Analysis of Exports of Project Overseas

8/3/2019 Analysis of Exports of Project Overseas

http://slidepdf.com/reader/full/analysis-of-exports-of-project-overseas 1/33

ANALYSIS OF EXPORTS OFPROJECT OVERSEAS

PRESENTED BY:

Sumit Malik

Vishal Gohan



PROJECT EXPORTS

Project exports from India commenced with a modestbeginning in the late 1970s. Since then, project exports haveevolved over the years, with Indian companies demonstratingcapabilities and expertise spanning a wide range of sectors.The nature of project exports being undertaken reflects thetechnological maturity and industrial capabilities in the country.

Project exports are broadly divided into four categories :

Civil construction

Turnkey modules Consultancy services

Supplies, primarily of capital goods and industrialmanufactures



Civil Construction Projects:

Construction projects involve civil works, steel structural work,erection of utility equipment and include projects for buildingdams, bridges, airports, railway lines, roads, apartments, officecomplexes, hospitals, hotels, and desalination plants.

Turnkey Projects:

Turnkey projects involve supply of equipment along withrelated services and cover activities from the conception stageto the commissioning of a project. Typical examples of turnkey

projects are : supply, erection and commissioning of boilers,power plants, transmission lines, sub-stations, plants formanufacture of cement, sugar, textiles and chemicals.



Consultancy Services:Services contracts, involving provision of know-how, skills,

personnel and training are categorised as consultancyprojects. Typical examples of services contracts are : projectimplementation services, management contracts for industrialplants hospitals, hotels, oil exploration, charter hire of rigs andlocomotives, supervision of erection of plants, CAD/CAM

solutions in software exports, finance and accounting systems.

Supply Contracts:Supply contracts involve primarily export of capital goods andindustrial manufactures. Typical examples of supply contractsare : supply of stainless steel slabs and ferro-chromemanufacturing equipments, diesel generators, pumps andcompressors.



In the present context of liberalization and globalisation, newstrategic initiatives have been taken to promote project exports, sincethey carry the following essential advantages :

I. Project exports employ minimum domestic resources.

II. Support funding provided by the banking system is of self-liquidating nature over a period of time.

III. Project exports provide employment opportunities to trained/skilledmanpower as well as help in the absorption of state-of-the-artconstruction technology available in the world.

IV. Project exports tend to create opportunities for generating demandfor other Indian construction and engineering products and thusgiving a fillip to other ancillary industries also.



PROJECT EXPORTS PERFORMANCE:

Project Exports, in essence, connotes setting up of projectsoverseas as construction and/or engineering projects. It doesalso involve the export of engineering consultancy or otherengineering services / goods complement as desired by theproject owner.

Most of the overseas projects are contracted, in dollars, andlarge engineering contractors who have been operatingoverseas for quite some time have learnt the mechanism ofnecessary safeguards against fluctuations in dollars.

A decade in the history of Indian Project Exports has just goneby - in which Indian engineering contractors and consultantshave not only established an impressive array of clientele indiverse fields of operation across the globe but have alsocovered almost all sectors of civil engineering and industrialprojects, most multilaterally funded and involved internationalcompetitive bidding procedure.



In other words, as we take a closer look at past years of project exports andin the face of the fact that project possibilities and commitments (in terms ofcapacity utilization) at home have been increasing and rather more lucrative,the project exports have substantially increased which can be perused from

the following table:

270367

494

714

833

1036

0

200

400

600

800

1000

1200

2006 2007 2008 2009 2010 2011

Contract Value( inRs. bn)



TREND OF PROJECT EXPORTS

2006 2007 2008 2009 2010 2011

175 176

202

222234

259

39 35 35 39 41 4342 45 42 45 4653

Project Export Contracts Countries Indian Companies



REGION WISE ANALYSIS



GLOBAL PRESENCE OF INDIAN PROJECT

EXPORTERS

Indian project exporters taking advantages of the significant

opportunities to tap the immense potential for project exportsenhanced their presence in markets worldwide including South EastAsia and SAARC countries, CIS countries, Africa and Latin Americabesides the Middle East.



The Project export Contracts cover construction, turnkey andconsultancy contracts covering various sectors including:

pharmaceuticals, home furnishings,

readymade garments,

construction,

paper & paper products,

textiles & garments, chemicals & dyes,

Computer software & IT,

engineering goods,

natural resources (coal & forests),

metal & metal processing and agriculture & agro-based products.



As on March 31, 2006, 175 project export contracts valued at Rs. 269.5 bnwere under execution in 39 countries by 42 Indian Companies.



As on March 31, 2007, 176 project export contracts valued at Rs. 367.4billion were under execution in 35 countries by 45 Indian Companies.












As on March 31, 2011, 259 project export contracts valued at Rs 1,036 bnwere under execution in 43 countries by 53 Indian Companies.



COUNTRY WISE ANALYSIS



YEAR ENDING MARCH 2011

Some major turnkey contracts secured during the year include:

Sri Lanka :a contract for supply, erection and commissioning of a 30 MLD(million litres a day) water treatment plant and distribution to 9 reservoirs acrossDambula region;

Qatar :a contract secured for design, engineering, supply, construction, testing

and commissioning of the Doha South sewerage treatment works & expansionproject;

Sudan: a contract secured for design, manufacturing, supply, erection andcommissioning of sugar process house equipments & machineries withassociated auxiliaries;

Australia :contract for design, supply, fabrication, assembly, welding, testing andpainting of a Propane Refrigerant Storage Sphere and,

Kazakhstan :a contract for electricity transmission rehabilitation project, Phase IIfor 500 kv substations at Akmolinskie, Severnye and Sarbaiskie.



Libya :Construction contracts include a contract forconstruction and sale of two mobile offshore drilling rigs

Singapore: a contract for design and construction of 3,600housing units and related infrastructure facilities;

Jordan :A contract for construction of new phosphate rockterminal in South Port of Aqaba;

Oman :A contract for design and construction of SalalahInternational Airport;

Thailand :A contract for engineering, procurement, installationand commissioning of a 294 km 42" onshore gas pipeline fromthe Liquefied Natural Gas terminal at Maptaphut IndustrialEstate near Rayong, to a tie-in station on the existing WangNoi to Keeng Khoi pipeline.




Some major turnkey contracts secured during the year included

Qatar :A contract for supply, transportation, civil works, installation,testing and commissioning of 14 new high voltage substations, 9modifications and 5 cable diversion under Qatar Power TransmissionSystem Expansion Phase IX project;

Bhutan : A contract secured for design, manufacture, supply, erection,testing and commissioning of 6 generating units and associatedauxiliaries including electric overhead travelling (EOT) cranes for 1200MW Punatsangchhu-1 Hydroelectric project;

Abu Dhabi :subcontract for design, supply, installation, testing and

maintenance of electro-mechanical works, plumbing and drainage worksunder Central Market Redevelopment Project;

Tunisia : a contract for design, supply, transportation, civil works,erection, testing and commissioning of 400 KV transmission lines.



UAE : a contract secured for supply, erection and commissioning of400 KV overhead line connection from Dahid to new 400/132/133 KVAjman grid station secured from Abu Dhabi Transmission andDispatch Company;

Libya: Construction contracts included a contract for construction of2000 housing units, infrastructure, public utilities and external worksin Wadi Al Mjinene;

Bhutan :A contract for construction of diversion tunnel, dam, intakeand desilting arrangement including hydro mechanical works;

Libya: A contract for engineering procurement, construction andcommissioning (EPC) of infrastructure networks viz. water sewerage-storm, water mains and branch lines, roads and other facilities inZwara area, Tripoli;

Thailand: A contract for detailed engineering procurement,construction and commissioning and other associated works of theplatform compression facilities project.




Some major turnkey contract secured during the year included

Syria :Design, manufacture, supply, civil works, erection andcommissioning of 2x200 mw thermal power plant extension project;mechanical, electrical and plumbing works for 2 hotels in the Kingdom ofBahrain;

New Caledonia :Manufacture, supply and supervision of erection and

commissioning of 2x135 mw boilers and auxiliaries for Koniambo powerproject;

Qatar : Supply, installation and commissioning of 32 high voltagesubstations and modifications and cable works for 19 high voltagesubstations;

Egypt :Supply, erection and commissioning of 500 kv double circuitoverhead transmission line;

Libya: Construction of 2000 housing units, service buildings and relatedinfrastructure



Saudi Arabia :supply, erection and commissioning of 172 kms 400 kvoverhead transmission lines in Kuwait; and design, engineering, supply,commissioning of urea granulator ammonia abatement project for

fertilizer plant.

Qatar : Construction contracts included engineering, procurement,installation and commissioning for Strategic Gas Transmission projectwith 36 inch twin gas pipeline including high tension electrical works;construction of double track railway line;

Libya : two contracts for engineering, procurement, installation andcommissioning of water-sewerage storm water mains and branch lines,roads;

UAE: contract for construction of a luxury residential tower in Dubai;

Afghanistan:Construction of Afghan Parliament building and IndianChancery building consisting of civil works, internal and externalelectrical works, HVAC, lifts, fire fighting systems and addressablesystem at Kabul,



YEAR ENDING MARCH 2008Some major turnkey contracts secured during the year included

Qatar : (i) design, engineering and supply of 66 kv substations for apower transmission system expansion phase project,

(ii) supply and installation of 2x157 MW gas turbine based powerproject extension in Libya, supply, installation, testing andcommissioning of mechanical, electrical and plumbing works for a

residential project.(iii) construction of fuel supply systems for the new DohaInternational Airport, construction / erection of electromechanical &civil structural steel works and commissioning assistance for acement plant.

Iraq :supply & installation of 4x126 MW gas turbine power plantproject.

UAE :Construction contracts included design, construction, testing,commissioning and maintenance of an electrified double track inMalaysia, construction of 295 Residential Villas,





Qatar : high voltage sub-stations along withmodification and cabling work for existing sub-

stations and two well head platform decks withassociated piping and equipment;

Saudi Arabia : methanol and carbon monoxide

plants;

USA : a transmission line contract.




Some major turnkey contracts secured during the year included

Sudan :500 MW steam based power plant and 2000 TPD cement plant;378 MW gas turbine based power plants in Oman;

Qatar :Substations projects;

Malaysia :Lubricant base oil plant;

Algeria : High voltage transmission line projects,

Afghanistan and Ethiopia :Distribution network projects;

UAE: electro-mechanical and plumbing works for commercialcomplexes;

Guyana : Construction of a cricket stadium,



Mozambique : Plant for manufacture of concrete sleepers;

Australia:LPG bullets for a nickel mine and processing plant;

USA: Supply and installation of reactors and separators for a refineryproject;

UK : Supply and installation of thick wall stainless steel vessels for a refineryproject in UK.

UAE : Construction contracts included construction of buildings and

commercial complexes ,

Afghanistan : Reconstruction of roads and alteration and refurbishment ofthe British Council building.

Bangladesh :construction of the Canadian Chancery.



COUNTRY WISE CONTRACTS



SECTOR WISE CONTRACTS



REFERENCES:

http://www.eximbankindia.com

http://www.projectexports.com/

http://www.infodriveindia.com/export-import/trade-statistics.aspx

http://eepcindia.org/download/exe-summary-startegy-paper.pdf

http://www.eximbankindia.com/



















http://www.eximbankindia.com/



THANK YOU

Analysis of Exports of Project Overseas

Documents