Compendium of Investment Opportunities in Northern States

Confederation of Indian Industry

Invest North 2013

A CII-KPMG study

Compendium of Investment

Opportunities in Northern

States

August 2013

© 2013 KPMG Global Services Private Limited, a company incorporated under the laws of India and a member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.1

Economic indicators

■ The economic growth in the northern region has outperformed the growth in rest of

the country

■ GDP composition is very much reflective of the GDP composition of the entire

country with services sector accounting for 57 percent in FY12

Strong economic growth, surpassing the national growth in recent years , FY08-FY12 (CAGR - Northern region: 8.1 percent; India: 7.7 percent)

GDP growth rate (percent)*GDP growth rate (percent)*

Dominant services sector with high growth rate of 9.5 percent in FY12

GDP composition (percent in FY12)**GDP composition (percent in FY12)**

17.2

25.857.0

Agriculture

Industry

Services

*GDP data at constant FY05 prices (data as of August 2013) latest available**GDP composition at constant FY05 prices (data as of February 2013) latest available for GDP break-upSource: MOSPI

8.28.4

8.0

9.2

6.9

9.3

6.7

8.69.3

6.2

0.0

2.0

4.0

6.0

8.0

10.0

FY08 FY09 FY10 FY11 FY12

Northern region All-India



Economic indicators (cont.)

FDI in northern region recorded a CAGR of almost 18 percent during FY09-FY13

FDI (INR billion)FDI (INR billion)

Delhi and Haryana lead the pack

Per capita income (INR’ 000)Per capita income (INR’ 000)

96

476

148

388

186

0

50

100

150

200

250

300

350

400

450

500


■ The northern region has witnessed significant FDI since FY09, though there have

been occasional dips due to global factors

■ Five out of nine states/UTs in the region have a greater per capita income than that of

the entire country

Sources: Ministry of Commerce and Industry; MOSPI

Note: Rajasthan and Chandigarh figures have not been included as they are not available

0

30,000

60,000

90,000

1,20,000

1,50,000

State India



Business indicators

Consumption spending (INR)Consumption spending (INR)

Rising credit off-take indicates increased financial intermediation

Bank deposit and credit off-take (INR trillion) Bank deposit and credit off-take (INR trillion)

■ High consumption makes the region an attractive market for companies

■ Business indicators show a positive trend across segments, producers, consumers

and financiers

Sources: National Statistical Organisation; RBI

Six of the eight states have higher monthly per capita consumption expenditure (MPCE) than all India average

2,362

1,552 1,237

1,746

1,916

1,879

1,421

2,095

0

500

1,000

1,500

2,000

2,500

Delh

i

J&

K

UP

Uttara

khand

Hary

ana

Punja

b

Raja

sth

an

Him

achal P

radesh

Average MPCE (INR) All India average MPCE (INR)

6.97.9

10.512.1

13.9

11.312.8

15.0

17.019.1

0

5

10

15

20

25

Dec'08 Dec'09 Dec'10 Dec'11 Dec'12

Credit Deposit



Infrastructure indicators

Uptrend in power generation, which recorded a CAGR of 6.9 percent during FY08-FY13

Power sector (billion units)Power sector (billion units)

■ Power capacity and road network has been continually growing, which will support

economic growth

196.1 201.9224.7 237.9

258.4273.2

0

50

100

150

200

250

300

FY08 FY09 FY10 FY11 FY12 FY13

Generation (BU)

Note: Data for road network is latest availableSources: Central Electricity Authority; Ministry of Road Transport and Highways

Road sector (Km)Road sector (Km)

Road length in northern region recorded a CAGR of 6.5 percent, more than twice the growth rate recorded by All-India of 3.0 percent

8,05,887 8,69,984 9,13,648

35,71,510 36,82,439 37,90,342

0

10,00,000

20,00,000

30,00,000

40,00,000

FY09 FY10 FY11

Northern region All India



Demographic and social indicators

About 42 percent of northern region population lives in urban areas compared to all-India average of 31 percent

Except two states, UP and Rajasthan, all other states have a birth rate lower than All-India’s average of 21.8 percent

Birth rate (percent) Birth rate (percent)

■ Vast population base across income groups presents business opportunities across

a broad spectrum

■ States/UTs in the region have made significant progress in improving the standard of

living for people

17.5 15.0

27.8

18.9 16.5 21.8 16.226.2

17.8

0

5

10

15

20

25

30

Delh

i

Chandig

arh

UP

Uttara

khand

Him

achal

Hary

ana

Punja

b

Raja

sth

an

J&

K

Birth rate All India birth rate

Sources: Planning Commission; SRS Bulletin

Rising urban populationRising urban population

2.5 2.8

72.3 77.7 69.5 65.2 62.5 75.190.097.5 97.3

27.2 22.3 30.6 34.8 37.5 24.910.0

0

20

40

60

80

100

120

Delh

i

Chandig

arh

J&

K

UP

Uttara

khand

Hary

ana

Punja

b

Raja

sth

an

Him

achal

Pra

desh

Rural population (%) Urban poulation (%)



Advantage north: ahead of the curve

North India’s advantage galore ranges from all counts:

ProductionConsumption

TradeGovernment support

Demography etc.Policy and fiscal incentives

(State specific industrial and other policies

providing tax exemptions etc.) Developing world class Developing world class

infrastructure

(Delhi’s IGI airport, DMIC, Metro rail, Global

corridor along Kundli-Manesar-Palwal expressway etc.)

Strong consumer base

(Growing urban

population and higher

per capita consumer

spending)

Abundant natural resources

(crops, fruits, water, minerals etc.)

Higher education for improved employment

(IIT Roorkee, IIM Rohtak,

University of Petroleum &

Energy Studies etc.)

High economic growth rate

(Northern region

recording a higher

growth than all-India

average in recent years)

Fast growing services sector

(Services sector in northern region recorded growth of

9.5 percent in FY12)Well-developed

tourism

(UP, Rajasthan, Uttarakhand and J&K account for over 24 percent of domestic tourist

visits. J&K, Delhi, UP, Rajasthan and Himachal

account for over 30 percent of foreign tourist visits)

Sources: MOSPI; Press articles



Delhi: a snapshot

Delhi is the national capital of India,

popularly known for its heritage sites.

The state is among the pioneers for

introducing privatization in power

distribution and has emerged as one of

the leading cities in well-developed

infrastructure. Though its economy is

mainly driven by the service sector, the

UT also houses several industries, with

more than 100,000 manufacturing units.

Sources: MOSPI; DSIIDC; Press articles; Find Data website, www.findthedata.in, accessed on 12 August 2013



Delhi: a snapshot

Overview

Economic indicators

■ GSDP*: State GDP recorded a CAGR of 9.9 percent during FY08-FY13

■ Sector-wise CAGR**: Agriculture (9.2 percent), Industry (8.1 percent), Services (12.2 percent)

■ Per capita income, FY13*: INR120,414 (USD2,213.5)

Note: 1 USD = INR 54.4 for FY13*At constant FY05 prices (data as of August 2013)**At constant FY05 prices (data as of February 2013)

GSDP (INR billion) and growth rate (percent)*

GSDP composition (percent)**

1.1 0.718.4 14.1

80.5 85.2

0

20

40

60

80

100

120

FY05 FY12

Agriculture Industry Services

Geographic and demographic indicators

■ Geographical area (sq km): 1,483

■ Total population, 2011 census (million): 16.8

■ Population density, 2011 census (persons per sq km): 11,297

■ Literacy rate, 2011 census (percent): 86.3

1,5581,698

1,8562,027

2,21012.9

9.09.3 9.2

9.0

0

500

1,000

1,500

2,000

2,500

0

2

4

6

8

10

12

14


Source: MOSPI



State’s sector specific strengths

Priority sectors

■ Large skill base and good infrastructure make it ideal place for knowledge based industries

■ Government’s emphasis on skill development (via proposed Delhi Skill Development Mission and Delhi Knowledge Development Foundation) to assist existing units to upgrade to high-technology and cater to knowledge based industries

■ Emphasis on setting up of ‘Centre of Excellence’ to promote innovation and entrepreneurship in high technology and knowledge based sectors

Knowledge based industries

Sources: Government of Delhi; Press articles

Real Estate and Construction

■ Accounts for 19 percent of state’s GDP

■ Delhi offers a profitable investment owing to its well-developed infrastructure, growing economy and population

■ Key players: DLF, Unitech, Ansal API and Parsvnath

Banking and Insurance

■ Accounts for 26 percent share in state’s GDP

■ Home to most of the financial institutions offering a gamut of financial services

■ Key players: Life Insurance Corporation of India, State Bank of India, ICICI Bank, Kotak Mahindra among many others



Sector-wise opportunities ‒‒‒‒ Knowledge based industries

■ Knowledge based industries (KBI) refers to IT/ITeS, Education, Media, Biotechnology, R&D and Financial Services sectors

■ Delhi has the potential to transform into a knowledge-based economy supported by well-developed infrastructure, large skill base and increased penetration of telecom network

■ New Industrial Policy (2010-2021) proposes to develop an Electronic/Light Engineering

Park/SEZ to promote hardware and IT sector together

■ Some other policy proposals for cluster development include:

‒ Electronics and Light Engineering Park/SEZ

‒ Fashion Technology and Design Park

‒ Education and R&D hub

■ IT Park/SEZ in Shastri Park was set up by Delhi Metro Rail Corporation

‒ First block provides employment to 3,000 people

‒ The second block has been recently completed

■ An IT park is being developed in the National Capital Region (Noida), which will also have a World Trade Centre to promote international trade and commerce

Key enablers

Sources: Government of Delhi; Press articles; DMRC; DSIIDC



Sector-wise opportunities ‒‒‒‒ Knowledge based industries (cont.)

■ State government’s strong emphasis on the development of this sector:

‒ Government’s emphasis on skill development (via proposed Delhi Skill Development Mission and Delhi Knowledge Development Foundation) to aid existing units to graduate to high-technology and knowledge-based industries offers opportunities for investors

‒ Emphasis on setting up of ‘Centre of Excellence’ to promote innovation and entrepreneurship in high technology and knowledge based sectors

‒ Investment required in the areas of data processing and filtering

Sector opportunities

Sources: Government of Delhi; Press articles; DSIIDC; Company website



Sector-wise opportunities ‒‒‒‒ Pharmaceutical and Healthcare

■ Increased healthcare accessibility, positive regulatory intervention and improving infrastructure provides pharma companies with adequate access to clinical subjects, data on efficacy, safety of

prospective drug and compositions, which in turn, aids in clinical research and formulation development

■ Supportive government policies, accompanied with quick project approvals and fiscal incentives in the form of exemptions from excise duty and income tax and grant of capital investment subsidy to new establishments

■ Increasing awareness of healthcare among the masses also supports growth of pharmaceutical sector

Key enablers

Sources: Government of Delhi; First Pharmaceutical Census of India, FY11; Press articles


■ Diverse investment opportunities:

� R&D oriented facilities � Drug manufacturing facilities� Packaging/labeling� Transportation of drugs

� Oncology, neuro, respiratory, dermatology centers



Project-wise opportunities

Major Greenfield Industrial Infrastructure Projects in Delhi

■ Electronics component manufacturing

■ Systems design and testing

■ IT hardware manufacturing

■ Semi-conductor manufacturing

■ Gems and Jewellery manufacturing

■ Apparel testing and design

■ Bio-Technology

Multi-level Manufacturing Hub, Mundka-Ranikhera

■ Information Technology

■ IT enabled Services

■ Gems and Jewellery Design

■ Media

■ Business Services

Knowledge Based Industries Park, Baprola

■ Both the projects — Multi-level manufacturing hub at Mundka –Ranikhera and the Knowledge Based Industries Park at Baprola —are expected to complete by 2016

■ The Delhi Government expects to attract an investment of approximately INR700 billion and generate employment opportunities for nearly 300,000 people through these two projects

Sources: Government of Delhi, DSIIDC website, Press articles

■ Situated approximately 10 km away, MLM in Mundka-Ranikhera can emerge as complimentary development to KBI Baprola depending on the industry mix




Multi-Level Manufacturing Hub at Mundka - Ranikhera

■ Under the industrial policy for Delhi 2010-21, Delhi State Industrial and Infrastructure Development Corporation Ltd.

(DSIIDC) announced its plans to build a Multi-Level Manufacturing Hub at Mundka – Ranikhera to provide developed built, organized and ready to use work spaces and employment for skilled work force in Light and Services based industries in Delhi

■ The DSIIDC had acquired a land measuring 147 acres at Rani Khera on Rohtak road in Delhi

– The area has been classified as 610,000 sq meter under the built-up structure, 150,000 sq meter under the area under basement and 190,000 sq meter under the multi-storey parking

– The proposed site is located at an approximate distance of 1.5 Km from NH-10 (Delhi Rohtak road) which is adjacent to the main railway line to Rohtak

– In addition to the metro station of Mundka, the connectivity to the main-line city is through the outer ring road at an approximate 5-6 Km distance from the project

■ According to the Zonal plan of the Delhi Development Authority (DDA) , the land use of the project is for manufacturing (light and service industry)

■ The Mundka – Ranikhera hub would cater to electronics component manufacturing, systems testing, IT hardware manufacturing, gems and jewellery manufacturing, semi-conductor manufacturing and bio-technology

■ The tentative cost of the project has been estimated at INR30.98 billion

Sources: DSIIDC website; Press articles



Project-wise opportunities (cont.)

Knowledge Based Industries Park, Baprola

■ DSIIDC is developing KBI Park at Baprola in an area of approximately 72.37 acres

■ Estimated project cost is INR12 billion

■ Project has been proposed to be completed in two phases and is expected to be fully operational by 2016

■ Expected employment — Direct (100,000 jobs) and indirect (170,000 jobs)

■ Project would cater to specific needs of IT/ITeS industry, media, research and development, gems and jewellery and business services

■ It would provide housing units for KBI workers and housing for economically weaker section

■ Project site is expected to be connected with the nearest metro through mono-rail

■ As of April 2012, the KBI Park at Baprola had received all the required sanctions from various civic agencies including those of Municipal Corporation of Delhi (MCD), DDA and the Fire Department

Sources: Government of Delhi; DSIIDC website; Press articles



Haryana: a snapshot

Haryana has a rich industrial base, which is supported

by robust infrastructure. With its vast resource base,

the state has huge potential in the Agri-based sectors.

This large industrial base has resulted in higher

employment at 319 per 1,000 population than all-India

average of 242 per 1,000 population.

Since, one-third of Haryana falls under the National

Capital Region, the state has been able to attract

sizable investments. The new Industrial Policy 2011

provides the right impetus to strengthen the base of

the manufacturing sector besides knowledge-based

and high-tech industries.

Besides, the state is well known for its handloom

exports, Panipat being the largest exporter in India.

Source: Find Data website, www.findthedata.in , accessed on 12 August 2013; Government of Haryana; Press articles



Haryana: a snapshot (cont.)

Overview


■ Geographical area (sq Km): 44,212

■ No. of districts: 21

■ Capital city: Chandigarh

■ Largest city: Faridabad


■ Population density, 2011 census (persons per sq Km): 573


Note: 1 USD = INR 47.9 for FY12*At constant FY05 prices (data as of August 2013)**At constant FY05 prices (data as of February 2013)Sources: Census 2011 (http://www.census2011.co.in/census/state/haryana.html); Government of Haryana

Economic indicators

■ GSDP*: Increased at a CAGR of 5.6 percent during FY08-FY13

■ GSDP composition**: Shifted in favor of services sector


■ Per capita income, FY12**: INR62,927 (USD1,313)

GSDP composition (percent)**

19.6 19.5 17.2 16.6 16.7

31.6 30.2 30.1 29.7 28.7

48.8 50.3 52.7 53.7 54.6

0

20

40

60

80

100


Agriculture Industry



Highlights on key sectors of the state (cont.)

Automotive

■ State is preferred destination for many major automobile and auto component manufacturers

■ Highest producer of cars (36.3 percent), tractors (12.0 percent), two-wheelers (36.3 percent) and bicycles (8.0 percent)*

■ Important automobile centers are Faridabad and Gurgaon

IT/ITeS

■ One of the leading states in IT exports

■ Gurgaon is preferred centre for IT industry

■ Key players: IBM Global Process Services, TCS, Microsoft and Google

Agro-based

■ Biggest employment generator in rural parts of state

■ State Government promotes organic farming by providing financial assistance to farmers

■ Huge potential for dairy farming in rural areas; the state is one of the leading Indian states in milk availability

Real Estate

■ The Real Estate sector accounted for 9 percent of GSDP in FY12

■ State has witnessed rapid growth in residential, commercial and hospitality segments

■ Key players: DLF, Unitech, Ansal Housing & Construction

*Figures in the parenthesis indicate the production in Haryana as a percent of total production in IndiaSource: Government of Haryana, Rail Bandhu, June 2013




Mass Rapid Transport System (MRTS) between Gurgaon – Manesar - Bawal

Project details

■ MRTS project would cover approximately 130 Km connecting the Delhi Metro plans

■ Estimated project cost of INR631.77 billion

■ 57 stations on the route that would also connect to the Indira Gandhi International Airport

Project background

■ Government of Haryana approved creation of Special Purpose Vehicle (SPV) for project and asked for initiation of land acquisition (as of February 2013)

■ Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) floated a tender in February 2013 for selecting the consultant who in turn will prepare the detailed project report

■ Discussions have also been carried out with Japan International Cooperation Agency for loan by DMICDC

Source: Press articles




Convention Centre at Pachgaon Chowk

■ Project area under consideration is approximately 400 acres, of which 150 acres to be developed in initial phase

■ Estimated project cost: INR25 billion

■ Proposed development:

‒ 194,758 sq meter to be designed for providing space to around 1,850 exhibition stalls

‒ 22,500 sq meter reserved for convention centre

‒ 113,155 sq meter to be allocated for proposed hotel building.

‒ 12,000 sq meter to be earmarked for retail and commercial activities





Multi-Modal Logistics Hub in Rewari

Project details

■ Proposed area: 900 acres in Manesar-Dharuhera-Bawal industrial belt

■ Expected investment: INR19 billion

■ Facility expected to be the largest proposed logistic hub of Northern India

■ To be developed through a Special Purpose Vehicle of Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) and HSIIDC on a Public Private Partnership (PPP) model

■ As per DMIC plans, logistics hub would have a container freight station, custom-bonded and domestic warehouses, a railway sliding, a truck parking area, an auto zone and a container-handling facility

Project background

■ DMICDC and the Government of Haryana agreed in principle to form a joint venture for implementing the project

■ Techno-economic feasibility study approved by State Government and land acquisition process underway

■ Hub would be located in close proximity to Manesar, Dharuhera and Bawal to cater to their cargo requirements

■ In addition to Haryana, hub to be used by the NCR area, Punjab and Rajasthan for freight




Status of the industrial model townships in Haryana

Under development

■ Industrial model townships in:

� IMT Faridabad

Sources: Government of Haryana; CII

Developed and under expansion


� IMT Manesar

� IMT Rohtak

� IMT Bawal

� Industrial Estate, Barhi (Phase I)

� Industrial Estate Karnal

� Industrial Estate Rai (Phase I & II)

� Industrial Estate Barwala

� Growth Centre Saha

� Industrial Estate Yamunanagar

Planned and development work yet to

commence


� IMT Mewat at Sohana

Land under acquisition


� IMT Kharkhoda

� Industrial Estate Dharuhera

Land under acquisition and project to be developed under PPP model

■ Industrial model township in IMT Bidhal-Lath

� Township is located at Tehsil Gohana in Sonipat District, nearly 70 Km from Delhi spread over 3,400 acres



Investment opportunities

■ Industrial and Investment Policy 2011 of Haryana

encourages PPP based development of infrastructure projects majorly in industrial infrastructure, power, roads, bridges, health, tourism and education sectors

■ HSIIDC has initiated action for development of Industrial Model Township under PPP model at Gohana, Sonipat (3,400 acre)

■ Development of infrastructure in IMT at Kharkhoda (3,300 acre) started under PPP model

Industrial infrastructure

■ HSIIDC has several sites in various industrial estates for development of hotels, convenience shopping complexes, schools, hospitals etc.

■ HSIIDC plans to develop Vanijya Nikunj, a commercial complex in Phase-V, Udyog Vihar, Gurgaon, for which an area of about 17 acres has been earmarked. Process for project development is under progress

Commercial, residential and institutional projects

■ Opportunities:

‒ O&M of STPs/CETPs

‒ Water supply, distribution, treatment, recycling and management solutions

‒ Distribution of electrical power

‒ Security services

‒ Cleaning & solid waste

‒ Horticulture & plantation services

‒ Provision & operation of transport system within industrial areas

‒ Provision and management of Parking facilities

O&M services within industrial estates

■ Industrial plots allotted to

entrepreneurs for setting up of industrial projects in Industrial Estates and Industrial Model Townships developed by HSIIDC

■ Upto 10 percent of plots/sheds reserved in each industrial estate for allotment to NRIs/ PIOs and for units with at least 33 percent FDI in total investment

Industrial units within the industrial estates

Sources: Government of Haryana; CII



Investment opportunities (cont.)

■ Under the DMIC Project initiative,

investment regions at Manesar-Bawal & Kundli-Sonipat and Industrial regions at Faridabad-Palwal & Rewari-Hissar identified

■ Concept Master Plan of Manesar-Bawal Investment Region (MBIR) finalized and Development plan approved by State government

■ Area of 402 sq Km would be taken up for development initially

■ Area available for development would be 265 sq Km

■ Projected employment generation is 1.6 million and population size is 3.2 million

Manesar - Bawal Investment Region (MBIR)

■ Global City is proposed to be developed as Second Node in Haryana (after Manesar Bawal

Investment Region) in Gurgaon over 1,100 acres

■ DMICDC would provide knowledge support for designing and creating infrastructure

■ City would be designed by integrating smart community concepts ranging from water, power to integration of IT services in managing various public utilities

■ Project components would include exhibition & convention centre, high value innovation & knowledge industries, central business district and township etc.

Global City Project in Gurgaon

■ Feasibility study for IMLH project completed

■ Project would be implemented jointly with DMICDC through an SPV with 50:50 shareholding between HSIIDC & DMICDC at Bawal in Rewari district, over 1,000 acres

■ Various modules of project include EXIM container yard & CFS, domestic container yard & warehousing, auto zone and commercial area

■ Estimated project cost: INR30 billion and land is under acquisition

Integrated Multimodal Logistics Hub (IMLH), District Rewari

Delhi Mumbai Industrial Corridor (DMIC) Project initiative

Note: Fourth sub-section of DMIC project initiative, MRTS between Gurgaon-Manesar-Bawal, discussed as a separate slide in Project-wise opportunitiesSources: Government of Haryana; CII



Himachal Pradesh: a snapshot

Himachal Pradesh is regarded as one of the most

dynamic hill states of India which is high on human

development indices. The state has strong hydro-

power base because of its abundant water

resources and topography. It’s rich pool of semi-

skilled and unskilled labor makes it an attractive

investment destination.

In order to provide further impetus to the economy,

the state is working towards improving the core

infrastructure, making more land available for

prospective entrepreneurs, and improving the reach

of railways and promoting industrial growth

Sources: Find Data website, www.findthedata.in, accessed on 12 August 2013; Government of Himachal Pradesh



Himachal Pradesh: a snapshot

Overview

Economic indicators

■ GSDP*: State GDP recorded a CAGR of 5.1 percent during FY08-FY13

■ GSDP composition**: Contribution of services has increased in the past five years


■ Per capita income, FY13*: INR51,586 (USD948.3)

Note: I USD = INR 54.4 in FY13*At constant FY05 prices (as of August 2013)**At constant FY05 prices (as of February 2013)Source: MOSPI

GSDP (INR billion)*GSDP (INR billion)* GSDP composition (in percent)**GSDP composition (in percent)**

21.0 17.3 19.0 16.8 17.2

41.0 43.3 41.0 41.2 40.7

38.0 39.5 39.9 42.0 42.0

0

20

40

60

80

100



417 435468 489 516

3.8

4.4

7.6

4.5

5.4

0.0

2.0

4.0

6.0

8.0

0

100

200

300

400

500

600


GSDP (INR billion) Growth (%)



State’s sector specific strengths: Pharmaceuticals

■ Opportunities exist in:

‒ Drug manufacturing

‒ R&D‒ Packaging/labeling‒ Transportation

■ Solan offers good investment opportunities. Past performance reveals the preference for the district (in particular tehsils such as Baddi, Nalagarh and Parwanoo) to have attracted high investment

■ A Biotechnology Park (BTP) in Aduwal, Solan had been cleared for development under Public Private Partnership (PPP) mode. Park would be spread over 35 acres and will have an incubation center and an industrial cluster. It is expected that the project will witness investment inflow of INR2 billion and generate 500 new jobs

■ State also developed an Export Promotion Industrial Park at Baddi at an investment of INR200 million


Sources: First Pharmaceutical Census of India, FY11; Government of Himachal Pradesh; Press articles

State-wise Pharmaceuticals units in India (FY11)3,106

1,524

704 667 552 525 434 376 364 334

Himachal Pradesh is among the leading growth areas for the pharmaceutical (pharma) sector in the northern region. With 364 pharma units, state stood third after Delhi and Uttar Pradesh



State’s sector specific strengths: Tourism

■ State government proposed to upgrade civic infrastructure in major tourist destinations like Shimla, Manali, Dalhousie, Mcleodganj, Kasauli and Chailon on priority through funds raised from the Government of India (GoI) under the latter’s various schemes and through private investment

■ In order to increase the duration of the stay of the visitors/tourists, a special emphasis is being placed on development of activity-based tourism and opening up new sub destinations

■ GoI has sanctioned INR36.8 million for development of eco-tourism in the state. Of this amount, INR29.4 billion has been released for the following identified circuits

‒ Shimla( Mandli-Dodra Kwar)

‒ Kullu (Kullu-Manali-Kothi)

‒ Kinnaur (Shongtong-Pooh)

‒ Bilaspur (Shri Naina Devi Ji)

■ Other investment opportunities include:


Source: Government of Himachal Pradesh

Spas Resorts Ski slopesParking

areas

Entertainme

nt centres

Ropeways Developing

tourist sites

Recreational

centers

AirportsTourist

centresMultiplexes Golf course

Amusement

parks

Hotels Travel & tour

operations

Shopping

complexes



State’s sector specific strengths: Cement

District-wise limestone deposits (including cement), FY12 (in million tonnes)

Source: Annual Administration Report FY12, Department of Industries, Government of Himachal Pradesh

■ With total limestone deposit estimated to be 8,630 million tonnes as of FY12, Himachal Pradesh

offers immense potential for growth of cement industry

■ This is supported by growing demand emanating from development of infrastructure sector and towns/cities

1,020

1,250

10 20

1,120

410

1,650 1,650

1,000

500

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Bilaspur Chamba Kangra Kullu Mandi Sirmour Shimla Solan Lahaul Spiti

Key enablers



State’s sector specific strengths: Cement (cont.)

Capacity of proposed cement plants (in million tonnes per annum)

■ Opportunities exist in: ‒ Mining‒ Crushing/grinding

‒ Manufacturing‒ Packing

‒ Equipment providers‒ Transportation companies

■ Four upcoming cement plants in Mandi and Shimla have been proposed by companies like Lafarge, Dalmia, Harish Cements and India Cements

■ JP Associates is also in the process of setting up two new plants in Solan and Chamba

■ Total production capacity of the proposed plants is estimated to be 12.02 million tonnes per annum

2.8

2.0

1.3

2.0 2.0 2.0

0

1

2

3

JP Associates

(Solan Plant)

JP Associates

(Chamba Plant)

Harish Cements Lafarge India India Cements Dalmia

Source: Annual Administration Report FY12, Department of Industries, Government of Himachal Pradesh




State’s sector specific strengths: Agriculture and Horticulture

■ Diverse agro-climatic conditions enable growth of a variety of vegetables, fruits and cereals

■ High quality commercial production of apple, stone fruit, off-season and exotic vegetables

■ Low use of chemicals and pollution free environment

■ Diversification of farming through high value cash crops

Comparative advantages

■ Contract farming: Maize, potato, ginger, garlic, tea

■ Organic farming: vegetables and pulses

■ Support services, such as bio-fertilizers, organic manures, bio-pesticides, seeds for promoting organic farming

■ Private sector participation can increase in seed production

■ Setting up micro-propagation units

■ Scope for private sector participation in agri-clinics and agri-business centers

■ Advanced post-harvesting facilities including cold storages and units for producing packaging trays and cartons

■ Fruit processing units including alcoholic beverages and marketing services


Source: Government of Himachal Pradesh presentation




State Data Centre (SDC)

Project details

■ Department of Information Technology (DIT), Himachal Pradesh is building the SDC for the all government departments

■ SDC project would be setup through Public Private Partnership (PPP) model and selected agency would operate and maintain the same for five years

■ Status of project as on July 2013

‒ SDC is being built at Mehli; infrastructure put in place by Himachal Pradesh Housing and Urban Development Authority

‒ Request for Proposal floated for selection of SDC operator; pre-bid meetings held; corrigendum being prepared

‒ Go-Live of SDC: Six months post signing agreement with successful bidder

Project background

■ Under National e-Governance Plan, SDC identified as one of the core supporting components to consolidate services, applications and infrastructure to provide efficient electronic delivery of business services

■ These services can be rendered through common delivery platform supported by core connectivity infrastructure, such as State Wide Area Network and Common Services Centre connectivity extended down to Panchayat level

Source: Project Status, Department of Information Technology, Government of Himachal Pradesh




Identification of Tourism Circuits

Project details

■ For HP, three tourist circuits have been identified :

‒ Circuit 1: Chandigarh- Swarghat- Bilaspur- Mandi- Kullu- Manali- Manikaran- Naggar‒ Phase II, Circuit 1: Kalka- Berog- Solan- Shimla- Chail- Kufri- Naldara (private sector opportunity: INR250

million)‒ Phase II, Circuit 2: Kangra-Dharamshala-Palampur-Dalhousie- Chamba (private sector opportunity: INR500

million)

■ In Phase I, study estimates investment opportunity to the tune of INR1.5 billion to build multi-level car parking, 5-star hotels, public toilets and rest rooms, beautification and landscaping, water sports centre, convention centre, motels and camping sites in Circuit 1 alone on PPP basis

Sources: Ministry of Tourism, Government of India; IL&FS




Tourism, Housing and Infrastructure

■ Himachal Pradesh Infrastructure Development Board (HPIDB) is the nodal agency for executing a variety of projects, such as Tourism, Housing, and Infrastructure on commercial/PPP mode

■ Around 29 tentative projects have been identified which include -

‒ A INR10 billion tunnel-cum-over bridge project between Kalka and Shimla

‒ Three expressway corridors:

■ Una-Mandi■ Una-Dharamshala

■ Solan-Rohru

‒ 15 nursing and 5 para medical colleges

‒ One integrated tourism development project

‒ A Himalayan Ski village

‒ Integrated IT and Biotechnology Parks

‒ A Special Economic Zone in Kangra district

Source: HPIDB (http://himachal.nic.in/hpidb/HPDIB_EOC.htm)



Punjab: a snapshot

Punjab has been traditionally known

to be an agrarian economy with high

share of agriculture. Gradually, other

sectors, such as manufacturing and

services have increased their

contribution to the economy, with

services growing at the fastest pace

Sources: mapsofindia.com; MOSPI



Punjab: a snapshot (cont.)

Overview

Economic indicators

■ GSDP: State GDP recorded a CAGR of 6.0 percent during FY09-FY13

■ GSDP composition: Shifted in favor of services

■ Sector-wise CAGR: Primary (1.0 percent), Secondary (5.4 percent), Tertiary (9.2 percent) during FY09-FY13

■ Per capita income, FY13: INR48,496 (USD891.5)

Note: 1USD=54.4 INRGSDP at constant FY05 pricesSource: MOSPI

26.7 25.0 23.9 23.0 21.8

30.2 30.9 30.8 30.0 29.5

43.2 44.1 45.3 47.0 48.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0



GSDP composition (percent)

1,3041,386

1,4771,565

1,646

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800


GSDP (INR billion)



State’s sector specific strengths

Priority sectors

■ Textiles

■ Renewable energy

■ IT

■ Agro processing

■ Infrastructure

Priority sectors

■ Manufacturing

‒ Automobiles

‒ Bicycles

‒ Steel re-rolling

‒ Sports & leather goods

■ Real estate

■ Tourism & Entertainment

■ Biotechnology & Health

■ Education

■ Financial Services

■ Retail

Priority sectors

Clusters/hubs

■ Textiles and Woolens: Ludhiana, Barnala, Mansa, Bhatinda, Amritsar

■ IT: Amritsar, Mohali

■ Food: Amritsar, Ferozepur

■ Petro: Bhatinda

■ Automobiles: Patiala

■ Sports and Leather goods: Jalandhar

■ Bicycle and its parts: Ludhiana

■ Steel re-rolling: Mandi Gobindgarh

■ Sugar: Amritsar, Gurdaspur

■ Handtools: Jalandhar

Parks

■ Textiles: Ludhiana

■ Food: Fatehgarh Sahib

■ Biotech: Chandigarh

Township/SEZ

■ Electronics: Mohali (township)

■ IT, Electronics & Pharma: Mohali

Source: Government of Punjab



Sector-wise opportunities ‒‒‒‒ Textiles

Sources: Government of Punjab; The World Bank; Press articles


■ Punjab’s textile sector is strong on all aspects of value chain and thus offers diverse investment opportunities from raw materials to finished products (garments)

� Yarn� Ginning� Spinning� Weaving� Bleaching, dyeing� Fabrics� Garment manufacturing� Threads

� Woolens and hosiery



Sector-wise opportunities ‒‒‒‒ Renewable energy

Key enablers

■ More than 300 days of sunshine per annum; solar insolation estimated at 4-7 kwh/sq m

■ Rising demand for power

■ Developing technology to lower cost

■ Favorable policies and government schemes of renewable purchase obligation, renewable energy certificates

■ 40 percent subsidy on solar pumps to farmers

■ Rooftop programme where solar photovoltaic projects set on government buildings/universities

■ Single window clearance mechanism

■ Diverse investment opportunities for plants of variable sizes using a range of diverse sources —wind, solar, mini hydel and biomass

■ Agro residue estimated at 10 million tons can be used in biomass

Sources: Punjab Energy Development Agency; Press articles


■ As of March 2013, Punjab’s approximate installed hydro power capacity is 3,015 MW besides renewable power capacity of (388 MW) of which solar is 9 MW

■ Punjab has the third highest installed solar power capacity in the northern region after Rajasthan and UP

■ Immense solar power potential presents opportunities for solar power generation companies, transmission and distribution companies, equipment companies, engineering, procurement and construction companies solar wafer manufacturers, solar-based appliances manufacturers, such as water heaters, solar-based desalination plants and solar pumps



Sector-wise opportunities ‒‒‒‒ Renewable energy (cont.)

■ Punjab Energy Development Agency awarded 250 MW of solar PV projects to be completed by December 2014 on Build-Operate-Own (BOO) basis which requires an estimated investment of INR20 billion

■ Potential for mini hydel is immense on account of various canals — Bhatinda, Kotla, Abohar, Sidhwan and Bhakra

■ Estimated power potential to be developed by 2022: Biomass (600 MW), waste to energy (50 MW), Small/mini/micro hydro (250 MW), solar (1,000 MW)

Sector opportunities (cont.)

Sources: CEA; Press articles;Government of Punjab



Sector-wise opportunities ‒‒‒‒ Agribusiness

■ Punjab accounts for highest share in procurement of wheat and rice. In FY13, the state accounted for nearly 34 percent of wheat procurement and 30 percent of rice procurement

■ Agribusiness is one of the key focus areas of the new Industrial Policy, 2013 that has offered several tax incentives for the agro/food processing sector

■ 5,000 hectares have been identified for creating a land bank for new industrial projects

■ Punjab Agro-Industries Corporation (PAIC) is working towards facilitating investment in the sector along with adoption of new technology

Key enablers

Sources: Government of Punjab; Department of Food and Public Distribution, Government of India


■ Large crop production presents opportunities for:

� Fertilizers, pesticides, manures� Farm machinery and equipment (tractors, water sprinklers, power gensets etc.)� Micro irrigation techniques � Cold storage and warehouses� Transportation companies etc.

■ Production of fruits and vegetables presents opportunities for:

� Processing such as fruit juices, pulp, jams, jellies, ketchup, sauces, pickles etc.� Sorting, grading, packaging etc.

■ Other opportunities include: Poultry, Dairy etc



Plans and completed projects

Plans: Power generation Plans: Urban infrastructure and towns

■ State claims to be first in India to introduce Town Master Planning; Six towns identified under this are Amritsar, Bhatinda, Jalandhar, Ludhiana, Mohali and Patiala

■ Urban infrastructure

By 2016, 147 cities/towns to be provided basic amenities (power, water, sewerage, waste management) at an investment of INR100 billion

■ Master Plan

In MW FY13 FY14 FY15

Demand 8,214 8,865 9,567

Availability 5,872 8,884 11,484

Generation 5,872 7,564 8,884

New Plants 0 1,320 2,600

Surplus (Deficit) (2,342) 19 1,917

Project DeveloperExpected Commissioning

date

Thermal projects (BOO basis)

Goindwal Sahib(2x270 MW)

GVK PowerUnit I: March 2013Unit II: May 2013

Talwandi Sabo(3x660 MW)

Sterlite EnergyUnit I: April 2013Unit II: August 2013Unit III: December 2013

Rajpura (2x700 MW)

L&T PowerUnit I: December 2013Unit II: April 2014

Hydel projects

Mukerian Stage II (2x9 MW)

- March 2013

Shahpur Kandi Hydel (206 MW)

- March 2016

Generation projects under construction

State intends to be power surplus by FY14

Notified cities

Amritsar Mohali Jalandhar Ludhiana Bhatinda

Patiala Derabassi Mullanpur Kharar Banur

Zirakpur Gobindgarh Abohar Srihargobindpur -

Cities in pipelines

Hoshiarpur Roopnagar Rajpura Khanna Pathankot

Sangrur Gudaspur Batala Fatehgarh Sahib Kapurthala

Rama Mandi Jagraon Taran Taran Goindwal Dhilwan

Nawan Shahar

Sultanpur Lodhi

Baghapurana Talwandi Sabo -

Sources: Government of Punjab; Press articles



Plans and completed projects (cont.)

Diverse projects

■ Completed: Lotus Integrated Textile Park, Barnala

� Project cost: INR1.1 billion

� Area: 100 acres

� Developer: Abhishek Industries

� Completed under SITP scheme

� Direct employment: 1,500

■ Upcoming: Mega Logistic Park, Ludhiana

� Project cost: INR5 billion

� Area: 150 acres

� Developers: Container Corporation, and Punjab State

Conware and Warehousing Corporation

� Container throughput: 0.45 million per annum (estimated)

� Commissioning date: 2017

■ Upcoming: Integrated Education Hub, Jalandhar

� Area: 43 acres

� Master plan to be prepared


■ Upcoming: Stadium-cum-sports complex, Amritsar (cont.)

� Area: 15 acres

� Cost: INR250 million

� Facilities: Badminton and basket ball courts, athletics

stadium, Olympic size pool, sports mall, food court, hotel-

cum-residential complex for 200 occupants

� Will host cultural events with 7,500 seating capacity

� 2,000 cars and 16 buses can be parked

� 400 metre athletic track

� Designs invited by Amritsar Improvement Trust

� Final plan approved by government

� Construction to commence soon

� Constructed as an expansion scheme of Ranjit Avenue

■ Six more international stadiums

� To be built in Bhatinda, Jalandhar, Ludhiana, Mahilpur,

Mohali and Patiala




Ludhiana Metro Rail Project

Length: ~29 Km

Implementation agency: Ludhiana Metro Rail Corporation, special purpose vehicle (SPV) created for the purpose

Project completion year: 2018-19

Expected investment: INR98.40 billion (per km cost expected to be INR1.75 billion for elevated track and INR3.25 billion for underground track)

Project Background:

■ In June 2011, the Punjab cabinet approved the DPR for the proposed Ludhiana Metro Rail project. The cabinet also gave its nod for the execution of metro project on Build Operate Transfer (BOT) model

■ In November 2012, the project report for Ludhiana Metro was submitted to Union Government for final approval

Project details





Recreational Amusement Park, Ludhiana

Project details

■ In May 2013, the Punjab Cabinet approved the draft bill for the enactment of the Punjab Horse Race (Regulation and Management) Act 2013. The act would provide for setting up, management and operation of racecourses and betting

activities. Additionally, licensing, regulation, control and management of horse races would also be provided

■ The Recreational Amusement Park has been planned to come up near Mattewara area on the banks of Sutlej river in Ludhiana, Punjab

■ The main recreational activities under this project would include a turf club on around 140 acres, an entertainment city, lakes, safari, a five-star hotel, colleges, a jungle retreat (for walks in woods), water park and many other amusement places

■ The estimated break-up of the total project cost of INR6 billion includes INR1.5 billion for the turf club, INR1.5 billion for the five-star hotel and INR3 billion for other tourism projects

■ PIDB plans to develop this project under Public Private Partnership (PPP) mode

■ Infrastructure Leasing and Financial Services Ltd. (IL&FS), hired by the Punjab Infrastructure Development Board (PIDB) to study all technicalities involved in the project and feasibility of different sections proposed in the park, submitted itsdetailed report to the government in August 2012

■ Earlier in June 2012, the district administration identified around 1,400 acres in Mattewara as part of land pooling





Textile Park, Muktsar

Project details

■ SEL Group has announced a Greenfield Mega Integrated Textile Park at Village Panjava, Tehsil Malout in Muktsar, Punjab at an investment of approximately INR15 billion

■ Project was commissioned by SEL Textiles Ltd., a wholly-owned subsidiary of SEL Manufacturing Company Ltd., in April 2013; it commissioned the yarn spinning section which would have a capacity of nearly 200,000 spindles as per phase I

■ Total capacity of 188,160 spindles in ring spinning, 40 million metres per annum in denim fabric and eight million pieces of denim garments per annum

■ Cotton being the major raw material for the project, would be procured from the northern belt consisting of Punjab, Haryana and Rajasthan

Government policy which supported the project

■ Under the textile policy, a textile park with composite textile processing units from cotton to garment having a minimum fixed capital investment of INR2.5 billion, in the districts of Bhatinda, Ferozepur, Sangrur, Mansa, Mukatsar, Faridkot, Taran Taran, Barnala and Amritsar would be covered

■ The policy provides a provision for a 50 percent exemption from rural development fund (RDF), market fee and infrastructure development process for a period of 10 years or up to 50 percent of fixed capital investment, whichever is earlier, on cotton procurement; Additionally, 10 percent of the total land acquired/purchased by the investor would be allowed for commercial use without change of land use and external development charges




Rajasthan: a snapshot

Rajasthan, a popular tourist destination is

the largest state by area in the country

with well developed infrastructure

facilities. The state is well-known for its

rich minerals and related industries,

tourism and textiles industries and is also

fast growing in automobiles and IT/ITeS.

Given the vast potential, 323 industrial

areas and 8 growth centres have been

developed in the state. In order to

facilitate investment, single window

clearance mechanism is already

operational in the state.Source: Government of Rajasthan; , Find Data website, www.findthedata.in, accessed on 12 August 2013



Rajasthan: a snapshot

Overview

Economic indicators*

■ GSDP: State GDP recorded a CAGR of 9.2 percent during FY08-FY12

■ GSDP composition: This has marginally shifted in favor of Services

■ Sector-wise CAGR: Agriculture (7.9 percent), Industry (8.4 percent), Services (10.4 percent)

■ Per capita income: INR28,851 (USD602) in FY12 (latest available)

Notes: 1 USD = INR 47.9*At constant FY05 prices (data as of February 2013)

Source: MOSPI

1,6001,745 1,862

2,1472,278

0

500

1,000

1,500

2,000

2,500


GSDP (INR billion)*

22.4 21.4 19.5 22.6 21.4

32.0 31.4 32.6 30.9 31.1

45.6 47.2 47.9 46.5 47.5

0

20

40

60

80

100



GSDP composition (percent)*


■ Geographical area (sq km): 342,239

■ No. of districts: 33

■ Capital city: Jaipur

■ Key cities: Jaipur, Udaipur, Kota, Jodhpur, Ajmer and Alwar


■ Population density, 2011 census (persons per sq km): 201


Source: Census 2011 (http://www.census2011.co.in/census/state/rajasthan.html)



State’s sector specific strengthsOpportunities: Oil and Gas leading to Petrochemicals

■ Large reserves of oil and gas represent significant opportunity in view of the increased potential for development

■ Share of oil and gas production from the state has increased from NIL to 17.2 percent in case of crude and from 0.8 percent to 1.2 percent in case of gas during FY08-FY12

■ With increased oil and gas production, opportunities also exist in oil and gas transmission and distribution, underground lignite gasification and coal to liquid conversion plants

■ Throughput of transmission pipelines (product) grew at a CAGR of 8.5 percent during FY08-FY12

■ The state’s 2,572 retail outlets are the 7th highest in India

■ City Gas Distribution (CGD) network is under operation at Kota that is being carried out through over 90 km of distribution pipelines

■ Rajasthan State Refinery formed joint venture with Hindustan Petroleum Corporation Limited (HPCL) for setting a 9 million tonnes refinery cum petrochemicals units at Barmer at an investment of INR372 billion. It is the second biggest project in the state and will generate 3,00,000 jobs. It is expected to be completed by December 2017 and bring in INR86 trillion of investment


■ Oil and Natural Gas Corporation, Cairn India, Indian Oil Corporation, HPCL, GAIL (India) and GAIL Gas among others

Existing companies

Sources: MoPNG; PPAC; Press articles



State’s sector specific strengthsOpportunities ‒‒‒‒ Solar power

■ Average per day solar incidence of 5-7 kWh/sq m translating

into 1,600-2,000 kWh/sq m of power generation. Regions with

high solar radiation include Bikaner, Barmer, Jodhpur and

Jaisalmer

■ Rising demand for power

■ Rajasthan accounts for 81 percent of grid-connected scheme

under National Solar Mission. Highest no. (12) of 1 MW projects

as per Rooftop and Small Solar Generation Programme

■ Developing technology translating into lower cost

■ Favorable policies (10 year investment subsidy to the tune of 30

percent of tax deposited; exemption for 7 years from electricity

duty, land tax, mandi fee to the extent of 50 percent)

■ The state government improved the bidding process last year,

wherein projects were allocated under reverse bidding and

power purchase agreements were to be signed with Rajasthan

Renewable Energy Corporation Ltd.

Key enablers

Sources: Government of Rajasthan; Press articles

Total installed capacity and generation in Rajasthan*

Note: MW denotes Mega Watt; BU denotes billion units* Includes thermal, hydro, nuclear etc.Source: CEA

8975.110160.9

12155.644.8

49.553.9

0

5000

10000

15000

0

20

40

60

FY11 FY12 FY13

Capacity (MW) Generation (BU)

■ Government schemes of renewable purchase

obligation, renewable energy certificates

■ Single window clearance mechanism

■ Endowed with minerals: Close to 99 percent of India’s

zinc concentrates lie here (used in solar structures

galvanization). Rich in other minerals, such as quartz,

and salt required in Concentrating Solar Power (CSP)

technology



State’s sector specific strengthsOpportunities ‒‒‒‒ Solar power (cont.)

■ Rajasthan has the highest installed solar power capacity in the northern region of 442 MW. This capacity accounts for a share of 92.3 percent in northern region’s solar power capacity and of 31 percent of total installed solar power capacity in India, as of March 2013

■ Immense solar power potential presents opportunities for:

‒ Generation companies

‒ Transmission and distribution companies

‒ Equipment manufacturing or leasing companies

‒ Engineering, procurement and construction (EPC) companies

‒ Solar wafer manufacturers

■ Opportunities also exist for solar-based appliances manufacturers, such as water heaters, solar-based desalination plants and solar pumps

■ State government plans on establishing Solar Energy Enterprise Zones (SEEZ) in Barmer, Jaisalmer and Jodhpur districts and is offering incentives for the same

■ Upcoming solar parks in Jodhpur, Bikaner, Jaisalmer


Sources: IREDA, NVVN, State agencies, Project developers; Press articles



Government identified areas/zones present immense investment opportunities

■ Behror

■ Bhiwadi

■ Ghiloth

■ Neemrana

■ Shahjhanpur

Industrial areas

■ Khushkhera ext.

■ Tapukara ext.

■ Soniyana (Chittor)

■ Kunjbiharipura (Jaipur)

■ Karni ext. (Bikaner)

■ Gajaner (Bikaner)

■ Borananda (Jodhpur)

Upcoming industrial areas

■ Automobile: Bhiwadi

■ Glass and ceramic (upcoming): Ghiloth

■ Textiles (upcoming on PPP mode): Jodhpur, Bhilwara

Clusters/hubs

■ IT: Sitapura, Kota, Jodhpur, Udaipur

■ Textiles: Pali, Bagru, Kishangarh

■ Agro: Alwar, Jodhpur, Sriganganagar, Kota

Parks


Growth centres

■ Abu Road

■ Bhilwara

■ Bikaner

■ Nagaur

■ Sikar

Mini growth centres

■ Baran

■ Bharatpur

■ Bhiwadi

■ Jodhpur

■ Karauli

■ Pali

■ Tonk

■ Udaipur



Government identified areas/zones present immense investment opportunities(cont.)


■ MoU: Neemrana Industrial Estate developed as per MoU between RIICO and Japan External Trade Organization (JETRO)

■ Delhi-Mumbai Industrial Corridor (DMIC): This region to be part of much-talked about DMIC project

■ Investment: INR42 billion invested; expected employment: 9,120

■ Area: 1,167 acres, of this, close to 494 acres allotted to more than 25 companies (expected investment and employment: more than INR25 billion and 3,000 respectively)

■ Sector presence: Most companies belong to automobile sector

■ Key investments: Daikin (INR6 billion), Mitsui Chemicals (INR4 billion), Mikuni India (INR1.5 billion), NYK Logistics (INR1 billion) ; Nippon Steel (INR3 billion exp)

■ Units in production: 24 (Nissin Brake, Daikin Airconditioning, Mikuni, Nippon, Mytex Polymer etc.)

■ Proposed infrastructure development: Cargo airport between Ajarka and Kotkasim, and super express highway through Neemrana

■ Gaining international attention: African delegation of 25 members from 15 countries and a delegation from Taiwan Electrical and Electronic Manufacturers’ Association visited Neemrana

Neemrana: Japanese Investment Zone I

Rajasthan is the only state in the country to have three international investment zones



Government identified areas/zones present immense investment opportunities(cont.)


■ The investment zone being developed as per MoU signed between the RIICO and Korea Trade Investment Promotion Agency (KOTRA)

■ Approximately 250 acres of land earmarked

■ Automobile and electronic sector companies have evinced greater interest

■ It will house a ceramic and glass hub, solar equipment manufacturing etc.

■ Gas supply being considered by GAIL

■ Area to be operational by 2014

Ghiloth: South Korean Investment Zone

Rajasthan is the only state in the country to have three international investment zones

■ The success of Japanese Investment Zone I laid the foundation for Japanese Investment Zone II

■ For the new phase, 500 acres of land will be made available

■ Central sales tax concession being offered to Japanese investors

Ghiloth: Japanese Investment Zone




Delhi-Mumbai Industrial Corridor

■ Length: 1,483 km

■ States: UP, Delhi, Haryana, Rajasthan, Gujarat and Maharashtra

■ Project implementation: Special Purpose Vehicle, Delhi Mumbai Industrial Corridor Development Corporation

■ Around 40 percent of project areas falls in Rajasthan

■ Objectives: Provide high speed connectivity for high axle load wagons (25 tonnes) of double stacked container trains; create at a global manufacturing and trading hub

Project details

■ Government of India (49 percent)

■ Japan Bank for International Cooperation (26 percent)

■ Housing and Urban Development Corporation (19.9 percent)

■ Others include India Infrastructure Finance Company (4.1 percent) and Life Insurance Corporation of India (1 percent)

Investors

Sources: Government of Rajasthan; DMIC; Press articles




Delhi-Mumbai Industrial Corridor (cont.)

■ First phase of development: Six investment regions and six industrial areas identified for investment

■ Second phase of development: Five investment regions and seven industrial areas identified for investment

■ Expected investment in project’s cities: USD90-100 billion

■ Development of airports

■ Development of townships: 25-50 sq km in cities by 2019

■ Germany has evinced interest for investing in the project

Sources: Government of Rajasthan; DMIC; Press articles

■ Government approved financial assistance of INR25 billion per city for development of Dadri, Noida, Ghaziabad, Manesar, Bawal, Khushkhera, Bhiwadi, Neemrana, Ahmedabad, Dholera

First phase of development (2008-12)

Second phase of development (2013-17)

Core project areas

Industrial areas Investment regions

Jaipur-DausaKhushkhera-Bhiwadi-Neemrana

Rajsamand-Bhilwara Ajmer-Kishangarh

Jodhpur-Pali-Marwar

DMIC’s major junctions in Rajasthan

Phulera, Marwar, Bangurgram

Other areas for development

■ Industrial townships being planned in Khushkhera-Bhiwadi-Neemrana and in Jodhpur-Pali-Marwar regions

■ Greenfield airport, 24 sq km

■ Road corridor to connect Bhiwadi-Tapukara industrial complex with Shahjahanpur-Neemrana-Behror urban complex

■ Jodhpur-Pali-Marwar region to have an airport, multi-modal logistics hub and mass rapid transit system

■ Knowledge city Khushkhera-Bhiwadi-Neemrana 12.3 sq km




Gyanodaya Schools Project

■ Objective: To provide equitable quality education in rural areas

■ Project: Building secondary schools (Class VI-XII) in areas where there is no such school in a 5 km radius

■ Estimated cost: INR6 billion

■ Project bid criterion: Viability Gap Funding (VGF)

■ Project type: PPP on design, build, finance, operate and transfer (DBFOT) basis for 30 years after which, the assets would be transferred to the Government

Project details

■ Government of Rajasthan (GoR) plans to build 165 new senior secondary schools, of which five schools are proposed to be built in each district of Rajasthan on PPP basis


Phase-1

■ Phase-1 aims at constructing 50 schools in Ajmer (four districts) and Udaipur (six districts)

■ Total investment in Phase-1, comprising 50 schools, has been estimated to be INR2,074 million

Background

Project status

■ As of 31 March 2013, for Phase-1, the applicants have been shortlisted and VGF has been sanctioned by the Government of India (GoI) for the following areas:

‒ Ajmer‒ Bhilwara‒ Banswara‒ Chittorgarh‒ Dungarpur‒ Nagaur‒ Pratapgarh‒ Rajsamand‒ Tonk‒ Udaipur

■ The applicants for the remaining schools would be shortlisted in the upcoming phases of the project




Gyanodaya Schools Project (cont.)

■ Project cost: INR6,000 million (Phase-1: INR2,074 million)

■ Internal rate of return (IRR): 14-16 percent

■ Average debt service coverage ratio: 2.1

Indicative project financialsState Government

■ PPP school land to be provided on a 30 year lease basis to the private partner at nominal lease rent

■ Construction subsidy with a ceiling of INR5 million per school

Centre

■ VGF of 20 percent of the project cost

■ GoI approved financial assistance for the project under the India Infrastructure Project Development Fund (IIPDF)

■ Project development entails structuring, financial modelling, bid documents preparation and bidding process assistance. But, no financing support would be provided during the operations

■ Asian Development Bank (ADB) has also provided partial financial support for project development activities

Fiscal support

Revenue model

■ Fee from private/open market students would be market-based

■ Fees of Government-nominated voucher students would be reimbursed by GoR

■ Voucher amounts would be calculated by GoR based on Public Sector Comparator, linked to consumer price index

■ Additional revenues from any supplementary activities undertaken by the school to the operator




Water supply and sewerage system plants

Ajmer and Pushkar


■ Project type: PPP on DBFOT basis

■ Objective: Rehabilitation, augmentation and operation of the water supply and sewerage system

Udaipur


■ Project type: PPP on DBFOT basis

■ Objective: Rehabilitation, augmentation and operation of the water supply and sewerage system

Both projects are currently in the pipeline stage and are being managed by Public Health Engineering Department, Government of Rajasthan

Status of the projects:

As of 31 March 2013, consultants submitted respective feasibility reports for both projects. Observations on the same communicated. Modified reports are still awaited





Nine textile parks under SITP

■ Scheme for Integrated Textile Parks (SITP): Aims at facilitating development of Integrated Textiles Parks (ITPs) in India under PPP model

■ In March 2013, Ministry of Textiles started forming a panel of Project Management Consultants for implementing the projects sanctioned under the 12th Five Year Plan

■ Scheme would be implemented through project specific Special Purpose Vehicle (SPV) of the user industry with one project SPV for one park. Each ITP expected to have 50 units

■ GoI’s support under the scheme by way of grant or equity would be limited to 40 percent of project cost, which cannot exceed INR400 million. Also, the grant cannot be used to purchase land for the ITP

■ The following textile parks have been approved in Rajasthan under SITP:

‒ Jaipur Texweaving Park, Kishangarh

‒ Kishangarh Hi-Tech Textile Park,

‒ Next Gen Textile Park Pvt. Ltd., Pali

‒ Jaipur Integrated Texcraft Park Pvt , Bagru

‒ Bharat Fabtex and Corporate Park, Pali

‒ Jaipur Kaleen Integrated Textiles Park, Dausa

‒ Mewar Industrial Textile Park, Pali

‒ Himmanda Integrated Textile Park, Baltora

‒ Rajasthan Integrated Apparel City, Tapukara




Uttar Pradesh: a snapshot

Uttar Pradesh (UP) is the biggest

state economy in the northern

region with a share of

approximately 31 percent in the

region’s GDP. It is mainly driven by

the services sector and within the

services sector, trade, hotels, real

estate, transport, storage and

communications are the prominent

sectors

Source: Find Data website, www.finddata.in, accessed on 12 August 2013



Uttar Pradesh: a snapshot (cont.)

Overview



■ Total population (million): 199.6

■ Population density (persons per sq Km): 828

■ Literacy rate (percent): 69.7


■ GSDP: INR4,451.7 billion (USD81.8 billion) in FY13 compared to INR3,222.1 billion (USD80.1 billion) in FY08, CAGR of 6.7 percent

■ GSDP composition (FY13): Agriculture (21.9 percent), Industry (23.2 percent), Services (54.9 percent)

■ Sector-wise CAGR (FY08-FY13): Agriculture (3.0 percent), Industry (4.6 percent), Services (9.5 percent)

■ Per capita income (FY13): INR18,891 (USD347.3)

Sources: Census 2011; MOSPI; Find Data website, www.finddata.in, accessed on 12 August 2013

*At constant 2004-05 prices, GSDP and per capita income data is as of 1 August 2013, GSDP composition and sector-wise CAGR data is as of 27 February 2013



Sector-wise opportunities ‒‒‒‒ Infrastructure

■ Investment worth INR230 billion planned for 2,500 Km of state highway projects

■ 6,730 Km identified as core network by the World Bank, of which 2,466 Km has been developed by UP Public Works Department (UPPWD)

■ Concession agreement signed for four roads of 463 Km, costing INR38.7 billion

■ Feasibility study has been completed and proposals for VGF are being sent to the Central Government for 11 roads of 977 Km, costing about INR71.3 billion

■ 11 hi-tech townships and 31 integrated townships are being developed by private developers in major cities of the state

■ One National Manufacturing Investment Zone being planned each in Jhansi and Auraiya

■ Airports on PPP model – near Agra in the vicinity of Delhi Mumbai Industrial Corridor (DMIC) to provide facility of dry-cargo transport along with aircraft maintenance hub and at Kushinagar in eastern Uttar Pradesh to promote industrial development and tourism

■ DMIC: Immense opportunities for development of an industrial corridor along the alignment of dedicated freight line

■ The Government of UP (GoUP) envisages Industrial Estates and Logistic Hubs along Eastern Dedicated Freight Corridor (EDFC)


Source: Udyog Bandhu



Sector-wise opportunities ‒‒‒‒ Infrastructure (cont.)

Key infrastructure projects in PPP


Project Size capacity Project cost (INR billion)

UP State Highways Authority

Delhi-Saharanpur-Yamunotri Road (SH-57) 206 Km 17.2

Varanasi - Shaktinagar (SH-5A) 115 Km 12.1

Pallia – Shahjahanpur – Hardoi – Lucknow Road (SH-25)

162.4 Km 12.9

Akbarpur – Tanda – Jaunpur – Mirzapur –Dudhi Road (SH-05)

237 Km 18.7

Yamuna Expressway Development Authority

Yamuna Expressway Construction (Noida to Agra – 165 Km long)

165 Km 103.7

UP Expressways Industrial Development Authority

08-Lane Access Controlled Expressway from Greater Noida to Ballia

1,047 Km 300

06-Lane Access Controlled Expressway from Agra to Lucknow

na 95.5

08-Lane Access Controlled Expressway on the right bank of Upper Ganga Canal from Sanouta Bridge (Greater Noida) to near Purkaji (Dist Muzaffarnagar)

148 Km 89.1




Key infrastructure projects in PPP (cont.)


Project Size capacity Project Cost (INR billion)

UP Expressways Industrial Development Authority

Development of 06-Lane Access Controlled Expressway on the right bank of Upper Ganga Canal from Sanouta Bridge (Greater Noida) to Kanpur-Fatehpur

363.8 Km 78.96

Agra to Kanpur Access Controlled Expressway 243 Km 73.2

Jhansi-Kanpur-Lucknow-Gorakhpur to Kushinagar 08-Lane Access Controlled Expressway

626 Km 192.9

Lucknow-Barabanki-Nanpara Link Expressway 133 Km 29.8

Kotdwar-Bijnor-Moradabad to Fatehgarh Access Controlled Expressway

313 Km 80.7

Narora to 10Km before Uttarakhand border Access Controlled Expressway

151 Km 28.9

UP Power Corporation Ltd.

3x660 MW Bara Thermal Power Project (Tehsil-Bara, district Allahabad)

1,980 MW 115

2x660 MW Karchhna Thermal Power Project (Tehsil-Karchhna, district Allahabad)

1,320 MW 79.2

2x660 MW Jawaharpur Thermal Power Project,district Etah

1,320 MW 66.0




Key infrastructure projects in PPP (cont.)


Project Size capacity Project Cost (INR billion)

UP Power Corporation Ltd.

3x660 MW Dopaha Thermal Power Project (Sonebhadra)

1,980 MW 120

Transport

Selection of Private operators/ investors to operate stage carriage buses

- 16



Sector-wise opportunities ‒‒‒‒ IT/ITeS

■ Availability of highly skilled manpower for IT/ITeS industry – premier institutes including IIT Kanpur, IIM Lucknow, IIIT Allahabad, IMT Ghaziabad, C-DAC Noida and IT-BHU are located in the state

■ The UP Government is planning a 100-acre ‘IT City,’ which would come up on Lucknow-Sultanpur highway

■ The IT park project in Lucknow is proposed to be developed at an estimated cost of INR2,850 million on an area of approximately 130,000 sq meter by Lucknow Industrial Development Authority (LIDA)





Sector-wise opportunities ‒‒‒‒ Food processing

Sources: Udyog Bandhu; Press articles

■ 2,101 agriculture marketing hubs being set up for grain storage, farmer service centers, banks and primary processing units costing INR3.5 billion

■ With a population of 200 million, UP offers the largest market for consumption of food products

■ Huge opportunity exists as currently only 2 percent of total produce of fruits and vegetables is commercially processed

■ Presence of relatively low-cost skilled workforce

■ Favorable policy environment

■ Large consumer base of 200 million with growing per capita income

■ Proposed industrial infrastructure: Plastic City at Auraiya; Leather Mega Cluster at Kanpur, Agra, Hardoi; Integrated Dairy Park at Lucknow; Mega Food Park at Jagdishpur; Textile Park at Fatehpur




Sector-wise opportunities ‒‒‒‒ Manufacturing (cont.)

Key growth and opportunity segments in Uttar Pradesh


Segment Key strengths and opportunity areas

Engineering Goods

• Noida and Ghaziabad are home to several original equipment manufacturers (OEMs) and auto component suppliers

• Centre of National Automotive Testing and R&D Infrastructure Project (NATRIP) is being set up

• A centre for providing complete homolocation service to agri-tractors, off-road vehicles, diesel generation sets as per Indian and global standards

Leather • Second largest producer after Tamil Nadu

• Contributes about 28 percent to India’s total exports of leather and leather products

• Over 900 acres of land sanctioned for setting up two Leather Parks in Sandila (District Hardoi) and at Ramaipur (District Kanpur) which will attract an estimated investment of INR20 billion

• Kanpur and Agra are notified as ‘Towns of Export Excellence’ for leather products

• Multi level skill development centre at a total project cost of INR92.4 million and testing laboratory in Kanpur at a project cost of INR97.6 million are planned by theCouncil for Leather Exports at Kanpur

• Footwear Design and Development Institute (at Noida) – a one stop solution provider for footwear, leather products and allied industries

Segment Key Strengths and Opportunity areas

Chemicals and Fertilizers

• Produces approximately 6 percent of India’s total production of Chemicals

• Home to some of the major chemical manufacturers, such as Tata Chemicals, Kanoria Chemicals and Jubilant Life Sciences

• Abundant availability of raw material for production of fertilizers in Bundelkhand area

• Rock phosphate found in Lalitpur is sold as a direct fertilizer and used as raw material for phosphorus plants



Sector-wise opportunities ‒‒‒‒ Manufacturing (cont.)

Sector opportunities (cont.)

Existing companies


Segment Key Strengths and Opportunity areas

Sugar • Second largest sugar producer of India accounting for about 28 percent of total output

• Easy access to raw material and huge potential of establishing new units in Eastern UP

• Huge demand for by products

• Conducive policy support to harness the sector’s high potential

Cement • Ninth largest in production of cement with production of 7.05 million tones per annum

• Abundant availability of raw material in Bundelkhand area ideal for setting up cement manufacturing plants

• Major investments by leading groups for establishing new cement plants and expansion of existing plants

Textiles • The state offers complete range of handloom products like home furnishing, floor coverings, bed covers, bed sheets and dress material and a vast range of woven and printed saris made of cotton and silk

• Accounts for approximately 5.6 percent share of total weaving units in handloom sector in India

• Mirzapur and Bhadohi are major centers for the production of carpet floor coverings and account for approximately INR20 billion of export

Key growth and opportunity segments in Uttar Pradesh



Key projects specific investment opportunities

Agra to

Lucknow access controlled

expressway project

Potato flakes and potato

based Vodka

manufacturing

■ Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) has been nominated as the nodal agency for the development of this project

■ The expressway will start from proposed Agra Ring Road and end at proposed Lucknow Ring Road; It will reduce the distance between Lucknow and Agra to 270 Km from the current 335 Km

■ Concept report has been prepared and the request for quote/request for proposal (RFQ/RFP) is expected to be floated by the middle of 2013

■ The expressway is proposed to be linked through Link Expressways from existing and potential commercial/agricultural hubs, such as Firozabad, Shikohabad, Etawah, Kannauj and Malihabad

■ The state tops in the production of potatoes accounting for 34 percent share in the country’s potato output

■ A plant has already been established near Hapur for potato flakes manufacturing

■ The State Government is planning to incentivize potato-based vodka manufacturing keeping in view its huge potential

■ A major distillery is in the process of establishing a vodka manufacturing plant near Rampur

Sources: Udyog Bandhu ; Press articles



Key projects specific investment opportunities (cont.)

Noida and Lucknow Metro

rail

Information Technology City,

Lucknow

■ 29.5 Km long rail link on the Noida-Greater Noida route from Noida City Centre to Boraki to be developed by 2017 at an estimated cost of INR50 billion

■ The State Government has approved the formation of special purpose vehicle (SPV) —Noida Metro Rail Company — to implement the project

■ The UP Cabinet has also given its approval to the first phase of 23 Km-long Lucknow Metro Project, which is estimated to be completed by March 2018

■ The first phase of the project to cost around INR70 billion

■ For this also, an SPV – Lucknow Metro Rail Corporation — will be formed

■ The UP Government is planning a 100-acre ‘IT City’ on Lucknow-Sultanpur highway

■ The proposed city will be built on about 100 acres of government land at Gajaria farms on Sultanpur Road in Lucknow




Key projects specific investment opportunities (cont.)

Plastic City

Dibiyapur

(Auraiya)

Export Promotion

Industrial Park

■ 100 acre at Auraiya district

■ First Plastic City project of UP , to be developed through PPP

■ MoU signed with GAIL for smooth supply of raw material

■ 200 MW power plant being built adjacent to the site

■ Excellent Railway Connectivity

■ Excellent Road connectivity to major cities like Agra, Lucknow, Kanpur, Gwalior

Agra

■ 102 acre land at a cost of INR 21 cr for setting up export oriented units

■ Construction activities on allotted plots ( ~80% )

Greater Noida

■ Over 200 acre land

■ Infrastructure facilities at par with international standards

■ Production & exports commenced in 4 units. Construction of factory building in 11 units




Initiatives undertaken and projects underway (cont.)

■ Seeds, urea and pesticides provided to farmers during rabi season at a pre-determined price

■ A scheme, ‘Bhoomi Sena Yojana’ introduced to enable farmers convert their flood-affected, barren, unproductive land for agriculture use

■ Conducted program, ‘Apni Mitti Pehchane’, to discuss fertilizer quantity to be used

■ Distributed Kisan Credit Cards to farmers

■ Markets created at every 10 Km for enabling easy purchase and sale of agricultural produce

■ Under the ‘Janeshwar Mishra Gramya Yojana’ and development works, over 1,000 villages selected and allotted more than INR2.5 million each

Agriculture

Work under progress Plans to develop

Agra inner ring road Food park in Jagdishpur

Ghaziabad northern peripheral road Plastic city in Auraiya

Four-lane highways to connect district headquarters

Agro park in Shahjahanpur

Agra and Kushinagar international airports -

Source: Rail Bandhu, June 2013



Uttarakhand: a snapshot

Uttarakhand is one of the popular

tourist destinations of the northern

region. The state economy is driven by

the services and the manufacturing

sectors, with each recording a CAGR

of more than 11 percent between FY08

and FY13. The manufacturing sector is

diverse. In terms of investment,

electricity generation is the key

attraction among all other sectors.

Sources: Report on Investment Climate in Uttarakhand; CII; CSO; Find Data website, www.findthedata.in, accessed on 12 August 2013



Uttarakhand: a snapshot (cont.)

Overview



■ Total population (million): 10.1

■ Population density (persons per sq Km): 189

■ Literacy rate (percent): 79.6


■ GSDP: INR631.6 billion (USD11.6 billion) in FY13 compared to INR380.2 billion (USD9.4 billion) in FY08, CAGR of 10.7 percent

■ GSDP composition (FY13): Agriculture (10.9 percent), Industry (35.7 percent), Services (53.4 percent)

■ Sector-wise CAGR (FY08-FY13): Agriculture (3.6 percent), Industry (11.1 percent), Services (11.8 percent)

■ Per capita income (FY13): INR53,548 (USD984.3)

*At constant 2004-05 prices, GSDP and per capita income data is as of 1 August 2013, GSDP composition and sector-wise CAGR data is as of 27 February 2013

Sources: Census 2011; MOSPI ; Find Data website, www.findthedata.in, accessed on 12 August 2013



Sector-wise opportunities ‒‒‒‒ Tourism

■ Largely untapped potential due to inadequate capital investment in tourism infrastructure. So, opportunities exist in creation of modern tourism infrastructure, such as tourists accommodation facilities, Tourism Information Centers (TICs) and the development of air and road transport

■ Opportunity in developing several pilgrimage destinations, such as Panchbadri, Panchkedar, Panchprayag and Patal Bhuvaneshwar

■ Opportunity in developing cultural, adventure, wildlife and eco-tourism

■ Develop new tourist destinations, such as New Tehri, Pauri, Khirsu and Lansdowne

■ Adequate availability of literate human resources conducive to tourism industry development


Sources: Tourism Policy of Uttarakhand; Press articles; Primary interviews



Sector-wise opportunities ‒‒‒‒ Hydel power

■ Abundant hydro potential and less than 20 percent harnessed

■ Many sites for developing Micro (up to 100 KW), Mini (100KW-5 MW) and Small (5-25 MW) Hydro power projects

■ Uttarakhand is being developed as an ‘Energy State’ to tap its huge Hydro Electric Power (HEP) potential of approximately 27,039 MW

■ Untapped potential of about 600 MW that could be harnessed before 2020 through Micro/Mini/Small Hydro projects

■ Opportunities exist in renovation, modernization and upgradation of various hydro projects, such as Kulhal, Dhakrani, Dhalipur, Khodri, Chibro, Tiloth, Ramganga and Chilla

■ Investment opportunities exist in following hydro projects:

‒ Large and Medium Hydro Projects: Utyasu Stage I to IV, Ming – Nalgaon, Garbyang, Budhi, Malipa, Tawaghat Tapovan, Tapovan Kalika, Kalika Baluwakot

‒ Small hydro projects: Guptkashi, Asiganga-III, Chamoli, Pilangad-II, Sonegad, Painagad, Suringad-II, Tankul, Urgam-II, Bhilangana 2A, 2B and 2C

■ Joint venture investment possibility in Tamak Lata, Bowla Nand Prayag, and Nand Prayag Langasu hydro projects


Source: CII, Uttarakhand Jal Vidyut Nigam Ltd., Primary Interviews



Sector-wise opportunities ‒‒‒‒ Industry

■ The IIEs offer best possible industrial infrastructure, such as roads, water, sewerage, power connectivity, street lighting, labs, hotels, hospitals and educational institutions

■ SIIDCUL Phase-II is being developed at Sitarganj in approximately 1,700 acres of land with world-class infrastructure, air connectivity, commercial complex, hospitals and schools

■ SIIDCUL to develop high class Food Parks, generating investment opportunities in food processing

■ Knowledge City is being developed at Escort Farm, Kashipur on around 330 acres of land

■ Perfect location - The National Capital Delhi is 255 Km away from Dehradun, the interim capital of the state. Chandigarh, another hub of commercial activities, is also well connected by National Highway-72 and is 180 Km away

■ Connectivity: The state offers good connectivity through rail, road and air. Dehradun and Pantnagar have operational airports. New airstrips and heliports are also proposed in the state

■ Logistic hub: Logistic hub would connect SIIDCUL with the rest of the country as it would facilitate industries with container for exports of their goods

■ Availability of railway yard would minimize transportation cost

■ Highly educated human resource base: The presence of a large number of educational and technical institutions assures easy availability of an English speaking and skilled workforce. The state has traditionally been known for its world class education institutions


Source: Press Articles



Project-wise investment opportunities (cont.)

■ The Uttarakhand Government is exploring the possibility of building a 14 Km long ropeway from Gaurikund to the Kedarnath shrine

■ The construction of the ropeway is estimated to cost more than INR1 bilion

■ The stretch between Gaurikund, Rambada and Kedarnath was destroyed in floods and landslides that occured in June 2013

■ The Government has been planning to bid out Kedarnath Ropeway through PPP mode in the next few months and the process is under way

■ The Government is also planning to bid out Hemkund Sahib Ropeway

■ The Government has also conducted technical studies for other ropeways including Binsar Road to Kasar Devi temple in Almora, Rishikesh to Kunjapuri, Snow view to Nanital Zoo, Chakrata to Tiger falls and at Dayara Bugyal

Kedarnath ropeway

Sources: Press articles; Interviews



Project-wise investment opportunities (cont.)

■ Development of Tehri Lake: Tehri lake is one of the biggest man-made lake which could be developed as a major tourism hub. The State Government wants to develop the whole Tehri area with active participation from private sector

■ Running of Tourist Information Centres (TICs): The State Government has built many TICs all across the state and plans to run these TICs under PPP mode

■ Heli connectivity: The State Government wants to provide helicopter services all across the state. It has built heliports and helipads all across the state along with civil aviation department. The Tourism Department has invited all private helicopters services to provide heli connectivity in the state

■ Development of a 5 star property: The State Government has recently floated a bid to develop 10 acres of land in Dehradun on PPP basis to develop a 5-star property along with world class convention centre facilities. The State Government invited all leading hotel chains to participate in the bid process

Other projects

Sources: Press articles; Interviews

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. The views and opinions expressed herein are those of the interviewees and do not necessarily represent the views and opinions of KPMG in India. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

© 2013 KPMG Global Services Private Limited, a company incorporated under the laws of India and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

Documents

Compendium of Investment Opportunities in Northern States