Summit on e-Goverance Gujarat Vibrant

16th March 2014 –

15th April 2014

Inside this issue

Focal Point : “Water Management in Gujarat”

Gujarat Updates : Investment Plans/ Initiatives

Events Calendar

Explore Gujarat : “Serene Beaches of Gujarat”

Contact Us

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Fact File

• Sardar Sarovar Dam, on completion, will be world's second largest concrete gravity dam (by volume) and will have world's third highest spillway discharging capacity

• Gujarat is the first state in India to interlink 20 rivers

• Water and Sanitation Management Organization's (WASMO) participatory distribution system for community water management, is an UNO award winning initiative

Since the beginning of time, water resources have been critical to the development of mankind,with almost all civilizations, such as Ancient Egypt, Indus Valley, etc. being established on thebanks of famous rivers all across the globe. Even today, water resources continue to play acritical role in the growth of agriculture, industries, human resources; and every associatedeconomic activity. The occasion of World Water Day celebrated on 22nd March, makes it all themore an apt time for me to be associated with this edition of the Vibrant Gujarat newsletter.

Government of Gujarat has implemented a 5C model to approach water management relatedissues holistically. This all-encompassing strategic framework, i.e., 5Cs includes: Collect RiverWater, Connect Rivers, Channelize Water, Control Local Water & Community Participation. Alongwith strategic direction, the State Government is taking into consideration the operational sideof the coin by implementing groundbreaking schemes and projects such as the Water SupplyGrid, Sujalam Suphalam Yojana, SAUNI Yojana and the Interlinking of Rivers across the State.

The multi-purpose interstate Sardar Sarovar Project on the Narmada River has proved to be aboon for Gujarat and has allowed the entire state to reap the benefits of water from the river.Upon completion, the Sardar Sarovar dam would provide benefits to Gujarat in the areas ofirrigation, power, drinking water supply, flood protection, wild life protection and so on.

In addition to water resources management, the State Government also actively works in theareas of sanitation, water treatment, waste water recycling and for an effective watermanagement which helps in minimizing water losses and maximizes utilization. The multitudeof projects and schemes being undertaken in Gujarat for water management are summarized inthis edition of the newsletter. I am sure that you will find the newsletter an interesting,enriching and informative read.

From The Desk

Dr. J N Singh, IASManaging Director

Sardar Sarovar Narmada Nigam Limited (SSNNL)Government of Gujarat, Gandhinagar

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Water Management in Gujarat

In a state like Gujarat, with such a multi faceted, blooming economic scenario, every sector and almost every business in these sectors has a water demand that grows day by day due to the rapid pace of development. Major economic areas such as agriculture and manufacturing compete for water supply with urban and rural development, as well as environment protection. Gujarat was historically never associated with being water surplus; almost 70% of the state’s freshwater resources are concentrated in 30% of the state’s area. Uncertain rainfall and lack of major rivers flowing across the state led Government of Gujarat to take a string of innovative steps for optimum utilization and minimal wastage of the state’s water resources.

Government of Gujarat has effectively carried out a string of projects to ensure proper water supply to the industrial, agricultural and domestic sector. Government of Gujarat has implemented a 5C model (Collect River Water, Connect Rivers, Channelize Water, and Control Local Water & Community Participation) to holistically approach water management related issues in the State. An extensive canal network has also been developed across the state to ensure constant supply of agricultural water to farmers.

The river Narmada has acted as a boon for Gujarat and its people. The Government of Gujarat has established the Narmada, Water Resources, Water Supply and KalpsarDepartment (NWRWS) to manage water resources of the state, and to cater to the multiple demands of the state for uninterrupted supply of water. It aims to harness the untapped water of the Narmada for the socio – economic development of millions of people, even in far flung areas of the state. The NWRWS department has a number of sub – departments

organizations and Special Purpose Vehicles (SPV) functioning under it, which are responsible for managing the holistic water management scenario in the state; in addition to implementing a number of welfare schemes and initiatives.

According to Shri. Ashim Khurana, IAS (Principal Secretary, Narmada), around 7.94 Million Acre Feet (MAF) out of Gujarat’s share of 9 MAF from the river Narmada has been allotted by the state for agricultural use, around 1.2 MAF for drinking water purposes and the rest for industrial use. He believes that effective distribution and management of the water from River Narmada could play a crucial role in further boosting the economic progress of the state, and can even serve as a role model of river water management for other states in India. The Sardar Sarovar Narmada Nigam Limited (SSNNL) was set up by the state government to implement the Sardar Sarovar (Narmada) Project in the year 1988. The latter is a multipurpose project which envisages construction of concrete gravity dam across river Narmada in Narmada district. Dr. JN Singh, IAS (Managing Director, SSNNL) states that the project could provide annual water distribution system for irrigation across Gujarat – Rajasthan border with a network of 74,626 Km. Once completed, it could also supply water for domestic and industrial uses for about 9633 villages and 131 townships.

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2001 2011 2021 2031

16.9 20.3 23.7 27.1

11.814.1

16.518.8 Urban

Rural

Population served by Sardar Sarovar Project (in Lakhs)

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Today The Sardar Sarovar Project is one of the largest water resources projects of India covering four major states - Maharashtra, Madhya Pradesh, Gujarat and Rajasthan.

The Water Resources Department has been created to sustainably manage, develop, conserve & protect water and related resources all over Gujarat. Shri. SJ Desai, IAS (Secretary, Water Resources) explains that the Water Resources Department is responsible for holistic water resource management in the state which includes preparation and review of thewater policy, strategic planning for water resource usage, approving utilization of water resources for irrigational and agricultural purposes maintaining ground water level across the state; and facilitating water supply in water scarce areas of the state.

Saurashtra – Narmada Avtaran Irrigation Yojana

(Sauni Yojana) has been launched to divert

excess over flowing flood water of Narmada

allocated to Saurashtra Region. This excess

water will be distributed to 115 reservoirs of

seven districts of Saurashtra through total 1115

Km long link pipelines, benefiting 10,22,589 acre

land. In order to distribute the water from the

water surplus zones to the water scarce zones,

the State has interlinked its rivers; Gujarat is the

first state in the country to interlink 20 rivers.

Saurashtra, North Gujarat and Kutch regions are

historically water scarce in which per capita

water availability is exceptionally less; these

areas are now reaping the benefits of this

interlinking scheme. In addition, the Water

Resources Department also mobilizes other

major schemes such as Sagarkhedu Yojana,

Hydrology Project, Vanbandhu Yojana, Salinity

Ingress Prevention scheme and Flood

Protection schemes, with the aim of improving

the quality of lives of people from all socio –

economic sections, via effective water

management.

The Water Supply Department is the section of the department responsible for providing one of the most vital components of life to people across the state – clean drinking water. Dr. RK Gupta, IAS (Principal Secretary, Water Supply)explains that the working of the Water Supply Department has been distributed and accordingly allotted to three nodal agencies, namely Gujarat Water Supply and Sewerage Board (GWSSB), Water and Sanitation Management Organization (WASMO) and Gujarat Water Infrastructure Company Ltd. (GWIL).

Dr. Gupta, who is also the Chairman of GWSSB, explains the role played by the GWSSB in ensuring water supply across the state, in terms of planning and implementing the drinking

The Water Resources Department is also

responsible for implementing a number of state

– promoted water management schemes and

projects, in addition to maintaining the safety

and effective operation of dams and large

capacity canals in Gujarat. As part of the entire

Interlinking of Rivers project, the Sujalam

Sufalam Yojana has been implemented as a long

term planning for 10 districts to provide safe and

adequate drinking water, utilizing the additional

flood water of the Narmada River. The

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water supply and sanitation policy, coordinating with the Government of India for implementing development programs such as the National Rural Drinking Water Programme (NRDWP); and even soliciting international support for water supply and sanitation programs in Gujarat. GWSSB provides drinking water supply to citizens of rural and urban areas of Gujarat by creation of various types of water supply projects like Local Source based individual village water supply projects.

water pipelines for transmission of Narmada Canal water to interior area in various districts of Gujarat.

The Water Supply Grid developed and now being operated by the Government of Gujarat is one of the major achievements of the State, according to Dr. Gupta. The water supply department of Gujarat has developed a state –wide water supply grid to augment local water resources and to manage the problem of water scarcity. This water supply grid consists of water supply schemes, based in Narmada and other regional water supply schemes. It is a massiveproject, with a spread of 1,20,769 Km and aims to serve 75% of the Gujarat population. With this grid, the government is able to supply water to far off places through inter – basin bulk water transfer. Water scarcity, in the extreme water scarce regions like Kutch, has reduced by a considerable amount over the decade; and has resulted in saving the State from the additional expenditure on supplying water tankers to drought affected areas.

According to Dr. MS Patel, IAS (Secretary, Kalpsar), the Kalpsar project visualizes total multipurpose development of the Gulf of Khambhat. It has been planned to construct a 30 Km dam by joining the West bank and East bank

State wide Drinking Water Supply Grid

WASMO is a Special Purpose Vehicle (SPV)created by Government of Gujarat to revolutionize the water management in rural areas by working towards drinking water security and habitat improvement, by empowering communities to manage their local water sources and village drinking water supply system and services. WASMO enables communities and especially women to plan, manage and adopt best practices for community water management, through its participatory distribution system, which is a UNO award winning initiative of Gujarat. Dr. Gupta illustrates this formation of local pani samitis(water committees) as one of the foremost examples of decentralization ofpower and encouraging micro – management, which are well known as integral parts of the Gujarat Model, all over India. The Gujarat Water Infrastructure company ltd. (GWIL) is engaged in planning and implementation/ execution of bulk

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of the Gulf. About 65,000 million cubic meter quantity of water will be available for irrigation for 10.54 lakh hectare area of 39 talukas of 6 districts of Saurashtra. The project, once completed, will lead to the creation of the world’s largest man – made freshwater reservoir, also providing added benefits such as enhanced connectivity to the Dholera SIR and the Delhi Mumbai Industrial Corridor; and the potential to develop wind energy and fisheries in and around the concerned region.

To successfully implement the Sardar SarovarProject, in addition to building coreinfrastructure, it is also necessary to ensure that the people in the nearby regions do not get adversely affected by the project development and allied activities. Recognizing this responsibility, the NWRWS Department has set up a separate Resettlement and Rehabilitation (R&R) sub – department to ensure that all concerned villages and villagers in the affected areas are able to lead at least similar, if not better lifestyles, post the completion of the project. Shri. MS Dagur, IAS (Principal Secretary, R&R) explains the various roles that the R&R Department plays in the implementation of the Sardar Sarovar Project, which include land acquisition for the project through proper legal channels, ensuring safe and beneficial resettlement of affected villagers; and operating a proper grievance redressal system to address the concerns and complaints of the villagers in a sound manner. The Sardar Sarovar PunarvasvatAgency (SSPA) was established in 1992 as the agency for effective implementation of concerned R&R projects in Gujarat. According to Mr. Dagur, the agency has recognized that while Resettlement is more concerned with provision of infrastructure to families at their new places of residence, Rehabilitation deals with empowerment of families to acclimatize to, and ease into their new environments; this in turn enables the SSPA to customize its approach towards these two different phases.

Gujarat has also collaborated with a number of global organizations to improve and further optimize the water management scenario in the state. The World Bank is supporting major projects in Gujarat such as Integrated Coastal Zone Management and the Hydrology Project Phase II. The Danish Water Forum has signed a MoU with GWSSB in Vibrant Gujarat 2013, which is a strategic partnership with specific areas of interest being non‐revenue water, reduction of leaks from pipelines and efficient water management. Scottish WaterInternational has also signed a MoU during Vibrant Gujarat 2013 to share their knowledge on efficient operation of water networks and best management techniques, with the focus areas being Waste Water Networks, PPP/PFI Schemes and Advanced Water Testing and Treatment Methods.

The Government of Gujarat has also taken stringent steps to renovate, extend, and modernize the canal system of existing major and medium Irrigation Schemes in the view of bridging the gap between irrigation potential created and its utilization. The government has also passed the Gujarat Water Users’ Participatory Irrigation Management Bill in the year 2007 authorizing the farmers to constitute Water Users’ Associations (WUA) for management of canals handed over, after rehabilitation by the Government. The Gujarat Green Revolution Company Ltd. (GGRC) is an implementing agency for the implementation of Micro Irrigation Schemes on behalf of Government of Gujarat. In the state budget for the year 2014 – 15, almost INR 450 Billion has been allocated for the development of social sectors in Gujarat, which includes development of the water supply scenario. With such strong financial support and efficient administrative mechanism, the water management scenario in Gujarat seems to have a bright future indeed.

GVFL plans USD 1 billion fund for Japanese ventures

March 18, 2014

Ahmedabad-based Gujarat Venture Finance Limited (GVFL) is planning a USD 1 billion (~INR 6,000 crore) fund meant exclusively for Japanese ventures in Gujarat. The company is already witnessing commitments from investors in Hong Kong and Singapore regions for its INR 1,000 crore Golden Gujarat Growth Fund (GGGF). With a size of USD 1 billion (INR 6,000 crore), the fund will also up the ante of investment per investee firm.

Once financially closed, this will be the largest fund ever attempted by GVFL for which the company is in talks with Japanese and other South East Asian investors to invest through the fund. Till now, the largest fund attempted by GVFL is around INR 500 crore through the Golden Gujarat Growth Fund - 1, even as it plans to expand the fund to INR 1000 crore.

Dr. Harish Pattnaik, Managing Director of GVFL said that in the next one or two years, more than 100 Japanese entrepreneurs will be coming to Gujarat to set up businesses. In recent times, Japan has reiterated its interest of investing in India, especially in Gujarat. He further added that there will be cluster based specialized industries who would also need infrastructure built around their food and culture. He informed that they aim to tap them through a dedicated fund.

He further mentioned that as against the conventional limit of INR 25-50 crore, this fund will see ticket size of around INR 200-500 crore per venture. The fund will act as a private equity and growth capital. He said that many Japanese firms have shown interest of investing in Gujarat such as Toshiba and Mitsubishi. Moreover, there


are few Japanese agencies such as JICA and JETRO are active in the state already and can be partnered with.

GVFL plans to achieve financial closure for the Japanese fund by 2016.

Indian Oil announce to build INR 30,000 crore refinery at Mundra in Gujarat

March 18, 2014

Indian Oil Corp (IOC) announced to set up 30000 crore rupees refinery at Mundra in Gujarat with 15 million tones capacity. The plant is scheduled to come up by 2021-22. The Adani Groups offered land to IOC to set up refinery at Mundra.

The plan to set up a refinery is to increase the processing capacity of IOC to 100 million tones by 2021-22. Current total capacity of IOC is 54.2 million tones with seven refineries and subsidiary Chennai Petroleum Corp operates an 11.5 million tones plant.

A coastal refinery would enable IOC to ship in larger quantities of heavier grades of crude oil, which are cheaper because they are more difficult to process into fuels. All the refineries of IOC are landlocked.

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In the 12th Five Year Plan, IOC planned to invest 56,200 crore rupees. Out of which 27,159 crore rupees was set aside to expand refining capacity.

Also, IOC is planning to expand its refineries in Koyali (Gujarat), Mathura (Uttar Pradesh), Panipat (Haryana) and Paradip (Odisha) to achieve the 100 million tones target.

Malaysia finds Gujarat 'vibrant' for trade

March 20, 2014

Malaysian diplomats described Gujarat as a 'vibrant' state that is witnessing development. To find out opportunities for Malaysian companies and increase trade with Gujarat, Consul General in India, Mohamed Hatimi Abasand Vice Consul Omar Salleh today visited a trade exhibition at Gujarat University Convention centre. They were on their first visit to the city and inaugurated the fair.

Vice Consul Omar said that they aim to encourage Malaysian corporates to increase trade with Gujarat based firms. He further added that Gujarat is a vibrant state and lots of development in this city can be seen. He is also the Assistant Trade Commissioner of Malaysia External Trade Development Corporation (MATRADE). He said that the trade deficit between India and Malaysia should be brought down by collaborations in various sectors.

He further mentioned that they are exploring opportunities for our firms in various sectors in Gujarat, like construction, oil exploration, logistics and education. They also met industry leaders of Vadodara and also sent invitation to Ahmedabad based businessmen to find out opportunities.

As per the figures shared by them, trade between India and Malaysia accounted for USD 13.38 billion in 2013. However, Malaysia's

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cent while import saw a growth of 36.4 per cent during the period.

Vice Consul Omar informed that they are eyeing tier-II cities like Ahmedabad to find out opportunities for our firms.

Anil Group invests INR 150 crore for upcoming nutraceuticals plant at Halol

March 24, 2014

Buoyed by the robust growth in the food processing industry in the country, Ahmedabad-based Anil Group is planning to increase its focus on the value-added segment by venturing into nutraceuticals segment. The company plans to commission its greenfield facility at Halol near Vadodara in the next financial year.

Darshan Mehta, Executive Director, Anil Bioplus, an arm of the Anil Group, said that value added segment in the entire food processing industry offers maximum growth and they plan to enter the nutraceuticals segment to harness the potential as this industry is still in its nascent stage in India. The company has increased its focus on production of calcium gluconate and sodium gluconate.

According to Darshan Mehta, manufacturing of gluconates is in line with the company’s policy of introducing new value added product regularly.


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He added that the new greenfield capacity, which is expandable and has infrastructure that is USFDA approved, will also manufacture enzymes and citrates.

For increasing production of these gluconates, the company has invested around INR 150 crore in a greenfield plant that is coming up at Halol. The new facility would primarily be focusing on domestic as well as global market demand.

Calcium gluconate is used as a source of calcium in veterinary and nutraceutical applications, while sodium gluconate is used in construction and chemical industries.

As of now, the company provides a range of diverse products for end-user industries such as food & beverage, textiles, pharmaceuticals, paper. Now with gluconates, the company will enter the nutraceuticals industry as well.

Atul Auto to set up new unit near Ahmedabad

March 26, 2014

Rajkot-based three wheeler makers Atul Auto will be setting up new production facility with a capacity of 60,000 units per annum near Ahmedabad. The auto company will invest INR 100 crore for the project and is looking for land in Sanand and on the Bagodara-Vasadexpressway.

Jitendra Adhia, vice president (finance), AtulAuto said that they are looking for locations around Ahmedabad. He further informed that they are looking for feasible location near Sanand as well as Bagodara-Vasad expressway.

The new production unit will come up in two phases, each with a capacity of 30,000 units per annum. Last year, Atul Auto had doubled its production capacity at Rajkot plant from 24,000

units per annum to 48,000 units with an investment of INR 30 crore.

The company has sold 3,105 vehicles in February 2014 as compared to 2,610 vehicles in February 2013, showing growth of 18.97%. The total sale between April 2013 and February 2014 was 34,343 vehicles as compared to 29,010 vehiclesbetween April 2012 and February 2013, an increase of 18.38%.

Jitendra Adhia mentioned that they expect the growth in 2013-14 to be anywhere between 18-20%. Despite negative growth in other automobile segments, the company has seen positive growth around the year. Atul Auto exports in many African countries including South Africa.

Sanghi Industries to invest INR 250 crore to raise cement production, buy ships

March 31, 2014

Sanghi Industries Ltd (SIL) will invest INR 250 crore in next 18 months to increase capacity in cement production by 30% and for acquiring ships and setting up sea terminals.

Out of this, manufacturers of Sanghi cement will invest INR 150 crore in acquiring vessels for logistics as well as in commissioning new sea terminals. The company will also spend INR 100 crore to raise cement production capacity from 2.6 million tonnes per annum (mtpa) to 3.5 mtpa by end of 2015.

Alok Sanghi, director, Sanghi Industries Ltd. Said that currently, clinker production is higher than cement production at the plant. To correct the mismatch, they are investing INR 100 crore in increasing the grinding capacity. This will take 14 months in commissioning. The debottlenecking will increase the grinding capacity by 30% of the Abdasa plant in Kutch.


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SIL will acquire six vessels in next five years for transportation of its products into newer markets to reduce fuel cost and increase distribution capability.

Alok Sanghi further added that they currently charter ships from market for distribution. Theywill acquire two vessels immediately and then two vessels every 18 months. Company plans to procure ships from China to save cost and time.

The company is also in the process of setting up jetties at Navlakhi port in Morbi district and at Mumbai. With an eye on new markets, SIL is also planning to set up jetties at Goa and Kochi ports. SIL exports 20% of its total production, mainly clinker to middle-east, Africa, Sri Lanka and Bangladesh.

SIL has invested over INR 2,000 crore on the Abdasa plant that began production in 2003.

Astral to invest INR 30 crore on CPVC fire sprinkler pipes

April 2, 2014

Having bagged the Bureau of Indian Standards (BIS) certification for its CPVC BlazeMaster Fire Sprinkler Pipes, a first in the industry, Ahmedabad-based Astral Poly Technik Limited is set to invest around INR 25-30 crore on the system.

So far the Indian pipes market is predominantly controlled by metallic pipes for fire sprinkler

system. However, post BIS certification, Astral will be the first mover in the country for Chlorinated polyvinyl chloride (CPVC) polymer fire sprinkler solutions. According to Astral, the CPVC fire sprinkler system will be absolutely free from all shortcomings that metallic pipes face such as corrosion, scaling and rusting.

BlazeMaster CPVC pipe and fittings are specifically designed for fire sprinkler systems having various advantages such as faster and easier installation process, light weight material for ease of transportation and maneuverability on the job site, superior water delivery, resistant to scale and corrosion to pipe, and low flame and smoke characteristics.

The company has four manufacturing locations for pipes and fittings including Santej, Dholka, Baddi and Hosur. At the year end 2013, Santejplant had a capacity of 48,341 MT to manufacture plumbing systems, whereas the Baddi plant’s manufacturing capacity for CPVC fittings and valves is around 4,914 M.T. The Dholka plant, on the other hand, has a capacity of 23,957 MT.

Moreover, to cater the southern market of the country, the company is putting up its fourth plant at Hosur with an initial capacity of 7,000 M.T. which will be increased over a period of time. In all, today company has total production capacity of 95,000 MT (roughly) and within a span of next 2 years they plan to achieve a total capacity of over 130,000 MT.

Buffett’s Lubrizol to invest USD 50 million in Dahej plant

April 3, 2014

Lubrizol Corporation, a fully-owned subsidiary of Warren Buffett’s Berkshire Hathaway Inc., plans to set up a thermoplastic compound plant inDahej, south Gujarat, with an initial investment


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of USD 50 million (INR 300 crore). This is his first investment in India.

The plant, which will come up in the Gujarat Industrial Development Corporation (GIDC) estate in Dahej, will make TempRite chlorinated polyvinyl chloride (CPVC) compounds. It will be operational in the first quarter of 2015 and will have the capacity to produce around 55,000 tonnes of CPVC compounds annually. Lubrizol will manufacture the compounds, which will be supplied to its two license holders in India –Astral Poly Technik Ltd and Ashirwad Pipes – to manufacture CPVC pipes.

Manoj Dhar, head of TempRite, India & SAARC informed that this is Lubrizol’s first plant outside the US and Europe. This investment in India is a major step forward for our customers based in the region. This plant will help them meet the growing demand in the market. TempRite is a brand owned by Lubrizol.

It was informed that the overall investment in CPVC plants for resins and compound manufacturing will be USD 400 million, which will be made in two phases. As a part of the first phase, USD 50 million for the plant in Dahej will be invested.

Reserve Bank of India eases norms for import of rough diamonds

April 3, 2014

Diamantaires, especially the small and medium ones, have an opportunity to directly import rough diamonds from any mines around the world.

The Reserve Bank of India (RBI) has liberalized the norms of rough diamond import that will allow the traders and manufacturers to directlyimport rough diamond from anywhere in the world by taking advance remittance from the

Indian banks.

Earlier, only eight to nine global miners of rough diamonds namely Diamond Trading Company (DTC), Rio Tinto, Alrosa, BHP Billiton, Alrosa, Endiama, Gokhran, Harry Wintson, etc. were notified to whom the importer was allowed to make advance remittance without any limit and without a bank guarantee or standby letter of credit for import of roughs.

Honda Cars scouts Gujarat for new plant site

April 4, 2014

According to official sources, Japan-headquartered Honda Cars India might set up itsplant in in the country in Gujarat. This follows two-wheeler maker Honda Motorcycle and Scooter India (HMSI) setting up a plant in the state.

According to a senior government official Honda Cars is looking for a 250-acre land parcel and has already visited a site in Vithalapur. Vithalapur is about a few kilometers from Hansalpur, where Maruti Suzuki India’s plant is proposed. MarutiSuzuki has also bought a plot in Vithalapur for expansion in the future. The area, about 110 km from Ahmedabad, lies between Sanand and Mehsana towns. In the same region, HMSI has bought about 200 acres of private land.


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Recently, Honda Cars India started manufacturing passenger cars at its Tapukaraplant in Rajasthan’s Alwar district; the facility is spread over 450 acres. Cumulatively, the company has invested INR 3,526 crore in the Rajasthan unit. The unit started phase-I operations in 2008, with a press shop and power train shop for engine components. In February this year, the unit started making vehicles. Initially, it is running at a capacity of 60,000 vehicles a year, working in a single shift. The plant has an installed capacity of 120,000 cars a year.

Gujarat Alkalies and Chemicals commissions sodium chlorate plant

April 5, 2014

Gujarat Alkalies and Chemicals has announced that the Company has successfully commissioned Sodium Chlorate Plant with a capacity of 20,000 TPA at its Dahej Complex andthe commercial production has been achieved on 29 March 2014.

The estimated annual revenue of the products to be manufactured in this Plant at full capacity would be approximately INR 100 crore considering the prevailing market price.

Pharma SMEs from Gujarat see 20% growth in exports

April 6, 2014

While big pharma companies are facing hurdles on the export growth front thanks to the issues with the US drug regulator, in contrast, small and medium enterprises (SME) have seen a good growth in formulations exports this fiscal.

Pharma SMEs in the state of Gujarat, which is considered a pharmaceutical manufacturing hub and houses over 200 WHO-GMP certified manufacturing facilities, have clocked a 15-20 per cent growth in exports to semi-regulated markets this year.

It is interesting at a time when even Pharmexcilsources have indicated that while the target for this fiscal was around 15 per cent growth in exports over INR 79,500 crore worth exports from India 2012-13, with the current conditions, it looks like pharma exports would be able to clock a 10-12 per cent growth over last fiscal. Gujarat had a nearly 22 per cent share in all-India pharma exports in 2012-13.

R S Joshi, executive secretary of the Indian Drug Manufacturers Association (IDMA), Gujarat State Board, too admitted that while the expectation of growth in exports from Gujarat was around 16 per cent, as of now, it looks like exports would manage to grow by about 11 per centfrom the state.

He further added that SMEs have outperformed big pharma companies in terms of growth rate. Exports to regulated markets like the US and the European Union are hit. But, as SMEs export to semi-regulated markets, their growth has not been impacted. He further added that share of SMEs in overall exports from Gujarat is around 70-80 per cent.

KS Chhabra, managing director of Hindustan Biosynth, a Vadodara-based pharmaceutical firm said that most SMEs from the state are exporting to countries like Philippines, Sri Lanka, Thailand in the South Asia block, apart from countries like Nigeria, Kenya, Ghana in the African continent. He informed that some of the SME units have even managed to clock over 20 per cent growth rate. Of the net exports by SMEs from the state, the share of emerging


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markets is close to 60 per cent, which is growing at a 30-35 per cent rate every year.

Dutch firm inaugurates new human nutrition products plant

April 9, 2014

Dutch life sciences company Royal DSM inaugurated its Fortitech premixes plant in Vadodara, Gujarat with an investment of overUSD 10 million. It is company’s first human nutrition plant in India and company’s fourteenth in the world.

The Vadodara plant is constructed across 5,000 square meters and will be one-stop source for food, beverage and pharmaceutical manufacturers. The net land allotted to the company is around 10,000 square meters, and DSM has plans for future expansion at the site.

Fortitech Premixes are customized blends of functional ingredients from a comprehensive selection of vitamins, minerals, amino acids, nucleotides and nutraceuticals. They are used in a wide range of products, including baby formulas, cereals, bars, dairy products, nutrition and sports drinks, juices, snacks, waters, candies and supplements. Additionally, the nutritional ingredients are also tailored to address specific health concerns with research to support their claim.

The new plant will service the South Asian market with its teams split between Delhi and Mumbai, as well as a business development group, based in Malaysia and an upcoming Nutrition Innovation Center in Singapore.

The Ambassador of the Kingdom of the Netherlands, Alphonsus Stoelinga said that India and the Netherlands are very important economic partners for each other. India is the fifth largest source of Foreign Direct Investment (FDI) in the Netherlands and vice. He mentioned that the plant is a perfect example of Dutch FDI in India.

Apart from premixes, the plant would also make micro-nutrition products. It would be a blending facility with a capacity of around 4,000-7,000 tonnes per annum.

Rick Greubel, president, human nutrition & health said that as one of the fastest growing economies in the world, this facility in India will add to DSM’s overall growth and profitability. He further added that by expanding their presence, they aim to deliver more value to our Indian and South Asian customers. The company feels that being located strategically near the Delhi-Mumbai Industrial Corridor, it would cater to the key markets of DSM as well as its customer base in Gujarat.

IFC to invest USD 30 million in food additives maker Lucid Colloids

April 10, 2014

International Finance Corp (IFC), the private sector investment arm of the World Bank, is investing USD 30 million (INR 180 crore) through a combination of equity and long-term debt in


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Lucid Colloids Ltd, one of the top four producers of guar gum.

The Lucid Group manufactures, markets and distributes natural, modified and derivatisedhydrocolloids like guar, tamarind and cassia, gum blends, emulsifiers, food stabilizer systems, nutritional ingredients, food additives and ingredients, foodstuffs, agro commodities and fine chemicals.

Lucid Colloids, the flagship firm of the privately held group, plans to increase the production capacity and undertake backward integration. The company also plans to set up research facilities. These projects are in various stages of development and implementation.

The firm is implementing the projects at locations in Gujarat and Rajasthan, including at its existing manufacturing facilities in Jodhpur, Rajasthan. According to the company statement the investment will also enhance the global competitiveness of a mid-sized export-oriented player.

Born out of the restructuring of the erstwhile Indian Gum Industries Ltd (IGI) in 1999, Lucid has since then consolidated and expanded its operations and activities. IGI was established in 1958 as a financial and technical joint venture with Cesalpinia S.p.A of Italy and then later with Hercules Inc. of the US. In 1987, IGI became a fully Indian owned and managed company.

New Production sites are planned at Meglasiya(Rajasthan), Bikaner (Rajasthan), Jhagadia(Bharuch, Gujarat) and Aurangabad (Maharashtra). For IFC, this would mark another bet in India after it committed USD 85 million in Varun Beverages, the largest bottler for PepsiCo in South Asia.

GAIL plans INR 2,600 Crore tyre rubber plant in Gujarat

April 10, 2014

Public sector unit GAIL (India) is gearing up to spend about INR 2600 crore to set up a poly butadiene rubber (PBR) plant in Gujarat.Currently, RIL is the only producer of this rubber — highly elastic and stress-resistant —which it is used to make tyres.

The state-run company has decided to set up a 110,000 tonne-per-year PBR plant at Dahej in Gujarat, which would cost INR 2574.45 crore. Of this, INR 561.52 crore would be borrowed from overseas.

According to the officials GAIL may also consider to rope in ONGC as a joint venture partner for the project. The project is targeted to be completed by the first quarter of FY17.

India’s PBR demand is around 160,000 tonne a year, of which half is met indigenously and the rest is imported. The demand for this kind of rubber is expected to grow 6.4% annually in the country. GAIL would also look at exporting PBR to China and other south-east Asian countries, which are net importers of PBR.

The raw material (butadiene) required to produce PBR would be sourced from ONGC Petro Additions (OpaL), expected to be commissioned in the current financial year. GAIL is currently in discussions with OpaL for sealing a long-term contract for procurement of butadiene. OpaL is setting up a greenfield petrochemical project at Dahej.The GAIL plant would also be designed to process imported butadiene, should there be a shortfall in domestic supplies.

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Besides showcasing the strength of Indian Technical Textile industry, the event also served as major platform for B2B meetings, knowledge sharing, technology exchanges, and also forhighlighting the Indian technical textile space as a prime investment destination for global players.

Technotex 2014

March 20-22, 2014

The Ministry of Textiles, Government of India, along with Federation of Indian Chambers of Commerce and Industry (FICCI), jointly organized Technotex 2014, the 3rd edition of the largest international exhibition and conference of the technical textile industry in India, in Mumbai during March 2014. The event provided a strong platform for the Indian technical textile industry to highlights its capabilities and strengths; and to promote the opportunities in this industry segment to the global textile community.

Ms. Panabaka Lakshmi, Hon’ble Minister of State for Textiles, Government of India presided over the inaugural session of the three – day event. Dr. Arbind Prasad, Director General, FICCI; and Mr. Shishir Jaipuria, Chairman - FICCI Textiles committee and Managing Director, GinniFilaments were among the other distinguished speakers at the event who showcased the current status of the technical textiles industry in India; along with possible solutions and initiatives which could be taken to enable further growth of this sector.

The theme of the Event was 'Technical Textiles: Accelerating Usage and Promoting Investments'.

Leading companies from countries such as China, Taiwan, Germany, Italy, Switzerland, Japan, Russia, USA, and South East Asian countries actively participated in the event, both as exhibitors and visitors. Gujarat was a State Partner at the event, which also witnessedsignificant participation from other Indian states such as Maharashtra, Karnataka, Madhya Pradesh, Rajasthan and North Eastern States. The event proved to be very fruitful to all the states to unitedly showcase India as a top destination for the technical textiles industry.

The concurrent exhibition witnessed around 150 focused exhibitors; Buyer – Seller meets on technical textiles; dedicated pavilions for China and Taiwan; State Pavilions for Indian states; huge participation from countries like Japan, USA, Switzerland and Germany; and an attendance of more than 8000 visitors.

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SME Sammelan 2014: A complete survival kit for SMEs

March 27, 2014

Industry representative body ASSOCHAM organized a one day seminar to discuss ways to bring about further technological and financial development in the Small and Medium Enterprises sector, alongwith showcasing the current management trends and global opportunities vis-à-vis SMEs.

The event was well attended by several key representatives and stakeholders in the MSME/ SME space, from the Government, public sector as well as private organizations. Shri DJ Pandian, IAS (Additional Chief Secretary, Industries and Mines Department) was one of the distinguished speakers at the event. He highlighted the key developments in the SME sector. He also suggested ways to boost the growth of SMEs across the nation.

A research report jointly prepared by ASSOCHAM & Abhyuday Techno Economics, which highlighted global opportunities for domestic industries, was released by Shri Pandian. The key take away from the event was that SMEs would continue to be strong contributors to India’s economic and industrial development.

Workshop on “Capacity Building Programme for Exports”

March 21-22, 2014

FIEO, Ahmedabad Chapter – WR, iNDEXTb, Govt. of Gujarat, and Southern Gujarat Chamber ofCommerce & Industry (SGCCI), Surat jointly organized a Capacity Building programme on Exports in Surat, Gujarat, with the aim of discussing ways to boost the exports from the region, and to come up with sector specific initiatives. The event was attended by senior Government of Gujarat officials, entrepreneurs and other stakeholders of the export sector.

Shri Kamlesh Yagnik, President, SGCCI; Shri Jagdish Shah, General Manager, iNDEXTb; Shri Jayprakash Goel, Asst. Director, FIEO, Ahmedabad Chapter – WR; and Shri Ajit Shah were amongst the notable speakers at the event. Surat region’s contribution to India’s exports was extensively discussed during the seminar, including the major contribution in the gems, jewellery and diamond processing space.

The importance of business intelligence and export awareness to increase exports was stressed upon by all the speakers during their presentations.

The activities conducted by FIEO to promote exports, along with the various Government policies, amenities and assistance schemes for export oriented units were explained to the audience. The global requirements from Indian exporters, along with effective marketing and branding tools were also discussed and debated over the course of the seminar. The need to conduct constant knowledge sharing and capacity building programs for increasing exports was emphasized during the workshop.

Serene Beaches of Gujarat

Gujarat boasts a 1600 Km long coastline, dotted with pristine beaches which continue to be top tourist destinations, year after year. A notable point about Gujarat’s beaches is the efforts that have been put in by the State Tourism Department to ensure that these beaches remain safe and litter free, thus making them centers of sustainable tourism. Beaches in Gujarat abound with places of pilgrimage, resorts, water sport activities, marine wildlife sanctuaries and so on. Some of the most prominent beaches of Gujarat are covered in this section of the newsletter.

Mandvi Beach, Kachchh District:

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beach, behind Vijay Vilas Palace, is 8 Km fromtown, and has a nominal entry fee. This secluded Vijay Vilas Beach has white sand, clean swimming locations and even accommodation available in air-conditioned tents along the shore.

Dwarka Beach, Devbhoomi Dwarka District:

The Mandvi beach is located in Kachchh district, about 50 Km from Bhuj. Mandvi was once a major port of the region, and was made famous by its fondness among the Royal family. The beach is famous for activities such as swimming; water sports like para sailing, skiing and surfing and various enjoyable attractions for families such as camel rides and joy rides.

The Wind Farm Beach is 7 Km west of town, famous for the impressive wind farm that harnesses the wind power of the region to generate electricity. The Maharao's private

Dwarka is a very holy city for Hindu pilgrims. The city is famous for the Dwarkadish temple or Jagat Mandir and has been identified as the capital city of Lord Krishna. Dwarka has developed from just a major pilgrimage site to a location of choice for a beach holiday in Gujarat.

There is a small island decorated with temples, a white beach, coral reefs and extensive marine life. Dwarka is renowned amongst marine wildlife enthusiasts and nature lovers because marine fauna such as dolphins, porpoise, sea turtles, octopus, star fish, sea urchins and so on can be observed in their natural habitat here. Scuba diving is also an attraction for adventure sport lovers visiting Dwarka.

Beaches in Somnath:

Scattered around Somnath, are famous beaches such as Veraval Beach, Somnath Beach, Ahmedpur Mandvi Beach and Chorwad Beach.

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Veraval beach is located very close to Somnath. The beach is still largely untouched, and only a small part of the beach has been commercialized. The beach is famous for ancient ruins and archeological sites located near its shore.

The Somnath Beach is an example of natural beauty and is best for solitude seekers. Swimming and adventure sports are not recommended at the beach but the most spectacular sight of beach is the fishing port, where thousands of fishing trawlers can be seen unloading their catch.

Ahmedpur Mandvi, which lies on a 6 Km stretch of clear Arabian waters kissing the beach, is one of Gujarat's little-known, but finest examples of

marine beauty. This beautiful beach then continues as Ghogla Beach into the adjoining part of mainland Diu. The beach offers various water sport activities as well as opportunities for dolphin sightings.

The Chorwad beach serves as a base point for tourists wishing to explore the Somnath region. Chorwad is located 37 Km from Somnath and was once home to the royal palace of the Nawab of Junagadh. Though the beach is not recommended for swimming, it is still famous for rocky shores and boat riding.

Gopnath Beach, Bhavnagar District:

Gopnath beach is located around 80 Km from Bhavnagar city. The beach was once the summer home of Maharaja Krishna Kumar Singhji of Bhavnagar. The pristine sea coast withspectacular limestone cliffs, sea breezes and colourful birdlife, is a major attraction for all tourists visiting this region.

The Gopnath beach has firm sands and shallow shore waters for swimming. Nearby places of interest include the Talaja Jain Temple, GopnathTemple and the Jhanjmer Fort. Another unique feature is that this beach lies in one of the biggest ship – breaking zones of the country.

Industrial Extension Bureau

Block No 182nd Floor, Udyog Bhavan, Sector 11, Gandhinagar -382010Gujarat, India

Phone:+91 79 232 50492+91 79 232 50493+91 79 232 56592

Fax+91 79 232 50490

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Find us on the Web:www.indextb.comwww.vibrantgujarat.com

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