manufacturing.pdf

Project No.

Project Title Page Nos

Ma 1

Establishment of Testing and Common facilities Centre for Ceramic Industry in Bikaner

1 - 15

Ma 2 Setting up of an International Trade Centre at Jaipur

1 - 18

Ma 3 Recycling of Marble Slurry at Udaipur

1 - 12

Ma 4 Industrial Water Supply in Bhilwara and Setting-up Common Effluent Treatment Plant at Bhilwara

1 – 12

Ma 5

Integrated Utility Management of Bhiwadi

1 – 14

Ma 6 Industrial Water Supply in Jaipur 1-15 Additional Project Ideas – Brief Description*

Ma 7 Development of Rewari-Bhiwadi Rail Link 1-6 Ma 8 Jaisalmer-Sanu Railway Line 1-4 Ma 9 Development of Filmcity in Rajasthan 1-5 Ma10 Gas Link for Bhiwadi 1-5

* Based on final round of discussions with government department and key stakeholders

Table of Contents Volume IV, KD4

Key Deliverable 4 (Volume IV) September 2003

Rajasthan Infrastructure Agenda “2025”

Project Profiles - Manufacturing

V I S I O N

2 0 2 5


Initial Screening Report for Establishment of Testing and Common facilities Centre for

Ceramic Industry in Bikaner

Ma - 1

Page 1Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry

Top Sheet for ISR: Establishment of testing and common facilities centre for ceramic industry in Bikaner

Title Description Background There are over 110 ceramic-based units in Bikaner. The

availability of good quality clay coupled with locally available craftsmanship gives an opportunity for Bikaner to emerge as an important cluster for ceramics in the country. One of the major reasons for the lack of development of ceramic industry in this region is the absence of any testing and design facility for adopting new technologies. Samples have to be sent to Khurja or Calcutta for testing.

The Project The proposal is to establish a product testing and common facilities centre in Bikaner, which would help the local ceramic industry. Such a facility would help the ceramic industry in meeting the customer standards and requirements at affordable cost.

Project Objectives and Scope

The basic objective of the project is to establish a testing and common facilities centre at Bikaner, which would directly help the ceramic industry, as a facility of this nature does not exist in the region. The product testing and common facilities centre would be used for carrying out various types test on ceramic products. It would provide a channel for accessing cost-effective production and firing technology for ceramics.

Project Demand Drivers

The total turnover of the ceramic industry in Bikaner region is estimated to be Rs. 70 crore per annum. Rajasthan accounts for 25% of the production of sanitary ware and electric insulators.

Project cost estimate

The total cost of the project is estimated to be Rs. 249.32 lakh

Annual revenue streams and revenue sources

The possible revenue streams include testing of products, product certification for exports, raw material testing, retrofitting of kilns and training. Annual revenue estimated is Rs. 38.04 lakh in the first year. Revenues could grow at about 10% per annum

Operating expenses

Total operating cost of the facility is estimated to be Rs. 47.33 lakh per annum. Major cost is the interest cost which would be about Rs. 18.65 lakh.

Project Risk Assessment

Demand for the facility in the region is major risk. Technology transfer related to kilns

Project Viability

The project would not be feasible under BOT. However, if part of the capital cost is met (say 70%) from support from the Government, it would be feasible to meet the O&M expenditure from use charges. Government support would be needed to implement the project

Project Implementation structure

Through partial equity stake from the industry association in Bikaner, and through funding support from GoI’s ASIDE programme, the project could be sustainably implemented.



1. Project Concept

Bikaner is one of the desert districts situated in the North-West of

Rajasthan. Certain parts of the districts such as Kolayat, Nokha,

Dulmera and Lunkaransar have large mineral deposits consisting of

white clay, gypsum, lignite, etc. The annual volume of white clay

mined in the region is about 8 lakh Metric Ton (MT). Rajasthan is a

leading producer of clay accounting for 40% of India’s production. The

quality of clay found in Rajasthan is superior to those found in other

parts of the country and is used in the manufacturing of ceramic

products.

The availability of white clay has led to the development of pottery

units as well as ceramic industry in the region. Despite being a raw

material rich region, the ceramic industry in still largely

underdeveloped in this region. The large consumption centers for

white clay outside the state include Khurja in Uttar Pradesh and Morbi

in Gujarat and most of the raw material is transported to units in these

two states.

One of the major reasons for lack of development of ceramic industry

in this region is the absence of any testing and design facility for

adopting new technologies. In the absence of testing facilities, ceramic

units in Bikaner have to send samples for testing to Central Glass and

Ceramic Research Institute (CGCRI) in Khurja or Calcutta.

Apart from the ceramic industry, clay is extensively used in pottery.

Blue Pottery from Rajasthan has good demand both in India as well as

abroad. Pottery also provides employment to thousands of small

artisans in the district. However, lack of access to energy efficient and

cost effective technologies has restricted the income earning potential

of such artisans.



The availability of good quality clay coupled with locally available

craftsmanship gives an opportunity for Bikaner to emerge an important

cluster for ceramics in the country. Globally, similar clusters for

ceramic exist in Sassuolo, Italy and Lampang and Saraburi in

Thailand. The Sassuolo cluster consisting of about 200 units accounts

for almost 40% of the global output. Sassuolo has been able to

develop as a world class cluster due to a combination of factors such

as availability of raw material, quality of craftsmanship, product design

facilities, testing centers, equipment designing and manufacturing

units.

Establishment of a product testing and common facilities center in

Bikaner would help the local ceramic industry. Such a facility would

help the ceramic industry in meeting the customer standards and

requirements at affordable cost. This center would also help the local

pottery and ceramic industry to develop new designs that are in

demand and adopt cost effective technologies.

2. Project Beneficiaries.

Establishment of product testing and common facilities center in

Bikaner would directly help the ceramic industry in improving its cost

competitiveness. There are over 110 ceramic based units in Bikaner.

The table shown below gives the number of units engaged in the

ceramic industry in Bikaner.

S.No Type of Industry Number of Units

1 Plaster of Paris 57

2 Glaze wall tiles, sanitary wares and

pipes

26

3 Clay Grinding 22

4 Insulators 6

Source: District Industries Centre, Bikaner



According to estimates, the industry provides direct as well as indirect

employment to approximately 10,000 workers. A large number of the

workers are involved in clay grinding units that provide the raw

material for ceramic industry. Loss of competitiveness of ceramic

industry could result in loss of jobs for those employed in the industry.

Apart from the ceramic industry, thousands of artisans are employed

in the pottery industry. These artisans work on behalf of merchant

exports or traders and therefore, are seldom able to realize good price

for their products. Establishment of a common facilities center would

give these artisans a channel for accessing cost effective production

and firing technology for ceramics.

The benefits that would accrue due to the establishment of product

testing and common facilities center are as follows:

• Conducting various types of test on ceramic products. This will

result in time and cost savings for the ceramic industry.

• Propagating new product designs and specifications. This would

directly help in developing the ceramic artware industry in Bikaner

and help the local artisans in designing products as per customer

requirements.

• Reduction in energy consumption. A report by Tata Energy

Research Institute (TERI) on the Khurja pottery industry has

identified that modifying the design of kilns could improve the

energy efficiency of kilns by 2-5 times.

• Reduction in rejection rate. A post improvement study conducting

in Lampang Industry cluster in Thailand revealed that use of

energy efficient and ceramic fibre lined kilns reduced the rejection

rate by more than 50% and also resulted in uniform baking of the

ceramic products.



3. Demand.

India’s share in global ceramic exports is less than 1% with most of

the exports occurring from Khurja and Morbi. The destination

countries for different segments of the ceramic industry are as follows:

• Potteryware : USA, UK and Western Europe

• Sanitary ware and tiles : Africa, South Asia

• Electric insulators: Africa and Asia

Despite a strong tradition for artware, export of ceramics from India is

low due lack of consciousness on quality, use of outdated technology,

lack of marketing effort, etc.

In India, the ceramic industry has witnessed fast growth in demand

primarily due to growth in construction and housing sector. This has

led to burgeoning demand for sanitary ware, floor and wall tiles.

Ongoing reforms in the power sector and expansion of distribution of

infrastructure has resulted in demand for insulators, especially High

Tension Insulators (for 33kv and above). This is likely to represent a

captive market and expected to grow steadily for at least 5-10 years

as more and more states get into power sector reform. It is

compulsory to test electrical equipment such as HT insulators and

units in Bikaner have to get their samples tested from outside the

state. Further, getting the samples tested from outside the state takes

at least a month to complete the whole process.

While no reliable data is available on the value of output of the

ceramic industry in Bikaner, it is estimated that the total turnover of the

industry is about Rs. 70 crore per annum. Based on discussions with

industry association, the product wise break-up of the industry is given

below:

• HT insulators – 35%

• Tiles and sanitary ware (including pipes) – 40%

• Clay grinding and powdering units – 25%



It is estimated that Rajasthan accounts for 25% of the production of

sanitary ware and electric insulators. It also underscores the fact that

Rajasthan and especially Bikaner have a strategic advantage in terms

of raw material and local craftsmanship. The ceramic industry in

Bikaner consists of small-scale units with investment ranging between

Rs. 5 lakh to Rs. 2 crore. The annual output of the industry is

estimated to be about Rs. 70-80 crore per annum. Given the small-

scale nature of the units in Bikaner most of them act as intermediate

goods manufacturers. The insulator segment consisting of only 5% of

the number of units accounts for almost 40% of the industry output.

Bikaner could emerge as a cluster for electrical products such as HT

insulators. Morbi in Gujarat has established a niche for itself in

sanitary ware and sanitary tile segment and consists of over 500 units.

Similarly, Khurja has established a niche in bone china, crockery, etc.

Bikaner. There is definitely potential for development of Bikaner as a

cluster for ceramics due to the inherent advantages.

Units also send the raw materials for component testing to ensure that

the clay is suitable for moulding as per customer requirements.

Sanitary ware, tiles and insulator manufacturing units would use this

facility.

Ceramic handicraft and artware is an industry segment that has good

potential. Pottery is a traditional occupation in this region and

combined with skilled craftsmanship, new designs of ceramic

handicraft could be produced. Dissemination of knowledge about new

product designs and adoption of energy efficient technology for kilns

could reduce the cost of production and help in making the products

competitive in domestic and international market.



4. Project Description and Cost Estimates.

The project involves establishment of a product testing center for

ceramics. The testing facility should be approved and recognised by

CGCRI. The key functions of the testing center would include:

• Testing of clay, surface finishing, and temperature resistance test.

• Testing of electrical equipment such as High Tension Insulators.

• Certification of quality and inputs, particularly in case of exports of

products such as sanitary ware and tiles

• Research and development on modifying internationally developed

production processes for adoption by local industries

An indicative list of the testing facilities required for establishment of

the testing center is given below:

S.No Equipment/ Facilities Required 1 Chemical and mineralogical analysis of silicate minerals

2 Testing bulk density, specific gravity, hardness, viscosity and

particle size analysis

3 Testing plasticity, green shrinkage, fired shrinkage and

vitrification behaviour, porosity, water absorption and Crazing

test

4 X-ray diffraction and study of microstructure

5 Facilities for processing and shaping like crushing, grading,

blending dewatering, palletizing, vacuum extrusion, Isostatic

pressing

6 Kiln for firing upto 1700 degree under normal and controlled

atmosphere

7 Test of reactivity with acids and bases and staining and

scratch resistance

8 High voltage testing for insulators as per IS standards

9 Mechanical strength testing for insulators



A common production center should also be set-up with energy

efficient kilns of different capacities. The activities of this production

center would be as follows:

• Disseminate technologies developed in other ceramic industry

clusters in India as well as abroad to local entrepreneurs (for

example use of ceramic lined kilns).

• Modification of new technologies to suit local conditions and raw

materials

• Organising trial and demonstration projects for the industry

• Providing technical advisory services to the industry

The production center would also conduct training programmes for

local artisans, especially in pottery and ceramic art ware. These could

be conducted through faculty from institutions such as CGCRI.

While detailed technical studies would be necessary in order to arrive

at cost figures and investment requirements, an estimate of the same

has been provided based on discussions with the local industry

association in Bikaner. A break-up of the cost is presented below:

S.No Equipment/ Facilities Required Cost 1 Testing facilities for Ceramics Rs. 100 lakh

2 Common production center and kilns of

capacities between 1 cubic metre to 5

cubic metre

Rs. 80 lakh

3 Common infrastructure such as Land and

building

Rs. 35 lakh

4 Library facilities Rs.10 lakh

5 Technology transfer and advisory

services

Rs. 15 lakh

6 Interest During Construction (IDC) 9.32 lakh

Total cost Rs. 249.32 lakh



The assumption taken in calculating the project cost are as follows:

• Cost of testing facilities, common production center, common

infrastructure, library and technology transfer have been taken

after discussions with industry association in Bikaner

• A Debt/ Equity ratio of 70:30 has been assumed for the project.

• The construction period has been assumed to be one year.

The capital cost has been arrived at based on discussions with the

local industries association. Similar estimates were arrived at a

meeting held in Bikaner which included experts from CGCRI.

The recurring costs for operating this facility are presented below:

S.No Expenses item Amount 1 Staff cost Rs. 5.75 lakh

2 Operation of testing lab Rs. 11.92 lakh

3 Operation of kilns Rs. 8 lakh

4 Other expenses Rs. 3 lakh

5 Interest cost Rs. 18.65 lakh

Total operating cost Rs. 47.33 lakh

The assumptions taken in calculating the operating costs are as

follows:

• Staff cost of 7 resources consisting of 2 ceramic engineers, 1

supervisor and 4 skilled operators has been considered. Staff cost

assumed to increase at 5% per annum

• Operating cost of the lab has been assumed to be 80% of the fee

charged for such services. This has been explained in the section

on revenue assessment

• Operation of kilns has been assumed at a fixed cost of Rs. 8 lakh

per annum. This includes cost of raw material and power. This has

been assumed to increase at 5% per annum.



• Interest cost has been calculated at 13% on outstanding balance

during the year

• Other expenses including training cost has been taken at Rs. 3

lakh per annum and expected to increase at 5% per annum.

5. Project Economics.

The possible revenue streams associated with this project are

presented below:

• Testing of products

• Product certification for exports

• Raw material testing

• Retrofitting of kilns and advisory services for kilns

• Training

An assessment of revenue potential under each of the sources is indicated below: S.No Revenue item Amount 1 Testing of electrical products Rs. 12 lakh

2 Testing of other products Rs. 2.9 lakh

3 Certification for export purposes Rs. 10.6 lakh

4 Raw material testing Rs. 2 lakh

5 Advisory services for retrofitting

and setting-up of kilns

Rs. 9.54 lakh

6 Training Rs. 1 lakh

Total operating income Rs. 38.04 lakh

Although the first year revenue is lower than the first year

expenses, the scenario changes in the subsequent years due

to higher rate of growth of revenue. Since largest item of

expenditure is interest cost, reducing the cost of borrowing

through concessional loans or grants would make the project

financially sustainable as an O&M project.



The assumptions taken in calculating the revenue stream are as follows: • The cost of testing of electrical equipment is estimated to be 0.5%

of the sale value. This has been assumed to increase at 10% per

annum given the growth of power sector in the country

• In case of other products such as tiles and sanitary ware it has

been assumed that only 20% of the output or orders would

necessitate testing. This is based on the existing trend of testing

for such products. This revenue segment has been assumed to

grow at 6% per annum. In the absence of sectoral growth rate, the

rate of growth projected for manufacturing sector in KD1 has been

used.

• It has been assumed that about 20% of the output from Bikaner

could be exported. This excludes the output of clay grinding units

that is used as a raw material. In case of Lampang more than 50%

of the output is exported annually. It has been assumed that the

fee for product certification for exports ranges between 0.5-1% of

the export value. It has been taken at 0.75%. Exports have been

assumed to grow at 10% per annum since there is potential for

ceramic artware, which is almost non-existent currently.

• Raw material testing has been assumed to generate a lumpsum of

Rs. 2 lakh per annum and expected to grow at 6%.

• Retrofitting of kilns and related advisory could generate about Rs.

9.54 lakh per annum. Similar projects undertaken in Lampang

resulted in cost reduction of about 40-50% due to dramatic fall in

rejection rate and improvement in energy efficiency by a factor

ranging between 2 to 5 times. Within two years more than 200

ceramic lined kilns were set-up in Lampang. It has been assumed

that 0.5% of the reduction on cost could be recovered as fee for

advisory. Revenue from this source is assumed to increase by

15% per annum, since there is huge potential, given the existing

technology.



• Training fee has been assumed at Rs. 1 lakh and expected to

grow at 6% per annum.

In analysing the project as a pure Build Operate Transfer (BOT)

project, the project has a negative IRR of (7%) for the private investor

over 10 years. Clearly the project is unviable under BOT framework

from a private sector point of view.

However, if upto 70% of the capital cost could be met of grants from

Central Government, State government, or institutions such as

UNIDO, etc., the project exhibits a positive IRR of 17% over 10 years

and could start generated surplus from 1st year itself. Thus, it is

possible to award the project to private sector as an O&M /

management contract.

6. Suggested Project Structure

As indicated in the project economics, the capital cost towards the

project would have to be borne by the Government. However, is

possible to reduce the project cost by considering the following

options:

• Land and basic building infrastructure is available under

Rajasthan Woolen Mills compound in Bikaner. This facility is

currently non-operation and could be utilised for the testing

centre. This would reduced the land and building cost by about

Rs. 20 Lakh. The land is current with the State Government.

• The detailed study for the project could be included in the

cluster development report currently being prepared by the

Indian Institute of Craft and Design, which has been retained

by RIICO. This in turn would reduce the project cost by Rs. 15

lakh, equivalent to the cost of conducting feasibility studies

included in the cost of the project.



To meet the capital cost, the State Government could consider

including the project under the GOI scheme for cluster

development scheme, Ministry of Commerce (MoC). The scheme

contains specific mention for creation of common testing facilities.

Since the project also has export potential it could also be taken

up for funding under the ASIDE scheme. For this purpose, a report

should be prepared and sent to the MoC, GoI.

Alternatively, it could also look at United Nations Industrial

Development Organisation (UNIDO) for funding. UNIDO has an

ongoing joint initiative with the Government of India, the Asian and

Pacific Centre for Transfer of Technology (APCTT) and the Small

Industries Development Bank of India (SIDBI). The project titled

Indian Technology Bureau for International Industrial Partnerships

(TBIIP), is an initiative focussed towards technology acquisition

and transfer from advanced countries. TBIIP could also be

approached for part funding and technology transfer for the

project.

With regard to implementation of the project, there are two options.

• Option 1: Award the project as an O&M or management

contract to the private sector. The capital cost should be met

through grants. The BOT operator could be asked to pay a

nominal lease rental for use of the facility.

• Option 2: Award the project under a revenue sharing

arrangement to the local industry association.

While the project has a positive IRR , if it is considered as a purely

management contract, it is unlikely that the project would draw

enthusiastic response from private sector at large. Only entrepreneurs

who have a stake in the ceramic industry and would facilitate from the

project would be willing to take up such a project. It is therefore

suggested that the project be established under co-operative and

revenue sharing arrangement with the local industry (option 2)


http://www.apctt.org/

http://www.sidbi.com/

http://www.tbiip-unido.org/


Under this structure, a project co-ordinator could be identified through

the local industry association who would be responsible for

management of this facility. The ownership of the testing centre

should be vested with the association and the state government could

also have a stake to oversee operations. It would be useful if few large

players in the local ceramic industry come together to operate the

project on a joint venture basis.

A part of the surplus cash flow, say 50% could be transferred to the

government as contribution at the end of each year. It is estimated

that over a 10 year period about Rs. 1.2 crore could accrue to the

government as revenue contribution. This could be utilised by the

government for further investment in the facility or any other purposes

such as market development, holding seminars, buyer seller meets,

etc.

7. Assessment of Project Risks.

The assessment of risks envisaged in the project are given below:

• The project could fail to take off if the technology relating to

ceramic lined kilns cannot be obtained or transferred.

However, this risk is minimal as similar facilities exist across

the world, which have been successful.

• The project could face commercial risk in terms of fall in

revenue if the rate of adoption of the new technologies is lower

than anticipated. This risk is also not seen as critical, since the

demand for the services is acutely felt by the stakeholders and

they are likely to benefit monetarily from such a project.

• No legal or regulatory risks are perceived in the project.

Currently, there are about 110 units in Bikaner. Comments from RIICO

indicate that there would be need for about 250-300 units for the

testing centre to be commercially viable. The financial assessment of



the proposed project also highlights that the centre would not be able

to operate on a BOT basis. There would be need for capital subsidy

and the O&M cost could be met through a private sector contract.

Therefore, there is need to consider this project as an infrastructure

and developmental project rather than as a purely commercial

venture. As highlighted earlier, the project is likely to have several

other benefits and could also contribute towards increasing the size of

the ceramic industry in the area.

8. Conclusion.

Establishment of the testing and common facilities centre for ceramic

units in Bikaner would fulfil an existing infrastructure gap that has

prevented the industry from utilising its full potential. It would also help

in tapping the domestic as well as export market for ceramic artware.

Establishment of the industry would also improve cost

competitiveness of the industry.

The project is unviable under a purely BOT format, but it can be

awarded as an O&M/ management contract to the private sector. The

capital requirement should be met from state government grants,

cluster development scheme of GOI, etc.

In terms of the next steps the following steps should be taken up:

• Conducting a detailed project preparation and feasibility study

to identify the project cost and extent of support required

• Finalising a Memorandum of Understanding with Bikaner

Ceramic Industry Association

• Preparation of proposal for funding under Cluster Development

Scheme

• Initiate discussions with UNIDO, CGCRI, etc. for transfer of

technology and know-how


Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry

Page 16


• Establishment contractual arrangements with Industry

Association, including disbursement and monitoring

mechanism.


Initial Screening Report for

Setting up of an International Trade Centre

at Jaipur

Ma - 2

Page 1Initial Screening Report (Ma – 2) International Trade Centre at Jaipur

Top Sheet for ISR: International Trade Centre Title Description Background The Indian small and cottage sector has seen rapid growth in the

past and is currently a Rs. 30,000 crore plus industry with the handicrafts sector accounting for more than 16% of the cottage sector revenues. The sector provides livelihood to over 60 lakh artisans in the country and has one of the lowest capital to output ratio thereby providing great opportunities for employment, value addition and potential for foreign exchange earning. Currently, marketing efforts of exporters are driven by individual relationships and an India-specific integrated approach is lacking, which can be substantiated from the facts that individual exporters take part in international events and fairs establishing contact with the importers and are increasingly using the internet for establishing new contacts. Thus, there is a need for a specific cottage sector initiative that would attract importers to India and Rajasthan.

The Project An International Trade Mart is proposed in Rajasthan, which can serve as a common, logistically convenient & world-class meeting point for exporters based in Rajasthan and for importers.


The project envisages setting of an International Trade Mart at Jaipur consisting of permanent display showrooms, exhibition area for holding fairs and other events, centrally air-conditioned, warehousing space - for occupants to the extent of around 10% of showroom space, Adequate parking space - cater to peak requirement, multi-cuisine restaurant-cum-bar, common business facilities, secretarial services, trade information - directories, contact addresses, etc and adequate, round-the-clock security.


The demand for an International Trade Mart is based upon the need for a nodal point of interaction between the importers and the exporters in the cottage sector, for creating a logistically convenient point of display for cottage sector export products as the exporters are dispersed across various locations; and to provide an affordable marketing medium to the exporters in the cottage sector; It is estimated that on an average, it costs more than Rs. 2.5 lakh to participate in the two annual handicrafts fairs (which last for only 4 days each) - these exporters find participation in trade fairs a costly affair and want a suitable, permanent alternative.


The project is estimated to cost approximately Rs. 38.85crore

Opportunities for private sector

The project can be undertaken under a public – private partnership basis. As a matter of fact it should only be undertaken under such a partnership for ensuring success.


There is limited demand and implementation risk associated with the project.

Project Viability

The project provides for an IRR of 16% under base case scenario.


To be implemented through a nodal export promotion agency of the state along with government support. Government can provide support to the scheme by looking at implementing the project under ASIDE scheme of GoI



1. Project Concept

The Indian small and cottage sector has seen rapid growth in the past

and is currently a Rs. 30,000 crore plus industry with the handicrafts

sector accounting for more than 16% of the cottage sector revenues.

The sector provides livelihood to over 60 lakh artisans in the country

and has one of the lowest capital to output ratio thereby providing

great opportunities for employment, value addition and potential for

foreign exchange earning.

Exports from India during the last decade have seen phenomenal

growth. The CAGR of exports for the period 1990-91 to 2002-03 from

the country have been increasing at over 19% per annum, during

which the growth of the small and cottage sector represented through

handicrafts has been growing at over 23% per annum resulting in the

fact that the total contribution of handicrafts (excluding carpets and

gems and jewellery) to the total exports of the country has risen from

approximately 2% in 1990-91 to approximately 3.5% in 2002-03.

The various efforts that have catalysed this growth include:

Formation of exporters’ council and world-wide dissemination of

information (membership number increased from 30 in 1986 to

more than 6500 in 2001)

Organisation of buyer-seller meets

Organisation of India Handicrafts & Gifts Fair by Export Promotion

Council for Handicrafts (EPCH)

Participation in international fairs by Indian exporters

Organisation of design development programs by various private

and public agencies

Educating artisans & potential entrepreneurs

Inspite of the above, the share of Indian handicrafts industry in total

world handicrafts imports is estimated at close to 2%. There is a



pressing need to increase this share and assist Indian exporters

penetrate world markets. This need is reflected in identification of

textiles, handicrafts, carpet and gems and jewellery as key sectors of

exports growth in the GoI’s Medium Term Export Strategy (2002 -07).

Currently, marketing efforts of exporters are driven by individual

relationships and an India-specific integrated approach is lacking,

which can be substantiated from the facts that individual exporters

take part in international events and fairs establishing contact with the

importers and are increasingly using the internet for establishing new

contacts. Thus, there is a need for an India specific cottage sector

initiative that would attract importers to India and Rajasthan.

In India, in the recent times, EPCH has initiated a project for the

setting up of an India Exposition Mart (IEM) envisaged as a nodal

point where foreign buyers can meet cottage sector exporters round

the year and where periodic exhibitions and fairs could be organised

The IEM has been conceptualised as a permanent display point for

exporters in the cottage sector, especially handicrafts.

An International Trade Mart is a unique way of bringing together

buyers and sellers from around the world throughout the year and

would fulfil the following key objectives:

new marketing opportunity for exporters- nodal point of contact

thereby reducing the effort involved in establishing contacts

benefit of smaller exporters who find it difficult to participate in

international fairs

promoting Indian cottage sector & artisans by arranging special

events

Sustain the exports of Indian Handicrafts, which have shown

robust growth in the recent past

Rajasthan is one of the key Indian states, which contributes

significantly to the exports of the country especially with respect from



cottage and small scale sector. The importance of Rajasthan can be

best exemplified if one looks at the major concentration areas for

different product categories across the country as presented in the

Exhibit below.

Sl.No. Product Category

Major Concentration Areas

1 Art Metal Moradabad, Sambhal, Aligarh, Jaipur, Jodhpur, Barmer, Delhi, Rewari, Thanjavur, Chennai, Manadeep, Beedar, Jagadhari and Jaisalmer

2 Wooden Artwares Saharanpur, Nagina, Jaipur, Jodhpur, Barmer, Hoshiarpur, Srinagar, Amritsar, Jagdalpur, Bangalore, Mysore, Chennapatna, Chennai, Mandap, Behrampur, Ahmedabad and Rajkot.

3 Handprinted Textiles

Jaipur, Barmer, Bagru, Sanganer, Jodhpur, Bhuj, Farrukahabad and Amroha

4 Ebroidered goods Barmer, Jodhpur, Jaipur, Jaisalmer, Kutch, Ahmedabad, Lucknow, Agra, Amritsar, Kullu, Dharmshala and Srinagar.

5 Marble and Soft Stone Crafts

Agra, Chennai, Bastar and Jodhpur

6 Papier Mache Crafts

Kashmir and Jaipur

7 Terracotta Zari and Zari Goods

Jaipur, Barmer, Chennai, Bastar, Surat, Bareilly, Varanasi, Amritsar and Agra

8 Imitation / Fashion Jewellery

Delhi, Moradabad, Sambhal, Jaipur and Kohima

9 Artistic Leather Goods

Kolhapur, Indore, Barmer and Shanti Nekatan

10 Gems and Jewellry

Surat, Mumbai and Jaipur

11 Carpets Varanasi, Bhadohi, Gopiganj, Khamaria, Ghosia, Madhosingh, Mirzapur, Agra, Shahjahanpur, Srinagar, Baramulla, Jaipur, Bikaner and Tonk

As can be seen different regions across Rajasthan, in particular Jaipur

and Jodhpur contribute significantly to the exports of the handicraft

sector. It is in this background that the an International Trade Mart is

proposed in Rajasthan, which can serve as a common, logistically

convenient & world-class meeting point for exporters based in

Rajasthan and for importers.

The various project components of the proposed International Trade

mart have been discussed across the following five areas, which



based upon our previous studies are considered critical for success of

a facility as the one that is proposed. The factors include:

Location and Facilities

Presence of an anchor activity

Professional Management

Ownership Structure

Nature of the Property

CSF1: Location and Facilities – The International Trade Mart is

proposed to be located in Jaipur on account of the following.

Is the capital of the state and is hub of most trading activity.

Very well linked to Delhi and Mumbai – two main international

gateway in the country

Also well connected through the rest of the state

Is on the itinerary of most international tourist coming to the state

Jaipur airport has been recognised as an international airport

Within Jaipur, it is proposed that the International Trade Mart be set-

up in and around the Sitapur region on account of the following:

Considerable development has and is proposed around this axis of

the city. Various

Is close to the Sanganer Airport

Close to Export Promotion Industrial Park

Proximity to ICD

Availability of all basic infrastructure facilities

On route to Chowkhi Dhani – can help bring tourists, especially

domestic tourist to the showrooms

It is understood that as per the original land use plan prepared by

RIICO for its EPIP at Sitapur an area of approximately 20 acres was

earmarked for setting up of an International Trade and Convention

Centre. Currently, the space is being used as an Exhibition Ground.



In order to decide on facilities at the mart, a comparison has been

made of other successful international trade marts presented in the

Exhibit below. These include Shanghai, Brussels and Dallas

Based on the above and interaction with local stakeholders the

various facilities are proposed. It may be mentioned that the

development of facilities listed below have been segregated into two

phases for ease of implementation and improving overall financial

viability of the project.

Phase I - Essential

Permanent display showrooms, Exhibition area for holding fairs and

other events, Centrally air-conditioned, Warehousing space - for

occupants to the extent of around 10% of showroom space, Adequate

parking space - cater to peak requirement, A multi-cuisine restaurant-

cum-bar, Common business facilities, Secretarial services, Trade

information - directories, contact addresses, etc and Adequate, round-

the-clock security.

Phase II – Desirable, but not considered required immediately

Quality inspection/certification facility, Regular shuttle services from

hotels and airport, Gifts & Flowers shop, Clearing agency and a Hotel.



CSF2: Presence of an anchor activity – In order to promote the

trade mart it would be essential to create a annual event which can be

used to promote the trade mart as also bring a large number of

importers into Rajasthan.

CSF3: Professional Management – Necessary for ensuring

Aggressive international marketing to educate importers - through

international fairs, internet, personalized mailers, contact with trade

commissions, etc.

CSF3: Ownership Structure – Necessary to ensure government be

part-owner in the initial stages of the project as it would ensure

transparent processes in terms of allotment of showrooms and

inculcate a feeling of confidence among exporters that their ‘money is

in safe hands’. Also Government can play a key role in developing,

promoting and marketing the anchor activity.

CSF3: Nature of the Property - Should be developed as a `landmark

property’ with good landscaping. Most showrooms should open

throughout the year - the mart should be `alive’ round the year and

there should be high level of hygiene, cleanliness and maintenance


The main beneficiaries of the proposed International Trade Mart are

the exporters from the State of Rajasthan, specially small and medium

exporters. In the last few years exports from Rajasthan have seen

significant growth as depicted in the exhibit below:



A wide variety of products which include Handicrafts, Carpets, Ready-

made Garments, Textile, Engineering products, Electronics,

Dimensional Stones, Gems & Jewelry etc. are being exported from the

State. The export from the state has increased significantly in the last

few years. The export from the state has reached over Rs. 4500 crore

in the year 2000-01 from Rs. 422 crore in the year 1990-91. Now the

state has started exporting non-traditional items too in a major way.



While the export basket of Rajasthan is quite vast textiles, gems &

Jewellery and handicrafts are the most important constituents,

contributing for over 55% of exports.

Handicrafts have shown tremendous growth, the CAGR of handicraft

exports for the state for the period 1995-96 to 2000 – 01 has been

26%, largest for any product category during the same period. There

is a growing demand, particularly, in the western world, for handicraft

items, representing great cultural heritage of Rajasthan. The

handicraft exports account for approximately 9% of the total export of

the State. There are more than 1000 exporters in the state.

Textiles and Gems and jewellery constitute India's largest export item

and are a labour intensive industry. Jaipur and Jodhpur have emerged

as one of the leading centres in the coloured stones segment of the

gems and jewelry sector. Gems and Jewellery industry is a labour

intensive industry. 1468 small scale units are working in the sector in

the State. Gems and Jewellery account for close to 20% of the total

export of the State. There is a great potential for the export of Gold &

Silver Jewellery from the State because the State is endowed with

high-level skill.

Ready-made garments constitute an important segment of the export

basket of Rajasthan. Jaipur is specially known for its printed garments.

It is estimated that there are over 400 garment manufacturers in

Rajasthan a large number of whom are in Jaipur. A large proportion of

who are engaged in exports. This is clearly reflected in the fact that

out of some 125 participants in the last apparel trade fair in Delhi;

more than 40 were from Rajasthan. It is also estimated that exports of

over Rs.600 crore is done out of Rajasthan. The textile industry in

Rajasthan contributes to about 40% of the country's export of total

synthetic blended yarn.



3. Demand.

The demand for an International Trade Mart is based upon the need:

For a nodal point of interaction between the importers and the

exporters in the cottage sector, whereby all the cottage sector

products are on display at the same place

For creating a logistically convenient point of display for cottage

sector export products as the exporters are dispersed across

various locations; in the current scenario, the importers suffer from

lack of information and are not able to meet and evaluate new

exporters. Moreover, importers incur a lot of time on travelling in

case they decide to go Jaipur or Jodhpur

To provide an affordable marketing medium to the exporters in the

cottage sector; currently, most non-Delhi exporters take up display

space in Delhi on rent in 5-star hotels when the buyers arrive -

some spend as much as Rs. 22,000 for a day on renting display

space

To provide a marketing solution for the small and medium size

exporters who try hard to find new buyers through participation in

trade fairs. It is estimated that on an average, it costs more than

Rs. 2.5 lakh to participate in the two annual handicrafts fairs

(which last for only 4 days each) - these exporters find

participation in trade fairs a costly affair and want a suitable,

permanent alternative.

Perception of the Target Customer – An initial round of discussions

have been held with various trade associations in Jaipur and Jodhpur

including textile, handicrafts, gems and jewellery and carpets to elicit

views of the key stakeholder for the need for an International Trade

Market in Jaipur. The key messages that emerged from these

meetings are summarized below:

There was a general agreement on the need for such a facility

Such a nodal place will house more than 150 showrooms at one

place and will have modern facilities will definitely attract importers



Importers yearn for more options and product ranges - this mart

will provide them the necessary options

The mart should not be a product specific as there is not enough

importers visit to the state for just one category. Thus all

categories of exports such as traditional handicrafts, carpets,

jewelry and readymade garments will be displayed, importers will

be able to make their `range’ and thus will find it very useful. This

in turn, will benefit the exporters

The need for such a facility from exporters of gems was not strong

as it was argued the business model for the same was very

different. In most case the business was generated by visits made

by Indian business overseas as most of the raw material is

imported by the Indian firms and is only cut and polished within the

state.

Importers want to maximize business hours and reduce travel time

during their trips. India Trade mart will be beneficial to them in this

respect

There were divergent views on whether the mart should have

restricted entry i.e. only for importers or for general public also. It

was felt that since there may not be enough business visitors to

Jaipur on a regular basis, it would be cost effective to use the

facility as a permanent display centre for open market sales also

so that the regular maintenance cost of the showrooms can be

recovered.

Strong me-too factor; “if other exporters from my city take up

space in the mart, I should also be there”

A major demand for the trade mart would also be from exporters

not just based out of Jaipur but from cities outside of Jaipur within

the state.

While there was overall approval of the need, there was also some

apprehension raised including:

There are hazards of placing managers/assistants (non-owners) in

charge of the showroom as they might start making their own



There is the apprehension about lack of protection of the sample

designs as they can easily be copied while on display in the mart -

however, exporters intend to display their samples in a manner

that the designs would not be clearly visible from the outside;

moreover, all visitors to the mart would be screened

There was also a view that in case the trade mart is only for

importers, then initially they will open the showrooms only in the

peak seasons of spring and autumn as few importers visit India in

other months - however, this would happen only in the initial

phases and most showrooms will open year-round once the mart

starts attracting regular importers and in case the trade mart is

also developed for regular sale to tourists.

Note: The above views on demand are based upon discussions with a

few trade associations in the state and may or may not be

representative of a wider section of the exporters. As this report is a

preliminary report (detailed primary survey is not part of the scope of

work), the same should be undertaken before finalization of the project

concept.

Target customers of the Mart: The main target segment would be

the exporters of handicrafts, readymade garments, carpets and

jewellery. The target customers, though to a smaller extent, would

also include buying agents and other exporters. Geographical

segmentation shows high concentration of target market exporters in

Jaipur, Jodhpur and Barmer. The number of exporters in these five

three concentration areas exceeds 2500.

Besides the above segments, the buying agents, who act as a link

between importers and exporters and organise to display the samples

to importers. The buying agents would find the mart useful, as the



mart would provide an opportunity for greater interaction with the

importers.

4. Project Components and Cost Estimates.

The trade mart would be divided into two distinct areas- the exhibition

area and the showroom area. The showroom area would house

showrooms that would be owned or rented by individual exporters.

Besides the exhibition and showroom area it is also proposed to

create a food court (on similar lines as Delhi Haat) for attracting

tourists.

It should be noted that the mart occupants would contain distinct

segments including exporters from sectors such as handicrafts, jute,

carpets, apparel, etc. It is proposed that the showrooms be allotted

according to these segments whereby each segment should be clearly

demarcated in terms of sections in the mart

The showrooms complex will also house the support area comprising

of the multi cuisine restaurant, office space, meeting rooms & modular

hall. The ancillary block housing the AC plant and other maintenance

equipment would be separate

It is proposed to utilise the basement of the showrooms complex partly

for warehousing requirements, partly for trucks loading & unloading

and partly for car parking.

An important project component of the trade mart would be a 1500

seat auditorium, necessary for improving the overall financial viability.

The key assumptions under which the project costs have been arrived

are presented below.

Note: These rates are based upon current rates used for awarding

contract for a similar facility at Greater Noida, except the cost of



construction has been reduced by 10% because of availability of

construction material locally. The revenue estimates have been

reduced by 20% with those proposed for the Greater Noida Project to

reflect difference in the category of the city in which these two project

are being undertaken.

Unit Land Cost (10 acres) 670

18000.0012000.0012000.00

7500.00

15.00

5%

25.0050.00

150.00150.00240.00150.00

700.0012.5%15.00

5%

1.0018%

35%

72

12.0%

5%

Rs. /sq.mt.Total Construction costsUnit Cost of EXHIBITION HALL & AUDITORIUM SPACE Rs/sq.mt. Unit Cost of MART BUILDING Rs/sq.mt. Unit Cost of CENTRAL FUNCTION BUILDING Rs/sq.mt. Unit Cost of BASEMENT Rs/sq.mt.Costs for Extenal Land Development & CONTINGENCIESUnit External Development Costs Rs Lacs/AcreTotal External Land Development costs 150.00 Rs. Lacs

Contingencies of Total costOther Capital costs-LumpsumCosts for Vehicles and Machinery Rs. LacsStaff Cost including training Rs. LacsReistration etc. Rs. LacsOperation & Maintenance Rs. LacsAdvertising & Promotion expenses Rs. Lacs

PMC & Other Consultancy Services Rs. Lacs

Operating costsAnnual maintenance costs Rs/sq.mt./yr

Salaries and wages of Total optg costsAnnual Advertising & Promotion expenses for the Base Year Rs. LacsAnnual growth rate in Advertising and promotion expenses per annum

Debt Equity RatioDebt Equity RatioCost of EquityTax ratesTax Rate Term loanTenure of long term loans yearsMoratorium period on term loans yearsRoI on Term loansDepreciationRate of DepreciationTotal Project Cost 3,885.45

Project Cost related Assumptions

Operating cost related Assumptions

Assumptions pertaining to the Financial Strategy

Annual rate of Inflation 6%

50%

10

5000100%2500

720051%

24

900

900

900

PROJECT PHASING BY BY+1% of project completion in each year 50%

Total area of the Theme Park in Acres AcresTotal area of the Mart 40000 sq. mtrs.Exhibition areaTotal built-up EXHIBITION area sq.mt.% of the total Exhibition area to be used for Display of exhibition areaTotal built-up AUDITORIUM area sq.mt.Showroom/Mart areaTotal built-up SHOWROOM area sq.mt.% of Built up SHOWROOM area to sold of showroom areaArea of each SHOWROOM sq.mt.Other areasTotal area of the BASEMENT sq.mt.Total area of CENTRAL FUNCTION BUILDING (Office space/Restaurants/Banquet hall etc) sq.mt.No. of SHOWROOMS 153Area of RESTAURANT/SHOPS etc. sq.mt.

Assumptions pertaining to macro-economy& project phasing

Assumption pertaining to Areas in the Theme Park



Based upon the above the total cost of the project is estimated at

approximately Rs.38.85 crore.

5. Project Economics. The financial analysis of the project has been undertaken to ascertain

whether the project can be implemented under a public private

partnership format and if so under what circumstances. The key

assumptions in the construction of the financial model include:

Exhibition area, Office space etc.Average Exhibition Hall rent Rs./sq. mtr./dayAverage No. of Exhibition days in the first year daysAnnual increase in daily usage of Exhibition halls daysAuditorium SpaceAverage daily rent from auditorium Rs./dayAverage No. of days booked in Auditorium in the first year daysAnnual increase in no. of days booked in auditorium daysShowroom/Mart area% of showrooms sold% of showroom let out on lease rentals 30%Unit Sale Price of a SHOWROOM Rs./sq.ft.Sale value for REGULAR SHOWROOM showroom 12.91 Rs lacsAnnual lease rentals for SHOWROOMS Rs/sq. mt.Recovery schedule from the sale of showrooms BY BY+1Revenue recovery schedule 50%Resaurant/Shop areaAverage Lease Rental for RESTAURANT/SHOPS etc. Rs./sq.mtr./yr.

Assumption pertaining to Sale Prices and other Revenue streams

18016

2

350,0004010

70%

5000

4000.00

50%

4000

Based upon the above, the IRR for the project over a 10 year period

comes to 15.35%. It may be mentioned that the cost of land has been

taken at current rates applicable in Sitapur Industrial Area. In case the

rate of land was to be given to the project on institutional basis, the

viability of the project further improves and the IRR improves to

16.26%. However, in case the land was to be given free of cost, the

viability improves further and the IRR comes to 16.77%.

The average no. of exhibition days have been arrived at assuming 2

shows of 4 days each i.e. one from the existing stone mart and

second from a new “Rajasthan Export Promotion Exhibition”. It may be

noted that space is booked at exhibitions are booked for 2 days before

and two days after the show and accordingly the number of exhibition

days have been assumed at 16 days for the base year.



6. Suggested Project Structure and Government Support Required

The project should be implemented under a public private partnership

with Government of Rajasthan / one of its agencies being a cosponsor

of the project. The salient features of the proposed project structure

include the following:

Project Promoter: The project needs to be promoted through one

principal agency having expertise and interest in export promotion

and trade fair management. Such agencies include ITPO / EPCH/

Federation of Rajasthan Exporters etc.

Government Sponsor: There needs to be Government support to

the project and the same can be done through subscription to

equity by cash / land. Government can also look at raising funds

for the project under the GoI ASIDE programme.

Management Committee: There needs to be a management

committee comprising of exporters who should also be

shareholders to the project so as to ensure participation in the

project and increased chance of success for the concept

Ownership Structure: The project should be implemented by

creating a Special Purpose Vehicle formed for the mart under

Companies Act. The benefit of the same include: Ease in

rewarding investors in the form of dividends; Flexibility in

operations in terms of being able to float subsidiaries or enter into

joint ventures; and Acceptability in the market place as a structure

amenable to participation by foreign investors or domestic

investment institutions

Organization Structure: Given the importance of customer

orientation and marketing outreach; the organization needs to be

responsive to the customers (mart occupants & exhibitors) and be

able to generate interest for the end-users (importers). For the

above reason and the fact that most operations could be handled

through management contracts the organization structure should

be distinct from the ownership structure and should be on



professional basis. This could be best achieved by entering into

long term contracts with exhibition & conference management

companies that have expertise in the above areas and who can

possibly be approached for framing marketing alliances

Government support would be critical in the following areas:

Investing in promoting / developing an annual trade fair exclusively

for export products of Rajasthan a “Rajasthan Export Fair”

Bringing transparency in day to day management of the trade mart

by taking up equity in the project

Combining other initiatives / events promoted by the state such as

Stone Mart.

Raising funds through the Central Assistance to States for

Developing Export Infrastructure and other Allied Activities

(ASIDE). The scheme allows for Equity participation in

infrastructure projects including the setting up of SEZs.

Giving Mandate to one of the agencies of Government of

Rajasthan for the development of the International Trade Mart.

Initiate discussions and enter into a MoU with a principal sponsor

of the project.

Identify and earmark land for developing the International Trade

Mart.

Undertake detailed demand estimation for finalizing space

utilization plan

This project has been one of the top priority ones being considered by

RIICO. As a result a number of steps have already been taken (at the

time of finalisation of this ISR). These steps taken by RIICO include:

Submitting of a proposal for funding this project to the Ministry of

Commerce under the Integrated Infrastructure Upgradation

Scheme

Identification and earmarking of land for developing the ITC. The

India Stone Mart has been organised on this land in 2000 and



2003. The ITC would be attraction for other trade fairs that could

be organised in Jaipur

Detailed study on demand estimation and space utilisation is being

taken up


The various risks that are envisaged in the development of the project

and measures that can be taken to mitigate these risks are highlighted

below:

Demand Risk: While there is low risk for showroom space, there is

considerable demand risk for exhibition space as there are no large

fairs that are currently undertaken in Jaipur. The possibility of some of

the existing shows in Delhi shifting to Jaipur also seems remote in the

short term. In order to mitigate this risk, Government would need to

support development of a Rajasthan specific trade fair. Additionally,

the trade fair can have a modern auditorium which can attract a few

large conferences in a year.

Implementation Risk: In our experience the project cannot be

developed by announcing the concept of the project and bidding out to

a private sector. This project would require identification of a project

promoter and only thereafter can the project concept be finalized.

Government would have to support identification of the project

sponsor.

8. Conclusion. Setting up of a trade mart would help in creating an important

marketing infrastructure for the various export industries in Rajasthan.

Based upon the preliminary study undertaken, the project looks

financially viable. However, implementation of the project would


Initial Screening Report (Ma – 2) International Trade Centre at Jaipur

Page 19


require a number of actions on part of the State Government which

are highlighted in the earlier sections.



Recycling of Marble Slurry at Udaipur

Ma - 3

Page 1Initial Screening Report (Ma – 3) Recycling of Marble Slurry at Udaipur

Top Sheet for ISR: Recycling of Marble Slurry Title Description Background The state of Rajasthan is very rich in mineral deposits and is very

prominent for mineral productions, such as marble, granite,

limestone, gypsum, etc. The major sources of marble are

Makrana, Rajasamund, Udaipur, Kishangarh, Chittorgarh, Jaipur

and Banswara. A large number of marble industries exist in the

district of Udaipur. During dressing and cutting of marble blocks

into slabs and tiles of various sizes, huge amount of marble slurry

is obtained which is dumped at the gang saw unit or on low lying

areas along the road side. On drying, this slurry waste changes

into the form of powder, known as marble dust and creates

severe atmospheric pollution.

The Project The project envisages creation of a business environment which

promotes entrepreneurs to set up units for management of

marble slurry by recycling for making building material.

Project

Objectives

and Scope

The project envisages commercialization of technology for

production of building material from marble slurry at Udaipur. The

scope of the project envisages commissioning of a large unit for

manufacture of building material from marble slurry in the joint

sector with an installed capacity of tonnes per annum.

Project

Demand

Drivers

The demand for the project is primarily two fold. First the need for

effective disposal of marble slurry, an environmental hazard and

secondly the growing demand for building materials driven by

growth in the construction sector.

Project cost The project cost is estimated at approximately Rs.12.65 lacs

Opportunitie

s for private

sector

The project would be in the private sector. However, since this

project is proposed as a demonstration project, it is suggested

that the project be undertaken as a Joint sector Project.

Project Risk

Assessment

The most important risk this project faces is demand risk – which

can be mitigated by providing indirect government support.

Project

Viability

The project is viable if the demand risk is suitably mitigated.

Project

Implementati

on structure

The project can be bid out by the government through a

competitive bidding, wherein the bidding criteria could be the

price at which the private operator would buy back Governments

Equity after a predefined period of time.



1. Project Concept

Rajasthan produces significant quantities of marbles and is the

leading producer of marbles in the country. As a matter of fact it

contributes 90% of the total marble production in the country. The total

marble production in the state during 2001-02 was approximately 5

million tonnes, with a total sale value of Rs. 409 crore. The total

revenue to the state from marble was Rs. 68 crore.

Marble in Rajasthan has huge demand potential within the country as

well as in the foreign markets, driven largely by growth of construction

sector, which continues to grow in most Indian states at over 10% pa.

In the state more than 2000 units of marble-based industries are

under operation. In 2000-2001 there were about 3,053 leases, 834

quarry licenses and more than 1100 gang saw units working in the

state.

The industry as a whole employs more than 5 lakh people in the state

directly, out of which about 3 lakh people are deployed in mining and

the rest in processing and trading activities. There are also more than

5000 trading concerns of marble.

Of the total marble production in the state, approximately 60% is

contributed by southern districts of Udaipur, Rajsamand, Chittaurgarh,

Ajmer, Nagaur and Jaipur.

It is estimated that there are over 400 marble processing units in

Udaipur alone, a large number of which are in the Gudli and Suker

Industrial Area. As part of the marble processing i.e. tile cutting and

polishing, considerable amount of waste in the form of water mixed

slurry is generated. According to estimates made by Centre for

Building Research (CBRI) the generation of waste slurry in Jaipur

alone is in the region of 800 tonnes per day.



While marble blocks are cut by gang saws, water is used as a coolant.

The blade thickness of the saws is about 5 mm and normally the

blocks are cut in 20mm thick sheets. Therefore, out of every 25mm

thickness of marble block, 5mm are converted into powder while

cutting. This powder flows along with the water as marble slurry. Thus,

nearly 20 % of the total weight of the marble processed results into

marble slurry. The marble slurry has nearly 35%-45% water content.

The total waste generation from mining to finished product is about 50

% of mineral mined

Most of the slurry is dumped along road side or in open spaces which

is leading to serious ecological and environmental hazards. Safe

disposal of the waste generated is a critical requirement of the region,

for in case the same is not done, there could be potential

environmental regulations (such as a PIL) that can effectively curtail

the growth of the marble industry in Rajasthan, especially South

Rajasthan.

It in this background that this project i.e. management of marble

slurry by recycling for making building material is proposed. The

project envisages setting up of marble slurry recycling units in Udaipur

– preferably in the Suker or Gudli industrial area.


The project beneficiaries can be segregated under four broad

categories:

1. Environment – The project would help in countering the following

threats to eco – system caused by marble slurry:

When dumped on land, it adversely affects the productivity of land

due to decreased porosity, water absorption, water percolation etc

Slurry dumped areas can not support any vegetation and remain

degraded



When dried, the fine particles become air borne and cause severe

air pollution. Apart from occupational health problems, it also

affects machinery and instruments installed in industrial areas

During rainy season, the slurry is carried away to rivers, drains,

roads, and water bodies affecting quality of water, reducing

storage capacities and damaging aquatic life

Due to long term deposition on land the finer particles block flow

regime of aquifers thus seriously affecting underground water

availability

The heaps of slurry remain scattered all round the industrial estate

are an eye sore and spoil aesthetics of entire region. Subsequently

tourism and industrial potential of the state is adversely affected

2. Marble Units – The project is likely to benefit over 300 marble

processing units in Udaipur by providing them opportunity for cost

effective disposal of marble slurry.

3. Employment Generation – The project can help generate business

opportunity for the SSI sector and help generate employment. It is

estimated that to cater to the waste generated in Udaipur alone a

number of units would be required which can provide direct

employment to over 200 people.

4. Cost of Construction – With commercialization of the technology

the cost of the building material can be brought down substantially

and the bricks from the marble slurry can be a potential source for

construction of low cost housing.

3. Demand. Marble is now widely acknowledged as one of the cheapest option for

flooring and other uses. Due to advent of sophisticated mining

machinery and development of new mining areas, production has



increased manifold and is estimated to be over 4.5 million tonnes per

annum.

Marble industry has its sole dependence on the construction industry,

which has seen rapid growth in the past. According to industry reports,

the construction industry has witnessed more than double digit

compounded rate of growth during the last decade. It is also projected

that the construction industry is likely to witness a growth of over 15%

per annum in the foreseeable future.

Sustained growth in the construction industry provides the primary

demand for building materials. Research and pilot production of

building material by recycling of marble slurry has already been done

successfully. The table below shows different products which have

been developed by different agencies so far.

S.No Products Name and Addresses of the Institutes

1 Tiles with 50 % marble dust and jute fibre bound with resin. Tiles have also been made with marble dust with cement bonding. Door panels made out of marble slurry have also been made. This product can also be used as a wood substitute.

Regional Research Laboratory, Bhopal C. S. I. R. Hoshangabad

2 Tiles made with marble dust upto 90% bound with resins.

Macro Molecular Research Centre, Rani Durgavati University, Jabbalpur

3 Their preliminary work has suggested that marble slurry can be used for road making exercises.

Central Road Research Institute, New Delhi

4 Building bricks have been developed using marble slurry.

Central Building Research Institute, New Delhi

5 Possibilities of using this waste for cement making are being explored in NCCBM.

National Council for Cement And Building Materials, Haryana

6 Fired tiles incorporating marble slurry/dust have been developed.

Central Glass and Ceramic Research Institute, Ahmedabad



Besides demand in building material, there has been successful

attempts made by tyre industry for using marble dust as an inert filler.


Research laboratories have already undertaken a good amount of

work and have developed lab level of technology for different

products. The need today is to upscale the technology and popularize

these products by establishing their commercial viability. It is in this

connection that we believe that Government of Rajasthan can play a

key role.

It is proposed that the Government of Rajasthan play a key role in the

commercialization of technology by promoting a unit under a joint

sector project and by creating an enabling policy for improving the

financial viability of such units. The rationale for setting up under joint

sector is explained under the section on structure of the project and

government support required.

The project envisages setting up of manufacturing faculties at Udaipur

(preferably at Gudli / Suker industrial area – in view of large

concentration of marble processing units). The facilities proposed are

for the production of cured cement mixture bricks, blocks, tiles,etc.

Marble slurry would be used as a substitute for sand.

The project details described herein are based upon work undertaken

by Udaipur Chamber of Commerce and discussions with officials of

the Chamber. The project cost has been estimated based upon the

following capacity:

Installed Capacity : 6000 bricks or 2000 blocks per day (1

shift)

Products Mix Capability : Bricks, Tree Guard, Solid and Hollow

Bricks, Pavement Blocks and Toilet

Units



Manufacturing Process : Dry mixing with cement as accelerator

Use of roller grinder for paste

preparation

High pressure brick molding press

The project is estimated to cost in the region of Rs.12.65 Lacs, as per

the breakup given below:

Land and Building: 710000 - land 600000

- Shed: 400 sq. ft @Rs.225 / sq. ft 90000

- Tube Well and Boundary Wall 120000

Plant and Machinery: 300000 - Moulds

- Mixer

- Block Making Machine

Miscellaneous Fixed Assets: 25000 Preoperative Expenses 60000 Margin Money for Working Capital 55000 Calculated on the basis of 7.5 days of raw material, process time of 15

days, ready stock of 15 days, receivables of 7.5 days and expenses of

30 days.

Contingency @10% 11500 Total 1265000

5. Project Economics. The project economics is based upon detailed study undertaken by

UCCI. UCCI is one of the prominent agencies in the state engaged in

promoting use of marble slurry for construction. The key assumptions

under which the financial projections have been undertaken are as

under:

Installed Capacity – 6000 bricks or 2000 blocks per day per shift

No. of Working Days – 300 days per year

Capacity Utilization

First Year: 70%



Second Year: 75%

Third Year Onwards: 80%

Wastage @2%

Product Mix annually as per table given below:

Products No. of working days

Per day capacity

Annual capacity

Capacity utilization

Production waste @ 2%

Saleable Quantity

Rate Sales

Bricks 100 6000 600000 420000 8400 411600 1.3 535080 Tree Guard 25 6000 150000 105000 2100 102900 250 233750 Solid Blocks 37.50 2000 75000 52500 1050 51450 4.5 231525 Hollow Blocks

37.50 2000 75000 52500 1050 51450 3 154350

Toilet Unit 50 0.72 36 25.2 0.2 25 3500 87500 Pavement Blocks

50 6000 300000 210000 4200 205800 1.25 257250

Raw material Consumption per annuum, based upon the above

product mix would be as per table given below:

Products Weight / Unit in KG

Annual Capacity

Total Weight

Capacity Utilization @70%

Monthly Capacity Utilization

Bricks 3.01 600000 18006000 1264200 105350 Tree Guard 2.75 150000 412500 288750 24062.50 Solid Blocks 8.9 75000 667500 467250 38937.50 Hollow Blocks

7 75000 5255000 367500 30625

Toilet Unit 5200 36 187200 131040 10920 Pavement Blocks

2.25 300000 675000 472500 39375

Total aggregate requirement for the first year is 2991 tonnes.

The salary cost has been assumed for 1 manager, 1 supervisor, 2

skilled and 7 unskilled workers.

A lumpsum provisions per month has been kept for other

expenses including marketing



Based upon the above, the total sales realization for the company in

the first year would be Rs.14,99,455 against which the total expenses

is projected at Rs.13,63,878. The above expenses include

depreciation and interest on term loan calculated 14% pa. The above

provides an IRR of over 20% to the investor.


It is suggested that the project be undertaken as a joint sector project

for the following reasons:

This project would serve as a demonstration project and direct

government support would be necessary to

Government would need to play a proactive role in technology

dissemination as a result of the project, which in turn in necessary

for ensuring setting up of additional units. It is understood that

there already exists a MoU between TIFAC and the Rajasthan

State Industrial Development & Investment Corporation (RIICO) on

cooperation towards Industrial Development of the State, and one

of the project identified as part of this partnership is gainful

utilization of marble slurry.

Close association of the Government with the demonstration

project would help develop a practical and a comprehensive policy

for the state for the purpose of utilization of marble slurry, and

finally

Association of the Government to the project would help in the

process of tying up funds with agencies such as TIFAC and

BMTPC, who are mandated to promote such technologies.

Government equity into the joint sector project can be in the form of

provision of land for the project. However, since is not the business of

the Government to run commercial operations; the government can

identify the private partner for the project by bidding the project out to



the party which bids the maximum for buy back of the Governments

equity after a predefined period of time say 3 or five years.

In terms of going forward, the Government through one of its agencies

needs to undertake the following:

Agree on the need for such a project and the fact that Government

needs to play a key role in promoting the same,

Initiate discussions with agencies such as CRRI, CBRI, Roorkee

University, TIFAC, UCCI, etc to collect and collate the research

done so far

Provide a small technical grant for preparation of the technical

project report for the project and support required from the

Government

Identify a suitable site in Udaipur for the project

Define the criteria for identification of the private promoter for this

joint sector project

Bid the project out.

Water and Power Consultancy Services Ltd (WAPCOS) has taken up

preparation of a report for the National Programme for the

Development of Stone Industry (NPDSI). The state government is

contributing to this effort. Centre for Development of Stones (CDOS)

promoted by the state government should also provide technical

assistance for development of this project.

Besides the above, for successful implementation of the project, it

would be important for the Government to announce a policy for the

utilization of marble slurry. While development of a policy framework

would require extensive discussions with stakeholders, which is not

under the purview of this assignment, mentioned below are some of

the parameters which would needs to be addressed in the policy so as

to make such projects technically and financially viable.

Mandatory adoption and use of filter presses at marble processing

units. This would not only conserve water, it would also reduce



water content in the slurry. It is estimated that filter press can

reduce water content in the slurry upto 70%. This would help in

easier disposal and handling of marble dust – a key input for

making of building materials

Provision of landfill site close to marble clusters. The land fill site

should be at a location close to where the recycling unit is

proposed to reduce handling costs

Mechanisms for creation of a trust between the industry and local

officials that would ensure transportation of marble cakes to the

disposal site at no cost.

No purchase tax on the marble slurry. At least in the initial years of

project development. This would ensure cost effective production

of building material and help establish market and use of the

same.

Mandatory use of building material from marble slurry for all

construction contracts awarded by the Government. This could

initially be limited to boundary walls, construction upto plinth level

(strength of the bricks made by marble slurry is higher than normal

sand bricks, thus making holes in the same has been found

difficult), etc in districts / areas within a districts where such

facilities need to be established

Define the technical specification for use of such building materials

in construction.

RIICO has made progress in providing a conducive policy for

utilisation of marble and kotah stone slurry. Putting-up of a filter press

is a process eligible under Government of India’s Credit Linked Capital

Subsidy Scheme. The State Government has taken an in principle

decision to provide land free of cost for developing of dumping yard.

322 bigah of land has been given free to Kishangarh Marble

Association. The State Government has already approved financial

support to the units manufacturing items based on marble slurry.



Initial Screening Report (Ma – 3) Recycling of Marble Slurry at Udaipur

Page 12


The project carries a number of risk, listed in order of importance:

Risk of Acceptance: There is always a risk of acceptance,

especially for products, which have not been used ever before.

However, this risk can be suitably addressed, if the government

was to agree to the various recommendations contained in the

section before.

Demand Risk: Linked closely to the above, there is a demand

risk, which would be driven by the rate at which the product is

accepted. As has been suggested before, the Government can

play an important role in mitigating this risk by creating a captive

demand during the initial phase of product role out so as to ensure

acceptance of the product.

Technology Risk: While there has been considerable success in

the production of building materials from marble slurry on a lab

scale and there are manufacturers willing to provide technology for

implementation of the same on commercial scale there is still

some risk of technology. This is driven by the fact that commercial

exploitation of the technology is yet to be fully established. This

risk can however be mitigated by entering into contractual

obligations (performance guarantees) with the vendor.

8. Conclusion. Recycling of marble slurry would be critical in dealing with the

environmental damage marble dust creates. Besides environmental

protection, the proposed project has the potential of creating alternate

building material which is technically better than normal sand bricks

currently used. Initial work by different research agencies suggests

that such projects are both technically feasible and financially viable.

However, implementation of the demonstration project requires

support from the Government and thus the project is suggested for

implementation as a joint sector project.



1. Setting-up Common Effluent Treatment

Plant and 2. Industrial Water Supply in Bhilwara

Ma - 4

Page 1Initial Screening Report (Ma – 4) Industrial Projects - Bhilwara

Top Sheet for ISR: Industrial Projects – Bhilwara

Title Description Background Bhilwara accounts for about 47% of the net valued

added of textiles in Rajasthan. Textiles and Related Products are among the most significant contributors to the state income (about 25% of net value addition of registered manufacturing in Rajasthan). For textile processing units, water is one of the most critical inputs and there is currently no organized mechanism for meeting the industrial water demand.

The Project It is proposed to set-up an Industrial Water Supply Project and Common Effluent Treatment Plant (CETP) for Bhilwara


The two industrial projects are aimed at meeting the water requirements of the existing 27 units in Bhilwara besides reducing the effluent discharge level to within prescribe limits


The existing water requirement of industries is approximately 18 MLD and 4 MLD is required by the new growth centre in Hamirgarh


The project is estimated to cost Rs. 20.9 crore

Opportunities for private sector

The cost of transportation of treated water, tertiary treatment & CETP should be shared by the industry and municipality. The CETP should be run by the industry association


There is construction risk involved in CETP as the processing units are located in different regions. Also water may not be enough to draw for industrial purpose from the drinking water supply scheme.

Project Viability The project can be made viable and set up by the state by seeking assistance from centre under its various schemes for textile sector.


The state needs to ensure co-ordination between the industry associations and government department to set-up the CETP and Industrial Water Supply project



1. Project Concept

Background to Bhilwara

Bhilwara district lies on the south eastern part of Rajasthan. It extends

from 2501 to 250 58 north latitude and from 740 1 to 750 28 east

longitude. The city enjoys a fairly high degree of accessibility. The

district is bounded by district Ajmer in North, Chittaurgarh in South,

Rajsamand in west and Bundi in East. The geographical area of the

district is 1047451 hectares and covers approx 3.05% area of the

state. There is only one main seasonal river in the district – Banas.

This river rises in the Aravali hills in the North in the Udaipur district.

The river Banas enters the Bhilwara district near village Doodiya in

tehsil Bhilwara. It approaches the hills of Mandalgarh and is joined by

the river Berach on the right bank and Kothari on the left. The chief

feeders of the river are Mansi, Khari, Kothari and Berach.

As per the 2001 census, the total population of the district is 20.09

lacs. 80% of the population resides in rural areas. The district has 8

towns which include Bhilwara, Shahpura, Jahazpur, Mandal, Asind,

Bijoliya Kala, Mandalgarh and Gulabpura. The district has largely an

agrarian workforce and approximately 74% of the total workforce is

engaged in agriculture and related activities.

Bhilwara city is one of the most important industrial centres in

Rajasthan. The region is the hub of textile industries in the state and

Bhilwara is well known as “Textile City”. Before independence, it was

famous for its mica, soapstone and sandstone mineral products at

international level. In 1978 when the District Industrial Centre (DIC)

was established, only 1059 small scale industries were registered.

However by March 2002 this figure has risen to 12739. Besides

textiles, insulation bricks, A.C. Conductors, tractors & compressors,

china clay, 'Hozari' Products, fertilizers and 'Niwar' Industries are other

main industries in Bhilwara.



Bhilwara is a developing city and the development has taken place in

a very irregular manner. The random development of the city has

created a barrier towards development of proper infrastructure and

civic facilities. The main problems are arising out due to shortage of

housing, growth of “Kachhi Bastis”, inadequate transport facilities, lack

of drainage and solid waste management and shortage of

infrastructure such as sewerage, water supply, inefficient road network

etc.

RIICO has developed 10 industrial areas having 1172 plots. The major

industrial areas are Bhilwara Phase I, II, III and IV, Bhilwara

Extension, Bigod (Mandalgarh), Jahazpur, Raila, Mandpiya and Kanya

Kheri. RIICO has also proposed a new Growth Centre at Hamirgarh in

the district. Majority of the industrial areas depend on ground water

source for water supply. The rate of depletion of ground water in

Bhilwara is amongst the highest in Rajasthan.

Bhilwara accounts for about 47% of the net valued added of textiles in

Rajasthan. Textiles and Related Products is among the most

significant contributors to the state income (about 25% of net value

addition of registered manufacturing in Rajasthan). The textiles

industry also accounts for as much as 97% of the total net value

added of the district, thereby highlighting the importance of this

industry to the economy of Bhilwara as well as Rajasthan

For textile processing units, water is one of the most critical inputs.

The total water requirement of processing units in Bhilwara city is

estimated to be 18 MLD (million litres per day) while the water

requirement for the new growth centre is estimated to be

approximately 4 MLD. There exists no system of providing water to

these processing units. Most units are dependent on purchase of

water from private tanker operators. For the survival of the existing

textile units as well as to attract new industries, an organized system

of water supply would be required.



It is therefore proposed to set-up an Industrial Water Supply Project for Bhilwara. Besides meeting the demand for existing textile units,

this project would cater to future industrial development in the region.

There are presently 22 processing houses and 8 dye houses in

Bhilwara. Out of these, 22 process houses and 5 dye houses are

located within Bhilwara city itself. Most of these units have their own

Effluent Treatment Plant (ETP) with installed primary, secondary and

tertiary treatment facilities. Rajasthan State Pollution Control Board

has set the condition of zero effluent discharge on textile units.

Current objective served by the ETP is to recycle water to make it

reusable by the units. Currently only about 30% to 45% of the effluent

can be recycled. Some of the older units are permitted to discharge

only upto 30% of the discharge. Given the zero effluent discharge

norm of RPCB, a common ETP would help to ensure that these units

continue to function through ensuring recycling the entire effluent

discharge. It is therefore proposed that a Common Effluent Treatment Plant (CETP) be set-up. A part of the treated water can be

recycled to be used by the industries while the remaining could be

discharged into the Banas river to recharge the ground water supply.

Thus besides reducing the industrial effluents, the CETP would also

assist in meeting the industrial water requirements for the textile units.


The textile industry in Rajasthan contributes to about 40% of the

country's export of total synthetic blended yarn. There are

approximately 34 large and medium scale units in Bhilwara district

with an investment of Rs. 943.52 crore and providing employment to

approximately 20677 people. Textile units constitute a majority of

these industries and they are located primarily in and around Bhilwara

city. The major beneficiaries of the proposed Industrial Water Supply

Project and CETP are:



Textile Units: The two industrial projects would directly benefit the

processing and dye houses in Bhilwara. Besides reduction in the

effluent discharge, the water requirement for these units would be

augmented to a large extent

State Government: Bhilwara is an important industrial region for

the state. Besides revenue in the form of direct and indirect taxes

from textile related businesses, the region provides employment to

a majority of the population and earns valuable foreign exchange

through exports. Setting-up the industrial projects would assist in

future industrial growth in Bhilwara and benefit the existing

industries.

3. Demand.

The existing waster supply sources (Dams) are not receiving sufficient

water even to meet the city drinking water demand of Bhilwara town.

Further the inadequate rainfall has made the situation worse. The

Ground Water Table (GWT) position within a few years has dropped

from 100 ft. to 600 ft. The Public Health Engineering Department

(PHED) is providing drinking water either on alternate day or once in

three days. PHED is able to supply only 7 MLD water to meet city

requirement from many sources against the desired demand of 28

MLD @100 lpcd (litres per capita per day). Considering the deficient

water supply in the city, a new project of approximately Rs. 30 crore is

undertaken by PHED in Kankroliya Ghati on Banas river, which will

ensure 18 MLD of drinking water to the city.

It is proposed that the drinking water supply project also have a

component for industrial water supply to meet the demand of the

textile units. Bhilwara industrial water demand is substantial due to the

presence of 30 large to medium scale textile industries in and around

Bhilwara city. Water is one of the most important constituents of the

textile processing industry. The total water requirement of processing

units in Bhilwara city is estimated to be 18 MLD (million litres per day)

while the water requirement for the new growth centre in Hamirgarh is



estimated to be approximately 4 MLD. Over the last few years, the

water demand of the industries was not met. Currently, the processing

industries are meeting their water demand by their own sources as

described below:

Own Tube well source (Industry) - 4.705 MLD

From Rented sources - 2.99 MLD

From Private Tankers - 2.06 MLD

By Recycling (ETP) - 8.19 MLD

- 17.945 MLD But in future it will be difficult to meet this water supply also. In the

water scarce zones, it will be advisable to consider recycling the

treated water from a domestic waste water treatment plant for

industrial purposes. This will not only diminish the fresh water demand

of the industry but will also help in conservation of the fresh water for

potable use. Though the total water demand of an industry can not be

met with the treated waste water effluent, but certain demands like

use in boilers, gardening, floor washing and other similar uses can be

met easily.

The quality of water required depends on its end use or uses. The

tolerances for various impurities vary according to these use, the

quality of water require in each case may differ greatly. Considering all

these facts, it can be considered that treated effluent of from a

Sewerage Treatment Plant (STP) can be used for industrial purposes

after further tertiary treatment. The tertiary treatment plant envisaged

shall be able to bring down the biological oxygen demand (BOD) &

total suspended solids (TSS) levels of the STP effluent to 5 mg/l and

10 mg/l respectively. The effluent can be finally disinfected to bring



down coli form levels for human handling. Industries could use the

treated effluent as per their different requirement.

Note: The above views on demand are based upon discussions with

local industry associations, processing units and government

departments. As this report is a preliminary report (detailed primary

survey is not part of the scope of work), the same should be

undertaken before finalization of the project concept.


The Kankroliya Ghati water supply project is aimed to augment the

drinking water supply for Bhilwara town. The project would also link up

seven villages between the water source and Bhilwara town and meet

their drinking water requirements. The total project cost is estimated to

be Rs. 29.13 crore. HUDCO would provide a loan of Rs. 23.5 crore

for the project, while the remaining Rs. 5.63 crore would be borne by

the state government. A pipeline of 47 km would be laid down

between Kankroliya Ghati and Bhilwara. This would bring water to the

city and augment its service level from existing 36 lpcd to 100 lpcd.

Approximately 19 tubewells are proposed to be dug up in the

Kankroliya Ghati basin. It is proposed that to meet the existing and

future industrial water requirements of Bhilwara, a proportion of the

industrial water requirement should be incorporated in the drinking

water supply project.

Domestic Waste Water Treatment / Disposal Presently the whole sewage of Bhilwara city is disposed off in Kothari

river situated in the north of city thereby causing pollution to surface &

ground water sources. To protect the river basin a municipal sewerage

treatment plant (STP) of 15 MLD capacity (approx.) is proposed to be

constructed on the right bank of Kothari river. The major influent and

effluent design criteria for this STP shall be follows below:-

Influent Quality



BOD : up to 300 mg/l

COD : up to 700 mg/l Suspended Solid : up to 600 mg/l Ammoniacal Nitrogen : up to 35 mg/l as N Total Phosphates : up to 16 mg/l as P Sulphates : 30-130 mg/l TDS : upto 1000 mg/l Ph : 7.2 – 7.9 Effluent Quality

The STP will be designed to achieve the following treated sewage

quality standards:

BOD : 30 mg/l or less Total Suspended Solids : 50 mg/l or less

Industrial Waste Water There are 27 textile units located within the Bhilwara city itself. These

include 22 processing houses and 5 dye houses. Most of these units

have not been located in a planned manner and are dispersed along

three major routes which are highlighted below:

• 17 units are located on the Chittaurgarh road. These include 12

process houses and 4 dye houses. One dye unit is currently

closed. These units extend over a distance of 14-15 km

• 6 units are located on the Bhilwara Udaipur road also known as

the ‘Pur’ road. There are 4 process houses and I dye unit on this

stretch, while one process unit is currently closed. 3 process

houses are located in the RIICO industrial area while the dye unit

is located in the city area.

• 4 processing house units are located on the Ajmer road.



The average fabric processing capacity of these 22 units is

approximately 10 lac metres per day. The average water requirement

of the units is approximately 15-17 litres per metres. All 22 units have

good primary and tertiary treatment facilities, while about 50% of the

units have biological treatment facilities to reduce the BOD level. Most

of the dye units use vast land for plantation purposes and the land

requirement is approximately 40% of the total land requirement. The

average discharge from the units is 9000-11000 KL/day, which is

roughly 60% of the total intake of water. The water used for

processing in Bhilwara has very high totally dissolved solids (TDS).

This TDS reduction is not possible by conventional means and

requires expensive techniques like reverse osmosis or electro dialysis.

The industrial waste water of major industrial area situated on Udaipur

(Pur) road and Chittor road is being discharged in a natural drain &

finally in Gaudi Nala and spreading in fields, thereby causing local

environmental problem.

Major Industrial Area Effluent Quantity

Chittor Road Industry Effluent - 6 MLD Udaipur Road Industry Effluent - 1.5 MLD

Total - 7.5 MLD

Hence a Common Effluent Treatment Plant (CETP) of 7.5 MLD is

proposed close to river Banas and the treated effluent of CETP could

be discharged into the river or reused for agriculture purposes. To

overcome the shortage of water, it would be possible to reuse the

treated water by pumping it back to the individual units.

Project Cost The total project cost is estimated to be Rs. 20.9 crore. The break-up

of this cost into various elements is presented below.

• STP of 15 MLD near Subhash Nagar & - Rs. 4.95 crore

and Kothari River by (Municipality)



• Treated Effluent Transportation costs (Industry) - Rs. 5.5 crore

• Sump well & Tertiary Treatment (industry) - Rs. 7.15 crore

• CETP of 7.5 MLD for Industry @ Rs. 40 lacs per MLD - Rs. 3.3

crore

5. Project Economics. The cost of STP should be shared fully by Bhilwara municipality & cost

of transportation of treated water, tertiary treatment & CETP should be

shared by the industry and the municipality. The CETP should be run

by the industry association. The treatment process and exact plant

capacity would be established during the Detailed Feasibility Study

based on quality and quantity of available waste water at the STP site.


The project should be implemented under a public private partnership

with Government of Rajasthan or one of its nodal agencies being a co-

sponsor of the project and the textile industry association of Bhilwara

being the other sponsor. There needs to be government support to the

project and the same can be done by providing land for STP and

CETP and ensuring co-ordination between various government

agencies (like PHED, Ground Water Department, Irrigation

Department, Municipality and Rajasthan State Pollution Control

Board) and industrial association.

Government can also look at raising funds for the project under GoI

schemes. The MOEF (Ministry of Environment and Forests) has set

up a scheme for establishing common effluent treatment plants

(CETP) in clusters of small industry units .The scheme is executed

through the Central Pollution Control Board in association with the

State Pollution Control Boards. About 7 CETP projects have been

approved under the scheme and these are at various stages of

implementation. The state government should pursue the same with

the central government to set-up the CETP in Bhilwara.



The state can also seek assistance from the centre under its various

schemes for textile sector. The central government’s Textile Centres

Infrastructure Development Scheme (TCID) which is a part of the drive

to improve infrastructure facilities at potential textile growth centres

and therefore, aims at removing bottlenecks in exports so as to

achieve the target of US$ 50 billion by 2010 as envisaged in the

National Textile Policy, 2000.

Under the scheme funds can be given to Central/ State Government

Departments/ Public Sector Undertakings/ Other Central /State

Government’s agencies/recognized industrial association or

entrepreneur bodies for development of infrastructure directly

benefiting the textile units. The fund would not be available for

individual production units. The central assistance will be subject to a

maximum of Rs.20 crores for a particular centre and it would be

limited to 100% of the critical components of the project in respect of

Common Effluent Treatment Plant, improving water supply and

drainage facilities and construction of crèche buildings for Apparel

Units. The other components shall be funded on 75:25 between centre

and states / reputed agencies concerned.


The various risks that are envisaged in the development of the project

and measures that can be taken to mitigate these risks are highlighted

below:

Construction Risk: Since the industrial areas are dispersed along

three different road stretches, it would be difficult to combine the

industrial waste for the purpose of CETP. Also since there is no

definite estimation on the quantity of water in the Kankroliya Ghati

basin, it would be difficult to incorporate an industrial water component

in the project. This has to be ascertained after a detailed feasibility


Initial Screening Report (Ma – 4) Industrial Projects - Bhilwara

Page 12


which highlights that there would be water available after meeting the

drinking water requirements.

Implementation Risk: The project success would depend largely on

the government’s ability to co-ordinate interaction between industry

associations and concerned government departments.

It is understood that the demand for industrial water in Bhilwara

cannot be met from the water supply scheme for drinking water for

Bhilwara Town. Therefore, alternatives such as use of treated waste

water from the CETP as well as from the STP need to considered.

Improving the use of recycled water would reduce the demand for

fresh water for industrial usage.

The process houses and industries are not located in a planned

manner and are spread out throughout the region. Therefore, the cost

of transportation of the effluent has been taken into account for project

costing. It is true that the process houses and dye houses are required

to operate their own effluent treatment plants with zero effluent

discharge as per norms of Rajasthan Pollution Control Board.

However, these treatment plants are very old and cannot meet the

effluent discharge standards. A CETP would help these units to

continue to operate without incurring substantial capital investment for

purchasing new equipment.

8. Conclusion. To promote industrial growth in Bhilwara and meet the unmet

requirements of industrial water, it is essential to undertake the two

industrial projects. Besides boosting the textile production of the

region on account of more units being set-up, it would bring down the

effluent discharge level, thereby improving the quality of ground water.


Initial Screening Report For

Integrated Utility Management of Bhiwadi

Ma - 5

Page 1Initial Screening Report (M a – 5) Integrated Utility Management of Bhiwadi

Top Sheet for ISR: Integrated Utility Management of Bhiwadi

Title Description Background Although Bhiwadi was promoted as an industrial township and

rapid industrial growth rate has been witnessed in Bhiwadi during the early 1990s, this has not been associated with matching infrastructure facilities and as a result there has been considerable slowdown in investment in the region. Further, with the proposed development of industrial model township by Haryana Government in Manesar, the attractiveness of Bhiwadi has been further eroded. To reverse this trend there is an urgent need to improve the infrastructure availability at Bhiwadi.

The Project Integrated utility management, including the following components: 1) System for wastewater and storm water disposal, 2) Sewerage system, 3) Solid waste management, 4) General Environmental Improvement, 5) Rainwater conservation, etc.


The overall objective of integrated utility management project is to develop quality industrial infrastructure in Bhiwadi, so as to enhance the industrial potential of Bhiwadi by easing some of the constraints being faced by industrial units.


Improper drainage and disposal of wastewater has resulted in water logging and contamination of groundwater and sub-soil. There is also no closed underground sewerage system in the town currently, and there is a requirement for a solid waste management system.


The total cost of the project is estimated to be Rs. 4950 lakh.


The main risks include availability of funds for design consultancy and implementation of works; land acquisition for major installations such as CETPs, pumping stations, secured landfill; capacity of the concerned authority to enter into an agreement with the private parties for installation of CETPs, etc.

Project Viability

Private sector participation can be sought for some of the proposed services, especially for the construction of CETP and construction of secured landfill for hazardous waste disposal on DBO basis. A detailed bankable project report should be prepared by a consultant who can be given a lumpsum fee for preparing the bankable documents for posing to funding agencies.


It is suggested that a Project Implementation Unit (PIU) be formed by drawing specialists in the fields of engineering, industrial waste management, health and environment, from the concerned departments. The PIU should be headed by a team leader who will co-ordinate the implementation of the design and implementation works / activities. A project implementation period of 18 months is suggested.



1. Project Concept

Bhiwadi is located in Alwar district, at a distance of about 70 km from

Delhi, on the Delhi-Jaipur National Highway-8. Bhiwadi has grown as

an industrial area town since 1976-77, when it was established with

the assistance of Rajasthan State Industrial and Investment

Corporation Ltd. (RIICO).

Bhiwadi is part of the National Capital Region (NCR), which comprises

the region around and including Delhi, and covers parts of the states

of Haryana, Rajasthan and Uttar Pradesh. Within the NCR, Bhiwadi

plays an important role in the economic development of Rajasthan as

well as in decongesting Delhi and Gurgaon.

RIICO has developed Bhiwadi in phases, and at present there are

about 1100 small and medium sized units comprising of automobiles,



chemicals, paints, drugs, pharmaceuticals and food products. The

main industrial areas within the Bhiwadi regions consists of Bhiwadi

town, Kushkhera and Chopanki. While the Bhiwadi industrial area is

fully occupied the industrial areas of Kushkhera and Chopanki are

largely unoccupied.

Bhiwadi industrial area is strategically located in the NCR region and

its proximity to the large markets of the northern region makes it an

ideal location for attracting industrial investments. In the recent past

there has been considerable interest shown by investors in investing

in the region.

With a view to facilitate development of the industrial area into a

industrial township and ensure coordination between various

departments of the Government, GoR had created Bhiwadi Industrial

Development Authority (BIDA) in July 1997. However, it has since

been disbanded.

Although Bhiwadi was promoted as an industrial township and rapid

industrial growth rate has been witnessed in Bhiwadi during the early

1990s, this has not been associated with matching infrastructure

facilities and as a result there has been considerable slowdown in

investment in the region. Further, with the proposed development of

industrial model township by Haryana Government in Manesar, the

attractiveness of Bhiwadi has been further eroded.

To reverse this trend there is an urgent need to improve the

infrastructure availability at Bhiwadi. It is in this background that the

current project profile has been prepared. The overall objective of

integrated utility management project is to develop quality industrial

infrastructure in Bhiwadi, so as to enhance the industrial potential of

Bhiwadi by easing some of the constraints being faced by industrial

units.



2. Project Beneficiaries

The project beneficiaries include the population of Bhiwadi Industrial

Area and the surrounding villages and township, as also floating

population, mainly from Delhi.

The population of Bhiwadi Industrial Area and the immediate

surrounding villages (5 in number) and township is estimated at over

55,000, while the population of the industrial area and surrounding 17

villages is approximately 1.15 lakh. The floating population from Delhi

and surrounding region is estimated to be 20,000 – 50,000. So in total,

a population of 1,50,000 (approximately 1 lakh fixed and 50,000

floating), covering the industrial area of 2000 acres developed by

RIICO and could be considered to be the project beneficiaries for the

current project.

3. Demand Mentioned below are the demand drivers for the integrated utility

management project for Bhiwadi.

1. Lack of adequate collection and treatment of wastewater and

storm water: Improper drainage and disposal of wastewater has

resulted in water logging and contamination of groundwater and

sub-soil. Each phase in Bhiwadi has a network of open drains to

collect wastewater from individual industries as well as serve as

storm water drain. These drains collect the wastewater towards

the disposal site located at the west side of the industrial estate

from where it ends up in the low-lying areas, creating unhealthy

and unsanitary conditions for the colonies around it. The collecting

drains are breached at some locations and not all the wastewater

reaches the disposal site. There is thus a need for proper

wastewater and storm water disposal.



Most of the major industries in the region have their own effluent

treatment plants, and some of them claim to reuse most of their

treated effluent for gardening and other purposes in their factory

premises. About 5-6 MLD of combined domestic and industrial

wastewater is generated, out of which the domestic component is

estimated to be 55 to 60%. Industrial wastewater quality and

effluent discharge standards are as follows:

Parameters Influent (mg/l) Effluent for irrigation (mg/l)

PH 6.6 – 6.8 5.5 - 9 TSS 115 - 128 < 200 TDS 1600 - 1750 < 2100 BOD 192 - 217 < 100 COD 562 - 588 < 100

2. Lack of closed underground sewerage system: Currently, Bhiwadi

has no closed sewerage system – the sewerage is carried through

open surface drains. There is thus a need for a proper closed

sewerage system for the entire town. This is in line with the need

for projecting Bhiwadi as an Industrial Township as distinct from an

Industrial Area.

3. Other urban infrastructure: There is a need for a proper solid

waste management system, for which a landfill site needs to be

identified and developed. Also, due to the groundwater position,

rainwater conservation measures and other techniques for

recharging groundwater need to be looked at.

4. Project Description and Cost Estimates

This section details the various components described in the previous

section, alongwith preliminary cost estimates.

1. System for wastewater / storm water disposal: The present

system of disposal of effluent in the Sahibi River in Haryana needs



to be avoided as it has and continues to create discord between

the two states.

Recently RIICO (erstwhile BIDA) has initiated a 6 MLD existing

CETP for both domestic and industrial waste water. This CETP

has been designed for meeting irrigation discharge standards. This

can be easily upgraded to produce treated effluent suitable for

water stream discharge. It can be recycled for industries’ reuse

after employing the tertiary treatment as well.

For the other remaining areas such as Chopanki (RL 280 m),

SCIPA (RL-270 m) through Khushkhera (PL-260-252 m), a new

CETP of capacity 6 MLD could be installed on or near Sahibi

riverbank (RL-248m). The water demand of the industries is 1000

gallons/acre/day. The capacity of the CETP comes out to be 6

MLD. The land area required for the CETP shall be approximately

6 acres. It may be mentioned that in Chopanki industrial area only

80% of the area can be covered through a CETP because of the

topographical characteristics of that area and hence RIICO should

ensure that allocation of land to industrial units in the industrial

area is undertaken in such a manner that no polluting industry is

set up in that area.



As new industrial areas such as Khushkhera, Chopanki and

Sarekhurd are yet to be fully developed, the effluent of all the

industries of the new areas could be flowed down in closed conduits

and disposed off in the proposed CETP near Sahibi river in Rajasthan.

This new CETP could be integrated into the planned disposal drain at

Industrial Area Khushkhera (see exhibit).

• Another option could be to install individual CETPs at Chopanki

and Khushkhera areas but these would only be useful and



• The third option could be that Chopanki industrial wastewater of

the tune of 3 MLD is carried to the existing dam, which is close to

Chopanki, and the same diluted water is reused for the Chopanki

Industrial purposes.

Considering all above options / facts, it is suggested that a

combined CETP of 6 MLD be set up near the river for both

Chopanki and Khushkhera areas.

In addition, a storm water disposal system for Bhiwadi is also

proposed, for which the cost is included separately.

2. Sewerage system: A proper closed underground sewerage

system for the entire town is proposed.

3. Solid Waste Management: There is a need for a proper solid

waste management system. This would involve identifying a

sanitary landfill site, carrying out an Environmental Impact

Assessment study, etc. Initial estimates suggest that roughly 25

hectares of land for 20 years period can be acquired for the landfill

site.

4. General Environmental Improvement: It is suggested that

plantation activities with the help of local NGOs be initiated.



5. Rainwater conservation: In order to supplement village water

supply and for recharging groundwater, measures such as building

sub surface dykes, check dam, percolation tanks, recharge

trenches, nalabunds, roof top harvesting etc. are suggested.

A summary of the components described above, and cost estimates

for these, is presented in the exhibit.

Summary of Cost Estimates S. No Name of work Estimated

cost (Rs. Lakh)

1 Sewerage and drainage upgradation and municipal and hazardous waste management system

4444

2 Solid Waste Management 506 TOTAL Sum of 1-2 4950 The cost estimates for the individual components are presented in the

tables below:

Cost of Sewerage, Drainage, and Solid Waste Management S. No Name of work Estimated

cost (Rs. Lakh)

1 Cost of Sewerage & Drainage within Bhiwadi 3938 2 Cost of Municipal & Hazardous Waste

Management System for both municipal as well hazardous waste from industries

506

TOTAL Sum of 1-2 4444

Cost of Sewerage and Drainage Systems S. No Name of work Estimated

cost (Rs. Lakh)

1 Cost of Detailed survey of Town preparation and sanction of scheme including telecommunication, photography, multi-media presentation, computerized designing etc.

10

2 Cost of providing, laying, & jointing main and branch sewer lines, sewer appurtenances, rising mains, pumping stations for the projected population of 2,00,000 @ Rs. 1000/person

2000

3 Cost of upgradation of the existing 6 MLD CETP at Bhiwadi for meeting the water stream discharge standards and recycling to the industries - LS - Rs. 25 lakh / MLD

150

4 Preparation of Digital maps and creation of GIS 100




Cost of Sewerage and Drainage Systems S. No Name of work Estimated

cost (Rs. Lakh)

based system 5 Cost of storm water drainage system in Bhiwadi 500 6 Wastewater disposal of Chopanki to New CETP

via Khushkhera –Approx.- 8 km @ Rs. 5000/m incl. booster Pumping station

400

7 Construction of New CETP (6 MLD) for Chopanki, Khushkhera near River Sabhi – incl. EIA

400

8 Plantation - LS 20 Sum of 1-8 3580 Add Contingency Charges @10% 358 Total 3938

Cost of Solid Waste Management (Disposal and Treatment) S. No Name of work Estimated

cost (Rs. Lakh)

1 Cost of Equipment (Details given below*) 60 2 Cost of Processing & Disposal Plant (Municipal

Land fill + Compost plant-30 MT/d) 350

3 Secured landfill for Hazardous Waste 50 Sum of 1-3 460 Add contingency charges @ 10% 46 Total 506

DETAILS OF COST OF EQUIPMENT S. No Equipment Estimated cost

(Rs. Lakh) 1 Mechanised vehicles for solid waste

transportation 18.03

Dumper Placer with Twin Container (1 no.) 7.06 3-wheeler auto cargo (2 nos.) 3.47 Small Van for Hazardous Waste (3 nos.) 17.50 2 Container and Equipments for Collection

of Solid Waste 41.77

0.50 Cu.m Containers Capacity (60 nos.) 1.80 1.00 Cu.m Containers Capacity (60 nos.) 2.60 3.00 Cu.m. Dumper Placer Containers (15

nos.) 4.70

Litter Bin (800 nos.) 7.90 Container for Domestic Hazardous Waste (20

nos.) 0.50

Containerized Handcarts (250 nos.) 12.00 Containerized Tricycles (30 nos.) 2.27 Sum of 1-2 (approx.) 60


5. Project Economics The total cost of the projects for improvement of sewerage & drainage

systems, hazardous waste disposal and construction of new CETP

are estimated to be Rs. 4950 lakh. The capital cost per person works

out to approximately Rs. 2475, with additional amount of 15% as O&M

charges per annum for maintaining the above-proposed facilities.

Since this investment will be for the total town population for the

design horizon of approximately 30 years, the works could be carried

out in phases.

Private sector participation can be sought for these services especially

for the construction of CETP and construction of secured landfill for

hazardous waste disposal on DBO basis.

A detailed bankable project report should be prepared by a consultant

who can be given a lumpsum fee for preparing the bankable

documents for posing to funding agencies. A success fee should be

offered to the consultants in case they are successful in arranging the

funds.

6. Assessment of Project Risks On the basis of discussions, the following risks are envisaged for this

project:

• Availability of funds for both design consultancy and

implementation of works

• Land acquisition for major installations such as CETPs, pumping

stations, secured landfill. The secured landfill site is to be carefully

chosen, with consideration to environmental and other social

factors

• Capacity of the concerned authority to enter into an agreement

with the private parties for installation of CETPs, on DBO basis



• Environmental Impact Assessment would be required due to large

construction activities

During project development and preparation of detailed reports,

studies should be taken up to determine remedial steps for mitigating

these risks.

7. Structure of the Project and Government Support required

The project is unlikely to attract private investments and yet are critical

for development of Bhiwadi as an Industrial Model Township. Funding

for this project would need to be made through budgetary allocations

and through CSS such as CETP (MOEF) and cluster development

scheme of GoI. It is suggested that a Project Implementation Unit

(PIU) be formed by drawing specialists in the fields of engineering,

industrial waste management, health and environment, from the

concerned departments. The PIU should be headed by a team leader

who will co-ordinate the implementation of the design and

implementation works/ activities.

The following time frame for implementation of the schemes is

suggested:

1. Design, Drawings & Tender Documents - 6 months

2. Construction of sewerage system - 12 months after

‘Activity-1’

3. Construction of CETP & secured landfill - 12 months after

‘Activity-1’

8. Conclusion As mentioned earlier, the integrated utility management project aims

to develop quality industrial infrastructure in Bhiwadi, so as to enhance

the industrial potential of Bhiwadi. While Bhiwadi has shown strong

growth ever since its establishment, infrastructure for industries has

not kept pace with this growth, and in order to attract more industries


Initial Screening Report (M a – 5) Integrated Utility Management of Bhiwadi

Page 13


in future, there is an urgent need to upgrade the industrial

infrastructure in the town.

The main components suggested in the project include upgradation of

the sewerage and drainage (including wastewater and storm water

drainage) systems in Bhiwadi, upgradation of municipal and

hazardous waste management system, and solid waste management

(including cost of landfill site, equipment, etc.) It may be noted that a

component for augmentation of water supply to the (19) villages

surrounding Bhiwadi through creation of a tubewell and Elevated

Storage Reservoir (ESR) in each village along with all accessories /

piping, etc. was also proposed in the initial project profile. However,

based on discussions with RIICO and other government departments

at the round table at Jaipur, it was decided that this component could

be taken up at a later stage given the fact that availability of funds is

likely to be a constraining factor for this project and therefore the need

to prioritise components.

For implementation, government support is envisaged, and for this, it

is suggested that a Project Implementation Unit (PIU) be formed by

drawing specialists from various fields. An implementation time

schedule of 18 months is suggested for the project.

Apart from the above requirements, certain additional projects have

been identified by RIICO as critical for integrated development of

Bhiwadi Region. These include (a) Bhiwadi-Rewari rail link, (b) Earth

Station at I.T Park and (c) Centralised Common Facility for Testing

and Quality Control in Bio-Technology Park. These projects have

been proposed for funding to the Critical Infrastructure Fund of the

State Government.


Initial Screening Report for Development of Industrial Water Supply for Jaipur

Ma - 6

Initial Screening Report (Ma – 6) Industrial Water Supply for Jaipur

Page 1


Title Description Background While Jaipur has been identified as one of the regions in

Rajasthan that are likely to attract the maximum investment in the industrial sector, the industrial areas in Jaipur face problems relating to quantum and quality of water for industrial use. The groundwater table has been depleting rapidly, and so groundwater cannot be a future source of water for industries.

The Project This project seeks to meet the urgent need for water for industries located in Jaipur region, specifically for the Sitapura Industrial Area, by drawing water from the main Bisalpur-Jaipur water project through creation of a spur line and other infrastructure for water transmission to this industrial area.


The project objective is to improve the water supply scenario for industries in Jaipur region. The options analysed are: Option A – supply recycled water from STP to industries, Option B – draw water from Bisalpur through creation of a spur line to Sitapura.


Most industrial areas in Jaipur region already face a water shortage, and in areas such as Sitapura, there is a problem relating to water quality as well – because of the high fluoride content of groundwater.

Project Cost Estimate

Option A is not considered feasible and so cost estimates have not been worked out. The cost of option B would be Rs. 4 crore.

Project Benefits

Supply of water to the Sitapura Industrial Area would ease the current problems relating to availability and quality of water for industrial use. This would thus provide a boost to the existing and proposed units in this industrial area.


All risk factors that would affect the main Bisalpur project (such as tying up of funding sources, etc.) would also affect this project. In addition, an agreement between PHED and RIICO for sharing of Bisalpur water for industrial use needs to be formalised.


The project could most likely be funded from JBIC / other financial institutions, as funding from these sources for the Part I of Phase I of Bisalpur is yet to be fully tied up. Another option is to obtain funds from the government budget allocation to the Industries Department. Yet another option is to recover a part of the cost from charging existing industrial units in these industrial areas / increasing the rates for plots to new units.


Page 2


1. Background Jaipur is ideally placed to attract investment in the industrial sector,

given its proximity to large markets (such as those of Delhi, Punjab,

and Haryana), location on the NH-8, good transportation linkages, etc.

Infact, Jaipur has been identified as one of the key industrial clusters

in Rajasthan. These clusters are believed to hold most of the future

investment potential in the state. Jaipur also lies on the existing

northern industrial corridor as identified by the NCAER, which extends

into Rajasthan into the districts of Alwar and Jaipur.

The Jaipur region has been divided into four broad industrial areas by

RIICO – these are Jaipur (South), Jaipur (North), Jaipur (Rural), and

Sitapura. Each of these in turn consists of several industrial areas.

There are currently approximately 50 medium and large scale running

units in Jaipur, and about 20,000 small-scale units. Jaipur is a center

for industries relating to textiles and related products, agro-based

industries, handicrafts, and basic metals and metal products.

The current availability of water for domestic and commercial

purposes in Jaipur is estimated at 300 MLD (million litres per day), of

which about 10 MLD is obtained from Ramgarh Lake, which is

dependent upon monsoon precipitation in its catchment. This is not a

very reliable source, as the lake has dried up frequently, resulting in

some very difficult water supply conditions especially in the walled

city.

Given the current (2001) population of 23.48 lakh, the above water

availability translates into a gross supply level of about 128 lpcd. As

against the total water supply, there is an estimated water demand of

319 MLD (as of 2001), which is projected to increase to 598 MLD in

2011 and 897 MLD in 2021. The projected water demand in Jaipur is

shown in the figure overleaf.


Page 3


Source: PHED, Jaipur

There are over 1000 PHED tubewells in the city through which

groundwater is available. However, there has been a rapid depletion

in the groundwater levels, with the water table declining in large areas

of the city.

It is clear that in the absence of augmentation of water supply, there is

likely to be a large demand-supply gap for water in Jaipur. The only

sustainable solution to the projected water shortage in the future is

therefore augmentation of water supply through a surface water

source. The proposed Bisalpur water supply project is the most likely

solution.

In industrial areas, the water supply is managed by RIICO (except for

the Vishwakarma industrial area, where the responsibility for industrial

water supply was transferred to PHED in the year 1980-81). These

industrial areas currently face water shortages and also problems

relating to water quality.

In order to ensure rapid and sustained development of the industrial

areas in Jaipur, one of the key requirements is availability of adequate


Page 4


infrastructure, including water for industrial purposes. This project

profile looks at options on addressing the constraints relating to water

shortage for industrial water supply in Jaipur.

2. Project Need

As mentioned, there has been severe depletion of groundwater in

Jaipur, with the water table going down rapidly. There has been a drop

in the ground water level in Jaipur of up to 22 meters in highly

exploited areas. Recent data on ground water in Jaipur indicates the

following situation:

Recharge 53.34 m cum

Draft 143.98 m cum

Stage of development 269.96%

If this trend continues, the reserves available will not last long unless

an alternative surface water source is commissioned. It is estimated

that around 26 sq. km area will become dry by the year 2006 and that

there will be a reduction of yield of PHED tube wells by 25.5 m.cum

per year by then. There has also been an increase in the level of

nitrates in groundwater (in large areas of Jaipur, the level of nitrates

has exceeded 100 ppm, which is the relaxed limit as per norms).

Several industrial areas are also facing problems with respect to water

supply for industrial use (see exhibit overleaf). In areas such as

Sitapura, groundwater availability is a problem, and the fluoride

content in the water is also reportedly higher than that according to

norms. Because groundwater cannot be a future source of water, the

only possible solutions to the water shortage are that treated water

from any Sewage Treatment Plants (STPs) in the area are made

available for industrial purposes or surface water from the Bisalpur

project is diverted for industrial use.


Page 5


Source: RIICO, Jaipur

Given the rapid industrialization of Jaipur and adjoining areas, and the

depletion of ground water, the survival of industrial units would depend

upon availability of water and hence there is a need for an industrial

water supply project for Jaipur. The options for augmenting the water

supply for the industrial areas in the city have been analysed in this

project profile.

3. Project Beneficiaries

Implementation of the proposed project is likely to benefit the

industries located in the industrial areas in Jaipur region, especially

the Sitapura industrial area.

S. NoName of Industrial

AreaArea under scheme

(acres)

Water Demand

(MLD) Water Supply (MLD) Gap (MLD)Jaipur (South)

1 Malviya 74.69 0.75 0.59 0.15 2 Mansarovar 61.64 0.61 0.45 0.16 3 Bassi (I & II) 57.71 0.57 0.34 0.23

4 Bassi (Ext) 40.99 0.41 As per demand, only

one connection NA5 Hirawala 36.94 0.37 0.34 0.03 6 Hirawala (Ext) 30.88 0.31 0.23 0.08

Total 302.84 3.02 1.95 1.06 Jaipur (North)

1 VKIA I to V Phase 518.25 5.18 3.64 1.55 2 VKIA VI Phase & Ext 151.63 1.51 1.14 0.38 3 Sarna Dungar 65.63 0.65 0.34 0.31 4 Kaladera 162.05 1.62 0.57 1.05 5 Jetpura 52.13 0.52 0.34 0.18

Total 949.69 9.49 6.02 3.46 Jaipur (Rural)

1 Bindayaka (I & II) 81.13 0.81 0.14 0.68 2 Bagru (Ext & Phase II) 299.61 3.00 0.18 2.81 3 Bagru (Chhitroli) 129.39 1.29 - 1.29 4 Kukas 74.91 0.75 0.09 0.66 5 Manpur Mancheri 36.96 0.37 0.09 0.28 6 Shahpura 42.62 0.43 0.14 0.29

Total 664.63 6.65 0.64 6.01 Sitapura

1 Sitapura Phase I 175.43 1.74 0.72 1.02 2 Sitapura Ext 60.35 0.90 0.57 0.32 3 Sitapura Phase III 197.08 2.83 0.72 2.11 4 Sitapura Phase IV 44.33 0.44 - 0.44 5 EPIP 165.93 1.64 1.44 0.20 6 Institutional Area 63.11 0.15 - 0.15

Total 706.24 7.69 3.45 4.24

TOTAL 26.85 12.07 14.78


Page 6


There are about 350 units in operation currently in Sitapura. These

units are involved in production of garments, gems & jewellery,

wooden handicrafts, etc. In the future, a larger number of service-

oriented industries are expected to come up in this area, particularly in

the EPIP – thus the urgent requirement for adequate quantity and

quality of water.

The existing units, as well as units which are likely to start operation,

will be the main project beneficiaries of the current project.

4. Current status of initiatives The current status of the proposed Bisalpur water supply

augmentation project as well as proposed sewage treatment plant

under the Rajasthan Urban Infrastructure Development project

(RUIDP) is given below:

• Bisalpur water supply project: The Government of Rajasthan

has taken the initiative to identify possible alternate sources of

water for Jaipur, and solve the problem of supply of drinking water

to the city. A dam located at Bisalpur (about 120 km away from

Jaipur) on River Banas (that is a tributary to river Chambal in the

Yamuna Basin) has been constructed. This dam, with a capacity of

906.51 m cum is proposed to be the source for future

augmentation of Jaipur Water Supply. The dam is already being

utilised as a source of water for the city of Ajmer and five other

towns of district Ajmer.

The Bisalpur project is to be implemented in two phases. The first

phase of the project has been designed for a raw water capacity of

1060 MLD and treated water capacity of 1019 MLD. The cost of

the first phase of the project is estimated at Rs. 1100 crore.


Page 7


Part I of the first phase, which will be implemented first, has been

designed for a raw water capacity of 540 MLD and treated water

capacity of 400 MLD (360 MLD – urban and 40 MLD – rural).

Industrial demand for water has been taken at 4% of the total

projected demand. The estimated cost of part I of the first phase of

the project is Rs. 690 crore, for which the following funding

sources are envisaged:

– Asian Development Bank (RUIDP) Rs. 480 crore

– JNN / JDA Rs. 30 crore

– ARWSP Rs. 25 crore

– Plan Budget Rs. 45 crore

– Other FIs (JBIC, etc.) Rs. 110 crore

A techno-economic feasibility study of this project has been carried

out through a French consulting firm, SAFEGE. The main findings

of the study, detailing the technical features of the project, are as

follows:

– Source: Bisalpur dam located about 120 km south of Jaipur

– Intake Pumps: 9 double speed vertical turbine pumps have

been proposed along with the necessary equipment

– Raw Water Transmission Mains: A 2400 mm MS transmission

pipeline 1.2 km long, followed by PSCC pipeline for length 7.2

km upto the treatment plant has been proposed

– Treatment Plant: To be located at a distance of 8.4 km from

the intake near Surajpura

– Treated Water Transmission System: The study recommends

use of MS or PSCC pipes depending on the water pressure.

The alignment for pipes has been chosen to follow a route of

an abandoned railway track for about 65 km

– Terminal Point: The terminal point has been recommended at

Balawala, an abandoned railway station south of Jaipur. This

pumping station will also be provided with variable speed


Page 8


pumps transferring water from the transmission mains to the

city distribution network

– Distribution System: The distribution system will consist of

primary and secondary transfer mains, secondary booster

stations, distribution sector stations, reservoirs and also the

distribution network refurbishment

The proposed alignment for the Bisalpur water supply project is as

shown in the map below and explained in the table overleaf. Tenders

for the main transmission line as well as for the two Central Water

Reservoirs (CWRs) – at Ramniwas Bagh and Balavala – have already

been floated.

Source: PHED, Jaipur

Project Configuration – Bisalpur Water Supply Main Transmission Line Diameter 1800 mm Configuration From Balawala to (just before) the Sanganer Railway

Station


Page 9


Project Configuration – Bisalpur Water Supply Eastern Branch Diameter 900 mm Configuration From Sanganer Railway Station to Sanganer Stadium,

Airport, Jagatpura, Agra Bypass, terminating at Khor Nagoria

% Capacity 6% Western Branch Diameter 1000-1400 mm Configuration Along New Sanganer Road, Kings Road, Queens Road,

Khatipura Tiraha, terminating at Jhotwara CWR % Capacity 25% Central Branch Diameter 1100-1800 mm Configuration From Durgapura, Tonk Road, JLN Marg (behind Clarks

Amer), Ramniwas Bagh, MI Road, Khasa Kothi Circle, Collectorate Circle, terminating at the PHED campus in Amanishah

% Capacity 69% Source: PHED, Jaipur

Under Part I of Phase I, only the Central Branch is envisaged to be

implemented (this would account for 69% of the total capacity

envisaged as part of Phase I). Part I of the first phase is expected to

be completed by October 2006.

• Sewage Treatment Plants: Currently, there is one Sewage

Treatment Plant in Jaipur region. This is located at Brahmpuri in

North Jaipur. Under RUIDP, an STP of 62.5 MLD capacity will be

constructed at Delawas, south of Jaipur. The estimated cost of

setting up this STP is Rs. 23 crore.

5. Project configuration and cost estimates.

Given the rapid fall in the groundwater table and the poor quality of

groundwater in most areas of Jaipur region, groundwater is not a likely

future source of water for industrial purposes. In the absence of this

option, there are broadly two alternatives that could be considered for

augmentation of industrial water supply in Jaipur. These are detailed

below.


Page 10


Option A

A possible option for augmentation of water supply to industries in

Jaipur is to consider recycling the treated water from a domestic

sewage treatment plant for industrial purposes. This will not only

reduce the fresh water demand of the industry but will also help in

conservation of the fresh water for potable use. Water required for

certain purposes such as for use in boilers, gardening, floor washing,

etc. could possibly be met through recycling.

The quality of water required depends on its end use or uses. The

tolerances for various impurities vary according to these uses, and the

quality of water required in each case may thus differ greatly.

As mentioned, a sewage treatment plant is proposed to be

commissioned under RUIDP (at Delawas, south of Jaipur). Supplying

treated water from the latter could be a possible option for augmenting

water supply in Sitapura. However, given the fact that a number of

service-oriented industries are likely to come up in Sitapura (including

at the EPIP), the quality of water that could be made available from

Delawas is not envisaged to be suitable for the requirements of the

units at Sitapura. Also, while an STP already exists in Brahmpuri in

North Jaipur, this is also not considered a viable option mainly

because of its distance from existing industrial areas in the region and

also because the quality of treated water is again not likely to meet the

requirements of the units.

This has therefore not been considered a feasible option in this

project, and supplying water from the Bisalpur project specifically for

industrial usage has been examined as the next (and more feasible)

option.

Option B

This option involves creation of a spur line from the Bisalpur

transmission lines for supply of water to the Sitapura Industrial Area.


Page 11


As mentioned, the implementation of the Central Branch into Jaipur

region will be taken up under Part I of Phase I of the Bisalpur project.

For the spur line to Sitapura, there are two possible options for the off-

take point – this could be at the Airport (on the Eastern Branch) or just

before Sanganer Railway Station. However, work on the Eastern

Branch is only likely to be taken up under Part II of Phase I, i.e. after

October 2006. Therefore, the point where the main transmission line

divides into the three branch lines, i.e. just before the Sanganer

Railway Station, has been taken as the starting point for the spur line

to Sitapura. Both at the starting point of the spur line and where the

main spur line divides into branch lines to supply water to Sitapura (as

shown in exhibit below), reservoirs and pumping stations would need

to be constructed. From these reservoirs, water would be pumped into

the existing reservoirs within Sitapura.

The cost estimates for option B is presented in the table below.

Summary of Cost Estimates S. No Particulars Estimated

cost (Rs. Lakh)

S I TAPURA

Sitapura Phase I, IV, Ext

Sitapura Phase III

EPIP

Just before Sanganer Railway Station

At Sitapura

Reservoirs and Pumping Stations

Reservoirs at Sitapura

Main Bisalpur transmission line

Spur line to Sitapura

Balawala


Page 12


Spur line to Sitapura 1 Reservoirs 50 2 Pumping Machinery 25 3 Spur line 300 4 Misc. and contingencies 25 5 Total 400 The total cost of option B for augmentation of industrial water supply

works out to Rs. 4 crore.

An option was also considered for creation of a spur line to the

Vishwakarma Industrial Area. For that, the starting point for the spur

line was taken as Amanishah, where the Central Branch terminates.

There would also be need for a reservoir at this point, as well as

pumping stations, and these yielded a total cost of Rs. 6 crore.

However, this option has not been considered in this ISR as based on

discussions with RIICO and other government officials, it was decided

that supplying water to the Sitapura Industrial Area was of higher

priority, especially with the proposed Special Economic Zone (SEZ) at

Sitapura, which has already been approved by the central

government. Therefore, in this phase, only industrial water supply to

Sitapura has been considered.

6. Project Economics

The total cost of the suggested option for augmentation of industrial

water supply works out to Rs. 4 crore.

Preliminary cost economics suggest that it may be difficult to consider

involving the private sector to fund this project. Various options for

funding the capital cost of the project have been considered. These

are briefly explained as follows:

• Funding from Financial Institutions such as JBIC: As

mentioned, for the main Bisalpur project, one of the sources of

funds includes financial institutions such as JBIC, from which Rs.


Page 13


110 crore is envisaged to be obtained as part of Phase I (Part I) of

the project. The augmentation of water supply for industrial areas

should be taken up as part of the Phase I (Part I) of the project,

and so funding from JBIC and other financial institutions could be

considered for the same as well

• Funding from the Government Budget: Some part of the

Government of Rajasthan budget allocation for the Industries

Department could be allocated for the proposed project

• Funds from existing industrial units: Another possible source of

funds for the project could be through a charge on the existing

industrial units in the Sitapura Industrial Area. However, it is

understood that the rates for plots paid by existing units already

included a charge for all requisite infrastructure, including water

supply. It may therefore be difficult to implement this option

• Increase in plot charges for un-allotted plots: An alternative

could be that RIICO could charge higher rates for plots from new

units (i.e. for the plots which have not been allotted yet), as the

industrial water supply project suggested would significantly

improve the situation with respect to water supply to these units

It would be feasible to recover the O&M cost of the project from the

industries and this could be charged by RIICO. Of the options for

funding of capital cost discussed above, it is recommended that the

first option (funding from Financial Institutions such as JBIC) be

explored as the most feasible option.

Given the criticality of this project, it has been proposed to the Critical

Infrastructure Fund of the State Government for assistance of Rs. 5

crore between 2004-2006.

7. Assessment of Project Risks


Page 14


Some of the anticipated risks involved in the suggested project are

listed as follows:

• The suggested project should be taken up as part of Phase I (Part

I) of the main Bisalpur water supply project. All the risk factors

affecting Part I of Phase I of the project, including the funding risk

(the fact that all the funding for this project has not been tied up

yet), would also affect the proposed project for augmentation of

industrial water supply.

• While the detailed feasibility report for the Bisalpur project takes

into account projected demand for industrial water (at 4% of total

demand), there needs to be a formal agreement between PHED

and RIICO to ensure that water from the Bisalpur project is

allocated/earmarked for industrial purposes as well, for which this

proposed project suggests a possible configuration.

8. Conclusion

A sustainable solution for meeting water requirements for industries in

the Jaipur region is critical for the overall economic development of

the city and the region. This project profile provides a possible

solution, by utilising part of the water from the proposed Bisalpur

project for Jaipur. However, the cost estimates provided in this report

may be refined following detailed technical engineering studies to

finalise the project alignment, pressure, location of reservoirs, etc.,

and therefore the cost of the project.

However, given the criticality of the project, it is important that GoR

takes forward the option suggested here as part of Phase I (Part I) of

the Bisalpur water supply project.


Project Concept Note On

Development of Rewari-Bhiwadi Rail Link

Ma - 7

Project Concept Note: Ma-7 Development of Rewari-Bhiwadi Rail Link

Page 2

Background Bhiwadi is located in Alwar district of Rajasthan, and is part of the

National Capital Region (NCR) of India (see exhibit). Bhiwadi region is

one of the most important and rapidly developing industrial areas of

Rajasthan, and is located at a distance of about 70 km from Delhi.

At the heart of the region is Bhiwadi industrial area, set up in 1976,

spread over an area of 2,138 acres. It houses about 1100 small and

medium sized units currently. Apart from the industrial township of

Bhiwadi, there are a number of other industrial areas within the

Bhiwadi region.

It is expected that Bhiwadi would ultimately emerge as a major

industrial centre in the Northern Region. Keeping in view the

enormous potential of growth in this area, the State Government has



Page 3

decided to develop Bhiwadi as a major industrial township for which

the "Bhiwadi Industrial Development Authority" has already been

constituted.

A large number of initiatives have been planned and developed for the

region. These include the following:

• Development of a multi-modal logistics centre (Dry Port) in

Bhiwadi region

• Export Promotion Industrial Park at Tapukra

• Special Economic Zone at Chopanki area

• Integrated Utility Management of Bhiwadi

In view of the current and projected economic activity in Bhiwadi

region, and the transportation needs to service this activity, there is an

urgent need for connecting Bhiwadi to the nearest broad gauge rail

head at Rewari (in Haryana), situated on the Delhi-Ahmedabad line.

The proposed link does not figure amongst the likely rail projects to be

taken up by Indian Railways (IR) in the foreseeable future and, as

such, GoR deems it fit to explore ways of structuring the above project

for private sector participation, within the applicable regulatory

framework. Such projects in the private sector are being currently

implemented, where IR is participating as a partner in implementation.

Strategic importance of the proposed rail connector Bhiwadi is connected to the National Highway (NH-8) by a connector

from Daruhera (at a distance of 10 km), a major centre for industrial

development in Haryana. On the east, Bhiwadi is connected by NH-2

to Palwal through a State Highway at a distance of approximately 50

km. Palwal falls on the main Delhi-Mumbai broad gauge line. Thus

Bhiwadi is very strategically located between two important arteries of

north India, and is well positioned to take advantage of these

connectors (see exhibit overleaf).



Page 4

Currently, goods movement out of Bhiwadi is entirely carried out using

road transport. However, all the proposed development will be stymied

unless a large scale goods movement artery that offers fast and

efficient connectivity is provided, which is possible only through rail

based connectivity.

Proposed Rail Link between Rewari and Bhiwadi

The proposed project is also in line with the NCR Plan, which aims to

develop the sub-regions of NCR, and to facilitate speedy movement of

goods and people through the proposed development of ring railway

connecting all the priority towns of NCR. Bhiwadi along with Rewari (to

its west) and Palwal (to its east) are designated priority towns as per

the NCR Plan, and therefore, rail connectivity is crucial for the

development of the towns of NCR.

Project Implementation The project could be implemented on a commercial format. Such a

format would enable appropriate state agencies to participate with

private sector investors, with whom an exclusive implementation

institution would be formed. This special purpose vehicle would then

be responsible for the execution of the project, in which the private



Page 5

sector partner shall have the majority stake (51 % and above), with

the remaining coming from GoR, Government of Haryana (GoH), and

IR. PDCOR Limited could partner with GoR in developing this project

on a commercial format.

Commercial implementation of the project on a BOT format requires

that a detailed techno-commercial study for the project be carried out.

The project documentation would in fact form the basis of the project

to be financed on a "Project Recourse" basis. The development phase

for the project could include the following:

• Preferred option study

• Detailed feasibility study

• Project structuring & contracting documentation

• Management of bidding process and selection of private sector

partner

As part of the project development activities, a number of studies such

as demand estimates, engineering investigations, socio-economic

studies, environmental and social assessment and legal review would

be required to be undertaken in order to position the project for private

sector participation. This would involve the following:

• Drafting the Terms of Reference for detailed development studies

• Appointment and management of study consultants

• Finalisation of project configuration and implementation format

• Contract documentation

• Setting up implementation structure

• Bid process, evaluation and award

• Financial closure activities

Project Development Cost Project development expenses for developing the rail link between

Rewari and Bhiwadi are estimated overleaf:



Page 6


S. No. Component Rs. Lakh

1 Technical studies, including

preferred option study, alignment

studies and detailed feasibility

studies

50

2. Detailed project structuring,

contractual and legal

documentation, bid process

management and selection of

private sector partner

25

3. Total estimated cost 75

The time frame for development of the project is estimated at

approximately 14 months. The total cost of the project for the stretch

between Rewari and Bhiwadi is estimated at Rs. 60 crore.

Project Funding A number of dialogues have been held at various levels for the

development of the project. Based on this, it appears likely that the

National Capital Region Planning Board (NCRPB) would fund 75% of

the total project development expenses, with the balance 25 % being

shared between GoR and GoH.


Concept Note on

Jaisalmer Sanu Railway Line

Ma -8

Concept Note (Ma-8) Jaisalmer Sanu Railway Line

Page 1

Project Background

Rajasthan has a large number of important industrial, ceramic,

fertilizers, ferrous and non-ferrous metal mineral deposits. Some key

facts that highlight the contribution of Rajasthan to India’s mineral

production are:

• 90% of India’s marble production

• 70% of India’s sandstone production

• 70% of India’s flaggy limestone (Kotahstone) production

• 30% of total value of minor minerals in India

• 99% of zinc concentrates and 80% of lead concentrates

production in India.

Jaisalmer is one of the most important mineral rich regions in

Rajasthan. The district has good production of limestone, ball clay,

dolomite, gypsum, ochres, siliceous earth, brick earth, etc. The

production and sale value of some key minerals in Jaisalmer is

presented in the exhibit below.

Key Minerals in Jaisalmer in 2001-02

Mineral Production (000 tonnes) Sale Value (Rs. in Lacs)

Ball Clay 0.25 0.62

Gypsum 171 345

Limestone 1445 4336

Siliceous

Earth

0.54 1.63

Granite 3 35.5

Kankar Bajri 78 12

Limestone

(dimensional)

17 24

Marble 75 239

Masonry

Stone

168 52



Page 2

Jaisalmer is the only region in the state where SMS or steel grade

limestone is produced. Extensive deposits of steel grade limestone

have been located near village Sanu in Jaisalmer district where total

reserves of over 550 million tonnes have so far been proved. This is

the most important source of steel grade limestone available in the

country for supply to various steel plants.

Sanu is considered as the best available indigenous source of law

Silica Limestone for Steel making without undue damage to the desert

ecology. RSMML is mining low silica Limestone, a special grade

Limestone called Steel Melting Shop (SMS) Limestone from Sanu

mines. The mining area is a desolate place in the heart of Great Indian

Desert with extreme climatic conditions. SMS grade limestone is then

supplied to various steel plants including those of the Steel Authority

of India Ltd.

The railway link is available only till Jaisalmer, whereas Sanu mines

are located about 60 km from Jaisalmer. Close to 50 lakh tonnes of

steel grade limestone is presently being transported by trucks till

Jaisalmer and sent further to steel plants across the country.

Limestone is being transported in bulk by rail to the five steel plants at

Adityapur, Bhilai, Bokaro, Rourkela and Durgapur. It is also going in

bulk to Surat to the cement plant of Essar by road because currently

there is no broad gauge track from Jaisalmer to Surat.

RSMDC (now RSMML) and RSMML both have mining contracts from

Jaisalmer and both supply to SAIL and Tata Steel. The freight for the

transportation of limestone is paid by SAIL and Tata Steel whereas

the state mining undertakings only act as suppliers and loaders of

limestone.

Transporting limestone by rail would result in considerable savings in

cost compared to road transport. This would benefit the domestic



Page 3


limestone and cement industry, as currently import of steel grade

limestone is cheaper.

Therefore it is proposed to construct a new railway line from

Jaisalmer to Sanu. The total length of the proposed railway line is

approximately 56 km. This railway line would assist in linking the steel

grade limestone deposits with the main railway head at Jaisalmer and

thus be transported to major steel plants in eastern India. The lime-

yield of Jaisalmer limestone is the highest with only around 2-3%

losses as compared to even imported limestone which has 14-15%

losses in the oxidation process.

Further, based on discussions with RSMML and the mining

department, it has been estimated that there is potential for setting-up

couple of major cement plants in Sanu area of Jaisalmer district of

Rajasthan to make use of fines/rejects generated during the

production of Low Silica Limestone aggregates of specified sizes.

The state should actively seek discussions with railways in setting-up

the railway line. Also the government should approach major steel

plants in terms of estimating their demand and transport price for steel

grade limestone. The project could be constructed on a BOT basis

with RSMML and SAIL being major stakeholders.



Development of Filmcity in Rajasthan

Ma - 9

Project Concept Note: Ma-9 Development of Filmcity in Rajasthan Page 2

Background Cinema has been one of the most important audio-visual forms of

communication. Rajasthan, with its rich heritage, offers colourful and

picturesque locales and backgrounds for the film industry to develop in

the state. There is tremendous scope to develop a “filmcity” in the

state, given that Rajasthan would be well placed to offer various

options for development of sets, which could recreate various

experiences – such as rural villages, village haats, palaces, forts,

lakes, etc. These would tap the rich and colourful heritage of the state,

the way of living of its people, etc.

Digital content development is emerging as one of the fastest growing

service segments in the global IT enabled services industry. It caters

to the needs of web site management, developing animated movies,

production of content for new media such as compact disk, digital

versatile disk and products of convergent technologies such as

Internet enabled TV, etc.

The areas that a production house can concentrate on are 2D & 3D

animation/modelling and using Motion Capture Technology, special

effects (morphing, colour correction, blue screen, compositing), editing

(linear and non linear), post-production film scanning recording. One

of the key catalysts in this segment of the market is the availability of

bandwidth, studio capable of integrating various elements such as

graphics, images, animation, sound, and most importantly, the

availability of programming talent.

The advancement of digital technologies is revolutionising the

animation industry. Presently, India corners a mere 0.1 per cent of the

$30 billion global revenues generated by the animated movie sector.

However, the animation industry has immense potential for the Indian

market. Given that the Philippines, China and South Korea dominate

the global market with an 80% share, there is a vast market to be

tapped.



Given the scope for digital technologies as mentioned above, and

given the rich heritage and beautiful architecture of Rajasthan, the

state is well placed to capitalise on this opportunity. This would also

give a boost to the development of the IT sector in the state.

Project Concept It is suggested therefore that a designated area could be set up as a

comprehensive and professionally planned film production centre or

“filmcity” to promote development of Hindi and Rajasthani movies and

television productions.

This would be in the form of a world-class film studio complex, which

would have all the requisite infrastructure required for film shooting

and developing, including the entire range of film pre-production,

production and post-production facilities and services. The filmcity

could potentially include the following:

Production Facilities:

• State-of-the-art studios, i.e. shooting stages, of various sizes

(some with readymade sets and others free to create sets of own

choice) with the most sophisticated world-class equipment to cater

to production of any magnitude

• Special (including outdoor) sets, which recreate different

experiences (such as for instance recreated villages, village haats,

gardens, lakes, hills, railway stations, airports, jail for action

scenes, courtroom, swimming pools, etc.)

• Set-creation workshops with all facilities and materials (such as

wood, plaster-of-paris, metal, etc.), for recreating different styles of

sets, and also for improvisation of ready-made sets and backlots

• Hi-tech laboratories, with production facilities for sound, lighting,

editing, animation, dubbing, etc.

• Production equipment such as cameras, special lenses, filters,

Betacam, Digibeta, studio cameras, studio monitors, and a full

range of other video and lighting equipment and accessories



(including wind and smoke / fog making machines, etc.), as also

film equipment such as motion control and travelling matte

equipment, cranes, etc.

• Availability of technical talent for a wide range of production

requirements

• Services such as production / logistics support and scouting,

to cater to specific needs, such as help required for customs co-

ordination, faster cargo shipment, administrative tasks such as

government permission to shoot in distant locales, logistics for

transportation of sets / equipment, etc., and also for scouting for

exotic locales within India

• Facilities such as Prop Shop, where different kinds of props would

be available, for use in sets

Post Production Facilities:

• Processing: Facilities such as for negatives processing,

projection, grading, positive prints, etc.

• Editing: Facilities such as Steenbeck, non-linear editing, etc.

• Digital Film facilities such as noise reduction, scratch removal,

colour correction, scanning / recording, restoration, etc.

• Audio facilities such as track laying, music scoring, restoration,

etc.

Other Facilities:

• Accommodation facilities (hotels, etc.) – both luxury and budget

accommodation

• Travel Agency for domestic and international travel bookings,

airport pickups, car rentals, etc.

• Communication department to ensure smoother and faster

communication facilities to provide film makers a hassle-free

environment to shoot


Project Concept Note: Ma-9 Development of Filmcity in Rajasthan

Page 5


• Separately designed office complex for the production team. This

complex would have state-of-the-art communication facilities and

other infrastructure

• Conferencing facilities including conference rooms, state-of-the-

art presentation systems, tele-conferencing facilities, and

advanced communication support systems

• Scope for creative theme parties against various backdrops

The filmcity could be set up at any of the major cities of Rajasthan

(such as for instance Jaipur or Jodhpur, etc.), which offer scope for

being developed as centres for film-making.

A detailed study to develop the project concept further would need to

be undertaken, to also firm up the location for the filmcity. The concept

would require government support for implementation, which could be

through an equity stake in the form of land or by giving land on long-

term lease.



Gas Link for Bhiwadi

Ma - 10

Project Concept Note: Ma-10 Gas Link for Bhiwadi Page 2

Project Background Natural gas is a combustible, gaseous mixture of simple hydrocarbon

compounds that is usually found in deep underground reservoirs

formed by porous rock. In terms of end user industries, the fertiliser

sector consumes about 36% of the total gas supply whereas power

sector consumes about 37%. The remaining consumption is

accounted for by other sectors like sponge iron, etc.

In Rajasthan, gas infrastructure has primarily been set-up by GAIL

(India) Ltd. It is also proposed to create a gas grid in Rajasthan for

facilitating the supply of fuel for industrial and economic development

in the state. The gas grid would be a critical infrastructure for the

development of the gas industry and would form the backbone of the

gas industry that would develop in near future. Exhibit below depicts

the existing gas pipeline infrastructure in Rajasthan.



GAIL currently has two major pipelines passing through Rajasthan.

The first pipeline is the HBJ pipeline that crosses the districts of Kota,

Baran, Dhaulpur and Bharatpur in Rajasthan and supplies gas to

major fertiliser and power units located in these districts. HBJ has a

handling capacity of 33.4 MMSCMD. There is an additional pipeline

from Bijaipur (Madhya Pradesh) of 175 km length that supplies gas to

NTPC Anta in Baran and Chambal Fertilisers in Kota. The total HBJ

network within Rajasthan is 232 km.

The second major pipeline is the Jamnagar Loni pipeline that

transports LPG. GAIL operates 600 km of this pipeline in Rajasthan,

the total pipeline length being 1274 km. The company supplies 0.4

MMTPA of LPG to four bottling plants of IOCL, HPCL and BPCL at

Ajmer and Jaipur. The pipeline passes through the districts of Sirohi,

Pali, Ajmer, Jaipur and Alwar and has booster stations at Abu Road,

Ajmer and Jaipur. GAIL also has a pipeline of 67 km length, from

Tanot to Ramgarh thermal power plant in Jaisalmer. The total

involvement of GAIL in Rajasthan is presented in Exhibit below.

Particulars Year 2000 Year 2003

Gas Supply (MMSCMD) 4.02 4.02

Gas Pipeline Network (km) 232 232

LPG Pipeline Network (km) 0 600

LPG Cylinders Per Day 0 77000

Total Investments (Rs. Crore) 200 800

Gas Link to Bhiwadi Bhiwadi is located in Alwar district, at a distance of about 70 km from

Delhi, on the Delhi-Jaipur National Highway-8. Bhiwadi has grown as

an industrial area town since 1976-77, when it was established with

the assistance of Rajasthan State Industrial and Investment

Corporation Ltd. (RIICO). Bhiwadi is part of the National Capital

Region (NCR), which comprises the region around and including

Delhi, and covers parts of the states of Haryana, Rajasthan and Uttar

Pradesh. Within the NCR, Bhiwadi plays an important role in the



economic development of Rajasthan as well as in decongesting Delhi

and Gurgaon.

RIICO has developed Bhiwadi in phases, and at present there are

about 1100 small and medium sized units comprising of automobiles,

chemicals, paints, drugs, pharmaceuticals and food products. The

main industrial areas within the Bhiwadi regions consist of Bhiwadi

town, Kushkhera and Chopanki. The Bhiwadi industrial area is

strategically located in the NCR region and its proximity to the large

markets of the northern region makes it an ideal location for attracting

industrial investments. In the recent past there has been considerable

interest shown by investors in investing in the region.

A large number of initiatives have been planned and developed for the

Bhiwadi region. These include the following:

• Development of a multi-modal logistics centre (Dry Port) in

Bhiwadi region

• Export Promotion Industrial Park at Tapukra

• Special Economic Zone at Chopanki area

• Integrated Utility Management of Bhiwadi

In light of the above facts it is proposed to “Establish a Gas Link to

Bhiwadi”. The gas link would be created by constructing an additional

spur line from HBJ for industrial units in Bhiwadi. This gas link would

provide natural gas as fuel and spur further economic activity in the

region. Further, gas is a cheaper and greener fuel as compared to

other conventional energy sources and with rich deposits estimated in

Rajasthan, its supply is guaranteed for next couple of decades.

Exhibit below depicts the HBJ infrastructure in India.


Project Concept Note: Ma-10 Gas Link for Bhiwadi

Page 5

As is evident, spur lines from HBJ have been created to meet

industrial demand for Agra, Mathura and Faridabad. Further, other

spur lines have also been created for feeding Maruti in Gurgaon and

other units in NCR region. Thus, creating the gas link from HBJ to

Bhiwadi would make the industries in this region competitive and at

par with other industrial units in the NCR region. The potential drivers

for gas demand in Bhiwadi are:

• Relative economics of gas based power generation

• Potential demand by residential and commercial sectors

• Gas use in transport sector.

The state should initiate discussions with GAIL in terms of creating a

spur line for Bhiwadi. The government must also prepare a white

paper in terms of estimating the end user demand and future

consumption of gas in Bhiwadi region.


manufacturing.pdf

Documents

intial screening

initial screening

integrated

foreign exchange

logistically

management

attracting

specific integrated