Mumbai Integrated
Special Economic Zone
Mr. Rajendra Singh
Chairman
Mumbai Integrated SEZ Limited
New Delhi
New Delhi
March 28-29 2005
March 28-29 2005
March 2005 1
India Today – Soaring High
Largest democracy & 6th fastest growing economy in the world
Handsome rewards of the reforms process
Sustained growth from 3.5% in the period 1950 to mid 80s to over 6.5% currently -
Record GDP growth of 8.5% in 2004
FOREX reserves of more than US$ 137 billion in March 2005
FII inflows of US$ 6.64 billion in 2004 estimated to reach US$ 8 billion in 2005 –
‘…over US$ 1 billion FI investments in 7 trading days of March 2005…’
FDI is estimated to touch US$ 8 billion in current fiscal as against US$ 4.68 billion
in 2003-04 – a growth of over 70%
Exports grew by 25.6% in dollar terms for the period April-January 2005, as
compared with 11.7% in the corresponding period last year
Ever-growing domestic market with an increasing
Source: consuming class
• Monthly Economic Report – February 2005, Department of Economic Affairs, Ministry of Finance, GoI
• National Accounts Division, Ministry of Statistics & Programme Implementation (Central Statistical Organisation), GoI
• Reserve Bank of India
March 2005 2
India – Investment Outlook Summary
Liberal and transparent investment policies, including FDI
Among the top 5 ‘Reformers’ in 2003 – World Bank
Among the top 3 investment ‘hot spots’ for the next 4 years - UNCTAD &
Corporate Location
Most preferred BPO destination & 3rd most attractive investment destination:
AT Kearney FDI Confidence Index 2004
3rd largest economy in the world by 2050 – Goldman Sachs
Overall growth forecasted at 7.4% in 2004 and 7.6% in 2005 with further
acceleration expected in future – Asian Development Bank
Soaring higher…
March 2005 3
Manufacturing & Services Hub
Increasing investments in various key sectors
Manufacturing
Overall industrial growth of 8.4% in Q2-Q4 2004 as against 6.2% in the
corresponding period the previous year
CII-McKinsey Study estimates manufacturing exports estimated to
reach US$ 300 billion by the year 2015
Services
Accounting for over 50% of India’s GDP growing consistently at 7% per
annum
Preferred supplier & a base for IT outsourcing for several global firms
Major contribution from IT sector
Infrastructure & Manufacturing fund of around US$ 10 billion setup by
GoI aimed at boosting development of infrastructure across various
sectors
Uniquely Positioned in the Asia-Pacific Region
March 2005 4
Special Economic Zones
Engines of Economic Growth in India
March 2005 5
India’s Future Growth Impetus - SEZs
Special Economic Zones have been identified as catalysts to foster
economic growth
New comprehensive policy framework with a package of incentives
Leverage local strengths within an international environment
Administration by Business for Business within a hassle free operating
environment
“Government is of the view that Special Economic Zones (SEZs) are
growth engines that can boost manufacturing, exports and
employment.”
Mr. P. Chidambaram
Hon’ble Minister of Finance, Government of India
Union Budget 2004 - 05 Speech
8th July 2004, New Delhi
Special Economic Zones – Engines of Economic Growth
March 2005 6
Overview of SEZ Concept
Modelled on extremely successful Chinese format to promote exports, attract
FDI and foster overall economic growth
Shenzhen SEZ, started in 1981, has achieved more than 50% GDP growth
CAGR (highest recorded in human history) mainly due to:
Liberal economic framework
Integrated infrastructure at very competitive prices
SEZs, the engines for export led economic growth in India, defined as:
“Specifically delineated duty-free enclave and shall be deemed to be
foreign territory for the purposes of trade operations and duties and
tariffs”
EXIM Policy 2000
Ministry of Commerce & Industry, GoI
Path-breaking Policy of the Government of India
March 2005 7
SEZ Wheels of Success
Operating Environment
Ease, self-certification,
Efficiency & productivity
Policy Framework Infrastructure
Fiscal Incentives & Self-contained,
regulatory benefits Integrated, connected &
Self-managed
March 2005 8
Advantages to Business
Regulatory Fiscal
100% FDI allowed through automatic approval SEZ Units provided 20-year income tax
No sectoral restrictions exemption on export profits from date of
Sales to hinterland of India (DTA) permitted commencement of operations
with incentives on achieving Positive Net 1st 5 years 100% exemption
Foreign Exchange (NFE) Next 5 years 50% exemption
Sub-contracting allowed to units in DTA Next 10 years 50% exemption upon
All SEZ activities on self certification basis reinvestment of profits
100% FDI permitted in real estate within SEZ Reduced input costs as imports – exempted
“Public Utility” status to in-zone units thus from customs duty on raw materials / capital
preventing flash-strikes by workers goods locals and from local taxes and levies
Thrust on one-stop clearance and single-point Units allowed to avail External Commercial
interface for all matters relating to SEZ with Borrowings (ECBs)
powers of various government departments Freedom to retain Foreign Exchange Earnings
delegated to DC Offshore Banking Units (OBUs) permitted to be
Access to cheaper global capital through set up in SEZs with 100% income tax
International Financial Services Centre / exemption for first 5 years, 80% thereafter for
Offshore Banking Units in SEZ all times
Hassle-free Operating Environment for Business Enhancing Profitability – Facilitating
March 2005
Growth 9
Incentives to Developers, Co-developers & Investors
Developer of SEZ may import / procure goods without payment of duty for the
development, operation and maintenance of SEZ.
Income tax exemption for a block of any 10 years in 15 years at the option of developer
Income Tax exemption also extended to Investor's in SEZs u/s 10 (23) G of IT Act
Exemption from Service Tax
100% FDI permitted to develop township within the SEZ with residential areas, markets,
play grounds, clubs, recreation centers etc.
Generation, Transmission and Distribution of Power in SEZs allowed.
Full freedom in allocation of developed plots to approved SEZ units on purely
commercial basis and complete authority to provide services like water, electricity,
security, restaurants, recreation centers etc. on commercial lines.
Develop Standard Design Factory (SDF) building in exiting Special Economic Zones.
Infrastructure facility permitted to be transferred for operations & management (O&M)
alongwith income-tax exemptions u/s 80-I-A of IT Act
Boosting Investments – Improving Quality
March 2005 10
Mumbai Integrated Special Economic Zone
India’s new economic hub in the making
Piloting India’s Next Generation Reforms
March 2005 11
An Overview
Located adjacent to Mumbai (earlier known as Bombay),
the financial & commercial capital of India
Total area of over 14,000 hectares of which Phase I
development covering 2,576 hectares Mumbai
Partners in progress
Zone Master Planning and O&M by Jurong Consultants, Singapore
Project Management by Parsons Brinkerhoff, USA
Project Execution by one of the top 10 world reputed EPC contractors
Marketing strategy and implementation in liaison with international consultants
MiSEZ Phase I estimates over 15 years
Investments of US$ 1.1 billion for creation of world class infrastructure
Business investments of over US$ 13 billion from potential users (as estimated by
KPMG)
Home to over 600,000 persons with employment creation for over 200,000 persons
Planned on a Global Scale with a Global Perspective
March 2005 12
Location
MTHL
Map Not To Scale
March 2005 13
Land Use Plan: Phase I
Area in
Infrastructure %
Hectares
Industrial 869 33.7
Residential 518 20.1
Commercial 52 2.0
Institutional 146 5.7
Sports & Recreational 126 4.9
Parks & Open Spaces 157 6.1
Green Buffer 211 8.2
Cargo Area 100 3.9
Roads 292 11.3
Utilities 105 4.1
Total 2,576 100
Source: Conceptual Master Plan Phase I
Comprehensive & Integrated Infrastructure under One Umbrella
March 2005 14
Targeted Users
Manufacturing Services
• Apparel, Garments & Leather • IT enabled services
• Auto Components • Biotechnology
• Light Engineering • R&D services
• Pharmaceuticals • Health care
• Food Processing • Financial Services
• Telecom Equipment • Education
• Application Engineering • Entertainment and recreation
• Microelectronics • Organized Retail
• Consumer Electronics & Appliances • Real Estate
• Gems, Jewellery & Diamonds
Source: KPMG
NMSEZ will provide a Platform to Compete Globally
March 2005 15
Integrated Infrastructure for Business…
Industrial
Developed plots for industrial establishments
Integrated Industry specific parks
Standard design & built-to-suit factories with pre-installed utilities
Commercial
Central Business District, Town Centres
International Financial Services Centre
Fully integrated with IT infrastructure
Residential
Planned on a self-contained neighbourhood concept with
educational institutions, shopping & recreational facilities
Coastal Residential, Central Area & Inland townships with green
open spaces and facilities
Providing for a New Way of Life
March 2005 16
…and Social Needs
Education
Provision of primary & secondary schools & colleges
Institutions for advanced learning and professional courses
Training & Development institutions
Healthcare
Primary health-care centers and polyclinics
Specialty & general hospitals
Leisure
Sports, clubs & other recreational facilities within zone
Regional & town parks and gardens religious centers etc.
Hotels, resorts, conventions & exhibition centres, etc.
Golf courses, theatres / multiplexes, etc.
Best of Business, Living, Learning, Recreation and Healthcare
March 2005 17
Utilities
Water
Available from nearest Dam, to be distributed at nominal charges.
Conservation through harvesting and recycling
Power
Captive power plant providing quality power supply - Generation,
Transmission and Distribution.
Solid Waste Management
Well-planned waste management facility.
Sewage Treatment
Treatment facilities for Industrial and Residential sectors.
All Utilities as a part of Basic Infrastructure
March 2005 18
Multi-modal Connectivity
Airport
Existing Mumbai airport at 55 kms from the zone
Proposed international airport in proximity to zone at a
distance of 15 kms
Rail Linkage
Freight & Commuter lines passing alongside the zone
providing linkages to hinterland
Port
Direct road and rail link to JNPt Port at a distance of 5 kms
Bonded 4-lane expressway proposed
Roads
Linked to National Highways & State Highways
Internal / arterial roads within zone
Multi-modal Connectivity as part of Integrated Concept
March 2005 19
Services
International Financial Services Center (IFSC)
MiSEZ to become next financial hub of the country with International
Financial Services Centre (IFSC)
Banks having presence in India allowed to set up Offshore Banking Units
within SEZs – only requirement is a base capital of US$ 10 million
Banks can raise capital from all over the world and can invest upto 25% in
India, balance 75% within the zone
IFSC to benefit from India’s competitive advantages of educated
manpower, time-tested judiciary, and fast maturing financial markets
Telecom
Broadband fibre optic network providing access to telephony and data
communication
In-zone
Administration, Maintenance, Security and other Emergency services
March 2005 20
Real Estate Development
Premium and exclusive enclave, offering world class living standards,
will attract high net worth individuals from all over the world
No slums / encroachment as all land is private & completely bonded
Pollution free environment
Management of residential areas by global leaders in the business
Zone population forecasted to rise to over 6 lakh people in 15 years
Total requirement for built-up Residential and Commercial space
estimated to around 500 million square feet over 15 years
Potential revenues upwards of US$ 50 billion over a period of 15 years
March 2005 21
Impetus through
Large employment opportunities with above average per capita income
International quality infrastructure combined with fiscal benefits & ever
increasing economic activities
All-round connectivity through roads, rail, port, airport and upcoming Mumbai
Trans Harbour Link
FDI in real estate will grow this market by providing access to long term capital
at low-cost
Low-cost and long-term funding for housing finance
Alliance with leading global industry players will ensure maintenance and
enhancement of real estate value/assets
Large NRI population will have a internationally comparable destination back
home at a competitive prices
March 2005 22
Mumbai Integrated Special Economic Zone
‘Engine of Economic Growth’
Ushering 2nd & 3rd generation of economic reforms including progress
towards Capital Account Convertibility
Initiating labour reforms on an experimental basis
Creation of ‘Multiplier Effect’
Can be utilized as a platform for introducing economic & labour reforms
Expanding the islands to cover larger zones within the country
Leading to the creation of a larger Regional Free Trade Area
Large-scale employment generation due to investments
An experimental ground for initiating & successfully implementing next generation
March 2005
reforms
23
Opportunities at MiSEZ
1. Setting up of units in several manufacturing and service sectors
2. Strategic / equity partnerships and / or joint ventures of various activities
in part / full of
Master Planning
Engineering & construction
Process Plant Engineering and Development of Captive Utilities
Environmental Services in the fields of Water Treatment, Solid Waste
Management and Air Pollution Control
Development and maintenance of an in-zone Telecom Network
Zone Management
3. Real Estate
Setting up of a Real Estate Investment Trust and
Provision of real estate solutions such as securitization, asset management
and valuation expertise
4. Construction and development of Asia’s largest sea link (Mumbai Trans
Harbour Link) across the Mumbai harbour on BoT basis
March 2005 24
Participation through…
…Investment in a holding company with participation from MiSEZ Ltd.
OR
Investment in SEZ project company
OR
Investment in Real Estate / Infrastructure Special Purpose Vehicle (SPV)
March 2005 25
Associates
Project Consultants Technical Consultants
Jurong Town Consultants, Singapore Tata Consulting Engineers
Parsons Brinckerhoff (PB) Dalal Consultants & Engineers
McClier, USA L&T – Sargent Lundy
Lang O’Rourke
Strategic / Marketing
Consultants Major Lenders
KPMG Industrial Development Bank of India
Tata Economic Consultancy Services Infrastructure Leasing & Financial
Delloite Haskins & Sells Services (IL&FS)
Ernst & Young HUDCO
Pricewaterhouse Coopers Infrastructure Development Financing
Jones Lang LaSalle Corporation
KSA Technopak Other Banks / FIs
CRISIL
Investment Bankers
Legal IL&FS
Amarchand Mangaldas SSKI Corporate Finance Pvt. Ltd.
Khattar Wong & Partners Others
March 2005 26
Contact Us
Corporate Office SKIL House
209 Bank Street Cross Lane,
Fort, Mumbai – 400 023, INDIA
+91 22 5669 6000
+91 22 2269 6021 – 24
Mr. Rajendra Singh ℡ +91 11 23332 7262 – 65
Chairman rsingh@skil-mmsez.com
Mr. Mahendra P. Vora ℡ +91 22 5669 6012 / 2269 6013
Director – Group Co. voramp@skil-mmsez.com
Mr. Sanjeev Hariharan ℡ +91 22 5669 6018
Sr. Mgr. – Business Development sanjeevh@skil-mmsez.com
March 2005 27
Your Global Business Platform
March 2005 28