Investment proposals in Gujarat, India“s second most industrialized province, more than doubled in 1999 over the previous year, suggesting that an industrial recovery is on in the state, a senior off…
Investment proposals in Gujarat, India“s second most industrialized province, more than doubled in 1999 over the previous year, suggesting that an industrial recovery is on in the state, a senior official said. “This is a clear sign of industrial recovery, investment proposals have more than doubled in 1999 to 150 billion rupees (US$ 3.44 billion),” said K.N. Shelat, the state“s industries commissioner. Investment proposals in 1998 were worth 60 billion rupees, he said. Shelat said around 40% of the proposals are for infrastructure projects like ports, roads, industrial estates and power. Investments in infrastructure projects in Gujarat are protected by a build-operate-own-and-transfer law. The Anglo-Dutch group Shell has signed a memorandum of understanding with the state to set up a liquefied natural gas import terminal at Hazira in southern Gujarat at a cost of 30 billion rupees, Shelat said. Gujarat has attracted 1.6 trillion rupees of private investment since 1991 when India started its economic reforms process. The state“s economy has maintained a growth rate of 12% in the last five years, making it attractive for investors. Shelat said several manufacturers in the state are increasing capacities to meet growing demand. Urea and soda ash maker Tata Chemicals Ltd. plans to increase its capacity by putting up a two-billion-rupee plant close to its current facility near Jamnagar. Gujarat Sidhee Cements Ltd. has sought permission for a fresh investment of four billion rupees at its manufacturing plant in the state. Packaging material maker, Shree Rama Multi-tech has plans for a greenfield plant costing 2.5 billion rupees. Videocon International , which makes consumer electronics products, is planning a project worth around three billion rupees at Baruch in southern Gujarat. Textile manufacturers in the state are spending over six billion rupees to upgrade their technology. “We have a list of 32 small and medium-scale industrial units which have taken loans for modernization of their units,” Shelat said. He said there were 2,000 medium-and large-scale units in the state and a further 2,500 were in the process of being set up. “In the case of small-scale industry, we add 15,000 units every year and at present there are 230,000 factories,” he said.