HARYANA April 2010 HARYANA April 2010
Investment climate of a state is determined by a mix of factors
• Skilled and cost-effective labour • Procedures for entry and exit of firms • Labour market flexibility • Industrial regulation, labour regulation, other • Labour relations government regulations • Availability of raw materials and natural • Certainty about rules and regulations resources • Security, law and order situation
Resources/Inputs Regulatory framework Investment climate of a state Incentives to industry Physical and social infrastructure • Condition of physical infrastructure such as • Tax incentives and exemptions power, water, roads, etc. • Investment subsidies and other incentives • Information infrastructure such as • Availability of finance at cost-effective terms telecom, IT, etc. • Incentives for foreign direct investment (FDI) • Social infrastructure such as educational and • Profitability of the industry medical facilities
2 HARYANA April 2010
Contents
Advantage Haryana
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Haryana
3 ADVANTAGE HARYANA Haryana April 2010
Haryana – State profile
• Covering an area of 44,212 sq km, Haryana surrounds the national capital city, New Delhi, from three sides.
• Chandigarh is Haryana’s capital city. Punjab also has its administrative capital in Chandigarh. Haryana has 21 administrative districts.
• The Yamuna river flows along Haryana’s eastern boundary. Other important seasonal rivers flowing through the state are the Ghaggar and Markanda.
• Haryana has, predominantly, extreme and dry climatic conditions, with temperature reaching up to a high of 45- 50ºC in the summer months (April-June) and falling to about 1ºC in winter (December-January).
• Gurgaon, Faridabad, Karnal, Ambala, Panipat and Kurukshetra are the key districts of the state.
• The most commonly spoken languages are Hindi and Punjabi. In most schools, the medium of education is English. Source: Maps of India 4 ADVANTAGE HARYANA Haryana April 2010
Advantage Haryana … (1/2)
Industrial state Haryana is an industrial state and in recent years, has emerged as a base for the knowledge-industry including IT and biotechnology. It is also a leading agricultural state of the country. Many large Indians and multi-national companies have set-up offices in the state because of its infrastructure and proximity to Delhi.
Policy and fiscal incentives The state offers a wide range of fiscal and policy incentives for businesses under the Industrial Policy, 2005. Additionally, the state has sector-specific policies, particularly, on IT and tourism.
Rich labour pool The state has a large base of skilled labour, making it an ideal destination for knowledge based and manufacturing sectors. Further, the state has a large pool of semi-skilled and unskilled labour for support services.
Source: Maps of India
5 ADVANTAGE HARYANA Haryana April 2010
Advantage Haryana … (2/2)
Facilitating infrastructure The state has well-developed social and industrial infrastructure and virtual connectivity. It is among the states with good physical infrastructure such as power, road and railways.
Strategic location Around 40 per cent of the National Capital Region (NCR) of Delhi falls in Haryana. The NCR Board, under the Ministry of Urban Development, Government of India, decides on common development of cities falling in the region, thereby, facilitating seamless trade and commerce.
Stable political environment The state has a stable political environment with a single party State Government. Successive State Governments have been committed to creating a progressive business environment.
Source: Maps of India
6 ADVANTAGE HARYANA Haryana April 2010
Haryana in figures … (1/2)
Parameter Haryana All-states Source Economy GSDP as a percentage of all states’ 3.6 100.0 CMIE, 2006-07, current prices GSDP Average GSDP growth rate (%) 15.1 7.5 CMIE, 1999-2000 to 2007-08 Per capita GSDP (US$) 1606.5 998.1 CMIE, 2007-08 Physical infrastructure Central Electricity Authority, Installed power capacity (MW) 3,099.4 98,996.4 as of March 2009 Cellular Operators Association of GSM cellular subscribers (No) 8,112,867 367,328,179 India, as of November 2009 Broadband subscribers (No) 88,558 4,981,976 As of October 2008 Ministry of Road Transport & National highway length (km) 1,512 70,548 Highways, 2007-08 Airports (No) 3* 133 Industry sources Social indicators Literacy rate (%) 67.9 64.8 Census of India, 2001 Central Bureau of Health Birth rate (per 1,000 population) 23.9 23.3 Intelligence, 2007
*Civil aerodromes 7 ADVANTAGE HARYANA Haryana April 2010
Haryana in figures … (2/2)
Parameter Haryana All-states Source Ease of doing business Department of Industrial Policy and Promotion, FDI inflows (US$ billion) 19.3* 102.1 April 2000 to October 2009
Outstanding investments (US$ billion) 76.5 1,709.7 CMIE, as of December 2008
Industrial infrastructure PPP projects (No) 6 460 www.pppindiadatabase.com Functional as of August, 2009, SEZs (No) 3 98 www.sezindia.com
PPP: public private partnership, SEZ: special economic zone, *FDI inflows for RBI’s New Delhi region, which includes Delhi, parts of Uttar Pradesh and Haryana
Parameter Haryana Government Policy support Sectors with specific policies Industry (overall), IT and ITeS, Tourism Availability of labour Adequate skilled labour available
8 ADVANTAGE HARYANA Haryana April 2010
Key industries with policy thrust and factor advantages
Industry attractiveness matrix
High
IT and ITeS
Food Petrochemicals Processing
Auto- Biotechnology components Medium Real estate Policy thrust and construction
Textile
Low Medium High Factor advantage *Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital
9 HARYANA April 2010
Contents
Advantage Haryana
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Haryana
10 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010
Socio-economic snapshot of Haryana
Parameters Haryana Capital Chandigarh Geographical area (sq km) 44,212 Administrative districts (no) 21 Population density (persons per sq km) 478 Total population (million)* 21.0 Male population (million) 11.3 Female population (million) 9.7 Decadal population growth rate (%)* 28.4 Sex ratio (females per 1,000 males)* 861 Literacy rate (%) 67.9 Male (%) 78.4 Female (%) 55.7 Average life expectancy (years) 67.7
*As per Census 2001 Source: Economic Survey of Haryana, 2008-09
11 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010
Haryana’s GSDP
• At current prices, the total Gross State Domestic Haryana’s GSDP (US$ billion) Product (GSDP) of Haryana was about US$ 39.2 2008-09 39.2 billion in 2008-09. 2007-08 38.1 2006-07 31.0 • The state’s GDP grew at a CAGR of 15.2 per 2005-06 23.7 cent between 1999-2000 and 2008-09. 2004-05 20.8 2003-04 19.0 CAGR: 2002-03 15.9 15.2% 2001-02 13.6 2000-01 12.0 1999-2000 11.0
0.0 10.0 20.0 30.0 40.0 50.0
Source: CMIE
12 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010
Haryana’s NSDP
• At current prices, the Net State Domestic Haryana’s NSDP (US$ billion) Product (NSDP) of Haryana was about US$ 2008-09 36.05 36.0 billion in 2008-09. 2007-08 34.94 2006-07 28.33 • Haryana’s NSDP grew at a CAGR of 15.1 2005-06 21.60 per cent between 1999-2000 and 2008-09. 2004-05 18.99 2003-04 17.38 CAGR: 2002-03 14.56 15.1% 2001-02 12.51 2000-01 11.08 1999-2000 10.16
0.00 10.00 20.00 30.00 40.00
Source: CMIE
13 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010
The tertiary sector has an increasing share in Haryana’s economy
• In 2008-09, the tertiary sector contributed 43 per cent to the GSDP. It was followed by the primary sector with a contribution of 33 per cent and the secondary sector at 22 per cent.
• At 18 per cent, the tertiary sector had the highest growth of all three sectors in the period 1999-2000 to 2008-09. It was followed by the secondary sector at 14.5 per cent and the primary sector at 10 per cent.
23%
35% Primary 43% Primary Secondary Secondary Tertiary 55% Tertiary
22%
22%
1999-2000 2008-09 Source: CMIE
14 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010
Per capita GSDP
• The per capita GSDP of Haryana increased almost 2.9 times from US$ 541.1 in 1999-2000 to US$ 1606.5 in 2008-09.
• The per capita NSDP increased from US$ 498.5 in 1999-2000 to US$ 1475.9 in 2008-09, registering an average growth of 12.8 per cent during this period.
Per capita GSDP 1800.0 1606.5 1600.0 1586.9 1400.0 1313.6
1200.0 1025.0 1000.0 914.0 727.9 851.6 800.0 (US$) 575.9 541.1 635.2 600.0 400.0 200.0 0.0 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Source: CMIE
15 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010
Key industries in Haryana
• The natural resources, policy incentives and Key industries in Haryana infrastructure in the state support investments in sectors such as automobiles and auto- • Automotive components, IT/I Te S , textiles, agro-based • Agro-based industry industries, business tourism and commerce. • IT/ITeS
• Textiles • Forming industrial clusters and developing infrastructure has been a key strategy of the state • Oil refining to attract investments in various industries. • Bicycles
• Sanitary-ware • Gurgaon, Faridabad, Sonepat, Panchkula, Ambala, Ya muna Nagar are the key industrial districts of • Scientific instruments Haryana. • Tourism
• Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC) is the state's premier industrial promotion agency, responsible for providing reliable and efficient facilities for entrepreneurs investing in the state.
16 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010
Haryana – among the three largest food-grain producing states in India
• Wheat, sugarcane, rice, cotton, rapeseed and Annual production Crop mustard are the key agricultural products of the (‘000 tonnes) state. Wheat 10,085.0 Sugar cane 8,860.0 • In 2007-08, the total production of major crops of the state was over 24.43 million tonnes. Rice 3,019.0 Cotton 1,440.0
• Wheat accounted for 41 per cent of the total Rapeseed and mustard 658.0 production of the major crops. It was followed by Guar seed 360.0 sugarcane (36 per cent) and rice (12 per cent). Arhar 15.0
• In 2006-07, Haryana was among the three largest producers in the country for wheat, rape-seed and Source: CMIE mustard.
17 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010
Investments and FDI inflows
• According to the Reserve Bank of India, FDI Break-up of investments by sector inflows from April 2000 to October 2009 amounted to US$ 19,301.5 million*.
10% • As of December, 2008, outstanding investment in the state was US$ 76.5 billion. The Manufacturing construction sector accounted for the largest 17% share at 54 per cent, followed by Electricity Services services, electricity and manufacturing at 19 per 54% cent, 17 per cent and 10 per cent, respectively. Construction
19% • Key projects under execution include an integrated refinery-cum-petrochemical complex of Indian Oil Corporation, a coal based super- critical thermal power project of Aravali Power, two coal-based power projects of Haryana government, a basic telecom-services- As of December 31, 2008 project of Tata Teleservices, and an engineering Source: CMIE special economic zone (SEZ) project of Raheja SEZs Limited.
Source: Department of Investment Promotion and Policy, Government of India *FDI inflows for RBI’s New Delhi-region, which includes Delhi, part of Uttar Pradesh and Haryana
18 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010
Haryana’s exports trends
• Haryana’s exports have grown significantly Annual exports growth trends (%) since 2002-03. Steel product exports have given a major push to the state’s exports. 2007-08 3.5 2006-07 100.1 • Other key products exported by the state in 2005-06 25.9 2007-08 were IT 2004-05 26.6 services, textiles, gum, electrical goods, shoes 2003-04 32.7 and dairy products. 2002-03 140.9 -43.6 2001-02 • The setting-up of SEZs has also helped 2000-01 -3.4 increase exports in the state. -100.0 -50.0 0.0 50.0 100.0 150.0 200.0
Source: Capital Markets
19 HARYANA April 2010
Contents
Advantage Haryana
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Haryana
20 INFRASTRUCTURE STATUS Haryana April 2010
Road network
• Haryana has 24,218 km of roads with nearly Road map of Haryana 1,512 km of national highways*.
• It is among the few states with 100 per cent connectivity of rural areas with metalled roads.
• Haryana Roadways, with its fleet of nearly 3,411 buses, is one of the biggest state road transport undertakings in the country. It was also the first state in the country to introduce luxury video coaches.
• National Highways, NH-1, NH-2, NH-8, NH-10 and NH-22, pass through the state.
*Includes 44 km length covered by eastern peripheral expressway, which is being constructed near Uttar Pradesh and Haryana. Source: Economic Survey of Haryana, 2008-09
Source: Maps of India
21 INFRASTRUCTURE STATUS Haryana April 2010
Railway network
• Haryana has a railway-route length of roughly 1,595 km.
• Kalka, Kurukshetra, Rohtak, Jind, Hissar, Ambala, Panipat and Jakhal are the important railway stations. There is a railway workshop at Jagadhari.
• There is a proposal to provide a rail-corridor connecting towns around Delhi viz., the satellite towns of Faridabad, Gurgaon, Bahadurgarh and Kundli.
• There is also a proposal to provide rapid mass transport system between Delhi and the satellite towns.
Source: NCR planning board report
Source: www.haryana.gov.in
22 INFRASTRUCTURE STATUS Haryana April 2010
Airports and urban infrastructure
Airports
• There is a domestic airport at Chandigarh. There are civil aerodromes at Pinjore, Karnal, Hissar, Bhiwani and Narnaul
• The Indira Gandhi International Airport in New Delhi is located close to Gurgaon and Faridabad.
Urban infrastructure
• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), projects costing US$153 million have been sanctioned for Faridabad. International airport Domestic airport • The projects have been sanctioned between 2006- 09. Some of the key areas of development are Civil aerodrome water supply, storm-water drainage, and solid- waste management.
Source: JNNURM, Ministry of Urban Development
23 INFRASTRUCTURE STATUS Haryana April 2010
Telecom infrastructure
• Haryana had about 8.1 million cellular Telecom infrastructure subscribers, as of November 2009. Cellular subscribers*: About 8.1 million Internet/broadband subscribers**: 88,558 • There were 88,558 broadband subscribers, as of October 2008. Rural post offices: 2,329 Urban post offices: 317 • The tele-density of Haryana is 45.1 per cent. Telephone exchanges: 1,258
• As of March 2009, the state had 1,258 telephone *as of November 2009, **as of October 2008 exchanges. Major telecom operators in Haryana • There are 2,329 post offices in the rural areas and 317 in urban areas. • BSNL
• Bharti Airtel
Sources: Cellular Operators Association of India, Economic • IDEA Cellular survey, 2008-09 • Vodafone Essar
• Reliance Communications
• Virgin Mobile
• Mobile Tele Systems India (MTS India)
Source: Cellular Operators Association of India 24 INFRASTRUCTURE STATUS Haryana April 2010
Power … (1/3)
• As of March 2009, Haryana had a total installed power generation capacity of 3,099.4 MW, which comprised 3093.4 MW (99.8 per cent) under state utilities and 6.0 MW under the private sector.
• The capacity owned by state utilities comprised about 69.2 per cent of coal-based power plants and 28.6 per cent of hydro-power plants.
• All of the private sector controlled capacity was based on renewable energy sources.
• The major consumer of electricity is the domestic sector accounting for about 77 per cent of power consumption; agriculture and industry are the two other prominent electricity consuming sectors.
Installed state and private capacity (MW) Mode-wise classification of installed power capacity
2008-09 3,099.4 2% 2007-08 3,159.4 2006-07 2,559.4 29% 2005-06 2,560.4 2004-05 2,545.7 2003-04 1,990.3 69% 2002-03 1,990.3 2001-02 1,990.3 Coal Gas Diesel - 1,000.0 2,000.0 3,000.0 4,000.0
Source: Central Electricity Authority 25 INFRASTRUCTURE STATUS Haryana April 2010
Power … (2/3)
• Haryana has historically been a state with 100 Operational projects per cent rural electrification.
• In order to improve the generation and the availability of electricity to the people of the state, an outlay of US$ 302 million was proposed for this sector, in the Annual Plan, 2009-10.
• Of this, about US$ 1.69 million has been provided for renewable sources of energy.
Future projects
• 1,050 MW gas-based project at Faridabad. Source: Haryana Power Generation Corporation Limited • 660 MW capacity thermal unit at Yamuna Nagar.
• 2,800 MW (4x700 MW) nuclear power plant near Fatehabad.
26 INFRASTRUCTURE STATUS Haryana April 2010
Power … (3/3)
Projects under implementation Segment Company name
• 2x600 MW Rajiv Gandhi thermal-power project (RGTPP) at Power Haryana Power Generation Corporation Khedar, Hisar. generation Limited (GENCO) • 3X500 MW Indira Gandhi super-thermal-power project Haryana Vidyut Prasaran Nigam Limited (IGSTPP), at Jhajjar. Power (HVPNL) • 1,320 MW Mahatma Gandhi thermal-power project in transmission Dakshin Haryana Bijli Vitran Nigam Jhajjar. and (DHBVN) –Subsidiary of HVPNL • Procurement of up to 2,000 MW on long-term basis distribution Uttar Haryana Bijli Vitran Nigam through tariff based competitive bidding. (UHBVNL)
27 INFRASTRUCTURE STATUS Haryana April 2010
Key public-private partnership projects
Project cost Name of project Sector PPP type Stage (US $ million) Panipat-Jalandhar Roads BOT-Toll 497.4 Construction Delhi-Haryana border to Rohtak Roads BOT-Toll 105.7 Construction Badarpur elevated highways Roads BOT-Toll 73.9 Construction Ambala-Zirakpur Roads BOT-Toll 64.8 Construction Zirakpur-Parwanoo Roads BOT-Toll 64.1 Construction Panipat elevated highway Roads BOT-Toll 58.7 Construction
Source: pppindiadatabases.com BOT: Build-operate-transfer
28 INFRASTRUCTURE STATUS Haryana April 2010
Education sector
• The state has a strong primary-education No of educational institutions infrastructure with a primary school located within a 1.1 km radius of each village and a middle-school State universities 5 within 1.2 km radius. Engineering colleges 61 Computer applications colleges 34 • In 2008-09, higher- and senior-secondary schools were located within 2.3 km radius. Business administration colleges 56 Pharmacy colleges 27 • The state’s annual budget allocation for the year 2009-10 on education was significantly increased to Polytechnics 76 US$ 253.9 million from US$ 11.1 million in 2006- Under-graduate colleges 355 07. Post-graduate colleges 75 • An Indian Institute of Management (IIM) is being Government-aided colleges 94 established at village Gharnavti in the Rohtak district. Technical institutions 428
• The Central Government is setting-up the Rajiv Sources: Economic Survey of Haryana, 2008-09, Gandhi Education City at Kundli (Sonepat). All India Council for Technical Education (AICTE) Institutions of excellence for higher learning/research are being set-up in the Education City.
29 INFRASTRUCTURE STATUS Haryana April 2010
Health infrastructure
• Haryana has 46 hospitals, 91 community health centres, 427 primary health centres, 2,465 sub- Health indicators centres, 20 district tuberculosis centres and 56 Birth rate (2007)* 23.9 dispensaries. Death rate (2006)* 6.5 • The annual budget allocation for the year 2009-10 Infant mortality rate** 57 on health services is US$ 44.6 million. Life expectancy at birth (years; 2006-11) Male 65.5
Medical institutes in Haryana Female 70 Post Graduate Institute of Medical Education and Research Sources: Economic Survey of Haryana, 2008-09, Central Bureau at Rohtak. of Health Intelligence, 2007, Ministry of Health and Family Medical College at Agroha. welfare, Government of India *Per thousand persons A new medical college has been proposed exclusively for **Per thousand live births girls at Khanpur Kalan (Sonepat) and another one is being planned at Mewat.
Source: Economic Survey of Haryana, 2008-09
30 INFRASTRUCTURE STATUS Haryana April 2010
Industrial infrastructure
• The state has taken a number of initiatives for developing industrial infrastructure to achieve Industrial model townships (IMT) consistent economic growth. to be developed IMT Rohtak • An industrial model township is coming up at IMT Faridabad Manesar near Gurgaon. It is being developed as an automotive and engineering-hub. IMT Kharkhoda IMT Jagadhari • Primarily an agrarian state, now, Haryana is throbbing with industrial activity. HSIIDC is the state's premier industrial promotion agency. It is Mega-projects planned by HSIIDC responsible for providing reliable and efficient facilities for entrepreneurs investing in the state. Reliance Haryana SEZ through equity participation Nano City, Raipur Rani
KMP Expressway on build-operate- transfer (BOT) basis
Source: HSIIDC website
31 INFRASTRUCTURE STATUS Haryana April 2010
SEZs and industrial clusters … (1/4)
• As of December 2008, the state received 98 Promoters of SEZs: planned or under S.No proposals for setting-up of special economic construction zones (SEZs), with a projected investment of over Reliance Industries Limited at Gurgaon and US$ 43.4 billion and employment potential for 1 more than two million persons. Jhajjar 2 DLF Universal Limited at Gurgaon • Of these, 63 proposals have been granted in- 3 Unitech Commercial Limited at Kundli principle/formal approval by the Government of India. 4 D. S. Construction at Palwal (Faridabad) 5 Raheja Haryana SEZ Developers, Dharuhera • In 2008-09 (up to December 2008), seven SEZ proposals were received, with an investment of 6 Nanocity at Panchkula US$ 830 million and employment potential for 7 European Technology Park 100,000. 8 Petrochemical Hub at Panipat
• As of August 2009, three SEZs were in operation. 9 DLF Universal Limited at Ambala They are located in Gurgaon have IT/I Te S industries, called DLF Cyber City and Gurgaon Infospace.
Sources: Haryanaindustries.nic.in, sezindia.com, HSIIDC website
32 INFRASTRUCTURE STATUS Haryana April 2010
SEZs and industrial clusters … (2/4)
Index Operational SEZ Notified SEZ
IT/ITeS Mittal Infratech IT/ITeS Anant Raj Industries Limited Ansal Kamdhenu Engineering SEZ
IT/ITeS • DLF cyber city • DLF Limited • Gurgaon Infospace Limited Multi-Services Reliance-Haryana SEZ Limited IT/ITeS • Selecto Systems Private Limited • Perpetual Infracon Private Ltd. • Espire Infrastructure As of August 2009 Corporation Source: sezindia.nic.in
33 INFRASTRUCTURE STATUS Haryana April 2010
SEZs and industrial clusters … (3/4)
SEZ (notified) in Gurgaon
IT/ITeS • Uppal Developer • Dr Fresh Health Private Limited • Luxor Cyber City Private Limited • Parsvnath SEZ Limited • Suncity Haryana SEZ • Metro Valley Business Park Private Limited • GHI Finlease • Canton Buildwell Private Limited • Unitech Realty Projects Limited • Ascendant Estates Private Limited • Ansal SEZ Projects Limited • Progressive Buildstate Private Limited • Sunwise Properties Private Limited • Investments and Properties Limited • Private Limited • Airmid Developers Limited • Mikado Realtors Private
Textiles: Orient Craft
Biotechnology: Mayar Infrastructure Development Source: sezindia.nic.in Limited Engineering: Raheja Haryana SEZ Developers 34 INFRASTRUCTURE STATUS Haryana April 2010
SEZs and industrial clusters … (4/4)
Industrial clusters in Haryana Index Textile and handloom Automotive Engineering IT and ITeS Petrochemicals Agro-based industry
35 INFRASTRUCTURE STATUS Haryana April 2010
Infrastructure investments
• Infrastructure investments in Haryana were over Investments Infrastructure type US$ 6.2 billion, as of December 2008. (US$ million)
Power* 5,386.7 • Over 85 per cent of the investments in infrastructure were in the area of power Roads 678.0 generation and distribution. Railway 211.8 • About 10 per cent of the investments were in 6,276.5 the roads sector, while another 3 per cent were Total in the railways sector.
*Generation and distribution Source: CMIE
36 INFRASTRUCTURE STATUS Haryana April 2010
Existing industrial estates … (1/2)
Name of the estate/location Brief description
• Located at a distance of 50 km from Delhi, on NH-8 and about 32 km from the Indira IMT Manesar Gandhi International Airport (IGI). (Phase-1 is developed, Phases II, III and • Focuses on hi-tech and hi-precision non-polluting units such as automotive, IV are under development) readymade garments, ITeS and packaging.
Growth Centre, Bawal • Located on NH-8, about 90 km from New Delhi. (Phase-1 is complete, Phase-II is being • Key companies in the centre include YKK, TDT Copper, Exide, Becton Dickinson, developed) Nerolac, Svelda and Ashai Glass.
• Located on NH-8, about 6 km from IGI. • Focuses on industries from the IT/ITeS, electronics, electrical goods, pharmaceuticals, Udyog Vihar, Gurgaon light engineering, auto parts and component, and ready-made garments sectors. • Maruti Udyog, a leading car manufacturer of India, has its base in Udyog Vihar. Kundli • Located on NH-1on the Delhi-Haryana border, in Sonepat district. (Phases I, II and export promotion • Has industrial units from the general engineering, cycle parts, dairy products and industrial park (EPIP) are complete, agro-based sectors. further expansion has been planned).
37 INFRASTRUCTURE STATUS Haryana April 2010
Existing industrial estates … (2/2)
Estate/location Brief description
Faridabad • Located about 20 km from New Delhi, on the Delhi-Mathura highway. • Has industrial units from the light engineering sector.
Murthal • Located about 50 km from New Delhi, on NH-1. • Has industrial units from the general engineering, maltery, chemicals and cycle parts sectors.
Ambala • Located about 200 km from New Delhi, on NH-1. • Has industrial units from the scientific instruments, electronic and light engineering sectors. • It also has United Nation Development Program (UNDP) assisted instrument design and development centre.
Tohana • Located about 50 km from New Delhi. • Ha sindustrial units from the agriculture implements, foundry and light engineering sectors.
Jind • Located about 120 km from New Delhi. • Has process house and light engineering units.
Samalkha • Located about 70 km from New Delhi. • Has light engineering and foundry units.
Rai (expansion is being • Located about 35 km from New Delhi. planned) • A food park has been developed here.
Barwala (expansion is • Located at about 210 km from New Delhi, very close to Panchkula. The state has declared it as being planned) backward-area marked for development. Other industrial estates under implementation are include ancillary estates at Panchkula, Kalka, Murthal, integrated infrastructure development centre at Sirsa, built-up sheds near Sohna, and estates at Mankaputa in Yamuna Nagar.
Source: HSIIDC website 38 INFRASTRUCTURE STATUS Haryana April 2010
Upcoming industrial estates
Estate/location Brief description
• Land measuring about 450 acres has been acquired and the development work is in Kundli (expansion project) progress.
• Located about 40 km from Delhi. Bahadurgarh • HSIIDC has acquired about 675 acres of land for setting up an industrial estate in Jhajjar.
• Located about 180 km from Delhi. • Land measuring 415 acres has been acquired and developed, of which 70 acres has Saha growth center been developed for the food processing industry. • Land measuring 277 acres is under acquisition.
Hosiery complex in Barhi • An industrial complex, spread over 500 acres, has been planned at Barhi near (expansion is being planned) Ganaur, in the Sonepat district. In addition, three more townships are being planned at Sampla, Badli-Jahangirpur and Ganaur-Samalkha.
Source: HSIIDC website
39 INFRASTRUCTURE STATUS Haryana April 2010
Cultural infrastructure
• Various dance forms of the state include phag, dhamal,ratvai,khoria,ghoomar and ganguar.
• Important festivals of the state are lohri, basant panchami, holi, gangore, baisakhi, nirjala akadshi, gugga naumi and navrathri.
• Fairs held in Haryana include Gopal-Mochan, Masani, Basdoda,Surajkund and the Kartik Cultural Festival.
• Museums in the state include Urusvati museum of folklore (Gurgaon), Sanskriti museum (Gurgaon), Museum of folk and tribal art (Gurgaon), Sri Krishna museum (Kurukshetra), International dolls museum (Delhi) and City museum (Chandigarh).
• Prominent stadiums in the state include Nahar Singh stadium (Faridabad),Tau Devi Lal stadium (Panchkula), Ferozshah Kotla stadium (Delhi), Jawaharlal Nehru stadium (Delhi), Ambedhkar stadium (Delhi), National stadium (Delhi) and Shivaji stadium (Delhi).
40 HARYANA April 2010
Contents
Advantage Haryana
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Haryana
41 STATE POLICIES AND INCENTIVES Haryana April 2010
Sector-specific policies … (1/9)
Industrial Policy, 2005 Aim: To provide an efficient and investor friendly environment with speedy clearances of new projects, and encourage private sector participation in developing infrastructure. Key features and initiatives:
• Developing economic-hubs and encouraging PPPs in the development of infrastructure.
• Focusing on commercial activities where the state enjoys comparative advantage (such as food processing and IT).
• Developing the services sector (i.e., tourism, transport, education, and healthcare and financial services).
• Creating an investor-focused approach in administrative processes and strengthening the grievance-redress mechanism.
• Providing subsidy to electronics units, agro and food processing units, and projects being set-up in the backward areas.
• Exemption from payment of electricity duty for a period of five years to all new industrial units except those on the negative list.
42 STATE POLICIES AND INCENTIVES Haryana April 2010
Sector-specific policies … (2/9)
Industrial Policy, 2005 (continued) Key incentives:
1.Incentives for mega projects in backward areas:
• Mega projects, with investment of US$ 21.7 million and above or any project therein, employing more than 500 persons irrespective of investment would be extended assistance of 50 per cent of the tax paid on the sale of goods produced by such industrial units, under the Haryana Value Added Tax Act, 2003, for a period of seven years from the date of start of commercial production, as interest-free loan repayable after a period of five years from the date of grant of loan.
• Exemption from Local Area Development Tax Act (LADT) for a period of five years.
2.Incentives for small scale industries (SSI) in backward areas:
• New SSI units in the backward areas would be extended the facility of financial assistance in the form of interest-free loan of 50 per cent of the tax paid on the sale of goods produced in such industrial units, under the Haryana Value Added Tax Act, 2003, for a period of five years from the date of start of commercial production, to be repayable after a period of five years.
3.Incentives for exporting units:
• In order to boost exports and enhance competitiveness of exporting units, subsidy shall be given up to 1 per cent of the free-on-board (FOB) value of exports, subject to maximum of US$ 200,000 per annum.
43 STATE POLICIES AND INCENTIVES Haryana April 2010
Sector-specific policies … (3/9)
Industrial Policy, 2005 (continued) 4. Incentives for food processing industries:
• Food processing industries, except those in wheat and rice, will be considered as seasonal industry and exempted from payment of minimum demand charges for electricity.
• No market fee shall be levied on agriculture and horticulture produce used as raw material by food processing industries within the state, except rice, wheat, mustard oil and cotton.
• Interest-free loan of 75 per cent of the tax paid on the sale of goods produced in such industrial units shall be given under the Haryana Value Added Tax Act, 2003, for a period of five years from the date of start of commercial production. This would be repayable after a period of five years.
• Charges for change of land use for food processing units shall be levied at 50 per cent of normal rates in state-declared backward areas.
• Wines, liquors, brandy, etc., made from 100 per cent fruits produced in the backward areas will be exempt from the excise duty.
• Special priority shall be given for release of electric connection to mega projects, 100 per cent export-oriented units (EOUs), IT industries and FDI projects.
44 STATE POLICIES AND INCENTIVES Haryana April 2010
Sector-specific policies … (4/9)
Information Technology Policy (IT Policy), 2000 Aim: To encourage replacement of traditional public-service delivery systems by IT-driven governance, with the private sector providing the infrastructure, framework and enabling environment.
Key initiatives: • Constitution of a state-level steering committee responsible for developing priority sectors to be taken-up for computerisation, progress review of various government departments and approval of related budget.
• Setting-up of a separate secretariat for IT to monitor implementation of IT initiatives.
• Setting-up of a facilitation committee of State Government officials and people from the IT industry to coordinate and facilitate private investments in the industry.
• Establishing an IT-initiative fund, with an initial corpus of US$ 2.1 million for e-governance, to develop replicable and reusable models of e-governance and application of enabling technologies.
• Preferential treatment for allotment of land and power to IT units in all industrial areas, exemption from payment of duty on electricity for captive-power sets installed by the IT industry.
• Escort services and single-desk clearance for obtaining easy clearances and approvals, with on-line clearance and support network linking all the related departments.
45 STATE POLICIES AND INCENTIVES Haryana April 2010
Sector-specific policies … (5/9)
IT Policy, 2000 (continued) Key incentives:Policy, 2000
• Preferential allotment of land for the IT industry: The State Government shall give preferential treatment for allotment of land to the IT industries on an ongoing basis in all industrial areas developed by state agencies.
• Continuous uninterrupted power supply for IT industry: The state government shall endeavour to provide continuous and uninterrupted power supply for IT industries and shall exempt them from scheduled power cuts. Encouragement to captive power generation in IT parks/IT locations shall be given.
• Facilities on generator sets: Captive power-generation sets installed by the IT Industry will be eligible for total exemption from payment of electricity duty without any time limit.
• Liberal change of existing industry to IT: The state government shall permit setting-up of IT software units/IT parks in urban areas and change of existing industry to IT/IT parks.
• Floor area regulation (FAR): Relaxation in FAR shall be permitted up to 100 per cent for IT units and in all IT parks.
• Clearances and support : Escort services and single desk clearance for obtaining easy clearances and approval from various government departments shall be facilitated for the IT industries. On-line Clearance and Support Network (OCSN) will be established linking all the related departments/organisations. The secretariat for IT shall coordinate approvals and facilitation.
46 STATE POLICIES AND INCENTIVES Haryana April 2010
Sector-specific policies … (6/9)
IT Policy, 2000 (continued) Key incentives:
• Rebate on registration and transfer of property charges and exemption from stamp duty on a tapering scale shall be given for sale/ lease of built-up space to the IT Industry establishing facilities in private software technology parks (STPs), government STPs, and IT parks. The rebate would be applicable on the combined levy of registration fee, stamp duty and transfer of property duty. This concession would be available only for the first transaction, when the first sale by the infrastructure company is made to an IT industry.
• Sales tax concession to new units and for expansion/diversification will remain same as already provided for in the Industrial Policy.
• IT software industry will be totally exempted from payment of sales tax. The applicable rate of sales tax on computers and computer peripherals shall be reduced to 0.25 per cent.
• IT software and IT services shall be considered as a priority sector by the state evel financial institutions for lending assistance.
• IT software industry shall be exempted from the purview of no objection certificate (NOC) and consent regime of the Haryana State Pollution Control Board, except in respect of power generation sets of more than 10 kilo Volt ampere.
• Self-certification/exemption for the IT software industry shall be permitted regarding requirement of the Factories Act, employment exchange (Notification of Vacancies Act), Payment of Wages Act, Minimum Wages Act, Contract Labour (regulation and abolition) Act , Workmen Compensation Act , Haryana Shops and Establishments Act and Employees State Insurance Act.
47 STATE POLICIES AND INCENTIVES Haryana April 2010
Sector-specific policies … (7/9)
Haryana Special Economic Zone (SEZ) Act, 2005 Aim: To promote industrial townships with world-class infrastructure and create a conducive investment climate for export promotion. Key requirements: • Approval from the Project Approval Committee, which approves, modifies or rejects the application for setting-up the SEZ. • The developer is bound to provide rehabilitation of population by providing built-up houses, residential plots and amenities.
Key incentives: Exemption from payment of any tax, duty, fee, cess and other levies provided. 1. The following units shall be exempt from payment of any tax, duty, fees, cess or any other levies under any existing state law: • Any goods exported out of or imported into the SEZ. • Inter-unit transaction of goods within the SEZ. • Goods from the SEZ sent for value addition to the domestic tariff area and returned to the SEZ thereafter, and • Services that provide value addition to a product within the SEZ. 2. All transactions and transfers of immovable property or documents related thereto within the SEZ shall be exempt from stamp duty.
48 STATE POLICIES AND INCENTIVES Haryana April 2010
Sector-specific policies … (8/9)
Haryana Tourism Policy, 2008 Aim: To increase the earnings from tourism inflow at the rate of 10 per cent, annually, and promote sustainable tourism by encouraging a constructive and mutually beneficial partnership between the public and private sectors for economic development and employment generation. Policy focus:
• To promote tourism as a major engine of economic growth and capitalise on the potential of sustainable tourism for economic and employment generation.
• To acknowledge the critical role of private sector in development of tourism with the government working as a proactive facilitator and catalyst. The objective is to broaden and diversify the concept of tourism from only highway-tourism to eco- tourism, adventure-tourism, pilgrim-tourism, farm-tourism, golf-tourism, medical-tourism and heritage-tourism, etc., in order to meet new market requirements.
• To enhance the infrastructure, particularly, in the NCR, for the forthcoming Commonwealth Games, 2010.
• To enhance professional excellence in training human resources and providing infrastructure for human resource development.
• Develop a sustained and effective marketing strategy and plan.
• To use technology to achieve the goals mentioned above.
49 STATE POLICIES AND INCENTIVES Haryana April 2010
Sector-specific policies … (9/9)
Haryana Tourism Policy, 2008 (continued) Key incentives: 1. Incentives for new mega-projects :
• Mega projects with investment of US$ 21.7 million and above or any project employing more than 500 persons irrespective of investment would be extended the facility of financial assistance to be quantified at 50 per cent of the tax paid under the Haryana Value Added Tax Act, 2003, for a period of seven years from the date of start, as interest-free loan repayable after a period of five years from the date of grant of loan.
• Exemption from LADT for a period of five years.
2. Incentives for new small projects:
• Hotel/tourism projects with investments up to US$ 600,000 would be extended financial assistance in the shape of interest-free loan to be quantified at 50 per cent of the tax paid under the Haryana Value Added Tax Act, 2003, for a period of five years from the start-date, to be repayable after a period of five years.
3. Exemption from electricity duty:
• Exemption from electricity duty to the new tourism/hotel projects for a period of five years from the date of release of electric connection or from the date of eligibility.
50 HARYANA April 2010
Contents
Advantage Haryana
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Haryana
Company logos cited in this section are registered trademarks of the respective companies
51 BUSINESS OPPORTUNITIES Haryana April 2010
Automotive industry
• Haryana is a preferred destination for auto majors Key players and auto-component manufacturers, and host to many large players. • Maruti Suzuki • Hero Honda
• The state produces half of the passenger cars and • Honda Motorcycle and Scooter India two-wheelers in the country. • Sona Koyo Steering Systems
• Yamaha Group • A significant percentage the state’s workforce is engaged in the automotive industry, important • Escorts automobile centres are Gurgaon and Faridabad. • Munjal Showa
• Delphi Automotives Systems • The International Centre for Automotive Technology (iC AT) has been set-up at Manesar as a part of the • Talbros Automotive components National Automotive Testing and R&D Infrastructure • Rico Auto Industries Project (NATRIP). It provides testing and R&D • Omax Auto services to the industry. • Motherson Automotive Technologies & Engineering (MATE)
• Asahi India Safety Glass
• General Motors India
52 BUSINESS OPPORTUNITIES Haryana April 2010
Automotive – company profiles … (1/3)
Maruti Suzuki India • Maruti Suzuki India has a market share of more than 50 per cent in the Indian passenger car market. Its Gurgaon facility has three, integrated plants with a production capacity of 630,000 cars per year, the fourth plant at Manesar was inaugurated in February 2007. The Gurgaon plant will eventually serve as a base for engine assembly and machining, while automobile assembly will be done at the Manesar plant.
Hero Honda • Hero Honda is world’s single-largest motorcycle company. It has built two world-class manufacturing facilities at Dharuhera and Gurgaon, with an annual production capacity of three million bikes per year. Honda Motorcycle & Scooter • HMSI is a100 per cent subsidiary of Honda Motor Company, Japan. It has a factory at India (HMSI) Manesar with an installed capacity of 600,000 scooters and 400,000 motorcycles per annum. The cumulative investment of the company in the state has reached US$ 124 million. It has established its R&D facility at Gurgaon; one of three such facilities, globally.
Escorts • Escorts is a leading engineering conglomerate in high growth sectors of agri machinery, construction and material handling equipment, railway equipment and auto-components. It has its corporate headquarters and manufacturing facilities for tractor assembly, transmission and engines, crankshaft and hydraulics in Faridabad.
Yamaha Motors • Yamaha Motors is a100 per cent subsidiary of Yamaha Motor Company Limited, Japan. The company has around 2,000 employees and has a countrywide network of over 400 dealers. It has manufacturing plant in Faridabad, which supplies bikes to the domestic as well as overseas market.
53 BUSINESS OPPORTUNITIES Haryana April 2010
Automotive – company profiles … (2/3)
Sona Koyo Steering Systems • Sona Koyo Steering Systems is one of the largest manufacturers of steering gears in India, with a 50 per cent market share. It is a leading supplier of hydraulic power steering systems, manual rack and pinion steering systems, collapsible, tilt and rigid steering columns, rear axle assemblies and propeller shafts. It has a manufacturing facility in Gurgaon.
Delphi Automotive Systems • Delphi is a100 per cent subsidiary of the US based, Delphi Automotives. The Haryana Private Limited facility is in Gurgaon and manufactures catalytic converters and evaporator canisters and is one of the largest operations of its kind in the country. Talbros Automotive Components • Talbros is a manufacturer of automotive and industrial gaskets in India. The company’s manufacturing facilities in Haryana are located at Faridabad, Gurgaon, Bawal and Sohna.
Munjal Showa • Munjal Showa manufactures shock absorbers and struts for leading two-wheelers and four-wheelers. It has a manufacturing plant in Gurgaon.
Omax Auto • Omax Auto is among the top domestic auto-ancillary players in India. It manufactures sheet metal, tubular and machined components and sprockets for two-wheelers and four- wheelers at its two plants in Dharuhera (Haryana).
54 BUSINESS OPPORTUNITIES Haryana April 2010
Automotive – company profiles … (3/3)
Motherson Automotive Technologies • Motherson Automotive Technologies & Engineering (MATE) is a division of Motherson & Engineering (MATE) Sumi Systems Limited (MSSL). It specialises in manufacturing large-size injection moulding, blow moulding, compression moulding and vacuum forming. MATE also manufactures a wide-range of plastic components for the automotive and the non- automotive industry. The manufacturing capacity of MATE is located at Manesar in Gurgaon.
Asahi India Safety Glass Limited • Asahi’s product range includes basic glass, tinted, reflective, mirror, auto and some other new products and services. The office of Asahi is located in global business park, Mehrauli Gurgaon Road (M.G. Road) in Haryana. The company caters to the glass products requirement of the automotive industry.
Rico Auto Industries • Rico is an engineering company supplying a range of high precision fully machined aluminum and ferrous components and assemblies to automotive original equipment manufacturers (OEMs) across the globe with a turnover of US$ 285 during 2009. Rico is headquartered at Gurgaon and has a plant at Dharuhera, both situated in Haryana.
General Motors India Private Limited • General Motors India Private Limited, founded in 1995, is a wholly-owned subsidiary of General Motors and is engaged in the automobile business in India. Its subsidiaries are Opel India Private Limited and Chevrolet Sales India Private Limited. The company employs around 4,000 people. It has its headquarters in Gurgaon.
55 BUSINESS OPPORTUNITIES Haryana April 2010
IT/ITeS industry
• Gurgaon has emerged as a preferred destination for Key players the IT Industry in north India. • IBM Daksh • Convergys India Services • Haryana is among the leading states in terms of IT • Genpact exports. Out of total exports of US$ 6.5 billion from the state in 2006-07, US$ 3.0 billion was contributed • Tata Consultancy Services by the software and IT enabled services. Software • WNS exports from Haryana, during the year, 2007-08 was • Wipro Infotech US$ 3.9 billion. • Evalueserve • Accenture Technology Solutions • Microsoft • Haryana is the first state to have implemented its • Google state wide area network (ADHAAR) for voice, data • Oracle and video transmission. The SWAN vertical • Polaris Holdings Limited connectivity – at the state network management • HCL centre, district network management centres • Hughes Communications (DNMC) and block network management centres (BNMC) – has been completed and is in operation. • Alcatel • IBM • Siemens • National Informatics Center
56 BUSINESS OPPORTUNITIES Haryana April 2010
IT/IT e S – company profiles … (1/6)
IBM Daksh • IBM Daksh is a leading provider of business process solutions, with its corporate office in Gurgaon. The company has 25 service delivery centres at nine locations in India and Philippines, and employs more than 30,000 persons, making it the second-largest business process outsourcing (BPO) vendor in India, in terms of headcount.
Convergys India Services • Convergys has three operating centres in Gurgaon at DLF Atria, Orchid Square and Unitech Trade Centre. The company offers diverse portfolio of customer care solutions, including customer care services, simple-to-complex technical support solutions, marketing sales programs and back-office BPO.
Tata Consultancy Services (TCS) • TCS is a leading IT services company with global revenues of US$ 5.7 billion in 2007-08. It has over 120,000 IT consultants in 42 countries. TCS has many centres across India and provides IT infrastructure services, enterprise solution services, BPO services to industries such as banking and financial services, energy, government and healthcare, and life sciences. It commenced operations at Gurgaon in 1995.
WNS • WNS is one of the pioneers in offshore BPO. It serves clients in domains such as travel and transport, insurance, healthcare, shared services and knowledge services.
• WNS achieved revenues of US$ 539.3 million in 2008-09, representing an increase of 17.3 per cent over the previous year. 1t has a 40,000 sq ft facility in Gurgaon with a capacity of 3,500 associates.
57 BUSINESS OPPORTUNITIES Haryana April 2010
IT/IT e S – company profiles … (2/6)
Genpact • Genpact is among the largest business services and technology solutions company in India; operates in the BPO and knowledge process outsourcing (KPO) domains. It provides a wide range of services, including finance and accounting, collections and customer service, insurance, supply chain and procurement, analytics, enterprise applications, IT infrastructure and management. It is headquartered in Gurgaon; operations in Gurgaon have more than 7,000 employees.
Wipro Infotech • Wipro Infotech is one of the largest IT firms in the country. It has an clientele including many of the fortune1,000 and global 500 companies. Its revenues were about US$ 1.05 billion in 2008-09 with a year-on-year growth of 10 per cent. The call centre at Gurgaon has a capacity of 2,000 seats.
Evalueserve (EVS) • It is a leading provider of KPO services. It provides custom market research, business research, analytics, investment research, intellectual property research and marketing and sales support services from its global research centres. It has three operation centres in India, all located in Gurgaon.
Accenture Technology • ATS is a subsidiary of Accenture, and provides technology solutions to the client. The solutions Solutions (ATS) work is mainly off-shored India, Philippines and Romania . The technologies developed here include enterprise packages such as SAP R/3, Siebel, PeopleSoft, Oracle, Microsoft, Java/J2EE and Mainframes based platforms.
• Accenture India Delivery Center (IDC) is one of the off shore development centres of ATS. All the India delivery centres are CMMI Level-5 certified. IDCs in India are located at Bangalore, Chennai, Hyderabad, Mumbai and Pune. The IDC in NCR region is in Gurgaon.
58 BUSINESS OPPORTUNITIES Haryana April 2010
IT/IT e S – company profiles … (3/6)
Microsoft • Microsoft entered India in 1990 and works closely with the Indian government, IT industry, academia and the local developer community. Microsoft has offices in 16 cities viz., Ahmedabad, Bangalore, Chandigarh, Chennai, Coimbatore, Hyderabad, Indore, Jaipur, Jamshedpur, Kochi, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi and Pune.
• Microsoft in India employs about 5,000 people and the six business units in India represent the complete Microsoft product lifecycle. In Haryana, Microsoft has two offices, both at Gurgaon.
Google • Google, a web-based search engine, is the flagship product owned by Google Inc. The special features offered by Google include synonyms, weather forecasts, time zones, stock quotes, maps, earthquake data, movie-show times, airports, home listings and sports scores, etc.
• Google has a sales office in Gurgaon. It is a direct sales organisationand helps the world's biggest advertisers to enjoy immediate and accountable communication with the consumer. The sales teams here is structured according to industry verticals.
Oracle • Oracle Corporation specialises in developing and marketing enterprise software products — particularly database management systems. Its flagship product, is the Oracle database. Besides, the company also builds tools for database development and systems of middle-tier software, enterprise resource planning software (ERP), customer relationship management software (CRM) and supply chain management (SCM) software. Oracle is located in Gurgaon in Haryana.
59 BUSINESS OPPORTUNITIES Haryana April 2010
IT/IT e S – company profiles … (4/6)
Polaris Holdings Limited • Polaris Holdings was founded in 1993 and is a banking and insurance software company. It offers solutions for core banking, corporate banking, wealth and asset management, and insurance sectors. The Polaris Enterprise Solutions Center is located in Udyog Vihar, Gurgaon.
HCL • HCL Technologies is a global IT Services company headquartered in Noida. HCL Technologies, along with its subsidiaries, had consolidated revenue of US$ 2.3 billion as of September 2009 and employed 54,443 persons.
• HCL’s key services include custom applications, enterprise applications, enterprise transformation, engineering and R&D services, infrastructure management and BPO.
• HCL has centres at Udyog Vihar in Gurgaon.
Hughes Communications India • HCIL a subsidiary of Hughes Communications Inc, USA, and is among the largest Limited (HCIL) satellite service operators in India.
• HCIL was incorporated in 1992. It deals in all aspect of broadband technology, network solutions and services.
• It is located in the Electronic City, Gurgaon.
60 BUSINESS OPPORTUNITIES Haryana April 2010
IT/IT e S – company profiles … (5/6)
Alcatel • Alcatel-Lucent provides solutions to enable service providers, enterprises and governments worldwide in delivering voice, data and video communication services to end-users.
• Alcatel-Lucent in India operates in three countries: India, Bhutan and Nepal. It is engaged in R&D, sales, marketing, customer support, services, operations and development of embedded as well as application software for telecom networks in the region.
• Its India’s headquarters are in Gurgaon.
IBM • IBMs’ faclility was opened in June 2000 in Gurgaon.
• It is spread over an area of over 10,000 sq ft The e-business software centre is conceived as a focal point of IBM's activities to enable e-business in India.
61 BUSINESS OPPORTUNITIES Haryana April 2010
IT/IT e S – company profiles … (6/6)
Siemens • Siemens has been active in India for over 50 years and it holds leading positions in energy, industry and healthcare sectors.
• As of September 2008, sales to customers in India amounted above US $ 3 billion. New orders totaled nearly US $ 4.4 billion. Siemens currently has over 17,200 employees in India.
• In Gurgaon, Siemens has many offices of Siemens Limited, Software Development & Engineering Centre, Siemens Building Technologies Private Limited, Siemens Information Systems Limited, Siemens Power Engineering Private Limited, Siemens Product Life Cycle Management Software India Private Limited and Siemens Automation and Drives.
National Informatics Center (NIC) • NIC is located in the mini secretariat building and was established in 1988. It serves the district administration and the office of divisional commissioner of Gurgaon Division. Backed by the technical expertise of NIC, the district has executed some of the best valued IT projects.
• Key projects include Online Treasury Information System (OTIS), Haryana Registration Information System (HARIS), Haryana Pension Information System (HaPIS), and the Motor Vehicle Registration System and Driving License Information System.
62 BUSINESS OPPORTUNITIES Haryana April 2010
Agro-based industry
• Agriculture is one of the biggest employment Key players generators in rural Haryana with strong potential for value addition and exports. • Yakult Danone
• GlaxoSmithKline Consumer Healthcare • The Department of Horticulture is encouraging a • Perfetti Van Melle India cluster approach for the development of fruit cultivation. • Nestle • Haldi Ram
• Dairy farming has huge potential in rural areas and is • Pepsi being promoted as a self-employment venture, the per capita milk availability in Haryana is among the top three states in the country. Key organisation
• National Dairy Research Institute (NDRI) • Hrayana promotes organic farming, aggressively, financial assistance is provided to farmers for production and use of vermi-compost.
• Use of greenhouse technology is being encouraged to promote disease-free nursery and production of off- season fruits and vegetables.
63 BUSINESS OPPORTUNITIES Haryana April 2010
Agro-based industry – company profiles … (1/2)
Yakult Danone India Private • Yakult is a global probiotic drink manufacturer. The company is a 50:50 joint venture Limited between Japan's Yakult Honsha and Group Danone of France. The company plans to expand its business in India. It has a state-of-the-art manufacturing facility at Rai in Sonepat.
GlaxoSmithKline Consumer Healthcare Limited (GSK) • Indian group company of GlaxoSmithKline UK, and one of the largest players in the health- food drinks industry in the country, GSK has a factory at village Khera in Sonepat; has a capacity of 26,000 tonnes per annum for its health foods brand, Horlicks.
Perfetti Van Melle India • Perfetti Van Melle, India, started operations in India in 1992; the company has a factory at Manesar. It launched its first popular candy brand, “Center Fresh”, in the Indian market in 1994. It leads the Indian sugar confectionery market with more than 25 per cent of the value share.
Nestle India • Nestle India, is a subsidiary of Nestle SA, Switzerland. It has its Indian headquarter at Gurgaon in Haryana. It has famous brand names in India such as Nescafe, Maggi, Milkybar, Milo, Kit Kat, Bar-One, Milkmaid, Nestea, Nestle Milk, Nestle Fresh 'n' Natural Dahi and Nestle Jeera Raita. The company has factory at Samalkha in Panipat, which was commissioned in 1993, to manufacture milk products.
Haldi Ram • Haldiram's was started in Bikaner and, presently, is one of India's largest sweets and snacks manufacturers. It sells packaged products which are not only consumed in domestic markets but also exported to various countries viz., Pakistan, Canada, Australia, Sri Lanka, Singapore, Malaysia, South Africa, Indonesia, Qatar, Hong Kong, Japan, Kenya, Libya and South Korea. Haldiram also has its own outlets where it sells sweets and eatables. In Haryana, Haldi Ram Manufacturing Co Private Limited is located in village Kherki Duala on the Delhi-Jaipur highway.
64 BUSINESS OPPORTUNITIES Haryana April 2010
Agro-based industry – company profiles … (2/2)
Pepsi • PepsiCo established its business operations in India in 1989. The company has a diverse range of products including carbonated drinks, potato chips, etc. It provides direct and indirect employment to 150,000 people in India. It has 41 bottling plants in India, of which 13 are company-owned and 28 are franchisee-owned. It has its corporate office in Haryana at Gurgaon.
National Dairy Research Institute • National Dairy Research Institute provides R&D support for dairy development (NDRI) programmes of the nation. The institute was opened in Bangalore in 1923 and in 1955, its headquarters were shifted to Karnal, Haryana at the location, formerly, called Central Cattle Breeding Farm.
• The Institute at Karnal is located on 560 hectare of land, of which 360 hectare is used for fodder cultivation. The unique facilities provided here include various research divisions, national library in dairying, the cattle yard, embryo biotechnology centre, animal biotechnology division, agricultural technology information centre (ATIC), artificial breeding complex, farm and maintenance sections, krishi vigyan kendra, trainers' training centre, computer centre, and a dairy plant.
• The institute offers various teaching programmes at graduate, post-graduate and doctorate level in order to develop trained man power in dairying to meet human resource challenges at national and international level.
65 BUSINESS OPPORTUNITIES Haryana April 2010
Textiles
• Abundant availability of raw material gives Haryana a Key players competitive advantage in the textile sector – cotton
production in 2007-08 was roughly 1.88 million bales and • DCM Textiles an estimated 1.71 million bales in 2008-09. • Orient Craft
• Cotton productivity in 2008 (Kharif season) was 665 kg per • Benetton India hectare. • YKK India Private Limited
• Pearl Global • Production of textiles (including ready-made garments) in • GIVO Haryana is roughly US$ 1 billion business, annually, and almost one-third of this is exported.
• A cluster of high-fashion readymade garments units have come up in the well-developed industrial area of Udyog Vihar, Gurgaon.
66 BUSINESS OPPORTUNITIES Haryana April 2010
Textile – company profiles … (1/2)
DCM Textiles • The company is engaged in the manufacturing of 100 per cent grey cotton yarn and melange yarn. It has a spinning mill located in Hisar with an installed capacity of 74,436 spindles. The company is exporting to Spain, Portugal, Egypt, South Korea, Brazil, Hong Kong, Italy and Israel.
Benetton India • Benetton India is a wholly-owned subsidiary of the Benetton Group, Italy. United Colours of Benetton is among the market leaders in branded apparel, with more than 106 stores across 45 cities. Its manufacturing unit in Gurgaon manufactures almost 50 per cent of the garments supplied to the Indian stores.
Orient Craft Limited • The company is located in Gurgaon and employs 3,000 people; has established itself as a premium exporter of textiles from Haryana. It has embarked on an initiative to set- up a textile-focused SEZ spread over 334 acres in Manesar. This SEZ will provide employment to 50,000 people when fully operational in 2011; the first phase of the project is expected to be complete in 2010.
YKK India Private Limited • YKK India is a subsidiary of YKK Japan, which operates in over 50 countries with more than 200 factories. The factory located at Bawal produces a range of zippers and caters to the large domestic market for garments and footwear and also exporters.
67 BUSINESS OPPORTUNITIES Haryana April 2010
Textile – company profiles … (2/2)
GIVO • GIVO has been set up with technical and financial collaboration of Marzotto Spa of Italy and it supplies classic men's-wear, using state-of-art-equipment imported from Europe. Givo exports a major portion of its production to USA, Canada, Europe and Middle East. In Gurgaon, the registered office is located at 42nd Milestone, Kherki Daula.
Pearl Global • Pearl Global limited is the subsidiary of House of Pearl Fashions Limited Group, which is among the pioneers of ready-to-wear apparel industry in India. The company has six fully-integrated manufacturing plants in Gurgaon, which are capable of producing value- added woven and knitted garments. The total factory area in north India covers more than 310,000 sq ft of space. The installed capacity on a single-shift basis stands at 10 million pieces per annum. The units specialize in casual-wear dresses, ladies blouses in both woven and knits. The important customers of the company include Gap Inc, JC Penney, Kohls, Next, H&M, and Esprit.
68 BUSINESS OPPORTUNITIES Haryana April 2010
Petrochemicals
• The upcoming petrochemicals-hub at Panipat is expected to drive the growth of the petrochemicals industry in north India; through the 5,000-acre project, which is jointly set-up by HSIIDC and Indian Oil Corporation Limited (IOCL).
• The new complex is a dedicated industrial zone for downstream industries and is likely to attract an investment of US$ 3.26 billion.
• The state government, in collaboration with the central government, aims to set up the 'Central Institute of Plastic and Engineering Technology' to undertake R&D and create skilled manpower for the development of petrochemicals industry.
Indian Oil Corporation • Indian Oil Corporation (IOC) manufactures petroleum products, crude oil, lubricants, grease, oil base, additives and others.
• It has set up its seventh refinery at Panipat, with an installed capacity of 6 million metric tonnes per annum (MMTPA), at a cost of US$ 830 million; its capacity has been increased to 12 MMTPA and is in the process of increasing it further to 15 MMTPA by April 2010.
• It has announced the setting-up of the US$ 67 million Mundra-Panipat pipeline and naptha- cracker complex at Panipat.
• Naphtha cracker and polymer complex adjacent to the Panipat refinery are being set-up with an investment of US$ 3.14 billion.
69 BUSINESS OPPORTUNITIES Haryana April 2010
Real estate and construction
• The real estate and construction industry has been Key players growing at a rapid pace in Haryana, growth in real estate encompasses activities in the • DLF Group residential, commercial and hospitality space. • Unitech Group
• Ansal Group • Real Estate Development Council (REDCO) is the apex • Emaar MGF body for all stakeholders in the housing and construction industry, it was launched jointly by the • Vipul Group Government of Haryana and the Ministry for Urban Development, Government of India.
• The aim is to make Gurgaon one among the top-ten cities of the world in a period of ten years, Gurgaon accounts for more than 70 per cent of the new commercial space coming up in the National Capital Region (NCR).
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Real estate and construction – company profiles … (1/2)
DLF Group • DLF Group is one of the largest real estate players in India. The group is responsible for the development of 22 urban colonies, as well as an entire integrated 3,000-acre township - DLF City in Gurgaon.
• In August 2009, the foundation stone was laid for the first private metro rail project in the country. It is to be developed in Gurgaon by the DLF-IL&FS consortium. The 6.1 km project is to be completed within the period of 30 months from the day of the signing of the agreement.
Unitech Group • Unitech is a large real estate player, which has executed projects in Gurgaon with world-class service facilities. They include Nirvana Country, Unitech World, Unitech Trade Centre, Unitech Business Park, Millennium Plaza (jointly developed with Vipul), Signature Towers and Global Business Park (jointly developed with Vipul).
Vipul Group • Vipul Limited has over 3 million sq ft in the residential and commercial real estate space, with prestigious projects in Gurgaon such as the Vipul Square, Global Business Park (jointly developed with Unitech), Vipul Agora, Vipul Plaza and Millennium Plaza (jointly developed with Unitech).
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Real estate and construction – company profiles … (2/2)
Ansal Group • Ansal Group has expanded its activities from real estate development to high-value construction.
• It is present in Gurgaon through several projects in both the residential and commercial space.
• The group presently employs over 5,000 persons. Emaar MGF • Emaar MGF is a joint venture between Emaar Properties PJSC Dubai, a leading global real estate company, and MGF Development Limited, India’s leading real estate developer.
• Has several housing and commercial projects in the state.
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Biotechnology
• Yes Bank is mandated along with Scott Wilson Key players Kirkpatrick India to develop the Biotech City along the State’s Kundli-Manesar-Palwal (KMP) • Proagro Seeds Company Private Limited expressway. • Eli Lilly
• Ranbaxy Laboratories • Establishment of research centres and laboratories in collaboration with the private sector is being encouraged.
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Biotechnology – company profiles
Proagro Seeds Company • Proagro Seeds Company Private Limited is a company of the Bayer CropScience Group. Private Limited Proagro seeds is a leading seed company in India. It is engaged in breeding, development, production and marketing of high quality hybrid field seeds.
• The company has a biotech laboratory in Gurgaon where genetic markers, DNA finger printers and other tested techniques are used to support the company’s plant breeding efforts.
Eli Lilly and Company (India) • Eli Lilly and Company (India) Private Limited is a subsidiary of the US pharmaceutical major, Eli Private Limited Lilly and Co. It focuses primarily on therapeutic areas such as neurological disorders, endocrine disorders, cancer, cardiovascular diseases, bone and inflammation and gene regulation and has 500 employees across the country.
• In India, Eli Lilly has based its operations in Gurgaon and conducts clinical trials of biotech drugs from its global portfolio, in India.
Ranbaxy Laboratories • The company manufactures and markets branded and generic pharmaceuticals and active pharmaceutical ingredients (API). In 2007-08, the company recorded global sales of US$ 1,682 million.
• It is based in Gurgaon, but has over 12,000 employees worldwide with over 1,200 scientists for research.
• The R&D centres in Gurgaon focus on novel drug delivery systems, new drug discovery and development functions.
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Contents
Advantage Haryana
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Haryana
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Key approvals required
Approvals and Department Estimated time clearances required Site and/or environment clearance: 60 days Site clearances and no- No-objection certificate to establish: 7 days Department of Environment objection certificate No-objection certificate to operate: 21 days Renewal of consent: 30 days Letter of intent/industrial license: 15 days Permanent registration as SSI: 7 days Licence, registration and Department of Industries Grant benefit of sales tax concessions: 90 days change of industrial land Allotment of plot: 30 days Change of industrial land: 30-60 days Sanction at local level: 30 days Incentives Department of Industries Sanction at headquarter/state-level: 45 days Load up to 20 KW: 36 days Load up to 70 KW: 66 days Release of power connection Haryana State Electricity Board Load above 250 KW: 90 days Load above 1 MW: 105 days Sanction of loans HSIIDC/HFC Sanction of loan: 30 to 45 days
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Cost of doing business in Haryana
Cost parameter Cost estimate Source
Industrial land purchase US$ 350 to US$ 375 at IMT, Manesar Property dealers (per sq m) US$ 435 to US$ 1,000 in Gurgaon
Office space rent (per sq ft) Gurgaon: US$ 1.4 to US$ 3.1 per month Property dealers
Residential rent (2,000 sq ft) Gurgaon: US$ 400 to US$ 825 per month Property dealers
Five-star hotel room rent US$ 140 to US$ 200 per room night Leading hotels in the state
Power US 9.5 cents per kilo Watt hour Haryana Electricity Regulatory Commission (Commercial and industrial)
Water (per 1,000 litres) US 6 cents Water supply and sanitation department
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Single-window clearance mechanism • Single-window clearance mechanism was established under the Haryana Industrial Promotion Act, 2005. It has a three-tier structure to grant exemption/relaxation from any of the provisions/rules of the Act.
• The investment promotion centres (IPC) located in New Delhi and Chandigarh and the district industries centres (DIC) at the district level act as the nodal agencies and provide support to the committees. Investment Under the Nodal handled chairmanship of agency
Greater than High Powered Clearance Principal US$ 7.14 Secretary to million Committee Chief Minister IPC – State Level
DIC State Level US$ 1.19 to Principal – District Level US$ 7.14 Clearance Committee Secretary million Industries
Less than District Level Deputy US$ 1.19 Clearance Commissioner million Committee
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Key investment promotion offices
Haryana State Industrial and • Focuses on the development of medium and large-scale industries. Infrastructure Development • Provides financial assistance by way of term loans, equipment re-finance, equipment leasing Corporation Limited (HSIIDC) and working capital. Haryana Agro Industries • Has been engaged in trading activities such as sale of seeds, fertilizers, pesticides, tractors Corporation Limited (HAIC) and other agricultural machinery at economical prices to the farming community.
Haryana State Electronics • It is the nodal agency of the Haryana government for promoting electronics and IT Development Corporation industries. Limited (HARTRON) • It offers its expertise in infrastructure development as well as promotion of projects.
• Is responsible for promoting and securing development of urban areas; responsibilities Haryana Urban Development include land acquisition, development, and sale of property for residential, industrial and Authority (HUDA) commercial purposes.
Haryana Finance Corporation • Meets the credit needs of small and medium scale industrial units by advancing term loans. (HFC)
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Contact list
Agency Contact information
Plot No C-13-14, Sector 6, Haryana State Industrial and Infrastructure Development Panchkula-134109 Corporation Limited (HSIIDC) Phone: 91-172-2590 481 Fax: 91-172-2590 474
C-3, Sector-6, Panchkula Haryana Urban Development Authority (HUDA) Phone: 91-172-2560 024 Website: http://huda.nic.in
Bays 17-18-19, Sector 17-A, Chandigarh-160017 Haryana Finance Corporation (HFC) Phone: 91-172-2702 755-57 Fax: 91-172-2702 666 E-mail: [email protected]
Haryana State Electronics Development Corporation SCO-111-113, Sector 17-B, Limited (HARTRON) Chandigarh -160017 E-mail: [email protected]
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Annexure
Exchange rates
Year INR equivalent of one US$ 2000 46.60 2001 48.30 2002 48.04 2003 45.60 2004 43.70 2005 45.20 2006 45.00 2007 42.00 2008 40.20 2009 46.00
Average for the year
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