uttarakhand - ibef · pdf file... haridwar and rishikesh and t heir inter-city linkage routes....

Uttarakhand | December 2008

UTTARAKHANDDecember 2008

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December 2008


State economy and Socioeconomic profileSocioeconomic profile

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U kh d hUttarakhand – a snapshot

• Formed on November 9, 2000

27th state of India• 27th state of India

• Formed by joining 14 hilly districts of Uttar Pradesh

• Area: 53,483 Sq. Km

• Population: 8.5 million

• Strategically located:

• Shares borders with Nepal and Tibet (China)

• Himachal Pradesh in the West and Northwest, Gangetic plains of Uttar Pradesh in the south

• Diverse geographical features:

• Snow-capped mountain peaks in the north

• Tropical forests in the south

• Equally diverse is its climate and vegetation

• One of the five states in India to be declared as UNESCO's world heritage biodiversity sites

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• Administrative and legislative capital: Dehradun

3


Socioeconomic snapshot Capital Dehradun

Area 53,483 Sq. Km.

Population (Census 2001) 8.5 millionPopulation (Census 2001) 8.5 million

Density (2001) 158 per Sq. Km.

Sex ratio (Census 2001) 962 females per 1000 males

Principal languages Hindi, Garhwali, Kumaoni

Literacy rate (Census 2001) 71.6 per cent

Major minerals Limestone, soapstone and magnesite

Major industriesHydropower, floriculture, horticulture, agro basedand food processing industries, information andcommunication technology, biotechnology

Major crops Rice, wheat, barley, corn, mandua and hangoraj p ce, eat, ba ey, co , a dua a d a go a

GSDP at current prices in 2005-2006 US$ 6,331.1 million

NSDP at current prices in 2005-2006 US$ 5,508 millionAnnual per capita income at current prices in

www.ibef.orgSource: Uttarakhand state official website

Annual per capita income at current prices in 2005-2006 US$ 691.17

Domestic airports Jolly Grant, Pant Nagar

4


E i filEconomic profile

• The Gross State Domestic product (GSDP) of the state

at current prices in 2005 – 2006 was US$ 6331.1 million.

GSDP (US$ million)

5365.56

6331.1

4000

5000

6000

7000

• The Net State Domestic Product (NSDP) of the state in

2004 – 2005, at current prices was US$ 5508 million.

• The services sector contributes to more than half of the

1332.221916.66

2845.81

0

1000

2000

3000

4000

state’s GDP at 51 per cent, followed by the agricultural

and mining sector at 24 per cent and the manufacturing

sector at 25 per cent in 2004-2005.

1993-1994 1996-1997 2000-2001 2004-2005 2005-2006

Sector contribution to GSDP (2004-2005)

• The state is essentially driven by the tertiary sector;

tourism being one of the key sectors contributes majorly

to the state’s economy.

25%

• 24 per cent of the GSDP is contributed by the primary

sector which includes agriculture, cultivation, mining

activities etc.

S Utt kh d t t t

51%

24%

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Source: Uttarakhand state government

Tertiary Sector Secondary Sector Primary Sector

5


S i i filSocioeconomic profile

• Per capita income grew at a CAGR of 5.2 per cent per Per capita income (US$)

annum between 1993-1994 and 2004-2005.

• In 2005-2006, the per capita income of the state stood

at US$ 691 338

595691

400

500

600700

800

at US$ 691.

• State’s literacy rate has increased considerably from

57.75 per cent in 1991 to 71.60 per cent in 2001; higher

178245

338

0

100200

300400

1993-1994 1996-1997 2000-2001 2004-2005 2005-2006

than India’s average literacy rate of 65.38 per cent.

• As per 2001 census, the Work Participation Rate

1993 1994 1996 1997 2000 2001 2004 2005 2005 2006

(WPR) is 36.93 per cent for Uttarakhand and 39.30 per

cent for India.

Source: Uttarakhand state government

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g

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Infrastructure Status

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Ph i l i f t t

• Deployed 345 Km of rail routes by 2005-2006

Railways

Physical infrastructure

Deployed 345 Km. of rail routes by 2005 2006.

• As on March 31, 2005, density of rail routes is 6.45 route Km. per thousand Km.

• State plans to increase the share of railways in cargo and passenger transportation.

• Efforts being made in conjunction with the Urban Development Department to establish ‘Mono Rail System’ in g j p p y

Dehradun, Haridwar and Rishikesh and their inter-city linkage routes.

Source: Directorate of Economics and Statistics, Uttarakhand

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Ph i l i f t tPhysical infrastructure

Airways

Flight connectivity Only from Delhi

No. of airports Two

• State aims at positioning air-transport as a reliable all-weather transport option in hills.

• Upgradation work at the Pantnagar airport to facilitate international flights is under progress.

• Government has allocated US$ 0.23 million for construction of at least one helipad per

district.


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Ph i l i f t t

RoadsTotal road network 28,508.58 Km.

Physical infrastructure

F 2006 t 2007 t t l l th f d t k 28 508 58 K

Total road network 28,508.58 Km.

National highways 1,327.60 Km.

State highways 1,542.78 Km.

• From 2006 to 2007, total length of road network was 28,508.58 Km.

• Then national highways coverage stood at 1328 Km, and the state highways coverage stood

at 1553 Km in 2006-2007.

• 9,419 villages out of a total of 15,656 were well-connected as in March 2005.

• Public works department of the state has planned several build –operate–transfer projects

under public private partnerships.p p p p


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Ph i l i f t tPhysical infrastructureTransport network in Uttarakhand

RoadsRailway trackN ti l hi h

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National highwayAirport

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Ph i l i f t t U b

Urban infrastructure

Physical infrastructure – Urban

• Urban infrastructure development became a priority sector for the state government since

2005-2006, with an allocation of US$ 20.33 million for its activities

• This was further increased to US$ 58 84 million for the year 2006 2007• This was further increased to US$ 58.84 million for the year 2006-2007.

• State housing projects have been taken up under various urban infrastructure development

projects

275 h i j t i H id i f th i t f h j t• 275 acre housing project in Haridwar is one of the instances of such projects

• With an aid of US$ 15.12 million from the Government of India, conservation and rejuvenation

project of Naini Lake and four other lakes in the surrounding areas have been taken up

Source: Uttarakhand State Government

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Ph i l i f t t P 1/2Physical infrastructure – Power - 1/2

• Being developed as an ‘energy state’ to tap its huge hydro power potential of 20,000 MW

• State intends to increase its capacity to 5,000 MW hydro electric power by 2011-12

Power

• State has simultaneously supported alternate sources of power generation; solar water heaters with heating

capacity of 97,500 litres per day, seven biogas-bracketing plants, 12 solar plants, and a state level energy park

in Dehradun

• Number of electrified villages grew to 15,547 in 2006-2007


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Ph i l i f t t P 2/2

Input 2001 2006 Growth/ achievement

Physical infrastructure – Power - 2/2

Villages electrified (No.) 12563 15290 1814

Hamlets electrified (No.) 703 3368 2665

BPL connections (No.) - 82243 82243

PTW connections (No.) 16667 19107 2440

Consumers (No.) 816949 1065356 248407

Rural electrification % (incl. UREDA ) 79 95.48 16.48

ATandC losses (per cent) 45.07 38.79 -6.28

Annual per capita consumption (KWh) 413 654 241

Human capital workforce (No.) 5807 4998 -809


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U b i f t t 1/2Urban infrastructure – 1/2

• Concentrated effort to ensure supply of pure drinking water

• State government is encouraging traditional methods of water harvesting like nauley, dharey, chal and

khal.

• In 2005-2006, US$ 76.28 million was the spend on improvement of water supply systemsy y

• Government proposes to spend US$ 86.05 million on further improving the water supply in the state in

2006-2007

Drinking water supply details in Uttarakhand (2006-2007)Inhabited revenue villages covered 15,547

Population covered 6 465 millionPopulation covered 6.465 million

Scarcity villages 2

Scarcity hamlet

(i) Not covered (N.C.) 3,805

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(ii) Partially covered (P.C.) 12,247Source: Uttarakhand State Government

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Urban infrastructure – 2/2

Development under total sanitation for village in Uttarakhand

2000 2001 2005 2006

10,3164,506 2,834 5,067

31,549

7,590 5,330 5,823

2000-2001 2005-2006

Individual toilets constructed

Compost pits constructed

Soakpits Garbage pits

• Government has undertaken development of total sanitation systems for villages in the state

• Worked at developing the waste disposal system under ‘Total Sanitation’ campaign

P ti l t h b id d f thi d f th t i th t t• Partial sewer arrangements have been provided for one-third of the towns in the state


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Social infrastructure - health

State has a good network of hospitals and health centres; health and population policy were laid to

improve the quality of life of the populace, with focus on developing an effective health


infrastructure.

Following objectives were laid down by the state in its health and population policy:

• Eradicate polio by 2007Eradicate polio by 2007

• Reduce the level of leprosy to below one per 10,000 population by December 2007

• Reduce mortality on account of tuberculosis, malaria, and other vector and water-borne diseases by 50

per cent by 2010

• Reduce prevalence of blindness from around one per cent to 0.3 per cent by 2010

• Reduce Iodine Deficiency Disorder (IDD) by 50 per cent of the present level by 2010

• Increase awareness on HIV/AIDS

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State allopathic hospitals and dispensaries (2006 2007)

Family welfare services


(2006-2007)District level hospital 11

Base hospital 3

P.H.C./Additional P.H.C. 232

Women and child welfare centre 2

Main centre 84

Women and child welfare sub-centre 1,769

Community health centre 49

State allopathic hospitals 322

Joint/ women hospital 40

Tehsil/ district level post partam centre 24

Other hospitals

Homeopathic hospital/dispensary 97

Health post 9

Tuberculosis hospital/clinic 18

Leprosy 3

Beds in government hospitals 7,769

Ayurvedic hospital 513

Unani hospital 5


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Social infrastructure – education – 1/2• State acclaims some of the country’s best institutes of higher

learning which include:

• GB Pant University of Agriculture and Technology, Pantnagar

• Indian Institute of Technology, Roorkee

• Forest Research Institute, Dehradun

• GB Pant Institute of Himalayan Environment and Development, Almora

• Rural Biotechnology Complex in Kosi and Herbal Research and Development

Institute, Gopeswar

• With a current literacy rate of 72.28 per cent, the state strives to

achieve 95 per cent literacy rate, for which it has adopted a tri-

fold strategy with the following elements:

• 100 per cent enrolment

• 100 per cent retention

• Continuous education programme

• State plans to achieve 100 per cent computer literacy for

students by the end of the tenth five-year plan

• For this purpose the state has worked at improving the IT

www.ibef.orgSource: Uttarakhand State Government

infrastructure at all levels, beginning with educational institutes

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Social infrastructure – education – 2/2

Basic/ secondary education (2006-2007)Number of schools/ colleges 21 584Number of schools/ colleges 21,584

Number of students 2,307,622

Number of teachers 80,776

Higher educationNumber of institutions 108

Number of students 129,458

Number of teachers 1,562

Vocational and technical education

Industrial training institutes 104

Polytechnics 30

Distant institute of education and training 9

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• Well-developed communication network including both Communication infrastructure in Uttarakhand(2006-2007)

Physical infrastructure – telecom and IT

wired and wireless connectivity.

• Establishment of an Software Technology Park of India

earth station at Dehradun and proposed earth stations at

( )

Postal and communication services Number of units

Post offices 2,716

Number of telephone exchanges 454other locations has positioned Uttarakhand well with

respect to providing high speed connectivity.

• Information technology department has actively worked

i d l i t i f ti t h l k i th


p g

Telegraph offices 163

PCOs 14,338

Telephone connections (Including WLL) by BSNL 397,755

M bil h i b BSNL 492 972in developing two information technology parks in the

state in 2005-2006.

• The Uttarakhand State Wide Area Network (USWAN)

project proposed has been approved by the Government

Mobile phone connections by BSNL 492,972

project proposed has been approved by the Government

of India.

• By the end of 2006-2007, the state aims at having the

required Information Technology infrastructure for

Key highlights

Development of PKI/smart card infrastructure.

World’s first Microsoft IT Academy was established in Dehradun

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required Information Technology infrastructure for

USWAN and data centre in place.

World s first Microsoft IT Academy was established in Dehradun

Uttarakhand is among the leading states in computer education.

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Industrial infrastructureIndustrial infrastructure

• State has transformed an essentially agrarian state into a hub of industrial activity. During 2005-2006,

the state successfully developed the following:y p g

• Three Integrated Industrial Estates (IIEs) at Haridwar, Pantnagar and Sitarganj

• Pharma City at Salequi

• Information Technology Park at Sahastradhana (Dehradun)

• Growth centre at Siggadi (Kotdwar)

• In 2005-2006, Uttarakhand also saw the development of 20 private/joint/co-operative sector industrial

sectors in public private partnership mode

S f th th ff t d i thi di ti i l d• Some of the other efforts made in this direction include:

• Provision of broadband connectivity for all industries in the state

• Proposed strengthening of single window – contact, information and facilitation mechanism from

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p g g g ,

2006 to 2007

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I d t i l i f t tIndustrial infrastructure

N f th L ti T t l Fi i l i ti P d i d t i

Industrial estates-at a glance

Name of the estate

Location Total area Financial incentives Proposed industries

Integrated industrial estate - Haridwar

Three Km. from Delhi-Haridwar National

2,034 acres • 100 per cent central excise exemption for 10 years

• 100 per cent income tax exemption for first five years and

• Cosmetics and allied• Plastic and allied• Apparel and alliedNational

Highwayexemption for first five years and 30 per cent for next five years

• Central Sales Tax (CST) @ one per cent for five years

• Capital Investment Subsidy @15 per cent with a maximum of US$

• Agro food and allied• Pharma products• Electrical, electronics and

allied• Institutional, commercial

d lli dp $73,170 and allied

Integrated industrial estate - Pantnagar

NH-87 3,339 acres • 100 per cent central excise exemption for 10 years

• 100 per cent Income Tax exemption for first five years and

• Cosmetics and allied• Plastic and allied• Apparel and allied• Agro food and allied30 per cent for next five years

• CST @1 per cent for five years• Capital investment subsidy @15

per cent with a maximum of US$ 73,170

Agro food and allied• Pharma products• Electrical, electronics and

allied• Furniture hub• Institutional commercial

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Institutional, commercial and allied

Source: State infrastructure and industrial development corporation of Uttarakhand Ltd

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Industrial estates - at a glance

Name of the estate

Location Area Financial incentives Proposed industries

Integrated Industrial Estate, Sitarganj

15 Km. north of Sitarganj town

1,200 acres NA NA

Pharma City, Selaqui Industrial Area Dehradun

25 Km. from Dehradun

50 acres • 100 per cent central excise exemption for 10 years100 per cent income tax exemption for first

• Pharmaceutical formulation industry to be preferred

Area, Dehradun • 100 per cent income tax exemption for first five years and 30 per cent for next five years

• CST @ one per cent for five years• Capital investment subsidy @15 per cent

with a maximum of US$ 73,170

Sigaddi Growth Centre

120 Km. from Dehradun

100 acres • 100 per cent central excise exemption for 10 years

• 100 per cent income tax exemption for first five years and 30 per cent for next five Years

• CST @ one per cent for five years

• Thrust sector industries only

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@ p y• Capital investment subsidy @15 per cent

with a maximum of US$ 73,170

Source: State infrastructure and industrial development corporation of Uttarakhand Ltd.24



Industrial estates - at a glance

Name of the estate

Location Area Proposed facilities

State-of-the-Art

Sahastradhararoad

60 acres • Ready-to-occupy Hi-tech intelligent building. • Developed plots of varying sizes

Information Technology park

• Developed plots of varying sizes• Academic zone for educational and research organizations• STPI incubation centre to promote local entrepreneurs. • Large tracts of land have been devoted to green areas and

open spaces p p• Habitat centre to cater to business support and recreational

needs of the occupants • Other support facilities such as conference hall, training

centres, guest house, travel and forex service, banks and ATM’ lti i i f d t h lth l b ith di lATM’s, multi-cuisine food court, health club with gym, medical centre, serviced apartments, library and information bureau, indoor and outdoor sport facilities like squash, tennis, badminton courts, billiards etc

Source: State infrastructure and industrial development corporation of Uttarakhand Ltd.

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Source: State infrastructure and industrial development corporation of Uttarakhand Ltd.

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State Policies and Incentives

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St t l l li i

• Aim of the policy is to provide a

State level policies

The tourism policy of the state aims at:

New state industrial policy 2003 Tourism policy

comprehensive, investor friendly environment for rapid

and sustainable industrial development

• Thrust of the policy is on generating additional

employment opportunities and increasing the state

p y

• Placing Uttarakhand on the tourism map of the world

as one of the leading tourist destinations, and to make

the name synonymous with tourisme p oy e t oppo tu t es a d c eas g t e state

domestic product

• Policy aims at promoting public private partnerships in

development and management of infrastructure

projects such as:

• Developing the manifold tourism-related resources of

the state in an eco-friendly manner, with the active

participation of the private sector and the local host projects such as:

• Industrial estates and growth centres

• IIDCs, special economic and commodity zones

and parks

Th k t i

communities

• Developing tourism as a major source of employment

and income / revenue generation and as a pivot of the • Theme parks, tourism

infrastructure, development of new tourist

destinations, airports/helipads /airstrips, roads

and power projects

economic and social development within the state

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• New policy also focuses in promoting small

scale, cottage, khadi and village industries, handicrafts

and handloom sectors

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St t l l li iState level policies

Information technology policy

• Encourage the use of information technology in the government not only as a tool for management and decision

support systems but also to re-engineer the processes of the government to provide a more efficient, transparent,

accountable and responsive government to its citizens

• Upgrade the quality of life of citizens of the state by facilitating easy access to consumer applications of information

technology

• Encourage private sector initiatives for the development of world class information technology infrastructure adequate

for the needs of the citizens, the industry and the government

• Upgrade and develop manpower skills required for the information technology industry and to accelerate the use of

information technology in schools colleges and other educational institutions with a view to providing skills andinformation technology in schools, colleges and other educational institutions with a view to providing skills and

knowledge to the youth so as to render them fit for employment in this industry

• Use information technology as a GDP driver by promoting IT industry in the state, developing the state as an attractive

IT destination ith a ie to generate emplo ment for o th in this sector and raising their earning capacit and

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IT destination with a view to generate employment for youth in this sector and raising their earning capacity and

simultaneously realising the export as well as domestic revenue potential in this sector

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State level incentivesCategory Details of state level incentives for industries

Capital investment • 15 per cent central capital investment aid up to a maximum of US$ 73,170 for the establishment of new industrial units and for the purchase of equipment and machinery for significant improvement in existingsubsidy industrial units and for the purchase of equipment and machinery for significant improvement in existing units

Interest subsidy

• Three per cent annual relief on loans to new SSI units and SSI units expanding at least 25 per cent provided the loan is availed from state level financial institutions or banks operating in Uttarakhand and have not defaulted in principal or interest payments

• Five per cent waiver on annual interests on loans on SSI units and units notified as thrust industries being set p in remote areasset up in remote areas

Land subsidy • Stamp duty concessions to be provided in respect of land in specialised commodity parks, including IT parks

Registration of patents and other IPR

• 75 per cent of the cost (subject to a maximum of US$ 4,878) for registering patents shall be reimbursed

Power subsidy • No restriction in the state in using power during the peak hours

• A 100 per cent relief in the state excise duty for a period of 10 years• A 100 per cent relief in income tax for the first five years, and thereafter a 30 per cent relief to companies

and 25 per cent relief for others• CST @ one per cent for five years• Exemption from entry tax on plan and machinery for setting up industry for undertaking substantial

Others concessions

• Exemption from entry tax on plan and machinery for setting up industry for undertaking substantial expansion and modernization

• 100 per cent exemption on entertainment tax for multiplex projects for a period of three years • 100 per cent exemption on entertainment tax on amusement parks and ropeways for a period of five years• 75 per cent of the total expenditure incurred in obtained national/international quality marks to be

reimbursed• 50 per cent of the cost incurred in installing pollution control equipments to be reimbursed

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p g p q p• Matching state subsidy on approved projects of National Horticulture Board (NHB), Agricultural and

Processed Food Products Export Development Authority (APEDA), National Medicinal Plant Board (NMPB)

Source: Government of Uttarakhand29


Th t i d t iThrust industries

• Floriculture • Sports goods and articles

Thrust industries

• Equipment for general physical exercise• Equipment for adventure sports/activities, tourism (to be

separately specified)

• Processing of medicinal and aromatic herbs • Paper and paper products excluding those in negative list (as per excise classification)

• Honey • Pharma products

• Horticulture and agro based industries such as • Sauces, ketchup, etc. • Fruit juices and fruit pulp • Jams, jellies, vegetable juices, puree, pickles etc.

• Information and communication technology industry • Computer hardware• Business process outsourcing

• Preserved fruits and vegetables • Processing of fresh fruits and vegetables including

packaging • Processing, preservation, packaging of mushrooms

• Food processing industry excluding those included in the ti li t

• Bottling of mineral water negative list

• Sugar and its by-products • Eco-tourism • Hotels, resorts, spa, entertainment/amusement parks and

ropeways

• Silk and silk products • Industrial gases (based on atmospheric fraction)

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• Wool and wool products • Handicrafts

• Woven fabrics (excisable garments) • Non-timber forest product based industriesSource: Uttara Portal

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Business Opportunities

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Att ti tAttractive sectors

• Tourism is an important sector for the state’s economy

Sector specific incentivesTourism

Tourism is an important sector for the state s economy

• Uttarakhand is already a well-renowned religious

tourism destination

• In 2005, the state registered a growth of about 18 per

Category Benefit Period (years)

New tourism units

Rebate/deferment facility in respect of luxury tax from the date

f t5, g g p

cent in domestic and 24 per cent in international tourist

arrivals over the previous year

• Investment opportunities that exist in the tourism sector

units of commencement

New ropeways Exemption from payment of entertainment tax from the date of commencement

5

N E ti f t t i t tinclude:

• Development of facilities for providing spiritual

lessons, reiki, and other rejuvenating courses.

New amusement parks

Exemption from entertainment tax from the date of becoming fully operational

5

• Eco – tourism hotels, spa, resorts, amusement

parks and ropeways.

• Winter sports at places such as Auly, which have

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the requisite terrain for the purpose.

• Adventure tourism

32


Att ti t

Agro and food processing Floriculture and horticulture Biotechnology

Attractive sectors

• Demand in domestic and

international market has shifted

the government's focus to

floriculture and horticulture

• High bio-diversity makes the state

an attractive destination for agro

and food processing industries

State offers immense

• Rare species of plants and

animals found in the state, add to

its natural advantage in this sector

Government plans to developfloriculture and horticulture

• Geographical location makes the

state particularly conducive for

commercial horticulture and

• State offers immense

opportunities for establishing agro

and food parks

• Higher incentives being offered by

• Government plans to develop

Uttarakhand as a centre for

excellence in biotechnology

• Government proposes to grantcommercial horticulture and

floriculture

• Immense opportunities for

floriculture and horticulture parks

Higher incentives being offered by

MFPI for setting up units in

Uttarakhand

• State government is also

Government proposes to grant

industry status to units coming up

in the sector; provisions made for

the IT sector shall be applicable to p

in the state

g

providing various subsidies for

projects under APEDA, NHB,

MFPI and NMPB

pp

this sector as well

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Attractive sectors

IT and communication Hydropower Forest products

Attractive sectors

• IT and ITeS have been accorded

the industry status

• Uttarakhand offers high-speed

• Untapped potential for generating

hydropower

• State aims to position itself as the

• Excellent potential for the

development of forest resources-

based industries

• IT and ITeS have been accorded

the industry status

• Uttarakhand offers high-speed

• Untapped potential for generating

hydropower

• State aims to position itself as the

connectivity via an STPI earth

station at Dehradun

• Emerging as an ideal IT

d ti ti ith IT P k i

most competitive supplier to the

Northern Grid

• State has a potential to generate

l 15 000 MW f h d

• Ample scope to develop industries

based on forest and agro wastes

such as lantana, pine needles,

l t d t ti fib

connectivity via an STPI earth

station at Dehradun

• Emerging as an ideal IT

most competitive supplier to the

Northern Grid

• State has a potential to generate

destination with an IT Park in

Dehradun, an IT-BT Park in

Pantnagar, and several other up-

coming projects which offer

nearly 15,000 MW of hydropower

and 47 locations have already

been identified of private sector

plant and vegetative fibers

• State also offers immense

opportunities for medicinal,

aromatic plants and herbal export-

destination with an IT Park in

Dehradun, an IT-BT Park in

Pantnagar, and several other up-

i j t hi h ff

nearly 15,000 MW of hydropower

and 47 locations have already

been identified of private sector

coming projects which offer

immense opportunities in the

sector

aromatic plants and herbal export-

oriented unitscoming projects which offer

immense opportunities in the

sector

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Emerging opportunities

SericultureTh h h f i jThe sector has the prospect of emerging as a majorone , in the years to come. Muga cocoon producedin the state is comparable to the best qualityavailable in India.

TeaUttarakhand has emerged as the only state outsideth t diti l t i t d th d

FisheriesWith Uttarakhand’s large water resources, thepossibility of developing fisheries is immense. The

Oth tt ti the traditional tea growing areas to produce orthodoxtea. It is also proposed to bring in additional acreageunder tea plantation over the next few years.

Fisheries Policy 2002 is devised aiming at integrateddevelopment of fisheries and use of scientifictechniques for the same.

Other attractive sectors

Bamboo and fiber developmentState government has established a bamboo and

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State go e e t as estab s ed a ba boo a dfibre development board to develop this sector

35


Investments in Uttarakhand

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Industrial investment inflow

Proposed ProposedPeriod Total

proposals

Proposed investment (US$

million)

Proposed employment (numbers)

IEM* + LOI IEM + LOI % Share IEM + LOI % Share

Mar-01 292 1,503 0.5 52,888 0.70

Mar-02 314 1,634 0.55 56,187 0.65

Mar-03 348 1,764 0.56 61,419 0.68

Mar-04** 490 2,087 0.59 76,422 0.69

Nov-04 596 2,561 0.65 90,188 0.77

Dec-05 950 14,989 0.79 152,170 1.27

**Investment Proposals since March 2004 also include DILs

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Share of Uttarakhand in total industrial investment proposals

1.431.431.41.4

1.61.6

0.640.640.640.64 0.870.87

1.01.0

0 60 6

0.80.8

11

1.21.2

er c

ent

er c

ent

0.670.67

00

0.20.2

0.40.4

0.60.6PePe

00

Mar 01Mar 01 Mar 02Mar 02 Mar 03Mar 03 Mar 04Mar 04 Nov 04Nov 04 Dec 05Dec 05

Source: Department of Industrial Policy and Promotion, Ministry of Commerce and Industry

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Year-wise distribution of IEMS filed in Uttarakhand till December 31, 2005,

Year Numbers Proposed investment (US$ million)

Aug 1991 to Dec 2000 265 1,173.72g ,

2001 21 128.60

2002 19 73.02

2003 110 220 002003 110 220.00

2004 116 619.30

2005 343 1,211.39

Source: Department of Industrial Policy and Promotion, Ministry of Commerce and Industry

*IEM: Industrial Entrepreneurs’ Memorandum

LOI: Letter of Intent

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Upcoming investments

Footwear2%

FMCG 2%

Processed foods3%

Information technology

2%

Automotive

Pharmaceuticals8%

Automotive83%

Expected Investment

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Sector Expected Major investors

Key Investors

Sector investment Major investors

Automotive US$ 1767.44 million

Tata Motors, Hero Honda, Ashok Leyland, M&M, Bajaj Auto.

Pharmaceuticals

US$ 174.42 million

Ranbaxy, Natco, Pegasus, Chris Pharma, Intas Labs, Martin and Harris Lab

P d US$ 60 77 P l B it i N tl D b R jProcessed foods

US$ 60.77 million

Parle, Britannia, Nestle, Dabur, Raja Biscuits

Footwear US$ 46.51 million Action, Lakhani, and Liberty

FMCG US$ 34.88 million

Hindustan Lever Ltd, CavinKare, Cosmos, Lotus, and Herbal Concept

Information US$ 34 88 Hewlett Packard (HP) and HCL

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Information technology

US$ 34.88 million

Hewlett-Packard (HP) and HCL Infosystems

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Key investorsName of company Location Products Project cost in

US$ million

ITC Ltd. IIE, Haridwar Food and personal care products 29.12

Britannia Industries Ltd. IIE, Pantnagar Biscuits and other food products 13.34

Dabur India Ltd. IIE, Pantnagar Health care, personal care, ayurvedic cosmetics 11.44

Cavinkare Pvt. Ltd. IIE, Haridwar Cosmetic, shampoos/creams, deodorants 6.05

Twenty First Century Printers Ltd IIE, Haridwar Printed packaging material, cartons,

boxes, shells and labels 5.83

Somany Foam Ltd. IIE, Haridwar Polyurethane foam mattress, FT foam sheets 5.99

Polar industries Ltd. IIE, Haridwar Electrical fans, water lifting pumps, geysers, water purifiers and laminations 4.99

Havell's India Ltd. IIE, Haridwar Electrical products 3.96

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VIP Industries Ltd. IIE, Haridwar Plastic molded luggage 3.95

Lakhani India Ltd. IIE, Haridwar Footwear and parts 3.70

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K i tKey investors

• ITC• One of India's foremost private sector companies with a market capitalization of nearly US$ 15 billion and a

turnover of over US$ 4.75 billion.

• Established manufacturing facility in Uttarakhand for producing soaps and shampoos.

• Hiltron• Independent corporation that initially worked to promote development of electronics and allied industries and

services in Uttarakhand.

• Currently functioning as an IT and communication service provider to the state, under the administrative y g p ,

control of department of IT.

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K i tKey investors

• TATA Motors • Tata Motors, one of the leading firms in the country in the automobile sector has set up its fourth plant in

Uttarakhand.

• This plant in Pantnagar has been set-up for manufacturing the firm’s mini truck named Ace.

.

• Hero Honda • One of the leading brands in India for two wheelers,

• Established a new manufacturing plant in Haridwar,

• Plant is intended to have a capacity of 500,000 units.

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K i tKey investors

• Ashok Leyland• Started work for a state-of-the-art, integrated manufacturing plant near Pantnagar in Uttarakhand

• Planning to invest US$ 232.56 million to create assembly and cab facilities for 25,000 vehicles annually, in the

first phase

• Scheduled to go on stream in 2008-2009. Phase II is expected to be operational by 2010

• Mahindra & Mahindra • Mahindra and Mahindra Limited (M&M) is a major automaker in India.

• The new plant of the company in Uttarakhand is the company’s fifth full-scale automotive plant and has been

set up primarily for the manufacture of three-wheelers of different load capacities and range.

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K i tKey investors

• Hindustan Lever • HLL is India's largest fast moving consumer goods company in India

• Hindustan Lever Limited's (HLL) state-of-the-art personal care factory, setup with an initial investment of US$

30.23 million in SIDCUL’s IIE in Haridwar

• HCL Infosystem• One of the largest vertically integrated IT manufacturing company of India,

• Launched its manufacturing facility at Rudrapur, Uttarakhand in the SIDCUL Industrial Estate,

• Overall capacity of produce up to two million personal computers per annum.

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K i tKey investors

• Nestle India Ltd.• Nestle is the world's largest and most diversified food company

• Around 2,50,000 employees worldwide, 500 factories in approximately 100 countries and offering over 8,000

products universally

• Nestlé India has commissioned in 2006, its seventh factory at Pant Nagar in Uttarakhand

• Britannia • Britannia is one of India’s food products company, with an estimated 38 per cent market share

• Company's principal activity is the manufacture and sale of biscuits, bread, cakes and dairy products like

cheese, butter and milk

• Established a plant in the integrated industrial estate at Pantnagar.

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Doing Business

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Key approvals requiredKey approvals requiredList of approvals and clearances required Departments to be consultedPrior to setting up the unit

Registration Industries department

Allotment of land/ shedUttarakhand Industrial Development Department Ltd./ Uttar Pradesh State Industrial Development Department Ltd./ Industry Division, Uttarakhand

P l d l f t ti l d Utt kh d t t l t i it d t tPower load approval for construction load Uttarakhand state electricity department

Approval for construction of building activity under factories act Labor department

No objection certificate Fire department

Provisional trade tax registrations Central and state excise departments

Registration under central sales tax act Central and state excise departments

Before commencement of production

Environmental clearances Uttarakhand Environment Protection and Pollution Control Board

No objection certificate Fire department

Trade tax department

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Permanent trade tax registrationTrade tax department

Registration under central sales tax act 1956 Central and state excise departments

49


Cost of doing business

Sr. No. Sector Cost

1 Manufacturing

A Land price (US$/Sq. mt.)* 22 – 37

B Labor (US$/man year) 552 – 846( $ y )

2 Industrial electricity (US cents/unit)

A Normal hours 4.6

B P k h 5 8B Peak hours 5.8

C Non-peak hours 4.4

3 Prime lending rate (per cent) 12.75 - 13.25

4 Hotel stay (US$/night)

A Two Star 37 – 49

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B Three Star 49 – 73

50


Business climateBusiness climateAbundance of natural resources• Abundance of natural resources

• Presence of many water bodies make it

Location advantage• Proximity to NCR, makes it one of the

nation’s leading marketPresence of many water bodies make it

ideal for hydro power generation

• Abundant irrigation, favourable

geographical and climatic conditions make

it ideal for agro based industries

nation s leading market

• Also, the state has excellent connectivity

to all its neighboring states

Expanding industrial infrastructure:The state has it ideal for agro-based industries

Favorable policies and incentives

High literacy rates• State’s literacy average is above the

national level

witnesses

considerable

overall

development as a• Large benefits offered by state in terms of

tax exemptions, reimbursements on loans,

interest incentives, financial assistance,

subsidies and concessions

• Rich pool of talented human resources as

Uttarakhand is home to some of the

leading educational institutions in the

country

development as a

result of the

policies of the state

government.

Proactive government• Government is well-known for its efficiency which

is very well reflected in the policies brought out by

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y p g y

the state, which address current issues in the

administration

51


Overall State Competitiveness

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Ad t Utt kh dAdvantage Uttarakhand

• Proactive state government and efficient administrative system

• Wide range of fiscal and non-fiscal incentives

E ll t ti it i t ll d t th N ti l C it l R i (‘NCR’) d ti l d l t

• Proactive state government and efficient administrative system

• Wide range of fiscal and non-fiscal incentives

E ll t ti it i t ll d t th N ti l C it l R i (‘NCR’) d ti l d l t• Excellent connectivity internally and to the National Capital Region (‘NCR’) and continual development

of good transportation infrastructure

• Widespread opportunities in sectors like floriculture and horticulture

• Excellent connectivity internally and to the National Capital Region (‘NCR’) and continual development

of good transportation infrastructure

• Widespread opportunities in sectors like floriculture and horticulture

• Presence of rare medicinal herbs, with over 175 species found in the state is an added advantage for

the success of agro-based industries

• Rich mineral deposits of limestone, soapstone and magnesite among other minerals provide for

• Presence of rare medicinal herbs, with over 175 species found in the state is an added advantage for

the success of agro-based industries

• Rich mineral deposits of limestone, soapstone and magnesite among other minerals provide for

opportunities in the mining sectoropportunities in the mining sector

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Ad t Utt kh dAdvantage Uttarakhand

• Quality education infrastructure coupled with presence of premier institutes like Indian Institute of

Technology (IIT) in the district of Roorkee

H t ti l f h d ti lt f t t• Huge potential for hydropower generation as a result of vast water resources

• Unequalled potential for leisure, adventure and religious tourism

• Serene and secure industrial environment

• Established industrial estates like Pantnagar, Dehradun, Haridwar, Selaqui and Sitarganj with all

necessary infrastructure facilities

• Presence of key industrial players like Tata Motors, Mahindra and Mahindra, Ashok Leyland, Hero

Honda, Hindustan Lever, and HCL Info. Systems

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Overall state competitivenessOverall state competitiveness

Parameter Uttarakhand

Opportunities in type of industry

Tourism

IT-based industries

Tea based industries

Food processing industryFood processing industry

Pharmaceuticals and biotech

Agro based industry

Forest based industry

Mineral based industry

Engineering industry

Chemicals industry

Handloom and handicrafts sectorHandloom and handicrafts sector

Policy incentives

Setting up and carrying out business

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High Medium Low

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Overall state competitiveness

Parameter Uttarakhand

Industrial infrastructure-existing and proposed

PPower

Transportation

Industrial estates/areas

STP

EPIP

EPZEPZ

High Medium Low

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DISCLAIMER

This presentation has been prepared jointly by the India Brand Equity Foundation (‘IBEF’) and Ernst & YoungPvt. Ltd. (‘Authors’).

All rights reserved. All copyright in this presentation and related works is owned by IBEF and the Authors. Thesame may not be reproduced, wholly or in part in any material form (including photocopying or storing it in anymedium by electronic means and whether or not transiently or incidentally to some other use of thispresentation), modified or in any manner communicated to any third party except with the written approval ofIBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of thispresentation to ensure that the information is accurate to the best of the Author’s and IBEF’s knowledge andbelief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.

The Author and IBEF neither recommend or endorse any specific products or services that may have beenThe Author and IBEF neither recommend or endorse any specific products or services that may have beenmentioned in this presentation and nor do they assume any liability or responsibility for the outcome ofdecisions taken as a result of any reliance placed in this presentation.

Neither the Author nor IBEF shall be liable for any direct or indirect damages that may arise due to any act oromission on the part of the user due to any reliance placed or guidance taken from any portion of thispresentation.

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