DELHI-MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED In association with

Transcription

1 In association with Dadri Noida Ghaziabad Investment RegIon I

2 Disclaimer The information contained in this document is produced by Halcrow Consulting India Private Limited ( HALCROW ) in association with Synovate India Pvt. Ltd. solely for the use of Delhi Mumbai Industrial Corridor Development Corporation Limited (DMICDC). No part of this publication may be, reproduced without permission of the Consultants or the Clients. Use of this Report or any information contained herein, if by any party other than Client, shall be at the sole risk of such party and shall constitute a release and agreement by such party to defend and indemnify Halcrow from and against any liability for any losses, including loss of profit, revenue or opportunity arising from its use of the Report or reliance upon any of its content. 1

3 Contents I. Executive Summary Introduction Background Understanding the New age Industries Industrial Typology Land Optimization Vibrant Industrial Spaces Quality Industrial Facilities Structure of the Report Site Assessment & SWOT Analysis Site Assessment Site Location & Catchment Site Connectivity Site Topography Existing Physical Infrastructure Development Control Regulations SWOT Analysis Market Assessment Industry Mix for DNGIR Revenue Forecast- Industries in the Integrated Industrial Township Methodology Assumption and Analysis Revenue Estimation Methodology for the Integrated Industrial Township Proposed Industry Mix Biotechnology Hi-tech R & D DNGIR Revenue Potential under the influence of DMICDC Estimation of Area and Employment for DNGIR Micro Market Real Estate Appraisal

4 4 Benchmarking Studies Masdar city, Abu Dhabi Kulim Hi-Tech Park, Malaysia Du Biotech Park, Dubai Shapoorji Pallonji BioTech park, Hyderabad Biopolis, Singapore Lessons learnt from Benchmarking Studies Comparative Analysis of Benchmarks Other Benchmarks Singapore Science Park - Benchmark for land scarce Hi-Tech park development Hsinchu Science and Industrial Park (HSP) Shanghai Caohejing Hi-Tech Park (CHJ) Concept master plan Vision Key Design Principles Sustainable Urban Practices Technology Solutions Performance Parameters for Sustainable Developments Key Structuring Elements Site Topography Green Network & Open Spaces Existing Road Networks and Developments Prime/ Nodal Locations Land Use Land Use Allocation Key Land-use Components of the Concept Master Plan Industrial Use Residential Use Commercial Use Movement & Connectivity Road Network & Hierarchy Potential Transit Opportunities Pedestrian Priority Network Green & Open Space System

5 5.9.1 Key Landscape Strategy Traffic Analysis Traffic Study Methodology Traffic Assessment Phasing strategy Key Considerations for Phasing Phase 1 & Phase 3 & Phase 5 & Physical Infrastructure Water Supply Infrastructure Power Infrastructure Waste Water Infrastructure Other Infrastructure Telecommunication network Gas network Preliminary Cost Estimates Approach to Project Costing Water supply infrastructure Waste water infrastructure Storm water drainage infrastructure Power infrastructure Road infrastructure Summary of Cost Estimate Financial Analysis Land Use and Phasing Methodology Rationale for Phasing Project Structure and Implementation Strategy Detailed Project Implementation Strategy - Stage Detailed Project Implementation Strategy: Stage Project Feasibility Project Feasibility Analysis: Joint Venture Company Project Feasibility Analysis: Private Developer Phase

6 Project Size Project Implementation Timelines and Way Forward Project Implementation Timelines Way Forward II. Annexure 1- Approach for Market Assessment III. Annexure 2- Statutory Clearances IV. Annexure 3- Underlying Assumption for the Integrated Industrial Township Project V. Annexure 4 - Financial Statement

7 List of Figures Figure E- 1: Site location in relation to Greater Noida Master Plan & Dadri Noida-Ghaziabad Investment Region Figure E- 2: Land use distribution Figure E- 3: Concept master plan Figure E- 4: Integrated Industrial Township - industrial zone Figure E- 5: Project structure & implementation strategy Figure 1-1: The Hi-tech Industrial model Figure 1-2: The CICM (Complex industrial complex mega hoist) eight level industrial building with reduced factory footprint and FSI of 2.5 achieved with mega hoist Figure 1-3: The plug-and-play factory complex Figure 2-1: Site location in relation to Greater Noida Master Plan & Investment Region Figure 2-2: Project site and Greater Noida Master Plan Figure 2-3: Site neighboring land uses Figure 2-4: Site location & connectivity Figure 2-5: Existing site connectivity Figure 2-6: Site is characterized by an irrigation canal Figure 2-7: Site is essentially a flat terrain with small villages around it Figure 2-8 : Upcoming residential developments towards north of site Figure 2-9: Presence of Surajpur UPSIDC Industrial Area in close proximity to the Site Figure 2-10: Land ownership details on revenue map Figure 2-11: Slope analysis Figure 2-12: Existing power infrastructure Figure 2-13: Existing water source Figure 2-14: Existing waste disposal system Figure 2-15:Existing and proposed gas network in the catchment of DNGIR Figure 3-1: Revenue analysis Figure 3-2: Revenue potential for biotechnology sector in DNGIR Figure 3-3: Revenue potential for hi-tech sector in DNGIR Figure 3-4: Revenue potential for R&D sector in DNGIR Figure 3-5: Supply absorption trends in Greater Noida Figure 3-6: Segment wise break up in supply Figure 4-1: Land zoning in Kulim Hi-Tech park, Malaysia Figure 4-2: Land use distribution in Du Biotech park, Dubai Figure 4-3: Du Biotech park, Dubai Figure 4-4: Shapoorji Pallonji BioTech park, Hyderabad Figure 4-5: Biopolis, Singapore Figure 4-6: Biopolis, Singapore Figure 4-7: Singapore Science Park Figure 4-8: Singapore Science Park Figure 5-1: SWIG Silver Wrapped in Gold Figure 5-2: Site structuring elements existing site topography and road network

8 Figure 5-3: Proposed movement networks Figure 5-4: Land use distribution Figure 5-5: FSI distribution diagram Figure 5-6: Concept master plan Figure 5-7: Perspective view 1 - concept master plan Figure 5-8: Perspective view 2- concept master plan Figure 5-9: Industrial clusters Figure 5-10: Perspective view of industries within site Figure 5-11: R & D cluster Figure 5-12: Residential clusters Figure 5-13: Commercial & industrial clusters Figure 5-14: Perspective view of commercial cluster Figure 5-15: Commercial centre & residential linked to the central green space Figure 5-16: Proposed road network & hierarchy Figure 5-17: 60m ROW road section with BRT corridor Figure 5-18: 40m ROW road section - Avenue road Figure 5-19: 30m ROW road section Figure 5-20: 24m ROW road section Figure 5-21: Potential transit opportunities within the site Figure 5-22: Institutional and commercial use planned around the central park space Figure 5-23: Open space structure Figure 5-24: Main features of the Central Park Figure 6-1: Daily people trips Figure 6-2: Peak hour PCUs Figure 6-3: Mode-wise peak hour PCUs Figure 6-4: Road network for the Integrated Industrial Township Figure 7-1: Phasing diagram Figure 8-1: Utilities locations proposed within the Integrated Industrial Township Figure 10-1: Project structure & implementation strategy

9 List of Tables Table E- 1: Land use distribution for the Integrated Industrial Township Table E- 2: Broad cost estimates summary Table E- 3: Capital expenditure Table E- 4: Details of revenue - Joint Venture Company Table E- 5: Returns Joint Venture Company Table E- 6: Capital expenditure Table E- 7: Expenditure incurred on part of the private developer Table E- 8: Revenues for PPP concessionaire Table E- 9: Returns for PPP concessionaire Table E- 10: Implementation of initial trunk level infrastructure and development phase under PPP Table E- 11: Implementation of remaining Trunk Level Infrastructure and Development through Land Monetization Table 2-1: Site area and village details Table 2-2: Proposed power projects in state of Uttar Pradesh Table 2-3: Substations in and around the Investment Region Table 2-4: Development Control Regulations for industrial developments Table 2-5 : Development Control Regulations for public/semi-public facilities Table 2-6 : Development Control Regulations for group housing (flatted & cluster type) Table 2-7 : SWOT analysis Table 3-1 : DNGIR revenue potential Table 3-2 : Area and employment estimation for DNGIR Table 3-3: Area and employment estimation for the Integrated Industrial Township Table 3-4: Prevailing weighted average capital values in the micro-market Table 4-1: Kulim Hi-Tech Park- Land use distribution Table 4-2: Land-use distribution for DuBiotech park, Dubai Table 4-3: Comparative analysis of benchmarks Table 5-1 : Development programme summary Table 5-2: Proposed Road Designations for the Integrated Industrial Township project Table 6-1: Daily people trips Table 6-2: Employee generation rate Table 6-3: Visitor Generation Rate Table 6-4: Residential trip generation Table 6-5: Peak Hour Traffic % Table 6-6: Traffic composition % of employees Table 6-7: Traffic composition % of visitors Table 6-8: Average vehicle occupancy for employees Table 6-9: Average vehicle occupancy for visitors Table 6-10: Tonnage share % Table 6-11: Mode wise tonnage capacity Table 6-12: Industry wise tonnage output

10 Table 6-13: Total estimated vehicles and PCUs in peak hour Table 6-14: Mode-wise total estimated vehicles and PCUs in peak hour Table 6-15: Lane capacities Table 7-1: Land use phasing Table 8-1: Water demand for the Integrated Industrial Township Table 8-2: Power demand for the Integrated Industrial Township Table 8-3: Waste water generated within the Integrated Industrial Township Table 9-1: Water supply infrastructure cost Table 9-2: Waste water & storm water infrastructure cost Table 9-3: Power supply infrastructure cost Table 9-4: Road infrastructure cost Table 9-5: IT & Broadband infrastructure cost Table 9-6: Broad cost estimates - summary Table 10-1: Land use distribution Table 10-2: Land use phasing Table 10-3: Phase wise employment generation Table 10-4: Risk matrix for Design-Build contract Table 10-5: Capital expenditure Table 10-6: Capital expenditure assumptions & estimates Table 10-7: Yearly funding schedule Table 10-8: Revenue sources Table 10-9: Project Returns Table 10-10: Capital expenditure estimates Table 10-11: Construction cost assumptions Table 10-12: Project funding Table 10-13: Yearly funding schedule Table 10-14: Sources of revenue Table 10-15: Project returns Table 10-16: Capital expenditure Table 10-17: Revenues Table 10-18: Industrial rents Table 10-19: Development Phasing Table 10-20: Project investment Table 10-21: Project implementation timelines

11 List of Abbreviations BRT CPHEEO cusec DFC DMIC DMICDC DNGIR EPE FSI GNIDA Ha ICT IIHT ISBT IR IRC IRR IT ITS KLD KW LCV LPD lpcd lph MAV MLD Bus Rapid Transit Central Public Health and Environmental Engineering Organisation Cubic feet per second Dedicated Freight Corridor Delhi-Mumbai Industrial Corridor Delhi-Mumbai Industrial Corridor Development Corporation Dadri-NOIDA Ghaziabad Investment Region Eastern Peripheral Expressway Floor Space Index Greater NOIDA Industrial Development Authority Hectares Information and Computer Technology Integrated Industrial Hi-tech Township Inter State Bus Terminal Investment Region Indian Road Congress Internal Rate of Return Information Technology Intelligent Transport System Kilolitres per day KiloWatt Light Commercial Vehicle Litres per day Litres per capita per day Litres per Hectare Multi Axle Vehicle Million Litres per day 10

12 MRT MW NCR PCU PRT R & D ROW SEZ Sqm STP UP UPSIDC WTP Mass Rapid Transit MegaWatt National Capital Region Passenger Car Unit Personal Rapid transit Research and Development Right of Way Special Economic Zone Square meters Sewage Treatment Plant Uttar Pradesh Uttar Pradesh State Industrial Development Corporation Water Treatment Plant 11

13 I. Executive Summary E.1 Project Background The Dadri-Noida-Ghaziabad Investment Region (DNGIR) has been identified as one of the seven Investment Regions (IRs) in the DMIC. The development of an Integrated Industrial Township has been selected as one of the strategic project under preparation of Development Plan for Dadri-Noida- Ghaziabad Investment Region (DNGIR) in Uttar Pradesh (UP) sub-region of DMIC. A pre-feasibility for the project has been undertaken under Part A of the Preparation of Development Plan for DNGIR. Lately, a lot of real estate activities have been witnessed in the region without commensurate manufacturing activities. The Integrated Industrial Township is an initiative of DMIC to drive manufacturing activity in the region in order to promote sustainable development. The township will act as a magnet to promote R&D activities, and will subsequently promote core industrial development, in line with DMIC s objective to promote industrial and manufacturing activities in the DNGIR region. The site for the proposed Integrated Industrial Township is part of the delineated site for Delhi-Noida- Ghaziabad Investment Region (DNGIR), planned within the notified Greater Noida Master Plan-2021 area. It has a total site area of Ha (747.5 acres). The proposed township is planned adjacent to the already developed sectors of Greater Noida and hence enjoys the availability of existing and proposed transportation networks and physical infrastructure. It is being planned with state-of-the-art infrastructure and new age planning principles for upcoming industrial townships supported by the surrounding proposed developments including logistics and passenger movement facilities such as the Multi Modal Logistics Hub (MMLH) and Multi Modal Transit Hub (MMTH) part of the site delineated for DNGIR. The land for the delineated site is already acquired or to be resumed by Greater Noida Industrial Development Authority (GNIDA). The location of site in relation to the Greater Noida Master Plan & Dadri Noida -Ghaziabad Investment Region is given in Figure E

14 Proposed site for the Integrated Industrial Township Figure E- 1: Site location in relation to Greater Noida Master Plan & Dadri Noida-Ghaziabad Investment Region Based upon historical and existing trends, inherent advantages of India and UP, existing status of the industry in the State, Government policies, view of industry experts and potential investors, the Integrated Industrial Township has been proposed with new age industry sectors like research and development (R&D), biotechnology and hi-tech electronics industry considered as the potential industry mix for the Industrial Park. Bio-technology planned as one of the key industry sectors in the Integrated Industrial Township, is likely to support allied sectors like food, pharma, healthcare and agriculture present in the UP region. Bio-pharma, bio-services (clinical research), bio-agri, bio-industrial and bio-informatics are some of the key sub-sectors that may be planned as part of biotechnology industries. Hi-tech industries are likely to include sub-sectors like fabrication industries, nanotechnology and optoelectronics. 13

15 The Integrated Industrial Township will also support research and development in key sectors like telecom, electronics, automobile, food, pharma, healthcare, defence research sector which is likely to give a boost to new product development, software development, auto design, drug design and pharmaceuticals, hardware and product design. The project is proposed to act as a catalyst for fuelling the growth of industrial development of the region by attracting skilled human resource at the industrial township and generating direct industrial employment for about 58,000 workers. With a total investment of around Rs. 33,031.4 crore, the site is planned to generate a built-up space of around 6 million sqm. It will be planned as the first comprehensive built environment helping the launch of DMIC Investment Region, and at the same time showcasing the application of future city planning strategies for industrial setups in the region. It will help in strengthening the status of Greater Noida and Noida as a manufacturing destination. It will also encourage creation and growth of new businesses by fostering collaboration and innovation, also enhancing the development, transfer, and commercialization of technology. The project will also help to promote new sunrise industries with value addition to existing industries within the region. In addition to the significant financial returns expected out of the project, the manufacturing hub is bound to generate a series of un-quantified economic benefits as direct benefits and through multiplier effect. The flagship industrial township planned to promote first of its kind vertical manufacturing and stack-up factory setup through innovative technological advancements will target foreign investors for setting up their manufacturing plants in the region. The increased foreign investments will in turn have a ripple effect on the overall economy of the region. E.2 Concept Master Plan As a part of the pre-feasibility report, a detailed concept master plan has been developed through detailed benchmarking, research, demand assessment, and area estimation of various components. The concept master plan focuses to create a new model planned Integrated Industrial Township with all supporting amenities (including residential, education, research, commercial, recreation, offices & administration uses) which would form part of the mixed community proposed within the Integrated Industrial Township. The spatial concept land use plan is illustrated in Figure E- 2 14

16 Figure E- 2: Land use distribution 15

17 Industry pillars like hi-tech, bio-tech, R&D and knowledge services are the key project components of the proposed Integrated Industrial Township. These form the prime catalyst of this development to support a new, symbiotic relationship of community clustering surrounding the industrial development. Uses such as commercial, residential, research, recreation, office and administration are the other important components that form the community cluster within the proposed Integrated Industrial Township. The trunk level infrastructure within the site includes water supply, waste water and recycled water, storm water, power and internal road infrastructure and Bus Rapid Transport (BRT), underground utilities, IT /telecom, and site level landscape infrastructure. The trunk level infrastructure also includes an external Bus Rapid Transport (BRT) connectivity from the proposed Multi-modal Transport Hub at Boraki (part of DNGIR delineated site) to the proposed Integrated Industrial Township. The land use distribution of the Integrated Industrial Township is given in Error! Reference source not found.. Table E- 1: Land use distribution for the Integrated Industrial Township Land use Area (Sq. m.) Area (ha) % BUA (Sq.m.) Industry 1,537, % 3,458,738 Hi tech Industries 638, % 1,435,754 Bio tech Industries 414, % 933,116 R &D 484, % 1,089,868 Commercial Mixed Use 190, % 761,765 Residential 336, % 1,680,848 Utilities 46, % 39,468 Greens & Water Bodies 403, % Roads 471, % Existing Structures 39, % Total Area (Sq. m.) 3,024, % 5,940,818 Total Area (Acres) Acres 16

18 Figure E- 3: Concept master plan 17

19 From the total site area of ha, approximately 50.8 percent of the area has been allocated for industrial use. Approximately 6.3 percent area has been allocated for commercial mixed use that will support the industrial use. Approximately 11.1 percent of the total land under the Integrated Industrial Township has been allocated as residential use. The residential area has been planned along with all requisite facilities, amenities, commercial zones and green spaces. Around 1.5 percent of the area is assigned for utilities and housing facilities such as water works (WW), sewage treatment plant (STP), power infrastructure and auxiliaries. Approximately 30.3 percent of the total area has been allocated for green/ open spaces, water bodies and roads. Large green zones have been provided as breathing areas for the development providing an alternate environment for the industrial workforce within the township. These green zones have also been strategically coupled with major transport nodes, retail and entertainment activities. They are planned as lungs within the residential and institutional areas, helping in creating an internal environment conducive to the surrounding land use. These have also been provided to cater to the needs of the residing population with the major retail and social infrastructure bordering the public parks; hence increasing the access and usability for recreational and cultural activities within the green open spaces. The proposed Integrated Industrial Township is being planned with a focus on new planning concepts trying to achieve an integrated industrial master plan promoting a Work-Live-Play-Learn environment. The combination of vibrant industrial spaces planned with other residential and mixed use commercial uses help to promote a walk-to-work concept in the industrial township. The Integrated Industrial Township is also envisioned with a strong focus on landscape and open space design to enhance the identity and quality of the built environment for the worker and resident population. Land optimization through innovation in industrial clustering and building typologies will also help in achieving higher plot ratios and high-rise lowfootprint facilities to maximize green cover percentage within the proposed Integrated Industrial Township. Figure E- 4: Integrated Industrial Township - industrial zone 18

20 E.3 Broad Cost Estimates Broad cost estimates of the physical infrastructure components are about Rs crore. Additional cost in terms of five percent contingencies and three percent detail design cost & quality control & project monitoring cost is also considered to arrive at a realistic cost of about Rs crore. These additional costs reflect the cost of detailed project report preparation, project monitoring and management during implementation, environmental monitoring and other administrative costs. The cost of the physical infrastructure in the initial phase 1 & 2 of the development is about Rs crore (including contingencies). As evident from the table, maximum capital investment is required in first four phases when most of the internal infrastructure will be required. Per acre development cost of the proposed Integrated Industrial Township comes to about Rs.1.09 crore/acre. Table E-2 provides the summary of the cost estimates. S.No. Table E- 2: Broad cost estimates summary Cost Phasing Component (Rs. Cr) Phase 1&2 Phase 3&4 Phase 5&6 Total 1 Water Supply Infrastructure Sewerage and Recycling 2 Infrastructure Strom Water Drainage Infrastructure Power Infrastructure Transportation Infrastructure Underground Common 6 Utility Infrastructure Site Level Landscape IT & Broadband 8 Infrastructure Sub-total Contingencies (5%) Detail Design Cost & Quality Control & Project Monitoring Cost at implementation stage (3%) TOTAL

21 E.4 Project Structure & Implementation Strategy The project is envisaged as an Integrated Industrial Township to promote new age hi-tech Industries, biotech industries, and R&D industries along with commercial and residential facilities essential to support such townships. A detailed project implementation strategy is worked out so as to successfully achieve the objective of the Integrated Industrial Township. The strategy is formulated keeping in mind the following factors: Initial support to industries so as to facilitate promotion of new age industries in the township; Ensuring that the supply of industrial units coincides with the market demand, and that there is no over-supply; Flexible approach flexible to adjust strategy based on market dynamics; and Capture unprecedented future potential Stage 1 Government of Uttar Pradesh DMIC Trust Joint Venture Company Provides for Land and Trunk Level Infrastructure Stage 2 Phase wise implementation of Project Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Figure E- 5: Project structure & implementation strategy 20

22 The project is proposed to be executed in two stages Project Implementation - Stage 1: The Government of Uttar Pradesh and the DMIC Trust will form a Joint Venture Company (JVC formed as an SPV for the project), to provide for land and trunk level infrastructure. Project Implementation - Stage 2: Invitation to Private players by the JVC to execute the project in different phases. Project Implementation Strategy- Stage 1 The stage 1 of the project implementation shall involve the following key steps: The Government of Uttar Pradesh and the DMIC Trust will form a Joint Venture Company JVC as a special purpose vehicle, to provide the land required for the township, and to build the trunk level infrastructure essential for the township. The trunk level infrastructure within the site will include water supply, waste water and recycled water, storm water, power, internal roads and Bus Rapid Transport (BRT), underground utilities, IT/telecom, and site level landscape infrastructure. The trunk level infrastructure will also include an external Bus Rapid Transport (BRT) connectivity from the proposed Multi-modal Transport Hub at Boraki (part of DNGIR delineated site) to the proposed Industrial Township. It is envisaged that the shareholding of both the equity holders of the JVC would be 50% each. The JVC shall provide the required land and set up the basic trunk infrastructure on the site so as to make the project attractive for private sector participation. The private participant will then need to incur only the capital cost required for the proposed project facilities. This will enhance the marketability of the project in turn encouraging private participation in the project.. The role of JVC shall be critical for the successful execution of the project as it will help in co-ordination with various other government agencies. Key action task at this stage shall be that offsetting up of trunk level infrastructure. A consultant would be appointed by the JVC to carry out the preliminary design of the trunk level infrastructure. It is proposed that the trunk level infrastructure be executed as a Design-Build (DB) contract. Project Implementation Strategy - Stage 2 The project implementation stage 2 is planned to be executed into six different phases. The phase 1 is projected to be for five years, i.e. FY 2016 to FY 2020 and the phase 2,3,4,5 and 6 will be of 5 years each, and starting from FY 2021 (details are provided in Table E-10 and Table E-11). Phase 1: The JVC will invite a private developer/ (s) on PPP basis to create signature buildings for hitech, bio-tech, R&D sector and an incubation center through a transparent bidding process. A transaction advisor shall be appointed by JVC to execute this process. The concession will be awarded for a period of 90 years; The private developer shall further develop the buildings and lease the industry space to the end users. A mechanism will be derived to share these rentals between JVC and the private developer; 21

23 In addition, JVC may give right to develop commercial and residential space after the development of industrial space, to the developer to enhance the developer s financial feasibility; and The private developer shall also transfer some built-up space to JVC that shall be used as an incubation center to promote innovative start-ups and to help create an industrial eco-system. In addition, JVC may also use this space either for its self-use or lease the space to the end-users The detailed bidding parameters and transaction structure shall be finalized at the bid stage by the selected Transaction Advisor. The Transaction Advisor shall be responsible for project structuring including bundling/un-bundling and bid process management such as preparation of bidding documents including concession agreement, handling pre-bid conferences, bid evaluation and selection of bidders. The relevance of this phase shall be to trigger the development of township and to create signature buildings to act as a symbol of new age industrial infrastructure in the area. The successful implementation of this phase will act as a primer to attract industries to the Integrated Industrial Township and also facilitate the demand augmentation for subsequent phases. Phase 2, 3, 4, 5, and 6: It is proposed that the JVC shall carry out land monetization in phase 2 to phase 6, wherein the JVC shall monetize the available unutilized development potential to recover its cost of land and trunk level infrastructure. The strategy will help JVC to gauge market sentiments that shall help JVC to strategize the land monetization based on the market forces. In addition, JVC will also be able to evaluate the performance of PPP process in phase 1 and may carry out the execution in the next phases through Public Private Partnership approach. E.5 Project Feasibility The project feasibility has been evaluated from the perspective of: Joint Venture Company The Private Developer involved in Phase 1 development For the purposes of evaluation, the following scenarios have been considered: Phase 1 The private developer selected shall develop industrial space to the tune of 3.7 million sq. ft. Private developer shall quote a fixed rental to be retained, as a bidding parameter. Any rental over and above this fixed rental shall be shared equally between the JVC and private developer. The developer quoting the minimum lease rental shall be selected. The minimum achievable fixed rental considered for the purpose of evaluation is Rs. 25 per sq. ft. per month in the base year. This is in line with the prevailing market trends. The private developer shall be given rights to develop and market residential and commercial development potential worth 3.0 million sq. ft. and 1.0 million sq. ft. respectively. JVC shall sub-lease the 0.2 million sq. ft. transferred to it. For the purpose of evaluation it has been considered to be leased at a rate of Rs. 25 per sq. ft. per month. 22

24 Phase 2 to Phase 6 Land Monetization approach has been considered for the phase 2 to phase 6 for the JVC Project Feasibility Analysis: Joint Venture Company The role of Joint Venture Company shall include Providing land and trunk level infrastructure Receiving rentals from the office space transferred to JVC in Phase 1 Additional rental received on the leasing of industrial units in Phase 1 Land monetization activities from Phase 2 to Phase 6 A financial feasibility assessment was carried out for JVC considering the cash flows from all these activities. Capital Expenditure Based on the broad brush cost estimates, the total investment is estimated at Rs.1,714.7 crore. The JVC shall provide the costs of land and trunk level infrastructure. The details of expenditure are as follows: Table E- 3: Capital expenditure Particulars Amount (Rs. Crore) Land Trunk Level Infrastructure 1,097.5 Water and Sewerage 81.6 Recycle water Infrastructure 9.4 Power Infrastructure Other Trunk Level Infrastructure Total 1,714.7 The Trunk Level Infrastructure costs are inclusive of 5.0% p.a., 5.0%, and detail design cost, quality control & project monitoring cost at implementation 3.0%. The total capital expenditure for land and trunk level infrastructure is Rs.1,714.7 crore out of which Rs 1,180.8 crore will be incurred during the period ( to ) and the balance capital expenditure of Rs crore for land and trunk infrastructure will be incurred from to and The trunk level infrastructure has been phased out to match the development of Integrated Industrial Township. The last two phases of trunk level infrastructure will be implemented by appointing separate DB contractor. The capital expenditure shall be funded by the State Government and the DMIC Trust as equity. Each entity shall contribute matching equity of Rs crore and the balance funding of Rs crore shall be met by utilizing the internal accruals of JVC. 23

25 Revenues and Operational Expenditure The following are the proposed sources of revenues for the Joint Venture Company: Rentals from the building transferred to JVC in Phase 1; Additional Rentals, if any from the industrial buildings in Phase 1; and Land Monetization proceeds Operational Expenditure Table E- 4: Details of revenue - Joint Venture Company Particulars Amount (Rs. crore) Rentals Land Monetization 6,592.4 Total Revenues 7,155.9 Key operational expenditure for JVC is infrastructure maintenance expenses. Annual operational expense is considered as 2.5% of total costs of the assets (as per industry benchmarks). Total expenditure for annual maintenance is estimated as Rs crore over the next 30 years. Though some component of this annual expenditure may be recoverable from future users of the facilities, for the purpose of this evaluation a zero recovery is assumed. Feasibility Analysis Based on the assessment, the project is found to be technically implementable and financially viable. The returns from the project from the viewpoint of the JVC have been summarized in the following table: Table E- 5: Returns Joint Venture Company Particulars Column1 Equity IRR (%) 8.3% Equity NPV (Rs 12% Payback Period 16.8 In addition to the financial viability, the project should also be evaluated from economic point of view. The manufacturing hub is bound to generate series of un-quantified economic benefits as direct benefits and through a multiplier effect. 24

26 Private Developer Phase 1 The role of private developer in Phase 1 shall include Building of signature buildings for new age industries; Building of industrial space to be transferred to JVC; Development and marketing of industrial space to the desired industries; and Building of commercial/ residential space, provided to enhance the returns Capital Expenditure The capital costs are estimated based on broad cost basis. These costs represent the capital expenditure on the part of private developers, and are exclusive of the costs for land and trunk level infrastructure. Expenditure on building infrastructure represents estimated expenditure on construction costs. The estimates for capital expenditure are as under: Table E- 6: Capital expenditure Particulars Amount (Rs. Crore) Hi tech Bio tech R&D Commercial Residential Total 2,167.8 The total capital expenditure for the project is estimated to be Rs 2,167.8 crore to be incurred by multiple developers. Funding Leverage ratio is considered as 70.0%, i.e. 70.0% of the total capital expenditure is funded by debt and remaining by equity. The proposed Integrated Industrial Township is planned to incorporate commercial, residential, and industrial developments. Each of these components has a different cash flow pattern on account of its market dynamics; therefore, we have first utilized the cash inflows from the project to pay for the capital expenditure. Thus, capital expenditure is first funded by cash inflows from the project, and then funded by debt and equity in the defined leverage ratio. Post the optimal utilization of the city, the free cash flows are first utilized to repay debt and are then distributed to the equity shareholders. The following table details the expenditure incurred on part of the private developers. 25

27 Table E- 7: Expenditure incurred on part of the private developer Particulars Total Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Capex ,167.8 Funding for interest on debt Less: Accruals from resi sale Less: Accruals from rentals Funding Required ,680.9 Debt ,176.6 Equity Total Funding ,680.9 Debt repayment is linked as a function of cash flow, wherein additional cash balances are first utilized for repayment of debt and then towards equity. Revenues and Operational Expenditures Revenues are considered from the following three sources: Rental Income Industries Rental Income Commercial Residential sale The following table summarizes the total proceeds from these sources of revenues over the project life. Table E- 8: Revenues for PPP concessionaire Particulars Amount (Rs. crore) Industrial Rental 9,924.2 Commercial Rental 4,143.9 Residential Sale 1,239.3 Total 15,307.4 In addition, there may be minimal revenues from parking charges, common area maintenance margins, and advertising rights. However, these revenues are not considered for the purpose of financial analysis. There is no operational expenditure considered for the private developer. The key operational expenditure for private developer is common area maintenance, which will funded by common area maintenance charges collected from the users. Based on the financial analysis, the project is financial feasible for the PPP concessionaire. Feasibility of the project has been ascertained by calculating Internal Rate of Return (IRR) at both the project level and equity level. The table below summarizes the result of the preliminary assessment. 26

28 Table E- 9: Returns for PPP concessionaire Particulars Column1 Project IRR (%) 15.0% Project NPV (Rs 12% Equity IRR (%) 17.3% Equity NPV (Rs 12% Equity return of the project is estimated to be 17.3%, which shall be sufficient to draw private sector participation. We understand that equity IRR of 17.3% is not very attractive for private participation in such kind of projects. However, we feel that the private players will be attracted towards the project considering the magnitude of returns in nominal terms, i.e. an NPV of Rs crore, and the potential to capture part of the upside gains from the project. E.6 Project Implementation Timelines Table E- 10: Implementation of initial trunk level infrastructure and development phase under PPP SI. No. Particulars Formation of SPV 1 Required Approvals from various authorities Transfer of Land Appointment of bidder for 2 Trunk Level Infrastructure on DB basis 3 Construction of Trunk Level Infrastructure 4 Appointment of Private Concessionaires Construction Schedule 5 Industrial Commercial/ Residential Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Table E- 11: Implementation of remaining Trunk Level Infrastructure and Development through Land Monetization S. No. Particulars 1 Trunk Level Infrastructure Construction Schedule 2 Industries Commercial/ Residential S. No. Particulars 1 Trunk Level Infrastructure Construction Schedule 2 Industries Commercial/ Residential Phase 2 Phase Phase 4 Phase 5 Phase Phasing has been done as per demand for Industrial units. The Land monetization activity will however commence prior to start of construction of each phase so that the construction of such units can be completed to meet the demand of such units. 27

29 1 Introduction 1.1 Background Dadri Noida Ghaziabad Investment Region (DNGIR) is one amongst the seven nodes for the first phase of Delhi Mumbai Industrial Corridor (DMIC), to be implemented in a phase wise manner with development of support infrastructure and Early Bird Projects. It is one of the key nodes of DMIC project due to its location at the termination of the Western Dedicated Freight Corridor and its linkages with Eastern and Western Dedicated Freight Corridor (DFC). Location for the Investment Region is being identified between Dadri and Khurja along the DFC feeder link between the two towns. DNGIR is located very close to Greater Noida, an existing city with approximately 2 lakh population. Greater Noida is already a major destination for industrial houses and to harness its future potential, development of an Industrial Township is envisaged here. Some of the key objectives associated with proposal of the Integrated Industrial Township at Greater Noida are: Catalyst for fuelling the growth of industrial development of the Investment Region by attracting skilled human resource at the Integrated Industrial Township; First comprehensive built environment as a launch of DMIC Investment Region, and at the same time showcasing the application of future city planning strategies; Strengthening the status of Greater Noida and Noida as a manufacturing destination in the National Capital Region (NCR); Encouraging creation and growth of new businesses by fostering collaboration and innovation, also enhancing the development, transfer, and commercialization of technology; Fostering collaboration between industries and existing/ proposed educational Institutes; and Promoting new industries with value addition to existing industries. The development of an Integrated Industrial Township is selected as one of the pre-feasibility projects under Part A of the Preparation of Development Plan for Dadri-Noida-Ghaziabad Investment Region (DNGIR) in Uttar Pradesh sub-region of DMIC. The Integrated Industrial Township is envisioned to be developed with a focus on technology centric sectors such as hi-tech industry, bio-tech industry, research & development and knowledge centres. This report documents the draft Concept Master Plan for this Integrated Industrial Township. It includes site analysis, SWOT analysis, development program analysis, potential industry mix and concept land use plan & considerations, overall traffic assessment, proposed development phasing, infrastructure demand & provisioning and block cost estimates. Subsequent steps for taking the project towards implementation are also presented in the report. Selected national and international benchmarks are referred in the report to understand the content and overall environment of similar Integrated Industrial townships. 28

30 1.2 Understanding the New age Industries There has been a paradigm shift in modern day technology from an earlier interest in heavy industry and factory production towards "knowledge" industries and "high and new" technology, consisting largely of information and computer technology (ICT) and biotechnology, with the race on to develop nanotechnology and new materials. This spatial concentration and cluster of Integrated Industrial Township lures investment for scientific activity by building corporate campuses, constructing housing and services for employees. The Integrated Industrial Township is envisaged to be built as demonstration ground for the high and innovative technology that will be produced by these industries and sold externally to meet futuristic market demand. Knowledge Research Incubators Universities Laboratories Skill Development Centre Training Centre Industry Production Manufacturing Bio-technology Renewable energy & low carbon technology - solar, thermal & photovoltaic Semiconductor fabrication Nanotechnology Optoelectronics Automotive Industrial electronics and consumer electronics Information and communication technology Technology Demonstration Figure 1-1: The Hi-tech Industrial model Advanced building technologies Active & Passive energy efficient systems Solar Parks, Photovoltaic roofs Groundbreaking industrial concepts are required to anchor new investments in the region for which requires focus on three aspects: Deepening our cluster knowledge and capabilities; Increasing land productivity; and Expanding our innovation capacity 29

31 The recent hi-tech industrial models are being planned with focus on the above aspects with new planning concepts trying to achieve: Integrated Master planning - promoting Work-Live-Play-Learn environment; Vibrant Industrial Spaces - mixed-use and urban design with focus on landscape and open spaces to enhance the identity and quality of the built environment; and Land Optimization & Intensification through innovation in industrial clustering and building typologies achieving higher plot ratios and high-rise low-footprint facilities to maximize green cover percentage Industrial Typology Vertical Manufacturing Stack-up Factories Stack-up factories are multi-storey and multi-tenanted developments suitable for a range of industrial activities. The factory is designed to have multiple single, double or triple storey factories stacked on top of each other allowing flexibility to choose from different types of units, depending on business requirements. The factory is also provided with 2-level elevated driveway and vehicle ramp that are able to accommodate 45-foot container trucks. Every factory unit is planned to have ground floor convenience via the vehicular ramps and is provided with dedicated private loading area and car park lots. Other common facilities such as passenger and cargo lifts are shared by multiple tenants. These higher rise factories are designed with flexibility to accommodate heavy manufacturing industries on lower floors and embedded and light manufacturing industries operating from upper floors. The various businesses thrive on production flexibility and space utility supported by excellent service back-up and maintenance support allowing companies to focus on their core businesses. The stack-up factory is designed to intensify land use by stacking the traditional standard factories on top of one another to create multi-storey factories. The use of ramps to gain access to upper levels allows occupants to enjoy the same convenience as those at ground floor with regard to loading/unloading of goods. The first stack-up factory built achieved a plot ratio of 2.05 at 3 levels high, as compared to 0.8 for previous low-rise factories, thus allowing each unit of land to be put to use to its full potential to stretch the supply of land. Vertical stacking of units and their smooth operation is dependant heavily on efficient material handling systems at building and estate level. This system has its advantage over standard factories allowing industry clustering, sharing of common infrastructure, and optimizing land utilization reducing capital investment. Varying floor height combination allows choice of different unit types depending on business requirements. Woodlands Spectrum, Singapore is 17 blocks of 9-storey stack-up factories with 2-level elevated driveway, vehicle ramp and ancillary works. China is also building the world s first high-rise factory in Nanjing. The 24-storey industrial and commercial building, to be completed in 2024, is a step ahead in creating vertical manufacturing. The building s ground floor is designed to house amenities and the top 12 floors are planned to be offices. Sandwiched between these levels are 12 industrial floors with 6-metre high ceilings, reinforced floor slabs and heavy-duty lifts that can hold forklifts. Small cranes and conveyor systems will be installed on each floor, creating the possibility for 200-metre-long production lines that 30

32 move between floors. The building can accommodate the production of a wide range of goods, such as mass-produced electronics or refrigerators. Standard factories These are typically low-rise units and meant for a single user. They can be detached, semi-detached or terrace units with ceiling height of up to 7 metres and buildings up to 3 stories. They are designed for businesses in the heavy industries, which require larger ground floor space for the movement and storage of goods. The hi-tech industrial townships are planned as a combination of stack-up and standard factory setups to accommodate the different industry types proposed within the development. The multi-storey and multitenanted industrial buildings are also designed with varying floor height combination to allow choice of different unit types depending on business requirements. The industrial parks thus seek to provide a flexible Industrial environment to accommodate varying business, spatial & operational needs Land Optimization Land being an expensive resource, land optimization and intensification is being sought in industrial planning through innovation in industrial clustering and building typologies achieving higher plot ratios and higher-rise low-footprint facilities to promote vertical manufacturing. Two latest land optimization concepts being introduced in industrial clustering include the Cluster Industrial Complex with Megahoist and the Plug-and-Play Factory. Cluster Industrial Complex with Megahoist The first concept proposes the use of electric overhead travelling hoisting cranes, which are commonly used in port operations, to be placed in the middle of a complex. This would permit containers to be hoisted from ground level to the doorstep on each level of the complex, eliminating the need for vehicular ramps. This mechanism will enable construction of stacked up factories on a smaller plot of land as tenants share the use of the megahoist system and loading bays for moving goods. This reduces land usage by approximately 30%. (Source: JTC Corporation, Singapore) Figure 1-2: The CICM (Complex industrial complex mega hoist) eight level industrial building with reduced factory footprint and FSI of 2.5 achieved with mega hoist 31

33 Plug-and-Play Factory The second concept is a plug-and-play factory, designed to resolve land optimization and intensification issues of land-based industries, particularly those in the biomedical & pharmaceuticals industries, which are built to low plot ratios as their operations cannot be conducted in multi-stacked facilities. Co-location and the use of shared services in this facility reduce land usage. Companies share a centralised warehousing and logistic facilities, multi-story car-parks & amenities and plug into the common underground utility distribution system. Such an integrated facility would enable more factories to be built on a smaller piece of land, cutting down land use by as much as 30%. (Source: JTC Corporation, Singapore) Figure 1-3: The plug-and-play factory complex Vibrant Industrial Spaces The shift towards technology intensive industries and processes within industrial parks, promote a new zoning category for industrial estates as the industrial landscape transit towards well-developed estates with conducive environments. These industrial estates not only sought to meet the functional needs of companies, but also enhance the identity and quality of the built environment. Industrial parks also seek to incorporate environmental sustainability and conservation practices into the built environment of the estate. Besides building upon land intensification efforts to achieve plot ratios as high as 2.5, new elements of planning and design are introduced, such as design and landscaping of public spaces, and provision of amenities. A minimum of 20% of the land area is dedicated to open spaces, with lush greenery, water features and public spaces scattered across the estate. These help to create an environment that facilitate innovation in technology development, particularly for image-conscious companies Quality Industrial Facilities Along with the primary industrial categories, the industrial parks are developed to provide spaces for companies dealing in central distribution, inventory control, freight management and high-tech manufacturing, planned with a central green spine infused with common utilities, water and landscape features and public art, and other dedicated spaces like roof gardens. Due to the nature of the industry, it is important to address security and safety issues through relevant infrastructure including ease of goods transportation. Common-shared facilities (e.g. training centres, amenities, security, fire stations and other essential services) allows resources to be pooled together and used more efficiently. Also, synergies 32

34 between companies are enabled through carefully planned cluster arrangements to allow them to be closely linked together, such that one s output can be quickly and easily transported to another as an input. This clustering strategy also helps to achieve land intensification through saving of land space. The hi-tech industrial parks have thus taken industrial planning to the next level by coming up with new forms of clustering and manufacturing practices that are not necessarily confined to the traditional factory setups and spatial concentration of large footprint, land intensive industries and similar industries in a particular location. This is leading to innovation in new factory typologies including multi tenanted vertical manufacturing and stack-up factories, plug & play industrial parks with the industrial estates providing the physical framework and industrial infrastructure required to generate synergies among different industrial clusters to form a tightly-knit industrial community with a competitive edge. In addition urban design is used as a tool to create desirable industrial workspaces, creating distinctive identities for these new industrial parks. By fashioning a particular image for these parks that differentiates itself from industrial locations in the rest of the world, DMICDC will be able to brand this industrial township and promote its industrial spaces to attract global industrial players to see the Industrial Township as a choice investment location. 1.3 Structure of the Report The pre-feasibility study for the Integrated Industrial Township is structured in the following chapters: Chapter 1: This chapter focuses on introducing the back ground of DNGIR and its objectives that are to be achieved through the Integrated Industrial Township. It also discusses the definition and the essence of a Hi-tech industrial model with a brief detail of the various typologies of built forms that constitute such a cluster. Chapter 2: A detailed site assessment and SWOT analysis constitutes this chapter. The site is assessed in terms of its connectivity, surrounding features, topographical features and other infrastructural requirements. The SWOT analysis is carried out keeping in mind all these aspects of the site along with the futuristic requirements for an Integrated Industrial Township. Chapter 3: Market assessment for such a project is projected in this chapter with revenue forecasts for the various typologies that are expected to be housed within this project. It also provides area programming and an approximate projection of employment with respect to land-use and final product mix for selected industrial sectors. Chapter 4: This chapter, through detailed studies of global benchmarks of the proposed typologies of land use further clarifies the area programming required for particular industries. Inspiration is derived from similar projects (Masdar city, DuBio tech park, Biopolis etc.) that are global benchmarks for similar projects in terms of sustainability and functionality. It further provides insight into the functional aspects along with the infrastructural requirements for the industries. Chapter 5: This chapter sets out the Concept Master Plan for the Integrated Industrial Township, along with the land use development brief. It also provides broad transportation and open space proposals which support the concept plan. It lays out the basic principles and vision on which the proposal is based. Chapter 6: This chapter outlines the overall traffic analysis for the proposed Integrated Industrial Township including the adopted traffic study methodology resulting in the provided traffic assessment. 33

35 Chapter 7: This chapter outlines the phasing strategy for the development of the Integrated Industrial Township Chapter 8: The chapter outlines the broad details for the physical infrastructure required for the project. It includes major infrastructure components like water supply, power supply, storm water & sewerage and supporting facilities like telecommunication and gas. Chapter 9: The broad cost estimation of the required physical infrastructure has been carried out in this chapter. Chapter 10: This chapter deals with the development of a financial model which analyses of broad cost and revenues of the project in order to assess the financial feasibility of the project. 34

36 2 Site Assessment & SWOT Analysis 2.1 Site Assessment Site Location & Catchment The site for the proposed Integrated Industrial Township forms part of the Notified Greater Noida Master Plan-2021, and is located at its south-eastern edge, abutting Eastern Peripheral Expressway (EPE) in the south and Delhi-Howrah broad gauge railway line in the east. The Eastern Dedicated Freight Corridor (EDFC) line alignment is proposed to come parallel to the existing Delhi-Howrah broad gauge railway line in the east. A buffer of 50m has been kept from the existing railway line to keep provision for EDFC line coming along the project site. The Integrated Industrial Township is part of the Delhi-Noida-Ghaziabad Investment Region (DNGIR), with the total delineated area of Ha (747.5 Acres). Figure 2-1illustrates the location of the proposed investment region, DNGIR and Integrated Industrial Township site in the context of Greater Noida Master plan Proposed site for the Integrated Industrial Township Figure 2-1: Site location in relation to Greater Noida Master Plan & Investment Region 35

37 Greater Noida Master Plan sectors: a) Special Economic Zone (SEZ) b) TechZone III c) Ecotech XI A Figure 2-2: Project site and Greater Noida Master Plan Being a part of the notified Greater master plan, the site includes three Greater Noida Sectors falling under the three major land uses i.e. Special Economic Zone (SEZ), Institutional, Industrial and Transport as shown in Figure 2-2. The proposed Integrated Industrial Township is approximately 35kms from Noida City which is one of the significant industrial cities of the region and a major catchment for skilled human resources beneficial for this upcoming development. The site is also in proximity to other major proposed landmark developments of the region such as the integrated transit facility at Boraki (approx. 4km) and the multi-modal logistics hub near Dadri (approx. 6km) that is likely to improve both the passenger and logistics connectivity/movement to this industrial township. The delineated site is also approximately 5kms from the prime commercial centre/central business district and Knowledge parks proposed within Greater Noida master plan. Other major land uses adjoining the Integrated Industrial Township include a large residential zone towards the north-west, industrial and institutional uses on the south-eastern side (Figure 2-3). These existing and proposed neighbouring residential/industrial catchment areas are highly compatible land uses surrounding the proposed Integrated Industrial Township. 36

38 Figure 2-3: Site neighboring land uses 37

39 2.1.2 Site Connectivity Road connectivity The site is strategically located in a wide network of existing and proposed roads including National Highway 91, Eastern Peripheral Expressway and other Greater Noida Master Plan roads providing excellent connectivity to the site from all directions. The site is bound by 80m wide sector road in north and 60m wide road in west. It is also abutting the 400m ROW Eastern Peripheral Expressway (EPE) in the south and is bound by an existing Delhi-Howrah broad gauge railway line in the east. Thus the site is contained within well defined boundaries of major transport corridors that provide excellent connectivity to the site in terms of connecting the site to major existing and proposed developments within Greater Noida area and surrounding development areas. Figure 2-4: Site location & connectivity 38

40 Metro/ Light Rail Transit Connectivity With regard to public transit, the site is located at the distance of 4km from the proposed integrated transit facility at Boraki. The Greater Noida light rail/metro link extending from Noida City into Greater Noida is proposed to be terminated at this multi modal transport hub along with other major public transit facilities including regional railway station and Interstate Bus Terminal (ISBT) planned within the integrated transit facility at Boraki. The proposed development thus has an opportunity to get direct public transit connectivity via bus rapid transit (BRT) corridors and other feeder links planned to connect the site with the major public transport nodes proposed in the region. A light rail metro connectivity may also be planned to the Integrated Industrial Township and Delhi-Noida-Ghaziabad Investment Region (DNGIR) in the future phases of development of the proposed Investment Region (IR). The proposed mass transit link will also provide easy access to existing domestic and international airports within the National Capital Region (NCR), improve connectivity and reduce travel time to New Delhi and other important cities within NCR. 39

41 Figure 2-5: Existing site connectivity 40

42 There is an existing road network planned within the site delineated for the proposed Integrated Industrial Township. These roads may be integrated with the proposed road network within the site. Also, there are a number of minor village roads passing through the site that provide access to various land parcels, existing industrial plots within the delineated site and also provide access to the surrounding villages. Figure 2-7: Site is essentially a flat terrain with small villages around it Figure 2-6: Site is characterized by an irrigation canal Figure 2-9: Presence of Surajpur UPSIDC Industrial Area in close proximity to the Site Figure 2-8 : Upcoming residential developments towards north of site In terms of administrative boundaries, the site falls in the Gutam Budha Nagar district, six villages i.e. Rithori, Raipur Bangar, Dhabra, Gohri Bachera, Ajayabpur and Maycha are part of the revenue boundary of the site. The land has been acquired; however there are a few parcels of land which are still to be resumed to make it a contiguous parcel. Area summary and ownership details of the delineated site are given in the following table: 41

43 Table 2-1: Site area and village details S.No. Village Name Area* (Ha) Acquired Area* (Ha) Area to be Resumed* (Ha) 1 Rithori Raipur Bangar Dhabra Gohri Bachera Ajayabpur Maycha Total * Note: The village wise land and revenue map details - area and land ownership status - are as per information received from Greater Noida Industrial Development Authority (GNIDA) and needs to be verified by the relevant department for any change in status/updates. The delineated site boundary on village revenue maps with land within the site under government ownership are shown in Figure

44 Figure 2-10: Land ownership details on revenue map 43

45 2.1.3 Site Topography Figure 2-11: Slope analysis 44

46 The site for proposed Integrated Industrial Township has been examined for its overall slope and drainage patterns. The site is at a higher elevation in the north and slopes towards the south and the drainage is from north to south and east to west direction. In terms of the slope variation, it is very minor and is of the order of %. The site is relatively flat but it has some distinct lower elevation areas in the central portions of the site. Further analysis of the site also reveals that slope is not a major constraint in terms of site buildability and the topography presents no challenge for the overall site development Existing Physical Infrastructure Power Supply Existing Power Scenario in Uttar Pradesh and NCR Currently, Uttar Pradesh is drawing power from the Northern Grid (overseen by the Northern Regional Electricity Board). The region is facing an acute shortage of power and this is attributed to the power deficit in the Northern Grid and due to low generation of power in the state. At present, the basic management and control of the power supply system in the UP Sub Region of NCR is undertaken by Uttar Pradesh Power Corporation Ltd. (UPPCL) and UP Power Transmission Corporation Limited (UPPTCL); Paschimanchal Vidyut Vitran Nigam Ltd. (PVVNL) is responsible for the power distribution in the districts of Ghaziabad, Gautam Budha Nagar and Bulandshahr. In addition to the state owned power generation plants, there are various private owned ones and other managed by National Thermal Power Corporation Ltd (NTPC), Nuclear Power Corporation Ltd. (NPCL), and the National Hydro Electric Power Corporation Ltd. The various power sources in UP include hydro, thermal, nuclear and renewable energy. Existing Power Sources Various power generation sources from where the power can be sourced for the proposed industrial developments including the Investment Region and Integrated Industrial township part of the IR are assessed. Existing, proposed and augmentation plans for various power plants is summarized in the following sections 1. NTPC Dadri: NTPC Dadri was set up to meet the power demand of the NCR. It is located at a distance of about 10 km from Dadri. The existing power plants at Dadri are as follows: NTPC (Coal fired under Stage I) - 840MW (beneficiaries are Delhi and Uttar Pradesh) NTPC (Gas fired ) - 817MW (beneficiaries are UP, Uttaranchal, Jammu & Kashmir, Himachal Pradesh, Chhattisgarh, Rajasthan, Punjab, Delhi and Indian Railways) NTPC (Coal fired under Stage II ) Extension 5&6 (recently commissioned) MW, (likely to be supplied to Delhi (90 per cent) and the remaining 10 per cent to UP) Dadri is also the home to a big switchyard with a power handling capacity of more than MW. It has 8 outgoing transmission lines. This area caters to multiple infrastructure projects and industries in the NCR 45

47 such as two large cement plants producing polozonna Cement, railways traction substation at Dadri Railway Station serving north-east railway corridor and the Delhi Metro Rail Corporation (DMRC). 2. Future Power Capacity addition The State Government is aiming at a power generation capacity of about 25,000 MW by the year 2017 with the help of private investment. A future capacity addition as per 12th plan ( ) will be as follows: a) Coal & Lignite 6,100 MW (NTPC,ROSA P.C,UPRVUNL, IPP) b) Gas Based 5,600 MW (Reliance-Dadri) Apart, other power projects into consideration are: a) UPPCL has planned to construct a 2,000 MW coal based power plant near Bulandshahr along the bank of River Ganga. A new company named Yamuna Power Generation Company Ltd. has been created with four partners (Noida, Greater Noida, YEIDA and UPPCL) for its construction. Table 2-2: Proposed power projects in state of Uttar Pradesh Project Agency Status Type Rihand III U-5 NTPC UC* Coal 500 Capacity (MW) Dadri Ext U-5,6 within NTPC site NTPC C* (490 MW) Coal 980 Sub Total (Central Sector) 1480 Parichha Ext U-5,6 UPRVUNL UC Coal 500 Harduaganj Ext U-5,6 UPRVUNL UC Coal 500 Anpara D UPRVUNL UC Coal 500 Sub Total - State Sector 1500 Anpara C LANCO UC Coal 1200 Rosa St-I ROSA POWER C (300 MW) Coal 600 Rosa St-II ROSA POWER C (300 MW) Coal 600 Sub Total - Private Sector 2400 Total 5380 C- Commissioned. UC Under construction As per the data available from UPPCl, the list of substations located in and around the site for the proposed Integrated Industrial Township is provided in Table 2-3. The nearest 400 kv substations are located at Greater Noida at Pali. 46

48 Table 2-3: Substations in and around the Investment Region SI. No Electrical Sub-station Capacity 1 Greater Noida 400 KV 2 Noida Sector KV 3 Dadri 220 KV The site lies within the notified Master Plan area of Greater Noida. There are proposals to augment the existing power infrastructure near the site as part of the Greater Noida Master Plan Presently, a 220 kv substation is located at a distance of approximately 1 km from the site boundary in north. A 220 kv line passes along the northern edge of the site and a 400 kv D/C line to 400 kv Palli sub-station also traverses along the eastern edge of the site. It has been proposed to set up one 220 kv and one 33 kv substation along with 220 kv HT line passing through the project site. With the proposed set of power infrastructure, it is expected that power demand of hi-tech industries and other used planned within the site would be met. Figure 2-12: Existing power infrastructure 47

49 Water Supply The principal source of water supply, both for the domestic as well as the industrial usage in Greater Noida is ground water. The Greater Noida Master plan area has been divided into nine zones. Each zone has a provision of Tube Wells, UGR s, OHT s and a network scheme for supply of water at the household level. The Mat branch (distributory of Upper Ganga Canal) passes at a distance of 2-3 km, close to the south eastern boundary of the delineated site. As per discussion with the GNIDA, no plans for water supply scheme/ network has been initiated in the delineated site. The proposed master plan for the Integrated Industrial Township envisages sustainable strategies for management of key resources particularly water, proposing usage of recycled water for non-potable uses within the site. Figure 2-13: Existing water source 48

50 Sewerage, Drainage & Solid Waste Disposal Greater Noida has proposed 100% coverage for sewerage disposal through an extensive network of Sewerage Treatment Plants (STP s), each with a dedicated catchment. The delineated site falls in the catchment of 72 MLD STP (36 MLD in Phase 1). However a 137 MLD STP is under construction and is located at a distance of about 6 km from the site, scheduled to be functional by The Kot escape, drainage channel for treated waste water also passes through the north western edge of the site along the 80m ROW sector road. The waste disposal and landfill site, earmarked in the Greater Noida Master Plan 2021, is located approximately 8 km from the site, as shown in Figure Figure 2-14: Existing waste disposal system 49

51 Gas Supply City Gas Distribution (CGD) Network Scenario: There are a number of private/psu companies operating City Gas Network across the State of Uttar Pradesh (UP). Indraprastha Gas Ltd (Promoter GAIL & BPCL) is the main city gas provider for Delhi, Noida, Greater Noida and Gaziabad region. Indraprastha Gas Ltd (IGL) has CGD license for this region for 25 years and is responsible for gas pipe network capital and Operation & Maintenance (O&M) costs. IGL supplies CNG for Vehicle and PNG for residential, hotel, hospital and industrial use (Boiler, Glass, Ceramic Industries, food processing, automobile and Power generation). IGL is buying gas from GAIL, Indian Oil Ltd., Reliance and Bharat Petroleum. As shown in the Figure 2-15, GAIL gas pipeline network (Hazira-Bijaipur-Jagdishpur Gas Pipeline) covers the Uttar Pradesh State and passes close to the proposed Integrated Industrial Township part of the larger Investment Region - DNGIR. IGL, GAIL Gas and many private operators are currently operating for CGD Network near this area. The stakeholder consultation with IGL officials was carried out to assess the scenario for availability of gas for Investment Region and associated projects like the proposed Integrated Industrial Township. IGL suggested that the gas distribution for these projects can be provided as they have existing pipe network coverage upto Dadri and Lal Kuan and can be extended up to DNGIR. The proposed Integrated Industrial Township within the Investment Region are located at a distance of 10 kilometers (approx.) from the Dadri gas tapping point and the gas can be supplied in the region Figure 2-15:Existing and proposed gas network in the catchment of DNGIR 50

52 Telecommunications In the present scenario, the telecommunication sector enjoys substantial encouragement and support from Government policies and it is reasonable to assume that sustainable and economical fibre optics network in the project area can be developed. The concept of fiber to home shall carry all the signals for telephone, internet, video-on-demand, entertainment channel, etc. Service providers such as BSNL, Airtel, Reliance, Tata Indicom, Vodafone and Idea are all present in the local market and it is anticipated that multiple carrier services can be made available to the consumers in the Industrial Township by government agencies or private operators Development Control Regulations The various land uses and building facilities to be planned in the proposed development within Greater Noida area has to comply with the Greater Noida Master Plan bye-laws, a statutory document, amended latest in Further, in order to propose a deviation from these laws, an inventory of the same need to be carefully chalked out, comprehended and then suitably modified. Existing Bye-laws governing development of major land uses, to be planned in the proposed Integrated Industrial ownership development are summarized below. Table 2-4: Development Control Regulations for industrial developments S.No. Plot Area (square meter) Maximum Ground coverage (%) Maximum Floor Area Ratio 1 Upto Above 100 but not exceeding Above 500 but not exceeding Above 1000 but not exceeding Above 2000 but not exceeding Above 5000 but not exceeding Above but not exceeding Above

53 Table 2-5 : Development Control Regulations for public/semi-public facilities S.No. Use Maximum Ground Coverage (%) Maximum Floor Area Ratio 1 Convenient Shopping Centre* 40% 40% 2 Sub District Centre, Shopping along Street and other Master Plan level Shopping Centres* 30% 30% 3 Hotel 30% 30% 4 Sport and Amusement Complex, Swimming Pool, Shooting Range 20% 40 5 All Other Educational Institutions, Research and Training Centre, Testing Laboratory 30% Government, Semi-Government, Corporate Offices 30% Hostel, Boarding House 30% Museum, Art Gallery and Exhibition Center 30% Other Utilities 30% Multiplex 30% As per Government Order 11 Information Technology and Information Technology Enabled Services 30%

54 Table 2-6 : Development Control Regulations for group housing (flatted & cluster type) S.No. Maximum Plot Area (square meter) Maximum Ground Coverage (%) Maximum Floor Area Ratio square meter 30 % SWOT Analysis Based on an analysis of the existing conditions including infrastructure availability, land use, and government policies and incentives, a strengths-weaknesses-opportunities-threats (SWOT) analysis for the project site has been conducted. Strengths and weaknesses are internal to the site, while opportunities and threats are due to external factors. Some of the weaknesses and threats can be mitigated or converted into opportunities through development strategies and master plan proposals. Strengths Table 2-7 : SWOT analysis Weaknesses Well connected to major arterial and subarterial road networks providing good east west connectivity Existing and proposed residential catchment areas and other compatible land uses surrounding the proposed Hi-tech City Most of the land delineate for the project is under the Government ownership eliminating issues related to land acquisition Existing/ planned road network enabling envisaged development of site The existing railway line forms an edge to the site in the north east providing limited points of access from the north side Grade separated Rail Over Bridge(ROB) at the junction of existing railway line and Eastern Peripheral Expressway provide limited opportunity to take multiple entry points from the major arterial road Limited access roads to existing villages and other settlements/industry plots surrounding the site. Due to the presence of the railway line on one side the road network proposed within the industrial township needs to provide connectivity to all existing uses/ villages Existing road network and utilities to influence the overall site structuring Regular site configuration with active land uses and access roads on either side 53

55 Strengths Weaknesses provides opportunity of a consolidated development Site is mostly flat land; entire site buildable Availability of skilled human resources and established educational institutions in the catchment area Proximity to Greater Noida development sectors & DNGIR which will be a well established industrial node within Uttar Pradesh Opportunities Development located close to the proposed Metro Line from where a Bus Rapid Transport link may be established connecting the site to a wider public transport network; a light rail network link may also established in the later phases of the development Threats Persistent negative perception about law & order within Greater Noida Potential for integrated industrial township development promoting hi-tech industries and R&D innovation labs along with commercial and business uses, real estate investment development Potential to provide additional civic and commercial facilities for the surrounding residential areas Employment opportunities for the residential population within the catchment area Potential to introduce and promote more sustainable urban practices, within a new master-planned fabric 54

56 3 Market Assessment 3.1 Industry Mix for DNGIR Analysis of industry at global and local level was carried out to understand the dynamics of the industry. In depth analysis was carried out to understand the growth trends as well as to understand the shift of the industry from developed to developing nations. Estimates are based upon historical and existing trends, inherent advantages of India and Uttar Pradesh (UP), existing status of the industry under consideration in UP state, government policies, view of industry experts and representatives and potential investors. As the underlying vision of the key stakeholders is to make DNGIR a destination with world class modern industries, for each sector a large sample size was considered. The average of revenue per employee for each sector was calculated to arrive at the average revenue per employee. The projected revenues for each industry and world average revenue per employee were used to arrive at employment potential for the industry under consideration. A weighted mean of the benchmarked units was taken to arrive at an optimum employment per hectare for each sector. The employment potential for each sector was then divided by employment per hectare to arrive at the area allocation to a particular industry in DNGIR and the Integrated Industrial Township. 3.2 Revenue Forecast- Industries in the Integrated Industrial Township Methodology For the Industries in Integrated Industrial Township, the approach is as follows: New age sectors considered : R&D, Biotech, Hi Tech, MRO (Aircraft and Engine Maintenance), Renewable Energy (Solar and Wind Energy), Vertical Farming Media and Entertainment, BPO Services, Robotics (can be part of Hi-tech); Investor view point: Discussions were carried out with domestic and international investors/ companies to arrive at the new age sectors which fit in Hi-tech category; Multilevel Development: Considering the optimum utilization of land, those industries which support multi tier development were considered. R&D, Biotech and Hi-tech support multi ties development; Support to core industry: The industries like R&D, Biotech and Hi-tech can act as standalone industries. It can generate demand from local and global investors. But the same industries will also support core industries in UP like food, auto, electronics, pharma, etc. Support industry contribution to core industries norm was considered to arrive at the size of sunrise industries in DNGIR; Demand side analysis: Current industry figures were analyzed and future growth forecast was used to arrive at the final figures for India. Contribution of UP was calculated based on the industry assumptions (contribution of industrial output of UP to India). Contribution of Industry in the Integrated Industrial Township was calculated based on the assumption of number of similar parks that would come up in UP till This number was arrived after the face to face discussions with key stakeholders like Government, private companies and key opinion leaders; and 55

57 Supply side analysis: Best of class hubs already existing and coming up in India were analyzed and international ones were also considered. Considering these benchmarks a particular area was assumed for the park. On the basis of area, employment and revenue potential was calculated Assumption and Analysis From the industry data and Annual Survey of Industries, it has been estimated that manufacturing sector (primarily the core sectors like food, auto, electronics and IT) contribution of UP to India is ~10%. The sunrise sectors will support core sector and behave in the similar fashion. Hence, the contribution of UP for each sunrise sector was estimated to be 10% of the Indian market. Analysis of the developed countries, Asian countries like China and Thailand shows that the new age sectors / support industries have grown at a CAGR of 10 15%. Thus it has been assumed that for DNGIR the sunrise sectors will grow at a CAGR of 15%. 3.3 Revenue Estimation Methodology for the Integrated Industrial Township Demand Side Analysis Supply Side Analysis Current size of each sunrise industry at India level was used to estimate the size of industry in 2040 Benchmarking in terms of area of the park for each sunrise sector was done considering the upcoming/existing state-of-art parks Contribution of UP for each sunrise sector was estimated Estimating the number of parks for each sunrise sector that will come up in UP in next 30 years, Area of the park (ha) and employee/ha norm was used to arrive at the total employment Employment figures and revenue norm was used to arrive at the revenue potential of each sector Revenue for each sunrise sector was calculated from each approach to ensure the accuracy Surrogate Analysis According to the global norm, total revenue of the support industry is 10-15% of the core industries Figure 3-1: Revenue analysis 56

58 Total revenue potential for sunrise sectors from demand analysis is estimated to be Rs. 574bn Considering the norm of 10-15% of support industries contributing to core industries, revenue for sunrise sectors is estimated to be in the range INR 426 INR 639 bn (average of this works out to around Rs. 532 bn). 3.4 Proposed Industry Mix Three main sectors are considered as the key industries for the Integrated Industrial Township. The revenue potential for the three sectors for DNGIR is presented here Biotechnology Sub Sectors: BioPharma, BioServices (clinical research), BioAgri, BioIndustrial, and Bioinformatics Key Activities: Bio Pharma: Develop vaccines Bio Agri: Hybrid seeds, transgenic crops, biopesticides Bio Services: Clinical trial, contract research Bio Industrial: Enzyme manufacturing Bio Informatics: Creation and maintenance of extensive electronic databases on various biological systems Allied Sectors: Biotech will support sectors like Food, Pharma, Healthcare, Agri present in the region. Companies like Dabur, Goodlass Nerolac Paints, Indo Gulf Fertilizers, Fertilizer Corporation of India Ltd, ITC Ltd, Tata Chemicals already present in the region could be the downstream partners. Revenue estimation: Revenue potential for Biotechnology sector in DNGIR was estimated to be Rs. 77bn 57

59 Demand Side Analysis Supply Side Analysis Current size of Biotech industry in India is USD 2.5bn and estimated to be USD166bn (INR 3,642bn) in 2040 Benchmarking with Shapoorji Pallonji Biotech Park (SPBP), spread over 400 acres (i.e ha) near Hyderabad Assuming 10% contribution would be from UP, the industry in UP is estimated to be INR 364bn Area of the park (161.94) * employee/ha (100) = 16,194 employee It is estimated that at least 5 biotech parks will come up in UP in next 30 years, contribution of biotech park in DNGIR was calculated to be ~INR 75bn Employment (16,194) * Revenue / emp (4,734,398) = INR 77 bn Revenue for Biotech Park INR 77bn Figure 3-2: Revenue potential for biotechnology sector in DNGIR Hi-tech Sub Sectors: Fabrication (semiconductors) industries, Nanotechnology, Optoelectronics Key Activities: Optoelectronics: Applications for LEDs, image sensors, and other light controlling products Nano Technology: Bio/chemical sensors, anti-bacterial coatings, cosmetics, polymer nano particles for therapy, Allied Sectors: Consumer electronics, telecom, defense, Materials and Manufacturing, Healthcare and Life sciences. Companies LG, ST Microelectronics, Moser Baer, Mirc Electronics, HCL already present in the region could be the downstream partners Revenue estimation: Revenue potential for Hi-Tech sector in DNGIR was estimated to be Rs 357 bn 58

60 Demand Side Analysis Supply Side Analysis Current size of Hi-tech industry in India is USD 4.5bn and estimated to be USD 298bn (INR 6,555bn) in 2040 Benchmarking with Hi-Tech SEZs in Sriperumbudur Industrial Park spread in 570 acres (i.e ha) Assuming 10% contribution would be from UP, the industry in UP is estimated to be INR 655bn Area of the park (230.8) * employee/ha (190) = 43,846 employee It is estimated that at least 2 Hi-tech sector parks will come up in UP in next 30 years, contribution of Hi tech park in DNGIR was calculated to be ~INR 330bn Employment (43,846) * Revenue / emp (8,136,063) = INR 357 bn Revenue for Hi-tech Park INR 357bn Figure 3-3: Revenue potential for hi-tech sector in DNGIR R & D Sub Sectors: Research and development in key sectors like IT, Electronics, Automobile, Food, Pharma, Healthcare, etc. Activities: New product development, Software development, Auto design, Drug design and Pharmaceuticals, Hardware and product design Revenue estimation: Revenue potential for R&D sector in DNGIR was estimated to be Rs.140 bn 59

61 Demand Side Analysis Supply Side Analysis Current size of R&D industry in India is USD 5.8bn and estimated to be USD 385bn (INR 8,460bn) in 2040 Benchmarking with North Carolina Research Campus (NCRC), USA which is spread in 350 acres (i.e. 145 ha) Assuming 10% contribution would be from of UP the industry is estimated to be INR 846bn Area of the park (145) * employee/ha (197) = 28,565 employee It is estimated that at least 5 R&D parks will come up in UP in next 30 years, contribution of R&D park in DNGIR was calculated to be ~INR 165bn Employment (28,565) * Revenue / emp (4,863,477) = INR 139 bn Revenue for R&D park INR 140bn Surrogate Analysis Globally companies invest an average of ~ 4% of sales in R&D (US 4.9%, Europe: 4%, Japan: 3.8%, India: ~1%) (Source: Global Innovation 1000 Report: Booz Allen) We assume (based on primary interviews and the outlook till 2040) companies in DNGIR will spend ~4% of their revenue on R&D. Total estimated revenue (INR 4,264bn). R&D spend in DNGIR is estimated to be (4,264*4%) = ~ INR 170bn Figure 3-4: Revenue potential for R&D sector in DNGIR 60

62 3.5 DNGIR Revenue Potential under the influence of DMICDC Total revenue potential of the DNGIR from new age sectors is presented in Table 3-1. The estimation of area and employment potential for DNGIR is presented in Table 3-2. Share of the total revenue potential for DNGIR has been considered for the Integrated Industrial Township. Table 3-1 : DNGIR revenue potential Industries Incremental Revenue DNG IR : 2040 (Rs. bn) Research & Development (R&D) 140 Bio-tech Industries 77 Hi-tech Industries 357 Total Estimation of Area and Employment for DNGIR Employee Projections The projected revenues for each industry and average revenue per employee were used to arrive at employment potential for the industry under consideration Revenue per employee was derived from the large and medium sized recognized companies in India for the shortlisted industries for DNGIR Area Projections The employment potential for each sector and employment per hectare were used to arrive at the Area allocation to a particular industry Employee per hectare was derived from the top Indian and multinational companies for the shortlisted industries in DNGIR. 61

63 Industries Incremental Revenue DNGIR 2040 (Rs. bn) Table 3-2 : Area and employment estimation for DNGIR Rev/ emp (Rs.) benchmarks considering technology upgradation (B) Employment generated 2040 (C) = (A) / (B) Emp/Ha (D) Built-up Area required (ha) (C) / (D) Built-up Area required (acre) R & D 140 4,863,477 28, Biotech 77 47,34,398 16, Hi tech ,36,063 43, Total , Assuming the Built-up Area for industrial development available for the Integrated Industrial Township is 855 acre (346 Ha), the revenue and employment for the Industrial Township based on the land allotted for each industry is as shown in Table 3-3. Table 3-3: Area and employment estimation for the Integrated Industrial Township Industries Revenue generated in Industrial Township (Rs. bn): Employment generated in 2040 Total Built-up Area required (acres) R&D , Biotech Hi tech , Total ,

64 The approach adopted to arrive at the market assessment methodology for the Integrated Industrial Township is further explained in Annexure 1. The following sub-section briefs out the prevailing real estate market environment of the Greater Noida Region 3.7 Micro Market Real Estate Appraisal Greater Noida is a planned township situated in proximity to Delhi and Noida. As such, the area falls within the NCR region and is adjacent to Noida, the first industrial township in Asia. It is a township developed on the outskirts of Noida, mainly to cater to the phenomenal influx of population into this region in the last few years. The city has high-quality infrastructure as well as planned social amenities for each stage of development. There are a number of quality residential developments in Greater Noida. Adding to the living standard are improved infrastructural facilities like wide roads, proper underground cabling and excellent drainage system. Greater Noida has over the years emerged as an affordable housing hub of the NCR. The consultants track the real estate market of Greater Noida and NCR at large on a quarterly basis. The figure below shows the trends on residential real estate supply and absorption as observed in the micromarket over a period of time Number of units Supply Absorption Figure 3-5: Supply absorption trends in Greater Noida As per the consultants, the Greater Noida market is expected to witness a supply of approx. 14,000 units in year The absorption level is estimated to be nearing 12,000 units for the corresponding year. As observed, majority of the supply is expected to come in the Apartments segment having a share of about 87% contribution. The independent floors, row houses and villas will contribute to the remaining part of the pie. 63

65 Apartments Row Houses/ Villas 13% 87% Figure 3-6: Segment wise break up in supply Between the last quarter of last calendar year 2012 and first quarter of 2013, the market had an inventory overhang of around 5-6 months. A significant amount of supply has been added in the second quarter of Based on the current absorption trends, we expect the inventory overhang to significantly increase to approximately 20 months. The Greater Noida market has been trading at an average price of around Rs. 3,000/- per sq.ft. Over the last 6 months the market has witnessed a price appreciation of over 4.7% on units that are left unsold. The table below shows the prevailing weighted average capital values in the micro-market for unsold, sold as well as in new launches. Table 3-4: Prevailing weighted average capital values in the micro-market Wt. avg. price (available units) Wt. avg. price (absorbed units) Wt. avg. price (new launches) Q Q Q The destination has witnessed a healthy interest both end user and investor over the last few years due to its proximity to Noida and affordable housing. However, the sale momentum had slowed down during 2011 and 2012 due to land acquisition row. With a solution to this problem, we believe this destination to gain traction over the coming few years. 64

66 4 Benchmarking Studies Projects for benchmarking study have been carefully chosen on the basis of their global relevance in specific typology of industry and the quality of infrastructural facilities that enhance the futuristic value of these projects. The method adopted for analysis comprised of desk research to study key aspects of selected cases. Various projects have been studied to obtain a holistic understanding of global industrial planning strategies and practices. 4.1 Masdar city, Abu Dhabi Masdar City is planned to extend over 6 square kilometers [2.3 square miles] and will house 45,000 to 50,000 residents and 1,500 businesses with a density of 140pph mainly manufacturing and commercial concerns with specialist expertise in green technology and clean tech products. Three concepts of sustainability applied: Social sustainability (liveable and workable city); Economic sustainability (cost effective with regard to operation and maintenance); and Environmental sustainability (following the concept of 100% renewable energy and carbon neutral city) The main components of the master plan are: Orientation- seeking the maximum efficiency gains at the lowest cost by optimally orienting the city grid and buildings to minimise solar heat gain on building walls and the street, while maximising cooling night time breezes; Integration- all aspects of city life are integrated so work, entertainment, recreation and home are all in close proximity, for convenience and to minimise use of transportation; Low rise, high density- most buildings are no more than five storeys; Vibrant urban realm- in the city, as much focus has been put on the public spaces between the buildings, as well on the buildings themselves. Thus, the streets and squares invite people to enjoy the outdoors, where they interact and engage with fellow students, residents, professionals and visitors; Pedestrian focused- this means narrow, shaded streets, and pleasant shaded walkways and other paths that encourage walking. The integrated nature of the city means it s not far to walk to many destinations, while convenient transportation also supports this pedestrian focus; and High quality of life- the city is committed to offering the highest quality work and living experience with the lowest possible environmental footprint Transportation The entire city is linked by internal transport networks. Private vehicles are required to be parked at the periphery of the site. The Metro line from Abu Dhabi city centre passes through Masdar cutting through the site. An internal train line is proposed that passes through the mostly frequently used destinations within the site. 65

67 An innovative mode introduced within this site which acts as quick and feasible mode of private transportation is the Pod cars. Personal Rapid Transport (PRT) also known as Pod cars - runs on an electric motor, making it clean and carbon-free. There are no tracks the car is autonomous, driven by a computer that charts direction with the help of tiny magnets embedded in the road. In addition, a public transport system of electric buses, electric cars, and other clean-energy vehicles will provide transport within the city, while Abu Dhabi s light rail and Metro lines will pass through the centre of Masdar City, providing transport within the city and serving as a link to the wider metropolitan area. Most private vehicles will be kept at the city s edge in parking lots that will be linked by public transportation to the rest of the city. Environment management plan covers several specific aspects including: Solar Power Plant Project - 40 to 60 MW Wind Farms 20 MW Photovoltaic modules MW Water management Zero Waste City Recycle and reuse 80% of waste water - grey water for crop irrigation 66

68 Smart Technologies Masdar s review of the City s Master Plan detailed key updates to the project s build-out timeline, sourcing of renewable power and transportation and building infrastructure. Key revisions include: Limiting of the Personal Rapid Transport (PRT) system to an ongoing pilot project within the Masdar Institute facilities, while allowing for the possibility of alternative electric vehicle technologies and transport system to be rolled out in the City; Limiting the 7.5m podium and service trench to the Masdar Institute; Revised delivery timeline, with the one million square meter Phase I now scheduled for completion in 2015 and final build-out by ; The exploration of new potential sources of power such as geothermal energy and solar thermal cooling with a number of pilot projects already underway; and While still aiming to eventually be powered 100 percent by renewable energy, Masdar City will no longer rely solely on on-site clean energy sources. Instead, the purchase of renewable energy from off-site locations may also be utilized as energy demands increase over the project s lifetime Water management The city is using a broad array of water-use reduction technologies and systems. Highly efficient fittings, fixtures and appliances, smart water meters that inform consumers of their consumption, and smart meters to identify leakage across the system are already in use. Also, treated wastewater is 100% recycled for use in landscaping, which has achieved a 60% reduction in water usage per square meter over built-up area, through a variety of strategies, including highly efficient micro-irrigation, landscaping design that minimizes plant evapo-transpiration, and low-water-use and indigenous plants and trees. Waste Management The city's solid waste is divided into three principle streams: dry recyclables (cans, plastics, cardboard, papers, etc), wet recyclables (food and other organic waste) and residuals (e.g. toothpaste tubes, empty food containers and other common waste that is not clearly one of the other two). A fourth stream, which represents a small percentage of the total, includes bulky waste, hazardous wastes and other special wastes, such as batteries. Buildings in the city have three waste chutes to allow for easy separation into the three main waste streams. A Resource Recovery Centre (RRC) in Masdar City will have facilities to further sort dry recyclables before onward transport to local or regional reprocessing facilities, compost wet recyclables for use in city landscaping, and prepare the remaining non-recyclable and special waste for offsite management. Key Takeaways Usage of sustainability as the main concept of the design; Well knit and innovative transportation solutions; and Energy efficiency and adaptability techniques used in the project 67

69 4.2 Kulim Hi-Tech Park, Malaysia The Kulim Hi-Tech Park (KHTP), officially opened in 1996, is the first Hi-Tech Park in Malaysia. The KHTP is situated in the district of Kulim, in the state of Kedah, in the north-west of Peninsular Malaysia. KHTP has grown rapidly to represent the second-largest technology park in Asia today, concentrating on electronics, semi-conductors, optic-electronics and biotechnology. Situated in the Kulim District of Kedah Darulaman, the entire 1,450 ha park area of Kulim Hi-tech Park is developed as an integrated hi-tech center. It has a strategic location with support facilities and human resources available for high-tech manufacturing and research and development (R&D) activities. Right from the onset, the development of KHTP incorporates 6 elements or Zones, namely: Industrial; R&D and Training; Amenity; Housing; Urban; and Institutional Table 4-1: Kulim Hi-Tech Park- Land use distribution Land Use % R&D/training 11 Industrial 28 Housing 32 Town Centre 8 Institution 17 Amenity 4 Land use distribution within the site is as follows: Resource center with innovation house, supporting facilities -10,846 sqm High technology industry- 405 sqm Prototype and production center - 2,964 sqm R&D/training-157 sqm QC Lab -4,326sqm Housing -470 sqm 68

70 Incubator center 2-5,632 sqm Amenity -248 sqm Incubator center 3-5,632 sqm Institution -55 sqm Enterprise house 1-5,340 sqm Enterprise house 2-5,340 sqm Enterprise center 3-10,845 sqm Recreation center- 2,735 sqm Total built-up area is 58,692 sqm and the land use of the plot is 1,448 Hectares. In the Malaysian context, "high-technology" companies are defined as companies engaged in promoting activities or in the production of promoted products in the areas of new and emerging technologies. The identified broad areas of high-tech companies/activities are: 1. Wafer Fabrication & Related Activities 2. Semiconductor & Related Activities 3. Green Energy (Solar Cell / Fuel Cell / Polymer Battery / Renewable Energy) 4. Advanced Electronic Industries 5. Medical and Scientific Instruments 6. Process Control and Automation Equipment 7. Optical and Electro-optical Application 8. Optoelectronics 9. Biotechnology 10. Advanced Materials 11. Contract R&D Services 12. New and Emerging Technologies The industrial zone was the first to take off in Covering an area of 1,176 acres, this component was developed in two phases with the first covering 617 acres comprising 31 industrial lots as well as R&D, administrative and support facilities. Phase two is made up of 559 acres with 14 industrial lots. The R&D zone comprises a 91.5-acre parcel earmarked for R & D activities that includes Techno Centre, which is equipped with facilities for electronics testing, human resource development, biotechnology and industrial collaboration network. Companies, organizations or individuals performed R & D activities in Kulim Hi-Tech Park can leverage on the availability of high technological tenant companies. Products, services or research findings of the former could go a long way to support the operations of these latter companies. There is also the great opportunity of networking with other industrialists, R & D institutions and local technopreneurs in the park. 69

71 Figure 4-1: Land zoning in Kulim Hi-Tech park, Malaysia Industrial Investment The Park's master plan emphasizes on quality of life in a self-contained environment, which incorporates industries, R&D facilities, and a new township with full amenities such as a shopping center, a hospital, educational institutions and recreational facilities. The first phase of its industrial zone covering 250 hectares (620 acres) has been fully leased, and tenants have moved into the second phase. According to Kulim Technology Park Corporation (KTPC), the developer and manager of the park, a total attracted investment to the park has exceeded RM12 billion (US$3.2 billion). Key Takeaways The functions and programs are in line with the overall development scheme of the region; and The programs are planned with sufficient infrastructural support that will enhance the sustainability ratio of the project 70

72 4.2.1 Du Biotech Park, Dubai Du Biotech Park is envisioned as a major contribution to Dubai's knowledge based economy by creating, developing and advancing an integrated life science cluster. The park is the first free zone focused on the biotechnology industry, and an important component of the vision to transition the country to a knowledgebased economy. The master plan includes three major areas of development: a headquarters piece containing scientific and administrative support; a bio-research and manufacturing piece containing flexible laboratory, pilot plant, and manufacturing facilities; and an academic piece containing an undergraduate teaching university. The total area of the site is 3 sq km and the built up area is 2,78,709 sq m. These components combine to form the new research community. Ultimately, the community will be comprised of over 30 million square feet of built space and corresponding infrastructure to align with the overall vision for the development of a new international center for biotechnology. The master plan supports the research community and promotes interaction among the corporate, research and academic sectors. A DNA motif is woven throughout the park, and is most obvious in the landscape design, where a meandering curvilinear form celebrates life within the desert. Figure 4-2: Land use distribution in Du Biotech park, Dubai 71

73 Table 4-2: Land-use distribution for DuBiotech park, Dubai Land Use % Industry R & D Manufacturing Animal reserve Administration 2.49 Commercial 6.37 Residential 2.37 Educational facility 0.36 Public Facility (utilities, green, roads) Total 100 Project Components: Biology Laboratory, Central Utility Plant, Community Space, Educational Space, Infrastructure, Manufacturing Facilities, Offices, Parking, Residential Space, Shelled Space, Spa Project Type: Basic and Applied Science Facilities, Corporate, Headquarters, Science + Technology, Science Park. Number of Companies / Industries operating- 85 Kind of Companies/ Sectors involved R&D, sales/marketing; Venture Capital organisations ; Legal, financial Consultancy firms; and Bio Technology Park, serves as a centre for basic research and commercial activities Linkages Centrally placed Headquarters and R & D looped together, peripheral manufacturing, community, residential & commercial facilities; Two towers of headquarter buildings joined together by jewel like structure; and Building groupings tied to the headquarters, connected by a series of walkways, roads & underground parking facilities 72

74 Smart Technologies World s first free zone dedicated to Life sciences; One-stop-shop service experience; Regulatory affairs management, Partner Development Management, registering and licensing; and Assistance in residence & entry permits for employees and business visitors Sustainable Features: Daylighting & Views, Energy Efficiency, LEED Silver, Occupant Lighting Control, Occupant Thermal Control, Water Efficient Landscaping, Water Use Reduction Other key features Population / Employees- 1000; and Project promoters- Dubai Government and TECOM investments Figure 4-3: Du Biotech park, Dubai 73

75 Key Takeaways The break-up of land usage for manufacturing activities; Land zoning of the site and arrangement of industrial spaces within the complex; and Sustainable features that can be applied to the site Shapoorji Pallonji BioTech park, Hyderabad The park covering an area of 300 Acres is a Joint Venture between the government of Andhra Pradesh and Shapoorji Pallonji Co Pvt Ltd. It avails infrastructure for life science research, particularly for biopharmaceuticals, training and manufacturing activities, Business Support Facilities, state of Art Technology Incubation Center with a Pilot Plant and Analytical Equipment with all the other basic facilities of road, power, space, telecom etc. The facilities like ready to use modular wet labs on lease rental basis, a Biotechnology Incubation Centre (including Pilot Plant), Business support facilities are currently available in the park. Facilities provided include Modular laboratory units; Telecom network ; Reliable power, water supply and sewerage treatment ; Common effluent treatment facility; Security, housekeeping, roads, fire detection; Assistance in getting started; Technology Incubation Centre; Pilot Plant; and Support in meeting statutory requirements Industrial promotion and development services Technological information and technology transfer consultants; and Advanced manufacturing technology consultants Industrial estates Industrial estates, building and grounds management Chemistry, physics and biological engineering consultants Polymer technology engineering consultants; Biotechnology consultants; Genetic biotechnology consultants; and Microbiology consultants 74

76 Research, general Science parks; Information logistics, research and development; Biological research and development; Genetic and biological engineering research and development; Scientific research centres and laboratories; Natural science research establishments; and Biotechnology research and development Figure 4-4: Shapoorji Pallonji BioTech park, Hyderabad Trade commissions, trade promotion institutes Industrial development promotion associations Public administration Science and Technology Development Boards Key Takeaways Integration of technology and infrastructure in the Indian context; and Functional requirements of a bio-tech park 75

77 4.2.3 Biopolis, Singapore Biopolis is an international research and development centre located in Singapore for biomedical sciences. It is located in One-North in Buona Vista. This campus is dedicated to providing space for biomedical research and development activities and promoting peer review and collaboration among the private and public scientific community. The concept of One-North is work, Live & Play - A place where great minds come together to do great science, Biopolis and Fusionopolis are part of a greater eco-system in onenorth, where working, living, and playing comes together as one. The Biopolis is part of a master plan for a much larger 200-hectare development known as one-north and there are provisions for expansion to cater to a growing demand from biotech companies. Figure 4-5: Biopolis, Singapore 76

78 Phase 1of Biopolis comprises a seven-building complex linked by sky bridges and offers a built-up area of 185,000 sqm. Two buildings, Chromos and Helios, are dedicated to biomedical players from the private sector. The other five (Centros, Genome, Matrix, Nanos and Proteos) house the biomedical research institutes of the Agency of Science, Technology and Research (A*STAR), Singapore's lead agency for scientific research and development under the aegis of the Ministry of Trade and Industry. The five research institutes are the BioInformatics Institute (BII), the Bioprocessing Technology Institute (BTI), the Genome Institute of Singapore (GIS), the Institute of Molecular and Cell Biology (IMCB) and the Institute of Bioengineering & Nanotechnology (IBN). At steady state, a fully occupied Biopolis in Phase 1 will be home to 2,000 scientists. This research community is fully supported by state-of-the-art infrastructure including shared resources and services catering to the full spectrum Development The development of Biopolis was undertaken in five phases. Phase 1 - cost S$500 million to build and was launched in It provides 200,000sqm of research space which is now home to more than 2,000 scientists, researchers, technicians and administrators. The research community is fully supported by state-of-the-art infrastructure and services catering to the full spectrum of biomedical R&D activities. Phase 2 - was officially opened in The additional 37,000sqm of built-up area comprises two buildings Neuros and Immunos. Phase 3 - was completed in January The 41,500sqm facility is set to tap on the synergies of the Biopolis cluster and support world-class research programmes in clinical and translational research as well as medical technology research. Development for phases 4 and 5 are currently underway and slated to be completed in Phase 4 - has been taken up by Procter & Gamble for its Singapore Innovation Centre, whilst Phase 5 -will provide 46,182sqm of biomedical research facility for additional laboratory space, including ready-fitted laboratories (ie Shell-plus laboratory) which caters to biomedical SMEs and start-ups through saving the companies time and resources during their initial setup phase Amenities For the general public, Biopolis has eight shops, four restaurants, four cafes, a 300-seater food court, a fast food restaurant, a pub and a childcare centre. For its members, Biopolis has a 480-seater auditorium and four 250-seater lecture theaters. It also has 13 meeting rooms. The mixed-use development comprises private residences, serviced apartments, hotel rooms, recreational and retail facilities. 77

79 Figure 4-6: Biopolis, Singapore Sustainable features Key sustainable features include a building-integrated photovoltaic or solar-powered system; intelligent building automation systems to optimise energy usage; a district cooling system to provide centralised chilled water supply to optimise the use of space and minimise energy costs for air-conditioning; and solarpowered LED lights with ultra capacitor as energy storage device which are now being used as a landscape feature. Facilities Biopolis provides researchers with cutting-edge shared facilities such as laboratories for DNA sequencing, flow cytometry, mass spectrometry and nuclear magnetic resonance staffed by trained technicians. Business support facilities such as meeting rooms and theatrettes are also available for rent. The goal is to help biomedical companies cut R&D capital spending so they can focus the investment on accelerating drug discovery and development. Key Takeaways Efficient planning of technological functions within high rise building complexes; Land zoning of various functionally diverse building types in an integrated fashion; and Mixed use of site area with all supporting amenities in a predominantly technological complex 78

80 4.3 Lessons learnt from Benchmarking Studies Some of the very relevant lessons learnt from these globally renowned examples are: Clear understanding of area programming within the various industrial typologies along with the necessary amenities for each of them; Spatial requirements for these industries with specific functions; Circulation patterns for users and goods within the site; Approximate activity patterns, number of users, frequency of usage etc; Relevance of public spaces within such gated industrial clusters; and Characteristic features that add value to the estate like the use of sustainability principles, vertical stacking of various activities etc. 79

81 4.4 Comparative Analysis of Benchmarks Table 4-3: Comparative analysis of benchmarks Masdar, Abu Dhabi Kulim, Malaysia Du Biotech Park, Dubai Shapoorji Pallonji, Hyderabad Biopolis, Singapore Plot Area 600 ha 1450 ha 300 ha 120 ha 200 ha Major land uses Research oriented Manufacturing industries Life science industries Biotech manufacturing and research Bio- pharma Lab/ Research facilities World class lab facilities for research on renewable energy sources. Incubation centres Houses Nucleotide Lab Complex- stateof-the-art laboratory, with a total of 256,000 sq. ft. of leasable area. Modular laboratory units with standard facilities and services Houses the National Reference Lab (NRL) for clinical analytical testing. Employment generation 45,000-50,000 NA 1000 NA 3000 scientists Institutional framework Owned by Mubadala- a body of the Government of Abu Dhabi Under the Kedah State Development Corporation and supported by the Malaysian Federal Government. Owned by the Dubai Government in partnership with the Swiss Biotech Association. Andhra Pradesh Government holds 11 % stake and rest by US based Alexandria Real Estate Equities Inc. Financed by the Singapore Government and owned by JTC (private developer). Tenancy Most Buildings have single occupancy. Mixed tenancy Mixed tenancy Certain Buildings have single occupancy as Business parks. Mostly mixed. Certain Buildings have single occupancy as Business parks. Mostly mixed. 80

82 4.5 Other Benchmarks Singapore Science Park - Benchmark for land scarce Hi-Tech park development Area: ~160 acres Employment: ~10,000 Sales Revenue: USD 2 3 bn More than 350 MNCs, local companies and national institutions Figure 4-7: Singapore Science Park 81

83 3 Phases I (75 Acre) started in 1981 II (50Acre) started in 1994 III (37 Acre) started in 2002 Conveniently linked to major road and MRT networks The park is in close proximity to research and tertiary institutions Industries Many leading corporations across a wide range of industries have chosen the Science park as their home for R&D activities. The Singapore Science Park offers research and IT space, catering to disciplines such as: Biomedical sciences; Information technology; Software development; Telecommunications; Electronics; Food technology; Flavors and fragrances; and Materials and chemical Ecosystem for complete work-play business lifestyle. Other value-creating amenities and services include: Foodcourts, creches, autobanking, clinics and shops; Intra-park and university bus shuttles; Lunchtime shuttles to 5 locations; Peak-hour bus shuttles to Mass Rapid Transit train stations; Healthy Lifestyle Week; Recreational activities eg. mini bazaars; and Network to Science Parks worldwide 82

84 Alpha A part 3/part 4-storey building with infotech/research/innovation units Capricorn A 5-storey building with a basement car park. Ideal for IT type and dry/wet laboratory based research companies Kendall Kendall is a 6-storey research building with bare units ideal for R&D, wet laboratory to software development and IT set-ups Aries A 4-storey research building. Ideal for R&D activities ranging from wet laboratory to software development/it set-ups Gemini A 4-storey R&D building with research and innovation centre units Galen 6-storey twin-block building with info-tech/ research/innovation units. Ideal for life science companies/software development & R&D Rutherford 4-storey multi-tenanted buildings with research units for lease CINTECH I, II,III and IV Multi-tenanted buildings. For IT and software companies Cavendish, Chadwick, Curie 4-storey multi-tenanted buildings with research units for lease. Ideal for R&D and laboratory based companies Faraday, Fleming 2-storey multi-tenanted buildings for research units and small converted fitted-up units for lease Maxwell, Mendel, Pascal, Pasteur Multi-storey multi-tenanted buildings with research units for lease Figure 4-8: Singapore Science Park 83

85 4.5.2 Hsinchu Science and Industrial Park (HSP) HSP is one of the best Hi-Tech clusters contributing ~10% to Taiwan s economy. HSP is located in Taiwan over 1600 acres and is one of the most significant centre s for semiconductor manufacturing. Companies: 500 Employees: 120, ,000 Sales: US$30 billion Major Industries Hi-tech Companies, optoelectronics companies, Bio-technology and telecommunication Major Companies Logitech, Macronix, D-link, Phillips, Realtek, Vanguard, Power chip Semiconductor Corp, Microtek Shanghai Caohejing Hi-Tech Park (CHJ) High-tech industrial development zone, as well as a national export processing zone The CHJ covers an area of sq.km. (3500 Acre); In 1984, founded as Caohejing Microelectronic Industrial Zone; Companies: 1,200; Sales and Export: US$ bn ; The annual sales revenue value per developed square kilometer : US$ billion; and Major Industries microelectronics, optical electronics, computer & software, new materials, biopharmaceutical, meter & instrument and aerospace 84

86 5 Concept master plan 5.1 Vision The vision of the Integrated Industrial Township is to create a new type of industrial township model for India that may be referred as Silver Wrapped in Gold, whereby industry pillars like high tech, R&D, Bio-tech (silver), can become the high tech catalyst to support a new, symbolic relationship of community clustering to surround it (gold). The amenities surrounding the industrial clusters forming the community will essentially include commercial, residential, education, research, recreation, offices & administration uses. The industrial city will thus be planned with the key objective to create a knowledge based ecosystem integrated with industries leading to innovation and economic development. 5.2 Key Design Principles Figure 5-1: SWIG Silver Wrapped in Gold The Integrated Industrial Township is to be developed adopting the Sustainable City Model to facilitate the creation of a sustainable township with quality infrastructure and living environment promoting a livework-learn-play environment within the proposed development. The key planning and infrastructure strategies that constitute the sustainable city model, along with other sustainable practices, are: Integrated sustainable site infrastructure o Energy generation and management o Water collection management o Waste management Urban culture and public space sustainable, livable solutions to improve quality of life Sustainable planning, engineering, architecture, landscape solutions Sustainable building materials Transport planning & mobility management 5.3 Sustainable Urban Practices The integrated sustainable site infrastructure may be achieved by adopting the following key strategies: Technology ensuring energy conservation All utilities/services coordinated through single agency through Smart Control in real time Censor based monitor systems Common Underground Utility Ducts 85

87 5.3.1 Technology Solutions Solid Waste Management Automatic Collection and Transportation System Water Supply Power ICT Hydro-pneumatic systems for water supply to reduce wastage of water Use of treated grey water for potable use Underground distribution Targeting high reliability Compact substations Substation & distribution automation Energy efficient practices Secure & resilient ICT environment Green Technologies Zero discharge Rain water harvesting and recycling Use of green construction materials and technologies Irrigation system for landscaping using STP water Solar thermal panels to provide for domestic hot water needs Photovoltaic roof & façade for green electricity Transport Planning Transport planning & mobility management strategies may essentially include planning for higher share of public transport supported by Intelligent Transport System, combination of external and internal mass movement systems to achieve the transport hierarchy, appropriate road ROW and junction design for conflict free traffic movement supporting disable friendly environment, planning for transit oriented development with pedestrian oriented internal movement supporting a walk to work environment. 5.4 Performance Parameters for Sustainable Developments a) Safety and Security fire detection & suppression system, preparedness to combat terror threats and natural disasters fire lifts, pressurized staircases, assembly areas, fire water tanks and pumping units, use of software/it to track, schedule and monitor fire drills, clear signage. Security personnel at gates, provision of CCTV, car entry and exit barriers/bollards. 86

88 b) Innovation LEED/ GRIHA Certification. Innovation aims to recognize the sensitivity of the campus towards environment and other key features of the campus which help in providing conducive work environment to the user. c) Use of renewable energy, life cycle costing, environmental education, energy audits, minimize use of ozone depleting substances, resource recovery from waste, water reuse and recycle, integrated pest management, company policy of green supply change d) Segregation of waste at source including e-waste, concept of zero discharge, use of locally available material for construction e) Operations & Maintenance f) Basic Amenities :social & physical infrastructure raw power gross connected load for tenants, drinking water facilities quality and quantity, availability of gym, childcare facility, convenience store, ATMs, restaurants and cafeterias, availability of car and bicycle parking space, provision of charging stations for electric vehicles. Business Infrastructure provision of business infrastructure including serviced offices, hotels/ serviced apartments, guest houses and auditoriums and conference rooms; disable friendly / equal opportunity g) Planning Highlights A grade of buildings industrial and non-industrial use h) Image & Branding Industry brands and education brands for institutes 5.5 Key Structuring Elements The key structuring elements for the concept plan have been formulated after detailed analysis of the site and its prevalent surrounding conditions. The positive aspects of the existing conditions have been utilized in order to arrive at a contextually sensitive concept master plan. These elements include: a) Site topography green network & open spaces b) Existing road networks and developments c) Prime locations Site Topography Green Network & Open Spaces The existing site topography and natural drainage patterns are one of the key structuring elements for the concept master plan. The formulation of open spaces within the site has been planned while preserving the natural drainage pathways with an approach to develop strategies for rain water harvesting that can facilitate a sustainable development. The site has some distinct lower elevation areas that provide an opportunity for collecting rainwater in small ponds that may be integrated with the landscape of the parks and green spaces planned within the Integrated Industrial Township. The positioning of these water bodies along the natural depressions of the site also proves advantageous as these areas become a natural drainage for surface run-off water within the site. Key points: Low lying areas within the site planned as key landscape zones/ public green areas within site; The landscape zones connected through continuous green network supporting a clean, green & sustainable environment within the industrial estate; Key green areas to be used as potential for creating alternate environments; Whenever possible, a designated green pocket in different land use zones is to be planned at 10 minutes walking distance; 87

89 Green corridors along canals and drainage channels to be integrated into the plan; and Green buffer along road right-of-ways planned as green interface between road traffic and pedestrian zones. 88

90 Figure 5-2: Site structuring elements existing site topography and road network 89

91 5.5.2 Existing Road Networks and Developments The circulation network planned within the site takes into account site access opportunities, connectivity to existing road network, access to existing industrial plots within the site and surrounding village settlements, connectivity across the railway line, people and goods movement and distribution within the site, public transport opportunities and linkages, road frontage opportunities and high value node development. The primary road referred to as the spine is planned as the major boulevard road carrying large volumes of vehicular traffic and public transport across the site. It is also referred as the people s movement corridor within the site and will also provide a continuous pedestrian linkage to the entire site. A separate goods movement corridor for industrial goods traffic is planned running parallel to the central spine providing connectivity across the length of the site through different industrial clusters. Existing east west roads within the site are extended to connect to the central spine at different junctions allowing efficient movement/ distribution of traffic to other roads within the proposed road hierarchy. The proposed network also ensures sufficient access/ connectivity to existing industrial plots within site and surrounding village settlements that currently have limited access by village roads passing through the site. Key points: Multiple entrances/ access points to site; Connectivity to sector roads and Eastern Peripheral Expressway; Connectivity to existing road network within site; Access to existing industrial plots within the site and surrounding village settlements; High value nodes along intersections; and Optimum road percentage and ease in phasing Prime/ Nodal Locations The land use distribution in the concept master plan takes into account prime real estate locations based on road frontage, access from primary road network, circulation network, public open spaces and junction locations. Nodal zones are also identified in around the large public green areas within the master plan. These are envisioned to be the major peoples zones of the site that generates a recreational character to the site. These nodal points are planned as public or cultural spaces that play a major role in adding quality to life within the city. The physical manifestation of these zones proposed at regular intervals in the form of various plazas within the commercial and residential plots, the central boulevard, the various smaller avenues etc. within the proposed master plan are factors that will contribute to this desired character. Key points: Most of the prime real estate will be along the 60m right-of-way complementing the real estate developments within adjoining Greater Noida sectors; The next degree of prime real estate will be along the Eastern Peripheral Expressway due to higher visibility, though limited access; Major junctions and crossing will assume higher value due to access and visibility; and Landscape/green areas as prime public zones within site. 90

92 Figure 5-3: Proposed movement networks 91

93 5.6 Land Use The concept master plan integrates the structuring elements into a cohesive and flexible framework that allows for compatible coexistence for different types of uses. The plan takes advantage of the opportunities such as the existing road network and site topography to develop a well defined movement and open space structure within the development. A comprehensive circulation network creates a legible web of roads having multiple access options to the site. It connects effectively with the external road network enhancing access to important land use zones within the site. 5.7 Land Use Allocation The land use distribution for the Integrated Industrial Township is arrived at through a detailed analysis of the spatial requirements of similar global benchmarks. This is further superimposed with the market assessment for the industry mix being proposed for the Integrated Industrial Township. The following distribution is thus a function of employment, revenue generation potential, and several other influencing factors. The land use for the development program summarizes the major distribution of activities within the available site area of ha. Approximately 51 percent of the total land is allocated for revenue generating industrial use. Of the remaining, a maximum of 32 percent has been used for transportation, utilities and green/ open spaces. The proposed land use allocation is provided in Table

94 Table 5-1 : Development programme summary Land use % Area (Sq m.) F S I* BUA (Sq.m.) Industry 50.8% 1,537,217 3,458,738 Hi-tech Industries 21.1% 638, ,435,754 Bio-tech Industries 13.7% 414, ,116 R &D 16.0% 484, ,089,868 Commercial Mixed Use 6.3% 190, ,765 Residential 11.1% 336, ,680,848 Utilities 1.5% 46, ,468 Greens & Water Bodies 13.4% 403, Roads 15.6% 471, Existing Structures 1.3% 39, Total 100% 3,024,921 5,940,818 * Note: As discussed with various stakeholders, there is flexibility of utilization of global FSI for different components as per the project requirements within the maximum permissible limit of global FSI assigned for the proposed Industrial Township in Greater Noida. The decision regarding utilisation of different components within the approved global FSI would be made by the competent authority or JVC constituted for the project. The concept master plan has been developed based on the approved global FSI and proposed differential FSI ranging from 2.25 to 5 for various land uses has been provided based on discussions with various stakeholders. The same has been discussed with Greater Noida Industrial Development Authority in coordination meetings regarding the project. Any change in allocation of approved global FSI on the proposed development may impact the overall project planning significantly. Refer to Annexure 3 for more details related to FSI norms. 93

95 With a global FSI of 2, the total built-up area amounts to approximately 5.9 million square meters. From the total developable area of ha, approximately 50.8 percent area has been allocated for industrial use. Approximately 6.3 percent area has been allocated for commercial mixed use as support to the industrial use. These areas will provide facilities like retail commercial, hospitality, health services, training institute and other activities. Approximately 11.1percent of the total land under Integrated Industrial Township has been allocated under residential use. The residential area has been planned along with all requisite facilities, amenities, commercial areas and green areas. Around 1.5 percent of the area is under utilities housing facilities such as water works (WW), sewage treatment plant (STP), power infrastructure and auxiliaries. Approximately 30.3 percent of the total area has been allocated for green/ open, water bodies and roads. Large green areas have been provided as breathing areas for the development providing an alternate environment for the industrial workforce within the township. These green zones have also been coupled with major transport nodes, retail and entertainment activities. These green areas planned as lungs within the residential and institutional areas help create an internal environment conducive to the surrounding land use. These have been provided to cater to the needs of the residing population with the major retail and social infrastructure bordering the public parks increasing access and usability for recreational and cultural activities within the green open spaces. Low-lying areas mapped within the site are proposed to be developed as water bodies, planned as part of the overall green open space structure of the site. These water bodies within the green areas have been provided for dual purpose. Apart from adding an aesthetically pleasing environment for the worker and resident population, they will act as natural water recharge ponds helping to recharge the ground water from the water collected through site drainage at certain key low-lying areas within site. They may also be developed as raw water storage tanks for industrial and domestic use purposes within the development Key Land-use Components of the Concept Master Plan The land use plan provides an opportunity to cater to varied needs and demands of individual units/ businesses/ housing requirements. Utilities have been integrated into the plan in order to provide for reliable and continuous infrastructure for the industrial units and residing population. The spatial concept land use plan is illustrated in Figure 5-4 and Figure

96 Figure 5-4: Land use distribution 95

97 Figure 5-5: FSI distribution diagram 96

98 Figure 5-6: Concept master plan 97

99 Figure 5-7: Perspective view 1 - concept master plan 98

100 Figure 5-8: Perspective view 2- concept master plan 99

101 5.7.2 Industrial Use A total of Ha of land area is allocated for industrial uses which have excellent access to the existing and proposed road network. The industrial use zone is planned towards the north and along the peripheral roads of the site for easy access and connectivity. The different industrial clusters are planned on either side of the primary road network with the hi-tech industries planned along the 60m and 80m arterial roads, biotech industries planned along the length of the goods movement road and R&D sector planned as a consolidated cluster around a central park space within the master plan. The hi-tech industrial plots will likely be characterized by low density and large footprint developments. Hi-tech industries are likely to include sub-sectors like fabrication (semiconductors) industries, nanotechnology and optoelectronics. The Industrial township will also support research and development in key sectors like IT, electronics, automobile, food, pharma, healthcare, etc. that will give a boost to new product development, software development, auto design, drug design and pharmaceuticals, hardware and product design. It is also likely that several of these buildings will be functional pre-fabricated buildings built to suit individual tenant needs. These developments could take the form of industrial sheds, flatted factories, or industrial estate type of buildings with multiple occupancies. The R&D and bio-tech industries could be in the range of 7-10 floors with the occasional signature buildings rising to over 15 floors. Biotech planned as one of the key industry sectors in the Integrated Industrial Township is likely to support allied sectors like food, pharma, healthcare and agriculture present in the UP region. Bio-pharma, bio-services (clinical research), bio-agri, bio-industrial and bio-informatics are some of the key sub-sectors that may be planned as part of biotechnology industries. The highlight of the industrial area is the provision of common areas as alternate environment for the workers and as a space for support facilities within the industrial areas. The linear green park space planned along the central boulevard road within the industrial area forms the major public open space that provides relief zone in the middle of the industrial zone within the master plan. The knowledge centre within the R&D will be a combination of a campus style of development with campus quads type of green and open spaces. This character would transition into a research and corporate office environment signaling the transition to the R & D and biotech industry cluster. The knowledge and research campus will be a medium density medium rise development and may accommodate incubation units and training centres. Generally limited to 7 floors, the occasional signature buildings in the campus could rise to 10 or 12 floors. This zone would reflect a development character that focuses on walkability, high quality streetscapes, multi-modal forms of transportation, and a focus on out-door and public spaces. Bringing in a high quality of branding and signage in this part of town will become a required component to project the image of world class knowledge and research destination. 100

102 Figure 5-9: Industrial clusters 101

103 Figure 5-10: Perspective view of industries within site Figure 5-11: R & D cluster 102

104 5.7.3 Residential Use The residential area has been zoned in the south western part of the site in close proximity to commercial use within the master plan and away from the high density industrial areas. It is proposed along the central boulevard road forming the outer periphery of the central park planned towards the southern side of the site. The residential area will have all supporting facilities and amenities including a mixed commercial area, retail and social amenities apart from parks and green spaces to create a healthy residential environment. The residential area will constitute of multi-storeyed flats with the scale of development in the range of 20 to 35 stories. Figure 5-12: Residential clusters Commercial Use The commercial zone is strategically located along the Boulevard road. Planned along the existing sector roads and prime arterial roads within the site, the commercial areas are conveniently accessible from all zones within the master plan area, while also being reachable to patrons residing outside the site. Forming gateway to the development with its presence at key nodal/ entry points of the site, the commercial and retail units follow the boulevard road to form the main town centre district within the development. As the name suggests this district is the center of town a meeting place for retail, offices, residential and knowledge clusters. The town center is characterized by a central park space with streets and buildings built to a zero-lot-line configuration. Buildings overlooking the central park space are intended to be commercial and office mixed use high rise structures that tower 30 to 50 floors in height. These are A 103

105 grade business, hotel, administrative or commercial developments with retail services at the street level effectively making them mixed use developments. The town center is intended to be a people-centric destination within the Integrated Industrial Township with activities for all. Every day and boutique retail, movie theatre, restaurants with adequate on-street and off-street parking, opportunities for multiple activities would make the town center a lively place to live, work, or play. Commercial area to provide a mix of environments in the park; A meeting point for residential and industrial populations; It will accommodate necessary social infrastructure, commercial areas and other facilities; Surrounding residential mass to draw benefits from the commercial area; and It will have offices and hotels in close proximity to the industrial area Figure 5-13: Commercial & industrial clusters 104

106 Figure 5-14: Perspective view of commercial cluster Figure 5-15: Commercial centre & residential linked to the central green space 105

107 5.8 Movement & Connectivity Primary intent of the proposed transportation framework is to devise a strong well-coordinated transport system for movement of all people and goods within the industrial township, well connected to the existing road network outside the site. The network of roads planned within the site also ensures that proper access is made available to all the plots planned in different land use zones. The core objectives of the transportation plan of the Integrated Industrial Township are: Spatial and functional integration between different land use districts/zones of the industrial township with well-defined road hierarchy; Provision of higher order public transport within the overall transport framework to provide choice of mobility for all users and reduce dependency on private modes transport to access the site; and Integration of pedestrian and other non-motorized movements in transportation plan Road Network & Hierarchy The main objective of the proposed circulation network is to achieve conflict-free movement of pedestrians, public & private vehicles and goods carriers within the site. This has been achieved through classification of roads based on land use disposition, creating conflict free movement by separating roads serving different purposes from each other. Movement network is devised out of the existing road network and village roads within the site, providing access to existing industries and settlements falling within or surrounding the Integrated Industrial Township; The entry and exits to the site are initiated at points most suitable to take a direct connection from existing road network keeping in mind the prime locations that are commercially viable in a larger context; Direct access is established from existing sector roads from the north and west sides of the site. Access is also provided from the Eastern Peripheral Expressway to establish a strong north south connectivity within the site; Strengthening of existing village roads providing access across the railway line in east improving east west site connectivity; Movement of goods traffic is separated from the central spine which forms the prime people s movement corridor with public transport running along boulevard road; Movement network also follows the natural drainage paths which aid in rainwater harvesting and directing storm water/ run off to adequate water retention areas; and Dedicated pedestrian and cycle paths along the vehicular lanes are proposed supported with the green connectors that run parallel to the movement corridor. Therefore, good segregation of the pedestrian and vehicular traffic is achieved 106

108 Figure 5-16: Proposed road network & hierarchy 107

109 The system comprises three classes of roads: Primary road network The primary road network consists of the three major roads that act as major entry/access points for the site from different directions. The central spine that runs throughout the length of the site provides access from the canal side and from the Eastern Peripheral Expressway. This key north-south connector road is a 60m ROW (refer Figure 5-17) designed as a median divided eight lane roads with green buffers on either side that makes it a characteristic boulevard road within the site. This central spine or the boulevard road is planned as a Bus Rapid Transit (BRT) corridor with a dedicated bus lane in each direction. It is the main focus of the circulation network within the site and acts as the meeting point for other secondary and tertiary roads. Another primary road provides direct access to the site from the 60m external road that runs on the western boundary of the site. It is one of the key entrances to the site establishing direct connectivity to other sectors within Greater Noida in the west. This road runs across the width of the site and forms the prime east west connector road within the site. This is proposed as a 40m wide road and envisioned as a primary avenue to the site enveloped by low height trees on its either sides. A major junction is created on the proposed plan where this Avenue road meets the Boulevard road. The 40m wide corridor allows for a provision of dedicated cycle lane and foot path within the ROW as shown in Figure This would aid the movement of workers and residents to their job locations. Planting strips on either side of the road is also provided as multi-utility zone for locating street lights and other underground utility provisions. Both the east west and north south connector roads are primarily associated with movement of people across different land use zones within the site. Being the prime people s movement corridor these roads are likely to accommodate most of the vehicular traffic and higher order public transport like the Bus Rapid Transport and Light Rail Transport/ metro in future phases. 108

110 Figure 5-17: 60m ROW road section with BRT corridor Figure 5-18: 40m ROW road section - Avenue road 109

111 Secondary road network The secondary road network forms the next level in the road hierarchy. These roads are planned to intercept traffic from inside various land use zones and feed it into the primary roads. These streets provide the key connections necessary to access the central spine road and help in the distribution of traffic within the site. These distributing streets along with a key parallel street to the main spine form the all important network of streets that will carry the bulk of industrial, residential and other traffic within the Integrated Industrial Township. These are designed as 30m ROW roads, comprising a divided dual two-lane carriageway with a lane width of 3.5m, separate cycle-tracks and pedestrian footpaths and a 3m wide median (refer Figure 5-19). An alternative road cross section for secondary roads, where appropriate, may be proposed with provision of parallel on-street parking on either side within the ROW as a response to adjacent retail or mixed use development. Industry priority goods movement road is an internal spine running parallel to the people s movement road, provided for the efficient movement of industrial traffic from various industrial zones. It is also categorized as a secondary road due to its high relevance in catering to various industrial plots. It is also designed as a dual carriage-way road that will facilitate the movement of high truck traffic volumes along the length of the site and also disperse traffic to other external road network. The 30m wide corridor allows for a provision of dedicated cycle lane and foot path within the ROW. This would aid the movement of industrial workers to their job locations. Planting strips on either side of the road is also provided as multi-utility zone for locating street lights and other underground utility provisions. Figure 5-19: 30m ROW road section 110

112 Tertiary road network The tertiary road network intercepts traffic from inside different land use zones and feeds it into the primary and secondary road network. These roads are proposed with 24m ROW cross section which comprises a single two lane carriageway with a 3.5m lane width, provided with parallel on-street parking on each side of the road. Pedestrian footpath is separated from vehicular traffic by a 1.2m wide planting strip on either side of the road. This ensures a safe pedestrian friendly environment within commercial and residential areas (refer Figure 5-20). Tertiary roads are likely to experience slow moving vehicular traffic with majority of pedestrians and a high number of bicyclists using the street right-of-ways. These roads are thus proposed to be part of the pedestrian priority network connected to the pedestrian and cyclist trails planned through the public green spaces in the Integrated Industrial Township. Pedestrian friendly streets are sustainable only complemented with an efficient public transportation system. The Integrated Industrial Township is therefore proposed to be developed with a higher order public transport system along the primary streets supported with an efficient feeder transport network proposed along the secondary and tertiary streets. The transport network is also proposed to be supported by an Intelligent Transport system (ITS) with an aim to provide innovative services relating to different modes of transport and traffic management. This will enable various users to be better informed and make safer, more coordinated, and 'smarter' use of transport networks planned within the hi-tech township. The transport network is proposed to include mass transit systems like the Bus Rapid Transport (BRT) and Light Rail Transport (LRT)/metro link in future. Dedicated pedestrian foot path and bicycle lanes along all street sections will also ensure safety, promoting walkable, and pollution free environment within the Integrated Industrial Township. Figure 5-20: 24m ROW road section 111

113 Table 5-2: Proposed Road Designations for the Integrated Industrial Township project Road Hierarchy Proposed ROW Functionality Primary Roads North South Spine Road 60 Eight lane divided BRT corridor providing access to internal road network; connecting the 80m sector road and EPE. Major entry/access for the site from north & south. East West connector Road 40 Six lane divided avenue road connecting to the central spine; major entry/access for the site from west. Secondary Roads 30 Four lane divided road providing the key connections necessary to access the central spine. Goods Movement Road 30 Four lane divided road for goods movement across site. Tertiary Roads 24 Interface between primary and secondary streets. Also provides access to individual parcels Potential Transit Opportunities Given the size of the development of the Integrated Industrial Township and the employment it is likely to generate, it is important to provide an efficient public transportation system that allows easy movement of masses to the industrial and residential area planned within the site. The presence of transit will also help reduce dependence on the private vehicle, provide commuters the choice of mobility, and help in managing parking expectations within public and private areas of the development. Bus based transit, like the Bus-rapid transport (BRT) is plugged into the people s movement corridor along the central spine road with key transit stops located along the prime route to make transit available to the user within a 10 minute walking distance. The potential transit opportunities within the site are illustrated in Figure

114 Figure 5-21: Potential transit opportunities within the site 113

115 5.8.3 Pedestrian Priority Network A pedestrian priority route network is planned along the proposed street network and green open spaces with the objective of bringing pedestrians closer to commercial centers, parks, open spaces, social infrastructure facilities and transit stops promoting pedestrian safety and access within the development. The goal of developing a pedestrian network plan is to establish a mobility system that will encourage and enhance alternative modes of transportation, i.e., walking, biking and transit, within the Integrated Industrial Township. The proposed pedestrian network will provide the most direct connections between land use and transit connecting multiple function districts and land uses. The pedestrian route network also identifies key routes that serve the local transit connecting to the bus transit route and metro route running along the arterial streets within the master plan. 5.9 Green & Open Space System Green and open space structure of the Integrated Industrial Township is planned while preserving and maintaining natural drainage paths and respecting the contour and slope pattern. The open space system takes cues from the overall site topography and natural site slopes which further can be utilized for storm water management and rain water harvesting as well as ground water recharge. The site has some distinct lower elevation areas that provide an opportunity for collecting rainwater in small ponds that may be integrated with the landscape of the parks and green spaces planned within the Integrated Industrial Township. Surface runoff water from open spaces and paved areas may be guided through natural drainage channels and stored in these ponds and lakes. These structures not only provide water for surrounding landscape, but also increase groundwater recharge. These are referred as ground water recharge zones within the hi-tech city master plan. The open space system may be classified into two main categories within the Integrated Industrial Township development: Formal and active open spaces in the form of parks and play areas Large pockets of public green and park spaces have been provided in the two prime land-use districts within the Integrated Industrial Township. These form the central focus within each district constituting the major industrial and residential mixed use pockets of the development. Green pockets planned on either side of the boulevard road also help tie the main retail and office mixed use area with residential zone on one side and institutional zone on the other side. The park spaces planned in each district connects with other green pockets and open space by way of green streets (tree lined boulevards) to form a continuous green system. This system of connected formal and open spaces forms the backbone for the recreational and active open space system within the hi-tech township. Walking and biking trails planned within these green pockets have the potential to connect the residential areas to different employment, institutional and commercial centers planned within the township. These form alternate routes, free of vehicular traffic connecting to the local street system providing a safe pedestrian and cycling environment. It also enhances choice of mobility amongst residents. There is also the potential of using large areas of this active green space for rainwater harvesting technologies that focus on ground water recharge. The low-lying areas within these green spaces are developed as water bodies that collect surface runoff water from soft and hardscape areas which may also be re-used for landscaping purposes. 114

116 Open spaces in the form of buffers to natural or manmade rights of ways Best practices for environmental considerations mandate that seasonal natural flood drains be protected from any development for a distance of meters on either side of the high flood level. The Integrated Industrial Township master plan provides a continuous green buffer along the existing Kot Escape canal which forms the north western boundary of the site. This also provides a well defined, landscape edge that may be utilized for several active and passive recreational uses like parks, nature trails, botanical gardens just at the entrance of the industrial estate in the north of the site. Green connectors are also provided along all movement corridors in the industrial, residential and institutional zones of the Integrated Industrial Township culminating in larger green respite spaces. Semipublic/ Public activities may also be located along these corridors making them more interactive and developing inclusive public realm. The green/open space structure also would contain on-site utility and service areas in accordance to slope and accessibility. Figure 5-22: Institutional and commercial use planned around the central park space 115

117 Figure 5-23: Open space structure 116

118 5.9.1 Key Landscape Strategy The overall landscape strategy needs to consider the following ideals: 1. Serve as a unifying element; 2. Contribute to the overall sustainability of the site; and 3. Create a compelling landscape experience Figure 5-24: Main features of the Central Park 117

119 6 Traffic Analysis Traffic estimation for the Integrated Industrial Township City has been carried out by the consultant to determine the capacity of the arterial roads for smooth and unhindered functioning. As per the concept master plan, the Integrated Industrial Township city will host parallel arterial roads each of which will provide connectivity to the Eastern Peripheral Expressway (EPE). Peak hour traffic for the horizon year has been estimated based on the employment, population and number of visitors in the city. Total number of trips generated from different land uses per day is given in further graphically aided by Figure 6-1. Figure 6 1: Daily people trips Table 6 1: Daily people trips Land Use Employees Population Visitors Total Hi tech Industries Biotech Industries R&D Commercial mixed Residential Existing Settlement Total

120 6.1 Traffic Study Methodology Various assumptions taken into consideration while estimating the peak hour traffic for the horizon year are listed in the following sections. Employee and Visitors Trip Rates: Based on the built-up area for different land uses number of employees and visitors were estimated taking into account the area assumptions presented in Table 6-2 and Table 6-3. Table 6 2: Employee generation rate S. No. Land Use Area per Employee (sq m) 1 Industries Commercial 5 Table 6 3: Visitor Generation Rate S. No. Land Use Area per Visitor (sq m) 1 Industries 25 2 Commercial 24 Residential Composition: All the residential buildings have been assumed to be of a unit flat area of 2000 Sq ft. Residential Trip Generation: Following assumptions have been taken into consideration while calculating the number of people residing or visiting the residential complexes planned within the industrial township. Table 6 4: Residential trip generation S No Particulars Value 1 Household Size 4 2 Per capita Trip Rate Visitors (%) in Population 0% Peak Hour Traffic: Percentage of traffic plying in a peak hour on any given day has been calculated as per the assumptions presented in Table 6-4. Residential visitor trips have not been considered by the consultant due to their very low contribution towards total traffic generation. 119

121 Table 6 5: Peak Hour Traffic % S No Land Use Employee Visitors 1 Industrial 50% 5% 2 Commercial 15% 2% 3 Residential 20% 0% Traffic Composition: The traffic has been assumed to be comprised of conventional vehicles like private cars, two wheelers, cycles and public transport like buses and metro rail. Share of each mode as per land use is presented in Table 6-6 Table 6 6: Traffic composition % of employees S No Vehicle Type Industrial Commercial Residential 1 2 Wheeler 10% 10% 20% 2 Auto Rickshaw 5% 5% 5% 3 Private Car 10% 10% 15% 4 Shared Car/Taxi 5% 0% 0% 5 Bus 20% 25% 15% 6 Metro 30% 30% 30% 7 Cycle/Walk 20% 20% 15% Total 100% 100% 100% 120

122 Table 6 7: Traffic composition % of visitors S No Vehicle Type Industrial Commercial 1 2 Wheeler 20% 10% 2 Auto Rickshaw 5% 5% 3 Private Car 25% 10% 4 Shared Car/Taxi 10% 5% 5 Bus 10% 20% 6 Metro 25% 20% 7 Cycle/Walk 5% 30% Total 100% 100% Average vehicle Occupancy: Standard prevailing vehicle occupancy norms have been taken into consideration as presented in Table 6-8 and Table 6-9. Table 6 8: Average vehicle occupancy for employees S No Vehicle Type Industrial Commercial Residential 1 2 Wheeler Auto Rickshaw Private Car Shared Car/Taxi Bus

123 Table 6 9: Average vehicle occupancy for visitors S No Vehicle Type Industrial Commercial Residential 1 2 Wheeler Auto Rickshaw Private Car Shared Car/Taxi Bus Freight Vehicle Tonnage Share: Freight being generated by the industries in the Integrated Industrial Township has been assumed to take a mode wise share as presented in Table 6-10, with the average tonnage per mode standing as depicted in Table Table 6 10: Tonnage share % S No Industry Type LCV 2 Axle 3 Axle MAV 1 Electronics and Integrated Industrial Township 20% 20% 40% 20% 2 Automobile and Auto ancillary 10% 10% 30% 50% 3 Agro and Food processing 40% 30% 25% 5% 4 Pharmaceuticals and Bio tech 30% 30% 30% 10% 5 General manufacturing 20% 20% 40% 20% Table 6 11: Mode wise tonnage capacity S No Mode Average Tonnage 1 LCV Axle Axle 18 4 MAV 25 Industrial Tonnage Output: Tonnes of goods produced per hectare of industrial land per day depending upon the industry type is presented in Table

124 Table 6 12: Industry wise tonnage output S No Industry Type Tonnes/Ha Tonnes/Ha/day 1 Electronics and Integrated Industrial Township Automobile and Auto ancillary Agro and Food processing Pharmaceuticals and Bio tech General manufacturing Peak Hour Freight Traffic: A standard 20% peak hour percentage has been assumed for all freight modes. Pass by and Internal Trips: Commercial trips generated in the region are reduced by 50% and Industrial trips generated are reduced by 41% to account for the double assessment of internal trips within the region. Furthermore, a two way trip factor of two has also been incorporated. Capacity per lane in terms of PCU/hour has been taken as 1290 PCUs as recommended by IRC 106:1990 for an 8 lane arterial road. 6.2 Traffic Assessment Based on the assumptions stated in the previous section a traffic assessment exercise was carried out by the consultant, summary of which has been presented in Table 6-13 and Figure 6-2. Table 6 13: Total estimated vehicles and PCUs in peak hour Land Use Total Passenger Vehicles Total Freight Total PCUs Hi tech Industries Biotech Industries R&D Commercial mixed Residential Existing Settlement Total

125 Number of PCUs Hitech Industries Biotech Industries R&D Commercial mixed Use/Retail Residential Existing Settlement Land use Figure 6 2: Peak hour PCUs Mode-wise PCUs generated in peak hour can be observed in Figure 6-3 and Table Table 6 14: Mode wise total estimated vehicles and PCUs in peak hour Vehicle Type Total Vehicles Total PCUs 2 Wheeler Auto Rickshaw Private Car Shared Car/Taxi Bus Total

126 Figure 6 3: Mode wise peak hour PCUs Based on the peak hour traffic estimated for the Integrated Industrial Township and the proposed/existing road networks in the immediate vicinity, different road sections with number of lanes required have been described in Table Table 6 15: Lane capacities Road Section Road Width (m) Lanes Greater Noida Sector Road 60 8 Central Arterial Road 60 8* Outer Arterial Road 30 6 *NOTE: Lanes provided on the central arterial road may decrease with the advent of BRT effectively leaving around 6 7 lanes for vehicular traffic. The Greater Noida 60m ROW sector road has been assumed to serve both the Greater Noida sector traffic as well as the Integrated Industrial Township traffic. Out of the total 8 lanes provided, only 6 lanes have been assessed for the Integrated Industrial Township traffic, leaving the remaining lanes for Greater Noida sector traffic. Also it has been assumed that sufficient access points for the land uses available along the arterial roads will reduce the traffic on secondary dispersal roads. Figure 6-4 portrays the road network for the Integrated Industrial Township. 125

127 Figure 6 4: Road network for the Integrated Industrial Township 126

128 7 Phasing strategy 7.1 Key Considerations for Phasing The phasing strategy for the development takes a number of factors into consideration. Foremost amongst those is connectivity with existing network of roads. At present, the site falls along already planned sector roads of 80 m and 60 m ROW of Greater Noida. It also has an existing road infrastructure in place in some parts of the site which has been integrated with the overall movement structure of the Integrated Industrial Township. Visibility is another important criterion for phasing of this Industrial Township. Higher visibility of plots along the expressway and arterial roads will fetch higher returns in terms of higher real estate potential due to better connectivity potential and other location factors that benefit the site along these primary arterials and sector roads. Thus real estate potential of the site is another factor that has been considered in tandem with the cost. Areas with lower real estate potential will fetch lesser returns in comparison to those with higher visibility and connectivity. The other most important consideration is that of infrastructure availability. Availability of water, power and disposal of sewage and effluent is a key requirement for the industries to function from phase 1 itself. It becomes pertinent that A-grade infrastructure is developed from the beginning itself within the township to make it self-sustaining and increase its attractiveness. Cost is another important factor to sustain the development of the township in the longer run. Although internal to the developer, these considerations will influence the development of all the phases. The extent of land developed in each phase will demand laying/ stretching of infrastructure to those parcels. Also, an informed decision needs to be taken towards matching infrastructure development and demand. Market demand and potential industries in each sector identified within the industrial township is another important factor that will influenced the types of uses incorporated in each phase. Market demand is a variable that needs to be revisited and examined at strategic junctures of the project. Demand for the types of industries, industry typology and plot sizes will play an important role during the course of the project as demand for various sizes of plots and typology may change in future phases. Phasing plans will need to respond and be modified as per requirement. With regard to the overall phasing strategy adopted for the project, the development will be marketed in six different phases of five years each (refer to Financial Analysis Chapter 10 for details). However, five years is too short period for the purposes of infrastructure planning for any site. Therefore, for the purposes of infrastructure and land use planning, the entire project has been divided into three development stages of ten years each. The infrastructure and land use planning will be done for a period of ten years, and each stage will then be marketed into two different phases of five years each. The following sections illustrate the various phases of infrastructure and land use development of the Integrated Industrial Township along with their considerations. 127

129 Phase I & II Phase III & IV Phase V & VI Figure 7-1: Phasing diagram 128

130 7.1.1 Phase 1 & 2 The first stage of development combines the first two phases of land use and infrastructure development planned over a stipulated period for the development of the industrial township. These have been primarily demarcated as two independent clusters of development supported by existing and proposed roads and other infrastructure planned within the site. One cluster of development including hi-tech industry, R & D services plots and signature commercial building lies between the 80m ROW sector road and 40m ROW Avenue road taking advantage of higher visibility and available connectivity via the existing road infrastructure. The second cluster including residential, commercial and signature bio-tech industry development are planned along the 60m ROW sector road adjoining the Eastern Peripheral Expressway (EPE). The industrial sites along the 80m and 60 m ROW arterial roads will create higher visibility for signature industrial development within the proposed Integrated Industrial Township. The 60m ROW central spine road and the 40m ROW Avenue road are prime arterials connecting across the length and width of the site in either direction. The central boulevard road is also proposed to carry the prime mode of public transport in the form of BRT. It is also proposed to carry the primary underground utility duct across the length of the site bringing infrastructure facilities to door step of various land uses. Development of the 40m ROW road provides direct connectivity to the 60m ROW road abutting the site in west, connecting the industrial development to other residential areas planned across the 60m ROW road. These roads may thus be strengthened and developed in the initial phases within the Industrial Township. 72 percent of the total area under transportation is proposed to be developed during this period with corresponding infrastructure corridors. About 40 percent of the total site area is proposed to be developed during this phase. Approximately 30 percent of the total industrial development is proposed to be planned in this period, supported by the prime connector and transport corridor within the site. This initial phases of development also includes development of key infrastructure facilities such as water works and STP with commissioning of first modules supporting the industrial pockets. The commercial plot adjoining these industrial pockets, at the junction of the 40m ROW avenue road and 60m ROW boulevard road is also included to be developed in this phase. The commercial mixed use will be useful providing mix of activity, supporting workers working in the industrial area. This prime commercial development planned at entrance of the site can also prove to be one of the key anchor developments drawing attention of the surrounding population to the Integrated Industrial Township. The strip park along the boulevard road and the public greens around the large water body around the R&D industrial plots are also proposed to be developed in initial phases as a demonstration area communicating the overall vision and intent of the industrial estate. Residential plots along the Expressway and existing internal loop road are also proposed to be released in the first phase to offset the cost of development of industrial plots in these phases. These contribute to 41 percent of the total residential development planned within the Integrated Industrial Township Phase 3 & 4 The second stage of development combines the next two phases of land use and infrastructure development of Integrated Industrial Township. It is planned to be the largest development phase with approximately 36 percent of the area being developed during this period. It is essentially expanded along the central spine road which is the prime arterial connecting the site to 60m external sector road in the north and Eastern Peripheral Expressway in the south. 47 percent of the total residential area is also proposed to be developed during this period which will primarily cater to higher and middle income groups. Major expansion and improvements to the green network will also be taken up during this period 129

131 of development in particular for residential areas and commercial areas. This will include the development of the central green core with large central lake feature as potential water recharge zone surrounded by commercial and residential towers Phase 5 & 6 This stage includes the final phases of development of the Integrated Industrial Township. It is proposed to primarily include the plots with maximum visibility along the 80m ROW external road and plots at the periphery of the site abutting the railway line. The development in the final phases also includes major commercial mixed use development planned within the central core of the development adjoining the proposed central greens and water body. These plots shall realize their full real estate potential after the successful development of major industrial plots and central core of the site. Approximately 34 percent of the remaining industrial plots and 34 percent commercial area are proposed to be developed in this period. Table 7-1: Land use phasing Land use Phase 1 & 2 Phase 3 & 4 Phase 5 & 6 Industry 30% 36% 34% Commercial Mixed Use 27% 39% 34% Residential 41% 47% 12% Utilities 57% 43% 0% Greens & Water Bodies 40% 50% 10% Roads 72% 28% 0% Total 40% 38% 22% 130

132 8 Physical Infrastructure This chapter provides detail of the proposed infrastructure components of the Integrated Industrial Township. It is a green-field project and as of now, minimal physical infrastructure and urban services exist within the site or around it. The project has been envisioned as an infrastructure-led project, whereby the availability of infrastructure can behave as the key determinant for realizing the development potential of the project. Provision of infrastructure facilities for ensuring adequate water supply, efficient sewerage system & storm water drainage system and solid waste management, and availability of adequate power will be important aspects in attracting potential investments to the project area. The assessment for the physical infrastructure on the proposed concept master plan has been carried out on the basis of demand assessment of the various land uses. It is also to be undertaken with respect to the projected employment, area of plots, built up areas and the population estimate. Some of the key strategies for provision of infrastructure for the Industrial Park are as follows: In principle, it is desirable to develop all major trunk systems within the ROW of the proposed roads. The trunk system will accommodate provisions of water supply, storm water drainage network, power, sewerage, and IT related infrastructure. Thus, it is important to do space planning in the form of service corridor/ common infrastructure utility duct for accommodating all the infrastructure services including telecommunication network and gas network; Provision of a decentralized wastewater recycling system is inevitable and environmentally important. It is desirable to promote the decentralized wastewater treatment system as the treated wastewater (recycled at the tertiary level) can be suitably used for various uses such as urban irrigation, landscaping, industrial use, construction purpose, toilet flushing and ground water recharge etc. after a tertiary level treatment; The existing and natural drainage system of the site needs to be respected and retained. These can be eventually utilized as an open space system in the project area; and In order to achieve a high-quality built and visual environment and attractive streetscapes it is desirable for all the trunk services in the Industrial Township to be laid underground. Various infrastructure components of the Integrated Industrial Township are discussed in the following subsections with respect to the criteria for their demand, key design considerations and assumptions, infrastructure sub-components/system and broad costing. 8.1 Water Supply Infrastructure Total water demand for the Integrated Industrial Township has been assessed based on the land area, projected population and potential employment. For the purpose of calculating the total water demand, per capita consumption of 150 litres per day (LPD) and 45 litres per day (LPD) have been considered for domestic and floating population respectively. For industrial water demand, average demand of 30,000 litres per hectare (lph) has been considered. The total water demand based on the above-mentioned norm is about 15.3 MLD (refer Table 8-1for details). 131

133 Table 8-1: Water demand for the Integrated Industrial Township Land use BUA (sq.m.) BUA (Ha) Population & Population Employment & Densities Employment Unit/ Rate Industrial Water Demand (MLD) Potable Water Demand (MLD) Water Demand Unit/Rate Total Water Demand (MLD) Industry 3,458, , Industrial Water litres/ha; Potable water 45 lpcd 7.2 Hi-tech Industries 1,435, per ha 27, lpcd 3.1 Bio-tech Industries 933, per ha 9, lpcd 1.7 R &D 1,089, per ha 21, lpcd 2.4 Commercial Mixed Use 761, Sqm/person 30, lpcd 3.0 Residential 1,680, persons per dwelling unit (DU area - 200sqmt) 33, lpcd 5.0 Utilities 39, Greens & Water Bodies - - Roads - - Total 5,940,

134 Number of alternative sources of water is available for meeting the water demand of the Integrated Industrial Township. Primary source of water for Greater Noida is ground water which is abundantly present in the overall project region. Greater Noida has also been allocated share of the Upper Ganga Canal (about 85 cusec) and in near future water from this source may also be used for the Integrated Industrial Township. Another potential source of water is the recycled water from an STP of 137MLD, currently under construction in Greater Noida. As part of Pre-feasibility study undertaken for recycled water, an option of provision of high-grade water for industrial processing within the Integrated Industrial Township has been proposed. Thus, three different sources of water are available for the Integrated Industrial Township. As the main water sourcing and distribution network, first level comprises of water supply main, storage reservoir and allied works. A master storage reservoir with one-day storage, pumping station (civil and E/M works) from source to reservoir has been proposed as the trunk water network. Trunk water network also proposes pumping sub-mains from water reservoir to the sector level service storage reservoirs. 8.2 Power Infrastructure For the purpose of the demand estimation, power requirement based on the area of the land proposed under various uses has been considered. A net diversity factor of 0.7 is also considered at the overall site level to achieve a realistic estimate for the power infrastructure. Table 8-2 provides the use-wise demand estimates for the power requirement and the total power demand for the industrial park is about 205 MW. 133

135 Table 8-2: Power demand for the Integrated Industrial Township Power Requirement Land use BUA (sq.m.) Lighting & Power Load per Sqm. Total Electrical Load (KW) Diversity Factor Diversified load in KW Industry 3,458, , ,277 Hi-tech Industries 1,435, , ,760 Bio-tech Industries 933, , ,586 R &D 1,089, , ,931 Commercial Mixed Use 761, , ,471 Residential 1,680, , ,255 Utilities 39, Greens & Water Bodies - 3 1, Roads , ,827 Existing Structures Total 5,940, , ,345 Net Diversity Factor 0.7 Final Demand Load (KW) after Network diversity factor 205,342 Final Demand Load (MW) after Network diversity factor

136 8.3 Waste Water Infrastructure The demand assessment for the waste water generation has been carried out based on the CPHEEO norms for the residential sewer collection and industry practice for the industrial effluent. For estimating the sewage generation, 80 percent of the supplied water to the residential, industrial and other uses is considered as the net waste water. The total quantity of waste water generation is about 12.3MLD, which constitutes about 5.8MLD of effluent waste water from proposed industrial areas and remaining as waste water from non industrial uses (refer Table 8 3 for details). Table 8-3: Waste water generated within the Integrated Industrial Township Land use BUA (sq.m.) BUA (Ha) Total Potable Water Demand (MLD) Total Sewage Load Generated 80% of water demand (MLD) Industry 3,458, Hi-tech Industries 1,435, Bio-tech Industries 933, R &D 1,089, Commercial Mixed Use 761, Residential 1,680,848 Utility 39, Greens & Water Bodies - - Roads - - Total 5,940,

137 The total recycling water demand of 2 MLD for green areas have also been estimated at 5 litre per Sqm of green area within the Integrated Industrial Township. 8.4 Other Infrastructure Telecommunication network An allocated telecom network is expected to pass through the site and appropriate connections can be drawn from the same line after permissions from the relevant authorities. Considering the private nature of telecommunication services, it is envisaged that these shall be provided by any approved service provider. Thus, this component is not considered for costing and it is recommended to reserve space within the service corridor/ common infrastructure duct planned along the roads for installing telecommunication ducts Gas network There is no existing or proposed gas line passing through the site. Hence adequate connection should be allocated so that connection can be drawn from the same line after permission from relevant authorities. In the service corridor/ common infrastructure duct planned along roads, provision for installing the gas pipeline may be considered. Figure 8-1 provides location of utilities planned within the Integrated Industrial Township. For further infrastructure demand estimate related assumptions refer to Annexure

138 Figure 8-1: Utilities locations proposed within the Integrated Industrial Township 137

139 9 Preliminary Cost Estimates 9.1 Approach to Project Costing In this chapter, cost estimates of all the physical infrastructure components have been assessed. Key considerations for the project costing undertaken in this chapter are outlined below: Costing is carried out based on the broad demand, technology and system elaborated in Chapter 8; Costing is also based on the phasing of the development of the industrial park, carried out as part of Chapter 7; Unit rates for costing are derived from relevant schedule of rates, other projects of similar nature/ sector and prevalent market rates; Cost of gas infrastructure is not considered in the overall project costing, as this service will be developed and provided by specific service providers on the user charge basis; Infrastructure component such as water supply, waste water, roads etc. have been assessed and classified into broad sub-components for costing; and For other infrastructure cost estimates related assumptions refer to Annexure Water supply infrastructure Water supply infrastructure has been broadly divided into two sub-components for costing purpose. These two sub-components are water sourcing and water distribution. Cost of water treatment and WTP has not been considered in the overall cost estimates as it is assumed that treated water will be supplied to the Industrial Township from relevant sources discussed in the previous chapter. Based on the phasing of the land, the cost estimates have been worked out for these sub-components. As shown in Table 9-1, total cost of the water supply infrastructure is about Rs. 18 crore and maximum outlay is required for the first phase Waste water infrastructure Total cost of waste water infrastructure is about Rs crore, as shown in Table 9-2. The cost of the recycling infrastructure is also undertaken and it is about Rs. 6.5 crore including the cost of pumping equipment Storm water drainage infrastructure Cost of storm water drains along the proposed roads is about Rs crore, as shown in Table 9-2. The maximum capital investment required under this component is taken in phase 1, which is about 60 percent of the total cost Power infrastructure Cost of power infrastructure within the proposed Industrial Township is about Rs crore, as shown in Table 9-3. The maximum capital investment required under this component is taken in phase 1 &2 of the project Road infrastructure Road infrastructure is divided into four broad sub-components and it also includes the street lighting infrastructure. As shown in Table 9-4, total amount of Rs crore is required for developing the overall road infrastructure of the industrial township. In terms of break-up of the cost, road construction alone requires about 90 percent of this investment, spread over three phases. In the first phase of 138

140 development, about Rs crore of capital investment is required in road infrastructure, which also includes development of key roundabouts, street lighting, and primarily the arterial roads of 60m, 40m and 30m ROW. All the major road infrastructure investment is envisaged to be done in the first two phases of the development of the industrial township. Table 9-1: Water supply infrastructure cost Amount S.No. Component Unit Unit Rate Quantity (Rs. Cr) 1 Water Supply Infrastructure A a b c d e B a b c d e f Cost Phasing (Rs. Cr) I II III Water Source and Pumping Arrangement Pumping main from source to master storage reservoir Km 6,000, Civil work for Pump house to pump water from source of water Nos. 3,000, Pumping system, E/M including DG sets MLD 1,200, Master storage reservoir for the capacity of one day (24 hrs storage) MLD 1,000, Pumping sub mains from master storage reservoir to sector level service storage Km 5,000, reservoir/over head storage tank. Water Supply Distribution Transmission lines from GSR tank to OHT tank at sector level. km 4,000, Water storage tanks GSRs 3 Nos. at sector level for the storage capacity of8 hours. MLD 900, Water storage over head tanks (OHT) 4 Nos., at sector level for the storage capacity of 6 hours. MLD 1,400, Pump house civil work at sector level Water Works Nos. 1,000, Pumping system, E/M including DG sets MLD 1,200, Providing and laying distribution Network, diameter ranging from 100 to 300 mm, DI pipes. km 3,000, Sub-total

141 Table 9-2: Waste water & storm water infrastructure cost Amount S.No Component Unit Unit Rate Quantity (Rs. Cr) 2 Sewerage and Recycling Infrastructure Cost Phasing (Rs. Cr) I II III A Sewerage Collection and Treatment a Sewerage Collection Network main trunk sewers from sector level to STP, RCC pipes. Km 6,500, b Sewerage Collection Network sector level, RCC pipes. Km 5,000, c Sewage Treatment Plant (STP) based on Sequencing Batch Reactor(SBR) technology with tertiary treatment MLD 20,000, B Recycling Infrastructure Recycling network for irrigation of green belts, a parks and gardens Km 2,000, b Civil work for Pump house to pump water in to OHT or in recycling water network Nos. 2,500, c Pumping for Recycling including electrical and mechanical works MLD 1,200, Sub-total Storm Water Drainage Infrastructure A Road side Drainage network including manholes and road RM gully Total

142 Table 9-3: Power supply infrastructure cost S. No. Component Unit Unit Rate Quantity 4 Power Infrastructure Amount (Rs. Cr) Cost Phasing (Rs. Cr) I II III A 220kV Network KV Transmission System: Double e Circuit 220Kv Transmission line from Greater Noida km 10,000, Project Authority Substation a to Project site 220Kv Switchyard. 220KV System: 220Kv Switchyard & 2x150MVA Power Transformers,Incoming and outgoing feeders, Control and Protection Panels, Misc b Auxiliary Systems/equipments, control room building etc. Set 334,000, B 66kV Network Main 66KV Switch yard, HT/LT Switchboards, 3x31.5MVA Transformers Set ,000,000 a including internal cabling work and 4 nos. 66kV outgoing feeders. 66kV underground cabling b (66kV, 1C, 500mm.sq) km 3,000, C 11KV Network Compact Substations, RMUs,HT /LT Switchboards, Distribution Transformers Underground cabling 11kV/0.415kV, 4x1.5MVA a Package Sub-Stations Set 10,000,000 11kV/0.415kV, 3x1.5MVA b D Package Sub-Stations Set 8,000,000 HV Cables & Accessories kV Cable (3C x 400mm.sq),including accessories km 2,000,

143 E Distribution Network Cost of feeder pillars, cabling from feeder pillars to small units, Set 200,000,000 L.S cabling from RMUs to Medium Consumers etc F Street Lighting a Street lighting feeder pillars Set 75, Street Lighting poles (11mtr, 9mtr, 8mtr ht.) and 35, b light fixture No. Mast Lighting for open and parking areas,with 20m high mastss each with 100, c 12*750w HPSV Lamps Set d Street Lighting Cabling km 150, G Procurement charges, transportation, erection testing and commissioning charges, Departmental Charges (10%) L.S Sub-total

144 Table 9-4: Road infrastructure cost S.No. Component Unit Unit Rate Quantity 5 Transportation Infrastructure A Roads Infrastructure Amount (Rs. Cr) Cost Phasing (Rs. Cr) I II III a 60 m wide Road Km 200,000, b 40 m Wide Road Km 120,000, c 30 m Wide Road Km 80,000, d 24 m Wide Road Km 80,000, e BRT Infrastructure (external connectivity) Km 200,000, f Road Side Footpath Km 6,000, g Cycle Track Km 7,500, h Road Side Plantation sq.m , Underground Common Utility Infrastructure M 30 Concrete cum 5,836 30, Excavation cum , Formwork sqm , Reinforcement ton 68,475 3, Site Level Landscape A Site Level Landscape sq.m. 4, , TOTAL The overall IT & Broadband infrastructure cost of the project site is estimated to be Rs.1.3 crore (refer Table 9-5). Table 9-5: IT & Broadband infrastructure cost S.No. Component Unit Unit Rate Quantity 8 IT & Broadband Infrastructure Amount (Rs. Cr) Cost Phasing (Rs. Cr) I II III 4 X 100mm Ducts km 1, TOTAL

145 9.2 Summary of Cost Estimate Table 9-6 provides the summary of the cost estimates. Broad cost estimates of the physical infrastructure components are about Rs crore. Additional cost in terms of five percent contingencies and three percent detail design cost & quality control & project monitoring cost is also considered to arrive at a realistic cost of about Rs crore. These additional costs reflect the cost of detailed project report preparation, project monitoring and management during implementation, environmental monitoring and other administrative costs. The cost of the physical infrastructure in the initial phase 1 & 2 of the development is about Rs crore (including contingencies). As evident from the table, maximum capital investment is required in first four phases when most of the internal infrastructure will be required. Per acre development cost of the industrial township comes to about Rs crore/acre. S.No. Table 9-6: Broad cost estimates - summary Cost Phasing Component (Rs. Cr) Phase 1&2 Phase 3&4 Phase 5&6 Total 1 Water Supply Infrastructure Sewerage and Recycling 2 Infrastructure Strom Water Drainage Infrastructure Power Infrastructure Transportation Infrastructure Underground Common 6 Utility Infrastructure Site Level Landscape IT & Broadband 8 Infrastructure Sub-total Contingencies (5%) Detail Design Cost & Quality Control & Project Monitoring Cost at implementation stage (3%) TOTAL

146 10 Financial Analysis The financial analysis section covers the implementation strategy, land use phasing plan, feasibility analysis, project timelines and way forward for the project. The section is divided into four parts: Part 1: Land Use and Phasing Methodology; Part 2: Project Structure and Implementation Strategy; Part 3: Financial Feasibility and Analysis of the Project; and Part 4: Project Timelines and Way Forward 10.1 Land Use and Phasing Methodology Spread over ha of land, Integrated Industrial Township city is planned to have industrial, commercial, and residential developments. Following is the summary of planned land usage in the city. Table 10-1: Land use distribution Land use Area (Sq. m.) Area (ha) % FSI BUA (Sq.m.) Industry 1,537, % 2.5 3,458,738 Hi tech Industries 638, % 2.5 1,435,754 Bio tech Industries 414, % ,116 R &D 484, % 2.5 1,089,868 Commercial Mixed Use 190, % 4 761,765 Residential 336, % 5 1,680,848 Utilities 46, % ,468 Greens & Water Bodies 403, % Roads 471, % Existing Structures 39, % Total Area (Sq. m.) 3,024, % 5,940,818 Total Area (Acres) Acres Around 50.8% of the gross area is reserved for industrial units, 11.1% of the area is reserved for residential development, and 6.3% commercial development. Remaining 31.8% of the area is reserved for public greens, facilities, and utilities. The built-up area is calculated based on the global FSI concept, wherein the individual FSI is allocated in such a manner that the global FSI of the project, i.e. total FSI of the entire project, shall be restricted to 2.0. Please note that all the calculations and project feasibility assessment is based on the scenario of FSI 145

147 utilization that has been proposed. There may be different scenarios for FSI utilization that can have very different returns Rationale for Phasing The entire project is planned to be developed in six different phases, as detailed in the Project Structure and Implementation Strategy section. The phasing has been done in line with the forecasted demand for such industrial units. Following are the key factors considered while deciding the phasing for the industrial units: Discussions with various domestic and international companies; and Benchmarking exercise with the Singapore Science Park Key underlying assumptions are: IIT will be operational in the next 2-3 years; It will have good connectivity in terms of roadways, railways, and high speed metro; Infrastructure in terms of power supply, water supply, communication lines, roads, public transport will be of high standard; All the three sub sectors bio-tech, hi-tech and R&D will grow in parallel and attract domestic/ multinational companies; and Total commercial and residential units are phased in correlation with the phasing of industrial units 146

148 Table 10-2: Land use phasing Column1 Column Hi-Tech Industries mn. sq. ft Bio-Tech Industries mn. sq. ft R&D Industries mn. sq. ft Commercial mn. sq. ft Residential mn. sq. ft Total Hi-Tech Industries mn. sq. ft Bio-Tech Industries mn. sq. ft R&D Industries mn. sq. ft Commercial mn. sq. ft Residential mn. sq. ft Total Hi-Tech Industries mn. sq. ft Bio-Tech Industries mn. sq. ft R&D Industries mn. sq. ft Commercial mn. sq. ft Residential mn. sq. ft Total Total Hi-Tech Industries mn. sq. ft Bio-Tech Industries mn. sq. ft R&D Industries mn. sq. ft Commercial mn. sq. ft Residential mn. sq. ft Total It is expected that the industrial units will lead to significant employment generation of approximately 58,000 jobs over the next 30 years. The phase wise estimates of employment generation are listed below: Phase 1 Table 10-3: Phase wise employment generation Phase Phase Phase Phase Phase

149 10.3 Project Structure and Implementation Strategy The project is envisaged as an Integrated Industrial Township to promote new age hi-tech Industries, biotech industries, and R&D industries along with commercial and residential facilities essential to support such townships. A detailed project implementation strategy is worked out so as to successfully achieve the objective of the Integrated Industrial Township. The strategy is formulated keeping in mind the following factors: Initial support to industries so as to facilitate promotion of new age industries in the township; Ensuring that the supply of industrial units coincides with the market demand, and that there is no over-supply; Flexible approach flexible to adjust strategy based on market dynamics; and Capture unprecedented future potential Stage 1 Government of Uttar Pradesh DMIC Trust Joint Venture Company Provides for Land and Trunk Level Infrastructure Stage 2 Phase wise implementation of Project Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Figure 10-1: Project structure & implementation strategy 148

150 The project is proposed to be executed in two stages Project Implementation - Stage 1: The Government of Uttar Pradesh and the DMIC Trust will form a Joint Venture Company (JVC formed as an SPV for the project), to provide for land and trunk level infrastructure. Project Implementation - Stage 2: Invitation to Private players by the JVC to execute the project in different phases Detailed Project Implementation Strategy - Stage 1 The stage 1 of the project implementation shall involve the following key steps: The Government of Uttar Pradesh and the DMIC Trust will form a Special Purpose Vehicle JVC, to provide the land required for the township, and to build the trunk level infrastructure essential for the township. The trunk level infrastructure within the site will include water supply, waste water and recycled water, storm water, power, internal roads and Bus Rapid Transport (BRT), underground utilities, IT/telecom, and site level landscape infrastructure. o The trunk level infrastructure will also include an external Bus Rapid Transport (BRT) connectivity from the proposed Multi-modal Transport Hub at Boraki (part of DNGIR delineated site) to the proposed Industrial Township. It is envisaged that the shareholding of both the equity holders of the JVC would be 50% each. The JVC shall provide the required land and set up the basic trunk infrastructure on the site so as to make the project attractive for private sector participation. The private participant will then need to incur only the capital cost required for the proposed project facilities. This will enhance the marketability of the project in turn encouraging private participation in the project.. The role of JVC shall be critical for the successful execution of the project as it will help in co-ordination with various other government agencies. Key action task at this stage shall be that offsetting up of trunk level infrastructure. A consultant would be appointed by the JVC for carrying out preliminary design and tender document preparation for selection of a Design-Build (DB) contractor and to provide technical assistance during the handholding period consisting of detailed design work, which will be taken up by the selected DB-contractor. Various development modes to carry out the development of trunk level infrastructure were analyzed and are discussed below: PPP framework; EPC contract; and Design Build contract PPP framework and EPC contract were ruled out on account of following factors: PPP framework: PPP framework was ruled out as there were no direct revenues associated with the usage of trunk level infrastructure. Besides, there is a significant cost associated with the setting up initial trunk level infrastructure, and loading such costs on the private sector developer (to be invited in Stage 2) would have affect the financial viability for those developers. 149

151 EPC contract: EPC contract was avoided as the mode does not bring in technological innovations and the scope may go through significant variation in future. Design Build (DB) contract: DB method appears a preferred mode of execution on account of the following benefits: o o o o o o It is possible to bring in technological innovation and advancements; It has been observed that the DB approach has led to significant time savings in execution of similar projects in India. The mode saves time on account of overlapping periods of design and construction processes, harnessing synergy between the constructor s design and construction team; Cost effectiveness: The mode helps the contractor to better assess the risks of the project and thereby equips the contractor to mitigate such risks in advance, leading to cost effectiveness. Besides, the contractor can also negotiate for the prices of critical construction material well in advance, leading to further cost savings; The mode facilitates better co-ordination between the owner and the contractor owing to single window communication; This approach helps transfer of risks of engineering designs on the contractor; In India, various organizations are increasingly following the DB approach for their projects. Such agencies include Delhi Metro, etc. A brief matrix of risk sharing between public/ private for a Design Build contract is as below: Table 10-4: Risk matrix for Design-Build contract Responsibility Public/ Private Own Conceive Design Build Operations and Maintenance Financial Responsibility Public Public Private Private Public Public 10.5 Detailed Project Implementation Strategy: Stage 2 The project implementation stage 2 is planned to be executed into six different phases. The phase 1 is projected to be for five years, i.e. FY 2016 to FY 2020, and the phase 2,3,4,5 and 6 will be of five years each, starting from FY Phase 1: The JVC will invite a private sector player on PPP basis to create signature buildings for Hi- Tech, Bio-tech, R&D sector and an Incubation Center through a transparent bid process. A transaction advisor shall be appointed by JVC to execute this process. The concession will be awarded for a period of 90 years; 150

152 The private developer shall further develop the buildings and lease the industry space to the end users. A mechanism will be derived to share these rentals between JVC and the private developer; In addition, JVC may give right to develop commercial and residential space after the development of industrial space, to the developer to enhance the developer s financial feasibility; and The private developer shall also transfer some built-up space to JVC that shall be used as an Incubation Center to promote innovative start-ups and to help create an industrial eco-system. In addition, JVC may also use this space either for its self-use or lease the space to the end-users. The detailed bidding parameters and transaction structure shall be finalized at the bid stage by the selected Transaction Advisor. The Transaction Advisor shall be responsible for project structuring including bundling/un-bundling and bid process management such as preparation of bidding documents including concession agreement, handling pre-bid conferences, bid evaluation and selection of bidders. The relevance of this phase shall be to trigger the development of township and to create signature buildings to act as a symbol of new age industrial infrastructure in the area. The successful implementation of this phase will act as a primer to attract industries to the Township and also facilitate the demand augmentation for subsequent phases. Phase 2, 3, 4, 5, and 6: It is proposed that the JVC shall carry out land monetization in phase 2 to phase 6, wherein the JVC shall monetize the available unutilized development potential to recover its cost of land and trunk level infrastructure. The strategy will help JVC to gauge market sentiments that shall help JVC to strategize the land monetization based on the market forces. In addition, JVC will also be able to evaluate the performance of PPP process in phase 1 and may carry out the execution in the next phases through Public Private Partnership approach. Further, it is proposed to have multiple private developers with requisite capabilities for carrying out the development on account of the following factors: Capacity Constraints: The nature and size of the project is such that it requires the expertise of multiple private players. A single developer may not have the required expertise and may not be able to fund the required capital for this project. Diversification: Having multiple developers shall also reduce the risks of failure of the project on account of failure of any single developer. Various possible bidding parameters for land monetization were considered. They are Upfront Premium, Maximum Fixed Lease Rental, and Revenue Share. Each bidding parameter was evaluated viz-a-viz the project objectives.. Revenue Share results in cash flows spread over the life time of the project; however, the nature of the project is such that there is a possibility of under-reporting of revenues. In addition, developer s commitment and exit barriers in such an arrangement are low. Maximum Fixed Lease Rental allows the JVC to capture regular cash flows over a period of time. However, it fails to capture the future upside potential for JVC. In addition, there is a relatively lower commitment on the part of developer as it can exit in-between the project. 151

153 Key risk ascertained in both these bidding parameters was relative lack of commitment on part of the developer. Any interim exit on part of the developer may significantly impact the execution of the entire project. Hence, up-front premium method is proposed as a bidding parameter for land monetization process. Upfront premium though affects the marketability of the project as it requires significant cash flows from the developers in the beginning; the provision of having smaller project components with multiple developers shall mitigate the risk. Besides, the payment terms for the land monetization proceeds may be relaxed to make it more private sector participation friendly. It is proposed that land monetization proceeds be collected from the developers in three tranches spread over three years: 30.0% in the first year, 30.0% in the second year, and the balance 40.0% in the final year Project Feasibility The project feasibility has been evaluated from the perspective of: Joint Venture Company The Private Developer involved in phase 1 development For the purposes of evaluation, the following scenarios have been considered: Phase 1 The private developer selected shall develop industrial space to the tune of 3.7 million sq. ft. Private developer shall quote a fixed rental to be retained, as a bidding parameter. Any rental over and above this fixed rental shall be shared equally between the JVC and private developer. The developer quoting the minimum lease rental shall be selected. The minimum achievable fixed rental considered for the purpose of evaluation is Rs. 25 per sq. ft. per month in the base year. This is in line with the prevailing market trends. The private developer shall be given rights to develop and market residential and commercial development potential worth 3.0 million sq. ft. and 1.0 million sq. ft. respectively. JVC shall sub-lease the 0.2 million sq. ft. transferred to it. For the purpose of evaluation it has been considered to be leased at a rate of Rs. 25 per sq. ft. per month. Phase 2 to Phase 6 Land Monetization approach has been considered for the phase 2 to phase 6 for the JVC Project Feasibility Analysis: Joint Venture Company The role of Joint Venture Company shall include Providing land and trunk level infrastructure Receiving rentals from the office space transferred to JVC in phase 1 Additional rental received on the leasing of industrial units in phase 1 Land monetization activities from phase 2 to phase 6 152

154 A financial feasibility assessment was carried out for JVC considering the cash flows from all these activities. Capital Expenditure Based on the broad brush cost estimates, the total investment is estimated at Rs.1,714.6 crore. The JVC shall provide the costs of land and trunk level infrastructure. The details of expenditure are as follows: Table 10-5: Capital expenditure Particulars Amount (Rs. crore) Description Land Ha (3,024,921sq. m.) of land for the proposed Integrated Industrial Township, considered at Rs. 2, per sq m. Trunk Level Infrastructure 1,097.5 Including water, sewerage, recycle water, storm water drainage, power and road infrastructure, underground utilities, site level landscape and IT/telecom infrastructure. Water and Sewerage ) Water source and pumping arrangement Rs crore 2) Water supply and distribution Rs crore 3) Sewerage collection and Treatment Plant Rs crore Recycle water Infrastructure 9.4 Recycle water network for irrigation of green belts and nonpotable uses including electrical and mechanical works Power Infrastructure ) 220 KV network - Rs crore 2) 66 KV system - Rs crore 3) 11 KV network - Rs crore 4) HV Cables and accessories - Rs crore 5) Distribution network - Rs crore 6) Street Light - Rs crore 7) Procurement and other charges Rs crore Other Trunk Level Infrastructure Total 1, ) Road infrastructure - Rs crore 2) BRT Infrastructure - Rs crore 3) Road side infrastructure - Rs crore 4) Underground utilities - Rs crore 5) Site Level Landscape - Rs crore 6) IT/telecom infrastructure - Rs. 1.9 crore 7) Storm water drainage - Rs crore The Trunk Level Infrastructure costs are inclusive of 5.0% p.a., 5.0%, and detail design cost, quality control & project monitoring cost at implementation 3.0%. The total capital expenditure for land and trunk level infrastructure is Rs.1,714.7 crore out of which Rs 1,180.8 crore will be incurred during the period ( to ) and the balance capital expenditure of Rs crore for land and trunk infrastructure will be incurred from to and The trunk level infrastructure has been phased out to match the development of Integrated Industrial Township. The last two phases of trunk level infrastructure will be implemented by appointing separate DB contractor. 153

155 Detailed assumptions for each capital expenditure items and estimates of un-inflated capital expenditure for each of the capital expenditure items are given as follows: Table 10-6: Capital expenditure assumptions & estimates Water source and pumping arrangement Particulars Units Price Capex (Rs/ unit) Rs Cr. Pumping main from source to master storage reservoir Km 3.0 6,480, Civil work for Pump house to pump water from source of Nos 1.0 3,240, water Pumping system,e/m including DG sets MLD ,296, Master storage reservoir for the capacity of one day (24 MLD ,080, hrs storage) Pumping sub mains from master storage reservoir to sector level servise storage reservoir/over head storage tank. Km 5.0 5,400, Water Supply Distribution Particulars Units Price Capex (Rs/ unit) Rs Cr. Transmission lines from GSR tank to OHT tank at km 1.0 4,320, sector level. Water storage tanks GSRs 3 Nos at sector level for the MLD , storage capacity of of 8 hours. Water storage over head tanks (OHT) 4 Nos, at sector MLD 3.9 1,512, level for the storage capacity of 6 hours. Pump house civil work at sector level Water Works Nos 4.0 1,080, Pumping system,e/m including DG sets MLD 4.0 1,296, Providing and laying distribution Network, diameter ranging from 100 to 300 mm, DI pipes. km ,240, Sewerage Collection and Treatment Particulars Units Price Capex (Rs/ unit) Rs Cr. Sewerage Collection Network main trunk sewers from Km 5.0 7,020, sector level to STP, RCC pipes. Sewerage Collection Network sector level, RCC pipes. Km ,400, Sewage Treatment Plant (STP) based on Sequecing Batch Reactor(SBR) technology with tertiary treatment MLD ,600, Recycling Infrastructure Particulars Units Price Capex (Rs/ unit) Rs Cr. Recycling network for irrigation of green belts, parks and Km ,160, gardens Civil work for Pump house to pump water in to OHT or in Nos 1.0 2,700, recycling water network Pumping for Recycling including electrical and mechanical works MLD 9.0 1,296, Power - 220KV Particulars Units Price Capex (Rs/ unit) Rs Cr. 220KV Transmission System: Double e Circuit 220Kv Transmission line from Greator Noida Project Authority Substation to Project site 220Kv Switchyard. KM ,800, KV System: 220Kv Switchyard & 2x150MVA Power Transformers,Incoming and outgoing feeders,control and Protection Panels,Misc Auxiliary Systems/equipments,control room buiding etc. Set ,720,

156 Power - 66KV Particulars Units Price Capex (Rs/ unit) Rs Cr. Remaining Power # 1.0 1,329,736, Main 66KV Switch yard, HT/LT Switchboards, sqm ,200, x31.5MVA Transformers including internal cabling work and 4 nos. 66kV outgoing feeders. 66kV underground cabling (66kV, 1C, 500mm.sq) km ,240, Transportation Expert, BRT, IT, Storm water drainage, and underground common facility Particulars Units Price Capex (Rs/ unit) Rs Cr. 60 m wide Road Km ,000, m Wide Road Km ,600, m Wide Road Km ,400, m Wide Road Km ,400, BRT Infrastructure (External Connectivity) KM ,000, Road Side Footpath and cycle track footpath Km ,805, Raod Side Plantation sq.m. 100, Underground Common Utility Infrastructure ton ,673, IT Broadband Km 12, , Storm Water Drainage RM 25, , Site level Landscape Particulars Units Price Capex (Rs/ unit) Rs Cr. Site level landscape sq.m. 403, , Funding The project costs shall be funded by the State Government and DMICDC as equity contribution for the project. Each entity shall contribute Rs crore as equity, and the balance requirement of trunk level infrastructure of Rs crore in the remaining phases shall be funded by internal cash flows generated. The following table details the yearly funding schedule of the JVC Particulars Column1 Table 10-7: Yearly funding schedule Total Total Funding Required Rs. Cr ,714.7 State Equity Funding Rs. Cr DMIC Equity Funding Rs. Cr Internal Cash Flows Rs. Cr Total Funding Rs. Cr ,714.7 * DMIC Equity Funding has been proposed as matching contribution as State equity. In the funding table it has been shown in phases, however it is expected to be contributed upfront. Revenues and Operational Expenditure The following are the proposed sources of revenues for the Joint Venture Company: Rentals from the building transferred to JVC in phase1; Additional Rentals, if any from the industrial buildings in phase 1; and 155

157 Land Monetization proceeds Table 10-8: Revenue sources Particulars Amount (Rs. Crore) Rentals Land Monetization 6,592.4 Total Revenues 7,155.9 The above number is a conservative estimate, and does not include the following: Additional revenues from rental sharing by phase 1 PPP operator; and Future upsides in land monetization are expected to be higher on account of proposed infrastructure developments Rentals from building transferred to JVC in Phase 1 The private developer shall transfer industrial space equivalent to 0.2 million sq. ft. to JVC. JVC shall be able to earn lease rentals by leasing this industrial space. For the purpose of our evaluation a rental rate of Rs 25 per sq. ft. month is assumed as base rate (in line with market trends), to be 5.0% per annum. In addition, two step-ups of 10.0% increase are considered in and to account for the revaluation associated with advanced stage of development of the project. The occupancy rates assumed are as follows: First year 80.0% Second year 85.0% Third Year 90.0% Fourth Year onwards 98.0% Addition Rentals from Industrial building in Phase 1 Additional Rentals are conservatively kept as nil in this scenario, i.e. it is assumed that there would be no additional rentals from the Industrial buildings over and above the quoted fixed rental by the private developer. Land Monetization The Joint Venture Company shall start land monetization activities starting from phase 2 to phase 6. The achievable rates considered for land monetization activities are Rs 550 psf of development (FSI). Annual escalation is 5.0% p.a. The FSI sale rate is considered based on the market understanding of recent transactions taking place in the vicinity. Operational Expenditure Key operational expenditure for JVC is infrastructure maintenance expenses. Annual operational expense is considered as 2.5% of total costs of the assets (as per industry benchmarks). Total expenditure for infrastructure maintenance is estimated as Rs crore over the next 30 years. Though some component of this annual expenditure may be recoverable from future users of the facilities, for the purpose of this evaluation a zero recovery is assumed. 156

158 Feasibility Analysis Based on the assessment, the project is found to be technically implementable and financially viable. The returns from the project from the viewpoint of the JVC have been summarized in the following table: Table 10-9: Project Returns Particulars Column1 Equity IRR (%) 8.3% Equity NPV (Rs 12% Payback Period 16.8 In addition to the financial viability, the project was also evaluated from economic point of view. The manufacturing hub is bound to generate series of un-quantified economic benefits as direct benefits and through a multiplier effect. Such a large scale worker-oriented facility will generate significant employment requiring staff for manufacturing and other operations. Further the direct employment would create a multiplier effect through each industry including backward and forward linkages with other sectors of the economy. These economic activities will in turn benefit the government in form of various direct and indirect taxes. In addition, it would also help improve the industrial output of the country. Besides, the facility will be transferred to government at the end of the concession period, where the facility will act as cash cow and result in significant cash inflows for the JVC. The flagship industrial township planned to promote first of its kind vertical manufacturing and stack-up factory setup through innovative technological advancements will attract foreign investors for setting up their manufacturing plants in the region. The increased foreign investments will have a ripple effect on the overall economy of the region Project Feasibility Analysis: Private Developer Phase 1 The role of private developer in phase 1 shall include Building of signature buildings for new age industries; Building of industrial space to be transferred to JVC; Development and Marketing of industrial space to the desired industries; and Building of commercial/ residential space, provided to enhance the returns Capital Expenditure The capital costs are estimated based on broad cost basis. These costs represent the capital expenditure on the part of private developers, and are exclusive of the costs for Land and Trunk level infrastructure. Expenditure on building infrastructure represents estimated expenditure on construction costs. The estimates for capital expenditure are as under: 157

159 Table 10-10: Capital expenditure estimates Particulars Amount Rs Cr. Hi tech Bio tech R&D Commercial Residential Total 2,167.8 The total capital expenditure for the project is estimated to be Rs 2,167.8 crore to be incurred by multiple developers. The construction costs considered for the capital expenditure are as follows: Table 10-11: Construction cost assumptions Particulars Amount Rs psf Hi tech buildings 2,800.0 Bio tech buildings 2,800.0 R&D buildings 2,800.0 Commercial buildings 2,200.0 Residential buildings 1,800.0 The assumptions for construction costs for commercial buildings and residential buildings are considered in line with the prevailing market dynamics. However, there are no ready benchmarks available in India for construction of New Age Industrial buildings. Based on a broad brush analysis of incremental costs associated with differential specifications, we have considered a reserve of Rs 600 psf over and above the cost of construction of commercial buildings for the construction of industrial buildings. Various factors that can result in additional costs for industries over and above the construction costs of commercial buildings are as follows: R&D and Bio-tech service industrial units other than general office space and production/ assembly plant area has requirements of specialized modular laboratory units and technology incubation centers equipped with facilities related to training, testing and manufacturing activities, business support facilities, analytical equipment and state-of-the-art infrastructure for safety, security and housekeeping provisions with all the other basic facilities of telecom network, reliable power, water supply and sewerage treatment. These industrial building are thus designed to accommodate the rigorous demands of the life science and biomedical industries with the highest quality and capacity mechanical, electrical & structural systems and may be equipped with numerous energy efficient features for sustainable industrial building design. These A-grade industrial units are likely to have 25-30% higher construction cost than a typical industrial building design owing to specialized flooring, mechanical-electrical and plumbing (MEP) and HVAC requirements for biotech and R&D labs. Higher cost of building construction may be considered due to special design considerations for fume hoods, clean rooms, sensitive electronic equipment storage rooms, constant temperature and humidity chambers along with utility provisions including heat recovery in lab exhaust, humidity sensors for monitoring and control for all lab areas, compressed air/ nitrogen/vacuum/ionized water requirements, innovative condenser 158

160 Funding water treatment system, fire detection & suppression system, fire lifts, pressurized staircases and emergency power back up required for these industry types. The multi-storey stack-up industrial complexes are likely to have higher structural loading requirements due to equipment loads in case of hi-tech industries. The industrial buildings are designed with higher structural load requirements for column free, large span structures with higher head room - minimum 8 m clear height in production area for vehicle hoist machine or equivalent as per Planning & Design Parameters for Multi-storey stack-up Industrial Complex, Housing & Development Board Singapore. Other operational requirements may also include ramps for direct vehicular access on upper floors, high capacity fire lifts for goods movement to upper floors etc adding to higher cost of construction. Higher construction costs are also considered owing to structural requirements due to vertical nature of industries and also due to uncertainty of industry and manufacturing type at prefeasibility stage of the project. Leverage ratio is considered as 70.0%, i.e. 70.0% of the total capital expenditure is funded by debt and remaining by equity. Integrated Industrial city is planned to incorporate commercial, residential, and industrial developments. Each of these components has a different cash flow pattern on account of its market dynamics; therefore, we have first utilized the cash inflows from the project to pay for the capital expenditure. Thus, capital expenditure is first funded by cash inflows from the project, and then funded by debt and equity in the defined leverage ratio. Post the optimal utilization of the city, the free cash flows are first utilized to repay debt and are then distributed to the equity shareholders. The following table details the expenditure incurred on part of the private developers. Table 10-12: Project funding Particulars Amount Rs Cr. Capex -2,167.8 Funding for interest on debt Less: Accruals from resi sale Less: Accruals from rentals Funding Required -1,680.9 Debt 1,176.6 Equity Total Funding 1,

161 The table below specifies the yearly funding schedule of the capital expenditure: Table 10-13: Yearly funding schedule Particulars Total Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Capex ,167.8 Funding for interest on debt Less: Accruals from resi sale Less: Accruals from rentals Funding Required ,680.9 Debt ,176.6 Equity Total Funding ,680.9 Revenues and Operational Expenditures Revenues are considered from the following three sources: Rental Income Industries Rental Income Commercial Residential sale The following table summarizes the total proceeds from these sources of revenues over the project life. Particulars Table 10-14: Sources of revenue Amount (Rs. crore) Industrial Rental 9,924.2 Commercial Rental 4,143.9 Residential Sale 1,239.3 Total 15,307.4 In addition, there may be minimal revenues from parking charges, common area maintenance margins, and advertising rights. However, these revenues are not considered for the purpose of financial analysis. The following section highlights the key assumptions considered for calculating revenues under each of these segments. Rental Income Industrial Units A total of 3.5 million sq. ft. of built-up area is proposed to be built during the first phase of the project. The private developer shall commence the construction from FY 2016 and shall be able to complete the construction by FY

162 The base rental rates assumed for the industrial component is Rs 25 per sq. ft. per month, escalated at 5.0% per annum. In addition, we have considered two step-up increases of 10.0% in and Any rental over and above the base rental shall be shared between the JVC and private developer equally. The occupancy rates assumed are as follows: o First year 80.0% o Second year 85.0% o Third Year 90.0% o Fourth Year 98.0% Rental Income Commercial Units A total of 1.0 million sq. ft. of built-up area is proposed to be built during the first phase of the project. The private developer shall commence the construction from FY 2018 and shall be able to complete the construction by FY The base rental rates assumed for the commercial component is Rs 35 per sq. ft. per month, escalated at 5.0% per annum. In addition, we have considered step-up increases of 10.0% at an interval of 5 years, starting from The occupancy rates assumed are as follows: o First year 75.0% o Second year 80.0% o Third Year 85.0% o Fourth Year 90.0% Sale of Residential Units A total of 3.0 million sq. ft. of built-up area is proposed to be built during the first phase of the project. The private developer shall commence the construction from FY 2018 and shall be able to complete the construction by FY The base sale values assumed for the residential component is Rs 3,250 per sq. ft., escalated at 5.0% per annum. In addition, we have considered step-up increases of 10.0% at an interval of 5 years, starting from There is no operational expenditure considered for the private developer. The key operational expenditure for private developer is common area maintenance, which will funded by common area maintenance charges collected from the users. Returns Feasibility of the project is ascertained by calculating IRR (Internal Rate of Return) at both the project and equity level. The calculation of these returns accounts for all the above mentioned costs and revenues. The following table summarizes the result of the preliminary assessment. 161

163 Table 10-15: Project returns Particulars Column1 Project IRR (%) 15.0% Project NPV (Rs 12% Equity IRR (%) 17.3% Equity NPV (Rs 12% Equity return of the project is estimated to be 17.3%, which shall be sufficient to draw private sector participation. We understand that equity IRR of 17.3% is not very attractive for private participation in such kind of projects. However, we feel that the private players will be attracted towards the project considering the magnitude of returns in nominal terms, i.e. an NPV of Rs crore, and the potential to capture part of the upside gains from the project. Sensitivities Sensitivities to return are considered on the following parameters: Capital Expenditure Table 10-16: Capital expenditure Particulars Column1 Base - 10% in + 10% in Returns Capex Capex Project IRR 15.0% 16.2% 14.0% Equity IRR 17.3% 19.1% 15.9% Revenues Table 10-17: Revenues Particulars Column1 Returns + 5% in - 5% in Revenues Revenues Project IRR 15.0% 15.3% 14.7% Equity IRR 17.3% 17.7% 16.9% 20% low rates in industrial rent Table 10-18: Industrial rents Particulars Column1 Base - 20% in Returns Ind. Rent Project IRR 15.0% 13.9% Equity IRR 17.3% 15.7% 162

164 Project Size An indicative overall project size figure is estimated based on the suggested phasing pattern of the developments (as per phase 1 to phase 6), and their inflated construction costs. The table below suggests the phasing pattern for the developments (industrial, commercial, and residential units) Table 10-19: Development Phasing Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Total Hi-Tech Industries mn sq. ft Bio-Tech Industries mn sq. ft R&D Industries mn sq. ft Commercial mn sq. ft Residential mn sq. ft Total Construction costs in the base year are considered as: Industrial Rs 2,800 psf Commercial Rs 2,200 psf Residential Rs 1,800 psf The construction costs considered are as per market understanding. The inflation rate considered is 5.0% p.a. Table 10-20: Project investment Particulars Amount Rs Cr. Hi-Tech 9,417.4 Bio-Tech 6,120.2 R&D 7,148.7 Commercial 3,734.0 Residential 6,611.1 Total 33,031.4 Thus, an investment by JVC in terms of land and trunk level infrastructure worth Rs 1,714.6 crore is expected to generate a private sector investment of over Rs 33,031.4 crore in a 30 years timeframe. 163

165 10.7 Project Implementation Timelines and Way Forward Project Implementation Timelines Table 10-21: Project implementation timelines Implementation of Initial Trunk Level Infrastructure and Development through Land Monetization SI. No. Particulars Formation of SPV 1 Required Approvals from various authorities Transfer of Land Appointment of bidder for 2 Trunk Level Infrastructure on DB basis 3 Construction of Trunk Level Infrastructure 4 Appointment of Private Concessionaires Construction Schedule 5 Industrial Commercial/ Residential Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Implementation of remaining Trunk Level Infrastructure and Development through Land Monetization S. No. Particulars 1 Trunk Level Infrastructure Construction Schedule 2 Industries Comm ercial/ Residential S. No. Particulars 1 Trunk Level Infrastructure Construction Schedule 2 Industries Commercial/ Residential Phase 2 Phase Phase 4 Phase 5 Phase Way Forward For the estimated costs of the project at JVC level of Rs 1,714.7 crore, equity contribution from DMICDC Trust for Rs crore; For investment approval of Rs crore in equity for implementation of trunk level infrastructure; Formation of Joint Venture Company (as an SPV) with 50% equity contribution from Government of Uttar Pradesh and 50% equity contribution from the DMICDC Trust; Transfer of the proposed land to the Joint Venture Company; For bidding out the project for trunk level infrastructure by JVC on Design Build basis by appointing a design build contractor by JVC; 164

166 For approval for appointing a consultant for carrying out the preliminary design of the trunk level infrastructure Bidding out the phase 1 of the project on PPP basis: o o o o o o o o o o o For engagement of Transaction Advisor Finalization of the risk matrix, with a bifurcation of the risks to be borne by the private developer and the Authority, and mitigation measures; Preparation of the RFP - volume I (Instruction to Bidders), RFP volume II (Concession Agreement) and Volume III (Project Information Memorandum); Approval from the PPP cell of the State Government; Issuance of the tender notice; Pre-bid meeting and preparation of replies to the pre-bid queries; Receipt and opening of the bids from bidders; Assessment of the technical and financial bids, preparation of the bid assessment report for the Authority; Issuance of the LOI/LOA to the selected bidder; Assistance to the Authority in negotiation with the selected bidder; and Assistance to the Authority in signing of the concession agreement with selected bidder Monitoring the market dynamics and bidding out phase 2 to phase 6 of the project on Land Monetization model. For appointment of Transaction Advisor for phase 2 to phase 6 of the project. 165

167 II. Annexure 1- Approach for Market Assessment Methodology for DNGIR (Integrated Industrial Township) Industry Mix Selection of Top Industries Revenue Estimation Employment and Land forecast Top industries were selected considering the strengths of DNGIR and the impact of DMICDC in terms of global infrastructure and ease of doing business Dynamics of Indian and global manufacturing was also analyzed Past growth and future growth potential of the industries were analyzed on the basis of industry data and interaction with government stakeholders, domestic and international companies Current industry figures were analyzed and future growth forecast was used to arrive at the final figures for India. Contribution of UP was calculated based on the industry assumptions (contribution of industrial output of UP to India). Contribution of Industry in the industrial township was calculated based on the assumption of number of similar parks that would come up in UP till The projected revenues for each industry and average revenue per employee were used to arrive at employment potential for the industry under consideration The employment potential for each sector and employment per hectare were used to arrive at the land allocation to a particular industry companies 166

168 An extensive analysis of dynamics of Indian manufacturing, prominent industrial clusters across India and the world was undertaken to identify industries which can act as growth engine for an economy. To arrive at this industry / activity mix, industry specific historical, existing and forecasted growth trends were analyzed. Production and consumption patterns of different industries along with the requirements for capital, labor and technology among others were extensively studied. A similar analysis taking into account the suitability of these industries for locating in DNGIR (the Integrated Industrial Township) along with the existing, historical and projected future growth as well as investment trends was undertaken. Sector specific production clusters in Uttar Pradesh and India were analyzed to understand the present capacity for each sector keeping in mind the expected growth in demand and supply in each sector. The thrust sectors which were given special incentives by the Central Government were taken into account during the analysis. The enabling and restraining factors were taken into account to identify the industries that hold potential for the state of Uttar Pradesh. The existing industrial base of Uttar Pradesh was studied along with the industrial base in the surrounding regions to explore the potential for development of feeder industries. In sync with the industrial mix for Uttar Pradesh, an economic activity mix for the DNGIR (Hi-tech Industrial Township) was developed. Proximity to markets as well as sources of raw material was taken into account while suggesting the economic activity mix. The potential of DNGIR (the Integrated Industrial Township) in attracting a significant share of investments and existing industrial base in the region formed the base for suggesting the industry / activity mix. Inputs gathered through primary discussions with key stakeholders served as a key input for identification of activity mix. Proximity to existing clusters and potential for development of feeder industries in the DNGIR (the Integrated Industrial Township) was considered while evolving the economic activity mix at the DNGIR (the Integrated Industrial Township). Moreover, likely increase in productivity of workforce, increased use of automation was taken into account to arrive at the workforce requirements. Synovate industry experts from multiple offices across geographies played a key role in arriving at the suggested economic activity mix. In addition, secondary data sourced from Uttar Pradesh and Central Govt. and from other sources like internal databases and desk research was carefully analyzed to draw suitable inferences about the potential of growth of existing industries in Uttar Pradesh and the DNGIR (the Integrated Industrial Township). In addition, scenarios where an industry is currently not present in Uttar Pradesh like semiconductor fabrication was taken into account while making the necessary land and labor projections. The excellent infrastructure facilities coupled with availability of highly trained manpower are expected to attract these new age industries to set up base in DNGIR (the Integrated Industrial Township). These new age industries are expected to be the engines of growth for developing technology intensive industries in the state of Uttar Pradesh. 167

169 Selection Criteria Industries for DNGIR Methodology Top industries were selected considering the strengths of DNGIR (Integrated Industrial Township) and the impact of DMICDC in terms of global infrastructure and ease of doing business Past growth and future growth potential of the industries were analyzed on the basis of industry data and interaction with domestic and international companies Global hubs were analyzed to understand the right industry mix Support from Government in terms of policies and ease of doing business was analyzed All the key selection criteria are explained in brief in the section below. 168

170 Government Support and Policies State Government The State government has given several incentives for promoting industrial activities, thereby strengthening the industrial estates and clusters. Some of the prominent incentives include duty exemptions, tax benefits and subsidies which are given to specific industries will be available to industries in the DNG-IR (Integrated Industrial Township) also. Some of the policies are mentioned below: Industrial and Service Sector Investment Policy 2004 Policy for Food Processing Industry Biotech Policy 2004 IT Policy 2004 Power Policy Policy for promotion of private investment in the development of hi-tech townships in Uttar Pradesh 2005 UPSEZ New Policy 2006 Central government and DMICDC impact As India is set to become a manufacturing hub, Government of India is supporting manufacturing sector through business friendly policies, incentives, land and other infrastructure. Some of the key steps taken by the Government are: Automotive Mission Plan ' to make India a Global Automotive Hub Vision 2015 on Food Processing Industries (focus on increasing the level of processing of perishables from six per cent to 20%, value addition from 20% to 35% and share in global food trade from 1.5% to three per cent.) The Union commerce & industry ministry is in the process of formulating a draft policy (National Manufacturing Policy) to attract investments for setting up mega manufacturing and Hi-Tech hubs in the country With DMICDC, DNGIR will get globally benchmarked business environment, state-of-the-art enabling infrastructure and ease of doing business by industry friendly policy framework 169

171 Analysis of global and domestic industrial hubs for benchmarks Methodology Global hubs were considered for benchmarking to arrive at the right industrial mix. International hubs which were analyzed are Singapore Science Park, Shanghai Caohejing Hi-Tech Park (China), Hsinchu Science and Industrial Park (Taiwan), Research Triangle Park (United States) Domestic hubs which were analyzed are Quest Global Precision Engineering SEZ (Belgaum), Shapoorji Pallonji Biotech Park (Hyderabad), Hi-Tech SEZs in Sriperumbudur Industrial Park (Chennai), Ansal Hi-Tech City All the hubs were analyzed on the basis of the following parameters: Industry Mix Infrastructure Connectivity in terms of road, rail, water and air transport Key growth drivers Government policies It was observed that the best fit case study for DNGIR ((the Integrated Industrial Township) were : Singapore Science Park This was primarily due to the following reasons: Area: ~160 acres Employment: ~10,000 More than 350 MNCs, local companies and national institutions 3 Phase I (75 Acre) started in 1981 II (50Acre) started in 1994 III (37 Acre) started in 2002 Conveniently linked to major road and MRT networks The park is in close proximity to research and tertiary institutions Many leading corporations across a wide range of industries have chosen the Science park as their home for R&D activities. The Singapore Science Park offers research and IT space, catering to disciplines such as: Biomedical sciences Information technology Software development Telecommunications Electronics 170

172 Food technology Flavors and fragrances Materials and chemical Hsinchu Science and Industrial Park (Taiwan) This was primarily due to the following reasons: HSP is located in Taiwan over 1600 acres and is one of the most significant centre s for semiconductor manufacturing Companies: 500 Employees: 120, ,000 Sales: US$30 billion Major Industries Hi-tech Companies, optoelectronics companies, Bio-technology and telecommunication Major Companies Logitech, Macronix, D-link, Phillips, Realtek, Vanguard, Power chip Semiconductor Corp, Microtek Ansal Hi-Tech City (Greater Noida) This was primarily due to the following reasons: Area: ~2500 Facilities: Golf Course, Hotels, Medicity, Educational Institutes Sector Focus: IT and Biotech Resource Base Availability of skilled manpower It is expected that the human capital required for industrial activities will not only come from the existing industrial areas of Greater Noida, Noida, Ghaziabad, Faridabad, Gurgaon etc. but also from other states such as Rajasthan, Haryana, Madhya Pradesh, Bihar etc. Moreover, the educational and research institutions in these regions are expected to play a crucial role in supplying employees to the industries operating in the DNGIR (Integrated Industrial Township). The social infrastructure in the region is well developed with large number of educational institutions, hospitals and recreational activities. Example: Greater Noida has developed as an educational hub with more than 15 management colleges, 10 engineering colleges and schools etc. Availability of Natural Resources and raw materials 171

173 There is good availability of natural resources at present. Uttar Pradesh has adequate resources to support the Biotechnology and Research companies. Setting up of state of the art transport infrastructure would further increase the reach to resource rich areas in India and other parts of the globe. Example: Uttar Pradesh is ranked number one in terms of production of wheat, sugarcane, maize, vegetables, potato and livestock products, including milk. They are ranked two in terms of rice production in India. This large base of raw materials can be leveraged upon by the biotechnology and research units. Access to Consumption Markets The DNG-IR (Integrated Industrial Township) is strategically surrounded by major regions such as Delhi, Faridabad, Greater Noida, Gurgaon etc. It is expected that there will be huge demand coming in from the existing population / SMEs in the region (E.g. Noida, Greater Noida & Ghaziabad) and the neighboring states. Proximity to northern markets has played an important role in the development of Ghaziabad, Greater Noida and Noida. Some of the key catchment areas are Delhi-NCR, Uttar Pradesh, Haryana, Punjab, Rajasthan and Madhya Pradesh 172

174 Infrastructure Facilities DNGIR (Integrated Industrial Township) has a strong regional connectivity in terms of roads and highways, railway and airport. It will further improve due to infrastructural upgradation Development of transport infrastructure in the region will make it well connected with the other parts of the state, country and other strategic locations in the world which will ensure smooth flow (Import/Export) of raw materials and finished products. Industry Analysis DNGIR (Integrated Industrial Township) is a vibrant industrial belt seeing a lot of focus on improving the physical and industrial infrastructure. It is primarily engaged in manufacturing of cars, auto parts, two wheelers, engineering products, consumer electronics, base metal, etc. The region is also a major IT/ITeS hub of India. Food sector is also an emerging sector in the region and is expected to grow at a higher rate due to availability of agricultural produce and thrust from central and state government. Key companies present in the region are: Auto - Honda SielCars, Honda Motorcycle and Scooters, Sumi MothersonGroup, Delphi Automotive System, Denso, Escorts Yamaha Motors Food Dabur, Amrit Foods, DFM Foods, Assoc British Foods, Priya Foods Electrical & Electronics LG, Moser bear, Samsung, Sharp, Daewoo Electronics IT / ITES HCL, BirlasoftLtd, Adobe 173