JHARKHAND THE MINING BASE OF INDIA
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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
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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
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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
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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.
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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$) 1,111.2 1,389.61 Jharkhand, Central Statistics Office Physical Infrastructure
Installed power capacity (MW) 2,625.9* 272,502.95 Central Electricity Authority, as of May 2015
Telecom Regulatory Authority of India Wireless subscribers (No) 71,619,146^** 973,347,094 April 2015 Telecom Regulatory Authority of India Broadband subscribers (No) 2,300,000^*** 100,760,000 April 2015
National Highway length (km) 2,391 92,851.07 National Highway Authority of India April-2015
Airports (No) 1 132 Airports Authority of India
^Including Bihar, *As of June 2015, **As of May 2015, ***As of March 2014
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JHARKHAND IN FIGURES … (2/2)
Parameter Jharkhand All states Source
Social Indicators
Literacy rate (%) 66.4 73.0 Census, 2011
SRS Bulletin (www.censusindia.gov.in), Birth rate (per 1,000 population) 25.0 21.4 September 2014 Investments
Department of Industrial Policy & Promotion, FDI equity inflows (US$ 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
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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. CAGR 36.21 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
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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
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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
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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.
960.5 Jharkhand’s per capita NSDP grew at a CAGR of 8.8 per CAGR 8.8% cent between 2004-05 and 2014-15. 761.9 762.5 740.9 765.3 616.0 595.3 545.5 411.8 413.9 437.0
Source: Directorate of Economics & Statistics of Jharkhand, Central Statistics Office
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ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP
During 2014-15, the tertiary sector contributed 42 per cent GSDP composition by sector to the state’s GSDP at current prices. It was followed by the secondary sector (32.2 per cent) and the primary sector (25.8 per cent). CAGR 32.9% 13.3% 42.0% With a CAGR of 13.3 per cent, the tertiary sector has grown the fastest among the three sectors from 2004-05 to 2014- 15. The growth has been driven by trade, hotels, real estate, 41.2% 7.9% finance, insurance, transport, communications and other 32.2% services.
25.9% 10.5% 25.8% Between 2004-05 and 2014-15, the primary and secondary sectors expanded at a CAGR of 10.5 per cent and 7.9 per cent, respectively. 20042004-05-05 2014 2013-14-15 Primary Sector Secondary Sector Tertiary Sector
Source: Directorate of Economics & Statistics of Jharkhand, Central Statistics Office
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ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION
About 80% of the rural population of the state depends on Annual production in agriculture. Rice is the major food crop of the state, covering Crop 80 per cent of the cropped area. In 2014-15, the total rice 2014-15 (‘000 tonnes) production of the state was 2,910.1 thousand tonnes. Rice 2,910.1
In 2014-15, Jharkhand’s total production of vegetables and Potato 653.1 fruits was 5.18 million metric tonnes. Onion 320.3
Tomato 252.4 The state’s soil and climatic conditions also support cultivation of ornamental plants, mushrooms, spices and tea.
In 2013-14, the total production of fruits in Jharkhand was 890,035 tonnes and production of vegetables stood at 4.24 million tonnes.
The pulses produced in the state mainly include arhar, urad, moong, kulthi, bengal gram, masur and peas.
At 0.79 tonnes/hectare, productivity of pulses in Jharkhand exceeds the national average of 0.75 tonnes/hectare.
Source: Ministry of Agriculture
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ECONOMIC SNAPSHOT – INVESTMENTS
According to the Department of Industrial Policy & FDI equity inflows, 2011-12 to 2014-15 (US$ million) Promotion (DIPP), the cumulative FDI inflows from April 2000 to March 2015, amounted to US$ 50 million.
Real estate, mining and construction are among the major 24 contributors to economic growth of the state.
11 8
1
2011-12 2012-13 2013-14 2014-15
Source: Department of Industrial Policy & Promotion
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BUDGET 2015-16
Budget expenditure for 2015-16 is Sectors Budget* (US $ billion) Percentage of total estimated to be US$ 9.21 billion. Education 1.22 13.30 In the 2015-16 budget the revenue Roads & buildings 16.31 expenditure is US$ 7.19 billion and 1.50 capital expenditure is US$ 2.02 Health including drinking water 0.93 10.07 billion. Rural development 0.92 10.02
For 2015-16, the fiscal deficit is Welfare & social welfare 0.93 10.14 estimated to be US$ 0.86 billion Industry & transport 0.13 1.36 (2.28% of GSDP). Urban development & 0.82 8.90 Panchayati Raj Labour 0.40 4.32 Irrigation & Water Resources 0.58 6.34
Agriculture & allied activities 0.33 3.59
Energy 0.43 4.72
Food & civil supply 0.36 3.86
Planning & development 0.33 3.55
Others 0.32 3.52
Total 9.21 100
Source: Budget at a Glance 2015-16, *All figures converted at INR 60.28/US$
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PHYSICAL INFRASTRUCTURE – ROADS … (1/2)
In January 2015, under the Centre’s Road Requirement Plans (RRP), Jharkhand would receive additional road and bridge infrastructure worth Rs 640 crore, including 11 roads. This would help the government in dealing with Naxalism by linking remote areas which are used by rebels as hideouts.
In early 2014, the Union Rural Development Ministry approved 483 new road projects covering 1,562.85 km length under the Pradhan Mantri Gram Sadak Yojna.
Source: Maps of India
There are 15 National Highways (NH) running through Road type Road length (km) Jharkhand: NH-2, NH-6, NH-23, NH-31, NH-32, NH-33, NH- 75, NH-78, NH-80, NH-98, NH-99, NH-100, NH-114A, NH- National highways 2,391 133, NH-220, NH-333 and NH-343, measuring 2,374 km. The total length of state highways* is around 6,880 km. State highways 6,877 Rural roads 24,300 The state’s industrial activity is primarily concentrated in an area south of NH-2, which connects Kolkata with Delhi via Jharkhand. Source: Ministry of Road Transport & Highways
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PHYSICAL INFRASTRUCTURE – ROADS … (2/2)
In 2014-15, the state government of Jharkhand announced plans to construct 890 km of roads and 30 bridges. As of March 2015, 700 km of road and 15 bridges has been completed.
Under the ADB agreement, the state government has undertaken a two-lane road project, stretching 311 km between Govindpur (near Dhanbad) and Sahebganj. As of May 2015, around 80 per cent of the physical work was completed.
The Road Ministry of India has announced plans to expand highways in Jharkhand under the PPP model with an estimated investment of US$ 890 million.
Major highways undertaken in Jharkhand
Name of the project NH No. Funded by Length (km) Cost (US$ billion)
Six-laning of Barwa Adda-Panagarh 2 BOT 122.88 0.28 Six-Laning of Aurangabad-Barwa 2 BOT 221.346 0.39 Adda Two lane with paved shoulders of 23 NHAI 78.19 0.06 Chas-Ramgarh 4-Laning of Mahulia to Behragora to 33 & 6 Not available 127 0.16 Kharagpur
Source: Ministry Of Road Transport And Highways, Government of Jharkhand, ADB: Asian Development Bank
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PHYSICAL INFRASTRUCTURE – RAILWAYS The total length of railway lines in Jharkhand is 2,181.93 km. The state has extensive goods-handling facilities available at Ranchi, Bokaro, Dhanbad and Jamshedpur stations as well as ore-loading facilities at Kiriburu, Lohardaga and all Central Coalfields Ltd (CCL) coal mines.
The dedicated freight corridor (Eastern Corridor Extension to Kolkata under the Dedicated Freight Corridor Corporation of India) will pass through the state and is expected to benefit the industry significantly. The Eastern Freight Corridor is expected to be completed by 2018.
The state has proposed investments of up to US$ 195.7 million for developing new rail links under the 12th Five Year Plan (2012-17). During 2013-14, nine new tracks, one gauge conversion, twelve doubling and three electrification projects were taken up by the Indian Railways in the Source: Maps of India state. The project, estimated to cost US$ 84.5 million, is expected to augment the railway network by 1,507 kilometers.
Railway Projects in Jharkhand Cost 2015-16 Name of the project Year Length (km) (US$ billion) 3rd line between Dhanbad-Sonnagar 2015-16 429 0.02 Danea-Ranchi Road 2013-14 25.2 0.01
Doubling between Bondamunda-Ranchi 2015-16 166 Not available
Source: Ministry of Railways
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PHYSICAL INFRASTRUCTURE – AIRPORTS
A domestic airport is located in the state capital, Ranchi. Direct links are available from Ranchi to prominent cities such as Delhi, Patna, Kolkata and Mumbai.
Jamshedpur, Dumka, Dhanbad, Bokaro, Giridih, Deoghar, Hazaribagh, Daltonganj and Noamundi also have airstrips. Chartered flights are available between the steel city of Jamshedpur and Kolkata. Cargo handled by the Ranchi airport has increased from 2,491 tonnes in 2013-14 to 3,496 tonnes in 2014-15. During the same period, aircraft movement has increased from 6,587 in 2013-14 to 7,642 in 2014-15.
Department of Civil Aviation of the state government plans to acquire land to develop 12 airstrips in the Chatra, Simdega, Lohardaga, Godda, Pakur, Latehar, Sahebganj, Jamtara, Saraikela, Garhwa, Koderma and Khunti districts. Domestic airport
Construction of technical block and control tower is going on Air strip (Charter Flight Service) at Ranchi airport in Jharkhand. This development work is Source: Maps of India 73% completed as of March 2015. Passenger traffic in Ranchi airport has increased from 517,006 in 2013-14 to 653,832 in 2014-15.
Source: Airports Authority of India
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PHYSICAL INFRASTRUCTURE – POWER ... (1/2)
As on June 2015, Jharkhand had a total installed power Installed power capacity (MW) generation capacity of 2,625.91 MW, which comprised 1,324.05 MW under state utilities, 916.00 MW under the private sector and 385.86 MW under central utilities. 3,037.8 2,579.8 2,579.8 2,625.9 2,269.9 Backed by large coal reserves in the state, total installed 1,983.8 power generation capacity in the state of coal based thermal power is 2,404.93 MW.
Besides, the state has total 200.9 MW of installed hydropower generation capacity and 20.05 MW from renewable sources. 2010 2011 2012 2013 2014 2015 As of March 2015, the state’s average per capita power consumption was at around 650 kWh.
Source: Central Electricity Authority
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PHYSICAL INFRASTRUCTURE – POWER ... (2/2)
• In 2009, the central government handed over the construction of the 3,960 MW Ultra- Mega Power Project (UMPP) at Tilaiya to the Anil Dhirubhai Ambani Group after Ultra Mega Power completing the competitive bidding process. The project, which is estimated to cost US$ 5 Projects (UMPP) billion, is currently in the construction phase and is expected to start generating power by the end of 2015.
• In February 2014, NTPC initiated North Karanpura project. The project would make use of efficient environment friendly technology in order to generate power. For the first time, National Thermal Power NTPC would make use of air cooled condensers to meet the water requirement of the Corporation Project power plants. • Currently, NTPC is supplying 298 MW power to Jharkhand. This project is expected to supply 230 MW of power. Additionally, the Ministry of Power has allotted 354 MW power to Jharkhand from new projects of NTPC that are under construction.
• In August 2014, the Ranchi-Dharamjaygarh-Sipat 765kv inter-regional power transmission Ranchi-Dharamjaygarh- line in Jharkhand commenced. The 392 km line would serve as the first inter-regional link between eastern region and western region. Central transmission utility Power Grid Sipat power Corporation has implemented the transmission line for a total cost of US$ 265.43 million. transmission line • The main purpose of this link would be transferring excess power from Western to Northern Region via Eastern Region. Also, excess power from the eastern region could be transferred from this link to the Western Region for forward transfer to northern or southern region. • Meanwhile, two new sub-stations in Ranchi and Dharamjaygarh (in Chhattisgarh) were also completed.
Source: Power Finance Corporation Ltd, News articles AUGUST 2015 For updated information, please visit www.ibef.org 23 JHARKHAND THE MINING BASE OF INDIA
PHYSICAL INFRASTRUCTURE – TELECOM
According to estimates from Telecom Regulatory Authority of India (TRAI), Jharkhand had 71.6 million* wireless Telecom infrastructure (May 2015) connections and 347,309* wire-line subscribers as of May 2015. Wireless connections 71,619,146*
Wire-line connections 347,309* As of March 2014, the state had 441 telephone exchanges. Broadband subscribers 2,300,000*^ About 97.9 per cent of the villages in the state had direct Telephone exchanges access to telecom facilities as of March 2015. 441^ Post offices 3,124 As of March 2014, the state had 2,300,000 broadband subscribers. Major telecom companies in Jharkhand The state had 3,124 post offices as of May 2015. Bharat Sanchar Nigam Limited (BSNL) Vodafone Essar Reliance Communications Idea Cellular Tata Teleservices Bharti Airtel Aircel Limited
Source: Telecom Regulatory Authority of India, India Post *Including Bihar, ^As of March 2014
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DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE
Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), five projects costing US$ 173.2 million have been sanctioned for urban centres such as Ranchi, Dhanbad and Jamshedpur. The key areas of development are solid waste management systems and water supply.
Department of Urban Development of the state government has schemes for development of urban transport, water supply, sewerage, solid waste management and other civic amenities. The state has proposed an outlay of US$ 1.2 billion for urban development in its 12th Five Year Plan (2012–17). Out of this investment about US$ 0.8 billion was released till March 2015.
City Water supply Solid waste management system
• As per City Development Plant (CDP) of Ranchi, the • Solid-waste generation is expected to increase to demand for water is expected to increase to 751 million 602 tonnes per day (TPD) in 2026. Ranchi litres per day (MLD) by 2036. • Around US$ 25.11 million of investment has been • Around US$ 64.85 million of investment has been envisaged up to March 2015. envisaged up to March 2015.
• As per CDP of Dhanbad, the demand for water is • Solid-waste generation is expected to increase to expected to increase to 413 MLD by 2026. 776 TPD in 2026. Dhanbad • Around US$ 89.74 million of investment has been • Around US$ 14.44 million of investment has been envisaged up to March 2015. envisaged up to March 2015.
Source: JNNURM, Ministry of Urban Development
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DEVELOPMENT PROJECTS: KEY PUBLIC–PRIVATE PARTNERSHIP (PPP) PROJECTS
Project cost Project name Sector Status Project authority (US$ million)
Birsa Bus Stand cum Under Ranchi Regional Development Commercial complex at Transport 12.61 construction Authority Ranchi
Common Effluent Treatment Under Water sanitation Adityapur Auto Cluster Ltd. -- (Adityapur) Project construction
Hazaribagh-Ranchi NH-33 Transport Completed National Highways Authority of India 144.19 Road Project
Ratu Road Commercial Transport Operation Ranchi Municipal Corporation -- Complex
Road Upgradation (Ranchi- Under Rargaon-Jamshedpur) (NH- Transport National Highways Authority of India 245.63 construction 33) Project
Roadways between Barhi – Under National Highways Authority of India Transport 66.03 Hazaribagh construction (NHAI)
Second Adityapur Toll Bridge Under Transport Department of Industries, Jharkhand 9.12 over River Kharkali construction
Source: Ministry of Finance, Government of India
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JHARKHAND PROCUREMENT POLICY
Objectives
• To promote and develop micro and small enterprises (MSEs).
• To encourage competitiveness amongst local MSEs and other industrial units.
• To facilitate the purchases from MSEs by government departments and institutions including aided agencies.
• To ensure procurement of minimum 20 per cent of total annual purchases of products and 15 per cent of services.
• To procure maximum goods and services without compromising quality, competitiveness and cost effectiveness.
Highlights of the policy
Jharkhand procurement policy 2014 shall be applicable to manufacturing units located within the state of Jharkhand, the head/corporate office of the unit is within territorial jurisdiction of Jharkhand, and the units are registered under Jharkhand VAT 2005 act/ CST act.
The rate of various items is fixed via Rate Contract System, which is revised on an annual basis.
The purchases can be made from an exclusive list.
Goods and services that do not fall under the exclusive list or Rate Contract System can be purchased using Open Tender System.
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SOCIAL INFRASTRUCTURE – EDUCATION
Jharkhand has a literacy rate of 66.4 per cent according to the data of Education infrastructure in Jharkhand (2015) Census 2011; the male literacy rate is 76.8 per cent and the female literacy rate is 55.4 per cent. In 2015, it is expected that 583 additional secondary Universities 7 schools will be opened in Jharkhand. Medical colleges 3
Since March 2009, the Central University of Jharkhand has been offering Dental colleges 3 courses in Mass Communication, Business Administration, Mathematics, Community colleges 3 and English, among others. Engineering colleges (Government + 45 Private) Birla Institute of Technology (Ranchi), National Institute of Technology (Jamshedpur) and Indian School of Mines (Dhanbad) are among the well- Literacy rates (%) known engineering colleges in the country. The Xavier Labour Relations Institute in Jamshedpur is one of the premier business schools in India. Literacy rate 66.4
Male literacy 76.8 The state has five reputed research institutes, which are involved in research in the fields of iron and steel, mining and metallurgy. The state Female literacy 55.4 government has earmarked an investment of US$ 4.8 billion under the 12th Five Year Plan to strengthen the education infrastructure.
Jharkhand - upgradation of primary to upper primary and upper primary to secondary schools, up to 2014-15 Primary to upper primary school Upper primary to secondary schools 10,288 1,002
Source: Ministry of human resource development
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SOCIAL INFRASTRUCTURE – HEALTH … (1/2)
Jharkhand has 330 primary health centres (PHCs), 3,958 sub-centres, 14 district-level hospitals, 10 sub-division Health indicators of Jharkhand (2014-15) hospitals, 32 referral hospitals, 188 community health Birth rate* 25.0 centres (CHCs) and six medical colleges. Death rate* 6.9 The broad objectives of the state’s Department of Health Infant mortality rate** 39 include enhancing maternal and child healthcare, stabilising population growth and improving nutritional status.
The state stresses upon empowerment of women and Health indicators of Jharkhand inclusion of non-profit organisations to achieve its District hospitals 14 objectives. Referral hospitals 32 The Jharkhand government has drafted a policy for Sub-divisional hospitals 10 establishment of super-speciality hospitals, medical and nursing colleges and paramedical institutes. Primary health centres 330
Community health centres 188 The state government has built a 500-bed hospital at Ranchi. In 2014-15, the state government has built 208 sub Sub-centres 3,958 centres, 39 primary health centres and four community health centres. In the 2015-16 budget, the state government has announced plans to built five community health centres, Source: Sample Registration System (SRS) Bulletin 2014 25 primary health centres and 50 sub centres. *Per thousand persons, **Per thousand live births
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SOCIAL INFRASTRUCTURE – HEALTH … (2/2)
Ranchi Sadar Hospital PPP Project, Jharkhand
• 500-bed hospital at Ranchi to become the first healthcare institution in India to be operated under PPP model.
• The government has signed MoU with International Finance Corporation (IFC) to provide advisory services for project.
• IFC will help the state government in development and operation of the hospital campus under the PPP model.
• The state plans to set up a 100-seat medical college in the hospital campus.
• Sadar Hospital Project is estimated to have cost US$ 526,840 and is awaiting inauguration.
• The state government plans to operate two other hospital as well as a few district hospitals under the PPP model.
Source: International Finance Corporation, MoU: Memorandum of Understanding, PPP: Public Private Partnership AUGUST 2015 For updated information, please visit www.ibef.org 30 JHARKHAND THE MINING BASE OF INDIA
CULTURAL INFRASTRUCTURE
The culture of Jharkhand encompasses its languages, dance, drama, music and painting and is characterised by the distinct tribal or folk forms. The state has around 30 indigenous tribes including nine primitive ones. The state government has established Chhau Dance (a form of folk dance) Centre at Saraikela and Bharatiya Nritya Kala Mandir at Ranchi and Dumka. Jharkhand has some well-known historic and pre-historic sites such as Maluti Temple, Palamu Fort, Tanginath Temple and Haradih Temple, which are being conserved by the Archaeological Survey of India. There are two museums in the state, one each at Ranchi and Dumka.
There are six sports training centres – three for hockey, two for athletics and one for football – located at Ranchi, Gumla and Latehar. Ranchi also has an 18-hole golf course. Tourist arrival in the state has increased from 204.53 lakh in 2012-13 to 335.82 lakh in 2014-15.
PPP Projects Project cost Project name Sector Status Project authority (US$ million)
City Centre at Social and commercial Adityapur Industrial Area Others 24.88 Adityapur infrastructure Development Authority (AIADA)
Jaipal Singh Stadium Social and commercial Sports & Commercial Others Ranchi Municipal Corporation -- infrastructure Complex
National Games Department of Arts, Culture, Social and commercial Under Housing Complex at Sports & Youth Affairs, 41.47 infrastructure construction Ranchi Jharkhand
Source: infrastructureindia.gov.in AUGUST 2015 For updated information, please visit www.ibef.org 31 JHARKHAND THE MINING BASE OF INDIA
INDUSTRIAL INFRASTRUCTURE … (1/2)
Jamshedpur is the original industrial town in the state where Industrial areas the Tata Group set up their first steel plant, more than a century ago. It is a privately run township and currently has Palamu-Garhwa Industrial Dhanbad-Bokaro several types of industrial units including automotive, Area Industrial Area metals, chemicals, electrical and electronic goods. Lohardaga Industrial Area Singbhum Industrial Area
Koderma-Hazaribagh Several other industrial areas have been developed in the Ghatshila Industrial Area state based on the location of mineral reserves and related Industrial Area down-stream industries. An SEZ has been notified at Deoghar-Jasidih Industrial Ranchi Industrial Area Adityapur (adjoining Jamshedpur) for the automotive Area industry. A private sector consortium has been selected for developing the SEZ. Growth areas Appreciating the requirement of advanced tool room for Mega-growth areas Barhi, Hazaribagh manufacturing industries, an Indo-Danish tool room and training centre has been set up in Jamshedpur. The state Food Park (Ranchi) Mini-growth areas government plans to set up and promote three-tier growth Apparel Park (Chaibasa) centres at the mega, mini and micro levels. At the block-level to boost Micro-growth centres village-based industries
PPP projects Project name Sector Status Project authority
Power Finance Tilaya Ultra Mega Power Project Energy Under construction Corporation Ltd
AUGUST 2015 Source: infrastructureindia.gov.in For updated information, please visit www.ibef.org 32 JHARKHAND THE MINING BASE OF INDIA
INDUSTRIAL INFRASTRUCTURE … (2/2)
The state government has identified 56 clusters including refractory cluster at Dhanbad; mini cement cluster at Ramgarh; bell metal cluster at Bishnugarh, Hazaribagh and Khunti; steel processing cluster at Giridih; hard coke cluster at Dhanbad; and forging and hand tool manufacturing cluster at Bhendra, Bokaro.
Jharkhand has three industrial area development authorities with headquarters at Adityapur, Bokaro and Ranchi. Another such development authority is being formed at Santhal Pargana.
These authorities are responsible for acquisition of land and development of infrastructure facilities such as roads, drainage, parks, water supply and public utilities within their jurisdiction.
Parameters Adityapur Industrial Area Development Ranchi Industrial Area Development Authority (AIADA) Authority (RIADA)
Controlled area (acres) 33,970 1,524
Allotted plots (No) 1,365 682
Units established (No) 893 540
Engineering (machining fabrication), mines and Heavy and light engineering, ferro-casting, mineral-based units, chemicals, electrical and chemicals, plastic and rubber, forging and mineral- Major industries electronics, metallurgy (foundry and forge), based units. casting and rolling, plastics and rubber.
Source: www.aiada.in, www.riada.in
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AMRUT AND SMART CITIES
The proposed smart cities in Jharkhand include Dhanbad, Jamshedpur and Ranchi.
Area Literacy Cities Population (sq km) rate Dhanbad
Dhanbad 2,684,487 2,040 74.52% Ranchi
Jamshedpur 629,659 149.22 87.50%
Ranchi 2,914,253 5,097 76.06% Jamshedpur
Source: TechSci Research
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KEY INDUSTRIES … (1/2)
The natural resources, policy incentives and location- specific advantages of Jharkhand support investments in Key industries in Jharkhand sectors such as mining and metal extraction, engineering, Mining and mineral extraction iron and steel, and chemicals. • • Engineering
• Iron and steel As Jharkhand has around 40.0 per cent of the country’s mineral wealth, its extensive mineral resources make • Chemicals mining, metals and related sectors especially lucrative for • Handloom investments. • Food and beverages • Plastics and rubber Forests account for 29 per cent of the land area in • Printing and packaging Jharkhand with thriving bio-diversity, fertile land and • Tourism moderate climate. • Automotive • Cement Almost 75.0 per cent of the population in Jharkhand depends on agriculture or agriculture related occupations. Major minerals of Jharkhand The state produces a variety of cereals, crops and vegetables. • Coal • Iron ore • Copper • Aluminium • Graphite • Mica • Manganese • Uranium
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KEY INDUSTRIES … (2/2)
Jharkhand Industrial Policy, 2012, has been formulated with the objective to convert Jharkhand into a favoured destination for investors and promote sustainable industrial growth in the state. Under its industrial policy, the state government has planned to promote cluster development of industries under existing schemes of the central government.
As of 2014-15, the state accounted for 38 mega industries, 123 large & medium industries and 43,517 micro and small industries. Mega industries are providing job opportunities to 5,390 people, whereas large, medium and micro industries are generating job opportunities for 10,094 and 168,740 people respectively.
Between 2012-13 and 2014-15, about 5,855 industrial units have been established in the state which have created 25,370 employment opportunities.
Status of industrial areas
No. of industrial areas functioning Sector Land available in acres No. of working units Number Area in acres RIADA, Ranchi 17 1,392.57 47.67 398 BIADA, Bokaro 4 1,470.59 78.46 517 AIADA, Jamshedpur 1 2,955.76 40.00 1,135 SPIADA, Dumka 6 1,044.15 450.17 35
Source: Department of Industry, Government of Jharkhand
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KEY INDUSTRIES – MINING AND METALS … (1/4)
Mineral Resources in Jharkhand:
Iron Ore – The hematite region in Jharkhand has reserves of over 3,000 million tonnes. Out of these, 2,000 million tonnes of reserves are in Chiria, near Monoharpur in district Singbhum. It is one of world’s largest single deposits. Chiria deposits have around 62-63% iron content. The Chiria deposits have the potential of a large mine having production capacity of 10 million tones per annum.
Coal – The state’s coal reserves are estimated at around 69,128 million tonnes, present in Jharia, Bokaro, Rajmahal, Hazaribagh and Chatra areas. These areas are the major coking coal regions of India of which Jharia coal field is the biggest in India.
Limestone – Jharkhand has 22 limestone mines with a total reserve of 563 million tonnes. The limestone mines are located in the districts of Palamau, Hazaribagh, Singbhum and Ranchi. Jharkhand possesses all grades of limestone, namely - BF, SMS and cement grade.
Graphite - Palamau district of Jharkhand has a major share of the graphite reserves. In the Palamau district, important reserves are in Sokra, Satbarba and Barwadih areas. Here, flaky and amorphous forms of graphite are found. Sokra has 0.6 million tonnes of reserves with 50-60% carbon content.
Granite and ornamental stones – The granite and ornamental stones reserves of Jharkhand include dolomites, gabber, banded hematite jasper and migmatites. According to Indian Bureau of Mines granite reserves in Jharkhand are estimated to be around 19 million cubic metres.
Mica - Jharkhand is the leading producer of mica and has 46% of India’s mica reserves.
Copper - Copper ore deposists are present in East Singbhum region. Copper ore reserves in Jharkhand are around 110 million tonnes.
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KEY INDUSTRIES – MINING AND METALS … (2/4)
As on June, 2015 Jharkhand accounted for about 40.0 per Jharkhand’s share in India’s mineral reserves cent of India’s total mineral reserves. Jharkhand stands 1st in coal reserves, 2nd in iron ore reserves, 3rd in copper ore 40% reserves and 7th in bauxite reserves in the country. 36% 29% 26% 30% Jharkhand is the only producer of prime coking coal, 18% dolomite, limestone, mica, graphite, manganese, china clay, coal bed methane, soap stone, fire clay, apatite, uranium, phosphorite, gold, pyroxenite, quartz and feldspar. 5%
During 2014-15, Jharkhand accounted for 16.8 per cent of Rock Coal Iron ore Apatite Copper Silver All the total iron ore production in the country. Phosphate ore Minerals
Jharkhand accounts for 14.3 per cent of the total steel produced in the country. During 2014-15, the state Source: Department of Mines & Geology, Government of Jharkhand, produced 11.7 million tonnes of steel. The government Jharkhand State Mineral Development Corporation, Indian Bureau of targets to increase steel production to 25 million tonnes by Mines, Indian Minerals Yearbook 2014 2017-18.
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KEY INDUSTRIES – MINING AND METALS … (3/4)
Production of MCDR (Mineral Conservation and Development Rules) minerals
Name of mineral Unit 2013-14 (P) 2014-15 (P)
Bauxite Tonnes 2,282,428 2,024,968
Copper ore Tonnes 398,569 180,496
Copper concentrate Tonnes 13,741 5,902
Gold ore Tonnes 7,552 4,232
Iron ore ‘000 tonnes 22,557 19,578
Manganese ore Tonnes 4,701 4,367
Dolomite Tonnes 267,146 135,319
Felspar Tonnes 5,476 3,252
Flint stone Tonnes 459 269
Graphite Tonnes 43,717 41,251
Kaolin Tonnes 600 70,623
Limestone ‘000 tonnes 1,902 792 Source: Indian Bureau of Mines Quartz Tonnes 27,244 14,730 (P): Provisional
AUGUST 2015 For updated information, please visit www.ibef.org 39 JHARKHAND THE MINING BASE OF INDIA
KEY INDUSTRIES – MINING AND METALS … (4/4)
• Established in 1907, Tata Steel is one of the world’s largest steel manufacturers. The company earned a revenue of US$ 6.93 billion in 2014-15 and produced 9.07 million tonnes of saleable Tata Steel Ltd steel. • The company is setting up a 12 million tonnes per annum (MTPA) greenfield integrated steel plant in the state at Seraikela, supported by a state-of-the-art plant in Jamshedpur with a capacity of 7 MTPA. Meanwhile, one of Tata’s joint venture company set up a new 250,000 tonnes production facility at Bara, Jamshedpur to manufacture Zinc-Aluminium coated coils. Jindal Steel & Power • JSPL is a leading player in steel, power, mining, oil and gas, cement and infrastructure. The Ltd (JSPL) company recorded revenues of US$ 2.2 billion in 2014-15. • The company plans to invest US$10 billion in setting up a 12-MTPA integrated steel plant and a 2,640-MW captive power plant in the state. A 3-MTPA steel plant at Patratu near Ranchi is expected to be commissioned by 2016.
Hindalco Industries • HIL, a part of the Aditya Birla Group, is the world's largest aluminium rolling company and one Ltd (HIL) of the biggest producers of primary aluminium in Asia. • Hindalco's alumina refinery with 450,000 TPA capacity is located at Muri. It has the distinction of being the first alumina refinery in India. The company also has a 30 MW, coal-based captive power plant. It generated revenues of US$ 5,656 million in the 2014-15.
Steel Authority of India • SAIL is one of the leading steel-making companies in India. It is owned by the Government of Ltd (SAIL) India. The company operates a steel plant at Bokaro in Jharkhand. • SAIL has the well-equipped Research and Development Centre for Iron and Steel (RDCIS) as well as an in-house centre for engineering and technology, a management training institute and a safety organisation at Ranchi. It generated revenue of US$ 7.49 billion in the 2014-15.
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KEY INDUSTRIES – ENGINEERING … (1/2)
The major growth drivers of the engineering industry in Jharkhand are availability of raw material (iron and steel, Some of the key players aluminium, copper and other metals and non-metals), power, water and industrial labour. • McNally Bharat Engineering Company Ltd • TRF Ltd Numerous heavy engineering companies located in the • Timken India Ltd state produce equipment and provide turnkey and • Mecon Ltd consulting services to the existing metal and mining industry.
Bokaro and Jamshedpur are the major engineering clusters in the state.
In November 2014, Heavy Engineering Corporation Limited announced plans to invest US$ 58 million for the expansion of its Ranchi based manufacturing facility. The purpose of this investment is to enhance the production of crushing equipment.
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KEY INDUSTRIES – ENGINEERING … (2/2)
• MBE is one of the leading engineering companies in India. It is engaged in providing turnkey McNally Bharat solutions in the areas of power, steel, aluminium, material handling, mineral beneficiation, Engineering Co Ltd (MBE) pyroprocessing, pneumatic handling of powdered materials including fly ash handling and high concentrate disposal, coal washing, port cranes, and civic and industrial water supply, among others. • MBE has constructed over 300 plants on turnkey basis. One of its heavy fabrication units and the machine shop facility are based at Kumardhubi in Jharkhand.
• TRF Limited (formerly, Tata Robins Fraser Limited), was incorporated in 1962 and is part of the TRF Ltd Tata Group. It provides solutions for material handling systems and equipment in infrastructure sectors such as steel, power, port and mining. • In 2014-15, total revenues of TRF were around US$ 90.79 million. • The manufacturing facility of the company at Jamshedpur is spread over around 22 acres, which includes six covered manufacturing bays spanning around 21,250 sq m.
Timken India Ltd • Timken India Limited is a subsidiary of The Timken Company, US. The company’s principal activity is production of tapered roller bearings at its Jamshedpur plant. Timken provides friction management solutions for a wide range of industry applications. In 2014-15, total revenues of the company were around US$ 155.09 million.
Mecon Limited is a public sector undertaking under the Ministry of Steel (Government of India), Mecon Ltd • with interest in the metals, power, oil and gas, and infrastructure sectors. • Mecon is an engineering, consultancy and contracting organisation and offers a range of services required for setting up of projects from concept to commissioning, including turnkey execution. The company employs around 1,285 engineers, scientists and technologists. Mecon has its head office in Ranchi.
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KEY INDUSTRIES – CHEMICALS & FERTILISERS … (1/2)
The chemical industries in Jharkhand produce a wide range of chemicals such as caustic soda, dye and pigments and industrial and medical gas. The industry has Key players in chemicals developed to serve other manufacturing units in the region and the markets of • Aditya Birla Chemicals (India) Ltd eastern India. The state has established chemical clusters in the Sahibgunj, Tata Pigments Ltd Bokaro, Dhanbad, Hazaribagh and Deoghar districts to promote investments from • micro, small and medium enterprises (MSMEs). • BOC India
Projects & Development India Limited (PDIL) Catalysts Division which is located in Sindri (Jharkhand) is a manufacturer and supplier of catalysts used in ammonia plants and other industries
Cumulative requirement (R) & availability (A) of fertilisers (‘000 tonnes) during the year 2014-15 to 2015-16 (Up to June 2015)
Year Urea DAP MOP NPK
R A R A R A R A
2014-15 225 180.17 75 27.08 16 0.63 55 26.26
2015-16* 65 63.6 25 22.68 5 0.82 22.5 18.41
Source: Ministry Of Chemicals And Fertilizers, *Target DAP: Diammonium Phosphate, MOP: Muriate of Potash, NPK: Nitrogen, Phosphorous and Potassium Fertilisers
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KEY INDUSTRIES – CHEMICALS … (2/2)
• Aditya Birla Chemicals (India) Limited (formerly, known as Bihar Caustic and Chemicals Limited) is one of the leading chlor-alkali companies in India. Aditya Birla Chemicals (I) Ltd • The caustic soda plant of the company is located at Garhwa Road in the Palamau district of Jharkhand. It was commissioned in 1984. The installed capacity of the plant is 105,000 tonnes per annum. • The company’s product range includes caustic soda lye, liquid chlorine, hydrochloric acid, sodium hypo-chlorite, compressed hydrogen gas, aluminium chloride and stable bleaching powder. In 2014-15, company generated revenues of US$ 186.74 million. • The company also has a 30 mega watt captive power plant for uninterrupted power supply.
Tata Pigments Ltd • Formed in 1927, Tata Pigments Limited is one of the largest producers of synthetic iron oxide pigments in India. • The company has a manufacturing plant in Jamshedpur.
• Linde India, formerly known as BOC India, started operations in 1935 as Indian Oxygen and Linde India Acetylene Company and is now a subsidiary of the Linde Group. • The company produces industrial gas, medical gas and specialty gas that it supplies across the country. BOC also carries out special projects. • BOC India is constructing a 2,550-tonnes per day Air Separation Unit (ASU) for Tata Steel at Jamshedpur. In 2014 (January to December), it generated US$ 243.98 million in revenues.
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KEY INDUSTRIES – CEMENT … (1/2)
During 2014-15, cement production in Jharkhand totalled 1.58 million tonnes. The major cement companies in Key players and their locations Jharkhand are ACC Ltd, Jaypee Group and Lafarge India. The state has four large cement plants with an installed • ACC Ltd – Chaibasa and Sindari capacity of 8.48 million tonnes. • Lafarge India - Jamshedpur • Jaypee Group – Bokaro Jharkhand has a vast track of crystalline limestone, starting from Garhwa district to Bokaro district. Exploration of limestone in this area will help in developing cement plants Source: Department of Mines & Geology, Department of Industry, in the state. Cement Manufacturing Association Government of Jharkhand,
With the reserves of cement grade limestone, this region is well suited for creating additional capacities, both in large and mini cement plants.
Jharkhand has around 489 million tonnes of limestone reserves. During 2014-15, the state produced over 4.67 million tonnes of limestone.
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KEY INDUSTRIES – CEMENT … (2/2)
ACC Ltd • ACC Limited is one of the largest cement manufacturers in India with a country-wide network of factories and marketing offices. The annual revenue of the company for the year 2014-15 was US $ 1.95 billion. • The company has two plants in Jharkhand – one at Chaibasa with a capacity of 870,000 tonnes per annum (TPA) and another at Sindri with a capacity of 910,000 TPA. ACC Cement plans to expand capacity of its Sindri unit to 2.5 MTPA, with an estimated investment of US$ 55.2 million.
• Lafarge India is a subsidiary of the French building materials major. The company entered the Lafarge Indian cement market in 1999 with the acquisition of the cement business of Tata Steel. • Lafarge has four cement plants in India, of which one is located at Jharkhand. • The plant serves the cement market in eastern and central India. • In 2014, the company had 3 cement plants in India with a market share of 20% in the cement market.
Jaypee Group • Jaypee Group is the third largest cement producer in the country and produces a special blend of Portland Pozzolana cement under the brand name ‘Jaypee Cement’. Its cement division currently operates modern, computerised process control cement plants with an aggregate installed capacity of 28 MTPA.
MTPA: Million tonnes per annum
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KEY INDUSTRIES – AUTOMOTIVE … (1/2)
The automotive industry in Jharkhand includes original equipment manufacturers as well as auto component Key players production units. • Tata Motors Ltd
• Apex Auto Ltd The auto components produced range from simple items JMT Auto Ltd such as nuts and bolts to complex ones such as shafts, • radiators and axles.
The state has an auto cluster in Adityapur and one auto cluster is coming up near Jamshedpur. The Adityapur Industrial Development Area is one of the largest auto ancillary hubs in the country.
More than 600 auto ancillary industries, including auto components units, have been set up subsequently at Jamshedpur and Adityapur to cater to the needs of automobiles companies.
An automobile vendor park will be established under PPP or private mode by mega automobile manufacturing units in the state. As of March 2015, the park is in construction stage.
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KEY INDUSTRIES – AUTOMOTIVE … (2/2)
• Tata Motors Limited is one of India's largest automobile companies and has global presence. The company generated total revenues of US$ 42.04 billion in 2014-15. • The company’s manufacturing base is spread across India. It has a plant at Jamshedpur in Tata Motors Ltd Jharkhand. • The company is focusing on enhancing the look and feel of its commercial vehicles through DesignNext program. • In 2013 - Tata Nano crossed 3 million fans on Facebook and became India’s number one auto brand. • Tata Indigo eCS entered Limca Book of Records • Tata Motors Jamshedpur plant manufactured its 2 millionth truck • For the first time in the industry Tata Nano offered ‘Swipe your credit card and drive home a Nano’ • Tata Motors has launched Tata PRIMA trucks in Sri Lanka
Apex Auto Ltd • Apex Auto was incorporated in 1994 and manufactures excavator components. • The company’s manufacturing plant is located at Adityapur near Jamshedpur.
JMT Auto Ltd • JMT manufactures automobile ancillaries, ancillary gear boxes, axle components, gearboxes and excavator components. Its plant is located at Adityapur in Jharkhand. • The company exports products to Malaysia, Dubai, the US, Brazil and other countries, besides supplying to large industries such as Tata Motors, Telcon, TAFE, L&T-Komatsu Ltd, Tata Cummins and Caterpillar in India.
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KEY INDUSTRIES – AGRO-BASED … (1/2)
Jharkhand has a varied agricultural product base that supports a host of agro-based industries. The state’s soil and climatic Key players conditions also support the cultivation of ornamental plants, mushrooms, spices and tea. • Swastik Group
We Group Mushroom Birla Institute of Technology (BIT), Ranchi, conducts a three- • year undergraduate course on food processing technology. The institute, in collaboration with Department of Welfare, Government of Jharkhand, conducts training programmes on MSME: Micro, Small and Medium Enterprises food processing techniques.
A mega food park is being set up at Getalsud, Ranchi, on an area of 56 acres, where 32 food processing units are likely to be established with basic facilities such as roads, drainage, Jharkhand - Allocation of funds for water connection, power and cold storage chains. In addition, implementation of National Mission on Food the state has proposed an MSME cluster for specific crops Processing (NMFP), 2014-15 such as cashew, mango and jack fruit. The commercial operation date of the park is expected to be September 2015. Allocation of GOI Share (US$ million)
The state is undertaking focused efforts to promote Jharkhand 0.85 pisciculture. Over the past decade, fish production in Jharkhand has increased to 72,000 tonnes from 14,000 tonnes. India 29.86
The rural population can participate as cooperatives and self help groups, among others to ensure the development of piggery, goatery, dairy and poultry in the organised sector.
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KEY INDUSTRIES – AGRO-BASED … (2/2)
Swastik Group • Swastik Fruits Products Limited and Swastik Aqua Limited, two companies under Swastik Group, produce mango juice (sold under ‘Frooti’ brand) and apple juice (sold under ‘Appy Fizz’ brand) for Parle Agro, which is one of the major processed food companies in India. • The company has two state of the art units at Ranchi in Jharkhand.
We Group Mushroom • Established in 2001, We Group is a food processing unit in the small scale sector. It produces We Group and distributes fresh mushrooms, mushroom seeds and pickles. Mushroom • We Group has a plant in Dhanbad.
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KEY INDUSTRIES – SILK AND HANDICRAFT
Jharkhand has a large sericulture base. The state is the largest producer of tussar (a non-mulberry silk) in the Catalytic Development Programme (CDP) funds country, with 76.4 per cent share in the total output. Raw silk sanctioned/utilised to promote sericulture production in the state was 2,003 metric tonnes in 2013-14. (US$ million) In 2014-15, the production of raw silk stood at 1,946 metric tonnes. The state produced 1,890 tonnes of tropical tussar 2013-14 2014-15 silk during 2014-15.
Funds sanctioned/utilised Allocation Releases Jharkhand accounts for seven per cent share in India’s silk production and 40 per cent share in the tussar silk production. 5.06 2.82 2.82
Jharkhand primarily exports tussar silk to the US, the UK, Germany, France, Turkey, Japan, Australia, Sweden and Switzerland.
State-run Jharkhand Silk, Textile and Handloom Corporation Limited (JHARCRAFT) is responsible for the promotion of handicrafts and silk in the state. JHARCRAFT has established silk parks in the Ranchi, Saraikela-Kharsawan, Giridih and Deoghar districts.
Source: Ministry of Textile MSME: Micro, Small and Medium Enterprises
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SINGLE-WINDOW CLEARANCE MECHANISM
The Government of Jharkhand has implemented a Single- Window Clearance System (SWS) for faster and one-point clearance of industrial projects, single-point dissemination of industrial project-related information and streamlining of State-level Single Window Chief Secretary of inspection of industries by different agencies/authorities. Clearance and Monitoring Jharkhand Authority At the state level, a committee has been formed under the chairmanship of the Chief Secretary, with secretaries from all departments concerned and representatives from banks and financial institutions as members, to facilitate speedy clearances for mega projects (investment above US$ 8.29 million).
A similar committee has been constituted at the district level under the chairmanship of the Director of Industries to review the progress of all investment proposals received. District-level Single Director of Officers from various departments (industries, land and Window Clearance Industries revenue, commercial tax, labour and employment, forest Agency and environment, Jharkhand State Electricity Board, Jharkhand State Pollution Control Board and Damodar Valley Corporation) have been deputed to the SWS office to facilitate its smooth functioning. Source: Government of Jharkhand website, www.jharkhandindustry.gov.in
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KEY INVESTMENT PROMOTION OFFICES … (1/2)
Agency Description
• The objective of this department is to accelerate economic development by facilitating investments Department of in industries and infrastructure, developing required human resources for industrial employment, Industries and supporting small and rural industries, artisans and craftsmen.
• The department formulates plans, policies, acts and rules, and undertakes developmental activities. Department of • It is responsible for the expansion of generation, transmission and use of electricity. Energy • The department has different corporations, authorities and undertakings such as Jharkhand State Electricity Board (JSEB), Tenughat Vidyut Nigam Limited, Jharkhand Renewable Energy Development Authority and the Electricity Licensing Board, under its supervision.
• The Adityapur Industrial Area is situated in the district of Seraikela Kharsawan, near Jamshedpur. • AIADA controls an area of about 53 sq miles. Adityapur Industrial • It has so far developed 1,365 plots and 142 industrial sheds. Area Development • There are 1,102 operating units in the AIADA-controlled area, which provide employment to about Authority (AIADA) 27,900 persons. • AIADA provides land, water, electricity and technical expertise to assist in the setting up of units in the industrial area.
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KEY INVESTMENT PROMOTION OFFICES … (2/2)
Agency Description
Bokaro Industrial • BIADA is located in Bokaro Steel City, which has several small-scale industrial (SSI) units. Area Development • BIADA provides most of the industrial supplies for SAIL’s Bokaro steel plant, which is the catalyst Authority (BIADA) for the industrial units in BIADA.
• RIADA controls industrial areas spread over the nine districts of Ranchi, Hazaribagh, Koderma, Ranchi Industrial Palamu, Garhwa, Lohardagga, Khunti, Ramgarh and Gumla. Area Development • A total of 20 industrial estates have been developed by RIADA. Authority (RIADA) • RIADA provides land, water, electricity and technical expertise to assist in setting up industries.
• After the formation of Jharkhand in 2000, JSEB was formed as a separate entity from the Bihar Jharkhand State State Electricity Board (BSEB). Electricity Board • Apart from generating electricity, JSEB is involved in transmission and distribution throughout the (JSEB) state.
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CONTACT LIST
Agency Contact information
Nepal House, Doranda Ranchi - 834001, Jharkhand Department of Industries, Phone: 91-651-2491 844 Government of Jharkhand Fax: 91-651-2491 884 E-mail: [email protected] Website: http://jharkhandindustry.gov.in
Vikas Bhawan Adityapur, Adityapur Industrial Area Jamshedpur – 831013, Jharkhand Development Authority (AIADA) Phone: 91-657-2371 646/460 E-mail: [email protected] Website: www.aiada.in
RIADA Building, 5th Floor, Ranchi Industrial Area Namkun Industrial Area, Ranchi Development Authority (RIADA) Website: www.riada.in
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KEY APPROVALS REQUIRED
Approvals and clearances required Department
Department of Industries, Government of Jharkhand, and District Allotment of land/acquisition of land/change of land use Collector
Approval of building plan Industrial Area Development Authority and Local Bodies
Release of power connection and consent for setting Jharkhand State Electricity Board (JSEB) up captive power plant
Release of water supply State Water Supply Board and Industrial Area Authority
Registration as a factory Chief Inspector of Factories
Sales tax registration Revenue Department, Government of Jharkhand
Registration under Trade Union Act Labour Department, Government of Jharkhand
Registration under Shops and Establishments Act Labour Department, Government of Jharkhand
Registration under Industrial Disputes Act Labour Department, Government of Jharkhand
Registration under Minimum Wages Act/Employee Labour Department, Government of Jharkhand State Insurance Act
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COST OF STARTING A BUSINESS IN JHARKHAND…(1/2)
Associated costs Procedure Time to complete (US$)
Obtain director identification number (DIN) online from the Ministry of 1 day 1.65 Corporate Affairs portal (National)
Obtain digital signature certificate online from private agency authorized by the 3 days 24.88 Ministry of Corporate Affairs (National)
Reserve the company name online with the Registrar of Companies (ROC) 5 days 8.29 (National)
Stamp the company documents at the State Treasury (State) 1 day 2.98
Get the Certificate of Incorporation from the Registrar of Companies, Ministry 6 days 219.80 of Corporate Affairs (National)
Make a seal (Private) 1 day 5.80
Source : www.doingbusiness.org
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COST OF STARTING A BUSINESS IN JHARKHAND…(2/2)
Associated costs Procedure Time to Complete (US$)
Obtain a Permanent Account Number (PAN) from an authorized franchise or agent appointed by the National Securities Depository Ltd. (NSDL) or the Unit 15 days 1.11 Trust of India (UTI) Investors Services Ltd., as outsourced by the Income Tax Department (National)
Obtain a Tax Account Number (TAN) for income taxes deducted at the source from an authorized franchise or agent appointed by the National Securities 14 days 0.94 Depository Ltd. (NSDL), as outsourced by the Income Tax Department (National)
Register with the Office of Inspector, Shops, and Establishment Act (State/ 7 days 82.94 Municipal)
Register for Value-Added Tax (VAT) at the Commercial Tax Office (State) 20 days 8.29
Register with Employees' Provident Fund Organization (National) 20 days No cost
Register for medical insurance at the regional office of the Employees State 14 days No cost Insurance Corporation (National)
Source : www.doingbusiness.org
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COST OF DOING BUSINESS IN JHARKHAND
Cost parameter Cost estimate Source
Land (per sq ft)* US$ 15 to US$ 30 Industry sources
Labour cost (minimum wages per Ministry of Labour and Employment, US$ 3.0 to US$ 4.6 day) Government of India, www.paycheck.in
Hotel costs (per room per night) US$ 75 to US$ 150 Leading hotels in the state
Residential rent (2,000 sq ft per US$ 175 to US$ 400 Industry sources month)
Commercial: US 8.2 cents Jharkhand State Electricity Regulatory Power cost (per kWh) Industrial: US 7.3-9.1 cents Commission
Water (per 1,000 gallons) US 19 cents Industry sources
*Ranchi and Jamshedpur
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STATE ACTS & POLICIES
Jharkhand Tourism Policy 2015
Objectives • The aim of tourism policy is to make Jharkhand the most preferred tourist destination both inside and outside India • To develop tourism infrastructure • To increase employment opportunities • To boost the state’s resources • To showcase the state’s cultural heritage and traditions
Jharkhand State Solar Power Policy 2015
Objectives • To boost private sector participation to set up solar power projects in Jharkhand and increase solar power generation to 2,500 MW by 2020 • To set up a promising atmosphere for solar power projects. • Energy security in stable and non-polluting ways • To generate employment by encouraging the setting up of local manufacturing facilities in the state.
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STATE ACTS & POLICIES
Jharkhand Procurement Policy 2014
Objectives • To give preference to purchase of products and services from Micro and Small Enterprises (MSEs) of the state • To encourage competitiveness among local MSEs and other industrial units • To facilitate purchase from state MSEs • All the administrative departments and agencies under the State Government, Boards, Corporations, trusts, Development Authorities, Municipalities, Committees and Co-operative Bodies and Institutions which are aided by the State Government along with companies where share of Government is 50% or more – will purchase 20% of total yearly products and services purchase from MSEs of Jharkhand in 3 years • To ensure procurement of maximum number of goods and services from state enterprises without compromising on quality, cost and competitiveness
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ANNEXURE
Average exchange rates
Year INR equivalent of one US$*
2004-05 44.81
2005-06 44.14
2006-07 45.14
2007-08 40.27
2008-09 46.14
2009-10 47.42
2010-11 45.62
2011-12 48.13
2012-13 54.31
2013-14 60.28
2014-15 60.28
2015-16 Q1 64.01 Source: Reserve Bank of India
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