puducherry - ibef
TRANSCRIPT
For updated information, please visit www.ibef.orgDecember 2020
PUDUCHERRY
2
Executive Summary 3
Introduction 4
Economic Snapshot 8
Physical Infrastructure 11
Social Infrastructure 18
Industrial Infrastructure 21
Key Sectors 24
Key Procedures & Policies 28
Appendix 34
Table of Contents
3
Executive summary
1
2
3
4
Agriculture - Primary occupation• Agriculture is one of the most important occupations for the people of Pondicherry. About 45% of the total
population of Puducherry depends directly or indirectly on farming.• The sector contributes less than 2% of the GSDP of the Government of Puducherry.
• Puducherry is one of the fastest-growing union territories in the country. At current prices, Puducherry’s gross statedomestic product (GSDP) was about Rs. 408.02 billion (US$ 5.79 billion) in 2018-19
• Puducherry’s total NSDP was about Rs. 371.34 billion (US$ 5.27 billion) in 2019-20
Strong economic growth
Tourist paradise• It has well developed infrastructure with an excellent road and rail network, and two airports (domestic and
international) in the city providing excellent connectivity.
• New port is expected to start with 3.5 lakh tons of cargo per annum comprising container cargo and general cargo• Karaikal Port Private Limited (KKPL) is expected to increase cargo handling to over 125 MMT by 2025.
Port's performance
Source: Government Reports, News Article
4
INTRODUCTION
5
Puducherry fact file
Source: Census 2011, Government of Puducherry Website
• Puducherry, a union territory (UT) of India, is bounded on the East by the Bay of Bengal and on the three sides by Tamil Nadu.• The UT comprises Puducherry, Karaikal, Mahe and Yanam, wherein Karaikal lies about 130 km south of Puducherry on the East Coast, Mahe is
situated on the Malabar Coast on the Western Ghats surrounded by Kerala. Yanam is situated adjoining the East Godavari district of Andhra Pradesh.
• The main languages spoken here are Tamil, Telugu, Malayalam, English and French.• The weather is hot and humid from March through July and cool from December to February.
Key Insights
2547 persons per sq kmPopulation density
635,442female population
Puducherry
490 sq.km.geographical area
85.85%literacy rate
1,247,953total population
612,511male population
1,037Sex ratio
(females per 1,000 males)
6
Advantage Puducherry
High literacy rate
• According census 2011, Puducherry hadan average literacy rate of 85.85%. A largeproportion of the population can speakEnglish, which helps boost the unionterritory’s tourism sector
Facilitating Infrastructure
• Puducherry has a well-developed industrial infrastructurewith nine industrial estates
• It has an airport and two ports.
Strong presence in agriculture and tourism
• The agriculture sectorcontributes ~2% of the GrossState Domestic Product(GSDP) of the Governmentof Puducherry.
• High inflow of tourists drivingtourism revenue.
High economic growth and stable political environment• GSDP (in Rs.) grew at a Compounded
Annual Growth Rate (CAGR) of 11.27%between 2015-16 and 2019-20.
• The state government is committed towardscreating a progressive businessenvironment.
7
Puducherry in figures
Puducherry’s Contribution to Indian Economy (2019-20)
Social Indicators
Physical Infrastructure in Puducherry
Investments (as of September 2020)
GSDP as a percentage of all states’ GSDPIndia: 100.0 | Puducherry: 0.19
GSDP growth rate* (%)India: 11.50 | Puducherry : 11.27
Literacy rate (%)India: 77.7 | Puducherry : 85.85
Installed power capacity (MW) (as of November 2020)India: 3,74,199 | Puducherry : 376.54
Wireless subscribers (million) (as of June 2020)India: 1,140.71 | Puducherry : 1.13
Cumulative FDI inflows from October 2019 to September 2020 (US$ million)
India: 53.884.85 | Puducherry : 0.82
GSDP
Birth rate (per 1,000 population) (2018)India: 20.0| Puducherry : 13.7
Airport (No.)India: 153 | Puducherry : 1
Note: For source refer to Annexure, *- until October 2020
392.79 366.31232.19
0.00
200.00
400.00
600.00
2018-19 2019-20 2020-21*
Puducherry Export (US$ million)
Total merchandise exports from Puducherry stood at US$ 366.31million in 2019-20
8
ECONOMIC SNAPSHOT
9
Economic snapshot - GSDP
Source: Ministry of Statistics and Programme Implementation
Puducherry’s per capita Gross State Domestic Product (GSDP) in2019-20 was estimated at about Rs. 260,713.97 (US$ 3,698.60).
Per capita GSDP of the state increased at a CAGR of 8.35%between 2015-16 and 2019-20.
GSDP at Current Prices
4.07 4.
41
5.11 5.24 5.
79
266.
17
295.
73 329.
62 366.
56 408.
020
50
100
150
200
250
300
350
400
450
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
US$ billion Rs billion
CAGR (In Rs.) 11.27%
At current prices, Puducherry’s gross state domestic product (GSDP)was about Rs. 408.02 billion (US$ 5.79 billion) in 2018-19.
The GSDP increased at a CAGR of 11.27% between 2015-16 and2018-19.
GSDP per capita at current prices
2,88
9.89
3,05
0.46
3,44
6.34
3,44
1.52
3,69
8.60
189,
172.
27
204,
655.
12
222,
116.
66
240,
527.
77
260,
713.
97
0
50000
100000
150000
200000
250000
300000
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
US$ Rs.
CAGR 8.35%
Note: GSDP, per capita GSDP figures are taken at current prices, Exchange Rate as per slide 46
10
Economic snapshot - NSDP
Source: Ministry of Statistics and Programme Implementation
Puducherry’s per capita NSDP was Rs. 237,278.95 (US$ 3,366.14)in 2019-20.
Per capita NSDP of Puducherry increased at CAGR of 8.26%between 2015-16 and 2019-20.
Visakhapatnam port traffic (million tonnes)NSDP per capita at current prices NSDP at Current Prices
Puducherry’s total NSDP was about Rs. 371.34 billion (US$ 5.27billion) in 2019-20.
The state’s NSDP (in Rs.) increased at a CAGR of 11.18% between2015-16 and 2019-20.
3.71 4.
04
4.69 4.81 5.
27
243.
03
270.
73 302.
12 335.
98 371.
340
50
100
150
200
250
300
350
400
0.00
1.00
2.00
3.00
4.00
5.00
6.00
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
US$ Rs. billion
CAGR 11.18%
2,63
8.66
2,79
2.61
3,15
8.77
3,15
4.39
3,36
6.14
172,
726.
75
187,
356.
50
203,
583.
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220,
460.
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0
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200000
250000
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
US$ Rs.
CAGR 8.26%
Note: NSDP, per capita NSDP figures are taken at current prices, Exchange Rate as per slide 46
11
PHYSICAL INFRASTRUCTURE
12
Physical infrastructure - Roads
Puducherry is situated about 170 km south of Chennai on the EastCoast Road and National Highway NH-45A, connecting Chennai andother major cities.
The length of the road in Puducherry is 2,398 km (road length per4.87 sq. km.) and is the highest in the country.
Road TypeRoad Length (km)
Puducherry
National highways (as of 2020) 190 (43 kms in Puducherry)
Total length of the road (km) 2,398
Source: Pondicherry Industrial Promotion Development And Investment Corporation Limited, India Investment Grid Website
Upcoming Road Projects Cost of the Project (US$ million)
Poondiankuppam - SattanathapuramNH-45A Road Development Project 241.44
Puducherry -Poondiyankuppam NH-332 Road Development Project 211.06
13
Physical infrastructure - Ports
There are two ports in the union territory of Puducherry - PuducherryPort and Karaikal Port.
Approved in 2019 by the Ministry of Shipping, Puducherry Port isexpected to start with 3.5 lakh tons of cargo per annum comprisingcontainer cargo and general cargo
Commissioned in 2009, Karaikal Port Private Limited (KKPL) isdeveloped across 600 acres. It is a build, operate and transfer formatunder Public-Private Partnership. KKPL is expected to increasecargo handling to over 125 MMT by 2025.
In October 2020, Adani Ports and Special Economic Zone Ltd.,Brookfield Asset Management and Shapoorji Pallonji Group filed anexpression of interest to buy 49.05% stake, which will be held by thefour firms, in Karaikal Port Pvt. Ltd.
Source: Port Department Puducherry, Karaikal Port website
Port Centre Cargo Type
Puducherry Containers, Cars, General Cargo, Edible Oil and Commuters
Karaikal
Coal, Sugar, Cement, Fertilisers, Project Cargo, Agro
Commodities, Liquid Cargo and Containers
14
Physical infrastructure - Airport
Source: News Articles, Know India Aviation Database
Puducherry Passenger Traffic
A domestic airport is located in Puducherry with flights to and from Bengaluru, Hyderabad and Vijayawada.
The airport handled 68,195 passengers in FY20.
In November 2019, the Government of Puducherry proposed an international airport under public-private partnership mode at Karasur.
86,746
68,195
010,00020,00030,00040,00050,00060,00070,00080,00090,000
100,000
FY19
FY20
15
The Electricity Department under the Government of Puducherry is in charge of electricity maintenance in the union territory.
Of the total installed capacity in FY20, 376.20 MW is managed by central utilities. Thermal power plants accounted for a significant share in thetotal installed capacity with 283 MW, whereas nuclear and renewable energy accounted for 86 MW and 7.2 MW, respectively.
The industrial sector is the largest consumer of electricity, followed by the domestic sector.
Installed Power Capacity (MW)
Source: Central Electricity Authority, Union Budget 2020
334.
63
366.
98
368.
63
370.
04
376.
20
376.
54
310.00
320.00
330.00
340.00
350.00
360.00
370.00
380.00
FY16 FY17 FY18 FY19 FY20 FY21*
75.2%
22.9%
1.9%
Thermal
Nuclear
Renewable
Classification of Installed Power Capacity in FY20
Note: MW- megawatt, Till November 2020
Physical infrastructure - Power
16
Physical infrastructure - Telecom
As of June 2020, Puducherry had 1.17 million telephone subscribers.
By June 2020, there were 1.13 million wireless subscribers, withtele-density at 75.82%
Source: India Investment Grid Website, TRAI
Some of the key telecom service providers:
Bharat Sanchar Nigam Limited (BSNL)
Bharti Airtel
Reliance Jio
Vodafone Idea Ltd.
Note: 1(NA) - Not Available
Upcoming Telecommunication Projects Presence Cost of the Project
(US$ million)
4G Services by BSNL Across Nation 3,890
Network for Spectrum Across Nation 2,020
Airtel Project Across Nation NA1
BharatNet Project Across Nation 2,130
17
Physical infrastructure - Urban development
As per the Union Budget 2020-21, the Ministry of Home Affairs providedRs. 1 lakh (US$ 1,362.69) for water and sanitisation in the state.
The budget also accounted for Rs. 5 crore (US$ 0.68 million) forDisaster Response Fund and Rs. 0.01 crore (US$ 1,362.69) for CoastalDisaster Risk Reduction Project.
In 2019, Puducherry was declared as an open defecation-free state
Source: Union Budget 2020, India Investment Grid Website
Upcoming Water Treatment Projects Presence Cost of the Project
(US$ million)JJM Rural Implementation Project Across Nation 49.18
Jal Jeevan Mission Implementation Project Across Nation 38.18
Ground Sewerage System Development Project Puducherry 7.17
Improvement of Primary Store Water Project Puducherry 7.17
18
SOCIAL INFRASTRUCTURE
19
Social infrastructure - Education
Source: MHRD report on ‘education statistics at a glace, News Articles
In August 2020, the Union Education Ministry released Rs. 206.94 crore (US$ 28.07 million) to the Pondicherry University to develop itsinfrastructure.
In 2017, NITI Aayog rolled out a scheme titled ‘Sustainable Action for Transforming Human Capital in Education’ (SATHE-E) to streamline the pre-college education before 2020 in the union territory.
Puducherry educational statistics
Primary Institutes 278
Upper Primary Institutes 87
Secondary Institutes 202
Standalone Institutions 57
Puducherry educational statistics
Higher Education Institutions 145
Senior Secondary 164
Colleges 84
Universities 4
20
Social infrastructure – Health
As per the Ministry of Health and Family Welfare Budget 2020-21, the government allocated Rs. 65,011.80 crore (US$ 885.91 million) to Puducherryin the form of various schemes to the health services sector.
In July 2018, the union territory government proposed to establish an exclusive spinal injury treatment centre at the Indira Gandhi GovernmentGeneral Hospital and Post Graduate Institute in Puducherry.
Source: Ministry of Health and family Welfare Budget 2019-20, Hospaccx Healthcare Business Consultancy UT overview, NITI Government report, Press Information Bureau Report Note: 1Per thousand persons, 2Per thousand live births
Health indicators (2016-18)
Puducherry
Birth rate 13.7
Death rate 6.9
Natural growth rate 6.8
Infant mortality rate 11
Birth rate 13.7
Healthcare infrastructure
Puducherry
Public facilities 53
Beds available in publicfacilities
4,462
Rural hospitals 3
Urban hospitals 11
21
INDUSTRIAL INFRASTRUCTURE
22
Industrial infrastructure
The Industrial Policy 2016 is expected to make Puducherry apreferred industrial investment destination and envisages strong andspecific initiatives to ensure timely and hassle-free guidance andclearances to new entrepreneurs.
After an application of the industrial policy was released in 2016, thegovernment cleared 27 industrial projects with an investment of Rs.177.5 crore (US$ 24.1 million)
The uniion territory is expected to attract an investment of US$ 5billion and add 50,000 jobs
Source: Industrial Policy Brochure - 2016, Invest India website, News Articles
Industries in Puducherry
Cotton textile Soda water Chemicals
Jute & jute products Agriculture Rubber, plastic & petroleum
Wood/wood-based furniture
Readymade garments & embroidery
Minerals
Paper & paper products Leather
Electrical machinery and transportequipment
23
Industrial estates
There are nine industrial estates in Puducherry with 8,708 registeredunits.
As of 2014-15, there are 8,699 small-scale industries, 190 medium-scale industries and 77 large-scale industries. There are also 2 sugarfactories and 8 textile mills in Puducherry.
Some of the key industries in Puducherry include chemicals, textiles,leather, electronics, light engineering, metals, tourism and foodprocessing.
Industrial estates in Puducherry
Industrial Estates Size of the Plot (acre) No. of Units
Mettupalayam Industrial Estate 167 351
Sedarapet Industrial Estate 62 87
Kirumambakkam Industrial Estate 25 22
Thirubuvanai Industrial Estate 52 71
I.T. Park, Pillaichavady 18 11
Industrial Growth Centre 597 16
Thattanchavady 51 91
Manapet 15.58 NA1
Kottucherry 7.66 NA1
Source: Industrial Policy Brochure - 2016, DCMSME reportNote: 1(NA) - Not Available
24
KEY SECTORS
25
Key sectors - Agriculture
Agriculture is one of the most important occupations for the people ofPondicherry. About 45% of the total population of Puducherrydepends directly or indirectly on farming.
The agriculture sector contributes less than 2% of the Gross StateDomestic Product (GSDP) of the Government of Puducherry.
The main crop of this territory is paddy.
Puducherry is one of the largest producers of bananas, flowers,tapioca, coconut, groundnut and sugarcane.
Pandit Jawaharlal Nehru College of Agriculture and ResearchInstitute, an agricultural college, has presence in the union territory ofPuducherry.
In November 2020, the National Bank for Agriculture and RuralDevelopment (NABARD) unveiled the ‘Potential Linked Credit Plan’(PLP) for Puducherry worth Rs. 3,457.14 crore (US$ 467.74 million)for 2021-22.
Source: Department of Agriculture and Farmers Welfare, Puducherry Vision 2025
Type of Agricultural Crops and Fruits
Rice Maize Jowar
Bajra Ragi Cotton
Coconut Sugarcane Oilseeds
Gingelly Chillies Bananas
Flowers Tapioca Groundnut
Pulses (Bengalgram, Redgram, Greengram, Blackgram and Horsegram)
Targets for Vision 2025 - Targets for Agriculture, Fisheries and Rural Development
Parameter Current Vision 2025
GSDP of Primary Sector(Rs. crore)
220 (US$ 29.9 million)
303 (US$ 41.2 million)
Area Under Cultivation 34,682 hectares
Target 29,000 hectares
instead of a drop to25,000 hectares
No. of Food Parks (agrifood and fish processing)
0 5
No. of Diary Unions 2 4
26
Key sectors - Tourism and hospitality
Puducherry is an attractive tourist destination with its beaches,French architecture, churches and Hindu temples
While domestically, tourist arrival was observed from Bengaluru,Hyderabad, Kerala, Chennai, Odisha and West Bengal, foreigntravellers were mostly from European countries, especially France.
In 2019, Puducherry witnessed the arrivals of 1,713,248 domestictourists and 149,919 foreign tourists.
The total occupancy capacity in Puducherry stands at 5,000 roomsas of 2018
Source: Ministry of Tourism, News Articles
Tourist Arrivals in Puducherry (million)
1.40
1.531.62
1.71
0.12
0.130.14
0.15
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2016 2017 2018 2019
Domestic Foreign
27
Key sectors - Marine products
The coastline is about 45 kms, with 26 landing centers and 1,000 sq.km. of continental shelves (with potential for marine fisheries).
It has a fishermen population of about 95,467, of which 29,383fishermen are actively engaged in fishing from 27 marine fishingvillages and 23 inland fishing villages/hamlets.
The union territory is also endowed with freshwater area in the formof ponds and tanks suitable for both capture and culture fishery.
Source: The Marine Products Exports Development Authority (MPEDA)
Fishing Craft # of crafts
Traditional crafts (non-motorised) 662
Motorised crafts 1,562
Mechanised boats 369
28
KEY PROCEDURES AND POLICIES
29
Key investment promotion offices
Agency Description
Ministry of Road Transport & Highways
An apex body under the central government is primarily responsible for planning, development and maintenance of National Highways in the country
Science, Technology and Environment Department
The department is responsible for creating scientific awareness among the general public and students, extending support in carrying out research projects/studies, and conversing and protecting the environment of the union territory
Labour Department The department is responsible for providing and promoting the health, safety and social security for workers
by implementing an array of labour legislations (central and state)
Information Technology The department is responsible for providing assistance in all IT activities to Government Departments,
ensuring increased transparency, efficiency and accountability in Government operations through e-Governance and controlling Puducherry e-Governance Society
Electricity Department The department is deemed responsible for transmission, distribution and retail supply of electricity in the
union territory
Animal Husbandry and Animal Welfare Department
The department focusses on safeguarding the health of domestic animals and sustaining and improving the productivity of farm animals.
Local Administration All Municipalities and Commune Panchayats in Puducherry function under the Local Administration
Department.
Source: Government of Puducherry website
30
Contact list
Source: Government of Puducherry website
Agency Contact information
Local Administration
Local Administration
No:16, Rue Suffren, Near, Bussy St., Puducherry, 605001
Phone: 91-4132224721
Website: https://lad.py.gov.in
31
Key approvals required
Approvals and clearances required Departments to be consulted
Incorporation of Company Registrar of Companies
Industrial Entrepreneurs' Memorandum Department for Promotion of Industry and Internal Trade
Allotment of Land Pondicherry Industrial Promotion Development and Investment Corporation Limited
Permission for Land Use Puducherry Planning Authority
No Objection Certificate and Consent under Water and Pollution Control Acts Puducherry Pollution Control Committee
Sanction of Power Electricity Department, Government of Puducherry
Registration under the State Sales Tax Act and Central and Excise Act Commercial Taxes Department
Source: Government of Puducherry website
32
Cost of doing business in Puducherry
Cost parameter Cost estimate
Industrial land (per sq. ft.) More than US$ 25
Office space rent
(per sq. ft. per month)More than US$ 27 cents
Hotel costs (per room, per night) US$ 20-200
Power (per kWh)
101-200 units - Rs. 2.55 (US$ 0.035)
201-300 units - Rs. 4.50 (US$ 0.061)
Above 300 units - Rs. 5.90 (US$ 0.080)
Source: Industry source
33
State acts & policies
Source: Government of Puducherry Policies
IT Policy 2017The new policy seeks to be recognised as one of the leading union territories in the country on the e-Readiness Index and also adopt several new strategies such as "Make in India", "Startup India", "Standup India“ and "Ease of Doing Business“.
1
Industrial Policy 2016The policy aims to promote vibrant industrial growth for the overall economic development of the state.2
Draft Water PolicyThe policy has detailed information on the water resource planning, water allocation priorities, irrigation, drinking water management, ground water development, etc. 3
34
APPENDIX
35
Sources
Data Sources
Installed power capacity (MW) Central Electricity Authority
Wireless subscribers (no.) Telecom Regulatory Authority of India
Internet subscribers (million) Telecom Regulatory Authority of India
National highway length (kms) Ministry of Road Transport and Highways
Number of ports India Ports Association
Airports (no.) Airports Authority of India
Literacy rate (%) Census 2011
Birth rate (per 1,000 population) SRS Bulletin, September 2017
36
Exchange rates
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year Rs. Rs. Equivalent of one US$
2004-05 44.95
2005-06 44.28
2006-07 45.29
2007-08 40.24
2008-09 45.91
2009-10 47.42
2010-11 45.58
2011-12 47.95
2012-13 54.45
2013-14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
2018-19 69.89
2019-20 70.49
Year Rs. Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
2018 68.36
2019 69.89
2020* 74.18
Source: Reserve Bank of India, Average for the yearNote: *As of December 2020
37
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