UTTARAKHAND THE SPIRITUAL SOVEREIGN OF INDIA

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2 Executive Summary Advantage State.. 4 Uttarakhand Vision Uttarakhand An Introduction... 6 Annual State Budget Infrastructure Status.. 17 Business Opportunities. 41 Doing Business in Uttarakhand State Acts & Policies. 63 2

3 EXECUTIVE SUMMARY Evolving industrialisation facilitating growth Uttarakhand has witnessed massive growth in capital investments due to a conducive industrial policy and generous tax benefits. Therefore, Uttarakhand is one of the fastest growing states in India. The state s GSDP increased at a compound annual growth rate (CAGR) of 16.03% during to Thriving tourism Hydropower generation potential The state is situated in the foothills of Himalayas. The presence of several hill stations, wildlife parks, pilgrimage places and trekking routes make Uttarakhand an attractive tourist destination. Inflow of foreign tourists into the state increased from thousand in to thousand in Uttarakhand is being developed as an energy state to tap the hydropower electric potential of over 25,000 MW. During , hydropower generation capacity in the state was recorded to be 2, MW. Forest sector on growth path Forest area covers about 68.4% of the state. The state s forest revenues increased at a CAGR of 9.5% between and and reached US$ million in Floriculture and horticulture Uttarakhand has almost all agro-geo climatic zones, which provide commercial opportunities for floriculture and horticulture. The state has 175 rare species of medicinal and aromatic plants. Source: Uttarakhand at a glance, , TechSci Research Estimates, Central Electricity Authority, Forest Department, Uttarakhand, Ministry of Tourism 3

4 ADVANTAGE: UTTARAKHAND Hydropower generation capacity of about 2, MW Favourable Growing location demand and abundant resources The state has close proximity to the national capital of Delhi, a leading market of the country and excellent connectivity with neighbouring states. Abundant natural resources due to hills and forests supporting tourism, and vast water resources favouring hydropower. Agro-climatic conditions support horticulture-based Industries. Adequate labour pool The average literacy level is high. A large pool of talented human resources is available as Uttarakhand has some of the leading educational institutions in the country. Top-notch institutes, such as IIT Roorkee and IIM Kashipur, are located in the state. Advantage Uttarakhand Stable political environment The state has a stable political environment with successive governments that have been committed towards creating a progressive business environment. Policy and infrastructure The state offers a wide range of benefits in terms of interest incentives, financial assistance, subsidies and concessions. Uttarakhand has a strong social and industrial infrastructure, virtual connectivity with over 39,000 km of road network, two domestic airports, km of rail routes and an installed power capacity of 3, MW 1. Potential The state s hydropower potential is 25,000 MW Source: Central Electricity Authority 1 Up to November

5 UTTARAKHAND VISION 2022 Strengthen road network in urban areas and upgrade national highways. Develop two major all-weather airports with connectivity to metro cities. Quality primary education to be provided to all children. Job oriented vocational training facilities and establishment of higher education institutions. Affordable healthcare with focus on disease prevention. Provide state funded maternal and child healthcare, especially in rural areas. Promote the state as a global tourist destination by showcasing its spiritual, cultural and adventure tourism. Target 0.5 million international tourists by Health Tourism Transport Agriculture Improve yield and quality by providing irrigation facilities and latest technology. Create cold chain infrastructure and access to market intelligence for farmers. Vision 2022 Education & skill development Infrastructure Industries Environment Harness hydropower for 100% electrification in the state and supply power to other states. Connect major cities through multi-lane highways and proper roads for villages. Become a world leader in green energy by leveraging hydropower potential. Promote micro and small enterprises. Promote the state as a green economy by focusing on sectors such as IT, agriculture, tourism, hydropower and education. 100% solid waste management, waste water treatment and recycling. Source: Confederation of Indian Industry 5

6 UTTARAKHAND FACTFILE Uttarakhand has diverse geographical features ranging from snow-capped mountain peaks in the north to tropical forests in the south; its climate and vegetation vary accordingly. The state was formed in November 2000 by carving out the 13 hill-districts of Uttar Pradesh. It was formerly named Uttaranchal. Source: Maps of India Uttarakhand is located at the foothills of the Himalayan mountain ranges. The state shares borders with China (Tibet) in the north and Nepal in the east and inter-state boundaries with Himachal Pradesh in the west and northwest and Uttar Pradesh in the south. Hindi, Garhwali and Kumaoni are commonly spoken in the state. English is the medium of education in many of its schools. Parameters Capital Uttarakhand Dehradun Geographical area (sq km) 53,483 Administrative districts (No) 13 Population density (persons per sq km) 189 Total population (million) 10.1 Male population (million) 5.1 Female population (million) 4.9 Sex ratio (females per 1,000 males) 963 Literacy rate (%) 78.8 Source: Uttarakhand at a Glance, , Directorate of Economics and Statistics 6

7 UTTARAKHAND IN FIGURES (1/2) Parameter Uttarakhand All states Source Economy GSDP as a percentage of all states GSDP GSDP growth rate (%) Per capita GSDP (US$) 2,809 1,546 Physical Infrastructure TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Uttarakhand TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Uttarakhand TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Uttarakhand Installed power capacity (MW) 3, , Central Electricity Authority, as of June 2016 Wireless subscribers (No) 1 152,222,711 1,033,157,014 Internet subscribers (No) 1 37,040, ,340,000 Telecom Regulatory Authority of India, as of May 2016 Telecom Regulatory Authority of India, as of January 2016 National highway length (km) 2, , NHAI, Roads and Building Department Airports (no) Airports Authority of India 1 Including Uttar Pradesh West 7

8 UTTARAKHAND IN FIGURES (2/2) Parameter Uttarakhand All states Source Social Indicators Literacy rate (%) Census 2011 Birth rate (per 1,000 population) SRS Bulletin Investment Cumulative FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, April 2000 to March 2016 Industrial Infrastructure PPP projects completed & operational (no) 17 1,246 Operational SEZs (no) DEA, Ministry of Finance, Government of India, July 2016 Ministry of Commerce & Industry, Department of Commerce, July 2016 PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System 1 Including Uttar Pradesh West 8

9 ECONOMIC SNAPSHOT GSDP At current prices, gross state domestic product (GSDP*) of Uttarakhand stood at around US$ billion in Between and , GSDP of the state grew at a CAGR of 16.03%. GSDP of Uttarakhand at current prices (in US$ billion) Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Uttarakhand GSDP* - Economic and Statistical Organization, Government of Punjab 9

10 ECONOMIC SNAPSHOT NSDP At current prices, net state domestic product (NSDP # ) of Uttarakhand was around US$ billion in NSDP of Uttarakhand at current prices (in US$ billion) NSDP of the state witnessed growth at a CAGR of 15.34% between and Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Uttarakhand NSDP # - calculated using per capita NSDP x Population in million 10

11 ECONOMIC SNAPSHOT PER CAPITA GSDP In , the state s per capita GSDP^ was estimated at around US$ 2, GSDP per capita of Uttarakhand at current prices (in US$) The per capita GSDP increased at a CAGR of 14.83% between and , ,809 Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Uttarakhand Per Capita GSDP^ - calculated using GSDP million US$/ Population in million 11

12 ECONOMIC SNAPSHOT PER CAPITA NSDP In , the state s per capita NSDP & was about US$ 2,365. The per capita NSDP increased at a CAGR of 14.14% between and NSDP per capita of Uttarakhand at current prices (in US$) 2,365 1,323 1,618 1,821 1,697 1,714 1, ,058 1,098 Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Uttarakhand Per capita NSDP & - Economic and Statistical Organization, Government of Punjab 12

13 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP During , the tertiary µ sector s share in GSDP was 40.44%. Trade, hotels and restaurants are the largest subgroups of the sector, and registered strong growth in comparison with the previous year. The secondary µ sector witnessed the fastest growth of 21.89%, followed by the tertiary sector (13.91%) and primary µ sector (10.01%) between to The share of the secondary sector in GSDP was 46.48% in ; majorly driven by the growth in the manufacturing sector. GSDP composition by sector CAGR % % % Primary Secondary Tertiary Source: Central Statistics Office, TechSci Research Estimates Sector-wise %share of GSDP µ - Central Statistical Organization 13

14 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION Sugarcane, wheat, rice and potato are the key agricultural products of the state. In , the total food grain production of the state was around 1.87 million tonnes. Sugarcane is the major crop produced in the state, with production of about 5.98 million tonnes in The production of oilseeds and pulses during the year was estimated to be around 23,000 tonnes and 58,000 tonnes, respectively. Crop Annual production in ( 000 tonnes) Rice Wheat Onion Pulses 58.0 Fruits Spices 41.0 Vegetables 1,110.0 In November 2015, the state government of Uttarakhand signed a Memorandum of Understanding (MOU) with The Hans Foundation (THF) for the launch of initiatives and development projects in agriculture sector in addition to health, education, forest, water, sanitation and welfare of the handicapped. As per state budget , the Government of Uttarakhand proposed a new scheme of Madhav Singh Bhandari Krishi Syebhagita Yojna, which would boost cooperative farming in the state during Source: Indian Horticulture Database, National Horticulture Board, Directorate of Economics & Statistics Department of Agriculture & Cooperation 14

15 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to the Department of Industrial Policy & Promotion (DIPP), the cumulative FDI inflows, during April 2000 to March 2016, stood at around US$ 563 million 1. FDI equity inflows, to (US$ million) Exports from the state reached US$ 1.41 billion in , reflecting a growth of 8.1% in comparison to Investment intentions in terms of IEMs filed, LOIs/DILs issued 1 6, Source: Department of Industrial Policy & Promotion 1 Including Uttar Pradesh 2 Data for May , , , , , ² Number of Investment Intentions Proposed Investments (US$ Million) 15

16 ANNUAL BUDGET Uttarakhand s government has a total expenditure of US$ 6,175.1 million for the year Sector Budget (US$ million) Revenue receipts 4,930.6 Capital receipts 1,166.5 Total receipts 6,097.2 Non plan expenditure 3,741.3 Plan expenditure 2,433.8 Total expenditure 6,175.1 Source: Department of Budget, Government of Uttarakhand *Exchange rate of US$ 1 = INR

17 PHYSICAL INFRASTRUCTURE ROADS The other 2 projects under Hybrid Annuity are: Four-laning of Rampur-Kathgodam (PKG-II), at a proposed amount of US$ million and 4-laning of Chultmalpur-Ganeshpur and Roorkee-Chutmalpur-Gagalheri, at a proposed amount of US$ million. Source: Maps of India PWD, BRTF, local bodies and the prominent authorities in the state for the maintenance of roads. During , a total of 4 projects were awarded by NHAI (National Highways Authority of India), under EPC and Hybrid Annuity. The 2 projects awarded under EPC were four-laning of Haridwar-Nagina, at a proposed amount of US$ million and four laning of Nagina Kashipur, at a proposed amount of US$ million. In 2016, the Centre announced that it would widen the existing 900-km highway connecting the four abodes of Gangotri, Yamunotri, Kedarnath and Badrinath in the Himalayas, at an investment of US$ 1.85 billion. Vehicle category Number of vehicles- March 2015 Two wheelers 1,387,457 Cars/jeeps 311,908 Buses 10,227 Trucks 26,827 4 wheeler loader/delivery van 34,983 Taxi 34,449 Auto tempo 18,293 Tractor 65,953 Trailors 6,525 Others 4,340 Total 1,900,962 Source: Ministry of Road Transport & Highways, NHAI, State Transport Department 17

18 As of , Uttarakhand had km of rail routes. The state is focusing on increasing the share of railways in cargo and passenger transport. Initiatives have been undertaken to start monorails at Dehradun, Haridwar and Rishikesh, on the inter-city linkage routes. The main railway stations in the state are Dehradun, Haridwar, Roorkee, Kotdwar, Kashipur, Udham Singh Nagar, Haldwani, Ramnagar and Kathgodam As per State Budget , the state government proposed a one tine grant for development of Uttarakhand metro and building corporation. Rishikesh-Karanprayag rail project is being set up in the state at an estimated cost of US$ 2.29 billion and is expected to be completed in the next five years. PHYSICAL INFRASTRUCTURE RAILWAYS In 2016, the Government of Uttarakhand inked a pact with the Delhi Metro Rail Corporation for introducing metro rail in the state. The Memorandum of Understanding (MoU) for preparing the detailed project report for the Haridwar- Rishikesh-Dehradun Metro rail project was signed between the Uttarakhand Urban Housing Development Authority (UUHDA) and DMRC, and an initial amount of US$3.1 million has also been paid. Source: Maps of India 18

19 PHYSICAL INFRASTRUCTURE AIRPORTS The state has two domestic airports: one at Jolly Grant in the Dehradun district and another at Pant Nagar in the Udham Singh Nagar district. Due to the hilly terrain, the government has proposed the construction of at least one helipad per district. The state intends to position air transport as a reliable all-weather transport option for the hills. With Uttarakhand emerging as a hot tourist and industrial destination, the state government is focussing on upgrading the Jolly Grant airport as an international airport, in coordination with Airports Authority of India. During , the Dehradun airport handled 94 tonnes of freight. At the domestic airport located in Pantnagar, aircraft movement and passenger traffic stood at 332 and 7,916 respectively, during Domestic airport Source: Maps of India Dehradun aircraft movement (nos.) Dehradun passenger traffic (nos.) 4,078 4,840 4,962 3,06,944 3,78,646 4,71, Source: Airport Authority of India, (1) April-September

20 UTTARAKHAND THE SPIRITUAL SOVEREIGN OF INDIA PHYSICAL INFRASTRUCTURE POWER (1/2) As of June 2016, the state had total installed power generation capacity of 3, MW. Hydro (renewable) power contributed 2, MW to the total installed power generation capacity of the state, followed by thermal power with a contribution of MW and other sources of power generation. Of the total installed power generation capacity, state utilities accounted for the largest share of 1, MW, followed by 1, MW under private utilities and MW under central utilities. Installed power capacity (MW) 2,383 2,405 2,455 2,527 2,561 2,615 3,177 3,269 During , the state achieved 100% village electrification, covering 15,669 villages Uttarakhand Jal Vidyut Nigam Limited (UJVNL) controls the state s hydropower generation and the state s power sector is regulated by the Uttarakhand Electricity Regulatory Commission (UERC). In January 2016, UPCL (Uttarakhand Power Corporation Ltd.) filed a petition for seeking approval from Uttarakhand Electricity Regulatory Commission for Draft Power Purchase Agreement between UPCL and 23 Grid-Connected Solar PV power project developers to implement MW Grid-connected Solar PV based power projects in the state. Under state sector, 34 projects were in operation in the state during , with total estimated potential of 3, MW. Similarly, in central sector, 3 projects, with an estimated potential of 1400 MW were under operation. Moreover, under private sector, 8 projects were under operation with total estimated potential of MW. Source: Central Electricity Authority Structure of power utilities of Uttarakhand Activity Power generation Power transmission Power distribution Company name Uttarakhand Jal Vidyut Nigam Limited (UJVNL) Power Transmission Corporation of Uttarakhand Limited (PTCUL) Uttarakhand Power Corporation Limited (UPCL) 20

21 District Garhwal zone 66/11 KV substations Nos T/F (Nos) 33/11 KV substations PHYSICAL INFRASTRUCTURE POWER (2/2) 11/0.4 substations MVA Nos MVA Nos MVA 66 KV line (in km) 33 KV Line (in km) 11 KV Line (in km) Dehrdaun , ,254 14,752 Uttarakashi , ,525 2,137 Pauri , ,084 7,937 Tehri , ,786 3,954 Chamoli , ,949 2,787 Rudraprayag , ,226 1,726 Haridwar , ,352 4,258 Total Garhwal 174 1,857 34, ,773 22,177 37,550 Kumaon zone Nainintal , ,685 4,328 U.S Nagar , ,564 4,273 Almora , ,753 5,568 Bageshwar , ,579 2,205 Pithoragarh , ,800 3,341 Total UPCL ,122 60,298 3, ,526 38,204 59,401 LT Line (in km) 21

22 PHYSICAL INFRASTRUCTURE TELECOM The state has a well-developed communication network including both wired and wireless connectivity. As per Telecom Regulatory Authority of India (TRAI), the state had 0.92 million 1 wire-line subscribers and million 1 wireless subscribers, as of May Uttarakhand State Wide Area Network (USWAN) is operational in the state. Some of the projects under Information Technology Development Agency (ITDA) Uttarakhand are National e-governance Plan (NeGP) Capacity Building Project, Common Service Centre (CSC) and State Data Centre (SDC). Telecom infrastructure (As of May 2016) Wireless Subscribers 152,222,711 Wire-line Subscribers 921,111 Internet subscribers 1 37,040,000 Teledensity (in%) Post offices 2 2,723 In November 2015, telecom operator BSNL announced to install 250 new mobile phone towers across the state in order to revamp the mobile connectivity. On October 31, 2015, the Uttarakhand Transport Corporation (UTC) in collaboration with Reliance Jio launched free internet Wi-Fi service at Haridwar bus terminal. The government plans to cover 9 more bus terminals. As on December 2015, the services at Haridwar bus terminal were free of cost, however once commercialised, the services would be chargeable after the first 15 minutes. Source: Telecom Regulatory Authority of India, 1 Including Uttar Pradesh West 2 As of June

23 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE (1/2) Under JNNURM, 14 projects costing US$ 91 million have been sanctioned for Dehradun, Nainital and Haridwar. A total of US$ million has been approved for projects under JNNURM. The state witnessed installation of 40,374 hand pumps of which 31,915 pumps was installed by the Jal Nigam in the rural areas of the state. After the flood in a few parts last year, the state has proposed a revival and rebuilding plan to invest US$ million in the next 3-5 years. The investment would focus on developing infrastructure, telecommunication, skill development and construction. Drinking water supply in Uttarakhand ( ) Inhabited villages covered (no) 15,761 Population covered (lakh) Scarcity hamlets 6,412 In 2015, the Government of Uttarakhand announced that Uttarakhand Housing and Urban Development Authority (UHUDA) and SIDCUL would collaborate to form integrated industrial townships at two land parcels of 1,000 acres and 1,500 acres in Khurpiya and Parag farms respectively. During , the Government of Uttarakhand provided drinking water facilities to 1,056 ghettos (bastis) and constructed 29,243 toilets across the state. During , the government of Uttarakhand proposed an investment of US$ million for improving the drinking water facilities in the state. Focussing on urban development, the Uttarakhand government proposed an investment of US$ million in the budget. Source: Uttarakhand at a Glance, , Directorate of Economics and Statistics, Government of Uttarakhand JNNURM, Ministry of Urban Development 23

24 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE (2/2) Project Name 28 DU's DPR for Shanti kusth Ashram (Main Basti) Dehradun, Uttarakhand 34 DU's BSUP DPR for Rotary Kussthrog Ashram. Dehradun, Uttarakhand Urban infrastructure projects under JNNURM 27 DU's DPR for Ram Mandir Kusth Ashram (Malin Basti) Dehradun, Uttarakhand 148 DU's BSUP Scheme at Kaath Bangla Slum (Malin Basti), Deharadun, Uttarakhand 240 DU's Slum Upgradation of Niranjanpur. Barhmpuri. Phase-1 Dehradun State of Uttarakhand 224 DU's BSUP DPR for Ram Nagar Slum (Main Basti). Dehradun. State of Uttarakhand Construction of 96 DU's DPR for Pandewala, Haridwar for the State of Uttarakhand, under BSUP 200 DU's Detailed Project Report (DPR) for Durgapur, Nainital, Uttarakhand Location Amount (US$ million) DUs in progress DUs completed Dehradun Dehradun Dehradun Dehradun Dehradun Dehradun Haridwar Nainital Source: Jawaharlal Nehru National Urban Renewal Mission (JNNURM) 24

25 KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS (1/2) Project name Sector Status Cost (US$ million) Door to door collection of solid waste composting and landfills at Dehradun Door to door collection of solid waste composting and landfill at Haridwar Door to door collection of solid waste composting and landfill at Nainital Water sanitation Under construction 4.07 Water sanitation Under construction 3.08 Water sanitation Under construction 1.63 Kosi bridge at Ramnagar Transport Under construction 4.31 Solid waste management (Dehradun) Water sanitation Under construction 4.08 Solid waste management project (Uttarakhand) Water sanitation Under construction 2.77 Bus stand property (Gandhi Road) Transport Under construction 4.15 Cardiac care unit at Coronational Hospital in Dehradun Social and commercial infrastructure Under construction 2.49 Balighat small hydro power project Energy Under construction 6.85 Source: Ministry of Finance, Government of India 25

26 KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS (2/2) Project name Sector Status Nephrology and dialysis unit at coronation hospital in Dehradun Nephrology dialysis unit at base hospital in Haldwani Social and commercial infrastructure Social and commercial infrastructure Cost (US$ million) Operational 0.90 Operational 0.90 Road upgradation (Haridwar-Dehradun) project Transport Under construction Road upgradation (Rampur-Kathgodam NH-87) project Transport Terminated Burthing small hydro power project Energy Under construction 5.80 Source: Ministry of Finance, Government of India 26

27 SOCIAL INFRASTRUCTURE EDUCATION As per State Budget , the Government of Uttarakhand is planning to set up Almora Residential University in the state. Additionally, Jagar University is also expected to be established in the state during Moreover, for encouraging various meritorious girl students in the state s backward classes, a new scheme Raja Vijay Singh Paritoshikh Yojna would be launched during The state has 118 diploma colleges with student enrolment reaching 26,760 as of September Moreover, the government is planning to add more seats to these colleges for which an investment of US$ million has been proposed under state budget In order to boost medical education in the state, the Government of Uttarakhand has proposed to invest US$ million. The government is planning to introduce new medical and A.N.M colleges in the state. For the growth of school education in the state, the Uttarakhand government has proposed an investment of US$ million during At an estimated cost of US$ 6.11 million, Sampark Smart Class programme was launched by the Government of Uttarakhand to improve the learning outcomes in Mathematics and English at primary level. Literacy rates (%) ( ) Literacy rate Male literacy Female literacy Source: Uttarakhand at a Glance, , Directorate of Economics and Statistics, Government of Uttarakhand, Census

28 SOCIAL INFRASTRUCTURE HEALTH Uttarakhand has a good network of hospitals and health centres. As of November 2015, the state had 287 primary health centers, 19 district hospitals, 27 sub district hospitals and 4 blood bank centers. Under Budget , the government proposed an outlay of US$ million for reproductive and child health under National Rural Health Mission in Uttarakhand, wherein, US$ 7.79 million is proposed for maternal health, US$ 0.72 million for child health, US$ 1.21 million for family planning, US$ 0.71 million for adolescent health under Rashtriya Kishore Swasthya Karyakaram Scheme, etc. As per State Budget , the state government announced its plans to reserve one special ward across all base hospitals and medical colleges of the state, for the people working in these hospitals. Hospitals in Uttarakhand as of November 2015 Hospitals Total facility Active facility Sub centres 1,889 1,866 Primary health centres Community health centres Sub district hospitals District hospitals Total 2,285 2,250 Health indicators (2015) Birth rate Death rate Infant mortality rate 2 32 Source: Directorate of Economics and Statistics, Government of Uttarakhand Sample Registration System 1 Per thousand persons, 2 Per thousand live births 28

29 CULTURAL INFRASTRUCTURE There are numerous avenues for recreation in the state, particularly in key cities such as Dehradun, Nainital and Mussoorie. There is a botanical museum in the Forest Research Institute at Dehradun. The Indian Military Academy has a museum, library, war memorial, arms and ammunition, shooting demonstration room, and an 18-hole golf course. There is another popular golf course in Ranikhet. There are several heritage hotels such as the Chevron Rosemount, Chevron Fairhavens and the Ramgarh Bungalows. There are numerous unique entertainment and adventure avenues including wildlife resorts such as Solluna resort in Nainital, Quality Inn Corbett Jungle Resort, and Tiger Camp: Camp Forktail Creek in Jim Corbett Park. As per State Budget , the state government has decided to launch Mukhya Mantri Yuva Swalamban Yojna in the state, during Youth hostels in Uttarakhand Hotel Yash, Pithoragarh Hotel Yash, Dharchula Hotel Sheela, Nainital Hotel Saina Inn, Dehradun O.G.S Tourist Home, Rishikesh Youth Hostel, Ranikhet Hotel Jim Corbett (youth hostel), Jim Corbett Administrative units Districts 13 Major hotels in Uttarakhand Hotel Jaypee Residency Manor, Mussoorie Hotel Honeymoon Inn, Mussoorie Claridges Naini Retreat, Nainital Hotel Madhuban, Dehradun Tehsils 98 Development blocks 95 Gram panchayats 7,555 Municipal corporation 06 Nagar palika parishads 31 Nagar panchayats 41 29

30 INDUSTRIAL INFRASTRUCTURE Floriculture Chaffi is a Joint Venture between the Dutch government and Uttarakhand government to manufacture and process the planting material of flowers such as chrysanthemum, tulips, zantedeschia, lilium and gladioli. The alliance aims to reduce the reliance on imports of flower bulbs and meet the demand of cut-flower growers and exporters in India. The production facility in Bhimtal, equipped with Dutch machinery and technology, has an annual production capacity of 20 million flower bulbs. Moreover, the company can produce 2 million plants annually in the tissue culture laboratory. During , Government of Uttarakhand is planning to establish industrial park for women, across 200 acres of land. Rural and small scale industries Khadi udhyog/gramodhyog 447 Small scale industries (SSI s) 25,294 Total employees of khadi units 3,853 Total employees of SSI s 63,599 Factories Number of factories 2,843 Number of workers 273,464 Source: State Infrastructure and Industrial Development Corporation of Uttarakhand Limited, News article Moreover, the establishment of new industries in Khurpia, Sitarganj, NEPA and Parag, has also been proposed by the state government in order to keep a check on migration from hills as well as for addressing and minimising the problem of unemployment, in the state. 30

31 SMART CITIES The Government of Uttarakhand proposed three smart cities: Dehradun, Haridwar and Roorkee. Out of these, the central government approved only Dehradun to be developed as a smart city on the basis of urban population and the number of statutory towns. In December 2015, the Mussoorie Dehradun Development Authority (MDDA) signed a Memorandum of Understanding (MoU) with Chinses stakeholders from Tongji University, China. The MoU is expected to be a move towards development of the Smart City Project in Dehradun. The university is a well recognized leader in town planning, architecture and designing for development of big township projects. Dehradun Roorkee Smart Cities in Uttarakhand Haridwar Cities Population Area (sq. km) Literacy rate Dehradun 1,696,694 3, % Haridwar 1,890,422 2, % Roorkee 118, % Source: TechSci Research 31

32 INDUSTRIAL INFRASTRUCTURE - INDUSTRIAL ESTATES (1/9) IT Park Dehradun Estate name Integrated Industrial Estate Pantnagar Description Ready-to-occupy hi-tech intelligent building Developed plots of varying sizes Academic zone for educational and research organizations to STPI incubation centre to promote local entrepreneurs Large tracts of land have been devoted to green areas and open spaces Habitat centre to cater to business support and recreational needs of the occupants Conference hall Training centres Guest house Travel & forex service Banks and ATM s Multi-cuisine food court Health club with gym Medical centre Serviced apartments Library and information bureau Indoor and outdoor sport facilities such as squash, tennis, badminton courts, billiards, etc. Source: State Infrastructure and Industrial Development Corporation of Uttarakhand Limited 32

33 INDUSTRIAL INFRASTRUCTURE - INDUSTRIAL ESTATES (2/9) Pharma City, Selaqui Parameter Name of industrial estate Location Total area Area available for allotment (industrial) Area allotted Connectivity Water supply Description Pharma City, Selaqui Industrial Area, Dehradun Located at a distance of 25 km from Dehradun. 225 Km from National Capital Delhi. 50 acres 30 acres 30 acres Nearest rail yard: 25 kms Nearest national highway: Located on Dehradun-Chakrata National Highway Nearest domestic airport: Jolly Grant 120 Kms Nearest international airport: Delhi 275 Kms Tube Wells: 1 Underground storage tank: 1 Overhead tank: 1 Length of distribution line: 1.2 km Source: State Infrastructure and Industrial Development Corporation of Uttarakhand Limited 33

34 INDUSTRIAL INFRASTRUCTURE - INDUSTRIAL ESTATES (3/9) IIE, Haridwar Parameter Description Parameter Description Name of industrial estate Location Total area Connectivity Water supply Power supply Integrated Industrial Estate, Haridwar Located just 3 km from Delhi-Haridwar National Highway. 225 km from National Capital Delhi 52 km from State Capital Dehradun. 2,034 acres Nearest rail yard: 5 km Nearest national highway: 3 km Nearest domestic airport: Jolly Grant 35 km Nearest international airport: Delhi 225 km Tube Wells: 4 Under Ground Storage Tank: 1 (capacity 6 MLD) Overhead tank: 1 (capacity 0.5 ML) Length of rising main: 1.05 km Length of distribution line: 46 km Financial incentives Proposed facilities Proposed industries 100% central excise exemption for 10 years 100% income tax exemption for first 5 years and 30% for next 5 years for 5 years Capital investment with a max. Of US$ million Hotel, bank, school, hospital, petrol pump, golf course etc. Cosmetics & allied Plastic & allied Apparel & allied Agro food & allied Pharma products Electrical, electronics & allied Institutional, commercial & allied Electric sub stations, 220 KV (1) 33 KV (4), 11 KV (as required) Source: State Infrastructure and Industrial Development Corporation of Uttarakhand Limited 34

35 INDUSTRIAL INFRASTRUCTURE - INDUSTRIAL ESTATES (4/9) IIE, Pantnagar Parameter Description Parameter Description Name of industrial estate Location Total area Connectivity Water supply Power supply Integrated Industrial Estate, Pantnagar Located at National Highway no. NH km from National Capital Delhi. 300 km from State Capital Dehradun. 3,339 acres Nearest rail yard: 10 km Nearest National Highway: Situated on National Highway NH-87 Nearest domestic airport: Pantnagar Nearest international airport: Delhi 235 Kms Tubewells: 2; overhead tank: 1; underground storage tank: 1 Electric sub stations 220 KV (1) 33 KV (4) 11 KV (as required) Financial incentives Proposed industries 100% central excise exemption for 10 years 100% income tax exemption for first 5 years and 30 % for next 5 years for 5 years Capital investment with a maximum of US$ million Cosmetics & allied Plastic & allied Apparel & allied Agro food & allied Pharma products Electrical, electronics & allied Furniture hub Institutional, commercial & allied Source: State Infrastructure and Industrial Development Corporation of Uttarakhand Limited 35

36 INDUSTRIAL INFRASTRUCTURE - INDUSTRIAL ESTATES (5/9) Sigaddi Growth Centre, Kotdwar ESIPL Sitarganj Parameter Name of industrial estate Location Total area Area available for allotment (industrial) Connectivity Description Sigaddi growth centre - Kotdwar, Distt. Pauri Garhwal Located 120 km from Dehradun. 200 km from Delhi. 100 acres 60 acres Nearest rail yard: Nazibabad 25 kms Nearest national highway: Kotdwar-Nazibabad National Highway Nearest domestic airport: Jolly Grant 120 km Nearest international airport: Delhi 200 km Water supply Tubewells: 1; overhead tank: 2; underground storage tank: 1 Power supply Financial incentives Electric sub stations 33/11 kv 100% central excise exemption for 10 years 100% income tax exemption for first 5 years and 30% for the next 5 years, for 5 years, capital investment with a maximum of US$ million Parameter Project location Total land area (vacant) Saleable area Total cost of infrastructure development Parameter Project location Total land area (vacant) Saleable area Description SIIDCUL phase II, IIE Sitarganj 1,760 acres IIE Kashipur 4,623,988.9 sq m US$ million Description IIE Kashipur (Escort Farm) 311 acres 804, sqm Source: State Infrastructure and Industrial Development Corporation of Uttarakhand Limited 36

37 INDUSTRIAL INFRASTRUCTURE - INDUSTRIAL ESTATES (6/9) Private industrial estates at a glance Dev Bhoomi Industrial Estate, Bantakhedi, Roorkee M/S Bheem Nagar Industrial Estate, Patti Bbhazzar, Kashipur M/S Omega Industrial Estate, Dabhora, Ahatmali, Kashipur Raipur Co-operative Industrial Area, Raipur-Bhagwanpur, Roorkee M/S Mool Chand Industrial Estate Pvt. Ltd M/S Gangapur Kashipur Industrial Area, Kashipur M/S Rajpur-Bhagwanpur Industrial Area, Bhagwanpur, Roorkee M/S Sara Industrial Estates Ltd. Shankarpur-Hukmatpur, Dehradun (Joint venture between IEL and SIIDCUL) M/S Sheel Chandra Industrial Estate, Vill. Kotha, Lalpur, Tehsil Kichha, U.S. Nagar Developed By: M/s Datt Infrastructure and Services Ltd (in joint sector with SIIDCUL) 12-D Race Course, Dehradun (Phone: , ) Promoter: M/S Jindal Ploymer Co. Pvt. Ltd., Kripa Kunj, Ramnagar Road, Kashipur, (Phone ) Promoter - Shri Vaseem Ahmed Khan, Managing Partner, 9th KM Stone, Bazpur Road, Kashipur (Phone , Mobile ) Promoter: Adarsh Industrial and Housing Co-operative,, 41-C/2, Rajpur Road, Dehradun (Phone No ) E-13/29, Harsh Bhawan, IInd Floor, Cannaught Place, Middle Circle, New Delhi. (Phone ) Facilitator: Kumaon Garhwal Chamber of Commerce and Industry, Industrial Estate, Bazpur Road, Kashipur (Phone , Mobile ) Facilitator: Indian Industries Association, Mohabewala Industrial Area, Dehradun. Contact Person: Shri Pankaj Gupta, Mobile Promoter: Shri V.K. Dhawan, 7/1, Pritam Road, Dehradun. (Phone , , Mobile ) Promoter: Shri Mohan Goyal, (Phone , , , ) Source: State Infrastructure and Industrial Development Corporation of Uttarakhand Limited 37

38 INDUSTRIAL INFRASTRUCTURE - INDUSTRIAL ESTATES (7/9) Private industrial estates at a glance M/S Kumar Industrial Co-operative Industrial Estate, Vill. Matkota, Tehsil Kichha, U.S. Nagar M/S Dabhora Industrial Estate, Dabhora Musthkam, Tehsil, Kashipur, U.S. Nagar M/S Kharmasi Industrial Estate, Kharmasi, Kashipur M/S Lakeshri Industrial Area, Lakeshri Bhagwanpur, Roorkee, Haridwar M/S AIS Industrial Estate, Vill. Khanpur Kasauli and Lathardeva Hoondth, Roorkee, Haridwar M/S Nand Nagar Industrial Estate, Vill. Mahuakheragunj, Kashipur, Udham Singh Nagar M/S K.I.E Infrastructures & Projects Pvt Ltd., Vill. Mudiyaki, Pargana-Manglore, Roorkee, Haridwar Promoter: Shri Shiv Kumar, Rampur Road, Rudrapur, U.S. Nagar. (Phone , Mobile: ) Promoter: Kumaon Garhwal Infrastructural Industrial Corporation Ltd. Gopi Kripa Kunj, Ramnagar Road, Kashipur ( Phone: ). Promoter: M/S Shivangee Crafts Ltd. Ramnagar Road, Kashipur, (Phone: , ) Facilitator: Shri Pankaj Gupta, President IIA, Dehradun (Mobile: ) Promoter: M/S Asahi India Glass Ltd. 12 Basant lok, New Delhi Promoter: Sh. Vikas Jindal, Ramnager Road, Kashipur, Mobile & Fax: nandnagar@yahoo.co.in Promoter: Sh. R.M. Khandelwal (Contact Person, Sh. Dinesh S. Panwar) Tel. No Mob.: Fax Mob gayatri_rke@hotmail.com) Source: State Infrastructure and Industrial Development Corporation of Uttarakhand Limited 38

39 INDUSTRIAL INFRASTRUCTURE - INDUSTRIAL ESTATES (8/9) M/s Shive Ganga Industrial Estate, Village- Lakeshri, Post-Bhagwanpur, Tehsil Roorkee, District Haridwar M/s Mahavir Industrial Estate, Padlipur, Lalkua (Haldwani) District-Nainital. M/s Uttam Industrial Park, Village-Mudlyaki- Kulchandi, Khundi, Dhahiyaki, Pargana- Manglore, Roorkee, Haridwar. M/s Gold Plus Integrated Industrial Estate, Village-Tharhola, Pargana-Manglore, Tehsil- Roorkee, Haridwar M/s Balaji Industrial Estate, Vill. Mahuakhedaganj, Kashipur, Udham Singh Nagar M/s salempur Rajputtan Industrial Estate, Village-Sunehra/Salempur Rajputan, Tehsil- Roorkee, Haridwar Private industrial estates at a glance Promoter: Sh. Shiv Gupta, Director, M/s Shiv Shaki Products Ltd., 295 Gujrawala Town, Part III, Delhi , (Phone , , , Fax: sgiestate@yahoo.com Promoter: Sh. C. Agarawal & Brothers, M/s G.K. Wooden & Scale Industries, Opp. G.G.I.C., Kaladhoongi Road, Haldwani (Nainital) (Phone no , Mobile ) Promoter: M/s Uttam Sugar Mills Ltd.,(Contact Person: Mr. T.K. Kandari), Libberheri, Roorkee, Haridwar (Phone no , ) Promoter: M/s Gold Plus Glass Industry Ltd., G-192 Prashant Vihar, New Delhi, Phone: , , , Fax: Mobile: Promoter: Sh. Apporva Jindal, Narain Nagar, Bazpur Road, Kashipur. (Phone: , Fax: Mobile , ) Promoter: Sh. Rajesh Singhal, Secretary, M/s Roorkee Industrial Association Near Jainith Industries, Salempur Rajputan, Roorkee, Haridwar (Mobile ) M/s Jai Prakash Associates Ltd., Vill.- Nalhedi Dehaveeran, Tehsil-Roorkee, Haridwar Promoter:Jai Prakash Associates Ltd., J.A. House-63, Source: State Infrastructure and Industrial Development Corporation of Uttarakhand Limited 39

40 INDUSTRIAL INFRASTRUCTURE - INDUSTRIAL ESTATES (9/9) As per budget, the state government has proposed to establish a food park in Kasipur city of Udham Singh Nagar district of Uttarakhand. In November 2014, the Uttarakhand government approved on the new Micro, Small and Medium Enterprises (MSME) Policy for the state. Under the policy, capital subsidy would be 40% for backward districts such as Pithoragarh, Uttarakashi, Chamoli, Champawat, Rudraprayag and Bageshwar (Category A); and 30% for districts like Tehri, Pauri and Almora (Category A). Power, interest and transport subsidies will also be provided in a graded manner. State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIIDCUL) is the organization responsible for development of integrated industrial estates (IIEs) in the state. Until 2015, the IIEs covered land area of 9,600 acres with investment reaching up to US$ billion and generated 2,00,000 employment opportunities List of investors in infrastructure and industrial development in Uttarakhand (US$ million) Hindustan Unilever Ltd Mahindra & Mahindra Ltd ITC Ltd Britannia Industries Ltd 9.52 Dabur India Ltd 8.16 Cavinkare Pvt. Ltd Twenty First Century Printers Ltd Somany Foam Ltd Polar Industries Ltd Havell s India Ltd Source: State Budget , News articles, State Infrastructure and Industrial Development Corporation of Uttarakhand 40

41 KEY INDUSTRIES The natural resources, policy incentives and infrastructure in the state support investments in the drugs and pharmaceuticals, biotechnology, IT/ITeS, mines and minerals, textiles, leather and tourism sectors. Uttarakhand has been successful in attracting long-term investments because of its key industrial and sector-specific policies. Developing appropriate infrastructure has also been a key strategy of the state to attract investments in various industries. Key industries in Uttarakhand Agro-based industry and food processing Information and Communications Technology (ICT) Floriculture Horticulture Pharmaceuticals and biotechnology Hydropower Tourism Engineering and allied industries Fast moving consumer goods Directorate of Industries is the state level office responsible for implementing the policies and programmes for industrial development in the state. For industrial development, the Government of Uttarakhand announced plans to invest US$ million during The MSME policy of Uttarakhand is boosting the growth of MSME sector in the state. After the insertion of this policy, the Government of Uttarakhand is expecting a growth of 15% in next few years. 41

42 KEY INDUSTRIES ICT INDUSTRY (1/2) Information and Communication Technology (ICT) has received special attention from the state government and it has been accorded the status of an industry. Several initiatives have been taken to promote the ICT industry in Uttarakhand. With the establishment of the Software Technology Parks of India (STPI) earth station at Dehradun, Uttarakhand now offers high-speed connectivity. There are more such earth stations planned at other locations. Facilities by BSNL and Reliance are also available in the state. In 2002, incorporation of Information Technology & Industrial Development and State Industrial Development Corporation of Uttaranchal Ltd. (SIDCUL), as the nodal organisation to endorse the growth the IT sector of the state. Hiltron HCL Infosystems Wipro Infotech Modi Infotech Service Some of the key players The state government has been focussing on adoption of technology for development of the state. In November 2015, the state government introduced a mobile application to keep watch over the criminal acts in the state, thereby making the police force better equipped. The application has been developed by WTIT, Dehradun based IT company. The exports of IT products from the state grew at a CAGR of 7.4% between and to reach US$ 350 million in

43 KEY INDUSTRIES ICT INDUSTRY (2/2) Hiltron HCL Infosystems Wipro Infotech Modi Infotech Services Hiltron initially worked to promote the development of electronics and allied industries and services in Dehradun, Uttarakhand. It functions as an IT and communication service provider to the state under the administrative control of the department of IT. HCL is among the largest vertically integrated IT manufacturing companies of India. The company reported consolidated income of US$ million from operations during It is the largest hardware, system integration, networking solutions and distribution company in India. It has its manufacturing facility at Rudrapur in the SIDCUL Industrial Estate, which has an overall capacity of 2 million personal computers per annum. Wipro Infotech is a division of Wipro Limited. It provides enterprise customers with high-value IT products, software services, solutions and consulting services in India and the Middle East. Wipro reported revenues of US$ 7.82 billion in It has a unit at Kotdwar in Uttarakhand. The unit is spread over 5.8 acres of land with a built-up area of 75,000 sq ft. It has fully-automated production lines designed on lean manufacturing practices and houses product engineering and R&D labs for continuous innovation in products and processes. Modi Infotech is located in Haridwar. It is involved in the business of website designing, software development, web-hosting, web-advertising, ERP solutions, e-commerce-based application development and educational segments of the IT market. 43

44 KEY INDUSTRIES AGRO AND FOOD PROCESSING (1/2) Many Agri-Export Zones (AEZs) have already been declared under the AEZ scheme of Government of India for products such as litchi, floriculture & horticulture, herbs, medicinal plants and basmati rice. A biotech park near Pant Nagar is coming up in the state. Uttarakhand has been included in the difficult area category by the Ministry of Food Processing Industry (MoFPI) and hence units being set up in Uttarakhand are also eligible for higher incentives under the scheme of MoFPI. Fruits such as apples, oranges, pear, grapes peach, plum apricot, litchi, mangoes and guava are widely grown in the state and therefore have immense potential for development of horticultural crops and processing units. The state government provides assistance in establishing small and medium agro parks and food parks, which in turn are expected to provide common infrastructure facilities for storage, processing, grading and marketing. As per state budget , Government of Uttarakhand proposed a new scheme of Madhav Singh Bhandari Krishi Syebhagita Yojna, which would boost cooperative farming in the state during The state government announced plans to establish a mega food park in Udham Singh Nagar which is expected to be operational by The state already has one food mega park based in Haridwar. These two mega food parks are anticipated to contribute US$ million to the GSDP of the state and expected to generate about 30,000 direct and 290,000 indirect employment opportunities in the state by The production of oilseeds and pulses during the year was estimated to be around 23,000 tonnes and 58,000 tonnes, respectively. The government is planning to develop Uttarakhand as a manufacturing hub for organically processed food units. Thus, it is inviting food processing companies to come and manufacture organic processed food units in the state.. Status of food processing units in Uttarakhand Total established units 28 Horticulture based units established under MM-IV of HMNEH 42 Food parks in Uttarakhand Name of the food park Area (acres) Plots (nos.) Patanjali Mega Food Park Pvt. Ltd Himalayan Mega Food Park Source: Uttarakhand State Portal, News Article 44

45 KEY INDUSTRIES AGRO AND FOOD PROCESSING (2/2) Britannia Industries Ltd Nestle India Ltd PepsiCo India KLA Foods (India) Ltd Britannia is one of India s leading food product companies, with an estimated 33.0% biscuit market share. The principal activity of the company is the manufacturing and sale of biscuits, bread, cakes and dairy products like cheese, butter and milk. It has a plant in the integrated industrial estate at Pantnagar. The plant is located in Integrated Industrial Estate (IIE), Pantnagar, and the project cost incurred was US$ 12.5 million. The company recorded net sale of products as US$ 1.22 billion in The company employs almost 1,987 people nationwide. Nestle is the world's largest and most diversified food company. It manufactures products under famous brand names such as Nescafe, Maggi, Milkybar, Kit-Kat and Bar-One. It has around 280,000 employees worldwide and 500 factories in about 77 countries. The company s total income from operations in India was recorded at US$ million during second quarter of In 2006, Nestle India commissioned its seventh factory at Pantnagar in Uttarakhand. PepsiCo established its business operations in India in 1989 and is one of the largest and fastest growing food and beverage businesses in India. The company s Indian operations reported revenues of US$ billion during Jan September It provides direct and indirect employment to over 285,000 people globally and has 38 beverage bottling plants and three food plants in India. There is a company-owned bottling plant in Bajpur, Uttarakhand, which has an installed capacity of 100,000 cases of soft drink per day. KLA Foods (India) Limited is involved in international trading in agricultural commodities. The company diversified into exports of minerals and metals and is exporting large quantities of ironore to China. Their rice processing unit, located at Rudrapur in Uttarakhand, was founded in

46 KEY INDUSTRIES FMCG INDUSTRY (1/2) Proximity to key markets and supply centres of North India further adds to the attractiveness of the state as an investment destination. Pantnagar is a primary location for FMCG companies in the state. Milk production in the state increased from 1, thousand metric tonnes in to 1,684 thousand tonnes in Egg production in the state reached 432 thousand tonnes in Meat production in the state increased from thousand tonnes in to 28.4 thousand tonnes in Food sector in Uttarakhand Segment Eggs (lakh nos.) 3, Meat ( 000 tonnes) Milk ( 000 tonnes) 1, Cold storage set up in Uttarakhand, to (nos) Some of the key players ITC Ltd: One of India s largest private sector companies has one of its factories in the personal care products division located in Ranipur, Haridwar. Dabur India Ltd: Leadership position in ayurvedic healthcare products like Chyawanprash, it has a factory located in Pant Nagar. CavinKare Private Ltd: Built with an investment of US$ 11.7 million in 2006, the capacity of the company s plant at Haridwar is 5,000 metric tonnes. The plant has an ISO 9001:2008 certification. Hindustan Unilever Ltd: India s largest FMCG company has its face/body wash preparations, cosmetics & toiletries being manufactured in Sidcul, Haridwar. Source: National Horticulture Board Source: Ministry of Food Processing Industries Source: Uttarakhand State Portal, News Article Ministry of Agriculture, Government of India 46

47 KEY INDUSTRIES FMCG INDUSTRY (2/2) ITC Ltd Dabur India Ltd CavinKare Pvt Ltd Hindustan Unilever Ltd ITC is one of India s foremost consumer goods companies, and is truly diversified with a product assortment ranging from cigarettes, apparel, and personal care and food products. The company is also one of the leading hoteliers in the country and is involved in agri-business. The company reported consolidated revenue of US$ 8.21 billion in It has established a manufacturing facility in Uttarakhand for producing soaps and shampoos. The plant, located at Integrated Industrial Estate (IIE) Haridwar, was set up with an investment of US$ 27.4 million. Dabur is one of the leading consumer goods manufacturing companies in India with a consolidated income of US$ 1.28 billion in It has 17 ultra-modern manufacturing units spread across the globe and its products have markets in over 60 countries. It has established a manufacturing facility in Uttarakhand. The company manufactures products for healthcare, personal care and ayurvedic cosmetics segments. The plant located in IIE Pantnagar was set up with an investment of US$ 10.7 million. In November 2013, it acquired another company in Uttarakhand at a cost of US$ 2.5 million. CavinKare is a leading FMCG company in India. The company has an employee strength of around 3,000, an all-india network of 5,351 stockists catering to about 2.5 million outlets. CavinKare Group has a turnover of US$ million in It has established a manufacturing facility at the IIE Haridwar in Uttarakhand. It manufactures products such as cosmetics, shampoos, creams and deodorants. The plant was built with an investment of US$ 15.3 million. Hindustan Unilever Limited (HUL) is the largest FMCG company in India. It recorded consolidated revenue of US$ 4.21 billion from operations during It has a state-of-the-art personal care products factory, set up with an initial investment of US$ 28.5 million in SIDCUL IIE at Haridwar. 47

48 KEY INDUSTRIES ENGINEERING AND ALLIED INDUSTRIES (1/2) Many Indian and multinational companies have established their manufacturing bases in Uttarakhand as a result of the state s emphasis on industrial and infrastructure development by providing incentives as well as easy availability of manpower. Many automobile and auto component companies have set up their manufacturing units and R&D centres in the state. Some key players Tata Motors Ltd Bharat Heavy Electricals Ltd (BHEL) Surya Polar Industries Ltd BHEL is one of the oldest and most important companies in the engineering sector in the state. Tata Motors, Ashok Leyland, Hero Honda, and Mahindra and Mahindra are some of the well-known automotive companies that have set up units in the state. In September 2015, TVS Tyres invested US$ million to increase the production capacity of its tyre plants based in Uttarakhand and Tamil Nadu. In October 2015, State Infrastructure and Industrial Development Corporation of Uttarakhand Ltd (SIDCUL) announced that the state is set to finalise the deal with Airbus for establishing a manufacturing facility at Sitarganj Industrial Estate in Kumaon region. The aircraft manufacturer is planning to invest US$ million for 100 acres of land. In August 2015, JK Tyres announced plans to purchase the tyre unit of Kesoram Industries based in Uttarakhand, for an estimated amount of over US$ 0.33 billion. In April 2016, the company announced completion of the acquisition process. 48

49 KEY INDUSTRIES ENGINEERING AND ALLIED INDUSTRIES (2/2) Tata Motors Ltd Tata Motors is one of the leading firms in the country in the automobile and engineering sectors. Consolidated net revenue of the company stood at US$ 7.45 billion in The company has set up its fourth plant in Uttarakhand. This plant in Pantnagar has been set up for manufacturing the firm s mini-truck named Ace. Bharat Heavy Electricals Ltd (BHEL) Surya Roshni Ltd BHEL is one of the leading power generation equipment manufacturers in the world. The company reported revenue of US$ 4.06 billion in It has installed equipment for over 100,000 MW of power generation for utilities, captive and industrial users. BHEL also offers comprehensive services to its customers in the conventional and non-conventional sectors including energy, industry, transport, defence and oil & gas. BHEL, Ranipur, is a township developed by the company in the Haridwar district of the state. BHEL, Haridwar, has a campus of 7,000 acres, of which, 2,034 acres is home to 200 companies including Hero Honda, Maruti and ITC. Surya is among India's leading manufacturers of lighting products. The company is a leader in the exports of fluorescent tubes and has achieved high brand visibility in over 40 countries. The company generated revenue of US$ million in In 1984, Surya set up its first factory for lighting products at Kashipur in Nainital. Its steel pipe manufacturing plant is among the largest in Asia, located at Bahadurgarh, Haryana. Polar Industries Ltd Polar is a popular fan manufacturing company. It has established a manufacturing facility in Uttarakhand. The company manufactures electrical fans, water-lifting pumps, geysers, water purifiers and laminations. The plant, located in IIE Haridwar, was set up with an investment of US$ 4.7 million. 49

50 KEY INDUSTRIES FLORICULTURE AND HORTICULTURE (1/2) Uttarakhand has several agro-geo-climatic zones, making it particularly conducive to commercial horticulture and floriculture. The floriculture industry is being developed aggressively to meet the demands of domestic as well as foreign markets. The climate of the state makes it ideal for growing flowers around the year. Floriculture parks with common infrastructure facilities for sorting, pre-cooling, cold chain, processing, grading, packing and marketing facilities have been planned to provide adequate incentives and facilities to the industry. Production of loose flowers in the state increased to 2,090 tonnes in Under Budget , the Government of Uttarakhand proposed an outlay of US$ 3.73 million for the mission entitled as Mission for Integrated Development of Horticulture (MIDH) for the state. Till date, US$ 1.86 million of funds have been released. Onion production in the state stood at 41.3 thousand MT during Key player Uttarakhand Organic Commodity Board (UOCB) Policy / administrative measures in horticulture sector Uttarakhand University of Horticulture and Forestry was established in This University is continuously taking new initiatives in the fields of extension, research and certificate level courses for the benefit of staff as well as lay farmers. Single window system has been shaped in order to smoothen clearance of projects under schemes of Horticulture Mission for North East and Himalayan States, National Mission on Food Processing, National Horticulture Board and Agricultural and Processed Food Products Export Development Authority. A weather based crop insurance cover has been facilitated to the farmers producing apple, litchi, mango, tomato, potato and ginger. 1, Total horticulture crop production (in 000 MT) 1, , , Source: State Horticulture Mission 50

51 KEY INDUSTRIES FLORICULTURE AND HORTICULTURE (2/2) Horticulture production ( 000 MT) ( ) Fruits Vegetables 1, Spices Flowers (cut) Honey 2.10 Total horticulture crop production area (in 000 ha.) Source: National Horticulture Board Uttarakhand Organic Commodity Board (UOCB) The Uttarakhand Organic Commodity Board (UOCB) is a government body founded in It is supported by the state government and is located in the Dehradun. UOCB advises and assists the state government in the overall strengthening and implementation of the institutional set up. It is also engaged in the production, processing, marketing and promotion of organic farming in the state. The Board also focuses on promoting organic farming in the fields of land use agriculture, horticulture, animal husbandry, dairy, sericulture, apiculture, floriculture, herbs and medicinal plants, tea, fisheries, forest and all related areas for the promotion and development of organic farming in the state, and networks and liaisons with various department of the state. The Board provides training for organic farming to equip the farmers with the latest methods and make them aware about the potential market for the commodities. 51

52 KEY INDUSTRIES FOREST PRODUCTS INDUSTRY (1/3) The state s forest revenues increased at a CAGR of 9.5% between and to reach US$ million in Forest products have excellent potential for development due to easy availability of raw materials in the state. The state has ample scope to develop industries based on forest- and agro-wastes such as lantana, pine-needles, plant and vegetative fibres. Uttarakhand accounts for 6 national parks and 7 wildlife sanctuaries. The area covered by national parks and sanctuaries is 4,915 square km and 2,690 square km respectively. In , the recorded forest area of the state was 36,556 square km, which constitutes around 68.4% of its geographical area. Uttarakhand is a storehouse for a rich variety of herbs, medicinal and aromatic plant species. This enables the state to offer immense opportunities for the development of export-oriented units based on such products. Forest Research Institute (FRI) is a premier institution under the Indian Council of Forestry Research and Education (ICFRE), situated in Dehradun, Uttarakhand. The state is home to more than 175 species of rare medicinal, aromatic & herbal plants. Department of Agriculture & Cooperation (DAC), Ministry of Agriculture is implementing National Bamboo Mission (NBM) scheme under Mission for Integrated Development of Horticulture (MIDH) with the objective to utilise the potential of bamboo crop and increase the area of cultivation. In , US$ 0.16 million was allocated for the implementation of the scheme in Uttarakhand, of which US$ million was released. Under Budget , the state government sanctioned funds to the forest department of the state for the following schemes: Multi-purpose Plantation & Conservation of Forests : US$ 1.42 million Assistance to Bamboo & Bio-fuel Board for Plantation of Bamboo & Bio-fuel Species : US$ million Forest Fire Protection : US$ 0.35 million Conservation & Development of Medicinal/ Herbal Species for purpose of Livelihood Development : US$ 0.15 million Forest Protection Scheme : US$ 0.22 million Eco-tourism: US$ 0.16 million Source: Forest Department, Uttarakhand, State Budget

53 KEY INDUSTRIES FOREST PRODUCTS INDUSTRY (2/3) Equivalent green weight by soundness of culms in Uttarakhand forests ( ) (in 000 MT) Bamboo production statistics Bamboo production area (hectare) under National Bamboo Mission 6,028 Bamboo bearing area (Ha.) 45,100 Bamboo reserved forest area 34,65,100 Green Culms Dry Culms Total Source: Ministry Of Agriculture Approved area under National Afforestation Programme (NAP) Scheme for bamboo production (in ha.) Source: Ministry Of Agriculture 53

54 KEY INDUSTRIES FOREST PRODUCTS INDUSTRY (3/3) Funds sanctioned and utilised under Intensification of Forest Management Scheme Forest cover map Funds Sanctioned Funds Released Source: Ministry Of Environment and Forests Source: Uttarakhand Forest, Government of Uttarakhand 54