INDISTRIES

During the past 32 years Gujarat has made remarkable strides on the industrial font. The industrial economy of the state rested primarily on textile and textile auxiliaries/ ancillaries at the time of its inception as a separate state in 1960. The industrial activity was mainly concentrated around main cities like Ahmedabad, Baroda, Rajkot and Surat.

But with the planned industrial development thereafter, coupled with various favorable factors such as entrepreneurial skill of the people, congenial labour relationship, dependable power supply, well developed infrastructure facilities and catalytic role of the state industries corporations, the industrial scenario of the state has changed substantially. Gujarat today has become one of the foremost-industrialised states in the terms of industrial production in the country.

The number of working factories has increased to13, 762 employing 7.44-lakh person's s on June 1990. Similarly, the number of small-scale industries registration stands at 1,25,213 as on November30, 1991.

Gujarat has also achieved remarkable diversification in industrial activity. Some of the items manufactured in Gujarat and having reasonable share in total production in the country include soda ash (91.5%);azo dyes (90%); iodized salt (74%); vat dyes (56.2%); cotton cloths (30.7%); viscose filament yarn (26.3%); sulfuric acid (25.6%); nitrogenous fertilizer (24.6%); DMT (23.0%); phosphatic fertilizer (22.1%); caustic soda (19.2%); polyster filament yarn (12.5%);vanaspati (11.5%); paper and paper board (10.7%) LPG (10.5%); nylon filament yam (10.5%);cotton yarn (10.1%); cement (8,4%) and sugar (6.6%). The percentage in the bracket in8isates the state's share in the national production during 1989-90. Hazira near Surat, is emerging as one of the fastest developing industrial centers in the country where about Rs 10,000 crores are to be invested in next 10 years in some major industries such as ONGC's gas processing facilities, Indian Oil Corporation's LPG Bottling Plant, Heavy Water Plant, expansion of existing KRJBHCO's Fertilizer Plant, Petrochemical Complex by Reliance and GSPCL sponge iron project.

Weaver at Handloom Weaving

Besides, there are a large number of projects under implementation at various other centers like Valia, Vagra, Tagadia where some of the large projects pertaining to cotton yarn, sugar, rubber chemicals and intermediates, methanol, cement, PP filament yam, granite slabs are coming up.

Of the 2,190 large projects under implementation in mining and manufacturing sector in the country, Gujarat accounts for 225 projects with an investment of over Rs. 40,000 crores. As such, the per capita investment in Gujarat now accounts for Rs. 5,451 compared with the national average of Rs. 2,160.

A large number of oilfields have been discovered by ONGC at Gandhinagar which will give a further boost to the development of hydrocarbon based chemical and petrochemical industries in the state.

Furnace in The Panchmahals Steel Ltd., Kalol (Dist. Panchmahals

New Industrial Policy

In order to accelerate the pace of industrial development especially in the industrially backward areas of the State, the Gujarat Government has announced its new Industrial Policy, offering a package of incentives. The new package offers incentives like investment subsidy, sales tax benefits additional incentives to employment intensive industries, pioneer unit incentives and special incentive for setting up 100 per cent export-oriented units. It also covers special incentives for the development of electronics industry and incentives for rehabilitation of sick industrial units.

Under the new policy, as many as 140 talukas out of 184 talukas of he states are made eligible to avail the benefits under the incentive package. In addition, eight special regions are made eligible for incentives. Earlier only Dangs was availing benefits under Category-I areas. Under the new policy, 86 talukas out of 140 talukas and eight special regions are included in Category, I while the remaining 54 talukas are covered under Category II. The entrepreneurs, therefore, will have wide choice of locations under this policy.

The new policy also aims at giving priority to cottage, village and tiny sector industries. The tiny sector industries have been separated from the small-scale sector and offered the incentives at higher rate. The Government aims at generating 10 lakh employment opportunities through promotion of industries during the next five years.

For the small, medium and large-scale units, the policy offers attractive schemes. The pioneer unit incentive scheme has been made more attractive. A unit having investment of about Rs. 5 crores and located in an eligible taluka can avail benefits under the pioneer scheme. 10 such units can avail this benefit now. A new scheme for units having investment of over RS. 100 crores has been announced in the form of prestigious Unit Scheme. Such projects can be located anywhere in the State except in city areas. The scheme is further modified for projects having investment of over Rs. 300 crores. In order to boost export from the country, the state government has announced a special scheme of assistance for 100% export oriented units. The incentive package for various schemes normally cover capital investment subsidy and sales tax benefits. These incentives are normally offered on investment in fixed assets. The definition of fixed assets has been liberalized, covering land, building, plant and even the mobile van required for the plant. The incentive package is made eligible not only for new units but also for units undertaking expansion and diversification. The new industrial policy, therefore, will go a long way in promoting a large number of industrial units in the state.