U T TA R A K H A N D. October

Transcription

1 U T TA R A K H A N D October

2 STATE ECONOMY & SOCIO-ECONOMIC PROFILE

3 STATE ECONOMY & SOCIO-ECONOMY PROFILE Uttarakhand A Snapshot State of Uttarakhand was formed on 9 th of November, 2000 as the 27 th state of India Formed by carving out the 14 hilly districts of the State of Uttar Pradesh Strategically located and forms part of the Northern boundary of the country sharing borders with Nepal and Tibet (China); touches Tibet in the North, Himachal Pradesh in the West and Northwest, gangetic plains of Uttar Pradesh in the south and Nepal in the East Uttarakhand has diverse geographical features ranging from snow-capped mountain peaks in the north to the tropical forests in the south; equally diverse is its climate and vegetation

4 STATE ECONOMY & SOCIO-ECONOMY PROFILE Uttarakhand A Snapshot One of the five states in India to be declared as UNESCO s World Heritage Biodiversity sites Occupies an area of 53,483 sq km and has a population of 8.5 million Administrative and legislative capital is Dehradun

5 STATE ECONOMY & SOCIO-ECONOMY PROFILE Socio Economic Snapshot Capital Area Population (Census 2001) Density (2001) Sex Ratio (Census 2001) Principal Languages Literacy Rate (Census 2001) Major Minerals Major Industries Major Crops GSDP at current prices in Dehradun 53,483 sq km 8.5 million 158 per sq km 962 females per 1000 males Hindi, Garhwali, Kumaoni 71.6% Limestone, soapstone and magnesite Hydropower, floriculture, horticulture, agro-based and food processing industries, information and communication technology, biotechnology Rice, Wheat, Barley, Corn, Mandua, Hangora US$ 5,365.6 million

6 STATE ECONOMY & SOCIO-ECONOMY PROFILE Socio Economic Snapshot NSDP at current prices in Annual Per Capita Income at current prices in Domestic Airports US$ 5,060.2 million US$ Jolly Grant, Pant Nagar Source: Uttarakhand State official website Source: Official website of Ministry of External Affairs, GOI Source: Indiastat

7 STATE ECONOMY & SOCIO-ECONOMY PROFILE Economic Profile Gross State Domestic product (GSDP) at current prices in (as of Feb 2006) was US$ 5,365.6 million Net State Domestic Product (NSDP) of the state at Current Prices ( ) was US$ 5,060.2 million The service sector contributes to more than half of the state s GDP at 51%, followed by the agricultural and mining sector at 24% and the manufacturing sector at 25% in GSDP (in million US$) Source: Uttarakhand State Government

8 STATE ECONOMY & SOCIO-ECONOMY PROFILE Economic Profile State is essentially driven by the tertiary sector; tourism is one of the key sectors with a major contribution to the state s economy 24% of the GSDP contributed by the primary sector which includes agriculture, cultivation, mining activities etc. Sector Contribution to GSDP ( ) 25% 51% 24% Teritiary Sector Primary Sector Secondary Sector Source: Uttarakhand State Government

9 STATE ECONOMY & SOCIO-ECONOMY PROFILE Socio-Economic Profile Per capita income grew at a CAGR of 5.2% per annum between and In , the per capita income of the state stood at US$ 595 State s literacy rate has increased considerably from 57.75% in 1991 to 71.60% in 2001; higher than India s average literacy rate of 65.38% Work Participation Rate (WPR) is 36.93% for Uttarakhand and 39.30% for India as per 2001 Census Per Capita (In US$) Source: Uttarakhand State Government

10 INFRASTRUCTURE STATUS

11 INFRASTRUCTURE STATUS Physical Infrastructure Railways Deployed 345 kms of rail routes by As on 31 March 2005, density of rail routes is 6.45 route km for every thousand sq km State plans to increase the share of railways in cargo and passenger transportation Efforts being made in conjunction with the Urban Development Department to establish Mono Rail System in Dehradun, Haridwar and Rishikesh and their inter-city linkage routes

12 INFRASTRUCTURE STATUS Physical Infrastructure Airways State aims at positioning air-transport as a reliable all-weather transport option in hills Upgradation work at the Pantnagar Airport to facilitate international flights is under progress Government has allocated US$ 0.23 million for construction of at least one helipad per district Flight Connectivity No. of Airports 2 Only from Delhi

13 INFRASTRUCTURE STATUS Physical Infrastructure Roads Total length of road in the state in was 27, km. 9,419 villages out of a total of 15,656 connected as on March, 2005 Public Works Department of the state has planned several Build Operate Transfer projects under Public Private Partnerships US$ million was spent on road transport in , 40% higher than the previous year s expenditure Total Road Network National Highways State Highways 27, Km 1, Km 1, Km

14 INFRASTRUCTURE STATUS Physical Infrastructure Transport Network in Uttarakhand

15 INFRASTRUCTURE STATUS Physical Infrastructure Power & Urban Urban Infrastructure Urban infrastructure development became a priority sector for the state government since with an allocation of US$ million for its activities which was further increased to US$ million for the year State housing projects have been taken up under various urban infrastructure development projects; 275 acre housing project in Haridwar is one of the instances of such projects With an aid of US$ million from the Government of India, conservation and rejuvenation project of Naini Lake and four other lakes in the surrounding areas has been taken up Input Growth/ Achievement Villages Electrified (Nos.) Hamlets Electrified (Nos.) BPL Connections (Nos.) PTW Connections (Nos.) Consumers (Nos.) Rural Electrification % (incl. UREDA ) AT&C Losses % Annual Per Capita Consumption (KWh) Human Capital Workforce (Nos.) Source: Uttarakhand State Government

16 INFRASTRUCTURE STATUS Physical Infrastructure Power & Urban Power Being developed as an energy state to tap its huge hydro electric power generation potential of 20,000 MW State intends to increase its capacity to 5,000 MW of hydro electric power by State has simultaneously supported alternate sources of power generation; solar water heaters with heating capacity of 97,500 litres per day, 7 biogas-bracketing plants, 12 solar plants and a state-level energy park in Dehradun Input Growth/ Achievement Villages Electrified (Nos.) Hamlets Electrified (Nos.) BPL Connections (Nos.) PTW Connections (Nos.) Consumers (Nos.) Rural Electrification % (incl. UREDA ) AT&C Losses % Annual Per Capita Consumption (KWh) Human Capital Workforce (Nos.) Source: Uttarakhand State Government

17 INFRASTRUCTURE STATUS Urban Infrastructure Concentrated effort to ensure supply of pure drinking water; state government is encouraging traditional methods of water harvesting like nauley, dharey, chal and khal In , US$ million spent on improvement of water supply systems; government proposes to spend US$ million on further improving the water supply in the state during Drinking Water Supply Details in Uttarakhand ( ) Inhabited Revenue Villages Covered 15,547 Population Covered million Scarcity Villages 4 Scarcity Hamlet (i) Not Covered (N.C.) 4,362 (ii) Partially Covered (P.C.) 13,622 Source: Uttarakhand State Government

18 INFRASTRUCTURE STATUS Urban Infrastructure Government has undertaken development of total sanitation systems for villages in the state Worked at developing the waste-disposal system under Total Sanitation campaign Partial sewer arrangements have been provided in one-third of the towns in the state. Development under Total Sanitation for Village in Uttrakhand Garbage Pits Soakpits Compost Pits Constructed 5,067 5,823 2,834 5,330 4,506 7,590 Individual Toilets Constructed 10,316 31, ,000 10,000 15,000 20,000 25,000 30,000 35, Source: Uttarakhand State Government

19 INFRASTRUCTURE STATUS Social Infrastructure - Health State has a good network of hospitals and health centres; created the health and population policy to improve the quality of life of its people by focusing on developing an effective health infrastructure Following are some of the objectives laid down by the state in its health and population policy: Eradicate polio by 2007; Reduce the level of leprosy to below 1 per 10,000 population by December 2007; State Allopathic Hospitals and Dispensary District Level Hospital 14 Base Hospital 3 P.H.C./Additional P.H.C. 224 Community Health Centre 49 State Allopathic Hospitals 322 Joint/ Women Hospital 40 Tehsil/ Dist. Level 24 Post partam Centre Health Post 9 Tuberculosis Hospital/Clinic 18 Leprosy 3 Beds in Govt. Hospitals 7,676 Source: Uttarakhand State Government

20 INFRASTRUCTURE STATUS Social Infrastructure - Health Reduce mortality on account of tuberculosis, malaria, other vector and water-borne diseases by 50% by 2010; Reduce prevalence of blindness from around 1 to 0.3% by 2010; Reduce Iodine Deficiency Disorder (IDD) by 50% of the present level by 2010; Increase awareness on HIV/AIDS Family Welfare Services Women and Child Welfare Centres 2 Main Centres 84 Women and Child Welfare Sub-Centres Other Hospitals 1,631 Homeopathic Hospital/Dispensary 97 Ayurvedic Hospitals 495 Unani Hospitals 3 Source: Uttarakhand State Government

21 INFRASTRUCTURE STATUS Social Infrastructure - Education State has to its credit some of the country s best institutes of higher learning like: GB Pant University of Agriculture and Technology in Pantnagar; Indian Institute of Technology in Roorkee Forest Research Institute in Dehradun GB Pant Institute of Himalayan Environment and Development in Almora Rural Biotechnology Complex in Kosi and Herbal Research and Development Institute, Gopeswar Basic/ Secondary Education Numbers of Schools/ Colleges 20,875 Number of Students 2,142,888 Numbers of Teachers 80,154 Higher Education Number of Institutions 98 Number of Students 119,846 Number of Teachers 1,581 Source: Uttarakhand State Government

22 INFRASTRUCTURE STATUS Social Infrastructure - Education With a current literacy rate of 71.6%, the state strives to achieve 95% literacy rate, for which it has adopted a three-fold strategy with the following elements: * 100% enrolment * 100% retention * Continuous Education Programme State plans to achieve 100% computer literacy for students by the end of the 10th five-year plan For this purpose the state has worked at improving the IT infrastructure at all levels beginning with educational institutions Vocational and Technical Education Industrial Training Institutes 104 Polytechnics 30 Distant Institute of Education and Training Source: Uttarakhand State Government 9

23 INFRASTRUCTURE STATUS Physical Infrastructure Telecom & IT Well-developed communication network including both wired and wireless connectivity Establishment of a Software Technology Park of India Earth Station at Dehradun and proposed Earth stations at other locations has positioned Uttarakhand well with respect to providing high speed connectivity. Information Technology Department has actively worked in developing two information technology parks in the state in Communication Infrastructure in Uttarakhand ( ) Postal and Communication Services Number of units Post Offices 2,719 Number of Telephone Exchanges 453 Telegraph Offices 163 PCOs 14,577 Telephone Connections (Including WLL) by BSNL 404,163 Mobile phone connections by BSNL 283,941 Source: Uttarakhand State Government

24 INFRASTRUCTURE STATUS Physical Infrastructure Telecom & IT The Uttarakhand State Wide Area Network (USWAN) project proposed has been approved by the Government of India. By the end of , the state aims at having the required Information Technology infrastructure for USWAN and Data Centre in place. Key Highlights Development of PKI/Smart Card Infrastructure World s first Microsoft IT Academy was established in Dehradun Uttarakhand is among the leading states in computer education

25 INFRASTRUCTURE STATUS Industrial Infrastructure State has transformed an essentially agrarian state into a hub of industrial activity. During , the state successfully developed the following: * 3 Integrated Industrial Estates (IIEs) at Haridwar, * Pantnagar and Sitarganj * Pharma City at Salequi * Information Technology Park at Sahastradhana (Dehradun) * Growth Center at Siggadi (Kotdwar)

26 INFRASTRUCTURE STATUS Industrial Infrastructure In , Uttarakhand also saw the development of 20 Private/Joint/Co-operative sector industrial sectors in Public-Private Partnership mode Some of the other efforts made in this direction include: * Provision of broadband connectivity for all industries in the state * Proposed strengthening of single window Contact, Information and Facilitation mechanism during

27 INFRASTRUCTURE STATUS Industrial Infrastructure Industrial estates at a glance Name of the Estate Location Location Financial Incentives Proposed Industries Integrated Industrial Estate - Haridwar 3 kms from Delhi-Haridwar National Highway 2,034 acres 100% Central Excise exemption for 10 years 100% Income Tax exemption for first 5 years and 30% for next 5 years Central Sales for 5 years Capital Investment with a maximum of US$ 73,170 Cosmetics and allied Plastic and allied Apparel and allied Agro food and allied Pharma products Electrical, electronics and allied Institutional, commercial and allied Integrated Industrial Estate - Pantnagar National Highway number NH-87 3,339 acres 100% Central Excise exemption for 10 years 100% Income Tax exemption for first 5 years and 30% for next 5 years for 5 years Capital Investment with a maximum of US$ 73,170 Cosmetics and allied Plastic and allied Apparel and allied Agro Food and allied Pharma products Electrical, Electronics and allied Furniture hub Institutional, commercial and allied

28 INFRASTRUCTURE STATUS Industrial Infrastructure Industrial estates at a glance Name of the Estate Location Location Financial Incentives Proposed Industries Integrated Industrial Estate, Sitarganj 15 km north of Sitarganj town 1,200 acres NA NA Pharma City, Selaqui Industrial Area, Dehradun 25 Km from Dehradun 50 acres 100% Central Excise exemption for 10 years 100% Income Tax exemption for first 5 years and 30 % for next 5 years for 5 years Capital Investment with a maximum of US$ 73,170 Sigaddi Growth Centre 120 Km from Dehradun 100 acres 100% Central Excise exemption for 10 years 100% Income Tax exemption for first 5 years and 30 % for next 5 Years for 5 years Capital Investment with a maximum of US$ 73,170 Pharmaceutical formulation industry to be preferred Thrust sector industries only

29 INFRASTRUCTURE STATUS Industrial Infrastructure Industrial estates at a glance Name of the Estate Location Location Proposed Facilities State-of-the-Art Information Technology Park Sahastradhara road 60 acres Ready-to-occupy hi-tech intelligent building Developed plots of varying sizes Academic zone for educational and research organisations STPI Incubation center to promote local entrepreneurs Large tracts of land have been devoted to green areas and open spaces Habitat centre to cater to business support and recreational needs of the occupants Other support facilities such as conference hall, training centres, guest house, travel and forex service, banks and ATMs, multi-cuisine food court, health club with gym, medical centre, serviced apartments, library and information bureau, indoor and outdoor sport facilities like squash, tennis, badminton courts, billiards etc. Source: State Infrastructure & industrial development corporation of Uttarakhand Ltd

30 STATE POLICIES & INCENTIVES

31 STATE POLICIES & INCENTIVES State Level Policies New State Industrial Policy 2003 Aim of the policy is to provide a comprehensive, investor-friendly environment for rapid and sustainable industrial development Thrust of the policy is on generating additional employment opportunities and increasing the State Domestic Product

32 STATE POLICIES & INCENTIVES State Level Policies New State Industrial Policy 2003 Policy aims at promoting Public Private Partnerships in development and management of infrastructure projects such as: * Industrial Estates and Growth Centers * IIDCs, Special Economic and Commodity Zones and Parks * Theme parks, tourism infrastructure, development of new tourist destinations, airports/helipads / airstrips, roads and power projects New policy also focuses on promoting small scale, cottage, khadi and village industries, handicrafts and handloom sectors

33 STATE POLICIES & INCENTIVES State Level Policies Tourism Policy The tourism policy of the state aims at: Placing Uttarakhand on the tourism map of the world as one of the leading tourist destinations, and to make Uttarakhand synonymous with tourism Developing the manifold tourism related resources of the state in an eco-friendly manner, with the active participation of the private sector and the local host communities Developing tourism as a major source of employment and income/revenue generation and as a pivot of the economic and social development in the state

34 STATE POLICIES & INCENTIVES State Level Policies Information Technoloy Policy Encourage the use of Information Technology in the Government not only as a tool for management and decision support systems but also to re-engineer the processes of the Government to provide a more efficient, transparent, accountable and responsive government to its citizens Upgrade the quality of life of citizens of the State by facilitating easy access to consumer applications of Information Technology Encourage private sector initiatives for the development of world class Information Technology infrastructure adequate for the needs of the citizens, the industry and the Government.

35 STATE POLICIES & INCENTIVES State Level Policies Upgrade and develop manpower skills required for the Information Technology industry and to accelerate the use of Information Technology in schools, colleges and other educational institutions with a view to providing skills and knowledge to the youth so as to render them fit for employment in this industry Use Information Technology as a GDP driver by promoting IT industry in the state, developing the state as an attractive IT destination with a view to generate employment for youth in this sector and raising their earning capacity and simultaneously realizing the export as well as domestic revenue potential in this sector

36 STATE POLICIES & INCENTIVES State Level Incentives Category Capital Investment Subsidy Interest Subsidy Details of State level incentives for industries 15% central capital investment aid up to a maximum of US$ 73,170 for the establishment of new industrial units and for the purchase of equipment and machinery for significant improvement in existing units. 3% annual relief on loans to new SSI units and SSI units expanding at least 25% provided the loan is availed from state level financial institutions or banks operating in Uttarakhand and have not defaulted in principal or interest payments. 5% waiver on annual interests on loans on SSI units and units notified as thrust industries being set up in remote areas. Land Subsidy Registration of patents and other IPR Power Subsidy Others Concessions Stamp duty concessions to be provided in respect of land in specialized commodity parks, including IT parks. 75% of the cost (subject to a maximum of US$ 4,878) for registering patents shall be reimbursed No restriction in the state in using power during the peak hours A 100% relief in the State Excise Duty for a period of ten years A 100% relief in Income Tax for the first five years, and thereafter a 30% relief to companies and 25% relief for others 1% for 5 years Exemption from entry tax on plant and machinery for setting up industry, undertaking substantial expansion and modernisation 100% exemption on entertainment tax for Multiplex projects for a period of 3 years 100% exemption on entertainment tax on Amusement parks and Ropeways for a period of 5 years 75% of the total expenditure incurred in obtaining national/international quality marks to be reimbursed 50% of the cost incurred in installing pollution control equipments to be reimbursed Matching State subsidy on approved projects of National Horticulture Board (NHB), Agricultural and Processed Food Products Export Development Authority (APEDA), National Medicinal Plant Board (NMPB) Source: Government of Uttarakhand

37 STATE POLICIES & INCENTIVES Thrust Industries Thrust Industries Floriculture Processing of medicinal and aromatic herbs Honey Horticulture and agro based industries such as Sauces, ketchup, etc. Fruit juices and fruit pulp Jams, jellies, vegetable juices, puree, pickles etc. Preserved fruits and vegetables Processing of fresh fruits and vegetables including packaging Processing, preservation, packaging of mushrooms Food processing industry excluding those included in the negative list Sugar and its by-products Silk and silk products Wool and woolen products Woven fabrics (Excisable garments) Sports goods and articles Equipment for general physical exercise Equipment for adventure sports/activities, tourism (to be separately specified) Paper and paper products excluding those in negative list (as per excise classification) Pharma products Information and communication technology industry Computer hardware Business process outsourcing Bottling of mineral water Eco-tourism Hotels, Resorts, Spa, Entertainment/Amusement parks and Ropeways Industrial gases (based on atmospheric fraction) Handicrafts Non-timber forest product based industries Source: Uttara Portal

38 BUSINESS OPPORTUNITIES

39 BUSINESS OPPORTUNITIES Attractive Sectors Tourism Tourism is an important sector for the state s economy Uttarakhand is already a well-renowned pilgrim destination During 2005, the state registered a growth of about 18% in domestic and 24% in international tourist arrivals over the previous year Sector Specific Incentives Category Benefit Period (years) New tourism units New ropeways New amusement parks Rebate/deferment facility in respect of luxury tax from the date of commencement Exemption from payment of entertainment tax from the date of commencement Exemption from entertainment tax from the date of becoming fully operational 5 5 5

40 BUSINESS OPPORTUNITIES Attractive Sectors Tourism Investment opportunities that exist in the tourism sector include: * Development of facilities for providing Spiritual lessons, Reiki, and other rejuvenating courses * Eco-tourism hotels, Spa, Resorts, Amusement parks and Ropeways * Winter sports at places such as Auly, which have the requisite terrain for the purpose * Adventure tourism

41 BUSINESS OPPORTUNITIES Attractive Sectors Agro and Food Processing High bio-diversity makes the state an attractive destination for Agro and Food Processing Industries State offers immense opportunities for establishing agro and food parks Higher incentives being offered by MFPI for setting up units in Uttarakhand State government is also providing various subsidies for projects under APEDA, NHB, MFPI and NMPB

42 BUSINESS OPPORTUNITIES Attractive Sectors Floriculture and Horticulture Demand in domestic and international market has shifted the Government s focus to floriculture and horticulture Geographical location makes the state particularly conducive to commercial horticulture and floriculture Immense opportunities for floriculture and horticulture parks in the state

43 BUSINESS OPPORTUNITIES Attractive Sectors Biotechnology Rare species of plants and animals found in the state add to its natural advantage in this sector Government plans to develop Uttarakhand as a centre of excellence in biotechnology Government proposes to grant industry status to units coming up in the sector; provisions made for the IT sector shall be applicable to this sector as well

44 BUSINESS OPPORTUNITIES Attractive Sectors IT and Communication IT and ITeS have been accorded industry status Uttarakhand offers high-speed connectivity via an STPI earth station at Dehradun Emerging as an ideal IT destination with an IT Park in Dehradun, an IT-BT Park in Pantnagar, and several other up-coming projects thereby offering immense opportunities in the sector Hydro power Untapped potential for generating hydropower State aims to position itself as the most competitive supplier to the Northern Grid State has a potential to generate nearly 15,000 MW of hydropower and 47 locations have already been identified for private sector

45 BUSINESS OPPORTUNITIES Attractive Sectors Forest Products Excellent potential for the development of forest resources-based industries Ample scope to develop industries based on forest and agro wastes such as lantana, pine needles and plant and vegetative fibers State also offers immense opportunities for medicinal, aromatic plant and herbal export oriented units

46 BUSINESS OPPORTUNITIES Emerging Opportunities Other Attractive Sectors Sericulture Sector has the prospect of emerging as a major sector in the years to come. Muga cocoon produced in the state is comparable to the best quality available in India Fisheries With Uttarakhand s large water resources, the possibility of developing fisheries is immense. The Fisheries Policy declared in 2002 is devised aiming at integrated development of fisheries and use of scientific techniques

47 BUSINESS OPPORTUNITIES Emerging Opportunities Other Attractive Sectors Tea Uttarakhand has emerged as the only state outside the traditional tea growing areas to produce Organic Orthodox Tea. It is also proposed to bring in additional acreage under tea plantation over the next few years. Bamboo and Fibre Developments State Government has established a Bamboo and Fibre Development Board to develop this sector.

48 BUSINESS OPPORTUNITIES Investments in Uttarakhand Industrial Investment Inflow Period Total proposals IEM + LOI Proposed Investment (US$ million) IEM + LOI % Share Proposed Employment (Numbers) IEM + LOI IEM + LOI Mar , Mar , , Mar , , Mar-04* 490 2, , Nov , , Dec , , *Investment Proposals since March 2004 also include DILs Share of Uttarakhand in Total Industrial Investment proposals Percentage Mar Mar 02 Mar 03 Mar 04 Nov 04 Dec 05 Source: Department of Industrial Policy and Promotion Ministry of Commerce and Industry

49 BUSINESS OPPORTUNITIES Investments in Uttarakhand Year-wise Distribution of IEMS Filed in Uttarakhand till Year Numbers Proposed Investment (US$ million) Aug 1991 to Dec , , Source: Department of Industrial Policy and Promotion Ministry of Commerce and Industry

50 BUSINESS OPPORTUNITIES Upcoming Investments Sector Automotive Expected Investment US$ million Major Investors Tata Motors, Hero Honda, Ashok Leyland, M&M, Bajaj Auto. Investment envisaged in Uttrakhand (In US$ million) Pharmaceuticals US$ million Ranbaxy, Natco, Pegasus, Chris Pharma, Intas Labs, Martin and Harris Lab Processed Foods US$ million Parle, Britannia, Nestle, Dabur, Raja Biscuits Footwear US$ million Action, Lakhani, and Liberty FMCG US$ million Hindustan Lever Ltd, CavinKare, Cosmos, Lotus, and Herbal Concept Information Technology US$ million HP (Hewlett-Packard) and HCL Infosystems Automotive Processed Foods FMCG 1, Pharmaceuticals Footwear Information Technology

51 BUSINESS OPPORTUNITIES Key Investors Name of Company Location Products Project Cost in US$ million ITC Limited IIE, Haridwar Food and personal care products Britannia Industries Ltd IIE, Pantnagar Biscuits and other food products Dabur India Ltd IIE, Pantnagar Health care, personal care, ayurvedic cosmetics Cavinkare Pvt. Ltd Twenty First Century Printers Ltd Somany Foam Limited Polar Industries Ltd IIE, Haridwar IIE, Haridwar IIE, Haridwar IIE, Haridwar Cosmetic, shampoos/creams, deodorants Printed packaging material, cartons, boxes, shells and labels Polyurethane foam mattress, FT foam sheets Electrical fans, water lifting pumps, geysers, water purifiers and laminations Havell s India Ltd IIE, Haridwar Electrical products 3.96 VIP Industries Ltd IIE, Haridwar Plastic moulded luggage 3.95 Lakhani India Ltd IIE, Haridwar Footwear and parts 3.70

52 BUSINESS OPPORTUNITIES Key Investors ITC One of India s foremost private sector companies with a market capitalisation of nearly US$ 15 billion and a turnover of over US$ 4.75 billion Established manufacturing facility in Uttarakhand for producing soaps and shampoos Hiltron Independent corporation that initially worked to promote development of electronics and allied industries and services in Uttarakhand Currently functioning as an IT and Communication service provider to the state under administrative control of department of IT

53 BUSINESS OPPORTUNITIES Key Investors Tata Motors Tata Motors, one of the leading firms in the country in the automobile sector has set up its fourth plant in Uttarakhand This plant in Pantnagar has been set-up for manufacturing the firm s mini truck named Ace Hero Honda One of the leading brands in India for two wheelers Established a new manufacturing plant in Haridwar Plant is intended to have a capacity of 500,000 units

54 BUSINESS OPPORTUNITIES Key Investors Ashok Leyland Started work for a state-of-the-art, integrated manufacturing plant near Pantnagar in Uttarakhand Planning to invest US$ million to create assembly and cab facilities for 25,000 vehicles annually in the first phase Scheduled to go on stream in Phase II is expected to be operational by 2010 Mahindra & Mahindra Mahindra & Mahindra Limited (M&M) is a major automaker in India. The new plant of the company in Uttarakhand is the company s fifth full-scale automotive plant and has been set up primarily for the manufacture of three-wheelers of different load capacities and range

55 BUSINESS OPPORTUNITIES Key Investors Hindustan Lever HLL is India s largest fast moving consumer goods company Hindustan Lever Limited s (HLL) state-of-the-art personal care factory, set up with an initial investment of US$ million in SIDCUL s IIE in Haridwar HCL Infosystems One of the largest vertically integrated IT manufacturing company of India Launched its manufacturing facility at Rudrapur, Uttarakhand in the SIDCUL Industrial Estate. Overall capacity of HCL to 2 million personal computers per annum

56 BUSINESS OPPORTUNITIES Key Investors Nestle India Ltd Nestle is the world s largest and most diversified food company Around 2,50,000 employees worldwide, 500 factories in approximately 100 countries and offers over 8,000 products universally Nestlé India has commissioned in 2006, its 7th factory at Pant Nagar in Uttarakhand

57 BUSINESS OPPORTUNITIES Key Investors Britannia Britannia is one of India s food products company, with an estimated 38% market share Company s principal activity is the manufacture and sale of biscuits, bread, cakes and dairy products like cheese, butter and milk Established a plant in the Integrated Industrial Estate at Pantnagar

58 DOING BUSINESS

59 DOING BUSINESS Key Approvals Required List of Approvals and Clearances Required Departments to be Consulted Prior to setting up the unit Registration Allotment of Land/Shed Power load approval for construction load Approval for Construction of Building Activity under Factories Act No Objection Certificate Provisional Trade Tax Registrations Registration under Central Sales Tax Act Before Commencement of Production Environmental clearances No Objection Certificate Permanent Trade Tax Registration Registration under Central Sales Tax Act 1956 Industries Department Uttarakhand Industrial Development Department Ltd./UttarPradesh State Industrial Development Department Ltd./ Industry Division, Uttarakhand Uttarakhand State Electricity Department Labor Department Department of Fire Central and State Excise Departments Central and State Excise Departments Uttarakhand Environment Protection and Pollution Control Board Department of Fire Permanent Trade Tax Registration Central and State Excise Departments

60 DOING BUSINESS Cost of Doing Business S. No. Sector Cost 1 Manufacturing a Land Price (US$/sq mt)* b Labor (US$/man year) Industrial Electricity (US cents/unit) a Normal Hours 4.6 b Peak Hours 5.8 c Non-Peak Hours Prime Lending Rate (%) 12.75% % 4 Hotel Stay (US$/night) a 2 Star b 3 Star 49 73

61 DOING BUSINESS Business Climate Abundance of Natural Resources Abundance of natural resources Presence of many water bodies make it ideal for hydro power generation Ample irrigation, favourable geographical and climatic conditions make it ideal for Agro based industries Expanding Industrial Infrastructure The state has seen considerable overall development as a result of the policies of the State Government. Location Advantage Proximity to NCR makes it one of the nation s leading market accessible from Uttarakhand Also, the state has excellent connectivity to all its neighboring states

62 DOING BUSINESS Business Climate Favorable Policies and Incentives Large benefits offered by state in terms of tax exemptions, reimbursements on loans, interest incentives, financial assistance, subsidies and concessions High Literacy Rates State s literacy average is above the national level Abundant pool of talented human resources as Uttarakhand is host to some of the leading educational institutions in the country Proactive Government Government is reputed for its efficiency which is very well reflected in the policies brought out by the state that addresses current issues in the administration

63 OVERALL STATE COMPETITIVENESS

64 OVERALL STATE COMPETITIVENESS Advantage Uttarakhand Proactive State Government and efficient administrative system Wide range of fiscal and non-fiscal incentives Excellent connectivity internally and to the National Capital Region ( NCR ) and continual development of good transportation infrastructure Wide-spread opportunities in sectors like floriculture and horticulture Presence of rare medicinal herbs, with over 175 species found in the state is an added advantage for the success of agro-based industries Rich mineral deposits of limestone, soapstone and magnesite among other minerals providing opportunities in the mining sector

65 OVERALL STATE COMPETITIVENESS Advantage Uttarakhand Quality education infrastructure coupled with presence of premier institutes like Indian Institute of Technology in the district of Roorkee Huge potential for hydropower generation as a result of vast water resources Unmatched tourism potential for leisure, adventure, and religious tourism Peaceful and secure industrial environment Established industrial estates like Pantnagar, Dehradun, Haridwar, Selaqui and Sitarganj with all necessary infrastructure facilities Presence of key industrial players like Tata Motors, Mahindra & Mahindra, Ashok Leyland, Hero Honda, Hindustan Lever, and HCL Info Systems Source: Uttarakhand State official website Official website of Ministry of External Affairs, GOI, Indiastat

66 OVERALL STATE COMPETITIVENESS Overall State Competitiveness Parameter Uttarakhand Opportunities in Type of Industry Tourism IT Based Industries Tea Based Industries Food Processing Industry Pharmaceuticals and bio-tech Agro Based Industry High Medium Low

67 OVERALL STATE COMPETITIVENESS Overall State Competitiveness Parameter Uttarakhand Opportunities in Type of Industry Forest Based Industry Mineral Based Industry Engineering Industry Chemicals Industry Handloom and Handicrafts Sector High Medium Low

68 OVERALL STATE COMPETITIVENESS Overall State Competitiveness Parameter Uttarakhand Policy Incentives Setting up and Carrying out Business Industrial Infrastructure Existing and Proposed Power Transportation Industrial Estates/Areas STP High Medium Low

69 OVERALL STATE COMPETITIVENESS Overall State Competitiveness Parameter Uttarakhand Industrial Infrastructure Existing and Proposed EPIP EPZ High Medium Low

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