Gujarat is set to add two new special economic zones (SEZs) that together could generate over ₹27,600 crore in exports and nearly 10,000 jobs over the next five years, as Essar Power Ltd and Arham SEZ (I) Pvt Ltd secure in-principle approvals for projects in Devbhumi Dwarka and Kutch districts.

“Both Essar Power and Arham recently received an in-principle approval for their projects in Gujarat,” Dnyaneshwar B Patil, Zonal Development Commissioner for Special Economic Zones told the businessline on Wednesday.

Essar Power has received in-principle approval for setting up a multi-sector SEZ at Kajurda village in Devbhumi Dwarka district over 56.65 hectares. The company has proposed an initial investment of ₹50 crore and expects exports of about ₹17,629 crore, while generating around 894 direct and indirect jobs over five years.

“Essar plans to build a bio-fuel complex for manufacturing Aviation Turbine Fuel (ATF) and other alternate fuels,” he added.

Meanwhile, Arham SEZ (I) Pvt Ltd has secured in-principle approval for a multi-sector SEZ at Vadala near Mundra port in Kutch district.

Spread across 94.19 hectares, the project entails investments of about ₹230 crore and is expected to generate exports of nearly ₹10,000 crore while creating around 9,000 direct and indirect jobs over the next five years.

“They are planning to set up a Free-Trade Warehousing Zone,” Patil said adding that the approvals are valid for one-year and final notification will take place later.

The proposed projects come as Gujarat strengthens its position as India’s leading export manufacturing hub, with the state’s operational SEZs accounting for 21 per cent of the country’s total SEZ exports.

The new proposals build on the strong performance of Gujarat’s existing SEZ ecosystem. Exports from the state’s 24 operational SEZs rose from ₹1.79 lakh crore in FY15 to ₹3 lakh crore in FY26, a growth of nearly 67 per cent over the period.

Investments in these zones increased from ₹1.22 lakh crore to ₹2.28 lakh crore during the same period, while employment more than tripled from around 63,000 to 2.22 lakh.

“Our focus is to increase employment generation through SEZs by 10-20 per cent every year. We are trying to give more thrust to the manufacturing sector as it is required for employment generation,” Patil said.

The IAS official said Gujarat is also emerging as a semiconductor manufacturing destination, with facilities promoted by Micron, CG Semi, Kaynes Semicon and Tata Electronics being notified as “captive SEZs” earlier this year.

The state continues to have sizeable land available for industrial expansion, including 3,514 hectares in Adani Ports and Special Economic Zone (APSEZ), along with parcels in Aqualine SEZ, GIDC Gandhinagar Electronics Park and Aspen SEZ.

“While an additional 86 acres of land is being acquired for expansion of Kandla SEZ, there is ready-to-allot land available across operational SEZs,” Patil said.

However, the growth story has not been uniform across all sectors. Parts of Gujarat’s textile-focused SEZ ecosystem are facing headwinds, prompting authorities to initiate de-notification of certain land parcels.

Patil said the process of de-notification of plots at Surat Apparel Park SEZ in Sachin is currently underway, while a proposal for partial de-notification of Ahmedabad Apparel Park SEZ is also being processed.

“The textile players are passing through a rough patch and are finding it difficult to continue,” Patil said. The move underscores the challenges facing export-oriented textile units amid weak global demand and margin pressures, even as sectors such as semiconductors, engineering and petrochemicals continue to attract fresh investments into Gujarat’s SEZ ecosystem.

Published on June 17, 2026