Government of Gujarat presents

Gujarat: A Promising Investment Destination

JAPAN-INDIA ECONOMIC PARTNERSHIP

July 3, 2007

Gujarat: Growth Engine of India

Geographical Area 6% of India

Population 5% of India

Urbanization 38%

Industrial Investments 18% of India

Exports 14.3% of India

Per Capita Power Consumption 1313 units (National Average: 592)

Industrial Growth (2002-07) 12.5%

GSDP Growth (2002-07) 10.2% (Highest in 10th Five Year Plan)

Currently accounting for 16% of industrial production, Gujarat set Highest Target Growth Rate of 11.2% in 11th Five Year Plan

*GSDP (Gross State Domestic Product) 2

Gujarat: A Pioneer

Key projects under privatization:

Pipavav Port in 1992

Mundra Port in 1997

Liquefied Natural Gas (LNG) Terminals at Hazira & Dahej

4-lane State Highways: Ahmedabad-Mehsana & Vadodara-Halol

Mundra-Adipur Rail Project

500 MW power project (Essar-Hazira)

1075 MW project (Torrent–Surat)

Country’s only Liquid Chemical Port Terminal

In:

Privatizing ports, power, rail & road infrastructure

Establishing nodal agency for infrastructure development through private participation

Enacting the PSP* Law, namely, Gujarat Infrastructure Development Act, 1999

Enacting Special Economic Zone (SEZ) Act, 2004

Create SEZ Rules & Regulations

Only State with:

Integrated 2200 km State-wide Gas Grid

2 LNG Terminals

Established Gujarat State Wide Area Network (GSWAN)

*PSP (Private Sector Participation) 3

Chem & Petrochem. Pharma, Textiles, Engg & Auto, Diamond processing, IT/BT/ Financial servicesAgro-Processing, Dairy & Engg.Engg & Auto, Steel Pipes, Cement, SaltEngineering & CeramicsPetroleum, Minerals, Engg, Brass PartsSoda Ash, CementKey PortsLNG TerminalDMIC Influence Area

Mapping Gujarat’s IndustryComprehensive State-wide Industrial Presence

Surat

Rajkot

Valsad

Navsari

Ankleshwar

VadodaraAnand

AhmedabadGandhinagar

DAHEJ

HAZIRA

OkhaMundra

Surat

Surendranagar

Morbi

Rajkot

Mehsana

Kachch

Jamnagar

Amreli

Pipavav

83 product clusters across 182 industrial estates

Kandla

BhavnagarVeraval

Bedi

Porbandar

4

SEZs: Driving Industrial Development in Gujarat

First State to introduce flexible labour policy in

SEZs

Pharma

Chemicals

Engineering

IT/ITEs/ BT

Textile/ Apparel

Ceramics

Gems & Jewelry

Power

Multi-product

39 SEZ approvals, among the highest in India

5

41 ports dotting the longest coastline in the country – 1600 km

Access to States whose combined SDPs constitute 25% of India’s GDP

Gujarat’s Ports: Access to Hinterland

INDIA

Gujarat

Uttar Pradesh

Haryana

Rajasthan

Himachal Pradesh

Jammu & Kashmir

MadhyaPradesh

Punjab

Delhi

Uttarakhand

Natural Gateway to the rich land-locked northern and central hinterland

AhmedabadVadodara

RajkotOkha

MandviMundra Kandla

Sikka Bedi Rozi

Porbandar

Veraval

Simar Jafrabad

Pipavav

BhavnagarDahej

MagdallaMithivirdi

Dholera

Maroli

HaziraVansi Borsi

Navlakhi

Surat

Key Cities

GMB* Ports

Private Sector PortsMajor Port

*GMB (Gujarat Maritime Board) 6

Advantage Gujarat

11 airports – highest in the country

Quality Power supply

State-wide Connectivity through Rail & Road network

Leading contributor in Diamond Processing, Petroleum and Chemicals

Rich mineral resources

Renowned educational institutes, such as Indian Institute of Management and Centre for Environment Planning & Technology

With global aspirations and a keen entrepreneurial spirit, Gujarat offers rich natural resources, robust infrastructure and a proactive Government

State Government has established Vision 2020 – a detailed blueprint for development of infrastructure

Amongst least mandays lost – 0.6%

Transparent private sector investment process

Sound fiscal base

Robust regulatory framework

Sector specific policies implemented

Enhanced public accessibility through E Governance

Focus on Information, Facilitation and Fast Tracking of Approvals

7

68 projects across sectors have been taken up under PPP mode with an investment of over USD 12 bn

26 projects implemented with an investment of around USD 4 bn

Facilitated via a network of Government institutions

Infrastructure Projects in PPP* Mode

Sector Number of Projects

Total Investments

(USD mn)Port 21 3590

Power 13 6378

Roads 16 700

Railway 6 300

Information Technology 9 910

Water 2 122

Urban Transportation 1 122

*PPP (Public Private Partnership)

Sectors addressed by institutions:

Infrastructure development

Industrial parks/ estates

Power

Oil & Gas

Water 8

Japanese Company Indian Company/ Organization Product/Sector/Area

Matsushita Electric Matsushita Lakhanpal Battery Dry Cell BatteryHitachi Life Hitachi India Air ConditionersHitachi Displays JCT Electronics ElectronicsChiyoda Corporation L & T Engineering

Sumitomo Corp Sardar Sarovar Narmada Project

Generators for the hydro-electric power

Mitsui Group Ruchi Soya (Steel) JV & Equity ParticipationKowa Company Ltd. Adani Port Ltd. Cargo Handling & Port InfrastructureC.ITOH & Co. Ltd. Reliance Industries Ltd. Crude Oil & Organic ChemicalsRicoh Company Ltd. Ricoh India Ltd. Facsimile, Transceiver, PhotocopiersJapan Metal Gasket Banco Products Automobile Cylinder GasketsKyoto Machinery Texprint Engineers Industrial MachineryNippon Sanso Inox India Ltd. Technology for Cryogenic Tanks Seiki Kogyosho Power Build Elecon Gears Ltd. Geared Motors and ReducersNichimen India Gelatine and Chemicals Chemicals

Increasing Japanese Alliances in Gujarat..

9

DMIC: Potential for Japan–Gujarat Partnership

Umargaon

Palanpur

Towards Delhi

Dahej

Hazira

Mehsana

Pipavav

Mundra Total length: 1483 km

Gujarat’s share: 38%

2 Investment Regions and 4 Industrial Areas identified initially in Gujarat

DMIC Influence Area in Gujarat includes:

62% of total area

18 districts out of 25

74% of population (37 mn)

29 of 39 SEZsDMIC Influence Area

10

DMIC: Potential for Japan–Gujarat Partnership

Delhi-Mumbai High Axel Load Freight Corridor Investment Region Industrial Area Proposed Logistics ParkContainer Freight Station (CFS)DMIC Influence Area

Majority of proposed investments to be established

along DMIC:

Total 260 projects – investment of

USD 45.80 bn

12 out of 23 Mega projects –

investment of USD 28 bn

29 out of 39 SEZs & IT Parks –

investment of USD 27 bn

District Ahmedabad proposed to

receive largest investment of over

USD 11 bn

Vibrant Gujarat Global Investors’ Summit ’07:

11

Mundra

Dahej

Pipavav

Kandla

Hazira

To Mum

bai

DMIC: Excellent Support Infrastructure

Mehsana

Palanpur

Bharuch

Surat

Existing Railway LineDMICRoad Connectivity from key portsIntegrated State-wide Gas GridNarmada CanalKey PortsKey Cities

Ahmedabad

Vadodara

12

To D

elhi

DMIC: Phase I Development Ahmedabad-Dholera Investment Region:International airport

Export Oriented Industrial Areas/ SEZs (Electronics, Engineering & Auto, Pharma, Cement, Textiles and IT)

Knowledge City

International Finance City

Container Freight Station with Multi-Modal Logistic Infrastructure

Power Plant of 3500 MW

Development of Mass Rapid Transit System

Vadodara-Ankleshwar

Ahmedabad-Dholera

DMIC

Vadodara-Ankleshwar Industrial Area:

Industrial estates: Ankleshwar, Jhagadia & Panoli

Export-oriented Industrial Areas/ SEZs (Engineering, Chemicals, Pharma,

Gems & Jewelry)

Knowledge Hub (IT/ ITEs/ BT) 13

Key Investment Region: Ahmedabad-Dholera

Bhavnagar

Vadodara

Dholera

MoUs worth USD 11.37 bn signed for projects in Ahmedabad Dist.

In several sectors including Textiles, Engg & Auto, SEZ, IT, Urban Development and Oil & Gas

International airport at Ahmedabad

Government has commissioned study for developing Dholera as Special Investment Region (SIR)

11 SEZs

Augmentation of Vatva Industrial Estate

Mumbai- Delhi High Axel Load Freight Corridor Existing RailwayNational HighwayMumbai-Ahmedabad ExpresswayState Highway

GandhinagarAhmedabad

Key Proposed ProjectsGreenfield Port

Integrated Logistics Hub with CFS

Power Plant

Finance City

Knowledge City 14

Key Industrial Area: Vadodara-Ankleshwar

Ahmedabad

Surat

Vadodara

Mumbai- Delhi High Axel Load Freight Corridor Existing Railway LineNational HighwayMumbai-Ahmedabad ExpresswayState Highway

Ankleshwar

MoUs worth USD 3.21 bn signed for projects in Vadodara District

In several sectors including Biotech, Chemicals & Petrochem, Agro & Food

Engineering & Auto cluster -General Motors (GM) plant at Halol

State Highway: Vadodara-Halol-Godhra

Up-gradation of Vadodara Airport

Augmentation of Ankleshwar & Jhagadia Industrial Estates

IT/ITES/Biotech Hub

4 SEZs

Halol

Key Proposed ProjectsTruck Terminal & Warehouse

Up-gradation of Vadodara Airport15

Surat-Navsari

Palanpur - Mehsana

Valsad-Umbergaon

Bharuch-Dahej

DMIC: Phase II Development Bharuch-Dahej Investment Region:

Chemical Port Terminal & Chemical Storage Facility

PCPIR (Petroleum & Petrochemical Investment Region)

Potential for Chemical, Pharma Industries

Dahej SEZ

Palanpur-Mehsana:

Industrial estates: Becharaji and Khamboi

Mehsana-Ahmedabad Broad Gauge Line

Surat-Navsari:

Export-oriented Industrial Area/ SEZ

Port Based Container Terminal at Hazira with Multi-Modal Logistic Hub

Valsad-Umbergaon:Augmentation of Umbergaon Industrial Estate

Container Freight Station

Investment Region Industrial Area

Industrial Areas:

16

Implications of DMICExpected Funding Contribution by Category of Projects for DMIC

Central Government Sponsored for all States

Gujarat Government Sponsored for the State

(in USD bn)

PPP Viable Projects 18.75 21.40Non-PPP Viable Projects 62.50 62.50

Requirement from Gujarat is 39% of India’s total Investment for DMIC

Methods of FinancingExisting Government of India (GoI) schemesProject Development Fund (PDF)Overseas Economic Cooperation Operations (OECO)Japan Bank for International Cooperation (JBIC)

Gujarat is the most industrialized state of India

Achieved highest GSDP Growth Target – 10.2% in 10th Five Year Plan

Highest Target set by Planning Commission – 11.2% in 11th Five Year Plan

Presence of Robust infrastructure – 41 ports, 11 airports, 39 SEZs

68 projects under PPP Mode

38% of DMIC (by length) in Gujarat

DMIC Phase I development: Ahmedabad-Dholera and Vadodara-Ankleshwar

Gujarat expected to contribute highest funds among all stakeholders

To Conclude….

Proposed Implementation Structure for State level DMIC projects: Investment Regions & Industrial Areas

State Level Agency

Perspective Planning & Development

Formulation of Projects Coordination Monitoring Implementation

Key State Network Institutions

Facilitating and catalyzing development and implementation of projects through PPP mode

Project Specific SPVs*

In consultation with stakeholders, to implement individual project components

*SPV (Special Purpose Vehicle) 17

Thank You