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BEST PRACTICES IN RAJASTHAN FOR INDUSTRIAL DEVELOPMENT
Commissioner Inv. & NRI, Bureau of Investment Promotion, Rajasthan
September 2015
Page 2
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
Page 3
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)
Page 4
…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
Page 5
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
Page 6
…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
Page 7
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
Page 8
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.
OPPORTUNITIES IN VARIOUS SECTORS
Page 10
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
1
3
2
State contributes 12% of milk, 35% of goat meat & 40% of wool in India
Major players
Page 11
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
Page 12
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
Page 13
Healthcare
Major tourist destination has tremendous potential for Medical Tourism
Major players
Medical & healthcare institutions
Medical, dental & paramedical colleges
Opportunity for private sector investment
Page 14
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
Page 15
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
Page 16
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.
Page 17
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
Page 18
Tourism Investment Opportunities
Rajasthan Tourism Unit Policy 2015
Highlights
Key Players
A wide ranging definition of Tourism Units Allotment of land at concessional DLC rates No conversion charges or development charges Time bound approvals of building plans and
conversion proposals Floor Area Ratio doubled from 2.25 to 4.5 All licenses required for the Tourism units are
now given for 10 years A liberal package of incentives for Heritage
Hotels
Page 19
Urban Infrastructure Opportunities
Jaipur Metro Rail: Phase II
Waste water recycling and beautification of Amanishah
Stream
Ropeway Project at various locations in Jaipur on
design, build, fund, operate and transfer basis
Educational & Health institutions: land identified by
JDA
Affordable Housing project on turnkey basis
Smart City Project: Ajmer selected for development as
Smart City
Convention Centre at Udaipur in PPP mode
Page 20
Other Sector Investment Opportunities
Defense Manufacturing MSMEs
Composite cap of FDI raised to 49 per cent by Govt. of India
RIICO has already identified 2283.9 hectares for defense manufacturing units
State bears 50% of the capital cost incurred for establishment of effluent treatment plant provided the unit uses 80% of the recycled water
Important MSME sectors in Rajasthan: Footwear, Gems, leather products, Ceramics & Pottery etc.
BEST PRACTICES
Page 22
Dedicated Industrial Zones
► A special Japanese Zone, 120 km from New Delhi,
spread in 1167 acre has been setup in Neemrana
(Alwar). It is the first country specific industrial zone in
India
► Houses known Japanese companies like Nissin, ACI
Mitsui, Daikin and Mytex Polymer
► A total of 473 acre land allotted to 45 units at
Neemrana; 37 units have already commenced
production
► Japanese Investment Zone and Export Promotion
lndustrial Park are also located in Neemrana
► The zone is being extended by another 500 acre at
Ghiloth
Japanese Investment Zone, Neemrana
Page 23
Dedicated Industrial Zones
►Korean Investment Zone at Ghiloth
Industrial Area
►Total Area: around 250 acres
►Around 125 km from New Delhi and 140
km from Jaipur
►Ghiloth Industrial Area is also housing
dedicated zones for ceramic & glass and
general industries
►Area opened up for allotmentKorean Investment Zone
Page 24
Dedicated IT Parks
IT / ITeS declared as Public Utility Services
Pvt. IT Parks, IT Units developers would be given assistance in procuring land and change in land use in Master Plan
IT Incubation Centre (Ready to use centers with State of art computing facilities) established by RIICO
Page 25
Conti..
Software Units permitted in Residential areas
50% Exemption from payment of Electricity duty for 7 years
All fiscal benefits as given in Rajasthan Investment Policy 2003 as amended from time to time extended to IT/ITeS units
Stamp duty exemption for purchase of land in IT Parks
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► Provisions of Rajasthan Imposition of Ceiling on Agricultural Holdings Act 1973 do not apply
► 100 per cent discount to developer on land conversion
► Developers, co-developers and units are totally exempted from any stamp fee
► 100 per cent discount on stamp duty for units set up in rented buildings in performance of rent deed
► 100% discount power fee for 10 years
Special Economic Zones
► 100% discount on work contract tax to developers and units till 23rd Aug 2014 (for backward regions till 23rd Aug 2017)
► 100% discount on entry tax for necessary capital goods for units to set up another unit
► 100% discount on VAT on raw material for manufacture of products.
► 100% discount on luxury tax for 7 years► 50% discount on entertainment tax for 7
years
Rajasthan has SEZs for gems & jewellery (Jaipur) and handicrafts (Jodhpur) besides a world-class multi-
product SEZ – Mahindra World City (JV of RIICO and Mahindra Group)
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Mahindra World City, Jaipur
A multi-product SEZ in Jaipur with an area of 3,000 acres endowed with high quality infrastructure
Companies Present:Infosys, Wipro, Deutsche Bank, ICICI Bank, QH Talbros, Connexions, Nagarro Software and Tech Mahindra
The IT zone in the Mahindra World City is spread over 750 acres, India's largest IT SEZ with plug-and-play facilities and robust connectivity
Located on the Golden Quadrilateral, 18kms from the airport and 21kms from the railway station
Dedicated zones for IT / ITeS, Engineering and Related Industries, Handicrafts, Apparel, Gems and Jewellery, Warehousing and Logistics etc
Page 28
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
Page 29
14+ Progressive Policies
BPO & KPO Centres 2011
Solar Energy Policy 2014
Tourism Unit Policy 2015
Tourism Trade Act
2010
Agro Processing &
Agri Businesses
2010
Investment Promotion
Scheme 2014
Township Policy 2010
Mineral Policy 2015
Micro, Small & Medium
Enterprises 2008
Generation of Electricity from Wind
2012
Establishment of Private Universities
2007
Generation of Electricity
from Biomass 2010
Eco – Tourism
Policy 2010
PPP Projects in
Infrastructure 2011
Page 30
Tourism Policy Highlights
► The policy has defined ‘Tourism Units’ comprehensively - Its
scope has been widened
► Free of cost Conversion of land in Urban and Rural areas for
new tourism units; No Development charges shall be levied
on new tourism units in urban areas
► No Conversion charges for existing Heritage properties and
Existing Heritage Hotels in urban and rural areas
► BSUP Charges shall be levied only on covered area of
Heritage Hotels
► Time period for conversion of land fixed. Provision of
deemed conversion if timelines not adhered to
Page 31
CONTI..
► Tourism Units will be allowed Double FAR.(i.e.
from General FAR of 2.25 to 4.50)
► No limit regarding road width in granting
approval to Heritage Hotels both in Rural and
Urban areas
► 50% rebate in Special Road Tax up to April,
2018 for Luxury coaches of recognized tour
operators
► Approval of building plan etc. in fixed time
period by concerned departments has been
fixed
Page 32
Solar Energy Policy Highlights
Agricultural land can be leased for 30 years to Power
Generation Companies ( Solar and Wind Energy)
Easy processing and lower registration fee
Solar power plant of all capacities to be under Green
Category (RSPCB)
Setting up of projects without going through tedious
process of land conversion
Availability of government land at DLC rates
Fast track approval of Mega Solar Power Projects by
SLEC
Page 33
Labour Department Initiatives
► 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
Page 34
Factories & Boilers Department
► Rajasthan Factories and Boilers Module (RAJ FAB) has made the 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,
resulting in decentralization of powers under Factories Act, 1948► Self-certification scheme in lieu of inspection under the act
Page 35
OTHER INITIATIVES
► No construction permit/building plan approval is
required in RIICO industrial areas for plot size up
to 40,000 sq. m. And deemed approval for plot
sizes greater than 40,000 sq. m. in two weeks
► RIICO does not seek any 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
Page 36
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
543 3
POSITION ATTAINED
Partner with Us
► Resurgent Rajasthan Partnership Summit on 19-20 November, 2015 at Jaipur
► Endeavor to bring investors, senior state government officials and business communities
► Explore investment environment and opportunities in Rajasthan
Page 38
WHOM TO CONNECT WITH
Dr. Samit Sharma
Commissioner, Investment & NRI,
Bureau of Investment Promotion, Rajasthan
Mr. Iqbal Khan
Joint Secretary, Department of
Industries, Govt. of Rajasthan
Mr. Nagesh C. Sharma
General Manager,
Bureau of Investment Promotion, Rajasthan
Mr. Laxmi Chand Jain
Additional Director, Department of
Industries, Govt. of Rajasthan
Mr. Giriwar Kumar Sharma
Additional General Manager, RIICO Limited,
Jaipur, Rajasthan
Mr. Mohit Bhasin
Director, TAS, Government & Public Sector, Ernst & Young
LLP
THANK YOU!
Page 40
Amendments in Labour Laws
► Threshold limit for layoff, retrenchment and closure increased from 100 to 300 workers, for seeking permission from the Government
► Limit for filing application for registration as Representative Union increased from 15% to 30% workers
► Time limit for raising the industrial disputes restricted to three years► Existing threshold of 10 workers (units using power to manufacture) and 20
workers (units manufacturing without power) increased to 20 and 40 respectively
► Threshold limit for obtaining licenses revised from 20 to 50 workers► For third party training of an apprentice, reimbursement of 100% cost of the
establishments for unit employing less than 250 workers and 50% of establishment cost in case of more than 250 workers
Page 41
Proposal for Partner Country
► The “Partner Country” status essentially implies that the Country would occupy an important part at the event
► Partner Country would be offered a Country Session of around 60 minutes wherein they can invite industry and Govt to attend and Speak about possible collaborations between both the Countries and companies operating in both countries
► Partner Country is expected to bring a delegation of industry from the respective country from various sectors such as auto, electronics, Urban Development, Agriculture, Food Processing, Pharma, Technical Textiles, etc. who may have interest to invest in Rajasthan
Page 42
Proposal for Partner Country
► Partner Country would be acknowledged at various collaterals at the venue during the event
► Partner Country would be allowed to put up Country Flag at the venue
► Hon’ble Prime Minister / President to be Invited as Guest of Honour at the Programme
► The Partner Country to depute a nodal official with whom CII could coordinate
further
