Projection for additional capacity

Estimating demand for industrial park is a tricky issue, since the presence of an industrial park (IP) itself is a cause for generation of industrial investment in the nearby area. Another issue is to segregate the total envisaged industrial investment into what is likely to be located inside IPs, and units that are likely to come up outside IPs. Traditionally, small to medium units are more likely to be located in IPs. Further, Government policies also influence demand for industrial parks. An IP friendly policy should drive more and more investments to be set up within industrial parks, rather than coming up as standalone units.

The demand for industrial parks can be viewed as derived demand, with envisaged industrial investment acting as the driver.

Demand Estimation

Demand for industrial parks, as mentioned earlier, depends on the industrial investment envisaged in the State. Demand has been estimated by making assumptions regarding industrial growth, project investment to land area norms, phasing of projects and likelihood of announced or proposed projects getting commissioned.

Demand for industrial parks, and the investment required to meet this demand for the planning horizon 1999 - 2010 is presented below:

Supply

GIDC is planning a number of industrial parks to accommodate investments being envisaged in the State of Gujarat. The proposed area for these industrial park projects in the four IP categories is shown below:

Industrial Parks being planned by GIDC

The following locations have been proposed as chemical zones:

Proposed Chemical Zones

Demand-Supply Balance

The overall demand and supply for industrial parks is summarised below:

The above table indicates that the capacity of planned industrial park projects in General and Engineering categories exceeds the envisaged demand (till 2010). However, a demand supply gap is appearing in the case of chemical parks.

District-wise Distribution

A district-wise distribution of industrial investment reveals that Bharuch and Surat attract 22% and 20% of the total investment respectively. A higher share of these two districts in the total investments in the State of Gujarat is supported by IEM figures also.

District-wise Industrial Park Capacities being Planned