Gandhinagar: Gujarat's upcoming industrial policy, expected to be unveiled within the next two weeks, proposes an ambitious new initiative aimed at encouraging industries located within municipal corporation limits to relocate outside urban areas. The scheme, titled Project THRIVE (Transition for Harmonized Relocation and Inclusive Vibrant Economy), offers a package of financial incentives, regulatory relaxations and infrastructure support to facilitate the shift.
The project is among the key highlights of the state's new industrial policy and seeks to address long-standing concerns over industrial activity within city limits while promoting planned urban development.
Key Features of Project THRIVE
Under the proposed framework, a minimum of 10 industrial units operating within a municipal corporation area can jointly establish a private industrial estate outside the jurisdiction of an urban development authority (UDA). Individual units will also be eligible to relocate independently. Officials involved in drafting the policy said such projects will benefit from streamlined and expedited approvals to reduce procedural delays.
One of the major incentives proposed under THRIVE is that relocated units will be treated as new units for the purpose of government incentives. This will allow them to claim benefits linked to eligible fixed capital investment and other support schemes available to new industrial ventures.
Financial Incentives and Support
The policy also proposes a wage support subsidy of Rs 5,000 per employee per month for six months after relocation. In addition, industries shifting out of city limits will be eligible for capital subsidies for developing industrial parks and creating common environmental infrastructure.
Government officials said special provisions have also been included for estates developed by the Gujarat Industrial Development Corporation (GIDC). If GIDC establishes a new estate specifically to accommodate industries relocating from an existing estate, the state government will reimburse 50% of the development cost. The benefit will subsequently be passed on to participating industrial units.
Environmental Clearances Simplified
Another significant feature is the proposal for GIDC to obtain blanket environmental clearances for such relocation estates. This would remove the requirement for individual units to secure separate environmental clearances, reducing compliance costs and speeding up project implementation.
Lessons from Global Models
Officials said the policy has drawn lessons from industrial relocation models implemented in cities such as Beijing, Guangdong, Jiangsu and Shunde in China, as well as Ho Chi Minh City in Vietnam. These jurisdictions have successfully used a combination of financial assistance, land incentives, infrastructure support and worker welfare measures to facilitate industrial relocation.
Context and Industry Response
The THRIVE proposal comes amid increasing attention on urban redevelopment and environmental concerns. Gujarat's cities are preparing for major international sporting events, including Ahmedabad's bid to host the 2030 Commonwealth Games and the state's efforts to attract the 2036 Olympics.
In October 2021, the Gujarat High Court had issued interim directions to the government while hearing a suo motu PIL to curb pollution in the Sabarmati River in Ahmedabad.
Industry representatives have welcomed the initiative. Apurva Shah, vice-president of GCCI, said that many industrial estates that were once on the outskirts of cities have now become part of expanding urban areas. With improved connectivity and government support, relocation outside city limits could benefit both industries and urban development.
