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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
Rajasthan Infrastructure Agenda “2025”
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.
Rajasthan Infrastructure Agenda “2025”
Page 2Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
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.
Rajasthan Infrastructure Agenda “2025”
Page 3Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
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
Rajasthan Infrastructure Agenda “2025”
Page 4Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
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.
Rajasthan Infrastructure Agenda “2025”
Page 5Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
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%
Rajasthan Infrastructure Agenda “2025”
Page 6Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
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.
Rajasthan Infrastructure Agenda “2025”
Page 7Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
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
Rajasthan Infrastructure Agenda “2025”
Page 8Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
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
Rajasthan Infrastructure Agenda “2025”
Page 9Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
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.
Rajasthan Infrastructure Agenda “2025”
Page 10Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
• 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.
Rajasthan Infrastructure Agenda “2025”
Page 11Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
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.
Rajasthan Infrastructure Agenda “2025”
Page 12Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
• 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.
Rajasthan Infrastructure Agenda “2025”
Page 13Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
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)
Rajasthan Infrastructure Agenda “2025”
Page 14Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
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
Rajasthan Infrastructure Agenda “2025”
Page 15Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
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
Rajasthan Infrastructure Agenda “2025”
Intial Screening Report (Ma - 1) Testing and Common facilities for Ceramic Industry
Page 16
Rajasthan Infrastructure Agenda “2025”
• Establishment contractual arrangements with Industry
Association, including disbursement and monitoring
mechanism.
Rajasthan Infrastructure Agenda “2025”
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.
Project Objectives and Scope
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.
Project Demand Drivers
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.
Project cost estimate
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.
Project Risk Assessment
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.
Project Implementation structure
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
Rajasthan Infrastructure Agenda “2025”
Page 2Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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
Rajasthan Infrastructure Agenda “2025”
Page 3Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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
Rajasthan Infrastructure Agenda “2025”
Page 4Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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
Rajasthan Infrastructure Agenda “2025”
Page 5Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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.
Rajasthan Infrastructure Agenda “2025”
Page 6Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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.
Rajasthan Infrastructure Agenda “2025”
Page 7Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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
2. Project Beneficiaries.
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:
Rajasthan Infrastructure Agenda “2025”
Page 8Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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.
Rajasthan Infrastructure Agenda “2025”
Page 9Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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.
Rajasthan Infrastructure Agenda “2025”
Page 10Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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
Rajasthan Infrastructure Agenda “2025”
Page 11Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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
Rajasthan Infrastructure Agenda “2025”
Page 12Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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
Rajasthan Infrastructure Agenda “2025”
Page 13Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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
Rajasthan Infrastructure Agenda “2025”
Page 14Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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
Rajasthan Infrastructure Agenda “2025”
Page 15Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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.
Rajasthan Infrastructure Agenda “2025”
Page 16Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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
Rajasthan Infrastructure Agenda “2025”
Page 17Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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
Rajasthan Infrastructure Agenda “2025”
Page 18Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
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
7. Assessment of Project Risks.
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
Rajasthan Infrastructure Agenda “2025”
Initial Screening Report (Ma – 2) International Trade Centre at Jaipur
Page 19
Rajasthan Infrastructure Agenda “2025”
require a number of actions on part of the State Government which
are highlighted in the earlier sections.
Rajasthan Infrastructure Agenda “2025”
Initial Screening Report for
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.
Rajasthan Infrastructure Agenda “2025”
Page 2Initial Screening Report (Ma – 3) Recycling of Marble Slurry at Udaipur
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.
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Page 3Initial Screening Report (Ma – 3) Recycling of Marble Slurry at Udaipur
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.
2. Project Beneficiaries.
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
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Page 4Initial Screening Report (Ma – 3) Recycling of Marble Slurry at Udaipur
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
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Page 5Initial Screening Report (Ma – 3) Recycling of Marble Slurry at Udaipur
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
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Page 6Initial Screening Report (Ma – 3) Recycling of Marble Slurry at Udaipur
Besides demand in building material, there has been successful
attempts made by tyre industry for using marble dust as an inert filler.
4. Project Components and Cost Estimates.
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
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Page 7Initial Screening Report (Ma – 3) Recycling of Marble Slurry at Udaipur
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%
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Page 8Initial Screening Report (Ma – 3) Recycling of Marble Slurry at Udaipur
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
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Page 9Initial Screening Report (Ma – 3) Recycling of Marble Slurry at Udaipur
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.
6. Suggested Project Structure and Government Support Required
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
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Page 10Initial Screening Report (Ma – 3) Recycling of Marble Slurry at Udaipur
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
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Page 11Initial Screening Report (Ma – 3) Recycling of Marble Slurry at Udaipur
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.
7. Assessment of Project Risks.
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Initial Screening Report (Ma – 3) Recycling of Marble Slurry at Udaipur
Page 12
Rajasthan Infrastructure Agenda “2025”
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.
Rajasthan Infrastructure Agenda “2025”
Initial Screening Report for
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
Project Objectives and Scope
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
Project Demand Drivers
The existing water requirement of industries is approximately 18 MLD and 4 MLD is required by the new growth centre in Hamirgarh
Project cost estimate
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
Project Risk Assessment
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.
Project Implementation structure
The state needs to ensure co-ordination between the industry associations and government department to set-up the CETP and Industrial Water Supply project
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Page 2Initial Screening Report (Ma – 4) Industrial Projects - Bhilwara
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.
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Page 3Initial Screening Report (Ma – 4) Industrial Projects - 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.
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Page 4Initial Screening Report (Ma – 4) Industrial Projects - Bhilwara
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.
2. Project Beneficiaries.
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:
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Page 5Initial Screening Report (Ma – 4) Industrial Projects - Bhilwara
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
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Page 6Initial Screening Report (Ma – 4) Industrial Projects - Bhilwara
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
Rajasthan Infrastructure Agenda “2025”
Page 7Initial Screening Report (Ma – 4) Industrial Projects - Bhilwara
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.
4. Project Components and Cost Estimates.
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
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Page 8Initial Screening Report (Ma – 4) Industrial Projects - Bhilwara
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.
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Page 9Initial Screening Report (Ma – 4) Industrial Projects - Bhilwara
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)
Rajasthan Infrastructure Agenda “2025”
Page 10Initial Screening Report (Ma – 4) Industrial Projects - Bhilwara
• 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.
6. Suggested Project Structure and Government Support Required
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.
Rajasthan Infrastructure Agenda “2025”
Page 11Initial Screening Report (Ma – 4) Industrial Projects - 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.
7. Assessment of Project Risks.
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
Rajasthan Infrastructure Agenda “2025”
Initial Screening Report (Ma – 4) Industrial Projects - Bhilwara
Page 12
Rajasthan Infrastructure Agenda “2025”
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.
Rajasthan Infrastructure Agenda “2025”
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.
Project Objectives and Scope
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.
Project Demand Drivers
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.
Project cost estimate
The total cost of the project is estimated to be Rs. 4950 lakh.
Project Risk Assessment
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.
Project Implementation structure
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.
Rajasthan Infrastructure Agenda “2025”
Page 2Initial Screening Report (M a – 5) Integrated Utility Management of Bhiwadi
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,
Rajasthan Infrastructure Agenda “2025”
Page 3Initial Screening Report (M a – 5) Integrated Utility Management of Bhiwadi
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.
Rajasthan Infrastructure Agenda “2025”
Page 4Initial Screening Report (M a – 5) Integrated Utility Management of Bhiwadi
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.
Rajasthan Infrastructure Agenda “2025”
Page 5Initial Screening Report (M a – 5) Integrated Utility Management of Bhiwadi
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
Rajasthan Infrastructure Agenda “2025”
Page 6Initial Screening Report (M a – 5) Integrated Utility Management of Bhiwadi
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.
Rajasthan Infrastructure Agenda “2025”
Page 7Initial Screening Report (M a – 5) Integrated Utility Management of Bhiwadi
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
Rajasthan Infrastructure Agenda “2025”
Page 8Initial Screening Report (M a – 5) Integrated Utility Management of Bhiwadi
• 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.
Rajasthan Infrastructure Agenda “2025”
Page 9Initial Screening Report (M a – 5) Integrated Utility Management of Bhiwadi
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
Rajasthan Infrastructure Agenda “2025”
Page 10Initial Screening Report (M a – 5) Integrated Utility Management of Bhiwadi
Rajasthan Infrastructure Agenda “2025”
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
Page 11Initial Screening Report (M a – 5) Integrated Utility Management of Bhiwadi
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
Rajasthan Infrastructure Agenda “2025”
Page 12Initial Screening Report (M a – 5) Integrated Utility Management of Bhiwadi
• 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
Rajasthan Infrastructure Agenda “2025”
Initial Screening Report (M a – 5) Integrated Utility Management of Bhiwadi
Page 13
Rajasthan Infrastructure Agenda “2025”
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.
Rajasthan Infrastructure Agenda “2025”
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
Rajasthan Infrastructure Agenda “2025”
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.
Project Objectives and Scope
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.
Project Demand Drivers
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.
Project Risk Assessment
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.
Project Implementation structure
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.
Initial Screening Report (Ma – 6) Industrial Water Supply for Jaipur
Page 2
Rajasthan Infrastructure Agenda “2025”
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.
Initial Screening Report (Ma – 6) Industrial Water Supply for Jaipur
Page 3
Rajasthan Infrastructure Agenda “2025”
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
Initial Screening Report (Ma – 6) Industrial Water Supply for Jaipur
Page 4
Rajasthan Infrastructure Agenda “2025”
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.
Initial Screening Report (Ma – 6) Industrial Water Supply for Jaipur
Page 5
Rajasthan Infrastructure Agenda “2025”
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
Initial Screening Report (Ma – 6) Industrial Water Supply for Jaipur
Page 6
Rajasthan Infrastructure Agenda “2025”
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.
Initial Screening Report (Ma – 6) Industrial Water Supply for Jaipur
Page 7
Rajasthan Infrastructure Agenda “2025”
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
Initial Screening Report (Ma – 6) Industrial Water Supply for Jaipur
Page 8
Rajasthan Infrastructure Agenda “2025”
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
Initial Screening Report (Ma – 6) Industrial Water Supply for Jaipur
Page 9
Rajasthan Infrastructure Agenda “2025”
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.
Initial Screening Report (Ma – 6) Industrial Water Supply for Jaipur
Page 10
Rajasthan Infrastructure Agenda “2025”
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.
Initial Screening Report (Ma – 6) Industrial Water Supply for Jaipur
Page 11
Rajasthan Infrastructure Agenda “2025”
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
Initial Screening Report (Ma – 6) Industrial Water Supply for Jaipur
Page 12
Rajasthan Infrastructure Agenda “2025”
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.
Initial Screening Report (Ma – 6) Industrial Water Supply for Jaipur
Page 13
Rajasthan Infrastructure Agenda “2025”
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
Initial Screening Report (Ma – 6) Industrial Water Supply for Jaipur
Page 14
Rajasthan Infrastructure Agenda “2025”
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.
Rajasthan Infrastructure Agenda “2025”
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
Rajasthan Infrastructure Agenda “2025”
Project Concept Note: Ma-7 Development of Rewari-Bhiwadi Rail Link
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).
Rajasthan Infrastructure Agenda “2025”
Project Concept Note: Ma-7 Development of Rewari-Bhiwadi Rail Link
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
Rajasthan Infrastructure Agenda “2025”
Project Concept Note: Ma-7 Development of Rewari-Bhiwadi Rail Link
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:
Rajasthan Infrastructure Agenda “2025”
Project Concept Note: Ma-7 Development of Rewari-Bhiwadi Rail Link
Page 6
Rajasthan Infrastructure Agenda “2025”
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.
Rajasthan Infrastructure Agenda “2025”
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
Rajasthan Infrastructure Agenda “2025”
Concept Note (Ma-8) Jaisalmer Sanu Railway Line
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
Rajasthan Infrastructure Agenda “2025”
Concept Note (Ma-8) Jaisalmer Sanu Railway Line
Page 3
Rajasthan Infrastructure Agenda “2025”
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.
Rajasthan Infrastructure Agenda “2025”
Project Concept Note On
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.
Rajasthan Infrastructure Agenda “2025”
Project Concept Note: Ma-9 Development of Filmcity in Rajasthan Page 3
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
Rajasthan Infrastructure Agenda “2025”
Project Concept Note: Ma-9 Development of Filmcity in Rajasthan Page 4
(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
Rajasthan Infrastructure Agenda “2025”
Project Concept Note: Ma-9 Development of Filmcity in Rajasthan
Page 5
Rajasthan Infrastructure Agenda “2025”
• 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.
Rajasthan Infrastructure Agenda “2025”
Project Concept Note On
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.
Rajasthan Infrastructure Agenda “2025”
Project Concept Note: Ma-10 Gas Link for Bhiwadi Page 3
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
Rajasthan Infrastructure Agenda “2025”
Project Concept Note: Ma-10 Gas Link for Bhiwadi Page 4
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.
Rajasthan Infrastructure Agenda “2025”
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.
Rajasthan Infrastructure Agenda “2025”