Vous êtes sur la page 1sur 26

Development of

Logistic Park at Dahej

Logistics infrastructure
and industrial area/parks
Government of Gujarat
Contents

Project Concept 3
Market Potential 5
Growth Drivers 6
Gujarat – Competitive Advantage 7
Project Information 9
- Location/ Size
- Demand Assessment
- Market Potential
- Infrastructure Availability/ Connectivity
- Manpower
- Key Players/ Machinery Suppliers
- Innovative Technologies
- Leading Practices & Potential Collaboration Opportunities
- Key Considerations
Project Financials 22
Approvals & Incentives 24
Key Department Contacts 26

Page 2
Project Concept
Logistic Sector Overview

What is Logistic?

Logistic is defined as management of business operations such as acquisition, storage,


transportation and delivery of goods along the supply chain which involves string of activities
through various modes of infrastructure and transport points. Strong economic growth, increase in
domestic and international trade together with increased outsourcing of logistic needs by industries
have driven the logistic sector in India.

What is Logistic Park?


A Logistics park is an attributed area that facilitates domestic and foreign trade by providing
services including warehousing, cold storage, multimodal transport facilities and ICD/ CFS.
Key factors that differentiate a logistics park from a typical ICD/ CFS/Warehouse are
valueǦadded services such as crossǦdocking, customization, stacking and labelling.

Global Logistics Sector – An Overview


 For any country, the annual logistics cost varies between 9% and 20% of the GDP, the figure for
the US being about 9%.
 According to USǦbased Armstrong & Associates, Inc., the global logistics market is currently
valued at USD 3.5 trillion.
 The US logistics market is the largest for a single country in the world capturing oneǦthird of the
world logistics market, although most of the large LSPs are headquartered in Europe. (The US
logistics market is currently valued at USD 1 Trillion)
 The logistics industry is growing very fast in southǦeast Asian countries due to a shift of
manufacturing
g base and increasing
g volumes of exports from these countries.

Growth Rate: 8%-10% p.a. since


2002; 11% for next 5 years

Growth Rate: 15.4%

Source: Development of Logistic Park, IL&FS,2014

Page 3
Project Concept
Logistic Sector Overview

India Logistics Sector – An Overview


Development of transportation and logistics-related
infrastructure such as dedicated freight corridors, In the World Bank’s
logistics parks, free trade warehousing zones, and biennial measure of
container freight stations are expected to improve international supply chain
efficiency. Government reform initiatives, promotion of efficiency, called Logistics
manufacturing and trade, improving investment Performance Index, India’s
climate are expected to transform the industry and ranking has jumped from
drive growth between 2016 and 2020. 54 in 2014 to 35 in 2016
Source: Logistics in India 2016 by ILE
The Indian logistics market recorded US $104.10 billion revenue in 2014, and is likely to reach
revenues of US $150-$160 billion by 2020.Transportation accounts for about 60 per cent of the
market revenues. Demand for project logistics services will be particularly strong in the
manufacturing sector as the Indian Government's push to increase the manufacturing output in the
country will spur infrastructural activities in this space. The total market opportunity for project .
Logistics services in India is estimated to be $150.86 billion for the 2014- 2019

Emerging Logistic Locations in India Planned logistics parks across India

The Government has come up with many By 2014, around 110 logistics parks,
incentives with the intentions to set up multi spread over approximately 3,500 acres, are
modal logistics parks, small, medium and expected to come up across India at an
large are mostly going to be rail linked. estimated cost of US$ 1 billion.

Source: India-Logistics-Sector, Cushman & Wakefield Research


Source: Development of Logistic Park, IL&FS, 2014

Page 4
Market potential & Key
trends
 Indian Logistics Industry is expected to grow at a CAGR of 8.6 percent between 2015 and 2020,
which grew at a CAGR of 9.7 percent during 2010-2015.
 Transportation and Communication accounted for 7.0 percent of the nation’s GDP in 2015,
accounting for around US $130.44 billion.
 The key drivers of this growth are infrastructure investment associated with ports, airports, and
other logistics development plans, domestic demand growth and increasing trade.
Source: Strategic Insight on the Indian Logistics Industry, May 2016

Key trends observed in the Indian logistics industry

 Government initiatives to promote the manufacturing sector and exports are likely to increase
the demand for logistics functions. Trade with Asia, Europe, and North America are likely to
remain major drivers for freight forwarding and transportation companies in the region.
 Major investments by both public and private sectors in the last five years on infrastructure,
technology upgrades and expansion of sea and airport facilities, and dedicated logistics corridor
in the rail network are expected to strengthen the Indian logistics infrastructure.
 The booming e-commerce market in India is bringing in new opportunities for LSPs. The
evolving business model(s) in this space focuses on containing logistics and delivery costs.
 The expected implementation of nationwide uniform GST is likely to transform the distribution
structure of majority of industries as it eliminates the need for dedicated warehouses for each
individual administrative region.

India’s exports are primarily driven by manufacturing products, fuel, minerals and
agriculture products.
The Government of India’s Foreign Trade Policy (2015-2020) aims to increase the value of
trade to US $900 billion by 2020, by aligning with Government initiatives such as Make in
India, Digital India, and Skills India to promote exports growth.
Asia leads the share of trade for India, while America and Europe are the other key
regions. Exports to Asia, Europe, and America accounted 88 percent of the total exports
in 2014.
Source: Strategic Insight on the Indian Logistics Industry, May 2016

Page 5
Growth Drivers

A glimpse into various industrial sectors highlights the anticipated upsurge in trade and commerce
and the consequent growth in the need for a strong logistics industry

India's nominal GDP is expected to grow to USD 3.6 trillion by 2020

By 2030, India's crude steel production is expected to increase by a factor of 4.

The demand for cement in the country is expected to double by 2030

Agricultural output, although reduced in size as a percentage of the economy, is


expected to increase from 207 million metric tonnes (MMT) to 295 MMT by
2020.

The Indian textiles industry is expected to triple from USD 78 billion currently to
US$ 220 billion by 2020.

The share of organized retail is expected to increase from 5 percent currently to


24 percent by 2020

India's industrial energy consumption is expected to double by 2020. In this


scenario, the country will need to mine 2 billion tonnes of coal by 2030 and
transport 75 percent of mined coal. Further, around 30 percent of total
transported coal will have to be imported through ports.

Fished consumer goods, both imported and those produced in India, will have to
be transported to the country's middle-class consumers, which, by 2030, are
expected to increase fourfold from the current middle class population of 160
million

Thus, to sustain and drive economic growth, the movement of goods associated with a mature
economy will require a vastly superior service sector as well as physical logistics infrastructure

Source: Logistics in India 2016 by ILE

Source: Strategic Insight on the Indian Logistics Industry, May 2016 by Frost & Sullivan-Research and Markets

Page 6
Gujarat - Competitive
Advantage

'Petro Capital' of India, contributing significantly to the country's production of


Petrochemicals (62%), Chemicals (53%) and pharmaceuticals (45%).

Gujarat has World’s Largest grass root petroleum refinery at Jamnagar by Reliance
Industries Limited with a crude processing capacity of 1.24 million Barrels Per
Stream Day (BPSD)

Salt Processing 75%


Gujarat credited with India’s First LNG
chemical port terminal at Hazira Diamond
70%
Processing
Geographical advantage due to location Petrochemicals 62%
on the west coast of India
Well connected to the major cities of the Chemicals 51%
world by air and sea routes. The state
has 45 operational ports, 12 domestic
Pharmaceuticals 45%
airports and 1 International airport in
addition to an extensive rail and road
Engineering 18%
network.

Gujarat is one of the leading Industrialized States in India and the


State has attracted cumulative FDI worth US$ 12 billion from April
“Gujarat ranked first in 2000 to March 2015
ease of doing business as
per DIPP report 2015”
Ease of Doing Business: Only state which comply 100% with
Environmental procedures. Gujarat fares highly when it comes to
setting up a business, allotment of land and obtaining a
construction permit

Flourishing Economy: State contributes 7.2% of the Nation GDP and shows leadership in many
areas of manufacturing and infrastructure sectors. Gujarat’s SDP (State Domestic Product) at
current price registered a growth of 11% during the year 2014-15.

Key Industries: Gujarat is the leader in key industrial sectors such as chemical, petrochemical,
auto and its allied sector, pharmaceuticals, engineering, textile, jewellery etc.

Strategic location and excellent infrastructure: Located on the west coast of India, Gujarat is
well connected to the major cities of the world by air and sea routes. The state has 45 ports, 12
domestic airports and 1 international airport in addition to an extensive rail and road network

*Source: Socio Economic Review of Gujarat 2015-16

Page 7
Gujarat - Competitive
Advantage
 38% (564 km) of the 1500 km length of DFC
will pass through Gujarat which includes 62%
of total area of Gujarat (18 out of 33 districts
within the influence area)
 Investment potential for Gujarat is US$ 50 bn
(60% of total investment potential in DMIC)

 Presence of over 1100 manufacturing unit


comprising of small and large industries in
PCPIR including chemical, petrochemical,
PCPIR
engineering, plastic, dyes & pigments, textile
etc.

 The State has received acknowledgments of


2,466 Industrial Entrepreneurs
Memorandum (IEM) filed by entrepreneurs
between 2010 and October 2015 with an
estimated investment of Rs. 6,01,766 Crores

 Gujarat, with 42.6 % of its population residing in


the urban areas, is among the top three
urbanized states in the country

 Gujarat contributes around 17.2 % to the


country’s industrial output whereas the value of
output registered is about 18.5%.

 Gujarat is the one of the power surplus states


in the country as a result it helping in bringing
huge amount of investment from the industries
and tagged as preferred investment destination
in the country

 Gujarat contributes around 19.1 per cent to


India’s total exports of goods in 2014-15.

*Source: Socio Economic Review of Gujarat 2015-16


*Source: DIPP report

Page 8
Project Information

GIDC Overview
Gujarat Industrial Development Corporation (GIDC), established in 1962 by Government of
Gujarat, as the nodal agency to oversee industrial development in the state by setting up
industrial estates and promoting industrial growth. GIDC has established total 202 estates till
date. The primary functions of the corporation are to
1. Identify, acquire and aggregate land in the state suitable for industrial development
2. Plan and develop aggregated land into industrial areas
3. Plotting and allotment of land
4. Providing basic infrastructure in industrial areas
Additionally, to address specific needs, GIDC also develops special infrastructure like water
augmentation and distribution infrastructure, culverts, over bridges, training centres,
warehouses, etc. GIDC also upgrades existing infrastructure facilities in the established
industrial estates periodically. Through the proposed project GIDC intends to upgrade
necessary infrastructural facilities in Saykha Industrial Area which includes a Common
Effluent Treatment Plant (CETP) for different industrial waste/effluent.

Gujarat PCPIR
1
Gujarat PCPIR (GPCPSIR) is a specially
GPCPSIR is located in Bharuch District
delineated Investment Region planned for
establishment of domestic and export led
production facilities for Petroleum, Chemicals
And Petrochemicals. The PCPIR is located in
South Gujarat and has Gulf of Khambhat to
its West, Narmada river & Aliyabet island in GPCPSIR is also located in
DMIC influence area
the South, villages of Vagra and Bharuch in
PCPIR
the East and Bharuch-Dahej railway line in
the North.
GPCPSIR also falls in the Delhi Mumbai
Industrial Corridor (DMIC) influence area.

PCPIR – Petroleum, Chemicals & Petro Chemical Investment Region


GPCPSIR – Gujarat Petroleum, Chemical & Petro Chemical Special Investment Region
Source: GIDC & DMICDC

Page 9
Project Information

Investment Made till date (at


historial cost) Over 100 Investment on Infrastructure
Investment Committed
Functional Units Development

INR 63,651 crores INR 1,05,989 crores INR 15,660 crores


(USD 9.5 billion)* (USD 15.8 billion)* (USD 2.3 billion)*

Chemical port and storage terminal, Dahej PCPIR (one of existing units in PCPIR,
Dahej)

 The terminal port is operated by GCPTCL


 Storage terminal total project cost is INR 830 crore (US$ Existing Tank: 35 Nos.
186 million) Type of storage: Fixed
 The terminal has a facility to store over 3.5 lakhs cubic roof/Floating roof/Fixed cum
meters of liquid chemicals Internal floating roof/Double
 Port has the annual handling capacity of about 2.5 walled storage tank/
MMTPA

Dahej PCPIR Development Plan

*1 USD = INR 67

Page 10
Project Information

Demand assessment
GIDB has carried out an analysis of demand and supply scenario for industrial parks in
Gujarat. GIDB vision 2010 document envisages demand for chemical industrial parks in
the state as 16000 hectares by 2010 and while the supply as 5200 hectares. So, there is a
gap of 10828 hectares. It inferred that, while latent demand exists and though the industry has
good opinion on Dahej as a location, the actual materialisation of demand will take place only when
the projects have been formulated well, technical tie up have been made before site selection is
finalised. This involves substantial lead-time. Source: GIDB Vision Document, 2010

In 2014-15, GIDC allotted land to many investors in PCPIR region and majority of these allottees are
likely to commence production by 2018. That means the demand of logistics and related infrastructure
will increase substantially after 2018.
Last 3 years port traffic data along with new development in the surrounding proposed area are stated
below;
• Petronet LNG terminal with 10 MMTPA capaciy
plus second LNG jetty, with additional capacity of
2.5 MMTPA
Collective capacity: 12.5 MMTPA, Traffic: 9.6
million tons
• M/s Adani Petronet (Dahej) Port Pvt. Ltd. With 2
berths of 440 m Capacity: 11.7 MMTPA, Traffic:
7.9 million tons
• GCPTCL chemical terminal with a capacity of 1.8
TOTAL
April-13 to April-14 to April-15 to MMTPA. (Terminal storage capacity of about 300,000
March-14 March-15 March-16 cu.m. of hazardous liquid & gaseous chemicals)
216.18 270.87 249.14
Capacity: 1.8 MMTPA, Traffic: 1.9 million tons
(Figures in lakh tonnes)
Source: GMB
Key success Factors for Dahej Logistic Park
Dahej Logistic park is more promising in
terms of realization of investment as
compared to other competitors spread
across country due to it’s being a part of
PCPIR and hence having privileged
policies, existing large industrial units
(client base) and strategies location on
DMICDC - which helps to connect with
the other potential clients.

Source: EY Internal research

Page 11
Project Information

Draft Project Plan


A draft master plan for the park development has been prepared considering the land
area available, constraints posed by existing industries and status of development,
requirements from demand assessment and potential users and other issues that have a bearing
on a feasible plan.

Alternative plan has been prepared by realigning the proposed broad gauge railway line as
alternative 2.All the three alternatives provide for modular development without any
significant increase in investment. Depending upon the plot size required by the
prospective users, the plots can be sub divided.

Dahej Logistic Park


proposed location

Proposed Project Components and Area Statement

Particulars Area (Hectares) Estimated Project Cost :


( for GIDC)
Railway Siding 12 Approx. INR 30565 lakhs
Container Stacking Yard (including circulation) 6 (excluding cost of land, 2015)
Warehousing (including circulation) 8
Source: EY Estimates based on GIDC
Truck / Trailer Parking (including circulation) 2 estimates(2013)
Roads & Overall Circulation 4.2
Utilities 1.4
Administrative 0.9
Open / Green Space 3.8
Area for Future Expansion 21.7
Total 60
Note: The above area distribution is indicative only and is variable subject to
fulfilment of Minimum Development Obligations
Source: GIDC

Page 12
Project Information

Proposed Physical Infrastructure in the Logistic Park


The physical infrastructure is expected to be provided in two phases. The first phase will
include the basic minimum infrastructure required for efficient functioning of the industry.

Phase I - The infrastructure will consists of:


 Roads and storm water drains
 A common water supply and distribution system
 Power supply preferably by underground cables.
 Telecommunications
 Fire fighting
 Sewage and Industrial waste Treatment and disposal
 Recycling of waste water
 Street and area illumination
 Landscaping and architectural planning
 Parking areas
 Truck terminal with fuel lubricants, repair and maintenance facilities as well as parking and
security.
 Bus terminal
 Emergency Personnel Housing
 Disaster Management Cell

Phase II - The infrastructure will consists of:


 Broad gauging of the existing railway line and its extension to port based area.
 Warehousing and storage facilities.
 Industry related shopping areas
 Industry related services such as engineering workshop. engineering support services.

The social support infrastructure such as township with all its requirements of education,
recreation, shopping and the numerous requirements would be provided in a separate township
located conveniently near but sufficiently away for safety. The feasibility study for such a
township is already conducted by GIDC with established economic viability.

Page 13
Project Information

Market Potential – Large Client Base

Commissioned Units within PCPIR

Under Implementation Units

Page 14
Project Information

Infrastructure Availability/ Connectivity

The Dahej PCPIR has an extensive outlay of existing infrastructure

 Connected to Delhi – Mumbai Broad Gauge  50 Km of six lane Dahej-Bharuch State


railway line at Bharuch Highway connecting six lane Delhi-
 Bharuch-Dahej guage conversion work Mumbai National Highway and National
complete (INR 349 crores); the route now Expressway
runs for both goods and passengers  Construction of internal roads in Dahej
PCPIR progressing
Proposed
 Delhi-Mumbai Dedicated Freight Corridor Proposed
(DFC) will touch the PCPIR on Eastern Side  Ahmedabad Vadodara National
 Bharuch –Dahej broad gauge line to be Expressway to be extended to Mumbai
connected to the DFC at Davadra Jn.

 Well connected by air: 250 kms from  Adani Port (Dahej) - 11.7 MMTPA
international airport at Ahmedabad; 90  GCPTCL Liquid Chemical Terminal - 1.8
kms from domestic airport at Vadodara; MMTPA
85 kms from domestic airport at Surat  LNG Petronet (Gas Terminal) - 12.5
MMTPA
Proposed  Reliance liquid fuel jetty - 2.12 MMTPA
 Work in progress for Ankleshwar airstrip  Birla Copper bulk cargo jetty - 3.8 MMTPA

New development
 Ro-Ro Ferry Service Terminal by GMB
(construction work started)
 Development of jetty for handling ODC
(Over Dimensional cargo) in Joint Venture
with Dahej SEZ Ltd

Page 15
Project Information

Utilities in PCPIR

Other Facilities in PCPIR


 Telecom: Networks of BSNL and major private companies such as Airtel, Vodafone and Idea,
WLL-BTS are available at Dahej and Vagra
 Skills improvement:: 7 ITIs in PCPIR and within 30 km radius; 3 Skill up-gradation centres
(SUCs) set up by GIDC and private companies such as Essar, ABG Shipyard, L&T etc.

Page 16
Project Information

Manpower requirement

The total manpower requirement for the administration is per Container Freight Station (CFS) 45
numbers. The details of the employees with designation and numbers are given below:Ǧ

Sr
Position name Nos.
No.
1 General Manager 1
2 Duty Officer (Asst. Manager /Executive Grade) 3
3 Executive Engineer Ǧ Maintenance 3
4 Accountant 2
5 General Assistants/Special Grade Assistants 5
6 Stenographer/Typist 2
7 Junior/Senior Assistants 5

8 Electricians 4
9 Forklift operators/Crane operators 8
10 Attenders 3
11 Sweepers/gardeners 4
Total 45

Plant & Machinery (per CFS)

Ware House & Cold Store 6 Numbers of fork lift


Reach Stacker and Forklifts Two numbers (capacity -45 tons and stack 1+4 )
Additional forklifts 3 numbers -handling empty Containers.

Other facilities proposed in the CFS are weigh bridge, Container stuffing forklift, flood lights with
high mast tower and generator for 140 KVA.
Source: EY Internal estimates

Similar parks that have been set up with large FDI

1. Shanghai Petrochemical part (China). Being set up in 2000 Hectares of reclaimed land.
The major companies already attracted to the site are BP AMOCO, Bayer AG, ICI and
NIPPON
2. Singapore Petrochemical Complex
3. Jebel Ali, Saudi Arabia
4. Port Kelang in Malaysia
Source: GIDB

Page 17
Project Information

Technologies and Green Logistics

“Green Logistics” refers to supply chain management policies and strategies to reduce the
environmental/ energy footprint of freight and focuses on material handling, waste management,
packaging and transport.

Intelligent Transport
Systems (ITS)

Automotive CLEAN Vehicle


Components TECHNOLOGIES Technologies
e.g. Light weight e.g. EV, Hybrids etc
materials, Aero
dynamics, tire tech
etc.

Fuel Technologies

e.g. Bio-fuels, Ethanol, CNG, Hydrogen etc.

Intelligent Transport Systems (ITS) are advanced applications of Information and


Communication Technologies (ICT) in transport, to enable users to be safer, more
coordinated, better informed and make ‘smarter’ use of transport networks. ITS integrate
telecommunications, electronics and information technologies

Source:Multimodal Logistics in India: An Assessment, European Business and Technology Centre (EBTC)

Page 18
Project Information

Leading practices and potential collaboration opportunities

Logistics aims to achieve reduction of inventory, economy of freight, reliability and consistency in
delivery performance and minimum damage to products. Learning from the worldwide state of the
art practices would help in reducing costs, increase the overall efficiency within the system and
reduce the environmental impacts of logistics. The projects or strategies mentioned below strived
to achieve some or all of these in various ways and would serve as a learning lesson as the Indian
logistics market builds up momentum to take the country forward in this century.

SmartWay

 SmartWay is an US Environmental Protection Agency (EPA) driven initiative that was launched
in 2004 as a series of strategies to reduce transport emissions by creating incentives to improve
supply chain fuel efficiency.
 It functions as collaboration between freight shippers, carriers, and logistics companies to
voluntarily achieve improved fuel efficiency and reduced emissions from freight transport.

CIVITAS

 The CIVITAS Initiative (“City-Vitality-Sustainability”, or “Cleaner and Better Transport in Cities”)


was launched in 2002 to introduce measures and policies towards sustainable urban mobility.
 The goal of CIVITAS is to achieve a significant shift in the modal split towards sustainable
transport, an objective reached through encouraging both innovative technology and policy-
based strategies.
 Several of the projects under this initiative were in the logistics sector, encourage the use of
cleaner freight vehicles and are developing solutions to better coordinate freight logistics,
including efficient goods distribution, the PIPE§NET system for city logistics, and distribution
centre for perishable goods.

Source:Multimodal Logistics in India: An Assessment, European Business and Technology Centre (EBTC)

Page 19
Project Information

Leading practices and potential collaboration opportunities

Combi-Road
 Combi-Road is a new concept from the
Netherlands for the surface transport of
containers and uses specially designed tracks
which can be constructed as separate roads or
as extra lanes alongside existing motorways.
 The containers are pulled on semi-trailers by
unmanned automatically controlled electrical
vehicles.
Source: Google

SMARTFREIGHT
 SMARTFREIGHT (Smart freight transport in
urban areas) was a project aimed to make
urban freight transport more efficient,
environmentally friendly and safe through
smarter use of the distribution networks and
improved delivery and return-load systems.
 The basic idea was to integrate urban traffic
management systems with freight management
and on-board systems.
Source: Google

Clean Urban Transport for Europe (CUTE)


 The European Commission undertook the Clean Urban Transport for Europe (CUTE) project
to develop and demonstrate an emission-free and low-noise transport system, including the
accompanying hydrogen production and refuelling infrastructure.
 The multimodal freight theme incorporates the movement of freight in one loading unit or road
vehicle, which uses successively two or more transport modes without goods handling during
modal changes. Multimodal passenger transport covers the use of different modes in a door-
to-door journey chain, with the focus on modal integration in a seamless journey
Source:Multimodal Logistics in India: An Assessment, European Business and Technology Centre (EBTC)
Page 20
Project Information

Learning from worldwide best practices

 Streamlining customs processes and freight tariffs


 Fostering trade agreements
 Greater process automation
 Use of improved and stateof-the-art technologies including internet,
 GPS and inventory management Increase use of outsourcing partners (3PL)
 Better freight consolidation
 Use of environmental friendly processes, technologies and products to reduce carbon
footprint.

Key considerations

1. Logistics in India is dominated by a large number of fleet operators and warehouses and
therefore small capacities and poor technologies.
2. In addition, poor maintenance of equipment and facilities including roads result in low average
trucking speed of 30–40 kmph, overloading of trucks, inefficient turnaround times at ports and
airports and poor intermodal connectivity. All these issues hinder an efficient multimodal
logistics network around the country.
3. Despite these issues, logistics has a bright future in India. India has the geographical
advantage of being well positioned to emerge as a hub for a variety of products.
4. However, for a strategic growth in this industry, longstanding issues like abolition of octroi levy,
improvement in road and rail infrastructure, creation of modern warehouse facilities and
streamlining of customs formalities need to be improved. Provision of value added service,
which are basically unique and add efficiency and effectiveness to the basic service capabilities
of the firm.

Page 21
Project Financials

Project cost
The project cost is arrived taking into account three components:
Transfer price (GIDC) - (TP-GIDC_ for land )
1. Common Infrastructure Development Cost (CIDC) for common site
infrastructure that is to be charged on the basis of unit of area sold
2. User specific facilities cost (USFC) that be developed based on users
requirement and recovered from them / funded from their sources based on the unit of facility
to developed. Items included are :
• Water supply and distribution
• Effluent collection, conveyance and disposal
• Railway siding
• Construction of housing complex etc.
Total cost of the project is estimated as INR 1587.81 crore

FY 2011 FY 2015
INR Crore INR Crore

Land Price 205.5 305.65


Common Infrastructure
320.92 477.32
Development Cost
User Specific Facilities
541.11 804.83
Cost
Total 1067.53 1587.81
Source: EY Estimates based on GIDB estimates (2011)
Source: World Bank, 2016
http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=IN

The key ratios for CIDC are given below: The means of finance envisaged is as
follows:
Debt Equity Ratio : 1.59: 1 Means of finance
Rs. In crores
Debt to non-debt ratio : 0.47: 1 Fy 2011 Fy 2015
Source
Total Total
Equity to total cost : 20.08% GIDC 205.50 305.65
Loan to total cost : 31.99% SPC / (Equity) 64.44 257.46
User finance to total cost : 47.93% Loan 102.65 410.16
Project investment will be made in a phased FI/Banks 0.00 0.00
manner and sources will also be raised Use Finance 694.93 614.54
accordingly. Total 1067.53 1587.81
Source: EY Estimates based on GIDB estimates (2011)

Page 22
Project Financials

Project Implementation Structure


Issues relating to privatisation of Industrial parks have been discussed in Chapter 8.1 "Gujarat
Infrastructure Development Act 1999" has list various models for privatisation and of these,
the feasible ones for Dahej Industrial park are:

1. Build, Own, Operate and Maintain Agreement (BOOM)


2. Joint Venture Agreement (JVA)

While both are feasible models, JVA should be accorded highest priority as fits more into the
vision envisaged for GIDC. (Ref. GIDC Bid summary Document -2012)

The Project is proposed to be implemented in a joint venture format between the Authority
and the joint venture partner (“Developer”) selected through competitive bidding process through
formation of a proposed Joint Venture Company (JVC) by executing a Joint Venture Agreement
(“JVA”) between the Authority and the Developer, as a conforming party.

GIDC, GOG
Developer
(Authority)

Project Site Lease Deed Joint Venture Agreement


(JVA)

Joint Venture
Company (JVC)

Execution/
Implementation

Lock-in Period (3 years)

Handover to
Subsidiary of GIDC
or GOG

Proposed Project Structure for Logistic Park

Page 23
Approvals & Incentives

Approvals

Existing Development Guidelines


¾ Zone: Industrial
¾ Permissible FSI/FAR – 1.20
¾ Maximum Permissible Ground Coverage – 40%

Development guidelines of Gujarat Petroleum, Chemical & Petrochemical Special Investment


Region Development Authority (GPCPSIRDA) or any other concerned Authority / Department
of GoG., are applicable for the development work. All development work shall confirm to the
Development Plan proposals and the provisions made under these regulations.

Acceptance by the Authority to be complied on fulfilment of the following requirements:

 Permissible built-up area


 Permissible floor space index
 Height of a building and its various stories
 Permissible open spaces enforced under regulations, C.P., Marginal spaces, other open
spaces, set backs etc.
 Permissible use of land and built spaces
 Arrangements of stairs, lifts, corridors and parking
 Minimum requirements of high-rise buildings including N.O.C. from Fire Officer/Fire
Safety
 Consultant as appointed by the Appropriate Authority
 Minimum requirement of sanitary facility and other common facility
 Required light and ventilation

Source: Gujarat PCPIR, General Development Control Regulations

Page 24
Approvals & Incentives

Key Schemes/ Policies/ Incentives for Investor

Scheme for Financial Assistance to Logistic Park, Gujarat Industrial Policy, 2015

Objective
 To promote and encourage Logistic Park by Private Institutions which aim at upgrading and
improving state infrastructure and to boost economic activity and employment generation

Quantum of Assistance:

 The new logistics park will be provided incentive of @ 25% of the eligible fixed Capital
Investment in building and infrastructure facilities (except land cost and transport vehicles
and other ineligible expenses as mentioned in 1.4) maximum Rs 15 crores
 The Developer of the logistics park eligible for reimbursement@ 100% of stamp duty paid on
purchase of land as required for approved project by SLEC and individual unit
shall be eligible for reimbursement@ 50% of stamp duty paid by them on purchase of plot in
the industrial park

Source: Industries Commissionerate

Page 25
Ministry of Environment, Forest and Climate Change (MoEF), Government of India
www.moef.nic.in
Department of Industrial Policy & Promotion (DIPP), Government of India
www.dipp.gov.in

Department of Chemicals & Petrochemicals, Government of India


www. chemicals.nic.in
Gujarat Pollution Control Board (GPCB)
www.gpcb.gov.in

Gujarat Industrial Development Corporation


www.gidc.gov.in
Industries & Mines Department
www.imd-gujarat.gov.in

Office of Industries Commissioner


www.ic.gujarat.gov.in

Industrial Extension Bureau


www.indextb.com

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

Gujarat Industrial Development


Corporation
Address:
Udyog Bhavan Block No.4, 2nd Floor, Sector 11
Gandhinagar -382017 Gujarat ,India
Phone Number : (79) 23250632; 23250634
Website : www.gidc.gov.in