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IBEF HARYANA.Indd

IBEF HARYANA.Indd

Investment Climate in Haryana

www.ibef.org Published by HARYANA PAGE 3

Table of Contents

Table of Contents Executive Summary ...... 4 Haryana - Select indicators ...... 5 Economic Overview of the State ...... 6 Economic performance...... 6 People - Economic prosperity ...... 6 Industrial performance ...... 7 Industrial centres ...... 7 Investments...... 8 Haryana’s contribution to ...... 9 Labour Force ...... 9 Infrastructure ...... 10 Industrial infrastructure ...... 10

Educational and Training infrastructure ...... 11 Medical & Health Care Facilities ...... 11 Infrastructure for savings and borrowings...... 12 Physical infrastructure ...... 12 Key Nodal Agencies ...... 13 Policy Framework ...... 15 Industrial Policy 2005 ...... 15 Information Policy 2000 ...... 15 Key industries and players ...... 16 Agro-based industries ...... 16 ...... 16 Automobiles & Auto Components industry ...... 17 Petro-chemicals industry ...... 18 Real Estate & industry ...... 18 & location-based ...... 19 IT/ITES and Electronics industries...... 19 Doing Business in Haryana ...... 21 Contact Information ...... 22 Appendix ...... 22

A report by ICRA for IBEF Executive Summary

Regulatory Framework

Investment Climate Physical & Resources/Input of a State Social Infrastructure

Incentives to Industry

‘Investment climate’ is a broad concept, encompassing all the the country. It was the fi rst to introduce Value Added Tax (VAT), factors affecting business decisions, including profi tability and way back in 2003. where to locate and other units. A good investment climate provides opportunities and incentives for fi rms to invest Its vibrant city, Gurgaon, is emerging as a major hub for productively and create jobs, thus playing a key role in ensuring the (IT) industry. The state is strategi- sustained growth and poverty reduction. cally located close to the National Capital Territory of Delhi and about a third of its area falls within the National Capital Region Factors infl uencing investment climate include: (NCR). The Indira Gandhi International Airport is a 20-minute drive from Gurgaon. • Availability and ease of use of factor inputs such as land and labour; Haryana is a leading hub, accounting for more • Availability of adequate physical and social infrastructure, such than a 50 per cent share in the production of passenger cars, as power, telecom, urban infrastructure, water supply, hospi- motorcycles and scooters, and more than a 25 per cent share tals, and educational institutions; in the production of tractors, bicycles and sanitary-ware in the • Governance and regulatory framework in terms of rules and country. The state is home to Maruti Udyog Ltd, ’s largest regulations governing entry, operation, and exit of fi rms, sta- passenger car manufacturer, and Hero Honda Ltd, the world’s bility in regulation, integrity of public services, law and order largest manufacturer of two-wheelers. Large multinational com- and investment facilitation; and panies like Honda, Alcatel, GlaxoSmithKline, IBM, Tata Consul- • Provision of incentives and access to . tancy Services and Ericsson have invested in the state.

Haryana ushered in the ‘Green Revolution’ and the ‘White Revo- Well-developed infrastructure facilities, a proactive administra- lution,’ with its contribution to and milk production, tion, investor-friendly policies, skilled manpower and cordial respectively. The state is also strong in food grain production labour relations provide a favourable investment climate for and horticulture. has a huge potential in the rural attracting domestic and foreign investment. Adequate industrial areas and is being promoted as a self- option. The infrastructure exists in the form of industrial parks, industrial state has consistently been leveraging its large agricultural base model townships, industrial clusters, industrial growth centres to establish a strong position in agri-business. As a result, food and most importantly special economic zones (SEZs). processing is fast becoming a thrust area for leading corporates. Haryana has the highest number of SEZs in the country – eight The economy recorded a compound annual growth rate of notifi ed, 29 formally-approved and 28 SEZs that have got in-prin- 12.73 per cent between 1999-00 and 2005-06, when it touched ciple approvals. ’ $8.89 billion multi-product $22.37 billion. Exports added up to $5.5 billion in 2005-2006. SEZ at Jhajjar is so far the country’s biggest. Specialised industrial Haryana is one of the biggest trade and consumption centres in estates like the Promotion Industrial Park, Food Parks HARYANA PAGE 5

and the Gems and Park assist in improving operational Haryana - Select indicators effi ciency of specifi c sectors. Capital Chandigarh The state’s Industrial Policy 2005 aims at developing economic Land and Climate 44,212 hubs and encouraging private in the development of Geographical Area (sq km) infrastructure. It focusses on economic activities where the state Climate Summer season enjoys comparative advantage – for instance food processing (April to June) Rainy season and IT – and developing the services sector (, , (July to September) , health care services and fi nancial services) to drive Winter season growth and to create an investor-focused approach in adminis- (October to March) trative processes. This will bring about effi ciency and transparen- cy and strengthen the grievance redressal mechanism. The state’s Average Rainfall in 2004 455 IT Policy, SEZ Act and e-Governance initiatives are committed to (in mm) position Haryana as a potential hub for investment and industrial Number of districts 19 opportunities. Number of towns (as per 81 2001 Census) The state was the fi rst to set up its own Foreign Investment Number of inhabited villages 6,759 Promotion Board. Now called the Investment Promotion Cen- (as per 2001 Census) tre, it plays an aggressive promotional role and provides techni- People cal support to appraise investment proposals from foreign as Main religion Hinduism well as domestic companies. The state has a single window clear- State Language Hindi ance mechanism in place to provide assistance to entrepreneurs Population (in million) 21.145 and reduce procedural requirements. Composite application (2001 Census) forms have been introduced to provide approvals and clearances Share of urban population 28.9% required at the time of establishment and operation of a unit. State’s share in India’s 2.05% population The state has a fairly well developed education system that sup- plies skilled workers to industry. The banking and fi nancial ser- Population density 338 (per sq km) vices industry has a strong network across the state to facilitate Sex ratio 861 savings and disperse credit. The state also ranks well on social (females per 1000 males) indicators like literacy and health. Literacy rate 67.9% Birth rate 25.1 Haryana is at the forefront of attracting investment in the coun- (per thousand persons) try. Since its Industrial Policy was announced in 2005, the state Death rate 6.6 has witnessed an investment fl ow of $5 billion. Projects involving (per thousand persons) investments of more than $11.7 billion are in the pipeline, which Infant mortality rate (per 42 also include foreign direct investment of $300 million. Accord- thousand live births) ing to estimates of the Centre for Monitoring Indian Economy (CMIE), outstanding investments in Haryana as of quarter ended (Source: UNDP Human Development Report 2004) March 2007, added up to $55.23 billion, of which almost 65 per cent is already under implementation. Industry

Maximum investments have come into the construction sec- Key industries having business potential Agro-based industries, tor, followed by electricity, manufacturing and services. The rise , , Electronics & Communication, IT & in investments in construction activities has been triggered ITES, Automobiles and automotive components, Real estate. by the real estate sector, particularly housing complexes, and construction. In the manufacturing space, food processing, textiles and automotive and auto components have attracted the maximum investments.

Economic Overview of the State

With one of the highest per-capita incomes, Haryana is amongst The economy of Haryana has recorded a compound annual the richest states in India. The state covers 1.37 per cent of the growth rate (CAGR) of 12.73 per cent between 1999-00 and total geographical area, and accounts for less than two per cent 2005-06. The gross state domestic product (GSDP) touched of India’s population. The state played a signifi cant role in usher- $22.37 billion in 2005-06. All three sectors of the economy ing in the ‘Green Revolution’. It is self-suffi cient in food produc- - primary (comprising agriculture and , and tion and the second largest contributor to India’s central pool , fi shing, and quarrying), secondary (comprising of food grains. It is estimated that 86 per cent of the state’s area manufacturing, construction and electricity, gas and water supply) is arable, out of which 96 per cent is under cultivation. About and tertiary (comprising trade, and , transport, 75 per cent of the cultivated area is under irrigation. The ‘White storage and communication, fi nancial services, real estate and Revolution,’ a result of the increased emphasis on livestock farm- related services, public administration and other services) - have ing, followed the Green Revolution in the 1970s. Today, the state contributed to the growth, with the last two recording signifi - has the second-highest per capita availability of milk per day. cant increase in contribution over the years.

On the industrial front, Haryana has made remarkable strides. The structural composition of the state’s economy has trans- The state is a leading producer of automobiles and automotive formed over the years. The primary sector saw its share fall to components. It has more than 1,100 big and medium industrial 22.1 per cent in 2005-06 from 31.9 per cent in 1999-00. But 70 units, prominent among them are Maruti Udyog, Hero Honda, per cent of the state’s population is engaged in agriculture. Escorts, Sony, Whirlpool, Bharti Telecom, Perfetti Van Melle, Benetton, TDT , Modi Alcatel and Carrier Aircon. Out of The share of the secondary sector in the GSDP increased from about 250 large and medium original equipment manufacturing 30 per cent in 1999-00 to an estimated 34.7 per cent in 2005- units in the country, about 50 are located in Haryana. The state 06. This is attributable mainly to the contribution of manufactur- exported $5.5 billion worth of and services in 2005-2006. ing with increased industrial activity in sectors like automobile It is among the most favourable destinations for investment and auto components, light , textiles, sanitary-ware, (both domestic and international) in the northern region of the galvanised iron pipes, gas stoves, construction material and scien- country. tifi c instruments.

Economic performance The tertiary sector accounted for the highest share in the GSDP at 43.2 per cent in 2005-2006, a signifi cant rise from 38.1 per Haryana’s GSDP (US$ billion) cent in 1999-00. The growth was driven mainly by the IT and ITES industries, with Gurgaon emerging as the IT/ITES hub of

2000-06 22.37 the state.

2000-05 19.79 People - Economic prosperity 2000-04 18.04

2000-03 15.27 Haryana ranks third amongst Indian states in terms of per capita

2000-02 13.22 income, which was estimated at $862.9 in 2005-06, signifi cantly higher than the all-India per capita income at $573.10. The an- 2000-01 11.79 CAGR 12.73% nual income of households is an important indicator of eco- 1999-00 10.90 nomic prosperity. A comparison of of households 0 4810 12 16 20 22 26 by various income categories in Haryana vis-à-vis the all-India Source: Economic Survey of Haryana, 2007 fi gures shows that the share of households in higher income categories in Haryana is more than the all-India fi gure. This holds Percentage distribution of GSDP true for urban as well as rural households, which supports the fact that the state also has the least gap between rural and urban 2005-2006 23.3% 32.4% 44.3% prosperity in the country. 1999-2000 31.9% 30.0% 38.1% For example, 30.1 per cent of Haryana’s urban households and 3.70% 8.10% 11.80% 10.5 per cent of rural households fi gure in the highest income n Primary Sector n Secondary Sector category of $6,667 and above, as compared to only 22.7 per n Tertiary Sector cent and 4.6 per cent, respectively, at the all-India level. Only HARYANA PAGE 7

Distribution of Households by Income (%) Contribution of small, medium and large industries Urban Parameter Large & Small scale US$ 6667 30.1 Fixed investment 200 870 22.7 (US$ billion)

06010 20 30 40 50 Employment 1,212 80,000 (‘000 number) n Haryana n India Source: Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC) Source: The Market Skylilne of India 2006 by Indicus Analytics

3.8 per cent of Haryana’s urban households fi gure in the lowest Industrial centres in Haryana income category of less than $1,667, as compared to 12.1 per cent of all-India urban households. In the rural areas, 13 per cent The main industrial centres in Haryana are Gurgaon, Panipat and of Haryana’s households fi gure in the lowest income category, as Faridabad compared to 46.8 for all-India rural households. Gurgaon is strategically located on the Delhi-Jaipur national Another indicator of the economic well being of the people highway, in close proximity to the Indira Gandhi International is the of physical assets like and consumer Airport in New Delhi. Its connectivity and well-developed infra- electronics. Assets like four-wheelers, two-wheelers and televi- structure has attracted many high-value projects involving for- sion sets are indicators of consumer aspirations. A comparison eign collaboration. There are more than 400 large- and medium- of asset ownership by households indicates a higher ownership scale units and around 8,000 SSI units in Gurgaon. Investments of these assets in Haryana vis-à-vis the national level. have come in automotive, automobile parts, telecommunication equipment, electrical goods, software development, hardware, Industrial performance in Haryana sports goods, rubber products, textiles, light engineering goods, pharmaceuticals, food items, consumer durables, footwear and Haryana has shown robust industrial performance over the chemicals. years. The state accounts for two-third of passenger cars, 50 per cent of tractors, 60 per cent of motor cycles, 50 per cent of re- Panipat is known for its handloom industry and is the biggest frigerators and 25 per cent of sanitary-ware manufactured in the centre in the country for producing shoddy and low-priced country. Small-scale industry (SSI) units, which account for nearly blankets; it also exports durries, made-ups, throws and 25 per cent of all production in the state, provide repair services mats. Samalkha, a smaller town near Panipat, is known for its for capital goods and are involved in the manufacture of metal and supply of agriculture machinery. Most of the products, and fur products, food items and wooden units in the region are small-scale in nature. An Inland Container . SSI units in Haryana account for 20 per cent of the Depot (ICD) has been developed to promote exports. Indian country’s total exports of scientifi c instruments, meet 60 per Oil Corporation (IOC) also operates one of the most modern cent of the demand for ammunition boxes of the defence forces public sector refi neries in the city. and 60 per cent of the woollen blanket needs of the Indian Army, and produces the largest number of electrical mixers and gas Faridabad, which forms a part of the NCR, is well-connected stoves in the country. by road and rail. There are about 15,000 industrial units in the district, with a combined turnover of $33.34 billion. The main industries in Faridabad are light engineering goods, metal goods and automotive components. Many well-known companies like Whirlpool, Goodyear, Larsen & Toubro, Asea Brown Boveri, Breakup of Invesments by sector Investments in Haryana

0.2% Haryana is one of the preferred investment destinations in the country. According to estimates by the CMIE, outstanding invest- 8.2% ments in Haryana as of quarter ended March 2007 were to the 11.3% tune of $55.23 billion, of which almost 65 per cent is already under implementation. The maximum investments have come into the construction sector, followed by electricity, manufactur- 63.1% ing and services. The rise in investments in construction activi- 17.2% ties has been triggered by large-scale real estate development, particularly housing complexes.

Investments in road construction include about 21 projects, which are under implementation. Of these, the Kundli-Manesh- n Construction n Electricity war-Palwal expressway project, costing more than $475 million, n Manufacturing n Services n Irrigation is the most signifi cant. Another major project is the construction Source: Monthly Review of States of India, CMIE March Report 2007 of the Panipat Elevated Highway at a cost of $77 million. Two major electricity generation projects under implementation are GKN Invel, Woodward Governor, Castrol, Escorts, Eicher Mo- the Jhajjar Power Project (capacity 1,500 MW, cost $1.6 billion) tors, Cutler Hammer, Hyderabad and Nuchem are and the Panipat Stage V Thermal Power Project (capacity 500 operating here. MW, cost $425 million).

Other important cities in Haryana are Karnal and Ambala. Kar- Haryana reported 620 outstanding projects as of quarter ended nal is the centre for agro-based and handloom industries. Ambala March 2007, of which 166 were in the implementation stage is known for its scientifi c and surgical instruments and hosiery and the remaining under announcement or proposal stage. industry. The economic hub around Kundli-Manesar-Palwal and Two major projects with an investment of over $238 million Panchkula is being developed as an IT corridor in the state. include the Yamuna Nagar Township project (under the aegis of Tulip Infrastructure) and the Chainsa-Gurgaon-Jhajjar-Hisar The top 10 districts constitute 76% of production

District Share in production Industries (per cent) Faridabad 30.0 Tractors, motorcycles, switch gears, refrigerators, footwear, tyres, consumer durables Gurgaon 27.0 IT/ITES, automobiles, automobile parts, hardware, sports goods, rubber products, readymade garments, telecommunication equipments, food items, air conditioners, electrical goods, light engineering goods, pharmaceuticals, footwear, Chemicals Ambala 5.1 Hosiery, scientific and surgical instruments, metal casting, kitchen mixer grinders, submersible motor pumps, textiles Sirsa 4.0 Seed processing, wrapping papers, milk chilling, rice shelling, chemicals, iron and steel fabrication, agriculture implements, leather goods, hard and straw board Panipat 3.9 Cotton yarn, staple yarn, terry towels, soft drinks, hatcheries, handloom goods, foundry products, urea, petrochemicals, power, handloom, power , / processing, agro based industries, , textile machinery, nuts and bolts Karnal 2.4 Textiles, agro-based industries, leather products, floriculture, electronic motors, wooden and steel furniture Yamuna Nagar 1.5 Metal industry, sugar, wood based industries, , steel, stone crushing Bhiwani 1.0 Textiles Hisar 0.9 Stainless steel, automobile repair, textiles, handlooms, pipes, food processing, cotton ginning and oil, engineering components, leather goods Jind 0.3 Agro based industries, sugar mills, live-stock based industries, woollen blankets, foundry Others* 23.9 Total 100

*Others include Kurukshetra, Sonipat, Fatehabad, Rohtak, Kaithal, Narnaul, Bahadurgarh, Rewari, Panchkula and Mewat

Source: Department of Industries, Government of Haryana HARYANA PAGE 9

Gas Pipeline project (under Gas Authority of India Ltd). A mega SEZ is being established by Reliance Industries in a joint venture with the Haryana State Industrial Development Corporation (HSIDC). This project will come up on 25,000 hectares of land in the Gurgaon and Jhajjar districts, and envisages an investment of $8.89 billion. Major units undergoing expansion/ diversifi cation in the state include Asahi India Ltd, Alcatel Network Systems Ltd, Perfetti Van Melle and Duracel (India) Ltd.

Haryana’s contribution to exports

Exports from the state having been growing at a CAGR of 20 per cent over the past few years and crossed $5.5 billion in 2005-2006. Exports mainly comprise software services, basmati rice, readymade garments, handloom products, automobiles and auto components, scientifi c instruments and sanitary-ware. Software exports from the state increased from $190 million in 2000-01 to $2.23 billion in 2005-06.

The state government has set up an Export Promotion Board under the chairmanship of the chief secretary to promote exports. In addition, there is an Export Promotion Cell at the Directorate of Industries that provides basic knowledge of pro- cedures for exports and compiles information on trade enqui- ries and disseminates it to various associations and prospective exporters. Haryana has a container freight station at Babarpur in Panipat and an Inland Container Depot at Badarpur. A Satellite Freight City is proposed to be set up by the Airports Authority of India in Haryana.

Labour Force

Haryana provides cost-effective and adequate labour force (both skilled and unskilled). As per the 2001 census, it had a 1.276 million-strong agricultural workforce. About two-third of the state’s population still depends on agriculture for its livelihood. Almost 60 per cent of the workforce in the organised sector is employed in public sector organisations and the remaining in the private sector. Over the years, the state has witnessed migration of workers from the public to the private sector.

The state department has fi xed minimum wages for industrial workers, which are amongst the highest in the country. The minimum wage of unskilled workers has been fi xed at $52.2 per month and about $2 a day. The labour department has set stan- dards and norms for ensuring safety in working premises. Labour and industrial relations in Haryana are cordial as compared to other states with lesser occurrence of strikes and labour disputes. Infrastructure in Haryana

Industrial infrastructure commercial and recreational facilities that have been developed at par with international standards. Maruti Udyog is undertak- The Haryana Industrial Policy 2005 lays strong emphasis on cre- ing a massive expansion programme at Manesar creating fresh ating a sound investment climate. The industrial infrastructure in investment of $1.78 billion to double the capacity of passenger Haryana is being developed through state agencies like HSIIDC cars and also for starting a diesel engine project. The success of and Haryana Urban Development Authority (HUDA), as well IMT Manesar has prompted the government to set up four more as private players. The state government has laid down certain IMTs at Kharkhoda, Rohtak, Faridabad and Yamunanagar. provisions for land allotment: • There is a 10 per cent reservation of plots and sheds for Industrial clusters allotment to non-resident Indians and for units with 33 per cent or more FDI in total investment. The government is in the process of upgrading fi ve industrial • The allotment of plots and sheds is made on an ongoing basis clusters in the state. These include the scientifi c instruments by a committee consisting of director of industries, manag- cluster at Ambala, the metal industry cluster at Jagadhri, ag- ing director, HSIIDC, and managing director, Haryana Finan- ricultural implements and rice milling clusters at Karnal, the cial Corporation. The allotment of plots to projects with an pharmaceutical cluster at Sonipat and the chemicals cluster at investment of more than $6.67 million is made on an ongoing Bahadurgarh. basis by a committee headed by the principal secretary. The state government plans to develop a few more indus- Industrial parks trial clusters at Panipat, Gurgaon and Faridabad for textiles, auto parts and light engineering equipment, respectively. Rural Specialised industrial estates are being developed to cater to the industrial clusters are being set up at Ismailabad in Kurukshetra requirements of specifi c industries. These industrial parks help in district (for manufacturing), Farukhnagar in Gurgaon district improving operational effi ciency, as various units belonging to a (for jute and cane furniture manufacturing), Odhi in Rewari dis- specifi ed sector are located at one place. trict (for leather footwear manufacturing), and Tallot in Mahen- dragarh district (for frame manufacturing). • Export Promotion Industrial Park (EPIP): The Haryana Government has set up EPIP on a 107-acre area along the Complex/ Inland Container Depots Haryana-Delhi border for export-oriented units in sectors like food processing, leather garments and accessories, elec- The state has three Inland Container Depots (ICDs) located at tronics, telecommunications, automotives, auto parts, sports Faridabad, Panipat and Rewari. Haryana Warehousing Corpora- goods, handloom and ready-made garments. tion (HWC) is setting up an ICD at Palwal and a specialised • Food Parks: These have been set up at Saha in Ambala, Rai in state-of-the-art warehousing complex at Rai in Sonipat district. Sonipat, Narwana and Dabwali, to provide facilities for the HSIIDC is developing an ICD in public-private partnership at the food processing and food packaging industry. Industrial Growth Centre in Bawal. The Container Corporation • Gems and Jewellery Park: This has been established at Udyog of India (Concor) is setting up a cold chain complex at Rai (Soni- Vihar in Gurgaon. pat) to provide logistic support to the Food Park located there. Logistics provider, Indo Arya Logistics, has announced Amongst the new sector-specifi c parks planned for the future the launch of a regional distribution centre at Hassangarh, which are the National Institute for Food Technology Entrepreneurship would be one of the largest of its kind in the country. The ware- and at Kundli in Sonipat district, a footwear park house has the potential to become a support provider for retail and a leather garments park at Karnal and Bahadurgarh, respec- and FMCG sectors in north India. tively, an apparel park each at the SEZs in Gurgaon and Barhi (Sonipat district) under the Apparel Parks for Exports scheme of Industrial Growth Centres the Government of India, and a biotechnology park at Manesar. HSIIDC has developed an Industrial Growth Centre at Bawal Industrial Model Townships (IMTs) spread over a 1,200-acre area. Companies like YKK, TDT Cop- per, Exide, Becton Dickinson, Nerolac, Svedla and Asahi Glass are IMT Manesar is being developed as a prominent cluster of auto- already present at the centre. Encouraged by the rapid growth mobiles and auto components units. It has industrial, residential, in the number of industries, an additional 1,000 acres of land has HARYANA PAGE 11

been acquired. An industrial growth centre at Saha, near Ambala, Sonipat, also known as the Knowledge City; is also being setup by HSIIDC. • The state government has built an EDUSAT network for satellite education and transferred it to the Utkarsh EDUSAT Special Economic Zones (SEZs) , which handles repair and maintenance of equipment, coordination for content development and research. It of- Haryana has eight notifi ed SEZs, 29 formally approved SEZs and fers fi ve channels for primary education, senior secondary 28 SEZs with in-principle approval – amongst the highest num- arts, senior secondary science, higher secondary education ber of SEZs in the country. Reliance Industries’ 10,000-hectare and technical education. Educational institutes have been multi-product SEZ at Jhajjar is so far the country’s biggest SEZ, given satellite interactive terminals facilitated by software- involving an investment of $8.89 billion. This is followed by real controlled multicast through protocol, which enable estate giant DLF’s proposed multi-product SEZ at Gurgaon, with students to ask questions live. Videos of theory and practical an investment of $5.78 billion. DLF has also been given the ap- classes are made available so that students can view them proval to set up a multi-product SEZ at Ambala with an invest- later for better understanding of the subject; ment of $430 million. • An Institute of is being set up at Rohtak in collabora- tion with the National Institute of Technology (NIFT); SEZs notifi ed under SEZ Act 2005 as on • The National Institute of Food Technology, Entrepreneurship 29th August 2007 and Management (NIFTEM) is being set up by the Ministry of Food Processing, Government of India; Name of the Location Type Area Developer (in Hectare) • The Directorate of Secondary Education in the state has en- Uppal Developers Gurgaon Multiservice 106.3 tered into an agreement with an e-learning enabler, Educomp DLF Limited Gurgaon IT/ITES 12.06 Solutions, to introduce education in senior second- DLF Cyber City Gurgaon IT/ITES 10.73 ary schools. The $4 million project will be implemented over Developers Ltd. three years and will aim to provide IT education in over 800 Orient Craft Gurgaon Textiles 114.83 Government High Schools. Infrastructure Ltd. Dr. Fresh Health Pvt. Gurgaon IT/ITES 23.43 Medical & Health Care Facilities Ltd. Selecto Systems Pvt. Faridabad IT/ITES 3.34 The State Health Department provides quality and affordable Ltd. health care facilities to its people through its network of health Luxor Cyber City Gurgaon IT/ITES 27.08 care centres and facilities. The state has about 90 and Pvt. Ltd. dispensaries, 85 community health centres, 400 primary health Parsvnath Limited Gurgaon IT/ITES 42.7 centres, 2,400 sub-centres and 15 tuberculosis centres. The per Source: http://sezindia.nic.in capita expenditure on health in the state increased from $4.11 in 2004-05 to $5.41 in 2006-07. Educational and Training Infrastructure Comparison of Health Indicators Realising the importance of a skilled and educated workforce, Haryana has created a well-developed network of educational Haryana All-India institutions. The primary education set-up is strong with a pri- Birth rate 25.1 24.8 mary school within 1.08-kilometre radius of each village. Every Death rate 6.6 8.1 year, more than 30,000 students pass out from technical and Infant mortality rate 42 63 non-technical institutions in the state. The annual plan budget Life expectancy at birth (years) allocation for 2006-07 on education was increased to $11.12 million from $6.22 million in the previous year. Male 65.5 64.1 Female 70.0 65.4 The state has recently taken up several initiatives to improve the education infrastructure. Some of these are: Source: Economic Survey of Haryana • It has set up a State (Bhagat Phool Singh Mahila Gurgaon is on course to have 18 new hospitals equipped with Vishwavidyala) at Sonipat exclusively for women’s education; about 5,000 beds by 2010, at a cost of almost $670 million. In- • It is setting up the Rajiv Gandhi Education City at Kundli in vestments are being made by leading healthcare fi rms like Fortis Healthcare, Apollo Hospitals, Artemis, Max Hospitals, Healers Growth Centre Bawal, right up to Ahmedabad and Mumbai. NH- , Rockland and Paras Hospitals, and by surgeon-turned- 10 passes through Haryana from Delhi to Dabwali. entrepreneur Naresh Trehan. Railways Infrastructure for savings and borrowings Haryana is well connected through the rail network of the In- Industrial growth in Haryana has been supported by a strong dian Railways. The main railway routes passing through the state and well-developed fi nancial network. Financial assistance is are Amritsar-Delhi, Rewari-Ahmedabad, Bhiwani-Rohtak-Delhi, provided through commercial , banks and Ambala-Ferozepur, Delhi-Ferozepur, Kalka-Jodhpur, Kalka-How- other lending institutions. Credit-deposit ratio is a signifi cant rah, Amritsar-Howrah and Delhi-Shimla. As on 31st December indicator of credit fl ow for accelerating economic development 2006, the state had a 1,595-kilometre long rail network. in any state. The credit-deposit ratio in Haryana increased to 65 per cent as of September 2006 as compared to 53 per cent The Delhi Metro is being extended to Gurgaon district and a rail during the corresponding period in 2005. The Haryana State link from Rohtak to Rewari is being undertaken. There is a pro- Cooperative Agricultural and Rural Development is the posal to provide a rail corridor linking the major satellite towns prime lender for agriculture-related activities. Haryana Finance of Faridabad, Gurgaon, Bahadurgarh and Kundli with New Delhi. Financial Institutions in Haryana Civil Aviation Co-operative 18,424 The state has a domestic airport at Chandigarh (Haryana’s Primary Agricultural Credit Societies 2,433 shared capital with the state of Punjab). The Indira Gandhi Inter- Post Office Saving Banks 2 650, national Airport is located in close proximity (a 20-minute drive Indian Commercial Banks 1,726 from Gurgaon), which is a major reason for the rapid emergence Co-operative Banks 373 of Haryana as an IT and ITES destination in India. There are civil aerodromes at Pinjore, Karnal, Hisar, Bhiwani and Narnaul. Source: Reserve Bank of India Power Corporation and Haryana State Co-operative Apex Bank Ltd are the other agencies providing fi nance facilities. Haryana became the fi rst state in the country to achieve 100 per cent rural electrifi cation way back in 1970. The installed Physical Infrastructure generation capacity in the state as on 31st March 2006 was 4,033 MW, most of it being thermal power. The major consumer Transport of electricity is the domestic sector accounting for 78 per cent of power consumption. The per capita consumption of electric- The state government is developing a well-planned and effi cient ity is 660 kWh, much higher than the all-India average of 390.3 network of transport facilities in Haryana. kWh. An estimate by Haryana Power Generation Corporation Ltd (HPGCL) reveals that there exists a gap in demand and sup- ply, with demand exceeding supply by 4,864 MW. To increase the availability of power, the state government is encouraging mas- Haryana has a well-developed network of passenger roads, sive investments from the private sector for capacity generation, with the remotest parts of the state linked with metalled roads. improvement in operational effi ciency and extension of distribu- Haryana Roadways, with its fl eet of nearly 3,400 buses, is one tion network. Some key upcoming ultra mega power projects of the biggest state undertakings in the country. proposed in the state are tabulated below: The state is well connected to neighbouring states through a network of national highways. The four-lane national highway 1 Upcoming Power Projects in Haryana passes through Haryana from Delhi to Ambala, linking Punjab, Himachal Pradesh and Jammu & Kashmir. NH-2 (Delhi-Mathura HPGCL has signed agreements for various independent power Road) passes through Faridabad and links vast areas in the projects (IPPs). Jindal Power and Weizen Pvt Ltd will set up gas- state to Uttar Pradesh, Madhya Pradesh, right up to Mumbai. based plants having 1,000 MW and 600 MW capacities, respec- NH-8 (Delhi-Jaipur) passes through Gurgaon, IMT Manesar and tively. The state also has a long-term power purchase agreement HARYANA PAGE 13

Capacity (in Likely year of Agency Type which has made the procurement and storage of food grains mega watt) operation in the state fl exible. Data is captured from mandis (markets) Thermal NTPC 1500 2010-12 power station during procurement by various agencies into a web-enabled for Delhi / software. Under this system, stock information is captured by Jhajjar godowns location-wise under various categories of stock. The Yamuna HPGCL Coal 600 2007-08 statistical and GIS reports generated from the system help in Nagar taking prudent decisions related to movement and despatch Hisar Thermal HPGCL Coal 1200 2009-10 Power Station of food grains. The system drastically reduces the manpower Source: Eleventh Annual Plan, 2007-12, Infraline engaged and time taken in preparing various reports and movement plans. with North Eastern Electric Power Corporation. Special efforts Key Nodal Agencies have been made to increase the plant load factor for existing power stations through better maintenance practices, renova- Investment Promotion Centre and District Industries Centre for tion and modernisation. single window clearance

Telecom & IT The state was the fi rst to set up its own Foreign Investment Promotion Board under the chairmanship of the chief minister According to estimates of the Telecom Regulatory Authority of in 2001. Now called the Investment Promotion Centre, it plays India (TRAI), Haryana had a strong cellular subscriber base of an aggressive promotional role and gives technical support to 3.88 million as on June 2007. All the major telecom players like appraise investment proposals from foreign as well as domestic Airtel, Hutch, BSNL, Reliance and Idea have a presence in the companies. It is empowered to take decisions regarding allot- state. Haryana has 1,026 telephone exchanges, 2,329 post offi ces ment of land, sanction of term loan, etc. and acts as a single in rural areas and 317 in urban areas. point contact agency. It has a complete database on availability of land, water, power and fi nance as well as rules and regulations The state government is setting up a Hi-Tech Habitat Centre pertaining to all the institutions engaged in industrial develop- with state-of-the art facilities for IT and BPO companies in the ment. It recommends a customised package of incentives and Electronics City at Gurgaon. The Nano City and IT Park projects concessions for projects involving investment of $6.63 million are under implementation in Panchkula. The state is making rapid and above. strides in its e-governance initiative to provide citizen-centric services. It has committed $22.5 million to set up a State Wide The state government has enacted the Haryana Industrial Pro- Area Network (SWAN). motion Act 2005 to make it mandatory on the part of various departments and authorities to provide approval and clearances e-Governance in Haryana in a fi xed-time frame. In July 2007, the state government notifi ed the Haryana Industrial Promotion Rules 2007 to implement the Haryana has made remarkable achievements in providing citizen- provisions of the Act. centric services through several e-governance projects that provide a single point of interaction between the citizen and The Act provides for a single window clearance mechanism to government departments. provide assistance to entrepreneurs and reduce procedural re- • e-Disha: This is an initiative for setting up district level centres quirements. It follows a three-tier structure as elaborated below: to provide timely and effective information to citizens regard- • High Powered Clearance Committee: This committee is ing various transactions entered into with the government headed by the principal secretary to the chief minister and departments at district and lower levels at a single window receives composite application forms for grant of clearances point. e-Disha centres have been set up in 18 districts. Each for setting up of industrial units with a proposed investment centre provides services within specifi ed time lines. The of $7.14 million and above. Its members include several services currently being provided include provision of driving principal secretaries including those from Excise and Taxation, licence, registration, issuance of certifi cates, passport Power, Town and Country Planning, Industries and Labour and application, arms licences and services related to house tax. Environment ministries. Its member secretary is the director, • e-Food.net: This is a web-based decision support system Industries and Commerce. days of the receipt of orders of the committee. The respective • State Level Clearance Committee: It deals with investment committees are the fi nal authority in granting clearances and the proposals between $1.19 and $7.14 million. This committee is decision is binding on all concerned authorities chaired by the Principal Secretary, Industries, with its mem- bers and member secretary from the High Powered Clear- Haryana State Industrial and Infrastructure Develop- ance Committee. ment Corporation Ltd (HSIIDC)

• District Level Clearance Committee: This committee handles HSIIDC was set up in 1967 for promoting medium- and large- investment proposals below $1.19 million. Its chairman is the scale industries in the state. It provides fi nancial assistance by deputy commissioner, with members including executive en- way of term loans, equipment re-fi nance, equipment leasing gineer, Uttar Haryana Bijli Vitran Nigam or Dakshin Haryana and working capital. It also provides services like infrastructure Bijli Vitran Nigam, deputy excise and taxation commissioner, development. district town planner, district level offi cer of Haryana State Control Board and assistant director, Industrial Haryana Agro Industries Corporation Ltd (HAIC) Safety, and general manager, District Industries Centre as the member secretary. HAIC is engaged in providing seeds, fertilisers, pesticides, trac- tors and other agricultural machinery at economical prices to The Investment Promotion Centres at New Delhi and Chandi- the farming community. It has set up an R&D centre for the agro garh and the District Industries Centre act as nodal agencies to sector. HAIC is also the designated agency for procuring wheat provide support to these committees. Composite application and paddy in the state and is responsible for the promotion of forms have been introduced to provide approvals and clearances food processing and agro-based industries. required at the time of establishment and operation of the unit. The details of these forms are as follows: Haryana State Small Industries & Export Corporation Ltd (HSSI & EC) Form 1 (for establishment) • No objection certifi cate from the Haryana State Pollution HSSI & EC performs multifarious activities for the promotion Control Board; of SSIs and rural industrial units. The agency is recognised as • Change of land use certifi cate from the Town and Country an Export House and promotes exports from SSI units. It also Planning Department; assists SSI units by making available and providing • Approval of factory/ plan under the Factories Act; market assistance. • Approval of building plan from Town and Country Planning Department; Haryana State Electronics Development Corporation • Application and agreement for release of electric connection Ltd (HARTRON) from Dakshin Haryana Bijli Vitran Nigam or Uttar Haryana Bijli Vitran Nigam HARTRON is the nodal agency of the Haryana Government for promoting the electronics and IT industries. It offers expertise in Form 2 (for operation) infrastructure development. • Consent from the Haryana State Pollution Control Board under Water (Prevention and Control of Pollution) Act, 1974 Haryana Urban Development Authority (HUDA) and Air (Prevention and Control of Pollution) Act, 1981; • Licence from Chief Inspector of Factories under the Factories HUDA is responsible for promoting and securing development Act, 1948. of urban areas and has the powers to acquire, develop and sell property for residential, industrial and commercial purposes as Every applicant seeking clearance is required to apply to the well as to make developed land available to the Haryana Housing nodal agency in the relevant parts of Form-1 or Form-2 of the Board to undertake building work. composite application form. The composite application forms are received from entrepreneurs at least 15 days prior to the scheduled meeting for consideration by the respective commit- tees. The authorities issue necessary clearances within three HARYANA PAGE 15

Haryana Finance Corporation (HFC) mentation of the IT action plan of various departments and approving their budgets and sanctioning posts for IT-related HFC meets the credit needs of small- and medium-scale indus- activities; trial units by advancing term loans. The loans are advanced for • Setting up of a separate Secretariat for Information Technol- acquiring fi xed assets such as land, building, plant and machinery. ogy to monitor the implementation of IT initiatives and take necessary steps to remove hurdles; Haryana Renewable Energy Development Agency • Setting up a Facilitation Committee of government offi cials (HAREDA) and representatives from the IT industry under the chairman- ship of principal secretary to the chief minister, to coordinate HAREDA is the nodal agency for coordinating all activities and facilitate private investments; relating to renewable energy development, including genera- • Establishment of an IT initiative fund with an initial corpus tion of power using non-conventional energy sources. It is also of $2.1 million for e-governance, for developing replicable responsible for laying down the procedure for inviting propos- and reusable models of e-governance and applicable enabling als from independent power producers, detailed project report ; preparation, evaluation of project proposals, project approvals • Introduction of smart card-based citizen ID cards with multi- and project progress monitoring. functions that enable citizens to interact with government departments for services including online payments, obtaining Policy Framework ration cards, passports, driving licences and vehicle registra- tion; it also acts as a voter ID; Industrial Policy 2005 • Preferential treatment for allotment of land to IT units in all industrial areas developed by state agencies, along with Haryana’s Industrial Policy 2005 aims to achieve the creation of continuous and uninterrupted power supply with exemption an effi cient and investor friendly environment. Its focus is on the from scheduled power cuts; following: • Total exemption from payment of electricity duty for captive • Developing economic hubs and encouraging private partner- power generation sets installed by the IT industry; ship in the development of infrastructure; • Escort services and single desk clearance for obtaining easy • Focussing on economic activities where the state enjoys com- clearances and approval by various government departments parative advantage (for example, food processing and IT); for IT companies, with online clearance and support network • Developing the services sector (tourism, transport, education, linking all related departments. The Secretariat for IT coordi- health care services and fi nancial services) to drive growth; nates approvals and facilitation. • Creating an investor-focused approach in administrative processes, bringing about effi ciency and transparency and The state’s Labour Policy has declared the IT industry as a public strengthening the grievance redressal mechanism; utility service, which prevents the occurrence of strikes as well • Providing subsidy to electronics units, agro and food process- as lockouts without due notice. The industry has also been ing units and prestigious projects as well as to units being set exempted from operations of provisions regarding opening and up in backward areas; closing hours. • Exempting all new industrial units - except those in the nega- tive list - from payment of electricity duty for a period of fi ve The Haryana SEZ Act 2005 years. The Haryana SEZ Act 2005 aims to promote industrial town- Information Technology Policy 2000 ships with world-class infrastructure and creating a conducive climate for export promotion. The developer, after identifying The IT Policy 2000 is an initiative to encourage replacement of the area for an SEZ, has to submit an application to director, the traditional delivery system of public services with IT-driven Industries & Commerce Department, along with a pre-feasibility systems of governance through private initiatives in providing report. The Project Evaluation Committee, constituted under critical infrastructure, systems framework and an enabling envi- the chairmanship of Haryana Industries and Commerce Depart- ronment. For this purpose, the following steps have been taken: ment, evaluates the proposal and after scrutiny forwards it to • Constitution of a state-level steering committee - IT Prism - the Project Approval Committee, for a fi nal decision. responsible for setting the priorities for sectors to be taken up for computerisation, reviewing the progress of imple- The private sector is allowed to purchase land directly from the landowner for single product SEZs, IT/ ITES, biotechnology and potential for raising horticulture production and exports to the warehousing SEZs where land area requirement is not high. The USA, and Japan. Dairy farming also has a huge potential state government assists developers in ensuring contiguity of in rural areas and is being promoted as a self-employment op- land for SEZs. Outside the NCR, the state government assists tion. in acquisition of land in cases where the minimum requirement is 250 acres. In case of joint ventures where HSIIDC or the Value addition from the sector is more than $2 billion per an- government has 26 per cent or more share in equity, the state num. Haryana has about 750 food processing and agro-based acquires the entire land for the project. Proposals for land acqui- units in the large and medium sectors. Food processed and agro- sition are received by HIPB. based products worth $340 million – including $44.5 million worth of pickles – are exported annually The developer is bound to rehabilitate the affected villagers by ensuring built-up houses, residential plots, street lights, drainage Some of the major players in the agriculture and food process- and sewage, drinking water, medical care facilities, schools and ing industry in Haryana are Yakult Danone, GlaxoSmithKline community centres. Besides, the developer has to offer at least Consumer Healthcare and Perfetti Van Melle India. 25 per cent of the employment to the Haryana domicile, give employment to at least one member of the family whose land Yakult Danone India Pvt Ltd is acquired for setting up the project, pay external development charges, provide right of way and develop infrastructure like Yakult Danone India Pvt Ltd, a joint venture between Japan’s roads and . Yakult Honsha and Group Danone of France, is setting up a manufacturing facility in Haryana to produce fermented milk. The The Act allows for exemption from payment of any tax, duty, company has been allotted eight acres of land in the HSIIDC fees, cess or any other levies for any goods exported or im- Food Park. It will have an installed capacity of a million bottles ported into the SEZ, inter-unit transaction of goods within per day, which will be achieved in four phases. the zone, goods sent for value addition outside the SEZ to the domestic tariff area and returned back, and services that provide GlaxoSmithKline Consumer Healthcare Ltd (GSKCH) value addition to the project within the SEZ. All transactions and transfers of immovable property within the SEZ are exempted GSKCH is a group company of GlaxoSmithKline UK, and one from stamp duty. of the largest players in the health food drinks industry in the country. Its fl agship product Horlicks is a widely recognised Key industries and players in Haryana brand. The company’s factory at village Khera, Sonipat, on a 140- acre plot, has been set up at a cost of $55 million with a capacity Haryana has 80,000 SSI units and 1,290 medium- and large-scale to produce 261,000 tonnes of Horlicks per annum. industrial units, with the key ones being agro-based and food processing, IT and ITES, textiles, automobiles and auto compo- Perfetti Van Melle India nents, pharmaceuticals and biotech, real estate and construction, retail and location-based entertainment. Perfetti Van Melle India, a 100 per cent subsidiary of global Perfetti Van Melle, started its operations in India Agro-based industries in 1992 by setting up a factory at Manesar. It launched its fi rst brand – Center Fresh – in the Indian market in 1994. Today, it Agro-based industries are one of the largest employment gen- leads the Indian sugar confectionery market with an over 25 per erators in rural Haryana and have a strong potential in terms cent share of the market. It also has under its ambit the develop- of value addition and exports. The total food grain production ment of South Asian markets and exports to other Asian coun- in Haryana increased from 13,295 tonnes in 2000-01 to 14,443 tries. In the last 12 years, the company’s portfolio has grown tonnes in 2006-07. Besides, the state produces 212,000 tonnes from a single brand to 15. of fruits and 2.09 million tonnes of vegetables. The state is also promoting organic farming aggressively, providing fi nancial as- Textile industry sistance of $12 per hectare to farmers for production and use of vermi-compost. It is also encouraging the use of green house Abundant availability of raw material gives Haryana a competi- production technology to promote disease-free nursery and tive advantage in the textile sector. Cotton production in 2006- production of off-season fruits and vegetables. There is a huge 07 was 1.81 million bales. The state’s contribution to the national HARYANA PAGE 17

production of cotton yarn is 25 per cent. There are 73 cording to the CMIE, the auto sector has shown an impressive mills and two composite mills in the state. The production of CAGR of 19 per cent over the last four years. With an invested textiles, including ready-made garments, is valued at $1 billion capital of $1.54 billion, the net value addition from the industry annually; almost a third of this produce is exported. With an is $930 million. invested capital of $660 million, the industry makes a net value addition of $170 million. A cluster of high-fashion readymade Some major players in the automobiles and auto components garments units has come up in the industrial area of Udyog Vihar, industry in the state are: Gurgaon. They export products to many countries and also sup- ply to several Indian brands. Maruti Udyog Ltd (MUL)

Key players to have invested in the textile industry in Haryana MUL was established in February 1981 as a government com- are DCM Textiles, Orient Craft and Benetton India. pany in collaboration with Suzuki Motor Corporation (SMC) of Japan. It currently has a share of more than 50 per cent in the DCM Textiles Indian passenger car market. Its Gurgaon facility has three state- of-the-art integrated plants spread over 297 acres, with a pro- DCM Textiles, a part of the DCM group, has a spinning mill at duction capacity of nearly 630,000 cars per year. A fourth plant Hisar with an installed capacity of 39,200 spindles. It is engaged at Manesar was set up in February 2007. With India becoming a in the manufacture of 100 per cent grey cotton yarn and me- promising global hub for small cars, the company plans to invest lange yarn. The products are exported to South Korea, Sri Lanka, $2 billion in the country by 2010. , Egypt and Taiwan. Hero Honda Orient Craft Ltd Hero Honda is the world’s largest motor cycle company. It has Orient Craft, located in Gurgaon with a 3,000-strong workforce, developed two world-class manufacturing facilities at Dharuhera is a government-recognised export house. The company, which and Gurgaon in Haryana with an annual production capacity of has established itself as a premium exporter of textiles, has plans three million bikes. The company has sold over 15 million motor to develop a $450 million, 600-acre SEZ in Gurgaon. cycles, and every second motor cycle sold in the country is a Hero Honda. It plans to set up a third two-wheeler manufactur- Benetton India ing facility in Haryana.

Benetton, which entered the Indian market in 1991-92, is a whol- Honda Motorcycle & Scooter India (HMSI) ly-owned subsidiary of the Italian group. Its leading brand, United Colours of Benetton, is a market leader, and is sold through 106 HMSI is a 100 per cent subsidiary of Honda Motor Company, stores in 45 cities across the country. Benetton India has a unit Japan. HMSI has a 52-acre factory at Manesar, with an installed in Gurgaon, where almost 50 per cent of the garments required production capacity of 600,000 scooters and 400,000 motor for the domestic market are manufactured. cycles per annum. The company has invested $124 million in the state. It has also established an R&D facility at Gurgaon, one of Automobiles & Auto Components industry three such facilities it has globally.

Several auto and auto component manufacturers have a base in Escorts Haryana. They include Maruti Suzuki, Hero Honda Motors Ltd, Honda Motorcycle & Scooter India, Sona Koyo Steering Systems, The Escorts group is among India’s leading engineering conglom- Yamaha Group, Escorts, Munjal Showa, Talbros Automotive, Rico erates operating in the high growth sectors of agri-machinery, Auto Industries and Omax Auto. construction and material handling equipment, railway equip- ment and auto components. Its corporate headquarters as well According to estimates by the Confederation of Indian Industry as its facilities for tractor assembly, transmission and engines, (CII), Haryana accounts for more than 50 per cent of passenger crankshaft and hydraulics are located in Faridabad. Escorts is also cars, 50 per cent of motor cycles, 25 per cent of tractors and a leading manufacturer of critical railway components, and Asia’s 25 per cent of bicycles manufactured in the country. Important largest manufacturer of air brake systems. automobile centres in Haryana are Gurgaon and Faridabad. Ac- Yamaha Motors Indian Oil Corporation (IOC)

Yamaha Motors is a 100 per cent subsidiary of Yamaha Motor IOC produces and markets petroleum products such as crude Company Ltd, Japan. Its manufacturing plant is located in Farida- oil, lubricants, grease and oil-based additives. It set up its sev- bad. enth refi nery at Panipat, with an installed capacity of six million metric tonnes per annum (MMTPA) at a cost of $830 million. Its Sona Koyo Steering Systems Ltd (SKSSL) capacity was increased to 12 MMTPA and is in the process of being increased further to 15 MMTPA. IOC has also announced SKSSL is a joint venture company of Koyo Seiko Company, Japan, the setting up of the $67 million Mundra-Panipat pipeline and with a manufacturing facility in Gurgaon. With a market share of Naphtha Cracker Complex at Panipat. The naphtha cracker and 50 per cent, the company is the largest manufacturer of steering downstream and chemicals units are expected to go on gears in India. It is a leading supplier of hydraulic power steering stream in 2008-09. systems, manual rack and pinion steering systems, collapsible, tilt and rigid steering columns for passenger vans and multi-utility Real Estate & Construction industry vehicles, rear axle assemblies and propeller shafts. The real estate and construction industry has been growing at Talbros Automotive Components a rapid pace in Haryana. Gurgaon has witnessed a spurt in con- struction and real estate activities over the past few years. It ac- Talbros Automotive Components is a manufacturer of automo- counts for more than 70 per cent of the new commercial space tive and industrial gaskets. It has a technical collaboration with coming up in the NCR. Growth is occurring in the residential, Federal Mogul, USA, a world leader in automotive and industrial commercial and hospitality space. Commercial properties in sealing products. It has manufacturing facilities at Faridabad, Gur- Gurgaon are mostly for the IT, ITES and other service industries. gaon, Bawal and Sohna. Most of them are high-rise towers with power back-up, centra- lised and maintenance, fi re safety systems and ample Munjal Showa parking space. Some of the major players in the real estate and construction segment are the DLF Group, Unitech Group, Ansal Munjal Showa Ltd, a joint venture with Showa Corporation, Group and Emaar MGF. Japan, manufactures shock absorbers and struts for leading auto companies including Maruti Suzuki, Honda, Hero Honda, Kawa- DLF Group saki Bajaj and Kinetic. Its plant is spread over a 24,075 sq m plot in Gurgaon. The DLF Group is one of the largest real estate players in India and is generally credited with the growth of Gurgaon. It has Omax Auto developed 22 urban colonies, as well as an entire integrated 3,000-acre township – DLF Cyber City. The company has devel- Omax Auto is amongst the top domestic auto ancillary players. oped 32 million sq ft of real estate space and plans to develop It manufactures sheet metal, tubular and machined components another 62 million sq ft across the country. It has pioneered the and sprockets for two-wheelers and four-wheelers at its plants retail revolution with the launch of the City Centre shopping in Dharuhera. Its customers include Hero Honda Motors, Maruti mall in Gurgaon. The Mall of India, which it is building in Gur- Udyog, TVS Motors and Escorts Yamaha. gaon, spreads over 3.6 million sq ft and will be the largest in the country. Petro-chemicals industry Unitech Group Petro-chemicals is another important industrial sector in the state, with an invested capital of $17.2 million and net value ad- Unitech Group is another large real estate player in Gurgaon; it dition of $56 million. Indian Oil Corporation’s Panipat refi nery has executed commercial projects providing world-class service is one of the most prestigious projects in the state and is India’s facilities such as Pavilion House, Unitech Escape, Nirvana Coun- most modern refi nery. try, Unitech World, Unitech Trade Centre, Unitech Business Park, Millennium Plaza, Signature Towers and Global Business Park. HARYANA PAGE 19

Vipul Group imity with the national capital. With an increasing number of multinationals looking at software and BPO services The Vipul Group is another prominent player in the residential to India, Gurgaon offers a number of opportunities for them. and commercial real estate space. It has developed prestigious projects - Global Business Park and Millennium Plaza, in Gurgaon The in the state has also recorded impres- in partnership with Unitech. sive growth. The $5.2 billion industry (2006 revenues), has grown at a CAGR of 19.2 per cent over the last four years. Products Ansal Group include components, , communication equipment, , telecom handsets and control instru- The Ansal Group, with its three fl agship companies, Ansal Prop- mentation. Growth is expected to be driven by erties & Industries Ltd, Ansal Housing & Construction Ltd and manufacturing and automotive electronics. Ansal Buildwell Ltd, has an annual turnover of $83.3 million and projects in hand exceeding $760 million. Over the years it has Leading companies that operate in Haryana in the IT/ ITES space expanded its activities from real estate development to high-val- include IBM Daksh, Convergys India Services, Genpact, Tata Con- ue construction. The group has a presence in Gurgaon through sultancy Services and WNS. several projects in both the residential and commercial spaces. IBM Daksh Emaar MGF IBM Daksh manages business processes for clients from across Emaar MGF Land Pvt Ltd is a joint venture between Emaar the world. With 14 service delivery centres in India, IBM Daksh, Properties PJSC Dubai, the world’s leading real estate company, which has its corporate offi ce in Gurgaon, employs a workforce and MGF Development Ltd, India’s leading real estate developer. of over 20,000, and has emerged as the second-largest business Emaar MGF is engaged in pan-India projects in residential, com- process outsourcing vendor in India (in terms of headcount). mercial, infrastructure and hospitality sectors as well as SEZs. A major project being executed by Emaar MGF in Gurgaon in the Convergys India Services residential space is Palm Springs, which will include 300 high-end apartments and 100 luxury villas. Convergys has three operating centres in Gurgaon, with the main centre at DLF Atria, being its largest in India. It employ- Retail & Location-based Entertainment ees 5,600 people in India and is ranked as the world’s largest outsourcer of contact centre services. Convergys offers a There has been a spurt in the construction of shopping malls diverse portfolio of solutions, including customer care services, and multiplexes in Gurgaon, which has been dubbed the Mall simple-to-complex technical support solutions, City of India. This growth is further fuelled by the high dispos- programmes and back-offi ce BPO. able incomes of consumers in the region, along with easy avail- ability of land as compared to the national capital. More than a Genpact dozen shopping malls have been commissioned in Gurgaon, and over two million sq ft of retailing space is being added annually. Genpact is amongst the largest business services and technology solutions company in India. It is the largest private user of inter- IT/ ITES and Electronics industries national bandwidth in the country. It operates in the business process outsourcing (BPO) and knowledge process outsourcing Gurgaon has emerged as a preferred destination for the IT (KPO) domains and has a functional presence in fi nance and industry in north India. Companies like Hughes Software, Tata accounting, , analytics, sales and marketing, fi nancial Consultancy Services, Alcatel, Genpact, IBM, HCL Technologies, services collection, supply chain and procurement, IT services, Convergys, Siemens, Ericson, Microsoft, Cannon, GE Capital and enterprise application services, programme management and Silicon Graphics have their units in the city. Software exports customer services. Genpact is headquartered in Gurgaon and from Haryana added up to $2.23 billion in 2005-06 – which was ranked as the top ITES-BPO company by the National As- accounted for about 10 per cent of all-India software exports sociation of Software and Services Companies (NASSCOM) in – recording a CAGR of 33 per cent over the last four years. 2006-07. The company has a head count of 29,400 employees Haryana has an edge over other Indian states due to its prox- spread over 25 operations centres across the globe. At the Gur- gaon centre, it has more than 7,000 employees. Proagro Seeds Company Pvt Ltd Tata Consultancy Services (TCS) Proagro Seeds, a Bayer CropScience group company, is one TCS is India’s leading IT services company with global revenues of the leading seed fi rms in India and is engaged in breeding, of $4.3 billion in 2006-07. With its headquarters in Mumbai, TCS development, production and marketing of high quality hybrid has a strong intellectual pool of 45,000 consultants working fi eld seeds. It has a biotech laboratory in Gurgaon where genetic from offi ces and development centres spread all over the coun- markers, DNA fi nger printers and other tested techniques are try. TCS commenced operations at Gurgaon in 1995 and has fi ve used to provide support to its plant breeding efforts. Bayer offi ces in the city. CropScience is one of the world’s leading innovative crop sci- ence companies in the areas of crop protection, non-agricultural WNS pest control, seeds and plant biotechnology.

WNS is one of the pioneers in offshore business process out- Eli Lilly sourcing and serves clients in domains like travel and transporta- tion, insurance, healthcare, shared services and knowledge ser- Eli Lilly and Co (India) Pvt. Ltd is a subsidiary of the US pharma- vices. The 140,000 sq ft facility in Gurgaon has a 3,500-associate ceutical major. The parent company, a Fortune 500 fi rm, has an capacity and operates on a three-shift basis. The delivery centre annual turnover of $15.69 billion. It focuses its internal research provides services including business research, investment man- efforts primarily on therapeutic areas like neuroscience, endo- agement, information management, corporate analytics, sourcing crine disorder, cancer, cardiovascular diseases, bone and infl am- management and market research. mation and gene regulation. Eli Lilly’s Indian operations are based in Gurgaon, where it conducts clinical trials of biotech drugs Evalueserve (EVS) from its global portfolio. This research facility is among the larg- est in the world. EVS is a leading provider of KPO services. It provides cus- tom market research, business research, analytics, investment Ranbaxy Laboratories research, intellectual property research and marketing and sales support services from its global research centres in Chile, Ranbaxy Laboratories manufactures and markets branded and and India. It covers multiple industries across every continent, in generic pharmaceuticals and Active Pharmaceutical Ingredients. more than 50 languages. In India, it has three operation centres, It is based out of Gurgaon and has over 11,000 employees all located in Gurgaon. worldwide. Its R&D centres in Gurgaon focus on novel drug delivery systems, new drug discovery and the development func- Wipro Infotech tions of medicinal chemistry, analytical development, pharmacol- ogy, molecular technologies, infectious diseases, metabolism and Wipro is one of the largest IT fi rms in the country. It is an end- pharmacokinetics. It exports its products to 125 countries, has to-end IT solutions provider delivering services ranging from ground operations in 46 countries and manufacturing facilities in total outsourcing to consulting, business solutions and profes- seven countries. It is ranked among the top-10 generic compa- sional services. It has an impressive clientele including a number nies worldwide. of the Fortune 1000 and Global 500 companies. Its call centre at Gurgaon has a 2,000-seat capacity.

Biotech industry

Yes Bank is mandated along with Scott Wilson Kirkpatrick India to develop the Biotech City along the KMP expressway. The state is encouraging the establishment of R&D facilities and research centres and laboratories in the biotech sector. Proa- gro Seeds, Eli Lilly and Ranbaxy Laboratories are three leading companies in the state. HARYANA PAGE 21

Doing Business in Haryana

Under the single window clearance mechanism for industries, the state government has fi xed time limits for key sanctions by respective departments. Concerned Agencies & Time estimates for starting business in Haryana

Service/Facility Concerned Agency Timelines

Site Clearances and No Objection Department of Site/environment clearance: 60 days Certificate Environment No Objection Certificate to establish: 7 days No Objection Certificate to operate: 21 days

Renewal of consent: 30 days Licence, registration and change of Department of Letter of intent/industrial licence: 15 days industrial land Industries Permanent registration as SSI: 7 days Grant benefit of sales tax concessions: 90 days Allotment of Plot: 30 days

Change of Industrial Land: 30-60 days

Incentives Department of Sanction at local level: 30 days Industries Sanction at head quarter/state level: 45 days Release of Power Connection Electricity Loads up to 20 KW: 36 days Loads up to 70 KW: 66 days Loads above 250 KW: 90 days Load above 1 MW: 105 days

Sanction of Loans HSIDC/HFC Sanction of loan: 30 to 45 days

Cost Estimates

The costs involved in conducting business in Haryana are sum- marised in the following table:

Cost Parameter Cost Estimates Industrial land purchase US$ 470 to US$ 1190 per sq metre cost* Office space rent** Gurgaon: US$ 1 to US$ 4 per sq ft per month Residential rent** US$ 287 to 478 for a 2,000 sq ft house, per month 5-star room US$ 80.4 per room night rent*** Commercial & Industrial 9.5 cents/kWh Electricity****

Water***** 6 cents per 1000 litres

*Source: Director of Industries **Source: Property dealers/ Real estate agents ***Source: Leading hotels in the state *** Source: Haryana Electricity Regulation Commission ***** Source: Water Supply and Sanitation Department Contact Information : http://haryana.gov.in/industry/hssiec.htm Investment Promotion Centre Haryana State Electronics Development Corporation Limited Directorate of Industries S.C.O-111-113, Sector 17-B, Chandigarh 30 Bays Building, Sector 17, Chandigarh. Phone: +91-172-2740009 Phone: +91-172-2701346 / 2701221 Fax: +91-172- 2705529 Email: [email protected] Email: [email protected] Website: www.hartron.org Investment Promotion Centre Directorate of Industries, Haryana Haryana Urban Development Authority Baba Kharag Singh Marg, New Delhi. HUDA Offi ce Complex, C - 3, Sector 6, Panchkula Phone: +91-11-26250881-83 Phones: +91-172-2567857 / 2564048 / 2560605 Email: [email protected] Email: [email protected] HSIIDC Website: http://huda.nic.in Plot No.C-13-14, Sector 6, Panchkula Phone: +91-172-2590481-83 Appendix Fax: +91-172-2590474 Email: [email protected], [email protected] Exchanges rates used Website: www.hsidc.nic.in

Year One USD is equivalent to Rs. Haryana Financial Corporation 2000 46.6 Bays 17-18-19, Sector 17-A, Chandigarh- 160017 2001 48.3 Phone: +91-172-2702755-57 2002 48.04 Fax: +91-172-2702666 2003 45.6 Email: harfi [email protected] 2004 43.7 Website: www.hfcindia.org Confederation of Indian Industry 2005 45.2 North Regional Offi ce 2006 45 Block No.3, Dakshin Marg, Sector 31-A, Chandigarh, 160030 2007 42 Phone: +91-172-2602365 / 2605868 / 2607228 Fax: +91-172- 2606259 / 2614974 Email: [email protected]

Haryana Renewable Energy Development Agency S.C.O No. 48, Sector-26, Chandigarh- 160017 Phone No: +91-172-2790918 / 2791917 Fax No: +91-172-2790928 Email: [email protected] Website: http://hareda.gov.in Haryana Agro Industries Corporation S.C.O 811-812, Sector 22-A, Chandigarh- 160022 Phone: +91-172-706489 Fax: +91-172-705181 Email: [email protected] Website: www.haic.co.in

Haryana State Small Industries & Export Corporation S.C.O 88-89, Sector I 7-C, Chandigarh - 160017 Phone: +91-172-702531-33 Fax: +91-172-704597 HARYANA PAGE 23

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May 2008

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