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 Business ProposalJV for Dredging Works in India

& / orFinancial Support Partner

REGISTERED ADDRESS :

Chinar Shipping & Infrastructure (I) Pvt. Ltd.410 Bharat Chambers, 52 Baroda Street,

Carnac Bunder, P. D' Mello Road, Mumbai 400 009.Tel : +91 22 4213 8130 / 21

E-Mail : info@chinarshippinginfratech.com Website: http://chinarshippinginfratech.com

1. The Positive Factors2. Opportunity for Dredging

Industry3. Purpose & Objective4. Our Background5. Our Strengths6. Criteria for JV partner 7. Working Terms of JVCo8. Criteria for Financial Support

Partner9. Working Terms for Financial

Support Partner

Contents 

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The Positive Factors India is now the third most favoured destination for Foreign

Direct Investment (FDI), behind China and USA.

As per UNCTAD India is one among the dominant host countries for FDI in the Asia-Pacific region.

Putting an end to a large number of government regulations has opened up multiple options to innovative schemes of financing infrastructure  projects.

The political scenario and “political will” in India have changed. India, now has immense opportunities, in infrastructure industry.

The Indian government has facilitated 100 per cent FDI under the automatic route for port development projects.

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Opportunity for Dredging Industry A 10-year tax holiday has been accorded to enterprises that

are engaged in the business of developing, maintaining and operating ports, inland waterways and inland ports.

The cargo handling capacity of ports in India is targeted to touch 2,493 million tones per annum (MTPA) by the end of 2017, as compared to 1,245 MTPA at the end of 2012.

India has about 16,000 km of navigable waterways. Out of which only an estimated of 3,600 km are navigable by large vessels, although in practice only about 2,000 km are used.

A mere 44 million tones of cargo is moved annually through these waterways using mechanized vessels and country boats.

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Purpose & Objective• We, M/s Chinar Shipping &

Infrastructure (India) Pvt Ltd (CSI) wants to join hands with an International dredging company of medium scale.

• Proposal is to form a JV Company (JVCo) to capitalize on Technical & Financial strengths of both the JV partners

• The JVCo shall bid and execute upcoming river & port dredging works in India.

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Our Background• CSI was established in 2002 and is an ISO 9001 company

• Our management is distinguished by energy, practicality and a 'can do' approach.

• CSI is registered / working with :

Shipping Corporation of India (SCI)

Mumbai Port Trust, Mumbai (MPT)

Director General Shipping, Government of India (DGS)

Delhi Jal (water) Board, Govt of National Capital Territory, Delhi (DJB)

Maharashtra Maritime Board, Government of Maharashtra, India (MMB)

Inland Waterways Authority Of India, Ministry of Shipping, Government of India (IWAI)

• CSI has registered office in Mumbai and regional office in New Delhi

• CSI has field establishments at 3 strategic locations in India

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Our Strengths• 12 years of experience &

expertise

• CSI is currently executing dredging contracts for Inland Waterways Authority of India and Delhi Jal (water) Board

(1/2)

• CSI has very good reputation and connections in the government departments : Ministries, Irrigation, Waterway & Port authorities.

• CSI has completed more than 35 lac cum in river dredging and looking forward to bigger projects in the near future.

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Our Strengths

• CSI has successfully completed dredging contracts in Saudi and China also.

• Technical manpower is highly qualified and experienced

• CSI has 2 No.s IHC BEEWER 1200 & 2 No.s  ELECOT 370 dredgers on long term lease

(2/2)

• CSI is one of the leading O&M contractors for dredging and ship management.

• CSI’s crew & engineers are :

are experienced in all type of Dredging

understands the river system of India and know the intricacies of working in various rivers of India

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Criteria for JV partner (Technical & Financial)

The proposed JV with a dredging company shall be only for CSI’s dredging operations

The dredging company willing to enter into a JV with CSI, should preferably have a minimum of following credentials :

The turnover through dredging works / contracts should be between USD 40 Million to 120 Million in FY 2013-14

The turnover through dredging works / contracts in any of the last 3 FY’s should not be less than USD 20 Million

Should have executed one dredging works of USD 25 Million Or at least 3 works of USD 10 Million each

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Working Terms of JVCo JVCo shall be a registered & independent legal identity in India.

Participation ratio of JVCo to be mutually decided.

Name & Style to be mutually decided.

All local clearances or compliance’s shall be responsibility of CSI

All expenses as well as profits shall be shared in ratio of participation in JVCo.

The JVCo shall bid for contract above INR 100 Cr. only

CSI shall maintain independent identity and shall bid for dredging contracts of value less than INR 100 Cr. (= approx. 16 Million USD)

In case of dissolution of JVCo : the name and style of JVCo will be retained by CSI, without any

compensation to the JV partner the JV partner will not carryout dredging & related contract in

India for next 3 years

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Criteria for Financial Support Partner

The proposed JV with any company shall be for any contract by CSI’s

The company willing to enter into a JV with CSI, should preferably have financial strength to provide : Earnest Money Deposits & Bank Guarantee’s for bidding

purposes for projects upto INR 200 Cr (= approx. 32 Million USD) Please note that typically for tenders in India, the :

i. Earnest money (EMD) is between 1% to 2% of the contract value (approx. $ value of 0.16 Mill USD to 0.32 Mill USD)

ii. Performance Bank Guarantee’s (PBG) is about 5% of the contract value (approx. $ value of 1.6 Mill USD)

iii. Bank Guarantee’s (BG) for mobilization advance are between 5% to 10% of the contract value (approx. $ value of 1.6 Mill USD to 3.2 Mill USD)

Working capital of about 10% (in cash) of the contract value, immediately after the allotment of the work (approx. $ value 3.2 Mill USD)

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Working Terms for Financial Support Partner After the company (Financial Support Partner) demonstrates it

financial strengths, it will be required to enter into a MoU of financial support to CSI. However, if mutually agreed, a separate registered & independent legal identity in India can be formed.

The financial support shall be in two form. One is for deposits to government bodies. The EMD is fully refundable in case the tender is not allotted to us & the BG’s are fully refundable after project completion & applicable tender terms. The working capital (if availed) shall be used for the project only.

Participation ratio of the facilitator and/or the financing company shall be be mutually decided.

All local clearances, compliance’s and execution shall be responsibility of CSI

CSI shall bid for any viable contract

In case a separate identity is created, after the dissolution of the same, the name and style will be retained by CSI, without any compensation to the financial company or the facilitator.

In case of separation, the financial company or the facilitator will not carryout dredging & related contract in India for next 3 years.

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Thank you

ContactVineet Aggarwal

New Delhi,  India (GMT + 0530 hrs)+91 9818 770 703

Skype : vineet.aggarwal001