Transcript Electrical SEZ

Baroda Electrical SEZ©
Abhay Developers Pvt Ltd
© Dr Rajesh Khajuria
TEAMPro Limited
UK – India
Electrifying Future ©
Promoters
• Abhay Developers Pvt Ltd, Baroda (SPV)
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BRG Group: Mr Bakulesh R Gupta, Chairman
Mr Sargam Gupta, MBA (UK), Director
IT SEZ, Schools and Real Estate business
Rs 100 Crore Net worth
Rs 200 Crore Baroda Knowledge City: IT / ITES
SEZ approved by Government of Gujarat.
• Dr Rajesh Khajuria, Director, TEAMPro
Limited, London UK / Baroda India.
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Presentation Scheme
• 1. India’s Electrical Industry in World: 4
• 2. Electrical Industry in India: Slide 5-9
– Hydro, Ultra Mega Power, Transmission, Rural.
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Future Power Scenario:
10-13
Power Capacity Addition:
14-15
FDI and Exports in Electrical Industry:16-23
Baroda’s Potential in Elec. Industry: 24-27
Project Details:
28-35
Why TEAM? Knowledge Partners: 36-37
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Electrical Industry
• India has in the world the…
• 5th largest electricity generation capacity.
• 5th largest telecom services market US$ 17.8 billion revenues in FY 2005.
• 2nd largest road network - 3.3 million km.
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Hydro-Power Unexploited
• There are still 1.6 billion people in the world
with no access to electricity, almost all of them
living in developing countries.
• 23% of total technically feasible hydropower
potential is exploited in China, 82% in USA,
65% in Canada, 73% in Germany, but only 5%
in Africa and 13% in Asia as a whole.
» Source: UNIDO
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Hydro-Power 150,000 MW
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Ultra Mega: 20,000 MW
Source: Economic Survey, Government of India
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Transmission: 60,000 KM
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Rural: 56% Yet to Elec.
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Future Power Scenario 1
• Interactive Session on Current and Future
Power Scenario held on 25th May 2006 in New
Delhi. Present:
– Hon’ble Minister of Power Shri Sushil Kumar
Shinde
– Shri R.V. Shahi, Secretary Power
– Shri Anil K. Agarwal, President, ASSOCHAM,
– Shri Rakesh Bakshi, Managing Director, Vestas
RRB,
– Dr. V.K. Garg, CMD, Power Finance corporation
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Future Power Scenario 2
• Need for huge capacity addition in the power
sector since only 34,000 MW expected during
the 10th Plan (2002-2007).
– 100,000 MW required by India.
• For 50,000 MW hydro initiatives already
launched, progress needs to be stepped up.
– State Governments need to expedite procedures for
land acquisition and other approvals and the Centre
needs to ensure effective coordination, so as to have
matching transmission capacity coming up.
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Future Power Scenario 3
• To Privatise 50% of New Power
Capacity.
• To ensure contribution of renewable
energy in the overall energy scenario of
the country…
– 2% to 20% by Y 2020 in India.
– 5% to 20% in USA and Europe.
» Sources: ASSOCHAM, TEAM Research.
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SEZs Need Electricals
• 150 SEZs approved by BOA, Ministry of
Commerce, Government of India shall
need Power and Electrical equipments on
a massive scale
– Worth Rs 25,000 Crore over Y 2006-2011
approx.
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Power Capacity Addition 1
Result: Massive Demand for Electrical Equipments
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Power Capacity Addition 2
Result: Massive Demand from Thermal-Hydro Sectors
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Foreign Investment
• India's foreign exchange reserves stand at
US$ 165 billion (12.08.2006).
• India has become the second-most
attractive destination for foreign direct
investment (FDI) among manufacturing
investors…
» Source: as per A T Kearney's latest FDI
Confidence Index rankings.
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FDI in India
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FDI Rise Due to Elec.
• “FDI flows to India rose by 36% in
2003-04, mainly due to Electrical
Equipments, Computer Software,
Electronics and Services sectors.”
» Source: India Budget, Ministry of Finance,
Government of India
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Electrical Export Share
• India's …
• Total Exports account for less than 1% of Global
Trade.
• Power Generating Machinery & Equipment
Exports account for only 0.2% of Global Market.
• Electrical machinery, apparatus and appliance
also account for 0.2% of Global Trade.
– Result: Tremendous Scope to increase Export of
Electrical & Power Equipment, Apparatus, and
Appliances
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Engineers Strength:India
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Electrical Machinery
• Electrical Machinery industry’s share in
India’s ‘Value Added Registered
Manufacturing’ has increased from 5.82%
in 1970s to 8% by 2004.
– Result: It is one of the very few sectors with
33% rise in overall share.
– Value Added Registered Manufacturing’s share
is 66% in total Manufacturing sector.
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Auto Electrical Parts
• Automobile with Auto Parts industry has a
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Turnover of Rs 1440 Billion,
Investment of Rs 800 Bn,
Exports of Rs 1000 Bn,
Employment for 45 mn direct, 100 mn
indirect.
• Auto & Parts Industry is growing @ 16%
p.a. in Production and 35% p.a. in Exports.
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Select Elect. Production
•Provisional figures.
•Global companies are eying expansions in India.
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Baroda’s Potential 1
• Baroda has India’s three largest and oldest
Electrical Companies, all growing fast:
– ABB Ltd (Swiss giant) – Locomotives to
Complete Electrical systems on turnkey basis.
– Novino Batteries Ltd (Matsushita, Japan) –
Largest in Dry Cell Batteries, Torches etc.
– Jyoti Ltd – Mini Hydel Power Stations, Motors,
Switchgears and Rotating Electrical
Equipments.
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Baroda’s Potential 2
• 80% of Transformers of Gujarat State are
manufactured in Baroda’s 100 SSI Units.
• Over 500 Electrical & Engineering Units.
• Electrical Supplier-industry like CRGO
Laminations, Control Panels, PCBs,
Lighting, Battery Cell, Switches, Wires &
Cables etc have developed locally.
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Baroda’s Potential 3
• Halol 40 KM from Baroda has expanding
cluster of General Motors (GM).
• Pune’s thriving Auto industry with 9 major
Automobile plants source Auto Parts from
Baroda and Halol.
• Baroda is known for Engineering Design (L
& T Chiyoda) and Manufacturing industry.
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Government Agencies
• Electrical Research And Development Agency
(ERADA), Government of Gujarat/India, Baroda
– for testing and certification.
• Gujarat Engineering Research Institute (GERI),
Baroda.
• Gujarat Energy Development Agency (GEDA),
Baroda – Nodal Agency of Government of Gujarat
for Non-conventional Energy (Wind, Solar, etc).
• Gujarat Electricity Board’s Head Quarter, Baroda.
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Electrical SEZ Location
• 100 Hectare (250 Acre) Land at GIDC
Savli, Baroda
• Airport – Baroda (Domestic) – 15 km
• Ahmedabad (International)
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-- 115 km
Railway Station – 20 km
Dry Port (CFS Oppo. GSFC) – 15 km
Ports–Kandla (440 km), Mumbai (440 km)
Manpower: 100,000 Graduates in 200 km.
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SEZ Infrastructure
• No Pollution Zone.
• Developed Land with Plots of ¼ - 5 acres each.
• Direct Road access from Expressway BarodaAhmedabad), only 12 km from Baroda.
• 100% Power (GEB/Gas/Wind), Internal Roads.
• Water, Engineers and Skilled Manpower.
• 100% Security, Regulated Entry, Insurance,
International Banking & Finance, Post Office,
Transport, Warehouses, Offices, Parking,
• Garden, Service Apartments.
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SEZ Project Cost
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Land – 100 Hectares
Development
Buildings
Utilities & Power
Equipments
P & P Expenses
Total
(Rs Million approx.)
250
250
300
550
500
150
2,000 (200 Cr)
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Sources of Finance
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(Rs Million)*
500
300
1,200
2,000 (200 Cr)
Equity
FDI
Term Loans
Total
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* (Approx.)
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Export & Employment
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(Y 2006-11)
(Rs Million)*
Project Investment in SEZ:
2,000
SEZ 100 Units’ Investment: 8,000
Total Investment in SEZ:
10,000 (1,000 Cr)
Electrical/Power Sector
Investment (10 Years):
2000,000 (2 Lakh Cr)
Exports expected from SEZ: 20,000 (2,000 Cr)
Employment Potential in SEZ: 20,000 Persons
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* (Approx estimates).
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Permissions
• Land Acquisition.
• Gujarat SEZ Act, 2003.
• SEZ Act 2005 and SEZ Rules 2006,
Ministry of Commerce, Government of
India.
• In-principle / Formal Approval.
• Notification in Official Gazette.
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SEZ Project Planning
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Feasibility Study by TEAM
Applications by TEAM
Fund-raising Tie-ups by TEAM
Government Permissions
Construction Permissions
Implementation Team
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Implementation Schedule*
• Project Planning
• Permissions-SEZ
– Sub-Total
3 Months
3 Months
6 Months
• Implementation
• Total
54 Months
60 Months
* (approx.)
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Why TEAM?
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Since 1983 in India, then London UK.
220 Projects Advised successfully.
Electrical Industry Knowledge & Clients.
Total US$ 10 Billion investment catalysed.
Invited by Governments of India, UK,
Singapore, HK, Thailand, Sudan, Dubai,
Abu Dhabi, Oman for development
assignments in technology and trade.
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Knowledge Partners
TEAMPro Limited, UK
Dr Rajesh Khajuria, Director
MBA (Fin), PhD (Management), CMC, FIMC, MIoD
[email protected], www.TeamPro.org
India Baroda M: 094260 75402
London T: +44-20-8866 4345 (Sunil Vaghani)
Electrifying Future ©
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