New Delhi: Ahmedabad has attracted an investment of Rs 71,270 crore since 2010, the highest among the top 10 emerging business destinations identified by global property consultant Cushman and Wakefield (C&W).
Ahmedabad, Vishakhapatnam, Kochi, Vadodara, Bhubaneswar, Chandigarh, Coimbatore, Jaipur, Indore and Nagpur are the top 10 emerging business destinations offering a long-term investment potential, C&W said in a report.
Vishakhapatnam ranked second with an investment of Rs 58,180 crore, followed by Vadodara which attracted an investment of Rs 24,720 crore.
The consultant said these ten cities have attracted a total investment of Rs 1,83,700 crore since 2010.
"Ahmedabad has attracted nearly 39 percent of the total investments announced for these cities since 2010, followed by Vishakhapatnam at 32 percent and Vadodara at 13.5 percent," C&W said in a statement.
The study 'Top 10 Emerging Business Destination in India', released by Urban Development Secretary Sudhir Krishna, took into account infrastructure (including physical, social and real estate), economic activities and government support and initiative.
In the last two years, the volume of investment by various companies in these 10 cities has increased by over seven times, it added.
Ahmedabad saw an investment of about Rs 71,270 crore, bulk of which was in the automobile and auto-components sector, followed by telecom and real estate & infrastructure.
Vishakhapatnam, with an investment of Rs 58,180 crore, has seen a growth through metals and metal processing sectors followed by petrochemicals. Vadodara, saw an investment of Rs 24,720 crore, from similar sectors, such as metals and metal processing followed by real estate and engineering sectors.
Among the sectors, the report said, metals and metal products manufacturing firms have announced the highest volume of investments with a 39 percent share, followed by power production companies at around 16 percent and chemical/ petrochemical firms with about 11 percent share.
Commenting on the report, C&W India Executive Managing Director, Sanjay Dutt said, "These emerging locations represent the possible growth trajectory India?s economy will follow in the next few years".
"Businesses are looking at identifying other suitable locations to setup or expand as they provide the advantage of either lower production and operation costs and access to better resources or to avail better infrastructure and/or benefits of favourable government policies," he added.
Addressing a realty conference organised by GIREM, Krishna said the ministry would call a meeting of these 10 emerging cities to tell them "what all potential lies, if they follow right policy".
The secretary said that city plan should be monetised and contribute to the GDP. The development charge should be based on the investment done on developing infrastructure of city.
"Cities are engine of growth. City plan, if designed well, can pay for itself. City can mobilise resources for development," Krishna said. He cited example of Metro rail.
To kickstart a project, he said the government can be involved but felt that the primary role should be of city planner and the role of Central and state governments should be diminished.
Favoured migration of people to urban cities, Krishna said the ministry is in favour of high FAR (floor-area ratio), high rise buildings and transit-oriented development that would lead to better land utilisation.
Asked about the initiative by the ministry in these areas, the secretary informed that it has invited an expression of interest from agencies/consultants to undertake the task of revision of the Urban Development Plan Formulation and Implementation (UDPFI) Guidelines, 1996.
Krishna supported BRTS (Bus Rapid Transit System), saying that "dedicated lane for bus is a must". He said metro rail should be linked with feeder services. "We are moving in direction of common ticketing (for public transport)."
Asked about the proposed land acquisition bill, he said the urban development ministry wants the new law to support development and fair compensation to land owner.