jharkhand state presentation

Momentum Jharkhand

Why Jharkhand?S

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Dynamic Leadership

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& In

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Progressive Policies

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In

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Industrial Heritage

Resourceful Geography

Le

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Pro

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ia ►Endowed with vast natural resources

►Ranks 3rd in mineral production & home to 40% mineral reserves of India

►Mineral based industries categorized as thrust areas by the State

►”Jamshedpur” - first India planned city

►Home to India’s first integrated steel plant set-up in 1907

►Long established presence of leading industry players -TATA Steel, BokaroSteel & Usha Martin

►Strong policy framework

►Policies aligned to national priorities

►Fiscal and administrative incentives

►Routine review and revision of policies

►Visionary Leadership

►Focus on promoting industrial growth & harmony

►Promoting collaboration between government & private sector

Energy Health Care Skill & Edu.

Urban Dev.Tourism IT & ITES

Textiles

Agri, Food & FeedFocu

s

Se

cto

rs

Jharkhand A leading industrial state in Eastern India

Ranked 1st in Labor reforms and

inspection related compliances in India[1]

Endowed with 40% of India’s mineral

wealth. Leading producer of steel, coal,

mica and copper in India (1st rank in Iron

ore, coal, Uranium, Mica, Asbestos)

lowest in India & Long history of

industrial harmony[2]

10.5% GSDP[4] growth rate - Second

fastest in Eastern India [5]

Ranked 3rd in “Ease of Doing Business”

in India[6]

1

2

3

Ranked 5th Foreign Direct Investment

(FDI) destination in India

4

[1] World Bank Report on Assessment of State Implementation of Business Reforms

[2] Indian Labour Journal -2015

[3]SWAN: State wide Area Network; CSC: Common Service Centers

[4] GSDP – Gross State Domestic Product

[5]CAGR during 2004-05 to 2014-15

[6] World Bank Report

[7] Source: FDI Intelligence Survey

Investment Climate

Single Window Clearance

Online Applicatio

n and

Approval

Regular Consultation with

Industry

Time Bound

Grievance

Handling

Ease of

Doing

Business

Business Enablers

Momentum Jharkhand

Single Window

www.advantage.jharkhand.gov.in

Helpline: 0651-6556666

Common application for different

incentives D

Online monitoring of disbursal of

incentivesE

Grievance handling with timelinesF

Interactive system for approvals G

A SMS/E-Mail status notification

B Common Helpline numbers for clearances

C Qualified and equipped relationship

officers

Strong Policy FrameworkH

Momentum Jharkhand

Strong Policy Framework

Jharkhand Single window Clearance Act

2015

Jharkhand Industrial and Investment

Promotion policy 2016

Jharkhand Industrial Park Policy 2015

Jharkhand Food Processing Industry

Policy 2015

Jharkhand Feed Processing Industry Policy

2015

Jharkhand Tourism Policy 2015

7

6

5

4

3

2

1

Jharkhand Procurement Policy 2015

Jharkhand Communication Towers and

related structure Policy 2015

Jharkhand Film Policy 201510

9

8

Jharkhand Export Policy 2015

Key Policy Incentives

Jharkhand Industrial

and Investment

Promotion Policy,

2016 and

Industrial Park Policy

50% of the project cost with ceiling up to Rs 10 cr. for industrial park

50% of cost with ceiling of Rs 7 cr. incurred on infrastructure development for sector specific

parks

Financial Incentives -Comprehensive Project Investment Subsidy (CPIS) @ 20% fixed

capital, incentives on VAT, Interest Subsidy, Pollution Control Equipment Subsidy

Jharkhand Food &

Feed Processing

Industry Policy, 2015

Grant-in-aid from 35% to 45% of the project cost maximum - upto Rs 5 cr.

Financial grant-in-aid and concessions and incentives for market development and export

promotion

Jharkhand Tourism

Policy, 2015

30% incentives on capital investment, subsidy on capital power generation, interest subsidy,

and incentives on airport operation (50% load factor in 1st Year)

Policy also provides for Tax and Duty exemption for tourism centric projects

Ease of Doing Business- Revised Timeline

Disposal of

Application

Time Limits under

Facilitation Act (days)

Earlier Revised

Registering a

Business under VAT30 1

Allotment of land by

GovernmentUn-defined 75

Environmental

Approvals120 30-69

Registration under

various Labour ActsUn-defined 30

Electricity

Connection30 Days 13

Online grant of Factory Licence and its

subsequent renewals can be issued for 1 to 10

years

Professional Tax registration certificate issued

within one working day of application

VAT refund is now done in 60 days

Water allocation/ connection approval now

available within 30 days

Timeline for Building Plan Approval is 60 days

Approval of Online application for Tree Cutting

and Transportation within 41 days

Most Labour clearances within 50 days

Momentum Jharkhand

Competitive Cost of Doing Business

Rajasthan

Power Tariff: 1.55

Skilled Labour wage: 1.0

CPI: 25.47

Gujarat

Power Tariff: 1.11


CPI: 22.70

Maharashtra

Power Tariff: 1.67


CPI: 28.93

Karnataka

Power Tariff: 1.5


CPI: 25.90

Uttar Pradesh

Power Tariff: 1.77


CPI: 24.85

Jharkhand

Power Tariff: 1.17


CPI: 24.33

Madhya Pradesh

Power Tariff: 1.24


CPI: 26.09

Chhattisgarh

Power Tariff: 1.27


CPI: 22.7

Andhra Pradesh

Power Tariff: 1.36


CPI: 23.85

* Power Tariff and Skilled Labour Wage have been shown as Cost Index with base as 1.CPI is Consumer Price Index of the capital city (For Andhra Pradesh, Vijayawada is

considered), sourced from www.numbeo.com

Abundant Skilled Human Resources

Educational Infrastructure

Education ProgramNo. of

Institutions

Technical

Architecture &

Engineering/

Technology

16

MCA 4

ITI 20

ITC 157

Polytechnic 25

MedicalMedical 3

Pharmacy 2

Management

Management 13

Hotel Management 2

Others B.Ed/M.Ed 116

Pre

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r In

stitu

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Deve

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National Metallurgical Laboratory, Jamshedpur

Steel Authority of India Limited, R&D centre

Metallurgical & Engineering Consultants Limited

Central Mine Planning and Design Institute

TATA steel R&D Center

Birla Institute of Technology, Mesra

National Institute of Technology

Indian School of Mines, Dhanbad

XLRI, Jamshedpur

Indian Institute of Management

National University of Study and Research in Law

Central University of Jharkhand

National Institute of Foundry and Forge Technology

Momentum Jharkhand

Industrial Infrastructure Government owned - Industrial Development Authority

Responsibilities of Industrial Area Development Authorities

►Proactive in Industrial Development in

command districts

►Continuous assistance to Developed/ under

Developed/ Proposed Industrial area

►Single Point assistance to the entrepreneurs

►Assistance in providing basic infrastructure

amenities, Bank finance etc.

JIADA

►No of industrial areas

functioning: 28

►Total Area: 6368 acres

►No. of working units: 2085

Momentum Jharkhand

No Industrial Area Key industries

1 Palamu-Garhwa Mineral & chemical based industries

2 Lohardaga Aluminum industries, power plants

3Koderma-Hazaribagh

Mica based industries, power plant, glass, alloy steels, cement, refractory

4 Ranchi MSME, IT & ITES, food processing

5Dhanbad-Bokaro

Coal industrial area, steel, refractories, coal based power plants

6 SingbhumIron & steel, auto components, cement, IT& ITES, horticulture, food processing, silk and textile

7 Ghatshila Copper and Forest based Industries

8 DeogharGlass, steel, aromatic medicinal plant, coal based power plant, silk textile industries, food processing

Major Industrial Corridors & Connectivity Infrastructure

Major Industrial Corridors

Momentum Jharkhand

Deoghar

Hazaribag

1. Amritsar-Delhi- Kolkata Industrial Corridor (181 Kms)

2. Ranchi-Patratu- Ramgarh Industrial Corridor (70 Kms)

3. Kodarma – Behragora Industrial Corridor (285 Kms)

Road connectivity:

15 National Highways (NH) pass through the state

Major industrial activity is concentrated in an area South

of NH-2, which connects Kolkata with Delhi via Jharkhand

Industrial Corridor connecting Ranchi, Dhanbad and

Jamshedpur forming a 6 lane Golden Triangle.

Rail connectivity:

Total 2182 kms rail network.

Air connectivity:

Domestic airport : Ranchi. Connecting to all metros and

major cities

GoJ already initiated up gradation of Ranchi airport to

international status.

Jamshedpur, Dumka, Dhanbad, Bokaro, Giridih, Deoghar,

Hazaribagh, Daltonganj and Noamundi also have

airstrips.

Source: Jharkhand Economic Survey 2015-16

Energy Sector in JharkhandAmongst the lowest electricity tariff in the country

Committed to Reform Power Sector

Momentum Jharkhand

First State to sign UDAY MoU (5th Jan’16)

Amongst first to unveil “24X7 Power for All” roadmap

Note: 1)MW – Mega Watt 2) IPP- Independent Power Producer 3)UMPPS- Ultra Mega Power Projects 4) JBVNL- Jharkhand Bijli Vitaran Nigam Ltd.

5)EPC- Engineering Procurement Contract 6)PSS- Power Supply Systems 7) MVA – Mega Volt Amp

Target of 100% village electrification by Dec’2016 and 100% Household

electrification by Mar’2018

~22,500MW of power generation projects under various stages of

development

Encouraging IPPs with an option to sell 25% of installed generation

capacity to State.

Two upcoming 4,000MW UMPPs in

Tilaiya and Deoghar

4,000MW NTPC and GoJ (JBVNL) Joint

Venture projects at Patratu

Future coal blocks/ coal linkage

opportunities

Power Generation

Transmission systems worth ~Rs.3,000

Cr. proposed to be developed under

PPP route.

EPC opportunities of worth ~Rs.9,000

Cr.

Power Transmission

Appointment of billing agencies for Urja

Mitra

Nearly 246 new PSS to be

commissioned capacity from 3,818MVA

to 7,412 MVA

Planned investment of Rs.14,000 Cr.

Power Distribution

Investment Opportunities

Dev

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arg

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Healthcare opportunities in Jharkhand

Momentum Jharkhand


100 acres of land parcel, to house Medical College, Super-

specialty Hospital, Nursing & Paramedical Institute,

Diagnostic Center and Laboratories on PPP mode

Medico City, Itki, Ranchi

Other opportunities Setting up of

Super speciality hospitals

Dialysis Centre at all Medical Colleges & District Hospitals

Central Bio Medical Waste Disposal Unit, Centralized

Sterilization Drugs & Consumables : Supply and Setting up

of Manufacturing Plants, as Jharkhand adopted “Free

Drug Policy” in 2015

Schemes / Services PPP Partner

Pathological

Diagnostics ServicesSRL & Medal Healthcare

Radiological

Diagnostics Services

Healthmap Diagnostics Pvt.

Ltd.

‘104’ - Health

Information Help Line

Piramal Swasthya Research

Institute Hyderabad,

‘108’ - Emergency

Ambulance ServicesZiqitza Health Care Ltd.

Successful PPP projects

Fiscal Incentives for establishing Medical College

20, 25, 30 crores grant for Medical College with 50

seats, 100 seats, 150 seats respectively

Many other Fiscal and Administrative Initiatives

Key Opportunities

Momentum Jharkhand

Higher Education

Opening New Universities

Setting up of Wi-Fi campuses and

Digital library in all universities

Setting up of Industry promoted Centre

of Excellences

Establishing campuses of Foreign

universities/technical institutions

Technical Education

Opening New Engineering /

Polytechnic colleges

Management of colleges on PPP

mode

Development of COEs and t-SDIs for

Skill Development

Skill Development

Forging partnership for Skill

Development Centers in existing

institutions

Setting up of 50 Mega Skill

Development Centres

Setting up of Entrepreneurship

Development Fund (EDF)

Higher, Technical Education & Skill DevelopmentA Conducive Climate for Educational Institutions

Indicator Jharkhand India

Higher Education

Gross Enrollment Ratio

(Lakhs)13.1 23.0

College per Lakh Population 8 26

Technical Education

Engineering College density 1 per 20 Lakhs 1 per 7.7 Lakhs

Polytechnic College Density 1 per 11 Lakhs 1 per 3 Lakhs

Allocation of 10 Acres of land for single disciplinary University

and provision of endowment fund of Rs 2 cr.

Allocation of 25 acres of land for Multidisciplinary University

and provision of endowment Fund of Rs 4 cr.

Incentives for Setting up of Private university

Note: 1) COE: Center for Excellence

2) t-SDI: Technical Skill Development Institutes

Operation and Maintenance of Polytechnic and

Engineering Colleges on PPP mode have been

notified.

Momentum Jharkhand

Urban DevelopmentInvestment Potential Across Infrastructure Domains


341 acres Encumbrance free

contiguous land parcel

Transit Oriented

Development (TOD) plan

FSI up to 4 and 35%

ground coverage along

main corridor

In close proximity from City

centre, Hatia Railway

Station, Birsa Munda Airport

Metrorail corridor & transit

oriented hub are proposed

Smart City - Ranchi Other Opportunities

Investment opportunities include:

Convention Centre and Urban Tower in

Ranchi

Jharkhand Urban Planning & Management

Institute, Ranchi

Bus Terminal cum Commercial Complex in

Dhanbd

ISBT at Ranchi and Deoghar

Market Complex in Jamshaedpur

Haz House

Roads and Flyovers across state

Development of Septage & Drainage System

Water Bodies Beautification

Note: 1) ISBT: Interstate Bus Terminal

IT & ITeS Scenario

IT & ITeS initiatives

Innovation Lab1

Venture Capital Fund 2

SPV for Network 3

Setting up of IIIT4

IT Parks 5

Software Parks 6

EMC [1]7

Note: 1) EMC: Electronic Manufacturing Cluster

New policies are being announced for development of IT/ITeS, BPO, ESDM & Start Ups

Key MOUs signed with Oracle, HP, CISCO and now with Siemens, PTC, etc.

Thank You

Po

licy

Lau

nch

► IT/ITeS Policy 2016

► BPO Policy 2016

► ESDM Policy 2016

► Start Up Policy 2016

► Automobile& Auto Component Policy 2016

► Textile, Apparel and Footwear Policy 2016

IT/ITeS Policy 2016Key Highlights

100% reimbursement of Stamp duty, registration fee and transfer duty

Reimbursement of income tax, patent filing, provident fund and interest on loan

Entrepreneurship Development Program

VAT/GST reimbursement

Technology acquisition support

Permission for three shift operation

FAR relaxation

BPO Policy 2016Key Highlights

Up to 100% reimbursement of net VAT/Service tax, electricity duty and lease

rental

Reimbursement of bandwidth/telephone charges, solar power, training and EPF

Relaxation in late shifts for women

Special consideration for units employing 500 or more

Endeavour to outsource government services to local BPO

Initial housing and travelling reimbursement

Solar PV installation support

ESDM Policy 2016Key Highlights


Reimbursement of

Creation of 3 ESDM hubs at Ranchi, Jamshedpur and Dhanbad

Allotment of government land

Test facility center

Relaxation in late shifts for women

Capital investment

Income tax

Interest

Patent filing

Technology acquisition

Recruitment

Provident Fund

Product certification

Employment rebate on cost of

land

Transport & entry tax

Startup Policy 2016Key Highlights


Reimbursement of

Establishment of Jharkhand Venture Capital Fund & Jharkhand Entrepreneurship

Development Fund

Local preference in tendering

Central Incubation Lab (CIL) as hub in Hub & Spoke model for incubation

Upgradation of State funded schools and higher education institutes

Incubation centres in institutions

VAT Patent filing Municipal duties

Lease rental Bandwidth & electricity charges

Automobile& Auto Component Policy 2016Key Highlights

Financial Assistance of 50% for fixed capital investments in building & common

infrastructure to developers of auto clusters, vendor parks etc.

Comprehensive Project Investment Subsidy for investments in Machinery, Plant

& Equipment etc.

Incentive to industries implementing state reservation policy& located in

extremist infested blocks

Net VAT concession on sale of finished goods for 10 years or 150% of capex

spent in first seven years, whichever is earlier.

Stamp Duty &Registration fee Exemption

Textile, Apparel and Footwear Policy 2016 (1/2)Key Highlights – Industry Units

One-time support up to Rs. 13,000 per employee for skill development

Employment generation subsidy of Rs. 5,000 per month per worker for 7 years

for capacity building of workers. Rs. 6,000 for SC/ ST/ Women

Reimbursement of up to Rs. 1,000 per person per month towards expenditure on

ESI and EPF for 5 years

Land will be provided upfront or in 5 equal instalment in five years as per the

rules applicable

Capital Investment subsidy of 20% upto Rs. 50 Crore

VAT subsidy of 100% for 7 years followed by 40% for next 3 years

100% reimbursement of stamp duty

Textile, Apparel and Footwear Policy 2016 (2/2)Key Highlights - Textile, Apparel and Footwear Parks

Assistance of 50% of the project cost or Rs 40 crore, whichever is lower for

Mega parks

Assistance of 50% of the project cost or Rs 7 crore, whichever is lower for other

Parks

Additional capital subsidy up to 10% of the project cost or Rs 10 crore to

Developer availing benefits under GoI India scheme on SITP

Stamp Duty reimbursement of 50%

Export Exhibition Centre at cost of Rs. 20 crore by JIADA

The SPV allowed to allocate land for setting up & starting of operations of units

before completion of park

jharkhand state presentation

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