RAJASTHAN ROYAL HERITAGE

Transcription

1 ROYAL HERITAGE February 2018

2 Table of Content Executive Summary Vision Advantage State....5 Rajasthan An Introduction....6 Rajasthan Budget Infrastructure Status...17 Business Opportunities Doing Business in Rajasthan State Acts & Policies

3 EXECUTIVE SUMMARY Thriving tourism industry Tourist arrivals in the state, during 2017 reached 47.5 million. Historic palaces, especially those in Jaipur and Udaipur, offer opportunities to expand the luxury tourism segment, with increasing number of tourists visiting wild life sanctuaries and desert locations. Leading producer of agro-based products Rajasthan is the 2 nd largest producer of oilseeds and coarse cereals and largest producer of spices in India, as of FY17. Tremendous opportunities exist in the areas of organic and contract farming as well as in infrastructure developments related to agriculture. Focus on renewable energy The state has immense potential for electricity generation through renewable energy sources and wind power. Rajasthan Renewable Energy Corporation Ltd has actively promoted solar energy and biomass projects. Strong economic growth Rajasthan s gross state domestic product (GSDP) expanded at a CAGR of 6.05% over to E. Conducive policy environment The policy environment has been favourable for the establishment of industrial units. A Single Window Clearance System (SWCS) for investment approvals is operational in the state and the Bureau of Investment Promotion (BIP) was set up to focus on investments above US$ 2.2 million. One of the largest producers of crude oil Rajasthan is the 2nd largest* producer of crude oil in India, recording production of approximately 8.1 million tonnes of oil per annum in FY17, which is nearly 23 per cent of the total domestic crude oil production in the country. Note: 2 nd largest * After Offshore production, E- Estimate Source: Bureau of Investment Promotion, Ministry of Tourism, Rajasthan Economic Survey , Central Statistics Office 3

4 VISION 2022 Minimum education & work experience must for politicians. To provide more freedom to bureaucrats. Fair & advanced taxation system. Self-disciplined media. To promote region wide economic balance. To develop efficient economic infrastructure. To promote SMEs and develop special zones. To develop good quality roads. Proper traffic management systems. To develop & maintain special economic and technological infrastructure. To develop appropriate water policy. To develop a coherent social environment. To execute poverty elimination plans. To increase interaction within community. Infrastructure Community Governance Vision 2022 Human development Economy Poverty elimination & employment opportunities for all. Agriculture Education A comprehensive Economic Inclusion Policy to be developed. A well defined healthcare system. Utilise services & expertise of NGOs. To create network of canals. To develop five international level research labs. To address soil fertility & reduce use of fertilisers. To achieve leadership in animal husbandry & livestock businesses. Compulsory education up to 10th standard. To promote privatisation. To support higher education & research. To provide computer literacy. Source: Confederation of Indian Industry 4

5 ADVANTAGE: High economic growth and stable political environment GSDP grew at a CAGR of 6.05% between and E. With a stable political environment, the government is committed towards creating a progressive business environment. Rich labour pool and infrastructure support Rajasthan has been investing in capacity building through the development of a strong institutional network at all levels. The state has renowned higher education institutions in various disciplines, producing thousands of skilled and proficient young individuals every year. The state is developing sector specific infrastructure, such as special purpose industrial parks and special economic zones (SEZs) for exports of handicrafts, IT and electronic goods. Abundant mineral resources and location advantage Rajasthan offers a variety of unexploited agricultural and mineral resources, which is indicative of the scope for value addition and exports. It borders six major states in the northern, western and central parts of India. Rajasthan is a natural corridor between the wealthy northern and the prosperous western states, making it an important trade and commerce centre. Advantage Rajasthan Policy and incentives The state offers a wide range of fiscal and policy incentives for businesses. The Government has introduced sector-specific policies for tourism, biotechnology, IT and ITeS industries. Rajasthan has a favourable industrial relations environment. In addition, the law & order situation in the state ensures a good working environment. Note: E - Estimate Source: GSDP: Gross State Domestic Product 5

6 FACT FILE Parameters Capital Rajasthan Jaipur Geographical area (lakh sq. km) 342,239 Administrative districts (No) 33 Population density (persons per sq. km) 200 Total population (million) 68.6 Male population (million) 35.6 Source: Maps of India Rajasthan is the largest state, by area, in India, is situated in the north-western part of the subcontinent. It is surrounded on the north and north-east by Punjab, Haryana and Uttar Pradesh; on the east and south-east by Uttar Pradesh and Madhya Pradesh and on the south-west by Gujarat. Female population (million) 33.0 Sex ratio (females per 1,000 males) 928 Literacy rate (%) 66.1 Jaisalmer, Udaipur, Jodhpur, Ajmer, Bikaner, Alwar, Amber and Chittorgarh are some of the key cities and towns in the state. The most commonly spoken language of the state is Hindi. Marwari, Jaipuri (Dhundhari), Mewari and Malvi are the other dialects popular in the state. English is the medium of education in most schools. Source: Economic Review of Rajasthan , Census

7 IN FIGURES (1/2) Parameter Rajasthan All states Source Economy GSDP as a percentage of all states GSDP GSDP growth rate (%) Per capita GSDP (US$) 1,723 1,952 Advanced Estimates provided by Directorate of Economics and Statistics Rajasthan Advanced Estimates provided by Directorate of Economics and Statistics Rajasthan Advanced Estimates provided by Directorate of Economics and Statistics Rajasthan Physical Infrastructure Installed power capacity (MW) 20, , Central Electricity Authority, as of January 2018 Wireless subscribers (No) 65,808,382 1,167,435,645 Internet subscribers (No) 21,680, ,240,000 National highway length (km) 7, ,435 Telecom Regulatory Authority of India, as of December 2017 Telecom Regulatory Authority of India, as of September 2017 NHAI, Roads and Building Department-Government of India Airports (No) Airports Authority of India-July

8 IN FIGURES (2/2) Parameter Rajasthan All states Source Social Indicators Literacy rate (%) Census, 2011 Birth rate (per 1,000 population) SRS Bulletin Investment FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, April 2000 to December 2017 Industrial Infrastructure PPP projects Completed & Operational (No) 138 1,531 Operational SEZs (No) DEA, Ministry of Finance, Government of India, February 2018 Ministry of Commerce & Industry, Department of Commerce, December 2017 Source: PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System 8

9 E * , ,723 ECONOMIC SNAPSHOT GSDP Rajasthan s GSDP at current prices (in US$ billion) GSDP per capita of Rajasthan at current prices (in US$) 140 CAGR 6.05% 2,000 CAGR 4.61% 120 1,800 1, , ,200 1, At current prices, Rajasthan s GSDP* stood at US$ billion in , in comparison with US$ billion in Between and , GSDP of Rajasthan grew at a CAGR of 6.05%. In , Rajasthan s per capita GSDP^ at current prices was US$ 1,723 as compared to US$ 1,257 in Per capita GSDP is estimated to have increased at a CAGR of 4.61% between and Source: Central Statistics Office, GSDP* - Rajasthan Economic Review , Per Capita GSDP^ - calculated using GSDP million US$/Population in million 9

10 E * , ECONOMIC SNAPSHOT NSDP Rajasthan s NSDP at current prices (in US$ billion) NSDP per capita of Rajasthan at current prices (in US$) 140 CAGR 6.15% 1,800 CAGR 4.71% 120 1, ,400 1, , At current prices, net state domestic product (NSDP # ) stood at US$ billion in , in comparison with US$ billion in Between and , NSDP registered growth at a CAGR of 6.15%. In , Rajasthan s per capita NSDP & at current prices stood at US$ 1,553 as compared to US$ 1,125 in Per capita NSDP is estimated to have expanded at a CAGR of 4.71% between and Source: Central Statistics Office, NSDP # - Rajasthan Economic Review , per capita NSDP & - calculated using NSDP million US$/Population in million 10

11 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP In , the servicesµ sector contributed 47.41% to the state s GSDP at current prices, followed by industriesµ (27.83%) and agriculture µ (24.76%). The services sector expanded at a CAGR of 14.87% between and The sector reported the fastest growth among the three sectors. At a CAGR of 8.15%, the industrial sector reported the second fastest growth during to % 90% 80% 70% GSVA composition by sector 41.92% CAGR 47.41% 14.87% 60% 50% 29.84% 27.83% 40% 30% 20% 28.24% 8.15% 24.76% 10% 0% 8.46% Agriculture Industry Services Source: Central Statistics Office, Sector-wise %share of GSDP µ - Rajasthan Economic Review

12 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION (1/3) The state has an agricultural economy with nine agro-climatic zones and various types of soil that help during the cultivation of crops. Foodgrain production in is expected to reach million tonnes. Production of cereals is expected to reach 1.91 million tonnes, while that of pulses to 3.53 million tonnes. Cotton, which is an important cash crop, is primarily grown in Ganganagar and Hanumangarh districts. Production is estimated at 1.73 million bales in As per the state budget , an estimated outlay of US$ million was made for agriculture in the state. Irrigation and flood control has been allocated US$ million. Some of the major schemes and programmes implemented by the Department of Agriculture during were: Global Rajasthan Agritech Meet (GRAM) Pradhan Mantri Fasal Bima Yojana (PMFBY) National Mission on Oilseed and Oil Palm (NMOOP) Agricultural production Crop Estimated annual production in ( 000 tonnes) Rice Wheat 10, Fruits 1, Vegetables 1, Flowers 4.02 Aromatic & medicinal Spices 1, Honey 6.06 National Mission on Agriculture Extension & Technology (NMAET) National Food Security Mission (NFSM) National Mission for Sustainable Agriculture (NMSA) Rashtriya Krishi Vikas Yojana (RKVY) Source: Ministry of Agriculture, Rajasthan Budget , State Agriculture Department 12

13 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION (2/3) As per the press release of state budget , various initiatives planned to improve agriculture and water resources are as follows: Agriculture & Allied Services: An amount of US$ million has been allocated for weather based crop insurance scheme. Provision of US$ million for Rajasthan Agriculture Competitive Project (EAP). Allocation of US$ million for Rastriya Krishi Vikas Yojana (RKVY). Provision of US$ 5.74 million for National Mission on Agriculture Extension and Technology (Agricultural Extension). Allocation of US$ million for National Food Security Mission (Pulses). For promoting investment in the agriculture sector, the Government of Rajasthan signed 38 Memorandum of Understanding (MOUs) worth US$ million. In next 8 years, US$ million will be spent for hydrological information system. Implementation of Rajasthan Water Sector Livelihood improvement project in 24 districts, at a cost of US$ million. Provision of US$ million for implementation of Rajasthan Water Sector Restructuring Project in desert areas. The government has also allocated US$ million for implementing various AIBP projects in the state during Advance estimate for agricultural production Crop Production in (million tonnes) Cereals Pulses Oil Seeds Sugar Cane.404 Cotton (lint) 1.728* Note: *In lakh bales ( each bale of 170 kg) Source: Ministry of Agriculture, Rajasthan Budget

14 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION (3/3) During , the Government of Rajasthan announced plans to provide US$ million for establishing five agricultural universities in the state. In state budget an allocation of US$ million was made for these universities. TAFE, India s second largest tractor manufacturer, is planning to invest US$ million for setting up of an advanced agriresearch centre in the state, to enhance farm productivity. In February 2018, NABARD unveiled a US$ billion credit plan for priority sector lending in , which is 23 per cent higher than the preceding year. Out of the total, US$ billion was for agriculture sector. In the last 4 years (2014 onwards) the government has spent US$ 1.49 billion on agriculture sector. Also, a world class agro tourism centre is currently under development in Mount Abu. In May 2017, the state government awarded the US$ million to the Hindustan Construction Company and HPCL Shapoorji Energy Pvt. Ltd. (HSEPL), for the construction of Pawan Gravity Dam project. The project is expected to provide irrigation benefits to 313 villages, and cater the drinking water demand of 820 villages. Allocation and release of funds (in US$ million) - National Horticulture Mission ( ) Allocation 7.9 Release 6.69 Funds Released under Mission for Integrated Development of Horticulture (MIDH) (US$ million) Source: State Budget , Ministry of Agriculture & Cooperation 14

15 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to the Department of Industrial Policy and Promotion (DIPP), FDI inflows, from April 2000 to December 2017, stood at US$ billion. The electricity and manufacturing sector accounted for majority of investments made in the state. In the Union budget 2017, the government has allocated funds for setting up two crude oil storages in Chandikhol, Odisha and Bikaner, Rajasthan FDI equity inflows, to (US$ million) Note: 1 From April to September 2017 Source: Department Of Industrial Policy & Promotion 15

16 BUDGET The total budget estimated for the year is US$ billion. Annual Budget (estimates in US$ million) Percentage of total Agriculture & other services 1, Rural development 2, Special area program Irrigation & flood control Power 4, Industry & minerals Transportation 1, Scientific services 5.51 Social and Community Services 6,817.3 Economic services General services % 13.42% 0.27% 2.90% 25.08% 1.06% 6.12% 0.03% 40.92% 1.38% 2.57% Source: Rajasthan Budget

17 PHYSICAL INFRASTRUCTURE ROADS (1/5) As of July 2017, Rajasthan had 7,906 km of national highways. The total road length in Rajasthan is around 226, km. As of , the road density of the state was km per 100 sq. km. Under various schemes, such as the Missing Link Project, Pradhan Mantri Gram Sadak Yojana (PMGSY) & Central Road Fund, new roads are being constructed to link villages across the state. Under various programmes & projects in the state such as National Bank for Agriculture & Rural Development (NABARD), Rajasthan Road Sector Modernisation Projects (RRSMP), Pradhan Mantri Gram Sadak Yojna (PMGSY), etc, a total of 4,262 km of black top roads were constructed in Rajasthan as of December The work on 2-laning of NH-148D of length km has been completed while work on 33 km length is under process. In March 2017, Sadbhav Infra secured a 6-lane Udaipur bypass road project under the NHDP phase V, in the state of Rajasthan. The bid project cost stood at around US$ million. As of December 2017, the number of registered motor vehicles in the state stood at million, witnessing an increase of 6.91% in comparison with the previous year. Source: NHAI (National Highways Authority of India, Statistics Rajasthan Government, Rajasthan Economic Survey

18 PHYSICAL INFRASTRUCTURE ROADS (2/5) Under road infrastructure, work on 13 projects of 132 KV GSS and 2 projects of 220KV GSS, to be constructed under PPP, is under process. Districts of Dholpur and Alwar are to be included under OPRC system. As per Budget , a provision of US$ million has been made by the state government for construction of rural roads under Gramin Gaurav Path and Missing Link schemes. An allocation of US$ million has also been made under phase 3 of Pradhan Mantri Gram Sadak Yojana for the construction of 3,464 km roads. In May 2017, the Asian Development Bank decided to provide an investment of US$ 500 million for improving the connectivity and transport efficiency of state highways in Rajasthan. Road type Road length (km) as of July 2017 National highways 7,906 State highways 15,437.85* Major district roads 8,462.10* Other district roads 31,431.17* Village roads 163,320.54* Total 22,853.86* Note: *As of March 2017 Source: Statistics Rajasthan Government Source: Rajasthan Economic Survey Rajasthan Budget

19 PHYSICAL INFRASTRUCTURE ROADS (3/5) New works expected to be undertaken in Budget Construction work of Grameen Gaurav Path and Missing Link will be taken up in 1,277 villages in the forthcoming year. An amount of US$ 2.38 million has been allocated for construction of Sarola bypass in Jhalawar district. Allocation of US$ million has been made for renewal and upgradation of 5,000 km of village roads under RIDF

20 PHYSICAL INFRASTRUCTURE ROADS (4/5) Road development achievements ( , Upto December 2017) In , 2,648 km of BT roads have been constructed under NABARD RIDF XVIII/XIX, Pradhan Mantri Gram Sadak Yojana (PMGSY), Rajasthan Road Sector Modernisation Project (RRSMP) and Rural Roads Under PMGSY, 626 habitations, with 250 and above population, have been connected through 2,106 km long BT roads. Under NABARD RIDF XVIII/XIX and RRSMP, 48 villages with inhabitants are now connected by BT roads. Under Gramin Gaurav Path (GGP) Phase II, construction work of 1,778 km GGP (CC road) in 1,729 PHQ s was completed with expenditure of US$ million. As of November 2017, sixteen works of 2, 4 and 6 lane have been completed at a cost of US$ 1,398.3 million. Five works of 2,4 and 6 lanes worth US$ million are under progress, as of November National Highway Authority of India (NHAI) Ten works of 2,4 and 6 lanes have been sanctioned at a cost of US$ 1, million. Construction of two Railway Under Bridges (RUBs) and strengthening, widening and renewal of km of roads in Sikar, Jaipur, Hanumangarh, Jhalawar, Ajmer, Bundi and Bhilwara districts have been sanctioned up to December, Four lane work of Jaipur-Reengus-Sikar NH-11 of Rs crore (US$ ) having length km is completed. Source: Government of Rajasthan Economic Review

21 PHYSICAL INFRASTRUCTURE ROADS (5/5) Two-lane work of State Border Fatehpur-Salasar NH-65 of Rs crore (US$ 79 million) having length of km is under progress and work of km has been completed. National Highway Authority of India (NHAI) Two-lane work of Bhim-Parasoli NH-148D of Rs crore (US$ 11.98) having length of 33 km is under progress and work of km has been completed. Two-lane work of Ladnun Degana Merta city NH-458 of Rs crore (US$ million) having length of km is under progress and work of 124 km has been completed. Bhilwara Ladpura NH-758 two lane work of length km worth US$ million is in progress. Construction work on km road was finished. All villages having a population of 250 persons and above would be connected through roads. Highways and district roads would be strengthened and renovated. Works on missing link roads to connect villages would be undertaken on a priority basis. 12th Five-Year Plan Damaged roads would be repaired on a priority basis by preparing a time bound programme. Road facilities would be extended to places of religious and tourist importance. Inter-state connectivity with neighbouring states would be developed. Efforts are underway to construct flyovers, road over bridges and underpasses on a BOT basis on railway crossings across national highways, state highways and district roads. Source: Government of Rajasthan Economic Review

22 PHYSICAL INFRASTRUCTURE RAILWAYS As of March, 2017, Rajasthan has a total railway network spanning 5,894 km, of which 4, km was covered under broad gauge, km under meter gauge and km under narrow gauge. As per budget , the state government allocated an amount of US$ million for the phase-i-b of metro rail project in the state. Railway projects Project Year of sanction Length (km) Ajmer-Sawai Madhopur In February 2017, the state government approved the laying of a 58.5 km railway track to between Hamira & Sonu. The estimated cost of the project is around US$ million. The Government of Rajasthan has undertaken the development of a Metro Rail Urban Transport Project in Jaipur. Phase-1-A (Mansarovar to Chandpole 12.1 km): In 2010, JMRC entered into an agreement with DMRC for Phase-1-A development on deposit work basis, encompassing 9.7 km. Work of Phase 1A has been completed. Phase-1-B (Chandpole to Badi Chaupar): Comprises underground metro for 2.44 km and 2 stations. Construction work of the 2 stations is under progress. Phase II (Ambabari to Sitapura 23.1 km): Phase II is proposed to be developed on a PPP model Ajmer-Kota (Nasirabad- Jalindri) Source: Maps of India Source: Economic Review of Rajasthan, , State Budget

23 PHYSICAL INFRASTRUCTURE AIRPORTS (1/2) According to the Budget, the state government will undertake development of emergency landing strips on selected highways/ mega highways. The state has a fully operational international airport at Jaipur, with flights to Dubai, Sharjah, Bangkok and Singapore. In December 2017, Jaipur airport handled 455,512 passengers, 2,997 tonnes of freight and recorded 3,982 aircraft movements. Domestic airports are located at Jodhpur, Udaipur, Jaisalmer and Kota. The Airports Authority of India plans to operate civil airports in Jaisalmer and Bikaner. AAI further plans to open an airport at Sawai Madhopur. An air cargo complex at Jaipur, and Inland Container Depots (ICDs) at Jaipur, Jodhpur, Bhilwara and Bhiwadi facilitate trade within and outside India. In April 2017, the state government entered into an agreement with Shri Vallabh Pitte (SVP) Group to setup an aircraft maintenance, repairing and overhaul (MRO) facility in Jhalawar with investment of US$ million. The facility is expected to create about 2,000 new job opportunities The airport at Jaipur has received the first rank among global airports in the Best Airport in the World in 2 to 5 million passenger category of Airport Service Quality (ASQ) awards by Airports Council International (ACI) for the year Airport Name of work Status (%) Jaipur International airport Domestic airport Airport Projects Runway Extension, maintenance of existing runway and drainage & installation of CAT lb ILS 90% Kishangarh Airport Development 71% Source: Airports Authority of India 23

24 PHYSICAL INFRASTRUCTURE AIRPORTS (2/2) Airport indicators in Rajasthan No. of passengers Airport Jaipur 1,981,951 2,197,959 2,887,195 3,783,458 3,427,487 Udaipur 435, , ,187 1,089, ,064 Jodhpur 303, , , , ,846 Aircraft movement Airport Jaipur 19,808 19,852 24,034 32,340 30,890 Udaipur 5,636 5,647 7,462 9,084 6,896 Jodhpur 2,988 3,058 2,976 3,732 4,031 Freight (in tonnes) Airport Jaipur 6,705 3,259 9,370 16,126 13,306 Udaipur Jodhpur Source: Airports Authority of India, 1 As of December

25 , , , , , , , , , , PHYSICAL INFRASTRUCTURE POWER (1/2) As of January 2018, Rajasthan had a total installed power generation capacity of 20, MW. This comprised of 7, MW under state owned projects, 2, MW under central sector projects and 10, MW under private sector projects. 25,000 Installed power capacity (MW) In December 2016, Hindustan Zinc Ltd. announced an investment of US$ 100 million in a 15 MW solar energy project, of which a 10 MW solar power project will be installed at Zinc Smelter Debari and the remaining 5 MW solar power project will be installed at Rajpura Dariba mine of Hindustan Zinc. In January 2017, National Thermal Power Corporation Ltd. announced its plans to take over Rajasthan s 1000 MW Chhabra power plant, followed by 2 plants of 660 MW each. Solar energy has lit up 26 remote villages in Udaipur district in Rajasthan. The villages are lit up through this renewable energy as it is not connected to the electrical grid. Until now in 91 villages, 6200 houses in Bara, Udaipur & Barmer districts have been lit up under this scheme 20,000 15,000 10,000 5,000 In May 2017, Hindustan Construction Company, along with its joint venture partner HSEPL, won a US$ million contract from the state government for the construction of Parwan Gravity Dam In the Bhadla village of Rajasthan, a solar power plant has been set up which currently has a capacity of 480 MW and once it is fully operational, it will have a total capacity of 2,255 MW which will be enough for Rajasthan total demand of power. Note: As of January 2018 Source: Central Electricity Authority 25

26 PHYSICAL INFRASTRUCTURE POWER (2/2) As per the Budget , the total estimated expenditure for power sector in the state stood at US$ 4.17 billion. Investment of US$ 4.58 billion is planned to be done by Cairn India, a Vedanta group company, in Rajasthan Mangala gas fields & Raageshwari Deep Gas (RDG) project, so as to add 1,00,000 barrels per day of oil production capacity, by In April 2017, Vikram Solar, the country s leading PV EPC and module manufacturer commissioned a 130MW PV power plant for the National Thermal Power Corporation (NTPC) in Bhadla, Rajasthan. Transmission network in the state ( in Ckt. Km) Voltage/Year * 765 KV KV KV KV Total New sub-stations and capacity in No/MVA (during and ) Volt KV /6,000 2/6,000 2/7500 2/ KV 9/4,845 9/4,845 9/5,475 9/6,420 9/7,235 9/7,235 13/ / KV 74/15,255 80/18,425 86/19,815 93/22, /24, /25, / / KV 310/18, /21, /23, /24, /26, /27, / /30183 Source: Economic Review of Rajasthan , State Budget , MVA - Mega Volt Ampere, (1) Upto December,

27 PHYSICAL INFRASTRUCTURE TELECOM According to the Telecom Regulatory Authority of India (TRAI), Rajasthan had nearly 0.61 million wire-line subscribers as of December As of September 2017, Rajasthan had 21,680,000 internet subscribers. The state recorded a tele-density of 88.89% as of December By the end of December 2017, 28,093,807 subscribers had submitted request for mobile number portability in Rajasthan. Telecom Infrastructure (As of December 2017) Wireless subscribers 65,808,382 Wireline subscribers 616,090 Internet subscribers (1) 21,680,000 (1) Major telecom operators in Rajasthan Bharat Sanchar Nigam Limited (BSNL) Bharti Airtel Tata Teleservices Reliance Communications Vodafone Essar Aircel Limited IDEA Cellular Services Source: Telecom Regulatory Authority of India, (1) As of September

28 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE (1/3) Rajasthan Urban Infrastructure Development Project (RUIDP) was undertaken by the Government of Rajasthan (GoR) with the financial assistance of Asian Development Bank (ADB), in order to provide quality infrastructural facilities in 6 divisional headquarters of Rajasthan, which was later on further extended to 15 more towns (RUIDP Phase-II RUS$IP). RUIDP Phase- I : Under this program 6 divisional headquarter cities of Ajmer, Bikaner, Jaipur, Jodhpur, Kota & Udaipur were included. The major focus areas were - water supply, waste water management, solid waste management, maintenance of the roads, construction of ROBs/flyovers, drainage, slum improvement, firefighting, heritage preservation & medical & health. The total project cost was around US$ 362 million. In addition, Asian Development Bank contributed around US$ 250 million, and the remaining sum was sanctioned by the State Government. With the inclusion of Jaipur and Bisalpur water supply scheme, the cost of the project was increased. The project was successfully completed and the completed loan amount reimbursed. RUIDP Phase- II : After the success of RUIDP-phase-I, Rajasthan Urban Sector Development & Investment Programme (RUS$IP), ADB approved financing the phase-ii in 3 tranches. The chief objective of the project was to develop the living conditions & urban environment, enhance social & economic development of 15 urban centres of Rajasthan, namely Alwar, Baran, Barmer, Bharatpur, Bundi, Chittorgarh, Churu, Dholpur, Jaisalmer, Jhalawar, Karauli, Nagaur, Raj Samand, Sawai Madhapur & Sikar. The project was successfully completed. The state has undertaken Rajasthan State Highway Investment Programme with external aid from ADB. The project will be completed between November 2017 and March 2022 at a total cost of Rs 2, crore (US$ million). Internal and Extra Budgetary Resources (IEBR) of US$ million was allocated to the state, including: US$ 61.1 million for the Rajasthan Housing Board; US$ million for Jaipur Development Authority; and For the remaining urban local bodies, an amount of US$ million would be provided Source: Rajasthan Urban Infrastructure Development Project, Government of Rajasthan; Rajasthan Budget

29 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE (2/3) *Phase-III (Newly approved Project) with loan assistance from ADB, Government of Rajasthan (GoR) approved the RUS$P - RUIDP Phase III. This program will complement the past and ongoing efforts of GoR in order to improve water supply, sewerage, sanitation to the residents of the selected cities in Rajasthan. The total cost of the project has been estimated to be US$ million. The water management works in Banswara and Mount Abu and remaining sewerage works in Bikaner city fall under program loan component. Community awareness and participation consultants (CAPC) will also be engaged to promote community awareness and participation programs. As per Budget , the government proposed an allocation of US$ 5.65 million for the upliftment of National Urban Livelihood Mission in the state. An announcement for the expansion of Wi-Fi facility across selected public areas of Rajasthan was also made by the state government. Further, US$ million has been allocated to HUDCO as a payment of instalment for Police Housing, Moreover, for Rajasthan Transport Infrastructure Development Fund, an allocation of US$ million has been made. In January 2018, Mr Narendra Modi, Prime Minister of India, presided over a function for commencement of work on Barmer refinery. The refinery is going to be a 9 MMTPA refinery cum petrochemical complex which will be built with an investment of Rs 43,000 crore (US$ 6.64 billion). Source: JNNURM, Ministry of Urban Development, Rajasthan Budget

30 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE (3/3) The Government allocated an amount of US$ million for National Urban Health Mission in the state. The Department of Local Self Government is implementing some programmes. Urban Infrastructure Development Scheme for Small & Medium Towns (UIDSSMT): This scheme was launched to provide basic infrastructure services to the urban poor in small and medium towns. Rajasthan Urban Infrastructure Finance Development Corporation Ltd (RUIFDCO) has been identified as the nodal agency for implementing this scheme. Integrated Housing & Slum Development Programme (IHSDP): The basic objective of this scheme is to provide adequate shelter and basic infrastructure facilities to slum dwellers across identified urban areas. Sewerage projects: The state government has sanctioned seven sewerage projects of casting worth US$ 87 million at Fatehpur Shekhawati, Deedwana, Balotra, Ganganagar, Nathdwara, Makarana and Banswara; work on six towns has been allotted. However, the state government allocated US$ million for the development of ongoing sewerage projects across 7 towns of the state. For the flow of smooth traffic in the state, the government would undertake the following steps: Construction of RoB at Bassi Tunga Road. Widening of the three bridges as well as RoB of Jhotwara. Construction of two pedestrian under passes. Work on construction of 8-lane road from RoB of Jagatpura to Goner Road. Construction of an elevated road from Bhawani Singh Road to Sodala Source: Rajasthan Budget JNNURM, Ministry of Urban Development 30

31 DEVELOPMENT PROJECTS: PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS (1/2) Sector Projects completed Projects under implementation Projects under planning or in pipeline No US$ million No US$ million No US$ million Roads (SH & NH) , Urban infrastructure ,890 Power Water IT Social Any other Total 132 1, , , Source: Ministry of Finance, Government of India 31

32 DEVELOPMENT PROJECTS: PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS (2/2) Details of key public-private partnership projects as of February 2018: Project name Sector Type of PPP Road Upgradation (Udaipur-Rajasthan/Gujarat Border) Project Development of two lane road of Beawer- Gomti section of NH 8 Six laning from 90.0 km to km of Kishangarh- Udaipur-Ahmedabad section under NHDP Phase-V Road Upgradation (Chittorgarh-Neemach-Nimbahera- Pratapgarh) Project Project Cost (US$ million) Stage (BOT) Transport Under Construction (DBFOT) Transport Under Construction (DBFOT) Toll Transport Under Construction (DBFOT) Transport Under construction Road Upgradation (Bikaner-Suratgarh) Project (DBFOT) Transport Under construction Upgradation of Salasar-Nagaur section of NH-65 under NHDP-IV Hybrid Annuity Transport Pre-construction Stage Road Upgradation (Bar-Bilara-Jodhpur) Project (BOT) Transport 1.39 Completed Construction of Bharatpur Bye-Pass Road (BOT) Transport 2.05 Cold Storage Project (Sikar) Lease Social and commercial infrastructure Road Upgradation (Rawatsar-Nohar-Bhadra) Project (DBFOT) Transport Cold Storage Project (Bhawanimandi) Lease Social and commercial infrastructure Beawar-Pali-Pindwara NH-14 Road Project (DBFOT) Toll Transport Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Source: Ministry of Finance, Government of India, BOT: Build-Operate-Transfer, DBFOT: Design, Build, Finance, Operate, Transfer; BOOM- Build, Own, Operate and Maintain 32

33 DEVELOPMENT PROJECTS: SEZs (1/2) SEZs with Formal Approval (As of December 2017) Company name or developer Location Primary industry Area in Hectares Mahindra Worldcity (Jaipur) Limited Kalwara Village, District Jaipur IT/ITeS Somani Worsted Limited Khushkera Industrial Area, Bhiwadi Electronics hardware and software/ ITeS 20 Mansarovar Industrial Development Corporation Kaparda, Jodhpur IT/ITeS 10 GENPACT INDIA Jaipur Electronic hardware and software including IT/ITeS 10 RNB Infrastructure Pvt. Ltd. Bikaner Textile sector Mahindra Worldcity (Jaipur) Limited Kalwara village, District Jaipur Handicrafts Mahindra Worldcity (Jaipur)Limited Jaipur, Rajasthan Engineering and related industries Mahindra World City (Jaipur) Limited Mahindra World City (Jaipur) Limited Village Kalwara, District Jaipur Gems and jewellery Village Kalwara, District Jaipur IT/ITeS Source: Ministry of Commerce & Industry 33

34 DEVELOPMENT PROJECTS: SEZs (2/2) Notified SEZs (As of December 2017) Company name or developer Location Primary industry Area in Hectares Mahindra Worldcity (Jaipur) Limited Kalwara Village, District Jaipur IT/ITeS Somani Worsted Limited Khushkera Industrial Area, Bhiwadi Electronics hardware and software/ ITeS 20 RNB Infrastructure Private Limited Bikaner Textiles Mahindra Worldcity (Jaipur) Limited Kalwara and Bhambhoriya villages, District Jaipur Engineering and related industries Mahindra Worldcity (Jaipur) Limited Kalwara village, District Jaipur Handicraft GENPACT Infrastructure (Jaipur) Pvt. Ltd M/s. Mahindra Worldcity (Jaipur) Limited M/s. Mahindra Worldcity (Jaipur) Limited Village Jamdoli, Tehsil Jaipur IT/ITeS Village Bhambhoriya, District Jaipur Gems and jewellery Jaipur IT/ITeS SEZ with in-principle approval (As of December 2017) Company name or developer Location Primary industry Area in Hectares Arihant Infratech (India) Pvt. Ltd. Udaipur District, Building materials 220 Source: Ministry of Commerce & Industry 34

35 SOCIAL INFRASTRUCTURE Initiatives under Rajasthan Budget : Human Resource and Social Development Two years of child care leave will be available to women government employees Bus travel has been made free for all citizens above 80 years of age The state government is going to allow a one-time waiver of Rs 50,000 (US$ ) for small and marginal farmers in the state Two thousand girls who score 85 per cent in Class 12 examinations will be provided scooties New training programmes will be started for women in 14 Industrial Training Institutes (ITIs) As per the State Budget , the government allocated US$ 6.82 billion to the state under the social and community services. Source: News articles, State Budget

36 SOCIAL INFRASTRUCTURE EDUCATION (1/2) The state has a literacy rate of 66.1%; the male literacy rate is 80.5% and the female literacy rate is 52.7%. The state s school infrastructure consists of primary (40,184), upper primary (37,034) and secondary/sr. secondary (28,243). In total, the state had 1,729 colleges including 118 engineering colleges and 67 MBA colleges, that are functional. As of , there were 223 government sanctioned industrial training institutes (ITIs) with a total sanction of 72,979 and 1,653 private ITIs providing training on 296,528 seating capacity. Moreover, for various ITI schemes in the state, US$ 4.4 million was spent during The state has around 197 polytechnics with an intake capacity of 50,585 students. The state has 200 functional Kasturba Gandhi Balika Vidhalayas (KGBV) established for promoting girls education in the state, wherein education is being imparted to 19,578 girls. In June 2017, the state government decided to award cash prize to meritorious girl students with an aim to promote women education. The award will be open for girl students of classes VIII, X and XII of Rajasthan Board of Secondary Education (RBSE). During , under Rajasthan Minority Financial and Development Co-operative Corporation (RMFDCC), loan of US$ 1.82 million was sanctioned to around 1,351 beneficiaries in the state. Rajasthan s education statistics ( ) Schools (No) Primary: 40,184 Upper primary: 37,034 Secondary/senior secondary: 28,243 Colleges (No) 1,729 ITIs (No) Functional engineering colleges Functional MBA institutions Government sanctioned: 223 Private sector: 1, There are 10 Mewat Balika Awasiya Vidhalayas imparting education to 428 girls in the state. 1 Note: Upto December 2016 Source: Economic Review of Rajasthan

37 SOCIAL INFRASTRUCTURE EDUCATION (2/2) According to Rajasthan Budget Education A total allocation of US$ 5.13 billion for general education. 1,832 schools of various categories will be upgraded by the state government in Also, the state government will undertake the task of establishing 5,863 schools in Gram Panchayats. Allocation of US$ million has been made for development of 3,379 classrooms and toilets in 1,163 Adarsh Schools in the state. Recruitment of nearly 77,100 teaching staff will be undertaken for remote and rural areas. Higher and Technical Education - The state government will provide free Wi-Fi facility in government colleges in the state. Medical Education - A new medical college will be set up by the state government in Dholpur district of the state. Two new examination hall s will be set up in SMS hospital with an investment of Rs 7.9 crore (US$ 1.22 million) With investments of Rs 6 crore (US$ 0.93 million) each, three new cath labs will be set up in the state, one each in Medical College, Bikaner; SMS Hospital and Medical College, Ajmer. Source: Rajasthan Budget

38 SOCIAL INFRASTRUCTURE HEALTH (1/2) Rajasthan has a 3-tier health infrastructure comprising primary health centres, health units, community health centres & sub-centres A number of initiatives such as the Chief Minister s Jeevan Raksha Scheme & the World Bank-assisted Rajasthan Health System Development Project have been taken up to improve healthcare facilities in the state. As per Budget , 28 new primary health centres will be set up and 16 primary healthcare centres will be upgraded to community health centres. A total of 987 AYUSH doctors & 394 nursing staff were active under NHM (National Health Mission), during Health indicators ( ) Population served per hospital bed 1,451 Birth rate Death rate Infant mortality rate 2 41 Life expectancy at birth (year) Male ( ) 64.7 Female ( ) 68.3 Health infrastructure (as of March 2018) Community health centres 628 Primary health centres 2,814 Sub-centres 14,493 Sub District Hospitals 349 District hospitals 36 Source: Economic Review of Rajasthan , Sample Registration System (SRS), 1 Per thousand persons 38

39 SOCIAL INFRASTRUCTURE HEALTH (2/2) As per budget , US$ 1, million was allocated to the medical and health sectors (including Ayurved). An allocation of US$ 95.4 million has been made in State Budget for a new medical college in the state. Allocation of US$ million has been made for National Rural Health Mission (NRHM) in state budget Allocation of US$ million has been made for Family Welfare Department in state budget Allocation of US$ million has been made for National Urban Health Mission in state budget Allocation of US$ million has been made for Dhanvantari Ambulance Service Scheme in state budget Source: Rajasthan Budget

40 CULTURAL INFRASTRUCTURE Cricket, polo and aero-sports, such as parasailing, paragliding, are the popular sports in Rajasthan. The state has various district associations operating under the purview of the Rajasthan Cricket Association. Most important stadiums of the state include Sawai Mansingh Stadium, Chaugan Stadium, Pratap Stadium, Mansarovar Stadium (Jaipur). Golf is another popular sport in the state; water sports is an upcoming area. Rajasthan offers various adventure activities, including camel safari, horse safari, jeep safari and elephant safari. Key cultural centres in Rajasthan include Jawahar Kala Kendra and Radha Krishan Cultural and Convention Centre in Jaipur, Bharatiya Lok Kala Mandal and Meera Kala Mandir in Udaipur, and Desert Cultural Centre in Jaisalmer. Jawahar Kala Kendra, Jaipur House of Museums: Showcases ethnic art pieces displaying Rajasthani folk culture. House of Theatres: Plays with high literary value are staged here. Library: Has books and magazines, along with a record of the forthcoming and past cultural events and exhibitions. Arts Gallery: Displays arts and crafts created by well-known artists. Studio: Exhibits paintings and sculptures by well-known artists. Hostel: Residential facilities. According to Rajasthan Budget The government allocated US$ million for the development of arts and culture in the state. Youth and Sports Allocation of US$10.86 million for sports and youth welfare. An amount of US$ 5.14 million has been allocated for conservation and upkeep of 19 monuments Source: Economic Review of Rajasthan , State Budget

41 SMART CITIES In January 2016, Jaipur and Udaipur were selected to be developed under the Phase I of Smart City challenge. The state of Rajasthan has proposed a total investment of US$ million to develop Ajmer, Jaipur, Kota and Udaipur as smart cities over the next five years. The state government has also setup an 11-member SPV for Jaipur and a 13-member body for Udaipur. These vehicles will approve, sanction and execute the projects besides mobilising resources from various sources to ensure timely and efficient execution of plans. In June 2016, Rajasthan Chief Minister dedicated a number of projects for Jaipur smart city including a rooftop solar power plant, 14 traditional step wells, parking and real-time Public Information System in Bus-Q-Shelter. During September 2016, cities of Kota and Ajmer were chosen to be developed under the smart city program, in the third round of selection. Cities Population Literacy Rate Ajmer 2,583, % Udaipur 3,068, % Kota 1,951, % Udaipur Ajmer Jaipur Kota Jaipur 6,626, % Source: Aranca Research, News articles 41

42 KEY INDUSTRIES (1/2) Bureau of Investment Promotion (BIP) and Rajasthan Industrial Development and Investment Corporation (RIICO) are responsible for promoting investments and developing industrial infrastructure in the state. The Government of Rajasthan is promoting the development of several SEZs across the state for sectors such as gems and jewellery, handicrafts, IT, electronics, automotive/auto components and textiles. Rajasthan is endowed with two critical resources that are essential for solar power production: high level of solar radiation per square inch and large amounts of contiguous, relatively flat, undeveloped land. The natural resources, policy incentives, strategic location and infrastructure in the state are favourably suited for investments in sectors such as cement, IT and ITeS, ceramics, tourism, automotive and agro-based industries. According to state budget , the Government of Rajasthan allocated US$ million for the industry and minerals sector. Industries Provision of US$ 72.8 million for Delhi-Mumbai Industrial Corridor Allocation of US$ million for Rajasthan Refinery Ltd US$ 0.75 million allocated for Khadi and Village industries Online portal of RIPs* will be implemented in every district of the state RIICO will increase the land bank to 10,000 hectare for the industries with GIS provision. Key industries in Rajasthan Cement Auto and auto components Tourism Textile IT and ITeS Agro-based industry Ceramics Gems and jewellery Mining & minerals Marble Handicraft Steel Ceramics Source: Rajasthan Budget , RIPs*: Rajasthan Investment Promotion Scheme 42

43 KEY INDUSTRIES (2/2) Japan has decided to offer a grant worth US$ 75,000 for construction of a vocational training centre for women and youth in the state s Baran district. The grant is expected to improve the lives of people in the project area, and further strengthen the friendly relationship and cooperation between Japan and India In May 2017, Kai Group, a Japan-based kitchen equipment and personal care company, decided to invest US$ million in India over the next three years. The company has set up a plant in Neemrana worth US$ million. Rajasthan government is aiming to increase exports three-fold by 2022 from US$ 6.86 billion in As of November 2017, Vedanta Ltd. is going to invest US$ 850 million to raise oil and gas production from oilfields in Rajasthan. Havells India is planning to set up a new facility in Rajasthan to manufacture consumer durables such as air conditioners, refrigerators, TV and washing machine, etc. Investment intentions in terms of IEMs Filed, LOIs/DILs issued Year Number Proposed Investments (US$ million) , , , , , , , , , * Note: *Up to January 2018 Source: Department of Industrial Policy & Promotion, State Budget , IEM: Industrial Entrepreneurs Memorandum, 43

44 KEY INDUSTRIES CEMENT (1/2) Rajasthan has huge reserves of cement-grade and Steel-Melting- Shop (SMS) grade limestone. SMS-grade limestone from Jaisalmer is supplied to various steel plants in the country. Rajasthan has 24 major cement plants, having a total capacity of 55 million tonnes per annum (MTPA). It is the largest cement-producing state in India. The state has about 17% share in cement grade limestone reserves of India. Key players ACC Limited Ambuja Cement Limited Shree Cement Limited Grasim Industries Limited Rajasthan is host to all major cement producers in the country, with significant presence across the state. Given the availability of huge cement grade limestone reserves, more than 10 cement plants would be installed in the state in near future, particularly in Chittorgarh, Jaipur, Jhunjhunu, Nagaur and Pali. In September 2016, Emami Cement bagged limestone-mining lease for Nagaur 3B1b, Deh block in Rajasthan at a cost of US$ 4.5 per tonne. The block has an estimated reserve of 168Mt. As of 2017, Wonder Cements is looking to establish a cement plant in Dhar district of Rajasthan. Ultratech Cement is going to set up a 3.5 MTPA greenfield integrated cement plant in Rajasthan with an investment of US$ million. 44

45 KEY INDUSTRIES CEMENT (2/2) ACC Ltd ACC is the largest cement producer in India; its plant at Lakheri (Bundi), Rajasthan, has a production capacity of 1.5 MTPA. The company generated total income of US$ 1.75 billion in 2016 and US$ 1.2 billion in H1 FY 18. The company is also one of the largest manufacturers of ready-mix concrete in India. Ambuja Cements Limited has cement plants in Rajasthan, Maharashtra, Gujarat, Himachal Pradesh, Punjab, Chhattisgarh, Uttar Pradesh and West Bengal. Ambuja Cements Ltd The production facility in Rajasthan has a capacity of 2.8 MTPA. The company recorded revenues of US$ 3.15 billion and US$ 1.81 billion in FY 17 and H1 FY18 respectively. The company has an integrated cement plant at Rabriyawas, District Pali, Rajasthan. Shree Cement is the largest cement manufacturer in North India and among the top six cement manufacturing groups in the country. The company sells cement under the brands of Shree Ultra, Bangur and Rockstrong. Shree Cement Shree Cement has manufacturing plants at Beawar, Ras, Khushkhera, Suratgarh and Jaipur in Rajasthan. The revenues generated by the company stood at US$ 1.55 billion during and the total income of the company in the H1 FY18 was US$ million. Grasim Industries Limited is a flagship company of the Aditya Birla Group. Grasim s subsidiary UltraTech Cement has 11 integrated plants, 15 grinding units, five bulk terminals and 101 ready-mix concrete plants across India, the UAE, Bahrain, Bangladesh and Sri Lanka. Grasim Industries Ltd UltraTech Cement has a capacity of 53.9 MTPA. The company has plants at Kotputli and Shambhupura in Rajasthan. The company recorded total income of US$ 5.38 billion in and total revenues recorded in the H1 FY18 were US$ 3.6 billion. 45

46 KEY INDUSTRIES MINING AND MINERAL PROCESSING (1/6) Rajasthan is among the largest mineral-producing states in India. Around 79 varieties of minerals are available in the state and 57 minerals are produced on a commercial scale. Some of the important minerals found in the state are asbestos (amphibole), barytes, feldspar, fireclay, fluorspar, iron ore (magnetite and hematite), ochre, pyrite, silver, phosphate fluoride, wollastonite, rock phosphate, copper, lead-zinc, gypsum, clay, granite, marble, sandstone, dolomite, calcite, emeralds and garnets. It is home to the second highest number of mines in the country (557 mines). The state is a leading producer of major minerals such as wollastonite, lead-zinc, calcite, gypsum, rock phosphate, ochre, silver as well as minor minerals such as marble, sandstone, serpentine (green marble), etc., which contribute almost % to national production. The production of concentrated copper in the state increased from 43.2 thousand tonnes in to 56.8 thousand tonnes in Production of iron ore in the state increased from 696 thousand tonnes in to 1,228 thousand tonnes in Production of lead & zinc ore in the state increased from 8.7 million tonnes in to million tonnes in Production of lead concentrate in the state increased from thousand tonnes in to 268 thousand tonnes in Production of zinc concentrate in the state increased from 1.47 million tonnes in to 1.48 million tonnes in Production of silver in the state increased from 426 thousand tonnes in to 460 thousand tonnes in Key ferro-alloy industries in Rajasthan Copper Lead-Zinc Gold Silver Khetri belt in Jhunjhunu district and Dariba in Alwar district. Deposits of copper also reported to be found in Ajmer, Bharatpur, Bhilwara, Bundi, Chittorgarh, Dungarpur, Jaipur, Pali, Rajsamand, Sikar, Sirohi and Udaipur districts. Zawar in Udaipur district, Bamnia Kalan, Rajpura-Dariba in Rajsamand and Rampura/Agucha in Bhilwara district. Lead-zinc occurrences also reported from Ajmer, Chittorgarh, Pali and Sirohi districts. Banswara and Sirohi districts. Ajmer, Bhilwara, Jhunjhunu, Rajsamand and Udaipur districts. Production of garnet (abrasive) increased from 614 tonnes in to 1,481 tonnes in Production of limestone increased from million tonnes in to million tonnes in Source: Indian Bureau of Mines, Ministry of Mines, Government of India

47 KEY INDUSTRIES MINING AND MINERAL PROCESSING (2/6) As per Budget , US$ 4.49 million was allocated by the state government for the Mines and Geology Department. Rajasthan accounts for million tones in resources of tungsten ore which contributes ~17% of India s resources. For the period April 2017 to October 2017, the state s copper ore production accounted for 31.95% of the country s production. As of November 2015, the state had 3,403 mining leases for major minerals and 11,861 mining leases for minor chemicals. Rajasthan produced 1.1 million tonnes of copper ore and 56.8 thousand tonnes of concentrated copper in The state has come up with - New Mineral Policy, The main emphasis of the policy is on widespread job-creation, introducing cutting-edge technology in exploitation, minimizing wastage and act as a source of higher revenue generation for the government. In , the total value of mineral production in the state of Rajasthan was recorded at US$ 3.91 billion. This was 11.04% of the total production value for the country. Mineral production in the state of Rajasthan (April 2017 October 2017) Name of mineral Unit Production Copper ore Thousand tonnes 614,490 Limestone Thousand tonnes 41,230 Iron ore Thousand tonnes 810 Silver Kg 297,232 Manganese Ore Tonnes 2,137 Lead & Zinc Ore Tonnes 6,719,244 Lignite Thousand tonnes 3,700 Phosphorite Tonnes 596,574 In line with the state government's agenda of becoming the top mining destination in the country, Rajasthan government is holding an open auction of a copper block and four limestone blocks. Source: Ministry of Mines, Government of India, Bureau of Investment Promotion 47

48 KEY INDUSTRIES MINING AND MINERAL PROCESSING (3/6) Base and noble metals: Rajasthan has immense potential for mining base metals and noble metals in a belt that covers the following districts: Alwar, Jhunjhunu, Sikar, Jaipur, Dausa, Bharatpur, Ajmer, Bhilwara, Rajsamand, Pali, Sirohi, Udaipur, Banswara and Dungarpur. Dimensional stones: The state has substantial reserves of different varieties of dimensional stones such as marble, granite, sandstone and slate, with tremendous potential for exports and forward linkages with the construction industry. Lignite: Rajasthan has about 5,720 million tonnes of lignite reserves in the districts of Barmer, Bikaner, Nagaur, Jaisalmer and Jalore. Lignite is being produced in Barmer and Matasukh area of Nagaur. Some lignite blocks in the districts of Barmer, Bikaner and Nagaur have been allotted for setting up thermal power plants. Ceramics: The availability of clay and feldspar in Rajasthan makes it an excellent location for ceramic-related industries (e.g., white-ware, floorings and bone-china). Around 500 ceramic industries, including glass and mineral grinding units, operate in the state. Key players in mining industry Hindustan Zinc Limited Hindustan Copper Limited Rajasthan State Mines and Minerals Limited (RSMML) Key players in ceramics industry Kajaria Ceramics Limited Liberty Whiteware Limited Jaipur Ceramics Private Limited Key players in marble industry Elegant Marble and Granite Inc Maadhav Marbles and Granites Limited 48

49 KEY INDUSTRIES MINING AND MINERAL PROCESSING: MINING (4/6) HZL is a part of the Vedanta Resources Group and has four mines in Rajasthan. Rampura Agucha mine is a zinc mine with annual ore production capacity of 6.15 MTPA. Sindesar Khurd mine has reserves and a resource base of 85.0 million tonnes. Sindesar Khurd has annual ore production capacity of 2 million tonnes per annum (MTPA) Rajpura Dariba mine has an annual ore production capacity of 0.9 million tonnes and bulk concentrate production at Rajpura Dariba has resulted in significant recovery improvements of zinc, lead and silver. It generated a revenue of US$ 2.4 billion in Hindustan Zinc Ltd (HZL) The Zawar mine has a reserves and resources base of 76.4 MT, with ore production capacity of 1.2 MTPA. The company recorded total income of US$ 1, million during H and US$ 3.3 billion in Hindustan Copper Ltd Hindustan Copper Limited is a public sector undertaking under the administrative control of the Ministry of Mines. It is a vertically integrated copper producing company, with facilities of mining, beneficiation, smelting, refining and casting of refined copper metal into downstream-saleable products. The company generated revenues of US$ million in and US$ million during H1 FY18. HCL has four operating units of mines and plants, one of which is the Khetri Copper Complex (KCC) at Khetrinagar in Rajasthan. Rajasthan State Mines and Minerals Limited (RSMML) RSMML is a public sector enterprise of the Government of Rajasthan, primarily engaged in mining and marketing of industrial minerals. The company has various Strategic Business Units (SBUs) in Rajasthan. The rock phosphate SBU is located at Udaipur, gypsum SBU at Bikaner, limestone SBU at Jodhpur and lignite SBU at Jaipur. Going forward, RSMML is targeting cost-effective technological innovations in mining and diversifying into mineralbased downstream projects. The company s total income in the year was US$ million. 49

50 KEY INDUSTRIES MINING AND MINERAL PROCESSING: CERAMIC (5/6) Kajaria Ceramics is the largest manufacturer of ceramic tiles in India. The company has nine manufacturing plants, with an annual capacity of million sq m. The company exports tiles to more than 20 countries worldwide. The company recorded revenues of US$ million in and US$ million during H Kajaria Ceramics has a manufacturing plant at Gailpur, Rajasthan, with an annual capacity of 21.5 million sq m. Kajaria Ceramics Ltd Kajaria has several certifications, including ISO 9001 (for quality management), ISO (for environment management), OHSAS (for safety and health management) and SA-8000 (for commitment to society), ISO (for food safety management), ISO (for energy management). Liberty Whiteware Limited has a sanitary-ware unit, located at Neemrana in Rajasthan. The company has an annual production capacity of 500,000 pieces. Liberty Whiteware Ltd Company is engaged in the production of bathroom products includes shower trays, wash basins and sinks. Jaipur Ceramics has a ceramics plant on the outskirts of Jaipur, with a bone china capacity of 1,500 tonnes per annum. The company has a workforce of about 700 people, including highly skilled and semi-skilled employees. Jaipur Ceramics Pvt Ltd Jaipur Ceramics has an in-house facility for making kiln furniture and can produce tiles and pillars for captive use; the capacity is about 18 tonnes per month. 50

51 KEY INDUSTRIES MINING AND MINERAL PROCESSING: CERAMIC (6/6) Elegant Marbles & Granite Industries Limited markets and processes marble and granite and offers over 84 colours in the Indian market. The company has a factory at Abu Road, Rajasthan. Elegant Marbles & Granite Industries Ltd The company s total installed capacity for processing marble and granite is 2.5 million sq ft. per annum and the total income in the year was US$ 5.36 million. The company imports marble from Italy, France, Norway, Spain, Greece and Nepal. Madhav Marbles and Granites Limited exports its products to North America, South America, Canada, Europe, Australia, South Africa, Russia and the Far East. The company has an installed capacity of 600,000 sq m per annum for processing granite tiles. Maadhav Marbles and Granites Ltd The marble division is located in Udaipur, Rajasthan. 51

52 KEY INDUSTRIES AUTO AND AUTO COMPONENTS (1/2) The Alwar and Jaipur districts are close to major auto production hubs of the country such as Noida (Uttar Pradesh), Gurgaon and Dharuhera (Haryana); offering excellent advantages for setting up of auto and auto ancillary units. Over 100 units are currently functional in Bhiwadi, Neemrana and Pathredi in Alwar district, Rajasthan. These are the 3 main auto clusters in Rajasthan. Some of the key players Amtek Auto Limited Ashok Leyland TAFE Honda Siel Cars India Limited Special auto and engineering zones have been developed in Pathredi Industrial Area and Bhiwadi. Rajasthan has become a prominent base for auto manufacturing with the establishment of a growing auto cluster in Alwar district and Honda's facility at Bhiwadi. Neemrana Japanese zone: A 1,167-acre industrial area in Neemrana has been developed especially for industrial units from Japan. Automotive units of Nissin Brakes, TPR Auto parts, Takata India, Nippon Steel, Toyota Gosei, Mikuni India and Toyota Kirloskar Motor are present in this zone. Hero MotoCorp announced its plans to invest US$ million for building new manufacturing plants across the globe, for increasing its global production capacity. Out of the total passenger car and motorcycle production in India, around 40% it is produced in Alwar district of Rajasthan. Source: Bureau of Investment Promotion, News articles 52

53 KEY INDUSTRIES AUTO AND AUTO COMPONENTS (2/2) Amtek Auto Ltd Amtek Auto Limited is a flagship company of the Amtek Group; it is a leading Indian supplier of auto components, with operations in forgings, machining and sub-assemblies. The company s plant is located at Bhiwadi, District Alwar (Rajasthan). The company supplies over 300 varieties of components and assemblies to leading domestic and global vehicle manufacturers. Its annual machining capacity is 92 million units. The company s revenue in stood at US$ million and during Q it earned a revenue of US$ million. Ashok Leyland Ashok Leyland is a flagship company of the Hinduja Group; it is among the leading manufacturer of commercial vehicles in India. The company has an assembling plant in Alwar (Rajasthan). Ashok Leyland entered into a JV with the Alteams Group, Finland, to manufacture High Pressure Die-Castings (HPDC) and aluminium products, predominantly for the automotive and telecommunications sectors. The company s total income was US$ 3.76 billion in and US$ million for Q TAFE is in the tractor manufacturing business; its subsidiary, TAFE Motors and Tractors Limited, has an engine plant at Alwar and a transmissions plant at Parwanoo. Tractors and Farm Equipment Ltd (TAFE) The diesel engine plant at Alwar, Rajasthan, produces a range of air and water cooled diesel engines from 14 HP to 80 HP. TAFE is certified by ISO 9001, ISO and ISO HSCI was incorporated in December 1995 as a JV between Honda Motor Co, Japan and Siel Limited, a Siddharth Shriram Group company. The company s total annual manufacturing capacity is 100,000 cars. Honda Siel Cars India Ltd The company s product range includes Honda Jazz, Honda City, Honda Civic, Honda CRV and Honda Accord. In Rajasthan, the company has a plant located at Tapakura. In the year the company s total income was US$ million. 53

54 KEY INDUSTRIES TEXTILES (1/2) Rajasthan has a leading position in the production of polyester viscose yarn and synthetic suiting material as well as processing of low-cost, low-weight fabric (at Pali, Balotra, Sanganer and Bagru). Jaipur is a well-known centre for manufacturing garments, primarily for exports. Bhilwara has emerged as India's largest manufacturer of suiting fabrics and yarn. Around 16 ATDC smart centres have been opened in Rajasthan to train people. Availability of raw material and trained labour has promoted the growth of the textile industry and has driven establishment of many textile units in the state. Nine integrated textile parks have been sanctioned in the state at an approved investment of US$ 276 million. With a network of backward and forward linkages, Rajasthan s textile industry offers significant competitive advantages. In the year , total cotton production in the state stood at 1.8 million bales. Some of the sanctioned textile parks in Rajasthan Jaipur Texweaving Park Ltd, Kishangarh Kishangarh Hi-Tech Textile Park Ltd, Kishangah Next Gen Textile Park Pvt Ltd, Pali Jaipur Integrated Texcraft Park Pvt Ltd, Bagru Bharat Fabtex and Corporate Park Pvt Ltd, Pali Mewar Industrial Textile Park Ltd, Pali Types of textiles in Rajasthan Block printing Sanganer, Jaipur, Bagru Bandhani Jodhpur, Pali, Jaipur, Udaipur and Nathdwara Zari/Zardosi Quilting Funds released under Handicraft Schemes ( )- US$ 000 s Ambedkar Hastshilp Vikas Yojana Design Total Some of the key players Rajasthan Spinning and Weaving Mills Ltd Jaykay Enterprises Ltd Shree Rajasthan Syntex Limited Shriram Rayons Source: Bureau of Investment Promotion, Cotton Board, Rajasthan economic review

55 KEY INDUSTRIES TEXTILES (2/2) Rajasthan Spinning and Weaving Mills Limited (RSWM) is a flagship company of LNJ Bhilwara Group. The company produces yarn, fabric, garments and denim; it is one of the largest producers and exporters of polyesterviscose blended yarn in the country. Rajasthan Spinning and Weaving Mills Ltd The company operates around 505,000 spindles and produces 140,000 MT of yarn annually. RSWM has plants in Banswara, Mordi, Kharigram, Mandpam, Ringas and Rishabdev. Jaykay Enterprises Ltd (formerly J K Synthetics Ltd) produces a wide range of synthetic fibres, including nylon yarn and high-tenacity yarn for industrial application, e.g., fishing industry, tyre cord, polyester-filament yarn, polyester staple fibre and tows and acrylic staple fibre. Jaykay Enterprises Ltd The company s plant is located at Kota in Rajasthan and registered a total income of US$ 0.96 million in and US$ 0.24 million for Q Shree Rajasthan Syntex Limited is a manufacturer of synthetic yarn, including acrylic, polyester, viscose and polypropylene multi-filament yarn. Shree Rajasthan Syntex Ltd The company registered a total income of US$ million and US$ 6.68 million during Q The company s plants are located at Dungarpur and Jaipur in Rajasthan. Shriram Rayons, a part of DCM Shriram Industrial Group, is among the country's major manufacturers of high grade rayon tyre cord. It has nylon and rayon conversion facilities catering to the needs of the domestic and international markets. Shriram Rayons The manufacturing plant is located at Kota; the technology partners of the company are Beunit Fibres Inc, USA and Chemtex Inc, USA. 55

56 KEY INDUSTRIES TOURISM (1/2) Developers and investors are offered attractive investment opportunities through the state s popular tourist attractions that include historic cities (Jaipur, Udaipur), wildlife sanctuaries (Sariska, Ranthambore) and deserts (Jodhpur, Jaisalmer). In 2017, million domestic tourists and 1.61 million foreign tourists visited Rajasthan. The state government is encouraging JVs and contract management of private heritage properties (forts, fortresses, palaces and havelis) as well as identifying heritage government properties to award on a lease basis Tourist arrivals in Rajasthan (in million) As per state budget , US$ million was allocated for the tourism department. Domestic Foreign Key Hotels Rambagh Palace Rajvilas Radisson Blu Le Meridien Udaivilas Fairmont ITC-Sheraton The Oberoi Holiday Inn Source: Ministry of tourism, Government of India 56

57 KEY INDUSTRIES TOURISM (2/2) The state runs famous luxury tourist trains such as Royal Rajasthan on Wheels and Palace on Wheels, which connect some of Rajasthan s important tourist destinations to other states. Source: The Department of Tourism, Government of Rajasthan 57

58 KEY INDUSTRIES IT & ITeS (1/4) Rajasthan is emerging as one of the best locations in India to invest in the IT/ITeS sector. IT parks with special infrastructure have been set up at Jaipur, Jodhpur, Udaipur, Kota and Alwar. Rajasthan Investment Promotion Scheme 2014 Every training institute enabling the candidate to get employed in IT/ITeS, will be given training incentive of US$ 34 per candidate for imparting training on communication or soft skills Labour laws to be simplified Rajasthan Venture Capital Fund (RVCF) will support in terms of venture capital BPO/KPOs will be given 50% capital investment subsidy for increasing infrastructure for training Rajasthan e-governance IT & ITeS Policy 2015: The policy was released on November 5, 2015 in Jaipur. The previous IT and ITeS Policy aimed at controlling the IT services in order to implement e-governance initiatives in the state for the betterment of the citizens. This new policy has been released in order to develop public departments and increase the promotion of IT/ITeS/ESDM/Robotics sectors in the state. The robotics, ESDM and manufacturing sectors have been added in the policy for the first time. The policy has was developed by the support of technical experts, academician, various institutions, and for fulfilling the public opinion. Under the state category of egovernance Awards for the year 2017, Rajasthan won Winners of Excellence. The state government allocated US$ million for the Department of Information Technology and Communication in the state for In January 2017, Government of Rajasthan launched its pilot project of cashless transactions in the state s Bharatpur district, Rarah gram panchayat Source: Bureau of Investment Promotion, Government of Rajasthan, ESDM - Electronic System Design & Manufacturing 58

59 KEY INDUSTRIES IT & ITeS (2/4) According to Rajasthan Budget , following steps will be taken by the state government 1,000 more Bhamashah ATMs will be set up in rural areas 250 e-mitra plus will be established in urban areas Implementation of 3D Building Infrastructure Model (BIM) will be undertaken in four smart cities viz. Jaipur, Udaipur, Ajmer and Kota Key players Infosys Tech Mahindra Genpact Wipro Technologies Source: State Budget, Government of Rajasthan 59

60 KEY INDUSTRIES IT & ITeS (3/4) Infosys was set up in 1981; it is engaged in IT consulting, modular global sourcing, process re-engineering, and BPO services. The company has operations in the US, India, China, Australia, Japan, the Middle East, the UK, Germany, France, Switzerland, the Netherlands, Poland, Canada and several other countries. Infosys also has marketing and technological alliances with Informatica, IBM, HP, Microsoft, Oracle, etc. The company recorded total revenue of US$ 11.1 billion in and US$ 2.69 billion during Q Infosys Infosys BPO, the company s BPO services division, has opened BPO campuses at the Mahindra Worldcity, Jaipur, Rajasthan. The company has also launched various industry-specific programmes in Rajasthan, where it collaborates with universities in the state to improve BPO-specific skill sets. Tech Mahindra Tech Mahindra is a global systems integrator and business transformation consulting firm focused on the communications industry. It recorded total income of US$ 4.64 billion during and US$ 1.04 billion of income during Q The company provides a wide variety of services, ranging from IT strategy and consulting to system integration, design, application development, implementation, maintenance and product engineering. Tech Mahindra has accreditations such as ISO 9001:2008 certification, SEI-CMM level 5 assessments and is also CMMI level 5 certified for software development processes. The company has set up two software development centres in Jaipur, Rajasthan. Formerly known as GE Capital International Services, Genpact was set up in India in The company provides a wide range of business process, technology and knowledge services in finance and accounting, collections and customer relations, insurance, procurement and supply chain, analytics, software and IT infrastructure. Genpact The company employs over 77,000 professionals. It has a global operation centre in Jaipur. 60

61 KEY INDUSTRIES IT & ITeS (4/4) Wipro Technologies was established in 1945; it is engaged in IT services, product engineering, technology infrastructure services, BPO and other consulting solutions. The company also provides services such as application development, deployment and maintenance, business intelligence and customer relationship management. Based in Bengaluru, the company has 72 plus global delivery centres and 50 plus industry-specific 'Centres of Excellence' in over 54 countries. Wipro Technologies The total income of Wipro was recorded at US$ 9 billion in and US$ 1.83 billion during Q Wipro Technologies has set up a campus at the Mahindra World City in Jaipur. 61

62 KEY INDUSTRIES CHEMICALS The key chemicals produced in Rajasthan include fertilisers, caustic soda and pesticides. The principal industrial complexes for chemicals are at Jaipur, Kota, Udaipur and Bhilwara. Chambal Fertilisers and Chemicals Ltd (CFCL) CFCL manufactures and distributes urea, agri-inputs, fertilisers, plant protection chemicals, seeds and biofertilisers. The company has two nitrogenous fertiliser (urea) plants near Kota in Rajasthan, with an annual capacity of about 2 MTPA of urea. It is among the largest fertiliser complexes in the private sector in India and generated total income of US$ 1.18 billion during and US$ million during Q P I Industries Ltd P I Industries mainly produces organo-phosphorous insecticides. The company manufacturers and markets agrochemicals, plant nutrients, specialty fertilisers and hybrid seeds. It generated total income of US$ million during and US$ million during Q The company has its R&D unit at Udaipur in Rajasthan. DCM Shriram Industries Limited is a diversified group with operations in sugar, alcohol, organic and inorganic chemicals, drug intermediates, rayon tyre cord, shipping containers and processed cotton yarn. DCM Shriram Industries Ltd The company has a manufacturing facility in Kota, Rajasthan. It generated total income of US$ million during and US$ million during Q

63 KEY INDUSTRIES STEEL Rajasthan s steel industry comprises re-rolling and stainless steel units located mainly in Jodhpur, Alwar and Jaipur. Most of the re-rolling units belong to the small scale sector. Asian Alloys Limited (AAL) Asian Alloys Limited AAL manufactures steel ingots and castings. Its units are located at Bhiwadi in Rajasthan as well as in Punjab. The company s products are mainly used in the paper and rubber industries. Kamdhenu manufactures international quality steel bars and paints. The company generated total income of US$ million during and US$ million in the 2nd quarter of Kamdhenu Ispat Ltd The company has a steel-bars unit in Bhiwadi and a paint division in Alwar. PSL manufactures steel pipes. The company has one of its pipe mills in Jaipur. The company's products include protective coatings for steel pipes, epoxy coatings for reinforcement bars, epoxy powder paint and galvalum range of aluminium sacrificial anodes. PSL is involved in iron-ore processing. PSL Ltd The company generated total consolidated income of US$ million during and US$ 1.48 million in the 2nd quarter of Source: Bureau of Investment Promotion 63

64 KEY INDUSTRIES GEMS AND JEWELLERY Rajasthan is a store house of many precious and semi-precious stones such as emeralds, aquamarines, heliodors, corundums, diamonds, epidotes, topazes, tourmalines, amethysts, crystal quartzes, garnets, and green and blue quartzites. Rajasthan is the largest production centre of coloured precious and semi-precious stones as well as the largest manufacturer of cut and polished diamonds in the country. The state has a wide pool of skilled manpower along with several training institutions. The Government of India is planning to set up India's first gems bourse in Jaipur with an investment of US$ 8.29 million to facilitate organised trading of gem stones. Jaipur s gems and jewellery cluster Production of precious and semi-precious stones such as ruby, emerald, garnets, agate, amethyst, topaz, lapis lazuli, carnelian, etc. World's largest centre for gemstone cutting and polishing. 300-year old cluster accounting for about 90% of worldwide emerald cutting. 100 active exporters and 1,500 sub-contractors operating in the cluster. Employment generation for nearly 200,000 individuals. Key players include - Dwarka Gems Ltd, Jaipur; Kalajee Jewellery, Jaipur; Amprapali, Jaipur; Mangi Chand Bhandari Jewellers, Jodhpur; Dhannu Jewellers, Ajmer; N D Diamonds, Bhilwara; Suranas, Jaipur Opportunities 2 special zones for gems & jewellery have been developed by RIICO at the Export Promotion Industrial Park (EPIP) at Sitapura, Jaipur. Jaipur is world known for fine-cut precious and semi-precious gemstones. Jaipur and Jodhpur are rapidly emerging as export hubs for gems and jewellery. Source: Ministry of Mines, Government of India, Bureau of Investment Promotion, news 64

65 KEY INDUSTRIES OTHER GROWTH SECTORS Agro-processing Rajasthan is the largest producer of rapeseed, bajra, guar seed, spices such as fenugreek, coriander, cumin, fennel and mustard. It is the second largest producer of oilseeds and spices and the third largest producer of soya bean and coarse cereals in India. In , the food grain production in the state stood at million tonnes, which increased to 21.31million tonnes in Total foodgrain production is expected to reach million in The state offers opportunities in areas of organic farming and contract farming as well as creation of post harvest infrastructure such as special warehouses and cold chain as well as testing and certification facilities. Rajasthan has the third-largest cattle population in India, with some of the finest breeds of milch and draught cattle. Rajasthan has the largest population of sheep, cattle and camels. The state accounts for nearly 6.89% of cattle, 16.03% of goats, 11.94% of buffaloes, 13.95% of sheep and 81.31% of camels in the country. Animal husbandry The state has 8 different breeds of sheep that produce quality carpet wool, along with 3 breeds of goats. During , US$ million was allocated for the state s animal husbandry sector. The state is the second-largest producer of milk and the largest producer of wool in India. Investment opportunities are available in areas such as establishing commercial dairy units, wool processing, carpet manufacturing, and poultry and piggery units. Solar energy Rajasthan is endowed with a high level of solar radiation and large amounts of undeveloped land, critical to develop solar energy. With a total desert area of 208,110 sq km, clear, sunny days and average daily solar incidence of 5 7 kwh/sq m, the state is uniquely placed to tap into solar energy profitably. The state government also decided to construct 1,000 bore wells based on the solar energy for which US$ 6.64 million was allocated. Source: Bureau of Investment Promotion, Rajasthan economic review

66 STARTUP INITIATIVES istart Initiative In November 2017, the state government launched a dedicated platform for startups called istart. to facilitate entrepreneurship and job creation in the state. The aim of this initiative is to assist anyone with an entrepreneurial aspiration to take their concepts and business to the next level be it at idea/concept stage or MVP or early-growth stage startups. The platform will work on the access-improve-access model. Startups will undergo mentoring programs and customised & group skill building to focus on areas that need to be improved. Applyifi will provide entrepreneurs and investors a detailed assessment report and a 36-point score card on the startup s potential and investment worthiness. A one month skill-building programme will be organised for startups and startups graduating from the programme will be offered opportunities to pitch their ideas for investments to the state government. istart will also focus on building a digital infrastructure in the form of a set of APIs that the government, startups, developers and businesses can utilise for solving problems faced by them. A quarterly Start-up Showcase Yatra will be orgainsed in Mumbai, Delhi-NCR and Bengaluru to offer startups exposure to key investors and enablers of the startup ecosystem. In August 2017, the state government has also announced a US$ million fund for promotion of startups of Rajasthan. A new incubation centre, Bhamashah Techno Hub, will also be set up Jaipur. It will act as a one stop destination for entrepreneurs and techentusiasts. Source: istart website, startup2day, News Articles 66

67 SINGLE-WINDOW APPROVAL MECHANISM Rajasthan s Single Window Clearance System (SWCS) is a single point of contact to reduce the time and efforts involved in various clearances and approvals of layouts/applications for the proposed investment submitted by investors. This online application shall render transparency to the system, thereby facilitating investors with expeditious and time-bound clearances and approvals. This system has come into effect from 1 April 2011 in all the districts of the state. Application through SWCS is mandatory for all projects involving investments above US$ 165,893. This system will grant permissions, invoking and using clearance mechanism, in case of failure of the original competent authorities to decide on application within the specified time. This system will serve as a single point interface between investors and various Government departments. SWCS will provide an electronic-based transparent system for online tracking of application/forms and also keep entrepreneurs updated on information relating to relevant rules, regulations, orders, policy initiatives and schemes for guidance. With the introduction of the Single Window Ordinance/Act and Single Window Clearance Portal, setting up and operationalising projects and investment proposals in the state is expected to become a speedy, uninterrupted and hassle-free process. Investor also has the right to appeal against the decision of rejection by the Department before the State Empowered Committee. 67

68 KEY INVESTMENT PROMOTION OFFICES (1/3) Agency Description Contact information BIP is a nodal agency of the Government of Rajasthan that facilitates investments in various sectors in the state. It provides one stop service, mainly for large projects, by acting as an interface between entrepreneurs and the Government. Bureau of Investment Promotion (BIP) Role of BIP in Rajasthan: Identifying investment opportunities. Providing access to information that is critical for setting up of projects. Assisting translation of investment possibilities into concrete investment proposals. Nodal agency for single-window clearances. Facilitation on behalf of investors with all Government departments /agencies to ensure that proposals get immediate attention. Assisting in site selection and obtaining infrastructural facilities. Interfacing with Government departments for required clearances. Udyog Bhawan, Tilak Marg Jaipur , Rajasthan Phone: , , Fax: bip.raj@nic.in Website: 68

69 KEY INVESTMENT PROMOTION OFFICES (2/3) Agency Description Contact information RIICO is the sole agency in the state that develops land for industrial growth. It provides financial assistance and other vital infrastructural facilities for industries. Role of RIICO: Identifying investment opportunities. Rajasthan State Industrial Development and Investment Corporation (RIICO) Providing access to information that is critical for setting up of projects. Assisting translation of investment possibilities into concrete investment proposals. Nodal agency for single-window clearances. Facilitation on behalf of investors with all Government departments /agencies to ensure that proposals get immediate attention. Assisting in site selection and obtaining infrastructural facilities. Interfacing with Government departments for required clearances. Udyog Bhawan, Tilak Marg Jaipur, Rajasthan Phone: / riico@riico.co.in Website: 69

70 KEY INVESTMENT PROMOTION OFFICES (3/3) Agency Description Contact information Udyog Bhawan, Tilak Marg Jaipur , Rajasthan Rajasthan Financial Corporation (RFC) PDCOR Limited RFC provides medium- and long-term loans for new industrial units in the SME sector. It also assists in planning a balanced development of industries in the state. PDCOR Limited (PDCOR) is a company jointly promoted by the Government of Rajasthan and Infrastructure Leasing & Financial Services Limited (IL&FS) to facilitate private sector investment in the infrastructure sector of Rajasthan. Phone: Fax: info@rfc.rajasthan.gov.in Website: First Floor, LIC Jeevan Nidhi Building Near Ambedkar Circle, Bhawani Singh Road, Jaipur , Rajasthan Phone: Fax: info@pdcor.com Website: 70

71 KEY APPROVALS REQUIRED (1/3) Permission and clearances required Land conversion Land allotment Exemption in the land ceiling limit Permission for land use (In case industry is located outside an industrial area) No-Objection Certificate (NOC) and consent under Water and Air Pollution Control Act Respective departments/ organisations of state Revenue department Time limit (within working days) Up to 10 hectares: 30 days from submission of completed application to district collector. Above 10 hectares: 60 days from submission of completed application to State Government. In case the allotment is to be made at the district level: 30 days from submission of completed application to district collector. In case Government s approval is required: 60 days from submission of completed application to the State Government. 60 days at the level of State Government from the date of submission of application in the district collector s office. a) IDCO b) Department of Town and Country Planning c) Local authority/district Collector Orissa State Pollution Control Board (OSPCB) Source: Industries Department Notification, News Articles 71

72 KEY APPROVALS REQUIRED (2/3) Permission and clearances required Release of power connection Respective departments/ organisations of state Energy Department (Jaipur Vidyut Vitran Nigam Ltd) Time limit (within working days) For loads up to 25 kw: Issue of demand notice: 21 days from receipt of application. Release of connection: 30 days after compliance of demand notice if no augmentation is required. Otherwise 45 days. For loads above 25 kw and up to 300 kw: Issue of demand notice: 21 days from receipt of application. Release of connection: 60 days after compliance of demand notice. For loads above 300 kw and up to 2,000 kw Issue of demand notice: 21 days from receipt of application. Release of connection: 60 days after compliance of demand notice. For loads above 2,000 kw and up to 3,000 kw: Issue of demand notice: 60 days from receipt of application. Release of connection: 60 days after compliance of demand notice. Source: Industries Department Notification, News Articles 72

73 KEY APPROVALS REQUIRED (3/3) Permission and clearances required Release of power connection Respective departments/ organisations of state Energy Department (Jaipur Vidyut Vitran Nigam Ltd) Time limit (within working days) For loads above 3,000 kw and up to 5,000 kw: Issue of demand notice: 21 days from receipt of application. Release of connection: 120 days after compliance of demand notice. Sanction of loan Allotment of plots in industrial area Rajasthan State Industrial Development and Investment Corporation (RIICO) 40 days 30 days Registration under the VAT Act Registration under the CST Act Tax clearance certificate Commercial Taxes Department 24 hours 24 hours One day in case of non-default of tax payment Drug Licence Wholesale 15 days Drug Licence Retail Manufacturing of gauge bandage, cotton, repacking Medical and Health Directorate 15 days 45 days Source: Industries Department Notification, News Articles 73

74 COST OF DOING BUSINESS IN Cost parameter Cost estimate Source Industrial land (per sq ft) US$ 70 to US$ 130 Industry sources Labour cost (minimum wages per day) US$ 3.0 to US$ 5.5 Ministry of Labour and Employment, Government of India, April 2014 Hotel costs (five star) US$ 95 to US$ 385 per room per night Leading hotels in the state Office space rental (per sq ft) US$ 0.22 to US$ 2.5 per month Industry sources Residential space rental Power cost (per kwh) US$ 0.05 to US$ 0.28 per sq ft per month (rates depend on the type of structure and location) Domestic: 7.9 cents (US), Commercial: 11.3 cents (US), Industrial: 9.7 cents (US), Agriculture: 2.5 cents (US) Industry sources DCH Databook, October

75 STATE ACTS & POLICIES (1/4) Objectives Policy for Promoting Generation of Electricity from Wind, 2012 To promote generation of power from wind. To offer solutions to various problems faced by developers, power producers and utilities. Renewable Purchase Obligation (RPO) has been increased to 6.8%. Read more Rajasthan Solar Energy Policy, 2014 To reduce dependence on conventional sources of energy by promoting the development of non-conventional energy sources, especially solar power. To help Rajasthan attain self-sufficiency in its energy needs. To facilitate installation of 25,000 MW solar power through state or private enterprises or through public private partnerships or through individual efforts. Read more Policy for Promoting Generation of Electricity from Biomass, 2010 To promote generation of power from biomass. To offer solutions to various problems faced by developers, investors, Independent Power Producers (IPPs) and utilities. Read more Rajasthan State Environment Policy, 2010 Conserve and enhance environmental resources. Assure environmental sustainability of key economic sectors. Improve environmental governance and build capacity. Read more 75

76 STATE ACTS & POLICIES (2/4) Objectives To achieve higher and sustainable economic growth through greater private investment in manufacturing as well as services sectors. To promote environmentally sustainable industrial growth and balanced regional development. Rajasthan Industrial and Investment Policy, 2010 To create a supportive policy and institutional environment as well as infrastructure that facilitates and fosters private sector investment and enterprise. To encourage rapid growth of sectors in which Rajasthan has natural or strategic advantages. To achieve optimal development of human capital and promote knowledge-led growth. Enhance employment opportunities for the growing young population. Read more To increase farmers income through more remunerative prices for their produce. To encourage value addition in agricultural produce and to reduce post-harvest losses. Policy for Promotion of Agro-processing and Agri-business, 2010 To bring in new technologies and practices to modernise agro-processing and marketing. To promote export of agri-products of the state and to build a strong state brand in the domestic and international markets. To attract private investment in agro-processing and create new employment opportunities on a large scale. Read more 76

77 STATE ACTS & POLICIES (3/4) Objectives Released in November, 2015, the main objective of the policy is to bring the citizens and public services closer to one another. E-Governance and IT/ITeS Policy, 2015 Provision of IT for good governance in the state. Enhanced investments in IT/ITeS, ESDM and robotics sector for promoting economic development of the state. Achieving efficiency, transparency and reliability in different public services to improve these services by controlling e-governance in the state. Read more The Rajasthan Tourism Unit Policy, 2015 is expected to reinforce existing infrastructure Tourism Policy of Rajasthan It will encourage infrastructural development It will generate income as well as employment and will also increase the availability of rooms in hotels for tourists Rural tourism is expected to increase with opening up of heritage hotels in the rural or panchayat areas Read more Positioning Rajasthan as an attractive destination for the biotech industry. Creating and upgrading biotechnology infrastructure. Creating quality infrastructure for research and commercial activities. Biotech Policy Creating a strong base in academics Creating most basic understanding about the sector Human resources should be generated for the sector More and more biotech industries should be invited in the state Read more 77

78 STATE ACTS & POLICIES (4/4) Objectives Rajasthan Mineral Policy 2015 The Rajasthan Mineral Policy 2015 aims at providing a favourable framework for the legal, procedural, fiscal as well as regulatory aspects in the investment system. The other objective of the policy is to improve the exploration of the mineral wealth of Rajasthan through various inhouse facilities and by outsourcing different enhanced techniques. To enhance and improve the employment opportunities in the state. Read more The policy came into force w.e.f October 9, 2015 and will be in force for a period of five years. Key objectives of the policy are to establish 50 incubators, support 500 innovative startups, mobilise US$ million of Angel and Venture Capital and develop an innovation culture in the state. Rajasthan Startup Policy 2015 Under the policy US$ 1,866 will be provided, over a year, as sustenance allowance to the startup recommended by Nodal Institution and approved by the committee. Efforts will be made to provide relevant benefits available under various schemes of the central and state government to all startups. A major startup fest and two mini startup fests will be organised to provide national and international visibility to startups. Read more Upcoming Policy: Gravel Mining Policy 78

79 EXCHANGE RATES Exchange Rates (Fiscal Year) Year INR equivalent of one US$ Q Q Q Source: Reserve Bank of India 79

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