Construction of Sardar

Mandir at Surat

Urban development
Government of Gujarat
Contents

Project Concept
Market Potential
Growth Drivers
Gujarat Competitive Advantage
Project Information
- Location/ Size
- Infrastructure Availability/ Connectivity
- Key Considerations
Project Financials
Approvals & Incentives
Key Department Contacts

Page 2 10 October 2016

Project Concept

Conceptualization of Sardar Mandir

Sardar Mandir, a convention centre is second of its kind in Gujarat. The Mandir is being
constructed on the lines of Mahatma Mandir, a world class convention and exhibition centre at
Gandhinagar, Gujarat.
It is expected that by 2021, Surat, the business capital will be a twin city Surat-Navsari with a
population of 11.5 million. Therefore, at this time, the project is inevitable for the mega twin cities
as well as for the South Gujarat region.
The convention centre is expected to provide National & International meet facility, provide facility
for traders of south Gujarat to organise trade fares in turn boosting the commerce industry, help
build a new recreation centre, lead to development of tourism and hotel industries, and also create
huge business opportunities.

Global Business Travel Market

Business Travel MICE

In 2014, globally, business MICE accounts for 54% market

travel had a market share of share of the global business
travel
MICE segment is majorly
dominated by
Conferences/Seminars/Meetings
US$1.18 billion (41%), followed by Trade Fairs/
Exhibitions (29%)

Business travel in India

India's Travel and Tourism sector contribution to GDP stood at INR2,668.3 billion i.e. 2% of GDP in
2015. The contribution is expected to rise by 7.1% in 2016

GDP Contribution
While the leisure tourism in India generates 83.2% of Indias GDP,
2015 business tourism generates 16.8%
In 2015 Business Travel contributed INR1,198.9 billion, expected to
INR grow to INR1,302.9 billion at a rate of 8.7%
2668b With this lies a huge potential in the business travel market of India
The GOI is looking at developing MICE tourism along with National
MICE Promotion Bureau which will work in tandem with state
governments and help in maximizing the MICE activity throughout.

Source: HVS Trend Report 2015

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Market Potential

Gujarat stands at an excellent business opportunity for domestic

and international tourists

Domestic tourist arrival in Gujarat International tourist arrival in Gujarat

(in million) (in million)
37.6
32.1 0.7
28.2 0.6
24.9 0.5 0.6
19.4 21.9 0.5
0.4

FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16
Source: TFIS annual report FY16

Business Tourism Landscape

Of the total business tourism to Gujarat, more than 50% of the

business tourism is captured by cities like Ahmedabad, Surat,
Vadodara and Rajkot
16.3
The four business centers saw an increase in business tourism at
the rate of 19.05% CAGR over the period FY13-FY15.
million
Of these cities, Surat ranks second with a total tourist flow of 1.98
million of which business tourist accounted for approximately
89.74% flow.
2015

Business Tourist Market in Surat

Surat, the second largest city of Gujarat, is also known as the business capital of Gujarat
One of the top ten contributors towards GDP of India, the city is famous for its diamond and
textile business and has also received multiple national and international recognitions.
In 2014, Microsoft recognized Surat, as the first Smart IT city in India.

In FY15, Gujarat saw more than 1.9

million tourists visiting Surat of which
89.74% visited the city for Business
Purposes
1.8
Over the period of six years, from FY09
1.2 number of approximately 0.6 million to an
0.6 FY15 number of 1.8 million, Business
tourism of Surat grew at a CAGR of 13%
FY09 FY12 FY15
Source: TFIS Annual Report (numbers are in millions)

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Market Growth Drivers

Gujarat government has established iNDEXTb(Industrial

Extension Bureau), single window clearance nodal agency to
1 simplify the administrative procedures and accelerate industrial
One window
clearance development.
The industry provides information to prospective investors on
opportunities available in the State of Gujarat for industry,
commerce and trade.

Following initiatives taken by Government of India and Government

of Gujarat will help MICE tourism grow-
Marketing of India as a tourist destination under Incredible India
2 Scheme
Government Under Market Development Assistance (MDA) scheme, financial
Initiatives
support will be extended to the active members of India
Convention Promotion Bureau (ICPB), on winning the bid
Gujarat government promotes development of MICE in urban
centres
State government will be actively promoted and followed under
the PPP mode

3 Surat is the fourth fastest developing cities of the world.

Amendment in
4 Surat-Navsari Twin Development of nearby areas like Navsari along with Surat will
sports promotion
City foster the economic development of Surat and bring more
under CSR Rules
business to the city.

4 Home to textiles and diamond industry, Surat is also an

5 Hub for Chemicals emerging center for chemicals and petrochemicals industry. In
and Pool order to facilitate the same, a large petrochemical complex is
Talent
Petrochemicals being promoted, which is expected to fasten the industrial and
economic growth of the city.

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Gujarat
Competitive Advantage
Surat ranks fourth in a global study of fastest-developing cities in the world in
terms of economic prosperity.
Smart City Mission
Surat has the potential to become a smart
metro city. Upcoming mega infrastructure
projects like Bullet Train, Mumbai-
Ahmedabad expressway, dedicated freight
corridor will boost the trade and economy
of the region.
Effective Governance
system
The city has an efficient and effective
governance system with most of the civic
services being available online and
citizens can do most of the transactions
online on Surat Municipal Corporation
(SMC)s website and Mobile application.
High GDP growth rate
Surat has registered high GDP growth rate
of 12 to 13% from 2013-15.
It contributes to 42% of worlds total rough
diamond cutting and polishing; accounting
for US$10 billion, which forms
approximately 65% of the total diamond
exports from India.
Page 6 10 October 2016
Young demographic
dividend
More than 70% of Surats population is
under 35 years of age. This indicates
availability of potentially large working
population.
The young population naturally tends to
have an inclination towards sports.
Advanced systems and
capabilities
Advance systems like CCTV surveillance,
Mobile APP, Tertiary Treatment Plan for
recycling waste Water, Underground
Cabling , Energy from Renewable
sources, Wi-Fi hotspots etc. are already
present in Surat.
This makes it an ideal investment
destination
High Quality
Infrastructure
Surat has adequate water supply network
covering 95 % of the city with some parts
having 24*7 water supply.
95% of the city is covered by underground
sewerage system. Surat has waste to
energy plants installed for converting
sewage waste to energy.
Project Information

Background
Surat Municipal Corporation (SMC) is wanting to develop a Convention and Exhibition center, Sardar
Mandir for national and international conventions, exhibitions, trade fairs , seminars, conferences
etc.
The project is expected to create huge
business opportunities, especially for
South Gujarat traders, leading to a boost
in the commerce industry
SMC has identified four adjoining plots in
the South West zone of Surat City, with a
total land area of 34836 square meter in
Magdalla, Surat
Town Planning Scheme Area
No (in sq. meter.)

Vesu Magdalla TPS No 7 9345

Vesu Magdalla TPS No 7 4626

Vesu TPS No 6 5914

Vesu Magdalla TPS No 7 14951

As per the mandatory requirements of Ministry of Tourism, a convention center should have at
least one convention hall, two mini convention halls, one exhibition hall, one restaurant and
parking facilities.
Besides, in order to further facilitate the customers, the convention center is likely to have
infrastructural facilities like VIP lounge, travel desk, bank and money changing facilities, locker
facilities and also, a handicraft shop to enhance the value of the center.
In order to develop this project, SMC is willing to use its own fund and has estimated the cost to
be INR850 million
Although, the project is being entirely funded by SMC, it can also receive funding assistance
from smart city mission as Surat has been declared as one of the Smart Cities.

Man power requirement

S No. Position Requirement
1 Supervisor 04
2 Technicians 12
3 Lift in charge 02
4 Electricians 05
5 Security System 08
6 Housekeeping 20
Total 51
Note: The man power requirement has been calculated with reference to the same required at Mahatma Mandir,
Gandhinagar

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Project Information
Infrastructure availability/ connectivity
Rail
Surat is connected with other districts of the
state such as Rajkot, Vadodara and
Ahmedabad by rail.
The proposed site in South West Zone of
Surat is ~15 kms away from the Surat railway
station.
Proposed
The Mumbai-Ahmedabad bullet train project
will have Surat as one of the stations.
In 2016, the Gujarat government assigned
Delhi Metro Rail Corporation as a consultant
for the proposed metro connectivity in Surat.
Air
Surat domestic airport is well connected to
various parts of the country. The city is
located ~275 kms from the international
airport at Ahmedabad.
Proposed
In January 2015, Airports Authority of India
gave an in-principle approval for cargo
terminal at Surat airport worth INR70 million.
The terminal is expected to be operational in
2017.
In February 2016, Surat Airport Action
Committee filed an online petition for an
international airport at Surat.
Utilities
Water
Water for industrial purposes can be obtained
from four sources viz. Gujarat Water Supply
and Sewerage Board (GWSSB), an irrigation
canal, dams, and surface reservoirs.
Page 8 10 October 2016
Road
The city is connected to Delhi Mumbai
Industrial Corridor (DMIC) which links
Ahmedabad, Vadodara and Surat.
Proximity to NH-8 and NH-6 further enhances
connectivity in the city.
Surat also has very good connectivity with
other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km).
Proposed
Proposed four-lane highways which are
expected to improve connectivity in Surat
include Dakor-Savli, Vadodara-Dabhoi &
Surat-Olpad-Bardoli.
Port
The nearest port is Hazira which is 25 km
from Surat.
Additionally, Hazira port is well connected to
Mundra port and Jawaharlal Nehru Port Trust
(JNPT) Indias largest container port
Thus, it provides a convenient textiles-related
trade gateway to International (Europe,
Africa, America and the Middle East) and
domestic markets.
Power
The main source for the power supply is
Torrent Power Limited in Surat
Project Financials

Surat Municipal Corporation, the intended developer of the facility has estimated the cost of project to
be around INR850 million.

Operating and Maintenance Cost

Project components & specifications Cost
Marketing & Brokerage @1% of the total revenue
Operating Expenses for Convention Centre 20% of the revenue from Convention Centre

Operating Expenses for Hotel 40% of the revenue from Hotel

Pre Operating Costs

Components & Specifications Cost
Project Development Cost @1% of Construction cost
Debt Syndication @0.5% of Debt

Equity Syndication @0.5% of Equity

Launch marketing
Other pre-operational expenses
Insurance during Construction
Interest during construction
Consultancy
@1% of Construction cost
@1% of Construction cost
@0.5% of the landed cost for each of the
Construction years
@14% of per Annum
@5.5% of the Landed Cost

Cost of building a convention center

Project components & specifications Cost (INR per sq. ft.)
Site Development 200

Civil Work (Convention Centre and Hotel) 1,200

Civil Work (Basement Parking) 900
Cost of Furnishing (Convention Centre) 1,800
Cost of Furnishing (Hotel) 2,000
Cost of Machinery and Equipment INR10 million

Note: The numbers have been taken in reference to a Convention Centre, Karnataka

Page 9 10 October 2016

Project Information
Key Considerations

Policy support The Gujarat government is keen on developing Surat into a

business tourism city. Also, the industry status given to tourism
sector will help industry get benefits such as loan interest
subsidies, concession in taxes, as well as in electricity duty.

Good
Governance Surat being part of Gujarat, enjoys the status of one of the least
corrupt region of India. This fastens up the clearance of projects
which ultimately benefits the industry.

Railway Facelift Railway ministry along with Gujarat government is looking at

redeveloping the Surat Railway Station. This will not only give a
facelift to the existing station but also improve the connectivity
making it viable for business opportunities.

Improving Air With the increasing number of air travel to Surat, especially for
travel the business purpose, has prompted the Ministry of Civil Aviation
to improve air connectivity to Surat. Moreover, looking at the air
travel demand for Surat, Air India has decided to run daily
services to the city

Surat, the diamond city of India, processes almost 95% of the

Surat Diamond worlds diamonds. Totaling to a size of INR0.9 million and
Bourse employing over 2 million people, it serves as the hub of Indian
diamond manufacturing. In order make Surat a world class
diamond market, a diamond bourse is being set up in the city.
This will not only provide trading facility but also bring all the
people concerned with the business under one roof

Page 10 10 October 2016

Approvals & Incentives

Approvals Required
Government Approval
The Gujarat Town Planning and Urban Development Act, 1979
The Gujarat Municipalities Act. 1963
Gujarat Provincial Municipal Corporation Act, 1949
Environment clearance
No Objection Certificate from the Gujarat Pollution Control Board
Environmental Clearance (EC) from Ministry of Environment and Forest (MOEF)
Arrangement of power
Captive power - Gujarat Energy Transmission Corporation Limited (GETCO)

Government Incentives
Key financial incentives

Interest subsidy to the eligible tourism units

@5% of the loan amount with maximum amount of INR2.5 million per annum for a period of
five years in Municipal Corporation areas for eligible tourism units
@7% of the loan amount with maximum amount of INR3.0 million per annum for a period of
five years in the areas other than mentioned above.

Page 11 10 October 2016

 Surat Municipal Corporation
https://www.suratmunicipal.gov.in/

SE TransStadia Pvt. Ltd

http://www.transstadia.com/

Industries and Mines Department, Gujarat

www.imd-gujarat.gov.in/

iNDEXTb - Industrial Extension Bureau

www.indextb.com

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

Block No.6, 5th Floor,

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