Sanand GIDC Still Awaits Notified Status As Industries Flag Key Issues

Ridding on this momentum, the Gujarat government appears keen to further develop the area. But on the ground, industrialists say they are running into roadblocks that could stall progress if not addressed soon. They believe with the right policy support at the right time, these issues can be tackled effectively. This would also unlock Sanand GIDC’s full potential. It would also strengthen Gujarat’s role in the “Make in India” vision championed by Prime Minister Narendra Modi.

A major concern troubling companies in Sanand GIDC is the issue of double taxation. The estate falls under the jurisdiction of three separate gram panchayats. Each one collects property tax from the industrial units there. Yet, none provide any public services or infrastructure in return. Meanwhile, industrialists also have to pay maintenance charges to the Sanand Industries Association, which handles the upkeep of roads, drainage, and other essential services. In effect, businesses end up paying twice for basic services. Industry estimates suggest the panchayats collect around ₹50 crore a year through these taxes.

Elsewhere in Gujarat, industrial estates within the Ahmedabad Municipal Corporation limits operate under a more equitable model. There, 75% of the property tax collected is returned to the local industrial body for infrastructure maintenance and development. Rest 25% is retained by the corporation. This arrangement was established following a High Court directive. In contrast, despite multiple appeals, Sanand GIDC has yet to receive a similar arrangement—something that industrialists argue is long overdue.

Another pressing issue is for Sanand GIDC to be officially notified as a designated area. Industrialists have requested the government to declare it as a notified area. This would streamline administrative tasks and help ensure that tax revenues are used more efficiently. Though formal applications have been submitted, there has been no movement on the file. Companies are also facing delays and inconsistencies when it comes to stamp duty and lease deed formalities, often being charged more than necessary or getting stuck in bureaucratic loops when trying to secure land documents.

Beyond taxes and red tape, a more immediate challenge is the severe lack of worker housing. Sanand GIDC currently supports over 40,000 workers, a number that is expected to double in the coming years. But without any dedicated residential infrastructure, most workers are forced to commute from nearby villages, clogging raods and straining local transport. To address this, industrialists have proposed the creation of a planned industrial township with proper housing, schools, and healthcare services—along with an overbridge above the Ring Road in the Shantipura area to ease the daily traffic fflow for those coming from regions like Morbi and Surendranagar in Saurashtra.

Ajit Shah, President of the Sanand Industries Association, stated that a delegation recently met Chief Minister Bhupendra Patel to raise, both verbally as well as in written, these concerns. He emphasised that with Gujarat playing a key role in advancing the Make in India mission, it is crucial for the government to promptly resolve the difficulties faced by industries in Sanand GIDC.

Today, Sanand GIDC spans around 2,200 hectares—with 1,400 hectares marked for industries and the rest for roads, utilities, and sewer lines. Every industrial plot is currently occupied, and new units can only set up shop if existing ones voluntarily vacate space. This underlines the importance of creating an efficient, well-governed, and supportive ecosystem to sustain the rapid industrial growth in the region.