HARYANA AUGUST 2015 THE BREAD BASKET OF INDIA. For updated information, please visit

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2 Executive Summary...3 Advantage State...4 State Vision Haryana An Introduction...6 Budget Infrastructure States...19 Business Opportunities...44 Doing Business in Haryana...62 State Acts & Policies

3 EXECUTIVE SUMMARY Strong economic growth With an area covering 1.3 per cent of the country, Haryana contributes nearly 3.5 per cent to India s GSDP. During , the state s GSDP grew at a CAGR of per cent. Haryana is home to Maruti Udyog Ltd, India s largest passenger car manufacturer, and Hero MotoCorp Ltd, the world's largest manufacturer of two-wheelers. Under Make in India project, Manesar-Bawal Investment Region is identified by the Government to be a manufacturing hub. Haryana is the second-largest contributor of food grains to India s central pool. The state accounts for more than 60 per cent of the export of Basmati rice in the country. Haryana is the third-largest exporter of software and one of the preferred destinations for IT/ITeS facilities. Leading manufacturing hub Leading food producer Growing IT sector Infrastructure support The state invested in the development of world class infrastructure facilities such as special economic zones (SEZs), Kundli-Manesar-Palwal (KMP) global corridor and DelhiMumbai Industrial Corridor (DMIC). Haryana enjoys a locational advantage, with nearly one-third of the state s area under the National Capital Region (NCR), a prominent trade and consumption centre. The state has almost 100 per cent connectivity to rural areas, with metalled roads. Source: Directorate of Economics & Statistics of Haryana, Central Statistics Office, Economic Survey of Haryana

4 ADVANTAGE NSDP US$ 70.8 billion Rich labour pool Attractive investment avenues Leading business hub Growing demand Haryana is one of the leading states in terms of industrial production, especially passenger cars, two-wheelers, mobile cranes and tractors. The Gurgaon-Manesar-Bawal belt is the auto hub of India. Haryana has emerged as a base for the knowledge industry, including IT and biotechnology. Many large Indian and multinational companies have set up offices in the state due to its high-quality infrastructure and proximity to Delhi. Advantage Haryana Haryana has a large base of skilled labour, making it an ideal destination for knowledgebased and manufacturing sectors. It also has a large pool for support services. The state has set up various national-level institutions such as Indian Institute of Management (IIM), Indian Institute of Corporate Affairs (IICA), Central Institute for Plastics Engineering & Technology (CIPET) and National Institute of Food Technology & Entrepreneurship & Management (NIFTEM). Haryana has emerged as a manufacturing hub, with immense scope for development of micro, small and medium enterprises (MSMEs) sector. The state adopted a cluster-based development approach to promote industries such as IT, textiles, food and handloom. The state s real estate market is attractive and it is a preferred automotive hub. Of the total 250 large and medium OEMs, about 50 are located in Haryana. GSDP : US$ 72.2 billion Policy and infrastructure support With a stable political environment, successive governments have been committed to creating a progressive environment. The state offers a wide range of fiscal and policy incentives for businesses under the Industrial and Investment Policy, Moreover, it has sector-specific policies, particularly for IT and tourism. Haryana has a well-developed infrastructure such as power, roads and railways. For promoting trade, the state has planned several projects. 4

5 STATE VISION 2018 Develop IMTs, industrial parks & expand industrial estates Create E-biz portal to ensure ease of doing business. Address needs of MSMEs in areas of R&D and technology; develop rail connectivity to airports, etc. Contain revenue & fiscal deficit. Commencement of mining & etaxation projects would reduce revenue deficit. Manage surface water resources efficiently. Improve water availability by pursuing upstream storage dams. Implement schemes for remodelling, rehabilitate water courses, flood control. Timely availability of quality feedstock at subsidised rates. Modernise irrigation systems. Pursue crop diversification & introduce modern technologies. Economy Infrastructure Irrigation Housing Vision 2018 Agriculture Tourism Welfare Education Ensure availability of affordable housing for all. Provide financial assistance for construction. Offer loans at reasonable terms to BPL families. Schemes to develop SC, BC and other vulnerable sections of society. Healthcare for women and children. Modernise police department. Fully utilise nature s endowment. Create network of business and tourism facilities. Improve quality of education and access to schools. Expand college and university network. Enhance sports education and infrastructure to prepare people for competing at international & national events. Source: Government of Haryana 5

6 FACT FILE The state has three major seasons, viz., summer (AprilJune), monsoon (July-September) and winter (OctoberMarch). Parameters Haryana Capital Source: Maps of India Haryana is surrounded by Uttar Pradesh in the east, Punjab in the west, Himachal Pradesh in the north and Rajasthan in the south. The state surrounds the national capital city, New Delhi, from three sides. The most commonly spoken languages are Hindi and Punjabi. English is the medium of education in most schools. Gurgaon, Faridabad, Karnal, Ambala, Panipat Kurukshetra are some of the key districts of the state. and Chandigarh Geographical area (sq km) 44,212 Administrative districts (No) 21 Population density (persons per sq km) 573 Total population (million) 25.4 Male population (million) 13.5 Female population (million) 11.9 Sex ratio (females per 1,000 males) 881 Literacy rate (%) 76.6 Source: Economic Survey of Haryana , Census

7 IN FIGURES (1/2) Parameter Haryana All states Economy Directorate of Economics & Statistics of Haryana, Central Statistics Office GSDP growth rate (%) Directorate of Economics & Statistics of Haryana, Central Statistics Office Per capita GSDP (US$) 2, , Directorate of Economics & Statistics of Haryana, Central Statistics Office 8,790.41* 272, Central Electricity Authority, as of May 2015 Wireless subscribers (No) 21,995,215** 973,347,094 Telecom Regulatory Authority of India-April 2015 Broadband subscribers (No) 1,047,780*** 100,760,000 Telecom Regulatory Authority of India-April 2015 National highway length (km) 2, , National Highway Authority of India April Airports Authority of India Gross state domestic product (GSDP) as a percentage of all states GSDP Source Physical Infrastructure Installed power capacity (MW) Airports (No) *As of June 2015, **As of May 2015, ***As of March

8 IN FIGURES (2/2) Parameter Haryana All states Source Literacy rate (%) Census, 2011 Birth rate (per 1,000 population) SRS Bulletin, September * Department of Industrial Policy & Promotion, April 2000 to March ,414.2 CMIE ( ) PPP projects (No) 41 1,409 DEA, Ministry of Finance, Government of India SEZs (formally approved) Notified as of March 2015, Ministry of Commerce & Industry Social Indicators Investment FDI equity inflows (US$ billion) Outstanding Investments (US$ billion) Industrial Infrastructure *Includes Delhi, Haryana and parts of UP 8

9 NEW INITIATIVES Launched Priyadarshini Awaas Yojna (PAY) in the budget for providing affordable housing to weaker sections in rural areas. In , the Government of Haryana paid US$ 415 million to the beneficiaries of the scheme. Constitution of Haryana Infrastructure Development Board that implemented projects worth more than US$ 9,206 million during Projects in six core sectors, viz., roads and highways, healthcare, education and skill development, tourism, urban transport system and water supply, sanitation and public utilities in both urban and rural areas. For infrastructure investment, a US$ 141 million economic stimulus package was released in Under Indira Gandhi Drinking Water Scheme, free water connections will be provided to SC households in rural and urban areas. Establish a sustainable drinking water project for Mewat area on Ranney Wells. Implemented Indira Bal Swasthya Yojana (2010) for early detection of disease, deficiency and disability (0-18 years age group). Rashtriya Krishi Vikas Yojna (RKVY) under National Agriculture Development Programme was launched with an aim of 4 per cent growth rate in agriculture for This scheme is a state plan scheme. The sector witnessed a growth rate of 2.61% in over Under Mukhya Mantri Muft Ilaj Yojana, all medical treatments including free surgeries till secondary and tertiary level under Surgery Package Programme will be provided to all residents of Haryana and free supply of essential medicines to all patients in OPD/IPD/Emergency, are provided at state government health institutions including medical colleges. An outlay of US$ 96.6 million has been allocated towards Department of Panchayats in Haryana for Source: Central Statistical Organisation 9

10 ECONOMIC SNAPSHOT GSDP GSDP of Haryana at current prices (in US$ billion) At current prices, the total GSDP of Haryana was about US$ 72.2 billion in The state s GSDP increased at a compound annual growth rate (CAGR) of per cent between and CAGR 12.93% 37.6 Growth was driven by expansion in the services sector, IT/ITeS, real estate, biotechnology and tourism Source: Directorate of Economics & Statistics of Haryana, Central Statistics Office 10

11 ECONOMIC SNAPSHOT NSDP NSDP of Haryana at current prices (in US$ billion) At current prices, the net state domestic product (NSDP) of Haryana was about US$ 70.8 billion in The state s NSDP expanded at a CAGR of per cent between and CAGR 12.87% Source: Directorate of Economics & Statistics of Haryana, Central Statistics Office 11

12 ECONOMIC SNAPSHOT PER CAPITA GSDP Per capita GSDP of Haryana at current prices (in US$) The state s per capita GSDP in was US$ 2,723 compared with US$ in The per capita GSDP increased at an average rate of per cent between and CAGR 11.21% Source: Directorate of Economics & Statistics of Haryana, Central Statistics Office 12

13 ECONOMIC SNAPSHOT PER CAPITA NSDP The state s per capita NSDP in was US$ 2,670 compared with US$ in Per capita NSDP of Haryana at current prices (in US$) Per capita NSDP increased at an average rate of per cent between and CAGR 12.17% Source: Directorate of Economics & Statistics of Haryana, Central Statistics Office 13

14 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP Tertiary sector is the largest contributor to Haryana s economy. In , it contributed 53.4 per cent to the state s GSDP at current prices. It was followed by the secondary sector at 26.4 per cent. GSDP composition by sector CAGR 44.0% 15.1% The tertiary sector grew at an average rate of 15.1 per cent between and The growth was led by trade, hotels, real estate, finance, insurance, transport and communications. The secondary sector grew at an average rate of 10.6 per cent between and Its growth was driven by manufacturing, construction, and electricity and gas & water supply. 32.7% 10.6% 23.3% 11.3% 26.4% 20.2% Primary Sector 53.4% Secondary Sector Tertiary Sector The primary sector grew at an average rate of 11.3 per cent between and Source: Directorate of Economics & Statistics of Haryana, Central Statistics Office 14

15 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION Wheat, sugarcane, rice, cotton, rapeseed and mustard are key agricultural products of the state. Crop Annual production in ( 000 tonnes) Total food grain production is estimated to have reached million tonnes in Wheat 11,399 Sugarcane 8,418 In , the average yields of wheat and rice in Haryana were 4,600 and 3,172 kg per hectare, respectively. In , the average yields of wheat and rice in Haryana were estimated at 4,722 and 3,256 kg per hectare. Rice 3,753 Cotton 1,876 Oilseeds 1,002 During , production of oilseeds and sugarcane was estimated at 1 million tonnes and 8.42 million tonnes, respectively. Potato 690 Onion 644 Pulses 56 Source: Economic Survey of Haryana, , Ministry of AgricultureDepartment of Agriculture & Cooperation, Government of India, TechSci Research, Note: 000 bales of 170 kg each 15

16 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to the Department of Industrial Policy & Promotion (DIPP), cumulative foreign direct investment (FDI) inflows from April 2000 to March 2015 reached US$ billion. FDI equity inflows, to (in US$ million)* 8114 The services sector accounted for a major share in FDI followed by real estate and electricity. Key projects under execution include an integrated refinery-cum-petrochemical complex of Indian Oil Corporation expanding to 18 MMT/yr from 15 MMT/year and a coal-based supercritical thermal power project of Aravali Power whose phase-ii has to be constructed with 1,320 MW capacity Source: Department Of Industrial Policy & Promotion, *Includes Haryana, Delhi, part of UP 16

17 ECONOMIC SNAPSHOT EXPORT TRENDS Exports from Haryana (US$ billion) Total industrial exports from Haryana increased from US$ 5.6 billion during to US$ 12.7 billion during The setting up of SEZs in biotechnology, handicrafts, etc., exports in the state CAGR 9.53% sectors like IT/ITeS, has helped increase Source: Department of Economic and Statistical Analysis, Haryana Economic Survey , TechSci Research estimates 17

18 BUDGET Sectoral allocation In US$ million Irrigation Power 1, Education, sports, art & culture 1, Technical education & industrial training Health, medical education & family welfare Public health engineering Social welfare, nutrition & welfare of SCs & BCs Industries & minerals Transport Agriculture & allied services Police Roads & buildings Rural development Urban development Source: Haryana Budget , Department of Finance, Government of Haryana 18

19 PHYSICAL INFRASTRUCTURE ROADS Haryana has 2, km of national highways. The state has a total road network of 26,428.5 km, of which state highways constitute 2,064 km. Haryana is among the states having almost 100 per cent connectivity to rural areas with metalled roads. Haryana Roadways, with its fleet of nearly 3,755 buses, is one of India s biggest state road transport undertakings. The state government and Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) plan to develop a global corridor along the Kundli-Manesar-Palwal (KMP) western expressway. As of July 2015, the construction work on Kundli-Manesar stretch has been started and is expected to be completed by January, Kundli-Manesar-Palwal (KMP Expressway) is a km long expressway being constructed in the state, with an estimated cost of US$ million. In 2013, the government has approved multiple highway projects in Haryana under its flagship road building programme National Highways Development Project (NHDP). As of December 2014, the government announced plans to construct seven roads viz. Ghaziabad-NoidaFaridabad-Sohna, Nuh-Mandkola-Palwal-Jewar-Bulandshahar, Sohna-Ballabhgarh-Tigaon-Gautambudh Nagar-Deota-Sikandrabad, Palwal-Aligarh, Hodal-Bhiruki-Hasanpur-Kashipur-Kushak-Barauli-Ghori-Dadota-Mohna-Arwa-Chandpur-Manjhawali, Faridabad (Kheri Bridge)-Jasana-Cheersi-Manjhawali-Atta-Gujran-Dankor-Yamuna Expressway and Kaithal-Pehowa-Kurukshetra-Radaur-YamunaNagar. The combined length of the roads to be constructed is estimated to be around 468 km. Kaithal-Rajasthan Border Section of NH-152/65 Project, estimated to cost US$ million is a 166 km highway, which would connect Ambala with important towns such as Kaithal, Barwala and Hisar up to the Rajasthan border. Source: Economic Survey of Haryana, , Ministry of Road Transport & Highways, Government of India, News articles 19

20 PHYSICAL INFRASTRUCTURE RAILWAYS As of August 2015, Haryana had a 1,630-km long rail route. Kalka, Kurukshetra, Rohtak, Jind, Hisar, Ambala, Panipat, Gurgaon and Jakhal are some of the important railway stations. There is a railway workshop at Jagadhari. The recent rail budget includes setting up a rail coach manufacturing unit in Sonipat. The manufacturing capacity of the factory is estimated to be around 1,000 coaches per annum. As of November 2014, 400 acres of land has already be allotted for establishment of factory. Rail services would be introduced to Mewat, and new lines would connect Delhi-Sohna-Nuh-Ferozepur, Jhirka-Alwar and Hisar-Sirsa via Agroha and Fatehabad. Delhi-Faridabad metro is expected to be operational by May, 2016 with a US$ 415 million investment. The state government will provide 50 per cent of the US$ million fund for implementing three railway line projects: Delhi-Sohna-Nuh-Ferozpur Jhirka-Alwar (104 km), Hisar-Agroha-Fatehabad-Sirsa (93 km) and YamunanagarSadhora-Naraingarh-Chandigarh (91 km). The Delhi Metro, a rapid transit system, connects Delhi and Gurgaon. In December 2014, in-principle approval was provided for the extension of the Metro from YMCA Chowk in Faridabad to Ballabhgarh. As of May 2015, the project has been approved by the Haryana cabinet. The cabinet increased the amount of sanctioned fund to US$ 94 million from US$ 77 million Also, possibilities of Faridabad-Gurgaon Metro Link project will also be explored. As of January 2015, the project has been finalised by the Government of Haryana and the initial phase of study has been completed. The Rapid Metro Rail, Gurgaon, India s first fully privately funded Metro Rail system Phase-l got operational in November The Rapid Metro connects cyber city, National Highway-8 and the existing Sikanderpur metro station on the Yellow Line of Delhi Metro. Its Phase-ll is expected to be operational by the end of Source: Maps of India Source:

21 PHYSICAL INFRASTRUCTURE AIRPORTS There is a domestic airport at Chandigarh and civil aerodromes at Pinjore, Karnal, Hissar, Bhiwani and Narnaul. The state has a total of 8 airports, which includes both operational and non-operational airports. The Indira Gandhi International (IGI) Airport at New Delhi is located close to Gurgaon and Faridabad. In addition, the state government plans to set up three airports two for domestic flights and one for cargo. An international cargo airport and aircraft maintenance hub is proposed in Rohtak, Haryana. The airport would be built in the PPP mode with HSIIDC. On August 3, 2015, the Government of India acknowledged the proposal of Haryana State Industrial and Infrastructure Development (HSIIDC), and asked to modify the proposition for commercial airport set up in place of cargo airport. Hisar airport would be set up over an area of 490 acres and Karnal airport would be set up over 499 acres of land and both facilities would be equipped with modern facilities related to the civil aviation industry. As of June 2015, the project has been cleared by the Government of Haryana. The government is currently in the process of preparing the detailed project report and is planning to engage the Union Civil Aviation Ministry in order to grant in-principle approval for the proposed airport. International airport Domestic airport Civil aerodrome 21

22 PHYSICAL INFRASTRUCTURE POWER (1/3) As of June 2015, Haryana had a total installed power generation capacity of 8, MW; of this, 4,128.4 MW is owned by the state government, 2,242.8 MW by the central government and 2,418.8 MW by the private sector. State owned capacity comprised 47.8 per cent of total capacity, private capacity comprised of 25.5 per cent and central government formed 27.5 per cent of the overall capacity. Private sector capacity was based mostly on coal-based power plants and renewable energy sources. Installed power capacity (MW) Classification of installed thermal power capacity (March 2015) 1% CAGR 11.2% % % 6882 Thermal Hydro 5071 Nuclear Renewable Energy 81% Source: Central Electricity Authority 22

23 PHYSICAL INFRASTRUCTURE POWER (2/3) Haryana has had 100 per cent rural electrification since Operational projects (as of October 2012) Domestic consumers use about per cent of total power consumption; agriculture and commercial are two other prominent consumer segments. In its Annual Plan , the state government has allocated US$ 1.09 billion, which is 8.27% of the total expenditure of the government. Segment Company name Power generation Haryana Power Generation Corporation Ltd (HPGCL) Haryana Vidyut Prasaran Nigam Ltd (HVPNL) Power transmission and distribution Source: Haryana Power Generation Corporation Ltd Economic Survey , Annual Budget , TechSci Research Dakshin Haryana Bijli Vitran Nigam (DHBVN) Subsidiary of HVPNL Uttar Haryana Bijli Vitran Nigam (UHBVNL) Subsidiary of HVPNL 23

24 PHYSICAL INFRASTRUCTURE POWER (3/3) The total number of electricity consumers in the state has increased from 3,544,380 in to 5,498,797 in *. In its Annual Plan , the Haryana government has provided an outlay of US$ 1.09 billion for power restructuring, which includes power entities and renewable energy entities. To produce power from bagasse cooperation in sugar mills, 6 projects of 60 MW capacity have been established in cooperative sugar mills of the state in Furthermore, a 25 MW capacity project at Naraingarh sugar mill is under execution. During , the state government has launched a special project for installation of 1,260 LED-based solar lighting systems and a 180 KW solar power plant is under installation which involves investment of US$ 0.88 million in 12 districts, namely, Ambala, Fatehabad, Bhiwani, Hisar, Jhajjar, Kaithal, Kurukshetra, Palwal, Panipat, Rohtak, Sonipat, and Yamuna Nagar. Proposed projects 1,500 MW gas-based project at Faridabad 660 MW capacity thermal unit at Yamuna Nagar 2,800 MW (4x700 MW) nuclear power plant near Fatehabad Projects under implementation 1,320 MW Mahatma Gandhi Thermal Power Project, at Jhajjar Procurement of 2,113 MW on a long term basis through tariff based competitive bidding Source: Haryana Power Generation Corporation Ltd; Economic Survey ; Haryana Budget Highlights, , TechSci Research Note: *As of November 2014 Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam have earmarked a sum of US$ 686 million to augment the power distribution system in the state. 24

25 PHYSICAL INFRASTRUCTURE TELECOM According to the Telecom Regulatory Authority of India (TRAI), Haryana had nearly million wireless subscribers and 394,024 wireline subscribers as of May There were 1,047,780 broadband subscribers in the state as of March The tele-density of Haryana was 82 per cent as of March At the end of March 2014, the state had 1,121 electronic telephone exchanges and 7,525 public call offices (PCOs). Telecom infrastructure (May 2015) Wireless subscribers 21,995,215 Wireline subscribers 394,024 Broadband subscribers 1,047,780* Public call offices (PCOs) 7,525^* Electronic telephone exchanges 1,121* Some major telecom operators in Haryana Bharat Sanchar Nigam Ltd (BSNL) Bharti Airtel IDEA Cellular Vodafone Essar Reliance Communications Tata Teleservices Aircel Ltd Source: Telecom Regulatory Authority of India; Department of TelecommunicationsMinistry of Communications & Information Technology, TechSci Research ^Working public call offices (PCOs) of BSNL/MTNL (excluding VPTs) as of 31st May 2014, *As of March

26 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE Under the Urban Infrastructure and Governance (UIG), Jawaharlal Nehru National Urban Renewal Mission (JNNURM), four projects costing US$ million have been sanctioned for Faridabad. The projects were sanctioned between and Some key areas of development are water supply, storm water drainage and solid waste management. A provision of US$ million has been made for approved projects under Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) as of February 2015, US$ million under Integrated Housing and Slum Development Programme (IHSDP) as of January 2015 and US$ million under the Rajiv Gandhi Urban Development Mission, Haryana (RGUDMH) in annual budget For urban and rural development in , the state government allotted economic stimulus packages of US$ million and US$ million respectively. Over , the Haryana Infrastructure Development Board plans to implement projects worth more than US$ million. During , the government plans to construct 0.15 million affordable housing units for the weaker sections of society residing in urban areas. The state government has provided an impetus and would continue to strengthen the financial status of urban local bodies and provide adequate funds for improving civic amenities in urban areas. There are 77 urban local bodies in the state, consisting of nine municipal corporations, 19 municipal councils and 50 municipal committees. Source: JNNURM, Ministry of Urban Development, Directorate of Urban Local Bodies-Haryana, TechSci Research Note: *Assumed exchange rate of US$ 1= INR

27 DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS (1/2) Sector Project cost (US$ million) Stage Social & commercial infrastructure Under construction Transport Under construction Roads Under construction Social & commercial infrastructure 2, Under construction Energy Under construction Nanocity, Panipat Social & commercial infrastructure Under construction Petrochemical Hub, Panipat Social & commercial infrastructure Under construction Transport Under construction Social & commercial infrastructure Under construction Name of project European Technology Park, Faridabad Intra-City Bus Service Construction of Kundli-Manesar-Palwal Expressway Model Economic Township Jhajjar Power Transmission Project Development of metro link from Delhi Metro Sikanderpur to NH-8 Gurgaon Reliance SEZ Limited Source: Department of Economic Affairs, Government of India; TechSci Research 27

28 DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS (2/2) Sector Project cost (US$ million) Stage Rohtak-Hisar NH10 Road Project Transport Under construction Road Upgradation (Delhi-Haryana border to Rohtak) Project Transport Under construction Unitech SEZ at Kundli, Sonipat Social & commercial infrastructure 3, Under construction Haryana State Wide Area Network Social & commercial infrastructure Under construction Panipat Elevated Highway Road Transport Under construction Reliance SEZ Limited, Gurgaon Social & commercial infrastructure 2, Under construction Transport Under construction Name of project Road Upgradation (Punjab/ Haryana Border- Jind) Project Source: Department of Economic Affairs, Government of India; TechSci Research 28

29 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (1/5) As of March 2015, the state had six operational SEZs. S No 25 proposals have been granted in-principle/formal approval in the state by the Government of India. As of July 2015, the state had 22 formal approvals, three inprinciple approvals and 19 notified SEZs. The state granted industrial colony licences to SEZs. Under the policy, 15 per cent of land can be developed as residential area, 45 per cent for industrial units and 5 per cent for commercial use. The remaining 35 per cent will be left for roads, infrastructure services and public utilities, apart from open spaces. Some of the promoters of SEZs: Planned or under construction 1 Perpetual Infracon Pvt Ltd at Faridabad 2 Pioneer Urban Land and Infrastructure Limited 3 G.P. Realtors Private Limited 4 Ansal Colours Engineering SEZ at District Sonipat 5 DS Realtors Private Limited 6 Natasha Housing & Urban Development Ltd at Panipat 7 Orient Craft Infrastructure Limited 8 DLF Ltd. Source: Ministry of Commerce & Industry, Government of India 29

30 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (2/5) The state government has approved, in principle, the setting up of an SEZ near Garhi Harsaru in Gurgaon district. The Garhi Harsaru SEZ would be utilised only for industrial purposes and cost US$ million. The SEZ aims to promote FDI and resultant exports. The focus is on providing a hassle-free environment for export-oriented production. The proposed SEZ would be a duty-free enclave and a deemed foreign territory, where no licence would be required for imports. The import of capital goods, raw materials and consumables as well as their procurement from the domestic market to the SEZ would be exempted from customs duty and central excise duty. The supplies from domestic tariff area (DTA) to SEZ units would be treated as deemed exports. Through the automatic route, 100 per cent FDI in the manufacturing sector would be allowed for projects set up in the SEZ. The SEZ units would be provided in-house customs clearance, and no separate documentation would be required for customs and Exim Policy. Source: Government of Haryana 30

31 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (3/5) Index Operational SEZ Notified SEZ IT/ITeS Anant Raj Industries Ltd. Punjab IT/ITeS Mittal Infratech Private Ltd. IT/ITeS Anant Raj Industries Ltd IT/ITeS DLF Cyber City DLF Ltd Gurgaon Infospace Ltd Unitech Reality Projects Ltd. ASF Insignia SEZ Pvt. Ltd. IT/ITeS Selecto Systems Pvt Ltd Perpetual Infracon Pvt Ltd Source: Ministry of Commerce & Industry 31

32 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (4/5) SEZ (Notified) in Gurgaon Punjab IT/ITeS DLF Ltd. Dr Fresh Health Pvt Ltd DLF Cyber City Developers Ltd Gurgaon Infospace Ltd. Mayar Infrastructure Development Private Limited Metro Valley Business Park Pvt Ltd Goldsouk International Gems & Jewellery SEZ Pvt. Ltd. ASF Insignia SEZ Private Limited Unitech Realty Projects Ltd Ascendant Estates Pvt Ltd Orient Craft Infrastructure Limited G P Realtors Pvt Ltd Handicrafts: Natasha Housing & Urban Development Limited Biotechnology: Mayar Infrastructure Development Ltd Agro and Food Processing: Ansal Colors Engineering SEZ Limited Source: Ministry of Commerce & Industry 32

33 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (5/5) Industry clusters in Haryana Index Textiles and handlooms Punjab Automotive Engineering IT and ITeS Petrochemicals Agro-based industry 33

34 SOCIAL INFRASTRUCTURE EDUCATION The state has a strong primary education infrastructure, with a primary school located within a 1.03-km radius of each village and a middle school within a 1.07-km radius. As of 2015, there was one higher secondary and one senior secondary school located within a 1.52-km and 2.28-km radius, respectively. In the state s budget for , allocation for technical education has been increased to US$ million from US$ million in An Indian Institute of Management (IIM) has been established in Rohtak district. In , the state government has established two universities, namely Chaudhary Ranbir Singh University at Jund and Chaudhary Bansi Lal University at Bhiwani. Furthermore, the government has changed the name of National Law University, Sonepat to Dr. B. R. Ambedkar National Law University, Sonepat. Literacy rate (%) Total 76.6 Male 84.1 Female 65.9 Source: Census, 2011 No of educational institutions (2015) Universities 27 Colleges 976 Medical Colleges Engineering colleges 7 2,393 MBA colleges 190 MCA colleges 51 Industrial Training Institutes (ITIs) 224 Primary schools 8,899 Middle schools 2,395 Higher & Senior Secondary schools 3,210 Source: Haryana at a Glance, Government of Haryana website, AICTE, National Health Portal, TechSci Research MBA: Master of Business Administration, MCA: Master of Computer Applications 34

35 SOCIAL INFRASTRUCTURE HEALTH As of August 2015, Haryana has 57 hospitals, 112 community health centres, 485 primary health centres, 2,630 sub-centres, 7 trauma canters, 37 urban and rural dispensaries, 90 Urban RCH centres, and 473 delivery huts. As of 2015, the state had 67 Employees State Insurance (ESI) dispensaries. In the Annual Plan, US$ million has been allocated for health services, including medical education & family welfare. The Outreach Outdoor Patient Department of AIIMS-II commenced operations in The institute has been proposed to be established as a National Cancer Institute. This project involves an estimated cost of US$ million. As of June 2015, environmental clearances are pending for the construction of the National Cancer Institute at the Jhajjar campus of AIIMS. In June 2015, AIIMS has given a proposition for setting up of National Cardiovascular Centre with an estimated cost of US$ million at Jhajjar in collaboration with the state government. Health indicators ( ) Birth rate* 21.3 Death rate* 6.3 Infant mortality rate** 41 Life expectancy at birth (years) Male ( )^ 68.9 Female ( )^ 71.3 Medical institutes in Haryana Post Graduate Institute of Medical Sciences and Research, Rohtak Medical College, Agroha Three new medical colleges have been established at Nalhar (Mewat), Khanpur Kalan (Sonipat) and Karnal AIIMS-II, Karnal Source: Economic Survey ; Sample Registration System (SRS) Bulletin September 2014, Report of the Technical Group on Population Projections May National Commission on Population, Census India, Assorted News Articles, TechSci Research, *Per thousand persons, **Per thousand live births, ^Projected 35

36 CULTURAL INFRASTRUCTURE Phag, Dhamal, Ratvai, Khoria, Ghoomar and Ganguar are some of the many dance forms of Haryana. Important festivals of the state are Lohri, Basant Panchami, Holi, Gangore, Baisakhi, Nirjala Akadashi, Gugga Naumi and Navratri. Fairs held in Haryana include Gopal-Mochan, Masani, Basdoda, Surajkund and the Kartik Cultural Festival. Some renowned museums in the state include Urusvati Museum of Folklore (Gurgaon), Sanskriti Museum (Gurgaon), Museum of Folk and Tribal Art (Gurgaon), Sri Krishna Museum (Kurukshetra) and City Museum (Chandigarh). Prominent stadiums in the state include Tejli Sports Complex (Yamunanagar), Nahar Singh Stadium (Faridabad), Tau Devi Lal Stadium (Panchkula) and Nehru Stadium (Gurgaon). Kingdom of Dreams, which is India s first live entertainment and leisure destination, is located in Gurgaon. The Epicentre in Gurgaon has been developed as an arts and culture centre. 36

37 INDUSTRIAL INFRASTRUCTURE Historically an agrarian state, Haryana today is a welldeveloped industrial state. HSIIDC is the state s premier industrial promotion agency. It is responsible for providing reliable and efficient facilities to entrepreneurs investing in the state. Industrial Model Townships (IMT) Developed and under development The state has taken several initiatives for developing industrial infrastructure to achieve consistent economic growth. HSIIDC has developed a number of industrial estates, industrial model townships and specialised parks for cluster development. IMT Rohtak IMT Faridabad IMT Kharkhoda IMT Mewat IMT Bawal IMT Manesar Source: HSIIDC Various industrial clusters that have come up across the state include footwear and accessories in Bahadurgarh, agricultural implements in Karnal, scientific instruments cluster in Ambala, handloom, hosiery and textile goods in Barhi, and fabrication & fitting cluster in Faridabad. An industrial model township is under-construction at Manesar, near Gurgaon. The region is being developed as an automotive and engineering hub. 37

38 SMART CITIES In May 2015, four cities of Haryana were proposed to be developed as a smart cities. In an effort to revolutionise the infrastructure of the state, the state government has decided to revamp the four cities, namely Ambala, Faridabad, Gurgaon and Panipat. Ambala Panipat Smart cities in Haryana Cities Population Area (sq km) Literacy rate Ambala 1,128,350 1, % Faridabad 1,809, % Gurgaon 1,514,432 1, % Panipat 1,205,437 1, % Gurgaon Faridabad Source: Census 2011 & TechSci Research 38

39 INDUSTRIAL INFRASTRUCTURE EXISTING INDUSTRIAL ESTATES (1/2) Estate/location IMT Manesar (Phase I is complete, Phases II, III, IV and V are undergoing development) IIDC, Saha (Status- Planned & Developed) Brief description Udyog Vihar, Gurgaon Kundli Phases I, II, IV, EPIP and Electronic Hardware Technology Park (Status Planned & Developed) Located at a distance of 50 km from Delhi on NH-8, and about 32 km from the IGI Airport. Focus on hi-tech and hi-precision non-polluting units such as automotive, readymade garments, ITeS and packaging. Located on NH-10, about 250 km from New Delhi. HSIIDC acquired around 76 acres of land for setting up IIDC in Saha. Located on NH-8, about 8 km from IGI. Focus on IT/ITeS, electronics, electrical goods, pharmaceuticals, light engineering, auto parts and components and readymade garment sectors. Maruti Udyog, a leading car manufacturer of India, has its base in Udyog Vihar. Located on NH-1 on the Delhi-Haryana border, about 20 km from Delhi. Has industrial units from general engineering, cycle parts, dairy products and agro-based sectors. Source: HSIIDC website 39

40 INDUSTRIAL INFRASTRUCTURE EXISTING INDUSTRIAL ESTATES (2/2) Estate/location Faridabad Murthal Brief description Ambala Tohana (StatusPlanned & Developed) Jind Samalkha (StatusPlanned & Developed) Rai (Status- Planned & Developed) Barwala (Phase-l Completed and Phase-ll underconstruction) Located about 35 km from New Delhi, on the Delhi-Mathura highway. Has industrial units for the light engineering sector. Located about 50 km from New Delhi, on NH-1. Has industrial units from general engineering, malt, chemicals and cycle parts sectors. Located about 200 km from New Delhi, on NH-1. Has industrial units from scientific instruments, electronic and light engineering sectors. It also has a United Nations Development Programme (UNDP) assisted instrument design and development centre. Located about 200 km from New Delhi. Has industrial units from agriculture implements, foundry and light engineering sectors. Located about 120 km from New Delhi. Has agro-based industries, leather based products and chemical industries Located about 70 km from New Delhi on NH-1 Has light engineering and foundry units. Located about 35 km from New Delhi on NH-1. A food park and a technology park have been developed here. Located at about 240 km from New Delhi, Panchkula-Saha State Highway, in District Panchkula Has industrial units of plywood, pharmaceuticals units and light engineering works. Other industrial estates under implementation are ancillary estates at Panchkula, Kalka, Murthal, integrated infrastructure development centre at Sirsa, built-up sheds near Sohna, and estates at Manakpur in Yamuna Nagar. Source: HSIIDC website 40

41 INDUSTRIAL INFRASTRUCTURE UPCOMING INDUSTRIAL ESTATES (1/3) Estate/location Barhi (Status- Planned & Developed) Bahadurgarh (Sector 18 & 18A) Growth Centre, Saha (Phase-l is completely planned and developed; Phase-ll is planned and underconstruction) Hosiery complex in Barhi (expansion in planning stage) Brief description Located about 57 km from Delhi on NH-1, near Gannaur in Sonepat District. List of key industrial units include Seasons Textiles, Wooltex Textiles, Kaico Deer, EOC Polymer, etc. Just next to New Delhi on NH-10 linking Delhi with Rohtak and Hissar in District Jhajjar. HSIIDC acquired around 138 acres of land for setting up an industrial estate in Bahadurgarh (Jhajjar district). Located about 180 km from Delhi on NH-73 and is about 15 km from Ambala Cantt Key companies include Mount Shivalik Breweries Ltd, Super Filtration System Ltd, Osaw Agro Industries Ltd, Kandhari Beverages (P) Ltd and Mahaunt Agro (P) Ltd A hosiery and textile park exists in Barhi near Ganaur, in Sonipat district, and an industrial complex is being planned as part of the expansion. Three more townships are being planned at Sampla, Badli-Jahangirpur and Ganaur-Samalkha. Source: HSIIDC website 41

42 INDUSTRIAL INFRASTRUCTURE UPCOMING INDUSTRIAL ESTATES (2/3) Kundli-Manesar-Palwal (KMP) expressway In addition to industrial infrastructure, the project aims to provide smooth and quick transportation of surplus food grains, milk products, fruits and vegetables from Haryana, Punjab, Himachal Pradesh and Kashmir to other parts of the country. Mega-projects of Haryana Kundli-Manesar-Palwal (KMP) Expressway on BuildOperate-Transfer (BOT) basis Delhi-Mumbai Industrial Corridor (DMIC) Project Manesar Bawal Investment Region (MBIR) Early Bird Projects (Global City Project, Integrated Multimodal Logistics Hub (IMLH), Mass Rapid Transit System Between Gurgaon-Manesar-Bawal (MRTS)) The government is developing sector specific theme parks and sub-cities along the KMP expressway. Source: HSIIDC website The 135-km KMP expressway will act as a Delhi bypass and provide seamless connectivity across NH-1, NH-2, NH-8 and NH-10. Total cost of the project is US$ million, 42

43 INDUSTRIAL INFRASTRUCTURE UPCOMING INDUSTRIAL ESTATES (3/3) The 1,500-km Delhi-Mumbai Industrial Corridor (DMIC) project worth US$ 90 billion will serve as a dedicated freight corridor between Delhi and Mumbai. The project plans to create self sustaining industrial townships within the corridor. These townships would be served by multi-modal connectivity for freight movement as well as reliable power and air connectivity. The project incorporates Nine Mega Industrial zones of about sq km area, high-speed freight line, three ports and six airports; a six-lane intersection-free expressway connecting the country s political and financial capitals and a 4,000-MW power plant. The corridor is expected to create 2.5 million new jobs. The DMIC covers nearly 14 districts of Haryana 66 per cent of the state s total area. International Cargo Airport at Bhaini Maharajpur & Bhaini Bhairon villages is a greenfield project located at the tri-junction of Rohtak, Hisar and Bhiwani districts. The proposed airport would be about 110 km from New Delhi s IGI Airport. 43

44 KEY INDUSTRIES (1/2) Haryana s natural resources, policy incentives and infrastructure support investments in sectors such as automobiles and auto components, IT/ITeS, textiles, agro-based industries, business tourism and commerce. Forming industrial clusters and developing infrastructure has been the state s key strategy to attract investments in various industries. The new Industrial and Investment Policy 2011 promotes manufacturing as a key driver of economic growth and invites private sector investment through the PPP mode. The Industrial and Investment Policy 2011 aims to strengthen SMEs and encourages quality competitiveness, investment in R&D and technology upgradation. Gurgaon, Faridabad, Sonipat, Panipat, Panchkula, Ambala and Yamuna Nagar are some of the key industrial districts in Haryana. HSIIDC is the state's premier industrial promotion and investment facilitation agency, responsible for providing reliable and efficient facilities to entrepreneurs investing in the state. 44

45 KEY INDUSTRIES (2/2) During , the state s economy witnessed a gradual shift in the sectoral composition of GSDP. Over the period, the contribution of both primary and secondary sectors declined, while that of the tertiary sector increased steadily. Sectoral composition of GSDP (%) 44% 46% 46% 47% 47% 49% 50% 51% 52% 53% 53% Key industries in Haryana Automotive Agro-based industry IT/ITeS Textiles Oil refining Bicycles Sanitary ware Scientific instruments Tourism Real estate & construction Biotechnology Petrochemicals 33% 32% 31% 30% 29% 30% 29% 28% 27% 27% 27% 23% 22% 23% 23% 24% 21% 21% 21% 20% 20% 20% Primary Secondary Services Source: Central Statistics Office 45

46 KEY INDUSTRIES AUTOMOTIVE INDUSTRY (1/3) Haryana is a preferred destination for auto majors and autocomponent manufacturers. The state is host to many large automotive players. The state produces two-thirds of passenger cars, 50 per cent of tractors, 60 per cent of motorcycles and 50 per cent of the refrigerators manufactured in the country. A significant percentage of the state s workforce is engaged in the automotive industry; Gurgaon and Faridabad are important automobile centres. The International Centre for Automotive Technology (ICAT) has been set up at Manesar as a part of the National Automotive Testing and Research and Development (R&D) Infrastructure Project (NATRiP). It provides testing and R&D services to the industry. In April 2015, Terra Motors announced to set up a manufacturing plant in Gurgaon for manufacturing wo-wheelers and threewheelers with an investments of around US$ 6 million. The manufacturing facility will have an annual production capacity of 30,000 units. The state government has proposed a sliding railway and logistics centre in IMT Manesar for smoother transportation and more effective inventory management. In November 2013, JBM Auto formed a joint venture (JV) with Italian bus maker Breda Menarinibus for manufacture of luxury buses in India. With an investment of US$ 84.3 million, the JV would set up a plant at Kosi, near Faridabad, to manufacture 2,000 buses every year. In September 2014, FIPB proposals regarding Baxter India (Gurgaon) have been cleared. With an eye on rural and semi-urban buyers, Honda has tied up with Gramin Bank for retail financing. The bank finances the vehicles at 0.9% lesser interest for a tenure of 60 months Some of the key players Maruti Suzuki India Ltd Yamaha Motor Pvt Ltd Escorts Group General Motors India Pvt Ltd Source: Industrial and Investment Policy 2011, News articles 46

47 KEY INDUSTRIES AUTOMOTIVE INDUSTRY (2/3) Production data of automobiles, motorcycles/scooters/mopeds and tractors in Haryana (in 000 units) Motorcycles/ Scooters/ Mopeds Automobliles Tractors Source: Statistical Abstract Haryana,

48 KEY INDUSTRIES AUTOMOTIVE INDUSTRY (3/3) Maruti Suzuki India had a market share of around 40 cent in the Indian passenger car market at the end of March Its Gurgaon facility has three integrated plants, with an installed capacity of around 900,000 units; the fourth plant is located at Manesar. In , US$ 354 million was invested in the Manesar plant. The Gurgaon plant would eventually serve as a base for engine assembly and machining, while automobile assembly is done at the Manesar plant. The company garnered revenues of US$ 8.06 billion in General Motors India Pvt Ltd General Motors India Pvt Ltd, founded in 1996, is a wholly owned subsidiary of General Motors and is engaged in the automobile business in India. Its subsidiary Chevrolet Sales India Pvt Ltd is headquartered in Gurgaon. As of December 2014, the company employs around 216,000 persons in 158 facilities globally. Escorts Group Escorts is a leading engineering conglomerate in the high growth sectors of agri-machinery, construction and material handling equipment, railway equipment and auto components. Its corporate headquarters and manufacturing facilities for tractor assembly, transmission and engines, crankshaft and hydraulics is located in Faridabad. The company posted revenues of US$ million in Yamaha Motor Pvt Ltd Yamaha Motors is a 100 per cent subsidiary of Yamaha Motor Company Ltd, Japan. The company has more than 2,000 employees in India, and a countrywide network of over 400 dealers. It has a manufacturing plant in Faridabad, which supplies bikes to the domestic as well as overseas market. Maruti Suzuki India Ltd 48

49 KEY INDUSTRIES IT/ITES INDUSTRY (1/2) Gurgaon has emerged as a preferred destination for the IT industry in North India, with more than 400 IT and ITeS companies. Some of the key players The government has granted licenses to 50 proposals for establishment of IT/cyber projects as of August Haryana is among the leading states in terms of IT exports. As of September 2014, Gurgaon accounted for around 7% share in software exports from the country. The state government has extended various incentives to companies within the sector, including relaxation in floor area ratio, rebate on registration, transfer of property charges and exemption under the Haryana Shop & Commercial Act. IBM Global Process Services Tata Consultancy Services (TCS) Microsoft Corporation (I) Pvt Ltd Google STPI: Software Technology Parks of India, Department of Town & Country Planning, Haryana Haryana is the first state to have implemented its State Wide Area Network (SWAN) for voice, data and video transmission. The SWAN vertical connectivity at the State Network Management Centre (SNMC), District Network Management Centre (DNMC) and Block Network Management Centre (BNMC) is completed and now operational. 49

50 KEY INDUSTRIES IT/ITES INDUSTRY (2/2) IBM Global Process Services Tata Consultancy Services (TCS) Microsoft Corporation (I) Pvt Ltd IBM Global Process Services (formerly IBM Daksh) is a leading provider of business process solutions, with its corporate office in Gurgaon. The company has 23 service delivery centres at nine locations in India and Philippines and employs more than 100,000 persons, making it one of the largest Business Process Outsourcing (BPO) vendors in India in terms of headcount. Haryana was awarded the software centre of excellence by IBM. TCS is among the largest providers of IT and BPO services in India. The company s clients are in BFSI, healthcare & life sciences, insurance, manufacturing, media, entertainment, transportation, travel & hospitality, retail, utilities and energy resources sectors. It commenced operations in Gurgaon in The company posted revenues of US$ 15.7 billion in Microsoft entered India in 1990 and works closely with the Indian government, IT industry, academia and the local developer community. Microsoft has offices in 10 cities: Ahmedabad, Bengaluru, Gurgaon, Chennai, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi and Pune. In India, Microsoft employs about 5,800 people and has six business units representing the complete Microsoft product lifecycle. The company has two offices in Haryana, both at Gurgaon. Google Google, a web based search engine, is the flagship product owned by Google, Inc. It offers special features such as synonyms, weather forecasts, time zones, stock quotes, maps, earthquake data, movie-show times, airports, home listings and sports scores. Google has a sales office in Gurgaon. It is a direct sales organisation and helps the world's biggest advertisers to enjoy immediate and accountable communication with the consumer. The sales teams here are structured according to industry verticals. 50

51 KEY INDUSTRIES AGRO-BASED INDUSTRY (1/2) Agriculture is one of the biggest employment generators in rural Haryana, with strong potential in value addition and exports. Haryana is self-sufficient in food production and the second-largest contributor of food grains to the central pool. Haryana is a pioneer in adoption of sprinkler technology for irrigation purposes. In , around 8,245 new sprinklers were installed to boost agricultural productivity, thus increasing the total installed sprinklers to 147,976. The Department of Horticulture encourages a cluster approach for the development of fruit cultivation. A horticulture terminal market, being developed at Ganaur, would act as an export hub for fruits, flowers and vegetables from all over the country. In , Haryana State Flood Control Board sanctioned US$ 59 million for 226 new schemes and US$ 40 million for 84 ongoing schemes for flood control and improving the drainage works. Dairy farming has huge potential in rural areas and is being promoted as a self-employment venture. The per capita milk availability in Haryana is the second highest in the country. Haryana aggressively promotes organic farming; financial assistance is provided to farmers for production and use of vermicompost. The state government approved US$ million for minor irrigation systems for Furthermore, under National Mission on Micro Irrigation scheme, the state government has set a target to cover over 9,588 hectares of area for horticulture crops. The fruits and vegetables production of the state stood at 360,730 tonnes and 3,202,904 tonnes as of December, Haryana is the largest producer of button mushrooms in India. The total production was estimated at around 5,015 tonnes as of December Some of the key players Nestle India Ltd GlaxoSmithKline Consumer Healthcare Ltd (GSK) Haldiram s Foods International Ltd PepsiCo India Source: Economic Survey of Haryana,

52 KEY INDUSTRIES AGRO-BASED INDUSTRY (2/2) Nestle India is a subsidiary of Nestle SA, Switzerland. Its Indian headquarter is in Gurgaon, Haryana. Its famous brands in India include Nescafé, Maggi, Milkybar, Milo, Kit Kat, Bar-One, Milkmaid, Nestea, Nestle Milk, Nestle Fresh 'n' Natural Dahi and Nestle Jeera Raita. The company has a factory at Samalkha, Panipat, which was commissioned in 1993, to manufacture milk products. GlaxoSmithKline Consumer Healthcare Ltd (GSKCH) is an Indian group company/associate of GlaxoSmithKline UK and one of the largest players in the health food & drink industry in India. GSK has a factory at village Khewra, Sonipat, with a capacity of 26,100 tonnes per annum for its brand Horlicks. Haldiram s Foods International Ltd Haldiram's started in Bikaner and is one of India's largest sweets and snacks manufacturers. The company sells packaged food and snacks, which are not only consumed in domestic markets but also exported to various countries viz., Pakistan, Canada, Australia, Sri Lanka, Singapore, Malaysia, South Africa, Indonesia, Qatar, Hong Kong, Japan, Kenya, Libya and South Korea. Haldiram s also has its own outlets where it sells sweets and eatables. In Haryana, Haldiram Manufacturing Co Pvt Ltd is located in village Kherki Daula on the Delhi-Jaipur highway. PepsiCo India PepsiCo established its business operations in India in The company has a diverse range of products including carbonated drinks and potato chips. It employs 6,400 people and provides indirect employment to almost 200,000 people. It has 38 beverage bottling plants and three food plants in the country. Its corporate office is in Gurgaon. Nestle India Ltd GlaxoSmithKline Consumer Healthcare Ltd (GSK) 52

53 KEY INDUSTRIES TEXTILES (1/3) Abundant availability of raw materials gives Haryana a competitive advantage in the textile sector cotton production in * was around 1.9 million bales (bales of 170 kg each). Cotton productivity in * was around kg per hectare. In , there were 33 cotton markets in Haryana. Readymade garments worth around US$ 1.3 billion are exported from Haryana annually, providing employment to around one million workers. In August 2014, Haryana s government provided tax relief under Haryana Value Added Tax Act, 2003, to textile and textile products such as sarees, shawls and unstitched ladies suits, bed sheets with pillow covers of up to US$ 8.2 and textile mats of value not exceeding US$ 0.08 per piece. All other types of textile products manufactured were included under a lower tax rate (5 per cent tax plus surcharge). A cluster of high-fashion readymade garment units has come up in the well-developed industrial area of Udyog Vihar, Gurgaon. Panipat, known as the city of weavers, has established itself as a centre for handloom products on the global map. The handloom business is expected to receive a further boost with the establishment of the proposed International Trade and Convention Centre in Panipat. It will function as a design centre for the handloom products. The state government, along with HSIIDC, has set up a textile park in Barhi (Sonipat). The park is expected to generate US$ 138 million of annual garments business and create 7,500 jobs. In order to boost handloom exports, the state government has established a state-of-the-art facility in Panipat with an investment of US$ 6 million. NIFT is being established in Sector-23, Panchkula, in collaboration with National Institute of Fashion Technology and Ministry of Textiles as per the latest Economic Survey. Some of the key players DCM Textiles Benetton India Pvt Ltd Orient Craft Ltd Pearl Global Ltd Source: Economic Survey of Haryana , TechSci Research 53

54 KEY INDUSTRIES TEXTILES (2/3) Area and production of cotton in Haryana Production data of cotton yarn, blended yarn, 100% noncotton yarn Cotton Yarn Blended Yarn % Non-Cotton Yarn Area ('000 Hectares) Production ('000 Bales) Source: Economic Survey-Haryana, , TechSci Research 54

55 KEY INDUSTRIES TEXTILES (3/3) DCM Textiles The company manufactures 100 per cent grey cotton yarn and melange yarn. It has a spinning mill located in Hisar, with an installed capacity of 74,436 spindles. The company exports to 25 countries, including Spain, Portugal, Egypt, South Korea, Brazil, Hong Kong, Italy and Israel. Benetton India Pvt Ltd Benetton India is a wholly owned subsidiary of the Benetton Group, Italy. United Colors of Benetton is among the market leaders in branded apparel, with around 480 stores across 100 cities. The company has a manufacturing unit in Gurgaon. Orient Craft Ltd Orient is located in Gurgaon and employs around 5,000 people. It has established itself as a premium exporter of textiles from Haryana people. The company has the combined capacity to produce nearly 200,000 pieces per day at 21 units across the country. Pearl Global Ltd Pearl Global Ltd is a subsidiary of House of Pearl Fashions Ltd Group, which is among the pioneers of the ready-to-wear apparel industry in India. The company has six fully integrated manufacturing plants in Gurgaon, with a capacity for producing value added woven and knitted garments. The total factory area in north India covers more than 310,000 sq ft. The installed capacity on a single shift basis stands at 10 million pieces per annum. The units specialise in casual-wear dresses, ladies blouses in both woven and knits. Important customers of the company include Gap, Inc, JC Penney, Kohls, Next, H&M and Esprit. Revenue for the year ended March 2015 was US$ million. 55

56 KEY INDUSTRIES PETROCHEMICALS (1/2) The petrochemicals hub at Panipat is a 5,000 acre project, jointly set up by HSIIDC and IOCL. Development of this hub catalyses the growth of the petrochemicals industry in north India. Key player Indian Oil Corporation Ltd (IOCL) The new complex is a dedicated industrial zone for downstream industries and would attract an investment of around US$ 5.21 billion. The state government, in collaboration with the central government, aims to set up the CIPET in Murthal (district Sonipat) to undertake R&D and create skilled manpower for the development of the petrochemicals industry. Indian Oil Corporation Ltd (IOCL) IOCL manufactures petroleum products, crude oil, lubricants, grease, oil base, additives etc. IOCL has a refinery at Panipat, the company s seventh. The refinery was set up in 1998 at a cost of US$ 848 million, with a capacity of 6 million metric tonnes per annum (MMTPA). The Panipat refinery has increased its refining capacity from 6 MMTA to 15 MMTA with the commissioning of its expansion project. Kandla-Bhatinda product pipeline was converted to crude oil service and renamed as MundraPanipat pipeline in The Mundra-Panipat pipeline augmentation was commissioned in 2009 at a cost of US$ million. In March 2010, a naphtha cracker complex was set up adjacent to the Panipat refinery at an investment of US$ 3.04 billion. The company registered revenues of US$ 73,701 million in

57 KEY INDUSTRIES REAL ESTATE AND CONSTRUCTION (1/3) The real estate and construction industry has grown rapidly in Haryana. The growth in real estate in Haryana encompasses activities in the residential, commercial and hospitality space. Real Estate Development Council (REDCO) is the apex body for all stakeholders in the housing and construction industry; it was launched jointly by the Government of Haryana and the Ministry for Urban Development, Government of India. Gurgaon accounts for more than 70 per cent of the new commercial space coming up in the NCR. Gurgaon is registering the fastest growth in the real estate sector in India. Owing to Gurgaon s reputation as an IT hub and proximity to the national capital Delhi, demand for both housing and commercial space is rising. A drop in home loan rates and domestic inflationary numbers is expected to continue driving the real estate market. To accommodate further growth, the state has finalised the new Gurgaon-Manesar Master Plan The plan allocates land for developing residential and growth corridors. Adani realty team has tied up with US-based Brahma Management for a 150 acre township in Gurgaon. In March 2015, Bharti Realty, a group company of Sunil Mittal-promoted Bharti Enterprises, signed an agreement with a Delhibased builder to develop high-end smart homes in the Surajkund area of Faridabad. This project will involve an estimated cost of US$ million. 57

58 KEY INDUSTRIES REAL ESTATE AND CONSTRUCTION (2/3) New Gurgaon is one of the top realty destinations, with its world-class infrastructure, amenities and connectivity with neighbouring states. Gurgaon-Sohna road is another big site for commercial as well as residential development. The stretch promises runaway growth in the real estate sector and is drawing investors looking for capital appreciation opportunities. Some of the key players DLF Ltd Unitech Group Ansal Housing & Construction Ltd Emaar MGF Land Ltd In June 2015, the central government launched the Atal Mission for Rejuvenation and Urban Transformation (AMRUT). Under this, 19 cities have been selected in the state, namely Ambala Urban Agglomeration, Hisar, Bahadurgarh, Ambala Municipal Corporation, Bhiwani, Gurgaon, Faridabad, Jind, Kaithal, Karnal, Palwal, Panipat, Panchkula, Rewari, Rohtak, Thanesar, Yamunanagar and Sonepat. IL&FS Engineering and Construction received a US$ million housing project from Emaar MGF Land Limited. Under the project, IL&FS will build 150 residential villas titled Marbella at Sector 65 & 66 in Gurgaon. This project is estimated to be completed by March

59 KEY INDUSTRIES REAL ESTATE AND CONSTRUCTION (3/3) DLF Ltd DLF Group is one of the largest real estate players in India. Its primary business is development of residential, commercial and retail properties. DLF has been in the industry for over 60 years, having developed homes, offices, malls, SEZs, hotels and infrastructure projects. In , the company garnered US$ 1.27 billion in revenues. In August 2009, the foundation stone was laid for the first private metro rail project in the country. It is to be developed in Gurgaon by the DLF-IL&FS consortium. The 6.1-km rapid metro rail project has commenced trial runs and would be commercially operational in a few months. In November 2013, Phase-I got operational and Phase-ll is expected to get operational by the end of Unitech Group Ansal Housing & Construction Ltd Emaar MGF Land Ltd Unitech is among the largest real estate players, which have executed projects in Gurgaon with world-class service facilities. Its projects include Nirvana Country, Unitech World, Unitech Trade Centre, Unitech Business Park, Millennium Plaza (jointly developed with Vipul), Signature Towers and Global Business Park (jointly developed with Vipul). In , the company registered revenues of US$ million. Ansal Group expanded its activities from real estate development to high-value construction. In , the company posted revenues of US$ million. It is present in Gurgaon through several projects in both residential and commercial spaces. The group presently employs over 5,000 persons. Emaar MGF is a joint venture between Emaar Properties PJSC Dubai, a leading global real estate company, and MGF Development Ltd, one of the leading real estate developers. The company has several housing and commercial projects in the state. 59

60 KEY INDUSTRIES BIOTECHNOLOGY (1/2) The Government of India has selected Haryana for the establishment of a biotechnology park along with R&D facilities, besides promoting the establishment of a pharma industrial park. The state government has acquired 1,000 acres of land for a dedicated pharma park in the KMP (Kundli-ManesarPalwal) express global economic corridor. Key players Proagro Seeds Company Pvt Ltd Eli Lilly Company (India) Pvt Ltd Sun Pharma Venus Remedies Ltd Establishment of research centres and laboratories in collaboration with the private sector is being encouraged. The state government has established a Regional Centre for Biotechnology (RCB), Gurgaon under the guidance of UNESCO as a Category II Centre. This centre was established for education, training, and research in biotechnology and undertakes contemporary research at the interface of various disciplines. The centre has started functioning in its permanent campus in Faridabad, Haryana in January

61 KEY INDUSTRIES BIOTECHNOLOGY (2/2) Proagro Seeds Company Pvt Ltd Eli Lilly and Company (I) Pvt Ltd Proagro Seeds Company Pvt Ltd, a leading seed company in India, is a Bayer CropScience Group company. It is engaged in breeding, development, production and marketing of high quality hybrid field seeds. The company has a biotech laboratory in Gurgaon where genetic markers, DNA finger printing and other testing techniques are used to support the company s plant breeding efforts. Eli Lilly and Company (India) Pvt Ltd is a subsidiary of the US pharmaceutical major Eli Lilly and Co. Its primary focus is on diabetes, oncology, acute coronary syndrome, critical care, osteoporosis and growth hormones, and employs more than 550 people across India. In India, Eli Lilly operates in Gurgaon and conducts clinical trials of biotech drugs with its overall range. Sun Pharmaceutical Industries Ltd Venus Remedies Ltd Sun Pharmaceutical Industries Ltd, one of India's largest pharmaceutical companies, is an integrated, research-based pharmaceutical company with a global presence. In , the total revenue of the company was around US$ 4.55 billion. The company announced the acquisition of Ranbaxy Laboratories Limited in April 2014, and completed the acquisition deal in March The company manufactures a wide range of generic medicines in its 45 manufacturing sites across the globe. Sun Pharma Industries Ltd has two manufacturing facilities in Madhya Pradesh at Dewas and Malanpur. Venus Remedies Ltd is among the 10 leading fixed-dosage injectable manufacturers worldwide. The company has presence in 60 countries and covers more than 75 products. The company registered revenues of US$ million in The company s' first manufacturing unit commenced operations in 1991 in Panchkula, Haryana. It manufactures products in the categories of antibiotics, Total Parenteral Nutrition (TPN), neuro and other super-specialty therapeutic segments at its Panchkula unit. 61

62 SINGLE-WINDOW CLEARANCE MECHANISM Single-window clearance mechanism was established under the Haryana Industrial Promotion Act, It has a three-tier structure to grant exemption/relaxation from any of the provisions/rules of the Act. The Investment Promotion Centres (IPC) located in New Delhi and Chandigarh and District Industries Centres (DIC) at the district level serve as nodal agencies and provide support to the committees. Investment handled Under the Chairmanship of Greater than US$ 6.5 million HighPowered Clearance Committee Principal Secretary to Chief Minister US$ 1.09 to US$ 6.5 million State-Level Clearance Committee Principal Secretary Industries Less than US$ 1.09 million District-Level Clearance Committee Nodal agencies Investment Promotion Centre (IPC) State Level District Industries Centre (DIC) District Level Deputy Commissioner 62

63 KEY INVESTMENT PROMOTION OFFICES Agency Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC) Haryana Agro Industries Corporation Ltd (HAIC) Haryana State Electronics Development Corporation Ltd (HARTRON) Haryana Urban Development Authority (HUDA) Haryana Finance Corporation (HFC) Description Focusses on the development of medium- and large-scale industries. Provides financial assistance by way of term loans, equipment re-finance, equipment leasing and working capital. Engaged in trading activities such as sale of seeds, fertilisers, pesticides, tractors and other agricultural machinery at economical prices to the farming community. Nodal agency of the Haryana government for promoting electronics and IT industries. It offers expertise in infrastructure development as well as promotion of projects. Responsible for promoting and securing development of urban areas; activities include land acquisition, development and sale of property for residential, industrial and commercial purposes. Meets the credit needs of small- and medium-scale industrial units by advancing term loans. 63

64 CONTACT LIST Agency Contact information Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC) Plot No C-13-14, Sector 6, Panchkula Phone: Fax: Website: Haryana Urban Development Authority (HUDA) C-3, Sector-6, Panchkula Phone: Website: Haryana Finance Corporation (HFC) Bays , Sector 17-A, Chandigarh Phone: Fax: Website: Haryana State Electronics Development Corporation Ltd (HARTRON) SCO , Sector 17-B, Chandigarh Website: 64

65 KEY APPROVALS REQUIRED Approvals and clearances required Department Estimated time Department of Environment/Haryana Pollution Control Board Site and/or environment clearance: 60 days No-objection certificate to establish: 7 days No-objection certificate to operate: 30 days Renewal of consent: 21 days Approval, No-objection Certificate and change of industrial land Department of Town and Country Planning Change of land use in industrial zone: 30 days No objection certificate for establishment of industrial unit under the Urban Area Act: 15 days Approval of building plan: 30 days Approval and licence Labour Department/ Chief Inspector of Factories Approval of factory plan under the Factories Act, 1948 (Act 63 of 1948): 90 days Licence for running factory: 15 days Release of power connection Uttar Haryana Bijli Vitran Nigam/Dakshin Haryana Bijli Vitran Nigam Load up to 20 KW: 21 days Load up to 70 KW: 45 days Load above 250 KW: 60 days Load above 1 MW: 60 days Excise and Taxation Sales tax registration: 15 days Site clearances and No-objection Certificate Sales tax 65

66 COST OF DOING BUSINESS IN Cost parameter Cost estimate Source US$ 400 to US$ 700 at IMT, Manesar US$ 500 to US$ 1,650 in Gurgaon Industry sources Office space rent (per sq ft) Gurgaon: US$ 1.4 to US$ 3.1 per month Industry sources Residential rent (2,000 sq ft) Gurgaon: US$ 480 to US$ 1,625 per month Industry sources Five-star hotel room rent US$ 140 to US$ 240 per room per night Leading hotels in the state Power (per kwh) Industrial: US 9.1 cents to US 11.1 cents Haryana Electricity Regulatory Commission US 7 cents Water Supply and Sanitation Department Unskilled: US$ 3.4 Skilled A: US$ 3.7 Highly skilled: US$ 3.9 Ministry of Labour and Employment, Government of India Industrial land purchase (per sq m) Water (per 1,000 litres) Labour (minimum wage per day) 66

67 STATE ACTS & POLICIES (1/3) Industrial and Investment Policy 2011 Objectives To achieve higher, sustainable and inclusive economic growth by attracting investments in a focussed and structured manner in potential areas. Encourage private sector investment and promote the manufacturing sector Read more as a key economic driver. Haryana Special Economic Zone (Amendment) Act 2010 Objective To amend the Haryana Special Economic Zone Act, Read more Haryana Tourism Policy 2008 Objectives To increase the earnings from tourism inflow at the rate of 10.0 per cent annually. To promote sustainable tourism by encouraging a constructive and mutually beneficial partnership between the public and private sectors for economic development and employment generation. Read more 67

68 STATE ACTS & POLICIES (2/3) Haryana Special Economic Zone (SEZ) Act 2005 Objective To promote industrial townships with world-class infrastructure and create a conducive investment climate for export promotion. Read more Information Technology Policy (IT Policy) 2000 Objectives To upgrade the standard and quality of administration, particularly in social and public service sectors. To promote IT literacy and education in the state. To attract investments in the IT industry and encourage private sector Read more participation. Public Private Partnership Policy Objective To facilitate private sector participation in upgrading, developing and expanding the state s physical and social infrastructure. Read more 68

69 STATE ACTS & POLICIES (3/3) Labour Policy Objectives To implement labour laws for ensuring proper working conditions and labour standards. To improve working conditions for women and eliminate all forms of child labour. Read more To train and retain employees and officers. Land Pooling Scheme Objectives To acquire land for development of industrial infrastructure in a planned manner by the HSIIDC. To provide land owners with an option to become partners in the development process. Read more Rehabilitation and Resettlement Policy, 2010 Objectives To smoothen out the land acquisition process under the Land Pooling Scheme. To make fair payment of market value as compensation for land to land owners. Read more 69

70 ANNEXURE Average exchange rates Year INR equivalent of one US$ Q Source: Reserve Bank of India 70

71 CONFERENCES/SUMMITS FOR Venue of Summit Date Chandigarh 30th August 2015 International Conference on Emerging Trends in Engineering and Technology Chandigarh 6th September 2015 International Conference on Recent Advances in Engineering and Technology Chandigarh 13th September 2015 Chandigarh 20th September 2015 Chandigarh 8th October 2015 Summit International Conference on current advances in Electronics, Computer Science and Information Technology International Conference on Current Advances in Electronics, Computer Science and Information Technology 2nd International & 4th Indian Psychological Science Congress Source: India Conference Alerts 71

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