Rajasthan

1. RAJASTHANNovember 2010 2. RAJASTHANNovember 2010 Investment climate of a state is determined by a mix of factors •Skilled and cost-effective labour • Procedures for entry and exit of firms •Labour market flexibility • Industrial regulation, labour regulation, other •Labour relationsgovernment regulations •Availability of raw materials and natural • Certainty about rules and regulationsresources • Security, law and order situation Resources/Inputs Regulatory framework Investmentclimate of a state Physical and socialIncentives to industryinfrastructure •Tax incentives and exemptions • Condition of physical infrastructure such as •Investment subsidies and other incentives power, water, roads, etc. •Availability of finance at cost-effective terms • Information infrastructure such as telecom, IT, •Incentives for foreign direct investment (FDI)etc. •Profitability of the industry • Social infrastructure such as educational andmedical facilities2 3. RAJASTHAN November 2010Contents Advantage Rajasthan State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Rajasthan3 4. ADVANTAGE RAJASTHANRajasthan November 2010Rajasthan – State profile • Covering an area of 342,239 sq km, Rajasthan is the largest state in India. • The state has 33 administrative districts. Jaipur is the state capital; Jaisalmer, Udaipur, Jodhpur, Ajmer, Bikaner, Alwar, Amber and Chittorgarh are the other key cities and towns in the state. • There are two major rivers flowing through Rajasthan: the Chambal and the Luni. • The state has nine agro-climatic zones and a variety of soils that support cultivation of crops such as wheat, rapeseed, mustard, soy bean, bajra (millet), maize and cotton. • The most commonly spoken language of the state is Hindi. Marwari, Jaipuri (Dhundhari), Mewari and Malvi are the other dialects popular in the state. English is the medium of education in most schools.Source: Maps of India4 5. ADVANTAGE RAJASTHANRajasthan November 2010Advantage Rajasthan … (1/2)Easy access to largest consumer marketsRajasthan touches six major states of the Northern,Western and Central India. It is a natural corridorbetween the wealthy Northern and the prosperousWestern states of the country, which makes it animportant trade and commerce centre.Facilitating infrastructureRajasthan has well-developed social, physical andindustrial infrastructure as well as good virtualconnectivity. The state is developing sector-specificinfrastructure such as special purpose industrial parksand special economic zones for exports of handicrafts, ITand electronic goods.Policy and fiscal incentivesThe state offers a wide range of fiscal and policyincentives for businesses, through sector-specific policiesfor tourism, biotechnology, IT and ITeS industries.Source: Maps of India5 6. ADVANTAGE RAJASTHANRajasthan November 2010Advantage Rajasthan … (2/2)Conducive environment for industrial growthRajasthan has favourable industrial-relationsenvironment with negligible incidents of labourunrest. In addition, the law situation in the stateensures good working environment.Basket of unexploited resourcesThe state offers a variety of unexploited agriculturaland mineral resources, which is indicative of scopefor value addition and exports.Competent talent poolRajasthan has been investing in capacity buildingthrough development of a strong institutionalnetwork at all levels. The state has 1,050 collegesincluding 80 engineering colleges, 58 polytechnicinstitutes and 846 industrial training institutes (ITIs).Unique tourist attractionsRajasthan‟s rugged forts, beautiful palaces,picturesque Thar Desert, bird sanctuaries andnational parks, lively fairs and festivals, lakes andSource: Maps of India mountains, fascinating handicrafts and colourfulculture make the state an attractive destination fordomestic and foreign tourists.6 7. ADVANTAGE RAJASTHANRajasthan November 2010Rajasthan in figures … (1/2) Parameter Rajasthan All-states Source Economy GSDP as a percentage of all states‟4.5100.0CMIE, as of 2007-08, current prices GSDPCMIE, 2000-01 to 2007-08, current Average GSDP growth rate (%)*11.5 11.8prices Per capita GSDP (US$) 684.9 992.5CMIE, as of 2007-08, current prices Physical infrastructureCentral Electricity Authority, as of Installed power capacity (MW)5,050.4159,398.5March 2010Cellular Operators Association of GSM cellular subscribers (No) 25,487,398 456,586,162India, as of June 2010 Broadband subscribers (No) 145,4494,981,976As of October 2008Ministry of Road Transport & National highway length (km)5,58570,548Highways, Annual Report 2008-09 Airports (No) 6133 Airport Authority of India Social indicators Literacy rate (%)60.4 64.8 Census of India, 2001Ministry of Health and Family Birth rate (per 1,000 population)27.5 22.8Welfare, RHS Bulletin, March 2008*Calculated in Indian rupee terms7 8. ADVANTAGE RAJASTHANRajasthan November 2010Rajasthan in figures … (2/2) Parameter RajasthanAll-statesSource Ease of doing businessDepartment of Industrial Policy and FDI inflows (US$ billion) 0.5120.2 Promotion,April 2000 to May 2010 Outstanding investments (US$ billion)53.6 1,972.6CMIE, as of March 2010 Industrial infrastructure PPP projects (No) 54515www.pppindiadatabase.comNotified as of July 2010, SEZ (No) 7363www.sezindia.nic.in PPP: public private partnership, SEZ: special economic zoneParameterRajasthan GovernmentPolicy supportHealthcare, biotechnology, IT and ITeS, tourism, non-conventionalSectors with specific policiesenergyAvailability of labourAdequate skilled labour available8 9. ADVANTAGE RAJASTHANRajasthan November 2010Key industries with policy thrust and factor advantages Industry attractiveness matrix High IT/ITeS and Electronics BiotechnologyTourismPolicy thrust AutocomponentsMediumCement Mining andmetals LowMediumHighFactor advantage*Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital 9 10. RAJASTHAN November 2010Contents Advantage Rajasthan State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Rajasthan10 11. STATE ECONOMY AND SOCIO-ECONOMIC PROFILERajasthan November 2010 Socio-economic snapshot of Rajasthan ParametersRajasthan Capital Jaipur Geographical area (sq km) 342,239 Administrative districts (No)33 Population density (persons per sq km)*165 Total population (million)* 56.5 Male population (million) 29.4 Female population (million) 27.1 Population growth rate 1991-2001 (%)17.3 Sex ratio (females per 1,000 males)* 921 Literacy rate (%)*60.4 Male (%)75.7 Female (%)43.9 Average life expectancy (years)Male 62.2Female 62.8 Sources: Economic Survey of Rajasthan 2009-2010, Directorate of Economics and Statistics *Census 2001 11 12. STATE ECONOMY AND SOCIO-ECONOMIC PROFILERajasthanNovember 2010 Rajasthan‟s GSDP •At current prices, the Gross State Domestic Rajasthan‟s GSDPProduct (GSDP) of Rajasthan was about US$2009-10 46.446.4 billion in 2009-2010. 2008-09 43.8 2007-08 43.9 2006-0736.5 •The average annual GSDP growth rate, from2005-06 28.61999-2000 to 2009-2010 was about 10.1 per2004-0525.9 CAGRcent.2003-0425.5 10.1% 2002-03 19.4 2001-02 19.1 2000-01 17.1 1999-0017.8 0.0 10.020.0 30.040.0 50.0US$ billion Source: CMIE12 13. STATE ECONOMY AND SOCIO-ECONOMIC PROFILERajasthanNovember 2010 Rajasthan‟s NSDP •At current prices, the Net State Domestic Rajasthan NSDPProduct (NSDP) of Rajasthan was about US$40.4 billion in 2009-2010. 2009-1040.4 2008-0938.3 2007-0838.2 •The average annual NSDP growth rate between2006-0731.81999-2000 and 2009-2010 was about 9.8 per2005-0624.7 CAGRcent.2004-0522.6 9.8% 2003-0422.5 2002-03 16.8 2001-02 16.8 2000-01 15.1 1999-0015.9 0.0 10.0 20.0 30.040.050.0 US$ billion Source: CMIE13 14. STATE ECONOMY AND SOCIO-ECONOMIC PROFILERajasthanNovember 2010 The tertiary sector has an increasing share in Rajasthan‟s economy •In 2009-2010, the tertiary sector contributedPercentage distribution of GSDP45.2 per cent to the state‟s GSDP at currentCAGRprices, followed by secondary sector (30.0per cent).42.2 45.2 11.0% •The share of the secondary sector in GSDP 25.8was driven by manufacturing that registered a30.0 11.9%growth of 9.7 per cent between 1999-2000and 2009-2010.32.0 24.7 7.5% •The share of the primary sector in GSDP was 1999-20002009-201024.7 per cent in 2009-2010 vis-à-vis 32.0 perPrimary Sector Secondary SectorTertiary Sectorcent in 1999-2000, agriculture contributingthe major share. Source: CMIE14 15. STATE ECONOMY AND SOCIO-ECONOMIC PROFILERajasthan November 2010Per capita GSDP• In 2009-2010, Rajasthan‟s per capita GSDP at current prices was US$ 699.2.• The per capita GSDP at current prices increased at a CAGR of 7.9 per cent from 1999-2000 to 2009-2010.Per capita GSDP800.0684.9 699.2700.0 672.4580.0600.0500.0 462.4 429.2 427.7400.0US$ 325.9 333.0 332.8 305.4300.0200.0100.00.01999-00 2000-01 2001-02 2002-03 2003-042004-05 2005-06 2006-07 2007-08 2008-09 2009-10Source: CMIE15 16. STATE ECONOMY AND SOCIO-ECONOMIC PROFILERajasthan November 2010 Distribution of households by income •The estimated percentage of population in Rajasthan below poverty line is 12.1 per cent as comparedto 26.1 per cent at the all-India level. •The share of urban households in educated and self-employed category in the state is in line with theall-India average.Distribution of rural households by SEC* Distribution of urban households by SEC* E220.452.618.5R4 E1 12.0 43.411.7 D 21.6 32.4 23.6R3C 18.5 40.620.0 B2 9.610.3 8.3R2 9.2 11.8B1 7.9 A26.24.6 6.6R1 2.5Urban4.1 RuralA1 3.5 0.0010.0020.0030.0040.00 50.00 60.00 0.005.00 10.0015.00 20.00 25.00In per centRajasthanAll-India In per centRajasthanAll-India Source: BW Marketing Whitebook, 2009-2010 *See Annexure for socio-economic classification (SEC) of households16 17. STATE ECONOMY AND SOCIO-ECONOMIC PROFILERajasthan November 2010 Consumer expenditure on household goods and services •Rajasthan is ahead compared to all-India in share of per capita expenditure on food. •With regards to share of expenditure on education and medical, the state is comparable to the all-Indialevel.Share of average monthly per capita expenditure on household goods and other services50.0%60.0% 52.3% 53.9%39.6%42.4% Urban Rural40.0%50.0% 40.0%30.0% 30.0%20.0% 20.0% 7.1% 8.0%10.0%5.2% 4.5%4.2% 3.2% 6.3% 5.8% 10.0% 3.7% 2.8%3.6% 2.2% 0.0% 0.0%Food Education Medical Durable Food EducationMedicalDurable goodsgoods All-India Rajasthan All-IndiaRajasthan Source: Household Consumer Expenditure in India, 2007-08 NSS 64th Round 17 18. STATE ECONOMY AND SOCIO-ECONOMIC PROFILERajasthanNovember 2010 Key industries in Rajasthan •The natural resources, policy incentives and Key industries in Rajasthaninfrastructure in the state are favourably suited forinvestments in sectors such as cement, IT and • CementITeS, ceramics, tourism, automotive and agro- • Auto and auto-componentsbased industries. • IT and ITeS• Ceramics •Bureau of Investment Promotion (BIP) andRajasthan Industrial Development and Investment • MiningCorporation (RIICO) are responsible for • Tourismpromoting investments and developing industrial • Textileinfrastructure in the state.• Agro-based industry •The Government of Rajasthan is promoting• Gems and jewellerydevelopment of several SEZs across the state for• Marblesectors such as gems and jewellery, handicrafts, IT,electronics and textiles. 18 19. STATE ECONOMY AND SOCIO-ECONOMIC PROFILERajasthanNovember 2010 Wheat, rapeseed, mustard and soybean are the key agricultural products •In 2008-09, the total production of the top eightAnnual production incrops of the state was over 12.0 million tonnes.Crop 2008-09(„000 tonnes) •Wheat is the major crop of Rajasthan, with anWheat*5,827 .0annual production of 5.8 million tonnes. It is Rapeseed and mustard* 2,754 .0followed by rapeseed and mustard (2.8 milliontonnes) and soy bean (1.0 million tonnes). Soybean*1,034.0 Cotton*920.0 •The other key crops of the state are cotton, guarGuar seed* 750.0seed, sugarcane, potatoes and rice. Sugarcane414.0 •In 2007-08, Rajasthan was among India‟s threePotatoes 92.4largest producers of rapeseed and mustard,Rice* 36 .0soybean and coarse cereal. Onions 23.5 Arhar* 18.0 Source: CMIE, *As of 2007-0819 20. STATE ECONOMY AND SOCIO-ECONOMIC PROFILERajasthanNovember 2010 Rajasthan‟s exports trends •Rajasthan‟s exports increased at a CAGR of Annual exports growth trends (%)about 19.5 per cent between 2001-02 and2008-09E2008-2009.-25.1 2007-08-19.2 2006-07141.0 •The state‟s major exports include textiles,2005-0633.5handloom, handicrafts, gems and jewellery, 2004-05 15.9minerals and auto components.2003-0423.0 2002-03 39.5 •In order to boost exports from Rajasthan, the2001-027.1State Government is laying emphasis on 2000-01 16.2developing export promotion industrial parks(EPIP).-50.00.050.0 100.0 150.0E: Estimated •“Expocity Jaipur”, which serves as an Source: Capital Marketsinternational habitat and convention centre, hasbeen developed by Jaipur Trade Expo CentrePrivate Limited. It is spread over an area of26,400 sq m and houses multi-utility homes,state-of-the-art business centres, entertainmentzones, etc. 20 21. STATE ECONOMY AND SOCIO-ECONOMIC PROFILERajasthanNovember 2010 Investments and FDI inflows •According to the Reserve Bank of India, FDI Break up of investments by sectorinflows from April 2000 to May 2010 3.3% 1.8%amounted to US$ 470 million. Electricity 4.5%Construction •As of March 2010, outstanding investment5.1% Machineryin the state was US$ 53.6 billion.33.3% Services13.6% •Electricity accounted for over 33 per cent Miningof the state‟s total outstanding investmentNon-metallicfollowed by construction.mineral products18.7%Chemicals19.8% Others Others include chemicals, metals & metal products, food & beverages, textiles and irrigation Source: CMIE, as of March 201021 22. RAJASTHAN November 2010Contents Advantage Rajasthan State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Rajasthan22 23. INFRASTRUCTURE STATUSRajasthanNovember 2010 Roads … (1/2) •As of March 2010, Rajasthan had 5,585 km of Road typeRoad length (km)National Highways, 11,758 km of State Highwaysand 7,673 km of major district roads.National Highways 5,585 State Highways 11,758 •The road density in the state has increased from54.6 km per 100 sq. km in 2008-09 to 54.9 km per District roads7,673100 sq. km in 2009-2010. Source: Ministry of Road Transport & Highways, 2008- 09, Economic Review of Rajasthan, 2009-2010 •Under various schemes such as the Missing Linkproject and the Central Road Fund, new roads arebeing constructed to link all villages in the state.23 24. INFRASTRUCTURE STATUSRajasthan November 2010 Roads … (2/2) •In 2009-2010, 1,300 villages were connectedunder the Pradhan Mantri Gram Sarak Yojana(PMGSY). •The Rajasthan Mega Highways Project forimprovement and maintenance of 1,053 km ofroad is underway with an investment of US$ 326million. •As of March 2010, about US$ 316.9 million hadbeen spent and 1,045.7 km of road had beenconstructed.This project is being implemented byRoad Infrastructure Development Company ofRajasthan (RIDCOR).Source: Maps of India 24 25. INFRASTRUCTURE STATUSRajasthan November 2010 Railways •As of March 2008, Rajasthan had a total railwaynetwork spanning 5,683 km, of which 3,885.4 km(68.3 per cent) was covered by broad gauge. •The railway route length per 1,000 sq. km ofgeographical area was 16.6 km, as of March2008. •Important routes in the state are Jodhpur-Marwar, Jodhpur-Jaisalmer, Lalgarh-Kolayat andLalgarh-Merta Road station. •The Indian Railways also runs famous luxurytourist trains – Palace on Wheels and Heritageon Wheels – that connect some of theimportant tourist destinations of Rajasthan withDelhi and Agra (in Uttar Pradesh).Source: Maps of India 25 26. INFRASTRUCTURE STATUSRajasthan November 2010 Airports •The state has a fully operationalinternational airport at Jaipur, with flights toDubai, Sharjah, Bangkok and Singapore. •Domestic airports are located at Jodhpur,Udaipur, Jaisalmer, Bikaner and Kota withregular flights from New Delhi, Mumbai,Kolkata, Hyderabad, Bangalore andAhmedabad. •An air-cargo complex at Jaipur, and inlandcontainer depots (ICD) at Jaipur, Jodhpur,Bhilwara and Bhiwadi facilitate trade withinand outside India.International airportDomestic airport 26 27. INFRASTRUCTURE STATUSRajasthanNovember 2010 Telecom Telecom infrastructure (2010) •As of June 2010, Rajasthan had 25.5 millionGSM subscribers. GSM cellular subscribers: 25,487,398 Internet/broadband subscribers: 195,118^ •According to estimates by the TelecomPost offices: 10,316^Regulatory Authority of India, there were 33.7 Telephone exchanges: 2,334^million wireless subscribers and 1.5 millionwire-line subscribers in Rajasthan, as of MarchCustomer service centres: 284^2010.Wireless subscribers: 33,740,879 Wireline subscribers: 1,525,214 •The state had 195,118 Internet/broadbandsubscribers in 2009. Sources: Economic Review of Rajasthan 2009-2010, Cellular Operators Association of India, Telecom Regulatory Authority of India •As of 2009, the state has about 10,316 post^As of 2009offices and 2,334 telephone exchanges with284 customer service centres. Major telecom operators in Rajasthan • Bharat Sanchar Nigam Limited (BSNL) • Bharti Airtel • Tata Teleservices • Reliance Communications • Vodafone Essar • Etisalat DB Telecom • IDEA Cellular Services27 28. INFRASTRUCTURE STATUSRajasthan November 2010 Power … (1/2) •As of March 2010, Rajasthan had a total installedInstalled power capacity (MW)power generation capacity of 7,768.5 MW 9,000.0comprising 4,827.0 MW (62.0 per cent) under7,607.1 7,768.5 8,000.0state utilities, 1,910.6 (24.7per cent) under6,426.2 7,000.0central and 1,030.9 MW (13.3 per cent) under 5,967.9 6,242.9 6,000.0the private sector. 5,000.0 4,000.0 •The capacity owned by the state utilities3,000.0comprised about 64 per cent of coal-based2,000.0power plants, 11 per cent of gas-based power 1,000.0plants and 25 per cent of hydro-power plants. - 2005-062006-072007-08 2008-09 2009-10 •The private sector controlled capacity is basedon renewable energy sources, which are Source: Central Electricity Authorityregulated by the Ministry of New and RenewableEnergy. •Renewable energy sources such as the windpower and the biomass are being activelypromoted by the State Government.28 29. INFRASTRUCTURE STATUSRajasthan November 2010 Power … (2/2) •Raj West Power Limited, a wholly-owned subsidiary of JSW Energy Limited, is setting up a 1,080 MW(eight units of 135 MW each) lignite-based pit head power plant in the Barmer district. The estimatedproject cost is US$ 1.1 billion. •As of March 31, 2010 38,336 villages have been electrified and about 950,000 wells have been energisedunder the Rural Electrification Programme. •The Rajasthan State Electricity Board, formed in 1957, was restructured in 2000 to form the followingcompanies:SegmentName of companyPower generation Rajasthan Rajya Vidyut Utpadan Nigam LimitedPowerRajasthan Rajya Vidyut Prasaran Nigam LimitedtransmissionPower distribution Jaipur Vidyut Vitaran Nigam Limited Ajmer Vidyut Vitaran Nigam Limited Jodhpur Vidyut Vitaran Nigam Limited 29 30. INFRASTRUCTURE STATUSRajasthan November 2010 Urban infrastructure •Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 14 projects costing US$ 280.4million have been sanctioned for the cities of Jaipur, Ajmer and Pushkar. •The projects have been sanctioned for completion between 2007-08 and 2009-2010.The target areas ofdevelopment are solid waste management, storm water drainage, water supply improvement, and busrapid transport system. •In addition, Rajasthan Urban Infrastructure Development Project (RUIDP) has been sanctioned by theGovernment of Rajasthan with loan assistance from the Asian Development Bank (ADB). The townscovered under the project are Ajmer, Bikaner, Jaipur, Jodhpur, Kota and Udaipur. The key areas ofdevelopment under this project are water supply, sewerage, drainage, roads and solid-waste management.Sources: JNNURM, Ministry of Urban Development, http://www.ruidp.gov.in 30 31. INFRASTRUCTURE STATUSRajasthanNovember 2010 Key public private partnership projectsProject costProject nameSectorPPP type Stage (US$ million)Gurgaon-Kotputli-Jaipur roadRoads BOT-Toll363.9ConstructionMahapura (near Jaipur)-Kishangarh roadRoads BOT-Toll140.0In operationDeoli-Kota road Roads BOT-Toll131.8ConstructionPalanpur-Swaroopganj road Roads BOT-Annuity 108.2ConstructionMahua-Jaipur road Roads BOT-Toll105.0ConstructionNarmada road Urban development-77.8Under biddingBharatpur-Mahua roadRoads BOT-Toll 54.3ConstructionReuse of recycled-water-tertiary- treatmentUrban developmentBOOT43.5Under biddingwater plantJalmahel tourism project Tourism BOOT43.4ConstructionAgra-Bharatpur (NH-11) road Roads BOT-Toll 42.3ConstructionSource: www.pppindiadatabase.comBOT: Build-operate-transfer, BOOT: Build-own-operate-transfer, EOI: Expression of interest31 32. INFRASTRUCTURE STATUSRajasthan November 2010 Education sector •The state has a literacy rate of 60.4 per centRajasthan‟s primary education statisticsaccording to Census 2001; the male literacy ratewas 75.7 per cent and the female literacy rate was Lower primary^: 57,369Schools (No) Higher primary*: 54,15143.9 per cent.High schools^: 14,100 •The state‟s school infrastructure consists of 57,369Pupil-teacher ratio^ 28:1lower primary, 54,151 higher primary and 14,100 Net-enrolment ratio inhigh schools. primary schools^ 99.5Source: Economic Review of Rajasthan, 2009-2010; Department of •Rajasthan has made significant progress in the fieldEducation and School Literacy Flash Statistics, 2008-09of higher education from 2007-08 onwards. There ^As of 2008-09are 1,050 colleges in the state, including 80 *As of 2009-2010engineering colleges, nine medical colleges and 12dental colleges. Government medical institutes in Rajasthan •As of 2009-2010, there are 134 industrial training• Jawaharlal Nehru Medical College, Ajmerinstitutes (ITIs) (including eight for women) with• R N T Medical College,Udaipur20,036 seats in the public sector and 712 ITIs with80,792 seats in the private sector; they provide• Sardar Patel Medical College, Bikanervocational training.• SMS Medical College, Jaipur• Geetanjali Medical College and Hospital, Udaipur •There are 26 government polytechnic colleges• Jhalawar Medical College, Jhalawarincluding seven women polytechnic colleges, with a• Government Medical College, Kotacapacity of 4,540 students. 32 33. INFRASTRUCTURE STATUSRajasthanNovember 2010 Health infrastructure •Rajasthan has a three-tier health infrastructure Health indicators as of 2008comprising primary health centres, health units,community health centres and sub-centres.Population served per medical4,369 institution^ •A number of initiatives such as the ChiefPopulation served per hospital bed^1,372Minister‟s „Jeevan Raksha Scheme‟ and the WorldBirth rate* 27.5Bank assisted „Rajasthan Health System Death rate*6.8Development Project‟ have been taken up toimprove the healthcare facilities of the state.Infant mortality rate**63 Life expectancy at birth (years)^ Male62.2Health infrastructureFemale62.8• Government hospitals: 127 Sources: Ministry of Health and Family Welfare, Sample Registration• Community health centres: 368System, 2008, Economic Survey 2009-2010• Primary health centres: 1,541^As of 2006-07 *Per thousand persons• Sub-centres: 11,487 **Per thousand live births• Beds in government medical institutions: 43,864 Source: Economic Review of Rajasthan, 2009-201033 34. INFRASTRUCTURE STATUSRajasthan November 2010 Cultural infrastructure •Cricket, polo and aero-sports such as parasailing,Jawahar Kala Kendra, Jaipurparagliding are the popular sports in Rajasthan. • House of museums: Displays ethnic art pieces emitting Rajasthani folk culture. •The state has various district associationsoperating under the purview of the Rajasthan • House of theaters: Plays with high literary value areCricket Association. staged here. • Library: Has books and magazines, along with a record •Most important stadiums of the state include of the forthcoming and past cultural events and exhibitions.Sawai Mansingh Stadium, Chaugan Stadium, PratapStadium, Mansarovar Stadium (Jaipur).• Arts gallery: Displays arts and crafts created by well known artists. •Golf is another popular sport in the state; water• Studio: Exhibits paintings and sculptures by well known artists.sports are an upcoming area. • Hostel: Residential facilities •In addition, Rajasthan offers various adventureactivities including camel safari, horse safari, jeepsafari and elephant safaris. •Key cultural centres in Rajasthan include JawaharKala Kendra and Radha Krishan Cultural andConvention Center in Jaipur, Bharatiya Lok KalaMandal and Meera Kala Mandir in Udaipur, andDesert Cultural Centre in Jaisalmer.34 35. INFRASTRUCTURE STATUSRajasthanNovember 2010 Industrial infrastructure…(1/2)Infrastructure Primary industryDetailsRIICO is developing theme parks with a special set of infrastructure and facilitiesfor establishing industries in line with the designated theme. It has established aTheme parks Multi-industrysatellite earth station in the Sitapura IT park of Jaipur along with the SoftwareTechnology Parks of India (STPI).EPIPs have been set up at Sitapura (Jaipur), Neemrana (Alwar) and BoranadaExport promotion(Jodhpur). The EPIP in Jaipur is among the largest export parks in Northern India.industrial parksMulti-productThe units operating here have export orders accounting for, at least, 33 per cent(EPIP)of their total turnover.The state is developing SEZs for industrial growth; as of July 2010, formal approvalhad been given to eight SEZs, in-principle approval had been given to 11 SEZs andthere were seven notified SEZs. A multi-product SEZ is being developed bySEZsMulti-productMahindra World City (Jaipur) Limited, a joint venture of Mahindra Gesco Limitedand RIICO Limited. This public private partnership initiative envisages aninvestment of about US$ 241.1 million.A state-of-the-art special economic zone has been developed by Mahindra andMahindra with an investment of US$ 244 million. It has attracted many domesticSEZ for IT ITinvestors such as Infosys and Wipro as well as substantial investment from foreigninvestors.Inland ContainerFor ease of movement of cargo, ICDs have been set up at Jaipur, Jodhpur, BhiwadiLogisticsDepot (ICD) and Bhilwara.A spices park is proposed to be set up at Ramganj Mandi for processing, packagingSpices parkFood processingand export of spices (especially coriander) from Rajasthan. The park will be set upin an area of 30 acres at a total cost of around US$ 3 million.35 36. INFRASTRUCTURE STATUSRajasthanNovember 2010 Industrial infrastructure…(2/2)Infrastructure Primary industryDetailsFootwear Design A FDDI is proposed to be set up at Jodhpur at an estimated cost of around US$and Development Footwear22 million. This Institute will provide specialised training in footwear technologyInstitute (FDDI)and design.A skill development centre will be set up by the Confederation of IndianIndustry(CII) in conjunction with the State Government to provide skills trainingSkill developmentfor the unemployed youth of Rajasthan. The location will be decided by the StatecentreGovernment in conjunction with CII. Alwar and Jaipur are two of the locationsbeing considered.IndustrialAn industrial infrastructure up-gradation centre will be set up, possibly along theinfrastructure up-Delhi-Mumbai Industrial Corridor (DMIC). A detailed project report and thegradation centreexact location is being finalised by the State Government.36 37. INFRASTRUCTURE STATUSRajasthan November 2010 SEZs in Rajasthan … (1/2)Operational SEZs Company name or developer LocationPrimary industry Jaipur SEZJaipurGems and jewellery Jodhpur SEZ Jodhpur Handicrafts Mahindra Worldcity (Jaipur) Limited Kalwara village, Jaipur IT/ITeSNotified SEZs Company name or developer LocationPrimary industry Mahindra GescoJaipurIT/ITeS Khushkera Industrial Area, Somani Worsted Limited Bhiwadi Electronics hardware and software/ ITeS Mansarovar Industrial Jodhpur Handicraft Development Corporation Vaitka Jaipur SEZ Jaipur-Ajmer expressway IT/ITeS Textile (in-principle approval granted for RNB Infrastrucure Private Limited Bikaner woollen sector) Mahindra Worldcity (Jaipur) Limited JaipurLight engineering Mahindra Worldcity (Jaipur) Limited JaipurHandicrafts Source: sezindia.nic.in 37 38. INFRASTRUCTURE STATUSRajasthan November 2010 SEZs in Rajasthan … (2/2)SEZ with formal approvalsCompany name Location Primary industryGENPACTJaipur IT/ITeS SEZ with valid in-principal approvals Company name or developerLocationPrimary industry Rockman Projects Limited National Highway (NH)-8 JaipurGems and jewellery Omaxe LimitedAlwar districtMulti-product Ansal Properties and Infrastructure Limited Jaipur district, village Sangtera, Kotputli tehsil Multi-product Parsvnath Developers Limited Jaipur-Ajmer road, Jaipur Multi-product Adani Exports LimitedAlwar districtMulti-services Suncity Rajasthan SEZ Developer Pvt. Ltd.Neemrana, district AlwarMulti-product SRM Infrastructure Private Limited Alwar Multi-services Society for Innovative Education and Development (EMPI Vittal CentreNeemrana, district AlwarBuilding materials INNOPOLIS) DLF LimitedNear Bhiwadi, Alwar districtGems and jewellery P S Jaipur SEZ Developers Pvt. Ltd.Bhanpur Kala, Delhi-Jaipur road (on NH-8) Multi-product Arihant Infratech (India) Pvt. Ltd.Udaipur districtMulti-productSource: sezindia.nic.in38 39. INFRASTRUCTURE STATUSRajasthanNovember 2010 SEZs and industrial clusters … (1/2) Operational and notified SEZs Jaipur SEZ (Gems and jewellery)RNB Infrastructure Mahindra Worldcity Limited (IT/ITeS)Jodhpur SEZ(Handicrafts)Vaitka Jaipur SEZ Mahindra World city Limited (Handicrafts and light engineering)Mansarovar Industrial Development Corporation Mahindra Gesco Index (Jaipur)Operational SEZs Somani Worsted LimitedNotified SEZs39 40. INFRASTRUCTURE STATUSRajasthan November 2010 SEZs and industrial clusters … (2/2)Industrial clusters in RajasthanIndex Cement grade limestone Automotive Tourism IT and ITeS Handicraft, gems and jewellery Chemicals40 41. INFRASTRUCTURE STATUSRajasthanNovember 2010 Infrastructure investments •As of March 2010, over US$ 12.2 billion ofInvestmentsinvestments have been made towards improving Infrastructure type (US$ million)Rajasthan‟s infrastructure. Power*6,504.3 •About 53 per cent of the investments made in Roads 2,087.1infrastructure have been in the area of powerOil and gas 2,077.8(both generation and distribution).Airport 1,020.6 Coal and lignite 277.8 •Roads, oil and gas are the other key infrastructuresectors, attracting investments. Railway203.5 Total 12,171.1*Generation and distributionSource: CMIE, as of March 2010 41 42. RAJASTHAN November 2010Contents Advantage Rajasthan State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Rajasthan42 43. STATE POLICIES AND INCENTIVESRajasthan November 2010 Sector-specific policies … (1/12)The Rajasthan Investment Promotion Scheme, 2010 (RIPS-2010)Aim: To facilitate investment in establishment of new enterprise(s) and/or investments made by the existing enterprise(s) formodernisation/expansion/diversification. The scheme is valid until 2018.Key initiatives:• Subsidises and incentives for new units or those undergoing diversification/expansion, to attract investments.• Simplification of investment planning mechanism for investors by using the single-window mechanism.• Special emphasis to encourage investment in industries such as biotechnology, tourism and education.Key subsidies:• Maximum 50 per cent subsidy of the total taxes (Value Added Tax or Central State Tax or State Goods Service Tax) wheneverintroduced and deposited into the government exchequer. Additional subsidy to the extent of 10 per cent of the said tax whichhave become due and have been deposited into the government exchequer will be allowed to women entrepreneur with disability.• Employment generation subsidy for new enterprise and project for common social cause, modernisation/expansion/diversification,sick industrial enterprise for its revival – US$ 210 per employee per year of completed service for general category, US$ 253 peremployee per year of completed service for women with disability. Total amount of subsidy shall not exceed 20 per cent of theamount of taxes deposited by the enterprise.43 44. STATE POLICIES AND INCENTIVESRajasthanNovember 2010 Sector-specific policies … (2/12) Rajasthan State Environment Policy, 2010Aim: To conserve and enhance environmental resources, assure environmental sustainability of key economic sectors, improveenvironmental governance and build capacity.Key initiatives:• To ensure availability of water in the state where the supply is lesser than the demand.• To reduce water contamination.• To protect forest areas and biodiversity.• To use renewable energy to attain energy efficiency.• To conserve flora and fauna.• To manage tourist arrivals, tourist destinations and tourist operations as the sustainability of tourism hinges on the quality andavailability of natural resources it is dependant on.• A climate change agenda has been prepared for the state to take forward the provisions of the National Action Plan on ClimateChange.• A State Environment Mission has been formulated to assure implementation of this policy. 44 45. STATE POLICIES AND INCENTIVESRajasthanNovember 2010 Sector-specific policies … (3/12) The Rajasthan Micro, Small and Medium Enterprises Development Assistance Scheme, 2008Aim: To make the state‟s MSMEs globally competitive.All MSMEs of the state having acknowledgement of entrepreneurs Memorandum-I and II are eligible for the benefit under thisscheme, subject to fulfillment of certain conditions.Key thrust: To develop and support MSMEs in increasing capacity and quality for supplying to domestic and export markets.Key incentives:• RIICO to provide land at 50 per cent of the prevailing district level committee (DLC) rates.• The State Government to provide 50 per cent of the capital cost for establishment of common effluent-treatment plants (CETP).• Reimbursement of expenses incurred towards filing, sharing patent, ISO certification.• Establishment of national laboratories by providing land at 50 per cent of DLC rates and part of capital cost.• To get at least 10,000 artisans credit cards issued per year from different banks in the next five years.• RIICO to develop separate areas for MSME with 24-hour uninterrupted power supply and enabling infrastructure.• Encouragement of private sector investment for setting up industrial parks by providing a level playing field vis-à-vis RIICO.• Exemption from entry tax for inputs (raw material, processing and packaging material, except fuel).• Exemption of 75 per cent from electricity duty to the units located in rural areas.• Khadi and Village Industries Board (KVIB)/ Khadi and Village Industries Commission (KVIC) registered units to continue with pre-VAT tax structure. 45 46. STATE POLICIES AND INCENTIVESRajasthanNovember 2010 Sector-specific policies … (4/12) Ayush Healthcare facilities, 2008Aim: To promote private investment in healthcare facilities offered by the Indian system of medicine; policy to remain in force untilDecember 2013.Key initiatives:• To promote private sector investment in education, research institutes and hospitals in the area of traditional Indian medicine.• To develop super specialty facilities for the Indian system of medicine to ensure delivery of quality health care at reasonable costs.• To promote public-private participation in the health sector.• To develop standards for infrastructure and operation and create a regulatory body with supportive role.Key incentives:• Exemption from duty on captive power generation as per RIPS-2010 for a period of seven years; 50 per cent exemption fromstamp duty and land conversion charges.• Land at concession rates to new institutes, investing a minimum of US$ 1.0 million for colleges, US$ 500,000 for hospital andspecialty centre, US$ 1.0 million for pharmacy and US$ 0.1 million for 50-bed hospitals.46 47. STATE POLICIES AND INCENTIVESRajasthan November 2010 Sector-specific policies … (5/12)Tourism Unit Policy, 2007Aim: This policy enhances the scope of the Hotel Policy, 2006, by including all other categories of hotels (heritage hotels and othertourism units, e.g., health spas, golf academy and golf course) under its purview.Key incentives:• A land bank with information of all land available will be made available online; minimum and maximum areas have been prescribedfor land to be auctioned from the land bank.• Minimum special reserve price (MSP) for five-star hotels and other tourism units fixed at less than 50 per cent of the commercialreserve price. For the budget, three-star and four-star units, MSP ranges from 10 per cent to 45 per cent.• Under Rule-7 of the „Rajasthan Land Revenue (conversion of agricultural land for non-agricultural purpose in rural areas) Rules2007‟, a provision has been added for exempting payment of conversion charges for investors/developers of hotels or any othertourism unit on the land.• A provision has been added to the „Rajasthan Municipal Corporation (land utilisation conversion) Rules 2000‟ according to whichheritage property owners would not have to pay 40 per cent of residential reserve price for conversion of the property into aheritage hotel provided that the property has a minimum of 10 rooms.• The floor area ratio (FAR) of existing hotels increased from 1.7 to two, to allow construction of an additional floor.• All concessions available in the RIPS-2010, shall also be available to all tourism units. 47 48. STATE POLICIES AND INCENTIVESRajasthan November 2010 Sector-specific policies … (6/12) IT and ITeS Policy, 2007Aim: To create and expand economic opportunities in the knowledge economy, attracting investments to the state and enhancingemployment opportunities.Key initiatives:• Strengthening information and communication technology (ICT) infrastructure for e-governance.• Developing e-governance framework for charting strategic growth plans and formulating appropriate policy measures.• Promoting public private partnerships in e-governance.• Implementing structured business process re-engineering (BPR) in all the key departments.• Formulating proper framework and guidelines for maintenance, accreditation and updating of various state department websites.• Promoting economic development of the state through investments in IT and ITeS sector.• Making IT available for the masses by promoting computer education, creating talent pool for the ICT industry, generatingemployment, taking it to rural areas and providing adequate incentives.• The local IT industry shall be encouraged to develop and offer the necessary IT products and services relevant to the tourismindustry.• Electronic tourism kiosks to be set up at important locations for the benefit of tourists coming to the state. 48 49. STATE POLICIES AND INCENTIVESRajasthan November 2010 Sector-specific policies … (7/12)IT and ITeS Policy 2007 (continued)Key incentives:• Land and office infrastructure incentives:• Facilitation for the creation of infrastructure such as high-quality office space serviced with all basic amenities of high-speedtelecommunication links, uninterrupted power supply and central air-conditioning.• Assistance in procuring land and change in land use as in master plan, wherever feasible, to the private IT park and IT unitdevelopers.• 50 per cent exemption from stamp duty to eligible IT/ITeS companies as per provisions of Rajasthan Investment PromotionScheme (RIPS-2010) or as amended from time-to-time.• Various exemptions related to labour laws including:• Permission to work 24 hours a day, seven days a week.• Closing an establishment and granting of a weekly holiday as per company requirements, provided that every individual hasat least one day off every week and a compulsory day off in lieu of working on bank holidays.• Flexi-time operations since working hours could be decided as per company needs and three shift operation is allowed.• Permission to engage female employees between 8 p.m. and 6 a.m., provided special arrangement is made for ensuringtheir security.• 50 per cent exemption from the payment of electricity duty for seven years, as per provisions under RIPS-2010 or as amendedfrom time-to-time, for new IT units.• Electricity tariff for IT and ITeS units as per low-tension industry category.49 50. STATE POLICIES AND INCENTIVESRajasthan November 2010 Sector-specific policies … (8/12) IT and ITeS Policy 2007 (continued)Key incentives:• All the fiscal incentives as per the Rajasthan Investment Promotion Policy, 2003 or as amended from time to time; VAT on allproducts rationalised to be at par with the minimum floor rate of 4 per cent.• Special package of incentives to the micro, small and medium enterprises (MSMEs) to promote their growth. Some of the keyincentives are:• Reservation of land for preferred allotment to MSMEs in the IT parks.• Support to NASSCOM, Software Technology Parks of India (STPI) or any such organisation in the creation of a library formaking available information on trends in technology, market intelligence, research reports and analysis, etc., by contributingUS$ 20,000 per annum, for developing the small and medium enterprises sector.• Subsidy up to US$ 50,000, at the rate of US$ 217 per employee, to the first five IT/ITeS companies investing in the state anddirectly employing more than 50 employees in IT or 100 employees in ITeS sector; such employment should exist for a periodof at least two years for persons domiciled in Rajasthan.• Incentives linked to mega projects: Projects creating direct employment of more than 500 people in the case of IT industry or1,000 people in ITeS industries to be defined as mega projects; such projects are entitled to a special package of incentive ofUS$ 217 per employee. 50 51. STATE POLICIES AND INCENTIVESRajasthan November 2010 Sector-specific policies … (9/12)Policy to Promote Private Investment in Healthcare Facilities 2006Aim: To encourage private investment in healthcare facilities and promote Rajasthan as a destination for medical tourism; policy toremain in force until December 2010.Key initiatives:• To promote private sector investment in medical and healthcare institutions, medical and dental colleges and support units such asdiagnostic centres, blood banks and paramedical training institutes.• To develop complementary and alternative medicine centres.• To develop super specialty healthcare institutions.• To ensure delivery of quality healthcare at reasonable costs.• To promote development of centres of excellence for medical care.• To develop standards for infrastructure and operations.• To create a regulatory body with supportive role.Key incentives:• Rebate related to land allotment (ranging up to 75 per cent); it is linked to size of investment, geographical location and hospital inareas of tourist importance.• 50 per cent exemption from the payment of electricity duty for seven years• 50 per cent exemption from the payment of stamp duty and land conversion rate.51 52. STATE POLICIES AND INCENTIVESRajasthanNovember 2010 Sector-specific policies … (10/12)Policy for Promoting Generation of Electricity through Non-Conventional Energy Sources, 2004Aim: To encourage investment in non-conventional sources for generation of electricity.Key incentives:• 50 per cent exemption from electricity duty for seven years.• 50 per cent exemption from stamp duty.• 50 per cent exemption from conversion charge.• Allotment of land on 10 per cent of district-level committee (DLC) rate.• Exemption from payment of entry tax.• Exemption from merit order dispatch regulations.• Wheeling and banking facilities for power generated.• Interest subsidy and wage/employment subsidy on new investments. 52 53. STATE POLICIES AND INCENTIVESRajasthanNovember 2010 Sector-specific policies … (11/12) Biotech Scheme, 2004Aim: To facilitate the growth of biotech industries and development of clean bio-technologies.Key thrust areas:• Positioning the state as an attractive destination for development and growth of biotechnology industries.• Creating and continuously upgrading biotechnology infrastructure in the state through government and/or public privatepartnerships.• Creating and developing human resources in biotechnology.Key incentives:• Land allotment for setting up of various biotechnology and bio-informatics industries, including projects covered under modernbiotechnology, is made at the rate of development charges prevailing in the area.• The land rebate, by way of reimbursement, is allowed after the required minimum fixed investment has actually been made on theallotted plot within the period stipulated for investment in the package.53 54. STATE POLICIES AND INCENTIVESRajasthanNovember 2010 Sector-specific policies … (12/12) Tourism Policy, 2001Aim: To ensure optimum utilisation of rich tourism resources of the state to generate employment, especially, in the rural areas.Key initiatives:• Optimum utilisation of rich tourist resources of the state in order to attract maximum number of domestic and internationaltourists.• To facilitate the growth of tourism in the state and to further involve the private sector in the development of tourism inRajasthan.• To make tourism a peoples industry in the state.• Preservation of rich natural habitat and bio-diversity, historical architectural and cultural heritage of Rajasthan; special emphasison conservation of historical monuments in Rajasthan.• Increase employment opportunities, especially, for unemployed rural youth. 54 55. RAJASTHAN November 2010Contents Advantage Rajasthan State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Rajasthan Company logos cited in this section are registered trademarks of the respective companies55 56. BUSINESS OPPORTUNITIESRajasthan November 2010 Cement •Rajasthan has huge reserves of cement-grade and Key playerssteel-melting-shop (SMS) grade limestone. SMSgrade limestone of the Jaisalmer district is supplied • ACCto various steel plants in the country. • Ambuja Cement Limited• Birla Corporation Limited •As of 2009-2010, 14 major cement plants and twomedium cement plants are in operation with a• Mangalam Cement Limitedtotal installed capacity of about 20.3 million tonnes • Grasim Industries Limitedper annum (MTPA). • Shree Cement Limited• Binani Cement Limited• Laxmi Engineers Limited• JK Lakshmi Cement Limited 56 57. BUSINESS OPPORTUNITIESRajasthan November 2010 Cement – company profiles … (1/2)ACC Limited • ACC is the largest cement producer in India; its plant at Bundi, Rajasthan, has a productioncapacity of 1.5 MTPA.• The company is also the largest manufacturer of ready-mix concrete in India.Ambuja• Ambuja Cements Limited has cement plants in Rajasthan, Maharashtra, Gujarat, HimachalCements Limited Pradesh, Punjab, Chhattisgarh and West Bengal.• The total cement capacity of the company is 18.5 MTPA.• The production facility in Rajasthan has a capacity of 2 MTPA.Birla Corporation • Birla Corporation Limited is the flagship company of the M.P. Birla group.Limited• The company owns seven cement plants, located in West Bengal, Madhya Pradesh, Rajasthan andUttar Pradesh, with a total annual manufacturing capacity of 5.8 MTPA.• The company is planning a 1.2 million tonne expansion at its Chanderia plant in Rajasthan.Mangalam Cement Limited • Mangalam Cement Limited is principally engaged in the development, manufacture anddistribution of portland cement and clinker in India.• The company has limestone deposits at Morak, ideal for the manufacturing portland cement.• It has a plant in Kota.• The company‟s sister firm Mangalam Timber is getting merged with itself.Shree Cement• Shree Cement manufactures its products under the Bangur Cement brand name.• The company‟s manufacturing facilities are located at Beawar, 185 km from Jaipur.• The company‟s grinding unit is located at Khush Khera (Alwar).• Besides, the company has a a wide network of 28 sales offices, 1,193 dealers and 4,000 retailers.57 58. BUSINESS OPPORTUNITIESRajasthanNovember 2010 Cement – company profiles … (2/2)Grasim Industries • Grasim Industries Limited is a flagship company of the Aditya Birla Group.Limited • Grasim, along with its subsidiary UltraTech Cement had a capacity of 48.8 MTPA as of March 2010; itis a leading cement player in India; has 1.5 MTPA cement unit at Shambhupura in Rajasthan.• Grasim is setting up a 4.5 MTPA greenfield plant at Kotputli and another 4.4 MTPA plant atShambhupura, both in Rajasthan.• Grasim Industries Limited has hived off its cement business as Samruddhi Cement for a merger withanother group company, UltraTech Cement.Binani Cement • Binani Cement Limited (BCL) is a subsidiary of Binani Industries Limited (BIL).Limited • The company‟s manufacturing plant is located at Binanigarm, Sirohi, Rajasthan.• The Binanigram facility has an upgraded capacity of 6 MTPA.Laxmi Engineers • Laxmi Engineers Works s a cement manufacturer with headquarters in Rajasthan; the company beganWorks operations in 1991.• The companys mini-cement plant has the production capacity of 50 tonnes per day.• The group companies manufacture cut stones and marbles, polishing machines and tiles forconstruction.JK Lakshmi Cement • JK Lakshmi Cement Limited has a state-of-the-art plant at Jaykaypuram, Sirohi, Rajasthan.Limited • With the capacity expansion and further commissioning of a split-location grinding unit in Gujarat, thecombined capacity of the company is 4.75 MTPA.• JK Lakshmi Cement is the first cement producer of Northern India to be awarded an ISO 9002 and beaccredited by National Accreditation Board for Testing and Calibrating Laboratories (NABL),Department of Science and Technology, Government of India, for its lab quality management systems.58 59. BUSINESS OPPORTUNITIESRajasthan November 2010 Mining and mineral processing industry … (1/2) •Rajasthan is among the largest mineral producingProspective locations for metalsstates in India. Around 79 varieties of mineralsare available in the state and 58 minerals are Copper Udaipur, Sirohi, Raisamand,produced on a commercial scale. Important Alwar, Jhunjhunuminerals are silver, phosphate fluoride, rockLead, zinc, copper Banswaraphosphate, copper, zinc, gypsum, clay, granite, Gold Banswaramarble, sandstone, dolomite, calcite, emeraldsand garnets. Gold, silver Banswara Copper, gold, platinum Ajmer •The state has about 210 million tonnes ofidentified reserves of lead-zinc ore with 1.5 percent lead and zinc, and 639 million tonnes ofcopper ore reserves containing 0.8 to 1.2 percent copper.59 60. BUSINESS OPPORTUNITIESRajasthan November 2010 Mining and mineral processing industry … (2/2) •Base metals and noble metals: Rajasthan has immensepotential for mining base metals and noble metals in a beltKey players in mining industrythat extends over an area of about 58,000 sq km; it covers• Hindustan Zinc LimitedAlwar in the North to Banswara and Dungarpur in the • Hindustan Copper LimitedSouth and passes through the districts of Jhunjhunu, Jaipur,Ajmer, Bhilwara, Rajsamand, Sirohi and Udaipur.Key players in ceramic industry •Dimensional stones: The state has substantial reserves ofdifferent varieties of dimensional stones such as marble, • Kajaria Ceramics Limitedgranite, sandstone and slate with tremendous potential for• Liberty Whiteware Limitedexports forward linkages with the construction industry.• Jaipur Ceramics Private Limited •Lignite: Rajasthan has more than 4,000 million tonnes oflignite reserves in the districts of Barmer, Bikaner and Key players in marble industryNagaur. Lignite is being produced in Barmer and Matasukh• Elegant Marble and Granite Incarea of Nagaur. In recent years, some lignite blocks in three• Maadhav Marbles and Granites Limiteddistricts have been allotted for setting up thermal powerplants. •Ceramics: The availability of clay and feldspar in Rajasthanmakes it an excellent location for ceramic-related industry(e.g., white-ware, floorings and bone-china). 60 61. BUSINESS OPPORTUNITIESRajasthanNovember 2010 Mining – company profilesHindustan Zinc• HZL is a part of the Vedanta Resources Group and has four mines in Rajasthan.Limited (HZL) • Rampura Agucha mine is a zinc mine with a production capacity of 6 MTPA. In 2009-2010, RampuraAgucha produced 612.9 Kilo Tonnes (KT) of contained zinc and 55.10 KT of contained lead. RampuraAgucha is also one of the lowest cost zinc producer globally.• Sindesar Khurd mine has reserves and resources base of over 60 million tonnes. Sindesar Khurd hasannual ore production capacity of 0.5 MTPA and achieved a production level of 19.8 KT of containedzinc and 8.0 KT of contained lead in 2009-2010. The company plans to increase the current oreproduction capacity of Sindesar Khurd from 0.5 MTPA to 1.50 MTPA.• Rajpura Dariba mine has annual ore production capacity of 0.9 million tonnes and achieved aproduction level of 21.9 KT of contained zinc and 5.4 KT of contained lead in 2009-2010. Bulkconcentrate production at Rajpura Dariba has resulted in significant recovery improvements in zinc,lead and silver.Hindustan Copper• Hindustan Copper Limited is a public sector undertaking under the administrative control of theLimited Ministry of Mines.• It is a vertically-integrated copper producing company with facilities of mining, beneficiation, smelting,refining and casting of refined copper metal into downstream-saleable products.• HCL has four operating units of mines and plants, one of which is the Khetri Copper Complex(KCC) at Khetrinagar in Rajasthan.Rajasthan State Mines • RSMML is a public sector enterprise of the Government of Rajasthan, primarily, engaged in mining andand Minerals Limitedmarketing of industrial minerals.(RSMML) • The company has various strategic business units (SBUs) in Rajasthan; the rock phosphate SBU islocated at Udaipur, gypsum SBU at Bikaner, limestone SBU at Jodhpur and lignite SBU at Jaipur.• Going forward, RSMML is targeting cost effective technological innovations in mining and diversifyinginto mineral-based downstream projects. 61 62. BUSINESS OPPORTUNITIESRajasthanNovember 2010 Ceramic – company profilesKajaria Ceramics Limited • Kajaria Ceramics is the largest manufacturer of ceramic tiles in India. The company has two manufacturing plants, with a total annual capacity of 21 million sq m. • The company exports tiles to more than 20 countries around the globe. • Kajaria Ceramics has a manufacturing plant at Gailpur, Rajasthan, with an annual capacity of 14.1 million sq m. • Kajaria has several certifications, including ISO 9001 (for quality management), ISO 14001 (for environment management), OHSAS 18001 (for safety and health management) and SA-8000 (for commitment to society). Liberty WhitewareLimited• Liberty Whiteware Limited has a sanitary-ware unit, located at Neemrana in Rajasthan. • The company has an annual production capacity of 500,000 pieces per annum.Jaipur Ceramics Private• Jaipur Ceramics has a ceramics plant on the outskirts of Jaipur, with a bone china capacity of 1,500Limitedtonnes per annum. • The company has a workforce of about 700 people, including highly-skilled and semi-skilled employees. • It also has an in-house facility for making kiln furniture and can produce tiles and pillars for captive use; the capacity is about 18 tonnes per month.62 63. BUSINESS OPPORTUNITIESRajasthan November 2010 Marble – company profilesElegant Marble and • Elegant Marble and Granite Inc., markets and processes marble and granite and offers over 84 coloursGranite Inc. in the Indian market. • The company‟s total installed capacity for processing marble and granite is 2.5 million sq ft. • It also imports marble from Italy, France, Norway, Spain, Greece and Nepal.Maadhav Marbles• Maadhav Marbles and Granites Limited exports its products to over 20 countries including the US,and Granites Germany, Holland, Singapore and Australia.Limited• It has an installed capacity of 751,338 sq m per annum for processing granite tiles. • The company has acquired two wind-turbine generators (each of 1.25 MW) and has diversified into power generation.63 64. BUSINESS OPPORTUNITIESRajasthan November 2010Automotive •The Alwar and Jaipur districts are close to major Key playersauto production hubs of the country such asNoida (Uttar Pradesh), Gurgaon and Dharuhera• Amtek Auto Limited(Haryana), offering excellent advantage for setting • Ashok Leylandup of auto and auto ancillary units.• TAFE •Nearly 100 units are currently functional in the• Hi-Tech Gears LimitedBhiwadi region of Alwar.• National Engineering Industries (NBC)• Autolite India Limited •A special auto and engineering zone has also been • Honda Siel Cars India Limiteddeveloped in the Pathredi Industrial Area andanother special zone is being planned in Bhiwadi. • Caparo Fasteners• Federal Mogul Goetze• Ocap Chassis Parts Pvt Limited• MICO• Continental Engines 64 65. BUSINESS OPPORTUNITIESRajasthan November 2010 Automotive – company profiles … (1/4)Amtek Auto Limited • Amtek Auto Limited is a flagship company of the Amtek Group; it is a leading Indian supplier of auto components with operations in forgings, machining and sub-assemblies. • The company‟s plants are located at Alwar and Bhiwadi. • It supplies over 300 varieties of components and assemblies to leading domestic and global vehicle manufacturers. • The company‟s machining capacity is 40 million parts and its forging capacity is 225,000 tonnes per annum.Ashok Leyland• Ashok Leyland is a flagship company of the Hinduja Group; it is a leading manufacturer of commercial vehicles in India. • The company‟s manufacturing facilities are located at Alwar (Rajasthan), besides Ennore, Ambattur and Hosur in Tamil Nadu and Bhandara in Maharashtra. • In July 2007, the company entered into a joint venture with the Alteams Group, Finland, to manufacture high pressure die-castings and aluminium products, predominantly, for the automotive and telecommunications sectors.Tractors and Farm • TAFE is in the tractor manufacturing business; its subsidiary, TAFE Motors and Tractors Limited, has anEquipment Limitedengine plant at Alwar and transmissions plant at Parwanoo.(TAFE) • The diesel engine plant at Alwar, Rajasthan, produces a range of air-cooled and water-cooled diesel engines of up to 80 HP.65 66. BUSINESS OPPORTUNITIESRajasthan November 2010 Automotive – company profiles … (2/4) • Hi-Tech Gears Limited was incorporated as a public limited company in 1986; the company has aHi-Tech Gears Limitedplant in Bhiwadi; it has ISO 9002 and QS 2000 certifications. • The company produces precision forging, transmission gears, and shaft and timing gears. • Getrag Hi-Tech Gears India Private Limited, a joint venture of GETRAG Corporation and Hi-Tech Gears Limited is engaged in production of engine timing gears; the unit employs around 70 people. • National Engineering Industries Limited, Jaipur, was founded in the year 1946 for manufacture ofNational Engineering bearing under the name of National Bearing Company Limited (NBC).Industries Limited • The company has manufacturing facilities at Jaipur and Gunsi (Newai). • It produces ball bearings, steel balls, tapered roller bearings, cylindrical roller bearings and axle boxes for railway rolling stock. • The company manufactures nearly 3.8 million bearings per month in over 500 different sizes ranging from 6 mm bore to 1,300 mm outer diameter. The company has facilities to manufacture bearings up to 2,000 mm outer diameter. • Autolite India Limited was established in 1970, with an objective to design, manufacture and marketAutolite India Limited automotive lighting products, globally; the current product range includes head lamps, auxiliary lamps, work lamps, horns, halogen bulbs and incandescent bulbs. • The company‟s manufacturing plant is located at Jaipur. • It serves as an original equipment manufacturer (OEM) for the domestic, European and Japanese vehicle manufacturers in India including Eicher, Komatsu and FIAT. • It has ISO 9001: 2000 accreditation. 66 67. BUSINESS OPPORTUNITIESRajasthanNovember 2010 Automotive – company profiles … (3/4) • HSCI was incorporated in December 1995 as a joint venture between Honda Motor Co., Japan and SielHonda Siel CarsLimited, a Siddharth Shriram group company; the total manufacturing capacity of the company is 100,000 cars.India Limited (HSCI) • In Rajasthan, the company has a plant located at Tapakura. As of 2009, the total investment made by the company in Rajasthan plant was US$ 130 million; further investment of US$ 86 million is planned, which will translate in to capacity addition of 60,000 units of cars. • Caparo Fasteners started its Indian operation in 2005 from Chopanki (Rajasthan); it is one of India‟sCaparo Fasteners leading manufacturers of high tensile fasteners. • Caparo Fasteners India supplies fasteners to leading OEMs including Ashok Leyland, Asia Motor Works, Eicher Motors, Ford, General Motors, HMSI, Tata Motors. • The company has a capacity to produce 26,000 MT of fasteners per annum. • It is backed by complete technical support from the group company, Caparo Atlas Fastenings, UK, a leading manufacturer of fasteners, catering to the European automobile industry, for the last 100 years.Federal-Mogul• Federal-Mogul Goetze (India) Limited was established in 1954 as a joint venture between Escorts andGoetze (India) Goetze-Werke of Germany.Limited • It is the largest manufacturer of pistons and piston rings in India. • The company has production facilities at Bhiwadi which is accredited with TS 16949, ISO14001 and OHSAS 18001.Ocap Chassis Parts • Ocap, founded in 1975, has operations in Italy in Valperga, Feletto, Busano and Oglianico. Pvt Limited • The company started its operations as a spare manufacturer for steering and suspension parts for the aftermarket. At present, the company is a supplier to automotive, truck and agricultural manufacturers such as Audi, Bentley, Lamborghini, Maserati and Renault. • OCAP Chassis India is located at RIICO industrial area, Bhiwadi, (Alwar). 67 68. BUSINESS OPPORTUNITIESRajasthanNovember 2010 Automotive – company profiles … (4/4)Motor Industries • MICO Inc., is a manufacturer of pumps, which are used in commercial vehicles to follow gas emissionCompany (MICO),requirements.Inc• The company has a manufacturing plant at Jaipur with a capacity of 10 million units per annum for pumps that comply with Euro-II and Euro-III norms. • MICO has planned to double the capacity of its Jaipur plant. Post-expansion, these distribution pumps will be made Euro-IV compliant.Continental Engines• Continental Engines is a part of Bakshi Group, a three decades old Indian multinational company with interests in auto components, engines and business process outsourcing (BPO) sectors. • It is engaged in the manufacture of automotive components for domestic and global auto majors. • The company‟s product range includes fully-assembled cylinder heads (multi-cylinder heads and single- cylinder heads), crank cases, compressor mounting brackets, inlet manifolds, clutch housings, transmission cases, flywheel housings, etc. 68 69. BUSINESS OPPORTUNITIESRajasthan November 2010 Textiles •Rajasthan has a leading position in the productionType of textiles in Rajasthanof polyester viscose yarn and synthetic suitingmaterial as well as processing of low-cost, low- • Block printing-Sanganer, Jaipur, Bagruweight fabric (at Pali, Balotra, Sanganer and Bagru).• Bandhani-Jodhpur, Pali, Jaipur, Udaipur and Nathdwara •Jaipur is also a well-known centre for • Zari/Zardosimanufacturing garments, primarily for exports. • Quilting •Bhilwara has emerged as Indias largestmanufacturer of suiting fabrics and yarn. Key players •Availability of raw material and trained labour has• Rajasthan Spinning and Weaving Millspromoted the growth of textile industry andLimiteddrove many textile units to locate in the state. • JK Synthetics • Banswara Syntex Limited •With a network of backward and forward linkage,• Shree Rajasthan Syntex LimitedRajasthan‟s textile industry offers significantcompetitive advantage. • Shriram Rayons • Bhilwara Spinners Limited • Ginni International Limited • Modern Threads69 70. BUSINESS OPPORTUNITIESRajasthanNovember 2010 Textiles – company profiles … (1/2)Rajasthan Spinning • RSWM produces yarn, fabric, garments and denim; it is one of the largest producers and exporters ofand Weaving Millspolyester-viscose-blended yarn in the country.Limited (RSWM) • The company operates around 3,60,000 spindles and produces 100,000 MT of yarn per year. • It has plants in Banswara, Mordi, Kharagram and Rishabdev.JK Synthetics• JK Synthetics produces a wide range of synthetic fibres including nylon yarn and high-tenacity yarn for industrial application, e.g., fishing industry, tyre cord, polyester-filament yarn, polyester staple fibre and tows and acrylic staple fibre. • The plant is located at Kota in Rajasthan.Banwara Syntex • Banswara Syntex Limited was incorporated in the year 1976; the company manufactures fabric,Limitedreadymade garments, made-ups and worsted suiting. • The company‟s manufacturing facility is located in Banswara; it has a spinning capacity of 133,588 ring spindles including 14,400 spindles for worsted-yarn spinning and 576 air-jet spindles. It also has 194 shuttles-less looms, 12 air-jet-jacquard looms and six stenters, with a processing capacity of 4 million meters per month. • The company also has a readymade garment production plant at Daman and Surat (Gujarat), with installed capacity of 0.23 million pieces of trousers and 10,000 pieces of jackets per month.Shree Rajasthan• Shree Rajasthan Syntex Limited is a manufacturer of synthetic-yarn including acrylic, polyester, viscoseSyntex Limited and polypropylene multi-filament yarn. • The plant is located at Udaipur in Rajasthan. 70 71. BUSINESS OPPORTUNITIESRajasthanNovember 2010 Textiles – company profiles … (2/2)Shriram Rayons• Shriram Rayons, a part of DCM Shriram Industrial Group, is among the countrys major manufacturersof high-grade rayon tyre cord; it has nylon and rayon conversion facilities catering to the needs of thedomestic and international markets.• The manufacturing plant is located at Kota; the technology partners of the company are Beunit FibresInc, USA and Chemtex Inc, USA.Bhilwara Spinners • Bhilwara Spinners Limited, a part of the LNJ Bhilwara Group, is a manufacturer of cotton-syntheticLimited blended yarns of various counts and blends; the 18,496 spindles manufacturing facility is located atBhilwara.• The company also manufactures various value-added products such as polyester/acrylic, mod-acrylicflame-retardant yarn, sewing thread, slub yarn, viscose-carpet yarn, linen yarn, and products suitable forother uses including upholstery, tapestry and industrial fabrics.Ginni International • Ginni International Limited has a unit at the RIICO Industrial Area, Neemrana, Alwar.Limited• Established in 1996, it is a 100 percent export-oriented unit, engaged in weaving, spinning and knittingactivities.• The installed capacity of the plant is around 32,256 spindles; it also has a capacity to produce world-class quality woven fabrics with 54 picanol air-jet looms; the company has ISO certification since 1997.• It employs around 700 people.Modern Threads• Modern Threads is a unit of Modern Group; it is one of the largest synthetic yarn spinning plants inIndia, which a capacity of about 50,000 spindles.• It is engaged in manufacturing and marketing of a wide range of products including grey, dyed and fancyyarns made of polyester viscose.• In Rajasthan, they are located in village Raila in the Bhilwara district.71 72. BUSINESS OPPORTUNITIESRajasthan November 2010 IT sector •Rajasthan has a vast pool of trained professionals. Key playersMoreover, low cost of operations in well developedcities of the state makes them attractive locations for • InfosysIT and ITeS units.• Tech Mahindra• Genpact •IT parks with special infrastructure have been set up• Wipro Technologiesat Jaipur, Jodhpur, Kota and Alwar.• Nagarro72 73. BUSINESS OPPORTUNITIESRajasthanNovember 2010 IT and ITeS – company profiles … (1/2)Infosys• Infosys was set up in 1981; it is engaged in IT consulting, modular global sourcing, process re- engineering, and BPO services; the company has operations in Australia, China and US. It also has marketing and technological alliances with FileNet, IBM, Intel, Microsoft, Oracle, etc. The company recorded a turnover of US$ 4.8 billion in 2009-2010. • Infosys BPO, the BPO-services division of Infosys, has opened BPO campuses at the Mahindra Worldcity, Jaipur, Rajasthan. • The company has also launched various industry-specific programmes in Rajasthan where it collaborates with universities in the state to improve the BPO-specific skill sets.Tech Mahindra• Tech Mahindra is a global systems integrator and business transformation consulting firm, focused on the communications industry. • Tech Mahindra provides a wide variety of services ranging from IT strategy and consulting to system integration, design, application development, implementation, maintenance and product engineering. Tech Mahindra has accreditations such as ISO 9001:2000 certification, SEI-CMM level 5 assessments and is also CMMI level 5 certified for software development processes. • The company has set up two software development centres in Jaipur, Rajasthan.Genpact• Formerly known as GE Capital International Services, Genpact was set up in India in 1997. • The company provides a wide range of business process, technology and knowledge services in finance and accounting, collections and customer relations, insurance, procurement and supply chain, analytics, software, IT-infrastructure • It recorded a turnover of US$ 1.5 billion in 2010. • The company employs about 43,300 professionals in total and over 3,000 people in the Jaipur facility. 73 74. BUSINESS OPPORTUNITIESRajasthan November 2010 IT and ITeS – company profiles … (2/2)Wipro Technologies • Wipro Technologies was established in 1945; it is engaged in IT services, product engineering, technology infrastructure services, BPO and other consulting solutions. It also provides services such as application development, deployment and maintenance, business intelligence and customer relationship management. Based in Bengaluru, the company has 54 development centres and 30 offices spread across India, North America, Middle East and Europe. • It recorded a turnover of US$ 6.0 billion in 2009-2010. • Wipro Technologies has set up a campus at the Mahindra World City in Jaipur. The company is developing its campus in two phases; the first phase – spread across 25 acres, with a seating capacity of 1,000 employees – is operational.Nagarro• Nagarro provides outsourced software development services to companies ranging from early stage start-ups to the global 50 market leaders, helping them achieve their strategic goals. • The company has signed an MoU with the Mahindra World City for developing a five-acre site in the Mahindra World City SEZ. 74 75. BUSINESS OPPORTUNITIESRajasthanNovember 2010 Chemicals •The key chemicals produced in Rajasthan include fertilisers, caustic soda and pesticides; the principalindustrial complexes for chemicals are at Jaipur, Kota, Udaipur and Bhilwara.Chambal Fertilisers andChemicals Limited • CFCL manufactures and distributes urea, agri-inputs, fertilisers, plant protection chemicals, seeds(CFCL)and biofertilisers.• The company has two nitrogenous fertiliser plants near Kota in Rajasthan with a capacity of over1.7 MTPA of urea; it is among the largest fertiliser complexes in the private sector in India.P I Industries Limited• P I Industries mainly produces organo-phosphorous insecticides.• The company has its plant at Udaipur in Rajasthan, producing liquid insecticides, minerals and alliedproducts, polymers and solid insecticides.DCM Shriram Industries• DCM Shriram Industries Limited is a diversified group with operations in sugar, alcohol, organic andinorganic chemicals, drug intermediates, rayon tyre cord, shipping containers and processed cottonLimitedyarn.75 76. BUSINESS OPPORTUNITIESRajasthan November 2010 Steel •Rajasthan‟s steel industry comprises re-rolling and stainless steel units located, mainly, in Jodhpur, Alwarand Jaipur. Most of the re-rolling units belong to the small scale sector.Asian Alloys • AAL manufactures steel ingots and castings.Limited (AAL)• Its units are located at Bhiwadi in Rajasthan as well as in Punjab. • The company‟s products are mainly used in the paper and rubber industries.Kamdhenu Ispat • Kamdhenu is a manufacturer of international quality steel bars and paints.Limited • The steel-bars unit is located at Bhiwadi; the paint division is in Alwar.PSL Limited• PSL manufactures steel pipes. • The companys products include protective coatings for steel pipes, epoxy coatings for reinforcement bars, epoxy powder paint and galvalum range of aluminium sacrificial anodes. • It is involved in iron-ore processing.76 77. RAJASTHAN November 2010Contents Advantage Rajasthan State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Rajasthan77 78. DOING BUSINESS IN RAJASTHANRajasthan November 2010 Key approvals required … (1/2)Approvals and Respective departments of state Estimated time clearances requiredIndustrial licence15 daysSponsorship for raw-materials and Industrial Commissionerate and State30 daysinputsRevenue Department30 days at the district-levelLand allotment60 days for state government approval30 days for district-level clearanceIncentivesBureau of Investment Promotion45 days for state-level clearanceSanction of loanRajasthan Financial Corporation (RFC) 60 daysSite approval and environmentalDepartment of Environment 90 daysclearanceRajasthan State Pollution Control Green category: 30 daysAdequacy certificateBoard Red category: 45 daysNo-objection certificate78 79. DOING BUSINESS IN RAJASTHANRajasthanNovember 2010 Key approvals required … (2/2) Service/facility Concerned agencyTimelines Load up to 60 HP: issue of demand notice in 21 days Release of connection: 30 days from demand notice Load from 60 HP-300 KW: demand notice in 30 days Jaipur Vidyut Vitran Nigam Ltd* Release of connection: 60 days from issue of demand noticeRelease of power Ajmer Vidyut Vitran Nigam Ltd^connection Load 300-3,000 KW: issue of demand notice in 60 days Jodhpur Vidyut Vitran Nigam Ltd Release of connection: 75 days from issue of demand notice Load above 3,000 KW: issue of demand notice 60 days Release of connection: 90 days from issue of demand notice*Responsible for 12 districts of Rajasthan, namely Jaipur, Dausa, Alwar, Bharatpur, Dholpur, Kota, Bundi, Baran, Jhalawar, Sawaimadhopur, Tonk andKaroli.^Responsible for 11 districts of Rajasthan, namely Ajmer, Bhilwara, Nagaur, Sikar, Jhunjhunu, Udaipur, Banswara,Chittorgarh, Rajsamand, Doongarpur and Pratapgarh.79 80. DOING BUSINESS IN RAJASTHANRajasthan November 2010 Cost of doing businessCost parameter Cost estimatesSourceIndustrial land US$ 75 to US$ 151 Industry sources(per sq ft)Labour cost US$ 2.1 to US$ 2.5Industry sources(per man year)Hotel costs (five-star)US$ 95 to US$ 385 per room per nightLeading hotels in the stateOffice space rental US$ 0.22 to US$ 2.5 per month Industry sources(per sq ft) US$ 0.05 to US$ 0.28 per sq ft per monthResidential space rental Industry sources (rates depend on the type of structure and location) Industrial use (Jaipur): US 7.6 cents to US 8.7 cents Jaipur Vidyut Vitran Nigam LimitedPower cost (per kWh) Fixed charge: US$ 0.76 to US$ 1.96 per HP (Jaipur Discom) Commercial and industrial: 0 to15,000 kl: US 24 centsPublic Health EngineeringCost of water (per kl) 15,000 to 40,000 kl: US 35 centsDepartment, Rajasthan 40,000 kl and above: US 50 cents HP: horsepower; kl: kilolitre80 81. DOING BUSINESS IN RAJASTHANRajasthan November 2010 Single-window clearance mechanism •District Single Window ClearanceCommittee for each district in the stateUnder theNodalwhich is chaired by the Deputychairmanship ofAgencyCommissioner, with senior-most officers Board ofof concerned departments in the district InfrastructureBureau ofas members.Chief DevelopmentInvestment Minister ofand InvestmentPromotion Rajasthan •Empowered Committee chaired by Chief (BIDI)Secretary to Government of Rajasthanand with Principal Secretaries of State LevelDistrictconcerned state departments as Empowered ChiefIndustrymembers. Committee SecretaryCentre –(SLEC)district level •State Board with the Chief Minister ofRajasthan as its Chairman and ministersDistrict Levelof state departments as its members.Empowered Deputy Commissioner Committee 81 82. DOING BUSINESS IN RAJASTHANRajasthanNovember 2010 Key investment promotion offices Bureau of Investment Promotion• BIP is the State Governments nodal agency for attracting foreign direct investment(BIP)(FDI) and non-resident Indian (NRI) investments. BIP functions as a single-window agency for clearing all medium and large scale investments. • BIP assists in investing in Rajasthan in many ways such as identifying investment opportunities, providing access to information that is critical to setting up of project, translation of investment possibilities into concrete investment proposals, site-selection activities and obtaining infrastructural facilities. It helps in interfacing with government departments for required clearances.Rajasthan State Industrial • RIICO is the sole agency in the state that develops land for the industrial growth. ItDevelopment and Investment provides financial assistance and other vital infrastructural facilities for industries.Corporation (RIICO) Rajasthan Financial Corporation • RFC provides medium and long-term loans for new industrial units in the SME sector. It(RFC)also assists in planning a balanced development of industries in the state.Project Development Corporation• The corporation identifies commercially viable infrastructure projects, prepares detailed feasibility and investment reports and offers to the private sector for implementation.82 83. DOING BUSINESS IN RAJASTHANRajasthanNovember 2010Contact listKey agencyContact informationUdyog Bhawan, Tilak MargJaipur - 302005, RajasthanPhone: 91-141-2227 274, 2227 812, 2227 713Bureau of Investment Promotion (BIP)Fax: 91-141- 2227 506E-mail: [email protected]: http://www.investrajasthan.com/Udyog Bhawan, Tilak MargJaipur, RajasthanRajasthan State Industrial Development and Investment Phone: 91-141-5113 200 /5113 208/5113 211Corporation (RIICO) E-mail: [email protected]: www.riico.comUdyog Bhawan, Tilak MargJaipur - 302005, RajasthanRajasthan Financial Corporation (RFC) Phone: 91-141-2385 522Fax: 91-141-2385 503E-mail: [email protected] Floor, LIC Jeevan Nidhi BuildingNear Ambedkar Circle,Bhawani Singh Road,Project Development Corporation Jaipur - 302005, RajasthanPhone: 91-141-2747012-14Fax: 91-141-2747045E-mail: [email protected] 84. DOING BUSINESS IN RAJASTHANRajasthan November 2010 Annexure … (1/3)Socio-economic classification (SEC) of urban and rural households – urban gridCertificate course,School up to fourSchool up to fiveGraduate/postGraduate/postbut no formal years/ literate,to nine years professionalSSC/HSCschooling graduategraduategraduate Illiterate but not general Education/occupationUnskilled workers E2E2 E1 DD D DSkilled workers E2E1 DCCB2B2Petty traders E2 D DCCB2B2Shop owners DD CB2B1A2A2Entrepreneurs: employee noneDC B2 B1 A2 A2A1Entrepreneurs: employee < 10C B2 B2 B1 A2 A1A1Entrepreneurs: employee > 10B1B1 A2 A2 A1 A1A1Self-employed professionals DD DB2B1A2A1Clerical/salesman DD DC B2B1B1Supervisory level DD CC B2B1A2Officers/executives: junior CC CB2B1A2A2Officer/executive: middle/seniorB1B1 B1 B1 A2 A1A1Source: Market Research Society of India 84 85. DOING BUSINESS IN RAJASTHANRajasthan November 2010 Annexure … (2/3)Socio-economic classification (SEC) of urban and rural households – rural gridType of house Education Pucca Semi puccaKucchaIlliterate R4 R4R4Literate but no formal schoolR3 R4R4Up to fourth standardR3 R3R4Fifth to ninth standardR3 R3R4SSC/HSCR2 R3R3Some college but not graduateR1 R2R3Graduate / post graduate R1 R2R3(general)Graduate / post graduate R1 R2R3(professional)Source: Market Research Society of India 85 86. DOING BUSINESS IN RAJASTHANRajasthan November 2010 Annexure … (3/3)Exchange rates YearINR equivalent of one US$ 2000 46.6 2001 48.3 2002 48.0 2003 45.6 2004 43.7 2005 45.2 2006 45.0 2007 42.0 2008 40.2 2009 46.0 2010 47.4Average for the year 86 87. RAJASTHANNovember 2010DISCLAIMERIndia Brand Equity Foundation (“IBEF”) engaged presentation to ensure that the information is accurateICRA Management Consulting Services Limited (IMaCS)to the best of IMaCS‟s and IBEF‟s knowledge and belief, theto prepare this presentation and the same has been content is not to be construed in any manner whatsoeverprepared by IMaCS in consultation with IBEF. as a substitute for professional advice.All rights reserved. All copyright in this presentation andIMaCS and IBEF neither recommend nor endorse anyrelated works is solely and exclusively owned by IBEF. 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