Ahead of the Japanese Prime Minister Shinzo Abe’s scheduled visit to India in September, Gujarat government is setting up a brand new “Japanese Industrial Park” on the Delhi-Mumbai Industrial Corridor (DMIC) passing through Ahmedabad, that is spread on 1555 hectare and is 15 times bigger in size compared to an existing one.
“A new Japanese Park will come up at Khoraj near Sanand. This is the second such park that we are setting up for the Japanese in the state,” said MK Das, Principal Secretary, Industries and Mines Department, Government of Gujarat. The state government is expected to spend over Rs 400 crore in building the basic infrastructure in this park. The Indian Express had reported earlier that the Gujarat Industrial Development Corporation (GIDC) had acquired over 1000 hectares of land in a record 60 days in 2013, where a phenomenal Rs 1700 crore was paid out as compensation to over 400 farmers for the land acquired about six kilometers near Sanand.
“The existing exclusive “Japanese Industrial Park” near Mandal in Ahmedabad district has saturated and a need for a new one has risen,” Das said. The existing park located about 90 kilometers away from Khoraj in the same district is built over 100 hectares and operates on a unique plug-and-play model. It currently has about 10-12 Japanese MSME units.
The current Japanese investment in Gujarat is close of USD one billion and is expected to reach USD three billion by 2020. There are over 80 Japanese companies in the state including the likes of Maruti Suzuki, Mitsubishi, Nippon, Hitachi, Panasonic and others, say state government officials.
The push for a second exclusive Japanese Industrial Park at Khoraj in Ahmedabad district comes after a delegation from the Gujarat government visited four cities in Japan scouting for investments in July 2017. During this visit, Gujarat government had not only hard-sold the new industrial park that it is planning to build exclusively for Japanese companies, but had also inked deals with at least four Japanese companies who will set up their business in Gujarat in the near future. “The details of this will be made public, during Japanese PM’s visit,” the official said adding that Abe will also visit Gujarat along with Prime Minister Narendra Modi.
The new Japanese Industrial Park is being built in close coordination with the Japan External Trade Organisation (JETRO) which is also be setting up an office in Ahmedabad which will be as big as the one in Delhi. “This new JETRO office in Ahmedabad will help them handle and support trade between the two nations,” Das said.
The state-government arm, Gujarat Industrial Development Corporation (GIDC), has already floated tenders to appoint a master consultant for detailed project planning, and preparation of a Detailed Project Report. It has also initiated work on building basic infrastructure including roads, water pipelines and street lights. This industrial park will 969 hectares reserved for industrial development, 227 hectares for roads and transportation, 136 hectares of green spaces and 141 hectares of residential zone.