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DELHI April 2010

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DELHIApril 2010

2

Investment climate of a state

Resources/Inputs

Incentives to industry Physical and social infrastructure

Regulatory framework

• Skilled and cost-effective labour• Labour market flexibility• Labour relations• Availability of raw materials and natural

resources

• Tax incentives and exemptions• Investment subsidies and other incentives• Availability of finance at cost-effective terms• Incentives for foreign direct investment (FDI)• Profitability of the industry

• Procedures for entry and exit of firms• Industrial regulation, labour regulation, other

government regulations• Certainty about rules and regulations• Security, law and order situation

• Condition of physical infrastructure such as power, water, roads, etc.

• Information infrastructure such as telecom, IT, etc.

• Social infrastructure such as educational and medical facilities

Investment climate of a state is determined by a mix of factors

DELHI April 2010

3

Contents

Advantage Delhi

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Delhi

DELHI April 2010

4

Delhi

Delhi – State profile• Delhi is the capital of the Republic of India and also a

state for administrative purposes. It covers an area of 1,483 sq km and is one of the largest metropolis in the country.

• It is home to the Union Government of the country and the state government offices. Delhi is the epicentre of international politics, trade, culture and literature in India.

• The two prominent major topographical features of the city are the river Yamuna and (terminal part of) the Aravalli hill ranges.

• The Delhi state is divided into165 administrative villages under nine districts. The Union Government’s area is managed by the New Delhi Municipal Corporation (NDMC).

• Delhi has a cosmopolitan culture with a mix of languages in use. English and Hindi are commonly spoken for everyday transactions. Punjabi, Bihari and Haryanvi, etc. are the other languages used. Source: Maps of India

Delhi April 2010ADVANTAGE DELHI

5

Trade and commerce hubDelhi has emerged as a key state with a immense scope for development of the services industry such as banks and financial services institutions (BFSI), IT and ITeS, consulting etc. It is a prominent agri-trade centre of the country as well as a preferred tourist destination. Many of the global corporations have offices in the state.

Advantage Delhi … (1/2)

The seat of GovernmentBeing the seat of the Central Government, Delhi has an important position in the country in terms of formulation of policies. It has also become an important centre for trade and commerce with a number of key industry associations being present. The state also hosts several trade conventions and fairs throughout the year.

The state proposes a wide range of fiscal and policy incentives for businesses under the Industrial Policy, 2010. Additionally, the state has well drafted sector-specific policies.

Policy and fiscal incentives

Source: Maps of India

Delhi April 2010ADVANTAGE DELHI

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Facilitating infrastructure Delhi has well developed social, physical and industrial infrastructure and virtual connectivity. It has an international airport and well developed rail and road infrastructure. There has been significant infrastructure and environmental development in Delhi over the last 20 years.

Stable political environmentDelhi has a stable political environment with a single-party government. The State Government has been committed towards creating a progressive business.

Advantage Delhi … (2/2)

Delhi attracts skilled and semi-skilled labourers from across the country. It has a large pool of semi-skilled and unskilled labour, especially, in the 15 to 49 age group who serve the requirements of various industries.

Rich labour pool

Source: Maps of India

Delhi April 2010ADVANTAGE DELHI

7

Delhi in figures … (1/2)Parameter Delhi All states Source

Economy

GSDP as percentage of all states’ GSDP 3.6 100.0 CMEI, 2006-07, current prices

Average GSDP growth rate (%) 14.8 7.5 CMIE, 1999-2000 to 2007-08

Per capita GSDP (US$) 2,136.0 998.1 CMIE, 2007-08

Physical Infrastructure

Installed power capacity (MW) 920.4 98,996.4 Central Electricity Authority, as of March 2009

GSM cellular subscribers (No) 15,441,537 367,328,179 Cellular Operators Association of India, as of November 2009

Broadband subscribers (No) 588,716 4,981,976 As of October 2008

National Highway length (km) 72.0 70,548.0 Ministry of Road Transport and Highways, 2007-08

Major and minor ports (No)* - 12 + 187 Ministry of Shipping

Airports (No) 1+1 133 Industry sources

Social Indicators

Literacy rate (%) 81.6 64.8 Census of India, 2001

Birth rate (per 1,000 persons) 19.95 23.3 Central Bureau of Health Intelligence, 2007

*Delhi has a large inland container depot that serves as a dry port for the North India region

Delhi April 2010ADVANTAGE DELHI

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Delhi in figures … (2/2)

Parameter Delhi All-states Source

Ease of doing business

FDI inflows (US$ billion) 19.3 102.1Department of Industrial Policy & Promotion,

April 2000 to October 2000

Outstanding investments (US$ billion)

17.3 1,709.7 CMIE, as of December 2008

Industrial Infrastructure

PPP projects (No) 10 460 www.pppindiadatabase.com

SEZs (No) 1 98 Functional as of August 2009, www.sezindia.nic.in

Parameter Delhi Government

Policy support

Sectors with specific policies Industry overall, IT and ITeS, transport

Availability of labour Adequate skilled labour available

PPP: public-private partnership, SEZ: special economic zone

Delhi April 2010ADVANTAGE DELHI

9

Medium HighLow

Medium

High

Tourism

Agro and food processing

IT and ITeS

Infrastructure development

BFSI

Industry attractiveness matrix

*Factor advantage

Polic

y th

rust

*Factor advantages include benefits due to geographical location and availability of factors like talent pool, natural resources and capital

Key industries with policy thrust and factor advantages

Telecommunication

Delhi April 2010ADVANTAGE DELHI

10

Contents

Advantage Delhi

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Delhi

DELHI April 2010

11

Socio-economic snapshot of Delhi

Parameters Delhi

Geographical area (sq km) 1,483

Administrative districts (No) 9

Population density (persons per sq km) 9,340

Total population (million) 13.80

Male population (million) 7.60

Female population (million) 6.20

Decadal population growth rate (%) 47.02

Sex ratio (females per 1,000 males) 821

Literacy rate (%) 81.67

Male (%) 87.33

Female (%) 74.71

Average life expectancy

Male (years) 67.40

Female (years) 71.10

Sources: Delhi Government website (delhigovt.nic.in), Economic Review, 2008-09

Delhi April 2010

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

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11.85

12.45

13.54

15.65

18.18

20.37

23.51

29.83

35.80

0.00 10.00 20.00 30.00 40.00

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

CAGR14.8 %

• At current prices, the Gross State Domestic Product (GSDP) of Delhi for 2007-08 was US$ 35.81 billion.

• Between 1999-2000 and 2007-08, the average annual GSDP growth rate was 14.8 per cent.

• The growth was driven by the expansion of the services sector. Banking and insurance, real estate, trade, tourism and communications were driving the progress in the sector.

Delhi’s GSDP (US$ billion)

Delhi’s GSDP

Source: CMIE

Delhi April 2010

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

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10.98

11.49

12.48

14.44

16.77

18.55

21.44

27.24

32.81

0.00 10.00 20.00 30.00 40.00

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

CAGR14.66%

• The Net State Domestic Product (NSDP) of Delhi was about US$ 32.81 billion in 2007-08.

• The average NSDP growth rate between 1999-2000 and 2007-08 was about 14.66 per cent.

Delhi’s NSDP (US$ billion)

Delhi’s NSDP

Source: CMIE

Delhi April 2010

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

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The tertiary sector dominates Delhi’s economy• Delhi’s economy is unique as it is dependent on commerce and trade more than on manufacturing and

agriculture. In 1996, the Supreme Court of India ordered over 90,000 industrial units to relocate outside the state in order to control increasing levels of pollution. Consequently, the state now is left with very small scale industries which are mostly non-polluting.

• In 2007-08, at US$ 28.3 billion, the tertiary sector contributed 99 per cent to the GSDP of Delhi at constant prices.

1999-2000 2007-08

Source: CMIE

Delhi April 2010

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

2%

98%

Primary

Tertiary

1%

99%

Primary

Tertiary

15

Per capita GSDP

• The per capita GSDP of Delhi increased almost 2.4 times from US$ 901 in 1999-2000 to US$ 2,136 in 2007-08.

• Per capita GSDP recorded CAGR of 10.1 per cent between 1999-2000 and 2007-08.

(US$

)

Source: CMIE

Per capita GSDP

901.1 912.4 957.41077.3

1216.2 1323.71485.3

1831.0

2136.0

0.0

500.0

1000.0

1500.0

2000.0

2500.0

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Delhi April 2010

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

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Financial institutions, food processing, ITeS, consulting and tourism sectors drive Delhi’s economy

Key industries in Delhi

• BFSI

• IT and ITeS

• Tourism

• Food processing

• Construction and engineering

• SSI: textiles, handlooms, printing and publishing

• The location advantage , policy incentives and infrastructure in the state support investments in sectors such as IT/ITeS, banking and financial services industry (BFSI) and tourism activities.

• According to the Delhi 2021 Master Plan, sophisticated hi-tech industries will be promoted with special emphasis on high value-added products. The plan emphasises on industrial development without effluents, smoke and noise pollution.

• According to the Draft Industrial Policy, the Delhi Government will encourage export oriented and import-substitute industries as well as marketing related industries.

• The Government is also encouraging activities allied to industry, such as consultancy, training of skilled manpower through vocational training programmes and entrepreneurial development programmes.Source: www.delhiplanning.nic.in

SSI: small scale industry

Delhi April 2010

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

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Delhi – an important center for agri-trade in the country … (1/2)

Crop Annual production (‘000 tonnes)

Rice 23.0

Wheat 75.0

• In 2007-08, the total production of the major crops of the state was around 98,000 tonnes. Commonly grown crops are wheat, maize, millet, vegetables and fruits.

• The Food Corporation of India (FCI) was setup under the Food Corporations Act, 1964, of the Union Government to meet the objectives of the Food Policy which are as follows:

• Effective price support for safeguarding the interests of the farmers.

• Distribution of food grains throughout the country for Public Distribution System (PDS)

• Maintaining a satisfactory level of operational and buffer stocks of food grains to ensure national food security.

As of 2007-08Source: CMIE

Delhi April 2010

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

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Delhi – an important center for agri-trade in the country … (2/2)

• Over the years FCI has played an important role in controlling supply, prices and disaster management in times of droughts etc. The corporation is headquartered in Delhi.

• The Indian Agricultural Research Institute (IARI), the country's premier national institute for agricultural research, education and expansion, also has a centre in Delhi located close to the New Delhi railway station.

Delhi April 2010

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

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Delhi’s exports trends

Annual exports growth trends * (%)

25.7

19.2

38.3

18.2

56.7

18.2

38.6

10.2

0.0 10.0 20.0 30.0 40.0 50.0 60.0

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

* Includes the National Capital RegionSource: Capital Market

• In 2007-08, exports from Delhi’s National Capital Region (NCR) increased 10.2 per cent over the previous year. The annual growth rate was the highest in 2004-05.

• Some of the key products for exports included food products, electrical and engineering equipment, IT services, telecom equipment, oil and gas, steel products and other minerals and traded products.

Delhi April 2010

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

20

20%

13%

53%

0% 14%

ManufacturingElectricityServicesIrrigationConstruction

• According to the Reserve Bank of India, FDI inflows in the state* from April 2000 to October 2009 amounted to US$ 19.3 billion.

• Of the total outstanding investments of US$ 17.32 billion as of December 31, 2008, the services sector had the highest share of investments at 53 per cent. Manufacturing, electricity, irrigation and construction had project investments of less that 20 per cent each.

Investments and FDI inflows

Break-up of investments by sector

As of December 31, 2008

Source: CMIE

*Includes part of Uttar Pradesh

Source: Department of Industrial Policy & Promotion

Delhi April 2010

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

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Company logos cited in this section are registered trademarks of the respective companies

Contents

Advantage Delhi

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Delhi

DELHI April 2010

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• Delhi has a total road length of over 30,923 km.

• According to the National Highway Authority of India (NHAI), about 72 km of National Highways run through the state.

• The Finance bills of the last few years have laid increasing emphasis on the transport sector. Considering the need for improvement of the facilities, the sector has been receiving significant financial allocation.

• Action has also been taken to implement the Delhi Integrated Multi Modal Transport System (DIMTS).

• The existing road network is being upgraded and express highways and freeways being constructed along key routes in Delhi and the NCR.

• The “Golden Quadrilateral” project of the NHAI directly connects Delhi to other major markets and cities of the country.

Road network

Road type Length (km)

Total 30,923

National Highways 72.0

Major planned schemes for Delhi’s road transport

Computerisation of records

Motor driving training schools

Mass rapid transit systems (MRTS)

Decongestion of inter-state bus terminals

Control of vehicular air pollution

Parking facilities

Restructuring of Delhi Transport Corporation

Incentives for replacement of old light commercial vehicles

Source: Department of Transport, Government of NCT of Delhi

Delhi April 2010

INFRASTRUCTURE STATUS

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Main railway stations of Delhi

• Delhi is well connected by rail network to other parts of India. A significant part of trade is supported by the strong railway link.

• Delhi is a major junction in the rail network of India and has direct links to the major cities of India.

• There are three main railway stations at: New Delhi, Old Delhi and Hazrat Nizamuddin.

Sources: Government of India, Northern Railways’ website (www.nr.indianrail.gov.in), rites website (www.rites.com), CONCOR website (concorindia.com)

Railway network

Old Delhi station

Hazrat Nizamuddinstation

New Delhi station

RITES and CONCOR

RITES Limited is an enterprise of the Government of India. It was established in 1974, under the aegis of Indian Railways to provide comprehensive engineering, consultancy and project management services in the transport infrastructure sector. The registered office is located in Delhi.Container Corporation of India Limited (CONCOR) is a Government of India enterprise, operating inland transport services, clearance, and cargo handling facilities throughout India.

Source: Maps of India

Delhi April 2010

INFRASTRUCTURE STATUS

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Airports

• The Indira Gandhi International Airport (IGIL) is located about 16 km miles from the New Delhi city centre.

• The international airport at Delhi is one of the busiest in the world and expansion plans are being implemented to enhance aircraft and passenger handling capacity.

• Key features of expansion plans:

• The planned ultimate design capacity of the airport is100 million passengers per annum (mppa).

• As a part of preparation for the Commonwealth Games 2010, Phase-1 of the project is planned to have capacity of 37 mppaby March 2010.

• Plans include construction of an integrated passenger terminal (Terminal-3) catering to both, domestic and international passengers.

Delhi International Airport Limited (DIAL)

Project awarded in May 2006

Constructed by a consortium of:• GMR group• Fraport Consortium (Fraport & Eraman Malaysia )• Airports Authority of IndiaDomestic terminal (Terminal-ID), other terminals include IA, IB,IC and Terminal 2-the internationalterminal. Terminal 3 construction is planned.

Total land area available: 5,106.0 acres.

Total passenger traffic: 22.8 million in 2008-09.

Total aircraft movement: 200,000 in 2008-09.

Total cargo movement: 400,000 in 2008-09.

Sources: pppindiadatabase.com, newdelhiairport.in

Delhi April 2010

INFRASTRUCTURE STATUS

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Delhi metro rail project … (1/2)

• The Delhi Metro Rail Corporation (DMRC) was registered in 1995 under the Companies Act, 1956, for development of Delhi Mass Rapid Transit System (MRTS).

• DMRC has equal equity participation from the Government of India and Government of National Capital Territory of Delhi (GNCTD).

• The objectives of the Delhi metro rail are as follows:

• To cover the whole of Delhi with a metro rail network by the year 2021.

• Delhi metro to be of world-class standards in terms of safety, reliability, punctuality, comfort and customer satisfaction.

• Delhi metro to operate on commercial lines, obviating the need for government support.

Delhi April 2010

INFRASTRUCTURE STATUS

26

Delhi metro rail project … (2/2)

ISBT: inter-state bus terminusSource: DMRC website (www.delhimetrorail.com)

Phase-1 Network (completed)

Line Length (km) No of stations

Line No 1- Shahdara-Tri Nagar-Rithala 22.0 18

Line No 2- Vishwa Vidyalaya-Central Secretariat 10.8 10

Line No 3- Indraprastha-Barakhamba Road-Dwarka sub-city 32.1 31

Phase-II Network (being implemented)

Line Length (km) No of stations

Shahdara-Dilshad Garden 3.09 3

Indraprastha-Noida (Sector-32) City Centre 15.07 11

Yamuna Bank-Anand Vihar ISBT 6.17 5

Vishwavidyalaya-Jahangir Puri 6.36 5

Inderlok-Kirti Nagar-Mundka 18.46 15

Central Secretariat-Sushant Lok (Gurgaon) 27.45 19

Dwarka (Sector-9)-Dwarka (Sector-21) 2.76 2

New Delhi-Airport 19.20 4

Anand Vihar-KB Vaishali (Ghaziabad) 2.57 2

Central Secretariat-Badarpur (Faridabad) 20.04 15

Delhi April 2010

INFRASTRUCTURE STATUS

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35%

65%

Coal

Gas

• As of March 2009, Delhi had a total installed power generation capacity of 920.4 MW, which is wholly controlled by the State Government.

• The capacity owned by state utilities comprised about 35 per cent of coal-based power plants and 65 per cent of gas-based power plants.

• In addition, NTPC provides 705 MW to the state.

• At over 1,265 kWh, Delhi has one of the highest per capita electricity consumption among all the states in India.

Installed state and private capacity (MW)

Power … (1/3)

706.6

932.4

932.4

932.5

932.5

932.4

932.4

920.4

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

Mode-wise classification of installed power capacity

*Includes utilities and private sectorSource: Central Electricity Authority

Delhi April 2010

INFRASTRUCTURE STATUS

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• The Delhi Vidyut Board was set up in 1997 under the Electricity Act, 1948, and it replaced the Delhi Electricity Supply Undertaking.

• As privatization was expected to bring efficiency to Delhi Vidyut Board, it was re-structured and the business of power distribution was transferred to three private companies – BSES Yamuna Power Limited (BYPL) and BSES Rajdhani Power Limited (BRPL) and North Delhi Power Limited (NDPL). An agreement was signed in May 2002, between the Government of Delhi and BSES and Tata Power, paving the way for privatisation of electricity distribution in the state.

• BSES acquired a controlling interest in two of the distribution companies, viz., South-West Delhi Electricity Distribution Company Limited and Central-East Delhi Electricity Distribution Company Limited, and the Tata Power Company took management control of the third distribution company viz., North-Northwest Delhi Distribution Company Limited.

Power … (2/3)

Delhi April 2010

INFRASTRUCTURE STATUS

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Power … (3/3)

Segment Name of company

Power generation

Indraprastha Power Generation Co Limited (IPGCL)Pragati Power Limited (PPCL)

Power transmission Delhi TRANSCO Limited (DTL)

Power distribution

BSES Yamuna Power Limited (BYPL)

BSES Rajdhani Power Limited (BRPL)

North Delhi Power Limited (NDPL)

Power distribution in Delhi

DISCOM 1

DISCOM 2

DISCOM 3

Sources: delhisldc.org, www.bsesdelhi.com, www.ndpl.com, delhitransco.gov.in, ndplonline.com, ipgcl.com

Delhi April 2010

INFRASTRUCTURE STATUS

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Telecom infrastructure

*Includes Noida, Gurgaon, Ghaziabad and Faridabad.

• According to the Telecom Regulatory Authority of India (TRAI), the Delhi circle had a total of 15.4 million cellular phone subscribers as on March 31, 2009, accounting for 5.81 per cent share in the overall cellular base of the country.

• The state had 580,000 broadband subscribers* as of 2008.

Telecom infrastructure (2007-08)

Cellular subscribers: about 15.4 million

Internet/broadband subscribers: about 580,000

Major Telecom operators in Delhi

• Bharti Airtel

• IDEA Cellular

• Vodafone Essar

• Mahanagar Telephone Nigam Limited (MTNL)

• Aircel Limited

Source: Cellular Operators Association of India (COAI)

Delhi April 2010

INFRASTRUCTURE STATUS

31

• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), projects costing US$129.6 million have been sanctioned for Delhi.

• The projects have been sanctioned for completion between 2008-09 and 2009-10. The key projects focus on traffic management plan for designated areas, sewerage system improvement and urban renewal plans along with heritage conservation.

• According to the Delhi 2021 Master Plan, special emphasis has been laid on improved solid-waste management policies. The short-term goals are: capacity building with respect to financial services and performance management, effecting trial runs of collection and waste-reduction schemes, developing transport, land-fill sites and transfer stations for waste and focussing on bio-medical and hazardous waste management program.

• With respect to traffic management the focus in the master plan is on developing integrated multi-modal transport-system, creating infrastructure for alternate transport, e.g. bicycles, creating an environment for public transport prioritization by customers, and improving suburban railway with technology upgrade.

Urban infrastructure

Sources: JNNURM, Ministry of Urban Development, delhiplanning.nic.in

Delhi April 2010

INFRASTRUCTURE STATUS

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Project name Sector PPP type Project cost (US$ million) Stage

Modernisation of Delhi International Airport Airports LDOT 1,869.6 Under construction

Development of Delhi International Centre near Andhra Bhavan, New Delhi Urban development DBFOT 231.3 Planned

Delhi-Gurgaon highway Roads BOT-toll 154.3 In operation

Delhi Noida Toll bridge Roads BOOT 88.7 In operation

Badarpur elevated highways Roads BOT-toll 73.9 In operation

Integrated municipal waste processing complex at NDMC compost plant site, Okhla Urban development BOOT 14.1 In operation

Construction of 197 Bus-Q-Shelters in NDMC area Urban development BOOT 3.3 In operation

Development of integrated multilevel parking infrastructure at three sites in the NDMC area Urban development BOOT 1.7 In operation

Centralized waste treatment facility at Ghazipur Urban development 1.3 In operation

Centralized biomedical waste treatment facilities, Okhla Urban development BOT - annuity 0.2 In operation

Key public-private partnership projects

LDOT: Lease-develop-operate-transfer, DBFOT: Design-build-finance-operate-transfer, BOT: Build-operate-transfer, BOOT: Build-own-operate-transfer, EOI: Expression of interestSource: pppindiadatabases.com

Delhi April 2010

INFRASTRUCTURE STATUS

33

Education sector … (1/2)

• Delhi had a literacy rate of 81.67 per cent as against the national average of 65 per cent as per the Census 2001.

• In 2001, the male literacy figure stood at 87.33 per cent, while female literacy was at 74.71 per cent.

• During 1991-2001, male and female literacy rates have improved by 5.36 per cent and 8.01 per cent, respectively.

• The gap between male and female literacy rates also has come down from 15.02 per cent (in 1991) to 12.37 per cent in 2001.

• As of 2007-08, there were 51 pre-primary schools, 2,584 primary schools, 653 middle level schools and 1,759 senior secondary/ secondary schools in Delhi.

Delhi April 2010

INFRASTRUCTURE STATUS

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Education sector … (2/2)

• At the intermediate college level, courses in the science, arts and commerce streams are offered.

• Vocational courses are offered in the fields of agriculture, engineering and technology, home science, paramedical, business and commerce, and humanities.

Delhi April 2010

INFRASTRUCTURE STATUS

Higher education in Delhi

• No of universities-5

• Deemed universities-8

• Institutes of national importance-2

• Colleges for general education-78

• Only boys-1

• Only girls-20

• Co-educational-57

• Colleges for professional education-8

• Only girls-2

• Co-educational-86

Recognised universities

• Delhi University

• Jawaharlal Nehru University

• Jamia Millia Islamia University

• Jamia Hamdard University

• Guvru Gobind Singh University

• Indraprastha University

• Indira Gandhi National Open University

Leading professional and degree colleges

• Indian Institute of Technology, Delhi (IIT Delhi)

• Netaji Subhas Institute of Technology

• Delhi College of Engineering

• All India Institute of Medical Sciences (AIIMS)

• Lady Shri Ram College for Women,

• Delhi School of Economics

• St Stephen's College

• Indian Institute of Mass Communication

• Indian Statistical Institute

35

• Delhi had eight primary healthcare centres (four to six beds) as of March 2007, with 79 beds.

• There were 547 allopathy-based dispensaries , 198 ayurveda-based and 133 homeopathy-based.

• Delhi has approximately 713 hospitals that classify as authorised centres for providing medical services across allopathy, ayurvedic, unani systems.

Leading hospitals in Delhi

All India Institute of Medical Sciences (AIIMS)

Hindu Rao Hospital

Dr Ram Manohar Lohia

G. B. Pant Hospital

Moolchand Hospital

National Chest Institute

National Heart Institute

Rajiv Gandhi Cancer Institute & Research

Safdarjung Hospital

Deen Dayal Hospital

Guru Teg Bahadur Hospital

Sources: Economic survey, 2008-09, Bulletin on rural health care statistics in India, Ministry of Health & Family Welfare website (www.mohfw.nic.in)

Health infrastructure

Leading private hospitals in Delhi

Batra Hospital

Indraprastha Apollo Hospitals

Escorts Heart Institute and Research Centre

Fortis Hospital

Delhi April 2010

INFRASTRUCTURE STATUS

36

• Delhi’s rich history is reflected in its forts, monuments, palaces, gardens and bazaars that were created by its rulers during the different periods of their occupation.

• At present, the remains of a large number of such historical places and monuments are the sites of attraction for visitors and tourists in Delhi.

• In addition to these historical places, a large number of gardens, buildings, playgrounds, institutional buildings, markets and event places were constructed by the British till1947 and thereafter by the Government of India and Government of Delhi.

• In addition, Delhi and the NCR have number of convention centres, golf courses, hotels, restaurants, and recreational centres offering international standard of services.

Cultural Infrastructure

Key cultural destinations in Delhi

Purana Quila

Qutub Minar

Tughlakabad Fort

Red Fort

Humayun Tomb

Safdarjung Tomb

Jama Masjid

Rashtripati Bhawan, Sansad Bhawan,Central Secretariat

India Gate

Lodhi Garden, Nehru Park, Buddha Jayanti Park

Connaught Place

Lotus Temple

Akshardham Temple

Delhi April 2010

INFRASTRUCTURE STATUS

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• Delhi is the host city for Commonwealth Games 2010.

• For its successful organisation the State Government has taken up 59 projects/schemes directly related to games. Some of the major projects/schemes are as follows:

• Construction of Tyagraja stadium.

• Renovation and expansion of the Talkatora, Shivaji and Chhattrasal stadiums.

• Construction of a training indoor stadium at Ludlo Castle.

• Construction of water treatment plant and sewerage water treatment plant at the games village.

• A polyclinic will also be established at the games village, in addition to medical centres at each location.

• IT system for commissioning a dedicated communication-network system.

Cultural Infrastructure – Common Wealth Games 2010 … (1/2)

Delhi April 2010

INFRASTRUCTURE STATUS

38

Cultural Infrastructure – Common Wealth Games 2010 … (2/2)

Commonwealth Games, 2010

Motto: COME OUT and PLAY

Participating nations: 72

Events across disciplines: 17

Aquatics, Archery, Athletics, Badminton, Boxing, Cycling, Gymnastics, Hockey, Lawn bowls, Net ball, Rugby, Shooting, Squash, Table Tennis, Tennis, Weightlifting, Wrestling

Opening ceremony: October 03, 2010Closing ceremony: October 14, 2010

Source: www.cwgdelhi2010.org

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• On the industrial infrastructure front, the State has taken a number of development initiatives to achieve consistent economic growth.

• The State Government has initiated a set of prestigious projects including those in industrial infrastructure for the specific sectors, through the Delhi State Industrial and Infrastructure Corporation Limited (DSIIDC).

Industrial clusters

Source: dsidc.org

Narela Industrial Complex

612 acres of land has been developed by DSIIDC in the Narela region. The first phase of construction of 1,800 plots is over.

The construction of facility centres, providing shops and commercial spaces have already been completed.

About 50,000 trees have been planted in the complex. An area of 10 acres covered under the central park is proposed to be developed as central plaza.

Of the remaining land available in the estate, 70 acres is proposed to be utilized for relocation of industries. There is also a proposal for construction of a high-tech-estate for ITeS in an area of 50 acres available in the complex.

Industrial areas in Delhi

Kirtinagar Industrial Area: Kirtinagar Industrial Area is located in Western part of Delhi and has been developed by the DSIIDC.

Mangolpuri Industrial Area: Mangolpuri Industrial Area is located in Western part of Delhi and has been developed by the DSIIDC.

Naraina Industrial Area: Naraina Industrial Area is located in Northern part of Delhi. It was set up by the Delhi Development Authority (DDA) in 1970. It occupies place of pride among the industrial estates in Delhi and is divided into two phases with around 1,200 industrial units, which manufacture electronic and electrical goods, engineering goods, plastic goods, readymade garments and sanitary fittings.

Okhla Industrial Area: Okhla Industrial Area is located in Southern part of Delhi and is hub of industrial activity. Many export houses are located in the area along with some of the multinationals such as Oriflame.

Source: dsidc.org

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Sources: www.delhimetrorail.com, industry sources

IT park, Shastri park

Upcoming SEZ at Baprola

SEZ for IT and ITeS: The IT and ITeS special economic zone ( SEZ) is being set up in an area of 26 acres at an estimated cost of US$ 85.8 million.

The SEZ is expected to provide direct employment to 36,000 people while generating 108,000 jobs, indirectly. The IT SEZ will also house convention halls, hotels, a hospital and residential accommodation.

SEZ for Gems and jewellery: It is being set up in an area of 41.4 acres at an estimated US$ 106 million.The SEZ is expected to provide direct jobs to 18,000 people and indirect employment to 54,000 people.

• The Delhi Metro Rail Corporation Limited (DMRC) has conceptualized and developed a world-class IT Park complex comprising IT Park Block-1 (Operational), IT Park Block-2 , which is ready for occupancy and IT Park Block-3 (yet to be constructed).

• The complex is situated very close to Shastri Park metro station.

• IT Park Block-1 has got the distinction of being 'Delhi's First IT Park'. It is an intelligent and fully air-conditioned building, equipped with several facilities and state-of-the-art technical systems. This building has been in operation since April 2005.

• IT Park Block-2 is an improved version of IT Park Block-1. Additionally, it is technologically advanced and is also National Buildings Code, 2005, compliant.

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SEZs

SEZs and industrial clusters Industrial clusters in Delhi

IT and ITeS SEZ-Baprola

Gems and JewellerySEZ-Baprola

IT Park, ShastriPrak, DMRC

Narela Industrial Complex

Okhla Industrial Area

Kirtinagar Industrial Area

Mangolpuri Industrial Area

Naraina Industrial Area

SEZ Location

Industrial Area Location

INDEXOperational

Upcoming

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Infrastructure type Investments (US$ million)

Power* 1,312.9

Roads 591.8

Oil and gas -

Railway 585.6

Airport 2,232.1

Shipping -

Total 4,722.4

Infrastructure investments

*Generation and distributionSource: CMIE

• As of December 2008, infrastructure investments in Delhi were over US$ 4.7billion.

• Over 70 per cent of investments in infrastructure were in the area of power generation cum distribution and airports .

• About 12 per cent of the investments were in the roads sector, while another 12 per cent were in the railways sector.

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Contents

Advantage Delhi

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Delhi

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Information Technology Policy, 2000

Aim: The IT policy is governed by six “Es”: electronic-governance, equality, education, employment, entrepreneurship andeconomy. The policy aims to promote these six goals in an integrated and parallel fashion for the overall development ofinformation, communication technology in the State in terms of infrastructure and usage.

Objectives:• E-governance: To use e-governance as a tool and deliver a government that is more proactive and responsive to its citizens.

• Equality: To use the power of the IT to achieve the objectives of eradicating poverty, improving healthcare, empowering womenand economically weaker sections of the society.

• Education: To encourage the use of IT in schools, colleges and educational institutions in the state of Delhi so as to enable the students to improve their skills, knowledge and job prospects and enable them to obtain employment in this sunrise industry.

• Employment: To use IT for generating additional employment for the new digital economy.

• Entrepreneurship: To unleash the Delhi incubation engine, promote entrepreneurship, earn foreign exchange, and increase contribution of IT to economic growth of the state.

• Economy: To encourage and accelerate investments and growth in IT hardware, software, internet, training, IT enabled services, telecom, e-commerce and related sectors in the state.

• To use IT effectively in industries to make them competitive and web-enabled.

• To provide adequate infrastructure in the state so that IT sector can flourish.

• To use IT for ushering world-class e-tourism in the state.

Sector-specific policies … (1/5)

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IT Policy, 2000 (continued)

Incentives:

• Zero sales tax*: The government is in favour of zero sales tax on the transactions of various IT related hardware and software like-

• Sale and leasing of computers and its accessories.

• Inter-state sales of computers, parts, accessories and computer consumables.

• CD-ROMS, optical disc media or magnetic media containing text, data or multimedia.

• IT industries in residential area:The state government shall strongly recommend to the Government of India to permit software and service units to function in residential areas subject to such reasonable restrictions as may be imposed by the government in public interest.

• IT software and service industry is entitled to industry status, which facilitates easy loans and financing at industry rates.

• The industry units will be exempted from routine checks and they have facility for self-certification.

• They have been given permission for a three-shift operation.

• The government will establish modern IT parks in collaboration with private sector. The parks will have high-speed telecom facility and plug and play built-up modules for minimising gestation period of new projects.

• Establishing Incubation centre: The state government will set up an “Incubation Centre” that will guide entrepreneurs to makebusiness plans, advise on mergers and acquisitions, and network with venture capital companies including the Venture Capital Fund Company to be created by the government of Delhi. The Centre will also undertake financing of small IT companies.

Sector-specific policies … (2/5)

*However, in keeping with the ruling of a uniform sales tax in all states, the government shall fix the sales tax on hardware and software not above the agreed uniform floor rate (UFR). The state government however lobbies for zero sales tax on all IT products along with other states and central government.

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Transport Policy , 2002

Objectives: This policy has been framed with a view to provide safe, eco-friendly, cost-effective and efficient modes of transportation through a well integrated multi-modal transport system. The policy aims to make Delhi a well-managed, clean and dynamic city, which is involved in serving its citizens efficiently.

Key initiatives:

• Reduce traffic congestion on roads.

• Improve air quality by lower levels of vehicular pollution.

• Enhance road safety while improving amenities for commuters.

• Augment mass transport by massive investments accompanied by institutional improvements.

• Provide adequate, accessible and affordable modes such as buses, mini buses, electric trolley buses complemented by a networkof rail-based mass rapid transit systems, etc.

Sector-specific policies … (3/5)

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Industrial Policy, 2010

Aim: Industrial Policy has been framed in alignment with Master Plan for Delhi-2021. It will be implemented from 2010 to 2021. The new policy would promote new-age sectors along with traditional non-polluting industries so as to boost revenues and reduce pollution in the capital.

The focus areas:• It aims to propagate the process for operation and management of four industrial estates such as Patparganj, Narela, Bawana and

Okhla Phase-III through public-private partnership.

• The Delhi Government and the Delhi State Industrial and Infrastructure Development Corporation had developed seven industrial areas, industrial sheds in six industrial areas and flatted-factory complexes and in these areas, the industries cannot be set up as per the new Master Plan. Their establishment will be facilitated by the new Industrial policy.

• Special focus on SEZ has also been laid in the policy.

Sector-specific policies … (4/5)

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Industrial Policy (Continued)

Key objectives:

• To evolve an appropriate mechanism to promote industrial growth in the desired sectors.

• To maximise production and achieve higher productivity through modernised and more efficient work techniques and optimumutilization of available resources.

• To discourage migration of unskilled labour into the NCT of Delhi from the adjoining states.

• To constantly strive to promote industries in accordance with the provisions of the Master Plan for Delhi, 2021.

• To upgrade the technology level of the existing industries by providing them technical and financial support.

• To promote sophisticated hi-tech industries, with special emphasis on high-value added products with reduction of effluents, smoke, noise and pollution in the capital.

• To promote export oriented and import substitute industries as well as marketing related industries.

• To encourage activities allied to industry, such as marketing services, consultancy, training of skilled man-power through vocational training programmes and entrepreneurial development programmes.

• To impose a complete ban on setting-up of hazardous/noxious and heavy and large industries as per the master plan of 2021.

Sector-specific policies … (5/5)

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Company logos cited in this section are registered trademarks of the respective companies

Contents

Advantage Delhi

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Delhi

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Banking and Financial Services sector

• The city is home to a number of private and public banks and financial services institutions (BSFI).

• These business houses deal in banking transactions, documentations, negotiations, loan agreements, etc. The city also has commercial banks, industrial banks and some of the leading foreign banks.

• The service points are spread across the city while the Connaught Place, Chandni Chowk, Barakhambaroad are the key points in the city where key offices of a large number of organisation are located.

Key players

Reliance Life InsuranceLife Insurance CorporationTravelexState Bank of IndiaUnited Bank of IndiaRoyal Bank of Scotland (formerly, ABN Amro Bank)Bank of AmericaCITIBANKDeutsche BankHSBC BankStandard Chartered BankBNP ParibasPower Finance Corporation

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BFSI – company profiles … (1/4)

Reliance Life Insurance • Reliance Life Insurance is an associate company of Reliance Capital Limited, a part of Reliance - Anil Dhirubhai Ambani Group.

• Reliance Capital is one of India’s leading private sector financial services companies, and ranks among the top private sector financial services and banking companies, in terms of net worth. It has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services.

• In Delhi the insurance company has branches located at Asaf Ali road, Chandni Chowk, Janakpuri, Najafgarh, Narela, etc.

Life Insurance Corporation • The Life Insurance Corporation of India (LIC) is the largest life insurance company in India. It was founded in 1956 and it is also the country's largest investor. It is fully owned by the Government of India. It has assets of an estimated US$170 billion. Headquartered in Mumbai, the Life Insurance Corporation of India currently has eight zonal offices and 101 divisional offices located in different parts of India, at least 2,048 branches located in different cities and towns of India along with satellite offices attached to about 50 branches, and has a network of around 1.2 million agents for soliciting life insurance business from the public. It has Northern region headquarters at Connaught Place.

Travelex • Travelex is the world’s largest non-bank provider of commercial cross-border payment services. It is the world’s largest retail foreign exchange specialist, with over 700 branded retail branches, principally in airports and tourist locations. The business also provides outsourced travel money services by supplying the foreign currency needs of financial institutions and travel agencies, as well as by fulfilling the individual orders of their customers. It has an office at Connaught Place, Delhi.

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BFSI – company profiles … (2/4)

State Bank of India • The State Bank of India is the country’s oldest bank and largest in terms of balance sheet size, number of branches, market capitalization and profits.

• Today, the bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500 list.

• The bank is also provides complete payment solution to its clientele with its over 8,500 automated teller machines (ATM) and other electronic channels such as Internet banking, debit cards and mobile banking.

• The bank is entering into many new businesses with strategic tie-ups – pension funds, general insurance, custodial services, private equity, mobile banking, point-of-sale merchant acquisition, advisory services, structured products – each one of these initiatives with a huge potential for growth.

• In Delhi, it has branches located at Najafgarh Village, AGCR Building, Ajmal Khan road, AnajMandi Shahdara, Anand Vihar, Ansari Naagr, Asaf Ali Road, Ashok Vihar and Asian Games Village.

United Bank of India • United Bank of India (UBI) is one of the 14 major banks which were nationalised in July 1969. Its predecessor the United Bank of India Limited., was formed in 1950 with the amalgamation of four banks viz., Comilla Banking Corporation Limited (1914), Bengal Central Bank Limited (1918), Comilla Union Bank Limited (1922) and Hooghly Bank Limited (1932).

• Today, the bank has 1,484 branches. In Delhi, the bank has branches located in Aruna Asaf Ali road, CR Park, Chandni chowk, Chittranjan Park, Connuaght Circus, Daryaganj, etc.

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BFSI – company profiles … (3/4)

ABN Amro Bank • Recently acquired by the Royal Bank of Scotland, ABN Amro Bank is a global bank for most business and personal financial needs, offering a comprehensive range of banking products, from retail and investment banking to asset management and private banking.

• The banking network spans around 3,568 branches with offices spread across more than 320 cities and 76 countries and territories. There is more than 100,000 highly qualified staff at present associated with the bank. In Delhi, the bank has branches located at Barakhamba Road, Hauz Khas, Greater Kailash, Rajouri Garden, etc.

Bank of America • The Indian branch of the Bank of America was started in the year 1960 in Hyderabad and added four more branches by 1999. The business processes of bank are handled in Hyderabad, Mumbai and Gurgaon. The major divisions of the bank are corporate banking, consumer banking, investment management and international operations. The bank has presence in Asia, Europe, Middle-East, Africa, Latin America, U.S. and Canada. The bank has offices in Delhi in central locations such as Connaught Place.

CITIBANK • Citibank was established in India in the year 1902 with its head office located in Mumbai. Citibank India has carved a niche for itself in the area of providing topnotch consumer finance lending services. In Delhi it has branches located in Punjabi Bagh, Vasant Vihar, South Extension, Nehru Place, Barakhamba Road, etc.

Deutsche Bank • It is a leading global investment bank and was established in India in the year 1980. Known as Deutsche Bank AG, the bank launched its retail banking service in India in October 2005, followed by the launch of credit card services in July 2006. Deutsche Bank India offers its clients a complete suite of high-end products and services to make them undergo an excellent banking experience. Currently, Deutsche Bank India employs more than 4,000 people and has branches in several cities of India, including New Delhi, Mumbai, Chennai and Kolkata.

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BFSI – company profiles … (4/4)HSBC Bank • Hongkong Shanghai Banking Corporation Limited (HSBC Bank), is a fully owned subsidiary of

the HSBC Group. The business of the bank ranges from private banking, personal finance, and commercial banking to corporate and investment banking. e bank provides a comprehensive range of services from private banking, commercial banking, personal financial services, corporate, investment banking and markets.

• The HSBC group has more than ,9000 offices in about 86 countries ranging from Asia-Pacific region, Europe, the Americas, Africa and the Middle-East. It has several branches in Delhi.

Standard Chartered • The Standard Chartered Bank is one of the leading banks and has its branches spread all over the world. A majority of the profit earned by the bank comes from its business operations related to wholesale and consumer Banking in Asia, Africa and Middle-East countries. In Delhi, it has branches located in Barakhamba Road, Connaught Place, Chanakyapuri and Karol Bagh.

BNP Paribas • Present across Europe through all its business lines, the group has four domestic retail banking markets in France, Italy, Belgium and Luxembourg. It has one of the largest international networks with operations in 83 countries and 202,300 employees, including 160,200 in Europe, 15,200 in North America and 10,200 in Asia. In Delhi, it has a branch located on Barakhamba Road.

Power Finance Corporation • PFC was set up in July 1986 as a Financial Institution dedicated to power sector financing and committed to the integrated development of the power and associated sectors. The corporation was notified as a Public Financial Institution in 1990 under Companies Act, 1956. It was registered as a non-banking finance company by the Reserve Bank of India and conferred the “navratna” status by the Government of India in June 2007. The company provides services such as project term oan, lease financing, direct discounting of bills, short term loans and consultancy services for various power projects in generation transmission and distribution sectors as well as for renovation and modernisation of existing power projects. The company is headquartered in New Delhi.

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Agri and processed-food sector

Key enabling organisation

MOFPI

NAFED

APEDA

AIFPA

Key companies

Mother Dairy

Kohinoor Foods Limited

Allanasons Limited

Hind Agro Industries

Shakti Bhog

Sterling Agro Industries Limited

• The city has a number of agriculture trading markets and food processing industry.

• It acts as a nodal location for exchange of goods with Northern parts of the country because of good connectivity and supporting infrastructure.

• There are nine principal markets and 12 different submarkets for trade of agricultural produce in Delhi.

• The main food trade markets are located in Narela, Azadpur, Tikri Kalan, Shahdara, BaghDiwar, Keshopur, Gazipur, Najafgarh and Mehrauli

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MOFPI • The Ministry of Food Processing Industries, set up in July 1988, is the central agency of the Central Government, responsible for developing a strong and vibrant food processing sector in the country with a view to creating increased job opportunities in rural areas, enabling farmers to reap benefit from modern technology, creating surplus for exports and stimulating demand for processed food. The MOFPI centre is in the Panchsheel Bhavan located on August Kranti marg.

NAFED • National Agricultural Cooperative Marketing Federation of India Limited (NAFED) was established in October 1958, and was registered under the Multi-state Cooperative Societies Act. NAFED was set up with the objective of promoting cooperative marketing of agricultural produce to benefit the farmers. Agricultural farmers are the main members of NAFED and they have participative authority. NAFED is headquartered in New Delhi.

APEDA • The Agricultural and Processed Food Products Export Development Authority (APEDA) was established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the parliament. APEDA is mandated with the responsibility of export promotion and development of the products such as fruits, vegetables and related products, meat and products, confectionery, dairy products, etc. The main office of APEDA is located near Sirifort auditorium in New Delhi.

AIFPA • All India Food Processors' Association (AIFPA) was established in 1943 by food processors in India, involved in the processing of fruits and vegetables, meat and fish, milk and milk products and also the manufacturers of biscuit and confectionery products, ready-to-serve beverage and ethnic delicacies, etc. Member industries account for a large percentage of the total production and exports of this industry. AIFPA has its main office located in Delhi.

Agri and processed food sector – enabling organisations

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Mother Dairy • Mother Dairy, Delhi, was set up in 1974 under the “Operation Flood Programme”. It is now a wholly owned company of the National Dairy Development Board (NDDB).

• Mother dairy markets and sells dairy products under the mother dairy brand such as liquid milk, curd, ice creams, cheese and butter, the “Dhara” range of edible oils and the “Safal” range of fresh fruits and vegetables, frozen vegetables and fruit juices, at the national level, through its sales and distribution networks for marketing food items.

• Mother Dairy milk has a market share of 66 per cent in the branded sector in Delhi where it sells 2.3 million liters of milk, daily and undertakes its marketing operations through around 14,000 retail outlets and 845 exclusive outlets of Mother Dairy. The plant is located in Patparganj.

Kohinoor Foods Limited • It offers an extensive range of products that caters to all kinds of consumers in different parts of the world - from basmati rice, ready-to-eat products, cook-in sauces and cooking pastes to spices, seasonings and frozen food . Presently, it has a strong market presence not only in India but also in the US, UK, Dubai, Canada, Japan, Australia, Singapore and other European countries. It has a office in Greater Kailash in New Delhi.

Allanasons Limited • Allanasons is India's largest exporter of processed food products and agro commodities. The company has been designated as a five star trading house by the Government of India. It is the world's largest producer and exporter of frozen halal boneless buffalo meat . It is also India's single largest exporter of frozen meat, processed/frozen fruit and vegetable products.

• The group has made substantial investments in creating world-class integrated food processing complexes. Its facilities have been certified for quality and product safety systems under ISO 9001:2000 and HACCP and ISO 14001 (Environment Management System), etc. The company has a office in Scindia House, Connaught Circus, New Delhi.

Agri and processed food sector – company profiles … (1/2)

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Hind Agro Industries • Hind Agro Industries Limited has Asia’s most modern abattoir-cum-meat processing plant at Aligarh in Uttar Pradesh. It is a joint venture of Hind Industries Limited, the Government of Uttar Pradesh and assisted by Government of India.

• The company has production capacity of 400 MT certified by APEDA and the company has a corporate office located in Okhla Industrial Area, New Delhi.

Shakti Bhog • Shakti Bhog Foods Limited (SBFL), incorporated in 1992, was pioneer in branding and packaging a daily use product such as wheat flour.

• It has now entered other daily use consumption products segments such as rice, salt and porridge.

• It has a production facility on GT-Karnal road, Delhi.

Sterling Agro Industries Limited • Sterling Agro Industries has been marketing high quality dairy products under its brand “NOVA”.

• It has set the standards of excellence in its entire range of dairy products, its brands, NOVA and A-ONE, are well known success stories.

• The office in Delhi is located at Pitampura.

Agri and processed food sector – company profiles … (2/2)

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Construction and real estate sector

• There are several infrastructure development companies located in the state.

• These companies are involved in construction of residential and commercial complexes, townships, power projects, hospitals, hotels, schools, roads and public utility infrastructure.

Key companies

DLF

Unitech

Parsavnath Developers

Ansal API

BL Kashyap

Jaypee Group

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DLF • DLF is primarily a real estate developer, rated as India's largest construction company in the sector. DLF has been in this industry for over 60 years now, and has developed celebrated homes, offices, malls, SEZs, hotels and infrastructure projects.

• DLF started off with initial venture in New Delhi (Qutub Enclave), and then proceeded to build the Gurgaon township. Now, it has a pan-India presence, with its properties being developed at almost all the Tier I and II cities of India. In Delhi, in the commercial sector DLF has built infrastructure in Vasant Kunj, Saket, Vasant Vihar. It has also developed some office spaces.

Unitech • The company started in 1974. Unitech has ventured into constructing power transmission lines, highways, theme parks, steel plants, residential dwellings, indoor stadiums and hotels.

• In Delhi, Unitech’s noteworthy achievements include the Rohini amusement park, which is spread over 62 acres in North-West Delhi. The project encompasses a shopping mall, “Metrowalk”, spread across 221,000 sq. ft, an adventure island, a world class amusement park and a water park.

Construction and real estate – company profiles … (1/3)

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Parsavanath Developers • Parsvnath Developers Limited is one of India’s leading real-estate developers, with pan India presence across 47 cities in 16 states. Parsvnath Developers Limited has a diversified portfolio which includes, integrated townships, group housing, commercial complexes, hotels, IT parks, build-operate-transfer (BOT) projects, SEZs and third-party contracting. The company has 98 ongoing projects and a total developable area of over 193 million square feet across all real state verticals.

• Parsvnath Developers Limited is an ISO 9001, 14001 and OHSAS 18001 certified company.

• It is developing “La Tropicana” near Civil Lines on Magazine Road in North Delhi. It is spread over 16.8 acres and offers premium luxury for the occupants. Over 78 per cent area is reserved for lawns, parks, landscaped greens and water bodies, the condominiums with penthouses and villas, etc. Parsvnath Paramount is a super luxury air-conditioned residential area planned at Subash Nagar near Rajouri Garden and built on the same lines as La Tropicana.

Ansal API • One of the oldest real estate developer companies in the NCR, Ansal API has ventured in to retail shopping malls, township development, hotels, clubs, facilities management, etc. Ansalshave completed several residential buildings like Gauri Sadan, Upasana at Hailey Road and Dhawan Deep on the Jantar Mantar road at Connaught Place in New Delhi.

• The company has also constructed the “Ansal Plaza” shopping mall in South Delhi, apart from several landmark high-rise commercial building such as the Statesman House, etc.

Construction and real estate – company profiles … (2/3)

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BL Kashyap • Established in 1978, it is one of the most respected construction and infrastructure development companies with a pan-India presence. The company’s service portfolio extends across the construction of factories and manufacturing facilities, IT campuses, commercial and residential complexes, malls and hotels. The corporate office is located on Mathura Road, New Delhi.

Jaypee • The Jaypee Group is a well diversified infrastructure and industrial conglomerate in India. It has diversified along various businesses such as engineering and construction, cement, private hydropower, hospitality, real estate development, expressways and highways.

• In Delhi, the group has constructed and operates luxury hotels, the Jaypee Vasant Continental and the Jaypee Siddharth.

Construction and real estate – company profiles … (3/3)

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IT and ITeS and other knowledge-based industries

• There are a number of software companies in Delhi. These organisations involved in the business of ERP, SQL server, Document management System, CRM, software development, ASP, Web Developer, Online Office automation, etc.

• E-commerce companies in Delhi offer services such as registrations of domain names, tele-billing, electronic signatures, web hosting, etc.

• The units are spread across the state. With Government focussing on the sector, the prospects are very bright for IT related businesses and other knowledge-based industries such as consulting.

• Well known companies established in Delhi are Softwell, MetaOption, MindExtendTechnologies Private Limited, Netsity Systems, NextGen IT Solutions Private Limited, One Earth Infotech, etc.

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Key industrial projects being executedProject Sector Promoter Investment

(US$ million) Location

New Delhi-Agra Expressway Road Project RoadwaysYamuna Expressway Industrial Development Authority

2,117.1Delhi-Agra

Delhi Metro Rail Project, Phase-II Railways Delhi Metro Rail Corporation 1,934.7 Delhi

Delhi International Airport (modernisation) Airport Delhi International Airport Private Limited 1,173.9 Delhi

Bawana Power Project (Pragati-III)Gas-based power

Pragati Power Corporation 1,129.3 Bawana

Safdarjung Hospital (New Delhi) Project –Redevelopment

HealthcareGovernment of India, Ministry of Health & Family Welfare

869.5AIIMS crossing, Delhi

Dayabasti Grade Separator Railway Project Railways Northern Railway 23.0 Delhi

Indoor Stadium (Delhi) Project (up-gradation)Tourism and recreation NDMC 22.6 Delhi

Institute of Medicine (Najafgarh) Project Hospitals DSIIDC 22.1 Najafgarh

Quarters (Dev Nagar) Project (rehabilitation) Real estate Central Public Works Department 22.3 Dev Nagar

Hospital (Delhi) Project Hospitals Lahore Hospitals Society 21.7 Delhi

Shivaji Stadium (Delhi) Project (modernisation)Tourism and recreation NDMC 21.7 Delhi

Source: projectstoday.com

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Major industrial projects being planningProject Sector Promoter Investment

(US$ million) Location

Elevated Ring Road (Noida) Project* Roadways Noida Toll Bridge Co Limited 572.8 Delhi

Integrated rail-cum-bus transit (IRBT) system

Railways Government of India, Ministry of Railways 486.7

Delhi-Gurgaon-Ghaziabad

Jamnagar-Patiala Pipeline Project Gas pipeline Reliance Gas Transportation Infrastructure Limited 356.5

Delhi-Haryana-Uttar Pradesh-Punjab-Rajasthan-Gujarat

Multilevel underground carpark(Delhi) Project

Car parks Municipal Corporation of Delhi 22.6 Delhi

Hospital (Siras Pur) Project Hospitals Government of Delhi 21.7 Siras Pur

Hospital (Madi Pur) Project Hospitals Government of Delhi 21.7 Madi Pur

Hospital (Jwala Puri) Project Hospitals Government of Delhi 21.7Jwala Puri

Multilevel Car Parking (Delhi) Car parks DMRC 21.7 Delhi

Police Line Complex (Delhi) Civil construction Public Works Department, Delhi 21.7 Delhi

Indraprastha Institute of Technology (Delhi)

Community Services Indraprastha Institute of Information Technology 25 Delhi

Flyover (Pankha-Dabri Morcrossing) Project

Roadways Municipal Corporation Delhi 23.9 Delhi

Source: projectstoday.com

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Contents

Advantage Delhi

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Delhi

DELHI April 2010

67

Key Investment Promotion Offices

Key agency Description

Delhi Financial Corporation This organisation provides financial assistance for industrial and commercial activities in the state.

Delhi State Industrial Development Corporation Limited (DSIDC)

It is involved in providing infrastructure and marketing facilities to industries.

Delhi Khadi and Village Industries Board It offers financial assistance to specific type of small scale industries (khadi and village industries).

The Department of Industries, Government of NCT Delhi This organisation serves as the nodal agency to plan, promote and develop industries in the state.

State Level Export Promotion Scheme (SLEPC) has been constituted to draw export policy and action plan, and approve infrastructure projects for financial assistance under Assistance to States for Developing Export Infrastructure and Allied activities (ASIDE) scheme of Central Government. DSIIDC is responsible for the distribution of funds to the developer agency under the ASIDE scheme upon approval of a project.

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Approvals andclearances required List of procedures Departments Estimated time

Registration for starting a new business

• Obtain director identification number (DIN) online from the Ministry of Corporate Affairs portal (national).

1 day

• Obtain digital signature certificate online from private agency authorized by the Ministry of Corporate Affairs (national).

• Reserve the company name online with the Registrar of Companies (ROC) (national).

• Stamp the company documents at the State Treasury (state).

Authorized agent

3 days2 days1 day

Get the Certificate of Incorporation from the Registrar of Companies, Ministry of Corporate Affairs (national) ROC 5 days

Key approvals required … (1/5)

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Approvals andclearances required List of procedures Departments Estimated time

Registration for starting a new business

• Make a seal (private).

• Obtain a Permanent Account Number (PAN) from an authorized franchise or agent.

• Obtain a Tax Account Number (TAN) for income taxes deducted at the source from an authorized franchise or agent.

Authorized agent

Authorized agent 1 day12 days12days

• Register for Value-Added Tax (VAT) at the Commercial Tax Office (state).

• Register with Employees' Provident Fund Organization (national).

• Register for medical insurance at the regional office of the Employees State Insurance Corporation (national).

Central and State excise

12 days9 days13 days15 days

Key approvals required … (2/5)

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Approvals andclearances required List of procedures Departments Estimated

time

Obtaining construction permit

• Obtain no due tax certificate from the House Tax Department (municipal).

• Obtain No objection certificate regarding land use as per master plan/zonal plan (municipal).

• Notarize the affidavit/undertaking (private sector).

House Tax Department 18 days

• Apply for building permit at the Municipal Corporation of Delhi (MCD; municipal).

• Receive inspection of the site by the Municipal Corporation of Delhi (municipal).

• Obtain building permit from the Commissioner of the Municipal Corporation of Delhi (municipal).

MCD, Delhi 67 Days

• Hire an independent electricity contractor and obtain load approval (private).

• Apply for permanent electricity connection with the BSES (private).

• Receive on-site inspection by BSES (private).

BSES 3 days

Key approvals required … (3/5)

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Approvals andclearances required List of procedures Departments Estimated

time

Obtaining construction permit

• Request and receive inspection by an engineer from the Municipal Corporation of Delhi at the plinth level (municipal).

• File completion certificate and apply for occupancy permit at the Municipal Corporation of Delhi (municipal).

• Receive final inspection of the construction by the Municipal Corporation of Delhi (municipal).

• Obtain occupancy permit from the Municipal Corporation of Delhi (municipal).

MCD, Delhi 33 days

• Apply for permanent water and sewerage connections to Delhi JalBoard (municipal).

• Apply for permanent phone connection at Bharat Sanchar Nigam Limited (national).

• Receive an initial on-site inspection from Delhi Jal Board (municipal).

• Obtain permanent water and sewerage connection from the Delhi Jal Board (with inspection) (municipal), electricity and phone connection.

Respective authorities 63 days

Key approvals required … (4/5)

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Approvals andclearances required List of procedures Estimated time

Registering property in New Delhi

Check for encumbrances at the office of the sub-registrar of Assurances (state). 3 days

Pay the stamp duty at the State Treasury and obtain stamp paper (state). 2 days

• The final sale deed is prepared by the buyer or his lawyer (private).

• Execute and register the final sale deed at the office of sub-registrar (state).

11 days

Apply to the Circle Revenue Office for mutation of the property title (state). 40 days

Key approvals required … (5/5)

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Cost of doing business in Delhi

Parameter Cost estimate

Land price (per sq ft)(Commercial land for office use or institutional land) US$ 65 to US$ 543

Labour (per man-year) US$ 1,206 to US$1,333

Lease rent (per sq ft) US 478.2 cents to US 543.4 cents

Electricity (per kWh)Commercial: US cents12.95 to US 13.52 centsIndustrial: US 11.8 cents to US 12.1cents

Residential rent (per sq ft per month) US 16.8 cents to US 68.8 cents

Five-star hotel room (per night) US$ 152.1 to US$ 217.1

Water industrial (per 1,000 litres) US 21.74 cents to US 217.39 cents

Sources: Asia Pacific Property Digest, 3rd Quarter, 2009, Jones Lang LaSalle, Delhi Government websites, industry sources

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Single-window approval mechanism

The Delhi government has proposed setting-up of a “Business Facilitation Council” (BFC) to facilitate single-window clearances from various departments for establishing industrial enterprises in a time-bound manner.

• The BFC will be headed by the Secretary and Commissioner (Industries) and the Joint Commissioner (Industries) as its member secretary. It will be operated through the BFC cell headed by the Joint Commissioner of Industries.

• The Joint Commissioner of Industries will ensure that all the applications received by the BFC cell are processed in a timely manner. Wherever bottlenecks are noticed, he/she will bring them to the notice of the BFC for remedial action.

• Senior functionaries of departments concerned such as the Municipal Corporation of Delhi, Delhi Pollution Control Committee, Labour Department and Drug Controller will be the nodal officers. These nodal officers shall ensure that the applications received by their departments are processed and disposed of without any undue delay.

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Contact details

Key agency Contact information

Delhi Financial Corporation (DFC)

Plot No 37 and 38, Institutional AreaPankha Road, D-Block JanakpuriDelhi - 110 058Phone: 91-11-2852 5035

Delhi State Industrial Development Corporation Limited (DSIIDC)

N-36, Bombay Life buildingConnaught Circus, New DelhiPhone: 91-11-2331 1590

Delhi Khadi and Village Industries BoardCanning Lane, KG MargNew DelhiPhone: 91-11 2378 2336

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Annexure

Year INR equivalent of one US$

2000 46.60

2001 48.30

2002 48.04

2003 45.60

2004 43.70

2005 45.20

2006 45.00

2007 42.00

2008 40.20

2009 46.00

Exchange rates

Average for the year

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DELHI April 2010

India Brand Equity Foundation (“IBEF”) engagedICRA Management Consulting Services Limited (IMaCS) to prepare this presentation and the same has been prepared by IMaCS in consultation with IBEF.

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