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Gujarat Hydrocarbons Gujarat Hydrocarbons

and Power SEZ Limitedand Power SEZ Limited

Promoted by Assam Company (Promoted by Assam Company (EstdEstd. 1839 ) . 1839 )

Member : Duncan Macniell Group, UK . Member : Duncan Macniell Group, UK .

Structure of the presentationStructure of the presentation

1. Introduction

2. India – A Favored Destination

3. Gujarat – Investment Destination

4. Advantage SEZ

5. GHPSL Profile

5. Our Gujarat Presence

6. Energy sector

� Energy Potential

� Our scope of activities

7. A Glimpse of Assam Company

Gujarat Hydrocarbons and Power SEZ LimitedGujarat Hydrocarbons and Power SEZ Limited2

Gujarat Hydrocarbons and Power SEZ LimitedGujarat Hydrocarbons and Power SEZ Limited

Concept of SEZConcept of SEZ’’ss

• SEZ’s are designed to stimulate trade and attract larger foreign investments

• They are Trade Facilitating enclaves and an engine for economic growth

• Supported by robust infrastructure and complemented by attractive fiscal package

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WelcomeWelcome to Gujarat Hydrocarbons & Power SEZ Limited to Gujarat Hydrocarbons & Power SEZ Limited

A unique project conceptualized as a :

One-stop destination covering the entire bandwidth of Hydrocarbon Value chain and Energy Resources (Conventional & Non-Conventional), located at Villayat Industrial Area, Bharuch, Gujarat.

To fuel progress.

For the world. For the economy. For all stakeholders.



India India –– A Favored DestinationA Favored Destination

• In recent years, India has emerged as one of the leading

destination for investors from developed countries.

• This attraction is primarily due to lower cost of manpower and

good quality production

• India is the only country in the world with a separate Ministry of

New and Renewable Energy (MNRE)

• MNRE is currently deliberating a draft national Renewable Energy

Policy for India which proposes a national renewable portfolio

standard (RPS) requiring 10% of Indian electricity to come from

renewables by 2010 and 20% by 2020.

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• Renewable energy remains a small fraction of installed capacity,

yet India is blessed with over 150,000MW of exploitable

renewables.

• India has a vast supply of renewable energy resources, and it has

one of the largest programs in the world for deploying renewable

energy products and systems.

• India is today ranked fourth globally for installed wind capacity as

well as second for Biogas generation.

• Thanks to its location and geography, India enjoys abundant

potential to all renewable energies.

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• India is one of the countries most involved in developing the use

of renewable energies and is trying to make the opportunity for

investors more attractive than costly.

• With the increasingly favorable regulatory and policy

environment along with a growing number of entrepreneurs and

project developers, India ranked as the third most attractive

country to invest in the renewable energy after USA and

Germany, in the Ernst and Young Country attractiveness indices.

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Destination GujaratDestination GujaratIndiaIndia’’s key growth drivers key growth driver

Gujarat Investment DestinationGujarat Investment Destination


1. Robust InfrastructureAirports

There are 11 airports under the operational jurisdiction of Airports Authority of India (AAI), including one international airport located at Ahmedabad, connecting Gujarat with key cities across USA, EU, Asia, as well as with other Indian metropolitan cities.

Rail & Roads

71% of the road network in the state is surfaced. Total road length is 73,619 kms and total length of railways is 5,186 kms (8.20% of India).

Dedicated Freight Corridor

Government of India plans to develop a Dedicated Freight Corridor (DFC) linking Delhi, Mumbai, Kolkata and Chennai. Gujarat accounts for 38% (564 km) of total DFC length (1,483 km). The influenced area of 150 km on either side of DFC is being developed as “Delhi Mumbai Industrial Corridor” (DMIC).

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3. Strategic location � Situated on the west coast of India, Gujarat is one of the

leading industrial states of the country.

� Covers a geographical area of 1,96,024 sq km and accounts for 5.96 % of the total area of India.

� Has proximity to Mumbai, the financial capital of India.

� Is gateway to the rich, land-locked northern and central hinterland.

� Has access to all the major port-based countries such as UK, Australia, China, Japan, Korea, Gulf region etc.

� Has the longest coastline of 1600 kms in the country.





4. Thriving industrial state

� Has demonstrated high industrial growth of 12.5% in the last 5 years.

� Is home to over 800 large industries and 320,000 Micro, Small & Medium Enterprises.

� Has reported an annual average growth of 9% in the last 3 years.

� During the same period, has posted an average industrial growth of 15%, higher than other states.

� Has been the ideal destination for several leading MNCs, including BASF, Bayer, DuPont, GE Plastics, Solvay, Cairn Energy, Shell, British Gas, Huber etc.

� Accounts for 25.8% of the country's total investment.

� Contributes 15.59% to the total value of output added by the manufacturing sector of the country.

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Gujarat – The emerging Power Hub

• Gujarat has been ranked second overall performance of power

sector in India as per the Power sector rating report (2005) of Crisil.

• The installed capacity of Gujarat has increased from a capacity of

385 MW in 1996 to 9628 MW in 2008 and has achieved 100%

electrification stage.

• There are 23 Power Plants located in Gujarat which includes 9

Thermal power plants, 9 gas power plants, 4 hydro power plants

and 1 atomic power plant.

• The private sector contributes more than 25% in the total installed

capacity of power in Gujarat.

• Gujarat is one of the favored state for renewable energy

investments


Industrial Strengths

• Availability of Coal Bed Methane reserves of approximately 600

bn cubic meters

• Availability of lignite reserves to the tune of 2140 million tons

• Extensive power distribution and transmission network having

about 880 sub-stations.

• Transmission network of about 31,012 CKms

Key players across the sector,

• Torrent power

• Essar power

• Gujarat Paguthan Energy Corp. Pvt. Ltd.

• Adani enterprises ltd.

• Tata Power


SEZ AdvantageSEZ Advantage

Advantage SEZAdvantage SEZ

• A designated duty free enclave and to be treated as foreign territory

for trade operations and duties and tariffs

• No license required for import

• Manufacturing, trading or service activity allowed

• SEZ unit to be positive net foreign exchange earner within three years

• Performance of the units to be monitored by a Committee headed by

Development Commissioner and consisting of Customs

• No fixed wastage norms

• Full freedom for subcontracting including subcontracting abroad

• Duty free goods to be utilized in 5 years

• Job work on behalf of domestic exporters for direct exports allowed

• No routine examination by Customs of export & import cargo

• No separate documentation required for Customs and Exim Policy

• In house customs Clearance

• Support service like banking, post office, clearing agents etc. provided

in Zone Complex


Advantage SEZAdvantage SEZ

• Developed plots and ready to use built up space will be made available to the unit holders to commence operations immediately

• No foreign ownership restrictions in developing zone infrastructure and no restrictions on repatriation.

• 100% Direct Foreign Investment through automatic route in SEZs and full and free repatriation of export proceeds permitted.

• Duty-free import/local procurement for the purpose of establishment and maintenance of the unit.

• Single Letter of Permission (LOP) for both manufacturing and trading activity.

• Supplies from DTA to SEZ units treated as exports. Domestic supplier may claim DEPB in lieu of drawback or drawback.

• Unlimited DTA sale on payment of full duties for manufacturing units.


SEZ Fiscal BenefitsSEZ Fiscal Benefits


Customs and Excise :

• SEZ units may import or procure from the domestic sources,

duty free, all their requirements of capital goods, raw materials,

consumables, spares, packing materials, office equipment, DG

sets etc. for implementation of their project in the Zone without

any license or specific approval

•

uty free import / domestic procurement of goods for

development, operation and maintenance of SEZ units

•

oods imported / procured locally duty free could be utilized over

the approval period of 5 years

•

omestic sales by SEZ units will now be exempt from SAD

ncome Tax :

•

00% Income-Tax exemption for first 5 years and 50% for next 5

years thereafter and 50% of the ploughed back export profit for 19

SEZ Fiscal BenefitsSEZ Fiscal Benefits


Foreign Direct Investment :

•100% foreign direct investment is freely allowed in

manufacturing sector in SEZ units under automatic route,

except prohibited items

• No cap on foreign investments for SSI reserved items

Central Sales Tax Act :

• Exemption to sales made from Domestic Tariff Area to SEZ

units

Service Tax :

• Exemption from Service Tax to SEZ units

Off-Shore Banking (OBUs) :

• Setting up of Off-Shore Banking Units allowed in SEZs

• OBUs entitled for 100% Income-Tax exemption for 3 years &

50% for next 2 years

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GHPSL ProfileGHPSL Profile



Location Advantage – Bharuch

� Bharuch is located in the southern part of Gujarat,

near the Gulf of Khambhat in Arabian Sea.

� Dahej Port, operated by Gujarat Maritime Board

(GMB), has made significant contribution to

facilitate industrial growth in the district.

� Excellent port connectivity with the presence of

Dahej port makes it an investment destination in

port & ship-building activities.

� Centrally located within the industrial belt, Dahej is

an ideal location in Asia to serve north, west and

central India and international destinations such as,

Middle East, Africa, Europe and North America.

� The district has a large number of industrial estates

and Special Economic Zones (SEZs).

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LOCATION

GHPSL LocationGujarat Hydrocarbons and Power SEZ LimitedGujarat Hydrocarbons and Power SEZ Limited



Extensive connectivity - Road, Rail, Air & Port:

� Road Connectivity:

Connected to NH-8-Ahmedabad-Mumbai and State Highway.

Direct road connectivity to the nearest railway tract and port.

Arterial roads connecting the SEZ to the National Highway and Expressway.

� Rail Connectivity: Nearest Rail Station - Bharuch.

� Airport Connectivity: Vadodara (80 kms).

� Port Connectivity: Dahej (all-weather port).

� Area falling within the zone of PCPIR (Proposed Petroleum, Chemical & Petro Chemical Investment Region).

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Robust infrastructure

Modern infrastructure support and amenities at par with industrial estates in other global markets, including:

� Efficient transport facilities within the SEZ and to & from the city area.

� Environment-friendly zone.

� Uninterrupted power supply.

� Extensive crude, petro-product, gas pipeline network at the project site.


Our Gujarat presenceOur Gujarat presence



108 hectares of land for dedicated SEZ for “Energy” including New

and Renewable Energy (additional acquisition of 200 Hectares of landunder process)

Area

Dedicated SEZ for “Energy” including New and Renewable Energy for providing major equipments, ancillary/auxiliary equipments, machinery, spare

parts, consumables, warehousing, storage, technology, services and R&D Type of SEZ

Formal approval received .Status

EnormousInvestment

Opportunities

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Energy Sector companies and Ancillary industriesTarget Clients

Approx. 1000 MM USD per annum, when fully operational.Export

Potential


For around 15,000 personnel during construction & development, besides indirect employment from infrastructure service.

Employment Potential


Commercialization targeted by 2010-2012.Project

Timeline

GHPSL SEZ SCOPEGHPSL SEZ SCOPE

Forms of EnergyForms of Energy


• Primary & Secondary Energy

• Commercial & Non-Commercial Energy

• Renewable & Non-Renewable Energy

Primary Energy :

Stored in Nature

Example : Coal, Oil, Gas Biomass, Nuclear Energy

Thermal Energy stored in earth

Secondary Energy :

Example : Coal, Oil & Gas, Converted into Steam and

Electricity

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Forms of EnergyForms of Energy


• Commercial Energy :

Example : Electricity, Lignite, Coal, Oil and Natural Gas

• Non-Commercial Energy :

Example : Firewood, Agrowaste, Solar, Animal Power, Wind

• Renewable Energy :

Example : Wind Power, Solar Power, Geothermal Energy,

Tidal Power & Hydro-Electric Power

• Non-Renewal Energy :

Example : Coal, Oil & Gas

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Energy ScenarioEnergy Scenario


Assuming, optimistically that by 2031-32

• Domestic coal production to rise 3.5 times the value of 03-04 to

reach 525 Million Tonnes oil equivalent (MMTOE) per annum

• Domestic + equity oil 100 MMT per annum

• Domestic Gas production including CBM – 116 MMTOE per annum

• 75% of 150000 MW hydro & 63000 MW of Nuclear potential to

deliver 118 MMTOE of primary energy

India’s import dependence would still rise to 36 – 47% compared to

30% in 2003-04

Source : Energy coordination meeting – paper by Dr. Kirti Parekh

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Opportunities and ChallengesOpportunities and Challenges


• Huge potential for development of market ; different forms of

Energy

• Environmental issues – main concern

• Pre-eminence of Coal – Coal & Lignite in abundance but of poor

quality

• India’s reliance on new & renewable energy to increase manifold

• Tremendous scope to manufacture clean, New & Renewable

Energy Products

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IndiaIndia’’s Requirements Requirement


• Energy needs to fuel a sustained 8% annual growth, to rise by atleast

5.2–5.9% annually

• Energy to GDP elastaticity to be around 0.8, 0.75, 0.67 respectively in

two-three decades

• Thus Primary Commercial Energy required to increase to 13441

MMTOE to16200 MMTOE

CURRENT COMMERCIAL ENERGY MIX

Coal : 50 – 60%

Oil : 30 – 35%

Gas : 9%

Nuclear & Hydro : 4%

Requirements by 2031 – 32

Coal to increase by 4 – 5 times

Oil & Gas to rise 4 – 5 times

Nuclear & Hydro to 8 – 10%

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• Manufacture all items and components related to Energy &

New & Renewable Energy

Coal :

• Coal & Lignite in abundance but poor quality

Scope :

• Make it usable, as it pollutes atmosphere and source of

greenhouse effect

• Manufacture filters for power industries

• Scrubbers

• Nitrogen Oxide Removal Equipment

• Sulphur Dioxide Removal Equipment

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Gas :

• Gas market growing in India, both LNG as well as Natural Gas

likely to be available as source of energy

Scope :

Manufacture gas turbines, steam turbines, Cogeneration plant &

other, utility equipments, Kits for CNG, LNG etc.

Wind :

• India second world’s fastest growing market Wind Energy

potential in Gujarat 7362 MW Total

• Total Potential India : 65000 MW

Scope :

Manufacture wind mills, wind turbines, wind pumps for agriculture

and other utility equipments like wind blades and towers etc.

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Solar :

• India a tropical country – Huge potential for Solar Energy use

Scope :

• Manufacture Solar Power Plants – 40 MW, Electrical Solar Systems

to Power the Grid Solar Photovoltaic for Cell Technologies for

domestic use; Solar Electric Generators, Solar Vacuum Tube, Solar

Fridges, Cooker, Inverter etc.

Biomass :

• India rich in Biomass

• Potential around 19500 MW

• Gujarat Potential 200 MMV

Scope :

• Manufacture Biomass treatment plants & Biomass gasification

plant

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Nuclear:

• Aims to provide 25% of electricity needs by 2050 in India

• Signing of nuclear deal allows access to uranium

Scope :

• Manufacture Nuclear Heat Exchangers, Heavy Walled Vessels,

Nuclear upgraded Instruments, Nuclear Steam Generators,

Primary components for Nuclear Plants etc.

GHPSL SEZ SCOPEGHPSL SEZ SCOPE -- New Energy DevelopmentNew Energy Development


Manufacture, Develop and Market

• Advance battery techniques, Lithium-ion, NIMH Batteries, double

layer capacitors

• Ultra capacitors – for Consumer Electronics

• Energy efficient star compliance equipments for offices,

Computers, Heating & Cooling System, Lighting, Automobiles,

Assembly Plants, Waste Water Treatment etc.

• Proton Exchange Membranes

• Hydroelectric Turbines, Micro Hydro Generator

• Carbon Credit Business (CDM Project)

Assam Company Limited Assam Company Limited Always a PioneerAlways a Pioneer



A Glimpse of Our Background

Backed by a pioneering 167-year-old history, Assam Company Limited, founded in 1839:

� Is the flagship company of the Duncan Mcneill Group, UK.

Historical Background

� Was formed at a meeting of distinguished British merchants and Indian luminaries such as Prince Dwarkanath Tagore (father of Noble Laureate Rabindranath Tagore), Babu Motilal Sil and others in London on February 12, 1839, with a capital of $500,000.

� Immediately after formation, merged with The Bengal Tea Association, a company formed in Calcutta.

� From 1844, the company was on an upswing and in recognition of its pioneering excellence, it was granted a Deed of British Parliament and was awarded the Royal Charter by Her Majesty Queen Victoria in 1845.

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A Glimpse of Our Background

� In 2005, Mr. David Dewherst, Hon'ble Lt. Governor of Texas, USA, presented the "Wooden Hammer of Texas" to Dr. KK Jajodia, the Chairman of Assam Group of Companies.

� Declared its first dividend in 1846.

� Erstwhile group Company was the first to find oil in Asia, 2nd in the world – after oil discovery in Pennsylvania.

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Profile

� Is one of India’s leading companies with business interests in Tea, Oil & Gas and Infrastructure.

� Is a quality producer of tea, operating 16 factories, 19 tea estates and gardens spread over 12,000 hectares.

� Provides employment to over 40,000 persons, along with housing, medical aid, education etc to them and their dependants.

� Has participating interests in six assets in the Assam-Arakan basin in the north east India, one of the most prolific basins in India.

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� Is entering into tie-ups or collaborations for Foreign Direct Investment for various projects relating to Oil & Gas.

� Re-entered the Hydrocarbon industry in 1994, post liberalization of the Indian economy.

� Operates three fields independently under a service contract with ONGC.

� Has a Joint venture with Austin Exploration Ltd., a Texas based company, in two Onshore Blocks and two Gas assets in US and two exploration blocks in Australia.

� Has dedicated team of national and international team of professionals, technocrats, consultants and associates.

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The opportunity is truly energizing!

And the potential for growth and investment

really explosive!

So let’s join hands in the march to progress.

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Our Scope of ActivitiesOur Scope of Activities


Thank You

Contact Information

Developer Company: Gujarat Hydrocarbons

& Power SEZ Ltd.

Address: VIPPs Centre, 3rd Floor, GK – II,

New Delhi – 110 048

Chairman’s Secretariat

Tel.No. : +91 11 406 10100 Fax : 406 10 122

E-mail : [email protected]

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Our Scope of ActivitiesOur Scope of Activities

Documents

Gujarat Hydrocarbons and Power SEZ Limitedassamco.com/ENERGYSEZ.pdf · Thermal power plants, ... • Torrent power ... Wind Power, Solar Power, Geothermal Energy, Tidal Power & Hydro-Electric