Momentum Jharkhand
Focus Sectors Stable Government Sector Focused Policies & Incentives Remains of the history of Technology & Industry Leading Mineral Producing State in India Why Jharkhand? Dynamic Leadership Progressive Policies Industrial Heritage Resourceful Geography Visionary Leadership Focus on promoting industrial growth & harmony Promoting collaboration between government & private sector Strong policy framework Policies aligned to national priorities Fiscal and administrative incentives Routine review and revision of policies Jamshedpur - first India planned city Home to India s first integrated steel plant set-up in 1907 Long established presence of leading industry players - TATA Steel, Bokaro Steel & Usha Martin Endowed with vast natural resources Ranks 3 rd in mineral production & home to 40% mineral reserves of India Mineral based industries categorized as thrust areas by the State Energy Health Care Skill & Edu. Textiles Tourism Urban Dev. IT & ITES Agri, Food & Feed Page 2
Jharkhand A leading industrial state in Eastern India 1 Ranked 1 st in Labor reforms and inspection related compliances in India [1] Endowed with 40% of India s mineral wealth. Leading producer of steel, coal, mica and copper in India (1st rank in Iron ore, coal, Uranium, Mica, Asbestos) lowest in India & Long history of industrial harmony [2] 2 10.5% GSDP [4] growth rate - Second fastest in Eastern India [5] 3 Ranked 3rd in Ease of Doing Business in India [6] 4 Ranked 5 th Foreign Direct Investment (FDI) destination in India Page 3 [1] World Bank Report on Assessment of State Implementation of Business Reforms [2] Indian Labour Journal -2015 [3]SWAN: State wide Area Network; CSC: Common Service Centers [4] GSDP Gross State Domestic Product [5]CAGR during 2004-05 to 2014-15 [6] World Bank Report [7] Source: FDI Intelligence Survey
Investment Climate Business Enablers A SMS/E-Mail status notification Single Window Clearance B Common Helpline numbers for clearances Time Bound Grievance Handling Ease of Doing Business Online Applicatio n and Approval C D E Qualified and equipped relationship officers Common application for different incentives Online monitoring of disbursal of incentives Regular Consultation with Industry Single Window www.advantage.jharkhand.gov.in Helpline: 0651-6556666 F G H Grievance handling with timelines Interactive system for approvals Strong Policy Framework Page 4 Momentum Jharkhand
Strong Policy Framework 1 Jharkhand Single window Clearance Act 2015 6 Jharkhand Tourism Policy 2015 2 Jharkhand Industrial and Investment Promotion policy 2016 7 Jharkhand Export Policy 2015 3 Jharkhand Industrial Park Policy 2015 8 Jharkhand Procurement Policy 2015 4 Jharkhand Food Processing Industry Policy 2015 9 Jharkhand Communication Towers and related structure Policy 2015 5 Jharkhand Feed Processing Industry Policy 2015 10 Jharkhand Film Policy 2015 Page 5 Momentum Jharkhand
Key Policy Incentives Jharkhand Industrial and Investment Promotion Policy, 2016 and Industrial Park Policy 50% of the project cost with ceiling up to Rs 10 cr. for industrial park 50% of cost with ceiling of Rs 7 cr. incurred on infrastructure development for sector specific parks Financial Incentives -Comprehensive Project Investment Subsidy (CPIS) @ 20% fixed capital, incentives on VAT, Interest Subsidy, Pollution Control Equipment Subsidy Jharkhand Food & Feed Processing Industry Policy, 2015 Grant-in-aid from 35% to 45% of the project cost maximum - upto Rs 5 cr. Financial grant-in-aid and concessions and incentives for market development and export promotion Jharkhand Tourism Policy, 2015 30% incentives on capital investment, subsidy on capital power generation, interest subsidy, and incentives on airport operation (50% load factor in 1st Year) Policy also provides for Tax and Duty exemption for tourism centric projects Page 6
Ease of Doing Business- Revised Timeline Online grant of Factory Licence and its subsequent renewals can be issued for 1 to 10 years Professional Tax registration certificate issued within one working day of application VAT refund is now done in 60 days Water allocation/ connection approval now available within 30 days Timeline for Building Plan Approval is 60 days Approval of Online application for Tree Cutting and Transportation within 41 days Most Labour clearances within 50 days Disposal of Application Registering a Business under VAT Allotment of land by Government Environmental Approvals Registration under various Labour Acts Electricity Connection Time Limits under Facilitation Act (days) Earlier Revised 30 1 Un-defined 75 120 30-69 Un-defined 30 30 Days 13 Page 7
Competitive Cost of Doing Business Rajasthan Power Tariff: 1.55 Skilled Labour wage: 1.0 CPI: 25.47 Gujarat Power Tariff: 1.11 Skilled Labour wage: 1.40 CPI: 22.70 Madhya Pradesh Power Tariff: 1.24 Skilled Labour wage: 1.61 CPI: 26.09 Uttar Pradesh Power Tariff: 1.77 Skilled Labour wage: 1.53 CPI: 24.85 Jharkhand Power Tariff: 1.17 Skilled Labour wage: 1.39 CPI: 24.33 Chhattisgarh Power Tariff: 1.27 Skilled Labour wage: 1.19 CPI: 22.7 Maharashtra Power Tariff: 1.67 Skilled Labour wage: 1.47 CPI: 28.93 Karnataka Power Tariff: 1.5 Skilled Labour wage: 1.27 CPI: 25.90 Andhra Pradesh Power Tariff: 1.36 Skilled Labour wage: 1.91 CPI: 23.85 Page 8 Momentum Jharkhand * Power Tariff and Skilled Labour Wage have been shown as Cost Index with base as 1.CPI is Consumer Price Index of the capital city (For Andhra Pradesh, Vijayawada is considered), sourced from www.numbeo.com
Premier Institutions and Development Centres Abundant Skilled Human Resources Birla Institute of Technology, Mesra Indian School of Mines, Dhanbad Indian Institute of Management Central University of Jharkhand National Metallurgical Laboratory, Jamshedpur Steel Authority of India Limited, R&D centre Metallurgical & Engineering Consultants Limited Central Mine Planning and Design Institute TATA steel R&D Center National Institute of Technology XLRI, Jamshedpur National University of Study and Research in Law National Institute of Foundry and Forge Technology Education Technical Medical Management Educational Infrastructure Program Architecture & Engineering/ Technology No. of Institutions 16 MCA 4 ITI 20 ITC 157 Polytechnic 25 Medical 3 Pharmacy 2 Management 13 Hotel Management 2 Others B.Ed/M.Ed 116 Page 9 Momentum Jharkhand
JIADA Industrial Infrastructure Government owned - Industrial Development Authority No of industrial areas functioning: 28 Total Area: 6368 acres No. of working units: 2085 Responsibilities of Industrial Area Development Authorities Proactive in Industrial Development in command districts Continuous assistance to Developed/ under Developed/ Proposed Industrial area Single Point assistance to the entrepreneurs Assistance in providing basic infrastructure amenities, Bank finance etc. No Industrial Area Key industries 1 Palamu-Garhwa Mineral & chemical based industries 2 Lohardaga Aluminum industries, power plants 3 Koderma- Hazaribagh Mica based industries, power plant, glass, alloy steels, cement, refractory 4 Ranchi MSME, IT & ITES, food processing 5 Dhanbad- Bokaro 6 Singbhum Coal industrial area, steel, refractories, coal based power plants Iron & steel, auto components, cement, IT & ITES, horticulture, food processing, silk and textile 7 Ghatshila Copper and Forest based Industries 8 Deoghar Glass, steel, aromatic medicinal plant, coal based power plant, silk textile industries, food processing Page 10 Momentum Jharkhand
Major Industrial Corridors & Connectivity Infrastructure Hazaribag Deoghar Major Industrial Corridors 1. Amritsar-Delhi- Kolkata Industrial Corridor (181 Kms) 2. Ranchi-Patratu- Ramgarh Industrial Corridor (70 Kms) 3. Kodarma Behragora Industrial Corridor (285 Kms) Road connectivity: 15 National Highways (NH) pass through the state Major industrial activity is concentrated in an area South of NH-2, which connects Kolkata with Delhi via Jharkhand Industrial Corridor connecting Ranchi, Dhanbad and Jamshedpur forming a 6 lane Golden Triangle. Rail connectivity: Total 2182 kms rail network. Air connectivity: Domestic airport : Ranchi. Connecting to all metros and major cities GoJ already initiated up gradation of Ranchi airport to international status. Jamshedpur, Dumka, Dhanbad, Bokaro, Giridih, Deoghar, Hazaribagh, Daltonganj and Noamundi also have airstrips. Page 11 Momentum Jharkhand Source: Jharkhand Economic Survey 2015-16
Energy Sector in Jharkhand Amongst the lowest electricity tariff in the country Development Targets First State to sign UDAY MoU (5th Jan 16) Amongst first to unveil 24X7 Power for All roadmap Committed to Reform Power Sector Target of 100% village electrification by Dec 2016 and 100% Household electrification by Mar 2018 ~22,500MW of power generation projects under various stages of development Encouraging IPPs with an option to sell 25% of installed generation capacity to State. Investment Opportunities Power Generation Two upcoming 4,000MW UMPPs in Tilaiya and Deoghar 4,000MW NTPC and GoJ (JBVNL) Joint Venture projects at Patratu Future coal blocks/ coal linkage opportunities Power Transmission Transmission systems worth ~Rs.3,000 Cr. proposed to be developed under PPP route. EPC opportunities of worth ~Rs.9,000 Cr. Power Distribution Appointment of billing agencies for Urja Mitra Nearly 246 new PSS to be commissioned capacity from 3,818MVA to 7,412 MVA Planned investment of Rs.14,000 Cr. Note: 1)MW Mega Watt 2) IPP- Independent Power Producer 3)UMPPS- Ultra Mega Power Projects 4) JBVNL- Jharkhand Bijli Vitaran Nigam Ltd. 5)EPC- Engineering Procurement Contract 6)PSS- Power Supply Systems 7) MVA Mega Volt Amp Page 12 Momentum Jharkhand
Medico City, Itki, Ranchi Healthcare opportunities in Jharkhand Investment Opportunities 100 acres of land parcel, to house Medical College, Superspecialty Hospital, Nursing & Paramedical Institute, Diagnostic Center and Laboratories on PPP mode Fiscal Incentives for establishing Medical College 20, 25, 30 crores grant for Medical College with 50 seats, 100 seats, 150 seats respectively Many other Fiscal and Administrative Initiatives Successful PPP projects Other opportunities Setting up of Super speciality hospitals Dialysis Centre at all Medical Colleges & District Hospitals Central Bio Medical Waste Disposal Unit, Centralized Sterilization Drugs & Consumables : Supply and Setting up of Manufacturing Plants, as Jharkhand adopted Free Drug Policy in 2015 Schemes / Services Pathological Diagnostics Services Radiological Diagnostics Services 104 - Health Information Help Line 108 - Emergency Ambulance Services PPP Partner SRL & Medal Healthcare Healthmap Diagnostics Pvt. Ltd. Piramal Swasthya Research Institute Hyderabad, Ziqitza Health Care Ltd. Page 13 Momentum Jharkhand
Higher, Technical Education & Skill Development A Conducive Climate for Educational Institutions Indicator Jharkhand India Gross Enrollment Ratio (Lakhs) Higher Education 13.1 23.0 College per Lakh Population 8 26 Technical Education Engineering College density 1 per 20 Lakhs 1 per 7.7 Lakhs Polytechnic College Density 1 per 11 Lakhs 1 per 3 Lakhs Incentives for Setting up of Private university Allocation of 10 Acres of land for single disciplinary University and provision of endowment fund of Rs 2 cr. Allocation of 25 acres of land for Multidisciplinary University and provision of endowment Fund of Rs 4 cr. Operation and Maintenance of Polytechnic and Engineering Colleges on PPP mode have been notified. Higher Education Opening New Universities Setting up of Wi-Fi campuses and Digital library in all universities Setting up of Industry promoted Centre of Excellences Establishing campuses of Foreign universities/technical institutions Key Opportunities Technical Education Opening New Engineering / Polytechnic colleges Management of colleges on PPP mode Development of COEs and t-sdis for Skill Development Skill Development Forging partnership for Skill Development Centers in existing institutions Setting up of 50 Mega Skill Development Centres Setting up of Entrepreneurship Development Fund (EDF) Page 14 Momentum Jharkhand Note: 1) COE: Center for Excellence 2) t-sdi: Technical Skill Development Institutes
Urban Development Investment Potential Across Infrastructure Domains Smart City - Ranchi 341 acres Encumbrance free contiguous land parcel Transit Oriented Development (TOD) plan FSI up to 4 and 35% ground coverage along main corridor In close proximity from City centre, Hatia Railway Station, Birsa Munda Airport Metrorail corridor & transit oriented hub are proposed Investment Opportunities Other Opportunities Investment opportunities include: Convention Centre and Urban Tower in Ranchi Jharkhand Urban Planning & Management Institute, Ranchi Bus Terminal cum Commercial Complex in Dhanbd ISBT at Ranchi and Deoghar Market Complex in Jamshaedpur Haz House Roads and Flyovers across state Development of Septage & Drainage System Water Bodies Beautification Page 15 Note: 1) ISBT: Interstate Bus Terminal Momentum Jharkhand
IT & ITeS Scenario IT & ITeS initiatives 1 Innovation Lab 5 IT Parks 2 Venture Capital Fund 6 Software Parks 3 SPV for Network 7 EMC [1] 4 Setting up of IIIT New policies are being announced for development of IT/ITeS, BPO, ESDM & Start Ups Key MOUs signed with Oracle, HP, CISCO and now with Siemens, PTC, etc. Page 16 Note: 1) EMC: Electronic Manufacturing Cluster
Thank You
Policy Launch IT/ITeS Policy 2016 BPO Policy 2016 ESDM Policy 2016 Start Up Policy 2016 Automobile& Auto Component Policy 2016 Textile, Apparel and Footwear Policy 2016
IT/ITeS Policy 2016 Key Highlights 100% reimbursement of Stamp duty, registration fee and transfer duty Reimbursement of income tax, patent filing, provident fund and interest on loan Entrepreneurship Development Program VAT/GST reimbursement Technology acquisition support Permission for three shift operation FAR relaxation Page 19
BPO Policy 2016 Key Highlights Up to 100% reimbursement of net VAT/Service tax, electricity duty and lease rental Reimbursement of bandwidth/telephone charges, solar power, training and EPF Relaxation in late shifts for women Special consideration for units employing 500 or more Endeavour to outsource government services to local BPO Initial housing and travelling reimbursement Solar PV installation support Page 20
ESDM Policy 2016 Key Highlights 100% reimbursement of Stamp duty, registration fee and transfer duty Reimbursement of Capital investment Income tax Interest Patent filing Technology acquisition Creation of 3 ESDM hubs at Ranchi, Jamshedpur and Dhanbad Allotment of government land Test facility center Relaxation in late shifts for women Recruitment Transport & entry tax Provident Fund Product certification Employment rebate on cost of land Page 21
Startup Policy 2016 Key Highlights 100% reimbursement of Stamp duty, registration fee and transfer duty Reimbursement of VAT Patent filing Municipal duties Lease rental Bandwidth & electricity charges Establishment of Jharkhand Venture Capital Fund & Jharkhand Entrepreneurship Development Fund Local preference in tendering Central Incubation Lab (CIL) as hub in Hub & Spoke model for incubation Upgradation of State funded schools and higher education institutes Incubation centres in institutions Page 22
Automobile& Auto Component Policy 2016 Key Highlights Financial Assistance of 50% for fixed capital investments in building & common infrastructure to developers of auto clusters, vendor parks etc. Comprehensive Project Investment Subsidy for investments in Machinery, Plant & Equipment etc. Incentive to industries implementing state reservation policy& located in extremist infested blocks Net VAT concession on sale of finished goods for 10 years or 150% of capex spent in first seven years, whichever is earlier. Stamp Duty &Registration fee Exemption Page 23
Textile, Apparel and Footwear Policy 2016 (1/2) Key Highlights Industry Units One-time support up to Rs. 13,000 per employee for skill development Employment generation subsidy of Rs. 5,000 per month per worker for 7 years for capacity building of workers. Rs. 6,000 for SC/ ST/ Women Reimbursement of up to Rs. 1,000 per person per month towards expenditure on ESI and EPF for 5 years Land will be provided upfront or in 5 equal instalment in five years as per the rules applicable Capital Investment subsidy of 20% upto Rs. 50 Crore VAT subsidy of 100% for 7 years followed by 40% for next 3 years 100% reimbursement of stamp duty Page 24
Textile, Apparel and Footwear Policy 2016 (2/2) Key Highlights - Textile, Apparel and Footwear Parks Assistance of 50% of the project cost or Rs 40 crore, whichever is lower for Mega parks Assistance of 50% of the project cost or Rs 7 crore, whichever is lower for other Parks Additional capital subsidy up to 10% of the project cost or Rs 10 crore to Developer availing benefits under GoI India scheme on SITP Stamp Duty reimbursement of 50% Export Exhibition Centre at cost of Rs. 20 crore by JIADA The SPV allowed to allocate land for setting up & starting of operations of units before completion of park Page 25