Page 32 of 58 Road An ambitious project of providing four-lane highway between Hazaribagh and Baharagoda (Jamshedpur) measuring 333 km is under construction. A detailed project report for construction of High Specification Road between Ranchi and Sahebganj via Govindpur, Jamtara and Dumka is being prepared, which will provide gateway to Assam and North East. Similarly Ranchi - Daltonganj - Garhwa road shall also be strengthened. Special attention shall be paid to improve and upgrade the existing road network and providing new road linkages / by-passes with bridges over rivers to facilitate quick and efficient movement of raw materials and finished goods. The Government shall encourage private sector participation on Build-Operate-Transfer (BOT) concept for building and maintenance of roads and bridges. With respect to the bridges upon the National Highways, the State Government shall undertake steps to involve private sector participation in consultation with the Government of India. The State government would also allow commercial use of specified road side land in order to improve the economic viability of such road / bridge projects as per the approval plan. The Government shall plan for and in the long run provide expressways along the main high-density corridors across the State. The government shall also encourage private sector participation in the management of inter-State and intra-State bus terminuses across the State. The State Highways Authority of Jharkhand will build 1,000 km of new roads and would strengthen 5,000 km in the next couple of years. Jharkhand government said it would invest US $ 1.11 billion (INR 5,000 crore) over the couple of years on the road development projects. (Source: http://constructionupdate.com/CMS/Newsletter/NewsFiles/47356.html)

The Asian Development Bank (ADB) will provide the Jharkhand government a US $200 million (INR 900 crore) loan for building a 3,121 km-long road in the State. The road project will start from Govindpur via Jamtara and Dumka Barhet to Sahebganj. It is likely to be completed by June 2014. (Source: http://www.siasat.com/english/news/rs900-crore-adb-loan-jharkhand-road-project)

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IL&FS Transportation Netwroks will renovate the 68.7 km long Chaibasa-Kandra-Chowka road in Jharkhand for an estimated cost of US $ 96.17 million (INR 433 crore). The company’s subsidiary, Jharkhand Road Project Implementation Company has inked an agreement with the Jharkhand government for carrying out the job in two-and-a-half years time. The project, to be executed on Built-Operate-Transfer (BOT) basis, includes two laning of the road with paved shoulder.The project is on annuity basis with a concession period of 17.5 years..The company shall receive a semi-annual annuity of US $ 9.14 million (INR 41.13 crore).

(Source : http://articles.economictimes.indiatimes.com/2011-06-07/news/29629957_1_ilfs-transportation-networks-jharkhand-annuity-basis)

Railways The State has extensive and well-developed railway system providing vital links to mining industry and tourism with important cities and ports of the country. The State has extensive goods handling facilities available at Ranchi, Bokaro, Dhanbad and Jamshedpur (Tata Nagar). In addition, ore loading facilities are available at Kiriburu, Lohardaga and all the coal mines of Central Coalfields Ltd.

Railway Projects (Ongoing projects)

Koderma - Hazaribagh – Ranchi The estimated cost of the project US $ 399.79 million (INR 1,800 crore) and it will be completed by 2014

(Source: http://www.telegraphindia.com/1110119/jsp/jharkhand/story_13462613.jsp)

Koderma – Giridih The estimated cost of the project is US $ 116.61 million ( INR 525 crore) and shall be completed by 2012.

(Source: http://www.telegraphindia.com/1090319/jsp/jharkhand/story_10683708.jsp)

Deoghar - Dumka – Rampurhat - The project is likely to be completed by 2012.

(Source: http://www.telegraphindia.com/1101007/jsp/jharkhand/story_13027223.jsp)

Page 34 of 58 Air Links.

Air link is vital to attract investment and to promote tourism in the State. There is vast untapped potential in this sector of public transport.

Ranchi, the State capital is connected with Delhi, Patna, and Mumbai by regular air services. Efforts are being made to provide connectivity with Kolkata and other major national and commercial cities. To upgrade Ranchi airport as international airport, the State government shall extend all assistance to International Airport Authority of India (IAAI).

Major towns in the State, such as, Jamshedpur, Dhanbad, Bokaro, Giridih, Deoghar, Hazaribagh, Daltonganj, Noamundi have airstrips. The State government would take steps to strengthen and improve these airstrips along with proper fencing and establishing terminal buildings. The airstrip at Dumka would also be upgraded. These airstrips shall be allowed to be used by private air taxi / cargo service operators. Concessional landing facilities for a period of one year from the date of starting such air taxi / cargo service shall be provided. Re-fueling facilities shall also be made available.

Air Cargo Complex

The State government has taken steps to set up Air Cargo Complex at Ranchi. This would provide boost to export oriented industries, specifically, those operating in the area of high value and perishable commodities. Floriculture and horticulture based industries can take advantage of this facility.

Proximity to Sea Links. Jharkhand is a land locked State. Efforts are being made to provide inland water transport facilities by making Suvernrekha river navigable. In addition, navigational infrastructure at Sahebganj and Rajmahal is also contemplated to be provided on river Ganges to facilitate seaport access. The State government would strive to possess a dedicated berth at either Haldia Port or Paradeep Port to facilitate imports and exports.

Page 35 of 58 Why Invest in Jharkhand Availability of Minerals

Jharkhand has large deposits of minerals. 40 percent of the total minerals of the country are available in the State. The State is the sole producer of cooking coal, uranium and pyrite. It ranks first in the production of coal, mica, kyanite and copper in India. The geological exploration and exploitation of gold, silver, base metals precious stones etc. are the potential areas of futures.

Advantages due to well establish Industrial base.

Jharkhand has a well-established Industrial base of long-standing comprising reputed business houses like Tatas. The Tata have operated here for nearly 100 years. Their socio-economic presence has added value to the work culture in this belt.

Industrious Work Force

• No militant trade unionism • Man days lost due to Industrial strife among the lowest in India • Shift working very well accepted regardless of the weather or season • A culture of one Union one company

Advantage of location

Jharkhand is located close to Kolkata, Haldia and Paradeep Ports. Ranchi, the capital, is well connected by air, rail and road. Industrial towns have excellent rail and road connectivity with major market places in the country. Jharkhand is an ideal location for export-oriented units interested in emerging markets of South East Asia, because of freight advantage.

Several measures are being taken to channelize exports. An Inland container depot has been set up at Jamshedpur.

Further, there is logistical advantage in catering to markets within and adjoining States of West Bengal, Orissa, Bihar and Chhattisgarh, whose combined population is 25 percent of the country's population.

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Numerous Supporting Small Scales Industries

Due to the presence of several world-class industries since past several years, numerous supporting small scale industries (SSI) have emerged and are capable of delivering world class quality products at competitive prices. These SSIs cover various sectors, included, but not limited to the following:

• Advanced Heat Treatment • World class Forgings • Metal Presses catering to Export Market • Precision Castings • Rubber and Plastic components • Sophisticated machine shops • Auto Ancillaries • Steel Plant recycling/downstream industries

Research and Development Facilities

Top most metallurgical research institutions in the State:

National Metallurgical Laboratory (NML) (Jamshedpur)

Research and developments at National Metallurgical Laboratory focuses on minerals, metals and materials. Through an arsenal of State of the art facilities and infrastructure, and on the strength of its expertise, NML has evolved into a premier Indian organization in the Stated areas. It has to its credit hundreds of mineral beneficiation protocols, numerous strategic and substitute alloy developments, several industrial solutions especially in remaining life assessment, material selection and property enhancement.

NML has the largest creep testing facility in India and one of the largest in Asia. Its materials evaluation and characterization facilities compare with the best in the world. In advanced materials development, NML has strong presence in magnetic materials, rapidly solidified alloys, surface coatings, metallic foams, and many others. Advanced materials processing and post-processing carried out include Mechanochemical activation, Semi-solid processing, Biomimicry, Thermo-mechanical treatments, High Temperature Synthesis, Advanced Joining, Grain boundary engineering, High strain rate forming, and several other techniques.

Page 37 of 58 Research and Development at SAIL (Steel Authority of India) The research and development wing of SAIL provide the below mentioned assistance:

• Know-how transfer of technologies developed by RDCIS • Consultancy services / Contract research • Specialized testing services • Training

Tata Steel Research and Development The Research and Development and Scientific Services Division supports the Tata Steel Group by developing new processes and products to create competitive advantages, better environmental performance and improved sustainability. Its three departments, Research and Development, Scientific Services and Refractory Technology Group, also offer numerous services to improve the cost, quality and environmental performance of the Company The Division consists of following units

• Raw Materials and Coke Research Group • Iron and Ferro Alloys Research Group • Steel Making Research Group • Products Research Group • Coated Products Research Group • Materials Characterization and Joining Research Group • Materials Modeling and Product Design Research Group • Refractory Technology Group • Scientific Services

Manpower Availability

Jharkhand has an excellent man-power base due to the presence of reputed technical institutions in the State, viz. XLRI at Jamshedpur, Indian Institute of Coal Management at Ranchi, Indian School of Mines at Dhanbad, Birla Institute of Technology at Ranchi, National Institute of Technology at Jamshedpur, BIT at Sindri, National Institute of Foundry and Forge Technology at Ranchi, Management Development Centres and Technical Training. Centres set up by large business houses, number of Polytechnics, and numerous Computers and other skill enriching training setups. Further new private engineering colleges have been sanctioned.

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Opportunity for Investment in Jharkhand

Identification of Thrust Areas

The State of Jharkhand is blessed with huge natural resources such as minerals, forests, water resources, energy sources, fertile land, etc. which can place the State amongst one of the top most prosperous and developed States of the country.

Besides, the State is also gifted with relatively moderate climate, good rainfall, good rail and road communication, technical educational facilities, research laboratories, management institutes, etc.

With a view to inculcate rapid growth in industrial sector, such industries which aim to utilities natural resources available in Jharkhand and which can generate employment for local inhabitants are being classified as thrust area.

It is also intended to give boost to those industries, which propose to add value to the minerals, forest produce and agro based products available in the State. Important criteria for determining suitability of thrust industries for accelerated development in the States are:

• Availability of raw material • Market • Manpower resources • Linkage with larger units • Sustainability aspects

The following industries have been identified as thrust areas for focused industrial development in the State:

• Mining and minerals based industries. • Agro based industries. • Industries based on medicinal and aromatic plants. • Sericulture / Tasar. • Forest based industries. • Engineering, auto component, iron and steel, steel based down stream industries. • Chemical based industries. • Power generating and allied industries. • Electronic and computers and IT based industries.

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• Industries based on non-conventional energy. • Livestock based industries. • Industries based on recycling of waste, environment friendly raw material and

process. • Super specialty health service. • Telecommunication and related products. • Food processing industries. • Tourism. • Cold storage. • Pharmaceuticals / drug based industries. • Leather based industries. • Technical education. • Ceramics. • Sports goods. • Packaging. • Metallurgical industries. • Textile, hosiery, knitwear. • Handicraft / Handloom based industries. • Natural Gas based industries. • Housing Fixtures related industries.

Opportunity in Power Sector

The availability of coal in abundance and proximity makes Jharkhand an ideal State for setting up thermal power plants. The present total installed power capacity is inadequate to meet the power demand. In view of future requirements many power generating companies both government and non-government setting up different power plants. Due to several new investments in manufacturing setups coming up, the demand for power both within the State and the nearby States will increase manifold. There is also scope for setting up hydel power plants and many hydel power generation sites have been identified for this purpose.

Page 40 of 58 Background Scenario The development of electric power generation and supply some how could not receive due attention and priorities in the erstwhile integrated State of Bihar. In spite of being the second most populous and being endowed with all natural resources, the State had the distinction of having the least capacity of power generation. However, after reorganization of the State into two smaller States, Bihar and Jharkhand - the Land of Forests, the Government of Jharkhand has decided and is determined to take quantum jumps in generating capacity addition from its present figure. The State of Jharkhand has taken up this as a challenging opportunity and scope to develop. The Aim and Objective

The State of Jharkhand has also aimed to raise its present level of energy generation. To fall in line with the planning and proposals of Government of India for power development, the State aspires to enhance its generating capacity by more than double by 11th Plan i.e. 2012, the year by which power-on-demand to the people is committed. There are many prospective power projects, which nave been sanctioned and cleared from the respective agencies and also other potential areas where private entrepreneurs could consider investment.

Initiatives taken by the State

In a short span of its existence, the Government of Jharkhand has taken the following initiatives in the direction of power development:

State's industrial policy has been formulated to promote and enhance the industrial base and thus increase in demand for electric power.

Jharkhand State Electricity Board has been established. The Board's organizational set up is planned to be on profit center concept with due accountability and authority.

• The State government has signed Memorandum of Understanding with Government of India as a token of its commit to the reforms in the power sector as formulated by the Union Government, Department of power, on 30.04.2001.

• Decision has been taken to open the State power sector for private investment and extend all due facilitation and incentive to the investors.

• The distribution system is planed for privatization at appropriate time.

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• Rural electrification has been accorded top priority. All the 32,000 villages are to be electrified. Present electrification level is hardly 15 percent. This will increase the power demand and also scope for power generation through small power schemes like small hydro, biomass, etc.

• The work on renovation and modernization of existing power generating station as well as transmission and distribution system has already commenced in line with the guidelines issued by Government of India under Accelerated Power Development Reform Programme (APDRP) and other schemes of national and International Financial Institutions

The Strategy The strategy of the government of the State government and Jharkhand State Electricity Board is not to leave any stone unturned, to develop the power sector of the State i.e.

• To go for power sector reforms. • Compatible development of power transmission and distribution network in the

State and at the same time putting more thrust on generating capacity. • Harnessing renewable energy source i.e.

a. Biomass power generation. b. Micro / Mini / Small hydropower schemes. c. Solar power for rural and also strategy location in urban areas. d. Solid waste utilization and management.

• In conventional power generating sector, install pit - head power stations to reduced menace of coal ash, etc. of its own as well as welcome entrepreneurs to invest in the sector.

Opportunity in mineral based industries Encouraging factors for investors

• Simplified procedures for granting mining leases. • Joint venture projects with Jharkhand State Mineral Development Corporation

encouraged. • Expeditious clearance of mining lease applications and project report.

Page 42 of 58 Business opportunities in mineral based industries

• Develop iron ore as a business (export potential). • Enhance steel production. • Sponge iron plant. • Cement plant in view of infrastructure developments. • Potential to use slag from steel plants. • Graphite electrodes and graphite powder. • Granite - export potential. • Quartzite - Road Metal and Glass / Crystal purposes. • Chemical and Fertilizer - steel plant generated coal tar and phosphate based

fertilizers. • Bleaching powder, calcium carbide and lime related chemicals. • Mica - ground mica, mica bricks and electrical appliances.

Opportunity in Infrastructure Development

Opportunities exist in the following areas:

Construction Activities

• Construction of new roads and upgradation of existing roads and highways. • Construction of new airports and expansion/ upgradation of existing airports. • Construction of new township for the State Capital. • Construction of Air Cargo Complex at Ranchi.

Development of Industrial Parks and Zones

• Export Promotion Industrial Park at Dhanbad. • Development of SEZs and EPZs • SEZs along -

Barhi - Ranchi National Highway Jamshedpur - Ranchi National Highway Adityapur - Kandra - Chowka State Highway Chandil - Chakuliya - Bahragora National Highwa

Page 43 of 58 Development of 3-tier Growth Centres

• Mega Growth Centres at Barhi and Hazaribagh • Several Mini Growth Centres to boost specialized activities:

o Biotech and Herbs Park o Food Processing Park at Ranchi and Dumka o Science City at Bokaro o Plastic Park at Koderma o Chemical Park o Tasar/ Silk Park at Chaibasa and Godda o STP at Ranchi and Jamshedpur o Electronics Park at Namkum/ Tatisilwai

• Micro Growth Centres at Block level to boost Village based Industries.

Opportunity in IT and Telecom Infrastructure There is great potential for setting up IT and Telecom Infrastructure with Statewide spread of fiber optics, satellite communication and wireless networks. State's Major IT Targets:

• To enhance the IT export from Jharkhand in the coming years. • Reach computer networks down to block level offices and bring village level e-

governance.

Opportunity in Auto Components Sector Jharkhand is an ideal hub for auto components manufacturing; advantages like abundant availability of raw materials like iron ore, coal and bauxite and its location advantage make it suitable for the auto mobile and auto components industry. As the State houses some important steel plants and mines, there is a distinct advantage with respect to freight in sourcing cold rolled sheets, auto grade steel plants are being set up Jharkhand’s automotive industry produces a wide range of products from simple nuts and bolts to complex items like shafts, radiators and axles.

In order to promote the auto and auto components industry, the State government selected the Adityapur Industrial Area for setting up a product–specific special economic zone (SEZ) – the Adityapur Auto Cluster

Page 44 of 58 There are close to 1,000 small, medium and large auto component manufacturers in the SEZ that supply components to the Indian automobile company. The purpose of the Auto Cluster is to develop infrastructure for the companies inside the SEZ like:

• A Hazardous Waste Management Facility. • Information and Communications Technology (ICT). • Infrastructure Design support required for computer aided manufacturing. • Hi –Tech Laboratory. • Business needs for meeting clients. • Common Effluent Treatment Plant.

Opportunity in Agro and Food Processing One of the strategies for the development of Jharkhand is to ensure sustainable agricultural and rural development Water, rich soil and favourable agro – climatic conditions create ideal conditions for promoting a wide range of agricultural activities, particularly horticulture; there is tremendous scope for boosting production of a range of farm products as with the rise in incomes, the increased level of demand for processed fruits and vegetables is on the increase. This creates conducive conditions for investment in the Agri – business and food processing sector, the encouraging feature of vegetable production has been the high productivity levels which are either at par with the national level or even better as far as few crops are concerned, special emphasis is being laid on technological aspects, ensuring new, cheap and timely availability of inputs. The State government's pro – farm policies currently help boost cultivation of fruits such as mango on a large – scale, about 30,000 hectares have been added to the cultivation of fruits, which assures a huge production base. The State offers hassle – free, single–window clearances with the added advantage of tax incentives and concessions for the sector. The demand for milk, dairy products, meat and poultry products are expanding, given the food preferences of the tribal people of the State. The supply gap can be filled by entrepreneurial initiatives in setting up processing. Horticultural development has a vast potential not only in terms of meeting the local requirements of fruits, vegetables, flowers, medicinal and aromatic plants but also in terms of exploiting the opportunities for exports.

Page 45 of 58 The specific focus area of the Government is horticulture, production and processing of fruits and vegetables to service the vast hinterland is seen holding immense potential; Floriculture too is an emerging business opportunity The other agro industries include cattle feed production, fibre–based industries such as jute, hemp, sisal, silk, paper and horticulture–based industries like medicinal and aromatic plants production. Areas of Opportunities

• Warehousing • Producing juices, pulps, extracts of fruits and vegetables and canned fruits and

vegetables.

• Brined, picked and pasteurized vegetables.

• A US $ 28 million Mega Food Park project would be built and would be situated on the outskirts of the capital, Ranchi. The park will generate 7,000 direct employment opportunities and help to create 30,000 indirect employment opportunities. The park will have a central processing centre, supported by six primary processing centre in the districts, each of which will have between two to five collection centres and use 21 mobile collection vans. The food park will process around 1,60,000 tonnes of fruit, vegetables and milk and contribute to around US $ 133.26 million (INR 600 crore).

• There is an Agriculture Export Zone (AEZ) in Ranchi dedicated to vegetables.

AEZs look at a particular produce / product located in an area for the purpose of developing and sourcing raw materials, processing / packaging and exports. The main uses of AEZs are value addition to basic agricultural produce, bringing down cost of production through economy of scale, better price realization for agricultural produce, improvement in product quality and packaging and the promotion of trade.

• Contract farming involving agreement between companies and farmers directly

Page 46 of 58 Food processing industry is another sector where many have already invested and some are planning to invest. Multi-brand food processing unit set up in Jharkhand. Food processing factory has come up in the industrial area of Tatisilwai, near the State capital. Swastik Group's Swastik Fruits and Products Limited and Swastik Aqua Private Ltd had jointly promoted the unit. The two promoting companies had invested around US $ 4.44 million (INR 20 crore) to manufacture various food products like mango juice to be sold under the Frooti brand, apple juice to be sold under the Appy Fizz brand and mineral water to be sold under the Bailey brand from the unit. (Source http://www.business-standard.com/india/news/multi-brand-food-processing-unit-setin-jharkhand/241392/&) Nikasu plans food processing unit at Jharkhand Kochi-based ready-to-eat manufacturer and exporter, Nikasu Frozen Foods, has earmarked a Rs 30-crore investment to set up food processing unit in Jharkhand. The unit would be set up in the next two-years. (Source http://www.fnbnews.com/article/detnewswide.asp?articleid=27321&sectionid=1) Tourism Besides industries and agriculture, tourism in Jharkhand also forms an indelible part of the economy of the State. With the coming of the foreign tourists in India, Jharkhand tourism has taken a big stride forward. Jharkhand is blessed with an exotic landscape. The rolling hills, beautiful plateaus, and the sparkling rivers have largely contributed towards tourism. Besides, the national parks, wildlife sanctuaries, holy shrines and museums largely attracts tourists to come to Jharkhand. Some of the major tourist spots in Jharkhand that play a vital role in the tourism industry of Jharkhand are:

• Netarhat – Netarhat is a beautiful hill station situated about 156 km from Ranchi. It is renowned for its sunset. Tourists from across the world come to enjoy the blissful ambiance of the territory.

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• Betla National Park – Betla National Park forms a pivot of tourism in Jharkhand. The national park spreads over an area of 250 sq. km, contains a variety of animals such as tiger, lion, panther, deer, elephants and cheetal.

• Baidyanath Dham – Baidyanath Dham is one of the major religious sites in Jharkhand. Baidyanath Dham is the abode of Lord Shiva. Tourists from across the world come to this shrine to pay their reverence to Lord Shiva.

It is noteworthy in this context that Kanke Dam, Ranchi Hill, Tagore Hill, Hatia Dam, Dasham Falls, Jagannath mandir, Jonah Falls, Hoondru waterfalls, etc. are the projects under the tourism industry of Jharkhand that heavily contributes towards the economy of the State. Moreover, we also come across a number of hotels running under Jharkhand Tourism Development Corporation that works towards enhancing the economy of Jharkhand Opportunity in other sectors Sericulture in Jharkhand

Silk is a fine strand of fiber that is a solidified secretion produced by certain silk worms to encase themselves in the form of cocoons.

The possibility of making cloth from the fiber that the silkworm spins into a cocoon was first discovered in China about 2600 B.C. Since then, silk worms have been bred for the sole purpose of producing raw silk.

Salient Features of improved silkworm rearing

• Rearing with Disease Free Laying (DFLs) • Early stage worms are reared in specially maintained gardens within rearing fields

o Plants are regularly pruned o Plants receive higher dose of manures o Leaves are rich in nutrients

• Rearing of silk worm in the initial 15 days is carried out under nylon nets- o Offers complete protection against pest predators o Protects the tiny worms from strong winds, direct hitting by rain drops o Saves labour in watch and ward

Page 48 of 58 Expansion Strategies

• To reach out to places where people have been traditionally involved in Tasar sericulture and spread grain age activity so as to make disease free laying (DFLs) available to the Seri culturists in potential areas.

• Organize finances for setting up new grainages. Establish linkages for ensuring basic seeds for the grainages.

• Seed crop rearing activity. This activity involves building of seed cocoon stock through multiplication of basic seeds in one or two rearing cycles prior to the commercial crop rearing.

• While the cocoons harvested in the commercial crop rearing is utilized for yarn production, the harvest of the seed crop cycles (seed cocoons) are utilized in the grainages for the production of DFLs.

• Organize training to impart required technological skills among seed rearers. • Campaigns to improve productivity of commercial crop rearing. The crop taken up

through the final life cycle of tasar insect in a year is considered as the commercial crop. The cocoons harvested in the commercial crop contain higher amount of extractable silk filaments.

• Silk in Jharkhand (Mainly Tasar)

Tropical Tasar silk production originated in the Chhotanagpur plateau of India. Tasar culture is a way of life for the tribal and forest dwellers, particularly in Central and Eastern India.

Tasar culture is a backbone for Tribal development, and the Government of India, through the Central Silk Board and different State Governments have initiated several developmental and welfare measures for the tribal welfare through it.

Jharkhand, much like Chhattisgarh and Uttaranchal, is endowed with adequate forest cover.

These forests are home to two species of trees -

• Arjuna (Terminalia Arjuna) and • Asan (Terminalia Tomentosa)

Which is breeding ground for the moth, which produces the cocoon from which Tasar yarn is reeled.

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Jharkhand's forest department is also planning to encourage planting of Arjuna trees in place of the traditional Acacia or Eucalyptus trees. On its part, the CTR and TI (Central Tasar Research and Training Institute), is planning to use tissue-culture methods to identify and develop high yielding varieties of Arjuna. Action Plan for development of Silk Industry

• Increase cultivation of host plants • Promotion of a forestation by setting up nurseries. • Promote proper silkworm rearing techniques amongst Seri culturists. • Production of Disease Free Laying in large quantities. • Increase post-cocoon activities. • Better arrangements for sale of cocoons through local markets. • Training on Thread reeling and fabric weaving. • Using the trainees for reeling and weaving of cocoons available at the centers. • Sale of prepared fabric. • Organize bank supports for self-employment of trained beneficiaries. • Prepare statistics of silk thread and fabric produced in the region.

As per the State Industrial Policy, numerous benefits / incentives provided to entrepreneurs involved in post-cocoon activities like yarn and fabric production.

• Employment generation based incentives. • Reduced stamp duty and registration on purchase / acquisition of land and

building. • Feasibility study - Project report cost reimbursement subsidy. • Capital investment incentive. • Pollution control equipment subsidy. • Interest subsidy. • Commercial tax benefits

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Rural Industries This sector has immense export potential which needs to be exploited to earn foreign exchange. To give thrust, the government aims to provide benefits in the following areas: Handloom

• Provides employment to weavers in the State. • Numerous incentives to handloom weavers given under Deendayal Hastkargha

Protsahan Yojana. These include: Providing looms and accessories Product development Infrastructure support Institutional support Training to weavers Supply of equipment Marketing support

Handicrafts

• Measures to Boost growth: Specialized training Design development Raw material support Marketing assistance Improved tools Technological improvement Bank finance

• Boost manufacture of sophisticated and intricate handicrafts in cane and bamboo work, woodcarving, stoneware, brassware, lac based handicrafts, terracotta, etc.

• Provide a marketing platform for rural artisans through Handicraft village and Craft Fairs (Mela).

Page 51 of 58 Khadi and Village Industry

• High priority accorded to this sector so as to promote a self-reliant rural economy. • Government setting up a Khadi Village Industries Board to provide training,

financing and marketing support • Government setting up a Bamboo Research Institute.

Forest based Industry

• Various forest produce available in the State is mahua seed, sal seed, shellac, bamboo, kendu leaf, harre, bahera, etc.

• The State government plans to encourage research and development to increase use of such forest produce so as to boost this sector.

Industries based on Medicinal and Aromatic plants

• With the availability of most of the medicinal plants and herbs, good scope for investment is there in this area. 22 out of 26 medicinal plants and herbs are available in Jharkhand.

Exports

In the age of liberalization and globalization of the economy, the importance of exports for economic development cannot be ignored. Various measures are being proposed to boost export of various commodities from the State, which include flowers, metals, silk, handicrafts, automobiles, computer hardware etc. The Government of Jharkhand has constituted “State Level Export Promotion Council", headed by the Chief Secretary with wide representation from Industry and Commerce; the council would direct, promote and ensure monitoring of export related activities in the State The Government has taken steps to set up an Air Cargo Complex at Ranchi, which would give the desired impetus to the export of flowers, vegetables and other relevant commodities.

Page 52 of 58 In order to realize maximum potential of exports for Value Added and manufactured goods from the State, the government has taken steps to establish a Container Depot and an Inland Container Depot (ICD) at Jamshedpur An Export Promotion Industrial Park (EPIP) is proposed to be set up at Dhanbad The State Government has formulated an ambitious plan to set up Export Oriented Knowledge Parks

Special Economic Zones (SEZs) are delineated enclaves treated as foreign territory for the purpose of industrial, service and trade operations with relaxation in customs duties and a more liberal regime with respect to levies and foreign investments

Following would be the facilities offered at the SEZ:

• Single Window Clearance: The Special Economic Zone will provide for a Single Window Clearance for approvals and clearance for investors.

• Self–certification will be enabled for all industries using empanelled private sector inspection agencies.

• Exemption for small scale and IT industries from registration. • 50 percent exemption will be allowed on Stamp Duty and Registration Fee on

transfer of land meant for Industrial use in the Special Economic Zone. • SEZ does not require Environment Impact Assessment (EIA) approval.

Few Investment Proposals in Jharkhand: Arcelor Mittal Steel has signed a Memorandum of Understanding (MOU) with the government to set up 12 million tonnes Greenfield steel plant with an estimated investment of US $ 8.88 billion (INR 40,000 crore). Tata Steel has made a commitment to investment worth US $ 9.33 billion (INR 42,000 crore) to set up 12 million tonnes steel plant at Singhbhum district. The Chairman of Tata Sons, Mr. Ratan Tata also promised an additional US $ 2.44 billion (INR 11,000 crore) for expanding its existing plant at Jamshedpur.

Page 53 of 58 Jindal Steel and Power Limited which proposed to set up an integrated steel plant worth US $ 2.55 billion (INR 11,500 crore) with an annual production capacity of 5 million tonnes and an integrated power plant with a production capacity of 1000 mw.

The HINDALCO Industries Limited, a flagship company of Aditya Birla group, also committed to setting up a US $ 1.73 billion (INR 7,800 crore) aluminium smelter project along with a 600 mw captive power plant at Tumbagarha village in Latehar district.

The Essar group is also setting up an integrated steel plant with a capacity of 3 million tonnes per year at an estimated cost of US $ 951.06 million (INR 4,285 crore) at Manoharpur in West Singhbhum district.

(Source: http://www.hindu.com/2005/12/28/stories/2005122810960300.htm)

Constraints of Jharkhand

Jharkhand, a mineral-rich state which provides raw material to steel industries both within and outside the country and to thermal power stations, is at the lowest rung of development in terms of infrastructure and industrialization.

The latest survey released by the Associated Chambers of Commerce and Industry of India (Assocham) reveals that Jharkhand is still at the bottom compared to the national average and with neighbouring states. The survey was done by Ernst and Young for Assocham titled "Jharkhand: State's future potential investment areas and strategic direction to ensure rapid growth.

As per the same report the availability and quality of infrastructure is a critical constraint faced by firms operating in Jharkhand as also for potential investors who skip the state as an investment destination. Jharkhand lags behind the India average on most infrastructure availability indicators such as road length per square kilometre, per capita power availability and tele-density.

Road length per 100 square kilometre is 21.4 kilometre when compared to the national average of 74.2 kilometre. Similarly, per capita power availability in the state is 225 kilo watt hour compared to the national average of 450 kilo watt hour.

The state is not only below the national average but also lags behind neighbouring states like Orissa and Chhattisgarh which further acts as a deterrent for investors. Even in terms of investment, the state cuts a sorry figure. Proposed investment in Jharkhand is less than one-fourth of Orissa and Chhattisgarh the other mineral rich states of the country

.

Page 54 of 58 When Orissa and Chhattisgarh received proposals for investment of round US $ 1 billion (INR 4,500 crore), Jharkhand struggled with a proposal for US $ .22 billion (INR 1,000 crore). Despite making efforts by introducing policies Bihar and Jharkhand together got only $ 0.4 million (Rs 2 crore) as foreign direct investment (FDI) from April to August 2010. Again, the main reason was lack of infrastructure when compared to states like Maharashtra and National Capital Region (NCR).

International trade expert Rakesh Joshi from the Indian Institute of Foreign Trade said the ease of doing business is also of importance. According to the World Bank report, Ranchi, the State’s capital, ranks 9th in the country in terms of ease of doing business and yet it is not attracting FDI as much as Mumbai or NCR.

Experts have opinion that by reducing the number of procedures and days required to register a firm through the expedition of the process of granting of mining lease and its single window clearing system, Jharkhand can improve its position drastically. The cost of starting a business is 51.5 percent of the income per capita in Ranchi which is high even when compared to Patna where it is 38.5 per cent

The report has also suggested changes in the mining sector. It has proposed that the government expedite the granting of mining lease by simplifying the process. It should also provide some relief to make mining activities easier.

It has also recommended increased public-private partnership to boost growth in the mining sector because private parties can provide expertise.

Infrastrututre and other procees limitation was added by the political disturbance that have been created by the Maoist.They have recently (7th April,2011) killed a general manager of Reliance Power and critcally injured another corporate official in a forest in Jharkhand’s Chatra district when the company officials went to take stock of the land for mines. Reliance Power is building a 3,960 MW plant in Barhi,Hazaribagh at an estimated investment of US $ 4.44 billion (INR 20,000 crore) and has been alloted coal blocks in Keredari, close to the attack site.This incident may send a wrong signal to investors.

The State although surrounded many political and internal issues is trying its level best to overcome its constraints. It is making all effort to win the confidence and interest of the investors. The best way adopted by the government is to adapt with the changing business environment and timely action taken to correct the key areas. Its well-timed single window policy, Industrial policy, IT policy and focus on development of the infrastructure are catching attention of the investors.

Source : http://www.icawpi.org/en/india-news/748-jharkhand-reliance-power-manager-killed-investments-hampered)

Page 55 of 58

Annexure – I Contact details and function of some department and agencies of the Government of Jharkhand

Departments / Agencies Functions

Secretary Department of Industries Government of Jharkhand

Nepal House, Doranda Ranchi 834 002

Phone: +91 651 2491844 Fax: +91 651 2491884 Email: jhr-doi@nic.in

www.jharkhandindustry.gov.in

Facilitating investment in Industry and Infrastructure

Supporting small and rural industries, artisans and craftsman

Managing Director Ranchi Industrial Area Development

Authority RIADA Bhawan

Main Road Ranchi 834 001

Phone: +91 651 2330407 / 2330817 Fax: 91 651 2208407 Website: www.riada.in

Industrial development of 7 Tribal Districts of Jharkhand

Managing Director Adityapur Industrial Area Development

Authority (AIADA) NS-5, Adityapur Jamshedpur

Phone:+91 657 2371693/2371691 Fax: +91 6572371693

Email: md@aidaonline.com

Industrial development of the Adityapur area of the State

Page 56 of 58

Departments / Agencies Functions

Secretary Department of Energy

Government of Jharkhand Nepal House, Doranda

Ranchi 834 002 Phone: +91 651 2490053

Fax: +91 651 2491002

Development of the power sector in the State

Secretary Department of Mines and Geology

Government of Jharkhand Nepal House, Doranda

Ranchi 834002 Phone: +91 651 2490170 Fax: +91 651 2490641

Regulate and administer Mines and MineralsDevelopment of Mines, establishment of

mineral – based industries Mineral Conservation and Mine closure

Secretary Department of Information Technology

Government of Jharkhand Project Building Room 307

Mantralaya, 3rd Floor PO Dhurwa Ranchi 834 004

Phone: +91 651 2400001 Fax: +91 651 2400956

Email: it.secy@jharkhand.gov.in

Devise and implement the IT Policy

Provide IT connectivity to the various departments of the State

Apply IT to help citizens in their day – to – day interface with the various departments of

the Government

Page 57 of 58

Departments / Agencies Functions

Project Director Adityapur Auto Cluster

Vikash Bhawan, Main Road Adityapur

Telefax : +91 657 2370975 Email : info@autoclusteradityapur.com

adityapurcluster@gmail.com

Provides infrastructural facilities for the auto component sector in the Adityapur area

Director Jharkhand Renewable Energy

Development Agency 328/B, Road No. – 4, Ashok Nagar

Ranchi 834002 Phone No. +91 651 2246970 Fax No. +91 651 2240665

Email : info@jreda.com Website:www.jreda.com

Formulate plans and policies leading to the development of the Non – Conventional energy

sources

Secretary Department of Tourism

Government of Jharkhand Project Building Room 307

Mantralaya, 3rd Floor, PO Dhurwa Ranchi 834 004

Phone: +91 651 2400981 Email: :info@jharkhandtourism.in Website:www.jharkhandtourism.in

Improving the existing Tourism InfrastructureDeveloping sustained and effective marketing

plans and programmes to attract tourists

Secretary Department of Civil Aviation

Project Building, Dhurwa Ranchi 834 004

Phone: +91 651 2401427

Develop and maintain Civil Aviation infrastructure like Airport and Helipads in the

State Develop and modernize Aviation standards that

comply with safety requirements

Page 58 of 58

Annexure – II Cost Estimates The table gives an insight into various cost estimates for doing business in Jharkhand: Key cost elements in Jharkhand

Cost Parameter Cost Estimates

Cost of Land* Government Land: US$ 11 (upcoming industrial areas) to US$ 23 (key industrial areas of Ranchi and Jamshedpur)

Hotel Costs** US$ 55 to US$ 110 per room night

Cost of Residential space***

US$ 26 to US$ 37 per square foot. (Rates depend on the type of structure and location)

Power Cost**** Commercial & Industrial use: 11 cents per kWh Cost of Water* Commercial & Industrial: US$ 3 per 34000 litres

*Source: Department of Industries **Source: Leading Hotels in the State ***Source: Discussions with property dealers ****Source: India Stats