Gujarat International Finance Tec-City

Why Invest in India?

India has witnessed steady growth and is set to become an economic superpower in the 21st century
GDP growth trajectory

Why growth is likely to sustain

Real GDP US$ billion +5% +4% +3% 3% +5% +6%
Progressive and stable environment

625 473

Commitment to liberalization across political parties, both central and state. WTO an additional catalyst A healthy economic environment with stable financial markets Increased consumption

279 60
1950

86
1960

118
1970

159
1980 1990 2000 2005

Fast growing middle-class with increased spending ability. A young population ensures savings and investment rates will rise Infrastructure growth Government, private and international investments in telecom, transport, power and IT parks are driving growth Emergence of strong corporate India Home grown local innovators and MNCs alike have shaped the landscape and set up large scale profitable businesses The next wave of manufacturing will further bolster GDP growth India will become a global sourcing base in skill intensive sectors

GDP Contribution (%)

Contribution to incremental GDP growth of major world economies*

20.1

2.1
2000

5.0

2020

2050

*Major economies considered are the BRIC and G6 countries Source: Press Search, Goldman Sachs BRIC report 2003
3

India is a powerful Domestic Consumption-led Growth Story

Positive Age Demographics

(in mn) World India Africa China SE Asia Lat Am. W Asia US Europe Japan 10 0 -3 17 44 33 31 64 314 71

Favorable Urbanization Trends

No. of people (mn.)
450 400 350 300 250 200 150 100 50 0 1990 2000 2010E 2020E

Addition to working population by 2010

Consumer credit Penetration (%) % to GDP

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Growing Middle Class

No. of Households (mn.) Rich

11

Middle

46

124

Low

96
2003

96
2013

Spore

Taiwan

Korea Malaysia

HK

Thailand

India

Indias growth is driven by domestic demand and hence is strongly insulated from the perils of the other developed & developing Economies
4

How attractive is India as a destination for doing Business?

India is emerging as an Off shoring Hub for the entire spectrum of Services
Off shoring Sweet Spot for Indian Services companies Increasing number of Pharmaceutical Companies of US and UK are out sourcing their clinical research to India Leading law firms have been off shoring their operation to India Global IT executives willing to move higher-end work offshore; Indian service providers moving up the value-chain Citi, Lehman, JPMC, Morgan Stanley, Meryllynch are off shoring not just the back end but also the front end business to India India- Most Favored Offshore Destination
CIO views on % increase in Offshore spending for specific locations* India China Other Asia E. Europe Canada Other Euro. Lat Am 3 2 22 20 27 38 56

* change relative to current spending levels Select Global companies with Offshoring presence across Services spectrum
Source: Morgan Stanley Chief Investment Officer Survey, May 2005

CRO

Legal

IT

Finance

Source: Citigroup Smith Barney

6

What are the USPs for investing in India?

Key encouraging factors for investing in India

Healthy Regulations

Reserve Bank of India the central bank of India, known for its prudence & taking tough stance and single handedly responsible for insulating India from South East Asian Crisis and Sub-prime Lending bust Securities Exchange Board of India the regulatory authority for Capital Markets has revolutionized the Indian Capital Markets making it one of the most transparent, efficient and healthy market

Reverse Migration

Indian has been victim of brain drain to developed countries like USA and UK for decades However, with opportunities available in India, the scene is reversing and reverse migration is on the upswing

Low Political Risk

India is today the fourth largest Economy and growing at 9% No Government or Political Party can stall this momentum of the growth

Strong Entrepreneurial Culture

India ranks high on the entrepreneurial culture among both the developed and developing countries

International Acceptance

American policy makers have repeatedly emphasized importance of developing deeper and more meaningful ties with India, which is very evident in the current Nuclear Power deal

Labour Pool

India viewed as a key business destination primarily for its abundant, cost effective and talented workforce

A unique combination of factors make India a Compelling Haven for Investment

8

Why is Infrastructure the need of the hour for India?

India : A fast growing economy but trailing in Infrastructure

A fast growing economy
China India Russia Malaysia Indonesia Thailand Brazil
0 2

...is a laggard on Infrastructure

10.1

Share of Highways*
Argentina Hungary Australia Malaysia 43.5 33.9 28.0 17.8 14.7 11.9 2.4
0 10 20 30 40

Country
Germany Switzerland Hong Kong China Russia India

Score (out of 7) Rank (out of 125)

6.51 6.34 6.29 3.54 3.52 3.50 3.29 1 2 3 60 61 62 71

60.6

8.6 6.7 6.0 5.3 5.1 3.6

4 6 8 10 12

Germany US UK India

Brazil

Average % GDP Growth from 2003-06

International Infrastructure Competitiveness Ranking

Figures in %
50 60 70

Source: IMF, Crisil Global comparison of India in Construction, Energy, Road & Air Transport
* Highways as % of paved roads Source: World Road Statistics; WDI 2006, Crisil

Construction Spending ($ Bn)

USA Japan China Germany UK Canada India Brazil
0

Energy Consumption
1,289
14,000 12,000 10,000 8,000 6,000

Air Transport : Freight Traffic Country

USA Japan China UK

(Consumption per Capita, KwH)

Year 2000
30,166 8,672 3,900 5,161 1,864 1,731 1,535 548 413

Year 2004
37,450 8,938 8,188 5,698 2,599 1,898 1,499 689 434

610 440 292 211 160 100 65

200 400 600 800 1000 1200 1400

Malaysia
4,000 2,000 0

Australia Brazil India USA Japan Russia World Brazil China India Indonesia Source: World Development Indicators

Source: Global Insight

There is humungous potential to invest in Infrastructure in India

10

(million tonnes/km)

Mumbai : A case in point

11

Indian Cities are creaking under pressure : Mumbai, a case in point

Plight of a typical Indian City lagging both on Economic Growth & Quality of life

GDP growth estimates*. 1997-98 to 2005-2006, CAGR, Per Cent 9.6% 6.1% 5.2% 4.8%

Mumbai in Reverse Gear Quality of Mumbai life has worsened in last ten years with a steep decline Slums have proliferated and congestion, pollution and water problems have sky rocketed Mumbai ranks poor 163rd (out of 218 cities world wide) on Forbes quality of life survey The situation is expected to worsen over the next decade with an expected population increase of over 2 million

Source : Department of Economics & Statistics, McKinsey & Co., Team Analysis

Mumbai contributes $ 10 Bn in taxes to the State & Center annually and gets in return a grossly inadequate $ 250 Mn for Capital Expenditure every year
12

Why is Urbanization taking place?

13

Urbanization is a dominant trend in Indias growth trajectory

Urban Population as % of Total Population since Independence

40% 30% 23.3% 20% 10% 0% 17.3% 18.0% 19.9% 27.8%

Projected Share of Urban Population in Total Population (%)

40% 33.3% 37.9%

35.0%

25.7%

30% 20% 10% 0%

29.0%

1951

1961

1971

1981

1991

2001

2005

2010

2020

2030

No. of towns/ Urban Centres

2,843

2,365

2,590

3,378

3,768

4,368

Total 1,100 Population (Mn)

1,200

1,350

1,450

While urbanization has gathered significant momentum in India, the economy with its current urbanization level of 29% is significantly behind its peers ( S. Korea 81%, Malaysia 65%, Indonesia 48%, China 43%) Urbanization is spurred by both Push and Pull Factors Push Deteriorating agricultural productivity, Unemployment in villages, Caste Barriers Pull Better opportunities in Cities (higher construction activity, Manufacturing & Services sector growth) Future growth in Indias urbanization is expected to be driven by net births and net migration in equal measure

Source: India Infrastructure Report Oxford (2006), UN World Urbanization Prospects (2005)
14

And has led to emergence of select cities with disproportionate concentration of population and wealth

Increasing Urban Population concentration within Class I cities* (% of total urban population)
80% 57.2% 51.4% 44.6% 40% 60.4% 65.2% 68.7%

60%

Mega & Mainstream Cities accounted for 45% of urban population and 55% of total
1951 1961 1971 1981 1991 2001

20% 0%

urban disposable income in 2001

* As per Census, urban centres are classified into 6 categories based on population size, Class 1 being >100,000 population and Class VI being >5000 Type (Parameter) Mega Cities (Population > 4 mn) Mainstream Cities (Population > 1 mn) No..s 7 Cities Delhi, Greater Mumbai, Ahemdabad, Bangalore, Chennai, Kolkata, Hyderabad Patna, Faridabad Bhopal, Ludhiana, Jaipur, Lucknow, Madurai, Nashik, Pune, Cochin, Varanasi, Agra, Amritsar, Vishakapatnam, Vadodra, Surat, Kanpur, Nagpur, Coimbatore, Meerut, Jabalpur, Jamshedpur, Asansol, Allahabad, Vijaywada, Rajkot, Dhanbad, Indore Guwahati, Itanagar, Jammu, Raipur, Panaji, Shimla, Ranchi, Trivandrum, Imphal, Shillong, Aizawal, Kohima, Bhubaneshwar, Gangtok, Agartala, Dehradun, Bodh Gaya, ujjain, Puri, Ajmer, Nainital, Mysore, Pondicherry, Chandigarh, Srinagar, Mathura, Haridwar, Nanded Urban Centres contribute more than 60% to gross national domestic product

28

Climbers (Identified Cities with Population < 1 mn)

28

Source: India Infrastructure Report 2006, Oxford, Census, NIUA Report 2007
15

The Bangalore issue

16

Quality of infrastructure services for urban dwellers has not kept pace with the rising economic significance
Case in Point: Bangalore City has emerged has an economic hub..
City Snapshot The 5.8 million people urban agglomeration has a literacy rate of 73%, way above the national average of 55% (2001) Its Net Domestic Product (CP) has grown at an impressive 10% between 2001-05 Home of maximum no. of Venture Capital Firms City expects 35 mn sq ft new residential development in 20078 and 27 mn sq ft new commercial/retail in next 2 years

Yet, basic infrastructure services have become worse Outcomes/ Service Delivery Measures Slum Population (%) Water Connection (%) Per capita portable water availability (LPCD) Water Leakage (%) Past (1991) 7% 26% 150-160 13% 30% 24 mins Current (2001-02) 12-18% 25% 80-100 33% 18% 40 mins

Key Industries ITES Emerged as Silicon Valley of India in last decade City contributes 38% to Indias IT exports (total - $ 22bn) Total IT/ITeS employees in the city are estimated at 345,000 with expected addition of 600,000 in next 3 years BIOTECHNOLOGY- City Accounts for 47% of the approx. 265 Bi-tech co.s in India ELECTRONICS/HARDWARE Sector generates employment for ~70,000 in the city, housing several domestic and multi national companies GARMENTS Sector generates employment for ~500,000 in the city, manufactuing leading brands viz. Crocodile, Levis, Lacoste, Tommy Hilfiger, Lee, Arrow, Van Heusen Source: CRISIL City View 07, India Infrastructure Report 2006, Oxford
17

Access to low cost sanitation facilities Travel time (one-way work trip, mins)

.. The citys future under status quo raises alarms Outcomes/ Service Delivery Measures Population (million) Population Density (000/ sq km) Vehicles per road length Sewerage Infra. Connections(%) Water Supply (lpcd) Current 5.7 10,755 695 21 90 Projected 2021 10.3 13,071 1902 18 49

What is the Solution?

18

In this light, it is critical to focus efforts on developing existing and/or new cities
Development options for key urban centres
Target 1 Develop the existing cities in India, viz. Mumbai, Bangalore, Chennai, Delhi, Chennai, Hyderabad, Ahmedabad Rational Established cities are thriving centers of growth Difficult to replicate the economic opportunity of old cities Target 2 Develop New cities in India Rational India requires new cities as old cities even after development will not be able to take the urbanization pressure New cities can be developed with long term planning Target 3 Develop Satellite towns around Old Cities and New cities in India, like New Mumbai around Mumbai Rational Take off pressure from the Old Cities At the same time, help exploit the economic opportunities of the Old Cities

Option 3
Development of Satellite Towns which shall be connected to Old Cities through a Mass Rapid Transport System

Satellite Towns MRTS MRTS Satellite Towns

Established Cities

19

What is the Rationale for the Solution?

20

Our Dual Return Approach

Before Infrastructure Development After Infrastructure Development

Distance of 35 40 Km

Developed City with infrastructure in place Real estate price 5x

After a period of 5 years Real estate price 8x

Tr Ma an ss sp R or ap t S id ys tem

Land parcel near to developed city Real estate price 0.5x

Dual returns for Investors Develop Infrastructure on the Land Parcel Real estate price 5x

Aim is to Develop Urban Infrastructure creating Captive Demands in Infrastructure and share the upside with the investors in infrastructure as well as Real Estate

Steady stream of Cash Flows per annum Example : Independent Power Plant IPP shall be a JV (74%:26%) between a Power Major & the Fund, hence part of the returns shall come from the Profits of the IPP in form of Dividends

Investment in Allied Infrastructure of the New City Road/ Highways/ Freeways Civil Structures Water Supply Sanitation Independent Power Plants Telecommunication Waste Management Health Care
Along with

The appreciation of Real Estate Price As in this case from 0.5x to 5x 21

Investment in Real Estate of the New City

Shanghai : A Case in point

22

Shanghai Proven Case

Indices of Gross Domestic Product in Shanghai (1952 =100)
25,000.00 Banking & Insurance 20,000.00

Shanghai, located in one of the most rapidly developing parts of the world, is amongst the favored few that has acquired large economic, cultural, and
Real Estate

Before investment in Infrastructure

15,000.00 10,000.00

After

symbolic roles in the continuing trend of urbanization where service activities - like IT and finance related - take on an greater prominence
Some of the progresses made by Shanghai Has coordinated development of transport, housing, and infrastructure to minimize congestion

GDP 5,000.00 Transport & Communication 0.00 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Source: Shanghai Statistical Bureau, 1999 Improvement in Shanghais Infrastructure Services, 1991 and 1998 1991 Per capita paved road (square meters) Per capita open space (square meters) Per capita living space (square meters) Capacity for treating wastewater (million tons/day) Access to gas (percent) Per capita annual domestic water consumption (tons) Wastewater treated (percent) 2.3 1.1 6.7 0.4 62.0 71.2 7.6 1998 5.0 3.0 9.7 1.9 and permitting mixed commercial and residential use of prime 91.5 urban land 104.6 30.2 entrepreneurship, skills, and labor from within the Source: Shanghai Statistical Bureau, 1997 & 1999, Shanghai Construction Commission, 1997 municipality and through migration
23

Has improved urban standards of living, through organizational streamlining and use of new financial instruments

Brought in Industrial consolidation accompanied by land use policies inducing a shift of industry away from the core areas

Has taken measures to ensure an adequate supply of

Our Approach to the Solution

24

Improving existing cities & creating Self-sustaining New Cities Residential Housing Projects
Target 1 Develop New Cities Urban Infrastructure Development Develop Existing Target 2 Cities

Gives Opportunity to develop different aspects of infrastructure considering their interdependability & long term demand of next 100 years Gives opportunity to take advantage of the already thriving economic potential

Well panned residential housing projects Walk to work layouts

Technology
Broadband FTTP WiFi/ Wimax Shared IT Services

High rise Business District

Benchmark office high rise district Anchor developers to be given land at concessional rates; efforts to be made in conjunction with developers to attract key anchor tenants

New Paradigm in Urban Planning

Citys master plan to serve as the Vibrant Hub

Basic Infrastructure
Uninterrupted and highly reliable power supply potentially generated through a captive power plant in the long run Reliance on non-conventional sources

Social Infrastructure
Educational institutes to be established International schools for primary education Privatised hospitals with infrastructure to be established

Overall Connectivity/ transport

MRTS connecting old cities Expressway to airport High speed train to Bombay

Retail cum entertainment hubs

High quality entertainment malls to be set up Over 60% of the space is planned to be green

25

What is the Deal?

26

Gujarat International Finance Tech-City - GIFT

An Opportunity
Booming demand in Financial & IT Services Indias financial capital, Mumbai, saddled with crumbling infrastructure and sky-rocketing cost of business operations Lack of any methodically planned and developed world-class International Finance Centre (IFC)

A Pro-active State Govt

State Govt. of Gujarat (GoG) spearheading a slew of initiatives to usher economic prosperity through public-private efforts and investment in the State Gujarats economy recorded CAGR of 9% in last 3 years, set itself the highest target CAGR of 11.4 % under Indias 11th 5-year plan

IL&FS
A premium institution with a proven track record in infrastructure and financial services

Pioneer in launching infrastructure projects on a PPP model in India Widespread experience in planning and development of large-scale commercially viable Infrastructure projects

GoG and Infrastructure Leasing and Financial Services Ltd. (IL&FS) join hands to conceive, plan and develop Gujarat International Finance Tec-City

27

Where is the Project?

28

GIFT is strategically located in close proximity to the commercial hub of Gujarat as well as Mumbai

Distance (kms) Ahmedabad Gandhinagar Mumbai

@

Primary Travel Mode Road@- Dedicated 8 lane expressway; LRTS Air* ( 1 hr flying time), Train (8 hrs)

12 8 545

Gujarat

GIFT site currently abuts a four lane National Highway connecting Ahemdabad and Gandhinagar (LRTS and expressway to be developed)

* Nearest Airport to GIFT, Ahemdabad Intl. Airport, is very well connected to Mumbai with over 12 flights afrom day (one way) The City additionally benefits the Sabarmati river demarcating its eastern boundary

GIFT

Gandhinagar

29

What is the Value Proposition?

30

GIFT presents a compelling value proposition

A brand new 506 acre city designed to be a globally benchmarked International Finance Centre Located in the rapidly developing state of Gujarat between its State capital, Gandhinagar, and its commerce capital, Ahemdabad To serve as the central business hub for an Integrated Township sprawling over 27,000 acres Developed with the full backing of a proactive and result oriented State
World Class Infrastructure Strong Govt. Backing Defined Positioning

Govt. Service emerging business requirements in financial services & IT/ITeS sectors that Mumbai is not in a position to address In close proximity to Ahemdabad, a premium tier 2 city, and also close to Mumbai vis--vis other cities Be a first of its kind development in the country in terms of scale, scope and quality of offerings State of the art physical/social/ IT infrastructure and world class connectivity at affordable price points Special Economic Zone benefits including concessionary tax regulatory policies for all the stakeholders Provide opportunity for business at less than half the cost of Mumbai and

GIFT

Excellent Connectivity

Integrated Utilities

31

Who are the Partners to GIFT?

32

Consultants Engaged by GIFTCL

Design & Architecture Consortium of East China Architectural Design Institute (ECADI) & Fairwood India Pvt. Ltd.

ICT Advisory Services

Market Demand Assessment

Talent Demand Assessment

Environmental Aspects

IL&FS Ecosmart Limited

Process Management

33

What is the Bouquet of Offering?

34

This new IFC would be a world-class bouquet of offerings

35

What is the Macro-Economic Perspective?

36

By 2020, there is potential for ~10 million centralisable jobs in India with ~5-6 million relating to Financial Services
Estimated no. of jobs (000) 1,400-1,500

Financial services operations

800-850 400-425

1,000-1,100 1

Core Financial Services

Financial services corporate centre

350-375

575-625

5-6 mn financial services jobs are likely to be

120-130

created by 2020 ~ 2.5 mn core financial services ~ 2 mn IT financial services ~ 0.8 mn ITES financial services Additionally, Ancillary and Support Services would add similar job opportunities

Select product markets*

10-15

40-45

18-22 2

Capital Markets and Trading

10-15 6-8

IT services

~40% of the IT/ITES jobs are created in the financial sector

5,100-5,200 3,450-3,550 2,050-2,100

1,700-1,800 1,200-1300 4

ITeS/BPO services

680-700

2010 banking, Private banking, Product development, microfinance etc. Source: Mckinsey analysis
37
*Corporate

2015

2020

37

What is the Target Focus?

38

GIFT would focus on nine specific opportunities emerging within Financial Services sector
GIFTs focus segments Financial services operations 1. National Financial services operations hub

Core Financial Services

Financial services corporate centre Select product markets

2. 3. 4. 5.

Regional/functional Head quarters for financial services players National head quarters for players Private Banking hub for NRIs/ Regional HNWs International microfinance hub GIFT aims to generate 0.3 mn direct and 0.6 mn indirect

6. Capital Markets and Trading 7.

International commodity trade hub Participation in global capital markets

employment by 2020

IT services

8.

Global Hub for IT services for Financial services sector

ITeS/BPO services

9.

Global Hub for BPO services for Financial services sector

39

What is the Value Proposition for the Occupier?

40

Value proposition for the Occupiers in GIFT

Comparison of Cost Structure across Cities
Cost & Facilities Advantage for the Occupier

Particulars Manpower Cost (Rs/ hr) Lease Rentals (Rs/month) Workstation Cost (Rs/ 100 sq ft seat/ annum)

Mumbai 52 375 331,110

Delhi 40 300 259,350

Bangalore 45 70 128,310

Ahmedabad 17 40 78,000

Source: NASSCOM, DTZ

How GIFT if more attractive than any other City in India

Infrastructure Advantage for the Occupier

Both, the Manpower Cost and Workstation Cost at GIFT would be comparable to those in Ahmedabad It has to be noted that GIFT is planned to be developed and benchmarked as an International Financial Center for India and hence the quality of infrastructure at GIFT will be far superior as compared to the existing infrastructure in these cities

Advantages of setting up a New City like GIFT Infrastructure developments and linkages are done from scratch keeping in mind long term growth in urbanization Regional infrastructure and economic growth drivers are cherry picked to suit the occupiers need Reduction of dependence on local government by Municipal bodies and the new city is run as an enterprise with thrust on self-governance Regulatory framework is tailor made as per the needs of the city
41

Land and sectoral demand-supply scenario are chosen keeping in mind future growth and land availability Demographic profiles is well balanced and controlled New city attracts world class Educational Institutes Restricted access and high surveillance keeps law and order in check Availability of quality workforce is a planned concept with thrust on specific sectors to create ample opportunities and good quality of life to sustain the workforce

What is the Development Plan?

42

The citys layout earmarks judicious space for mixed-use development backed with a robust transportation network

43

43

What is the Project Configuration?

44

Real Estate would be a key feature of GIFTs development plan

Real Estate at GIFT has been planned to cater to 0.3 million working population and 50,000 resident population Commercial development is the primary focus of development with ~70% built up space dedicated to it However due emphasis would be given towards residential development and social infrastructure as they are vital to keeping the city alive GIFT enjoys FSR of 3.65 which would be predominantly used vertically thereby maximizing open spaces and green areas (65% space) GIFTs tallest building, Diamond Towers, would dominate the city skyline with a height of 400 m

Land Use (%) Commercial Mixed* Public & Semi Public Recreational Utilities Transportation Total 21.6% 16.5% 12.8% 30.0% 1.1% 18.2% 100% 506 acres

Built Up Area (%) 67.8% 20.4% 11.3% 0.2% 0.3% 100% mn sq ft 75

Height of 3 landmark buildings above 250 m , 11 buildings above 150 m

* Mixed Use Development to comprise of Residential and Commercial including offices, retail, and recreational 45

45

How does GIFT compare Internationally?

46

The City has been designed to be at par or above with Globally Benchmarked IFCs

Paris La Defense

Tokyo (Shinjuku)

London Dockyards

Pudong (Lujiazui)

GIFT

Paris La Defense Land use Scale (sq km) Construction Scale (in mn sq m) Floor-area Ratio Greenbelt (in thousand sq m) Height (m) 1.6 2.5 1.56 40 200

Tokyo 1.6 1.6 1.00 120 250

London 1.05 1.1 1.05 50 250

Pudong 1.7 4.5 2.65 363 490

GIFT 2.02 7.5 3.65 615 410

In terms of scale and sheer physical scope, GIFT is being designed to be at or above par with presently acknowledged Globally Benchmarked International Financial Centers (IFCs)

47

How does GIFT look?

48

Bird-eye view of Real Estate Development Plan at GIFT

Diamond Tower

Convention Center

Fortune Island City Greens

Gateway Towers Mixed-use Developments*

Transport Node /Hotel

* Mixed Use Development to comprise of Residential and Commercial including offices, retail, and recreational 49

49

What are the Land Mark Buildings?

50

Some of the Signature Developments at GIFT

Diamond Tower
The dominant feature of the city Height - 400 m

Gateway Towers
Mark entrance to the city from arterial streets creating identity for the city axis

51

51

Some of the Signature Developments at GIFT

Dream River
Makes identifiable meeting places with 15m wide promenade. This promenade will also function as a major spine for pedestrians pedestrians and will be a significant recreational facility.

Convention Center
The low rise building along the river edge on the Fortune Island marks a landmark with the proposed art galleries and museum

Transportation Hub

Transportation Hubs mark the edge of the city 52

52

What is the Infrastructure Story?

53

GIFT Infrastructure Overview

All infrastructure services to support businesses including connectivity, IT, walk-to-work housing, security and services to support a globally acceptable quality of life have been integrated into the design of the city Common aspects of infrastructure needs and requirements are integrated to ensure planning for sustainable and affordable development to meet the growth of GIFT. Modern and innovative technology in infrastructure provision is utilized to improve service levels and to attain a high quality environment. All infrastructure and utilities service providers are controlled & coordinated and Targets for quality waste, water and energy resources are set within GIFT.

Investment Opportunities for Infrastructure Developers: Core Infrastructure - Site Development - Landscaping - Maintenance Systems Transportation & Utilities - Roads and Transportation - Water Systems - ICT - Power Generation Distribution - HVAC - Domestic Gas Distribution - Waste Management Systems

and

54

What is the Transportation Linkage?

55

GIFT Infrastructure: Transport

Transit oriented transport Walk to work after exiting a major node of the public transport system Segregated vehicular and pedestrian movement and abundant parking provision Aim to achieve a modal split of (10:90) between private & public transport Road network of freeways, expressways, highways, arterial roads, collector streets, and pedestrian paths Intra-City Travel Combination of LRTS and CRT Bus Lanes linking neighborhoods and districts Max trip time estimated at 30 minutes between the farthest points of the city Inter City Travel LRTS at GIFT to be linked to the proposed MRTS between Ahemdabad and Gandhinagar (independent Govt. plan) thereby linking GIFT with other urban regions in Gujarat

Completely developed site with high quality internal roads and landscaping Rationalized and efficient transport planning, design and engineering resulting in Reduced stress on land as resource; Reduced air and noise pollution; Energy efficiency; Increased green belts Accessibility and linkages: LRTS, CRT Underground arterial road Abundant parking Space
56

What is the Road, Water, Landscaping Plan?

57

GIFT Infrastructure: Roads, Water, Landscaping

Roads
Integrated Multilayered roads from offices to neighborhood. Including Roads (incl. bicycle paths, pathways, etc.) Underground Arterial Roads River Tunnels and Bridges Main External Roads and Expressways

Landscaping
The GIFT city provides landscaped zones and hierarchy of green space: City level Central green Peripheral greens / Buffer greens Public greens Greenways Neighborhood Level Public greens

Water
Sustainable use of water resources i.e. implementing measures for more efficient use of water and by encouraging water recycling and rainwater harvesting Integrated water management system where supply and use viewed as integrated cycle

58

What is the support on Utilities?

59

GIFT - Utilities Power Generation & Distribution

Efficient supply of power to be ensured to cater to the growing requirements of the city Power reliability to meet the standards set for international finance districts and IT hubs 24 hr. dedicated power supply Power to be generated from clean sources only

Solid Waste Management

Rigorous solid waste management system with special emphasis on e-waste management judicious site selection, technology and reclamation

Sewage
Network and treatment plants to ensure zero discharge into Riverine system Efficient storm water drainage systems

Direct Cooling/ HVAC System

Use of district cooling systems which requires less electric power than conventional air conditioning , better quality cooling, cost effective, environmentally friendly and space saving

Gas
Dedicated access to gas a through piped network

60

How good is the Telecom Connectivity?

61

GIFT - ICT
Access to high speed network and cutting edge IP based networks allowing seamless voice, video and data integration and use of advanced end user applications. Greater bandwidth (due to wired city fibre connected) a bandwidth of 100 Mbit/s scalable to Gbit/s would be possible from the start. Residential and intelligent building services such as high speed internet access, telephony services (VoIP, PSTN), IPTV, video on demand, home security (CCTV alarms), automation (lighting & heating control, energy management, appliances and remote control, etc.) A robust tier IV date centre with guaranteed SLAs for uptime with properly backed up remote disaster recovery site as fall back. Local area networking, intra office/building wireless access, video conferencing. A self contained network management and operations to support the services and performance SLAs.

Speedy setting-time for businesses with Plugand-Play services Access to high speed network infrastructure and modern technology Secured and converged network lower cost of ownership and improved employee productivity Universal access gateways and interfaces for citizens on the move, anytime, anywhere Additional features such buildings, e government, etc
62

as

intelligent

Does GIFT have an SEZ status?

63

GIFT Ensuring business friendly regulations and policy

The city would be built on a 50:50 DTA and SEZ structure. principle approval for SEZ has been obtained In

GIFT aims to put in place benchmark regulations and taxations incentives to attract participants e.g. single window interface for central/state approvals, paperwork reduction and procedural simplification, SEZ/DTA tax benefits State Govt. backing is one of the key founding pillars for GIFT Govt. has helped GIFT acquire 506 acres of Land Further support in ensuring speedy project execution by facilitating simpler administrative/state procedures

64

What does GIFT have in store for the Investors?

65

GIFT is a Business Model with strong Socio Economic Benefits

GIFT would catalyze significant investment potential in the region through multiplier effect, making Gujarat a destination for Financial Tourism Is estimated to create direct employment potential of up to 0.3 Mn in 10 years & indirect employment would be to the tune of 0.6 Mn Is expected to generate an export potential of about USD 1 bn per annum in first three years, increasing to USD 2 Bn per annum by fifth year and thereafter USD 3 Bn by tenth year

66

What is the Cost and Phasing?

67

GIFT would be developed in between 2007-2017 at a total cost of ~ US $ 16.33 bn

Estimated Project Cost US Billion

Core Infrastructure Semi Viable Infrastructure Utilities Buildings Total Project Value
68

1.35 1.37 8.31 5.31 16.33

How is GIFT being Organized?

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GIFTs is designed to operate through a unique modus operandi

Core Infrastructure Scope of Development

Semi-Viable Infrastructure

Utilities
Power, Solid Waste Mgmt, Sewage, Gas, HVAC systems

Real Estate
All commercial, retail, residential, recreational development

MRTS, LRTS, Expressway, Roads, Common City Amenities, City Landscaping Water with partial revenue (Central Park, Dream River generation promenade etc.)

Development Responsibility

GIFTCL

GIFTCL

Private Players

Private Developers

Ownership Structure

100% GIFTCL owned

100% GIFTCL owned

74% Private Player(s) 100% Developer(s) 26% GIFTCL

Negligible

Profit Potential

Moderate (e.g. Toll revenues, Metro tickets, Water charges)

High (User pay charges)

High (Lease, Sale, O&M Fees)

Source of Funds

GIFT Fund Units Sale

GIFT Fund Units Sale

70% Debt 30% Equity (Split between GIFT & Private Player)

Upto Developers discretion

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What are the Components of the Project cost?

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Total Project Cost of GIFT

Development of GIFT has been planned in the following four verticals with Estimated Total Project Cost of ~ Rs 637,600 Mn

Core Infrastructure

Semi Viable Infrastructure

MRTS LRTS Transportation Nodes + Stations Water Distibution (WTS) Water Supply

User Pay Utilities Power Generation Power Distribution System STP and WMS District Cooling (HVAC) System Gas System Parking Systems ICT (Data Centers)

Real Estate
Office Commercial Mixed (Residential + Commercial) Public-Semi Public Hotel Utilities

Site Development Parks/Gardens Hard Landscape Water Bodies Roads (incl. bicycle paths, etc.) Underground Arterial Roads River Tunnels Bridges Main External Roads Sewage and Drainage Stormwater Drainage Firefighting system Sercurity System Service Trench River Training

Rs 37,450 Mn

Rs 282,093 Mn

Rs 250,000 Mn

The infrastructure is to be Developed & Funded by GIFT with funding as under : Core Infrastructure Semi Viable Infrastructure User Pay Utilities : 100% Equity by GIFT : 100% Equity by GIFT : 8% Equity by GIFT 22% Equity by Strategic Investors 70% by way of Debt The Real Estate is to be completely Developed as well as Funded by the Real Estate Developer cum Investor

Rs 37,100 Mn

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What is the Value Proposition

73

And presents a unique opportunity for Development and Financial Investors alike

Ten anchor investors including overseas firms have given in principal commitment of 30 mn sq ft already

Design & configuration

Marketing & Branding

Value ($)

Current Value

Quality of legal title to the land (freehold or leasehold)

Setting up Access and utilities

Establishing SEZ benefits

Value from structural factors

Height and Density of urban development

Attractiveness

Positioning and Perception of GIFT

Total Potential Value

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What is the Team for the Project?

75

Board of Directors : GIFTCL

GIFTCL Board Mr Sudhir Mankad, IAS (retd.) Mr S R Rao, IAS Mr K Srinivas, IAS Mr Hari Sankaran Mr D K Mittal, IAS Mr Ramesh Bawa Mr Sachin Gupta Mr D C Anjaria To be nominated To be nominated Chairman, GIFTCL (Non-executive, nominated by GoG) Principal Secretary, Urban Development & Urban Housing Dept., Govt. of Gujarat Managing Director, GUDC Managing Director, IL&FS Managing Director, IL&FS Infrastructure Development Corporation Limited Managing Director, IL&FS Financial Services Limited Group General Counsel, IL&FS Independent Director 7 Independent Directors in line with CIS Scheme Govt. of Gujarat Representative

The Board has constituted following committees to oversee critical functions Project Committee to approve Project modules, Budget and Implementation Plan for smooth project implementation Personnel Committee to overview and approve personnel related matters & oversee implementation of rules & regulations Finance cum- Audit Committee

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What is the current Project status?

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Project Development Activities

Project Activities

2007-08 Jan-Mar
Completed

Apr-Jun

2008-09 Jul-Sept Oct-Dec

Jan-Mar

Apr-Jun

2009-10 Jul-Sept Oct-Dec

Jan-Mar

2010-11 Apr-Jun

PROJECT DEVELOPMENT
Preparation of Master Plan Concept Design
Buildings Infrastructure
Ongoing Ongoing Ongoing Ongoing Ongoing

April April June May April June June

C Continue

Approvals & Clearances

High Rise Clearance Environmental Studies & Clearance Master Plan including GDCR

Detailed Design
Building Architecture Infrastructure Component

Legend Activity Start Activity End Activity Duration Activity (Continue)

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Project Finance and Marketing Activities

Project Activities

2007-08 2008-09 2009-10 Jan-Mar Apr-Jun Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Jan-Mar

PROJECT FINANCING & MARKETING

Project Structuring Gift Funding Selection of Strategic Partner (PSP)
Viable Infrastructure on PPP Model Semi-Viable Infrastructure on PPP Model Feb April April
Ongoing

Sept June June Sept

Project Marketing

Legend Activity Start Activity End Activity Duration

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Project Implementation Activities

Project Activities

2007-08 Jan-Mar
Ongoing Ongoing Ongoing

2008-09 Apr-Jun Jul-Sept Oct-Dec Jan-Mar Mar July Aug

2009-10 Apr-Jun Jul-Sept Oct-Dec Jan-Mar

2010-11 Apr-Jun

PROJECT IMPLEMENTATION
Surveys & Investigations Building Approvals Water Source Development External Road Connectivity Procurements of Contractors for Core Infrastructure Site Development Infrastructure Development
Core Infrastructure PPP Model - Infrastructure Component

Mar April May June July Sept Sept Oct Mar

Continue Continue

Construction of Buildings
Legend Activity Start Activity End

Activity Duration

Activity (Continue)

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Way Forward

Thank You

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