South The Industrial Hub

Opportunities for Micro Small and Medium Enterprises (MSMEs) Vision 2020

"Gujarat shall enter into an exciting era of accelerated economic growth and cohesive social development creating benchmarks for the rest of the country."

Source: Industries and Mines Department, , Vision 2020 1

Why invest in ?

Southern Gujarat contributes more than South Region Locational Advantage of 50% share of Micro Small and Medium Southern Gujarat for MSMEs contributes 51% of sized Enterprises (MSMEs) unit in  Accessibility to 4 Ports Gujarat (2006-15). Region’s share to state’s MSME share Gujarat’s MSME investment is 33% and  Close proximity to economically developed cities- share to employment is 46%, making (265 km), (307 km) alone contributes MSME the economic backbone of the  Connected with Golden Corridor region. Dominant MSMEs of the region 46% of state’s MSME include Textile- manufacturing &  Soon to be part of Delhi Mumbai share Industrial Corridor Project retailing, Diamond- cutting & polishing, Chemical & Petrochemical industries, Dominant industry of the Pharmaceutical and Plastic Statistics of South Gujarat region includes Textile, manufacturing industry. Diamond Polishing,  Contributes 20% (12 million) to Southern Gujarat comprises of seven state population Chemical & districts; Surat, , Narmada,  Covers 12% (24,034 sqkm) area Petrochemical, , Dang, , and Tapi. of Gujarat Pharmaceuticals  Population density is 511 person/sqkm, compared to and Plastic Industry Gujarat’s density of 308 person/sqkm

42% 70 Population 2011 45% 60 40% Decadal population 35% 50 61 lakh South Gujarat growth 2001-11 30% 40 21% 21% 25% 30 13% 20% 12% 8% 20 15% 17 lakh 15% 16 lakh 10% 10 6 lakh 8 lakh 2 lakh 13 lakh 5% 0 0% Dang Narmada Tapi Navsari Bharuch Valsad Surat Population and Decadal Growth of Districts, South Gujarat

Source: Census of , 2011 1 2

Available Infrastructures

Southern Gujarat is Road Connectivity connected with Golden National Highway: NH6, NH8, NH228 State Highway: SH6, SH8, SH707, SH197, SH65 and etc. Corridor NH6 connects Surat city horizontally with the eastern part of India connecting to Nagpur, Raipur and Kolkata Main line of Railway NH8 is part of - vertically connects Surat city with Mumbai in the South; and Ahmedabad, connects Surat with Jaipur, Delhi in North NH228 connects Surat city with and Navsari and Ahmedabad in North, and Mumbai in State Highway connects surrounding major cities, , , , Valsad, Ahmedabad and South Vadodara

Surat domestic airport proposed to Rail Connectivity handle Cargo NaMajor Railway Station : Surat Railway Station (ST)

Other important railway stations: , Ankleshwar, Distance from Surat to; , Bharuch Jn. Dungri, Kim, Kosamba Jn., ,

Ahmedabad 265 Nabipur Jn., Navsari, Panoili Sachin, Sanjan, Sayan Mumbai 307 Jn, Valsad and Bhavnagar 338 Rajkot 449 Jamnagar 547 Jaipur 699 Air Connectivity Nagpur 755 Surat Domestic Airport is connected to; Delhi, Jaipur and Raipur 1,036 Kandla. Delhi 1,140 Kolkata direct flight is proposed for Hyderabad, Goa. And 1,863 All distances in km international flight to Dubai proposed.

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Available Infrastructures (Cont.)

Gujarat is dotted with Dahej Port 49 Port, of which . Chemical Terminal, LNG Terminal, Solid Cargo Port. Kandla is referred as the . Cargo handles: : Coal, rock phosphate coal & coke, salt. Exports: ‘Major Port Petroleum Oil Lubricant, Fertilizer and Chemicals Gujarat’s non major . Jetty: Reliance Industries Ltd, Dahej Harbour Infrastructure Ltd, ports account for 32% Gujarat Chemical Port Terminal Co.Ltd., Petronet LNG Ltd., Adani of total national Petronet Port Pvt.Ltd., Ro-Ro Terminal cargo handled in 2015- . Cargo handling capacity: 31.19MMT p.a 16.

South Gujarat has four ports Dahej Port, Magdalla Magdalla Port Port, Port and Vansi Port. . Cargo handles: Coal, cement, clinker, crude oil, steel, naphtha, and fertilizer, lime stone, iron ore, LNG, container cargo, rock Dahej Port has India’s phosphate first dedicated Chemical . Jetty Information: GMB Jetty, Essar, Reliance; Gujarat Ambuja Terminal Cement Ltd. Dahej and Hazira port . Cargo handling capacity: 38.05MMT p.a has operational LNG Terminal Hazira Port . Cargo handles: Liquid Natural Gas, Ethylene SPM EDC-RoRO and Vansi is fishing port, GAS, Cement, sponge iron LPG and Maroli Port in is proposed. . Jetty Information: Larsen & Toubro Ltd., M/s Reliance Industries Ltd, M/s Gujarat Ambuja Cement Co. Ltd, M/s Larsen & Toubro Ltd ; M/s Essar Steel Ltd and M/s EBTL . Cargo handling capacity: 32MMT p.a

Source: GMB, 2015-16 Map of South Gujarat

Dahej Port

Hazira Port

Magdalla Port

Vansi Port 3 2

Available Infrastructures (Cont.)

Gujarat has power surplus situation

70% of fresh water resources located within Southern Gujarat

Electricity Water Gas State has several ongoing programs for . Dakshin Gujarat Vij . Gujarat Water Supply . entrepreneurship Company Limited and Sewerage Board company Limited development, Skill . Torrent Power . Sardar Sarovar Project Up gradation and certified training courses

GIDC tied up with Directorate of Employment & Training to undertake training and skill up- gradation program

Training Bank Effluent

. 26 NSDC . Bank of Baroda is . 12 Operational, . 3 ITIs the lead Bank . 5 Proposed CETP . 15 GIDCs Skill . 2 Effluent Pipeline Upgradation Centers tied with CED

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MSME Distribution

South Gujarat is mainly engaged in activities like yarn production, weaving, processing and embroidery. Surat Wood, Chemical Allied has good synthetic Products, Agro, Paper, Engineering Units, Chemical Chemical, Readymade product markets, Industries, Rubber, Plastic, Garments, Tourism both production and Petro Products, Cotton trading Textile, Soda Water & Food, Unit: 960 Peanut Processing Investment: 6,165 lakh Employment: 4,298 Textile Industry of Surat Unit: 7,185 has Rs.45000cr Investment: 2,98,784 lakh Employment: 76,139 Agro based Products, investment, Paper, Engineering Unit, 34818lakh Repair and Servicing, employment and Mineral based Industries Textile, Diamond, 11,04,680 textile Engineering, Wood Product, Unit: 574 units (Source, DIC Surat) Rubber Plastic, Minerals, Investment: 15,970 lakh Petrochemicals Employment: 5,750

Approximately 80% of Unit: 1,73,006 Investment: 28,11,031 lakh Service Industry, total diamond exports Employment: 11,07,351 Tourism from India are from Surat (Source, DIC Surat) Unit: 8 Investment: 1,192 lakh Employment: 169 Dahej, Hazira, Bharuch and Valsad Agro based products, Textile, Pharmaceuticals, are the hub of chemical Chemical, Textile, Paper Mineral Based Industries industries in South and Paper pulp Industries Gujarat Unit: 2,838 Unit: 5,448 Investment: 80,909 lakh Investment: 4,45728 lakh Total MSME in Gujarat Employment: 19,943 Employment: 98,422 (2006-15) is 3,76,044 South Gujarat (2006- 15) is 1,73,006 and Government of Gujarat aims to strengthen the sector further to improve state Surat (2006-17) is economically. The Southern region of Gujarat contributes 51% of MSME units to the 3,13,781 state. Surat alone contributes 46% making it industrially most important district of the region. The key sectors of the region include Textile, Diamond, Pharmaceuticals, (Source: IC GoG 2017 & NIC Chemicals & Petrochemical and Mineral based industries. UAM, 2017) Source: Industries Commissionerate, MSME data 2006-15, GoG

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Available Industrial Infrastructures

4.1 Industrial Cluster

Gujarat has 419 Industrial Cluster, with Rs. 57,01,953 investment and 17,14,537 Government has employment. South Gujarat alone has 132 clusters, with investment of Rs. incentives for 34,47,999 and 10,65,745 employment . Cluster-based development is encourage as cluster development it improves cost competitiveness of the industries by way of creating common in Textile, Agro, Electronic facilities, developing market centres, brand names and promotion of skills. Manufacturing, IT/ITeS & other Manufacturing sectors. Surat Valsad Bharuch 95 20 Navsari Total 132 13 4 Clusters Government has Source: Industries Commissionerate, GoG 2017 incentives for

Industrial Park 4.2 Industrial Park development in Textile, Industrial park, encourage the industrial practice by providing an integrated IT/ITeS & other infrastructure in one location- supporting infrastructure includes roadways, Manufacturing sectors railroads, ports, high power electric supply, communication cables, water supply (large volume) and high gas lines. is well know for textile, and currently has 5 operational 11 textile parks. 13 textile 3 2 2 18 Private Bharuch Industrial Surat Valsad park are upcoming, and 5 Parks more are in proposal. (Source: DIC Surat, GoG 2017) 14 17 7 4 47 GIDC Bharuch Surat Valsad 5 Narmada Navsari Industrial Estate Source: List of In principal approval under the IMED Resolution No: BJT/1008/626/Part-I/G dated.20/10/2011 ;GIDC 2017

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Available Industrial Infrastructures (Cont.)

4.3 Special Economic Zone (SEZ)

Special Economic Zone (SEZ) is a specifically delineated duty free enclave for export & import trade. South Gujarat has 5 operation SEZ located in Surat and Bharuch.

5 Operational SEZ

• SURSEZ , Diamond & Gem Dev Corporation. Sachin, Surat Area: 40 ha, Sector: Multi Product • Surat Apparel SEZ, Vanj Area:57 ha , Sector: Apparel • Sterling SEZ and Infrastructure Limited, Bharuch Area:3380 ha, Sector: Multi Product • Jubliant Infrastructure Limited, Bharuch Area:160 ha, Sector: Chemical • Dahej SEZ, Bharuch Area:1,812 ha, Sector: Multi Product

4 Notified SEZ • H B S Pharma SEZ Pvt Ltd, Bharuch (J.B.Chemicals and Pharmaceuticals Ltd. Area:107 ha, Sector: Pharma • Gujarat Hydrocarbon and Energy SEZ Ltd.,Bharuch Area: 450 ha, Sector: Hydracarbon • Biotor Industries Limited, Bharuch Area:1,031 ha, Sector: Chemical (Agro based) • Gujarat Hira Bourse, Ichhapore, Surat Area:1,185 ha, Sector: Gems & Jewellery

2 In Principal Approval

• M/s. Anique Infrastructure Private Limited. Bharuch Area:1,380 ha, Sector: Multi Product • Gujarat Vittal Innovation City Ltd., Valsad Area: 1,100 ha, Sector: Multi Product

Source: SEZ India, www.sezindia.nic.in; 2017

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Available Industrial Infrastructures (Cont.)

4.4 Special Investment Region (SIR)

Special Investment Region (SIR) is an initiative of the Government of Gujarat to create large size Investment Regions / Industrial Areas and develop them as Global Hubs for economic activity supported by world class infrastructure. Gujarat is the only state in India to have enacted a Special Investment Regions Act. The SIRs have evolved in accord with Delhi Mumbai Industrial Corridor (DMIC) project. In Gujarat currently, 13 SIR’s are identified, of which nine lies within the immediate influence area of DMIC. The apex authority for SIR is Gujarat Industrial Development Board. Currently, ‘Petroleum, Chemicals and Petrochemical Investment Region’ (PCPIR) is the only functional SIR, and Aliyabet is the proposed SIR of South Gujarat.

Gujarat Petroleum Chemical and Petrochemical Investment Region (PCPIR)

Partially Commissioned: March 2017

Source: GIDC, OPaL; 2017

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Available Industrial Infrastructures (Cont.)

Development Plan, PCPIR

Key Industries, PCPIR

Source: GIDB 2017 9 5

Policy Supporting MSME

Gujarat Government has Industrial 18 policies, that are Policy 2015 directly or indirectly Electronics & associated with MSME. Industrial IT/ITeS Policy Policy 2016- 2016-21 21 (VAT)

Industrial Policy 2015, Industrial Policy (VAT) Electronics & Gujarat 2016, Textile Policy 2012, IT/ITeS Textile Policy Agro Policy 2016, Solar Startup Policy 2012 2016-21 Electronics Power Policy 2015, Policy 2016- Biotechnology Electronics & ITeS Policy 21 Policy 2016 2016, Manufacturing Cottage and Manufacturing Rural Industries Policy 2013 and Cottage Policy 2013 Policy 2016 Scale and Rural Industries Tourism Comprehensive Policy 2015- Policy 2016 are of prime Agro Business 20 Policy 2016-21 importance for MSME sector

Aerospace Gujarat and Defence Small Hydel Policy 2016 Policy 2016 Port Policy Waste to 1995 Energy Policy 2016

Wind Power Solar Power Policy 2016 Policy 2015

eGovernance Policy 2014

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Industrial Policy 2015 Incentives

5% up to Rs.25 Lakh/annum in municipal areas & Capital 7% up to Rs.30 Lakh/annum in other areas. 1% Interest to youth, women, 10% up to Rs.15 Lakh of loan in Investment additional subsidy Subsidy SC/ST, Physically Challenged. For MSME Service municipal areas & 15% up to Rs.25 Lakh Subsidy Sector, 5% with cap of Rs.25 Lakh/annum of loan amount in other areas

Award of Rs.2 lakh to Best MSMEs in Rs.5 Lakh for mentoring to SME each category along with Regional Awards of Start Up institutions & Rs.10 Lakh for RS.1 Lakh each from 5 regions. Separate Awards raw material, components for awards for Women, SC, ST, Young innovative process. Entrepreneur Rs.10,000/month to Innovator

50% cost of preparation of Sick 90%, 80% & 70% of Net VAT reimbursed to diagnostic report through Industries VAT Expert/Expert Agency with incentive Category A, B & C unit respectively ceiling of Rs.1 Lakh Rehabilitation

Exhibition through 100% reimbursement of fees to women, SC/ST, associations/federation/chamber. physically Reimburseme Market 60% of rent up to Rs.10 Lakh for challenged entrepreneurs for service fees for nt of CGTMSE Development International 60% of rent up to availing fees Rs.7 Lakh for National Fairs collateral free loans up to Rs.2 crore

60% of project cost for machinery & equipment. Rent to 50% up to Rs.50,000/annum rent assistance in 50% up to Rs.50 Lakh of project MSEs for R&D municipal areas & up to Rs.25,000/annum in other research to R&D institutions / Shed and areas for 3 years AICTE approved colleges Plots

50% up to Rs.50,000 on ERP, Quality Consultation fee @50% with cap of 20% up to Rs.50 Lakh of project cost Venture Rs.50,000 as promoter’s contribution Certification Capital 50% up to Rs.5 Lakh on ISI/WHO- GMP/Hallmark certifications

Raising 20% up to Rs.5 Lakh expenditure for Capital Patent 75% up to Rs.25 Lakh for obtaining raising of fund through SME via SME Registration patent registration Exchange

All incentives under the Industrial Policy 2015 are Technology available for the five year policy period unless 50% assistance of up to Rs.50 Lakh specified otherwise. For more details visit Acquisitions ic.gujarat.gov.in 11 7

MSME Facilitation Desk

Surat MSME facilitation desk is formed to provide guidance and assistance in the growth and development of the Micro Small and Medium Enterprises of Southern region of Gujarat. The investors of southern region may avail policy & incentive related guidance, financial guidance, gather knowledge on specific sector and its associated support from MSME facilitation desk. The desk is located at District Industry Centre (DIC), Surat.

Hand Holding ► Investor facilitation / interaction ► Guidance for filling forms, approvals, schemes, policies, incentives, etc. ► Handling investors’ queries ► Inter-departmental co-ordination

Financial Guidance► Guidance for financial availability ► Assistance for knowledge dissemination workshops / Seminars ► Information related to financial incentives through government schemes

Setting up of Enterprise ► Assistance for setting up MSMEs ► Sector specific knowledge & guidance ► Guidance on government procedures / approvals / clearances

Knowledge Support► Collaterals / brochures for the current policies & schemes ► Rebates/ subsidies available from central & state government ► Knowledge Repository

Surat Ahmedabad Industries Centre District Industries Centre 1st Floor District Industry Centre 1st Floor, Bachat Bhavan, Relief Road, C – Block, Narmada Bhavan, Jail Road, 2nd Floor, C Ahmedabad 380001 Vadodara 390001 block Bahumali Building Phone: 079 - 25503568 Phone: 0265 - 2411400 Nanpura, Surat Mail-id: [email protected] Mail-id: [email protected] Phone: 0261 2465928 Rajkot Mail-id: msmedesk- Gujarat State Financial Corporation Office of the Industries Commissioner [email protected] Race Course Ring Road, Block No. 1, 4th Floor, Udyog Bhavan, Gandhinagar 382 010. Near Life Building, Gujarat. INDIA Rajkot- 360001 Phone: 079 - 232 – 52630 Phone: 0281-2443664 Email ID: [email protected] Mail-id: [email protected]

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Useful links

National Level State Level

Bureau Of Indian Standards Industries Commissionerate

www.bis.org.in www.ic.gujarat.gov.in

Udhyog Aadhar Industrial Extension Bureau

www.udyogaadhaar.gov.in www.indextb.com

Development Commissioner(MSME)- Gujarat Industrial Development Ministry of Micro, Small & Medium Corporation

Enterprises www.gidc.gov.in www.dcmsme.gov.in Gujarat Infrastructure Development

Department of Industrial Policy & Board Promotion- Ministry of Commerce & www.gidb.org

Industry The Centre for Entrepreneurship www.dipp.nic.in Development

Ministry of Textiles www.ced.gujarat.gov.in

www.ministryoftextiles.gov.in Electronics & Quality Development

E Biz Portal Centre

www.ebiz.gov.in www.eqdc.in

National Small Industries Corporation Gujarat Urja Vikas Nigam Limited Ltd (NSIC) www.gseb.com

www.nsic.co.in Gujarat Pollution Control Board

Small Industries Development Bank of www.gpcb.gov.in

India (SIDBI) Gujarat Mineral Development www.sidbi.in Corporation

www.gmdcltd.com

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Useful links (Cont.)

State Level (Cont.) Tourism Corporation of Gujarat Limited

www.gujarattourism.com

Gujarat Maritime Board

www.gmbports.org

Gujarat State Financial Corporation

www.gsfc.gujarat.gov.in

Commissioner of Geology & Mining

www.geomining.gujarat.gov.in

Gujarat State Handloom & Handicrafts Development Corporation Ltd

www.gurjari.co.in

Commissioner, Cottage & Rural Industries

www.cottage.gujarat.gov.in

Gujarat Industrial Investment Corporation Limited

www.giic.gujarat.gov.in

Industries & Mines Department

www.imd-gujarat.gov.in

14 Prepared by:

MSME Facilitation Desk Gandhinagar 07923252630 [email protected] Ahmedabad 07925503568 [email protected] Surat 0261 2465928 [email protected] Vadodara 02652411400 [email protected] Rajkot 02812443664 [email protected]

For more details and other desk information visit – ic.gujarat.gov.in/msme-facilitation- desk.aspx