SEZ and SIR in Gujarat: Land for Industrialists

Shashikant Kumar, Green Eminent

In contrast to the ‘land for tillers’ slogan in Gujarat during 1970s, the present 21 st century is
poised to be marked in Gujarat as ‘Land for Industrialists’. The Government of Gujarat assisted
creation and promotion of Special Economic Zones (SEZ) and Special Investment Regions (SIR)
is an additional vehicle for facilitating distribution of land to industries. The promise of attracting
Foreign Direct Investment, creating employment and exports of the goods in order to generate
income to the state, by May 2010 about 60 SEZ (10 ha to 1000 ha) and 13 Special Investment
Regions (minimum 100 Sq.km) has been under various stages of implementation in state (See
Map).

The increased utilization of land for the industrial purpose has never been same in last 40 years
of history of the state which ranks third in industrial production in country. The unemployment
level between 2-5 percent of the total workforce available (2010 estimate) monthly to daily
variation. The government of Gujarat estimates an investment of above 14-20 lakh crores in the
industrial sector in coming 10 years (2020). The plan period target growth targeted to grow from
10.5 percent in tenth plan to 11.5 percent in eleventh plan period.

Towards 21st Century Industrial Gujarat: A New Approach

Though Gujarat had been front runner in the industrial development in the country, its policy
makers have never been satisfied with its share in State Domestic Product (GSDP). According to
NSS 64th round report (2007-08) the table on Distribution of persons (per 1000) by broad usual
activity (principal + subsidiary) status for each State/ U.T states Unemployment at 5 per 1000
persons in Gujarat against the national average of 9 per 1000 persons. This is one of the least
unemployment ratios among the states of India.1

1
Reference: NSSO, (2009), NSS Report No. 531: Employment and Unemployment Situation in India: July, 2007-
June, 2008
The state has shifted its industrial policy from cluster and industrial estates (GIDC) based
industries to SEZ during 2002-2004 and now shifted towards Industrial Regions 2 and Special
Investment Regions3 expanding the industrial influence areas 200-400 Sq.kms each. This shift is
supporting the states vision to become largest business hub in Asia and Global investment
destination (Industrial Policy -2009). The state Vibrant Gujarat summits from 2004 to 2011 (5
summits) have successfully attracted industries to commit investments in various industrial
sectors.

The special Economic Zones in the state is result of erstwhile industrial policy shift post 2002
(SEZ related policy) and later SEZ Act (2004) GoI. These acts and provisions allowed to attract
the investment by facilitating the industries to invest in the development of industrial township
encompassing statutory powers. This over rules the powers of local bodies and government to
interfere in day to day working inside the special economic zones.

The concept of special investment regions are fuelled by on going Dedicated Freight Corridors
(DFC) which encompasses 150 km on either of side as industrial corridors, namely the Delhi-
Mumbai Industrial Corridor (DMIC). The state government is providing port connectivity and
necessary infrastructure to boost the demand of industrial investment in the state.

SEZ in Gujarat

Gujarat like other states in the country is now enabling SEZ to be created on demand not based
on central, state and regional (district) planning requirements but on the demands of the private
capital. About 60 SEZ under various stages of implementation in state is formulated by Gujarat
SEZ Act 2004 and subsequent amendments in 2007. The land for these SEZs are either acquired
or purchased by public and private enterprises without any resettlement and rehabilitation
package/policy. The Gujarat Industrial Development Corporation (GIDC) is utilized to acquire
the land from the farmers and facilitate the setting of SEZ for the private capital.

2
Industrial Regions- Industrial Nodes identified for the large scale industrial development by state or national
organizations.
3
Special Investment Regions – Formulated under the Special Investment Region Act, 2009
Though state has also claimed less amount of agricultural lands for the SEZ it has successfully
diverted the common or gauchar land (often referred as waste land) from listed properties in land
banks to those industries promising high investment in the SEZs. At present Gujarat has been
able to attract investment to the tune of 2.63 Lakh crores promising employment of 20 lakh
persons and acquired nearly 32,000 ha of land.4

It is also important to note that state is going to attract huge workforce in Gujarat given its 1.6
crores total workforce available and 50 percent engaged in gainful employment in the primary
sector (cultivators and agricultural labourers) and 20 percent as marginal workers in rural
Gujarat. The human resource demand for the industries can only be met by large influx of
migrant population to existing urban centres as well as proposed SEZ areas. In absence of any
impact assessment of the operational SEZs it is difficult to assume the socio-economic impact of
SEZ.

Recent SEZ data available5 from the documents up to December2010, it can be tabulated that
Gujarat has 3 functional, 13 notified & operational, 29 notified, 45 formal approval and 13 In
principle approval. The state would have 103 special economic zones in coming future under
various sectors each acquiring land ranging from 10 hectare to 6000 hectares in various districts.

Delhi Mumbai Industrial Corridors (DMIC)

DMIC is influence zone along the proposed Western Dedicated Frieght Corridors (DFC) from
Delhi to Mumbai by joint venture partnership Government of India and Japanese trade
organisation (JETRO). The 38 percent DMIC falls within the Gujarat state which is targeted for
the new industrial development in the state (See Map).

4
Refer MoCI, Data Released on Web, New Delhi as on 31/05/2010
5
Refer: www.sezindia.nic.in/asez-sez-granted-under2005.asp for PDF download and latest information
Western Dedicated Freight Corridor (DFC)

Western Dedicated Freight Corridors (DFC) would connect Delhi to Mumbai (1483 Kms)
covering four states in Western India. The DFC covers 588 km approximately 40 percent of its
total length. The DFC is expect to impact about 60 percent of the total area of Gujarat affecting
18 out of 26 district in the state. About 74 percent of the population (37.3 million) would be
affected by the massive industrialization along the 150 km either side of Western DFC as its
influence zone .This zone comprises of 15.7 million working population of the state. The million
plus cities along the corridors are Ahmedabad, Vadodara and Surat and 0.5 to 1.0 million
population cities in the influence zone is Bhavnagar. The state has proposed to develop industrial
regions, Special Investment Region and port connectivity to Western DFC.

Special Investment Region (SIR) in Gujarat

The State Government promulgated a legal framework – The Gujarat Special Investment Region
Act, 2009. The State Government has plans to create large size investment Regions and
Industrial Areas in the State of Gujarat; and to specially enable their development as global hubs
if economic activity supported by infrastructure, civic amenities, centres of excellence and pro-
active policy framework; and to set up an organizational structure with that purpose.

The SIR Act has provision for the development of such economic hub(s) with global standards.
An Investment Region will be developed in an area of more than 100 sq. kms (10000 ha) and an
Industrial area will be developed in an area of more than 50 sq. kms (5000 ha). The Ordinance
provides for establishment of a four tier administrative mechanism for establishment, operation,
regulation and management of the SIRs. The structure will comprise of an Apex Authority, a
Regional Development Authority (RDA) for each region, a Project Development Agency and
project specific SPVs. Government has already approved formation of such a project
development company in the name of “Gujarat Industrial Corridor Company” (GICC).

The State has identified potential locations for development of Industrial Regions or Special
Investment Regions (SIR), among work on SIR like Dholera, Pipav, PCPIR (Dahej) etc have
already commenced by the state government. The Industrial Extension Bureau (INDEXb)
document6 about the SIR lists 13 prospective SIRs and its land use plan to attract industrial
6
INDEXb (2010), Special Investment Regions: Sector Profile, Vibrant Gujarat 2011, GoG.
investment covering total area of 4600 Sq. km (4,60,000 hectares) in state. These sites are
estimated to acquire 3731 Sq.km of land under for SIR governed by the Regional Development
Authority (RDA) as per the provision of the SIR Act, 2009. This includes an island SIR in
Bharuch district, Aliyabet covering 163 Sq.km area primarily for aquaculture, film industry and
recreation support to nearby PCPIR Dahej Special Investment Region. The combined estimates
of the employment opportunity through SIR are estimated to be above 31.0 Lakh persons in the
state. Following are some of the examples of the Investment regions verses employment
promises;

Table 1: Area and Employment estimates in Some SIR

Special Investment Region Area Proposed
(sq.km) Employment
Dholera, Ahmedabad 879.00 3,42,000
PCPIR, Dahej 453.00 1,20,000
Anjar, Kachchh 630.00 6,29,444
Changodar, Ahmedabad 319.00 4,62,287
Okha, Jamnagar 196.00 Not Known
Hazira, Surat 195.00 1,10,903
Santalpur 186.00 3,00,000
Navlakhi 182.00 6,85,000
Source: Special Investment Regions: Sector Profile, Indexb (2010)
ISSUES AND CONSEQUENCES

(a) Growth of GIDC and land utilized

Since 1960, GIDC has played important role in setting up industrial infrastructure for the
prospective industries in the state. As per the latest data (2010), GIDC manages 248 sanctioned
estates, out of which 182 are currently functional. The above table gives details of the land
acquired, developed and allotted in various districts / estates of Gujarat. Although the largest
number of estates exists in the Saurashtra and Kachchh region, the area under GIDC estates is
largest in Central Gujarat. This includes the Anand, Kheda, Vadodara, Dahod, Panchmahals and
Bharuch districts. As per the data available with Gujarat Infrastructure Development Board
(GIDB, 2010: Website), the chemical estates in Gujarat are located in Vapi (1100 ha), Panoli
(900 ha), Ankleshwar (1600 ha), Dahej (4400 ha), Jhagadia (1700 ha), Vilayat (1000 ha), Sachin
(778 ha), Pandesara (219 ha), Naroda (367 ha), Vatwa (527 ha) and Petro-Chemical Complex,
Vadodara (745ha).
Table 2: Region-wise Land Utilization by GIDC Estates
Estates Ahmedabad & Central South Saurashtra & Total
North Gujarat Gujarat Gujarat Kachchh
Total Sanctioned 56 57 32 103 248
Area (ha) 6113 13002 8466 5859 3344
1
Developed 42 50 24 66 182
Area (ha) 2677 12749 5005 2247 2267
9
Under 2 1 2 9 14
Development
Area (ha) 101 252 10 1888 2254
Planning / LAQ 12 6 6 28 52
Stage
Area (ha) 3334 3449 13723
2050
7
th
Source: http://www.gidb.org/gidb/cms.aspx?content_id=120 (Accessed on 28 Nov 2010)

The negative fallout of these chemical estates is well documented by various studies conducted
by the national and international agencies. Vapi, Ankleshwar and PCC (Vadodara) has been
accorded extremely polluted zones, by agencies such as CPCB7. The impact on the agriculture

7
CPCB, (2009), Comprehensive Assessment of Industrial Cluster, Central Pollution Control Board, New Delhi (Pdf
Document)
and environment had been immense owing to poor functioning of the Common Effluent
Treatment Plants (CETP) managed by the industries. The aggressive industrial investment in the
state may further jeopardize the ecological concerns of the state as expressed in the State
Environmental Report 2005 summery reports prepared by the Gujarat Ecology Commission8.

(b) Industrial Land Utilization:

Gujarat had utilized nearly 2.6 Lakh hectares of land for the industrial purpose in the state during
1960-2004 for nearly 20389 units employing 8.76 lakh workers. Whereas between the year
2004-2010, the industrial united increased to 23308 units employing 10.93 lakh workers. It is
important to note that within a short span six years (2004-2010) industrial areas are expected to
utilize 4.5 lakh hectares. The land may be locked for another 10 years for the same purpose till
the proposed GIDC estates, SIR and SEZ and subsequent investment materialises.

Table 3: Gujarat: Industrial Development and Land Used

Description 1960 - 2004 2004-2010*
Industrial Units (Factories) 20389 2919@
Workers (Factories) 876483 216557@
Investment (Rs.) 11443.155 Billion 614 Billion+
Land Used/Acquired (Total) 1.6 M Ha 0.7 M Ha+
Industrial Land Acquired 2.6 Lakh Ha 4.5 Lakh Ha**
Total Non Agricultural Land 1.14 M Ha 1.17 M Ha*
Forest Land Diverted 15000 Ha 3000 Ha
Waste Land Used 31000 Ha 1500 Ha
Net Sown Area 9.79 M Ha 10.10 M Ha
Total Cropped Area 11.36 M Ha 12.80 M Ha
Irrigated Area 3.97 M Ha 3.63 M Ha*
Total State Area 19.60 M Ha 19.60 M Ha
Proposed by present SEZ/SIR Projects in Gujarat, Estimated from GoG Database,
+ Estimated September 2010, @ = 2004-2007 **Indexb, GoG (Intented land
acquisition/utilization)

Since year October 2006 the SSI is included in the Micro, Small and Medium Enterprises
(MSME) through MSMED Act 2006, comprising about 2.30 lakh units employing 12.90
persons.9 These MSME units are located in various industrial estates including the estates under
the GIDC and outside.

8
GEC(2006), State of Environment Report 2005, Gujarat Ecology Commission, Vadodara
9
GOG (2010), Socio-Economic Review 2009-10, Directorate of Economics and Statistics, Gandhinagar
 Table 4: Estimated Land Utilization by Industries (1960-2010)

EstimatesInvestmen
EstimatesEmployme
Industrial Years Nos Type Estimated Industrial
Activities Land Units

nt

t
Utilized/
Proposed
GIDC Estates 1960- 248^ SMEs in Hectare 16326
26324** 300000 223**

(Rs.
(Functional) 2010 (182) Medium
Large
(Public and
Labour
Intensive)
SEZ 2004- 60 Large 32471+ NA 2024000+ 264+
Approved/Notified 2010 Private &
MNCs
SIR -Declared 2007- 13 Large 398453.46 NA 3107906* 350*
2010 Private *
MNC
Factories Till All Types 2.5 Lakh 23308^ 1093040^ 15767.02^
2006- ha (2004)+
07 +
^GoG, Statistical Abstract -2008, ** Estimated by GIDC(2009), + MOCI New Delhi (2010)
*GIDB (2010), ++ Lobo and Kumar (2009). Note: Employment for SEZ and SIR is estimated to
be after completion of projects declared in Vibrant Gujarat Summits and subsequent
implementation (2003-2010). The above estimates exclude the units and land utilized by the
Micro, Small and Medium Enterprises in the state.

There is shift in the industrial land allocation which was primarily through the Gujarat Industrial
Development Corporation till 2004, the large scale public industries were allotted land. After the
new industrial policy shift the SEZ and SIR largely is expected to allocate land to large
corporations both multi-national as well as national. The SIR is subject to be managed by
Regional Development Authority (RDA), apex organisation under the state government with out
involvement of local bodies. The democratic authority of the local bodies is diluted by the act to
facilitate the industrial development in the region.
(b) Peaceful Industrial Development Claims by State
The Gujarat state is projected to have peaceful industrial development comparision with the
difficulties faced by the large private corporations in other parts of the country. However, there
subject to close scrutiny of the main stream media it can be said the protests in Gujarat has not
got support from the civil society and failed to become a mass movement against the business
oriented state government (see Table 5).
Table 5: Summery of Peoples Protest and conflicts against Land Utilization by Industries under SEZ and SIT
Place Year of Project Land (ha) Villages District Opposition
Oppositio
n
Rajula 2007 Power Plant (Visa Power) 1000 3 Amreli Protest by Farmers
Mundra 2003-2009 Port /SEZ - Adani 13000 14 Kachchh Protest by Farmers/Fishermen/Legal
Jamnagar 2007 Reliance SEZ  1600  8 Jamnagar Protest and Legal case filed
Mahuva 2008-10 Nirma Plant & Quarry 3288 50 Bhavnagar Protest by leaders/Legal case
Umargam 2009 GVIC (Multi Product) 1100 2 Valsad Protest by Farmers
Sanand 2008 Tata (Nano Plant) 445 1 Ahmedabad Protest by Farmers
Navlakhi 2007 SIR -Corporate Farming 18210 37 Rajkot Protest by Farmers
Hazira 2010 SIR - Hazira-Pinjrat 19920.14 23 Surat Protest by Farmers
Sanand 2010 SIR - GIDC (Auto) 138000 12 Ahmedabad Compensation and Legal
Santalpur 2010 SIR - GIDC (Agro/Solar) 160000 13 Patan Farmers against Corporate Farming
Halol -Savli 2008 SIR- GIDC (Auto) 122000 12 Vadodara Protest for Job Promise
Dholera 2008-09 SIR 50000 30 Ahmedabad 25% area suffers from Soil Erosion
Okha 2008-2010 SIR 19790 21 Jamnagar Opposed by Farmers and Fishermens
Pipav 2010 SIR 14469 29 Bhavnagar Plan not known to people
Simar 2010 SIR 8370 24 Junagadh Protest by Fishermen/Farmers
Anjar SIR 112136.12 30 Kachchh Plan not known to people
Aliyabet 2009-10 SIR 16857 1 Bharuch Maldharis - Grassland Affected
Dahej 2003-2008 PCPIR (SIR) 41307 52 Bharuch Legal-Compensation
Changodar 2010 SIR 32248.4 65 Ahmedabad Protest against corporate farming
Source: Media Reports (Unconfirmed)
The state has been successful in facilitating industry to setup the special economic zones and
promulgations of Special Investment Region in and around these location would further allow
the industry to function as desired by state. Even though 60 SEZ in the state is in various
stage of implementation, the Gujarat Industrial Development Corporation would be largest
industrial land holders (57,000 ha) followed by Adani Group (13,000 ha) under its various
activities. What would happen in case land is not properly utilized for the intended purpose?
There is no clear mandate for the villagers or RDA to take back those lands under specified
period. There is no study available which would have assessed the environmental or social
impact of these large projects. Whether state is absolving itself from the national and global
environmental concerns (including rising sea water and climate change)?

Table 6: Corporate Land Holdings in Gujarat (Some Examples) Utilized

Insdustries Land Purpose Remarks
Holding*
Adani Group 13000 ha MPSEZ/Port/Power Resulted in destruction of Mangroves
Plants in Kachchh and Grass Lands in Kachchh
district
Reliance 11000 ha Existing Refinery, Existing: Jamnagar: 7500 Acres, Hazira
Group Jetty and SEZ 1000 acres, IPCL 1600 acres, Dahej 1800
acres and Proposed 10600 acres for
RILSEZ at Jamnagar10

Within the Main RIL Refinery 1627 acres

was utilised for Green Belt – Jamnagar
Farms Pvt. Ltd (100% RIL Subsidiary)
Exports Kesar Mangoes

About 9000 acres land was to acquired by

GoG for RIL in SEZ (declared dry
land/poor soil by District Agricultural
Officer) as refered from court case
against RIL in High Court and Supreme
Court. Rejected in favour of RIL.
Tata Group 1476 ha Auto and IT 1031 (IT Project) and 445 Ha (Nano
Industries Plant)
Essar Group 4500 ha Projects in Hazira 1500 acres Power Plant at Salaya, 700
(Surat) and acre green belt at Vadinar, 900 acre
Jamnagar Refinery Hazira Plant (Surat). In one of the study
25% of the 175 Sq.km land in Hazira is
utilised by ESSAR. However confirmed
data was not available.11
GIDC (GoG) 57000 ha Selling/Lease to 31241 ha Planning to Acquire in 2010-11
10
Times of India, Adani Biggest Land Lord, Ambani closing In, 30/07/06
11
Mansi Asher, Independent Researcher
 Corporates (as per GIDB data)
ADAG (Anil 1000 ha Power Plant at Land not taken by NTPC
Dhirubhai Pipavav
Ambani
Group)
L&T 400 ha Ship Building Yard Proposed to acquire at Hazira
Shell 200 ha LNG Proposed to Acquire at Hazira
Terminal/Cargo
Port
* Estimated from various reports and data, Mundra SEZ Site12, MoCI, GIDC (GIDC site)

(c) Inter basin Transfer of water for Bulk use in Industries including SEZ and SIR

The state which had fought with resistant to get the Sardar Sarovar project cleared in all
respects was desired to usher second Green Revolution in Gujarat by using the Narmada
water is now looking other way to allow industries an access to parched water resources.
With the massive industrial investment over Rs. 350 billion is expected to increase the water
demand from irrigation canal to over 3000 Million Litres per day. This is same source from
where state desperately needed water to irrigate its dry regions for crop production.

In one of studies conducted by GIDB which states that, ‘studies of various industrial estates
and stand alone units in Gujarat suggest 1 MLD of water demand is usually generated by an
investment of around INR 1000 to 1500 Million of investment.’ (GIDB :p 22) 13 Thus
requiring large volume for water for the industrial investment projected in state after year
2004.

In Kachchh it has been estimated to have water demand for industries of 380 Million Liters
per day against the designed 45 Million Liters per day under the water supply scheme by
SSNNL. This enforces either the potential diversion of the canal water by the state for the
industrial purposes. As per the recent report, ‘SSNNL was forced to stop implementation of
Canal Network in Ahmedabad, Bharuch, Vadodara and Mehsana districts for irrigating land
upto 1.2 lakh ha (6% of total 18 Lakh Ha) which is converted into NA use for Industries.
Additional 1.0 Lakh ha would be excluded from canal network by the project end.’14

12
http://66.98.208.83/~mundrapo/innerpage.php?id=4
13
GIDB (2009), Study of Development Potential of Kachchh, Dalal Mot MacDonald, Ahmedabad (pdf doc)
14
Input from Source: AhmedabadMirror.com (29Oct2010), Statement by MD (SSNNL)
 (d) Project Affected People (PAP) and R&R Policy

Since 2004 the states aggressive industrial land utilization approach has been increasingly
adopted by the pending Resettlement and Rehabilitation policy (R&R) in the state. The
proposed SIR or SEZ Act does not mention about R&R except land is to be acquired for the
SIR which is deemed to be public purpose under the Land Acquisition Act 1894. The central
government is awaiting R&R Bill and Land Acquisition Amendment Bill since 2007 to be
mandated as Act. With the present accelerated industrial development policy of the centre
and state its highly unlikely that these two acts would see light of the day. With more than
1000 SEZ sanctioned across the country, its upto the states to decide on the appropriate R&R
policy. States like Haryana, Andhra Pradesh, Himachal etc have formulated some policy
which is received well by the industries as well the affected people.
 Table 7: Land Utilization (Acquisition) for SIR & SEZ in Gujarat and Affected Population
Land Primary Primary Marginal Marginal
No. of Area Area Acquired Total Workin Cultivator Agricultura Cultivator Agricultural
S.n. SIR Villages District (Sq.Km.) (Ha) (Ha) Pop. g Pop. s l Labourer s Labourer
1 Aliyabet 1 Bharuch 84.24 8424 16,858 427 259 4 0 1 0
2 Anjar 32 Kachchh 552.32 55232 63,000 44,469 18149 4054 3648 393 900
3 Changodar 65 Ahmedabad 623.32 62332 32248.4 167229 80207 16702 20036 1396 14641
4 Dholera 30 Bhavnagar 1052.27 105227 87900 44683 19298 3564 4419 414 4552
5 Halol_Savli 12 Vadodara 86.06 8606 12200 26170 13248 4136 1807 1335 2565
6 Hajira 18 Surat 91.4 9140 19500 71314 29607 2438 3606 218 686
7 Navlakhi 47 Rajkot 569.11 56911 18200 74810 30107 11142 3851 2223 1941
8 Okha 18 Jamnagar 252.8 25280 19600 14986 6624 2994 697 2183 688
9 PCPIR 50 Bharuch 514.73 51473 45300 58324 24474 4553 7705 516 2621
Bhavnagar/Amrel
10 Pipavav 30 i 273.43 27343 14500 49142 21630 7546 4529 1587 3371
11 Sanand_Viramgam 12 Ahmedabad 202.84 20284 17700 28519 13480 2747 3599 287 3518
12 Santalpur 13 Patan 181.85 18185 18600 24648 11149 3646 3492 400 1216
13 Simar 23 Junagadh 144.01 14401 7800 38363 16461 5964 2799 2352 2454
Sub Total SIR 351 4628.38 462838 373406.4 643084 284693 69490 60188 13305 39153
All SEZ 48 Various 648.87 64887 32471.01 395555 143847 8773 14330 2149 8256
Grand Total 399 5277.25 527725 405877.4 1038639 428540 78263 74518 15454 47409
Sources: Ministry of Commerce and Industry – Web Data (2010), Vibrant Gujarat 2011 Sector Documents (2010), Census of India - CD Village Directory (2001)
From the land utilization data for the SIR and SEZ in the Gujarat state it is evident that about
4.5 lakh ha land is expected to be utilized for industrial activities and townships (see Table 7).
As per the available information the proposals are going to affect about 400 villages in the
state affected 1.0 million persons of the state. These villages comprise of 78000 cultivators
and 74,000 agricultural labourers would be directly affected by massive utilization of their
lands. These people would be required to be rehabilitated since livelihood deprival would
cause extreme hardship.

The agricultural labourers, casual labourers and marginal farmers belonging to poor, dalit and
tribal communities would be hardest hit in absence of active state intervention for their
rehabilitation. Since these areas are expected to invite new migrants to the industrial sites
which might result in surge in population from 1 million to 5 million during the next decade.
This would bring demographic transition in the project affected areas associated with the
social changes. With the advent of the new economies and activities the local resident
population would be marginalised unless they are trained and adaptive to new situation. It is
still unclear about the socio-economic impact of the industrial development on resident
population and areas.

(e) Impact on local and Regional Planning

The aggressive industrial development approach and resulted desire to achieve the social
development goals is on agenda of the state government. The present development is against
the backward areas development norms where ‘Agriculture First’ strategies for development
of backward areas were adopted during the earlier plan periods. Traditionally the industries
were supposed to have functional relationship and consistent with their region which was
neglected during the current centralised industrial development by the state and centre. Is this
industrial development is as per the central or state planning documents? This path would
strengthen selective pattern of the development in the developed regions and relatively better
off sections of the population. It will neglect the relatively backward regions which are
environmentally degraded and weak in infrastructural facilities, as these regions may not lead
to high return on investment in the short run.

It is also clear from the present policy that state continues to promote the developed region
whereas resources of backward regions are exploited while cheap land is being utilized.
Agriculture unfortunately remains a non priority sector for the states development policy
under the influence of large corporations and private capital. This selective development
would put constraints on state growth in long run by (a) leaving agriculture weak and
fluctuating, (b) widening regional disparities in growth and (c) shrinking of overall size of
market in the state. Thus present industrial development strategy would be making difficult to
remove poverty level in the rural Gujarat in long run without excessive migration of people to
project regions.

State creation of Special Investment Regions (SIR) and Special Economic Zones (SEZ)
would fuel the urbanisation of the remaining districts without taking appropriate reforms and
development strategies for the existing small and medium towns. The neglect of small and
medium towns by the state and promotion of new urban settlements would be serious impact
on the survival and livelihood of city and its people.

Significant power was granted to the local bodies under the 73 rd and 74th constitutional
amendments, where in the local bodies had active role in the development of regions. In the
present SEZ and SIR Acts the local bodies are not to be consulted by the state or the
industries. It is the state which decides the location of industries without even consulting the
State Pollution Control Board. The mainland Gujarat from Mehsana to Vapi is already seen
concentration of industries since early 1960s. Further industrialisation in these belts would
cause serious damage to the environments as stated by the state of environments reports
prepared by the Gujarat Ecology commission.

(f) Over employment and Shortage of Labour in Gujarat

The state has least unemployment ratios in the country, with only 5 of the 1000 persons of
working population are unemployed. The state with aggressive industrial policy would allow
multiple and increased employment choice to its people. It can be estimated that state is
already short of labour force in Agricultural, Industrial and services sector of its economy.
With major industries like Diamond, Textile etc are failing to meet the labour supply from the
traditional sources, mainly migrants from poorly developed states. The success of the rural
employment guarantee schemes in many parts of India including Gujarat would provide
initial setback in the labour supply. The cost of the production and labour accumulation in the
state is slated to increase as the demands between the sectors are going to increase. At present
60.99 Lakh persons are employed in 24.26 lakh establishment engaged in different economic
activities other then crop production and plantation in state (SER 2010). The proposed SIR
and SEZ are expected to generate employment to additional 50 lakh persons in next decade
requiring high and semi-skilled work force. This might result in diversion of more working
population from the primary sector to the secondary and tertiary sector. In spite of the
primary sector facing the shortage of labour required for the commercial crops like cotton and
Tobacco, the industries would further trigger the exodus of people from this sector. Gujarat
would be having good capital investment but might face severe shortage of labour and skilled
persons.

References

GOI, Website Ministry of Commerce and Industry, GoI, GIDB (Gujarat Industrial
Development Board)
GOG, Website of GIDB, accessed (August-September 2010) for online information
Lobo and Kumar (2009), Land Acquisition, Displacement and Resettlement in
Gujarat (1947-2004), Sage Publication, New Delhi
GOG, Presentation Material of Vibrant Gujarat 2004 to 2009 (PDF and PPT
Documents)
GoG Official Website - Industria Policy and Other Documents
GOG, Statistical Abstract (2007-08), GoG, Gandhinagar, 2009
INDEXb (2010), Special Investment Regions: Sector Profile, Vibrant Gujarat 2011
GOG (2010) Socio-Economic Report 2009-10, Directorate of Economics and
Statistics, Gandhinagar