Copyright © 2017 by Confederation of Indian Industry (CII), All … Climate In NR States... · 2018-07-09 · • Industrial Profile Section 2: Industrial Inputs in the Northern

Copyright © 2017 by Confederation of Indian Industry (CII), All rights reserved.

No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of the copyright owner. CII has made every effort to ensure the accuracy of information presented in this document. However, neither CII nor any of its office bearers or analysts or employees can be held responsible for any financial consequences arising out of the use of information provided herein. However, in case of any discrepancy, error, etc., same may please be brought to the notice of CII for appropriate corrections.

Published by Confederation of Indian Industry (CII), Northern Region HeadquartersBlock No. 3, Dakshin Marg, Sector 31-A, Chandigarh 160030 (India), Tel: +91-172-5022522 / 2607228Fax: +91-172-2606259; Email: [email protected]; Web: www.cii.in

Copyright © 2017 by Confederation of Indian Industry (CII), All rights reserved.

No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of the copyright owner. CII has made every effort to ensure the accuracy of information presented in this document. However, neither CII nor any of its office bearers or analysts or employees can be held responsible for any financial consequences arising out of the use of information provided herein. However, in case of any discrepancy, error, etc., same may please be brought to the notice of CII for appropriate corrections.

Published by Confederation of Indian Industry (CII), Northern Region HeadquartersBlock No. 3, Dakshin Marg, Sector 31-A, Chandigarh 160030 (India), Tel: +91-172-5022522 / 2607228Fax: +91-172-2606259; Email: [email protected]; Web: www.cii.in

TABLE OF CONTENTS

Introduction

Section 1: Northern Region – An Introduction _________________ 01

• Economic Profile

• Demographic Profile

• Infrastructure Profile

• Industrial Profile

Section 2: Industrial Inputs in the Northern Region ____________ 13

• Land

• Power

• Water

• Labour & Wages

Section 3: State Industrial Promotion Policies ________________ 25

• State Government Policies & Incentives for the Industry

Section 4: Ease of Doing Business in Northern States __________ 33

Section 5: New Industrial Investments ______________________ 39

• Implementation of Industrial Entrepreneur Memoranda (IEMs)

• Foreign Direct Investment

• Outstanding Investments

Annexures ____________________________________________ 42

• Annexure I - Key Contacts

Notes ________________________________________________ 52

TABLE OF CONTENTS

Introduction

Section 1: Northern Region – An Introduction _________________ 01

• Economic Profile

• Demographic Profile

• Infrastructure Profile

• Industrial Profile

Section 2: Industrial Inputs in the Northern Region ____________ 13

• Land

• Power

• Water

• Labour & Wages

Section 3: State Industrial Promotion Policies ________________ 25

• State Government Policies & Incentives for the Industry

Section 4: Ease of Doing Business in Northern States __________ 33

Section 5: New Industrial Investments ______________________ 39

• Implementation of Industrial Entrepreneur Memoranda (IEMs)

• Foreign Direct Investment

• Outstanding Investments

Annexures ____________________________________________ 42

• Annexure I - Key Contacts

Notes ________________________________________________ 52

1 2 Census 2011 Compounded Annual Growth Rate

SECTION 1: NORTHERN REGION – AN INTRODUCTION

The Northern Region, comprising of eight states, contribution of Northern Region towards the national Delhi, Haryana, Himachal Pradesh, Jammu and GDP was around 26 per cent during 2014-15.Kashmir, Punjab, Rajasthan, Uttarakhand & Uttar

The economy of the region has been consistently Pradesh and the Union Territory of Chandigarh, growing over the years. Service sector has played a accounts for around 31 per cent of the total area and key role in the regional growth, with the sector population of the country. Northern states of

2growing at a CAGR of 8.1 per cent during the period Rajasthan and Uttar Pradesh are the largest states in FY2011-12 to FY2014-15.1the country by area and population respectively. The

Chart 1: Share in Regional GDP in FY 2014-15 (in %)

Source: CSO, CII Analysis

A state-wise analysis of the growth shows that Uttar concerned; Chandigarh leads with a growth of 8.4 Pradesh has the highest share in the regional GDP per cent closely followed by Delhi, Haryana and accounting for 30 per cent in 2014-15. As far as the Himachal Pradesh.CAGR for the period FY 2011-12 to FY 2014-15 is

ECONOMIC PROFILE

Investments flowing into a country or any of its regions depend greatly upon the returns that the investors expect and at the same time on the ease of doing business. Hence, the necessity to study the investment climate of a country/region/states has a significant bearing on its ability to attract investment.

Investment climate is shaped by several factors. These factors play a crucial role in shaping the decision of an investor. It is important to determine and assess these factors to gauge the Region's/ state's prospective attractiveness or the lack of it, as a potential investment destination.

Overall macro issues relating to economic and political stability, fiscal, monetary and economic policies and governance issues, play an important role in this context. While most of these macro indicators are applicable for assessing the investment climate of a country, issues concerning political stability, governance, certain fiscal issues are equally important indicators impacting investment climate of the states in India. While such analysis allows scope to focus on critical issues which shape business environment, it also helps to draw attention to areas which need prioritisation and reform.

Objective and Structure of the Report

The Report's objective is to study the investment climate of the Northern States of India viz.Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand and UT Chandigarh.

The report is structured along the following lines:

Section 1 gives a brief economic, demographic, infrastructure snapshot of the states. The focus of the study thereafter shifts to parameters which shape the investment climate of the states, and to assess how the states fare against each of these parameters.

Section 2 dwells on land availability in the states. The chapter showcases the efforts of the individual State Industrial Development Corporations in allocating land for industrial use, the state governments' initiatives in establishing industrial parks/clusters and the status of SEZs in the respective states. This chapter also discusses about the availability of power, water and wage structure in Northern states.

Section 3 dwells on the respective state policies and incentives devised to attract investments and create a whole ecosystem for the development of the industrial base. Improved regulatory environment for doing business is an important parameter to understand the state's responsiveness to attract investments. This particularly relates to Ease of Doing Business which is discussed in Section 4.

Section 5 given that the above parameters shape investment considerations, it will be interesting to review the status of investment flows to these states over the past few years. This Section gives a brief status on inflow of investments in the states.

EXECUTIVE SUMMARY

NORTHERN REGION – AN INTRODUCTION

INVESTMENT CLIMATE - A Report on Northern States of India 01

1 2 Census 2011 Compounded Annual Growth Rate

SECTION 1: NORTHERN REGION – AN INTRODUCTION

The Northern Region, comprising of eight states, contribution of Northern Region towards the national Delhi, Haryana, Himachal Pradesh, Jammu and GDP was around 26 per cent during 2014-15.Kashmir, Punjab, Rajasthan, Uttarakhand & Uttar

The economy of the region has been consistently Pradesh and the Union Territory of Chandigarh, growing over the years. Service sector has played a accounts for around 31 per cent of the total area and key role in the regional growth, with the sector population of the country. Northern states of

2growing at a CAGR of 8.1 per cent during the period Rajasthan and Uttar Pradesh are the largest states in FY2011-12 to FY2014-15.1the country by area and population respectively. The

Chart 1: Share in Regional GDP in FY 2014-15 (in %)


A state-wise analysis of the growth shows that Uttar concerned; Chandigarh leads with a growth of 8.4 Pradesh has the highest share in the regional GDP per cent closely followed by Delhi, Haryana and accounting for 30 per cent in 2014-15. As far as the Himachal Pradesh.CAGR for the period FY 2011-12 to FY 2014-15 is

ECONOMIC PROFILE

Investments flowing into a country or any of its regions depend greatly upon the returns that the investors expect and at the same time on the ease of doing business. Hence, the necessity to study the investment climate of a country/region/states has a significant bearing on its ability to attract investment.

Investment climate is shaped by several factors. These factors play a crucial role in shaping the decision of an investor. It is important to determine and assess these factors to gauge the Region's/ state's prospective attractiveness or the lack of it, as a potential investment destination.

Overall macro issues relating to economic and political stability, fiscal, monetary and economic policies and governance issues, play an important role in this context. While most of these macro indicators are applicable for assessing the investment climate of a country, issues concerning political stability, governance, certain fiscal issues are equally important indicators impacting investment climate of the states in India. While such analysis allows scope to focus on critical issues which shape business environment, it also helps to draw attention to areas which need prioritisation and reform.

Objective and Structure of the Report

The Report's objective is to study the investment climate of the Northern States of India viz.Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand and UT Chandigarh.

The report is structured along the following lines:

Section 1 gives a brief economic, demographic, infrastructure snapshot of the states. The focus of the study thereafter shifts to parameters which shape the investment climate of the states, and to assess how the states fare against each of these parameters.

Section 2 dwells on land availability in the states. The chapter showcases the efforts of the individual State Industrial Development Corporations in allocating land for industrial use, the state governments' initiatives in establishing industrial parks/clusters and the status of SEZs in the respective states. This chapter also discusses about the availability of power, water and wage structure in Northern states.

Section 3 dwells on the respective state policies and incentives devised to attract investments and create a whole ecosystem for the development of the industrial base. Improved regulatory environment for doing business is an important parameter to understand the state's responsiveness to attract investments. This particularly relates to Ease of Doing Business which is discussed in Section 4.

Section 5 given that the above parameters shape investment considerations, it will be interesting to review the status of investment flows to these states over the past few years. This Section gives a brief status on inflow of investments in the states.

EXECUTIVE SUMMARY



As far as the contribution of the Northern Region in 2014-15. Whereas, the contribution of the region in the country's primary sector is concerned, it India's secondary sector & tertiary sector stood at accounted for a significant 28.9 per cent share in 25 per cent & 26.9 per cent respectively.

CHANDIGARH

The UT of Chandigarh, being the first planned city of The contribution of tertiary sector in Chandigarh's India, has one of the highest per capita income and GVA increased to 88.3 per cent in 2015-16 as consumption levels in the country. The Gross State compared to 86.5 per cent in 2011-12, while the Domestic Product (GSDP) size of Chandigarh share of both primary and secondary sectors has increased to Rs 264 billion in 2015-16 (at 2011-12 declined during the period.prices) as against Rs 188 billion in 2011-12, growing at a CAGR of 8.9 per cent during this period. The corresponding growth rates of primary secondary and tertiary sectors were –0.7 per cent, 5.2 per cent and 9.2 per cent respectively.

Chart 4 : Sectoral Contribution in the Northern Region's GVA (in %)


Chart 5: GSDP Size and Growth Rate


Chart 6 : Sectoral Composition of GVA (in %)


Once predominantly an agrarian economy, the consistently. The contribution of tertiary sector in economic landscape of the region is fast the regional GVA has increased to 52.5 per cent changing with the share of tertiary sector in the during 2014-15 from 49 per cent in 2011-12.regional Gross Value Added (GVA) increasing

Chart 3 : Per Capita Income in FY 2014-15 (in Rs)



Chart 2: CAGR of GSDP (FY 2011-12 - FY 2014-15) (in %)

The Per Capita Income (PCI) at current prices for the average (Rs 98,135). Moreover, Chandigarh, Delhi, year 2014-15 shows that Chandigarh, Delhi, Haryana, Haryana and Uttarakhand features in top 10 in the Himachal Pradesh, Punjab & Uttarakhand have country in terms of PCI.higher per capita income compared to national




INVESTMENT CLIMATE - A Report on Northern States of India02

As far as the contribution of the Northern Region in 2014-15. Whereas, the contribution of the region in the country's primary sector is concerned, it India's secondary sector & tertiary sector stood at accounted for a significant 28.9 per cent share in 25 per cent & 26.9 per cent respectively.

CHANDIGARH

The UT of Chandigarh, being the first planned city of The contribution of tertiary sector in Chandigarh's India, has one of the highest per capita income and GVA increased to 88.3 per cent in 2015-16 as consumption levels in the country. The Gross State compared to 86.5 per cent in 2011-12, while the Domestic Product (GSDP) size of Chandigarh share of both primary and secondary sectors has increased to Rs 264 billion in 2015-16 (at 2011-12 declined during the period.prices) as against Rs 188 billion in 2011-12, growing at a CAGR of 8.9 per cent during this period. The corresponding growth rates of primary secondary and tertiary sectors were –0.7 per cent, 5.2 per cent and 9.2 per cent respectively.

Chart 4 : Sectoral Contribution in the Northern Region's GVA (in %)




Chart 6 : Sectoral Composition of GVA (in %)


Once predominantly an agrarian economy, the consistently. The contribution of tertiary sector in economic landscape of the region is fast the regional GVA has increased to 52.5 per cent changing with the share of tertiary sector in the during 2014-15 from 49 per cent in 2011-12.regional Gross Value Added (GVA) increasing

Chart 3 : Per Capita Income in FY 2014-15 (in Rs)



Chart 2: CAGR of GSDP (FY 2011-12 - FY 2014-15) (in %)

The Per Capita Income (PCI) at current prices for the average (Rs 98,135). Moreover, Chandigarh, Delhi, year 2014-15 shows that Chandigarh, Delhi, Haryana, Haryana and Uttarakhand features in top 10 in the Himachal Pradesh, Punjab & Uttarakhand have country in terms of PCI.higher per capita income compared to national





During 2016-17, the GSDP size of Haryana increased period. The corresponding growth rates of primary, to Rs 4,346 billion as against Rs 2,975 billion in 2011- secondary and tertiary sectors were 1.8 per cent, 6.5 12, recording a CAGR of 7.9 per cent during this per cent and 10.5 per cent respectively.

HARYANA



The contribution of tertiary sector in Haryana's GSVA declined during this period. It is interesting to note increased to 51.7 per cent in 2016-17 as compared that share of the manufacturing sector increased to to 44.9 per cent in 2011-12 while the corresponding 20.9 per cent in 2016-17 compared to 19.4 per cent share of primary and secondary sectors have during 2011-12.

Chart 10: Sectoral Composition of GSVA (in %)


2016-17

4346

Delhi's GSDP recorded a CAGR (FY12 to FY17) growth corresponding CAGR growth rates of primary, of 7.7 per cent to Rs 4,982 billion in 2016-17 as secondary and tertiary sectors were 6.8 per cent, against Rs 3,438 billion in 2011-12. The 10.1 per cent and 6.9 per cent respectively.



While the contribution of secondary sector in Delhi's per cent in 2011-12, the corresponding share of both GVA increased to 14.9 per cent in 2016-17 from 13.1 primary and tertiary sectors witness maginal decline.

DELHI







During 2016-17, the GSDP size of Haryana increased period. The corresponding growth rates of primary, to Rs 4,346 billion as against Rs 2,975 billion in 2011- secondary and tertiary sectors were 1.8 per cent, 6.5 12, recording a CAGR of 7.9 per cent during this per cent and 10.5 per cent respectively.

HARYANA



The contribution of tertiary sector in Haryana's GSVA declined during this period. It is interesting to note increased to 51.7 per cent in 2016-17 as compared that share of the manufacturing sector increased to to 44.9 per cent in 2011-12 while the corresponding 20.9 per cent in 2016-17 compared to 19.4 per cent share of primary and secondary sectors have during 2011-12.



2016-17

4346

Delhi's GSDP recorded a CAGR (FY12 to FY17) growth corresponding CAGR growth rates of primary, of 7.7 per cent to Rs 4,982 billion in 2016-17 as secondary and tertiary sectors were 6.8 per cent, against Rs 3,438 billion in 2011-12. The 10.1 per cent and 6.9 per cent respectively.



While the contribution of secondary sector in Delhi's per cent in 2011-12, the corresponding share of both GVA increased to 14.9 per cent in 2016-17 from 13.1 primary and tertiary sectors witness maginal decline.

DELHI







PUNJAB RAJASTHAN

Widely recognised as the “Granary of India”, the Rajasthan is the largest Indian state in terms of area GSDP of Punjab grew at a CAGR of 5.5 per cent (FY 12 comprising of the 10.4 per cent of the total to FY 15) to Rs 3,133 billion in 2014-15 as against Rs geographical area of the country. The GSDP size of 2,666 billion in 2011-12. The corresponding growth the state increased to Rs 5,121 billion during 2014-15 rates of primary, secondary and tertiary sectors were as against Rs 4,365 billion in 2011-12, recording a 0.4 per cent, 3.2 per cent and 8.1 per cent CAGR of 5.5 per cent (FY 12 to FY 15). The respectively. corresponding growth rates of primary, secondary

and tertiary sectors were 6 per cent, -1.2 per cent and 9.2 per cent respectively.

The contribution of tertiary sector in Punjab's GSVA The contribution of tertiary sector in Rajasthan's has increased to 48.4 per cent in 2014-15 from 43.8 GSVA has increased to 43.1 per cent in 2014-15 from per cent in 2011-12. However, share of both the 38.7 per cent in 2011-12. The primary sector has primary and secondary sectors have reported a shown a marginal increase in its contribution to 33.6 decline.per cent in 2014-15 from 33 per cent in 2011-12. However, the share of secondary sectors has witnessed a decline during the period.

Chart 15 : GSDP Size and Growth Rate








HIMACHAL PRADESH JAMMU & KASHMIR

The GSDP size of Himachal Pradesh grew at a CAGR Known as 'Paradise on Earth', the GSDP of Jammu & of 7.0 per cent (FY 12 to FY 15) to Rs 890 billion in Kashmir increased at a CAGR of 5.2 per cent (FY12 to 2014-15, as against Rs 727 billion in 2011-12. The key FY16) to Rs 959 billion in 2015-16 as against Rs 782 sectors like primary, secondary and tertiary, grew at billion in 2011-12. The corresponding growth rates of 3.7 per cent, 6.7 per cent and 8.9 per cent primary, secondary and tertiary sectors were 2 per respectively. cent, 2.3 per cent and 6.8 per cent respectively.

The contribution of tertiary sector has increased to The contribution of tertiary sector in the GSVA of 58.8 per cent in 2015-16 from 54.4 per cent in 2011-Himachal Pradesh increased to 41.1 per cent in 12. On the other hand, the primary and the 2014-15 as against 39 per cent in 2011-12. The share secondary sector have witnessed a decline in their of manufacturing sector also increased marginally to share.26.3 per cent.

Chart 12 : Sectoral Composition of GSVA (in %)












PUNJAB RAJASTHAN

Widely recognised as the “Granary of India”, the Rajasthan is the largest Indian state in terms of area GSDP of Punjab grew at a CAGR of 5.5 per cent (FY 12 comprising of the 10.4 per cent of the total to FY 15) to Rs 3,133 billion in 2014-15 as against Rs geographical area of the country. The GSDP size of 2,666 billion in 2011-12. The corresponding growth the state increased to Rs 5,121 billion during 2014-15 rates of primary, secondary and tertiary sectors were as against Rs 4,365 billion in 2011-12, recording a 0.4 per cent, 3.2 per cent and 8.1 per cent CAGR of 5.5 per cent (FY 12 to FY 15). The respectively. corresponding growth rates of primary, secondary

and tertiary sectors were 6 per cent, -1.2 per cent and 9.2 per cent respectively.

The contribution of tertiary sector in Punjab's GSVA The contribution of tertiary sector in Rajasthan's has increased to 48.4 per cent in 2014-15 from 43.8 GSVA has increased to 43.1 per cent in 2014-15 from per cent in 2011-12. However, share of both the 38.7 per cent in 2011-12. The primary sector has primary and secondary sectors have reported a shown a marginal increase in its contribution to 33.6 decline.per cent in 2014-15 from 33 per cent in 2011-12. However, the share of secondary sectors has witnessed a decline during the period.

Chart 15 : GSDP Size and Growth Rate








HIMACHAL PRADESH JAMMU & KASHMIR

The GSDP size of Himachal Pradesh grew at a CAGR Known as 'Paradise on Earth', the GSDP of Jammu & of 7.0 per cent (FY 12 to FY 15) to Rs 890 billion in Kashmir increased at a CAGR of 5.2 per cent (FY12 to 2014-15, as against Rs 727 billion in 2011-12. The key FY16) to Rs 959 billion in 2015-16 as against Rs 782 sectors like primary, secondary and tertiary, grew at billion in 2011-12. The corresponding growth rates of 3.7 per cent, 6.7 per cent and 8.9 per cent primary, secondary and tertiary sectors were 2 per respectively. cent, 2.3 per cent and 6.8 per cent respectively.

The contribution of tertiary sector has increased to The contribution of tertiary sector in the GSVA of 58.8 per cent in 2015-16 from 54.4 per cent in 2011-Himachal Pradesh increased to 41.1 per cent in 12. On the other hand, the primary and the 2014-15 as against 39 per cent in 2011-12. The share secondary sector have witnessed a decline in their of manufacturing sector also increased marginally to share.26.3 per cent.

Chart 12 : Sectoral Composition of GSVA (in %)












The Northern Region accounts for around 31 per population (67.2 per cent) in the region as well as the cent of India’s population. Uttar Pradesh is the most highest effective literacy rate (86.2 per cent). populous state of India having population of 200 Himachal Pradesh has the highest sex ratio (972) in million, which accounts for 16.5 per cent of country’s Northern Region closely followed by Uttarakhand total population. (963), which is above the national average (940). In

most of the Northern States, the proportion of Delhi is the most densely populated state in the working age population is higher than that of the region. In addition, it also has the highest working age national average.

Table 1: Northern Region Demographic Profile

Note: Working Age Population is for population between 15-59 years, Effective Literacy Rate is for population of 7+ years, Sex Ratio is females per 1000 malesSource: Census 2011

According to the Report on Employment- prevailing in rural areas than all India average (51) per Unemployment Survey 2015-16, Delhi (33), 1,000 persons for the same age category. As far as Chandigarh (34) and Haryana (47) have a lower total the urban unemployment rate is concerned, four unemployment rate per 1,000 population than the all states, Chandigarh (34), Delhi (33), Himachal Pradesh India average (50) for people aged 15 years and (23), Uttarakahnd (32) and Jammu & Kashmir (36) has above. Similarly Delhi (45), Haryana (43) and lower unemployment rate than the all India average Chandigarh (49) have a lower unemployment rate (49) per 1,000 population aged 15 years and above.

DEMOGRAPHIC PROFILE

per cent)per cent)

UTTARAKHAND UTTAR PRADESH

The GSDP of Uttarakhand increased to Rs 1,530 Uttar Pradesh is the most populous state of the billion in 2015-16 from Rs 1,155 billion in 2011-12. country. The GSDP size of the state increased to Rs The corresponding CAGR growth during this period 9,147 billion in 2015-16 as against Rs 7,240 billion in was 7.3 per cent. Further, primary, secondary and 2011-12, growing at a CAGR of 6 per cent (FY 12 to tertiary sectors grew at 2 per cent, 6.6 per cent and FY16). The corresponding growth rates of primary, 9.4 per cent respectively. secondary and tertiary sectors were 2 per cent, 5.6

per cent and 7.8 per cent respectively.

The contribution of tertiary sector in Uttarakhand's The contribution of tertiary sector in the GSVA of GSVA has increased to 37.2 per cent in 2015-16 from Uttar Pradesh has increased to 49.3 per cent in 2015-34 per cent in 2011-12. The share of manufacturing 16 from 45.5 per cent in 2011-12.sector in state GSVA in 2015-16 has been very

significant at 38.3 per cent.













The Northern Region accounts for around 31 per population (67.2 per cent) in the region as well as the cent of India’s population. Uttar Pradesh is the most highest effective literacy rate (86.2 per cent). populous state of India having population of 200 Himachal Pradesh has the highest sex ratio (972) in million, which accounts for 16.5 per cent of country’s Northern Region closely followed by Uttarakhand total population. (963), which is above the national average (940). In

most of the Northern States, the proportion of Delhi is the most densely populated state in the working age population is higher than that of the region. In addition, it also has the highest working age national average.

Table 1: Northern Region Demographic Profile

Note: Working Age Population is for population between 15-59 years, Effective Literacy Rate is for population of 7+ years, Sex Ratio is females per 1000 malesSource: Census 2011

According to the Report on Employment- prevailing in rural areas than all India average (51) per Unemployment Survey 2015-16, Delhi (33), 1,000 persons for the same age category. As far as Chandigarh (34) and Haryana (47) have a lower total the urban unemployment rate is concerned, four unemployment rate per 1,000 population than the all states, Chandigarh (34), Delhi (33), Himachal Pradesh India average (50) for people aged 15 years and (23), Uttarakahnd (32) and Jammu & Kashmir (36) has above. Similarly Delhi (45), Haryana (43) and lower unemployment rate than the all India average Chandigarh (49) have a lower unemployment rate (49) per 1,000 population aged 15 years and above.

DEMOGRAPHIC PROFILE

per cent)per cent)

UTTARAKHAND UTTAR PRADESH

The GSDP of Uttarakhand increased to Rs 1,530 Uttar Pradesh is the most populous state of the billion in 2015-16 from Rs 1,155 billion in 2011-12. country. The GSDP size of the state increased to Rs The corresponding CAGR growth during this period 9,147 billion in 2015-16 as against Rs 7,240 billion in was 7.3 per cent. Further, primary, secondary and 2011-12, growing at a CAGR of 6 per cent (FY 12 to tertiary sectors grew at 2 per cent, 6.6 per cent and FY16). The corresponding growth rates of primary, 9.4 per cent respectively. secondary and tertiary sectors were 2 per cent, 5.6

per cent and 7.8 per cent respectively.

The contribution of tertiary sector in Uttarakhand's The contribution of tertiary sector in the GSVA of GSVA has increased to 37.2 per cent in 2015-16 from Uttar Pradesh has increased to 49.3 per cent in 2015-34 per cent in 2011-12. The share of manufacturing 16 from 45.5 per cent in 2011-12.sector in state GSVA in 2015-16 has been very

significant at 38.3 per cent.













Ludhiana, Jaipur, Udaipur and Lucknow have been Kanpur, Kota, Jalandhar and Varanasi have made into selected by the Union Urban Development Ministry to the "Smart Cities Challenge".This is expected to be a be developed as Smart Cities. In the third round of game changer towards promoting sustainable urban selection, Northern Cities like Amritsar, Agra, Ajmer, development in the region.

Table 3: Key Indicators for Infrastructure

Note: NA- Not applicable

3 4 Infrastructure Statistics 2014 NHAI 5 6 7 8 PIB, March 2016 TRAI, May 2017 DMICDC DFCCIL

Table 2: Unemployment Rate (per 1,000) for Persons Aged 15 Years & Above

Source: Report on Employment-Unemployment Survey 2015 – 16, Ministry of Labour& Employment

A robust and well developed infrastructure is DMIC is critical for the region as more than half (58.5 ardently important factor influencing the growth of per cent) of the project influence area falls in the Country's or state's economy. It is interesting to note region. A major part of the area under Project that states have been focusing on development of Influence of DMIC falls in Rajasthan (1,98,849 sq kms, infrastructure for a holistic growth and development 45.6 per cent) and around 567 kms (37.7 per cent) of of their state. Western DFC would pass through it. On the other

hand, more than half of Eastern DFC would be The states in the Northern Region have sound running through Uttar Pradesh i.e. 1,058 kms (57 per infrastructure base in terms of power availability, cent).road network, rail & air connectivity, tele-communication network etc. Though the region is Delhi has the highest road density per thousand sq land locked, but the two flagship projects – Delhi kms (20,709) in the Northern Region, closely Mumbai Industrial Corridor (DMIC) and Eastern & followed by Chandigarh at 16,912. Incidentally, Delhi Western Dedicated Freight Corridors (DFCs) also has the highest teledensity in the region with a connecting the region to the ports of Eastern & strong telecommunication network. Himachal Western India are expected to overcome this hurdle. Pradesh has the highest road density per thousand These envisaged mega projects will connect the population (7.3). region to the ports, ensuring a ready market for the

The Northern Region cities of Chandigarh, New Delhi goods manufactured. Municipal Council (NDMC), Faridabad, Dharamshala,

INFRASTRUCTURE PROFILE

26





Ludhiana, Jaipur, Udaipur and Lucknow have been Kanpur, Kota, Jalandhar and Varanasi have made into selected by the Union Urban Development Ministry to the "Smart Cities Challenge".This is expected to be a be developed as Smart Cities. In the third round of game changer towards promoting sustainable urban selection, Northern Cities like Amritsar, Agra, Ajmer, development in the region.

Table 3: Key Indicators for Infrastructure

Note: NA- Not applicable

3 4 Infrastructure Statistics 2014 NHAI 5 6 7 8 PIB, March 2016 TRAI, May 2017 DMICDC DFCCIL

Table 2: Unemployment Rate (per 1,000) for Persons Aged 15 Years & Above

Source: Report on Employment-Unemployment Survey 2015 – 16, Ministry of Labour& Employment

A robust and well developed infrastructure is DMIC is critical for the region as more than half (58.5 ardently important factor influencing the growth of per cent) of the project influence area falls in the Country's or state's economy. It is interesting to note region. A major part of the area under Project that states have been focusing on development of Influence of DMIC falls in Rajasthan (1,98,849 sq kms, infrastructure for a holistic growth and development 45.6 per cent) and around 567 kms (37.7 per cent) of of their state. Western DFC would pass through it. On the other

hand, more than half of Eastern DFC would be The states in the Northern Region have sound running through Uttar Pradesh i.e. 1,058 kms (57 per infrastructure base in terms of power availability, cent).road network, rail & air connectivity, tele-communication network etc. Though the region is Delhi has the highest road density per thousand sq land locked, but the two flagship projects – Delhi kms (20,709) in the Northern Region, closely Mumbai Industrial Corridor (DMIC) and Eastern & followed by Chandigarh at 16,912. Incidentally, Delhi Western Dedicated Freight Corridors (DFCs) also has the highest teledensity in the region with a connecting the region to the ports of Eastern & strong telecommunication network. Himachal Western India are expected to overcome this hurdle. Pradesh has the highest road density per thousand These envisaged mega projects will connect the population (7.3). region to the ports, ensuring a ready market for the

The Northern Region cities of Chandigarh, New Delhi goods manufactured. Municipal Council (NDMC), Faridabad, Dharamshala,

INFRASTRUCTURE PROFILE

26





SECTION 2: INDUSTRIAL INPUTS IN THE NORTHERN REGION

The development of sound industrial base in a state is Northern Region with a large population base and directly linked to the availability of the industrial natural resource availability has been the prime inputs creating value, minimizing costs, and destination for investments for the domestic and increasing operational stability. Availability of land, international investors. This section highlights key power, water and labour at competitive rates and on points regarding the attractiveness of the Northern a regular basis as per the need is critical States in terms of industrial inputs.considerations while investing in a state. The

Chart 23: State-wise Distribution of Approved SEZ (as on 07.09.2017)

Source: SEZ India website

Availability of land at competitive rate for the industry and sectoral clusters with best-in-class infrastructure is a crucial aspect impacting the flow of investments to promote industrial activity in a planned manner.in a state. Taking this forward, the state governments

State-wise distribution of approved SEZsof the Region, have developed, and are developing land bank after their due feasibility is established, With a view to overcome the shortcomings which can be offered to the investors. A number of experienced on account of the multiplicity of State Governments are also developing Special controls and clearances; absence of requisite Economic Zones (SEZs) and providing incentives and infrastructure and with a view to attract larger foreign facilities to attract potential investors. Further, it is investments in India, the Special Economic Zones interesting to note that states in the region are also have been set up across the Region.coming up with new and dedicated industrial areas

Land

According to ASI data for 2014-15 (Provisional), the capital stands at 39 per cent, 24 and 19 per cent contribution of Northern Region in the country's respectively.value of output, number of factories and invested

INDUSTRIAL PROFILE

Table 4: Industrial Indicators (Value figures in Rs billion& others in numbers)

Note: Figures in brackets indicate share in IndiaSource: ASI 2014-15 (Provisional)





SECTION 2: INDUSTRIAL INPUTS IN THE NORTHERN REGION

The development of sound industrial base in a state is Northern Region with a large population base and directly linked to the availability of the industrial natural resource availability has been the prime inputs creating value, minimizing costs, and destination for investments for the domestic and increasing operational stability. Availability of land, international investors. This section highlights key power, water and labour at competitive rates and on points regarding the attractiveness of the Northern a regular basis as per the need is critical States in terms of industrial inputs.considerations while investing in a state. The

Chart 23: State-wise Distribution of Approved SEZ (as on 07.09.2017)

Source: SEZ India website

Availability of land at competitive rate for the industry and sectoral clusters with best-in-class infrastructure is a crucial aspect impacting the flow of investments to promote industrial activity in a planned manner.in a state. Taking this forward, the state governments

State-wise distribution of approved SEZsof the Region, have developed, and are developing land bank after their due feasibility is established, With a view to overcome the shortcomings which can be offered to the investors. A number of experienced on account of the multiplicity of State Governments are also developing Special controls and clearances; absence of requisite Economic Zones (SEZs) and providing incentives and infrastructure and with a view to attract larger foreign facilities to attract potential investors. Further, it is investments in India, the Special Economic Zones interesting to note that states in the region are also have been set up across the Region.coming up with new and dedicated industrial areas

Land

According to ASI data for 2014-15 (Provisional), the capital stands at 39 per cent, 24 and 19 per cent contribution of Northern Region in the country's respectively.value of output, number of factories and invested

INDUSTRIAL PROFILE

Table 4: Industrial Indicators (Value figures in Rs billion& others in numbers)

Note: Figures in brackets indicate share in IndiaSource: ASI 2014-15 (Provisional)





The Himachal Pradesh State Industrial Development the development of the industrial infrastructure in Corporation (HPSIDC) is the nodal agency engaged in the State.

HIMACHAL PRADESH

Table 6: Details of Land Bank with HPSIDC

519

Source: HSIIDC

Source: HPSIDC

The Northern Region has network of well-established highest area covered under SEZ at 329.3 hectare, SEZs in the states, which houses a large number of 416.6 hectare and 619 hectare respectively. Also, in manufacturing and service units. The Northern the Region, Uttar Pradesh (12), followed by Haryana Region has 52 notified SEZs, 66 SEZs with a formal (7) have the highest number of operational SEZs in

9approval and 28 operational SEZs. In the Region, the Region .Haryana, Uttar Pradesh and Rajasthan have the

Land availability across the states

Haryana State Industrial & Infrastructure accelerating the pace of industrialization in the State Development Corporation Ltd (HSIIDC) has been through development of industrial infrastructure in incorporated as the nodal agency to develop the State and providing a wide spectrum of services. industrial infrastructure in the State of Haryana under As on 15.09.2017, HSIIDC has a total area of 21,822 the aegis of Department of Industries and acres under Land Bank which has been developed/ Commerce, Government of Haryana. HSIIDC has or under development. been set up as a catalyst for promoting and

HARYANA

Table 5: Details of some of the Land Bank Developed/ Under Development

9 SEZ India

11,000





The Himachal Pradesh State Industrial Development the development of the industrial infrastructure in Corporation (HPSIDC) is the nodal agency engaged in the State.

HIMACHAL PRADESH

Table 6: Details of Land Bank with HPSIDC

519

Source: HSIIDC

Source: HPSIDC

The Northern Region has network of well-established highest area covered under SEZ at 329.3 hectare, SEZs in the states, which houses a large number of 416.6 hectare and 619 hectare respectively. Also, in manufacturing and service units. The Northern the Region, Uttar Pradesh (12), followed by Haryana Region has 52 notified SEZs, 66 SEZs with a formal (7) have the highest number of operational SEZs in

9approval and 28 operational SEZs. In the Region, the Region .Haryana, Uttar Pradesh and Rajasthan have the

Land availability across the states

Haryana State Industrial & Infrastructure accelerating the pace of industrialization in the State Development Corporation Ltd (HSIIDC) has been through development of industrial infrastructure in incorporated as the nodal agency to develop the State and providing a wide spectrum of services. industrial infrastructure in the State of Haryana under As on 15.09.2017, HSIIDC has a total area of 21,822 the aegis of Department of Industries and acres under Land Bank which has been developed/ Commerce, Government of Haryana. HSIIDC has or under development. been set up as a catalyst for promoting and

HARYANA

Table 5: Details of some of the Land Bank Developed/ Under Development

9 SEZ India

11,000





Table 9: Premium Rates for Land in Industrial Estates

Source: Industrial Policy, 2016 by Department of Industries and Commerce, Government of Jammu and KashmirNote: Zone A- Srinagar, Budgam, Pulwama, Gandarbal, Baramulla and Anantnag in Kashmir region; Jammu, Udhampur, Samba, Kathua in Jammu RegionZone B: Kulgam, Shopian, Bandipora&Kupwara in Kashmir Region; Reasi, Ramban, Doda, Kishtwar, Rajouri and poonch in Jammu region; Leh and Kargil in Ladakh region

Rajasthan, geographically the largest state of India, Ÿ Japanese Industrial Zone at Neemrana (Alwar) offers land in plenty and at competitive prices. spread in 1,167 acres where Japanese majors Rajasthan Industrial Development and Investment such as Nissin, Mitsui, Nippon, Daikin, TPR Auto, Corporation Ltd. (RIICO)ensures top-class Mitsubishi, Dykie Colour, Toyota Kirloskar Motor infrastructure and other related support for have been allotted land and a number of units are establishment of new enterprises. To catalyse already operational . Another Japanese industrialisation, the Corporation has developed 327 Investment Zone over 500 acres at Ghiloth is being industrial areas acquiring 74,228 acre land developedthroughout the State. The efforts of the Government

Ÿ Korean Industrial Zone: An exclusive Korean of Rajasthan to support industrialisation are simply Industrial Zone spread in approximately 263 acres 10visible with the following :of area is being developed at Ghiloth near

Ÿ Special Purpose Industrial Parks: Agro Food Parks Neemrana, Rajasthan

(Kota, Jodhpur, Sri Ganganagar and Alwar), Stone Ÿ Other upcoming Industrial Areas at Ghiloth,

Parks (Bharatpur& Jodhpur), Leather Park (Jaipur), Khushkhera Extn., Karoli (TapukaraExtn.),

IT Parks (Jaipur, Jodhpur and Alwar), Bio-tech Park Prahaladpura (Jaipur) etc

(Jaipur), Export Promotion Industrial Parks (Jaipur, Alwar and Jodhpur)

RAJASTHAN

10 Resurgent Rajasthan website

Table 7: List of Land Transferred in the name of Industries department (up to 31-03-2016)

Source: HPSIDC

In Jammu & Kashmir, land is allocated by the State being set up in both Jammu and Kashmir separately, Industrial Development Corporation (SIDCO). J&K by way of acquiring land and development of SIDCO is the nodal agency for promotion & industrial infrastructure. Further, J&K SIDCO is also development of medium and large scale Industries in developing product specific industrial estates to fulfil the state, established with an objective to act as a the functional needs of certain industries like catalyst to inspire and accelerate the industrial Textiles, Electronics and Software development etc. development in the State. In order to catalyse

The Corporation is developing new Industrial industrialisation in the state, Industrial Growth sites/growth centres where a variety of industries Centres and Export Promotion Industrial Parks are have come up.

JAMMU & KASHMIR

Table 8: Industrial Estates

As per the Industrial Policy, 2016 by Department of be allotted in the industrial estates Zone A and Zone B Industries and Commerce, Government of Jammu subject to periodical review: and Kashmir, the premium rates per acre for land to

Source: Jammu & Kashmir Industrial Policy, 2016





Table 9: Premium Rates for Land in Industrial Estates

Source: Industrial Policy, 2016 by Department of Industries and Commerce, Government of Jammu and KashmirNote: Zone A- Srinagar, Budgam, Pulwama, Gandarbal, Baramulla and Anantnag in Kashmir region; Jammu, Udhampur, Samba, Kathua in Jammu RegionZone B: Kulgam, Shopian, Bandipora&Kupwara in Kashmir Region; Reasi, Ramban, Doda, Kishtwar, Rajouri and poonch in Jammu region; Leh and Kargil in Ladakh region

Rajasthan, geographically the largest state of India, Ÿ Japanese Industrial Zone at Neemrana (Alwar) offers land in plenty and at competitive prices. spread in 1,167 acres where Japanese majors Rajasthan Industrial Development and Investment such as Nissin, Mitsui, Nippon, Daikin, TPR Auto, Corporation Ltd. (RIICO)ensures top-class Mitsubishi, Dykie Colour, Toyota Kirloskar Motor infrastructure and other related support for have been allotted land and a number of units are establishment of new enterprises. To catalyse already operational . Another Japanese industrialisation, the Corporation has developed 327 Investment Zone over 500 acres at Ghiloth is being industrial areas acquiring 74,228 acre land developedthroughout the State. The efforts of the Government

Ÿ Korean Industrial Zone: An exclusive Korean of Rajasthan to support industrialisation are simply Industrial Zone spread in approximately 263 acres 10visible with the following :of area is being developed at Ghiloth near

Ÿ Special Purpose Industrial Parks: Agro Food Parks Neemrana, Rajasthan

(Kota, Jodhpur, Sri Ganganagar and Alwar), Stone Ÿ Other upcoming Industrial Areas at Ghiloth,

Parks (Bharatpur& Jodhpur), Leather Park (Jaipur), Khushkhera Extn., Karoli (TapukaraExtn.),

IT Parks (Jaipur, Jodhpur and Alwar), Bio-tech Park Prahaladpura (Jaipur) etc

(Jaipur), Export Promotion Industrial Parks (Jaipur, Alwar and Jodhpur)

RAJASTHAN

10 Resurgent Rajasthan website

Table 7: List of Land Transferred in the name of Industries department (up to 31-03-2016)

Source: HPSIDC

In Jammu & Kashmir, land is allocated by the State being set up in both Jammu and Kashmir separately, Industrial Development Corporation (SIDCO). J&K by way of acquiring land and development of SIDCO is the nodal agency for promotion & industrial infrastructure. Further, J&K SIDCO is also development of medium and large scale Industries in developing product specific industrial estates to fulfil the state, established with an objective to act as a the functional needs of certain industries like catalyst to inspire and accelerate the industrial Textiles, Electronics and Software development etc. development in the State. In order to catalyse

The Corporation is developing new Industrial industrialisation in the state, Industrial Growth sites/growth centres where a variety of industries Centres and Export Promotion Industrial Parks are have come up.

JAMMU & KASHMIR

Table 8: Industrial Estates

As per the Industrial Policy, 2016 by Department of be allotted in the industrial estates Zone A and Zone B Industries and Commerce, Government of Jammu subject to periodical review: and Kashmir, the premium rates per acre for land to

Source: Jammu & Kashmir Industrial Policy, 2016





State Industrial and Infrastructure Development development in the State. SIIDCUL has been working Corporation of Uttarakhand Ltd (SIIDCUL) has towards ensuring fast- track clearances, through a been incorporated by the Government of dedicated single window system to enable the Uttarakhand in order to promote Industrial shortest lead time in setting up industrial projects.

UTTARAKHAND

Table 12: The Major Infrastructure being developed by SIIDCUL

3 million

3 million

Source: SIIDCUL

Uttar Pradesh, geographically one of the largest industrial areas on approximately 43,789 acres of 11state of India, offers land in plenty and at competitive land across Uttar Pradesh . UPSIDC is the agency

prices. The Government of Uttar Pradesh has a land accountable for an overall development of industrial bank available for the investors in the state. Uttar areas in the state, ascertaining and stimulating Pradesh State Industrial Development infrastructure related specific projects, acquisition of Corporation (UPSIDC) is the nodal agency for land on demand for large projects, responsible for developing industrial infrastructure in the state. As development of integrated infrastructure industrial on date, UPSIDC has developed a record 154 townships amongst others.

UTTAR PRADESH

Table 10: Details of some of the Upcoming Industrial Area and Raw Land Bank in Rajasthan

113.7

Ajmer (3 Industrial Areas)

Banswara (3 Industrial Areas)Barmer (3 Industrial Areas)

Jaipur (3 Industrial Areas)

Jodhpur (4 Industrial Areas)

Tonk (1 Industrial Areas)

Source: RIICO

11 UPSIDC

Table 11: Major Infrastructure being developed by UPSIDC includes

Source: UPSIDC GIS





State Industrial and Infrastructure Development development in the State. SIIDCUL has been working Corporation of Uttarakhand Ltd (SIIDCUL) has towards ensuring fast- track clearances, through a been incorporated by the Government of dedicated single window system to enable the Uttarakhand in order to promote Industrial shortest lead time in setting up industrial projects.

UTTARAKHAND

Table 12: The Major Infrastructure being developed by SIIDCUL

3 million

3 million

Source: SIIDCUL

Uttar Pradesh, geographically one of the largest industrial areas on approximately 43,789 acres of 11state of India, offers land in plenty and at competitive land across Uttar Pradesh . UPSIDC is the agency

prices. The Government of Uttar Pradesh has a land accountable for an overall development of industrial bank available for the investors in the state. Uttar areas in the state, ascertaining and stimulating Pradesh State Industrial Development infrastructure related specific projects, acquisition of Corporation (UPSIDC) is the nodal agency for land on demand for large projects, responsible for developing industrial infrastructure in the state. As development of integrated infrastructure industrial on date, UPSIDC has developed a record 154 townships amongst others.

UTTAR PRADESH

Table 10: Details of some of the Upcoming Industrial Area and Raw Land Bank in Rajasthan

113.7

Ajmer (3 Industrial Areas)

Banswara (3 Industrial Areas)Barmer (3 Industrial Areas)

Jaipur (3 Industrial Areas)

Jodhpur (4 Industrial Areas)

Tonk (1 Industrial Areas)

Source: RIICO

11 UPSIDC

Table 11: Major Infrastructure being developed by UPSIDC includes

Source: UPSIDC GIS





Source: Energy Statistics, 2017 MoSPI

Chart 24: Renewable Energy Potential of Northern Region (FY 2016-17)

Table 13: Renewable Energy: Data on Generation for March 2017 and the period April 2016 - March 2017 (in MU)

Per Cent

The cumulative renewable energy generation in the generation of renewable energy from just 3 MU in FY Northern Region has grown by around 14 per cent 2016 to 13 MU in FY 2017. Punjab too has significantly from FY 2016 to FY 2017 and accounts for ~22 per improved its generation to the tune of around 46 per cent of India's total renewable energy generation in cent. FY2017.Chandigarh saw a manifold increase in the

Power is a critical input factor determining economic energy based power generation is catching up given growth of a region. Northern Region is predominated the huge potential, which exists in the region. by thermal power generation. However, renewable

POWER

Chart 23: Energy Mix: India vs Northern Region

Source: CEA Report FY 2016-17

As per Centre for Energy Agency (CEA) data for through solar, 60 GW through wind energy, 10 GW FY2016-17, comparing the energy mix of India vs. the through small hydro power, and 5 GW through Northern Region; we see that similar to India, the biomass-based power projects. Northern Region is predominantly dependent on

All the 29 States of India are working relentlessly to thermal power which constitutes about 64 per cent make this a success and some major milestones have of the energy mix. This is followed closely by already been achieved. The Northern States in renewable which is fast catching up and it specific already have and in the future will play a contributes to about 18 per cent of the India's RE pivotal role in achieving the renewable energy target installed capacity and 13 per cent in the Northern set out by the Government.India energy mix.

As per the Energy Statistics, 2017, Rajasthan has the Renewable energy accounts for ~16% of India's total highest Renewable energy potential at 167 GW in installed power generation capacity. The nation has India, followed shortly by Jammu & Kashmir at 118 the fourth largest installed capacity of wind power GW. In addition, Uttarakhand is being developed as and third largest installed capacity of concentrated an 'energy state' to tap the hydropower electric solar power. potential of over 25,000 MW.

The Government of India aims to reach a renewable energy capacity of 175 GW by 2022 with 100 GW





Source: Energy Statistics, 2017 MoSPI

Chart 24: Renewable Energy Potential of Northern Region (FY 2016-17)

Table 13: Renewable Energy: Data on Generation for March 2017 and the period April 2016 - March 2017 (in MU)

Per Cent

The cumulative renewable energy generation in the generation of renewable energy from just 3 MU in FY Northern Region has grown by around 14 per cent 2016 to 13 MU in FY 2017. Punjab too has significantly from FY 2016 to FY 2017 and accounts for ~22 per improved its generation to the tune of around 46 per cent of India's total renewable energy generation in cent. FY2017.Chandigarh saw a manifold increase in the

Power is a critical input factor determining economic energy based power generation is catching up given growth of a region. Northern Region is predominated the huge potential, which exists in the region. by thermal power generation. However, renewable

POWER

Chart 23: Energy Mix: India vs Northern Region

Source: CEA Report FY 2016-17

As per Centre for Energy Agency (CEA) data for through solar, 60 GW through wind energy, 10 GW FY2016-17, comparing the energy mix of India vs. the through small hydro power, and 5 GW through Northern Region; we see that similar to India, the biomass-based power projects. Northern Region is predominantly dependent on

All the 29 States of India are working relentlessly to thermal power which constitutes about 64 per cent make this a success and some major milestones have of the energy mix. This is followed closely by already been achieved. The Northern States in renewable which is fast catching up and it specific already have and in the future will play a contributes to about 18 per cent of the India's RE pivotal role in achieving the renewable energy target installed capacity and 13 per cent in the Northern set out by the Government.India energy mix.

As per the Energy Statistics, 2017, Rajasthan has the Renewable energy accounts for ~16% of India's total highest Renewable energy potential at 167 GW in installed power generation capacity. The nation has India, followed shortly by Jammu & Kashmir at 118 the fourth largest installed capacity of wind power GW. In addition, Uttarakhand is being developed as and third largest installed capacity of concentrated an 'energy state' to tap the hydropower electric solar power. potential of over 25,000 MW.

The Government of India aims to reach a renewable energy capacity of 175 GW by 2022 with 100 GW





However, the trend for Electricity Duty (ED) in the industrial tariff but also maintains the second lowest States of the Northern Region is different. The states ED of Rs 25 per month after Haryana, with ED at Rs 15 of Himachal Pradesh and Jammu & Kashmir with low per month. Apart from the Electricity Duty, the states industrial tariffs levy a heavy ED of Rs 71 and Rs 77 of Haryana, Himachal Pradesh, Jammu & Kashmir, per month respectively while higher tariff state Punjab, Rajasthan, Uttar Pradesh and Uttarakhand Haryana has an ED of Rs 15 per month. It is only the also levy Open Access charges to its industrial power state of Uttarakhand which not only extends a lower consumers.

Table 15: State-Wise Increase in Industrial Tariff

Source: State SERC and CII analysisNote: Industrial Tariff has been averaged out for analysis

Analysing further, it is evident that timely tariff Given that the fuel and power purchase costs cannot revisions has been the top agenda for the State be controlled and accounts for nearly 80 per cent of Governments of Northern Region. While Delhi and the cost of supply for any Discom, reducing Haryana witnessed more than 40 per cent hike in transmission losses from current levels to 15 per cent industrial tariff from 2010 to 2015, Rajasthan has had by 2019, improving collection and billing efficiency, a marginal increase in power tariff in the same period. considerably reducing energy theft, and reducing This possibly could be because of already high tariffs the gap between ACS and ARR are crucial. UDAY prevailing in the state even in 2010. The hill states of underlines the need for regular tariff revisions and Himachal Pradesh, Uttarakhand and Jammu & keeping power prices affordable. Kashmir have also shown a considerable increase in industrial tariff somewhere between 25-30 per cent.

Water

Evaluation by Central Water Commission shows that topographic, hydrological and other constraints, is the average annual water availability in the country is about 1,123 BCM comprising 690 BCM of surface 1,869 Billion Cubic Meters (BCM). However, the water water and 433 BCM of replenishable ground water.resources that could be utilized, considering

Rooftop solar has also been catching up in the Power deficit for the FY 2016-17 for the Northern region. Punjab has already built the largest single Region is high in comparison to the India average, but Rooftop Solar Power Plant of 11.5 MW at Dera Baba given the huge potential of the states along with Jaimal Singh (Radha Soami Sect). All the states have attractive renewable energy policies, the power come up with attractive net-metering policies to scenario of this region is expected to improve in the promote installation of rooftop solar in all coming years. Government and private buildings.

Table 14: Surplus/Deficit Power for Northern Region

Source: CEA

Power tariff setting is a primary instrument of the country. While the more industrialised states of economic regulation and it provides signals to Haryana, Punjab, Rajasthan and Uttar Pradesh reflect determine the demand supply dynamics of a state. a higher average industrial tariff of Rs 6/kWh, Rs Therefore, a considerable portion of every State 6/kWh, Rs 6/kWh and Rs 7/kWh respectively, the less Government's efforts is spent on rationalising tariffs. industrialised states, providing power at lower tariffs.

For example the states of Jammu & Kashmir, The Northern States power tariff reflects the Uttarakhand and UT of Chandigarh extend an commitment of the State Government towards average industrial tariff of Rs 4.5/kWh, Rs 4/kWh and making this region as one of the preferred & Rs 4.5/kWh respectively. attractive investment and business destinations in

POWER TARIFFS





However, the trend for Electricity Duty (ED) in the industrial tariff but also maintains the second lowest States of the Northern Region is different. The states ED of Rs 25 per month after Haryana, with ED at Rs 15 of Himachal Pradesh and Jammu & Kashmir with low per month. Apart from the Electricity Duty, the states industrial tariffs levy a heavy ED of Rs 71 and Rs 77 of Haryana, Himachal Pradesh, Jammu & Kashmir, per month respectively while higher tariff state Punjab, Rajasthan, Uttar Pradesh and Uttarakhand Haryana has an ED of Rs 15 per month. It is only the also levy Open Access charges to its industrial power state of Uttarakhand which not only extends a lower consumers.

Table 15: State-Wise Increase in Industrial Tariff

Source: State SERC and CII analysisNote: Industrial Tariff has been averaged out for analysis

Analysing further, it is evident that timely tariff Given that the fuel and power purchase costs cannot revisions has been the top agenda for the State be controlled and accounts for nearly 80 per cent of Governments of Northern Region. While Delhi and the cost of supply for any Discom, reducing Haryana witnessed more than 40 per cent hike in transmission losses from current levels to 15 per cent industrial tariff from 2010 to 2015, Rajasthan has had by 2019, improving collection and billing efficiency, a marginal increase in power tariff in the same period. considerably reducing energy theft, and reducing This possibly could be because of already high tariffs the gap between ACS and ARR are crucial. UDAY prevailing in the state even in 2010. The hill states of underlines the need for regular tariff revisions and Himachal Pradesh, Uttarakhand and Jammu & keeping power prices affordable. Kashmir have also shown a considerable increase in industrial tariff somewhere between 25-30 per cent.

Water

Evaluation by Central Water Commission shows that topographic, hydrological and other constraints, is the average annual water availability in the country is about 1,123 BCM comprising 690 BCM of surface 1,869 Billion Cubic Meters (BCM). However, the water water and 433 BCM of replenishable ground water.resources that could be utilized, considering

Rooftop solar has also been catching up in the Power deficit for the FY 2016-17 for the Northern region. Punjab has already built the largest single Region is high in comparison to the India average, but Rooftop Solar Power Plant of 11.5 MW at Dera Baba given the huge potential of the states along with Jaimal Singh (Radha Soami Sect). All the states have attractive renewable energy policies, the power come up with attractive net-metering policies to scenario of this region is expected to improve in the promote installation of rooftop solar in all coming years. Government and private buildings.

Table 14: Surplus/Deficit Power for Northern Region

Source: CEA

Power tariff setting is a primary instrument of the country. While the more industrialised states of economic regulation and it provides signals to Haryana, Punjab, Rajasthan and Uttar Pradesh reflect determine the demand supply dynamics of a state. a higher average industrial tariff of Rs 6/kWh, Rs Therefore, a considerable portion of every State 6/kWh, Rs 6/kWh and Rs 7/kWh respectively, the less Government's efforts is spent on rationalising tariffs. industrialised states, providing power at lower tariffs.

For example the states of Jammu & Kashmir, The Northern States power tariff reflects the Uttarakhand and UT of Chandigarh extend an commitment of the State Government towards average industrial tariff of Rs 4.5/kWh, Rs 4/kWh and making this region as one of the preferred & Rs 4.5/kWh respectively. attractive investment and business destinations in

POWER TARIFFS





SECTION 3: STATE INDUSTRIAL PROMOTION POLICIES

Creating a conducive environment for investments in restructuring institutions, and presenting a holistic the states has been actively pursued by all the states strategy for industrial growth of the state. The State of the Region. The industrial and investment Government through these policies have not only promotion policies notified by the different state been focusing on ease of doing business, but also governments in the Region have been emphasizing enhancing competitiveness of the industry by on attracting new investments in infrastructure reducing the cost of doing business. In addition, to a development and to increase competitiveness of general package of financial incentives, sector-existing units. specific policies have been formulated to promote

investments. This section of the report dwells on the Many State Governments have systematically key industrial polices and incentives offered by the created a policy framework, ushering in bold reforms, State Government in the Northern Region.

HARYANA

Haryana has a well-established Industrial base across - Electricity Duty Exemption @ 100 per cent key sectors with close to 1,700 large and medium for a period of 5 years in 'B' & 'C' category enterprises. It has also come up with a plethora of blocksinvestment opportunities in the Kundli-Manesar-

- 100 per cent fund refund of stamp duty in 'D' Palwal (KMP) and Delhi Mumbai Industrial Corridor category blocks; 75 per cent in 'C' category (DMIC) zones. The State Government has also blockslaunched the New Enterprise Promotion Policy in

2015 focusing on a dynamic governance system, - 50 per cent exemption towards External wide scale adoption of innovation & technology and Development Charges in 'B', 'C' & 'D' category ski l l development. The key Incentives & blockInfrastructure Schemes are:

Ÿ Large UnitsŸ Mega Projects

- Investment Subsidy on SGST: 75 per cent of - Investment Subsidy on SGST: 75 per cent of SGST net paid for first 7 years, 35 per cent for

SGST net paid for first 5 years, 35 per cent for next three years in 'D' category blocks; 50 next three years in 'D' category blocks; 50 per cent for first 5 years, 25 per cent for next per cent for first 5 years, 25 per cent for next three years in 'C' category blocks from the three years in 'C' category blocks; 30 per date of commencement of commercial cent for first 5 years, 15 per cent for next production with cap of 100 per cent of FCIthree years in 'B' category blocks with cap of

- 75 per cent of SGST net paid in 'D' category 100 per cent of Fixed Capital Investment blocks for 7 years, 50 per cent in 'C' category (FCI)blocks for 5 years on 50 per cent additional

- Employment Generation Subsidy @ Rs investment in plant and machinery for 30,000/- per year for 5 years expansion/ diversification with cap of 100

per cent of FCI on expanded FCI

Table 16: State-wise Ground Water Resources Availability

Source: Central Ground Water Board, Dynamic Ground Water Resources of India, (as on 31st March, 2011)

Legislative protection for workers to provide them progressive state.with minimum wage is the hallmark of any

LABOUR & WAGES

Table 17: Northern Region Minimum Wages (in Rs.) (per month)

Source: Chandigarh Administration – for the period 1-04-2017 to 30-09-2017; Delhi Labour Ministry; Haryana paycheck.in January 1, 2017 to June 30, 2017; Himachal Pradesh notification dated 22-07-2017; Jammu & Kashmir Labour and Employment Department – notification dated 17.1.2017; Punjab labour Department of Labour notification dated 11.10.2017; Rajasthan Department of Labour – Notification dated 07.02.2017; Uttar Pradesh Labour Department – notification dated 14.9.2016; Uttarakhand Department of Labour – as on 9.2.2017Note: For the purpose of calculation of monthly wage rate of Uttarakhand, Jammu& Kashmir and Haryana, daily minimum wage rates have been multiplied by 26 days. For rest of the states, as per notification issued by the respective State Governments.



STATE INDUSTRIAL PROMOTION POLICIES


SECTION 3: STATE INDUSTRIAL PROMOTION POLICIES

Creating a conducive environment for investments in restructuring institutions, and presenting a holistic the states has been actively pursued by all the states strategy for industrial growth of the state. The State of the Region. The industrial and investment Government through these policies have not only promotion policies notified by the different state been focusing on ease of doing business, but also governments in the Region have been emphasizing enhancing competitiveness of the industry by on attracting new investments in infrastructure reducing the cost of doing business. In addition, to a development and to increase competitiveness of general package of financial incentives, sector-existing units. specific policies have been formulated to promote

investments. This section of the report dwells on the Many State Governments have systematically key industrial polices and incentives offered by the created a policy framework, ushering in bold reforms, State Government in the Northern Region.

HARYANA

Haryana has a well-established Industrial base across - Electricity Duty Exemption @ 100 per cent key sectors with close to 1,700 large and medium for a period of 5 years in 'B' & 'C' category enterprises. It has also come up with a plethora of blocksinvestment opportunities in the Kundli-Manesar-

- 100 per cent fund refund of stamp duty in 'D' Palwal (KMP) and Delhi Mumbai Industrial Corridor category blocks; 75 per cent in 'C' category (DMIC) zones. The State Government has also blockslaunched the New Enterprise Promotion Policy in

2015 focusing on a dynamic governance system, - 50 per cent exemption towards External wide scale adoption of innovation & technology and Development Charges in 'B', 'C' & 'D' category ski l l development. The key Incentives & blockInfrastructure Schemes are:

Ÿ Large UnitsŸ Mega Projects

- Investment Subsidy on SGST: 75 per cent of - Investment Subsidy on SGST: 75 per cent of SGST net paid for first 7 years, 35 per cent for

SGST net paid for first 5 years, 35 per cent for next three years in 'D' category blocks; 50 next three years in 'D' category blocks; 50 per cent for first 5 years, 25 per cent for next per cent for first 5 years, 25 per cent for next three years in 'C' category blocks from the three years in 'C' category blocks; 30 per date of commencement of commercial cent for first 5 years, 15 per cent for next production with cap of 100 per cent of FCIthree years in 'B' category blocks with cap of

- 75 per cent of SGST net paid in 'D' category 100 per cent of Fixed Capital Investment blocks for 7 years, 50 per cent in 'C' category (FCI)blocks for 5 years on 50 per cent additional

- Employment Generation Subsidy @ Rs investment in plant and machinery for 30,000/- per year for 5 years expansion/ diversification with cap of 100

per cent of FCI on expanded FCI

Table 16: State-wise Ground Water Resources Availability

Source: Central Ground Water Board, Dynamic Ground Water Resources of India, (as on 31st March, 2011)

Legislative protection for workers to provide them progressive state.with minimum wage is the hallmark of any

LABOUR & WAGES

Table 17: Northern Region Minimum Wages (in Rs.) (per month)

Source: Chandigarh Administration – for the period 1-04-2017 to 30-09-2017; Delhi Labour Ministry; Haryana paycheck.in January 1, 2017 to June 30, 2017; Himachal Pradesh notification dated 22-07-2017; Jammu & Kashmir Labour and Employment Department – notification dated 17.1.2017; Punjab labour Department of Labour notification dated 11.10.2017; Rajasthan Department of Labour – Notification dated 07.02.2017; Uttar Pradesh Labour Department – notification dated 14.9.2016; Uttarakhand Department of Labour – as on 9.2.2017Note: For the purpose of calculation of monthly wage rate of Uttarakhand, Jammu& Kashmir and Haryana, daily minimum wage rates have been multiplied by 26 days. For rest of the states, as per notification issued by the respective State Governments.





- Total exemption from the payment of - Allotment of land/plot/ industrial sheds @50 Electricity Duty for a period of 10 years per cent of the normally applicable premium

- Interest subsidy @5 per cent p.a. on term - Interest subsidy @ 5 per cent p.a. on term loan, with a ceiling of Rs 200,000 p.a. for a loan, with a ceiling of Rs 200,000 p.a. for a period of 3 years period of 3 years

Ÿ Biotechnology related Thrust Enterprise(s):

- Out of turn allotment of land/plot/ industrial sheds

JAMMU & KASHMIR

The New Industrial Policy 2016 aims to attract with maximum limit of Rs 15 million for substantial investments in industry. Creating a single manufacturing unit window platform in order to materialize investments

Ÿ 100 per cent subsidy on the purchase and in the state has been the cornerstone of the new installation of the DG sets from 10KW to 200KW policy. Key features of the Policy: capacity purchased from reputed/ standard

Ÿ Land shall be allotted to the entrepreneurs on company with an upper ceiling limit of Rs 4 first come first serve basis million for Zone A &Rs 4.5 million for Zone B

Ÿ No additional toll tax on the raw materials, fuel Ÿ 50 per cent of the cost of training shall be borne and consumables, procured from outside the by the Government subject to Rs 5,000 per state by the existing or new SSI units trainee and subject to Rs 100,000 per annum for

any unit for a period of five yearsŸ State Capital Investment Subsidy: In Zone A: 30

per cent of the cost of the Plant & Machinery with Ÿ For installation of the latest, online monitoring an upper limit of Rs 6 million for the and high quality pollution control devices, manufacturing unit and 30 per cent of the cost of subsidy on the cost of these devices shall be the Plant & Machinery with an upper limit of Rs 3 available @ 60 per cent of the cost of the device million for Service Sector Unit subject to a max of Rs 5 million

Ÿ For the Prestigious/ Mega Units, the quantum of incentive is 30 per cent of the plant & machinery

PUNJAB

HIMACHAL PRADESH

The State Industrial Policy, 2004 aims to expand the Ÿ Benefit to MSMEs: industrial sector in the state and develop

- Special Investment Subsidy @ 10 per cent on infrastructure with provisions for speedy clearance FCI subject to a maximum of Rs 100,000 of new projects. In the notification dated 12.05.2015, millionthe Government of Himachal Pradesh has further

brought about certain amendments in the said - Interest subsidy @ 5 per cent on term loan Industrial Policy to match with present needs of the availed from the Financial Institution(s) with a industry and further improve the business ceiling of Rs 50,000 p.a. for a period of 3 environment. years

Various incentives offered to attract large scale - 100 per cent subsidy on the carriage and industrial investments. installation cost of the plant and machinery

Special package of incentives aimed at attracting - Reimbursement of cost incurred for new investments shipment of export samples by Micro & Small

EOUs with a ceiling of Rs 15,000/- per Ÿ VAT incentive: Deferment of 100 per cent of VAT

consignment, subject to a maximum Rs for period of 8 years in Category B and 5 years in 50,000/- per enterprise Category A

Thrust Industrial Enterprises: Agro Processing, Ÿ A concessional rate of Electricity Duty will be

Automobile Manufacturing Enterprises, Sericulture charged: Extra High Tension (EHT) category /Handlooms, Electronic Enterprises, Pharma consumers supply voltage (>33 kv) – 15 per cent Products. Incentives to Thrust Industrial Enterprises: ; Large industrial consumer(above 100 KW)

connected load and supply voltage not Ÿ New Thrust Industrial Enterprises located in "B" exceeding 33 KV- 13 per cent and "C" category areas will be eligible for

Ÿ Out of turn preference to sanction power - Out of turn allotment of land/plot/industrial connections to 100 per cent Export Oriented shedsUnits, IT, Bio Technology projects and projects

- Allotment of land/plot/ industrial sheds @50 involving FDIper cent of the normally applicable premium

Ÿ Exemption of 50 per cent of the Stamp Duty on Ÿ Exemption from the payment of State Excise conveyance deed and lease deed

Duty for a period of 7 years to New Thrust Ÿ Relaxation in the Floor Area Ratio (FAR): Minimum Industrial Enterprises set up as MSMEs which are

Plot area for Small industry from 250M^2 to manufacturing wine/cider by using locally 500M^2; for service industry - 501M^2 to produced fruits and located in "B" and "C" areas1000M^2; for medium scale units 1001M^2 to

Ÿ New Thrust Industrial Enterprises based on 5000M^2; for large scale 5000M^2 and above. Horticulture/Vegetable /Maize/ herbal produce The minimum height of the floor of the industrial enterprises and located in 'B' and 'C' category unit shall be 3 metres areas shall be entitled:

The Government of Punjab has recently notified the supported by Sector Specific Strategies for growth. Industrial Policy 2017.The Policy has been The policy gives a great thrust to the development of architected around eight core strategic pillars of MSME sector. The policy also aims at promoting Infrastructure, Power, MSME, Ease of Doing Business, growth of service industries apart from the Startup & Entrepreneurship, Skills, Fiscal & Non- traditional manufacturing industries.Fiscal Incentives and Stakeholder Engagement





- Total exemption from the payment of - Allotment of land/plot/ industrial sheds @50 Electricity Duty for a period of 10 years per cent of the normally applicable premium

- Interest subsidy @5 per cent p.a. on term - Interest subsidy @ 5 per cent p.a. on term loan, with a ceiling of Rs 200,000 p.a. for a loan, with a ceiling of Rs 200,000 p.a. for a period of 3 years period of 3 years

Ÿ Biotechnology related Thrust Enterprise(s):

- Out of turn allotment of land/plot/ industrial sheds

JAMMU & KASHMIR

The New Industrial Policy 2016 aims to attract with maximum limit of Rs 15 million for substantial investments in industry. Creating a single manufacturing unit window platform in order to materialize investments

Ÿ 100 per cent subsidy on the purchase and in the state has been the cornerstone of the new installation of the DG sets from 10KW to 200KW policy. Key features of the Policy: capacity purchased from reputed/ standard

Ÿ Land shall be allotted to the entrepreneurs on company with an upper ceiling limit of Rs 4 first come first serve basis million for Zone A &Rs 4.5 million for Zone B

Ÿ No additional toll tax on the raw materials, fuel Ÿ 50 per cent of the cost of training shall be borne and consumables, procured from outside the by the Government subject to Rs 5,000 per state by the existing or new SSI units trainee and subject to Rs 100,000 per annum for

any unit for a period of five yearsŸ State Capital Investment Subsidy: In Zone A: 30

per cent of the cost of the Plant & Machinery with Ÿ For installation of the latest, online monitoring an upper limit of Rs 6 million for the and high quality pollution control devices, manufacturing unit and 30 per cent of the cost of subsidy on the cost of these devices shall be the Plant & Machinery with an upper limit of Rs 3 available @ 60 per cent of the cost of the device million for Service Sector Unit subject to a max of Rs 5 million

Ÿ For the Prestigious/ Mega Units, the quantum of incentive is 30 per cent of the plant & machinery

PUNJAB

HIMACHAL PRADESH

The State Industrial Policy, 2004 aims to expand the Ÿ Benefit to MSMEs: industrial sector in the state and develop

- Special Investment Subsidy @ 10 per cent on infrastructure with provisions for speedy clearance FCI subject to a maximum of Rs 100,000 of new projects. In the notification dated 12.05.2015, millionthe Government of Himachal Pradesh has further

brought about certain amendments in the said - Interest subsidy @ 5 per cent on term loan Industrial Policy to match with present needs of the availed from the Financial Institution(s) with a industry and further improve the business ceiling of Rs 50,000 p.a. for a period of 3 environment. years

Various incentives offered to attract large scale - 100 per cent subsidy on the carriage and industrial investments. installation cost of the plant and machinery

Special package of incentives aimed at attracting - Reimbursement of cost incurred for new investments shipment of export samples by Micro & Small

EOUs with a ceiling of Rs 15,000/- per Ÿ VAT incentive: Deferment of 100 per cent of VAT

consignment, subject to a maximum Rs for period of 8 years in Category B and 5 years in 50,000/- per enterprise Category A

Thrust Industrial Enterprises: Agro Processing, Ÿ A concessional rate of Electricity Duty will be

Automobile Manufacturing Enterprises, Sericulture charged: Extra High Tension (EHT) category /Handlooms, Electronic Enterprises, Pharma consumers supply voltage (>33 kv) – 15 per cent Products. Incentives to Thrust Industrial Enterprises: ; Large industrial consumer(above 100 KW)

connected load and supply voltage not Ÿ New Thrust Industrial Enterprises located in "B" exceeding 33 KV- 13 per cent and "C" category areas will be eligible for

Ÿ Out of turn preference to sanction power - Out of turn allotment of land/plot/industrial connections to 100 per cent Export Oriented shedsUnits, IT, Bio Technology projects and projects

- Allotment of land/plot/ industrial sheds @50 involving FDIper cent of the normally applicable premium

Ÿ Exemption of 50 per cent of the Stamp Duty on Ÿ Exemption from the payment of State Excise conveyance deed and lease deed

Duty for a period of 7 years to New Thrust Ÿ Relaxation in the Floor Area Ratio (FAR): Minimum Industrial Enterprises set up as MSMEs which are

Plot area for Small industry from 250M^2 to manufacturing wine/cider by using locally 500M^2; for service industry - 501M^2 to produced fruits and located in "B" and "C" areas1000M^2; for medium scale units 1001M^2 to

Ÿ New Thrust Industrial Enterprises based on 5000M^2; for large scale 5000M^2 and above. Horticulture/Vegetable /Maize/ herbal produce The minimum height of the floor of the industrial enterprises and located in 'B' and 'C' category unit shall be 3 metres areas shall be entitled:

The Government of Punjab has recently notified the supported by Sector Specific Strategies for growth. Industrial Policy 2017.The Policy has been The policy gives a great thrust to the development of architected around eight core strategic pillars of MSME sector. The policy also aims at promoting Infrastructure, Power, MSME, Ease of Doing Business, growth of service industries apart from the Startup & Entrepreneurship, Skills, Fiscal & Non- traditional manufacturing industries.Fiscal Incentives and Stakeholder Engagement





RAJASTHAN

For promoting investment and creation of new - Purchase preference to MSMEs of the state in employment, the state has introduced the Rajasthan accordance with the provisions stated in the Investment Promotion Scheme-2014 (RIPS 2014). Procurement of StoresSalient features of the scheme include:

- RIICO will provide land at 50 per cent of the Ÿ For a manufacturing enterprise, the Investment prevailing rate (in the case of RIICO industrial

subsidy of 30 per cent of VAT and CST which have area)become due and have been deposited by the

- State Government shall provide 50 per cent enterprise for seven years. For a service sector of the capital cost for establishment of enterprise, the reimbursement of 50 per cent of Common Effluent Treatment Plant (CETP)amount of VAT paid on purchase of plant and

machinery or equipment for a period up to seven Thrust sectors:years

Ÿ Ceramic and Glass sectorŸ Exemption of 50 per cent of Electricity Duty for

a) Investment Subsidy of 50 per centof VAT and seven yearsCST which have become due and have been

Ÿ Exemption from payment of 50 per cent of Stamp deposited by the enterprise for ten yearsDuty on purchase or lease of land and

b) Employment Generation Subsidy up to 10 construction or improvement on such landper cent of VAT and CST which have become

Ÿ Employment Generation Subsidy up to 20 per due and have been deposited by the cent of VAT and CST which are due and have been enterprise, for ten yearsdeposited by the enterprise, for seven years

Ÿ Dairy sectorŸ Other Exemptions:

a) Investment Subsidy of 50 per cent of VAT and - Exemption from payment of 50 per cent of CST which have become due and have been

Land Tax for seven years deposited by the enterprise for ten years

- Exemption from payment of 50 per cent of b) Employment Generation Subsidy up to 10 Mandi Fee for seven years per cent of VAT and CST which have become

due and have been deposited by the - Exemption from payment of 50 per cent of enterprise, for ten yearsconversion charges payable for change of

land use c) 50 per cent exemption from payment of Entry Tax on capital goods

Ÿ Support to MSME sector:

Ÿ Electronic System Design and Manufacturing - Credit up to Rs 50 million can be availed by (ESDM) sectoryoung entrepreneurs , with interest subsidy

of 6 per cent applicable up to a maximum a) Investment Subsidy of 75 per cent for first credit limit of Rs 9 million four years, 60 per cent for next three years

and 50 per cent for the last three years, of - Concessions in Tender Forms etc. for MSMEs VAT and CST which have become due and at 50 per cent of the prescribed cost

Fiscal Incentives expenses, subject to maximum of Rs 0.25 million for registration of National Stock

Some of the Fiscal incentives for MSME units: Exchange

Ÿ Investment subsidy: Reimbursement of 100 per - Direct subscription upto 10 per cent of the cent of net SGST for 7 with a cap of 100 per cent Public Issue to be provided out of corpus to of FCI be created jointly with SIDBI, nationalized

banks & the State Government subject to a Ÿ Interest Subsidy in Border Districts and Kandi maximum of Rs 1 millionArea: Interest subsidy @ 5 per cent pa only in

Border Districts and Kandi Area subject to - Exemption from Electricity Duty: 100 per maximum of Rs1 million per year for 3 years cent exemption for 7 years

Ÿ Interest Subsidy to SC Entrepreneur/ Women - Exemption/Reimbursement from Stamp Entrepreneur: Interest subsidy @ 5 per cent pa D u t y : 10 0 p e r c e n t exe m p t i o n / only to SC Entrepreneur/ Women Entrepreneur reimbursement from stamp duty for subject to maximum of Rs 1million per year for 3 purchase or lease of land and buildingyears

- Assistance for Technology Acquisition: 50 Ÿ Financial assistance to SMEs for 'Emerge' per cent of the cost subject to maximum of

exchange platform set up by NSE: Rs 2.5 million for adopting technology from a recognized National Institute - 10 per cent of the cost of Public Issue

Table 18: Some of the Fiscal incentives under various categories





RAJASTHAN

For promoting investment and creation of new - Purchase preference to MSMEs of the state in employment, the state has introduced the Rajasthan accordance with the provisions stated in the Investment Promotion Scheme-2014 (RIPS 2014). Procurement of StoresSalient features of the scheme include:

- RIICO will provide land at 50 per cent of the Ÿ For a manufacturing enterprise, the Investment prevailing rate (in the case of RIICO industrial

subsidy of 30 per cent of VAT and CST which have area)become due and have been deposited by the

- State Government shall provide 50 per cent enterprise for seven years. For a service sector of the capital cost for establishment of enterprise, the reimbursement of 50 per cent of Common Effluent Treatment Plant (CETP)amount of VAT paid on purchase of plant and

machinery or equipment for a period up to seven Thrust sectors:years

Ÿ Ceramic and Glass sectorŸ Exemption of 50 per cent of Electricity Duty for

a) Investment Subsidy of 50 per centof VAT and seven yearsCST which have become due and have been

Ÿ Exemption from payment of 50 per cent of Stamp deposited by the enterprise for ten yearsDuty on purchase or lease of land and

b) Employment Generation Subsidy up to 10 construction or improvement on such landper cent of VAT and CST which have become

Ÿ Employment Generation Subsidy up to 20 per due and have been deposited by the cent of VAT and CST which are due and have been enterprise, for ten yearsdeposited by the enterprise, for seven years

Ÿ Dairy sectorŸ Other Exemptions:

a) Investment Subsidy of 50 per cent of VAT and - Exemption from payment of 50 per cent of CST which have become due and have been

Land Tax for seven years deposited by the enterprise for ten years

- Exemption from payment of 50 per cent of b) Employment Generation Subsidy up to 10 Mandi Fee for seven years per cent of VAT and CST which have become

due and have been deposited by the - Exemption from payment of 50 per cent of enterprise, for ten yearsconversion charges payable for change of

land use c) 50 per cent exemption from payment of Entry Tax on capital goods

Ÿ Support to MSME sector:

Ÿ Electronic System Design and Manufacturing - Credit up to Rs 50 million can be availed by (ESDM) sectoryoung entrepreneurs , with interest subsidy

of 6 per cent applicable up to a maximum a) Investment Subsidy of 75 per cent for first credit limit of Rs 9 million four years, 60 per cent for next three years

and 50 per cent for the last three years, of - Concessions in Tender Forms etc. for MSMEs VAT and CST which have become due and at 50 per cent of the prescribed cost

Fiscal Incentives expenses, subject to maximum of Rs 0.25 million for registration of National Stock

Some of the Fiscal incentives for MSME units: Exchange

Ÿ Investment subsidy: Reimbursement of 100 per - Direct subscription upto 10 per cent of the cent of net SGST for 7 with a cap of 100 per cent Public Issue to be provided out of corpus to of FCI be created jointly with SIDBI, nationalized

banks & the State Government subject to a Ÿ Interest Subsidy in Border Districts and Kandi maximum of Rs 1 millionArea: Interest subsidy @ 5 per cent pa only in

Border Districts and Kandi Area subject to - Exemption from Electricity Duty: 100 per maximum of Rs1 million per year for 3 years cent exemption for 7 years

Ÿ Interest Subsidy to SC Entrepreneur/ Women - Exemption/Reimbursement from Stamp Entrepreneur: Interest subsidy @ 5 per cent pa D u t y : 10 0 p e r c e n t exe m p t i o n / only to SC Entrepreneur/ Women Entrepreneur reimbursement from stamp duty for subject to maximum of Rs 1million per year for 3 purchase or lease of land and buildingyears

- Assistance for Technology Acquisition: 50 Ÿ Financial assistance to SMEs for 'Emerge' per cent of the cost subject to maximum of

exchange platform set up by NSE: Rs 2.5 million for adopting technology from a recognized National Institute - 10 per cent of the cost of Public Issue

Table 18: Some of the Fiscal incentives under various categories





capital investment or actual tax deposited, reimbursement on loan taken for development of whichever is lower, with an overall ceiling of infrastructural amenities, subject to an overall 100 per cent of fixed capital investment in ceiling of Rs 10 millionBundelkhand & Poorvanchal, 90 per cent of

Ÿ Interest subsidy to the extent of 5 per cent per fixed capital investment in Madhyanchal & annum for 5 years, subject to an overall ceiling of Paschimanchal (except Gautambuddh Nagar Rs 10 million& Ghaziabad districts) and 80 per cent of

fixed capital investment in Gautambuddh Ÿ Exemption from Mandi fee for all new food Nagar & Ghaziabad districts processing units on purchase of raw material for

5 yearsŸ Capital Interest Subsidy to the extent of 5 per

cent per annum for 5 years, subject to an annual Ÿ Units generating minimum employment of 200 ceiling of Rs 5 million direct workers including skilled and unskilled will

be provided 10 per cent additional EPF Ÿ Infrastructure Interest Subsidy to the extent of 5

reimbursement faci l i ty on employer 's per cent per annum for 5 years in the form of contribution

Thrust are as under the policy are : IT / ITeS, Electronic Manufacturing, Agro & Food Processing, New & Renewable Energy etc

UTTARAKHAND

Uttarakhand has emerged as one of the major for next five years. The state will reimburse Re 1 industrial destinations in the Region. To encourage /- per unit on electricity units consumed for the private participation in all the industries and to next five years after commencement of promote growth of all the sectors the State commercial operationGovernment has undertaken various policy

Ÿ Eligible units will also get 100 per cent initiatives from time to time. Mega Industrial & reimbursement of the electricity duty for the Investment Policy was launched by Government of next 7 years Uttarakhand in 2015. Key features of the policy

include: Ÿ Reimbursement of Registration Fees for the registration of the land purchase deed/ lease

Ÿ Reimbursement of CST paid in excess of 1 per deed in excess of Re 1/- per Rs 1,000 shall be cent on sale shall be made to eligible Units under made to el igible units . 50 per cent the policy for 5 years reimbursement on payment of the stamp duty on

Ÿ VAT reimbursement: 30 per cent for large execution of the Land purchase/ Land lease deedprojects, 50 per cent for mega/ ultra-mega

Ÿ Payroll assistance to the eligible projects/units of projects for 5 years from the date of Rs 500 per month per additional employee (Rs commencement of commercial operation700 per month in case of woman employee)

Ÿ Interest Subsidy on term loan from State Ÿ Mandi Fees exemption: Eligible units will be Financial Institution/ Bank for a period of 5 years

reimbursed up to 75 per cent on all items related Ÿ Eligible Textile units will be provided continuous to whether raw, processed, finished products, on

power supply with pre- declared power roasting which mandi fees is applicable

have been deposited by the enterprise for Ÿ Pharmaceutical sectorten years

a) Investment Subsidy of 50 per cent of VAT and b) Employment Generation Subsidy up to 10 CST which have become due and have been

per cent of VAT and CST which have become deposited by the enterprise for seven yearsdue and have been deposited by the

b) Employment Generation Subsidy up to 10 enterprise, for ten yearsper cent of VAT and CST which have become

c) 50 per cent exemption from payment of due and have been deposited by the Entry Tax on capital goods, for setting up of enterprise, for seven yearsplant for new unit or for expansion of existing

c) 50 per cent exemption from payment of enterprise or for revival of sick industrial Entry Tax on capital goodsenterprise, brought into the local areas

before the date of commencement of commercial production/operation.

UTTAR PRADESH

Government of Uttar Pradesh has recently notified - 90 per cent for Small Industries for 5 years, the Industrial Investment and Employment subject to annual ceiling of 20 per cent of Promotion Policy of Uttar Pradesh 2017, with an capital investment or actual tax deposited, objective to promote and establish Uttar Pradesh as whichever is lower, with an overall ceiling of a nationally and internationally competitive 100 per cent of fixed capital investment in investment destination, thereby generating Bundelkhand & Poorvanchal, 90 per cent of employment and igniting sustainable, inclusive and fixed capital investment in Madhyanchal & balanced economic growth of the state. Paschimanchal (except Gautam buddh nagar

& Ghaziabad districts) and 80 per cent of Fiscal incentives – Attracting investments fixed capital investment in Gautam buddh

nagar& Ghaziabad districtsŸ Stamp Duty exemption of 100 per cent in Bundel khand & Poorvanchal, 75 per cent in - 60 per cent for Medium Industries for 5 Madhyanchal & Paschimanchal (except Gautam years, subject to a ceiling of 20 per cent of buddh nagar & Ghaziabad districts) region of the capital investment or actual tax deposited, state and 50 per cent in Gautam buddh nagar& whichever is lower, with an overall ceiling of Ghaziabad districts 100 per cent of fixed capital investment in

Bundelkhand & Poorvanchal, 90 per cent of Ÿ EPF reimbursement facility to the extent of 50 fixed capital investment in Madhyanchal & per cent of employer's contribution to all such Paschimanchal (except Gautam buddh nagar new Industrial units providing direct employment & Ghaziabad districts) and 80 per cent of to 100 or more unskilled workersfixed capital investment in Gautam buddh

Ÿ Reimbursement of net VAT and CST or the net nagar & Ghaziabad districtsamount deposited in State's account visa-vis

- 60 per cent for large Industries for 5 years, share of the state under GST as follows which will subject to annual ceiling of 20 per cent of not be more than the amount deposited annually





capital investment or actual tax deposited, reimbursement on loan taken for development of whichever is lower, with an overall ceiling of infrastructural amenities, subject to an overall 100 per cent of fixed capital investment in ceiling of Rs 10 millionBundelkhand & Poorvanchal, 90 per cent of

Ÿ Interest subsidy to the extent of 5 per cent per fixed capital investment in Madhyanchal & annum for 5 years, subject to an overall ceiling of Paschimanchal (except Gautambuddh Nagar Rs 10 million& Ghaziabad districts) and 80 per cent of

fixed capital investment in Gautambuddh Ÿ Exemption from Mandi fee for all new food Nagar & Ghaziabad districts processing units on purchase of raw material for

5 yearsŸ Capital Interest Subsidy to the extent of 5 per

cent per annum for 5 years, subject to an annual Ÿ Units generating minimum employment of 200 ceiling of Rs 5 million direct workers including skilled and unskilled will

be provided 10 per cent additional EPF Ÿ Infrastructure Interest Subsidy to the extent of 5

reimbursement faci l i ty on employer 's per cent per annum for 5 years in the form of contribution

Thrust are as under the policy are : IT / ITeS, Electronic Manufacturing, Agro & Food Processing, New & Renewable Energy etc

UTTARAKHAND

Uttarakhand has emerged as one of the major for next five years. The state will reimburse Re 1 industrial destinations in the Region. To encourage /- per unit on electricity units consumed for the private participation in all the industries and to next five years after commencement of promote growth of all the sectors the State commercial operationGovernment has undertaken various policy

Ÿ Eligible units will also get 100 per cent initiatives from time to time. Mega Industrial & reimbursement of the electricity duty for the Investment Policy was launched by Government of next 7 years Uttarakhand in 2015. Key features of the policy

include: Ÿ Reimbursement of Registration Fees for the registration of the land purchase deed/ lease

Ÿ Reimbursement of CST paid in excess of 1 per deed in excess of Re 1/- per Rs 1,000 shall be cent on sale shall be made to eligible Units under made to el igible units . 50 per cent the policy for 5 years reimbursement on payment of the stamp duty on

Ÿ VAT reimbursement: 30 per cent for large execution of the Land purchase/ Land lease deedprojects, 50 per cent for mega/ ultra-mega

Ÿ Payroll assistance to the eligible projects/units of projects for 5 years from the date of Rs 500 per month per additional employee (Rs commencement of commercial operation700 per month in case of woman employee)

Ÿ Interest Subsidy on term loan from State Ÿ Mandi Fees exemption: Eligible units will be Financial Institution/ Bank for a period of 5 years

reimbursed up to 75 per cent on all items related Ÿ Eligible Textile units will be provided continuous to whether raw, processed, finished products, on

power supply with pre- declared power roasting which mandi fees is applicable

have been deposited by the enterprise for Ÿ Pharmaceutical sectorten years

a) Investment Subsidy of 50 per cent of VAT and b) Employment Generation Subsidy up to 10 CST which have become due and have been

per cent of VAT and CST which have become deposited by the enterprise for seven yearsdue and have been deposited by the

b) Employment Generation Subsidy up to 10 enterprise, for ten yearsper cent of VAT and CST which have become

c) 50 per cent exemption from payment of due and have been deposited by the Entry Tax on capital goods, for setting up of enterprise, for seven yearsplant for new unit or for expansion of existing

c) 50 per cent exemption from payment of enterprise or for revival of sick industrial Entry Tax on capital goodsenterprise, brought into the local areas

before the date of commencement of commercial production/operation.

UTTAR PRADESH

Government of Uttar Pradesh has recently notified - 90 per cent for Small Industries for 5 years, the Industrial Investment and Employment subject to annual ceiling of 20 per cent of Promotion Policy of Uttar Pradesh 2017, with an capital investment or actual tax deposited, objective to promote and establish Uttar Pradesh as whichever is lower, with an overall ceiling of a nationally and internationally competitive 100 per cent of fixed capital investment in investment destination, thereby generating Bundelkhand & Poorvanchal, 90 per cent of employment and igniting sustainable, inclusive and fixed capital investment in Madhyanchal & balanced economic growth of the state. Paschimanchal (except Gautam buddh nagar

& Ghaziabad districts) and 80 per cent of Fiscal incentives – Attracting investments fixed capital investment in Gautam buddh

nagar& Ghaziabad districtsŸ Stamp Duty exemption of 100 per cent in Bundel khand & Poorvanchal, 75 per cent in - 60 per cent for Medium Industries for 5 Madhyanchal & Paschimanchal (except Gautam years, subject to a ceiling of 20 per cent of buddh nagar & Ghaziabad districts) region of the capital investment or actual tax deposited, state and 50 per cent in Gautam buddh nagar& whichever is lower, with an overall ceiling of Ghaziabad districts 100 per cent of fixed capital investment in

Bundelkhand & Poorvanchal, 90 per cent of Ÿ EPF reimbursement facility to the extent of 50 fixed capital investment in Madhyanchal & per cent of employer's contribution to all such Paschimanchal (except Gautam buddh nagar new Industrial units providing direct employment & Ghaziabad districts) and 80 per cent of to 100 or more unskilled workersfixed capital investment in Gautam buddh

Ÿ Reimbursement of net VAT and CST or the net nagar & Ghaziabad districtsamount deposited in State's account visa-vis

- 60 per cent for large Industries for 5 years, share of the state under GST as follows which will subject to annual ceiling of 20 per cent of not be more than the amount deposited annually





SECTION 4: EASE OF DOING BUSINESS IN NORTHERN STATES

Government of India has prioritised promoting A major reform initiative in this regard has been the regulatory reforms at state level as one of the key Department of Industrial Policy and Promotion pillars of strategy to boost the manufacturing sector (DIPP), Ministry of Commerce and Industry, growth. This has led to a number of initiatives being Government of India’s 98-point Action Plan on “Ease undertaken by the Central and concurrently by the of Doing Business” in 2015, ranking states in terms of State Governments to improve the investment implementation of these action plans by them. The climate especially on the Ease of Doing Business. The parameters of the ranking included setting up a efforts paid off with India ranked at 130th position in business; allotment of land and obtaining 2017 in the World Banks’s Ease of Doing Business construction permit; complying with environment

12rankings from 142nd position in 2015 . procedures; complying with labour regulations; obtaining infrastructure related utilities etc.

Led by the spirit of cooperative and competitive federalism, the Indian states, particularly from the It is encouraging to note that many states,

Region have enthusiastically taken on board the particularly in the Region, have responded eagerly to

business reform agenda. These efforts, among other DIPP’s 98-point action plan with ambitious reform

things, focus on implementing reforms relating to initiatives. Encouraged by the positive response from

starting a business, labour law reforms, the states, 340-point Business Reform Action Plan

environmental clearances, etc. 2016 was instrumented for the states to further improve their business environment.

12 Doing Business Report, World Bank 2017

Source: DIPP EoDB Website

Table 19: State's Business Reform Ranking

(in per cent) (in per cent)

&

Ÿ Provision for subsidy for establishment of ETP- Ÿ Reimbursement of 100 per cent amount of VAT to 30 per cent subsidy max up to Rs 5 million Textile units for the next 7 years on sale of

finished products and 100 per cent exemption Mega Textile Park Policy 2016 form payment of VAT Tax on purchase of raw and

packing materialŸ Special Exemption/ discount of 50 per cent on the prevailing rates will be given on land

Ÿ Concession of Re 1/- per unit on electricity units allotment. 20 per cent of the land premium/ price consumed for next 7 yearsshall be payable on the allotment of land

Ÿ 100 per cent exemption on payment of Ÿ Textile units under MSME sector will be given a Electricity Duty for next 7 years from

capital subsidy of 15 per cent or a maximum of Rs commencement of commercial production5 million and Large/ Mega Units shall be given a capital subsidy of 15 per cent or a maximum of Rs Ÿ Exemption of 75 per cent on Mandi Tax to Textile 3 million up to 2017 by the Central Government units

Ÿ Interest subsidy of 7 per cent for the next 7 years Ÿ 100 per cent exemption on payment of CST to from commencement of commercial production Textile Units on sale of finished products

Uttarakhand MSME Policy-2015



EASE OF DOING BUSINESS IN NORTHERN STATES


SECTION 4: EASE OF DOING BUSINESS IN NORTHERN STATES

Government of India has prioritised promoting A major reform initiative in this regard has been the regulatory reforms at state level as one of the key Department of Industrial Policy and Promotion pillars of strategy to boost the manufacturing sector (DIPP), Ministry of Commerce and Industry, growth. This has led to a number of initiatives being Government of India’s 98-point Action Plan on “Ease undertaken by the Central and concurrently by the of Doing Business” in 2015, ranking states in terms of State Governments to improve the investment implementation of these action plans by them. The climate especially on the Ease of Doing Business. The parameters of the ranking included setting up a efforts paid off with India ranked at 130th position in business; allotment of land and obtaining 2017 in the World Banks’s Ease of Doing Business construction permit; complying with environment

12rankings from 142nd position in 2015 . procedures; complying with labour regulations; obtaining infrastructure related utilities etc.

Led by the spirit of cooperative and competitive federalism, the Indian states, particularly from the It is encouraging to note that many states,

Region have enthusiastically taken on board the particularly in the Region, have responded eagerly to

business reform agenda. These efforts, among other DIPP’s 98-point action plan with ambitious reform

things, focus on implementing reforms relating to initiatives. Encouraged by the positive response from

starting a business, labour law reforms, the states, 340-point Business Reform Action Plan

environmental clearances, etc. 2016 was instrumented for the states to further improve their business environment.

12 Doing Business Report, World Bank 2017

Source: DIPP EoDB Website

Table 19: State's Business Reform Ranking

(in per cent) (in per cent)

&

Ÿ Provision for subsidy for establishment of ETP- Ÿ Reimbursement of 100 per cent amount of VAT to 30 per cent subsidy max up to Rs 5 million Textile units for the next 7 years on sale of

finished products and 100 per cent exemption Mega Textile Park Policy 2016 form payment of VAT Tax on purchase of raw and

packing materialŸ Special Exemption/ discount of 50 per cent on the prevailing rates will be given on land

Ÿ Concession of Re 1/- per unit on electricity units allotment. 20 per cent of the land premium/ price consumed for next 7 yearsshall be payable on the allotment of land

Ÿ 100 per cent exemption on payment of Ÿ Textile units under MSME sector will be given a Electricity Duty for next 7 years from

capital subsidy of 15 per cent or a maximum of Rs commencement of commercial production5 million and Large/ Mega Units shall be given a capital subsidy of 15 per cent or a maximum of Rs Ÿ Exemption of 75 per cent on Mandi Tax to Textile 3 million up to 2017 by the Central Government units

Ÿ Interest subsidy of 7 per cent for the next 7 years Ÿ 100 per cent exemption on payment of CST to from commencement of commercial production Textile Units on sale of finished products

Uttarakhand MSME Policy-2015





Table 22: Major Focus Areas for a Sustainable Business Environment

Punjab has been ranked 12th in 2016, compared to to information (92.31 per cent), commercial tax 16th in 2015. It improved its rank this year through registration (97.96 per cent), and inspections strengthening its single window system (100 per reforms (97.67 per cent). There exists potential for cent) and building strong labour and environmental improvement on Land and Property Registration (60 registration systems (100 per cent). It also achieved per cent), Construction Permits (62.07 per cent) and implementation scores above 90 per cent on access Enforcing Contracts (44.44 per cent).

PUNJAB

Haryana has been ranked at 6th place in 2016, which environment and property, and utility connections. is a significant improvement from 14th rank in 2015. Although the state scores 100 per cent on 4 of 10 During last year, Haryana has implemented a parameters, there exists potential for improvement significant number of reforms, increasing its on Land and Property Registration (85 per cent) and implementation score significantly. They focused on Enforcing Contracts (55.56 per cent).a number of systems for online registration for taxes,

HARYANA


Haryana, Rajasthan and Uttarakhand while 2016 had been 32 per cent and 48.9 per cent exceptionally improved their business environment respectively. In 2015, only Rajasthan implemented through the implementation of the 2016 Business more than 50 per cent of the reform agenda, Reforms and have been ranked amongst the first 10 whereas, in 2016, 4 states- Haryana, Rajasthan, states at 6th, 8th, and 9th positions respectively. Uttarakhand and Punjab have implemented more There has been a significant improvement in the than 90 per cent of the reforms. The states have been implementation of business reform by the Northern further placed into four different categories such as States. The average implementation has been 64.3 Leaders, Aspiring Leaders, Acceleration Required per cent in 2016 against 30.7 per cent in 2015. and Jump Start Needed.Interestingly, the national average for the 2015 and

Source: DIPP Assessment Study on EoDB in States 2016

Some of the noteworthy innovative reforms spread across 12 reform areas, that is, labour implemented by the states include introduction of regulation enablers; contract enforcement; online single window systems for business registering property; inspection reform enablers; registration, or improved existing platforms, bringing single window system; land availability and allotment; in legislation for implementing of single window construction permit enablers; environmental system, introduction of risk-based classification of registration enablers; obtaining utility permits; businesses for various licenses, introduction of self- paying taxes; access to information and and third-party certification to reduce burden of transparency enablers and sector specific reforms compliance inspections under more than 15 laws, spanning the life cycle of a typical business. i n t ro d u c t i o n o f d e d i c a t e d c o m m e rc i a l

DIPP will carry out a comprehensive business-to-benches/courts etc amongst others. government (B2G) feedback exercise this year

As a step further into improving the business whereby feedback will be taken from businesses on environment at state level, DIPP has released the the quality of implementation of the reforms claimed Business Reform Action Plan (BRAP) 2017 for by the States and UTs. For each State/ UT, the scores implementation by states/UTs, which includes 405 will be aggregated over all the surveys conducted to recommendations for reforms on regulatory yield an overall score for the State/ UT.processes, policies, practices and procedures

Table 20: Ranking of States in Different Category






Punjab has been ranked 12th in 2016, compared to to information (92.31 per cent), commercial tax 16th in 2015. It improved its rank this year through registration (97.96 per cent), and inspections strengthening its single window system (100 per reforms (97.67 per cent). There exists potential for cent) and building strong labour and environmental improvement on Land and Property Registration (60 registration systems (100 per cent). It also achieved per cent), Construction Permits (62.07 per cent) and implementation scores above 90 per cent on access Enforcing Contracts (44.44 per cent).

PUNJAB

Haryana has been ranked at 6th place in 2016, which environment and property, and utility connections. is a significant improvement from 14th rank in 2015. Although the state scores 100 per cent on 4 of 10 During last year, Haryana has implemented a parameters, there exists potential for improvement significant number of reforms, increasing its on Land and Property Registration (85 per cent) and implementation score significantly. They focused on Enforcing Contracts (55.56 per cent).a number of systems for online registration for taxes,

HARYANA


Haryana, Rajasthan and Uttarakhand while 2016 had been 32 per cent and 48.9 per cent exceptionally improved their business environment respectively. In 2015, only Rajasthan implemented through the implementation of the 2016 Business more than 50 per cent of the reform agenda, Reforms and have been ranked amongst the first 10 whereas, in 2016, 4 states- Haryana, Rajasthan, states at 6th, 8th, and 9th positions respectively. Uttarakhand and Punjab have implemented more There has been a significant improvement in the than 90 per cent of the reforms. The states have been implementation of business reform by the Northern further placed into four different categories such as States. The average implementation has been 64.3 Leaders, Aspiring Leaders, Acceleration Required per cent in 2016 against 30.7 per cent in 2015. and Jump Start Needed.Interestingly, the national average for the 2015 and

Source: DIPP Assessment Study on EoDB in States 2016

Some of the noteworthy innovative reforms spread across 12 reform areas, that is, labour implemented by the states include introduction of regulation enablers; contract enforcement; online single window systems for business registering property; inspection reform enablers; registration, or improved existing platforms, bringing single window system; land availability and allotment; in legislation for implementing of single window construction permit enablers; environmental system, introduction of risk-based classification of registration enablers; obtaining utility permits; businesses for various licenses, introduction of self- paying taxes; access to information and and third-party certification to reduce burden of transparency enablers and sector specific reforms compliance inspections under more than 15 laws, spanning the life cycle of a typical business. i n t ro d u c t i o n o f d e d i c a t e d c o m m e rc i a l

DIPP will carry out a comprehensive business-to-benches/courts etc amongst others. government (B2G) feedback exercise this year

As a step further into improving the business whereby feedback will be taken from businesses on environment at state level, DIPP has released the the quality of implementation of the reforms claimed Business Reform Action Plan (BRAP) 2017 for by the States and UTs. For each State/ UT, the scores implementation by states/UTs, which includes 405 will be aggregated over all the surveys conducted to recommendations for reforms on regulatory yield an overall score for the State/ UT.processes, policies, practices and procedures

Table 20: Ranking of States in Different Category






UTTAR PRADESH

Uttar Pradesh has been ranked 14th in 2016, offered by the department. The state has scored compared to 10th in 2015. The state implemented 67.86 per cent in the area of establishing online 284 reforms covering various areas such as Tax Single Window System. The State Government also registration (100 per cent), Environment Registration needs to implement reforms on Land and Property (96.77 per cent), Labour Registration (96.77 per Registration (50 per cent), Construction Permits cent), Inspections (93.02 per cent) and Obtaining (68.97 per cent) and Enforcing Contracts (11.11 per Utility Connection (78.57 per cent). The state is yet to cent).provide one-stop solution to enclose all the services



RAJASTHAN

Although the state's rank dropped from 6th in 2015 to (96.55 per cent) systems this year. There exists 8th in 2016, it scored 100 per cent on 6 out of 10 potential for improvement on Land and Property indicators. It introduced new state-of-the-art single Registration (60 per cent) and Enforcing Contracts window (100 per cent) and construction permitting (66.67 per cent).

UTTARAKHAND

Uttarakhand has drastically improved its rank, from across various parameters – it scored 100 per cent 23rd in 2015 to 9th in 2016. It is the only state among on 7 out of 10 parameters. There exists potential for last year’s ‘Jump Start Needed’ category to have improvement on Land and Property Registration (80 entered the ‘Leaders’ category this year. This per cent) and Enforcing Contracts (22.22 per cent).tremendous improvement is marked by reforms






UTTAR PRADESH

Uttar Pradesh has been ranked 14th in 2016, offered by the department. The state has scored compared to 10th in 2015. The state implemented 67.86 per cent in the area of establishing online 284 reforms covering various areas such as Tax Single Window System. The State Government also registration (100 per cent), Environment Registration needs to implement reforms on Land and Property (96.77 per cent), Labour Registration (96.77 per Registration (50 per cent), Construction Permits cent), Inspections (93.02 per cent) and Obtaining (68.97 per cent) and Enforcing Contracts (11.11 per Utility Connection (78.57 per cent). The state is yet to cent).provide one-stop solution to enclose all the services



RAJASTHAN

Although the state's rank dropped from 6th in 2015 to (96.55 per cent) systems this year. There exists 8th in 2016, it scored 100 per cent on 6 out of 10 potential for improvement on Land and Property indicators. It introduced new state-of-the-art single Registration (60 per cent) and Enforcing Contracts window (100 per cent) and construction permitting (66.67 per cent).

UTTARAKHAND

Uttarakhand has drastically improved its rank, from across various parameters – it scored 100 per cent 23rd in 2015 to 9th in 2016. It is the only state among on 7 out of 10 parameters. There exists potential for last year’s ‘Jump Start Needed’ category to have improvement on Land and Property Registration (80 entered the ‘Leaders’ category this year. This per cent) and Enforcing Contracts (22.22 per cent).tremendous improvement is marked by reforms





IMPLEMENTATION OF INDUSTRIAL contribution to the total Industrial Entrepreneur ENTREPRENEUR MEMORANDA (IEMS) Memoranda (IEMs) filed and implemented in the

country.The Northern Region states have a significant

Table 27: State wise Breakup of Investment Intentions In terms of IEMs Filed, LOIs/DILs Issued

SECTION 5: NEW INDUSTRIAL INVESTMENTS

Note: IEM Part A is being filed by non-MSME category Industries; Part B is being filed at the time of commencement of commercial production for Part A filed since August 1991.Source: DIPP, Ministry of Commerce & Industry, Government of India

Himachal Pradesh has been ranked at 17th in 2016, state (79.07 per cent). Although the State maintaining its 2015 rank. The state focused on Government had successfully implemented 220 reforms in the areas of Environmental Registration points out of 340 points and is yet to address the (100 per cent), Obtaining Utility Connections (85.71 implementation gap in establishing online single per cent), Labour Registration (78.95 per cent), to window, conducting land and construction permit simply and streamline the registration processes and reforms, establishing electronic commercial courts.carried out reforms for various inspections in the

HIMACHAL PRADESH




NEW INDUSTRIAL INVESTMENTS


IMPLEMENTATION OF INDUSTRIAL contribution to the total Industrial Entrepreneur ENTREPRENEUR MEMORANDA (IEMS) Memoranda (IEMs) filed and implemented in the

country.The Northern Region states have a significant

Table 27: State wise Breakup of Investment Intentions In terms of IEMs Filed, LOIs/DILs Issued

SECTION 5: NEW INDUSTRIAL INVESTMENTS

Note: IEM Part A is being filed by non-MSME category Industries; Part B is being filed at the time of commencement of commercial production for Part A filed since August 1991.Source: DIPP, Ministry of Commerce & Industry, Government of India

Himachal Pradesh has been ranked at 17th in 2016, state (79.07 per cent). Although the State maintaining its 2015 rank. The state focused on Government had successfully implemented 220 reforms in the areas of Environmental Registration points out of 340 points and is yet to address the (100 per cent), Obtaining Utility Connections (85.71 implementation gap in establishing online single per cent), Labour Registration (78.95 per cent), to window, conducting land and construction permit simply and streamline the registration processes and reforms, establishing electronic commercial courts.carried out reforms for various inspections in the

HIMACHAL PRADESH






According to the above data, Delhi (RBI Regional region is seen to be lagging behind, in respect to its Office covering part of UP and Haryana) is the most strength and resource allocation. But with the states preferred destination in the region for FDI inflow (US$ taking up measures on several front like fiscal 70,384 million) with 21 per cent of total inflows incentives, improving regulatory framework for received in last 17 years. This may be on account of business, infrastructure development, removing increased infrastructure spending by the private structural bottlenecks, skills development etc., the sector. Region is geared up to become a pioneer investment

destination of the country.Even though there has been a positive growth FDI in the region but when compared to rest of India, the

13 Make in India Website

Table 29: Outstanding Investment 2015-16 (Rs million)

On the outstanding investment trend in the Northern fact that growth in service sector has been highest in Region during 2015-16, the highest outstanding the Region. Also, Uttar Pradesh has the highest investment (Rs 11,402,814 million) is in the services outstanding investment at Rs 8,610,871 million sector (other than financial) which forms about 50 followed by Rajasthan and Haryana. Further, Uttar per cent of the total outstanding investment of the Pradesh has the highest outstanding investment in region and contributes to 20 per cent to India's total each individual sector except for mining.outstanding investment. This is expected given the

Source: CMIENote: Outstanding projects are those that are still under implementation or are under consideration for implementation as of the date of reference. These projects have not been completed, stalled, shelved or abandoned as of the date. The list of outstanding projects keeps changing over time. As new projects get announced, they get added to the list of outstanding projects. As they get completed they are moved out of the list of outstanding projects. Projects also move out of the outstanding list if they are stalled or shelved or abandoned or information regarding them is not available for over 30 months in the case of manufacturing projects and for over 36 months in the case of infrastructure projects.

Actual investments coming in the Northern Region as against Northern Regions’ percentage of 37 per has declined both in terms of number and the actual cent, 30 per cent and 19 per cent respectively. amount invested during 2016. The Actual During 2016, Punjab, Rajasthan and Uttar Pradesh investments in the Northern Region as a percentage had the highest percentage of the actual of total has decreased from 10 per cent in 2016 to 8 investments coming into the Region (number), per cent in 2017 (upto January-August 2017). accounting for 89 per cent of the total investments However, over 3 years, percentage of actual flowing in to the Region. Further, during 2017 (upto investments happening vis-à-vis the proposed January-August), Rajasthan and Uttar Pradesh investments has been higher for the Northern Region constituted 77 per cent of the total investments against India total. India’s percentage for the three happening in the Region.years was 25 per cent, 24 per cent and 13 per cent;

FOREIGN DIRECT INVESTMENTS

India has been ranked amongst the top 10 attractive route permitted in Insurance and Pension sectors, destinations for inbound investments. The Defence sector etc. FDI up to 100 per cent has also Government has been consistently working towards been under automatic route permitted in Teleports, improving the regulatory environment for attracting Direct to Home, Cable Networks, Mobile TV, Headend-

13foreign investments. Interestingly, the Government’s in- the Sky Broadcasting Service amongst others .measures have been directed towards opening new

States in the Northern Region are also increasingly sectors for Foreign Direct Investment (FDI), working towards attracting investors from global increasing the sectoral limit of existing sectors and investors in various manufacturing and service simplifying other conditions of the FDI policy. Over industry sectors. The Northern Region has the last couple of years, the policy measures in this constituted 27.6 per cent of India's cumulative FDI regard includes 49 per cent FDI under automatic inflows since April, 2000 to June, 2017.

Table 28: FDI Equity Inflows from April, 2000 to June, 2017 (amount US$ million)

Note: Figures in bracket are in US$ million. The total all India figure does not include Region Not indicated and flow under RBI NRI schemeSource: DIPP, Ministry of Commerce & Industry, Government of India

Percentage to total inflows

(in terms of US$)





According to the above data, Delhi (RBI Regional region is seen to be lagging behind, in respect to its Office covering part of UP and Haryana) is the most strength and resource allocation. But with the states preferred destination in the region for FDI inflow (US$ taking up measures on several front like fiscal 70,384 million) with 21 per cent of total inflows incentives, improving regulatory framework for received in last 17 years. This may be on account of business, infrastructure development, removing increased infrastructure spending by the private structural bottlenecks, skills development etc., the sector. Region is geared up to become a pioneer investment

destination of the country.Even though there has been a positive growth FDI in the region but when compared to rest of India, the

13 Make in India Website

Table 29: Outstanding Investment 2015-16 (Rs million)

On the outstanding investment trend in the Northern fact that growth in service sector has been highest in Region during 2015-16, the highest outstanding the Region. Also, Uttar Pradesh has the highest investment (Rs 11,402,814 million) is in the services outstanding investment at Rs 8,610,871 million sector (other than financial) which forms about 50 followed by Rajasthan and Haryana. Further, Uttar per cent of the total outstanding investment of the Pradesh has the highest outstanding investment in region and contributes to 20 per cent to India's total each individual sector except for mining.outstanding investment. This is expected given the

Source: CMIENote: Outstanding projects are those that are still under implementation or are under consideration for implementation as of the date of reference. These projects have not been completed, stalled, shelved or abandoned as of the date. The list of outstanding projects keeps changing over time. As new projects get announced, they get added to the list of outstanding projects. As they get completed they are moved out of the list of outstanding projects. Projects also move out of the outstanding list if they are stalled or shelved or abandoned or information regarding them is not available for over 30 months in the case of manufacturing projects and for over 36 months in the case of infrastructure projects.

Actual investments coming in the Northern Region as against Northern Regions’ percentage of 37 per has declined both in terms of number and the actual cent, 30 per cent and 19 per cent respectively. amount invested during 2016. The Actual During 2016, Punjab, Rajasthan and Uttar Pradesh investments in the Northern Region as a percentage had the highest percentage of the actual of total has decreased from 10 per cent in 2016 to 8 investments coming into the Region (number), per cent in 2017 (upto January-August 2017). accounting for 89 per cent of the total investments However, over 3 years, percentage of actual flowing in to the Region. Further, during 2017 (upto investments happening vis-à-vis the proposed January-August), Rajasthan and Uttar Pradesh investments has been higher for the Northern Region constituted 77 per cent of the total investments against India total. India’s percentage for the three happening in the Region.years was 25 per cent, 24 per cent and 13 per cent;

FOREIGN DIRECT INVESTMENTS

India has been ranked amongst the top 10 attractive route permitted in Insurance and Pension sectors, destinations for inbound investments. The Defence sector etc. FDI up to 100 per cent has also Government has been consistently working towards been under automatic route permitted in Teleports, improving the regulatory environment for attracting Direct to Home, Cable Networks, Mobile TV, Headend-

13foreign investments. Interestingly, the Government’s in- the Sky Broadcasting Service amongst others .measures have been directed towards opening new

States in the Northern Region are also increasingly sectors for Foreign Direct Investment (FDI), working towards attracting investors from global increasing the sectoral limit of existing sectors and investors in various manufacturing and service simplifying other conditions of the FDI policy. Over industry sectors. The Northern Region has the last couple of years, the policy measures in this constituted 27.6 per cent of India's cumulative FDI regard includes 49 per cent FDI under automatic inflows since April, 2000 to June, 2017.

Table 28: FDI Equity Inflows from April, 2000 to June, 2017 (amount US$ million)

Note: Figures in bracket are in US$ million. The total all India figure does not include Region Not indicated and flow under RBI NRI schemeSource: DIPP, Ministry of Commerce & Industry, Government of India

Percentage to total inflows

(in terms of US$)





KEY WEB LINKS AND CONTACT DETAILS OF KEY OFFICIALS IN NORTHERN STATES

Annexure: I






Annexure: I





































NOTES

NOTES


NOTES

NOTES


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