Successful Infra Projects in India

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					Special Economic Zones In India
    – Opportunities Unlimited

                          Presentation by:
                         Bhavesh Gandhi
                          Vice Chairman
         Sea King Infrastructure Limited
Flow of Presentation
   India – the complete picture

   FDI inflow into India

   Infrastructure initiatives

   The SEZ concept

   Indian SEZs

   Inviting participation of Korean companies in
    Indian Infrastructure & SEZs
India                                          …an overview
   World‟s largest democracy & among the strongest emerging markets

   A liberalizing economy and rated as 4th largest country based on

    Purchasing Power Parity [PPP]

   1.2 billion people with 300 million in the middle class bracket

   Well matured financial and securities market

   Time-tested judicial systems

   WTO member committed to providing opportunity to the global market

   Constantly undertaking reforms in every sector with Infrastructure

    Sector receiving Government‟s fullest attention
India                     … a fast developing nation
   India has 5 major metropolitan urban centers growing @ 2.1 % p.a

   India‟s urban population is 218 million as of 2002, and expected to

    be 500 million by 2012

   Large pool of educated manpower available at affordable cost

   Significant Impact on lifestyle and standard of living

   Cities with world class integrated infrastructure recognized as

    necessary drivers of economic growth
India - Poised for a Quantum Leap
   India has potential to attract US $ 100 billion over next five
   Export Oriented Sectors alone to attract US$ 11 billion
   Increase in FDI will lead to increase in GDP by another 2-3 %
   Potential for creation of 1 Million direct and indirect jobs each
                                      Source: AMCHAM with McKinsey&Co.

   Between 2002 to 2003 India has improved its FDI confidence

    ranking from Rank No. 15 to Rank No. 6

                              Source: AT. Kearney, FDI Confidence Index 2003
India – Main Drivers for FDI are …

            Market size/market potential                      33%

            Labour force skills                 26%

            Wages                 18%

                                   Opportunities in Infrastructure

   Government incentives 13%

                                                  Source: AT Kearney
India – the infrastructure initiatives
•   Recent initiatives have seen India create a liberalised and free policy
    regime in all infrastructure sectors i.e
     • Roads – Highways & Road development projects worth US$ 12
        billion being implemented through National Highway Authority of
        India (NHAI), have attracted extensive participation of world majors
     • Telecom – India is rated as amongst the fastest growing markets
     • Seaports – Leading port operators across the world participating in
        government port privatization and to develop greenfield ports.
     • Power – Huge investment plans in power generation, transmission and
        distribution through both government and private sectors are being
     • Railways – Moves to augment rail infrastructure through private sector
        being brought in place
Introduction of SEZs in India
   To achieve its three-fold objectives of attracting FDI, increasing

    exports and accelerating the country‟s economic growth the

    Government of India announced the introduction of Special

    Economic Zones (SEZs) in its Export-Import Policy of March 2000

   Special Economic Zones (SEZs) 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, Chapter 9 para 30
The SEZ experience
   Extremely successful Chinese format to promote exports, attract

    FDI and foster overall economic growth

   Shenzhen SEZ, started in 1981, has achieved 38% GDP growth

    CAGR – the highest economic growth recorded in human history

   India‟s SEZs identified as “Engines of Growth”

   The liberalised SEZ Policy opens up exciting prospects for

    businesses across the spectrum of manufacturing, service, trading

    and technology sectors.

    MahaMumbai SEZ, India’s first greenfield
    integrated SEZ       to be set up near
SEZs                                            …the concept
   Duty free areas with Integrated Infrastructure

   High Point - Preferential Policy framework with a package of


   Benefits of local advantages within an international business


   Business Infrastructure combined with social facilities

   Development, Administration and Operation to be undertaken by

    private sector to enable a hassle free operating environment

   Envisaged as areas of excellence to enable global companies to

    derive domestic advantages for doing business.
SEZ Framework

     Fiscal                                  Thrust on self-
  incentives &                               certification &
   regulatory                                   in-zone
    benefits                                 empowerment


                 Integrated Infrastructure
                    Self-contained &

 India unveils its boldest policy initiative in 55
SEZ – Operational Advantages
   Sectoral restrictions on manufacturing sector inapplicable within SEZ

   Single window clearance

   All SEZ activities on self certification basis

   Inter unit transfer of goods permitted

   No routine customs examination of export and import cargo

   Forward looking Labour Laws under consideration
SEZ – Fiscal Advantages
   100% FDI for manufacturing units operating inside SEZs through automatic
    approval route in almost all sectors
   100% exemption of income tax for the first 5 years and a 50% exemption for the
    subsequent 2 years from the date of commencement of operations.
   100% profit repatriation facility from export earnings
   Permission to sell within the Domestic Tariff Area (DTA) and an exemption from a
    Special Additional Duty (SAD) subject to the company having a positive Net
    Foreign Exchange Position (NFEP)
   Supplies from DTA to be treated as exports while those from SEZs to DTA to be
    treated as imports.
   Investments in SEZ treated as infrastructure development and eligible for exemption
   Local inputs at reduced cost without the excise, VAT other levies of India
   Duty free import of materials for construction, capital goods and goods required for
SEZ facilities & potential opportunities
   To enable creation of a world-class environment, SEZs will prospectively
    include the following facilities:
        Business – Industrial Land on lease, ready built sheds, commercial
         offices and buildings
        Living – Residential and social areas
        Learning – Schools, Colleges, Institutions and Centres of Excellence
        Healthcare – Specialized and primary healthcare facilities
        Recreation – Theme Parks, Restaurants, Hotels, Golf Courses
        Utilities – Efficient and reliable power, water, waste management &
         technology facilities
        Logistics – A comprehensive logistics systems encompassing Road,
         Rail, Air and Sea linkages.
        Adequate focus on security and disaster management systems
SEZs approved in India

State            Location

Maharashtra      MahaMumbai, Dronagiri

Tamil Nadu       Nanguneri
Gujarat          Positra

Andhra Pradesh   Kakinada

Madhya Pradesh   Indore

Orissa           Paradeep, Gopalpur

Uttar Pradesh    Bhadohi, Kanpur and Greater Noida

West Bengal      Kulpi

Karnataka        Hassan
SEZs – favored business destination
• Special Economic Zones to create a world-class environment within India
    for businesses
• Special SEZ Policy already announced by the Ministry of Commerce,
    Government of India. An exclusive SEZ Law to be enacted soon.
• SEZs envisaged as business areas offering environment friendly, hassle
    free, competitive, self regulated with availability of affordable, skilled &
    educated manpower provided with superior living conditions”
   Large-scale Opportunities exist to participate in developing individual
    components within an SEZ on a stand-alone or integrated basis
• SEZs can be set up by government, private or joint sectors.
• MahaMumbai SEZ planned as India’s first greenfield integrated SEZ to be
    set up in the private sector near Mumbai
    We invite Korean
companies to participate in
World Class Infrastructure
Thank You
Contact Us
Corporate Office:

                    MahaMumbai Special Economic Zone

                    (Promoted by Sea King Infrastructure Limited)

                    „Pipavav House‟, 209, Bank Street Cross Lane,

                    Off Shahid Bhagat Singh Road,

                    Fort, Mumbai - 400 023. INDIA

                    Tel.: +91-22-2270 3031 (30 Lines)

                    Fax: +91-22-2269 6021


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