INDIAN STATES Economy and Business Delhi

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CONTENTS

Executive Summary 5

Economic Snapshot 7

The State Economy 9

Infrastructure 10 Social infrastructure10 Access infrastructure 10 Communications infrastructure 12 Industrial infrastructure 12

State Policy 13 Vision & mission 13 Industrial policy 13 Infrastructure policy 14 Tourism policy 14

Business Opportunities 15 Key industries 15 Exports 16 Investment 16 Potential hubs for investment 16

Key Players 18

Doing Business in Delhi 21 Obtaining approvals 21 Cost of business 21 Contact for information 22

A report by PricewaterhouseCoopers Pvt Ltd for IBEF

DELHI PAGE 5

Executive Summary

Delhi is the most prosperous and one of fastest participation in infrastructure development growing economies in India. Its economy grew in the state. at a CAGR of 10 per cent between 1994 and 2003. In addition to being the national capital, Delhi is the Delhi’s per capita income is more than double the principal business and commercial centre in northern national average.The per capita income at current India. It is well complemented by industrial areas prices is estimated to be US$ 1099 in 2003-04 in the National Capital Region such as Gurgaon, as compared to US$ 446.6 at the national level. Faridabad and Noida. Delhi is the second most favoured destination for Delhi is India’s largest consumer market selling the Foreign Direct Investment (FDI) in India, attracting largest number of consumer goods and cars.The state 12.8 per cent of total FDI into India between has the highest concentration of households with 1991 and 2002. an annual income of US$ 110,000. Sectors with a strong presence in Delhi include The physical and economic infrastructure in Delhi retailing & leisure, tourism and apparels.The state is among the best in the country and the state offers significant potential for private healthcare government is proactive in encouraging private facilities and infrastructure development through private sector participation. Industrial Centres in Delhi

DELHI PAGE 7

An Economic Snapshot

Area (sq km) 1,483 Population (2001, million) 13.8 Literacy rate (%) 81.67 Gross State Domestic Product (GSDP) (US$ billion) 17.8 NSDP growth (%) (10 years) 15.38 Per capita income (US$) 1099 Domestic airport Palam International airport Indira Gandhi International Airport Key industries Retailing & leisure Tourism Apparels Industries with growth potential Healthcare Advantage Delhi n A prosperous and fast growing economy driven by services sector n Second most favoured FDI destination in India n Excellent physical, social and economic infrastructure n Biggest consumption centre in India for consumer goods and cars, highest concentration of “super-rich” and “rich” households n Attractive tourist destination with the second highest share of foreign tourists n Potential for developing private healthcare for domestic and international markets DELHI PAGE 9

The State Economy

Being the national capital, Delhi is one of the most of 12.1 per cent. Net State Domestic Product important locations for businesses and investors. (NSDP) at current prices for the year 2002-03 It is also one of the biggest consumer markets in the is US$ 14.6 billion indicating a growth of 11.6 per cent country. Delhi’s National Capital Region comprises over the previous year. Noida, Gurgaon, Faridabad, and Ghaziabad, and it is the principal business and commercial centre Delhi is among the most advanced economies in of north India. India, with the services sector contributing 77 per cent to the state’s domestic product.The sector The State’s Gross State Domestic Product at current grew 12 per cent between 1993-94 and 2000-01. prices increased from US$ 15.9 billion in 2002-03 to US$ 17.8 billion in 2003-04, registering a growth Within this sector, the share of financial, insurance, real estate, and business services, increased from Delhi - Sectoral Contribution to GDP 25 per cent in 1993-94 to 31 per cent in 2002-03. 1% The services sector in Delhi’s economy reported strong growth of 8.5 per cent in real terms during 2002-03 with the communications sector witnessing 22% the highest growth of about 22 per cent in 2002-03. Between 1993-94 and 2000-01, Delhi’s industrial sector grew at 5.7 per cent per annum.

77%

Services Agriculture

Industry Source: Delhi Economic Survey 2003-2004

INFRASTRUCTURE

Social infrastructure and 44 special clinics.At 40,000 beds, about 1700 new beds will be added in Delhi hospitals during 2005-06. Delhi has a population of 16 million (Census 2001). It is the sixteenth most populated state in the Access infrastructure country with a population density of 9,340 persons per sq km, the highest in India. The road network in Delhi is one of the most developed in the country.The total length of roads The population growth rate in Delhi stood in Delhi approximates over 28,508 km. Delhi’s road at 46.8 per cent during 1991-2001, higher than the density is the second highest in the country with national growth rate of 21.3 per cent in the same 1,739 km per 100 sq km, as against the national period, a clear reflection of migration into Delhi average of 74.73. Roads are the principal mode due to availability of economic and employment of transport in Delhi and a number of projects are opportunities in the state. underway to improve the existing road network in the state. During 2003-04, the state government Almost the entire population of Delhi lives in urban completed the construction of 10 flyovers. areas. Literacy rate in Delhi has increased from 75.3 per cent in 1991 to 81.67 per cent in 2001. With the opening of the third corridor in December This is significantly higher than the national literacy 2005, Delhi Metro is being used by more than 0.7 rate of 65.38 per cent. Delhi’s educational network million commuters daily. Delhi is a major railway hub focuses on professional training and provides a talent with four main railway terminals and eight rail pool for the large service sector in the state. Delhi corridors that bring in more than 350 passenger is home to some of India’s best academic institutions trains and 40 goods trains into the metro everyday. such as the Indian Institute of Technology (IIT), one of India’s best-known engineering colleges and The Delhi Metro Rail Corporation (DMRC) is the All India Institute of Medical Sciences (AIIMS), implementing the Mass Rapid Transit System (MRTS); India’s premier medical research centre. a non-polluting and efficient rail based integrated transport system. Over US$ 2.3 billion have been Delhi has 13 universities, deemed universities, 63 invested in the first phase of the project, which will colleges for general education, 81 colleges for cover 65 km. Around US$ 2 billion will be invested professional education, 151 Technical institutes,19 IT in the second phase of the project, which is expected Insitutes and 2 Institutions of national importance. to be completed by 2008.The Delhi government plans The construction of a new engineering college for to strengthen the regional rail network of Delhi with which a sum of US$ 4.36 million has been sanctioned an investment of US$ 500 million.The project will will be started in 2005-06. involve building 62 km of integrated rail-bus corridors to connect different points in Delhi with its suburbs. Delhi has some of the best health facilities in the country with 15,000 doctors, 8000 chemists, 87 Delhi has also attracted private investment for hospitals, 7 primary health centres, 2,500 diagnostic development of transport infrastructure.The Noida laboratories, 993 dispensaries, 209 maternity centres Toll Bridge Company owns and operates the 5.5 km, and sub-centres, 5 polyclinics, 559 nursing homes 8-lane toll bridge that connects Delhi to Noida.The DELHI PAGE 11

Delhi – Trend in installed capacity and project has been executed with an investment electricity generation of US$ 100 million through public private partnership. Similarly, a consortium of Jaiprakash Group and 1360 3000 DS Group is building the 28-km, US$ 120 million 1340 2500 Delhi-Gurgaon expressway.The eight-lane toll 1320 2000 expressway is expected to be operational by 2005. 1300 1500 MW The Delhi government has signed a Memorandum of 1280 1000 Million Units Understanding with Infrastructure Leasing & Financial 1260 500 Services Ltd (ILFS) to develop a 64 km elevated ring 1240 0 1997 1998 1998 2000 2001 2002 road in Delhi through public-private partnership with an investment of over US$ 600 million. Installed capacity (MW)

generation (MU) Source: Delhi Statistical Handbook 2002 Delhi has the second largest airport in the country, which serves as the principal aviation gateway for the northern region.The airport handles over 9.7 million from 6,415 million kWh in 1990-91 to over 9,713 passengers and over 300,000 tonnes of cargo annually. million kWh in 2001-02, indicating an average annual Airports Authority of India (AAI) is in the process growth rate of over 4 per cent. Domestic and of restructuring and modernising Delhi’s international industry represent the largest consumer categories, airport through private sector participation.The followed by commercial categories. selection process for identifying the private player is currently underway.AAI has already received the Expressions of Interest and the selection process Delhi – Composition of electricity consumption is expected to be complete in 2005. 10% Delhi – Growth in air traffic 6% Year 2001-02 2002-03 2003-04@ Passenger 8,499,209 9,096,548 9,745,788 40% Cargo 233,049 276,042 318,360

Source: Airports Authority of India 31%

13% Power Delhi has an installed electricity generation capacity of 994.5 MW. Most of the electricity generated Industrial purposes in the state is through gas (more than 60 per cent). Commerical puposes The remaining electricity is generated through Domestic thermal sources. Public water work and street lighting Others Over 60 per cent of Delhi’s electricity consumption Source: Delhi Statistical Handbook 2002 is met through purchases from other states.The peak demand in Delhi during May 2004 was 3,500 MW On a per capita basis, electricity consumption in Delhi and it is expected to reach 4,000 MW by 2008. stands at 650 kWh per annum, significantly higher than the national average of 355 kWh per annum.The The consumption of electricity in Delhi has increased power distribution in Delhi has been privatized and shown good results.The losses have come down by and domestic investors to locate themselves in the 17% and load shedding in percentage of energy city. Its status as a city-state provides ample business consumption to less than 1% in 2004-05. and investment opportunities, particularly in the services sector. The Delhi government has approved a proposal to set up a 1,000 MW gas based power plant at Delhi has developed 28 industrial estates through the Bawana at an estimated cost of over US$ 800 million. Delhi State Industrial Development Corporation The project is expected to be developed by private (DSIDC) and the Industries Department. corporate players. The Delhi government is building an IT park with Communications infrastructure an initial investment of US$ 16.2 million. It proposes to set up a World Trade Centre to promote Delhi has a well-established telecommunication international trade and commerce at the same park. infrastructure.The number of fixed line telephone subscribers has grown from 0.9 million in 1995 to DSIDC plans to develop industry specific industrial over 2 million in 2002. estates for apparels, gems and jewellery.The proposed gem and jewellery park will spread over 2 acres and Delhi – Growth in fixed wire telephones will be set up at Okhla. It will be developed through Year 1995 1997 1999 2001 2002 private sector participation.The government has Fixed wire acquired 2,100 acres of land to develop new industrial telephones 967 1,370 1,642 1,980 2,066 estates in Bawana and Holambi Kalan.The New (in ‘000) Industrial Estate at Bawana has almost been fully Source: CMIE, Infrastructure Report 2004 developed with the provision of necessary infrastructure. 18360 plots / flats have been allotted The growth in cellular mobile telephony has been to the industrial units. 175 hectares of land for equally strong. Cellular services were launched development of a new industrial area at Bhorgad in Delhi in 1995. By June 2004, the number has been acquired. of subscribers had crossed over 6 million. DSIDC is also in the final stages of acquiring Industrial infrastructure land to set up an integrated freight complex near the international airport in Delhi.The Being the most prosperous economy in the country, freight complex will be a state-of-the-art facility Delhi has benefited significantly from the rapid with integrated activities and will focus on high economic growth in India during the past decade. value goods.

Its superior infrastructure and proximity to the central government is a major attraction for foreign

DELHI PAGE 13

STATE POLICY

Vision & Mission distribution function was privatised through an international competitive bidding process. The Delhi government aims to encourage investment and achieve higher levels of economic development by The state government has committed to provide focusing on the following elements: financial support of over US$ 750 million to the restructuring programme during the transition phase. n Developing Delhi as a “world city” - The The Ministry of Power, Government of India, has government is focused on developing good quality rated the restructuring of the sector in Delhi as the physical, social and economic infrastructure best among all the Indian states. and attracting foreign and domestic businesses to the city Restructuring of government organisations n Progressive governance and policies - The The Delhi government has recognised the need government aims to pursue progressive and to restructure local government organisations. reform-oriented policies to facilitate growth A project to restructure the Delhi Jal Board of business in the state (Delhi’s water & sewerage utility) is currently n Services sector orientation - The government under consideration.The government is planning intends to leverage Delhi’s urban economic to restructure the Delhi Transport Corporation, structure and existing services sector to attract the city’s provider of transport services as well as businesses in service sector such as healthcare, the Municipal Corporation of Delhi, by splitting it hospitality, retail, tourism and IT / ITES, Biotech into three separate organisations.These steps are n Environment friendly industrial development expected to improve the quality of urban services in - The government aims to encourage relocation Delhi and boost its profile as a business destination. of existing industrial units to peripheral areas and permit only “green” industries conforming Rationalisation of property regulation to environmental regulations To facilitate organised and regulated growth of property development in Delhi, the government Industrial policy has reduced the stamp duty on immovable property from 13 per cent to 8 per cent.This is expected To augment Delhi’s economic development, to lead to higher revenue generation for government the state government has undertaken and through better compliance. Effective 2004, implemented various policy initiatives during the property tax structure in Delhi has also been the past few years.These include: reformed to introduce the unit area method of tax calculation.The new system is considered equitable, Electricity sector restructuring progressive and efficient and should lead to better To improve the efficiency of Delhi’s electricity compliance and higher revenue generation. supply, the state government has implemented a comprehensive restructuring plan by which the Implementation of Value Added 9Tax (VAT) erstwhile state-owned utility was split into six Delhi alongwith 21 states, implemented VAT w.e.f. different corporate entities covering generation, March 2005.The revenue to Delhi exchequer have transmission and distribution. Subsequently, the risen by 33% owing to greater compliance.

Environment improvement first pilot corridor for a high capacity bus system Recognising the adverse effects of pollution on public is being taken up and extended work on this corridor health, the Delhi government has taken a number will be started in 2005-06. Modern and fully built of steps to reduce air pollution in the city.The entire CNG propelled 200 non-AC and 25 AC semi-low- public transportation fleet in Delhi has been modified floor / low-floor buses will be added in the DTC to use Compressed Natural Gas (CNG), instead fleet.A feasibility study on the introduction of Mono of petrol and diesel.The government has implemented Rail System in Delhi will be ready by 2005-06. a project to create a citywide natural gas grid to make available CNG to vehicles.The government Tourism policy has phased out the old vehicles from Delhi’s public transport fleet to reduce pollution. It has also Tourism policy for Delhi aims at conservation of city’s ordered relocation of over 26,000 industrial units rich cultural heritage and employment generation. to peripheral areas of the state. Tourism Department has taken up the programme Compared to 1997, carbon monoxide levels in Delhi for restoration of denotified monuments under which have declined by 32 per cent and sulphur dioxide 30 monuments have already been restored and work levels by 39 per cent. In 2003, Delhi won the on four monuments is likely to be completed during US Department of Energy’s Clean City award the current financial year. DTTDC is already working in recognition of the government’s efforts to curb on beautification of various existing lakes in addition environmental pollution. to organising cultural festivals throughout the year to promote tourism. e-Governance The Delhi government has implemented The first phase of new campus of Delhi Institute IT in different spheres of governance.The government of Hotel Management and Catering Technology has has given particular emphasis to adopting IT for reached the completion stage and the Institute will improving citizen services. It has introduced on-line start functioning from this new campus shortly. processing of requests relating to ration cards, The construction of the second phase of the institute election cards, birth and death certificates, vehicle is proposed to be taken up now in consultation with registration certificates and driving licences. DTTDC.The second socio-cultural complex will be set up by DTTDC on BOT basis. Infrastructure policy Bhagidari Government of Delhi has already approved the The spirit of partnership defines Delhi.A pioneer second phase of Delhi Metro. Delhi Government in proactive citizen centric governance, Delhi has has completed construction of 12 flyovers during initiated ‘Bhagidari’, and initiative which encourages this year and work on construction of three more citizens’ proactive participation in governance, growth flyovers is in progress. Construction of a new bridge and development of the city.There is a Social Audit over Yamuna River has been started.The work of Services under this initiative. Delhi is also the for widening of Ring Road from 6 lanes to 8 lanes pioneer city to implement the Right to Information has commenced. Act.These efforts were recognized with United Nations Award for promoting Transparency, Construction of 5 new flyovers and 5 foot over Accountability & Responsiveness in Public Science bridges with the provision of ramp and escalators will in May 2005. be started in 2005-06.Work on construction of the DELHI PAGE 15

BUSINESS OPPORTUNITIES

Key industries and recreational facilities in south Delhi n Mahatta Towers is developing a 200,000 sq ft Retailing and leisure shopping mall in east Delhi A recent study by NCAER reveals that Delhi is the n The Unity Group is developing two shopping cum fastest growing consumer market in India. It is the entertainment complexes in west Delhi, with largest market for high-end consumer durables such an area aggregating 270,000 sq ft as colour televisions, scooters and refrigerators. n Another 900,000 sq ft shopping cum Delhi is also India’s largest car market. entertainment complex is expected to come up in south Delhi with an investment of US$ 80 million. Delhi has been rated as the second most prosperous city in the country and the second Tourism largest market of consumer goods. Over 25 per cent Trade, hotels and restaurants account for 18.7 per of the country’s super rich families live in Delhi. cent of Delhi’s state domestic product, contributing The state also has the highest concentration US$ 1.85 billion in 2002-03. of households with an annual income above US$ 110,000. Its per capita income is the highest Delhi is the second most important destination for in Northern Indian States. foreign tourists. 15.3 per cent of foreign tourists who come to India visit Delhi.The city offers tourists Food, clothing and entertainment account for over a rich mix of architecture, heritage sites, museums, 40 per cent of Delhi households’ discretionary art galleries and religious places, and is home to two spending which provides a huge opportunity of the India’s most important heritage sites, the for retailing and leisure industry. Recently, the Qutab Minar and Humayun’s Tomb. Delhi’s proximity government extended the timings of prime shopping to Jaipur and Agra and advantages like good complexes and plazas to facilitate further accommodation and transport connections make development of retail industry in the state. it an attractive tourist destination. The government is in the process of privatising the recently constructed cultural centre in east Delhi. Delhi has 70 star hotels, which include 24 5-star Delhi has a number of well-established shopping deluxe and 5-star hotels. Delhi’s hotel industry is also areas and complexes and a number of large-scale seeing fresh investment. Eden Park Hotels is investing retail and leisure / entertainment projects are being US$ 22 million in the renovation of Qutab hotel, executed currently. Delhi is projected to have while US$ 34 million is being invested in Kanishka 35 malls over the next few years. hotel.The state government plans to further develop tourism through information centres, pilgrimage tour n The DLF Group, the prominent Indian urban packages and tourist sports complexes. housing development company is developing a 900,000 sq ft shopping cum entertainment Apparels complex in south Delhi which is expected Production of apparels and dressing materials to be completed by 2006 contribute about 38 per cent to Delhi’s industrial n Ambience Developers is developing a 359,657 sq ft output. In 2002-03, apparel production in Delhi stood complex comprising of shopping mall, food courts at over US$ 900 million. Delhi is also an important centre for manufacturing and sourcing of apparels for Delhi has attracted industrial investment in sectors export.A number of large buying houses are located such as apparel and dress material, publishing and in the city. Prominent players such as Wal-Mart, Gap printing of recorded media, food and beverages, and and JC Penny are likely to establish a presence in the radio, television and communication equipment. city as the post-quota regime for textile trade comes into effect in January 2005. Exports

The presence of National Institute of Fashion Delhi is the third largest exporter in India Technology makes available qualified manpower for contributing 6.2 per cent to India’s total exports. the apparel industry in the city.Availability of quality In 2002-2003, Delhi exported goods worth exhibition space and other marketing facilities are US$ 3,514 million. added advantages. Foreign Direct Investment Investment Delhi is the second most favoured destination for Foreign Direct Investment (FDI) in India. Between There were 129,000 industrial units in Delhi with 1991 and 2004, Delhi attracted over US$ 7.8 billion investment of over US$ 560 million till 2001.These of foreign direct investment. Delhi was the second units generated production worth US$ 1.4 billion. most favoured destination for FDI, accounting for Investments in Delhi were US$ 6.9 billion 12.07% of total FDI into India. (Sources CMIE, SIA (April 2005); with new investments at US$ 3 billion newsletters,Annual Survey of Industries. accounting for 2.88% of All India figures. Delhi – Cumulative FDI

Share of industries in net value addition 5000.0 4500.0 4000.0 3500.0 3000.0 2500.0 28% 2000.0 1500.0 US$ billion 30% 1.000 5.00 0.0 1996 1997 1998 1999 2000 2001 2002 2003 8% Source: Secretariat for Industrial Assistance reports 13% 9% 12% The key sectors attracting FDI in Delhi are telecommunication, transportation, electrical Publishing, printing of recorded media equipment including software, services sector Food product and beverages and hospitality. Apparel and dressing material Potential hubs for investment Radio, television and communication equipment Chemical and chemical products Delhi offers several investment advantages Others to a number of emerging sectors such as healthcare,

Source: Annual Survey of Industries, 2002-2003 financial services, IT / ITES and Biotech.

DELHI PAGE 17

FDI - Sectoral break up is projected to grow from US$ 15 billion to over US$ 33 billion in the next decade.The potential for additional business from healthcare tourism 17% is estimated to be US$ 2 billion. Delhi is well placed to garner a substantial part of this potential market. 4%

7% 54% The cost of medical treatment in Delhi is significantly cheaper than in the developed economies. 8% It is estimated that many high-end treatments cost 10% 60-70 per cent less in India than in the United States. Participants from over 55 countries visit Delhi for treatment for various specialities. It has recently Transportation recieved the JSI USA Certification. Electrical equipment including software Telecommunication Apollo Group’s Indraprastha Apollo Hospital has been Service sector recognised as a leading tertiary care facility in North Hotel & tourism India, offering a wide range of super specialty services. Almost 10 per cent of Apollo’s patients are Others Source: Secretariat for Industrial Assistance newsletter,Annual Issue 2002 foreigners. Recently,Apollo introduced an air ambulance service to ferry critically ill patients from as far as 1,000 km. Max Healthcare is expanding its Healthcare hospital network by implementing a 375-bed hospital Delhi’s healthcare infrastructure is one of the best in south Delhi.The Escorts Heart Institute and available in India. Over the years, a substantially higher Research Centre has a 332 bed facility providing level of capital expenditure on the sector has a gamut of specialised medical services. Recently, facilitated its development and Delhi has emerged Escorts has signed a contract with an UK-based as the principal centre for advanced medical care insurance company to treat patients from the in northern India. UK in India.

The number of hospital beds in Delhi increased from Biotech 23,000 in 1995 to over 40,000 in 2005 with the Yes! Bank has been appointed as consultant private sector accounting for almost 40 per cent for developing a Biotech Park by DSIDC. of these.The private healthcare market in India

PROFILE OF KEY PLAYERS IN DELHI

Ansals Group by the Apollo Hospitals Group, jointly with the The Ansals Group is a premier property development Government of New Delhi. It is a 695 bedded company building commercial and residential areas. hospital, with the provision for expansion Ansals remain the pioneers and introducers of the to 1000 beds in future. concept of high rise commercial complexes in Delhi. The Group has marched on an unhindered and Bharti Group unabated path in changing the skyline of not only The Delhi based Bharti group owned by Mittals Delhi, but subsequently of several other cities established in 1985 has been a pioneering force of India and abroad. Ansal Group comprises in the telecom sector with many firsts and of 35 companies.The main flagship companies of the innovations to its credit.The group is the first mobile group are Ansal Properties & Industries Ltd,Ansal service in Delhi, first private basic telephone service Housing & Construction Ltd. and Ansal Buildwell Ltd. provider in the country, first Indian company Today Ansal Group’s yearly turnover is around to provide comprehensive telecom services outside US$ 74.5 million and its multiple projects in hand India in Seychelles and first private sector service exceed US$ 680 million. provider to launch National Long Distance Services in India. Bharti Enterprises also manufactures and Amway India exports telephone terminals and cordless phones. Amway India is a wholly owned subsidiary Apart from being the largest manufacturer of of Amway Corporation, USA.Amway Corporation telephone instruments, it is also the first telecom is a 42-year-old company, and is among the largest company to export its products to the USA. direct selling companies in the world. It has a presence in 80 countries & territories. Established DLF Group in 1995,Amway India commenced commercial DLF Group is a leading name in India’s real estate operations on May 5th, 1998.Amway has invested industry. The Group’s range of portfolio spanning in excess of US$ 32 million in India. across the residential, commercial, retail, entertainment complexes reflects an expertise Apollo Group gathered over a period of six decades. Apollo Hospitals Group is the acknowledged leader in bringing super specialty world-class healthcare DLF Universal Ltd is a flagship company of the DLF to India. It is presently the largest integrated Group, a Delhi-based real estate developer. DLF has healthcare company in Asia. Major thrust fields developed 21 urban colonies in and around Delhi. of activities of the group consist of Hospitals and Currently, DLF is building a 900,000 square feet Clinics, Hospitals Consultancy, Information Technology shopping cum entertainment complex south Delhi. including internet based technology,Telemedicine, DLF has also submitted an expression of interest Education and Training,Virtual Medical University, to modernise the Delhi Airport.The DLF Centre Home Healthcare and Pharmacy Retailing. in the heart of New Delhi, is an area still reminiscent for its old world charm. DLF Retail, in association Indraprastha Apollo functioning from July 1996 is the with DT Cinemas, the group’s entertainment unit, largest corporate hospital outside the United States. is developing shopping arcades and multiplexes. It is the third super specialty tertiary care hospital set

DELHI PAGE 19

Escorts Group consolidated turnover of US$ 18.6 billion. HET Escorts is a leader in the cardiac care segment operates one of the four cellular mobile telephony in Delhi, with two of its hospitals catering to patients networks in Delhi. In August 2004, HET recorded with heart ailments.The company is expanding its 1.3 million subscribers. operations in these two hospitals from a total of 370 beds to about 570 beds.The company has IBM identified three core businesses that will be its focus IBM has been present in India since 1992.Today, areas as part of its plans to restructure its operations. the company has established itself as one of the These include cellular telephony, healthcare and leaders in the Information Technology (IT) Industry. agri-machinery.The Escort Heart Institute and India Research Laboratory, Delhi, one among Research Centre located in Delhi is a leading centre 8 facilities worldwide located in the sprawling campus of excellence in the fields of cardiac surgery, of Indian Institute of Technology, Delhi, has research interventional cardiology and cardiac diagnostics. initiatives underway covering areas like e-Commerce, Its state-of–the-art infrastructure and equipment Knowledge Management, Bio-Informatics, Grid is the best in India.The institute has 332 beds, Computing,Autonomic Computing etc. 9 operating rooms and carries out 15,000 procedures every year. Marubeni Corporation Marubeni, the Japan based trading house, has the Fortis Healthcare headquarters of its Indian operations in Delhi. Fortis Healthcare is a part of the Ranbaxy group, In India, Marubeni is involved in trading in textiles, India’s leading pharmaceutical company. Fortis chemical and machinery. It has made investment is in the process of developing a wide network in the electricity, steel and oil & gas sectors. Marubeni of medical facilities in Delhi. Fortis has taken over the was also part of the consortium that constructed management of Jessa Ram Hospital, one of the leading the Delhi-Noida bridge project. private hospitals in west Delhi. Max India Fortis plans to set up a hub hospital, a high-end super The core business of Max is healthcare and life specialty hospital on the west Delhi plot aimed insurance. Other businesses include IT, clinical studies, at attracting patients from overseas countries. telecom and specialty plastic products; healthcare The proposed Delhi hospital will be the third (Max Healthcare), Life Insurance (Max New York Life super specialty hospital project of Fortis. Insurance), IT / IT enabled services (Max Ateev, Max HealthScribe, Comsat Max), Clinical Studies (Neeman Hindustan Lever Ltd (HLL) Medical International). Max Healthcare has a multi- Hindustan Lever Ltd is India’s largest Fast Moving specialty hospital in North Delhi, two Max clinics and Consumer Goods company, touching the lives of two a Max medical centre across Delhi. Max is the first out of three Indians with over 20 distinct categories private healthcare clinic to receive a US$ 20 million in Home & Personal Care Products and Foods & loan from Asian Development Bank. Max has invested Beverages. HLL is also one of the country’s largest US$ 100 million to develop two other hospitals exporters; it has been recognised as a Golden Super in south and east Delhi.The hospital in south Delhi Star Trading House by the Government of India. is a 375 bed facility.The hospital in east Delhi is intended to be a 134 bed super-specialty facility. Hutchison Essar Telecom (HET) Max New York Life is a joint venture between Max Hutchison Essar Telecom is a part of the Hutchison India Ltd and New York Life, a Fortune 100 company. Wampoa group, a Hong Kong based corporation with It is one of India’s leading insurance companies. Headquartered in Delhi.The company recorded major Indian towns and cities.The network currently a 122 per cent growth in its premium income comprises of 2000 dealers & distributors, 40 Sony in its financial year ending March 2004. World outlets, 60 Sony Exclusives and 12 direct branch locations as on October 2004. Sony Mitsui India Corporation produces Consumer Audio and Video Mitsui India is a subsidiary of Mitsui & Co., Japan. products. Sony is also an industry leader in recording Mitsui India has its headquarters in Delhi. Mitsui’s media & storage devices such as Micro Vaults. business activities in India include export of iron ore and finished iron and steel products, textiles, marine Spectramind products to Japan and other parts of the world. Mitsui Wipro Spectramind provides a broad range has also been successful in finding a market for the of services from customer relationship management, export of chemicals from India. Mitsui has also played back office transaction processing to industry specific a special role as project organizer for a varied solutions.Wipro Spectramind was awarded the “top number of projects in the Power Sector, Steel call centre company” award at the Voice & Data Industry, Port Development, and Refinery Projects. awards, 2002 and customer performance centre (COPC) certification in 2003. Reliance Energy Ltd Reliance Energy Ltd (REL) is India’s leading integrated Tata Power Ltd electricity utility company in the private sector. Tata Power is a premier integrated power company REL generates and distributes electricity across with an installed generation capacity of 2,278 MW. a number of states in India. REL owns two electricity The company has operations across India and in distribution companies in Delhi with an aggregate various Middle-East countries. In Delhi,Tata Power consumer base of 1.7 million in south, central and controls North Delhi Power Ltd, the electricity eastern parts of Delhi, covering a population of over distributor for north and north-west areas of Delhi. 7 million. REL will invest over US$ 660 million over the next three years to modernise the electricity TCS distribution network in Delhi. Tata Consultancy Services (TCS) is among the leading global information technology consulting, services and Shell India business process outsourcing organisations, offering Shell India is a part of the Royal-Dutch Shell group, services to clients across 55 countries. Pioneer one of the largest energy companies in the world. of the flexible global delivery model for IT services, Shell India has its headquarters in Delhi.The company TCS focuses on delivering technology-led business is involved in a range of energy projects in India, with solutions to its international customers across committed investment of US$ 750 million. Shell’s varied industries. prime investment in India is the construction of a liquefied natural gas (LNG) terminal. Shell India has interests in lubricants and petrochemicals. Shell is also planning to commence fuel retailing in India in the near future.

Sony India Sony Corporation, Japan set up Sony India in 1995 as a 100 per cent subsidiary. Since then, the company’s sales and distribution channel has penetrated all the

DELHI PAGE 21

DOING BUSINESS IN DELHI

Obtaining approvals

An indicative list of approvals with timeframe for setting up business in Delhi

Department Agency Timelines

Industries Directorate of Industries Registration of small scale industries: 30 days

Incentives Export Promotion Council Registration with export council: 7 days

Revenue Commissioner of Industries Grant of extension for completion of construction on plot/permission for leasing/ sub-letting: 30 days

DSIDC/DFC DSIDC Sanction of loan: 30 days DFC

DSIDC designated as nodal agency for all Investment flows into Delhi.

Cost of setting up business

An indicative table on cost of setting up business in Delhi

Indicator Value (in US$)

Industrial land (per sq m) 47.70 - 95.40 Office space rent (per sq ft per month) Central Business District: 1.14 - 3.25 Secondary Business District: 0.76 - 0.95

Residential rent (for a 2,000 sq ft house, per month) 574.46 - 765.95

5-star hotel room (per night) 50 - 200 per night

Electricity (per kWh) 0.09

Water (per 1,000 litres) Commercial: 0.31 Industrial: 0.42

Note: Exchange rate used is INR 47 per US$

Contact for information Information on markets and opportunities for investment in Delhi can also be obtained from Information on investment opportunities can be Confederation of Indian Industry (CII), which works obtained from the following offices in the state. with the objective of creating a symbiotic interface between industry, government, research bodies and Directorate of Industries domestic and international investors. Industries Department, Udyog Sadan, Confederation of Indian Industry (CII) Plot No 419 State Office Functional Industrial Estate, Plot No 249 F, Udyog Vihar Patparganj Phase IV, Sector 18 Delhi - 110092 Gurgaon 122 015 INDIA 110 092 INDIA Tel +91 11 22157011 Tel +91-124-4014072 Fax +91 11 22157022 Fax +91-124-4014070 Email [email protected] Delhi Electricity Regulatory Commission (DERC) Web www.ciionline.org 33 KV, C Block Shivalik Malviya Nagar Delhi 110 017 INDIA Tel +91 11 26673608 Fax +91 11 26673608 Web www.dercind.org

Department of Information Technology (DIT) Room no 903, 9th level Delhi Secretariat Delhi INDIA Tel +91 11 2339 2254 Fax +91 11 2339 2077

Delhi State Industrial Development Corporation (DSIDC) N Block Bombay Life Building Connaught Circus New Delhi 110 001 INDIA Tel +91-11-23356581 Fax +91-11-23710666 Web www.dsidc.org DISCLAIMER

This publication has been prepared for the India Brand Equity Foundation (“IBEF”). All rights reserved. All copyright in this publication and related works is owned by IBEF. 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 publication), modified or in any manner communicated to any third party except with the written approval of IBE F. This publication is for information purposes only. While due care has been taken during the compilation of this publication to ensure that the information is accurate to the best of IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. IBEF neither recommends nor endorses any specific products or services that may have been mentioned in this publication and nor does it assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this publication. IBEF shall in no way, be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this publication. The India Brand Equity Foundation is a public-private partnership between the Ministry of Commerce & Industry, Government of India and the Confederation of Indian Industry.The Foundation’s primary objective is to build positive economic perceptions of India globally.

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