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.
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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.
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.