Project Report GIDC

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 & Behrampura
Gujarat Industrial Development Corporation
By Manish Joshi (B- 18) Mitali Thacker (A-55)

Faculty Guide Prof. Tejal Andharia Prof. Jatin Cristie Company Guide Mr.Ganesh Raman Ms. Dipti Maratha
MBA Program Amrut Mody School of Management
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Project Report on Management of Estates, Up-gradation of Infrastructure, Study of Operations and Maintenance at Vatva, Naroda, Odhav & Behrampura
July 2010
Report submitted in partial fulfillment of the requirements of the summer internship training undertaken for the MBA program
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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 12 th 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
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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 Andharia Prof. Tejal
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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.
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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.
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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 investment region) Under the project title, Management Estates,Up-gradation of Infrastructure, Study of Operations and Maintenance at Vatva,Naroda,Odhav of these estates, &Behrampura, we were assigned the responsibility to identify the gaps in the practice followed by GIDC in the maintenance 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 located at this estates. Additionally suitable data collection method. various persons-in-charge at For questionnaire based final study Our respondent were mainly Industries association of the estates, field officers of the GIDC and even HODs of the various department at GIDC were consulted. Also secondary data from region )and Dholera SIR.(special
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various collection.
sources and case studies were another source of the data
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
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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.
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Table of contents
Part Number Particulars Company profile Porters five force Vatva Basic profile Naroda Basic profile Odhav Basic profile Behrampura basic profile Trans Thane Creek Page number 4 16 26 30 33 36 37
1. 2. 3. 4.
A
5. 6. 7.
8. 9. 10.
B
Research methodology Vatva Pilot study & Analysis Naroda Pilot study & Analysis Odhav Pilot study & Analysis Behrampura Pilot study & Analysis Case study CETP and Khari canal Recommendations
41 47 60 73 83 92 104
11. 12. 13. 14. a. 15.
Benchmarking of the estates Benchmarking of each parameter Recommendations
110 114 127
16. 17.
a. 18. 19. 20.

Conclusion References Annexure 131 132 133
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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.
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PART A
INTRODUCTION TO THE COMPANY & DESCRIPTION OF THE AREA TO STUDIES. NARODA,VATVA ,ODHAV,BEHRAMPURA&TRANS THANE-CREEK
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1. COMPANY PROFILE
GUJARAT INDUSTRIAL DEVELOPMENT CORPORATION
1.1Introduction 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 Gujarat GIDC 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
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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 Corporation established under Section 3; Industrial Development
(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
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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
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(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 GIDC GIDC 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
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mechanism at competitive pricing and without losing sight of its social responsibilities. 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 Activities of GIDC
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
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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.
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Development of land includes supporting infrastructure
providing
core
and
Core Infrastructure
Supporting Infrastructure

Developed Plots
Industrial &
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
Roads, SWD Streetlight Water Supply
Power Supply Network Corridor for amenities gas, telecom, pipelines etc. Effluent collection, conveyance, treatment & disposal

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
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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.
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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 -6
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A bridge at Hajira port
GIDC - Industrial Estates and Clusters
Bio-Tech cluster Gujarat International Finance-Tec City Knowledge corridor Industrial corridor (DMIC) Savli Biotech Park Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) Chemicals, petrochem. pharma, textiles and engineering Special Investment Region (SIR)
60 special economic zones (SEZs) across Gujarat 202 industrial estates across Gujarat
Soda ash and saltbased industries, cement and steel pipes 182 industrial estates across Gujarat Petroleum and brass parts Engineering and ceramics Soda ash and salt based 18 Captive Ports along 1600 km coastline across Gujarat
To Bombay
60 special economic zones (SEZs) across Gujarat
Balanced Development and Common Infrastructure Planning & Sharing

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Gujarat Industrial Development Corporation
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1.5 Functioning of GIDC GIDC 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 subdivided 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.
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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
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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.
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Total GIDC Estate :- 182 Name of Circle No.of.Estates Name of Division Ahmedabad Mehsana Vadodara Bharuch Bharuch 18 Jhagadia Ankleshwar Surat Rajkot Total 18 71 182 Surat Vapi Rajkot Bhuj No.of.Estates 24 22 29 13 02 03 09 09 60 11 182
Ahmedaba 75 d
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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 as Gujarat 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.
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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 competitors Very 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
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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.
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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- Limited
5) 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 The threat of the entry of new competitors The The The intensity rivalry of competitive Very Low
1.
2. 3. 4.
Low Low Low to moderate
threat of substitute products or services bargaining power customers buyers of
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5.
The
bargaining suppliers
power
of
Low
Industry highly favors the incumbent.
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1.8 SWOT Analysis of GIDC
Strength
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.
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.
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
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 rate 3) Post shingur many firms are reluctant to invest in red zone areas. Others lost is ours opportunities 4) Booming Indian Economy, and more and more entrepreneurs are coming to start a new business.
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 park 3) 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
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5) Dahej PCPIR and Dholera SIR are upcoming jewels, if implemented properly it may increase perceived vaule of firm
been not very good, So wrath of judicial system can affect the firm negatively.
1.9 McKinsey 7S Framework

Ensuring that all parts of your organization work in harmony
Developed 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 acquisition. and processes during a merger or
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;
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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.
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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.
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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
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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 )
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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.
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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
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2) Delhi Mumbai industrial freight.
The Delhi-Mumbai Industrial Corridor Project is a StateSponsored Industrial Development Project of the Government 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 and rail, road, port, air connectivity in the states along the route of the Corridor.The ambitious Delhi Mumbai Industrial Corridor (DMIC) has received major boost with India and Japan inking an agreement to set up a project development fund.The initial size of the Fund will be Rs 1,000 Crore (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 states Delhi, Western Uttar Pradesh, Southern Haryana,
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Eastern Rajasthan, Eastern Gujarat, Western Maharashtra and Madhya Pradesh.
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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 Particulars .
1) 2) 3) 4) 5) 6) 7) 8) 9) Set Up by GIDC Area Phases Total Operating Units Annual turnover Exports Total Employment Road Length
Activity/Unit.
1968 512 hectares 4 2200 Rs.2500 crores/year Rs.1500 Crores/ year 80,000 People. 42 kms.
Length of water supply 50 kms. line
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(Source : Vatva Industrial association, Directory 200
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1.10.1Additional Features of Vatva

1) 2) 3) 4) Connectivity Amnesties USP Types of Industries Near By railways station,AMTS buses Police station, Post office, ESI hospital Telephone exchange. 85% of total units are of Tiny and SSI type. Plastics, Light & heavy engineering, Machinery & components, Chemicals, Paints, pharmaceuticals, Foundries, Textile Nirma, Torrent, Intas, Solid, Mamta, Prashant, Dutron, Meghmani, Metrochem, Godrej, Parle, Aec government CIPET, National Leather Research Institute, National Standards Laboratory, Indo German Tool Room
5)
Major players
6)
Prominent institutes
7)
Major Source of Income Octroi, property Tax, Sales Tax, for government By : 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
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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.
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1.10.2 Classification of Industries Percenta ge.
N o. 1) 2) 3 4 5 6 7 8 9 10 11
Types of Industry.
Engineering Industries Chemical & Allied Industries Plastic Industries Pharmaceutical Industries Textile Industries Ice Rubber & Package Industries Electronic , Electrical & Food Industries Cattle feed, Glass, Printers and stationers
30 32 5 5 3 3 5 4 2
% % % % % % % % % % %
Packaged Drinking water, Wood, Stone & Cement 2 industries. Other (Source :VIA directory, 2008.) 4
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1.11 NARODA
1.11.1 INTRODUCTION
Particulars Activity/Unit.
1 2 3 4 5
Set Up by GIDC Establishment of NIA Incorporated into AMC Area Units
1964 1968 1996 337 ht 1700
Naroda 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
1.11.2 Industry
The 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
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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
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1.11.3 NARODA IDUSTRIAL ASSOCIATIOS

1968 1994 1995 1996 1996 1996 1997 1998 2000 Established Tree Plantation & Beautification Project NIA Hospital Charitable Trust Common Effluent Treatment Plant Solid Waste Landfill Site Environmental Monitoring Committee(NEMC) Naroda Industrial Co. Op. Bank Ltd. Eco-Industrial Networking Research Project Cleaner Production Center(CPCN) Greentech Enviornment Excellence Award to Naroda Enviro Project Ltd. For service sector Golden Peacock Enviornmental Management Award to Naroda Enviro Projects Ltd. For Cleaner Technology MOU with AMC for infrastructure development for sharing Property Tax MOU with GIDC for taking over water supply scheme MOU with GIDC for greening of estate. Planted 20,000 saplings & 4kms fencing Won International Buisness Initative Directions(BID) Gold Award at New York by NEPL Setting up training center at Naroda and center of excellence at TSDF Odhav by NEPL
2001-2005
2005
2005 2009 2009
2009
2009
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1.12 ODHAV
Introduction 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 & No Particulars Activity/Unit. . 1) 2) 3) 5) 6) 7) 8) Set Up by GIDC Area Phases Total No. of sheds Road Length 1967-1968 127 hectares 4 525 14 km
Length of water supply 14 km line Overhead Water Tanks 2
Chemicals, Plastic, Machinery & Components, Pharmaceuticals, and Foundry (Source : odhav Industrial association, Directory 2008-2009)
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1.12.1 Additional Features of Odhav
1)
Connectivity
Near By railways station AMTS buses Road, Sewerage, Water Supply Line,
2)
Amnesties
Telephone Exchange, Post Office, Canteens, Police Station, Fire Station etc..
3)
USP
large & medium national corporate units but 85% of total units are of SSI type. Engineering, Dyes & Chemicals, Plastic, Machinery & Components, Pharmaceuticals, and Foundry etc.
4)
Types of Industries
(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.
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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 ODHAV
No. 1) 2) 3)
Types of Industry. Engineering Industries Chemical & Allied Industries Other Industries
Percentage. 37 28 35 % % %
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1.13 BEHRAMPURA
No. Particulars Unit/content.
1. 2. 3. 4. 5.
Name of the estate Year of establishment Area
Behrampura 1971-72 < 2 Hectors.
Number of the units 27 (plots) Number of operating 22 units (As on june2010) Water managed by Supply AMC Animal bone based operation. BRTS
6. 7.
Types of industry.
8.
Connectivity
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. 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 There were few Engineering industry at Behrampura during the early years of the operation , but majority of them left over the period time.
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, power etc as in smaller the number lesser the economic of scale and higher the cost of operation.
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1.13.1 TTC : ( Trans Thane Creek )

Introduction :
1) 2) 3) 4) 5)
Established Units Mainly Engineering Transportation Area
1963 3500 45 to 47 % BEST 2562 ht
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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 1853 1904 N and longitude 7248 7253 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.
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Part B
RESEARCH METHODOLOGY,FINDINDS & ANALYSIS AT NARODA,ODHAV, VATVA, BEHRAMPURA.
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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.
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2.2 Research Methodology

2.2.1Study 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, Upgradation 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
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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 It can directly lead to the improvement of current practice. management practice followed by GIDC, resulting in better maintenance of Naroda, Odhav, Vatva and Behrampura estates.
2) Learning Findings of the projects can help GIDC to from past to analyze its shortcomings and mistakes they Improve future 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.
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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 . Provides Employment to Approximatel y. Collective Annual turnover. Approximately Annual Export (approximate ly)
Name of the estates
Odhav, Naroda Vatva Behrampura (Source :Directory of respective association) 1.5 lakh to 1.8 lakh Rs .6000 to 7000 crore Rs. 2000 to 3000 crore
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 Useful

1) 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
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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.
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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.
Problem Definition The first and most crucial stage in research design determining the problem to be solved and objective of the research.
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.
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2.5.1 Methodology for Research:

Objective
To
study the existing management practices & operations and maintenance of GIDC estate on primary infrastructure facilities in the areas of Vatva, Naroda,Odhav & Behrampura.
Literature study
Water, power supply, other infrastructure Primary Data Collection by way of Questionnaire method,
Benchmarking
Data Collection
Secondary Data Collection from various Reports and other materials
Data Analysis
Recommendations and Conclusion
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.
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Presenting our ideas in front of Honorable VC and MD, and HODs of the GIDC
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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 treatment & disposal, solid waste. collection, conveyance,
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 satisfie d 5
Somewhat satisfied 4
Neutral
Somewhat satisfied 2
Highly dissatisfied. 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
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we just simply asked them to tell us the problem which they perceived to exist.
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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 Vatva response. Water Supply percentag e of responden t Highly 0% dissatisfied Somewhat 6% dissatisfied Neutral 8 % Somewhat 26 % satisfied Highly 60 % satisfied
1 2 3 4 5
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 parameter
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N o.
Types of Percenta response ge of . Respond ent Highly dissatisfie 14 % d Somewhat dissatisfie d Neutral Somewhat satisfied Highly satisfied 8 %
3 4 5
28 32 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
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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 crore
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Environmental Norms at Vatva :
N o.
3 4
Types of respons e. Highly dissatisfi ed Somewh at dissatisfi ed Neutral Somewh at satisfied Highly satisfied
Percenta ge of Responde nt 2%
15%
28% 25%
30%
Findings and analysis :
Findings from the subsequent research shows that, these industries were the main culprit for polluting Kharicut canal.
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
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.4)Roads, SWD & Streetlight N o. 1 2 Types of respons e. Highly satisfied Somewh at satisfied Neutral Somewh at dissatisfi ed Highly dissatisfi ed Percentage of Respondent 12 % 22 %
3 4
30 20
% %
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.
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No Types . response.
1 2 3 4 5
Highly dissatisfied Somewhat dissatisfied Neutral
of Percentag e of Responde nt 20 % 22 % 30 % 6 % 22 %
Somewhat satisfied Highly satisfied
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 estates
Analysis :
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6) Plots and Sheds : No Types of Percentage . response. of Responden t 1 Highly 6 % dissatisfie d 2 Somewha 16 % t dissatisfie d 3 Neutral 40 % 4 Somewha 28 % t satisfied 5 Highly 10 % satisfied
Findings and Analysis :

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. 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 :
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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.
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1 2 3 4 5
Parameter Power Supply Water supply Environmental norms Roads, SWD & Streetlight Securities , Cleaning , Encroachment
Level of satisfaction 100 < N < 66 66 < N < 33 66 < N < 33 33 < 33 < N< N< 0 0
Category Competitive Needs improvement Needs improvement Under developed Under 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 )
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No. 1 2
Category
Types
Number of 2200 industries Chemical Industry. 704
6 % of 42 chemical industry.
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 production. Category Percenta ge of responde nt 0 0 4 of total cost of
1) >15
2) 10 to 15 % 3) 5 to 10 %
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4) <5
38
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Analysis : Water as cost of production was not significant for 90 % respondent. Though water was not costly for them, however they are totally dependent upon water for their operation. Not having water cost them too much, as their operation stops without water. C ) Number of Water bore which were in operating condition Out of total 42 respondent 29 does not posses the bore, only one had the bore which were in operating condition, rest do not give any response. ( also see Annexure -2)
Analysis : Having bore in operating condition was not economical for industries as they have to pay the extra charges for that to GIDC, here water was available at cheap rate from association, so industry did not feel the need to keep bore in operating condition. D ) Duration of number. of water supply in hour. Almost 40 out of the respondent came with the answer of 16 to 18 hours, 2 respondent were not sure as they needed water only for 4 hours. E) Rate of water per KL ( kilo liter) Answer : Rs. 7 per kilo liter. F) Number of respondent which had capacity within the plots. home build water storage
Industries were reluctant to give the exact answer, G) Number of respondent who had procured water within last one year , from other sources except bores and GIDC pipelines .
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Answer, There was not a single respondent who used tankers or any other instruments for procuring water within last one year, which shows that water availability for 16 hours does not force them to buy water from other sources.
Category A ) chemical and allied industries. PARAMETER 2 Environmental issue. ( Effluent treatment and solid waste ) Sample Size 42 Sampling method : Stratified sampling. ( 6% of strata ) Survey for this parameter was aborted , as in majority of respondent when asked about the quality of effluent waste they produce, COD of the out let, and practice about reverse boring , became totally unwilling to share any data. However to get the real picture of the situation we followed the case study of Khaticut canal and also tried to approach the GPCB. Subsequently we found a report by parvaran samiti, which he had mentioned in the case study of khari river.
Category B ) Engineering Industry Parameter (3) Power supply Sample size 25 Units
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No Category . 1 2 3
Type s
Number of 2200 industries Engineerin g Industry. Surveyed 660 25
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1) Satisfaction Level with the level of service delivered. Answer: 80 % respondent were satisfied with the service 2) Number of respondent who were Satisfied with per unit charge on electricity Answer : Surprisingly All of the respondent were satisfied with the charge. 3) Reason for the satisfaction. Answer : Respondent came with the answer that, for them getting power without any Interruption is more important to them than paying few bucks extra for that. 4) Any specific complain or recommendation for the power supply . Answer : only respondent said that, during last monsoon, a electric pole felt down Resulting in power loss, other wise there was no specific problem.
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C ) Catetegory C(Other)
Category C Other,
Population
Water Supply
Power Supply
Effluent treatment
All industries 836 located Naroda (38 % excluding 2200) engineerin g and chemical type.
They were not dependent much upon water for of their operation.
All were satisfied with Power Supply Not applicable.
For them water was very cheap in comparison to other estate.
____________________________________________________________________
Parameter 4) Roads, SWD & Streetlight As this parameter was Equally applicable to all 3 category there was no need to go for stratified sampling. To get the actual picture of the situation we tried to collect the various data like 1) Road density 2) Number of street light and 3) SWD . Findings of the pilot study suggest that , There were only 32% of respondent who were happy with the service delivered for this parameter.
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Quality of the roads: The roads were not well constructed, 100 % respondent came up with the response that though roads on main lines were good, internal roads that were in bad condition. Road density = 0.08 ht/km, ideally according to worlds best practice, it should be ideally 0.15 to 0.20 SWD system : Strom water was a major problem here and we found out that no proper storm water drainage system exist over here. Average Space between 2 street light is 44 meter Street-light : Average Space between 2 street light is 44 meter, Ideally it should be 25- 30 meter. 5) Securities , Cleaning , Encroachment
No exact quantified data were available for this parameter, even we tried to approach AMC but basic data like total number of staff for the area were not available. Findings of the pilot study suggests that 42 % of the respondent were dissatisfied with the service. However one need not to have the exact data to know the real condition in this parameter as encroachment problem is clearly visible on the site, few of the photographs taken show that industry in general dump its waste on open ground.
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2.7 Naroda
Observations of Exploratory Survey (sample size 40 units) 1)Power Supply at Naroda estate.
Findings and Analysis :Majority of the respondent(82%)
were happy with the service provided for power supply, we may infer that quality of supply provided By GEB is good here.
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N o.
3 4
Types of Naroda Power respons Supply e. percentage of respondent . Highly 2% dissatisfi ed Somewh 8% at dissatisfi ed Neutral 8% Somewh 22% at satisfied Highly 60% satisfied
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: Naroda,Odhav Management of Estates, Study of Operations and Maintenance at Vatva, & Behrampura Annexure 8 Naroda Odhav Behra TTC Indian Worlds Averag best Indian Worlds e practice. India Average Worlds best Indian practice. Worlds Practic n Avg best Practice. Averag best e. Indian Worlds practice. e practice Poor At least Practi Averag best . 33 % of ece. Practic practice the area e. .should Practic under 70-80 100 % green e. <100% 100 % belt. Vatva
Benchmarking of Water Supply
Types of Percentag m Vatva Naroda TTC MIDC. response. e Odhav of Behram 3.5 , Vatva Naroda Odhav Behra TTC Pura Responde Pura MIDC. streetli Vatva Naroda Odhav Behram TTC m nt MIDC. ght Vatv Narod 24% Odha Behra TTC 1 Highly Pura MIDC. Green Space a NA NA 4 % Pura 0% NA and a v m Coverage dissatisfied MIDC SWD 2 Somewhat 18% Pura . dissatisfied PricePer Sq 3 Neutral 12% meter (2009) 93% 90% 94% 100% 92 % 4 Somewhat 28% Rs 2500 Rs.2500 Rs.2500 Rs.2500 Coverage 100 % 100% 100% 100% 100% Source of satisfied Satisfaction Street 900- Highly 350-400 250-300 3000-3500 Staff No concrete quantitative available, satisfied 18% data<30 water 5 Level
N o.
Light 1000 qualitative data suggests that are Bore Bore Bore AMC Bore Varie 38 % 34 % 48 % people 25 % Supplier Torrent Torrent Torrent Torrent less hopeful; to improve the situation. d Road 42 km 20 km 14 km <2 160 Km length Competitive Relatively Satisfaction 28 32 % 16 % 0% Level of Water km Level dissatisfaction advantage power Good 22 % 22 % supply 20 % 75 % WhenUninterrupted river becomes treatment Street 22.61 18.75 19.64 15 20.31 service is No Level of 42 No 54 %No 58 % % No 100No No effluent Canal . Satisfaction Problem Many of the respondent were not happy light/km delivered. dissatisfactio Level Identified with the design of sheds. n 78 %66 meter 100 % Space 44 86 % 53 meter82 % 51 meter 49 meter NA Suggestion GIDC has already stop theNo practice of between meters Problem High level of encroachment, proper Level of 6% 10% 8% 0% 110 villages Building thesewerage. shedsare 2IdentifiedTotal sanitation and dissatisfacti at Yes the Yes Streetligh ESR situated No Yes Yes Yes* on Suggestion Staff should be enough. ts downstream of KhariProblem Falling down of few poles during Duration of river, Proper where almostand 5 electricity lakh planning monitoring is must. Area 512 337 127 1 2568 Identified monsoon (rarely) Reverse boring -: 2 supply(hour
Bore Remov e hardne ss
25 to 30 meters.
Must.
people are forced to drink 16 6-10 10 4 5 2 to 4 Min 8. Suggestion Better monitoring ) polluted water. Many cases of 0.06 skin- disease, Road 0.110 0.10 0.06 0.08 25-35% Distribution 10-15% ______ NA 5 to 0.15 To avoid the wrath of the stomach problem, density loss _ 10% 0.20 industries were intestinal andsystem, bronchial km/ht unable to throw the found. Rate ailments has been -------- --------effluent directly into UN SWD UN UN UN Poor 30 % above Due to UN chronic health Deliberate falsification Rs/kilo liter Rs.7 open Rs.17 area, Rs.18 which Rs.12. average rain problem marriage should not 5 resulted even in worst proposal at Gamdi village AMC cause the outcome, as of lately, has reduced significantly. type business Out ofAtotal 30, of there arewater 4 they started directly logging. research error in having which One of the critical findings of our project respondent who are dumping the effluent Bore 10 3 bore atrespondent operating codition. into water bores at their Supplying water directly from bore without ESR , results in deliberately provides Authority VIA NIA OIA According to high electrical plot. consumptions to Green compensate water To keep water at falsea data to bore mislead Roads, peace report ground Satisfaction Securities , pressure of ESR. However old pipes at Vatva are notof able operating condition industry the process business Level water at Vatva has been have pay extra to withstand the pressure generated by to ESR,at research. SWD & 46 No. Particulars. Size Cleaning ,but charges to 50 % contaminated % 54 % to 75 % up 183 GIDC. Naroda same 40 year old pipes are able to Environmental withstand that meters 1) Population size 12 Level of Encroachment Streetlight
dissatisfaction
Water supply Plots & Sheds Power pressure very well, this contradiction led us to the one of Encroachment Streetlight
the findings 2) critical Sample size of our project 4 22 % 42 % 18 % 25 %
Page 87
Issues
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Management of Estates, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura

Gujarat Industrial Development Corporation

By Manish Joshi (B- 18) Mitali Thacker (A-55)

MBA Program Amrut Mody School of Management

sources and case studies were another source of the data

Our findings suggest that

86 % of the respondent were satisfied with

11. 12. 13. 14. a. 15.

Benchmarking of the estates Benchmarking of each parameter Recommendations

110 114 127

a. 18. 19. 20.

The whole project is divided into

PART C Benchmarking of the estates.

1.4 Activities of GIDC

Development of land includes supporting infrastructure

Roads, SWD Streetlight Water Supply

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

A bridge at Hajira port

GIDC - Industrial Estates and Clusters

60 special economic zones (SEZs) across Gujarat

Balanced Development and Common Infrastructure Planning & Sharing

1.6 Advantage of being inside the GIDC estate :

Low Low Low to moderate

threat of substitute products or services bargaining power customers buyers of

Industry highly favors the incumbent.

1.8 SWOT Analysis of GIDC

1.9 McKinsey 7S Framework

Determine how best to implement a proposed strategy.

Hard Elements1)Strategy 2)Structure 3)Systems

Up coming mega project where GIDC partially or fully involved.

2) Delhi Mumbai industrial freight.

Eastern Rajasthan, Eastern Gujarat, Western Maharashtra and Madhya Pradesh.

Satellite Image of Vatva Vatva Profile : Key Indicators

Length of water supply 50 kms. line

(Source : Vatva Industrial association, Directory 200

1.10.1Additional Features of Vatva

1.10.2 Classification of Industries Percenta ge.

Set Up by GIDC Establishment of NIA Incorporated into AMC Area Units

1964 1968 1996 337 ht 1700

1.11.3 NARODA IDUSTRIAL ASSOCIATIOS

2005 2009 2009

Length of water supply 14 km line Overhead Water Tanks 2

1.12.1 Additional Features of Odhav

Name of the estate Year of establishment Area

Behrampura 1971-72 < 2 Hectors.

1.13.1 TTC : ( Trans Thane Creek )

Established Units Mainly Engineering Transportation Area

1963 3500 45 to 47 % BEST 2562 ht

2 .Introduction to the Project

2.1Title Up-gradation, Operations and Maintenance of GIDC Estate.

2.2 Research Methodology

2.2.2 Need of the study

Name of the estates

2.2.4 Study Domain

How Business research can be Useful

How business research is relevant in this project

2.5.1 Methodology for Research:

Secondary Data Collection from various Reports and other materials

Recommendations and Conclusion

Pilot Study at Vatva.

2)Water Supply Vatva :

Environmental Norms at Vatva :

Findings and analysis :

Highly dissatisfied Somewhat dissatisfied Neutral