Japan to set up auto component and engineering park in Gujarat

Gandhinagar: The Japanese are learnt to have zeroed in on a place near the proposed Maruti-Suzuki plant site - which is spread on about 700 hectares (ha) at Hansalpur, near Becharaji Temple - to set up a new auto component-cum-engineering park near Hansalpur, off Behechraji Temple, in North Gujarat.

Well-placed Sachivalaya sources said, a high-level delegation consisting of senior officials of the Japanese External Trade Organisation (JETRO) was here in Gandhinagar after visiting the site and told Gujarat government officials last week that the location would be "ideal" for Japanese units to come and invest in the nearby region for manufacturing auto components and other engineering products.

"JETRO officials have already had discussions twice earlier. This was the third round. At present, the Gujarat Industrial Development Corporation (GIDC) is in the process of working out details for setting up a new industrial estate near the Maruti site. The GIDC expects to acquire 1,100 hectares (ha) of land in the area", a senior official said.

"The GIDC has sent its proposal for administrative approval of the state government, after which measurement for area to be acquired will begin. In all probability, the new GIDC estate will be about 15 kilometres off the Maruti site", the official added.

The Japanese, officials point out, are interested in setting up shop in nearly half of the estate, or around 500 ha. Each unit will be between 3 and 6 ha, which will be made available by GIDC. "The deal may be clinched soon", the official pointed out.

"These will be essentially small Japanese units, of the type that exist near Chennai and National Capital Region (NCR)", the official said, adding, "The units will serve Maruti-Suzuki cars, to be manufactured off Bhechraji, and also the car manufacturing units to come up near Sanand, Tata Motors, which is manufacturing Nano cars, Peugeot and Ford, which will set up their auto facilities."

Besides, effort will be to go in for exporting the auto components in a big way. While infrastructural facilities were a major reason why Maruti-Suzuki chose Gujarat over other states, officials say, the Rs 4,000 crore plant on 280 ha was also set up because of "excellent port connectivity to Mundra". JETRO holds a similar view for auto component units.

Meanwhile, in an effort to boost industrialization in the region, Gujarat government has decided to widen the current road from Sanand to Bhechraji, which is about 90 km. "The current road is 7 metres wide. A decision has been taken to strengthen the road and widen it to 10 metres. Work order to widen the road has been given", a senior official said.

Japan likes to be a partner in national manufacturing policy: JETRO India chief

New Delhi: Japan wants to be a partner while rolling out India's national manufacturing policy which aims at creating 100 million jobs and enhancing the country's share in the GDP to 25 per cent in 10 years.

Japan External Trade Organization ( JETRO), an arm of the ministry of economy, trade and commerce is likely to propose to Indian government that Japan should be declared a partner country while promoting India's manufacturing policy.

N Noguchi, JETRO's chief director general in India told ET that most of 820 Japanese companies which are active in India are in manufacturing sector, and many more such companies are willing to shift their bases to India. Hit by economic downturn, the Japanese market is shrinking every day and most of the Japanese companies want to shift bases outside the country.

"After the disastrous flood in Thailand last year, many Japanese companies realized they should not concentrate their manufacturing centers only in one place. They want to set up manufacturing facilities in India so as to minimize risks", Noguchi said.

Noguchi who had an earlier innings in India between 2005 and 2010, said many Japanese companies were also enthused by the success story of the newly developed Neemrana industrial area in Rajasthan. Over 30 Japanese companies including Daikin Air-conditioning, Nissin Brake, Mitsui Chemical etc. are setting up their plants in Neemrana area.

"Japanese companies are already contributing to manufacturing sector in India. But if we officially partner with India's national manufacturing policy, the process will get a momentum," said Noguchi.