project profile

1. Establishment of
Boilers, Turbines &
Generator sets
Manufacturing Unit
Heavy Engineering
Government of Gujarat

2. Page 2
Contents
Project Concept 3
Market Potential 5
Growth Drivers 6
Gujarat – Competitive Advantage 7
Project Information 9
- Manufacturing process
- Key components/technology required
- Location detail
- Raw material sourcing
- Infrastructure availability
- Key players
- Key equipment suppliers
- Manpower requirement
- Key considerations
Project Financials 15
Approvals & Incentives 16

3. Page 3
► Boilers are primarily used in
thermal power plants to burn
coal.
► Pressure parts constitute
65% of a boiler, which are
manufactured using alloy
steel i.e. P91, P92 (25% of
boiler), carbon steel (35% of
boiler) and stainless steel
(5% of boiler).
► Boilers comprise ~45% of the
BTG manufacturing cost.
Boilers
► Turbines are of four types –
steam, gas, hydro and wind.
► Steam turbine is the most
common and is mainly used
in thermal power plants.
► Hydro and wind turbines
are also gaining popularity
owing to rising use of hydro
and wind energy.
► Turbines, which comprise
35% of BTG cost are made
mostly from large-sized
castings & forgings.
Turbines
► Boilers, turbines and generator, a part of heavy electrical equipment market, are primarily used for
generating electricity in thermal power plants.
► Coal is burned in boilers to turn water into steam. The pressured steam pushes the turbine blades
and turns the turbine shaft, which in turn drive generators to produce electricity.
Project Concept
Boilers, turbines and generator (BTG) overview
► Switch and
control gears
► Capacitors
► Wires and cables
► Transformers
► Transmission
line towers
► Conductors
Generation equipment
Distribution
equipment
Transmission
equipment
►Boilers
►Turbines
►Generator
► Generators are primarily
made of magnets and wire
coils and auxiliaries such as
pumps, compressors, motors,
valves and coal pulverisers.
► They comprise 20% of BTG
manufacturing cost.
Generator
The project involves establishing a boiler, turbine and generator manufacturing unit in
Gujarat.
Sources:
1. “Bharat Heavy Electricals Ltd-initiating Coverage”, Bhavin Vithlani, Axis Capital Limited (May 2014), Accessed via
ThomsonOne
2. “Boiler Market In India”, accessed via, https://wikibizpedia.com/Boiler_Market_In_India

4. Page 4
Project Concept
► The proposed project involves establishment of a facility for manufacturing of Boilers, Turbines,
generator sets at Sanand Industrial Estate, Ahmedabad District
► The proposed facility will have three main manufacturing processes, namely, boilers
manufacturing, turbine manufacturing and generator manufacturing
► The key equipment required for turbine and generator manufacture include, Computer
Numerical Control (CNC) machine, rotor balancing equipment, generator testing equipment
► Key equipment required for boiler manufacturing include, Metal cutting machinery, Metal Plate
rolling machinery, welding machinery, metal milling machinery and non-destructive testing and
hydraulic pressure testing equipment
► The total cost of setting up an BTG equipment manufacturing facility at Sanand, Gujarat is
estimated to be ~INR 25 billion
► In addition to a local strong local demand for power generation capacity, significant electricity
capacity additions supported by Government investments will drive the demand for BTG
equipment
Project overview

5. Page 5
2.2
5.8
11.7
0.6
3.3
6.7
0.5
3.3
6.7
3.3
12.4
25.1
FY15 FY17F FY22F
Generators
Turbines
Boilers
Market Potential
Global electricity generation equipment market is expected to
witness modest growth
► The Indian BTG industry has the capability to manufacture boilers with super critical parameters
up to 1,000 MW unit size.
► It also manufactures various turbines in the range of 800–7,000 MW per annum, and generators
ranging from 0.5 KVA to 25,000 KVA.
► The industry is expected to witness robust growth owing to significant electricity capacity
additions, especially thermal, supported by large government and foreign investments.
► Numerous thermal ultra-mega power projects (UMPP), such as Mundra 4,000 MW UMPP in
Gujarat, Sasan ~4000MW UMPP in Madhya Pradesh and Tilaiya ~4000MW UMPP in
Jharkhand, are expected to drive significant demand.
1,308
3,369
2008-2015 2016-2030
Cumulative global demand for
generation equipment (US$ billion)
► The global heavy electrical equipment market,
including boilers, turbines, generators, wind
turbines and solar power systems, is
expected to grow at a modest CAGR of ~2%
during 2016-2030.
► Asia-Pacific region is expected to account for
largest (45%) market share owing to its strong
expected economic growth rates.
Indian BTG market is likely to increase eightfold during FY15-22
Source: The International Energy Agency
Source: Indian Electrical & Electronics Manufacturers’ Association
Indian BTG equipment market
(US$ billion)
Overall
CAGR
FY15-FY22F
33.6%
27.0%
41.2%
44.9%
Source:
“Indian Electrical & Electronics Manufacturers’ Association”, 68TH ANNUAL REPORT 2014 – 2015 (September 2015), accessed
via ieema.org/wp-content/uploads/2015/09/IEEMA-Annual-Report_2014-15.pdf

6. Page 6
41.3
78.7
88.5
93.0
10th FYP 11th FYP 12th FYP 13th FYP
Growth Drivers
Significant electricity capacity additions supported by government
investments will drive demand for BTG equipment
► Based on investment estimates and capacity addition targets, which is likely to double
during FY13-22, domestic demand for BTG equipment will be in the range of US$25-
30 billion by 2022.
► Furthermore, the Indian electrical equipment industry is projected to provide direct
employment to 1.5 million people and indirect employment to 2.0 million by 2022.
Expected electricity capacity additions
during various five year plans (FYPs)
(in GW)
67%
19%
12%
2%
Thermal
Hydro
Renewable
Energy
Nuclear
Installed total capacity – by
segments (FY13)
100%= 211 GW
211
400
FY13 FY22F
Installed total capacity in India (GW)
CAGR:
7.4%
~US$96 billion1
Planned investment on BTG equipment
during the 12th FYP (2012-17) by the
Government of India
Source: Indian Electrical & Electronics Manufacturers’ Association
Source: Indian Electrical & Electronics Manufacturers’ Association
Note: 1) All currency conversions at US$ 1 = INR 66.66 as on 9 June 2016.

7. Page 7
Gujarat - Competitive
Advantage
► The Gujarat Government is undertaking
various projects in the power sector to
significantly increase the state’s power
generation capacity to 31,000 MW by 2020.
► Majority of the projects will be coal-based
thermal power plants and hence are likely to
generate significant demand for BTG
equipment.
► Enlisted below are some of the proposed
projects:
Project
Expected
Capacity
Mundra ultra mega power plant 4,000 MW
Mundra thermal power plant 2,640 MW
Sarakhadi and Sinor thermal
power plants
2,000 MW
Pipavav thermal power plant 900 MW
Sugen gas-based power plant 990 MW
18,270
29,040
31,000
FY14 FY17F FY20F
CAGR:
9.2%
Total power generation capacity in
Gujarat (MW)
Source: Energy & Petrochemicals
Department., Government of Gujarat
Large investments by the Government of Gujarat (GoG) in the power
sector
Strong local demand
The Government of Gujarat intends to
invest US$18.2 billion in power
generation sector by 2020.
~US$22.8 billion1 for power
capacity additions
The Blueprint for Infrastructure in Gujarat
2020 (BIG 2020) – an integrated plan for
Infrastructure development – envisages an
investment of US$22.8 billion in the power
sector during 2010-2020.
4.6
18.2
Transmission
and distribution
Generation
Investments in power sector
– by segment (US$ billion, 2010-2020)
Note: 1) All currency conversions at US$ 1 = INR 66.66 as on 9 June 2016.
Source:
“Review of Blueprint for Infrastructure in Gujarat (BIG 2020) – Final Report Volume 1 – Summary and Vision” (August 2009), accessed via
http://www.gidb.org/Document/2014-12-31_112.pdf
“Manufacturing Sector Profile”, (January 2013), http://www.rubberking.net/images/pdf/Manufacturing%20Sector%20Profile.pdf

8. Page 8
Gujarat - Competitive
Advantage
Other advantages
Easy availability of raw materials
► Many key industrial clusters such as foundry & forgings, steel pipes and tubes, steel
re-rolled products and fabricated metal products are located in close vicinity of
industrial hubs such as Sanand industrial estate.
Ease of doing business
► Only state which comply 100% with the environmental procedures. Gujarat fares
highly when it comes to setting up a business, allotment of land and obtaining a
construction permit.
Flourishing economy
► Gujarat contributes 7.2% of the Nation’s GDP and shows leadership in many areas
of manufacturing and infrastructure sectors. Gujarat’s SDP (State Domestic Product)
at current price registered a growth of 11% during the year 2014-15.
Strategic location and excellent infrastructure
► Located on the west coast of India, Gujarat is well connected to the major cities of
the world by air and sea routes. The state has 45 ports, 12 domestic airports and 1
international airport in addition to an extensive rail and road network.
High availability of skilled manpower (engineers)
► As of June 2016, Gujarat had ~126
undergraduate engineering colleges and ~70
post graduate engineering colleges with
intakes of ~68,447 and ~6,694 students per
year, respectively.
► More than 80% of the seats were in self-
financed private colleges, while 15% seats
were in Government colleges.
Leading engineering colleges in Gujarat:
► Indian Institute of Technology (IIT),
Gandhinagar
► Sardar Vallabhbhai National Institute of
Technology, Surat
► Gujarat Technological University, Ahmedabad
► Nirma University - Institute of Technology,
Ahmedabad
8%
8%
13%
14%
17%
17%
23%
Others
Information
Technology
Electrical
Civil
Electronics &
Communication
Computer
Mechanical
Engineering seats in Gujarat – by
specialisation (Academic year 2014-15)
Total seats: 46,069 for admission
through Gujarat Common Entrance Test
Source:
1. “Baseline survey of the Technical Textile industry in India”, Office of the Textile Commissioner, 29 March 2016
2. “Manufacturing Sector – Profile”, Vibrant Gujarat website, 7 October 2014
3. “Gujarat – Growth and Prosperity for All”, Vibrant Gujarat website, 25 August 2014

9. Page 9
Project Information
Boiler manufacturing process1
1. Metal cutting 2. Rolling
3. Welding of
rolled plates
4. Milling
Steel and alloys of
steel are cut with the
help of metal cutting
machines
Metal plates are rolled
with the help of metal
rolling equipment, such
as hydraulic rollers
Rolled plates are welded
together
Tube plates are machined
by computer controlled
vertical milling machine
for precise hole tube
alignment
Furnace combustion
chamber and front
tube plate are fitted to
the boiler shell
6. Testing5. Fitting
Welded parts are subject
to pressure and non
destructive testing (NDT)
and hydraulic pressure
test
7. Fabrication
and installation
of ancillaries
Ancillaries such as
smoke-box, pressure
gauges, external electrical
components are fitted
8. Packaging
Insulation materials on the
boiler shell and colour
plates are placed
Key equipment2 required
► Metal cutting machinery
► Metal plate rolling machinery (hydraulic rollers)
► Welding machinery
► Metal milling machinery
► Non destructive testing (NDT) and hydraulic pressure testing equipment
Note: 1) The process depicted is illustrative and may involve further sub-steps and other processes as well
2) The list only includes key equipment and is not exhaustive
Source:
1. http://www.fangkuai.com/english/Intro.Asp?PageID=29

10. Page 10
Project Information
Turbine manufacturing process1
1. Blade selection
2. Fitting of
blades on the
rotor
3. Balancing
4. Final
assembly
and casing
Turbine blade are
selected depending on
the type of turbine
being manufactured,
such as high pressure
or low pressure turbine
Blades are fitted on the
turbine rotor
Rotors are balanced with
the help of rotor
balancing machines;
balancing weight may
also be inserted in the
grooves cut of the rotor
Finals steps, such as
inserting bearings and
assembling other parts
are performed, and lastly,
casing is put on the
turbine
Various parts of the
stator (stationary
portion of the generator
which keeps the
magnetic field aligned),
such as frame, core,
windings and covers
are made
2. Rotor
This step involves forming
of rotor shaft followed by
rotor winding and
inserting rotor retaining
rings
3. Testing
and
balancing
Rotor is tested and
balanced using rotor
balancing machines
4. Final
assembly and
cooling system
Bearings and other parts
are fixed, and cooling
systems, such as hydrogen
and air cooling systems,
are mounted on the stator
frame
Note: 1) The process depicted is illustrative and may involve further sub-steps and other processes as well
2) The list only includes key equipment and is not exhaustive
Key equipment2 required
Turbine manufacturing
► Computer Numerical Control (CNC)
machine
► Rotor balancing equipment
Generator manufacturing process1
1. Stator
Generator manufacturing
► Rotor balancing equipment
► Generator testing equipment

11. Page 11
Project Information
► Sanand industrial estate in Ahmedabad district is an indicative location for establishment of BTG
manufacturing plant. Alternatively, the plant can be set up in other suitable locations in Gujarat.
► The estate has a presence of many global and domestic companies across sectors such as
engineering (including heavy engineering), automobiles and ancillary units and electronics.
Sourcing of raw material
► Different grades of steel and other metal alloys are the key raw materials used in the production
of BTG equipment.
► Gujarat has several well-established metal manufacturing industry clusters from where raw
material can be easily sourced. Below is a list of the key industry clusters:
Industry Location (Distance from Sanand)
Foundry and forgings
► Kheda (53 Km)
► Anand (93 Km)
► Surendranagar (97 Km)
Steel pipes and tubes ► Kutch (378 Km)
Steel re-rolled products ► Ahmedabad (25 Km)
Fabricated metal products
► Ahmedabad (25 Km)
► Surendranagar (97 Km)
► Bhavnagar (159 Km)
► Vadodara (136 Km)
Location suggested: Sanand Industrial Estate
Sanand industrial estate: key highlights
Area 2,000 hectares
Land price INR3,600 per sq mt (FY16)
Focus sectors
► Engineering (including heavy
electrical equipment)
► Automobiles and ancillary units
► Engineering plastics
► Semiconductors
► Electronics
Existing major
engineering
players (base
country)
► Bosch (Germany)
► Allied Refractories (United States)
► Inductotherm (India)
► Alston Bharat Forge (France)
► Bao Steel (China)
► Motherson Sumi System (Germany)
► Valeo India (France)
► Sacmi Engineering (Italy)
Sanand industrial estate
► Vadodara (136 Km)
► Bhavnagar (159 Km)
► Kutch (378 Km)
► Panchmahal (171 Km)
► Bharuch (216 Km)
► Surat (288 Km)
► Valsad (361 Km)
► Bhavnagar (159 Km)
Source:: “Government of India Ministry of MSME District Industrial Potential Survey Report of Rajkot District (2014-15)”, MSME –
Development Institute (December 2014)

12. Page 12
► Uttar Gujarat Vij Company Ltd. (UGVCL) is
the power provider.
► A 66 KV substation is located within the
estate and a 400/220/66KV substation is
expected to be operational by FY17-18.
► Gujarat State Petronet Ltd. (GSPL) is the gas supplies to the estate through a well
established pipeline.
► The company needs to directly apply for gas to GSPL.
► Utility
► Gujarat Industrial Development
Corporation (GIDC) will provide water to
the proposed facility.
► As per norms GIDC will provide 13.5 KL
water per hectare area of land allotted.
Infrastructure
Availability
► Sanand has the advantage of a broad
gauge railway network.
► The nearest railway station is at
Ahmedabad at a distance of 40 km from
the Sanand.
► National Highways: NH–8A, which connects
Ahmedabad to Saurashtra and Kutch,
passes through Sanand.
► State Highways: SH–17 connects
Ahmedabad to Sanand and joins NH – 8A
leading to Kutch. SH-144, SH-135 and SH –
74 are the other important linkages within
Sanand.
► Ahmedabad International Airport is the
nearest airport located at a distance of
30 Km from Sanand .
► There are domestic airports located in
Baroda and Surat.
Air
RoadRail
► Sanand is connected to the following
ports in Gujarat:
► Dahej - 270 Km
► Kandla - 274 Km
► Hazira - 310 Km
► Mundra - 324 Km
Port
Logistics and connectivity
Water Power
Gas

13. Page 13
Company Technology/JV partner
Boiler manufacturing
capacity (MW, FY16)
BHEL
Alstom, Mitsubishi Heavy
Industries
15,000
L&T- MHPS Boilers Mitsubishi 4,000
Thermax Babcock & Wilcox
Energy Solutions
Babcock & Wilcox 3,000
Doosan Power Systems India Doosan 2,000
Isgec Heavy Engineering Foster Wheeler 2,000
AnsaldoCaldaie GB
Engineering
AnsaldoCaldaie 1,000
Project Information
Key players/ Potential Collaborations
Company Technology/JV partner
Turbine-Generator
manufacturing capacity
(MW, FY16)
BHEL Siemens, General Electric 20,000
L&T- MHPS Boilers Mitsubishi 4,000
Alstom Bharat Forge Power Alstom 5,000
Toshiba JSW Power Systems Toshiba 3,000
Turbine-Generators
Boilers
Source:
“Bharat Heavy Electricals Ltd-initiating Coverage” - Pankaj Sharma, Et Al, Equirus Securities (May 2016), accessed via
ThomsonOne database

14. Page 14
Rising Imports from China pose a threat to Indian manufacturers
► China’s market share in the imports of electrical equipment in India has significantly
increased from 15.26% in 2005-06 to 44.92% in 2012-13, growing at a CAGR of
45.46% during the period.
► Imported electrical equipment has a market share of 38.26% in India. Indian
manufacturers are also facing under-utilization of capacity as they have a utilization
rate of 70%. Players prefer imported boiler-turbine-generator (BTG) sets owing to
relatively faster delivery schedule and competitive cost of sourcing.
Slow pace of absorption of new technology
► Indian companies make low investments in innovation and R&D. There is slow pace
of absorption of new technology by domestic manufacturers of electrical equipment
and by user industries.
► According to estimates, less than 1% of the annual turnover of the industry is
invested in R&D. The manufacturers of electrical equipment focus on cutting costs
and not on innovative technologies. Most micro, small and medium enterprises do
not have the resources or the technical expertise to invest in R&D.
Delay in power T&D projects
► Power T&D companies that have invested in projects in India are affected due to
delays in the projects. The major causes of delay are political issues, delays in land
acquisition, forest clearances, and sometimes riots.
► These delays lead to cost over-runs, which do not get converted into price in most
cases, resulting in huge losses for manufacturers.
Non-standard procedures
► Most of the power utilities involved in generation, transmission and distribution of
power have non-uniform procurement policies and qualifying criteria for vendors.
► Tendering procedures are outdated and contracts are awarded based on L1 bidder1
and negotiations. Non-standard specifications being followed by utilities force
manufacturers to spend time on design and approval for each contract, which adds
to cost.
Note: 1) The person / entity that has bid the lowest in a tender out of all the pre-qualified bidders is called L1 bidder.
Key considerations
Project Information
Source:
1. “Chinese imports hurting electrical equipment units,” Business standard, http://www.business-standard.com/article/sme/chinese-
imports-hurting-electrical-equipment-units-114072801129_1.html
2. “IEEMA PRE-BUDGET MEMORANDUM 2013-14”, IEEMA, http://www.capitalmarket.com/prebudget/2013-
2014/Memorandum/Indian%20Electrical%20and%20Electronics%20Manufacturers%20Association%20(IEEMA)-
Direct%20Tax.pdf
3. “Cheaper chinese imports hurting electrical and electronics firms, says RPG Enterprises chairman Harsh Goenka,” The Economic
Times website, www.articles.economictimes.indiatimes.com/2012-01-19/news/30643232_1_electronics-manufacturers-
association-equipment-industry-manufacturing-growth

15. Page 15
Project Financials
Project specifications Details
Boiler, Turbine and generator manufacturing capacity 2,500-3,000 MW per annum
Land cost (250,000 sq mt @ INR 3,600 per sq mt) INR 900 million
Plant & Machinery INR 24 billion
Total Capital Investment ~ INR 25 billion
► The total project cost of setting up an BTG equipment manufacturing facility at Sanand, Gujarat,
will be ~INR 25 billion1 for a boiler and turbines-generator manufacturing capacity of 2,500-
3,000 MW per annum.
► The project cost is a ball park figure based on a recently commissioned (in May 2015)
INR13.5 billion turbine-generator facility by Alsom Bharat Forge Power Limited in Sanand,
Gujarat and a large (~5,000 MW) INR 40 billion boiler manufacturing facility commissioned by
L&T- MHPS Boilers in Hazira, Gujarat in January 2011.
Manpower requirements
► ~400-500 highly skilled manpower will be required.
► As the output increases, it can be ramped up to 800-1,000 people within 3-4 years of operation.
► In May 2015, Alstom Bharat Forge Power Limited (ABFPL), a joint
venture between Alstom and Bharat Forge Ltd., commenced
production at its new manufacturing facility for making super-critical
turbines and generators at Sanand in Gujarat.
Project specifications
Key products
300-800 MW sub-critical and super-critical
turbines and generators
Manufacturing capacity 4,000 MW per annum
Investment INR13.50 billion (~US$202 million)
Manpower 250, likely to increase to 650 by 2018-19
Area 185,000 sq mt at Sanand industrial estate
Alstom Bharat
Forge Power’s
turbine and
generator
manufacturing
plant at Sanand,
Gujarat
Recent projects
► Project cost
Source:“Production starts at Alstom-Bharat Forge’s new turbine and generator manufacturing facility in India”, Alstom (May 2015),
accessed via, http://www.alstom.com/press-centre/2015/5/production-starts-at-alstom-bharat-forges-new-turbine-and-generator-
manufacturing-facility-in-india-/
“L&T power bets Hazira facility will drive topline eightfold in four years”, accessed via, http://www.dnaindia.com/money/report-lt-power-
bets-hazira-facility-will-drive-topline-eightfold-in-four-years-1495445
“ABFPL's new turbine & generator production facility commences operations in Sanand”, Business Standard (May 2015), accessed
via, http://www.business-standard.com/article/companies/abfpl-s-new-turbine-generator-production-facility-commences-operations-in-
sanand-115052601541_1.html

16. Page 16
Approvals & Incentives
Approvals/clearance required Department to be approached and consulted
Incorporation of company Registrar of companies
Registration/Industrial license Secretariat if industrial assistance (SIA) for large and
medium scale industries
Allotment of land State industrial development corporation
No objection certificate (NOC) under
air and water pollution control acts
State pollution control board
Approval of construction and country
planning
► Town and country planning
► Municipal and local authorities
► Chief inspector of factories
► Pollution control board
► Electricity board
Finance For loans higher than INR 1.5 crore, all India financial
institutions like Industrial Development Bank of India(IDBI),
Industrial Credit and Investment Corporation of India(ICICI),
Industrial Finance Corporation of India(IFCI) etc.
Registration under state sales tax act
and Central and State excise act
► Sales tax department
► Central and state excise department
Code number for export and import Regional office of director general of foreign trade
Environmental clearance Ministry of environment, forest and climate change after
conducting environment impact assessment (EIA) for any
project
Hazardous waste import and export
approval
Ministry of environment, forest and climate change
Exiting business Ministry of corporate affairs
Government of Gujrat has introduced single window facilitation portal for investors providing
undermentioned benefits:
► Centralized system to monitor applications.
► User friendly and simplified application process for investors.
► The unit shall be facilitated through ‘Investor Facilitation Portal’ for obtaining all the
necessary state approvals/ clearances - https://www.ifpgujarat.gov.in
► Indicative List of Approvals
Sources:
1. “Gujarat Textile Policy”, Industries and Mines Department, Government of Gujarat, 5 September 2012
2. Approvals required for setting up plant,
http://dipp.nic.in/English/Investor/Investers_Gudlines/approval_clearances_required_for_new_projects.pdf, accessed 8 July
2016
3. “Environment clearance” http://envfor.nic.in/major-initiatives/environmental-clearances, accessed 8 July 2016
4. “Gujarat single window clearance, https://www.ifpgujarat.gov.in/portal/jsp/aboutUs.jsp, accessed 8 July 2016
5. “Exiting business, http://www.mca.gov.in/MinistryV2/CloseCompany.html, accessed 9 July 2016
6. “Manufacturing Sector – Profile”, Vibrant Gujarat website, 7 October 2014

17. Page 17
Approvals & Incentives
Gujarat Industrial Policy 2015
Government of Gujarat has announced an ambitious Industrial Policy, in January 2015, with the
objective of creating a healthy and conducive climate for conducting business and augmenting the
industrial development of the state.
Category of
Project Location
(Taluka)
% of eligible fixed
capital investment
entitled for
Incentive
% of Net VAT
reimbursement to
the unit
% of Net VAT to be
paid to
Government
Incentive period
(no. of years)
1 100 90 10 10
2 80 80 20 10
3 70 70 30 10
Net VAT incentive will be reimbursed to the industrial undertaking in one financial year will not
exceed one-tenth of the total amount of eligible incentive.
Quantum of incentives
Net VAT incentives
Classification of the Project Amount (in INR crore)
Ultra Mega Industrial Unit 500
Mega industrial Unit 400
Large Industrial Unit 150
Micro, Small or Medium Industrial Unit 50
Mega projects have been defined under the policy as having an actual investment of atleast INR
1000 crores and projects which provide employment to atleast 2000 persons (both of these
conditions must be met in order to be deemed a mega project. The assistance to such projects
under the scheme are:
 Financial assistance to the Mega/Innovative Projects will be decided on merit on a case to case
basis
 The State Government may make special dispensation for the land use and tenure conversion
for Mega / Innovative Projects.
 If the Mega/Innovative require support of ancillary units and if such support is to be extended by
MSME units, GIDC would identify land for setting up of such MSME ancillary units
 GIDC would assist, if required, in identifying land for setting up of Mega/Innovative Projects as
their anchor clients
Industries in the Sector can opt for either the general incentives under the Gujarat
Industrial Policy- 2015 or the incentives under the scheme for Mega / Innovative Project as
provided below:
The incentives under this policy will be available to all the Talukas listed in Government Resolution
dated 25/7/2016 except areas falling within municipal corporations.

18. 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.
Office of The Industries Commissionerate
Block No. 1, 2nd Floor, Udyog Bhavan,
Gandhinagar 382 010. Gujarat
Ph.: 23252683/23252617
Email ID: iccord@gujarat.gov.in
Gujarat Industrial Development Corporation
Industries & Mines Department
Office of Industries Commissioner
www.gidc.gov.in
www.imd-gujarat.gov.in
www.ic.gujarat.gov.in
Industrial Extension Bureau
www.indextb.com