Uttarakhand 13mar 2008

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U T TA R A K H A N DOctober 2007

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STATE ECONOMY & SOCIO-ECONOMIC PROFILE

STATE ECONOMY & SOCIO-ECONOMY PROFILEUTTARAKHAND • October 2007

Uttarakhand – A Snapshot

• State of Uttarakhand was formed on 9th of November, 2000 as the 27th state of India

• Formed by carving out the 14 hilly districts of the State of Uttar Pradesh

• Strategically located and forms part of the Northern boundary of the country sharing borders with Nepal and Tibet (China); touches Tibet in the North, Himachal Pradesh in the West and Northwest, gangetic plains of Uttar Pradesh in the south and Nepal in the East

• Uttarakhand has diverse geographical features ranging from snow-capped mountain peaks in the north to the tropical forests in the south; equally diverse is its climate and vegetation

Uttarakhand – A Snapshot

• One of the five states in India to be declared as UNESCO’s World Heritage Biodiversity sites

• Occupies an area of 53,483 sq km and has a population of 8.5 million

• Administrative and legislative capital is Dehradun


Socio – Economic Snapshot

Capital Dehradun

Area 53,483 sq km

Population (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%

Major Minerals Limestone, soapstone and magnesite

Major Industries Hydropower, floriculture, horticulture, agro-based and food processing industries, information and communication technology, biotechnology

Major Crops Rice, Wheat, Barley, Corn, Mandua, Hangora

GSDP at current prices in 2004-05

US$ 5,365.6 million


Socio – Economic Snapshot

NSDP at current prices in 2004-05

US$ 5,060.2 million

Annual Per Capita Income at current prices in 2004-05

US$ 595.26

Domestic Airports Jolly Grant, Pant Nagar

Source: Uttarakhand State official websiteSource: Official website of Ministry of External Affairs, GOI www.indiainbusiness.nic.inSource: Indiastat


Economic Profile

• Gross State Domestic product (GSDP) at current prices in 2004-2005 (as of Feb 2006) was US$ 5,365.6 million

• Net State Domestic Product (NSDP) of the state at Current Prices (2004-05) was US$ 5,060.2 million

• The service sector contributes to more than half of the state’s GDP at 51%, followed by the agricultural and mining sector at 24% and the manufacturing sector at 25% in 2004-05

GSDP (in million US$)

Source: Uttarakhand State Government

2004-05

2000-01

1996-97

1993-94

1000 2000 3000 4000 5000 60000

5365.56

2845.81

1916.66

1332.22


Economic Profile

• State is essentially driven by the tertiary sector; tourism is one of the key sectors with a major contribution to the state’s economy

• 24% of the GSDP contributed by the primary sector which includes agriculture, cultivation, mining activities etc.

Sector Contribution to GSDP (2004-05)


n Teritiary Sector n Primary Sector n Secondary Sector

25%

24%

51%


Socio-Economic Profile

• Per capita income grew at a CAGR of 5.2% per annum between 1993-94 and 2004-05

• In 2004-05, the per capita income of the state stood at US$ 595

• State’s literacy rate has increased considerably from 57.75% in 1991 to 71.60% in 2001; higher than India’s average literacy rate of 65.38%

• Work Participation Rate (WPR) is 36.93% for Uttarakhand and 39.30% for India as per 2001 Census

Per Capita (In US$)


2004-05

2000-01

1996-97

1993-94

100 200 300 400 500 600 700

595

338

245

178

0


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INFRASTRUCTURE STATUS

Physical Infrastructure

INFRASTRUCTURE STATUSUTTARAKHAND • October 2007

Railways

• Deployed 345 kms of rail routes by 2005-06

• As on 31 March 2005, density of rail routes is 6.45 route km for every thousand sq 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 Dehradun, Haridwar and Rishikesh and their inter-city linkage routes


Airways

• 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

Flight Connectivity Only from Delhi

No. of Airports 2



Roads

• Total length of road in the state in 2005-06 was 27,509.58 km.

• 9,419 villages out of a total of 15,656 connected as on March, 2005

• Public Works Department of the state has planned several Build–Operate–Transfer projects under Public Private Partnerships

• US$ 88.75 million was spent on road transport in 2005-06, 40% higher than the previous year’s expenditure

Total Road Network 27,509.58 Km

National Highways 1,327.60 Km

State Highways 1,542.78 Km



Transport Network in Uttarakhand


Physical Infrastructure – Power & Urban

Urban Infrastructure

• Urban infrastructure development became a priority sector for the state government since 2005-06 with an allocation of US$ 20.33 million for its activities which was further increased to US$ 58.84 million for the year 2006-07

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

Input 2001 2006 Growth/ Achievement

Villages Electrified (Nos.) 12563 14377 1814

Hamlets Electrified (Nos.) 703 3368 2665

BPL Connections (Nos.) - 82243 82243

PTW Connections (Nos.) 16667 19107 2440

Consumers (Nos.) 816949 10653 248407

Rural Electrification % (incl. UREDA )

79 95.48 95.48

AT&C Losses % 45.07 45.07 45.07

Annual Per Capita Consumption (KWh)

413 654 241

Human Capital Workforce (Nos.) 5807 4998 4998



Physical Infrastructure – Power & Urban

Power

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

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

• State has simultaneously supported alternate sources of power generation; solar water heaters with heating capacity of 97,500 litres per day, 7 biogas-bracketing plants, 12 solar plants and a state-level energy park in Dehradun

Input 2001 2006 Growth/ Achievement

Villages Electrified (Nos.) 12563 14377 1814

Hamlets Electrified (Nos.) 703 3368 2665

BPL Connections (Nos.) - 82243 82243

PTW Connections (Nos.) 16667 19107 2440

Consumers (Nos.) 816949 10653 248407

Rural Electrification % (incl. UREDA )

79 95.48 95.48

AT&C Losses % 45.07 45.07 45.07

Annual Per Capita Consumption (KWh)

413 654 241

Human Capital Workforce (Nos.) 5807 4998 4998




• 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 2005-06, US$ 76.28 million spent on improvement of water supply systems; government proposes to spend US$ 86.05 million on further improving the water supply in the state during 2006-07

Inhabited Revenue Villages Covered 15,547

Population Covered 6.142 million

Scarcity Villages 4

Scarcity Hamlet

(i) Not Covered (N.C.) 4,362

(ii) Partially Covered (P.C.) 13,622

Drinking Water Supply Details in Uttarakhand (2005-06)




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

• Worked at developing the waste-disposal system under “Total Sanitation” campaign

• Partial sewer arrangements have been provided in one-third of the towns in the state.

Development under Total Sanitation for Village in Uttrakhand


n 2000-01 n 2005-06

5,0000 35,00025,00020,00015,00010,000 30,000

Individual Toilets Constructed

Compost Pits Constructed

Soakpits

Garbage Pits

31,54910,316

7,590

4,506

5,330

2,834

5,823

5,067


Social Infrastructure - Health

State has a good network of hospitals and health centres; created the health and population policy to improve the quality of life of its people by focusing on developing an effective health infrastructure

Following are some of the objectives laid down by the state in its health and population policy:

• Eradicate polio by 2007;

• Reduce the level of leprosy to below 1 per 10,000 population by December 2007;

District Level Hospital 14

Base Hospital 3

P.H.C./Additional P.H.C. 224

Community Health Centre 49

State Allopathic Hospitals 322

Joint/ Women Hospital 40

Tehsil/ Dist. Level Post partam Centre

24

Health Post 9

Tuberculosis Hospital/Clinic 18

Leprosy 3

Beds in Govt. Hospitals 7,676

State Allopathic Hospitals and Dispensary



Social Infrastructure - Health

• Reduce mortality on account of tuberculosis, malaria, other vector and water-borne diseases by 50% by 2010;

• Reduce prevalence of blindness from around 1 to 0.3% by 2010;

• Reduce Iodine Deficiency Disorder (IDD) by 50% of the present level by 2010;

• Increase awareness on HIV/AIDS

Women and Child Welfare Centres 2

Main Centres 84

Women and Child Welfare Sub-Centres

1,631

Family Welfare Services


Homeopathic Hospital/Dispensary 97

Ayurvedic Hospitals 495

Unani Hospitals 3

Other Hospitals


Social Infrastructure - Education

State has to its credit some of the country’s best institutes of higher learning like:

• GB Pant University of Agriculture and Technology in Pantnagar;

• Indian Institute of Technology in Roorkee

• Forest Research Institute in Dehradun

• GB Pant Institute of Himalayan Environment and Development in Almora

• Rural Biotechnology Complex in Kosi and Herbal Research and Development Institute, Gopeswar

Numbers of Schools/ Colleges 20,875

Number of Students 2,142,888

Numbers of Teachers 80,154

Basic/ Secondary Education


Number of Institutions 98

Number of Students 119,846

Number of Teachers 1,581

Higher Education


Social Infrastructure - Education

• With a current literacy rate of 71.6%, the state strives to achieve 95% literacy rate, for which it has adopted a three-fold strategy with the following elements:

* 100% enrolment

* 100% retention

* Continuous Education Programme

• State plans to achieve 100% computer literacy for students by the end of the 10th five-year plan

• For this purpose the state has worked at improving the IT infrastructure at all levels beginning with educational institutions

Industrial Training Institutes 104

Polytechnics 30

Distant Institute of Education and Training

9

Vocational and Technical Education



Physical Infrastructure – Telecom & IT

• Well-developed communication network including both wired and wireless connectivity

• Establishment of a Software Technology Park of India Earth Station at Dehradun and proposed Earth stations at other locations has positioned Uttarakhand well with respect to providing high speed connectivity.

• Information Technology Department has actively worked in developing two information technology parks in the state in 2005-06.

Postal and Communication Services Number of units

Post Offices 2,719

Number of Telephone Exchanges 453

Telegraph Offices 163

PCOs 14,577

Telephone Connections (Including WLL) by BSNL

404,163

Mobile phone connections by BSNL 283,941

Communication Infrastructure in Uttarakhand (2005-06)



Physical Infrastructure – Telecom & IT

• The Uttarakhand State Wide Area Network (USWAN) project proposed has been approved by the Government of India.

• By the end of 2006-07, the state aims at having the required Information Technology infrastructure for USWAN and Data Centre in place.

• Development of PKI/Smart Card Infrastructure

• World’s first Microsoft IT Academy was established in Dehradun

• Uttarakhand is among the leading states in computer education

Key Highlights


Industrial Infrastructure

• State has transformed an essentially agrarian state into a hub of industrial activity. During 2005-06, the state successfully developed the following:

* 3 Integrated Industrial Estates (IIEs) at Haridwar,

* Pantnagar and Sitarganj

* Pharma City at Salequi

* Information Technology Park at Sahastradhana (Dehradun)

* Growth Center at Siggadi (Kotdwar)



• In 2005-06, Uttarakhand also saw the development of 20 Private/Joint/Co-operative sector industrial sectors in Public-Private Partnership mode

• 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 during 2006-07



Name of the Estate Location Location Financial Incentives Proposed Industries

Integrated Industrial Estate - Haridwar

3 kms from Delhi-Haridwar National Highway

2,034 acres • 100% Central Excise exemption for 10 years

• 100% Income Tax exemption for first 5 years and 30% for next 5 years

• Central Sales Tax @1% for 5 years

• Capital Investment Subsidy @15% with a maximum of US$ 73,170

• Cosmetics and allied

• Plastic and allied

• Apparel and allied

• Agro food and allied

• Pharma products

• Electrical, electronics and allied

• Institutional, commercial and allied

Integrated Industrial Estate - Pantnagar

National Highway number NH-87 3,339 acres • 100% Central Excise exemption for 10 years

• 100% Income Tax exemption for first 5 years and 30% for next 5 years

• CST @1% for 5 years


• Cosmetics and allied

• Plastic and allied

• Apparel and allied

• Agro Food and allied

• Pharma products

• Electrical, Electronics and allied

• Furniture hub

• Institutional, commercial and allied

Industrial estates at a glance



Name of the Estate Location Location 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% Central Excise exemption for 10 years

• 100% Income Tax exemption for first 5 years and 30 % for next 5 years



• Pharmaceutical formulation industry to be preferred

Sigaddi Growth Centre 120 Km from Dehradun 100 acres • 100% Central Excise exemption for 10 years

• 100% Income Tax exemption for first 5 years and 30 % for next 5 Years



• Thrust sector industries only




Name of the Estate Location Location Proposed Facilities

State-of-the-Art Information Technology Park

Sahastradhara road 60 acres • Ready-to-occupy hi-tech intelligent building

• Developed plots of varying sizes

• Academic zone for educational and research organisations

• STPI Incubation center to promote local entrepreneurs

• Large tracts of land have been devoted to green areas and open spaces

• 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 ATMs, 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 & industrial development corporation of Uttarakhand Ltd


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STATE POLICIES & INCENTIVES

State Level Policies

STATE POLICIES & INCENTIVESUTTARAKHAND • October 2007

New State Industrial Policy 2003

• Aim of the policy is to provide a comprehensive, investor-friendly environment for rapid and sustainable industrial development

• Thrust of the policy is on generating additional employment opportunities and increasing the State Domestic Product


New State Industrial Policy 2003

• Policy aims at promoting Public Private Partnerships in development and management of infrastructure projects such as:

* Industrial Estates and Growth Centers

* IIDCs, Special Economic and Commodity Zones and Parks

* Theme parks, tourism infrastructure, development of new tourist destinations, airports/helipads /airstrips, roads and power projects

• New policy also focuses on promoting small scale, cottage, khadi and village industries, handicrafts and handloom sectors



Tourism Policy

The tourism policy of the state aims at:

• Placing Uttarakhand on the tourism map of the world as one of the leading tourist destinations, and to make Uttarakhand synonymous with tourism

• 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 communities

• Developing tourism as a major source of employment and income/revenue generation and as a pivot of the economic and social development in the state



Information Technoloy 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 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 with a view to generate employment for youth in this sector and raising their earning capacity and simultaneously realizing the export as well as domestic revenue potential in this sector


State Level Incentives

Category Details of State level incentives for industries

Capital Investment Subsidy • 15% 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 existing units.

Interest Subsidy • 3% annual relief on loans to new SSI units and SSI units expanding at least 25% provided the loan is availed from state level financial institutions or banks operating in Uttarakhand and have not defaulted in principal or interest payments.

• 5% waiver on annual interests on loans on SSI units and units notified as thrust industries being set up in remote areas.

Land Subsidy • Stamp duty concessions to be provided in respect of land in specialized commodity parks, including IT parks.

Registration of patents and other IPR

• 75% 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

Others Concessions • A 100% relief in the State Excise Duty for a period of ten years

• A 100% relief in Income Tax for the first five years, and thereafter a 30% relief to companies and 25% relief for others

• CST @ 1% for 5 years

• Exemption from entry tax on plant and machinery for setting up industry, undertaking substantial expansion and modernisation

• 100% exemption on entertainment tax for Multiplex projects for a period of 3 years

• 100% exemption on entertainment tax on Amusement parks and Ropeways for a period of 5 years

• 75% of the total expenditure incurred in obtaining national/international quality marks to be reimbursed

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

• 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 Uttarakhand


Thrust Industries

Thrust Industries

• Floriculture • Sports goods and articles

• 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.

• Preserved fruits and vegetables

• Processing of fresh fruits and vegetables including packaging

• Processing, preservation, packaging of mushrooms

• Information and communication technology industry

• Computer hardware

• Business process outsourcing

• Food processing industry excluding those included in the negative list • Bottling of mineral water

• 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)

• Wool and woolen products • Handicrafts

• Woven fabrics (Excisable garments) • Non-timber forest product based industries

Source: Uttara Portal


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BUSINESS OPPORTUNITIES

Attractive Sectors

BUSINESS OPPORTUNITIESUTTARAKHAND • October 2007

Tourism

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

• Uttarakhand is already a well-renowned pilgrim destination

• During 2005, the state registered a growth of about 18% in domestic and 24% in international tourist arrivals over the previous year

Category Benefit Period (years)

New tourism units

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

5

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

5

New amusement parks

Exemption from entertainment tax from the date of becoming fully operational

5

Sector Specific Incentives

Attractive Sectors

Tourism

• Investment opportunities that exist in the tourism sector include:

* Development of facilities for providing Spiritual lessons, Reiki, and other rejuvenating courses

* Eco-tourism hotels, Spa, Resorts, Amusement parks and Ropeways

* Winter sports at places such as Auly, which have the requisite terrain for the purpose

* Adventure tourism


Attractive Sectors

Agro and Food Processing

• High bio-diversity makes the state an attractive destination for Agro and Food Processing Industries

• State offers immense opportunities for establishing agro and food parks

• Higher incentives being offered by MFPI for setting up units in Uttarakhand

• State government is also providing various subsidies for projects under APEDA, NHB, MFPI and NMPB


Attractive Sectors

Floriculture and Horticulture

• Demand in domestic and international market has shifted the Government’s focus to floriculture and horticulture

• Geographical location makes the state particularly conducive to commercial horticulture and floriculture

• Immense opportunities for floriculture and horticulture parks in the state


Attractive Sectors

Biotechnology

• Rare species of plants and animals found in the state add to its natural advantage in this sector

• Government plans to develop Uttarakhand as a centre of excellence in biotechnology

• Government proposes to grant industry status to units coming up in the sector; provisions made for the IT sector shall be applicable to this sector as well


Attractive Sectors

IT and Communication

• IT and ITeS have been accorded industry status

• Uttarakhand offers high-speed connectivity via an STPI earth station at Dehradun

• Emerging as an ideal IT destination with an IT Park in Dehradun, an IT-BT Park in Pantnagar, and several other up-coming projects thereby offering immense opportunities in the sector

Hydro power

• Untapped potential for generating hydropower

• State aims to position itself as the most competitive supplier to the Northern Grid

• State has a potential to generate nearly 15,000 MW of hydropower and 47 locations have already been identified for private sector


Attractive Sectors

Forest Products

• Excellent potential for the development of forest resources-based industries

• Ample scope to develop industries based on forest and agro wastes such as lantana, pine needles and plant and vegetative fibers

• State also offers immense opportunities for medicinal, aromatic plant and herbal export oriented units


Emerging Opportunities

Other Attractive Sectors

Sericulture

Sector has the prospect of emerging as a major sector in the years to come. Muga cocoon produced in the state is comparable to the best quality available in India

Fisheries

With Uttarakhand’s large water resources, the possibility of developing fisheries is immense. The Fisheries Policy declared in 2002 is devised aiming at integrated development of fisheries and use of scientific techniques


Emerging Opportunities

Other Attractive Sectors

Tea

Uttarakhand has emerged as the only state outside the traditional tea growing areas to produce Organic Orthodox Tea. It is also proposed to bring in additional acreage under tea plantation over the next few years.

Bamboo and Fibre Developments

State Government has established a Bamboo and Fibre Development Board to develop this sector.


Investments in Uttarakhand

Period Total proposals

Proposed Investment

(US$ million)

Proposed Employment (Numbers)

IEM + LOI

IEM + LOI

% Share

IEM + LOI

IEM + LOI

Mar-01 292 292 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

Industrial Investment Inflow Share of Uttarakhand in Total Industrial Investment proposals

*Investment Proposals since March 2004 also include DILs

1.2

1

0.8

0.6

0.4

0.2

0 Mar’01

1.00.87

0.670.64

1.4

1.6

0.64

1.43

Mar’02 Mar’03 Mar’04 Nov’04 Dec’05

Perc

enta

ge

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


Investments in Uttarakhand

Year Numbers Proposed Investment

(US$ million)

Aug 1991 to Dec 2000

265 1,173.72

2001 21 128.60

2002 19 73.02

2003 110 220.00

2004 116 619.30

2005 2005 1,211.39

Year-wise Distribution of IEMS Filed in Uttarakhand till 31.12.2005

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


Upcoming Investments

Sector Expected 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

Processed 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 Technology

US$ 34.88 million HP (Hewlett-Packard) and HCL Infosystems

Investment envisaged in Uttrakhand (In US$ million)

n Automotive n Pharmaceuticals n Processed Foods n Footwear

n FMCG n Information Technology

1,767.44

174.42

60.7746.51

34.88

34.88


Key Investors

Name of Company

Location Products Project Cost in US$ million

ITC Limited 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 Limited

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

VIP Industries Ltd

IIE, Haridwar Plastic moulded luggage 3.95

Lakhani India Ltd IIE, Haridwar Footwear and parts 3.70


ITC

• One of India’s foremost private sector companies with a market capitalisation 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 administrative control of department of IT

Key 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

Key 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 2008-09. Phase II is expected to be operational by 2010

Mahindra & Mahindra

• Mahindra & 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

Key Investors


Hindustan Lever

• HLL is India’s largest fast moving consumer goods company

• Hindustan Lever Limited’s (HLL) state-of-the-art personal care factory, set up with an initial investment of US$ 30.23 million in SIDCUL’s IIE in Haridwar

HCL Infosystems

• 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 HCL to 2 million personal computers per annum

Key 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 offers over 8,000 products universally

• Nestlé India has commissioned in 2006, its 7th factory at Pant Nagar in Uttarakhand

Key Investors


Britannia

• Britannia is one of India’s food products company, with an estimated 38% 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

Key Investors


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DOING BUSINESS

Key Approvals Required

DOING BUSINESSUTTARAKHAND • October 2007

List of Approvals and Clearances Required

Departments to be Consulted

Prior to setting up the unit

Registration Industries Department

Allotment of Land/Shed Uttarakhand Industrial Development Department Ltd./UttarPradesh State Industrial Development Department Ltd./ Industry Division, Uttarakhand

Power load approval for construction load

Uttarakhand State Electricity Department

Approval for Construction of Building Activity under Factories Act

Labor Department

No Objection Certificate Department of Fire

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 Department of Fire

Permanent Trade Tax Registration Permanent Trade Tax Registration

Registration under Central Sales Tax Act 1956

Central and State Excise Departments

S. No. Sector Cost

1 Manufacturing

a Land Price (US$/sq mt)*

22 – 37

b Labor (US$/man year) 552 – 846

2 Industrial Electricity (US cents/unit)

a Normal Hours 4.6

b Peak Hours 5.8

c Non-Peak Hours 4.4

3 Prime Lending Rate (%) 12.75% - 13.25%

4 Hotel Stay (US$/night)

a 2 Star 37 – 49

b 3 Star 49 – 73

Cost of Doing Business


Business Climate

Abundance of Natural Resources

• Abundance of natural resources

• Presence of many water bodies make it ideal for hydro power generation

• Ample irrigation, favourable geographical and climatic conditions make it ideal for Agro based industries

Location Advantage

• Proximity to NCR makes it one of the nation’s leading market accessible from Uttarakhand

• Also, the state has excellent connectivity to all its neighboring states

Expanding Industrial Infrastructure

The state has seen considerable overall development as a result of the policies of the State Government.


Business Climate

Favorable Policies and Incentives

• Large benefits offered by state in terms of tax exemptions, reimbursements on loans, interest incentives, financial assistance, subsidies and concessions

High Literacy Rates

• State’s literacy average is above the national level

• Abundant pool of talented human resources as Uttarakhand is host to some of the leading educational institutions in the country

Proactive Government

• Government is reputed for its efficiency which is very well reflected in the policies brought out by the state that addresses current issues in the administration


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OVERALL STATE COMPETITIVENESS

Advantage Uttarakhand

OVERALL STATE COMPETITIVENESSUTTARAKHAND • October 2007

• Proactive State Government and efficient administrative system

• Wide range of fiscal and non-fiscal incentives

• Excellent connectivity internally and to the National Capital Region (“NCR”) and continual development of good transportation infrastructure

• Wide-spread 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 providing opportunities in the mining sector

Advantage Uttarakhand

• Quality education infrastructure coupled with presence of premier institutes like Indian Institute of Technology in the district of Roorkee

• Huge potential for hydropower generation as a result of vast water resources

• Unmatched tourism potential for leisure, adventure, and religious tourism

• Peaceful 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 & Mahindra, Ashok Leyland, Hero Honda, Hindustan Lever, and HCL Info Systems

Source: Uttarakhand State official website Official website of Ministry of External Affairs, GOI, www.indiainbusiness.nic.in, Indiastat


Overall State Competitiveness

Parameter Uttarakhand

Opportunities in Type of Industry

Tourism

IT Based Industries

Tea Based Industries

Food Processing Industry

Pharmaceuticals and bio-tech

Agro Based Industry

High Medium Low




Opportunities in Type of Industry

Forest Based Industry

Mineral Based Industry

Engineering Industry

Chemicals Industry

Handloom and Handicrafts Sector

High Medium Low




Policy Incentives

Setting up and Carrying out Business

Industrial Infrastructure Existing and Proposed

Power

Transportation

Industrial Estates/Areas

STP

High Medium Low




Industrial Infrastructure Existing and Proposed

EPIP

EPZ

High Medium Low


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DISCLAIMER

UTTARAKHAND • October 2007

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