Baroda Knowledge City © (IT / ITES SEZ) © Dr Rajesh Khajuria, MBA, PhD, CMC, FIMC, MIoD (London) Building Knowledge Bridge © (NASA Satellite Image - Ram.

Baroda Knowledge City©

(IT / ITES SEZ)

© Dr Rajesh Khajuria, MBA, PhD, CMC, FIMC, MIoD (London)

Building Knowledge Bridge©

(NASA Satellite Image - ‘Ram Bridge’ between India and Sri Lanka)

BRG Group

Dr R Khajuria TEAM 2

Baroda Knowledge City?

• 150 SEZ proposed / applied to Central Govt.– Including 50 IT/ITES SEZ – None in Gujarat!– 120 SEZ Approved by 17.03.2006*– 11 Operational SEZ, converted from FTZ– 50 SEZ Coming up all over India, 12 in Gujarat– Biotech Park at Savli, Baroda coming up

• Yes, Baroda Knowledge City» IT = Information Technology» ITES = IT Enabled Services (including BPO / KPO etc)» * Source: BOA, Government of India meeting» Image courtesy: TATA Broadband

Dr R Khajuria TEAM 3

Baroda is a Knowledge City

• Baroda is traditionally a Knowledge City, grown substantially by Legendry Maharaja Sayajirao (MS) Gaekwad of Baroda

• That is why he set up MS University of Baroda with unique educational programs, unparallel to any Tier II city of India

• Fusion Indian Enterprise with World Class Knowledge, and we have …………………………..Baroda Knowledge City

Dr R Khajuria TEAM 4

Baroda: An Edutainment City

• Baroda has everything that a Knowledge City wants….– Knowledge Capital of Gujarat– Cosmopolitan well developed city– Educated talented cultured young Graduates– Gardens, Health Clubs, Sports: Golf, Cricket, etc – Multiplex Cinema Theatres: Ionx, Chandan, Deep– Throbbing NRIs and – High Speed Internet backbone

• That’s why Baroda Knowledge City….

Dr R Khajuria TEAM 5

Baroda: A Knowledge Source

• Large pool of 100,000 Graduates p.a. from 11 Universities in 200 miles periphery:– Baroda (MSU), Vallabh Vidyanagar (SPU),

Nadiad (DDIT), Surat (SGU, NIT), Ahmedabad (GU, Nirma University, DAIIT), North Gujarat (NGU), Rajkot (SU) and Bhavnagar (BU)

• World Class IT Professionals from Baroda – Sam Pitroda, Dr Madhu Mehta, Dewang Mehta (NASCOM), Many more…

Dr R Khajuria TEAM 6

Baroda: Emerging Finance City

• Vibrant Stock Exchange• International Banks: Citibank, HSBC, Standard

Chartered, ABN Amro• Indian Banks: Bank of Baroda, State Bank of

India, Central Bank, Dena Bank, Union Bank, HDFC, ICICI, UTI, Yes, Kotak – 30 Banks

• Large Corporations: IPCL, IOC Refinery, GSFC• Security & Safety• Cheapest Space in India!

Dr R Khajuria TEAM 7

Destination: Baroda K-City

• Recently, 193 MSU Graduates offered job by Progen, BPO arm of Infosys at Pune, through Technology Promotion Trust (TPT)

• The Indian and Multinational IT / ITES firms are eager to come to a location, which has high speed internet backbone, highly Educated Graduates in abundance, IT environment, Vibrant Stock Exchange, International and Indian Banks, Security & Safety, and Cheapest Space in India!

• That’s why Baroda Knowledge City….

Dr R Khajuria TEAM 8

Baroda K-City to house

• Companies / Firms / SMEs in -• BPO (Business Process Outsourcing)• Information Technology• Software• Hardware, Software Embedded Hardware• Multimedia, Graphics, Animation• Banking & Finance• Advertising, Marketing and Publishing• Training and Consulting

Dr R Khajuria TEAM 9

Baroda K-City Project

• 50 - 100 Acres Land proposed (Viability based)• ½ Acre Plot x 100 - 200 Plots• 5 - 10 Towers• Phase I: 100,000 Sq ft Construction

– 1,000 to 20,000 Sq ft Modular Office Space

• Phase II: 100,000 Sq ft Construction• Phase III: 100,000 Sq ft Construction• Open Developed and Fibre Optic wired Plots

Dr R Khajuria TEAM 10

Technology Infrastructure

• SEZ (Special Economic Zone) Status• Internet backbone Tower with Satellite connectivity

for direct Software Export & Communication• Wi-Fi Technology or Wireless Fidelity connectivity

– Voice & Data transfer rate @ 11 Mbps (802.11b) and 54 Mbps (802.11a). More to come

• PC Ready Air-conditioned Floors or Buildings for Large Software Exporters and BPO / KPOs

• SME Tower: PC Ready A.C. Offices for Software/BPO SMEs

Dr R Khajuria TEAM 11

Knowledge Infrastructure• Wired Developed Plots for Multinationals to construct

buildings as per their design and needs• IT Forum Vadodara• Institute of Software Management & Training• Institute of BPO Management & Training• Institute of Knowledge Management & Training• Institute of Consulting Management & Training• 3 / 4 / 5 Star Hotels with Health Spa• Service Apartments, Bachelors Hostel• Indoor and Outdoor Sports & Entertainment

Dr R Khajuria TEAM 12

Basic Infrastructure

• Green Projects (No Pollution)• Recreation and Health Clubs, Swimming Pools• Landscaped Gardens with Fountains• 24/365 Power from GEB / Wind Farm / Gas• Clean Water / RO System• Several Hardware Suppliers, Transport• Banks with Finance and ATMs• Full Security and Safety• Access to Airport, Rail, Roads in 20 minute

Dr R Khajuria TEAM 13

SEZ Benefits: Imagine!

• A designated duty free enclave, treated as foreign territory for trade operations and duties and tariffs.

• 100% Tax-free Import, Export, Excise Duty and Sales Tax (Norms)

• 100% Income Tax Free to all Units in SEZ for 5 years, 50% free for next 5 years on Reinvestment of Profits

• 100% Foreign Investment permitted• No Licence Required for manufacturing

Dr R Khajuria TEAM 14

Knowledge City Project Cost

(Rs Crore) Phase I. Total 3 Phases

• Land & Roads 100 Acres 04.00 14.00

• Buildings 100,000 Sq ft 20.00 60.00

• Equipment & Electrification 04.00 12.00

• Internet Backbone & Wi-Fi 01.00 04.00

• Misc Assets & Fees 01.00 10.00

• TOTAL Project Cost Phase-I 30.00

• Phase II and III 70.00 100.00

Dr R Khajuria TEAM 15

Sources of Finance (Rs Crore) Phase I

• Equity Capital: BRG @ 75% 07.50• Associates / NRIs @ 25% 02.50• Total Equity Capital @ 33.33% 10.00• Capital Subsidy: Govt of Gujarat 05.00• Term Loan from Bank @ 50%/66.67% 15.00• TOTAL Project Cost Phase I (100%) 30.00

• Funds for Phase II and III shall be raised from suitable Debt/Equity leverage

Dr R Khajuria TEAM 16

Funds & Permissions

• Bank Loan for Rs 20 Crore (Including Subsidy)• Application to Chief Secretary and • Secretary Science & Technology of State• State Govt commitment and Subsidy• Clearance by State Government• State Govt forwards to Department of Commerce,

Govt of India• Notification issued as SEZ by Central Government• Single Point Clearance to all Units coming to SEZ

Dr R Khajuria TEAM 17

Promoters• Sargam Infrastructure Pvt Ltd - SPV to implement

project– BRG Group of Baroda – Promoters of Educational Institutions and Real Estate– Bakulesh Gupta & Associates @ 75% Equity– Associates / NRIs @ 25% Equity proposed

• International Investors will be invited in Phase II• High level Professional Team to advise,

implement, market and manage Knowledge City• Baroda Knowledge City Pvt Ltd to maintain

Dr R Khajuria TEAM 18

Invitee Companies• Telecom Sector

– TATA Indicom– Reliance Infocom– BSNL– British Telecom (BT) UK– Airtel, Hutch (Essar), SingTel Singapore,

• Software Sector– L & T Design Services– TATA Consultancy Services (TCS)– Wipro, Infosys– Technosoft (Baroda/Mumbai/UK/USA)– Gujarat-based 500 Software companies

Dr R Khajuria TEAM 19

Invitee Companies• BPO Sector

– Doshi Accounting Services, Baroda (subsidiary of London UK firm of Chartered Accountants)

– ProGen / Infosys– Mphasis– IBM Consulting– Gujarati / NRI firms from India and UK, Europe, USA,

Singapore, Australia, Middle East and Africa– Foreign Software / BPO / KPO firms

• Film Software– Animation, Computer Aided Design (CAD), Graphics

Dr R Khajuria TEAM 20

Invitee Companies• Banking Sector BPOs

– HSBC / Citibank / Standard Charted Bank– ICICI / HDFC / Private Banks– State Bank of India / BoB / Public Sector Banks– NBFCs (Non Banking Finance Companies) and smaller Banks

• Consulting Firms– Payroll, Accounting, Medical Transcription, Finance

• Advertising, Marketing and Publishing Houses• Technical Software and CAD• Hardware manufacturers and maintenance

Dr R Khajuria TEAM 21

Target Countries• India: Gujarat, Mumbai, Pune, Bangalore,

Chennai, Hyderabad• USA: Silicon Valley, New York, other cities • Europe: UK, Germany, France – 25 Countries• Singapore • Australia • Malaysia • Japan • Africa?

Dr R Khajuria TEAM 22

Development Strategies• Make Baroda a Happening Place like Inox

– E.g. RC Dutt Road for only walking @ 7-11 PM like a European city

• Set up large scale Training Centres in Baroda to create BPO trained Manpower– TPT, MSU, IT Forum and Private Sector have started– Other University cities of Gujarat should replicate– Educational Programs to start in BPO Operations &

Management

• Announce a big project with a big bang!– This will attract large players from India, abroad

Dr R Khajuria TEAM 23

Development Strategies• Pre-feasibility Study & Report

– Location selection– Prima-facie opinion of State Government

• Detailed Techno-economic Feasibility Study• Fund / Loan Raising on competitive terms• Office, Team formation, Design • Marketing, Tie-ups, Brochure, Website• Development & Construction of Phase I• Time is critical: 1+5+12=18 Months for Phase I

– 3 Years permitted

Dr R Khajuria TEAM 24

Knowledge Partners

TEAMPro Limited, LondonDr Rajesh Khajuria, DirectorEmail: rajesh@teampro.org

Web: www.TeamPro.orgVadodara T: 94260 75402

London T: +44-20-8866 4345 (Sunil Vaghani)

Building Knowledge Bridge©