worth Rs 3-3.5 crore annually. CERs will be shared between the

company and the state government as per the agreed formula. To fund the project, initial equity will come from promoters. Later on, banks and domestic / overseas funds interested in funding renewable energy projects will be approached. India gets first carbon fibre plant (10/05/2010) Former President Dr A P J Abdul Kalam on Sunday inaugurated the country’s first carbon fibre manufacturing facility. The Rs. 250-crore

set up will produce lightweight material for use in defence, aerospace and infrastructure — under technology transfer from the Council of Scientific and Industrial Research’s (CSIR)

National Aerospace Laboratory (NAL), which had developed the ultra-light material for the Light Combat Aircraft. Mr. Kalpesh Patel, CMD, Kemrock Industries and Exports Limited, said their facility’s 400 tonne per annum output will primarily service the domestic aerospace needs —Indian Space Research Organisation and Hindustan Aeronautics Limited. RAK Ceramics to invest Rs 600 crore to set up tile plant (09/05/2010) Ceramic tiles manufacturer, RAK Ceramics India, plans to set up a tile plant in Ahmedabad, Gujarat, at an invest Rs. 600 crore over the next 18 months, a top company official said. RAK Ceramics is a subsidiary of USD one billion UAE-headquartered Ras Al Khaimah (RAK). "We will be setting up a unit in Ahmedabad with a production capacity of 10,000 sq. m. tiles per day. The investment will be over Rs. 600 crore and the plant will be commissioned by early-2012. We also intend to scale-up the capacity to 70,000 sq. m. tiles per day in the next seven years," RAK Ceramics' Director, Mr. Sunil Malesha said.

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The company also exports its tiles to countries such as Taiwan, Korea, Israel, the UAE, Sri Lanka and Australia. Jain Irrigation takes up onion contract farming in Gujarat (06/05/2010) Jain Irrigation Systems Ltd (JISL), India's largest player in onion dehydration market, has set its eyes on Gujarat for undertaking contract farming of onion. On an experimental basis, the company has already brought 62-100 acres of land under onion contract farming in tribal district of Dahod since the beginning of 2010. JISL has tied-up with Satguru Foundation, a Non-Government Organisation (NGO), for undertaking contract farming in the tribal district. "The company aims to cover 500 acres under onion contract farming this year and subsequently scale it up to 2,000-2,500 acres in the next few years," said Mr. Sunil Deshpande, senior vice-president, JISL. Apart from buying back onions from tribal farmers, the company will also provide technical knowledge to the farmers for higher produce of onion. JISL already operates 170 metric tonnes (MT) per day onion dehydration plant near Vadodara and plans to ramp up the capacity to 250 MT by December 2010. "The company intends to pump in Rs 10 crore for the expansion," Mr. Deshpande revealed. Indian onion dehydration industry has grown rapidly to become the second largest producer of dehydrated onions in the world. JISL is the largest player in the organised onion dehydration market in the country and ranks third in the global market. Gujarat, Canada to work on direct rough diamonds supply (06/05/2010) Gujarat has stepped up efforts for direct supply of rough diamonds from Canada, in a bid to ensure availability of adequate raw material for its large diamond cutting & polishing industry,

located mostly in Surat, Ahmedabad and certain pockets of Saurashtra. Honourable Chief minister Mr. Narendra Modi stressed on the need for eliminating middlemen and starting direct supply of rough diamonds during a meeting with a high-level delegation of members of parliament from Canada last week. The Canadian delegation was in the state to witness Swarnim Gujarat celebrations. "We mine rough diamonds and then sell them to Antwerp, from where they are supplied to India and other places. The idea is to start the supply straight to Gujarat, which can be mutually beneficial for Canada and Gujarat"

said Mr. Yasmin Ratansi, Canadian MP and one of the delegation members. Mr. Modi reportedly told the delegation, "Gujarat is the hub of diamond cutting & polishing, while Canada is a leading rough diamond producing country. Gujarat and Canada can form a strategic partnership in

diamond industry." Mr. Bob Delaney, another member of the delegation, said, "The world is running out of diamonds, and we all know that Gujarat needs large quantity of rough to keep the units and workforce going. We believe there could be an easy and happy marriage between Gujarat and Canada in diamond industry.” Mr. Patrick Brown, another member of the delegation, said they had sought Gujarat's expertise in developing diamond cutting & polishing industry in Canada. JB Chemicals to set up Rs. 60 crore Gujarat unit (06/05/2010) Drug formulations and active pharmaceutical ingredient (API) maker JB Chemicals and Pharmaceuticals Ltd plans to invest about Rs. 50-60 crore to set up a new unit in Gujarat by FY13, its top official said.

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"The investment will happen in FY12 and FY13 and the plant will be operational in the fourth quarter of FY13," President Mr. Pranabh Mody told Reuters. The new unit has been planned to meet growth in formulations business and company's key product, lozenges, he added. Gujarat hotspot for investors (04/05/2010) Seven Gujarat cities figure among the top 100 cities in India, according to a study by Indicus Analytics. That’s not surprising at all as the state is one of the most favorite destinations of investors. From Tata to Ambani, Sunil Bharti Mittal to Venugopal Dhoot to the Ruias, the who’s who of corporate India is flocking to Gujarat. Its not only the domestic business moguls who are making sure they are doing business with the state but also the international goliaths who’re making a beeline for the state, which is making a bid for acquiring the tag of the country’s most investment-friendly destination. Mr. Parimal Nathwani, MP and group president, corporate affairs, Reliance Industries Ltd, says, “The shine of Gujarat on the golden jubilee year is largely due to focus on industrial economy, entrepreneurship of people, political stability and peace loving nature of people of the state.” Gujarat’s fertile investment climate has helped MNCs like GM, Hitachi, CLP and Bombardier to set up its base in the state. Talking to reporters on the sidelines of an investment summit in Gujarat, Mr. Kumarmangalam Birla, chairman, Aditya Birla Group had remarked, “The growth in Gujarat is excellent. We would prefer Gujarat for our future investments.” In fact, the state is being hailed as the ideal haven for investments particularly over the past few years. Three years ago, Tata Group chief Mr. Ratan Tata had made his famous observation, “It is stupid if you are not in Gujarat.” He followed it up by bringing his dream project Nano into the state a year down the line. It goes to the credit of the pro-active state government that at a time when most states are selling themselves as investment

destinations, in this new marketing arena, the state is emerging as a major gladiator. Armed with deft media management and high decibel publicity blitzkriegs, its biennial Vibrant Gujarat Global Investors Summits (VGGIS) are fast becoming case studies for all that state governments should do to market their USPs to investors effectively. With the state chief minister Mr. Narendra Modi himself being projected as the brand ambassador of fast-track development of his state, Gujarat is vying for the top slot in the investment sweepstakes and Mr. Modi is a strong contender for the best CEO CM award. Aerospace university to be set up in Gujarat (02/05/2010) Gujarat is set to become a seat of learning for aviation studies. The state will house India’s first aerospace university near Valsad in south Gujarat — presently, there are only two such universities in the world. Gujarat Vittal Innovation City (GVIC), a joint venture has tied up with leading aviation intelligence provider Centre for Asia Pacific Aviation (CAPA) to develop the world’s largest aerospace university. The Rs. 400 crore project will be a part of GVIC’s upcoming special economic zone. “The company intends to start work on the project in 2010, which happens to be the golden jubilee year of Gujarat. The project will be commissioned by the end of 2012,” said Mr. Pankaj Sharan, chief operating officer of GVIC. The university will offer short-term as well as long-term courses of integrated multi-disciplinary education and training, says CAPA South Asia chief Mr. Kapil Kaul, adding, “The courses would include pilot training, air traffic control, maintenance, repairing and overhauling of aircraft, customer service, aviation law among others. Besides, an airstrip of 1,800 metre is also being planned for a flying school.” CAPA will bring in expertise from international institutes like US-based Embry-Riddle Aeronautical University (aerospace engineering), New Zealand’s Airways International (air traffic training) and UK’s

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Oxford Aviation Academy (pilot training) to Gujarat. A detailed evaluation of numerous sites across India was done before finalising the location. Gujarat was chosen due to its proximity to Mumbai, availability of land and good infrastructure — the state already has three flying clubs. Apart from the university, GVIC will also house a dedicated Helicopter City, which will facilitate research and development, manufacturing and maintenance apart from providing ancillary support to business jets and helicopters. RPG group company to set up carbon black plant at Mundra (29/04/2010) RPG group company Phillips Carbon Black is in the process of setting up a 50,000 MT carbon black plant at Mundra in Gujarat which would be commissioned this financial year, Phillips Carbon Black Chairman, Mr. Sanjiv Goenka said. The company would incur a capital expenditure of Rs. 350 crore for setting up two carbon black plants and a power plant, a top company official said. He said that power generation capacity would also go up. While the company was setting up an 8-MW captive power plant at Mundra, another 18 MW plant would also be set up. RIL makes fourth oil discovery in Cambay Basin (28/04/2010) Reliance Industries Ltd (RIL) said it has made a fourth oil discovery in the Cambay Basin in Gujarat. Two hydrocarbon-bearing zones were discovered in a well drilled in exploration block CB—ONN—2003/1, which flowed 300 barrels of oil during testing, the company said in a press statement here. “The discovery is significant as this play fairway is expected to open more oil pool areas, leading

to better hydrocarbon potential within the block,” it said. The 635-sq km CB—ONN—2003/1 block is located at a distance of about 130 km from Ahmedabad, in Gujarat. “RIL is continuing further exploratory drilling efforts in the blocks,” the statement said. “This discovery supplements RIL’s understanding of the petroleum system in the Cambay Basin in general and this block in particular,” it added. Based on interpretation of the acquired 3D seismic data, several more prospects with upside potential have been identified at different stratigraphic levels, RIL said. Government to develop 20 new industrial clusters (28/04/2010) Gujarat government has decided to develop 20 new industrial clusters in the state. Stating this, additional commissioner of industries, Gujarat government, Mr. HD Shrimali said the government will call a meeting in this regard within a month. "Officials of Gujarat government will meet next month to decide on forming clusters. They will deliberate on where to locate the new clusters and which cluster should be for which industry. After deciding on these two issues, the state government will develop common facility centers in all clusters, for which the state government will give subsidy of 50% while Centre will provide a subsidy of another 30%. Rest of the 20% will be paid by the cluster members," said Shrimali.

At present, the state has 83 industrial clusters with more than 3.50 lakh registered SMEs. "Of the 3.50 lakh SMEs, Ahmedabad alone has over 20%, followed by Surat with 15% and Rajkot with 10%," said Mr. Shrimali during the launch of cluster programme by the Confederation of Indian Industries (CII) here. The main objective of the CII's

programme was to further strengthen Gujarat's small and medium enterprises and component suppliers so as to meet the requirements of the

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global market, as well as to see the Indian MSMEs integrate into the global supply chain. Mr. Yatindra Sharma, Chairman, CII Gujarat State Council said, "The objective of the cluster for competitiveness programme is to increase efficiency, provide opportunity to interact and network with other business concerns, assist in improving employee relationship and enhance employee performance to improve productivity." Gujarat makes giant strides in seafood exports (28/04/2010) Increasingly, frozen fish from Gujarat is becoming the mainstay on restaurant tables in countries of South- East Asia. “Traditional Indian seafood delicacies such as seer fish, crocker, snapper and a large catch of leather jacket fish this year were sought after by Malaysia, Thailand, Hong Kong and China. Over and above their own catch, Indian seafood has begun to conquer the plates and palates of consumers in these countries,” Mr. Kenny Thomas, Managing Director of Ginny Marine Trades, said. The Gujarat-based seafood company, which is mainly into squid and cuttlefish exports to Europe, said that the catch from Gujarat coast has now become more diversified and seafood processing and freezing capacities have been built up to cater to the new-found export demand. The spurt in demand from South-East Asian countries and increased catches-for-export from the Gujarat coast has transformed Pipavav into the biggest port for seafood export in the country. The port ranks number one not only in volume but also in value of seafood exports. The rise of Pipavav as the prime port for seafood export also reflects the spatial spread in fishing operations across the country's coast along with requisite infrastructure to process and freeze the large amount of catch coming into the fishing harbours. The processing and freezing facilities set

up in Gujarat are now as good as those found in Kerala, sources in the Seafood Exporters Association of India said. JnNURM projects in Gujarat on right track (27/04/2010) Pleased with the progress JnNURM projects have made in Gujarat, Union urban development secretary Mr. M. Ramchandran said the state was ahead in terms of certain key reforms and some cities have met their deadlines for projects. Mr. Ramchandran was in Ahmedabad to review the progress of JnNURM projects and had convened meetings with officials of Rajasthan and Goa. Mr. Ramchandran said that, “out of the 27 projects recently approved in the state under JnNURM, 23 have been completed on time. Most projects deal with water supply, sewerage, BRTS and storm water drains”. “Gujarat has assured that the additional 20 projects that were approved apart from the 27 projects earlier, would be completed by 2011-12. The centre had earmarked a grant of Rs. 2,365 crore out of which JnNURM has allotted Rs. 1, 370 crore for Gujarat,” Mr. Ramchandran said. The review committee acknowledged the fact that as promised, the stamp duty in Gujarat has been brought down to 4.9% and decentralisation has been implemented in urban local bodies. State keen to set up defence component units (22/04/2010)

A private company has approached the state government to set up an Rs 600-crore plant in south Gujarat to manufacture defence components, Mr. Arvind Agarwal, IAS, Vice Chairman and MD, Gujarat Industrial Development Corporation (GIDC) said.

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He was speaking at a seminar on ‘Emerging Opportunities in the Defence Sector and Emerging Areas for the Private Sector’ in Ahmedabad. Although Gujarat has a sizeable presence of manufacturing units, none of them cater to the defence sector. At present, 70% of India’s defence requirements are met through imports. But a latest policy aims to reverse this trend and make the country self-reliant in defence manufacture. State Energy Minister Shri Saurabh Patel said the government and entrepreneurs in Gujarat are very keen on exploring the possibilities for setting up joint ventures with overseas companies supplying defence equipment to India by way of capital and technology inflows. “We are ready to support the Ministry of Defence. We can even have an SEZ exclusively for defence component manufacturing in the state. We are formulating a new policy on defence production,” he said. Mr. Agarwal added that Gujarat-based companies are manufacturing a lot of components for the Indian Navy. For instance, Elecon, a Vadodara-based company, has been making gearboxes for the Navy.

Japanese companies to develop eco-friendly townships (22/04/2010) A number of large Japanese companies have evinced interest in developing eco-friendly smart townships in the Delhi-Mumbai Industrial Corridor (DMIC) influence area in Gujarat. “Four locations have already been identified. There

are plans to develop Dahej and Changodar in the first phase. The other two townships may come up near Dholera and Sanand in the second phase,” said GIDC vice-chairman and managing director,

Mr. Arvind Agarwal. While Hitachi group plans to develop a green township near Dahej, Mitsubishi group is set to create a modern township at Changodar. “A team from Mitsubishi had visited Dholera and Sanand recently. They are keen to bring Japanese experience to the state,” said Mr. Agarwal. Other Japanese companies including Itochu Corporation (water treatment, solar power), Kyocera (solar panel), Tokyo Electric Power Co (smart grid), Hyflux (water treatment) and Excorp (recycling) will provide their expertise in townships development.

International Collaboration

Taiwan

A high profile business delegation from Taiwan visited Gujarat and met senior Government officials of Gujarat. The 16-member delegation included representatives from sectors like petrochemical, construction, high pressure gas, textile, life sciences, environment protection engineering, machinery industry, paper grade chemical pulp, among others. Industrial Extension Bureau and Chinese National Federation of Industries (Taiwan) signed an MoU for mutual cooperation. The MoU was signed by Mr. B B Swain, IAS,

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industries commissioner and Chairman, iNDEXTb, and Mr. Preston Chen Wu, president of CNFI, in the presence of the Chief Secretary Mr. A K Joti, IAS. The two sides will explore mutual benefits from increased importance of bi-lateral trade, and also facilitate and develop innovative programmes. The delegation was provided an in-depth account of the avenues available for investments in the petroleum chemical and petrochemical investment region at Dahej, and the upcoming projects like Delhi Mumbai Industrial Corridor (DMIC).

Canada

A Canadian delegation consisting of MPs from federal and provincial governments and members of Gujarati Business Association visited Ahmedabad in May 2010. The delegation included Ms. Yasmin Ratansi, Member of Parliament, House of Commons, Mr. Devinder Shory, MP from Calgary Northeast province, Mr. Bob Delaney, Member of provincial parliament, Mississauga - Streetsville, Ontario and Mr. Mukund Purohit, President of Gujarati Business Association. The Honourable Minister of State for Industries interacted with the delegation about trade and investment collaboration between Canada and Gujarat and extended an invitation for Vibrant Gujarat 2011.

Brazil

A five-member delegation from Brazil met senior officials of the Gujarat government and declared that the government of Brazil, the Brazil-India Chamber of Commerce and Apex Brasil (the Brazilian Trade and Investment Promotion Agency) would be actively participating in the next summit of Vibrant Gujarat 2011 The delegation led by Mr. Roberto Paranhos do Riobranco, president, Brazil-India Chamber of Commerce met Mr. M Sahu, IAS – Principal Secretary (Industries & Mines Department), Mr. B

B Swain, IAS – Industries Commissioner, senior officers of iNDEXTb and teams from PwC and APCO and assured the state government of the private sector's participation in seminars and one-to-one business meetings, exhibitions and conventions. According to Mr. Riobranco, Brazilian companies are looking for opportunities in India in sectors like machinery, healthcare, chemicals and IT.

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Gujarat is endowed with lignite, oil & gas reserves and renewable sources of power generation like solar power, water-based power, wind and geo thermal power generation.

The State has an atomic power plant situated in Kakrapar near Surat, with a power generation capacity of 440 MW. The plant capacity is being upgraded with two additional nuclear reactors of 700 MW each – thus increasing the nuclear power generation capacity to 1840 MW in next five years. The project is being developed by Nuclear Power Corporation of India Ltd (NPCIL) and will have the distinction of being the first indigenous pressurized heavy water reactor-based power plant in India.

At Mithi Virdi in Bhavnagar district, NPCIL is considering to set up six nuclear reactors of 1,000 MW. The site has been finalized and other formalities are underway for setting up the plant here. This plant will fetch-in investments of Rs. 60,000 crore in the region.

A massive coal-fired Ultra Mega Power Project (UMPP) by Tata Power Ltd is coming up with total power generation capacity of 4,000 MW at a cost of around Rs.20,000 crore in Kutch. Another UMPP has been sanctioned for Gujarat with a generation capacity of 4,000 MW, which will be constructed near Dholavira, where an SEZ is coming up.

7 May 2010: Honourable Minister of State for Energy, Industries and Finance, Shri Saurabh Patel said that two 1,000 MW gas-based power projects will be set up in the state.

He said Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) will set up the Rs 8,000 crore gas-based power projects.

"State government will provide land, water and other facilities to DMICDC for setting up of both these projects for which sites are yet to be finalized," Mr. Patel said.

Focal Point Gujarat to be the Power Mall of India by Year 2020

Gujarat’s recognition as an industrial state is based on the availability of key infrastructure facilities including power. It is a vibrant state, which has entered into its golden jubilee year and has a visionary Chief Minister Mr. Narendra Modi, who sees a new window of opportunity in electrical power, to make Gujarat the power shop for entire India. Gujarat plans to be power surplus in future, even if 50% of the envisioned policy is fulfilled.

Gujarat has an existing policy or a policy on the anvil for all sources of energy – coal, lignite, hydro, geo thermal, ocean thermal, wind, nuclear, solar PV, solar thermal, bio-mass, tidal wave etc.

Gujarat has been faring well on the

energy front as the State has

attracted a large number of private

players in the sector. The total

installed capacity of the State as on

October 2009 was 11,636 MW –

6,107 MW by Gujarat State

Electricity Corporation Ltd

(GSECL),

2,852 MW by private sector and

2,677 MW by the Central sector.

The private sector contributes about 25% to the total power generation capacity in the State.

Gujarat is aiming to be power surplus state by year 2020. The state aims to become a hub for power generation activities with its focus on doubling the power generation during the XI 5-year plan in order

to keep pace with the rising energy demand, which is poised to grow at a rate of 10% every year. GUVNL or Gujarat Energy Ministry would be able to supply cheap, affordable, uninterrupted, readily available electrical power to future buyers of private or public sector companies or any power deprived states of India. The reasons for the anticipated major share of Gujarat in power pie are –

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Smartly developed power grid - Gujarat is the only state to have almost separate power grids for

industrial, residential and agricultural purposes, making it a unique state for power producing private sector companies to have their power evacuation done easily. Gujarat has the highest number of power substations of 66 KV and above in India. The new Gujarat Electrical Grid Policy forbids new construction of less than 66 KV substations in the state and aims at up-gradation of all existing 11KV and 33KV stations in the near future.

Unique Land Policy supporting industrial growth - Almost any industry can directly buy barren, non fertile or agricultural land directly from land owner/farmer by using Gujarat’s simple process of land conversion called 63-AA and there is no restriction of any region of Gujarat.

Most developers from the power generation industry are sensitive to specific regions considering project necessity, local environments, water, roads and other site accessibility issues. With the current Land Policy in Gujarat, project developers can select a suitable site easily, especially for renewable power generation projects like Solar PV, wind power.

Focus on renewable energy sources - Gujarat is proactively considering development of renewable energy sources. For this, the State has also declared a separate Solar Power Policy so as to encourage solar power generation projects as a means for socio-economic development of the backward regions and to promote green and clean power.

Gujarat a power hub, is likely to attract investments worth Rs. 65,000 crore in the next 3-4 years in the renewable energy sector. These investments would happen in the field of wind energy (4,000 MW), biomass (1,000 MW) and solar power (716 MW). Already 34 national and international project developers have shown interest to set up 365 MW solar Photovoltaic and 351 MW solar thermal power projects in the State. Nearly 2-3% of the total power requirements of the State are expected to be met through solar power alone.

Gujarat has the maximum capacity additions in wind power generation with a growth rate of 99.6%, as the total generation capacity grew from 200 MW in 2005-06 to 1185 MW in 2007-08.

The coming years will witness Gujarat emerging as a hub not only for power generation from conventional sources but also from environmentally friendly renewable sources. The next 50 years look bright with Gujarat embarking upon large power generation capacities that will come up, proving a booster to the State industries and the society as a whole.

Power scenario of Gujarat over the next five years

Company Type Place Current capacity Planned capacity

Nuclear Power Corporation India Ltd. (NPCIL)

Nuclear Kakrapar, Surat 440 MW 1840 MW in five years

NPCIL Nuclear Mithi Virdi, Bhavanagar

-- 6000 MW in three years

Tata Power UMPP (Ultra Mega Power Project)

Coal-Fired Dholavira ---- 4000 MW in four years

Private Wind Distributed 1184.5 MW 4000 MW in five years

Private Bio-mass Distributed ---- 1000 MW in five years

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13 May 2010 - Utran gets India's first 370 MW gas-based power station

Surat is the second Asian city after Hong Kong to have environmentally-friendly power station, said honourable Chief Minister Mr. Narendra Modi while dedicating India's first 370 MW gas-based combined-cycle power station, owned by Gujarat State Electricity Corporation Limited (GSECL) to the nation on 13 May 2010.

The ambitious power plant that has been constructed at the cost of Rs 1,414 crore at Utran power house complex, 10 km away from Surat is expected to generate 88.80 lakh units of electricity per day with the daily consumption of 15.60 lakh standard cubic metre (SCM) gas. The plant is an extension of the existing 135 MW combined-cycle power plant and will add up to the 8 per cent generating capacity of GSECL. It is the first combined-cycle plant in the country that is utilizing advanced gas turbine technology for least damage to the ecology and optimal fuel utilization to ensure no water and air pollution.

Addressing a public gathering, honourable Chief Minister Mr. Narendra Modi said, "Gujarat has become the only state in the country that is producing 32% gas-based electricity. Till now, people were going to Hong Kong to witness environmental-friendly power station, now they will come to Surat."

Talking about the achievements of the government in Gujarat, honourable Minister of State for Energy Mr. Saurabh Patel said, "The state government has decided to provide electricity at Rs 1.50 paise per unit to the BPL families. Every year, 100 to 150 new electricity sub-stations are being set up in the remote areas to provide electricity to the residents."

Energy and Petrochemical Secretary, Mr. D J Pandian said, "Even though the per capita consumption of electricity in Gujarat is significantly higher than the national and Asian figures, it is still far below the world average and the government of Gujarat has given prime importance to the development of power sector."

Private Solar (PV and thermal)

Distributed ---- 716 MW in two years

NTPC Solar Thermal

Distributed ---- 1000 MW in four years

Private Tidal Wave Kutchh -- 100 MW

Tata Power Geo thermal Amreli --- 5 MW

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Opportunities & Challenges in Mineral and Mining Sector A Seminar on “Opportunities & Challenges in Mineral and Mining Sector” was organized in Ahmedabad on 21 May 2010 by CII and Gujarat Mineral Development Corporation (GMDC). It was inaugurated by Mr. V. S. Gadhvi, IAS, Managing Director of GMDC who informed the audience that 33 major and 17 minor minerals were being mined in Gujarat. Mr. Maheshwar Sahu, IAS, Principal Secretary - Industries and Mines Department, stated the objective of the Seminar was to identify the challenges in the sector and to recommend steps for meeting them. "Gujarat is a geologically blessed State. In the country, the State is in a leading position in major-mineral production value (including oil and natural gas). It ranks first in production of fluorspar and silica sand, second in bauxite, lignite, fireclay and clay, third in quartz & ball clay and fourth in limestone," informed Mr. Sahu. “With state of the art infrastructure facilities, equipped with a modern technology, Kutch can be developed as a modern version of Jamshedpur," commented the Director of Jaypee Cement, Mr. VS Bajaj, who was a speaker during the Seminar. Mr. Chetan Tamboli, past chairman - CII Gujarat Council and MD of Steel Cast Ltd, Mr. Chetan Shah, CEO & MD of Ashapura Mines Ltd, Mr. Sanjay Shah, MD of Cube Mines & Minerals Ltd, Mr. K Srinivasan, MD of Carborundum Universal, Mr. Jan Kotte, VP (operations) of Aluchem India Ltd and Mr. Gurdeep Singh, Head - Centre of Mining and Environment of Indian School of Mines were some of the other respected speakers at the event. Upcoming sector-specific seminars Sector Date

Water Management 5 June 2010

Moving Towards Green Energy Economy 5 June 2010

Urban Development 12 June 2010

Tourism 24 June 2010

Port-led development 29 June 2010

Healthcare 1 July 2010

Contact Us

Industrial Extension Bureau Block No 18 2nd Floor, Udyog Bhavan Sector 11, Gandhinagar - 382010 Gujarat, India +91 79 232 41663 +91 79 232 56592 +91 79 232 50492 +91 79 232 50493 Fax: +91 79 232 50490 indextb@indextb.com Find us on the Web: www.indextb.com www.vibrantgujarat.com

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16 Events in May 2010