Ahmedabad: Gujarat govt has reserved a total of 1,700 acres of land to relocate industries currently operating within Ahmedabad city limits under its newly announced THRIVE scheme, aimed at shifting units outside municipal corporation areas.Of the land identified for upcoming industrial clusters, around 1,100 acres have been reserved in Surendranagar district and about 600 acres in Kheda district, according to officials familiar with the plan.THRIVE—Transition for Harmonized Relocation and Inclusive Vibrant Economy—has been positioned as an incentive-backed relocation policy for industries situated within municipal corporation limits, with the state signalling a push to decongest cities and improve environmental conditions.A senior state govt official said priority will be given to industries currently located in GIDC estates in Ahmedabad, while units operating on private land within city limits will also be considered for allotments in the new clusters. “Industries in GIDC estates will be taken up on priority. But units on private land are also eligible for land in these upcoming clusters,” the official said.Sources said that govt is exploring steps to simplify the conversion and transfer process for plots in existing GIDC estates to enable smoother exits. “We are considering making the freehold land process easier for industries in GIDC estates so their exit from the current plots is not held up by procedural hurdles,” the official said.It needs mention that Gujarat High Court has ruled multiple times advocating shifting of industrial units in Ahmedabad to outside city limits. Prodded by HC, the relocation drive is now being pursued as part of a broader objective to improve urban environment and planning outcomes to support a cleaner environment ahead of Ahmedabad hosting Commonwealth Games-2030 and a potential Olympics-2036 bid.THRIVE policy includes multiple incentives aimed at reducing the immediate financial shock of moving operations. Key measures include a wage support subsidy of Rs 5,000 per month per employee for six months, as well as a capital subsidy for setting up industrial parks and common environmental infrastructure facilities.Industry groups, however, have raised concerns about the feasibility and costs of relocation, especially for units dependent on local labour and supply chains. Ajay Patel, chairman of the GIDC committee at the Gujarat Chamber of Commerce and Industry (GCCI), said shifting industrial units out of the city could be disruptive and may not yield the intended participation levels.“The government should allow industries to operate within the city. Shifting is extremely difficult—entire workforces will need to move,” Patel said. He added that several chemical units have improved compliance standards over the years. “Chemical industries have achieved much better environmental compliance within the city. Achieving the same benchmark at new locations will take time and will be difficult,” he said. Patel also cautioned that participation may be limited. “If relocation is enforced, only about 10% of units may actually move, while others could shut down or switch to different businesses,” he said.A member of a textile processing association said the economic terms and infrastructure readiness would determine whether units relocate. “If relocation is needed, land must be offered at very competitive rates,” the member said. “The government should develop common infrastructure, and provide enough time for units to start production at the new location before stopping production at existing factories,” the member added.
