DELHI AUGUST 2015 THE HEART OF INDIA. For updated information, please visit

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2 Executive Summary Advantage State Delhi Vision Delhi An Introduction... 6 Budget Infrastructure Status.17 Business Opportunities Doing Business in Delhi.. 61 State Acts & Policies

3 EXECUTIVE SUMMARY Delhi is one of the fastest growing states of the country. At current prices, the gross state domestic product (GSDP) of Delhi was US$ 74.8 billion in Between and , the GSDP of the state grew at a CAGR of 12.8 per cent. Real estate & construction sector s contribution to the GSDP in the state has increased from US$ 3.24 billion in to US$ billion in Government focus towards affordable housing is boosting the growth of the real estate sector in the state. As per the Budget , the government has constructed 23,000 economically weaker section (EWS) houses in and about 29,000 EWS houses are under different stages of construction. For housing and urban development in Delhi, the state government has announced plans to invest US$ million in Owing to its location, connectivity and rich cultural history, Delhi has always been a prime tourist attraction of the country. Delhi is also a key arrival/departure point for both foreign and Indian nationals. Delhi is among the top tourist destinations in India. The number of domestic tourists visiting the state is gradually rising, The number of domestic tourists grew from million in 2012 to million in Strong economic growth Attractive real estate industry Growing tourism industry Policy support The state has set up a single window approval mechanism to facilitate entrepreneurs in obtaining clearance from various departments/agencies for the establishment of industrial enterprises in the National Capital Territory (NCT) of Delhi. The new Industrial Policy aims to provide a conducive environment for knowledge based and hi-tech IT/ITeS industries in Delhi. Source: State Budget, Ministry of Tourism, Central Statistics Office, TechSci Research 3

4 ADVANTAGE Per capita GSDP was US$ 4,252. Between and , per capita GSDP grew at a CAGR of 10.9 per cent PoliticalGrowing and economic demand hub As Delhi is the seat of the central government, it has an important position in the country in terms of formulation of policies. It has also become an important centre of trade and commerce, as a number of key industry associations are present. The state also hosts several trade conventions and fairs throughout the year. GSDP at current prices increased at a compound annual growth rate (CAGR) of 12.8 per cent between and Rich skill pool Attractive avenues of investment Advantage Delhi Delhi has a large skill base; 30 per cent of the workforce is qualified for occupations such as engineering, medicine, law, and consultancy. Among all the states, Delhi has the largest share of skilled workforce, making it suitable for knowledge-based economic activities such as IT/ITeS, designing, R&D and financial services. As Delhi is the country s capital and has ample facility support, it attracts skilled and semiskilled labour from across the country. It houses a few of the country's most prestigious institutes such as IIT, IIFT, FMS and AIIMS. Delhi has emerged as a key state with immense scope for development of the services industry such as BFSI, IT and ITeS, and consulting, among others. Delhi has an attractive real estate market and is a preferred tourist destination. Many global corporations have offices in the state. The state has a huge potential for agrochemical-based products. Demand is rising in Haryana, UP, Rajasthan, Punjab and major NCR areas like Ghaziabad, Noida, Gurgaon, Meerut & Faridabad Per capita NSDP was US$ 4,076. Between and , per capita NSDP grew at a CAGR of 11.1 per cent Policy and infrastructure support Delhi has a stable political environment with a single party government. The Delhi government is committed towards creating a progressive business environment. A range of fiscal and policy incentives are proposed under the Industrial Policy for Delhi. Delhi has a well developed social, physical and industrial infrastructure. It has wide roads, an international airport, and a well developed network of rail and metro infrastructure. The state has more than 100 per cent telecom penetration and high internet penetration. 4

5 VISION Housing for urban poor to per cent of total. Regularise unauthorised colonies. Optimum utilisation of available resources for housing. Enhancement of ground coverage. Locating new school sites adjacent to parks/playgrounds. Provision for vocational facilities. Rationalisation of planning norms with enhanced floor area. Shelter Educational facilities Vision 2021 Transportation Development of multilevel and underground parking space. Integrated multimodal public transport system. Industry Trade & commerce Upgradation & modernisation of existing industries. Recognition and inclusion of new industries. Infrastructure development Health infrastructure Provisions for service and repair activities. Integrated freight complexes and wholesale markets. Develop district and community centres. Alternate source of energy. Power, drainage and waste management. Building regulations for safety of structures as per seismic zone. Land use zoning as per microzonation. Achieve norms of five beds per 1,000 population. Enhancement of FAR for hospitals and other facilities. Source: Delhi Development Authority 5

6 FACT FILE Delhi is home to the Union Government of the country and the state government offices. Delhi is the centre of international politics, trade, culture and literature in India. The NCR of Delhi includes the neighbouring cities of Gurgaon, Noida, Ghaziabad, Faridabad, Neharpar (Greater Faridabad), Greater Noida, Sonepat, Panipat, Karnal, Rohtak, Bhiwani, Rewari, Baghpat, Meerut, Alwar, Bharatpur and other nearby towns. Source: Maps of India Delhi is the capital of the Republic of India and also a state for administrative purposes. It is one of the largest metropolises in the country. Delhi shares its borders with the states of Uttar Pradesh and Haryana. Delhi has a cosmopolitan culture with a mix of languages in use. English and Hindi are commonly spoken for everyday transactions. Punjabi, Bihari, Haryanvi, etc., are the other languages used. The Delhi state is divided into 33 sub-divisions under 11 districts. The Union Government s area is managed by the New Delhi Municipal Council (NDMC). Parameters Delhi Geographical area (sq km) 1,483 Administrative districts (No) 11 Population density (persons per sq km) Total population (million) 11, Male population (million) 9.0 Female population (million) 7.8 Sex ratio (females per 1,000 males) 866 Literacy rate (%) 86.2 Source: Delhi Economic Survey

7 IN FIGURES (1/2) Parameter Delhi All states Source Economy GSDP as a percentage of all states GSDP TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Delhi, Government of Delhi GSDP growth rate (%) TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Delhi, Government of Delhi Per capita GSDP (US$) 4,252 1, TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Delhi, Government of Delhi 8,333.5^ 272, Central Electricity Authority, as of May 2015 Wireless subscribers (no) 46,027,009* 973,347,094 Telecom Regulatory Authority of India-April 2015 Broadband subscribers (no) 6,430,000** 100,760,000 Telecom Regulatory Authority of India--April 2015 National highway length (km) , National Highway Authority of India April Airports Authority of India Physical Infrastructure Installed power capacity (MW) Airports (no) ^As of June 2015, *As of May 2015, **As of March

8 IN FIGURES (2/2) Parameter Delhi All states Source Literacy rate (%) Census 2011 Birth rate (per 1,000 persons) SRS Bulletin, 2014 FDI equity inflows (US$ billion)* Department of Industrial Policy & Promotion, April 2000 to March 2015 Outstanding investments (US$ billion) ,414.2 CMIE ( ) 15 1,409 DEA, Ministry of Finance, Government of India Social Indicators Investment Industrial Infrastructure PPP projects (No) *Including part of Uttar Pradesh and Haryana, PPP: Public-Private Partnership, SRS: Sample Registration System 8

9 ECONOMIC SNAPSHOT GSDP GSDP per capita of Delhi at current prices (in US$) 4, CAGR 10.9% ,498 2,567 3,333 3,739 3,713 3,814 2, , , , CAGR 12.8% GSDP of Delhi at current prices (in US$ billion) At current prices, the gross state domestic product (GSDP) of Delhi was US$ 74.8 billion in The state s per capita GSDP in was US$ 4,252 compared with US$ 1,509.8 in Between and , the GSDP of the state grew at a CAGR of 12.8 per cent. The per capita GSDP increased at a compound annual growth rate (CAGR) of 10.9 per cent between and Growth was driven by the expansion of the services sector. Banking and insurance, real estate, trade, tourism and communications were driving the progress in the sector. Source: TechSci estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Delhi, Government of Delhi 9

10 ECONOMIC SNAPSHOT NSDP NSDP per capita of Delhi at current prices (in US$) 4, ,365 2, , , ,425 3,182 3,560 3,546 3,649 1, CAGR 11.1% CAGR 13.0% NSDP of Delhi at current prices (in US$ billion) At current prices, the net state domestic product (NSDP) of Delhi was about US$ 71.7 billion in The state s per capita NSDP in was US$ 4,076 compared with US$ 1,425.4 in The average NSDP growth rate between and was about 13 per cent. The per capita NSDP increased at a CAGR of 11.1 per cent between and Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Delhi, Government of Delhi 10

11 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP Commerce and trade contribute more to Delhi s economy than manufacturing and agriculture. GSDP composition by sector CAGR There has been a shift in the sectoral contribution from primary and secondary to the tertiary sector. The overall performance of the economy of the state during the was encouraging. In , the tertiary sector accounted for 87.7 per cent (US$ billion) of the GSDP of Delhi at current prices, followed by the secondary sector, which contributed US$ 8.5 billion (11.4 per cent). 13.8% 80.5% 87.7% 7.5% 18.4% 10.7% 1.1% With a CAGR of 13.8 per cent, the tertiary sector has been the fastest growing among the three sectors from to Growth has been driven by trade, hotels, real estate, banking, insurance, transport, communications and other services. Delhi s economy is primarily dominated by knowledge based service industries such as information technology and consulting. Also, the state has small-scale industries that are mostly non-polluting. Primary sector 11.4% 0.9% Secondary sector Tertiary sector Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Delhi, Government of Delhi 11

12 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION Commonly grown crops in the state are wheat, rice, jowar, bajra, mustard and vegetables. In , wheat was the main food grain crop. The total production of wheat in the state was estimated at around 85,558 tonnes. With over 19,360 hectares under cultivation, the yield stood at 4,419 kg per hectare. In , thousand metric tonnes of onions were produced in the state. For the same year, potato production in the state was thousand metric tonnes. Crop Area (hectares) Annual production (tonnes) Wheat 19,360 85,558 Barley Bajra 1,520 3,237 Maize Jowar 3,242 31,313 Paddy 6,035 15,904 Gram Potatoes ,276 Mustard 1,031 1,287 Source: Ministry of Agriculture, Economic Survey of Delhi

13 ECONOMIC SNAPSHOT AGRICULTURE Delhi an important centre for agri-trade in the country The Food Corporation of India (FCI) was set up under the Food Corporations Act, 1964, of the Union Government to meet the objectives of the Food Policy, which are as follows: Effective price support for safeguarding the interests of farmers. Distribution of food grains throughout the country for Public Distribution System (PDS). Maintaining a satisfactory level of operational and buffer stocks of food grains to ensure national food security. Over the years, FCI has played an important role in controlling supply and prices as well as disaster management in times of droughts, etc. The corporation is headquartered in Delhi. The Indian Agricultural Research Institute (IARI), the country's premier national institute for agricultural research, education and expansion, has a centre in New Delhi. The Indian Council of Agricultural Research (ICAR), an autonomous organisation under Ministry of Agriculture, Government of India, is also headquartered in New Delhi. The institute is the apex body for coordinating, guiding and managing research and education in agriculture, including horticulture, fisheries and animal sciences in the country. The Agricultural Economics Research Centre (AERC), University of Delhi was established to carry out research on aspects related to rural economy and agriculture in India. Since inception, the centre has completed more than 300 policy oriented studies for the Ministry of Agriculture, Government of India. 13

14 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS Sector 12th FYP outlay (US$ million) Approved outlay (US$ million) Rural development Irrigation & flood control Energy Industries Transport Tourism Civil supplies General education Technical education Art & culture Sport & youth services Medical FDI equity inflows, to (US$ million)* 9,695 7,983 6,242 2,677 6,875 3, According to the Department of Industrial Policy & Promotion (DIPP), the cumulative FDI inflows from April 2000 to March 2015 amounted to US$ 49.4 billion*. Source: Department Of Industrial Policy & Promotion, *Including part of Uttar Pradesh and Haryana 14

15 ANNUAL BUDGET (1/2) A plan outlay of US$ 6.52 billion is proposed for Annual Plan with key focus on sectors like education, health and transport. The estimated expenditure will be funded from revenue receipts of US$ 5.33 billion, capital receipts of US$ million and remaining from opening balance. The revenue receipts include tax revenue of US$ 4.59 billion and non-tax revenue of US$ million. Transportation, health, education, urban development and water supply are the main sectors to get benefited in state budget. Sectors Amount (US$ million)* Rural development Major irrigation & flood control Energy 107 Industries Transport Science, technology and environment Secretariat economic services 0.71 Tourism 6.8 Civil supply 1.66 General education Medical Urban development * numbers are converted using exchange rate of Rs 60.28/US$ 15

16 ANNUAL BUDGET (2/2) Sectors Amount (US$ million)* Housing Water supply and sanitation Agriculture and allied services 1.49 Public works Jail Women and child development Nutrition Social welfare Labor and labour welfare Welfare of SC/ST/OBC/minorities Minor Irrigation and Flood Control Department Other administrative services General economic services 0.71 Civil supplies, weights and measures 1.66 Others * numbers are converted using exchange rate of INR 60.28/US$ 16

17 PHYSICAL INFRASTRUCTURE ROADS (1/2) The road network of Delhi has increased from 32,131 km in to 33,198 lane km in About 360 km of national highways run through the state. These are maintained by National Highways Authority of India (NHAI). As of March 2015, the total number of motor vehicles on road was lakh, reflecting an increase of 6.4 per cent over Road type Length (km) Total road length 33,198 National highways 360 Growth of road network in Delhi by agency (km) Agency MCD 27,139 27,139 27,139 27,139 26,459 23,931 23,931 23,931 NDMC 1,290 1,290 1,290 1,290 1,290 1,290 1,290 1,290 Public works department (Delhi Government) National highways Other roads 2,230 2,270 2,300 2,400 3,180 5,708 5,708 5,708 DSIIDC 1,250 1,317 1,317 1,434 1,434 1,434 1,434 1,434 I&FC DDA NA NA NA NA Source: Delhi Statistical Handbook

18 PHYSICAL INFRASTRUCTURE ROADS (2/2) National Highway Authority of India (NHAI), Public Works Department (PWD), Municipal Corporations of Delhi (MCD), New Delhi Municipal Council (NDMC), Delhi Cantonment Board (DCB) and Delhi Development Authority (DDA) are the responsible authorities for the development and maintenance of road network in Delhi. Major schemes for Delhi s road transport Computerisation of records Motor driving training schools Mass Rapid Transit Systems (MRTS) Delhi State Industrial And Infrastructure Development Corporation (DSIIDC) works for providing basic infrastructure of roads in unauthorised colonies of Delhi. The work is carried out as deposit work on behalf of the Urban Development (UD) Department, Government of Delhi. DSIIDC has been associated with various colonies spread over 27 different assembly constituencies in Delhi. The Golden Quadrilateral project of the National Highway Authority of India (NHAI) directly connects Delhi to other major markets and cities of the country. Action has been taken to implement the Delhi Integrated Multimodal Transport System (DIMTS). The existing road network is being upgraded and express highways and freeways are being constructed along key routes in Delhi-NCR. Decongestion & Rationalisation of Inter-State Bus Terminals The state government proposed to invest US$ 52 million in budget for the construction of parallel flyover at RTR junction on outer ring road and underpass at BJ marg ring road junction. This project is expected to complete by the end of next year. Control of vehicular air pollution Parking facilities Restructuring of Delhi Transport Corporation Incentives for replacement of old Light Commercial Vehicles Vehicle population Vehicles Cars & jeeps 262,525,0 279,056,6 Motorcycles & scooters 529,616,3 568,126,5 Ambulance 1,519 1,527 Auto rickshaws 78,750 81,633 Taxies 74,758 79,606 Buses 19,641 19,729 Source: Department of Planning, Government of NCT of Delhi 18

19 PHYSICAL INFRASTRUCTURE RAILWAYS Delhi is well connected by rail network to other parts of India. A significant part of trade is supported by the strong railway links. New Delhi Railway Station, which is one of the busiest stations in the Indian Railway system, serves as the headquarters of Northern Railways. A large load of inter-state transport is borne by railways. Major railway stations in the state include New Delhi Railway Station, Old Delhi Railway Station, Hazrat Nizamuddin Railway Station, Sarai Rohilla and Anand Vihar Railway Terminal. Delhi Metro Phase I Phase II 20.23% underground 27.92% underground 33.79% underground 72.85% elevated 70.33% elevated 66.21% elevated/at grade 6.91% at grade 1.73% at grade NA Phase III Delhi Metro existing phase Phase Completion year Phase I 2006 Phase II 2008 Phase III 2016 (expected) Phase IV 2021 (expected) Source: Delhi Economic Survey , Delhi Metro Rail Corporation, News Article 19

20 PHYSICAL INFRASTRUCTURE RAILWAYS METRO RAIL (1/3) The Delhi Metro Rail Corporation (DMRC) was registered in 1995 under the Companies Act, 1956, for development of Delhi Mass Rapid Transit System (MRTS). DMRC has equal equity participation from the Government of India and Government of National Capital Territory of Delhi (GNCTD). Average ridership of Delhi Metro was approximate 24 lakh per day during The objectives of the Delhi Metro Rail are as follows: To cover the whole of Delhi with a metro rail network by Delhi Metro to have world-class standards in terms of safety, reliability, punctuality, comfort and customer satisfaction. Delhi Metro to operate on commercial lines, obviating the need for government support. In budget, the state government proposed to invest US$ million for the DMRC. The metro line from Central Secretariat to ITO has been made functional in June, 2015 and the metro line up to Kashmere Gate is anticipated to be operational by March The metro line from Jahangirpuri to Badli is also expected to be completed during The metro lines from Mukandpur-Shiv Vihar, Janakpuri West-Kalindikunj, Dwarka-Najafgarh and Mundka to Bahadurgarh are projected to be operational by December As of , about 238 metro feeder bus services are functional in the state. The state government of Delhi proposes to introduce 304 new metro feeder buses in the budget. Source: Delhi Economic Survey , Delhi Metro Rail Corporation, State Budget

21 PHYSICAL INFRASTRUCTURE RAILWAYS METRO RAIL (2/3) Phase-I network Line Length (km) No of stations Line No 1-Shahdara-Tri Nagar-Rithala Line No 2-Vishwa Vidyalaya-Central Secretariat Line No 3-Indraprastha-Barakhamba Road-Dwarka sub-city Length (km) No of stations Shahdara-Dilshad Garden Indraprastha-Noida (Sector-32) City Centre Yamuna Bank-Anand Vihar ISBT Vishwavidyalaya-Jahangir Puri Inderlok-Kirti Nagar-Mundka Central Secretariat-HUDA City Centre Dwarka (Sector-9)-Dwarka (Sector-21) Airport Express Line Anand Vihar-KB Vaishali (Ghaziabad) Central Secretariat-Badarpur (Faridabad) Phase-II network Line Source: Delhi Metro Rail Corporation, News Article 21

22 PHYSICAL INFRASTRUCTURE RAILWAYS METRO RAIL (3/3) Phase-III network Line Length (km) No of stations Line 7- Majlis Park-Shiv Nagar Line 8- Janakpuri West-Kalindikunj Line 6- Central Secretariat-Kashmiri Gate Line 2 Extn.-Jahangirpuri-Badli Line 6 S- Badarpur-Faridabad Line 5 Extn.-Mundka-Bahadurgarh Dwarka-Najafgarh Kalindikunj-Botanical garden Escorts Mujesar-Ballabhgarh Dilshad Garden-Ghaziabad Bus Adda Noida City Centre- Sector 62 Noida Not available Phase-III network 8 Lines Source: Delhi Metro Rail Corporation 22

23 PHYSICAL INFRASTRUCTURE AIRPORTS The Indira Gandhi International Airport (IGIL), one of the busiest in the world, was ranked the second-best airport in the world in 2011 by the Airports Council International. The IGIL airport has been awarded the 'International Safety Award' by British Safety Council. In July 2010, Terminal 3 of the airport was inaugurated, which enhanced the passenger handling capacity of the airport to 60 million passenger annually. IGIL handled around million passengers in Terminal 3 is spread over a 500,000 square metre area and equipped with 95 immigration counters, 168 check-in counters and 78 passenger boarding bridges to handle 34 million passengers per annum (MPPA) and 12,800 bags per hour. The planned ultimate design capacity of the airport is 100 MPPA. Delhi International Airport Limited (DIAL) Project awarded in May 2006 Constructed by a consortium of: GMR Group (54 per cent) Fraport AG & Eraman Malaysia (10 per cent each) Airports Authority of India (26 per cent) Terminal 1 - Domestic Terminal (T1A/T1D Departure, T1C Arrival) Terminal 2 - International Terminal Terminal 3 - International and Domestic Hub International Cargo Terminal Airport indicator Year Passengers Aircraft movement Cargo handled (tonnes) ,729, , , ,211, , , ,876, , ,985, , ,539 Source: Airports Authority of India 23

24 PHYSICAL INFRASTRUCTURE POWER (1/5) As of June 2015, Delhi had a total installed power generation capacity of 8,333.5 MW Installed power capacity (MW) 5, , The total installed power generation capacity comprised about 60 per cent of coal-based power plants and 40 per cent of gas-based power plants. 7, , , , ,115.0 The state government of Delhi is focussed towards the enhaced usage of solar energy. In , a new solar photo voltaic (SPV) power plant with capacity of 2.14 MW has been installed at Indira Gandhi International Airport Central and state sector accounted for the majority of the share in the total installed capacity in the state. As of June 2015, the central sector accounted for per cent share and the state sector accounted for per cent share in total installed power capacity in Delhi Electricity supplied to Delhi is also generated from hydro (9.86 per cent) and nuclear power sources (1.46 per cent). Source: Central Electricity Authority 24

25 PHYSICAL INFRASTRUCTURE POWER (2/5) Segment Power generation Power transmission Name of company Indraprastha Power Generation Co Ltd (IPGCL) Pragati Power Corporation Ltd (PPCL) NTPC Ltd Delhi TRANSCO Ltd (DTL) BSES Yamuna Power Ltd (BYPL) BSES Rajdhani Power Ltd (BRPL) Power distribution Tata Power Delhi Distribution Limited (TPDDL) New Delhi Municipal Council (NDMC) Military Engineering Services (MES) Source: Delhi Electricity Regulatory Commission 25

26 PHYSICAL INFRASTRUCTURE POWER (3/5) IPGCL and PPCL were the two state-owned power generating entities earlier. To improve power generation and operational efficiencies, the government decided to merge IPGCL and PPCL into a single entity. Capacity additions, in the form of three power projects (two gas-based and one coal-based), have been initiated to meet the growing power demands of the state. The electricity supply in the state increased from 23,537 million units in to 37,484 million units in For the same period, peak demand increased from 3,626 MW to 5,925 MW. Electricity consumption in Delhi (in MU) Year Domestic Commercial Industrial Others ,481 4,701 2,851 2, ,753 4,741 2,991 1, ,723 5,074 3,008 1, ,396 6,253 2,989 2, ,796 5,569 2,979 2, ,609 6,786 3,064 2, ,649 6,370 3,062 3,029 The total count for electricity consumers in the state was lakh in Source: Delhi Economic Survey , Delhi Electricity Regulatory Commission 26

27 PHYSICAL INFRASTRUCTURE POWER (4/5) As of March 2015, BSES Yamuna distributed power to around 1.35 million customers in Central and East Delhi. Moreover BSES Rajdhani accounts for a customer base of 1.85 million customers in the areas of South and West Delhi. Power distribution in Delhi DISCOM 3 DISCOM 1 TPDDL distributes power to around 1.35 million customers spread over a 510 sq km area in North and Northwest Delhi. DISCOM 2 NDMC serves around 70,000 customers in New Delhi, while MES serves around 10,000 customers in Delhi cantonment. 27

28 PHYSICAL INFRASTRUCTURE POWER (5/5) According to Delhi state s budget , the following announcements have been made: In order to set up 400/220 KV grid sub-stations and transmission lines, which is planned by Delhi Transco Limited, the state government proposed to invest US$ million. The state government of Delhi announced plans to increase the solar power capacity of the state from 7 MW in to 14 MW by the end of Owing to gas shortage, the state government of Delhi is planning to shift its interest towards coal-based plants. The state government announced plans to increase the share of coal-based plants from 1,000 MW to 4,000 MW in the coming years. 28

29 PHYSICAL INFRASTRUCTURE TELECOM According to Telecom Regulatory Authority of India (TRAI), Delhi had nearly million wireless subscribers and 3.14 million wire-line subscribers as of May As of May 2015, tele-density in Delhi was per cent, the highest in the country and the state had 538 post offices with 2,205 letter boxes. The state had 64,300,00 broadband subscribers as of March The state had 538 post offices as of July Contribution of rural mobile phones to overall phones in Delhi, increased from 4.9 per cent in March 2013 to 5.2 per cent in March Telecom infrastructure (May 2015) Wireless connections 46,027,009 Wireline connections 31,460,08 Broadband subscribers* 64,300,00 Post offices 577 Teledensity (in per cent) Source: Telecom Regulatory Authority of India, Delhi Economic Survey , *As of March 2014 Some of the major telecom operators in Delhi Bharti Airtel IDEA Cellular Vodafone Essar Mahanagar Telephone Nigam Limited (MTNL) Aircel Limited Reliance Communications Tata Teleservices 29

30 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE As on , under JNNURM 23 projects had been sanctioned, out of which 9 have been completed. The approved cost was US$ 1,103 million. The key projects focus on traffic management plan for designated areas, sewerage system improvements, drainage, storm water drains, roads, flyovers, road overbridges and urban renewal plans along with heritage conservation. The sewage treatment capacity in the state has increased from 590 million gallons per day to 684 million gallons per day with the addition of six new sewage treatment plants. According to the Delhi 2021 Master Plan, special emphasis has been laid on improved solid-waste management policies. The short-term goals are capacity building with respect to financial services and performance management, effecting trial runs of collection and waste-reduction schemes, developing transport, landfill sites and transfer stations for waste and focusing on biomedical and hazardous waste management programmes. With respect to traffic management, the focus of the master plan is on developing an integrated multimodal transport system, creating infrastructure for alternate transport (e.g., bicycles), creating an environment for public transport prioritisation by customers and improving suburban railway with technology upgrade. The Delhi Development Authority has approved a new land pooling policy, which is expected to result in five more subcities, such as Dwarka, Rohini and Narela, in other urban extension areas. The new policy would ensure that the private sector is involved in the development of new urban extension areas in the cities As of , about 81 per cent of total households in the state of Delhi have a piped water supply system. The total number of water connections provided by DJB increased from lakh in to lakh in About 98 per cent of the total population of Delhi is living in urban areas. The state has very strong electrification level and about 99% of the households have access to sanitation facilities. Source: JNNURM, Ministry of Urban Development, Delhi State Budget,

31 DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS (1/4) Project name Type Sector Modernisation of Delhi International Airport PPP Transport PPP Water sanitation PPP Transport PPP Transport Roadways connecting Delhi-Saharanpur-Yamunotri PPP Transport Dayabasti Grade Separator Project Non-PPP Transport Tughlakabad-Palwal DL Railway Line Project Non-PPP Transport Road Upgradation (Mehrauli-Gurgaon) Project Non-PPP Transport Delhi-Shahdara-New Delhi Yamuna Railway Bridge Non-PPP Transport New Delhi-Tilak Bridge V & VI Railway Lines Non-PPP Transport Elevated Road (Barapulla Nalla) Project - Package II Non-PPP Transport Integrated Municipal Waste Processing Complex at NDMC Compost Plant site Okhla Development of Integrated Multilevel Parking Infrastructure at 3 sites in NDMC Area Multilevel Automated car parking cum commercial complex, Kamla Nagar, New Delhi Stage Under construction Under construction Under construction Under construction Under construction Under construction Under construction Under construction Under construction Under construction Under construction Project cost (US$ million) 1, Source: DEA, Ministry of Finance, Government of India 31

32 DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS (2/4) Project name Type Sector Stage Project cost (US$ million) Flyover (GT Road) Project Non-PPP Transport Under construction NA Freight Handling Terminal (Bijwasan) Project Non-PPP Transport Under construction 9.80 R-U-B (Rajasthan Udyog Nagar) Project Non-PPP Transport Under construction Construction of Indian Aviation Academy at New Delhi. Non-PPP Social and commercial infrastructure Under construction Minto Road (New Delhi) Project Non-PPP Transport Under construction NA Lecture Theatre & Lab (Hauz Khas) Non-PPP Under construction NA Extension Building to Parliament House Annexe Non-PPP Under construction NA Office Building For Ministry of HRD Non-PPP Under construction NA Head Office Building (Dwarka) Non-PPP Under construction NA Additional Complex For Supreme Court Of India (New Delhi) Non-PPP Under construction NA New Office Building (Supreme Court of India) Non-PPP Under construction NA Vikas Puri-Meera Bagh Corridor Project Non-PPP Under construction Social and commercial infrastructure Social and commercial infrastructure Social and commercial infrastructure Social and commercial infrastructure Social and commercial infrastructure Social and commercial infrastructure Transport Source: DEA, Ministry of Finance, Government of India 32

33 DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS (3/4) Project name Type Sector Stage Project cost (US$ million) Mangolpuri-Madhuban Chowk Corridor Project Non-PPP Transport Under construction Madhuban Chowk-Mukarba Chowk Corridor Project Non-PPP Transport Under construction Mukarba Chowk-Wazirabad Corridor Project Non-PPP Transport Under construction Mukarba Chowk-Wazirabad Corridor Project (7.0 KM) Non-PPP Transport Under construction Prembari Pul-Azadpur Corridor Project Non-PPP Transport Under construction Elevated road (Barapullah Nallah) Phase II Non-PPP Transport Under construction Parallel Flyover (BJ Marg) Non-PPP Transport Under construction District Court (DDU Marg) Non-PPP Under construction NCC Bhawan (Rohini) Non-PPP Under construction 8.02 Water Supply Improvement (Malviya Nagar) Pilot Project PPP Water sanitation Under construction Water Supply Improvement (Mehrauli) Project PPP Water sanitation Under construction Water Supply Improvement Scheme (Nangloi) PPP Water sanitation Under construction Social and commercial infrastructure Social and commercial infrastructure Source: DEA, Ministry of Finance, Government of India 33

34 DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS (4/4) Project name Type Sector Stage Project cost (US$ million) Solid Waste Management (Shahdara) Project PPP Water sanitation Under construction 2.99 Upgradation Of ISBT Kashmere Gate Non PPP Transport Under construction Grade separator (Rani Jhansi) Non PPP Transport Under construction Purina Quila Road Remodeling Drainage Project Non PPP Water sanitation Under construction Subhash Nagar Remodeling Drainage Project Non PPP Water sanitation Under construction Road upgradation (Pushp Vihar-Sheikh Sarai) Project Non PPP Transport Under construction Delhi-Chandigarh Expressway Project Non PPP Transport Terminated Bus queue shelters PPP Transport Terminated NA Source: DEA, Ministry of Finance, Government of India 34

35 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (1/4) Industrial clusters in Delhi SEZs Narela Industrial Complex IT and ITeS SEZ-Baprola Bawana Industrial Area Kirtinagar Industrial Area Gems and Jewellery SEZ-Baprola Mangolpuri Industrial Area Naraina Industrial Area IT Park, Shastri Park, DMRC INDEX Operational SEZ Location Industrial Area Location Okhla Industrial Area Under construction 35

36 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (2/4) On the industrial infrastructure front, the state has undertaken a number of development initiatives such as redevelopment of industrial clusters and maintenance of industrial areas under the Public-Private Partnership (PPP) model. The state government has initiated a set of prestigious projects, including those in industrial infrastructure for specific sectors, through the Delhi State Industrial and Infrastructure Development Corporation Limited (DSIIDC). Narela Industrial Complex SEZs in Delhi-NCR region SEZ City Sector DLF Cyber City Gurgaon IT/ITeS DLF Limited Gurgaon IT/ITeS Gurgaon Info Space Ltd Gurgaon IT/ITeS Unitech Reality Projects ltd. Gurgaon IT/ITeS Noida IT/ITeS Mose Baer SEZ Greater Noida Non-conventional energy including solar energy equipment/cell Wipro Ltd Greater Noida IT/ITeS NIIT Technologies Ltd Greater Noida IT/ITeS Aachvis Softech Pvt Ltd Noida IT/ITeS Noida SEZ Noida Multi-product HCL Technologies DSIIDC has developed 612 acres of land in Narela. The first phase of construction of 1,800 plots is complete. The construction of facility centres providing shops and commercial spaces has already been completed. About 50,000 trees have been planted in the complex. An area of 10 acres covered under the central park is proposed to be developed as central plaza. Of the remaining land available in the estate, 70 acres is proposed to be utilised for relocation of industries. There is also a proposal for construction of a high-tech estate for ITeS in an area of 50 acres available in the complex. Source: dsiidc.org Source: india-briefing.com 36

37 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (3/4) Major industrial areas in Delhi Description Kirtinagar Industrial Area Kirtinagar Industrial Area is located in the western part of Delhi and has been developed by the DSIIDC. Mangolpuri Industrial Area Mangolpuri Industrial Area is located in the western part of Delhi and has been developed by the DSIIDC. Naraina Industrial Area Naraina Industrial Area is located in the western part of Delhi. It was set up by the Delhi Development Authority (DDA) in It occupies a place of pride among the industrial estates in Delhi and is divided into two phases with around 1,200 industrial units, which manufacture electronic and electrical goods, engineering goods, plastic goods, readymade garments and sanitary fittings. Okhla Industrial Area Okhla Industrial Area is located in the southern part of Delhi and is a hub of industrial activity. Many export houses are located in the area along with some prominent multinationals such as Oriflame, Reckitt Benckiser etc. Bawana Industrial Area Bawana Industrial Area is located in the northern part of Delhi, where DSIDC will develop 15,250 plots of square metres each by Source: dsiidc.org, indiainbusiness.nic.in 37

38 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (4/4) The Delhi Metro Rail Corporation Limited (DMRC) has conceptualised and developed a world class IT park complex named Delhi IT Park comprising IT Park Block-1 (operational), IT Park Block-2 (Operational) and IT Park Block-3 (Operational since 2011). The complex is situated very close to Shastri Park metro station Upcoming SEZs at Baprola SEZ for IT and ITeS With a parking space for about 800 cars, its connectivity by both road and Metro is vital, enabling the creation of the IT hub close to the urban centre of Delhi. Around 28 per cent of the project was financed through equity contributions subscribed equally by the central and state government. IT Park Block-1 has the distinction of being 'Delhi's First IT Park'. It is a fully air-conditioned building equipped with several facilities and state-of-the-art technical systems. This building has been in operation since April IT Park Block-2 is an improved version of IT Park Block1. Additionally, it is technologically advanced and compliant with National Buildings Code, SEZ for Gems and Jewellery The IT and ITeS SEZ is being set up in an area of 26 acres at an estimated cost of US$ 86.6 million. The SEZ is expected to provide direct employment to 36,000 people while generating 108,000 jobs indirectly. The IT SEZ will also house convention halls, hotels, a hospital and residential accommodation. It is being set up over an area of 41.4 acres at an estimated cost of US$ million. The SEZ is expected to provide direct jobs to 18,000 people and indirect employment to 54,000 people. Source: 38

39 SOCIAL INFRASTRUCTURE EDUCATION (1/2) Delhi has a literacy rate of 86.2 per cent, the male literacy rate is per cent and the female literacy rate is per cent. Recognised universities As of , there were 2,657 pre-primary and primary schools, 728 middle-level schools and 2,016 senior and senior secondary schools in Delhi. As of , the total number of students enrolled in educational institutes was 4.18 million. Out of the total enrolled students, 1.83 million was enrolled in primary schools, 1.11 million in middle schools and 1.24 million in senior and senior secondary schools. Category Delhi University Jawaharlal Nehru University Jamia Millia Islamia University Guru Gobind Singh Indraprastha University Indira Gandhi National Open University In the budget, the state government announced plans to launch Wi-Fi services in all colleges and rural areas of Delhi. Government has planned to invest US$ 8.29 million for this project. Literacy rate (%) Total 86.2 Male Female Source: Census 2011, Delhi Economic Survey

40 SOCIAL INFRASTRUCTURE EDUCATION (2/2) At the intermediate college level, courses in the science, arts and commerce streams are offered. Student-teacher statistics ( ) Vocational courses are offered in the fields of agriculture, engineering and technology, home sciences, paramedical, business and commerce, and humanities. As per Budget , the state government proposed to spend US$ 1,6.31 million on the education sector. As per the budget, the state government is planning to set up 236 new schools in the state. Leading professional and degree colleges Indian Institute of Technology Delhi (IIT Delhi) Netaji Subhas Institute of Technology Delhi College of Engineering All India Institute of Medical Sciences (AIIMS) Lady Shri Ram College for Women Delhi School of Economics St Stephen's College Indian Institute of Mass Communication Indian Statistical Institute Number of students 4,194,593 Number of teachers 137,385 Student-teacher ratio Educational infrastructure ( ) Universities 10 Deemed universities 12 Institutes of national importance 3 Colleges for general education 85 Colleges for professional education 100 Industrial training institutes (ITIs) 16 Industrial training centres (ITCs) 61 Polytechnics 21 Source: Delhi Economic Survey

41 SOCIAL INFRASTRUCTURE HEALTH (1/2) Delhi has one of the best health infrastructures in the country. The state offers sophisticated medical care with the latest state-of-the-art technology for treatment. Some of the leading hospitals in Delhi All India Institute of Medical Sciences (AIIMS) Hindu Rao Hospital As of , the state had 95 hospitals, 1,389 dispensaries, 267 maternity homes, 973 polyclinics and 16 medical colleges. Dr Ram Manohar Lohia G. B. Pant Hospital Moolchand Hospital The total number of hospital beds in the state increased from 41,706 in to 48,096 in For the same period, bed population ratio increased from 2.54 to National Chest Institute National Heart Institute Rajiv Gandhi Cancer Institute & Research Centre Safdarjung Hospital Some of the leading private hospitals in Delhi Batra Hospital & Medical Research Centre Deen Dayal Upadhyay Hospital Guru Teg Bahadur Hospital Indraprastha Apollo Hospitals Fortis Escorts Heart Institute Fortis Hospital Source: Delhi Statistical Handbook

42 SOCIAL INFRASTRUCTURE HEALTH (2/2) Health infrastructure budget Key highlights for health sector in Delhi s state budget are: Initial number of beds Revised number of beds Medical college, Dwarka 700 1,500 Hospital complex at Burari New hospital complex Ambedkar Nagar Deep Chand Bandhu Hospital Hospital The proposed amount for health infrastructure in the Budget , witnessed a growth of 45% as compared to the previous budget. The proposed budget in for health infrastructure is US$ 7.94 million. The state government has announced plans to establish three new hospitals in Nangloi, Siraspur and Madipur locations with cumulative bed capacity of 1,800. In order to increase the health infrastructure in the state, the government has proposed to set up Mohalla Clinics in all major parts of Delhi. These mohallla clinics are expected to be operational by the end of Health indicators ( ) Birth rate* Death rate* 5.52 Infant mortality rate** 21.1 Source: SRS Bulletin, Delhi Economic Survey , State Budget, *Per thousand persons; **Per thousand live births 42

43 CULTURAL INFRASTRUCTURE Delhi s rich history is reflected in its forts, monuments, palaces, gardens and bazaars created by its rulers during different periods of their occupation. The remains of a large number of such historical places and monuments are the sites of attraction for visitors and tourists in Delhi. In addition to these historical places, a large number of gardens, buildings, playgrounds, institutional buildings, markets and event places were constructed by the British until 1947, and thereafter, by the Government of India and Government of Delhi. Delhi-NCR have a number of convention centres, golf courses, hotels, restaurants and recreational centres offering international standard of services. New Delhi houses the Nehru Planetarium, one of the country s five planetariums. The planetarium was built with the primary aim of promoting astronomy and invocative programs for visitors. Historical monuments in Delhi Qutub Minar Lotus Temple Humayun s Tomb Parliament House Red Fort (Lal Qila) Purana Qila India Gate Rashtrapati Bhawan Jama Masjid Safdarjung Tomb Jantar Mantar Lodi Tomb Museums in Delhi Doll Museum India Habitat Centre National Museum National Railway Museum National Science Centre Tibet House 43

44 AMRUT AND SMART CITIES On account of initiatives taken by the government, development of smart sub cities is foreseen in the state. The Central Government has agreed to the development of the project by introducing the Land Pooling Policy. The smart sub cities in the state will have access to 24 hour water and power supply along with hi speed Wi-Fi connectivity and an efficient solid-waste management system. Nearly 24,000 acres of land across areas in Najafgarh, Kanjhawala and Narela is expected to be procured for the development of sub smart cities in the state. Source: Maps of India 44

45 KEY INDUSTRIES (1/2) The location advantage, policy incentives and infrastructure in the state support investments in sectors such as IT/ITeS, Banking and Financial Services Industry (BFSI), Small Scale Industries (SSIs) and tourism activities. According to the Delhi 2021 Master Plan, the state will be promoted as a hub of clean, high-technology and skilled economic activities. Initiatives would be taken for the modernisation of existing and inclusion of new industries such as those related to IT/ITeS. The plan emphasises industrial development without effluents, smoke and noise pollution. The Industrial Policy for Delhi has the following key objectives Aims to promote Delhi as the centre of knowledge-based industrial activity and envisages new development on a public-private partnership basis. Focuses on facilitating business through procedural simplifications, e-governance measures and promotion of a transparent and business-friendly environment. Would develop world-class infrastructure within planned industrial estates to promote industrial growth. Brings commerce under Department of Industries, with the new nomenclature being Department of Industries and Commerce. This would help in bringing about balance between the commercial and industrial aspects of economic development in Delhi. Set up Centres of Excellence to promote innovation and entrepreneurship in high-technology and knowledge-based sectors. The government is encouraging activities allied to industries such as consultancy, information technology, training of skilled manpower through vocational training programmes and entrepreneurial development programmes. Source: delhi.gov.in 45

46 KEY INDUSTRIES (2/2) From to , the sectoral composition of GSDP has been inclining towards the services sector. Currently, the services sector accounts for more than 87.7 per cent of the state s income, while the industrial and agricultural sectors account for 11.4 per cent and 0.9 per cent, respectively. Key industries in Delhi BFSI Agri and processed food Construction and real estate IT and ITeS Tourism Logistics Sectoral composition of GSDP (per cent) 1.00% 0.90% 0.80% 18.4% 17.8% 17.4% 17.6% 80.5% 81.3% 81.3% % 0.90% 0.90% 16.8% 16.2% 14.2% 13.0% 12.1% 11.7% 11.4% 81.7% 82.5% 83.0% 84.8% 86.1% 86.9% 87.4% 87.7% % Service Industry 0.90% 1.00% 0.90% 0.90% Agriculture & Allied Source: Delhi Economic Survey , Central Statistics Office 46

47 KEY INDUSTRIES BANKING & FINANCIAL SERVICES SECTOR (1/4) The city is home to a number of private and public banks and financial services institutions. The service points are spread across the city. Connaught Place, Chandni Chowk and Barakhamba Road are the major points in the city where the key offices of a large number of organisations are located These business houses deal in banking transactions, documentations, negotiations, loan agreements, etc. The city also has commercial banks, industrial banks and some of the leading foreign banks. With a contribution of US$ 11.4 billion to Delhi s GSDP in FY 15 from US$ 3.7 billion in FY 05, the BFSI sector accounted for per cent of Delhi s GSDP in FY15. BFSI sector s contribution to GSDP (US$ billion) Number of bank branches (as of ) 1,573 1,882 1,773 1, SBI & Subsidiaries Other commercial bank Nationalized Bank2 Source: Delhi Statistical Handbook FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15# Source: Directorate of Economics & Statistics, Government of Delhi, #Estimates 47

48 KEY INDUSTRIES BANKING & FINANCIAL SERVICES SECTOR (2/4) Delhi represents an attractive market for the life insurance industry. New business in life insurance (US$ million) Group insurance accounted for a majority of the share in the new business in life insurance sector. However, significant growth has been reflected by the individual insurance sector. The share of individual insurance has increased from 20.4 per cent in to 23.9 per cent in Some of the key players Reliance Life Insurance Life Insurance Corporation of India State Bank of India United Bank of India Source: Directorate of Economics & Statistics, Government of Delhi 48

49 KEY INDUSTRIES BANKING & FINANCIAL SERVICES SECTOR (3/4) Reliance Life Insurance Reliance Life Insurance is an associate company of Reliance Capital Limited, a part of Reliance-Anil Dhirubhai Ambani Group. Reliance Capital is one of India s leading private sector financial services companies and ranks among the top private sector financial services and banking companies in terms of net worth. It has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. In Delhi, the insurance company has branches located at Connaught Place, Darya Gunj, Dilshad Garden, Dwarka, Janakpuri, Jhandewalan Extn., Karol Bagh, Model Town, Shakti Nagar, Lajpat Nagar, etc. The company generated revenues of US$ million in Life Insurance Corp of India The Life Insurance Corporation of India (LIC) is the largest life insurance company in India. It was founded in 1956 and is the country's largest investor. It is fully owned by the Government of India. LIC has eight zonal offices and 109 divisional offices located in different parts of India, at least 2,048 branches located in different cities and 992 Satellite Offices (SOs) and a network of over one million agents for soliciting life insurance business from the public. It has a zonal office in the northern region at Connaught Place in Delhi. 49

50 KEY INDUSTRIES BANKING & FINANCIAL SERVICES SECTOR (4/4) The State Bank of India is the country s oldest bank and largest in terms of balance sheet size, number of branches, market capitalisation and profits. The bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500 list. In Delhi, some of the branches are located at Najafgarh Village, AGCR Building, Ajmal Khan Road, Anaj Mandi Shahdara, Anand Vihar, Ansari Naagr, Asaf Ali Road, Ashok Vihar and Asian Games Village. SBI generated revenues of US$ million in State Bank of India United Bank of India United Bank of India (UBI) is one of the 14 major banks, which were nationalised in July Its predecessor, the United Bank of India Limited, was formed in 1950 with the amalgamation of four banks, viz., Comilla Banking Corporation Limited (1914), Bengal Central Bank Limited (1918), Comilla Union Bank Limited (1922) and Hooghly Bank Limited (1932). The bank has more than 1,600 branches and offices. In Delhi, the bank has branches located in Asaf Ali Road, Chandni Chowk, Chittranjan Park, Connuaght Circus, Daryaganj, etc. UBI generated revenues of US$ million in

51 KEY INDUSTRIES AGRI AND PROCESSED FOOD SECTOR (1/3) NCR is the country s biggest milk market. The organised milk market in the region, estimated at five million litres per day, is growing at 6-8 per cent annually. Some of the key players It acts as a nodal location for exchange of goods with northern parts of the country because of good connectivity and supporting infrastructure. There are nine principal markets and 12 different submarkets for trade of agricultural produce in Delhi. The main food trade markets are located in Narela, Azadpur, Morigate, Shahdara, Keshopur, Gazipur, Najafgarh and Mehrauli. Between and , GSDP from agriculture & allied activities increased from US$ million to US$ million. Mother Dairy Kohinoor Foods Ltd Hind Agro Industries Ltd Sterling Agro Industries Ltd Confederation of Indian Food Trade & Industry (CIFTI) was established in 1985 to cater to the needs of the food industry and trade. It provides institutional support to the government and the private sector in promoting the development of food processing on a global platform. Its office is situated at Tansen Marg, New Delhi. Meat production in the state has increased from 31 thousand tonnes in to 77 thousand tonnes in Source: Delhi Economic Survey

52 KEY INDUSTRIES AGRI AND PROCESSED FOOD SECTOR (2/3) Mother Dairy was set up in 1974 under the Operation Flood Programme. It is now a wholly owned company of the National Dairy Development Board (NDDB). Mother Dairy markets and sells dairy products, such as liquid milk, curd, ice creams, cheese and butter under the Mother Dairy brand, the Dhara range of edible oils and the Safal range of fresh fruits and vegetables, frozen vegetables and fruit juices, at the national level through its sales and distribution networks for marketing food items. Mother Dairy milk has a market share of around 66.0 per cent in the branded sector in Delhi, where it sells 2.5 million litres of milk daily and undertakes its marketing operations through around 1,400 retail outlets and over 1,000 exclusive outlets. Furthermore, the ice cream brand of the company has around 62.0 per cent market share in Delhi-NCR. The company has a dairy manufacturing plant at Patparganj and fruit and vegetable plant at Mangolpuri Industrial Area. It also has a distribution facility with an annual handling capacity of 200,000 tonnes of fresh fruits and vegetables. Mother Dairy Kohinoor Foods Ltd It offers an extensive range of products that cater to all kinds of consumers in different parts of the world, from basmati rice, ready-to-eat products, cook-in sauces and cooking pastes to spices, seasonings and frozen food. It has a strong market presence not only in India but also in the US, the UK, Dubai, Canada, Japan, Australia, Singapore and other European countries. It has an office in Greater Kailash in New Delhi. In , total revenue of the company was US$ 207 million. 52

53 KEY INDUSTRIES AGRI AND PROCESSED FOOD SECTOR (3/3) Hind Agro Industries Ltd has Asia s most modern abattoir-cum-meat processing plant at Aligarh in Uttar Pradesh. It is a joint venture of Hind Industries Limited and the Government of Uttar Pradesh and is assisted by the Government of India. The company has an APEDA-certified production capacity of 400 tonnes and annual turnover in excess of US$ 64.5 million. Hind Agro Industries Ltd Sterling Agro Industries Ltd Sterling Agro Industries markets its dairy products under its brands NOVA and A-ONE. The company s office in Delhi is located at Pitampura. Nova products include ghee, butter oil, butter, skimmed milk powder, full cream milk powder, dairy whitener, butter milk powder and milk powder blends. 53

54 KEY INDUSTRIES CONSTRUCTION AND REAL ESTATE SECTOR (1/3) The real estate market in Delhi is lucrative and attracts investors from India and abroad. Owing to the advanced infrastructural base, the city meets the requirements of a profitable investment. There are several infrastructure development companies located in the state. These companies are involved in construction of residential and commercial complexes, townships, power projects, hospitals, hotels, schools, roads and public utility infrastructure. In June 2015, the state witnessed the introduction of 6,000 residential units. Out of these, luxury segment houses accounted for a share of 17 per cent while the affordable and mid segment houses accounted for 58 per cent and 25 per cent respectively. In 2013, Delhi Development Authority announced its new land pooling policy, under which 40,000 acres of land will be used to build 1.5 million apartments to accommodate an additional 4.8 million of population by This is likely to help in stabilising the rising property prices in NCR areas such as Gurgaon, Noida and Ghaziabad. The Indian government has allowed FDI of up to 100 per cent in the real estate sector through the automatic route. Real estate & construction sector s contribution to GSDP (US$ billion) In May 2015, Sobha Limited signed an MoU with Indian Hume Pipe to develop a residential project in the Badarpur area of South Delhi Delhi Development Authority (DDA) has reduced the minimum area requirement for farmhouses to 1 acre from 2.5 acres earlier. The revised norm offers owners of an estimated 2,700 farmhouses in the city the opportunity to downsize and monetise their surplus property. Source: Delhi Economic Survey

55 KEY INDUSTRIES CONSTRUCTION AND REAL ESTATE SECTOR (2/3) DLF Ltd DLF is primarily a real estate developer, rated as India's largest construction company in the sector. Its primary business is the development of residential, commercial and retail properties. DLF has been in this industry for over 60 years, and has developed homes, offices, malls, SEZs, hotels and infrastructure projects. DLF developed some of the first residential colonies in Delhi such as Krishna Nagar in East Delhi. It started off with its first landmark real estate development project Qutub Enclave (DLF city) and then proceeded to build the Gurgaon township. Now, it has pan-india presence, with its properties being developed at almost all the Tier I and II cities of India. In Delhi, in the commercial sector, DLF has built infrastructure in Vasant Kunj, Saket and Mayur Vihar. It has also developed some office spaces. The corporate office of the company is located in Delhi. In , the total revenue of the company was US$ 1.35 billion. Unitech Established in 1972, Unitech has operations across 22 cities in the country. The company has ventured into constructing power transmission lines, highways, theme parks, steel plants, residential dwellings, indoor stadiums and hotels. Unitech was the first real estate developer to have been certified ISO 9001:2000 in North India. In Delhi, Unitech s noteworthy achievements include the Rohini amusement park, which is spread over 62 acres in Northwest Delhi. The project encompasses a shopping mall, Metrowalk, spread across 200,000 sq ft, an adventure island, a world-class amusement park and a water park. The registered office of the company is located in Delhi. In , the total revenue of the company was US$ 0.57 billion. Unitech has successfully entered the North Africa and Middle East real estate market. The company boasts of long relationships with internationally acclaimed architects and design consultants, including SOM (USA), BDP (UK), Maunsell AECOM (HK), MEA Systra (France), Callison Inc (US), FORREC (Canada), SWA and HOK (US). 55

56 KEY INDUSTRIES CONSTRUCTION AND REAL ESTATE SECTOR (3/3) Parsvnath Developers Ltd is one of India s leading real estate developers, with pan-india presence across 44 cities in 15 states. Parsvnath Developers Limited has a diversified portfolio, which includes integrated townships, group housing, commercial complexes, hotels, IT parks, Build-Operate-Transfer (BOT) projects, SEZs and third-party contracting. The company has successfully completed 55 projects and has a total developable area of over million square feet across real state verticals. The company is currently working on 50 projects, which span a total area of million square feet. In , the total revenue of the company was US$ million. Parsvnath Developers Ltd is an ISO 9001, and OHSAS certified company. Parsvnath Developers Ltd Ansal API Supertech Limited One of the oldest real estate developer companies in the NCR, Ansal API has ventured into retail shopping malls, township development, hotels, clubs, facilities management, etc. In , the company posted revenues of US$ million. Ansal has made large deals in residential and commercial properties located in Delhi-NCR, UP, Haryana, Punjab, Rajasthan, etc. The company has completed several residential buildings such as Gauri Sadan, Upasana at Hailey Road and Dhawan Deep on the Jantar Mantar Road at Connaught Place in New Delhi. The company has constructed the Ansal Plaza shopping mall in South Delhi, apart from several landmark high-rise commercial buildings such as the Statesman House. Has converted more than 33 million sq ft of residential and commercial entities. With 38 on-going projects worth INR180 billion at hand, the company has over 90 million sq ft under construction. Some of the upcoming projects are Ecovillage, Arraville and Romano. 56

57 KEY INDUSTRIES IT, ITES AND OTHER KNOWLEDGE-BASED INDUSTRIES (1/2) There are a number of software companies in Delhi. These organisations are involved in the businesses of Enterprise Resource Planning (ERP), Structured Query Language (SQL) server, Document Management Systems, Customer Relationship Management (CRM), software development, Active Server Pages (ASP), web development, online office automation, etc. E-commerce companies in Delhi offer services such as registration of domain names, tele-billing, electronic signatures and web hosting. NASSCOM, the premier trade body and the chamber of commerce of the IT and BPO industry in India, is headquartered in New Delhi. The members of the association account for over 95.0 per cent of the industry s revenues and employ over 2.24 million professionals. Enabling institutions such as Software Technology Parks of India (STPI), a society set up by the Ministry of Information Technology, Government of India, for encouraging, promoting and boosting software exports from India, is located in New Delhi. As per the new Industrial Policy for Delhi , the government is keen on developing and promoting the hi-tech, sophisticated, knowledge-based IT and ITeS industries in the state. For this, the government has planned to set up Centre of Excellence to promote innovation and entrepreneurship in the sectors. Evidently, the state government has formally approved two SEZs for IT at Shastri Park and Village Baprola, Delhi. Crown Business Park on Delhi-Badarpur border has come up, helping the IT boom in the region. 57

58 KEY INDUSTRIES IT, ITES AND OTHER KNOWLEDGE-BASED INDUSTRIES (1/2) Snapdeal Snapdeal is an online marketplace headquartered in New Delhi. The company started its operations in 2010 as a daily deal platform company. However in 2011, company expanded its operation to become an online market website. The company has around 9,000 employees and is offering more than 10 million products. Jabong Jabong was set up in January 2012 and is headquartered at Gurgaon, India. Apparel, shoes, accessories, beauty and home accessories are the highly popular products supplied by the company. It is marketing its products primarily through the digital media. As of , the company has 1,500 employees, and the count is expected to reach 3,000 by Makemytrip is an Indian online travel company, incorporated in 2000 and headquartered in Gurgaon. Apart from online services, the company also operates through 59 retail stores across 37 cities in India. The revenue of the company has increased from US$ million in to US$ million in Makemytrip has about 1,800 employees. In April 2015, the company acquired My Gola, a travel guide start-up company. Makemytrip Source: Company Website & Annual Report 58

59 KEY INDUSTRIES IT, ITES AND OTHER KNOWLEDGE-BASED INDUSTRIES (2/2) Lenskart Yepme Founded in 2010, Lenskart is an Indian online portal company for eyewear products. It is supplying a wide range of sunglasses, eyeglasses and contact lenses and has more than 900 employees. In 2014, Lenskart introduced its first franchisee store in Chandigarh. As of January 2015, the company had 49 stores in 29 cities of India. Yepme is an online shopping company with headquarters in Gurgaon, Haryana. It was incorporated in April 2011 and is engaged in the sales of garments and accessories. The company delivers about 5lakh units every month to its customers and services over a thousand cities.. Source: Company Website & Annual Report 59

60 KEY INDUSTRIES TOURISM (1/2) Owing to its geographic advantage, Delhi is a key arrival point for foreign tourists. During 2014, the state registered the highest foreign tourist arrivals (FTA) in India at 2.31 million (10.38 per cent of the total FTA in India). Delhi is among the top tourist destinations in India. The number of domestic tourists visiting the state is gradually rising. It grew from million in 2012 to million in Also in 2012 and 2013, two proposals for the development of tourism sites were sanctioned by the central government. The Delhi government has been developing the tourism sector to attract both domestic as well as the foreign tourists. In 2015, the state government announced plans to initiate free Wi-Fi in Delhi. To begin with, in August 2015, a free trial of the free Wi-Fi service for 20 minutes was provided to the visitors to Delhi Haat at INA. The metropolitan city of Delhi has always been among the main tourist attractions of the country. Some of the famous tourist places of the state are Akshardham Temple, Azad Hind Gram, Bahai Temple, Birla Mandir, Dilli Haat, Garden of Five Senses, Humayun's Tomb, India Gate, Jama Masjid, Jantar Mantar, Lodi Tomb, Parliment House, Purana Quila, Qutab Minar, Safdarjang Tomb and Red Fort. Tourist arrivals in Delhi (in millions) Foreign Tourists 2014 Domestic Tourists Source: Ministry of Tourism Amount sanctioned for the development of tourism (in US$ million)

61 KEY INDUSTRIES TOURISM (2/2) The metropolitan city of Delhi has always been the main tourist attraction of the country. The famous tourist places of the state are Akshardham Temple, Azad Hind Gram, Bahai Temple, Birla Mandir, Dilli Haat, Garden of Five Senses, Humayun's Tomb, India Gate, Jama Masjid, Jantar Mantar, Lodi Tomb, Parliment House, Purana Quila, Qutab Minar, Safdarjang Tomb and Red Fort. In July 2015, Ministry of Tourism, Government of India in partnership with FICCI and Tourism Finance Corporation of India has organized first ever Tourism Investors Meet in Delhi. Tourism Investor Meet (participant sectors) Hotels Real estate developers Film studios Airport developers Multiplexes and malls Mega convention centres Roadways developers Heli & air services Hospitality management institutes Sound & light shows organizers Yoga & ayurveda centres Cruise & river tourism Sanitation & civic amenity developers IT enabled service providers for tourism Desert safari Theme parks/amusement parks Food chains/ food parks Night safari providers Golf course developers Camp tourism Investors in monument conservation lighting maintenance Cable car Express way consultant Tech backed cab services 61

62 SINGLE-WINDOW APPROVAL MECHANISM The Delhi government has set up a Business Facilitation Council (BFC) to facilitate single-window clearances from various departments for establishing industrial enterprises in a time-bound manner. The BFC is headed by the Secretary and Commissioner (Industries) with the Joint Commissioner (Industries) as its member secretary. It will be operated through the BFC cell headed by the Joint Commissioner of Industries. The major objective of the BFC is to facilitate entrepreneurs in obtaining clearances from various departments/agencies in a time bound and efficient manner for setting up industrial enterprises. BFC will be the single point contact for entrepreneurs until Part-II of the entrepreneur memorandum is received and production is commenced. Senior functionaries of concerned departments such as the Department of Industries, Delhi Pollution Control Committee, Trade & Taxes Department, Electricity Distribution Companies, Municipal Corporation of Delhi, Labour Department, Delhi Fire Service Department, Drug Controller, District Magistrate, Delhi State Industrial and Infrastructure Development Corporation Limited, and Excise Department will be the nodal officers. These nodal officers shall ensure that the applications received by their departments are processed without any undue delay. 62

63 KEY APPROVALS REQUIRED (1/5) Approvals and clearances required List of procedures Registration for starting a new business Departments Estimated time Obtain Director Identification Number (DIN) online from the Ministry of Corporate Affairs portal (national) 1 day Obtain digital signature certificate online from private agency authorised by the Ministry of Corporate Affairs (national) 3 days Reserve the company name online with the Registrar of Companies (ROC) (national) Stamp the company documents at the State Treasury (state) Get the certificate of incorporation from the Registrar of Companies, Ministry of Corporate Affairs (national) Authorised agent 2 days 2 day ROC 5 days Source: 63

64 KEY APPROVALS REQUIRED (2/5) Approvals and clearances required List of procedures Make a seal (private) Obtain a Permanent Account Number (PAN) from an authorised franchise or agent* Registration for starting a new business Departments Estimated time 1 day Authorised agent Obtain a Tax Account Number (TAN) for income taxes deducted at source from an authorised franchise or agent* 12 days 12 days Register for Value-Added Tax (VAT) at the Commercial Tax Office (state)* 9 days Register with Employees' Provident Fund Organisation (national)* Central and state excise Register for medical insurance at the regional office of the Employees State Insurance Corporation (national)* 13 days 15 days Source: *Parallel activity 64

65 KEY APPROVALS REQUIRED (3/5) Approvals and clearances required List of procedures Obtaining construction permit Departments Estimated time Obtain no-due tax certificate from the House Tax Department (municipal) Obtain no-objection certificate regarding land use as per master plan/zonal plan (municipal) Notarise the affidavit/undertaking (private sector)* House Tax Department 18 days Apply for building permit at the Municipal Corporation of Delhi (MCD) Receive inspection of the site by the Municipal Corporation of Delhi (municipal) Obtain building permit from the Commissioner of the Municipal Corporation of Delhi (municipal) MCD, Delhi Hire an independent electricity contractor and obtain load approval (private) Apply for permanent electricity connection with the BSES (private) Receive on-site inspection by BSES (private) BSES 67 days 3 days Source: *Parallel activity 65

66 KEY APPROVALS REQUIRED (4/5) Approvals and clearances required List of procedures Obtaining construction permit Departments Estimated time Receive inspection by an engineer from the Municipal Corporation of Delhi at the plinth level File completion certificate and apply for occupancy permit at the Municipal Corporation of Delhi (municipal) Receive final inspection of the construction by the Municipal Corporation of Delhi (municipal) Obtain occupancy permit from the Municipal Corporation of Delhi (municipal) MCD, Delhi 33 days Apply for permanent water and sewerage connections to Delhi Jal Board (municipal) Apply for permanent phone connection at Bharat Sanchar Nigam Limited (national)* Receive an initial on-site inspection from Delhi Jal Board (municipal)* Obtain permanent water and sewerage connection from the Delhi Jal Board Obtain permanent electricity connection from BSES (private)* Obtain phone connection (with inspection) from the BSNL (national)* Respective authorities 63 days Source: *Parallel activity 66

67 KEY APPROVALS REQUIRED (5/5) Approvals and clearances required Registering property in New Delhi List of procedures Estimated time Check for encumbrances at the office of the sub-registrar of assurances (state) 3 days Pay the stamp duty at the State Treasury and obtain stamp paper (state) 2 days The final sale deed is prepared by the buyer or his lawyer (private)* Execute and register the final sale deed at the office of subregistrar (state) Apply to the circle revenue office for mutation of the property title (state) 11 days 40 days Source: *Parallel activity 67

68 REGISTRATION - SMALL SCALE INDUSTRIES Small-scale industries registration has been simplified and replaced by memorandum under the MSMED Act Furthermore, filing of the memorandum is optional for micro, small and medium manufacturing enterprises, and micro and small service enterprises. The MSMED Act 2006 defines Manufacturing enterprises in terms of investment in plant and machinery, excluding land and buildings Service enterprises in terms of investment in equipment Classification Manufacturing Service Enterprise Investment Filling memorandum Micro enterprise US$ 0.05 million Optional Small enterprise US$ million Optional Medium enterprise US$ million Optional Micro enterprise US$ 0.02 million Optional Small enterprise US$ million Optional Medium enterprise US$ million Mandatory 68

69 KEY INVESTMENT PROMOTION OFFICES State Level Export Promotion Committee (SLEPC) has been constituted to draw export policy and action plan and approve infrastructure projects for financial assistance under Assistance to States for Developing Export Infrastructure and Allied Activities (ASIDE) scheme of Central Government. DSIIDC is responsible for the distribution of funds to the developer agency under the ASIDE scheme upon approval of a project. Key agency Description Delhi Financial Corporation This organisation provides financial assistance industrial and commercial activities in the state. Delhi State Industrial and Infrastructure Development Corporation Limited (DSIIDC) It is involved in providing infrastructure and marketing facilities to industries. Delhi Khadi and Village Industries Board It offers financial assistance to specific types of small scale industries (khadi and village industries). The Department of Industries, Government of NCT of Delhi This organisation serves as the nodal agency to plan, promote and develop industries in the state. for 69

70 CONTACT LIST Agency Contact information Delhi Financial Corporation (DFC) Plot No 37 and 38, Institutional Area, Pankha Road, D-Block Janakpuri, Delhi Phone: Fax: Delhi State Industrial Development Corporation Limited (DSIIDC) N-Block, Bombay Life Building, Connaught Circus, New Delhi Phone: Website: Delhi Khadi and Village Industries Board Delhi Financial Corporation Building, 5th Floor, Nigam Bhawan (Old Hindu College), Kashmere Gate, Delhi Phone: md-dkvib@nic.in Website: Department of Industries, Government of NCT of Delhi Office of the Commissioner of Industries, Udyog Sadan, Plot No - 419, F I E Patparganj, Delhi

71 COST OF DOING BUSINESS IN Parameter Cost estimate Commercial office space cost (per sq ft) US$ 130 to US$ 965 Labour cost (minimum wages per day) Skilled: US$ 4.6 Semi-skilled: US$ 4.1 Unskilled: US$ 3.7 Commercial: US$ 0.13 to US$ 0.15 Industrial: US$ 0.11 to US$ 0.14 Power cost (per kwh) Residential rent (per sq ft per month) Five-star hotel room (per night) Water (per 1,000 litres) US 23 cents to US 105 cents US$ 190 to US$ 415 Industrial: US cents to US cents Source: Delhi Electricity Regulatory Commission, Delhi Jal Board, Government of National Capital Territory of Delhi, Ministry of Labour and Employment, Government of India, Industry sources 71

72 STATE ACTS & POLICIES (1/3) Industrial Policy for Delhi Objectives The Industrial Policy for Delhi aims to make Delhi a hub of clean, high-technology and skilled economic activities by 2021 by adhering to the following basic principles: Encouraging cluster development of hi-tech and skilled industries through public private partnership. Infrastructure development. De-congestion. Promoting walk to work. Simplifying business. Industry consultation in decision making and sustainability. Promoting knowledge-based industries. Read more New Land Pooling Policy Objectives Delhi Development Authority has changed its land acquisition policy to develop housing. The new policy is based on the concept of land pooling, wherein the land owner transfers the land ownership rights to the designated land pooling agency. The agency develops the acquired land and later transfers a part of developed land back to the land owner. According to the new land-pooling policy: For areas of 3 20 hectares, private developers will be able to retain 40 per cent of the developed land. For areas above 20 hectares, private developers will be able to retain 60 per cent of the developed land. Read more 72

73 STATE ACTS & POLICIES (2/3) Information Technology Policy 2000 Objectives The IT policy is governed by six Es : electronic governance, equality, education, employment, entrepreneurship and economy. The policy aims to promote these six goals in an integrated and parallel fashion for the overall development of information and communication technology in the state in terms of infrastructure and usage. The policy promotes IT for masses and e-governance, and aims to create a conducive environment for the growth of the IT industry and related infrastructure. Read more Transport Policy 2002 Objectives This policy has been framed with a view to provide safe, eco-friendly, cost-effective and efficient modes of transportation through a well integrated, multimodal transport system. The policy aims to make Delhi a well-managed, clean and dynamic city, which is involved in serving its citizens efficiently. The policy focuses on encouraging a balanced modal-mix and discourages personal transport. Read more 73

74 STATE ACTS & POLICIES (3/3) Excise Policy for Objectives Collection of Excise duty at import level from wholesale licensee To cancel the current renewal system of excise licenses of hotels, restaurants and clubs. Once the payment of approved annual fee is done, the licenses will continue to function Microbreweries to function at hotels and restaurants only if they seek license To increase the sale verification limit of low-cost liquor brands from 60,000 cases (including sale in Delhi) to sale of 80,000 cases (excluding sale in Delhi) No increase in excise duty this year Read more Delhi Electricity Regulatory Commission (Demand Side Management) Regulations, 2014 Objectives Objectives To control the damage to the environment by reducing the emission of the green house gases. To guard the interests of the consumers and result in the overall decrease in tariff for all the consumers. Read more 74

75 CONFERENCES/SUMMITS FOR Summit / Conference TECHNOARETE-International Conference on Engineering and Technology(ICET-15) TECHNOARETE-International Conference on Engineering and Technology(ICET-15) Venue of Summit / Conference Date Delhi 6th September 2015 Delhi National Symposium on Women In Informal Workforce: Prospects and Challenge Delhi National Conference on Freedom of Press, Media Self-regulation and Mass Communication Ethics Delhi TECHNOARETE-International Conference on Emerging Trends in Electrical, Electronic, computer Science and Information Technology(ICEECSIT-15) Delhi II International Rit Vimarsh Conference on Gender and Violence Delhi 13th September th September th September th October th October 2015 Delhi 18th January 2016 International Conference on The Role of Social Media for Organizational Sustainability (ICROSMOS) Delhi 12th February, th International Conference of Asian Clinical Oncology Society Delhi 8th April, 2016 ISFT 2016 Source: India Conference Alerts 75

76 EXCHANGE RATES Exchange rates (Fiscal Year) Year INR equivalent of one US$ Q Source: Reserve Bank of India 76

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