Dholera Special Investment Region: Key Information for Foreign Investors in India

Dholera Special Investment Region: Key Information for Foreign Investors in India
Calendar 14 Mar,2023 | Avirahi Group

The Dholera Special Investment Area (DSIR), a future greenfield smart metropolis, is around 100 kilometres from Ahmedabad, a significant industrial base (previously just known as a Harappan-era ancient port city). The DSIR is now frequently mentioned in the press since key connectivity projects are moving along more quickly and the area’s infrastructure development is anticipated to be finished within the next two to three years, barring any unforeseen delays. In addition, Gujarat’s first semiconductor production facility may soon be located at DSIR.
Ultimately, the Dholera SIR is envisioned as an urban-industrial base that will be built from the bottom up and eventually house manufacturing facilities, businesses, and residential neighbourhoods with the residential projects in Dholera SIR. Moreover, DSIR will have a self-sufficient, efficient transit system, and sustainable infrastructure that will support high living standards. Although several parts of the Dholera SIR endeavour are now being implemented, it is still unclear how the blueprint will turn out. However, given the fast paced growth condition, Dholera smart city plot price is seeing a considerable rise.

Dholera, Gujarat: from sleepy town to greenfield smart city

Dholera, in the west Indian state of Gujarat, has transformed from a little-known ancient port town located near the Gulf of Khambhat.
News stories speculating if the Dholera-Ahmedabad highway was the next project to get a project-push after the first leg of the Delhi-Mumbai motorway opened last month may have piqued some curiosity. Global investor interest will undoubtedly increase now that the joint venture (JV) between commodities juggernaut Vedanta and electronics manufacturing behemoth Foxconn has confirmed the placement of a semiconductor fab plant there.
The Foxconn-Vedanta JV would invest INR 1.54 trillion (US$18.65 billion), dubbed the “largest ever corporate investment in the history of independent India,” to build a semiconductor and display manufacturing facility in the Dholera Special Investment Area. Foxconn, a Taiwanese contract manufacturer, has separate production facilities in India where it produces iPhones for Xiaomi and Apple.

Dholera Special Investment Region

The Gujarati state capital, Gandhinagar, is 130 miles away from the Dholera Special Investment Area (also known as Dholera SIR or DSIR), which is situated approximately 100 kilometres south of Ahmedabad. It is anticipated to be a 920 km2 planned greenfield smart metropolis with 12 zones and 6 sub-centers. Nearby major industrial cities are Bhavnagar, Baroda, Rajkot, and Ahmedabad.
According to reports, residential plots in the area will be at least 200m2. Dedicated areas for public utilities, recreation, IT and knowledge centres, logistics, sports activity, and a city centre have also been allocated land for. Moreover, a special education zone and non-polluting industry zone have been allocated land.
The land parcels in the Dholera SIR will have built-up infrastructure and be completely ICT-enabled, utilising a plug-and-play strategy. The water and wastewater system treats all wastewater for non-potable and industrial uses in an effort to attain zero waste discharge.

The following elements to increase the allure of investment have been emphasised by the DSIR project:

  • Streamlining bureaucracy and requiring only one point of contact for transactions between the government and business (G2B)
  • A comprehensive list of permits organised by industry, a single point of contact for all business services, and a set amount of time to provide approvals and permissions all contribute to the ease of doing business.
  • As per the investment plan, competitive land price
  • Personalized assistance is provided throughout the whole investment lifecycle.
  • initiatives and strategies for financial support

Greenfield projects at Dholera Special Investment Region

Being a forthcoming industrial node on the Delhi-Mumbai Industrial Corridor is anticipated to have a significant positive impact on Dholera SIR (DMIC). Six of the 24 selected industrial nodes in the lauded DMIC manufacturing zone, or zone, are located in Gujarat. DMIC connects Delhi, the nation’s political capital, and Mumbai, its commercial capital, over a distance of 1500 kilometres. An international airport next to the village of Navagam, a solar park, a motorway, metro link, and a freight railroad line are among the upcoming infrastructure developments in the DSIR. The initiatives aim to create an urban-industrial zone at Dholera SIR that is of the highest quality, sustainable, technologically sophisticated, and self-sustaining.

A 1426-hectare greenfield international airport has been approved, and 75 further hectares have been set aside for commercial development. According to local press reports, the airport’s development could be finished by December 2025. The Dholera International Airport will help with the industrial township’s logistical needs. Also, it will reduce congestion at Ahmedabad’s 122km-distance Sardar Vallabhai Patel International airport. The Passenger Terminal Building with a handling capacity of 3.5 Million People Per Annum (MPPA) and a runway measuring 3200 metres in length with the necessary infrastructure for “Code E” Aircraft Operations are the key features of Dholera Airport.

Solar power park
Moreover, Dholera SIR will include an Ultra-Mega Solar Park with a 4400 MW capacity; as of Phase 1, 1000 MW is being put into use. A 300 MW project has been launched by Tata Power Renewables Energy Ltd (TPREL), a fully owned subsidiary of Tata Power. According to a press statement from the company, the project would produce 774 MUs (million units of power) yearly and will be India’s largest single-axis solar tracker system.

Expressway connecting to Ahmedabad
As previously mentioned, the Ahmedabad-Dholera Expressway (NH-751) is a proposed connectivity project that will build a 109km, four-lane (with the option of expanding to eight lanes), access-controlled motorway. More than 20% of the highway project’s development had been finished as of January of this year, which was the start of the project in 2021. Sardar Patel Ring Road near Sarkhej (southwest of Ahmedabad) and Dholera SIR are connected by the highway via Dholera International Airport in Navagam. The project has a December 2024 completion date.

Rail connectivity – freight and monorail
The proposed Bhimnath-Dholera Freight Rail Network would connect Bhimnath with Dholera. Direct connections will also be made to the Western DFC. Moreover, a light rail or monorail project that would run parallel to the motorway and connect Ahmedabad with Dholera SIR was approved in January 2021. The projected eight-station Mass Rapid Transit System (MRTS) will cost INR 60 billion ($726.79 million). The special investment region’s workforce will be able to move more easily thanks to its monorail transit system.

Thrust sectors

  • Gujarat has one of the highest percentages of automobile original equipment manufacturers (OEMs) in India. These OEMs produce automobiles, auto components, electric vehicle components, and batteries. The state’s major auto clusters are in Ahmedabad, Sanand, Halol, and Vadodara.
  • Defense engineering, artillery, ammunition, small arms, automotive, shipbuilding, composites/defense technology fabric, casting and forging products, electronic systems, and maintenance, repair, and overhaul are some of the areas that Gujarat state policy in this industry concentrates on (MRO).
  • Manufacturing hubs for capital goods and heavy engineering may be found at Ahmedabad, Jamnagar, Rajkot, Bhavnagar, Bharuch, Valsad, and Vadodara.
  • Gujarat is a desirable location for the manufacture of electronic OEMs and components for electronic systems.
  • Gujarat is a major agri-base and raw material producer with 51 dairy factories, the “Amul” brand, and support infrastructure like cold chain and logistics.
  • Pharmaceuticals and biotechnology: Gujarat has created bulk drug clusters, captive R&D facilities, and contract R&D facilities. It also makes a sizable contribution to exports and industry revenue nationally.

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