Setting of Bulk water pipeline from Budhel to Rajula. Water Supply. Government of Gujarat

Transcription

1 Setting of Bulk water pipeline from Budhel to Rajula Water Supply Government of Gujarat

2 Contents Project Concept 3 Demand & Supply 4 Market Potential 5 Growth Drivers 7 Gujarat Competitive Advantage 8 Project Information 10 - Location/ Size - Infrastructure Availability/ Connectivity - Project outline - Raw Material/ Manpower - Key Players/ Machinery Suppliers - Potential collaboration opportunities - Key Considerations Project Financials 15 Approvals & Incentives 16 Key Department Contacts 17 Page 2

3 Project Concept Bulk water pipeline A water pipeline is designed to transport large quantities of water across long distances at adequate pressure and flow Water is transported for mainly three purposes; Domestic usage (potable water) Agriculture (Irrigation) Industrial usages (Power production, Mining, Oil & Gas, Manufacturing) Long distance projects uses the large diameter pipelines wherein more security and capacity is needed to transport the water and small diameter pipelines are being used for distribution to individual suppliers for short distances. Three type of water transmission systems has been used, through which water is conveyed: Complete gravity flow, Direct pumping and Combined gravity & pumping. Pumping system are majorly used for water transmission for the vast plain areas such as Gujarat, however in hilly regions gravity flow system is more economical to use. Water safety plan is a very important aspect to remove the hazardous chemicals from the water and to avoid the water contamination. It comprises the steps that include gathering information on the system, inspection of the water flow and identification of potential water quality problems. Type of Water Transmission pipelines Page 3 The water pipes are available in various types and sizes. It is divided into three groups based on material used in their manufacturing: Metallic pipes: The pipes such as Cast Iron pipes, Steel pipes and Galvanized Iron pipes Iron pipes are quite stable for high water pressure projects. Steel pipe are extensively used for long distance and large diameter projects Cement pipes: The pipes such as Cement pipes, Asbestos cement (AC) pipes, Cement concrete pipes. Cemented pipes are expensive but noncorrosive and extremely strong and durable Plastic Pipes: The pipes such as Unplasticized PVC (UPVC) pipes, Polythene pipes (low density)

4 Market Potential The projected municipal and domestic water demand will double by 2030 to 108bcm while projected demand from industry will be 196bcm pushing overall annual growth to 3% Water demand on the rise in India Water demand across India (billion cubic metres) Others Industry 1,093 Drinking Water Irrigation Key metrics 80% of the water supplied specially in urban areas becomes wastewater 40% water losses out of total distributed water in India, highest in world 33% expected rise in Indian population, from 1.2 bn in 2015 to 1.6 bn by 2030 Total water production is estimated to rise but water production per household is expected to decrease. Rising demand and low per capita production is increasing the over exploitation of ground water. Around 225mn people in India do not have access to safe drinking water. In 2015, nine states in India including Maharashtra, MP, Karnataka and UP declared drought with decreasing water storage capacity. Maharashtra and Gujarat stored only 21% water out of their total capacity average of 44%. Total water production (bcm) Total water production/ Household (litre/day) , Source: Business Monitoring Intelligence (BMI) Growing water needs of population and uneven water distribution in India is giving rise to investment in interstate water pipelines to water scarcest area Maharashtra government plans to increase the water use efficiency by 20% till 2017 with the focus on having closed pipelines. State government in Karnataka also signed an agreement with Israel's Tahal Group to design water supply system for a US$74mn to cover 131 villages in state, pipeline network of a 600km and 8 reservoirs. Gujarat government has laid down water pipeline from Chavand (Amreli) to Dhoraji (Rajkot) for providing Narmada water to 156 villages & 5 towns in Rajkot. Page 4

5 Market Potential Water supply for different purposes (%) Industry 20% Domestic 10% Agriculture 70% US6bn Current market size for Indian water supply and sanitation market in 2014 US$10bn- US12bn Expected market size of Indian water supply and sanitation market by 2017 Annual Global water demand to increase from 3,500km 3 in 2000 to 5,500 km 3 in 2050 International markets like Middle east, Americas and North Africa are showing increased demand for the large diameter pipes for water transmission Many states including Gujarat, Maharashtra and Karnataka are setting up bulk pipelines to meet the demand of their respective states. New water pipelines to be laid in India (Km) Water pipeline market- Gujarat scenario Gujarat has wide water supply grid spread across 1,20,769 km that aims to serve 75% of the Gujarat population Surface water and groundwater development in Gujarat % of domestic water requirements met % of industrial water requirements met The overexploitation of the ground water leads to threat on sustainable supply of drinking and domestic water. Adequate supply of safe potable water on a regular basis generate the need for robust transmission water system in the state Ground water Surface water Gujarat has 2,684 km of bulk pipelines, 1.20 lakh km distribution pipelines, 23,693 storage and hydraulic structures and network of 181 water treatment plants with a total installed capacity of 290 crore litre/day The state has a master plan for creation of State Wide Water Supply Grid which aims at inter basin water transfer from sustainable surface water sources to water scarce and quality affected areas. Page 5

6 Market Potential State Wide Water Supply Grid is looking to supply drinking water to 75% population of the state by creating bulk water transmission pipelines, water treatment plants, service reservoirs, distribution pipeline network and allied structures. Narmada pipeline project is world s largest drinking water pipeline project which covers 9633 villages and 131 towns by covering all the region mainly Saurashtra, Kachchh and parts of North Gujarat in the state. The project covers more than 55% of the state villages and more than 80% of the urban centers in the state. The Sardar Sarovar Dam height has been increased from 121.9m to 138.6m and work on 10,216.9 km length has already been completed. It is a multiple Interstate project which covers 4 major states Madhya Pradesh, Gujarat, Maharashtra and Rajasthan. Gujarat has world s largest man made fresh water reservoir with a storage capacity of 10,000 mn cubic meter Gujarat launched the biggest pipeline network in the state under which Narmada s water would be supplying water to Saurashtra and Kutch regions. This pipeline will benefit 5,587 villages and 116 towns in the state Swarnim Gujarat Bulk Pipeline provides 165 crore litres of potable water daily to about 1.75 crore people with the cost of INR 2,500 crore Capacity increase with water pipelines is laid down in Rajkot district to cover 579 villages for an additional 20 MLD Development of 6 smart cities (Gandhinagar, Ahmedabad, Surat, Vadodara, Rajkot, Dahod) in Gujarat is driving the demand of better water connectivity in the state In 2015, the Union government started laying the groundwork for privatisation of water distribution in urban India. The Ministry of Urban Development preparing a model concession agreement that would serve as the framework for public-private participation (PPP) in the water sector in 100 smart cities and 500 additional cities in India Reduce non-revenue water from high value of 40% Plug leakages Increase percentage of metered water connection from present value of only 20% Page 6

7 Growth Drivers Growth drivers for tourism Gujarat, one of the leading state in terms of economic growth and industrialization, falls under the water-stressed category Despite having 185 rivers, 5.96% of the total area of the country and 4.93% of the total population, Gujarat has only 2.28% of the total surface water resources available in India. 70% of Gujarat's fresh water resources are located only in 30% of its geographical area. At present, there is disparity in water availability across different regions as South and Central Gujarat has more than 50% of the total water availability. Water demand supply gap on the rise in Gujarat Water demand (bcm) in Gujarat is expected to rise however per capita availability of water (in bcm/annum) is decreasing Increasing water networks To counter the dependency of regions such as Saurashtra and Kutch on rain water, the Gujarat government is expanding the Narmada canal network as work on 5,000km of the 12,000km network is under progress Water management during crisis In 2016, 65% of the 500 dams and reservoirs are empty due to drought 100+ cities in the state receive water for less than 2 hours/day Low quality standards 85% of the available water has high pollution level Of 33 districts in the state, 20 are affected by salinity, 18 are affected by fluoride, 17 are affected by chloride Over exploitation of ground water Low surface water availability is causing the over usage of ground water 92% of the ground water is used in irrigation Rising focus on the sustainable and effective water technologies due to decrease in per capita availability of water and deteriorating water quality, presents an attractive business opportunity for installation of water network systems Page 7

8 Gujarat - Competitive Advantage First state to address the water pipeline contamination issues and brought treatment, stabilization and disposal facility for cluster of industries Gujarat is among the top five states in India in terms of water storage capacity per unit land area Gujarat provides 100 litre daily rural water supply per head against the country average of 55 litres Gujarat is one of the top states with more than 650 dams and 35 large and medium reservoirs Strong technological partnerships with Japanese agencies helping Gujarat government set up water projects First state in Asia and fourth state in the world with a Department for Climate Change State-wise number of dams Maharashtra Madhya Pradesh 905 Gujarat 666 Chhattisgarh 258 Karnataka 231 Rajasthan 211 Odisha Rising investments in Gujarat to flourish the water market INR24.5 bn for 361 km long pipeline networks, supplying daily 165 crore litre Narmada water to total 5,587 villages and 116 cities/towns INR12.32 bn contract has been signed by Uttar Pradesh Jal Nigam and Sardar Sarovar Narmada Nigam Ltd. for water pipeline infrastructure INR0.8 bn invested by Essar projects in creating pipeline infrastructure for sale of water to industries around Jamnagar, Gujarat Gujarat government plans to lay pipeline across the state for drinking water and industrial usage from the network of Narmada canal in areas such as Saurashtra, Kutch and North Gujarat. Page 8

9 Gujarat - Competitive Advantage Ease of Doing Business: Only state which comply 100% with environmental procedures. Gujarat fares highly when it comes to setting up a business, allotment of land and obtaining a construction permit Key industries: Gujarat is the leader in key industrial sectors such as chemical, petrochemical, auto and its allied sector, pharmaceuticals, engineering, textile, jewellery etc. Gujarat ranked first in ease of doing business as per DIPP report 2015 Gujarat has attracted cumulative FDI worth US$12 bn from April 2000 to March 2015 Gujarat clocked the highest growth rate in pharmaceutical market at 22.4% surpassing the industry growth rate of 10.9% Gujarat contributes around 19.1% to India s total exports of goods in More than 10% of the country s factories are in Gujarat while manufacturing sector contributes 28% to its GSDP Gujarat, with 42.6% of its population residing in the urban areas, is among the top three urbanized states in the country Gujarat is one of the power surplus states in the country, as a result it helps in bringing huge amount of investment from the industries and tagged as preferred investment destination in the country Skill development industry in the state is well-developed with many technical institutions (786 ITI s and 52 Skill upgradation centres) Page 9

10 Project Information Site Location Setting up bulk water pipeline from Budhel to Rajula 118 Kms (with carrying capacity of 100 MLD) The project details are as follows: Locations Budhel, (Bhavnagar) Gujarat, India Rajula, (Amreli) Gujarat India Budhel comes under Bhavnagar district and has population of 7760 and has dedicated Navada Pumping Station and Navada-Budhel Pipeline. Rajula taluka comes under Amreli district has population of 38,489. Location Budhel is situated in Bhavnagar, Gujarat, India with geographical coordinates area North, East. Rajula is a district in Gujarat and its geographical coordinates area North, East. Budhel Rajula Maximum temperature : 34 C Minimum temperature : 26 C Maximum temperature : 31 C Minimum temperature : 24 C Page 10

11 Project Information Pictorial representation- Proposed water pipeline between Budhel and Rajula Components Pump House Valves Fittings Pressure Gauges Thistle blocks Maintenance team Intake structure Store room Page 11

12 Project Information Infrastructure availability / connectivity Logistics & Connectivity Air Gujarat has highest number of operating airports in India including 16 Domestic and 1 international airport. Nearest airport to Budhel is Bhavnagar airport at 7.5 km and Nearest international airport is Ahmedabad at 185 km. Rajula is well connected Diu Airport is at 64 km and Bhavnagar is at 103 km away. Road Budhel and Rajula is well connected with district roads, state highways and national highways NH-8. Road connectivity increases the efficiency for water networks and monitoring particularly in remote areas. Port Train Gujarat with the coastline of 1600 km is well connected to all the major ports such as USA, Canada, Europe, Australia, China, Japan, Korea, Gulf and African countries. Rajula Pipavav port is well connected with other ports and Budhel is also connected with many ports in the state. Budhel is connected via rail broad gauge to major cities in Gujarat The Government is also developing extensive rail link across Gujarat The State Government ensures robust physical/industrial infrastructure & utility linkages Water Gujarat has a state wide water supply grid spread across 1,20,769 km that aims to serve 75% of the Gujarat s population. Power Gujarat boasts of 24 hours 3- phase uninterrupted power supply under the Jyotigram Yojana. Gujarat Energy Transmission Corporation Limited (GETCO) Is an electrical power transmission company with total of 1473 no pf substation for 400 KV, 220 KV, 132 KV and 66 KV system voltage. Page 12

13 Project Information India Leading Players Company Corporate office Business Offerings Essar Projects Ltd. Mumbai Construction projects on Water pipeline and facilities GKC Pojects Limited Usha Projects private limited Underground Pipeline & NDTS private limited Corrtech International pvt. Ltd. DSC Limited East India Engineers GVPR Engineers limited Gammon Hyderabad Orissa Bihar Ahmedabad New Delhi Kochi Ahmedabad Mumbai Municipal and industrial water and wastewater treatment, Desalination plant Pipeline system and engineering, Fabrication, Iron ore pipeline Pipeline construction and horizontal directional drilling (HDD) Pipeline Construction and Cathodic Protection Pipelines, urban infrastructure, power and real estate projects water supply projects, pipe line construction projects, road laying and highway construction projects Infrastructure projects in the field of irrigation, Water Engineering and construction projects of water pipeline projects Page 13

14 Project Financials Cost structure of developing a bulk water pipeline in Gujarat The project cost for the proposed pipeline of 188KM between Budhel and Rajula of 100MLD capacity is arrived at based on the estimated unit cost which includes all machineries, erection charges, civil works etc. Water Pipeline Project cost Length 118 Km Total Pipeline Length (m) Per unit price Total Price (INR) Diameter 2 meters 80,900 15,000 1,213,500,000 Diameter 2.1 meters 37,290 17, ,930,000 Diameter 0.9 meters 200 8,000 1,600,000 Diameter 0.2 meters 100 2, ,000 Additional Equipment's Total 1,849,230,000 Equipment s/components No of Units Total Price (INR) Pump Station 1 Valves 10 Fittings 15 Pressure Gauges 10 Pumping Machinery 6 Other items Land lease rent & development (1500 sq.m x 36.00x100) Ground level sump pump 1 Excavation cost Equipment Cost/ Engineering cost NA NA NA Approximate cost for all the equipment/ study is estimated to be around INR3bn Store room NA The total cost of the project is estimated to be INR5 billion The above estimates are derived from similar projects executed in Gujarat. The total price can vary based on plant size and need of additional equipment's. Page 14

15 Project Information Manpower requirement Responsibility Number General Manager 1 Project Manager 1 Supervisor / Foreman 20 Surveyor 5 Mason 20 Welder 20 Machine Operator 5 Fitter 10 Technical / Engineer 25 Unskilled labour 500 Other Staff (security) 10 Total 600 approx. Key considerations The construction of a major water pipeline is extremely expensive and can overshoot budget. With manufacturing, labour, and installation, pipeline projects can cost billions of dollars Maintenance must be done every day in order to keep the pipeline working effectively Pipelines need to be monitored continually and water quality must be constantly checked. As a result of large distances that major water pipelines can cover, maintenance fees are extreme The construction of water pipelines is also very taxing on the land. Thousands of miles of massive pipes can disrupt ecosystems, ruin scenery, and act as an obstruction. Underground pipelines require huge trenches to be dug, also disrupting the land. The pumping of water out of sources such as aquifer, a reservoir, or a watershed basin can cause severe damage, such as water level drawdowns, which can affect coastlines, aquatic life, plant life, and economic activity. The water replenishment rate is not fast enough to rejuvenate water sources that are being reduced through large-scale transfer Technology transfers are one of the key factors that have driven the government s promotion of FDI A higher degree of technical skill for selection of process conditions and adhesive/resins Reduction in Start-up and Operating Wastages Uninterrupted Power supply Page 15

16 Approvals / Incentives Approvals Required Infrastructure development: To purchase land, for land allotment, approvals of plans of the premises, process layout under the purview of Gujarat Industrial Development Corporation. Power & Water Connection: Additional power for the project can be procured from the existing supplier Paschim Gujarat Vij Company Ltd. (PGVCL). Similarly, water for the project can be procured from the Gujarat Water Supply and Sewerage Board. Environmental Clearance: CRZ Clearance (Coastal Clearance) needs to be obtained from Gujarat Coastal Zone Management Authority (GCZMA). Department of Environment and Forest in case of investor applies for Forest land. Additionally, pollution clearance from Gujarat Pollution Control Board (GPCB) is also required. Water & Irrigation: Gujarat Water Infrastructure Limited (for drawing water from Saurashtra and Kutch region), Irrigation department (For drawing water from canals/rivers and reservoirs from Narmada canal), Sardar Sarovar Narmada Nigam Limited (in case the industrial unit is located in proximity of Narmada canal) Incentives from Government of Gujarat 1 2 Gujarat government is also promoting solar powered desalination plant because of environmental concerns. The use of solar photo voltaic power in the process would further reduce the operation cost. Financial assistance for skill development centres, for technology acquisition and also for supporting energy and water conservation as well as for environmental compliance. 3 Tax holidays: The benefits of tax holidays as provided under Section 80 (I) (A) of the Income Tax Act for development, operation and maintenance of power plants, airports, ports, waste management facilities, water treatment plants, etc. is available to the developer. Page 16

17 Gujarat Pollution Control Board, Government of Gujarat Gujarat Water Supply & Sewerage Board Gujarat Water Infrastructure Limited Gujarat Urban Development & Urban Housing Department Gujarat Infrastructure Development Board Gujarat Water Resources Development Corporation This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision. Gujarat Water Supply Sewerage Board "Jal Seva Bhavan" Opp. Air Force Station, Sector - 10A, Gandhinagar Office : , msgwssb@gmail.com