Andhra Pradesh Your Growth Catalyst…. Critical Investor Requirements Easy Access to Domestic &...

Andhra Pradesh

Your Growth Catalyst…

Critical Investor Requirements

Easy Access to Domestic &

Global Markets

Investor Requirements World Class for

Infrastructure Mega Chemical Complex

Availability of Raw Materials

Investor Friendly Contemporary Governance

Andhra Pradesh: Your Growth Catalyst

I. .Easy Access To Domestic & Global Market

Two Pronged Focus of the MCIE

Mega Chemical Industrial Estate

Fostering Effectively Growth of the Tapping Global

Domestic Opportunity Industry


Visakhapatnam -The Destination for Global Chemical Industry


Strategically Located: Excellent International Market Connectivity

Port to Port Distance From Key Markets - In No of Days

Vizag Shanghai

Colombo 3 13

Singapore 5 8

Jakarta 7 8

Tokyo 16 4

Penang 4 9

London 26 36

Hamburg 27 37

Dubai 9 20

Cape Town 17 27

Boston 32 41

www.distances.com


Strategically Located: Excellent Domestic Market Connectivity

Visakhapatnam’s Proximity to Major Points of Demand: • Solvents • Paints

Kolkata: • Plastics & Fiber Major Industrial • Auto Components Base • Dyes Pune:

• Agrochemicals Paints & Automobiles

Connectivity from Visakhapatnam Hyderabad: Distance in Kilometers Pharma & Biotech Visakhapatnam

Hyderabad 650 km

Chennai & its Mumbai 1,361 km

Hinterland Auto & Auto Ancillary Kolkata 866 km Paint

Chennai 810 km Tirupur: Textile &

Pune 1,198 km Apparel


I. . World Class Infrastructure

Established Infrastructure


Ports

Easy Access to Three Major Ports

Exclusive Gangavaram Port - 15 Km by proposed Costal Corridor

- 32 Kms through dedicated logistics corridor

Visakhapatnam - 45 km Kakinada - 100 km

Geographical Advantages

Low Tidal Amplitude

Visakhapatnam - Approx. 1.0 mt

Western coast of India : Approx. 5.0

mt

Safe Seismic Zone - Visakhapatnam falls under Seismic Zone II

Zone II: The probable intensity is Modified Mercalli (MM ) VI. This zone is referred to as Low Damage Risk Zone.


Ports : Gangavaram - Dedicated Port for MCIE

Dedicated ‘All-weather Greenfield Sea Port’ at

Gangavaram Deepest Draft Port in India (21 m)

Single Point Mooring Facility - for Ultra Large Crude Carriers

(ULCC) Dedicated Jetties for Chemicals/ Oil Vessels.

Dedicated Storage / Tankage facilities at Port

Pipeline network connecting Storage tanks to Units at MCIE

Dedicated Logistics Corridors connecting the Port to the Site

Andhra Pradesh: Your Growth Catalyst Source: Data monitor

Connectivity to Gangavaram Port Dedicated Logistics Corridor of 32 Km

having: 4 lane road connectivity Double rail tracks Pipeline network

Gangavaram Port

Proposed MCIE Site Costal Corridor - 15 kms

• Pipeline network for smooth flow of the feedstock from Port


Availability Of Land

6,000 acres of prime land already

acquired Another 20,000 acres

acquisition in process

Key Benefits

15 Km from Gangavaram Port (Via Costal

Corridor) 45 Km from Visakhapatnam Port

40 Km from Air Port


Proposed Site for MCIE

Visakhapatnam Port (45 Km)

Visakhapatnam Airport (40 km)

Pharma City (10 km)

Gangavaram Port (32 km)

Visakhapatnam Steel Plant (25 km)

Proposed MCIE Site

Additional Land to be Acquired

Road

Located on National Highway 5: Part of the 4-lane Golden Quadrilateral

Highway Special Costal Corridor : reducing the distance by 15 Km

Key Benefits

Roads radiating in all directions guarantees fast transportation and

connects the site with other prominent locations.


Rail

Key Rail Link Between Southern & Eastern India

MCIE Site - 15 Km from Chennai - Howrah Line

Berth Connectivity to the Ganganvaram and Visakhapatnam

Port Rail link 32 Kms from the Gangavaram Port

Key Benefits

Enables transportation of raw material/ feedstock/ final product for domestic market

Facilitates movement of human resources &

labour Andhra Pradesh: Your Growth Catalyst

Airport

Daily connectivity by air to all Indian

Metros All major Airlines fly to

Visakhapatnam Airport is being up-graded for handling wide bodied aircraft with night landing

facilities (NLF) Existing International Air Connectivity from

Connectivity From Proposed International Airport Visakhapatnam Hyderabad

Chennai Frankfurt Key Benefits

Delhi Singapore

Hyderabad - less than an hour away Hyderabad Amsterdam

Fourth Largest International Airport in the Country Bangkok Mumbai Hub for Sahara Airlines Riyadh Raipur Aircraft Movements (in 000’s- April 2004)

Kuwait Domestic: 46.45 Growth: 23.6%

International: 11.94 Growth: 17.4% Dubai


Road /Rail / Airport

Proposed Chemical Industry Vishakapatnam Cluster of 30,000+ acres Airport

Proposed Special Costal Corridor - 15 km MCIE Special Logistics Corridor - 32 Km Site

National Highway 5 (Part of GQ) Railway Line


Urban Infrastructure

Taj Residency The Park ITC Sheraton Green park

Four luxury hotels operated by leading hospitality

chains World class housing/ leisure/ shopping malls

Well Connected (International & National) Postal and Telecommunication Network Facility (BSNL, AIRTEL, RELIANCE, IDEA, TATA INDICOM, HUTCH)

Key Benefits

Enables attraction and retention of quality human resources Ability to address rapid industrial growth

“Life is a chemical Process” - Antoine

Lavoisier Andhra Pradesh: Your Growth Catalyst

Education and R&D Hub

Visakhapatnam has one of the oldest universities of India: Andhra University, reputed for high standards in teaching and

research Specialized courses for study in science, technology, engineering, etc.

Andhra Pradesh: Attracting Talent

Type of Institutions Institutions ( Nos. ) Student Turnout per

Engineering colleges 238 ar

Polytechnics 140 22,635

Industrial Training Institutes (ITI) 510 70,350

Source: Director , Technical Education, Govt. of Andhra Pradesh


IICT -Mecca of Chemical R&D in India

Indian Institute of Chemical Technology, Hyderabad, the Constituent laboratory (CSIR) will be the nodal R&D lab supporting the MCIE

More than 400 highly qualified and skilled scientists/technical officers.

Over 150 IICT Technologies are in commercial Production and over 50 in Implementation.

Possesses world class infrastructure, instrumental IICT’s Focus R&D Areas

and analytical facilities. Drugs & Pharmaceuticals,

Bulk Organics & Intermediates Key Overseas Clients of IICT are: Polymers & Coating

Natural Products Smith-Kline Beecham (UK), Agrochemicals

DuPont Merck (USA), Coal, Gas & Energy

Cargill Inc (USA), Chemical & Mechanical Design Of

Cytomed (USA), Chemical Process Plants Novo Nordisk (Denmark) Biotechnology

Aisien Cosmos, Japan Environment Engineering

Evola, Switzerland etc. Process Safety Studies for Petrochemical/ Chemical Plants


Power

Infrastructure in Visakhapatnam

NTPC’s Super Thermal 1000 MW Power Plant at

Visakhapatnam Proposed expansion to 2000 MW by 2007

Dedicated Sub-station of 220 KVA at MCIE

Key Benefits

24 x 7 x 365 - Undisrupted availability of power for the units already in place

Most Competitive Industrial Power Tariff in the Country


Waste Management

Waste Management Project Site Infrastructure Existing in Vicinity of MCIE Siteat Jawaharlal Nehru Pharma City

Common Effluent Treatment Plant (CETP) being

set up at Jawaharlal Nehru Pharma City, 10 Km from the Site

Proposed Marine Outfall at Pharma City.

Secured Landfill Facility within 25 km from the site

Initiatives by GoAP JNPC- the ONLY pharma park in Initiated the Rapid environment impact assessment study India where through leading environment consultants

Individual units are exempted from Dedicated Multiple Effective Evaporator (MEE) will be setup at public hearing for MCIE environmental

Effluent disposal through exclusive Marine Outfall - 5 Km in the clearances Sea


I. . Raw Material Availability

Feedstock

Raw Material Availability

Access to Gas Reserves of 20 trillion cubic feet in KG Basin (120 Kms away from Vizag)

Petroleum Companies in process of setting up GAS GRID across AP

Availability of coal: 16926 million tonnes in Godavari Valley Coalfield (700 kms away from Vizag. (Geological Survey Of India, 2005)

HPCL refinery in Visakhapatnam

Current Naptha production at HPCL - 90,000 MTPM

Expected Naptha production at HPCL - 120,000 MTPM (After proposed expansion)

Key Benefits

Access to Multiple Cost-effective Fuel Options

Dedicated pipeline from refinery to MCIE - reduced operational costs


Water Supply

View of VIWSCO’s Industrial Water Canal

Easy Availability of water for Industrial Use

365 days assured industrial water supply from Visakhapatnam Industrial Water Supply Company Limited (VIWSCO) -

India’s only dedicated industrial water supply project

Dedicated water reservoir of 60 MLD at MCIE Site by

2006.

Key Benefits

Assured Industrial Water Supply


Investor Friendly Contemporary Governance I. .


Industrial Single Window Clearance Act State

Investment Promotion Board New Industrial

Investment Promotion Policy AP Infrastructure

Development Enabling Act (AP idea) SEZ Status

Liberal Labour Laws

…. From Red Tape to Red Carpet



Central Government Facilitations

Simplified Custom

Clearance Import Duty

exemption Specialized

Courts

Additional State Incentives

Tailor Made Special Incentive Package

GoAP will nominate a Nodal Officer to act as one point Contact

Appointed Environment Consultant to Obtain Clearances from

GoI 100% reimbursement of Stamp duty

VAT reimbursement


I. . Summary

Visakhapatnam - The Best Fit Location

• Significant reduction in transport time to key markets when Easy Access to compared to China

Domestic & • Access to rapidly growing Domestic Market- projected to be more than 7% of Asia Pacific by 2009 Global Markets

• Highest Land allocated for chemical Industry in Asia Pacific World Class Around 30,000+ acres

• Dedicated Greenfield Port with VLCC handling ability Infrastructure• 220 KV Power Sub Station at Site • Unlimited water

supply on demand • Excellent

market connectivity

• Easy availability of multiple fuel options and feedstock from alternate sources Availability of

• Natural Gas availability through GAS Grid connectivity from Raw Materials Krishna-Godavari Gas Basin

• Special Economic Zone Status Investor Friendly • Clearance through Single Window Contemporary • Nodal Officer Governance

• Special Customised Incentive Package


Thank You

Come, feel the chemistry…


Andhra Pradesh Your Growth Catalyst…. Critical Investor Requirements Easy Access to Domestic &...

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