Uttarakhand | December 2008
UTTARAKHAND December 2008
www.ibef.org Uttarakhand | December 2008
State economy and Socioeconomic profile
www.ibef.org 2 Uttarakhand | December 2008
UkhdUttarakhand – a snapshot
• Formed on November 9, 2000 • 27th state of India • Formed by joining 14 hilly districts of Uttar Pradesh • Area: 53,483 Sq. Km • Population: 8.5 million • Strategically located: • Shares borders with Nepal and Tibet (China) • Himachal Pradesh in the West and Northwest, Gangetic plains of Uttar Pradesh in the south • Diverse geographical features: • Snow-capped mountain peaks in the north • Tropical forests in the south • Equally diverse is its climate and vegetation • One of the five states in India to be declared as UNESCO's world heritage biodiversity sites • Administrative and legislative capital: Dehradun
www.ibef.org 3 Uttarakhand | December 2008 Socioeconomic snapshot Capital Dehradun Area 53,483 Sq. Km.
Population (Census 2001) 8.5 million
Density (2001) 158 per Sq. Km.
Sex ratio (Census 2001) 962 females per 1000 males
Principal languages Hindi, Garhwali, Kumaoni
Literacy rate (Census 2001) 71.6 per cent
Major minerals Limestone, soapstone and magnesite Hydropower, floriculture, horticulture, agro based Major industries and food processing industries, information and communication technology, biotechnology Major crops Rice, wh eat, ba rley, co rn , man dua aadnd haagoangora
GSDP at current prices in 2005-2006 US$ 6,331.1 million
NSDP at current prices in 2005-2006 US$ 5,508 million Annual per capita income at current prices in US$ 691.17 2005-2006 Domestic airports Jolly Grant, Pant Nagar
Source: Uttarakhand state official website www.ibef.org 4 Uttarakhand | December 2008
EifilEconomic profile GSDP (US$ million) 7000 6331.1 • The Gross State Domestic product (GSDP) of the state 6000 5365.56 5000 at current prices in 2005 – 2006 was US$ 6331.1 million. 4000 2845.81 • The Net State Domestic Product (NSDP) of the state in 3000 1916.66 2000 2004 – 2005, at current prices was US$ 5508 million. 1332.22 1000 • The services sector contributes to more than half of the 0 1993-1994 1996-1997 2000-2001 2004-2005 2005-2006 state’s GDP at 51 per cent, followed by the agricultural
and mining sector at 24 per cent and the manufacturing
sector at 25 per cent in 2004-2005. Sector contribution to GSDP (2004-2005) • The state is essentially driven by the tertiary sector; 25% tourism being one of the key sectors contributes majorly
to the state’s economy.
• 24 per cent of the GSDP is contributed by the primary 51% sector which includes agriculture, cultivation, mining
activities etc. 24% Source: Uttarakh an d stttate government
Tertiary Sector Secondary Sector Primary Sector
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SiSocioeconom ic pro file
• Per capita income grew at a CAGR of 5.2 per cent per Per capita income (US$)
annum between 1993-1994 and 2004-2005. 800 691 700 595 • In 2005-2006, the per capita income of the state stood 600 500 at US$ 691 . 400 338 300 245 178 • State’s literacy rate has increased considerably from 200 100 0 57.75 per cent in 1991 to 71.60 per cent in 2001; higher 1993-1994 1996-1997 2000-2001 2004-2005 2005-2006
than India’s average literacy rate of 65.38 per cent.
• As per 2001 census, the Work Participation Rate
(WPR) is 36.93 per cent for Uttarakhand and 39.30 per
cent for India.
Source: Uttarakhand state government
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Infrastructure Status
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PhilifttPhysical infrastructure
Railways
• Deployed 345 Km . of rail routes by 2005-2006.
• As on March 31, 2005, density of rail routes is 6.45 route Km. per thousand Km.
• State plans to increase the share of railways in cargo and passenger transportation.
• Efforts beinggj made in conjunction with the Urban Develo pppment Department to establish ‘Mono Rail S ystem’ in
Dehradun, Haridwar and Rishikesh and their inter-city linkage routes.
Source: Directorate of Economics and Statistics, Uttarakhand
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PhilifttPhysical infrastructure
Airways Flight connectivity Only from Delhi No. of airports Two
• State aims at positioning air-transport as a reliable all-weather transport option in hills.
• Upgradation work at the Pantnagar airport to facilitate international flights is under progress.
• Government has allocated US$ 0.23 million for construction of at least one helipad per
district.
Source: Directorate of Economics and Statistics, Uttarakhand
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PhilifttPhysical infrastructure
Roads
Total road network 28,508.58 Km. National highways 1,327.60 Km. State highways 1,542.78 Km.
• From 2006 to 2007, to ta l leng th o f roa d ne twor k was 28, 508. 58 Km.
• Then national highways coverage stood at 1328 Km, and the state highways coverage stood
at 1553 Km in 2006-2007.
• 9,419 villages out of a total of 15,656 were well-connected as in March 2005.
• Public works department of the state has planned several build –operate–transfer projects
under pppublic private partnershi ps.
Source: Directorate of Economics and Statistics, Uttarakhand
10 www.ibef.org Uttarakhand | December 2008
PhilifttPhysical infrastructure Transport network in Uttarakhand
Roads Railway track NtiNationa lhihl highway Airport
11 www.ibef.org Uttarakhand | December 2008
PhilifttPhysical infrastructure – UbUrban
Urban infrastructure
• Urban infrastructure development became a priority sector for the state government since
2005-2006, with an allocation of US$ 20.33 million for its activities
• This was further increased to US$ 58. 84 million for the year 2006-2007. • State housing projects have been taken up under various urban infrastructure development
projects
• 275 acre hous ing pro jec t in HidHaridwar ifthitfhjtis one of the instances of such projects • With an aid of US$ 15.12 million from the Government of India, conservation and rejuvenation
project of Naini Lake and four other lakes in the surrounding areas have been taken up
Source: Uttarakhand State Government
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PhilifttPhysical infrastructure – Power - 1/2
Power
• Being developed as an ‘energy state’ to tap its huge hydro power potential of 20,000 MW
• State intends to increase its capacity to 5,000 MW hydro electric power by 2011-12
• State has simultaneously supported alternate sources of power generation; solar water heaters with heating
capacity of 97,500 litres per day, seven biogas-bracketing plants, 12 solar plants, and a state level energy park
in Dehradun
• Number of electrified villages grew to 15,547 in 2006-2007
Source: Uttarakhand State Government
13 www.ibef.org Uttarakhand | December 2008
PhilifttPhysical infrastructure – Power - 2/2
Input 2001 2006 Growth/ achievement
Villages electrified (No.) 12563 15290 1814
Hamlets electrified (No.) 703 3368 2665
BPL connections (No.) - 82243 82243
PTW connections (No.) 16667 19107 2440
Consumers (No.) 816949 1065356 248407
Rural electrification % (incl. 79 95.48 16.48 UREDA )
ATandC losses (per cent) 45.07 38.79 -6.28
Annual per capita consumption 413 654 241 (KWh)
Human capital workforce (No.) 5807 4998 -809
Source: Uttarakhand State Government
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UbifttUrban infrastructure – 1/2
• Concentrated effort to ensure supply of pure drinking water
• State government is encouraging traditional methods of water harvesting like nauley, dharey, chal and
khal. • In 2005-2006, US$ 76.28 million was the spend on improvement of water supplyyy systems
• Government proposes to spend US$ 86.05 million on further improving the water supply in the state in
2006-2007
Drinking water supply details in Uttarakhand (2006-2007) Inhabited revenue villages covered 15,547
Population covered 6. 465 million Scarcity villages 2 Scarcity hamlet (i) Not covered (N.C.) 3,805 (ii) Partially covered (P.C.) 12,247 Source: Uttarakhand State Government
15 www.ibef.org Uttarakhand | December 2008 Urban infrastructure – 2/2
Development under total sanitation for village in Uttarakhand
31,549 2000-2001 2005-2006
10,316 7,590 5,330 5,823 4,506 2,834 5,067
Individual toilets Compost pits Soakpits Garbage pits constructed constructed
• Government has undertaken development of total sanitation systems for villages in the state
• Worked at developing the waste disposal system under ‘Total Sanitation’ campaign
• PtilPartial sewer arrangemen thts have been prov iddfided for one-thir d o f the towns in the s ta te
Source: Uttarakhand State Government
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Social infrastructure - health
State has a good network of hospitals and health centres; health and population policy were laid to improve the quality of life of the populace, with focus on developing an effective health infrastructure.
Following objectives were laid down by the state in its health and population policy:
• Eradicate polio by 2007
• Reduce the level of leprosy to below one per 10,000 population by December 2007
• Reduce mortality on account of tuberculosis, malaria, and other vector and water-borne diseases by 50
per cent by 2010
• Reduce prevalence of blindness from around one per cent to 0.3 per cent by 2010
• Reduce Iodine Deficiency Disorder (IDD) by 50 per cent of the present level by 2010
• Increase awareness on HIV/AIDS
17 www.ibef.org Uttarakhand | December 2008
Social infrastructure - health
State allopathic hospitals and dispensaries Family welfare services (2006-2007) Women and child welfare centre 2 District level hospital 11 Main centre 84 Base hospital 3 Women and child welfare sub-centre 1,769 P.H.C./Additional P.H.C. 232 Community health centre 49 State allopathic hospitals 322 Joint/ women hospital 40 Other hospitals Tehsil/ district level post partam centre 24 Homeopathic hospital/dispensary 97 Health post 9 Ayurvedic hospital 513 Tuberculosis hospital/clinic 18 Unani hospital 5 Leprosy 3 Beds in government hospitals 7,769
Source: Uttarakhand State Government
18 www.ibef.org Uttarakhand | December 2008 Social infrastructure – education – 1/2
• State acclaims some of the country’s best institutes of higher
learning which include:
• GB Pant University of Agriculture and Technology, Pantnagar
• Indian Institute of Technology, Roorkee
• Forest Research Institute, Dehradun
• GB Pant Institute of Himalayan Environment and Development, Almora
• Rural Biotechnology Complex in Kosi and Herbal Research and Development
Institute, Gopeswar • With a current literacy rate of 72.28 per cent, the state strives to
achieve 95 per cent literacy rate, for which it has adopted a tri-
fold strategy with the following elements:
• 100 per cent enrolment
• 100 per cent retention
• Continuous education programme • State plans to achieve 100 per cent computer literacy for
students by the end of the tenth five-year plan
• For this purpose the state has worked at improving the IT
infrastructure at all levels, beginning with educational institutes
Source: Uttarakhand State Government 19 www.ibef.org Uttarakhand | December 2008
Social infrastructure – education – 2/2
Basic/ secondary education (2006-2007) Number of schools/ colleges 21, 584 Number of students 2,307,622 Number of teachers 80,776
Higher education Number of institutions 108 Number of students 129,458 Number of teachers 1,562
Vocational and technical education
Industrial training institutes 104 Polytechnics 30
Distant institute of education and training 9
Source: Uttarakhand State Government
20 www.ibef.org Uttarakhand | December 2008
Physical infrastructure – telecom and IT
Communication infrastructure in Uttarakhand • Well-developed communication network including both (2006-2007) wired and wireless connectivity. Number of Postal and communication services units • Establishment of an Software Technology Park of India Post offices 2,716 earth station at Dehradun and proposed earth stations at Number of teleppghone exchanges 454 other locations has positioned Uttarakhand well with Telegraph offices 163 respect to providing high speed connectivity. PCOs 14,338 Source: Uttarakhand State Government • Information technology department has actively worked Telephone connections (Including WLL) by BSNL 397,755
in dlideveloping two ifinforma tion thltechnology parks in the Mo bile p hone connect ions by BSNL 492, 972
state in 2005-2006.
• The Uttarakhand State Wide Area Network (USWAN)
project proposed has been approved by the Government
of India. Key highlights • By the end of 2006-2007, the state aims at having the Development of PKI/smart card infrastructure.
required Information Technology infrastructure for World’ s first Microsoft IT Academy was established in Dehradun USWAN and data centre in place. Uttarakhand is among the leading states in computer education.
21 www.ibef.org Uttarakhand | December 2008
Industrial infrastructure
• State has transformed an essentially agrarian state into a hub of industrial activity. During 2005-2006,
the state successfullyyp developed the followin g:
• Three Integrated Industrial Estates (IIEs) at Haridwar, Pantnagar and Sitarganj
• Pharma City at Salequi
• Information Technology Park at Sahastradhana (Dehradun)
• Growth centre at Siggadi (Kotdwar)
• In 2005-2006, Uttarakhand also saw the development of 20 private/joint/co-operative sector industrial
sectors in public private partnership mode
• Some of th e oth er eff ort s mad e i n thi s di rec tion i nc lu de:
• Provision of broadband connectivity for all industries in the state
•Proppgggosed strengthening of single window – contact, information and facilitation mechanism from
2006 to 2007
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IdtilifttIndustrial infrastructure
Industrial estates-at a glance
NfthName of the LtiLocation TtlTotal area Financi al i ncenti ves PdidtiProposed industries estate Integrated Three Km. 2,034 acres • 100 per cent central excise • Cosmetics and allied industrial estate from Delhi- exemption for 10 years • Plastic and allied -Haridwar Haridwar • 100 per cent income tax • Apparel and allied National exemption for first five years and • Agro food and allied Highway 30 per cent for next five years • Pharma products • Central Sales Tax (CST) @ one per cent for five years • Electrical, electronics and allied • Capital Investment Subsidy @15 pp$er cent with a maximum of US$ • Institutional, commercial 73,170 and a llie d Integrated NH-87 3,339 acres • 100 per cent central excise • Cosmetics and allied industrial estate exemption for 10 years • Plastic and allied - Pantnagar • 100 per cent Income Tax • Apparel and allied exemption for first five years and • Agro food and allied 30 per cent for next five years • Pharma products • CST @1 per cent for five years • Electrical, electronics and • Capital investment subsidy @15 allied per cent with a maximum of US$ 73,170 • Furniture hub • Institutional, commercial and allied
Source: State infrastructure and industrial development corporation of Uttarakhand Ltd
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IdtilifttIndustrial infrastructure
Industrial estates - at a glance
Name of the Location Area Financial incentives Proposed industries estate
Integrated 15 Km. north of 1,200 acres NA NA Industrial Estate, Sitarganj town Sitarganj
Pharma City, 25 Km. from 50 acres • 100 per cent central excise exemption for • Pharmaceutical formulation Selaqui Industrial Dehradun 10 years industry to be preferred Area, Dehradun • 100 per cent income tax exemption for first five years and 30 per cent for next five years • CST @ one per cent for five years • Capital investment subsidy @15 per cent with a maximum of US$ 73,170
Sigaddi Growth 120 Km. from 100 acres • 100 per cent central excise exemption for • Thrust sector industries only Centre Dehradun 10 years • 100 per cent income tax exemption for first five years and 30 per cent for next five Years •CST @@p one per cent for five years • Capital investment subsidy @15 per cent with a maximum of US$ 73,170
Source: State infrastructure and industrial development corporation of Uttarakhand Ltd. 24 www.ibef.org Uttarakhand | December 2008
IdtilifttIndustrial infrastructure
Industrial estates - at a glance
Name of the Location Area Proposed facilities estate State-of-the- Sahastradhara 60 acres • Ready-to-occupy Hi-tech intelligent building. Art road • Developed plots of varying sizes Information Technology • Academic zone for educational and research organizations park • STPI incubation centre to promote local entrepreneurs. • Large tracts of land have been devoted to green areas and opppen spaces • Habitat centre to cater to business support and recreational needs of the occupants • Other support facilities such as conference hall, training centres, guest house, travel and forex service, banks and ATM’s, multi -cuiiisine foo d cour tht, hea lthlblth club w ith gym, me dildical centre, serviced apartments, library and information bureau, indoor and outdoor sport facilities like squash, tennis, badminton courts, billiards etc
Source: State infrastructure and industrial development corporation of Uttarakhand Ltd.
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State Policies and Incentives
26 www.ibef.org Uttarakhand | December 2008
Stat e l evel poli c ies
New state industrial policy 2003 Tourism policy
• Aim of the policy is to provide a The tourism ppyolicy of the state aims at: comprehensive, investor friendly environment for rapid • Placing Uttarakhand on the tourism map of the world and sustainable industrial development as one of the leading tourist destinations, and to make • Thrust of the policy is on generating additional em pl oyme nt oppo rtu nit ies a nd inc reas ing t he state the name synonymous with tourism domestic product • Developing the manifold tourism-related resources of
• Policy aims at promoting public private partnerships in the state in an eco-friendly manner, with the active development and management of infrastructure participation of the private sector and the local host projects such as: communities • Industrial estates and growth centres • IIDCs, special economic and commodity zones • Developing tourism as a major source of employment and parks and income / revenue generation and as a pivot of the • Theme park s, t ouri sm economic and social development within the state infrastructure, development of new tourist destinations, airports/helipads /airstrips, roads and power projects • New policy also focuses in promoting small scale, cottage, khadi and village industries, handicrafts and handloom sectors www.ibef.org 27 Uttarakhand | December 2008
Stat e l evel poli c ies
Information technology policy
• Encourage the use of information technology in the government not only as a tool for management and decision
support systems but also to re-engineer the processes of the government to provide a more efficient, transparent,
accountable and responsive government to its citizens
• Upgrade the quality of life of citizens of the state by facilitating easy access to consumer applications of information
technology
• Encourage private sector initiatives for the development of world class information technology infrastructure adequate
for the needs of the citizens, the industry and the government
• Upgrade and develop manpower skills required for the information technology industry and to accelerate the use of
information technology in schools, colleges and other educateducationalional institutions with a view to providing skills and
knowledge to the youth so as to render them fit for employment in this industry
• Use information technology as a GDP driver by promoting IT industry in the state, developing the state as an attractive
IT destination w ith a v iew to generate employ ment for y ou th in this sector and raising their earning capacity and
simultaneously realising the export as well as domestic revenue potential in this sector
28 www.ibef.org Uttarakhand | December 2008
State level incentives
Category Details of state level incentives for industries
Capital investment • 15 per cent central capital investment aid up to a maximum of US$ 73,170 for the establishment of new industrial units and for the purchase of equipment and machinery for significant improvement in existing subsidy units • Three per cent annual relief on loans to new SSI units and SSI units expanding at least 25 per cent provided the loan is availed from state level financial institutions or banks operating in Uttarakhand and Interest subsidy have not defaulted in principal or interest payments • Five per cent waiver on annual interests on loans on SSI units and units notified as thrust industries being set u p in remote areas • Stamp duty concessions to be provided in respect of land in specialised commodity parks, including IT Land subsidy parks Registration of patents • 75 per cent of the cost (subject to a maximum of US$ 4,878) for registering patents shall be reimbursed and other IPR Power subsidy • No restriction in the state in using power during the peak hours • A 100 per cent relief in the state excise duty for a period of 10 years • A 100 per cent relief in income tax for the first five years, and thereafter a 30 per cent relief to companies and 25 per cent relief for others • CST @ one per cent for five years • Exemption from entry tax on plan and machinery for setting up industry for undertaking substantial expansion and modernization • 100 per cent exemption on entertainment tax for multiplex projects for a period of three years Others concessions • 100 per cent exemption on entertainment tax on amusement parks and ropeways for a period of five years • 75 per cent of the total expenditure incurred in obtained national/international quality marks to be reimbursed • 50 ppgpqper cent of the cost incurred in installing pollution control equipments to be reimbursed • Matching state subsidy on approved projects of National Horticulture Board (NHB), Agricultural and Processed Food Products Export Development Authority (APEDA), National Medicinal Plant Board (NMPB)
Source: Government of Uttarakhand 29 www.ibef.org Uttarakhand | December 2008
Thrust i nd us tri es
Thrust industries
• Floriculture • Sports goods and articles • Equipment for general physical exercise • Equipment for adventure sports/activities, tourism (to be separately specified) • Processing of medicinal and aromatic herbs • Paper and paper products excluding those in negative list (as per excise classification) • Honey • Pharma products • Horticulture and agro based industries such as • Information and communication technology industry • Sauces, ketchup, etc. • Computer hardware • Fruit juices and fruit pulp • Business process outsourcing • Jams, jellies, vegetable juices, puree, pickles etc. • Preserved fruits and vegetables • Processing of fresh fruits and vegetables including packaging • Processing, preservation, packaging of mushrooms • Food processing industry excluding those included in the • Bottling of mineral water negative li s t • Sugar and its by-products • Eco-tourism • Hotels, resorts, spa, entertainment/amusement parks and ropeways • Silk and silk products • Industrial gases (based on atmospheric fraction) • Wool and wool products • Handicrafts • Woven fabrics (excisable garments) • Non-timber forest product based industries Source: Uttara Portal 30 www.ibef.org Uttarakhand | December 2008
Business Opportunities
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Attracti ve sect ors
Tourism Sector specific incentives
• Tourism is an important sector for the state’ s economy Period Category Benefit • Uttarakhand is already a well-renowned religious (years)
tourism destination Rebate/deferment facility in New tourism respect of luxury tax from the date 5 • In 2005,,gg the state registered a growth of about 18 per units oftf commencement cent in domestic and 24 per cent in international tourist Exemption from payment of arrivals over the previous year New ropeways entertainment tax from the date of 5 commencement • Investment opportunities that exist in the tourism sector New EtifttittExemption from entertainment tax include: amusement from the date of becoming fully 5 parks operational • Development of facilities for providing spiritual
lessons, reiki, and other rejuvenating courses.
• Eco – tourism hotels, spa, resorts, amusement
parks and ropeways.
• Winter sports at places such as Auly, which have
the requisite terrain for the purpose.
• Adventure tourism
32 www.ibef.org Uttarakhand | December 2008
Attrac tive sec tors
Agro and food processing Floriculture and horticulture Biotechnology
• High bio-diversity makes the state • Demand in domestic and • Rare species of plants and
an attractive destination for agro international market has shifted animals found in the state, add to
and food processing industries the government's focus to its natural advantage in this sector
• State offers immense floriculture and horticulture • Government plans to develop
opportunities for establishing agro • Geographical location makes the Uttarakhand as a centre for
and food parks state particularly conducive for excellence in biotechnology
• Higher incentives being offered by commercial horticulture and • Government proposes to grant
MFPI for setting up units in floriculture industry status to units coming up
Uttarakhand • Immense opportunities for in the sector; provisions made for
• State government is also floriculture and horticulture parks the IT sector shall be applicable to
providing various subsidies for in the state this sector as well
projects under APEDA, NHB,
MFPI and NMPB
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Attractive sectors
IT and communication Hydropower Forest products
•• IT IT andand ITeSITeS have have beenbeen accordedaccorded •• Untapped Untapped potentialpotential forfor generatinggenerating • Excellent potential for the
thethe industryindustry statusstatus hydropowerhydropower development of forest resources-
•• Uttarakhand Uttarakhand offers offers high-speedhigh-speed •• State State aimsaims toto positionposition itselfitself asas thethe based industries
connectivityconnectivity viavia anan STPISTPI earthearth mostmost competitivecompetitive suppliersupplier toto thethe • Ample scope to develop industries
stationstation atat DehradunDehradun NorthernNorthern GridGrid based on forest and agro wastes
•• Emerging Emerging asas anan idealideal ITIT •• State State hashas aa potentialpotential toto generategenerate such as lantana, pine needles,
ddestinationes tina tion wwith ith anan ITIT PParkar k inin nearnearlyly 1515,000, 000 MW MW oof f h hydropowery dropower plan t and vege ta tive fibers
Dehradun,Dehradun, anan IT-BTIT-BT ParkPark inin andand 4747 locationslocations havehave alreadyalready • State also offers immense
Pantnagar,Pantnagar, andand severalseveral otherother up-up- beenbeen identifiedidentified ofof privateprivate sectorsector opportunities for medicinal,
comingcomijthihffing projectsprojects whichwhich offeroffer aromatic plants and herbal export-
immenseimmense opportunitiesopportunities inin thethe oriented units
sectorsector
34 www.ibef.org Uttarakhand | December 2008
Emerging opportunities
Sericulture
Thesectorhas theprospectof emerging as a major one , in the years to come. Muga cocoon produced in the state is comparable to the best quality available in India.
Fisheries Tea With Uttarakhand’s large water resources, the possibility of developing fisheries is immense. The Uttarakhand has emerged as the only state outside Fisheries Policy 2002 is devised aiming at integrated Other att racti ve the tditiltraditional tea growing areas toproduce ortho dox development of fisheries and use of scientific sectors tea. It is also proposed to bring in additional acreage techniques for the same. under tea plantation over the next few years.
Bamboo and fiber development
State gov ernm en t has establi sh ed a bam boo aadnd fibre development board to develop this sector
35 www.ibef.org Uttarakhand | December 2008
Investments in Uttarakhand
36 www.ibef.org Uttarakhand | December 2008
Industrial investment inflow
Proposed Proposed Total Period investment (US$ employment proposals million) (numbers)
IEM* + LOI IEM + LOI % Share IEM + LOI % Share
Mar-01 292 1,503 0.5 52,888 0.70
Mar-02 314 1,634 0.55 56,187 0.65
Mar-03 348 1,764 0.56 61,419 0.68
Mar-04** 490 2,087 0.59 76,422 0.69
Nov-04 596 2,561 0.65 90,188 0.77
Dec-05 950 14,989 0.79 152,170 1.27
**Investment Proposals since March 2004 also include DILs
37 www.ibef.org Uttarakhand | December 2008
Share of Uttarakhand in total industrial investment proposals
1.6
1.4 1.43
1.2 1.0
1
0.8 0.64 0.64 0.87 r centr cent eeee 060.6 PP 0.67
0.4
0.2
0
Mar 01 Mar 02Mar 03Mar 04 Nov 04 Dec 05
Source: Department of Industrial Policy and Promotion, Ministry of Commerce and Industry
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Year-wise distribution of IEMS filed in Uttarakhand till December 31, 2005
Year Numbers Proposed investment (US$ million)
Aug 1991 to Dec 2000 265 1,173.72
2001 21 128.60
2002 19 73.02
2003 110 220. 00
2004 116 619.30
2005 343 1,211.39
*IEM: Industrial Entrepreneurs’ Memorandum LOI: Letter of Intent
Source: Department of Industrial Policy and Promotion, Ministry of Commerce and Industry
39 www.ibef.org Uttarakhand | December 2008
Upcoming investments
Footwear FMCG 2% 2% Information Processed foods technology 3% 2%
Pharmaceuticals 8%
Automotive 83%
Expected Investment
40 www.ibef.org Uttarakhand | December 2008
Key Investors
Expected Sector Major investors investment
US$ 1767.44 Tata Motors, Hero Honda, Ashok Automotive million Leyland, M&M, Bajaj Auto.
Ranbaxy, Natco, Pegasus, Chris Pharmaceut US$ 174.42 Pharma, Intas Labs, Martin and Harris icals million Lab
PdProcessed US$6077US$ 60.77 PlParle, BitiBritannia, Nes tlDbtle, Dabur, RjRaja foods million Biscuits
US$ 46.51 Footwear Action, Lakhani, and Liberty million
US$ 34.88 Hindustan Lever Ltd, CavinKare, FMCG million Cosmos, Lotus, and Herbal Concept
Information US$3488US$ 34.88 Hewlett-Packard (HP) and HCL technology million Infosystems
41 www.ibef.org Uttarakhand | December 2008 Key investors
Project cost in Name of company Location Products US$ million
ITC Ltd. IIE, Haridwar Food and personal care products 29.12
Britannia Industries IIE, Pantnagar Biscuits and other food products 13.34 Ltd.
Health care, personal care, ayurvedic Dabur India Ltd. IIE, Pantnagar 11.44 cosmetics
Cavinkare Pvt. Ltd. IIE, Haridwar Cosmetic, shampoos/creams, deodorants 6.05
Twenty First Century Printed packaging material, cartons, IIE, Haridwar 5.83 Printers Ltd boxes, shells and labels
Polyurethane foam mattress, FT foam Somany Foam Ltd. IIE, Haridwar 5.99 sheets
Electrical fans, water lifting pumps, Polar industries Ltd. IIE, Haridwar 4.99 geysers, water purifiers and laminations
Havell's India Ltd. IIE, Haridwar Electrical products 3.96
VIP Industries Ltd. IIE, Haridwar Plastic molded luggage 3.95
Lakhani India Ltd. IIE, Haridwar Footwear and parts 3.70
42 www.ibef.org Uttarakhand | December 2008
KiKey inves tors
• ITC
• One of India's foremost private sector companies with a market capitalization of nearly US$ 15 billion and a
turnover of over US$ 4.75 billion.
• Established manufacturing facility in Uttarakhand for producing soaps and shampoos.
• Hiltron
• Independent corporation that initially worked to promote development of electronics and allied industries and
services in Uttarakhand.
• Currentlyyg functioning as an IT and communication service provider to the state , under the administrative
control of department of IT.
43 www.ibef.org Uttarakhand | December 2008
KiKey inves tors
• TATA Motors
• Tata Motors, one of the leading firms in the country in the automobile sector has set up its fourth plant in
Uttarakhand.
• This plant in Pantnagar has been set-up for manufacturing the firm’s mini truck named Ace.
.
• Hero Honda
• One of the leading brands in India for two wheelers,
• Established a new manufacturing plant in Haridwar,
• Plant is intended to have a capacity of 500,000 units.
44 www.ibef.org Uttarakhand | December 2008
KiKey inves tors
• Started work for a state-of-the-art, integrated manufacturing plant near Pantnagar in Uttarakhand
• Planning to invest US$ 232.56 million to create assembly and cab facilities for 25,000 vehicles annually, in the
first phase
• Scheduled to go on stream in 2008-2009. Phase II is expected to be operational by 2010
• Mahindra & Mahindra
• Mahindra and Mahindra Limited (M&M) is a major automaker in India.
• The new plant of the company in Uttarakhand is the company’s fifth full-scale automotive plant and has been
set up primarily for the manufacture of three-wheelers of different load capacities and range.
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KiKey inves tors
• Hindustan Lever
• HLL is India's largest fast moving consumer goods company in India
• Hindustan Lever Limited's (HLL) state-of-the-art personal care factory, setup with an initial investment of US$
30.23 million in SIDCUL’s IIE in Haridwar
• HCL Infosystem
• One of the largest vertically integrated IT manufacturing company of India,
• Launched its manufacturing facility at Rudrapur, Uttarakhand in the SIDCUL Industrial Estate,
• Overall capacity of produce up to two million personal computers per annum.
46 www.ibef.org Uttarakhand | December 2008
KiKey inves tors
• Nestle India Ltd.
• Nestle is the world's largest and most diversified food company
• Around 2,50,000 employees worldwide, 500 factories in approximately 100 countries and offering over 8,000
products universally
• Nestlé India has commissioned in 2006, its seventh factory at Pant Nagar in Uttarakhand
• Britannia
• Britannia is one of India’s food products company, with an estimated 38 per cent market share
• Company's principal activity is the manufacture and sale of biscuits, bread, cakes and dairy products like
cheese, butter and milk
• Established a plant in the integrated industrial estate at Pantnagar.
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Doing Business
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Key approvals required
List of approvals and clearances required Departments to be consulted Prior to setting up the unit
Registration Industries department
Uttarakhand Industrial Development Department Ltd./ Allotment of land/ shed Uttar Pradesh State Industrial Development Department Ltd./ Industry Division, Uttarakhand
PldPower load approva lfttildl for construction load Uttarakh an d s ta te el ect ri cit y d epar tment
Approval for construction of building activity under factories act Labor department
No objection certificate Fire department
Provisional trade tax registrations Central and state excise departments
Registration under central sales tax act Central and state excise departments
Before commencement of production
Uttarakhand Environment Protection and Pollution Environmental clearances Control Board
No objection certificate Fire department
Trade tax department Permanent trade tax registration
Registration under central sales tax act 1956 Central and state excise departments
49 www.ibef.org Uttarakhand | December 2008
Cost of doing business
Sr. No. Sector Cost
1 Manufacturing
A Land price (US$/Sq. mt.)* 22 – 37
B Labor (($US$/man y)year) 552 – 846
2 Industrial electricity (US cents/unit)
A Normal hours 4.6
B PkhPeak hours 585.8
C Non-peak hours 4.4
3 Prime lending rate (per cent) 12.75 - 13.25
4 Hotel stay (US$/night)
A Two Star 37 – 49
B Three Star 49 – 73
50 www.ibef.org Uttarakhand | December 2008 Business climate
Abundance of natural resources Location advantage • Abundance of natural resources • Proximity to NCR, makes it one of the • Presence of many water bodies make it nation’ s leading market ideal for hydro power generation Expanding • Also, the state has excellent connectivity • Abundant irrigation, favourable industrial to all its neighboring states geographical and climatic conditions make infrastructure: it ideal for agro-based industries The state has witnesses High literacy rates considerable • State’s literacy average is above the overall Favorable policies and incentives national level development as a • Large benefits offered by state in terms of • Rich pool of talented human resources as result of the tax exemptions, reimbursements on loans, Uttarakhand is home to some of the policies of the state interest incentives, financial assistance, leading educational institutions in the government. subsidies and concessions country
Proactive government • Government is well-known for its efficiency which is veryypgy well reflected in the policies brought out by the state, which address current issues in the administration
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Overall State Competitiveness
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Advan tage Uttarakh and
• Proactive state government and efficient administrative system • Wide range of fiscal and non-fiscal incentives • ElltExcellent connectiv ity itinternall yand to the NtiNationa lCitlCapital RiRegion (‘NCR’) and continua l dldevelopmen t of good transportation infrastructure • Widespread opportunities in sectors like floriculture and horticulture • Presence of rare medicinal herbs, with over 175 species found in the state is an added advantage for the success of agro-based industries • Rich mineral deposits of limestone, soapstone and magnesite among other minerals provide for opportunities in the mining sector
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Advan tage Uttarakh and
• Quality education infrastructure coupled with presence of premier institutes like Indian Institute of Technology (IIT) in the district of Roorkee • Huge pottiltential for hdhydropower generation as a result of vast water resources • Unequalled potential for leisure, adventure and religious tourism • Serene and secure industrial environment • Established industrial estates like Pantnagar, Dehradun, Haridwar, Selaqui and Sitarganj with all necessary infrastructure facilities • Presence of key industrial players like Tata Motors, Mahindra and Mahindra, Ashok Leyland, Hero Honda, Hindustan Lever, and HCL Info. Systems
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Overall state competitiveness
Parameter Uttarakhand Opportunities in type of industry Tourism IT-based industries Tea based industries Food processing industry Pharmaceuticals and biotech Agro based industry Forest based industry Mineral based industry Engineering industry Chemicals industry Handloom and handicrafts sector Policy incentives Setting up and carrying out business
High Medium Low
55 www.ibef.org Uttarakhand | December 2008
Overall state competitiveness
Parameter Uttarakhand
Industrial infrastructure-existing and proposed
Power
Transportation
Industrial estates/areas
STP
EPIP
EPZ
High Medium Low
56 www.ibef.org Uttarakhand | December 2008
DISCLAIMER
This presentation has been prepared jointly by the India Brand Equity Foundation (‘IBEF’) and Ernst & Young Pvt. Ltd. (‘Authors’).
All rights reserved. All copyright in this presentation and related works is owned by IBEF and the Authors. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF.
This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of the Author’s and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.
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