Gujarat Hydrocarbons and Power SEZ Limited

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1 Gujarat Hydrocarbons and Power SEZ Limited Promoted by Assam Company (Estd( Estd ) Member : Duncan Macniell Group, UK.

2 Structure of the presentation 1. Introduction 2. India A Favored Destination 3. Gujarat Investment Destination 4. Advantage SEZ 5. GHPSL Profile 5. Our Gujarat Presence 6. Energy sector Energy Potential Our scope of activities 7. A Glimpse of Assam Company 2

3 Concept of SEZ s SEZ s are designed to stimulate trade and attract larger foreign investments They are Trade Facilitating enclaves and an engine for economic growth Supported by robust infrastructure and complemented by attractive fiscal package 3

4 Welcome to Gujarat Hydrocarbons & Power SEZ Limited A unique project conceptualized as a : One-stop destination covering the entire bandwidth of Hydrocarbon Value chain and Energy Resources (Conventional & Non-Conventional), located at Villayat Industrial Area, Bharuch, Gujarat. To fuel progress. For the world. For the economy. For all stakeholders. 4

5 India A Favored Destination In recent years, India has emerged as one of the leading destination for investors from developed countries. This attraction is primarily due to lower cost of manpower and good quality production India is the only country in the world with a separate Ministryof New and Renewable Energy (MNRE) MNRE is currently deliberating a draft national Renewable Energy Policy for India which proposes a national renewable portfolio standard (RPS) requiring 10% of Indian electricity to come from renewables by 2010 and 20% by

6 India A Favored Destination Renewable energy remains a small fraction of installed capacity, yet India is blessed with over 150,000MW of exploitable renewables. India has a vast supply of renewable energy resources, and it has one of the largest programs in the world for deploying renewable energy products and systems. India is today ranked fourth globally for installed wind capacity as well as second for Biogas generation. Thanks to its location and geography, India enjoys abundant potential to all renewable energies. 6

7 India A Favored Destination India is one of the countries most involved in developing the use of renewable energies and is trying to make the opportunity for investors more attractive than costly. With the increasingly favorable regulatory and policy environment along with a growing number of entrepreneurs and project developers, India ranked as the third most attractive country to invest in the renewable energy after USA and Germany, in the Ernst and Young Country attractiveness indices. 7

8 Destination Gujarat India s s key growth driver

9 Gujarat Investment Destination 1. Robust Infrastructure Airports There are 11 airports under the operational jurisdiction of Airports Authority of India (AAI), including one international airport located at Ahmedabad, connecting Gujarat with key cities across USA, EU, Asia, as well as with other Indian metropolitan cities. Rail & Roads 71% of the road network in the state is surfaced. Total road length is 73,619 kms and total length of railways is 5,186 kms (8.20% of India). Dedicated Freight Corridor Government of India plans to develop a Dedicated Freight Corridor (DFC) linking Delhi, Mumbai, Kolkata and Chennai. Gujarat accounts for 38% (564 km) of total DFC length (1,483 km). The influenced area of 150 km on either side of DFC is being developed as Delhi Mumbai Industrial Corridor (DMIC). 9

10 Gujarat Investment Destination 10

11 Gujarat Investment Destination 11

12 Gujarat Investment Destination 3. Strategic location Situated on the west coast of India, Gujarat is one of the leading industrial states of the country. Covers a geographical area of 1,96,024 sq km and accounts for 5.96 % of the total area of India. Has proximity to Mumbai, the financial capital of India. Is gateway to the rich, land-locked northern and central hinterland. Has access to all the major port-based countries such as UK, Australia, China, Japan, Korea, Gulf region etc. Has the longest coastline of 1600 kms in the country. 12

13 Gujarat Investment Destination 4. Thriving industrial state Has demonstrated high industrial growth of 12.5% in the last 5 years. Is home to over 800 large industries and 320,000 Micro, Small & Medium Enterprises. Has reported an annual average growth of 9% in the last 3 years. During the same period, has posted an average industrial growth of 15%, higher than other states. Has been the ideal destination for several leading MNCs, including BASF, Bayer, DuPont, GE Plastics, Solvay, Cairn Energy, Shell, British Gas, Huber etc. Accounts for 25.8% of the country's total investment. Contributes 15.59% to the total value of output added by the manufacturing sector of the country. 13

14 Gujarat Investment Destination Gujarat The emerging Power Hub Gujarat has been ranked second overall performance of power sector in India as per the Power sector rating report (2005) of Crisil. The installed capacity of Gujarat has increased from a capacity of 385 MW in 1996 to 9628 MW in 2008 and has achieved 100% electrification stage. There are 23 Power Plants located in Gujarat which includes 9 Thermal power plants, 9 gas power plants, 4 hydro power plants and 1 atomic power plant. The private sector contributes more than 25% in the total installed capacity of power in Gujarat. Gujarat is one of the favored state for renewable energy investments 14

Gujarat Investment Destination Industrial Strengths

approximately 600 bn cubic meters Availability of lignite

distribution and transmission network having about 880

Transmission network of about 31,012 CKms Key players

15 Gujarat Investment Destination Industrial Strengths Availability of Coal Bed Methane reserves of approximately 600 bn cubic meters Availability of lignite reserves to the tune of 2140 million tons Extensive power distribution and transmission network having about 880 sub-stations. Transmission network of about 31,012 CKms Key players across the sector, Torrent power Essar power Gujarat Paguthan Energy Corp. Pvt. Ltd. Adani enterprises ltd. Tata Power 15

16 SEZ Advantage

17 Advantage SEZ A designated duty free enclave and to be treated as foreign territory for trade operations and duties and tariffs No license required for import Manufacturing, trading or service activity allowed SEZ unit to be positive net foreign exchange earner within threeyears Performance of the units to be monitored by a Committee headed by Development Commissioner and consisting of Customs No fixed wastage norms Full freedom for subcontracting including subcontracting abroad Duty free goods to be utilized in 5 years Job work on behalf of domestic exporters for direct exports allowed No routine examination by Customs of export & import cargo No separate documentation required for Customs and Exim Policy In house customs Clearance Support service like banking, post office, clearing agents etc. provided in Zone Complex 17

18 Advantage SEZ Developed plots and ready to use built up space will be made available to the unit holders to commence operations immediately No foreign ownership restrictions in developing zone infrastructure and no restrictions on repatriation. 100% Direct Foreign Investment through automatic route in SEZs and full and free repatriation of export proceeds permitted. Duty-free import/local procurement for the purpose of establishment and maintenance of the unit. Single Letter of Permission (LOP) for both manufacturing and trading activity. Supplies from DTA to SEZ units treated as exports. Domestic supplier may claim DEPB in lieu of drawback or drawback. Unlimited DTA sale on payment of full duties for manufacturing units. 18

19 SEZ Fiscal Benefits Customs and Excise : SEZ units may import or procure from the domestic sources, duty free, all their requirements of capital goods, raw materials, consumables, spares, packing materials, office equipment, DG sets etc. for implementation of their project in the Zone without any license or specific approval uty free import / domestic procurement of goods for development, operation and maintenance of SEZ units oods imported / procured locally duty free could be utilized over the approval period of 5 years omestic sales by SEZ units will now be exempt from SAD ncome Tax : 00% Income-Tax exemption for first 5 years and 50% for next 5 years thereafter and 50% of the ploughed back export profit for 19

20 SEZ Fiscal Benefits Foreign Direct Investment : 100% foreign direct investment is freely allowed in manufacturing sector in SEZ units under automatic route, except prohibited items No cap on foreign investments for SSI reserved items Central Sales Tax Act : Exemption to sales made from Domestic Tariff Area to SEZ units Service Tax : Exemption from Service Tax to SEZ units Off-Shore Banking (OBUs): Setting up of Off-Shore Banking Units allowed in SEZs OBUs entitled for 100% Income-Tax exemption for 3 years & 50% for next 2 years 20

21 GHPSL Profile

22 GHPSL Profile Location Advantage Bharuch Bharuch is located in the southern part of Gujarat, near the Gulf of Khambhat in Arabian Sea. Dahej Port, operated by Gujarat Maritime Board (GMB), has made significant contribution to facilitate industrial growth in the district. Excellent port connectivity with the presence of Dahej port makes it an investment destination in port & ship-building activities. Centrally located within the industrial belt, Dahej is an ideal location in Asia to serve north, west and central India and international destinations such as, Middle East, Africa, Europe and North America. The district has a large number of industrial estates and Special Economic Zones (SEZs). 22

23 LOCATION Gujarat Hydrocarbons GHPSL Location and Power SEZ Limited

24 GHPSL Profile Extensive connectivity -Road, Rail, Air & Port: Road Connectivity: Connected to NH-8-Ahmedabad-Mumbai and State Highway. Direct road connectivity to the nearest railway tract and port. Arterial roads connecting the SEZ to the National Highway and Expressway. Rail Connectivity: Nearest Rail Station - Bharuch. Airport Connectivity: Vadodara (80 kms). Port Connectivity: Dahej (all-weather port). Area falling within the zone of PCPIR (Proposed Petroleum, Chemical & Petro Chemical Investment Region). 24

other global markets, including: Efficient transport

Environment-friendly zone. Uninterrupted power supply.

25 GHPSL Profile Robust infrastructure Modern infrastructure support and amenities at par with industrial estates in other global markets, including: Efficient transport facilities within the SEZ and to & from the city area. Environment-friendly zone. Uninterrupted power supply. Extensive crude, petro-product, gas pipeline network at the project site. 25

26 Our Gujarat presence

27 Our Gujarat presence Area Type of SEZ 108 hectares of land for dedicated SEZ for Energy including New and Renewable Energy (additional acquisition of 200 Hectares of land under process) Dedicated SEZ for Energy including New and Renewable Energy for providing major equipments, ancillary/auxiliary equipments, machinery, spare parts, consumables, warehousing, storage, technology, services and R&D Status Formal approval received. Investment Opportunities Enormous Target Clients Energy Sector companies and Ancillary industries 27

28 Our Gujarat presence Export Potential Approx MM USD per annum, when fully operational. Employment Potential For around 15,000 personnel during construction & development, besides indirect employment from infrastructure service. Project Timeline Commercialization targeted by

29 GHPSL SEZ SCOPE

30 Forms of Energy Primary & Secondary Energy Commercial & Non-Commercial Energy Renewable & Non-Renewable Energy Primary Energy : Stored in Nature Example : Coal, Oil, Gas Biomass, Nuclear Energy Thermal Energy stored in earth Secondary Energy : Example : Coal, Oil & Gas, Converted into Steam and Electricity 30

31 Forms of Energy Commercial Energy : Example : Electricity, Lignite, Coal, Oil and Natural Gas Non-Commercial Energy : Example : Firewood, Agrowaste, Solar, Animal Power, Wind Renewable Energy : Example : Wind Power, Solar Power, Geothermal Energy, Tidal Power & Hydro-Electric Power Non-Renewal Energy : Example : Coal, Oil & Gas 31

32 Energy Scenario Assuming, optimistically that by Domestic coal production to rise 3.5 times the value of to reach 525 Million Tonnes oil equivalent (MMTOE) per annum Domestic + equity oil 100 MMT per annum Domestic Gas production including CBM 116 MMTOE per annum 75% of MW hydro & MW of Nuclear potential to deliver 118 MMTOE of primary energy India s import dependence would still rise to 36 47% compared to 30% in Source : Energy coordination meeting paper by Dr. Kirti Parekh 32

33 Opportunities and Challenges Huge potential for development of market ; different forms of Energy Environmental issues main concern Pre-eminence of Coal Coal & Lignite in abundance but of poor quality India s reliance on new & renewable energy to increase manifold Tremendous scope to manufacture clean, New & Renewable Energy Products 33

34 India s s Requirement Energy needs to fuel a sustained 8% annual growth, to rise by atleast % annually Energy to GDP elastaticity to be around 0.8, 0.75, 0.67 respectively in two-three decades Thus Primary Commercial Energy required to increase to MMTOE to16200 MMTOE CURRENT COMMERCIAL ENERGY MIX Coal : 50 60% Oil : 30 35% Gas : 9% Nuclear & Hydro : 4% Requirements by Coal to increase by 4 5 times Oil & Gas to rise 4 5 times Nuclear & Hydro to 8 10% 34

35 GHPSL SEZ SCOPE Manufacture all items and components related to Energy & New & Renewable Energy Coal: Coal & Lignite in abundance but poor quality Scope : Make it usable, as it pollutes atmosphere and source of greenhouse effect Manufacture filters for power industries Scrubbers Nitrogen Oxide Removal Equipment Sulphur Dioxide Removal Equipment 35

36 GHPSL SEZ SCOPE Gas : Gas market growing in India, both LNG as well as Natural Gas likely to be available as source of energy Scope : Manufacture gas turbines, steam turbines, Cogeneration plant & other, utility equipments, Kits for CNG, LNG etc. Wind: India second world s fastest growing market Wind Energy potential in Gujarat 7362 MW Total Total Potential India : MW Scope : Manufacture wind mills, wind turbines, wind pumps for agriculture and other utility equipments like wind blades and towers etc. 36

37 GHPSL SEZ SCOPE Solar: India a tropical country Huge potential for Solar Energy use Scope : Manufacture Solar Power Plants 40 MW, Electrical Solar Systems to Power the Grid Solar Photovoltaic for Cell Technologies for domestic use; Solar Electric Generators, Solar Vacuum Tube, Solar Fridges, Cooker, Inverter etc. Biomass: India rich in Biomass Potential around MW Gujarat Potential 200 MMV Scope : Manufacture Biomass treatment plants & Biomass gasification plant 37

38 GHPSL SEZ SCOPE Nuclear: Aims to provide 25% of electricity needs by 2050 in India Signing of nuclear deal allows access to uranium Scope : Manufacture Nuclear Heat Exchangers, Heavy Walled Vessels, Nuclear upgraded Instruments, Nuclear Steam Generators, Primary components for Nuclear Plants etc. 38

equipments for offices, Computers, Heating & Cooling System, Lighting, Automobiles, Assembly Plants, Waste Water

39 GHPSL SEZ SCOPE - New Energy Development Manufacture, Develop and Market Advance battery techniques, Lithium-ion, NIMH Batteries, double layer capacitors Ultra capacitors for Consumer Electronics Energy efficient star compliance equipments for offices, Computers, Heating & Cooling System, Lighting, Automobiles, Assembly Plants, Waste Water Treatment etc. Proton Exchange Membranes Hydroelectric Turbines, Micro Hydro Generator Carbon Credit Business (CDM Project) 39

40 Assam Company Limited Always a Pioneer

41 Assam Company Limited Always a Pioneer A Glimpse of Our Background Backed by a pioneering 167-year-old history, Assam Company Limited, founded in 1839: Is the flagship company of the Duncan McneillGroup, UK. Historical Background Was formed at a meeting of distinguished British merchants and Indian luminaries such as Prince DwarkanathTagore(father of Noble Laureate RabindranathTagore), BabuMotilalSiland others in London on February 12, 1839, with a capital of $500,000. Immediately after formation, merged with The Bengal Tea Association, a company formed in Calcutta. From 1844, the company was on an upswing and in recognition of its pioneering excellence, it was granted a Deed of British Parliament and was awarded the Royal Charter by Her Majesty Queen Victoria in

42 Assam Company Limited Always a Pioneer A Glimpse of Our Background In 2005, Mr. David Dewherst, Hon'bleLt. Governor of Texas, USA, presented the "Wooden Hammer of Texas" to Dr. KK Jajodia, the Chairman of Assam Group of Companies. Declared its first dividend in Erstwhile group Company was the first to find oil in Asia, 2nd in the world after oil discovery in Pennsylvania. 42

43 Assam Company Limited Always a Pioneer Profile Is one of India s leading companies with business interests in Tea, Oil & Gas and Infrastructure. Is a quality producer of tea, operating 16 factories, 19 tea estates and gardens spread over 12,000 hectares. Provides employment to over 40,000 persons, along with housing, medical aid, education etc to them and their dependants. Has participating interests in six assets in the Assam- Arakanbasin in the north east India, one of the most prolific basins in India. 43

Assam Company Limited Always a Pioneer Is entering into tie-ups or collaborations for Foreign Direct Investment for various projects relating to

Operates three fields independently under a service contract with ONGC. Has a Joint venture with Austin Exploration Ltd.

44 Assam Company Limited Always a Pioneer Is entering into tie-ups or collaborations for Foreign Direct Investment for various projects relating to Oil & Gas. Re-entered the Hydrocarbon industry in 1994, post liberalization of the Indian economy. Operates three fields independently under a service contract with ONGC. Has a Joint venture with Austin Exploration Ltd., a Texas based company, in two Onshore Blocks and two Gas assets in US and two exploration blocks in Australia. Has dedicated team of national and international team of professionals, technocrats, consultants and associates. 44

45 Our Scope of Activities The opportunity is truly energizing! And the potential for growth and investment really explosive! So let s join hands in the march to progress. 45

46 Our Scope of Activities Thank You Contact Information Developer Company: Gujarat Hydrocarbons & Power SEZ Ltd. Address: VIPPsCentre, 3 rd Floor, GK II, New Delhi Chairman s Secretariat Tel.No. : Fax : chairmanoffice@assamco.com 46

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