FFIINNAALL RREEPPOORRTT OONN VVAALLUUAATTIIOONN OOFF LLAANNDD UUNNDDEERR VVIISSAAKKHHAAPPAATTNNAAMM PPOORRTT TTRRUUSSTT,, AATT VVIISSAAKKHHAAPPAATTNNAAMM,, AANNDDHHRRAA PPRRAADDEESSHH,,

OWNED BY

VISAKHAPATNAM PORT TRUST

Mumbai, India, March 2018

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 2

1.1 SCOPE OF WORK 2 1.2 OVERVIEW 2 1.3 PROCESS FLOW 2 1.4 SUBJECT ASSET 3 1.5 VALUATION APPROACH AND METHODOLOGY 4 1.6 SUMMARY 7

2. INTRODUCTION 10

2.1 INSTRUCTION 10 2.2 DATE OF INSPECTION 10 2.3 DATE OF VALUATION 10 2.4 PURPOSE OF VALUATION 10

3. VALUATION APPROACH & METHODOLOGY 11

3.1 VALUATION APPROACH 11 3.2 VALUATION METHODOLOGY 13

4. ABOUT VISAKHAPATNAM PORT TRUST 17

4.1 INTRODUCTION 17 4.2 HISTORY 18 4.3 CONSTRUCTION FEATURES OF PORT 18 4.4 LOGISTICS 18 4.5 HANDLING FACILITIES 18 4.6 HARBOUR FACILITIES 20 4.7 BERTHING FACILITY 21 4.8 SOCIAL MEASURES 22

5. SUBJECT ASSETS 23

5.1 LOCATION 23 5.2 AREA SCHEDULE 23 5.3 ZONE DESCRIPTION AND VALUATION 24

6. SUMMARY 86

ANNEXURE A – ASSUMPTIONS AND LIMITING CONDITIONS

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Date: 17th March 2018 1. EXECUTIVE SUMMARY

1.1 SCOPE OF WORK Assessment of fair market value of land situated at 12 zones of VPT falling under 28 different villages of Visakhapatnam (Urban & Rural), Gajuwaka, Parwada and Bheemili mandals, Visakhapatnam district of Andhra Pradesh state for the quinquennium period 2018-2023.

1.2 OVERVIEW • Kanti Karamsey & Company, a firm of Govt. Registered Valuers; has been appointed by Visakhapatnam Port Trust (VPT), for Assessment of fair market value of land of the fixed assets i.e. a total of 7618 acres of land area of VPT, situated at 12 zones of VPT falling under 28 different villages of Visakhapatnam (Urban & Rural), Gajuwaka, Parwada and Bheemili mandals, Visakhapatnam district of Andhra Pradesh state. • It is understood that the purpose of this assignment is to aid VPT revise their Schedule of Rates (SOR) for the quinquennium period 2018- 2023. • In order to assess the Market Value of each of the zone, a detailed market research and prevailing circle rates for each of the zone, the current occupants and the nature of their business / activity, balance/ surplus land available for lease has been considered to arrive at a Market Value for the land.

1.3 PROCESS FLOW

A. DATA COLLECTION Following data/ information was provided by VPT a) Final zonal plan map b) Proposed land use plan 2020 map c) General layout of village wise survey number d) VPT-Schedule of rates-2013 till 2018 for 12 zones e) Statement showing the zone-wise market values fixed per sq. yd for the V.P.T lands for quinquennium 2018-2023 by Joint Collector, Visakhapatnam. f) Analysis of the Highest accepted tender-cum-auction rates for each zone as provided by VPT.

B. SITE VISIT Conducted between 29.01.2018 to 05.02.2018 by Mr. Kunal Vikamsey (Government Registered Valuer), Mr. Sandeep Gage (Civil Engineer) and Mr. Shem Joash Mathews (Civil Engineer) in the presence of Mr. Subba rao (Junior Engineer, VPT), Mr. V Kondal Rao (Deputy Surveyor, VPT) and Mr. Raju (Senior Land Guard, VPT).

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C. MARKET RESEARCH AND DATA ANALYSIS

• A detailed market research in the micro market abutting each zone was undertaken to understand the prevailing market trends and rates for land under residential, commercial and industrial. • Review at the office of the sub-registrar was undertaken to establish the rate of land as per recorded transactions in each zone. • The Development Control Regulation / Building Byelaws of VUDA were studies to establish the permissible FAR (Floor Area Ratio) in each of the micro market abutting the respective zone.

1.4 SUBJECT ASSET Location Geographically spread across 12 different zones falling in 28 villages of Visakhapatnam (Urban), Visakhapatnam (Rural), Lankepalam village in Parwada Mandal and Mulakudu village in Bheemli mandal in Andhra Pradesh state. Where the first 10 zones lies at a radius of 8 to 10 kms of Vishakhapatnam city and zone 10 & 11 lies in Lankepalam and Mulakudu village which is approx. 30 km away from Visakhapatnam.

Area Schedule Totally admeasuring 7,618 acres land which is divided into 12 different zones spread across 28 villages, Mentioned in the next slide is the zone wise division of land present in 28 villages along with the respective mandals derived through zonal plan as provided by VPT.

Tabulated below is the list of zones with respective villages and mandal and area:

Zone Village Mandal Land Area in Acres Kancharaplem VSP Urban 1A 1370 Kancharapalem ( Ward) VSP Urban 1B Kancharapalem VSP Urban 185 Fort Ward VSP Urban 2 152 Seet Rama Swami Temple VSP Urban Dolphin Nose Hill Gajuwaka 3 924 Malkapuram VSP Urban Gullalapalem VSP Urban Malkapuram VSP Urban Kapparada VSP Urban 4 2498 Mulagada Gajuwaka Mindi Gajuwaka Akkireddipalem Gajuwaka 5 Buchiraju Palem VSP Urban 747

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Zone Village Mandal Land Area in Acres Kapparada VSP Urban Mindi Gajuwaka Buchiraju Palem VSP Urban Gopalpatnam VSP Rural Akkireddipalem Gajuwaka 6 816 Tungalam(Nathyyapalem) Gajuwaka Venkatapathi Raju Peta Gajuwaka Pullam Botla Palem VSP Rural Buchiraju Palem VSP Urban 7 30 Maripalem VSP Urban Allipuram Ext Ward VSP Urban Dondaparthi Ward VSP Urban 8 269 Adavivaram VSP Rural Kancharapalem ( Ward) VSP Urban Harbour Park(Waltair Ward) VSP Urban 9 32 Maharanipeta Ward( Block No 4) VSP Urban 10 Mulakuddu Bhimunipatnam 307 11 Lankelapalem Parawada Mandal 288

1.5 VALUATION APPROACH AND METHODOLOGY For the purpose of assessment of Market Value of the subject land of VPT, Market Approach as has been adopted.

Market Approach (Direct Comparison Method):

The Direct Comparison Method involves a comparison of the subject property to same or similar properties that have actually sold in arms–length transactions or are offered for sale. During the course of market research following market data points have been sourced:

a) Review of the transactions registered in Sub-Registrar office.

b) Circle rate/Guideline value/Ready Reckoner rates as per Department of Stamps and Revenue Government of Andhra Pradesh for the corresponding villages for each of the 12 zones of VPT.

c) APIIC land rates at Autonagar, Visakhapatnam for Industrial land.

y Data analysis and Value working: For arriving at the value for different zones we have considered suitable premiums and discounts on the prevailing circle rate and rates provided by Joint Collector Visakhapatnam for land zoned for residential and commercial. Whereas for land zoned for Industrial, the APIIC land allotment rate at Autonagar (which is within 2 to 3 kms radius of majority of the zones of VPT) at Visakhapatnam has been considered as a base

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To these base rates following premium /discounts have been allocated for the following factors:

a. General Factors: • 30% discount for Large Extent of VPT land (since the land being allotted by VPT run into multiple acres of land area as compared to the transactions/ circle rate- which is for a per sq. yd. area) • 25% discount for leasehold nature of VPT land (since the tenure of land being leased by VPT is for 30 yrs. lease period, with only leasehold rights on the VPT land) • 20% discount for present FAR of 1.00 on VPT land (since as per the Building bye laws of Visakhapatnam Urban Development Authority – VUDA the permissible FAR ranges between approximately 1.25 to 2.5 for residential and commercial land in Visakhpatnam city).

b. Zone specific Factors: • Premiums ranging between 5% to 15% towards connectivity, infrastructure, location • Discount ranging between 5% to 10% towards height restrictions, development restrictions due to proximity to mangroves and Meghadri Channel, undeveloped nature of land, etc. Reference for considering the above mentioned factors is as per Guidelines for Immovable Properties 2009 as per Director of Income tax for valuation of land, as well as the Internationally accepted Valuation Standards.

Further, during the course of the assignment a review of the Highest accepted tender-cum- auction rates on the VPT land various zones were studied. It was observed that only a handful of tenders/ auctions carried out in the last past three years are for different sizes of plots for setting up of warehousing, garage and cold storage purposes. The rate determined through tenders is basically depended on the factors such as availability of infrastructure such as rail and road connectivity and those are all developed land which can be treated as premium for the plots specifically and the prices determined through the tender mainly depends on the essential factors like demand and supply, purpose, size of the plot.

Therefore the rates determined for specific plot through tender don’t reflect the realistic value of the remaining land of the zone. As the proposed rates of SOR are applicable throughout the zone for all the of plots of different sizes, different nature of uses, developed/ undeveloped, connectivity etc, the rates discovered through tender cum auction for these five plots cannot be considered as these are applicable for the transactions for equal size of land parcels and

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similar usage of land and their characteristics. Those 5 plots of land including their specific characteristics are discussed below:

• In Zone 4, the Highest accepted tender-cum-auction rate per sq. yd. by M/S Srivalli Shipping and Transport Ltd for 10.4 acres for purpose of development of Container Freight Station and storage facility is Rs 4,390 per sq. yd. In case of Zone-5 the Highest accepted tender- cum-auction rate per sq. yd. was quoted by M/S Rain CII Carbon (Vizag Ltd) for area of 6.72 acres for purpose of development of covered storage facility/ warehousing for processing of cargo is Rs 3,428 per sq. yd. And in Zone-6 Highest accepted tender-cum- auction rate per sq. yd. is quoted by M/S Gateway East India Pvt ltd for area of 4.5 acres for purpose of development of covered storage facility/ warehousing for processing of cargo is Rs. 4,668 per sq. yd.

• In zone-4, M/S Srivalli Shipping and Transport ltd have obtained 10.4 acres of land at Rs. 4,390 per sq. yd. which is already developed land and having rail connectivity and thus they can offer to pay premium for the land. And this factor may not be applicable for rest of the land in zone-4 hence this rate may not be applicable for entire zone over the prevailing schedule of rates.

• In zone-5, M/S Rain CII Carbon (Vizag Ltd) have obtained 6.72 acres of land at Rs. 3,428 per sq. yd. and this land is located contiguous to their existing lease hold land. This additional land, the bidder necessarily required for their expansion project, which cannot be equated for other pieces of land, and thus the bidder can afford to pay premium to take that contiguous land. And this factor may not be applicable for rest of the land in zone-5 hence this rate may not be applicable for entire zone over the prevailing schedule of rates.

• In zone-6, M/S Gateway East India Pvt ltd have obtained 4.5 acres of land at Rs. 4,668 per sq. yd. and this land is located contiguous to their existing lease hold land. This additional land, the bidder necessarily required for their expansion project, which cannot be equated for other pieces of land, and thus the bidder can afford to pay premium to take that contiguous land. And this factor may not be applicable for rest of the land in zone-6, hence this rate may not be applicable for entire zone over the prevailing schedule of rates

As per Land Policy Guidelines for Major Ports, for establishing the land rates, factor of Highest accepted tender cum auction rate also has to be considered. But the Highest accepted tender cum auction rate was found to be 50% to 70% higher than the existing Schedule of Rates for 2018, for some specific reasons attached to those pieces of lands the said highest rate thus cannot be imitated for rest of the lands of the 3 zones, viz., zone 4, 5 & 6. Moreover such

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sudden increase of rate as per the Highest accepted tender cum auction rate can adversely affect the function and operation of the already existing leaseholder of the land. Hence For purpose of establishing fare rates for zone 4, 5 and 6 and after observing the development potential, connectivity and location of the area, and stiff competition from neighbouring ports it is proposed that 10% to 15 % premium on the Schedule of rates as on 31-03-2018 for the zones 4, 5 and 6 and the highest accepted tender cum auction rate for Zone 1A can be considered fair and reasonable.

1.6 SUMMARY A detailed summary of the Market Value for land for residential, commercial and industrial under each of the 12 zones of VPT is as tabulated overleaf alongwith a comparison to the Schedule of Rates considering the escalation from 2013 to 2018 for each of the zones of VPT.

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Schedule of Rates(VPT) in Rs per Schedule of Rates (VPT) in Rs per Sq. Yd. after Proposed value zone wise in Rs per Sq. Area in Zone Location Sq. Yd. for year 2013 2% YOY escalation from 2013 till 2018 yd. for 2018-23 acres R C I R C I R C I

1A Core- Operational area 1370 5,600 10,900 3,520 6,183 12,034 3,886 6,600 12,250 4,236

1B Near Convent Junction 185 7,500 15,000 7,500 8,281 16,561 8,281 8,800 18,000 8,546

2 Fishing Harbour 152 6,800 9,000 4,000 7,508 9,937 4,416 7,700 10,500 4,511

3 Hilly Area 924 2,500 NA 1,900 2,760 NA 2,098 3,000 NA 2,137

4 Industrial area 2498 4,900 7,600 2,350 5,410 8,391 2,595 5,500 8,600 2,984

5 Near Airport area 747 4,700 11,900 2,380 5,189 13,139 2,628 5,563 15,000 3,022

6 Near National Highway 5 816 5,700 18,600 2,850 6,293 20,536 3,147 6,450 21,375 3,619

Near Marripalem railway yard 7 30 4,100 11,900 2,600 4,527 13,139 2,871 4,650 13,800 3,086 away from highway

8 Salgramapuram area 269 20,000 30,000 NA 22,082 33,122 NA 22,588 36,250 2,849

9 Harbour park area 32 36,700 41,700 NA 40,520 46,040 NA 42,000 49,350 3,324

10 Bheemuni patnam area 288 1,300 NA NA 1,435 NA NA 1,464 NA 1,199

11 Lankelapalam area 307 1,700 NA NA 1,877 NA NA 1,915 NA 803

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2. INTRODUCTION

2.1 Instruction Kanti Karamsey & Company, referred as “Govt. Registered Valuers”; has been appointed by Visakhapatnam Port Trust (VPT), for assessment of fair market value of land i.e. a total of 7618 acres of land area of VPT, situated at 12 zones of VPT falling under 28 different villages of Visakhapatnam (Urban & Rural), Gajuwaka, Parwada and Bheemili mandals, Visakhapatnam district of Andhra Pradesh state.

2.2 Date of Inspection The subject land parcels have been visited between 29th January 2018 to 5th February 2018 by a team of engineers from Kanti Karamsey & Co.as follows: • Mr. Kunal Vikamsey (Government Registered Valuer), • Mr. Sandeep Gage (Civil Engineer) • Mr. Shem Joash Mathews (Civil Engineer) in the presence of Mr. Subba rao (Junior Engineer, VPT), Mr. V Kondal Rao (Deputy Surveyor, VPT) and Mr. Raju (Senior Land Guard, VPT).

2.3 Date of Valuation

The Market Value of the subject property is assessed as on 30th January 2018.

2.4 Purpose of Valuation It is understood that the purpose of this assignment is to aid VPT revise their Schedule of Rates (SOR) for the quinquennium period 2018- 2023.

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3. VALUATION APPROACH & METHODOLOGY

3.1 Valuation Approach The objective of the valuation exercise being to assess the Fair Market Value of the land assets of Visakhapatnam Port Trust, in 28 villages of Visakhapatnam, District, Andhra Pradesh between 29th January 2018 to 5th February 2018. This would be achieved by a systematic gathering, classification, and analysis of data, which is required in the development of the following approaches to valuation: Cost Approach, Market Approach/Direct Comparison Approach

Cost Approach

Valuation Market Approach/ Direct Approaches Comparison Approach

Income Approach

♦ Cost Approach This approach consists of estimating the replacement cost of the asset along with all improvements therein, deducting accrued depreciation from all sources. The value derived from this approach is a summation of the various property components contributing to the total property value, and it is applicable when each component is independently measurable, and when the sum of all components is believed to reflect market value.

This approach is commonly used for assets for which appropriate comparative benchmarks are not easily available but historic costs are available as well as replacement / re-instatement costs are available in the open market. Primarily used for financial reporting purposes on company balance sheets as well as for assessing the present worth of the assets for insurance cover, price allocation for each asset, etc.

♦ Market Approach / Direct Comparison Approach The Direct Comparison Approach involves a comparison of the subject property to similar properties that have actually sold in arms–length transactions or are offered for sale. This approach demonstrates what buyers have historically been willing to pay (and

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sellers willing to accept) for similar properties in an open and competitive market and is particularly useful in estimating the value of the land and properties that are typically traded on a unit basis.

The job involves inspection of site, collecting the necessary data from the site and then applying suitable market rate to arrive at the market value. To derive the market rate a general survey is carried out in nearby location to see if any comparable sales have taken place, data collected from the Sub-Registrar’s office also aids in arriving at the market rate of the property.

Influencing factors such as shape, size, quantum of land parcel, location, market and development potential, etc. are some of the criteria adopted in deriving the market value of the land parcel.

♦ Income Approach Income Approach is based on the premise that the asset is an income-producing asset and the value is a function of future benefits and income that could potentially be derived from the asset. This involves determining the highest and best use for the property, keeping in view the zoning regulations and development controls applicable to the property in question.

The Residual Method of valuation is essentially a means of valuing land by reference to its development potential by deducting development costs including demolition cost (if any), foundation cost, superstructure construction cost, professional fees and finance costs, together with developer’s profit and risk, etc. from its estimated Gross Development Value (GDV), which is the aggregate market value of the Property assuming the development was completed as at the date of valuation and sold at prices around date of valuation.

The residual approach involves firstly the assessment of GDV of the property. Estimated total cost of construction of the development including professional fees, plus an allowance for interests and other associated expenditure including developer’s risk and profit are deducted from the GDV. The resultant figure is the residual site value.

In this particular instance, since the purpose for assessing the Fair Market Value of the fixed assets is for the Fair Value Measurement Market Approach has been adopted.

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3.2 Valuation Methodology For the purpose of assessment of Market Value of the subject land of VPT, Market Approach as has been adopted.

Market Approach (Direct Comparison Method):

The Direct Comparison Method involves a comparison of the subject property to same or similar properties that have actually sold in arms–length transactions or are offered for sale. During the course of market research following market data points have been sourced:

d) Review of the transactions registered in Sub-Registrar office.

e) Circle rate/Guideline value/Ready Reckoner rates as per Department of Stamps and Revenue Government of Andhra Pradesh for the corresponding villages for each of the 12 zones of VPT.

f) APIIC land rates at Autonagar, Visakhapatnam for Industrial land.

g) Statement showing the zone-wise market values fixed per sq. yd. for the V.P.T lands for quinquennium 2018-2023 by Joint Collector Visakhapatnam.

h) Analysis of the Highest accepted tender-cum-auction rates for each zone as provided by VPT Collector’s rate.

y Data analysis and Value working: For arriving at the value for different zones we have considered suitable premiums and discounts on the prevailing circle rate published by Department of Stamps and Registration Government of Andhra Pradesh while in the absence of circle rates than the rates provided by Joint Collector Visakhapatnam for VPT land zoned for residential and commercial has been considered. Whereas for land zoned for Industrial, the APIIC land allotment rate at Autonagar (which is within 2 to 3 kms radius of majority of the zones of VPT) at Visakhapatnam has been considered as a base since the collectors rate and igr rates not available for industrial lands

To these base rates following premium /discounts have been allocated for the following factors:

a. General Factors: • Estimated rate of discount of 25 % is applied as the nature of ownership changes in comparison with the freehold land outside and inside VPT boundaries.

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• A discount of 30% is applied to arrive at the rate for the land of VPT as the JSRO rates are for the net plot of lands which is arrived after deduction of this common amenities and facilities. • Suitably adopted a premium of 40 % and 50% on the estimated rate of residential and commercial for having superior location, and development stage for the lands situated in Zone 8 & 9. • Suitably adopted a premium ranging between 5 % to 15 % on the estimated Industrial rate for zones having superior location in terms of public road connectivity and proximity to the city as well as the national highway and a discount ranging between 5% to 15% for zones having undeveloped nature of land, development restrictions and lack of connectivity. • Suitably adopted a discount of 20% on the base line rate of State Govt. considering that the existing Floor area ratio (FAR) of VPT lands in 1.00 and uniformly applied for all Zones.

b. Zone specific Factors: • Premiums ranging between 5% to 15% towards connectivity, infrastructure, location, etc. • Discount ranging between 5% to 10% towards height restrictions, development restrictions due to proximity to mangroves and Meghadri Channel, undeveloped nature of land, etc.

Reference for considering the above mentioned factors is as per Guidelines for Immovable Properties 2009 as per Director of Income tax for valuation of land, as well as the Internationally accepted Valuation Standards.

Further, during the course of the assignment a review of the Highest accepted tender-cum- auction rates on the VPT land various zones were studied. It was observed that only a handful of tenders/ auctions carried out in the last past three years are for different sizes of plots for setting up of warehousing, garage and cold storage purposes. The rate determined through tenders is basically depended on the factors such as availability of infrastructure such as rail and road connectivity and those are all developed land which can be treated as premium for the plots specifically and the prices determined through the tender mainly depends on the essential factors like demand and supply, purpose, size of the plot.

Therefore the rates determined for specific plot through tender don’t reflect the realistic value of the remaining land of the zone. As the proposed rates of SOR are applicable throughout

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the zone for all the of plots of different sizes, different nature of uses, developed/ undeveloped, connectivity etc, the rates discovered through tender cum auction for these five plots cannot be considered as these are applicable for the transactions for equal size of land parcels and similar usage of land and their characteristics. Those 3 plots of land including their specific characteristics are discussed below:

• In Zone 4, the Highest accepted tender-cum-auction rate per sq. yd. by M/S Srivalli Shipping and Transport Ltd for 10.4 acres for purpose of development of Container Freight Station and storage facility is Rs 4,390 per sq.yd. In case of Zone-5 the Highest accepted tender-cum-auction rate per sq.yd was quoted by M/S Rain CII Carbon (Vizag Ltd) for area of 6.72 acres for purpose of development of covered storage facility/ warehousing for processing of cargo is Rs 3,428 per sq.yd. And in Zone-6 Highest accepted tender-cum-auction rate per sq.yd is quoted by M/S Gateway East India Pvt ltd for area of 4.5 acres for purpose of development of covered storage facility/ warehousing for processing of cargo is Rs 4,668 per sq. yd.

• In zone-4, M/S Srivalli Shipping and Transport ltd have obtained 10.4 acres of land at Rs 4,390 per sq.yd which is already developed land and having rail connectivity and thus they can offer to pay premium for the land. And this factor may not be applicable for rest of the land in zone-4 hence this rate may not be applicable for entire zone over the prevailing schedule of rates.

• In zone-5, M/S Rain CII Carbon (Vizag Ltd) have obtained 6.72 acres of land at Rs 3,428 per sq.yd and this land is located contiguous to their existing lease hold land. This additional land, the bidder necessarily required for their expansion project, which cannot be equated for other pieces of land, and thus the bidder can afford to pay premium to take that contiguous land. And this factor may not be applicable for rest of the land in zone-5 hence this rate may not be applicable for entire zone over the prevailing schedule of rates.

• In zone-6, M/S Gateway East India Pvt ltd have obtained 4.5 acres of land at Rs 4, 668 per sq. yd. and this land is located contiguous to their existing lease hold land. This additional land, the bidder necessarily required for their expansion project, which cannot be equated for other pieces of land, and thus the bidder can afford to pay premium to take that contiguous land. And this factor may not be applicable for rest of the land in zone-6, hence this rate may not be applicable for entire zone over the prevailing schedule of rates

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As per Land Policy Guidelines for Major Ports, for establishing the land rates, factor of Highest accepted tender cum auction rate also has to be considered. But the Highest accepted tender cum auction rate was found to be 50% to 70% higher than the existing Schedule of Rates for 2018, for some specific reasons attached to those pieces of lands the said highest rate thus cannot be imitated for rest of the industrial lands of the 3 zones, viz., zone 4, 5 & 6. Moreover such sudden increase of rate as per the Highest accepted tender cum auction rate can adversely affect the function and operation of the already existing leaseholder of the land. Hence for purpose of establishing fare rates for zone 4, 5 and 6 for industrial land and after observing the development potential, connectivity and location of these zones as well as stiff competition from neighbouring ports it is proposed that 10% to 15 % premium on the Schedule of rates as on 31-03-2018 for industrial land in the zones 4, 5 and 6 and the highest accepted tender cum auction rate for industrial land in Zone 1A has been considered fair and reasonable.

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4. ABOUT VISAKHAPATNAM PORT TRUST

4.1 Introduction Visakhapatnam port is one of the leading major ports of India it is situated in Visakhapatnam city of Andhra Pradesh. The Port is located on the east coast of India. The Port has three harbours viz., outer harbour, inner harbour and the fishing harbour. The outer harbour with a water spread of 200 hectares has 6 berths and the inner harbour with a water spread of 100 hectares has 8 berths.

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4.2 History The Port was opened to ocean traffic with the arrival of a passenger vessel on the 7th October, 1933. In the first year of operation, the Port handled traffic of 1.3 lakh tonnes.

4.3 Construction Features of Port 1. The unique feature of the harbour has been the Island Break-water, constructed by scuttling two old ships JANUS and WELLESDON which form the skeleton around which a rubble mound is formed 2. The location of the port is very ideal in the sense that it affords protection from cyclones which strike the east coast regularly, by a high promontory into the sea, known as Dolphin’s Nose Hill which is to the north of the entrance channel. 3. The harbour was constructed by dredging 281.8million cubic ft of land and soft material. 4. It consisted of: Outer channel, inner channel, island breakwater, sand trap, turning basin, quay wall of 1600 ft (3 berths), two transit sheds, three storage sheds, open storage area four electric quay cranes, three NG Locos, one weighbridge, railway track, 15 sq. miles of acquired land and other facilities like, graving dock, dredgers, tugs, lighters, power house, work shop, roads, drains, water supply, buildings etc. 5. The Port was constructed at a cost of Rs.378 lakhs.

4.4 Logistics 1. Port Railways: Railway network at Port of Visakhapatnam is the largest amongst Indian Ports with over 200km rail length.

2. Road network: A Road running within the Port land was commonly being used historically over a long period by the Port Cargo Traffic and the City public between Port area upto NH-5. Realizing the need to ease congestion of the traffic and to provide alternative route including improving the travel time, a Port Connectivity Road from Visakhapatnam Port to NH-5 with a total length of 12.5 km comprising of 4.9 km of Flyovers and Ramps at a total project cost of Rs. 114.00 Crores was developed.

4.5 Handling Facilities 1. Iron Ore & Pellets Functioning of the Mechanical ore handling plant known as ore handling complex comprises of the receiving system and the shipping system. The ore received through wagons is tippled and conveyed to the stacker for stacking in the receiving system. The receiving system consists of three wagons tipplers (one twin wagon tippler of 2700 TPH cap. and another tippler of 3000 TPH capacity) to tipple the wagons. The shipping system reclaims the cargo from the stacks and conveys through the conveyors to the shiploader for

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loading into the ships’ hatches. The system consists of 3 bucket wheel reclaimers 4000 tonnes per hour capacity, a long overhead conveyor system (4.8 kms – one way), a surgebin of 2000 tonnes capacity and a ship loader with an assigned capacity to load iron ore at 8000 tonnes per hour. This ship loader which moves on rails can negotiate a 2100 turn and can dip deep into the hatch of a ship. The loading conveyors (7 nos.) are all overhead conveyors running at about 10 to 12 metres above ground level. The conveyors are supported by means of a pre-cast RCC frames founded on piles. The pre-cast frames are spaced at about 20.0 m c/c, a walkway of 1.0 m wide is also provided alongside of the conveyor for attending to maintenance. The conveyor is designed to run at a speed of 210 mtrs/min

2. Coking Coal facilities A deep draft berth in outer harbour (General-cum-Bulk cargo berth) with a quay Length of 356 meters to handle vessels of draft upto 14.5 meters is avai lable for handling imported coking coal. The berth is capable of handling 10, 000 DWT vessels. 2 floating cranes viz., Bulk Express (4 grabs–2 for loading and 2 for unloading; 7.4 cu.m. to 22.6 cu.m.) and Ravi B (11.5 cu.m. grab capacity) are available at the berth.

In addition, 5 multipurpose berths in inner harbour which can accommodate vessels of 11.0 m draft and 2 Multipurpose B.O.T berths operated by Vizag Seaport Pvt. Ltd., equipped with mechanized handling facilities are available. Other facilities include: 2Nos. Harbour Mobile cranes at WQ berths Open area at West quay berths/East yard dumps – 1.7lakh sq.m. / 4 LT capacity Open area at GCB – 1.5 LT capacity Sidings with loading facility into wagons and well-connected railway lines to GCB and inner harbour.

3. Alumina A fully mechanized facility for loading Alumina is available at the dedicated berth (WQ-5) with 241 meters length and permissible draft up to 11 meters. The facilities available at the berth include: 3 silos of 25,000 tonnes capacity each, Mechanical wagon unloading system (1100 TPH), Conveyor system for loading (2200 TPH)

4. POL A deep draft Oil Tanker Terminal for berthing tankers of size up to 150,000 DWT and draft upto 17 meters is available the facility is equipped with three unloading arms at the terminal direct discharge from berth to the refinery tanks @ 5500 tonnes per hour through pipe lines. Facility available for STS transhipment of crude from VLCC to smaller tankers. An exclusive jetty with draft upto 14 meters is available to discharge LPG. A Cavern facility

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for LPG first of its kind in South Asia – a mined rock Cavern at a depth of 200 mtrs below sea level (capacity: 60,000 T) is available. Two berths in the inner harbour are available for handling petroleum products.

5. Containers A state of art container terminal is being operated by Visakha Container Terminal Pvt. Ltd. The terminal is the deepest terminal of the country with a facility to accommodate main line vessels up to 15 M draft. The terminal has a dedicated rail facility to handle full rake of 45 wagons. The terminal has a potential to handle 5 lakh TEU in future years and is ideally situated to serve as "Container Hub Port" on the East Coast of India.

6. Cargo handling equipment A state of art container terminal is being operated by Visakha Container Terminal Pvt. Ltd. The terminal is the deepest terminal of the country with a facility to accommodate main line vessels up to 15 M draft. The terminal has a dedicated rail facility to handle full rake of 45 wagons. The terminal has a potential to handle 5 lakh TEU in future years and is ideally situated to serve as "Container Hub Port" on the East Coast of India.

Description Capacity Availability in Nos. Electric Wharf Cranes 10T 09 Electric Wharf Cranes 15 T 10 Electric Wharf Cranes 20 T 04 Harbour Mobile Cranes (on hire) 140 T 02 Harbour Mobile Cranes (BOT operator) 104 T 03 Locos ( General Traffic) 1400 HP 08 Locos ( O H C ) 1430 HP 07 Locos (General Traffic) 3100 HP 03 Floating crane (Bheema) 140 T cap 01 Floating crane (Hanuman) 55 T cap 01

4.6 Harbour Facilities Feature Inner Harbour Outer Harbour Water Spread (Hectares) 100 200

Berths 18 6

Max. Draft(Mtrs.) 14.5 18.10

Max. length (Mtrs.) PANAMAX Cape Size

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4.7 Berthing Facility

INNER HARBOUR NORTHERN ARM - EAST SIDE Quay Berths Berth length (Mtrs) Permissible draft (Mtrs) **East Quay-1 280.00 14.50 East Quay-2 - - East Quay-3 167.64 10.06 East Quay-4 231.00 10.06 East Quay-5 167.64 11.00 East Quay-6 182.90 11.00 East Quay-7 255.00 14.50 * East Quay-8 255.00 14.50 * East Quay-9 255.00 14.50 * Awarded to B.O.T. Operator M/s. Vizag Seaport Pvt. Ltd. ** Awarded to M/s Adani Vizag Coal Terminal Pvt., Ltd.,

INNER HARBOUR NORTH WESTERN ARM Quay Berths Berth length (Mtrs) Permissible draft # (Mtrs)

Fertiliser berth 173.13 10.06

Oil Refinery Berth-1@ 183.00 10.06

Oil Refinery Berth-2@ 183.00 9.75

@ Subject to a max. 195 Mts. at one of the two berths

# Permissible draft of vessels is subject to availability of tide - details given under harbour facilities

INNER HARBOUR NORTHERN ARM - WEST SIDE Quay Berths Berth length (Mtrs) Permissible draft # (Mtrs) West Quay-1 212.00 13.00 West Quay-2 226.70 13.00 West Quay-3 201.12 13.00 West Quay-4 243.00 11.00 West Quay-5 241.70 11.00 * West Quay-6 255.00 14.00 RE WQ-1 170.00 11.00 * Awarded to M/s West Quay Multi Port Pvt, Ltd., on DB FOT Basis

OUTER HARBOUR Berth Berth length (Mtrs) Permissible draft # (Mtrs) Ore Berth-1 270.00 16.50 Ore Berth-2 270.00 16.50 *Vizag General Cargo Berth 356.00 18.10 Offshore Tanker Terminal 408.00 17.00 L.P.G. 370.92 14.00 **CONTAINER TERMINAL 451.00 14.50 * Awarded to M/s Vizag General Cargo Berth Pvt.,Ltd., ** Operated byM/s. Visakha Container Terminal Pvt. Ltd.

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4.8 Social Measures 1. City’s Sewage: Major drains originating from the upper reaches of the city are discharging the drainage water at different locations into the Port area before they finally discharge into sea. These reaches of drains in Port area are being maintained regularly by Visakhapatnam Port to ensure free flow of water and to keep clean environment of harbour waters. An annual expenditure of about 70.00 Lakhs is being incurred for maintenance of drains, and culverts etc. 2. Sports and Cultural Complex: In line with the policies of the Government of India for up- liftment of Sports & Cultural developments and keeping in view the interest of the city public. A large Sports complex with various facilities for Sports &Cultural activities was developed by the Port in the early 1990s at a cost about ` 20.00 Crores. This Sports & Cultural Complex was completed in VPT’s own lad of about 45 acres. The complex is provided with an Outdoor Stadium of10, 000 spectators capacity and an Indoor Stadium of 3000 spectators’ capacity, an auditorium of 1400 audience capacity for theatrical performances and Open Air Theatre of 3500 audience capacity including ancillary facilities.

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5. SUBJECT ASSETS 5.1 Location Geographically spread across 12 different zones falling in 28 villages of Visakhapatnam (Urban), Visakhapatnam (Rural), Lankepalam village in Parwada Mandal and Mulakudu village in Bheemli mandal in Andhra Pradesh state. Where the first 10 zones lies at a radius of 8 to 10 kms of Vishakhapatnam city and zone 10 & 11 lies in Lankepalam and Mulakudu village which is approx. 30 km away from Visakhapatnam.

5.2 Area Schedule Totally admeasuring 7,618 acres land which is divided into 12 different zones spread across 28 villages, Mentioned in the next slide is the zone wise division of land present in 28 villages along with the respective mandals derived through zonal plan as provided by VPT.

Tabulated below is the list of zones with respective villages and mandal and area:

ZONE VILLAGE MANDAL LAND AREA (ACRES) Kancharaplem VSP Urban 1A 1370 Kancharapalem ( Ward) VSP Urban 1B Kancharapalem VSP Urban 185 Fort Ward VSP Urban 2 152 Seet Rama Swami Temple VSP Urban Dolphin Nose Hill Gajuwaka 3 924 Malkapuram VSP Urban Gullalapalem VSP Urban Malkapuram VSP Urban Kapparada VSP Urban 4 2498 Mulagada Gajuwaka Mindi Gajuwaka Akkireddipalem Gajuwaka Buchiraju Palem VSP Urban 5 Kapparada VSP Urban 747 Mindi Gajuwaka Buchiraju Palem VSP Urban Gopalpatnam VSP Rural Akkireddipalem Gajuwaka 6 816 Tungalam(Nathyyapalem) Gajuwaka Venkatapathi Raju Peta Gajuwaka Pullam Botla Palem VSP Rural Buchiraju Palem VSP Urban 7 30 Maripalem VSP Urban

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ZONE VILLAGE MANDAL LAND AREA (ACRES) Allipuram Ext Ward VSP Urban Dondaparthi Ward VSP Urban 8 269 Adavivaram VSP Rural Kancharapalem ( Ward) VSP Urban Harbour Park(Waltair Ward) VSP Urban 9 32 Maharanipeta Ward( Block No 4) VSP Urban 10 Mulakuddu Bhimunipatnam 307 11 Lankelapalem Parawada Mandal 288

5.3 Zone Description and Valuation As mentioned earlier the land parcels are present in 12 different zones in 28 villages, following are the zone wise description of the site along with surrounding development, market research, findings ,key features and value working of different zones:

5.3.1 ZONE-1(A)

Source: Final Zonal Plan provided by client.

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ZONE-1(A)

Latitude: 17.710382, Longitude: 83.279493

Observation: Present in the south eastern side of the city and very near to Bay of Bengal, this zone lies in Kancharapalem village of VSP Urban mandal, Visakhapatnam district and totally admeasures 1370 acres. As witnessed during the site inspection the said land parcel is completely developed with proper road connectivity and has railway tracks for purpose of carriage of goods and materials, an inner harbour divides this zone into two different parts.

Mentioned below is the existing development in the zone direction wise: a) To the North of this zone there lies major companies such as Essar Hi-Grade Pellets Ltd, K.R Sons Pvt Ltd, Synergy Shipping Pvt Ltd, along with these, Zone 1(A) has West Quay Multi Port Pvt Ltd’s stockyard, ONGC yard in north and in the north eastern part has a STP plant of GVMC for sewage treatment. b) At the centre of Zone 1(A) land is leased majorly to Essar Vizag Terminal, NALCO and NMDC, also it was observed in the central portion of this zone there is an iron ore plot of nearly 29 acres. c) To the south western part of this zone which is adjacent to the inner harbour, West Ore Berth (Coal Stack yard) is present.

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d) Towards the south eastern part of the zone major development experienced is mostly of administrative building of Visakhapatnam Port Trust, office building of Excise and Customs, along with these, major companies such as Adani and Vedanta has set up for loading and unloading coal. Steel Authority of India with its stackyard and container lies in this part of zone1(A), towards the southern end of this zone, stackyard of Adani, SEW, Vizag General Cargo Berth Pvt Ltd was witness, Harbour police station lies in this part of Zone 1(A), at extreme south of this zone few warehouses are present.

As per observations it can be concluded that there is negligible vacant area in this zone and land is developed as per the usage of industries and administrative buildings hence it can be considered this zone has industrial and official purpose usage.

Surrounding Development: Zone 1A lies in a developed area with One town and Kurpam market is the nearest locality to the east with proper residential and retail development in the vicinity, Gnanapuram, SS nagar and DLS colony are the major development near to Zone 1(A). Located at a distance of 2km from Visakhapatnam Railway station which is nearer to northern part of the zone, and zone 1(A) is approx. 7 km from the Visakhapatnam International Airport.

Market Research: The ready-Reckoner rates of land for residential purpose in Kancharapalem village is Rs.22, 000- per sq.yd for residential land for stamp-duty purposes effective from 01/08/2017 published by government of State of Andhra Pradesh.

Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq.yd by Joint collector Visakhapatnam and Schedule of Rates for 2018.

Schedule of Rates(VPT) in Rs Value in Rs per Sq.Yd set by IGR Values in Rs per Sq.Yd after 2% YOY Joint Collector Location per Sq.Yd escalation from 2013 till Visakhapatnam for VPT 2018 R C R C I R C I

Kacharapalem 22,000 NA 22,000 35,000 NA 6,183 12,034 3,886

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Value Working: In order to arrive at an appropriate land rate for the subject property following influencing factors as mentioned in the Valuation Methodology above have been considered to which suitable premium / discount have been assigned.

Residential

FACTORS Premium / Discount

A Large extent of Land parcel -30% B Limits of VPT and leasehold land -25% C Existing FAR on VPT land(1.00) -20% D Location is suitable as per connectivity to different parts of city 5% E Total Adjustment (A+B+C) -70%

F Base Rate per sq. yd. 22,000 G Total adjustment(E*F) -15,400 Adjusted land Rate for Subject Property (Rs. per sq. yd) (F-G) 6,600

Commercial

FACTORS Premium / Discount

A Large extent of Land parcel -30%

B Limits of VPT and leasehold land -25%

C Existing FAR on VPT land(1.00) -20% D Location suitable due to connectivity to different parts of city 10%

E Total Adjustment (A+B+C+D) -65%

F Base Rate per sq. yd. 35,000

G Total adjustment (E*F) -22,750

Adjusted land Rate for Subject Property (Rs. per sq. yd) (F-G) 12,250

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Industrial

FACTORS Premium / Discount

A Undeveloped land -15%

B Total Adjustment (A+B+C) -15%

C Base Rate per sq. yd. 4,748

D Total adjustment(C*B) -712

F Adjusted land Rate for Subject Property (Rs. per sq. yd) (C-D) 4,036

After observing the development potential, connectivity and location of these zones as well as stiff competition from neighbouring ports it is proposed that the highest accepted tender cum auction rate for industrial land in Zone 1A has been considered fair and reasonable which is Rs 4, 236 per sq.yd.

Summarize below are the proposed rates for the market value of land: Proposed value zone wise in Rs Schedule of Rates(VPT) in Rs per Sq.Yd after 2% per Sq.yd for 2018-23 YOY escalation from 2013 till 2018

R C I R C I

6,600 12,250 4,236* 6,183 12,034 3,886

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Photographs- Zone-1(A)

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5.3.2 Zone 1(B)

ZONE-1(B)

ZONE-1(B)

Latitude: 17.710382, Longitude: 83.279493

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Observation: Similar to Zone 1(B), this zone is also present in the south eastern side of the city and very near to Bay of Bengal, this zone lies in Kancharapalem village of VSP Urban mandal, Visakhapatnam district and totally admeasures 185 acres. Zone 1(B) shares its boundary with Zone 1(A) and is in the eastern part of VPT.

During inspection it was witness that this zone is particularly used for stacking of coal and also presence of conveyor belts and railway tracks for purpose of transportation of materials is prevalent in this zone.

As per observations it can be concluded that there is negligible vacant area in this zone and land is developed as per the usage of industries i.e. for stacking of coal in particular, hence it can be considered this zone has industrial and commercial purpose usage.

Surrounding Development Zone 1(B) lies very close to Dabba Gardens and Gnanapuram which is to its east and Velamepeta and Kabarthata are the nearest residential development which is to the north of this zone. Convent Junction is a known landmark near to this zone. Located at a distance of 1km from Visakhapatnam Railway station which is nearer to northern part of the zone, and zone 1(B) is approx. 7 km from the Visakhapatnam International Airport.

Market Research Whereas the ready-Reckoner rates of land for residential purpose in Kancharapalem village is Rs. 22, 000- per sq. yd. for residential land for stamp-duty purposes effective from 01/08/2017 published by government of State of Andhra Pradesh.

Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq.yd by Joint collector Visakhapatnam and Schedule of Rates for 2018. Schedule of Rates(VPT) in Rs Value in Rs per Sq.Yd set by IGR Values in Rs per Sq.Yd after 2% YOY Location Joint Collector per Sq. Yd. escalation from 2013 till Visakhapatnam for VPT 2018 R C R C I R C I

Kacharapalem 22,000 NA 22,000 35,000 NA 8,281 16,561 8,281

Value Working:

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In order to arrive at an appropriate land rate for the subject property following influencing factors have been considered to which suitable premium / discount have been assigned.

Residential

FACTORS Premium / Discount

A Large extent of land parcel -30% B Limits of VPT and leasehold land -25% C Connectivity with national highway, railway and airport. 15% D Existing FAR on VPT land(1.00) -20% E Total Adjustment (A+B+C+D) -60%

F Base Rate per sq. yd. 22,000 G Total adjustment(E*F) -13,200 Adjusted land Rate for Subject Property (Rs. per sq. yd) (F-G) 8,800

Commercial

FACTORS Premium / Discount

A Large extent of Land parcel -30% B Limits of VPT and leasehold land -25% C Connectivity with national highway and to different parts of 15% D Existing FAR on VPT land(1.00) -20% E Total Adjustment (A+B+C+D) -60%

F Base Rate per sq. yd. 45,000 G Total adjustment(E*F) -27,000 Adjusted land Rate for Subject Property (Rs. per sq. yd) (F-G) 18,000

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Industrial

FACTORS Premium / Discount

Connectivity with national highway, railway and A 25% airport B Demand is more due to location 30% Basic infrastructure such as railway and road C 25% network within the area D Total Adjustment (A+B+C) 80%

E Base Rate per sq. yd. 4,748 F Total adjustment(D*E) 3,798 Adjusted land Rate for Subject Property (Rs. per 8,546 sq. yd) (E-F)

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Photographs-Zone 1(B)

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5.3.3 ZONE-2

ZONE-2

ZONE-2

Latitude: 17.710382 Longitude: 83.279493

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Observation: Totally admeasuring 152 acres, and nearest to Bay of Bengal, this zone is known as the ‘Fishing Harbour’ of VPT, this zone lies in Fort ward and Seeta Rama Swami Temple village in VSP urban mandal of Visakhapatnam district.

During inspection of this zone it is noticed, it has the largest container handling unit of VPT i.e. Visakha Container Terminal Private Limited. Along with VCTPL, EDP (Easter Power Distribution) has it set up in this zone. Conveyer belt runs overhead through this zone. This zone has proper road connectivity within the zone as well to different areas of the city.

In Zone-2 there are numerous religious places such as Venkateswar temple, Catholic Church and Dargah of Hazrat Kadak to name the few, and all these places lies in Ross hill area of Zone-2, an inner channel divides Zone-2 from Zone 1(A) in this area of Ross hill.

As per our observations and notice it can be concluded as a zone for industrial use and commercial use. Surrounding Development One town is the nearest developed locality to this zone , major landmarks such as Head post office, Kurpam Market, DEO office , Queen Victoria Statue is present in One town, Beach road runs in the periphery of this zone which extends till Rushikondia. It is located at a distance of approx. 4 km from Visakhapatnam Railway station and 12 km from the Visakhapatnam International Airport.

Market Research Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq. yd. by Joint collector Visakhapatnam and Schedule of Rates for 2018.

Schedule of Rates(VPT) in Rs Value in Rs per Sq.Yd set IGR Values in Rs per Sq.Yd after 2% YOY by Joint Collector Location per Sq.Yd escalation from 2013 till Visakhapatnam for VPT 2018 R C R C I R C I

Fort NA NA 22,000 35,000 NA 7,508 9,937 4,416 ward

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Value Working: In order to arrive at an appropriate land rate for the subject property following influencing factors have been considered to which suitable premium / discount have been assigned.

Residential

FACTORS Premium / Discount

A Large extent of land parcel -30% B Limits of VPT and leasehold land -25% C Sea facing location can be of demand for residential development 10% D Existing FAR on VPT land(1.00) -20% E Total Adjustment (A+B+C+D) -65%

F Base Rate per sq. yd. 22,000 G Total adjustment(E*F) -14,300 Adjusted land Rate for Subject Property (Rs. per sq. yd) (F-G) 7,700

Commercial

FACTORS Premium / Discount

A Basic infrastructure as road and social support prevalent 5%

B Large extent of land parcel -30% C Limits of VPT and leasehold land -25% D Existing FAR on VPT land(1.00) -20% E Total Adjustment (A+B+C+D) -70%

F Base Rate per sq. yd. 35,000 G Total adjustment(E*F) -24,500

Adjusted land Rate for Subject Property (Rs. per sq. yd) (F-G) 10,500

Industrial

FACTORS Premium / Discount

A Smaller roads for connectivity of industrial vehicle -5% B Total Adjustment (A) -5%

C Base Rate per sq. yd. 4,748 D Total adjustment(C*B) -237 Adjusted land Rate for Subject Property (Rs. per sq. yd) (C-D) 4,511

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Photographs-Zone 2

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5.3.4 ZONE-3

ZONE-3

ZONE-3

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Observation: Zone 3 lies to the south of VPT and is 926.55 acres in total, and present in Yarada and Malkapuram village with Gajuwaka Mandal and VSP Urban Mandal respectively, basically a hill area with major residential development compromising of naval quarters and Hindustan Shipyard colony. Along with residential development this zone experiences existence of Industries as ISPRL, South Asian Liquid Petroleum Gas Company, HPCL and also has the offshore terminal tank terminal of VPT. Zone 3 has a proper connectivity of road within the boundary and to the city as well.

As per observation it can be concluded that this zone is a mixed development of residential and industrial and small scale retail units exist to support the residential development prevailing in the zone.

Surrounding Development: During the inspection it was noticed that Zone-3 exists in a surrounding of largely developed residential units such as Gudiwada Apana colony in Malkapuram which is nearly 1.5 km from zone-3 and residential development in Sri Hari Puram, apart from residential development this zone lies in a vicinity of planned industrial units such as HPCL, along with Eastern Naval Command Headquarters which is the major landmark near the zone Few major landmark in terms of hospitals such as ESI hospital and Kalyani hospital are present at a distance of 2km from the zone. Availability of transportation in terms of bus and autos are present in this zone. The distance from Airport to this zone is approximately 12 km and railway station is 8 km respectively.

Market Research The ready-Reckoner rates of land for residential purpose in Malkapuram village is Rs.10,000/- per sq. yd. for residential land for stamp-duty purposes effective from 01/08/2017 published by government of State of Andhra Pradesh.

Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq.yd by Joint collector Visakhapatnam and Schedule of Rates for 2018. Value in Rs per Sq.Yd set by Schedule of Rates(VPT) in Rs IGR Values in Joint Collector per Sq.Yd after 2% YOY Location Rs per Sq. Yd. Visakhapatnam for VPT escalation from 2013 till 2018 R C R C I R C I

Yaradav, 10,000 NA 10,000 NA NA 2,760 NA 2,098 Malkapuram

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Value Working: In order to arrive at an appropriate land rate for the subject property following influencing factors have been considered to which suitable premium / discount have been assigned.

Residential

FACTORS Premium / Discount

A Sea facing view can be on demand 5% B Limits of VPT and leasehold land -25% C Extent of land parcel -30% D Existing FAR on VPT land(1.00) -20% E Total Adjustment (A+B+C+D) -70%

F Base Rate per sq. yd. 10,000 G Total adjustment(E*F) -7,000 Adjusted land Rate for Subject Property (Rs. per sq. yd) (F-G) 3,000

Industrial

FACTORS Premium / Discount

Unsuitable for industrial due to existing residential development A -25% (opportunity cost of land)

B High Infrastructure cost due to the hilly terrain of Land -30%

C Total Adjustment (A+B) -55%

D Base Rate per sq. yd. 4,748 E Total adjustment(C*D) -2,611 Adjusted land Rate for Subject Property (Rs. per sq. yd) (D-E) 2,137

.

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Photographs-Zone 3:

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5.3.5 ZONE-4

ZONE-4

ZONE-4

Latitude: 17.707133, Longitude: 83.241493

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Observation: Zone 4 lies in the centre of the city and also is the zone having maximum land parcel out of 12 zones, it totally admeasures 2,498 acres and is spread across 6 different villages which lies in 2 different mandals, where Gullalapalem, Malkapuram, Kapparada are the villages which comes under VSP urban mandal and Mulagada, Mindi and Akkiredipalem are the villages under Gajuwaka mandal.

As per observation it was witnessed that this zone experiences the maximum development in terms of industries. And it lies in a developed region of the city with residential and retail development in a radius of 3 to 4 km.

Mentioned below is the existing development in the zone direction wise: a) To the north western part of this zone land is leased to Indian potash limited, A.P State warehousing corporation, Krishak Bharati Cooperative Limited(KRIBHCO), Continental Warehousing Corporation ( Nhava Seva) limited and Rain CII carbon (Vizag) limited. And these company use the land for purpose of warehousing and godowns. This part of Zone 4 has proper connectivity in terms of road network where the service road adjacent to the warehouses and godowns connects to NH 5 through Port road. b) Across port road which runs through Zone 4 to the nearest south, in this part of zone land is leased to Balmer Lawrie company which is approx. 52.025 acres as per the general plan map share by client. Also in this part of the zone there is godown of Sravan Shipping Company. c) Towards east of Port road and East India petroleum road junction land is leased for purpose of warehouses to Mahamaruti Pvt Ltd, LMJ International Limited, Belmont. Further east towards EIP road around 50 acres of land( as per general plan map shared by client) is leased to East India Petroleum, and also adjacent to M/S EIP, presence of mangrove area can be seen. d) In the central region of this zone lies Hindustan Petroleum Corporation Limited, Coromandel International Limited, Andhra Pradesh Petro Chemicals Limited, which are the major lessee of the zone and have tenanted nearly 50% of total area under Zone-4, apart from major lessee VCTPL (Visakha Container Terminal Pvt Ltd) for purpose of Container Freight Station, Bharat Petroleum Corporation Ltd. Srivalli Shipping for CFS have leased land from VPT. e) To the south of Zone 4, along Gajuwaka-Scindia road, land is majorly leased to HPCl for refinery, fertilizers berth and oil warfs, along with HPCL, approx. 45 acres of land is leased to Indian Oil Corporation, adjacent to the inner channel 110 acres approx. land is leased to Hindustan Shipyard Limited in Zone 4.

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f) Apart from Industries this zone has some residential development in terms of HPCL quarters and Indian Coast Guard quarters, Mahalaxmi talkies, Malkapuram Police station, BSNL office and ESI Hospital are the major landmarks situated in this zone.

Surrounding Development: During inspection it was clearly witnessed that this zone majorly has industrial development and lies in a developed region of the city with the nearest development in terms of residential and retail units are in localities such as Mindi, Gajuwaka, Ram Nagar, Sri Haripuram and Sri Nagar which is nearly 2 km away from Zone-4. With availability of schools, hospitals, recreational centres such as malls and small retails makes the surrounding is most suitable for habitats residing in the surrounding areas of Zone 4. Few major landmark in terms of hospitals such as ESI hospital and Kalyani hospital are present. Availability of transportation in terms of bus and autos are present in this zone.

Market Research During market research as per our interaction in the Sub Register Office of Gajuwaka we attained market value certificate that mentions the guideline value for villages under Gajuwaka Sub register for various survey numbers and there details as tabulated below:

SRO Value for Commercial Sr. No. Survey No Village Rate (Rs. /Sq. yd.) 1 18/4 Mindi 23,000 2 18/4 Akkireddipalem 23,000 3 145/10 Malakapuram 20,000 4 143/10 Gullalapalem 20,000

SRO Value-Residential

Sr. No. Survey No Village Rate (Rs. /Sq. yd.)

1 145/10 Malakapuram 10,000 2 143/10 Gullalapalem 13,000 3 18/4 Akkiredipalem 14,000 4 296/6 Mulagada 20,000 5 269/6 Mindi 10,000

Whereas the ready-Reckoner rates of land for residential land in different villages in Gajuwaka and VSP urban mandal for stamp-duty purposes effective from 01/08/2017 published by government of State of Andhra Pradesh is mentioned as overleaf.

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

Ready Reckoner Value Sr. No Village Rate (Rs./ Sq. yd.) 1 Coromandel Main Road, Gullapalem 15,000 2 Malkapuram 10,000 3 Kapparada 31,000 4 Mulagada 20,000 5 Mindi 12,000 6 Akkiredipalem 14,000

Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq.yd by Joint collector Visakhapatnam and Schedule of Rates for 2018.

Market Value in Rs per Schedule of Rates(VPT) in IGR Values in Rs per Sq.yd set by Joint Rs per Sq.Yd after 2% YOY Location Sq.Yd Collector Visakhapatnam escalation from 2013 till for VPT 2018 R C R C I R C I Coromandel Main 15,000 20,000 Road, Gullapalem Malkapuram 10,000 20,000

Kapparada 31,000 NA 10,000 20,000 NA 5,410 8,391 2,595 Mulagada 20,000 NA Mindi 12,000 23,000 Akkiredipalem 14,000 23,000

Value Working: In order to arrive at an appropriate land rate for the subject property following influencing factors have been considered to which suitable premium / discount have been assigned

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

Residential

FACTORS Premium / Discount

A Large extent of land parcel -30% B Limits of VPT and leasehold land -25% C Well-developed social infrastructure 20%

D Good connectivity to other parts of the city 10%

E Existing FAR on VPT land(1.00) -20% F Total Adjustment (A+B+C+D+E) -45%

G Base Rate per sq. yd. 10,000 H Total adjustment(F*G) -4,500

Adjusted land Rate for Subject Property (Rs. per sq. yd) (G-H) 5,500

Commercial

FACTORS Premium / Discount A Extent of land is very large -30% B Limits of VPT and leasehold land -25% C Presence of marshy land at north eastern region of zone -5% D Existing FAR on VPT land(1.00) -20% E Well-developed social infrastructure 10% F Good connectivity to other parts of the city 10% G Total Adjustment (A+B+C+D+E+F) -60%

H Base Rate per sq. yd. 21,500 I Total adjustment(G*H) -12,900 Adjusted land Rate for Subject Property (Rs. per sq. yd) (H-I) 8,600

Industrial

FACTORS Premium / Discount

A Basic infrastructure is available and suitable for industries 5% B Total Adjustment (A) 5%

C Base Rate per sq. yd. 2,521 D Total adjustment(B*C) 126

Adjusted land Rate for Subject Property (Rs. per sq. yd) (C-D) 2,647

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Hence for purpose of establishing fare rates for zone 4, for industrial land and after observing the development potential, connectivity and location of these zones as well as stiff competition from neighbouring ports it is proposed that 10% to 15 % premium on the Schedule of rates as on 31-03-2018 for industrial land in the zones 4, can be considered reasonable.

Summarize below are the proposed rates for the market value of land:

Proposed value zone wise in Rs per Sq.yd Schedule of Rates(VPT) in Rs per Sq.Yd after 2% for 2018-2023 YOY escalation from 2013 till 2018

R C I R C I

5,500 8,600 2,984* 5,410 8,391 2,595

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

Photographs-Zone 4

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5.3.6 ZONE-5

ZONE-5

ZONE-5

Latitude: 17.707133, Longitude: 83.241493

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

Observation: Zone 5 similar to Zone 4 lies in the centre of city and the nearest zone to Visakhapatnam International airport and this zone also share its boundary with Meghadari Channel which divides Zone 4 and Zone 5 and shares boundary with INS Dega This zone totally admeasures 746.67 acres and is spread across 3 different villages which are Buchiraju Palem and Kapparada which comes under VSP urban mandal and Mindi which comes under Gajuwaka mandal.

As per observation the land in zone 5 is leased to HPCL Petro Park, Vizag Sea Port Limited and Rain Calcining Limited. Along with industries, there is a 10 MW Solar plant of VPT situated in this zone for purpose of electricity supply to VPT.

Also it was noticed that in this zone major portion of land near to airport is vacant, and the vacant land is not levelled and also is present below the Port road level which runs adjacent to the vacant land connecting to the city.

Surrounding Development: As per inspection, as this zone is the nearest to International airport and due to the restrictive covenant of height major development in terms of residential and commercial is very less. The nearest real estate development in terms of residential and retail can be seen in Durgapuram locality and Ashoka Park colony which is at a distance of 1.5 km and lies to the north of Zone 5. Also at a distance of 3 to 4 km lies Mindi, Akkiredipalem and Gopalapatnam rural and in these region major residential and retail units can be seen and these region lies to the south west of Zone 5. Availability of public transport is very scarce though there exist better connectivity of road which connects to different part of the city.

Market Research: Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq. yd. by Joint collector Visakhapatnam and Schedule of Rates for 2018. Schedule of Rates(VPT) in Rs Market Value in Rs per Sq. IGR Values in Rs per per Sq. Yd. after 2% YOY yd. set by Joint Collector Location Sq. Yd. escalation from 2013 till Visakhapatnam for VPT 2018 R C R C I R C I Mindi 12,000 NA Kapparada 31,000 50,000 10,000 20,000 NA 5,189 13,139 2,628 Buchirajupalem 25,000 50,000

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Value Working: In order to arrive at an appropriate land rate for the subject property following influencing factors have been considered to which suitable premium / discount have been assigned.

Residential

FACTORS Premium / Discount

A Large extent of land parcel -30% B Limits of VPT and leasehold land -25% Height restrictions due to proximity to airport and development C -5% restrictions due to mangroves and meghadri channel D Good connectivity in the area 5% E Existing FAR VPT Land (1.00) -20% F Total Adjustment (A+B+C+D+E) -75%

G Base Rate per sq. yd. 22,250 H Total adjustment (F*G) -16,688 Adjusted land Rate for Subject Property (Rs. per sq. yd) (G-H) 5,563

Commercial

FACTORS Premium / Discount

Height restrictions due to proximity to airport and development A -5% restrictions due to mangroves and meghadri channel B Large extent of land -30% C Limits of VPT and leasehold land -25% D Existing FAR VPT Land (1.00) -20%

E Good connectivity due to nearer to highway 10%

F Total Adjustment (A+B+C+D+E) -70%

G Base Rate per sq. yd. 50,000 H Total adjustment (F*G) -35,000

Adjusted land Rate for Subject Property (Rs. per sq. yd) (G-H) 15,000

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Industrial

Premium / FACTORS Discount Developmental and environmental constraints due to proximity to A -5% meghadri channel and mangroves B Good connectivity due to proximity to highway and airport 15% C Total Adjustment (A+B) 10%

D Base Rate per sq. yd. 2,521 F Total adjustment (C*D) 252 Adjusted land Rate for Subject Property (Rs. per sq. yd.) (D-F) 2,773

Hence for purpose of establishing fare rates for zone 5, for industrial land and after observing the development potential, connectivity and location of these zones as well as stiff competition from neighbouring ports it is proposed that 10% to 15 % premium on the Schedule of rates as on 31-03-2018 for industrial land in the zones 5, can be considered reasonable.

Summarize below are the proposed rates for the market value of land:

Proposed value zone wise in Rs per Sq. Schedule of Rates(VPT) in Rs per Sq. Yd. after 2% yd. for 2018-23 YOY escalation from 2013 till 2018

R C I R C I

6,450 21,375 3,022* 5,189 13,139 2,628

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

Photographs- Zone-5:

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5.3.7 ZONE-6

ZONE-6

ZONE-6

Latitude: 17.707133, Longitude: 83.241493

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

Observation: Zone 6 is present in the north western side of VPT and is located in the central region of Visakhapatnam city. Zone 6 admeasures 816 acres and is present across 6 different villages bearing the name Buchiraju Palem, Gopalpatnam, Pullam Botla Palem which is under VSP rural mandal and Tungalam (Nathyyapalem), Venkatapathi Raju Peta and Akkiredipalem which comes under Gajuwaka mandal.

During inspection it was noticed that in this zone major portion of land ie approx. 97.8 acres along NH 6 and near to International airport is leased to Concor, the said leased land is developed by Concor and is used as per its usage for stacking yard of containers and railway tracks are there for transportation of goods and materials. Apart from Concor, few land portion of this zone is leased to Gas authority of India and East India Gateway Ltd.

Major portion of land near to airport in this zone is vacant and is proposed for special commercial use as per information of the client.

Surrounding Development: This zone experiences better connectivity in terms of road network with the city and lies in the vicinity of 1 to 2 km to developed area such as Sheela Nagar, Kakani Nagar and Yellapuvanipalem. Development of residential, commercial and retail units can be seen near to Zone 6. Ayyapa Temple, STBL complex, Icon krishi hospital are few major landmarks near to the zone. Availability of public transport, schools and recreation centres are there near to this zone.

Market Research: Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq.yd by Joint collector Visakhapatnam and Schedule of Rates for 2018. Market Value in Rs per Schedule of Rates(VPT) in Rs IGR Values in Rs Sq.yd set by Joint per Sq. Yd. after 2% YOY Location per Sq.Yd Collector Visakhapatnam escalation from 2013 till for VPT 2018 R C R C I R C I Buchirajupalem NA 50,000 Gopalpatnam 25,000 45,000 Akkiredipalem 14,000 NA 15,000 NA NA 6,293 20,536 3,147 Tungalam 10,000 NA Venkatapathi Raju 8,000 NA

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

Peta Pullam Botla 4,000 NA Palem

Value Working: In order to arrive at an appropriate land rate for the subject property following influencing factors have been considered to which suitable premium / discount have been assigned.

Residential

FACTORS Premium / Discount

A Availability of social support 10% B Large extent of land parcel -30% C Limits of VPT and leasehold land -25% D Existing FAR VPT Land (1.00) -20% E Good connectivity due to highway 10% F Total Adjustment (A+B+C+D+E) -55%

G Base Rate per sq. yd. 14,333 H Total adjustment (F*G) -7,883

Adjusted land Rate for Subject Property (Rs. per sq. yd) (G-H) 6,450

Commercial

FACTORS Premium / Discount

A Large extent of land parcel -30% B Limits of VPT and leasehold land -25% C Location is very near to highway and airport 10% D Existing FAR VPT Land (1.00) -20% E Presence of social support and basic infrastructure 10% F Total Adjustment (A+B+C+D+E) -55%

F Base Rate per sq. yd. 47,500 G Total adjustment (E*F) -26,125 Adjusted land Rate for Subject Property (Rs. per sq. yd) (F-G 21,375

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Industrial

FACTORS Premium / Discount A Undeveloped land -15% Height restrictions due to proximity to airport and development B -15% restrictions due to mangroves and meghadri channel C Total Adjustment (A+B) -30%

D Base Rate per sq. yd. 4,748 E Total adjustment (C*D) -1,424

Adjusted land Rate for Subject Property (Rs. per sq. yd) (D-E) 3,324

Hence for purpose of establishing fare rates for zone 6, for industrial land and after observing the development potential, connectivity and location of these zones as well as stiff competition from neighbouring ports it is proposed that 10% to 15 % premium on the Schedule of rates as on 31-03-2018 for industrial land in the zones 6, can be considered reasonable.

Summarize below are the proposed rates for the market value of land:

Proposed value zone wise in Rs per Sq. Schedule of Rates(VPT) in Rs per Sq. yd. after 2% yd. for 2018-23 YOY escalation from 2013 till 2018 R C I R C I

6,450 21,375 3,619* 6,293 20,536 3,147

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

Photographs-Zone-6

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

5.3.8 ZONE-7

ZONE-7

ZONE-7

Latitude: 17.737289, Longitude 83.238481

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Observation: Having an area of total 30 acres. Zone 7 lies in Maripalem village of VSP urban mandal and Buchiraju palem village of VSP urban mandal. During inspection it was noticed that the land in Zone 7 is primarily vacant and is also undeveloped, level of land is also low to the level of road nearby. There is no proper access to this zone and is facing land locked issues.

Surrounding Development: Zone 7 lies in a developed area of the city and is very near to airport and adjacent to NH 16 (Vizag Srikakulam Highway). Nearest development in terms of residential is in Kakani Nagar, NAD colony and Gowri Nagar. Availability of retail units and commercial units is there in the vicinity of 1 to 2 km of Zone-7, Maripalem railway yard, Kendriya Vidyalaya NAD colony and NAD post office are the few major landmark near to the zone. Availability of public transport is present near to zone.

Market Research: Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq.yd by Joint collector Visakhapatnam and Schedule of Rates for 2018.

Schedule of Rates(VPT) in Rs Market Value in Rs per IGR Values in Rs per per Sq.Yd after 2% YOY Sq.yd set by Joint Collector Location Sq.Yd escalation from 2013 till Visakhapatnam for VPT 2018 R C R C I R C I

Buchirajupalem NA 50,000 8,000 8,000 NA 4,527 13,139 2,871 Marripalem 31,000 42,000

Value Working: In order to arrive at an appropriate land rate for the subject property following influencing factors have been considered to which suitable premium / discount have been assigned.

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

Residential

FACTORS Premium / Discount

A Limits of VPT and leasehold land -25% B Existing FAR on VPT land (1.00) -20% C Land locked(Access) -20% D Surrounding development -20% E Total Adjustment (A+B+C+D) -85%

F Base Rate per sq. yd. 31,000 G Total adjustment(E*F) -26,350 Adjusted land Rate for Subject Property (Rs. per sq. yd) (F-G) 4,650

Commercial

FACTORS Premium / Discount

A Lack of proper access( Land Locked) -20% B Limits of VPT and leasehold land -25% C Existing FAR of VPT land (1.00) -20% D Surrounding development -5% E Total Adjustment (A+B+C+D) -70%

F Base Rate per sq. yd. 46,000 G Total adjustment (F*E) -32,200 Adjusted land Rate for Subject Property (Rs. per sq. yd) (F-G) 13,800

Industrial

FACTORS Premium / Discount

A Lack of proper access( land locked) -20% Development restrictions due to proximity to defence land and B -5% airport C Undeveloped land -10% D Total Adjustment (A+B+C) -35%

E Base Rate per sq. yd. 4,748 F Total adjustment (D*E) -1,662 Adjusted land Rate for Subject Property (Rs. per sq. yd) (E-F) 3,086

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Photographs-Zone-7

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5.3.9 ZONE-8

ZONE-8

ZONE-8

Latitude: 17.742992, Longitude: 83.290403

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Observation: Situated in the north of VPT in a developed area of the city, Zone 8 totally admeasures 251.47 acres. It is spread across 4 different villages bearing name Allipuram extension ward, Dondaparthi ward, and Kancharapalem (ward) all these villages comes under VSP urban mandal and Adivaviram comes under VSP rural mandal.

During inspection it was witness that this zone basically has following list of development: a) Residential buildings such as VPT Employee quarters, CISF staff quarters, NMDD staff quarters. b) Government Buildings such as post office, BSNL wireless station. c) VPT School, VPT Community hall, Port trust Diamond Jubilee stadium, Golden Jubilee hospital. As noticed in Doctors colony present in this zone which is currently in the process of demolition and as per information of client it is proposed for reconstruction of new residential buildings. Also as per the information of client public road running through zone 8 is leased to GVMC for 51 years which serves this zone in terms of connectivity. Zone-8 has 23 acres of land in hill which is vacant and undeveloped.

Surrounding Development: Kailashpuram, Akkayepalem , Seethamadhara are the nearest locality to Zone 8 and all these areas experiences proper development of mixed class locality in terms of residential and retail. Recreational centres, hospitals, schools and daily market are is very close proximity to Zone-8, Availability of public transport is there in this zone. Distance from zone-8 to Visakhapatnam International Airport and Railway station is 11 km and 4 km respectively.

Market Research: Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq.yd by Joint collector Visakhapatnam and Schedule of Rates for 2018.

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Market Value in Rs Schedule of Rates(VPT) Rates as per per Sq. yd. set by IGR Values in Rs per in Rs per Sq. Yd. after market research Joint Collector Location Sq. Yd. 2% escalation YOY in Rs per Sq. yd. Visakhapatnam for from 2013 till 2018 VPT R C R C R C I R C I Alipuram 50,000 60,000 Extension ward Dondaparthi 37,000 85,000 Ward 16,355 40,706 15,000 NA NA 22,082 33,122 NA Adavivaram 30,000 NA

Kancharapalem 22,000 NA Ward

Value Working: In order to arrive at an appropriate land rate for the subject property following influencing factors have been considered to which suitable premium / discount have been assigned. Residential

FACTORS Premium / Discount

A Fully developed residential area 15% B Potential of land in terms of residential is high 15% C Limits of VPT and leasehold land -25% D Large extent of land -30% E Availability of social infrastructure 10% F Existing FAR for VPT land(1.00) -20% G Total Adjustment (A+B+C+D+E) -35%

H Base Rate per sq. yd. 34,750 I Total adjustment (G*H) -12,163

Adjusted land Rate for Subject Property (Rs. per sq. yd) (H-I) 22,588

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

Commercial

FACTORS Premium / Discount

A Developed land has potential for commercial use 10% B Large extent of land -30% C Limits of VPT and leasehold land -25% D Availability of social infrastructure 15% E Existing FAR for VPT land(1.00) -20% F Total Adjustment (A+B+C+D+E) -50%

G Base Rate per sq. yd. 72,500 H Total adjustment(F*G) -36,250

Adjusted land Rate for Subject Property (Rs. per sq. yd) (G-H) 36,250

Industrial

FACTORS Premium / Discount

A Location of land is in foothills so not suitable for industrial -20% Present usage is commercial and residential minimum B -20% possibility of Industrial development C Total Adjustment (A+B) -40%

D Base Rate per sq. yd. 4,748 E Total adjustment (C*D) -1,899 Adjusted land Rate for Subject Property (Rs. per sq. yd) (D-E) 2,849

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Photographs-Zone-8

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5.3.10 ZONE-9

ZONE-9

ZONE-9

Latitude: 17°43'05.7 Longitude: 83°19'14.6

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

Observation: Located in the north eastern part of the city and near to RK beach, zone 9 is in high class residential locality with high end retail to support the residential development. Zone-9 is 32.04 acres and situated in Harbour Park and Maharani Peta ward of VSP urban mandal.

As per our observation it was witnessed that the harbour park area in this zone is majorly used for residential purpose such as bungalows and quarters for port authorities. The entire residential development supported with recreational centres such as club houses, Children Park. Shuttle Courts along with lawns and vegetation plantation area, this zone is completely bounded by compound wall with three gates for entry and exit. Harbour Park is under surveillance of CISF and has got security check post at different region within the zone. This zone also has some portion of land left vacant for green belt. And towards south small portion of the land is leased to Mercantile Marine Department.

Also it was witness that the area in Maharani Peta layout is used for residential purpose and along with residential quarters for VPT officials, Office of the Assistant labour commissioner (Central) is situated in this zone as well.

Surrounding Development: Situated in a posh locality of Pandurangapuram, Daspalla hills and in the nearest vicinity of RK beach, the surrounding development of zone-9 is rich with high end retails, banks and commercial units, also it was witness that high class residential development exists in a radius of 4 to 5 km of Zone-9. Availability of public transport is present and also the connectivity in terms of road network is of superior quality in the surrounding. Schools, hospitals and daily markets are there in the vicinity of 1 to 2 kms of the zone. The distance between Zone-9 and Visakhapatnam international airport and railway station is 12 km and 5 km respectively.

Market Research: Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq.yd by Joint collector Visakhapatnam and Schedule of Rates for 2018

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

Market Value in Rs per Schedule of Rates(VPT) in Rs IGR Values in Sq.yd set by Joint Collector per Sq.Yd after 2% escalation Location Rs per Sq.Yd Visakhapatnam for VPT YOY from 2013 till 2018 R C R C I R C I

Harbour Park, NA NA 40,000 47,000 NA 40,520 46,040 NA Maharani Peta

Value Working: In order to arrive at an appropriate land rate for the subject property, following influencing factors have been considered to which suitable premium / discount have been assigned.

Residential

FACTORS Premium / Discount

A Premium location for residential 15% Well-developed social infrastructure with good connectivity to B 20% other parts of the city C Limits of VPT and leasehold land -25% D Occupiers profile 15% E Existing FAR on VPT land(1.00) -20% F Total Adjustment (A+B+C+D+E) 5%

G Base Rate per sq. yd. 40,000 H Total adjustment (F*G) 2,000 Adjusted land Rate for Subject Property (Rs. per sq. yd) (G-H) 42,000

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Commercial

FACTORS Premium / Discount

A Developed land has potential for commercial use 15%

B Limits of VPT and leasehold land -25% Well-developed social infrastructure with good connectivity to other C 15% parts of the city D Premium location 20% E Existing FAR on VPT land(1.00) -20% F Total Adjustment (A+B+C+D+E) 5%

G Base Rate per sq. yd. 47,000 H Total adjustment (F*G) 2,350

Adjusted land Rate for Subject Property (Rs. per sq. yd) (G-H) 49,350

Industrial

FACTORS Premium / Discount Present usage is commercial and residential minimum A -30% possibility of Industrial development B Total Adjustment (A) -30%

C Base Rate per sq. yd. 4,748 D Total adjustment (B*C) -1,424

Adjusted land Rate for Subject Property (Rs. per sq. yd) (C-D) 3,324

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VUDA PARK AREA Situated off Beach road and adjacent to VUDA park, Visakhapatnam, this area forms a part of zone-9 and is nearly 0.78 acres .It is presently vacant and compounded by wall in three side and faces sea at one side. During inspection it was noticed that the land is levelled and as per information by the representative of the client land was previously used for purpose of light house. It is adjacent to Hotel Park and Vuda Park.

Surrounding Development: Situated in a posh locality of Pandurangapuram, Daspalla hills and in the nearest vicinity of RK beach, the surrounding development of zone-9 is rich with high end retails, banks and commercial units, also it was witness that high class residential development exists in a radius of 4 to 5 km of Zone-9. Availability of public transport is present and also the connectivity in terms of road network is of superior quality in the surrounding. Schools, hospitals and daily markets are there in the vicinity of 1 to 2 kms of the zone. The distance between Zone-9 and Visakhapatnam international airport and railway station is 12 km and 5 km respectively.

Value Working: In order to arrive at an appropriate land rate for the subject property considering the proposed value for zone-9 as a base rate and following influencing factors have been considered to which suitable premium / discount have been assigned.

Residential

FACTORS Premium / Discount

A Premium location for residential 20% Well-developed social infrastructure with good connectivity to B 20% other parts of the city C Limits of VPT and leasehold land -30% D Sea view 10% E Total Adjustment (A+B+C+D+D) 20%

F Base Rate per sq. yd. 40,000 G Total adjustment (E*F) 8,000 Adjusted land Rate for Subject Property (Rs. per sq. yd) (F-G) 48,000

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FACTORS Premium / Discount

A Developed land has potential for commercial use 20% B Limits of VPT and leasehold land -30% Well-developed social infrastructure with good connectivity to C 20% other parts of the city D Premium location 10% E Total Adjustment (A+B+C+D) 20%

F Base Rate per sq. yd. 47,000 G Total adjustment (E*F) 9,400 Adjusted land Rate for Subject Property (Rs. per sq. yd) (F-G) 56,400

Industrial

FACTORS Premium / Discount

Usage can be commercial and residential minimum possibility A -30% of Industrial development B Total Adjustment (A+B) -30%

C Base Rate per sq. yd. 4,748 D Total adjustment (B*C) -1,424 Adjusted land Rate for Subject Property (Rs. per sq. yd) (C-D) 3,324

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Photographs-Zone-9

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Photographs-Zone-9(VUDA PARK)

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5.3.11 Zone-10

Latitude: 17°919462 Longitude: 83°4427

Observation: Situated off road NH16 connecting Chennai to Kolkata and nearly at a distance of 4km from National highway, Zone 10 lies in the village Mulakuddu of Bhimunipatnam mandal and totally admeasures 228.12 acres. Zone 10 is located near river bed of Gostani river and adjacent to 15 ft road which connects NH 16 and Bheemunipatnam which is nearly 2km from the subject property. As per our observation the subject land is undeveloped, vacant and majorly around 60 % of land parcel is in river bed , and due to nearest vicinity to sea and also due to river passing through the zone, this zone has water logging issues and major portion of land is marshy. High tension wire passes through this zone and level of land is 3 to 4 metre below ground level. Towards south of the zone some portion of land is encroached and construction of temple was noticed.

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Surrounding Development: Zone 10 is approximately 40 km away from Visakhapatnam. Thangapura Valsa GVC and Bheemunipatnam are the nearest developed places to zone 10 which are a distance of 3 to 4 km from subject property. During inspection few plotted development layouts were seen near to the subject property. At a radius of 1 km major development in terms of residential or commercial is very scare. Availabilty of schools, colleges, hospitals, recreational centres such as malls, shopping complexes and basic infrastructure is lacking in this zone.

Market Research Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq. yd. by Joint collector Visakhapatnam and Schedule of Rates for 2018. Schedule of Rates(VPT) in Market Value in Rs per Sq. IGR Values in Rs Rs per Sq.Yd after 2% yd. set by Joint Collector Location per Sq. Yd. YOY escalation from Visakhapatnam for VPT 2013 till 2018

R C R C I R C I

Bheemunipatnam 35,00 NA 1,300 NA NA 1,435 NA NA

Value Working: In order to arrive at an appropriate land rate for the subject property following influencing factors have been considered to which suitable premium / discount have been assigned

Residential

FACTORS Premium / Discount

A Escalation of 2% on SOR 2018 2%

B Total Adjustment (A+B+C+D) 2%

C Base Rate per sq. yd. 1,435 D Total adjustment (B*C) 29 Adjusted land Rate for Subject Property (Rs. per sq. yd) (C-D) 1,464

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Industrial

FACTORS Premium / Discount

Undeveloped Raw land situated majorly in river bed and faces A -15% water logging issues

B Location of land is far from developed areas nearby -15% C Large extent of land -25% D Total Adjustment (A+B+C) -55%

E Base Rate per sq. yd. 2,665 F Total adjustment (D*E) -1,466 Adjusted land Rate for Subject Property (Rs. per sq. yd) (E-F) 1,199

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Photographs: Zone-10

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5.3.12 Zone-11

ZONE-11

ZONE-11

Latitude: 17.700392, Longtitude 83.059623

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VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

Observation:

Zone 11 is spread across 5 different villages namely Lankelapalam, Peda mushridivada, Mantripalem Kannuru and E-Marripalem and all these villages’ lies in Parawada mandal. Zone 11 totally admeasures 306.86 acres. This zone lies off road NH 16 which connects Chennai to Visakahapatnam As per observation it was noticed that zone 11 is basically a hill having an elevation of around 1000 metres and the land is undeveloped and raw. High tension wire is running beside the zone. The north end of the hill has some portion as illegal quarry. As per information by the candidate of client, this land is obtained through exchanged with State government. There is no proposal in place for the development of the zone.

Surrounding Development: Situated in an area where basic infrastructure such as schools, colleges, hospitals, shopping complexes are lacking. Neighbourhood profile is low class in this zone and many EWS layout could be seen in the locality, basic occupation of the inhabitants nearby seemed to be farming and agriculture. Nearby to the subject property Syam way pharmacity colony is present. At a distance of 8 km from the subject property few major landmarks such as Visakhapatnam SEZ and Vignan institute of technology are situated and JN Pharma city is nearly 6 km from the property. The distance between Visakhapatnam city and the subject property is approx. 20 km.

Market Research Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq.yd by Joint collector Visakhapatnam and Schedule of Rates for 2018

Schedule of Rates(VPT) Market Value in Rs per IGR Values in Rs in Rs per Sq.Yd after 2% Sq.yd set by Joint Collector Location per Sq.Yd YOY escalation from Visakhapatnam for VPT 2013 till 2018 R C R C I R C I Lankelapalem 5,500 NA E-Marripalem 2,000 NA Peda 2,400 NA 1,700 NA NA 1,700 NA NA mushidivada Manthripalem 2,500 NA Kannuru 1,300 NA

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Value Working In order to arrive at an appropriate land rate for the subject property following influencing factors have been considered to which suitable premium / discount have been assigned

Residential

FACTORS Premium / Discount

A Escalation of 2% on SOR 2018 2%

B Total Adjustment (A+B+C+D+E) 2%

C Base Rate per sq. yd. 1,877 D Total adjustment (B*C) 38

Adjusted land Rate for Subject Property (Rs. per sq. yd) (C-D) 1,915

Industrial

FACTORS Premium / Discount

A Extent of land -25%

Land is undeveloped, raw and in hilly terrain and development B -25% cost will be high to establish industry

C Total Adjustment (A+B) -50%

D Base Rate per sq. yd. 1,605

E Total adjustment(C*D) -803

Adjusted land Rate for Subject Property (Rs. per sq. yd) (D-E) 803

.

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Photographs- Zone-11

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6. SUMMARY

A detailed summary of the Market Value for land for residential, commercial and industrial under each of the 12 zones of VPT is as tabulated overleaf alongwith a comparison to the Schedule of Rates considering the escalation from 2013 to 2018 for each of the zones of VPT.

Area Schedule of Rates(VPT) in Rs Schedule of Rates (VPT) in Rs per Sq. Yd. after Proposed value zone wise in Rs per Sq. Zone Location in per Sq. Yd. for year 2013 2% YOY escalation from 2013 till 2018 yd. for 2018-23

acres R C I R C I R C I

1A Core- Operational area 1370 5,600 10,900 3,520 6,183 12,034 3,886 6,600 12,250 4,236

1B Near Convent Junction 185 7,500 15,000 7,500 8,281 16,561 8,281 8,800 18,000 8,546

2 Fishing Harbour 152 6,800 9,000 4,000 7,508 9,937 4,416 7,700 10,500 4,511

3 Hilly Area 924 2,500 NA 1,900 2,760 NA 2,098 3,000 NA 2,137

4 Industrial area 2498 4,900 7,600 2,350 5,410 8,391 2,595 5,500 8,600 2,984

5 Near Airport area 747 4,700 11,900 2,380 5,189 13,139 2,628 5,563 15,000 3,022

6 Near National Highway 5 816 5,700 18,600 2,850 6,293 20,536 3,147 6,450 21,375 3,619

Near Marripalem railway yard 7 30 4,100 11,900 2,600 4,527 13,139 2,871 4,650 13,800 3,086 away from highway

8 Salgramapuram area 269 20,000 30,000 NA 22,082 33,122 NA 22,588 36,250 2,849

9 Harbour park area 32 36,700 41,700 NA 40,520 46,040 NA 42,000 49,350 3,324

10 Bheemuni patnam area 288 1,300 NA NA 1,435 NA NA 1,464 NA 1,199

11 Lankelapalam area 307 1,700 NA NA 1,877 NA NA 1,915 NA 803

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ANNEXURE A – ASSUMPTIONS AND LIMITING CONDITIONS

1. Assumptions are made to the best of our knowledge and belief. Reliance is based on the information furnished to us by the identifier and the client.

2. The property is valued on the assumption that it is free and clear of all mortgages encumbrances and other outstanding premiums and charges.

3. No legal verification of the title of the property has been undertaken and the valuer shall not be responsible for any matter of legal nature that affects the value and the opinion expressed by us.

4. Where it is stated that the client has supplied information to the valuer, this information is believed to be reliable, but the valuer can accept no responsibility if this should prove not to be so. Where information is given without being attributed directly to another party, this information has been obtained from our market research.

5. In no event shall the valuer be held responsible or liable for special, direct, indirect or consequential damages as the assignment has been completed on best efforts, available knowledge and in good intentions of persons concerned and belief.

6. If our appearance is required, we will be pleased to appear and give the necessary clarifications, provided the fees for each appearance (including out of pocket expenses) are pre-determined.

7. The report is for the sole use to the client, it has been addressed to; neither the whole nor any part of this valuation report and any reference there to may be utilized without the prior written approval of M/s. Kanti Karamsey & Co.

8. The valuer’s responsibility in connection with this valuation report is limited to the client to whom it is addressed and to that client only. The valuer disclaims all responsibility and will accept no liability to any other party.

9. Validity of this report is as on date of valuation report only.

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