Gujarat is known as a land of entrepreneurs where development is given special importance. Its state-of-the-art infrastructure ensures stable growth which also attracts heavy investments for the state, writes Maheshwar Sahu
Infrastructure is the foundation for any industrial and inclusive socio-economic development. No country or a state can make holistic progress or attract foreign and national investments unless it offers quality infrastructure to support the growth. In other words, no business can survive if it is not supported by basic industrial as well as social and civic infrastructure. Gujarat is one of the few Indian states that have put this in the forefront.
Today, India is the worldÂ’s second fastest growing economy that requires better infrastructure to support the requirements and needs of its people and the industry. In spite of the world economic crisis, the country managed to maintain one of the highest GDP growth rates and proved its economic sustainability. India remains one of the most attractive investment destinations around the globe.
To create an adequate infrastructure in the country, the draft 12th Five Year Plan continues the thrust on accelerating the pace of investment in infrastructure and has projected an investment of about INR 56.32 lakh crore in infrastructure during the Plan period (2012-17).
Suitable planning
The state of Gujarat is established and recognised as a land of entrepreneurs with strong focus towards growth and development. The state has registered outstanding progress in all the infrastructure sectors including power, manufacturing, ports, roads, water supply, etc.
Over the period, Gujarat has created a world-class industrial and social infrastructure that makes it one of the most developed states in India. Creating new infrastructure and maintaining the existing infrastructure is an on-going and continuous process. Gujarat has been focusing more on spending on infrastructure development rather than giving subsidies and incentives to attract investments in the state. This has been the key enabler that provides not just multiplier benefits to investors, but is also critical for the sustainability of growth trajectory Gujarat. Gujarat has invested in well-planned and properly financed public infrastructure that helped bring vitality and direct growth to the benefit of the people from all walks of life.
Apart from strengthening the existing infrastructure in the state, what Gujarat has been able to achieve in infrastructure over the last decade has been exemplary. The state boasts of a road network of 137,617 kms, a railway network of 5,328 km, state-wide gas grid of over 2,800 kms, 17 airports and airstrips, including one international airport, 23 power plants, two LNG terminals, one major port and 41 non-major ports. The Government of Gujarat has envisioned the new paradigm for industrial growth of the state, involving integrated development of large areas like Special Investment Regions (SIRs), which is poised to transform the industrial scenario in the state. It is a unique initiative in the country. Gujarat became the first state in India to enact the SIR Act in 2009. SIRs are special regions dedicated for investments and holistic development of large areas. A total of 13 SIRs spread over an area of 3,600 sq kms are currently under various stages of development. Out of these, the two SIRs – Dholera SIR and PCPIR (Petroleum, Chemicals and Petro-Chemicals Investment Region) – are already on a fast-track of development.
BIG 2020
The Government of Gujarat has envisioned a future development and developed a “Blueprint for Infrastructure in Gujarat – BIG 2020”. It envisages an investment of INR 12 lakh crore across 19 infrastructure sectors, is an integrated plan for the state’s infrastructure development. The new vision comprises investments in various sectors like: Special Economic Regions, Industrial Nodes, Logistics Parks and SEZs within the Delhi Mumbai Industrial Corridor, industrial parks, roads, ports, railway, airports, urban infrastructure, water supply, tourism, etc. The biggest share of this budget will be for the power sector with INR 2.23 lakh crore.
In the next decade, various mega-projects will kick off to further accelerate growth of the state. Some of them include the Kalpasar water project; Ahmedabad-Gandhinagar Metro Rail project; Ahmedabad-Mumbai and Ahmedabad-Jamnagar High Speed Train Project (Bullet Trains), and the Gujarat International Finance-Tec City (GIFT) project.
Government initiatives
As far as improving industrial infrastructure is concerned, the government is providing financial assistance for upgrading both GIDC (Gujarat Industrial Development Corporation) and non-GIDC industrial estates. The government is offering financial assistance for developing new industrial estates for focus sectors. Some of the priority areas for development include providing efficient logistic services by improving road, rail, port and air connectivity to industrial estates; development of port infrastructure by expanding and upgrading ports and jetties owned by Gujarat Maritime Board (GMB) as well as private parties; further investment for improving hinterland connectivity etc.
Gujarat has succeeded in creating a world class infrastructure. The key to this success lies in progressive policies developed by the state. Gujarat is the only state, where the state government has framed policies for all key sectors such as industries, power, ports, IT etc. Gujarat has 55 SEZs covering an area of approximately 30,954 hectares.
Presently there are 16 SEZs which are in operation, covering an area of 17,295 hectares. These SEZs comprise of industries in several sectors such as apparels, pharma and biotechnology, engineering, IT, power, handicraft/artisan, gems and jewellery etc. Gujarat has been apt at making SEZs as attractive business centres. GujaratÂ’s SEZs have contributed 47 per cent to IndiaÂ’s SEZ exports during 2010-11.
Gujarat Shining
GujaratÂ’s commitment to the industries and infrastructure development can be illustrated by the famous TATA Nano plant. It is a hall mark project of efficient functioning of the Government of Gujarat. It is notable that the process of obtaining all the necessary clearances was completed in a record short time. Once a dusty area, Sanand has now become Detroit of India, with almost all the big carmakers from Maruti to Ford and General Motors having set up their shops there. The transformation of the small town of Sanand to the new global automotive hub tells India and the world a story of how world-class infrastructure has been enabling to bring in businesses from around the world and change the lives of people.
The Government of Gujarat has not only helped the big industries set up their plants but also provided ample infrastructure to auto ancillaries firms to set up their businesses. According to industry body ASSOCHAM, Gujarat has topped the list of states with the highest share of outstanding private sector investments (including both domestic and foreign private sectors) across India as of June 2012.
The State garnered an investment of INR 10.34 lakh crore, accounting for 12.5 per cent of the total outstanding private investment of INR 82 lakh crore. Bureaucratic efficiency, infrastructure facilities and ease of land acquisition influence the flow of private investments and the investment stats are a testament to the good business scenario in the state, which has been pioneering the industrial development for the last decade.
The Government of Gujarat has provided and strives to continue providing all-embracing support to create a business friendly regulatory environment that includes simplification of procedures, creation of Gujarat Investor Portal, investor support software, investment monitoring system, information bank and land bank.
To provide a focused platform to investment inflows, the Government of Gujarat has institutionalised a biennial event – Vibrant Gujarat Global InvestorsÂ’ Summit since 2003. The Summit is aimed at bringing together business leaders, investors, corporations, thought leaders, policy and opinion makers; the Summit serves as a perfect platform to understand and explore business opportunities in the State of Gujarat.
The Vibrant Gujarat Summit has become a model for economic success for many states. The sixth edition of Vibrant Gujarat Summit will be hosted in state capital of Gujarat, Gandhinagar, from 11 to 13 January, 2013.
We, at the Government of Gujarat, are committed to make our BIG 2020 vision a reality – to make Gujarat a globally preferred place to live in and to do business through accelerated, balanced, inclusive and sustainable growth driven by robust social, industrial and physical infrastructure. We are dedicated to see our land prosperous and flourishing, truly the Land of Vibrant Opportunities.
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