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Gujarat to have industrial zone for Japanese companies

Gandhinagar,Oct 12 (): Gujarat is to set up a dedicated industrial zone for Japanese investors coming to the state. It has already earmarked the zone which is in Mandal Taluk of Ahmedabad and near the Maruti Suzuki India car plant.

The nodal agency Gujarat Industrial Development Corporation (GIDC), which looks after industrial development in the state, has started the process of developing the infrastructure of dedicated zone to enable setting up of medium and large size units.

The ancillary units of Maruti Suzuki, along with medium and huge Japanese companies are interested to invest in Gujarat. GIDC will acquire around 500 hectares of land for the proposed zone and will modelled on the Rajasthan model of the Japan Industrial Zone in Alwar district. GIDC will make this bigger than the Rajasthan model and expect at least 25 companies to invest from Rs 100 crore to Rs 500 crore each.

However, land acquisition in the proposed area would be a major issue, especially now after the Mandal-Bechraji SIR tussle. The GIDC will start with plans to acquire only 150 hectares and slowly acquire more land. GIDC is also planning to develop a dedicated auto industry estate in the region.

In Hansalpur the state government has given 670 acres at around Rs 643 per square metre to Maruti. It needs another 330 acres close to the plant site. Maruti had signed the agreement with the Gujarat government for the purchase of land near Hansalpur to erect an all new manufacturing facility in June 2012. The plant is expected to be start functioning by 2015-16. Maruti investment is Rs 4,000 crore for the plant with 1 million car annual capacity. Total employment direct or indirect is expected to be 1.5 lakh. The state government has given Maruti plant the status of ‘mega and innovative project’ Japanese investors will set up 100 more companies in Gujarat by 2015-16, according to Japanese officials who said this at seminar ‘Doing Business with Japan’. The thrust would be on the auto mobile sector. Apart from joint ventures, there are currently 12 Japanese companies in the state.