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Commissioner Inv. & NRI, Bureau of Investment Promotion, Rajasthan September 2015 Resurgent Rajasthan

Resurgent Rajasthan - Why Invest in Rajasthan

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Page 1: Resurgent Rajasthan - Why Invest in Rajasthan

Commissioner Inv. & NRI, Bureau of Investment Promotion, Rajasthan

September 2015

R e s u r g e n t R a j a s t h a n

Page 2: Resurgent Rajasthan - Why Invest in Rajasthan

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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

Page 3: Resurgent Rajasthan - Why Invest in Rajasthan

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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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Dedicated Industrial Zones

Japanese & Korean 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

► It houses known Japanese companies like Nissin, ACI Mitsui, Daikin and Mytex Polymer

► A total of 473 acre land has been allotted to 45 units at Neemrana wherein 37 units have already commenced their 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

► A similar exclusive industrial zone spread in approximately 263 acre is being developed at Ghiloth near Neemrana for Korean companies

Page 11: Resurgent Rajasthan - Why Invest 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

1

3

2

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

Page 17: Resurgent Rajasthan - Why Invest in Rajasthan

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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

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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

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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

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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.

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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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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

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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

Page 32: Resurgent Rajasthan - Why Invest in Rajasthan

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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

543 3

POSITION ATTAINED

Page 34: Resurgent Rajasthan - Why Invest in Rajasthan

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 35: Resurgent Rajasthan - Why Invest in Rajasthan

THANK YOU!