Gujarat China Clay Policy 2017

Transcription

1 Gujarat China Clay Policy 2017 Commissioner of Geology and Mining, Gujarat June

2 Table of Contents 1. Legal framework and duration of Gujarat China Clay Policy Preamble Background and Scope of Policy Framework Focus areas Annexures

3 1. Legal framework and duration of Gujarat China Clay 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 China Clay Policy The Gujarat China Clay Policy, 2017 shall come into force with effect from the date of notification and shall remain in force for a period of 60 months from the date of issuance of the Policy, unless specified otherwise. 3

4 Rs thousand crores Draft 2. Preamble 2.1. Gujarat is one of the most industrialised 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% % Mining contribution in SGDP- Gujarat 1.55% 2.00% 1.50% % 1.08% 0.65% 1.00% 0.50% SGDP at current price SGDP at constant price (Base Year 2011) Contribution of mining (excluding Natural Gas and Petroleum) 0.00% Source: Socio Economic Review , Gujarat 1 CAGR of SGDP at constant price with base year Socio Economic Review , Gujarat 4

5 Rs thousand crores Draft Mining contribution in SGDP- major mining states ( ) % % 5.6% 8.6% % 2.7% 3.0% 0.4% % 9.1% 10.00% 8.00% 6.00% 4.00% % AP TL CG GJ RJ OD MH MP KA JH GO SGDP at Current Prices ( ) Contribution of mining ( ) 2.00% 0.00% Source: Latest publicly available Socio-Economic Survey Reports of various states (as on ). As illustrated in above line 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 China Clay Policy

6 Million Tonnes million tonnes Rs/tonne Draft 3. Background and Scope of Policy 3.1. Review of the China Clay sector India is one of the largest producer of China Clay (more than 4.5 million tonnes) accounting for ~13% of the global production. The country is largely self-sufficient in meeting its demand of the Clay. The country imports around 0.1 million tonnes of China Clay of which more than 50% is imported from United States (US) for consumption in paper, pharma and other chemical industries United States is the largest producer and exporter of raw and processed China Clay. The country produces more than 5.7 million tonnes of the clay (~15 % of the global production) and accounts for about 31 % of the global raw and processed China Clay exports. Belgium, United Kingdom and Brazil are other major China Clay exporting countries by value of exports. Japan, Finland, Germany and China are major importers of China Clay Production of China Clay in 2016 (Mt) Export in 2016 (Mt) Production Export (Mt) Export Value per unit (Rs/ton) Source: USGS Commodity Summaries 2017; United Nations Commodity Statistics In the US, more than 40% of the China Clay produced domestically is used in paper coating and filling. The major use for crude China Clay in India is in the Cement Industry, while processed clay is mainly used in the Ceramic Industry, which consumes China Clay processed through conventional methods like levigation and washing. 5 Thus, high technology processing capacity of the country need to be augmented to enhance the value of China Clay by producing clay suitable for paper, paint, refractory and other chemical industries and to further enhance prospects of Indian China Clay in the international market. 3 USGS Mineral Commodity Summaries 2017 and Indian Mineral Yearbook data for 2015; 4 UN Commodity Statistics 5 Indian Mineral Yearbook 2015, Indian Bureau of Mines 6

7 million tonnes USD/tonne million tonnes million USD Draft Global Imports China Clay in 2016 (Mt) China Clay Imports to India in 2016 (Mt) US Ukraine UK China Iran Import (Mt) Import Value per unit (USD/ Ton) Import (Mt) Value (million USD) Source: UN Commodity Statistics 3.2. Domestic China Clay sector India is endowed with 2.7 billion tonnes of China Clay resources. The reserves constitute only about 7% of the resources i.e million tonnes. Kerala holds about 25% of the total resources, followed by West Bengal, Rajasthan (16% each), Odisha and Karnataka (10% each) and Gujarat (4.6%). Resources (%) state wise 4% 12% 25% 7% 10% 16% 10% 16% Kerala West Bengal Rajasthan Odisha Karnataka Jharkhand Gujarat Other Source: Indian Bureau of Mines The country s China Clay production is more than 4.5 million tonnes. Gujarat accounts for more than 60% of the production followed by Rajasthan and Kerala. Kutch district of Gujarat accounts for more than 50% of country s China Clay production Ceramic Industry is the largest consumer of processed China Clay in India and is the major driver of growth in the country. The Indian Ceramic industry ranks 8 th in the world and produces around 2.5% of the global output. 7 India is the third largest producer and consumer of ceramic tiles after China and Brazil. Morbi in Gujarat is the hub of Indian Ceramic Industries commanding about 70% of the market share of all ceramic products in India with more than 600 units. 8 Further, Morbi Cluster is the largest ceramic tile producing cluster in the world after Guangdong Province in China with a total capacity of 2.8 million sq m tiles per day. 6 Morbi Ceramic Association and Vibrant Ceramics 7 Vibrant Ceramics Expo and Summit 2016, Gujarat 8 Morbi Ceramic Association and Vibrant Ceramics 7

8 3.3. Gujarat China Clay sector SWOT analysis Strengths Vast resources: Gujarat has 4 th largest resource of China Clay accounting for 12% of country s resources as on Robust China Clay mining sector: As per IBM, Gujarat accounts for more than 60% of the country s production of China Clay. Furthermore, Kutch alone account s for more than 50% of country s production. The China Clay players in Gujarat has the required experience and expertise to increase the share of Gujarat China Clay market share in the country. Unorganized China Clay Sector: Morbi in Gujarat is one of the largest unorganized industrial cluster in India. Ceramic Tiles sector being driven by volume of scale requires constant capacity expansion that is capital intensive and time consuming. With increasing cost of land and infrastructure, the production cost of tiles may not be competitive from the new units, To leverage the existing opportunity in the market and to offset the risk of surplus capacity and cost, established organized players in the sector are forming strategic partnership with unorganized tiles manufacturing sector that constitutes more than 50% of the tile manufacturing capacity. Thus, organized players have ready market for their production in contrast to organized players that are recognized by their brands. Since, Morbi Cluster mostly consists of unorganized tile manufacturers, the current market dynamics strengthens their position in the market. Largest end use market of China Clay: Ceramic Industry is the largest consumer of processed China Clay in India and is the major driver of growth in the country. Morbi in Gujarat is the hub of Indian Ceramic Industries commanding about 70% market share of all ceramic products in India with more than 600 units. 9 Further, Morbi Cluster is the largest ceramic tile producing cluster in the world after Guangdong Province in China with a total capacity of 2.8 million sq m tiles per day. 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 India is one of the top 5 exporting countries of Ceramic Tiles (HS CODE 6901) both by value and quantity, accounting for 9.4 % global exports. 10 Kandla Port and Mudra Port handles more than 90% of these exports. 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 ensures 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. 9 Morbi Ceramic Association and Vibrant Ceramics 10 As per exports data for 2016, UN Commodity Statistics 8

9 Opportunities Existing demand-supply gap: As discussed in previous sections, Morbi commands about 70% of the market share of all ceramic products in India. As per the data provided by Ceramic Association Morbi, the total demand of China Clay of Tiles industries (Vitrified Tiles, Wall Tiles and Floor Tiles) of Morbi Cluster is around 40,000 tonnes per day (12 million tonnes per annum) of which around tonnes is supplied from Gujarat while the other tonnes is supplied from Rajasthan. Thus, there is an opportunity to enhance the production of China Clay from Gujarat and increase its consumption in Morbi Tiles industry. Market for Tiles: Highest consumption of Ceramic Tiles is being reported in Asia. The region accounts for about 65% of the overall demand of these tiles in the world. 11 India is the second largest producer of the tiles in Asia. However, China accounts for more than 60% of the total exports in the region. 10 By increasing volume of tiles production in the country, the tiles manufacturing sector can increase its global market share. Increasing demand of ceramic tiles: Morbi is the second largest cluster of Ceramic Tiles and major driver of demand of China Clay. 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. An upswing in construction activities, owing to increasing urbanization, is boosting the demand for ceramic tiles across the world. The Indian Tile sector has grown at a CAGR of 14 % from 2008 to 2014 compared to global CAGR of around 6.9% during the same period. 11 Given that the per capita consumption of tiles in India is only 0.59 sqm that is significantly less than many of the developing nations like 7.64 in UAE, 4.12 in Brazil, 3.33 in China, the industry is likely to grow in medium and long term. 12 Initiative by Government of India: The Central Government has proposed following schemes and initiatives that are likely to boost the demand of Ceramic Tiles in the country: o Swachh Bharat Abhiyan: Construction of community toilets to make rural areas Open Defecation Free (ODF) by construction of community toilets; o Housing for all by 2022 o Development of 100 Smart Cities High technology value addition: Globally, paper coating industry is the largest consumer of China Clay accounting for more than 35% of the global consumption. In US, white paper industry consumes more than 40% of the China Clay produced domestically. However, In India, Ceramic Industry and Cement Industry are the major Consumers, accounting for more than 80% of the total consumption 13. Ceramic industries consumes China Clay processed through conventional methods like levigation and washing. Thus, by introducing high technology value addition units in the state, the demand of China Clay from the state can be enhanced in paper coating, paint and 11 Vibrant Ceramics Report 12 Careratings report 13 USGS data and Indian Mineral Yearbook data for

10 pharma sector. Also, glass grade Silica Sand is produced after washing China Clay as an associate mineral. Currently, few players in Kutch are processing China Clay to produce glass grade Silica Sand. Employment generation potential: The production target of 10 million tonnes per year by 2020 is expected to generate employment for over 7500 people in the newly auctioned China Clay Bearing Area Threats Stiff competition from Rajasthan: China Clay producers in Gujarat are facing stiff competition from their peers in Rajasthan due to quality of China Clay produced in the state. Currently, more than 65% consumed by Morbi Ceramic Cluster comes from Rajasthan. 10

11 4. Framework 4.1. Policy Statement A futuristic Policy aiming to enhance contribution of China Clay sector in value of mineral production and manufacturing sector of Gujarat, thereby contribution of mining sector in SGDP. The policy focus on meeting the demand of domestic end use industries of China Clay by enhancing exploration, increasing China Clay mines, promoting systematic and scientific mining and developing infrastructure for production and processing Objectives Reservation of China Clay bearing areas of the state for long term raw material security of end use industries in the state To enhance and expedite exploration of China Clay resources to establish China Clay reserves using latest technologies through strategic partnership with private players and developing in-house facilities To enhance production of China Clay in the state and expedite the process of auction of China Clay leases To promote systematic and scientific mining of China Clay To promote sense of accountability towards safety, environment and quality in China Clay sector of the state To encourage investors to invest in value addition industries in China Clay by creating favourable investment policies, viable infrastructure and transparent environment To enhance the capacity and efficiency of government departments responsible for development of China Clay sector in the state To generate employment by developing human resource through skill development initiatives for working in China Clay sector Strategic goals of Gujarat China Clay Policy Establish High Level Committee for Minor Minerals in Gujarat (HLCMM) chaired by Commissioner of Geology and Mining, Post Auction Committee (PAC) and Working Group for Minor Minerals (WGMM) All the China Clay Bearing Areas, where detailed exploration is recommended and are identified for China Clay mining are to be explored at-least upto G-2 within 36 months from the date of issuance of Policy Document Increase the production of China Clay from the State to 10 million tonnes within 60 months from the date of issuance of Policy Document. 11

12 Increase the revenue from the royalty to INR 45 Crores within 60 months from the date of issuance of Policy Document Commissioning of China Clay Mining Cluster and China Clay Processing Cluster Finalize strategy for renewal/ re-auction of mining leases to be lapsed in 2025 under Section 13 (1) a. of GMMCR Complete amalgamation of gap areas in government land between China Clay mining leases with the existing mining leases Finalize differential safety and technical norms for China Clay mining with IBM and DGMS to enrich mineral conservation in the sector Develop dedicated portal on Commissioner Geology and Mining website to give complete information on the new initiatives and development in China Clay sector in Gujarat. 14 Area of China Clay Mining Leases envisaged to be auctioned and become operational during the Policy Term: 1000 Hectare Existing royalty on Raw China Clay: INR 45 Royalty revenue from raw China Clay by the end of Policy Term: INR 45 Crore 12

13 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 Minor Minerals (WGMM) will be constituted to review the progress in respect to exploration and auction of the Minor Minerals The mandates of HLCMM, Working Group for Minor Minerals and Post Auction Committee (PAC) are detailed in Annexure I of this policy document Reservation of China Clay Bearing Area The Government, with a view to conserve China Clay mineral, will reserve and delineate the China Clay Mining Leases in Kutch not already held under any mineral concession or any other use and where prospecting has been done or under implementation. The Government will specify the boundaries of such reserved area in Official Gazette. Such delineated areas will not be allotted to any person by revenue department without the consent of Commissioner of Geology and Mining. Such areas will be granted for china clay mining by way of auction Exploration China Clay s commercial viability depends upon the physical and chemical properties of the minerals. Thus, it is important to undertake detailed study of China Clay leases prior to the investment in mining in processing. Technical due diligence of all the China Clay Bearing Areas in the state will be undertaken and short term and medium term exploration and auction strategy will be devised. Currently, 12.6 sq km of China Clay Bearing Area in Kutch is explored at G-4 level. Exploration in these areas will be undertaken at G-2 level (as per Schedule I of Gujarat Minor Mineral Concession Rules) Opinion of Revenue Department of Government of Gujarat on whether these areas are available for mining or not will be taken before undertaking the exploration in the respective areas. Office of Commissioner of Geology and Mining will coordinate with the Revenue for timely disposal of such request Further, wherever further exploration will be recommended, G-2 level exploration will be undertaken to make the China Clay Bearing regions auction ready Expediting auction of China Clay leases Mineral Concession applications for China Clay Mining Leases of area more than 40 sq km are pending for approval for grant of Mining Lease. These applications shall lapse and mining lease in these areas will be granted through auction Currently, 7.76 sq km of China Clay Bearing area has been explored at G-1 Level. Mining leases in these areas will be granted through auction wherever the land will be available for mining. 13

14 5.5. Grant of mining leases in forest land Mining lease in the forest land will be granted to the applicant who obtains diversion of forest land from MoEF Selection of China Clay mining leases for auction The Government will ensure that commercially viable China Clay mining leases will be put up for auction. The government will also consider the dumping space for overburden before deciding on the area of the leases to be auctioned 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 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 modification and resubmit the modified mining plan The Post Auction Committee (PAC) will help Successful Bidder in addressing issues related to clearances and approvals China Clay Mining Cluster and China Clay Processing Cluster In order to facilitate investment in production, processing and value addition of China Clay, State Government will develop existing mining area in Bhuj, Rapar and Bhachau into China Clay Mining Cluster (CCMC) and also develop dedicated China Clay Processing Cluster (CCPC) in Kutch district. Government will develop more China Clay Processing Clusters at other locations in the state, subject to the requirement and need of the China Clay sector of the state. The assistance to be provided to the clusters will be subject to the recommendations in the Comprehensive China Clay Cluster Development Scheme (CGCDS) Comprehensive China Clay Cluster Development Scheme (CGCDS) is annexed in Annexure High technology processing of China Clay In India, ceramic industries is the major China Clay consuming industries accounting for more than 50% of the total consumption. Ceramic industries consumes China Clay processed through conventional methods like levigation and washing. Thus, high technology processing units need to be promoted to enhance the value of China Clay by producing clay suitable for paper, paint, plastic, rubber and sealants industries and to further enhance prospects of Indian China Clay in the international market. The State Government will support the enterprise investing in high technology China Clay processing plants by providing assistance under the Scheme for Technology Acquisition. HLCMM will do necessary due diligence on technology upgradation, economies of scale & large scale marketing, support & promotion for the development of high tech China Clay processing industries in the State. 14

15 5.10. Awards and recognition to China Clay Mines and processing units Award of 2 lakh, Trophy and Appreciation Letter will be given annually to each winner in each of the following category to China Clay mines and processing units of Gujarat: 1. Growth in production 2. Safety, environment and quality improvement measures 3. Compliance to rules and regulation of the sector 4. Innovation in Technology for New Product or Process Development The prescribed application form will be placed on website by end of August/September every year. The Enterprise/ Entrepreneur applying in any of the category should have completed 3 years in production of enterprise/manufacturing unit Application should be submitted in duplicate with all enclosures The nomination for the above categories need to be submitted to the concerned District Geologist (for mines) or District Industries Centre (DIC) (for processing units) within the stipulated time The application will be scrutinized as per the checklist by District Geologist or General Manager DIC as the case may be within 30 working days The District Geologist or General Manager DIC will forward the application along with certificate to the Commissioner of Geology and Mining or Industries Commissioner as the case may be The applicants will have to provide all information/clarification as per check list The Working Committee for Minor Minerals (WCMM) will evaluate and submit the recommendation to the High Level Committee for Minor Minerals (HLCMM) within 60 working days. The HLCMM will finalize the winners Increasing efficiency of institutions catalyzing development Dedicated portal will be developed for China Clay on Commissioner Geology and Mining website to give complete information on the new initiatives and development in China Clay sector in Gujarat. This portal will be used for quick responses to queries of potential investors in China Clay 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 China Clay 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. 15

16 5.12. Support in market development Government will include exhibitions/ conference identified by Working Group for Minor Minerals in the list of approved exhibitions/seminars 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 Systematic and scientific mining To reduce the chances of illegal mining and to encourage systematic and scientific mining, adjoining government land in gap areas will be added in existing leases/ quarry section The Office of Commissioner of Geology and Mining will make joint efforts with IBM and DGMS to fulfill the objectives of scientific and zero waste China Clay mining and entrepreneurs will be allowed to utilize the waste lying in China Clay mining leases on nominal charges The Government will make effort to attract glass industries in the state to encourage China Clay processing industries to produce glass grade Silica Sand from Silica Sand associated with Raw China Clay Strategy for auction of mining leases that are lapsing in More than 100 China Clay mining leases will lapse. The Government will appoint an officer to formulate a strategy for timely auction of these leases to offset any impact on end-use industries of China Clay in the state Overburden Dump The Department of Commissioner of Geology and Mining will formulate a scheme for management of overburden dumps in minor mineral mining leases. 16

17 Annexures Annexure I The mandates of HLCMM, Working Group for Minor Minerals and Post Auction Committee (PAC) 1. Composition of HLCMM is: 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 China Clay 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 Minor Minerals (WGMM) and devise an action plan for development and procurement of the same. e) Finalize the winners under various categories mentioned under Section 0 f) Sanction budget for activities undertaken under the scope of this Policy Document. g) Appointment of authorized Government Officer for formulation of strategy for renewal/ re-auction of China Clay mining leases to be lapsed in h) Approval of strategy and action plans recommended in strategy for renewal/ re-auction of China Clay mining leases to be lapsed in i) Review of due diligence undertaken by WGMM on technology upgradation, economies of scale & large scale marketing, support & promotion for the development of high tech China Clay processing industries in the State. j) Sanction budget for activities undertaken under the scope of this Policy Document. 17

18 3. The mandate of the Working Group for Minor Minerals is to: a) Finalise the modalities for undertaking China Clay exploration in the State. b) Review and monitor the exploration activities of China Clay in the State. c) Technical and commercial due diligence of China Clay Bearing Area for preparation of case for auction of blocks. d) 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. e) Due diligence on technology upgradation, economies of scale & large scale marketing, support & promotion for the development of high tech China Clay processing industries in the State. f) Development of dedicated portal on Commissioner Geology and Mining website to give complete information on the new initiatives and development in China Clay sector in Gujarat g) Identify exhibitions/ conference to be included in the list of approved exhibitions/seminars 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. h) Coordination with IBM and DGMS for undertaking study to finalize differential safety and technical norms for China Clay mining to enrich mineral conservation in the sector. 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 China Clay Leases in the State and take necessary actions as may be required. c) To conduct grievance sessions as mentioned under Section

19 Annexure II Comprehensive China Clay Cluster Development Scheme (CCCCDS) 1. Objective 1.1. To ease the business and investment environment in China Clay mining and processing 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. Basic infrastructure in China Clay Mining Clusters (CCMCs) and China Clay Processing Clusters (CCPCs) 3.1. The State Government will develop Basic Facilities in China Clay Mining Cluster (CCMC) The Basic Infrastructure for China Clay Processing Cluster will be developed under the Assistance for Industrial Infrastructure or Scheme of Assistance to MSMEs for Shed and Plot developed by GIDC or Assistance to MSEs for Shed and Plot developed by Private Developers or Assistance to GIDC for Development of Industrial Estate for MSEs.as recommended in Detailed Project Report mentioned under Section 5.1 of this scheme Some of the indicative Basic Facilities are: Government Support Office Water distribution facilities Electricity Sub-Station Boundary Wall Internal Road Street Lighting Storm Water Drains **The above list of basic facilities is illustrative. 4. Common infrastructure in China Clay Mining Clusters (CCMCs) and China Clay Processing Clusters (CCPCs) 4.1. Common facilities under CCCCDS will consist of creation of tangible assets as Common Facility Centres (CFCs). Some of the indicative activities under the CFCs are: Common testing and certification facility Training Centre 19

20 Effluent Treatment Plant Common logistic facility **The above list of common facilities is illustrative The State Government will propose the Central Government to fund the Diagnostic Study, Infrastructure Development and Common Facility Centres (CFCs) in the CCMC through Micro & Small Enterprise Cluster Development Program (MSE-CDP) 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 will be established by Office of Industries Commissioner. 5. CCMC and CCPC Project Preparation, Appraisal and Release of Funds 5.1. A Detailed Project Report (DPR), including location and extent of CCMC, infrastructure for CFCs, project cost along with data, surveys, projections and feasibility on growth potential of the CCMC, will be prepared by HLCMM with the help of reputed consultancy firm The DPR will include CFCs and infrastructure for the specified CCMC. The State Government will actively involve support institutions like financial institutions, technology providers, R&D institutions etc, wherever necessary Industries Commissioner and High Level Committee for Minor Minerals in Gujarat (HLCMM) shall approve the project components and funding thereof. 6. Other support by State Government to CCPCs and CCMCs 6.1. The State Government will encourage investment from major technology provide in China Clay processing and value addition industry on CCPCs The State Government will insist Gujarat Skill Development Council and National Skill Development Corporation to develop a course for China Clay beneficiation Any other support as may be identified by HLCMM. 20