Manufacturing of - investuttarakhand.com · 2018-09-06 · *Draft project report only for reference. ... mobility which might transform the automotive industry like never before

Manufacturing of Electric Vehicles(Passenger Cars)

Automobile Sector

Government of UttarakhandDisclaimer: The content in the profile is being vetted by the department and is liable to change

Page 2 06 September 2018

Contents

Advantage India

Uttarakhand – Key Credentials

Uttarakhand – Competitive Advantage

Project Outline

Infrastructure Availability

Project Financials

Approvals & Clearances

Policies, Schemes & Incentives

Key Contacts

*Draft project report only for reference.


Advantage India

► Growing concerns for environment and with rapid advancements in technologies and

innovative newer business models are transforming the automotive business

► One of the key facets of such a change is the rapid development in the field of electric

mobility which might transform the automotive industry like never before

► The Electric Vehicle (EV) market is divided into the following types:

► Battery EV (BEV): Vehicles that operates solely on a charged battery

► Fuel Cell EV (FCEV): Fuel cells use stored hydrogen to produce electricity to run the vehicle

► Plug-in Hybrid EV (PHEV): An ICE vehicle complemented with a battery that can be charged

by plugging into an charging outlet

► Hybrid EV (HEV): An ICE vehicle with a battery that cannot be plugged in to be charged.

Battery is charged by capturing energy through rengenerative braking

AUTOMOBILE: ELECTRIC VEHICLE SEGMENT


ADOPTABILITY PATTERN OF ELECTRIC VEHICLES


Advantage India

ELECTRIC VEHICLE – INDIA SCENARIO


► India is set to become the 3rd largest automotive market by 2020 and currently has one of

the lowest vehicle penetration in the world making it a viable market for EV Manufacturers

► The EV market in India is at its nascent stage and is dominated by two and three-

wheelers; 0.4 million electric two wheelers, 1 million e-rickshaws and less than 10

thousand electric cars

► The Indian electric vehicle market was valued at USD 1,954 million in 2016, which is

expected to reach USD 6,978 million by 2023, to register a CAGR of 20.61% during the

forecast period

► More than 95% of electric vehicles are low speed and economical; they do not require

insurance, license or road tax which shall be the reason for rise in demand in Indian Market

1954

6978

0

1000

2000

3000

4000

5000

6000

7000

8000

2016 2023

EV Market in India (USD Million)

Source: EV Market in India; Enincon Research, IESA


Advantage India

KEY GOVERNMENT INITIATIVES

ELECTRIC VEHICLE MARKET | POTENTIAL & OPPORTUNITIES


Currently viable market niches for EV:

► Public transit (Some government-assisted battery-operated buses ply on short routes in Delhi

and some other cities now)

► Movement of material and men in large industrial estates;

► Utility services such as postal delivery vans, municipal services, etc. Pick-up vans for

passengers, cargo, repair services, etc. applications in airports, large tourist areas;

► Short to medium range vehicles belonging to governments

The National Electric Mobility Mission

Plan (NEMMP) 2020 was launched in

2013

Faster Adoption and Manufacturing of

(Hybrid &) Electric Vehicles (FAME India)

under NEMMP 2020

National Automotive Testing And R&D

Infrastructure Project (NATRiP)Automotive Mission Plan (2016-26)

2Ws

2 Wheelers are expected to be one of the early adopters of electrification. Highvehicle utilization and easy home or workplace charging would drive the uptakein the commercial 2W segment

3 Wheelers are expected to be one of the early adopters of electric mobility givene-rickshaws have a head start in this space due to their low running cost anemergence of independent assemblers3Ws

High vehicle utilization, route predictability and workplace charging would helpcorporate Passenger Vehicles (PV) fleets take off earlier than private cars. Retailcustomers are expected to go for EVs only once battery prices come down andEVs achieve economies of scale

PVs

Intra-city buses are likely to be electrified early, driven by the support provided bygovernment-run transport undertakings, route predictability and ease of chargingat bus depots. Small Commercial Vehicles (SCVs) and Light Commercial Vehicles(LCVs) are likely to be early adopters in the truck segmentCVs


Uttarakhand – Key Credentials

► The State of Uttarakhand was formed on 9th November 2000 as the 27th State of India,

when it was carved out of northern Uttar Pradesh

► The State is close to the National Capital Region (NCR) and has excellent connectivity with

its neighboring states

► With levels of literacy rate (78.80%) higher than the national average, the State has

abundant availability of quality human resources

► Within a short span of its existence, Uttarakhand has emerged as a significant destination

for investments in manufacturing industry, tourism and infrastructure

► Emphasis is on stimulating all three sectors of its economy (agriculture, industry and

services), to their fullest potential in tandem with the geographic profile of the state

► The secondary sector (Manufacturing) in the state contributes around 50% to the Gross

State Domestic Product (GSDP: 2017-18), much higher than the national average

UTTARAKHAND STATE OVERVIEW


Source: First advance estimates 2017-18, DES, Uttarakhand

Image: Map of Uttarakhand state


KEY HIGHLIGHTS

Well-established industrial base of long-standing and reputed businesshouses


Presence of large number of ancillary units in the districts of UdhamSingh Nagar, Haridwar etc.

Uttarakhand offers locational advantage with close proximity toadvanced as well as emerging markets

Availability of abundant skilled manpower. Uttarakhand SkillDevelopment Mission has trained good number of students underAutomobile Sector

No law & Order concerns in State. Uttarakhand has had a history ofindustrial harmony and boasts of having one of the lowest man-dayslost due to industrial strife in India

Uttarakhand has a good number of automobile and auto-component manufacturers in the

State. Pantnagar and Haridwar have evolved as important auto hubs in the Northern India.

Most of the Auto component units are contract manufacturers. All these manufacturers are

spread across the state with majority of them located in the integrated industrial areas of

Pantnagar and Haridwar.

In addition, there a few private industrial estates managed by private players, which provide

24*7 electricity, Effluent treatment plants, waste management facility, etc. Also, these

industrial estates are very well connected to major cities and hubs through roads and railways.


MAJOR EXISTING PLAYERS


Areas where Major Auto Players & Ancillary units currently exist

► Uttarakhand has large number of ancillary units in the districts of Udham Singh Nagar,

Haridwar etc.

► The state, thus, has all the ingredients to become a leading auto hub in the country


PROJECT SITE – UDHAM SINGH NAGAR

PROJECT AT A GLANCE

Project Name Manufacturing of Electric Vehicles (Passenger Cars)

Location Kashipur, Udham Singh Nagar (District)

Area IIE Escort Farm Kashipur

Focus Sector Automobile Sector

Project Timelines For Pre-Establishment Clearances – 3 MonthsFor Construction Period – 2 YearsFor Pre-Operational Clearances – 6 Months


• Kashipur, Udham Singh Nagar (District) is an indicative location for setting up of

manufacturing unit of Electric Vehicles. However, the plant can be set up in any other

suitable location in Uttarakhand

• The proposed Integrated Industrial Estate (IIE) has 199 vacant plots covering an area of

5,55,758 sq. mt

• Existing major automobile payers in the state are currently based out of Udham Singh

Nagar district

• Kashipur has the advantage of a Broad Gauge (BG) railway line connecting Pantnagar and

Rudrapur, which industries can easily access

• Availability of technically skilled manpower. Udham Singh Nagar district has well know ITI,

Polytechnic and Engineering colleges

Project Outline

Industrial Estates

(Government +

Private)

Ancillary Units

Sub Stations

(176 MVA)11+

35+

250+


Project Outline


PROJECT COMPONENTS

Category Machinery / Equipment Suppliers in Uttarakhand

Engine & Gear Boxes Advik Hi-Tech Pvt. Ltd. Sansera Engg. Pvt. Ltd.

Axels RSB Transmissions (I) Ltd.SPM Automotive Components Pvt Ltd

Door Panels Mayur Industries Ltd.Autoline Industries Ltd

Exhaust Systems Autoline Industries Ltd Syndicate Auto Components

Heating, Ventilating, Air-conditioning and Cooling

Pasio Aircon Pvt. Ltd. Minda Fiamm Acoustic Limited

Seats Harita Seating System Ltd. Auto Fit Pvt. Ltd.

Battery Pilot Industries Ltd Raltronics India Pvt. Limited

Tyres JK Tyre & Industries Ltd. Birla Tyres Pvt. Ltd.

Horn Source Automotive PartsMinda Fiamm Acoustic Limited

Dashboard Mutual Industries Ltd. Pricol Limited

Wiring Harness Minda Corporation Ltd. Indo Asian Simon Pvt. Ltd.

► Typical Electric Vehicle manufacturers use many of the same type of systems and

components as a CV, especially in the body and chassis. However, the powertrain of an EV

is completely different, and its energy storage (replacing fuel tank) becomes a major sub-

system


► Kashipur town is well connected to major districts in the state

► Two national highways passes through the town – NH 309 &734

► Connecting buses are available to New Delhi, Lucknow,

Haldwani, Dehradun, Almora, Nainital, and Chandigarh

► Kashipur Junction Railway station is the nearest railway station

► The town is well connected to most of the towns in the state and

also out side the state including Delhi, UP, Chandigarh etc.,

► Pantnagar airport is the nearest airport from Kashipur. The

airport is located at a distance of ~70 km

► Pantnagar airport is well connected to Dehradun and Delhi

CONNECTIVITY OF KASHIPUR WITH THE MAJOR TOWNS

Air

Road

Rail


Project Outline


Project Outline


COST OF LAND FOR SETTING UP THE PROJECT

IIE Escort Farm - Kashipur

Land Required 20,234 sq. mt.

Prevailing Land Rate 2,500 INR/ sq. mt.

Total Cost of Land 5,05,85,000 INR

*Figure: Map of IIE Escort Farm - Kashipur


Infrastructure Availability


IIE KASHIPUR ESCORT FARM

EDUCATIONAL INSTITUTES IN US NAGAR

► IIM Kashipur Institute is located very adjacent to Kashipur Industrial Estate. The institute

believes in a strong industry connect and has invested in developing relationships with

local industries

► The government polytechnic institutes offer courses on Electronics Engineering which

shall be an added advantage to the industries

► ITI Colleges are located within Kashipur. The Government ITI, Kashipur institute has been

awarded “Best Industrial Institute” in Uttarakhand award by the Ministry of Skill

Development & Entrepreneurship

State of the art Infrastructure

Robust electricity infrastructure

Developed plots of varying sizes

Developed Cable Trench Systems

Storm Water Drainage Systems

Sewer and foot Path Facility within the

Estate

Well developed Roads within estate

Future Knowledge Hub of Uttarakhand

5 Govt. Polytechnic

InstitutesIIM Kashipur

2 Govt. ITI Colleges


Project Financials

*Source: http://www.business-standard.com/article/companies/mahindra-reva-opens-

new-car-making-unit-112082300035_1.html


ESTIMATED PROJECT COST

Project cost: The estimated project cost is INR 45 Cr

Project Capacity: 30,000 units/ annum

The proposed unit will be manufacturing AC-induction motor based electric vehicle. The case

study of the Mahindra Reva Electric Vehicles plant in Bangalore, Karnataka has been

considered to arrive at a ball park figure of the total project cost of the proposed unit.

Following assumptions were made for the calculation of IRR.

► The proportion of Equity and Debt are considered as 40% and 60% respectively

► Rate of Interest as 10%

► Concession period and construction period as 30 years and 3 years respectively

S. No Cost Parameters Cost ( (INR Lakhs)

Construction and Setup Cost

1 Cost of Land 505.85

2 Cost of Building & Civil Work 3,000

3 Cost of Plant & Machinery 1,000

4 Inflation (Assumption) 3%

Revenue Calculation

5 Quantity Sold per year (With 5% increment YoY) 1,000 units

6 Price per Vehicle (With 3% increment YoY) 5.70

Cost Calculation

7 Cost of Vehicles Sold 75%

8 Operation Cost (5% YoY increase in cost) 4%

http://www.business-standard.com/article/companies/mahindra-reva-opens-new-car-making-unit-112082300035_1.html


Project Financials

*Source: http://www.business-standard.com/article/companies/mahindra-reva-opens-

new-car-making-unit-112082300035_1.html


S. No Cost Parameters Cost ( (INR Lakhs)

9 Employee Benefits Cost (10% YoY increase in cost) 5%

10 Admin and office cost 3%

S. No Parameters Cost ( (INR Lakhs)

1 Equity IRR 19.43%

2 Project IRR 17.49%

Project IRR

http://www.business-standard.com/article/companies/mahindra-reva-opens-new-car-making-unit-112082300035_1.html


Project Financials


Manpower Requirement

Technical Staff

Senior Application Engineer 01

Inventory Manager 01

Technical Support Manager 01

Technical Support Engineer 05

Engineering

Chief Technical Officer 01

System Administration 03

Project Manager 02

Quality Assurance Manager 03

Sales & Marketing

VP Marketing 01

Marketing Manager 02

VP Sales 01

Sales Manager 02

Customer Support Representative 04

Administration

HR Manager 01

Admin Assistant 03


Approvals & Clearances (1/2)

Indicative List of Clearances


Sr. No. Name of ServiceAuthority/ Agency/ Office/ Department

officer granting approval

1 Application for Land/ Plot Allotment SIIDCUL

2Application for new connection LT/ HT

line – non domestic/ industrialUttarakhand Power Corporation Limited

3Application for Water Connection

State Infrastructure and Industrial

Development Corporation of Uttarakhand

Limited

4Application for Water Connection

Uttarakhand Jal Sansthan

5 Application for building plan approval State Industrial Development Authority

6Application for Completion cum

Occupancy CertificateState Industrial Development Authority

7

Consent to Establish under Water

(Prevention and Control of Pollution)

Act, 1974

Uttarakhand Environment Protection and

Pollution Control Board

8

Consent to Establish under Air

(Prevention and Control of Pollution)

Act, 1981



9

Consolidated Consent & Authorization

under Water Act, 1974, Air Act, 1981 &

Authorization under The Hazardous and

Other Wastes (Management and

Transboundary Movement) Rules, 2016



10

Application for Pre-Establishment Fire

NOC

(National Building Code, 2005)

Uttarakhand Fire and Emergency Services


Approvals & Clearances (2/2)

Indicative List of Clearances


Sr. No. Name of ServiceAuthority/ Agency/ Office/

Department officer granting approval

11Application for Pre-Operational Fire NOC

(National Building Code, 2005)

Uttarakhand Fire and Emergency

Services

12 Site Plan Approval under Factories Act, 1948 Department of Labour

13Registration of Factories under Factories Act,

1948Department of Labour

14Registration under Uttarakhand Dookan Aur

Vanijya Adhisthan Adhiniyam, 1962Department of Labour

15License under Contract Labour Act,

(Regulation and Abolition),1970Department of Labour

16Registration under GST (Uttarakhand Goods

and Services Tax Rules, 2017)Department of Commercial Tax


Policies, Schemes & Incentives (1/3)

Central Government Schemes and Policies

► Automotive Mission Plan (2016-26)

► National Electric Mobility Mission Plan 2020 (NEMMP)

► Faster Adoption and Manufacturing of Hybrid and Electric

vehicles (FAME)

► Merchandise Export from India Scheme (MEIS)

► Industrial Development Scheme 2017

State Government Schemes and Policies

► MSME Policy 2015

► Mega Industrial & Investment Policy 2015


Central Government Schemes & Incentives

National Electric Mobility Mission Plan 2020 (NEMMP)

Launched in 2013

ObjectiveTo achieve national fuel security by promoting hybrid and electric vehiclesin the country

TargetTo achieve 6-7 million sales of hybrid and electric vehicles year on year

from 2020 onwards

Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME India) under

NEMMP 2020

Launched in 2015

Objective

To allow hybrid and electric vehicles to become the first choice for the

purchasers so that these vehicles can replace the conventional vehicles

and thus reduce liquid fuel consumption in the country from the

automobile sector

Demand Incentives under FAME

Vehicle Segment Minimum incentive (INR) Maximum incentive (INR)

2 wheeler scooter 1800 22,000




Merchandise Export from India Scheme (MEIS)

Launched in 2015

Objective To promote export of notified goods manufactured/ produced in India

Benefits

Rewards under MEIS are payable as a percentage (2, 3 or 5%) of realized

FOB value for notified goods going to notified markets, by way of the MEIS

duty credit scrip. The scrip can be transferred or used for payment of a number

of duties/taxes including the customs / excise duty / service tax.

Vehicle Segment Minimum incentive (INR) Maximum incentive (INR)

Motorcycle 3500 29,000

3 wheeler Auto-

rickshaw3300 61,000

4 wheeler cars 11,000 1,38,000

LCVs 17,000 1,87,000

Bus 30,00,000 (47,000 USD) 66,00,000

Retro fitment category15 % or 30,000 if reduction in fuel

consumption is 10-30%

30 % of Kit price or 90,000 if

reduction in fuel consumption

is more than 30 %

Industrial Development Scheme 2017

Incentive Type Quantum of Incentives

Central Capital Investment

Central Capital Investment Incentive for access to credit (CCIIAC) @ 30% of the investment in plant and machinery with an upper limit of INR 5.00 crore

Central Comprehensive Insurance Incentive

Reimbursement of 100% insurance premium on insurance of building and

Plant & Machinery for a maximum period of 5 years from the date of

commencement of commercial production/ operation

Note: Units which have commenced production on or after 01st of April, 2017 will be allowed to register with DIPP on or before 30th of September, 2018



State Government Incentives

The project site falls in the ‘Category D’ under MSME Policy 2015 for the purpose of quantum of

incentives/subsidies

Incentive Type Quantum of Incentives for Category ‘D’

State Capital Subsidy

15% Maximum up to INR 15 lakhs

Interest Subsidy 5% (Maximum up to INR 3 lakhs

Rebate of Stamp Duty

50% Concession

The project will also be eligible for incentives under Mega Industrial and Investment Policy

2015

Incentive Type Quantum of Incentives

Interest Subsidy

7% for 5 years Investment – Interest50-75 Cr – 25L Max75-200 Cr – 35L Max>200 Cr – 50L Max

SGST Concession

30% for Large and 50% for Mega / Ultra Mega units

*The SGST after adjustment of ITC on sale of finished product (B2C) will

be reimbursed from the date of commencement of production of the unit

Stamp Duty 50% Exemption

Power AssistanceRebate of 1/- per unit on the power bill and 100% rebate on electric duty

for 7 years

Land Rates RebateRebate of 15%, 25% and 30% on SIIDCUL prevailing land rate for Large,

Mega and Ultra Mega Projects respectively

Land Registration Fees

Land registration fee @1/- per 1000/-

ETP Subsidy 30% (up to 50 lacs)

Extra Employment Subsidy

@ 500 P.M. per Male

@700 P.M. per Female

*Note: For more details, kindly visit below links:https://www.doiuk.org/policies.php - MSME Policy 2015https://www.siidcul.com/industrial-policy/mega-industrial-policy-2015 - Mega Industrial & Investment Policy 2015

https://www.doiuk.org/policies.php

https://www.siidcul.com/industrial-policy/mega-industrial-policy-2015


Key Contacts


Investment Facilitation Centre

AddressDirectorate of IndustriesIndustrial Area, Patel Nagar, Dehradun, Uttarakhand

Website www.investuttarakhand.com

Email ID [email protected]

Toll Free 18002701213

SIIDCUL

AddressState Infrastructure & Industrial Development Corporation of Uttarakhand Ltd.IT Park, Sahastradhara, Dehradun, Uttarakhand

Website www.siidcul.com

Email ID [email protected]

Phone +91-135- 2708100

Disclaimer: This project profile is based on preliminary study to facilitate prospectiveentrepreneurs to assess a prima facie scope. It is, however, advisable to get a detailedfeasibility study prepared before taking a final investment decision

http://www.investuttarakhand.com/

mailto:[email protected]

http://www.siidcul.com/

mailto:[email protected]

Documents

Manufacturing of - investuttarakhand.com · 2018-09-06 · *Draft project report only for reference. ... mobility which might transform the automotive industry like never before