Baroda Electrical SEZ © Abhay Developers Pvt Ltd © Dr Rajesh Khajuria TEAMPro Limited UK – India...

Baroda Electrical SEZ© Abhay Developers Pvt Ltd

© Dr Rajesh Khajuria

TEAMPro Limited

UK – IndiaElectrifying Future ©

Dr R Khajuria TEAM 2

Promoters

• Abhay Developers Pvt Ltd, Baroda (SPV)– 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.


Presentation Scheme• 1. India’s Electrical Industry in World: 4• 2. Electrical Industry in India: Slide 5-9

– Hydro, Ultra Mega Power, Transmission, Rural.

• 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


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.


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


Hydro-Power 150,000 MW


Ultra Mega: 20,000 MW

Source: Economic Survey, Government of India


Transmission: 60,000 KM


Rural: 56% Yet to Elec.


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



• 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.



• 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.


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.


Power Capacity Addition 1

Result: Massive Demand for Electrical Equipments


Power Capacity Addition 2

Result: Massive Demand from Thermal-Hydro Sectors


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.


FDI in India


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


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


Engineers Strength:India


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.


Auto Electrical Parts

• Automobile with Auto Parts industry has a – 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.


Select Elect. Production

•Provisional figures.

•Global companies are eying expansions in India.


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.



• 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.



• 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.


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.


Electrical SEZ Location• 100 Hectare (250 Acre) Land at GIDC

Savli, Baroda• Airport – Baroda (Domestic) – 15 km

• Ahmedabad (International) -- 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.


SEZ Infrastructure• No Pollution Zone.• Developed Land with Plots of ¼ - 5 acres each.• Direct Road access from Expressway Baroda-

Ahmedabad), 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.


SEZ Project Cost (Rs Million approx.)

• Land – 100 Hectares 250• Development 250• Buildings 300• Utilities & Power 550• Equipments 500• P & P Expenses 150• Total 2,000 (200 Cr)


Sources of Finance

(Rs Million)*

• Equity 500

• FDI 300

• Term Loans 1,200

• Total 2,000 (200 Cr)» * (Approx.)


Export & Employment

(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

» * (Approx estimates).


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.


SEZ Project Planning

• Feasibility Study by TEAM

• Applications by TEAM

• Fund-raising Tie-ups by TEAM

• Government Permissions

• Construction Permissions

• Implementation Team


Implementation Schedule*

• Project Planning 3 Months

• Permissions-SEZ 3 Months– Sub-Total 6 Months

• Implementation 54 Months

• Total 60 Months* (approx.)


Why TEAM?

• 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.


Knowledge Partners

TEAMPro Limited, UKDr Rajesh Khajuria, Director

MBA (Fin), PhD (Management), CMC, FIMC, MIoD

[email protected], www.TeamPro.orgIndia Baroda M: 094260 75402

London T: +44-20-8866 4345 (Sunil Vaghani)

Electrifying Future ©

Baroda Electrical SEZ © Abhay Developers Pvt Ltd © Dr Rajesh Khajuria TEAMPro Limited UK – India...

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