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1. Why Tata Shifted Nano Car Project From Singur (West Bengal) to Sanand (Gujarat)?

This refers to the controversy generated by land acquisition of the proposed Nano
factory of Tata Motors at Singur in Hooghly district, West Bengal. The state
government of West Bengal created the controversy by citing the 1894 land
acquisition act rule to conduct an eminent domain takeover of 997 acres (4.03 km2) of
farmland on which Tata Motors was supposed to build its factory. The rule is meant
for public improvement projects, and the West Bengal government wanted Tata to
build in its state. This project was opposed by activists and opposition parties in
Bengal. Singur was chosen by the company among six sites offered by the state
government. The project faced massive opposition from displaced farmers. The
unwilling farmers were given political support by West Bengal's opposition
leader Mamata Banerjee. Banerjee's "Save Farmland" movement was supported by
environmental activists like Medha Patkar, Anuradha Talwar and Arundhati Roy.
Banerjee's movement against displacement of farmers was also supported by several
Kolkata based intellectuals like Aparna Sen, Kaushik Sen, Shaonli Mitra and
Suvaprasanna. The people staying in the proposed land were forced to evacuate by
the government. The compensation given was considered inadequate and the new
housing facilities offered were delayed. This led to the protest of the peasants backed
by opposition political parties. The Tatas finally decided to move out of Singur on 3
October 2008. On that day, after a brief meeting with the Chief Minister, Ratan Tata
declared his decision to move the Nano Project out of West Bengal. Tata mentioned
his frustration with the opposition movement at Singur Project led by Trinamool
Congress chief Ms. Mamata Banerjee. Ratan Tata blamed agitation by Banerjee and
her supporters for the pullout decision. On 7 October 2008, the Tatas announced that
they would be setting up the Tata Nano plant in Sanand, Gujarat. The Kolkata High
Court declared the acquisition prima facie illegal. The air seemed to have cleared
somewhat when the High Court ordered the state government to submit correct
figures following which an affidavit but was not satisfied with the result. In a fresh
affidavit filed later in June 2007, the government admitted to 30 per cent of the land
was acquired from farmers without consent. The affidavit remains unclear on whether
the lack of consent is based on insufficiency of the compensation or refusal to sell
altogether. The CM of Gujarat, Narendra Modi then sent an SMS to Mr. Ratan Tata,
which simply said "Suswagatham", to persuade him to relocate the Nano factory to
Gujarat. It took 14 months to build a new factory in Sanand, Gujarat compared with
28 months for the Singur factory. In 2016, the Supreme Court quashed the West
Bengal government’s acquisition of 997 acres of agricultural land for Tata Motors and
ordered its return to 9,117 landowners.
2. Why there are more Sugar Factories in Gujarat located in the Navsari/ Bardoli
region of South Gujarat?
Gujarat is one of the well-known sugar cane producing regions in India. This has been
one of the reasons for the growth of sugar industry in the state. After independence,
the government gave importance to the growth of sugarcane farming in the state and
established a number of sugar cane mills. After the market liberalization policies took
place in the 1990s, the export of the sugar industry increased to a great extent. Gujarat
sugar industry forms a major part of the sugar industry in India. It is a part of the agro
based industries in the country and contributes a significant portion to the gross
domestic product of the country. In fact, India is the second largest producer of sweets
in the world and a number of varieties of sweet products are manufactured in various
sugar mills of Gujarat and exported to other countries across the world. Due to the
growth of technology, newer methods have been implemented which has increased
the production of sugar. Today, the sugar mills in Gujarat are equipped with an array
of hi-tech facilities and services which make them a known name in the field of agro
based industries. Today, there are around 554 sugar mills and factories in the state of
Gujarat. It must be noted in this respect that almost all of the Gujarat Sugar Industry
is under a state cooperative system where the government partly controls the
production and the business. However, there are also a number of sugar mills which
are privately owned. Out of the 554 sugar mills, most of them are covered under the
co-operative system. According to the recent surveys, the total amount of production
of sugar in the state is around 190 lakh metric tons. The sugar mills form a bulk of the
Gujarat sugar industry. Around 17 sugar factories in the state are equipped with
advanced technological equipments which have a capacity to crush around 65,000
tons of sugar daily. Around 1.9 lakh hector of the total cultivable land is meant for
sugarcane cultivation. Today, the sugar mills in the state covers and employs more
than 4.50 lakh farmers and cultivators. The overall turnover of the co-operative sugar
mills in Gujarat crossed around Rs 2000 crores for the financial year 2008 to 2009.
Apart from offering various types of employment opportunities in the organized
sector, the unorganized sector also offers scope for employment for lots of people. It
is estimated that the total number of people directly and indirectly associated with
the Gujarat sugar industry is around 3.15 lakh.
3. Why India is the second largest manufacturer of cement in the
world?
With 460 million tonnes per year (MTPA) of cement production capacity as of 2018,
India is the second largest cement producer in the world and accounts for over 8 per
cent of the global installed capacity, as of 2018. No wonder, India's cement industry
is a vital part of its economy, providing employment to more than a million people,
directly or indirectly. Ever since it was deregulated in 1982, the Indian cement industry
has attracted huge investments, both from Indian as well as foreign investors. As of
July 19, the production of cement stood at 28.08 million tonnes. The cement
production capacity is estimated to touch 550 MT by 2020. Of the total capacity, 98
percent lies with the private sector and the rest with the public sector. The top 20
companies account for around 70 per cent of the total production. The demand of
cement industry is expected to achieve 550-600 million tonnes per annum constantly
by 2025 because of the expanding requests of different divisions i.e. housing,
commercial construction and industrial construction. India has a lot of potential for
development in the infrastructure and construction sector and the cement sector is
expected to largely benefit from it. A total of 210 large cement plants together account
for 410 million tonnes of installed capacity in the country, while 350 mini cement
plants make up the rest. Of the total 210 large cement plants in India, 77 are located
in the states of Andhra Pradesh, Rajasthan and Tamil Nadu. Cement production in
India increased from 230.49 million tonnes in 2011-12 to 297.56 million tonnes in
2017-18. Expecting such developments in the country and aided by suitable
government foreign policies, several foreign players such as Lafarge-Holcim,
Heidelberg Cement, and Vicat have invested in the country in the recent past. A
significant factor which aids the growth of this sector is the ready availability of the
raw materials for making cement, such as limestone and coal. In Budget 2018-19,
Government of India announced setting up of an Affordable Housing Fund of Rs
25,000 crore (US$ 3.86 billion) under the National Housing Bank (NHB). The move is
expected to boost the demand of cement from the housing segment. The eastern
states of India are likely to be the newer and virgin markets for cement companies and
could contribute to their bottom line in future. Cement plants near the ports, for
instance the plants in Gujarat and Visakhapatnam, will have an added advantage for
exports and will logistically be well armed to face stiff competition from cement plants
in the interior of the country. The Government of India is strongly focused on
infrastructure development to boost economic growth and is aiming for 100 smart
cities. The government also intends to expand the capacity of the railways and the
facilities for handling and storage to ease the transportation of cement and reduce
transportation costs. These measures would lead to increased construction activity
thereby boosting cement demand. As per Union Budget 2019-20, Government is
expected to upgrade 1,25,000 kms of road length over the next five years.
4. Why Gujarat ranks first in terms of the area covered by Special Economic Zone (SEZ)?

India was one of the first in Asia to recognize the effectiveness of the Special Economic
Zone (SEZ) model in promoting exports, with Asia's first SEZ set up in Kandla in 1965.
With a view to overcome the shortcomings experienced on account of the multiplicity
of controls and clearances; absence of world-class infrastructure, an unstable fiscal
regime and with a view to attract larger foreign investments in India, the Special
Economic Zones (SEZs) Policy was announced in April 2000. Since the enactment of
SEZ Act in 2005 which came into effect on 10th February, 2006, it provided for drastic
simplification of procedures and for single window clearance on matters relating to
central as well as state governments. In a span of about eight years since the SEZs Act
and Rules were notified in February 2006, formal approvals have been granted for
setting up of 405 SEZs, of which 329 have been notified and 32 have been given In-
Principal Approvals as on 31st December, 2016. While, 206 SEZs are operational and
around 4,218 units are approved within the SEZs as on 31st December, 2016.

Gujarat ranks first in terms of total area covered under SEZs in India. It is also a leading
SEZ state with the highest geographical area of 29,424 hectares under SEZ
development. As of October 2011, Gujarat had 45 formally approved SEZs, 6 in-
principle approvals and 30 notified SEZs. Gujarat’s three operational SEZs are: Kandla
SEZ, SUR SEZ, Surat Apparel Park. It is the first state to formulate a SEZ policy, which
includes flexible labour laws and exit options for investors. SEZs in Gujarat get a 10-
year corporate tax holiday on export profit: 100 per cent for the initial five years and
50 per cent for the next five years. Government of Gujarat has accorded priority for
setting up special economic zones and has introduced the Special Economic Zone Act
2004. The SEZ act was made operational from May 2004. The state government also
introduced amendment to the industrial dispute act 1947 for providing flexible labour
employment in special economic zones. Due to this many reasons there are many
number of Special Economic Zones (SEZ) present in Gujarat.
5. Why Crude oil refining share of Gujarat is 38.9% (93.7% of 241.055
MMTA?
Gujarat accounts for 62% of India’s petrochemical production, 30% of other chemicals
production and 40% of chemical exports. World’s largest grassroots refinery in
Jamnagar, India’s first operational petroleum, chemicals and petrochemicals
investment region (PCPIR). 4 refining complexes with combined capacity of 102
MMTPA providing feedstock. India’s first chemical port in Dahej. Presence of more
than 4400 industrial units that manufacture chemicals and chemical products. 6500
chemicals and petrochemicals are produced. Also, Gujarat has a well established gas
grid of 550 kms and it plans to expand the same to 2200 kms with investment worth
USD 500 million. Investments have been proposed to build new LNG terminals in
addition to the existing terminals at Dahej and Hazira are underway. The state offers
immense opportunities across the energy value chain. Progressive and investor
friendly attitude, including rationalization of tax regime, power reforms and SEZ
development coupled with the logistical proximity to the middle east gas resources
are among the significant growth enablers for the sector.

6. Why Gujarat’s Share in soda ash is 98% of the country?


The state contributes to around 20% of India’s total chemical production. It produces
about 98% of total soda ash, 90% of liquid chlorine and 66% of phosphatic fertilizers.
Gujarat also houses India’s only chemical port terminal, which has a capacity of 3
MMT. Gujarat has a strong base of diversified chemical industry with approximate 700
large and medium scale units and 31,000 small scale and other factory sector units
over 1300 projects of the chemical and allied sectors have been commissioned.
Gujarat has a strong infrastructure backing with good connectivity of road, rail, air and
water. The well established linkages with raw material and machinery suppliers are
significant growth drivers for the industry. Over the last couple of years, Gujarat has
witnessed an exodus of several small and medium scale manufacturing units to other
states, which offer more fiscal benefits.

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