NOTICE OF TIMELINE FOR COMMENTS/SUGGESTIONS

Transcription

1 NOTICE OF TIMELINE FOR COMMENTS/SUGGESTIONS The Commissioner of Geology and Mining (CGM), Government of Gujarat has prepared the draft of the Gujarat Granite Policy, 2017 in exercise of the powers conferred under Section 15(1) of the Mines and Minerals (Development and Regulation) Act, The policy aims at development and promotion of the Granite sector in Gujarat state respectively. The draft policy was placed on the website of CGM ( for inviting comments/suggests from general public, Granite industry, industry associations, consumers, stakeholders, and other persons and entities concerned. The last date of receipt of comments / suggestions is now extended upto 15/07/2017. The comments/suggestions must be sent by to the following ID: ad-devp-cgm@gujarat.gov.in It may kindly be ensured that the comments are sent in MS-Office Word file. Alternatively, comments/suggestions may also be sent by post to the following address: Shri D.M. Solanki, Addl. Director (Dev.) Commissioner of Geology and Mining, Block 1st, 7th Floor, Udhyog Bhavan, Sector - 11, Gandhinagar, Gujarat The envelope may kindly be super scribed on the top with: Comments/suggestions on the draft Gujarat Granite Policy, 2017.

2 Gujarat Granite Policy 2017 Commissioner of Geology and Mining, Gujarat June

3 Table of Contents 1. Legal framework and duration of Gujarat Granite Policy 3 2. Preamble 4 3. Background and Scope of Policy India in global Granite industry and strategic needs of the sector Domestic Granite industry Gujarat Granite sector SWOT analysis 9 4. Framework Policy Statement Objectives Strategic goals of Gujarat Granite Policy (GGP) Focus areas Governance Exploration and physical analysis Selection of Granite mining leases for auction Post auction support Value addition of raw Granite Granite Processing Cluster and Granite Mining Cluster Increasing efficiency of institutions catalysing development Support in procurement and development of new technology Facilitate centres of excellence and institutions for skill enhancement Support in market development 16 Annexures 17 2

4 1. Legal framework and duration of Gujarat Granite Policy 1.1. In exercise of the power conferred under Section 15 (1) of the Mines and Minerals (Development and Regulation) Act, 1957, the Government of Gujarat hereby notifies The Gujarat Granite Policy The Gujarat Granite Policy, 2017 shall come into force with effect from the date of notification and shall remain in force for a period of 36 months from the date of issuance of the Policy, unless specified otherwise. 3

5 2. Preamble 2.1. Gujarat is one of the most industrialized states in the country. The State has been at the forefront of development of the nation for the past decade. With investor friendly business climate and infrastructure availability, Gujarat State Domestic Product (SGDP) has been rising at an average yearly growth rate of approximately 9% since Manufacturing sector in Gujarat is at the forefront of this growth contributing around 31% to State Gross Domestic Product (SGDP) 2. The sector has grown at a CAGR of 14% from FY to FY With increasing demand and population, there is a need for quantum jump in the sector. Recently, Gujarat Industrial Policy 2015 has been formulated to provide necessary momentum to the sector by facilitating investments through strategic partnerships, promoting value addition for development of entire value chain, encouraging sustainable development and enhancing skills for employment Mining is the primary process in the value chain of manufacturing, hence, mining & mineral sector of the State has to be in line with the strategies messaged in industrial policy of the State The contribution of the mining to SGDP in FY was 0.65%. Rs thousand crores 1200 Mining contribution in SGDP- Gujarat % 1.55% % 1.08% 0.65% SGDP at current price SGDP at constant price (Base Year 2011) Contribution of mining (excluding Natural Gas and Petroleum) Source: Socio Economic Review , Gujarat 2.00% 1.50% 1.00% 0.50% 0.00% 1 CAGR of SGDP at constant price with base year Socio Economic Review , Gujarat 4

6 Mining contribution in SGDP- major mining states ( ) % 10.00% Rs thousand crores % 3.0% 5.6% 0.6% 6.1% 8.6% 2.7% 0.4% 9.1% 0.1% 8.00% 6.00% 4.00% 2.00% 0 AP TL CG GJ RJ OD MH MP KA JH GO SGDP at Current Prices ( ) Contribution of mining ( ) 0.00% Source: Latest publicly available Socio-Economic Survey Reports of various states (as on ) As illustrated in above graph, contribution of mining to SGDP is one of the lowest in Gujarat compared to major mining states having similar mineral profile in the country. Thus, there is a need to focus on developing policies for facilitating investments in the mining sector by establishing potential resources through exploration and by developing value addition industries in the State. The Government is committed to ensure development of mining sector in sustainable and integrated manner to facilitate employment in the remote areas of the State and also for the growth of Micro, Small & Medium Enterprises (MSMEs) With this objective and within the above perspective, the Government of Gujarat decided to formulate "The Gujarat Granite Policy

7 3. Background and Scope of Policy 3.1. India in global Granite industry and strategic needs of the sector India was the third largest producer of Granite with a production of around 50 million square metres in World Granite production, 2014 million square metres China Brazil India Saudi Arabia Italy Spain Vietnam Taiwan Russia Egypt Turkey Portugal Others Source: World Natural Stone Association India was also the largest exporter of raw Granite. The country exported raw Granite worth USD 532 million and processed Granite 3 worth USD 914 million in But, unlike other major exporters like China and Brazil that export mainly processed/ value added Granite, India majorly exports raw Granite in terms of quantity. In FY 2015, 75% of India s Granite export in terms of quantity comprised of raw Granite while 25% comprised of processed Granite. 3 Processed Granite in this document shall mean the Granite produced after processing of any kind on raw Granite block like cutting, polishing, chemical treatment etc. 6

8 Thousand Tonnes Raw Granite exporters India 191 Brazil South Africa Blocks China Finland Crude/roughly trimmed Total trade value Source: United Nations Commodity Trade Statistics Database USD Million Thousand Tonnes 6000 Raw Granite importers Blocks Crude/roughly trimmed Total trade value USD Million Thousand Tonnes Processed Granite exporters China India Brazil Italy Spain USD Million Thousand Tonnes Processed Granite importers USD Million Cut/sawn slabs Total trade value Worked granite Cut/sawn slabs Total trade value Worked granite Source: United Nations Commodity Trade Statistics Database China is the largest importer of raw Granite and largest exporter of processed Granite. The country exported processed Granite worth USD 4812 million in The country has evolved with a strategy of importing large volumes of crude/roughly trimmed Granite mainly from India; processing them using low cost labour and exporting processed Granite to the developed markets. India accounts for two-third of China s crude/roughly trimmed Granite imports. As China imports large volumes from India, it enables China to dictate prices Major importers of processed Granite from China are USA, Japan, Korea, Germany and Iraq. Gujarat has logistics advantage and raw material availability to increase its global market share in processed Granite. Thus, the Policy aims at facilitating investment in value addition of Granite in the State with impetus on promoting new and advanced technology for cutting and polishing of Granite to compete with Chinese exports. 7

9 3.2. Domestic Granite industry Granite resources are found in 17 states in India. However, Granite reserves are establsihed only in 7 states i.e. Rajasthan, Odisha, Karnataka, Kerala, Madhya Pradesh, Tamil Nadu and West Bengal. Nearly 98% of Granite reserves are located in Rajasthan, Odisha and Karnataka that have a share of 42%, 30% and 26% in India s total Granite reserves respectively Andhra Pradesh is the largest Granite producing state in India. Although, Granite resources in the State do not fall under reserves category, the State has been exploiting its resources and is the leading state in terms of value of Granite production. It accounts for more than 50% of total value of reported Granite production in India. Apart from Andhra Pradesh, Karnataka, Kerala, Rajasthan and Tamil Nadu are major contributors to value of Granite production in India. Share of Country's Granite resource 4% 5% 20% Karnataka 18% Rajasthan Jharkhand Gujarat Andhra Pradesh 19% 20% Madhya Pradesh Share of Country's Granite reserves in million cu. m 26% 31% 2% 42% Rajasthan Odisha Karnataka Others Source: Indian Bureau of Mines Gujarat has the fourth largest resources of Granite in India. The resources are located in Sabarkantha, Banaskantha, Mehsana, Panchmahal, Dahod, Vadodara, Amreli, Bhavnagar and Kachchh districts of Gujarat. The State has no proven reserves and there is a need to establish the potential reserves in Gujarat through exploration to attract investment in Granite sector. Raw Granite production in the State in FY was around 1.40 lakh tonnes. Most of the raw Granite produced in Gujarat (apart from raw Granite slabs for exports) are processed in Rajasthan. For processing of stones, the Government of Rajasthan has developed dedicated Industrial Areas in Kishsangah, Udaipur, Alwar, Chittorgadh and Bikaner districts. The Department of Commerce, Ministry of Commerce and Industry, Government on 18th September 2016 notified the new import policy for Marble and Travertine Blocks, and Marble and Granite Slabs. The Minimum Import Price (MIP) on the import of Granite Slabs have been reduced to USD 50 per sq meter to address the distortion associated with MIP. Also, most of the processed Granite from Rajasthan enters Gujarat and is exported from Kandla Port. Thus, this Policy aims to harness State s strategic location and infrastructure to promote value addition and mining of Granite in the State. 8

10 3.3. Gujarat Granite sector SWOT analysis Strengths Vast resources: Gujarat has fourth largest resource of Granite accounting for 18% of country s resources as on Infrastructure for export: Gujarat is endowed with longest coastline in the country with 42 ports. The State contributed around 19% of India s total exports (including all commodities) in Kandla Port is one of the key Granite exporting ports in the country apart from Chennai Port, New Mangalore Port, and Krishnapatnam Port. Proximity to major markets of processed Granite: Gujarat is strategically located at the westernmost part of India. Italy, Germany and Middle East countries are major importers of processed Granite and Gujarat has logistic advantage over China and other states in the country for exports to these nations. The logistic infrastructure of the State can be strategically utilized to increase the market share of the country in global processed Granite market. Availability of raw material: Gujarat is located in the neighborhood of major stone producing regions like Rajasthan, western part of Uttar Pradesh and Madhya Pradesh. Also, raw Granite can be sourced through major Granite exporting countries like Brazil. Thus, the State provides the necessary raw material security to the investors in Granite sector. Investor friendly policies: Gujarat Government is committed to promote policies for promoting Ease of Doing Business (3 rd in Ease of Doing Business Ranking) in the State. Investment Facilitation Portal, Investor Support System, Chief Minister Cabinet Committee for Industrial Policy and Monitoring (CCCIPM) etc ensure early redressal of bottlenecks in development of industries in the State. The State organizes India s largest business summit Vibrant Gujarat to enhance the government business interaction in various sectors Weaknesses No proven reserves: Despite having vast resources of Granite, no proven reserves of the stone are identified in the State Opportunities Boom in construction activities: As Granite is primarily used in construction industry, growth in construction sector drives demand of Granite. As per Global Construction Outlook 2020 report, global construction industry currently stands at USD 8.5 trillion. It is expected to reach USD 15 trillion by 2025 i.e. value of construction sector is expected to double in the coming decade. Major drivers for this growth will be China, India and USA, which are expected to account for 60% of the overall growth. In India, Andhra Pradesh, Gujarat, Maharashtra and Tamil Nadu 9

11 - accounted for more than 50 per cent of the projects funded by banks and financial institutions (FIs) in From , INR 99,805 Crore has been invested in infrastructure in Gujarat and INR 1.18 lakh Crore has been planned for in Big 2020 Vision of Government of Gujarat. Gujarat is one the most urbanized state in the country with 42% of the total population of the State residing in the urban area. With increased economic activity in the State, large population are migrating from within and outside the state into the urban areas of Gujarat. As a result, as per Socio-Economic Review , Gujarat, the urban population in Gujarat is growing at a rate of 36%. This has increased the demand of urban infrastructure like houses, metros, bridges etc. in the State. Value addition industry: India is mostly exporting raw Granite blocks. Thus, with availabilityof raw material and infrastructure, Gujarat can emerge as a hub for cutting and polishing of Granite by facilitating investment in Granite processing industry. Technology upgradation: Upgradation in technology has helped producers in reducing costs for production and processing of Granite. Use of modern technology has helped China in achieving lower cost of processing than its peers and subsequently acquiring major share of global processed Granite market. In India, manufacturing of short slabs costs nearly Rs. 37/sq. ft. while in China it costs Rs.17/sq. ft. as Chinese use modern technology in cutting and processing of slabs. In China generally a 6.50 mm thick blade is used for cutting Granite while in India mm thick blade is used which results in more wastage and lower productivity. Gujarat needs to promote latest technology available to increase productivity and efficiency of Granite production to enable producers to produce and process Granite of high quality at low cost. Employment generation potential: The production target of 14 lakh tonnes per year by 2020 is expected to generate employment for over 2000 people in the newly auctioned Granite Bearing Area Threats Stiff competition from China in processed Granite export market: Because of low cost of production of processed Granite products from China (In India, short slabs costs nearly Rs. 37/sq. ft. while in China it costs Rs.17/sq. ft.), Indian Granite producers are unable to compete with Chinese sale prices in export market. As a result, China s share in Granite export market is increasing steadily. If Indian Granite players will not upgrade their machineries, they may keep losing their processed Granite export share to Chinese players. Shortage of skilled labour, increasing labour cost: Granite mining and processing require skilled manpower that understand the patterns of fractures and joints present in the stone. India is suffering from shortage of skilled labour. As per the Economic Survey of India, present skilled workforce in India is only 2% of overall workforce. Also Consumer Price Index (CPI) for Industries Workers has increased at a CAGR of about 10% in past ten years as per 4 Reserve Bank of India Report 10

12 Ministry of Labour. Increasing labour cost will result in increase in cost of production for Granite industry. Also, shortage of skilled labour will result in lower manpower productivity. 11

13 4. Framework 4.1. Policy Statement A futuristic Policy aiming to enhance contribution of Granite sector in value of mineral production and manufacturing sector of Gujarat, thereby contribution of mining sector in SGDP. The policy focuses on quality and techno-economic efficiency by promoting value addition through latest technology in the sector while generating employment and achieving economic, environmental and social sustainability Objectives To enhance and expedite exploration of Granite resources to establish Granite reserves using latest technologies through strategic partnership with private players and developing in-house facilities To enhance production of Granite in the State and expedite the process of auction of Granite leases To encourage investors to invest in value addition industries in Granite by creating favourable investment policies, viable infrastructure and transparent environment To promote investment in modern technology and research and development for cutting and polishing of Granite To generate employment by developing human resource through skill development initiatives for working in Granite sector Strategic goals of Gujarat Granite Policy (GGP) To complete the exploration of Granite Bearing Area (GBA) in the State in 1:500 Scale along with physical and petrographic analysis of samples of Granite from GBA Auction of leases identified in Category 1 and Category 2 Area To increase the production of Granite from the State to 14 lakh tonnes within 36 months from date of issuance of policy document To increase the revenue of State from royalty to INR 30 Crore within 36 months from date of issuance of policy document To become one of the major Granite processing state in terms of value of processed Granite production To increase the contribution of Granite export in value of total exports from Gujarat by 200%. 5 Category 1: Positive opinion has been received from Revenue Department on land use as Granite quarry Category 2: Opinion of Revenue Department of Government of Gujarat on land use is pending 12

14 5. Focus areas 5.1. Governance The government is committed for successful and time-bound implementation of this Policy. In order to ensure that all key aspects of this Policy are successfully implemented, a High Level Committee for Minor Minerals in Gujarat (HLCMM) chaired by Commissioner of Geology and Mining, Post Auction Committee (PAC) and Working Group for Stone Sector (WGSS) will be constituted to review the progress in respect to exploration and auction of the stone The mandates of HLCMM, WGSS and PAC are detailed in Annexure I of this policy document Exploration and physical analysis Granite s commercial viability depends upon the physical properties and aesthetic quality of the stone. Thus, it is important to undertake detailed study of the Granite leases prior to the investment in mining and processing. To enhance the confidence of investors in Granite blocks, for the areas identified for auction of Mining Lease, exploration of the Granite bearing areas, as established in Preliminary Study (1:50000 scale) and Detailed Study (1:8000 scale), will be undertaken in 1:500 scale along with petrographic and physical analysis of the samples before putting up the identified areas in auction for Mining Lease. The physical tests will include compressive strength test, specific gravity test, porosity test and tests to establish frequency of fractures and joints The exploration will include established and emerging technologies such as non-intrusive and non-invasive techniques in the process of exploration & evaluation All the available data in the form of geological reports, ground water reports, magnetic data, geo-chemical data, geophysical data, regional exploration data as well as data on current working and non-working concessions will be collected, collated and analysed during the desktop study for broad delineation of potential areas Opinion of Revenue Department of Government of Gujarat on whether the land proposed for exploration is available for mining or not will be taken before undertaking the exploration in the respective land. Office of Commissioner of Geology and Mining will coordinate with the Revenue Department for timely disposal of such request The exploration activities will be undertaken through outsourcing model. The technically qualified exploration agency(s) will be selected for exploration through competitive bidding The petrographic analysis of Granite samples will be undertaken in house. Necessary infrastructure will be developed for quality analysis of the samples. 13

15 Physical tests and analysis for establishing compressive strength, porosity, patterns of joints and fractures etc. of samples taken from Granite Bearing Areas will be undertaken through outsourcing or through strategic tie-up with government testing facilities/ institutions like National Institute of Rock Mechanics and Gujarat Engineering Research Institute Online data integration and decimation system, with details about geological map of area, reserve, quality, land survey details and other aspects, to facilitate the State Government in formulation of exploration and auction strategy. Online Geological Reports can be developed and provided to potential investors after development of such system Selection of Granite mining leases for auction The Government will ensure that commercially viable Granite mining leases will be put up for auction. The government will also consider the dumping space for Granite waste before deciding on the area of the leases to be auctioned. The commercial, technical and economic parameters related to Granite slabs will be assessed by Working Group for Stone Sector and HLCMM through discussion with Granite industry players before putting up a Granite block for auction Post auction support The officer authorized in this behalf by the State Government shall within a period of 90 days from the date of receipt of mining plan or modified mining plan, convey approval, modification or disapproval to the applicant. In case of disapproval, the officer shall also convey the reasons for disapproving the said mining plan or modified mining plan. In case of modification, the lessee shall carry out the required modifications and resubmit the modified mining plan The Post Auction Committee (PAC) will help Successful Bidder in addressing issues related to clearances and approvals Value addition of raw Granite Given the geographical advantage of Gujarat and availability of raw material from neighbouring landlocked regions such as Rajasthan, Madhya Pradesh as well as western Uttar Pradesh, the government will focus on value addition of raw Granite procured from 3 sources i.e. Granite produced in Gujarat, procured from neighbouring states and imported raw Granite. The focus will be on enhancing the value of Granite export from the state. HLCMM will do necessary due diligence on technology upgradation, economies of scale & large scale marketing, initial support & promotion for the development of Granite processing industry in the State Granite Processing Cluster and Granite Mining Cluster In order to facilitate investment in production, processing and value addition of Granite, State Government will develop dedicated Granite Processing Cluster (GPC) and Granite Mining Cluster (GMC) for Granite processing and value addition in North Gujarat. Government will develop more clusters at other locations in the State, subject to the requirement 14

16 and need of the Granite sector of the State. The assistance to be provided to the clusters will be subject to the recommendations in the Comprehensive Granite Cluster Development Scheme (CGCDS) Comprehensive Granite Cluster Development Scheme (CGCDS) is annexed in Annexure Increasing efficiency of institutions catalysing development Dedicated portal will be developed for Granite on Commissioner Geology and Mining website to give complete information on the new initiatives and development in Granite sector in Gujarat. This portal will be used for quick responses to queries of potential investors in Granite To play a more pro-active role and to ensure that the needs of the industries are adequately addressed, a grievance addressing session for the Granite sector industries will be organised with Industries Commissioner and Commissioner of Geology and Mining at the helm. These sessions will be conducted on regular basis wherein industries can request for a timely intervention from the government Support in procurement and development of new technology Gujarat with its strategic location has huge potential to emerge as a Granite processing centre. The government will leverage this strategic advantage in major business summits like Vibrant Gujarat with the help of FIGSI to encourage the investors in major Granite countries like China and Italy to invest in Granite sector in Gujarat and bring in latest technology in the sector. Government will encourage the global major equipment manufacturer in Granite processing sector to set-up equipment manufacturing plant in Granite Processing Clusters (GPCs) Granite sector will get special focus in events/ seminars/ exhibitions organised in mining sector in State. For acquaintance of latest technology to Granite players, exhibitions and seminars will be organised by the state government from time to time Facilitate centres of excellence and institutions for skill enhancement Government will insist National Skill Development Corporation to develop a course for skill development in cutting and polishing of dimensional stone In existing ITIs, 6- month courses will be started for cutting and polishing of Granite. A short course structured by CGM department with the help of Federation of Indian Granite and Stone Industries will be prompted through ITIs and other training institutions Government will insist the Federation of Indian Granite and Stone Industries and local associations in Granite sector to develop vocational training cum skill development centre in GPC and GMC. 15

17 Stone Artisan Park Training Institute is a project of Government of Gujarat to harness the potential of State s stone industries. The government will develop a curriculum for training in Granite stone cutting and polishing, Stone Enterprise Development etc. in SAPTI Support in market development The domestic Granite producer may get the preferential treatment for supply of Granite for infrastructure development in Gujarat The government will form strategic partnership with FIGSI to provide a platform for confluence of sellers and buyers in Granite sector by organising exhibitions and conclave dedicated to Granite in the State One of the expansive marketing practice around the globe is participation in international and domestic trade fairs to showcase one s products. Government will include STONA, Stone Mart and other exhibitions identified by Working Group for Stone Sector in the list of approved exhibitions for the purpose of assistance under scheme Assistance to MSME manufacturing sector participation in exhibition through Industries Association/ Federations and Chambers, Scheme for market development assistance for participation in International Trade Fair outside India and Assistance to organiser for organizing industrial exhibitions in Gujarat. 16

18 Annexures Annexure I 1. Composition of HLCMM is: The mandates of HLCMM, Working Group for Stone Sector and Post Auction Committee (PAC) a) Commissioner of Geology and Mining (Chairman) b) Additional Director, Technical c) Additional Director, Development d) One person from Finance Department e) One independent person from industry 2. The mandate of HLCMM mentioned in provision 5.1 is to: a) Device an Annual Action Plan (AAP) with targets to achieve the objectives outlined in Granite Policy 2017, Gujarat. b) Review and monitor the various activities undertaken as per AAP prepared by the committee. c) Finalize the leases that are to be auctioned and mandatory actions to be taken for the auctions of the block. d) Scrutinize the case of new technologies put up by Working Group for Stone Sector (WGSS) and devise an action plan for development and procurement of the same. e) Sanction budget for activities undertaken under the scope of this Policy Document. 3. The mandate of the Working Group for Stone Sector(WGSS) is to: a) Finalise the modalities for undertaking granite exploration in the State. b) Review and monitor the exploration activities of granite in the State. c) Finalise the status of exploration, work out the area of the blocks proposed for auction and put up the case for auction of blocks to the HLCMM. d) Identify new technologies for exploration and processing of granite and put up the case for development or procurement of these technologies to the HLCMM. 17

19 4. The mandate of Post Auction Committee is to: a) To assist the successful bidders in getting the necessary clearances and approvals. b) To monitor the status of operational and non- operational Granite Leases in the State and take necessary actions as may be required. 18

20 Annexure II Comprehensive Granite Cluster Development Scheme (CGCDS) 1. Objective 1.1. To attract investments in Granite mining, processing and value addition in the State. 2. Scope and coverage 2.1. Assistance under the scheme will be admissible for creation of basic infrastructure and Common Facility Centre (CFC). The scheme also covers the role of government for establishing tie-ups with financial institution, skill development institutions, technology majors etc. for the development of the clusters. 3. Granite Processing Clusters (GPCs) and Granite Mining Clusters (GMCs) 3.1. The State Government will develop Basic Facilities in Granite Processing Cluster (GPC) and Granite Mining Cluster (GMC) under the scheme Assistance to GIDC for Development of Industrial Estate for MSEs Some of the indicative Basic Facilities are Government Support Office Electricity Sub-Station Boundary Wall Internal Road Street Lighting Storm Water Drains 4. Common facilities 4.1. Common facilities under CGCDS will consist of creation of tangible assets as Common Facility Centers (CFCs). Some of the indicative activities under the CFCs are: For GPCs Warehouse Common testing and certification facility Training Centre R&D Centre 19

21 Effluent Treatment Plant Common logistic facility Granite Park Centre for decimation of information about modernisation of processing units For GMCs Common lease for dumping waste Granite Common logistic facility 4.2. The above list of common facilities is illustrative and each cluster could have its own specific requirements based on the nature of units being set-up and the products proposed to be manufactured. Industries Commissioner and High Level Committee for Granite Sector in Gujarat (HLCMM) shall approve the project components and funding thereof The CFC should be operationalized within two years from the date of final approval, unless extended with the approval of Industries Commissioner Charges for services of CFC shall be on differential rate basis, lower fee for small units and higher fee for medium and large units. The grading of small and large unit will be established by Office of Industries Commissioner. 5. GPC and GMC Project Preparation, Appraisal and Release of Funds 5.1. A Detailed Project Report (DPR), including location of GPC and GMC, infrastructure for CFCs, project cost along with data, surveys, projections and feasibility on growth potential of the GPC, will be prepared by HLCMM with the help of reputed consultancy firm The DPR will include CFCs and infrastructure for the specified GPC and GMC. The State Government will actively involve support institutions like financial institutions, technology providers, R&D institutions, etc. wherever necessary. 6. GPC and GMC financial assistance 6.1. Infrastructure facilities and financial assistances to GMC and GPC shall be subject to the assistances identified under the scheme Assistance to GIDC for Development of Industrial Estate for MSEs The State Government will propose the Central Government to fund the Diagnostic Study, Infrastructure Development and Common Facility Centers (CFCs) in the GPC and GMC through Micro & Small Enterprise Cluster Development Program (MSE-CDP). 20

22 7. Other support by State Government to GPCs and GMCs 7.1. The State Government will encourage investment from major technology provide in Granite processing and value addition industry on GPCs The State Government will insist Gujarat Skill Development Council and National Skill Development Corporation to develop a course for skill development in cutting, polishing and fabrication of dimensional stone. It will put forward a proposal for the development of skill development centers in GPCs by these institutions Any other support as may be identified by HLCMM 21