Potential Sector AJK

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Feasibility

Comprehensive Feasibility Study for Commercial exploitation of Nangimali RubyDeposits has been prepared in 2003. The Study envisages annual production of 300kgs production after 2 years mine development. Total investment is estimated to be

Rs. 112 million.

2. ESTABLISHMENT OF GRAPHITE PROCESSING PLANT

Location

The graphite deposits are found in Bagnaunwali Seri, Tarli Domel andMohriwali areas of Upper Neelum Valley. The area falls in Survey ofPakistan Toposheet No.43-J/5 & I / 8.

Accessibility

Bagnaunwali Seri, Tarli Domel and Mohriwali areas are about 6 km, 13 km and 35km from Kel respectively. The Kel is about 160 kilometers north east ofMuzaffarabad. Kel is linked with Muzaffarabad by partially metalled road open forabout 8/9 months, whereas onwards by a fair weather road open 5 to 7 months.

Reserve Potent ial

A total of one million ton proved reserves of graphite are present at all threelocalities

i.e. Bagnaunwali Seri (0.3 m ton), Tarli Domel (0.6 m ton) and Mohriwali (0.1 m tone).

The graphite at first two localities is foundry grade whereas last one is crucible grade.

Feasibility

A comprehensive feasibility study covering mining, processing & marketing wasprepared in 1989. In the said feasibility study total investment required was Rs.67.00 millions which needs to be updated.

3 ESTABLISHMENT OF CEMENT MANUFACTURING PLANT AROUNDMUZAFFARABAD

Location

The limestone / Shales and Gypsum (Cementious material) bearing areas arelocated within 10 km2 radius around Muzaffarabad town. The area falls in Surveyof Pakistan Toposheet No.43-F/7.

Accessibi li ty

The limestone and shale deposits of Batmang area are located on all weathermetalled (Neelum valley) road at a distance of about 4 km North of Muzaffarabad..


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The deposits of gypsum are located at Sherwan, Shawai, Balok Bhana and Thangararea about 2 to 4 km Northwest of Muzaffarabad and are easily accessible with allweather roads.

Reserve Potential

About 100 million tones reserves of limestone / shales and four million tones ofgypsum are present.

Feasibility

Preliminary feasibility study covering reserve potential and suitability of materialfor cement manufacture is available. Different studies including costs, marketing,size and location of plant etc. are to be done. Tentative investment required forestablishing a cement plant with 2000 ton / day capacity is Rs. 3.00 billion.

4. ESTABLISHMENT OF BENTONITE PROCESSING PLANT

Location

The Bentonite deposit of Sadiqabad-Kathar is located near Dudial, District Mirpurand fall in Survey of Pakistan Topographic Sheet No.43-G/11.

Accessibility

The Mirpur town is the District headquarter and lies about 120 kms fromRawalpindi and connected through the grand truck road via Dina and Mangla. TheDudial town can be approached at a distance of 65 kms from Mirpur along Mirpur-Chakswari road and 85 kms from Rawalpindi via Kalar Sayyadan-Dan Gali road.

Reserve Potent ial

Four million tones proved reserves of bentonite are found in Dudial area.

Market Studies

Presently activated fullers earth is being produced in the country and is alsoimported from West Germany, China, USA, U.K, Malaysia and Indonesia to meetthe shortfall in demand.

FeasibilityA Comprehensive Feasibility Study for Commercial exploitation of Dudial

bentonite and establishment of Fullers earth plant is available. To mine and process

25 tonnes of bentonite per day Rs 93.00 millions will be required as per estimates

prepared in 2006.


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5. QUARRY DEVELOPMENT & ESTABLISHMENT OF GRANITE /MARBLE CUTTING, POLISHING PLANTS IN NEELUM ANDMUZAFFARABAD DISTRICTS

Location and Accessibility

The Marble & Granitic terrain lies towards NE of Muzaffarabadtown. The area falls in survey of Pakistan toposheet Nos 43 / F10,14,15 & 43 / J1 &9.The area can be approached through Neelumvalley road. Upper reaches of major streams passing through thegranitic terrain are accessible by fair weather truckable roads.

Khawaja Seri Area

Khawaja Seri is located at about 150 kilometers North east of Muzaffarabad onKel- Neelum valley road. The dolerite (black coloured) deposit is about 1 to 1.5kilometers off the main road. In this area total of three dolerite bodies of differentsizes have been located. They are intermittently exposed at different topographic

levels indicating them as a part of the same mass underneath.

The tentative calculated reserves are about 100 million tons on the basis of exposedlength, thickness and workable depth.

Kensi Area

Kensi is located at 95 kilometers north east of Muzaffarabad. The first 70kilometers are on main Neelum valley road and the rest 25 kilometers onKundalshahi Jagran road. The quartzite is silver grey coloured and reserves aremore than 150 million tons.

Keran Granite

Keran is located at about 90 kilometers from Muzaffarabad. The granite deposits lieon main Neelum valley road. The granite is grey coloured having extensive

reserves. The rock is less jointed and the size of the block extracted for cutting and

polishing purposes is exceptionally of good size and grade. The tentative calculatedreserves are about 289 million tons on the basis of exposed length, thickness andworkable depth.


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Chaijwa Nala

The Chaijwa village is located at about 65 kilometers north east of Muzaffarabad.The first 60 kilometers (up to Jura) are on main Neelum valley road and the rest 5kilometers on fair weather 4X 4 truckable road. The dolerite deposit is black incolour with tentative reserves of one million ton

Chugian Nala

Chugian is located about at about 50 kilometers north east of Muzaffarabad. The first30 kilometers are on main Neelum valley road and the rest 20 kilometers on fairweather 4 X 4 truck able road. This is very promising area having several dolerite (jet

black) and light whitish grey granite deposits.

A total of eight dolerite bodies of different sizes have been marked between Harlato Trakana baihks in Chugian Nala and onwards to eastern slopes of Sarsangar gali.They are intermittently exposed in a 3 km long belt at different topographic levelsindicating them as a part of the same mass underneath. The lowest level so far

located is at 2500m ASL in Pathra baihk that passes up to Sarsangar Gali at 3130mASL. The numerous occurrences and their lateral extension indicate huge reserves.

The grey granite found in the area is fine grained, less jointed and large size blockscan be extracted for cutting & polishing. This has been indicated a potential target.The tentative calculated reserves are about 157 million tons on the basis of exposedlength, thickness and workable depth.

Market StudiesAbout 60 tons of granite samples (grey & black) from various deposits were cut and

polished. The material is unique and highly desirable in the local & internationalmarkets.

FeasibilityComprehensive geological studies are underway and on its completion a miningfeasibility study for commercial exploitation of these deposits shall be prepared.Tentatively Rs. 250 to 300 million will be required for quarry development andcutting / polishing plants.

AZAD KASHMIR MINRAL & INDUSTRIAL DEVELOPMENT CORPORATION

Near Abbass Institute of Medical Science Ambor,

P.O. Box #8, Muzaffarabad, Azad Kashmir

PH: 05822-921577, 921578, 921580, Fax: 05822-921576


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TOURISM INAZADJAMMU &KASHMIR

Tourism has

established itself

as an importantindustry in the

world. It has proved its effectiveness in economic uplift as well as in introducing

historical and traditional heritages. Besides other benefits, Tourism is a growth

industry and grows faster than most other exports oriented industries. Tourism

industry may promote a better image of the country and thereby enable it to

achieve other objectives. Tourism can be an instrument of a process of

transferring wealth from richer parts to the poorer parts of the country and

securing a more equitable distribution of wealth.In Azad J ammu & Kashmir potential-wise, after hydro power, tourism

can be described as the other main resource.

Tourism in Azad Jammu & Kashmir:

Azad Kashmir is bestowed by nature with exquisite natural beauty and has

great potential for development of tourism. The picturesque beauty of its

valleys, dense forests, winding rivers, turbulent foaming streams, majestic

towering mountains, bracing climate, historical & cultural heritage, holistic

shrines & festivals and diversity of flora and fauna all go together to make it an

excellent tourist resort.. The area is full with variety of landscapes. Hiking and

tracking sites, trout fishing in the frozen waters of the Neelum River and the

remains of the Buddhist civilization in the Sharda Valley are other areas of

tourist attraction. The beautiful wood work, the famous Kashmiri handicrafts,


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traditional Kashmiri foods and above all a clean and pristine environment

presents other areas of delight for the tourists on this heaven on earth. The

custom rich and traditional society of AJ K is also a subject of anthropological

value.

The State of Azad J ammu & Kashmir contributes a distinctive cultural entity

developed by its people, which is profoundly different from the rest of the Sub-

Continent. Its mountain terrain and wide valleys decanted harsh terms on the

development of its culture. This is why the people of Azad J ammu & Kashmir

have developed into a persistent hard-working, non aggressive race which

leads a simple & frugal life. Their dances, music, dress, traditions, jewelry,

handicrafts and performing arts all are windows to their character.

A- HELI-TOURISM:

The Heli-Tourism product is a new initiative world-wide, which is the largest

service provider, to enable tourists to travel from one destination to another

with the double benefit of cutting down on travel time while enjoying a birds

eye-view of the unique beauty of nature. For those who can pay, the joys of

chopper rides might be a lot more accessible than the vicarious pleasure of

seeing a screen. Moreover, the vertical lift technology of helicopters has far

more utilitarian aspects to its credit than only being an effective mode of

transport. Besides connecting the remotest places to the centre, helicopters

can perform SAR (Search And Rescue), EMS (Emergency Medical Services),

Law Enforcement, Power Line Survey, Fire Fighting, ENG (Eloctronic News

Gathering) missions etc.

In Azad J ammu & Kashmir, heli tourism services to popular destinations, could

tag convenience with a sense of adventure as well as pack in the utility of quick

travel. The heli service may be expensive but is likely to grow in popularity.

There are keen adventure enthusiasts would like to travel to inaccessable

mountain peaks for trekking, skiing, paragliding and bunjee jumping etc.

Besides, heli service could also be used for other official purposes as well for

SAR (Search And Rescue), EMS (Emergency Medical Services), Law

Enforcement, Power Line Survey, Fire Fighting, ENG (Eloctronic News

Gathering) missions etc. especially proven services rendered by the helicopter

during the disastrous earthquake of 2005.


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The Govt. of AJ K taking all these aspects into consideration, decided in

principle to setup a heli-service for tourist operations as well as multiple

purposes. In this regard, AJ K Tourism Department intends to establish Heli-

Tourism in AJ K through PublicPrivate Partnership, which is planned for

Improvement of accessibility in AJ K and regions of potential tourist areas,

which are not connected by roads. Promoting arrivals to the destinations of

interest by creating hub & spoke operations, giving impetus to Heli-Tourism and

helicopter services to areas not serviceable by fixed wing aircraft is the main

theme of the project. In this regard, Bids/ Offers are invited from reputed

organizations for the long term Heli-Tourism operations. Specifications of the

Helicopters and terms & conditions can be obtained from office of the Director

General AJ K Tourism & Archaeology, Muzaffarabad.

B- Chairlif ts/ Cable Cars:

Chairlifts & Cable Cars are considered to be very popular mode of

recreation. Azad J ammu & Kashmir has many beautiful

places which due to their locations, altitude varying from 5000

Ft to 8500 Ft above sea level, enchanting surroundings and

aesthetic atmosphere have great potential for installation of

Chairlifts & Cable Cars etc. Installation of such devices will not

only provide linkage between adjacent tourist spots but also

create additional recreational facilities to the locals and visitors

besides enhancing the tourist potential and economic

development of the areas. Survey & Feasibility Study has been

carried out through a reputed expert Firm. The Consultant Firm

has recommended that installation of chairlift/ cable cars in

between Saran-Pirchinassi is a most feasible project with the

following submissions:

SITE POTENTIAL

Saran Pir Chinassi Project is Located in Muzaffarabad District,

East of Muzaffarabad City Some 27 Kilometers away

approachable by a Black Top Road. Saran Has An Altitude Of

2,335 Meters And Already Has A Tourist Lodge. Pir Chinassi has


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an altitude of 2,924 meters and tomb pir shah hussain bukhari is

situated at the top of Pir Chinassi peak. The proximity to the

capital city, natural beauty of the area and the tomb of Shah

Hussain Bukhari make this site the premier location for the

installation of cable car system.

SYSTEM TECHNICAL DETAILS

SYSTEM 8 MGD (8 PERSON MONO-CABLE DETACHABLE

GONDOLA)

CAPACITY 1000 PERSONS \ HOUR

NUMBER OF PARS/CABIN 8 PERS

SPEED 5 METERS \ SECOND

LOCATION OF DRIVE STATION I (Saran Area)

LOCATION OF RETURN STATION 2 (Pirchinassi Top)

LENGTH 2.0 KM

HEIGHT DIFFERENCE 500- 800 M

NUMBER OF CABINS 19 NOS

TRIP TIME 15 - 20 MINUTES

CAPITAL COST ESTIMATES

The cost is subject to changes in the cost of equipment, Rupee Euro

exchange rate and general inflation and should be taken only as a

notional figure.

SUMMARY OF CAPITAL COST ESTIMATION

SUMMARY OF CAPITAL COST ESTIMATION

Item Rs. Millions)

Cost of Ropeway System

(Euro 6.0 million @ Rs.115)

690.00

Taxes @ 30% 207.00

Freight (Karachi - Saran/ Pir Chinassi 3.00

Ins. @ 2% 18,00

Construction (Pylons +Stations) 82.00

Total = 1000.00


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HYDRO POWER GENERATION

The State of Azad Jammu & Kashmir by virtue of its topography, meteorology

and hydrology is blessed with abundant hydropower potential. A comprehensive planning

of the hydropower resources of the State has been carried out by WAPDA in

collaboration with international agencies for carrying out the comprehensive planning

of available hydropower resources with the following objectives:- To assess the total hydropower potential of the rivers/streams available

to meet the national power demand and the local demand in isolated

system.

To rank the identified projects for development in order of priority both for

national and local power needs.

The study area comprised of a part of Jhelum river basin, upstream of Mangla

reservoir, which lies within the territory of Azad Jammu & Kashmir The study conducted

preliminary investigations, identified potential sites and gave recommendations for further

detailed studies on sites ranked to be most viable.

As a result of these investigations a number of sites have been identified, that

offers attractive prospects. According to preliminary estimates, potential of about 7000

MW has been identified in the three major river catchments and their tributaries in

Azad Jammu & Kashmir. Important features of these project sites are:


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Early rising characteristics during lean periods when output from other hydropower

stations are low.

Run-off-river schemes that dispense with large storage reservoirs causing

environmental imbalances. A favorable topography that supports high head hydropower projects

that utilized simple technology.

High annual plant that insures reliable supply for most part of the year.

Project locations in close proximity to urban load centers.

AZADJAMMU&KASHMIRHYDROELECTRICBOARD

The Govt. of AJK has assigned top priority to the exploitation

implementation and development of hydropower projects in the territory and

.has constituted Hydro Electric Board for the development of hydel potential in

AJK. Public sector projects are implemented by Managing Director Hydro

Electric Board, whereas; Private sector projects are coordinated/processed by

Director General Private Power Cell under the Administrative Control of

Secretary Electricity/HEB/PPC of Govt. of AK.

In 1989, the Govt. of AJK established Hydro Electric Board to plan and to

undertake development of identified hydro potential. It has so far completed 07 projects

having total installed capacity of 37.6 MW. Major advantages in exploiting hydropower

potential of AJK are:-

Convenience of interconnection with major high voltage grid network of

WAPDA.

Low cost of transmission/ dispatch.

Low construction cost of power station. Availability of reliable and credible data on Topography, Hydrology, Geology,

Seismology, and power systems.

Availability of construction material and skilled/ unskilled labor.

Risk free environment. Peaceful, law abiding populace with no ethnic or law/

order problems.


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At present, total demand of electricity of AJK is about 400 MW, which would

increase upto 700 MW 2015. The following projects are ready for investment.

S.No NAME OFPROJECTS

CAPACITY(MW)

ESTIMATEDCOST

(MUS$)

1 DOWARIAN 40 54.414

2 LUAT 49 76.355

3 NAGDAR 35 66.929

4 SHOUNTER 48 91.76

5 JANAWAHI 12 20.553

6 TAOBUT 10 22.104

Total 194 332.115

The plan of the following Hydro Power stations has been approved by the

planning commission of Pakistan.

Project CapacityMW

Estimated Cost(in Million)

Gul ur 60.00 Rs. 6000.00Ja ranJI 43.5 Rs. 4600.00Jhin 7.5 Rs. 1800.00Kotli 100 Rs. 9500.00Chakothi 131 Rs. 11500.00Total 342 Rs. 31600.00

THE POWER POLICY 2002 PROVIDES THE FOLLOWING

INCENTIVES FOR INVESTORS IN PRIVATE SECTOR;-

1. FINANCIAL REGIME

a) Permission for power generation companies to issue registered

bonds.

b) Permission to issue shares at discounted prices to enable venture

capitalists to be provided higher rates of return proportionate to the

risk.

c) Permission for foreign, bank to underwrite the issue of shares and

bonds by the private power companies to the extant allowed under

the laws of Pakistan.


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d) Non-residents are allowed to purchase securities issued by Pakistani

companies without the State Bank of Pakistan's permissions and

subject to the prescribed rules and regulations.

e) Abolition- of 5% limit on investment of equity in associated

undertakings.

f) Independent rating agencies are operating in Pakistan to facilitate

investors in making informed division about the risk and profitability

of the project company's Bonds/TFCs.

2. FISCAL REGIME.

a. Customs duty at the rate of 5% on the import of plant and equipment

not manufactured locally.b. No levy of sales tax on such plant, machinery and equipment, as the

same will be used in production of taxable electricity.

c. Exemption is already available from income tax including turnover rate tax

and withholding tax on imports; provided that no exemption of income tax on

oil-fired power plants.

d. Repatriation of equity alongwith dividends is freely allowed, subject to

the prescribed rules and regulations.

e. Parties may raise local and foreign finance, in accordance withregulations applicable to industry in general. GOP approval may be required in

accordance with such regulations.

f. Maximum indigenization shall be promoted in accordance with GOP policy.

3. PRIVATE SECTOR PARTICIPATION.

In view of the financial constraints, it has been well realized that private sector

can play an effective role in the development of hydropower projects in AJK. A policy

framework of the Government of Pakistan, which provides guidelines for

participation of private sector in the development of hydropower projects, has also been

adopted in AJK, HEB/Private Power Cell encourage response from the investors and

Letters of Intent (LOI)/Letters of Support (LOS) for these projects to investors to

promote development in this sector.

Foreign private investment would be a break through in the developmentof hydel sector in AJK and would also lead to social-economic uplift of theregion.


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POTENTIAL HYDRO POWER PROJECTS FOR INVESTMENT

S.No NAME OF PROJECTS CAPACITY(MW)

ESTIMATEDCOST

(MUS$)

1 DOWARIAN 40 54.414

2 LUAT 49 76.355

3 NAGDAR 35 66.929

4 SHOUNTER 48 91.76

5 JANAWAHI 12 20.553

6 TAOBUT 10 22.104

Total 194 332.115

TECHNICAL & FINANCIAL PARAMETERS40 MW DOWARIAN HPP

1. Name of Project Dowarian Hydro Power Project

2. Location Located on Dowarian nallah (District Neelum)about 97Km from Muzaffarabad

3. Capacity 40 MW

4. Gross Head 510m

5. Design discharge 9.6 m3/s

6. Mean annual flow 5.97 m3/s

7. No. of units 04 (Pelton turbines)

8. Annual Energy generated 170.83GWh

9. Plant factor 48.77 %

10. Generation Voltage 11 KV

11. Project Investment Cost 54.414 (M.US$)

12. Project Economical IRR 39.74 %

13. Project financial IRR 18.91 %

14. Unit Cost 4.484 (Rs./KWh)

15. Status Detailed Feasibility Study (Available)


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TECHNICAL & FINANCIAL PARAMETERS49 MW LUAT HPP

1. Name of Project Luat Hydro Power Project

2. Location On the right bank of Chutiari Nallah (DistrictNeelum) about 95Km from Muzaffarabad

3. Capacity 49 MW

4. Gross Head 618m

5. Design discharge 9.6m3/s

6. Mean annual flow 6.90m3/s



9. Plant factor 49.9%

10. Generation Voltage 11KV


12. Project Economical IRR 34.68%

13. Project financial IRR 17.01%



TECHNICAL & FINANCIAL PARAMETERS35 MW NAGDAR HPP

1. Name of Project Nagdar Hydro Power Project

2. Location On the right bank of Nagdar Nullah about 92 Kmfrom Muzaffarabad

3. Capacity 35 MW

4. Gross Head 470 m

5. Design discharge 09 m3/s









14. Unit Cost 6.496(Rs./KWh)



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TECHNICAL & FINANCIAL PARAMETERS48 MW SHOUNTER HPP

1. Name of Project Shounter Hydro Power Project

2. Location Proposed on Baral river

3. Capacity 48 MW

4. Gross Head 132 m



7. No. of units 04 (Francis turbines)


9. Plant factor 48.75 %10. Generation Voltage 11 KV




14. Unit Cost 5.951(Rs./KWh)


TECHNICAL & FINANCIAL PARAMETERS12 MW JANAWAHI HPP

1. Name of Project Janawahi Hydro Power Project

2. Location Proposed on Baral river

3. Capacity 12 MW

4. Gross Head 400 m




8. Annual Energy generated 51.73 GWh








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TECHNICAL & FINANCIAL PARAMETERS10 MW TAOBUT HPP

1. Name of Project Taobut Hydro Power Project

2. Location Proposed on Gagai river

3. Capacity 10 MW

4. Gross Head 66.0 m



7. No. of units 04 (Francis turbines)








NAME OF PROJECTS CAPACITY(MW)

ProjectInvestment COST

(MUS$)

JAGRAN-IV 24 42.00

CHANGAN 9.0 17.00

HARIYOLA-ZAMINABAD 21 28.00

Total 54 87.00


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PROJECT PROFILE 22 MW JAGRAN-IV

1. Name of Project Jagran-IV Hydro Power Project2. Location Located on Jagran river about 86 Km from

Muzaffarabad

3. Capacity 22.0MW

4. Gross Head 156 m



7. No. of units 04(Francis turbines)







15. Status Detailed Feasibility Study Completed

PROJECT PROFILE 9 MW CHANGAN - II

1. Name of Project Changan - II Hydro Power Project

2. Location Located on Changan nullah about 103Km fromMuzaffarabad

3. Capacity 9.0MW

4. Gross Head 360m



7. No. of units 03(Pelton turbines)

8. Annual Energy generated 38.46GWh9. Plant factor 48.9 %







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PROJECT PROFILE 14 MW HARIYOLA-ZAMINABAD

1. Name of Project Hariyola-Zaminabad Hydro Power Project2. Location Located on Agar nullah about 20 Km south of

Muzaffarabad

3. Capacity 14.0MW

4. Gross Head 366m



7. No. of units 04(Pelton turbines)









FOR FURTHER DETAIL PLEASE CONTACT

Azad Jammu and Kashmir AJK Hydro Electric Board B-36 Upper Chatter Housing

Scheme Muzaffarabad.

Phone No. 05822-921064Fax No. 05822-921063


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4. KASHMIRI SHAWLS

About Kashmiri Shawls, it is said that of all sub-continent textiles none

excel in beauty, colour, texture and design of the famous Kashmiri Shawl.

Kashmiri Shawls have been renowned since centuries and were favorite of

French Queen, Marie Antoinette. With a long tradition of artistic excellence, the

shawl is the most admired hand-made fabric of Kashmir. Shawls are produced

by two techniques, loom woven or kani shawls and the needle embroidered or

Sozni Shawls.

The basic fabric is of three types-Shah-Tush, Pashmina and Raffle. Shah-

Tush (King of wool) the shawl that passes through a ring and is also known as

Ring Shawl. It comes from a reare Tibetan antelope living at a height of over

14000 ft in the wilds of the Himalayas. Soft yet war, legend goes to say that it

can hatch a pigeons egg.

Pashmina known all over the world as cashmere wool. It comes a special

goat (Capra hircus) which lives at an altitude of 12000 to 1400 ft.

Potential InvestmentHandicrafts/SMEs

PotentialInvestment Areas

Unit costper project

Traditional Kashmiri Shawl-Bafi Shah-Tush

Pashmina Raffle & others

Muzaffarabad Dhirkot Bagh

Rawalakot

2.500 million


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5. NUMDAH/GABBA

A Numda is a piece of pressed felt made either out of wool and cotton or

entirely of wool. Wool and cotton or unspun wool is evenly spread over a mat

and then rolled and pressed underfoot for felting the felted piece is then milled,

washed and dried. Plain as well as embroidered Numdahs can be seen in the

entire area of Azad J ammu & Kashir. The Numdah Makes a warm, colorful and

inexpensive floor covering and is also used as a mattress, where the climate is

colder. Originally, the plain Numdah rug came from Yarkand and was then

embroidered in Kashmir. The Numdah sizes range from 2x3, 3x4, 4x6, to 6x9

feet and 3x4, 5x6 dia in round shape. The quality depends upon percentage of

wool in the felt. Popularly made quality is made 32% wool, 50% wool and 100%

wool. Designs are generally styled depicting flowers and leaves, animal figures,

folk life scenic views.

Gabba, a Common mans carpet, is made of used lois or blankets which

are washed, milled and dyed in various colors. Gabba making is a house hold

craft is which family members, especially girls and women, help the

embroiderers in stitching together pieces of used lois and giving them a

backing of a waste cotton cloth, washing and dying is done indigenously.

There are two types of gabbas-embroidered and appliqud. Bold and vivid

emproidery is done mostly in woolen yarn. In some cheaper types of gabbas, a

cotton yarn is used instead. In the appliqud type, pieces of dyed blankets are

joined together and interspread with embroidery. Gabbas look very gay with

bright flashes of designs on a dark, somber background.

Potential InvestmentHandicrafts/SMEs

PotentialInvestment Areas


Woolen Products

Plain Numda Embroidered Numda Gubba Chain st itch

Muzaffarabad 2.000 mil lion


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6. PAPIER MACHIE

A French term so commonly adopted in the East as well as West and

meaning Mashed Paper. Papier Machie is one of the most popular of crafts

practiced in Azad J ammu & Kashmir today.

The first Papier Machie object produced in Kashmir were Kalamdans,

long horizontal cases for holding pens, brushed and ink-pots, giving it the

original local name of the crafts, Kari-Kalamdani, pen case work. The

techniques involved in Papier Machie production are divided into two distinct

categories. The first is Sakhtasazi, making the object, the second is Naqashi,

painting the surface.

Potential Investment

Handicrafts/SMEs

Potential

Investment Areas


Papier Machie Muzaffarabad 15.000


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Mineral Potential of Azad Jammu &

Kashmir.

Minerals play vital role in economic development. Azad Kashmir has greatmineral potential.

To get the most significant benefits of mineral wealth of AJ&K. Government ofAzad Jammu & Kashmir has established a separate Department of Mineral

Resources. The department has issued No. of Exploration permits & Mining

Leases of different minerals. With the result different minerals have been

discovered. Mostly at present prospection work is being carried out. However,

Precious (Ruby) & Semi Precious stones (Tourmaline etc.), Coal, Marble,

Bentonite and Dolomite are being mined on small scale . The available

geological information provides ample evidence that Azad Kashmir could be

blessed with large mineral deposits. Presently mining sector in Azad Kashmiris, however, confined to small scale and contribute less than one percent of

GDP. Mineral potential can be well utilized for sustainable socioeconomic

development of local population in mineral bearing areas.

Regulatory Regime - Laws enforced in AJ&K

Regulation of Mines & Oil Fields and Mineral Development Federal ControlAct, 1948.

Azad Jammu & Kashmir Mines Act, 1977. Azad Jammu & Kashmir Mining Concession Rules, 2002. Azad Jammu & Kashmir Minor Mineral Rules, 1994. Consolidated Mines Rules, 2007. AJ &K Regulation of Coal Mines, 2007. AJ&K Regulation of Metaliferous Mines, 2007.

Procedure for grant of mining concessions (Major Minerals)

Applications are received on prescribed proforma alongwith application fee,

proof of financial capabilities of the applicant and 10 copies of the Topographicmap of the area.

Initially exploration permits are issued for one year and exploration licences for1-3 years.

Exploration licences/exploration permits are converted into mining leases /mining permits on submission of exploration report by the licence holders.

Conversion fee for exploration licences into mining leases is Rs. 25000/- andfor exploration permits into mining permits is Rs. 5000/-

Mining leases may be granted upto 30 years and mining permits upto 10 years. Exploration Licenses/Mining Permits/mining leases are granted with prior

approval of Mines Committee / Mines Sub-Committee.


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Incentives Available to Mineral Projects -Under National Mineral Policy.

Rate of Corporate Tax.o 30% for public sector companies

o 35% for private or non-resident mining companies. Minimum Corporate Tax.

o A minimum amount of corporate tax is payable annually at the rate of0.5% of the declared turnover.

Withholding Taxes.o Withholding tax levied on dividends paid from mining profits to non-

resident corporate share holders will be set at 7.5% but adjustable

against final tax liability.

Non-Resident Contractors:o The rate of withholding tax on non-resident contractors engaged in mining

operation will be 6% of the gross payments made to them. This will

represent their full final tax liability. Interest:

o Interest paid to non-residents in respect of availed approved loans isexempt from withholding tax.

Sales Tax:o No sales tax will be levied on minerals which are exported.

Zakat:-o Non-Muslims and non-resident share holders of a company are exempt

from the requirement to pay zakat on dividends.

Import of Mining Machinery:o Special concessions are given on imports of mining machinery and

equipment.

Royalty:- in lieu of local levies etc. Protection from expropriation:-

The Protection of Economic Reforms Act 1992, provides that no foreignindustrial or commercial enterprise established or owned in any form by

a foreign or Pakistani investors shall be compulsorily acquired or taken

over by the Govt. the mining sector will equally have this protection.


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(Form No. M-1) Govt. Press Mabad

1000F

Application

ForA PROSPECTING LICENCE / MINING LEASE, PRESECRIBED UNDER THE

AZAD JAMMU & KASHMIR MINING CONCESSION RULES, 2002

1) Name (s) of applicant (s) in Full ________________________________________________________________________________

2) If application is by an individual:-

a) Address _________________________________________________________________________________________________

b) Nationality _______________________________________________________________________________________________

c) Occupation _______________________________________________________________________________________________

d) Capital available (enclose Book Certificate showing latest credit balance and other documentary proof)

____________________________________________________________________________________________________________

____________________________________________________________________________________________________________

3) If application is by partnership or firm:-

a) Principal place of business ___________________________________________________________________________________

b) If principal place of business is outside Azad Kashmir/ Pakistan name and address of duly authorized agent in Azad Kashmir Pakistan

___________________________________________________________________________________________________________

c) Capital available (enclose book certificate showing latest credit balance and other document proof)

______________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________

d) Main business of application (s) (enclose a certificate copy or partnership deed and registration certificate issued by registrar of Firms).

______________________________________________________________________________________________________________________

___________________________________________________________________________________________________________

Name of Partners Nationality Share & amount contributed

(1) __________________________________________________________________________

(2) __________________________________________________________________________

(3) _________________________________________________________________________

(4) __________________________________________________________________________

(5) __________________________________________________________________________

(6) __________________________________________________________________________

4) If application is by a company:-a) Principal place of business

______________________________________________________________________________________________________________________b) If Principal place is outside Azad Kashmir/ Pakistan name and address of duly authorized agent

Azad Kashmir / Pakistan ______________________________________________________________________________________________

c) Nature of business ____________________________________________________________________________________________________

d) Authorized subscribed and paid up Capital (enclose Book Certificates showing latest credit balance and certified copies ofMemorandum of Association and Certificate of incorporation)


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e)Name of Districts Nationality

f) Name of Principal Nationality Amount ofshares hold

Share holders By share holders5) State mineral or group of minerals for which prospecting license or mining lease is required

________________________________________________________________________________________________________________________________6) State whether a prospecting license or a mining lease is required ____________________________________________________________________________7) Period for which license is required ____________________________________________________________________________________________________8) Situation and size of the area for which application is made (the name of village, Khasra Numbers, Tehsil and district, appropriate Revenue record, sketch of the area

and topographic map 1 to a mile with geographic bearing must accompany)_____________________________________________________________________________

9) Brief particulars of previous experience in mining giving details of prospecting licenses or mining leases or both already held or applied for in or outside Azad Kashmir /Pakistan______________________________________________________________________________________________________________________________

10) Name and qualification of technical experts or advisers who have prepared or certified the Exploitation Scheme and will be available for supervision (enclose two ofcopies of the Exploitation Scheme prepared or certified by Expert) ________________________________________________________________________________

11) State amount of capital for operations under the license or lease applied for:-a) at present available ______________________________________________________________________________________________________________b) Which application make available and the source.

____________________________________________________________________________________________________________________________________

((Please give Bank reference or some documentary proof in support of your statement).12) I f the application is an alien or a company incorporated outside Azad Kashmir / Pakistan. State full particulars of the company to be incorporated by the application in

Pakistan for the purposes of receiving the grant of any license or lease which may be granted including particulars similar to those specified in 4 (d) (e) (f) and 11above and the amount of the capital proposed ___________________________________________________________________________________________

(Documentary evidence of incorporation of the company in Azad Kashmir / Pakistan should be furnished along-with a copy of Memorandum an Articles of Associationand prospectus of the company as soon as the company has been incorporated in Azad Kashmir / Pakistan.

___________________________________________________________________________________________________________________________________13) Any special remarks _________________________________________________________________________________________________________________

I/We hereby declare that all the foregoing particulars are correct.A/We hereby undertake to reserve the amount of credit balance certified by the Bank as my / our capital exclusively for investment on works

connected with the license or lease applied.

I/We hereby solemnly declare that event of Government me us the required License / Lease. I/We will abstain from all political activity / activities

what so ever affecting the sovereignty of Azad Kashmir / Pakistan or such as may be tantamount to interference in its internal affairs and that i/We willeschew all espionage.

In the Event of any violation of this undertake by me / us the Government shall have the right to cancel the license / lease provided that any dispute as

to whether any of my / our activities can be considered as a violation of this undertaking, shall be decided in accordance with Rule 74 Azad Jammu &Kashmir Mining Concession Rules 1977 and the appropriate clause in the license / lease.

Signature (s) of Application (s) __________________________Date ____________________

14) The applicant is a company State capacity in which form is signed.Note). Application fee should be deposited in advance in any Government treasury in Azad Kashmir under the head XXXII-Industries-Mineral receipts arising out ofMines and Oil Fields and Mineral Development (Federal Control) Act, 1948. Other receipts at the rate of (a) Rs. 30 per mineral for the first 400 acres and rupees 10 foreach additional 400 acres or part thereof in case of prospecting license, and (b) Rs. 60 mineral in case of mining lease. A receipt copy of the chalan should accompanythe applicant, which should be addressed to the Director Mineral Resources, Azad Govt. of the State of Jammu and Kashmir, Muzaffarabad.

FOR FURTHER DETAIL PLEASE CONTACT

Directorate of Mineral Resources Govt. of Azad Jammu and Kashmir

Muzaffarabad.

Phone No.05822-920045


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INVESTMENT OPPORTUNITY IN AJK

MINERAL SECTOR

Azad Kashmir Mineral & Industrial Development Corporation (AKMIDC), a state

enterprise of the Govt of AJ&K, was established in 1971 under Act XVII. TheCorporation soon after its creation started mineral exploration & evaluation activities in

the state which are continued till now. The geological environment of AJK is

comprised of three types of rocks, i.e. Sedimentary, Igneous and Metamorphic. The

type of mineral deposits found are; Industrial Minerals, Gemstones, precious Metals

and Base Metals. The Industrial minerals and base metals are found in all the three rock

type and thus spread in the whole of the AJK territory, whereas gemstones are confined

to metamorphic terrain and thus occur in the upper parts of Neelum Valley. The most

economically promising mineral deposits are ruby, graphite, bentonite, granites &

cement materials and AKMIDC prepared comprehensive studies of these deposits. The

worth of proven mineral deposits is more than Rs. 70 million.

Sr.No Name of Mineral & LocationDistrict

Proved Reserves

(Million Tons)Probable Reserves (Million

Tons)Total Reserves

(Million Tons)

1 Ruby Neelum 40 million grams 05.000 45 million grams

2 Graphite Neelum 01.000 00.000 01.000

3 Bentonite - Mirpur &Bhimber

04.000 04.000 08.000

4 Granite 01.000 14.000 15.000

5 Marble - Muzaffarabad,Neelum & Kotli.

19.000 15.000 34.000

6 Limonite- Muzaffarabad 0.065 0.000 0.065

7 Coal - Muzaffarabad,& Kotli. 01.000 29.000 30.000

8 Lime Stone Muzaffarabad 70.000 30.000 100.00

9 Gypsum. Muzaffarabad &Hattian

4.000 01.000 05.000

10 Bauxite Kotli 05.000 02.000 07.000

11 Fireclay Kotli 05.000 02.000 07.000

12 Quartzite - Kotli 05.000 02.000 07.000

13 Pozzollana Kahuta 00.500 0.500 01.000


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Documents

Potential Sector AJK