Investment Climate in Uttarakhand
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Investment Climate in Uttarakhand Investment Climate in Uttarakhand Contents Economic and Demographic Profile 1 Economic Profile 1 Demographic Profile 2 Physical Infrastructure 2 Power 2 Roads 3 Railways 3 Airports 3 Telecom 3 Social Infrastructure 3 Health 3 Education 4 Industrial Profile 5 Land Availability 6 Industrial Land 6 Agricultural Land 6 Manpower Availability 7 State Policies and Incentives 7 Investments in the State 7 Looking Ahead 8 Annexure : Policies 9 • All data is at constant (2004-05) prices unless explicitly stated otherwise • GSDP stands for Gross State Domestic Product • CSO data accessed on 18 October, 2012 EXECUTIVE SUMMARY Uttarakhand, carved out of the hill region of Uttar Pradesh in 2000, is situated in the foothills of the Himalayan mountain ranges, sharing a border with Nepal in the east and China (Tibet) in the north. The state has made rapid economic progress, emerging as one of the fastest growing states in the country. The growth has been led by manufacturing, construction and the services sector. Uttarakhand offers diverse agro-climatic zones and great biodiversity in terms of flora and fauna, making it an attractive destination for high value-added niche agro-based industry, floriculture, and horticulture. The state also offers tremendous opportunities in tourism, owing to its pristine natural beauty and presence of many spiritual tourism destinations. Advantage Uttarakhand: • Well-developed industrial infrastructure, including Integrated Industrial Estates, sector parks and well-developed industrial estates in private/joint sector • Focus on Public Private Partnerships especially for industrial infrastructure, tourism, healthcare and education • Huge tourism potential- pilgrim tourism, nature & eco-tourism and adventure tourism • Abundant water resources favouring hydro-power generation with a potential of 27,000 MW power, out of which only about 3,618 MW has been harnessed so far • Home to leading academic & research organisations, providing a strong foundation for the setting up of knowledge based industries in the state • Substantial fiscal incentives, specially for projects in the hill areas • The state is close to the National Capital Region, a hub of trade and commerce. It also has good connectivity with the neighouring states 1 Economic & Demographic Profile Economic profile Uttarakhand is one of the fastest growing economies in the A major share of the state’s GSDP is dependant on the services country. The GSDP of Uttarakhand was Rs 609 billion in 2011- and secondary sector, which have a share of 52.6 and 36.4 percent 12 against Rs 248 billion in 2004-05, registering a CAGR of 13.7 respectively during 2011-12. The services sector registered a CAGR percent1. of 14.7 percent, while the secondary sector grew at a CAGR of 18.7 percent during 2004-05 to 2011-12. Figure 1: Growth of GSDP of Uttarakhand Figure 2: Key Economic Indicators 700 21 18.1 18.3 609 Key Economic Indicator (2011-12) Value 600 555 18 14.3 507 500 13.6 15 GSDP Rs 609 billion 428 380 400 12 Growth in GSDP 9.7 percent 322 12.7 9.6 9.7 283 300 9 In billion In percentIn Per capital income Rs 52,125 200 6 National Per capita income Rs 37,851 100 3 0 0 Source: CSO 06 07 08 09 10 11 12 - - - - - - - 2005 2006 2007 2008 2009 2010 2011 Source: CSO 1 CSO 2 The growth of the economy has been largely driven Physical Infrastructure by manufacturing, construction, transport, storage & communication, trade, hotels & restaurants, financial services Infrastructure forms the backbone of any economy. In this regard, and real estate. Manufacturing recorded the highest CAGR of 25.1 Government of Uttarakhand is taking the requisite measures for percent, which is one of the highest in the country. the development of its infrastructure. Figure 3: Contribution of different sectors towards the economy of Uttarakhand Power 2004-05 2004-05 2011-12 The state has an installed power generation capacity of 2,557 MW, comprising of 1,423 MW under state utilities, 719 MW 23.5 11 under central utilities and 415 MW under private sector. Of the 23.5 total installed capacity in the state, the contributions from various 3 49.5 sources are : 49.5 52.6 36.4 27.0 • Hydro power – 78.1 percent 27.0 • Thermal power – 13.7 percent • Renewable energy sources – 7.3 percent • Nuclear power – 0.9 percent Primary Secondary Services Primary Secondary Services Primary Secondary Services The state is encouraging setting up of hydro projects especially Source: CSO small hydro projects in PPP and private sector. State-owned Uttarakhand Power Corporation Limited is Demographic profile responsible for power distribution and Power Transmission Corporation of Uttarakhand Limited is responsible for The population of Uttarakhand is 10.1 million. The decadal growth transmission. Uttarakhand Jal Vidyut Nigam Limited oversees the rate for the state was 19.2 percent as compared to the national state’s hydro power generation. growth rate of 17.6 percent. The density of population of the state Figure 5: Peak demand – supply position in the state is 189 persons per sq km.2 Figure 4 : Key demographic indicators Key Indicators (2011) Values Population 10.1 million Population size (Males) 5.2 million Population size (Females) 4.9 million Population size (Urban) 3.1 million Population size (Rural) 7.0 million Density of population ( persons per sq km) 189 Literacy rate 79.6 percent Source: CEA Male literacy rate 88.3 percent Female literacy rate 70.7 percent Figure 6: PPP projects in pipeline in power sector Sex ratio (females per 1000 males) 963 Project Name Location Value (Rs Status million) Source: Census 2011 (Provisional) Sarju Valley Hydel Project Multiple 430 Being Implemented Eastern Ramganga Valley Multiple 745 Being Hydel Project Implemented Kosi Valley Hydel Project Multiple 930 Pipeline Interlinking of Micro-Hydel Kapkot 742 Pipeline Projects and the Grid Source: Uttarakhand Public Private Partnership Cell 2 Census 2011, Provisional 3 Central Electricity Authority, August 2012, including allocated shares in joint and central sector utilities 3 Roads Roads are the prime means of transport in a state like Uttarakhand Efforts are underway to operationalise the airstrips at Naini Saini in with large parts of the state under hilly terrain. During the last Pithoragarh, Gauchar in Chamoli and Chinayalisaud in Uttarkashi. decade, not only has the road length increased substantially, the These airstrips will provide vital air connectivity to some of the quality of the roads has also improved. remotest locations of the state, giving a major boost to tourism and other developmental activities. The total length of roads in Uttarakhand is 36,614 km4. The total length of National Highways passing through the state is 2,042 km. Telecom Figure 7: Key Road Network Uttarakhand has 54.3 million subscribers and an overall Road Type Road Length (in km) teledensity of 60.96. National Highways 2,042 Figure 9: Key Telecom Indicators State Highways 3,788 Key Indicators Value Major District Roads 3,322 Other District Roads 2,965 Subscriber base 54.3 million Rural Roads 13,282 Wireless subscribers 53.6 million Source: Uttarakhand at a Glance, 2011- 12 Wireline subscribers 0.8 million Figure 8: PPP projects in road sector (2012) Teledensity 60.9 Urban Teledensity 161.3 Project Name Location Value (Rs Status Rural Teledensity 31.9 million) Source: The Indian Telecom Services Performance Indicators (January March 2012); TRAI Kosi Bridge at Ramnagar Ramnagar 260 Being Implemented Subscriber data pertains to Uttar Pradesh (West) which also includes Uttarakhand Teledensity data is for UP (East) and UP (West), UP (West) includes Uttarakhand Hindon Expressway Dehradun 7,000 Pipeline Connection to Dehradun & Haridwar Source: Uttarakhand Public Private Partnership Cell Social Infrastructure Railways Health The total length of railway network in Uttarakhand is 345 km.5 Uttarakhand has a good network of healthcare system. Major stations include Dehradun, Haridwar, Roorkee, Kotdwar, Kashipur, Udhamsingh Nagar, Haldwani, Ramnagar and Figure 10: Key Health Infrastructure in the state Kathgodam. Institutions Number The 125 km proposed Rishikesh Karnprayag rail link is a key link for the state. It will pass through some of the most challenging hill District Level Hospitals 12 terrain traversing through Dehradun, Tehri Garhwal, Pauri Garhwal District Female Hospitals 6 and Chamoli districts, connecting Rishikesh to many pilgrimage Base Hospitals 3 spots including Devprayag, Rudraprayag and Karnprayag. The rail Primary Health Centres/Additional 257 link will provide a major boost to spiritual, nature and adventure PHCs tourism in the Garhwal region of the state. Community Health Centres (CHCs) 55 Airports State Allopathic Hospitals 322 Joint/ Women Hospitals 41 The state has 2 airports. The largest airport is the Jolly Grant Health Posts 9 Airport in Dehradun which is well connected to many cities Beds in Government Hospitals 8,193 through Delhi. The state government is also exploring connectivity to Kathmandu, Nepal. The second airport is located Source: Uttarakhand at a Glance, 2011-12 in the Kumaon region of Pantnagar. Efforts are on to expand this airport so that larger planes can also land. 4 Uttarakhand at a Glance, 2011- 12 5 Indian Railways Year Book, 2010-11 6 Teledensity data is for UP(East) and UP(West); Subscribers data pertains to UP (West) which also includes Uttarakhand; The Indian Telecom Services Performance Indicators (January-March 2012), The Telecom Regulatory Authority of India 4 In addition, a total of 548 Ayurvedic hospitals/dispensaries Uttarakhand has some of the best boarding schools in the country including Unani hospitals are functioning in the state. The state especially in and around Mussoorie, Dehradun and Nainital. also has 107 Homeopathic hospitals/dispensaries.7 Dehradun, in fact, is an important centre of education in north India. To augment its healthcare infrastructure, the state government has initiated a number of health projects with private sector There has been widespread development of higher education in participation.