Sri City Information Docket MAY 2016 SEZ - DTZ - EMC - FTWZ

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Edmund Sims
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1 Sri City Information Docket MAY 2016 SEZ - DTZ - EMC - FTWZ

Introduction Sri City is an emerging world-class Integrated Business City on the Andhra Pradesh - Tamil Nadu border in South India. It has the - ment of Andhra Pradesh.

encompasses 100 sq. kms (25,000 acres) which includes open spaces, reserve forest, water bodies & other lands.

2 Introduction Sri City is an emerging world-class Integrated Business City on the Andhra Pradesh - Tamil Nadu border in South India. It has the - ment of Andhra Pradesh. The City is envisioned to benchmark with Located strategically about 55 kms from the metropolitan city of Chennai on NH-5, Sri City offers a unique advantage of world-wide - The Sri City region encompasses 100 sq. kms (25,000 acres) which includes open spaces, reserve forest, water bodies & other lands. The dedicated Industrial area is spread over 10,000 acres and Just 90 minutes from Chennai airport, in a scenic region surrounded by hills, lakes and a reserve forest, lies Sri City, slated (DTZ) as well as a Free Trade and Warehousing Zone (FTWZ). Built on the concept of 'Work-Live-Learn-Play' and master-planned by Jurong Consultants, Singapore, Sri City offers the Integrated develbeen designed to support over 350 industrial units, service sector companies, full-fledged business support services and living areas

Zones BUSINESS ZONES Special Economic Zone (SEZ) The Special Economic Zone is an exclusive bonded area for export oriented companies.

Electronics Manufacturing Cluster (EMC) The Electronics Manufacturing Cluster (EMC), is a dedicated area for the electronics sector.

Domestic Tariff Zone (DTZ) The Domestic Tariff Zone caters primarily to the Indian market. This zone also acts as a location for ancillary units for SEZ operations.

Free Trade And Warehousing Zone (FTWZ) The FTWZ is a bonded area catering to all trading activities.

EDUCATION ZONE Sri City has a dedicated Education Zone envisaged to provide quality education and multifarious disciplines to people at Sri City and the region.

3 Zones BUSINESS ZONES Special Economic Zone (SEZ) The Special Economic Zone is an exclusive bonded area for export oriented companies. Special incentives package as per the SEZ Act 2005 and SEZ Rules 2006 are applicable to the SEZ units. Electronics Manufacturing Cluster (EMC) The Electronics Manufacturing Cluster (EMC), is a dedicated area for the electronics sector. This exclusively earmarked EMC is the ideal choice for the entire gamut of activities in the sector - electronic R&D, design & manufacturing, training centers and testing labs. All the rules under the Modified Special Incentive Package Scheme (M-SIPS) of the Government of India and the State Incentives Package are applicable to the EMC units. Domestic Tariff Zone (DTZ) The Domestic Tariff Zone caters primarily to the Indian market. This zone also acts as a location for ancillary units for SEZ operations. The incentives provided under the Industrial Policy of the Govt. of India and Govt. of Andhra Pradesh are applicable in the zone. Free Trade And Warehousing Zone (FTWZ) The FTWZ is a bonded area catering to all trading activities. Special Incentives Package of the SEZ Act & Rules are applicable in this zone. EDUCATION ZONE Sri City has a dedicated Education Zone envisaged to provide quality education and multifarious disciplines to people at Sri City and the region. This zone envisages establishment of schools, universities, training centers and R&D institutions which will eventually cater to the whole country. Currently, the zone has the presence of institutes like Indian Institute of Information Technology (IIIT Chitoor), Institute of Financial Management and Research (IFMR) and Chennai School of Business Excellence (CSBE), Schooling requirements of various curricula - State syllabus, CBSE and IB will be offered at Sri City. Chinmaya Vidyalaya, run under the auspices of the Chinmaya Mission Trust, has established a CBSE School at Sri City, and is currently operational. Chennai School of Business Excellence Sri City Chinmaya Vidyalaya IFMR

Zones LIFESTYLE ZONE Sri City envisages creation of residential areas close to the business zone.

Various housing formats - apartments, dormitories, hostels, town homes and exclusive independent villas will cater to the various needs of Sri City occupants.

farmers market, business hotels, multi-cuisine restaurants, food courts, dealerships, entertainment, cineplex etc.

4 Zones LIFESTYLE ZONE Sri City envisages creation of residential areas close to the business zone. This zone is an evolving one where all the elements for creating a vibrant lifestyle for the people living in Sri City is currently under development. Various housing formats - apartments, dormitories, hostels, town homes and exclusive independent villas will cater to the various needs of Sri City occupants. The Central Business District (CBD) will include government offices, library, police, fire, business offices, financial center, professional services center, shopping, pedestrian high streets, farmers market, business hotels, multi-cuisine restaurants, food courts, dealerships, entertainment, cineplex etc. Sri City houses multi-specialty healthcare facilities that cater to emergencies as well as the day-to-day health needs of its residents. The Frontier Lifeline Emergency Care Center is operational with ambulance services and on-site first aid. Sankara Nethrayalaya, considered among the best eye care hospitals in Asia, has set up a facility here. The Inn Food Court inside the Business Centre Creekside Residences RECREATION ZONE Resorts and hotels will create the necessary vibrancy for lifestyle to flourish at Sri City. Jogging tracks, walking trails, fitness centers, waterfront leisure development and a host of reaction facilities make the City a gratifying experience for people living here. Getaways: A short drive from Sri City is located the Pulicat Lake, the second largest salt-water lake/lagoon in India with a bird sanctuary. The Proposed 18-hole golf course rugged beauty of the Tada falls is also a short distance away and the trekking trails at Nagala Hills is a popular retreat. These getaways in the immediate vicinity of Sri City provide for much needed breaks from everyday pressures. Boating, kayaking, bicycling, bird-watching, fishing, horse riding and other sports facilities are part of Sri City too. An 18 - hole golf course with club house amenities will eventually add to the premier lifestyle experience in Sri City.

5 TM Sri City Clients Currently, over 105 top-league companies including 42 MNCs from over 26 countries across the globe at Sri City. USA JAPAN USA ITALY CHINA FRANCE NHK NOLA&DOLA USA JAPAN JAPAN NETHERLANDS TAIWAN JAPAN R India Metal One Steel Plate Processing Private Limited. USA ITALY THAILAND USA JAPAN ITALY JAPAN Venture JAPAN South Africa INDIA JAPAN UK R Delivering Innovative Solutions CHINA BAHRAIN CHINA ITALY JAPAN INDIA JAPAN JAPAN Khemka I N G R E D I E N T S U.K U.K SAUDI ARABIA UK INDIA SPAIN and more...

6 Business Potential at Sri City Why Sri City? POTENTIAL FOR LARGE INVESTMENTS The JLL Demand Assessment Study has estimated about 350 industrial units to be located in Sri City from varied segments in the manufacturing sector. Today, investments at Sri City have crossed over Rs.20,000 crores. Exports have crossed over Rs.1,200 crores. SEZ & FTWZ DTZ CLUSTER BENEFITS OF A LARGE SCALE DEVELOPMENT Sri City has over 7500 acres dedicated for companies with robust industrial infrastructure. The location of the SEZ, EMC, DTZ and FTWZ within its precincts offers the advantage of locating ancillary units close to the anchor unit and offers the cluster benefits of a holistic development. This is also conducive to enjoying multiple logistics and management benefits. A large land-bank is available for scale-up and expansions. Strategic Location Proxmity to 4 Seaports & 2 Airports The Business Ecosystem Access to critical raw material resources & workforce Work-Live- Learn- Play EMC Global Clientele INTERNATIONAL EXPERTISE Jurong Consultants, Singapore, (master-planners of Suzhou SEZ in China and several others) has crafted the master-plan for Sri City. Equally competent international vendors for detailed engineering and implementation ensure that Sri City is to be a point of reference in the league of favoured destinations by industry.

7 Business potential at Sri City STRATEGIC LOCATION 55 kms from the metropolitan city of Chennai 65 Km from the major port of Chennai 50 Km from the major port of Ennore 100 Km from the major port of Krishnapatnam port Availability of workforce and talent pool in the Sri City region Easy access to many other mature industrial areas ACCESS TO CRITICAL RAW MATERIAL RESOURCES Proximity to airports, seaports and the commercial business district of Chennai, offers local market access and easy movement of raw material and finished goods. PLUG AND PLAY INFRASTRUCTURE 24 X 7 Power as assured by the GoAP 24 X 7 assured Potable Water Supply Why Sri City? 68/43/31/24/18/12m Storm water drainage network designed to ensure that Sri City is free of water-logging at all places Clean green Environment with open spaces and 10% green cover INTEGRATED DEVELOPMENT- SOCIAL INFRASTRUCTURE Housing and social infrastructure is an integral part of the smart city development based on viable, environment friendly and ecologically sustainable community development, integratplanned within Sri City

Connectivity Road / Rail / Port /Airport / Internal-link ROAD LINK Sri City is located on National Highway-5 which forms part of the Golden Quadrilateral network connecting Chennai in Tamil Nadu and

Currently a four-lane system, it is now being upgraded to a six-lane expressway.

8 Connectivity Road / Rail / Port /Airport / Internal-link ROAD LINK Sri City is located on National Highway-5 which forms part of the Golden Quadrilateral network connecting Chennai in Tamil Nadu and Kolkata in West Bengal. The Golden Quadrilateral is the largest express highway project in India and consists of four/six lane express highways connecting Delhi, Mumbai, Kolkata and Chennai. Currently a four-lane system, it is now being upgraded to a six-lane expressway. With its prime importance in the National Highway networks, the robust connectivity to Sri City is ensured with good maintenance and refurbishments. RAIL LINK Just across Sri City along the National Highway-5 runs a broad-gauge railway line. This arterial rail line connects Sri City to Chennai in the South and Kolkata in the east and Delhi in the north. Sri City's connectivity advantage is enhanced by the suburban rail services operating out of Chennai. The hinterland is served by nearly 40 suburban rail services to and from Chennai every day. The efficient rail network systems provide access to all suburbs and neighboring districts of Chennai. With such connectivity in place, commuting to work at Sri City will be hassle-free.

Connectivity PORT Sri City has quick access to not just one, but five seaports Port of Chennai (65 Km), Ennore Port (50Km), Krishnapatnam port (100 Km) Kattupalli Port (52 km) and Dugarajapatnam port

Ennore port is situated 50 km south of Sri City. It is the 12th major port in India and the first corporatized major port in the country.

5 million TEU s) of containers and LNG (Liquefied Natural Gas) terminal will have a capacity of 5 million metric tonnes per annum.

9 Connectivity PORT Sri City has quick access to not just one, but five seaports Port of Chennai (65 Km), Ennore Port (50Km), Krishnapatnam port (100 Km) Kattupalli Port (52 km) and Dugarajapatnam port (60 Km). The Port of Chennai is 65 Km from Sri City. Strategically located and well connected with major parts of the world, it is today the hub of the Indian subcontinent. Ennore port is situated 50 km south of Sri City. It is the 12th major port in India and the first corporatized major port in the country. Currently it is the number one destination for liquid bulk cargo. Phase II includes developing a container terminal for handling 18 million tonnes (1.5 million TEU s) of containers and LNG (Liquefied Natural Gas) terminal will have a capacity of 5 million metric tonnes per annum. The fifth, Dugarajapatnam port near Sri City is an upcoming port which is to be operational soon. Kattupalli port is situated about 52km south of Sri City. This port will be the third major international destination for ship repairs. Krishnapatnam port lies 100 Km to the north of Sri City. Krishnapatnam port Company has won the mandate from the Govt. of Andhra Pradesh to develop this port into a modern, deep water and high productivity port. The port will primarily cater to bulk cargo, and has container terminal also. AIRPORT Sri City has easy access to two airports Chennai International airport (75 Km) & Tirupati International airport (75 Km). Chennai International airport is the third largest international gateway into the country and the third busiest airport in India after Mumbai and Delhi. It currently handles over 10 million passengers. The international cargo-handling facilities at Chennai have a turn-around time of 24 hours. Tirupati International airport is 75 Km north of Sri City. This airport has been upgraded to an international airport on October 2008 and international cargo handling facilities are in place. INTERNAL LINK A shuttle service is available for internal commuting for Sri City occupants. The shuttle service connects various zones of Sri City, and is an integral part of the internal transport system.

Infrastructure Road Power Water Sewerage Telecommunications Green Zone ROAD Sri City.

Arterial Road, POWER 450 MW Power has been allocated by the Government of Andhra Pradesh

The current power tariff is given below: Voltage of Supply Demand & Energy Charges per unit

/Unit TOD Charges (6 PM to 10 PM) in Rs./Unit 6.45 132 KVA & above 386 5.36 33 KVA 386 5.79 6.

10 Infrastructure Road Power Water Sewerage Telecommunications Green Zone ROAD Sri City. Well-laid roads with asphalt-paving are being are of IRC standards and are divided into Arterial Road, POWER 450 MW Power has been allocated by the Government of Andhra Pradesh which will be distributed in phases. The current power tariff is given below: Voltage of Supply Demand & Energy Charges per unit (KWH) Fixed Charge (Demand) in Rs./KVA/month Energy Charge in Rs./Unit TOD Charges (6 PM to 10 PM) in Rs./Unit KVA & above KVA KVA HT POWER TARRIF for General Industries in Andhra Pradesh : Note : TOD refers to Time of Day 6 PM to 10 PM. There is no concession Electricity Duty : 6 paisa per unit

Infrastructure WATER Sri City has a confirmed allocation of one TMCFT of water from the Government of Andhra Pradesh. Treated and potable quality water is supplied to the units.

The primary source of water is the annual government supply, 30,000,000KL (1 TMC) of water from Somasila-Kandaleru Reservoirs, the buffer Storage Capacity of 2,400,000KL in three tanks at Sri City

The secondary source is ground water, a large re-charge area of forest reserves covering 25,000 acres surrounds Sri City. 3. The tertiary source is desalinated water.

Treated effluents from factories will be taken through a separate line and treated for reuse. All industrial, commercial and residential units will be connected to the central sewage system.

11 Infrastructure WATER Sri City has a confirmed allocation of one TMCFT of water from the Government of Andhra Pradesh. Treated and potable quality water is supplied to the units. The total capacity of the water treatment plant is planned for 77MLD. Sri City has three reservoirs of water supply 1.The primary source of water is the annual government supply, 30,000,000KL (1 TMC) of water from Somasila-Kandaleru Reservoirs, the buffer Storage Capacity of 2,400,000KL in three tanks at Sri City and the rain-water (Harvest) Storage in Many Tanks within Sri City Area Recycled Water for designated usages. SEWAGE TREATMENT 2. The secondary source is ground water, a large re-charge area of forest reserves covering 25,000 acres surrounds Sri City. 3. The tertiary source is desalinated water. Sri City will have sewage treatment plants to treat sewage from the entire area and will recover and reuse the water. Treated effluents from factories will be taken through a separate line and treated for reuse. All industrial, commercial and residential units will be connected to the central sewage system. The total capacity of the Sewage Treatment Plant is 47MLD. GREEN INITIATIVES TELE-COMMUNICATIONS Sri City boasts of being the first large scale industrial development in the country progressing towards a carbon neutral status. About 12.50% of the park area is being developed as green space. This area, spread out in various parts of Sri City will ensure that the park provides a good and healthy working and living environment. Some of the green initiatives include an 8 MV solar power plant, solar-powered street lights, solar traffic control systems, re-cycling of water, a target to grow 1 million plants and as using electric vehicles such as battery cars to travel within Sri City. ISDN, data transferring, voice mailing, video conferencing is available at Sri City. Broadband connectivity will be available shortly. The telecom providers are Reliance, Aircel and BSNL In addition to this, a fully dedicated telephone exchange is proposed within Sri City which will ensure telecom service of international standards like high speed data communication, image transmission, etc.

Target Industry sectors Sri City is being developed on the dictum of a clean green environment for both industry and living. Green and Orange industries can set up their units at Sri City.

12 Target Industry sectors Sri City is being developed on the dictum of a clean green environment for both industry and living. Green and Orange industries can set up their units at Sri City. Red industries are permissible after stringent scrutiny and approvals. Core Red industries like bulk drugs, tanneries, asbestos, petro-chemical and similar industries are not permitted. Target sectors of Sri City include: AUTOMOTIVE FOOD PROCESSING ENGINEERING ELECTRONICS/HARDWARE FMCG APPAREL & TEXTILES LETHER PRODUCTS LOGISTICS & WAREHOUSING MEDICAL DEVICES & SUPLIES RENEWABLE ENERGY SPORTS & TOYS IT/ITES/BPO AEROSPACE BIOTECH/PHARMA OTHER ECO-FRIENDLY INDUSTRIES

Lifestyle support Housing Model Community Service Apartments HOUSING Housing options on various formats

2BHK/3BHK flats, independent villas will be available to support employee housing requirements.

Suitable dwelling units with 1 BHK and 2 BHK have been built and are ready for occupation.

and bath are provided. Common recreation facilities like gym, indoor games etc.

Meeting rooms, catering services and access to telecom networks are an integral part of all the apartments.

13 Lifestyle support Housing Model Community Service Apartments HOUSING Housing options on various formats based on lifestyle needs and budgets are planned across Sri City. 2BHK/3BHK flats, independent villas will be available to support employee housing requirements. MODEL COMMUNITY In order to provide good housing for workers. Suitable dwelling units with 1 BHK and 2 BHK have been built and are ready for occupation. SERVICED APARTMENTS In order to house executives and other employees, serviced apartment with a kitchenette and bath are provided. Common recreation facilities like gym, indoor games etc. are also part of the lifestyle support. Meeting rooms, catering services and access to telecom networks are an integral part of all the apartments. Sri City not only offers housing, model community and serviced apartments, but is also planned for all the amenities that can be expected of a world-class business city like a modern shopping plaza, club house, ample parking space, power redundancy, security and extensive landscaping. Dormitory Model community Village

SEZ & Incentives As per the SEZ Act, 2005 & the subsequent amendments, some incentives that a unit enjoys in a SEZ are: 15-year graded Income Tax Holiday Exemption from Excise and Customs Duties

14 SEZ & Incentives As per the SEZ Act, 2005 & the subsequent amendments, some incentives that a unit enjoys in a SEZ are: 15-year graded Income Tax Holiday Exemption from Excise and Customs Duties Exemption from Central Sales Tax / VAT Exemption from Service Tax Exemption from local taxes Exemption from local taxes Single Desk Clearance 100% FDI through automatic route Domestic Sales on payment of applicable duty Offshore banking unit On-site customs clearance For more details, please visit:

Leasing land in Sri City APPROVALS REQUIRED TO LEASE LAND IN SRI CITY Company Incorporation Certificate from the Registrar of Companies Letter of Approval from the Development Commissioner - For SEZ

15 Leasing land in Sri City APPROVALS REQUIRED TO LEASE LAND IN SRI CITY Company Incorporation Certificate from the Registrar of Companies Letter of Approval from the Development Commissioner - For SEZ & FTWZ a) PROCEDURE OF LEASING LAND In the SEZ and FTWZ category, MOUs are signed with Sri City for the extent of land required, and the Lease Deed is to be signed after obtaining the letter of approval from the Development Commissioner, based on the MoU. The MoU has to be submitted to the Development Commissioner of the SEZ along with the application form and the project proposal for getting the Letter of Approval. The approval for the unit will be given by the Unit Approval Committee headed by the Development Commissioner. Clearance from the Department of Policy and Promotion/Board of Approvals, wherever required will be obtained by the Development Commissioner. The Letter of Approval (LOA) to set up the unit will be given by the Development Commissioner on perusal of the project proposal. A copy of the LOA has to be submitted to Sri City and the Lease Deed and related documents can be executed. b) COMMERCIAL DOCUMENTS THAT MUST BE EXECUTED BY THE UNIT For leasing land in the DTZ Sector, the unit must execute the commercial documents and register the following: Lease Deed Infrastructure Agreement Services Agreement c) PROCEDURE AFTER SIGNING THE LEASE DEED The Lease Deed alone will have to be registered. The other agreements are between the unit and Sri City. On signing of the Lease Deed, the land is handed over to the client for possession. The unit can now start construction and get the necessary approvals for the building and authorized operations.

Setting-up a unit in a SEZ/DTZ The approvals required for setting up a SEZ/DTZ unit are: LOA (Letter of Approval) - Required only for SEZ IEM (Industrial Entrepreneur Memorandum)/EM (Entrepreneur

16 Setting-up a unit in a SEZ/DTZ The approvals required for setting up a SEZ/DTZ unit are: LOA (Letter of Approval) - Required only for SEZ IEM (Industrial Entrepreneur Memorandum)/EM (Entrepreneur Memorandum) IALA-Approval of Building Plan (Industrial Area Local Authority) Occupancy Certificate CFE (Consent for Establishment) Lease Deed Registration Letter of Allotment (Space Allocation Letter) Bond-H cum LUT (Letter of Undertaking) - Required only for SEZ Exemption Letter for purchase of material for construction - Required only for SEZ CST/VAT Registration Central Excise Registration IE Code (Import Export Code) Factory Plan Approval Fire NOC Principal Employer Certificate & Registration of Contractors Industrial License Power Connection Water Connection CFO (Consent for Operation) Factory License

Climate Temperature Humidity Rain Wind speed TEMPERATURE Temperatures at Sri City SEZ are moderate. HUMIDITY The annual average humidity is about 74% in the Sri City - SEZ area.

17 Climate Temperature Humidity Rain Wind speed TEMPERATURE Temperatures at Sri City SEZ are moderate. HUMIDITY The annual average humidity is about 74% in the Sri City - SEZ area. RAIN Season Average Max Temperature Average Min Temperature Summer 42 C 23 C Winter 31 C 18 C Two monsoon seasons are distinguished, a mild southwest monsoon and a more vigorous northeast monsoon. Together with the calmer periods and the transition periods the following yearly wind and wave patterns occur: Months Mid May to mid August Mid August to Mid October Mid October to Mid January Mid January to Mid April Monsoon Southwest monsoon Transition/calm period Northeast monsoon Transition/calm period The average rainfall for the past 25 years in Satyavedu Mandal has been 1305 mm per year. Nearly 60% of the rainfall occurs during mid October to end December. WIND SPEED IN THE AREA The annual average wind speed near the coast line is about 14 Kmph. During a storm of 2-3 days in a year near the coast, it goes up to 145 Kmph. Sri City is 20 Km from the sea-coast. Source: Dept. Meteorology, AP

18 # 85, Kutchery Road, Mylapore, Chennai Tel: ; Website:

ELECTRONIC MANUFACTURING CLUSTER - II

ELECTRONIC MANUFACTURING CLUSTER - II at Vikruthamala (V), Yerpedu (M), Chittoor (D) APIIC Limited - Implementing Agency Babu A, IAS Vice Chairman & Managing Director T: 0866-2428301 E: vcmd.ap.apiic@nic.in