On the first day of the Vibrant Gujarat – Global Investors’ Summit, which got underway on 28 September 2003, eight memoranda of understanding were signed for a total investment of over Rs.7,500 crore.

Given below are salient features of these MoUs.

1.  Signatories: Gujarat Narmada Valley Fertilisers Company, Oil & Natural Gas Corporation

Value: Rs.500 crore

Objective: co-operation in the exploration and development of coal bed methane (CBM), research and development of underground coal gassification, pipeline network for transportation of oil and gas and marketing of hydrocarbon gases.  GSPC will also undertake pipeline work for ONGC. The duration of the MoU will be 10 years from the date of signing.

2.  Signatories: Gujarat Industrial Development Corporation Ltd, STAEG Encotec, GmbH

Value: Rs.100 crore

Objective: Setting up of the Gujarat Energy Research and Management Institute (GERMI) at Ahmedabad.  GERMI is proposed to be a world class institution which will be developed into a global centre for energy studies and related activities.  The institute will have linkages with German universities for collaborative post-graduate programmes in energy management.  It will also serve as a resource centre for energy professional and policy makers.  It is expected that GERMI will be the first institute of its kind in the energy sector in India and will provide human resources to manage the economy of Gujarat.

3.  Signatories: Gujarat State Petroleum Corporation, NELP IV partners (HPCL, Jubilant Enpo, Geo Global Resources)

Value: Rs.500 crore

Objective: Oil & gas development. GSPC will pump in Rs.300 crore, Hindustan Petroleum Corporation will provide Rs.100 crore while Jubilant Enpo Ltd and Geo Global Resources Ltd will jointly spend Rs.100 crore.  GSPC will collaborate with HPCL JEL and the Canada-based GGR for accelerated exploration activities in various basins of India.  To begin with, GSPC will bid for exploration blocks offered under NELP-IV. 

4.  Signatories: Gujarat Industrial Development Corporation, Shell Group BV (Holland)

Value: Unknown

Objective: Development of the Hazira special economic zone (SEZ). Hazira Port of the Shell Group has already set up a LNG jetty and the port at Hazira and is to establish a solid cargo port as well. 

5.  Signatories: Gujarat Industrial Development Corporation, Hindustan Petroleum Corporation Ltd.

Value: Unknown

Objective: Feasibility study for proposed SEZ (MoU No.4). HPCL will serve as the infrastructure provider and the decision to integrate the SEZ and port development will be taken after the study is completed. 

6.  Signatories: Gujarat Industrial Development Corporation, Oil & Natural Gas Corporation

Value: Rs.4,000 crore

Objective: Development of Dahej Special Economic Zone.  ONGC has agreed to be an equity partner of GIDC to an extent of 26 per cent to be invested in by new company called Dahej SEZ Ltd.  This company will be responsible for the development of necessary infrastructure for development of Dahej SEZ.  According to the MoU, GIDC and ONGC will work together to look for a third-party developer, who has experience in such project. This party could also be offered a major share in the proposed Dahej SEZ Ltd.  The MoU also covers cracking of C-2, which will be located at Dahej SEZ.

7.  Signatories: Gujarat State Energy Corporation Ltd, Gujarat Power Corporation Ltd

Value: Rs.350 crore

Objective: Setting up of a 107 mw gas-based power plant in Gujarat.

8.  Signatories: Gujarat government, Indian Farmers Fertiliser Co-op. Ltd.

Value: Rs.2,500 crore

Objective: Setting up of fertilizer and phosphoric acid plants. The government will provide assistance for setting up a fertiliser plant at Kalol and also setting up of a phosphoric acid plant at Kutch.

Background on Jubilant Enpo Ltd : JEL, with a $350 million turnover, is headed by Shyam Bhartia and Hari Bhartia and has interest in pharmaceutical, specialty chemicals, oil and gas and food services.  GGR, a Canadian company, is headed by J P Roy and has been involved in exploration activities in India.

Also see:

Reliance to invest Rs.10,000 crore in Gujarat: 29-Sep-03