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Evaluation and Monitoring of Different

Schemes for Development of Industrial


Park in Gujarat
Presented By:
Abhilasha Solanki
Enrolment No: 201500601010154
Guided By:
Prof. Gurmeet Singh

N R INSTITUTE OF BUSINESS MANAGEMENT

Presentation Flow
1

Research Methodology

Introduction to Topic

Analysis & Interpretation

Findings

Recommendation

Conclusion

Research Methodology

Problem Statement:

What is the necessity of different schemes for the development of Industrial Park in Gujarat?
How effective these schemes are for the development of Industrial Park in Gujarat?
What are important provisions of these schemes?

Objectives:

To know the necessity of different scheme for the development of Industrial Park in Gujarat
To know the effectiveness of the scheme for development of Industrial Park in Gujarat
To know the problems in implementation of different schemes for development of Industrial
Park in Gujarat
To know about issues faced by developers in implementation after being registered under the
schemes

Literature Review:

(Saleman, 2014) Industrial parks are as popular as they are controversial, in


India and globally. At their best they align infrastructure provision and
agglomeration economies to jolt industrial growth. More often, they generate
negative spill-overs, provide handouts, sit empty, or simply do not get built.
(Hollnder, 2009) The first workshop on Sustainable Management of
Industrial Parks which was jointly organized in 2004 in Leipzig by the
Institute of Eco-Planning and Development of the Dalian University of
Technology . Scholars, practitioners and administrators discussed General
Aspects of Sustainable Development, Sustainable Operation of Companies
in Industrial Parks, and Sustainable Development of Industrial Parks.

Scope of Study:
The scope of study is wide as it identifies impact and effectiveness of the different schemes
for development of Industrial Park.
The study is limited up to Industrial Park Developer who is developing Industrial park under
different scheme at different districts of Gujarat.
The scope of this study is to identify impact, effectiveness that affect developers perception
towards industrial park scheme, the reasons behind why they do / dont prefer to register
under different Industrial Park scheme.

Research Design:
Descriptive Research Design

Sampling Frame:
Sample size is 10
Sampling technique is Convenient Sampling
Sampling Unit : Some Districts of Gujarat

Data Collection Method:


1. Primary Data:
Questionnaire
2. Secondary Data:
Past Researches
Web Information
Newspaper

Benefits of the study:


This study will help us to understand the necessity of different schemes on the
development of Industrial Park in Gujarat
This study will help us to understand the effectiveness of the different schemes for the
development of Industrial Park in Gujarat
This study will help us to know the Perception of Developers about the different scheme
for development of Industrial Park in Gujarat

Limitation of the study:

Due to limited time available for the research, very few people were selected for
the study. The sample size is 10 only.
This study is limited up to some districts of Gujarat only. The number of Industrial
Park covered was limited.
The study was conducted within a limited period of time, so the study may not be
detailed, full-fledge and utilitarian one in all aspects

Data Analysis Tools:


The data analysis tool which I have used is SPSS Software.

Industrial Park
Industrial Parks - An Industrial Estate where infrastructure facilities
required for Industries and Service Sector Activities like:

Developed Land/Plot
Water Distribution
Communication Network
Effluent Treatment and Disposal Facilities for treated effluents
Internal Roads
Electricity

Comparative Statement of different Industrial Park


schemes
Sr.n
GR Dated.
o.
Particul 10/06/2004
ar

Not specified

GR Dated.
20/10/2011

GR Dated.
26/02/2013

100 acre

100 acre ,
50 acre for food &
agro sector

Minimum
Area

30
Minimum
number
of Units
Sector
All Sectors

30

All Sectors

25

GR Dated. GR Dated.
21/4/2015 21/4/2015
for
logistic
park

20 hectares 20 hectares

10

5 Mfg. sector like


All sectors
1. Auto & Auto
Component
2. Specialty & Fine
Chemicals,
3. Solar & Wind
Equipment
4. Electronics
System Design
& Mfg,
5. Food & Agro.

10

Logistic/serv
ice Sector

Sr.n
GR Dated.
o.
Particul 10/06/2004
ar

GR Dated.
20/10/

Quantum Industrial
Max Rs.10
of
park-20% of Crore for link
Assistanc
fixed capital infrastructure
e
and
maximum
100 lacs (1
crore)
Mini industrial
park-25% of
fixed capital
and
maximum 50
lacs
Hi-tech park
50% of fixed
capital and
maximum
250 lacs(2.5
crore)
Export park

GR Dated.
26/02/2013

GR Dated.
21/4/2015

50% of Total
expenditure Max
Rs.20 Crore for core
infrastructure

25% of
Eligible fixed
capital
investment
except land
cost Max Rs.
30 Crore

GR
Dated.
21/4/2015
for
logistic
park

25% of
Eligible
fixed
capital
investment
except land
cost Max
Rs. 15
Crore

Sr.n
GR Dated.
o
Particula 10/06/2004
r

Stamp
duty
exemptio
n

Project
completio
n

Number
of park
approved
by
SLAC/SLE
C

GR Dated.
20/10/2011

GR Dated.
26/02/2013

GR Dated. GR Dated.
21/4/2015 21/4/2015
for
logistic
park

Stamp duty at 100 %


Reimbursement @ 100 % to
Reimburse
the rate of 50% exemption for 100 % on
developer & ment of
of duty.
developer &
purchase of land by 50 % on
stamp duty
50 % plot
developer and
purchase of as
sales to
@50% on purchase plot
approved by
industry
of plot.
(reimbursem SLEC
ent stamp
duty)
5 years
5 years with
5 years
5 years , 7
3 years
Minimum 30
all the 30
years, 10
industrial
units in
years
/service units
production
accordingly
land area 20
,50 and 100
hectares
29 (Two
33
03
12
00
converted in

SEZ and one

got registration

cancelled)
So effective

Analysis & Interpretation


1) Awareness about Different schemes for Development of Industrial Park

Q1 Aware about different schemes for Development of Industrial Park?

Cumulative

Valid

Frequency

Percent

Valid Percent

Percent

10

100.0

100.0

100.0

Yes

2) Various Medium through which


Developer know about Different
schemes for Industrial Park

3) Reasons for Investing in


Industrial Park

4) Various Impediments in Implementing the Projects

$Q4.1 Frequencies
Responses
N
What are Impediments in
implementing the projects? Q4.1 Market Recession

Q4.4 Lack of Single Window


System

Q4.5
Lack
of
prompt
response to different queries
by Government dept

Q4.6 Delay in getting land


use
Total

Percent

Percent of Cases

35.7%

50.0%

21.4%

30.0%

14.3%

20.0%

28.6%

40.0%

14

100.0%

140.0%

5) Different Lacunas in
Implementation of the Schemes

6) Various Means of Financing

7) GIDC presence a main cause of


Industrial Development in Gujarat

8) Incentives offered under different


schemes are attractive

9) Monitoring System for different


Industrial park scheme is Satisfactory

10) Vibrant Gujarat event is main boosting


factor for Establishing Industrial Park

11) Surrounding Infrastructure facility is


important for Establishing Industrial Park

12) Land bank with Government is


important factor for Establishing Industrial
Park

13) Age

14) Gender

15) Hypothesis Testing


N
o
1

Significant Standard
Hypothesis (HO)

Industrial Park Developer is


aware about the schemes

Interpretation:

Test
Binomial

Greater than

Value

Value

or less than

0.002

0.05

0.002< 0.05

Test

Acceptance
or
Rejection
H0 is
rejected

Here, significant value is less than 0.05 so we reject the null hypothesis and

accept the alternate hypothesis. Thus, we conclude that all respondents are aware about the
different schemes for development of Industrial Park.

0.002
0.05
0.002 < 0.05
H0 is
Incentives offered under Binomial
different
schemes
for
Test
rejected
Industrial park are attractive
for
Industrial park
owners
Interpretation: We conclude that an incentive offered under different schemes for development of
2

Industrial Park is attractive to all the Industrial Park Developers. Thus, developers prefer to develop
parks in Gujarat because of the attractive incentive offered under different schemes.

Significant Standard
No

Hypothesis (HO)

Test
Value

Value

Greater than
or less than

Acceptance
or
Rejection

Binomial
0.002
0.05
0.002< 0.05
H0 is
Surrounding Infrastructure
Facility is important for
Test
rejected
establishing Industrial Park
Interpretation: We conclude that surrounding Infrastructure facility is important for

establishing Industrial Park. Also, developers registering under different schemes get the
necessary infrastructure facility for developing the Industrial park.

Presence of GIDC is not a


main cause for development
of Industrial Park

Interpretation:

Binomial
Test

0.344

0.05

0.344> 0.05

H0 is
Accepted

We conclude that presence of GIDC is not a main cause for development of

Industrial Park. Industrial Park feels that absence or presence of GIDC has nothing to do
with the Industrial Development in Gujarat

Significant Standard
No

Hypothesis (HO)

Vibrant Gujarat initiative


succeeded to attract Private
Industrial Park

Test

Binomial

Greater than

Value

Value

or less than

0.021

0.05

0.021< 0.05

Test

Acceptance
or
Rejection
H0 is
rejected

Interpretation: We conclude that Vibrant Gujarat Initiative has succeeded to attract the

Private Industrial Park. Due to the Vibrant Gujarat Global Summit, more people are getting
aware about the Industrial Park and different schemes and their benefits

There is a feedback
mechanism in monitoring of
Industrial Park scheme

Interpretation:

Binomial

0.002

Test

0.05

0.002< 0.05

H0 is
Rejected

We conclude that feedback mechanisms in monitoring of Industrial park

scheme are Satisfactory. The Industrial Park developers are happy with the monitoring
system offered under different schemes of Industrial Park

Significant Standard
No

Hypothesis (HO)

Availability of different
resources is important factor

Test

One-sample
T Test

Greater than

Value

Value

or less than

0.000

0.05

0.000< 0.05

Acceptance
or
Rejection
H0 is
rejected

for selecting location for


development of Industrial
Park

Interpretation: we conclude that availability of resource is important factor for selecting


for Development of Industrial Park in Gujarat

Findings
From the above analysis, following are the findings based on this study:

All the respondents are aware about the different schemes for development
of Industrial Park. There is not a single developer who is not aware about
the schemes for Industrial Park.

The main reasons for investing in the Industrial Park are Industrial
Development in Gujarat, Vibrant Gujarat Initiative, and Ease of Doing
Business in Gujarat.

There are different lacunas in implementation of the schemes. And these


are: Delayed land approvals, Red Tapism, Lack of coordination between
different Government departments.

The different means of Financing are: Personal Finance, Bank Finance, and
Loan from other sources

The study shows that an incentive offered under different schemes for
development of Industrial Park is attractive to all the Industrial Park
Developers.

This study also shows that surrounding Infrastructure facility is


important for establishing Industrial Park. Also, developers registering
under different schemes get the necessary infrastructure facility for
developing the Industrial Parks.
According to this study, Vibrant Gujarat Initiative has succeeded to
attract the Private Industrial Park. Due to the Vibrant Gujarat Global
Summit, more people are getting aware about the Industrial Policies
and different schemes and benefits offered under the schemes..

This study reveals that feedback mechanisms in monitoring of


Industrial park scheme are Satisfactory. The Industrial Park
developers are happy with the monitoring system offered under
different schemes of Industrial Park.
The study shows that availability of resource like availability of
skilled/unskilled labor, water, connectivity to rails and roadways is
important factor for selecting location for Development of Industrial
Parks in Gujarat

Recommendations
The following are the recommendations based on this study:
Speedy disposal of land use permissions can boost up the implementation
of Industrial Parks schemes.
Single Window System for different permissions required for
implementation of Industrial Parks can lead to Ease of Doing Business in
Gujarat.
Coordination between different Government Departments
implementations of Industrial Schemes seems to be very important.

for

Skill Development Centers and Industrial Training Institutes (ITI) can


also work as a support system for upcoming industrial growth in Gujarat.

Easy and speedy availability of bank finance can also boost up


the implementation of Industrial Parks Scheme within time
frame.
If Start Up Projects are given priority in Industrial Park
Schemes on concessional basis then market recession can be
avoided.
For setting up Industrial Park several factors like availability
of skilled/unskilled labor, water, vicinity to port, connectivity
to roads and railways are important.

Conclusions
From the above research following conclusions are derived:
By analysing the hypothesis it is concluded that all
respondents are aware about the different schemes for
development of Industrial Parks.
All the respondents are believed that the monitoring system for
different Industrial Park scheme is satisfactory.
This study also shows that surrounding Infrastructure facility
is important for establishing Industrial Park.

The study shows that availability of resource like availability


of skilled/unskilled labor, water, connectivity to rails and
roadways is important factor for selecting location for
Development of Industrial Parks in Gujarat.
The study shows that an incentive offered under different
schemes for development of Industrial Park is attractive to all
the Industrial Park Developers..

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