Management of Estates, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura

Management of Estates, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura

Project Report on

Management of Estates, Up-gradation of Infrastructure, Study of Operations and Maintenance at Vatva, Naroda, Odhav & BehrampuraGujarat Industrial Development Corporation

By

Manish Joshi (B- 18)

Mitali Thacker (A-55)

Faculty Guide

Company GuideProf. Tejal Andharia

Mr.Ganesh Raman

Prof. Jatin Cristie Ms. Dipti Maratha

MBA Program

Amrut Mody School of Management

Project Report on

Management of Estates, Up-gradation of Infrastructure, Study of Operations and Maintenance at Vatva, Naroda, Odhav & BehrampuraJuly 2010

Report submitted in partial fulfillment of the requirements of the summer internship training undertaken for the MBA program

DECLARATION

We Manish Joshi & Mitali Thacker, hereby declare that this project, titled Management of Estates, Up-gradation of Infrastructure, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura is our own original work and not a plagiarized. The project is an outcome of our learnings during the two months period starting from 12th April 2010 to 7th July 2010 at Gujarat Industrial Development Corporation, Gandhinagar.

This project is made as an integral part of my curriculum and will not be shared with anyone; the usage of this project is only for academic purpose.

PLACE: Gandhinagar

DATE: 7th July 2010.

Manish Joshi

Mitali Thacker

Certificate

It is hereby certified that the work incorporated in the report entitled Management of Estates, Up-gradation of Infrastructure, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura submitted by Mr Manish Joshi & Miss Mitali Thacker, comprises the result of independent and original study carried out by them in partial fulfillment of the Summer Internship Training. The material which may have been obtained (and used) from other sources is duly acknowledged in the report.The work mentioned above is carried out under my guidance.

Date: 26\06\2010

Place: Ahmedabad

Signature of the Faculty Mentor

Prof. Jatin Christie Prof. Tejal Andharia

PREFACE

One of the most important characteristic of Gujarat Industrial Development Corporation (GIDC) is that it truly believes in a win-win business philosophy. With this in mind, GIDC has created 182 functional industrial estates spread all over Gujarat providing the entrepreneurs with industrial infrastructure which serves as a solid base for the natural outcome of growth.

We have heard the famous saying experience is the best teacher. On completion of this project we could really feel the depth of the meaning conveyed by the saying. As a student of MBA we have studied only theoretical portion in the classroom, but after taking up this project work, we have understood very well, the management practices experience in its fullest sense.

Professionalism of management is very necessary. Therefore industrial training is to make us more intelligent in the management of market. Moreover, such visit provides us an opportunity to interact with people who work in those units, and get some practical experience about their work and working condition.

The knowledge which we got at GIDC one of the largest government bodies in India, has given us sufficient knowledge to fill the gap between theoretical and practical knowledge. To read the story of a play and practically doing it has same difference that is between the study in the classroom and practically seen there. We had a chance of learning many practical approaches. We had a great opportunity to interact with different officers of different departments. We have learnt many aspects required to mould the personality of a management student which cant be studied by classroom study.

ACKNOWLEDGEMENT

We had one of the best times of our life undergoing training at Gujarat Industrial Development Corporation, Gandhinagar under the guidance of Mr. Ganesh Raman and Miss Deepti Maratha. This was very good experience throughout our entire academic career to work in a company and also a wonderful opportunity to apply all the learnings of the years of education we have taken to improve our performance.

We are thankful to Ahemdabad Education Society and our mentors Prof. Jatin Christie and Prof. Tejal Andharia and all other faculty members for the teaching we had received during the First year of my course, it has aided us in many manners for the internship. We are also highly indebted to Miss Harpreet and Human Matrix for their excellent support throughout our Internship Program and supporting us with the learning.

We also want to express my gratitude to the team of Gujarat Industrial Development Corporation for their co-operation and helping us with all our doubts.

EXECUTIVE SUMMARY

According to economic survey of India 2009-10, almost 60 % of Indian population is dependent upon agriculture for their employment. Which creates huge pressure on land. At the same time employment opportunity in Industrial sector in India, though increasing at steady rate, is not sufficient to provide employment to large section of the society. Planning commission of India has also emphasized the need of growth in Infrastructure sector, and here where the firm like GIDC comes into picture, which as Established Under GID act 1962, with a vision of accelerate the pace of industrialization in the State of Gujarat and Vatva , Naroda, Odhav were the few of the earliest estates build up not only in Gujarat but also in India, has a great learning opportunity to offer to GIDC, considering the fact learning from the past can help the firm to improve the future while dealing with the up-coming mega project like Dahej PCPIR (Petroleum, Chemical, Petrochemicals investment region )and Dholera SIR.(special investment region)

Under the project title, Management Estates,Up-gradation of Infrastructure, Study of Operations and Maintenance at Vatva,Naroda,Odhav &Behrampura, we were assigned the responsibility to identify the gaps in the practice followed by GIDC in the maintenance of these estates, suggesting the area of improvement for that we begin the our study by doing pilot study in these estates to define and understand the problem which was ambiguous in nature. Findings of the pilot study helped us to determine the best research design and suitable data collection method. For questionnaire based final study Our respondent were mainly Industries located at this estates. Additionally various persons-in-charge at association of the estates, field officers of the GIDC and even HODs of the various department at GIDC were consulted. Also secondary data from various sources and case studies were another source of the data collection.

Our findings suggest that 86 % of the respondent were satisfied with the quality of service delivered for power Supply, where as 56 % were satisfied with that of water supply. Majority of the respondent were not happy the design of the sheds, which confirms the decision take by GIDC not to build any Sheds in future. Parameter like Streetlight ,SWD, Roads and Security ,cleanings and encroachment need immediate attention. However our findings were not limited to number of respondent and their view, rather for each of the four estate we had tried to find the kind of problem and its root cause of the problem, for example problem of water theft , direct outcome of attitude of the industry was aggravated by the sluggish response from GIDC officials, where as, high encroachment is outcome of existence of multiple body like GIDC,AMC and respective association as care taking agency resulting in conflict of interest among them.

Benchmarking process of comparing absolute data of each estate among themselves (internal benchmarking ) and comparing it with the estate like TTC ( trans thane creek).Maharastra Industrial Development Corporation, was used to find out where does the level of service delivered by GIDC falls .Our findings in that category were not only encouraging ,but perhaps it can offer great learning potential to GIDC, such as negation of the earlier believe that deteriorating water distribution system at Vatva is function of old age, our finding suggest that this problem was the combination of a) the dependency of GIDC on the false data submitted by industrialist at time of application and b) ignorance of the projected future demand.

Lastly our efforts to benchmark current practice followed by GIDC ,with average Indian practice shows that in this regard GIDC is in better position compare to other Indian counterparts, not only that but few of GIDC standard are also world class , matching with the best practice in the world followed by various countries. However still GIDC needs to improve to match with other world class standards.

Table of contentsPartNumberParticularsPage number

A1. Company profile4

2. Porters five force16

3. Vatva Basic profile26

4. Naroda Basic profile30

5. Odhav Basic profile33

6. Behrampura basic profile36

7. Trans Thane Creek37

B8. Research methodology41

9. Vatva Pilot study & Analysis47

10. Naroda Pilot study & Analysis60

11. Odhav Pilot study & Analysis73

12. Behrampura Pilot study & Analysis83

13. Case study CETP and Khari canal92

14. Recommendations104

a.

C15. Benchmarking of the estates110

16. Benchmarking of each parameter114

17. Recommendations127

a.

18. Conclusion131

19. References132

20. Annexure133

The whole project is divided into 3 parts

PART A

Introduction to the company & description of the area of studies , that are Naroda, Vatva, Odhav , Behrampura and Trans Thane Creek.

PART B

Research methodology, findings and analysis for the studied estate.

PART C

Benchmarking of the estates.

PART A

INTRODUCTION TO THE COMPANY & DESCRIPTION OF THE AREA TO STUDIES.NARODA,VATVA ,ODHAV,BEHRAMPURA&TRANS THANE-CREEK

1. COMPANY PROFILEGUJARAT INDUSTRIAL DEVELOPMENT CORPORATION1.1Introduction to GIDC:

GIDC came into existence in 1962, under the Gujarat Industrial Development Act, 1962, with a vision of accelerate the pace of industrialization in the State of GujaratGIDC acquires private land, mainly through consent agreements, and purchases Government land for creating industrial estates. Provision of residential areas, public amenities and required commercial spaces is an integral part of estate planning. Within the estates, GIDC provides core and supporting infrastructure.GIDC is involved in development of: Industrial Estates Special Economic Zones Special Investment Regions Gujarat Industrial Development Act, 1962 ( Source* www.gidc.gov.in)Short title, extent and commencement:1.1. This Act may be called the Gujarat Industrial Development Act, 1962.2. It extends to the whole of the State of Gujarat.3. It shall come into force at once.

Definitions:2. In this Act, unless the context otherwise requires(a)"amenity" includes road, supply of water or electricity, street lighting, drainage, sewerage, conservancy and such other convenience as the State Government may, by notification in the Official Gazette, specify to be an amenity for the purposes of this Act;

(b)"building" means any structure or erection, or part of a structure or erection, which is intended to be used for residential, industrial, commercial or other purposes, whether in actual use or not;

(c)"Collector" means the Collector of a district, and includes any officer specially appointed by the State Government to perform the functions of a Collector under this Act;

3.[(ca)"commercial centre" in relation to any industrial area or industrial estate means any site selected by the State Government where the Corporation builds shop and other building and makes them available for any commercial activity,]

(d)"Corporation" means the Gujarat Industrial Development Corporation established under Section 3;

(e)"Development" with its grammatical variations, means the carrying out of building, engineering, quarrying or other operations in, on over or under land, or the making of any material change in any building land, and includes re-development, but does not include mining operations; and "to develop" shall be constructed accordingly;

(f)"engineering operations" include the formation of laying out of means of access to a road or the laying out of means of access to a road or the laying out of means of water supply;

(g)"Industrial area" means any area declared to be an industrial area by the State Government by notification in the Official Gazette, which is to be developed and where industries are to be accommodated;

(h)"Industrial Estate" means any site selected by the State Government, where the Corporation builds factories and other buildings and makes them available for industries or class of industries;

(i) "means of access" includes a road for any means of access, whether private or public, for vehicles or for pedestrians;

(j)"premises" means any land o building or part of a building and includes-

(i) the garden, grounds and out-houses, if any, appertaining to such building or part of a building; and(ii) any fittings affixed to such building or part of a building for the more beneficial enjoyment thereof;

(k)"prescribed" means prescribed by the rules made under this Act;

(l)"regulation" means regulation made under section 54;

(m)"relevant land acquisition law" means-

(i) in the Bombay area of the Kutch area of the State of Gujarat, the Land Acquisition Act 1894 as in those areas;(ii) in the Saurashtra area of the State of Gujarat, the Land Acquisition Act, 1894 as applied to that area; and(iii) the Gujarat Land Acquisition (Industrial Areas) Act 1961;

(n)the expression "land" and the expression "person interested" shall have the meanings respectively assigned to them in the relevant land acquisition law.

Establishment and incorporation:3.(1)For the purpose of securing and assisting in the rapid and orderly establishment, and organization of industries in industrial areas and industrial estates in the State of Gujarat 1[and for the purpose of establishing commercial centers in connection with the establishment and organization of such industries], there shall be established by the State Government by notification in the Official Gazette, a Corporation by the name of the Gujarat Industrial Development Corporation.

(2) The Corporation shall be a body corporate with perpetual succession and a common seal, and may sue and be sued in its corporate name, and shall be competent to acquire, hold and dispose of property, both movable and immovable, and to contract, and do all things necessary, for the purpose of this Act.

Constitution:4.(1)The Corporation shall consist of the following 2[twelve] 3[Directors], that is to say

(a) 4[Three] official 3[Directors], nominated by the State Government, of whom one shall be the Financial Adviser to the Corporation;

(b) one 5[Director] nominated by the State Electricity Board Constituted under the Electricity (Supply) Act, 1948;

(c) one 5[Director] nominated by the Gujarat Housing Board constituted under the Gujarat Housing Board Act, 1961;

(d) 6[six] 3[Directors] nominated by the State Government, from amongst persons appearing to it either to be qualified by reason experience of, and capability in, industry or trade or finance or to be suitable to represent the interest of persons engaged or employed therein ; and

(e) the 1[Managing Director] of the Corporation , ex-officio, who shall also be the secretary of the Corporation.

(2) The State Government shall appoint one of the 2[Directors] of the Corporation to be Chairman of the Corporation and may appoint one of the other 2[Directors] as Vice-Chairman.

______________________________________________________________________

Other part of GID act mainly deals with the how to carry out day to day activities of routine operation of GIDC,

1.2 Mandate and Functions of GIDCGIDC has been created for securing the orderly establishment and organization of industries in industrial areas and industrial estates in the state. To fulfill the above mandate, the Corporation has established 182 industrial estates, ranging from mini to mega sizes, in 25 of the 26 districts of the state. It is now establishing Special Investment Regions, PCPIR, Industrial Areas, Special Economic Zones, large/dedicated estates in tune with the changing economic and industrial scenario.

1.3 Vision:

To make GIDC an effective, vibrant and timely provider of quality industrial infrastructure with easy, quick and transparent delivery mechanism at competitive pricing and without losing sight of its social responsibilities.

1.4 Activities of GIDC

BTM model

GIDC function on ( build transfer and maintain )model , first they build industrial estates with basic infrastructure facility which is transferred to industries where they can start their business operations, at the same time post allotment GIDC also make sure that these industries get regular water, power and other basic infrastructure facility.

1.4.1Building the estate.

1) Feasibility survey :

Feasibility of proposed land site is checked, weather water would be available easily, terrain of land is suitable enough to build the estate, easy rail &/or road connectivity is there or not etc are accessed and verified. If land is found suitable then next step is to acquire the land.

2) Land Acquisition :

Next step to build any estate is to acquire the land. Gujarat has Really good track record as far as the land acquisition is concern, any majority of case , land is acquired by the mean of consent agreements, under which both the parties ( GIDC and land looser ) seat together to negotiate the price of the land. In most of the case its fruitful.

However if negotiation fails, GIDC can acquire the land by mean of land acquisition Act 1894, under which no farmers can deny land.

3) Building activities :

Next step is to built basic infrastructure facility which are of mainly 2 types core and supportive infrastructure.

Development of land includes providing core and supporting infrastructureCore InfrastructureSupporting Infrastructure

Developed Industrial Plots

Roads, SWD & Streetlight

Water Supply

Power Supply Network

Corridor for amenities gas, telecom, pipelines etc.

Effluent collection, conveyance, treatment & disposal Housing

Commercial Space

Space for public amenities hospitals, school, police station, post office, banks, community hall etc.

Skill Up-gradation Centers

Environment Conservation Initiatives green spaces, parks & gardens, solar energy

1.4.2 )Transfer of in-build plots to estates. ( allotment)ALLOTMENT

Estates are classified as saturated and regular.

In built Plots along with the facility of water supply, power supply, drainage etc is provided.

Land is allotted on lease for 99 years, renewable for another 99 years

Applicant has to pay 100% cost of the property within 30 days time from the date of receipt of Offer-cum-Allotment Letter (OcA) to have allotment in Saturated Estates

In small regular estates the applicant has to pay the down payment @ 30% of the total cost of the property within 30 days of the receipt of allotment letter. The remaining 70% is to be paid by 32 post dated cheques (PDCs) of quarterly installments with the prevailing rate of interest, which is 13% and subject to revision from time to time. Allotment Stages

Purchase of Application Form

Submission of Application with D.D. of Scrutiny Fee (Acknowledgement within 7 days)

Issuance of OCA (7 days for non-commercial & for chemical cases, on receipt of NOC from GPCB)

Agreement Execution along with down payment (30 days from date of OCA)

Possession Advice (within 3 days) Taking over of Physical Possession (20 days)

In the year 2006-07 GIDC has done the highest amount of land allotment,

See the annexure -6A bridge at Hajira port

1.5 Functioning of GIDCGIDC operates and maintains industrial estates in various districts of Gujarat State. These estates are self-contained sanctuaries capable of sustaining a large number of industries within themselves.Gujarat State is divided into "Districts" which are further sub-divided into "Talukas". All across the state, GIDC has planned for 252 Industrial Estates of which 182 are developed and functional.GIDC has remained abreast with the requirements of the time and has brought into existence industry specific estates like the electronics estate at Gandhinagar, ceramics estates near Bhavnagar, chemical estates at Vapi, Ankleshwar, Panoli, Jhagadia, Nandesari, Vatwa, Naroda, Odhav etc and a host of engineering estates spread all over Gujarat where the entrepreneur can have the advantage of being along with his fellow trade people and can be easily approachable by the visiting clients.

Streamlined procedures and customer-friendly approach has enabled GIDC to reach out to the smallest entrepreneur. GIDC has currently manpower of 1905 which includes professionals such as architects, civil engineers, town planners, Divisional accountants etc, Over the years, GIDC executives and professionals have developed expertise in the development of industrial estates/parks and provision of infrastructure such as designing and implementation of water/effluent lines, construction of roads, sheds and quarters etc

Gujarat Industrial Development Corporation (GIDC) truly believes in a win win business philosophy. With this in mind, GIDC has created 182 (as on may 2010) functional industrial estates spread all over Gujarat .GIDC functions for all practical purposes like a core corporate house. GIDC's estates are marked with a difference from the normal private estates/ areas in a way that over a passage of time; the conglomeration becomes a full - fledged industrial township.

1.6 Advantage of being inside the GIDC estate : GIDC land is for industrial purpose. So no need to waste time on getting Non-Agricultural./ N.O.C.

GIDC establishes its estates after verifying the viability and availability of water, power, linkages, communication, disposal of waste water etc. So the entrepreneur gets a really developed and planned area

GIDC estates are provided with required amenities like school, bank, post office, dispensary, police chowky, community garden, garden etc.

The chemical estates of GIDC are approved centre for chemical industries by Gujarat Pollution Control Board (GPCB)

All titles related to land/ building within GIDC estates are clear and free from any encumbrances and are easily marketable

An entrepreneur can start the industry by paying only 30 % of the total cost as down payment and can pay remaining amount in a period of 10 years.

GIDC provides ready to occupy sheds for immediately starting an industry and also provides godown for storage of its material

GIDC, being a Government organization, is transparent and fair in fixation of the prices of land/ building. The prices so fixed are approved by all financial institutions for quick approval of loans

GIDC also provides sites/ land for solid waste disposal and CETPs and effluent disposal pipeline for disposal of liquid effluent which can be collectively used by the entrepreneur

GIDC estates, one declared as Notified Area, are free from payment of local taxes and octroi. The Notified Area Tax payable in such area is only for maintenance and repairs purpose and is very reasonable

GIDC estate provides a unique opportunity to an entrepreneur to avail cluster benefits related to raw material, market, technology, common services, linkages etc.

Any up gradation program undertaken in GIDC estate provides direct advantage to all industries located therein.

Total GIDC Estate :- 182

Name of CircleNo.of.EstatesName of DivisionNo.of.Estates

Ahmedabad75Ahmedabad24

Mehsana22

Vadodara29

Bharuch18Bharuch13

Jhagadia02

Ankleshwar03

Surat18Surat09

Vapi09

Rajkot71Rajkot60

Bhuj11

Total182182

Industry Analysis :

Building the estate to provide in build plots to the industry is one of the unique kind of industry, which requires huge investment and government support as well. In India majority of the states have their own industrial development corporation which is promoted to ignite the growth of the state and country, by providing infrastructure support to industrialist.

For that corporation must need to acquire land which no private body can afford without government support. Because even if a few farmers refuse to provide the land whole project will become a huge failure, this is the main reason that in general there is not a single private player that operates in this field. So virtually we can say that there is no competition in the industry.

However In Gujarat there are few private players who operate in this industry such as mudra SEZ developed By Adani group. Mundra Port and Special Economic Zone Limited (MPSEZ), Indias largest private port and special economic zone, was incorporated asGujarat Adani Port Limited (GAPL)in 1998 to develop a private port at Mundra, on the west coast of India. The company commenced commercial operations in October 2001.Mundra Special Economic Zone Limited (MSEZ)was incorporated in November 2003, to set up an SEZ at Mundra. MSEZ was merged with GAPL in April 2006. The company was renamed as Mundra Port and Special Economic Zone Limited, to reflect the nature of business.

However one must have to keep a point in mind that this SEZ is fully supported legally by Government Of Gujarat, otherwise keep the question of competition per se aside no firm can survive to compete with GIDC without government support.

Finally GIDC it self is, though seating on huge financial surplus is not for profit organization. 1.7 Porter's five force model

It is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven down to zero.

1) The threat of the entry of new competitorsVery Low. Legally no other firm can possess the power to acquire land , so we can say that virtually there is no competition in the market

Reasons: Government policy of land acquisition which gives competitive advantage to GIDC

Entry barriers -Very high

Exit barriers- Very high as leaving from operation will result in huge sunk cost.

Investment required-Very high.

Learning curve advantage-high as GIDC is in operation since last 48 years .

2) The intensity of competitive rivalry

Low-Though Maharastra Industrial development corporation , few other SIDC (state industrial development corporation )can be competitor but all are separated by legal means and operate in various states, so no direct competition, other private players like Adani and Reliance can be competitor at smaller scale but they can not survive the competition from GIDC directly.

3) The threat of substitute products or services : Low Buyer propensity to substitute- Less

Relative price performance of substitute- Nil Buyer switching costs -Very High. Number of substitute products available in the market- there are enough players, if consider estates of other states, but people are move apprehensive after Singur incident.

Quality depreciation-very Low, with Dhahej PCPIR and Dholera SIR, rather quality of products are improving.

4) The bargaining power of customers (buyers) Low to moderate.The bargaining power of customers is also described as the market of outputs. The ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes.

Buyer concentration to firm-Very High

Bargaining leverage, particularly in industries with high fixed costs- Less Buyer volume -single and individual Buyer switching costs relative to firm switching costs- Very high Buyer information availability -Limited Availability of existing substitute products- Limited5) The bargaining power of suppliers : Low.All the following points mentions be love gives higher competitive advantage to GIDC

Supplier switching costs relative to firm switching costs - High

Impact of inputs on cost or differentiation- High

Presence of substitute inputs - Nil

Number of supplier-Many

1. The threat of the entry of new competitors

Very Low

2. The intensity of competitive rivalryLow

3. The threat of substitute products or servicesLow

4. The bargaining power of customers buyersLow to moderate

5. The bargaining power of suppliers

Low

Industry highly favors the incumbent.

1.8 SWOT Analysis of GIDCStrength 1) Government support : GIDC can legally acquire any part of land in Gujarat.2) Virtually No competition: As competitor does not have legal power to acquire land 3) Robust financial position of the firm

4) Learning curve advantages : GIDC is in Business since last 48 years.5) Co-operative land donors, ( Gujarat farmers has been most supportive in India, and as far as land acqisn is concern, Gujarat has very good track record

Weakness

1) Aging staff (Average age of employee is 51 ), which will retire at the age of 58 in a single stock, resulting in loss of Human Resources. New employee needs time to learn exhaustive technical aspect of firm.2) Hierarchical based organization, which may sometime hamper the progress of project due to longer time of moving files from one department to other.3) High waiting time for getting clearance for various projects.4) Strict government control over the financial aspect of the firm, as GIDC can not invest their surplus money without government permission.

Opportunity

1 ) Friendly Infrastructure investment policy Of Government of India as in For CIP , government of India also provides contribution to GIDC.2) High growth of real estate sector, price of land acquire by GIDC has been increasing very at faster rate3) Post shingur many firms are reluctant to invest in red zone areas. Others lost is ours opportunities4) Booming Indian Economy, and more and more entrepreneurs are coming to start a new business.

5) Dahej PCPIR and Dholera SIR are upcoming jewels, if implemented properly it may increase perceived vaule of firm

Threat

1) Infrastructure projects have high gestation period of more than 25 years or so, no bank will be interested to land money for such high payback period.2) Degree of losses in projects , in any, would be always high Eg,Surat Apparel park3) Though operation of GIDC has been more or less regulated by Gov of Guj, many aspects falls under concurrent list of Indian constitution, which can hamper the growth of GIDC 4) Traditionally record of Gujarat, for environment concern has been not very good,

So wrath of judicial system can affect the firm negatively.

1.9 McKinsey 7S FrameworkEnsuring that all parts of your organization work in harmonyDeveloped in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful.

The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for example to help you:

Improve the performance of a company.

Examine the likely effects of future changes within a company.

Align departments and processes during a merger or acquisition.

Determine how best to implement a proposed strategy.

The Seven Elements

The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements:

Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems.

"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful.

The way the model is presented in Figure 1 below depicts the interdependency of the elements and indicates how a change in one affects all the others.

Hard Elements1)Strategy 2)Structure 3)Systems

Soft Elements 4)Shared Values 5) Skill 6 ) style 7) staff.

Strategy: the plan devised to maintain and build competitive advantage over the competition.

Structure: the way the organization is structured and who reports to whom.

Systems: the daily activities and procedures that staff members engage in to get the job done.

Shared Values: called "super ordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic.

Style: the style of leadership adopted.

Staff: the employees and their general capabilities.

Skills: the actual skills and competencies of the employees working for the company.

1.9.1 Strategy: GIDC operates on BTM( build transfer and maintain )model , as in, first firm will build the estate which will be allotted to industry, post allotment GIDC also provides support for maintenance of the estate So GIDC is timely provider of quality industrial infrastructure with easy, quick and transparent delivery mechanism at competitive pricing 1.9.2 Structure

1.9.3 Systems: GIDC is such a huge organization that each departments has its own unique way for getting the work done. Acquisition of the new land is mainly done by Consent agreement ,where GIDC and land looser seats on table to negotiate the price. At the same time firm has very competence people at Engineering branch who are experts at building the estates. Post allotment management of estates are mainly done by either association or GIDC it self.

1.9.4 Shared Values: GIDC has very unique working environment, where employee celebrates each others success, gel with each other very well and have a common goal to take GIDC at higher level of excellence. Culture of the organization is such that their employees are always ready to adopt new idea ( for e.g. Summer Internship program , which GIDC adopted for the first time was embraced by their employees with open heart ) 1.9.5 Style: Honorable chairman Mr. Sahu and Honorable VC and MD Mr. Arvind Agraval as leader of the organization are visionary, who believe in the philosophy of Transformational leadership. Thinking out of the box is always welcome and every new ideas let it be concept of BOM or giving more responsibilities to association or starting a new initiatives like summer internship program is cherished. 1.9.6 Staff: . Very good human skill, with excellent communication skills who are very co- operative and always ready to help. Additionally staff is very loyal to the organization, as in, most of them are working with organization since more than 30 year so naturally long years of the experience has made them very competent who are capable of dealing with any new challenge. 1.9.7 Skills: Area of the operation of the firm is so vast that it demands various kind of technical skills at work, such as architectural skill, engineering principles, technical knowledge of water supply , power supply and environmental norms, financial concepts, geographical property of lands, legal knowledge to deal with various kind of regulatory authority etc. Looking at the growth of GIDC over the period of time one may conclude that, employee of the firms have embraced all these skill very well.

Up coming mega project where GIDC partially or fully involved.1) Dholera SIR

Total Area : 800 sq. kms: a green field location

Developable area: 500 sq. kms.

Economic activity area : 360 sq. kms

World-class infrastructure & connectivity: within & outside

Central spine express way & Metro Rail to link the SIR with mega cities

Airport & Sea Port in the vicinity

Proximity to mega cities: Ahmedabad, Bhavnagar, Vadodara

Benefit of sea coast, nature park, golf course

Premium civic amenities

Capable to cater to both International & Domestic Market

Close to Guajrat International Finance TechCity (GIFT)

Close to Petro-chemicals and Petroleum Inv. Region (PCPIR)

Logistic support of the Dedicated Freight Corridor (DMIC)

Benefits of the high impact Delhi Mumbai Industrial Corridor (DMIC)

Public investment in core infrastructure

2) Delhi Mumbai industrial freight.

TheDelhi-Mumbai Industrial Corridor Projectis a State-Sponsored Industrial Development Project of theGovernment of India. It is an ambitious project aimed at developing an Industrial Zone spanning across six states in India. The project will see major expansion of Infrastructure and Industry including industrial clusters andrail,road,port, air connectivity in the states along the route of the Corridor.The ambitious Delhi Mumbai Industrial Corridor (DMIC) has received major boost withIndiaandJapaninking an agreement to set up a project development fund.The initial size of the Fund will be Rs 1,000Crore(about $212 milion). Both the Japanese and Indian governments contribute equally.

The corridor would include six mega investment regions of 200 square kilometers each and will run through seven statesDelhi, WesternUttar Pradesh, SouthernHaryana, Eastern Rajasthan, EasternGujarat, Western Maharashtra and Madhya Pradesh.

1.10 VATVA

Introduction Vatva Industrial Estate, Ahmedabad, was set-up in the year 1968, when GIDC initialized the industrial Revolution of young Gujarat State. It is one of the oldest and largest estates in the state, spread over an area of more than 491 hectares, and having over 1800 industrial units in four phases

Satellite Image of Vatva Vatva Profile : Key Indicators

No.ParticularsActivity/Unit.

1) Set Up by GIDC1968

2) Area512 hectares

3) Phases4

4) Total Operating Units2200

5) Annual turnoverRs.2500 crores/year

6) ExportsRs.1500 Crores/ year

7) Total Employment80,000 People.

8) Road Length 42 kms.

9) Length of water supply line50 kms.

(Source : Vatva Industrial association, Directory 2001.10.1Additional Features of Vatva1)Connectivity Near By railways station,AMTS buses

2)Amnesties Police station, Post office, ESI hospital Telephone exchange.

3)USP85% of total units are of Tiny and SSI type.

4) Types of IndustriesPlastics, Light & heavy engineering, Machinery & components, Chemicals, Paints, pharmaceuticals, Foundries, Textile

5)Major players Nirma, Torrent, Intas, Solid, Mamta, Prashant, Dutron, Meghmani, Metrochem, Godrej, Parle, Aec

6)Prominent government institutesCIPET, National Leather Research Institute, National Standards Laboratory, Indo German Tool Room

7) Major Source of Income for government By :Octroi, property Tax, Sales Tax, Excise, Income Tax, etc

(Source : http://www.vatvaassociation.org/aboutvia.aspx)

Established in 1971 by just a handful of industrialists, the Vatva Industries Association is today the largest industrial association in any estate in Gujarat, with a membership close to 1200 units.

The association members are aware and fulfill their social responsibilities as well. The Vatva Industries Association Charitable Trust operates a polyclinic for benefit of workers & their families, and for public coming from far distances, at charitable rates. The Green Environment Co operative Services Society Ltd., an independent body promoted by the association, handles liquid effluents and solid waste from polluting industries for proper treatment and disposal.

The Vatva Industries Association has also promoted a Vatva Young Entrepreneurs Forum for new & second generation industrialists between 20 40 yrs. of age to train them and give them proper exposure of handling industrial units.

Common Effluent Treatment Plant at Vatva

The Vatva Industries Association organizes various programs and seminars on different topics aimed to provide our members information and training in various administrative and technical aspects of business. We also organize regular interactions with govt. officials and ministries.

Through visionary dreams and co-operative approach the Vatva Industries Association continuously strives to promote industries and become most active premium association in the state.

1.10.2 Classification of Industries

No.Types of Industry.Percentage.

1) Engineering Industries 30 %

2)Chemical & Allied Industries 32 %

3Plastic Industries5 %

4Pharmaceutical Industries5 %

5Textile Industries3 %

6Ice3 %

7Rubber & Package Industries 5 %

8Electronic , Electrical & Food Industries 4 %

9Cattle feed, Glass, Printers and stationers 2 %

10Packaged Drinking water, Wood, Stone & Cement industries.2 %

11Other4 %

(Source :VIA directory, 2008.)

1.11 NARODA

1.11.1 INTRODUCTIONNaroda is a suburban town in Bapunagar, northeast of Ahmedabad, Gujarat, India. With the establishment of the Naroda Industrial Area in the 1964, the town flourished; it was incorporated into Ahmedabad in 1996. Being eight km from Ahmedabad International Airport and located on the SP Ring Road, Naroda is situated on the emerging Gandhinagar-Ahmedabad-Vadodara (GAV) corrid

Particulars

Activity/Unit.

1 Set Up by GIDC1964

2 Establishment of NIA1968

3 Incorporated into AMC1996

4 Area337 ht

5 Units1700

1.11.2 IndustryThe Naroda GIDC industrial park hosts national and multinational corporations such as Reliance Industries Ltd, Pepsi Co, Ingersoll-Rand, Dresser Industries, Harshtaiana, Laxmi Engineers and various chemical and textile industries, including Arvind Mills, Umiya Textile and Nirman Textile. Pharmaceutical companies include Dishman[5], Tuton, Westcoast and Maccure. India's snack food manufacturer Samrat Namkin is located in Naroda.

Several major township projects are being developed along the Ahmedabad-Vadodara expressway with Naroda being at the center of the development. In the recent Vibrant Gujarat summit, 24 projects worth more than Rs 1,000 crore were slated to be developed in this part of city and along the Ahmedabad-Vadodara expressway. Projects include hospitals, clubs, educational institutions, NRI residential colonies, a business park and a 120-room hotel

1.11.3 NARODA IDUSTRIAL ASSOCIATIOS

1968Established

1994Tree Plantation & Beautification Project

1995NIA Hospital Charitable Trust

1996Common Effluent Treatment Plant

1996Solid Waste Landfill Site

1996Environmental Monitoring Committee(NEMC)

1997Naroda Industrial Co. Op. Bank Ltd.

1998Eco-Industrial Networking Research Project

2000Cleaner Production Center(CPC-N)

2001-2005Greentech Enviornment Excellence Award to Naroda Enviro Project Ltd. For service sector

2005Golden Peacock Enviornmental Management Award to Naroda Enviro Projects Ltd. For Cleaner Technology

2005MOU with AMC for infrastructure development for sharing Property Tax

2009MOU with GIDC for taking over water supply scheme

2009 MOU with GIDC for greening of estate. Planted 20,000 saplings & 4kms fencing

2009Won International Buisness Initative Directions(BID) Gold Award at New York by NEPL

2009Setting up training center at Naroda and center of excellence at TSDF Odhav by NEPL

1.12 ODHAV

Introduction

No.Particulars

Activity/Unit.

1) Set Up by GIDC1967-1968

2) Area127 hectares

3) Phases4

5) Total No. of sheds525

6)Road Length14 km

7)Length of water supply line14 km

8) Overhead Water Tanks2

Odhav GIDC is one of the oldest estate in the state spread over 127 hectares consisting for 525 Shades & over 1200 Industrial Units. Presently the Odhav Estate is part of Ahmedabad Municipal Corporation have many basic infrastructure facilities like Road, Sewerage, Water Supply Line, Telephone Exchange, Post Office, Canteens, Police Station, Fire Station etc. With the cooperation of GIDC, AMC, State Govt. & Central Govt., OIa work hard to get improved infrastructure of world class level.

Odhav has always been the foreground for growth of many large & medium national corporate but its real strength leys in its 85% SSI Units. The estate houses industries like Engineering, Dyes & Chemicals, Plastic, Machinery & Components, Pharmaceuticals, and Foundry

(Source : odhav Industrial association, Directory 2008-2009)

1.12.1 Additional Features of Odhav1)Connectivity Near By railways station

AMTS buses

2)Amnesties Road, Sewerage, Water Supply Line, Telephone Exchange, Post Office, Canteens, Police Station, Fire Station etc..

3)USPlarge & medium national corporate units but 85% of total units are of SSI type.

4) Types of IndustriesEngineering, Dyes & Chemicals, Plastic, Machinery & Components, Pharmaceuticals, and Foundry etc.

(Source : http://www.odhavssociation.org/aboutvia.aspx)

Odhav Industries Association ( OIA ) is one of the oldest & highly recognized Industrial Association among the Govt. Organization & industries. IA was established in 16-01-1981 by Late Shree Nanubhai Patel and many other renowned industrialist of Odhav with the prime objective of encouraging & spreading entrepreneurship attitude among the manufacturing sector, especially SSI.

Providing platform to the Industrialist for interaction with each other and make constructive and meaningful representations to the Govt. authorities, provide common platform to members & Government authorities for better implementation of Govt. rules & regulation & sustainable development of SSI are also additional objectives.

1.12.3 TYPE OF INDUSTRIES AT ODHAVNo.Types of Industry.Percentage.

1) Engineering Industries 37 %

2)Chemical & Allied Industries 28 %

3)Other Industries35 %

1.13 BEHRAMPURA

No.ParticularsUnit/content.

1. Name of the estateBehrampura

2. Year of establishment1971-72

3. Area< 2 Hectors.

4. Number of the units (plots)27

5. Number of operating units (As on june-2010)22

6. Water Supply managed byAMC

7. Types of industry.Animal bone based operation.

8. ConnectivityBRTS

Behrampura the one of the smallest estates of the GIDC, located at the Sabarmati bank , near Khodiar Nagar, has been in the operation since 1971. One of the distinct feature of this estates is that , industries located over here are not much dependent upon water or power supply as majority of them neither fall in the category of Engineering nor Chemical industry.

There were few Engineering industry at Behrampura during the early years of the operation , but majority of them left over the period time.

Other distinct feature of the estates is the smaller number of units operating over here. Which makes it costly and time consuming to look after various parameter of service delivery like water , power etc as in smaller the number lesser the economic of scale and higher the cost of operation.

1.13.1 TTC : ( Trans Thane Creek )

Introduction :

1) Established1963

2)Units3500

3)Mainly Engineering 45 to 47 %

4)Transportation BEST

5)Area2562 ht

Trans Thane Creek also TTC is a creek running between Thane and Navi Mumbai. It is popularly known as Thane- Belapur Road. It is a huge industrial area near Mumbai. The nearest hill stations are Matheran and Karjat. The study area Thane Creek, lies on the southern part of the Deccan belt of India between latitude 18531904 N and longitude 72487253 E and includes the Ulhas river estuaries.

Among the earliest Industrial Areas set up by the then fledgling Maharashtra Industrial Development Corporation in 1963, the 25 sq. km Trans-Thane Creek Industrial Area was at one time the largest contiguous Industrial Estate in Asia.

Bounded on the one side by the Thane-Belapur Road and on the other by the Mumbra Hills, the linear TTC area stretches from Mukand Ltd. right up to London Pilsner, with more than 3500 industries, small, medium and large in operation. There are around 1,600 members in SS

The NMMC ( Navi Mumbai Municipal corporation ) and TTC have been at loggerheads for some years now over the property tax issue. While TTC claims that as the units are part of the Maharashtra Industrial Development Corporation (MIDC) area, they cannot be subjugated to the municipal taxes, the NMMC claims that since the MIDC area falls in its jurisdiction the units are liable to pay taxes. The NMMC notice has created a panic among the industrialists in the TTC belt, most of them being small entrepreneurs. They are feeling vulnerable and have not yet been able to work out what stand they should take against the civic body's move.

Part BRESEARCH METHODOLOGY,FINDINDS & ANALYSIS AT NARODA,ODHAV, VATVA, BEHRAMPURA.2 .Introduction to the Project

2.1Title

Up-gradation, Operations and Maintenance of GIDC Estate.

2.1.1Title Description

Management of estates, up-gradation of infrastructure, study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura.

2.1.2Objective

To study the existing management practices & operations and maintenance of GIDC estate on primary infrastructure facilities in the areas of Vatva, Naroda,Odhav & Behrampura.

2.1.3 Scope

Understand the existing management practices of estates

To identify what are the major factors for up gradation, operations and maintenance of primary infrastructure in the estate

Collect information through primary and secondary data and suggest important points for improvement and development of Estates Provide the feasible solution of the problem

Also find the root cause of the problem, suggesting the action that leads to

Occurrence of such problem in future.

2.2 Research Methodology2.2.1Study Background GIDC came into existence in 1962, under the Gujarat Industrial Development Act, 1962, with a vision of accelerate the pace of industrialization in the State of Gujarat. Within few couple of years they established various estates like Naroda , Odav and Vatva which are currently few of the oldest estates in the country .

Our objective for the project Management of Estates, Up-gradation of Infrastructure, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura was to understand the maintenance practice followed by GIDC, in parameter like Water supply, Power Supply, Drainage, Effluent treatment, plots, Sheds, cleanliness , security, encroachment etc. along with providing the suggestion for the areas of improvement.

However , many of these infrastructure parameter (sheds, water supply, roads etc ) were established before few couple of decades and cynic may argue that, what one can learn from such establishment, rather only suggestion one could give is to change the existing system as in , not only GIDC per se, but Gujarat has taken the giant leap in last few decades, becoming the growth engine of the country. Dahej PCPIR and Dholera SIR are the up coming mega projects in the field of infrastructure. So question is why one need to study older estates which are technologically far less advanced, and may be could not use the modern technology, even if they want to, because they are limited by aging infrastructure

2.2.2 Need of the study

Organization, like an organism must keep learning and keep growing to cope up with the pace of the change. An organization can not improve its future without learning from past. Thus findings of this project can be learning exercise for GIDC in two ways.

1)Learning from current practice.It can directly lead to the improvement of management practice followed by GIDC, resulting in better maintenance of Naroda, Odhav, Vatva and Behrampura estates.

2) Learning from past to Improve futureFindings of the projects can help GIDC to analyze its shortcomings and mistakes they committed in the past at the time of establishment of these estates, which in returns may help GIDC to built up-coming projects and estates in better way.

2.2.3 Significance of the study

The following table shows that how these 4 estates collectively plays crucial role in not only revenue generation but providing employment to almost 2 to 3 lakh people (direct and indirect employment )

Apart from that, these estate also provide major junk of the export to the Gujarat.Daily turnover of all 4 estates is at 15 crore, which shows that how crucial these estate to the economy of Gujarat and India are.Significance of the estate to the economy .Name of the estatesProvides Employment to Approximately.Collective Annual turnover. ApproximatelyAnnual Export (approximately)

Odhav,

Naroda

Vatva

Behrampura1.5 lakh to 1.8 lakhRs .6000 to 7000 croreRs. 2000 to 3000 crore

(Source :Directory of respective association)

2.2.4 Study Domain

Business research

The systematic and objective process of gathering, recording and analyzing data for aid in making better business decision. It reduces the uncertainty by providing information that improves decision making.

How Business research can be Useful1) Identifying the problem or opportunity

2) Diagnosing and assessing problems or opportunity.

3) Selecting and implementing a course of action

4) Evaluating course of action. How business research is relevant in this project

The first step to solve any problem is to identify the problem with the proper diagnosis of the situation A wrongly define problem can result into erroneous findings.Problem Definition

The first and most crucial stage in research design determining the problem to be solved and objective of the research.

Various methods of problem diagnosis like pilot study , questionnaire base descriptive studies , case studies were the great help to us for defining not only the problem but also helping us to find the proper solutions of the problem.

For Example

While trying to find the reason at Vatva estate , why association is not able to use the ESR( elevated storage reservoir) for water supply, one may easily like to conclude that, almost 40 year old infrastructure of water distribution system is not able to withstand the high pressure generated by ESR. However it was not the real situation.Benchmarking is the one of the methods of the business research under which we compare absolute data with the standard. So when we compared water supply of Vatva with Naroda, we came to know that water distribution system at Naroda is also 40 year old , yet even today it is functioning very well, which lead us to very interesting question

Though water distributions system at both the estates ( Naroda and Vatva ) are in existence for the almost same number of years , why at one estate, association is not able to use ESR while at other estate, still ESR are functioning very well ?

These questions lead us to the very interesting finding of our project. However if we would have not used the proper methods of business research we would have ended up with erroneous conclusion that failure of ESR at vatva is the function tear and wear of long year of operation.

2.5.1 Methodology for Research:

The entire project was well monitored by GIDC. We had to do periodic reporting at GIDC. There was mid term appraisal at the end of one month., every Saturday we were provided in depth knowledge of various aspect of Infrastructure related projects at AMA by experts of the field. Even we were taken to the field visit of Surat, Sachin, Ankleshwar,Hajira,Vapi, Savli. And we had to give final presentation in front of of Honorable VC and MD, and HODs of the GIDC.Presenting our ideas in front of Honorable VC and MD, and HODs of the GIDC

2.6 Pilot Study at Vatva.

To conduct pilot study we randomly choose 40 industry out of total, 2200 Industry, to determine the best research design, data collection method and selection of subjects. All the questions were open ended.( Random Sampling )

We choose, various parameters like

Water Supply

Developed Industrial Plots and sheds

Roads,

SWD & Streetlight

Power Supply Network

Environmental Issues, Effluent collection, conveyance, treatment & disposal, solid waste.

On the basic of degree of satisfaction respondent were asked to rate the above mentioned parameters from 1 to 5 numerical scale.

Numerical scale

An attitude rating scale which uses numbers instead of verbal description as response option to identify the response position.

Highly satisfiedSomewhat satisfied Neutral Somewhat satisfied Highly dissatisfied.

5 4 3 2 1

Apart from that we asked respondent to specify the kind of problem he/she is facing in each parameter, if any. Considering the fact that, we were conducting exploratory survey, we did not provide the list of problems that we perceived to be exist; rather we just simply asked them to tell us the problem which they perceived to exist.1) Power Supply at Vatva estate.

Findings : 60 % out of the total respondent felt that they were highly satisfied with the power supply, and there was not a single respondent who was highly dissatisfied with the power supply.No.

Types of response.

Vatva Water Supply percentage of respondent

1

Highly dissatisfied

0%

2

Somewhat dissatisfied

6%

3

Neutral

8 %

4

Somewhat satisfied

26 %

5

Highly satisfied

60 %

Analysis : Power supply was not provided directly by GIDC rather it was managed by Torrent. Our findings suggest that delivery of service level for power supply is par excellence. 2)Water Supply Vatva :

Findings . Total 50 % (as in, 18 % were highly satisfied and 32 % somewhat ) satisfied with the service level delivered for this parameterNo.

Types of response.

Percentage of Respondent

1

Highly dissatisfied

14 %

2

Somewhat dissatisfied

8 %

3

Neutral

28 %

4

Somewhat satisfied

32 %

5

Highly satisfied

18 %

Analysis : Basically Vatva is a chemical estate , where majority of industries are water dependent, high level of satisfaction shows that quality of service delivered for this parameter is good ( Subsequently we found out that , credit for this goes to regular timely water supply , which was cheapest among all the studied estate.) There were few industry which were satisfied with water supply even though it was not provided regularly in that particular area, when we asked for the reason they told us that, they hardly need water for industrial usage, which made us realize that all industries are not equally affected by/ sensitive to all parameters equally.3) Environmental Issues

CETP set up by The Green Environment Co-operative Services Society Ltd., which was promoted by the Vatva Industries Association, the treatment facility benefit over 600 polluting units by collecting their Primarily treated liquid effluent and giving it secondary treatment and proper disposal. A hi-tech internal collection system followed by technologically advanced treatment plant is capable of handling 1.6 crore liters of effluent per day. The total investment made by the industries is Rs. 38 croreEnvironmental Norms at Vatva :No.

Types of response.

Percentage of Respondent

1

Highly dissatisfied

2%

2

Somewhat dissatisfied

15%

3

Neutral

28%

4

Somewhat satisfied

25%

5

Highly satisfied

30%

Findings from the subsequent research shows that, these industries were the main culprit for polluting Kharicut canal.

Findings and analysis :

Most industries, in general consider environmental norms antagonist to their business, so we can infer, high degree of satisfaction represents fact that environmental norms were not strict at all.4)Roads, SWD & Streetlight No.

Types of response.

Percentage of Respondent

1

Highly satisfied

12 %

2

Somewhat satisfied

22 %

3

Neutral

30 %

4

Somewhat dissatisfied

20 %

5

Highly dissatisfied

16 %

Findings There were 34 % of respondent who were happy with the service delivered for this parameter.Analysis: There is enough scope for the improvement in this case. In entire estate there were many streetlights which were not in working condition. There is problem for SWD for which the work of CIP is under progress.

5) Securities , Cleaning , Encroachment

Findings : There were 42 % of the respondent who either somewhat dissatisfied (22%) or highly dissatisfied (20%) with the quality of service delivered for this parameter.No.

Types of response.

Percentage of Respondent

1

Highly dissatisfied

20 %

2

Somewhat dissatisfied

22 %

3

Neutral

30 %

4

Somewhat satisfied

6 %

5

Highly satisfied

22 %

Analysis : There were few respondent who felt that their woman employees working here were vulnerable and unsecured . Indeed we also came across a case where one of the respondent told us that their petrol had been stolen from the tanker. Sub Sequent findings suggests that The problem of encroachment was less seen here in comparison to other estates6) Plots and Sheds :

No.

Types of response.

Percentage of Respondent

1

Highly dissatisfied

6 %

2

Somewhat dissatisfied

16 %

3

Neutral

40 %

4

Somewhat satisfied

28 %

5

Highly satisfied

10 %

Over the period of time GIDC has quit the practicing of building sheds, as now they are just providing plots, giving freedom to industries to build their sheds in preferable design.

Findings and Analysis : People have mixed view for this parameter, they were neither very satisfied nor very unsatisfied with this parameter as 40 % were neutral. Majority of Respondent were felt that they got land at reasonably better prices , however they were little bit dissatisfied with the kind of shed design . Analysis of the Pilot Study : Above mentioned parameters were classified in 3 category 1) Competitive 2) Needs improvement 3) Under developed, depending upon the types of level of satisfaction, as shown in the table on next page.

Level of satisfaction = Percentage of respondent who were either somewhat or highly satisfied with the quality of service delivered for that parameter.

Environmental issues were taken as needs improvement category from the subsequent finding of kharicut canal case study and even, satisfaction level of industry cannot and should not be taken as symbol good service provided.

ParameterLevel of satisfactionCategory

1Power Supply100 < N < 66Competitive

2Water supply66 < N < 33Needs improvement

3Environmental norms66 < N < 33Needs improvement

4Roads, SWD & Streetlight 33 < N < 0Under developed

5Securities , Cleaning , Encroachment33 < N < 0Under developed

Findings of the pilot Study :

Power supply is competitive and as GIDC does not play any direct role ,that parameter doesnt require much attention.All industries are not equally affected by and sensitive to all the parameters equally. Rather chemical based industry are more dependent upon water and CETP norm affect them most.

Where as Water supply is not much concern for engineering type of industry rather they need regular power supply. For other parameters all the firm were equally sensitive, and As far as the environmental norm is concern , we can not rely much upon the data provided by industry.

Questionnaire base descriptive survey :

All the industries were classified in 3 different category 1) chemical and allied industry 2) Engineering industry 3) Other type of industry, for the purpose of stratified random sampling.

2.6.2 CATEGORY WISE DESCRIPTION

Category A) Chemical and Allied Industry ,Parameter Water supply

Sample Size 42 Sampling method : Stratified sampling. ( 6% of strata )No.

Category

Types

1

Number of industries

2200

2

Chemical Industry.

704

3

6 % of chemical industry.

42

A) Water requirement is a) Only for domestic usage b) Domestic and Industrial usage both.

Findings and Analysis : 100 % respondent were using water for both industrial purpose and domestic purpose in the category of ( water dependent ) chemical industry. This question was asked for error proofing.B) Cost of water procurement as percent of total cost of production.Category Percentage of respondent

>15 %

0

10 to 15 %

0

5 to 10 %

4

N > 66 %66 > N >33 %33 > N > 0%

Problem diagnosis chart:

All the parameters described above are categorized into following three parameters & the coloured chart showing the areas of improvement can be shown as

Competitive- Needs improvement-

Underdevloped-

2.10 CASE STUDY

Common Effluent treatment plants (CETP) and environmental norms and kharicut canalSummary:

Findings of our survey in the category was not only confusing but also misleading, as it does not represents the true picture at environmental front. While conducting the survey we realized that, we have been victims of deliberate falsification error, which were leading us towards erroneous conclusion, so we decided to stop the survey in mid way, rather to get the real situation, we decided to approach GPCP.

Deliberate falsification

A type of business research error in which respondent deliberately provides false data to mislead the process of business research.

However there were reluctant to provide any data directly to us. So we decide to use the RTI act to get the real information, at the same time we also tried to contact various NGOs and environmental activist, which resulted in findings of the documents, which was released to the press, just one day before the World environment day by Paryavaran samiti .The content of that press release was horrifying and unbelievable, as in even after the establishment of CEPT, the COD level of effluent discharged in the Sabarmati river was almost 1000 % of the prescribed norms of GPCP

See Annexure -7,(Source : Parvavaran Samiti ,Press Realease on 4th june 2010. Under RTI act from GPCB.)

2.10.1 Background :Ahmedabad city was once known as the Manchester of India because it had the highest number of textile mills in the country. This gave rise to a large number of small- and

medium-scale dye manufacturing units - most of them are located in industrial estates promoted by the government of Gujarat through the Gujarat Industrial Development Corporation(GIDC).

Four such areas are : Naroda,Odhav, Vatva and Narol on the eastern periphery of Ahmedabad city, where environmental considerations were overlooked and no provision was made for the safe disposal of industrial effluents. Most of the factories in the industrial estates are water intensive and all of them discharge effluents into the nearby Kharicut canal, which flows into the Khari river, a tributary of the Sabarmati. As the canal remains dry throughout the year, the government ignored its (mis)use.

Reverse boring :

To avoid the wrath of the system, industries were unable to throw the effluent directly into open area, which resulted even in worst outcome, as of lately, they started directly dumping the effluent into water bores at their plot. According to Green peace report ground water at Vatva has been contaminated up to 183 meters

Common effluent treatment plants(CETPs) were set up in all three industrial estates after the Gujarat High Court passed orders that they be set up. The CETPs are designed to treat effluent to meet standards related to pH, suspended solids (SS), oil and grease, chemical oxygen demand (COD) and biological oxygen demand (BOD) but they are not designed to meet standards related to total dissolved solids (TDS) and heavy metals. Nevertheless they are useful because the member industries who also run these CETPs can no longer shrug off their responsibility towards a cleaner environment.

When river becomes effluent Canal .

Total 110 villages are situated at the downstream of Khari- river, where almost 5 lakh people are forced to drink polluted water. Many cases of skin- disease, stomach problem, intestinal and bronchial ailments has been found. Due to chronic health problem marriage proposal at Gamdi village has reduced significantly.

CASE STUDY KHARI RIVER

Khari river originates from the hills near Nandol, 20 km east of Gandhinagar,Bordering Ahmedabad district. This first order river joins the Meshwo river, atributary of the Sabarmati near Vautha on the border of Kheda district. MeshwoMeets the Sabarmati at Kheda 50 km down the route. The 80 km Kharicut canal that begins from Raipur village was constructed more than 100 years ago during the British period for the purpose of providing irrigation support to 10,200 ha in 110 villagesspread over 80 km in Daskroi taluka of Ahmedabad district and Mahemdavadtaluka of Kheda district. Today, a total of about five lakh people are affected by air and groundwater pollution as are thousands of hectacres of agricultural land.

In spite of the CETPs the problem has not been completely resolved. Further, theKhari river and canal have now become a bone of contention between the industries and the farming community, in particular those who live on the banks.

Owing to the absence of adequate and appropriate drainage systems in these three industrial estates some of their suburbs let out sewage into the Kharicut canal. While Naroda and Odhav estates manage to dispose off their sewage throughsoak pits, pipes connected to CETP or nearby AMC drainage pipes meant for Domestic sewage, the Vatva industrial estate has an acute problem because of the absence of a sewage disposal network system. For more than two decades now peoplein this belt have been suffering from land and water pollution. Health-related problems include skin diseases, stomach and intestinal ailments and bronchial problems. The strong stench emanating from the polluted water makes it even worse. Groundwater contamination resulting from the illegal release of untreated effluents into the river during the night or direct injection into tube wells is another serious problem. During 2002-03, when the 183 m deep bore wells started yielding contaminated water, the panchayats of Chosar,Gamdi, Devdi, Ropda and Vinzol drilled 250 m bore wells, which also soon startedyielding colour water. People are forced to drink this polluted water in the absence of an alternative source. Many families walk long distances to fetch comparatively better quality water from farm tube wells. Livestock casualties and reduction in milk yield have adversely affected the village economy, since supplementary income is now denied the to the families.

2.10.5 Chronology of the Events :

No.Year Events

1. 1978:

People from the affected villages start representing their problems to the government.

2. 1988-89:A group of villagers filed a

Petition in the Gujarat High Court seeking intervention.

3. 1995Two persons from Navagam, Matar

taluka, district Kheda filed a Public

Interest Litigation (PIL) in the high court

(Special Civil Application No 770 of 1995)

against government inaction.

4. 1995:The Gujarat High Court delivered

a landmark judgment, Polluter Pays,

that says: Since for the last number of

years pollution has adversely affected the

11 Kalambandhi villages of Kheda, as also

villages of Lali, Navagam, Bidaj, Sarsa,

Aslali, Jetalpur, Bareja, Vinzol and Vatva

comprised in Dascroi and Mahemdavad

talukas, a lump sum payment should be

made by the 756 industrial units, calculated

at the rate of 1 per cent of their

one years gross turnover for the year

1993-94 or 1994-95, whichever is more

and that amount should be kept apart by

the ministry of environment and should

be utilised for the works of socio-economic

uplift of the aforesaid villages and

for the betterment of educational, medical,

and veterinary facilities and the betterment

of the agriculture and livestock in the said

villages .

5. 1998: Most of the factories that had been

shut down were allowed to reopen after

they commissioned primary treatment

plants and gave written assurance to the

court that they would take the responsibility

for secondary treatment either on

their own or through the CETP.

6. 1999: By the end of the year all the three

industrial estates had CETPs to take

care of secondary treatment for small

Industries. These are concerns that use less

than 25 kilolitres of water per day. Water

intensive industries that consume more

than 25 kilolitres of water per day also

established their own secondary treatment

plants.

7. 2000: During 2000-01, the AMC laid a mega pipeline with a pro rata contribution from industries. The mega pipe mainly

conveys treated industrial effluents from all three GIDC estates; it The treated effluent is being discharged into the

Sabarmati at Pirana where AMC also discharges sewage after secondary treatment. This treated sewage also dilutes the industrial effluent being discharged into the Sabarmati.

8. 2002: The government widened and lined

the canal to carry more rain water to avoid

flooding; the state also revived it as a live

canal by diverting Narmada water through

it.

9. 2004:A fresh PIL under SCA No 4690

of 2004 was filed by the villagers seeking

high court intervention for appropriate

Utilization of the fund.

10. November 2004:The government of

Gujarat constituted a high power committee,

under the chairperson of the chief

secretary, specifically to address the problem

of the Khari river and canal pollution.

2.10.6 Common Effluent Treatment Plants in Gujarat

Most of the CETPs in Gujarat were non-compliant to prescribed normsMainly due to various shortfalls occurred right from designing stage to operational stage ofCETPs. Few of them are discussed below.

2.10.7 Shortfall in Design and Construction Part:

Influent characteristics and hydraulic load are not representative of actual design criteria. Forexample, in Vapi, Gujarat the design concentration of influent COD is 1000mg/l but actual Influent concentration of COD is more than 3000mg/l. This has happened mainly due to Improper database, industries were not responsive in database preparation at design stage of CETP.

Also frequent change of product particularly in small-scale sector is another serious problem in maintaining influent characteristics as per design criteria of CETP. Similar trend is observed in case of other CETPs too.

Many important parameters like NH3 N, Phenol and other toxicants including heavy metals were not included into the design aspects of CETP, resulting in improper treatment and non compliance of prescribed norms. Toxic effluents some time destroy whole biomass of CETP.

Most of the CETPs particularly in Gujarat were commissioned within a short period of time without conducting proper treatability study of influent. It is indeed another major shortfall in designing a proper and effective CETP.

Modular design of ETP is an important concept in proper handling of variable hydraulic load. Unfortunately, except in few CETPs, no CETP has modular arrangement. Due to absence of adequate equalization capacity and guard pond, CETPs are not able to contain shock load. To avoid such shock load CETPs are forced to bypass its effluent without any treatment. However, many CETPs off late either augmenting their existing equalization tank or commissioning additional equalization tank to handle shock load.

2.10.8 Shortfall in operation & Maintenance partDue to improper operation of CETPs by unskilled or semiskilled operator, flooding of clarifiers, irregular removal of sludge from clarifiers, improper level of MLVSS in aeration tank, overloading of sludge drying beds etc are the common phenomenon in CETPS. Entire system sometimes gets halt because of such poor maintenance.

Performance of CETP Vatva, Ahmedabad (Source CPCB )Date of MonitoringLocationsParameters

pHTSSTDSCODBODNH-3-NO&GPhenol

27/01/2010Inlet6.40550207393696994134----

Outlet7.48839161412189367190267.25

Performance of CETP M/s, GVMSAVL, Odhav, Ahmedabd ( Source CPCB)Date of MonitoringLocationsParameters

pHTSSTDSCODBODNH-3-NO&GPhenol

28/01/2010Inlet6.1835551024334471500370--4.63

Outlet7.2788869287315280012605.44.13

Performance of CETP M/s, NEPL, Naroda, Ahmedabad

Date of MonitoringLocationsParameters

pHTSSTDSCODBODNH-3 NO&GPhenol

28/01/2010Inlet7.272133623501277818561042--28.75

Outlet7.161641197124715841908.21.62

2.11RECOMMENDATIONS FOR CETP

(Source: Abstract from the report of Central Pollution Control Board on Performance Status Of Common Effluent Treatment Plants in India,October2005)

1) In general, the performance of CETPs has been found to be very unsatisfactory, largely because of poor operation and maintenance. Therefore, the State Pollution Control Boards should conduct regular monitoring of CETPs and persuade them to ensure proper operation and maintenance failing which they should initiate action against negligent agencies and willful defaulters.

2 )Achieving standards for treated effluent quality from CETPs is dependent on meeting the designed criteria of inlet quality to the CETPs that inter alia depends on effluent quality from each industry. The State Pollution Control Boards are required to prescribe standards for discharge effluent to CETP from each industry and enforce the same.

3 )Optimization of neutralizing/coagulating chemicals is very important for deriving maximum benefits from primary treatment units based on hysic-chemical treatment, minimizing Sludge production and reducing pollutants load on subsequent biological treatment units. Jar tests should be conducted on daily basis to decide type of coagulant and their dozing.

4) CETP operating agencies should engage experts to advice them from time to time for proper operation and maintenance of CETP besides employing skilled manpower.

5 )High TDS in the raw influent reaching CETPs and, as a result, in treated effluent of CETPs is a major cause of concern, more so because it is generally caused by high salinity which requires costly treatments such as Reverse Osmosis (RO) and Nano Filtration Systems followed by Multi Stage evaporator systems (MSES). Area specific thoughtful approach is required to tackle this problem. First attempt should be reduction in release of TDS Contributing chemicals from problem industries by adopting cleaner production technologies and recovery and recycling of chemicals from the waste streams. Second option should be treatment of waste stream for TDS at the level of individual industry. Treatment of TDS at the CETP should be the last option unless some special conditions demand so. State Pollution Control Boards should investigate all the TDS related problem areas and compel the industries/CETPs for its solution.

6 )The State Pollution Control Boards may consider prescribing location specific regulations for the control of TDS at the industry level. Setting time limits in future for compliance of new regulations, compliance of which requires significant investment, is an industry-friendly and effective approach. The same approach is suggested for prescribing location specific regulations for the control of TDS at the industry level.

7 )Capability and limitations of filter unit in a wastewater treatment scheme, , must be kept in mind while using these units wherever they exist in CETPs

8 )Capability and limitations of activated carbon bed, as explained must be considered while including it as a terminal treatment unit in wastewater treatment. In treatment schemes that already include activated carbon bed as terminal treatment unit, the dependence on this unit should be based accordingly.

9 )Operation of treatment units based on biological treatment (Activated Sludge Process) is sensitive and requires understanding of important controlling parameters. Use of Solid Retention Time (SRT), the ratio of solids in the system and solids wasted per day, as controlling parameter is recommended because it is most simple and treatment efficiency, sludge production, oxygen requirements and nutrients requirements are dependent on SRT.

10) Collection of wastewater from individual industries through tankers is not a foolproof system and should be discouraged in new areas and reviewed and rectified in old ones by the2.11 Findings of the survey & Recommendation.And conclusion.

FOR THE IMPROVEMENT OF CURRENT SITUATION AT STUDIED ESTATE

A) Vatva specific problem :Water Supply ( mainly For chemical and allied industry )

VIA has taken the responsibility of water supply from GIDC, which is doing a good job. However they are not able to use any ESR as the 40 year old pipe lines are not able to withstand the pressure generate by ESR, resulting in high electricity bills. ( However this findings were erroneous which we came to know only after benchmarking of the estate while trying to compare Vatva and Naroda )

From VIA we also came to know that non of the industry are using in build storage water capacity ( which is advisable under GIDC regulation , that was the reason that industries were reluctant to share any data regarding this) , Though currently water is available for 16 to 18 hour, in future if system fails industry are at risk of running out of water.

( See Annexure-2 )

Reverse boring :

It is the practice by which industries directly dump their effluent deep into water bore, which was very common practice before the establishment of CETP. Though this problem has been almost solved now, there is no reason to doubt the fact they few of the industry still might be practicing it. Water level at Vatva has been polluted upto 183* meters, so GIDC should make sure that no industry follows such practice in future.

Source :Toxic Hotspots: A Greenpeace Investigation of Gujarat Industrial Estates (1999)http://www.greenpeace.org/raw/content/india/press/reports/bahut-ho-gaya-a-briefing-pap.pdfB) Findings of the survey and problem identified at Naroda :

Water Supply :

1) Water is available only for 4 to 6 hour which creates huge pressure on industry.At Odhav water is available for 10 hour where as at Vatva is available for 16 hour , so we can say that NIA needs to provide water for more number of hours.

2) Cost of water is Rs 17 / kilo liter which is reasonably high for an estate where almost 30 % industry are water dependent chemical industry.

3) Many of the industry are following the practice of water procurement by mean of tanker which cost them around 30,000 to 50,000 per month. Indeed off the record few of the firm told us that they are considering to move out of Naroda due to water related problem.

Environment Norms :

Here at Naroda we observed that all the industries are not connected to CETP by pipelines , rather many of them were discarding effluent to CETP plant with the help of Tanker , which according GPCB norm is not a good practice.

Encroachment

This is severe problem as far as Naroda is concern, and many of the industries after repeated complaining it to authority have came to realize that nothing will change, so they are least hopeful in this case which is not a good sign.

C) Findings of the survey and problem identified at Odhav :

Streetlights at old L shape area is not working since last few months, which has resulted in encouragement of many illegal activities at night , even incident of theft has been increased in the area,

Other problems which were identical to other estate are discussed later.

D) Findings of the survey and problem identified at Behrampura :

Problem identified

1) High degree of encroachment ( plot number 2 was looking like a slum).

2) Unhygienic environment.

3) Atmosphere was not suitable to carry any form of business.

4) Street lights were in pathetic condition.

5) No SWD exist

6) Theft was not uncommon phenomena here.

7) Authority has no interest what so ever, to improve the current state of this estate.

8) Lack of proper planning at the time of establishment of the estate.

Suggested Solution

For a problem like this no quick fix solution exist, as its a catch22 situation for GIDC, rather one could see that those industries operating there have no expectation from GIDC, and in general those who find such environment convenient to specific kind of business are happy with such stagnancy and those who disliked it, have already vacant the place. At the same time, somehow GIDC official are reluctant to take any corrective measures to remove the encroachment by any mean, let it be approaching to AMC or High court.

So we believe that common approach like 1) Investing in infrastructure2)Promise of delivering the better service will not work until and unless the main problem (encroachment is solved ) here.

Learning from the case for GIDC from Behrampura

1) GIDC should avoid building estates with such a small number of units in future,

2) Rather GIDC should determine the minimum number of units

( read Plots) , at the time of building the estate to avoid such embarrassing position in future.

Suggested Solution for the problem which were commonly indentified at the all 4 studied estate.2.11.1 Water Supply.

Problem Identified Suggested Solutions

1) Under utilization of system.

2) Depletion of ground water level.

3) Distribution and leakage l