CDP Sanand

CITYDEVELOPMENTPLANSANAND20102015

PreparedBySanandNagarPalikawithTechnicalSupportfromCEPT,Ahmedabad


CentreforEnvironmentPlanningandTechnology Page2

Table of Contents 1. Introduction..........................................................................................................................................1

1.1. Approach and CDP development process.............................................................................1

1.2. City Development Plan for Sanand (2010-2015)...................................................................6

2. City Profile and Current Development Perspectives.....................................................................8

2.1. City Profile...................................................................................................................................8

2.2. Demographic profile.................................................................................................................10

2.3. Economy....................................................................................................................................15

3. Land use and Growth Dynamics....................................................................................................34

3.1. Background...............................................................................................................................34

3.2. Spatial Extents of Sanand city................................................................................................34

3.3. Land use Developments in 1997...........................................................................................35

3.4. Land use Plan Proposed in the Development Plan 2011..................................................35

3.5. Current Land Use Developments (Till 2009) in Sanand.....................................................37

3.6. Recent Developments in the Region and Its Impacts.........................................................38

3.7. Impact on Land Prices.............................................................................................................39

3.8. Population Growth and Projection.........................................................................................39

3.9. Issues.........................................................................................................................................40

3.10. Strategies...............................................................................................................................41

4. Environmental Services...................................................................................................................43

4.1. Water Supply.............................................................................................................................43

4.2. Sewerage...................................................................................................................................47

4.3. Storm Water Drainage.............................................................................................................48

4.4. Solid Waste...............................................................................................................................49

5. Traffic and Transportation...............................................................................................................53

5.1. Introduction................................................................................................................................53

5.2. Road Network...........................................................................................................................53

5.3. Rail..............................................................................................................................................54

5.4. Traffic.........................................................................................................................................54

5.5. Public Transport.......................................................................................................................56

5.6. Accident.....................................................................................................................................56



5.7. Current and proposed Projects..............................................................................................56

5.8. Major Issues..............................................................................................................................57

5.9. Strategy......................................................................................................................................57

6. Urban Poor and Housing.................................................................................................................59

6.1. Urban Poor in Sanand City.....................................................................................................59

6.2. Housing......................................................................................................................................60

7. Social Infrastructure.........................................................................................................................63

7.4. Educational Facilities...............................................................................................................63

7.5. Health Facilities........................................................................................................................65

7.6. Other Amenities........................................................................................................................68

7.7. Recreational Spaces................................................................................................................69

7.8. Status of crime:.........................................................................................................................70

7.9. Major Issues:.............................................................................................................................71

7.10. Strategies:.............................................................................................................................71

8. Environment Profile..........................................................................................................................73

8.1. Surface Water...........................................................................................................................73

8.2. Ground Water...........................................................................................................................74

8.3. Air Quality..................................................................................................................................75

8.4. Noise Pollution:.........................................................................................................................75

8.5. Issues.........................................................................................................................................75

8.6. Strategies...................................................................................................................................76

9. Disaster Management.....................................................................................................................77

9.1. Vulnerability...............................................................................................................................78

9.2. Manmade Disasters.................................................................................................................78

9.3. Preparedness............................................................................................................................78

9.4. Issues.........................................................................................................................................80

9.5. Strategy......................................................................................................................................80

10. Municipal Finance........................................................................................................................81

10.1. Assessment of revenue Account.......................................................................................81

10.2. Assessment of Capital Account.........................................................................................84

10.3. Issues and Recommendations...........................................................................................85

11. Urban Governance.......................................................................................................................88



11.1. Constitution and Functioning of the Municipality.............................................................88

11.2. Role of State Government Agencies.................................................................................90

11.3. Reforms.................................................................................................................................91

11.1. Manpower requirement at the ULB....................................................................................93

12. Development Perspective and Vision for the City...................................................................95

12.1. Stakeholder Consultation....................................................................................................95

12.2. SWOT Analysis.....................................................................................................................97

12.3. Vision for the city..................................................................................................................98

13. CIP for Sanand Nagar Palika...................................................................................................100

13.1. Institutionalizing the CIP Process....................................................................................100

13.2. CIP for Sanand Nagar Palika...........................................................................................101

14. Financial Operating Plan...........................................................................................................105



List of FiguresFigure11EvolutionofSatelliteTown..........................................................................................................3Figure12CityDevelopmentPlanPreparationProcess...............................................................................6Figure13CityDevelopmentPlanProcess...................................................................................................7Figure21LocationofSanandNagarPalikaintheRegion..........................................................................8Figure22LiteracyRateSanand.................................................................................................................12Figure23WorkParticipationinSanand....................................................................................................15Figure24WorkprofileofthepopulationinSanandTown.......................................................................15Figure25LandusepatternofSanandTalukain200304.........................................................................16Figure26AreaundercultivationforFoodandNonFoodcropinSanandTalukain200304..................17Figure27CropwiseareacultivatedinSanandTalukain200304............................................................17Figure28WorkParticipationandworkprofileofPopulationofAhmedabadCity...................................25Figure41WasteWatergenerated............................................................................................................47Figure42CompositionofWaste...............................................................................................................49Figure51Trafficcounts.............................................................................................................................55Figure52NumberofRegisteredAccidentsinSanandCity.......................................................................56Figure61HousingprovidedbyGHB..........................................................................................................62Figure62SinglepersonAccommodation,providedbyaRiceMillinitscampus.....................................62Figure71ReportedcasesofDiarrheaandMalariainSanandTaluka.......................................................68Figure72TotalNumberofcasesregisteredasIPCinSanand..................................................................70Figure81EncroachmentalongBhadretilake............................................................................................73Figure82Statusoflakes............................................................................................................................73Figure83GroundwaterQuality.................................................................................................................75Figure91EarthquakeandWindhazardmap............................................................................................77Figure131PrinciplesofPhasing..............................................................................................................100



List of Tables Table21DevelopmentofSanand..............................................................................................................10Table22AdministrativedivisionsinSanandNagarpalika.........................................................................11Table23PopulationGrowthinSanandNagarpalika(19512001)............................................................11Table24SexratioinSanandTown............................................................................................................12Table25ScheduledCaste/SchedulesTribePopulationofSanandTown................................................13Table26ComparisonofAhmedabadandSanand(2001).........................................................................13Table27MigrationinSanand1991to2001..............................................................................................14Table28NetMigrationinSanand.............................................................................................................14Table29RegisteredfactoriesandInvestmentinSanandTaluka(statusason200708).........................19Table210ProjectsCommissionedinSanandTalukaduringlastfouryears(IEMPart2)........................20Table211ProjectsProposedinSanandTaluka(IEMPart1)...................................................................21Table212SupplyofResidentialUnitsinSanandTown.............................................................................22Table213SWOTAnalysis...........................................................................................................................23Table214WorkingfactoriesandWorkersemployeddailyinAhmedabadCity.......................................26Table215IndustrywiseWorkingfactoriesandEmploymentinAhmedabadCityin2006......................26Table216ProjectsProposedinAhmedabadCityduringlastfouryears(IEMPart1).............................28Table217EmploymentinshopsandEstablishmentinAhmedabadCityin2006....................................29Table21PopulationgrowthofSanand.....................................................................................................34Table22LandusePatternin1997............................................................................................................35Table23LandUsePatternProposedinDevelopmentPlan2011.............................................................35Table24DetailsofDraftTownPlanningSchemesSanand.......................................................................36Table25ExistingLanduse2009................................................................................................................37Table26ComparisonofExistingLanduse1997and2009.......................................................................37Table27JantryratesinSanand.................................................................................................................39Table28CurrentpopulationofSanand.....................................................................................................40Table29AssumptionsforpopulationdensityandProjectionsfor2031..................................................40Table210PopulationProjections..............................................................................................................40Table31Waterdemand............................................................................................................................43Table32Proposeddistributionnetwork...................................................................................................44Table33%CompositionofWaste............................................................................................................49Table41DetailsofRoadNetwork.............................................................................................................53Table42TrainDetailsandtime.................................................................................................................54Table51SlumProfile.................................................................................................................................59Table52BasicAmenitiesDistributioninCity............................................................................................60Table53HousingPatternintheCity.........................................................................................................60Table54HousingProvidedbyGujaratHousingBoard(Constructedduring19952001).........................60Table55HousingProvidedbyGujaratRuralHousingBoard(Constructedduring199095)....................61Table56SupplyofResidentialUnitsinSanandTown...............................................................................61Table61EducationalFacilityinSanandexisting.......................................................................................63Table62EstimatesforEducationalFacilityrequirementsinSanand2031..............................................64



Table63HealthFacilitiesinSanandCity...................................................................................................65Table64ComparisonofexistingfacilitiesandUDPFINorms....................................................................66Table65EstimatesforHealthrequirementsinSanandin2031...............................................................66Table66CoverageofPHCsinSanandTaluka............................................................................................67Table67DiseasePatterninSanandTaluka...............................................................................................67Table68NumberofHouseholdsavailingservices....................................................................................68Table69NumberofHouseholdsavailingInfrastructureFacilitiesinSanand...........................................69Table610EstimatesforSocioCulturalfacilitiesrequirementsinSanandin2031...................................69Table611MajorLakesinSanand..............................................................................................................69Table612YearwiseNumberofRegisteredCasesofDifferentIPCCrimesinSanandCity.......................70Table613EstimatesforPolicestationandFireStationrequirementsinSanandin2031.......................71Table614SocialInfrastructureProjectproposed.....................................................................................72Table81HazardProfileSanand.................................................................................................................77Table82vulnerableschools......................................................................................................................78Table83CommunicationFacilitiesinSanand...........................................................................................79Table84PolicePersonnelinSanand.........................................................................................................79Table101SummarizedaccountsofSanandMunicipalityfrom200405to200809...............................81Table102SummarizedrevenueincomeofSanandMunicipalityfrom200405to200809....................82Table103SummarizedrevenueExpensesofSanandMunicipalityfrom200405to200809.................83Table104AssessmentofCapitalAccountofSanandMunicipalityfrom200405to200809.................84Table111FunctionsofDepartments........................................................................................................89Table112StaffingPatterninSanandNagarpalika....................................................................................90Table113ReformsundertakenbySanandNagarPalika...........................................................................91Table114StatusofReformsinSanand.....................................................................................................92Table115StatusofManpowerRequirementinSanand...........................................................................93Table131SummaryofInvestmentphasing............................................................................................101Table132InvestmentPhasingforPhase1..............................................................................................102Table133MeansofFinance....................................................................................................................103Table141EstimationofOperatingandMaintenanceLiabilityarisingfromtheCIPinvestments..........106Table142Statusofmunicipalfinance.....................................................................................................107



1. Introduction

Sanand is one of the fine examples demonstrating the positive and wide spread impact of urbanization of a megacity like Ahmedabad. Sanand is located at about 24 km from Ahmedabad city on the Ahmedabad-Viramgam Highway. The city is included under Ahmedabad Urban Development Authority (AUDA) jurisdictional area which is responsible for planning and development in the area.

Sanand has attained importance in recent times as it is in close proximity to the Delhi-Mumbai Freight Corridor and the adjoining Special Economic Zones (SEZ). Shifting of the eagerly awaited Tatas Nano Plant from Singur, West Bengal to Sanand, Gujarat has suddenly highlighted the vital location of this town with reference to industrial development. The Tata Groups industrial establishment is supposed to boost up the employment generation in this region.

1.1. Approach and CDP development process Prior Approach: A Growth Center in AUDA Area DP 1997

Sanand was looked at as one of the four Growth Centers (Kalol, Dehgam, Sanand and Mehmedabad) of AUDA. More emphasis was placed on industrial area development in the sanctioned plan so that potential employment opportunities are created and this in turn may attract rural population thereby reducing pressure of migration on Ahmedabad City. But till 2007-08, neither there were any major developments established, nor GIDC had put up any new industrial estates. The main cause attributed to this no or little development was the lack of promotion of industrial incentives in AUDA area as per strict enforcement of Government Policy. Thus the growth in population of these growth centers is also slow than as estimated by AUDA. As per the population projections of AUDA, the projected population of Sanand city in 2011 will be one lakh, whereas the current estimated population of the city is not more than fifty thousand.

New Approach: Planning of a Satellite Town

Sanand has been declared as a Satellite Town of Ahmedabad, in December 2009 by the Ministry of Urban Development, Government of India (GOI).

What is a Satellite Town?

The concept of satellite town has been emerged to help the metropolitan city in solving the human settlement and absorbs its industrial growth which put enormous pressure on



infrastructure and service delivery of metropolitan city. The Satellite city is a smaller municipality in the vicinity of metropolitan parent city and can be planned within the natural growth pattern of parent city. It is intended to stop urban sprawl, provide an alternate business center and also provide high speed transport linkages between the it and Parent City.

It has been observed that migration in the metropolitan city is owing to employment opportunities, trade opportunities and specialized services such as education, health, entertainment and recreation. The people residing in satellite town can use specialized services of metropolitan city situated in its vicinity through strong transport linkages. The satellite town/city is defined as follows:

A Satellite Town is a self-contained and limited in size, built in the vicinity of a large metropolitan city to house and employ those who would otherwise create a demand for expansion of the existing settlement in metropolitan city, but dependent on the parent-city to a certain extent for major and specialized services

The Satellite city differ from mere suburbs and subdivisions in that it has municipal governments distinct from that of the parent metropolitan city and employment bases sufficient to support its residential populations. The Satellite city also experience cross- commuting with parent metropolitan city.

It has been observed that development of Satellite Town/City requires following offering.

The Satellite town should offer adequate municipal services such as quality water supply, electricity, sewage treatment and residential townships etc.

The Satellite Town should offer superior quality social infrastructure such as schools, primary and secondary medical treatment and retail departmental stores.

Proximity of Metropolitan City and communication network.

Speedy and Low cost of commuting from Satellite city/Town to Parent Metropolitan City as access to tele- effective services such as universities and airports that only the parent city can offer. This would increase the mobility of people residing in satellite town/city.

It should have land resources, independent economy and also have strength to absorb the growth of Parent Metropolitan City.

Above factors led to development of Satellite Town/City which decongests the city centers of Parent Metropolitan city.



The three phases of development of Satellite town in Indian and Western countries context and evolution of model for development of satellite town/city are described in following exhibit.

Figure11EvolutionofSatelliteTown

Source: Author Analysis

As discussed in above exhibit, in the Indian context, often adjoining towns begin to acquire the character of the Satellite city. These towns face pressure of population and industrial growth. Thus required infrastructure needs to be identified, strengthened and developed. However Small town and ULBs are institutionally unable to cope with these demands owing to lack of revenue/ tax base, human resources and planning constrains and hence many a times Satellite Town is merged with Parent Metropolitan city.



Sanand Town should be developed in line with the Model 1 described in above exhibit as independent town having its own municipality otherwise this will put less pressure on Ahmedabad Municipal Corporation for service and infrastructure deliveries. However this demands higher capability of Municipality for service deliveries and executing large social infrastructure projects. This can be attained by institutional strengthening of Sanand Municipality.

As per the Guidelines for Scheme of Urban Infrastructure Development in Satellite Towns / Counter Magnets of Million plus Cities published by the Ministry of Urban Development, Government of India, Sanand is one of the eight Satellite Townships around the seven mega-cities (Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad and Ahmedabad).

The main objectives of this scheme are:

1 To develop urban infrastructure facilities such as transport, drinking water, sewerage, drainage and solid waste management, etc. at satellite towns/ counter magnets around million plus urban agglomerations (UAs) covered under Jawaharlal Nehru National Urban Renewal Mission (JnNURM) and to channelize their future growth so as to reduce pressure on million plus UAs.

2 To enhance the sustainability of urban infrastructure facilities by implementing reforms such as energy audit, water audit, introduction of cost effective technologies, capacity enhancement for improved operation and maintenance, etc.

3 To adopt innovative public-private partnerships models for development of satellite towns. 4 Earmarking 10-15% of housing sites for the urban poor in accordance with the National

Urban Housing and Habitat Policy, 2007. 5 To promote the following Urban Local Bodies (ULB) level reforms:

a) Adoption of modern, accrual based, double entry system of accounting b) Introduction of system of e-governance using IT applications, Geographical Information

system (GIS) and Management Information System (MIS) for various urban services and establishment of citizen facilitation centers.

c) Reform of property tax with use of GIS and arrangement for effective implementation so as to raise the collection efficiency to 85 percent.

d) Levy of user charges, with the objective that full cost of operation and maintenance is collected within seven years

e) Internal earmarking of budgets for basic services to the urban poor



f) Formulating bye-laws which shall incorporate provisions for disaster management, rainwater harvesting, reuse and recycle of waste water, barrier free environment and structural safety and shall also be in strict compliance with the National building Code.

g) Implementation of Public Disclosure Law h) Implementation of Community Participation Law

Also, it is noted that the towns may be planned for a population of 3-5 lakhs in case of million plus cities and 5-10 lakhs in case of mega-cities (4 million plus cities).

As per the above guidelines, planning of the satellite town shall be on the concept of continuity, compactness and self-containment. Each part of the township while being self-sufficient in itself should form an integral part of the town as a whole having clear functional linkages with the mother city and other urban centers in the respective region.

A City Development Plan is a comprehensive plan for the sustainable development of the city, with a strong focus on addressing prioritized problems, in line with a medium to long term vision for the future and supported by available financial resources.

A City Development Plan is a perspective of and a vision for the future development of a city. Essentially it addresses following questions:

Where are we now? Where do we want to go? What do we need to address on priority basis? What interventions do we make in order to attain the vision?



Define Vision / Mission statement

Direction of change and future Expectations,Prioritize Actions

Analysis of Existing situation (City Assessment Report) Analysis of Strengths, Weaknesses and Opportunities & Threats

Household Surveys Stakeholder Consultation (Household Survey and Ward wise consultation). Study of other sources that determine citizen's Response

City Investment Plan & Financing Strategy

The process of development of a city is dependent upon the industrial and business activities of the city, and the amount of activity it can secure from outside. Most of the cities suffer from inadequate civic amenities on one hand and inflexible sources of revenue on the other with the result that they find it difficult to absorb their growth without corresponding strain on the existing meager civic services. The civic services have thus tended to follow a declining curve in relation to the rate of growth of the urban economies.

1.2. City Development Plan for Sanand (2010-2015) The city development plan of Sanand takes a comprehensive review of the developments in the region especially the industrial developments such as Special Investment Regions. It is a learned fact that industrial developments gives a boost to the economic development of any region thus contribution towards increased migration. Hence, the existing situation analysis focuses on the regional connectivity and existing infrastructural services assessment and the future requirements. The CDP also focuses on balancing the environmental sustainability issues, green buildings and disaster mitigation aspects. The planning of the future services takes into account the local needs, norms and space standards flexible enough to meet the socio-economic, physical and environmental needs. Emphasis is given on rational and judicious use of scarce resources both in the form of land and fiscal resources. The City Development

Figure12CityDevelopmentPlanPreparationProcess



Plan of Sanand will have a vision for next 20 years and will focus on short term financial planning for five years.

Figure13CityDevelopmentPlanProcess

Structure of the Report

The report is presented in four sections-

First section talks about approach towards the planning process, city profile and current development perspectives for projected population of the city.

Second section gives the current situation assessment of all infrastructural services such as water, sewerage, storm water drainage, solid waste management, transportation and social infrastructure, etc.

Third section explores the existing governance practices of the Sanand Nagar Palika and arrives at a vision for development of the city.

The last section describes in detail the Municipal finances, city investment plans and financial operating plan for Sanand Nagar Palika.



2. City Profile and Current Development Perspectives

2.1. City Profile Sanand city is located on the south western side of Ahmedabad at a latitude of 225860" N and longitude of 722266" E. Sanad has been classified as a class three town (as per the census of India 2001) and is the taluka headquarter of Sanand taluka, situated in Ahmedabad district. Sanand Nagar Palika (SNP) boundary falls within the boundary of Ahmedabad Urban Development Authority (AUDA) and was classed as a growth centre of Ahmedabad before attaining the status of a satellite town in 2009. The following chapter describes the city profile and its characteristics.

8.2.1. Location and Connectivity

Sanand is 24 km South West of Ahmedabad city on the Ahmedabad Virangam State Highway No 17. The important urban centers near Sanand town are Bavla (18 kms) and Viramgam (38 kms). Bavla is growing industrial town known for its rapidly developing cotton ginning industry, rice milling and agricultural commodities market. The famous picnic spot Nalsarovar is located 42 kms south of town. Sarkhej, a development node on the periphery of Ahmedabad is located only 12 kms from Sanand on the route to Ahmedabad.

Figure21LocationofSanandNagarPalikaintheRegion



Apart from this Sanand is an important node in the region with Ahmedabad Viramgam State highway SH 17, Bavla - Sanand - Kadi State Highway 135, Sanand Nal sarovar Road, Ambli-Bopal-Ghuma-Sanand Road passing through it. Apart from this broad gauge Railway line also passes through this city, connecting it to Ahmedabad to the east and Viramgam towards west. The city is sandwiched between the newly proposed Sanand SIR and Changodar SIR (Refer Map 2.1). The Dedicated freight corridor (DFC) also passes through Sanand making the location lucrative to industrial development

8.2.2. Topography and Soil

Sanand belongs to the Gujarat Plains and hence the topography of the area is plain, Sanand town is majorly, a part of Sabarmati basin. The entire area under the Jurisdiction of the Nagar Palika is comprised of plain land with no hills or any other such features in the vicinity. The altitude of Sanand town varies from 6 to 10 meters above sea level. The higher area is Darbar gadha area, where as lower area is near Gadhiya pond. The general slope of the area is from North East to South - west direction. Geologically the area in and around Sanand Town is composed of soft soil, recent alluvium, clay kankar hard murrum and pobble etc. varies in thickness up to 6 to 10 mts. Beyond this depth, upper layer of the area consist of solid, fine sands , murrum and alluvium.

8.2.3. Climate

Sanand being located in the western part of India has a dry climate. Temperature varies from 43 C to 47 C in the summers and 5.3 C to 16 C in the winters. The predominant wind direction

in the city during morning and evenings is from the South-west direction for most of the year. The rainfall in the area is restricted to the monsoon from June to September. Average annual rainfall of Sanand city is 750 mm which is almost equal to Ahmedabad district average annual rainfall (Census of India, 2001). The minimum was in the year 1975 as 100 mm and the maximum rainfall was received in the year 1976 as 1510 mm.

8.2.4. Drainage

There are no major rivers that pass through Sanand. Owing to the topography and the general slope in the area from North - East to South West the water from the city finds its way from the local ponds in the town and drains off to Nalsarovar through natural drains. The city is dotted with lakes and ponds the most distinctive ones are Bhadreti Lake, Gadhiyu Lake and Lakshmana Lake.

8.2.5. Natural resources and Minerals

There is no forest area or minerals found in the District. The Nalsarovar Bird Santuary well known for migratory birds is located about 41 km south west of the city.



8.2.6. History

Sanand is an old historical town but no details concerning its origin are known apart from those available from story and legend.

There are many stories on how the name of Sanand was derived. As per one such legend Sanand is derived from Sanadi meaning alienated. The original Sanand village is believed to have been an alienated village under the Ahmedabad Sultan and it is from here the present day name is thought to be derived.

In more recent historical time Sanand was known to have been seat of the Vaghela rulers of the Koth house descended from the adopted son of King Karam Vaghela, the last of the Hindu ruler of Gujarat before the arrival of Allaudin Khilji as the master of region.

It is also believed that, during the Muslim rule in Gujarat, to entertain the King, Shah's gardens were built in Sanand and hence was called 'Shah Anand' which later on became Sanand.

The earliest written records available data back to 1872 during this period the town was apparently fairly well established and seems to have enjoyed some local importance in the region.

Table21DevelopmentofSanandPeriod Status May 15, 1885- March 31, 1963 Sanand Municipality April 1, 1963 Sanand Nagar Panchayat April 15, 1994 Sanand Nagarpalika

First meeting of Sanand Municipality was held on 15th May 1885 under the leadership of district collector who was also a president. Till 31st March 1963, the president was elected through public voting. After the implementation of Panchayati Raj from 1st April 1963 Sanand Municipality was converted to Nagar Panchayat under the 1961 Gujarat Adhiniyam. After 15th April 1994, it became Sanand Nagarpalika.

2.2. Demographic profile

2.2.1. Administrative Boundary

The Sanand Nagar Palika has a total area of 40.4 Sq.km. which is divided into 9 administrative wards; the panchayat of Gibpura is also included in this area (Refer Map 2.2). Till date, the gamtal area of Gibpura is governed by the Sanand Nagar Panchayat, which is also responsible for the provision of facilities such as roads, water supply, street light, drainage, solid waste management in the gamtal area.



The details of area and ward wise population are given in the table below- Table22AdministrativedivisionsinSanandNagarpalika

Ward No. Ward Area in Sq.Km. Population of Ward 1 5.61 2212 2 3.96 2583 3 0.50 2953 4 0.30 2703 5 8.61 2178

6 1.03 5198 7 5.99 3862 8 1.36 5102 9 7.67 5626

Gibpura (Rural)* 5.41 1270

Total 40.42 33,687

Source: Census, 2001 *Gibpura is governed by Sanand Nagar Panchayat

2.2.2. Existing Population and its Characteristics

As of 2001 Census of India, Sanand has population of 33,687 (including Gibpura). Decadal growth trend in the population indicates the sharp decline in the population growth rate after 1981 from 32.64% in 1971 to 18.33% in the decade of 1981, which further decreased to 14.28% in 1991. However, in the last decade the population has increased. The ward wise distribution of population has been shown in the table below, which shows the highest concentration of population in ward no. 9 and 6.The population in the age group 0-6 comprises almost 13 percent of the total population of Sanand town. Table23PopulationGrowthinSanandNagarpalika(19512001)Year Area in Sq

Km Total Population Male Female Decadal

change (%)

Density (person/sq km)

1951 1.29 10623 5472 5151 263 1961 1.29 14315 7462 6853 34.75 354 1971 40.42 18985 9949 9036 32.64 470 1981 40.42 22465 11664 10801 18.33 556 1991 40.42 25674 13504 12170 14.28 635 2001* 40.42 33687 17178 15239 31.21 802 Source: Census of India, 2001 *SNP including Gibpura



2.2.3. Population density

The average population density of the Sanand Municipality is 802 people per Sq. km. It shows the scarce distribution of the population. There are nine wards in the Sanand Municipality and population is not evenly distributed in all the wards. The figure shows that the major concentration of population is in the Gamtal area and near to major transport network in the ward number four, three, six and eight (Refer Map 2.3).

2.2.4. Sex Ratio and Literacy rate

As of 2001 Census of India, Sanand had a population of 33,687. The sex ratio (females per thousand males) is 891 and for the population under age 6, it is 790 which is decidedly alarming. Sanand has an average literacy rate of 81.7%, higher than

The state average of 81.4%: male literacy is 89.6%, and female literacy is 72.9%. The town has experienced continuous decline in the female population from the decade of 1981. This raised concerns of gender inequality.

As per the census, the average literacy rate in the town is 81.7 percent, while the male literacy rate is 89.6 percent and female literacy rate is 72.9 percent. The literacy rate of the city is higher than the state average i.e. 69%, as well as the literacy rate of Ahmedabad district i.e. 79.5%. This indicates the higher degree of awareness for education in urban areas of Sanand Taluka. (Refer map 2.4)

Table24SexratioinSanandTown

Source:CensusofIndia,2001

2.2.5. Scheduled Caste and Schedule Tribe Population

The Scheduled caste population in the Sanand town comprises 13.3 percent of the total population while Scheduled tribes have almost negligible proportion out of the total population in the town i.e. 0.2 percent.

Year Male Female Sex ratio

1951 5472 5151 941

1961 7462 6853 918

1971 9949 9036 908

1981 11664 10801 926

1991 13504 12170 901

2001 17812 15875 891

81.7 89.672.9

0

20

40

60

80

100

Total Male Female

Value

in%

Literacyrate(%)

Figure22 LiteracyRateSanand



Table25ScheduledCaste/SchedulesTribePopulationofSanandTown

Source:CensusofIndia,2001

A comparison of Sanand with the mother city Ahmedabad points out the similarities in terms of literacy rate especially the male literacy rate which is 89.6 % and 89.8% for Sanand and Ahmedabad respectively. The sex ratio of both the cities is also fairly same, 891 for Sanand and 885 for Ahmedabad in spite of the huge difference in the total population. The work participation rate of Sanand city is 33.1% and that of Ahmedabad city is 31.9%. The linkages of the two cities in terms of employments and transportation are further discussed in the report.

Table26ComparisonofAhmedabadandSanand(2001)Parameters Sanand City Ahmedabad City Total Population 32,417 42,20,048 Average Household Size 5.0 5.1 Sex Ratio 891 885 Sex Ratio (0-6 Years) 780 825 Sex Ratio (SC) 899 889 Sex Ratio (ST) 812 873 Literacy Rate (%) 81.7 83.9 Literacy Rate (Male) 89.6 89.8 Literacy Rate (Female) 72.9 77.3 Work Participation Rate (%) 33.1 31.9 Proportion of Main Workers (%) 31.6 30.4 Proportion of Marginal Workers (%) 1.4 1.5 Proportion of Non-Workers (%) 67 68.1 Work Participation Rate (%) (Male) 49.7 52.5 Work Participation Rate (%) (Female) 14.1 8.7 Source:CensusofIndia,2001

2.2.6. Migration

Migration is one of the determining factors for the growth of the city. It gives an insight on the type of growth and helps in determining the natural growth rate for the town and also accounting for the floating population. In case of Sanand no direct tables are available from the census and hence to analyze the migration information on births and deaths was collected from the Nagarpalika between 1991 and 2001 to estimate the natural growth of the town. The table

SC & ST Population SC

Population % share of Total population

ST population % share of Total population

Total 4322 13.3 58 0.2 Male 2046 7.0 32 0.10 Female 2046 6.3 26 0.08



below gives the net migration in case of Sanand. When we compare the results with the Ahmedabad Urban Agglomeration it is seen that the net migration in case Sanand is about 5.3% as compared to 34% in case of Ahmedabad urban agglomeration.

Table27MigrationinSanand1991to2001Year Total

Births Total Deaths Natural Increase Population Difference in

Population to Previous

yr

Net Migration

1991 722 173 549 25674 1992 721 159 562 26381 707 1451993 728 182 546 27107 726 1801994 775 180 595 27854 746 1511995 833 167 666 28621 767 1011996 796 173 623 29409 788 1651997 872 185 687 30219 810 1231998 757 180 577 31051 832 2551999 888 185 703 31906 855 1522000 894 202 692 32784 879 1872001 776 207 569 33687 903 334 Total (Net

Increase) 6220 Total (Net

Migration) 1793

Source:CensusofIndia,2001andSanandNagarPalika

Table28NetMigrationinSanand

Sanand

Population in 1991 25674Population in 2001 33687Growth Rate 1991-2001 31.2Difference (Population 1991-2001) 801310 Yrs (Natural GR) 6220Net Migration 1793Net Migration % (91-01) 5.3

Source:CensusofIndia,2001andSanandNagarPalika



1.1. Economy

1.1.1. Work Participation in Sanand

Sanand Towns 33% population is working and employed in different economic activities. The total non working population is 21714 as per census 2001.

Figure23WorkParticipationinSanand

Source:Census2001

The working population has been classified as main workers and marginal workers. Total 95% of Sanand Towns working population is main worker and remaining is marginal workers as per census 2001 which indicates majority of working population employed for more than 6 months in a year (presence of long term job).

Working population comprises 82% males and 18% female workers. This indicates that working population is dominated by male workers. Further 51% of male population and 13% of female population are employed in different economic activities.

Figure24WorkprofileofthepopulationinSanandTown

Economic activities Male Female Total % of the Total

Cultivators 311 32 343 3% Agricultural labourers 1100 699 1799 17% Workers in household industries 94 46 140 1% Other workers 7241 1180 8421 79% Total 8746 1957 10703 100% Source:Census2001

WorkingPopulation

MainWorkers

MarginalWorkers

NonWorkers

Female 1957 1749 208 13282

Male 8746 8490 256 8432

0

5000

10000

15000

20000

25000

Popu

lation



It can be observed from the above Exhibit that majority of working population employs in manufacturing and service sector. Only 3% of working population is engaged in cultivation on the land owned by him or held from Government and 17% of working population employs as agricultural laboures who worked on another persons agriculture land for wages indicating that small proportion of working population employs in primary sector of economy. Each sector of economy is discussed in brief further.

1.1.2. Sectors of the Economy

PRIMARY SECTOR

The area of Sanand Taluka is 78453 hectare. The land use pattern of 75972 hectare of area of Sanand Taluka is mentioned in following Figure.

Figure25LandusepatternofSanandTalukain200304

Source: District Statistical Handbook of Ahmedabad, 2007-08.

Net sown area is more than half of the land of Sanand Taluka. Double cropping land is around 22% of the net sown area and 14% of the total land area. The given portion of double cropping land suggests inadequate irrigation system compare to other districts of the state. Only 37315 hectare of net sown area is irrigated. Around 18250 hectare area is irrigated by Government Canal and remaining 19605 hectare area is irrigated by ponds and wells. This indicated need to increase coverage of Government Canal for irrigation in the Sanand Taluka. Further total 13215 hectares is unused land and 2100 hectares of land is barren land not suitable for agriculture. Such land can be used for residential, commercial and industrial purpose.

3% 7%2%

4%

17%

67%

Barrenlandnotsuitableforagriculture

LandusedinNonAgriculturepurpose

Unusedlandsuitableforagriculture

MeadowLand

OtherUnusedland

NetSownArea



Total 47946 hectares of area is under Food Crops and 14193 hectares of area is under non food crops cultivation as on 2003-04 in Sanand Taluka. As indicated in following Figure that Cereals and Cotton are major crops in Sanand Taluka.

Figure26AreaundercultivationforFoodandNonFoodcropinSanandTalukain200304


The main food grains produced in Sanand Taluka are Rice, Wheat and Bajra. Green gram and Pigeon Peace are major pulses and Til and Aranda are major oilseeds. Jira is the main spice produced in the Sanand Taluka. Following Figure shows mix of various crops in Sanand Taluka.

Figure27CropwiseareacultivatedinSanandTalukain200304


Cereals PulsesFruitsandVegetable

Spices Oildseeds Cotton Tobacco

Series1 43261 658 942 3085 1969 10257 955

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Areaun

derCu

ltivation(Hac.)

51%44%

5%

Rice Wheat Bajra

37%

4%44%

15%

Gram BlackGram GreenGram OtherPulses

26%

13%60%

1%

Til Mustered aranda others

FoodGrainPulses Oilseeds



Owing to higher cultivation of rice, Sanand Taluka comprises many rice mills. Further spread of Government Canal can increase the irrigation and considerable production of Food and Non Food crops can be attained. This can help to locate agro processing units such as rice mills, flour mills and textiles units. Further Sanand Taluka stands fourth in Ahmadabad District for milk production in 2007-08. Thus dairy and dairy product producing industries can be located in Sanand Taluka.

Thus it can be observed from the above discussion that primary sector in Sanand Taluka mainly comprise farming of food crops such as rice, wheat and Bajra and Non Food crops such as cotton. However there is need to increase the irrigation as only 47% of Sanad Taluks land is irrigated as on 2003-04. Further Sanand Taluka has further potential for locating dairy product producing industries.

SECONDARY SECTOR

The secondary sector of Sanand Town comprises total 40 small to medium scale rice mills and other approximately 7small chemical manufacturing units. Total investment of all such manufacturing units stood at Rs 200 crore and employs approximately 800 people1. Further the

Household industries are in nascent stage and employed only 140 people.

There is only one GIDC estates within the Municipal limit. This GIDC was established in 1984 as mini GIDC. Owing To lack of promotions and marketing of the estate, very few units were established. GIDC can reside 20 units, out of which presently there are only two units established in the GIDC. One pharma units is fully operational however metal unit is partially operational. Pharma unit of GIDC employs 10 people. Further GIDC lacks hard infrastructure such as internal roads. Lack of adequate internal infrastructure and efforts on promotion and marketing and availability of skilled manpower are area of concerns for Sanand GIDC.

Sanand Town does not have mineral resources and hence absence of mining activities. Thus it can be observed that rice mills are major contributor of secondary sector of Sanand Town.

However Sanand Taluka reside many manufacturing industries as compared to Sanand Town. Total numbers of registered factories and investment in plant and machineries in Sanand Taluka are described in following Table.

1Sanand Municipality, as on January 2010.



Table29RegisteredfactoriesandInvestmentinSanandTaluka(statusason200708)Name of Taluka No of registered

factories Investment in Plant and Machineries (Rs crore)

Employment

Sanand Taluka 153 13774 4205 Ahmedabad City 2066 51565 29499 Ahmedabad District 2348 72237 36367 Source: District Statistical Handbook of Ahmadabad District, 2007-08.

Following points can be inferred from above Table.

It can be observed from the following table that Sanand Taluka resides 7% of numbers of registered factories of Ahmadabad district. Its share in investment of Plant and Machineries stands at 17% in Ahmedabad district. This indicates strong industrial base in Sanand Taluka. Out of this, 40 manufacturing units are located in Sanand Town.

This strong industrial base in Sanand Taluka is owing to proximity of Metropolitan City Ahmedabad and strong connectivity with Kutch ports and south Saurashtra based ports. Further availability of land around the Sanand may have also contributed in establishing industrial base.

Owing to unavailability of skilled labors and worsening law and order environment of Sanand Town, many manufacturing units decided not to establish industrial units in Sanand GIDC or Sanand Town. These bottlenecks can be resolved by establishing standard quality international schools and colleges and maintaining law and order situation. Further promotion of GIDC estate as ideal investment destination by establishing quality internal hard infrastructure can help to attract the industrial units.

TERTIARY SECTOR

Sanand Town resides total 1027 retail shops registered under shops establishment act and employed total 1438 people2. The retails shops are of cloth, stationary, fruit and vegetable, food and grocery and other necessary trade and services. Owing to upcoming manufacturing units of Tata Motors for Nano cars, almost all leading private sector and public Banks have established their branches. Further Sanand Town does not have any significant tourism resources or any quality restaurants and hotels. There is also absence of recreation facilities such as Cinema, park, Good quality restaurants etc. There is also presence of informal sector in Sanand Town. Sanand Municipality has allocated separate space to hawkers after issuing license. Total 300 licenses issued and employing approximately 600 people. Thus service sector is dominated by retail trading shops followed by informal sector.

2 Sanand Nagar Palika and District Statistical Handbook of Ahmedabad district for year 2007-08.



Following steps can be taken to develop Service Sector in Sanand Town.

Strong industrial base in Sanand Taluka can help to locate hotels and restaurants, retail malls and banking and financial services. This can be attained by persuading Industries to set up their town ships in vicinity or in the Sanand Town. The people employed in Industries situated in Sanand Taluka can be encourage to house at Sanand Town by providing good quality social infrastructure.

Presently this is not a practice and industries such as Tata Motors and others are establishing Residential Townships independently in the vicinity of their units. This is owing to absence quality social infrastructure and worsening law and order situation.

Further affordable real estate can help to development of service sectors such as hotels and restaurants, retail malls and banking and financial services. Hence need to make real estate affordable in Sanand Town and its vicinity area.

Owing to presence of strong industrial base and upcoming DMIC in Sanand Taluka, logistic parks and related services has strong potential to be developed. This can be attained by developing logistic park and related services.

1.1.3. Emerging Projects around Sanand Town

Ahmedabad city accounted for 21.5% of factories in the state employing 18% of workers (2000). It houses Textiles, Chemical, Pharma and Engineering industries. Sanand Taluka has already started leveraging the growth of Ahmedabad. Being in the proximity of Ahmedabad and situated at strategic geographical location, Sanand Taluka attracted Rs 29144 crore of Investment in manufacturing sector. It accounted for 41% of Ahmedabad districts industrial investment during last four years. The majority of industries established in Sanand Taluka during last four years are textiles, Chemicals, Metal and Pharma. The capital investment in these industries in Sanand Taluka during last four years is mentioned in Exhibit below.

Table210ProjectsCommissionedinSanandTalukaduringlastfouryears(IEMPart2)Name of Industry No of units Investment (Rs

crore) Employment Rs crore of

Investment per employment

Textile 2 10706 1233 9 Chemical 2 2629 145 18 Metal 3 9829 519 19 Pharma 2 5980 571 10 Total 9 29144 2468 Source: District Industrial Center, Ahmedabad



Following points can be inferred from above Table and stake holder consultation.

It can be depicted from above Table that Textile and Metal industries accounted for highest capital investment of 37% and 34% respectively which is followed by Pharma industry (21% of total investment).

It can also be observed that Textiles and Pharma industries are employment intensive as compared to Chemical and Metal industries. Thus promoting the Pharma and Textile industrial base can generate higher employment in Sanand Taluka.

Further 49% of Ahmedabad districts investment proposed in Sanand Taluka. This is reflected from IEM (Part-1) filed by the different industries3. Total 12 projects projects proposed at an investment of Rs 3270 crore. The following Exhibit display industries wise IEM filed and investment proposed in Sanand Taluka.

Table211ProjectsProposedinSanandTaluka(IEMPart1)Name of Industry No of units Investment (Rs crore) Employment Textiles 4 312 1130 Chemical 2 32 159 Pharma 1 31 100 Electrical 2 106 412 Cement 1 275 90 Engineering 1 66 727 Auto 1 2448 3540 Total 12 3270 6158 Source: District Industrial Center, Ahmedabad

Following points can be inferred from the above table and discussions held with various stake holders;

Auto industries accounted for 74% of investment proposed in Sanand Taluka. Auto industries comprised Tata Motors Limiteds Nano plant. Establishment of this plant can attract Auto ancillaries industries in the Sanand Taluka.

Proximity of Ahmedabad city helped Sanand Taluka to attract the investment in Textile, chemical and Pharma companies as Ahmedabad city has been traditionally base of Textiles, chemical and pharma industries.

3DIC, Ahmedabad



Owing to quality road infrastructure connecting Sanand to Kutch ports, availability of land and strategic location catering Central Gujarat, North Gujarat and North Saurashtra markets attracted cement plant of Ambuja.

1.1.4. Real Estate Market of Sanand Town

Real estate market in the Sanand Town is dominated by increase supply of Housing units presently. The demand of Housing units generated mainly from specific income group who sold their land to industrial houses. Further perception of investor regarding strong future housing demand from employees of specific industrial houses also contributed in housing unit demand in Sanand Town. These two key facts provided impetus to growth of new residential townships. Presently five new residential schemes have been planned in Sanand Town and all are advanced stage of completion. All five residential township projects have been initiated by private developers. Three residential schemes have been planned on Sanand Viramgam Highway and remaining Two Residential schemes on Sanand- Sarakhej Highway. The present supply of residential units is presented in following Table.

Table212SupplyofResidentialUnitsinSanandTownParticular Average

supply per Residential Scheme

Total Supply of 5 Township projects

Area (Sq. yard) Prevailing Prices

Flats 100 to 125 units 500 to 625 units 80 to 125 Rs 10 lakh to 14 lakh

Tenament and Row House

60 units 300 units Row House (140 to 160 aq yard).

Tenament (185 to 200 sq yard)

Row House (Rs 18 lakh to 25 lakh). Tenament (Rs 25 lakh to 35 lakh)

Total 800 to 925 units Source: Stakeholder Consultation

The prices of housing units have been rising upward after the announcement of Tata Motors Limited to establish Nano Plant at Charodi village 13 km away from Sanand Town. Upcoming DMIC, Industrial Investment and SIR may drive demand of housing units in Sanand Town. However Law and Order Situation and poor social infrastructure/service delivery may hamper the demand of Housing Units.

Presently one commercial complex has been planned and completed. Some leading banks established their branch in Sanand after announcement of Nano plant. Owing to absence of any tourism resources, there is absence of demand for hotel and restaurant. However in future



industrial investment may increase the demand for commercial space for hotel, restaurant, retail malls and recreation facilities.

1.1.5. SWOT Analysis of Sanand Economy

The SWOT analysis of Sanand Economy is presented in following Table

Table213SWOTAnalysisSTRENGTHS WEAKNESSES

Economy 1. Multi cropping land producing rice, wheat

and Paddy. 2. Fourth largest Milk producer in Ahmedabd

District in 2007-08. 3. Very less slum population. Only 363 people

stayed in slum out of total population of 32419 indicating not significant increase in slum population.

4. Being only urban town of Sanand Taluka, it plays key role for Trade & Commerce, educational, health facilities.

5. Independent economy dependent on secondary (mainly rice mills) and Tertiary (trade& commerce) sector.

6. Proximity of main Urban Metropolitan City of Gujarat, Ahmedabad.

7. Availability of water resources and electricity.

Strategic Location and Transportation

network 1. Sanand is situated on State Highway 7

connected to NH leading to Kutch Ports. The SH-7 is being widened to four lane by next year.

2. BG rail line connecting Ahmedabad to Kutch ports and Saurashtra are passing through Sanand Town.

Social Infrastructure 1. Poor infrastructure and service deliveries

in schools and absence of science stream in school level education.

2. Absence of Graduation and Post-Graduation level institutes.

3. Adequate numbers of clinics and small hospitals but emergency treatment is availed only at Ahmedabad during evening and night hours owing to non availability of doctors during same time period.

Non Availability of skilled manpower Non availability of skilled readily employable manpower owing to Poor educational service deliveries in schools and absence of colleges.

Absence of Tourism and Recreation Facilities People of Town depended on Ahmedabad city for recreation needs. There is also absence of tourism facilities which leads to non development of hotels and restaurants.

Irrational land use Locations of APMC and Govt offices creating roadblocks and congestion in internal transportation of the town.

Transport infrastructure Lack of supporting transport infrastructure like truck/tractor terminal and parking lead to congestion along the road.

Mineral Resources Absence of Mineral resource leading non development of mineral based industries.



OPPORTUNITIES THREATS

1. Promote Agro processing industries and dairy industries in Sanand Town.

2. Improve irrigation network so more land can be irrigate which can increase the Agriculture produces.

3. Create qualified skilled manpower to motivate industries to recruit people from Sanand Town.

4. Create land bank to attract industries in the town and its vicinity area.

5. Promote Exim based industries as to get advantage of Quality Transportation Network.

6. Promote Auto ancillaries industries. 7. Promote industries situated in Ahmedabad

to get benefit of its proximity to Ahmedabad.

8. Promote GIDC as ideal investment destination to attract the industries in the Town

9. Promote logistic parks and warehouse based industries to realize the strength of being located on strategic location.

10. Promote recreation facilities such as Cinema, quality hotel and restaurants and social infrastructure so that employee of industries located nearby can be location in the Town. This would provide impetus to service sector and this would increase employment.

1. Institutional strengthening of urban local body is required for urban service deliveries.

2. Continue upward land prices may pose threat for development of Service Industries and recreation facilities.

3. Worsening law and order situation will impact on overall development of Town.

4. Haphazard growth of town may lead to poor quality of transportation and unban facilities.

5. Waste water if not treated can have an adverse effect on Nal Sarovar Bird Santuary.

1.1.6. Strategies for Leveraging Growth of Ahmedabad

The discussions in above section analyses the economy of Sanand which has been declared satellite town of Ahmedabad. As discussed Satellite Town aimed to stop the urban sprawl, provide an alternate business center by absorbing the growth of parent Metropolitan City. It is required to analyze the Economy of Ahmedabad City to assess its sectoral growth pattern. The growth pattern of economy of Ahmedabad city has been analysed as follows.

ECONOMY OF AHMEDABAD

Ahmedabad city assume importance in the Gujarat Economy owing to its contribution and large concentration of economic activities. In 1995, with 7% of states population, Ahmedabad contributed 10 17 % of state income4.

4CityDevelopmentPlanofAhmedabadCity.



Analysis of occupation pattern of Ahmedabad in 1971 and 1991 indicates that economy of the city has been gradually shifting from secondary to tertiary sector absorbing 56 percent of the total main workers of the city. During this period the share of secondary sector has fallen from 50 % to 42%. Following Exhibit specifies the work participation and working profile of population of Ahmedabad city.

Figure28WorkParticipationandworkprofileofPopulationofAhmedabadCity

Source: Census 2001

Following points can be inferred from above Figure.

The work participation rate of Ahmedabad is 32% as compared to 33% of Sanand Town and Gujarat State5.

Total 95% of Ahmedabad Citys population is main workers and remaining is marginal workers. This indicates majority of working population employed for more than 6 months in a year.

Working population comprised 87% males and 13% female workers. This indicates that working population is dominated by male workers.

97% of working population employed in manufacturing and service sector. Only 0.29% of working populations is engaged in Agricultural and remaining 3.14% working population engaged in Household industries. Hence it reflected that economy of Ahmedabad City mainly depends on secondary and tertiary sector.

Manufacturing Sector

5Census2001

Economic activities Male Female Total

% of the Total

Cultivators 1049 380 1429 0.13%Agriculturallabourers 1259 625 1884 0.17%

Workers inhouseholdindustries 15224 20035 35259 3.14%

Other workers 961384 124552 1085936 96.57%

Total 978916 145592 1124508 100.00%

WorkingPopulation

MainWorkersMaginalWorkers

NonWorkers

Female 145592 118589 27003 888333

Male 978916 952422 26494 1507244

0

500000

1000000

1500000

2000000

2500000

3000000

Popu

lation

WorkParticipation inAhmedabadCity(AMClimit) WorkProfileofPopulationofAhmedabadCity



Following Table specifies details of the number of working factories and workers employed daily Ahmedabad city from 1965 to 2003.

Table214WorkingfactoriesandWorkersemployeddailyinAhmedabadCityYear No of working

factories Average No of workers employed daily in working factories

Workers per Factory

1981 2207 184856 84 1987 2110 129759 61 1999 4271 157568 37 2000 4243 152933 36 2001 4415 157486 36 2002 4689 168700 36 2003(P) 4859 175728 36 2004(P) 5100 183092 36 2005(P) 5236 197712 38 2006(P) 5482 208078 38 Source: Office of Chief Inspector of Factories in Ahmedabad. Note :(P) is provisional figures

Following points can be inferred from above Exhibit.

Ahmedabad City accounts for 35% of factories in state and employing 21% factory workers of the state in 2004-056.

Workers per factory have declined from 84 workers in 1981 to 61 in 1987 and to 38 in 2006 indicating increased atomization.

The number of workers employed in registered factories has remained more or less stagnant in the city for last eight years. This is in conjunction with the trends at the state level. The numbers of jobs vary between 1.84 lakh to 2.0 lakh jobs.

Growth in numbers of factories established during last seven years has remained 3.7%.

Industry wise numbers of working factories and employment pattern is displayed in following Exhibit

Table215IndustrywiseWorkingfactoriesandEmploymentinAhmedabadCityin2006Industry Type No of working

factories Employment % of Total employment

in factories

Agri processing 14 288 0.1% Metallurgy 1208 35780 17.2% Food and Beverages 324 17853 8.6% Textile 700 48702 23.4%

6StatisticaloutlineofAhmedabadCity200607andIndustriesCensusofGujaratState200405



Industry Type No of working factories

Employment % of Total employment in factories

Wooden 259 4041 1.9% Paper 93 2348 1.1% Printing 149 3603 1.7% Leather 10 148 0.1% Chemical &Petro Chemical

1116 33242 16.0%

Engineering products 788 23613 11.3% Electrical and Electronics 132 5530 2.7% Tobacco products 8 181 0.1% mfg. Of non Metallic mineral product

164 7651 3.7%

Rubber and Plastic 212 4139 2.0% Mfg of Heavy vehicle and transport equipments

64 3450 1.7%

Electricity, gas and hot water supply

10 7270 3.5%

Trade related 110 6979 3.4% Other Miscellaneous 121 3260 1.6% Total 5482 208078 100.0% Source: Office of Chief Inspector of Factories in Ahmedabad.

There are around 5482 factories in Ahmedabad City, of which metallurgy industry has largest share (22%), followed by Chemical and Petrochemical industries (20%), Engineering products (14%) and Textiles industry (13%).

The employment is the highest in textile industries (23.4%) followed by metallurgy (17.2%), chemical and petrochemical (16%) and engineering products (11.3%).

Though the number of metallurgy and chemical industries is considerable higher in numbers, the employment is much lower.

Total of 246 new factories established in 2006 as compared to 2005, of which Chemical and Petrochemical industries has higher share (19%) , followed by metallurgy (18%) , engineering (16%) and Textiles industries (14%).

There are four GIDC estates within the Municipal Limits: Vatva, Odhav, Naroda and Behrampura and Apparel Park. In all the four estates, almost the entire area has been developed. The number of functioning units is highest in Vatwa and so is the employment. However, the investment in Naroda industrial estate is the highest7. City also resides large units of Small scale industries.

7CityDevelopmentplan,Ahmedabad



Further it is observed from the Exhibit below that there are 27 industrial units proposed to be established. Out of 27 industrial units, Textiles industries has largest share (8 units) followed by Printing (4 units) and Dairy (3 units) industries.

Table216ProjectsProposedinAhmedabadCityduringlastfouryears(IEMPart1)Name of Industry No of units Investment (Rs crore) Proposed

Employment Textiles 8 220 869 Dairy 3 53 221 Metal 1 25 118 Dying and printing 4 57 1112 Synthetic Organic Dyes 1 13 20 Power Generation 1 209 Effluent Treatment Facilities 2 193 46 Distribution of natural gas 1 600 250 Clinical research 1 117 425 machines and ball bearings 2 82 436 Ready mix Concrete 1 20 66 Pipe 1 25 250 Indusrial Park 1 290 30000 Total 27 1904 33813 Source: District Industrial Center, Ahmedabad

Ahmedabad districts 28% of investment proposed in Ahmedabad city, which is less compared to Sanand Taluka (49%), However 56% of districts employment proposed in Ahmedabad city. The highest employment share is owing to largest employment share proposed in Industrial Park. The nature of the industries proposed to be established in this industrial park is not known.

It is also observed that total 17 Textiles units proposed to be established in Ahmedabad district, of which Ahmedabad City has highest share (8 units) followed by Sanand Taluka (4 units). Hence Sanand Taluka has already attracted investment in Textiles and Chemical industries.

Real Estate Sector

Ahmedabad district alone comprised 38% of stamp duty collection from sale of property indicating strong demand of housing and commercial properties in Ahmedabad district. Stamp duty collection data in 2009-10 indicates that properties worth of Rs 25000 crore was traded in Ahmedabad8. The stamp duty collection from the sale of property rose by 27% to Rs 780 crore

8TheapplicablestampdutyrateintheGujaratis5.9%.



in 2010 from Rs 613 crore in 2008-09. This may be because of increased industrial and service sector investment in the state. This has led to increase in demand of housing units.

However Ahmadabads commercial realty will experience a supply-surge of 3.6 mn sq ft in 2010- 11 against the estimated demand of 2.5 mn sq ft. The oversupply will stabilize the value of commercial property9. The commercial realty in Ahmedabad is being led primarily by sectors such as banking, financial services and insurance (BFSI); telecom; pharma; and textile.

Owing to strong growth in Real estate sector, it employs considerable numbers of people in Ahmedabad and it will continue to generate employment in future. Further prices of real estate has been increased at unprecedented pace in Ahmedabad which may make real estate less affordable to house low to medium income group people in future.

Service Sector

Ahmedabad is a key trade center of Gujarat and plays a strong and significant role in providing commercial resources and market access for trade and commerce related businesses. This has led to development of mercantile corporation and associations. It is observed from the exhibit below that retails stores, business enterprises and recreation facilities alone employs 3.64 lakh people as compared to manufacturing sector employing 2.0 lakh people.

Table217EmploymentinshopsandEstablishmentinAhmedabadCityin2006Retail stores and other recreation facilities

2004 2006

No of units Employment No of units Employment Shops 322418 120836 328763 124837 Business Enterprise 84525 161089 103989 215061 Resident Hotels 547 4119 621 4302 Restaurants 4931 17223 5186 19193 Cinemas 70 1109 74 1122 Total 412491 304376 438633 364515 Source: Shops and Establishment Department, Ahmedabad

Being key trade center of Gujarat State, Citys retail shops and business enterprise such as trading firms and financial institutions employs 3.39 lakh working population. Ahmedabad city is also boats of recreation facilities such as restaurants, Cinemas and hotels and employs 24000 people.

Total numbers of retail and other recreation facilities increased at 3.4% however employment increased at 10%.

9CRISILRealitysectorreportforAhmedabadCity



Business Enterprises becomes highest contributor in employment generation. The employment generation has been shift from Shops to Business Enterprises.

The city is also turning out to be the leading retail destinations of India as a result of the malls and multiplexes coming up occupying an area of more than 5 million sq ft. The city has also many ancient monuments and reaches cultural tradition which attracts domestic and foreign tourist. This has led to development of hotels and restaurants. Further citys education and industrial institutions have attracted students and young skilled workers.

Owing to lower real estate prices compared to other Tier -1 and availability of large pool of graduates attracted many leading IT/ITES companies to the Ahmedabad and Gandhinagar. As a result, there are nine IT/ITES, SEZ proposed in vicinity of Ahmedabad.

Key Drivers of Ahmadabads Economy

Rich Industrial base of Textiles, Chemical including Pharma and Engineering industries.

Major trade destination owing to strong industrial base.

Tourist Destination owing to presence of many heritage monuments, cultural festivals and recreation facilities such as multiplexes etc.

Presence of Prominent Educational Institutes

Excellent Transport Infrastructure such as Roads, Rail, Domestic and International airport facilitating connectivity with economic drivers such as port, prominence APMC , Tourism places, other urban and industrial cities/regions of country.

Better Urban Infrastructure such as water supply, electricity supply, and urban transport projects such as BRTS.

Increased supply of Housing Units.

Better Social Infrastructure such as schools, graduation and post graduation level colleges producing skilled manpower and health care facilities such as hospitals, clininic etc.

The proposed Delhi Mumbai Industrial Corridor (DMIC), Dholera (Special Investment Region) and Gujarat International Finance Tech-city (GIFT) would fuel the growth of industrial and service sector respectively.



Economic Growth Pattern of Ahmedabad

Manufacturing: Emergence of Investment in industries such as Chemical (including pharma) and Petrochemical industries, metallurgy, engineering and Textiles industries. Further Investment in new area such as Dairy industries, clinical research and construction activities has emerged.

Real Estate: Impetus to growth of real estate owing to growth in housing demand and commercial properties. Prestigious projects such as Sabarmati Riverfront Development, Kankaria lake Development, and BRTS would further provide impetus to real estate.

Service Sector: Emergence of business enterprises as highest contributor in terms of employment and numbers. This is owing growth in banking and financial services, trade and tourism related services.

Proposed DMIC and GIFT would fuel the manufacturing and service sector such as financial services, IT/ITES and retail malls.

1.1.7. STRETEGY FOR LEVERAGING GROWTH OF AHMEDABAD IN SANAND

Strengthening Social Infrastructure and Service Deliveries: Better social infrastructure offering shall be the prerequisite condition for development of Satellite Town. As discussed earlier the concept of satellite town evolved to decongest the metropolitan town by reducing urban sprawl and providing alternate business center. It is observed that people expects social infrastructure such as schools and primary and secondary clinics/hospital close to their residential facilities. However generally people are ready to travel at longer distance for post graduation and tertiary health care. Sanand Town lacks quality educational institutes and emergency health care services at night. In spite of being a Taluka Place, its schools do not offer science stream and does not have any colleges. By improving Better Social infrastructure in terms of educational institutes and health care facilities , Sanand can be positioned to attract industrial houses to establish their town ships and able to produce skilled manpower. This can help to shift the Housing demand to Sanand Town and reduces the burden and prices of Housing units in Ahmedabad. Better social infrastructure played key role in development of Gurgaon.

Strengthening Urban Transport Infrastructure: It is observed that People are ready to be located at a distance if efficient and low cost urban transit system is provided. Presently 10% of working population of Sanand Commuting to Ahmedabad for



employment purpose and Students are commuting to Ahmedabad for availing educational services. All such people use either their private vehicle or GSRTC buses. There is no any urban transit system connecting both cities. The People commuting to Ahmedabad for availing specialized services such as education and recreation would likely to be increased once industrial house establish their residential townships and vice versa can also happen given the situation in which Sanand can provide employment of people of Ahmedabad.

Increase spread of Government Canal for Irrigation: As discussed in the Economy section that only 49% of Sanand Talukas area and 73% of net sown area is irrigated. Out which almost half of the net sown area irrigated by Ponds and wells indicating need to increase coverage of Govt. canal. The land in Sanand Taluka is very fertile and increase irrigation can reap higher food grains in the Taluka. The spread of Government canal can be increased to take the higher land area under the irrigation.

Creation of Land Bank for Industrial, Commercial and Residential purpose. Availability of cheap and adequate land is required to attract the investment. Creation of Land Bank for Industrial, Commercial and Residential purpose would help to attract the invest in all such segment which helps to realize the investment in hassle free environment.

Further the service sector such as IT/ITES, Banking and Financial Services and retail malls are employment intensive industries are requires quality real estate. The cheap rental of office space along with availability of skilled manpower would help to attract the service sector industries. Creation of large land bank would help to lower the real estate prices and efficient urban transport with Ahmedabad would help to ease in commuting and hence skilled manpower from the surrounding area can be made available.

Promotion of GIDC

Sanand GIDC can reside 20 units, of which presently only two units has been established in the GIDC. By establishing better internal hard infrastructure, GIDC should be promoted as suitable investment destination. This would help to locate the MSME (Micro Small and Medium Size Enterprises) of the Textiles and chemical industries.

Promotions of Industries and positioned Sanand as Logistic Hub to leverage the development of DMIC (Delhi Mumbai Industrial Corridor). It is observed from the



upcoming investme

CDP Sanand

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Transcript of CDP Sanand