ISPAT - SEZ

SEQUENCE OF PRESENTATION
 General.
 Vision & Overview.
 Organogram, Manpower induction & Recruitment status.
 SEZ Land.
 SEZ Utilities.
 Legal / Government issues / Permissions.
 Various Consultants, Funds / Budget, Visits / Meetings.
 Impending Activities, Immediate Decisions & Way Forward.
GENERAL
 FUNDAMENTALS OF SEZs

– SEZs (special economic zones) are fundamentally different

from the traditional free zones.

– They are much larger in size; offer broader range of activities

such as:
a single-window management.
streamlined procedures.
duty-free privileges.
also access to the domestic market on a duty-paid basis.

– The revised Kyoto Convention of the World Customs

Organisation defines free zone as “outside the customs
territory”.

Cont….
 FUNDAMENTALS OF SEZs
Whether the enclave is termed an EPZ, FTZ or SEZ,
the cardinal factor is the provision of :

– Appropriate infrastructure and transport

facilities.
– Low factor cost.
– Flexible labour laws.
– Low degree of tariff protection.
– Convertibility of currency.
– Stable legal and administrative regime
– A commitment to the canons of an open
economy
Cont….
 FUNDAMENTALS OF SEZs
Look at Chinese SEZ-Shenzhen SEZ

– Total Area of Shenzhen – 1,952.84 sq. kms

– Area of SEZ - 395.81 square kilometers

– Harbouring 3.5 million people

– $30 billion in FDI

– 3 million employment

– Equipped with the state-of-the-art infrastructure

– Effective port facilities,

– Simplified procedures,

– Fully flexible labour policy in terms of hiring and firing.

 FUNDAMENTALS OF SEZs
Look at Jebel Ali Free Trade Zone in Dubai

– Area - 100 sq km

– Home to over 1,600 companies from 85 countries

– Triggered the economy and development of Dubai

 INDIAN SEZs- AREA REQUIREMENT
Total Land in India 2973190 sq km
Total Agri Land in India 1620388 sq km (54.5%)

Total SEZ area would not be more than 0.112% of Agri Land. Let us
have a look at Area requirements of SEZs
SEZs Area requirement [approx]
Formally approved and notified 623 sq km
[FA]
In-principal approvals [IP] 1218 sq km

Total Area for proposed SEZs 1841 sq km

(FA+IP)
 FACTS ON INDIAN SEZs

Investment made in Rs. 67347 Crores (as of 31.12.07)

notified SEZs
Employment created in 61015 persons (Direct Employment
notified SEZs generated after February 2006) (as
of 31.12.07)
Employment in 7 SEZs 1, 83, 354 persons (as on
established by the 31.12.2007)
Central Government

Cont….
 FACTS ON INDIAN SEZ
Exports from the functioning SEZs during the last three years
are as under:
Exports (Rs. Growth Rate of
Year
crores) exports
2003-2004 13,854 39%

2004-2005 18,314 32%

2005-2006 22,840 24.71%

2006-2007 34615 52%

Exports effected during April-December 2007)

Rs. 40000 Crores (Provisional) Cont….
 FACTS ON INDIAN SEZ

Export projection for 2007-08 Rs. 67088 Crores

(200% increase in 2
Years)
Export projection for 2008-09 Rs. 1, 24, 683 Crore

Source: www.sezindia.nic.in
 SEZ ACT, 2005

Passed by Parliament in May 2005

Received Presidential assent on 23rd June 05

Came into effect on 10th Feb 06 supported by

the SEZ Rules

Cont….
 SEZ ACT, 2005
The SEZ Act 2005 envisages key role for the State
Governments in Export Promotion and creation of related
infrastructure.

A Single Window SEZ approval mechanism has been

provided through a 19 member inter-ministerial SEZ Board
of Approval (BoA).

The applications duly recommended by the respective

State Governments are considered by this BoA
periodically.

All decisions of the Board of approvals are with consensus.

IMPORTANT SECTIONS OF SEZ ACT 2005
SEZ ACT, 2005 contains

– Eight Chapters

– 58 Section

– Three schedules
 SEZ RULES, 2006

– The SEZ Rules provide for different minimum

land requirement for different class of SEZs.

– Every SEZ is divided into a processing area

where alone the SEZ units would come up and
the non-processing area where the supporting
infrastructure is to be created.

Cont….
 SEZ RULES, 2006
The SEZ Rules provide for :
– Simplified procedures for development, operation, and
maintenance of the Special Economic Zones and for setting
up units and conducting business in SEZs;

– Single window clearance for setting up of an SEZ;

– Single window clearance for setting up a unit in a Special

Economic Zone;

– Single Window clearance on matters relating to Central as

well as State Governments;

– Simplified compliance procedures and documentation with an

emphasis on self certification
 CHAPTER I-PRELIMINARY

 “Special Economic Zone for multi-product” means a

Special Economic Zone where Units may be set up for
manufacture of two or more goods in a sector or goods
falling in two or more sectors or for trading and
warehousing or rendering of two or more services in a
sector or rendering of services falling in two or more
sectors;

 “Special Economic Zone for specific sector” means a

Special Economic Zone meant exclusively for one or more
products in a sector or one or more services in a sector;
DEVELOPER’S PERSPECIVE
 RISK ELEMENTS

Long gestation period - 5-7 years.

Relatively high investment towards land

acquisition, infrastructure and facilities
building,

High uncertainty about enough occupation of

the Zone by entrepreneurs.
 REVENUE CONSIDERATIONS

For the Developer, a SEZ is basically a profit-

centre Project.

Return of his initial capital investment, has to

come from the lease of plots and buildings in
the SEZ.

He must also get extra returns matching the

very high stake, long gestation period and the
risk involved in the Project.
PROCEDURE FOR SETTING UP OF SEZ

Step-1
After identifying the area proposal can be made to

1. State Government 2. Directly to the

[St. Govt.]
On receipt of the proposal
1. St. Govt. should ensure
whether all requirements as per
Rule 5 are being complied with or
not
2. After that it forwards the
proposal, with its
recommendations, to the BOA,
within 45 days.
Board of Approval [BOA]
Proposal can be made to Board of
Approval, after approval by the
Board concurrence of the State
Government to be acquired within 6
months
Contd…..
 Step-2
BOA may approve, modify or reject the proposal as under:

If APPROVED If MODIFIED If REJECTED

BOA will communicate 1. BOA will BOA will record the
such approval to communicate such reasons of rejection
the Central Govt. modifications to the and communicate
applicant to the Central Govt.
Central Govt. will
2. If modifications are communicate to the
accepted by the applicant
applicant, the BOA
shall communicate
approval of proposal
to the Central Govt.

Contd…..
 Step-3
Central Govt. after receiving communication from BOA, shall
grant the Letter of Approval [LOA] within 30 days of the
Communication received from BOA as under.

Formal Approval in Formal Approval in

FORM-B FORM-C In-principle approval
in
In the cases where For providing FORM-B1
the land is in the infrastructural
possession facilities [validity – 1 yr –within
of the Developer. in the SEZ. Which Developer shall
submit suitable
[validity – 3 yrs for [validity – 3 yrs for proposal for formal
implementation of implementation of approval in Form-A
Proposal Proposal Extension- 2 yrs]
Extension- 2 yrs] Extension- 2 yrs]
Cont….
 Step-4
The Developer has to furnish to the Central Government,
the particulars of the identified area, with proof of
legal right and possession and a certificate from the
State Government or the authorized agency that
the said area is free from all encumbrances.

Where the Developer has leasehold right over the identified area,
the lease shall be for a period not less than twenty years.

The identified area shall be contiguous and vacant

and it shall have no public thoroughfare.

Cont….
 Step-5
Notification of SEZ by Central Govt.:
Central Govt. after satisfying that all the requirements are
fulfilled, shall notify the identified area in the state as a SEZ

Step-6
Grant of approval for Authorised Operations:
The Developer can submit to the Board the details of
operations proposed to be undertaken in the SEZ for obtaining
authorization at the time of seeking approval
for setting up of SEZ or thereafter.

Board may authorize the Developer to undertake such

Operations in SEZ, as may be authorised by Central Govt.
 NOTIFICATION No. S.O.1846 (E) Dtd.
27.10.2006
Authorized Operations for following category of SEZs have been
issued:

(A)Information Technology/Information Technology Enabled

Services, Bio-technology and Gems and Jewellery Special
Economic Zone:

(C)Sector Specific Special Economic Zones

(E)Multi Product Special Economic Zones

This list would be used by the Board of Approval for authorizing

operations to be undertaken in a Special Economic Zone which alone
would qualify for exemptions, concessions and drawback.

COPY OF THE NOTIFICATION CAN BE OBTAINED FROM

www.sezindia.nic.in
ARE TAX INCENTIVES
REAL DRIVERS?
ARE TAX INCENTIVES REAL DRIVERS?

B) Indirect Taxes
Basic Customs Duty (BCD) 10%
Additional duties of Custom 16%
Education Cess 3%
Special CVD 4%
VAT 12.5%
Service tax with Education Cess 12.36%
Octroi / Entry Tax 1 % to 4 %

Out of this, the real incidence would be that of BCD plus

Octroi, since all other taxes are vatable or adjustable for
the domestic player too. The exemption in terms of Indirect
taxes is presently at 10% for the SEZ or SEZ Unit.

Contd ….
ARE TAX INCENTIVES REAL DRIVERS?

By the time most of the SEZs become

operational, the average duty would be
between 5% to 7% for most of the inputs.

When Chinese SEZs were set up, the duty

differences were too high and therefore SEZs
enjoyed substantial exemptions thereby
reducing the cost of production coupled with
direct tax concessions.
ARE TAX INCENTIVES REAL DRIVERS?

B) If Direct tax concessions are considered objectionable by

WTO, it would lead to erosion of competitiveness of SEZs.

C) Department of Revenue is already questioning about the duty

foregone amount which they expect to be around Rs.90,000
crore plus. Hence any subsequent changes in the SEZ policy
(if introduced) with regards to tax concessions will create
serious problem for the entrepreneurs.

D) Due to high incidence of taxes prevailing in the country, we

get lured to the idea of total tax exemption. Whether such
thinking would lead to successful business in a highly
competitive world needs to be examined by each individual
player.
SWOT ANALYSIS FOR INDIAN
SEZ
 SWOT ANALYSIS FOR INDIAN SEZ
Strengths:
– Skilled Manpower – knows English

– Worldwide acceptance of capabilities in fields like

Pharmaceutical manufacturing & research
Clinical trials
Manufacturing auto parts
Engineering designing & consultancy, IT & ITES
Entertainment etc etc

– Financial & other institutional Networks like Stock

Exchanges, Insurance Companies, Educational Institutes
etc.

– Attraction of a large ‘Indian’ market:

growing middle class with purchase power on a continued
basis for next two decades.
reducing duties year after year,
SWOT ANALYSIS FOR INDIAN SEZ
Weakness:
– Infrastructure bottlenecks – serious ones,
particularly connecting infrastructure like Roads
leading to SEZs.
– Political changes
– Convertibility of Currency on Capital A/c
– Red Tape
– Labour reforms
– Zones by & large are still zones not smart cities.
– Inappropriate locations
– Time frame for long gestation period minimum 4
to 5 years from now in absence of infrastructure
development.
SWOT ANALYSIS FOR INDIAN SEZ
Opportunities:
– An alternative manufacturing base, particularly
compared to Chinese SEZs.
– Services SEZs do not require movement of input
and output physically and hence, surrounding
infrastructure may not matter much.
– Economic development continues inspite of political
changes.
– For multi-product SEZs, almost 23 ports are
available. Most of them are likely to be EDI
compliant.
– New small ports are also being developed keeping
SEZ concept in mind.
SWOT ANALYSIS FOR INDIAN SEZ
Threats:
– No more low labour costs - many countries are competing.
– Technology Transfer can make any country competitive.
– Formation of economic blocks & possibility of Intra trade.
– Negotiations for FTAs with many countries may erode
competitiveness.
– The pattern of buying & selling may not continue. With
relocations of industries in other third world countries, new
competitors will emerge.
– Serious problems at WTO - if incentives (Tax incentives) are
considered as countervailable, then exports will get
affected.
ISPAT SEZ - VISION &
OVERVIEW
 ISPAT SEZ

VISION

“ To create a Globally Competitive Business Environment

in the State of Maharashtra with World-class Infrastructure
which serves as an Economic Hub catering to Global and
Domestic Markets.”
 STRATEGIC LOCATION
Existing Trans-harbour link
Navi-Mumbai

Mumbai
Proposed Trans-harbour link
Proposed Int’l Airport

JNPT Port

Proposed Navi Mumbai SEZ

Proposed Maha Mumbai SEZ

Proposed Uran – Rewas Bridge

Proposed Rewas Port SEZ

Our SEZ Project

 SCOPE OF PROJECT

Horizontal Development (by Vertical Development (by 3rd

Project SPV/s) parties or Co-Development)
• Built-up Premises for
• Site Development • Industrial
• Commercial
• Connectivity / Utilities • Residential
Roads
Water
• Social Infrastructure
• Entertainment
Drainage
• Hospitals
Sewerage Treatment
• Hotels
Waste Management
• Education
• Sports & Recreation
Utilities (by Affiliates)
Management of Township /
• Power Generation and Distribution
Real Estate & Shared
• Telecom
Services (by Affiliates)
• Gas distribution
• Water Supply
 SEZ –USPs
Better work culture, good education, leadership vision
A competitive manufacturing region
Region has export orientation
High caliber, low cost technical staff
World class living / residential accommodations
Educational and Health Parks
Tourism, Leisure, Entertainment and Recreation
International Financial Service Center with Offshore Banking Units
Access to International Airport and Seaport
Industrial & Service Parks – Biotech & Pharma, Textiles & Apparels, IT,
Agro & Food Processing, Gem & Jewellery, IT & Communication etc.
 IMPACT OF SEZ ON STATE OF
MAHARASHTRA

Industrial progress

• SEZs alone to create employment opportunities for over 25 lakh people

over a period of 10 years.
• Larger flow of investments including FDI to the tune of Rs. 250,000 Crs (=
USD 50 Bn.)
• Consolidate Mumbai’s leadership as the commercial & financial hub of the
country.
• Maintain leadership in core sectors including Engineering, IT, Auto, Pharma,
Biotech, Textiles & Apparel etc.

Infrastructure
• Positioning as the “Transit Hub” in the Asia – Pacific belt.
• Development of connectivity infrastructure enhancing linkages to hinterland,
regional and international destinations.
• Decongestion of the “Infrastructure Strain” on Mumbai
• Emergence of a city with world-class Utility, Social & Recreational
Infrastructure.
STATE – OF – THE ART INFRASTRUCTURE
Units within the SEZ would have access to world class
infrastructure and services.

Units can choose between land plots, flatted factories

and built-up office space.

These facilities would be ready-to-use with all basic

infrastructure and services in place.

Other infrastructure in terms of convention centers,

recreational facilities and social amenities are also
proposed.

Well-connected road and rail linkages - National

Highways (NH3, 4, 8, 9 & 17) link the area to the rest of
the country.

This SEZ project is proposed to be executed through a

Special Purpose Vehicle (SPV).
 SEZ OPPORTUNITY
Marketing of the - Opportunity to undertake marketing activities for the entire

Zone zone.

- Undertake marketing & selling of zone components, the

parks etc.

EPC - Opportunity to undertake EPC contracts worth US$ 600

million for entire component or for part of the component

Utilities - Take up the entire work on a specific component. Eg. Power:

[Generation, transmission and distribution, Fix tariff and

collect direct revenue from the customers]

Multi Modal - Take up the entire work on a specific component

Connectivities

Zone - Administration of the entire SEZ

Management - Operation and Maintenance of zone assets

 REVENUE MODEL FOR THE SEZ
The SEZ will be developed in phases, with each phase comprising
development of a specified percentage of industrial, port, commercial and
residential zones as well as support infrastructure.

It is proposed that on development:

– industrial and institutional zones ( including a port zone ) will be
leased to clients under a long-term lease with an upfront lease
premium;
– commercial plots and ready-built infrastructure will be leased on a
monthly rental computed at a fixed rate per sq ft of the area leased;
and
– residential development will be leased in accordance with the SEZ Act,
2005.

The SEZ would earn facility management fee for
entire SEZ infrastructure, engineering and other
the SEZ. The fee would be based on prevailing
the Central SEZ, Act or policies framed by
Maharashtra in this regard.
managing and operating the
maintenance services within
market practices and as per
the State Government of

In addition to the revenue generation from development and lease/ sale of

the SEZ, it is estimated that the activities within the SEZ will generate an
export turnover to the tune of USD 1-1.25 billion over a period of five years
once it is fully operational.
 TOTAL PROJECT COST
As per the preliminary report, total cost for development of
the SEZ is anticipated to be approximately Rs 5,200 crores

Significant capital would be invested towards development of

the external infrastructure of the SEZ in collaboration with
the State Government of Maharashtra, including multimodal
local transportation systems, rail linkages, etc.

Approximate
Major cost heads value
(in Rs crores)
Land cost 750

Cost of development 3300

Cost for built up area 800

Cost of project management 350

Total 5,200
 PROJECTED VALUE
• 2,500 Acre project
• SEZ approval
• Currently about 15 multi-product SEZ approvals in India
• 5 Multi-product SEZ approvals in Greater Mumbai,
Maharashtra
• Proposed investment of Rs. 1,960 Cr. on project development
and infrastructure

Overall Project value will appreciate significantly upon

development of surrounding infrastructure
Land prices are expected to multiply several-fold in 3-
5 year horizon
e.g. Panvel land is selling from Rs. 50 lacs – Rs. 2 Cr.
/ acre depending on location
MANPOWER SEZ
PROJECT
 Director (1)
ISPAT SEZ ORGANISATION / STRUCTURE Secretary (1)
GM (2)

(STATUS) AM (2)
Legal (1)
 Assistant (1)
Project Director (1) Basant.S Himalian. Sr. Officer (1)
Consultant (1)
Total : 1 + 9


Co-ordination Secretary 
(1) Amarjyoti Cinderel
(1) la

QA / HSE
QC (1)

PP& C ED (1) UP (1) Const.(2) Land Acq. Security CA (2)

auditing / (2) RR & SR MM IL
MS AQL (10)

LSN Om
 Pawar 
Vijay
Waikar 
Minaks
hi 
Commercial (2) HR / IR (1) Admin. (1) Compliances & Special Plants, Utilities (2) Procurement &
External Issues (1) Projects (2) Equipments & Contract (2)
Machinery Alok
Mahapa 
t
Anupm
Thakur 
Legal
CC 
 MANPOWER INDUCTION – SEZ PROJECT
Sr. Dept. Number of persons required
No.
By March By Oct. ‘ By By Oct’
2009 09 March ‘ 10
10
1. P.D.’s Sectt. 3
2. QA / QC -
3. S.H.E 1
4. PP & C 1
5. E.D. 1
6. U.P. 1
7. Constn. 2
8. Land. 10
9. Security 1
10. C.A. 2
………contd.
 MANPOWER INDUCTION – SEZ PROJECT
Sr.No Dept. Number of persons required
By March ‘ 09 By Oct.09 By March ‘ 10 By Oct.’ 10

11. M.M.I.L. -
12. Legal & Contract. 2

13. Utilities 2
(a) Power
(b) TR & DR
( c) Water/Sewerage
(d) IT & Telecom
14. P.M.E. -
15. Compliances & 1
External Services

16. Admin. 1
17. HR / IR 1
18. Commercial 2
19. Special Projects 1
TOTAL 32
 RECRUITMENT FOR SEZ PROJECT
Pooling of resources from various departments. Details in
next slide.

Persons already on Board:-

 Project Director : Maj. Gen. Basant S.

Himalian
 Secretary : Ms. Cinderella D’ Silva
 GM Utilities : Lt. Col. Alok Mahapatra
 GM Land : Col Om Pawar
 Asst Manager Utilities : Anupam Thakur
 Co – Ordination / Recruiter : Mr. Amarjyoti Singh Deo
 Legal : Mr. Chandrakanth
Chaudhri
 Land Consultant : Mr. Vijay V. Waiker
 Back Office Exec. : Ms. Minakshi Londhe
 PP & C : Mr. Lakshman Neigi
DIFFICULTIES FACED BY RIPL STAFF
Provision of swipe / Identity cards to all RIPL employees.

Opening of Bank accounts & remittance of monthly salary direct to

bankers.

Lotus Notes facilities.

Ispat E-mail ID to all RIPL employees.

Provision of Employee Number.

KM Portal and ESS facility be provided.

Online PMS for year 2008 – 09.

Direct telephone line for provision of fax machine.

Printer, scanner & photocopier be installed.

RIPL letterhead, visiting cards, logo and the SEZ name etc.

Package AC is not functioning properly in SEZ office on 8th floor,

Casablanca. Needs replacement.

Provision of laptops / desktops to all RIPL employees.

SEZ LAND
 SEZ LAND DETAILS
 VILLAGES : Bahirichapada, Ramkotha, Sonkotha,
Mankule & Kharhashiware.

 THESIL : Alibag

 DISTRICT : Raigad

 TARGET

 To acquire 100 Acres / week

 22 weeks to complete acquisition (December 2008)

 STATUS

 Land acquisition is slow due to funds allocation.

 Target to have 500 Acres registered land ASAP

 LAND USAGE
2,500 acres of land is expected to be developed in two sub
phases of four years each
Core infrastructure of the project will be fully developed and
operational in a phased manner over a period of 8 years
Development of other facilities and occupation of the SEZ to
its full potential will extend up to 10 years from start of the
project.
Land usage Percentage Area in Acres
(Approximately) (Approx.)
* Processing Zone 51% 1275

* Non Processing Zone 49% 1225

Total 100% 2500

* Details in following slides

 LAND
DISTRIBUTION
Processing Zone(1275 acres)
 Logistic park including warehousing FTZ, cargo jetty,

Helidrome, Trading &Amusement park – 300 acres.

 IFSC – 150 acres
 Hi tech industries – 200 acres
 Electrical Machinery – 300 acres
 IT / ITES – 75 acres
 Hotels & Resorts – 50 acres.
 Other Engineering – 200 acres.
 LAND DISTRIBUTION

Non – Processing Zone (1225 acres)

 Common utilities & infrastructure (235 acres)
 Residential – 800 acres
 Entertainment/recreational/institutional/commercial /
Retail – 125 acres
 Transportation & Infrastructure – 65 acres
EFFORTS IN GETTING LAND REGISTERED UNDER SECTION 63 (1) (A)
MD met the CM and renewed our request for registering the land
under Section 63 (1) A on 2nd Feb 2008.

Project Director SEZ, Mr. R. Donde & Mr. Gaurav Singhania taken
audience with CEO MMB on 4th Feb 2008.

Secretary Port & Transport convened a meeting of CEO MMB,

Development Commissioner (Industry) and Ispat Officials on 6th Feb
2008 to know the status of case.

CEO MMB convened a one to one meeting with Ispat officials on 12th
Feb 2008.

Ispat Officials met Secretary to CM on 14.02.08

Ispat Officials met Secretary, Industry on 22nd Feb 2008.

MD again met the CM on 25th Feb 2008 to pursue the issue.

Ispat Officials were called by Secretary Transport & Port to review the
present status of the case on 26th Feb 2008.

Ispat officials met Development Commissioner to give her the

progress of land acquisition on 4th March 2008.

Ispat officials met Principal Secretary, Port & Transport again on 8th &
16th April ‘ 2008.
 LEGAL / GOVERNMENT ISSUES

 Permission from Development Commissioner for registering

the land under chapter 63 (1) (a)

 Status & Way Forward :

 Had meeting with Transport Sec. and Development
Commissioner on 6/2/08 and number of times thereafter.

 Had several meetings with CEO, MMB – who has been

discouraging us. Suggesting a tripartite meeting with RIL,
Ispat and Govt. to resolve issue. Not a plausible solution.

 Met Mr. Rao, CM – Secretary by 13/2/08 to exert

pressure on Development Commissioner.

 Need to exert pressure from CM again and again.

Contd…
 LEGAL / GOVERNMENT ISSUES
 Writ petition:

 Filed to prevent COM from issuing notification for the

land reservation for Rewas Port.

 Status :

 Cancelled as per MD’s instructions.

 MD has now directed to file the suit.
Status Of Land Purchase at REWA (Rewa
Infrastructure Pvt. Ltd.) from (23.10.2006 to 31.05.2008)

Sr. Details Nos. Of Area in Total Amount Balance Stamp Registra Annexure
No Vendors Acres Considerati Paid to Amount Duty tion Fee
on Payable Vendors Payable to
Vendors

Sale Deed 35.157 1,553,24

1 Executed 21 5 17,335,686 17,335,687 0 264,015 A

Sale Deed
Executed in
(Vani 1,695,70
2 Minerals) 12 25.363 13,949,375 13,949,375 2 251,553 B

Registered 6,871,40
3 Agreement 70 156.500 86,074,876 74,896,915 11,177,906 0 993,350 C

Continued….
Status Of Land Purchase at REWA (Rewa
Infrastructure Pvt. Ltd.) from (23.10.2006 to 31.05.2008)
Sr. Details Nos. Of Area in Total Amount Balance Stamp Registrati Annex
No. Vendors Acres Considerati Paid to Amount Duty on Fee ure
on Payable Vendors Payable to
Vendors
Non -
Registered
4 Agreement 19 64.803 33,089,812 23,763,425 9,326,386 D
Non -
Registered
Agreement
with Stamp
5 Duty Paid 5 11.048 5,787,375 1,502,812 4,284,563 515,300 E

Proposed
purchase
agreement
s awaiting
6 payments 28 70.090 38,549,500 0 38,549,500 F

155 362.960 194,786,623 131,448,214 63,338,355 10,635,642 1,508,918

PRIORITY FOR ACQUISITION
 PRIORITY OF LAND ACQUISITION – PHASE 1

HASHIWARE &
SONKOTHA
Holding 42 Acres of
contiguous land.
Available chunk of
contiguous land:- >600
acres.
Immediate requirement of
208 Acres of land to meet
the demand.
LAND COMPRISED BY SVY.
NO: 320.( Max. Bhagat
GP. Land.
PRIORITY OF LAND ACQUISITION – PHASE 2

BAHIRICHA PADA.
Holding 82 Acres of land.
Available chunk of
contiguous land:- 400
acres.
Immediate requirement of
168 Acres of land to meet
the demand.
 FUNDS REQUIREMENT FOR LAND PURCHASE

A. TO CLEAR AGENTS DUES : 9.5 CR.

B PURCHASE OF 200 ACRES OF LAND : 14 CR.
C TOTAL :23.5 CR.

NOTE: 30 CR. PER MONTH FOR ACQUISITATION OF

PROPOSED 3000 ACRES OF LAND BY THE END OF DEC.
2008.
ISPAT SEZ - UTILITIES
 ESSENTIAL UTILITIES
1. POWER
( Generation, Transmission & Distribution)

2. WATER SUPPLY
( Augmentation of water supply system)

3. GAS DISTRIBUTION

4. TELE COMMUNICATION

Note: Entire work of each of the above utilities will be

taken up as a specific component.
 OTHER UTILITIES
1. DRAINAGE SYSTEM INCLUDING SWD
( Under Ground Network)

2. SEWAGE SYSTEM
( TREATMENT PLANT )

3. SOLID WASTE MANAGEMENT

4. DESALINATION / RECYCLING OF WATER

DRAINAGE / SEWAGE SYSTEMS INCLUDING TREATMENT PLANT &

SOLID WASTE MANAGEMENT WILL BE TAKEN UP BY SPV/s AS A
PART OF HORIZENTAL DEVELOPMENT.

DESALINATION / RECYCLING OF WATER MAY BE TAKEN UP AS A

PART OF CONCERNED INDUSTRY AND DELINKED FROM GENERAL
HORIZENTAL DEVELOPMENT. THE SAME MAY BE TAKEN UP BY
CONCERNED CO-DEVELOPERS ON AS REQUIRED BASIS.
LINE DIAGRAM – POWER GENERATION
/ TRANSMISSION /DISTRIBUTION
 POWER
Generation, Transmission & Distribution
 It is envisaged that the ISPAT SEZ would source Power from the
Grid, with adequate integrated Stand by Power facility to ensure
uninterrupted power supply to all the units & areas within the
SEZ.
Power Supply to ISPAT SEZ would be availed through the major
Transmission Sub Station at Nagothane. The Sub Station is of
400 / 220 KV Capacity & is connected to State Grid. This facility
has enough capacity to dispatch two 220 KV transmission feeder
Lines to ISPAT SEZ.

 HT Reception, Transmission & Distribution of Power within the

SEZ would be the responsibility of SPV. The same will include HT
Receiving / Transmission Stations, Distribution Substations
(Over Head Lines / Under Ground Cable network ), HT / LT
Switch Gears, Protection System & Metering.

 Stand by Generation of 300 MW Power, either through

conventional or non-conventional method / Captive Generation
would be materialized by Affiliates as Specific Component.
 ASSESSMENT & SOURCE OF POWER

 As per initial assessment, requirement of

Power for 2500 Acre SEZ would be
approximately 500 MVA & can be
sourced from existing Grid facility at
Nagothane.
TRANSMISSION & DISTRIBUTION
MSETCL will carryout the wheeling of
transmission of Power from Nagothane Grid
Facility to Ispat SEZ ( Approx 50 KM ) at cost
under contract.

HT Reception, Transmission & Distribution within

the SEZ would be the responsibility of SPV.
 APPLICATION

Application forms for Power has since been

obtained which will be processed on acquisition
of required land in the name of SEZ.

7/12 details are required to be furnished along

with registration documents. MRSS (Main
Receiving Sub Station ) duly marked on map
depicting acquired land is to be submitted to the
authorities for High Voltage Reception.
DOCUMENTS REQUIRED ALONG WITH POWER
APPLICATION
List of proposed machinery.

Plot possession Certificate / 7/ 12 abstract / N.A.

Permission

Registration Certificate from DGTD/SSI/ Texmark

N.O.C. from Director of Industries.

N.O.C. from Industrial Safety & Health

Department, Konkan Bhavan, Navi Mumbai

N.O.C. From Local Authorities / MIDC. For the load.

Consent from the Water & Air Wing.

Point of supply drawing.

CONTD…
Whether the area is coming under BMRDA.
 DOCUMENTS REQUIRED ALONG WITH
POWER APPLICATION
Details of Electrical Power requirement & details of
manufacturing / process activities for which the Power supply
is needed

Monthly estimated energy consumption / working shifts.

Partnership deed/copy of memorandum of article &

association of the company / A documentary evidence of
registration as a property concern.

A copy of resolution authorizing the persons to sign an

agreement with MSEDCL & affixing a common seal on the
agreement or a specific power of attorney for signing an
agreement for power with MSEDCL.

Xerox copy of latest energy bill

M.D. For previous 12 months.

 WATER SUPPLY
 As per initial assessment requirement of Water for
2500 acre SEZ would be approximately 70 MLD.

 Government of Maharastra through Ministry of

Irrigation is required to be approached for the same.
GOVERNMENT SUPPORT AND LEADING
CONSULTANTS ADVISING SEZ PROJECT

Received “In-principle” SEZ approval from the

Board of Approvals (Government of India) – 7th
January 2008.

The project enjoys full support from Government of

Maharashtra

Ernst & Young are our project advisors and have

prepared a business plan

IL&FS are assisting in technical and financial

feasibility

Little & Co. will be our Legal advisors

 VARIOUS CONSULTANTS ON BOARD

 M/S E & Y for concept development plan of Ispat SEZ.

 M/S E & Y for filing applications for Govt. approval of the

SEZ, authorized operations & SEZ benefits.

 M/S IL & FS ……Project Management Consultants.

 FUNDS / BUDGET

 The fund requirement for SEZ project is approx. 5200 Cr.

 Fund requirement of about Rs. 7.0 Cr. weekly to acquire 100

acres

 Require 20 Companies for acquiring 1,000 acres of land.

Status :
 6 companies given including Vani Minerals & Rewa
Infrastructure.

Responsibility: Mr. JP Agrawal.

 IMPENDING ACTIVITIES
 Presentation by M/S E & Y for finalisation of SEZ development
plan.

 Presentation by M/S IL & FS for project management

consultancy.

 Forming SPV and obtaining approval from BOA.

 Approval from Industry Ministry ( GOM )for registering the

land under 63 (1) (a).

 Filing application for product specific SEZ (250 acres) formal

approval of BoA, GOI approval.

 Finalization of various consultants including master planners.

 Filing application for formal approval from BoA ( 3000 acres)

 Finalization of office complex at Thapar. – CBD Belapur.

IMMEDIATE DECISIONS & ACTIONS ENVISAGED
Transfer of 51 % or more equity to RIPL (SPV).

File application to BoA for SPV approval.

Provision of Rs. 24 crores to pay for earlier land dealings and to

purchase land so that 250 acres contiguous land is available.

Make Rs. 30 crores per month available for purchase of balance land
upto December ‘ 2008.

File application for formal approval for a product specific SEZ (250
acres) to BoA.

File writ petition against the orders of Development Commissioner,

Industry.

Finalise the conceptual model of SEZ (Processing & Non – processing

zone) as presented by M/S E & Y.

Obtain NOC from MMB / Port & Transport Ministry for registration of
land for multi product Ispat SEZ.

Get acquired land registered under Section 63 (1) (A).

Continue recruitment in RIPL in a phased manner.

Hire Thapar Complex as an additional office space for SEZ office.

 WAY FORWARD
 Finalization of SEZ Development Plan by end June 2008 (E & Y)
 Preparation of Business and Finance model by end July ‘ 2008.
 Selection of project Management Consultant by August 2008 (IL & FS).
 Nomination of Master Planners for detailed Master Plan by Sept ‘ 2008.
 Selection of various Technical Consultants by October 2008.
 Acquisition of land – 2500 acres by end November 2008.
 Obtaining BoA formal approval for Ispat SEZ by December 2008.
 Obtaining Governments notification of Ispat SEZ by March 2009.
 Application for Authorized Operations in SEZ by April 2009.
 Obtaining SEZ benefits’ approval from Govt by June 2009.
 Construction of horizontals and infrastructure from Oct ‘ 2009.
THANK YOU !