Gujarat: Vibrant & Growing

Pipavav, Dholera, Kandla and Mundra Ports will lead the Transformation in the State
Investment names to be considered GMDC, GIPCL, GSPL, Petronet LNG, Ganesh Housing, Gujarat Gas, PSL, Mundhra Ports & Ratnamani Metals

Gujarat with its 41 Ports, handle 80% of India's port traffic and 20% of its cargo. It is estimated that by 2015, Gujarat's ports will handle 39% of India's cargo. The state is
aggressively promoting four private ports - Mundra, Pipapav, Kandla and Dholera.

With Gujarat riding a wave of port-led development and many new ports coming up in a semi-circle around Ahmedabad, the city is all set to emerge as a major destination for trading. The private ports and the existing ones being modernised through private sector involvement will transform Ahmedabad’s image from a landlocked city to a business hub.

Besides, the upcoming Dholera port could well give Ahmedabad the status of a port city. The port will handle 4 million tonnes of general cargo, containers and chemicals in the first phase of the project.

In addition to this, a 25,000-acre special economic zone will also be set-up. With a world-class airport being planned between Ahmedabad and Dholera
the fortunes of this city are bound to change.

The Government of India plans to develop a
Dedicated Freight Corridor (DFC) linking Delhi, Mumbai, Kolkata and Chennai. The proposed DFC passes through six states in India, of which Gujarat accounts for 38% (564 kilometres) of the total DFC length. The influence area of 150 kilometres on either side of DFC is being developed as the ‘Delhi Mumbai Industrial Corridor’ (DMIC).

Almost 62% of the total area of Gujarat will be benefited by DMIC development. The Ahmedabad- Dholera industrial area lies within 100 kilometres of the DFC of central Gujarat and is linked by NH-8. The proximity of this project to Ahmedabad will lead to further development and activity in the real estate and construction sector.

Ahmedabad is the seventh largest city of India and acquired the ‘Mega City’ tag in 2005. The mushrooming SEZ's in Gujarat and Ahmedabad, Gujarat riding a wave of port-led development and the Delhi-Mumbai Industrial Corridor are likely to change the skyline of the city. With investments worth USD 15 billion in the next five years, the city is expected to generate large-scale employment, ensuring steady demand in real-estate

Ahmedabad houses a population of approximately 5.8 million people and is growing at
a rate of 2.5%. The city which was once known for its textiles has transformed into a major IT, pharma, chemicals, retail and real estate hub. The development and implementation of all the major mega projects is likely to create more jobs, boost economy, attract capital and most importantly, promote migration to the city. This in turn will generate more demand
for all verticals of real estate such as hospitality, residential and commercial complex, SEZ etc.

Consider this. Gujarat has emerged as the leading SEZ state. Around 15,000 hectares of the state land is to be utilized for the development of over 50 duty free enclaves. Development of SEZs was top on the priority list of the 2007 Vibrant Gujarat summit. The summit saw a huge Rs. 1.71 lacs crore worth of investment for SEZs out of a total
investments of Rs. 4.65 lacs crore.

11 SEZ are set to come up in Ahmedabad district covering varying sectors such as apparel
and pharmaceuticals. Ahmedabad is also set to rival Tokyo, Paris and London with the upcoming Gujarat International Finance Tec-City (GIFT) at the cost of Rs. 33,000 crore.

The Centre has recently cleared 250 acres as a SEZ which will house an international techno park, international market zone, stock exchanges and services units, international education zone, integrated townships, entertainment zone, hotels and convention centre
and shopping malls. The project is targeted to generate nearly 1 million new jobs.

The Sabarmati Riverfront Development Corporation Limited
(SRFDCL) envisages opening up almost 11.5 kilometres of virgin land along the Sabarmati riverbank for infrastructural development. Some of the notable features of the project are: construction of embankments on both sides of the river; reclamation of about 162 hectares of land, retention of water in the river for throughout the year; development of wide public promenades along the entire length of the river; Business towers and Convention centres. The project, a realtor’s delight will be India’s first riverfront development project that will soon become a benchmark for other states to follow.

As the cost for
IT/ITES operations in Ahmedabad is lower by 40-50% as compared to Tier I cities of the country, substantial potential is envisaged for future IT/ITES investment. Ahmedabad is also developing an excellent urban infrastructure for the services
economy which is largely an urban phenomenon. Info city, an IT park spread over 150 acres in Gandhinagar, has tenants like Microsoft, ACI and TCS.

Since IT/ITES is a people intensive industry, the development of this industry will lead to migration of people from various parts of the country. This will lead to an increased demand for housing, hotels, service apartments etc.