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Setting up of Water and

Sewage treatment plant at


GIFT city

Urban Development
Government of Gujarat
Contents

Project Concept 3
Market Potential 4
Growth Drivers 7
Gujarat – Competitive Advantage 8
Project Information 10
- Location/ Size
- Infrastructure Availability/ Connectivity
- Project outline
- Key Players/ Machinery Suppliers
- Potential collaboration opportunities
- Project structure/Key Considerations
Project Financials 16
Approvals & Incentives 18
Key Department Contacts 19

Page 2
Project Concept

Water value chain

Water Distribution & Supply Sewage & Sanitation Others

Fresh/Ground Irrigation
water Supply to
collection municipality Waste water Water
collection, purification
Fresh/Ground
treatment and
treatment Supply to Bottled water
disposal
industries
Desalination
Bore wells
plant

Sewage treatment processes


► In a wastewater treatment plant, domestic wastewater is treated to enable it to be discharged
back into a watercourse. The wastewater produced by private households is polluted largely by
dissolved biodegradable substances.
► A wastewater treatment plant is essentially divided into preliminary treatment, primary
treatment, secondary treatment and tertiary treatment.

► Preliminary treatment operations typically include coarse screening, grit removal and, in some
cases, comminution of large objects so as to enhance the operation and maintenance of
subsequent treatment units.
► Primary treatment refers to the removal of settleable organic and inorganic solids by
sedimentation, and the removal of materials that will float (scum) by skimming.
► Secondary treatment is the further treatment of the effluent from primary treatment to remove
the residual organics and suspended solids. It involves the removal of biodegradable dissolved
and colloidal organic matter using aerobic biological treatment processes.
► Tertiary treatment is employed when specific wastewater constituents (like nitrogen,
phosphorus, additional suspended solids, refractory organics, heavy metals and dissolved
solids) which cannot be removed by secondary treatment must be removed.

Page 3
Market Potential

Sewage treatment plant market by value


► Global sewage treatment plant market is expected to reach US$20.85 billion by 2020 from
US$13.83 billion in 2015, growing at a CAGR of 8.56%.
► Rising issues of water scarcity and demand for reusable water are increasing the demand for
packaged wastewater treatment plants. Apart from this, growing environmental concerns have
compelled governments of various countries to set strict mandates for wastewater disposal.

Sewage treatment plant market by value

20.85
19.1
17.49
16.08
13.83 14.85

Source: Technavio 2015 2016f 2017f 2018f 2019f 2020f

Global sewage treatment plant market by technology


► By 2020, the extended aeration technology segment will account for the largest share with
31.65%. Extended aeration is a widely used technology in packaged wastewater treatment
systems. It is a process in which aerobic microorganisms decompose the organic content of
the wastewater.
► The extended aeration technology segment generated revenue of US$4.34 billion in 2015 and
is likely to reach US$6.6 billion by 2020, growing at a CAGR of 8.76%.

Sewage treatment plant market by technology 2020

7.4%
Extended aeration
15.2% 31.7% SBR
MBBR
20.8% MBR
Others
25.0%

Source: Technavio

Page 4
Market Potential

Water treatment market- Global scenario

Worldwide Water and wastewater


treatment (WWT) products
market (US$ billion)

96.3

59.2
47.7

Market leaders
Emerging countries
2012 2014 2019

► The global water treatment chemicals market was worth US$19.12 billion in 2014 and is
projected to reach US$24.94 billion by 2020, registering a CAGR of 4.53%
► Wide-scale developments in the municipal water treatment, oil & gas, power generation, metal
& mining, and desalination industries in emerging countries such as China, India, Brazil, Saudi
Arabia, and Africa have led to the high demand for water treatment capacities

Water treatment market- India scenario


With India projected as a water stressed nation by 2025, need to concentrate efforts on
water and wastewater treatment for sustainability.

India wastewater capital expenditure (US$


billion) India is also witnessing growth in
desalination market…
4.2
400% Increase in installed capacity of
2.8 desalination plant from 290 MLD in
2.1 2.5
2.0 2.2 2008 to 1450 MLD in 2015
22% CAGR growth in desalination
market by 2020

2013 2014 2015 2016 2017 2018

► Indian government initiative


► To support private party participation (PPP) in the water sector
► Introduced many regulatory reforms to encourage water treatment programs
► 40% of wastewater treatment plants are located in New Delhi and Mumbai, which presents big
opportunity for water Treatment companies in other cities

Page 5
Market Potential

Gujarat, one of the leading state in terms of economic growth and


industrialization, falls under the water-stressed category
► Despite having 185 rivers, 5.96% of the total area of the country and 4.93% of the total
population, Gujarat has only 2.28% of the total surface water resources available in India.
► 70% of Gujarat's fresh water resources are located only in 30% of its geographical area. At
present, there is disparity in water availability across different regions as South and Central
Gujarat has more than 50% of the total water availability.

Water demand (bcm) in …however per capita availability of


Rising Gujarat is expected to rise… water (in bcm/annum) is decreasing
1.1
water 57
0.8
demand 0.7
0.6
35
supply gap
in Gujarat

2010 2050 2001 2011 2015 2025

To decrease the water supply demand gap, Gujarat’s State Wide Water Supply Grid is looking to
supply drinking water to 75% population of the State by creating bulk water transmission pipelines,
water treatment plants, service reservoirs, distribution pipeline network and allied structures under
Regional Water Supply Scheme (RWSS)

Percentage Villages Covered by ► Gujarat government is considering


RWSS (%) increasing desalination installed capacity
to 300 MLD by 2018 and is estimated to
30.4 reach around 1500 MLD by 2030
20.1 ► Currently 37 CETP’s are present in the
12.6 state which includes 1 in the
5.5 Gandhinagar. Of the total, 33 CETP’s
are operational and 4 are proposed or at
construction stage.
South North Saurashtra Kachch
► The total no of effluent treatment plants
Gujarat Gujarat
installed and commissioned up to 31
march 2015 is 8709.
At present, 75 rural regional water
► Total No of STP is 98 with 89 in
supply schemes covering 4811
operation and 9 under installation. State
villages/hamlets estimating to
is also looking to invest more in several
INR1606.95 crore are under progress waste water recycling projects.

Page 6
Growth Drivers -
Gujarat
Gujarat, one of the leading state in terms of economic growth and
industrialization, falls under the water-stressed category

Gujarat salinity has impacted 1200 to 1500 villages and 12.90 lakh
High coastal hectare of land since 1960 in Gujarat. The increasing salinity in Gujarat
salinity in specially in Saurastra and Kutch area which possess coastline of 1125
Gujarat km leads to ground water conservation scheme and desalination plant
in the state.

Poor condition
In Gujarat, Old, rusted or leaking water distribution pipelines are leading
of water
to contamination of drinking water. Most of the distribution pipes in the
distribution state are 20-30 years old.
pipelines

Gujarat is focusing on Narmada water schemes and regional water


Government supply scheme to counter depletion of local sources, degradation of
initiatives ground water and rise in water demand. In order to cover more than
5000 villages in the state with safe drinking water, need of treatment
plants are rising

Rising Government of Gujarat has made huge investments of more than


investment INR30 billion in last 5 years in setting up bulk water pipelines for long
in water distance transmission. Water needs to be treated for long distance
transmission to prevent decaying of the pipes
networks
More than 10% of the country’s factories are in Gujarat while
Industrial manufacturing sector contributes 28% to its GSDP. Gujarat accounts
for 13% of the net value of manufacturing in India. Setting up of large
growth
industries in Gujarat has increased the requirement of water and
wastewater treatment facilities

Nearly 50% of the Gujarat population lives in urban areas in


Urbanization comparison to around 30% Indian average. In addition, rural population
of Gujarat is shifting to urban centres leading to stressed safe water supply for
consumption. This require a huge addition to the capacity of water and
wastewater treatment facilities in major cities

Decreasing per capital water availability, high industrial consumption and low water quality
generates the strong growth opportunities for the water treatment market

Page 7
Gujarat - Competitive
Advantage
First state to address the waste issue and brought treatment,
stabilization and disposal facility for cluster of industries.
► Gujarat is among the top five states in India in terms
of water storage capacity per unit land area State-wise number of dams
► Gujarat provides 100 litre daily rural water supply per Maharashtra 1800
head against the country average of 55 litres
Madhya Pradesh 905
► Gujarat is one of the top states with more than 650
dams and 35 large and medium reservoirs Gujarat 666

► State wide water supply grid spread across 1,20,769 Chhattisgarh 258
km that aims to serve 75% of the Gujarat population
Karnataka 231
► World’s largest man made fresh water reservoir in
Gujarat with a storage capacity of 10,000 million cubic Rajasthan 211
meter
Odisha 204
► 5590 projects are under execution for treatment of 28
lakh hectares of the state.

Gujarat governments' initiatives to flourish the water distribution

Water market Policy Initiatives


INR24.5 bn Gujarat has signed MoU’s for
Spent for 361 km long pipeline
networs, supplying daily 165
setting up of wastewater
crore litre Narmada water to recycling plants in five major
total 5,587 villages and 116 cities–Gandhinagar,
cities/towns Ahmedabad, Vadodara,
Bharuch and Surat
160%
Rise in budget from INR70 crores
to INR183 crores as part of its Indian government has
drought mitigation plan established wastewater
discharge standards for all
9 sites segments such as municipal,
Out of total 27 Common Treatment, industrial, commercial and
Stabilization and Disposal Facility residential.
(common TSDF) in the country are
in Gujarat in which 6 are in
operation
Proposed tax breaks for
industries that save water
Narmada based Water Supply Grid
has connected 7713 villages and
and environmental
119 towns for concerns

INR 9110.98 cr.


Page 8
Gujarat - Competitive
Advantage
Ease of Doing Business: Only state which comply 100%
with environmental procedures. Gujarat fares highly when
it comes to setting up a business, allotment of land and
obtaining a construction permit “Gujarat ranked first in
ease of doing business as
per DIPP report 2015”

Key industries: Gujarat is the leader in key industrial


sectors such as chemical, petrochemical, auto and its
allied sector, pharmaceuticals, engineering, textile,
jewellery etc.
► Gujarat has attracted cumulative FDI worth US$12 bn
from April 2000 to March 2015
► Gujarat clocked the highest growth rate in
pharmaceutical market at 22.4% surpassing the industry
growth rate of 10.9%
► Gujarat contributes around 19.1% to India’s total exports
of goods in 2014-15

Gujarat, with 42.6% of its population residing in the urban


areas, is among the top three urbanized states in the
country

Gujarat is one of the power surplus states in the country,


as a result it helps in bringing huge amount of investment
from the industries and tagged as preferred investment
destination in the country

Skill development industry in the state is well-developed


with many technical institutions (786 ITI’s and
52 Skill upgradation centres)

Page 9
Project Information
Location/Size
Location suggested: Gujarat International Finance Tec-city (GIFT)

Land Area (square Km) 3.58

Construction scale (million


8.5
square meter)

Greenbelt (thousand
1183
square meter)

Height (m) 410

► Government of Gujarat formulated GIFT to realize the potential of state as a center for financial
services industry.
► GIFT will cater to India’s large financial services potential by offering global firms, world class
infrastructure and facilities.
► GIFT requires 62 million square feet of real estate office and residential space.

Integrated
infrastructure Technology
development ► Broadband
► Well planned ► Wi-Fi
residential housing ► Shared IT Services
projects. ► Global connectivity
► Educational institutes
► State-of-the-art Integrated
hospitals development
► 5 star hotels and at GIFT Entertainment hubs
business clubs
Smart business ► High quality
environment entertainment malls
► Benchmark offices ► Large rive front
► High rise district with entertainment
landmark buildings development
► Over 60% of green
space
Source: Government of Gujarat website

Page 10
Project Information

Logistics and Connectivity

Rail Road

► Distance between Ahmedabad railway


station and Gift city is 29 km.
► Railway line passes by GIFT city on the west ► Distance between Gandhinagar railway
(to Delhi) and east (to Himmatnagar) station and GIFT city is 15 km.
Proposed Proposed:
► Gandhinagar – Ahmedabad - Dholera metro
► Surface roads (4+4 lane)
rail project proposes connectivity to GIFT city ► Pedestrian pathways and emergency vehicle
under phase 1 extension of 10Kms. roads
► Bridges and public transport system
► Travellators

Air Port

► Ahmedabad international airport is at a ► Gujarat Maritime Board plans to set up a


distance of 12 Km from GIFT city. maritime cluster in GIFT city by 2017.
Proposed: ► The cluster will house maritime-related
► International airport at a distance of 80 Km service providers such as ship owners,
from Ahmedabad and 20 Km from Dholera shipping agents, ship chandlers, shipping
SIR. finance and insurance firms and maritime
education institutes.

Utility

Water Power

Estimated power demand:


► Narmada main canal
► Total demand ~740 MW
► Recycling and reuse of waste water
► Underground cabling for power distribution
► Rainwater harvesting
within GIFT
► Perennial water supply ensured through
► Substation and distribution automation
construction of 3 barrages over Sabarmati
► Gas Insulated Switchgears (GIS) substation
river.
for Sub-transmission and Distribution within
GIFT city
► Compact substation (CSS) in buildings

Page 11
Project Information

Water Treatment Process

The water treatment process may vary slightly at different locations, depending on the technology
of the plant and the water it needs to process.

Sewage Treatment Process

Tertiary treatment is the final cleaning process that improves wastewater quality before it is
reused, recycled or discharged to the environment.

Page 12
Project Information

Manpower requirement
Responsibility Number
Manager 1
Assistant Manager 2
Chemist 1
Operator 1
Assistant Operator 2
Labor 5
Cleaner 2
Reliever 2
Electrical Engineer 5
Mechanical Engineer 5
Civil Engineer 2
Guards 2
Total 30
* Total manpower is for the 3 shifts of 8 hours each for total 24 hours

Key Components

Bar screen Multigrade filter Activated carbon filter

Grit chamber Equalisation tank Secondary Clarifier

Flowmeter

Local control panel Aeration tank Alarm Indicators

Page 13
Project Information

India Leading Players


Corporate
Company Business Offerings
office
VA Tech Wabag Industrial water treatment, sea water desalination, waste
Chennai
GMBH water treatment and sludge treatment
Waste water treatment to industries such as Paper,
Thermax India Pune
Chemical, Energy, Power, Health sector
GE Water Bangalore Water analytical instruments, waste water treatment
Waste water treatment, processed water, Drinking water
Siemens water Mumbai
treatment, water treatment plant
Hindustan dorr-oliver Waste water, water recycle & reclamation and sewage
Mumbai
limited treatment plants
UEM India Pvt. Ltd Noida Waste water and Water treatment
Ion exchange India ltd Mumbai Waste water treatment, Chemical water treatment
Sewage and effluent treatment and disposal, water
L&T Construction Chennai
treatment and distribution
Water treatment and transmission, wastewater treatment
SPML Infra Ltd. Bangalore
and recycling, solid waste management, etc.
Sewage treatment, effluent treatment, raw water and
Voltas Limited Mumbai
process water treatment
Waste water treatment, sludge treatment, drinking water
Veolia Water India New Delhi
treatment and distribution

Potential Collaboration
► Ion exchange India ltd, VA Tech Wabag GMBH having ISO 9001:2000 certification and ISO
9001:2008 accreditation respectively in all the operating units
► Toshiba Corporation had spent more than INR400 crore to buy 54% stake in UEM India Pvt Ltd,
with total of 80% stake.

Page 14
Project Information

Project Structure

Manufacturers/ Intermediaries in End user segment


Suppliers Business value chain

Equipment EPC companies Industrial Users


Manufacturers/
Suppliers (OEM-
Turnkey service Municipal
providers) Consultants Corporation or
communities

Financial Infra projects


institutions

Component Civil
manufacturers/ contractors
suppliers

Key considerations
► The capacity of Sewage treatment Project ► System is designed to produce water as
available for purchase depends on plant per regional water supply schemes by
capacity, the operator’s commitments to Gujarat water supply & sewage board
other purchasers.
► A degree of technical skill for selection of
► The backwash water and sludge generation process conditions and adhesive/resins
from water treatment plants are of ► Reduction in Start-up and Operating
environment concern in terms of disposal Wastages
► Maintenance must be done on regular basis ► Uninterrupted Power supply
► The industry partner not to grant any third
party to obtain any entitlement to the
Product water supplied by the facility

Page 15
Project Financials

WTP Estimated Project Cost

Equipment‘s/Components Units Total Price (INR)

Primary Instruments 1 38,62,00,000


Transmitters NA 8,00,00,000
Valve controllers NA 25,00,000
Pump NA 4,00,00,000
Flowmeter NA 75,00,000
Storage reservoir NA 25,22,941
Level Sensor NA 4,00,00,000
Local control panel (Backup control, monitoring, PLC) NA 5,00,00,000

Single purpose displays 1 25,00,000


Alarm indicators 1 25,00,000
Filter 1 8,00,00,000
Operation and maintenance cost (Staffing, energy, NA 2,48,50,872
chemicals, Other and maintenance materials)

Total 71,85,73,813

¾ There would be additional cost involved of in case of SCADA system implementation.

Approximate cost for all the equipment/ study is estimated to be around INR
0.7 billion

Page 16
Project Financials

STP Estimated Project Cost

Categoy Equipment‘s/Components Units Total Price (INR)


Civil Equipments (Pond) NA 4,00,00,000
Primary clarifier Mechanical Equipments (set up iron arm) NA 75,00,000
Electrical Equipments (Cable,motor) NA 25,00,000
Secondary clarifier Civil, Machanical and Electrical equipments NA 4,00,00,000
(Motor Load, Generator)
Tertiary clarifier Civil, Machanical and Electrical equipments NA 5,00,00,000
Collection tank 1 10,00,000
Reactor 1 20,00,000
Settler 1 10,00,000
Paxman Filter 1 10,00,000
Charcoal filter 1 15,00,000
Multi grade filter 1 15,00,000
Blowers (Electric set, Automatic 2 10,00,000
equipment's)
Total 14,90,00,000

Approximate cost for all the equipment/ study (for WTP and STP) is estimated
to be around INR 0.86 billion

Page 17
Approvals / Incentives

Approvals Required

• Setting up of Business: The facility can be operated by the private player through a built-
operate-transfer (BOT) model.

• Regulation for water supply sewage services: Gujarat water supply & sewage board
(GWSS) works for rural water supply system as well as operational management of Rural
Regional water supply schemes covering cluster of villages.

• Power & Water Connection: Additional power for the project can be procured from the
existing supplier – Paschim Gujarat Vij Company Ltd. (PGVCL). Similarly, water for the project
can be procured from the Gujarat Water Supply and Sewerage Board.

• Environmental Clearance: CRZ Clearance (Coastal Clearance) needs to be obtained from


Gujarat Coastal Zone Management Authority (GCZMA). Additionally, pollution clearance from
Gujarat Pollution Control Board (GPCB) is also required.

Incentives from Government of Gujarat

1 Gujarat government is also promoting water treatment because of environmental concerns.


The use of solar photo voltaic power in the process would further reduce the operation cost.

2 Financial assistance for skill development centres, for technology acquisition and also for
supporting energy and water conservation as well as for environmental compliance.

3 Tax holidays: The benefits of tax holidays as provided under Section 80 (I) (A) of the Income
Tax Act for development, operation and maintenance of power plants, airports, ports, waste
management facilities, water treatment plants, etc. is available to the developer.

Page 18
Gujarat International Finance Tech Company Ltd
http://giftgujarat.in/home.aspx

Department of Tourism, Gujarat


http://www.gujarattourism.com/

Infrastructure leasing & financial services Ltd


http://www.ilfsindia.com/

iNDEXTb - Industrial Extension Bureau


www.indextb.com

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

Block No.6, 5th Floor,


Udhyog Bhavan, Sector No. - 11,
Gandhinagar - 382 017.
CIN : U75140GJ1999SGC036051
Telefax : +91 - 079 - 23246127 / 128, 23241865 / 66
Fax Exten. : 231
Email : contact@gudcltd.com

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