Jharkhand the Mining Base of India
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JHARKHAND THE MINING BASE OF INDIA AUGUST 2015 For updated information, please visit www.ibef.org 1 JHARKHAND THE MINING BASE OF INDIA Executive Summary………………………3 Advantage State………………………….. 5 Jharkhand – An Introduction……………..7 State Budget……………………………..17 Infrastructure Status...............................18 Business Opportunities………….………35 Doing Business in Jharkhand ...............52 State Acts & Policies .............................60 AUGUST 2015 For updated information, please visit www.ibef.org 2 JHARKHAND THE MINING BASE OF INDIA EXECUTIVE SUMMARY … (1/2) Jharkhand is one of the richest mineral zones in the world. The state boasts of 40 per cent Mineral-rich state • and 29 per cent of India’s mineral and coal reserves, respectively. With 26 per cent of the total iron ore (hematite) reserves, Jharkhand ranks second among Second largest iron ore • the states. During 2014-15, Jharkhand accounted for 16.8 per cent of the total iron ore deposits production in the country. Leading producer of • Jharkhand accounts for 14.3 per cent of the total steel produced in the country. During minerals in India 2014-15, the state produced 11.7 million tonnes of steel. The government targets to increase steel production to 25 million tonnes by 2017-18. Sole producer of coking • Jharkhand is the only state in India to produce coking coal, uranium and pyrite. The state coal, uranium and pyrite is also a leading producer of coal, mica, kyanite and copper. Source: Department of Industry, Government of Jharkhand, Ministry of Mines AUGUST 2015 For updated information, please visit www.ibef.org 3 JHARKHAND THE MINING BASE OF INDIA EXECUTIVE SUMMARY … (2/2) • Jharkhand has some of the country’s premier engineering colleges, including Birla Institute Renowned educational of Technology (Ranchi), National Institute of Technology (Jamshedpur) and Indian School institutes of Mines (Dhanbad), and business colleges such as Xavier Labor Relations Institute (Jamshedpur) and Indian Institute of Management (Ranchi). Jharkhand is the largest producer of tussar (a non-mulberry silk) in India, with 76.4 per Largest producer of • cent share in the total output. The state produced 1,890 tonnes of tropical tussar silk tussar silk during 2014-15. Strong growth in tourist • Tourist arrivals in the state have increased from 20.45 million in 2012-13 to 33.58 million in arrival 2014-15. Source: Department of Industry, Government of Jharkhand, Ministry of Mines AUGUST 2015 For updated information, please visit www.ibef.org 4 JHARKHAND THE MINING BASE OF INDIA ADVANTAGE JHARKHAND ExtensiveGrowing mineral demand reserves Policy and fiscal incentives 2017-18 2014-15 • Jharkhand has around 40 per cent • Jharkhand offers a wide range of Target of the country’s mineral wealth. fiscal and policy incentives to Steel • The state is one of the largest industries under the Industrial Steel producers of coal, mica and Policy 2012. production: production: copper in India. 11.7 million • The state also has policies for IT 25 million Due to its large mineral reserves, and SEZs offering sector-specific • tonnes tonnes mining and mineral extraction are incentives. the major industries in the state. Advantage Jharkhand Investment potential Location advantage • The GSDP of the state grew at a • The state’s industries enjoy a CAGR of 10.5 per cent between unique location-specific advantage 2004-05 and 2014-15. as it is close to the vast market of eastern India. • The state provides investment opportunities in sectors such as • It is closer to the ports of Kolkata, mining and metals, power, Haldia and Paradip and has easy infrastructure, manufacturing and access to raw materials. food processing. AUGUST 2015 For updated information, please visit www.ibef.org 5 JHARKHAND THE MINING BASE OF INDIA JHARKHAND VISION - 2022 Healthcare • Focus on awareness and preventive measures. • Targeted campaigns against common Education epidemics. Utilities • Primary education. • Government backed health insurance. • Water and sanitation. • Vocational training. • Private participation to fill talent gaps. • Telecommunication. • Promoting equity & social protection. • Electricity. • Addressing demand side issues. • Security. • Roads. Improved living E-governance standards Forestry • Rationalising departments & schemes • To utilise the enormous potential of • Curbing premature transfers. forests & increase the output by 20 • Improving performance & career per cent. management. Vision 2022 • Strengthening the presence and Power quality of block administration. Efficient Sustainable • Increasing generation to 10,000 MU and bring AT&C losses to fewer & transparent economic than 15 per cent. governance development Law & order Mining and minerals • Revamping the law & order structure. • Mining development and control. • Community support. • Social and environmental • Counter insurgency program. compliance. Industry interface Agro development • Establishment of a single window clearance • To increase the agricultural productivity system for investors in the state. to 2,000 kilograms per hectare. Source: Confederation of Indian Industry AUGUST 2015 For updated information, please visit www.ibef.org 6 JHARKHAND THE MINING BASE OF INDIA JHARKHAND FACT FILE Jamshedpur, Dhanbad, Bokaro, Deoghar and Hazaribagh are some of the major cities and industrial areas in the state. Jharkhand is rich in mineral resources such as coal (29% of India’s reserves), iron ore (26% of India’s reserves), copper ore (18% of India’s reserves), uranium, mica, bauxite, granite, limestone, silver, graphite, magnetite and dolomite. Parameters Jharkhand Capital Ranchi Jharkhand is located in the eastern part of India. The Geographical area (sq km) 79,714 state shares its borders with West Bengal in the Administrative districts (No) 24 east, Uttar Pradesh and Chhattisgarh in the west, Bihar in the north and Odisha in the south. Population density (persons per sq km) 414 Commonly spoken languages of the state are Hindi Total population (million) 33.0 and Santhali; Urdu and Bengali are also prevalent. Male population (million) 16.9 English is the primary medium of education. Female population (million) 16.1 Forests and woodlands occupy more than 29 per cent of the area under the state. Sex ratio (females per 1,000 males) 948 Literacy rate (%) 66.4 Source: Government of Jharkhand, Indian Bureau of Mines, Ministry of Mines, Census 2011 AUGUST 2015 For updated information, please visit www.ibef.org 7 JHARKHAND THE MINING BASE OF INDIA JHARKHAND IN FIGURES … (1/2) Parameter Jharkhand All states Source Economy 2014-15 2014-15 Directorate of Economics & Statistics of 1.78 100.0 GSDP as a percentage of all states’ GSDP Jharkhand, Central Statistics Office Directorate of Economics & Statistics of Average GSDP growth rate (%) 26.34 7.3 Jharkhand, Central Statistics Office Directorate of Economics & Statistics of Per capita GSDP (US$) 1,111.2 1,389.61 Jharkhand, Central Statistics Office Physical Infrastructure Installed power capacity (MW) 2,625.9* 272,502.95 Central Electricity Authority, as of May 2015 Telecom Regulatory Authority of India Wireless subscribers (No) 71,619,146^** 973,347,094 April 2015 Telecom Regulatory Authority of India Broadband subscribers (No) 2,300,000^*** 100,760,000 April 2015 National Highway length (km) 2,391 92,851.07 National Highway Authority of India April-2015 Airports (No) 1 132 Airports Authority of India ^Including Bihar, *As of June 2015, **As of May 2015, ***As of March 2014 AUGUST 2015 For updated information, please visit www.ibef.org 8 JHARKHAND THE MINING BASE OF INDIA JHARKHAND IN FIGURES … (2/2) Parameter Jharkhand All states Source Social Indicators Literacy rate (%) 66.4 73.0 Census, 2011 SRS Bulletin (www.censusindia.gov.in), Birth rate (per 1,000 population) 25.0 21.4 September 2014 Investments Department of Industrial Policy & Promotion, FDI equity inflows (US$ billion)* 0.045* 248.5 April 2000 to March 2015 Outstanding investments (US$ billion) 117.7 2,414.2 CMIE (2013-14) Industrial Infrastructure PPP projects (No) 11 1,409 DEA, Ministry of Finance, Government of India Notified as of March 2015, Ministry of SEZs (No) 1 347 Commerce & Industry, Department of Commerce PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System September 2014, *Includes Bihar AUGUST 2015 For updated information, please visit www.ibef.org 9 JHARKHAND THE MINING BASE OF INDIA ECONOMIC SNAPSHOT – GSDP At current prices, the gross state domestic product (GSDP) GSDP at current prices (in US$ billion) of Jharkhand for 2014-15 stood at US$ 36.21 billion. 36.21 CAGR Between 2004-05 and 2014-15, the GSDP of the state grew 10.5% 27.93 28.29 27.92 28.66 at a CAGR of 10.5 per cent. 21.22 20.86 19.12 13.29 13.75 14.78 Source: Directorate of Economics & Statistics of Jharkhand, Central Statistics Office AUGUST 2015 For updated information, please visit www.ibef.org 10 JHARKHAND THE MINING BASE OF INDIA ECONOMIC SNAPSHOT – NSDP The net state domestic product (NSDP) of Jharkhand for NSDP at current prices (in US$ billion) 2014-15 stood at US$ 31.3 billion. 31.30 CAGR Between 2004-05 and 2014-15, the NSDP of the state grew 10.2% 23.84 24.19 23.83 24.94 at a CAGR of 10.2 per cent. 18.49 18.37 16.61 11.80 12.05 12.92 Source: Directorate of Economics & Statistics of Jharkhand, Central Statistics Office AUGUST 2015 For updated information, please visit www.ibef.org 11 JHARKHAND THE MINING BASE OF INDIA ECONOMIC SNAPSHOT – PER CAPITA GSDP Jharkhand’s per capita GSDP grew to US$ 1,111.2 in 2014- GSDP per capita at current prices (in US$) 15 compared with US$ 463.8 in 2004-05. 1,111.2 CAGR per capita GSDP increased at a CAGR of 9.1 Jharkhand’s 9.1% per cent between 2004-05 and 2014-15. 892.6 891.6 868.3 879.5 695.2 687.6 628.3 463.8 472.4 499.9 Source: Directorate of Economics & Statistics of Jharkhand, Central Statistics Office AUGUST 2015 For updated information, please visit www.ibef.org 12 JHARKHAND THE MINING BASE OF INDIA ECONOMIC SNAPSHOT – PER CAPITA NSDP Jharkhand’s per capita NSDP stood at US$ 960.5 in 2014- NSDP per capita at current prices (in US$) 15 compared with US$ 411.8 in 2004-05.