18 `7,03,798 crore and Tamil Nadu - `3,93,477 crore. In fact, even FDIs may now go <strong>to</strong> Gujarat, with global inves<strong>to</strong>rs choosing Gujarat over other states thanks <strong>to</strong> the proactive approach adopted by their govern<strong>me</strong>nt. Regular invest<strong>me</strong>nt conclaves conducted by the Gujarat govern<strong>me</strong>nt is attracting both do<strong>me</strong>stic and foreign inves<strong>to</strong>rs. According <strong>to</strong> Gujarat govern<strong>me</strong>nt data, four Vibrant Gujarat Inves<strong>to</strong>r Summits have attracted invest<strong>me</strong>nts of over $400 billion. Modi has been <strong>me</strong>eting with international inves<strong>to</strong>rs <strong>to</strong> convince them <strong>to</strong> invest in the state. For instance, in March, this year, Modi, <strong>me</strong>t <strong>to</strong>p CEOs from European companies in New Delhi. The <strong>me</strong>eting was part of an interactive session held between the Gujarat govern<strong>me</strong>nt and the European Business Group India. The session was attended by leading companies including BAe Systems, Veolia Water India Pvt Ltd, Vodafone, BP, Dassault, EDF, IKEA, Rio Tin<strong>to</strong> and Halcrow India, Shell Hazira and Als<strong>to</strong>m. The whole point of the <strong>me</strong>eting was <strong>to</strong> get European companies <strong>to</strong> invest in the state. Modi has partially succeeded in bringing FDI <strong>to</strong> the state since it already has invest<strong>me</strong>nts from few European companies such as Heubach, BASF, Bayer, Sie<strong>me</strong>ns, Linde AG, Lanxess, Duravit, Pharmacia, Pers<strong>to</strong>rp, Cheminova, and Sanofi Aventis. The US is also not far behind. Recently, on 22nd September, billionaire inves<strong>to</strong>r Warren Buffett said US-based specialty chemicals maker Lubrizol Corporation, a wholly-owned subsidiary of Buffett’s Beyond Market 10th Oct ’11 invest<strong>me</strong>nt company, Berkshire Hathaway Inc, will set up a chlorinated polyvinyl chloride industrial unit, in partnership with Ah<strong>me</strong>dabad-based Astral Poly Technik, at the Gujarat Industrial Develop<strong>me</strong>nt Corporation (GIDC) complex in Dahej. Lubrizol will initially invest about $245 million (`1,177 crore) in Gujarat. “Considering the inves<strong>to</strong>r-friendly environ<strong>me</strong>nt, transparent policies and best infrastructure facilities in Gujarat, we have chosen the state for setting up of the first unit,” Tom Frubus, chief of Lubrizol Corporation (USA), said while announcing the invest<strong>me</strong>nt. Dahej is already a major chemical hub, with India’s largest petroleum, chemicals and petrochemicals invest<strong>me</strong>nt region being developed in this area. Gujarat has particularly been successful in attracting invest<strong>me</strong>nts from au<strong>to</strong>mobile companies. On 1st September, French carmaker, PSA Peugeot Citroen SA, signed a Memorandum Of Understanding, with the Gujarat govern<strong>me</strong>nt <strong>to</strong> set up an integrated manufacturing facility at an invest<strong>me</strong>nt of `4,000 crore at Sanand, Gujarat. The firm had been scouting for land for its India entry for the past few months in Tamil Nadu, Andhra Pradesh and Gujarat. “The availability of greenfield land and ready infrastructure are a couple of reasons for us <strong>to</strong> choose Sanand for the plant. Moreover, it is the enterprising nature of Gujarat that attracted us <strong>to</strong> the state,” Philippe Varin, chairman of the managing board, PSA Peugeot Citroen, said. Earlier, in July Ford India, the local unit of the Michigan-based Ford Mo<strong>to</strong>r Co had said it will set up its second manufacturing facility in India at Sanand for a <strong>to</strong>tal invest<strong>me</strong>nt of `4,000 crore. In fact, Sanand, a small <strong>to</strong>wn 40 km away from Ah<strong>me</strong>dabad, is now counted among India’s prominent au<strong>to</strong> hubs such as Pune in Maharashtra and Sriperumbudur in Tamil Nadu. The Gujarat govern<strong>me</strong>nt has been focusing on Sanand <strong>to</strong> develop the region as an au<strong>to</strong>-engineering hub because of its proximity <strong>to</strong> Ah<strong>me</strong>dabad. According <strong>to</strong> <strong>me</strong>dia reports, Gujarat Industrial Develop<strong>me</strong>nt Corporation (GIDC) has acquired 5,000 acres of land from far<strong>me</strong>rs in villages around Sanand <strong>to</strong> give <strong>to</strong> au<strong>to</strong>mobile companies interested in setting up a plant there. The other advantage is that Sanand is part of a special invest<strong>me</strong>nt region, which allows companies that invest there <strong>to</strong> benefit from tax incentives and a fast-track approval process. Gujarat govern<strong>me</strong>nt statistics reveal that by 2014, Sanand is likely <strong>to</strong> have an installed capacity of 6,55,000 cars annually after the two plants beco<strong>me</strong> functional (Peugeot and Ford). It is expected that in all Gujarat would have a manufacturing capacity of 7,65,000 cars per annum by 2014, going by the estimates by au<strong>to</strong>makers. This compares favourably <strong>to</strong> Tamil Nadu’s annual installed capacity of 1.28 million cars and Maharashtra’s capacity of 6,10,000 units. Very recently, Maruti Suzuki, India’s largest carmaker said it will invest $1.3 billion <strong>to</strong> set up a one million capacity per annum plant, in Gujarat. The carmaker has not yet finalized its plans but if it does, then Gujarat might just pip Tamil Nadu as the au<strong>to</strong> hub of IndiA. It’s simplified...
Contact: Sushmita Desai: +91 77380 68262 Registered Oce: 38-B, Khatau Building, 2nd Floor, Alkesh Dinesh Mody Marg, Fort, Mumbai - 400001. Tel: 3926 8600 / 01; Fax: 3926 8610, Corporate Oce: B-2, 301/302, 3rd Floor, Marathon Innova, O Ganpatrao Kadam Marg, Lower Parel (W), Mumbai - 400 013. Tel.: 39268000 / 8001 Fax: 39268010
Change language