The Study on the Strategy for Promoting Japanese Investments in Gujarat and Tamil Nadu, India -A Proposal for Japanese Specific Industrial Park Development
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The Study on the Strategy for Promoting Japanese Investments in Gujarat and Tamil Nadu, India -A Proposal for Japanese Specific Industrial Park Development- Study Report March 2011 Engineering and Consulting Firms Association, Japan Japan Development Institute i ii Map i Pictures Road from Ahmedabad to Sanand Sanand Tata Nano Factory Road from Ahmedabad to Bhavnagar Dholera SIR, Nano City Internal Road in MPSEZ, Mundra Container Terminal next to MPSEZ Vibrant Gujarat Summit 2011 MOU Signing at Vibrant Gujarat 2011 ii SIPCOT Sriperumbudur Inner Road SIPCOT Sriperumbudur Renault Nissan Factory Renault Nissan Factory Mahindra World City Inner Road Mahindra World City Residential Sri City Inner Road Sri City Business Centre iii Contents Executive Summary ...................................................................................................................... 1 Chapter 1 : Background ................................................................................................................ 8 1-1. Background and Objective ............................................................................................. 8 1-1-1. Background ................................................................................................................ 8 1-1-2. Objective of this Project ........................................................................................... 10 1-1-3. Scope of Work ......................................................................................................... 12 1-2. Targeted Region ........................................................................................................... 12 1-2-1. West DMIC Corridor ............................................................................................... 13 1-2-2. South Corridor ......................................................................................................... 15 Chapter 2 : West DMIC Corridor: Gujarat .................................................................................. 17 2-1. Potential State for Japanese Investment .......................................................................... 17 2-1-1. Macroeconomics ...................................................................................................... 17 2-1-2. Industries .................................................................................................................. 18 2-1-3. Infrastructure Condition ........................................................................................... 20 2-1-4. Investment Facilitation............................................................................................. 22 2-2. Analysis of Potential IP Development ............................................................................. 23 2-2-1. Current Status .......................................................................................................... 23 2-2-2. Location Analysis .................................................................................................... 24 2-2-3. Development/Operation Analysis ............................................................................ 35 2-2-4. Additional Facility Analysis .................................................................................... 37 2-2-5. Issues Identified ....................................................................................................... 38 2-3. Proposed Strategy/Development Plan ............................................................................. 39 2-3-1. Short Term Project: Sanand IP ................................................................................ 39 2-3-2. Mid Term Project: Ship Building SEZ .................................................................... 40 2-3-3. Long Term Project: Dholera IP ................................................................................ 42 Chapter 3 : Southern Corridor: Tamil Nadu ................................................................................ 43 3-1. Potential Province for Japanese Investment .................................................................... 43 3-1-1. Macroeconomics ...................................................................................................... 43 3-1-2. Industries .................................................................................................................. 44 3-1-3. Infrastructure Condition ........................................................................................... 46 3-1-4. Investment Facilitation............................................................................................. 48 3-2. Analysis of Potential IP Development ............................................................................. 49 3-2-1. Current Status .......................................................................................................... 49 3-2-2. Locational Analysis ................................................................................................. 51 3-2-3. Development/Operational Analysis ......................................................................... 59 3-2-4. Additional Facility Analysis .................................................................................... 61 3-2-5. Issues Identified ....................................................................................................... 62 3-3. Proposed Strategy/Development Plan ............................................................................. 63 3-3-1. Immediate Term Project: Sri City SEZ .................................................................... 63 3-3-2. Short Term Project: Vallam/Vadakal IP .................................................................. 63 3-3-3. Mid-Long Term Project: Along the Corridor .......................................................... 64 Chapter 4 : Recommendation for PPP projects in India .............................................................. 66 iv List of Tables Table 1-1: FDI Inflow by Country: India and China (Unit: in USD million) ............................... 8 Table 1-2: Profile of Industrial Accumulation in Asia (Selected Countries) ................................ 9 Table 1-3: Japan India EPA (Selected Major Products) .............................................................. 10 Table 1-4: State Wise Break up for FDI Inflows (Rank) (Unit: USD in millions) ..................... 12 Table 1-5: Number of Japanese Companies ................................................................................ 13 Table 1-6: DMIC Project Influence Area .................................................................................... 14 Table 1-7: PRIDe Corridor Project .............................................................................................. 15 Table 2-1: Top 10 District and Total Demographic Situation in Gujarat .................................... 17 Table 2-2: GSDP and Per Capita of Gujarat ............................................................................... 18 Table 2-3: Investment in Gujarat (Vibrant Gujarat Summit) ...................................................... 18 Table 2-4: Industrial Composition in Gujarat .............................................................................. 19 Table 2-5: SEZ Status in Gujarat ................................................................................................. 23 Table 2-6: District Wise Number of Investment (1983-2010: as on April 30, 2010) .................. 24 Table 2-7: Japanese Companies in Gujarat ................................................................................. 24 Table 2-8: DMIC/SIR Project ..................................................................................................... 25 Table 2-9: Key Agencies for Industrial Development in Gujarat ................................................ 35 Table 2-10: Summary of Current Development & Operation Scheme ....................................... 37 Table 2-11: Existing Environmental Facilities in Gujarat (As of January, 2010) ....................... 38 Table 2-12: Comprehensive Environmental Pollution Index of Gujarat ..................................... 38 Table 3-1: Top 10 District and Total Demographic Situation in Tamil Nadu ............................. 43 Table 3-2: GSDP and Per Capita in Tamil Nadu ......................................................................... 44 Table 3-3: Main Industries in Tamil Nadu .................................................................................. 45 Table 3-4: Level of Groundwater Exploitation in Tamil Nadu ................................................... 47 Table 3-5: Eligibility for Structured Package for Investment ..................................................... 48 Table 3-6: Strikes and Lockouts during February to April 2009................................................. 49 Table 3-7: District-wise Distribution of MSMEs in Tamil Nadu ................................................ 49 Table 3-8: Sector-wise MSMEs in Tamil Nadu (As of March 2007) ......................................... 49 Table 3-9: Status of SEZ in Tamil Nadu ..................................................................................... 50 Table 3-10: Japanese Companies in Tamil Nadu ........................................................................ 51 Table 3-11: Ongoing Project of Chennai Port Development ...................................................... 51 Table 3-12: Ongoing and Planned Project