June 2010 | iNDEXTb Issue 5

Gujarat
The Global Business Hub
From the Desk Shri Saurabhbhai Patel
“What is the best destination for my investments and business” is Minister of State for Civil Aviation, Cottage
one of the most crucial questions facing business leaders – the Industries, Salt Industries, Printing &
Stationary (Independent Charge)
decision makes or mars the growth of their business enterprise. What Industries, Mines, Minerals, Planning,
is more important is the fact that with changing market dynamics Finance, Energy and Petrochemicals
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 Contents
destination, the next major challenge is to find out which is the best
investment destination in India, and the global business leaders have FROM THE DESK 1
found their answer in Gujarat. The most attractive investment Message from the Minister of
destination in the country and the growth engine of India! State - Industries, Government of
The investment climate and industry friendly policies of Gujarat got re- Gujarat
affirmed when the Who’s Who of the Indian business community
joined the global investors in January 2009 during Vibrant Gujarat GUJARAT UPDATE 2
Global Investors’ Summit at Ahmedabad and signed Memorandum of Gujarat News
Understanding expressing their desire to invest over Rs. 12,00,000
crore (240 billion USD) through over 8,500 projects. INTERNATIONAL
Major rounds of green revolutions for improving productivity in the COLLABORATION 11
agriculture sector made Gujarati farmers and villages prosperous. Co- International Delegations to
operatives and white revolution empowered Gujarati women and Gujarat
provided a strong backbone to rural Gujarat. Inter-linking of rivers
took waters of Narmada to every nook and corner of Gujarat, making FOCAL POINT 13
villages self sufficient in their drinking water needs. Impeccable Gujarat to be power mall of India
by the year 2020
infrastructure and proactive industrial policies have made Gujarat a
backbone of industrial growth of the country.
EVENT CALENDAR 16
Through its rich culture, deep rooted heritage and colorful vibrancy,
Highlights of the Events in May
Gujarat has achieved a status where everyone looks at the State with and Upcoming Events
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.
 2

Gujarat Update
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
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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

4
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.
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
5
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

6 agreed formula.
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
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.
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,
7
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.

8 state is emerging as a major gladiator. Armed
"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
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

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
9
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
 10
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.
He was speaking at a seminar on ‘Emerging
11
Opportunities in the Defence Sector and
Japanese companies to develop eco-friendly
Emerging Areas for the Private Sector’ in
townships (22/04/2010)
Ahmedabad.
A number of large Japanese companies have
Although Gujarat has a sizeable presence of
evinced interest in developing eco-friendly
manufacturing units, none of them cater to the
smart townships in the Delhi-Mumbai Industrial
defence sector. At present, 70% of India’s
Corridor (DMIC) influence area in Gujarat. “Four
defence requirements are met through imports.
locations have already been identified. There
But a latest policy aims to reverse this trend and
are plans to develop
make the country self-reliant
Dahej and Changodar
in defence manufacture.
in the first phase. The
other two townships
State Energy Minister Shri
may come up near
Saurabh Patel said the
Dholera and Sanand
government and
in the second phase,”
entrepreneurs in Gujarat are
said GIDC vice-
very keen on exploring the
chairman and
possibilities for setting up
managing director,
joint ventures with overseas
Mr. Arvind Agarwal.
companies supplying defence equipment to
India by way of capital and technology inflows.
While Hitachi group plans to develop a green
township near Dahej, Mitsubishi group is set to
“We are ready to support the Ministry of
create a modern township at Changodar. “A
Defence. We can even have an SEZ exclusively
team from Mitsubishi had visited Dholera and
for defence component manufacturing in the
Sanand recently. They are keen to bring
state. We are formulating a new policy on
Japanese experience to the state,” said Mr.
defence production,” he said.
Agarwal.
Mr. Agarwal added that Gujarat-based
Other Japanese companies including Itochu
companies are manufacturing a lot of
Corporation (water treatment, solar power),
components for the Indian Navy. For instance,
Kyocera (solar panel), Tokyo Electric Power Co
Elecon, a Vadodara-based company, has been
(smart grid), Hyflux (water treatment) and
making gearboxes for the Navy.
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,
 12 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.
Focal Point 13
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 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
Gujarat has an existing policy or a (NPCIL) and will have the distinction of being the first
policy on the anvil for all sources of indigenous pressurized heavy water reactor-based
energy – coal, lignite, hydro, geo power plant in India.
thermal, ocean thermal, wind, At Mithi Virdi in Bhavnagar district, NPCIL is
nuclear, solar PV, solar thermal, considering to set up six nuclear reactors of 1,000
bio-mass, tidal wave etc. MW. The site has been finalized and other formalities
Gujarat has been faring well on the are underway for setting up the plant here. This plant
energy front as the State has will fetch-in investments of Rs. 60,000 crore in the
attracted a large number of private region.
players in the sector. The total A massive coal-fired Ultra Mega Power Project (UMPP)
installed capacity of the State as on by Tata Power Ltd is coming up with total power
generation capacity of 4,000 MW at a cost of around
October 2009 was 11,636 MW –
Rs.20,000 crore in Kutch. Another UMPP has been
sanctioned for Gujarat with a generation capacity of
6,107 MW by Gujarat State
4,000 MW, which will be constructed near Dholavira,
Electricity Corporation Ltd
where an SEZ is coming up.
(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,
7 May 2010: Honourable Minister of State for Energy, which is poised to grow at a rate of 10%
Industries and Finance, Shri Saurabh Patel said that every year. GUVNL or Gujarat Energy
two 1,000 MW gas-based power projects will be set Ministry would be able to supply cheap,
up in the state. affordable, uninterrupted, readily
available electrical power to future buyers
He said Delhi Mumbai Industrial Corridor
of private or public sector companies or any
Development Corporation (DMICDC) will set up the
power deprived states of India. The reasons
Rs 8,000 crore gas-based power projects.
for the anticipated major share of Gujarat in
"State government will provide land, water and power pie are –
other facilities to DMICDC for setting up of both these
projects for which sites are yet to be finalized," Mr.
Patel said.
 Smartly developed power grid - Gujarat is the only
14
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 Nuclear Kakrapar, Surat 440 MW 1840 MW in five
Corporation India years
Ltd. (NPCIL)
NPCIL Nuclear Mithi Virdi, -- 6000 MW in three
Bhavanagar years
Tata Power UMPP Coal-Fired Dholavira ---- 4000 MW in four
(Ultra Mega Power years
Project)
Private Wind Distributed 1184.5 MW 4000 MW in five
years
Private Bio-mass Distributed ---- 1000 MW in five
years
 15
Private Solar (PV Distributed ---- 716 MW in two years
and
thermal)
NTPC Solar Distributed ---- 1000 MW in four
Thermal years
Private Tidal Wave Kutchh -- 100 MW
Tata Power Geo thermal Amreli --- 5 MW

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."
 16 Events in May 2010

Contact Us Opportunities & Challenges in Mineral and Mining Sector

A Seminar on “Opportunities & Challenges in Mineral and
Industrial Extension Bureau Mining Sector” was organized in Ahmedabad on 21 May 2010
Block No 18 by CII and Gujarat Mineral Development Corporation (GMDC).
2nd Floor, Udyog Bhavan It was inaugurated by Mr. V. S. Gadhvi, IAS, Managing Director
Sector 11, Gandhinagar -
382010 of GMDC who informed the audience that 33 major and 17
Gujarat, India minor minerals were being mined in Gujarat.
+91 79 232 41663
+91 79 232 56592 Mr. Maheshwar Sahu, IAS, Principal Secretary - Industries and
+91 79 232 50492 Mines Department, stated the objective of the Seminar was to
+91 79 232 50493
Fax: +91 79 232 50490
identify the challenges in the sector and to recommend steps
indextb@indextb.com for meeting them. "Gujarat is a geologically blessed State. In
the country, the State is in a leading position in major-mineral
Find us on the Web: production value (including oil and natural gas). It ranks first in
www.indextb.com production of fluorspar and silica sand, second in bauxite,
www.vibrantgujarat.com
lignite, fireclay and clay, third in quartz & ball clay and fourth
in limestone," informed Mr. Sahu.

iNDEXTb “With state of the art infrastructure facilities, equipped with a

Industrial Extension Bureau modern technology, Kutch can be developed as a modern
(A GOVT. OF GUJARAT ORGANISATION) version of Jamshedpur," commented the Director of Jaypee
ISO 9001:2000 CERTIFIED
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

Knowledge Partner
vibrant.gujarat.2011@in.pwc.com

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