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.

Dr R Khajuria TEAM 3

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

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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

Dr R Khajuria TEAM 11

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.

Dr R Khajuria TEAM 12

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.

Dr R Khajuria TEAM 13

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

Dr R Khajuria TEAM 20

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 – 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.

Dr R Khajuria TEAM 25

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.

Dr R Khajuria TEAM 26

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.

Dr R Khajuria TEAM 27

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) -- 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 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.

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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)

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Sources of Finance

(Rs Million)*

• Equity 500

• FDI 300

• Term Loans 1,200

• Total 2,000 (200 Cr)» * (Approx.)

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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).

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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

• 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 3 Months

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

• Implementation 54 Months

• Total 60 Months* (approx.)

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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.

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Knowledge Partners

TEAMPro Limited, UKDr Rajesh Khajuria, Director

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

rajesh@teampro.org, www.TeamPro.orgIndia Baroda M: 094260 75402

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

Electrifying Future ©