Establishment of Vatwa – – Mega Pipeline

Logistics Infrastructure and Industrial Area/Parks Government of Contents

Project Concept 3 Gujarat – Competitive Advantage 5 Market Potential 7 Growth Drivers 7 Project Information 10 - Location Analysis - Infrastructure Availability - Key Considerations - Existing Treatment Infrastructure - Demand Assessment - Technology Options - Manpower - Potential collaborations Project Financials 19 Approvals & Incentives 22 Key Department Contacts 23

Page 2 Project Concept (1/2)

GIDC Overview

Gujarat Industrial Development Corporation (GIDC), established in 1962 by Government of Gujarat, as the nodal agency to oversee industrial development in the state by setting up industrial estates and promoting industrial growth. GIDC has established total 202 estates till date. The primary functions of the corporation are to 1. Identify, acquire and aggregate land in the state suitable for industrial development 2. Plan and develop aggregated land into industrial areas 3. Plotting and allotment of land 4. Providing basic infrastructure in industrial areas Additionally, to address specific needs, GIDC also develops special infrastructure like water augmentation and distribution infrastructure, culverts, over bridges, training centres, warehouses, etc. GIDC also upgrades existing infrastructure facilities in the established industrial estates periodically. Through the proposed project GIDC intends to improve the effluent treatment and disposal facilities in the region.

Ahmedabad Region

The region for which the project is being proposed is located in District which is part of North Gujarat. The major industrial sectors in the region are - textile and apparel clusters including chemicals and dyes, drugs and pharmaceuticals, agro and food processing, among others. The region in focus perimeters the Eastern side of Ahmedabad City, running from Naroda at the Northern tip right to Narol at the Southern end of the city.

Location of project in

Page 3 Project Concept (2/2)

The project envisages a “Mega Pipeline through Vatwa Naroda and Odhav” industrial nodes

Existing 120 MLD pipeline which was commisioned in 2001 passes through the industrial nodes of Naroda - New Nikol – Odhav – – Vatwa- Narol – Sahwadi – Pirana GIDC and discharging Present the treated effluents into downstream River Scenario However major issues have arisen leading to rethinking of the existing infrastructure

Upgraded environmental norms of discharging points,

Degraded condition of existing pipeline due to poor maintenance,

Industries dumping effluents into Kharicut Canal meant for irrigation purpose

Multiple unaccounted for connections discharging in the system

Strengthen infrastructure - Mitigate the existing issues being faced with the current infrastructure & evaluate options for better disposal Objectives location of the Project Separate entity to manage operations - Create a separate company to manage the operations of the mega pipeline

Increase scale of Operation - Merge other industries from nearby industrial nodes in the pipeline project who are discharging effluents into the Kharicut canal

The proposed stakeholders in the project currently have an effluent Need for load of 30 MLD and a future requirement of 50 MLD. Along with this Mega the possibility of including other small CETPs and industries along Pipeline with future alignment shall also be considered, which will increase the capacity requirement to more than 100 MLD

In order to carter this demand, the stake holders are proposing construction of an improved Mega Pipeline and also form a company for it’s operation and management

Page 4 Gujarat - Competitive Advantage

Gujarat

Gujarat is one of the leading Industrialized States in and the State has attracted cumulative FDI worth US$ 12 billion “Gujarat ranked first in from April 2000 to March 2015 ease of doing business as per DIPP report 2015” Ease of Doing Business: Only state which comply 100% with Environmental procedures. Gujarat fares highly when it comes to setting up a business, allotment of land and obtaining a construction permit

Flourishing Economy: State contributes 7.2% of the Nation GDP and shows leadership in many areas of manufacturing and infrastructure sectors. Gujarat’s SDP (State Domestic Product) at current price registered a growth of 11% during the year 2014-15.

Key Industries: Gujarat is the leader in key industrial sectors such as chemical, petrochemical, auto and its allied sector, pharmaceuticals, engineering, textile, jewellery etc.

Strategic location and excellent infrastructure: Located on the west coast of India, Gujarat is well connected to the major cities of the world by air and sea routes. The state has 45 ports, 12 domestic airports and 1 international airport in addition to an extensive rail and road network

Well connected to the major cities of the world by air and sea routes. The state has 45 operational ports, 12 domestic airports and 1 International airport in addition to an extensive rail and road network.

38% (564 km) of the 1500 km length of DFC will pass through Gujarat which includes 62% of total area of Gujarat (18 out of 33 districts within the influence area) Investment potential for Gujarat is US$ 50 bn (60% of total investment potential in DMIC)

Presence of over 1100 manufacturing unit comprising of small and large industries in PCPIR including chemical, petrochemical, engineering, plastic, dyes & pigments, textile etc. DMIC

Page 5 1 USD = 67 INR Gujarat - Competitive Advantage

A leading investment destination

High economic growth and industrial development

Average annual GSDP growth rate from 2004-05 to 2014-15 was about 12.11 percent State has the distinction of India’s most industrially developed state Accounts five percent of total India’s population and about a quarter of India’s goods exports

A STRONG GROWTH ENGINE

Gujarat’s Industrial Policy 2015 offers attractive incentives and Gujarat has developed concessions for world class infrastructure prospective investors The state has 45 Individual policies in all operational ports, 12 key industrial sectors domestic airports and 1 Gujarat has good identified by the International airport in educational infrastructure government – Textile, IT, addition to an extensive with premier institutes in Electronics, Tourism, etc. rail and road network. management, design, planning, petrochemicals A 2,200 km gas grid Policy Incentives supplies gas to the 786 Industrial Training industrial areas Institutes (ITI) 283 government, 183 government aided and Facilitating Infrastructure 300 self financed 390

Rich Labour Pool

Key Focus Industrial Sectors

Textiles Chemicals & Petrochemicals Pharma Biotech

Engineering Auto & Auto Ancillaries Gems & Jewellery Electronics & IT

Page 6 GSDP – Gross State Domestic Product Market Potential & Growth Drivers

Gujarat - Growth drivers and indicators

GSDP of Gujarat at Current Prices in Trillion Steady Growth INR

9% 7.82 7.26 6.71 6.05 Gujarat has witnessed steady growth in Gross Domestic product over the last decade At current prices, Gujarat’s GSDP was about INR 7.82 trillion during 2014-15. The state’s GSDP expanded at 2011-12 2012-13 2013-14 2014-15 a CAGR of ~9 percent from 2011-12 to 2014-15. GSDP (in trillion INR) Source: Socio – Economic review 2015-16, Directorate of Economics and Statistics Gujarat, Government of Gujarat Percentage distribution of GSDP Focus on Industrialization

The secondary sector contributes to ~35% of GSDP 20.76% 34.73% 44.51% Growth was pushed by the manufacturing, construction and electricity, and gas & water supply sectors. Primary Secondary Tertiary Source: Socio – Economic review 2015-16, Directorate of Economics and Statistics Gujarat, Government of Gujarat

Dedicated There are 19 functional Special Economic Zones (SEZ) in Gujarat. Zones Another 12 have In-principle approval, Dahej Petroleum, Chemical and Petrochemical SIR is already functional. Mandal-Becharaji and Dholera SIR are in advanced stage

Industrial Gujarat Government has renewed thrust for key industrial sectors Policy through new incentives and a responsive frame work in the recently launched Industrial Policy 2015

Page 7 Market Potential & Growth Drivers

Key sectors driving growth in Gujarat

In 2012, Government of Gujarat introduced Textile policy. Textile Sector In 2014-15, Gujarat was the largest producer (31.3 percent) and exporter (60.0 per cent) of cotton in the country The textile industry contributes around 6.0 per cent to the total industrial production in the state

Source: Ministry of Textiles, 1As of June, 2015

Gujarat accounted for about 36.4 per cent of the national production of Chemicals & chemicals over 2014-15. Petrochemicals Sector It is the highest contributor to the total national production of petrochemical products. GPCPSIR is one of the few functional Chemical and Petrochemical region in India. Source: Gujarat report – November 2015, IBEF report

The state’s engineering sectors contribute ~18 percent to state’s total Engineering industrial production and ~9 percent of the national engineering output. & Automotive Sector The sector comprises more than 300 units in the large enterprises sector and over 75,000 units in MSMe Source: Gujarat report – November 2015, IBEF report

Pharma Gujarat contributed 30-35 percent to India’s pharma sector’s turnover Sector and around 28 percent to India’s pharma exports during 2014-15. Source: Gujarat report – November 2015, IBEF report

Effluent treatment infrastructure in Gujarat

Common Effluent Treatment Plants in Gujarat Placed second in the country in number of operations CETPs Ahmedabad Gujarat has 28 operational CETPs approved by GPCB which amounts to a total installed capacity Vadodara of ~500 MLD CETPs are concentrated in Ahmedabad, Bharuch, Rajkot Surat and Vapi regions Bharuch Four major effluent disposal pipelines Surat

CETP Vapi Disposal Pipeline Source: Gujarat State Pollution Control Board (GPCB)

Page 8 GPCPSIR – Gujarat Petroleum, Chemical & Petro Chemical Special Investment Region Market Potential & Growth Drivers Potential

Ahmedabad

Locational Location: Ahmedabad is located in Central Gujarat, and is the largest Advantage city in the state . Ahmedabad is an industrial hub for textiles and is popularly known as the ‘Manchester of India’.

Well Connected: Ahmedabad is well connected to major locations such as Delhi (926 km) and Mumbai (526) through National Highway 8 and Delhi-Mumbai Industrial Corridor (DMIC) as well as Railway. Ahmedabad is also well connected to the other industrial nodes of the state Vadodara, Ankleshwar, Surat, Vapi and Rajkot.

DMIC Influence: 62% of the total area of Gujarat would be benefitted by DMIC development. The Delhi-Mumbai Industrial Corridor passes through Ahmedabad resulted in a key destination for attracting industrial investments. DMIC

Key growth driving industrial Textile Pharma Dyes & Pigments Automobiles Food Processing sectors Industries Base: Home to major production houses like Nova Petrochemicals, Reliance Industries Ltd., Suzlon Fibres, Mills, Chiripal Industries in textiles; Cadila, Intas and others in Pharma; Tata, Ford, Maruti, Honda in Automobiles

Dedicated Industrial zones: There are 20 main Industrial Estates including Sanand, Vatwa, Naroda, 12 Special Economic Zones, and 10 Industrial Parks/Developers in Ahmedabad district. Upcoming Automobiles hub in Sanand–Viramgam–Mandal corridor

Employment Generation: Organized industrial employment in registered factories and service enterprises has been significantly high with over 2 lakh people employed by MSME segments as of 2015-16..

Page 9 DMIC – Delhi Mumbai Industrial Corridor GPCPSIR – Gujarat Petroleum, Chemical & Petro Chemical Special Investment Region Project Information

Location Analysis

Key stakeholders contributing to industrial growth are the estate established by Gujarat Industrial Development Corporation in the region Naroda, Odhav, Kathwada and Vatwa GIDC along with Textile industry cluster at Noral are key industrial nodes in the region

Map of Existing Industry Clusters

Ahmedabad

Page 10 Map not scale. Representation purpose only. Project Information

Location Analysis

The region predominantly houses Textile, Pharmaceuticals, Plastic, Chemicals and Engineering industries in the industrial estates Three nodes which have currently committed to participate in creating the infrastructure are Naroda, Odhav and Vatwa

Zone 1 - Naroda GIDC

Scale of Industries - Medium and Small scale Type of Industries - Engineering, Plastic Industries, and Chemical Industries Major Industries - Reliance Textile (Vimal), Nirman Textile Mills Pvt. Ltd., Nishan Syntex Pvt. Ltd.

Zone 2 – Odhav GIDC

Scale of Industries - Medium and Small scale Type of Industries - Engineering, Plastic Industries, Textile Industries and Chemical Industries Major Industries - Neptune Textile Mills Pvt. Ltd., Stanmark Pharmaceutical , CMC India Pvt. Ltd., Elite Engineering & Allied Products

Zone 3 – Vatwa GIDC

Scale of Industries - Medium and Small scale Type of Industries - Engineering, Pharmaceuticals, Textile, Plastic and Chemical Industries Major Industries - Alps Chemicals Pvt. Ltd., Associated Dyestuff Pvt. Ltd., Swiss Pharma Pvt. Ltd.

Page 11 Map not scale. Representation purpose only. Project Information

Infrastructure Availability

Existing Existing Well connected with Broad Gauge railway National Highway 8 passes through the to Ahmedabad, Delhi and Mumbai district connecting it to major national cities Proposed Also connects to major industrial Delhi-Mumbai Dedicated Freight Corridor centres, which includes Gandhinagar (28 (DFC) will pass through the region km), Vadodara, Bharuch (182 km), Surat Ahmedabad/Vadodara - Dholera Rail (278 km), Anand (73 km), Navsari (301 Linkage for connectivity with Dedicated km) and Mumbai ( 516 km) Freight Corridor is being considered Proposed Ahmedabad Vadodara National Expressway to be extended to Mumbai

Existing Existing Sardar Vallabh bhai Patel Kandla Port (Kutch) – 100 MMTPA (~300km) international airport located in the Mundra Port (Kutch) – 104 MMTPA (~340km) northeast of Ahmedabad City Pivav Port – 9 MMTPA (~300km) Airport is well connected to all Dahej Port - 22 MMTPA (~200km) important national and international destination through Indian as well as Foreign carriers

Key Considerations

Key aspects taken into consideration while proposing a solution for the issue 1. Excess flow through the existing pipeline and poor quality of treated effluent has damaged the existing infrastructure. 2. Several units are dumping treated/non treated effluent in to Kharicut canal meant to carry raw water. 3. Environment and pollution control boards are discouraging discharge into rivers for new effluent treatment and discharge projects, hence new options of point near Gulf of Khambhat of discharge shall have to be evaluated. 4. To make the scale of the project feasibly , prospective future demand should also be evaluated while designing the project.

Page 12 Project Information

Existing Effluent Treatment Infrastructure

GPCB approved CETPs in the influence area

Sr. No. Name Listed Members Capacity (MLD) 1 Naroda Enviro Projects Ltd. 180 3.5 2 Odhav Green Enviro Project Association 2 1.5 3 Odhav Enviro Project Ltd. 54 1.6 4 Gujarat Vepari Maha Mandal Sahkari 372 1.0 Udhyogik Vasahat Ltd. 5 Green Environment Services Co-op. Society 671 16.0 Ltd. - Vatwa 6 Narol Dyestuff Enviro Society 27 0.1 Source: GIDC

Map not scale. Representation purpose only. Page 13 GPCB – Gujarat Pollution Control Board CETP – Common Effluent Treatment Plant Project Information

ExistingExisting Effluent Treatment Infrastructure

Details of Existing Effluent Disposal Pipeline

Sr. No. Particulars Details 1 Total Length 27.0 km 2 Diameter of Pipe 1000 mm to 1600 mm 3 Capacity 120 MLD 4 Year of commissioning 2001 5 Passing through Naroda - New Nikol – Odhav – Vastral – Vatwa- Narol – Sahwadi – Pirana 6 Name of stakeholders 1. Naroda Enviro Pvt. Lt.d contributing to the disposal 2. Reliance Industries pipeline 3. Odhav Enviro Pvt. Ltd. 4. Odhav Green Enviro Pvt. Ltd. 5. Gujarat Vehpari Mahamandal, Odhav 6. Vatwa Green 7. Narol Textile Source: GIDC

Map not scale. Representation purpose only. Page 14 Project Information

Demand Assessment

Existing Discharge Treated Effluent Contributors

The current effluent disposal pipeline is designed for a flow of 120 MLD.

It carries treated effluent from four main industrial nodes Naroda, Odhav, Vatwa and Narol. These nodes house more than 1500 industries. Diffuser Location

After collection the treated effluent is then diffused in Diffuser Location downstream of river Sabarmati. Additional Discharge

However there are several industrial & domestic unaccounted for connections which tapping into the pipeline, Map not scale. Representation purpose only. which as resulted in massive silting, back flow and degradation of existing pipeline.

Sr. No. Name Quantity of Effluent (MLD) 1 Naroda Enviro Pvt. Ltd. 20.0 2 Reliance Industries 4.0 3 Odhav Enviro Pvt. Ltd. 1.5 4 Odhav Green Enviro Pvt. Ltd. 0.5 5 Gujarat Vehpari Mahamandal, Odhav 0.5 6 Vatwa Green 6.0 7 Narol Textile 90.0 Total 122.5

Page 15 Source: GIDC Project Information

Demand Assessment

The new mega effluent discharge line being envisioned has the following requirements

Planned Demand

Current pipeline is designed for 120 MLD with treated effluent from seven stakeholders

However for the new project envisioned , the share of Narol Textile has been excluded because they are constructing their independent effluent discharge line for their demand of 90 MLD.

Excluding Naroda, the existing demand is ~32 MLD and future demand from these stakeholders is ~50 MLD

Sr. No. Name Existing Quantity of Future Demand Effluent (MLD) (MLD) 1 Naroda Enviro Pvt. Ltd. 20.0 10.0 2 Reliance Industries 4.0 6.0 3 Odhav Enviro Pvt. Ltd. 1.5 1.5 4 Odhav Green Enviro Pvt. Ltd. 0.5 0.5 5 Gujarat Vehpari Mahamandal, Odhav 0.5 1.0 6 Vatwa Green 6.0 30.0 Total 32.5 50.0

Source: GIDC Diffuser Location Diffuser locations

Treated effluent is currently being diffused in downstream of river Sabarmati

However the environment and pollution control boards are discouraging discharge into rivers for new effluent treatment and discharge projects, hence new options of point of discharge are being evaluated.

As an option, diffusion point near Gulf of Khambhat, is also being proposed. It is ~130 kms from the current location .

Page 16 Project Information

Demand Assessment

Future Demand Diffuser locations

In addition to the existing stakeholders who have committed to the project, there are other important industrial nodes falling Nadiad between the existing industrial cluster in Ahmedabad and the proposed diffuser location

Vadodara is one such industrial Vadodara node which houses chemical based industrial units.

The diffuser point is considerably far from Ahmedabad industrial cluster. Therefore to make the pipeline length feasible, Treated discharge from chemical units in Vadodara considerations have been made to could boost the demand to an estimated 100 – 150 add treated discharge from MLD chemical units in Vadodara in the proposed effluent discharge line.

Technologyology ooptionsp

Pipeline Pumping Stations

Pipe lines will need to be laid on The mega pipe line is intended to pump treated three terrains for disposal into the effluents from CETPs to diffuser location. The pumping sea – Onshore, Coastal & Offshore station will be installed downstream of the effluent Onshore treatment plant to the designated discharge point.

Preferred material – Carbon Steel Pumping Station Technology Coastal Energy efficient technologies should be evaluated for

Preferred material – Carbon Steel the pumping station design. Offshore

Preferred material – HDPE

Page 17 HDPE - High-density polyethylene Project Information

Manpower

Unskilled and skilled manpower will be generated during the construction and operation phases of the mega pipeline.

Depending on the degree of mechanization during construction and number of pumping stations, 100-120 workers (incl. both phases) could be employed on the project.

Preference shall be given to local people during the engagement of the construction labourers, contractors and workers during construction and operation phase.

Leading Players/ Possible Collaborations

Construction Technology Top 10 EPC Companies in India Top 10 Water Treatment Companies in India

L&T Construction SFC Environnemental Technologies GMR Infrastruture VA Tech Wabag GMBH JP Associates Thermax India NCC Infra GE Water Hindustan Construction Company Siemens water Tata Projects Voltas limited Lanco Hindustan dorr-oliver limited IVRCL Wog Technologies Gammon India UEM India Pvt. Ltd Punj lloyd infrastructure ion exchange India ltd limited Establishment of a MMegaega Pipeline

Government of Gujarat

Manpower & RawRa Materials are easily availableavailable in GGujaratuja

Page 18 Project Financials

Project Structure & Implementation Model

Considering the substantial cost of the Project, the State as well as the Central Government provide heavy incentives to set up Common Environmental Infrastructure in states. However the incentives are disbursed to Government Bodies. Therefore a Public Private Partnership model where the state body provides Viability Gap Funding is the go to model.

Thus, the Project Structure proposed for the Pipeline Project is BOT(Annuity) Model where the State Government would offer yearly annuities to the Developer(Investor) reciprocal to the financing, construction and maintenance of the effluent discharge piepline

The Investor will have to strictly adhere to the competitive bidding procedures followed by the Government of Gujarat in all the components such as construction, operation & maintenance etc.

A Special Purpose Vehicle (SPV) has already been proposed for operations and management of the project. The SPV create an Escrow Account for the same to receive the annuities from the State Government. Since the disbursement of assistance would be after verification of expenditures, Investor may opt for Bridge Loans during the initial period.

Special Purpose Vehicle (SPV) stakeholders Sr. Proposed SPV members for No. Mega Pipeline 1 Industries Commissioner (Chairman) 2 Chairman Naroda CETP 3 Chairman Odhav CETP 4 Chairman Vatwa CETP 5 Chief Engineer, GIDC 6 Add. Industries Commissioner (IC office) 7 Dy. Commissioner AMC 8 Academic Expert - HOD Environment department Nirma/ LD college of Engineering 9 Expert from the field – Member secretary GCPC *Note-Proposed Structure is indicative and subject to change

Page 19 Project Financials

Project Cost

Case study of existing 90 MLD mega pipeline at Saykha (Dahej)

A 90 MLD effluent disposal pipeline was constructed and commissioned at Dahej Petroleum Chemical and Petrochemical Special Investment Region in 2005.

Saykha effluent disposal pipeline cost details Sr. Particulars Details No. 1 Length of on-shore pipeline (Material - HDPE) 39 kms 2 Length of coastal pipeline (Material – HDPE) 9 kms 3 Length of off-shore pipeline (Material – Carbon Steel) 4.5 kms 4 Pumping Station - Vilayat 45 MLD 5 Pumping Station - Dahej 90 MLD Total infrastructure project cost INR 176 crore Project consultancy cost INR 4 crore Total Project cost INR 180 crore Source: GIDC

Dahej 90 MLD Effluent Discharge pipeline

Page 20 HDPE - High-density polyethylene Project Financials

Project Cost

Expected project cost for the prospective project

The current mega pipeline length starting from Naroda GIDC to existing diffuser point is 27 kilometres

Considering the distance from existing to the proposed diffuser point is approximately 100 kilometres, total project length can be assumed to be around 130 kilometres

Off-shore line using HDPE pipe Sr. No. Particulars Details 1 Approx. offshore length 10 km 2 Unit cost for 100 MLD pipeline INR 1,20,000/RMT Total offshore line cost ~INR 120 Crore

Off-shore line using Carbon Steel pipe Sr. No. Particulars Details 1 Increase in project cost from HDPE pipeline 15% Total offshore line cost ~INR 140 Crore

On-shore line using HDPE pipe Sr. No. Particulars Details 1 Approx. offshore length 130 km 2 Unit cost for 100 MLD pipeline INR 30,000/RMT Total offshore line cost ~INR 420 Crore

Number of pumping stations depend on the topography of the route

Total project cost could vary from approximately INR 550 - 600 crore

Source: GIDC estimates

Page 21 RMT – Running Metre Approvals & Incentives

Environmental Clearance

The Ministry of Environment Forests (MoEF) mandates that prior environmental clearance is necessary before establishing any infrastructure for Environmental Services (as per Impact Assessment Notification on 14th September, 2006). An Rapid Marine Environment Impact Assessment (EIA) has to be conducted to assess impacts and submitted to Gujarat Pollution Control Board (GPCB).

Financial Assistance

Key Approvals required to be obtained in order to be eligible for Financial assistance from the Government of Gujarat are as follows:

Incentives

Various Incentives from State as well as Central Govt. can be availed for the CETP. These incentives are listed below:

Note - MoEF : Ministry of Environment, Forest and Climate Change DIPP : Department of Industrial Policy & Promotion DoC&P : Department of Chemicals & Petrochemicals IMD: Industries & Mines Department Government of Gujarat

Page 22 Ministry of Environment, Forest and Climate Change (MoEF), Government of India www.moef.nic.in Department of Industrial Policy & Promotion (DIPP), Government of India www.dipp.gov.in

Department of Chemicals & Petrochemicals, Government of India www. chemicals.nic.in Gujarat Pollution Control Board (GPCB) www.gpcb.gov.in

Gujarat Industrial Development Corporation www.gidc.gov.in Industries & Mines Department www.imd-gujarat.gov.in

Office of Industries Commissioner www.ic.gujarat.gov.in

Industrial Extension Bureau www.indextb.com

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

Gujarat Industrial Development Corporation Address: Udyog Bhavan Block No.4, 2nd Floor, Sector 11 Gandhinagar -382017 Gujarat ,India Phone Number : (79) 23250632; 23250634 Website : www.gidc.gov.in