UTTARAKHAND THE SPIRITUAL SOVEREIGN OF INDIA

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1 JANUARY NOVEMBER

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

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

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

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

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

7 UTTARAKHAND IN FIGURES (1/2) Parameter Uttarakhand All states Source Economy GSDP as a percentage of all states GSDP GSDP growth rate (%) Per capita GSDP (US$) 2,233 1, Physical Infrastructure TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Uttarakhand TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Uttarakhand TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Uttarakhand Installed power capacity (MW) 3, , Central Electricity Authority, as of November 2015 Wireless subscribers (No) 1 53,831,133 1,003,487,792 Internet subscribers (No) 1 15,040, ,420,000 Telecom Regulatory Authority of India, as of October 2015 Telecom Regulatory Authority of India, as of June 2015 National highway length (km) ,214 NHAI, Roads and Building Department Airports (no) Airports Authority of India 1 Including Uttar Pradesh West 7

8 UTTARAKHAND IN FIGURES (2/2) Parameter Uttarakhand All states Source Social Indicators Literacy rate (%) Census 2011 Birth rate (per 1,000 population) SRS Bulletin Investment Cumulative FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, April 2000 to September 2015 Industrial Infrastructure PPP projects completed & operational (no) 2 1,382 DEA, Ministry of Finance, Government of India Operational SEZs (no) Ministry of Commerce & Industry, Department of Commerce PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System 1 Including Uttar Pradesh West 8

9 UTTARAKHAND THE SPIRITUAL SOVEREIGN OF INDIA ECONOMIC SNAPSHOT GSDP At current prices, the gross state domestic product (GSDP) of Uttarakhand was about US$ billion in GSDP of Uttarakhand at current prices (in US$ billion) Between and , the GSDP of the state grew at a CAGR of15.32 per cent CAGR 15.32% Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Uttarakhand 9

10 UTTARAKHAND THE SPIRITUAL SOVEREIGN OF INDIA ECONOMIC SNAPSHOT NSDP At current prices, the net state domestic product (NSDP) of Uttarakhand was about US$ billion in NSDP of Uttarakhand at current prices (in US$ billion) The NSDP of the state grew at a CAGR of per cent between and CAGR 14.96% Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Uttarakhand 10

11 UTTARAKHAND THE SPIRITUAL SOVEREIGN OF INDIA ECONOMIC SNAPSHOT PER CAPITA GSDP In , the state s per capita GSDP was estimated at around US$ 2, GSDP per capita of Uttarakhand at current prices (in US$) The per capita GSDP increased at a CAGR of per cent between and CAGR 13.78% 876 1,205 1,265 1,531 1,862 2,082 1,954 1,971 2,233 Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Uttarakhand 11

12 UTTARAKHAND THE SPIRITUAL SOVEREIGN OF INDIA ECONOMIC SNAPSHOT PER CAPITA NSDP In , the state s per capita NSDP was about US$ 1,944. NSDP per capita of Uttarakhand at current prices (in US$) The per capita NSDP increased at a CAGR of 13.4 per cent between and CAGR 13.4% 1,058 1,098 1,323 1,618 1,821 1,697 1,714 1,944 Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Uttarakhand 12

13 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP The tertiary sector s share in GSDP was per cent in Trade, hotels and restaurants are the largest subgroups of the sector, and registered strong growth compared with the previous year. The secondary sector had the fastest growth of 18.7 per cent followed by the tertiary sector (15.5 per cent) and primary sector (9.5 per cent) between to GSDP composition by sector CAGR % The share of the secondary sector in GSDP was per cent in ; its growth was mainly driven by the manufacturing sector % 9.46% Primary Secondary Tertiary Source: Central Statistics Office, TechSci Research Estimates 13

14 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION Sugarcane, wheat, rice and potato are the key agricultural products of the state. In , the total food grain production of the state was around 2.07 million tonnes. Sugarcane is the major crop in the state with production of about 6.1 million tonnes in The production of oilseeds and pulses during the year was estimated to be 36,000 tonnes and 62,000 tonnes, respectively. In November 2015, the state government of Uttarakhand signed a Memorandum of Understanding (MOU) with The Hans Foundation (THF) for the launch of initiatives and development projects in agriculture sector in addition to health, education, forest, water, sanitation and welfare of the handicapped. During , financial assistance of US$ 47,942.9 was provided to the rice mills operational in Uttarakhand. Crop Annual production in ( 000 tonnes) Annual production in ( 000 tonnes) Rice Wheat Onion Potato Tomato Sugarcane 5, ,135 Cotton yarn Source: Indian Horticulture Database, National Horticulture Board, Directorate of Economics & Statistics Department of Agriculture & Cooperation 14

15 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to the Department of Industrial Policy & Promotion (DIPP), the cumulative FDI inflows from April 2000 to September 2015 amounted to US$ 543 million 1. Exports from the state reached US$ 1.41 billion in , reflecting a growth of 8.1 per cent in comparison to Government initiatives for : Children disabled by birth will be given US$ 8.3 per month till they are 18 years of age. Government announced plans to facilitate Corpus Fund for villages having population more than 500 in hilly areas and 5,000 in plain areas. In budget, the state government announced to revamp Veer Chandra Singh Garhwali Yojana. Further 20 per cent reservation will be provided to women under the scheme FDI equity inflows, to (US$ million) Source: Department of Industrial Policy & Promotion 1 Including Uttar Pradesh, 2 From April-June % reservation for women in Home Guards and PRD will be made 15

16 ANNUAL BUDGET Uttarakhand s government has a planned expenditure of US$ 5,448.9 million for the year Sector Budget (US$ million) Sector Budget (US$ million) Transportation 7.25 Air transportation Power Irrigation Drinking water Road & bridge Tourism Science & Technology Rural development Youth development Industrial development Urban development Women & children welfare Agriculture Medical education Source: Department of Budget, Government of Uttarakhand *exchange rate of US$ 1 = INR

17 PHYSICAL INFRASTRUCTURE ROADS In 2015, the total length of national highways in Uttarakhand stood at 2, km. Over , the state government targeted completion of 41 km of national highways. During , the Government of Uttarakhand completed the construction of 1,953 km of roads and 67 bridges. Source: Maps of India PWD, BRTF, local bodies and the prominent authorities in the state for the maintenance of roads. Over the period of to , 141 proposals were sanctioned for widening, extension and repair of highways in Uttarakhand. During , the Government of Uttarakhand proposed to invest US$ million for the development of road infrastructure in the state. Vehicle category Number of vehicles- March 2015 Two wheelers 1,387,457 Cars/jeeps 311,908 Buses 10,227 Trucks 26,827 4 wheeler loader/delivery van 34,983 Taxi 34,449 Auto tempo 18,293 Tractor 65,953 Trailors 6,525 Others 4,340 Total 1,900,962 Source: Ministry of Road Transport & Highways, NHAI, State Transport Department 17

18 PHYSICAL INFRASTRUCTURE RAILWAYS As of , Uttarakhand had km of rail routes. The state is focusing on increasing the share of railways in cargo and passenger transport. Initiatives have been undertaken to start monorails at Dehradun, Haridwar and Rishikesh, on the inter-city linkage routes. The main railway stations in the state are Dehradun, Haridwar, Roorkee, Kotdwar, Kashipur, Udham Singh Nagar, Haldwani, Ramnagar and Kathgodam. In July 2014, the railway minister announced plans to start two new trains that will connect the state to Agra and Rameshwaram. Moreover, a proposal was put up for a rail connect to 'chaar dham. As of , the state government of Uttarakhand is planning to launch a rail project between Rishikesh and Karanprayag. The length of the railway track is estimated to be around km. Source: Maps of India 18

19 PHYSICAL INFRASTRUCTURE AIRPORTS The state has two domestic airports: one at Jolly Grant in the Dehradun district and another at Pant Nagar in the Udham Singh Nagar district. Due to the hilly terrain, the government has proposed the construction of at least one helipad per district. The state intends to position air transport as a reliable all-weather transport option for the hills. With Uttarakhand emerging as a hot tourist and industrial destination, the state government is focussing on upgrading the Jolly Grant airport as an international airport, in coordination with Airports Authority of India. During , the Dehradun airport handled 43 tonnes of freight. From April-September 2015, the volume freight handled at the airport stood at 60 tonnes. At the domestic airport located in Pantnagar, the aircraft movement and passenger traffic stood at 170 and 3,758 respectively, during April-September, Domestic airport Source: Maps of India Dehradun aircraft movement (nos.) Dehradun passenger traffic (nos.) 4,078 4,840 2, , , , (¹) (¹) Source: Airport Authority of India, (1) April 2015-September

20 PHYSICAL INFRASTRUCTURE POWER (1/2) As of November 2015, the state had total installed power generation capacity of 3, MW. Hydro (renewable) power contributed 2, MW to the total installed power generation capacity of the state, followed by thermal power with a contribution of MW and other sources of power generation. Of the total installed power generation capacity, state utilities accounted for the largest share of 1, MW, followed by 1, MW under private utilities and MW under central utilities. The state is in the process of implementing and testing the PPP model in the power sector. Installed power capacity (MW) 2,383 2,405 2,455 2,527 2,561 2,615 3,177 As of March 2015, the state had achieved 99.3 per cent of village electrification, covering 15,638 villages Uttarakhand Jal Vidyut Nigam Limited (UJVNL) controls the state s hydropower generation and the state s power sector is regulated by the Uttarakhand Electricity Regulatory Commission (UERC). As of March 2015, hydro plants with capacity of 1, MW are under running condition and plants with capacity of 175 MW are under construction. Dehradun Hydro Project with capacity of 120 MW is also in the construction phase. During , the Government of Uttarakhand proposed an investment of US$ million for the development of the energy sector in the state, of which US$ 0.99 million is proposed to be invested in alternative energy. Source: Central Electricity Authority, 1 Up to November 2015 Structure of power utilities of Uttarakhand Activity Power generation Power transmission Power distribution Company name Uttarakhand Jal Vidyut Nigam Limited (UJVNL) Power Transmission Corporation of Uttarakhand Limited (PTCUL) Uttarakhand Power Corporation Limited (UPCL) 20

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

22 PHYSICAL INFRASTRUCTURE TELECOM The state has a well-developed communication network including both wired and wireless connectivity. As per Telecom Regulatory Authority of India (TRAI), the state had 0.44 million 1 wire-line subscribers and million 1 wireless subscribers, as of October Uttarakhand State Wide Area Network (USWAN) is operational in the state. Some of the projects under Information Technology Development Agency (ITDA) Uttarakhand are National e-governance Plan (NeGP) Capacity Building Project, Common Service Centre (CSC) and State Data Centre (SDC). Telecom infrastructure (October 2015) Wireless subscribers 1 53,831,133 Wire line subscribers 1 440,631 Internet subscribers 1 15,040,000 2 Public Call Offices (PCOs) 5,280 Post offices 2 2,722 In November 2015, telecom operator BSNL announced to install 250 new mobile phone towers across the state in order to revamp the mobile connectivity. On October 31, 2015, the Uttarakhand Transport Corporation (UTC) in collaboration with Reliance Jio launched free internet Wi-Fi service at Haridwar bus terminal. The government plans to cover 9 more bus terminals. As on December 2015, the services at Haridwar bus terminal were free of cost, however once commercialised, the services would be chargeable after the first 15 minutes. Source: Telecom Regulatory Authority of India, 1 Including Uttar Pradesh West 2 As of June

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

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

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

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

27 SOCIAL INFRASTRUCTURE EDUCATION In January 2015, the Uttarakhand government granted formal recognition to 168 privately owned high school and intermediate colleges, effective immediately. Besides, the government also approved the setting up of three new medical colleges in Bhagwanpur, Rudrapur & Pithoragarh. In March 2015, Department of Education and Literacy in Uttarakhand proposed to cover 4.35 lakh children in 12,793 primary institutions and 2.94 lakh children across 5,358 upper primary institutions that would avail the mid day meal facility in Uttarakhand during In March 2015, Planning Accreditation Board approved allocation of US$ 0.39 million for providing vocational education in 36 schools under Rashtriya Madhyamik Shiksha Abhiyan (RMSA). As of September 2015, the student registration rate was per cent for primary education, per cent for higher primary education and per cent for secondary education. Literacy rates (%) ( ) Literacy rate Male literacy Female literacy In order to boost medical education in the state, the Government of Uttarakhand has proposed to invest US$ million. The government is planning to introduce new medical and A.N.M colleges in the state. For the growth of school education in the state, the Uttarakhand government has proposed an investment of US$ million during The state has 118 diploma colleges with student enrolment reaching 26,760 as of September Moreover, the government is planning to add more seats to these colleges for which an investment of US$ million has been proposed under state budget Source: Uttarakhand at a Glance, , Directorate of Economics and Statistics, Government of Uttarakhand, Census

28 SOCIAL INFRASTRUCTURE HEALTH Uttarakhand has a good network of hospitals and health centres. As of November 2015, the state had 287 primary health centers, 19 district hospitals, 27 sub district hospitals and 4 blood bank centers. Under Budget , the government proposed an outlay of US$ million for reproductive and child health under National Rural Health Mission in Uttarakhand, wherein, US$ 7.79 million is proposed for maternal health, US$ 0.72 million for child health, US$ 1.21 million for family planning, US$ 0.71 million for adolescent health under Rashtriya Kishore Swasthya Karyakaram Scheme, etc. In the state budget , an overall outlay of US$ million has been proposed for National Health Mission of the state of Uttarakhand. Hospitals in Uttarakhand as of November 2015 Hospitals Total facility Active facility Sub centres 1,889 1,866 Primary health centres Community health centres Sub district hospitals District hospitals Total 2,285 2,250 Health indicators (2013) Birth rate Death rate Infant mortality rate 2 32 Source: Directorate of Economics and Statistics, Government of Uttarakhand Sample Registration System 1 Per thousand persons, 2 Per thousand live births 28

29 CULTURAL INFRASTRUCTURE There are numerous avenues for recreation in the state, particularly in key cities such as Dehradun, Nainital and Mussoorie. There is a botanical museum in the Forest Research Institute at Dehradun. The Indian Military Academy has a museum, library, war memorial, arms and ammunition, shooting demonstration room, and an 18-hole golf course. There is another popular golf course in Ranikhet. There are several heritage hotels such as the Chevron Rosemount, Chevron Fairhavens and the Ramgarh Bungalows. There are numerous unique entertainment and adventure avenues including wildlife resorts such as Solluna resort in Nainital, Quality Inn Corbett Jungle Resort, and Tiger Camp: Camp Forktail Creek in Jim Corbett Park. Under Budget , Multipurpose Artisan Museum would be established in the memory of Munshi Hari Prasad Tamta at Almora. The Government of Uttarakhand announced plans to invest US$ 4.61 million for the growth of art and cultural department. For sports and youth development, the state government announced plans to invest US$ million during Major hotels in Uttarakhand Hotel Jaypee Residency Manor, Mussoorie Hotel Honeymoon Inn, Mussoorie Claridges Naini Retreat, Nainital Hotel Madhuban, Dehradun Youth hostels in Uttarakhand Hotel Yash, Pithoragarh Hotel Yash, Dharchula Hotel Sheela, Nainital Hotel Saina Inn, Dehradun O.G.S Tourist Home, Rishikesh Youth Hostel, Ranikhet Hotel Jim Corbett (youth hostel), Jim Corbett Administrative units Districts 13 Tehsils 98 Development blocks 95 Gram panchayats 7,555 Municipal corporation 06 Nagar palika parishads 31 Nagar panchayats 41 29

30 INDUSTRIAL INFRASTRUCTURE Floriculture Chaffi is a Joint Venture between the Dutch government and Uttarakhand government to manufacture and process the planting material of flowers such as chrysanthemum, tulips, zantedeschia, lilium and gladioli. The alliance aims to reduce the reliance on imports of flower bulbs and meet the demand of cut-flower growers and exporters in India. The production facility in Bhimtal, equipped with Dutch machinery and technology, has an annual production capacity of 20 million flower bulbs. Moreover, the company can produce 2 million plants annually in the tissue culture laboratory. In 2015, the Government of Uttarakhand announced an agreement to provide 70 acres of land in the State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIDCUL) in the Sitarganj phase-ii area for setting up a Coca Cola bottling plant. The project would bring in an investment of US$ 1.65 billion. Rural and small scale industries Khadi udhyog/gramodhyog 447 Small scale industries (SSI s) 25,294 Total employees of khadi units 3,853 Total employees of SSI s 63,599 Factories Number of factories 2,843 Number of workers 273,464 Source: State Infrastructure and Industrial Development Corporation of Uttarakhand Limited, News article In , the Government of Uttarakhand increased the loan amount under self employment scheme from US$ 3.31 thousand to US$ 8.29 thousand. 30

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

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

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

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

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

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

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

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

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

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

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

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

43 KEY INDUSTRIES ICT INDUSTRY (2/2) Hiltron HCL Infosystems Wipro Infotech Modi Infotech Services Hiltron initially worked to promote the development of electronics and allied industries and services in Dehradun, Uttarakhand. It functions as an IT and communication service provider to the state under the administrative control of the department of IT. HCL is among the largest vertically integrated IT manufacturing companies of India. The group reported consolidated income of US$ 1.02 billion from operations during (till June 2015) and US$ million during Q It is the largest hardware, system integration, networking solutions and distribution company in India. It has its manufacturing facility at Rudrapur in the SIDCUL Industrial Estate, which has an overall capacity of 2 million personal computers per annum. Wipro Infotech is a division of Wipro Limited. It provides enterprise customers with high-value IT products, software services, solutions and consulting services in India and the Middle East. Wipro reported revenues of US$ 7.53 billion in and US$ 3.78 billion during H It has a unit at Kotdwar in Uttarakhand. The unit is spread over 5.8 acres of land with a built-up area of 75,000 sq ft. It has fully-automated production lines designed on lean manufacturing practices and houses product engineering and R&D labs for continuous innovation in products and processes. Modi Infotech is located in Haridwar. It is involved in the business of website designing, software development, web-hosting, web-advertising, ERP solutions, e-commerce-based application development and educational segments of the IT market. 43

44 KEY INDUSTRIES AGRO AND FOOD PROCESSING (1/2) Many Agri-Export Zones (AEZs) have already been declared under the AEZ scheme of Government of India for products such as litchi, floriculture & horticulture, herbs, medicinal plants and basmati rice. A biotech park near Pant Nagar is coming up in the state. Uttarakhand has been included in the difficult area category by the Ministry of Food Processing Industry (MoFPI) and hence units being set up in Uttarakhand are also eligible for higher incentives under the scheme of MoFPI. Fruits such as apples, oranges, pear, grapes peach, plum apricot, litchi, mangoes and guava are widely grown in the state and therefore have immense potential for development of horticultural crops and processing units. The state government provides assistance in establishing small and medium agro parks and food parks, which in turn are expected to provide common infrastructure facilities for storage, processing, grading and marketing. In December 2014, the state government decided to offer a full subsidy of up to Rs 50,000 per hectare and other support to fruit cultivators to revive old orchards. The state government announced plans to establish a mega food park in Udham Singh Nagar which is expected to be operational by The state already has one food mega park based in Haridwar. These two mega food parks are anticipated to contribute US$ million to the GSDP of the state and expected to generate about 30,000 direct and 290,000 indirect employment opportunities in the state by As of 30 th May 2015, overall expenditure on Patanjali Food & Herbal Park Pvt. Ltd., and Himalayan Food Park Pvt. Ltd., Udham Singh Nagar stood at US$ million and US$ 3.27 million, respectively. Status of food processing units in Uttarakhand Total established units 28 Horticulture based units established under MM-IV of HMNEH 42 Food parks in Uttarakhand Name of the food park Area (acres) Plots (nos.) Patanjali Mega Food Park Pvt. Ltd Himalayan Mega Food Park Source: Uttarakhand State Portal, News Article 44

45 KEY INDUSTRIES AGRO AND FOOD PROCESSING (2/2) Britannia Industries Ltd Nestle India Ltd PepsiCo India KLA Foods (India) Ltd Britannia is one of India s leading food product companies, with an estimated 33.0 per cent biscuit market share. The principal activity of the company is the manufacturing and sale of biscuits, bread, cakes and dairy products like cheese, butter and milk. It has a plant in the integrated industrial estate at Pantnagar. The plant is located in Integrated Industrial Estate (IIE), Pantnagar, and the project cost incurred was US$ 12.5 million. The company recorded net sale of products as US$ 1.28 billion in and million in Q The company employs almost 1,987 people nationwide. Nestle is the world's largest and most diversified food company. It manufactures products under famous brand names such as Nescafe, Maggi, Milkybar, Kit-Kat and Bar-One. It has around 280,000 employees worldwide and 500 factories in about 77 countries. The company s total income from operations in India was recorded at US$ 1.63 billion in 2014 (December) and US$ million during Jan September In 2006, Nestle India commissioned its seventh factory at Pantnagar in Uttarakhand. PepsiCo established its business operations in India in 1989 and is one of the largest and fastest growing food and beverage businesses in India. The company s Indian operations reported revenues of US$ 66.6 billion in on a consolidated basis and US$ billion during Jan September It provides direct and indirect employment to over 285,000 people globally and has 38 beverage bottling plants and three food plants in India. There is a company-owned bottling plant in Bajpur, Uttarakhand, which has an installed capacity of 100,000 cases of soft drink per day. KLA Foods (India) Limited is involved in international trading in agricultural commodities. The company diversified into exports of minerals and metals and is exporting large quantities of ironore to China. Their rice processing unit, located at Rudrapur in Uttarakhand, was founded in

46 KEY INDUSTRIES FMCG INDUSTRY (1/2) Proximity to key markets and supply centres of North India further adds to the attractiveness of the state as an investment destination. Pantnagar is a primary location for FMCG companies in the state. In , the state had around 28 cold storage units with capacity of over 84,545 metric tonnes. Milk production in the state increased from 1, thousand metric tonnes in to 1, thousand tonnes in Egg production in the state increased from 3, lakh in to 3, lakh in Meat production in the state increased from thousand tonnes in to thousand tonnes in Food sector in Uttarakhand Segment Eggs (lakh nos.) 3, Meat ( 000 tonnes) Milk ( 000 tonnes) 1, Cold storage set up in Uttarakhand, to (nos) Some of the key players ITC Ltd: One of India s largest private sector companies has one of its factories in the personal care products division located in Ranipur, Haridwar. Dabur India Ltd: Leadership position in ayurvedic healthcare products like Chyawanprash, it has a factory located in Pant Nagar. CavinKare Private Ltd: Built with an investment of US$ 11.7 million in 2006, the capacity of the company s plant at Haridwar is 5,000 metric tonnes. The plant has an ISO 9001:2008 certification. Hindustan Unilever Ltd: India s largest FMCG company has its face/body wash preparations, cosmetics & toiletries being manufactured in Sidcul, Haridwar. Source: National Horticulture Board Source: Ministry of Food Processing Industries Source: Uttarakhand State Portal, News Article Ministry of Agriculture, Government of India 46

47 KEY INDUSTRIES FMCG INDUSTRY (2/2) ITC Ltd Dabur India Ltd CavinKare Pvt Ltd Hindustan Unilever Ltd ITC is one of India s foremost consumer goods companies, and is truly diversified with a product assortment ranging from cigarettes, apparel, and personal care and food products. The company is also one of the leading hoteliers in the country and is involved in agri-business. The company reported consolidated revenue of US$ 6.65 billion in and standalone revenue of US$ 2.79 billion during H It has established a manufacturing facility in Uttarakhand for producing soaps and shampoos. The plant, located at Integrated Industrial Estate (IIE) Haridwar, was set up with an investment of US$ 27.4 million. Dabur is one of the leading consumer goods manufacturing companies in India with a consolidated income of US$ 1.29 billion in and US$ million in H It has 17 ultra-modern manufacturing units spread across the globe and its products have markets in over 60 countries. It has established a manufacturing facility in Uttarakhand. The company manufactures products for healthcare, personal care and ayurvedic cosmetics segments. The plant located in IIE Pantnagar was set up with an investment of US$ 10.7 million. In November 2013, it acquired another company in Uttarakhand at a cost of US$ 2.5 million. CavinKare is a leading FMCG company in India. The company has an employee strength of around 3,000, an all-india network of 5,351 stockists catering to about 2.5 million outlets. CavinKare Group has a turnover of US$ million in It has established a manufacturing facility at the IIE Haridwar in Uttarakhand. It manufactures products such as cosmetics, shampoos, creams and deodorants. The plant was built with an investment of US$ 15.3 million. Hindustan Unilever Limited (HUL) is the largest FMCG company in India. It recorded consolidated revenue of US$ 5.62 billion from operations during and US$ 1.24 billion during Q It has a state-of-the-art personal care products factory, set up with an initial investment of US$ 28.5 million in SIDCUL IIE at Haridwar. 47

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

49 KEY INDUSTRIES ENGINEERING AND ALLIED INDUSTRIES (2/2) Tata Motors Ltd Bharat Heavy Electricals Ltd (BHEL) Surya Roshni Ltd Polar Industries Ltd Tata Motors is one of the leading firms in the country in the automobile and engineering sectors. Consolidated net revenue of the company stood at US$ 6.02 billion in and US$ 3.28 billion during April-September The company has set up its fourth plant in Uttarakhand. This plant in Pantnagar has been set up for manufacturing the firm s mini-truck named Ace. BHEL is one of the leading power generation equipment manufacturers in the world. The company reported revenue of US$ 5.01 billion in and US$ 1.70 billion during April- September It has installed equipment for over 100,000 MW of power generation for utilities, captive and industrial users. BHEL also offers comprehensive services to its customers in the conventional and non-conventional sectors including energy, industry, transport, defence and oil & gas. BHEL, Ranipur, is a township developed by the company in the Haridwar district of the state. BHEL, Haridwar, has a campus of 7,000 acres, of which, 2,034 acres is home to 200 companies including Hero Honda, Maruti and ITC. Surya is among India's leading manufacturers of lighting products. The company is a leader in the exports of fluorescent tubes and has achieved high brand visibility in over 40 countries. The company generated revenue of US$ million in and US$ million during April-September In 1984, Surya set up its first factory for lighting products at Kashipur in Nainital. Its steel pipe manufacturing plant is among the largest in Asia, located at Bahadurgarh, Haryana. Polar is a popular fan manufacturing company. It has established a manufacturing facility in Uttarakhand. The company manufactures electrical fans, water-lifting pumps, geysers, water purifiers and laminations. The plant, located in IIE Haridwar, was set up with an investment of US$ 4.7 million. 49

50 KEY INDUSTRIES FLORICULTURE AND HORTICULTURE (1/2) Uttarakhand has several agro-geo-climatic zones, making it particularly conducive to commercial horticulture and floriculture. The floriculture industry is being developed aggressively to meet the demands of domestic as well as foreign markets. The climate of the state makes it ideal for growing flowers all round the year. Floriculture parks with common infrastructure facilities for sorting, pre-cooling, cold chain, processing, grading, packing and marketing facilities have been planned to provide adequate incentives and facilities to the industry. The production of loose flowers in the state has increased from 2,020 tonnes in to 2,760 tonnes in Under Budget , the Government of Uttarakhand proposed an outlay of US$ 3.73 million for the mission entitled as Mission for Integrated Development of Horticulture (MIDH) for the state. Till date, 1.86 million of funds has ben released. Key player Uttarakhand Organic Commodity Board (UOCB) Policy / administrative measures in horticulture sector Uttarakhand University of Horticulture and Forestry was established in This University is continuously taking new initiatives in the fields of extension, research and certificate level courses for the benefit of staff as well as lay farmers. Single window system has been shaped in order to smoothen clearance of projects under schemes of Horticulture Mission for North East and Himalayan States, National Mission on Food Processing, National Horticulture Board and Agricultural and Processed Food Products Export Development Authority. A weather based crop insurance cover has been facilitated to the farmers producing apple, litchi, mango, tomato, potato and ginger. Total horticulture crop production (in 000 MT) In , exports of dairy products from the state stood at US$ 8.13 thousand, in value terms, whereas the exports value of poultry products stood at US$ 0.45 thousand. Onion exports from the state increased from US$ thousand in to US$ thousand in , , , Source: State Horticulture Mission 50

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

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

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

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

55 KEY INDUSTRIES TOURISM (1/2) Uttarakhand is a well-renowned religious and wildlife tourism destination. In , million domestic tourists and 1.02 million international tourists visited the state. About 21 new places in Uttarakhand that have the potential to become major tourist destinations. These places include Jageshwar, Baijnath, Saat Taal, Bhimtal, Patal Bhuvaneshwar, Chakori, Someshwar, Pithoragarh, Chakrata, Roopkund, Hanaul, Anson Barrage, Harshil, Dhanaulti and Dayara meadow. Jauljiwi in Kumaon and Tons in Garhwal division are planned to be developed as adventure tourism destinations. The Uttarakhand government has been focussing on the tourism sector of the state, post the 2013 natural disaster. In March 2015, the state government announced its plans to produce a short film of about 22 minutes to promote tourism in the state through the electronic medium. In March 2015, the state government organised a 7-day International Yoga Festival in the Yoga Capital of the World, that is, Rishikesh for promoting cultural and religious tourism in the state. The Government of Uttarakhand is also focusing on Gramin Paryatan Uthan Yojana to help villagers in generating products and services to promote tourism in the state. Tourist arrivals in Uttarakhand (in lakhs) Source: Ministry of Tourism In the budget , the state government of Uttarakhand announced plans to invest US$ million for the development of tourism sector. In addition, the state government approved a proposal worth US$ million for tourism infrastructure development, including the renovation of forts at Almora and Chamoli. Amounts of US$ million and US$ million were also approved for renovation work at Durgadhar temple and Tungeshwar Temple, respectively. 55

56 KEY INDUSTRIES TOURISM (2/2) National parks/wildlife sanctuaries in Uttarakhand Askot Sanctuary Kedarnath Sanctuary Valley of Flowers (national park) Nanda Devi National Park Rajaji National Park Corbett National Park Govind Wildlife Sanctuary Religious tourism in Uttarakhand Yamunotri Gangotri Kedarnath Badrinath Haridwar-Har ki Pauri Hemkund Sahib Main tourist centres in Uttarakhand Corbett Chakrata Mussoorie Bhimtal Nainital Lansdowne Valley of flowers Kausani Dhanaulti Ranikhet Almora Chamba Binsar Pauri Auli Mukteshwar Chopta Source: Uttarakhand Tourism Development Board Source: Uttarakhand Tourism Development Board Tourism infrastructure Tourist places 327 Tourist rest houses 159 Raien basera (night shelters) 32 Beds in T.R.H. 5,897 Beds in raien basera 1,560 Hotels & paying guest houses 4,220 Dharamshala

57 KEY INDUSTRIES BIOTECHNOLOGY Home to a variety of flora and fauna and rare species of plants and animals, Uttarakhand has a natural advantage in the sector. The state accords an industry status to the units coming under this sector (policy provisions applicable to the IT sector are applicable to this sector) and aims to establish an internationally competitive business infrastructure and environment for developing this industry. Biotechnology parks are to be developed for integrating resources and providing a focused institutional set up for accelerated commercial growth of biotechnology and bioinformatics. The state government plans to utilise and leverage biotechnology for accelerating the economic development by converting its biowealth into economic wealth. Zaneka Healthcare Pvt Ltd, Planet Herbs Lifesciences Pvt. Ltd., Olefia biopharma Limited are the major biotech companies functional in the state. New initiatives Creation of biosafety measures in the state In order to promote tissue culture oriented crops of kiwis, cashew nuts, bananas and flowers, a joint venture between Uttarakhad Horticulture Department and Uttarakhand Council for Biotechnology (UCB) has been established. UCB established a high tech web portal with international visibility to attract biotech/biopharma industries in Uttarakhand. UCB established an environmental biotechnology laboratory for the continuous monitoring of the climate in the line of biotechnology. The laboratory is based on ARIES, DST and ISRO. In order to develop smart kits for rapid detection of disease in plants, humans and animals, a molecular diagnostic and biosensor research laboratory has been established. Establishment of environmental biotechnology laboratory Source: Uttarakhand Council For Biotechnology 57

58 SINGLE-WINDOW CLEARANCE MECHANISM The IT enabled single-window contract facility is available under a two-tier system: The District Industrial Centres (DIC) at the district-level. SIDCUL at the state-level. These centres are responsible for providing information and escort services to entrepreneurs. They also maintain a data bank. Single window mechanism increases the efficiency through time and cost savings for both the traders and the government. The mechanism offers one single platform wherein parties, involved in trade and transport, lodge information and the required documents at a single point of entry. The Government of Uttarakhand announced the implementation of single window clearance system in the MSME (medium, small and micro enterprises) policy introduced in In addition, the Uttarakhand state government introduced Uttarakhand Film Policy-2015 in October 2015, that aims at offering single window clearance or hassle free clearance to the requests or applications for shooting, tourism promotion, etc. For instance, the policy along with implementation of such mechanisms is expected to offer ease to the citizens and also generate employment opportunities. 58

59 KEY INVESTMENT PROMOTION OFFICES (1/2) Agency Description Contact information State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIDCUL) Uttarakhand Handloom & Handicraft Development Council (UHHDC) SIDCUL, a Government of Uttarakhand enterprise, was incorporated as a limited company in It has equity participation from the Union Bank of India (UBI), the Oriental Bank of Commerce (OBC) and Small Industries Development Bank of India (SIDBI). SIDCUL functions as the nodal agency of the state to administer all existing Government of India (GoI) and Government of Uttarakhand schemes for industrialisation and industrial promotion. The corporation provides the industrial units with the requisite information and guides them on the approvals needed for potential investors. It is a multipurpose company for industrial promotion investment and infrastructure development. The corporation s key aim is to promote industrial development in the state; provide financial assistance by way of debt, equity, or venture capital; develop infrastructure; and assist private initiatives in the industry. It also implements and manages projects and provides specialised consultancy for finances and construction. It allows the industries and infrastructure projects in the state to be developed either directly or through special purpose vehicles, joint ventures, and assisted companies, among others. Uttarakhand Handloom & Handicraft Development Council is a registered council constituted by the state government. The council acts as a facilitator to motivate, guide and organise artisans and provide common platforms for direct interactions between creators and connoisseurs, producers and buyers. 29, IIE (IT Park) Sahastradhara Road Dehradun Phone: , , Fax: Website: Directorate of Industries Industrial Area Patel Nagar Dehradun Uttarakhand Phone: , Fax: Website: 59

60 KEY INVESTMENT PROMOTION OFFICES (2/2) Agency Description Contact information Industries Association of Uttarakhand (IAU) IAU is an apex body of small and medium scale industries of Uttarakhand. IAU is committed to the development of the state and its small entrepreneurs. It follows a two-tier system at the city-level and operates through the respective chapters. The thrust and focus of IAU is taking initiatives to help the existing industry and attract new industries in Uttarakhand. Industries Association of Uttarakhand Mohabelwala Industrial Area Dehradun Phone: Fax: info@iauonline.in,iauuttarak hand@gmail.com Website: Information Technology Development Agency (ITDA) The ITDA is an independent and autonomous body to guide and monitor various projects and provide expert inputs, monitor, evaluate and execute the state's IT initiatives and projects under the National e-governance Plan (NeGP). SIDCUL Building, 1 st floor IT Park, Shasthradhara Road Dehradun, Uttarakhand Phone: Fax: Website: 60

61 KEY APPROVALS REQUIRED List of approvals and clearances required Departments to be consulted Prior to setting up the unit Registration Allotment of land/shed Power load approval for construction load Approval for construction of building activity under the Factories Act No-Objection Certificate Provisional trade tax registrations Registration under the Central Sales Tax (CST) Act, 1956 Before commencement of production Environmental clearances No-objection Certificate Permanent trade tax Registration Registration under CST Act Industries Department State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIDCUL) Uttarakhand State Electricity Department Chief Inspector of Factories Fire and Forest Departments Central and State Excise Departments Central and State Excise Departments Uttarakhand Environment Protection and Pollution Control Board Fire and Forest Departments Trade Tax Department Central and State Excise Departments 61