Gujarat government plans exclusive zone for Japanese companies

Gandhinagar: The Gujarat government is planning a dedicated industrial zone for Japanese companies coming to the state. It has already earmarked the area for the project right next to Maruti Suzuki India Limited car plant near Hansalpur in Mandal taluka of Ahmedabad district.

Gujarat Industrial Development Corporation (GIDC), the nodal agency for the planned industrial development in the state, has initiated the process of developing the dedicated zone to facilitate setting up of medium and large size units.

Sources in the government informed, "Apart from ancillary units of Maruti Suzuki, a number of medium and large Japanese companies are keen to invest in Gujarat. GIDC plans to acquire around 500 hectares of land for the proposed zone on the model of Japan Industrial Zone developed by Rajasthan government in Neemrana in Alwar district. We are planning it on a bigger scale. We expect at least 25 companies to invest Rs 100 crore to Rs 500 crore each."

However, officials said that land acquisition in the area would be a major issue, especially after the recent Mandal-Bechraji SIR row. The GIDC plans to acquire only 150 hectares initially. "Thereafter we will gradually acquire more land. GIDC is also developing a dedicated auto industry estate in the region," sources added. The state government has given 670 acres at around Rs 643 per square metre to Maruti in Hansalpur. The company has sought additional 330 acres close to the plant site. Maruti had signed a state support agreement with the government for the purchase of land near Hansalpur to set up an all new manufacturing facility in June 2012. The plant is expected to be commissioned by 2015-16.

The company is planning to invest around Rs 4,000 crore for the unit with 1 million car annual capacity. Total direct or indirect employment generated is expected to be 1.5 lakh. The state government has given 'mega and innovative project' status to the venture.