DELHI THE HEART OF INDIA

Transcription

1 THE HEART OF INDIA February 2018

2 Table of Content Executive Summary...3 Advantage State Delhi Vision..5 Delhi An Introduction Budget Infrastructure Status...16 Business Opportunities Doing Business in Delhi State Acts & Policies

3 EXECUTIVE SUMMARY Strong economic growth Delhi is one of the fastest growing states of the country. At current prices, the gross state domestic product (GSDP) of Delhi was US$ 96.5 billion in Between and , GSDP of the state grew at a CAGR of 7.28%. Attractive real estate industry 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. For housing and urban development in Delhi, the State Government announced plans to invest US$ million in Growing tourism industry Owing to its location, connectivity & 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 & Indian nationals. Delhi is among the top tourist destinations in India. The number of domestic tourists visiting the state is gradually rising, Delhi received million domestic tourist and 2.52 million foreign tourists in As of , the government has planned expenditure of US$ million on the tourism sector, with focus on developing tourism infrastructure in the state. Delhi was ranked the best tourist destination in India in 2017*. 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. State Budget, Ministry of Tourism, Central Statistics Office, *Hotelivate India State Ranking Survey

4 ADVANTAGE: Per capita GSDP was US$ 5,175. During FY12-17, per capita GSDP grew at a CAGR of 5.57% Political and economic hub As Delhi is the seat of 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 operate in the state. The state also hosts several trade conventions & fairs throughout the year. GSDP at current prices increased at a compound annual growth rate (CAGR) of 10.4% between and Advantage Delhi Attractive avenues of investment Delhi has emerged as a key state with immense scope for development of the service industry such as BFSI, IT and ITeS, and consulting, among others. Delhi has an attractive real estate market & 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 Between and , per capita NSDP grew at a CAGR of 6.73% Rich skill pool Delhi has a large skill base; 30% of the workforce is qualified for occupations such as engineering, medicine, law, and consultancy. Among all states, Delhi has the largest share of skilled workforce, making it suitable for knowledge-based economic activities such as IT/ITeS, designing, R&D & financial services. As Delhi is the country s capital & has ample facility support, it attracts skilled & semi-skilled labour from across the country. It houses a few of the country's most prestigious institutes such as IIT, IIFT, FMS & AIIMS. 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 & 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 & a well developed network of rail & metro infrastructure. The state has more than 100% telecom penetration & high internet penetration. 4

5 VISION Housing for urban poor to 50-55% of total. Regularise unauthorised colonies. Optimum utilisation of available resources for housing. Upgradation & modernisation of existing industries. Recognition & inclusion of new industries. Enhancement of ground coverage. Locating new school sites adjacent to parks/playgrounds. Provision for vocational facilities. Rationalisation of planning norms with enhanced floor area. Educational facilities Shelter Transportation Trade & commerce Industry Vision 2021 Infrastructure development Health infrastructure Alternate source of energy. Power, drainage & waste management. Building regulations for safety of structures as per seismic zone. Land use zoning as per microzonation. Development of multilevel & underground parking space. Integrated multimodal public transport system. Provisions for service & Achieve norms of 5 beds per 1,000 population. Enhancement of FAR for repair activities. hospitals & other facilities. Integrated freight complexes & wholesale markets. Develop district & community centres. Delhi Development Authority 5

6 - FACT FILE Delhi is home to the Union Government of the country and offices of the state government. 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 Parameters Delhi Geographical area (sq km) 1,483 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 & Haryana. Delhi has a cosmopolitan culture with a mix of languages in use. English & Hindi are commonly spoken for everyday transactions. Punjabi, Bihari, Haryanvi, etc., are the other languages used. Administrative districts (No) 11 Population density (persons per sq km) 12,591 Total population (million) 16.8 Male population (million) 9.0 Female population (million) 7.8 Sex ratio (females per 1,000 males) 868 Literacy rate (per cent) 86.2 The state of Delhi is divided into 33 sub-divisions under 11 districts. The Union Government s area is managed by the New Delhi Municipal Council (NDMC) Note: NCR National Capital Region Source: Delhi Economic Survey

7 IN FIGURES (1/2) Parameter Delhi All states Source Economy GSDP as a percentage of all states GSDP GSDP growth rate (%) Per capita GSDP (US$) 5,175 1,709 Physical Infrastructure Advanced Estimates provided by Directorate of Economics and Statistics of Delhi, Government of Delhi Advanced Estimates provided by Directorate of Economics and Statistics of Delhi, Government of Delhi Advanced Estimates provided by Directorate of Economics and Statistics of Delhi, Government of Delhi Installed power capacity (MW) 7, , Central Electricity Authority, as of January 2018 Wireless subscribers (No) 55,548,132 1,162,470,432 Internet subscribers (million) Telecom Regulatory Authority of India, as of November 2017 Telecom Regulatory Authority of India, as of September 2017 National Highway length (km) ,435 NHAI & Road & Building Department, June 2017 Airports (No) Airports Authority of India 7

8 IN FIGURES (2/2) Parameter Delhi All states Source Social Indicators Literacy rate (%) Census 2011 Birth rate (per 1,000 population) SRS Bulletin, September 2017 Investments FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, From April 2000 to December 2017 Industrial Infrastructure PPP projects Completed & Operational (No) DEA, Ministry of Finance, Government of India, January 2018 Note: 1 Including part of Uttar Pradesh and Haryana, PPP: Public-Private Partnership, SRS: Sample Registration System 8

9 , , , , , ,175.0 ECONOMIC SNAPSHOT GSDP GSDP of Delhi at current prices (in US$ billion) GSDP per capita of Delhi at current prices (in US$) CAGR 7.28% 6,000.0 CAGR 5.57% , , , , , At current prices, the gross state domestic product (GSDP) of Delhi was US$ 96.5 billion in Between & , GSDP of the state grew at a CAGR of 7.28%. Growth was driven by the expansion of the services sector. Banking, insurance, real estate, trade, tourism & communications were driving the progress in the sector. The state s per capita GSDP in was US$ 5,175 in comparison with US$ 3,739 in Per capita GSDP increased at a compound annual growth rate (CAGR) of 5.57% between and Source - Directorate of Economics and Statistics of Delhi 9

10 ECONOMIC SNAPSHOT NSDP NSDP of Delhi at current prices (in US$ million) NSDP per capital of Delhi at current prices (in US$) CAGR 5.60% CAGR 6.73% At current prices, the net state domestic product (NSDP # ) of Delhi was about US$ billion in The average NSDP growth rate between and was about 5.6%. The state s per capita NSDP& in was US$ 4,703 compared with US$ 3,182 in The per capita NSDP increased at a CAGR of 6.73% between and Source - Directorate of Economics and Statistics of Delhi 10

11 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP Commerce & trade contribute more to Delhi s economy than manufacturing & agriculture. Visakhapatnam GSVA composition port traffic by (million sector tonnes) There has been a shift in the sectoral contribution from primary & secondary to the tertiary sector. The overall performance of the economy of the state, during the , was encouraging. In , the tertiary sector accounted for 82.26% of the GSDP of Delhi, at current prices, followed by the secondary sector, which contributed 14.84%. Tertiary sector of Delhi witnessed growth at a CAGR of 10.21% during to , driven by growth in trade, hotels, real estate, banking, insurance, transport, communications & 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. Delhi's economy has shown a growth of 12.76% in , with the per capita income having risen to almost three times of the national level % % 80.00% 60.00% 40.00% 20.00% 0.00% CAGR 83.42% 10.21% 82.26% 9.95% 8.85% 13.09% 14.84% 3.49% % Primary Sector Secondary Sector Tertiary Sector Source - Directorate of Economics and Statistics of Delhi 11

12 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION Commonly grown crops in the state are wheat, rice, jowar, bajra, mustard & vegetables. The total horticulture crop production in the state was recorded to be thousand tonnes & the area under cultivation was thousand hectares, during Under the Annual Budget plan for , Government of Delhi proposed an outlay of US$ 1.06 million for the development of agriculture & allied services in the state. Estimated area, yield & production of crops Crop Area (hectares) Annual production (metric tonnes) Yield (kg. per hectare) Wheat 19,050 83,419 4,379 Barley ,919 Bajra 1,482 3,256 2,197 Maize ,118 Jowar 3,161 3, Paddy 5,854 25,256 4,314 Gram ,120 Mustard 3,593 4,527 1,260 Source: Ministry of Agriculture, Economic Survey of Delhi, Annual Plan

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 & 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 & 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 & managing research and education in agriculture, including horticulture, fisheries & 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 * 2,677 3,222 6,242 7,983 6,875 5,884 12,743 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS Sector- wise plan outlays for 12th Five Year Plan ( ) and Annual Plan FDI equity inflows 1 (US$ million) Sector 12 th Five Year Plan outlay (US$ million) Approved outlay (US$ million) Rural development Irrigation & flood control Energy ,000 12,000 10,000 8,000 6,000 6,113 Industries ,000 Transport ,000 Tourism Civil supplies General education Technical education Art & culture Sport & youth services According to the Department of Industrial Policy & Promotion (DIPP), the cumulative FDI inflows 1, from April 2000 to December 2017, stood at US$ billion. Medical Source: Department Of Industrial Policy & Promotion, 1 Including part of Uttar Pradesh and Haryana; *up till December

15 ANNUAL BUDGET The total budget allocation for the year was recorded to be US$ 7.44 billion, of which US$ 5.96 billion has been allocated as revenue expenditure whereas US$ 1.48 billion has been allocated as capital expenditure, during Plan outlay & expenditure of some of the major sectors Sectors Amount (US$ million) Education 1,753.8 Health Public Transport & Road Infra Social Security & Welfare Water & Sanitation Energy Housing and Urban Development ART & CULTURE 8.25* Tourism Note: * Source: Finance Department, Government of Delhi 15

16 PHYSICAL INFRASTRUCTURE ROADS (1/2) The road network of Delhi has increased from 32,131 km in to 33,868 lane km in National Highways Authority of India, Public Works Department, Municipal Corporations of Delhi, New Delhi Municipal Council, Delhi Cantonment Board & Delhi Development Authority are the responsible authorities for the development & maintenance of road network in Delhi. Road type Length (km) As of September 2017, Government of India had undertaken highway projects worth Rs 34,000 crore (US$ 5.29 billion) to decongest the national capital. The government announced plans to construct two underpasses & a flyover on NH-8 to ensure smoother commute between Dwarka, Vasant Kunj, Dhaula Kuan & Gurgaon. In the next 2-3 years i.e. by 2019, the project is slated for completion for an investment of US$ million. Total road length 33,868 National highways 79 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 23,931 NDMC 1,290 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 6,308 DSIIDC 1,250 1,317 1,317 1,434 1,434 1,434 1,434 1,434 1,434 I&FC DDA N.A. N.A. N.A. N.A Note: N.A.: Not Available Source: Socio Economic Survey

17 PHYSICAL INFRASTRUCTURE ROADS (2/2) As per Annual Plan , the total allocation made by the state government for transport sector was recorded to be US$ million. The state government announced its plans of constructing two elevated BRT corridors from Wazirabad to Airport (North-South corridor) & from Anand Vihar terminal to Peeragarhi (East West Corridor), during As per budget , the feasibility study for the same is under progress. As per budget , US$ 23.2 million were allocated for the completion of the construction work of an elevated road from Sarai Kale Khan to Mayur Vihar. By the end of 2016, the state government procured 1380 semi low floor buses, 500 midi buses under DTC around 1000 more buses under cluster scheme for strengthening the transportation facility in Delhi. A total of 3,105,081 private vehicles & 393,109 commercial vehicles were registered in the state up to March, These included 19,109 buses, 5,849 E-Rickshaws, 1,507 tractors, 26,2547 motor cars, etc. Major schemes for Delhi s road transport Computerization of records Motor driving training schools Mass Rapid Transit Systems (MRTS) Decongestion & Rationalization of Inter-State Bus Terminals 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 27,90,566 29,86,579 Motorcycles & scooters 56,81,265 61,04,070 Ambulance 1,527 2,990 Auto rickshaws 81,633 1,98,137 Taxies 79,606 91,073 Buses 19,729 34,365 Source: Department of Planning, Government of NCT of Delhi, State Budget , , Annual Plan

18 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 interstate transport is borne by railways. Major railway stations in the state include New Delhi, Old Delhi, Hazrat Nizamuddin railway stations, Sarai Rohilla & Anand Vihar Railway Terminal. Delhi Metro Phase I Phase II Phase III Delhi Metro existing phase length Phase Length (km) 20.23% underground 27.92% underground 33.79% underground Phase I % elevated 70.33% elevated 66.21% elevated/at grade Phase II % at grade 1.73% at grade Not Available Phase III (after completion) Funds sanctioned and released for metro rail projects ( to ) Project Funds Sanctioned Funds Released Approved Completion Date Progress ( (1) ) Delhi Metro Phase II & III 2006 Dwarka to Najafgarh 2008 Extension of Delhi Metro to YMCA Chowk, Faridabad US$ billion US$ billion December 2016 Yamuna Vihar to Shiv Vihar 2016 Mundka to Bahadurgarh 2021 (expected) Source: Delhi Economic Survey , Delhi Metro Rail Corporation, (1)up to October

19 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 & Government of National Capital Territory of Delhi (GNCTD). Average ridership of Delhi Metro was approximate 2.76 million 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 & 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. In November 2015, first corridor, from Jahangirpuri to Badli, of phase-iii metro project became operational. This phase-iii project is in the final stages of completion and this phase will help in raising the Delhi Metro daily ridership from 2.7 million to 4.1 million. The Botanical Garden-Kalkalji Mandir stretch on the magenta line which will reduce travel time between Noida and South Delhi to 16 minutes was made operational in December With investment of around US$ 1.50 billion, Indian Railways is planning on increasing the speed of trains to up to 160 km per hour under the project Mission Raftaar, on the Delhi-Howrah & Delhi-Mumbai routes. The Board of National Capital Region Transport Corporation has invested US$ 3.34 billion in the Rapid Rail Transit Corridor (RRTC), which will operate between Delhi, Ghaziabad & Meerut, making it a 92 km long corridor. As of April 2017, the government is planning to run 4 major railway stations on solar power, which will help in reducing carbon emissions. Hazrat Nizamuddin will be installed with 0.6 MW solar capacity, Old Delhi will have 2.2 MW solar capacity, New Delhi Railway station with 1.1 MW & Anand Vihar Terminal with 1.1 MW. In July 2017, country s first ever solar solar powered train was launched at Delhi s Safdarjung railway station. In April 2017, the Delhi Metro Rail Corporation and Madhya Pradesh Power Management Company signed power purchase agreements with Rewa Ultra Mega Solar Ltd. to setup a 750MW solar park. The power generated out of the park will suffice the 90% daytime requirement of the metro. Source: Delhi Economic Survey , Delhi Metro Rail Corporation, State Budget ,

20 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 Phase-II network Line 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) Source : Delhi Metro Rail Corporation, News Article 20

21 PHYSICAL INFRASTRUCTURE RAILWAYS METRO RAIL (3/3) Phase-III network Line Length (km) No of stations Line 7- Majlis Park-Shiv Nagar 38 Line 8- Janakpuri West-Kalindi kunj 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 Phase-IV Network (proposed) 6 corridors N.A. Source Delhi Metro Rail Corporation, N.A. Not Available 21

22 PHYSICAL INFRASTRUCTURE AIRPORTS The Indira Gandhi International Airport is one of the busiest in the world & handles more than 40 million passengers. It was ranked the 2nd best airport in the world in 2016, by the Airports Council International. The Indira Gandhi International Airport has been awarded the 'International Safety Award' by British Safety Council. The airport handled around 55.5 million passengers in Terminal 3 is spread over a 500,000 square metre area & equipped with 95 immigration counters, 168 check-in counters & 78 passenger boarding bridges to handle 34 million passengers per annum (MPPA) & bags per hour. The planned ultimate design capacity of the airport is 100 MPPA. According to the annual report released by the AAI in April 2017, Delhi airport is the most preferred airport for traveling to Europe, Asia & North America. The report also revealed that Delhi is the most connected airport as it served to 129 destinations, with more than 29% of the tourists arriving in Delhi.. As of June 2017, the government is planning to build a second airport in the NCR region in Jewar in four phases, to be operational in the next five to six years. Airport indicators Year Passengers Aircraft movement Freight handled (tonnes) ,729, , , ,211, , , ,876, , ,985, , , ,424, , , ,703, , , (up to January 2018 ) 54,100, , ,448 22

23 7,413 7,419 7,839 7,811 8,274 8,342 PHYSICAL INFRASTRUCTURE POWER (1/4) As of January 2018, Delhi had a total installed power generation capacity of 7, MW Thermal power plants accounted for 6, MW of the total installed capacity, followed by hydro power plants with installed capacity of MW, nuclear power plants with MW of installed capacity and MW of other renewable energy sources. As of January 2018, central utilities sector accounted for a majority of the share in the total installed capacity in the state, accounting for MW of the installed capacity, followed by MW by the state utilities and around 1, MW by private utilities. Segment Power generation Power transmission Power distribution 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) Tata Power Delhi Distribution Limited (TPDDL) New Delhi Municipal Council (NDMC) Military Engineering Services (MES) Installed power capacity (MW) 8,600 8,400 8,200 8,000 7,800 7,600 7,400 7,200 7,000 6, * Note: *As of January 2018 Source:: Central Electricity Authority 23

24 PHYSICAL INFRASTRUCTURE POWER (2/4) IPGCL and PPCL were the two state-owned power generating entities. To improve power generation & operational efficiencies, the Government decided to merge IPGCL & PPCL into a single entity. During , the state government minimized the average load shedding to 0.15%. Moreover, electricity bills were reduced by 50% in the state, for the consumers that consumed up to 400 units of electricity every month. Moreover, as per the state budget , the state government has allocated a plan outlay of US$ million for the development of energy sector in the state. The load growth pattern of Delhi was of the order of 6.32% during the years 2009 to The load demand in the capital is estimated to grow approximately at 7per cent per annum. The per capita consumption of electricity of Delhi is much higher than the national average. Government prepared a proposal for islanding of Delhi, which was approved by Government of India. The project is under implementation Electricity consumers in Delhi (in 000s) Electricity distribution in Delhi (in MU) Year Domestic Commercial Industrial Others ,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, ,386 6,814 3,068 2, ,560 6,053 3,135 2,289 Source: Delhi Economic Survey , Delhi Electricity Regulatory Commission, Delhi Planning Department 24

25 PHYSICAL INFRASTRUCTURE POWER (3/4) As of March 2017, BSES Yamuna distributed power to around 1.59 million customers in Central & East Delhi. Moreover BSES Rajdhani accounts for a customer base of 2.38 million customers in the areas of South & West Delhi. TPDDL distributes power to around 1.35 million customers spread over a 510 sq km area in North and Northwest Delhi. NDMC serves around customers in New Delhi, while MES serves around customers in Delhi cantonment Power distribution in Delhi DISCOM 2 DISCOM 3 DISCOM 1 Energy Consumption in Delhi (in MUS) Infrastructure investments by power companies in Delhi (US$ million) Year BYPL BRPL NDPL Total Source: Economic Survey of Delhi 25

26 * PHYSICAL INFRASTRUCTURE POWER (4/4) During , the energy requirement in the state reached 31,110 MU & peak requirement reached 6,100 MW. In , the energy requirement in the state is anticipated to reach 32,396 MU & peak requirement is anticipated to reach 6,560 MW. Further during , the energy requirement is expected to increase to 52,930 MU & peak load to reach 9,024 MW Government expenditure in energy sector (US$ million) Source : Delhi Planning Department, CEA Report 26

27 PHYSICAL INFRASTRUCTURE TELECOM According to Telecom Regulatory Authority of India (TRAI), Delhi had nearly million wireless subscribers & 3.22 million wire-line subscribers, as of December By October 2017, 15,528,180 subscribers had submitted requests for mobile number portability (MNP) in Delhi. Moreover, tele density in Delhi stood at %, the highest in the country as of December Telecom infrastructure (as of December 2017) Wireless connections 55,548,132 Wireline connections Internet subscribers* 28,130,000 Post offices Teledensity (in %) Telecom Regulatory Authority of India, Delhi Economic Survey , 1 As of December 2015; * As of September 2017 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 27

28 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE 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 & waste-reduction schemes, developing transport, landfill sites and transfer stations for waste & focusing on biomedical & 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 5 more sub-cities, such as Dwarka, Rohini & 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. About 98% of the total population of Delhi lives in urban areas. The state has very strong electrification level & about 99% of the households had access to sanitation facilities. As per annual budget , an amount of around US$ million was proposed for the housing & urban development sector. In March 2017, Netherlands-based real estate fund Aevitas Property Partners, signed an agreement to invest USD29.9 million across affordable housing projects of New Delhi-based real estate developer DASNAC Holdings As per annual plan , an amount of US$ million has been allocated by the state government for the development of urban infrastructure in the state Source: JNNURM, Ministry of Urban Development, Delhi State Budget, ,

29 DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS (1/2) Project name Type Sector Stage Project cost (US$ million) Delhi-Gurgaon Highway BOT Transport Operational Narela Industrial Estate-Redevelopment Bawana Industrial Estate-Redevelopment N/A N/A Social and commercial infrastructure Social and commercial infrastructure Operational 21.6 Operational 14.9 Construction of 197 Bus-Q-Shelters in NDMC area BOOT Transport Operational 2.5 Modernisation of Delhi International Airport PPP Transport Operation 1,902.5 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 PPP Water sanitation Under construction PPP Transport Under construction 1.33 PPP Transport Under construction Delhi-Noida Toll Bridge BOOT Transport Operation Water Supply Improvement (Malviya Nagar) Pilot Project PPP Water sanitation Under construction Water Supply Improvement (Mehrauli) Project PPP Water sanitation Operation Development of 250 Bus Queue Shelters (BQS) N.A. Transport Under Construction 6.2 Solid Waste Management (Shahdara) Project PPP Water sanitation Under construction 2.99 Source: DEA, Ministry of Finance, Government of India 29

30 DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS (2/2) Project name Type Sector Stage Project cost (US$ million) Bus queue shelters PPP Transport Under Construction 5.8 Dwarka ISBT BOO Transport N.A New Delhi Railway Station DBFO Transport N.A Source: DEA, Ministry of Finance, Government of India 30

31 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (1/3) SEZs Industrial clusters in Delhi IT and ITeS SEZ-Baprola Narela Industrial Complex Mangolpuri Industrial Area Gems and Jewellery SEZ- Baprola Kirtinagar Industrial Area Naraina Industrial Area IT Park, Shastri Park, DMRC Okhla Industrial Area INDEX SEZ Location Industrial Area Location Operational Under construction 31

32 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (2/3) On the industrial infrastructure front, the state has undertaken a number of development initiatives such as redevelopment of industrial clusters & 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 & Infrastructure Development Corporation Limited (DSIIDC). During , 1,490 cluster buses were active in the state. Under the state s cluster scheme, 1000 new buses were introduced during The Delhi transport department has begun the process of procuring 2,000 new buses with the first lot anticipated to hit the roads by The Delhi-Mumbai Industrial Corridor Development Corporation has finalized a policy to allot land developed by it at four sites on the proposed 1504 Km corridor, which will enable industries to acquire the land for setting up units. The Centre has already invested US$ 1.07 billion in developing the projects. Formally approved SEZ in Delhi Project Name Location Sector Delhi State Industrial Information Development Corporation Ltd. Delhi State Industrial Information Development Corporation Ltd. Narela Industrial Complex Baprola village, Delhi Baprola village, Delhi IT Gems and Jewellery 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: Ministry of Commerce & Industry, Department of Commerce 32

33 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (3/3) 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 & 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 in It occupies a place of pride among the industrial estates in Delhi & is divided into 2 phases with around 1200 industrial units, which manufacture electronic & electrical goods, engineering goods, plastic goods, readymade garments & 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

34 SOCIAL INFRASTRUCTURE EDUCATION (1/2) Delhi has a literacy rate of 86.2%, the male literacy rate is 91.03% & the female literacy rate is 80.93%. As per budget, the state government allocated US$ billion for the development of the education sector in the state. Moreover, work on construction of a sports school & a sports university in the state is also under process. Under the 12th Five Year Plan during , the Government of Delhi has allocated US$ 1.90 billion for general education & US$ million for technical education. Recognised universities Delhi University Jawaharlal Nehru University Jamia Millia Islamia University Guru Gobind Singh Indraprastha University Indira Gandhi National Open University School of Open Learning will offer 11 new UG courses. The new programmes include BA (H) in Hindi, Sanskrit, Psychology & Economics. With this, the number of UG courses offered by SOL would increase from 5 to 16. Category Literacy rate (%) Total 86.2 Male Female Government expenditure in education sector (US$ million) Source : Delhi Economic Survey , Delhi Planning Department 34

35 SOCIAL INFRASTRUCTURE EDUCATION (2/2) In , the enrolment of students stood at 3,222,000 in primary schools & 1,208,000 in high schools. To improve the quality of education, state government has started organizing training programmes at Cambridge University for principals. Mentor teachers are also being sent to Singapore for trainings. Government has allocated US$ million for Education sector, under budget The government plans to improve learning outcomes at government schools, by creating schools of excellence in each zone from 2017 as it will help to mentor students on the basis of their interests. The government has decided to establish three tier systems for health care delivery mohalla clinics (107 operational for primary care of citizens), polyclinics (23 operational and another 22 are to be opened till the end of FY2018) and hospitals. As per budget , Mohalla Clinics have been successful and around 2.6 million people have benefitted from such clinics. Education statistics ( ) Pre primary and primary Nos Number of students ( 000) Number of teachers ( 000) 2,779 2, Middle 940 1, Secondary Senior secondary 1, Total 5,796 4, Educational infrastructure ( ) Primary schools 3,719 High schools 2,077 Universities 27 Deemed universities* 12 Institutes of national importance 3 Colleges for general education 81 Colleges for professional education 100 Note: * Source: Delhi State Portal 35

36 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. During , the first Mohalla Clinic became operational in the state which caters to provision of required medicines as well as tackling various healthcare needs of the citizens. Further, the state government is also renovating various hospitals in the state. Additionally, new institutions are also being set up which are expected to provide the state with an additional 10,000 beds in coming 2 years. The Government of Delhi proposed an overall outlay of US$ million for the development of the healthcare sector under state budget Expenditure incurred under Central Government Health Scheme (CGHS) for Hospitals in Delhi (in US$ million) In addition, the Government of Delhi has made all diagnostic tests as well as medicines free of cost across various government hospitals of the state from 1st March, Health infrastructure (2017) Primary health centres 5 Sub centers 26 District hospitals 23 Sub district facilities 24 Source: * till July 2015 Source Delhi Statistical Handbook , Ministry of Health & Family Welfare, Budget

37 SOCIAL INFRASTRUCTURE HEALTH (2/2) Key highlights for the health sector in Delhi s state budget are: The state government is planning to increase and complement the capacities of diagnostics in the state through PPP based radiology diagnostics services and labs. For this, government has sanctioned US$ 2.32 million. Government has already allowed free MRI / CT Scans for citizens availing health care facilities through Delhi Government hospitals. Health indicators (2017) Birth rate Death rate Infant mortality rate 2 18 Government expenditure on medical and public health sector (US$ million) Health infrastructure budget Hospital 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 Medical Public Health Source : SRS Bulletin, Delhi Economic Survey , State Budget , 1Per thousand persons; 2Per thousand live births, Delhi Planning Department 37

38 CULTURAL INFRASTRUCTURE Delhi s rich history is reflected in its forts, monuments, palaces, gardens & bazaars created by its rulers during different periods of their occupation. The remains of a large number of such historical places & monuments are the sites of attraction for visitors & tourists in Delhi. In addition to these historical places, a large number of gardens, buildings, playgrounds, institutional buildings, markets & event places were constructed by the British until 1947 and thereafter, by the Government of India and Government of Delhi. Under the 12th Five Year Plan the Government of Delhi proposed an outlay of US$ million for the art & culture sector & US$ million for sports & youth services. During , the proposed amount under the annual plan stood at US$ 8.24 million for arts & culture sector & US$ 7.33 million for sports & youth services sector. The state government conducted a huge talent hunt show across schools for the promotion of music, theatre, dance & drama, during In November 2016, Government of Delhi launched the Yamuna riverfront project, at an estimated cost of US$ million. The project aims to beautify the Yamuna riverfront & will be constructed using eco-friendly materials. The Delhi Urban Art Commission (DUAC) is planning to come up with, Art Master Plan, to promote public art in the state. During November 2016, over 7,000 volunteers planted more than 30,000 saplings at Tughlaqabad Biodiversity Park, under the Green Drive initiative launched by Times of India with Hero Moto Corp. & Delhi Development Authority. 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 Source: Delhi Economic Survey , State Budget , Annual Plan

39 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. New Delhi Municipal Council has been selected by the central government to be developed as a smart city. The smart sub cities in the state will have access to 24 hour water & power supply along with hi speed Wi-Fi connectivity & an efficient solid-waste management system. Nearly 24,000 acres of land across areas in Najafgarh, Kanjhawala & Narela is expected to be procured for the development of sub smart cities in the state. In June 2017, centre announced plans to develop 240 acres of land at Ghitorni district in South Delhi with smart city features worth over US$ 2.33 billion. Wi-Fi enabled smart poles have been installed in Connaught Place with LED lights and air quality sensors. As of January 2018, the New Delhi Municipal Council (NDMC) has completed 23 smart city projects. Source: Maps of India, Financial Express 39

40 KEY INDUSTRIES (1/2) The location advantage, policy incentives and infrastructure in the state support investments in sectors such as IT/ITeS, Banking & 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 & skilled economic activities. Initiatives would be taken for the modernisation of existing & inclusion of new industries such as those related to IT/ITeS. The plan emphasises industrial development without effluents, smoke and noise pollution. With the objective of promoting knowledge based industries & make Delhi a hub for clean, high-technology & skilled economic activities, the Industrial Policy for Delhi has being implemented in the state. Under the Annual Plan , the state government allocated US$ 4.73 million for the development of various industries in the state. 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 40

41 13.09% 3.49% 14.17% 2.92% 14.07% 3.28% 13.41% 2.82% 14.40% 2.97% 14.84% 2.90% 83.42% 82.91% 82.65% 83.77% 82.63% 82.26% KEY INDUSTRIES (2/2) Currently, the primary sector accounts for more than 82% of the state s income, while the secondary and tertiary sector account for 14.84% and 2.9%, respectively. Service sector accounts for the maximum share of GSVA between Key industries in Delhi BFSI Agri and processed food Construction and real estate IT and ITeS Tourism Logistics Sectoral composition of GSVA (per cent) 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Primary Secondary Tertiary Source: Central Statistics Office; Directorate of Economics & Statistics, Government of Delhi 41

42 KEY INDUSTRIES BANKING & FINANCIAL SERVICES SECTOR (1/4) The city is home to a number of private, public banks & financial services institutions. These business houses deal in banking transactions, documentations, negotiations, loan agreements, etc. The city also has commercial banks, industrial banks & some of the leading foreign banks. The service points are spread across the city. Connaught Place, Chandni Chowk & Barakhamba Road are the major points in the city where the key offices of a large number of organisations are located. At current prices, the contribution of financial services in the GSVA of the state stood at US$ billion in , accounting for per cent of the state s GSVA. Deposits and credit of scheduled commercial banks in Delhi by bank group (July-September 2017) Bank group No. of reporting offices Deposits (US$ billion) Credit (US$ billion) Metropolitan 3, Rural Semi-Urban Source: Reserve Bank of India Gross Value Added by Financial Services (US$ billion) Note: Exchange rate = Source: Directorate of Economics & Statistics, Government of Delhi 42

43 KEY INDUSTRIES BANKING & FINANCIAL SERVICES SECTOR (2/4) ATMs deployed in Delhi, June 2014 ATMs Deployed in Delhi, June Total Public Sector Banks Private Sector Banks 1539 State Bank Group 148 Foreign Banks in India Total 3565 Public Sector Banks 3148 Private Sector Banks 1548 State Bank Group 132 Foreign Banks in India ATMs Deployed in Delhi, June 2016 ATMs Deployed in Delhi, September Total Public Sector Banks Private Sector Banks 1616 State Bank Group 113 Foreign Banks in India Total 5,374 Public Sector Banks 3482 Private Sector Banks 1,574 State Bank Group 85 Foreign Banks in India Source Reserve Bank of India 43

44 KEY INDUSTRIES BANKING & FINANCIAL SERVICES SECTOR (3/4) Reliance Life Insurance Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part of Reliance-Anil Dhirubhai Ambani Group. Reliance Capital is one of India s leading private sector financial services companies & ranks among the top private sector financial services & banking companies in terms of net worth. It has interests in asset management & mutual funds, stock broking, life & general insurance, proprietary investments, private equity & 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. 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 & is the country's largest investor. It is fully owned by the Government of India. LIC has 8 zonal offices & 109 divisional offices located in different parts of India, at least 2048 branches located in different cities and 992 Satellite Offices (SOs) and a network of over 1 million agents for soliciting life insurance business from the public. It has a zonal office in the northern region at Connaught Place in Delhi. 44

45 KEY INDUSTRIES BANKING & FINANCIAL SERVICES SECTOR (4/4) State Bank of India The State Bank of India is the country s oldest bank & 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. United Bank of India United Bank of India is one of the 14 major banks, which were nationalised in July Its predecessor, the United Bank of India Ltd, was formed in 1950 with the amalgamation of 4 banks, viz., Comilla Banking Corporation Ltd (1914), Bengal Central Bank Ltd (1918), Comilla Union Bank Ltd (1922) & Hooghly Bank Ltd (1932). The bank has more than 1,600 branches & offices. In Delhi, the bank has branches located in Asaf Ali Road, Chandni Chowk, Chittranjan Park, Connuaght Circus, Daryaganj, etc. 45

46 KEY INDUSTRIES AGRI AND PROCESSED FOOD SECTOR (1/2) National Capital Region (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% annually. 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 sub-markets for trade of agricultural produce in Delhi. The main food trade markets are located in Narela, Azadpur, Morigate, Shahdara, Keshopur, Gazipur, Najafgarh and Mehrauli. Some of the key players 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 Milk and meat production in Delhi ( 000 MT) Milk Meat Source: Delhi Economic Survey

47 KEY INDUSTRIES AGRI AND PROCESSED FOOD SECTOR (2/2) Mother Dairy 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 & butter under the Mother Dairy brand, the Dhara range of edible oils & the Safal range of fresh fruits & vegetables, frozen vegetables & fruit juices, at the national level through its sales & distribution networks for marketing food items. Mother Dairy milk has a market share of around 66.0% in the branded sector in Delhi, where it sells 2.5 million litres of milk daily & 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% market share in Delhi-NCR. The company has a dairy manufacturing plant at Patparganj & a fruit & vegetable plant at Mangolpuri Industrial Area. It also has a distribution facility with an annual handling capacity of 200,000 tonnes of fresh fruits & vegetables. Kohinoor Foods Ltd Hind Agro Industries 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 & cooking pastes to spices, seasonings & frozen food. It has a strong market presence not only in India but also in the US, the UK, Dubai, Canada, Japan, Australia, Singapore & other European countries. It has an office in Greater Kailash in New Delhi. During the first half of , the total income of the company stood at US$ million. Hind Agro Industries Ltd has Asia s most modern abattoir-cum-meat processing plant at Aligarh in Uttar Pradesh. It is a JV of Hind Industries Ltd & the Government of Uttar Pradesh & is assisted by the Government of India. The company has an APEDA-certified production capacity of 400 tonnes. 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. 47

48 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. 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% while the affordable & mid segment houses accounted for 58% and 25% respectively. Delhi Development Authority 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. In November 2015, Government of India announced reduction in FDI norms in real estate & construction sector in order to boost the affordable housing sector. Thus, any project under construction, irrespective of the size would have access to FDI. Delhi government has sanctioned a sum of US$ million for Housing & Urban Development, in the state budget of Moreover, government announces plans to increase the total capacity in night shelters to 21,724. Real estate & construction sector s contribution to GSDP (US$ billion) The government had allocated a sum of US$ million to Jawaharlal Nehru National Urban Renewal Mission (JNNURM) under Annual Plan , for providing housing facilities to weaker section. The DSIIDC constructed EWS houses under JNNURM. Source: Delhi Economic Survey

49 KEY INDUSTRIES CONSTRUCTION AND REAL ESTATE SECTOR (2/3) DLF Ltd Unitech Supertech Limited 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 & retail properties. DLF has been in this industry for over 60 years & has developed homes, offices, malls, SEZs, hotels & infrastructure projects. DLF developed some of the 1st residential colonies in Delhi such as Krishna Nagar in East Delhi. It started off with its 1st landmark real estate development project Qutub Enclave (DLF city) & then proceeded to build the Gurgaon township. Now, it has pan-india presence, with its properties being developed in almost all the Tier I & II pan India. In Delhi, in the commercial sector, DLF has built infrastructure in Vasant Kunj, Saket & Mayur Vihar. It has also developed some office spaces. The corporate office of the company is located in Delhi. In , total consolidated revenue of the company stood at US$ 1.39 billion and US$ 0.34 billion during Q 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 & hotels. Unitech was the 1st 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 & a water park. The registered office of the company is located in Delhi. The Quarter and nine months ended total standalone revenue of the company, as of 31 st December 2016, stood at US$ million and US$ 61.8 million during Q Unitech has successfully entered the North Africa & Middle East real estate market. The company boasts of long relationships with internationally acclaimed architects & design consultants, including SOM (USA), BDP (UK), Maunsell AECOM (HK), MEA Systra (France), Callison Inc (US), FORREC (Canada), SWA & HOK (US). Has converted more than 33 million sq ft of residential & 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. 49

50 KEY INDUSTRIES CONSTRUCTION AND REAL ESTATE SECTOR (3/3) Parsvnath Developers Ltd Parsvnath Developers Ltd is one of India s leading real estate developers, with pan-india presence across 44 cities in 15 states. Parsvnath Developers Ltd has a diversified portfolio, which includes integrated townships, group housing, commercial complexes, hotels, IT parks, Build-Operate-Transfer (BOT) projects, SEZs and thirdparty contracting. The company has successfully completed 55 projects & 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 company recorded total income of US$ million and US$ 76 million during Q Parsvnath Developers Ltd is an ISO 9001, & OHSAS certified company. Ansal API 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. 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 & 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 highrise commercial buildings such as the Statesman House. 50

51 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 & 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% 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 & boosting software exports from India, is located in New Delhi. As per the new Industrial Policy for Delhi , the Government is keen on developing & promoting the hi-tech, sophisticated, knowledgebased IT & ITeS industries in the state. For this, the Government has planned to set up Centre of Excellence to promote innovation & entrepreneurship in the sectors. Evidently, the state government formally approved one SEZ for IT at Village Baprola, Delhi, as of July Crown Business Park on Delhi-Badarpur border has come up, helping the IT boom in the region. 51

52 KEY INDUSTRIES IT, ITES AND OTHER KNOWLEDGE-BASED INDUSTRIES (2/2) Snapdeal Jabong Makemytrip Lenskart 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 more than 5,000 employees and offers more than 12 million products. With the acquisition of Freecharge in 2015, Snapdeal became one of the largest mobile commerce companies in the country. 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 The company has tie-ups with some reputed partners, such as, Tripda, Print Venue, Price Panda, Food Panda, etc. In July 2016, the company was acquired by Flipkart owned ecommerce platform Myntra. Makemytrip is an Indian online travel company, incorporated in 2000 & headquartered in Gurgaon. Apart from online services, the company also operates through 59 retail stores across 37 cities in India. The company provides services to book all major domestic airlines, over hotels & guesthouses in India & 190,000 hotels abroad. The revenue of the company was recorded to be US$ 120 million during the 4 th quarter of Makemytrip has about 1800 employees. In April 2015, the company acquired My Gola, a travel guide start-up company. Founded in 2010, Lenskart is an Indian online portal company for eyewear products. It is supplying a wide range of sunglasses, eyeglasses & contact lenses & has more than 900 employees. In 2014, Lenskart introduced its 1st franchisee store in Chandigarh. As of July 2017, the company has 300 stores across 90 cities of India. Other than India, the company also delivers in several other countries, such as Australia, UK, US, etc. Yepme Yepme is an online shopping company with headquarters in Gurgaon, Haryana. It was incorporated in April 2011 & is engaged in the sales of garments & accessories. The company delivers about 5 lakh units every month to its customers & services over a thousand cities. Source: Company Website & Annual Report 52

53 KEY INDUSTRIES TOURISM (1/2) Owing to its geographic advantage, Delhi is a key arrival point for foreign tourists. During (up to December 2016), the state registered foreign tourist arrivals (FTA) at 2.46 million (27.77% of the total FTA in India) as against that of 2.38 million in The percentage share of FTAs in Delhi was highest in December 2017 at 25.80%. Delhi is among the top tourist destinations in India and received million domestic tourist and 2.52 million foreign tourists in Under the 12th Five Year Plan for , the Government of Delhi allocated US$ million to tourism sector Tourist arrivals in Delhi (in millions) Foreign Tourists Domestic Tourists To promote tourism in Delhi, the state government has set up 2 adventure parks in the areas of Mayur Vihar in East Delhi & Garden of 5 Senses in South Delhi Delhi was ranked the best tourist destination in India in Source: Ministry of Tourism, Hotelivate India State Ranking Survey Government expenditure on tourism (in US$ million)

54 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 5 Senses, Humayun's Tomb, India Gate, Jama Masjid, Jantar Mantar, Lodi Tomb, Parliment House, Purana Quila, Qutab Minar, Safdarjang Tomb & Red Fort. In July 2017, Ministry of Tourism, Government of India in partnership with FICCI & Tourism Finance Corporation of India organised the third edition of Tourism Investors Meet in Delhi. Tourism Investor Meet (participant sectors) Hotels Real estate developers Multiplexes and malls Roadways developers 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 Film studios Airport developers Mega convention centres Heli & air services 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 Source: Ministry of Tourism 54

55 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 & Infrastructure Development Corporation Ltd & 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. 55

56 KEY APPROVALS REQUIRED (1/5) Approvals and clearances required List of procedures Departments Estimated time Obtain Director Identification Number (DIN) online from the Ministry of Corporate Affairs portal (national) 1 day Registration for starting a new business Obtain digital signature certificate online from private agency authorised by the Ministry of Corporate Affairs (national) Reserve the company name online with the Registrar of Companies (ROC) (national) Authorised agent 3 days 2 days Stamp the company documents at the State Treasury (state) 2 day Get the certificate of incorporation from the Registrar of Companies, Ministry of Corporate Affairs (national) ROC 5 days 56

57 KEY APPROVALS REQUIRED (2/5) Approvals and clearances required List of procedures Departments Estimated time Make a seal (private) Obtain a Permanent Account Number (PAN) from an authorised franchise or agent 1 Authorised agent 1 day 12 days Registration for starting a new business Obtain a Tax Account Number (TAN) for income taxes deducted at source from an authorised franchise or agent 1 Register for Value-Added Tax (VAT) at the Commercial Tax Office (state) 1 12 days 9 days Register with Employees' Provident Fund Organisation (national) 1 Register for medical insurance at the regional office of the Employees State Insurance Corporation (national) 1 Central and state excise 13 days 15 days 1Parallel activity 57

58 KEY APPROVALS REQUIRED (3/5) Approvals and clearances required List of procedures 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) House Tax Department 18 days Notarise the affidavit/undertaking (private sector) 1 Apply for building permit at the Municipal Corporation of Delhi (MCD) Obtaining construction permit Receive inspection of the site by the Municipal Corporation of Delhi (municipal) MCD, Delhi 67 days Obtain building permit from the Commissioner of the Municipal Corporation of Delhi (municipal) Hire an independent electricity contractor and obtain load approval (private) Apply for permanent electricity connection with the BSES (private) BSES 3 days Receive on-site inspection by BSES (private) 1Parallel activity 58

59 KEY APPROVALS REQUIRED (4/5) Approvals and clearances required List of procedures 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 Obtaining construction permit Apply for permanent water & sewerage connections to Delhi Jal Board (municipal) Apply for permanent phone connection at Bharat Sanchar Nigam Limited (national) 1 Receive an initial on-site inspection from Delhi Jal Board (municipal) 1 Obtain permanent water & sewerage connection from the Delhi Jal Board Obtain permanent electricity connection from BSES (private) 1 Obtain phone connection (with inspection) from the BSNL (national) 1 Respective authorities 63 days 1Parallel activity 59

60 KEY APPROVALS REQUIRED (5/5) Approvals and clearances required 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 Registering property in New Delhi The final sale deed is prepared by the buyer or his lawyer (private) 1 Execute and register the final sale deed at the office of sub-registrar (state) 11 days Apply to the circle revenue office for mutation of the property title (state) 40 days 1Parallel activity 60

61 REGISTRATION - SMALL SCALE INDUSTRIES Small-scale industries registration has been simplified & replaced by memorandum under the MSMED Act Furthermore, filing of the memorandum is optional for micro, small & medium manufacturing enterprises & micro & small service enterprises. The MSMED Act 2006 defines Manufacturing enterprises in terms of investment in plant and machinery, excluding land & buildings Service enterprises in terms of investment in equipment Classification Enterprise Investment Filling memorandum Micro enterprise US$ 0.05 million Optional Manufacturing Small enterprise US$ million Optional Medium enterprise US$ million Optional Micro enterprise US$ 0.02 million Optional Service Small enterprise US$ million Optional Medium enterprise US$ million Mandatory 61

62 KEY INVESTMENT PROMOTION OFFICES State Level Export Promotion Committee (SLEPC) has been constituted to draw export policy & action plan & approve infrastructure projects for financial assistance under Assistance to States for Developing Export Infrastructure & 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 Delhi Financial Corporation Delhi State Industrial and Infrastructure Development Corporation Limited (DSIIDC) Delhi Khadi and Village Industries Board The Department of Industries, Government of NCT of Delhi Description This organisation provides financial assistance for industrial and commercial activities in the state. It is involved in providing infrastructure and marketing facilities to industries. It offers financial assistance to specific types of small scale industries (khadi and village industries). This organisation serves as the nodal agency to plan, promote and develop industries in the state. 62

63 CONTACT LIST Agency Delhi Financial Corporation (DFC) Delhi State Industrial Development Corporation Limited (DSIIDC) Delhi Khadi and Village Industries Board Contact information Plot No 37 and 38, Institutional Area, Pankha Road, D-Block Janakpuri, Delhi Phone: Fax: N-Block, Bombay Life Building, Connaught Circus, New Delhi Phone: Website: Delhi Financial Corporation Building, 5 th 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

64 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) Power cost (per kwh) Un-skilled: US$ 5.9 Semi-skilled: US$ 6.5 Skilled: US$ 7.1 Commercial: US$ 0.13 to US$ 0.15 Industrial: US$ 0.11 to US$ 0.14 Residential rent (per sq ft per month) US 23 cents to US 105 cents Five-star hotel room (per night) US$ 190 to US$ 415 Water (per 1,000 litres) Industrial: US cents to US cents Delhi Electricity Regulatory Commission, Delhi Jal Board, Government of National Capital Territory of Delhi, Ministry of Labour and Employment, Government of India, Industry sources 64

65 ACHIEVEMENTS & INITIATIVES UNDER GOVERNMENT PROGRAMMES In the Swachh Survekshan 2017, Delhi was ranked 7 th, three positions below its previous ranking of 4 th. In the state budget of , government has allocated US$ million for water supply and sanitation facilities. Under the Digital India movement, Delhi Police launched Himmat, which is an emergency service, comprising of an android emergency application, which can send a distress call or emergency message to Delhi Police officials and specified contact or group in an emergency situation faced by a woman. The Police personnel will get these SOS alerts and locations on a portal and as an SMS on their mobile phones as well. 65

66 STARTUP ECOSYSTEM IN NCR The National Capital Region has a thriving startup ecosystem and is home to more than 8,772 startups with the highest number of online retail startups in India. Major online startups like Ibibo, Lenskart, Paytm, Snapdeal, Shopclues, Polilcy Bazaar are based in the region. Delhi-NCR witnessed the highest number of deals in the startup space in Delhi-NCR received 33% of all angel investments in India in Funding received by startups in NCR in 2016 Company Investor Deal Size Snapdeal Ontario Teachers Pension Plan US$ 200 million CarTrade Temasek, Marche Capital, Warburg Pincus US$ 145 million Ibibo Group Naspers US$ 250 million Shopclues GIC, Tiger Global Management, Nexus Venture Partners US$ 100+ million Lenskart IFC, TPG Growth, IDG Capital Partners, Adveq US$ 60 milliom Source: InnoVen Capital, Economic Times, Tracxn 66

67 STARTUP POLICIES In 2016, Delhi Government launched incubation policy to promote entrepreneurship among the youths in the city. State Government distributed seed money of US$ 0.23 million each to six higher educational institutions, under the scheme. In H1 2016, NCR maintained its lead over Bengaluru, which is called the Silicon Valley of India, both in terms of number of funding deals, as well as total funding raised. Startups in NCR raised a total of US$ 3.35 billion in funding across 138 deals, whereas, Bengaluru raised US$ 2.56 billion from 129 deals In budget , state government announced plans to spend US$ 43.9 million to build World Class Skill Centre in Jaunapur. 67

68 STATE ACTS AND POLICIES (1/3) Objectives The government has allocated a sum of US$ million for opening new Primary Health Centers. Medical Policy for Government is supplementing the Universal Immunisation Programme by implementing the Indradhanush Kawach in a mission mode to cover all left out children. The health Department, GNCTD has decided to set up a Health Project Division for Planning and execution of all health sector projects of Department of Health & Family Welfare, GNCTD. Excise Policy for 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 Water Policy 2015 To ensure adequate and affordable water supply to the residents of the state. To ensure balance of environment along with development. Read more Delhi Solar Energy Policy 2015 To generate 1,000 MW of solar power in the next five years To promote solar energy and installation of solar panels on roof-tops of every government building Read more 68

69 STATE ACTS AND POLICIES (2/3) Objectives Delhi Electricity Regulatory Commission (Demand Side Management) Regulations, 2014 New Land Pooling Policy Industrial Policy for Delhi 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. 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% of developed land. For areas above 20 hectares, private developers will be able to retain 60% of the developed land. Read more 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 Read more 69

70 STATE ACTS AND POLICIES (3/3) 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. Transport Policy 2002 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 The IT policy is governed by six Es : electronic governance, equality, education, employment, entrepreneurship and economy. Information Technology Policy 2000 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 70

71 EXCHANGE RATES Exchange Rates (Fiscal Year) Year INR equivalent of one US$ Q Q Source: Reserve Bank of India 71 Gujarat

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