Development of
Smart Industrial Port City
at Mundra
Port, Port Services and
Logistics
Government of Gujarat
Contents
Project Concept
3
Market Potential
4
Growth Drivers
7
Gujarat – Competitive Advantage
8
Project Information
11
- Location/ Size
- Infrastructure Availability/ Connectivity
- Smart Components for SIPC
- Key Considerations / Key Players/Potential
Collaboration Opportunities
Project Financials
15
Approvals & Incentives
16
Page 2
Project Concept
What is Smart Industrial Port City?
► Smart City Reference Framework is driven by the following
principles
► Well-being
► Equity
► Efficiency
► Foresight
► Smart cities also have an element of ICT as a remedy to economic
and environmental problems
► SIPCs would consists of Port-led industry and townships along with
green initiatives like wind and solar energy parks around the ports.
Similar
India:
projects
in
► Kandla
Smart
Industrial Port City
Project, Gujarat
► Cochin
Smart
Industrial Port City
Project, Kerala
Mundra Port: Brief Overview
►
Mundra
►
►
►
Mundra Port is the largest private port of India located
on the north shores of the Gulf of Kutch near Mundra,
Kutch district, Gujarat
It is a deep draft, all-weather port with a high degree of
mechanisation.
It is the only port in the country with handling and
storage facilities for crude oil, containers, dry bulk,
break bulk, automobiles and liquid cargo.
Mundra can berth the largest post panamax vessel and
can handle four million TEUs or Twenty feet Equivalent
Unit.
Smart Industrial Port Cities at Gujarat
►
Smart Industrial Port City as a concept is being driven by the Government of India through the
Ministry of Shipping which endeavors to create a smart city around every major port city such as
Kandla, and Paradip
►
The SIPCs would seamlessly integrate the Smart City concept with port cities to bring in more
industrialization in these areas and support the labour and employment as a result
►
The smart city would be self sustainable with clean and green environs, disciplined development,
responsive to people’s needs, planting of substantial green cover (indigenous trees mainly) to
mitigate rising CO2 levels and the urban heat island effect
►
The mitigation of Carbon footprint will also involve installing Smart Street Lighting, Incentivising
the use of renewable energy sources like solar and wind energy, tidal power
►
Recycling of goods and waste will also be incentivised
►
These cities comprise of wide roads, green energy, advanced townships and greenery.
►
In addition, these smart cities and ports have e-governance links, international standard facilities,
special economic zones, ship breaking and ship building centers besides allied things.
►
These smart cities would also house schools, commercial complexes and other amenities.
Source: Reconceptualising Smart Cities: A Reference Framework for India
Page 3
Market Potential
Overview of Port Sector
► India has 12 major ports and 200 notified
non major ports.
► In 2014-15, out of 200 non major ports, 69
ports handling cargo traffic.
► From April 2015 to December 2015, India’s
major and non major ports handled around
786 million tonnes (MT) of total cargo
► Major ports of India handled a traffic of
447.05 million tonnes (MT) from April 2015 to
December 2015
► Major ports of India have improved their
efficiency of operation particularly in terms of
turnaround (TRT). The average turn around
time (Port A/c) improved from 2.4 days in
2000-01 to 2.13 days in 2014-15.
► India has invested around US$ 2.6 Bn in port
and shipping sector between 2011-2014
Kandla
Kolkata
Haldia
Mumbai
Paradip
JNPT
Vishakhapatnam
Marmagoa
Ennore
New
Mangalore
Cochin
Chennai
Tuticorin
Source: Ministry of Shipping, GoI , Annual Report 2015-16
Page 4
►
India is the seventeen in terms of world
tonnage in the world
►
India has the coastline which accounts than
7,517 km long
►
Most of the cargo ships which navigates to
East Asia and America, Europe and Africa
passes through Indian territorial waters
Gujarat Port Sector
► Gujarat has an advantage of longest
coastline account approximately 1600 km in
India
► Gujarat accounted around three fourth of
the total traffic handle by non major ports
followed
by
Andhra
Pradesh
and
Maharashtra
► Gujarat has the highest number of
operational ports & commercial cargo
ports
► First State to take up Port Privatization in
the Country
► First State in India to have a dedicated
Chemical Terminal
► State has also World’s largest ship
recycling yards at Alang
Market Potential
Industry Profile in the Region
►
►
Bhuj (~50 kms)
Morbi (~180 kms)
Mundra
►
Surendranagar
(~260 kms)
Rajkot
(~240 kms)
►
►
Between 2006 and 2014 – the cumulative MSME units
was 1636 while the cumulative investment during the
same period stood at INR 143889.28 lakhs
Employment generated in the district in the MSME
sector including manufacturing and service totaled
26,988 (2006-2014)
Manufacturing units set-up in Kutch during the period
2006 to 2014 stood at 1288 amounting to a total
investment of INR 121466.32 lakhs. While employment
generated during the period was 22,312
Service sector in Kutch during 2006-14 stool at 348
with an investment of INR 24422.96 and employment
generated was 4,676
As of June 2016 INR 377 crore investment in large
projects were commissioned in Kachchh district and an
investment of INR 674 crores in large projects were
under implementation
►
Kachchh is rich in non-metallic minerals
►
Focus industry sectors include – minerals, port based industries, marine chemicals, engineering,
infrastructure projects, chemicals, ceramics, and textiles
►
Kandla and Mundra are the two ports present in the district to support the industrial and
commercial activities in the state and accounts for very high cargo movement
►
Accounting for over 60% of the toital salt production in the state – Kachchh has large reserves of
limestone, bauxite, lignite and bentonite and is a preferred destination for mineral based
industries. Nearly, 75% of the total minerals of the state are produced in Kachchh
►
With 12 SEZs, 13 industrial estates and 3 industrial parks, the district is poised to become one of
the most attractive destinations for industries in Gujarat
Close proximity to Mundra Special Economic Zone (SEZ), India’s
largest port-led multi-product SEZ
►
The Mundra SEZ has a variety of industrial clusters specializing in Light engineering, Auto &
Auto Ancillaries, Textile & Apparel, Chemicals & Pharma, Plastic Processing, Stone & Minerals,
Food & Ago, Timber & Furniture and Minerals
►
The Mundra port supports these industries and growing export volumes through multiple
services such as Dry Bulk Cargo (Fertilizer, Agri, Minerals, Coal), Break Bulk Cargo (Steel),
Liquid Cargo (Crude), Container Cargo (Roll on & off – RoRo), Dredging and Marine Services.
Source: Industries in Gujarat – Statistical Information – 2014, Government of Gujarat
‘Brief Industrial Profile of Kutch District’, MSME – Development Institute, Government of India
http://www.globalgujarat.com/images/kachchh-district-profile.pdf
Page 5
Market Potential
Demand Scenario - Industrial
►
The demand for land requirement has been arrived at accounting for different methodologies
►
A study conducted on the Mundra Industrial Park City has divided the development over a 25
year period in to Phase I (2001-2010) and Phase II (2010 to 2025)
►
Accordingly, share of industrial demand for Mundra has been estimated as a share of the total
industrial demand into the state of Gujarat
►
The Land requirement in Phase I is estimated to be 680 ha by computing the current trends of
spatial distribution of industrial investments in the Gujarat and Kutch. Land requirement for
Phase II is estimated to be 1,360 ha
►
The Land requirement in Phase I is estimated to be 750 ha by computing the investments in
Mundra into Chemical industries, Engineering industries, Mineral industries and other industries
derived separately. The estimate for Phase II using the same methodology is 1,015 ha
►
Based on both the methods of demand estimation a the final estimates for land requirement in
Miundra for Industrial purpose is:
►
Phase I: Industrial Demand – 680 Hectares
►
Phase II: Industrial Demand – 1000 Hectares
Demand Scenario - Non-industrial
►
Based on a primary survey conducted by taking the initial interest expressed by potential
investment the residential township estimates were derived
►
In Phase I – the proposed investment is estimated to be INR 140 crores with the investment to
area ration at 750,000
►
In accordance with this calculation – the total employment to be generated is estimated to be
1,830
►
After factoring for dependent population – the total population in the residential township will be
around 3,700
►
The average density of 80 persons per hectare is assumed for the township which would
translate into 50 Hectares of land requirement for residential township in Phase I of the project
►
Additionally, Ecologically sensitive areas will be developed and an offshore aquatic conservation
park is proposed to be developed in the Gulf of Kutch
►
Located just off the State Highway that connects the towns of Mundra, Anjar and Gandhidham,
the industrial park is approximately 35 kms from the nearest rail facility at Gandhidham
►
A project for rail connectivity from the Port of Mundra to Anjar / Gandhidham is underway
►
The average cost of infrastructure provision at the estate is INR 125 per sqm
►
The infrastructure components for the industries will include internal roads, drainage, compound
wall, landscaping, waste treatment system, sewerage system, bus terminals, fire stations, police
station, post and communication
Page 6
Growth Drivers
1
2
3
4
5
Abiding Growth
Traffic in Gujarat
Delhi Mumbai
Industrial Corridor
in Gujarat
Sagarmala
National
perspective plan
Make in India
Program
New Industrial
Policy 2015
► Gujarat non-major ports handled 339.78 million tons of traffic in
2015-16, with CAGR of 11% in the last decade
► Gujarat ports (including Kandla) account for 41% of traffic in the
total national port traffic - more than any other State
► Captive jetties contribute the largest share of 45.6% followed by
private ports with 44.1% in total traffic handled by Gujarat nonmajor ports.
► 9 of the 12 SIRs of Gujarat lie within the immediate influence
area of Delhi - Mumbai Industrial Corridor (DMIC).
► 38% of the Dedicated Freight Corridor (DFC) passes through
Gujarat
► 18 out of 26 districts fall within the Influence Area of DMIC
► Major cities on DMIC : Ahmedabad, Vadodara, Surat
► 60% of total investment in the DMIC is likely to be in Gujarat
.
► In Sagarmala National perspective plan, over 150 projects have
been identified across in the areas of Port Modernisation, Port
connectivity, Port-led industrialization and costal community
development.
► These 150 projects need an investment of INR 4 lakh crores
► Sagarmala projects could add USD 110bn to India’s merchandise
exports
► 40 Lakh new direct jobs and 60 lakh indirect jobs would be
generated under this plan
► Gujarat is a national leader in 15 of the 25 sectors identified
under the Make in India program, and is also focusing on 6 more
sectors
► Thus, with a strong base in 21 out of the 25 sectors under Make
in India, Gujarat can take strong leadership in this prestigious
program of the Government of India
► The new policy is more focussed on key areas like infrastructure
development, simplification of labour laws and motivation of new
innovations through technology transfer.
► Assistance to micro, small and medium enterprises (MSME)
sector for upgrading technology
► It focuses to reduce pollution by promoting use of clean and
green energy as well as setting up zero-effluent discharge plants
► Assistance to new start ups
Source: http://www.gmbports.org/assets/downloads/port_sector_outline_25122014.pdf, http://currentaffairs.gktoday.in/gujarat-government-announcesindustrial-policy-2015-01201517033.html, New Industrial policy 2015, Sagarmala National perspective plan document
Page 7
Gujarat - Competitive
Advantage
State has the highest number of Operation ports and commercial cargo ports
Gujarat credited with India’s First LNG chemical port terminal at Hazira
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
“Gujarat ranked first in
ease of doing business as
per DIPP report 2015”
Gujarat ranked as Best Performing State as per NCAER State
Investment Potential Index
Strategic location: Located on the west coast of India,,
Gujarat is well connected to the major cities of the
e
world by air and sea routes.
Europe
Middle East
E
Well connected to the major cities of the world by airr
and sea routes. The state has 45 operational ports,
s,
12 domestic airports and 1 International airport in
n
addition to an extensive rail and road network.
Nearest maritime outlet to Middle East, Africa and
d
Europe
Handled 40% of national maritime trade in FY15
Gujarat is one of the leading Industrialized States in
India and the State has attracted cumulative FDI
worth US$ 12 billion from April 2000 to March 2015
Flourishing Economy: State contributes 7.2% of the
Nation’s GDP and shows leadership in many areas of
manufacturing and infrastructure sectors. Gujarat’s
SDP (State Domestic Product) at current price
registered a growth of 11% during the year 2014-15.
Source: Socio Economic review of Gujarat (2015-16)
Page 8
Africa
frica
a
Gujarat - Competitive
Advantage
Location advantage of Gujarat
Gujarat acts as a
gateway to West and
to major states across
India
►
►
►
►
►
41 minor and 1 major port are strategically located across a 1600 kms coastline, which is the
longest among the Maritime States of India
Nearest maritime outlet to Middle East, Africa and Europe
Highest number of commercial cargo ports
Acts as a gateway to northern and central India; connecting them via road, rail and air - thereby
providing immense trading opportunities
Handled 41% of national maritime trade in FY14
Robust future development of ports in Gujarat
►
►
►
►
Page 9
Port capacity enhancement: Gujarat’s non-major
ports capacity is expected to reach 864MMTPA by
FY20, which will be 52% of the total capacity
enhancement at all non-major ports of India.
Development of port cities and port based
SEZs: Government of Gujarat (GoG) and GMB
have planned to develop port cities and SEZs at
Mundra and Pipavav .
Maritime cluster and university development to
promote positive synergies between participating
entities (both port and non-port based), enhance
competitiveness and grow the local maritime
economy.
Shipbuilding parks: Gujarat contributes 89% of
the total shipbuilding orders in India (in DWT
terms). 10 shipbuilding yards are already
operational and 9 have been approved with a
proposed investment of ~INR 21 billion.
Gujarat - Competitive
Advantage
Location advantage of Mundra Port
►
Strategically situated on international maritime routes, Mundra Port on the Gulf of Kutch offers
multiple benefits for global trade. The Gulf acts as a natural shelter for the port, facilitating 24x7
safe berthing, un-berthing and vessel operations.
►
Compared to other ports on West Coast, Mundra Port enjoys logistical advantage in reaching the
North-West hinterland of India. This makes it the preferred port for the cargo hubs functioning in
the Northern and Western states and union territories of India.
Source: http://www.adaniports.com/businesses/ports-and-terminals/mundra-port
Page 10
Project Information
Site plan
Location
►
Mundra port is located at 22°85' N and 69°73’E in Kutch district, Gujarat. . It is ~50 kms from
district headquarters, Bhuj and ~360 kms from state capital, Gandhinagar.
Existing Infrastructure/Facilities
►
Support infrastructure: Tugs, Dredgers, Railway
Locomotives
►
Terminal infrastructure at the port is capable of handling
multiple vessels of different class.
►
►
Dry cargo: Grab Ship Unloaders, Shore Cranes,
Stacker-reclaimers
►
A large fleet of support equipment such as
excavators, pay loaders, dumpers, mobile cranes
and cherry pickers ensures uninterrupted and
smooth operations across the entire terminal.
Additionally, the port has a fully integrated
conveyor system for smooth and fast transit of
cargo.
►
Liquid cargo: Pipelines of varying size and type
The multipurpose terminal has multiple covered
godowns and open yards for storage of large volumes
of cargo.
►
Covered godowns capacity: 630,000MT of cargo
►
Open yards: 1.06 million sq. meters
►
Tank-farms capacity: 426,000 KL of products
ranging from Petroleum Oils, Petrochemicals,
Chemicals and Vegetable oils. The entire tank farm
is equipped with automatic radar gauging system
for accurate and real time monitoring.
Source: http://www.adaniports.com/businesses/ports-and-terminals/mundra-port
Page 11
Infrastructure
Availability
Utility
Water
►
Water supply for industry is provided by
Gujarat Water Supply and Sewerage
Board (GWSSB).
Power
►
Kutch district has 42 substations
installed with a capacity of 215 MW.
Logistics & Connectivity
Rail
Connected with the Indian Railway
network by a privately developed and
maintained 76-km rail line from Mundra
to Adipur.
The rail infrastructure is capable of
handling 130 trains per day including
double stack container trains and longhaul trains
►
►
Road
►
►
Air
►
►
Mundra port has its own airport planned
as an international air cargo hub.
Presently the air runway strip is 900
meters which is to be expanded to 4500
meters.
The nearest commercial airports are at
Bhuj (50 km) and Kandla (60 km)
Port
►
Source: http://www.adaniports.com/businesses/ports-and-terminals/mundra-port
Page 12
Mundra Port is connected to the Indian
National Highway (NH) network through
two State Highways(SH) - SH 48 via
Anjar and SH 6 via Gandhidham.
Mundra Port is well connected to
National Highway No. 8 A (Delhi-Kandla)
up to Mandvi via Mundra town.
Close to Kandla and Navlakhi ports
Project Information
Smart Components of the Port City
Future
Proofed
Sustainable
™
™
™
Intelligent
Smart Port City
Mundra SIPC will offer State-of-the-art greenfield solutions to investors and
workforce alike
Going beyond the concept of an industrial zone, the city will nuture new businesses
and residential communities in areas that have limited investments to date
Therefore, the support infrastructure is designed such that the city stands on three
pillars- namely, sustainability, Future Proofed Facilities and intelligent systems
Sustainable
Future Proofed City
Intelligent
Zero waste discharge
► 100% Recycle
► Renewable Energy
►
Disaster Management
► Water Management
►
►
Page 13
ICT Enabled
Infrastructure
► E-Governance
► Analytics
► SCADA
Project Information
Key Consideration
►
►
►
►
►
Success of the project depends on prevailing market dynamics and International trade.
Project execution depends on necessary approvals from regulators.
The cost for the project is based on assumptions & benchmarking of similar project, subject to
variation with change in any criteria.
Port development depends on the existing type of industries, conducive environment for the
investors, social infrastructure, etc.
Environmental Concerns:
► Ecologically sensitive areas: The sensitive areas could include, but not limited to,
archaeological monuments, historical places, resorts, estuaries, biosphere reserves, forest
land, areas of scientific interest, seismic zones, tribal settlements, etc. The coastal area of
Kutch has mangroves and fish breeding grounds within the influence zone of 25 kms
radius. In addition, an offshore aquatic life conservation park is proposed to be developed
in the Gulf of Kutch.
► Water bodies: These include rivers, natural lakes and swamps. No water body is found
within 1.5 kms of the proposed SIPC.
► Coastal areas: Since the proposed park is more than 0.5 kms for high tide line of the
coastal area, the stipulation made vide Notification (No. SO 14(E) dated 19/2/91) by
Government of India, Ministry of Environment & Forests, pursuant to Environmental
(Protection) Rules, 1986, does not apply.
Source: Traffic Highlights of FY 2015 -16 and the 1st quarter of FY 2016 -17, Gujarat Maritime Board.
Indian Ports Association (http://www.ipa.nic.in/index1.cshtml?lsid=60)
Key Players and Potential Collaboration Opportunities
Port Construction/ Engineering Procurement Construction (EPC) Companies
►
►
►
►
►
►
►
►
Larsen & Turbo
Lanco Infratech
Reliance Infrastructure Limited
GMR Infrastructure
Punj Lloyd
Hindustan Construction Company
GVK Power and Infrastructure Limited
Shriram EPC
Page 14
Project Financials
Project Structure & Implementation Models
►
►
►
►
►
The equity participation scenarios for the development of the industrial park are as follow:
Scenario 1: GIDC acting as facilitator by assisting the private developer and does not invest in
the project
Scenario 2: GIDC assumes the role of a developer and assumes the investment responsibility
for the entire projects
Scenario 3: GIDC enters into a joint venture and the investment responsibilities are shared
between the GIDC and the private developer
The sizing of he industrial plots and project mix are as follows:
N
o.
Components
Plot Sizes
Type of
Industry
% share
Land Area
1
Chemical Components
1 ha to 10 ha
Chemical
Components
16 %
80
2
Engineering
Component
0.5 ha to 5 ha
Engineering
Component
34%
170
3
Mineral based
component
1 ha to 10 ha
Mineral based
component
30%
150
4
General Component
0.5 ha to 10
ha
General
Component
20%
100
Project cost
►
A market study conducted across the industrial estates in the State was done to determine the
average pricing and based on this the pricing levels for Mundra Industrial Park have been
determined:
Pricing Level 1 – W.A.P Rs. 349 per sq.m
Pricing Level 1 – W.A.P Rs. 390 per sq.m
No.
Components
Project Sale
Price (Rs. per
sq. km)
No.
Components
Project Sale
Price (Rs. per
sq. km)
1
Chemical Components
400
1
Chemical Components
450
2
Engineering
Component
300
2
Engineering
Component
350
3
Mineral based
component
375
3
Mineral based
component
400
4
General Component
350
4
General Component
400
Source: Mundra Industrial Park Study
Page 15
Approvals & Incentives
Approvals required
►
►
►
►
►
Entry & Exit Procedure: Port projects are funded through a PPP model, in which private players
are invited via competitive bidding.
Setting up of Business: The facility can be operated by the private player through a built-operatetransfer (BOT) model.
Land Acquisition: The port is primarily owned by the GMB and can be rented or lease from them.
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). Additionally, pollution clearance from
Gujarat Pollution Control Board (GPCB) is also required.
Incentives
►
Ministry of Finance Department, Department of Economic affairs has introduced a scheme for
support to public private partnership (PPP) in infrastructure. G.O.I.has made provision to
financially support the viability gap to the tune of 20% of the cost of the project in the form of
capital grant from its viability gap fund.
►
The scheme is confined to Public Private Partnership projects taken by the Government or its
agencies, where the private sector is selected through open competitive public bidding..
►
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
Gujarat Maritime Board
www.gmbports.org
Gujarat Infrastructure Development Board
www.gidb.org
Industries & Mines Department
www.imd-gujarat.gov.in
Gujarat Industrial Development Corporation
www.gidc.gov.in
Office of Industries Commissioner
www.ic.gujarat.gov.in
Industrial Extension Bureau
www.indextb.com
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.
‘SAGAR BHAVAN’ Sector 10-A,
Gandhinagar - 382010. Gujarat (India)
Phone: +91 79 23238346 +91 79 23238347
Fax: +91 79 23234703
Email: [email protected]
www.gmbports.org