Dr R Khajuria TEAM2 Baroda Knowledge City? 150 SEZ proposed / applied to Central Govt. –Including 50 IT/ITES SEZ – None in Gujarat! –120 SEZ Approved by * –11 Operational SEZ, converted from FTZ –50 SEZ Coming up all over India, 12 in Gujarat –Biotech Park at Savli, Baroda coming up Yes, Baroda Knowledge City »IT = Information Technology »ITES = IT Enabled Services (including BPO / KPO etc) »* Source: BOA, Government of India meeting »Image courtesy: TATA Broadband
Dr R Khajuria TEAM3 Baroda is a Knowledge City Baroda is traditionally a Knowledge City, grown substantially by Legendry Maharaja Sayajirao (MS) Gaekwad of Baroda That is why he set up MS University of Baroda with unique educational programs, unparallel to any Tier II city of India Fusion Indian Enterprise with World Class Knowledge, and we have …………………………..Baroda Knowledge City
Dr R Khajuria TEAM4 Baroda: An Edutainment City Baroda has everything that a Knowledge City wants…. –Knowledge Capital of Gujarat –Cosmopolitan well developed city –Educated talented cultured young Graduates –Gardens, Health Clubs, Sports: Golf, Cricket, etc –Multiplex Cinema Theatres: Ionx, Chandan, Deep –Throbbing NRIs and –High Speed Internet backbone Thats why Baroda Knowledge City….
Dr R Khajuria TEAM5 Baroda: A Knowledge Source Large pool of 100,000 Graduates p.a. from 11 Universities in 200 miles periphery: –Baroda (MSU), Vallabh Vidyanagar (SPU), Nadiad (DDIT), Surat (SGU, NIT), Ahmedabad (GU, Nirma University, DAIIT), North Gujarat (NGU), Rajkot (SU) and Bhavnagar (BU) World Class IT Professionals from Baroda – Sam Pitroda, Dr Madhu Mehta, Dewang Mehta (NASCOM), Many more…
Dr R Khajuria TEAM6 Baroda: Emerging Finance City Vibrant Stock Exchange International Banks: Citibank, HSBC, Standard Chartered, ABN Amro Indian Banks: Bank of Baroda, State Bank of India, Central Bank, Dena Bank, Union Bank, HDFC, ICICI, UTI, Yes, Kotak – 30 Banks Large Corporations: IPCL, IOC Refinery, GSFC Security & Safety Cheapest Space in India!
Dr R Khajuria TEAM7 Destination: Baroda K-City Recently, 193 MSU Graduates offered job by Progen, BPO arm of Infosys at Pune, through Technology Promotion Trust (TPT) The Indian and Multinational IT / ITES firms are eager to come to a location, which has high speed internet backbone, highly Educated Graduates in abundance, IT environment, Vibrant Stock Exchange, International and Indian Banks, Security & Safety, and Cheapest Space in India! Thats why Baroda Knowledge City….
Dr R Khajuria TEAM8 Baroda K-City to house Companies / Firms / SMEs in - BPO (Business Process Outsourcing) Information Technology Software Hardware, Software Embedded Hardware Multimedia, Graphics, Animation Banking & Finance Advertising, Marketing and Publishing Training and Consulting
Dr R Khajuria TEAM9 Baroda K-City Project Acres Land proposed (Viability based) ½ Acre Plot x Plots Towers Phase I: 100,000 Sq ft Construction –1,000 to 20,000 Sq ft Modular Office Space Phase II: 100,000 Sq ft Construction Phase III: 100,000 Sq ft Construction Open Developed and Fibre Optic wired Plots
Dr R Khajuria TEAM10 Technology Infrastructure SEZ (Special Economic Zone) Status Internet backbone Tower with Satellite connectivity for direct Software Export & Communication Wi-Fi Technology or Wireless Fidelity connectivity –Voice & Data transfer 11 Mbps (802.11b) and 54 Mbps (802.11a). More to come PC Ready Air-conditioned Floors or Buildings for Large Software Exporters and BPO / KPOs SME Tower: PC Ready A.C. Offices for Software/BPO SMEs
Dr R Khajuria TEAM11 Knowledge Infrastructure Wired Developed Plots for Multinationals to construct buildings as per their design and needs IT Forum Vadodara Institute of Software Management & Training Institute of BPO Management & Training Institute of Knowledge Management & Training Institute of Consulting Management & Training 3 / 4 / 5 Star Hotels with Health Spa Service Apartments, Bachelors Hostel Indoor and Outdoor Sports & Entertainment
Dr R Khajuria TEAM12 Basic Infrastructure Green Projects (No Pollution) Recreation and Health Clubs, Swimming Pools Landscaped Gardens with Fountains 24/365 Power from GEB / Wind Farm / Gas Clean Water / RO System Several Hardware Suppliers, Transport Banks with Finance and ATMs Full Security and Safety Access to Airport, Rail, Roads in 20 minute
Dr R Khajuria TEAM13 SEZ Benefits: Imagine! A designated duty free enclave, treated as foreign territory for trade operations and duties and tariffs. 100% Tax-free Import, Export, Excise Duty and Sales Tax (Norms) 100% Income Tax Free to all Units in SEZ for 5 years, 50% free for next 5 years on Reinvestment of Profits 100% Foreign Investment permitted No Licence Required for manufacturing
Dr R Khajuria TEAM14 Knowledge City Project Cost (Rs Crore) Phase I. Total 3 Phases Land & Roads 100 Acres Buildings 100,000 Sq ft Equipment & Electrification Internet Backbone & Wi-Fi Misc Assets & Fees TOTAL Project Cost Phase-I30.00 Phase II and III
Dr R Khajuria TEAM15 Sources of Finance (Rs Crore) Phase I Equity Capital: 75%07.50 Associates / 25%02.50 Total Equity 33.33%10.00 Capital Subsidy: Govt of Gujarat05.00 Term Loan from 50%/66.67%15.00 TOTAL Project Cost Phase I(100%)30.00 Funds for Phase II and III shall be raised from suitable Debt/Equity leverage
Dr R Khajuria TEAM16 Funds & Permissions Bank Loan for Rs 20 Crore (Including Subsidy) Application to Chief Secretary and Secretary Science & Technology of State State Govt commitment and Subsidy Clearance by State Government State Govt forwards to Department of Commerce, Govt of India Notification issued as SEZ by Central Government Single Point Clearance to all Units coming to SEZ
Dr R Khajuria TEAM17 Promoters Sargam Infrastructure Pvt Ltd - SPV to implement project –BRG Group of Baroda –Promoters of Educational Institutions and Real Estate –Bakulesh Gupta & 75% Equity –Associates / 25% Equity proposed International Investors will be invited in Phase II High level Professional Team to advise, implement, market and manage Knowledge City Baroda Knowledge City Pvt Ltd to maintain
Dr R Khajuria TEAM19 Invitee Companies BPO Sector –Doshi Accounting Services, Baroda (subsidiary of London UK firm of Chartered Accountants) –ProGen / Infosys –Mphasis –IBM Consulting –Gujarati / NRI firms from India and UK, Europe, USA, Singapore, Australia, Middle East and Africa –Foreign Software / BPO / KPO firms Film Software –Animation, Computer Aided Design (CAD), Graphics
Dr R Khajuria TEAM20 Invitee Companies Banking Sector BPOs –HSBC / Citibank / Standard Charted Bank –ICICI / HDFC / Private Banks –State Bank of India / BoB / Public Sector Banks –NBFCs (Non Banking Finance Companies) and smaller Banks Consulting Firms –Payroll, Accounting, Medical Transcription, Finance Advertising, Marketing and Publishing Houses Technical Software and CAD Hardware manufacturers and maintenance
Dr R Khajuria TEAM21 Target Countries India: Gujarat, Mumbai, Pune, Bangalore, Chennai, Hyderabad USA: Silicon Valley, New York, other cities Europe: UK, Germany, France – 25 Countries Singapore Australia Malaysia Japan Africa?
Dr R Khajuria TEAM22 Development Strategies Make Baroda a Happening Place like Inox –E.g. RC Dutt Road for only 7-11 PM like a European city Set up large scale Training Centres in Baroda to create BPO trained Manpower –TPT, MSU, IT Forum and Private Sector have started –Other University cities of Gujarat should replicate –Educational Programs to start in BPO Operations & Management Announce a big project with a big bang! –This will attract large players from India, abroad
Dr R Khajuria TEAM23 Development Strategies Pre-feasibility Study & Report –Location selection –Prima-facie opinion of State Government Detailed Techno-economic Feasibility Study Fund / Loan Raising on competitive terms Office, Team formation, Design Marketing, Tie-ups, Brochure, Website Development & Construction of Phase I Time is critical: =18 Months for Phase I –3 Years permitted