Message

I am happy that the Associated Chambers of Commerce and Industry of India (ASSOCHAM) is organizing the Summit “Invest Jharkhand: Paradise for Investor” on 28th October,2015 in Ranchi

The summit will give an opportunity to the potential investors to look at the vast business opportunities associated with Jharkhand. The investment friendly policies of the Government of Jharkhand are the main driver of huge investment. I am sure that the summit will provide a platform for the investor to initiate dialogue for starting new ventures in the state.

ASSOCHAM, is thankful to “Resurgent India limited” who has brought out the knowledge paper which highlights the prevailing status and a long term vision for growth in the state.

I am also thankful to Dena Bank to accept our request to be the Banking Partner for this initiative of ASSOCHAM.

My sincere thanks to Federation of Jharkhand Chamber of Commerce & Industries (FJCCI) to accept our request to support this initiative as supporting chamber and extend necessary help in making this occasion a big success.

My heartiest congratulations to Mr. U.K. Joshi, Director and his colleagues for taking this initiative to project Jharkhand as an emerging state.

I wish the summit all the very best.

D.S. RawatSecretary General

ASSOCHAM

Message

Jharkhand is located in the eastern part of country. The abundant natural resources, favorable policy incentives and location-specific advantages of Jharkhand support investments in sectors, notably so in mining and metal extraction, engineering, iron and steel, and chemicals. At current prices, the gross state domestic product (GSDP) of Jharkhand for 2013-14 stood at INR 172.7 (000 Crores). This implies a CAGR of 12.2 percent over 2004-05. The tertiary sector led the sector contribution at about 45 percent in 2012-13. In order to provide a fillip to the industrial sector, the Jharkhand government recently announced a host of measures. The reflection of the success of implementation came through in the World Bank Status Report of Implementation – Jharkhand ranked 3rd (26 spots up as compared to last year) with over 63 percent compliance. Some of the recent initiatives have been listed below:Post formation of new government in December 2014, several initiatives have been taken to improve the industrial climate in the state. These include the launch of new industrial policy-15, introduction of single sign-on system and other ease of doing business reforms, digitization of land records and dedicated steps towards skill development and investment promotion in the state.Given the incentives offered to the investors under the industrial policy and state’s strategic advantages, the state is uniquely placed to attract substantial investments in the industrial sector. However, infrastructure and urban development requires a massive up gradation. With the renewed thrust on PPP, the movement is in the right direction but this will require sustained efforts over a period of time to deliver concrete results. In this report, we present a detailed overview of the state and the measures taken by the state government to promote the industrial sector. We hope the report helps address and prioritize the issues concerning the industry and define way for discussions shaping the investment vision for the future.

Mr. Jyoti Prakash GadiaManaging Director

Resurgent India Ltd.

Contents

Message from the desk of Sh. JP Gadia

Jharkhand State Overview 1 - 7

♦ Economic Profile and Performance

♦ Investment Profile

♦ Infrastructure Profile

Government Policy and Regulatory Framework 8 - 14

Industry Overview 15 - 16

Key Industry Challenges 17 - 20

Conclusion 21 - 27

About RESURGENT INDIA 28 - 29

1Invest Jharkhand

JHARKHAND STATE Overview

Invest Jharkhand 1

1.1 GenericProfileJharkhand is India’s 28th state and came in being in 2000. Jharkhand is located in the eastern part of India. The state shares its borders with West Bengal in the

east, Uttar Pradesh and Chhattisgarh in the west, Bihar in the north and Odisha in the south.

Some of the prominent cities/ industrial areas in the state are Jamshedpur, Dhanbad, Bokaro, Deoghar and Hazaribagh. The state is richly endowed with natural resources especially forests and mineral resources. The state accounts for almost 40 percent of the nation’s mineral reserves. Forests account for about 28percent of its geographical area. It has one of the richest deposits of coal and iron ore in the country. Other mineral resources like; graphite, magnetite, gold, silver, bauxite, uranium, mica, fireclay and copper are also found in the state.

A quick fact-sheet of the State of Jharkhand is enumerated below:

Fact Sheet Parameters JharkhandGeographical spread (Sq. Kms.) 79,714

Capital RanchiPopulation (million) 32.9

Population Growth (Decadal) 22.4%Percentage of National Population 2.7%

Population Density per sq. km. 414Districts 24

Members of Lok Sabha 14Members of Rajya Sabha 6

Source: http://164.100.47.5/Newmembers/memberstatewise.aspx, IBEF Report 2015

http://164.100.47.132/LssNew/Members/Statewiselist.aspx , Census 2011 Website

The state has a population of about 32.9 million according to the Census 2011, with 22.4% growth rate. The population gender split though balanced, the literacy ratio is heavily skewed towards the male population.

Fact Sheet Parameters JharkhandPopulation (million) 32.9

Male Population 16.9Female Population 16.0

Sex ratio/1000 948Literacy rate % 66.4

Male % 76.8Female % 55.4

Source: Census 2011 Website

Jharkhand – An Introduction

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1.2 EconomicProfileAt current prices, the Gross State Domestic Product (GSDP) of Jharkhand stands at INR172.7 (Cr. 000s) in 2013-14. The GSDP grew at a CAGR of 12.5 per cent from 2004-05 to 2013-14. The growth in GSDP over previous year stood at a staggering 13.9 per cent.

The Net State Domestic Product (NSDP) at current prices, of Jharkhand was about INR 150.3 (Cr. 000s) in 2013- 14. The NSDP grew at a CAGR of 12.2 per cent between 2004-05 and 2013-14. The state’s per capita NSDP in 2013-14 was INR 46,131compared with INR 18,510 in 2004-05. Per capita NSDP increased at a CAGR of 12.2 per cent between 2004-05 and 2013-14.

Source : CSO State Domestic Product and other aggregates, 2004-05 series

Performance by SectorsThe main driver of the growth in GSDP has been the tertiary sector, which displayed a healthy CAGR of 11.37 percent in real terms between 2004-05 and 2012-13. The secondary sector, on the other hand, grew at a much slower pace at 3.07 percent per annum during the same period. Tertiary sector growth is backed by all its components but banking and insurance, communication, storage and public administration, in particular, achieved notable growth in this period – by more than 14 percent per annum (CAGR) in the period 2004-05 to 2012-13. On the other hand, the relatively dismal performance of the secondary sector was caused especially by registered manufacturing and a negative growth in electricity, gas and water supply. Within the primary sector, both agriculture and allied sub sector coupled with mining and quarrying achieved satisfactory growth.

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As per the Economic Survey of Jharkhand 13-14, tertiary sector leads the sector contribution at about 45 percent in 2012-13. The share has grown considerably from 32.9 percent in 2004-05. The share of the primary sector which includes agriculture and animal husbandry, forestry, fishing, mining and quarrying, contributed about 24.6 per cent in 2012-13, a marginal decline from 25.8 percent of GSDP in 2004-05. The share of secondary sector declined from 41.2 percent in 2004-05 to 30.3 percent in 2012-13. The figure however, is still much ahead of National average of about 25%, indicating inherent industrialization strength of the state.

Share of Sub-Sectors 2004-05 2008-09 2012-13Manufacturing 33.68 21.39 21.69

Construction 6.06 7.77 8.21

Electricity, Gas and Water Supply 1.49 1.15 0.44

Agriculture and Allied 14.92 18.27 13.28

Mining & Quarrying 10.92 11.08 11.35

Transport, Storage and Communication 6.02 8.36 7.23

Trade, hotels & restaurants 10.12 11.71 13.00

Banking & Insurance 2.30 3.49 4.55

Public administration 3.92 4.25 6.49

Real estate, ownership of dwellings and business services 3.54 3.49 5.42

Source: Jharkhand Economic Survey, 2013-14

1.3 InvestmentProfileAccording to the Department of Industrial Policy &Promotion (DIPP), the cumulative FDI inflows from April 2000 to March 2015, amounted to US$ 50 million. Real estate, mining and construction emerged among the major contributors to economic growth of the state

1.4 Inter-State Comparison of Key Economic IndicatorsHaving detailed Jharkhand at an absolute level, it becomes important to understand how the state stacks to national average and other counterparts on key social and economic indicators.

In terms of attributes, the choice has been kept as a mix of hard fiscal parameters like NSDP, Per Capita NSDP and Number of PPP projects to more social ones like Sex ratio etc. A brief comparison captured below:

Source : Census India Government Website, DIPP Website March 2015, Census2011.co.in, Infrastructureindia.gov.in, IBEF Report, DEA *includes Bihar

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InfrastructureProfileInfrastructure has been covered under two separate heads: a) Physical (Transport, Telecom, Industrial etc.) b) Soft (Education, Health) A brief overview of the two is captured below:

PhysicalInfrastructure:Power: Jharkhand has a total installed capacity of 3,050 MWs (including indigenous generating Capacity and allocation from Central Generating Stations as well as Private). The capacity from central plants forms about 10 percent of the total installed capacity for the State and the Capacity from private plants forms about 47 percent of the total installed capacity.

As per the 2001 census (conducted a few months after the state formation), electricity reach was pegged at a meager 24 percent for Jharkhand. In rural areas, it stood worse at 10 percent. The state has seen much improvement over the years in Power infrastructure. The production and coverage has increased and T&D and AT&C losses have declined. Now about 40 percent of the households and 26.03 percent of the rural households of the state have access to electricity and the consumption per capita is 552kwh (kilowatt per hour). Though they are still less than the national levels, which are 67.90 percent,44 percent and 720 kwh respectively.

Railways: The total length of railway lines in Jharkhand is 2,181.93 km. The dedicated freight corridor (Eastern Corridor Extension to Kolkata under the Dedicated Freight Corridor Corporation of India) will pass through the state and is expected to benefit the industry significantly. The Eastern Freight Corridor is expected to be completed by 2018.

The state has extensive goods-handling facilities available at Ranchi, Bokaro, Dhanbad and Jamshedpur stations as well as ore-loading facilities at Kiriburu, Lohardaga and all Central Coalfields Ltd (CCL) coal mines.

As per a recent IBEF Research Report, the state has proposed investments of up to US$ 195.7 million for developing new rail links under the 12th Five Year Plan (2012-17). During 2013-14, nine new tracks, one gauge conversion, twelve doubling and three electrification projects were taken up by the Indian Railways in the state. The project, estimated to cost US$ 84.5 million, is expected to augment the railway network by 1,507 kilometers.

Roadways: There are over 12 National Highways running through Jharkhand -- NH-2, NH-6, NH-23, NH- 31, NH-32, NH-33, NH-75, NH-78, NH-80, NH- 98, NH-99 and NH-100. The state’s industrial activity is primarily concentrated in an area south of NH-2, which connects Kolkata with Delhi via Jharkhand. The state has inherited a poor road infrastructure -- The present road density of roads (excluding NHs and Rural Roads) in the state is 86.26 kms which is almost half the national figure of 182.4 kms. In order to fill this gap around 7660 kms of roads would have to be included in Road Construction Department (RCD) and would be required to be brought to the level of State Highways (SH)/ Major District Roads (MDR) Category.

Road Type Length (in kms.)National Highways 2391

State Highways(SH), Major District Roads (MDR) & other PWD Roads

6877

Rural roads including classified ruralroads & Minor District Roads 24300 (Approx.)

Source: Jharkhand Economic Survey, 2013-14

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Airport: The state has one domestic airport, located in the state capital, Ranchi. It has direct links available from Ranchi to all prominent cities. Department of Civil Aviation of the state government plans to acquire land to develop 12 airstrips in the Chatra, Simdega, Lohardaga, Godda, Pakur, Latehar, Sahebganj, Jamtara, Saraikela, Garhwa, Koderma and Khunti districts.

Cargo handled by the Ranchi airport has increased from 2,491 tonnes in 2013-14 to 3,496 tonnes in 2014-15. During the same period, aircraft movement has increased from 6,587 in 2013-14 to 7,642 in 2014-15

Telecom:The Jharkhand telecom data is not separately collected by the Telecom Regulatory Authority of India (TRAI). It collects data circle wise, and Jharkhand falls in the Bihar circle. The available latest data of telecom infrastructure captured below:

TelecomInfrastructure May 2015Wireless Connections 71,619,146Wire-line connections 347,309Broadband (Mar 2014) 23,00,000

Source: IBEF Research Report 2015, Includes Bihar data

IndustrialInfrastructure: Besides the original Industrial town of Jamshedpur, several other industrial areas have been developed in the state based on the location of mineral reserves and related down-stream industries.

The state government has identified 56 clusters including refractory cluster at Dhanbad; mini cement cluster at Ramgarh; bell metal cluster at Bishnugarh, Hazaribagh and Khunti; steel processing cluster at Giridih; hard coke cluster at Dhanbad; and forging and hand tool manufacturing cluster at Bhendra.

Jharkhand has three industrial area development authorities with headquarters at Adityapur, Bokaro and Ranchi. Another such development authority is being formed at Santhal Pargana. These authorities are responsible for acquisition of land and development of infrastructure facilities such as roads, drainage, parks, water supply and public utilities within their jurisdiction.

Parameters AdityapurIndustrialAreaDevelopmentAuthority(AIADA)

RanchiIndustrialAreaDevelopmentAuthority

(RIADA)Controlled area (acres) 33970 1524Allotted plots (No) 1365 682Units established (No) 893 540

Major industriesHeavy and light engineering, ferro-casting, chemicals, plastic and rubber, forging and mineral based units.

Engineering, mines and mineral-based units, chemicals, electrical and electronics, metallurgy, casting and rolling, plastics and rubber.

Source : IBEF Research

Soft Infrastructure Education: Jharkhand, a young state born in 2000, ranked very low among all the states in India in terms of literacy in 2011, with only three other states placed below it. The state literacy rate was about 7 percentage points lower than the national average – led sharply be female literacy rates.

Invest Jharkhand6

Further, there is a huge variation in literacy levels across districts. Some districts such as Ranchi, Dhanbad, Purbi Singhbhum, etc. perform well in terms of both male as well as female literacy, while some districts such as Pakur and Sahibganj fare poorly on both counts

There has also been considerable expansion in schooling facilities in the state. As per the Jharkhand Economic Survey report 2013-14, Jharkhand has a total of 40,177 governments, 841 government aided schools and 1443 private aided schools. Out of estimated total of 6.64 million children in the age category 6-14 years in Jharkhand, 6.36 million children are enrolled (in all classes).

Class completion has been a problem in Jharkhand. As per the Economic Survey of the state, the retention rate at the elementary cycle stands at 47.33% in 2013-14, implying a drop-out rate of 52.67% over the elementary cycle, or an annual average drop-out rate of 6.58%. According to DISE 2012-13 data, the rate of transition from the primary to upper primary level now stands at 78.79%.

Health: Jharkhand has 330 primary health centres (PHCs), 3,958 sub-centres, 14 district-level hospitals, 10 sub-division hospitals, 32 referral hospitals, 188 community health centres (CHCs) and six medical colleges. The broad objectives of the state’s Department of Health include enhancing maternal and child healthcare, stabilizing population growth and improving nutritional status.

HealthStatistics(2013-14) JharkhandBirth Rate 25

Death Rate 6.9Infant Mortality Rate 39

Source: IBEF Research

The Jharkhand government has drafted a policy for establishment of super-specialty hospitals, medical and nursing colleges and paramedical institutes. The state government has built a 500-bed hospital at Ranchi. In 2014-15, the state government has built 208 sub centres, 39 primary health centres and four community health centres. In the 2015-16 budget, the state government has announced plans to build five community health centres, 25 primary health centres and 50 sub centres.

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Government Policy and Regulatory Framework

Over the past few months, the state government has taken several initiatives to improve the industrial environment

in the state. These initiatives include offering dedicated incentives and concessions to the industry, introducing ease of doing business reforms, efforts towards infrastructure and skill development and investment promotion in the state. These have been detailed below -

1. Incentives and concessions- In order to strengthen the industrial environment in the state, the government launched the industrial policy, 2012. The new industrial policy aims at developing Jharkhand as a favorable destination for investors so as to boost manufacturing activity and bring sustainable

industrial development in the state. Some of the incentives and concessions offered by the industrial policy-2012 have been mentioned below-

a. Subsidies – The state government provides investment subsidies under CPIS (Comprehensive Project Investment Subsidy) scheme to industries for investments made in plant & machinery, pollution control equipment, environment friendly alternative power generation equipment and employee welfare. The maximum admissible subsidy under the scheme is 5 crores. CPIS is a one-time subsidy and the payment is staggered over a 5 year

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time-period with 20% disbursements made each year.

b. Stamp duty and Registration fee – The state government offers reimbursement of 50% on the amount spent towards stamp duty and registration fee for purchase of land from raiyats / acquired through consent award (lessee of IADA). This benefit is applicable to manufacturing units which provide direct employment to at least 100 people. However, industries engaged in mineral extraction activities such as mining, crushing, transportation, washing etc, are not entitled for such benefits.

c. Quality certification support –The state government offers financial assistance for improvement of quality of the industrial units in the state. The industrial units which obtain quality certification from Bureau of Indian Standards (BIS) or any other internationally recognized institutions are entitled to avail reimbursement of 50% of the expenditure incurred, up to maximum of INR 2 lakh.

d. Patent Registration support - The State govt. provides financial assistance of 50% of the expenditure incurred, up to a maximum of INR 2 lakh per patent. Out of this amount, a maximum of INR 1 lakh may be paid towards expenditure incurred in filing of patent, attorney fees, patent tracking etc. and up to maximum of INR 2 lakhs on final acceptance of the patent. The aim of this scheme is to encourage industrial units to successfully file patents based on their original work / research.

e. VAT subsidies – The state government offers subsidy on VAT to all industries in the state. Industry wise eligibility for availing this incentive has been detailed below -

i. Large and Mega Industries are eligible for reimbursement of 50%

of the Net VAT paid per annum, up to a maximum of 75% of total fixed capital investment for 5, 7 and 9 years depending on the location of the units

ii. Apparel, Textile, Food Processing, Automobiles, IT/ITES and Bio-Tech units are eligible for reimbursement of 75% of Net VAT paid per annum, up to a maximum of 75% of the total fixed capital investment for 5, 7 and 9 years depending on the location of the units.

iii. MSMEs are eligible for reimbursement of 60% of Net VAT paid per annum, up to a maximum of 100 % of total fixed capital investment made, for 5, 7 and 9 years depending on the location of the units

iv. Handloom, Sericulture, Handicraft, Khadi and Village Industry products shall be eligible for reimbursement of 75% of the NET VAT paid per annum up to a maximum of 100% of the total fixed capital investment for 5, 7 and 9 years depending on the location of the units

f. Incentives for development of Industrial Parks / Industrial Area / Estate - The state government bears up to 50% of cost, up to maximum INR 10 crore, incurred on development of common infrastructure of industrial parks / industrial estates / private industrial area. Such infrastructure will mainly include road network, drainage, drinking water and power transmission etc.

g. Incentive for captive power plant - Industrial units setting up captive power plant shall be exempted from the payment of 50% of electricity duty for a period of five years from the date of its commissioning.

h. Industry specific incentives- The state

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government also offers exclusive incentives to industries in IT/ITES, textile and apparel manufacturing, agro-food processing sector and tourism. IT/ ITeS have emerged as one of the key focus areas for the state government. Besides offering a slew of incentives to IT/ITeS units, the state recently allotted 202 acre of land for development of IT Park, 52 acres of land for IIIT, 10 acre for C-DAC and 5 acre of land for an academy for e-governance.

Besides the launch of industrial policy-2012, the state government also announced launch of four fresh policies to boost manufacturing and investment in the state. These new policies are - Feed Processing Policy, Jharkhand Food Processing Policy, Jharkhand Industrial Park Policy and Jharkhand Export Policy.

2. Ease of doing business – As per the latest World Bank rating on ease of doing business, Jharkhand has emerged in third position, after Gujarat and Andhra Pradesh. This is a significant improvement from 29th position last year. This was accomplished on account of the various initiatives taken by the state across several areas including setting up a business, allotment of land and obtaining construction permit, complying with environment procedures, complying with labour rules, obtaining infrastructure related utilities, registering and complying with tax procedures, carrying out inspections and enforcing contracts. Some of the steps taken by the state government to promote business have been mentioned below -

a. Launch of single window portal - Last month, the state government launched a single-window portal for furthering ease of doing business in the state. This portal, namely, www.advantage.jharkhand.gov.in, integrates portals of various government departments, and hence a user doesn’t need to sign in multiple times. This portal, also called the ‘Single Sign-On’ facility is a step ahead of single-window system in terms

of comfort provided to investors. This platform aims to reduce the scattered mechanism which was earlier in place for setting by any business in the State, by bringing all investment-related works online by corralling all departments into a single platform. This feature is currently available for using services of the industries department, commercial tax department, labour department, industrial area development and the Jharkhand State Pollution Control Board, and it is expected that other departments shall be included soon. This portal is a one-stop service for investors planning to invest in Jharkhand from within the state as well as other parts of the country and abroad. The main activities of this portal include:

i. Providing information on approvals required for starting and operating a business, procedures, application forms and its timelines as well information about relevant departments from which approval is to be obtained

ii. Making online application for the listed approvals through single sign-on/ common login for availing services of the integrated departments

iii. Follow up action and coordination between the Government departments and investors

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iv. Facilitation & Coordination for implementing Project in Jharkhand

b. Digitized land bank system which provides online information to investors on available locations to set-up business - The state government has taken special measures to address the issue of land availability for industrial use in the state. The Department of Revenue and Land Reforms in the state has developed a system in association with National Informatics Centre (NIC) to reform land record system in Jharkhand. This software, known as ‘Vasudha’ provides an updated district-wise record of government land, fringe forestland, and other categories of land. This software helps the govt. / investors to know the extent of land available in each district, and this information can further be leveraged to target / attract potential investors to the state. Currently, Jharkhand land records are available online for a few districts & tehsils of the state i.e. Ranchi, Bokaro, Hazaribagh, Dumka, Lohardaga and Ramgarh. More districts are expected to be added soon. Apart from this, the state also framed Land Acquisition Rules in March and allowed greater decentralization of power. For example, a collector may now process requisition of up to 12,500 acres of land and sanction projects of up to INR 25 crore.

c. State development council to facilitate overall development in the state including setting up of new industries- Recently, the government approved the proposal for setting up state development council. This council will be chaired by the chief minister and will draw up policies for 5 years for the overall development of the state and will focus on specific areas including setting up new industries, ameliorate poverty and provide employment, and others.

d. Nodal officer to be constituted to help

investors in setting up industries- In accordance with the state policy on ease of doing business, the state government is planning to appoint a nodal officer to interact with entrepreneurs willing to set up industries in the state. This step has been taken to address investor concerns that the state government does not act as facilitation agency to create business environment in the state

e. Overall, the state government has taken measures to do away with age old and complicated clearances, bringing things online, simplifying tax regime and bringing transparency in terms of decision making on government desks.

3. Infrastructure – Efforts are being made by the State Govt. to provide quality infrastructure to investors like all-weather road, uninterrupted power supply, adequate water, connectivity through railways etc. Some of the notable initiatives have been mentioned below -

a. The state government is focusing on boosting the existing infrastructure including road, rail and power networks to steer in the next stage of reforms and attract more investment. As part of this strategy, the state is aggressively pushing for private investment across several areas including power, telecom, roads, airports, logistics, etc.

b. The government is planning to build monorail project on a stretch of 25 km on Ranchi’s two busy corridors — Dhurwa to Kutchery (13km) and Namkum to Piska More (12km) — and has 33 stations. The project will come up on public-private-partnership (PPP) mode and will be funded by the state and Japan International Cooperation Agency. The state’s contribution is estimated to be INR 4,500 crores. Apart from this, the government is planning to implement projects worth INR 5,500-crore in urban and rural road infrastructure in PPP mode.

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c. State government has taken crucial steps to address the power problem in the state. Initiatives have been taken to resolve the issue of delayed payments and high transmission & distribution losses in state run power stations. Payments to power stations have been regularized and strategy has been developed to set up new power plants and revamp the existing ones to increase the generation capacity to 4,000 MW so as to meet the overall demand from the state.

d. State Govt..is working towards establishing optical fiber linkage throughout the State. Efforts are being made to provide broad band connection to all block headquarters and panchayats. Towards this end, optical fiber linkage has already been established for about 2200 km by various telecom companies.

e. Road Construction Department, GoJ and IL & FS Ltd have jointly set up Jharkhand Accelerated Road Development Company Ltd. (JARDCL) for improvement of 1500 km road of the State on BOT (annuity) basis.

4. Public Private Partnership –Infrastructure development is the backbone of an economy. Developed infrastructure accelerates the development of the state, having direct impact on industrialization and investment. Traditionally, the state has witnessed low levels of PPP activity in infrastructure projects. Off late, however sectors like road and urban development have drawn more attention towards PPP. The draft Industrial Policy, 2012 has laid down significant emphasis on implementation of the concept of PPP.

In order to enhance private participation in infrastructure projects, Jharkhand Infrastructure Development Corporation Ltd (JINFRA) and IL&FS (Infrastructure Leasing

& Financial Services) have entered into an agreement to jointly finance infrastructure projects in PPP mode.

Key Development projects under PPP include:

5. Skill development – The government realizes the importance of a skilled labor in industrial development. In this regard, the state runs several programs / courses to improve the employability of manpower in the state.

a. Early this year, an MOU was signed between Jharkhand Skill Development Mission Society and National Skill Development Authority to give impetus to skill development programme in Jharkhand. The objective of the MOU is to improve the employability skills of the youth undergoing skill development training in the State. Through this collaboration, the government has set an ambitious target of skilling around 5 lac youth in the state. A separate roadmap had also been developed towards the achievement of the same.

b. The state government recently announced the setting up of a Skill Development University in order to

Project Name Sector Project Cost (USD Mn) Stage

Birsa Bus Stand cum Commercial

complex at RanchiTransport 12.61 Under

Construction

Common Effluent Treatment

(Adityapur) Project

Water Sanitization -- Under

Construction

Hazaribagh-Ranchi NH-33 Road

ProjectTransport 144.19 Completed

Ratu Road Commercial

ComplexTransport -- Operation

Road Upgradation (Ranchi Rargaon-Jamshedpur) (NH-

33) Project

Transport 245.63 Under Construction

Roadways between Barhi –

HazaribaghTransport 66.03 Under

Construction

Second Adityapur Toll Bridge over River Kharkali

Transport 9.12 Under Construction

Source : IBEF Research

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revamp the ongoing skill development mission in the State. In addition to this, the government also introduced ‘Skill Development Courses’ in the State Government-run schools from 2016-17 academic session. With this the government is targeting to benefit approximately 1.10 crore youth population of the State.

c. The government is considering setting up of a nodal department for skill development, which would consolidate the needs of the industry and the different government departments and develop need-based training programs so that the skilled workforce can be employed in State-based companies.

6. Investment promotion – The state government has set up several offices to promote and develop industries in the state. Some of them have been mentioned below -

a. Department of Industries - The objective of this department is to accelerate economic development by facilitating investments in industries and infrastructure, developing required human resources for industrial employment, and supporting small and rural industries, artisans and craftsmen.

b. Department of Energy - The department formulates plans, policies, acts and rules, and undertakes developmental activities. It is responsible for the expansion of generation, transmission and use of electricity. The department has different corporations, authorities and undertakings such as Jharkhand State Electricity Board (JSEB), Tenughat Vidyut Nigam Limited, Jharkhand Renewable Energy Development Authority and the Electricity Licensing Board, under its supervision.

c. Industrial Area Development Authority (AIADA) - The Adityapur Industrial Area is situated in the district of Seraikela Kharsawan, near Jamshedpur. AIADA controls an area of about 53 sq. miles. It has so far developed 1,365 plots and

142 industrial sheds. There are 1,102 operating units in the AIADA-controlled area, which provide employment to about 27,900 persons. AIADA provides land, water, electricity and technical expertise to assist in the setting up of units in the industrial area.

d. Bokaro Industrial Area Development Authority (BIADA) - BIADA is located in Bokaro Steel City, which has several small-scale industrial (SSI) units. BIADA provides most of the industrial supplies for SAIL’s Bokaro steel plant, which is the catalyst for the industrial units in BIADA.

e. Ranchi Industrial Area Development Authority (RIADA) - RIADA controls industrial areas spread over the nine districts of Ranchi, Hazaribagh, Koderma, Palamu, Garhwa, Lohardagga, Khunti, Ramgarh and Gumla. A total of 20 industrial estates have been developed by RIADA. RIADA provides land, water, electricity and technical expertise to assist in setting up industries.

f. Jharkhand State Electricity Board (JSEB) - After the formation of Jharkhand in 2000, JSEB was formed as a separate entity from the Bihar State Electricity Board (BSEB). Apart from generating electricity, JSEB is involved in transmission and distribution throughout the state.

Cost of Doing Business in Jharkhand: The State offers a low cost destination for investors. Cost incurred over key industry inputs have been mentioned below -

Cost Parameter Cost EstimateLand (per sq ft.) INR 900 – INR 1800

Labour cost (minimum wages per day) INR 180- INR 300

Hotel costs (per room per night) INR 4,500 – INR 9,000

Power cost (per kWh) Commercial:INR 5 Industrial: INR 7

Water (per 1,000 gallons) INR 12

Source : IBEF Research

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Key Approvals Required: Below is the list of approvals required to set up business in the state. Some of approvals have been integrated via the single sign-on system launched by the state government last month.

Approvals/Clearances Department

Allotment of land/acquisition of land/change of land use

Department of Industries, Government of Jharkhand, and District Collector

Approval of building plan Industrial Area Development Authority and Local Bodies

Releaseofpowerconnectionandconsentforsettingupcaptivepowerplant Jharkhand State Electricity Board (JSEB)

Release of water supply State Water Supply Board and Industrial Area Authority

Registration as a factory Chief Inspector of Factories

Sales tax registration Revenue Department, Government of Jharkhand

Registration under Trade Union Act Labour Department, Government of Jharkhand

Registration under Shops and Establishments Act Labour Department, Government of Jharkhand

Registration under Industrial Disputes Act Labour Department, Government of Jharkhand

Registration under Minimum Wages Act/EmployeeStateInsuranceAct Labour Department, Government of Jharkhand

Source : IBEF Research

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Industry Overview

Jharkhand Industry SectorJharkhand is home to mega, large, medium, and small industries. As of 2014-15, the state accounted for 38 mega industries, 123 large & medium industries and 43,517 micro and small industries. Majority of these industries are concentrated around Tatanagar, Bokaro, Jamshedpur and Ranchi. Industries in Jharkhand are largely mineral based and capital intensive.

There are four Industrial Areas in the State – at Ranchi, Bokaro, Jamshedpur and Dumka. The most vibrant of the four Industrial Areas is that in Jamshedpur. This is the oldest Industrial Area in the State and with 1135 working units

AuthorityNo. of

industrialareasfunctioning

No. of Working

unitsRIADA, Ranchi 17 398BIADA, Bokaro 4 517AIADA, Jamshedpur 1 1,135SPIADA, Dumka 6 35

Source- Jharkhand economic survey, Government of Jharkhand

Industries established in Jharkhand include Mining and mineral extraction, Engineering, Iron and steel, Chemicals, Handloom, Food and beverages, Plastics and rubber, Printing and packaging, Tourism, Automotive and Cement. Some of the key industries have been detailed below -

Invest Jharkhand 15

Engineering: Major factors driving this industry in Jharkhand include abundant availability of raw material (iron and steel, aluminum, copper and other metals and non-metals) and large supply of industrial labour. Several heavy engineering companies located in the state produce equipment and provide turnkey and consulting services to the existing metal and mining industry. Bokaro and Jamshedpur are the major engineering clusters in the state. Some of the key players include McNally Bharat Engineering Company Ltd, TRF Ltd, Timken India Ltd and Mecon Ltd.

Chemicals and Fertilizers: The chemical industries in Jharkhand produce a wide range of chemicals such as caustic soda, dye and pigments and industrial and medical gas. Principally, the chemical industry in the state serves other manufacturing units in the region and some part of eastern India. Major chemical clusters are located in Sahibgunj, Bokaro, Dhanbad, Hazaribagh and Deoghar districts. Key players in this segment include Aditya Birla Chemicals (India) Ltd, Tata Pigments Ltd and BOC India

Cement: Jharkhand is one of the largest producers of cement in the country with annual production of approximately 1.5 million tonnes. The state is home to four large cement plants. The major cement companies in Jharkhand are ACC Ltd, Jaypee Group and Lafarge India.

Automotive: The automotive industry in Jharkhand includes original equipment manufacturers as well as auto component production units. The auto components produced range from simple items such as nuts and bolts to complex ones such as shafts, radiators and axles. The state has an auto cluster in Adityapur and one auto cluster is coming up near Jamshedpur. The Adityapur Industrial Development Area is one of the largest auto ancillary hubs in the country. More than 600 auto ancillary industries, including auto components units, have been set up subsequently at Jamshedpur and Adityapur to cater to the needs of automobiles companies. The construction of an automobile vendor park is underway. It is being established under PPP or private mode by mega automobile manufacturing units in the state.

Mining and Metals: Jharkhand is a mineral rich state accounting for about 40 % of India’s total mineral reserves. The state has abundant reserves of iron-ore, coal, limestone, graphite, granite, mica and copper. The state is major producer of iron-ore and steel in the country. During 2014-15, Jharkhand accounted for 16.8 per cent and 14.3 per cent of the total iron ore and steel production in the country. Some of the key players in this industry includes Tata steel, Jindal Steel & Power, Hindalco Industries and Steel Authority of India.

Invest Jharkhand16

Key Industry Issues

Despite holding 40% of India’s mineral wealth, industrialization has not made adequate progress in the state in the

last 15 years of its creation. Some of the major factors impeding industrial development in the state have been listed below.

1. Bureaucratic hurdles and unfavorable government polices

a. Issues in getting clearances / licenses for setting up projects – The issue of statutory clearances and land availability has remained a major cause of concern

among the investors. Many investors cite bureaucratic hurdles as major reason for not investing in the state. In spite of bagging several MoUs in in steel, power, cement and other sectors in excess of INR 2,75,000 crore between 2003 and 2008, only a few proposals culminated in operational projects. The availability of land for setting up new industries is the most critical issue considering legislations in existence such as Santhal Pargana Tenancy Act and Chottanagpur Tenancy Act and also in the light of the Land Acquisition Act, 2013.

Invest Jharkhand 17

During the 12th five year plan period (2012-17), MOUs amounting to INR 21,565 crore have already been signed, of which, only NR 891.64 crore has been invested so far, that is, more than INR 20,000 crore is yet to be invested. This poor record of implementation of MOUs is on account of delays in getting mandatory approvals / clearances especially environmental, including forest clearance from the Central Government.

Sector No. of Units

Investment (in Rs. Cr.)

Capacity

Steel 3 586.43 0.23 MTCement -- -- --Power 1 220 20 MVAuto 1 85.21Other

(Beverages) -- -- --

Other (Aluminum) -- -- --

Total Investments 5 891.64 --

Source : Department of Industry, Government of Jharkhand

In order to address this concern, the government introduced the single window clearance system which promises to provide time-bound clearances to industry proposals with minimum paperwork. The single window clearance system facilitates entrepreneurs in obtaining online clearances from Industrial authorities, Commercial Taxes and Labour department of Jharkhand. Apart from this, the government has also taken some important steps to address the shortage of land. In the first phase, the Government is planning to purchase land for setting up industries in most of the districts. In the next phase the government will purchase private lands directly from the raiyats to build the much required land bank. In addition to this, the government has introduced several other reforms to ease the setting up process for industries.

For example, Green industries such as food processing, sericulture, renewable energy and others are not required to obtain environment clearance. The state is also in the process of introducing the system of self-certification and deemed approvals to save time in starting up industries. However, a majority of the investors have adopted a wait and watch policy to see if this brings any significant improvement.

b. Issues in leasing of plots- Entrepreneurs face problems in acquiring plots within the industrial areas due to the absence of a uniform rate for allotting lands. As per them, there is a lack of transparency in land allotments by the industrial authorities and the lease rates are also hiked from time to time. In order to address this issue, the state government recently introduced a regulatory framework, namely the Industrial Area Land Allotment Regulations 2015, to ensure transparent land allotments in its three industrial areas in Ranchi, Bokaro and Adityapur in Jamshedpur. This new regulation will define space for specific sector-based units and one uniform rate for allotting lands.

2. Low levels of urban development hinders industrial development in the state - According to the 2011 census, only 24.05 per cent of people in Jharkhand live in urban areas, with a large percentage of the urban population concentrated in few cities such as Ranchi, Dhanbad, Bokaro and Jamshedpur. The state has lesser urbanization than the national average (31 percent). Urban development is seen as an important and positive indicator of economic development as the urban areas contribute a significant share to the state GDP. Though several schemes / missions have been launched by the central and state government to bring urban development in the state, the achievements so far have been limited. Major factors deterring urban development in the

Invest Jharkhand18

state are lack of institutional arrangements for greater private sector involvement, inadequate availability of finance, low levels of modernization and poor maintenance of existing infrastructure.

3. Poor connectivity and shoddy roads is another reason of low investor interest in Jharkhand. Roads are an integral part of the transport system. Quality roads are an utmost necessity for progress and development. Good road infrastructure leads to improved mobility by reducing in travel time and vehicle operating cost and thereby aids in the overall industrial and socio-economic development of the state. The present road density (length of road per 1000 sq. kms) (excluding NHs and Rural Roads) in the state is 86.26 kms which is almost half the national figure of 182.4 kms. Even in terms of length of roads, Jharkhand with a road length of 26,277 kms fares low in comparison to such states with the better road networks as Uttar Pradesh, Maharashtra, West Bengal and Karnataka. The Road construction department in the state faces several issues ranging from inadequate finance to lack of skilled manpower. The cost of construction and maintenance of road is high as a high percentage of the road network falls in the industrial and mining belt, which is prone to rapid deterioration. In addition to this, construction and maintenance of roads is difficult in naxal affected areas in the state.

However, the state government has stressed its commitment to build quality road network that would connect villages and important cities in the state. To this end, the govt. has already allocated INR 300 crores to be spent on building roads in this fiscal year.

4. Lack of skilled manpower, poor literacy levels and low workforce participation (WPR) has affected industrial growth in the state - Low literacy level has hampered industrial development in the state. According to 2011 census, both male and female literacy rates in the state were lower than the national

average. There is a wide gap of between the literacy rates for All-India level (74.07%) and Jharkhand (67.63%). Poor literacy has culminated in low work force participation in productive economic activities. The WPR (percentage of economically active people in the population) for Jharkhand is abysmally low at 35 per cent. Approximately 40% of the total workforce in Jharkhand is engaged in agriculture and allied activities and other low productivity occupations. The remaining workforce is employed in construction, trade, hotel & restaurant, manufacturing, other social services and mining & quarrying. It has been witnessed, that several technical and industrial houses in the state, recruit and train individuals for technical skills due to the lack of availability of technically skilled labor.

Though the government has taken important steps by implementing several skill development schemes, employment generation and welfare programs, which have also achieved some success, the government still needs to undertake considerable efforts to improve employment and skills level of the people so as to attract industries in the state.

5. Non transparency is also one of the factors impeding industrial growth in the state. This is more rampant around land issues. Limited supply of free hold land, coupled with restrictions imposed on transfer of tribal land and lack of clarity in land records are the some of the factors. Investors are reluctant to acquire land to set up business due to the high risks involved in the absence of proper land records. Non transparency in land acquisition has severely hampered the state’s industrialization process and sullied its image.

However, the government is increasingly leveraging technology and digitization to curb corruption in service delivery processes. In addition to this, the government has also set up grievance lines to address corruption

Invest Jharkhand 19

related issues in government departments. Other measures liked a law permitting confiscation of properties of those found guilty of corruption and conversion of the state vigilance bureau into an empowered anticorruption bureau are also expected to curb corruption menace in the state.

6. Low PPP investment in infrastructure – Jharkhand has witnessed relatively low PPP activity in infrastructure projects in spite of the government’s emphasis on implementation of PPP to drive industrialization in the state. Infrastructural investments not only accelerate growth, but have strong linkage effects with other complementary inputs such as human capital, access to finance, and adoption of new technology. For instance, improved connectivity brings economic and social development to the connected regions.

7. Low investor interest due to law and order issues - This problem is the biggest concern for the investors in the state. High incidence and frequency of extremist

violence jeopardizes investor interest to invest in the state Many industrialists have cited apprehensions of a less-than-secure environment in state. This issue not only affects the development of social and economic infrastructure in the state but also puts a burden on the state budget, as significant expenditure is incurred in countering the problem and fighting for a better law and order situation.

However, the state government is taking steps to address the security situation in the state. Some of them include setting up a 24-hour highway patrol, with police pickets at every 20 km.

The government formed in December 2014 has taken action to address the above issues and fast track development in the state. The government has taken a slew of measures in the field of labour, land and other sectors to help the investors. Some of notable initiatives include steps taken towards enhancing the land bank for industrial use, improving law and order situation, and bringing ease of doing business with the

Invest Jharkhand20

introduction of a single-window clearance policy.

Conclusion

Despite being a mineral rich state, the pace of industrial development in Jharkhand has not been true to its potential, even after 15 years of its creation. The new government which came into power in December 2014 has taken several initiatives in the last 10 months to kick

start development in the state. Some of the key issues faced by the industry are around obtaining clearances for starting projects, lack of skilled manpower, high incidence and frequency of extremist violence, poor road infrastructure and corruption in government departments.

However, in the recent past the state government has taken several initiatives towards addressing the issues plaguing the industry and improving the overall investor sentiment. In this regard, the government has introduced structural reforms in several government departments including commercial taxes, labour and employment, Jharkhand State Pollution Control Board, urban development, revenue and land reforms, registration, and others. Apart from this, several crucial steps have been taken towards enhancing the land bank for industrial use, improving law and order situation, and bringing ease of doing business with the introduction of a single-window clearance policy.

As a result of the recent efforts, few investors have already evinced interest to invest in the state. However, a majority of the investors are adopting a wait and watch policy to see significant improvements before they take their investment decisions. Continuing effort in this direction

Invest Jharkhand 21

by the government will go a long way in garnering investor interest and facilitate overall development of the state.

Jharkhand was carved out of Bihar in 2000 as the 28th state of the Indian Union. The capital of the

state is Ranchi. Jharkhand is located in the eastern part of India. The state shares its borders with West Bengal in the east, Uttar Pradesh and Chhattisgarh in the west, Bihar in the north and Odisha in the south.

Jharkhand is one of the richest mineral zones in the world and boasts of 40 per cent and 29 per cent of India’s mineral and coal reserves respectively. The state is richly endowed with minerals, such as bauxite, mica, graphite, quartz, iron,

copper, and magnetite. Due to its large mineral reserves, mining and mineral extraction are the major industries in the state.

In 2015, Jharkhand accounted for about 40 per cent of India’s total mineral reserves. Jharkhand

stands first in coal reserves, second in iron ore reserves, third in copper ore reserves and seventh in bauxite reserves in the country.

Jharkhand is the only state in India to produce coking coal, uranium and pyrite. With 26 per cent of the total iron ore (hematite) reserves, Jharkhand ranks

second among the states. During 2014-15, the state accounted for 16.8 per cent of the total iron ore produced in India. Jharkhand also has an abundance of water, energy reserves,

Exploring JharkhandThe Land of Opportunity

Mr. U. K. JoshiDirector, ASSOCHAM

Introduction

Invest Jharkhand22

forests, and fertile land, which can help the state become one of the most developed states in the country.

About 80 per cent of the rural population of the state depends on agriculture. Rice is the major food crop of the state, covering 80 per cent of the cropped area.

The state’s industries enjoy a unique location-specific advantage as it is close to the vast market of eastern India. It is closer to the ports of Kolkata, Haldia and Paradip which helps in transportation of minerals.

Jharkhand offers a wide range of fiscal and policy incentives to industries, under the Industrial Policy, 2012. The state also has policies for IT and special economic zones (SEZs) offering sector-specific incentives, as well as the Jharkhand Energy Policy 2012 which aims to supply reliable and quality power in an efficient manner at a reasonable price.

Strengths of Jharkhand• Jharkhand is the first in production of COAL,

MICA, KYANITE and COPPER in India.

• 33% of the country’s Coal reserves in Jharkhand.

• Jharkhand is the sole producer of Coking Coal, Uranium & Pyrite.

• Jharkhand has large reserves of numerous other minerals like Iron ore, Apatite, Bauxite, Chromium, Felspar, Graphite, Hematite, Mica and Quartzite.

• Well-established Industrial base of long-standing comprising reputed business houses.

• Jamshedpur and Bokaro have been at the vanguard of TQM movement from an All-India perspective.

• Multinationals such as Timken & Cummins have introduced state-of-the-art operating practices which have been fed into the local production environment.

• TATAs 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

ExportAdvantage: » Jharkhand is located close to Kolkata,

Haldia & Paradeep Ports

» Ideal location for EOUs interested in emerging markets of South East Asia, because of freight advantage

» Several measures being taken to channelize exports

» An Inland container depot has been set up at Jamshedpur

• Logistical advantage in catering to markets within and adjoining states of West Bengal, Orissa, Bihar & Chhattisgarh. The combined population of Jharkhand and these four adjoining states is about 247.5 million, which is nearly 25% of the country’s population.

• Ranchi, the capital - is well connected by AIR, RAIL & ROAD.

• Entire state has proper Rail & Road network. They are being augmented in a big way.

• Industrial towns have excellent Rail & Road connectivity with major market places in the country.

• Prime Minister’s dream of Golden Quadrangular Super Highway passes through Jharkhand, very close to some of the cities, viz. Dhanbad, Hazaribagh, Bokaro, Giridh, and Barhi. These cities are well connected to the super highway via branch roads.

Invest Jharkhand 23

• FlourishingsupportingSSI’scovering:

» Advanced Heat Treatment

» World Class Forgings

» Metal Presses catering to Export market

» Precision Castings

» Rubber Components

» Sophisticated Machine shops

» Auto Ancillaries

» Steel Plant recycling / Downstream industries

• Top most Metallurgical ResearchInstitutions in the State

» NML Jamshedpur

» SAIL R&D

» Institute of Foundry & Forge Technology

» Tata Steel R&D Centre

• Excellent man-power base with reputedtechnicalinstitutionsinthestate

» XLRI Jamshedpur

» Indian Institute of Coal Management Ranchi

» Indian School of Mines Dhanbad

» Birla Institute of Technology Ranchi

» National Institute of Technology Jamshedpur

» Management Development Centres and Technical Training Centres set up by large business houses

» BIT Sindri

» A number of Polytechnics, and numerous computer & other skill enriching training setups

» New private Engineering colleges

sanctioned

» Adequate water resources, moderate climate, fertile and bio-diverse land provides immense scope for Hydel Power generation, Horticulture and Floriculture

State Government InitiativesThe government of Jharkhand has been making significant efforts to maximize the inflow of investment in the state. Many incentives and policies have been developed and put in place by the government to attract investors. The basic idea of these policies is to augment those industries that utilize the forest, agricultural, mineral, and other resources of the state. The government has a vision to generate employment for its people, improve their quality of life, and thus catalyze the economic development of the state.

The state government is making efforts to ensure development of infrastructure in the state. The state is located very close to the port cities of Kolkata, Paradeep, and Haldia. This provides an additional edge to the state’s connectivity. The expansion of infrastructure of the state has further given rise to more investment opportunities in the state. These opportunities are the development of industrial parks and growth centers, establishment of telecom infrastructure, and construction and upgrading of roads and airports.

The government of Jharkhand has announced a number of policies to attract investment in the state. The policies have laid the groundwork for major industrial development in the state. Various schemes and incentives are being offered to investors in the state.

The Industrial Policy has been formulated to ensure timely completion of infrastructure related projects, enhance productivity, and generate employment opportunities. The policy also encourages growth of small and cottage industries in the state.

The long-term vision of the policy is to make Jharkhand the first choice of investors, encourage

Invest Jharkhand24

economic activities to attract capital inflow in the state, boost export of items to other states, simplify administrative procedures, and bring about legal reforms to make investing easier, push for R&D in order to increase productivity, and promote participation of the private sector in the industrialization of the state.

The Information Technology (IT) Policy is also another important policy. This policy has been designed to make the state a preferred destination for IT investment. It also aims to enhance the IT exports of the state, promote IT services in the regional language, set up state-of-the-art IT infrastructure in the state, and computerize government departments.

The Special Economic Zone (SEZ) policy has been designed to provide a setup for the establishment and operation of SEZs. The SEZs offer a liberal environment for foreign investments.

Invest in JharkhandInvestment in Jharkhand is advantageous due to attractive features, such as a proactive administrative system, richness of minerals, skilled manpower, a number of supporting small-scale industries, reputed technical and educational institutes, and a wide consumer market. Some of the potential sectors for investment in the State are:

Information Technology: The Government considers IT as an agent capable of transforming the State into knowledge-based society. It has resolved to make Jharkhand an IT powerhouse and a front runner in the IT revolution. To attract investments in the IT sector, the State Government has provided special incentives such as exemption from environmental clearance, self-certification for purposes of compliance with certain Acts, rebate in the cost of land allotted to an IT Industry, etc. Further, an Information Technology (IT) policy has been designed to make the state a preferred destination for IT investment. It also aims to enhance the IT exports of the state, promote IT services in the regional language, set up state-

of-the-art IT infrastructure, and computerise government departments in the State.

Agriculture Sector: Jharkhand has a varied agricultural product-base that supports a host of agro-based industries. The state’s soil and climatic conditions also support the cultivation of ornamental plants, mushrooms, spices and tea. The cultivable land resources of the state have good potential for higher production of horticulture and forest products. The soil is young and has high capacity of fixation of humus. The forest provides sufficient biomass to feed its soiling.

PowerSector:Availability of coal in abundance makes Jharkhand an ideal state for setting up thermal power plants. With the abolition of freight-equalisation, there is tremendous cost advantage in setting up these plants at the coal pit itself. Further, the demand for Power both within the state and the nearby states will increase manifold, with several new investments in manufacturing setups coming up. The Government of Jharkhand has taken several initiatives for the development of this sector. It has signed a memorandum of understanding (MoU) with the Government of India as a token of its commitment to the reforms in the power sector. Rural electrification has been accorded top priority. The work on renovation and modernisation of existing power generating stations has already commenced. The State is attracting private investment in the industry for its further growth.

Tourism Sector: The Jharkhand Government has initiated various steps to attract investment in tourism sector. The State offers several incentives for the provision of certain tourist facilities by the private investors which includes hotels & motels, tourist resorts, camps & facilities for adventure tourism, aerial ropeway, amusement parks, etc. The tourism policy of the State aims at making Jharkhand as one of the most preferred destination for tourists, and to ensure accelerated development of tourism related infrastructure. Further, Ministry of Tourism provides Central Financial Assistance for projects which are prioritised in consultation

Invest Jharkhand 25

with the State Government subject to availability of funds and adherence to guidelines under various schemes.

Mining&Mineralbasedindustries: Jharkhand is a mineral-rich state with 40 per cent of India’s total mineral reserves. The important minerals available in the State are coal, iron ore, limestone, copper ore, bauxite, pyrite, china clay, kyanite, fine clay, dolomite, graphite, bentonite, soap stone, quartz sand and silica sand. The Government of Jharkhand has been making all efforts to attract investment into the sector which include simplification of the procedures with respect to grant of mining leases, provision of certain relief to make mining activities easier, adoption of state of art technology in mining, etc. Further, the State Government would encourage joint venture projects with State Mineral Development Corporation (SMDC) especially in the field of mining. Private sector would be encouraged to take up mining activities in the State.

Steel Industry: Steel is an inseparable part of human civilization and is essential to the

country’s economic development. Today, India is developing as an emerging giant in the field of Iron and Steel and the National steel policy envisages production of 110 million tons of steel by 2020. The demand for steel is increasing within the country with all round acceleration in industrial activity. Jharkhand has total reserve of 3218.08 million tons hematite areas accounting for about 30 per cent of the national reserves. Large public and private sector industrial units including TATA Steel, Bokaro Steel and Usha Martin among others have utilized immense opportunities in the steel sector in Jharkhand and have triggered an industrial revolution in the process.

Sericulture: Silk is a fine strand of fiber that is a solidified secretion produced by certain caterpillars to encase themselves in the form of cocoons. Jharkhand has a large sericulture base. The state is one of the leading tassar (a non-mulberry silk) producers in the country.

Investment opportunities also exist in hand loom and handicraft, khadi and village industries, and forest-based industries.

Invest Jharkhand26

ConclusionJharkhand has immense potential for investment due to its large mineral deposits, skilled labour force, and responsive administrative set up. It has a well-established industrial base comprising of reputed business houses. The State offers innumerable investment opportunities across various sectors. It is recognized as a region of great potential.

EvolutionofValueCreatorASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. Having in its fold more than 400 Chambers and Trade Associations, and serving more than 4,00,000 members from all over India. It has witnessed upswings as well as upheavals of Indian Economy, and contributed significantly by playing a catalytic role in s haping up the Trade, Commerce and Industrial environment of the country. Today, ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the technology driven cyber age of ‘Knowledge Based Economy’. ASSOCHAM is seen as a forceful, proactive, forward looking institution equipping itself to meet the aspirations of corporate India in the new world of business. ASSOCHAM is working towards creating a conducive environment of India business to compete globally. ASSOCHAM derives its strength from its Promoter Chambers and other Industry/Regional Chambers/Associations spread all over the country.

VISIONEmpower Indian enterprise by inculcating knowledge that will be the catalys t of growth in the barrier less technology driven global market and help them upscale, align and emerge as formidable player in respective business segments.

MISSIONAs a representative organ of Corporate India, ASSOCHAM articulates the genuine, legitimate needs and interests of its members. Its mission is to impact the policy and legislative environment so as to foster balanced economic, industrial and social development. We believe education, IT, BT, Health, Corporate Social responsibility and environme nt to be the critical success factors.

MEMBERS–OURSTRENGTHASSOCHAM represents the interests of more than 4,00,000 direct and indirect members across the country. Through its heterogeneous membership, ASSOCHAM combines the entrepreneurial spirit and bus iness acumen of owners with management skills and expertise of professionals to set itself apart as a Chamber with a difference. Currently, ASSOCHAM has more than 100 National Councils covering the entire gamut of economic activities in India. It has bee nespecially acknowledged as a significant voice of Indian industry in the field of Corporate Social Responsibility, Environment & Safety, HR & Labour Affairs, Corporate Governance, Information Technology, Biotechnology, Telecom, Banking & Finance, Company Law, Corporate Finance, Economic and International Affairs, Mergers & Acquisitions, Tourism, Civil Aviation, Infrastructure, Energy & Power, Education, Legal Reforms, Real Estate and Rural Development, Competency Building & Skill Development to mention a few. INSIGHTINTO‘NEWBUSINESSMODELS’ASSOCHAM has been a significant contributory factor in the emergence of new- age Indian Corporate, characterized by a new mindset and global ambition for dominating the international business. The Chamber has add ressed itself to the key areas like India as Investment Destination, Achieving International Competitiveness,Promoting International Trade, Corporate Strategies for Enhancing Stakeholders Value, Government Policies in sustaining India’s Development, Infrastructure Development for enhancing India’s Competitiveness, Building Indian MNCs, Role of Financial Sector the Catalyst for India’s Transformation. ASSOCHAM derives its strengths from the following Promoter Chambers: Bombay Chamber of Commerce & Industry , Mumbai; Cochin Chambers of Commerce & Industry, Cochin: Indian Merchant’s Chamber, Mumbai; The Madras Chamber of Commerce and Industry, Chennai; PHD Chamber of Commerce and Industry, New Delhi and has over 4 Lakh Direct / Indirect members. Together, we can make a significant difference to the burden that our nation carries and bring in a bright, new tomorrow for our nation.

ABOUT ASSOCHAM THEKNOWLEDGEARCHITECTOFCORPORATE INDIA

Invest Jharkhand 27

ASSOCHAM Corporate Office5,SardarPatelMarg,Chanakyapuri,NewDelhi-110021

Phone:+91-11-46550555(HuntingLine)•Fax:+91-11-23017008,23017009

E-mail:assocham@nic.in•Website:www.assocham.org

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AUSTRALIAChief RepresentativeASSOCHAM Australia ChapterSuite 4, 168A Burwood RoadBurwood | NSW | 2134 | AustraliaTel: +61 (0) 421 590 791Email: yateen@assochamaustralia.orgWebsite: www.assochamaustralia.org

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JAPANChief RepresentativeASSOCHAM Japan ChapterColors of India Center1-39-3 Ojima Koto-Ku,Tokyo 136-0072JapanEmail: international@assocham.comtceindo@hotmail.com

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Invest Jharkhand28

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banking. We offer independent advice on capital raising, mergers and acquisition, business and financial restructuring, valuation, business planning and achieving operational excellence to our clients.

Our strength lies in our outstanding team, sector expertise, superior execution capabilities and a strong professional network. We have served clients across key industry sectors including Infrastructure & Energy, Consumer Products & Services, Real Estate, Metals & Industrial Products, Healthcare & Pharmaceuticals, Telecom, Media and Technology.

In the short period since our inception, we have grown to a 100 people team with a pan-India presence through our offices in New Delhi, Kolkata, Mumbai, and Bangalore. Resurgent is part of the Golden Group, which includes GINESYS (an emerging software solutions company specializing in the retail industry) and Saraf& Chandra (a full service accounting firm, specializing in taxation, auditing, management consultancy and outsourcing).

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Information and opinions contained herein have been compiled or arrived by Resurgent India Ltd from sources believed to be reliable, but Resurgent India Ltd has not independently verified the contents of this document. Accordingly, no representation or warranty, express or implied, is made as to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information and opinions contained in this document.

Resurgent India ltd accepts no liability for any loss arising from the use of this document or its contents or otherwise arising in connection therewith.

The document is being furnished information purposes. This document is not to be relied upon or used in substitution for the exercise of independent judgment and may not be reproduced or published in any media, website or otherwise, in part or as a whole, without the prior consent in writing of Resurgent. Persons who receive this document should make themselves aware of and adhere to any such restrictions.

RESURGENT INDIA LIMITEDDEBTIEQUITYIADVISORY

Invest Jharkhand 29

Gurgaon903-904, Tower C,

Unitech Business Zone, Nirvana Country,Sector 50,Gurgaon – 122018

Tel No.: 0124-4754550; Fax No.: 0124-4754584

KolkataCFB F-1, 1st Floor, Paridhan Garment Park,

19 Canal South Road, Kolkata - 700015Tel No.: 033-64525594 Fax No.: 033-22902469

MumbaiQuest Offices Private Ltd

The ParineeCrescenzo, 1st FloorOpp. MCA, G-Block, B.K.C, Mumbai-400051

Tel No.: +91-22-33040667/668Fax No.: +91-22-33040669

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2nd phase, Bangalore –560 078Karnataka

Tel No.: +91 80 2657 0757

Chennai13, Building No. 1, 2nd Floor,

1st Street, Balaji Nagar, EkkaduthangalChennai, - 600032, Tamilnadu

Tel No.: +91 9094 0022 80

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