jharkhand state report - january 2017

11JANUARY 2017 For updated information, please visit www.ibef.org

JHARKHAND THE MINING BASE OF INDIA

JANUARY 2017

22JANUARY 2017

Executive Summary………………………3

Advantage State………………………….. 5

Jharkhand – An Introduction……………..7

State Budget……………………………..17

Infrastructure Status...............................18

Business Opportunities………….………34

Doing Business in Jharkhand ...............56

State Acts & Policies .............................59

For updated information, please visit www.ibef.org


JANUARY 2017


EXECUTIVE SUMMARY … (1/2)

Source: Department of Industry, Government of Jharkhand,

Ministry of Mines


Mineral-rich state• Jharkhand is one of the richest mineral zones in the world. The state boasts of 40% and

29% of India’s mineral and coal reserves, respectively.

Second largest iron ore

deposits

• With 25.7% of the total iron ore (hematite) reserves, Jharkhand ranks second among the

states. During 2015-16, the total iron ore (haematite) reserves in the state were recorded

to be 4,596.621 million tonnes.

Leading producer of

minerals in India

• Jharkhand accounts for 20-25% of the total steel produced in the country. During 2015-16,

the state produced around 20-25% of total steel produced across the country. The

government targets to increase steel production in the state form 14.9 million tonnes in

2015-16 to 25 million tonnes by 2017-18.

Sole producer of coking

coal, uranium and pyrite• Jharkhand is the only state in India to produce coking coal, uranium and pyrite. The state

is also a leading producer of coal, mica, kyanite and copper.


Source: Department of Industry, Government of Jharkhand, Ministry of Mines


Renowned educational

institutes

• Jharkhand has some of the country’s premier engineering colleges, including Birla Institute

of Technology (Ranchi), National Institute of Technology (Jamshedpur) and Indian School

of Mines (Dhanbad), and business colleges such as Xavier Labor Relations Institute

(Jamshedpur) and Indian Institute of Management (Ranchi).

Largest producer of

tussar silk

• Jharkhand is the largest producer of tussar (a non-mulberry silk) in India. During 2015-16,

the state’s contribution to tussar silk production, across the country, was 40%.

Strong growth in tourist

arrival

• Tourist arrivals in the state have increased from 20.45 million in 2012-13 to 33.58 million in

2014-15.

EXECUTIVE SUMMARY … (2/2)



Growing demandExtensive mineral reserves

• Jharkhand has around 40% of the country’s mineral wealth.

• The state is one of the largest producers of coal, mica and copper in India.

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

Policy and fiscal incentives

• Jharkhand offers a wide range of fiscal and policy incentives to industries under the Industrial Policy 2012.

• The state also has policies for IT and SEZs offering sector-specific incentives.

Location advantage

• The state’s industries enjoy a unique location-specific advantage as it is close to the vast market of eastern India.

• It is closer to the ports of Kolkata, Haldia and Paradip and has easy access to raw materials.

Investment potential

• The GSDP of the state grew at a CAGR of 9.09% between 2004-05 and 2015-16.

• The state provides investment opportunities in sectors such as mining and metals, power, infrastructure, manufacturing and food processing.

2017-18

Target

Steel

production:

25 million

tonnes

Advantage

Jharkhand

ADVANTAGE JHARKHAND

2015-16

Steel

production:

14.9 million

tonnes

Source: Department of Industry, Government of Jharkhand, CSO, SEZ India

6


JHARKHAND VISION - 2022

Vision 2022

Improved living

standards

Efficient

& transparent

governance

Sustainable

economic

development

Education

• Primary education.

• Vocational training.

• Promoting equity & social protection.

• Addressing demand side issues.

Healthcare

• Focus on awareness and preventive

measures.

• Targeted campaigns against common

epidemics.

• Government backed health insurance.

• Private participation to fill talent gaps.

Utilities

• Water and sanitation.

• Telecommunication.

• Electricity.

• Security.

• Roads.

E-governance

• Rationalising departments & schemes

• Curbing premature transfers.

• Improving performance & career

management.

• Strengthening the presence and

quality of block administration.

Law & order

• Revamping the law & order structure.

• Community support.

• Counter insurgency program.

Industry interface

• Establishment of a single window clearance

system for investors in the state.

Agro development

• To increase the agricultural productivity

to 2,000 kilograms per hectare.

Mining and minerals

• Mining development and control.

• Social and environmental

compliance.

Power

• Increasing generation to 10,000 MU

and bring AT&C losses to fewer

than 15%.

Forestry

• To utilise the enormous potential of

forests & increase the output by

20%.

Source: Confederation of Indian Industry

For updated information, please visit www.ibef.orgNOVEMBER 2016


JHARKHAND FACT FILE

Jharkhand is located in the eastern part of India. The

state shares its borders with West Bengal in the

east, Uttar Pradesh and Chhattisgarh in the west,

Bihar in the north and Odisha in the south.

Commonly spoken languages of the state are Hindi

and Santhali; Urdu and Bengali are also prevalent.

English is the primary medium of education.

Forests and woodlands occupy more than 29% of

the area under the state.

Jamshedpur, Dhanbad, Bokaro, Deoghar and

Hazaribagh are some of the major cities and

industrial areas in the state.

Jharkhand is rich in mineral resources such as coal (27.3%

of India’s reserves), iron ore (26% of India’s reserves),

copper ore (18.5% of India’s reserves), uranium, mica,

bauxite, granite, limestone, silver, graphite, magnetite and

dolomite.

Source: Government of Jharkhand, Indian Bureau of Mines,

Ministry of Mines, Jharkhand State Portal

Parameters Jharkhand

Capital Ranchi

Geographical area (sq km) 79,714

Administrative districts (No) 24

Population density (persons per sq km) 414

Total population (million) 33.0

Male population (million) 16.9

Female population (million) 16.1

Sex ratio (females per 1,000 males) 948

Literacy rate (%) 66.4


88JANUARY 2017

Parameter Jharkhand All states Source

Economy 2015-16 2015-16

GSDP as a percentage of all states’ GSDP 1.67 100.0Directorate of Economics & Statistics of

Jharkhand, Central Statistics Office

Average GSDP growth rate (%) 14.62 8.64Directorate of Economics & Statistics of


Per capita GSDP (US$) 1,104.4 1,546Directorate of Economics & Statistics of


Physical Infrastructure

Installed power capacity (MW) 2,626.10 304,505.75 Central Electricity Authority, as of June 2016

Wireless subscribers (no) 75,663,4311 1,033,157,014Telecom Regulatory Authority of India, as of

May 2016

Internet subscribers (no) 18,680,0001 334,340,000Telecom Regulatory Authority of India, as of

January 2016

National Highway length (km) 2,653.64 100,087.08 NHAI & Roads and Building Department

Airports (no) 1 125 Airports Authority of India

1Includes Bihar



JHARKHAND IN FIGURES … (1/2)

99JANUARY 2017

Parameter Jharkhand All states Source

Social Indicators

Literacy rate (%) 66.4 73.0 Census, 2011

Birth rate (per 1,000 population) 25.0 21.6 SRS Bulletin

Investments

FDI equity inflows (US$ billion) 0.0931 288.51Department of Industrial Policy & Promotion, April

2000 to March 2016

Industrial Infrastructure

PPP projects completed & operational 6 1.246DEA, Ministry of Finance, Government of India, July

2016

PPP: Public-Private Partnership, SEZ: Special Economic Zone,

SRS: Sample Registration System, 1Includes Bihar


JHARKHAND IN FIGURES … (2/2)


1010JANUARY 2017

13.75 14.78

20.8619.12

21.22

27.93 28.29 27.92 28.66

36.21 36.96

At current prices, the gross state domestic product (GSDP*)

of Jharkhand, for 2015-16, stood at US$ 36.96 billion.

Between 2005-06 and 2015-16, the state’s GSDP grew at a

CAGR of 10.39%.

Source: Directorate of Economics & Statistics of Jharkhand,

Central Statistics Office

GSDP* - Jharkhand Economic Survey 2015-16

GSDP at current prices (in US$ billion)


ECONOMIC SNAPSHOT – GSDP


CAGR

10.39%

1111JANUARY 2017

12.05 12.92

18.4916.61

18.37

23.84 24.19 23.83 24.94

31.3034.10

The net state domestic product (NSDP#) of Jharkhand,

during 2015-16, stood at US$ 34.10 billion.

Between 2005-06 and 2015-16, NSDP of the state grew at a

CAGR of 10.96%.



NSDP# - Jharkhand Economic Survey 2015-16

NSDP at current prices (in US$ billion)


ECONOMIC SNAPSHOT – NSDP


CAGR

10.96%

1212JANUARY 2017

472.4 499.9

695.2628.3

687.6

892.6 891.6 868.3 879.5

1,111.2

1,104.4

Jharkhand’s per capita GSDP^ increased to US$ 1,104.4 in

2015-16, as compared with US$ 472.4 in 2004-05.

Jharkhand’s per capita GSDP increased at a CAGR of

8.86% between 2005-06 and 2015-16.



Per Capita GSDP^ - Jharkhand Economic Survey 2015-16

GSDP per capita at current prices (in US$)


ECONOMIC SNAPSHOT – PER CAPITA GSDP


CAGR

8.86%

1313JANUARY 2017

413.9 437.0

616.0545.5

595.3

761.9 762.5 740.9 765.3

960.51018.9

Jharkhand’s per capita NSDP& stood at US$ 1018.9 in

2015-16 in comparison with US$ 413.9 in 2005-06.

Jharkhand’s per capita NSDP grew at a CAGR of 9.43%

between 2005-06 and 2015-16.



Per capita NSDP& - Jharkhand Economic Survey 2015-16

NSDP per capita at current prices (in US$)


ECONOMIC SNAPSHOT – PER CAPITA NSDP


CAGR

9.43%

1414JANUARY 2017

25.90% 28.08%

41.20%23.45%

32.90%48.47%

2004-05 2015-16

Primary Secondary Tertiary

During 2015-16, the tertiary sectorµ contributed 48.47% to

the state’s GSDP, at current prices, followed by the primary

sectorµ with a contribution of 28.08% and secondary sectorµ

with a contribution of 23.45%.

At a CAGR of 12.9%, the tertiary sector has grown the

fastest among the three sectors, between 2004-05 to 2015-

16. The growth has been driven by trade, hotels, real estate,

finance, insurance, transport, communications and other

services.

Between 2004-05 and 2015-16, the primary and secondary

sectors expanded at a CAGR of 9.9% and 3.6%,

respectively.



Sector-wise percentage share of GSDPµ - Jharkhand Economic

Survey 2015-16

GSDP composition by sector


ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP


CAGR

9.9%

12.9%

3.6%

1515JANUARY 2017

Source: Ministry of Agriculture

CropAnnual production in 2015-16

(‘000 tonnes)

Rice 3,456.4

Wheat 274.4

Pulses 521.8

Food grains 4,262.6

Onion 322.73

Honey 1.20

About 80% of the rural population of the state

depends on agriculture. Rice is the major food crop of

the state, covering 80% of the cropped area. In 2015-

16, total rice production in the state stood at 3,456.4

thousand tonnes.

In 2015-16, total production of horticulture crops in the

state of Jharkhand stood at 4.18 million tonnes, while

the total area under cultivation was 338.2 thousand

hectares. During 2015-16, US$ 6.87 million were

allocated under National Horticulture Mission for the

development of the horticulture sector in the state.

The state’s soil and climatic conditions also support

cultivation of ornamental plants, mushrooms, spices

and tea.

In 2015-16, total production of fruits in Jharkhand

stood at 791.5 thousand tonnes and production of

vegetables stood at 4.28 million tonnes.

The pulses produced in the state mainly include

arhar, urad, moong, kulthi, bengal gram, masur and

peas. At 0.79 tonnes/hectare, productivity of pulses in

Jharkhand exceeds the national average of 0.75

tonnes/hectare.


ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION


Source: Ministry of Agriculture and Farmers Welfare, Department

of Agriculture, Cooperation and Farmers Welfare1 2014-15

2As of November 2015

Funds under National Food Security Mission (NFSM) for

pulses – US$ million

Year Allocated Released Expenditure

2014-15 4.17 2.29 2.90

2015-162

3.46 1.98 0.83


ECONOMIC SNAPSHOT – INVESTMENTS


Source: Department of Industrial Policy & Promotion1Including Bihar

2As of May 2016

FDI equity1 inflows in Jharkhand and Bihar,

2011-12 to 2015-16 (US$ million)

According to the Department of Industrial Policy &

Promotion (DIPP), the cumulative FDI inflows1 in

Jharkhand and Bihar, from April 2000 to March 2016,

totalled to US$ 93 million.

Real estate, mining and construction are among the

major contributors to economic growth of the state.

The New Industrial and Investment Promotion Policy-

2016 was formulated to focus on captive power plants

and IT sector, in addition to providing incentives like

VAT exemption and stamp duty waiver for existing or

new ventures in small-scale sector.

Investment intentions in terms of

IEMs filed, LOIs/DILs issued

Year NumberProposed

investments

2012-13 32 1,711.18

2013-14 17 1,283.84

2014-15 7 61.05

2015-16 6 23.52

2016-172

3 22.60

24

81

11

43

2011-12 2012-13 2013-14 2014-15 2015-16

Major industry players from Singapore are keen on

investing in different sectors such as urban

development, construction energy, infrastructure,

engineering and healthcare in the state of Jharkhand,

as Jharkhand is becoming an investment ready state,

with abundant raw materials, qualified and skilled

human resource, conducive industrial and business

policies and supportive leadership.



SectorsBudget (US $ billion)

2015-16

Percentage of

total

Education 1.22 13.30

Roads & buildings 1.50 16.31

Health including drinking water 0.93 10.07

Rural development 0.92 10.02

Welfare & social welfare 0.93 10.14

Industry & transport 0.13 1.36

Urban development & Panchayati Raj 0.82 8.90

Labour 0.40 4.32

Irrigation & water resources 0.58 6.34

Agriculture & allied activities 0.33 3.59

Energy 0.43 4.72

Food & civil supply 0.36 3.86

Planning & development 0.33 3.55

Others 0.32 3.52

Total 9.21 100

BUDGET 2016-17

Source: Budget at a Glance 2016-17

Budget expenditure for 2016-17 is

estimated to be US$ 9.7 billion.

As per the 2016-17 budget, the

revenue receipts in the state totalled

to US$ 8.52 billion, while capital

expenditure stood at around US$

1.18 billion.

For 2016-17, the fiscal deficit is

estimated to be US$ 0.86 billion

(2.16% of GSDP).


There are 15 National Highways (NH) running through

Jharkhand: NH-2, NH-6, NH-23, NH-31, NH-32, NH-33, NH-

75, NH-78, NH-80, NH-98, NH-99, NH-100, NH-114A, NH-

133, NH-220, NH-333 and NH-343, measuring 2,374 km.

The total length of state highways is around 6,880 km.

The state’s industrial activity is primarily concentrated in an

area south of NH-2, which connects Kolkata with Delhi via

Jharkhand.

In January 2016, under the Centre’s Road Requirement

Plans (RRP), new road and bridge infrastructure worth US$

97.76 million including 11 roads, was allocated to the state

During 2015-16, funds worth US$ 132.14 million were

allocated under Pradhan Mantri Gram Sadak Yojana.

However, funds worth US$ 132.60 million have been

allocated for the state during 2016-17.

During 2015-16, the state was awarded a project of 4-laning

of Mahulia - Baharagora-JH/WB border under EPC, at an

estimated cost of around US$ 152.32 million.

In October 2016, Cabinet Committee on Economic Affairs

(CCEA) approved the construction of a new highway project

worth US$ 292 million between Sahibganj in Jharkhand

(NH-131A) to Manihari in Bihar (NH-133B).

Source: Ministry of Road Transport & Highways

Road type Road length (km)

National

highways2,653.64

State highways 6,880

Rural roads 24,300


Source: Maps of India

PHYSICAL INFRASTRUCTURE – ROADS … (1/2)

1919JANUARY 2017

Source: Ministry Of Road Transport And Highways, Government of Jharkhand, ADB: Asian Development Bank



PHYSICAL INFRASTRUCTURE – ROADS … (2/2)

During 2015-16, Jharkhand was allocated US$ 3.81 million and US$ 12.94 million for the development and maintenance of

national highways in the state.

The Ministry of Roads India has announced plans to expand highways in Jharkhand under the PPP model with an estimated

investment of US$ 890 million.

Under Phase 6 of the National Highway Development Project (NHDP), a 277-km long expressway section between Kolkata and

Dhanbad on NH 2 was approved for upgradation as of August 2015.

Under Prime Minister's Rural Road Scheme, the state plans to construct 3,000 km road by 2017. The Centre will contribute US$

129.65 million, whereas the State’s contribution to the project would be US$ 86.48 million.

Major highways undertaken in Jharkhand

Name of the project NH No. Funded by Length (km) Cost (US$ billion)

Six-laning of Barwa Adda-Panagarh 2 BOT 122.88 0.28

Six-Laning of Aurangabad-Barwa Adda 2 BOT 221.346 0.39

Two lane with paved shoulders of Chas-

Ramgarh 23 NHAI 78.19 0.06

4-Laning of Mahulia to Behragora to

Kharagpur33 & 6 Not available 127 0.16



PHYSICAL INFRASTRUCTURE – RAILWAYS

The total length of railway lines in Jharkhand is 2,181.93 km. The state has

extensive goods-handling facilities available at Ranchi, Bokaro, Dhanbad and

Jamshedpur stations as well as ore-loading facilities at Kiriburu, Lohardaga and

all Central Coalfields Ltd (CCL) coal mines. The dedicated freight corridor

(Eastern Corridor Extension to Kolkata under the Dedicated Freight Corridor

Corporation of India) will pass through the state and is expected to benefit the

industry significantly. The Eastern Freight Corridor is expected to be completed

by 2018.

As of December 2015, the government undertook 21 major railway projects

including construction of 10 new railway lines, 10 projects for doubling of railway

line and one gauge conversion project in the state of Jharkhand in order to

improve the railway network in the state.

In January 2016, Jharkhand government signed a joint venture with the India

railways for developing the state’s railways infrastructure.Source: Maps of India

Railway projects in Jharkhand

Name of the project Year Length (km) Cost 2015-16 (US$ billion)

3rd

line between Dhanbad-Sonnagar 2015-16 429 0.02

Danea-Ranchi Road 2013-14 25.2 0.01

Doubling between Bondamunda-Ranchi 2015-16 166 Not available

Source: Ministry of Railways



PHYSICAL INFRASTRUCTURE – AIRPORTS… (1/2)

A domestic airport is located in the state capital, Ranchi.

Direct links are available from Ranchi to prominent cities

such as Delhi, Patna, Kolkata and Mumbai.

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

Hazaribagh, Daltonganj and Noamundi also have airstrips.

Chartered flights are available between the steel city of

Jamshedpur and Kolkata.

Department of Civil Aviation of the state government plans to

acquire land to develop 12 airstrips in the Chatra, Simdega,

Lohardaga, Godda, Pakur, Latehar, Sahebganj, Jamtara,

Saraikela, Garhwa, Koderma and Khunti districts.

During 2015-16, the state government signed a MoU with

AAI (Airports Authority of India), for setting up an air cargo

complex at Birsa Munda International Airport, located in

Ranchi, in order to promote exports from the state. During

2015-16, the work on construction of the complex was under

way and an amount of US$ 152,760 was allocated by the

state government during 2015-16.Source: Maps of India

Domestic airport

Air strip (Charter Flight Service)

Source: Airports Authority of India



PHYSICAL INFRASTRUCTURE – AIRPORTS … (2/2)

Source: Airports Authority of India

Ranchi aircraft movement (nos.) Ranchi passenger traffic (nos.)

During 2014-15, the Ranchi airport handled 3,496 tonnes of freight. During 2015-16, the freight handled was 4,085 tonnes.

4,523 4,572

6,512

5,302

6,587

7,642

6,592

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

20

15-1

6

273,763363,441

491,418 463,738517,006

653,832739,961

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

20

15-1

6

2323JANUARY 2017

As of June 2016, Jharkhand had a total installed power

generation capacity of 2,626.10 MW, comprising 1,324.05

MW under state utilities, 916.19 MW under private sector

and 385.86 MW under central utilities.

Backed by large coal reserves in the state, of the total

installed power generation capacity in the state, 2,404.93

MW of capacity was contributed by coal-based thermal

power plants.

Besides, the state has total 200.9 MW of installed

hydropower generation capacity and 20.05 MW from

renewable sources. Per capita electricity consumption in the

state was recorded to be 552 kWh, as compared to the

country’s average of 1,010 kWh, during 2015-16. Source: Central Electricity Authority

Installed power capacity (MW)


PHYSICAL INFRASTRUCTURE – POWER


1,983.8

3,037.8

2,269.9 2,579.8 2,579.8 2,625.9 2,626.1

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

20

15-1

6

During April to September 2015, the government electrified 109 villages in the state of Jharkhand. As of October 31, 2015, about1,469,000 rural households were electrified. As of March 2016, 750 villages were electrified in the state, while the remainingvillages are expected to be electrified under various state and central government schemes, by December 2016.

Adani Group is planning to invest sum of US$ 7.47 billion in the state of Jharkhand. Under this investment scheme, the group isplanning to set up a 1600 MW thermal power plant in district of Godda.

By December 2016, the state plans to sign power purchase agreements (PPAs) for a total of 1.1 GW solar projects auctioned atthe beginning of the year.

In December 2016, NTPC successfully exposed seam-III in its first coal mine-Pakri Barwadih located in Jharkhand, after removalof over burden of 7 lakh cubic metre. Coal production from this mine is expected to begin shortly, and can be supplied to anyproject of the company.

2424JANUARY 2017

Telecom infrastructure ( As of May 2016)

Wireless subscribers1

75,663,431

Wireline subscribers1

330,279

Internet subscribers1

18,680,0002

Tele-density 55.09

Post offices2

3,480

Source: Telecom Regulatory Authority of India, India Post 1Including Bihar, 2As of January 2016

According to estimates from Telecom Regulatory Authority of

India (TRAI), the states of Jharkhand and Bihar had

330,279 wire-line subscribers and 75.66 million wireless

subscribers, as of May 2016.

By the end of May 2016, 7,846,805 subscribers had

submitted requests for mobile number portability in the state.

As of December 2015, the state had 3,099 post offices.

In an attempt to encourage mobile banking in rural pockets

of the state, Jharkhand government has decided to waive

Value Added Tax (VAT) on mobile phones worth less than

US$ 76.91.


PHYSICAL INFRASTRUCTURE – TELECOM


Major telecom companies in Jharkhand

Bharat Sanchar Nigam Limited (BSNL)

Vodafone Essar

Reliance Communications

Idea Cellular

Tata Teleservices

Bharti Airtel

Aircel Limited


DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE


Source: Ministry of Urban Development, Government of India

City Water supply Solid waste management system

Ranchi

• As per City Development Plant (CDP) of Ranchi, the

demand for water is expected to increase to 751 million

litres per day (MLD) by 2036.

• Around US$ 64.85 million of investment has been

envisaged up to March 2015.

• Solid-waste generation is expected to increase to

602 tonnes per day (TPD) in 2026.



Dhanbad

• As per CDP of Dhanbad, the demand for water is

expected to increase to 413 MLD by 2026.



• Solid-waste generation is expected to increase to

776 TPD in 2026.



Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), five projects costing US$ 173.2 million were sanctioned for

urban centres such as Ranchi, Dhanbad and Jamshedpur. The key areas of development are solid waste management systems and

water supply.

Department of Urban Development of the state government has schemes for development of urban transport, water supply, sewerage,

solid waste management and other civic amenities. The state has proposed an outlay of US$ 1.2 billion for urban development in its

12th Five Year Plan (2012–17).

Under the Atal Mission for Rejuvenation and Urban Transformation, (AMRUT), seven cities/towns were identified for urban

development, namely – Dhanbad, Ranchi, Deogarh, Adityapur, Hazaribag, Chas and Giridih.


DEVELOPMENT PROJECTS: KEY PUBLIC–PRIVATE PARTNERSHIP (PPP) PROJECTS


Source: Ministry of Finance, Government of India

Project name Type of PPP Sector StatusProject cost

(US$ million)

Ranchi Ring Road Project

(Section 3, 4, 5 and 6)

Build-Operate-Transfer

(BOT) AnnuityTransport Operational 102.87

Road Upgradation (Ranchi-

Patratu Dam Road) Project



Road Upgradation (Patratu

Dam-Ramgarh) Project



Road Upgradation (Adityapur-

Kandra) Project



Road Upgradation (Chaibasa-

Kandra-Chowka Road) Project



Hazaribagh-Ranchi NH-33

Road Project



2727JANUARY 2017

Education infrastructure in Jharkhand (2015)

Universities 13

Medical colleges 3

Dental colleges 3

Community colleges 3

Engineering colleges (Government +

Private) 45

Jharkhand has a literacy rate of 66.4%; the male literacy rate is 77%

and the female literacy rate is 55.2%.

Birla Institute of Technology (Ranchi), National Institute of

Technology (Jamshedpur) and Indian School of Mines (Dhanbad)

are among the well-known engineering colleges in the country. The

Xavier Labour Relations Institute in Jamshedpur is one of the

premier business schools in India.

The state has five reputed research institutes, which are involved in

research in the fields of iron and steel, mining and metallurgy. The

state government has earmarked an investment of US$ 4.8 billion

under the 12th Five Year Plan to strengthen the education

infrastructure.

Jharkhand Education Project Council, in collaboration with Sampark

Foundation, launched Sampark Smart Shala program with an

investment worth USD5.94 million to reach 26,000 primary schools

in the state.


SOCIAL INFRASTRUCTURE – EDUCATION


Literacy rates (%)

Literacy rate 66.4

Male literacy 76.8

Female literacy 55.4

Source: Ministry of human resource development

Jharkhand - upgradation of primary to upper primary and upper

primary to secondary schools, up to 2014-15

Primary to upper primary

schoolUpper primary to secondary schools

10,288 1,002

The state has 4 medical colleges, which are

under construction, including one Ayurvedic

medical college, 2 Unani medical colleges and

1 Homeopathic medical college.

2828JANUARY 2017

Health indicators of Jharkhand (2015-16)

Birth rate1

24.6

Death rate1

5.7

Infant mortality rate2

36

Jharkhand has 346 primary health centres (PHCs), 3,964

sub-centres, 24 district-level hospitals, 13 sub-district

hospitals and 256 community health centres (CHCs).

The broad objectives of the state’s Department of Health

include enhancing maternal and child healthcare, stabilising

population growth and improving nutritional status.

The state stresses upon empowerment of women and

inclusion of non-profit organisations to achieve its

objectives.

Government of Jharkhand has drafted a policy for

establishment of super-speciality hospitals, medical and

nursing colleges and paramedical institutes.

The state government built a 500-bed hospital in Ranchi.

During 2015-16, 156 new health sub-centres and 30

primary health centres were constructed by the state

government. In the 2016-17 budget, the state government

announced its plans to build five community health centres,

25 primary health centres and 50 sub centres, in the state.


SOCIAL INFRASTRUCTURE – HEALTH … (1/2)


Health infrastructure of Jharkhand

(As of November 2015)

Active primary health centres 346

Active sub-centres 3,964

Active community health centres 256

Active district hospitals 24

Active sub-district hospitals 13

Ayurveda hospitals 1

Homeopathy hospitals 4

Source: Jharkhand State Portal, Sample Registration System (SRS)

Bulletin, 1Per thousand persons, 2)Per thousand live births

2929JANUARY 2017

Ranchi Sadar Hospital PPP Project, Jharkhand

• 500-bed hospital at Ranchi to become the first healthcare institution in India to be operated under PPP model.

• The Government has signed MoU with International Finance Corporation (IFC) to provide advisory services for project.

• IFC will help the state government in development and operation of the hospital campus under the PPP model.

• The state plans to set up a 100-seat medical college in the hospital campus.

• Sadar Hospital Project is estimated to have cost US$ 526,840 and is awaiting inauguration.

• The state government plans to operate two other hospital as well as a few district hospitals under the PPP model.



SOCIAL INFRASTRUCTURE – HEALTH … (2/2)

Source: International Finance Corporation, State Budget 2015-16,

MoU: Memorandum of Understanding, PPP: Public Private Partnership

In Annual Plan 2016-17, the Department of Health, Medical Education and Family Welfare of the Government of Jharkhand

proposed the construction of 150 new health sub-centres, 30 new primary health centres and 5 new community health centres.

Additionally, for setting up 500-bed hospitals at Kharsawan and Dumka, the Government of Jharkhand proposed an allocation

of US$ 6.64 million during 2016-17.

3030JANUARY 2017

The culture of Jharkhand encompasses its languages, dance, drama, music and painting and is characterised by the distinct tribal or

folk forms. The state has around 30 indigenous tribes including nine primitive ones. The state government has established Chhau

Dance (a form of folk dance) Centre at Saraikela and Bharatiya Nritya Kala Mandir at Ranchi and Dumka. Jharkhand has some well-

known historic and pre-historic sites such as Maluti Temple, Palamu Fort, Tanginath Temple and Haradih Temple, which are being

conserved by the Archaeological Survey of India. There are two museums in the state, one each at Ranchi and Dumka.

The state of Jharkhand has six sports training centres – three for hockey, two for athletics and one for football – located in Ranchi,

Gumla and Latehar. Ranchi also has an 18-hole golf course.

Tourist arrivals in the state increased from 20.45 lakh in 2012-13 to 33.58 lakh in 2014-15. As per economic survey 2015-16,

Government of Jharkhand announced plans to introduce a tourism guide training centre in Ranchi for training tourist guides regarding

tourism related services.


CULTURAL INFRASTRUCTURE


PPP Projects

Project name Sector Status Project authorityProject cost

(US$ million)

City Centre at AdityapurSocial and commercial

infrastructureOthers

Adityapur Industrial Area Development

Authority (AIADA)24.88

Jaipal Singh Stadium Sports

& Commercial Complex

Social and commercial

infrastructureOthers Ranchi Municipal Corporation --

National Games Housing

Complex at Ranchi

Social and commercial

infrastructureUnder construction

Department of Arts, Culture, Sports &

Youth Affairs, Jharkhand41.47

Source: Jharkhand State Portal, State Budget 2015-16

3131JANUARY 2017

Industrial areas

Palamu-Garhwa Industrial

AreaDhanbad-Bokaro Industrial Area

Lohardaga Industrial Area Singbhum Industrial Area

Koderma-Hazaribagh

Industrial AreaGhatshila Industrial Area

Ranchi Industrial Area Deoghar-Jasidih Industrial Area

Jamshedpur is the original industrial town in the state where the

Tata Group set up their first steel plant, more than a century

ago. It is a privately run township and currently has several

types of industrial units including automotive, metals,

chemicals, electrical and electronic goods.

Several other industrial areas have been developed in the state

based on the location of mineral reserves and related down-

stream industries. An SEZ has been notified at Adityapur

(adjoining Jamshedpur) for the automotive industry. A private

sector consortium has been selected for developing the SEZ.

Appreciating the requirement of advanced tool room for

manufacturing industries, an Indo-Danish tool room and training

centre has been set up in Jamshedpur. The state government

plans to set up and promote three-tier growth centres at the

mega, mini and micro levels. As of December 2015, there are

two functional export oriented units in the state of Jharkhand.


INDUSTRIAL INFRASTRUCTURE … (1/2)


Growth areas

Mega-growth areas Barhi, Hazaribagh

Mini-growth areasFood Park (Ranchi) Apparel Park

(Chaibasa)

Micro-growth centresAt the block-level to boost village-

based industries

PPP projects

Project name Sector Status Project authority

Tilaya Ultra Mega Power Project Energy Under construction Power Finance Corporation Ltd

Source: infrastructureindia.gov.in

Source: Jharkhand State Portal


INDUSTRIAL INFRASTRUCTURE … (2/2)


Source: Adityapur Industrial Area Development Authority, Jharkhand State Portal

ParametersAdityapur Industrial Area Development

Authority (AIADA)

Ranchi Industrial Area Development Authority

(RIADA)

Controlled area (acres) 33,970 1,524

Allotted plots (No) 1,365 682

Units established (No) 893 540

Major industries

Heavy and light engineering, ferro-casting,

chemicals, plastic and rubber, forging and mineral-

based units.

Engineering (machining fabrication), mines and

mineral-based units, chemicals, electrical and

electronics, metallurgy (foundry and forge), casting

and rolling, plastics and rubber.

The state government has identified 56 clusters including refractory cluster at Dhanbad; mini cement cluster at Ramgarh; bell metal

cluster at Bishnugarh, Hazaribagh and Khunti; steel processing cluster at Giridih; hard coke cluster at Dhanbad; and forging and

hand tool manufacturing cluster at Bhendra, Bokaro. Jharkhand has three industrial area development authorities with headquarters

at Adityapur, Bokaro and Ranchi. Another such development authority is being formed at Santhal Pargana.

These authorities are responsible for acquisition of land and development of infrastructure facilities such as roads, drainage, parks,

water supply and public utilities within their jurisdiction.

As of August 2015, there were 215 industrial training institutes (ITIs) in Jharkhand with a total seating capacity of 46,792. Out of

these 215 ITIs, 194 ITIs are privately controlled while 21 are controlled by the government.


AMRUT AND SMART CITIES

Cities PopulationArea

(sq km)

Literacy

rate

Ranchi 2,914,253 5,097 76.06%


Ranchi is proposed to be developed as a smart city,

by the government.

Source: TechSci Research, News Article

Seven cities in the state have been identified under

Atal Mission for Rejuvenation and Urban

Transformation (AMRUT) as of October 2015.

US$ 0.8 million was allocated to the state of

Jharkhand for administrative and office expenses

(A&OE) in order to prepare the Service Level

Improvement Plan (SLIP)/Capacity Building (CB). In

July 2015, the Ministry of Urban Development of

Government of India released US$ 0.29 million as

advance for the 7 cities under AMRUT guidelines.

Classification of AMRUT cities in Jharkhand

on the basis of population

Number of AMRUT cities with population less than

1 million 5

Number of AMRUT cities with population

in the range of 1 – 10 million2

Number of AMRUT cities with population

greater than 10 million0

Total Number of AMRUT cities 7

3434JANUARY 2017

The natural resources, policy incentives and location-

specific advantages of Jharkhand support investments in

sectors such as mining and metal extraction, engineering,

iron and steel, and chemicals.

As Jharkhand has around 40% of the country’s mineral

wealth, its extensive mineral resources make mining, metals

and related sectors especially lucrative for investments.

Forests account for 29% of the land area in Jharkhand with

thriving bio-diversity, fertile land and moderate climate.

Almost 75% of the population in Jharkhand depends on

agriculture or agriculture related occupations. The state

produces a variety of cereals, crops and vegetables.

Jharkhand Industrial Policy, 2012, has been formulated with

the objective to convert Jharkhand into a favoured

destination for investors and promote sustainable industrial

growth in the state. Under its industrial policy, the state

government has planned to promote cluster development of

industries under existing schemes of the central

government.


KEY INDUSTRIES … (1/2)


Key industries in Jharkhand

• Mining and mineral extraction

• Engineering

• Iron and steel

• Chemicals

• Handloom

• Food and beverages

• Plastics and rubber

• Printing and packaging

• Tourism

• Automotive

• Cement

Major minerals of Jharkhand

• Coal

• Iron ore

• Copper

• Aluminium

• Graphite

• Mica

• Manganese

• Uranium

3535JANUARY 2017

Status of industrial areas

SectorNo. of industrial areas functioning

Land available in acres No. of working units

Number Area in acres

RIADA, Ranchi 17 1,392.57 47.67 398

BIADA, Bokaro 4 1,470.59 78.46 517

AIADA, Jamshedpur 1 2,955.76 40.00 1,135

SPIADA, Dumka 6 1,044.15 450.17 35

During 2015-16 (up to June 2015), the number of MSME units in the state was recorded at 408, which provided employment to

around 2,256 people.

Between 2014-15 and 2015-16, about 5,855 industrial units were established in the state, which provided employment

opportunities for 25,370 people.


KEY INDUSTRIES … (2/2)


Source: Department of Industry, Government of Jharkhand

3636JANUARY 2017

Jharkhand is the only producer of prime coking coal, dolomite, limestone, mica, graphite, manganese, china clay, coal bed methane,

soap stone, fire clay, apatite, uranium, phosphorite, gold, pyroxenite, quartz and feldspar. Mineral Resources in Jharkhand:

The haematite region in Jharkhand has reserves of over 3,000 million tonnes. Out of these, 2,000 million tonnes of reserves are in

Chiria, near Monoharpur in district Singbhum. It is one of world’s largest single deposits. Chiria deposits have around 62-63% iron

content and have the potential of a large mine having production capacity of 10 million tones per annum. During 2015-16, Jharkhand

had 4.6 billion tonnes reserves of iron ore.

The state’s coal reserves are estimated at around 69,128 million tonnes, present in Jharia, Bokaro, Rajmahal, Hazaribagh and

Chatra areas. These areas are the major coking coal regions of India of which Jharia coal field is the biggest in India. The state had

80.4 billion tonnes resources of coal during 2015-16.


KEY INDUSTRIES – MINING AND METALS … (1/4)


Coal resources in Jharkhand (million tonnes)- as of April 2015

Proved Indicated Inferred Total reserves

41,463 33,026 6,559 81,049

Jharkhand has 22 limestone mines with a total reserve of 563 million tonnes. The limestone mines are located in the districts of

Palamau, Hazaribagh, Singbhum and Ranchi. Jharkhand possesses all grades of limestone, namely - BF, SMS and cement grade.

During 2015-16, the state had 634.41 million tonnes of limestone resources.

Palamau district of Jharkhand has a major share of the graphite reserves. In the Palamau district, important reserves are in Sokra,

Satbarba and Barwadih areas. Here, flaky and amorphous forms of graphite are found. Sokra has 0.6 million tonnes of reserves with

50-60% carbon content.

Source: Ministry of Mines, Ministry of Coal, Government of India

3737JANUARY 2017

As on June 2015 Jharkhand accounted for about 40% of India’s

total mineral reserves. Jharkhand stands 1st in coal reserves, 2nd in

iron ore reserves, 3rd in copper ore reserves and 7th in bauxite

reserves in the country.

During 2015-16, Jharkhand accounted for 25.7% of the total iron

ore reserves in the country.

Jharkhand accounts for 20-25% of the total steel produced in the

country. During 2015-16, the state recorded steel production of

14.9 million tonnes. The government targets to increase steel

production to 25 million tonnes by 2017-18.

Source: Department of Mines & Geology, Government of Jharkhand,

Jharkhand State Mineral Development Corporation,

Department of Atomic Energy, Government of India

Jharkhand’s share in India’s mineral reserves




36%

29%26% 30%

18%

5%

40%

Ro

ck

Phosph

ate

Co

al

Iron

ore

Apatite

Co

ppe

rore

Silv

er

All

Min

era

ls

Granite and ornamental stones – The granite and ornamental stones reserves of Jharkhand include dolomites, gabber, banded

hematite jasper and migmatites.

Mica - Jharkhand is the leading producer of mica and has 46% of India’s mica reserves.

Copper - Copper ore deposists are present in East Singbhum region. Copper ore reserves in Jharkhand are around 110 million

tonnes.




Source: Indian Bureau of Mines

Production of MCDR (Mineral Conservation and Development Rules) minerals

Name of mineral Unit 2013-14 2014-15

Bauxite Tonnes 2,282,428 2,024,968

Copper ore Tonnes 398,569 180,496

Copper concentrate Tonnes 13,741 5,902

Gold ore Tonnes 7,552 4,232

Iron ore ‘000 tonnes 22,557 19,578

Manganese ore Tonnes 4,701 4,367

Dolomite Tonnes 267,146 135,319

Felspar Tonnes 5,476 3,252

Flint stone Tonnes 459 269

Graphite Tonnes 43,717 41,251

Kaolin Tonnes 600 70,623

Limestone ‘000 tonnes 1,902 792

Quartz Tonnes 27,244 14,730

3939JANUARY 2017

Tata Steel Ltd

Jindal Steel & Power

Ltd (JSPL)

Hindalco Industries

Ltd (HIL)

Steel Authority of India

Ltd (SAIL)


• Established in 1907, Tata Steel is one of the world’s largest steel manufacturers. The company recorded

consolidated revenues of US$ 17.89 billion in 2015-16. The company is setting up a 12 million tonnes

per annum (MTPA) greenfield integrated steel plant in the state at Seraikela, supported by a state-of-

the-art plant in Jamshedpur with a capacity of 7 MTPA. Meanwhile, one of Tata’s joint venture company

set up a new 250,000 tonnes production facility at Bara, Jamshedpur to manufacture Zinc-Aluminium

coated coils.

• JSPL is a leading player in steel, power, mining, oil and gas, cement and infrastructure. The

company recorded consolidated revenues of US$ 2.81 billion in 2015-16. The company plans to

invest US$10 billion in setting up a 12-MTPA integrated steel plant and a 2,640-MW captive power

plant in the state. A 3-MTPA steel plant at Patratu near Ranchi is expected to be commissioned by

2016.

• HIL, a part of the Aditya Birla Group, is the world's largest aluminium rolling company and one of

the biggest producers of primary aluminium in Asia. Hindalco's alumina refinery with 450,000 TPA

capacity is located at Muri. It has the distinction of being the first alumina refinery in India. The

company also has a 30 MW, coal-based captive power plant. It generated revenues of US$ 15.28

billion in the 2015-16.

• SAIL is one of the leading steel-making companies in India. It is owned by the Government of

India. The company operates a steel plant at Bokaro in Jharkhand. SAIL has the well-equipped

Research and Development Centre for Iron and Steel (RDCIS) as well as an in-house centre for

engineering and technology, a management training institute and a safety organisation at Ranchi.

It generated revenues of US$ 6.03 billion in the 2015-16.



4040JANUARY 2017

The major growth drivers of the engineering industry in

Jharkhand are availability of raw material (iron and steel,

aluminium, copper and other metals and non-metals),

power, water and industrial labour.

Numerous heavy engineering companies located in the

state produce equipment and provide turnkey and

consulting services to the existing metal and mining

industry.

Bokaro and Jamshedpur are the major engineering clusters

in the state.


KEY INDUSTRIES – ENGINEERING … (1/2)


Some of the key players

• McNally Bharat Engineering Company Ltd

• TRF Ltd

• Timken India Ltd

• Mecon Ltd

4141JANUARY 2017

McNally Bharat

Engineering Co Ltd (MBE)

TRF Ltd

Timken India Ltd

Mecon Ltd


• MBE is one of the leading engineering companies in India. It is engaged in providing turnkey

solutions in the areas of power, steel, aluminium, material handling, mineral beneficiation,

pyroprocessing, pneumatic handling of powdered materials including fly ash handling and high

concentrate disposal, coal washing, port cranes, and civic and industrial water supply, among

others. MBE has constructed over 300 plants on turnkey basis. One of its heavy fabrication

units and the machine shop facility are based at Kumardhubi in Jharkhand.

• TRF Limited (formerly, Tata Robins Fraser Limited), was incorporated in 1962 and is part of the

Tata Group. It provides solutions for material handling systems and equipment in infrastructure

sectors such as steel, power, port and mining. In 2015-16, total revenues of TRF were around

US$ 82.98 million. The manufacturing facility of the company at Jamshedpur is spread over

around 22 acres, which includes six covered manufacturing bays spanning around 21,250 sq m.

• Timken India Limited is a subsidiary of The Timken Company, US. The company’s principal

activity is production of tapered roller bearings at its Jamshedpur plant. Timken provides friction

management solutions for a wide range of industry applications. In 2015-16, total revenues of

the company were around US$ 162.22 million.

• Mecon Limited is a public sector undertaking under the Ministry of Steel (Government of India),

with interest in the metals, power, oil and gas, and infrastructure sectors.

• Mecon is an engineering, consultancy and contracting organisation and offers a range of

services required for setting up of projects from concept to commissioning, including turnkey

execution. The company employs around 1,285 engineers, scientists and technologists. Mecon

has its head office in Ranchi.


KEY INDUSTRIES – ENGINEERING … (2/2)

4242JANUARY 2017

The chemical industries in Jharkhand produce a wide range of chemicals such as caustic

soda, dye and pigments and industrial and medical gas. The industry has developed to serve

other manufacturing units in the region and the markets of eastern India. The state has

established chemical clusters in the Sahibgunj, Bokaro, Dhanbad, Hazaribagh and Deoghar

districts to promote investments from micro, small and medium enterprises (MSMEs).

Projects & Development India Limited (PDIL) Catalysts Division which is located in Sindri

(Jharkhand) is a manufacturer and supplier of catalysts used in ammonia plants and other

industries

Fertiliser Corporation of India Limited (FCIL) controlled a fertiliser plant at Sindri. However,

no production activities were carried out at the unit since March 2002. The plant spans over

an area of about 500-600 acres and has an installed capacity to manufacture 1.3 million

metric tonnes of urea. Last year, the government had approved revival of the unit, through

bidding route. However, the bidding process could not be carried forward due to receipt of

only one application. In July 2016, the government agreed to revive the plant by forming a

Special Purpose Vehicle (SPV) of public sector units at an estimated cost of US$ 916.60

million.


KEY INDUSTRIES – CHEMICALS & FERTILISERS … (1/2)


Key players in chemicals

• Aditya Birla Chemicals (India) Ltd

• Tata Pigments Ltd

• BOC India

Cumulative requirement (R) & availability (A) of fertilizers (‘000 tonnes) during the year 2014-15 to 2015-16

Year Urea DAP MOP NPK

R A R A R A R A

2014-15 225 180.17 75 27.08 16 0.63 55 26.26

2015-16 65 63.6 25 22.68 5 0.82 22.5 18.41

Source: Ministry Of Chemicals And Fertilizers, DAP: Diammonium Phosphate, MOP: Muriate of Potash,

NPK: Nitrogen, Phosphorous and Potassium Fertilisers

4343JANUARY 2017

Aditya Birla Chemicals (I)

Ltd

Tata Pigments Ltd

Linde India


• Aditya Birla Chemicals (India) Limited (formerly, known as Bihar Caustic and Chemicals Limited)

is one of the leading chlor-alkali companies in India.

• The caustic soda plant of the company is located at Garhwa Road in the Palamau district of

Jharkhand. It was commissioned in 1984. The installed capacity of the plant is 105,000 tonnes

per annum.

• The company’s product range includes caustic soda lye, liquid chlorine, hydrochloric acid,

sodium hypo-chlorite, compressed hydrogen gas, aluminium chloride and stable bleaching

powder. The company also has a 30 mega watt captive power plant for uninterrupted power

supply.

• Formed in 1927, Tata Pigments Limited is one of the largest producers of synthetic iron oxide

pigments in India. In 2014-15, the company’s total turnover stood at US$ 16.59 million.

• The company has a manufacturing plant in Jamshedpur.

• Linde India, formerly known as BOC India, started operations in 1935 as Indian Oxygen and

Acetylene Company and is now a subsidiary of the Linde Group.

• The company produces industrial gas, medical gas and specialty gas that it supplies across the

country. BOC also carries out special projects. BOC India is constructing a 2,550-tonnes per day

Air Separation Unit (ASU) for Tata Steel at Jamshedpur. In 2015 (January to December), it

generated US$ 244.21 million in revenues. The company recorded revenues of US$ 61.96 million

during January-March 2016.


KEY INDUSTRIES – CHEMICALS … (2/2)

4444JANUARY 2017

During 2014-15, cement production in Jharkhand totalled 1.58

million tonnes. The major cement companies in Jharkhand are

ACC Ltd, Jaypee Group and Lafarge India. The state has four

large cement plants with an installed capacity of 8.48 million

tonnes.

The state of Jharkhand has vast reserves of crystalline

limestone, ranging from Garhwa district to Bokaro district.

Exploration of limestone in this area would help in developing

cement plants in the state.

With the reserves of cement grade limestone, this region is well

suited for creating additional capacities, both in large and mini

cement plants.

During 2015-16, Jharkhand had around 634.41million tonnes of

limestone reserves.


KEY INDUSTRIES – CEMENT … (1/2)


Key players and their locations

• ACC Ltd – Chaibasa and Sindari

• Lafarge India - Jamshedpur

• Jaypee Group – Bokaro

Source: Department of Mines & Geology, Department of Industry,

Cement Manufacturing Association

Government of Jharkhand

In August 2015, Birla Corporation entered into an

agreement with LafargeHolcim to purchase the cement

grinding facility owned by the latter at Jojobera. The

cement grinding unit has an installed capacity to grind

4.6 million metric tonnes of cement. However, the deal

was called off in February 2016, due to regulatory

hurdles over the transfer of mining rights with these

assets. LafargeHolcim restarted the process and on July

11, 2016, announced that it had entered into an

agreement to sell its assets in Lafarge India to Nirma for

US$1.4 billion to get the Competition Commission of

India's clearance for the deal as part of the global

merger.

4545JANUARY 2017

ACC Ltd

Lafarge

Jaypee Group


• ACC Limited is one of the largest cement manufacturers in India with a country-wide network of

factories and marketing offices. The annual revenue of the company for the year 2015 was US $

1.83 billion. For the quarter ending March 2016, the company recorded revenues of US$ 444.90

million.

• The company has two plants in Jharkhand – one at Chaibasa with a capacity of 870,000 tonnes

per annum (TPA) and another at Sindri with a capacity of 910,000 TPA. ACC Cement plans to

expand capacity of its Sindri unit to 2.5 MTPA, with an estimated investment of US$ 55.2 million.

• Lafarge India is a subsidiary of the French building materials major. The company entered the

Indian cement market in 1999 with the acquisition of the cement business of Tata Steel.

• Lafarge has four cement plants in India, of which one is located at Jharkhand.

• The plant serves the cement market in eastern and central India.

• In 2014, the company had 3 cement plants in India with a market share of 20% in the cement

market.

• Jaypee Group is the third largest cement producer in the country and produces a special blend

of Portland Pozzolana cement under the brand name ‘Jaypee Cement’. Its cement division

currently operates modern, computerised process control cement plants with an aggregate

installed capacity of 28 MTPA.


KEY INDUSTRIES – CEMENT … (2/2)

MTPA: Million tonnes per annum

4646JANUARY 2017

The automotive industry in Jharkhand includes original

equipment manufacturers as well as auto component

production units.

The auto components produced range from simple items

such as nuts and bolts to complex ones such as shafts,

radiators and axles.

The state has an auto cluster in Adityapur and one auto

cluster is coming up near Jamshedpur. The Adityapur

Industrial Development Area is one of the largest auto

ancillary hubs in the country.

More than 600 auto ancillary industries, including auto

components units, have been set up subsequently at

Jamshedpur and Adityapur to cater to the needs of

automobiles companies.

As per the Jharkhand Automobile and Auto-Component

Policy 2015, an automobile vendor park is planned to be

established under PPP or private mode by mega

automobile manufacturing units in the state. Under this

policy the government plans to create additional

employment opportunities for 50,000 personnel in this

sector by 2020 and encourage establishment of Tier-1, Tier-

2 and Tier-3 auto-component manufacturers in the state.


KEY INDUSTRIES – AUTOMOTIVE … (1/2)


Key players

• Tata Motors Ltd

• Apex Auto Ltd

• JMT Auto Ltd

4747JANUARY 2017

Tata Motors Ltd

Apex Auto Ltd

JMT Auto Ltd


• Tata Motors Limited is one of India's largest automobile companies and has global presence. The

consolidated revenue generated by the company stood at US$ 42.09 billion in 2015-16.

• The company’s manufacturing base is spread across India. It has a plant at Jamshedpur in Jharkhand.

• The company is focusing on enhancing the look and feel of its commercial vehicles through DesignNext

program.

• In 2013 - Tata Nano crossed 3 million fans on Facebook and became India’s number one auto

brand.

• Tata Indigo eCS entered Limca Book of Records

• Tata Motors Jamshedpur plant manufactured its 2 millionth truck

• For the first time in the industry Tata Nano offered ‘Swipe your credit card and drive home a

Nano’

• Tata Motors has launched Tata PRIMA trucks in Sri Lanka

• Apex Auto was incorporated in 1994 and manufactures excavator components.

• The company’s manufacturing plant is located at Adityapur near Jamshedpur.

• JMT manufactures automobile ancillaries, ancillary gear boxes, axle components, gearboxes and

excavator components. Its plant is located at Adityapur in Jharkhand.

• The company exports products to Malaysia, Dubai, the US, Brazil and other countries, besides

supplying to large industries such as Tata Motors, Telcon, TAFE, L&T-Komatsu Ltd, Tata Cummins

and Caterpillar in India.


KEY INDUSTRIES – AUTOMOTIVE … (2/2)

4848JANUARY 2017

Jharkhand has a varied agricultural product base that supports a

host of agro-based industries. The state’s soil and climatic

conditions also support the cultivation of ornamental plants,

mushrooms, spices and tea.

Birla Institute of Technology (BIT), Ranchi, conducts a three-

year undergraduate course on food processing technology. The

institute, in collaboration with Department of Welfare,

Government of Jharkhand, conducts training programmes on

food processing techniques.

Egg production in the state increased from 466.4 million units in

2014-15 to 489.05 million units in 2015-16. Meat production in

the state increased from 47.84 thousand tonnes in 2014-15 to

51.08 thousand tonnes in 2015-16, while, milk production in the

state increased from 1,733.72 thousand tonnes in 2014-15 to

1,815 thousand tonnes in 2015-16.

The state is undertaking focused efforts to promote pisciculture.

Over the past decade, fish production in Jharkhand has

increased to 72,000 tonnes from 14,000 tonnes. During 2015-16

(up to July 2015), 42.07 thousand tonnes of fish was produced

in the state.

The rural population can participate as cooperatives and self

help groups, among others to ensure the development of

piggery, goatery, dairy and poultry in the organised sector.

Lok capital plans to invest US$ 6.7 million in OSRAM, a Ranchi

based HR food processing firm, which is into manufacturing of

dairy products.


KEY INDUSTRIES – AGRO-BASED … (1/2)


Key players

• Swastik Group

• We Group Mushroom

MSME: Micro, Small and Medium Enterprises

Jharkhand - Funds for implementation of National Mission

on Food Processing (NMFP), 2014-15 (US$ million)

Allocation GOI share released

0.63 0.25

Jharkhand - Funds under plan scheme for technology up-

gradation/modernisation/establishment of food processing

industries in 2015-16 (up to December 2015)

Number of units Amount (US$ thousand)

3 1.02

Source: Ministry of Food Processing Industries, Government of India

As of March 2014, the state had 55 cold storages with a

combined storage capacity of 217,280 metric tonnes.

4949JANUARY 2017

Swastik Group

We Group Mushroom


• Swastik Fruits Products Limited and Swastik Aqua Limited, two companies under Swastik

Group, produce mango juice (sold under ‘Frooti’ brand) and apple juice (sold under ‘Appy Fizz’

brand) for Parle Agro, which is one of the major processed food companies in India.

• The company has two state of the art units at Ranchi in Jharkhand.

• Established in 2001, We Group is a food processing unit in the small scale sector. It produces

and distributes fresh mushrooms, mushroom seeds and pickles.

• We Group has a plant in Dhanbad.


KEY INDUSTRIES – AGRO-BASED … (2/2)

We Group

Mushroom


Jharkhand has a large sericulture base. The state is the largest

producer of tussar silk (a non-mulberry silk) in the country, with

76.4% share in the total output. In 2015-16, production of raw silk

stood at 2,284 metric tonnes. During 2015-16, the state contributed

40% towards the total production of tussar silk across the country.

Moreover, Jharkhand accounts for seven% share in India’s silk

production. The state primarily exports tussar silk to the US, the UK,

Germany, France, Turkey, Japan, Australia, Sweden and

Switzerland.

State-run Jharkhand Silk, Textile and Handloom Corporation Limited

(JHARCRAFT) is responsible for the promotion of handicrafts and

silk in the state. JHARCRAFT has established silk parks in the

Ranchi, Saraikela-Kharsawan, Giridih and Deoghar districts.

KEY INDUSTRIES – SILK AND HANDICRAFT


Source: Ministry of Textiles

MSME: Micro, Small and Medium Enterprises

Catalytic Development Programme (CDP)

funds sanctioned/utilised to promote

sericulture

(US$ million)

2013-14 2014-15

Funds

sanctioned/utilisedAllocation Released

5.06 2.82 2.82

Raw silk production in Jharkhand (metric tonnes)

Funds released under Handicraft Schemes (2015-16 (up to

November 2015) – US$ ‘000

Ambedkar Hastshilp Vikas Yojna (AHVY) 29.95

Human Resource Development (HRD) Scheme 13.91

Total 43.87

1,090

2,003 1,9462,284

2012-13 2013-14 2014-15 2015-16


SINGLE-WINDOW CLEARANCE MECHANISM


Source: Government of Jharkhand website,

www.jharkhandindustry.gov.in

The Government of Jharkhand has implemented a Single-

Window Clearance System (SWS) for faster and one-point

clearance of industrial projects, single-point dissemination

of industrial project-related information and streamlining of

inspection of industries by different agencies/authorities.

At the state level, a committee has been formed under the

chairmanship of the Chief Secretary, with secretaries from

all departments concerned and representatives from banks

and financial institutions as members, to facilitate speedy

clearances for mega projects (investment above US$ 8.29

million).

A similar committee has been constituted at the district level

under the chairmanship of the Director of Industries to

review the progress of all investment proposals received.

Officers from various departments (industries, land and

revenue, commercial tax, labour and employment, forest

and environment, Jharkhand State Electricity Board,

Jharkhand State Pollution Control Board and Damodar

Valley Corporation) have been deputed to the SWS office to

facilitate its smooth functioning.

State-level Single Window

Clearance and Monitoring

Authority

Chief Secretary of

Jharkhand

Director of

Industries

District-level Single

Window Clearance

Agency

5252JANUARY 2017

Agency Description

Department of

Industries

• The objective of this department is to accelerate economic development by facilitating investments

in industries and infrastructure, developing required human resources for industrial employment,

and supporting small and rural industries, artisans and craftsmen.

Department of

Energy

• The department formulates plans, policies, acts and rules, and undertakes developmental

activities.

• It is responsible for the expansion of generation, transmission and use of electricity.

• The department has different corporations, authorities and undertakings such as Jharkhand State

Electricity Board (JSEB), Tenughat Vidyut Nigam Limited, Jharkhand Renewable Energy

Development Authority and the Electricity Licensing Board, under its supervision.

Adityapur Industrial

Area Development

Authority (AIADA)

• The Adityapur Industrial Area is situated in the district of Seraikela Kharsawan, near Jamshedpur.

• AIADA controls an area of about 53 sq miles.

• It has so far developed 1,365 plots and 142 industrial sheds.

• There are 1,102 operating units in the AIADA-controlled area, which provide employment to about

27,900 persons.

• AIADA provides land, water, electricity and technical expertise to assist in the setting up of units in

the industrial area.



KEY INVESTMENT PROMOTION OFFICES … (1/2)

5353JANUARY 2017

Agency Description

Bokaro Industrial

Area Development

Authority (BIADA)

• BIADA is located in Bokaro Steel City, which has several small-scale industrial (SSI) units.

• BIADA provides most of the industrial supplies for SAIL’s Bokaro steel plant, which is the catalyst

for the industrial units in BIADA.

Ranchi Industrial

Area Development

Authority (RIADA)

• RIADA controls industrial areas spread over the nine districts of Ranchi, Hazaribagh, Koderma,

Palamu, Garhwa, Lohardagga, Khunti, Ramgarh and Gumla.

• A total of 20 industrial estates have been developed by RIADA.

• RIADA provides land, water, electricity and technical expertise to assist in setting up industries.

Jharkhand State

Electricity Board

(JSEB)

• After the formation of Jharkhand in 2000, JSEB was formed as a separate entity from the Bihar

State Electricity Board (BSEB).

• Apart from generating electricity, JSEB is involved in transmission and distribution throughout the

state.



KEY INVESTMENT PROMOTION OFFICES … (2/2)

5454JANUARY 2017

Agency Contact information

Department of Industries,

Government of Jharkhand

Nepal House, Doranda

Ranchi - 834001, Jharkhand

Phone: 91-651-2491 844

Fax: 91-651-2491 884

E-mail: [email protected]

Website: http://jharkhandindustry.gov.in

Adityapur Industrial Area

Development Authority (AIADA)

Vikas Bhawan

Adityapur,

Jamshedpur – 831013, Jharkhand

Phone: 91-657-2371 646/460

E-mail: [email protected]

Website: www.aiada.in

Ranchi Industrial Area

Development Authority (RIADA)

RIADA Building, 5th Floor,

Namkun Industrial Area, Ranchi

Website: www.riada.in



CONTACT LIST

5555JANUARY 2017

Approvals and clearances required Department

Allotment of land/acquisition of land/change of land useDepartment of Industries, Government of Jharkhand, and District

Collector

Approval of building plan Industrial Area Development Authority and Local Bodies

Release of power connection and consent for setting

up captive power plantJharkhand State Electricity Board (JSEB)

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

Registration as a factory Chief Inspector of Factories

Sales tax registration Revenue Department, Government of Jharkhand

Registration under Trade Union Act Labour Department, Government of Jharkhand

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

Registration under Industrial Disputes Act Labour Department, Government of Jharkhand

Registration under Minimum Wages Act/Employee

State Insurance ActLabour Department, Government of Jharkhand



KEY APPROVALS REQUIRED

5656JANUARY 2017

Procedure Time to completeAssociated costs

(US$)

Obtain director identification number (DIN) online from the Ministry of

Corporate Affairs portal (National) 1 day 1.65

Obtain digital signature certificate online from private agency authorized by the

Ministry of Corporate Affairs (National) 3 days 24.88

Reserve the company name online with the Registrar of Companies (ROC)

(National) 5 days 8.29

Stamp the company documents at the State Treasury (State) 1 day 2.98

Get the Certificate of Incorporation from the Registrar of Companies, Ministry

of Corporate Affairs (National) 6 days 219.80

Make a seal (Private) 1 day 5.80



COST OF STARTING A BUSINESS IN JHARKHAND…(1/2)

Source : www.doingbusiness.org

5757JANUARY 2017

Procedure Time to CompleteAssociated costs

(US$)

Obtain a Permanent Account Number (PAN) from an authorized franchise or

agent appointed by the National Securities Depository Ltd. (NSDL) or the Unit

Trust of India (UTI) Investors Services Ltd., as outsourced by the Income Tax

Department (National)

15 days 1.11

Obtain a Tax Account Number (TAN) for income taxes deducted at the source

from an authorized franchise or agent appointed by the National Securities

Depository Ltd. (NSDL), as outsourced by the Income Tax Department

(National)

14 days 0.94

Register with the Office of Inspector, Shops, and Establishment Act (State/

Municipal) 7 days 82.94

Register for Value-Added Tax (VAT) at the Commercial Tax Office (State) 20 days 8.29

Register with Employees' Provident Fund Organization (National) 20 days No cost

Register for medical insurance at the regional office of the Employees State

Insurance Corporation (National)14 days No cost



COST OF STARTING A BUSINESS IN JHARKHAND…(2/2)

Source : www.doingbusiness.org

5858JANUARY 2017

Cost parameter Cost estimate Source

Land (per sq. ft.)1 US$ 15 to US$ 30 Industry sources

Labour cost (minimum wages per

day)US$ 3.48 to US$ 4.81

Ministry of Labour and Employment,

Government of India

Hotel costs (per room per night) US$ 75 to US$ 150 Leading hotels in the state

Residential rent (2,000 sq ft per

month)US$ 175 to US$ 400 Industry sources

Power cost (per kWh)Commercial: US 8.2 cents

Industrial: US 7.3-9.1 cents

Jharkhand State Electricity Regulatory

Commission

Water (per 1,000 gallons) US 19 cents Industry sources



COST OF DOING BUSINESS IN JHARKHAND

1Ranchi and Jamshedpur

As per the World Bank and Department of Industrial Policy and Promotion (DIPP) report - Assessment of State

Implementation of Business Reforms 2016, the state ranked 7th in the Ease of Doing Business Index.

5959JANUARY 2017

Jharkhand Industrial Park Policy 2015

• To attract investments into the industrial sector of Jharkhand.

• To improve manufacturing sector of Jharkhand and set up processing industries for engineering goods

and services.

• To create a link between the MSME industries and large scale industries.

Objectives



STATE ACTS & POLICIES … (1/3)

Jharkhand Food Processing Industry Policy 2015

• To boost the output from food processing industries and improve the earnings of

farmers in the state.

• To provide financial assistance for the upgradation of technology at the existing food

processing units as well as for setting up of new units in Jharkhand.

Objectives

Read more

Read more

Jharkhand Industrial And Investment Promotion Policy 2016 (draft stage)

• To foster manufacturing and innovation, create employment opportunities and state-of-the-art

infrastructure and enhance inclusivity through various sectors of the state.

• To provide a link between the MSME and large industries of the state.

• To establish industrial parks in joint venture, private as well as PPP mode under the Industrial Park

Policy 2015 of Jharkhand.

Objectives

Read more

6060JANUARY 2017

Jharkhand Tourism Policy 2015

• The aim of tourism policy is to make Jharkhand the most preferred tourist destination both inside

and outside India

• To develop tourism infrastructure

• To increase employment opportunities

• To showcase the state’s cultural heritage and traditions

Objectives




Jharkhand Export Policy 2015

• To improve the infrastructure for storage facilities and rail-road connectivity.

• To provide technological upgradation for the export sectors of minerals, handlooms, handicrafts

and agricultural products.

Objectives

Read more

Read more

Jharkhand Feed Processing Industry Policy 2015

• To support animal, fish, cattle and poultry feed industry in Jharkhand.

• To provide financial assistance for the upgradation of technology at the existing animal feed

processing units as well as for setting up of new units in Jharkhand.

Objectives

Read more

6161JANUARY 2017

Jharkhand Procurement Policy 2014

• To give preference to purchase of products and services from Micro and Small Enterprises (MSEs)

of the state

• To encourage competitiveness among local MSEs and other industrial units

• To facilitate purchase from state MSEs

• All the administrative departments and agencies under the State Government, Boards,

Corporations, trusts, Development Authorities, Municipalities, Committees and Co-operative

Bodies and Institutions which are aided by the State Government along with companies where

share of Government is 50% or more – will purchase 20% of total yearly products and services

purchase from MSEs of Jharkhand in 3 years

• To ensure procurement of maximum number of goods and services from state enterprises without

compromising on quality, cost and competitiveness

Objectives




Read more

Jharkhand State Solar Power Policy 2015

• To boost private sector participation to set up solar power projects in Jharkhand and increase solar

power generation to 2,500 MW by 2020

• To set up a promising atmosphere for solar power projects.

• Energy security in stable and non-polluting ways

Objectives

Read more

6262JANUARY 2017

Year INR equivalent of one US$

2004-05 44.81

2005-06 44.14

2006-07 45.14

2007-08 40.27

2008-09 46.14

2009-10 47.42

2010-11 45.62

2011-12 48.13

2012-13 54.31

2013-14 60.28

2014-15 60.28

2015-16 65.46

2016-17E 67.23

Average exchange rates



ANNEXURE

Source: Reserve Bank of India

6363JANUARY 2017

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DISCLAIMER

jharkhand state report - january 2017

Economy & Finance