Development of

Aero Sports at Amreli

Tourism
Government of Gujarat
Contents

Project Concept 3
Market Potential 5
Growth Drivers 7
Gujarat – Competitive Advantage 8
Project Information 10
- Location/ Size
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Players/ Machinery Suppliers
- Potential Collaboration Opportunities
- Key Considerations
Project Financials 21
Approvals & Incentives 23
Key Department Contacts 25

Page 2
Project Concept

Aero sports activities – overview

Aero sports are adventure sports or sporting activities carried out in the air. Aero sports are becoming
increasingly popular in India, as the appetite for adventure sports grows. Aero sports hold a special
appeal as they allow people to experience thrill in air. Some popular aero sports activities are
discussed below:

1 Powered paragliding or paramotoring

Powered paragliding, also known as paramotoring, is a form of paragliding where the

pilot wears a motor on his or her back (a paramotor) which provides enough thrust to
take off using an adapted paraglider or paramotor wing. It can be launched in still air, and
on level ground, by the pilot alone — without assistance.

2 Motor gliding

Motor gliding is the recreational activity of flying a motor glider – a fixed-wing aircraft that
can be flown with or without engine power. Engine power is usually used for take off and
the glider may then soar using natural currents of rising air.

3 Parasailing

Parasailing is a recreational kiting activity where a person is towed behind a vehicle while
attached to a specially designed canopy wing known as a parasail wing.

4 Sky diving

Skydiving is the sport of jumping from an airplane at a moderate altitude (of around 6000
feet) and free-falling and using one's body to control direction or movements before
opening one's parachute.

5 Hot air ballooning

Hot air ballooning is the activity of flying hot air balloons, with passengers being
suspended in a basket attached to the balloon. As the balloon moves with the direction
of the winds, the passengers feel no wind, except for brief periods when the balloon
climbs or descends into air currents of different direction or speed.

6 Aero modelling

Aero modelling is the activity of designing, constructing and flying model airplanes,
helicopters and rockets. Model aircraft are flying or non-flying small sized replicas of
existing or imaginary aircraft using a variety of materials including paper, plastic, metal,
synthetic resins, wood, foam and fiberglass.

7 Paragliding

Paragliding is the sport of flying paragliders: lightweight, free-flying, foot-launched gliders,

under which the pilot sits in a harness suspended below a fabric wing.

Page 3
Project Concept

Monetization of unused airports

India has over 30 unused airports, and the government is looking at different options to monetize
them. Amreli is one such airport and developing it as an aero sports hub provides a key opportunity
for monetization, along with putting it on the map as a key aero sports training center.

Need for aero sports training

 Specialized training is required for aero sports as compared to some other adventure sports such
as trekking. Aero sports need a few days’ to months’ training, wherein trainees are taught the
essentials of rigging up and dismantling the flyer, aerodynamics, air safety, as well as wind and
land conditions. Theoretical training is followed by dry runs, then by short hops which do not rise
high in the air and cover very short distances, and then by final full-fledged runs.
 There is an increasing need for aero sports training to build a strong, professionally certified
instructor base for aero sports across the country.
 In this regard, the Government of Gujarat is also looking for investments to develop a state-of-the-
art aero sports training center at Amreli.

Page 4
Market Potential

Potential market size

Aero sports primarily caters to the needs of adventure tourists, as well as other adventure
enthusiasts. The adventure sports market in India is still quite small compared to the global size,
indicating a strong potential for growth.
The demand for adventure sports by Indian tourists increased 400% between 2008-2013, indicating
a strong domestic market for adventure sports, including aero sports.

Adventure sports market The global adventure sports market is

(in INR crore) estimated at nearly INR5,34,000 crore
(US$89 billion), while the Indian market is
Global 5,34,000 estimated to be around INR500 crore
(US$83 million).
India 500
There is a significant potential to drive
Source: “Adventure tourism business booms in India,” The Economic Times,
http://articles.economictimes.indiatimes.com/2014-03-23/news/48491521_1_adventure- growth in this market in India.
sports-adventure-tour-operators-adventure-travel-trade-association, accessed 16 June 2016

Target market potential

There are primarily three key target market segments for aero sports –

Tourists at Amreli (in thousands)

CAGR: 207
13.4%
142
97
67
Tourists at
Amreli
FY13 FY16 FY19E FY22E
Source: Tourist Flow Information System- Annual Report 2015-16

 Amreli’s tourist footfall is expected to grow from 97,000 in FY16 to

2,07,000 in FY22. The region primarily sees domestic business tourists.
 Amreli it is also home to the Ambardi Interpretation Zone of the Gir
National Park, which drives tourism in the region.

 There are 29 flying clubs in India, of which two are based in Gujarat – the
Ahmedabad Aviation & Aeronautics and the Gujarat Flying Club.
Flying club
 The aero sports hub would cater to the elite flying club members, who may
members
also be business travelers to Gujarat. In addition, the facility could host
various national/ state level competitions for the flying clubs.

Youth  Gujarat has a youth population (15-24 years) of around 1.2 crore, of which
population 54% are male and 46% female. This youth population provides a
significantly large target market for aero sports in Gujarat.

Page 5
Market Potential

Key aero sports sites in India

Sanasar, J&K
Bir Billing, Himachal Pradesh
Bekhli, Himachal Pradesh
Auli, Uttarakhand
Rishikesh, Uttarakhand
Naukuchiyatal and Bhimtal, Uttarakhand
Narnaul, Haryana
Gangtok, Sikkim
Arna and Bavrali, Pushkar,
Rajasthan Rajasthan Darjeeling, West Bengal
Mount Abu, Rajasthan

Pavagaadh, Gujarat

Saputara, Gujarat

Amby Valley, Maharashtra

Kamshet, Maharashtra
Panchgani,
Maharashtra
Arambol, Goa
Nandi Hills and Bangalore,
Shola Heights West, Karnataka
Karnataka
Yelagiri, Tamil Nadu
Vagamon, Kerala
Note: This list is only
indicative, and not exhaustive

Key aero sports training facilities in India

Indian Institute of Skiing and

Mountaineering, Gulmarg, J&K Atal Bihari Vajpayee Institute of Mountaineering
and Allied Sports, Manali, Himachal Pradesh
Billing Paragliding Association, Bir Billing, Himachal Pradesh

Adventure Sports Academy, Panchkula, Haryana

Rajiv Gandhi National Aero Sports Aero Club of India, New Delhi
Centre of Excellence, Narnaul, Haryana (and its associated members);
National Adventure Foundation, New Delhi

Gujarat Paragliding and Adventure

Club, Ahmedabad, Gujarat

University of Pune (Certificate

course in adventure sports),
Pune, Maharashtra

Bangalore Aerosports, Bengaluru,

Karnataka

Barola Aero Sports,

Global Aerosports, Chennai, Tamil Nadu
Thrissur, Kerala
Note: This list is only indicative, and not exhaustive
Source: EY Analysis

Page 6
Growth Drivers

1  Growing popularity of adventure sports

 India’s adventure tourism industry nearly doubled in size between 2009-2014, driven by a key
shift in interest towards adventure sports, primarily from domestic tourists who are looking
beyond usual holidays for new experiences.
 Out of nearly 20 lakh adventure tourists, international tourists contribute up to 10% or 2 lakh,
while the rest 18 lakh are domestic tourists. According to an analysis by industry chamber,
PHDCII, adventure tourism is growing at 20% YoY, and is expected to emerge as one of the
biggest foreign exchange earners — surpassing US$27 billion market size by 2018, provided
that key policy initiatives are undertaken by state governments.

2  Increasing monetization opportunities

 Opportunities to monetize aero sports activities are now better than ever. With internet users in
India set to grow to 500 million by the end of 2016, the online space is becoming a key source
to promote and monetize aero sports.
 Promotions and monetization methods may include offering aero sports as weekend getaway
packages, partnering with online travel and coupon portals to offer deals on aero sport
activities, striking corporate tie-ups, as well as partnering with foreign tourism boards.

3  Hosting aero sports events and competitions

 Amreli has emerged as a place to promote aero sports and has recently hosted key national
aero sports events, including:
 the four-day first Indian National Parachuting Championship in April 2016, organized by
the Aero Club of India (ACI).
 the three-day first Indian National Aero-modelling Competition in February 2016,
organized by the ACI, and facilitated by the Aero-modelers Association of India (AMAI).
 Amreli airstrip is away from heavy air traffic and is an uncontrolled airfield, making it
convenient to organize such events without disturbing air traffic.

4  Rise in aero sports training institutes

 India is seeing a rise in aero sports training institutes across states. Most recently, two new
aero sports institutes are being established – one each in Haryana and Himachal Pradesh
 In December 2015, Haryana Govt. announced the establishment of Adventure Sports
Academy that would be set up on 5 acres of land at Morni in Panchkula district, and will
offer adventure sports training, including aero sports, ground sports, and water sports.
 In October 2015, the Himachal Pradesh Govt. announced that its Angra district will soon
have an aero sports and paragliding institute at Bir-Billing. Bir-Billing had hosted the
Paragliding World Cup in October 2015 as well.

Page 7
Gujarat - Competitive
Advantage
Established infrastructure
 Gujarat has a strong, well established airport and air field infrastructure with 19 airstrips in all
– this figure includes some unused airstrips – including one at Amreli.
 Specific to Amreli, the facility already has an operational air strip, and comes under the State
Government of Gujarat’s jurisdiction.

Airports in Gujarat – Amreli airport highlighted in yellow

Source: https://gujsail.gujarat.gov.in/infrastructure.htm

Government support and investment

 Under the 2016-17 Gujarat budget, a provision of INR11.25 crore has been allocated to frame
a policy to make interstate and domestic aviation attractive.
 The Government of Gujarat has created a provision of INR10 crore for establishment of the
aero sport hub at Amreli to set up training center on subjects related to aero sports and new
education courses related to the aviation sector.

Page 8
Gujarat - Competitive
Advantage
Existing aero sports facilities in Gujarat
 Gujarat has existing aero sports facilities at Saputara, Pavagadh, and Junagadh. This provides
an existing base in the state for aero sports enthusiasts, instructors, equipment, and suppliers.
 Saputara and Pavagadh are hill-stations in Gujarat that offer paragliding and powered
paragliding respectively. Junagadh is located at the foothills of Girnar Hill, and also offers aero
sports activities.
 Saputara and Pavagadh are located in Eastern Gujarat, while Junagadh and Amreli are in
Western Gujarat. Amreli will be a unique aero sports facility in Gujarat with an air strip that will
allow it to aero sports such as sky diving.

Strong focus on driving tourism

 The Gujarat government granted industry status to tourism and unveiled a new tourism policy
in 2015, providing incentives to boost the sector.
 The total flow of tourist is expected to grow from 383 lakh (376 lakh domestic and 7 lakh
international) in FY16 to 1,255 lakh (1,233 domestic and 22 international) in FY25.
 Investment in Gujarat’s tourism sector is expected to grow five-fold from INR5,400 crore
(US$0.8 billion) to INR26,900 crore (US$4 billion) during 2014–2025.
 Gujarat tourism sector is expected to contribute to 5% of the nation’s GDP by 2025, up from
2.7% in 2014. In addition, Gujarat’s tourism sector is likely to generate 3 million jobs by 2025.

Domestic Tourists (in lakhs) International Tourists (in lakhs)

1,233
CAGR: 22
14.1% CAGR:
637 13.2% 12
376 7
194 4

FY11 FY16 FY20E FY25E FY11 FY16 FY20E FY25E

Source: Tourist Flow Information System- Annual Report 2015-16

Total Investment in tourism Total contribution of Gujarat Employment from

(US$ billion) tourism to India’s GDP tourism (in million)

CAGR: 5.0%
4.00 CAGR: 3.00
CAGR: 5.76%
11.0% 15.63%
2.7%
0.95
0.81

2014 2025P 2014 2025P 2014 2025P

Source: Tourism Policy for state of Gujarat(2015-20)

Page 9
Project Information

Project location and size

Amreli – Amreli is 100 kms southeast of Rajkot, Gujarat. The
Location
altitude of the drop zone is approx. 128 m (420 ft) above sea level.
Location coordinates 21°37'17"N 71°13'34"E
Airfield area 5,70,300 sq. m (140.92 acres)
Airstrip length 1.26 km
Nearby cities Rajkot, Bhavnagar, Jamnagar, Surat

Project site – Amreli airport

Source: Google Earth Image

Location details – Amreli, Western Gujarat

Total area of Amreli
7397 sq. km
district

Population of 1.5 million

Amreli district

Administrative HQ Amreli city

Administrative Sub-districts – 11, Towns –

units 10, Villages – 616

Page 10
Project Information

Project components – aero sports activities

Amreli is best suited for aero sports that can be done on flat
Suggested aero ground. These include –
 Parasailing
sports to be  Powered paragliding
 Hot-air ballooning
conducted at  Motored gliding
 Aero-modelling
Amreli  Sky-diving

 Hangar  Engineer’s room

 Administrative office  Fuel storage room
Physical
 Washrooms and changing rooms Equipment storage room
infrastructure 
 Cafeteria
 Parking

Project components – aero sports training center

Training courses for the following aero sports –

Suggested aero  Powered paragliding  Parasailing
sports trainings at  Motored gliding  Hot-air ballooning
Amreli  Sky-diving  Aero-modelling

The following training center facilities within an approx. area of

1500 sq. m (may include residential facilities as mentioned) –
 Hostel – 10 rooms with attached toilets to accommodate 20
students on twin-sharing basis; individual studio rooms with
Physical attached toilets for 5 trainers and 5 residential staff.
infrastructure  Classrooms (3 nos.)  Dining room and Kitchen
 Simulation lab  Entertainment room
 Administrative office  Storage room
 Staff room  VIP rooms (5 nos.)

Common project components

 First aid  Vehicles  Water storage tanks
 Navigational aids  Electric equipment  Sewage disposal and drainage systems

Page 11
Project Information

Key Equipments required

 Two sets of the following equipment is recommended – one each for conducting aero
sports and for the aero sports training center (excluding sky diving plane – that can be
shared for both, conducting aero sports and for training purposes)
 Power Hang Glider – ‘QUASAR’ type double seater 350 CC (2 sets of 3 nos. each)

 Sinus 912 motored glider (2 sets of 1 no. each)

 Sky diving plane – Cessna 182 Skylane (1 no.)

 Paraglider kit (2 sets of 2 nos. each)

 Hot air balloons (2 sets of 3 nos. each)

 Parachute – Free-flight; Parachute power hang glider (2 sets of 4 nos. each)

 Manual aero models (2 sets of 10 nos. each)

 Automatic aero models (2 sets of 5 nos. each)

 Harness – bar type; pod type (multiple)

 Helmet – free-flight and powered hang gliding (multiple)

 Tool kits (one each for each aero sport)

 Instruments required for operating the equipment properly – a ~m altimeter, vario metre
indicating sinks and lifts by way of different beeps, speedo meter, lighter and walkie-talkie sets

Indicative aero sports training courses

Aero sport course Course details
Basic course: 6-days basic training on rigging the glider, pre flight inspection, ground
Hang Glider handling, assisted launching and landing.
Training Course Intermediate courses: 1) Ridge soaring – gliding with the help of blowing wind, and
2) Thermal soaring – gliding with the help of warm rising air.
Basic course: 5-day basic training on ground handling, launching and landing skills
from a gradually sloped small hill on school equipment, as well as a theory component.

Paraglider Intermediate courses: 1) Ridge soaring –ridge lift including, scratching in light lift,
Training Course getting comfortable in crowded air, and face landing; 2) Basic Thermaling – reading
conditions, efficient turning, feeling the air, which way to turn, how to take it to base;
and 3) Intermediate Thermaling –full towing course on getting comfortable and
proficient on the end of the rope.

Basic course: 5-day basic paramotor course for pilots who have done basic course of
paragliding. Training includes ground handling practice, paramotor usage instruction
and basic theory lectures.
Paramotor
Training Course Intermediate courses: 6-day intermediate course for pilots who have completed the
beginner course. The course includes advanced training such as low level flying,
precision landings, limited fuel tasks and cross country tasks, advanced navigation,
and effects of the motor on the wing.

Page 12
Project Information

Infrastructure availability/ connectivity

 Domestic airports:
 Rajkot is the nearest airport to Amreli (117 km)
 Other key airports near Amreli are Bhavnagar
Airport (119 km) and Diu Airport (f134 km)
 International airport: Ahmedabad is the closest
international airport (275 km).
 Amreli has its own railway station that
connects it to major cities in Gujarat.
 Neighbouring stations include Chital and
Khijadiya.
 Nearby major railway station is Rajkot.

 Amreli is easily approachable by National  Nearest ports to Amreli are – Pipavav (88
Km), Jafarabad (96 Km), Veraval (161 Km),
Highway 8A and 351.
Bhvnagar (119 Km) and Porbandar (200 Km).
 Amreli is only 245 Km away from Ahmedabad,
and 111 Km from Rajkot by road.

Utilities

Electricity  Paschim Gujarat Vij Company Ltd. is responsible for power supply in Amreli,
where it has 56 power sub-stations of the following capacities: 1 – 400 KV, 2
– 220KV, 1 – 132KV and 52 – 66KV).
 Amreli has an installed capacity of 942 MVA and 95 interface points.

 Gujarat has a state-wide “water supply grid” spread across 1,20,769 km that
Water aims to serve 75% of its population.
 Gujarat Industrial Development Corporation is responsible for ensuring
consistent water supply in industrial areas.
 The Amreli industrial estate is supplied 0.5 million litres water per day.

Page 13
Project Information

Resources/ Manpower – Aero sports facility

 Land: ~1,000 sq. m (within the Amreli airport facility)

Estimated  Water: ~2.5 Kilo litres per day
resources  Electricity: ~10 KWh per day

 Manager – 1 no.
 Instructors – 10 nos. – 2 per aero sport (one instructor
Manpower may specialize in multiple aro sports as well)
 Other staff – 10 nos. – cafeteria cook, cleaner, other
helpers

Resources/ Manpower – Aero sports training center

 Land: ~1,500 sq. m (within the Amreli airport facility)

Estimated  Water: ~4.5 Kilo litres per day
resources  Electricity: ~30 KWh per day

 Manager – 1 no.
 Trainers – 5 nos. – one per each aero sport (one trainer
may specialize in multiple aro sports as well)
Manpower
 Other staff – 10 nos. (5 residential and 5 non-residential)
– cook, cleaner, other helpers
 Students: 20 at one time

Page 14
Project Information

Key players - Aero sports operators in India

1. Billing Paragliding Association (BPA), Bir Billing, Himachal Pradesh

2. Sky Bird Adventures, Nainital, Uttarakhand

3. Rajas Aerosports and Adventures Private Limited (airsafari.in), Rishikesh, Uttarakhand

4. Adventure Nation, Gurgaon, Haryana

5. Royal Sketch Aviation Pvt. Ltd., Mewar, Rajasthan

6. Barola Aero Sports, Chennai, Tamil Nadu

7. Bangalore Aerosports, Bengaluru, Karnataka

Key institutes providing aero sports training/ courses in India

1. Aero Club of India, New Delhi and its associated members across India

2. Gujarat Paragliding and Adventure Club, Ahmedabad, Gujarat

3. Rajiv Gandhi National Aero Sports Centre of Excellence, Narnaul, Haryana

4. Adventure Sports Academy, Panchkula, Haryana

5. Atal Bihari Vajpayee Institute of Mountaineering and Allied Sports, Manali, Himachal Pradesh

6. Billing Paragliding Associations, Bir Billing, Himachal Pradesh

7. Barola Aero Sports, Chennai, Tamil Nadu

8. Bangalore Aerosports, Bengaluru, Karnataka

9. Indian Institute of Skiing and Mountaineering, Gulmarg, J&K

10. University of Pune (Certificate course in adventure sports), Pune, Maharashtra

11. Global Aerosports, Thrissur, Kerala

12. National Adventure Foundation, New Delhi

Note: These are indicative lists, and not exhaustive Source: EY Analysis

Page 15
Project Information

Key machinery suppliers

Indian UAV
Location: Ahmedabad, Gujarat
Products/ services: provides model gliders and airplanes; also provides flight training
Link: http://www.indiamart.com/indianuav/

Albatross Flying Systems

Location: Bangalore, Karnataka
Products/ services: Paramotors, Flightstar microlight Aircraft, Cruiser powered hang gliders
Quicksilver aircraft
Link: http://www.indiamart.com/company/3453572/

Pipistrel
Location: Slovenia
Products/ services: light aircrafts, propellers
Link: http://www.pipistrel.si/

Aero sports
Location: Thrissur, Kerala
Services: Aero modelling kits
Link: http://aerosports.co.in/

Chamunda Safety Equipment

Location: Ahmedabad, Gujarat
Products/ services: aviation parachute, aviation life jacket, aviation safety belt
Link: http://www.indiamart.com/chamundasafetyequipments/aviation-safety-equipment.html

Aero System India

Location: New Delhi
Services: Cessna aircraft supplier
Link: http://www.aerosystemindia.com/

Page 16
Project Information

Potential collaboration opportunities

Adventure clubs and operators in Gujarat

 There is a strong potential to collaborate with adventure clubs and operators in Gujarat to
conduct aero sports activities at Amreli, and also provide trainers/ instructors.
 Some of these tour clubs/ operators are:
 Gujarat Flying Club
 Gujarat Paragliding and Adventure Club
 Sky Ventures
 Dang Jilla Paragliding Adventure Association (also manages paragliding activities at
Saputara, Gujarat)

Sports Institutes in Gujarat

 The aero sports training center can potentially collaborate with the Swarnim Gujarat Sports
University to train their students in aero sports.
 There can be similar collaborations with CP Degree College of Physical Education, Bharuch;
Degree College of Physical Education, Kheda and other sports-focused institutes.

Members of Aero Club of India

 The Amreli aero sports facility and training center may also collaborate with members of the
Aero Club of India to provide them aero sports facilities in Gujarat and also host aero sports
competitions for them.
 Members of Aero Club of India include:
 Andhra Pradesh Aviation  Ludhiana Aviation Club
 Amritsar Aviation Club  Northern India Flying Club
 Bihar Flying Institute  Rajasthan Flying Training School
 Haryana Institute of Civil Aviation  UP Flying Training Institute
 Nagpur Flying Club  Bombay Flying Club
 Orissa Govt Aviation  Delhi Flying Club
 Patiala Aviation Club  Gujarat Flying Club
 Rajiv Gandhi Academy for Aviation  Madhya Pradesh Flying Club
 Assam Flying Club  Banasthali Vidyapith Flying Club
 Kolkata Flying Training Institute  Madras Flying Club
 Govt Flying Training School  Jamshedpur Co-Op Flying Club

Page 17
Project Information

Key considerations - Basic minimum requirement for aero sports

 Aero sports need the highest skill requirements. They also have the highest risk element and
anything that goes wrong hardly gives an opportunity for corrective action. Accordingly
adherence to safety guidelines must be followed meticulously.
 Generally the following principles need to be adopted:-
 The equipment used in each aero-sport must be defined in terms of its specifications,
certifying agency and its life (shelf life and usage life), as defined by the manufacturer,
who for the purpose must hold a valid authorization for manufacturing the particular
aero sport equipment.
 Instructor/operator qualification is very important. It is not enough to have an initial
certificate or qualification. Currency and continued evaluation in terms of safety and skill
needs to be carried out.

Example of aero sports guidelines – Sky Diving

Instructor qualifications and training of participants:
All student training programs must be conducted under a qualified instructor with license from
Indian Parachuting Federation or any other National Parachuting Federation like British Parachute
Association (BPA), Army Parachute Association (APA), United States Parachute Association
(USPA)
 First-jump course: All students must receive training in the following areas, sufficient to jump
safely – equipment, aircraft and exit procedures, freefall procedures, deployment procedures
and parachute emergencies, canopy flight procedures and landing procedures/ emergencies.
 Static-line: Before being cleared for freefall, all students must perform five successive jumps
with practice deployments while demonstrating the ability to maintain stability and control from
exit to opening; each student must be supervised in the aircraft and in freefall by a licenced
Instructor until demonstrating stability and heading control prior to and within five seconds after
initiating two intentional disorienting maneuvers involving a back-to-earth presentation; all
ground training must be conducted by an instructor in that student’s training method, until
demonstrating stability and heading control prior to and within five seconds after initiating two
intentional disorienting maneuvers involving a back-to-earth presentation.
 Tandem training jumps: Instructor conducting a tandem jump must hold a current Tandem
licence: Instructor rating and a manufacturer’s type rating; intentional back-to-earth or vertical
orientations that cause tandem freefall speeds exceeding that of drogue fall are prohibited.
Equipment:
 When performing night jumps, each skydiver must display a light that is visible for at least
three statute miles from the time the jumper is under an open parachute until landing.
 All students are to be equipped with the following equipment until they have obtained a license
– a rigid helmet (except tandem students); a piggyback harness and container system that
includes a single-point riser release and a reserve static line (except students cleared for
freefall self-supervision); a visually accessible altimeter (except tandem students); a functional
automatic activation device that meets the manufacturer's recommended service schedule; a
ram-air main canopy suitable for student use; a steerable reserve canopy appropriate to the
student's weight; for freefall, a ripcord-activated, spring-loaded. pilot-chute-equipped main
parachute or a bottom-of-container (BOC) throw-out pilot chute.
Source: Adventure Tour Operator Association Of India

Page 18
Project Structure

Project structure for conducting aero sports activities

Developing a hub for aero sports activities at Amreli is planned to be implemented through PPP
model. The state government will be responsible for developing the physical infrastructure at the
Amreli airport, while the private player will be responsible for all aero sports operations. The
operators may use the Amreli airstrip and adjoining facilities on lease.

Government releases an RFP to

the empanelled list of consultants
for Project Consultant role

Government authority Project consultant

The consultant undertakes

The private
techno-economic feasibility
investor will use
study and master plan
the site for its
preparation; assists with bid
operations for an
process management and
annual lease
partner selection process; and
Government selects the
acts as a project management
private player through
consultant during the
competitive bidding
SPV implementation period until
process and enters into an
one year of commercial
agreement to form an SPV
operations

Private investor
(project developer)

The developer will provide

suitable equipment and facilities
at the site mentioned considering
site specific environmental and
relevant factors

Page 19
Project Structure

Project structure for aero sports training center

Recently, Centres of Excellence (CoE) in Gujarat have been built via PPP model, with MoUs being
signed between the government of Gujarat and industry partners. The companies manage the
center for two years and then hand it over to the state government.
A similar model is proposed for the aero sports training center.

Proposed project structure Details of the MoU

 Objectives of establishing a
CoE/ training center
Government of  Methodology including key
Industry partner
Gujarat activities to be undertaken and
deliverables
MoU agreement to  Scope of work to include
set-up a CoE
enrolment of students and
training them
Establishment of CoE/
training center as per  Terms for the Sanction of
contract terms Financial Support by the
Government of Gujarat

 Local Board of Governance to

Operated by a private
partner for a fixed amount
oversee the implementation and
operations of the CoE and
project outcomes
 Obligation of the Proposer and
Government

 Duration of the CoE

 Utilization of funds by gauging

activities carried out

Handling over operations  Limitation of Liability

to institution/government  Jurisdiction of the Agreement
for loyalty payment

Page 20
Project Financials

Estimated project cost for aero sports activities

Key cost components (Indicative) INR crore

Private investment

Cessna 180 Skylane skydiving plane 0.5

Equipment 1.83

Vehicles 0.7

Office equipment 0.03

Furniture and fixtures 0.04

Preliminary and pre-operative expenses 0.09

Provision for contingencies 0.03

Total 3.2

Government investment

Development of physical infrastructure (hangar, administrative building,

4.0
washrooms, changing rooms, lockers, cafeteria, parking)

Total cost ~7.2 crore

Estimated major financial Indicators

(on the basis of 10 years of operations)
Financial indicator Average for project

Gross profit margin 33.09%

Net profit margin 16.49%

Return on investment (ROI) 50.77%

Internal Rate of Return (IRR) 27.64%

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Project Financials

Estimated project cost for aero sports training center

Key cost components (Indicative) INR crore

Building and civil works (Hostel, classrooms and other facilities) 4

Equipment 1.83

Furniture and fixtures 0.4

Preliminary & pre-operative expenses 0.9

Provision for contingencies 0.3

Total cost ~ 7.43 crore

Indicative financial assistance provided by sports CoEs to trainees

Residential trainees
Particulars (per annum, per trainee) INR
Boarding expenses 225

Sports kit (Max. INR.6000) 6000

Competition exposure 6000

Medical expenses 2000

Insurance 150

Other expenses 850

Total 15,225

Non-residential trainees
Particulars (per annum, per trainee) INR
Sports kit 6000

Competition exposure 3000

Stipend 9000

Insurance 150
Total 18,150

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Approvals

Approvals required

Establishing an aero sports hub at Amreli would require approvals from following
government authorities:
 Clearance from Ministry of Civil Aviation (MoCA)/ Directorate General of Civil Aviation (DGCA)
 Clearance from Gujarat State Aviation Infrastructure Company Limited (GUJSAIL)
 Clearance from Department of Civil Aviation, Gujarat
 Adventure Tour Operator (ATO) registration with the Department of Tourism
 Approval from Aero club of India (ACI) for aero sports events
 Local body clearances
 Any other approvals from Central or State Government or Local bodies or Statutory
Authorities
 Certified aero-modeling course from Aero-modeling Association (AMA)

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Incentives

Incentives for aero sports activities

Central Government:
 The Central Financial Assistance is being extended to various State Governments/ Union
Territory Administrations for development of adventure tourism destinations.

State Government:
 Adventure sports have been classified as Tourism Unit under the New Tourism Policy.
 Following are some of the capital subsidy incentives on Tourism Units:

Admissible Maximum
Eligible capital investment (excluding the land cost)
subsidy limit
Investment upto INR50 crore 15% INR7.5 crore
Investment above INR50 crore 15% INR10 crore
Tented accommodation (with minimum investment of INR20 lacs) 20% INR15 lakh
Equipment worth INR1 crore and above for adventure & water sports 10% INR50 lakh

 Following are some of the interest subsidy to the eligible tourism units:
 @5% of the loan amount with maximum amount of INR25 lakh 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 INR30 lakh per annum for a period of
five years in the areas other than mentioned above.
 Exemption from luxury tax/entertainment tax/electricity duty applicable to eligible tourism
units for a period of five years from the date of commencement of commercial operations.

Incentives for aero sports training

The Ministry of Skill Development & Entrepreneurship, through its agencies and programs,
provides various incentives for corporates that setup Corporate Skill Excellence Centres

Agency name Incentive

National Skill Development over INR2,500 crore in investment through NSDC in promoting
Fund (NSDF) PPP models.

Under Section 35 CCD of the Income Tax Act a company can

National Skill Development
avail benefits of weighted tax deductions of 150% of the expenses
Agency (NSDA)
(other than land or building) on skill development.

Application of Service Tax Exemption for vocational

National Skill Development education/training/skill development courses offered by any
Corporation (NSDC) institution setup by the Government of India, State Government or
any local authority

Page 24
 Gujarat State Aviation Infrastructure Company Limited (GUJSAIL)

https://gujsail.gujarat.gov.in/

Tourism Corporation of Gujarat Ltd

www.gujarattourism.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.

Near Torrent Sub Station, SVIP Airport,

Ahmedabad - 380 004
Phone: 91-079-22882000
Email: ceo@gujsail.org