PUNJAB LAND OF FIVE RIVERS

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2 Executive Summary. 3 Advantage State... 4 Punjab Vision... 5 Punjab An Introduction. 6 Annual Budget Infrastructure Status.20 Business Opportunities...40 Doing Business in Punjab...55 State Acts and Policies

3 EXECUTIVE SUMMARY Rising focus on renewable energy The state government of Punjab is continuously focusing on the usage of renewable sources of energy. As of October 2015, MW was contributed by the renewable energy as compared to a contribution of MW in June As per Punjab Investor Summit 2015, the total investment potential for renewable energy is expected to reach US$ 6 billion by 2022 with a target capacity of 5,400 MW. Textile hub Punjab has emerged as a key hub for textile-based industries including yarn, readymade garments and hosiery. With the development of apparel parks, favourable textile policies and other incentives for the creation of textile infrastructure, the state offers opportunities for investment. Best infrastructure facilities Punjab has been ranked first in India in terms of infrastructure facilities offered. Punjab s road, rail and air transport network, connectivity, construction of bridges and infrastructure facilities are among the best. Strong agriculture production Punjab has strong agriculture base with the huge production of principal crops such as rice, maize, sugarcane and barley. In , the production of sugarcane was 7,200 thousand metric tonnes, which is estimated to be around 8,640 thousand metric tonnes during Source: Department of Agriculture, Government of Punjab, TechSci Research, Central Electricity Authority 3

4 ADVANTAGE PUNJAB Fertile and Growing productive demand land The confluence of five rivers makes Punjab s agricultural land rich and productive. Approximately 82 per cent of the state s land is under cultivation compared with the national average of 40 per cent. Punjab is one of the largest wheat and rice producers in India. It is also a leading exporter of rice, including the well known Basmati variety. High economic growth The state s GSDP increased at a compound annual growth rate (CAGR) of per cent between and The state provides investment opportunities in sectors such as textiles, agro-based industries, IT & ITeS, automotive and auto components, sports goods and light engineering goods. Advantage Punjab Policy and fiscal incentives In October 2015, the Government of Punjab announced plans to draft a Make in India policy for the growth of the industrial sector. Punjab offers industries with a wide range of fiscal and policy incentives under the Industrial Policy In order to improve the current cropping pattern and restructure the incentives, the state government introduced Agriculture Policy for Punjab Strong infrastructure Punjab has a well developed social and industrial infrastructure. Its transport network is one of the best in India, with easy access to key markets such as the Delhi-NCR region. Punjab has witnessed impressive growth in the number of clusters and hubs, with the establishment of several PPPs. In the budget, the Government of Punjab announced plans to invest US$ 1, million to provide water supply to all the urban local bodies in the state. PPP: Public-Private Partnership, GSDP - Gross State Domestic Product 4

5 PUNJAB VISION 2022 Connect all major towns by developing four-lane and sixlane highways. Establish Bus Rapid Transport Systems (BRTS) in all major cities in the state. Provide quality education to all people, even in rural areas, by building one school after every 2 km. Aim to provide education with practical knowledge through workshops and industrial visits. Establish PHCs and specialty hospitals covering wider areas. Establish medical and nursing institutions to produce qualified healthcare professionals. Computerise government departments and adopt e- governance to enhance the ease of doing business. Attract investments from agrobased and service sector industries. Health Investment promotion Transport Agriculture Vision 2022 Education Infrastructure Industries Environment Encourage SMEs through adequate financing and policy initiatives to increase employment. Set up an SEZ in each region and develop backward and border areas. Check the diversion of agriculture/forest land for urbanisation and industrialisation. Ensure that industries adopt eco-friendly technologies and rainwater harvesting. Diversify into other crops after considering their global market demand. Adopt technology in all areas of agriculture and encourage organic farming. Adopt a mix of energy sources for power generation and at least one captive nuclear power plant. Build international airports in each of the regions of Majha, Malwa and Doaba. Source: Confederation of Indian Industry SME: Small and Medium Enterprises, PHS: Primary Health Centres 5

6 PUNJAB FACT FILE The state has three major seasons summer (April-June), rainy season (July-September) and winter (October-March). Due to the presence of large rivers, most of the state is a fertile plain. The state has three major rivers flowing through it: Ravi, Beas and Satluj. Parameters Capital Punjab Chandigarh Geographical area (sq km) 50,362 Administrative districts (No) 22 Population density (persons per sq km) 551 Total population (million) 27.7 The state is bordered by the Pakistani province of Punjab to its west, Jammu & Kashmir in the north, Himachal Pradesh in the northeast, Haryana in the south and southeast, and Rajasthan in the southwest. The most commonly spoken language of the state is Punjabi. Hindi and English are the other widely used languages. Male population (million) 14.6 Female population (million) 13.1 Sex ratio (females per 1,000 males) 893 Literacy rate (%) 76.7 Amritsar, Ludhiana, Jalandhar, Bhatinda, Mohali, Pathankot and Patiala are some of the major cities in the state. Source: Government of Punjab, Census

7 PUNJAB IN FIGURES (1/2) Parameter Punjab All states Source Economy GSDP as a percentage of all states GSDP GSDP growth rate (%) Per capita GSDP (US$) 1,867 1, Directorate of Economics & Statistics of Punjab, Central Statistics Office, TechSci Research Directorate of Economics & Statistics of Punjab, Central Statistics Office, TechSci Research Directorate of Economics & Statistics of Punjab, Central Statistics Office, TechSci Research Physical Infrastructure Installed power capacity (MW) 11, , Central Electricity Authority, as of November 2015 Wireless subscribers (No) 30,818,748 1,003,487,792 Internet subscribers (No) 12,680, ,420,000 National Highway length (km) 2, ,214 Telecom Regulatory Authority of India, as of October 2015 Telecom Regulatory Authority of India, as of June 2015 NHAI & Road & Building Department, Government of India Airports (No) Airports Authority of India 7

8 PUNJAB IN FIGURES (2/2) Parameter Punjab All states Source Social Indicators Literacy rate (%) Census 2011 Birth rate (per 1,000 population) SRS Bulletin Ease of Doing Business FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, April 2000 to September 2015 Outstanding investments (US$ billion) ASSOCHAM INDIA Industrial Infrastructure PPP projects completed & operational (no) 37 1,382 DEA, Ministry of Finance, Government of India Operational SEZs (No) Ministry of Commerce & Industry, Department of Commerce PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System, 1 Includes Chandigarh, Punjab, Himachal Pradesh and Haryana 8

9 PUNJAB LAND OF FIVE RIVERS ECONOMIC SNAPSHOT GSDP Punjab s gross state domestic product (GSDP) was US$ billion at current prices in as against US$ 21.6 billion in GSDP of Punjab at current prices (in US$ billion) The state s GSDP increased at a compound annual growth rate (CAGR) of10.39 per cent between and CAGR 10.38% Source: Directorate of Economics & Statistics of Punjab, Central Statistics Office 9

10 ECONOMIC SNAPSHOT NSDP Punjab s net state domestic product (NSDP) at current prices was US$ billion in as against US$ 19.2 billion in Between and , NSDP increased at a CAGR of per cent. NSDP of Punjab at current prices (in US$ billion) CAGR 10.28% Source: Directorate of Economics & Statistics of Punjab, Central Statistics Office 10

11 PUNJAB LAND OF FIVE RIVERS ECONOMIC SNAPSHOT PER CAPITA GSDP The state s per capita GSDP at current prices was US$ 1,867.0 in , up from US$ in GSDP per capita of Punjab at current prices (in US$) Punjab s per capita GSDP expanded at a CAGR of 8.43 per cent between and CAGR 8.43% Source: Directorate of Economics & Statistics of Punjab, Central Statistics Office 11

12 ECONOMIC SNAPSHOT PER CAPITA NSDP Punjab s per capita NSDP at current prices was US$ 1,646 in compared with US$ in NSDP per capita of Punjab at current prices (in US$) The state s per capita NSDP grew at a CAGR of 8.34 per cent between and CAGR 8.34% Source: Directorate of Economics & Statistics of Punjab, Central Statistics Office 12

13 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP With a CAGR of 12.0 per cent, the tertiary sector has been the fastest growing among the three sectors primary, secondary and tertiary from to and is also the largest contributor to Punjab s economy, contributing per cent to the state s GSDP. The growth was driven by trade, hotels, real estate, finance, insurance, communications, transport and other services. GSDP composition by sector CAGR % The secondary sector rose at a CAGR of 9.8 per cent between and , driven by increasing manufacturing, construction and electricity as well as improved gas and water supply % 8.1% The primary sector witnessed a CAGR of 8.1 per cent between and Primary Secondary Tertiary Source: Directorate of Economics & Statistics of Punjab, Central Statistics Office 13

14 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION Punjab covers only 1.5 per cent of India s geographical area and is considered to be the largest producer of different agricultural commodities in the country. Punjab s fruit production was 1.74 million tonnes in Apples accounted for a majority of the share in the overall fruit production in the state. During , total vegetable production in the state was 4.06 million tonnes. Wheat is the major crop produced by the state, covering almost half of the cropped area. In , wheat production stood at million metric tonnes. During , Punjab accounted for 40.6 per cent share of wheat and 26.1 per cent share of rice procured by the Indian government for food security. Crop ( 000 metric tonnes) Targets ( 000 metric tonnes) Rice 11,280 10,620 Maize Bajra Groundnuts Sesamum Sugarcane 7,200 8,640 Cotton 1,654 1,852 Wheat 16,569 17,100 Barley Oilseeds Pulses Source: Department of Agriculture, Government of Punjab 14

15 ECONOMIC SNAPSHOT FDI INFLOWS AND INVESTMENTS According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI inflows 1 from April 2000 to September 2015 amounted to US$ 1,354 million. In , the outstanding investments stood at US$ billion. The services sector maintained the highest share of outstanding investments, accounting for about 39 per cent. It was followed by the electricity sector with a share of about 31 per cent and construction & real estate with about 23 per cent. Gurdaspur-Rupnagar is emerged as a dominant region in Punjab in terms of outstanding investment with 33 per cent share. Amritsar-Patiala is the second most attractive region in Punjab with 27 per cent share. Firozpur-Sangrur is recognized as third most lucrative region with 20 per cent share in overall outstanding investment in FDI equity inflows 1, to (US$ million) Break-up of outstanding investments by sector ( ) 23% 31% 47 6% 1% Service 39% Electricity Construction & real estate Manufacturing Irrigation Source: Assocham India (²) Source: Department of Industrial Policy & Promotion (DIPP), 1 Includes Chandigarh, Punjab, Himachal Pradesh and Haryana 2 From April 2015-September

16 ECONOMIC SNAPSHOT EXPORT TRENDS Readymade garments & hosiery and yarn & textiles account for a majority of the share in the overall exports of the state. Exports from Punjab (US$ billion) Rice and sports goods are the other major products that account for a significant share in Punjab s export basket. Rice accounts for 11.5 per cent share in the overall exports of the state Exports of pharmaceutical goods from the state accounted for 5.09 per cent share in total exports in The manufacturing exports from the state of Punjab accounted for 75 per cent of the total exports of the state with an overall exports value of US$ 4.52 billion. In addition, the engineering sector contributed 15 per cent to the total export value during In the Annual Plan , a new scheme of Assistance to States for Infrastructure Development for Exports (ASIDE) was announced. The scheme aimed at including the states and UTs in the exports effort by providing them with the required assistance to create enhanced and appropriate infrastructure for the growth of exports. The nodal agency for fulfilling the purpose of the ASIDE scheme in the state will be Punjab State Import & Export Corporation Source: Department of Industries and Commerce, Government of Punjab Funds received from Indian government for ASIDE Scheme (US$ million) Source: Annual Plan

17 ANNUAL BUDGET (1/2) Total expenditure for Budget is proposed to be US$ billion, which was US$ 9.36 billion in Sector Proposed budget (In US$ million) Agriculture Soil and water conservation Animal husbandry Food and civil supplies Rural development Water supply and sanitation Urban development 1, Irrigation Power Sector Proposed budget (In US$ million) Roads and bridges Transport Civil aviation 2.16 Education 1, Social security Welfare of SC's & BC's and minorities Sports 4.31 Justice laws & order Defense service welfare 7.06 Source: Finance Department, Government of Punjab 17

18 ANNUAL BUDGET (2/2) During , various new initiatives are planned by the Government of Punjab to encourage local art forms and enrich the cultural heritage of the state. In order to fulfil their commitment of bringing the Government at the Doorstep, 2,174 Unified Service Centres (Sewa Kendras) would be set up in urban and rural areas of the state to provide citizens with over 50 services at their doorsteps. In order to achieve this purpose, an amount of US$ million would be allocated by the government. The important schemes under the state s irrigation sector included: Allocation of US$ million and US$ million for relining of Rajasthan feeder and Sirhind feeder projects, respectively. These projects are slated for completion during US$ million was allocated for flood protection and anti-water logging measures. The new schemes announced in the Budget under urban development include: Mission for Development of 100 Smart Cities; Urban Rejuvenation Mission-500 Habitations; Sardar Patel Urban Housing Scheme. In order to reinforce the sports infrastructure in Punjab, the finance minister of Punjab announced construction of various multipurpose stadiums in all district headquarters of the state with an investment of US$ million. In addition, construction of a hockey stadium in Ferozepur for an investment of US$ 1.71 million is also proposed in the state s annual budget. In March 2015, the Government of Punjab also announced plans to accomplish affordable housing for citizens in urban region, under which 50,000 houses would be constructed within the next two years for EWS in alliance with HUDCO. Source: Punjab Budget

19 Annual Plan (AP) Approved outlay- sector wise (in US$ million) Sector Approved outlay Agriculture and allied services Rural development Irrigation & flood control Energy Industries & minerals As per the Annual Plan , the total approved outlay for the state is estimated to be US$ 3.51 billion. Out of the total approved outlay for the state, per cent is for social services sector and per cent is for the energy sector. An outlay of US$ 7.45 million has been estimated for the growth of science, technology and environmental sector in the state during Approved outlay (in US$ billion) 3.51 Transport Science, technology environment General economic services Social services General services Source: Annual Plan

20 PHYSICAL INFRASTRUCTURE ROADS Punjab is well connected to its four neighbouring states and the rest of India through 15 national highways (NH) which are 1, 1A, 10, 15, 20, 21, 22, 64, 70, 71, 72, 95, 103 A New, 503 Ext. New, 703 New 703A New & 754 New. In the budget, the state government proposed to invest US$ million for the development of road infrastructure in the state. Along with this investment, an amount of US$ million has been proposed by the government for the improvement of national highways. Source: Maps of India Road type Road length (km) Total Road Network 64,037 National highways 2, State highways 1,503 Rural roads 58,688 Major scheme wise allocations for the year US$ million for strengthening of rural roads US$ million for strengthening of 150 km of roads under Punjab State Road Sector project US$ million under NABARD Assisted Projects for widening of roads and construction of bridges US$ million for special repair of plan roads US$ million for high level bridges US$ million for Centre Road Fund for upgradation of existing road infrastructure US$ million for ROBs/RUBs. US$ 50.1 million under Pradhan Mantri Gram Sadak Yojna. Source: Ministry of Road Transport & Highways Source: State Budget

21 PHYSICAL INFRASTRUCTURE RAILWAYS The railways play a major role in the state, connecting major industrial units in the oil refining, cement, fertiliser, thermal power and manufacturing sectors to suppliers and markets. Punjab s railway network spans across 2,126 km and is considered to be more than two times that of the country s average rail density. It falls under the jurisdiction of Northern Railways that spreads across Punjab, Jammu & Kashmir, Haryana, Himachal Pradesh, Uttarakhand, Uttar Pradesh, Delhi and Chandigarh. The main inter-state railway routes are Amritsar-Ambala- Delhi, Sri Ganganagar-Ambala-Delhi, Ferozpur-Ludhiana- Ambala, Pathankot-Roopnagar-Fatehgarh Sahib and Sri Ganganagar-Bhatinda-Narwana. In March 2015, the state government of Punjab announced plans to establish a joint venture with Indian Railways. The purpose behind this joint venture is to enhance the planned rail projects in the state as well as to take up new projects, including setting up of ultra modern railway stations and placing new railway tracks. Source: Maps of India Source: Punjab Bureau of Investment Promotion 21

22 PHYSICAL INFRASTRUCTURE AIRPORTS (1/2) Punjab has three domestic airports in Chandigarh Bhatinda, Ludhiana and Pathankot and two international airports in Amritsar and SAS Nagar (Mohali). International flights operate from the Sri Guru Ram Dass Jee International Airport at Amritsar. In the Budget , a sum of US$ 2.16 million is allocated for the enhancement of various air terminals and aerodrome extensions. The status of the Chandigarh International Civil Air Terminal in Mohali was also announced in the budget, according to which construction of the first phase of the terminal has been completed and would be operational in the near future. The government announced approval of commencement of two civil commercial flights from Bhatinda s Indian Airforce Station Bhisiana. Source: Airport Authority of India, State Budget International airport Domestic airport 22

23 PHYSICAL INFRASTRUCTURE AIRPORTS (2/2) 7,831 5,685 Aircraft movement (nos.) 9,960 10,054 9,071 9,208 9,167 9,690 8,545 7,759 9,410 10,968 4,682 7,025 During , the Amritsar airport handled 859 tonnes of freight while the Chandigarh airport handled 5,065 tonnes of freight. During April 2015 and September 2015, the freight volume handled at these airports stood at 432 tonnes and 2,508 tonnes, respectively (¹) Amritsar Chandigarh Passenger traffic (million) In September, 2015, a new terminal at the Chandigarh airport was inaugurated for handling domestic as well as international flights. The new terminal is built to cater to 1,600 travellers and has an apron capacity of eight aircrafts (including cargo aircrafts) (¹) Amritsar Chandigarh Source: Airports Authority of India 1 April 2015-September

24 PHYSICAL INFRASTRUCTURE POWER (1/3) As of November 2015, Punjab had total installed power generation capacity of 11, MW. It consisted of 5, MW under state utilities, 2, MW under central utilities and 4, MW under the private sector. Of the total installed capacity, 7, MW was contributed by thermal power, 3, MW by hydropower, MW by renewable power and nuclear power contributed MW to the total capacity. Installed power capacity (MW) 8,354 7,019 7,056 7,509 11,255 The Punjab Energy Development Agency (PEDA) is the nodal organisation for renewable energy development in the state.. The total electricity consumption in Punjab during was 39,755 MKWH. The state government of Punjab has announced plans to install two thermal power plants with 660 MW capacity each in the state. Both plants are expected to be operational by the end of (¹) Source: Central Electricity Authority, 1 As of November 2015 Break-up of installed capacity by source of power generation ( ) 28% 4% 2% Thermal Power 66% Hydropower Renewable Power Nuclear Power Source: Central Electricity Authority 24

25 PHYSICAL INFRASTRUCTURE POWER (2/3) The state government of Punjab is continuously focusing on the usage of renewable sources of energy. Contribution of renewable energy to the total installed capacity increased from MW in June 2015 to MW in October Total investment potential for a target renewable energy generation capacity of 5,400 MW is projected to be US$ 6 billion by Renewable source of energy Target capacity in 2022 (in MW) Solar power 4,200 Biomass power (JPP) 300 Co-generation power 680 Micro hydel 200 Urban and industrial solid waste 20 The state government aims to achieve a target of 4,200 MW capacity additions in solar energy by Various solar projects to be undertaken by the Government of Punjab include: Ground mounted solar projects: Over the last two years, the capacity for these projects grew to 218 MW. Commissioning of 332 MW projects would be undertaken by In addition, 50,000 solar street lights would be installed within the next two years. Canal based solar projects: The state government has planned to manufacture 20 MW grid connected plants on canal tops. Setting up of roof top solar projects Source: Punjab Bureau of Investment Promotion 25

26 PHYSICAL INFRASTRUCTURE POWER (3/3) The Government of Punjab proposed plans of achieving 300 MW of power generation using biomass by In addition, the state government is also planning to set up biogas CNG projects in all districts of the state. In the budget, the state government of Punjab has proposed to invest US$ million for the improvement of power infrastructure in the state. Out of the overall allocated budget for power infrastructure, US$ million has been sanctioned for power transmission, whereas US$ million is for power generation and US$ million has been sanctioned for power distribution. The allocated budget for power distribution also included US$ million to be used for the Re-structured Accelerated Power Development Reforms Programme. Two important units of Rajpura Thermal Power Plant (700 MW) were commissioned by the state government in US$ 8.29 million was allocated by the finance minister of Punjab to provide 24 hour urban pattern power supply to the left out dhanis in the state. Source: State Budget

27 PHYSICAL INFRASTRUCTURE TELECOM According to the Telecom Regulatory Authority of India (TRAI), Punjab telecom circle had million wireless subscribers and 1.07 million wire-line subscribers, as of October The tele-density in the state was per cent, which is significantly higher than the national average of per cent, as of August As of May 2015, the state had 1,490 telephone exchanges. The state had 3,855 post offices as of May The number of telephones in the state as of March, 2015 was 1.1 million. During the same period, the number of mobile telephones in the state was million. Performance Status of NOFN project (As of Feb, 2015) Total GPS 12,949 GPS in Phase 1 6,034 Pipe laid (km) 645 Cable laid (km) 399 GPS for which cable laid 234 Telecom infrastructure- October 2015 Wireless subscribers 30,818,748 Wire-line subscribers 1,075,237 Internet subscribers 1 12,680,000 Post offices 2 3,855 Telephone exchanges 2 1,490 Major telecom operators in Punjab Bharat Sanchar Nigam Limited (BSNL) Bharti Airtel Idea Cellular Vodafone Essar Reliance Communications Tata Teleservices Aircel Limited Source: Telecom Regulatory Authority of India, India Post, Department of Telecommunications, 1 As of June 2015, 2 As of May

28 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE As of , Punjab ranked 8 th among the urbanised states in India, with 37 per cent urbanisation rate. In the budget, the state government announced plans to invest US$ 1, million to provide water supply, sewerage and sewage treatment plants in all the urban local bodies in the state. Under the Urban Infrastructure and Governance (UIG) programme, five additional projects have been sanctioned and are in the transition phase. Some of the key areas of development are roads and flyovers, water supply, sewerage and solid-waste management. In the budget, the state government of Punjab announced plans to invest US$ 6.63 million for the 19 border blocks of six districts for upgrading infrastructure related to education, health, agriculture and social infrastructure. As of August 2015, with an investment of US$ 1, million, about 37 PPP projects were approved in the state. Chandigarh The original planned city Chandigarh, the joint capital city of Haryana and Punjab, was developed as a planned city. It is also a union territory. Today, it has expanded in terms of industry as well as population. Chandigarh still remains a model for many other Indian cities in terms of civic amenities. It has one of the best electricity distribution systems in India. The Union Ministry of Power selected it as one of the few model distribution centres in the country. The Municipal Corporation of Chandigarh is responsible for its urban infrastructure facilities including water supply, sewerage, roads, slum development, fire service, environment, city beautification and house tax. Source: JNNURM; Ministry of Urban Development, Government of India; Department of Planning, Government of Punjab 28

29 DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS Project name Sector Total project cost (US$ million) Stage 5 Star hotel near Thermal Lake, Bhatinda Tourism 33.2 Under construction Ambala-Zirakpur Road Roads and bridges 49.4 Operation Biomass Power Project, Patiala Electricity generation (grid) 9.1 Under construction Development of Bhawanigarh-Nabha-Gobindgarh Road Project Roads and bridges 11.7 Under construction Development of Bus Terminal cum Commercial Complex at Mohali Urban public transport 33.2 Under construction Development of Bus Terminal cum Commercial Complex at Patiala Urban public transport 29.0 Under construction Development of Five Star Hotel at Bathinda Tourism 12.4 Others Development of Hoshiarpur - Phagwara Road Project Road Phase 2 Tranche III Development of land at Nabha House Roads and bridges Under construction Common infrastructure for industrial parks, SEZ 16.6 Under construction Development of Modern Bus Terminal at Amritsar Urban public transport 3.6 Operation Development of Sirhind-Morinda-Ropar Phase 2 Tranche III Project Roads and bridges Under construction High Level Bridge (Makhu) Roads and bridges 9.95 Under Construction Source: Department of Economic Affairs, Government of India 29

30 DEVELOPMENT PROJECTS: SEZs Operational SEZ Name/Developer Area Primary industry Ranbaxy Laboratories Ltd. Mohali Pharmaceuticals Quarkcity India Pvt. Ltd. Mohali IT/ITeS Formal approved SEZ Lark Projects Private Limited Mohali, Punjab Electronic hardware and software including ITeS Sukhm Infrastructure Pvt Ltd. Mohali IT Quarkcity India Pvt. Ltd. Mohali, Punjab IT Ranbaxy Laboratories Ltd. Mohali, Punjab Pharmaceuticals Notified SEZ Quarkcity India Pvt. Ltd. Mohali, Punjab IT Ranbaxy Laboratories Ltd. Mohali, Punjab Pharmaceuticals Source: Ministry of Commerce & Industry 30

31 SOCIAL INFRASTRUCTURE EDUCATION (1/3) Punjab has a literacy rate of 76.7 per cent; male literacy rate is 81.5 per cent and female literacy rate is 71.3 per cent. At 84.6 per cent, Hoshiarpur district has the highest literacy rate in Punjab. Literacy rate in Punjab s urban areas is 83.2 per cent and in rural areas is 71.4 per cent (based on the 2011 Census). The state had 111 engineering colleges and 193 polytechnic colleges as of September As of September 2015, the state had 14 universities. Panjab University is more than a 100 years old and is well regarded globally. The Punjab Agricultural University in Ludhiana is well known for its contribution to education, research and extension services in the field of agriculture. In Budget , the finance minister allocated US$ 3.32 million for the scheme of Strengthening of girls schools in the state, under which a total of 121 government girls high schools would be reinforced in the 144 community development blocks. Category Literacy rate (%) Overall 76.7 Male 81.5 Female 71.3 Higher education infrastructure (As of September 2015) Universities 14 Arts, commerce, home science and science colleges & B.Ed. colleges 542 Engineering colleges 111 Polytechnic colleges 193 ITI s 369 Position of elementary and secondary education ( ) Primary schools 13,185 Middle schools 2,885 High/senior secondary schools 3,430 Source: Punjab Bureau of Investment Promotion; Annual Plan ; Budget ; Economic Survey of Punjab,

32 SOCIAL INFRASTRUCTURE EDUCATION (2/3) Major educational institutes in Punjab are: Indian Institute of Science Education and Research (IISER), Mohali. Punjab s primary education statistics ( ) Enrolment in schools lakh Institute of Nano Science and Technology (INSE), Mohali. Enrolment in colleges lakh National Agri-Food Biotechnology Institute (NABI), Mohali. Source: Economic Survey of Punjab ; News articles Indian School of Business (ISB), Mohali. Postgraduate Institute of Medical Education and Research (PGIMER), Chandigarh. Indian Institute of Technology, Ropar. University Business School, Chandigarh. Punjab Agricultural University, Ludhiana. National Institute of Technology, Jalandhar. 32

33 SOCIAL INFRASTRUCTURE EDUCATION (3/3) In order to develop and improve the education infrastructure in the state, the government has proposed US$ 1, million in Budget US$ million is for Sarva Siksha Abhiyaan programme US$ 46.0 million is for Mid-Day Meal scheme US$ 51.4 million is for ICT Project to impart computer education from class 6 th to 12 th US$ 14.9 million is for Rashtriya Madhyamik Sikhsha Abhiyan (RMSA) programme US$ 6.6 million is for District Institutes of Education & Training US$ 3.3 million is for Strengthening of Senior Secondary Girls Schools US$ 3.3 million Vocational Education Programme US$ 3.3 million is for model Schools US$ 2.3 million is for Sakshar Bharat Mission US$ 1.7 million is to give scholarship to brilliant students. Source: State Budget

34 SOCIAL INFRASTRUCTURE HEALTH The public healthcare infrastructure of the state has a three-tier structure comprising hospitals, primary health centres and subcentres, health units and community health centres. During , the average radius served per healthcare institution was 3.12 km. Around 90 per cent of non-hospital healthcare and 67 per cent of hospital care cases are handled by private healthcare services. In annual budget, state government announced plans to invest US$ 499 billion towards health, family welfare and medical education. Few allocations in health sector (In US$ million) For providing affordable and accountable health care services to the community For providing emergency response services (108- Ambulance Services) medical helpline (104) in the state For treatment of cancer patients under CM cancer relief fund Medical Insurance for poor people 8.3 Creation of cancer and drug de-addiction treatment infrastructure Support for Baba Farid University of Health Sciences, Faridkot Health indicators of Punjab ( ) Population served per doctor 1,100 Birth rate Death rate Infant mortality rate Life expectancy at birth (years) Male ( ) 69.7 Female ( ) 72.8 Health infrastructure ( ) Total hospitals 270 Ayurvedic and unani institutions Ayurveda dispensaries and hospitals Homoeopathic institutions; Homeopathy dispensaries 507-dispensaries 5 hospitals 302 Community health centres 189 Dispensaries 1,504 Source: Economic Survey of Punjab, State Budget ; Punjab Bureau of Investment Promotion;, 1 Per thousand persons; 2 Per thousand live births 34

35 CULTURAL INFRASTRUCTURE.. (1/2) The traditional game of Punjab is Kabaddi. Hockey and wrestling are the prominent sports in Punjab. The state has a number of sports stadiums and clubs in Chandigarh, Mohali, Amritsar, Jalandhar and other parts of the state. For the construction of entrance plaza in the forecourt of Shri Harmandir Sahib, facade improvement of the surroundings of Golden Temple, Jallianwala Bagh, town hall and Hall Gate in Amritsar, the state government has announced plans to invest US$ million as per the budget. For improving the tourism and cultural infrastructure of the state, Punjab Infrastructure Development Board (PIDB) has planned to invest US$ million during The state has a scheme for having a stadium at the blocklevel, with indoor facilities for wrestling, boxing, judo, weight lifting, etc. Construction of such facilities has been completed in 12 blocks. The Golden Temple, Jalianwala Bagh and the Wagah Border (with Pakistan) at Amritsar are among the state s main tourist destinations. Number of tourist arrivals in the state increased to lakh in from lakh in Tourist arrival in Punjab (In lakhs) Year Domestic Foreign Source: Department of Sports, Department of Tourism, Government of Punjab The state government implemented a comprehensive sports policy for providing better sports facilities in the state. According to the policy, the cash incentive for gold medallists in the Olympics, Asian as well as Commonwealth games increased to US$ 0.37 million, US$ 0.04 million and US$ 0.03 million, respectively. The finance minister of Punjab announced an allocation of US$ 1.08 million for the Rajiv Gandhi Khel Abhiyan scheme, US$ 1.16 million for the development of sports, US$ 1.16 million for National Service Scheme and US$ 0.17 million for rural sports club. Source: State Budget

36 CULTURAL INFRASTRUCTURE.. (2/2) Various skill development schemes brought up by the government during , include: Aajevika skills of National Rural Livelihoods Mission (NRLM) Employment through skill training and placement of National Urban Livelihoods Mission (NULM) Recognition of Prior Learning (RPL) of construction workers- a mission formulated scheme and funded by The Building & Other Construction Workers (BOCW) Skill development of the wards/dependents of construction workers not covered under Recognition of Prior Learning (RPL) Skill development component of Multi Sectoral Development Project (MSDP) for minorities - six blocks of Sangrur and Gurdaspur districts. Seekho Aur Kamao scheme of National Minority Development and Finance Corporation (NMDFC) The state government allocated US$ million for the skill development of 1,21,000 youngsters under these schemes. 36

37 INDUSTRIAL INFRASTRUCTURE (1/2) Name and location Primary industry Description Electronics Township (ELTOP), Mohali Industry clusters Food Park Project, Sirhind, Fatehgarh Sahib District Apparel Park, Doraha, Ludhiana Biotech Park, Dera Bassi, Chandigarh SEZ, Mohali Electronics Industry specific Agro-processing Textiles Biotech IT and electronics; pharmaceuticals Set up by Punjab Information and Communication Technology Corporation Limited (Punjab Infotech) for the promotion and growth of the electronics industry in the state. Clusters identified for bicycles and bicycle parts (Ludhiana), steel re-rolling (Mandi Gobindgarh), textiles (Ludhiana), sports and leather goods (Jalandhar), and woollens (Amritsar). Joint initiative of a Non-Resident Indian (NRI) group and Punjab Agro Industries Corporation; spread over 25 acres and one of India's largest and most sophisticated integrated vegetable and fruit processing complexes with support facilities for an annual capacity of over 5,000 million tonnes (MT) frozen storage facility and 5,000 MT cold storage facility. Integrated textile park with 115 plots jointly developed by Punjab Small Industry and Export Corporation Limited and the Association of Textile Industry. Has all the basic facilities including water, electricity, R&D lab and sewage treatment facility, etc. SEZ status granted to QuarkCity in Mohali to promote IT and electronics sectors and to Ranbaxy s SEZ at SAS Nagar, Mohali. 37

38 INDUSTRIAL INFRASTRUCTURE (2/2) In order to create new and improved industrial infrastructure and for enhancement in the existing infrastructure of various focal points in the state, the state government allocated US$ million for the 12 th Five Year Plan and US$ 1.66 million for annual plan Punjab has approximately 157,000 registered industrial units that include the micro, small, medium and large industries. The industrial focal points developed by Punjab Small Industries & Export Corporation (PSIEC) are based in Ludhiana, Mohali, Hoshiarpur, Sangrur, Bhatinda, Jalandhar, Pathankot, Amritsar, etc. Through the 12 th Five-Year Plan, the government has envisaged an investment outlay of US$ million that includes the following major focus areas. Out of this budget about 55 per cent has been released as of March Protecting and promoting small scale units, which form an integral part of the state s industrial landscape. Developing industrial clusters, mega projects and SEZs. Special packages to develop the IT and knowledge-based, agro-based and food processing industries. As per Budget , the state government has announced plans to introduce the Entrepreneurship Development Programme scheme. The timeline for this scheme would be five years and according to this scheme, an interest subvention at the rate of 3% will be given to those enterprises who have taken loans for the establishment of a micro or small enterprise. The maximum limit for the loan can be US$ 0.83 million. For this scheme, the state government has announced plans to invest US$ million. Source: Department of Planning, Government of Punjab, Annual Plan Economic Survey of Punjab

39 AMRUT AND SMART CITIES Out of 100 smart cities to be created across India, the Government of Punjab has proposed 3 smart cities for the state, which include Amritsar, Jalandhar and Ludhiana. The government would be spending US$ 7.96 billion for the creation of these 100 smart cities in India. The 3 cities of Punjab would be allotted central assistance of US$ million every year for the next five years. Amritsar 17 cities of Punjab are identified to be developed as AMRUT cities. Jalandhar Smart cities in Punjab Ludhiana Cities Population Area (sq km) Literacy rate Amritsar 2,490,656 2, % Jalandhar 2,193,590 2, % Ludhiana 3,498,739 3, % Source: TechSci Research 39

40 KEY INDUSTRIES The resources, policy incentives, infrastructure and climate in the state support investments in sectors such as agrobased industries, food products, light engineering goods, automotives, chemicals, sports goods, textiles, pharmaceuticals, paper and paper products, metal and alloy products. Punjab State Industrial Development Corporation Ltd (PSIDC) and Punjab Small Industry and Export Corporation (PSIEC) are responsible for developing industrial infrastructure in the state. Punjab Agro Industries Corporation (PAIC) is responsible for developing agrobased units. Registered factories in Punjab Key industries in Punjab Tractors and auto components Agro-based industries Bicycles and bicycle parts Chemical products Food products Light engineering goods Metal and alloy products Pharmaceuticals Paper and paper products Sports goods Textiles IT and electronics Number of factories 12,593 Fixed capital US$ 6, million Number of employees 600,041 Net value added US$ 5, million 40

41 KEY INDUSTRIES AGRO-BASED INDUSTRY (1/3) Agriculture is one of the significant sectors for the growth of Punjab s economy. It is providing livelihoods to more than 60 per cent of the state s population. The agriculture sector contributed around per cent to the state s GSDP in As of 2015, the state of Punjab accounted for a share of around 11 per cent and 7 per cent of the country s overall rice production and dairy production, respectively. The state accounts for the highest yield of rice, paddy and wheat in India. Cooperatives have been contributing a significant share in the growth of the agriculture sector in the state. Sugar cooperatives are one of the major contributors in Punjab s economy. In the budget, the state government announced plans to allocate US$ million to sugar cooperatives so that they can facilitate timely payment to the cane producers. Approximately 82 per cent of the state s land is under cultivation compared with the national average of 40 per cent and around 98 per cent of the cultivable area is under assured irrigation. In the budget, the state government of Punjab has proposed to invest US$ million for the agriculture sector. Nestle India MILKFED Jagjit Industries Ltd Markfed Some of the key players Some scheme wise allocations earmarked in Budget US$ million for making payments to cane growers US$ million for Punjab Agricultural University, Ludhiana US$ million for strengthening of agriculture and allied sectors under RKVY US$ million for National Horticulture Mission US$ 8.29 million for National Food Security Mission Source: Statistical Abstract Punjab 2014, Punjab Bureau of Investment Promotion, State Budget

42 KEY INDUSTRIES AGRO-BASED INDUSTRY (2/3) Punjab is also known as the Bread Basket of India. The state accounted for a share of over 40 per cent and 26 per cent of the central procurement of wheat and rice, respectively, in the country. In addition, the state accounted for 75 per cent share in the country s total production of kinnows & oranges and 7.5 per cent share in the total milk production in the country. Food processing is considered to be a focus area in the state and the government has made various efforts in aiding deserving investments for the food processing industry. As per the Invest Punjab Summit that took place in Mohali on 28 th October, 2015, the Deputy Chief Minister of Punjab, Mr. Sukhbir Singh Badal announced a policy of zero tax on new food processing units in the state. With this announcement, 55 Memorandum of Understanding (MoU) were received under the food processing sector with an investment of US$ 1, million. Source: Punjab Investor Summit 42

43 KEY INDUSTRIES AGRO-BASED INDUSTRY (3/3) Nestle India MilkFed Jagatjit Industries Ltd (JIL) Markfed A subsidiary of Nestle SA, Switzerland, the company started milk collection in Moga, Punjab, in 1961 and has expanded operations to a network of more than 85,000 farmers. The company has its processing unit in Moga. Nestlé's famous brands include Nescafe, Maggi, Milkibar, Kit- Kat, Bar One, Milkmaid, Nestea, etc. The company recorded revenues of US$ 1.6 billion during January 2014 to December 2014 and revenues of US$ million between January June MILKFED (The Punjab State Cooperative Milk Producers' Federation Ltd) was formed in 1973 with the objectives of providing remunerative prices to milk producers in the state, marketing their produce and providing technical inputs for the enhancement of milk production. The company has a strong network of about 7,370 milk producers cooperative societies at the village level, 12 milk plants and two cattle-feed factories. It is well known for the Verka brand of dairy products, including milk, butter, buttermilk, cheese, curd, milk powder, ice cream, ghee, etc. JIL was founded in 1944 in Kapurthala under the patronage of Maharaja Jagatjit Singh. The company manufactures and markets alcoholic beverages, malt, malt extract, malted milk foods, milk powder, ghee, glass and pet containers. The company recorded revenues of US$ million in Markfed began operations in 1954 with 13 members and a share capital of US$ 6,000. It has grown to be among the largest marketing cooperatives in Asia with an annual business turnover of around US$ 1.9 billion with nearly 2,710 employees and 20 industrial units. Punjab Markfed is a marketing federation of over 3,069 societies. The cooperative has won recognition and many awards from the Government of India in several areas of excellence; Markfed represents the interests of over a million farmers in the state. 43

44 KEY INDUSTRIES IT AND ELECTRONICS (1/2) Punjab s IT policy and the incentives offered to the IT industry are aimed at promoting Punjab as an attractive destination for the industry. Mohali has been developed as an IT and ITeS hub in the state. In , software exports from the Rajiv Gandhi Chandigarh Technology Park was valued at around US$ million. Punjab Infotech is the nodal agency for the promotion and development of the electronics, telecommunication and IT industries within the state. Some of the key players Infosys Ltd JCT Electronics Ltd Punjab Communications Ltd APLAB Ltd STPI: Software Technology Parks of India Software exports from the state of Punjab have increased from US$ million in to US$ million in In , the Governor of Punjab presented the IT Policy-2013, which laid out the following objectives: Promoting the manufacturing of various IT units in various IT related facilities in Punjab; Increasing the opportunities for direct and indirect employment generation for the youth in the state; Promotion of investments related to the private sector in the IT sector of the state; Provide skill development to the youth of Punjab for enhancing their employability. Source: Department of information and Technology, Government of Punjab 44

45 KEY INDUSTRIES IT AND ELECTRONICS (2/2) Infosys Ltd JCT Electronics Ltd (JCTEL) Infosys, which recorded consolidated revenues of US$ 8.8 billion in and US$ 4.97 billion between April 2015 and September 2015, has thirty two development centres across the country, with one in Mohali, set up in The Mohali centre is equipped with the latest technology and solutions for enterprise networking, office productivity, collaborative software engineering and distributed project management. In February 2014, Infosys announced that it would set up an IT unit at Mohali. The construction of the facility is expected to start by the end of September and get completed by March JCT Electronics is a flagship company of the Thapar Group, one of India s large industrial conglomerates. JCTEL manufactures colour picture tubes for television sets and has a production capacity of around 5.2 million units annually. The company's plants are located at Vadodara (Gujarat) and Mohali (Punjab). It recorded revenues of around US$ 0.4 million in Punjab Communications Ltd APLAB Ltd Puncom is India's premier telecom and IT equipment and solution provider. During , the company generated revenues of US$ 3.48 million and US$ 1.42 million during April September Broadly, the company's activities cover areas such as telecom equipment manufacturing, IT and software solutions, turnkey projects as well as repair and maintenance. It has a manufacturing facility at Mohali near Chandigarh. APLAB Ltd is a public enterprise incorporated in 1962 to provide solutions to business sectors such as telecommunication, IT, retail banking, retail fuel-dispensing as well as power control and conditioning. The company has four independent product divisions: test and measurement equipment, power conversion and Uninterrupted Power Systems (UPS), self-service terminals for banking, and self service terminals for petroleum sectors. In Punjab, the company has presence in Chandigarh, Ludhiana, Amritsar and Jalandhar. The company recorded revenues of US$ million in and US$ 5.80 million during April 2015-September