Creating dynamic, people oriented cities of the future: The Gujarat Experience

Published By : Admin | August 21, 2013 | 12:05 IST

According to some estimates, India will need 500 new cities in the next two decades. Existing infrastructure is barely able to meet the needs of residents with significant shortfalls in the areas of power supply, water & sanitation, housing and transportation. Urban and infrastructure development are critical issues facing India and the Gujarat experience provides multiple lessons. On the back of its infrastructure, even with only 5% of population and 6% of the geographical area, Gujarat contributes to 25% of India’s exports, 17% of Indian Industrial output and 37% of the cargo handled by ports in India (up from 29% in 2000). Here are a few learnings of how it has been able to achieve leadership in areas of urban development, energy, water & transportation.

Gujarat’s % share in total shipping traffic of India

Total traffic at major and minor shipping ports (‘000 Tonnes)- Note the substantial improvement of Gujarat’s numbers

Urban Development: Cities are the hub for human development and help attract investments and improve quality of life. Urban development requires both creation of new cities as well as development of existing cities. New cities face significant regulatory, governance and infrastructure challenges. Keeping these challenges in mind, Gujarat pioneered the concept of SIR (Special Investment Regions) in the country. Gujarat passed the SIR act in 2009 to enable local governance for these regions and is now developing thirteen SIR cities in the state including the flagship Dholera project on the Delhi Mumbai Industrial Corridor (DMIC).

Dholera with 2 million planned residents will be among the top fifteen cities in India and double the size of last planned city Chandigarh which is 45th  in terms of size in India.  Dholera comes with highway and metro connectivity to cities like Ahmedabad as well as high end technology access. Similarly GIFT (Gujarat International Finance Tech-City) is another 986 acre greenfield development initiative at advanced stage of development which will offer one of the best options to entrepreneurs and residents.

In terms of development of existing city development, Ahmedabad is a good example. Sabarmati riverfront was transformed in line with other world-class cities like Paris, London, Singapore etc. Ahmedabad BRTS (Bus Rapid Transport System) is the only successful BRTS in India and was awarded by ITDP (USA) for showing how large cities can reduce carbon emissions with smart systems.

Energy: Gujarat pioneered the development of parallel grid system to provide quality and continuous power supply to farms, households and industry (an idea now being replicated across states). In addition, an aggressive clean power generation focus was developed in areas like solar power where Gujarat now has 2/3 of India’s solar power capacity. 

Power Supply Situation in Top Five States (2013-14)

Source: CEA

To reduce distribution losses, special police stations and community reporting was started to control power theft and state electricity board started turning profits.

The results was 24X7 three phase, high quality power across the state with distribution losses going down to 20% from 35%. The results are all the more outstanding when compared to top five power consuming states in India which suffer power upto 25% power deficit while Gujarat is power surplus.

Similarly in gas sector, Gujarat is the only state to have two LNG terminals plus a state wide gas grid of 2,400 km built with private participation.

Water: A massive water harvesting and conservation campaign was started with development of 650,000 water management structures. Community based 14,000 water committees for drinking water distribution & management, a concept which has since been awarded by UN. A state wide water grid of 1,900 km of bulk pipelines, 100,000 km of distribution pipelines with filtration plants covering 10,000 villages was setup which is now able to supply tap water to 75% of households.

Gujarat also became the only state in the country where ground water level has risen, thus assuring high quality water supply for generations to come.

Transportation: A focus on roads led to 92% paved roads in Gujarat vs a national average of 58%. Gujarat also has the highest road network density per sq km in India.  Currently, it takes around 2 days to travel from Ahmedabad  to Delhi by road. Through DMIC, Government envisages creating roads where one can travel from Ahmedabad to Delhi in just 5-6 hours by road, which is on the similar lines of highways in foreign countries like Japan, China, United States etc.

Gujarat’s marine policy is now being replicated by many other states and led to 37% of India’s sea cargo carried by Gujarat ports alone. Similarly, Gujarat has the highest number of airports in the country (fourteen including one international airport).

Gujarat also developed the largest fiber optic network in Asia which connects all government offices right up to 18,000 villages.

The result of this infrastructure and urban development is evident in the quality of life and industrial growth in the state. Gujarat also leads the country in per capita income growth and industrial output. For states with rich potential like Andhra Pradesh, Gujarat and may of those who will be newly formed, it is prudent to share more successful ideas especially as most infrastructure development companies come from the region. If one collaborates on bigger ideas backed by great vision the urban landscape of India can change. The people of the two states as well as the rest of the country can benefit immensely if the best ideas and successes from Gujarat in the areas of urban and infrastructure development are used as case studies across the country.

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Yesterday, the Honorable President’s address was an expression of the self-confidence of 140 crore countrymen, an account of the collective endeavor of 140 crore Indians, and a very precise articulation of the aspirations of 140 crore citizens—especially the youth. It also laid out several guiding thoughts for all Members of Parliament. At the very beginning of the session, and at the very start of 2026, the expectations expressed by the Honorable President before the House, in the simplest of words and in the capacity of the Head of the Nation, reflect deep sentiments. I am fully confident that all Honorable Members of Parliament have taken them seriously. This session, in itself, is a very important one. It is the Budget Session.

A quarter of the 21st century has already passed; we are now beginning the second quarter. This marks the start of a crucial 25-year period to achieve the goal of a Developed India by 2047. This is the first budget of the second quarter of this century. And Finance Minister Nirmala ji is presenting the budget in Parliament for the ninth consecutive time—the first woman Finance Minister in the country to do so. This moment is being recorded as a matter of pride in India’s parliamentary history.

Friends,

This year has begun on a very positive note. A self-confident India today has become a ray of hope for the world and also a center of attraction. At the very beginning of this quarter, the Free Trade Agreement between India and the European Union reflects how bright the coming directions are and how promising the future of India’s youth is. This is free trade for an ambitious India, free trade for aspirational youth, and free trade for a self-reliant India. I am fully confident that, especially India’s manufacturers, will use this opportunity to enhance their capabilities.

I would say to all producers: when such a “mother of all deals,” as it is called, has been concluded between India and the European Union, our industrialists and manufacturers should not remain complacent merely thinking that a big market has opened and goods can now be sent cheaply. This is an opportunity, and the foremost mantra of seizing this opportunity is to focus on quality. Now that the market has opened, we must enter it with the very best quality. If we go with top-class quality, we will not only earn revenue from buyers across the 27 countries of the European Union, but we will also win their hearts. That impact lasts a long time—decades, in fact. Company brands, along with the nation’s brand, establish a new sense of pride.

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Friends,

It is natural for the nation’s attention to be focused on the budget. But this government has been identified with reform, perform, and transform. Now we are moving on the reform express—at great speed. I also express my gratitude to all colleagues in Parliament who are contributing their positive energy to accelerate this reform express, due to which it continues to gain momentum.

The country is now moving out of long-term pending problems and stepping firmly onto the path of long-term solutions. When long-term solutions are in place, predictability emerges, which creates trust across the world. In every decision we take, national progress is our objective, but all our decisions are human-centric. Our role and our schemes are human-centric. We will compete with technology, adopt technology, and accept its potential, but at the same time, we will not allow the human-centric system to be diminished in any way. Understanding the importance of sensitivities, we will move forward with a harmonious integration of technology and humanity.

Those who critique us—who may have likes or dislikes toward us—this is natural in a democracy. But one thing everyone acknowledges is that this government has emphasized last-mile delivery. There is a continuous effort to ensure that schemes do not remain confined to files but reach people’s lives. This tradition will be taken forward in the coming days through next-generation reforms on the reform express.

India’s democracy and India’s demography today represent a great hope for the world. From this temple of democracy, we should also convey a message to the global community—about our capabilities, our commitment to democracy, and our respect for decisions taken through democratic processes. The world welcomes and accepts this.

At a time when the country is moving forward, this is not an era of obstruction; it is an era of solutions. Today, the priority is not disruption, but resolution. Today is not a time to sit and lament through obstruction; it is a period that demands courageous, solution-oriented decisions. I urge all Honorable Members of Parliament to come forward, accelerate this phase of essential solutions for the nation, empower decisions, and move successfully ahead in last-mile delivery.

Thank you very much, colleagues. My best wishes to all of you.