INDIAN STATESEconomy and Business

Delhi

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INDIAN STATESEconomy and Business

Delhi

www.ibef.org

CONTENTS

Executive Summary 5

Economic Snapshot 7

The State Economy 9

Infrastructure 10Social infrastructure 10Access infrastructure 10Communications infrastructure 12Industrial infrastructure 12

State Policy 13Vision & mission 13Industrial policy 13Infrastructure policy 14Tourism policy 14

Business Opportunities 15Key industries 15Exports 16Investment 16Potential hubs for investment 16

Key Players 18

Doing Business in Delhi 21Obtaining approvals 21Cost of business 21Contact for information 22

A report by PricewaterhouseCoopers Pvt Ltd for IBEF

DELHI PAGE 5

Executive Summary

participation in infrastructure development in the state.

Delhi’s per capita income is more than double thenational average.The per capita income at currentprices is estimated to be US$ 1099 in 2003-04 as compared to US$ 446.6 at the national level.

Delhi is the second most favoured destination forForeign Direct Investment (FDI) in India, attracting12.8 per cent of total FDI into India between 1991 and 2002.

Sectors with a strong presence in Delhi includeretailing & leisure, tourism and apparels.The stateoffers significant potential for private healthcarefacilities and infrastructure development throughprivate sector participation.

Delhi is the most prosperous and one of fastestgrowing economies in India. Its economy grew at a CAGR of 10 per cent between 1994 and 2003.In addition to being the national capital, Delhi is theprincipal business and commercial centre in northernIndia. It is well complemented by industrial areas in the National Capital Region such as Gurgaon,Faridabad and Noida.

Delhi is India’s largest consumer market selling thelargest number of consumer goods and cars.The statehas the highest concentration of households with an annual income of US$ 110,000.

The physical and economic infrastructure in Delhi is among the best in the country and the stategovernment is proactive in encouraging private

Industrial Centres in Delhi

DELHI PAGE 7

An Economic Snapshot

Area (sq km) 1,483

Population (2001, million) 13.8

Literacy rate (%) 81.67

Gross State Domestic Product (GSDP)(US$ billion) 17.8

NSDP growth (%) (10 years) 15.38

Per capita income (US$) 1099

Domestic airport Palam

International airport Indira Gandhi International Airport

Key industries Retailing & leisureTourismApparels

Industries with growth potential Healthcare

Advantage Delhi

n A prosperous and fast growing economy driven by services sector

n Second most favoured FDI destination in India

n Excellent physical, social and economic infrastructure

n Biggest consumption centre in India for consumer goods and cars,highest concentration of “super-rich” and “rich” households

n Attractive tourist destination with the second highest share of foreign tourists

n Potential for developing private healthcare for domestic and international markets

DELHI PAGE 9

The State Economy

of 12.1 per cent. Net State Domestic Product (NSDP) at current prices for the year 2002-03 is US$ 14.6 billion indicating a growth of 11.6 per centover the previous year.

Delhi is among the most advanced economies inIndia, with the services sector contributing 77 percent to the state’s domestic product.The sector grew 12 per cent between 1993-94 and 2000-01.

Within this sector, the share of financial, insurance,real estate, and business services, increased from 25 per cent in 1993-94 to 31 per cent in 2002-03.The services sector in Delhi’s economy reportedstrong growth of 8.5 per cent in real terms during2002-03 with the communications sector witnessingthe highest growth of about 22 per cent in 2002-03. Between 1993-94 and 2000-01, Delhi’sindustrial sector grew at 5.7 per cent per annum.

Being the national capital, Delhi is one of the mostimportant locations for businesses and investors.It is also one of the biggest consumer markets in thecountry. Delhi’s National Capital Region comprisesNoida, Gurgaon, Faridabad, and Ghaziabad, and it is the principal business and commercial centre of north India.

The State’s Gross State Domestic Product at currentprices increased from US$ 15.9 billion in 2002-03 to US$ 17.8 billion in 2003-04, registering a growth

Delhi - Sectoral Contribution to GDP

1%

22%

77%

Services

Agriculture

Industry Source: Delhi Economic Survey 2003-2004

INFRASTRUCTURE

and 44 special clinics.At 40,000 beds, about 1700 newbeds will be added in Delhi hospitals during 2005-06.

Access infrastructure

The road network in Delhi is one of the mostdeveloped in the country.The total length of roads in Delhi approximates over 28,508 km. Delhi’s roaddensity is the second highest in the country with1,739 km per 100 sq km, as against the nationalaverage of 74.73. Roads are the principal mode of transport in Delhi and a number of projects areunderway to improve the existing road network in the state. During 2003-04, the state governmentcompleted the construction of 10 flyovers.

With the opening of the third corridor in December2005, Delhi Metro is being used by more than 0.7million commuters daily. Delhi is a major railway hubwith four main railway terminals and eight railcorridors that bring in more than 350 passengertrains and 40 goods trains into the metro everyday.

The Delhi Metro Rail Corporation (DMRC) isimplementing the Mass Rapid Transit System (MRTS);a non-polluting and efficient rail based integratedtransport system. Over US$ 2.3 billion have beeninvested in the first phase of the project, which willcover 65 km. Around US$ 2 billion will be invested in the second phase of the project, which is expectedto be completed by 2008.The Delhi government plansto strengthen the regional rail network of Delhi withan investment of US$ 500 million.The project willinvolve building 62 km of integrated rail-bus corridorsto connect different points in Delhi with its suburbs.

Delhi has also attracted private investment fordevelopment of transport infrastructure.The NoidaToll Bridge Company owns and operates the 5.5 km,8-lane toll bridge that connects Delhi to Noida.The

Social infrastructure

Delhi has a population of 16 million (Census 2001).It is the sixteenth most populated state in thecountry with a population density of 9,340 personsper sq km, the highest in India.

The population growth rate in Delhi stood at 46.8 per cent during 1991-2001, higher than thenational growth rate of 21.3 per cent in the sameperiod, a clear reflection of migration into Delhi due to availability of economic and employmentopportunities in the state.

Almost the entire population of Delhi lives in urbanareas. Literacy rate in Delhi has increased from 75.3 per cent in 1991 to 81.67 per cent in 2001.This is significantly higher than the national literacyrate of 65.38 per cent. Delhi’s educational networkfocuses on professional training and provides a talentpool for the large service sector in the state. Delhi is home to some of India’s best academic institutionssuch as the Indian Institute of Technology (IIT),one of India’s best-known engineering colleges andthe All India Institute of Medical Sciences (AIIMS),India’s premier medical research centre.

Delhi has 13 universities, deemed universities, 63colleges for general education, 81 colleges forprofessional education, 151 Technical institutes, 19 ITInsitutes and 2 Institutions of national importance.The construction of a new engineering college forwhich a sum of US$ 4.36 million has been sanctionedwill be started in 2005-06.

Delhi has some of the best health facilities in thecountry with 15,000 doctors, 8000 chemists, 87hospitals, 7 primary health centres, 2,500 diagnosticlaboratories, 993 dispensaries, 209 maternity centresand sub-centres, 5 polyclinics, 559 nursing homes

DELHI PAGE 11

project has been executed with an investment of US$ 100 million through public private partnership.Similarly, a consortium of Jaiprakash Group and DS Group is building the 28-km, US$ 120 million Delhi-Gurgaon expressway.The eight-lane tollexpressway is expected to be operational by 2005.The Delhi government has signed a Memorandum ofUnderstanding with Infrastructure Leasing & FinancialServices Ltd (ILFS) to develop a 64 km elevated ringroad in Delhi through public-private partnership withan investment of over US$ 600 million.

Delhi has the second largest airport in the country,which serves as the principal aviation gateway for thenorthern region.The airport handles over 9.7 millionpassengers and over 300,000 tonnes of cargo annually.Airports Authority of India (AAI) is in the process of restructuring and modernising Delhi’s internationalairport through private sector participation.Theselection process for identifying the private player is currently underway.AAI has already received theExpressions of Interest and the selection process is expected to be complete in 2005.

Delhi – Growth in air traffic

Year 2001-02 2002-03 2003-04@

Passenger 8,499,209 9,096,548 9,745,788

Cargo 233,049 276,042 318,360

Source: Airports Authority of India

PowerDelhi has an installed electricity generation capacityof 994.5 MW. Most of the electricity generated in the state is through gas (more than 60 per cent).The remaining electricity is generated throughthermal sources.

Over 60 per cent of Delhi’s electricity consumption is met through purchases from other states.The peakdemand in Delhi during May 2004 was 3,500 MW and it is expected to reach 4,000 MW by 2008.

The consumption of electricity in Delhi has increased

from 6,415 million kWh in 1990-91 to over 9,713million kWh in 2001-02, indicating an average annualgrowth rate of over 4 per cent. Domestic andindustry represent the largest consumer categories,followed by commercial categories.

On a per capita basis, electricity consumption in Delhistands at 650 kWh per annum, significantly higherthan the national average of 355 kWh per annum.Thepower distribution in Delhi has been privatized and

Delhi – Trend in installed capacity and electricity generation

Source: Delhi Statistical Handbook 2002

1997 1998 1998 2000 2001 2002

MW

Mill

ion

Uni

ts

1240

1260

1280

1300

1320

1340

1360

500

0

1000

1500

2000

2500

3000

Installed capacity (MW)

generation (MU)

Delhi – Composition of electricity consumption

10%6%

31%

40%

13%

Industrial purposes

Commerical puposes

Domestic

Public water work and street lighting

Others Source: Delhi Statistical Handbook 2002

and domestic investors to locate themselves in thecity. Its status as a city-state provides ample businessand investment opportunities, particularly in theservices sector.

Delhi has developed 28 industrial estates through theDelhi State Industrial Development Corporation(DSIDC) and the Industries Department.

The Delhi government is building an IT park with an initial investment of US$ 16.2 million. It proposesto set up a World Trade Centre to promoteinternational trade and commerce at the same park.

DSIDC plans to develop industry specific industrialestates for apparels, gems and jewellery.The proposedgem and jewellery park will spread over 2 acres andwill be set up at Okhla. It will be developed throughprivate sector participation.The government hasacquired 2,100 acres of land to develop new industrialestates in Bawana and Holambi Kalan.The NewIndustrial Estate at Bawana has almost been fullydeveloped with the provision of necessaryinfrastructure. 18360 plots / flats have been allottedto the industrial units. 175 hectares of land fordevelopment of a new industrial area at Bhorgad has been acquired.

DSIDC is also in the final stages of acquiring land to set up an integrated freight complex near the international airport in Delhi.The freight complex will be a state-of-the-art facility with integrated activities and will focus on high value goods.

shown good results.The losses have come down by17% and load shedding in percentage of energyconsumption to less than 1% in 2004-05.

The Delhi government has approved a proposal to set up a 1,000 MW gas based power plant atBawana at an estimated cost of over US$ 800 million.The project is expected to be developed by privatecorporate players.

Communications infrastructure

Delhi has a well-established telecommunicationinfrastructure.The number of fixed line telephonesubscribers has grown from 0.9 million in 1995 toover 2 million in 2002.

Delhi – Growth in fixed wire telephones

Year 1995 1997 1999 2001 2002

Fixed wire

telephones 967 1,370 1,642 1,980 2,066

(in ‘000)Source: CMIE, Infrastructure Report 2004

The growth in cellular mobile telephony has beenequally strong. Cellular services were launched in Delhi in 1995. By June 2004, the number of subscribers had crossed over 6 million.

Industrial infrastructure

Being the most prosperous economy in the country,Delhi has benefited significantly from the rapideconomic growth in India during the past decade.

Its superior infrastructure and proximity to thecentral government is a major attraction for foreign

DELHI PAGE 13

STATE POLICY

distribution function was privatised through an international competitive bidding process.

The state government has committed to providefinancial support of over US$ 750 million to therestructuring programme during the transition phase.The Ministry of Power, Government of India, hasrated the restructuring of the sector in Delhi as thebest among all the Indian states.

Restructuring of government organisationsThe Delhi government has recognised the need to restructure local government organisations.A project to restructure the Delhi Jal Board (Delhi’s water & sewerage utility) is currently under consideration.The government is planning to restructure the Delhi Transport Corporation,the city’s provider of transport services as well as the Municipal Corporation of Delhi, by splitting it into three separate organisations.These steps areexpected to improve the quality of urban services inDelhi and boost its profile as a business destination.

Rationalisation of property regulationTo facilitate organised and regulated growth of property development in Delhi, the governmenthas reduced the stamp duty on immovable propertyfrom 13 per cent to 8 per cent.This is expected to lead to higher revenue generation for governmentthrough better compliance. Effective 2004,the property tax structure in Delhi has also beenreformed to introduce the unit area method of taxcalculation.The new system is considered equitable,progressive and efficient and should lead to bettercompliance and higher revenue generation.

Implementation of Value Added 9Tax (VAT)Delhi alongwith 21 states, implemented VAT w.e.f.March 2005.The revenue to Delhi exchequer haverisen by 33% owing to greater compliance.

Vision & Mission

The Delhi government aims to encourage investmentand achieve higher levels of economic development byfocusing on the following elements:

n Developing Delhi as a “world city” - Thegovernment is focused on developing good qualityphysical, social and economic infrastructure and attracting foreign and domestic businesses to the city

n Progressive governance and policies - Thegovernment aims to pursue progressive andreform-oriented policies to facilitate growth of business in the state

n Services sector orientation - The governmentintends to leverage Delhi’s urban economicstructure and existing services sector to attractbusinesses in service sector such as healthcare,hospitality, retail, tourism and IT / ITES, Biotech

n Environment friendly industrial development- The government aims to encourage relocation of existing industrial units to peripheral areas and permit only “green” industries conforming to environmental regulations

Industrial policy

To augment Delhi’s economic development,the state government has undertaken andimplemented various policy initiatives during the past few years.These include:

Electricity sector restructuringTo improve the efficiency of Delhi’s electricity supply, the state government has implemented a comprehensive restructuring plan by which theerstwhile state-owned utility was split into sixdifferent corporate entities covering generation,transmission and distribution. Subsequently, the

first pilot corridor for a high capacity bus system is being taken up and extended work on this corridorwill be started in 2005-06. Modern and fully builtCNG propelled 200 non-AC and 25 AC semi-low-floor / low-floor buses will be added in the DTCfleet.A feasibility study on the introduction of MonoRail System in Delhi will be ready by 2005-06.

Tourism policy

Tourism policy for Delhi aims at conservation of city’srich cultural heritage and employment generation.

Tourism Department has taken up the programme for restoration of denotified monuments under which30 monuments have already been restored and workon four monuments is likely to be completed duringthe current financial year. DTTDC is already workingon beautification of various existing lakes in additionto organising cultural festivals throughout the year to promote tourism.

The first phase of new campus of Delhi Institute of Hotel Management and Catering Technology hasreached the completion stage and the Institute willstart functioning from this new campus shortly.The construction of the second phase of the instituteis proposed to be taken up now in consultation withDTTDC.The second socio-cultural complex will be set up by DTTDC on BOT basis.

BhagidariThe spirit of partnership defines Delhi.A pioneer in proactive citizen centric governance, Delhi hasinitiated ‘Bhagidari’, and initiative which encouragescitizens’ proactive participation in governance, growthand development of the city.There is a Social Audit of Services under this initiative. Delhi is also thepioneer city to implement the Right to InformationAct.These efforts were recognized with UnitedNations Award for promoting Transparency,Accountability & Responsiveness in Public Science in May 2005.

Environment improvementRecognising the adverse effects of pollution on publichealth, the Delhi government has taken a number of steps to reduce air pollution in the city.The entirepublic transportation fleet in Delhi has been modifiedto use Compressed Natural Gas (CNG), instead of petrol and diesel.The government has implementeda project to create a citywide natural gas grid to make available CNG to vehicles.The governmenthas phased out the old vehicles from Delhi’s publictransport fleet to reduce pollution. It has alsoordered relocation of over 26,000 industrial units to peripheral areas of the state.

Compared to 1997, carbon monoxide levels in Delhihave declined by 32 per cent and sulphur dioxidelevels by 39 per cent. In 2003, Delhi won the US Department of Energy’s Clean City award in recognition of the government’s efforts to curbenvironmental pollution.

e-Governance The Delhi government has implemented IT in different spheres of governance.The governmenthas given particular emphasis to adopting IT forimproving citizen services. It has introduced on-lineprocessing of requests relating to ration cards,election cards, birth and death certificates, vehicleregistration certificates and driving licences.

Infrastructure policy

Government of Delhi has already approved thesecond phase of Delhi Metro. Delhi Government has completed construction of 12 flyovers during this year and work on construction of three moreflyovers is in progress. Construction of a new bridgeover Yamuna River has been started.The work for widening of Ring Road from 6 lanes to 8 lanes has commenced.

Construction of 5 new flyovers and 5 foot overbridges with the provision of ramp and escalators willbe started in 2005-06.Work on construction of the

DELHI PAGE 15

BUSINESS OPPORTUNITIES

and recreational facilities in south Delhin Mahatta Towers is developing a 200,000 sq ft

shopping mall in east Delhin The Unity Group is developing two shopping cum

entertainment complexes in west Delhi, with an area aggregating 270,000 sq ft

n Another 900,000 sq ft shopping cumentertainment complex is expected to come up insouth Delhi with an investment of US$ 80 million.

TourismTrade, hotels and restaurants account for 18.7 percent of Delhi’s state domestic product, contributingUS$ 1.85 billion in 2002-03.

Delhi is the second most important destination forforeign tourists. 15.3 per cent of foreign tourists who come to India visit Delhi.The city offers touristsa rich mix of architecture, heritage sites, museums,art galleries and religious places, and is home to twoof the India’s most important heritage sites, theQutab Minar and Humayun’s Tomb. Delhi’s proximityto Jaipur and Agra and advantages like goodaccommodation and transport connections make it an attractive tourist destination.

Delhi has 70 star hotels, which include 24 5-stardeluxe and 5-star hotels. Delhi’s hotel industry is alsoseeing fresh investment. Eden Park Hotels is investingUS$ 22 million in the renovation of Qutab hotel,while US$ 34 million is being invested in Kanishkahotel.The state government plans to further developtourism through information centres, pilgrimage tourpackages and tourist sports complexes.

Apparels Production of apparels and dressing materialscontribute about 38 per cent to Delhi’s industrialoutput. In 2002-03, apparel production in Delhi stoodat over US$ 900 million. Delhi is also an important

Key industries

Retailing and leisureA recent study by NCAER reveals that Delhi is thefastest growing consumer market in India. It is thelargest market for high-end consumer durables suchas colour televisions, scooters and refrigerators.Delhi is also India’s largest car market.

Delhi has been rated as the second most prosperous city in the country and the second largest market of consumer goods. Over 25 per centof the country’s super rich families live in Delhi.The state also has the highest concentration of households with an annual income above US$ 110,000. Its per capita income is the highest in Northern Indian States.

Food, clothing and entertainment account for over 40 per cent of Delhi households’ discretionaryspending which provides a huge opportunity for retailing and leisure industry. Recently, thegovernment extended the timings of prime shoppingcomplexes and plazas to facilitate furtherdevelopment of retail industry in the state.The government is in the process of privatising therecently constructed cultural centre in east Delhi.Delhi has a number of well-established shopping areas and complexes and a number of large-scaleretail and leisure / entertainment projects are beingexecuted currently. Delhi is projected to have 35 malls over the next few years.

n The DLF Group, the prominent Indian urbanhousing development company is developing a 900,000 sq ft shopping cum entertainmentcomplex in south Delhi which is expected to be completed by 2006

n Ambience Developers is developing a 359,657 sq ftcomplex comprising of shopping mall, food courts

Delhi has attracted industrial investment in sectorssuch as apparel and dress material, publishing andprinting of recorded media, food and beverages, andradio, television and communication equipment.

Exports

Delhi is the third largest exporter in Indiacontributing 6.2 per cent to India’s total exports.In 2002-2003, Delhi exported goods worth US$ 3,514 million.

Foreign Direct Investment Delhi is the second most favoured destination forForeign Direct Investment (FDI) in India. Between1991 and 2004, Delhi attracted over US$ 7.8 billionof foreign direct investment. Delhi was the secondmost favoured destination for FDI, accounting for12.07% of total FDI into India. (Sources CMIE, SIAnewsletters,Annual Survey of Industries.

The key sectors attracting FDI in Delhi aretelecommunication, transportation, electricalequipment including software, services sector and hospitality.

Potential hubs for investment

Delhi offers several investment advantages to a number of emerging sectors such as healthcare,financial services, IT / ITES and Biotech.

centre for manufacturing and sourcing of apparels forexport.A number of large buying houses are locatedin the city. Prominent players such as Wal-Mart, Gapand JC Penny are likely to establish a presence in thecity as the post-quota regime for textile trade comesinto effect in January 2005.

The presence of National Institute of FashionTechnology makes available qualified manpower forthe apparel industry in the city.Availability of qualityexhibition space and other marketing facilities areadded advantages.

Investment

There were 129,000 industrial units in Delhi withinvestment of over US$ 560 million till 2001.Theseunits generated production worth US$ 1.4 billion.Investments in Delhi were US$ 6.9 billion (April 2005); with new investments at US$ 3 billionaccounting for 2.88% of All India figures.

Share of industries in net value addition

9%

8%

28%30%

13%

12%

Publishing, printing of recorded media

Food product and beverages

Apparel and dressing material

Radio, television and communication equipment

Chemical and chemical products

Others

Source: Annual Survey of Industries, 2002-2003

Delhi – Cumulative FDI

Source: Secretariat for Industrial Assistance reports

US$

bill

ion

1996 1997 1998 1999 2000 2001 2002 20030.0

5.001.000

1500.02000.02500.03000.03500.04000.04500.05000.0

DELHI PAGE 17

is projected to grow from US$ 15 billion to over US$ 33 billion in the next decade.The potential for additional business from healthcare tourism is estimated to be US$ 2 billion. Delhi is well placedto garner a substantial part of this potential market.

The cost of medical treatment in Delhi is significantlycheaper than in the developed economies.It is estimated that many high-end treatments cost60-70 per cent less in India than in the United States.Participants from over 55 countries visit Delhi fortreatment for various specialities. It has recentlyrecieved the JSI USA Certification.

Apollo Group’s Indraprastha Apollo Hospital has beenrecognised as a leading tertiary care facility in NorthIndia, offering a wide range of super specialty services.Almost 10 per cent of Apollo’s patients areforeigners. Recently,Apollo introduced an airambulance service to ferry critically ill patients fromas far as 1,000 km. Max Healthcare is expanding itshospital network by implementing a 375-bed hospitalin south Delhi.The Escorts Heart Institute andResearch Centre has a 332 bed facility providing a gamut of specialised medical services. Recently,Escorts has signed a contract with an UK-basedinsurance company to treat patients from the UK in India.

BiotechYes! Bank has been appointed as consultant for developing a Biotech Park by DSIDC.

HealthcareDelhi’s healthcare infrastructure is one of the bestavailable in India. Over the years, a substantially higherlevel of capital expenditure on the sector hasfacilitated its development and Delhi has emerged as the principal centre for advanced medical care in northern India.

The number of hospital beds in Delhi increased from23,000 in 1995 to over 40,000 in 2005 with theprivate sector accounting for almost 40 per cent of these.The private healthcare market in India

FDI - Sectoral break up

8%

7%

4%

17%

54%

10%

Transportation

Electrical equipment including software

Telecommunication

Service sector

Hotel & tourism

Others Source: Secretariat for Industrial Assistancenewsletter, Annual Issue 2002

PROFILE OF KEY PLAYERS IN DELHI

by the Apollo Hospitals Group, jointly with theGovernment of New Delhi. It is a 695 beddedhospital, with the provision for expansion to 1000 beds in future.

Bharti GroupThe Delhi based Bharti group owned by Mittalsestablished in 1985 has been a pioneering force in the telecom sector with many firsts andinnovations to its credit.The group is the first mobileservice in Delhi, first private basic telephone serviceprovider in the country, first Indian company to provide comprehensive telecom services outsideIndia in Seychelles and first private sector serviceprovider to launch National Long Distance Services in India. Bharti Enterprises also manufactures andexports telephone terminals and cordless phones.Apart from being the largest manufacturer oftelephone instruments, it is also the first telecomcompany to export its products to the USA.

DLF GroupDLF Group is a leading name in India’s real estateindustry. The Group’s range of portfolio spanningacross the residential, commercial, retail,entertainment complexes reflects an expertisegathered over a period of six decades.

DLF Universal Ltd is a flagship company of the DLFGroup, a Delhi-based real estate developer. DLF hasdeveloped 21 urban colonies in and around Delhi.Currently, DLF is building a 900,000 square feetshopping cum entertainment complex south Delhi.DLF has also submitted an expression of interest to modernise the Delhi Airport.The DLF Centre in the heart of New Delhi, is an area still reminiscentfor its old world charm. DLF Retail, in associationwith DT Cinemas, the group’s entertainment unit,is developing shopping arcades and multiplexes.

Ansals Group The Ansals Group is a premier property developmentcompany building commercial and residential areas.Ansals remain the pioneers and introducers of theconcept of high rise commercial complexes in Delhi.The Group has marched on an unhindered andunabated path in changing the skyline of not onlyDelhi, but subsequently of several other cities of India and abroad. Ansal Group comprises of 35 companies.The main flagship companies of thegroup are Ansal Properties & Industries Ltd,AnsalHousing & Construction Ltd. and Ansal Buildwell Ltd.Today Ansal Group’s yearly turnover is around US$ 74.5 million and its multiple projects in handexceed US$ 680 million.

Amway IndiaAmway India is a wholly owned subsidiary of Amway Corporation, USA.Amway Corporation is a 42-year-old company, and is among the largestdirect selling companies in the world. It has a presence in 80 countries & territories. Established in 1995,Amway India commenced commercialoperations on May 5th, 1998.Amway has invested in excess of US$ 32 million in India.

Apollo GroupApollo Hospitals Group is the acknowledged leader in bringing super specialty world-class healthcare to India. It is presently the largest integratedhealthcare company in Asia. Major thrust fields of activities of the group consist of Hospitals andClinics, Hospitals Consultancy, Information Technologyincluding internet based technology,Telemedicine,Education and Training,Virtual Medical University,Home Healthcare and Pharmacy Retailing.

Indraprastha Apollo functioning from July 1996 is thelargest corporate hospital outside the United States.It is the third super specialty tertiary care hospital set

DELHI PAGE 19

consolidated turnover of US$ 18.6 billion. HEToperates one of the four cellular mobile telephonynetworks in Delhi. In August 2004, HET recorded 1.3 million subscribers.

IBMIBM has been present in India since 1992.Today,the company has established itself as one of theleaders in the Information Technology (IT) Industry.India Research Laboratory, Delhi, one among 8 facilities worldwide located in the sprawling campusof Indian Institute of Technology, Delhi, has researchinitiatives underway covering areas like e-Commerce,Knowledge Management, Bio-Informatics, GridComputing,Autonomic Computing etc.

Marubeni CorporationMarubeni, the Japan based trading house, has theheadquarters of its Indian operations in Delhi.In India, Marubeni is involved in trading in textiles,chemical and machinery. It has made investment in the electricity, steel and oil & gas sectors. Marubeniwas also part of the consortium that constructed the Delhi-Noida bridge project.

Max India The core business of Max is healthcare and lifeinsurance. Other businesses include IT, clinical studies,telecom and specialty plastic products; healthcare(Max Healthcare), Life Insurance (Max New York LifeInsurance), IT / IT enabled services (Max Ateev, MaxHealthScribe, Comsat Max), Clinical Studies (NeemanMedical International). Max Healthcare has a multi-specialty hospital in North Delhi, two Max clinics anda Max medical centre across Delhi. Max is the firstprivate healthcare clinic to receive a US$ 20 millionloan from Asian Development Bank. Max has investedUS$ 100 million to develop two other hospitals in south and east Delhi.The hospital in south Delhi is a 375 bed facility.The hospital in east Delhi is intended to be a 134 bed super-specialty facility.Max New York Life is a joint venture between MaxIndia Ltd and New York Life, a Fortune 100 company.It is one of India’s leading insurance companies.

Escorts GroupEscorts is a leader in the cardiac care segment in Delhi, with two of its hospitals catering to patientswith heart ailments.The company is expanding itsoperations in these two hospitals from a total of 370 beds to about 570 beds.The company hasidentified three core businesses that will be its focusareas as part of its plans to restructure its operations.These include cellular telephony, healthcare and agri-machinery.The Escort Heart Institute andResearch Centre located in Delhi is a leading centreof excellence in the fields of cardiac surgery,interventional cardiology and cardiac diagnostics.Its state-of–the-art infrastructure and equipment is the best in India.The institute has 332 beds,9 operating rooms and carries out 15,000 proceduresevery year.

Fortis HealthcareFortis Healthcare is a part of the Ranbaxy group,India’s leading pharmaceutical company. Fortis is in the process of developing a wide network of medical facilities in Delhi. Fortis has taken over themanagement of Jessa Ram Hospital, one of the leadingprivate hospitals in west Delhi.

Fortis plans to set up a hub hospital, a high-end superspecialty hospital on the west Delhi plot aimed at attracting patients from overseas countries.The proposed Delhi hospital will be the third super specialty hospital project of Fortis.

Hindustan Lever Ltd (HLL)Hindustan Lever Ltd is India’s largest Fast MovingConsumer Goods company, touching the lives of twoout of three Indians with over 20 distinct categoriesin Home & Personal Care Products and Foods &Beverages. HLL is also one of the country’s largestexporters; it has been recognised as a Golden SuperStar Trading House by the Government of India.

Hutchison Essar Telecom (HET)Hutchison Essar Telecom is a part of the HutchisonWampoa group, a Hong Kong based corporation with

major Indian towns and cities.The network currentlycomprises of 2000 dealers & distributors, 40 SonyWorld outlets, 60 Sony Exclusives and 12 directbranch locations as on October 2004. SonyCorporation produces Consumer Audio and Videoproducts. Sony is also an industry leader in recordingmedia & storage devices such as Micro Vaults.

SpectramindWipro Spectramind provides a broad range of services from customer relationship management,back office transaction processing to industry specificsolutions.Wipro Spectramind was awarded the “topcall centre company” award at the Voice & Dataawards, 2002 and customer performance centre(COPC) certification in 2003.

Tata Power LtdTata Power is a premier integrated power companywith an installed generation capacity of 2,278 MW.The company has operations across India and invarious Middle-East countries. In Delhi,Tata Powercontrols North Delhi Power Ltd, the electricitydistributor for north and north-west areas of Delhi.

TCSTata Consultancy Services (TCS) is among the leadingglobal information technology consulting, services andbusiness process outsourcing organisations, offeringservices to clients across 55 countries. Pioneer of the flexible global delivery model for IT services,TCS focuses on delivering technology-led businesssolutions to its international customers across varied industries.

Headquartered in Delhi.The company recorded a 122 per cent growth in its premium income in its financial year ending March 2004.

Mitsui IndiaMitsui India is a subsidiary of Mitsui & Co., Japan.Mitsui India has its headquarters in Delhi. Mitsui’sbusiness activities in India include export of iron oreand finished iron and steel products, textiles, marineproducts to Japan and other parts of the world. Mitsuihas also been successful in finding a market for theexport of chemicals from India. Mitsui has also playeda special role as project organizer for a variednumber of projects in the Power Sector, SteelIndustry, Port Development, and Refinery Projects.

Reliance Energy Ltd Reliance Energy Ltd (REL) is India’s leading integratedelectricity utility company in the private sector.REL generates and distributes electricity across a number of states in India. REL owns two electricitydistribution companies in Delhi with an aggregateconsumer base of 1.7 million in south, central andeastern parts of Delhi, covering a population of over7 million. REL will invest over US$ 660 million overthe next three years to modernise the electricitydistribution network in Delhi.

Shell IndiaShell India is a part of the Royal-Dutch Shell group,one of the largest energy companies in the world.Shell India has its headquarters in Delhi.The companyis involved in a range of energy projects in India, withcommitted investment of US$ 750 million. Shell’sprime investment in India is the construction of a liquefied natural gas (LNG) terminal. Shell Indiahas interests in lubricants and petrochemicals. Shell is also planning to commence fuel retailing in India in the near future.

Sony IndiaSony Corporation, Japan set up Sony India in 1995 as a 100 per cent subsidiary. Since then, the company’ssales and distribution channel has penetrated all the

DELHI PAGE 21

DOING BUSINESS IN DELHIObtaining approvals

An indicative list of approvals with timeframe for setting up business in Delhi

Department

Industries

Incentives

Revenue

DSIDC/DFC

Agency

Directorate of Industries

Export Promotion Council

Commissioner of Industries

DSIDCDFC

Timelines

Registration of small scaleindustries: 30 days

Registration with export council:7 days

Grant of extension forcompletion of construction on plot/permission for leasing/sub-letting: 30 days

Sanction of loan: 30 days

Note: Exchange rate used is INR 47 per US$

Cost of setting up business

An indicative table on cost of setting up business in Delhi

Indicator Value (in US$)

Industrial land (per sq m) 47.70 - 95.40Office space rent (per sq ft per month) Central Business

District: 1.14 - 3.25Secondary BusinessDistrict: 0.76 - 0.95

Residential rent (for a 2,000 sq ft house, per month) 574.46 - 765.95

5-star hotel room (per night) 50 - 200 per night

Electricity (per kWh) 0.09

Water (per 1,000 litres) Commercial: 0.31Industrial: 0.42

DSIDC designated as nodal agency for all Investment flows into Delhi.

Information on markets and opportunities forinvestment in Delhi can also be obtained fromConfederation of Indian Industry (CII), which workswith the objective of creating a symbiotic interfacebetween industry, government, research bodies anddomestic and international investors.

Confederation of Indian Industry (CII)State OfficePlot No 249 F, Udyog ViharPhase IV, Sector 18Gurgaon 122 015INDIATel +91-124-4014072Fax +91-124-4014070Email charu.mathur@ciionline.orgWeb www.ciionline.org

Contact for information

Information on investment opportunities can beobtained from the following offices in the state.

Directorate of IndustriesIndustries Department,Udyog Sadan,Plot No 419Functional Industrial Estate,PatparganjDelhi - 110092INDIA 110 092Tel +91 11 22157011Fax +91 11 22157022

Delhi Electricity Regulatory Commission (DERC)33 KV, C Block ShivalikMalviya NagarDelhi 110 017INDIATel +91 11 26673608Fax +91 11 26673608Web www.dercind.org

Department of Information Technology (DIT)Room no 903, 9th levelDelhi SecretariatDelhiINDIATel +91 11 2339 2254Fax +91 11 2339 2077

Delhi State Industrial Development Corporation(DSIDC)N Block Bombay Life BuildingConnaught CircusNew Delhi 110 001INDIATel +91-11-23356581Fax +91-11-23710666Web www.dsidc.org

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The India Brand Equity Foundation is a public-private partnershipbetween the Ministry of Commerce & Industry, Government of India andthe Confederation of Indian Industry.The Foundation’s primary objective

is to build positive economic perceptions of India globally.

India Brand Equity Foundationc/o Confederation of Indian Industry

249-F Sector 18Udyog Vihar Phase IV

Gurgaon 122015 HaryanaINDIA

Tel +91 124 501 4087, 4060 - 67 Fax +91 124 501 3873Email ajay.khanna@ciionline.org

Web www.ibef.org