Final Report Dalal Mott MacDonald Study on Development Potential of Kutch Gujarat Infrastructure Development Board Gujarat Infrastructure Development Board 8th Floor, Block 18, Udyog Bhavan Gandhinagar, Gujarat, India Final Report Volume II Infrastructure Development and Growth Management Strategies Study on Potential Development of Kutch, Gujarat July 2005 Dalal Mott MacDonald 501- Sakar II, Nr. Ellis Bridge Ahmedabad 380 006 India Tel: +91-792657555 214002AA01/1/A/12 July 2005 2 Final Report Dalal Mott MacDonald Study on Development Potential of Kutch Gujarat Infrastructure Development Board Table of Contents Volume I: Study on the State of Development and Identification of Potentials Executive Summary Part 1: State of Development of Kutch Part 2: Identification of Sectoral Potentials and Development Actions Volume II: Infrastructure Development Strategies, Adaptability of International Models, Framework for Land Use and Transportation Planning and Institutional Strengthening Executive Summary Part 1: Infrastructure Development Status and Strategies Part 2: International Models and Adaptability Part 3: Growth Management A. Framework for Land Use and Transportation Planning B. Institutional Strengthening Appendix A: Schedule of Actions Volume II: Infrastructure Development Strategies, Adaptability of International Models, Framework for Land Use and Transportation Planning and Institutional Strengthening Executive Summary Part 1: Infrastructure Development Status and Strategies page 1. Infrastructure, the Key Factor for Growth 1 1.1 Vision for Infrastructure Development 1 1.2 Objectives in Formulating Infrastructure Development Strategies 2 1.3 Infrastructure Classification and Availability 2 2. Ports and Navigation 3 2.1 Role of Ports and Navigation in a Globalised Economy 3 2.2 Spatial Distribution of Ports and Locational Advantages 5 2.3 Accessibility to Hinterland 6 214002AA01 1 Final Report Dalal Mott MacDonald Study on Development Potential of Kutch Gujarat Infrastructure Development Board 2.4 Ports and their Performances 7 2.4.1 Kandla, the Second Largest Port in India 8 2.4.1.1 Infrastructure Availability 8 2.4.1.2 Growth of Traffic and Traffic Handling 8 2.4.1.3 Income and Expenditure Patterns 9 2.4.1.4 Future Plans 9 2.4. 2 GAPL-Mundra, the Maritime Masterpiece 10 2.4. 2.1 Infrastructure Availability 10 2.4. 2.2 Growth of Traffic and Traffic Handling 11 2.4.2.3 Future Plans 11 2.4. 3 Mundra International Container Terminal (MICT) 11 2.4.3.1 Infrastructure at Mundra International Container Terminal 12 2.4.3.2 Traffic at MICT 12 2.4.3.3 Income and Expenditure Patterns 12 2.4.3.4 Future Plans 13 2.4. 4 Minor Ports 13 2.5 Development Potentials of the Ports in Kutch 13 2.5.1 Increasing Trends of India’s total Demand and its Impact on 13 Ports in Kutch 2.5.2 Congestion in Maharashtra Ports and Port Linkages 14 2.6 Port-wise Assessment of Demand – Supply Gap 14 2.6.1 Demand Supply Gap: Kandla Port 14 2.6.2 Demand Supply Gap at Mundra Port of Gujarat Adani 15 Port Limited (GAPL) 2.6.3 Mundra International Container Terminal (MICT) 15 2.7 Major Problems Associated to Ports in Kutch 16 214002AA01 2 Final Report Dalal Mott MacDonald Study on Development Potential of Kutch Gujarat Infrastructure Development Board 2.8 Actions, Required for Port Development 16 2.8.1 Specialisation and Dedicated Berths 16 2.8.2 Modernisation of Kandla and Development of Kandla-Tuna-Kandla 16 Special Economic Zone Complex 2.8.3 Feasibility Study for a Third Port by 2015 16 2.8.4 Feasibility Study for Ship Breaking, Repairing and Building 17 2.8.5 Fea. Study for Mundra-Bhuj and Gandhidham -Bhuj Corridor Roads 17 2.8.6 Summary of the actions 17 3. Roads and Highways 19 3.1 Network and Density 19 3.2 Major Traffic Corridors 19 3.3 Investments and Initiatives 19 3.4 Assessment of Corridor-wise Demand-Supply Gaps 19 3.4.1 Anjar-Mundra Corridor 21 3.4.2 National Highways 21 3.4.3 Anjar-Mandvi Corridor 22 3.4.4 Bhuj-Bhachau Corridor 22 3.4.5 Other Corridors from Bhuj 23 3.4.6 Bhuj-Khavda-Kunvarbet Corridor 23 3.4.7 Bhuj-Jakhau Corridor 23 3.4.8 Bhuj-Nakhatrana-Lakhpat Corridor 24 3.4.9 Mandvi-Gadhshisa-Nakhatrana Corridor 24 3.4.10 Gadhada-Rapar -Chitrod-Bhachau Corridor 24 3.5 Problems Related to Road Development 25 3.6 Road Development Strategies and Actions 25 3.6.1 Strengthening Trade and Agglomeration Support and 25 Industry Linkage Roads 214002AA01 3 Final Report Dalal Mott MacDonald Study on Development Potential of Kutch Gujarat Infrastructure Development Board 3.6.2 Strengthening Port Connectivity 25 3.6.3 Salt and Mining Area Roads 25 3.6.4 Improving General Regional Rural Roads 26 3.6.5 Speed and Quality; Major Criteria 26 3.6.6 Feasibility for Privatisation 26 3.6.7 Integration with Land Development or Corridor Development 26 3.6.8 Actions, Required 26 4. Development of Railways 28 4.1 Network and Density 28 4.2 Traffic Flow Pattern 28 4.3 Investments and Initiatives 28 4.4 Problems and Potentials 29 4.5 Possible Measures 29 5. Airports and Linkages 30 5.1 Spatial Distribution 30 5.2 Performance 30 5.3 Investments and Initiatives 30 5.4 Air Traffic and Airports 31 5.4.1 Review of the Aviation Master Plan Estimates 31 5.5 Airport Infrastructure and Air-linkages Development Strategies 32 5.5.1 Development of Kandla Air-strip and Private Sector Participation 32 5.5.2 Luring Cheaper Airlines 32 5.5.3 International Airport 32 6. Power Infrastructure 33 6.1 Overview 33 6.2 Installed Capacity, Generation and Spatial Distribution 33 214002AA01 4 Final Report Dalal Mott MacDonald Study on Development Potential of Kutch Gujarat Infrastructure Development Board 6.3 Electricity Consumption 34 6.4 Investments and Initiatives 34 6.5 Assessment of Demand-Supply Gap 35 6.6 Wind Energy Potential in Kutch 35 6.6.1 Wind Energy: Global Scenario 36 6.6.2 Indian Scenario 36 6.6.3 Gujarat and Kutch Scenario 38 6.6.4 Potential in Kutch 41 6.6.5 Actions and Initiatives Required 42 7. Water Infrastructure 43 7.1 Domestic Water Supply: Coverage and Sources 43 7.2 Water Demand Assessment 44 7.2.1 Assessment of Domestic Water Demand and Supply Gap 44 7.2.2 Assessment of Industrial Water Demand and Supply Gap 44 7.2.3 Estimation of Future Industrial Water Demand 45 7.3 Strategic Options for Fulfilling Industrial Water Demand Supply Gap 45 7.4 Issues and Action 46 8. Water Infras tructure: Case of Desalination 47 8.1 Desalination: Global Scenario 47 8.2 Desalination Processes 50 8.2.1 Thermal Processes 50 8.2.2 Membrane Desalination 52 8.3 Factors Affecting Desalination Water Cost 53 8.4 Cost Economics of Desalination Technologies 53 8.5 Desalination Plant in Kutch: Sanghi Cement Experience - Case Study 54 9 Communication Infrastructure 56 214002AA01 5 Final Report Dalal Mott MacDonald Study on Development Potential of Kutch Gujarat Infrastructure Development Board 9.1 Network and Density 56 9.2 Investors, Players and Initiatives 56 9.3 Problems 57 9.4 Possibilities 57 10 Social Infrastructure Health 58 10.1 Assessment of Health Infrastructure 59 10.2 Actions Required for Health Infrastructure 60 11 Social Infrastructure: Education 61 11.1 Existing Status of Primary and Secondary Education 61 11.2 Existing Status: Higher and Technical Education 61 11.3 Changes after the Earthquake 62 11.4 Assessment of Educational Infrastructure in Kutch 62 11.5 Actions, Required 63 12 Sports and Entertainment 65 12.1 Assessment of Sports and Entertainment Infrastructure 65 12.2 Actions Required 65 13 Proposed Infrastructure Development Actions, Timescale and Implementation Procedure 66 Volume II: Part 2: International Models and Adaptability 1. International Models and their Adaptability 1 1.1 Defining a Trade / Business Hub 1 1.2 Trade Hubs in Asia and their State of Development 1 1.3 Analysis of the Key Driving Forces 8 1.4 Assessment of the Key Driving Forces through Selected Cases 10 1.5 Case Study: Taiwan 11 1.5.1 Growth of Taiwan 11 214002AA01 6 Final Report Dalal Mott MacDonald Study on Development Potential of Kutch Gujarat Infrastructure Development Board 1.5.2 Taiwanese Economic Boom 11 1.5.3 Foreign Investments 12 1.5.4 Foreign Trade and Exports 12 1.5.5 Small, but Dynamic Agriculture Base of Taiwan 13 1.5.6 Contemporary Issues 13 1.5.7 Science Based Ind. Parks: the Basic Driving Force of Taiwan’s Economy 13 1.5.7.1 Hsinchu Science-based Industrial Park (HSIP) 14 1.5.8 New Initiatives 14 1.5.9 Supportive Role Played by the Freeways and other Infrastructures 15 1.6 Case Study: Singapore 16 1.6.1 Rise of Singapore; the Island 16 1.6.2 A Unique Mix of Phy./Locational Adv. and Tactical Policy Decisions 17 1.6.3 Economic Growth and Contemporary Focus 17 1. 6.3.1 Economic Dynamism 17 1.6.3.2 Multinational Corporations 17 1.6.3.3 Manufacturing 18 1.6.4 Investment Scenario 18 1.6.4.1 Inwardly Flowing Investments 18 1.6.4.2 Strategy for Investing Outside 19 1.6.5 Trade in Singapore 19 1.6.5.1 Advantages of Strategic Location 19 1.6.5.2 Trade, Achievements 19 1.6.5.3 Re-exports from Singapore 19 1.6.6 Labour Force and Employment 20 1.6.7 Industrial Parks in Singapore 20 1.6.7.1 Jurong Island Industrial Park 20 214002AA01 7 Final Report Dalal Mott MacDonald Study on Development Potential of Kutch Gujarat Infrastructure Development Board 1.6.7.2 Institutional Support 21 1.6.7.3 Infrastructure in Jurong 21 1.6.7.4 Other Business Parks 21 1.6.8 Quality of Life 21 1.7 Case Study: Pearl Riv er Delta 22 1.7.1 The Pearl River Delta, China 22 1.7.2 Booming Economy 23 1.7.3 Growth of Manufacturing Sector 23 1.7.4 Role of Hong Kong 24 1.7.5 Special Economic Zones: Case of Shenzhen 24 1.7.5.1