To, The Ministry of Economy, Trade and Industry …3 Objective and Research Contents On 14th Sept...

March 16, 2018

FY2017 Study on business opportunity of High-quality Energy Infrastructure to Overseas

(India: Study on possibility of Infrastructure Development in Smart City in Gujarat State)

To,

The Ministry of Economy, Trade and Industry (METI) of Japan

Global Strategic Advisory Department

1. Project overview P.2

1

2. Target area development as role model for Make in India P.8

3. 10 year vision for the S. M. B. area and milestone P.117

2

1. Study overview

1.1 Objective P.3

1.2 Target area of study P.4

1.3 Methodology and team P.5

3

Objective and Research Contents

On 14th Sept 2017, Memorandum of Cooperation was inked between the Ministry of Economy, Trade andIndustry (METI), Japan and the State Government of Gujarat, India, where both sides has recognizedGujarat State as key state in terms of “Make in India” initiative and agreed to setup the “Japan and India Special Program for Make in India” in Mandal-Becharaji-Khoraj, Gujarat to cooperate on hard and soft infrastructure for facilitating investment in the region.

With reference to the above, the “Japan and India Special Program for Make in India” in Mandal-Becharaji-Khoraj, Gujarat, Ministry of Economy, Trade and Industry (METI) ,Japan has launched research work on overall regional development for visualizing Gujarat - Mandal-Becharaji-Khoraj region in next 10 years. For reference some key focus areas are to study are as follows Research Contents,

Future Planning on “Japan and India Special Program for Make in India”

In Mandal-Becharaji-Khoraj, Gujarat Objective

1) Investment Potential by Japanese companies in Mandal-Becharaji-Khoraj region and infrastructure improvement required by Japanese companies.

2) Requirements for formation of Industrialization Cluster such industrial Parks, incentives, human resources –industrial workers, Industrial & basic social infrastructure(road, water, power, telecommunications) , residential & commercial areas , logistics system etc.

3) Smart infrastructure implications such as public transport system, smart grid and logistics systems, 4) Present SIR policy challenges & issues etc. 5) Government Initiatives for development of Mandal-Becharaji-Khoraj region

Identifying Investment potential and boost in infrastructure development Study

Contents

1.1 Objective

MoC has been signed on 14th September 2017 between the

The State Government of Gujarat of India and METI.

Area of Cooperation (1) Planning

Both sides will conceive a mid-term industrial development prospect in the region.

Both sides will identify concrete needs for hard and soft infrastructure such as

industrial estate, transportation, energy, telecommunication, human resources,

residence and others from mid-term perspective.

(2) Implementation

Hybrid Industrial Park

A Hybrid Industrial Park may be considered through public-private partnership (PPP).

The State Government of Gujarat will provide an area of land whose legal status, rights

and obligations have been cleared, and infrastructure with sufficient capacity and

quality for industrial activities by Japanese companies. A Japanese service provider may

provide Plug & Play factory, logistics, accounting, HR, government approvals support,

common canteen, commuting transportation service, etc.

This may be facilitated by provision of land for industrial park for Japanese industries

to come and set-up their facilities in the State. To facilitate this, Gujarat Industrial

Development Corporation (GIDC) has identified & reserved land in Sanand-III (Khoraj).

The State Government of Gujarat will continue to support the Mandal Industrial

Township, especially in terms of land acquisition, infrastructure development and the

special incentive package under the “Japan Industrial Township”, among others.

(3) Physical Infrastructure

The State Government of Gujarat will develop key infrastructure.

The investment Promotion Program Loan (Gujarat Investment Promotion Program:

GIPP) by Japan International Cooperation Agency (JICA) will be considered for the

infrastructure development.

c) Bilateral Promotion Activities

Both sides will cooperate on promotional activities for Japanese companies in order to

further increase investment to the State of Gujarat. The activities include, among others,

various services for SMEs, such as providing information, legal consultation, assistance

for acquiring governmental permits and business matching opportunities.

(d) Residential and Commercial Township

The State Government of Gujarat will invite private companies to develop sufficient

residential and commercial facilities under the improved Mandal-Becharaji Special

Area Map and MoC between the State Government of Gujarat and METI , Japan.

1.2 Target area of study

Sanand 3 (Khoraj) Sanand 2

Mandal Industrial Park

HMSI

Suzuki Motor Gujarat

Area Map

( Mandal-Becharaji-Khoraj )

MOC “Japan and India Special Program for Make

in India” In Mandal-Becharaji-Khoraj, Gujarat

4

Methodology

1.3 Methodology and Team

• The following figure shows our whole research process for final report

With Infrastructure

Developing Companies

• Possibility and issues

related to Smart

Infrastructure (SI)

business

Expected Investing

Companies

• Hearing of issues to

expected companies to

invest in the Target

region.

Interview

Data Collection & Analysis

• Acquiring subject

region concerned data

from official and

external sources for

estimating future

figures.

• Forecasting

infrastructure issues by

introducing similar

(past) cases or any

models

Desk Research

With GJ Govt. (GoGJ)Hearing to GoGJ for

infrastructure development

needs and expected issues

With Local Experts

Issues with GoGJ policies

and SIR (Special

Investment Region)

scheme evaluation

With JPN-based firms

• Views of invested

Japanese companies

for subject region

future prospects.

• What makes the

subject region more

comfortable for

business, mainly in

terms of human

resources and

infrastructure

• Any policy-related

issues etc.

Meetings in GJ

With Infrastructure

Developing Companies

• Give feedbacks to

interviewee firms

about GJ visit

• Based on GoGJ

requirements,

hearing on

proposals for

launching smart

infrastructure

proposal.

Interview

With GoGJ

Hearing to GoGJ

opinion to finalize

the content of final

report through the

discussion of

• Items or methods

which SI related

corporates

recommended to

introduce is

feasible or not

• Draft of 10 years

development vision

to hear DOs and

DON’Ts

• What shall/shall not

be included to the

final report

Meetings in GJ

Fact findings (Nov 2017 to Jan 2018) Planning (Jan 2018 to Feb 2018) Final report (March 2018)

Create a vision for upcoming 10 years

• Forecast 10 years growth of Gujarat

and its industry, mainly based on

desk research

• Build up the timeline to reach the

above-mentioned agenda:

when/how to develop infrastructure,

when/how to launch new GoGJ

policy, etc.

Report to METI and GoGJ

Ask SI related firms and GoGJ for...

further discussion in case detailed

information is required for final report

Following up (if any)

5

Team Structure

1.3 Methodology and Team

Mizuho Bank

Mizuho Information & Research Institute

NIKKEN SEKKEI RESEARCH INSTITUTE

・Project Management

・Benchmarking of industrial cluster (Delhi NCR and other countries)

・Future projection of Mandal-Becharaji-Khoraj, Gujarat

・Potential study on smart infrastructure in the area

・Analysis on current development initiative

・10 year vision and roadmap for the targeted area development

・Final report to METI and the state government of Gujarat

Role of Mizuho Bank

・Financial model analysis

・Environment effect analysis

・Study on Energy and Co2 savings

・Study on Business opportunities and effect

Role of Mizuho Information & Research Institute

・Identifying key point for industrial cluster in the area

(HR, Industrial Land, Industrial and basic infrastructure (Road, Water, Electricity, tele

communication) Residence area , Commercial area, logistics and incentives

Role of NIKKEN SEKKEI RESEARCH INSTITUTE

Final Report to METI and the Government of Gujarat on March 2018

Research order

by tendering

6

食

Industrial area and Japanese companies in Mandal-Becharaji-Khoraj

SanandⅢ（GIDC）

SanandⅡ（GIDC）

Mandal Industrial

Estate （GIDC）

Area Map ( Mandal-Becharaji-Khoraj )

7

・2,460 acers (Rs.2,600/㎡)

・Proposed Japanese industrial zone

・Expected to be open from FY2018

MBSIR

・Around 102 k㎡(24,600 acers)

・GIDB approval soon

Johnson

Hitachi

Minda Kose

Other Industrial Estate in India

Neemrana 1,167 acers

Giloth 530 acers

Supa Parner 2,300 acers

One Hub Chennai 1,500 acers

Sri City 2,700 acers

Nagata Auto

Mascot Industrial

Estate（Private）

・86 acers (Rs7,600/㎡)

AGI

Tata Battery

OILES

SH-133 is expanding

from 5.5m wide to 24m

wide(60m 6 lane is

proposed)SH-7 is expanding from

10m wide to 30m wide

(90m 8 lane is proposed)

Railway Connectivity to Suzuki

plant and other Auto hub in the

region

Area Map ( Mandal-Becharaji-Khoraj )

Hitachi Hi-Rel

Mitsui Metal

Unicharm

MORESCO

・Around 5,000 acers (Rs.3,780/㎡)

・DMIC logistic hub

HMSI

Suzuki Motor

Gujarat

Suzuki JIM

食

食

Industrial Estate

Japanese company

JIM

Japanese restaurant

食

食

食

食

・1,235 acers(Rs.2,310/㎡)

*300 acers for phase1

・Japanese Industrial

Tata motor

Ford

Source: Press release respective companies and

other public source

２. Target area development as role model for Make in India

8

2.1 Forecast of industrial area based on passed 10 years development of NRC P.10

2.2 Smart infrastructure requirement P.29

2.3 FDI potential from Japan P.38

2.4 Issues & Proposed Ideas for the Targeted Japanese Investment Area (SIR

framework, Initiatives by Gujarat for Investment, Infrastructure Development)P.50

2.5 Soft and hard infrastructure requirements for Industrialization and

Prediction of Benefits to Japan Companies P.62

2.6 Finance for infrastructure improvement P.85

2.7 Impact on Environment improvement & on society and

Analysis on CO2 reductionP.92

2.8 Advantage of Japanese Companies and Prediction of Benefits to Japan P.113

9

2.1 Forecast of industrial area based on passed 10 years development of NRC

Summary：Haryana’s Rapid Auto Industrialization from 2008 to 2015

10

Haryana Delhi

Japanese Companies (2007 → 2016)

Auto Sector Related Companies(*NIC Code Operational Factories)

Rajasthan Gujarat

Total Companies

Factory 2008 → 2015

4,388→ 6,611 (+50.6%) 6,054→ 8,005 (+32.2%) 2,889→ 2,978 (+3.1%) 14,520 → 17,884 (+23.8%)

736→ 802 (+8.9%) 171→ 243 (+42.1%) 256→ 212 (-17.2%) 384 → 706 (+83.9%)

Workers Engaged 2008 → 2015

607,527→ 744,026 (+22.5%) 351,351→ 487,520 (+38.8%) 126,816→ 122,852 (-3.1%) 1,125,543 → 1,462,206 (+29.9%)

Electricity Consumption 2008 → 2015

3,528,422 → 6,892,848 (+95.4%) 5,537,474 → 9,224,467 (+66.6%) 855,216 → 961,669 (+12.4%) 13,561,857 → 25,554,306 (+88.4%)

Total No. of Persons Engaged

(Increase in population in million as compared to 2001 census population)

170,298→ 242,837 (+42.6%) 15,988→ 50,760 (+218%) 8,131→ 5,004 (-38.5%) 44,519 → 62,596 (+40.6%) Auto Sector-No. of Persons Engaged

(*NIC Code Operational Factories)

[MWh.] Total Electricity Purchased

Auto Sector Related-Electricity Purchased

(*NIC Code Operational Factories)929,994 → 1,896,831 (+131%) 306,309 → 520,639 (+69.9%) 37,022 → 33,439 (-9.7%) 274,702 → 1,087,018 (+296%)

States Population

Population 2001→2011→2017*

[Million]

In 2011,Haryana population has reached to 25.4m, which depicts 4.2m increase during the decade 2001-2011.During 2008 – 2015 2,223 new factories are

established and presence of major Auto Anchors has attracted 802 Auto Sector related companies in total to establish their manufacturing base in Haryana

State.

Similarly, in Gujarat increasing presences of Auto Anchors may also attract establishment of new auto sector related industries in future.

Maruti Suzuki

Honda Motorcycle

Hero Motocorp.

Major

Auto

Anchors

40 → 522 1 → 182 118 → 323 5 → 300

Honda Car India

Tata Motors

Ford

Honda Motorcycle


21.1 → 25.3→ 27.9

(+4.2) (+2.6)

56.5 → 68.6→ 73.9

(+12.1) (+5.3)

13.9 → 16.7→ 21.9(+2.8) (+5.2)

50.7 → 60.3→ 63.5(+9.6) (+3.2)

Gas Consumption 2008 → 2015

Official data is not including gas consumption, it only mentions "Only petroleum products” or “other fuels” consumption. Industries purchase gas from public and private petroleum from related products

manufacturing companies.

Note: *NIC(National Industrial Classification 2008) Codes 3 Digit Data:291,292,293,221,231,272,274,309.

Companies having 100 or more workers & all factories covered under Joint Returns are included by ASI Data. Source: Annual Survey of Industries 2008-2014 Reports

2.1 Visualizing Next 10 Years Development of Target Region based on NCR Industrialization

11

Source: Annual Survey of Industries 2008-2014,

Census of India 2011 11

Summary：Gujarat’s growth from 2021 to 2028 based

Total Factories

Factory 2015→2021*→2028*

Workers Engaged 2015→2021*→2028*

Electricity Consumption 2015→2021*→2028*

Total # of Persons Engaged

[MWh]

Total Electricity Purchased

States Population [Million]

Population 2011→2021*→2028*

Future - Gujarat

25,498 (+42.6%) → 31,788 (+77.7%)

21,984 (+22.9%) → 24,652 (+37.8%)

18,704 (+4.6%) → 19,640 (+9.8%)

2,297,320 (+57.1%) → 2,611,853 (+78.6%)

2,039,194 (+39.5%) → 2,171,184 (+48.5%)

1,649,474 (+12.8%) → 1,494,459 (+2.2%)

49,027,638 (+95%) → 92,542,197 (+269%)

46,457,809 (+85%) → 71,721,625 (+186%)

43,887,981 (+75%) → 54,714,632 (+118%)

Gujarat

59.0

(2011)

17,884

(2015)

1,462,206

(2015)

25,108,465

(2015)

Reference

High

Normal

Low

68.0 (+15.3%) → 73.2 (+24.1%)

66.1 (+12.0%) → 71.2 (+20.7%)

65.7 (+11.1%) → 70.7 (+19.8%)

Assumption – Rate of Increase 2010/11

- 2027/28

High Double of Normal Projection 2.80%

Normal CAGR: 2005/06 - 2010/11 @GJ 1.40%

Low Half of Normal Projection 0.70%

Assumption – Rate of Increase A. 2014/15

- 2020/21B. 2020/21

- 2027/28

HighA. CAGR: 2008/09 - 2011/12 @GJB. CAGR: 2008/09 - 2011/12 @HR 6.50% 3.20%

NormalA. CAGR: 2008/09 - 2014/15 @GJB. CAGR: 2011/12 - 2014/15 @RJ 3.50% 1.65%

LowA. CAGR: 2011/12 - 2014/15 @GJB. CAGR: 2011/12 - 2014/15 @GJ 0.70% 0.70%


- 2020/21B. 2020/21

- 2027/28

HighA. CAGR:2005/06 - 2008/09 @GJB. CAGR: 2011/12 - 2014/15 @GJ 8.25% 1.85%


LowA. CAGR: 2011/12 - 2014/15 @GJB. CAGR: 2008/09 - 2011/12 @HR 1.85% -1.40%


- 2020/21B. 2020/21

- 2027/28

HighA. CAGR: 2008/09 - 2011/12 @GJB. CAGR: 2011/12 - 2014/15 @GJ 12.10% 9.50%


LowA. CAGR: 2011/12 - 2014/15 @GJ

B. Half of Normal Projection 9.50% 3.20%

High

Normal

Low

High

Normal

Low

High

Normal

Low Gas Consumption projection

Its challenging to predict gas consumption data as most of the companies in India purchase industrial gas from public & private gas companies. In India gas is mainly used in power generation and most

companies uses diesel for power generation by generator & uses state power supply. Therefore, prediction of gas consumption is exempted as in future there is less possibility of gas utilization in target

region by companies.

Gujarat population and industrial sector data(factories, workers, electricity) is expected to have strong growth.

Based on past Industrial data of NCR region and Gujarat, initially large scale industrial investment leads to ‘growth phase’ and as investment is peaked out & slower investment

depicts the ‘steady growth phase‘ of industrialization.

In Gujarat, new factory setup by automobile related companies targeting Suzuki and Honda 2 wheeler shall depict ‘growing phase‘ and by around 2021, reaching to the full

production capacity by both companies, investment by new companies shall show down and subject region shall be in ‘steady growth phase’. Below are forecast data based on

above assumption.

Note: *NIC(National Industrial Classification 2008) Codes 3 Digit Data:291,292,293,221,231,272,274,309.

Companies having 100 or more workers & all factories covered under Joint Returns are included by ASI Data.


Source: Draft Revised Regional Plan 2021 NCR,2013 Report, Gujarat Water

Summit-2014, DMICDC Report,2015, Sub Regional Plan for Haryana Sub-

Region of NCR-2021,2010 Report.

Summary：Future demand in water and traffic in Gujarat

In future, water demand is expected to increase along with the continuous strong industrial growth in Gujarat.

There is steady growth of overall traffic and remarkable increase in percentage of freight vehicles traffic on major roads from

Ahmedabad - subject area - major ports.

Analyzing the past data, proportion of freight vehicles traffic is high on Haryana’s NH-71 connected with Industrial cluster.

Similarly, proportion of freight vehicles traffic on major roads shall increase within the subject area.(refer page24)

Water Demand [Million m3/day]

Water Demand

Traffic Volume

Annual Average Daily Traffic

[Vehs/d]

Freight Traffic Penetration

[%]

2010* 2015* 2020*

Low

23,611

20,214

18,523

High

Normal

31,333 (+7,722)

26,795 (+6,581)

22,051 (+3,528)

40,841 (+17,230)

34,950 (+14,736)

26,660 (+ 8,137)

52,325 (+28,714)

44,035 (+23,821)

30,839 (+12,316)

Low

45.6%

41.3%

35.3%

High

Normal

47.3% (+1.7%)

42.7% (+1.4%)

35.5% (+0.2%)

48.7% (+3.1%)

43.8% (+2.5%)

35.9% (+0.6%)

51.9% (+6.3%)

45.9% (+4.6%)

36.5% (+1.2%)

2025*

Gujarat State Hwy SH-947 (estimated) National Highway-71

2007 2013

4,183 6,875 (+2,692)

68.0% 67.5% (- 0.5%)

2005 2021*

835

15,826

1,536

18,943

industry

Overall

DELHI NCR Gujarat

2005

5.9

Wh

ole

GJ

MB

SIR

industry

Overall

2010

2040*

95.5

231.5

35,000

2050

57,000

2025

40,000

12


13

SH-133

MBSIR Industrial development shall initiate the social

& economic development of the region and shall

require robust infrastructure, connectivity and

transportation system within MBSIR and in

neighboring regions such as Viramgam-Becharji(SH-

7), Becharaji-Mehsana(SH-19),Kadi- Vithalapur(SH-

133) etc to support the residential population,

comminuting employees and managing the increase

in traffic.

In Gujarat Budget 2018-19, has provision of Rs.1346

Crore to strengthen road infrastructure and to make

roads and bridges. This includes Four laning of

Viramgam – Sitapur – Becharaji Road(SH-7).

SH-947

SH-7

SH-19

SH-133

SH-7 is expanding from 10m wide

to 30m wide(90m 8 lane is

proposed)

SH-133 is expanding from 5.5m

wide to 24m wide(60m 6 lane is

proposed)

BECHARAJI

MANDAL

Population Category Yr 2040

Residing Population in

MBSIR755,000

Village Population 26,000

Floating Population 126,000

Total Population

Supported by MBSIR907,000

Population

(907,000 by 2040)Industry &

Commercial Building

Residential-Schools &

Collages

- Professional

Education &

Training

CentreHospitals

+

Recreation, Sports

& Entertainment

Supporting Social Infrastructure

ParksTrain/Bus

Stations

Cluster-A Village Population

6,249 ->11,973

Cluster-B Village Population

7,211 -> 13,817

MISIR Population

(Year 2011->2040)

Mahsana District529,816

BECHARAJI District99,588

KADI District341,407

Viramgam District193,283

100 km150 km200 km250 km

MANDAL District70,346

Source: MBSIR Report Feb 2017,

Census of India 20111 Crore Rs = 10,000,000 Rs

Khoraj

Summary： Road expansion status


①Population：State wise population in NCR and Gujarat (Actual)

14

Gujarat population has increased by 9.7m during the decade 2001-2011 and population of 60.4 m for year 2011 depicts 4.9% of the

total India’s population. Similarly, Rajasthan, Haryana and Delhi population has increased by 12.1m,4.2m & 2.9m respectively.

According to Census of India 2001,Gujarat population is projected to be increased by 25.4% from 50.7 million in year 2000-01 to

63.5 million in year 2016-17.

Unit:million

13.9 14.3 14.7 15.1 15.6 16.0 16.5 17.0 17.4 17.918.5

19.0 19.5 20.1 20.7 21.3 21.9

21.1 21.6 22.0 22.5 22.9 23.3 23.7 24.2 24.6 25.025.4 25.9 26.3 26.7 27.1 27.5 27.9

56.5 57.7 58.8 60.0 61.1 62.3 63.4 64.5 65.7 66.8 67.8 68.9 69.9 71.0 72.0 72.9 73.9

50.7 51.6 52.4 53.3 54.1 55.0 55.8 56.6 57.4 58.2 59.0 59.8 60.6 61.3 62.1 62.8 63.5

2.0% 2.0% 2.0% 1.9% 1.9%

1.9% 1.…1.8%

1.8%1.7% 1.7% 1.7% 1.6%

1.6%1.5%

1.5%

0%

1%

1%

2%

2%

3%

0

20

40

60

80

100

120

140

160

180

200

2000-01 2002-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12E

2012-13E

2013-14E

2014-15E

2015-16E

2016-17E

Delhi Haryana Rajasthan Gujarat Gujarat(Growth Rate)

4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 5.0% 5.0% 5.0% 5.0% 4.9%● Gujarat Population Percentage to total India’s Population

2001/2011 Census Forecast

(60.4)

(68.6)

(25.3)

(16.7)

Decadal Growth 2001-2011 : 19.2%



Decadal Growth 2001-2011 : 21%

(+9.7)

(+12.1)

(+4.2)

(+2.9)

(+12.8)

(+17.4)

(+6.7)

(+8.04)

Source: Census of India, 2001 & 2011

(Population change from Census 2001)

(Census 2011 Actual Population)


①Population in Gujarat w/ multiple CAGR scenario (Projection)

15

59.0

61.562.3

63.163.8

64.665.3

66.066.7

67.468.0

68.669.3

69.970.6

71.2

72.2

73.2

59.059.8

60.661.3

62.162.8

63.564.2

64.965.5

66.166.8

67.468.0

68.669.3

70.2

71.2

59.059.4

60.160.9

61.662.4

63.163.8

64.465.1

65.766.3

66.967.5

68.168.8

69.7

70.7

57

59

61

63

65

67

69

71

73

75

Gujarat(High) Gujarat(Normal) Gujarat(Low)

Unit : million

CAGR 2005/06 - 2010/11 Gujarat

High Double of Normal Projection 2.8%

Normal Increase Percentage 1.4%

Low Half of Normal Projection 0.7%

*Population till 2026: 2001/2011 Census of India Forecast Population

*Population from 2027 :Based on 2011-15 CAGR

2001/2011 Census Forecast

Gujarat population is projected to reach 71.2m by the year 2028, representing increase of population by 12.2m(+20.7%) from year

2011 to 2028.

Similarly ,in case of higher projection, the population is expected to reach 73.2m by the year 2028, showing increase of population

by 14.2m (24.1%) from year 2011 to 2028. In case of lower projection, the population is expected to reach 70.7m by the year 2028,

showing increase of population by 11.7m (19.8%) from year 2011 to 2028.

Source: Census of India, 2001 & 2011


②Factory: State wise population in NCR and Gujarat(Actual)

16

3.3 3.3 3.2 2.9 2.8 2.9 2.9 2.9 2.9 3.0

4.3 4.4 4.7 4.4 4.5

6.0

4.8 4.95.3

6.66.0 6.1 6.3 6.1

6.6

8.27.6 7.9 7.9 8.0

14.1 14.315.1

14.515.3

21.3

17.518.2 18.1 17.9

-

5

10

15

20

25

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Delhi Haryana Rajasthan Gujarat

2014-15

NCR:17,594 Factories

Gujarat :17,884 Factories

Gujarat industrial sectors is dominated by industrial sectors such as petrochemicals, chemicals, pharmaceuticals, cement and

ceramics, dairy, gems & jewellery, textiles.

In 2014/15, Gujarat State had 17,884 registered factories, whereas NCR region(Delhi, Haryana, Rajasthan) all together had 17,594

factories, which shows 290 factories lesser than Gujarat State.

Comparing 2005/06 to 2014/15, number of factories registered in Gujarat increased by 27.4%.

*2005~2007 : Registered Factories(Operational Factories not

included in ASI Survey from 2005 – 2007.

*2008/09 Onwards : Operational Factories data only)

Source: Annual Survey of Industries 2008-2014 Reports

Unit : ‘000


17Source: Annual Survey of Industries 2008-2014 Reports

10.0

15.0

20.0

25.0

30.0

35.0

②Factory: Gujarat State factories (Projection)

‘０００ unit

Gujarat 10 year forecast of operational factories is based on NCR past data. The projection scenario depicts 37.8% increase in

next 13 years.

Respective increase in growth rate is applied to two phase i.e from 2015/16～2020/21 considered to be ‘growing phase’,

2021/22 - 2026/27 considered to be ‘steady growth phase'. Further, along with ‘growing phase’ and ‘steady growth phase, middle

scenario has also been forecasted as below.

2014/15 Gujarat:

17,884 : actual

Gujarat Registered Factories Growth Rate

37.8% in 13 years

2027/28 Gujarat (Estimate)

31,788 : Highest

24,652 : Normal

19,640 : Lowest


- 2020/21

B. 2020/21

- 2027/28

High A.CAGR: 2008/09 - 2011/12 @GJ

B. CAGR: 2008/09 - 2011/12 @HR6.50% 3.20%

NormalA. CAGR: 2008/09 - 2014/15 @GJ

B. CAGR: 2011/12 - 2014/15 @RJ3.50% 1.65%

Low A.CAGR: 2011/12 - 2014/15 @GJ

B. CAGR: 2011/12 - 2014/15 @GJ0.70% 0.70%


②Factory: State wise employment in NCR and Gujarat(Actual)

13 13 13 13 12 12 12 12 11 12

40 43

51

61 58

55 58 57

61

74

29 31

37 35 39

43 47

44 47 49

88.8

98.4

104.5

112.6115.9

129.5

138.4 136.4 137.3

146.2

-

20

40

60

80

100

120

140

160

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15


In 2014/15, number of person engaged in factories in Gujarat State was approx.1.4m. Whereas NCR

region(Delhi, Haryana, Rajasthan) all together had approx.1.3m persons, which shows around 10,000 persons

lesser than Gujarat State.

Comparing 2005/06 to 2014/15, number of person engaged in factories in Gujarat increased by 64.8%.

Source: Annual Survey of Industries 2008-2014 Reports18

Unit: million


100.0

150.0

200.0

250.0

300.0

19

‘0000 employee

2014/15 Gujarat:

1,462,206 : actual

Gujarat Employment Growth Rate

48.5% in 13 years

②Factory: Gujarat State employment generation(Projection)


Similar to operational factory data, Gujarat 10 year forecast of employment generation is based on NCR past data.

Respective increase growth rate is applied to two phase i.e from 2015/16～2020/21 considered to be ‘growing phase’,2021/22 -

2026/27 considered to be ‘steady growth phase'.

The projection scenario depicts 48.5% increase in next 13 years.

2027/28 Gujarat (Estimate)

2,611,853 : Highest

2,171,184 : Normal

1,494,459 : Lowest


- 2020/21

B. 2020/21

- 2027/28

High A. CAGR:2005/06 - 2008/09 @GJ

B. CAGR: 2011/12 - 2014/15 @GJ 8.25% 1.85%

NormalA. CAGR: 2005/06 - 2014/15 @GJ

B. CAGR: 2011/12 - 2014/15 @RJ 5.70% 0.90%

Low A. CAGR: 2011/12 - 2014/15 @GJ

B. CAGR: 2008/09 - 2011/12 @HR 1.85% -1.40%


②Factory: State wise electricity consumption in NCR and Gujarat(Actual)

Unit : Th.Kwh

855,2

18

870,7

36

688,3

92

746,5

25

886,8

41

793,4

52

945,3

53

3,5

28,4

22

4,0

18,8

25

5,3

43,1

48

4,6

31,9

60

5,4

15,5

26

6,2

99,2

45

6,8

07,6

23

5,5

37,4

74

5,8

91,0

01

8,8

65,8

99

7,5

99,3

36

8,9

26,4

60

9,0

10,9

67

9,1

55,6

72

13,5

61,8

57

14,0

16,4

36

15,0

90,4

81

19,1

13,6

16

21,1

33,3

13

23,3

46,2

25

25,1

08,4

65

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15


As increase in number of factories in Gujarat, the consumption of electricity has been steadily increasing over

the period of time.

Comparing 2008/09 to 2014/15, Electricity consumed in 2014/15 has increased by appox.85%.

Source: Annual Survey of Industries 2008-2014 Reports20


20.0

40.0

60.0

80.0

100.0

21

Million MWh

2014/15 Gujarat:25,108,465 MWh : actual

②Factory: Gujarat State electricity consumption(Projection)


Similar to operational factory data, Gujarat 10 year forecast of electricity consumption is based on NCR past electricity

consumption data.

Respective increase growth rate is applied to two phase i.e from 2015/16～2020/21 considered to be ‘growing phase’,2021/22 -

2026/27 considered to be ‘steady growth phase'.

The projection scenario depicts less than 3 times steep increase in next 13 years.

Gujarat Electricity Consumption Growth

2.86 times in 13 years

2027/28 Gujarat(Estimate)

92,542,197 MWh : Highest

71,721,625 MWh : Normal

54,714,632 MWh : Lowest


⑤NCR Water Demand 2005 & 2021

22

NCR Region Total Water Supply(MCM/Year) 2005

States Domestic Industrial Agriculture Total

Haryana 227 68 4,929 5,224

Rajasthan 17 4 1,855 1,876

NCT-Delhi 1,586 331 366 2,283

1,830 403 7,150 9,383

NCR Region Total Water Demand(MCM/Year) 2005

States Domestic Industrial Agriculture Fire Fight Total

Haryana 460 14 8,662 5 9,141

Rajasthan 122 26 4,098 1 4,247

NCT-Delhi 1,588 795 - 5 2,438

2,170 835 12,769 11 15,826

NCR Region Total Water Demand(MCM/Year) 2021 Water

Deficit

in 2021States Domestic Industrial Agriculture Total

Haryana 789 286 8,700 9,775 -4,551

Rajasthan 194 80 4,249 4,523 - 2,647

NCT-Delhi 1,268 1,170 - 2,438 -115

2,251 1,536 13,223 18,943 -9,560

In 2005, Industrial water demand in Haryana was 14 MCM/Year,

which is predicted to increase by 20 times to 286 MCM/Year by year

2021.

Source: Draft Revised Regional Plan 2021 NCR,2013 Report Gujarat Water Summit-2014

MCM: Million cubic meter

BCM : Billion cubic meter

3540

57

0

10

20

30

40

50

60

FY2010 FY2025 FY2050

Gujarat Water Demand Projection(2014)BCM

NCR

*Gujarat Water Summit-2014


NCR Region:

Delhi, Haryana,

Rajasthan etc

23

MBSIR Total Water Demand(MLD/Year) 2040

NO# Land Use Category Cluster A Cluster B

1. Industrial Area 42.77 14.28

2. Logistics 4.93 4.5

Knowledge & IT 16.59 0

3. Population(Resident) 62.87 42.56

4. Population(Floating) 3.38 2.29

5. Recreation, Sports & Entertainment 0.82 0.06

6. Fire Fighting 3.72 2.52

7 Sub-Total (MLD) 135.08 66.21

8 15% Water Loss 20.26 9.93

9 Total Demand with Loss(MLD) 155.34 76.14

10 Total Water Demand in A & B 231.48

Present and Future Water Demand GAP (MLD/Year) 2040

ClusterWater Demand

(Present)

Future Water

Demand GAP(MLD)

Cluster A 5.442 155.34 149.9

Cluster B 0.43 76.14 75.71

Total MLD 5.872 231.48 225.6

⑤MBSIR Water Demand 2005 & 2021

Source: : MBSIR Report Feb 2017.


Average Annual Growth rate on National Highway-8

(Kherki Daula Toll Plaza (42 Km)

Year Car Bus Truck MAV LCVTotal

Traffic

Traffic

Growth

Rate(%)

Freight

Traffic

(%)

Freight

Traffic

Growth

Rate

(%)

2007 22,860 2,863 8,679 1,517 6,529 42,448 - 39.40% -

2013 23,814 2,566 8,884 2,739 12,047 50,050 17.91% 47.29% 41.52%

Growth Rate

(2007-2013)0.68 -1.81 0.39 10.35 10.75 - - - -

Average Annual Growth Rate on National Highway-71

Year Car Bus2-3 Axle

TruckMAV LCV

Total

Traffic

Traffic

Growth

Rate(%)

Freight

Traffic

(%)

Freight

Traffic

Growth

Rate

(%)

2007 1,197 140 2,043 638 165 4,183 - 68.04% -

2013 2,002 236 1,803 1,600 1,234 6,875 64.36% 67.45% 62.93%

Growth Rate

(2007-2013)8.95 9.11 -2.06 16.56 39.85 - - - -

NH-8 Traffic Data from year 2007 to 2013 indicates:

High annual growth of commercial goods vehicles for MAV 10.35% and

LCV 10.75%

Passenger vehicles have shown minor growth and traffic is almost

similar to in year 2007 & 2013.

Traffic Data from year 2007 to 2013 indicates:

High annual growth of commercial goods vehicles for MAV 16.56% and

LCV 39.85%. 2-3 Axle Trucks has shown negative growth rate.

Passenger vehicles and public transport vehicles(Bus) have shown

8.95% and 9.11% growth respectively.

MAV : Multi-Axle Vehicles

LCV : Light Commercial Vehicle

National Highways – NH-8 and NH-71

NH-8NH-71

Delhi

⑥Traffic Data

Source: DMICDC Report,2015,

Sub Regional Plan for Haryana Sub-Region of NCR-2021,2010 Report. 24


RoadLocation

No#Section Locations

Passenger Vehicles Freight Vehicles Total

Vehicle

Total

PCUs2W Autos Car/Taxi Mini Bus Bus LCV HCV MAV

National Highways

NH-8 ▲1 Delhi – GurgaonDundahera Toll

Plaza (24 Km)80,526 1,889 2,62,121 ,1,150 7,305 9,897 8,632 2,772 3,74,292 3,80,912

Old NH-8 ▲10 Delhi – Gurgaon Kapashera 16,657 1,840 20,698 262 2,043 1,804 1,212 118 44,634 66,220

NH-8 ▲3 Delhi – JaipurKherki Daula Toll

Plaza (42 Km)10,615 3,323 23,517 5,169 2,223 11,307 9,675 2,533 68,363 1,01,371

NH-8 ▲4 Kukrola –Kakaoria Bilaspur 62 Km 4,589 150 18,968 2,840 1,661 6,626 11,011 3,866 49,712 89,606

NH-8 8 Delhi – JaipurShahjahanpur Toll

Plaza(117 Km)3,785 108 7,206 1,087 1,172 2,719 7,563 5,805 29,445 66,702

NH-71 7 Rewari - Bawal Bhanwari 5,872 1,839 3,210 750 380 515 662 345 13,572 14,184

NH-71 ▲5 Jhajjar - Rewari Chandpur 3,133 250 1,971 517 206 881 1,804 1,739 10,500 19,478

NH-71 B 6 Rewari-Dharuhera Near Rewari Town 11,366 1,877 5,041 731 580 321 273 227 20,417 17,394

NH-71 B 2 Taoru - Daruhera Bhiduwas 2,645 262 1,549 430 31 830 3,776 699 10,223 19,376

NH -236 11 Delhi-Gurgaon MG Road 31,326 234 66,305 384 1,052 2,224 3,082 45 1,04,652 98,312

State Highway

SH-26 9 Patudi – Rewari Nurpur Village 3,142 203 1,521 449 85 274 383 237 6,294 6,625

SH-26 3 Rewari -Pithrawas RajpuraIstamrar 4,543 732 2,918 954 452 377 1,156 444 11,574 14,259SH-26 7 Wajirpur - Pataudi Jatloa 3,425 303 1,672 413 114 407 357 210 6,903 7,075SH-13 8 Gurgaon - Sohna Bhondsi 10,244 1,519 10,126 972 657 1,108 3,753 658 29,037 35,592SH-52 1 Bawal - Mundawar Tihara 3,852 159 559 235 112 114 65 240 5,334 4,658

Other Major Roads

Gharhi bolni

Road2 Rewari - Chhuriawas Dhaliawas 4,619 505 2,296 483 175 150 243 336 8,807 8,582

Rewari

Mahenderga

rh Road

4 Rewari - Mundi Aaliawas 4,104 436 1,852 750 189 226 72 295 7,924 7,539

MDR 5 Rauhrai - Jatusana Katopuri 1,499 53 750 281 54 234 709 200 3,778 5,368

Rewari lokri

Road6 Pataudi - Rewari Meerpur 1,791 41 214 143 15 44 32 68 2,348 1,805

AADT : Average Annual Daily Traffic

PCUs : Passenger Car Units

NH-8 Dundahera Toll Plaza (24 Km) from Delhi-Gurgaon: has observed AADT with 3,74,292 vehicles (3,80,912 PCUs), followed by Kherki Daula Toll

Plaza (42 Km) from Delhi – Jaipur with 68,363 vehicles (1,01,371 PCUs). Highest AADT at NH-8 Dundahera Toll Plaza (Km 24) is due to following

reasons:

Additional intra Gurgaon traffic volume

High amount of traffic interaction between industrial areas of Manesar and residential areas of Gurgaon and Delhi.

NH-8 Bilaspur Toll Plaza(62 Km) from Kukrola –Kakaoria has observed as 49,712 vehicles (89,606PCUs) followed by Old NH-8 (Kapashera) from

Delhi – Gurgaon with 44,634 vehicles (66,220 PCUs).

DMICDC Report 2015, Primary survey 2013

⑥Vehicle Category wise Average Annual Daily Traffic on Major Road Sections

Source: DMICDC Report,2015.25


⑥Vehicle Category wise Average Annual Daily Traffic on Major Road Sections

2626

NH-8 ▲1

▲10

▲3

▲4

Dundahera Toll

Plaza (24 Km)

Delhi – Gurgaon

Old NH-8

Delhi – Gurgaon

Kherki Daula

Toll

Plaza (42 Km)Bilaspur (62 Km)

Kukrola –Kakaoria

Delhi

To Jaipur

Rewari

Jhajjar

▲5NH-71

Jhajjar - Rewari

▲7NH-7

Rewari - BawalBawal

TVC : Traffic Volume Count Survey Source: DMICDC Report,2015.


⑥Ahmedabad - Viramgam Vehicle Category wise Average Annual Daily Traffic on Major Road Sections

27

Average Daily Volume(ADT in VEHs)

Roa

d

Locatio

nSection

Passenger Vehicles Freight VehiclesAgriculture

VehiclesSlow Vehicles Others

ADT

(Vehicles)2W

Auto

Ricksha

w

Car/

Jeep(

Old

Tech)

Car/

Jeep

(New

Tech)

Mini

Bus

Standa

rd Bus

LCV/

Tempo

2-Axle

Trucks

3 Axle

Trucks

M-Axle

Truck

Tractor

s with

Trailer

s

Tractor

s

without

Trailer

s

CycleCycle

Ricksh

aw

Animal

Drawn

Vehicl

es

Others

SH

947○

Ahmeda

bad-

Viramga

m Road

3,911 2,137 512 2,680 261 929 2,022 3,650 2,174 595 399 296 706 109 103 39 20,823

Annual Average Daily Volume(AADT in VEHs)

Roa

d

Locatio

nSection

Passenger Vehicles Freight VehiclesAgriculture

VehiclesSlow Vehicles Others

AADT

(Vehicl

es)

AADT

(PCU)2W

Auto

Ricksha

w

Car/Je

ep(Old

Tech)

Car/Jee

p

(New

Tech)

Mini

Bus

Standa

rd Bus

LCV/

Tempo

2-Axle

Trucks

3 Axle

Trucks

M-Axle

Truck

Tractor

s with

Trailer

s

Tractor

s

without

Trailer

s

Cycle

Cycle

Ricksh

aw

Animal

Drawn

Vehicl

es

Others

SH

947○

Ahmeda

bad-

Viramga

m Road

3,520 1,924 460 2,412 505 836 1,820 3,285 1,956 535 359 267 635 98 93 35 18,740 34,421

Traffic Composition 18.8% 10.3% 2.5% 12.9% 2.7% 4.5% 9.7% 17.5% 10.4% 2.9% 1.9% 1.4% 3.4% 0.5% 0.5% 0.2% 100%

SH-7

SH-947

SH-7 is expanding from

10m wide to 30m wide


SH-133

SH-133 is expanding from

5.5m wide to 24m wide


SH-947 Ahemedabad – Sanad – Viramgam has observed AADT with 18,740 vehicles and freight vehicles dominates traffic volume by 40.5%.

High freight vehicles are due concentration of industries of various sectors like automobile (TATA, Ford & automobile components suppliers), FMCG consumer products

(Nivea,Inbisco), heavy engineering products(Alstom), Steel products(Mitsui Kinzoku,Baosteel) and chemical manufactures etc in Sanand I & II Industrial Estates.



Source:

Gujarat State Road Development Corporation,2003 Report(Survey Data:2001)Integrated Mobility Plan for Greater Ahmedabad Region Report


⑥Ahmedabad - Viramgam Vehicle Category wise Average Annual Daily Traffic on Major Road Sections

28

Ahmedabad - Viramgam - Projected Average Daily Volume(ADT in VEHs) by Alternative Consideration

RoadSec

tionYear

Passenger Vehicles Freight VehiclesAgricultural

Vehicles Slow Vehicles

AADT

(Vehicl

es)

Traffic

Growth

Rate(%

)

Freight

Traffic

(%)

Freight

Traffic

Growth

Rate

(%)

AADT

(PCU2W

Auto

Ricksh

aw

Car/Je

ep

(Old

Tech)

Car/Je

ep

(New

Tech)

Mini

Bus

Standa

rd Bus

LCV/

Tempo

2-Axle

Trucks

3 Axle

Trucks

M-Axle

Truck

Tractor

s with

Trailers

Tractor

s

without

Trailers

CycleCycle

Ricksh

aw

Animal

Drawn

Vehicle

s

Others

SH

-94

7 A

hm

ed

abad-V

iram

gam

Ro

ad

Hig

her

Gro

wth

2010 4,789 2,268 543 3,045 564 978 2,229 4,226 2,583 723 419 311 699 101 95 40 23,611 - 41.3 - 43,236

2015 6,717 2,786 667 4,075 638 1,162 2,872 5,790 3,657 1,052 507 367 787 104 98 46 31,333 32.71 42.7 36.98 57,538

2020 8,989 3,422 819 5,454 708 1,347 3,631 7,748 5,034 1,490 605 449 886 107 101 53 40,841 30.35 43.8 33.89 75,322

2025 11,472 4,064 973 6,964 785 1,561 4,590 10,369 6,930 2,109 722 536 978 110 104 60 52,325 28.12 45.9 34.04 98,212

No

rma

l G

row

th

2010 2,771 1,195 983 3,058 761 1,343 1,554 4,564 2,397 703 193 130 500 20 10 34 20,214 - 45.6 - 40,184

2015 3,887 1,468 1,207 4,092 859 1,595 2,002 6,253 3,385 1,024 233 157 563 20 11 39 26,795 32.56 47.3 37.38 53,663

2020 5,201 1,804 1,483 5,476 953 1,849 2,531 8,368 4,660 1,449 278 187 634 21 11 45 34,950 30.43 48.7 34.30 70,468

2025 6,638 2,142 1,761 6,989 1,058 2,144 3,200 11,198 6,415 2,052 332 223 700 21 11 51 44,035 25.99 51.9 34.44 92,245

Lo

w G

row

th

2010 4,377 2,160 403 2,114 427 719 1,580 2,758 1,638 461 400 297 686 100 95 38 18,253 - 35.3 - 31,283

2015 5,560 2,497 475 2,596 472 825 1,889 3,339 2,024 579 458 340 754 103 97 42 22,051 20.81 35.5 21.66 37,477

2020 6,830 2,886 585 3,305 527 959 2,322 4,058 2,476 728 519 385 829 105 99 47 26,660 20.90 35.9 22.39 45,092

2025 8,112 3,257 677 3,789 557 1,046 2,629 4,756 2,985 884 587 436 898 107 100 51 30,839 15.68 36.5 17.42 52,213

* Projected Traffic data is based on System of systems Method with no imposition of road user charges assumption)

Haryana

Average Annual Growth rate on National Highway-8

(Kherki Daula Toll Plaza (42 Km)

Year Car Bus Truck MAV LCVTotal

Traffic

Traffic

Growth

Rate(

%)

Freight

Traffic

(%)

Freight

Traffic

Growth

Rate

(%)

2007 22,860 2,863 8,679 1,517 6,529 42,448 - 39.40

2013 23,814 2,566 8,884 2,739 12,047 50,050 17.91 47.29 41.52

Growth

Rate

(2007-

2013)

0.68 -1.81 0.39 10.35 10.75 - - - -

Average Annual Growth Rate on National Highway-71

Year Car Bus2-3 Axle

TruckMAV LCV

Total

Traffic

Traffic

Growth

Rate(%)

Freight

Traffic

(%)

Freight

Traffic

Growth

Rate

(%)

2007 1,197 140 2,043 638 165 4,183 - 68.04 -

2013 2,002 236 1,803 1,600 1,234 6,875 64.36 67.45 62.93

Growth

Rate

(2007-

2013)

8.95 9.11 -2.06 16.56 39.85

In future, SH-947 Ahmedabad – Sanand – Viramgam traffic volume will be significantly dominated by freight vehicles due

to develoment of new industrial estates like Khoraj (Sanand-III,Mandal & Becharaji region) and potential of investment by

new automobile component manufacturers in same region.Further, this road also connects to major ports in Gujarat State.

Source: Gujarat State Road Development

Corporation,2003 Report(Survey Data:2001)




29

2.2 Smart infrastructure requirement

30

Smart Infrastructure for further development


As per interviews among 1) GJ government, 2) Operation Japanese company in S.M.B., 3) Industrial Service

providers, we identified below services and infrastructures for further development of the area

6 Focus areas identified during study

Required services and

infrastructuresFuture demand Details

Industrial estate Japanese Industrial Estate

The number of industrial parks, both GIDC and private owned, in SMB area is

limited. In order to accelerate FDI from Japan and support investment by Japanese

companies in future, there is further need and demand for Japanese industrial

parks.

Mobility and Security

Distributed energy networkSmart Energy

Although Electricity generation in Gujarat is surplus and Power situation is better compared

to many other Indian states, considering Indian Govt.’s impetus towards Electric Vehicles, a

eco-friendly system of virtual power plants utilizing Electric Vehicles (EV) is proposed to

reduce dependency of fossil fuels.

Traffic information platform

Due to limited coverage by public transport, companies arrange means of

transportation for workers and companies deal with issues such as traffic accidents

and security. Safe, secure & eco friendly transportation system is desirable.

Water Treatment

Freight railway networkLogistics

Automobile production capacity is expected to expand very rapidly in future in

S.M.B. region. Appreciate Gujarat Govt.’s efforts in widening the road situation in

S.M.B. area. However, depending entirely on trailers for transportation of cars is

inefficient and enhanced system using both rail & road freight system is necessary.

Centralized Water treatment

system

According to Gujarat’s Zero discharge regulation, currently, localized waste water treatment

by various industries is preferable. With higher number of factories becoming operational,

investments by Japanese companies with state of the art Waste water treatment

technologies that offer centralized waste water treatment services in S.M.B. is desirable.

Vocational training instituteIndustrial Human Resources

At S.M.B., around 200,000 skilled resources will be needed for just the automobile

industry. To meet the huge demand, in addition to programs conducted by Japan

India Institute of Manufacturing (JIM), further complementary efforts are required.

31

Japanese Industrial Estate with high-level services

Source: METI report in 2016


31

Enhancing Japanese FDI by creating Japanese Industrial Estate with high-level services

Japanese Industrial Estate with high-level services Services provided by Industrial estate in other countries

Hybrid infrastructure land

development

More

attractive to

Japanese

Investors

Concept:

Development of infrastructure and estates with

Attractive (or cost effective) functions

For example, Ready-built Factory, Japan Desk,

Common infrastructure (Water treatment, energy

management system), Business development

support, Employ support, hotels and incentives

Benefit:

With soft and hard infrastructure, it would become

competitive estate for investors

Services provided by Industrial estate

Vietnam Indonesia

EstateName

Japanese SMEs Center

Thang Long Industrial Park

Japanese SMEs Center

Daiwa Manunggal

industrial park

AreaDong NaiProvince

Hung Yen Province

Jakarta Bekasi

JapaneseJapan Desk

◎ ◎ ◎ ◎

Customoffice

Inside Inside Inside Inside

Transportation service

◎ ◎ ◎ ◎

Single windowBusiness service(admin, approvalsupport, incorporation)




Other serivces

CommonCafeteria

◎ ◎ ◎ ◎

Residence ◎ ◎ ◎ ◎

TrainginVocational training

center(Local Government)

Vocational training center

(private company)


(private company)


(private company)

CONCEPT:

Connected grid system to reduce the loss of energy with

• Metering device to measure exact Demand and Supply

• Storage infrastructure to balance Demand-Supply gap

• Software to balance the demand, supply & storage on grid level

• Small scale power generation & storage by utilizing EVs & VPPs

Requires Smart Integrated Power Grid – Connecting EVs to Virtual Power Plant (Power generation and

Storage) for efficient energy utilization.

State-of-the-art efficient energy system aligned with EVs and renewable energy policies of government.

“Connected Power Grid” as a countermeasure

Smart Integrated Power Grid

BENEFIT:

• Flexible to accommodate with future increasing demand instead of depend on costly larger scale power generation plants.

• Eco-friendly and sustainable concept.

Public

Transport

（LRT, BRT）

Renewable

Energy

(PV etc.)

Industrial ParkResidence

School

HospitalRetail

Office

Smart Meter +EMS

Distributed

Energy

Network

Smart Meter+EMS

EV

Station

EV

Station

Renewable

Energy

(PV etc.)

Main Grid

VPP - Virtual Power Plant

Such as Rooftop PVs

India plans many

Mega-class PVs


32Source : Compiled by Mizuho Bank Ltd, based on NIKKEN SEKKEI

RESEARCH INSTITUTE Report

33

CONCEPT:

• Upgrading ICT-integrated Bus service with wireless devices for each bus to assist drivers

• Ticketing or Fare-collection system (IC or cellular phone connection)

• Software to optimize operation by analyzing commuters data

ICT for Bus Rapid Transit – Upgrading BTR system by used of ICT system

ICT utilization beyond BRT as mode of cash less payment technology throughout the city.

“Bus Rapid Transit” as a countermeasure

ICT for Bus Rapid Transit

BENEFIT:

• Increasing reliability and punctuality by optimization BTR operation.

• Promoting utilization of public transportation system is considered to be eco-friendly and shall contribute to environmental issues.

• In addition to IC utilization in BRT or Metro, encouraging broader applicability through employee ID, shopping in town.

1ST Downtown 3 min delayed

2ND Downtown 10 min on time

Mobile (NFC)Transit IC

Data Collection

for multiple use

Passenger information system

(Status Update)

BRT Drivers

Management

Automated Ticket Gate

(Automated Toll Collection)

Operation Optimization

e.g. Headway Optimization

$ $ $

Daily Use

(Payment by Transit IC)


Source : Created by Mizuho Bank Ltd,

34

CONCEPT:

• CCTV capture and recognize all people within its range

• Software automatically identify name and gender with integrated database

• Alert on blacklisted / unrecognized people observation

Face Recognition CCTVs – State-of-the-art system to provide security within the region.

Enhancement of security for increasing population of subject area

“Face Recognition CCTV” as a countermeasure

Face Recognition CCTVs

BENEFIT:

• Security function for enhancing safe environment for investing companies and new residents.

?

xxx CITY POLICE DEPT.

Surveillance Cameras

ALART: STREET 024, City Centre

STATUS: identified

NAME: xxx yyy

AGE: zz

Crime History:

EXIST (twice)

?

??

Identified:

BBB CCC, Lawyer

Identified:

DDD FFF, Bank Worker

Identified:

xxx yyy

STREET 024

Monitor Room

Connected

Simultaneously


Source : Mizuho Bank Ltd,


35

CONCEPT: Introduce freight trains through the subject area (Already have plans for extending 2 lines)

• High capacity (1 train = approx. 50-100 Large CVs)

• Launch of scheduled, punctual services provided

Expansion of Freight Tracks to subject regions for speedy and high volume

Infrastructure development of subject region for One-stop services to access major cities like DELHI and MUMBAI

“Freight Trains” as a countermeasure

Freight Trains logistic hub

BENEFIT:

• Improvement in network as a result of DMIC & DFC connection and simultaneously increase in attractiveness of subject region among investing

companies.

• Government investment in DFC (Dedicated Freight Corridor) may make freight trains dominant in the near future

Depot

Depot

Port Export

Present situation of Japan Railway Freight Transportation

• Railway Track 200,000 km(2016,Average Freight Volume 300t approx.)

• Covering all major cities with 24hrs within Tokyo(Freight Station - Osaka 7hrs,Fukuoka 17,Sapporo 23hrs)

• 30mins above delay rate is 5.6% (2015FY).This rate is extremely low rate considering heavy snow in winters.

Source : Created by Mizuho Bank Ltd, based on NIKKEN SEKKEI


36

CONCEPT:

• Depending on the current circumstance(effluent standard, recycling, budget, space etc.), proposal to establishment best possible waste water

treatment method .

• Encourage water reuse to ensure stable supply of water (In line with “zero-discharge policy”.)

Gujarat is considered to be highly concerned with environmental issues and industries have cost burden

for waste water treatment.

Establishing common efficient Waste Water Centralized Treatment Plant to address environmental issues

and reducing cost burden of investing companies.

“Waste Water Solution” as a countermeasure

Waste Water Solution

BENEFIT:

• Solution towards respective states environmental regulation and deploying water treatment plant at industrial park development stage to reduce

risk of delay & discontinuing operations.

• Reduce cost and minimizing time from land allotment to operations due to environment issues.

Factory, Residential etc.

Effluent

Treatment

Treated Discharge

Utilization within Factory,

Residential area etc.,

Gardening etc.Water re-use

Water Supply


Source : Created by Mizuho Bank Ltd, based on NIKKEN SEKKEI


37

CONCEPT:

• However, at present with support of present Japanese(JIM) and Gujarat government the stakeholders are involved in human resource

development , but to address future industrial human resources requirements, various education institutes etc. shall be required other than

individual companies.

• Introducing Alumni database for matching companies and human resources and promoting weekday working & weekend leaning technical

education.

Employment in auto sector is expected to reach approx. 20 million by the year 2030 in subject region.

Requires industrial workers training for addressing needs of new investing companies and expanding

production.

“Education Institute” as a countermeasure

Education Institute (Vocational Training for Make in India area)

BENEFIT:

Increase in investing companies and Elimination of bottle neck faced by investing companies of Encourage mid- or small-sized company to enter

subject area (i.e. promotion of “MAKE in INDIA”)

Contribute to the sustainable growth of subject region

• ONLY large companies

operate (small)

educational institute

• middle or small firms find

difficult to hire appropriate

employee

Alumni Database

3rd party-operated

education institute

promote MAKE in INDIA

by encouraging middle- or

small-sized company to

establish plants in India.


Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE

38

2.3 FDI potential from Japan

Area Population

7 million

OEMs (Capacity)

3 OEMs ( 1.2 million)

Number of Suppliers

(T1&2) 250+

Auto Related Employee

120,000+ *state total

S.M.B. 2022

Area Population

5.5 million

OEMs (Capacity)

7 OEMs (1.2 million)

Number of Suppliers

(T1&2) 400


271,000* state total

Pune (2015)

Area Population

8.5 million

OEMs (Capacity)


Number of Suppliers

(T1&2) -


100,000 *state total

Bangalore (2015)

Area Population

4.6 million

OEMs (Capacity)


Number of Suppliers

(T1&T2) 200


311,000 *state total

Chennai (2015)

Area Population

20 million

OEMs (Capacity)


Number of Suppliers

(T1) 400, (T2)2000


304,000 *4 states total

Delhi NCR(2015)

Area Population

20 million

OEMs (Capacity)


Number of Suppliers

(T1) 462, (T2)1,137


525,000

Bangkok (2015)

Area Population

7.6 million

OEMs (Capacity)

27 OEMs(1.2 million)

Number of Suppliers

(T1) 200, (T2)441


709,000*

Selangor + KL

(2015)

S.M.B is predicted to be the largest automobile cluster in the world with 2 million 4 wheeler production.


39

Area Population

(0.5 + 5.5) million

OEMs (Capacity)


Number of Suppliers

(T1&2) 50


62,000 *state total

S.M.B. 2016

*For OEM

And Suppliers

Penag are is

Included.

Area Population

8 million (30% up)

OEMs (Capacity)


Number of Suppliers

(T1&2) 500+


200,000+ *state total

S.M.B. 2030

S.M.B.(Sanand,Mandal,Becharaji)

Source: Compiled by Mizuho Bank,Ltd based on Annual Survey of Industries of

India, , Automobile association in Thailand and Malaysia, Census of India 2011Note: ASI Data includes *NIC(National Industrial Classification 2008) Codes 3 Digit Data:291,292,293,221,231,272,274,309.

Companies having 100 or more workers & all factories covered under Joint Returns are included by ASI Data.

40

Japanese companies consider India as one of the most prospective markets.

・in mid-term: 2nd prospective, following China

・in long-term: 1st prospective

Most Japanese companies are going to expand their businesses in India in 1-2 years.

Japanese Companies Focusing More on Indian Market


0

10

20

30

40

50

60

70

80

90

08年度 09年度 10年度 11年度 12年度 13年度 14年度 15年度 16年度 17年度

得票率（％）

中国インドインドネシアタイ

ベトナムブラジルロシア米国

Which countries do you see as prospective markets

in mid-term (~3 years)

Which countries do you see as prospective markets

in long-term (~10 years)

FY2014 FY2015 FY2016 FY2017

1 India India India India

2 China Indonesia China China

3 Indonesia China Indonesia Vietnam

4 Brasil Indonesia Vietnam Indonesia

5 Thailand Thailand Thailand Thailand

6 Vietnam Brasil Mexico USA

7 Myanmar Myanmar Myanmar Myanmar

8 Russia Mexico USA Mexico

9 Mexico USA Brasil Brasil

10 USA Russia Phillipines Phillipines

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Source : JBIC

Reason of FDIIndia

Indonesia China Thailand Vietnam2017 2016 2015

Future market size 85.5% 85.2% 88.9% 85.2% 68.5% 50.0% 71.2%

Current market size 36.3% 28.7% 32.7% 34.5% 61.4% 32.9% 15.3%

Labor cost 31.6% 30.9% 31.0% 33.1% 14.2% 23.7% 50.3%

As supply chai 24.4% 20.6% 24.6% 18.3% 26.9% 24.3% 12.9%

Talent and Human resource 15.5% 11.7% 10.5% 5.6% 11.2% 13.8% 19.0%

Exporting hub 11.9% 12.1% 12.3% 12.0% 10.7% 29.6% 18.4%

Industrial Cluster 9.3% 11.2% 9.4% 14.1% 22.3% 24.3% 7.4%

Infrastructure 0.5% 1.8% 1.2% 4.2% 13.7% 23.0% 6.1%

Reason of investment from Japan

41

For India entry, nearly 90% answered “Market potential” as a top reason

Labor cost and current market size follows

Reasons of market entry


Source : JBIC

-10.0

-5.0

0.0

5.0

10.0

15.0

中国インド

日本米国

EU ASEAN-5

サハラ以南アフリカ

42

India kept a one of the highest GDP growth among the world

In 2008 there was rapid increase in FDI from Japan and kept high level in the following years

FDI from Japan to India

-10.0

-5.0

0.0

5.0

10.0

15.0

中国インド

日本米国

EU ASEAN-5

サハラ以南アフリカ

GDP growth

Lehman crisis

FDI from Japan to India

1,506

5,551

3,664

2,864

2,3262,802

2,1552,408

-1,176

3,690

1,060

-2,000

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

2008年：第一三共による

ランバクシー買収

（約4,900億円）

2009年：NTTドコモによる

ＴＴＳＬ株式取得

（約2,600億円）2010年：JFEスチール

によるJSWスチール

への出資

（約900億円）

（百万USD）

第一三共がランバクシー株を売却

（速報）

NTTドコモがTTSL株を売却(仲裁裁定金)

Actual ← →Projection


China

Japan

EU

Sub-Saharan Africa

India

USA

ASEAN-5 Mil USD

FY2008：Daiichi

Sankyo to Ranbaxy

（490 billion yen）

FY2008：Daiichi

Sankyo to Ranbaxy


FY2008：Daiichi

Sankyo to

Ranbaxy


Daiichi Sankyo sold Ranbaxy

Equity

NTT Docomo sold TTSL equity

Source : JETROSource :IMF “World Economic Outlook October 2017”

43

Around 100 new entities are established in India every year.

Establishing more than one bases in India

After 2014, there is steep increase in regional offices/branches due to M&A in Financial sector &

transportation sector.

Japanese companies in India


Number of Japanese companies in India Sectorial share

Source: Japan Embassy

4,838 Regional Office/Branches（As of 2017 Oct）

Regional Offices/ Branches

Electronics

Automobiles

Other Manufacturing

Banking & Financial

Companies

Manufa

cturing

34.1％

Agricultural Mining & Construction

Chemical & Pharmaceuticals

Metal & Non Metal

Machinery

IT & ITS

Trading & Retailing

Other Service

Operation of Japanese companies in India

Business expansion plan India

Ratio of expansion in India

is highest among 20 countries

44

45.8

53.0

50.5

53.6

61.4

17.7

14.9

18.6

15.1

14.8

36.5

32.1

30.9

31.4

23.8

2013

2014

2015

2016

2017

黒字均衡赤字

48.1 52.3 48.4 51.3 55.4

26.6 30.8 36.1 32.3

32.8

25.4 17.0 15.5 16.4 11.8

2013 2014 2015 2016 2017

改善横ばい悪化

63.1 65.0 66.0 62.4 64.7

30.4 28.3 29.2 30.0 29.1

6.5 6.8 4.8 7.6 6.2

2013 2014 2015 2016 2017

改善横ばい悪化

II. Profitability projectionI. Profitability actual

Profitability shown the highest in last 10 years

Profitability of Japanese companies is increasing in India

72.1%

64.2%

58.3%

51.3%

50.7%

45.3%

67.5%

59.2%

49.5%

52.6%

51.1%

51.6%

70.3%

63.5%

48.0%

57.1%

48.5%

52.5%

従業員の賃金上昇

競合相手の台頭

従業員の質

税務(法人税、移転価格課税など)の負担

品質管理の難しさ

原材料・部品の現地調達の難しさ

2017

2016

2015

Labor cost increase is the top issue for operation

Local procurement improves

Procurement trend

Local procurement of Japanese companies is increasing

In India (55.9% in FY2017)

32.2 28.8 31.5

24.5 23.3

12.1 9.9 8.7 9.8 9.2

7.7 6.0 4.9 4.4 4.8

4.7 7.1 6.9 7.2 6.8

2013 2014 2015 2016 2017

現地調達日本ＡＳＥＡＮ中国その他外国

インド(アジア・オセアニア

　20カ国平均)

2014 78.2% 56.3% 20.0% 0.7% 0.2%

2015 74.7% 51.2% 23.3% 2.0% 0.0%

2016 70.7% 52.2% 27.6% 1.7% 0.0%

2017 69.6% 53.7% 27.9% 2.2% 0.3%

現状維持縮小移転・撤退拡大


Profit expectation Issues for operation

Profitability （comparison to previous year）

Source : JBIC

Profit no profit

/ no lossloss

Better Stable Worse Better Stable Worse

Stable Shrink Closing

Expansion

Asia &

OceaniaIndia

Labor cost rise

Competition

Labor quality

Tax relate issue and cost

Manufacturing quality

Local procurement

India Japan ChinaOther

countriesASEAN

45

NCR, Chennai and Bangalore is automobile cluster and having more than 300 bases of Japanese companies for each

Japanese Companies in India


2009/10 2017/10

Basement ： 1,049 4,838（361％ up）

Companies ： 627 1,369 （118％ up）

Gurgaon（97 →438 ）Maruti, HMSI, Denso, Panasonic, Asahi Glass, JFE Steel, Cannon, YKK<

Toshiba, Softbank, Rohto Pharma, KOSE, Kameda and etc

Mumbai （150 → 373）コKokuyo, Sumitomo Chemical. NYK, Omron, Muji, Wacol, Nippon Paper

Pune（56 → 205）Yazaki, Sharp, Bridgestone, Mitsubishi Electric, Nipro, GS Yuasa, Fukoku,

Mitsuba, Kuroda eclectics, Tsubakimoto chain, TBK, Polite, Sumitomo

Heavy, Eagle, Marubeni-Itochu Steel and etc.

Neemrana（11 → 38）Oji Paper, Nidec, Daikin, Unicharm, Dainichi Color, Mitsui Chemical, Toyota

Gosei and etc

Bangalore （121 → 425）Toyota, HMSI, Seiko Epson, Tokai Rika, Seiko watch, Yasukawa,

Yokogawa, Mitsubishi Electrics, Bando Chemical, TMEIC and ets

Ahmedabad （31→145）Suzuki Motor Gujarat, HMSI, Hitachi Hi-rel, Mitsubishi Aluminum, ROKI,

Toyota tsusho, Unicharm and etc

Delhi （142→331）Yakult, Mitsui Chemicals, Furukawa Sangyo, Hitachi, KHI,

Yokohama Rubber, Nippon Steel Corporation, Nippon Steel

Trading, Kazokutei etc

Noida （38 → 88）Honda, Yamaha Motor, Yanmar, Nichia, Nissin

Electric, Kobelco Construction Machinery, Nissin etc

Kolkata （46 →136）ＤＩＣ, Kubota, Shinsho, Kobelco, Hitachi Construction

Machinery, Kurosaki Harima, Isuzu Trading（Paint &

Coatings） etc

Chennai （149→372）Nissan, Yamaha motor, Toshiba, Komatsu, Koito, Unipress,

NTN, Fujite, Ajinomoto, Yamaha music and etc.

Hyderabad （28 →117 ）Toshiba, Fuji oil, Nipro, Nippon, Nichino, Tomoe, Nagoya

electrics, Daicel, Mitsubishi Corporation and etc.

Bangalore and Chennaioccupies approx 20%

Sri City （0→ 16）Metal one, Kobelco Craine, Unicharm, Isuzu, NHK springs,

Kusakabe and etc

NCR occupies approx 20%

Source：Embassy of Japan in India

46

In NCR, Number of operation start increased at the point of 750,000 and 1,000,000 annual four wheeler production

Increase of factories of Japanese companies in NCR


About 750,000 four wheeler

production, Number of factory

establishment increased.

Number of factory established is based on 195 Japanese companies in Gurgaon,Manesar,Bawal,and Neemrana area.

,000 unit

of productionAbout 1,000,000 four wheeler

production, Number of factory

establishment increased.

Source: public news and corporate news

2016ACTUAL

2006ACTUAL

IP/SEZ/SIR - Available

IP/SEZ/SIR - Occupied↓ to MUMBAI

↓ to AHMEDABAD

MUMBAI

NH48

Delhi – Ajmer

Hwy.

47

Number of Japanese Companies – 2006 to 2016 in DELHI NCR

Maruti Suzuki 1st Plant

Maruti Suzuki 2nd

Plant

Honda car 1st Plant

Yaklut

Honda Motorcycle

MAHINDRA

World City

Neemrana ph.3

* for Japanese

Companies

Ghilot

※for Japanese Companies

Jhajjar

Kotputli

Bahadurgarh

Tapukara -

Chopanki

Rai

IMT Manesar

IMT Faridabad

Greater NoidaYamaha

YKK, Asahi Glass, Nissin

Yamaha

Daikin, Unicharm,

Nidec, Toyota,

Kundri

Suzuki Motorcycle 2nd

Plant

Barhi

Panipat

Rohtak

Panasonic, Denso

410

85 19

306

37238

280

29978

NH48

Bawal

Dharuhera

Indira Gandhi

International Airport

Honda Motorcycle

Honda car 2nd Plant

DELHI

NH34

NH9

NH9

NH9

Source：Embassy of Japan in India


48

Estimated Number of Japanese Companies – 2016 to 2030 in GUJARAT

IP/SEZ/SIR - Available

IP/SEZ/SIR - Occupied

Sardar Vallabhbhai Patel

International Airport

AHMEDABAD

Mundra SEZ

P. Mundra

P. Kandla

Kandla SEZ

Mandal

* for Japanese companies

Mitsubishi Aluminum,

Toyota TsushoMitsubishi Heavy Industries

P. Surat

P. Dahej

Dahej SEZ

DIC、Toyo inkSakata Ink

Sayakha

Hazira SEZ

MHI

Halol ph.2

TOTO、SAIC

Sanand ph.2

TATA

Motors

(nano

Plants)

Ford, Hitachi, Unicharm

2016ACTUAL

2030ESTIMATED

Jhonson Hitachi

Kadi

NH47 Ahmedabad – Rajkot

Hwy.

NH27

NH27

NH48 Ahmedabad – Vadorada

Expwy.

NH48

Sanand ph.3

4 85+


Honda Motorcycles ↑ to DELHI

↓ to MUMBAI

Dholera SIR

145 350+

22 40+

Source：Mizuho Bank Projection & Embassy of Japan in India


49

Automobile sector is most promising in S. M. B. area by 2030


Sector Potential Trend in the area Expected number of Japanese factory

Automobile

◎

Four wheeler production capacity in the are

is expected to be 1.34 million in 2020 and

2.19 million in 2030.

Major tier 1(400 companies) & 2 (2000

companies) supplier of automobile may start

production in this area.

100 - 150

Railway

○

Mumbai – Ahmedabad high speed railway

project will start from 2018 and may open in

2023.

As this is based on Japanese Ｅ5

Shikansen, related manufacturer may start

Make in India.

10 - 20

Electronics

○

There is already a factory of

Japanese AC brand nearby the area.

Other electronics and related

supplier (motor / compressor) may

come in to the area.

10 - 20

FMCG

○

Major Japanese FMCG player will start

operation in SanandⅡ.

Related material supplier (chemical,

material, metal) may start local production

along with the major player.

5 - 10

Source：Mizuho Bank Projection & Embassy of Japan in India

50

2.4 Issues & Proposed Solutions of the Targeted Japanese Investment Area

(SIR framework, Initiatives by Gujarat for Investment, Infrastructure Development)

51

①SIR Act: Overview

2.4 Issues & Proposed Ideas for the Targeted Japanese Investment Area (SIR framework, Initiatives by Gujarat for Investment, Infrastructure Development)

Gujarat enacted SIR Act in 2009 to develop Investment

Regions in Gujarat with World class infrastructure by

conferring powers to Regional Development Authority.

13 Special Investment Regions have been planned.

Master Plans prepared by Regional Development

Authority (RDA) for 7 of the 13 SIRs.

No. Name of SIR Status Remarks

1 Dholera Notified 920km2, more details follow

2 PCPIR Notified 453km2, Petroleum related

3 Halol – Savil Notified 123km2, Engineering

4 Santalpur Notified 186km2, Agriculture

5 Navlakhi Notified 182km2, Engineering

6 Aliyabet Notified 169km2, Entertainment

7Mandal -

BecharajiNotified

*Currently being developed

under Dholera SIR, more

details follow

8 Viramgam Proposed 301km2, Automotive

9 Changodar Proposed 319km2, Agriculture, Metals

10 Anjar Proposed 237km2, Port Related

11 Okla Proposed 206km2, Pharmaceuticals

12 Pipavav Proposed 147km2, Logistics

13 Simar Proposed 83km2, Cement

Source: Compiled by Mizuho Bank using data from gidb.org, dholerasir.com

“Gujarat Special Investment Region Act 2009” enacted by Govt. of Gujarat is the legislation for establishment, operation, regulation

and management of large size Investment Regions with an area of over 100 sq kms.

13 Special Investment Regions identified by Gujarat and Dholera SIR is also designated as an Early Bird Project of DMIC

Outline of Special Investment Region Act Details of SIRs

*Salient Points of

SIR Act

GIDB(Apex Authority)

has been conferred

upon all the powers

(regulations, approvals

etc.)

・RDA formed for each

SIR is the development

Authority

*RDA is responsible

for Land Acquisition

・Investment Region

Size – more than

100 Sq. Km.

・Industrial Area Size –

more than 50 Sq. Km.

52

①SIR Act: Overview of Dholera SIR

Dholera SIR is identified as an Early Bird Project of DMIC.

Total Investment of INR 1 Trillion expected and majority of Infrastructure to be developed in PPP mode

Outline of Dholera SIR

City Level Development SPV - Dholera Industrial City

Development Limited DICDL formed and Govt. of India holds

49%

Dholera SIR, about 100 km south of Ahmedabad, is identified

as an Early Bird Project of DMIC. Metro, New Airport,

Connectivity with Dedicated Freight Corridor are being

planned. At the City level SPV, Govt. of India (Central Govt.)

has holds 49% ownership and Govt. of Gujarat (State Govt.)

holds 51% ownership.

Master Plan of Dholera SIR

・Targeted Development Area：920km2(Area consists of 22 Villages)

・Connectivity：6-lane roads, Metro, Railways, Connectivity with DFC

・Others： Proposed Dholera Airport (Environmental Clearance done)

・Industries：Defense, Aviation, Electrical & Electronics, Pharmaceuticals,

Heavy Engineering, Automotive, Agriculture & Food Processing, Metals

・Town Planning Scheme(Gujarat Town Planning Scheme 1976)

・5600Acres to be open in 2019. Project expected to complete in 2030.

・State of the art & environmentally friendly technologies such as CETP to be

introduced

・L&T selected as EPC Contractor & has begun construction of basic

infrastructure.

・Activation Area of 22km2 would have Plug & Play Infrastructure

*Govt. of Gujarat in the Budget for 2018-19

has provisioned INR 2.8 Billion for

Development of Dholera SIR.

Source: Compiled by Mizuho Bank using data from dicdl.in, dholerasir.com


53

① SIR Act: MBSIR – 1. Overview

Source：MB SIR draft plan

MBSIR’s Population estimated at 700,000 by 2040 as per the Final Master Plan submitted in Mar 2016

Currently, according to details in Final Master Plan, detailed planning & Environmental Clearances are being

carried out.

Current Situation of the Target Region Final Master Plan of Target Region *As on Jun 2016

Area: 102km2

Population : 13,460 (Year 2011)

Employment:

No. of Villages: 8

Targeted Area for Development: Reduced From 526km2 to 102km2

Road Connectivity:

SH7(4lanes,10m wide→ 30m wide expansion -ongoing )

SH133（5.5m~10m wide→24m wide expansion – ongoing )

Electricity: Supplied by Uttar Gujarat Vij Company Limited

Water: Supplied by GWSSB (From Zinzuwada Branch Canal -

18MLD)

Waste Water Disposal: No (Sewerage and storm water

infrastructure)

Gas: Supplied by GSPL every time, Gas Pipeline not available

Telecom Service Providers: BSNL, Reliance, Airtel

Education: 14 Schools (Primary: 10 Schools, Middle: 4 Schools)

No Presence of High Schools, Universities, Training Institutes

Hospitals : 5 Small Clinics

Public Transport : Regular service operated by

GSRTC(State Owned) in SH 7

Development Vision:

To develop a smart industrial city with concept of reduce,

recycle and efficient transportation network

Area:102km2

Population : 7,29,200(Year 2040) Daytime Population of 9,11,500

(Population of Existing 8 Villages expected to be increased further

by12,000 by 2040)

Employment: 3,04,500 (Direct: 1,25,000, Indirect1,79,500)

Road Connectivity: SH7 (90m wide 8 lane road)

SH133（60m Expansion）Electricity: Power Source for expected 464MWh demand is not available

Water: 231.48MLD required (118 MLD from Recycled or

Narmada Main Canal)

Waste Water Disposal: No (Sewerage and storm water infrastructure)

Gas: 225.598MLD

Telecom Service Providers: BSNL, Reliance, Airtel

Education: MoUD Guidelines (based on Population, Area),

Kindergarden 50 Schools, Primary: 25 Schools, Middle: 20 Schools,

Training Institutes - 2 Institutes, Universities – 2 Universities

Hospitals: 59 including Small Clinics

Fire Station: 4, Police Station: 2, Police Assistance Booth: 4

Public Transport: Apart from connectivity with neighboring areas,

Connectivity with Railway Stations mentioned.


54

①SIR Act: MBSIR – 2. Development Plan & Visualization of Neighborhood

SH 7 connecting MBSIR is proposed as an 8 lane road (Currently, the10m wide road is being expanded to a 30m

wide road)

North – South SH 7, 8 lanes, 90m wide

Roads within the

region to be 45m or

60m wide

BRT planned within

the region

(Currently 4 lanes,

10m wide→ 30m wide expansion – ongoing )

SH133, 6 lanes, 60m wide

(Currently,

5.5~10m wide → 24m wide

expansion ongoing)

Visualization of Neighborhood

Suzuki

Honda

Mandal

Land Use Category Area (ha)

Industrial 2,858 28.0%Logistics 210 2.1%Mixed Use and High Access Corridor 1,322 12.9%Residential 3,513 34.4%Knowledge & IT 369 3.6%Recreation, Sports, etc. 782 7.7%Road, etc. 1,156 11.3%Total 10,210

Category wise Development Plan



55

①SIR system: MBSIR - 3. Development situation and development cost

Development cost 111.99 billion rupees (about 200 billion yen)

Development planned for SPV, PPP model (SPV for MBSIR development is not being constructed)

Development costDevelopment status

20

09

-2

01

72

01

8-

・Master planning

・Negotiations with residents

・Acquisition of GIDB approval

・Development of basic infrastructure

・Master plan completed

・Negotiation with resident over

Approval expected

by May 2018

According to the master plan of MB SIR, the development

cost of the infrastructure part is estimated to be about 200

billion yen .

The project is currently in the stage of obtaining GIDB's

approval, and is scheduled to be completed around May

2018. Development of basic infrastructure is planned

thereafter.Unit: INR 10

Million

Roads 5352

Shared Utility 47

Water Supply 670

Water Treatment 1382

Storm Water 1871

Flood Measures 110

Electricity 1518

ICT 142

Canal 18

Others 90

Total 11199



56

①SIR Authority：Tasks

The SIR system was launched in 2009, but it has not yet reached planned goal

The main reasons are (1) the difficulty of land acquisition, (2) absence of anchor investment

Difficulties with land acquisition in SIR Absence of Anchor investment

Method of Land acquisition：Land acquisition on SIR act、① Create project proposal for target area

②Window for comments from public

③Land Pooling is performed *Only allowance of land

*Ahmedabad and Surat used the same method

* The AP state government's new capital city also using same method

Issues：・一Until the development of land, no monetary benefit to land owner

*一Government provides guarantee but during the period agricultural

activities or sale of land is not possible.

*Land acquisition law of 2013 provides 4 times compensation of market

price, which is more attractive.

・MBSIR was initially planned with area of 500 square KM (44 village ) but

due to problems during land acquisition , its reduced to100 square KM (8

villages)

・ For the development of Green Field, companies and people can

not be expected to accumulate at a stage when no independent

development companies (Private developers) and anchor companies

(OEMs like Suzuki in Gurgaon, and Ford in Chennai, etc.) are

present

・ Slow land acquisition and perceived higher cost of the PPP is seen

as hindrance for private players participation.

Gujarat State government is under consideration of following policies

・ Increase subsidy from 15% of project cost to 20% for PPP

・ The concession period can be extended to more than 35 years

35% to 50% of the land is acquired, and then government

develops the land. After development, when the land price rises,

landowners sell the remaining holdings at the increased rates


Source：public news

57

②Issues and initiatives by government: Gujarat State Government's efforts to develop industries

Source：http://imd-gujarat.gov.in/Document/2016-4-19_704.pdf

Gujarat state investment promotion policy ： Gujarat Industrial policy 2015

Gujarat state government vision：’Gujarat’ as a globally competitive and innovative industrial destination that stimulates sustainable

development & promotes inclusive growth

Main strategies for achieving growth：- Accelerating Development of Infrastructure

- Encouraging labour-intensive industries

- Focus approach for industrially under-developed Areas

- Strengthen sector-specific skills and promote vocational skills

- Strengthen specific sectors approach

- Strengthening collaboration between Industries and Universities

- Support in technology up-gradation and research & development

- Promote trade facilitation & e-governance

- MAKE in INDIA campaign

- Conducive Labour reforms


58

②Issues and initiatives by State government：Overview of Gujarat Industrial policy 2015

Policy for industrial development Details

Inclusive growth and development • Focus on regional development

Improving investment environment • Strengthen single window system, simplify administrative procedures

• Establish CCIPM（Chief Ministers’ Cabinet Committee for Industrial Policy and Monitoring)

Investment promotion measures • Development of sufficient infrastructure to be a global base of manufacturing industry

• Utilization of DMIC (Delhi Mumbai Industrial Corridor) and SIR (Special Investment region)

• Promotion of Large / Mega project

• Promoting balanced regional development (introduction of non-polluting industries, utilization of existing strengths

and resources of the state, promotion of cluster development, promotion of food processing industry, promotion of

value added industry, promotion of labour-intensive industry, Promotion of the IT and electronics industry,

promotion of port related industries, promotion of non-conventional energy, promotion of female and young

entrepreneurs)

Centre of excellence, encourage sector

wise specialization of skills

• Nurture of skilled human resources, expansion of training centre in GIDC Estate, promote of Anchor institute

• Skill development Institutions with market driven curriculum for sector specific skill development

Making Institutions more efficient for

Industrial development

• Establishment of trade promotion centre, investor support system

• Development of sector specialized type industrial zone

• Land identification and aggregation for a Public Land Bank

• Development of web portal for business operators

• Land acquisition support by GIDC and establishment of special investment area (SIR)

• Establishing a session/forum to regularly discuss issues of businesses

• Making environment compliance procedure easier

Adoption of new technology and

promotion of innovation and technology

transfer

• Encourage Start-ups, innovations and R&D.

• Improve competitiveness of SMEs

Infrastructure development • Improvement of industrial infrastructure (improvement of industrial estates, support for private industrial parks, etc.)

• FSI review of GIDC Industrial Park

• Provide efficient logistics service

• Improve connectivity with remote areas

• Encourage establishment of private industrial park

Improving power supply • Increasing power production to meet demand

Others • Sick enterprise revitalization, encouragement of service sector, promotion of holistic development

• Development of green infrastructure.

Source：http://imd-gujarat.gov.in/Document/2016-4-19_704.pdf


59

Main problems faced by companies entering Gujarat

Human Resource

• Substantial improvement is requirement to generate quality labour pool. Current level

lacks that in resource comparison to Chennai or Gurgaon .

• Education Standards of ITI(Vocational training schools ) needs to be revamped

drastically.

• High attrition rate among skilled worker, requires better social infrastructure.

System

• Multiple licences, approvals and unclear procedure (Judgement differs for each officer,

no detailed policy driven mechanism)

• Although a specialized agency (iNDEXTb) is provided as a single window, it has only

inquiry function and does not have authority 。

Soft In

frastru

ctu

re

• Labour and work related regulations should be flexible.

• Applications are made to State office as well as MBSIR, it takes time and twice the

human resource.

②Issues and initiatives by State government：target areas

Source：compiled by Mizuho Bank from my interviews with industry


60

Social Infra

• Scant availability of cosmopolitan food and beverages makes life of expats difficult.

• Major concern regarding security. In the area, instead of rural hubs, it should be considered as

Industrial hubs and policies conducive to the area shall be placed.

Industrial Land

• With expansion of capacity of Suzuki factory, expansion of many enterprise is expected, but, lack

of suitable land and industrial parks is concern.

Roads• National Highways are well maintained but state highways near Mandal-Bechajji (Home to

factories of Suzuki and Honda two wheelers) are poorly maintained, narrow and frequently

flooded during rainy seasons

Hard

Infra

stru

ctu

re

• Ahmedabad to Mandal takes 2 hours, making the commute vey difficult.

• Houses, Schools, Hospitals etc are required to attract senior employees.

• Better Transportation is required between factories and near by residential areas.

• Environmental regulations within Gujarat are strict and it is necessary for each tenant company to

deal with it, so we would like to recommend a centralized wastewater treatment system in the

industrial park.

②Issues and initiatives by State government：target areas

Main problems faced by companies entering Gujarat

Source：compiled by Mizuho Bank from my interviews with industry


61

Most wokers are corrently based in Kadi.

Public transport network has to be better for

their commuting from Kadi to Mandal area.

Securiy is issue as some of our workers are

attached near by Kadi Canal road.

Water piple line is proposed but delayed

due to protestants.

Company BPublic transport is not enough. There is a

huge demand between Sanand 2 and

villages near by.

Company D

Gujarat Governmetn are always

supportive to us, but still we have below

issues.

Local employees are based in Mesana

and Kadi. Ahmedabad is too far for

commuting and there is a huge demand

of residence, good schools and hospitals

near by Mandal –Becharaj area.

Road Connectivity should be improved

between Becharaj and Viragaram.

MBSIR require approvals for each

activities, it should be more easy to

operate and expand facilities.

Railway connectivite has to be done by

the Indian rail. We expect government

support.

Company ACurrently 60% of workers are based in

Mehsana and Kadi. There should be a

good private school as Ahmedabad is too

far for our employee.

Company C

②Issues and initiatives by State government：Some voices from the industry

Source：compiled by Mizuho Bank conducted interviews


62

2.5 Soft and hard infrastructure requirements for Industrialization and

Prediction of Benefits to Japan Companies

63

2.5 Soft and hard infrastructure for Industrialization and Prediction of Benefits to Japan Companies

Basic Information : Location of the site

Kandla

Ahmedabad

Kadi

Sanand

Becharaji

75km

50km

Dedicated DMIC

100km

MBSIR

Wide Area Map including current projects (Dholera, DMIC, Kandla Port etc.)

Dholera

Khoraj

Mehsana

75 km


64

Narrow Area Map including current projects (Khoraj, Mandal, Becharaj etc.)

75 km

Kadi75km

50km

25km

Ahmedabad

Sanand

R7

R18

Becharaji

Khoraj

Road Connectivity

Basic Information : Location of the site

Mehsana

Gandhinagar

GIFT

City

R133

R17

Khoraj Industrial Estate

Bol SANAND

Becharaji SIR

Mandal SIR



65

Bol SANAND

The India Village Bol, is located in the taluk of Sanand, district of Ahmadabad, in

the State of Gujarat.

• Bol By Rail Chharodi Rail Way Station , Virochannagar Rail Way Station are

the very nearby railway stations to Bol

• How ever Ahmadabad Jn Rail Way Station is major railway station 38 KM near

to Bol Colleges near Bol Sad Guru B

• College Address : Oppisite

• Police Station; Kolat Rd; Sanand 382 110;dist : Ahmadabad Schools in Bol Bol

Primary School Address : bol , sanand , ahmadabad , Gujarat

Colorobbia is having its

plant in the GIDC sanand,

Gujarat State. The

company has production,

Pilot plant, Show room

and laboratories in order

to give support to

the ceramic indian

business in all aspects.

Colorobbia India

Basic Information : Related Planning / Projects


Source : GIDC

66

Khoraj Industrial Estate

The main objective of this project is to encourage investment in the estates within

Gujarat Industrial Development Corporation (GIDC), region by implementing world

class infrastructure and also to encourage organizations to set up units in these

zones by giving various subsidies like exemption from stamp duty and registration

fees etc.

In order to boost the investment GIDC is currently working towards providing

excellence in industrial infrastructure focusing on the key infrastructure like power,

road, water supply etc.

Source: Creating World class industrial Infrastructure at

Khoraj



Source : GIDC

67

Mandal Becharaji Special Investment Region (MBSIR)

MBSIR is a government body specially

formulated to develop the planned development

for Mandal Becharaji Special Investment Region.

It takes care of the management, planning of land

resources and infrastructure. MBSIR is a new

industrial hub being planned by the Government

of Gujarat. It is one of its kind industrial hubs and

will comprise automobile, manufacturing and

auxiliary industries. The city is strategically

located, well connected with trade gateways and

falls in the influence zone of proposed Delhi –

Mumbai Industrial Corridor project (DMIC), a joint

initiative by the Government of India and Japan.

DPC worked with MBSIRDA for the preparation

of Development Plan and Town Planning

Schemes.

MBSIR



Source : MBSIR

68

DholeraDholera is strategically located in Gujarat. It is the largest node on

the DMIC and has excellent connectivity by air, land, rail & sea. It

is just 100 km from Ahmedabad and is well connected to other

major cities in Gujarat including Vadodara, Bhavnagar and Rajkot.

• Total Area: 920 Sq. km

• Developable Area: 567.39 Sq. Km

• High Access Corridor: City Center, Industrial, Logistic, Knowledge

& IT, Recreation & Sports, Entertainment

• World-class infrastructure & connectivity: within & outside

• Central spine express way & Metro Rail to link the SIR with mega cities

• Airport & Sea Port in the vicinity

• Proximity to mega cities: Ahmedabad, Bhavnagar, Vadodara

• Benefit of sea coast, nature park, golf course

• Premium civic amenities

• Capable to cater to both International & Domestic Market

• Close to Guajrat International Finance TechCity (GIFT)

• Close to Petro-chemicals and Petroleum Inv. Region (PCPIR)

• Logistic support of the Dedicated Freight Corridor (DMIC)

• Benefits of the high impact Delhi Mumbai Industrial Corridor (DMIC)



Source : Dholera SIR

69


It is a master plan which is spread over 920 Sq. Km. This beautiful city comprises of the 6 Town Planning Scheme

that will be developed in 3 Phase. The town planning scheme of Dholera SIR is spread into different Zones that

includes Industrial, housing, City Centre, Knowledge and IT Park, Solar Park, Public amenity zone, Sports &

entertainment, Corridor, Greenery, and Agriculture etc. for better development.

Dholera


Source : Dholera SIR

70



Industrial 636 44.3%Logistics 92 6.4%Mixed Land Use & Commercial 79 5.5%Residential 57 3.9%Knowledge & IT 0 0.0%Green Open Space 64 4.5%Road, etc. 508 35.4%Total 1,436


Industrial 2,858 28.0%Logistics 210 2.1%Mixed Use and High Access Corridor 1,322 12.9%Residential 3,513 34.4%Knowledge & IT 369 3.6%Recreation, Sports, etc. 782 7.7%Road, etc. 1,156 11.3%Total 10,210

Khoraj MBSIR

Projected Population: 16,741～25,790 (2040)

Land Use Analysis


Source : MB SIR and GIDC

71

Basic Information : Current Issues

Advantages ●Abundant electricity, water and well-

maintained infrastructure●A master plan for each district has

already been established

Issues ●Enhancement of road functions,

smooth inter-district cooperation

●Lack of functions for urban life

including residential, school,

hospital etc.

●Lack of human resources in the

surrounding area●Need for industrial diversification

(biased in the automobile industry)

●Traffic congestion in urban area ●Need for more secure urban

infrastructure



72

Concept : Promotion of Industrial Smart City making full use of Japanese expertise

Current master plan

concept

Based on the relationship between

Japan and India, advancing

technology and know-how in Japan

Industrial Smart CityCreation of new vitality in GJ

Realization of city for LIFE & WORK

・Local government and other organizations have established master plans for each district, and it has

already been introduced in some areas.

・Based on the concepts of these master plans, we aim for an industrial Smart City with industrial and

residential complex by adding Japanese technology and know-how to the parts to supplement and

expand them.

Complement and

expand the conceptIndustrial

InfrastructureFDI promotion

EnergyEnergy conservation,

effective use of resources

CommunityCommunity formation

,which residence and

retail are combined

MobilityCongestion

mitigation/ ordering

Human ResourcesHuman resources development to

revitalize the region



http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=nIB5ghUz6xgaKM&tbnid=iD1tK7lwpKr5zM:&ved=0CAUQjRw&url=http://business-icon.com/05-analysis/094-analysis.html&ei=OCw_Ud3JDMaHkQXR4IG4Bw&psig=AFQjCNFxbcKigtLP2tSNoh48Fpneo2WFAQ&ust=1363180927628342

http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=nIB5ghUz6xgaKM&tbnid=iD1tK7lwpKr5zM:&ved=0CAUQjRw&url=http://business-icon.com/05-analysis/094-analysis.html&ei=OCw_Ud3JDMaHkQXR4IG4Bw&psig=AFQjCNFxbcKigtLP2tSNoh48Fpneo2WFAQ&ust=1363180927628342

73

Concept : Formation of S.M.B. Industrial Network

MandalSanand

(+Khoraj)

Ahme

daba

d

Industrial

Smart City(Type of living

close to work)

Industrial

Smart City(Industrial type)

Becharaji

S.M.B. Industrial Network

Ahmedabed

Dholera

To Mumbai

Mehsana

Gandhi Nagar

To Delhi

GIFT City

Becharaji

Mandal

Sanand

(+Khoraj)

In collaboration with DMIC (Delhi Mumbai Industrial Corridor), we propose “Sanand-Mandal-Becharaji Industrial

Network” leading the development of Ahmedabad metropolitan area

Mundra



Concept : Promotion for smart city utilizing Japanese technology and know-how

EnergyEnergy conservation,

effective use of

resources

CommunityCommunity

formation

MobilityCongestion

mitigation/

ordering

Human ResourcesHuman resources

development to revitalize the

region

① Construction of traffic information platform

② Supply chain network by Freight railway

③ Realization of distributed energy

④ Introduction of water and

environmental systems

⑥ Practice of human resource

development program through

public-private partnership

⑤ Promotion of area management within

region

Mandal Sanand

(+Khoraj)

Ahme

dabad

Becharaji

Covering a network

between areas

Covering in each

industrial area

Industrial

InfrastructureFDI promotion

⑦ Promoting FDI by enhancing

Industrial Infrastructure


74Source : Created by NIKKEN SEKKEI RESEARCH INSTITUTE

75

Solutions : Mobility Construction of traffic information platform

■Congestion mitigation using ICT

■Crime prevention by face authentication camera

・Construct a platform to integrally manage traffic information within each area in Ahmedabad

・Promotion of public transportation, reduction of car traffic and crime by facilitating transfer

■Unifying IC card for facilitation of transfer

IC cards are not unified between

transportation modes. Also, They

have not been used effectively

Unification of IC card specifications

in BRT, Metro and public transit area

Promotion of the use of public

transportation facilitating transfer

Camera installation in station space,

other facilities

Detect criminals by collating with

information database

Crime prevention in public

transportation

Signal disregard at intersection and occurrence of

chronic congestion

Shooting number plate of traffic violation car at

intersection, registration to database

Reduction of signal ignoring and revenue increase for government

Send violation records to individual ICT terminals,

collection of penalty fees on the web

Case: Parking fine, Traffic violation fine payment

service in Bangalore One

Traffic

information

platform



76

Solutions : Mobility Supply chain network by freight railway

・Realization of environmentally friendly modal shift corresponding to increasing logistics demand

・Improvement of transportation efficiency and CO2 reduction through joint delivery scheme

■Construction of joint delivery scheme

Traffic jams and environmental burdens are

increasing due to the growing logistics demand

Implement scheduled transportation using joint

delivery scheme

Enhancement of transportation capacity and

promotion of use, reducing carbon emissions

■Image of container freight transportation

BecharajiKandla

Port

Reduction of CO2 from Truck transport



77

Solutions : Energy Realization of distributed energy network

・Construct a distributed energy network completed within each area or between areas

・Introduce smart meters and EMS (Energy Management System) using renewable energy at each facility to

promote energy conservation as a whole area

・Set up EV stations in the area and promote EV system for public transportation (LRT, BRT)

Smart meter + EMS

Renewable

energy (PV etc.)

EV station

EV station

Public

transportation

(LRT, BRT, etc.)

Renewable

energy (PV etc.)

Industrial ParkResidence

School, HospitalRetail, Office

Main grid

Distributed

energy network

Deployment image at Khoraj Industrial Estate

Temporary

R17

Distributed

energy network

LRT, BRT

LRT, BRT

PV

PV

EV Station

EV Station

Main energy line

Smart meter + EMS



78

Solutions : Energy Introduction of water and environmental systems

・Water purification, waste water treatment and water recycle at each industrial area

・Aiming at cycling use of water resources

■Water Reuse & Recycle System～Stable supply of water and efficient operation of water resources

Factory, housing etc.

Purification

facility

Wastewater

treatment

facility

Drainage

Reuse water tank

utilized for facilities and

plantationRecycled water



79

Solutions : Community Promotion of area management by government, corporate and residents

■Regularly hold events

■Development of Living Lab

Lecturer

Product

Companies

Local Community

Feedback

Developm

ent of new

products

■Promotion of Low Carbon

Society～Utilization of local renewable energy and

education on resource reuse etc.

■Local Waste Management

Companies

Regional community

participation

segrega

tion

RecycleWaste

Local

residents

Compan

ies

Governm

ent(GJ, GIDC,

etc.)

・Promote area management, forming comfortable community united companies, government and local residents

・Implementation of Triple-Win structure between three parties



80

Solutions : Human Resources Human resource development through public-private partnership

Before After

Providing basic programs up

to a certain level

(Cooperation of the Japanese

government , AOTS etc.)

In a fixed level or more, each

company offers programs

Each company

individually provides

programs (JIM,

Hitachi, etc.)

〇Small burden on each

company

〇Many employees can

receive the program

△Burden for each company is large

△Limited number of employees

receiving the program

Skill

Level

B C

Potential employee

A B CA

・Develop a human resource program for Japanese companies that promotes human resource abilities and bottom up

・By sharing program offerings by each company, it will increase the number of engineers with fundamental abilities

and contribute to expansion of the supply chain

●Market penetration of

companies like supplier

● Create a database of

graduates → Enclose

between Japanese

companies (prevention

of outflow to other

companies)



Water

Traffic

Energy

81

Advanced technologiesSmart infrastructure from Japan

Solutions : Industrial Infrastructure / FDI, Investment Promotion

Hybrid infrastructure

land development

Economic IncentivesInvestment incentives for

better competitiveness among India

Infrastructure with Minimum cost for operation

Hospitality & ManagementJapanese style hospitality and management

World class service in the estates

Japanese

Companies Indian

Companies

Multinational

companies

More FDI

Industrial infrastructure with technology, incentives and management

World class competitive estate attract FDI from not only Japanese but also other local major companies



82

Benefit Analysis : Analysis of methods and benefits for each methods

ISSUES SOLUTIONS METHODS BENEFITS

Energy③ Distributed energynetwork

④ Introduction of water and environmental systems

Management⑤ Promotion ofmanagement within regions

Human Resource⑥ Human resource development program

Congestion mitigation

CO2 reduction

Crime prevention

Tax revenue increase

Congestion mitigation

Shortening of travel time

Facilitating transport

transportation efficiency

Lack of Road function and cooperation between districts

Traffic congestion in urban area

Lack of urban function

Shortage of human resource

Promotion of smart city

policy

CO2 reduction

Energy costsreduction

Stabilized power supply

Energy costsreduction

Job creation

Strengthen competitiveness

Acquire of employment opportunities

Penetrating market / personnel

Renewable energy such as PV

Introduction of EV transport and station

Introduction of smart meter and EMS

Strengthen cooperation in surrounding area

Introduction of basic programs for human resource development

Mobility① Construction of traffic information platform

② Supply chain network by Freight railway

Unifying IC card for facilitation of transfer

Face authentication system to facilities

Congestion mitigation using ICT

Community symbiosis

Fiscal burden reduction

Community strengthening

Communitysymbiosis

Improved CSR

Need for more secure urban infrastructure

Need for industrial diversification

Government Citizens Japanese companies



LONG TERM(10yrs+)MEDIUM TERM(5-10yrs)SHORT TERM (-5yrs)

83

Benefit Analysis : Schedule

Energy

Management

Human Resource

Mobility

Sanand Operation / Management

Khoraj Operation / Management

Mandal Becharaj

IC Card

Renewable energy (PV)

EV Station

Smart Meter, EMS

Face Authentication

Congestion Mitigation using ICT

Community Strengthening

Human resource development

Ahmedabad METRO Completed by 2023

Development

Schedule

Water reuse & recycle system

Railway Freight system



Mehsana

Becharaji

Ahmedabad

Gandhinagar

84

Appendix : Same-scale for Ahmedabad and Tokyo

Ahmedabad

75 km

Ahmedabad

75km

50km

25km

Tokyo

Saitama

Kawagoe

Yokohama

Yokosuka

Sunto

District

Odawara

Shibuya

75 km

Tokyo

75km

50km

25km

Sagamihara

Nishitama

District



85

2.6 Finance for infrastructure improvement

86

2.6.1 Estimated financing method

Capital

increase

Investor

Renter

Japan head

group company·

Existing sharholder

etc.

Local bank

borrowing

Bank of India

Cross border

Bank loan

Indian foreign

financial

institution

Cross-border

Parent-child

loan

Japan head,

group company

Trade

Credits

Bank / Equipment

export

Contractors

Currency

quotationIndian rupee

Use of funds No regulation

Indian rupee

Equipment fund

Costs for

paying for

expense

working capital

Foreign

currency

Indian rupee

Equipment fund

Costs

Foreign

currency

Indian rupee

Equipment fund

Costs

working capital

Foreign

currency

Import

settlement fund

Borrowing

period

Short term or

long term

(Long-term equipment

capital limited)

The average borrowing

period is stipulated

according to the target

ndustry, funded use,

quotation price

Target Industry,

Fund Usage, by

price The average

borrowing period is

It is stipulated

Non capital goods:

Shipping Within 1

year from shipping

Within 5 years

Master Circular on ECB and Trade Credits Scope of application

Methods for financing companies entering the company are: ① Capital increase ② Local bank borrowing ③ Cross border bank loan

④ Cross border parent and child loan ⑤ Trade credit

When procuring funds from overseas, ECB (External Commercial Borrowing) regulation is applied (ECB regulation also applies to non-

convertible type preferred stock)

※ECB rules apply for non-convertible preferred stock

（１）Method of financing in India (corporate finance)


Source : Created by Mizuho Bank from RBI sources

87

2.6.1 Assumed Finance Method

For large-scale projects such as re-energy projects and industrial estate development projects, there is also the possibility

of financing utilizing project finance.

As a case example of project finance in India, co-financing of JBIC and MHBC covered solar power generation project in

India conducted by SBG Clean tech Project Co Private Limited, a company funded by SOFTBANK Group . For Mizuho Bank's

loans, insurance coverage by Japan Trade Insurance (NEXI) is insured.

In this project, SBG Cleantech constructed, owned and operated a solar power plant with a total generation capacity of 350

MW at Solar Park, which is established in the Kurunur district of southern India in the state of Andhra Pradesh, India. Over

25 years, the Indian state-owned thermal power utility NTPC Limited)

（２）How to raise funds in India (project finance)

Government

guarantee

Review conditions and issues to receive government

guaranteed bonds (guaranteed principal, interest

payment).

Supplement

rate

Emergency risk 100%

Credit risk 90%

Loan ratio

interest rate

currency

Credit rating

Environmental

and social

considerations

Consistent with the arrangements of the Government

of India and JBIC "International Cooperation Bank

Guidelines for Confirmation of Environmental and

Social Considerations"

Conditions for financing etc.



88Source : JICA



（3）JICA’s Gujarat Investment Promotion Program

NO Policy Items Major Policy Actions

1

Enabling GIDC's capacity to develop world class

industrial estates

Develop world-class industrial estates across the state

–Promote sustainability and green initiatives in Industrial development

–Enable ease of doing business by providing quality support and last mile infrastructure

–Companies in GIDC estate can consult various matters with GIDC's satellite office near the area in a timely manner –Development of

a Business Plan for next 5 years for GIDC

–Create a task force group responsible for developing plans that align with the needs of industries.

–Promote sustainable industrial park measures to reduce water, and power intensity in Industrial estates.

–Appointment of relevant officers to the satellite office

2

Single window system for GIDC industrial estates –Enhance Ease of Doing Business in Gujarat by enabling 100% online approvals for set up/ operations/ expansion in GIDC estates

–Integrate application and payment for common user facilities into the online system

–Adopt an online process for disposal of files and

other correspondence

3

Strengthening the Single Window for new investments

in Gujarat

Set up and operationalize a comprehensive single window system

Create an investment monitoring framework

Update and integrate applications on the new single window portal; developing security and online payment capabilities at the same

time

Create an investment monitoring framework to measure the approval timeline

Create a comprehensive database with project profiles, sector reports, country reports etc.

Facilitate grounding of investments in the state

Create a policy research cell in iNDEXTb. Research on industrial climate and recommend improvement areas/sectors. The cell will

provide policy/incentive inputs

Enable private sector participation in infrastructure projects within the State by developing capability to implement PPP projects

Conduct training sessions/trainsfor nominated people to improve skills for structuring and implementation of PPP projects

Develop a project monitoring matrix for monitoring of 5 selected projects

Monitor the selected projects in accordance with the project monitoring matrix

4 Strengthening of iNDEXTb Enhance quality of training institutions in the state, by creating Gujarat Apex Training Institute (GATI)

5

Capacity building of the PPP cell Create a roadmap for an apex training institution in PPP Mode agreeable amongst all stakeholders including private players.

Prepare benchmarking standards for trainers and trainees based on international affiliations

6

Apex Training Institute and Training of Trainers (ToT)

for Skill Development

Perform a state level skill gap analysis & district level skill gap analysis

Identify and implement new models of industry participation in vocational training

Skill certification program –Recognition of Prior Learning

7

Strengthening of Gujarat Skill Development Mission &

Skill Gap Study

Perform a state level skill gap analysis & district level skill gap analysis

Introduce new training trades. Modify existing course curriculums for removal of obsolete training trades.

8Acceleration of infrastructure development Small infrastructure Project Empowered Committee will select the priority projects and allocate budget properly

The administrative departments and implementing

89Source : Join



（4）Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN)

Public inventor fond “JOIN” can be one method for infrastructure development.

JOIN support infrastructure project with joint equity investment and supporting management and negotiation with local

government. Between October 2014 to March 2017, amount of investment is around 200 million USD.

Scheme Investment process

90

Regulation on ECB (External Commercial Borrowing) is based on "Master Circular on ECB and Trade Credits" of Reserve

Bank of India (RBI). In addition to fund procurement from overseas, rules related to trading credits such as buyer's credit

and supplier's credit are also determined Has been done.

"Master Circular on ECB and Trade Credits" is revised by the RBI on July 1 each year (in principle, revised in January and

March 2016).

Master Circular on ECB and Trade Credits

Trade CreditsExternal Commercial Borrowing (ECB)

Buyers Credit Supplies CreditsCross border

Bank loan

Cross-border

Parent-child loan

Importer settles funds

From financial

institutions etc. To

borrow in a foreign

currency

Importer is an

exporter

Defer the

settlement deadline

against

（1）Master Circular on ECB and Trade Credits

2.6.2 Regulation and features of finance in India



Foreign Currency Indian Rupee

Track ⅠMedium term borrowing (average borrowing period 3 years or more,

average borrowing period 5 years or more)

Track ⅡLong-term debt (average borrowing over 10

years)

Track ⅢMedium term borrowing (average

borrowing period 3 years or more,

average borrowing period 5 years or

more)

Renter ① International banks ② International capital markets ③ IFC, ADB,

etc. International financial institutions ④ Export credit institutions

(JBIC etc.) ⑤ Equipment exporters ⑥ Foreign shareholders ⑦Overseas long-term institutional investors ⑧ Indian local bank

bases

The left ① ~ ⑦ The left ① ~ ⑦

Borrowing

industry

① Manufacturing ② Software ③ Shipping / airline ④ Company in

SEZ ⑤ Infrastructure related company ⑥ Infrastructure related

nonbank ⑦ Holding company etc. * Change this time: ⑤ 6 ⑦added. However, period, amount of money, hedge restriction is

applied

Industries subject to Track I and REIT etc.

Track Ⅲ target industries and ① non-

bank ② R & D 3 training (excluding

educational institutions) ④ infrastructure

support enterprises ⑤ logistics services

etc.

Use of funds ① Equipment Import Settlement Funding ② Domestic Capital

Goods Purchase ③ New Project ④ Existing Equipment ⑤Overseas JV · Direct Investment of Subsidiary ⑥ Purchase of

Stock Accompanying Privatization of State-owned Enterprises ⑦Trading Traded Credit Refinancing ⑧ Shipping · Imported Capital

Goods Settlement Fund ⑨ Term Previous ECB loan refinancing

without shortening ⑩ Shipping, airline ship / aircraft purchase ⑪Working capital from foreign shareholders (average borrowing

period: 5 years or more)

Adaptable to all funds use except for real

estate, capital market investment, domestic

corporate stock acquisition, sublease funds for

other entities (excluding loans for holding

company's SPV), land purchase

Applicable to all funds use except for real

estate, capital market investment,

investment in domestic companies,

sublease funds for other entities, land

purchase

Non-banks are: (1) subleasing to the

infrastructure sector ② secured loans for

facility funds ③ adaptable for lease asset

purchase fund related to domestic

enterprise capital investment in India

Maximum

interest rate

3 to 5 years: 6 months LIBOR or index rate + 300 bp

More than 5 years: 6 months LIBOR or index rate + 450 bp

Annual rate SP upper limit 500 bp Based on market rate

91

TrackⅠ:①3years for ECB upto USD50M or its equivalent.②5years for ECB beyond USD50M or its equivalent.TrackⅡ10years imespective of the amount.

TrackⅢSame as under TrackⅠ.

* Average borrowing period calculation formula:

Grace period + (Total repayment count -1) / Annual Repayment times × 2

(In case of principal equal repayment)

(Source) Based on RBI document etc. Mizuho Bank International Strategy Information Dept.


2.6.2 Regulation and features of finance in India


（2） ECB Detail

92

2.7 Impact on Environment improvement & on society and

Analysis on CO2 reduction

2.7.1 Indian environmental law

93

（1） Law concerning water pollution, air pollution, environmental protection, etc.

In construction and operation of infrastructure development projects, such as industrial park development, and operation in

industrial parks, business operators are obliged to observe the following environmental laws and regulations.

Especially in recent years, citizen's interest in environmental problems has increased and there is a possibility of developing

into an environmental lawsuit against the project, so it is necessary to pay sufficient attention.

Classification Name of laws Outline of laws and regulations

Environmental

law concerning

water pollution

The Water (Prevention and Control Pollution) Act,1974 Established in 1974. It is a law aimed at preventing and restricting water pollution

and improving water quality, regulating standards for water quality and drainage. In

addition to specifying the authority and functions of the central and state pollution

control committee for water pollution prevention regulations, the agreement on the

use of rivers as drains and the provision of drain outlets etc.

The Water (Prevention and Control Pollution) Rules,1975 Established in 1975. Detailed function of Indian Central Pollution Control

Committee (CPCB). Regulation for water analysis at the analytical institution

owned by Indian Central Pollution Control Committee (CPCB)

Environmental

law concerning

air pollution

prevention

The Air (Prevention and Control Pollution) Act,1981 Established in 1981. Act for the prevention, control and reduction of air pollution

law. Provisions the authority of the Indian Central Pollution Control Committee

(CPCB) and the State Pollution Control Committee (SPCB). For example, the State

Pollution Control Committee has been designated the pollution control area and

authorized to restrict industrial activities in that area

The Air (Prevention and Control Pollution) Rules,1982 Established in 1982

Environmental

law concerning

environmental

protection

The Environmental (Protection) Act,1986 Established in 1986. Basic law on environmental protection, prescribing central

government, state authority etc. to prevent, control and reduce environmental

pollution

The Environmental (Protection) Rules,1986 stablished in 1986. It is enacted based on environmental protection law. Regulate

the conditions for installation of factories etc. and emission standards of pollutants

discharged from factories etc.

Forest law Established in 1980. Forest protection law

2.7 Environment Improvement Effect and Social Impact

Source : Created by Mizuho Information Research Institute from various sources

2.7 Environmental Improvement Effects, Social Influence and energy based C02 reduction

94

（2） Law concerning noise and waste disposal

Classification Name of laws Outline of laws and regulations

Environmental law

concerning The

Noise pollution

prevention

The Noise Pollution(Regulation and

Control)Rules,2000

For noise generated from factory facilities and manufacturing processes,

the level of noise to the surrounding area must be controlled within the

reference value. The reference value is provided as "Quality standard

concerning environmental noise of the atmosphere" in this rule

Environmental law

concerning The

Hazardous and

Other Waste

pollution

prevention

The Hazardous and Other Waste (Management and

Transboundary Movement) Rules, 2016

Regulation on the owner of the facility which handles, discharges, collects,

stores, packs, transports, uses, treats, processes, reuses, regenerates,

prepares, co-processes, utilizes, sells, moves and disposes hazardous

waste. It is necessary to submit a prescribed application form and obtain

permission from the Central Pollution Control Committee (CPCB). In

addition, it is necessary to manage hazardous waste according to specific

rules. The definition of "hazardous waste" is prescribed in the regulations

The Bio-Medical Waste (Management) Rules, 2016 Persons who emit, collect, receive, store, transport, treat, dispose of, and

handle biological medical waste ( hospitals, nursing homes, clinics, clinics,

animal hospitals, animal houses, pathology laboratories, blood banks, etc.)

It is necessary to submit a prescribed application form and obtain

permission from CPCB.

The Municipal Solid Waste (Management & Handling)

Rules, 2010

The State Pollution Control Committee (SPCB) submits an assessment

report on urban waste management to the central government (Ministry of

the Environment, Ministry of Forests) annually.

The Batteries (Management & Handling) Rules, 2001

as amended

Manufacturers / importers relating to the manufacturing process, trading

and use of batteries or parts thereof · repairers · assembler · traders ·

recyclers · auctioneers · consumers · bulk consumers. Submit a

prescribed report on sales and repurchases semi-annually.

The E-Waste (Management) Rules, 2016

Manufacturer · Consumer · Sales · Transfer · Purchase · Collection ·

Storage · Processing Consumer · Recycling Center Distributor · Electronic

retailer · Rebuilder · Recycler. Submit a prescribed application form and

obtain permission from CPCB.

2.7.1 Indian environmental law




95

（1） Flow of environmental impact assessment in India

The environmental impact assessment system in India is prescribed by the Environmental Impact Assessment Notification

2006 in accordance with Article 5, Paragraph 3 of the Environmental Protection Act 1986.

Environmental impact assessment is a process for acquiring environmental clearance (EC) required for project

implementation.

The flow of the procedure to enter India is as follows. It is necessary to acquire environmental clearance after land

acquisition and acquire "Consent to Establishment (CTE)" based on the Air Pollution Control Act · Atmospheric Water

Pollution Control Act.

After acquiring CTE, we set up "Consent to Operation (CTO)" by setting discharging amount, exhaust gas, waste

discharging method, waste discharge standard, reuse / recycling condition etc.

2.7.2 India's environmental impact assessment system

Acquis

itio

n o

f

envir

onm

enta

l cle

ara

nce

180/2

25 d

ays

or

more

Perm

issi

on t

o e

stablish

under

the e

nvir

onm

enta

l

law

3 t

o 4

month

s

(targ

et

2 m

onth

s)

Construction

development permission

45 to 60 days

Access to infrastructure

(Electricity, water, gas etc.)

30 to 45 days each

Under the

environmental law

Operation

permission

Under factory

law

Authorization

Under factory

law

Authorization

Dete

rmin

ati

on o

f dest

inati

on

Tax law

AuthorizationRegis

trati

on /

Noti

ficati

on /

Indust

rial

Lic

ense

(as

necess

ary

)

Com

pany e

stablish

ment

/ re

gis

trati

on

(in t

he c

ase

of

not

bein

g e

stablish

ed)

Land a

cquis

itio

n

Perm

issi

on o

n f

ore

ign d

irect

invest

ment

(if

necess

ary

)

Const

ructi

on o

f fa

cto

ries

etc

.

Begin

nin

g o

f opera

tion




96

（2） Acquisition of environmental clearance

When implementing projects that may have a significant impact on the environment, it is necessary to acquire environmental

clearance (environmental permission).

In order to implement 8 categories and 39 kinds of projects (newly established, expanded), it is necessary to acquire

environmental clearance.

In project implementation, project proponents of large scale project (Category A) need to obtain environmental clearance of

the Ministry of Environment and Forest (MoEF). Proponents of small and medium-sized projects (category B) will also

receive environmental clearance from the state environmental impact assessment body (SEIAA: Environment Impact

Assessment Authority).


Pro

ject

Pro

ponent

Costal Regulation

Zone Clearance

Under CRZ

Notification

Forest Clearance

Under Forest

(Conservation)Act

1980,amended 1988

Before starting any

activities, obtain the

Enviromental

Clearance as Schedule

of EIA Notification

Befo

re s

tart

ing constr

ucting a

ctivitie

s,o

bta

in

Consent

to E

sta

blis

h(C

TE

)fro

m G

uja

rat

Pollu

tion C

ontr

ol B

oard

On C

om

ple

tio

n o

f pro

duction p

lant

and

EM

S,

apply

fo

r C

ontr

ol B

oard

Category A Project

Obtain EC from

Ministry of

Environment&Forests,

New Delhi

Category B

Project

Obtain EC from

State Level

Environment

Impact

Assessment

Authority, Gujarat

Site Near

Costal

Area

General

Area

Site Near

Forest

Area

Not

covered

Acq

uis

itio

n o

f

en

vir

on

men

tal

cle

ara

nce




97

（3） Role of environmental impact assessment agency


Central government State government

MoEF：Ministry of Environment and

Forest

SPCB：State Pollution Control BoardCPCB：Central Pollution Control Board

SEAC：State Expert Appraisal

Committee

EAC：Central Expert Appraisal

Committee

SEIAA：State Environmental Impact

Assessment Agency

Category A projects are assessed for environmental impact by the National Expert Review Committee (EAC: Central Expert

Appraisal Committee).

Projects of category B1 are evaluated by the State Expert Appraisal Committee (SEAC), and environmental clearance is

obtained from the State Environmental Impact Assessment Agency (SEIAA).

The Central Pollution Control Committee (CPCB) and the State Pollution Control Committee (SPCB) are windows of

establishment permit (CTE) and operation permit (CTO).



98

（4） Procedures for environmental impact assessment in India

Environmental impact assessment (EIA) is carried out according to the flow below.

① Screening

② Scoping and consideration of alternatives

③ Baseline data collection

④ Impact prediction

⑤ Assessment of alternatives, delineation of

mitigation measures and environmental impact

statement

⑥ Environment Management Plan

⑦ Public hearing

⑧ Decision making

⑨ Monitoring the clearance conditions

Determine whether the proposed project will be subject to environmental clearance. Screening standards

are as follows: ① Scale of Investment ② Type of development project ③ Location area.

Identify the important environmental aspects of the proposed project and consider alternative proposals

for the proposed project.

Collect basic data related to locate project and location area.

Predict the impact on the important environmental aspects (air, water, land, biological, socio-economic)

of the proposed project and alternative plan.

Compare and evaluate environmental aspects of all proposals including alternatives. Study alternate

plans concerning target area and introduction technology and prepare countermeasure proposal.

Based on the results of the impact assessment, prepare draft Environmental Management Plan (EMP) and

Environmental Impact Assessment Report.

We hold public hearings and collect opinions from local residents, environmental NGOs etc. on proposed

project.

Discuss with the environmental impact assessment agency and experts, decide project implementation

and environmental measures, etc.

In both the construction phase and the operation stage of the project, conduct monitoring on predictions

in advance and forecasts of environmental impact and implement corrective measures according to

circumstances.

Source : From the Ministry of the Environment and Forest "EIA Manual", created by Mizuho Information Research Institute



99

（5）Projects that require environmental clearance (infrastructure development related)

List of projects that require environmental clearance (infrastructure development project)

Project typeCategory

conditionsA (Central Government Level） B （State Government Level）

Airport All projects. Including runway for commercial

use

― ※Runway that does not have oil storage / lubrication facilities and

air traffic control is excluded

Port (ship anchorage) All projects ―

Industrial park / Export Processing

Zone (EPZ) / Special Economic

Special Zone (SEZs)

When one of the tenant enterprises in the

industrial park falls under category A, the

entire industrial park is treated as category A

Industrial park with area over 500ha. Even

one of the tenant companies falls under

category B

Apply general conditions and specific conditions

※In an industrial estate with an area less than 500 ha, if a

tenant company does not fall under any category of

category A or B, no environmental clearance is required

※In an industrial estate with an area less than 500 ha, if the

construction project is over 20,000 m 2, or the development

area is 50 h or more, subject to environmental clearance

General hazardous waste treatment,

intermediate storage and final

disposal site (TSDF)

Only incineration plants, incineration plants

and landfill disposal facility complex facilities

Landfill site Apply general conditions

Medical waste disposal facility ― All projects

Harbor, breakwater, dredging Cargo handled amount is over 5 million tons

(excluding fishing ports)

A port with less than 5 million tons of cargo

handling volume or a fishing port with catch

more than 10 thousand tons

Apply general conditions

※Including dredging inside and outside the harbor

※For the dredging for the maintenance of the port, an

environmental management plan (EMP) is created and

excluded from environmental clearance when it is included

in projects subject to environmental clearance

Highway New project for the National Highway

And extension of highway of 100 km or more,

road widening of 40 m or more, lane

maintenance of 60 m or more, etc.

New projects for all state highways.

Expansion project of state expressway in hilly

terrain (over 1,000 m above sea level) and

nature conservation area

Apply general conditions

Ropeway nstallation at an altitude of 1,000 m or more

All projects in protected areas

All projects except Category A Apply general conditions

Sewage treatment facility (CETPs) ― All projects Apply general conditions

General Waste Management

Facility (CMSWMF)

― All projects Apply general conditions

2.7.2 Environmental Impact Assessment Scheme in India



100

(5)Projects that require environmental clearance (construction / construction, regional development, housing

improvement etc.)

List of projects that do not require environmental clearance (construction / construction, regional development, housing

improvement etc.)

Project TypeCategory

conditionsA (Central Government Level） B （State Government Level）

Building and Construction projects >20,000 sq. mtrs and <1,50,000 sq. mtrs. of

built-up area.

The term “built up term area “for the purpose of this Notification

the built up or covered area on all floors put together including its

basement and other service areas, which are proposed in the

building or construction projects.

Note 1:-The projects or activities shall not include industrial shed,

School, College, Hostel for educational institution, but such

buildings shall ensure sustainable environmental management,

solid and liquid waste management, rain water harvesting and

may use recycled materials such as fly ash bricks.

Note 2:- “General Conditions” shall not apply.

Townships and Area Development

projects.

Covering an area ≥50 ha and or built up

area ≥1,50,000 sq. mtrs.

A project of Township and Area Development Projects covered

under this item shall require an Environment Assessment Report

and be appraised as Category ‘B1’ Project.

Note:

“General Conditions” shall not apply.

2.7.2 Environmental Impact Assessment Scheme in India



101

（1）Outline of assumed business

Target business

(Smart city technology

etc.)

Environmental

improvement effect etc.Life improvement effect Regional economic effect

Environmental

clearance compliant

Construction

of traffic

information

platform

Promotion of public

transportation (unified IC

card introduction)

Energy saving, CO2

reduction, air pollution

prevention

Shortening commuting

time, improving

convenience, reducing

traffic accidents

Dissemination of

electronic money,

revitalization of related

industries

Not covered

Modal shift to rail cargo Energy saving, CO2

reduction, air pollution

prevention

Relaxation of traffic

congestion

Facilitation of logistics Not covered

Realization

of distributed

energy

network

Introduction of renewable

energy such as PV

CO2 reduction Not covered

Introduction of EV traffic,

EV station

CO2 reduction, air

pollution prevention

Revitalize related

industries, create jobs

Not covered

Introduction of smart

meters in factories and

others (+ EMS)

Energy saving, CO2

reduction

Revitalize related


Not covered

Introduction of centralized

processing system for

factory wastewater

Water pollution prevention,

energy saving, CO2

reduction

Revitalize related


coverage

2.7.3 Environmental Improvement Effects that this Project May Experience · Impact on Environmental Society

Most of this project is out of the scope of environmental clearance.

Energy saving, CO2 reduction, pollution prevention), living improvement effect (shortening commuting time, improving

convenience, reducing traffic accidents), regional economic effect (related We tried to evaluate the promotion of industry,

revitalization of region, promotion of company location, promotion of housing development, employment creation).

In particular, we attempted to estimate the CO2 reduction effect based on the hypothesis regarding the scale of introduction.



102

（2）Promotion of use of public transportation (introduction of IC card, facilitation of transfer by unification)

This project aims to promote the use of public transportation of the residents of the city through the construction of a traffic information

platform in the Ahmedabad metropolitan area, such as facilitation of transfer by unifying IC cards.

ICT related advanced technologies such as artificial intelligence (AI) technology for big data analysis, contact type / non-contact type IC card,

sensor, camera, signal control, etc. are assumed as related technologies in Japan that can be introduced.

At Gujarat's Initiatives In Environment Conservation, we announced that 40% of private cars (four wheels, three wheels, two wheels) will be

transferred to public transportation such as BRTS.

Through this project, we can expect about 325 thousand tons of CO2 reduction effect, environmental improvement effect such as air pollution

control.

In addition, regional economic effects such as shortening of commuting time, improvement of convenience, life improvement effect such as

reduction of traffic accidents, efficiency of logistics, promotion of company location, development of residential areas, promotion of

employment etc. are also expected.

Classification Effect etc.

Environmental

improvement

effect

Energy saving, CO2

reduction effect

Approximately 325,000 t-CO 2 (See next page)

Environmental burden

reduction effect

Reduction of NOx / SPM emission accompanying improvement of fuel economy by alleviating

traffic congestion

Life

improvement

effectOther

Improve convenience Improve the convenience of residents by easing traffic congestion, shorten commuting time

Improve safety Reduced traffic accident

Other Shortening commuting time

Regional

economic effect

Promotion of related

industries

Promotion of transportation related industry, IT industry

Revitalize local economy Facilitation of logistics by easing traffic congestion, promotion of company location, promotion of

residential area development

Employment creation Variety of employment creation in transportation related industries and emerging cities




103

(3) Introduction of renewable energy such as PV


Environmental

improvement

effect

Energy saving, CO2

reduction effect

約74.3万t-CO2 （次頁参照のこと）

Environmental burden

reduction effect

Reduction of NOx / SPM emission at grid power plant

Life

improvement

effect

Improve safety Secure stable power

Regional

economic

effect


industries

Promotion of energy-related industries

Revitalize local

economy

Promotion of company location by securing stable electric power, promotion of housing

development

Employment creation Job creation in PV industry

This project is to build a distributed renewable energy network by promoting the introduction of solar power generation to

industrial parks and others.

Besides solar power generation systems, storage battery systems, control technologies, etc. are assumed as related

technologies that can be introduced in Japan.

This project is consistent with the re-energization policy promoted by the Government of India and the Government of

Gujarat State. In Gujarat Province, we set a goal of 500 MW solar power generation.

Through this project, we can expect about 743 thousand tons of CO2 reduction effect and environmental improvement effect

such as air pollution control.

In addition, we are also expecting regional economic effects such as stable improvement of living conditions such as

electricity security, revitalization of PV related industry, development of residential areas, promotion of employment.




104

（4）Introduction of EV traffic, EV station

This project promotes the introduction of EV traffic while trying to develop EV infrastructure in Ahmedabad metropolitan

area.

About 1,000 buses the Ahmedabad City Transportation Service (AMTS) is driving. In order to alleviate traffic congestion and

at the same time to reduce GHG emissions, the Bus Rapid Transport System (BRTS) has been introduced. It is also a plan to

introduce EV bus to BRTS.

Technologies related to EV stations such as EV bus, operation control system, charger etc are assumed as related

technologies in Japan that can be introduced.

Here we set up a scenario to introduce the EV bus for commuting to a new industrial estate and calculate the amount of CO2

reduction. CO2 reduction effect of about 5,700 t-CO2, environmental improvement effect such as air pollution control can be

expected.

We also expect regional economic effects such as revitalization of EV-related industries, development of residential areas,

promotion of employment, etc.


Environmental

improvement

effect

Energy saving, CO2

reduction effect

CO2 reduction effect of about 57 million t-CO2

Reduction of

environmental impact

Reduction of NOx / SPM emissions and reduction of noise by reducing fuel for

automobiles

Life improvement

effect

Regional

economic effect


industries

Promotion of EV related industries

Revitalize local

economy

Promotion of company location by securing stable electric power, promotion of housing

development

Employment creation Employment creation in EV related industries




105

（5）Introduction of smart meter at each facility (+ EMS)


Environmental

improvement

effect

Energy saving, CO2

reduction effect

CO2 reduction effect of about 297,000 t-CO2

Reduction of

environmental impact

Reduction of NOx / SPM emission by energy saving

Life improvement

effect

Regional

economic effect


industries

Promotion of energy conservation related industries

Revitalize local economy Promotion of company location by securing stable electric power, promotion of

housing development

Employment creation Job creation in energy conservation related industries

This project promotes the introduction of visualization and energy saving measures by introducing smart meters and energy

management system (EMS) at facilities such as factories that are located in four industrial parks and others.

In addition to solar power generation systems, power storage systems, control technologies, etc. are assumed as related

technologies that can be introduced in Japan.

This project is consistent with energy conservation policy promoted by the Gujarat State Government. Gujarat State aims to

reduce energy consumption of public facilities and private facilities by 30% (Gujarat's Initiatives In Environment

Conservation).

Through this project, we can expect CO2 reduction effect of about 297,000 t-CO2 and environmental improvement effect

such as air pollution control.

In addition, regional economic effects such as the promotion of corporate location such as stable electric power securing,

revitalization of energy conservation related industries such as ESCO and promotion of employment accompanying it are

also expected.




106

（6） Modal shift to rail cargo

2.7.3 Environmental Improvement Effects that this Project May Experience · Impact on Environmental Society and CO2 reduction


Environmental

improvement

effect

Energy saving,

CO2 reduction

effect

CO2 reduction effect of about 1,000 t-CO 2

Reduction of

environmental

impact

Reduction of NOx / SPM emission by reducing automobile fuel

Life improvement

effect

Improve

convenience

Relaxation of traffic congestion

Regional

economic effect

Promotion of

related industries

Promotion of rail cargo related industries

Revitalize local

economy

Promotion of company location by improving transport efficiency, stabilizing, and reducing

distribution costs

Employment

creation

Job creation in rail cargo related industry

This project promotes shifting from truck transportation to railway transportation as a means of distribution of companies entering industrial

parks.

A modal shift to rail cargo enables collective mass transportation and reduction of large truck transport is expected to save energy, reduce

CO2, suppress air pollution, alleviate traffic congestion, etc.

As relevant Japanese technologies that can be introduced, locomotives / cargo transport systems, RFID (electronic tag) of transport

containers, and the like are assumed.

Here, assuming the transportation of new car from Suzuki's Gujarat factory to Kandla port, calculate the amount of CO2 reduction. It is

expected that CO2 reduction effect of about 1,000 t-CO 2, environmental improvement effect such as air pollution control can be expected.

In addition, we expect regional economic effects such as revitalization of railway cargo related industry, promotion of company location,

promotion of employment etc.



107

（7）Improvement of environment by introduction of centralized wastewater treatment system · Effect on

environmental society

By concentrating wastewater from factories moving into industrial estates, it is expected to realize efficient processing

compared to individual processing systems, reduce costs, reduce water regulation risk, etc. In addition, effective utilization

and stable utilization of water resources can be expected by regeneration and reuse of wastewater.

As related technologies that can be introduced, water treatment membranes, water treatment devices, sensors, control

systems, chemicals, etc., are assumed.

In addition, we expect regional economic effects such as promotion of water treatment related industries, promotion of

company location, employment creation etc.


Environmental

improvement

effect

Energy saving,

CO2 reduction

effect

Reduction of

environmental

impact

Water pollution prevention

Life improvement

effect

Improve

convenience

Public health improvement

Regional

economic effect

Promotion of

related industries

Promotion of water treatment related industries

Revitalize local

economy

Promotion of company location

Employment

creation

Job creation in water treatment related industry



2.7.3 Environmental Improvement Effects that this Project May Experience · Impact on Environmental Society and CO2 reduction

108

（Amount of CO2 reduction by shifting to public transportation） = （CO2 reduction by decrease of own vehicle commuting）－（ CO2 reduction by bus commuting）

（CO2 reduction by decrease of own vehicle commuting）＝Distance of commuting／Mileage×（decreased number of vehicle）×operational days×CO2emission factor

（ CO2 reduction by bus commuting）= Distance of bus operation／Mileage × number of bus × operational days×CO2emission factor

（Decreased number of own vehicle commuting ）＝commuting population × shifting rate to public transpiration

Number Unit

Parameters

Distance of commuting （round trip） 30 km

Mileage （4 wheeler） 15 km/L

Mileage （2 wheeler） 53.6 km/L

Mileage （3 wheeler） 23.6 km/L

Mileage （Diesel bus） 3.6 km/L

Annual working days 300 Day

Annual bus operational days 300 Day

Commuting population

Ahmedabad+Mahesana District)1,640,000 People

Commuting population （Ahmedabad） 800,000 People

Number of Bus 1,000 Unit

Shifting rate to public transportation 40 %

CO2emission factor（Petrol） 2.322 kg-CO2/L

CO2emission factor(Disel） 2.619 kg-CO2/L

Number unit

Result

Energy Consumption

4 wheeler 117,919,201 L

2 wheeler 213,998,550 L

3 wheeler 24,982,882 L

Bus 2,500,000 L

CO2 Emission

4 wheeler 273,808,385 kg-CO2

2 wheeler 496,904,633 kg-CO2

3 wheeler 58,010,251 kg-CO2

Bus 6,547,500 kg-CO2

CO2 Reduction

4 wheeler 109,523,354 kg-CO2

2 wheeler 198,761,853 kg-CO2


Bus ▲6,547,500 kg-CO2

Total 324,941,808 kg-CO2

Total 324,942 t-CO2

Number in `000 Possession

Automobile

2 wheeler 171.2 78%

4 wheeler 26.4 12%

3 wheeler 8.8 4%

others 13.9 6%

220.3 100%

Calculation

Calculation of CO2 reduction by Promotion of public transportation (unified IC card introduction)

2.7.4 Related material for energy based CO2 reduction



109

（Amount of CO2 reduction by solar energy）＝（Grid power reduction by solar energy）×Grid emission factor

（Grid power reduction by solar energy）＝（Power consumption in industrial estate）× Ratio of renewable energyCalculation

Data unit

Parameters

Area of industrial estate 3,168 ha

Operational hours 4,380 h

Unit of power consumption in Industrial

area0.214 MW/ha

Power consumption in Industrial area 2,971,272 MW

Ratio of renewable energy 25 %

Grid emission factor（Western India） 1.00 t-CO2/MWh（2013-2014）

Data unit

Result

Grid power reduction 742,818 MWh

CO2 reduction 742,818 t-CO2

Industrial estate gross area unit

Area

MBSIR 500 ha

Bol SANAND 708 ha

Khoraj 1,436 ha

Becharaji 524 ha

計 3,168 ha

Item Data unit

Neemrana industrial

estate

Area 467 ha

Power

consumption100 MW

Calculation of CO2 reduction by Introduction of renewable energy such as PV




110

（CO2 reduction by EV bus）＝（CO2 reduction by own vehicle ）-（CO2 reduction by EV bus）

（CO2 reduction by own vehicle）=Mileage×（Number of decreased own vehicle commuting）×Operating days × emission factor

（CO2 reduction by EV bus）=Distance of EV bus／Mileage ×Number of EV bus × Operating days × Grid mission factor

（Number of decreased vehicle）＝Number of employee × Shifting rate to EV bus

Calculation

Number unit

Parameters

Distance of commuting (round trip) 30 km

Mileage（4 wheeler） 15 km/L

Mileage（2 wheeler） 53.6 km/L

Mileage（3 wheeler） 23.6 km/L

Mileage（Diesel bus） 3.6 km/L

Mileage （EV bus） 1.03 km/kWh

Annual working days 300 Day

Annual operating days of bus 300 Day

Number of employee 61,732 Employee

Number EV bus 62 Unit

Shifting rate to EV bus 20 ％

CO2emission factor（Petrol） 2.322 kg-CO2/L

CO2emission factor（Diesel） 2.619 kg-CO2/L

Grid emission factor（Western India） 1.00 t-CO2/MWh（2013-2014）

車種 Number unit

Result

Energy

Consumption

4 wheeler 4,438,645 L

2 wheeler 8,055,206 L

3 wheeler 940,391 L

EV bus 539,405 kWh

CO2 reduction




bus 539,405 kg-CO2

CO2 reduction



3 wheeler 436,717 kg-CO2

bus ▲539,405 kg-CO2

Total 5,699,457 kg-CO2

Total 5,699 t-CO2

Industrial estate Area unit

Area of

Estate

MBSIR 500 ha

Bol SANAND 708 ha

Khoraj 1,436 ha

Becharaji 524 ha

Total 3,168 ha

Item Data unit

Neemrana

Industrial estate

Area 467 ha

Number of

employee9,100

emplo

yee

‘000 Possession

Automobile

2 wheeler 171.2 78%

4 wheeler 26.4 12%

3 wheeler） 8.8 4%

others 13.9 6%

220.3 100%

Calculation of CO2 reduction by Introduction of EV traffic, EV station




111

（CO2 reduction by EMS ）＝（ Grid power reduction by EMS ）×Grid emission factor

（Grid power reduction by EMS）＝（Power consumption in the industrial estate）×Energy Saving Rates

Calculation

Number unit

Parameters

Area of Industrial estate 3,168 ha

Operational hours 4,380 h

Unit of power consumption in Industrial

area0.214 MW/ha

Power consumption in Industrial area 2,971,272 MWh

Energy Saving Rates 10 %

Grid emission factor （Western India） 1.00 t-CO2/MWh（2013-2014）

Number unit

Result

Grid power reduction by EMS 297,127 MWh

CO2 reduction 297,127 t-CO2

Industrial Estate Area unit

Area of industrial

estate

MBSIR 500 ha

Bol SANAND 708 ha

Khoraj 1,436 ha

Becharaji 524 ha

Total 3,168 ha

Items Data unit

Neemrana Industrial

Estate

Area 467 ha

Power

consumption100 MW

Calculation of CO2 reduction by Introduction of EMS system such as smart meter




112

（CO2 reduction by rail cargo）＝（CO2 emission by truck ）-{（CO2 emission by truck after shift)+(CO2 emission by rail after shift)}

（ CO2 emission by truck before shift ）=Distance / Mileage × Gross Weight × emission factor

（ CO2 emission by truck after shift ）= Distance / Mileage × Gross Weight × emission factor × Ratio of railway freight

（CO2 emission by electric locomotive after shift) = Distance / Mileage × Gross Weight × emission factor × Ratio of railway freight

（CO2 emission by Non electric locomotive after shift) = Distance / Mileage × Gross Weight × emission factor × Ratio of railway freight

Calculation

number unit

Parameter

Distance of logistics (round trip) 300 km

Average mileage of truck 0.286 L/km・TEU

Consumption ratio of electric locomotive 0.00013 MWh/TEU・km

Consumption of energy per no electric locomotive 0.043 L/TEU・km

Ratio of railway freight 60 %

Weight per １TEU 20.5 ton

Number of produced vehicle in Gujarat 250,000 Unit per year

Number of unit of sea transport (50% of vehicle) 125,000 Unit per year

Total unit of vehicle transport 125,000 Unit per year

Unit number of vehicle per truck 10 Unit

Weight of a vehicle 1.5 T

Gross weight per cargo with 10 vehicle 15 T

Gross weight 187,500 t

Average number of carrier per cargo 6 Unit

Gross weight per vehicle 1.5 T

Gross Weight per freight cargo 9 T

Expected number of unit of freight 20,833 Unit

Weight of freight 187,500 t

Ratio of shifting to modal 60 %

CO2emission factor（Diesel） 2.619 kg-CO2/ｌGrid emission factor（Western India） 1.00 t-CO2/MWh（2013-2014）

Number unit

Result

Energy Consumption

Truck logistics 784,756 L

Electric locomotive 357 MWh

Non Electric locomotive 117,988 L

CO2 consumption

Truck 2,055,276 kg-CO2

Electric locomotive 356,707 kg-CO2

Non Electric locomotive 309,010 kg-CO2

CO2 consumption

after shift to modal

Truck 822,110 kg-CO2

Electric locomotive 214,024 kg-CO2

Non Electric locomotive 185,406 kg-CO2

CO2 reduction

Case for Electric locomotive 1,019 t-CO2

Case for Non Electric

locomotive1,048 t-CO2

Calculation of CO2 reduction by Modal shift to rail cargo




113

2.8 Advantage of Japanese Companies and Prediction of Benefits to Japan

114

2.8.1 Analysis of the advantage of Japanese companies


（１）Confirmation of advantage of Japanese technology

As a result of the interview, the following were extracted as Japanese technology which is assumed to be introduced in this

Smart Infrastructure project.

Smart infrastructure technology of Japanese companies has superiority over other countries‘ technologies regarding safety,

stability and reliability, and it is expected to gain market share in the Indian market.

Because the operation and maintenance (O&M) is the source of important revenue for the solution under consideration, it is

necessary to develop business through collaboration between Japanese companies and Indian companies.

Company

NOIndustry Technology

Introduction

possibilityAdvantage Issues etc.

Advantage of Japanese

TechnologyNote

1ICT

Electric

BRTS

Face recognition

security

DMIC

○ ○

Extension and extension of

BRT lane

Unified IC card standard

Finance

System vendors, in-vehicle

devices, sensors, signal control,

etc.

It is important to be a prime

contractor to design and operate the

whole project

2ICT

ElectricSmart meter ○ ○

Collaboration with Indian

service companies

Distribution system related

technology, etc.

There are many leading companies

in overseas enterprises, competition

intensified

3 Trading

EV Charging Station

VPP（Virtual Power

Plant）○ ○

Collaboration with Indian

service companiesQuick charging system etc.

In emerging markets there is a

possibility that EVs with features

such as small size and low price will

spread

4Engineerin

g

Advanced Water

Treatment System○

○O&M

Installation experience in IndiaProcessing technology, sensors

etc.

In order to compete with overseas

companies, Japanese companies

need to develop a business

structure that provides a

comprehensive service from EPC to

O&M

5 Rail cargo

Transportation

System Management

Operation &

Maintenance

○○

O&M

Traffic management and rail

widths do not adapt

Transportation System

Management

Operation & Maintenance etc.

Interlocking with hardware

technology (vehicle, EPC) and

software technology (control,

operation management) is required


115

2.8.2 Benefits to Japan (economic effects) forecast

（1）Concept of predicting benefits (economic effects) to Japan

In 2015, the Government of India plans to construct 100 smart cities nationwide under the smart city plan “Awas Yojna

Mission” as part of making Make in India “Make in India” administration Announced. In Gujarat province, six cities including

Ahmedabad City were selected. The Government of India invests a total of 480 billion Indian rupees over the next five years.

The budget allocated to one city is about 5 billion Indian rupees (5 years worth).

With these business opportunities as opportunities, developmental developments such as (1) entry into the smart

infrastructure business of Japanese companies, (2) extension of industrial park dedicated to Japan, (3) improvement of

business environment centered on smart infrastructure, and (4) expansion of Japanese companies . Developmental

development such as is assumed.

As for the scale of business of Japanese companies, it is estimated that 10 to 5 billion yen (estimated from the budget size of

India) per company by entry into the smart infrastructure business at the time, as a direct investment in the industrial park

after that, 50 to 20 billion yen is expected per company (estimated from the investment record so far).


Japanese companies

Participation in smart

infrastructure business

Expansion of exclusive industrial

park for Japan

Strengthening the supply chain

Smart infrastructure core

Improvement of business

environment

Full-scale entry of Japanese

companies

About five companies

1 to 5 billion yen scale per

company

About 50 companies

5 billion to 15 billion yen per

company scale

Approximately 300 companies

5 billion to 20 billion yen scale

per company

Dividend from

overseas

subsidiary to

parent

company ·

Expansion of

payment

amount of

royalty etc.


2.8.2 Benefits to Japan (economic effects) forecast

（1）Expansion of exports from Japan

Direct investment from overseas to India has become active under Mody 's Make in India. Investment from Japan and the

number of companies entering the country also increased.

Along with the advancement of Gujarat state companies of Japanese companies, business infrastructure such as industrial

parks and infrastructure improvement, supply chain strengthening and other business infrastructures are moving forward,

expanding the amount of procurement of parts and products from Japan, dividends from overseas subsidiaries to parent

companies · royalty Expansion of the payment, export of various kinds of goods from Japan required for local life are

expected.

Dividend from overseas

subsidiary to parent company ·

Expansion of payment amount of

royalty etc.

Expansion of procurement of parts

and products from Japan

Expansion of imports of diverse

products from Japan required for

local life

（ Strengthening business

base ） Infrastructure

development such as

industrial park

Strengthening the

supply chain

Improvement of urban

infrastructure

Expansion of employment

Increase income

Improve public health

Improvement of standard of

living

Benefit effect to India Benefit effect to Japan

Expansion of exports from Japan



116

117

３. 10 year vision for the S. M. B. area and milestone

3.1 10 year vision P.118

3.2 Milestone P.120

118

S.M.B.'s 10 year vision: "One of the world's smart industrial metropolitan areas, centred on the automobile industry"

3.1 10 Year Vision

A vast market with 1.5 Billion

population(World’s most populous country by 2020)

Make in India(The third largest automobile

manufacturer country in the 2020s

Hard and Soft aspects(Tax reform, smart city, rail-road network)

Industry promotion policies(By 2020、new Gujarat Industrial Policy)

New Cities and Industrial parks(13 SIRs including Dholera SIR in

pipeline, Gift City)

Improve regional and national

connectivity(DMIC, DFC, Bullet Train, Metro, Airports)

One of the world's smartest industrial metropolitan areas

(Global platform with state-of-the-art infrastructure, to support production of 2

Million automobiles)

Clustering of automobile industry(Expansion around MB-SIR/Sanand)

Industrial area development plan(Regional development of over 100 kms by

MB-SIR)

Advance industrial park

development(Mandal and Sanand III industrial parks)

Trends

S.M.B 10

year vision

Pillars of

Growth

Revitalization

through improved

regional connectivity

Public transport

Metro, BRT using

ICT

Improving railway

freight system

Revitalization

through energy

efficiency by state-of-

the-art technology

Use of EV

(Virtual Power Plants

of Electric Vehicles)

Water treatment

system

Region

Housing for all

Social Infra

(Medical/Educatio

n/Housing)

Peaceful

livelihood

(Crime and

accident prevention)

Living with locals

Nurturing and inviting

skilled resources

HR Development

Job creation

Social Infra

(Business/

Education/Medical)

Others(Hotels

etc.)

FDI,Attracting Indian

companies

Hybrid

Infrastructure land

development

Japanese

Industrial parks

Strengthen GIDC

Incentives

Trends in India Trends in Gujarat Trends in the SMB region

Mobility Smart Energy Community Human Resource Industrial Infrastructure

Strengthen

existing

119

Focus on long term (10 years) , add elements to the existing policy matrix and promote regional development

3.1 Recommendations for development

①Monitoring and support of Gujarat

state master plan implementation

(Infra , MBSIR etc.)

②Introduction of smart

infrastructure (Industrial park water

treatment, electricity supply and

distribution system by green

automobile, etc.)

③Encouraging businesses for skill

development programs

④ Promotion and monitoring of

projects (DFC, Smart Grid, IC tag

etc)

⑤Strengthen Investment promotion

(Japan Desk, GIDC staff training,

Incentives etc.)

Private investment

promotion

Skill development

Infrastructure

① Strengthening industrial development corporation for development

②Central window for industrial development

③Enhance Single window function (Parks outside GIDC purview)

④Strengthening iNDEXb

⑤Enhance teams working on PPP

⑥Establishing institutes to train skilled workers and trainers

⑦Strengthen skill development institutes and analysis of Skill Gap

⑧ Promotion of infrastructure projects

Current Policy Matrix

Areas of Focus for next 10 years

Medium to long term development of Target Region

＋

Gujarat State Government is working on long-term regional development of target areas such as MB-SIR, in terms of infrastructure,

human resource, industrial parks. Japanese government, in consultation with the state government, has devised “Gujarat State

Investment Promotion Program” of JICA with a Policy Monitoring matrix consisting of 3 pillars, 8 items to promote Policy Action

In addition to the above activities, aspects required in the mid – long term for the Targeted area were identified during this study and

Pillars of growth along with the proposed schedules are shown.

3 Pillars Eight policy points

Mobility

Smart Grid

Community

Mobility

Smart Energy

Community

Human Resources

Industrial

Infrastructure

Strengthen intra-regional traffic

Efficient public transportation system utilizing ICT

Completion of DFC

Introduce systems and technologies for Energy Conservation (Energy

efficient systems and Virtual Power Plants by Electric Vehicles)

Harmony with existing residents and development of easy-to-live, easy-

to-work environment (housing in the area, security, hospital, school etc.)

New

initiatives

Pillars of growth Policy points for development

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 ～

Forecast

Dev

elop

men

t

Asp

ects

Infrastructure

Development

120

3.2 Future Course of Action

(Infrastructure Development)

Short Term(1~3 years) Mid-Term(4~6 years) Long Term(7~10years)

Mandal Estate

(Phase 2)

Unify & Enhance Single

Window function

Develop Industrial Area

Promote Investment

Function

Enhance PPP Team

Promoting Infra Investments

Sanand Estate Ph.II

Sanand III Industrial Estate

Allotment of Land (expected to commence from September 2018)

JICA Program Loan

Items (~FY１９)

GIDC Industrial Estates (other

than Bagapura)

Phase I of Industrial Area in MB-SIR

Existing Industrial

Estates are expected

to be filled up soonMascot Industrial Park

MB-SIR Approvals/Basic Infrastructure

Development

Phase II of Industrial Area in MB-SIR

New Industrial Areas

Enhance GIDC Functions

Plan Investment Incentive

No. Of

Japanese

Companies: 25

Passenger Car Mfg.

Capacity of the region –

1 Million Cars

MB-SIR Development

MB-SIR Ind. Area

Development Support

Support for

Sanand III

Development

Sanand III

Development

(Ind. Area/Infrastructure)

Continue Monitoring of Infrastructure

Development

Complete Road Developments as per plan

Monitoring DFC

Approvals

Enhance systems for

GIDC Personnel

Training for GIDC

Enhance Japan Desk

Function

75

additional

Japanese

Companie

s to be

setup in

the region

25＋α

additional

Japanese

to be

setup in

the region

Training GIDC Personnel

Support for MB-

SIR Development

Widening SH-7、133 arterial rd.

No. Of

Japanese

Companies: 50

Passenger Car Mfg.


2 Million Cars

No. Of

Japanese

Companies: 100

No. Of Japanese

Companies:

125+ α

Actions by Private Cos.

(under Implementation)

Actions by Gujarat Govt. (Future)Actions by Private Cos.

(future)

Actions by Gujarat Govt. (under

Implementation)

Actions by Japanese Govt.

(under implementation)

Actions by Japanese Govt. (Future)

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 ～

Forecast

De

velo

pm

en

t

As

pec

ts

Human

Resources

121

3.2 Future Course of Action

(Human Resources)

JIM@Mehsana - A Few Hundred Graduates per year

JICA Program Loan

Items (~FY１９)

Training of Industrial

Workforce

Skill Gap Analysis

JIM@Mandal - About 30 Graduates per year

New JIMs – 500 Graduates per year (Indicative)

Workforce trained in Basic Skills – 1000 members per year (Indicative)Develop of Basic Skills

training for Workforce

JIM@Mehsana - Increase Student Intake JIM@Mehsana - Increase Student Intake

JIM@Mandal - Increase Student Intake JIM@Mandal - Increase Student Intake

Total

Industrial

Workforce

10,000

Total

Industrial

Workforce

20,000

Support Set up of

New JIMs

(Weekend

Schools etc.)

Support Japan India Institute for Manufacturing (JIM) (such as Teaching Equipments, Teacher Training)

Support training of Workforce in

Japanese Language

Impart Japanese Language Education by tie up with Local Institutions(Second Course on Foreign Language)

Impart Japanese Language Education by tie up with Local Institutions(Second Course on Foreign Language)

Start of Weekend Training

Schools (2018～)

Industrial Workforce Development Program as

per Industry requirements

Support Industrial Workforce

Development Program

No. Of

Japanese

Companies: 25

Passenger Car Mfg.


1 Million Cars

No. Of

Japanese

Companies: 50

Passenger Car Mfg.


2 Million Cars

No. Of

Japanese

Companies: 100

No. Of Japanese

Companies:

125+ α


Actions by Private Cos.

(under Implementation)


(future)


Implementation)




2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

2028

～

Forecast

De

velo

pm

en

t

As

pec

ts

Mobility

Energy

Community

122

3.2 Future course of action

(Others)

Ahmedabad Metro

opens

MB-SIR approval / basic infrastructure development (Phase 1)

MB-SIRdevelopment

Promotion of residential area development

DFC monitoring centre

Mumbai Ahmedabad

Bullet Train

Operational

DFC

Partial openingDholera New International

Airport opens

MB-SIR Basic Infrastructure Monitoring

Residential area development (within MB-SIR)

* Low price housing

MB-SIR approval / basic infrastructure development (Phase 2)

Social Infra(within MB－SIR)

Support for Residential area

development and Japanese

companies

Improving Social Infra

Support Japanese

participation

Residential area development (within MB-SIR)

Social Infra development（ Within MB－SIR）

Support for Residential

area development and

Japanese companies

Support for social infra

development and

Japanese companies

By 2027

population

within MB

SIR :

330,000

Monitoring of MB-SIR basic infrastructure

By 2022

population

within MB

SIR :

140,000

Support and monitoring MB-SIR final plan

Indian Residential development ( outside MB-SIR)

Reduction of Traffic in target area

Participation of private companies in traffic congestion alleviation system using ICT

Public Bus transport

Rail lines by G-ride

Railway Freight distribution centre

Indian Residential development ( outside MB-SIR)

Social Infra outside MBSIR

(Industrial Security, Hospital, Residence, CSR etc.)Social Infra outside MBSIR

Energy & environment conservation plan

Social Infra around MBSIR

(Industrial Security, Hospital, Residence, CSR etc.)

BRT Extension for long routes

Energy & environment

conservation planning

EV charging station, EMS smart meter etc.

Water treatment facility (industrial & housing)

BRT extension for longer routes

No. Of Japanese

Companies: 25No. Of Japanese

Companies: 50

No. Of Japanese

Companies: 100

No. Of Japanese

Companies:

125+ α


Actions by Private Cos. (under

Implementation)


(future)


Implementation)




123

The report has been organized to provide opinions based on the analysis by the

experts, supported by extensive collection of information and hearings in India and

Japan. The opinions of this report is those of Mizuho Bank and is formulated without

aiming to incorporate the opinions of the Ministry of Economy, Trade and Industry

(METI) of Japan.

Disclaimer

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