jharkhand state presentation
TRANSCRIPT
Momentum Jharkhand
Page 2
Why Jharkhand?S
tab
le G
ove
rnm
en
t
Dynamic Leadership
Se
cto
r F
ocu
se
d P
olic
ies
& In
ce
ntive
s
Progressive Policies
Re
main
s o
f th
e h
isto
ry o
f Te
ch
no
log
y &
In
du
str
y
Industrial Heritage
Resourceful Geography
Le
ad
ing M
ine
ral
Pro
du
cin
g S
tate
in I
nd
ia ►Endowed with vast natural resources
►Ranks 3rd in mineral production & home to 40% mineral reserves of India
►Mineral based industries categorized as thrust areas by the State
►”Jamshedpur” - first India planned city
►Home to India’s first integrated steel plant set-up in 1907
►Long established presence of leading industry players -TATA Steel, BokaroSteel & Usha Martin
►Strong policy framework
►Policies aligned to national priorities
►Fiscal and administrative incentives
►Routine review and revision of policies
►Visionary Leadership
►Focus on promoting industrial growth & harmony
►Promoting collaboration between government & private sector
Energy Health Care Skill & Edu.
Urban Dev.Tourism IT & ITES
Textiles
Agri, Food & FeedFocu
s
Se
cto
rs
Page 3
Jharkhand A leading industrial state in Eastern India
Ranked 1st in Labor reforms and
inspection related compliances in India[1]
Endowed with 40% of India’s mineral
wealth. Leading producer of steel, coal,
mica and copper in India (1st rank in Iron
ore, coal, Uranium, Mica, Asbestos)
lowest in India & Long history of
industrial harmony[2]
10.5% GSDP[4] growth rate - Second
fastest in Eastern India [5]
Ranked 3rd in “Ease of Doing Business”
in India[6]
1
2
3
Ranked 5th Foreign Direct Investment
(FDI) destination in India
4
[1] World Bank Report on Assessment of State Implementation of Business Reforms
[2] Indian Labour Journal -2015
[3]SWAN: State wide Area Network; CSC: Common Service Centers
[4] GSDP – Gross State Domestic Product
[5]CAGR during 2004-05 to 2014-15
[6] World Bank Report
[7] Source: FDI Intelligence Survey
Page 4
Investment Climate
Single Window Clearance
Online Applicatio
n and
Approval
Regular Consultation with
Industry
Time Bound
Grievance
Handling
Ease of
Doing
Business
Business Enablers
Momentum Jharkhand
Single Window
www.advantage.jharkhand.gov.in
Helpline: 0651-6556666
Common application for different
incentives D
Online monitoring of disbursal of
incentivesE
Grievance handling with timelinesF
Interactive system for approvals G
A SMS/E-Mail status notification
B Common Helpline numbers for clearances
C Qualified and equipped relationship
officers
Strong Policy FrameworkH
Page 5 Momentum Jharkhand
Strong Policy Framework
Jharkhand Single window Clearance Act
2015
Jharkhand Industrial and Investment
Promotion policy 2016
Jharkhand Industrial Park Policy 2015
Jharkhand Food Processing Industry
Policy 2015
Jharkhand Feed Processing Industry Policy
2015
Jharkhand Tourism Policy 2015
7
6
5
4
3
2
1
Jharkhand Procurement Policy 2015
Jharkhand Communication Towers and
related structure Policy 2015
Jharkhand Film Policy 201510
9
8
Jharkhand Export Policy 2015
Page 6
Key Policy Incentives
Jharkhand Industrial
and Investment
Promotion Policy,
2016 and
Industrial Park Policy
50% of the project cost with ceiling up to Rs 10 cr. for industrial park
50% of cost with ceiling of Rs 7 cr. incurred on infrastructure development for sector specific
parks
Financial Incentives -Comprehensive Project Investment Subsidy (CPIS) @ 20% fixed
capital, incentives on VAT, Interest Subsidy, Pollution Control Equipment Subsidy
Jharkhand Food &
Feed Processing
Industry Policy, 2015
Grant-in-aid from 35% to 45% of the project cost maximum - upto Rs 5 cr.
Financial grant-in-aid and concessions and incentives for market development and export
promotion
Jharkhand Tourism
Policy, 2015
30% incentives on capital investment, subsidy on capital power generation, interest subsidy,
and incentives on airport operation (50% load factor in 1st Year)
Policy also provides for Tax and Duty exemption for tourism centric projects
Page 7
Ease of Doing Business- Revised Timeline
Disposal of
Application
Time Limits under
Facilitation Act (days)
Earlier Revised
Registering a
Business under VAT30 1
Allotment of land by
GovernmentUn-defined 75
Environmental
Approvals120 30-69
Registration under
various Labour ActsUn-defined 30
Electricity
Connection30 Days 13
Online grant of Factory Licence and its
subsequent renewals can be issued for 1 to 10
years
Professional Tax registration certificate issued
within one working day of application
VAT refund is now done in 60 days
Water allocation/ connection approval now
available within 30 days
Timeline for Building Plan Approval is 60 days
Approval of Online application for Tree Cutting
and Transportation within 41 days
Most Labour clearances within 50 days
Page 8 Momentum Jharkhand
Competitive Cost of Doing Business
Rajasthan
Power Tariff: 1.55
Skilled Labour wage: 1.0
CPI: 25.47
Gujarat
Power Tariff: 1.11
Skilled Labour wage: 1.40
CPI: 22.70
Maharashtra
Power Tariff: 1.67
Skilled Labour wage: 1.47
CPI: 28.93
Karnataka
Power Tariff: 1.5
Skilled Labour wage: 1.27
CPI: 25.90
Uttar Pradesh
Power Tariff: 1.77
Skilled Labour wage: 1.53
CPI: 24.85
Jharkhand
Power Tariff: 1.17
Skilled Labour wage: 1.39
CPI: 24.33
Madhya Pradesh
Power Tariff: 1.24
Skilled Labour wage: 1.61
CPI: 26.09
Chhattisgarh
Power Tariff: 1.27
Skilled Labour wage: 1.19
CPI: 22.7
Andhra Pradesh
Power Tariff: 1.36
Skilled Labour wage: 1.91
CPI: 23.85
* Power Tariff and Skilled Labour Wage have been shown as Cost Index with base as 1.CPI is Consumer Price Index of the capital city (For Andhra Pradesh, Vijayawada is
considered), sourced from www.numbeo.com
Page 9
Abundant Skilled Human Resources
Educational Infrastructure
Education ProgramNo. of
Institutions
Technical
Architecture &
Engineering/
Technology
16
MCA 4
ITI 20
ITC 157
Polytechnic 25
MedicalMedical 3
Pharmacy 2
Management
Management 13
Hotel Management 2
Others B.Ed/M.Ed 116
Pre
mie
r In
stitu
tio
ns a
nd
Deve
lop
me
nt C
en
tres
National Metallurgical Laboratory, Jamshedpur
Steel Authority of India Limited, R&D centre
Metallurgical & Engineering Consultants Limited
Central Mine Planning and Design Institute
TATA steel R&D Center
Birla Institute of Technology, Mesra
National Institute of Technology
Indian School of Mines, Dhanbad
XLRI, Jamshedpur
Indian Institute of Management
National University of Study and Research in Law
Central University of Jharkhand
National Institute of Foundry and Forge Technology
Momentum Jharkhand
Page 10
Industrial Infrastructure Government owned - Industrial Development Authority
Responsibilities of Industrial Area Development Authorities
►Proactive in Industrial Development in
command districts
►Continuous assistance to Developed/ under
Developed/ Proposed Industrial area
►Single Point assistance to the entrepreneurs
►Assistance in providing basic infrastructure
amenities, Bank finance etc.
JIADA
►No of industrial areas
functioning: 28
►Total Area: 6368 acres
►No. of working units: 2085
Momentum Jharkhand
No Industrial Area Key industries
1 Palamu-Garhwa Mineral & chemical based industries
2 Lohardaga Aluminum industries, power plants
3Koderma-Hazaribagh
Mica based industries, power plant, glass, alloy steels, cement, refractory
4 Ranchi MSME, IT & ITES, food processing
5Dhanbad-Bokaro
Coal industrial area, steel, refractories, coal based power plants
6 SingbhumIron & steel, auto components, cement, IT& ITES, horticulture, food processing, silk and textile
7 Ghatshila Copper and Forest based Industries
8 DeogharGlass, steel, aromatic medicinal plant, coal based power plant, silk textile industries, food processing
Page 11
Major Industrial Corridors & Connectivity Infrastructure
Major Industrial Corridors
Momentum Jharkhand
Deoghar
Hazaribag
1. Amritsar-Delhi- Kolkata Industrial Corridor (181 Kms)
2. Ranchi-Patratu- Ramgarh Industrial Corridor (70 Kms)
3. Kodarma – Behragora Industrial Corridor (285 Kms)
Road connectivity:
15 National Highways (NH) pass through the state
Major industrial activity is concentrated in an area South
of NH-2, which connects Kolkata with Delhi via Jharkhand
Industrial Corridor connecting Ranchi, Dhanbad and
Jamshedpur forming a 6 lane Golden Triangle.
Rail connectivity:
Total 2182 kms rail network.
Air connectivity:
Domestic airport : Ranchi. Connecting to all metros and
major cities
GoJ already initiated up gradation of Ranchi airport to
international status.
Jamshedpur, Dumka, Dhanbad, Bokaro, Giridih, Deoghar,
Hazaribagh, Daltonganj and Noamundi also have
airstrips.
Source: Jharkhand Economic Survey 2015-16
Page 12
Energy Sector in JharkhandAmongst the lowest electricity tariff in the country
Committed to Reform Power Sector
Momentum Jharkhand
First State to sign UDAY MoU (5th Jan’16)
Amongst first to unveil “24X7 Power for All” roadmap
Note: 1)MW – Mega Watt 2) IPP- Independent Power Producer 3)UMPPS- Ultra Mega Power Projects 4) JBVNL- Jharkhand Bijli Vitaran Nigam Ltd.
5)EPC- Engineering Procurement Contract 6)PSS- Power Supply Systems 7) MVA – Mega Volt Amp
Target of 100% village electrification by Dec’2016 and 100% Household
electrification by Mar’2018
~22,500MW of power generation projects under various stages of
development
Encouraging IPPs with an option to sell 25% of installed generation
capacity to State.
Two upcoming 4,000MW UMPPs in
Tilaiya and Deoghar
4,000MW NTPC and GoJ (JBVNL) Joint
Venture projects at Patratu
Future coal blocks/ coal linkage
opportunities
Power Generation
Transmission systems worth ~Rs.3,000
Cr. proposed to be developed under
PPP route.
EPC opportunities of worth ~Rs.9,000
Cr.
Power Transmission
Appointment of billing agencies for Urja
Mitra
Nearly 246 new PSS to be
commissioned capacity from 3,818MVA
to 7,412 MVA
Planned investment of Rs.14,000 Cr.
Power Distribution
Investment Opportunities
Dev
elo
pm
en
t T
arg
ets
Page 13
Healthcare opportunities in Jharkhand
Momentum Jharkhand
Investment Opportunities
100 acres of land parcel, to house Medical College, Super-
specialty Hospital, Nursing & Paramedical Institute,
Diagnostic Center and Laboratories on PPP mode
Medico City, Itki, Ranchi
Other opportunities Setting up of
Super speciality hospitals
Dialysis Centre at all Medical Colleges & District Hospitals
Central Bio Medical Waste Disposal Unit, Centralized
Sterilization Drugs & Consumables : Supply and Setting up
of Manufacturing Plants, as Jharkhand adopted “Free
Drug Policy” in 2015
Schemes / Services PPP Partner
Pathological
Diagnostics ServicesSRL & Medal Healthcare
Radiological
Diagnostics Services
Healthmap Diagnostics Pvt.
Ltd.
‘104’ - Health
Information Help Line
Piramal Swasthya Research
Institute Hyderabad,
‘108’ - Emergency
Ambulance ServicesZiqitza Health Care Ltd.
Successful PPP projects
Fiscal Incentives for establishing Medical College
20, 25, 30 crores grant for Medical College with 50
seats, 100 seats, 150 seats respectively
Many other Fiscal and Administrative Initiatives
Page 14
Key Opportunities
Momentum Jharkhand
Higher Education
Opening New Universities
Setting up of Wi-Fi campuses and
Digital library in all universities
Setting up of Industry promoted Centre
of Excellences
Establishing campuses of Foreign
universities/technical institutions
Technical Education
Opening New Engineering /
Polytechnic colleges
Management of colleges on PPP
mode
Development of COEs and t-SDIs for
Skill Development
Skill Development
Forging partnership for Skill
Development Centers in existing
institutions
Setting up of 50 Mega Skill
Development Centres
Setting up of Entrepreneurship
Development Fund (EDF)
Higher, Technical Education & Skill DevelopmentA Conducive Climate for Educational Institutions
Indicator Jharkhand India
Higher Education
Gross Enrollment Ratio
(Lakhs)13.1 23.0
College per Lakh Population 8 26
Technical Education
Engineering College density 1 per 20 Lakhs 1 per 7.7 Lakhs
Polytechnic College Density 1 per 11 Lakhs 1 per 3 Lakhs
Allocation of 10 Acres of land for single disciplinary University
and provision of endowment fund of Rs 2 cr.
Allocation of 25 acres of land for Multidisciplinary University
and provision of endowment Fund of Rs 4 cr.
Incentives for Setting up of Private university
Note: 1) COE: Center for Excellence
2) t-SDI: Technical Skill Development Institutes
Operation and Maintenance of Polytechnic and
Engineering Colleges on PPP mode have been
notified.
Page 15 Momentum Jharkhand
Urban DevelopmentInvestment Potential Across Infrastructure Domains
Investment Opportunities
341 acres Encumbrance free
contiguous land parcel
Transit Oriented
Development (TOD) plan
FSI up to 4 and 35%
ground coverage along
main corridor
In close proximity from City
centre, Hatia Railway
Station, Birsa Munda Airport
Metrorail corridor & transit
oriented hub are proposed
Smart City - Ranchi Other Opportunities
Investment opportunities include:
Convention Centre and Urban Tower in
Ranchi
Jharkhand Urban Planning & Management
Institute, Ranchi
Bus Terminal cum Commercial Complex in
Dhanbd
ISBT at Ranchi and Deoghar
Market Complex in Jamshaedpur
Haz House
Roads and Flyovers across state
Development of Septage & Drainage System
Water Bodies Beautification
Note: 1) ISBT: Interstate Bus Terminal
Page 16
IT & ITeS Scenario
IT & ITeS initiatives
Innovation Lab1
Venture Capital Fund 2
SPV for Network 3
Setting up of IIIT4
IT Parks 5
Software Parks 6
EMC [1]7
Note: 1) EMC: Electronic Manufacturing Cluster
New policies are being announced for development of IT/ITeS, BPO, ESDM & Start Ups
Key MOUs signed with Oracle, HP, CISCO and now with Siemens, PTC, etc.
Thank You
Po
licy
Lau
nch
► IT/ITeS Policy 2016
► BPO Policy 2016
► ESDM Policy 2016
► Start Up Policy 2016
► Automobile& Auto Component Policy 2016
► Textile, Apparel and Footwear Policy 2016
Page 19
IT/ITeS Policy 2016Key Highlights
100% reimbursement of Stamp duty, registration fee and transfer duty
Reimbursement of income tax, patent filing, provident fund and interest on loan
Entrepreneurship Development Program
VAT/GST reimbursement
Technology acquisition support
Permission for three shift operation
FAR relaxation
Page 20
BPO Policy 2016Key Highlights
Up to 100% reimbursement of net VAT/Service tax, electricity duty and lease
rental
Reimbursement of bandwidth/telephone charges, solar power, training and EPF
Relaxation in late shifts for women
Special consideration for units employing 500 or more
Endeavour to outsource government services to local BPO
Initial housing and travelling reimbursement
Solar PV installation support
Page 21
ESDM Policy 2016Key Highlights
100% reimbursement of Stamp duty, registration fee and transfer duty
Reimbursement of
Creation of 3 ESDM hubs at Ranchi, Jamshedpur and Dhanbad
Allotment of government land
Test facility center
Relaxation in late shifts for women
Capital investment
Income tax
Interest
Patent filing
Technology acquisition
Recruitment
Provident Fund
Product certification
Employment rebate on cost of
land
Transport & entry tax
Page 22
Startup Policy 2016Key Highlights
100% reimbursement of Stamp duty, registration fee and transfer duty
Reimbursement of
Establishment of Jharkhand Venture Capital Fund & Jharkhand Entrepreneurship
Development Fund
Local preference in tendering
Central Incubation Lab (CIL) as hub in Hub & Spoke model for incubation
Upgradation of State funded schools and higher education institutes
Incubation centres in institutions
VAT Patent filing Municipal duties
Lease rental Bandwidth & electricity charges
Page 23
Automobile& Auto Component Policy 2016Key Highlights
Financial Assistance of 50% for fixed capital investments in building & common
infrastructure to developers of auto clusters, vendor parks etc.
Comprehensive Project Investment Subsidy for investments in Machinery, Plant
& Equipment etc.
Incentive to industries implementing state reservation policy& located in
extremist infested blocks
Net VAT concession on sale of finished goods for 10 years or 150% of capex
spent in first seven years, whichever is earlier.
Stamp Duty &Registration fee Exemption
Page 24
Textile, Apparel and Footwear Policy 2016 (1/2)Key Highlights – Industry Units
One-time support up to Rs. 13,000 per employee for skill development
Employment generation subsidy of Rs. 5,000 per month per worker for 7 years
for capacity building of workers. Rs. 6,000 for SC/ ST/ Women
Reimbursement of up to Rs. 1,000 per person per month towards expenditure on
ESI and EPF for 5 years
Land will be provided upfront or in 5 equal instalment in five years as per the
rules applicable
Capital Investment subsidy of 20% upto Rs. 50 Crore
VAT subsidy of 100% for 7 years followed by 40% for next 3 years
100% reimbursement of stamp duty
Page 25
Textile, Apparel and Footwear Policy 2016 (2/2)Key Highlights - Textile, Apparel and Footwear Parks
Assistance of 50% of the project cost or Rs 40 crore, whichever is lower for
Mega parks
Assistance of 50% of the project cost or Rs 7 crore, whichever is lower for other
Parks
Additional capital subsidy up to 10% of the project cost or Rs 10 crore to
Developer availing benefits under GoI India scheme on SITP
Stamp Duty reimbursement of 50%
Export Exhibition Centre at cost of Rs. 20 crore by JIADA
The SPV allowed to allocate land for setting up & starting of operations of units
before completion of park