The government of Gujarat signed a memorandum of understanding (MoU) with the China Association of Small and Medium Enterprises (CASME) to set up a China Industrial Park at the Dholera Special Investment Region (SIR).

The MoU is estimated to attract Rs 10,500 crore investment by Chinese SME units in pollution-free, high-tech areas and create 15,000 direct and indirect jobs at local level. The MoU is likely to bring FDI from China in large quantity as Chinese firms are expected to set up units by 2022.

Chinese investors will also get concessions being offered by the Centre. Besides, they will get benefits under solar energy schemes for the MSME sector announced by the Gujarat government.

As per the MoU, CASME will promote Chinese industries and develop Dholera as a major investment hub. Dholera Industrial City Development will give permission to Chinese investors to develop infrastructure for plug and play. In another MoU, the Gujarat government’s enterprise, iNDEXTb, will provide details about policies and promotions to Chinese investors.