Prefeasibility Report : RGIA Expansion

Project Pre-Feasibility Report for Multi Sector SEZ Towards Application for Environmental Clearances

November, 2016

GMR International Airport Limited

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Prefeasibility Report : RGIA Expansion

Table of Contents

1.0 EXECUTIVE SUMMARY...... 5 2.0 INTRODUCTION TO PROJECT ...... 6

2.1 BACKGROUND ...... 6 2.2 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT ...... 6 2.2.1 Project Proponent ...... 6 2.2.2 Identification of Project ...... 6 2.3 ACHIEVEMENTS ...... 8 3.0 PROJECT DESCRIPTION ...... 10

3.1 TYPE OF PROJECT ...... 10 3.2 LOCATION ...... 10 3.3 RGIA ENVIRONMENTAL SETTING ...... 11 3.4 ALTERNATE SITES CONSIDERED ...... 12 3.5 PROPOSED PROJECT DETAILS ...... 12 3.6 CONCEPT OF DEVELOPMENT OF MULTISECTOR SEZ/INDUSTRIAL PARK ...... 14 3.7 BRIEF DESCRIPTION SELECTION PROCESS & NATURE OF THE PROJECT ...... 15 3.8 SUSTAINABILITY OVERVIEW-RGIA ...... 21 3.8.1 Greening the Airport: ...... 21 3.8.2 Green Buildings ...... 22 3.8.3 Wastewater Reuse & Recycle ...... 23 3.8.4 Rainwater Harvesting ...... 23 3.8.5 Solid Waste Management ...... 26 3.8.6 Renewable Energy Use - Solar Farm ...... 26 4.0 SITE ANALYSIS ...... 28

4.1 CONNECTIVITY ...... 28 4.2 LAND FORM, LAND USE AND LAND OWNERSHIP ...... 28 4.2.1 SEZ Land use ...... 28 4.3 TOPOGRAPHY ...... 29 5.0 PROPOSED UTILITY INFRASTRUCTURE ...... 31

5.1 WATER REQUIREMENT ...... 31 5.2 POWER REQUIREMENT ...... 31 5.3 UTILITIES ...... 32 5.4 ECONOMIC IMPACT OF GMR AIRPORTS - HYDERABAD ...... 33 5.5 EMPLOYMENT GENERATION COMMENSURATE TO EXPANSION ...... 33 6.0 REHABILITATION AND RESETTLEMENT (R&R) ...... 34 7.0 PROJECT SCHEDULE AND COST ESTIMATE ...... 35 8.0 ANALYSIS OF PROPOSAL ...... 35

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Key Abbreviations Used FY Financial Year FSI Floor Space Index GAL GMR Airports Limited GHIAL GMR Hyderabad International Airport Limited GHG Green House Gas

HVAC Heating, Ventilating, and Air Conditioning HBS Hold Baggage System HASSL Hyderabad Airport Security Services Ltd

MPPA Million Passengers Per Annum MoCA Ministry of Civil Aviation NM Nautical Mile PAX Passenger PHE Passenger Handling Equipment PTB Passenger Terminal Building

PIF Project Information File RGIA Rajiv Gandhi International Airport RAB Regulated Asset Base

Sq. m or Sqm Square Meter SOP Standard Operating Procedure

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Table of Figure Figure 2-1: The SEZ Location in relation to the Airport ...... 7 Figure 3-1: The Airport Location in relation to the City of Hyderabad ...... 10 Figure 3-2: SEZ Layout Showing Existing developments ...... 12 Figure 3-3: MOCI Letter of approval for changing sector of Notified SEZ ...... 13 Figure 3-5: Major commodities India exported in 2013-2014 period ...... 15 Figure 3-6: Key industries in , Industrial Policy Framework for State of Telangana – 2014 ...... 16 Figure 3-7: Conceptual Plan for District Development, Industrial Policy Framework For State Of Telangana – 2014 ...... 16 Figure 3-8: Commodity wise cargo profile at RGIA ...... 17 Figure 3-9: Identified industrial sectors and clusters for SEZ ...... 17 Figure 3-11: SEZ Landuse Map ...... 20 Figure 3-12: GHG Management and Airport Carbon Accreditation ...... 21 Figure 3-13: GHIAL’s GHG emissions in 2014 over base year 2009 ...... 22

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1.0 Executive Summary

GMR Hyderabad International Airport Limited (GHIAL) was incorporated on December 17, 2002 to design, build, finance, operate and maintain the Hyderabad International Airport (named as Rajiv Gandhi International Airport) at , Telangana. GHIAL is operated and managed by the GMR Group, which holds a majority stake (63%) in GHIAL through its holding company GMR Airports Limited (GAL). Other shareholders of GHIAL are Airports Authority of India (13%), Government of Telangana (13%) and MAHB (Malaysia) Private Limited (11%).

GHIAL signed the Concession Agreement with the Ministry of Civil Aviation (MoCA) on December 20, 2004 for a period of 30 years from the Airport Opening Date (i.e. March 23, 2008). The concession is extendable for an additional period of 30 years at the option of GHIAL.

The airport presently has a passenger capacity of 12 MPPA and cargo handling capacity of 1,00,000 MTPA. Passenger traffic has grown from 6.2 mn passengers in 2008 after the airport opened, to 10.5 mn passengers in 2015 (CAGR of over 9%).

The airport is spread over 5500 acres, of which 3500 acres would be utilized for expanding the airport capacity to cater to future traffic demand and 2000 acres envision to develop an Airport City which is a unique concept of integrated ecosystem covering activity centers like industrial & logistic Zones, education, healthcare, leisure & entertainment, sports, hospitality & offices . Airport City will focus on sustainable development using Green Technologies and new generation digital infrastructure along with quality physical infrastructure. The Airport City as on today house aerospace related special economic zone, named GMR Aerospace & Industrial Park with - an extent of 253 acres. To enhance the business feasibility of GMR Aerospace & Industrial Park, GHIAL initiated a process to make the SEZ more broad sector based development to attract players from sectors other than Aviation who would prefer Airport Proximity for their new business ventures.

In this Prefeasibility Report, it has been proposed to convert the existing “Aviation SEZ” into “SEZ at an Airport” that would allow multi sector operations

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2.0 Introduction to Project

2.1 Background Rajiv Gandhi International Airport (RGIA) (IATA: HYD, ICAO: VOHS), serves the metropolis of Hyderabad located at Shamshabad, about 23 km (14 mi) south of Hyderabad.

It replaced the former international airport at and commercial flight operations began on 23rd March 2008. Rajiv Gandhi International Airport is the second public-private partnership venture in India after Cochin International Airport. In 2015–16, it was the sixth busiest Airport in India by overall passenger traffic.

The Airport has been among the Top 3 Airports globally on Airport Service Quality in its Category since inception.

As part of its larger development initiative, in order to create a favorable economic environment, industrial development zone were conceived & established within Hyderabad Airport way back in 2010. About 253.85 acres of land was allocated within existing extent of Rajiv Gandhi International Airport to develop the GMR Aerospace & Industrial Park, an Aviation Sector specific SEZ, to promote the export oriented aviation & aerospace related industrial development. The intent was to provide opportunities to axillary businesses initiatives at RGIA that would provide the required impetus for development of a progressive Airport city as well as to provide the additional traffic boost for Airport development. The activities proposed within the SEZ included Training Centers, Designing Aero Components, Maintenance Repair and Overhauling (MRO) Hangars, Assembly Units, Logistics Facility, Technical Support Services etc.

2.2 Identification of Project and Project Proponent 2.2.1 Project Proponent GMR Hyderabad International Airport Limited (GHIAL) was incorporated to design, finance, build, operate and maintain a world class Greenfield airport at Shamshabad, Hyderabad. The project is based on the Public Private Partnership (PPP) model and is structured on a Build, Own, Operate and Transfer (BOOT) basis.

2.2.2 Identification of Project GMR Aerospace & Industrial Park layout of 253.85 Acres, was established within the airport premises abutting existing airside as the envisaged aviation related activities like MRO, Aircraft assembly, etc. mandated Airside access to facilitate corresponding processing activities.

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Figure 2-1: The SEZ Location in relation to the Airport

Of the total layout extent about 80 acres of SEZ land has been developed with provision of Airside access & rest of the majority of 170+ acres land parcel with only access from landside where in Units not requiring airside access like Training Centers, Designing, Aero Components Assembly Units, Logistics Facilities, Technical Support Services etc., were proposed to be established. As on today, there are about 6 operational SEZ industrial units operating out of about 30 acres, with dominant player being the MRO units “GMR AERO TECHNIC LIMITED” (GAT), a 100% wholly owned subsidiary of GHIAL taking up about 26 acres.

Figure 3-2: SEZ Layout Showing Existing developments

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2.3 Achievements RGIA has been rated consistently among the Top 3 ranked Airports in the world in the 5-15 million passengers per annum category in Airport Service Quality by Airports Council International.

RGIA received the Leadership Energy and Environment Design (LEED) ‘Silver’ rating for its eco-friendly design.

For enhancing the quality of life in the communities living around the RGIA, GMR Varalakshmi Foundation, the CSR wing of the GMR Group has won the ORBIS award, and the TERI Award. RGIA has bagged the prestigious award, ‘FICCI CSR Award 2012-13’, for its CSR initiatives by FICCI Aditya Birla CSR Centre for Excellence. It also received the prestigious ASSOCHAM CSR Excellence Award 2012-2013.

RGIA was awarded the ‘Sword of Honour’ in 2013, in recognition of its effective implementation of Occupational Health & Safety Management Systems from the British Safety Council (BSC) for health & safety works at the airport. It also bagged the prestigious Airport Marketing Award 2013” from Center for Asia Pacific Aviation (CAPA) for airports under 15 mppa across the world. Air Cargo Association of India (ACAAI), awarded Rajiv Gandhi International Airport “Best Cargo Airport of the year” two years in a row in 2012 & 2013.

2.4 Need for the Project As per the Government of India guidelines, SEZs can be developed in the public, private or joint sectors or by the State Governments or their agencies. They are expected to promote establishment of large, self-contained areas supported by world-class infrastructure oriented towards export production. Exploiting the full potential of the concept of SEZs would bring large dividends to the State in terms of economic and industrial development and the generation of new employment opportunities. In line with this vision, Aerospace and Industrial Park at RGIA has been conceptualized on a number of planning principles that includes spatial flexibility of industrial plots and proper alignment of plots with road layout for easy access and respecting the natural key features of the site. In terms of transport and connectivity the project was conceived with multimodal freight transport options including Air and road with a provision of direct access to Airport Airside.

To enhance the business feasibility of GMR Aerospace & industrial Park, GHIAL initiated a process to make the SEZ more broad sector based development to attract other sector players preferring Airport Proximity for their new business ventures. The application for the category change of the SEZ from the aviation Specific SEZ to a multi-product/Service SEZ, was initiated in 2011. The Board of Approval (BOA) Ministry of Commerce & Industry, accorded assent by August 2011 where by GMR Aerospace & Industrial Park category was changed from Aviation Specific SEZ to “SEZ in an Existing Airport” (refer the Figure 3-3)

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Figure 3-3: MOCI Letter of approval for changing sector of Notified SEZ

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3.0 Project Description

3.1 Type of Project The said project is an Upgradation of the existing Sector Specific SEZ to Multi sectors SEZ in order to meet the business feasibility & industrial interest received from prospective SEZ Customers.

3.2 Location RGIA is located at about 23 km south of Hyderabad at Shamshabad. The major access points to the airport are from the National Highway NH-7 and Outer Ring Road (ORR) from the west side and Srisailam State Highway on the Eastern side. Also a first of its kind 11.8 km long elevated expressway has been constructed to enable passengers to reach from the city centre to the expanded six lanes NH-7 road, and arrive at the airport within 30 minutes. Besides these, Multi-Modal Transportation System (MMTS), Metro Rail, Mono Rail Transport System (MRTS) and other alternative modes of transport are being actively explored in collaboration with the state government.

RGIA

Figure 3-1: The Airport Location in relation to the City of Hyderabad

Located strategically at the geographical center of India, Hyderabad is within a two hour flying radius to all the major cities in India and a four hours radius to all the major cities in the Middle East and South East Asia. The city therefore holds tremendous potential to emerge as one of the main air travel hubs in India and the critical destination-and-transit point for travel between the East and the West. Currently, there are 15 foreign and 9 domestic airlines operating from Hyderabad which fly to over 30 domestic & 21 international destinations. In addition, Lufthansa Cargo has 3 weekly freighter services from Frankfurt; Cathay pacific has 1 weekly service from Hong Kong, 2 weekly services from Turkish airline

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from Istanbul & Qatar airline with 3 weekly services from Doha apart from daily domestic Freighter services by Blue Dart.

3.3 RGIA Environmental Setting Sr.No Particulars Details . 1 Latitude 17013’34" N to 17015’14" N 2 Longitude 780 23’16" E to 780 27’56" E 3 Elevation above MSL 590-620 m a) Annual Max. Temp: 43.0 oC Climatic conditions b) Annual Min. Temp: 11.8 oC 4 (IMD, Hyderabad) c) Annual total rainfall: 802.4 mm d) Predominant wind directions: North, West & East Present land use at 5 Industrial & Mixed Use category the Airport National Highway no. 7 connecting Hyderabad to Bangalore at a distance of about 1.0-km from the western side boundary of the Airport. National 6 Nearest Highways Highway No. 765 connecting Hyderabad to Srisailam at a distance of 1.0 km from eastern side boundary of the Airport. Umdanagar on South central BG Line from Hyderabad to Bangalore at a Nearest Railway 7 distance of 1.0 km in Northwest direction. Falaknuma is the nearest junction Station at about 9.0 km on the same line from northern boundary of the Airport. Hyderabad (Begumpet) airport at a distance of about 23.0 km in north 8 Nearest other airport direction. 9 Nearest Town Hyderabad/ (20-km, N) Shamshabad (NW-0.6km), Umdanagar (NW-1.0 km), Mamidipalli (E-0.5 km), 10 Nearest villages from the boundary of the Airport apart from the villages. Small rocky hillocks of about 50 m height are on the eastern direction at a 11 Hills/valleys distance of 0.8 km from the boundary. No ecologically sensitive zone lies within 10 Km radius of Airport. Nehru Zoological Park which is a tourist place is at a distance of about 12 km in north Ecologically sensitive 12 direction, Kasu Brahmananda Reddy National Park-20 km N, Deer Park at zones -21 km NE and Chilkur Reserved Forest - 15 km NW from the center of the Airport No notified forestland is involved in the Airport vicinity. The nearest reserved 13 Reserved Forest forest area having scrubby vegetation is at a distance of 2.5 km from the boundary of the Airport in south direction near Harshagudem village. The important nearest places from Airport center are Falaknuma Palace (11 Historical/Archaeologi 14 km, NE), Golconda Fort (16 km, N), Qutubshahi Thombs (15 km, N), Charminar cal places (14 km, NE), Mahakali Temple (22 km, NE), Salarjung Museum (15 km, NE). Nearest Defense and Defense Research Laboratory (15 km N) 15 other Establishments Research Center Imarat (9 km SE)

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Sr.No Particulars Details . National Police Academy (9 km N) from the Airport center Musa river (8.3 km N), Musi river (11.25 km, N), Himayatsagar (3.95 km NW), Osmansagar (12.7 km NW), (8.6 km N), Husain Sagar (17 km N), 16 Major Water Bodies Rawiral Cheruvu (3.5 km SE), Umdasagar (3.05 km N) from the nearest boundary of the Airport. Several small and medium scale industries in the TSIDA Areas in 8 to 20 km Industries/Industrial radius of the Airport mainly towards north. 17 area Many Information Technology, Pharma Manufacturing & Aerospace companies

3.4 Alternate Sites Considered Since the proposed project is only a proposal to upgrade the existing Sector Specific SEZ to Multi sectors SEZ, alternate sites have not been considered.

3.5 Proposed Project Details

Figure 3-2: SEZ Layout Showing Existing developments

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For expediting growth of SEZ & interest received from various other industrial sectors, GHIAL initiated the process of exploring possibilities of enabling the SEZ to accommodate additional sectorial activities other than Aviation & Aerospace. The application for the category change of the SEZ from the aviation Specific SEZ to a multi-Sector SEZ was initiated in 2011. The Board of Approval (BOA) Ministry of Commerce & Industry, accorded assent by August 2011 where by GMR Aerospace & Industrial Park category was changed from Aviation Specific SEZ to “SEZ in Existing Airport” (refer the below letter)

Figure 3-3: MOCI Letter of approval for changing sector of Notified SEZ

After the Category change GHIAL couldn’t translate the industry interests into effective business entities within the SEZ due to the sociopolitical scenario prior to formation of new state of Telangana.

After the formation of new state of Telangana, there has been renewed vigor to ramp up the activities at SEZ. Being a pioneering state in terms of technological base and workforce availability Telangana & specifically Hyderabad region has the opportunity to grow as a wide spectrum of industrial activities in the region are unfolding. The stated vision for industrialization is: "Research to Innovation, Innovation to Industry and Industry to prosperity." The Government identified 14 core areas for a focused approach include Life Sciences, Pharma, Information Technology, Aerospace, automobiles, textiles, minerals and transportation and logistics. Of the sectors identified by State Government, Pharma, Information

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Technology, Aerospace, transportation and logistics industries have shown active interest in setting up their activities with GMR Aerospace & Industrial Park. Pertinent to this demand following listed out sectors & cluster activities were identified based on feasibility & compatibility of operating respective activities with a SEZ at an Airport. These sectors & cluster activities are identified based on minimalistic Pollution footprint concept, but at same time having high Synergic relation to Airport ecosystem that would promote passenger traffic & cargo traffic growth at RGIA.

3.6 Concept of development of Multi-sector SEZ/Industrial Park The key objective of the industry identification exercise was to identify and ratify the existing industries shortlisted as part of the previous study and to further adds new industries based on the Regional synergies of the state as well as business potential it has with respect to the location. To identify the most suitable and optimal product mix for GHASL keeping in perspective the state, region and local industrial strengths, a Funnel approach has been adapted to shortlist potential industries for the GHASL as depicted in Fig 1.2 .

Figure 3-4: Funnel approach adapted to shortlist potential industries Stage-1 Global & India Level Industry Prioritization Prominent industries prioritized on key performance Parameters Production value Growth trend Prominent global industry Sector FDI Foreign Trade

Stage -2 Telangana State & District Level Industry Prioritization Prominent industries prioritized on key performance Parameters Production value Growth trend Value for Trade Prominent Telangana state industry Sectors Hinterland Synergies Thrust area As per New Industrial Policy Synergies with Airport

Stage -3 Airport level Prioritization Prominent industries prioritized on key performance Parameters Sustainable Growth Impetus to Airport traffic Prominent industry Sectors & Cluster activity Minimum hinterland conflicts Minimum Pollution Synergies with Aerotropolis Development

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3.7 Brief Description Selection Process & Nature of the Project The First step was to identify prominent growth industries from the perspective of Global Industrial activity, India Industrial dynamics and existing Industrial scenario across the state of Telangana and Hyderabad region. This involved an assessment of the prominent and growth industries at the Global and India level.

Global & India Level Industry Prioritization: As the project has been envisaged as a hub of international investments it is essential to study the international opportunities for certain promising industries which are suitable to be established in Hyderabad. This stage of the study was focused on identification of prominent industry groups at a global level based on an analysis of four major parameters such as potential for Production, Foreign Trade, Growth and FDI.

Figure 3-5: Major commodities India exported in 2013-2014 period Source: Table in Department of Commerce, System on Foreign Trade Performance Analysis (FTPA) Government of India (July 2014)

The Second stage evaluation was done based on local parameters mainly relating to state.

New State & State support initiatives for setting up new industries was considered for reviving & ramping up the SEZ project as an integral fit with State Government’s vision of enabling sustainable economic and industrial growth in Telangana. Being a pioneering state in terms of technological industrial base and workforce availability Telangana has the opportunity to grow as a wide spectrum of industrial activities in the region are taking place. The stated vision for industrialization is: "Research to Innovation, Innovation to Industry and Industry to prosperity." The Government identified 14 core areas for a focused approach include Life Sciences, Pharma, Information Technology, Aerospace, automobiles, textiles, minerals and transportation and logistics.

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Figure 3-6: Key industries in Telangana, Industrial Policy Framework for State of Telangana – 2014

Figure 3-7: Conceptual Plan for District Development, Industrial Policy Framework For State Of Telangana – 2014

Of the sectors identified by State Government, the third stage filter was applied to identify the most feasible & compatible sectors & cluster activities for the SEZ. This resulted in identification of Pharma, Information Technology, Aerospace, automobiles, transportation and logistics along with Aviation as the sectors having high Synergies to Airport and at the same time promote passenger traffic & cargo traffic growth at RGIA.

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Figure 3-8: Commodity wise cargo profile at RGIA

Identified industrial sectors and clusters categorized are listed out in Figure 3-9 Figure 3-9: Identified industrial sectors and clusters for SEZ Sectors Activities EC Status

Aviation & MRO (maintenance, repair & Overhaul) Components Approved activities under Aerospace manufacturing, Testing & calibration Current EC Pharmaceutical Formulations New Proposed Activity Assembly and Testing facilities for electronic hardware Test, manufacture, distribute, and provide return/repair services for electronic components Many of the activities proposed Assemblies for original equipment manufacturers have crossover/Similar Electronic Manufacturing of Computers, Printers, Copying Machines, etc. functional characteristics Hardware & Radio and telecommunications industries (R&TTE) as well as relating to clusters under IT/ITeS wireless communications industries, encompassing all products Aviation sector those are that use the radio frequency spectrum, e.g. mobile approved under current EC communications equipment, such as mobile phones and the mobile network infrastructure, citizens-band radio, broadcast transmitters, wireless routers, maritime radars, sensors, etc. Defense manufacturing relating to Weapons & ammunition (parts manufacturing relating to aircrafts, armory, Tanks, Many of the activities proposed artillery, missiles, etc.) have crossover/Similar Mechanical and Insulated wire & cables functional characteristics electrical Electrical Distribution & control Apparatus, relating to clusters under engineering Electrical Lamp & lighting Equipment's Aviation sector those are Medical appliances, precision Instruments for measuring, approved under current EC optical Instruments, watches & clocks Gems & Jewelry cutting, polishing and selling precious gemstones and metals New Proposed Activity

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such as diamonds, other precious stones, gold, silver and platinum Trading, Distribution, Warehousing & Value added services Approved activities under Logistics such as Packing, Re-Packing, Labeling & minor assembly Current EC Commercial Building- Office, shopping, banking, retail, showroom New Proposed Activity, coming Commercial Service Apartment, guest houses, hotel, residences, up within None processing Zone Dormitories (NPA) Amusement & entertainment Parlors Approved activities under Institution Coaching & Training Facilities Current EC Approved activities under Common Use Incubation Facility Current EC

GMR Aerospace & industrial Park envisages developing the new industry clusters along with the existing aviation related industry groups. The Formulation units under pharma Industry will be developed based on Zero discharge, whereas Gems & jewelry, Mechanical and electrical engineering & Electronic hardware wouldn’t have any significant water or Air discharge. As a whole the pollution load is expected to be substantially less as compared to the extent of development conceived under different cluster activities under Aviation sector. The priority has been given to green or at the most Orange category industries for the new clusters identified which would substantially reduce the pollution level in comparison to earlier perceived development as per the original plan which emanates from the concept of sustainable development.

Details of the Area statement of the proposed project given in Figure 3-10.

Figure 3-10: SEZ Landuse Statement S.No Landuse Area (Ac) Area (Ha) % Aerospace Components manufacturing, maintenance, repair, testing 1 80.00 32.40 31.5% & calibration 2 Pharmaceutical Formulations Manufacturing 40.00 16.20 15.8% 3 Electronic Hardware and IT/ITeS 10.00 4.00 3.9% 4 Mechanical and electrical engineering 10.00 4.00 3.9% 7 Gems & Jewelry 2.00 0.80 0.8% Logistics - Trading, Distribution, Warehousing & Value added services 8 15.00 6.10 5.9% such as Packing, Re-Packing, Labeling & minor assembly 9 Institution - Training 2.00 0.80 0.8% NPA_ Commercial Spaces for Lodging, service Apartments, Banking, 10 22.50 8.70 8.5% Conveyances, Conveniences, etc. 11 Check Gates - Including Custom Administrative facilities 0.50 0.20 0.2% 12 Amenities 1.50 0.60 0.6%

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13 Common Use - Incubation Facility 2.50 1.00 1.0% Water bodies 10.00 4.00 3.9% 14 Open Space Green 15.85 6.40 6.2% 15 Utilities 2.00 0.80 0.8% 16 Roads 38.00 15.40 15.0% 17 Heavy Vehicle Parking 2.00 1.20 1.2% Total SEZ Land Area 253.85 102.70 100.0% DTA Land area 22.00 8.90 - Total Extent Of GMR Hyderabad Aerospace & Industrial Park 275.85 111.60

At the same to capitalize on the new opportunities there was a requirement to revamp the development vision for the SEZ so as to develop a modern eco-friendly and smart Industrial Park cum Multi-sector SEZ with state-of-the-art infrastructure in line with the state’s and region’s economic potential. i. Development Vision  The entire development is foreseen as consisting of two major components such as SEZ/Industrial Park which is focused on international market and export business.  Apart from SEZ secondary components are also envisaged as non-processing area (NPA) to accommodate residential facilities, commercial, institutional and public places, retail developments, business parks and recreational amenities.  A Free Trade Zone (FTZ) where goods may be landed, handled, or reconfigured and re-exported without the intervention of the customs authorities. This zone allows trading, distribution & warehousing of goods along with value adding services such as refinish, testing, calibration and repair for re-export of goods freely.

Proposed Land use Plan

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Figure 3-11: SEZ Landuse Map

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3.8 SUSTAINABILITY OVERVIEW-RGIA

GMR Hyderabad International Airport Limited (GHIAL) considers Sustainable development which emphasizes on environmental protection & green development as an integral part of our business and is committed to conducting our business in an environment-friendly and sustainable manner, in line with our Vision, Mission, Values and Beliefs and Corporate Policies. As part of this commitment, we have taken the following green initiatives:-

3.8.1 Greening the Airport:

RGIA is one of the prominent and widely landscaped areas within the topographical region with extensive green cover. As recognition of its positive impact among the airport users as well as on the Hyderabad city itself, RGIA has been conferred with the best landscape award at the ‘Garden festival’ for the fifth consecutive year in 2015 organised by the Dept. of Horticulture, Govt. of Telangana.

Also it is worth mentioning that approximately 169 tonnes of CO2 / annum has been calculated to be removed from the atmosphere by the extensive green cover provided at RGIA.

Figure 3-12: GHG Management and Airport Carbon Accreditation

GHIAL has voluntarily enrolled in the Carbon accreditation programmed launched by the Airports Council International (ACI) worldwide. In this initiative GHIAL has directly achieved Level-2 (Reduction) accreditation in the year 2012 for the effective GHG management during the years 2010 and 2011. This was followed by Level-3 (Optimisation) accreditation in the year 2013. Significantly, Level-3 involves extended scope wherein the stakeholders (airlines, Ground Handling agencies, flight kitchens and other service providers) are also influenced for effective reduction in the GHG emission. With that achievement RGIA has become the 1st Airport in the country and 2nd airport in the Asia Pacific Region to be awarded with the level 3 accreditation.

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GHIAL reduced 5268 tonnes [5099 tonnes of GHG emissions + 169 t GHG sink] of its net GHG emissions in 2014 over base year 2009 i.e. 17%

Figure 3-13: GHIAL’s GHG emissions in 2014 over base year 2009

3.8.2 Green Buildings

The Passenger Terminal Building (PTB) at RGIA has been created to provide a pleasant surprise to any visiting passengers with its unique aesthetic look, energy and water efficient design. The building offers natural lighting naturally cooled ambient air through HVAU and other special features to reduce fresh water usage and recycle waste water generated from the building. For this unique achievement GHIAL has been awarded with the ‘Leadership in Energy and Environmental Design’ (LEED) certification in the year 2008 by the US Green Building Council

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Figure 3-14: RGIA Passenger Terminal Building LEED

3.8.3 Wastewater Reuse & Recycle

GHIAL has created an efficient Sewage Treatment Plant (STP) within the airport premises to treat the wastewater being generated at the airport. The treated wastewater is recycled for flushing and reused for irrigation of the extensive greenery within the airport. Also sludge generated from the STP is being used as manure for the plants in the airport. Further, the domestic wastewater generation itself (all airport buildings) has been reduced to 33 litres per passenger in 2014 from 37 litres per passenger in 2013. During the year 2014 a total of 670 KLD of wastewater has been recycled and reused.

Figure 3-15: Sewage Treatment Plant

3.8.4 Rainwater Harvesting

GHIAL is harvesting rainwater on large scale within the premises of the airport with a built-up capacity of 0.185 million cubic metre. The rainwater net recharge at RGIA is estimated to be1.729 million cubic metre per annum. This rainwater recharge has effectively augmented ground water table in and around the airport.

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During rainy season the surface water is used for domestic and flushing purposes after preliminary treatment. This practice is being carried out for 4-6 months every year on availability of surface water. Consequently, this effectively reduces the dependency of municipal water.

Figure 3-16: Rain Water Harvesting at Westside of the Airport

Figure 3-17: Recharge well

RGIA has recently initiated the development for development of water storage reservoir (r2), in a extent of about 80 Acres, to Conserve the storm water for facilitating sustainable development. The project details are illustrated in below.

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Technical Features :  Annual water saving potential > 12.00 lakh m3  Original proposal was to have a holding capacity of 6.00 lakh m3  About 4.20 lakhs m3 capacity can be achieved only due to formation of bund  100 m space left from the Gollapalli boundary wall for MMTS  Down streamside existing wells (1 and 2) are not disturbed

Physical Features:  Water spread area : 67 acres  Bund length :710 m -750 m  Bund height :6.00 m at the centre  Top width of bund :3 m  Bottom width of bund :30 m appx

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Figure 3-18: Details of Rain Water Harvesting at Westside of the Airport

3.8.5 Solid Waste Management

At RGIA there is a sophisticated solid waste management system to make very good use of the food waste generated from the airport. GHIAL has established a compost plant within the airport premises where all the food waste generated from various sources from the airport is processed and converted into compost which is used as natural manure to the plants of the vast airport landscape within the airport. Further, the paper and plastic waste are handed over to authorized recyclers for reprocess and reuse.

Figure 3-19: Compost Plant at RGIA

3.8.6 Renewable Energy Use - Solar Farm

RGIA has commissioned a 5 MW solar power plant for its captive consumption and plans to gradually scale the capacity up to 30 MW.

Located within the airport premises, the solar plant set up with an outlay of Rs 25 Crores, has started generating around 25,000 units per day of pollution free energy and meeting the airport's peak power demand during day time. The green energy produced by the plant is equivalent to meet requirement of about 4,800 homes.

The plant has been set up in about four months’ time will cater to about 30 per cent of the airport’s terminal power requirement. RGIA in next phase intends to ramp up the capacity of the solar power

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project to 7 MW more and eventually to 30 MW, thereby meeting the entire requirement of the airport and its related establishments. The solar power plant has over 16,000 modules of solar panels, each having a fixed tilt for maximum sun exposure. These modules based on poly crystalline technology are considered to be amongst most efficient. The Grid-connected system would be used for captive consumption of the airport

Figure 3-20: 5MW Solar Plant at RGIA

FEATURES:  Capacity - 5 MW  Area - 21 acre  Average Daily power generation - Appx 2.2 MW  Date of commissioning - 8th Nov 2015  Technology : PolyCrystalline  Module : 310 Watts (19% Efficiency)  Internal grid interconnection at 33KV level  Theoretical expected generation units: 8 Mn. kWh per annum

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4.0 Site Analysis

4.1 Connectivity

Rajiv Gandhi International airport is serving the metropolis of Hyderabad located at Shamshabad, about 23 km south of Hyderabad. The airport is about 40 km from Secunderabad railway station. 11.6 km PV Narasimha rao expressway from to Rajendranagar provides dedicated high speed travel to the airport and Nehru outer ring road serves as a controlled access highway.

Further, metro rail extension from Faluknama to Shamshabad and a dedicated train corridor from Secunderabad to airport are under planning.

4.2 Land form, Land use and Land ownership

4.2.1 SEZ Land use

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S.No Landuse Area (Ac) Area (Ha) % Aerospace Components manufacturing, maintenance, 1 80.00 32.40 31.5% repair, testing & calibration 2 Pharmaceutical Formulations Manufacturing 40.00 16.20 15.8% 3 Electronic Hardware and IT/ITeS 10.00 4.00 3.9% 4 Mechanical and electrical engineering 10.00 4.00 3.9% 7 Gems & Jewelry 2.00 0.80 0.8% Logistics - Trading, Distribution, Warehousing & Value 8 added services such as Packing, Re-Packing, Labeling & 15.00 6.10 5.9% minor assembly 9 Institution - Training 2.00 0.80 0.8% NPA_ Commercial Spaces for Lodging, service 10 22.50 8.70 8.5% Apartments, Banking, Conveyances, Conveniences, etc. 11 Check Gates - Including Custom Administrative facilities 0.50 0.20 0.2% 12 Amenities 1.50 0.60 0.6% 13 Common Use - Incubation Facility 2.50 1.00 1.0% Water bodies 10.00 4.00 3.9% 14 Open Space Green 15.85 6.40 6.2% 15 Utilities 2.00 0.80 0.8% 16 Roads 38.00 15.40 15.0% 17 Heavy Vehicle Parking 2.00 1.20 1.2% Total SEZ Land Area 253.85 102.70 100.0% DTA Land area 22.00 8.90 - Total Extent Of GMR Hyderabad Aerospace & Industrial Park 275.85 111.60

4.3 Topography

The topography of the land at proposed SEZ area has minor undulations. The topographic map, showing different contour levels at the proposed Development zone area is illustrated in the below figure.

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Figure: Topography Map with Airport master Grading plan

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5.0 Proposed Utility Infrastructure 5.1 Water Requirement Proposed Domestic Water Industrial Water Sectors Proposed Cluster Activities Demand (KLD) demand (KLD) Aviation & MRO (maintenance, repair & Overhaul) Aerospace Components manufacturing, Testing & calibration 108 1019 Pharmaceutical Formulations 54 1619 Assembly and Testing facilities for electronic hardware Test, manufacture, distribute, and provide return/repair services for electronic components Assemblies for original equipment manufacturers Manufacturing of Computers, Printers, Copying Machines, Electronic etc. Hardware and Radio and telecommunications industries (R&TTE) as well IT/ITeS as wireless communications industries, encompassing all products that use the radio frequency spectrum, e.g. mobile communications equipment, such as mobile phones and the mobile network infrastructure, citizens- band radio, broadcast transmitters, wireless routers, maritime radars, sensors, etc. 127 85 Defense manufacturing relating to Weapons & ammunition (parts manufacturing relating to aircrafts, armory, Tanks, artillery, missiles, etc.) Mechanical Insulated wire & cables and electrical Electrical Distribution & control Apparatus, engineering Electrical Lamp & lighting Equipment's Medical appliances, precision Instruments for measuring, optical Instruments, watches & clocks 36 98 cutting, polishing and selling precious gemstones and Gems & metals such as diamonds, other precious stones, gold, Jewelry silver and platinum 36 17 Trading, Distribution, Warehousing & Value added Logistics services such as Packing, Re-Packing, Labeling & minor assembly 123 1257 Commercial Building- Office, shopping, banking, retail, showroom Commercial Service Apartment, guest houses , hotel, residences , Dormitories Amusement & entertainment Parlors 164 638 Institution Coaching & Training Facilities 6 17 Common Use Incubation Facility 18 21 Total Requirement 672 4771

5.2 Power Requirement Proposed Sectors Proposed Cluster Activities Power Demand (KW)

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MRO (maintenance, repair & Overhaul), Components Aviation & Aerospace manufacturing, Testing & calibration 12218 Pharmaceutical Formulations 14569 Assembly and Testing facilities for electronic hardware Test, manufacture, distribute, and provide return/repair services for electronic components Assemblies for original equipment manufacturers Manufacturing of Computers, Printers, Copying Machines, etc. Electronic Hardware Radio and telecommunications industries (R&TTE) as well and IT/ITeS as wireless communications industries, encompassing all products that use the radio frequency spectrum, e.g. mobile communications equipment, such as mobile phones and the mobile network infrastructure, citizens- band radio, broadcast transmitters, wireless routers, maritime radars, sensors, etc. 2125 Defense manufacturing relating to Weapons & ammunition (parts manufacturing relating to aircrafts, armory, Tanks, artillery, missiles, etc.) Mechanical and Insulated wire & cables electrical engineering Electrical Distribution & control Apparatus, Electrical Lamp & lighting Equipment's Medical appliances, precision Instruments for measuring, optical Instruments, watches & clocks 2428 cutting, polishing and selling precious gemstones and Gems & Jewelry metals such as diamonds, other precious stones, gold, silver and platinum 607 Trading, Distribution, Warehousing & Value added Logistics services such as Packing, Re-Packing, Labeling & minor assembly 1366 Commercial Building- Office, shopping, banking, retail, showroom Commercial Service Apartment, guest houses , hotel, residences , Dormitories Amusement & entertainment Parlors 9106 Institution Coaching & Training Facilities 130 Common Use Incubation Facility 607 Total Requirement 43156

5.3 Utilities There is no requirement of additional utilities for the proposed multi sector Activity Mix at the SEZ. The existing utilities of the SEZ will be extended to the new Units & facilities also. For any new development requirement as relating to multi sector operation, emphasis shall be on reducing/removing the perceived inefficiencies of the region as they exist today. The existing development has provisioned requisite capacities relating to power, water and sewerage which are very critical issues in determining

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the investor's preference of SEZ. This has been extremely important while marketing the SEZ before Foreign Direct Investors. Internal infrastructure in terms of roads, electricity, water supply and sewerage has been envisaged for the SEZ taking best in class benchmarking.

Roads: About 15 % of the total SEZ area has been allocated for roads, which has been constructed in line with International standards. The existing internal road network within SEZ comprises of 30m, 24m and 18m Right of way (RoW). All roads have been developed, as per demarcations in the layout plan. (Figure- SEZ LAYOUT).

5.4 Economic Impact of GMR Airports - Hyderabad

The SEZ already has seen investment to the tune of 500cr that had induced direct employment of 500jobs during construction phase. In its current operation phase 6 different units within SEZ are currently providing employment to more than 550 Professionals & technicians. It is expected that with the new structure of SEZ with additional sectors, it will be able to attract more than 2000cr of investment in a span of next 10 years that will attract more than 2000 Job during construction phase & able to generate more than 16000 jobs overall due to direct employment.

5.5 Employment Generation Commensurate to Expansion

The Project is expected to generate more than 16000 direct employments and double the figure indirect employment across 5-6 years.

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6.0 Rehabilitation and Resettlement (R&R)

The present proposal is for the change of Aviation SEZ to Multi Sector SEZ that will have Aviation, Pharma, Gems & Jewelry, electronic, etc. sectors within the gamut of approved list of activities. No additional land acquisition is involved as part of the proposed change.

Hence, no resettlement and rehabilitation is involved.

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7.0 Project Schedule and Cost Estimate The project is in developed state as aviation SEZ which is now being converted to Multi sector SEZ. This change is not expected to generate requirement for any new infrastructure creation as relating to newly envisaged activities within SEZ.

8.0 Analysis of Proposal GHIAL’s SEZ has seen limited growth during lasts 6 years and is presently operating at just 11% occupancy. With the revised sector focus & the business interests received from various related industry segments in the identified sectors, it is perceived that GHIAL would be able to capitalize upon the opportunities in next 3-5 years to make the SEZ fully operational with diverse but coherent industrial units, that will in long run will provide requisite impetus to develop the region as an economic hub of Hyderabad with Airport City as it core.

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