Manufacturing of
Warships and Submarines
Aerospace & Defence
Government of Gujarat
Contents
Project Concept
3
Market Potential
4
Growth Drivers
6
Gujarat – Competitive Advantage
7
Project Information
9
- Location/ Size
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Players
- Project Outline
Project Financials
13
Approvals & Incentives
14
Page 2
Project Concept
Naval ships and submarines
►
Naval ships and submarines/naval vessels built and primarily intended for naval warfare.
Usually these ships belong to the armed forces/navy of a state/country.
►
Naval vessels are utilized for combat wars, managing the exclusive economic zone (EEZ),
providing maritime security to coastal areas, and offering efficient disaster management.
►
These vessels are designed to withstand damage and are usually faster and more
manoeuvrable than merchant/cargo ships. Vessels carries weapons, ammunition and supplies.
►
Naval vessels are categorized as into high-end warfighting vessels installed with expensive
weapons systems, submarine, and basic patrol vessels for low-intensity missions equipped with
essential equipment, sensors, and weapons.
Classification of naval ships/vessels
High-end
warfighting
vessels
Aircraft carrier
►
Weight ranges
from 50,000 tons
to 100,000 tons
►
Long flat deck for
aircraft take-off
and landing
Amphibious
ship
► Weights more
than 10,000 ton
►
Destroyer
►
Can carry
helicopter and
support on-shore
forces
Fast and
manoeuvrable
long-endurance
warship and
weights 5,0009,000 tons
Global market share by naval vessel type
(2014)
Frigate
30.3%
Other warships
62.9%
6.8%
►
100% = US$36.1 billion
Corvette
►
Weights 2,0005,000 tons
►
Weights <2,000
tons
►
Designed for
protecting other
warships and
anti-submarine
operations
►
Fast and lightly
armed warship
used for
patrolling
purpose
Submarines
Aircraft carrier
Basic patrol
vessels
Submarines
Globally, submarine manufacturing accounts
for approximately one-thirds of the total
naval vessel market followed by aircraft
carrier which accounts for ~7% of the total
market.
Source
Global Warship and Naval Vessels Market – 2015-2019, Technavio, http://www.technavio.com/report/global-defense-warship-and-naval-vesselsmarket
“The Naval Vessels and Surface Combatants Market in India to 2025: Market Brief”, Strategic Defence Intelligence, 1 November 2015 via Thomson
One
Page 3
Market Potential
Market potential - Global
Global Naval vessel market
(in US$ billion)
36.1
2014
36.7
37.3
38.0
38.6
39.3
►
During 2014-2019, the global warship
and naval vessels market is expected to
grow at a CAGR of 1.7% from US$36.1
billion in 2014 to US$39.3 billion in 2019.
►
The key catalysts driving the global
growth are demand for advanced naval
vessels for effective defence and
surveillance mechanism.
►
Emerging countries, such as China and
India, have increased their defence
budgets, and are buying new naval
vessels to strengthen their defence
capabilities. Even the demand from the
developed countries such as the US and
the UK are expected to remain stable till
2019.
►
The Americas has been the largest
market for warship and naval vessels;
however, the growth is gradually shifting
toward the Middle East and Asia Pacific.
►
The US continues to maintain a stable
naval spending driven by their expected
involvement in the Middle East and ISIS
crisis. Americas is expected to hold the
leading position in the naval vessel
market till 2019.
►
The market in APAC is expected to gain
momentum on the basis of a
considerable GDP growth, naval
tensions and a relative rise in the
defence budget.
►
The Middle East and Africa are the other
emerging markets for the warship and
naval vessels market in EMEA (Europe,
the Middle East and African region).
However, in the EMEA region the
European Market is expected to decline
marginally.
2015 2016E 2017E 2018E 2019E
Source: Global Warship and Naval Vessels Market – 2015, Technavio
Naval vessel market – by region (2014)
Americas
26.0%
Asia Pacific
45.0%
EMEA
29.0%
100% = US$36.1 billion
Source: Global Warship and Naval Vessels Market – 2015, Technavio
Naval vessels market – by region (2019)
Americas
26.2%
Asia Pacific
44.6%
EMEA
29.2%
100% = US$39.3 billion
Source
“Global Warship and Naval Vessels Market” – 2015, Technavio
Page 4
Market Potential
Market Potential - India
Total navy warship market (India) 2015-2025
(US$ billion)
Indian Navy vessel market
(in US$ billion)
19.2%
31.8%
4.0
2.9
3.1
2.9
3.0
3.1
3.2
19.5%
29.6%
2015 2016E 2017E 2018E 2019E 2020E 2025E
Corvettes
Frigates
Source: The Naval Vessels and Surface Combatants Market in India to 2025, Strategic Defence Intelligence
Aircraft Carriers Others
100% = US$36.5 billion
►
During 2015-2025, the Indian naval vessels and surface combatant market is expected to grow
at a robust pace of 3.4% per year to reach US$4 billion per year in 2025 from current level of
US$2.9 billion (in 2015).
►
The spending levels are expected to rise driven by rising activities in the coastal regions by
neighbors especially China
►
The navy's current strength is 140 vessels. Most of these warships are Russian-made, and the
concern is, that these ships are aging faster than new ones can be inducted. Therefore, there is
a greater need of private participation in the navy vessel manufacturing industry.
►
The key programs expected to be executed till 2025 includes, Project 17A Stealth Frigates,
which aims to procure seven stealth frigates; Missile Stealth Destroyers Project-15B, which
aims to deliver four guided-missile stealth destroyers in order to replace the Indian Navy’s aging
Rajput class destroyers; the Indian Navy’s aircraft carrier project, which aims to induct
indigenously built aircraft carriers which are currently under construction.
Indian navy warships market – by type
(in US$ million)
Expected CAGR
786
695
405
780
Others
15-25
9.6%
15-25
4.0%
15-25
0.9%
1,200
1,100
2015
2025E
Frigates
Corvettes
Source: The Naval Vessels and Surface Combatants Market in India to 2025, Strategic Defence Intelligence
Page 5
1.2%
1000
1,000
Aircraft Carrier
15-25
Growth Drivers
1
Modernization of
Indian Navy and
focus on maritime
surveillance
India is focusing on military modernization and has explicitly spelt out
in the Long Term Integrated Perspective Plan (LTIPP), for military
modernization, covering the period up to 2027. India has prioritized
the enhancement of overall coastal and marine security and setting
up a special security force Sagar Prahari Bal (SPB).
2
3
4
5
Offset requirement
by Government of
India (GoI)
Indigenous
manufacturing of
defence
equipment
Labour cost
advantage
Simplification of
procedures for
Buy and Make
Indian
GoI has set an offset requirement of at least 30% for all defence
equipment including navy vessels and warships. According to the
offset policy, the foreign vendor is obligated to invest at least 30% of
the deal value in the Indian defence industry which is likely to create
a market opportunity worth US$50 billion. The offset policy can be
discharged through setting up warship facility in India or by procuring
directly from Indian part suppliers.
The government is focusing on increasing indigenous defence
equipment manufacturing. The private players are also allowed and
various exemptions such as license charges, expenditure on
purchase, lease or rental of land/land rights, capital expenditure, etc.
are provided to boost private participation in the defence sector.
India offers a cost advantage in manufacturing for both material and
labour cost. Compared to other defence manufacturing destinations
such as Russia and South-East Asia, the engineering labour cost
offer a 20-30% cost advantage while the manufacturing labour cost
advantage is around 15-25%. These advantages are even higher
when compared with Europe and North America.
The Defence Procurement Procedure (DPP) 2013 and 2016 have
given highest preference to Buy and Make (Indian) category for any
requirement allowing the private industry to participate in
maintenance and transfer of technology (ToT) thereby providing a
level playing field to it with foreign OEMs and DPSUs.
Source
“Defence Expenditure in India to 2020: Market Review”, Strategic Defence Intelligence, August 2015
“Air Force Expenditure in India to 2020: Market Brief”, Strategic Defence Intelligence, May 2015
“Gujarat: Emerging Base for Indigenization of the Indian Defence Industry Defence Offset Sector Profile”, Vibrant Gujarat 2015, 30 September 2014
Page 6
Gujarat - Competitive
Advantage
Strong Micro Small Medium Enterprise (MSME) base
MSMEs play an important role in the defence
manufacturing supply chain as most large companies
use MSMEs to deliver significant parts of their projects.
Gujarat has Engineering MSME clusters in and around
Ahmedabad, Rajkot & Vadodara Districts and is ranked
as the best Indian state for MSME asset base.
The SME companies play a critical role in the entire
supply chain for the A&D sector.
Gujarat aims to target 35% of the possible Defence
Offsets to be sourced from India.
Gujarat’s industrial sector comprises of over 5,75,000
MSME’s providing employment to 3.7 million people.
The MSME sector in Gujarat registered a CAGR of 19%
since 2009.
►
►
►
►
►
►
Leading MSME clusters in Gujarat
Mandal
Jamnagar
Rajkot
Sanand
Vadodara
Gujarat currently has 60% share of the Indian shipbuilding order book. The Indian Navy has also
established a headquarter in Porbander due to strategic location of the state. Since May 2014, the
state got maximum number of industrial licences (22 same as Maharashtra) and include some key
defence projects such as armoured fighting and bullet proof vehicles.
Gujarat offers an established port sector and excellent technical
educational infrastructure
►
Gujarat has an established port sector with
a coastline of more than 1600 kilometres.
►
It has highest number of operational ports
and commercial cargo ports and is the first
state in India to invite Public Private
Participation (PPP) through competitive
bidding for port building.
Ports Structure of Gujarat - 41 Minor + 1 Major Port
►
Gujarat has ~120 engineering degree
colleges with an approximate intake of
more than 60,000 students per year.
►
In 2014, the tally leads for Mechanical
Engineering with 16,230 seats, followed
by Civil (9,950 seats), Electrical (9,839
seats) and Computers (8,160 seats).
Engineering degree colleges in Gujarat
5%
South Gujarat
Saurashtra
Kutch
15%
Govt. Colleges
Private
14 ports
23 ports
4 ports
Self-financed
80%
Source
“Manufacturing Sector – Profile”, Vibrant Gujarat website, 7 October 2014
Shipyards, Gujarat Maritime Board, http://www.gmbports.org/shipyards, accessed 15 July 2016
“Gujarat – Growth and Prosperity for All”, Vibrant Gujarat website, 25 August 2014
Page 7
Gujarat - Competitive
Advantage
Other advantages
Ease of doing business
► Only state which comply 100% with the environmental procedures. Gujarat fares
highly when it comes to setting up a business, allotment of land and obtaining a
construction permit.
Flourishing economy
► Gujarat contributes 7.2% of the Nation’s GDP and shows leadership in many areas
of manufacturing and infrastructure sectors. Gujarat’s SDP (State Domestic Product)
at current price registered a growth of 11% during the year 2014-15.
Strategic location and better infrastructure
► Located on the west coast of India, Gujarat is well connected to the major cities of
the world by air and sea routes. The state has 45 ports and large number of airports
in addition to an extensive rail and road network.
Easy availability of raw materials
► Many key industrial clusters such as foundry & forgings, steel pipes and tubes, steel
re-rolled products and fabricated metal products are located in close vicinity of
industrial hubs.
Favourable labour policy
► The Gujarat government has recently passed the Labour Laws Bill (December 2015),
to give an impetus to industrialization. The key reform includes a provision for out-ofcourt settlement to speed up the process labour related dispute resolutions.
Better social infrastructure
► Gujarat has one of the lowest cost of living amongst the Indian states and is
relatively less congested and less polluted, offering better standards of living to the
inhabitants and providing a better environment to work.
Source
“Gujarat – Growth and Prosperity for All”, Vibrant Gujarat website, 25 August 2014
“Manufacturing Sector – Profile”, Vibrant Gujarat website, 7 October 2014
Page 8
Project information
Location Suggested: Dholera Special Investment Region (DSIR)
►
Dholera SIR is an indicative location to set up naval vessel/warship manufacturing facility. The
facility can also be developed at any suitable location along the coast.
Dholera SIR : Key highlights
►
Area
920 sq. km
Developable area
567 sq. km
Land price
INR 600/ sq. meters (Oct’15)
►
►
Focus industries
Heavy Engineering, automobile
and auto ancillary, defence,
electronics, metals and
metallurgical products,, IT and
ITeS
Industry
Foundry &
Forgings
Steel
Location (Distance from
Dholera)
Industry
►
Kheda (91 km)
Anand (94 km)
Surendranagar (88 km)
Plastic and
polymers
►
Hazira (310 Km)
Glass
►
►
Dholera is strategically located
between the MSME clusters of
Gujarat.
Robust infrastructure in the region
(refer to the next slide for details).
Provide access to both domestic
and international market as a it is
connected to DMIC, major
airports as well as ports.
Location (Distance from
Dholera)
►
►
►
►
Sanand (97 kms)
Dahej (210 kms)
Vadodara (372 kms)
Jhagadia (211kms)
Source
“Dholera making it big as defence manufacturing hub”, Business line website, http://www.thehindubusinessline.com/news/national/dholera-making-itbig-as-defence-manufacturing-hub/article8253626.ece, accessed 14 June 2016
“Dholera International Airport”, CAPA website, http://centreforaviation.com/profiles/newairports/dholera-international-airport, accessed 16 June 2016
About : Dholera SIR, http://dholerasir.com/, accessed 16 June 2016
“HIGH SPEED METRO RAIL”, http://www.investindholerasmartcity.com/dholera-metro-rail-project/
“Port of Dholera (India)”https://www.searates.com/port/dholera_in.htm
Page 9
Infrastructure
Availability
Logistics & Connectivity
Rail
►
►
Road
Rail connection is being planned for
Dholera, while the nearest meter gauge
connection is Bhavnagar (34 km) and
the nearest broad gauge station is
Tarapur (103 km).
A metro rail is also being planned from
Gandhinagar to the Dholera SIR via
Ahmedabad.
►
►
National Highways: NH–8 connects the
Dholera SIR with Ahmedabad, Bhavnagar
and Mumbai. The region also has a good
connectivity with NH-8A which connects it to
Anand and Vadodara.
As a part of Golden Quadrilateral, the 500
km Mumbai- Ahmedabad- Vadodara Express
way connects the region.
Air
►
►
Port
►
The Dholera SIR is surrounded by four
peripheral airports Ahmedabad,
Vadodara, Bhavnagar, and Rajkot.
Also, it is very near to the newly planned
Dholera international airport which is
expected to become operational by
2018.
Other than the proposed port, another
port site is also proposed at a distance
of about 11 kilometres from the Dholera
SIR connected by road with
Ahmedabad–Bhavnagar highway.
Almost 2,057 hectares of Government
land was allocated for the development
of the new port site.
Utility
Water
►
Power
Gujarat Industrial Development
Corporation (GIDC) will provide water to
the proposed facility.
►
Gas
►
►
Electricity will be supplied by Gujarat
Energy Transmission Corporation (GETCO)
in the Dholera SIR.
Gujarat State Petroleum Corporation (GSPC) is the gas supplier to the site
through a well established pipeline.
The company needs to directly apply for gas to GSPC.
Source
“National Symposium on Best Practices to improve the Business Environment”, GIDC, 23 August 2015,
http://idco.in/Events/pdf/Land%20interventions%20in%20Gujarat%20VCMD%20GIDC.pdf
“Gujarat plans Rs 1,000 crore Dholera airport project to take on world's best in Dubai”, -Runways-dubai-airport-on-dubai, accessed The economic
times website, http://articles.economictimes.indiatimes.com/2015-02-05/news/58838216_1_five
Land price” http://www.Magicbricks.Com/property-for-sale/all-commercial-real-estate-Dholera-sir-in-Ahmedabad”, accessed 16 June 2016
“Aluminum plant in Gujarat”, http://www.thehindubusinessline.com/economy/rs-15000-cr-alumina-project-to-come-up-near-mundraminister/article5231540.Ece, accessed 17 June 2016
Page 10
Project Outline
Naval vessel manufacturing process
►
The process of producing ships and keeping the
production schedule in a modern yard is
essential for its efficiency and profitability.
►
The US, the UK and Russia are the leading
countries for defence ship manufacturing while
China, South Korea and Japan are the leading
commercial shipbuilding countries.
Design and production
planning
The hull form and arrangement of ship are determined
on the design stage. Research and development are
also conducted at this stage.
Primer coating, cutting and
processing of steel
Prior to processing operation, the steel is surface-treated
to prevent corrosion. Then the steel is cut and shape of
the hull is formed.
Panel line
The panels for hull blocks are made efficiently using a
dedicated production line system.
Sub assembly
The steel sheets are assembled to form smaller parts of
the hull.
Block assembly
The smaller parts formed in the sub assembly are
assembled to form the frame of the vessel.
Outfitting of defence equipment
Defence equipment such as guns, torpedoes, and guided
missiles are fitted on different blocks.
Final assembly
The blocks equipped with defence equipment are
assembled to form the vessel.
Source
“The process of shipbuilding”, Sanoyas Holding corporation, accessed 15 July 2016,
http://www.sanoyas.co.jp/en/business/ship/flow/index.html
Shipbuilding, Shippipedia, accessed 15 July 2016, http://www.shippipedia.com/shipbuilding/
Page 11
Project Structure
Project Structure & Implementation Model
Procedure for Naval ship building in India
Ministry of Defence (MoD) prepare the OSRs, which
Outline Staff Requirements
include the role of the ship, dimensions of its hull and
(OSRs) and Acceptance of
required capabilities. The OSRs are then given AoN as
Necessity (AoN)
per DPP guidelines.
Nomination of shipyard and
Preliminary Staff Requirements
(PSRs)
Capacity assessment of various shipyards are carried
out that meet the OSRs and then they are nominated.
The PSRs are to be promulgated based on the selected
option of the concept design.
Preliminary design and build
specification
Based on the promulgated PSRs, the preliminary design
activities are carried out by MoD/Shipyard in
consultation, as necessary. Then decided build
specifications are forwarded to shipyard(s).
Build strategy
The nominated shipyard(s) is/are to propose a build
strategy based on the preliminary build specifications,
required delivery schedules, yard infrastructure and
available resources.
Budgetary and estimated costs
After approval of the build strategy, the shipyard(s) is/are
to forward a budgetary cost for the construction of the
ship on the basis of the build strategy, along with draft
contract.
Negotiations, approval and
conclusion of contract
After negotiations with the Contract Negotiation
Committee (CNC), the contract is taken for approval
from CFA after which the contract is concluded.
Detailed design
On conclusion of contract, shipyard is to commence
Detailed Design, order equipment & material and obtain
binding data for the detailed design.
Procurement of ship-borne
equipment
Procurement of long lead and other items are to be
initiated at an early stage, to ensure timely availability
based upon the construction schedule.
Monitoring of project and
revision of cost
Closure of projects
Different committees such as Apex Steering Committee
and Committee under the chairmanship of Controller
Warship Production and Acquisition (CWP&A) monitor
the ship building.
The final closure of the ship construction project is
carried out within the time schedule of 12 months from
the document check list of the last ship of the project
Source
DPP – 2016, http://www.iesaonline.org/downloads/defence_procurement_procedure-2016.pdf
Page 12
Key Players
Key public players - India
Company
Location(s)
Mazagon Dock Limited
Mumbai and Nhava
Cochin Shipyard Limited
Kochi
Hindustan Shipyard Limited
Visakhapatnam
Garden Reach Shipbuilders & Engineers Ltd
Kolkata
Goa Shipyard Limited (GSL)
Vasco da Gama
Naval Dockyard
Mumbai
Shalimar Works Ltd.
Howrah
Key private players - India
Company
Location(s)
ABG Shipyard Limited
Surat and Dahej
Bharati Defence And Infrastructure Limited
Ratnagiri, Dabhol, Mangalore and Kolkata
Larsen & Toubro Limited
Hazira and Chennai
Reliance Defence and Engineering Ltd
Saurashtra
Western India Shipyard
Goa
Modest Infrastructure Ltd
Bhavnagar
Key players - International
Company
Headquarter
Product and services
Babcock International
London, the UK
Construction, up gradation and servicing
General Dynamics
Virginia, US
Designs, builds and supports warships
Lockheed Martin
Mitsubishi Heavy
Industries
Maryland, US
Nagasaki, Japan
Manufactures and services navy vessels
Manufactures marine engines, propellers,
turbochargers and other machinery
Source
“Global Warship and Naval Vessels Market”, Technavio, 26 October 2015 via Thomson One
“The Naval Vessels and Surface Combatants Market in India to 2025: Market Brief”, Strategic Defence Intelligence, 1 November 2015 via Thomson One
Page 13
Project Financials
Project cost
►
The total project cost of setting up a naval vessel manufacturing unit is ~INR10 billion. The
facility can manufacture different type of naval vessels such as Interceptor Boats, Naval cadet
training vessels and amphibious ships.
Project specifications
Details
Land requirements for the facility
165 acre
Number of naval vessels produced annually
2 units
Direct employment generation ( Over the period)
1,000
Approximate cost required for setting up a plant
INR 10 Billion
Pay-back period
Number of naval vessels produced annually
2
Average price per vessel
INR 2 Billion
Annual revenue of manufacturing unit
INR 4 Billion
Average Annual Growth rate
~10%
EBITDA margin (Average)
10%
Total payback period
~7 years
Minimum viable size
Fixed cost as percentage of revenue
30%
Variable cost as percentage of revenue
60%
Variable cost per vessel
INR 1.2 Billion
Profit above variable cost per unit
INR 0.8 Billion
Total fixed cost per year
INR 1.2 Billion
Minimum viable size
1.5 units per year
Sources of finance
Term debt
INR 5,8 billion
Equity/internal accruals
INR 4.2 billion
Total capital expenditure
INR 10 billion
Debt to equity ratio
1.4:1
Source
Annual report 2014-2015, ABG Shipyard, http://www.abgindia.com/Annual_Report_2014-2015.pdf, accessed 16 July 2016
“India’s Largest Private Sector Ship-building Company”, AGB Shipyard Investor presentation, December 2012,
http://www.abgindia.com/investor_presentation_2012.pdf
Page 14
Approvals & Incentives
Shipbuilding policy - 2010
►
Gujarat formulated the Shipbuilding/Port Policy in 1995 to promote private sector investment in
development of Greenfield Port. The policy was revised in 2010, according to the new policy
the role of Gujarat Maritime Board (GMB) will be as a developer, regulator and facilitator. GMB
will undertake the following:
Acquisition of Government land for the MSPs and other shipbuilding yard sites
Development of land and conducting technical studies and preparing development plans
Assist and coordinate to provide infrastructures viz. road, water, power and drainage
Endeavour for providing link approach to nearby National Highway/State Highway/Major District
road
Coordinate to provide common user jetty, if required
Navigational aids and dredging at MSP and providing common safety services
Identify and earmark area for common amenities viz. technical institutes, R & D, Banking/Postal
services, shopping, weigh bridges, primary health centre etc.
Endeavour for allotment of plots/facilities for shipbuilding and other services
Source
“Shipbuilding Policy – 2010”, Government of Gujarat, 12 May 2010, http://www.indextb.com/documents/shipbuilding_policy_2010.pdf
Page 15
Approvals & Incentives
Gujarat Industrial Policy 2015
Government of Gujarat has announced an ambitious Industrial Policy, in January 2015, with the
objective of creating a healthy and conducive climate for conducting business and augmenting the
industrial development of the state.
Quantum of incentives
The incentives under this policy will be available to all the Talukas listed in Government Resolution
dated 25/7/2016 except municipal corporation areas.
% of eligible fixed
Category of
% of Net VAT % of Net VAT to be
capital investment
Incentive period
Project Location
reimbursement to
paid to
(no. of years)
entitled for
(Taluka)
the unit
Government
Incentive
1
100
90
10
10
2
80
80
20
10
3
70
70
30
10
Net VAT incentives
Net VAT incentive will be reimbursed to the industrial undertaking in one financial year will not
exceed one-tenth of the total amount of eligible incentive.
Classification of the Project
Amount (in INR crore)
Ultra Mega Industrial Unit
500
Mega lndustrial Unit
400
Large Industrial Unit
150
Micro, Small or Medium Industrial Unit
50
Incentives under Gujarat A&D manufacturing policy - 2016
Government of Gujarat is in the process declaring an incentive scheme for Aerospace and defence
manufacturing in the State.
Incentives from Government of India (GoI)
Manufacturing of defence equipment is allowed 100% FDI on approval route; 49% through
automatic route
Procedure for grant of industrial licenses have been streamlined
A weighted tax deduction for defence players under Section 35 (2AA) of the Income Tax Act
Source: “Defense Manufacturing”, Make in India website, http://www.makeinindia.com/sector/defence-manufacturing, accessed 16 July 2016
Industrial Policy – 2015, Government of Gujarat, http://www.indextb.com/documents/102014-922908-G.pdf, 19 January 2015
Page 16
Approvals and
Incentives
Indicative List of Approvals
Approvals/clearance required
Department to be approached and consulted
Incorporation of company
Registrar of companies
Registration/Industrial license
Secretariat if industrial assistance (SIA) for large and
medium scale industries
Allotment of land
State industrial development corporation
No objection certificate (NOC) under
air and water pollution control acts
State pollution control board
Approval of construction and country
planning
►
►
►
►
►
Town and country planning
Municipal and local authorities
Chief inspector of factories
Pollution control board
Electricity board
Use and storage of explosives
Chief controller of explosives
Finance
For loans higher than INR 1.5 crore, all India financial
institutions like Industrial Development Bank of India(IDBI),
Industrial Credit and Investment Corporation of India(ICICI),
Industrial Finance Corporation of India(IFCI) etc.
Registration under state sales tax act
and Central and State excise act
►
Code number for export and import
Regional office of director general of foreign trade
Environmental clearance
Ministry of environment, forest and climate change after
conducting environment impact assessment (EIA) for any
project
Facilitation for setting up project
Industries Commissioner will facilitate for state clearances
required to set up project.
Hazardous waste import and export
approval
Ministry of environment, forest and climate change
Exiting business
Ministry of corporate affairs
►
Sales tax department
Central and state excise department
GoG has introduced single window facilitation portal for investors with undermentioned benefits:
► Centralized system to monitor applications
► User friendly and simplified application process for investors
► System for authorities and investors to check the status of applications
► Increased departmental ownership
► The unit shall be facilitated through ‘Investor Facilitation Portal’ for obtaining all the
necessary state approvals/ clearances - https://www.ifpgujarat.gov.in
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Industries & Mines Department
www.imd-gujarat.gov.in
Gujarat Industrial Development Corporation
www.gidc.gov.in
Office of Industries Commissioner
www.ic.gujarat.gov.in
Industrial Extension Bureau
www.indextb.com
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.
Office of The Industries Commissionerate
Block No. 1, 2nd Floor, Udyog Bhavan,
Gandhinagar 382 010. Gujarat
Ph.: 23252683/23252617
Email ID: [email protected]