Manufacturing PDF

Table of Contents
Volume IV, KD4
Project No. Ma 1
Project Title
Page Nos
Establishment of Testing and Common facilities Centre for Ceramic Industry in Bikaner Setting up of an International Trade Centre at Jaipur Recycling of Marble Slurry at Udaipur Industrial Water Supply in Bhilwara and Setting-up Common Effluent Treatment Plant at Bhilwara Integrated Utility Management of Bhiwadi Industrial Water Supply in Jaipur Additional Project Ideas Brief Description* Development of Rewari-Bhiwadi Rail Link Jaisalmer-Sanu Railway Line Development of Filmcity in Rajasthan Gas Link for Bhiwadi
1 - 15
Ma 2
1 - 18
Ma 3
1 - 12
Ma 4
1 12
Ma 5 Ma 6 Ma 7 Ma 8 Ma 9 Ma10
1 14 1-15 1-6 1-4 1-5 1-5
* Based on final round of discussions with government department and key stakeholders
Rajasthan Infrastructure Agenda 2025
Project Profiles - Manufacturing
V I S I O N 2 0 2 5
Key Deliverable 4 (Volume IV) September 2003
Ma - 1
Initial Screening Report for Establishment of Testing and Common facilities Centre for Ceramic Industry in Bikaner
Intial Screening Report (Ma - 1)
Testing and Common facilities for Ceramic Industry
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Top Sheet for ISR: Establishment of testing and common facilities centre for ceramic industry in Bikaner
Title
Background
Description
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 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. 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. 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. The total cost of the project is estimated to be Rs. 249.32 lakh 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 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. Demand for the facility in the region is major risk. Technology transfer related to kilns 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 Through partial equity stake from the industry association in Bikaner, and through funding support from GoIs ASIDE programme, the project could be sustainably implemented.
The Project
Project Objectives and Scope
Project Demand Drivers Project cost estimate Annual revenue streams and revenue sources Operating expenses Project Risk Assessment Project Viability
Project Implementat ion structure
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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 Indias 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.
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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 1 2 Type of Industry Plaster of Paris Glaze wall tiles, sanitary wares and pipes 3 4 Clay Grinding Insulators 22 6 Number of Units 57 26
Source: District Industries Centre, Bikaner
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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.
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3.
Demand.
Indias 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%
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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 smallscale 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.
Testing and Common facilities for Ceramic Industry Project Description and Cost Estimates.
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4.
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 1 2
Equipment/ Facilities Required Chemical and mineralogical analysis of silicate minerals Testing bulk density, specific gravity, hardness, viscosity and particle size analysis
Testing plasticity, green shrinkage, fired shrinkage and vitrification behaviour, porosity, water absorption and Crazing test
4 5
X-ray diffraction and study of microstructure Facilities for processing and shaping like crushing, grading, blending dewatering, palletizing, vacuum extrusion, Isostatic pressing
Kiln for firing upto 1700 degree under normal and controlled atmosphere
Test of reactivity with acids and bases and staining and scratch resistance
8 9
High voltage testing for insulators as per IS standards Mechanical strength testing for insulators
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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 1 2
Equipment/ Facilities Required Testing facilities for Ceramics Common production center and kilns of capacities between 1 cubic metre to 5 cubic metre
Cost Rs. 100 lakh Rs. 80 lakh
Common infrastructure such as Land and building
Rs. 35 lakh
4 5
Library facilities Technology transfer and advisory services
Rs.10 lakh Rs. 15 lakh
Interest During Construction (IDC) Total cost
9.32 lakh Rs. 249.32 lakh
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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 1 2 3 4 5
Expenses item Staff cost Operation of testing lab Operation of kilns Other expenses Interest cost Total operating cost
Amount Rs. 5.75 lakh Rs. 11.92 lakh Rs. 8 lakh Rs. 3 lakh Rs. 18.65 lakh 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.
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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 1 2 3 4 5 Revenue item Testing of electrical products Testing of other products Certification for export purposes Raw material testing Advisory services for retrofitting and setting-up of kilns 6 Training Total operating income Rs. 1 lakh Rs. 38.04 lakh Amount Rs. 12 lakh Rs. 2.9 lakh Rs. 10.6 lakh Rs. 2 lakh Rs. 9.54 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.
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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.
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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.
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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)
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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
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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
Testing and Common facilities for Ceramic Industry Establishment contractual arrangements with Industry Association, including disbursement and monitoring mechanism.
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Ma - 2
Initial Screening Report for Setting up of an International Trade Centre at Jaipur
Initial Screening Report (Ma 2)
International Trade Centre at Jaipur
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Top Sheet for ISR: International Trade Centre

Title Background Description 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. An International Trade Mart is proposed in Rajasthan, which can serve as a common, logistically convenient & world-class meeting point for exporters based in Rajasthan and for importers. The project envisages setting of an International Trade Mart at Jaipur consisting of permanent display showrooms, exhibition area for holding fairs and other events, centrally air-conditioned, warehousing space - for occupants to the extent of around 10% of showroom space, Adequate parking space - cater to peak requirement, multi-cuisine restaurant-cum-bar, common business facilities, secretarial services, trade information - directories, contact addresses, etc and adequate, round-the-clock security. The demand for an International Trade Mart is based upon the need for a nodal point of interaction between the importers and the exporters in the cottage sector, for creating a logistically convenient point of display for cottage sector export products as the exporters are dispersed across various locations; and to provide an affordable marketing medium to the exporters in the cottage sector; It is estimated that on an average, it costs more than Rs. 2.5 lakh to participate in the two annual handicrafts fairs (which last for only 4 days each) - these exporters find participation in trade fairs a costly affair and want a suitable, permanent alternative. The project is estimated to cost approximately Rs. 38.85crore The project can be undertaken under a public private partnership basis. As a matter of fact it should only be undertaken under such a partnership for ensuring success. There is limited demand and implementation risk associated with the project. The project provides for an IRR of 16% under base case scenario. To be implemented through a nodal export promotion agency of the state along with government support. Government can provide support to the scheme by looking at implementing the project under ASIDE scheme of GoI
The Project
Project Demand Drivers
Project cost estimate Opportunitie s for private sector Project Risk Assessment Project Viability Project Implementat ion structure
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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
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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 GoIs 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
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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. 1 Product Category Art Metal Major Concentration Areas Moradabad, Sambhal, Aligarh, Jaipur, Jodhpur, Barmer, Delhi, Rewari, Thanjavur, Chennai, Manadeep, Beedar, Jagadhari and Jaisalmer Saharanpur, Nagina, Jaipur, Jodhpur, Barmer, Hoshiarpur, Srinagar, Amritsar, Jagdalpur, Bangalore, Mysore, Chennapatna, Chennai, Mandap, Behrampur, Ahmedabad and Rajkot. Jaipur, Barmer, Bagru, Sanganer, Jodhpur, Bhuj, Farrukahabad and Amroha Barmer, Jodhpur, Jaipur, Jaisalmer, Kutch, Ahmedabad, Lucknow, Agra, Amritsar, Kullu, Dharmshala and Srinagar. Agra, Chennai, Bastar and Jodhpur Kashmir and Jaipur Jaipur, Barmer, Chennai, Bastar, Surat, Bareilly, Varanasi, Amritsar and Agra Delhi, Moradabad, Sambhal, Jaipur and Kohima Kolhapur, Indore, Barmer and Shanti Nekatan Surat, Mumbai and Jaipur Varanasi, Bhadohi, Gopiganj, Khamaria, Ghosia, Madhosingh, Mirzapur, Agra, Shahjahanpur, Srinagar, Baramulla, Jaipur, Bikaner and Tonk
Wooden Artwares
3 4
Handprinted Textiles Ebroidered goods
5 6 7 8 9 10 11
Marble and Soft Stone Crafts Papier Mache Crafts Terracotta Zari and Zari Goods Imitation / Fashion Jewellery Artistic Leather Goods Gems and Jewellry Carpets
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
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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 setup 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.
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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 restaurantcum-bar, Common business facilities, Secretarial services, Trade information - directories, contact addresses, etc and Adequate, roundthe-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.
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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:
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A wide variety of products which include Handicrafts, Carpets, Readymade 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.
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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.
International Trade Centre at Jaipur Demand.
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3.
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
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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
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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
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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
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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.
Project Cost related Assumptions
Unit Land Cost (10 acres) Total Construction costs Unit Cost of EXHIBITION HALL & AUDITORIUM SPACE Unit Cost of MART BUILDING Unit Cost of CENTRAL FUNCTION BUILDING Unit Cost of BASEMENT Costs for Extenal Land Development & CONTINGENCIES Unit External Development Costs Total External Land Development costs Contingencies Other Capital costs-Lumpsum Costs for Vehicles and Machinery Staff Cost including training Reistration etc. Operation & Maintenance Advertising & Promotion expenses PMC & Other Consultancy Services 670 Rs. /sq.mt. 18000.00 Rs/sq.mt. 12000.00 Rs/sq.mt. 12000.00 Rs/sq.mt. 7500.00 Rs/sq.mt. 15.00 Rs Lacs/Acre 150.00 Rs. Lacs 5% of Total cost 25.00 50.00 150.00 150.00 240.00 150.00 Rs. Lacs Rs. Lacs Rs. Lacs Rs. Lacs Rs. Lacs Rs. Lacs
Operating cost related Assumptions

Operating costs Annual maintenance costs Salaries and wages Annual Advertising & Promotion expenses for the Base Year Annual growth rate in Advertising and promotion expenses 700.00 12.5% 15.00 5% Rs/sq.mt./yr of Total optg costs Rs. Lacs per annum
Assumptions pertaining to the Financial Strategy

Debt Equity Ratio Debt Equity Ratio Cost of Equity Tax rates Tax Rate Term loan Tenure of long term loans Moratorium period on term loans RoI on Term loans Depreciation Rate of Depreciation Total Project Cost 1.00 18% 35% 7 years 2 years 12.0% 5%
3,885.45
Assumptions pertaining to macro-economy& project phasing

Annual rate of Inflation PROJECT PHASING % of project completion in each year 6% BY 50% BY+1 50%
Assumption pertaining to Areas in the Theme Park

Total area of the Theme Park in Acres Total area of the Mart Exhibition area Total built-up EXHIBITION area % of the total Exhibition area to be used for Display Total built-up AUDITORIUM area Showroom/Mart area Total built-up SHOWROOM area % of Built up SHOWROOM area to sold Area of each SHOWROOM Other areas Total area of the BASEMENT Total area of CENTRAL FUNCTION BUILDING (Office space/Restaurants/Banquet hall etc) No. of SHOWROOMS Area of RESTAURANT/SHOPS etc. 10 40000 sq. mtrs. Acres
5000 sq.mt. 100% of exhibition area 2500 sq.mt. 7200 sq.mt. 51% of showroom area 24 sq.mt. 900 sq.mt. 900 sq.mt. 153 900 sq.mt.
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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:
Assumption pertaining to Sale Prices and other Revenue streams
Exhibition area, Office space etc. Average Exhibition Hall rent Average No. of Exhibition days in the first year Annual increase in daily usage of Exhibition halls Auditorium Space Average daily rent from auditorium Average No. of days booked in Auditorium in the first year Annual increase in no. of days booked in auditorium Showroom/Mart area % of showrooms sold % of showroom let out on lease rentals Unit Sale Price of a SHOWROOM Sale value for REGULAR SHOWROOM showroom Annual lease rentals for SHOWROOMS Recovery schedule from the sale of showrooms Revenue recovery schedule Resaurant/Shop area Average Lease Rental for RESTAURANT/SHOPS etc. 180 Rs./sq. mtr./day 16 days 2 days 350,000 Rs./day 40 days 10 days 70% 30% 5000 Rs./sq.ft. 12.91 Rs lacs 4000.00 Rs/sq. mt. BY BY+1 50% 50% 4000 Rs./sq.mtr./yr.
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.
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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
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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
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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
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require a number of actions on part of the State Government which are highlighted in the earlier sections.
Ma - 3
Initial Screening Report for Recycling of Marble Slurry at Udaipur
Recycling of Marble Slurry at Udaipur
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Top Sheet for ISR: Recycling of Marble Slurry

Title Background Description 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 Opportunitie s for private sector Project Risk Assessment Project Viability 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. The project cost is estimated at approximately Rs.12.65 lacs 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. The most important risk this project faces is demand risk which can be mitigated by providing indirect government support. The project is viable if the demand risk is suitably mitigated.
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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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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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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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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 1 Products Name and Addresses of the Institutes
Tiles with 50 % marble dust and jute Regional Research fibre bound with resin. Tiles have also Laboratory, Bhopal been made with marble dust with C. S. I. R. Hoshangabad cement bonding. Door panels made out of marble slurry have also been made. This product can also be used as a wood substitute. Tiles made with marble dust upto 90% bound with resins. Macro Molecular Research Centre, Rani Durgavati University, Jabbalpur
Their preliminary work has suggested Central Road Research that marble slurry can be used for road Institute, New Delhi making exercises. Building bricks have been developed using marble slurry. Possibilities of using this waste for cement making are being explored in NCCBM. Fired tiles incorporating marble slurry/dust have been developed. Central Building Research Institute, New Delhi National Council for Cement And Building Materials, Haryana Central Glass and Ceramic Research Institute, Ahmedabad
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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
Recycling of Marble Slurry at Udaipur : Dry mixing with cement as accelerator Use of roller grinder for paste preparation High pressure brick molding press
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Manufacturing Process
The project is estimated to cost in the region of Rs.12.65 Lacs, as per the breakup given below: Land and Building: land Shed: 400 sq. ft @Rs.225 / sq. ft Tube Well and Boundary Wall 710000 600000 90000 120000 300000
Plant and Machinery: Moulds Mixer Block Making Machine
Miscellaneous Fixed Assets: Preoperative Expenses Margin Money for Working Capital
25000 60000 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% Total 5. Project Economics. 11500 1265000
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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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 Producti on waste @ 2% Saleable Quantity Rate Sales
Bricks Tree Guard Solid Blocks Hollow Blocks Toilet Unit Pavement Blocks
100 25 37.50 37.50 50 50
6000 6000 2000 2000 0.72 6000
600000 150000 75000 75000 36 300000
420000 105000 52500 52500 25.2 210000
8400 2100 1050 1050 0.2 4200
411600 102900 51450 51450 25 205800
1.3 250 4.5 3 3500 1.25
535080 233750 231525 154350 87500 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 @70%
Utilization
Monthly Capacity Utilization
Bricks Tree Guard Solid Blocks Hollow Blocks Toilet Unit Pavement Blocks
3.01 2.75 8.9 7 5200 2.25
600000 150000 75000 75000 36 300000
18006000 412500 667500 5255000 187200 675000
1264200 288750 467250 367500 131040 472500
105350 24062.50 38937.50 30625 10920 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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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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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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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 Indias 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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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.
Ma - 4
Initial Screening Report for

1. Setting-up Common Effluent Treatment Plant and 2. Industrial Water Supply in Bhilwara
Industrial Projects - Bhilwara
Page 1
Top Sheet for ISR: Industrial Projects Bhilwara

Title Background Description 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. It is proposed to set-up an Industrial Water Supply Project and Common Effluent Treatment Plant (CETP) for Bhilwara The two industrial projects are aimed at meeting the water requirements of the existing 27 units in Bhilwara besides reducing the effluent discharge level to within prescribe limits The existing water requirement of industries is approximately 18 MLD and 4 MLD is required by the new growth centre in Hamirgarh The project is estimated to cost Rs. 20.9 crore The cost of transportation of treated water, tertiary treatment & CETP should be shared by the industry and municipality. The CETP should be run by the industry association There is construction risk involved in CETP as the processing units are located in different regions. Also water may not be enough to draw for industrial purpose from the drinking water supply scheme. The project can be made viable and set up by the state by seeking assistance from centre under its various schemes for textile sector. The state needs to ensure co-ordination between the industry associations and government department to set-up the CETP and Industrial Water Supply project
The Project
Project Objectives and Scope Project Demand Drivers Project cost estimate Opportunities for private sector Project Risk Assessment
Project Viability
Project Implementation structure
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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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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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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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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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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
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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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BOD COD Suspended Solid Ammoniacal Nitrogen Total Phosphates Sulphates TDS Ph Effluent Quality
: : : : : : : :
up to 300 mg/l up to 700 mg/l up to 600 mg/l up to 35 mg/l as N up to 16 mg/l as P 30-130 mg/l upto 1000 mg/l 7.2 7.9
The STP will be designed to achieve the following treated sewage quality standards: BOD Total Suspended Solids 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. : : 30 mg/l or less 50 mg/l or less
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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 Chittor Road Industry Effluent Udaipur Road Industry Effluent Total Effluent Quantity 6 MLD 1.5 MLD 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)
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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 cosponsor 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.
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The state can also seek assistance from the centre under its various schemes for textile sector. The central governments 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 Governments 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 crche 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
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which highlights that there would be water available after meeting the drinking water requirements.
Implementation Risk: The project success would depend largely on the governments 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.
Ma - 5
Initial Screening Report For Integrated Utility Management of Bhiwadi
Initial Screening Report (M a 5)
Integrated Utility Management of Bhiwadi
Page 1
Top Sheet for ISR: Integrated Utility Management of Bhiwadi

Title
Background
Description
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. Integrated utility management, including the following components: 1) System for wastewater and storm water disposal, 2) Sewerage system, 3) Solid waste management, 4) General Environmental Improvement, 5) Rainwater conservation, etc. The overall objective of integrated utility management project is to develop quality industrial infrastructure in Bhiwadi, so as to enhance the industrial potential of Bhiwadi by easing some of the constraints being faced by industrial units. Improper drainage and disposal of wastewater has resulted in water logging and contamination of groundwater and sub-soil. There is also no closed underground sewerage system in the town currently, and there is a requirement for a solid waste management system. The total cost of the project is estimated to be Rs. 4950 lakh. The main risks include availability of funds for design consultancy and implementation of works; land acquisition for major installations such as CETPs, pumping stations, secured landfill; capacity of the concerned authority to enter into an agreement with the private parties for installation of CETPs, etc. Private sector participation can be sought for some of the proposed services, especially for the construction of CETP and construction of secured landfill for hazardous waste disposal on DBO basis. A detailed bankable project report should be prepared by a consultant who can be given a lumpsum fee for preparing the bankable documents for posing to funding agencies. It is suggested that a Project Implementation Unit (PIU) be formed by drawing specialists in the fields of engineering, industrial waste management, health and environment, from the concerned departments. The PIU should be headed by a team leader who will co-ordinate the implementation of the design and implementation works / activities. A project implementation period of 18 months is suggested.
The Project
Project Objectives and Scope Project Demand Drivers
Project cost estimate Project Risk Assessment
Project Viability
Project Implementat ion structure
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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,
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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.
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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.
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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 PH TSS TDS BOD COD
Influent (mg/l) 6.6 6.8 115 - 128 1600 - 1750 192 - 217 562 - 588
Effluent for irrigation (mg/l) 5.5 - 9 < 200 < 2100 < 100 < 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
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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.
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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
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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.
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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 1 2 TOTAL Name of work Sewerage and drainage upgradation and municipal and hazardous waste management system Solid Waste Management Sum of 1-2 Estimated cost (Rs. Lakh) 4444 506 4950
The cost estimates for the individual components are presented in the tables below:
Cost of Sewerage, Drainage, and Solid Waste Management

S. No 1 2 TOTAL Name of work Cost of Sewerage & Drainage within Bhiwadi Cost of Municipal & Hazardous Waste Management System for both municipal as well hazardous waste from industries Sum of 1-2 Estimated cost (Rs. Lakh) 3938 506 4444
Cost of Sewerage and Drainage Systems

S. No 1 Name of work Cost of Detailed survey of Town preparation and sanction of scheme including telecommunication, photography, multi-media presentation, computerized designing etc. 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 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 Preparation of Digital maps and creation of GIS Estimated cost (Rs. Lakh) 10
2000
150
100
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Cost of Sewerage and Drainage Systems

S. No Name of work based system Cost of storm water drainage system in Bhiwadi Wastewater disposal of Chopanki to New CETP via Khushkhera Approx.- 8 km @ Rs. 5000/m incl. booster Pumping station Construction of New CETP (6 MLD) for Chopanki, Khushkhera near River Sabhi incl. EIA Plantation - LS Sum of 1-8 Add Contingency Charges @10% Total Estimated cost (Rs. Lakh) 500 400 400 20 3580 358 3938
5 6 7 8
Cost of Solid Waste Management (Disposal and Treatment)

S. No 1 2 3 Name of work Cost of Equipment (Details given below*) Cost of Processing & Disposal Plant (Municipal Land fill + Compost plant-30 MT/d) Secured landfill for Hazardous Waste Sum of 1-3 Add contingency charges @ 10% Total Estimated cost (Rs. Lakh) 60 350 50 460 46 506
S. No 1
DETAILS OF COST OF EQUIPMENT Equipment Estimated cost (Rs. Lakh) Mechanised vehicles for solid waste 18.03 transportation 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 Container and Equipments for Collection 41.77 of Solid Waste 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 4.70 nos.) Litter Bin (800 nos.) 7.90 Container for Domestic Hazardous Waste (20 0.50 nos.) Containerized Handcarts (250 nos.) 12.00 Containerized Tricycles (30 nos.) 2.27 Sum of 1-2 (approx.) 60
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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
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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 2. Construction of sewerage system - 6 months - 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
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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.
Ma - 6
Initial Screening Report for Development of Industrial Water Supply for Jaipur
Industrial Water Supply for Jaipur
Page 1
Title Background
The Project
Project Demand Drivers Project Cost Estimate Project Benefits
Project Risk Assessment
Project Implementati on structure
Description 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. This project seeks to meet the urgent need for water for industries located in Jaipur region, specifically for the Sitapura Industrial Area, by drawing water from the main Bisalpur-Jaipur water project through creation of a spur line and other infrastructure for water transmission to this industrial area. The project objective is to improve the water supply scenario for industries in Jaipur region. The options analysed are: Option A supply recycled water from STP to industries, Option B draw water from Bisalpur through creation of a spur line to Sitapura. Most industrial areas in Jaipur region already face a water shortage, and in areas such as Sitapura, there is a problem relating to water quality as well because of the high fluoride content of groundwater. 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. Supply of water to the Sitapura Industrial Area would ease the current problems relating to availability and quality of water for industrial use. This would thus provide a boost to the existing and proposed units in this industrial area. All risk factors that would affect the main Bisalpur project (such as tying up of funding sources, etc.) would also affect this project. In addition, an agreement between PHED and RIICO for sharing of Bisalpur water for industrial use needs to be formalised. The project could most likely be funded from JBIC / other financial institutions, as funding from these sources for the Part I of Phase I of Bisalpur is yet to be fully tied up. Another option is to obtain funds from the government budget allocation to the Industries Department. Yet another option is to recover a part of the cost from charging existing industrial units in these industrial areas / increasing the rates for plots to new units.
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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.
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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
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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 Draft Stage of development
53.34 m cum 143.98 m cum 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.

Water Demand (MLD) 0.75 0.61 0.57 0.41 0.37 0.31 3.02 5.18 1.51 0.65 1.62 0.52 9.49 0.81 3.00 1.29 0.75 0.37 0.43 6.65 1.74 0.90 2.83 0.44 1.64 0.15 7.69 26.85
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S. No 1 2 3
Name of Industrial Area Jaipur (South) Malviya Mansarovar Bassi (I & II)
Area under scheme (acres) 74.69 61.64 57.71 40.99 36.94 30.88 302.84 518.25 151.63 65.63 162.05 52.13 949.69 81.13 299.61 129.39 74.91 36.96 42.62 664.63 175.43 60.35 197.08 44.33 165.93 63.11 706.24
Water Supply (MLD) Gap (MLD) 0.59 0.45 0.34 As per demand, only one connection 0.34 0.23 1.95 3.64 1.14 0.34 0.57 0.34 6.02 0.14 0.18 0.09 0.09 0.14 0.64 0.72 0.57 0.72 1.44 3.45 12.07 0.15 0.16 0.23 NA 0.03 0.08 1.06 1.55 0.38 0.31 1.05 0.18 3.46 0.68 2.81 1.29 0.66 0.28 0.29 6.01 1.02 0.32 2.11 0.44 0.20 0.15 4.24 14.78
4 Bassi (Ext) 5 Hirawala 6 Hirawala (Ext) Total Jaipur (North) 1 VKIA I to V Phase 2 VKIA VI Phase & Ext 3 Sarna Dungar 4 Kaladera 5 Jetpura Total Jaipur (Rural) 1 Bindayaka (I & II) 2 Bagru (Ext & Phase II) 3 Bagru (Chhitroli) 4 Kukas 5 Manpur Mancheri 6 Shahpura Total Sitapura 1 Sitapura Phase I 2 Sitapura Ext 3 Sitapura Phase III 4 Sitapura Phase IV 5 EPIP 6 Institutional Area Total TOTAL
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.
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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 serviceoriented 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.
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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) JNN / JDA ARWSP Plan Budget Other FIs (JBIC, etc.)
Rs. 480 crore Rs. 30 crore Rs. 25 crore Rs. 45 crore 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
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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.
Project Configuration Bisalpur Water Supply

Main Transmission Line Diameter 1800 mm Configuration From Balawala to (just before) the Sanganer Railway Station
Industrial Water Supply for Jaipur Project Configuration Bisalpur Water Supply
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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%
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.
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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.
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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 offtake 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.
Just before Sanganer Railway Station
Spur line to Sitapura
Sitapura Phase I, IV, Ext
Main Bisalpur transmission line
Sitapura Phase III
Balawala
At Sitapura
EPIP
Reservoirs and Pumping Stations Reservoirs at Sitapura
S I T A P U R A
The cost estimates for option B is presented in the table below.
Summary of Cost Estimates

S. No Particulars Estimated cost (Rs. Lakh)
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Spur line to Sitapura 1 Reservoirs 2 Pumping Machinery 3 Spur line 4 Misc. and contingencies 5 Total
50 25 300 25 400
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.
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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
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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.
Ma - 7
Project Concept Note On Development of Rewari-Bhiwadi Rail Link
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
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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).
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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
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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:
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S. No. 1
Component Technical studies, including preferred option study, alignment studies and detailed feasibility studies
Rs. Lakh 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.
Ma -8
Concept Note on Jaisalmer Sanu Railway Line
Concept Note (Ma-8)
Jaisalmer Sanu Railway Line
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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 Indias mineral production are: 90% of Indias marble production 70% of Indias sandstone production 70% of Indias 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 Ball Clay Gypsum Limestone Siliceous Earth Granite Kankar Bajri Limestone (dimensional) Marble Masonry Stone 75 168 239 52 3 78 17 35.5 12 24 Production (000 tonnes) 0.25 171 1445 0.54 Sale Value (Rs. in Lacs) 0.62 345 4336 1.63
Concept Note (Ma-8)
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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
Concept Note (Ma-8)
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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 limeyield 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.
Ma - 9
Project Concept Note On Development of Filmcity in Rajasthan
Development of Filmcity in Rajasthan
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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.
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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
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(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 coordination, 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
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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-theart 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 longterm lease.
Ma - 10
Project Concept Note On Gas Link for Bhiwadi
Gas Link for Bhiwadi
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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.
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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 Gas Supply (MMSCMD) Gas Pipeline Network (km) LPG Pipeline Network (km) LPG Cylinders Per Day Total Investments (Rs. Crore) Year 2000 4.02 232 0 0 200 Year 2003 4.02 232 600 77000 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
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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.
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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.

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Table of Contents

Volume IV, KD4

1 14 1-15 1-6 1-4 1-5 1-5

Rajasthan Infrastructure Agenda 2025

Project Profiles - Manufacturing

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Testing and Common facilities for Ceramic Industry

Project Objectives and Scope

Project Implementat ion structure

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Testing and Common facilities for Ceramic Industry

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Testing and Common facilities for Ceramic Industry

Source: District Industries Centre, Bikaner

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Testing and Common facilities for Ceramic Industry

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Testing and Common facilities for Ceramic Industry

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Testing and Common facilities for Ceramic Industry

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Testing and Common facilities for Ceramic Industry

Cost Rs. 100 lakh Rs. 80 lakh

Common infrastructure such as Land and building

Library facilities Technology transfer and advisory services

Rs.10 lakh Rs. 15 lakh

Interest During Construction (IDC) Total cost

9.32 lakh Rs. 249.32 lakh

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Testing and Common facilities for Ceramic Industry

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

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Testing and Common facilities for Ceramic Industry

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Testing and Common facilities for Ceramic Industry

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Testing and Common facilities for Ceramic Industry

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Testing and Common facilities for Ceramic Industry

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Testing and Common facilities for Ceramic Industry

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Testing and Common facilities for Ceramic Industry

Rajasthan Infrastructure Agenda 2025

Intial Screening Report (Ma - 1)

Rajasthan Infrastructure Agenda 2025