Industry Project
Wind Power: Clean & Green Energy
Carbon-free way to a win-win situation for the developer, consumer, government and the environment.
Power for all by 2012 is what the Government of India has planned for us. The achievements of the target set for power sector during eleventh five-year plan is likely to play a critical role in the success of the Indian growth story. The tempo of development can only be sustained if the demand supply gap of the power requirements is matched in real time. Government of India has targeted 78,577 MW of power in the eleventh five year plan. The power sector targets will be met through energy produced via various modes such as thermal, hydro and renewable energy sources such as Wind and Solar energy.
Countries are waking up to the call of climate change and global warming. The safest bet in the changing world order is the development and the use of clean and renewable energy such as wind. Also wind power producers can reap the benefits of earning carbon credits from the companies' world over who are emitting higher levels of CO2 in the atmosphere. Use of wind energy can be traced back to the ages of human existence. Wind energy was used in various forms such sailor ships, irrigation systems powered by wind.
Technically speaking, wind power is the conversion of wind energy into useful form, such as electricity, using wind turbines. Most modern wind power is generated in the form of electricity by converting the rotation of turbine blades into electrical current by means of an electrical generator. In windmills (a much older technology), wind energy is used to turn mechanical machinery to do physical work, such as crushing grain or pumping water. There is an estimated 72 TW of wind energy on the Earth that can potentially be converted to electricity and that is commercially viable.
Wind energy scenario in India
India is the fourth largest producer of wind energy producing 7093 MW after Germany (21283 MW), Spain (13400 MW) and USA (12925 MW) as per June 2007 figures. The potential for harnessing wind power is estimated at 45,000 MW at 50 m above ground level. Wind energy programme was initiated way back at the end of sixth five year plan and market oriented strategy has accelerated its commercial use and development in the coming years. India has a long coastline of about 7517 km, spread on the western and eastern shelves of the mainland and also along the Islands. Long coastline is an important natural resource for the development of wind power in terms of offshore installation as well as installation all along the coastline. M/s Pandian Chemicals, Madurai was the first private windfarm developer to commission 250 Kw Wind energy generators (WEGs), NEPC-Micon make at Kattadimalai, Tamil Nadu in year 1990.
Installed capacity
Wind farms have been installed in more than 9 states. The capacity addition of wind power projects in India during April to September 2007 was around 600 MW.
State wise installed capacity in MW as on 30th September 2007 totaling 7660.2 MW is as follows:
1) Andhra Pradesh - 122.4.
2) Gujarat - 806.0.
3) Karnataka - 853.2.
4) Kerala - 2.0.
5) Madhya Pradesh - 57.3.
6) Maharashtra - 1622.2.
7) Rajasthan - 493.9.
8) Tamil Nadu - 3698.9.
9) West Bengal - 1.1.
10) Orissa - 3.2.
The highest capacity addition was achieved during 2006-07 amounting to 1773 MW.
Potential Sites Identified
Recently Shri. Vilas Muttemwar, Minister of State in the Ministry of New and Renewable Sources has informed the upper house in a written reply to a question, that 216 potential sites having annual mean wind power density of 200 Watt/square meter or more at 50 meter elevation, have been identified, which are considered suitable for installation of wind power project. Tamil Nadu leads the pack at 41 potential sites identified followed by Gujarat at 38, Andhra Pradesh at 32 and closely followed by Maharashtra at 31. (See Table A)
Table A: Potential Sites
State wise, Location, Total
Andhra Pradesh: Ananthapur, Vishakapatnam, Kurnol, Cuddapah, Chittur, Nellore, Rangareddy, 32
Gujarat: Kutch, Junagadh, Rajkot, Surendranagar, Jamnagar, Amreili, Porebander,Bhavnagar, 38
Karnataka: Chikkamagalur, Dharwad, Chamarajanagar, Belgaum, Raichur, Bijapur, Chitradurga, Gadag, Bellary, 26
Kerala: Palakkad, Idukki, Thirvananthapuram, 17
Madhya Pradesh: Dewas, Betul, Shajahpur, Ratlam, Khargone, 7
Maharashtra: Kolhapur, Satara, Nasik, Dhule, Nandurbar, Sangli, Aurangabad, Ahmednagar, Pune, Beed, Sindhudurg, Latur, 31
Orissa:Balasore, Ganjam, Koraput, Cuttack, Puri, 6
Tamil Nadu: Thirunelveli, Coimbatore, Chengelpet, Kanyakumari, Tuticourin, Theni, Erode, Dindigul, Madurai, 41
Rajasthan: Chittorgarh, Sikar, Jaisalmer, Barmer, Jodhpur, 7
Uttarakhand: Narendranagar 1
West Bengal: South 24 Paraganas, 1
Andaman & Nicobar: Nicobar, 1
Lakshadweep: Kavarathi, 8
Total: 216 sites
Eleventh five year plan (2007-2012)
Targets for New and Renewable Energy Integrated Energy Policy Report (IEPR) is an expert committee constituted by the Planning Commission to study and cover all sources of energy including renewable energy options.
Projections for renewable energy as per the report are to the tune of 5 to 6 per cent of total energy requirements by 2031-32. The recommendations of the IEPR are yet to be accepted by the Government. Meanwhile, the Ministry has proposed an outlay of Rs.10,460 crore for the 11th Plan period for development of new and renewable energy in the country. Ministry of new and renewable energy (MNRE), Government of India has planned a target of 10,500 MW wind power during the 11th five-year plan. Out of which, Tamil Nadu has proposed a target of 2500 MW during the 11th plan period.
Private Sector Participation
The Government of India has been encouraging private sector participation and investment in the wind energy sector. Government is promoting setting up of commercial wind power projects in the country by providing fiscal incentives such as concessional import duty on certain components of wind electricity generator, excise duty exemption, ten years tax holiday on income generated from wind power projects, benefit of accelerated depreciation and loan from Indian Renewable Energy Development Agency (IREDA). Today, the capital cost of wind power projects range between Rs. 4 to 5 crore per MW. This gives a levelised cost of energy generation in the range of Rs. 2.00 to Rs. 2.50 KWh, taking into consideration the fiscal benefits extended by the Government. A good local production base for wind turbines now exists in the country, with 8 manufacturing companies active in this sector. Centre for Wind Energy Technology (C-WET) is providing technical support including detailed wind resource assessment to identify further potential sites.
Impact on EnvironmentAddressing a Conference on "Clean Energy & Energy Efficiency" organised by PHD Chamber of Commerce and Industry, Shri Vilas Muttemwar has said that Renewable Energy is the ultimate answer to the climate change and global warming problem. This carbon free energy is seen as energy of the future whose development and deployment requires all possible encouragement.
Wind Power ProjectsMSPL Ltd, the largest wind energy producer plans to double its capacity to 400 MW by 2010 from the existing 191.6 MW with an investment of Rs 1,100 crore. Plans to install an additional 34 turbines of 0.6 MW rated capacity each at Sunnadahalli, Chikmangalur District in Karnataka. Plans to develop 20 MW wind farm at Hospet. Project commissioning expected by March 2008.
Hong Kong based CLP Group (earlier China Light and Power Company) is setting up a 100 MW wind farm in Gujarat. For this purpose the company has given an order to Enercon India Ltd for installation of 126 Nos. 800 kW WEGs at Samana, Dist. Jamnagar in Gujarat. Roaring 40's - an equal joint venture between CLP & Hydro Tasmania is developing a 50 MW wind farm at Khandke in Maharashtra. Construction commenced in May 2007 and will be commissioned shortly. The company plans to establish about 250 MW of wind power capacity in India by 2010.
BP Energy has plans to develop a 100 MW wind farm in Maharashtra.
DLF Ltd, the leading real estate developer plans to setup a 150 MW wind farm in Kachchh District of Gujarat. Orders already placed with Suzlon Energy for 100 Nos. 1500 kW WEGs to be installed by March 2008. Another 25 MW wind farm planned in Karnataka. Order placed with Enercon India Ltd for installation and supply of components.
NALCO, a Govt. of India Public Sector Undertaking proposes to enter into wind power generation in India. Company is planning for a wind farm in Orissa.
NTPC Ltd., a Govt. of India Public Sector Undertaking, plans to develop a large size wind power project of around 250 MW capacity in India. As per corporate plan of NTPC, it is envisaged to add a capacity of 1,000 mw through renewable energy sources including 650 mw from wind energy by 2017.
Real estate developer Ansal Properties and Infrastructure Ltd has floated a 100% subsidiary company, Ansal API Energy Ltd, to manage its power business. Company plans to invest Rs100-200 crore every year in setting up wind energy farms in Gujarat and Rajasthan. The power generated will be used in its own projects and the surplus would be sold. It plans to earn carbon credits from such projects.
Tata Power is setting up a 100 MW wind power project in Maharashtra with the financial assistance from Asian Development Bank and IREDA. 50 MW wind power project at Khandke, District Ahmednagar is commissioned and have started works on 50 MW power plant at Bramhanvel in Dhule District.
Government of Kerala has given technical approval to Suzlon and Vestas India for developing wind power projects at Agali, Palakkad and Ramakkalmedu in Idduki District respectively. In the first phase, Suzlon is likely to installed 4.8 MW capacity and Vestas India 9.75 MW capacity during the FY 2007-08.
Reliance Energy is setting up a 150 MW wind power project at Sangli. Contract awarded to Suzlon Energy. Project implementation will be in 2 phases and completion expected by March 2008.
Gujarat Fluorochemicals (GFL) is India's largest refrigeration gas producer. It plans to generate 1,000 Mw of wind energy investing Rs 6000 crore within 5 years. UK-based consultancy is appointed to conduct the feasibility study.
Hindustan Zinc Ltd is setting up a wind power project of up to 75 mw in Gujarat and Karnataka. Project completion in phases during 2007 and 2008. Funding through internal accruals. Project Cost: Rs 400.00 crore.
*Credits: Sandeep Ravidutt Sharma, Foundation of Infrastructure Research Studies and Training (FIRST)
Mail your response to sandeep.ravidutt@gmail.com
Wednesday, January 16, 2008
Private Sector | E & P CZAR | Mukesh Ambani
Industry Project
Private Sector
E & P CZAR
Reliance Industries Limited (RIL) is the largest Indian Conglomerate having interest in diversified sectors such Exploration & Production (E&P), Petrochemicals, Refinery, Textiles and Retail. RIL's larger than life image is clearly reflected in its revenues for 2006-07, which is equivalent to 2.9% of India's GDP having clocked a net profit of Rs 11,943 crore. RIL contributes 12% of India's total exports. It is the largest producer of polyester fibre and yarn, 4th largest producer of Paraxylene (PX) and Purified Terephthalic Acid (PTA), 6th largest producer of Mono Ethylene Glycol (MEG) and 7th largest producer of Polypropylene (PP), besides being a pioneer in Indian Retail sector.
RIL is the brainchild of Late Shri Dhirubhai H. Ambani, who was the true visionary of his times. RIL started as a textile company in the late 1970's, Shri Dhirubhai Ambani single-handedly took it to greater heights spreading its wings to number of industry verticals. The company under the youthful leadership of Shri Mukesh D. Ambani has grown leaps and bounds in the recent years and is the darling of the bourses. Company is entering diversified sectors, trying to grab its pie of the infrastructure boom in India. RIL is the first and only private sector company from India to feature in the Fortune Global 500 list of 'World's Largest Corporations' since 2004 and ranks amongst the world's Top 200 companies in terms of profits.
Exploration & Production (E&P)
Industry OutlookAs per BP Statistical Review of World Energy 2007, proved world oil reserves continue to exceed 1.2 trillion barrels, equivalent to current production levels for more than 40 years. World's proven natural gas reserves now exceed 181 trillion cubic meters - 1 trillion cubic metres higher than last year and equivalent to current production for more than 60 years. OPEC members accounted for most of the increase.
Global demand for oil grew by 0.8% from 83.1 million barrels per day in 2005 to 83.8 million barrels per day in 2006. The International Energy Agency (IEA), in its world energy outlook, has estimated investment requirements of over US$ 8.2 trillion over the next two decades in order to bridge the demand supply gap. This is substantially higher than its earlier forecast of US$ 5.3 trillion, which underlines a positive demand outlook for energy.
India's Oil & Gas ScenarioDuring the year 2006-07, India's net import of crude oil and petroleum products grew by over 17% to an estimated US$ 39 billion, accounting for 20% of the total imports. According to Oil & Gas Journal (OGJ), India had 5.6 billion barrels of proven oil reserves as of January 2007, the secondlargest amount in the Asia-Pacific region (behind China).
India's share at the end of 2005 was a meagre 0.5 % of global oil reserves of 1,200 thousand million barrels, while it consumes 3.2 % of global oil consumption every year. India is a growing net importer of oil. The demand for more and more crude oil and gas in India has lead to more initiatives from the Government in the E&P arena paving way for private sector participation at a growing scale leading to more discoveries. New Exploration Licensing Policy (NELP) was formulated in 1997 providing an international class fiscal and contract framework for Exploration and Production of hydrocarbons. 162 exploration blocks have been awarded in first 6 rounds of NELP spanning 1999-2006, with exploration investment in the three phases estimated at about Rs. 45,000 crore.
Reliance Industries role in E&P
Reliance Industries Ltd (RIL) has benefited from the opening up of Exploration & Production sector. RIL has become India's largest exploration acreage holder in the private sector in India with 34 domestic exploration blocks covering an area of about 331,000 sq. km. This is in addition to its interest in one exploration block each in Yemen and Oman RIL also has 5 coal bed methane (CBM) blocks covering an area of about 4,000 sq. km.
RIL portfolio comprises of (i) 30% interest in Panna Mukta, Tapti (PMT) fields; (ii) 34 exploration blocks awarded by Government of India under NELP and Pre- NELP licensing rounds; (iii) exploration and production rights to 5 coal bed methane (CBM) blocks; and (iv) exploration interests in Yemen, Oman, East Timor, Colombia and Australia.
RIL - Highlights of year 2006-07
The Panna Mukta fields produced 1,766,474 tonnes of crude and 1,662 MMSCM of natural gas, reflecting a growth of 13% and 15% respectively. The Tapti field produced 2,228 MMSCM of gas and 9% higher volumes of condensate at 126,860 tonnes during FY 2006-07.
Average production in Block 9 of Yemen, in which we hold 25% interest, was at 5,500 barrels per day.
Company drilled 13 wells of which 6 were notified as discoveries.
On a cumulative basis, 51 exploratory wells have been drilled.
Gas discoveries in Dhirubhai-1 (D1) and Dhirubhai-3 (D3) in the KG-D6 block are scheduled to start production in the second half of FY 2008-09. Based on the initial reserve estimates, Initial Development Plan was submitted to the Director General of Hydrocarbons (DGH) in May 2004. An addendum was filed later in October 2006 for doubling of production capacity from 40 MMSCMD to 80 MMSCMD at an initial capital expenditure of US$ 5.2 billion. DGH and the Management Committee have since approved the addendum. The production rate of 80 MMSCMD is equivalent to 450,000 barrels of oil equivalent per day (BOEPD), which is about 25% of the current oil import in the country.
Field development of D1 and D3 gas discoveries in the block KG-D6 is progressing as per plan for delivery of first gas in the second half of FY 2008-09. This project is the first deepwater gas development project in India. This project will be completed in six years from the first discovery making it one of the fastest deepwater gas developments in the world.
RIL exploration and production of CBM is the first of its kind in India and is expected to be commercially operational by 2010. The development plans for the Sohagpur East and West blocks have been submitted to the DGH for approval.
NELP VII
Government is likely to offer 60 exploration blocks under VIIth round of New Exploration Licensing Policy (NELP-VII). NELP - VII will be launched in either Dec '07 or Jan '08. The blocks would comprise of 30 onshore, 15 shallow water and 15 deep water & ultra deep water in both east and west coast offshore area.
Major Discoveries made by RIL so far in the financial year 2007-08
May 2007
Two new discoveries made in May, one in the deep waters of East coast and another in the shallow waters of West coast of India. These are in the well KGD6- R1 in block KG DWN 98/3 (KG D6), and in the well GS01 B1 in block GSOSN- 2000/1 (GS01). The well is located at a water depth of 2010 meters, which is the deepest location to be drilled to date in this block. The well was drilled to a total depth of 4860 meters. The well encountered two gas-bearing zones and the data obtained from logging & Modular Dynamic Testing (MDT) confirmed the presence of hydrocarbons in the Mio-Pliocene intervals. This well has been notified to the DGH and concerned authorities as a new discovery, namely Dhirubhai 34, which is the 18th discovery in this block. This Block was awarded to the consortium of RIL (90%) and NIKO (10%) under the NELP I round of bidding.
July 2007
First hydrocarbon discovery was made in the Cauvery deep-water basin. The deep-water block CY-DWN-2001/2 (CYIII- D5) located in the Cauvery Basin, with an area of 14,325 square kilometers, was awarded to RIL under the bidding round of NELP III. RIL holds a 100 % participating interest in this block. This well was located in a water depth of 1185 meters and was drilled to a target depth of 4081 meters and terminated in the crystalline basement. The well encountered a clastic reservoir with gross hydrocarbon column of around 150 meters in Cretaceous section. The presence of oil and gas with condensate has been confirmed by several tests including Modular Dynamic Tester (MDT) and Drill-Stem Testing (DST).
September 2007
Oil discovery for the first time in the deepwater block KG-DWN-98/1 (KG-D4) located in the Krishna Basin. This deep-water block was awarded to RIL under first round of NELP bidding. RIL holds 100% participating interest in this block, which spans over an area of 8100 sq kms. The well was located in a water depth of 565 meters and was drilled to a target depth of 3595 meters.
November 2007
Gas Discovery in KG-OSN-2001/1 (KGIII- 5) located in the Krishna offshore basin in the east coast of India. The well (KGIII5-P1) is the second gas discovery in the Miocene clastics reservoir in the Krishna basin. This shallow water block, with an area of 1100 sq. kms, was awarded to RIL under biding round of NELP-III. RIL holds 100% participating interest in this block. The well was drilled at water depth of 151 m and was drilled to the target depth of 3500 meters. The well encountered clastic reservoir with gross hydrocarbon column of around 32 meters in Miocene section and 4 meters in Pliocene section.
Within a short span of six years as an E&P operator, company has discovered hydrocarbons in the four major offshore basins of India namely Krishna Godavari, Mahanadi, Saurashtra and Cauvery basin, with major commercial finds in deep waters. These discoveries have established RIL as a pioneer in the challenging deepwater exploration in India.
*Credits: Sandeep Ravidutt Sharma, Foundation of Infrastructure Research Studies and Training (FIRST)
Mail your response to sandeep.ravidutt@gmail.com
Private Sector
E & P CZAR
Reliance Industries Limited (RIL) is the largest Indian Conglomerate having interest in diversified sectors such Exploration & Production (E&P), Petrochemicals, Refinery, Textiles and Retail. RIL's larger than life image is clearly reflected in its revenues for 2006-07, which is equivalent to 2.9% of India's GDP having clocked a net profit of Rs 11,943 crore. RIL contributes 12% of India's total exports. It is the largest producer of polyester fibre and yarn, 4th largest producer of Paraxylene (PX) and Purified Terephthalic Acid (PTA), 6th largest producer of Mono Ethylene Glycol (MEG) and 7th largest producer of Polypropylene (PP), besides being a pioneer in Indian Retail sector.
RIL is the brainchild of Late Shri Dhirubhai H. Ambani, who was the true visionary of his times. RIL started as a textile company in the late 1970's, Shri Dhirubhai Ambani single-handedly took it to greater heights spreading its wings to number of industry verticals. The company under the youthful leadership of Shri Mukesh D. Ambani has grown leaps and bounds in the recent years and is the darling of the bourses. Company is entering diversified sectors, trying to grab its pie of the infrastructure boom in India. RIL is the first and only private sector company from India to feature in the Fortune Global 500 list of 'World's Largest Corporations' since 2004 and ranks amongst the world's Top 200 companies in terms of profits.
Exploration & Production (E&P)
Industry OutlookAs per BP Statistical Review of World Energy 2007, proved world oil reserves continue to exceed 1.2 trillion barrels, equivalent to current production levels for more than 40 years. World's proven natural gas reserves now exceed 181 trillion cubic meters - 1 trillion cubic metres higher than last year and equivalent to current production for more than 60 years. OPEC members accounted for most of the increase.
Global demand for oil grew by 0.8% from 83.1 million barrels per day in 2005 to 83.8 million barrels per day in 2006. The International Energy Agency (IEA), in its world energy outlook, has estimated investment requirements of over US$ 8.2 trillion over the next two decades in order to bridge the demand supply gap. This is substantially higher than its earlier forecast of US$ 5.3 trillion, which underlines a positive demand outlook for energy.
India's Oil & Gas ScenarioDuring the year 2006-07, India's net import of crude oil and petroleum products grew by over 17% to an estimated US$ 39 billion, accounting for 20% of the total imports. According to Oil & Gas Journal (OGJ), India had 5.6 billion barrels of proven oil reserves as of January 2007, the secondlargest amount in the Asia-Pacific region (behind China).
India's share at the end of 2005 was a meagre 0.5 % of global oil reserves of 1,200 thousand million barrels, while it consumes 3.2 % of global oil consumption every year. India is a growing net importer of oil. The demand for more and more crude oil and gas in India has lead to more initiatives from the Government in the E&P arena paving way for private sector participation at a growing scale leading to more discoveries. New Exploration Licensing Policy (NELP) was formulated in 1997 providing an international class fiscal and contract framework for Exploration and Production of hydrocarbons. 162 exploration blocks have been awarded in first 6 rounds of NELP spanning 1999-2006, with exploration investment in the three phases estimated at about Rs. 45,000 crore.
Reliance Industries role in E&P
Reliance Industries Ltd (RIL) has benefited from the opening up of Exploration & Production sector. RIL has become India's largest exploration acreage holder in the private sector in India with 34 domestic exploration blocks covering an area of about 331,000 sq. km. This is in addition to its interest in one exploration block each in Yemen and Oman RIL also has 5 coal bed methane (CBM) blocks covering an area of about 4,000 sq. km.
RIL portfolio comprises of (i) 30% interest in Panna Mukta, Tapti (PMT) fields; (ii) 34 exploration blocks awarded by Government of India under NELP and Pre- NELP licensing rounds; (iii) exploration and production rights to 5 coal bed methane (CBM) blocks; and (iv) exploration interests in Yemen, Oman, East Timor, Colombia and Australia.
RIL - Highlights of year 2006-07
The Panna Mukta fields produced 1,766,474 tonnes of crude and 1,662 MMSCM of natural gas, reflecting a growth of 13% and 15% respectively. The Tapti field produced 2,228 MMSCM of gas and 9% higher volumes of condensate at 126,860 tonnes during FY 2006-07.
Average production in Block 9 of Yemen, in which we hold 25% interest, was at 5,500 barrels per day.
Company drilled 13 wells of which 6 were notified as discoveries.
On a cumulative basis, 51 exploratory wells have been drilled.
Gas discoveries in Dhirubhai-1 (D1) and Dhirubhai-3 (D3) in the KG-D6 block are scheduled to start production in the second half of FY 2008-09. Based on the initial reserve estimates, Initial Development Plan was submitted to the Director General of Hydrocarbons (DGH) in May 2004. An addendum was filed later in October 2006 for doubling of production capacity from 40 MMSCMD to 80 MMSCMD at an initial capital expenditure of US$ 5.2 billion. DGH and the Management Committee have since approved the addendum. The production rate of 80 MMSCMD is equivalent to 450,000 barrels of oil equivalent per day (BOEPD), which is about 25% of the current oil import in the country.
Field development of D1 and D3 gas discoveries in the block KG-D6 is progressing as per plan for delivery of first gas in the second half of FY 2008-09. This project is the first deepwater gas development project in India. This project will be completed in six years from the first discovery making it one of the fastest deepwater gas developments in the world.
RIL exploration and production of CBM is the first of its kind in India and is expected to be commercially operational by 2010. The development plans for the Sohagpur East and West blocks have been submitted to the DGH for approval.
NELP VII
Government is likely to offer 60 exploration blocks under VIIth round of New Exploration Licensing Policy (NELP-VII). NELP - VII will be launched in either Dec '07 or Jan '08. The blocks would comprise of 30 onshore, 15 shallow water and 15 deep water & ultra deep water in both east and west coast offshore area.
Major Discoveries made by RIL so far in the financial year 2007-08
May 2007
Two new discoveries made in May, one in the deep waters of East coast and another in the shallow waters of West coast of India. These are in the well KGD6- R1 in block KG DWN 98/3 (KG D6), and in the well GS01 B1 in block GSOSN- 2000/1 (GS01). The well is located at a water depth of 2010 meters, which is the deepest location to be drilled to date in this block. The well was drilled to a total depth of 4860 meters. The well encountered two gas-bearing zones and the data obtained from logging & Modular Dynamic Testing (MDT) confirmed the presence of hydrocarbons in the Mio-Pliocene intervals. This well has been notified to the DGH and concerned authorities as a new discovery, namely Dhirubhai 34, which is the 18th discovery in this block. This Block was awarded to the consortium of RIL (90%) and NIKO (10%) under the NELP I round of bidding.
July 2007
First hydrocarbon discovery was made in the Cauvery deep-water basin. The deep-water block CY-DWN-2001/2 (CYIII- D5) located in the Cauvery Basin, with an area of 14,325 square kilometers, was awarded to RIL under the bidding round of NELP III. RIL holds a 100 % participating interest in this block. This well was located in a water depth of 1185 meters and was drilled to a target depth of 4081 meters and terminated in the crystalline basement. The well encountered a clastic reservoir with gross hydrocarbon column of around 150 meters in Cretaceous section. The presence of oil and gas with condensate has been confirmed by several tests including Modular Dynamic Tester (MDT) and Drill-Stem Testing (DST).
September 2007
Oil discovery for the first time in the deepwater block KG-DWN-98/1 (KG-D4) located in the Krishna Basin. This deep-water block was awarded to RIL under first round of NELP bidding. RIL holds 100% participating interest in this block, which spans over an area of 8100 sq kms. The well was located in a water depth of 565 meters and was drilled to a target depth of 3595 meters.
November 2007
Gas Discovery in KG-OSN-2001/1 (KGIII- 5) located in the Krishna offshore basin in the east coast of India. The well (KGIII5-P1) is the second gas discovery in the Miocene clastics reservoir in the Krishna basin. This shallow water block, with an area of 1100 sq. kms, was awarded to RIL under biding round of NELP-III. RIL holds 100% participating interest in this block. The well was drilled at water depth of 151 m and was drilled to the target depth of 3500 meters. The well encountered clastic reservoir with gross hydrocarbon column of around 32 meters in Miocene section and 4 meters in Pliocene section.
Within a short span of six years as an E&P operator, company has discovered hydrocarbons in the four major offshore basins of India namely Krishna Godavari, Mahanadi, Saurashtra and Cauvery basin, with major commercial finds in deep waters. These discoveries have established RIL as a pioneer in the challenging deepwater exploration in India.
*Credits: Sandeep Ravidutt Sharma, Foundation of Infrastructure Research Studies and Training (FIRST)
Mail your response to sandeep.ravidutt@gmail.com
GMR Group - Fast forward
Industry Project
GMR Group
Fast forward
India has become world's 12th largest economy in 2006, with GDP of some US$900 bn (at October 2007 exchange rates), or is the third largest economy after US and China in purchasing power parity terms (as per Lehman Brothers Report India: Everything to play for). As per Government of India recent estimates, more than $500 bn of investment is required in the infrastructure development comprising of roads, railways, power, airport etc during the 11th five year plan period (2007-2012). Demand for infrastructure development is on the rise and is throwing up opportunities worth billions to both domestic and international players. Providing enabling environment to boost sectoral growth is high on the agenda of the State and Central Government. Public private partnership has become the most preferred option in executing such developmental projects. Private sector companies in India are quick and active in grabbing such opportunities to build a modern and resurgent India.
GMR Infrastructure Ltd is one such jewel in the Indian infrastructure crown. It's an infrastructure company in the true sense, as it is involved in varied sectors such as Roads, Power, Airport, Realty etc. GMR Group founded by G.M.Rao in 1978 carries all its businesses through its subsidiary companies. Many of the prestigious projects undertaken includes development and modernisation of Delhi Airport, Hyderabad Airport, Orissa and Chhattisgarh power project, Ambala - Chandigarh road project.
Areas of operation:
Power
Road
Airport
Air Cargo Services
Aviation Security Consultancy
Mining
Real Estate Development
Projects planned / under implementation are listed below:
Airport Projects
A) Hyderabad International Airport Project (Rajiv Gandhi InternationalAirport, Shamshabad).
Company: GMR Hyderabad International Airport Ltd (GHIAL)
Location: Shamshabad
Project Cost: Rs 2478 crore (Phase-I)
Principal EPC Contractors:
1) Larsen & Toubro - Airside & Landside Works . 2) China State Construction & Engineering (HK) - Passenger Terminal Building Works and ATC Tower.
Recent Milestone: Taxiway marking Completed
GHIAL was formed in June 2002 to design, finance, build, operate and maintain the greenfield airport at Shamshabad. GHIAL is a public-private partnership venture between GMR Infrastructure, Malaysian Airports Holding, Berhad, Airports Authority of India and the Andhra Pradesh State government.
Project work is going on at a frantic pace and Phase-I will be completed by March '08. In this phase Modular terminal bldg is being constructed with a capacity of 12 million passengers and also 30 stands for Aircraft parking. Other buildings including CFR Station, ATC tower, MRO, and Cargo will be constructed. Phase-I is expected to be operational by March '08. Phase II will extend the terminal capacity up to 40 million passengers and it will have 54 stands for aircraft parking. A new runway is also being constructed. Phase III will have works done on its 3rd and 4th runway.
Extra facilities planned
It was decided to create extra facilities at Hyderabad Airport, which include more aircraft parking stands, rapid exit taxiways, full length parallel taxiway, and additional office space for airlines, extra cargo terminal space, additional car parking, extra immigration desks, self-check-in-kiosks and bus gate lounges. Works had started and is to complete by Mar '08.
F&B Outlet at RGI Airport, ShamshabadGHIAL awarded the contract of setting up, operating and maintaining F & B Outlet to HMS Host, a world leader in travel dining and shopping. As per the contract, HMSHost will be responsible for setting up, operating and maintaining the major part of the F&B outlets at the new international airport. The locations would be on the airside at Departure level (both International and Domestic) and at the bus gates.
Ground handling contracts awarded
GHIAL has awarded ground handling contracts of third party airlines to two consortia - Menzies-Bobba and SATSIndian Airlines-Air India. The scope included ramp handling of aircraft and its loads, passenger handling, check-in of passengers and their baggage at city terminal and their transport to airport including bringing back arriving passengers up to city point.
Medical Centre inside the Passenger Terminal Building
GHIAL has selected Apollo Hospitals for setting up a medical centre ins-ide the Passenger Terminal Building (PTB) at the new Hyderabad international airport at Shamshabad, Hyderabad.
Related projects:
1) Modern Aviation Academy at RGI Airport, Shamshabad.Agreement signed with the Belgium based Sabena Flight Academy to set up a modern aviation academy at the Rajiv Gandhi International Airport coming up at Shamshabad. This will be done by 2009. Project Cost: 45 crore.
2) Airport based SEZ
GMR Group has plans to set up an airport-based SEZ near the new Hyderabad Airport. SEZ will house aircraft component manufacturing industries and also see high-end aircraft engineering support activities.
3) MRO facility
GHIAL and Lufthansa Technic AG plans to jointly setup maintenance repair and overhaul (MRO) facility at RGI Airport, Shamshabad. Proposal cleared by State Investment Promotion Board (SIPB).Project Cost: Rs 100 crore
B) Modernisation and development of Delhi International Airport (Indira Gandhi International Airport)
Delhi International Airport (P) Ltd (DIAL) is a joint venture company formed for modernising and restructuring Delhi Airport.; comprising of Bangalore based GMR Group (50.1 per cent), Airports Authority of India (26 per cent), Fraport & Malaysian Airport 10 per cent each) and India Development Fund (3.9 per cent). DIAL has got the mandate to finance, design, build, operate and maintain the Delhi Airport for 30 years with an option to extend it by another 30 years.
According to DIAL 's chief financial officer Shirish Navlekar, the total capital expenditure programme of the Phase-I till year 2010 is estimated at about Rs. 8,900 crore. Financial closure achieved in December 2007. Praful Patel, Minister of Civil Aviation, Government of India recently inaugurated the concrete pouring process for the first slab of the Integrated Passenger Terminal Building. The building will serve both domestic and international passengers through 168 common use check-in counters. Work is progressing fast on the airport's third runway. Around 31 per cent of the work on the runway and associated taxiways remains to be completed by mid 2008. The runway will feature CAT III-B Instrument Landing System at both ends. This equipment will allow landings in visibility as low as 50 metres. DIAL is renovating Terminal 2. L&T has commenced the work and the project has to be completed by March 2008.
Related projects:
Hospitality District Project
DIAL has planned a hospitality district in the airport vicinity. This district will have 3000 hotel rooms and will complete by 2010. DIAL is considering applications of 15 leading Indian and foreign hotel and real estate chains to develop 45 acres of commercial land near the international terminal. Revenue model is being worked out.
Road Projects
Road projects include Ambala- Chandigarh (35 km), Farukhnagar- Jadcherla (58 km), Adloor Yellareddy- Pochanpalli (102 km) and the Tindivanam-Ulundurpet (73 km). Civil works have started and expected to complete by 2010.
Power Projects
1000 Mw Coal based, TPP
Bagged contract from the Government of Chhattisgarh for implementation, operation and maintenance of a 1000 Mw Coal based, Thermal Power Plant in Chhattisgarh. MOU signed. The Detailed Project Feasibility studies will be conducted soon.
1000 Mw coal based power plant at Dhenkanal
GMR Energy Ltd has signed an MoU with Government of Orissa to develop and operate 1000 Mw coal based power plant in Kamalanga, Dhenkanal district in Orissa. Power purchase agreements signed with GRIDCO and PTC India Ltd. Coal field linkages sought. Works to start shortly and project commissioning is expected by Dec '2011.
180 Mw Holi Bajoli HEP
Bagged bid for implementing the 180- mega watt (MW) Holi Bajoli Hydro Electric Project, across the river Ravi in Chamba District of Himachal Pradesh. Once financial closure is completed the project is expected to go into commercial operations in 2014. Project cost: Rs 1050.00 crore.
160 Mw Talong hydro power project
GMR Energy Ltd has signed MOU with the Govt of Arunachal Pradesh for implementation, operation and maintenance of the 160 Mw Talong hydro power project on BOOT basis in Seppa District, on River Kameng.Project developmental activities are being undertaken and Hydro Power Engineering Consultants are appointed as owner's engineers. Statutory approvals and necessary clearances are awaited. Plant is scheduled to be commissioned by 2011 end. Project funding through debt and equity. Project cost: Rs 900.00 crore.
SEZ Multi-product SEZ in Krishnagiri
GMR is to set up a 3,300-acre multiproduct SEZ in Krishnagiri district of Tamil Nadu. GMR Infrastructure signed an agreement with with the Tamil Nadu Industrial Development Corporation (Tidco) to implement the project. Project cost: Rs 2300 crore.
*Credits: Sandeep Ravidutt Sharma, Foundation of Infrastructure Research Studies and Training (FIRST).
Email: sandeep.ravidutt@gmail.com
GMR Group
Fast forward
India has become world's 12th largest economy in 2006, with GDP of some US$900 bn (at October 2007 exchange rates), or is the third largest economy after US and China in purchasing power parity terms (as per Lehman Brothers Report India: Everything to play for). As per Government of India recent estimates, more than $500 bn of investment is required in the infrastructure development comprising of roads, railways, power, airport etc during the 11th five year plan period (2007-2012). Demand for infrastructure development is on the rise and is throwing up opportunities worth billions to both domestic and international players. Providing enabling environment to boost sectoral growth is high on the agenda of the State and Central Government. Public private partnership has become the most preferred option in executing such developmental projects. Private sector companies in India are quick and active in grabbing such opportunities to build a modern and resurgent India.
GMR Infrastructure Ltd is one such jewel in the Indian infrastructure crown. It's an infrastructure company in the true sense, as it is involved in varied sectors such as Roads, Power, Airport, Realty etc. GMR Group founded by G.M.Rao in 1978 carries all its businesses through its subsidiary companies. Many of the prestigious projects undertaken includes development and modernisation of Delhi Airport, Hyderabad Airport, Orissa and Chhattisgarh power project, Ambala - Chandigarh road project.
Areas of operation:
Power
Road
Airport
Air Cargo Services
Aviation Security Consultancy
Mining
Real Estate Development
Projects planned / under implementation are listed below:
Airport Projects
A) Hyderabad International Airport Project (Rajiv Gandhi InternationalAirport, Shamshabad).
Company: GMR Hyderabad International Airport Ltd (GHIAL)
Location: Shamshabad
Project Cost: Rs 2478 crore (Phase-I)
Principal EPC Contractors:
1) Larsen & Toubro - Airside & Landside Works . 2) China State Construction & Engineering (HK) - Passenger Terminal Building Works and ATC Tower.
Recent Milestone: Taxiway marking Completed
GHIAL was formed in June 2002 to design, finance, build, operate and maintain the greenfield airport at Shamshabad. GHIAL is a public-private partnership venture between GMR Infrastructure, Malaysian Airports Holding, Berhad, Airports Authority of India and the Andhra Pradesh State government.
Project work is going on at a frantic pace and Phase-I will be completed by March '08. In this phase Modular terminal bldg is being constructed with a capacity of 12 million passengers and also 30 stands for Aircraft parking. Other buildings including CFR Station, ATC tower, MRO, and Cargo will be constructed. Phase-I is expected to be operational by March '08. Phase II will extend the terminal capacity up to 40 million passengers and it will have 54 stands for aircraft parking. A new runway is also being constructed. Phase III will have works done on its 3rd and 4th runway.
Extra facilities planned
It was decided to create extra facilities at Hyderabad Airport, which include more aircraft parking stands, rapid exit taxiways, full length parallel taxiway, and additional office space for airlines, extra cargo terminal space, additional car parking, extra immigration desks, self-check-in-kiosks and bus gate lounges. Works had started and is to complete by Mar '08.
F&B Outlet at RGI Airport, ShamshabadGHIAL awarded the contract of setting up, operating and maintaining F & B Outlet to HMS Host, a world leader in travel dining and shopping. As per the contract, HMSHost will be responsible for setting up, operating and maintaining the major part of the F&B outlets at the new international airport. The locations would be on the airside at Departure level (both International and Domestic) and at the bus gates.
Ground handling contracts awarded
GHIAL has awarded ground handling contracts of third party airlines to two consortia - Menzies-Bobba and SATSIndian Airlines-Air India. The scope included ramp handling of aircraft and its loads, passenger handling, check-in of passengers and their baggage at city terminal and their transport to airport including bringing back arriving passengers up to city point.
Medical Centre inside the Passenger Terminal Building
GHIAL has selected Apollo Hospitals for setting up a medical centre ins-ide the Passenger Terminal Building (PTB) at the new Hyderabad international airport at Shamshabad, Hyderabad.
Related projects:
1) Modern Aviation Academy at RGI Airport, Shamshabad.Agreement signed with the Belgium based Sabena Flight Academy to set up a modern aviation academy at the Rajiv Gandhi International Airport coming up at Shamshabad. This will be done by 2009. Project Cost: 45 crore.
2) Airport based SEZ
GMR Group has plans to set up an airport-based SEZ near the new Hyderabad Airport. SEZ will house aircraft component manufacturing industries and also see high-end aircraft engineering support activities.
3) MRO facility
GHIAL and Lufthansa Technic AG plans to jointly setup maintenance repair and overhaul (MRO) facility at RGI Airport, Shamshabad. Proposal cleared by State Investment Promotion Board (SIPB).Project Cost: Rs 100 crore
B) Modernisation and development of Delhi International Airport (Indira Gandhi International Airport)
Delhi International Airport (P) Ltd (DIAL) is a joint venture company formed for modernising and restructuring Delhi Airport.; comprising of Bangalore based GMR Group (50.1 per cent), Airports Authority of India (26 per cent), Fraport & Malaysian Airport 10 per cent each) and India Development Fund (3.9 per cent). DIAL has got the mandate to finance, design, build, operate and maintain the Delhi Airport for 30 years with an option to extend it by another 30 years.
According to DIAL 's chief financial officer Shirish Navlekar, the total capital expenditure programme of the Phase-I till year 2010 is estimated at about Rs. 8,900 crore. Financial closure achieved in December 2007. Praful Patel, Minister of Civil Aviation, Government of India recently inaugurated the concrete pouring process for the first slab of the Integrated Passenger Terminal Building. The building will serve both domestic and international passengers through 168 common use check-in counters. Work is progressing fast on the airport's third runway. Around 31 per cent of the work on the runway and associated taxiways remains to be completed by mid 2008. The runway will feature CAT III-B Instrument Landing System at both ends. This equipment will allow landings in visibility as low as 50 metres. DIAL is renovating Terminal 2. L&T has commenced the work and the project has to be completed by March 2008.
Related projects:
Hospitality District Project
DIAL has planned a hospitality district in the airport vicinity. This district will have 3000 hotel rooms and will complete by 2010. DIAL is considering applications of 15 leading Indian and foreign hotel and real estate chains to develop 45 acres of commercial land near the international terminal. Revenue model is being worked out.
Road Projects
Road projects include Ambala- Chandigarh (35 km), Farukhnagar- Jadcherla (58 km), Adloor Yellareddy- Pochanpalli (102 km) and the Tindivanam-Ulundurpet (73 km). Civil works have started and expected to complete by 2010.
Power Projects
1000 Mw Coal based, TPP
Bagged contract from the Government of Chhattisgarh for implementation, operation and maintenance of a 1000 Mw Coal based, Thermal Power Plant in Chhattisgarh. MOU signed. The Detailed Project Feasibility studies will be conducted soon.
1000 Mw coal based power plant at Dhenkanal
GMR Energy Ltd has signed an MoU with Government of Orissa to develop and operate 1000 Mw coal based power plant in Kamalanga, Dhenkanal district in Orissa. Power purchase agreements signed with GRIDCO and PTC India Ltd. Coal field linkages sought. Works to start shortly and project commissioning is expected by Dec '2011.
180 Mw Holi Bajoli HEP
Bagged bid for implementing the 180- mega watt (MW) Holi Bajoli Hydro Electric Project, across the river Ravi in Chamba District of Himachal Pradesh. Once financial closure is completed the project is expected to go into commercial operations in 2014. Project cost: Rs 1050.00 crore.
160 Mw Talong hydro power project
GMR Energy Ltd has signed MOU with the Govt of Arunachal Pradesh for implementation, operation and maintenance of the 160 Mw Talong hydro power project on BOOT basis in Seppa District, on River Kameng.Project developmental activities are being undertaken and Hydro Power Engineering Consultants are appointed as owner's engineers. Statutory approvals and necessary clearances are awaited. Plant is scheduled to be commissioned by 2011 end. Project funding through debt and equity. Project cost: Rs 900.00 crore.
SEZ Multi-product SEZ in Krishnagiri
GMR is to set up a 3,300-acre multiproduct SEZ in Krishnagiri district of Tamil Nadu. GMR Infrastructure signed an agreement with with the Tamil Nadu Industrial Development Corporation (Tidco) to implement the project. Project cost: Rs 2300 crore.
*Credits: Sandeep Ravidutt Sharma, Foundation of Infrastructure Research Studies and Training (FIRST).
Email: sandeep.ravidutt@gmail.com
Gujarat International Finance Tec-City (GIFT)
Industry Project
Gujarat International Finance Tec-City (GIFT)
Fast Foot Forward
Gujarat takes the lead over Maharashtra in building a financial hub.
Gujarat is one of the fastest growing states of India with an annual Gross State Domestic Product (GSDP) of over 14 per cent per annum over the past 10 years. People of Gujarat are quite popular for their entrepreneurial skills and investment acumen, which is far superior, compared to other people from other Indian States. A recently conducted talent study for the State also established that the manpower pool available in Gujarat, including non-resident Gujarati's, is amongst the largest pools available in the country.
Gujarat is competing with Maharashtra in many ways, be it attracting foreign direct investments (FDI), setting up manufacturing units, infrastructure spending, education, power projects and the latest entrant in this competition is the financial services industry. As Maharashtra aims to make Mumbai - an International Financial Centre, so do Gujarat wants to realize its potential in this sector.
Government of Gujarat has formulated a mega project to setup a Central Finance and Business District (CFBD), named as the Gujarat International Finance Tec-City (GIFT).
Approximately 27,000 acres (approx 104 sq.kms) of land between the commercial capital of the State, Ahmedabad, and the Administrative Capital of the State, Gandhinagar, have been earmarked for the development of a Central Finance and Business District (CFBD), Institutional areas, Knowledge parks, Integrated Townships, etc.
On the occasion of laying the foundation stone of GIFT in July 2007, Narendra Modi, Chief Minister of Gujarat had said, "The finance Tec-city will be the icon of modern Indian economy. For centuries the Gujarati community has earned a name in trade and commerce and has also shown the richness of civilized society by creating well planned towns and civic facilities as seen in Lothaj and Dhoiavira. Gujarat has now become the propelling force of economy with the highest growth rate in the 21st century and striding for the development of 33 SEZ's with port related facilities including agriculture and industrial development. The state has become the most attractive destination for investment in the global economy".
ComponentGIFT will use 500 acres of land, out of this Multi Services SEZ and Domestic Tariff Area (DTA) will share it equally. Multi Services SEZ will comprise of Processing and Non-Processing Areas. Processing Areas in turn would include International Financial Service Center (IFSC), International Techno Park, STPI Units - Technology, International Market Zone, Exchanges, Service Units and Inter. Education Zone. Non-Processing Areas on the other hand would include Utilities, Integrated Townships, Entertainment Zone, Hotel/Convention Centre, Shopping Malls, Health Services and Schooling. Domestic Tariff Area (DTA) will comprise of Domestic Financial District, Techno Park, Fin/Tech Services EoU Park, Markets Zone, Education Zone and Utilities.
Fast Forward Approach
Government of Gujarat is adopting a fast forward approach with regard to setting up GIFT. It has already formed a Joint Venture Company, "Gujarat International Finance Tec-City Company Limited (GIFTCL)", through its agency Gujarat Urban Development Corporation Limited (GUDCL) and Infrastructure Leasing & Financial Services (IL&FS).
Project Location
GIFT is strategically located at Shahpur village and would ensure convenience for its inhabitants and visitors. The site is 12 kms from the Ahmedabad International Airport and 8 kms from Gandhinagar. The site abuts a four lane National Highway (NH8) which connects Ahmedabad and Gandhinagar on its western side. The Sabarmati river demarcates the eastern boundary of the Project site.
Project Concept and Design
GIFTCL proposes to implement GIFT as a globally benchmarked International Finance City as well as to develop, finance, implement all infrastructure in and around GIFT on a turnkey basis to ensure that all conceivable services in relation to connectivity, communication, technology, security, services for quality of life, etc, are established and sustained. Domestic and international experts have contributed to the project design keeping in mind the key requirements of the financial service sector.
Gujarat International Finance Tec- City (GIFT) will have access to superior infrastructure, state-of-the-art connectivity and modern modes of transportation and will provide an enabling framework for financial service industry to thrive. Mass Rapid Transit system linking the Project to the cities of Ahmedabad and Gandhinagar are also planned. The hitech, self-sustaining financial city will have a fully-integrated data centre, data landing gateway and environment friendly energy conservation measures including use of solar and wind energy, cooling systems and mass transport services. A 12 km dedicated Expressway to the International Airport is being built as part of the Project.
The project is divided into an international financial city where offshore banking units and global financial firms are expected to set shop; a domestic financial city to attract local investment companies and capital/commodity market players; an e-technology park with an integrated data centre and a township for support activities. InvestmentIts investment outlay has been pegged at approximately Rs 24,500 crore ($6 billion).
Consultants:
Panel of consultants engaged for GIFT include ECADI/Fairwood, McKinsey & Company, Hewitt, IL&FS Ecosmart among others.
Employment Potential
GIFT will serve as a Global BPO and IT hub for financial services, R&D hub and financial center for select product markets. Project is estimated to generate over 4 million jobs by 2020.
Initial Anchor Occupants of GIFT
Memorandum of Understanding (MOU) have been signed with the following companies who have expressed willingness to take up at least one million square feet of office space in GIFT. IL&FS Limited / ORIX Corporation (Japan) Chescor Capital Corporation Limited Kotak Mahindra Bank Limited (India) Sembawang Engineers and Constructors Pte. Ltd. (Singapore) Fairwood Associates (India) ICAI (Institute of Chartered Accountants of India) (India)
Project Current Status
1. Land acquired and transferred to JVC
2. Detailed master plan completed3. Built from engineering underway
4. Approval of Government of Gujarat received
5. Approval of Government of India received for SEZ6. Infrastructure planning completed
7. DPR's under preparation
8. Site preparation activities have commenced
Project Potential
GIFT aspires to capture a modest 6 to 8% share of business opportunities to be created based on the following strengths:
1. Strong Location Advantage
2. Its Proximity to Mumbai and strong connectivity by air and road
3. Robust Urban Planning4. Well Designed Urban Form in Place
5. High Quality Infrastructure
6. State of the art physical, ICT and social Infrastructure at affordable prices
7. Availability of Talent Pool
8. Plan Under Implementation for smooth operation of business
9. Business friendly Regulations and Policies
10. Special Economic Zone Approved11. Firm Implementation Plan
In terms of scale and sheer physical scope, GIFT is being designed to be at or above par with presently acknowledged globally benchmarked financial centers such as Shinjuku (Tokyo), Lujiazui (Shanghai), LaDefense Paris), Dockyards London).
*Credits: Sandeep Ravidutt Sharma, Foundation of Infrastructure Research Studies and Training (FIRST)
Gujarat International Finance Tec-City (GIFT)
Fast Foot Forward
Gujarat takes the lead over Maharashtra in building a financial hub.
Gujarat is one of the fastest growing states of India with an annual Gross State Domestic Product (GSDP) of over 14 per cent per annum over the past 10 years. People of Gujarat are quite popular for their entrepreneurial skills and investment acumen, which is far superior, compared to other people from other Indian States. A recently conducted talent study for the State also established that the manpower pool available in Gujarat, including non-resident Gujarati's, is amongst the largest pools available in the country.
Gujarat is competing with Maharashtra in many ways, be it attracting foreign direct investments (FDI), setting up manufacturing units, infrastructure spending, education, power projects and the latest entrant in this competition is the financial services industry. As Maharashtra aims to make Mumbai - an International Financial Centre, so do Gujarat wants to realize its potential in this sector.
Government of Gujarat has formulated a mega project to setup a Central Finance and Business District (CFBD), named as the Gujarat International Finance Tec-City (GIFT).
Approximately 27,000 acres (approx 104 sq.kms) of land between the commercial capital of the State, Ahmedabad, and the Administrative Capital of the State, Gandhinagar, have been earmarked for the development of a Central Finance and Business District (CFBD), Institutional areas, Knowledge parks, Integrated Townships, etc.
On the occasion of laying the foundation stone of GIFT in July 2007, Narendra Modi, Chief Minister of Gujarat had said, "The finance Tec-city will be the icon of modern Indian economy. For centuries the Gujarati community has earned a name in trade and commerce and has also shown the richness of civilized society by creating well planned towns and civic facilities as seen in Lothaj and Dhoiavira. Gujarat has now become the propelling force of economy with the highest growth rate in the 21st century and striding for the development of 33 SEZ's with port related facilities including agriculture and industrial development. The state has become the most attractive destination for investment in the global economy".
ComponentGIFT will use 500 acres of land, out of this Multi Services SEZ and Domestic Tariff Area (DTA) will share it equally. Multi Services SEZ will comprise of Processing and Non-Processing Areas. Processing Areas in turn would include International Financial Service Center (IFSC), International Techno Park, STPI Units - Technology, International Market Zone, Exchanges, Service Units and Inter. Education Zone. Non-Processing Areas on the other hand would include Utilities, Integrated Townships, Entertainment Zone, Hotel/Convention Centre, Shopping Malls, Health Services and Schooling. Domestic Tariff Area (DTA) will comprise of Domestic Financial District, Techno Park, Fin/Tech Services EoU Park, Markets Zone, Education Zone and Utilities.
Fast Forward Approach
Government of Gujarat is adopting a fast forward approach with regard to setting up GIFT. It has already formed a Joint Venture Company, "Gujarat International Finance Tec-City Company Limited (GIFTCL)", through its agency Gujarat Urban Development Corporation Limited (GUDCL) and Infrastructure Leasing & Financial Services (IL&FS).
Project Location
GIFT is strategically located at Shahpur village and would ensure convenience for its inhabitants and visitors. The site is 12 kms from the Ahmedabad International Airport and 8 kms from Gandhinagar. The site abuts a four lane National Highway (NH8) which connects Ahmedabad and Gandhinagar on its western side. The Sabarmati river demarcates the eastern boundary of the Project site.
Project Concept and Design
GIFTCL proposes to implement GIFT as a globally benchmarked International Finance City as well as to develop, finance, implement all infrastructure in and around GIFT on a turnkey basis to ensure that all conceivable services in relation to connectivity, communication, technology, security, services for quality of life, etc, are established and sustained. Domestic and international experts have contributed to the project design keeping in mind the key requirements of the financial service sector.
Gujarat International Finance Tec- City (GIFT) will have access to superior infrastructure, state-of-the-art connectivity and modern modes of transportation and will provide an enabling framework for financial service industry to thrive. Mass Rapid Transit system linking the Project to the cities of Ahmedabad and Gandhinagar are also planned. The hitech, self-sustaining financial city will have a fully-integrated data centre, data landing gateway and environment friendly energy conservation measures including use of solar and wind energy, cooling systems and mass transport services. A 12 km dedicated Expressway to the International Airport is being built as part of the Project.
The project is divided into an international financial city where offshore banking units and global financial firms are expected to set shop; a domestic financial city to attract local investment companies and capital/commodity market players; an e-technology park with an integrated data centre and a township for support activities. InvestmentIts investment outlay has been pegged at approximately Rs 24,500 crore ($6 billion).
Consultants:
Panel of consultants engaged for GIFT include ECADI/Fairwood, McKinsey & Company, Hewitt, IL&FS Ecosmart among others.
Employment Potential
GIFT will serve as a Global BPO and IT hub for financial services, R&D hub and financial center for select product markets. Project is estimated to generate over 4 million jobs by 2020.
Initial Anchor Occupants of GIFT
Memorandum of Understanding (MOU) have been signed with the following companies who have expressed willingness to take up at least one million square feet of office space in GIFT. IL&FS Limited / ORIX Corporation (Japan) Chescor Capital Corporation Limited Kotak Mahindra Bank Limited (India) Sembawang Engineers and Constructors Pte. Ltd. (Singapore) Fairwood Associates (India) ICAI (Institute of Chartered Accountants of India) (India)
Project Current Status
1. Land acquired and transferred to JVC
2. Detailed master plan completed3. Built from engineering underway
4. Approval of Government of Gujarat received
5. Approval of Government of India received for SEZ6. Infrastructure planning completed
7. DPR's under preparation
8. Site preparation activities have commenced
Project Potential
GIFT aspires to capture a modest 6 to 8% share of business opportunities to be created based on the following strengths:
1. Strong Location Advantage
2. Its Proximity to Mumbai and strong connectivity by air and road
3. Robust Urban Planning4. Well Designed Urban Form in Place
5. High Quality Infrastructure
6. State of the art physical, ICT and social Infrastructure at affordable prices
7. Availability of Talent Pool
8. Plan Under Implementation for smooth operation of business
9. Business friendly Regulations and Policies
10. Special Economic Zone Approved11. Firm Implementation Plan
In terms of scale and sheer physical scope, GIFT is being designed to be at or above par with presently acknowledged globally benchmarked financial centers such as Shinjuku (Tokyo), Lujiazui (Shanghai), LaDefense Paris), Dockyards London).
*Credits: Sandeep Ravidutt Sharma, Foundation of Infrastructure Research Studies and Training (FIRST)
Thursday, November 22, 2007
The Mumbai based construction firm has aggressive growth plans
The Mumbai based construction firm has aggressive growth plans
At a time when the realty sector of the country is bustling with activity, Oberoi Constructions - Mumbai based developer of niche real estate projects, has announced the completion of over 3.5 million sq ft of premium real estate across 25 high value projects in Mumbai. The company has an additional eight residential commercial and retail projects under various stages of completion with a total development potential of 21 mn sq ft. With a land bank of over 130 acres of prime property and riding on the high demand for luxury residential and commercial propositions, Oberoi Constructions has chalked out aggressive growth plans, which include projects in retail, education and hospitality.
For more such project news, visit
http://www.constructionupdate.com/products/projectsinfo/2007/29-Oct-04-Nov2007/003.html
At a time when the realty sector of the country is bustling with activity, Oberoi Constructions - Mumbai based developer of niche real estate projects, has announced the completion of over 3.5 million sq ft of premium real estate across 25 high value projects in Mumbai. The company has an additional eight residential commercial and retail projects under various stages of completion with a total development potential of 21 mn sq ft. With a land bank of over 130 acres of prime property and riding on the high demand for luxury residential and commercial propositions, Oberoi Constructions has chalked out aggressive growth plans, which include projects in retail, education and hospitality.
For more such project news, visit
http://www.constructionupdate.com/products/projectsinfo/2007/29-Oct-04-Nov2007/003.html
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