‘Gujarat administration has kept communication channels open with Tesla’

How do you plan to achieve a 13% growth for Gujarat’s economy in nominal terms for 2023-24, which is faster than the 10.5% growth projected for India?

Gujarat has consistently outperformed the national growth rate, rightfully earning the title of the ‘growth engine of India’. Despite comprising only 5% of the country’s population, Gujarat contributes over 8.3% to the national GDP (gross domestic product). In the previous year, the state accounted for 33% of India’s total merchandise exports. Strong global ties and a diversified GSDP (gross state domestic product) make our economy exceptionally resilient.

Our government has set a target to contribute 10% to India’s economy and achieve a $500 billion economy by 2026-27. We have full confidence in surpassing these goals, thanks to the solid foundations laid by Prime Minister Narendra Modi during his tenure as the state chief minister. We’ve effectively harnessed the benefits of national initiatives like ‘Make in India,’ ‘Startup India,’ and ‘Digital India.’ Our infrastructure projects, such as Dholera Special Investment Region (SIR), Diamond Research and Mercantile (DREAM) City, GIFT City and sector-specific industrial parks, combined with policies in clean energy, self-reliance and semi-conductors are designed to facilitate India becoming a developed country by 2047.

What are your plans to attract further private investments? What is the progress in setting up the semiconductor plant at Dholera?

Gujarat’s next growth phase hinges on transformative mega projects like the GIFT City, Dholera SIR, DREAM City, Mandal-Becharaji SIR, PM-MITRA Park, Bulk Drug Park, greenfield ports and LNG Terminal, and the forthcoming high-speed rail project connecting Ahmedabad and Mumbai. These initiatives have established Gujarat as a hub for sector-specific industrial infrastructure. Emerging opportunities in GIFT City include aircraft leasing and financing, a fintech hub and an international bullion exchange. Dholera is poised to evolve into a global manufacturing and trading hub as the largest node on the Delhi-Mumbai industrial corridor. Regarding setting up a semiconductor display fab manufacturing plant at Dholera, both Vedanta and Foxconn are exploring opportunities independently. Meanwhile, construction on the Micron assembly, testing, marking and packaging (ATMP) project is already underway. Mandal Becharaji Special Investment Region is on its way to becoming the world’s largest automobile hub. Surat’s Diamond Research and Mercantile City will further encourage diamond trading across the globe.

Is there a possibility of Tesla establishing a presence in Gujarat?

The central government has been engaging with Tesla to explore the possibility of establishing a manufacturing facility in India. The initiative quite aligns with our commitment to promoting a conducive environment for innovation and investment in our state. Gujarat will engage with Tesla at the most opportune moment to ensure that we play a substantial role in their plans. The primary discussions are being led by the central government; however, we, too, have kept communication channels open.

To green India’s economy, Gujarat, which has a strong industrial base, has to take ambitious steps. Are you prepared?

Climate change is a global concern, and Gujarat took the lead in addressing it by establishing a dedicated climate change department under the guidance of our Prime Minister during his tenure as the chief minister. We are also leading in India’s residential solar rooftops. Gujarat ranks number one among all the states in rooftop solar, with an installed capacity of 2.9GW (total rooftop consumers of over 440,000). The ‘solar village’ at Modhera has gained global recognition. Gujarat is committed to becoming the global green hydrogen capital by working closely with the Government of India. Additionally, Gujarat pioneered the canal-top solar project and plans to add 30GW to India’s renewable energy capacity through the world’s largest hybrid solar and wind park by 2025. We are recognized as a top performer in NITI Aayog’s State Energy and Climate Index 2022. Our renewable energy policy of 2023 aims to generate 50% of electricity from renewables by 2030, focusing on wind, solar, and hybrid technology projects.

How has Gujarat emerged as a preferred state for foreign investments?

Due to proactive policy-making, a favourable ease of doing business environment, an investor-friendly approach, robust industrial infrastructure, and improved quality of life, Gujarat now stands out as the top choice for Indian and global conglomerates looking to invest and establish their businesses. Companies hailing from the US, Japan, France, Germany, The Netherlands, The UK, Switzerland, Italy, Sweden, UAE, and Saudi Arabia have expressed keen interest in Gujarat, spanning various sectors such as renewable energy, chemicals, food processing, financial services, green hydrogen and futuristic technologies. In the fiscal year 2023-24, up to September, the government of Gujarat has inked memorandums of understanding with over 55 companies, anticipating the creation of opportunities in sectors including agro and agro-food processing, textile and apparel, engineering, automobile, healthcare and pharmaceuticals, chemicals and petrochemicals, power, oil and gas, renewable energy, packaging, IT, biotechnology, industrial parks and mini estates and logistics.

Which are the new investors planning to invest in Gujarat?

Gujarat has consistently embraced progress and adapted to changing times by developing policies tailored to contemporary needs. These policies encompass renewables, electric vehicles (EVs), semiconductors, and solar rooftops, successfully attracting diverse investments. Notably, our semiconductor chip policy has led to substantial investments by Micron, while Tata is establishing a lithium-ion manufacturing plant for EVs. With forward-thinking policies and the upcoming Vibrant Gujarat Global Summit 2024 with the theme’ gateway to the future,’ we are confident that the state will continue to draw investments, including those in green hydrogen and semiconductors, contributing significantly to the Prime Minister’s vision of Viksit Bharat by 2047.

Which are the new industries that the Gujarat government is focusing on to attract investments?

Gujarat has developed immense potential to attract industries from emerging and sunrise sectors like semiconductor and electronic system design and manufacture, green hydrogen, renewable energy ecosystem, aerospace and defence, artificial intelligence, internet of things, fintech, cybersecurity, and high-tech manufacturing and consumer goods. A comprehensive ecosystem is being created in thrust areas like green ammonia, fuel cell, battery storage, and electric vehicle manufacturing industries.

What are the future growth plans for the Dholera greenfield investment region and Diamond Research and Mercantile (DREAM) City?

DSIR stands as India’s premier industrial smart city. It holds immense promise in sectors such as defence, aviation, electronics, high-tech emerging technologies, pharmaceuticals, biotechnology and heavy engineering. DSIR will be a major beneficiary of the Delhi-Mumbai Industrial Corridor (DMIC) and Dedicated Freight Corridor (DFC), with 38% of the DFC traversing Gujarat (565 km). An international airport under development in Dholera SIR is set to become one of the largest greenfield international airports. Additionally, India’s largest infrastructure project includes the world’s largest solar plant, boasting a capacity of 5,000 megawatts (MW), which will be developed in a phased manner. To meet the growing demand for commercial and residential space and complement the swift development of the diamond trading business, DREAM City has been established in Surat. The Surat Diamond Bourse (SDB) anchors this project, which will be implemented in phases. The master plan includes designated land parcels for diverse uses, connected by broad interconnecting roads, featuring a range of projects such as affordable housing, commercial, metro, recreation and public-private partnership (PPP) model-based initiatives.

How is Gujarat positioning itself to become a green hydrogen hub?

Gujarat is actively collaborating with the Government of India to establish itself as the global green hydrogen capital. We have pioneered an incentive scheme — the Aatmanirbhar Gujarat Scheme for Assistance to Industries — aimed at promoting green hydrogen projects. Discussions are underway with major industry players to establish green hydrogen projects within the state. Gujarat’s strategic focus extends to developing the entire value chain for green hydrogen. Abundant renewable energy resources, vital for green hydrogen generation, are readily available in the state. With India’s longest sea coast, Gujarat boasts a substantial water supply that can be efficiently desalinated for green hydrogen production. Furthermore, the state’s approximately 48 ports position it as an ideal gateway for exporting green hydrogen/ammonia to the global market. Our initiatives harmonize seamlessly with the Government of India’s efforts, such as the National Green Hydrogen Mission and production-linked incentive (PLI) schemes for electrolyzers and ACC batteries. To promote the renewable energy and green hydrogen sector, Gujarat has allocated 199,000 hectares of government land to five companies for the development of renewable energy power plants for green hydrogen production. This synergy promises to propel Gujarat into a prominent green hydrogen hub.

For Prime Minister Narendra Modi, developing the blue economy is a key priority. What are the things the state government is doing in this direction?

Gujarat is committed to becoming a global maritime leader in line with the Prime Minister’s blue economy vision. We are proud to announce that the Gujarat Maritime Board was named ‘Maritime Board of the Year’ at the Maritime Excellence Awards 2023. Gujarat aims to boost the capacity of non-major ports, promote industrialization around ports, enhance connectivity, and seize opportunities in green hydrogen and offshore wind energy. We envision our non-major ports reaching international standards, doubling their cargo handling capacity, and supporting offshore wind power projects. Additionally, we are expanding into marine tourism, ropax transportation, coastal shipping, fisheries ports, and ship recycling, all in collaboration with industry leaders, to solidify our maritime sector’s holistic growth.

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Updated: 11 Oct 2023, 11:58 PM IST