Essar Power, Arham Get Nod for Setting Up SEZs in Gujarat

Gujarat is poised to establish two new special economic zones (SEZs) that combined may produce more than Rs.27,600 crore in exports and almost 10,000 jobs within the next five years, as Essar Power Ltd and Arham SEZ (I) Pvt Ltd receive in-principle approvals for initiatives in Devbhumi Dwarka and Kutch districts.
Essar Power has obtained initial approval to establish a multi-sector SEZ at Kajurda village in Devbhumi Dwarka district spanning 56.65 hectares. The firm has suggested a first investment of Rs.50 crore and anticipates exports of approximately Rs.17,629 crore, while creating about 894 direct and indirect jobs within five years.
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Arham SEZ (I) Pvt Ltd has obtained preliminary approval for a multi-sector SEZ located at Vadala close to Mundra port in the Kutch district.
Covering an area of 94.19 hectares, the initiative involves an investment of approximately Rs.230 crore and aims to produce exports close to Rs.10,000 crore while generating around 9,000 direct and indirect employment opportunities in the next five years.
The suggested initiatives arise as Gujarat solidifies its role as India’s foremost export manufacturing center, with the state's functioning SEZs representing 21 percent of the nation’s overall SEZ exports.
The latest proposals leverage the robust success of Gujarat's current SEZ framework. Exports from the state's 24 functioning SEZs increased from Rs.1.79 lakh crore in FY15 to Rs.3 lakh crore in FY26, marking an approximate growth of 67 percent during this timeframe.
Investments in these areas rose from Rs.1.22 lakh crore to Rs.2.28 lakh crore during that time, whereas jobs surged more than threefold from approximately 63,000 to 2.22 lakh.
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The IAS official stated that Gujarat is also becoming a hub for semiconductor manufacturing, with facilities backed by Micron, CG Semi, Kaynes Semicon, and Tata Electronics designated as "captive SEZs" earlier this year.
The state still possesses significant land for industrial growth, featuring 3,514 hectares in Adani Ports and Special Economic Zone (APSEZ), as well as areas in Aqualine SEZ, GIDC Gandhinagar Electronics Park, and Aspen SEZ.
Nonetheless, the expansion narrative has not been consistent throughout all industries. Segments of Gujarat's textile-oriented SEZ ecosystem are encountering challenges, leading officials to commence the de-notification of specific land areas.
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Patil mentioned that the de-notification process for plots at Surat Apparel Park SEZ in Sachin is in progress, and a proposal for partial de-notification of Ahmedabad Apparel Park SEZ is also under consideration.
“The textile industry is facing tough times and struggling to persist,” Patil states. The action highlights the difficulties confronting export-driven textile businesses due to low global demand and margin pressures, while areas like semiconductors, engineering, and petrochemicals still draw new investments into Gujarat’s SEZ framework.