msme opportunities in rajasthan
TRANSCRIPT
Commissioner Inv. & NRI, Bureau of Investment Promotion, RajasthanSeptember 2015
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The State of Rajasthan…
Delhi
Chennai
Pune
Kolkata
Mumbai
Bangalore
Major Indian Cities
Major Industrial Centers
Capital of Rajasthan
Bikaner
Jodhpur
NagaurAlwar
Chittorgarh
Jaipur
Udaipur
Banswara
Key Industrial Centers in Rajasthan
KotaBhilwara
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Rajasthan – An Emerging Economy
GDP of INR 5,146 billion with CAGR
growth of 18%*
Largest state by area & home to 68
million
Pioneering regulatory reforms in the
country
Home to domestic & global giants
across sectors
*GDP in 2013-14 & CAGR for the period 2009-14 (at current prices)
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…Also Enjoys Excellent Connectivity
► 2nd largest network of National Highways (20) with road length exceeding 7,300 km
► 7 Inland container depots (ICD) linked to and 1 air-cargo complex
► Rail network of 5,800 km; 2 domestic & 1 international airport connecting key cities
► Proximity to National Capital Region
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Economic Growth through Infrastructure development…
Kolkata
Chennai
Mumbai
Jaipur
Delhi
East West Corridor
Golden Quadrilateral
► Integral part of National Corridors 12% of Golden Quadrilateral 20% of East West Corridor
► DFC connecting Delhi & JNPT 60% state area in DMIC
► First state to have dedicated country zones
Japan Zone – 473 acres Upcoming Korea (250 acres)
& Japan Zone – II (500 acres)► 327 Industrial Areas - 73,600
acres & specific parks
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…With participation from Private Sector
Roads
20,000 km of road to be executed through PPP mode through various modes
Execution of road projects in phase wise manner
Power
Uninterrupted power supply to industries 15,740 MW installed capacity of which 25% is from
renewable sources Planned capacity addition of 6,500 MW
INR 36,000 Crore of projects in pipeline across Roads, Urban Infrastructure, Power & Water through PPP mode
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Abundant Natural Resources
79 varieties of mineral in state
Leading producer of cement grade limestone and steel grade limestone
Leading producer of Lead, Zinc, Gypsum etc.
Large hydrocarbon and natural gas reserves in Barmer & Jaisalmer Region
Fertilizer minerals of Rock-Phosphate, Gypsum & Potash
Renowned for deposit of Marble, Sand Stone & decorative stones
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Availability of Skilled Manpower
Distribution of education institutions Reputed Institutions
IIM, Udaipur AIIMS, Jodhpur
BITS, PilaniIIT, Jodhpur
National Law University, Jodhpur
Major exercise launched on Skill Development of youth – 5 to 6 lakhs by RSLDC in next 5 years
Proposal to set up skill-infra cluster in Neemrana, Alwar to train youth in new areas of Robotics, Mechatronics etc.
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Industrial Infrastructure
327 Industrial Areas
Well Developed Industrial Infrastructure
IT Parks
SEZs
Agro Parks
EPIPs
Stone Parks
Solar Parks
Leather Parks
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MSME Sector in Rajasthan
Year Registered MSEs (Cum. Lakh numbers)
Cumulative investment ( Rs. in crores)
Cumulative employment (persons in lakhs)
2006-07 2.91 5918.63 11.51
2007-08 3.05 7397.88 12.35
2008-09 3.19 8888.2 13.16
Rajasthan is blessed with abundant physical resources, agricultural surplus and entrepreneurial skilled labor. These provide ample opportunities of manufacturing, value-addition and processing activities in the small scale sector, which has been the strength of the State. Some of the main sectors of the MSMEs in the Rajasthan are Gems & Jewellary, Textiles & Garments, Handicrafts, Automobiles, Carpets, Minerals and various stone industries and agriculture. These sectors contribute to large extent to the state economy.
Details of Micro & Small Industries in Rajasthan
OPPORTUNITIES IN VARIOUS SECTORS
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Agro & Food Processing
Rajasthan has 10.4% of India's Land area, 51.01% of which is under cultivation
Agro Food Parks at Kota, Jodhpur, Sriganganagar and Alwar
Agriculture accounts for 20.45% of the states GDP, with 62% of total workers of the State dependent for livelihood
Agro sector at a glanceDiverse agro-climatic conditions encourage cultivation of variety of crops
Largest producer of:
Guar, mustard , gram and seed spices
Second largest producer of:
Oil seeds, moth bean
Third largest producer of:
Soyabean
Business & Investment Opportunities
Organic Farming
Contract Farming
Post harvest infrastructure: ware – housing, cold chains, testing & laboratory, certification
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State contributes 12% of milk, 35% of goat meat & 40% of wool in India
Major players
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Automotive & Ancillary
Bhiwadi
Pathredi/Chopkani
Khushkhera /Tapukra
Auto Clusters
► 1167-acre industrial area has been developed by RIICO in Neemrana, especially for industrial units from Japan
Advantage
Japanese Zone, Neemrana
Skilled & relatively low cost labour
Reduced logistics cost
Uninterrupted power availability
100+ automotive and auto component manufacturing companies present
Availability of large contiguous land parcels
Two land parcels (600 acres for 4-wheeler OEM) and (150 acres for 2 wheeler OEM, tractors & farm equipment) - have been reserved
Key Players
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a A A
Exemption from payment of 50% of Stamp Duty
Exemption from payment of 50% of conversion charges
50% of Electricity Duty for seven years
Exemption from payment of 50% of Land Tax for seven years
Exemption from payment of 50% of Mandi Fee for seven years
50% exemption from payment of Entry Tax on capital goods, for setting up of plant
Minimum Investment: INR 25 lakh
Investment Subsidy of 75% for first four years, 60% for next three years and 50% for the last three years
Employment Generation Subsidy up to 10% of VAT and CST for ten years
Electronic Hardware
Initiatives taken by Rajasthan Govt.: 100 acres has been allotted to Electronic Industries Association of India (ELCINA) 125 acres has been reserved for developing dedicated zone for IT/ITES & Electronics industries. Multi-product SEZ has been established over 3000 acre Under "Modified Special incentive Package Scheme ", area notified for Brownfield EMC
Entry Tax Exemption
Other Exemptions
Stamp Duty & Conversion ExemptionFiscal
Incentives to
Electronic Industry
Subsidy
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Healthcare
Major tourist destination has tremendous potential for Medical Tourism
Major players
Medical & healthcare institutions
Medical, dental & paramedical colleges
Opportunity for private sector investment
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IT & ITeS
Availability of vast and cost competitive talent pool
Highly attractive and competitive incentive package
India's largest Special Economic Zone (SEZ) for IT/ITeS companies in Pvt. sector
Competitive advantage in IT & ITeS
Well-developed internet connectivity network
Key players
Mega project
incentive
Training Incentives
Rebate for
patent
Financial support
Venture Capital support
Exemption from
payment of various taxes
State Government’s push for IT & ITeS
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Gems & Jewellery
The exports of Gems and Jewellery sector was INR2,686 Crores and accounted about 11% of the total exports from Rajasthan in 2010-11
Jaipur is a key centre of colored precious & semi-precious stones for both naturaland synthetic and other forms such as carving, bead-making, stringing, manufacture
James & Jewellery Industry - Highlights World's largest center for Gemstone cutting and polishing.
Accounts for about 90% of the emerald cutting globally
Nearly 95% of small diamonds processing Jaipur contributes more than 80% of total
gems and jewellery exports from India 100 active exporters and 1500 sub-
contractors in Jaipur
Key source for precious and semi-precious stones: Ruby, Emerald, Garnets, Agate, Amethyst, Topaz, Lapis lazuli, Carnelian
Major playersRIICO has developed 2 special zones for Gems & Jewellery at the Export Promotion Industrial Park (EPIP) at Sitapura, Jaipur.
Major items – Thewa, Lac bangles, Kundan and Minakari, enameled gold jewellery, uncut diamonds and emerald-cutting
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Minerals & Ceramics
Encouragement for exploration by private prospecting companies
Online payment of royalty
Initial period of grant of lease: 50 years
Rajasthan Mineral Policy 2015 Highlights Biggest producers of minerals like wollastonite, lead, zinc, calcite, gypsum, rock phosphate, silver, marble, sandstone and serpentine (green marble).
Western Rajasthan has large deposits of hydrocarbons
25-30 Billion Cubic Metre of natural gas reserves
25 Million Tonnes of heavy oil reserves 53 MT of bitumen have been discovered
State level monitoring for time-bound inter-departmental clearances
Major players
Transparent mechanism and easy transfer of mineral concessions
To promote zero-waste mining, fee on dispatch of over burden will be removed
Tremendous scope for setting up of new mineral based industries as various minerals mined in Rajasthan are being sent to other states in raw form
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New Renewable Source of Energy
Wind Energy Solar Energy
Thermal EnergyBiomass Energy
India's leading state in tapping wind energy for power generation
The wind energy potential in the state is estimated to be about 5400 MW
300-330 clear sunny days comparable to deserts of California, Nevada, Colorado and Arizona
Two critical resources High level of solar radiation (6-7 kWh/ m2/
day) Large tracts of flat land
Main source for biomass energy in the State is Mustard Husk and Julie Flora
'Policy for Promoting Generation of Electricity from Biomass 2010' for encouraging investments
Capacity of 99.30 MW has been commissioned as on December, 2014
Total installed thermal power capacity in the state is 8036 MW.
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Textile
Leader in production of polyester viscose yarn and synthetic suiting materialHighest processing of low-cost and low-weight fabricLargest producer of PV suiting
Network of backward and forward linkages offers competitive advantage16 ATDC Smart Centers set up for providing trained manpower
8 integrated textile parks sanctionedSpecial Incentive Package for Power Loom Sector in Jodhpur, Pali and BarmerSpecial Power Loom Industrial Area to be set up in Pali
Some special exemptions from: Payment of 50% of
Electricity Duty for seven years
Payment of 50% of Land Tax for seven years
Payment of 50% of Mandi Fee for seven years
Payment of 50% of Stamp Duty on purchase or lease of land and construction or improvement on such land
Payment of 50% of conversion charges payable for change of land use
Key Players
EASE OF DOING BUSINESS
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Single Window Clearance Mechanism
One online platform for multiple departments & forms
Time Bound Clearances for fast track clearances
Executive Committee for priority cases
Customized Packages
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Focus on Improving Business Climate
• Amendment in labor act to improve doing business• Industrial Dispute Act : limit raised to 300 for layoff,
retrenchment or closure• Factories Act: threshold increased to 20 and 40• Contract Labour Act: number of workers raised to 50
• Amendments in Apprentice Act to encourage training• Boiler inspection by 3rd party agencies
• Online application and granting of approvals• Encouraging self-certification• Green category industry can get environmental clearances upon
application
Labour
Environmental Clearance
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Incentivizing Manufacturing & Services Enterprises
50%
exemption
► VAT & CST for seven years► Electricity Duty, Land Tax and Mandi Fee for
seven years► Stamp Duty► Land conversion charges
Additional Incentives
Rajasthan Investment Promotion Scheme 2014
► Incentives for thrust sectors► Customized Incentive Package ► 100% exemption on Entry tax► Investment in backward districts
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DEPARTMENT SPECIFIC INITIATIVES
Industries Department
► Entrepreneur Memorandum I (EM-I) and Entrepreneur Memorandum
II (EM-II) completely online. The state has approved 12646 EM-I and
3339 EM-II online till date
► Single Window System, for tracking of application status by the
investor
Rajasthan State Pollution Control
Board
► Submission of application, registration, renewal and issuing of
certificates online
► Certificates issued by RPCB are verifiable through a QR code and
verification can be done by phone as well
► For 88 categories of industries that are Green industries, the
acknowledgement of consent application serves the purpose of
Consent
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DEPARTMENT SPECIFIC INITIATIVES
Labour Department
Labour Department Management System (LDMS) allows filing of applications, registrations, licenses, renewals, payments and filing of returns under 12 major labour legislations
Inspection only once a year
Notified key amendments in Industrial Disputes Act, 1947, the Contract Labour (Regulation & Abolition) Act, 1970 and the Apprentices Act, 1961
Factories and Boilers
Department
► Registration, renewal and submission online
► No prior permission required for installation and repair of boilers;
Investor given the choice in selecting the competent person to certify
the boilers
► Annual renewal has been dispensed with
► Territorial jurisdiction of Deputy Chief Inspectors increased;
Decentralization of powers under Factories Act, 1948
► Self-certification scheme in lieu of inspection under the act
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DEPARTMENT SPECIFIC INITIATIVES
Department of Information
Technology and Communication
► e-Mitra has been implemented in the state for convenience and
transparency in availing various services with respect to
application and payment under a single roof at their door step
using e-platform
► At present there are more than 12,826 operational e-Mitra
kiosks in the urban areas and more than 20,362 operational
Common Service Centers in rural areas
Finance Department
► e-GRAS is an online Government Receipt And Accounting
System which facilitates collection of tax/non tax revenue online
► E-stamping facility is now available
► Sample Model Contract and Sale deed are available online
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DEPARTMENT SPECIFIC INITIATIVES
Commercial Tax Department
► All processes related to registrations, assessment, filing of
taxes and refunds are online
► Single ID for state commercial taxes
► State also facilitates online refund
► Professional tax has been repealed in the State
► There are no static check post and mobile squads in the states
Vidyut Vitran Nigam Ltd.
► Application for electricity connection can also be made online
through Single Window System
Revenue Department
► Land records are digitized and an investor can extract copy of
land records along with details of mutation from Apnakhata
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DEPARTMENT SPECIFIC INITIATIVES
Law Department ► E-cause list in District courts are available online
Rajasthan State Industrial
Development & Investment
Corporation Ltd (RIICO)
► No construction permit/building plan approval required in RIICO
industrial areas for plot size up to 40,000 sq. m.
► Deemed approval for plot sizes greater than 40,000 sq. m. in two
weeks
► Certificate for no tax dues, notarized affidavit for not staking
building material on public land, NoC from Traffic and
coordination department and NoC from Storm water and
Drainage Department Not Required
► Geographic Information System (GIS) for new RIICO areas
which are ready for allotment have been developed
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World Bank Report on Ease of Doing Business (2015)
RAJASTHAN HAS FEATURED IN THE LIST OF TOP STATES IN INDIA FOR DOING BUSINESS
Complying With
Environmental Procedures
Registering & Complying
with Tax Procedures
Allotment of Land and Obtaining
Construction Permit
Setting up Business
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POSITION ATTAINED
THANK YOU!