Andhra Pradesh Industrial Infrastructure Corporation Limited DPR for Diversion of Forest Lands for Establishment of Industrial Parks at Dubacherla Forest Block in West Godavari District, Andhra Pradesh

FINAL DETAILED PROJECT REPORT August 2015

Prepared By

L&T INFRASTRUCTURE ENGINEERING LIMITED

B1152201 RP008, Rev.0

L&T Infrastructure Engineering Ltd. Client: Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) Parisramabhavanam, 5th Floor, Fateh Maidan Road, Hyderabad – 500 004 Project: DPR for Diversion of Forest Lands for Project No.: Establishment of Industrial Parks in W.G B1152201 District, AP Title: Final Detailed Project Report for Document No.: Rev.: Dubaclerla Forest Block RP008 0

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Notes:

Revision Details:

LPN 0 14.08.2015 First Submission SJV TKSS KRM KRM Init. Sign. Init. Sign. Init. Sign. Rev. Date Details Prepared Checked Approved Table of Contents

DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

TABLE OF CONTENTS 1 Introduction ...... 1 1.1 Preamble ...... 1 1.2 Data Collection ...... 2 1.3 Site Visit and Meetings ...... 2 1.4 Structure of the Report ...... 2 1.5 Acknowledgement ...... 2 2 Site Appreciation ...... 3 2.1 Project Site ...... 3 2.2 Details of Forest ...... 3 2.2.1 Site Map ...... 3 2.2.2 Rehabilitation and Resettlement (R&R) Issues ...... 4 2.2.3 Flora and Fauna ...... 4 2.3 Existing Habitations around Project Site ...... 5 2.4 Demographic Pattern ...... 5 2.5 Regional Connectivity ...... 5 2.5.1 Road ...... 6 2.5.2 Rail ...... 6 2.5.3 Airport and Port Connectivity ...... 7 2.6 Topography ...... 7 2.7 Soil Profile ...... 7 2.8 Climate and Rainfall ...... 7 2.9 Infrastructure Availability ...... 8 2.9.1 Water ...... 8 2.10 Environmental Considerations ...... 8 3 Market Study and Demand Assessment ...... 9 3.1 Preamble ...... 9 3.2 Location Attributes ...... 9 3.2.1 Information sources ...... 10 3.3 Biotechnology Parks Scenario ...... 10 3.3.1 Top 25 Biotechnology companies in India Based on Revenue ...... 12 3.3.2 Overview of Biotechnology Sector ...... 12 3.4 Activity Mix to be Planned Keeping Country Strength in View ...... 13 3.4.1 Investments in the Indian Bio Technology Sector ...... 13 3.4.2 New Initiatives ...... 14 3.4.3 National Guidelines for Stem Cell Research ...... 14 3.5 Projected Exports and Investment (2015-2030) in Focus Sectors ...... 15 3.6 Evaluation of Target Sector(s) for Proposed Site ...... 16 3.6.1 State Support ...... 16 3.6.2 Infrastructure Facilities ...... 17 3.6.3 Short List of Sectors ...... 18 3.6.4 Market size ...... 18 3.6.5 Bio Pharma ...... 18 3.6.6 Vaccines ...... 18 3.6.7 Bio Generics ...... 18 3.6.8 Contract Services ...... 19 3.6.9 Industrial Enzymes ...... 19 3.7 Estimated Demand for Space of Focus Sectors ...... 19 3.8 Expected Impact of Focused Sector ...... 19 3.9 Estimated Revenue ...... 20 4 Site Master Plan ...... 21 4.1 Preamble ...... 21 4.2 Planning Concepts ...... 21 4.2.1 Consideration ...... 21 4.2.2 Product Mix ...... 22 4.3 Site Master Plan ...... 22

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4.3.1 Proposed Entry/Exit ...... 22 4.3.2 Circulation and Road Hierarchy ...... 23 4.3.3 Green / Open Areas ...... 23 4.3.4 Infrastructure Utilities / Common Amenities / Industry Related Facilities ...... 23 4.4 Housing ...... 24 5 Infrastructure Assessment and Cost Estimation ...... 25 5.1 Infrastructure Demand Assessment ...... 25 5.1.1 Internal Road Network ...... 25 5.1.2 Power Supply ...... 25 5.1.3 Water Supply ...... 26 5.1.4 Wastewater Management ...... 26 5.1.5 Solid Waste Management...... 26 5.1.6 Storm Water Management...... 26 5.2 Block Cost Estimates ...... 26 6 Cost Benefit Analysis ...... 28 6.1 Introduction ...... 28 6.2 Overall Approach & Methodology ...... 28 6.3 Revenue generation ...... 28 6.4 Cost incurred ...... 28 6.4.1 Project Investment ...... 28 6.4.2 Land Cost: ...... 28 6.4.3 Cost on Afforestation ...... 28 6.4.4 Foregone revenue from the forest land ...... 28 6.4.5 Interest ...... 28 6.4.6 Depreciation: ...... 29 6.5 Details of Cost and Benefit ...... 29 6.6 Conclusion ...... 29 7 Financial Analysis ...... 30 7.1 Introduction ...... 30 7.2 Objective ...... 30 7.3 Overall Approach & Methodology ...... 30 7.4 Key Assumptions in Financial Modelling ...... 30 7.5 Flexibility in Financial Model ...... 31 7.6 Construction Period and Project Life ...... 31 7.7 Project Cost...... 31 7.8 Financing Structure ...... 32 7.8.1 Funding Structure for the project ...... 33 7.8.2 Financial Instruments & Cost of Funding ...... 33 7.9 Depreciation ...... 34 7.10 Operating Expenses ...... 34 7.10.1 Operation and Maintenance Expenses ...... 34 7.10.2 Administrative Expenses ...... 35 7.10.3 Insurance expenses ...... 35 7.11 Revenue Estimates ...... 35 7.12 Income Tax Calculations ...... 35 7.13 Financial Analysis - Base Case Scenario ...... 35 7.13.1 Key Parameters ...... 35 7.14 Observations ...... 36 7.15 Conclusion ...... 36 8 Conclusion ...... 37

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LIST OF FIGURES Figure 1-1: VCIC Location ...... 1 Figure 2-1: Location of Dubacherla Site ...... 3 Figure 2-2: Photographs at Site ...... 4 Figure 2-3: Existing Settlements within 2 km from Project Site ...... 5 Figure 2-4: Road Rail Connectivity...... 6 Figure 2-5: Seaports and Airports Distances from Project Site ...... 7 Figure 4-1: Planning Concepts ...... 21 Figure 4-2: Proposed Entry/ Exit Points ...... 23 Figure 5-1: Methodology for Infrastructure Assessment ...... 25

LIST OF TABLES Table 2-1: Environmental Sensitivity around the Project ...... 8 Table 4-1: Proposed Land Use Break up for Dubacherla Industrial Park (for Two Phases) ...... 22 Table 5-1: Block Cost Estimates ...... 27 Table 7-1 Project Development Schedule ...... 31 Table 7-2 : Capital Cost of the Project (2015 prices in Rs Mn) ...... 32 Table 7-3 : Different phases of an infrastructure project ...... 33 Table 7-4 : Means of Finance ...... 33 Table 7-5 : Details on Debt ...... 34 Table 7-6 : Depreciation Rates ...... 34 Table 7-7: Revenue Details ...... 35 Table 7-8 : Key Input Parameters – Base Case Scenario ...... 36 Table 7-9 : Key results – Base Case Scenario ...... 36

LIST OF DRAWINGS

FD0201: Boundary of Dubacherla Forest Block on 1:50,000 SOI Topo Sheet FD0401: Site Master Plan FD0402: Circulation Plan FD0403: Typical Cross Sections Rigid 45m & 30m RoWs FD0404: Typical Cross Sections Rigid 24m & 12m RoWs FD0405: Green Area and Green Belt Layout FD0406: Infrastructure Utilities / Common Amenities

LIST OF ANNEXURES Annexure 1.1: Form A for seeking prior approval under section 2 of the proposals by the state governments and other authorities Annexure 6.1: Annual Benefit from the Project Annexure 7.1: Interest During Construction (IDC) Annexure 7.2: Debt Service Coverage Ratio (DSCR) Annexure 7.3: Profitability Statement Annexure 7.4: Cash Flow Statement Annexure 7.5: Balance Sheet Annexure 7.6: IRR Calculation

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LIST OF ABBREVIATION AND ACRONYMS

ADB : Asian Development Bank APIIC : Andhra Pradesh Industrial Infrastructure Corporation Limited APPCB : Andhra Pradesh Pollution Control Board BAS : Building Automation System CAGR : Compound Aggregate Growth Rate CETP : Common Effluent Treatment Plant DGPS : Differential Global Positioning System FIRR : Financial Internal Rate of Return GBPD : Green Building Performance Disclosure GoAP : Government of Andhra Pradesh HVAC : heating, ventilation, air-conditioning IRR : Internal Rate of Return KLD : Kilolitres per Day km : Kilometre Kmph : Kilometre per hour L&TIEL : Larsen & Toubro Infrastructure Engineering Limited MLD : Million Litres per Day mm Millimetre Mn : Million MoEF : Ministry of Environment and Forests NCAER : National Council of Applied Economic Research NH : National Highway NHAI : National Highway Authority of India R&R : Rehabilitation and Resettlement RoW : Right of Way Sq. f : Square Feet Sq. m : Square Meter STP : Sewage Treatment Plant TPD : Tonnes Per Day VCIC : Vizag – Chennai Industrial Corridor VK-PCPIR : Visakhapatnam Kakinada Petroleum Chemical Petro-chemical Investment Region WACC : Weighted Average Cost of Capital

Table of Contents Page iv

1 Introduction

DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

1 Introduction

1.1 Preamble Government of Andhra Pradesh (GoAP) has proposed to develop Vizag – Chennai Industrial Corridor (VCIC) and seeking the financial assistance of Asian Development Bank (ADB). VCIC is a key segment of the East Coast Economic Corridor and also India’s first coastal economic corridor. VCIC is aimed at fulfilling the objectives of the Government of India, Make in India Policy which aimed to promote manufacturing activities. Following Figure 1-1 shows the VCIC Location.

Figure 1-1: VCIC Location The initial studies carried out for VCIC projected tremendous growth for Andhra Pradesh in the next 20 years. Once VCIC becomes functional, the manufacturing output would reach Rs 3,000 billion by 2025 and Rs. 7,825 billion by 2035. The proposed corridor is likely to have a strong influence on the industrial activities in all 13 districts of Andhra Pradesh and therefore there is a need for large tracts of industrial land to keep pace with the projected industrialisation. West Godavari is one of the key districts coming within the immediate influence of the VCIC and has all the potential to largely get influenced with the proposed VCIC. GoAP has embarked on major initiative of positioning West Godavari District as the central hub for various sunrise sectors in an endeavour to attract investments from National and International Players across the globe. The district is known as Rice Granary of India and therefore GoAP proposed to promote the industrialisation in non agricultural lands. In this regard, GoAP identified around 16258 acres of Reserve Forest Lands located at Ungutur, Nallajerla, Dubacherla, IS Jagannadha Puram, Bhogolu and Ramasingavaram within the district for the purpose of industrialisation.

1 Introduction Page 1 DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

In order to divert the identified forest lands for Industrial use, it is mandatory to submit an application to Ministry of Environment and Forests (MoEF) along with a Detailed Project Report. Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) is a wholly owned subsidiary of Government of Andhra Pradesh (GoAP) has been entrusted the task of pursuing with MoEF to procure the forest lands and develop sector specific Industrial Parks as a part of VCIC development. APIIC has appointed L&T Infrastructure Engineering Limited (L&TIEL) as Consultants to prepare the Detailed Project Report and also Application to MoEF for all the six sites. Refer to Annexure 1.1 for the Form A for seeking prior approval under section 2 of the proposals by the state governments and other authorities.

1.2 Data Collection The project area maps, DGPS survey details, flora and fauna , afforestation costs, details of existing and proposed industries were collected from West Godavari Collectorate, Forest Department and APIIC.

1.3 Site Visit and Meetings L&TIEL Team carried out a detailed visit of the Dubacherla Reserved Forest Block on 21st May 2015. APIIC officials and DGPS survey agencies accompanied the team for the visit. Further L&TIEL had also attended the weekly review meetings scheduled at of office of the District Collector.

1.4 Structure of the Report The present report, Final Detailed Project Report is prepared based on the information collected from District Collectorate, APIIC, information available on public domain and internet. Prior to this report, L&TIEL delivered two reports, Preliminary Report and Draft Project Report and the suggestions given on the earlier reports were accordingly considered in the present report. The report is structured in the following pattern.  Chapter 1 – Introduction  Chapter 2 – Site Appreciation  Chapter 3 – Market Study and Demand Assessment  Chapter 4 – Site Master Plan  Chapter 5 – Infrastructure Assessment and Cost Estimation  Chapter 6 – Cost Benefit Analysis  Chapter 7 – Financial Analysis  Chapter 8 – Conclusion

1.5 Acknowledgement L&TIEL sincerely thanks the District Collector and Magistrate for all the courtesy extended to the project team. L&TIEL also acknowledges the support provided by the officers of the Forest Department, Industries Department and APIIC.

1 Introduction Page 2 2 Site Appreciation

DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

2 Site Appreciation

2.1 Project Site The project site, covering an area of about 2,819 acres (as per the details provided by APIIC and DGPS survey conducted by Geo Con Surveys) is located in Nallajerla Mandal. The site is connected to NH-5 (AH-45) on the South, SH-42 on the East, SH-446 on the West. The following Figure 2-1 shows the location of site.

Figure 2-1: Location of Dubacherla Site

2.2 Details of Forest

2.2.1 Site Map The proposed site comes under Dubacherla Block as per the forest department. A map showing the forest land and boundary of adjoining forest on 1:50,000 scale. A map showing the Dubacherla Block with boundaries is included as Figure FD0201. Pictorial illustrations of the project site are given as Figure 2-2.

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Total Area Acres Dubacherla Forest Block 2819.08

Geographic Coordinate System - WGS 84 Datum (UTM Zone 44) LEGEND &T Ltd.

L&T-Ramboll Limited

Engineering

Engineers

L&T Infra Engineering Infrastructure Consulting DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

Figure 2-2: Photographs at Site

2.2.2 Rehabilitation and Resettlement (R&R) Issues The entire land is under with the Department of Forest and as informed by the authorities, the land is free from Rehabilitation and Resettlement issues.

2.2.3 Flora and Fauna Data from the forest department on the floristic composition in Dubacherla Block includes the following species.  Memecylon edule (Alli)  Zizyphus xylopyrus (Gotti)  Carissa spinarum (Vaka)  Randia dumetorum (Manga chettu), Mimusops hexandra (Pala)  Azadirachta indica (Vepa)  Dodonaea viscose (Bandedu)  Webera corymbosa (Papidi)  Diospyros sylvatica (Tellagatha)  Maba buxifolia (Tella Alli)  Erythroxylum monogynum (Devadaru) As per the information from the department, there are no endangered flora and fauna reported in the Dubacherla Forest block.

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2.3 Existing Habitations around Project Site The forest area is surrounded by plantations. The following Figure 2-3 shows the settlements located within 2 km from the project site.

Figure 2-3: Existing Settlements within 2 km from Project Site

2.4 Demographic Pattern The nearest urban centre to the sites are Tadepalligudem, Jangareddigudem and Eluru which is the district head quarters. As per provisional data of 2011 census, Eluru urban agglomeration had a population of 515,000, out of which males were 260,000 and females were 255,000. The literacy rate was 75.98 per cent. Eluru Municipal Corporation had a population of 327,533. The town has primary schools, upper primary schools and high schools. With regard to health and medical facilities, the town has primary health centres, hospitals and dispensaries. Tadepalligudem town had a population of 103,577. The total population constitute 51,176 males and 52,401 females. It is the agricultural commercial hub of West Godavari district which is renowned as the ‘Annapurna of Andhra Pradesh’. The town has primary schools, upper primary schools and high schools. With regard to health and medical facilities, the town has primary health centres, hospitals and dispensaries.

2.5 Regional Connectivity The proposed site is strategically placed in terms of connectivity (road, rail, air and sea) to the hinterland markets. The regional connectivity in terms of Road and rail is shown in Figure 2-4.

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Figure 2-4: Road Rail Connectivity

2.5.1 Road The project site is well connected to the other parts of India through NH-5 (AH-45) at a distance of 26km south of site.

2.5.2 Rail Chennai – Kolkata Broad Gauge Line is located around 18 km south of the project site and Bhimadole is the nearest station.

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2.5.3 Airport and Port Connectivity The regional connectivity in terms of Ports & Airports is shown in Figure 2-5.

Figure 2-5: Seaports and Airports Distances from Project Site The nearest port as on date is Kakinada Port (93km). The site has also the advantages of the proposed Narasapuram Port (78km) and Machilipatnam Port (85km) and both are almost equidistant. Considering its proximity to the existing and proposed ports, the site has all the advantages of becoming a major multimodal major logistics hub within the VCIC.

2.6 Topography The overall project site relatively slopes from west to east towards the coast. The site appears to be plain.

2.7 Soil Profile The Soils in the district are made up of Alluvial, Black Regur and Red Ferruginous besides a small belt of arenaceous sandy soils along coastal belt.

2.8 Climate and Rainfall The climate is moderate both in winter and summer seasons in delta area. The uplands areas in the district witness severe summer. The normal maximum and minimum temperatures recorded in the District are 48°C to 19°C respectively.

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The District receives its rainfall predominantly from South West Monsoon (785.6mm) as well and also from North East monsoon (254.6mm), whose normal rainfall is 785.6 mm and 254.6 mm respectively. The receipt of actual rainfall during 2005 - 2006 from South West monsoon is 9120.3mm, while 288.7 mm from North East monsoon.

2.9 Infrastructure Availability

2.9.1 Water Polavaram Right Bank canal is located in the close proximity and once operational can be good water source.

2.10 Environmental Considerations Table 2-1: Environmental Sensitivity around the Project

S. Aerial Distance Areas Name / Identity No (within 15 km) 1 Areas protected under international conventions, Nil Nil national or local legislation for their ecological, landscape, cultural or other related value

2 Areas which are important or sensitive for Nil Nil ecological reasons - Wetlands, watercourses or other water bodies, coastal zone, biospheres, mountains, forests 3 Areas used by protected, important or sensitive Nil Nil species of flora or fauna for breeding, nesting, foraging, resting, over wintering, migration 4 State, National Highways SH-6 & SH-44 6km & 14 km 5 Defence installations 6 Routes or facilities used by the public for access SH-44 14km, west and to recreation or other tourist, pilgrim areas abutting boundary 7 Inland, coastal, marine or underground waters Nil Nil 8 Densely populated or built-up area Jangareddyguda 12km, North 9 Areas occupied by sensitive man-made land Primary Health Several PHCs in uses (hospitals, schools, places of worship, Centre different villages community facilities) The activities proposed in the IP are mostly green and orange category type of industries.

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3 Market Study and Demand Assessment1

3.1 Preamble West Godavari District with abundant natural, mineral and agricultural resources and better connectivity to the New Capital of Andhra Pradesh would be positioned in the state of Andhra Pradesh as “the happening district”. With right initiatives coming from the government, such as VCIC, the investment climate will soon transform the District as the Destination Andhra Pradesh. There are five industrial estates in the district with a total land area of 114.70 acres which are owned by APIIC. The estates cater to MSME type of industries. The district is extremely fertile, getting water abundantly throughout the Cotton barrage built on the Godavari River at Dhavaleswaram. The barrage channels water through two canals. Topographically the district is divided into the Delta and the uplands. In the Delta, aquaculture, coconut, lemon and rice are cultivated. The district is popularly known as the Granary of India since about 50% of the state's rice production comes from the district. In the uplands, oil palm, sugarcane, corn, mango, banana and other fruits as well as tobacco and cotton are produced. In the coastal belt of the district, prawns and fish is exported to Japan and the United States.

3.2 Location Attributes  Good Connectivity – rail, road and air.  Adequate availability of water and power  Untapped potential for the development of the sector  Availability of required free hold land  Proximity to Housing and Educational Institutions at Eluru, Vijayawada and Rajahmundry  Huge agricultural base. The proposed park will focus on non-therapeutic vaccines, Contract Research Services, Bio similar products, Bio Pharma and Bio Informatics. It is proposed to develop a Bio technology hub at Dubacherla which would attract technical and scientific talent across the nation and would be modelled as the destination for global companies’ The targeted land for the hub is estimated at 500 acres with associated utilities and infrastructure as well as incubation centres, Lab Modules, and support R&D Labs. Hence it is proposed to develop 500 acres of land in the Phase I and the balance land can be utilised for expansion/R&D Activities and also for social infrastructure like schools, healthcare, recreation and common utilities.

1 Market study and demand assessment is based on available data on public domain.

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The land is located in Dubacherla village of Nallajerla Mandal, in upland area of the District and has adequate water resources.

3.2.1 Information sources The sector has been evaluated based on the following reports available on the public domain  UK Trade & Investment Sector briefing: Biotechnology and Pharmaceutical opportunities in India  Report commissioned by Department of Information Technology (IT), Biotechnology (BT), and Science and Technology (S&T), Government of Karnataka February, 2014  Ebtc European Business and technology centre; Indian Biotechnology sector - overview  Singapore Biopolis: Bare Life in the City State by Professor Catherine Waldby dated April 2008 The information provided in the above reports have been reviewed and produced in the following sections.

3.3 Biotechnology Parks Scenario Key Biotech clusters in India Bangalore, in Karnataka is the Biotech capital for India. Bangalore and Karnataka jointly contribute 27% to the revenue of the sector. The other key clusters include Mumbai and Ahmedabad in the West (Maharashtra and Gujarat respectively), Hyderabad (Andhra Pradesh) and Chennai in the South and the area in and around New Delhi in the North. The Western belt houses companies that are large pharmaceuticals with a prominent manufacturing and R&D base, who have active interest in pursuing the manufacture of bio generics. Hyderabad has several vaccine manufacturers and other large biotech companies involved in research. The regions in and around New Delhi house several key research centres and universities that are involved in research Karnataka State Karnataka is the bio tech hub of India and nearly 200 bio tech companies are housed in Bengaluru only. Some of major key players are Astra Zeneca, Biocon, Strides Arcolab, Metahelix Life Sciences, and Advinus Therapeutics. The Bio tech park was developed on an extent of about Ac 200. Bengaluru has an efficient Industry - Institution linkages such as IISC Bengaluru, University of Agricultural Sciences etc. The biotech hub predominantly houses units engaged in contract research space and Stem Cell areas. TamilNadu Chennai Tamilnadu is the first state to have introduced a separate Bio Tech policy. Tamil Nadu presents an attractive market for medical biotechnology products as it accounts for about 11% of the pharmaceutical market in the country. The Government of Tamil Nadu has also announced the establishment of Biotechnology Enterprise Zones (Bio-Valleys) along the lines of Silicon Valley to exploit the bio resources of the State. Chennai has some of the top pharma companies like Orchid Pharma, Shasun Pharma and Bafna Pharmaceuticals and few Biotech companies like ABL Biotech and Proalgen Biotech. Tamil Nadu also has research centres like Centre for Biotechnology, Anna University Centre for Plant Molecular Biology, Tamil Nadu Agricultural University, Coimbatore, and Centre for Research in Medical Entomology, Madurai, Department of Biotechnology, School of

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Bioengineering, SRM University, Rajiv Gandhi Centre for Biotechnology, School of Biotechnology, Madurai Kamaraj University, Western Region Maharashtra The state accounts for 40% of country' pharmaceuticals output. It has strong research capabilities and accounts for over 30% of country‘s patents. It has a presence of reputed companies focusing on the biotech sector including Wockhardt, Abbott Pharmaceuticals, Cipla and Lupin, among others and state is setting up biotech parks at Hinjewadi, near Pune. Major opportunities have emerged in the pharmaceutical sector, primarily in the areas of contract research, contract manufacturing and clinical trials. State boasts of Low costs, strong manufacturing base, well developed laboratory and R&D infrastructure, a strong resource pool. The backward linkages with the well-developed chemicals and petrochemicals sector are an added advantage. Gujarat accounts for 28% of national pharmaceutical production. First state to manufacture APIs and finished dosage forms. It is a home to 900 allopathic manufacturing units and 2,122 contract manufacturing units. Gujarat accounts for exports worth US$ 1.4 billion. It has number of clinical research organizations in India and over 100 companies with WHO- compliant manufacturing units, academic and research institutions providing over 4,600 technically-skilled manpower per annum. India’s largest biotech park of 700 acres being developed at Savli, Vadodara. Key players are Zydus Cadila, Torrent Pharma, Sun Pharma, Intas Pharma, Alembic, Dishman Pharma. Mumbai is home to the two major pharmaceutical associations including Indian Drug Manufacturers Association (IDMA) and organisation of Pharmaceutical Producers of India (OPPI). Andhra Pradesh Genome Valley at Hyderabad The development of Genome Valley at Hyderabad was harbinger of the development of biotech hub in the erstwhile Andhra Pradesh State. The theme was driven by the presence of large number of R&D Institutions like IICT, CCMB, ICRISAT which triggered the evolution of ICICI Knowledge Park, Alexandria Knowledge Park (formerly SP BIOTECH) and now houses more than 40 manufacturing and research institutes. It is a natural cluster for biotech research, training, collaboration and manufacturing activities with some of India's leading biotech institutions and companies located here. The Genome Valley encompasses established biotech parks – the Alexandria Knowledge Park (AKP) and ICICI Knowledge Park (IKP). The IKP Knowledge Park spread over 200 acres in Shameerpet-Turkapally, is a joint initiative of ICICI Bank and the state government. With five "innovation corridors", IKP is touted as "the first of its kind knowledge-nurturing centre for Indian companies and a knowledge gateway for multinational companies". Launched by ICICI Bank Ltd in partnership with the erstwhile Government of Andhra Pradesh, the ICICI Knowledge Park is committed to facilitating business-driven research and development. With full occupancy in the first two phases, the ICICI Knowledge Park is in the process of developing the third phase. US Pharmacopeia has set up a facility to help the local industry to meet the stringent requirements of FDA of USA.

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The Alexandria Knowledge Park spread over 300 acres in Shameerpet-Turkapally, is developed in a Public Private Partnership mode. The Park has developed as a cluster of life science companies - from large multinationals to start-ups. It accommodates advance research and development infrastructure in multiple formats like multi-tenanted research buildings, incubation facilities, build-to-suit blocks and industrial plots. The Park has been developed in two phases. Phase I covers approximately 145 acres and Phase II covers approximately 162 acres of land. The park has roped in many global majors to set up their first India-based R&D units. The Alexandria Knowledge Park (AKP), has been given EOU status and it is expecting to get the status of "Special Economic Zone", which will bring in abundant benefits to the park. The Dr. Reddy’s Institute of Life Sciences was conceived in the context of globalization, to foster research competence in India and to bridge the gap between academic research and the pharmaceutical & biotechnology industries. The institute was incorporated as a non-profit entity under Section 25 of the Indian companies act, facilitating operational autonomy. The institute was inaugurated as a public-private partnership research institute on 29th January 2007, a culmination of the efforts and initiative of the Andhra Pradesh state government, Dr. Reddy’s laboratories and the University of Hyderabad. The institute is located in the southeast corner of the campus of the University, one of the largest and greenest campuses in India. GVK Biosciences (GVK BIO) is one of Asia’s leading Discovery Research and Development organizations. GVK BIO provides a broad spectrum of services, across the R&D and manufacturing value chain with a focus on speed and quality. GVK BIO capabilities include Integrated Programs, Discovery Services, Clinical Development, Contract Manufacturing, Formulations and Informatics. The Biotech Hubs are largely dependent on Industry-Institution Interaction and largely driven by R&D. Hence development of Incubator facilities at each hub is very much essential.

3.3.1 Top 25 Biotechnology companies in India Based on Revenue Serum Institute of India, Biocon, Panacea Biotech, Nuziveedu Seeds, Rasi Seeds, Novo Nordisk , Novozymes South Asia, Indian Immunologicals, Mahyco, Syngene International, Jubilant Life Science, Shantha Biotech (Sanofi), Bharat Serum, Eli Lilly, Bharat Biotech, Themis Medicare, Aventis (Sanofi), Haffkine BioPharma, Rossari Biotech, GSK Pharma, Ankur Seed,s Advanced Enzymes, Ocimum Bio Solutions, Nath Seeds, Concord Biotech, etc.

3.3.2 Overview of Biotechnology Sector The biotechnology sector is one of the country’s major sectors. In 2015, the biotechnology sector is estimated at around $9 billion, and estimated to increase to $15 billion by 2020. India is amongst the top 12 biotech destinations in the world and ranks second in Asia, after China. It is also the largest producer of the recombinant Hepatitis B vaccine in the world. The Biotech industry in India has been able to successfully position itself to capitalize on the unfolding global biologics opportunity by attracting talent with advanced technical skill-sets. The biotechnology sector of India is highly innovative and is on a high growth trajectory. The sector, with its immense growth potential, will continue to play a more significant role as an innovative manufacturing hub. The sector is one of the most significant sectors in enhancing India's global profile as well as contributing to the growth of the economy. This sector is directly or indirectly related to the health as well as the agricultural sector of India.

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India had recently overtaken Canada to emerge as the fourth largest country to grow biotech or Genetically Modified (GM) crops, as farmers here planted Bt cotton in about 11 million hectares. The global acreages under GM crops increased to 175.2 million hectares in 2013, about five million hectares more than the previous year. India also has no dearth of talent in this sector, as a number of institutions, both government and autonomous, provide the necessary opportunities for the student seeking to obtain a degree in this sector. Also, the GoI has provided adequate scope to this sector by providing facilities for R&D in the field of biotechnology. Strengths of the Indian biotechnology sector  Large reservoir of scientific human resource, that is, a strong pool of scientists and engineers  Cost effective manufacturing capabilities  Number of national research laboratories employing thousands of scientists  Centres of academic excellence in biosciences; several medical colleges, educational and training institutes offering degrees and diplomas in biotechnology, bio-informatics and biological sciences  Presence of a well-defined and vibrant drugs and pharmaceutical industry  Rich Biodiversity: India's human gene pools offer an exciting opportunity for genomics;  Fast developing clinical capabilities with the country becoming a popular destination for clinical trial, contract research and manufacturing activities Weaknesses of the Indian biotechnology sector  Lack of venture capital  Relatively low R&D expenditure by industry  Missing link between research and commercialization.

3.4 Activity Mix to be Planned Keeping Country Strength in View

3.4.1 Investments in the Indian Bio Technology Sector India's biotech sector has attracted significant amount of attention over the past two decades. Several global companies have aggressively joined hands with Indian companies due to India's strong generic biotechnology potential. Some of the recent investments in this sector are as follows:  French pharmaceutical company Sanofi SA, which acquired Shantha Biotechnics in 2009 through its vaccines division, Sanofi Pasteur SA, is investing Rs. 460 crore (US$ 73.59 million) to build the facility that, at full capacity, will produce 60 million Insuman cartridges annually, company executives said.  Hyderabad headquartered vaccine manufacturer Indian Immunological Ltd (IIL), part of the National Dairy Development Board, is setting up a new vaccine manufacturing facility in Pondicherry involving an investment of Rs. 300 crore (US$ 47.99 million). This is the fourth facility for Indian Immunologicals, which currently has two facilities in Hyderabad and one in Ooty.  Kerala-based Arjuna Natural Extracts Ltd, has received a patent in the United States on BCM-95, a turmeric extract formulation that could be used to target Alzheimer’s disease. Explaining the application patent, Mr Benny Antony, Joint Managing Director of the company said, the product is a re-blend of two ingredients in turmeric, but in a ratio that is not seen in naturally occurring turmeric. It is a reblend of curcuminoid and an essential oil of turmeric, he said.

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 Bristol-Myers Squibb and Syngene International, the contract research subsidiary of Biocon, have announced a five-year extension of their drug discovery and development collaboration in India.  The Bhabha Atomic Research Centre (BARC) through its Centre for Incubation of Technologies (BARCIT) has signed a memorandum of understanding (MoU) with M/s Veena Industries, Nagpur, for incubation of technology for biodegradable and edible films for food and pharmaceuticals packaging.  Cancer Genetics Inc (CGI) has acquired Hyderabad-based genomics services provider BioServe India for US$ 1.9 million. This will enable CGI to better position themselves globally in personalised cancer care.

3.4.2 New Initiatives A Network of Technology Centres and promotion of start-ups by SIDBI are among few of the steps taken by the government to promote innovation and entrepreneurship in agro industry proposed by the MSME Ministry in a new scheme. The scheme follows the announcement of a Rs 200 crore (US$ 31.99 million) fund by Finance Minister Mr. Arun Jaitley in his Budget speech for promoting innovation and entrepreneurship in agro industry. The Government of India has taken a lot of initiatives to improve the biotechnology sector in the country as well as offer enough scope for research in this field. The Department of Biotechnology (DBT) along with other government funded institutions such as National Biotechnology Board (NBTB) and many other autonomous bodies representing the biotechnology sector, are actively working together so as to project India as a global hub for biotech research and business excellence. Some of the recent major initiatives are as follows:  CSIR-Institute of Himalayan Bioresource Technology (CSIR-IHBT) has signed an MoU with Phyto Biotech to formalise transfer of technology, for production of unique auto cleavable Super Oxide Dismutase (SOD) enzyme, used in cosmetic, food and pharmaceutical industries for end applications.  DBT has announced the Indo-Australian Career Boosting Gold Fellowships under which it will support the researchers to undertake a collaborative research project at a leading science institute or university in Australia for a period of up to 24 months.  DBT has allocated Rs 4.6 crore to the University of Agricultural Sciences (UAS) to support a national multi-institutional project titled 'A value chain on jackfruit and its products'.  Under the 12th Five Year Plan, the Government of India plans to strengthen regulatory science and infrastructure, which involves setting up of Biotechnology Regulatory Authority of India (BRAI) and a central agency for regulatory testing and certification laboratories.  Foreign Direct Investment (FDI) up to 100% is permitted through the automatic route for Greenfield and through the government route for brownfield, for pharmaceuticals.

3.4.3 National Guidelines for Stem Cell Research The guidelines have been laid down to ensure that research with human stem cells is conducted in a responsible and ethical manner and complies with all regulatory requirements pertaining to biomedical research in general and of stem cell research in particular. These guidelines apply to all stakeholders including individual researchers, organizations, sponsors, oversight/regulatory committees and any other associated with both basic and clinical research on all types of human stem cells and their derivatives.

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The Guidelines on Similar Biologics prepared by the Central Drugs Standard Control Organization (CDSCO) and the Department of Biotechnology (DBT) lay down the regulatory pathway for a biologic claiming to be similar to an already authorized reference biologic. The guidelines address the regulatory pathway regarding the manufacturing process and quality aspects for similar biologics. These guidelines also address the pre-market regulatory requirements including a comparability exercise for quality, preclinical and clinical studies and post-market regulatory requirements for similar biologics.

3.5 Projected Exports and Investment (2015-2030) in Focus Sectors The Indian Biotech industry is expected to grow leaps and bounds with a CAGR of around 30% year or year and it is expected to touch US$ 100 billion by 2025. The share of Agri Biotech products along with machinery manufacturing, Bio Informatics, Contract Research Services as well as Clinical Data Management is expected to garner a share of around 25% by 2025. Considering the growth of the sector and also opportunities that are available, it is estimated that the Bio Tech Hub would attract an investment of about US$5 billion in the next decade and aims at a turnover of US$25 billion thereto. This apart, a lateral investment in the upgradation of existing R&D Institutions is also envisaged which is targeted at about US$250 million. The changing pattern of life style and higher levels of income and awareness /availability of health care throws open demand for a large segment of products as well as services. The field of Contract Research Services, normally operates as collaborative effort with local and international players to product development in bio pharmaceuticals, whereas Clinical Data Management and Bio Informatics opens up for KPO type of arrangements. The MNC bio and pharma industries rely much on the data analytics of Indian IT professionals with regard to access to diagnostic studies and patients’ medical history. The Contract Research Services, Bio Informatics and Clinical Data Management are high export earners for the domestic companies.

3.5.1.1 Major Players South India, with biotech hubs such as Bangalore in Karnataka and Hyderabad in Andhra Pradesh, represents the biggest hub for biotech companies. The number of biotech companies in South India was 172 in 2010. In fact, almost half of the biotechnology companies in India are based out of the state of Karnataka. Apart from Karnataka, states such as Andhra Pradesh, Maharashtra, Tamil Nadu and Kerala have been proactive in supporting the biotech sector by establishing world-class biotech parks and clusters. A total of 350 companies operate in the biotechnology sector in India. Some of the successful biotechnology companies in India are Biocon, Serum Institute of India, Panacea Biotech, Panacea Biotech, Nuziveedu Seeds, Reliance Life Sciences, Quintiles, Rasi Seeds, Novo Nordisk, Shantha Biotechnics, Venkateshwara Hatcheries, Indian Immunological, Trans Asia Bio medics and Mahyco. Foreign players are also establishing their presence in the Indian biotech space. For instance, Denmark-based global biotech company Novozymes has partnered with

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Bangalore-based biotech company Sea6 Energy in January 2012 for exploratory research and to jointly develop a process for the production of biofuels from seaweed. Novozymes has planned to provide research, develop and manufacture enzymes for the conversion process, while Sea6 Energy will contribute its offshore seaweed cultivation technology. Lonza, a global leader in the production and support of pharmaceutical and biotech products, is planning to set up a manufacturing base in India at an investment of USD 150 million at Hyderabad. In a similar move, India-based Clinigene International, a subsidiary of Biocon, and Seattle based Pacific Biomarkers Inc. (PBI) announced a collaborative agreement in January 2012 to address the specialty biomarker and high-end clinical trial laboratory needs of the global pharmaceutical and biotechnology industry. Clinigene offers end-to-end clinical and laboratory services for accelerating clinical research and PBI provides premier biomarker and specialty efficacy testing services to the drug development industry. This partnership with Clinigene provides PBI access to India, an emerging hub for drug development and contract research.

3.6 Evaluation of Target Sector(s) for Proposed Site It is very critical to identify the products with inherent and strategic strengths, considering the location. West Godavari district suffers from the absence of any R&D Institutions/Laboratories or even manufacturing. While this may be weakness in projecting the Bio Tech Hub at Dubacherla, it is also pertinent to emphasise that the area is virgin and unexplored. Given the right infra linkages as well as the association of Universities, the District can garner the pride of place in the Indian Bio Tech Industry. ICICI Knowledge Park at Hyderabad has sowed the seeds of the concept of Genome Valley and a decade of sustained interest shown by the Government, today, Hyderabad has secured a signature presence in the field of Biotechnology, often outscoring Bengaluru. Same is the case of development of Information Technology and IT Enabled Services at Hyderabad. There is also a need to disperse certain activities across the state to encourage regional development. With better connectivity, and with active association of a few of the companies which have specialized in Agri Bio tech, will set the tone for investments in the District. Some of the prominent Research Institutions which would support the Hub are:  Directorate of Oil Palm Research, Near Jawahar Navodaya Vidyalaya, West Godavari  Central Tobacco Research Institute, Rajahmundry  Directorate of Sorghum Research, Rajendranagar, Hyderabad  Directorate of Rice Research, Rajendranagar, Hyderabad  National Academy of Agricultural Research & Management, Rajendranagar Hyderabad  Centre for Cellular & Molecular Biology, Hyderabad  Indian Institute of Chemical Technology, Hyderabad  Central Research Institute of Dryland Agriculture, Hyderabad  Directorate of Oilseed Research, Rajendranagar, Hyderabad

3.6.1 State Support The Government of Andhra Pradesh have unveiled “Biotechnology Policy” on 29th April, 2015. This policy while acknowledging the Biotechnology sector as Key Driver, has

3 Market Study and Demand Assessment Page 16 DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0 emphasized on certain focused sectors like biopharmaceuticals, bio-services, bio-agriculture, bio-industrial and bioinformatics. The Policy has also addressed the need to start Life Science Knowledge Centre which will establish Life Sciences Knowledge Centres at Andhra University, Visakhapatnam; JNTU, Kakinada; Horticultural University, Tadepalligudem; NTR UHS, Vijayawada and SVVU Tirupati in PPP mode in partnership with Industry/academia/Government of Andhra Pradesh. Some of the areas of the sector like Clinical data management, drug discovery and low-cost product manufacturing which are the advantages Indian firms enjoy in the global market, can trigger the initiation of Bio tech Hub in the District. The proposed hub will focus on these fields of biotechnology along with Agri-biotech. Perhaps a company like Nuzvid Seeds would drive the initial momentum to kick start the park followed by other seed companies. A cursory review of the present Bio technology growth in India, presents an opportunity in Agri biotech at this Hub as all the existing Bio Tech Hubs are focusing on health care and Life Sciences. The four districts of Coastal Andhra Pradesh Krishna, Guntur, East and West Godavari Dts are predominantly agriculture dominated, with focus on tobacco, cotton and other crops including rice. Lot of scientific initiatives are happening on these products and the Bio Tech Hub can provide the adequate space for enhancement of Research Activities as well as its commercialization. Large scale diversity is not suggested as building up facilities for each of the activity would be uneconomical and detrimental to the financial feasibility. Notwithstanding, the Bio tech hub would consider accommodating related diversified activities. Besides, focusing on Food & Agri Bio Tech, the Park can focus on Contract Research Services as well as Bio Informatics. Identifying a sector and building up forward and backward linkages is essential for the success of the Industry. It is not adequate to identify focus areas, but to identify and build up on the existing facilities and scaling up to the required levels of International competence is the key to success. Once the key sectors/products are identified, the Government shall endeavor to bring in the necessary administrative and financial facilitation to make it success. As in the case of Genome Valley as well IT Corridor, the role of Government was the major factor for the success of the parks. The suggested focused sectors are Agri Biotech, Contract Research, Clinical Data Management, Bio informatics. These areas call for huge R&D support to sustain, with the fruitful association of Industry, Universities and R&D Laboratories. It is also desirable to have collaborative arrangements with reputed institutions and universities across globe.

3.6.2 Infrastructure Facilities The Park spreads over an extent of 500 and would call for an investment of about INR 3000 millions and would provide besides developed land, lab space of about 5,00,000 sq.ft, Administration and other Utilities of 25,000 sq. ft and incubation centre of about 1,00,000 sq.ft. The park will have uninterrupted power back up, with piped water and gas, food courts, recreation, technical library, and the entire park is managed by Intelligent Building Management System and a dedicated effluent treatment plant.

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3.6.3 Short List of Sectors Growing at an average rate of about 3%, India's biotech industry comprising biopharmaceuticals, bio services, bio agriculture, bio industry and bioinformatics could reach the US$ 25 billion mark by FY20. Bio pharma is the largest sector contributing about 62% of the total revenue followed by bio services (18%), bioagri (15%), bio industry (4%), and bioinformatics contributing (1%). India has emerged as a leading destination for clinical trials, contract research and manufacturing activities owing to the growth in the bio services sector, which accounts for revenue generation worth about US$ 2 billion.

3.6.4 Market size The Indian biotech industry holds about 3% share of the global biotech industry. The Indian biotechnology sector is expected to grow from the current US$ 5-7 billion to US$ 100 billion by 2025 by doubling the growth rate of this sector from 15 percent to 30 percent, according to the Association of Biotechnology Led Enterprises (ABLE). The high demand for different biotech products has also opened up scope for the foreign companies to set up bases and reap great profits. The biotechnology industry in India, comprising about 400 companies, has grown three-fold in the last five years to reach US$ 7billion in FY 15. The growth in Gross Domestic Product (GDP) over the next decade will expand the domestic market and Indians will be able to afford healthcare products, and demand for food commodities and energy will grow too. Presently, many countries are looking forward to invest in the Indian biotechnology sector.

3.6.5 Bio Pharma The Bio pharma segment contributes a large portion to the Indian biotech segment both in terms of the number of companies as well as its contribution to revenue. The bio pharma segment mainly comprises of vaccines and non-vaccine therapeutics, some novel products and contract services.

3.6.6 Vaccines Public health consciousness and economic perspectives have automatically enhanced the importance of vaccines world over. India presently has about 15 large vaccine manufacturers who work on over 50 brands for 15 different vaccines. The vaccine business contributes to over 50% of the bio pharma business in India. Indian companies that produce vaccines have been able to master the requirements of good manufacturing practices for macromolecules and are continuously earning the goodwill of international companies.

3.6.7 Bio Generics The Bio generics market is a major future opportunity in economic terms for India, especially to manufacture products at lower costs, when a large number of global blockbuster biotech drugs are going off patent. India is positioned well to take advantage of this and garner a sizeable share in this pie.

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3.6.8 Contract Services Indian biotech companies carry out several contract services including R&D, clinical trials and manufacturing. India is fast becoming one of the largest centers or hub for global clinical trials. Several factors including low costs, large patient pool, easy recruitment, strong government support and strengthening of the intellectual property environment are likely to raise the Indian contribution to global trials from 5% to 10% by 2020. The bio pharma segment continued to account for the largest share of the biotech industry's revenues. The bio pharma sector accounted for a 65% share of the total pie. The bio services sector registered a 31% growth in the period, while the bio-agriculture sector grew by 24%. The bio industrial sector grew by 16% and the bioinformatics sector grew by 15%.

3.6.9 Industrial Enzymes With the country offering numerous comparative advantages in terms of R&D facilities, knowledge, skills, and cost effectiveness, the biotechnology industry in India has immense potential to emerge as a global key player. India currently has a marginal share in the global market for industrial enzymes that is estimated to reach about US$ 10 billion by 2020. Hence, there is an opportunity in focused R&D and knowledge-based innovation in the field of industrial enzymes, which can innovatively replace polluting chemical processes into eco-friendly processes that also deliver environmental sustainability. Another interesting field of study is the area of bio-markers and companion diagnostics, which will enable to optimise the benefits of biotech drugs. With all the support, government initiatives and determination to excel, India can soon attain global leadership in providing affordable healthcare and innovative medicines, quality food and feed for all.

3.7 Estimated Demand for Space of Focus Sectors It is proposed to develop the Bio Tech hub over an area of around Ac 500 which will house the units engaged in Agri Bio tech, Contract Services, Clinical Data Management, and Bio Informatics. It is also essential to develop and provide incubation facilities for startup units as this sector is heavily dependent on R&D. Among other facilities, it is proposed to build wet labs (Modular Labs) with all the services like water, gas, chemicals and Reagents, Technical literature, a conference hall, cafeteria and some recreational facilities.

3.8 Expected Impact of Focused Sector The biotechnology sector is expected to offer huge investment opportunities in the coming five to 10 years in the areas of vaccines, bioactive therapeutic proteins, contract research, clinical trials, bioinformatics, medicinal plants, animal biotechnology, stem cell biotechnology, bio-fuels, bio pesticides, bio-informatics, human genetics and environmental biotechnology. Rising investments from foreign companies, increasing R&D and infrastructure investments from the private and public sectors, emerging market for contract research, increasing clinical capabilities in drug discovery and rising opportunities to outsource manufacturing functions to the country are the key factors driving this market growth.

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The Indian biotechnology sector presents various advantages in terms of a lucrative return on investment. Some of these advantages are:  Structural advantages: India’s billion-plus population base offers a huge market for biotech products and services. Moreover, rising purchasing power fuels demand for healthcare services. India is experiencing an expanded middle-class population, and this segment’s size is estimated to touch 550 million by 2025 from 50 million in 2010.  Low labour cost: India offers a low-cost and skilled labour force, which is a key reason for the country attracting outsourced research activity from global biotechnology companies.  R&D investment by biotech firms: Biotech firms are increasingly using India as a base to undertake focused research and development activities. This is also aided by rising government funding for product innovation and research in the biotech sector. Biotechnology Hub aims to provide a vision of biotechnological progress and self-renewing life that is also social progress, a future social order organized around the prosperity and health to be created by biotechnical innovation. The proposed Biotechnology Hub is  To be a focal point for scientific talent.  To attract top talent to do world-class research, and to serve as fertile training ground for undergraduate and graduate students.  This magnet of talent is the single most crucial element for the biomedical industry to grow.  Second - to integrate and synergise the capabilities and resources of research institutes and to encourage cross-disciplinary research.  And third - to bridge the private sector and public sector research work by creating an environment that fosters exchange of ideas and close collaboration. Such close interface between researchers from industry and scientists from research institutes will accelerate the translation of new discoveries to marketable products.

3.9 Estimated Revenue

Name of Forest Revenue Per Acre S. NO Type of industry Block (Rs Crore)

Bio Tech Hub

Agri Bio tech

Contract Services 1 Dubacherla 24 Clinical Data Management

Bio Informatics

Agri Bio tech

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4 Site Master Plan

4.1 Preamble A state-of-the-art Master Planning incorporating holistic and sustainable industrial development concepts shall include:  Long term vision with focus on international competence  Focus on integrated infrastructure  Optimal utilisation of available land and flexibility in plot division  Optimal use of natural resources including energy conservation measures  Traffic management  Inclusion of social infrastructure – housing and allied requirements  Integration of operation and management aspects Such an approach shall ensure that various stake holders of the project as well as the environment are benefited.

4.2 Planning Concepts The planning concepts considered for the site master planning are presented in the following Figure 4-1.

Figure 4-1: Planning Concepts

4.2.1 Consideration  The site boundary provided by APIIC is the base for preparation of the Site Master Plan for the project site.  Surrounding land use and wind direction taken into consideration for the land use plan proposed within the site  Existing connectivity to the site is from the State Highway which is at a distance of 6 km from SH-6 and 14 km from SH-44.

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4.2.2 Product Mix Based on the Market Study Assessment, biotechnology hub is proposed for the Dubacherla Site. There is a demand for only 500 acres for the biotechnology park in the project site. It is proposed to develop ~500 acres of industrial land in the project site in the phase I and the remaining industrial land of 1,832 acres to be developed in the phase II – which may include future industrial demand, R&D, other allied infrastructure. Master plan is shown for both the phases.

4.3 Site Master Plan The following land uses are proposed in the Industrial Parks.  Industrial use  Common amenities  Infrastructure utilities  Green areas and green belt  Logistics  Road Network The area break up of all the proposed activities in the project site is shown in the following Table 4-1. Table 4-1: Proposed Land Use Break up for Dubacherla Industrial Park (for Two Phases)

S.No Type of activity Area in Acres % to total area 1. Industrial 2025 72 2. Common Amenities 92 3 3. Infrastructure Utilities 76 3 4. Logistics 44 2 5. Green areas 120 4 6. Green belt 299 11 7. Roads 163 6 Total Area 2,819 100

The total industrial land proposed in the industrial park covers 72% of the total area. Green areas/green belt cover around 15% and the roads cover around 6%. The balance land is proposed for the infrastructure utilities, common amenities, administrative building, common parking space and industry related facilities which accounts to around 8%. Site master plan is provided as Figure FD0401. Phase I will include development of Biotechnology Park covering a net area of 493 acres. Balance industrial area of 1532 to be developed in phase II.

4.3.1 Proposed Entry/Exit Proper planning of Entry/ Exit is essential for effective functioning of the Industrial Park. There is one entry/ exit proposed in the Industrial Park area and is shown as Point 1. Exclusive entry/exit is proposed and the location of emergency entry/exit is shown as Point 2

4 Site Master Plan Page 22 N TO KAMAVARAPUKOTA

20 Ac. KEY MAP-WEST GODAVARI DISTRICT 12 Ac. 20 Ac. 20 Ac. 20 Ac. 23 Ac. 24 M WIDE ROW 20 Ac. 20 Ac. 12 Ac. 20 Ac. Khammam 20 Ac. 24 M WIDE ROW 20 Ac.

20 Ac. 20 Ac. 20 Ac. TO KHAMMAM/ HYDERABAD 22 Ac. 20 Ac. 20 Ac. East Godavari SH 42 JANGAREDDIGUDEM RIVER GODAVARI 30 M WIDE ROW PARIMPUDI 20 Ac. 20 Ac. YERRA KALUVA EMERGENCY SH 43 20 Ac. 20 Ac. 20 Ac. RESERVOIR 30 Ac. ENTRY/EXIT 11 Ac. 30 M WIDE ROW 20 Ac. DEVARAPALLI 20 Ac.

45M WIDE ROW SH 44 20 Ac. SH 42 20 Ac. DWARAKA 10 Ac. 20 Ac. TIRUMALA 30 M WIDE ROW 20 Ac. SCR MAIN LINE GNT ROADSH 6 20 Ac. 50 Ac. 20 Ac. BHIMADOLE 20 Ac. 20 Ac. NH 5 (AH 45) 20 Ac. TADEPALLIGUDEM TO 27 Ac. 20 Ac. TANUKU RAJAHMUNDRY/ VISAKHAPATNAM/ 20 Ac. 20 Ac. ELURU KOLKATA 30 M WIDE ROW 9 Ac. 20 Ac. 20 Ac. SH 42 10 Ac. 20 Ac. 20 Ac. 20 Ac. 12 Ac. 155 Ac. TO 20 Ac. 20 Ac. VIJAYAWADA/ 144 Ac. 20 Ac. NH 214 20 Ac. 27 Ac. 24 M WIDE ROW CHENNAI 20 Ac. 20 Ac. Krishna 36 Ac. 20 Ac. 20 Ac. NH 214A 20 Ac. 27 Ac. 20 Ac.

8 Ac. 20 Ac. 45M WIDE ROW 20 Ac. LEGEND 20 Ac. 20 Ac. 30 M WIDE ROW 20 Ac. PHASE-1 INDUSTRIAL AREA (493 Ac.) 24 M WIDE ROW 20 Ac. 18 Ac. 13 Ac. 26 Ac. 30 M WIDE ROW 20 Ac. 20 Ac. 9 Ac. PHASE-2 INDUSTRIAL AREA (1832 Ac.) 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 24 M WIDE ROW 20 Ac. 20 Ac. COMMON AMENITIES 20 Ac. 20 Ac. 20 Ac. AREA (Ac.) 20 Ac. DUBACHERLA LANDUSE % 20 Ac. 20 Ac. 20 Ac. INDUSTRIAL(BIO TECH PARK) 2025 72 INFRASTRUCTURE UTILITIES 20 Ac. 45M WIDE ROW 20 Ac. 20 Ac. 20 Ac. 20 Ac. COMMON AMENITIES 92 3 24 M WIDE ROW 20 Ac. 30 M WIDE ROW 33 Ac. LOGISTICS 20 Ac. 20 Ac. 76 3 20 Ac. 20 Ac. INFRASTRUCTURE UTILITIES 12 Ac. 20 Ac. 20 Ac. 20 Ac. LOGISTICS 44 2 GREEN AREAS 20 Ac. GREEN AREA 120 4 30 M WIDE ROW 20 Ac. GREEN BELT 20 Ac. GREEN BELT 299 11 20 Ac. 30 M WIDE ROW 20 Ac. 163 6 20 Ac. 20 Ac. ROADS 2 Ac. TO DUBACHERLA 20 Ac. TOTAL 2819 100% 14 Ac. 20 Ac. 24 M WIDE ROW Road Lengths In Metres In Km 45 M Row 3579 3.6 0 Km 0.5 Km 1 Km ENTRY/EXIT 30 M Row 12492 12.5 24 M Row 14647 14.7 12 M Row (Periphery Road) 7567 7.6 SCALE IN KILO METRES &T Ltd.

L&T-Ramboll Limited

Engineering

Engineers

L&T Infra Engineering Infrastructure Consulting DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0 in Figure 4-2. In the case of emergency, the Industrial Park users can utilise the emergency entry/exit which is linking to the existing SH-44 via proposed G.Kothapalli alternative road.

Point 2

Point 1

Figure 4-2: Proposed Entry/ Exit Points

4.3.2 Circulation and Road Hierarchy The entire IP will have different hierarchy of roads, with the primary road of 45m and 30m RoW. The secondary roads are of 24m and 12m RoW. The entire circulation plan is shown in Figure FD0402. Typical Cross sections of the RoW are provided in Figure FD0403 and Figure FD0404. Green belt proposed along the boundary will have peripheral road for maintenance purpose. The cross sections also include utility corridor (water, power, wastewater, telecom network, etc) and foot path for pedestrian traffic.

4.3.3 Green / Open Areas Green belt is proposed along the site boundary. Green areas are also proposed near the infrastructure utilities to serve as recreational facilities and lung spaces. In addition to this, all the industrial units shall develop green areas within their premises as per the prevailing Andhra Pradesh Pollution Control Board (APPCB) provisions. The green areas proposed are shown in Figure FD0405.

4.3.4 Infrastructure Utilities / Common Amenities / Industry Related Facilities The following amenities are proposed in the site and proposed location is shown in Figure FD0406.  Truck parking and dormitory  Administrative building  Fire station at prominent locations near the entrances

4 Site Master Plan Page 23 TO KAMAVARAPUKOTA 20 Ac. 12 Ac. 18 Ac.

24 M WIDE ROW 20 Ac. EMERGENCY ENTRY/EXIT 144 Ac. 20 Ac.

20 Ac. 24 M WIDE ROW WIDE M 24 10 Ac. 30 M WIDE ROW 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac.

20 Ac. 30 M WIDE ROW WIDE M 30 20 Ac. 20 Ac. 30 M WIDE ROW 20 Ac. 20 Ac. 14 Ac. 20 Ac. 20 Ac.

20 Ac. 30 M WIDE ROW WIDE M 30 20 Ac.

24 M WIDE ROW 20 Ac.

20 Ac.

10 Ac. 20 Ac. 30 M WIDE ROW ROW WIDE 45M 11 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 30 Ac. 20 Ac. 13 Ac. 20 Ac. 20 Ac. 20 Ac. 36 Ac.

24 M WIDE ROW ENTRY/EXIT 22 Ac.

20 Ac.

20 Ac. 12 Ac. 12 9 Ac. 9 20 Ac. 20 Ac. 20 Ac.

30 M WIDE ROW

27 Ac.

20 Ac. 45M WIDE ROW WIDE 45M 12 Ac. 20 Ac. 9 Ac.

27 Ac. 20 Ac. Ac. 8 20 Ac. 20 Ac. 20 Ac.

20 Ac.

27 Ac. 24 M WIDE ROW WIDE M 24 45M WIDE ROW WIDE 45M 23 Ac. 20 Ac. 2 Ac. 26 Ac. 20 Ac. 20 Ac. 33 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 12 Ac. 20 Ac.

20 Ac. 30 M WIDE ROW

20 Ac. 20 Ac. TO DUBACHERLA TO 20 Ac. 20 Ac. 20 Ac.

20 Ac. 24 M WIDE ROW 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac.

20 Ac. 30 M WIDE ROW 20 Ac. 24 M WIDE ROW WIDE M 24 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac.

20 Ac.

20 Ac. 20 Ac. 24 M WIDE ROW WIDE M 24

20 Ac. 30 M WIDE ROW 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac.

155 Ac.

20 Ac. 24 M WIDE ROW WIDE M 24 50 Ac. 20 Ac. 20 Ac. 20 Ac.

20 Ac. &T ROW WIDE M 24 Infrastructure Engineering Ltd. L&T-Ramboll Consulting Engineers Limited 12 M Row (Periphery Road) ROADS LOGISTICS 24 M Row 30 M Row 45 M Row DUBACHERLA LANDUSE Road Lengths TOTAL L & T Infra Engineering AREA (Ac.) In Metres 14647 12492 7567 3579 207 163 44 In Km % 14.7 12.5 7.6 3.6 6 2 KEY MAP-WEST GODAVARI DISTRICT VIJAYAWADA/ CHENNAI TO Khammam PHASE-2 INDUSTRIAL AREA (1832 Ac.) PHASE-1 INDUSTRIAL AREA (493 Ac.) LOGISTICS 12 M PERIPHERAL ROAD 24 M WIDTH RoW 30 M WIDTH RoW 45 M WIDTH RoW 0 Km TO KHAMMAM/

SH 43 HYDERABAD Krishna SCALE IN KILO METRES YERRA KALUVA RESERVOIR

ELURU SH 44 42 SH LEGEND TIRUMALA DWARAKA JANGAREDDIGUDEM 0.5 Km BHIMADOLE

NH 5 (AH 45) GNT ROAD N SH 6

NH 214 SH 42 SH PARIMPUDI TADEPALLIGUDEM DEVARAPALLI SCR MAIN LINE

NH 214A

1 Km TANUKU

SH 42 SH RIVER GODAVARI RIVER East Godavari VISAKHAPATNAM/ RAJAHMUNDRY/ KOLKATA TO &T Infrastructure Engineering Ltd. L&T-Ramboll Consulting Engineers Limited L & T Infra Engineering &T Infrastructure Engineering Ltd. L&T-Ramboll Consulting Engineers Limited L & T Infra Engineering TO KAMAVARAPUKOTA 20 Ac. 12 Ac. 18 Ac.

24 M WIDE ROW 20 Ac. EMERGENCY ENTRY/EXIT 144 Ac. 20 Ac.

20 Ac. 24 M WIDE ROW WIDE M 24 10 Ac. 30 M WIDE ROW 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac.

20 Ac. 30 M WIDE ROW WIDE M 30 20 Ac. 20 Ac. 30 M WIDE ROW 20 Ac. 20 Ac. 14 Ac.

20 Ac. 20 Ac. 30 M WIDE ROW WIDE M 30 20 Ac. 20 Ac.

24 M WIDE ROW 20 Ac.

20 Ac.

10 Ac. 20 Ac. 30 M WIDE ROW ROW WIDE 45M 11 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 30 Ac. 20 Ac. 13 Ac. 20 Ac. 20 Ac. 20 Ac. 36 Ac.

24 M WIDE ROW ENTRY/EXIT 22 Ac.

20 Ac.

20 Ac. 12 Ac. 12 9 Ac. 9 20 Ac. 20 Ac. 20 Ac.

30 M WIDE ROW 27 Ac. 20 Ac.

12 Ac.

20 Ac. 9 Ac. 45M WIDE ROW WIDE 45M

27 Ac. 20 Ac. Ac. 8 20 Ac. 20 Ac. 20 Ac.

20 Ac.

27 Ac. 24 M WIDE ROW WIDE M 24 45M WIDE ROW WIDE 45M 23 Ac. 20 Ac. 2 Ac. 26 Ac. 20 Ac. 20 Ac. 33 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 12 Ac. 20 Ac.

20 Ac. 30 M WIDE ROW

20 Ac. 20 Ac. TO DUBACHERLA TO 20 Ac. 20 Ac. 20 Ac.

20 Ac. 24 M WIDE ROW 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac.

20 Ac. 30 M WIDE ROW 20 Ac. 24 M WIDE ROW WIDE M 24 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac.

20 Ac. 30 M WIDE ROW 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 155 Ac. 20 Ac. 50 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac.

&T Infrastructure Engineering Ltd. L&T-Ramboll Consulting Engineers Limited L & T Infra Engineering GREEN BELT GREEN AREA KEY MAP-WEST GODAVARI DISTRICT VIJAYAWADA/ DUBACHERLA LANDUSE CHENNAI TO Khammam 0 Km TO KHAMMAM/

SH 43 HYDERABAD PHASE-2 INDUSTRIAL AREA (1832 Ac.) PHASE-1 INDUSTRIAL AREA (493 Ac.) GREEN BELT GREEN AREAS Krishna TOTAL SCALE IN KILO METRES YERRA KALUVA RESERVOIR

ELURU SH 44 42 SH LEGEND TIRUMALA DWARAKA JANGAREDDIGUDEM 0.5 Km BHIMADOLE

NH 5 (AH 45) GNT ROAD N SH 6

NH 214 AREA (Ac.) 42 SH PARIMPUDI TADEPALLIGUDEM DEVARAPALLI SCR MAIN LINE

NH 214A

1 Km TANUKU 120 419 299

SH 42 SH RIVER GODAVARI RIVER East Godavari % VISAKHAPATNAM/ RAJAHMUNDRY/ KOLKATA 11 TO 4 TO KAMAVARAPUKOTA 20 Ac. 12 Ac. 18 Ac.

24 M WIDE ROW 20 Ac. EMERGENCY ENTRY/EXIT 144 Ac. 20 Ac.

20 Ac. 24 M WIDE ROW WIDE M 24 10 Ac. 30 M WIDE ROW 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac.

20 Ac. 30 M WIDE ROW WIDE M 30 20 Ac. 20 Ac. 30 M WIDE ROW 20 Ac. 20 Ac. 14 Ac. 20 Ac. 20 Ac.

20 Ac. 30 M WIDE ROW WIDE M 30 20 Ac.

24 M WIDE ROW 20 Ac. 20 Ac. 20 Ac.

10 Ac. 30 M WIDE ROW ROW WIDE 45M 11 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 30 Ac. 20 Ac. 13 Ac. 20 Ac. 20 Ac. 20 Ac. 36 Ac.

24 M WIDE ROW ENTRY/EXIT 22 Ac.

20 Ac.

20 Ac. 12 Ac. 12 9 Ac. 9 20 Ac. 20 Ac. 20 Ac.

30 M WIDE ROW 27 Ac. 20 Ac.

12 Ac.

20 Ac. 9 Ac. 45M WIDE ROW WIDE 45M

27 Ac. 20 Ac. Ac. 8 20 Ac. 20 Ac. 20 Ac.

20 Ac.

27 Ac. 24 M WIDE ROW WIDE M 24 45M WIDE ROW WIDE 45M 23 Ac. 20 Ac. 2 Ac. 26 Ac. 20 Ac. 20 Ac. 33 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 12 Ac. 20 Ac.

20 Ac. 30 M WIDE ROW

20 Ac. 20 Ac. TO DUBACHERLA TO 20 Ac. 20 Ac. 20 Ac.

20 Ac. 24 M WIDE ROW 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac.

20 Ac. 30 M WIDE ROW 20 Ac. 24 M WIDE ROW WIDE M 24 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac.

20 Ac. 30 M WIDE ROW 20 Ac. 20 Ac. 20 Ac. 20 Ac. 20 Ac. 155 Ac. 20 Ac. 50 Ac.

20 Ac.

20 Ac. 20 Ac. 24 M WIDE ROW WIDE M 24 20 Ac.

&T Infrastructure Engineering Ltd. L&T-Ramboll Consulting Engineers Limited L & T Infra Engineering INFRASTRUCTURE UTILITIES COMMON AMENITIES KEY MAP-WEST GODAVARI DISTRICT VIJAYAWADA/ DUBACHERLA LANDUSE CHENNAI TO Khammam 0 Km TO KHAMMAM/

SH 43 HYDERABAD Krishna PHASE-2 INDUSTRIAL AREA (1832 Ac.) PHASE-1 INDUSTRIAL AREA (493 Ac.) INFRASTRUCTURE UTILITIES COMMON AMENITIES SCALE IN KILO METRES YERRA KALUVA RESERVOIR

ELURU SH 44 42 SH LEGEND TIRUMALA DWARAKA JANGAREDDIGUDEM 0.5 Km BHIMADOLE

NH 5 (AH 45) GNT ROAD N SH 6

NH 214 AREA (Ac.) 42 SH PARIMPUDI TADEPALLIGUDEM DEVARAPALLI SCR MAIN LINE

NH 214A 1 Km TANUKU

76 92

SH 42 SH RIVER GODAVARI RIVER East Godavari % VISAKHAPATNAM/ RAJAHMUNDRY/ KOLKATA TO 3 3 DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

 Community hall, recreational spaces, banks and ATMs, post office, restaurants, cafeterias, fuel filling station, hotel, convention centre, etc at convenient locations distributed so that it can be easily accessed  Wastewater treatment plant (CETP)  Solid waste management  Hospital/ Clinic at convenient locations  Apart from the above common amenities, Industrial park will also include industry related facilities like R&D centres, material testing centres, QC laboratories, training centres, weigh bridge, exhibition cum business centre, etc.

4.4 Housing2 Proposed park will generate employment and it is proposed that the nearest urban centres will be serving the housing needs of the employees.

2 This proposal on housing was based on the discussions on submission of the Preliminary Report and review meeting on May 29, 2015 at Collector & District Magistrate Office, Eluru, W.G District, Andhra Pradesh.

4 Site Master Plan Page 24 5 Infrastructure Assessment and Cost Estimation

DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

5 Infrastructure Assessment and Cost Estimation The following infrastructure is proposed for the Industrial park.  Road Network  Water supply  Wastewater management  Storm water management  Solid waste management  Power supply system Infrastructure demand and block cost are estimated for the land to be developed in phase I. Hence the demand is calculated for the land covering an area of 493 acres.

5.1 Infrastructure Demand Assessment Infrastructure demand assessment for the site is carried out considering the proposed land use, area break up. The following Figure 5-1 shows the methodology adopted for infrastructure assessment of the site.

Figure 5-1: Methodology for Infrastructure Assessment

5.1.1 Internal Road Network The master plan of project site is proposed such that it provides an efficient road network. This network ensures that all parts of the site are effectively connected with each other with efficient traffic movements. Proposed different RoW in project site are 45 m, 30 m and 24 m. 12 m wide road is used as peripheral road for service and also for emergency exit at the time of fire hazard. The road cross-sections is proposed based on the RoW for various categories of roads in the master plan.

5.1.2 Power Supply The total power demand for the industries in the project site will be 21 MVA.

5 Infrastructure Assessment and Cost Estimation Page 25 DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

5.1.3 Water Supply Total water demand for various uses in the industrial park includes process water, green belt maintenance, fire demand, drinking, flushing, etc. The total water demand for the park is estimated at 9 MLD.

5.1.4 Wastewater Management Wastewater is generated from the industrial use, common amenities proposed in the project site. It is broadly classified as industrial effluents and domestic wastewater. The total wastewater estimated to be generated from the site is 7 MLD.

5.1.5 Solid Waste Management The total solid waste generation from the project site is estimated at 5 TPD.

5.1.6 Storm Water Management Storm water drains are proposed within the RoW of Roads.

5.2 Block Cost Estimates Block cost estimates for the infrastructure development of the site in Phase I is based on the infrastructure demand and line estimates.  Site grading will costs around Rs.67 Crores  The total cost for development of road network in the industrial parks is estimated at Rs. 41 Crores.  Cost for development of streetlights is estimated at Rs.2 Crores  Total cost for development of water supply and distributions costs Rs.3 Crores  Drainage costs around Rs.12 Crores  Wastewater management costs about Rs.20 Crores  Cost for municipal solid waste management is estimated as Rs.1 Crore. Industrial waste is proposed to be managed by contracted to be engaged by industry/ APIIC  Cost for development of green belt, landscaping, admin and security cabin is estimated at Rs.9 Crores  For power component, power will be supplied by the Government (APSPDCL) and the industries for power will be charged based on the usage.

5 Infrastructure Assessment and Cost Estimation Page 26 DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

Table 5-1: Block Cost Estimates S. No Item Cost (in Rs. Crores) 1. Site Grading 67 2. Road network and signages 41 3. Street lights 2 4. Water supply network including storage 3 5. Drainage 12 6. Wastewater Management 20 7. Solid Waste Management 1 Greenbelt including landscaping, admin block and 9 8. security cabin Sub Total 155 Engineering and project management @ 2.5% 4 Contingency@ 5% 8 TOTAL COST 167

5 Infrastructure Assessment and Cost Estimation Page 27 6 Cost Benefit Analysis

DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

6 Cost Benefit Analysis3

6.1 Introduction Government of Andhra Pradesh (GoAP) decides to utilise forest land for setting up of industrial parks. As required by the GoI policy, the cost and benefit from the forest land conversion has to be estimated prior to the conversion of forest land to industrial lands. This Chapter covers the Cost Benefit analysis of Biotech Hub in Dubacherla, Andhra Pradesh.

6.2 Overall Approach & Methodology The cost benefit analysis has been carried out by analysis the benefit generated by the business that will be established in the converted land against the expense / cost incurred in the conversion process.

6.3 Revenue generation The revenue from the converted land comes to Rs.240 Mn per Acre. The revenue generating space in the project comes to 493 acres with that the total revenue from the project is estimated at Rs.1,18,320 Mn.

6.4 Cost incurred The details of the cost incurred while converting the forest land to the industrial land are given in the following paragraphs.

6.4.1 Project Investment The capital outlay incurred for the development of the Bio tech Hub comes to Rs.4,550 Millions.

6.4.2 Land Cost: APIIC has to pay Forest Department an amount of Rs 0.32 Mn per acre as the cost of forest land.

6.4.3 Cost on Afforestation APIIC has to carry out a compensatory afforestation effort for utilising the earmarked for the development of Industrial Park. The capital expenditure for afforestation efforts comes to about Rs 0.22 Mn per acre where as the maintenance expenses for the same comes to around Rs 0.10 Mn per acre per annum.

6.4.4 Foregone revenue from the forest land The foregone revenue from the forest land comes to around Rs 0.49 Mn per acre. Same has been considered for the cost – benefit analysis.

6.4.5 Interest The interest incurred in funding the project comes to 12% per annum. The interest expense has been considered on the development cost estimated for the project.

3 Cost Benefit Analysis is carried out for Phase I development of the site.

6 Cost Benefit Analysis Page 28 DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

6.4.6 Depreciation: The details of the depreciation to be charged on the project assets are given in the following table. Depreciation Rate of Depreciation % w.r.t to capital cost Civil 3.33% 55% Electrical 7.42% 15% Mechanical 7.42% 20% Msc Assets 7.42% 10% The total depreciated amount comes to Rs.235 Mn.

6.5 Details of Cost and Benefit The Overall benefits from the project comes to Rs.1,18,320 Mn where as the expenses incurred on converting forest land comes to Rs.6,173 Mn. The details of the analysis are given in Annexure Error! Reference source not found..1

6.6 Conclusion The revenue from the converted land justifies the cost incurred for the conversion exercise as the overall B/C (Benefit / Cost) ratio comes to 19:1.

6 Cost Benefit Analysis Page 29 7 Financial Analysis

DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

7 Financial Analysis4

7.1 Introduction Financial feasibility is a key determinant in a business oriented investment decision. A project will attract investors and all other stakeholders only if the project generates sufficient revenues, during the project life, to cover the initial and additional investment costs, if any, plus a sufficient return on investment. The viability study on financials include the key standard parameters like Post Tax Project Internal Rate of Return (IRR), Equity IRR and Coverage ratios to ascertain the debt servicing capability of the project. This Chapter covers the financial viability for the Development of Bio tech hub at Dubacherla, Andhra Pradesh.

7.2 Objective The primary objectives of the financial analysis are to evaluate the financial viability of the project and to ascertain whether the project shall be attractive for its various stake holders.

7.3 Overall Approach & Methodology The overall approach to evaluate financial feasibility of the project involves determination of Financial Internal Rate of Return (FIRR) for the Project and comparing it with the Weighted Average Cost of Capital (WACC). This approach is preferred for infrastructure projects in which tariffs/ user fees can be levied and recovered with a reasonable certainty. The emphasis is on checking the adequacy of projected revenue streams to recover the capital investment and desired returns. The steps followed under this approach are:  Project Phasing and estimation of Capital Expenditure  Means of Finance  Identifying revenue sources and estimating the project revenues  Estimation of capital costs, operating expenses and financing costs over the project horizon  Drawing up of profit & loss and cash flow statements for project  Estimation of net operating cash flows for the project  Calculation of IRR and ADSCR

7.4 Key Assumptions in Financial Modelling The financial model takes inputs from the detailed technical studies done for the project & other data sources for financial assumptions. 1. The financial analysis has been carried at nominal prices, as the nominal price method attempts to capture the effect of economic environment of the project. 2. The capital costs for all the project elements of Industrial park have been taken and same shall be escalated by 5% per annum on 2015 prices to derive the subsequent project development costs.

4 Financial Analysis is carried out for Phase I development of the site.

7 Financial Analysis Page 30 DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

3. The project will developed in single phase. 4. Indigenous capital cost and operating cost escalation has been assumed at 5% p.a. 5. Economic assumptions have been derived from the values of base indicators for the Year 2015-16. 6. Financing Assumptions and data relating to loans, interest rates, tenure etc. have been taken on the basis of prevailing market trends. 7. Depreciation rates, tax rates and concessions applicable to infrastructure projects have been taken as per the guidelines of Companies Act and Income Tax Act.

7.5 Flexibility in Financial Model The financial analysis is based on the master plan. However, the model provides flexibility in choosing and executing a different land absorption forecasts .The model also provides flexibility in choosing financing mix for the project. The funds requirement in a particular year can be met through various sources of debt and equity. The model incorporates the flexibility of using different capital structures (D/E mix) for different phases.

7.6 Construction Period and Project Life The project shall be developed in single phase in tandem with the land absorption projection made for the project. As per the proposed schedule of implementation, the construction is assumed to begin from April 01, 2016. The construction period, including post construction activities like commissioning, is assumed to be requiring 18 months for the development. The COD may thus be assumed as 30 September, 2017. The details on major project milestones are given in Table 7-1. Table 7-1 Project Development Schedule

Construction Details- Phase I

Construction Start Period 01-Apr-16

Construction period ( in months) 18

First FY during Construction 31-Mar-17

Completion of Construction 30-Sep-17

Fy after completion of Construction 31-Mar-18

No of Operating Months in the first year after COD 12

Period considered for viability study (in years) 30

Last Financial Year 31-Mar-46

Working months in the last F Year 12

7.7 Project Cost The cost of the project is estimated at Rs 2285 Million (at 2015 prices). This cost is spread over a period between years 2016 and 2017. The cost includes Civil development cost, water

7 Financial Analysis Page 31 DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0 supply and distribution network, external road connectivity, green belt development, Equipment cost etc. The land cost is estimated at Rs 0.54 Mn per Acre, which consist of Rs 0.32 Mn per acre to be paid to Forest department and the compensatory afforestation cost of Rs 0.22 Mn per acre. The break-up of this cost (major heads) are given in Table 7-2 Table 7-2 : Capital Cost of the Project (2015 prices in Rs Mn) PROJECT LANDING COST IN RS Mn Amount in Rs Mn

Civil Cost 853

Electrical 233

Mechanical 310

Msc Assets 155

Block capital Cost 1,550

Land and Site Developments 406

Contingency @ 5% 78

Engineering and Project Management @ 2.5% 39

Preoperative expenses 34

Financing cost 17

Interest During Cost 161

Landing Project Cost 2,285

7.8 Financing Structure The financing structure reflects the risk of the projects, the security requirements of the lenders and financing requirements of the sponsors. The financing structure of a project also depends on the stage in lifecycle of the project. Infrastructure projects have three distinct phases with different risks. Both equity investors and lenders can be expected to seek different rewards and expect different guarantees depending upon which phase they are investing in. A typical Infrastructure project would involve the following phases as given in Table 7-3.

7 Financial Analysis Page 32 DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

Table 7-3 : Different phases of an infrastructure project

Phase Risks Financing Development phase Very high risk Only equity, mainly from sponsors Construction/start-up High risk Large volume of finance required. Mixture of phase equity & Senior debt is used under this phase. Public utility/operation Lower risk Refinancing with bonds or equity possible; high phase D/E ratios could be explored.

Also in the initial years of a project, greater equity participation may be more appropriate mode of funding, since if debt is used, interest cost would mount substantially due to the lack of any cash income in the development and construction phases of the project. But the availability of equity is bound to pose problem due to the magnitude of risks involved. The challenge for developers in structuring financing packages is to secure debt with maturities long enough to match capital servicing cash flow requirements with the limited inflows in the initial phases. Financing has been exclusively based on loans from the commercial banks, bilateral agencies and equity from the sponsors. Capital market sources have hardly been used in these projects. Also, equity financing has contributed a relatively small share of the financing. Infrastructure projects in developing countries usually have a financing pattern of 30-40 percent equity & 60-70% debt.

7.8.1 Funding Structure for the project It is considered that APIIC would raise sufficient fund in the form of Own fund and through debt raised from multilateral agencies / commercial banks. The funding structure refers to the mix of debt and equity components used as means of finance. We have considered a conservative D/E ratio of 1.5:1 for funding the project. The details of Means of Finance is given in Table 7-4. Table 7-4 : Means of Finance

Source of Fund Amount in Rs Mn Composition % Equity 892 39.0% Debt 1340 58.7% Non Refundable Deposit 53 2.3% Total 2285 100%

7.8.2 Financial Instruments & Cost of Funding The preferable financing sources/instruments, their tenure and dividend/interest on them are given below: Equity Structure The equity contribution would be from the project promoter raised from own sources. The Equity structure can either be consisting of a single member or may be of a consortium formed by various equity contributors (state agencies) having interest in the same project.

7 Financial Analysis Page 33 DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

Term Loan from Commercial Banks The potential sources of rupee debt include Indian Term Lending Institutions, Scheduled Commercial Banks, and Infrastructure Development Financing Agencies. These institutions are generally lent to infrastructure projects at rupee term loan interest for a longer tenure of upto 10 to 12 years. Commercial Banks loans would have a moratorium period of 1year. The current prime lending rate of Commercial Banks is 11.50 to 13.50 % per annum. Most infrastructure projects get term loans at PLR less 0.5 to 1.5%, depending upon the promoter and the project revenue stream. In view of the continual decrease in prime lending rates over the last few years, a rate of 12.00% is considered for the project. The details on debt are given in Table 7-5. Table 7-5 : Details on Debt

Details on Debt Interest on Senior Debt 12.00% Processing charges 0.75% Tenor Period under construction (in years) 1.5 Moratorium ( in years) 1 Repayment Period (in years) [Ballooned Repayment] 3

7.9 Depreciation Depreciation rates have been taken based on the current statutory requirements of Income Tax Act and Companies Act. The Written down Value Method has been used for the purpose of Income Tax, and the Straight Line Method has been adopted for the Companies Act purposes. The rates have been assumed based on the following categories of charges: Table 7-6 : Depreciation Rates

Depreciation Rates Rate SLM (%) Rate WDV (%) Civil Cost 3.34% 10.00% Electrical 7.42% 15.00% Mechanical 7.42% 15.00% Msc Assets 7.42% 15.00%

7.10 Operating Expenses Expenses are recurring in nature and would be incurred on day to day basis. These include Operating and Maintenance expenses, administration expenses, insurance premium etc. The expenses details are given in following paragraphs.

7.10.1 Operation and Maintenance Expenses For the operation and maintenance of the park, a provision of 2.50% on the block cost has been considered which will be escalated by 5% per annum.

7 Financial Analysis Page 34 DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

7.10.2 Administrative Expenses The administrative expenses for the project are estimated at 1% of the Block cost. The expense will be escalated by 5% per annum.

7.10.3 Insurance expenses Insurance shall be taken so as to mitigate any unforeseen events which may damage project assets. It is assumed that the project will incur insurance fee, annually, which would be equivalent to 0.75% on WDV of Fixed Assets.

7.11 Revenue Estimates The Industrial Park (I.P) will have revenue streams in the form of an upfront premium and the maintenance expenses collected from the occupants. The leasable space in the IP comes to 1995171 Sqm. The Upfront premium lease rent and the respective escalation factor considered for the viability study are given in Table 7-7. Table 7-7: Revenue Details Upfront Premium / Annual Maintenance Annual Revenue Sources Sqm In Rs charge / Sqm In Rs Escalation

Industrial Area 1450 30 5%

The agreement with the occupant shall be made for a period of 30 years wherein 2% of the initial premium shall be collected from the occupants as annual maintenance fee during the term of the agreement. The annual maintenance fee shall be escalated by 5% per annum.

7.12 Income Tax Calculations The Income Tax rate assumed for the project is 32.45%.

7.13 Financial Analysis - Base Case Scenario

7.13.1 Key Parameters The key project parameters computed are Project IRR (pre-tax), Project IRR (post-tax) and Equity IRR. The Project IRR (pre-tax) has been calculated based on the project outflows in the form of capital investment while the inflows have been considered based on the revenue net of operating expenses (excluding interest and tax) i.e. Profit Before Tax Plus: Interest Plus: Depreciation. The Project IRR (post-tax) calculation is similar to Project IRR (pre-tax) except that in the inflows, the tax payments have also been considered i.e. Profit After Tax Plus: Interest Plus: Depreciation. The equity IRR is based on the equity contribution being made by the investor as an outflow and the inflow is the net cash available for payment of dividend i.e. Profit After Tax Plus: Depreciation Less: Loan Repayment Obligation. The DSCR has been calculated for the entire loan tenure. The details of Interest During Construction (IDC) is provided in Annexure 7.1. Further, DSCR calculations, the projected Profitability statement, Cashflow statement, Balance sheet, IRR calculations are given in Annexure 7.2, Annexure 7.3, Annexure 7.4, Annexure 7.5 and Annexure 7.6, respectively.

7 Financial Analysis Page 35 DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

Based on the above analysis a base case scenario, with the following mix of key input variables and base traffic estimates, has been prepared. Table 7-8 : Key Input Parameters – Base Case Scenario

D/E ratio 1.5 :1 Cost of INR debt 12.00% Term of INR debt Ballooned Repayment Project Cost Sensitivity 100% of base case Lease premium and Annual Maintenance expense Sensitivity 100% of base case Table 7-9 : Key results – Base Case Scenario

Sl. No Project Parameters Returns 1 Pre tax IRR 21.96% 2 Post Tax IRR 14.25% 3 Equity IRR 19.33% 4 Average Debt Service Coverage Ratio with DSR 1.60

7.14 Observations Project IRR The project has IRR (post tax) of 14.25 %, considering the cashflow generated by the business till 2046. No terminal value on the project assets has been considered for the viability assessment. The Industrial Park development is a ‘Greenfield’ project and has a high perceived commercial risk; however this level of return may be just sufficient to get nullify the same.

7.15 Conclusion It is concluded that the project is financially viable based on the assumptions considered by the consultant on project cost, capital structuring, cost of capital, revenue and cost assumptions etc.

7 Financial Analysis Page 36

8 Conclusion

DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubaclerla Forest Block RP008 rev. 0

8 Conclusion Industrial development is proposed in the forest area for the following reasons.  Dubacherla block comes under the influence of the proposed Vizag – Chennai Industrial Corridor (VCIC) .initial studies projected tremendous growth for Andhra Pradesh in the next 20 years. Once VCIC becomes functional, the manufacturing output would reach Rs 3,000 billion by 2025 and Rs 7,825 billion by 2035. The proposed corridor is likely to have a strong influence on the industrial activities in all 13 districts of Andhra Pradesh and therefore there is a need for large tracts of industrial land to keep pace with the projected industrialisation.  Dubacherla Block is located between Kakinada and Gannavaram Nodes in West Godavari District. Most of the agricultural land in West Godavari District is three/two crop. To meet the industrial demand it is proposed to avoid the agricultural land and develop the industrial parks in the forest area. This will also help in preserving the agricultural land getting converted into industrialisation and also improves food security  As a compensation it is proposed for forestry in Anantapur and Chittor districts to the equal extend of area to be diverted for industrial area in West Godavari district  Considering the location strengths biotechnology park has been proposed at Dubacherla.

8 Conclusion Page 37 Annexures

Annexure 1.1 Form A for seeking prior approval under section 2 of the proposals by the state governments and other authorities

Annexure 6.1 Annual Benefit from the Project DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubacherla Forest Block RP008, Rev.0

Annexure 6.1 Dubacharla -Biotech Hub Annual Benefit from the project Area Revenue (in A Benefit from the industrial land earmarked In Rs Mn Rs Mn) / Acre in acre Revenue 240 493 Annual benefit 1,18,320

B Investment required for the industrial development In Rs Mn 4,550 Infrastructure Cost Site Grading 670.00 Roads 380.00 Street lighting 20.00 Water 30.00 Drainage 120.00 Waste water 200.00 Signages 30.00 Solid waste Management 10.00 Admin Green area etc 90.00 Sector Wise Investment 3000.00

C Land cost to Forest Department in Rs Mn per Acre 0.32 Area (in acres) 746 242

D Cost incurred on afforestation (In Rs Mn per acre) 219830 164 Maintenance cost in Rs Mn per acre/annum 98800 74

E Foregone revenue from the forest land per Acre ( Rs Mn) 0.49 Total Revenue from the forest land ( Rs Mn) 362

F Interest Rate 12% Interest on investment ( B*E) 546

G Depreciation % cost Civil 3.33% 55% 83 Electrical 7.42% 15% 51 Mechanical 7.42% 20% 68 Msc Assets 7.42% 10% 34

H Total annual cost 6,173

I BC Ratio = Annual benefit/ Total Annual cost (A/H) 19

Page 1 Annexure 7.1 Interest During Construction (IDC)

DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubacherla Forest Block RP008 rev. 0

Annexure 7.1 Interest During Construction (IDC)

In Rs Mn Fy Basis 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 31-Mar-32 Interest capitalised 86.71 74.63 ------

IDC in Quarterly Basis in Rs Mn Quarters 30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 Financial Charges from CF 14.09 20.35 24.38 27.89 34.44 40.19 40.19 40.19 40.19 40.19 39.39 38.59 36.98 35.37 32.96 30.55 Interest to be charge in P&L ------40.19 40.19 40.19 40.19 39.39 38.59 36.98 35.37 32.96 30.55 IDC 14.09 20.35 24.38 27.89 34.44 40.19 ------

IDC in Quarterly Basis in Rs Mn 30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-23 30-Jun-23 30-Sep-23 Quarters 27.33 24.12 20.10 16.08 11.25 5.63 ------Financial Charges from CF 27.33 24.12 20.10 16.08 11.25 5.63 ------Interest to be charge in P&L ------IDC

1 Annexure 7.2 Debt Service Coverage Ratio (DSCR) DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubacherla Forest Block RP008 rev. 0

Annexure 7.2 Debt Service Coverage Ratio

DSCR Calculation 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 PAT - 132.62 310.01 461.79 625.04 456.39 2.00 2.50 2.96 3.34 Interst - 80.39 158.36 135.85 87.62 16.88 - - - - Amortisation of expenses 7.12 57.57 97.12 92.33 87.85 83.66 79.73 76.05 72.60 69.36 Deferred Tax - 18.99 14.15 (5.69) (4.88) (4.19) (3.59) (3.07) (2.62) (2.23) Total Cash flow 7.12 289.57 579.64 684.29 795.63 552.74 78.14 75.48 72.93 70.47

Debt Obligation repayment - - 53.59 267.96 482.32 535.91 - - - - interest - 80.39 158.36 135.85 87.62 16.88 - - - - Total Debt Obligation - 80.39 211.95 403.81 569.94 552.79 - - - -

Overall DSCR 1.60 ------Min DSCR 1.00 - 3.60 2.73 1.69 1.40 1.00 - - - -

2 Annexure 7.3 Profitability Statement DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubacherla Forest Block RP008 rev. 0

Annexure 7.3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Profitability statement In Rs Millions Revenues 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 FY 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 31-Mar-32 No of Operating Months - - 6.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00

Non Refundable Deposits ------Processing Area - - 309.84 647.47 813.81 996.92 664.61 ------Commercial Area ------Residential Area ------Maintenance charges ------Processing Area - - 2.59 14.60 31.65 52.77 74.48 81.21 85.27 89.54 94.02 98.72 103.65 108.83 114.28 119.99 125.99 Commercial Area ------Residential Area ------Total revenue - - 312.43 662.07 845.46 1,049.68 739.09 81.21 85.27 89.54 94.02 98.72 103.65 108.83 114.28 119.99 125.99 ------Expenses ------Administative expenses - - 8.34 17.30 18.17 19.08 20.03 21.03 22.08 23.19 24.35 25.56 26.84 28.18 29.59 31.07 32.63 Operation and Maintenance including marketing expenses - - 20.85 43.26 45.42 47.69 50.07 52.58 55.21 57.97 60.87 63.91 67.10 70.46 73.98 77.68 81.57 Insurance premium - - 6.52 12.33 11.45 10.63 9.88 9.19 8.55 7.97 7.42 6.92 6.46 6.03 5.63 5.26 4.92 Land lease rent to Sponsorer ------Total expenses - - 35.71 72.89 75.03 77.40 79.99 82.80 85.84 89.12 92.63 96.39 100.40 104.67 109.20 114.01 119.11 ------PBDIT - - 276.72 589.19 770.42 972.28 659.11 (1.59) (0.57) 0.42 1.38 2.32 3.25 4.16 5.07 5.98 6.88 Depreciation - - 43.34 82.88 78.10 73.62 69.42 65.49 61.81 58.36 55.13 52.10 49.25 46.58 44.07 41.72 39.51 Amortisation of Land Leasehold - - 7.12 14.24 14.24 14.24 14.24 14.24 14.24 14.24 14.24 14.24 14.24 14.24 14.24 14.24 14.24 PBIT - - 226.26 492.07 678.09 884.43 575.45 (81.32) (76.62) (72.18) (67.98) (64.01) (60.24) (56.65) (53.24) (49.98) (46.86)

Financial Charges - - 80.39 158.36 135.85 87.62 16.88 ------

PBT - - 196.33 430.82 634.57 884.66 642.23 (1.59) (0.57) 0.42 1.38 2.32 3.25 4.16 5.07 5.98 6.88

Income Tax - - 44.72 106.66 178.47 264.51 190.03 - - 0.08 0.28 0.46 0.65 0.83 1.01 1.20 1.38 Deffered Tax - - 18.99 14.15 (5.69) (4.88) (4.19) (3.59) (3.07) (2.62) (2.23) (1.90) (1.61) (4.16) (5.07) (5.98) (6.88)

PAT - - 132.62 310.01 461.79 625.04 456.39 2.00 2.50 2.96 3.34 3.76 4.21 7.50 9.13 10.76 12.38

2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 FY 31-Mar-33 31-Mar-34 31-Mar-35 31-Mar-36 31-Mar-37 31-Mar-38 31-Mar-39 31-Mar-40 31-Mar-41 31-Mar-42 31-Mar-43 31-Mar-44 31-Mar-45 31-Mar-46 31-Mar-47 No of Operating Months 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 -

Sales Realisation ------Processing Area ------Commercial Area ------Residential Area ------Non Refundable Deposits ------Processing Area ------Commercial Area ------Residential Area ------Maintenance charges ------Processing Area 132.29 138.90 145.85 153.14 160.80 168.84 177.28 186.14 195.45 205.22 215.49 226.26 237.57 249.45 - Commercial Area ------Residential Area ------Total revenue 132.29 138.90 145.85 153.14 160.80 168.84 177.28 186.14 195.45 205.22 215.49 226.26 237.57 249.45 - Expenses ------Land amortised ------Construction cost ------Administative expenses 34.26 35.97 37.77 39.66 41.64 43.72 45.91 48.20 50.61 53.14 55.80 58.59 61.52 70.18 - Operation and Maintenance including marketing expenses 85.64 89.93 94.42 99.14 104.10 109.31 114.77 120.51 126.53 132.86 139.50 146.48 153.80 175.45 - Insurance premium 4.60 4.31 4.03 3.78 3.54 3.32 3.12 2.93 2.75 2.58 2.43 2.28 2.15 2.02 - Land lease rent to Sponsorer ------Total expenses 124.50 130.20 136.22 142.58 149.28 156.35 163.80 171.64 179.90 188.59 197.73 207.35 217.47 247.65 -

PBDIT 7.79 8.70 9.62 10.56 11.51 12.49 13.48 14.50 15.55 16.64 17.75 18.91 20.10 1.80 - Depreciation 37.43 35.47 33.63 31.90 30.27 28.75 27.30 25.94 24.66 23.45 22.32 21.23 20.22 19.26 - Amortisation of Land Leasehold 14.24 14.24 14.24 14.24 14.24 14.24 14.24 14.24 14.24 14.24 14.24 14.24 14.24 14.24 - PBIT (43.88) (41.01) (38.24) (35.58) (32.99) (30.49) (28.05) (25.68) (23.34) (21.05) (18.80) (16.56) (14.36) (31.70) -

Financial Charges ------

PBT 7.79 8.70 9.62 10.56 11.51 12.49 13.48 14.50 15.55 16.64 17.75 18.91 20.10 1.80 -

Income Tax 1.56 1.74 1.93 2.11 2.30 2.50 2.70 8.50 8.93 9.34 9.73 10.10 10.48 4.51 - Deffered Tax (7.79) (8.70) (9.62) (10.56) (11.51) (12.49) (13.48) (14.50) (15.55) (16.64) (17.75) (18.91) (20.10) (1.80) -

PAT 14.01 15.66 17.32 19.01 20.73 22.48 24.27 20.51 22.18 23.93 25.78 27.71 29.72 (0.90) -

3 Annexure 7.4 Cash Flow statement

DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubacherla Forest Block RP008 rev. 0

Annexure 7.4 In Rs Mn Cash Flow statement 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 31-Mar-32 Inflows ------Promoter's contribution 614.37 277.60 ------Un secured loan ------Grant from GOI ------Sales receipts gross ------Non Refundable Deposit - 309.84 647.47 813.81 996.92 664.61 ------Lease Deposit ------Lease receipts - 2.59 14.60 31.65 52.77 74.48 81.21 85.27 89.54 94.02 98.72 103.65 108.83 114.28 119.99 125.99 Deferred Tax liability - 14.11 10.96 (4.86) (4.40) (3.64) (183.93) (413.53) 451.76 109.98 52.38 29.88 56.65 53.24 49.98 46.86 Total Inflow 614.37 604.14 673.04 840.59 1,045.28 735.45 (102.72) (328.25) 541.30 203.99 151.09 133.53 165.49 167.51 169.97 172.85

Outflow ------Land 405.74 ------Construction 1,039.83 653.17 ------Administrative expenses 3.34 11.99 17.30 18.17 19.08 20.03 21.03 22.08 23.19 24.35 25.56 26.84 28.18 29.59 31.07 32.63 Operation and Maintenance + Marketing 8.34 29.98 43.26 45.42 47.69 50.07 52.58 55.21 57.97 60.87 63.91 67.10 70.46 73.98 77.68 81.57 Marketing Expenses ------Insurance Premium - 6.52 12.33 11.45 10.63 9.88 9.19 8.55 7.97 7.42 6.92 6.46 6.03 5.63 5.26 4.92 Interest on term loan 86.71 155.02 158.36 135.85 87.62 16.88 ------Interest on unsec loans ------Repayment of quasi equity ------Income Tax - 33.23 82.62 152.50 238.24 171.52 ------Land lease rent to Sponsorer ------Total outflow 1,543.95 889.91 313.87 363.39 403.26 268.39 82.80 85.84 89.12 92.63 96.39 100.40 104.67 109.20 114.01 119.11

Bank Loan ------Opening Balance - (0.00) 124.42 430.00 639.25 798.96 730.11 544.59 130.49 582.68 694.04 748.74 781.86 842.68 900.99 956.95 Monthly Surplus / (Deficit) (929.58) (285.77) 359.17 477.21 642.02 467.06 (185.52) (414.09) 452.18 111.36 54.70 33.13 60.82 58.31 55.96 53.74 Cumulative Cash (929.58) (285.77) 483.59 907.21 1,281.28 1,266.02 544.59 130.49 582.68 694.04 748.74 781.86 842.68 900.99 956.95 1,010.69 Loan from Bank 929.58 410.19 ------Repayment of bank loan - - 53.59 267.96 482.32 535.91 ------Cumulative loan 929.58 1,339.78 1,286.19 1,018.23 535.91 ------Closing Balance (0.00) 124.42 430.00 639.25 798.96 730.11 544.59 130.49 582.68 694.04 748.74 781.86 842.68 900.99 956.95 1,010.69

FY 31-Mar-33 31-Mar-34 31-Mar-35 31-Mar-36 31-Mar-37 31-Mar-38 31-Mar-39 31-Mar-40 31-Mar-41 31-Mar-42 31-Mar-43 31-Mar-44 31-Mar-45 31-Mar-46 31-Mar-47 Inflows ------Promoter's contribution ------Un secured loan ------Grant from GOI ------Sales receipts gross ------Non Refundable Deposit ------Lease Deposit ------Lease receipts 132.29 138.90 145.85 153.14 160.80 168.84 177.28 186.14 195.45 205.22 215.49 226.26 237.57 249.45 - Deferred Tax liability 43.88 41.01 38.24 35.58 32.99 30.49 28.05 25.68 23.34 21.05 18.80 16.56 14.36 31.70 - Total Inflow 176.16 179.91 184.09 188.72 193.79 199.33 205.33 211.82 218.79 226.28 234.29 242.82 251.93 281.15 -

Outflow ------Land ------Construction ------Administrative expenses 34.26 35.97 37.77 39.66 41.64 43.72 45.91 48.20 50.61 53.14 55.80 58.59 61.52 70.18 - Operation and Maintenance + Marketing 85.64 89.93 94.42 99.14 104.10 109.31 114.77 120.51 126.53 132.86 139.50 146.48 153.80 175.45 - Marketing Expenses ------Insurance Premium 4.60 4.31 4.03 3.78 3.54 3.32 3.12 2.93 2.75 2.58 2.43 2.28 2.15 2.02 - Interest on term loan ------Interest on unsec loans ------Repayment of quasi equity ------Income Tax ------Land lease rent to Sponsorer ------Total outflow 124.50 130.20 136.22 142.58 149.28 156.35 163.80 171.64 179.90 188.59 197.73 207.35 217.47 247.65 -

Bank Loan ------Opening Balance 1,010.69 1,062.35 1,112.06 1,159.92 1,206.06 1,250.57 1,293.55 1,335.09 1,375.27 1,414.17 1,451.86 1,488.41 1,523.88 1,558.34 1,591.84 Monthly Surplus / (Deficit) 51.66 49.71 47.87 46.14 44.51 42.98 41.54 40.18 38.90 37.69 36.55 35.47 34.46 33.50 - Cumulative Cash 1,062.35 1,112.06 1,159.92 1,206.06 1,250.57 1,293.55 1,335.09 1,375.27 1,414.17 1,451.86 1,488.41 1,523.88 1,558.34 1,591.84 1,591.84 Loan from Bank ------Repayment of bank loan ------Cumulative loan ------Closing Balance 1,062.35 1,112.06 1,159.92 1,206.06 1,250.57 1,293.55 1,335.09 1,375.27 1,414.17 1,451.86 1,488.41 1,523.88 1,558.34 1,591.84 1,591.84

4 Annexure 7.5 Balance Sheet

DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubacherla Forest Block RP008 rev. 0

Annexure 7.5 In Rs Mn Balance sheet 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 31-Mar-32

Liabilities ------Equity 614.37 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 Reserves & Surplus - 112.65 363.74 753.48 1,312.05 1,699.09 1,617.78 1,541.16 1,468.98 1,401.00 1,336.99 1,276.75 1,220.10 1,166.87 1,116.88 1,070.02 Total Owners fund 614.37 1,004.61 1,255.70 1,645.44 2,204.01 2,591.06 2,509.74 2,433.12 2,360.95 2,292.96 2,228.95 2,168.72 2,112.07 2,058.83 2,008.85 1,961.98 Unsecured Loan ------Grant from GOI ------Secured Loan 929.58 1,339.78 1,286.19 1,018.23 535.91 ------Lease Deposits ------Deferred Tax Liability - 14.11 25.07 20.21 15.81 12.16 (171.77) (585.29) (133.53) (23.55) 28.82 58.70 115.35 168.59 218.57 265.43 ------Total Liabilities 1,543.95 2,358.50 2,566.96 2,683.88 2,755.73 2,603.22 2,337.97 1,847.83 2,227.41 2,269.41 2,257.78 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42

Assets ------Gross Fixed Assets 1,543.95 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 Deletion ------Depreciation - 50.45 147.57 239.91 327.76 411.42 491.15 567.20 639.79 709.16 775.49 838.98 899.79 958.10 1,014.06 1,067.80 Net Fixed Assets 1,543.95 2,234.08 2,136.96 2,044.62 1,956.77 1,873.11 1,793.38 1,717.34 1,644.74 1,575.37 1,509.04 1,445.55 1,384.74 1,326.43 1,270.47 1,216.73 ------Cash balance - 124.42 430.00 639.25 798.96 730.11 544.59 130.49 582.68 694.04 748.74 781.86 842.68 900.99 956.95 1,010.69 ------Total Assets 1,543.95 2,358.50 2,566.96 2,683.88 2,755.73 2,603.22 2,337.97 1,847.83 2,227.41 2,269.41 2,257.78 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42

FY 31-Mar-33 31-Mar-34 31-Mar-35 31-Mar-36 31-Mar-37 31-Mar-38 31-Mar-39 31-Mar-40 31-Mar-41 31-Mar-42 31-Mar-43 31-Mar-44 31-Mar-45 31-Mar-46 31-Mar-47

Liabilities ------Equity 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 891.96 Reserves & Surplus 1,026.15 985.14 946.90 911.32 878.33 847.83 819.78 794.10 770.76 749.70 730.90 714.34 699.98 668.29 668.29 Total Owners fund 1,918.11 1,877.10 1,838.86 1,803.28 1,770.29 1,739.79 1,711.74 1,686.06 1,662.72 1,641.67 1,622.87 1,606.30 1,591.95 1,560.25 1,560.25 Unsecured Loan ------Grant from GOI ------Secured Loan ------Lease Deposits ------Deferred Tax Liability 309.31 350.31 388.56 424.13 457.13 487.62 515.68 541.35 564.70 585.75 604.55 621.11 635.47 667.17 667.17 ------Total Liabilities 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42

Assets ------Gross Fixed Assets 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 2,284.53 Deletion ------Depreciation 1,119.46 1,169.17 1,217.04 1,263.18 1,307.69 1,350.67 1,392.21 1,432.39 1,471.28 1,508.97 1,545.53 1,580.99 1,615.45 1,648.95 1,648.95 Net Fixed Assets 1,165.07 1,115.36 1,067.49 1,021.36 976.85 933.86 892.33 852.15 813.25 775.56 739.01 703.54 669.08 635.58 635.58 ------Cash balance 1,062.35 1,112.06 1,159.93 1,206.06 1,250.57 1,293.55 1,335.09 1,375.27 1,414.17 1,451.86 1,488.41 1,523.88 1,558.34 1,591.84 1,591.84 ------Total Assets 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42 2,227.42

5 Annexure 7.6 IRR Calculation DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Dubacherla Forest Block RP008 rev. 0

Annexure 7.6 IRR Calculation (All figures in Rs Mn) Period 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 31-Mar-32 Project IRR (Pre tax) ------Capex (1,445.57) (653.17) ------Inflows ------PAT - 132.62 310.01 461.79 625.04 456.39 2.00 2.50 2.96 3.34 3.76 4.21 7.50 9.13 10.76 12.38 depreciation+ Amortisation - 50.45 97.12 92.33 87.85 83.66 79.73 76.05 72.60 69.36 66.33 63.49 60.82 58.31 55.96 53.74 Interest and Tax benefit from Debt component - 54.30 106.97 91.77 59.19 11.40 ------Net inflow post tax (1,445.57) (415.79) 514.11 645.90 772.08 551.45 81.73 78.55 75.56 72.70 70.09 67.70 68.31 67.44 66.71 66.12 Tax - 63.71 120.81 172.78 259.62 185.84 (3.59) (3.07) (2.54) (1.96) (1.44) (0.96) (3.33) (4.06) (4.78) (5.50) Pre tax Cash flow (1,445.57) (352.08) 634.92 818.67 1,031.70 737.29 78.14 75.48 73.02 70.75 68.66 66.74 64.98 63.38 61.93 60.62 Pre Tax IRR 21.96% ------Post Tax IRR 14.25% ------

Period 31-Mar-33 31-Mar-34 31-Mar-35 31-Mar-36 31-Mar-37 31-Mar-38 31-Mar-39 31-Mar-40 31-Mar-41 31-Mar-42 31-Mar-43 31-Mar-44 31-Mar-45 31-Mar-46 31-Mar-47 Project IRR (Pre tax) ------Capex ------Inflows ------PAT 14.01 15.66 17.32 19.01 20.73 22.48 24.27 20.51 22.18 23.93 25.78 27.71 29.72 (0.90) - depreciation+ Amortisation 51.66 49.71 47.87 46.14 44.51 42.98 41.54 40.18 38.90 37.69 36.55 35.47 34.46 33.50 - Interest and Tax benefit from Debt component ------Net inflow post tax 65.68 65.37 65.19 65.15 65.24 65.46 65.81 60.69 61.07 61.62 62.33 63.18 64.18 32.59 - Tax (6.23) (6.96) (7.70) (8.45) (9.21) (9.99) (10.79) (6.00) (6.62) (7.30) (8.02) (8.80) (9.62) 2.70 - 59.45 58.41 57.49 56.70 56.02 55.47 55.02 54.69 54.45 54.33 54.30 54.37 54.56 35.30 ------

Equity IRR Period 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 31-Mar-32 ------PAT - 132.62 310.01 461.79 625.04 456.39 2.00 2.50 2.96 3.34 3.76 4.21 7.50 9.13 10.76 12.38 Add Depreciation+ Amortisation - 50.45 97.12 92.33 87.85 83.66 79.73 76.05 72.60 69.36 66.33 63.49 60.82 58.31 55.96 53.74 Add Deferred tax liability - 18.99 14.15 (5.69) (4.88) (4.19) (3.59) (3.07) (2.62) (2.23) (1.90) (1.61) (4.16) (5.07) (5.98) (6.88) Less :Equity 614.37 277.60 ------Less : Senior debt Repayment - - 53.59 267.96 482.32 535.91 ------FCFE (Free Cashflow to Equity Holders) (614.37) (75.53) 367.69 280.48 225.69 (0.05) 78.14 75.48 72.93 70.47 68.19 66.08 64.15 62.37 60.74 59.25 Equity IRR 19.33%

Period 31-Mar-33 31-Mar-34 31-Mar-35 31-Mar-36 31-Mar-37 31-Mar-38 31-Mar-39 31-Mar-40 31-Mar-41 31-Mar-42 31-Mar-43 31-Mar-44 31-Mar-45 31-Mar-46 31-Mar-47 ------PAT 14.01 15.66 17.32 19.01 20.73 22.48 24.27 20.51 22.18 23.93 25.78 27.71 29.72 (0.90) - Add Depreciation+ Amortisation 51.66 49.71 47.87 46.14 44.51 42.98 41.54 40.18 38.90 37.69 36.55 35.47 34.46 33.50 - Add Deferred tax liability (7.79) (8.70) (9.62) (10.56) (11.51) (12.49) (13.48) (14.50) (15.55) (16.64) (17.75) (18.91) (20.10) (1.80) - Less :Equity ------Less : Senior debt Repayment ------FCFE (Free Cashflow to Equity Holders) 57.89 56.66 55.57 54.59 53.72 52.97 52.32 46.18 45.52 44.99 44.58 44.27 44.08 30.79 -

6 L&T INFRASTRUCTURE ENGINEERING LIMITED (Formerly known as L&T-Ramboll Consulting Engineers Limited) 6-3-1192/1/1, 5th Floor, Block No.3 White House, Kundan Bagh, Begumpet, Hyderabad – 500 016 Ph: 91-040 – 40354444; Fax: 91-040-40354430, Web: www.lntiel.com