Over 300 large industrial projects, vowing 96,000 jobs, ‘dropped’ in Gujarat over last 10 years
In the last decade, during which five Vibrant Gujarat Global Investors' Summit were held, as many as 330 large-scale industrial projects, promising to provide employment to over 96,000 people, were "dropped" due to various reasons.
Between 2003-2012, agreements for 5,263 large industrial projects worth Rs 8.9 lakh crore were inked with the Gujarat government. A majority of these projects are still "under implementation" stage, which include several that are still on the drawing board, said sources in the government.
According to figures sourced from the industries department, most of the 330 large "dropped" projects" (industrial units having investment exceeding Rs 10 crore in plant and machinery are classified as large industrial units) were shelved between 2003 and 2006.
These figures are part of the larger data-base that the government collects about the status of various industrial projects during a particular year.
Four projects under the aegis of Gujarat Agro Industries Corporation Ltd (worth Rs 450 crore signed during the 2003-05 investors' summits) were among those dropped. These include an agro-processing facility proposed by the Adani Port Infrastructure Ltd (Mundra), an agro and food park (Dahej) by Adani Export Limited, a drip irrigation project by Gujarat Urja Vikas Nigam Limited and a centre of excellence and R&D centre for castor oil industries by Jayant Agro Organic Ltd in North Gujarat.
One of the latest firms to drop its plans in Gujarat was Pradip Overseas. The company dropped its plans to develop a textile special economic zone (SEZ) at Bhamasra near Ahmedabad last year. The project was shelved due to poor response from the textile manufacturers and the recent changes in tax conditions for SEZs.
Another high-profile project recently scrapped is the state's tallest, 52-storied building project envisioned by the ICICI Bank.
"There are various issues surrounding these dropped projects. Companies pull out due to lack of feasibility, unavailability of land, poor financial position, changes in government policies, etc," said a government official.