Page 48 - CV April-May 2019 issue

Vibrant infra Ankleshwar and religious tourism destinations like Dwarka), the
Sabarmati riverfront development, the Dholera Special Investment
Gujarat, one of the most industrialised States in the country, which Region, and Smart City projects in Gandhinagar, Ahmedabad, Surat,
leads in the production of pharmaceuticals, soda ash, salt, plastics Vadodara, Rajkot and Dahod. The Mumbai-Ahmedabad bullet train
and diamonds, is also the country's largest crude oil refining hub. Its project, the foundation stone for which was laid by Prime Minister
robust infrastructure — including 42 ports, 18 domestic airports and Narendra Modi and his Japanese counterpart Shinzo Abe in
one international airport and extensive road and rail, gas pipeline September 2017, has been facing resistance in eight districts of
network, 19 operational SEZs and eight notified Special Investment Gujarat through which the train will run. The land acquisition for the
Regions (SIR) and 182 industrial estates — has been lately ₹1.10-lakh crore project (for which Japan has extended a loan of
experiencing an additional boost from the growing renewable energy ₹88,000 crore at an interest rate of 0.1 per cent) was expected to be
generation and transmission infrastructure supporting it. fully operational by 2023. However, delays in land acquisition may
impact the ability to meet this deadline.
The State occupied the top position in the National Council of Applied
Economic Research's State Investment Potential Index (N-SIPI) in Renewable energy
2016 and 2017. According to the DIPP, FDI inflows into Gujarat
totalled $17.44 billion between April 2000 and December 2017, with Over the past several years, Gujarat has emerged as one of the
the State accounting for an about 5 per cent share of the overall FDI largest renewable energy generating States with the installed
inflows. capacity mix increasing from 18,832 MW in 2012 to over 26,522 MW
in 2017, expanding at an annualised rate of 7.09 per cent, according
Gujarat was one of the first States to develop regulatory frameworks to the Gujarat Energy Development Agency. While coal has remained
for PPP through the Gujarat Infrastructure Development Act. The the main source of fuel for power generation in the State, thermal
Gujarat Infrastructure Development Board (GIDB) has replicated its generation has been almost stalled as the major imported coal-based
success in implementing the PPP framework in the ports sector to power plants, including those of Adani Power, Tata Power, Essar
other sectors, including power, rail and road infrastructure. Power and other IPPs, faced challenges after the Supreme Court in
2017 disallowed a compensatory tariff to make up for the change in
According to a revised Blueprint for Infrastructure in Gujarat 2020
coal export policy in Indonesia, from where the coal is being
programme, an investment of around ₹11,8 lakh crore is planned for
imported. At the same time, the share of renewables in Gujarat has
the period up to 2020 and will cover sectors such as energy,
increased from 13 per cent in 2011 to over 25 per cent in 2017 (as on
transportation, SEZs, urban infrastructure and water, among others.
April 1, 2017), expanding at an annualised rate of about 21 per cent
during the same period. By 2022, the share of renewables is
Some of the upcoming infrastructure projects in the State include
expected to increase further, as the overall installed capacity in the
over 10 new airports (including greenfield ones in industrial areas like
State is likely to reach 17,133 MW.
46 / CONSTRUCTION VISION / May June 2019