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GUJARAT : The Role Model

GUJARAT : The Role Model
Gujarat is becoming synonym of sustainable growth. Its pro-industry approach is helping attract big investment and making other states envy
Gujarat is in the limelight, and it has enough reasons to be in the limelight. It is not only the fastest growing state, it is also the powerhouse of Indian economy. Clearly, it can be the role model for other states.
Pro-business approachGujarat is the home for dynamic industrialists and business entrepreneurs. It is emerging as EVA (Economic Value Added) state with sustainable industrial growth. The industrial policy acts as a catalyst to face the challenges to manage inevitable volatility of industrial cycles. The fundamentals of its economy are strong and vibrant. The pro-business approach of the government has felicitated Gujarat’s relentless drive toward industrialisation by making the state an ideal business and investor friendly destination, both for domestic and foreign.
Investor friendlyGujarat is the only state to emerge as investor friendly and has achieved the distinction of being the top-most industrially developed state in India in respect of investment in industrial sector and second in respect of value of production and value addition in industrial sector in India.
The Gujarat Industrial Development Corporation (GIDC), which was established with a goal of accelerating industrialisation in Gujarat, has set up 168 industrial estates, and another 106 are being developed in different parts of the state.
To encourage investment in the state, Gujarat also gives autonomy and funds to industrial estates to implement maintenance and modernisation measures. It is also encouraging organisations to set up units in these zones by giving them tax holidays and subsidies like exemption from stamp duty and registration fees.
Port liberalisationThe maritime sector of Gujarat is one of the most proactive and well developed with non-major ports handling about 287.81 tonnes of cargo during 2012-13. Capacity of 43 tonnes was added during 2012-13, augmenting the capacity of Gujarat ports to 366 tonnes. Gujarat Maritime Board has multiple port privatisation models to promote private player participation in Gujarat ports and enhance its holistic development.
Gujarat has pioneered the concept of port liberalisation and tactically used it to become India’s fastest growing state by breaking the ground with different forms of privatisation, aptly converting minor ports into one of the biggest revenue creators. It has devised SPVs (Special Purpose Vehicles) to build rail links between new ports and main rail system. Augmenting its presence, private ports has also significantly improved its efficiency and capacity with the central government’s recent scheme for special economic zones.
Consistent power supplyOne of the key factors for industries to run smoothly is power, and Gujarat is having a good record of consistent power supply for commercial use. Gujarat has planned to build adequate capacity in generation,   transmission and distribution of power supply, which includes rationalisation of power tariff structure, encouraging power generation from non-conventional sources, focusing on energy conservation, and improving the quality of services to consumers.


"The MEGA metro rail project would be a pioneer of its kind in India due to the adoption of latest technology."
– Sanjay Gupta,    Executive Chairman, MEGA
Gujarat is one of the largest power generators in India. Nearly 100 per cent of Gujarat’s 18,000 villages have electricity connection for 24-hour power, thanks to Jyotigram Yojana. When it comes to gas-based thermal electricity generation, Gujarat sits on pole nationwide with the national market share of over 8 per cent. Gujarat has two of the three liquefied natural gas (LNG) terminals in the country (Dahej and Hazira) and two more LNG terminals are proposed at Pipavav and Mundra. Gujarat is the only state to have a state wide gas grid of 2,200 km.
Fast-track railways and metrosThe total length of railway lines in the state is 5,171 km, comprising 2,409 km of broad gauge, 1,886 km of metre gauge, and 876 km of narrow gauge lines. To put Gujarat on the path of fast-track growth, the state has introduced MEGA metro project. The project will be of 83 kilometres, connecting all the important points of Ahmedabad to Gandhinagar. It will include around 64 kilometres of elevated corridor and 19 kilometres of underground.
Smooth roadwaysWhen it comes to manage roads and highways, Gujarat sets international standards. About 87.9 per cent of the total roads in the state are asphalt surfaced, and the state has 98.96 per cent village connectivity with all weather roads, which is one of the highest among other states in India. During the last 25 years, the state road network has expanded in length from around 50,000 km to about 74,000 km and the paved part increased from about 66 per cent to 91 per cent of the total length.

"Gujarat, with its all inclusive, sustainable and rapid growth, is emerging as a globally preferred place to love in and to do business."
– Narendra Modi, Chief Minister, Gujarat

According to a Planning Commission study, supported by World Bank, Gujarat set an example of best practices in road management. Gujarat has also excelled in bringing a very close collaboration between the government and private sector. It has a sustainable planning based on holistic cost analysis, outsourcing, engineering functions, execution of main roads, and monitoring quantitative performance by posting main performance indicators on Internet. The state also plans to implement a new monitoring system, according to the study.
The confidenceThe state is the front runner in development and privatisation of infrastructure, and the confidence gets resonance in its Chief Minister Narendra Modi’s words (as quoted in gujaratmetrorail.com), “Gujarat, with its all inclusive, sustainable and rapid growth, is emerging as a globally preferred place to love in and to do business.”


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