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Investment Climate in Jammu and Kashmir

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Page 1: Investment Climate in Jammu and Kashmirinvestnorth.in/Editor/ckfinder/core/connector/userfiles/files/JK... · an 8 MW wind power project at Bidda (Reasi) ... • Aircel • Tata

Investment Climate in Jammu and Kashmir

Page 2: Investment Climate in Jammu and Kashmirinvestnorth.in/Editor/ckfinder/core/connector/userfiles/files/JK... · an 8 MW wind power project at Bidda (Reasi) ... • Aircel • Tata
Page 3: Investment Climate in Jammu and Kashmirinvestnorth.in/Editor/ckfinder/core/connector/userfiles/files/JK... · an 8 MW wind power project at Bidda (Reasi) ... • Aircel • Tata

Investment Climate in Jammu and Kashmir

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Contents

Economic and Demographic Profile 1 Economic Profile 1 Demographic Profile 2Physical Infrastructure 2 Power 2 Roads 3 Railways 4 Airports 4 Telecom 4Social Infrastructure 4 Health 4 Education 4Industrial Profile 5Land Availability 6 Industrial Land 6 Agricultural Land 6Manpower Availability 7State Policies and Incentives 7Investments in the State 7Looking Ahead 8Annexure : Policies 9

• All data is at constant (2004-05) prices unless explicitly stated otherwise

• GSDP stands for Gross State Domestic Product

• CSO data accessed on 18 October, 2012

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Jammu and Kashmir is blessed with enchanting natural beauty with its towering snow-capped mountains, green

meadows, placid lakes and lush green forests. The state also has rich resources of water, agro-resources, forests,’

herbal plants and minerals. Tourism and agro-based activities are the mainstay of the economy and offer

tremendous investment potential.

Advantage Jammu & Kashmir :

• Immense tourism potential in the state, given its breathtaking natural beauty and spiritual tourism destinations

• With a favourable climate for growing a wide variety of fruits, the state holds immense potential in horticulture,

both in processing and related infrastructure

• Vast export potential in handicrafts with more than 80 percent contributed by carpets and woolen shawls

• Famous for small-scale and cottage industries such as carpet weaving, silks, shawls, basketry, pottery, copper and

silverware, paper-mâché and walnut wood

• Skilled weavers provide a basis for setting up of textile units

• Emphasis on non renewable sources of energy with enabling policy framework like Policy for Development of

Micro/Mini hydro-power Projects 2011 and Solar Power Policy 2010

• Untapped hydro-power potential of more than 20,000 MW

• Endowed with rich deposits of coal, lignite, limestone, gypsum, bauxite, magnetite etc

• State provides dust free environment, ideal for manufacturing of printed circuit board, assembly of precision

parts, etc

• Ongoing mega project of laying 345 km Jammu-Udhampur-Katra-Quazigund-Srinagar-Baramulla railway line to

build connectivity through difficult mountain terrain

• Many fiscal incentives available to industry under the Central Special Package 2002 and the Industrial Policy

2004

EXECUTIVE SUMMARY

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Source: CSO

Figure 2 : Key Economic facts

Key Economic Indicator (2011-12) Value

GSDP Rs 410 billion

Growth in GSDP 6.5 percent

Per capita income Rs 29,195

National Per Capita Income Rs 37,851

1

Economic & Demographic Profile

Economic profile

The state’s economy has shown visible growth during recent years. The GSDP has increased to Rs 410 billion in 2011-12 from Rs 273 billion in 2004-05 registering a CAGR of 6.0 percent.1

Figure 3 : Contribution of different sectors towards the economy of Jammu & Kashmir

Source: CSO

The services sector occupies a predominant place in the state’s economy contributing 53.6 percent to GSDP followed by industry at 25.9 percent and agriculture & allied at 20.5 percent.

Figure 1: Growth of GSDP of Jammu & Kashmir

Source: CSO

1 CSO

289 306326 347

362385

4105.8 6.0

6.4 6.5

4.5

6.2 6.5

0

2

4

6

8

0

100

200

300

400

500

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

In p

erce

nt

In b

illio

n

28.1

28.2

43.7

2004-05

Agriculture Industry Services

20.5

25.9

53.6

2011-12

Agriculture Industry Services

28.1

28.2

43.7

2004-05

Agriculture Industry Services

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Figure 4 : Key Demographic Indicators

Demographic profile

The total population of Jammu and Kashmir is 12.5 million and the population density stands at 124 per sq km.2

Physical Infrastructure

Power

The state has a total installed power generation capacity of 2,356 MW which includes 1,094 MW under state utilities and 1,262 MW under central utilities. Of the total installed capacity, the contributions from various sources are3:

• Hydro power – 65.3 percent • Thermal power – 25.9 percent • Renewable Energy sources – 5.5 percent • Nuclear power – 3.3 percent

Source: Census 2011 (Provisional)

2 Census 2011 (Provisional)3 CEA, August 2012; including allocated shares in joint and central sector utilities

Key indicators Value

Population 12.5 million

Population size (Males) 6.6 million

Population size (Females) 5.9 million

Population size (Urban) 3.4 million

Population size (Rural) 9.1 million

Density of population (persons per sq km)

124

Literacy rate 68.7 percent

Male literacy rate 78.3 percent

Female literacy rate 58.0 percent

Sex ratio (females per 1000 males) 883

Figure 5 : Peak demand – peak supply position in the state

Source: CEA

2

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Source: Jammu & Kashmir State Power Development Corporation Ltd

Figure 6 : Upcoming Power Projects

Project Name Sector Capacity (MW)

Uri-II Central 240

Sewa-II Central 120

Nimo Bazgo Central 45

Chutak Central 44

Baglihar Stage-II State 450

To address the growing demand for power, the state proposes to augment generation capacity. 3,100 MW of new generation capacity is envisaged in the 12th plan (2012-2017).

The state government is focusing on renewable energy. Some of the initiatives include setting up of 8 district level Energy Parks; an 8 MW wind power project at Bidda (Reasi) has been submitted to the Ministry of New and Renewable Energy, Government of India, for sanction and installation of solar power plants at 200 institutional locations including health and educational institutions.

Roads

Roads form the backbone of the transport network in Jammu & Kashmir, a state dominated by an undulating topography. The total road length maintained by the state’s Public Works (R & B) department is 26,711 km4. The road density is 39.5 km per 100 sq km. Given its strategic location, the central government has accorded a high priority to the development and upgradation of the state’s vital road network.

Key initiatives to augment the road infrastructure in the state include 5:

• Four-laning of NH1A from Jammu to Srinagar • Construction of 2 major tunnels on National Highway at Nashri Kud (8.5 km long) and at Qazigund- Banihal (9.2 km long) • Feasibility study for ring roads in Jammu and Srinagar being commissioned • Proposal for construction of tunnels taken up with Government of India » 5.50 km Singhpora Vailoo Tunnel » 4 k m Lolab Bandipora Tunnel » 5 km tunnel from Chatapani to Zaznar on Mughal Road » 5 km tunnel at Chhattar-gala of Basohli- Bani-Bhaderwah Road • 84 km long Mughal Road connecting Kashmir valley with Jammu division through Rajouri to be completed by March 2013.

Source: www.nhai.org/statewise1.asp ; Economic Survey, Jammu and Kashmir, 2011-12

Figure 7 : Road Network in the state

Road Type Road Length (in km)

National Highways 1,245

Total road length maintained by Public Works Department

26,711

4 Economic Survey, Jammu and Kashmir, 2011-125 Economic Survey, Jammu and Kashmir, 2011- 12

Photo : www.dailyexcelsior.com

3

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4

Railways

Jammu & Kashmir has an existing railway network of only 256 km owing to its hilly terrain. A 345 km long railway line is planned to connect the Kashmir valley with the rail network of the country. This line, Jammu – Udhampur –Katra – Quazigund-Srinagar-Baramulla railway line, is the biggest ever mountain railway project in the history of independent India.6 The project has been sub divided into three sections – Udhampur – Katra (25 km); Katra – Qazigund (148 km); Qazigund – Baramulla (119km). The first phase of the project between Qazigund and Banihal involving an 11 km long tunnel through the Pir Panjal range is expected to be commissioned soon. The entire project is expected to be completed by 2017-18.

Airports

State has 3 airports - Srinagar, Leh and Jammu. Srinagar airport, Sheikh-ul-Alam airport, has been upgraded to an international airport. Jammu and Leh airports are also being upgraded. Srinagar Airport recorded passenger traffic of 1.6 million in 2011-12, while Jammu reported 888,595 passengers.7 Another airport at Kargil headquarters has been connected by short-haul service.

To promote tourism in the state, a proposal for air taxi services between Katra-Bhaderwah is also under consideration.

Telecom

Jammu & Kashmir has 6.5 million subscribers. The teledensity in the state is 54.8 percent.8

Wireless and wireline service providers in the state include :

• Bharat Sanchar Nigam Limited (BSNL) • Airtel • Vodafone • IDEA • Aircel • Tata Teleservices • Reliance Communications

Social Infrastructure

Health

Jammu & Kashmir has a network of 3,319 health institutions in the primary and secondary healthcare sector. This includes 20 District Hospitals, 86 Sub District Hospitals/Community Health Centres (CHCs)/Trauma Hospitals, 650 Primary Health Centres (PHCs) & Allopathic Dispensaries and 2,474 Sub Centres/Medical Aid Centres besides 89 others9.

Education

Education is a high priority area for the state government. The state provides free education to students up to the university level. Seasonal schools have been opened for people in the hilly areas and for the under-privileged.

The state has 23,454 government schools, including 14,453 primary schools; 6,976 middle schools; 1,418 high schools and 607 higher secondary schools, besides 4,728 private schools.

The state has 95 government degree colleges. Some of the prestigious higher education institutions include:

• National Institute of Technology, Srinagar • Shri Mata Vaishno Devi University, Katra • Islamic University of Science & Technology, Awantipora • Baba Ghulam Shah Badhshah University, Rajouri • Sher-e-Kashmir University of Agricultural Sciences & Technology, Srinagar • University of Jammu, Jammu • University of Kashmir, Srinagar

6 Economic Survey Report, Jammu and Kashmir, 2011- 127 Traffic News, March 2012, Airport Authority of India8 The Indian Telecom Services Performance Indicators (January-March 2012), Telecom Regularity Authority of India9 Economic Survey, Jammu Kashmir, 2011- 12

Source: The Indian Telecom Services Performance Indicators (January-March 2012), Telecom Regularity Authority of India (TRAI)

Figure 8 : Key Telecom facts for the State

Key Indicator Value

Total subscribers 6.5 million

Wireless subscribers 6.3 million

Wireline subscribers 0.2 million

Total teledensity 54.8

Urban teledensity 119.5

Rural teledensity 30.8

Key Indicator Value

Birth Rate* 18.3

Death Rate* 5.7

Infant Mortality Rate** 43

Figure 10 : Key health indicators

Source: Sample Registration System December 2011 Note: * per 1000 population ** per 1000 live births

Institutions Number

District Hospitals 20

Sub District Hospitals/CHCs/Trauma Hospitals

86

PHCs/ Allopathic Dispensaries 650

Sub Centres/Medical Aid Centres 2, 474

Total Bed strength (Tertiary care hospitals) 4,863 beds

Figure 9 : Key health infrastructure

Source: Economic Survey Report, Jammu and Kashmir, 2011- 12

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5

Industrial Profile

Jammu & Kashmir State Industrial Development Corporation is the nodal agency for promotion and development of medium and large-scale industries in the state. These industries are mostly in the state public sector with a few units under the control of the Central Government. Post the announcement of the Central Package 2002 and the State Industrial Policy, 2004, more than 175 large and medium units have been set up in the state mobilizing investments of about Rs 54 billion and generating employment for 39,000 youth10. 1,170 small scale units have been formally registered as per Annual Plan 2012-13.

The thrust areas identified by the state government include food processing and agro-based industries, auto ancillaries, precision engineering, computer hardware and electronics, mineral exploration, eco-tourism, silk, handicrafts and leather goods.

The diverse agro-climatic conditions of the state offer a great potential for growing a variety of fruits, such as apple, almond, mango, litchi, cherry, apricot, plum, kiwi, olive, citrus etc. The overall production of fruit in the state was 2.2 million metric tonnes in 2010-11. Apple is the leading fruit of the state, with Jammu & Kashmir accounting for 57 percent of the national produce of apples. The state is the 6th largest producer of walnuts globaly and among the few places in the world where saffron can be cultivated. Pampore Tehsil (Pulwama) is famous for its high-grade saffron. The total production of saffron in 2010-11 was 80 quintals.

To promote horticulture, the state government is proposing to set up mega food parks and operationalising the International Trade Centre at Pampore. It also proposes to add 2,000 tubewells over the 12th plan (2012-17) creating an additional cultivable command area of 40,000 hectare.

The state’s vast climatic conditions are favourable for a variety of flowers, leading to scope for floriculture. Asia’s largest “Tulip Garden” established by State Floriculture Department also acts as a major tourist attraction.

Jammu and Kashmir offers skilled workforce for delicate handicraft items, ethnic products including carpet, embroidery, wood carving, fur & leather, woolen shawls, wood work, straw, willow and grass work, nomad crafts, ornaments, painting, stone craft, metal work, pottery etc. Carpet, embroidery and papier mache contribute significantly to employment generation and handicrafts output in the state. Kashmiri silk carpets are famous world over and earn substantial foreign exchange. Wood from Kashmir, popularly known as Kashmir willow, is also used to make high-quality cricket bats.

The tourism industry is one of the major contributors to the state’s economy. About 13.1 million tourists visited Jammu & Kashmir during 2011.11 Besides scenic beauty the state is also a popular pilgrimage centre. World famous tourist attractions in the state include Chashma Shahi Springs, Shalimar Bagh, the Dal Lake, Gulmarg, Pahalgam, Sonamarg, Ladakh, and Patnitop. Jammu is famous for its temples while Kashmir valley is known for its scenic beauty. The Ladakh festival in September and the Sindhu Darshan in June are popular events celebrated annually.

In order to promote the sector, the Government of Jammu and Kashmir has declared tourism as an industry and granted a number of concessions and incentives. The Government of India has agreed in principle to sanction 3 mega tourism projects, 1 each in Jammu, Kashmir and Ladakh. The state government on its part has undertaken major restructuring of its Department of Tourism including creation of two separate directorates one each for Jammu division and Kashmir division besides creation of 15 new development authorities for major tourist destinations.12

The cement industry has significant potential in Jammu & Kashmir. Kashmir has about 3,500 million tonnes of limestone reserves - the raw material for manufacturing cement. In terms of quality, this limestone is one of the best in the entire world.

The state’s exports comprise fruits and handicraft products. It is a leading exporter of pashmina and raffle shawls which are recognised the world over. Export of fruit outside the state during 2010-11 was 1 million metric tonnes which is 48.9 percent of total fruit production in the state. The value of export of handicraft products was Rs 10 billion during 2010-1113.

The key sectors in the state include tourism, handicrafts, cement, horticulture, sericulture and hydro power.

10 https://www.jandkplanning.com/index.php?option=com_content&view=article&id=2282&Itemid=281&lang=en&limitstart=811 http://tourism.gov.in/writereaddata/CMSPagePicture/file/marketresearch/New/Figures.pdf

12 Economic Survey of Jammu & Kashmir, 2011-1213 Economic Survey of Jammu & Kashmir, 2011- 12

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Land AvailabilityIndustrial Land

The state has 52 existing industrial estates under the purview of the Directorate of Industries and Commerce and State Industrial Development Corporation/Small Scale Industries Development Corporation Limited. In addition, 979 acres of land is being acquired for setting up 10 new industrial estates as well as to expanding the existing industrial estates in various districts of the state.

Industrial areas of the state include: • Electronic complex and software technology park at Rangreth• Khamoh industrial complex, Zainakote and Zakura industrial estates, Budgam and Samba; Gangyal industrial estate, Bari Brahmna industrial complex at Jammu; Industrial growth centre and export promotion industrial park at Kartholi at Jammu; Integrated infrastructure development project at Udhampur• Textile park at Kathua• Agri processing for apple at Srinagar and agri-processing zone for walnut at Jammu

The 12th Five Year Plan proposes establishment of land bank for industrial estates and upgradation of Infrastructure at existing industrial areas.14

Agricultural Land

The total geographical area of the state is 222,236 sq km. Net sown area accounts for maximum area under a particular land use type followed by forest land put to non-agricultural uses, barren land, permanent pastures and other grazing land in the state. Out of 1.2 million hectares of gross area sown; only 522 thousand hectares (43.6 per cent) were irrigated during the year 2010-1115.

14 www.pppinindia.com/infrastructure-jammu-kashmir.php; http://planningcommission.nic.in/plans/stateplan/Presentations12_13/Jammu1607.pdf15 Economic Survey, Jammu Kashmir, 2011- 12

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Manpower Availability

The state is actively working towards improving the quality of human capital. Currently, the state has 38 ITIs/ITCs with seating capacity of 4,197.

To increase the employability of its youth, the state government has undertaken following initiatives16:

• Skill Employment and Empowerment Scheme: A placement- linked, market driven skill training programme under PPP with an outlay of 2.6 billion will be implemented to benefit 50,000 to 1,00,000 youth over the next few years

• Special Industry Initiative under PPP for enhancing the skills and employability of 40,000 youth in the next few years

• A special scholarship scheme with an outlay of Rs 12 billion to benefit 25,000 students for general, engineering and medical studies over a period of 5 years • Indira Gandhi National Open University (IGNOU) proposes to launch two Regional Placement Centers (RPC) one each in Srinagar and Jammu

• The state government has also launched an interactive online portal named Udaan, which aims at disseminating job opportunities for 40,000 youth from the state

State Policies and Incentives In order to attract investment into the various sectors of the state and contribute to the development of the economy as a whole, the Government of Jammu and Kashmir has made several policy announcements. These policies have provided a roadmap for bolstering the industrial climate of the state and removed various road blocks which curtailed the industrial expansion. These policy documents also encompass investment incentives and schemes for the investors.

Please refer to Annexure for details on the policies.

Single Window Clearance Mechanism

With the objective of facilitating clearances for a new entrepreneur, a Single Window Clearance System has been set up.

Investment in the StateThe state received industrial investment proposals amounting to Rs 165.3 billion during the period August 1991 to May 2012. During the year 2011 the state has attracted investment intentions of Rs 15.2 billion.

Source: Economic Survey, Jammu and Kashmir, 2011- 12

Figure 11 : Land Utilization Pattern

Year Net Sown Area

Per Capita(Ha)

Gross Sown Area

Per Capita (Ha)

Gross Irrigated Area

Total Per Capita (Ha)

2010-2011

Jammu 378.56 0.071

Kashmir 350.00 0.05

Total 728.56 0.121

715.90 0.12

492.00 0.07

1,207.90 0.19

202.00 28.2

325.00 66.1

527.00 94.3

2011-2012

Jammu 378.56 0.071

Kashmir 350.00 0.05

Total 728.56 0.121

730.00 0.12

493.00 0.07

1,223.00 0.19

202.00 27.7

325.00 66.1

527.00 93.7

Institutes Numbers

Number of Government ITIs

37

Seating Capacity 4,087

Number of Private ITCs 1

Seating Capacity 110

Total ITIs/ITCs 38

Total Seating Capacity 4,197

Figure 12 : ITIs/ITCs (January 2012)

Source: Directorate General of Employment & Training, Ministry of Labour & Employment, Government of India

Year Numbers Filed

Proposed Investment (Rs billion)

Share of state in Northern Region proposed investments (percent)

Proposed Employment (Numbers)

2009 23 12.2 2.3 10,785

2010 23 12.3 1.7 3,417

2011 21 15.2 1.5 10,567

2012(May) 12 6.3 2.6 1,143

Source: SIA Statistics, Department of Industrial Policy and Promotion, Ministry of Commerce & IndustryNote: Investment in terms of Industrial Entrepreneur Memoranda (IEMs) filed, Letters of Intent (LOIs) issued and Direct Industrial Licenses (DILs) issuedNorthern Region includes the states of Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand and UT Chandigarh

Figure 13 : Investment Intentions in the state

16 http://pib.nic.in/newsite/erelease.aspx?relid=72572

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The breathtaking beauty of the state and its climate, which is favourable for growing a wide variety of fruits and flowers, make Jammu & Kashmir an attractive destination for tourism and agro-based industries, specially horticulture and floriculture. The state has a significant mineral resource base especially limestone, a key ingredient for the cement industry.

Hydel power is another key area. The state has an estimated hydro power potential of 20,000 MW and is keen to attract investments in this sector through its Policy for Development of Micro/Mini Hydro Power Projects 2011.Solar energy is another focus area which holds potential.

The state offers many fiscal incentives to the industry under the Central Package 2002 and the State Industrial Policy, 2004. These incentives have attracted investments to the tune of Rs 54 billion.

Some of the focus areas of the state government include food processing and agro-based industries, auto ancillaries, precision engineering, computer hardware and electronics, mineral exploration, eco-tourism, silk, handicrafts and leather goods.

The natural resources, coupled with fiscal incentives, and the focus of the state government on improving industrial infrastructure, augmenting power generation and skill development make Jammu & Kashmir an attractive investment destination.

LOOKING AHEAD

8

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Annexure: Policies

Jammu & Kashmir Industrial Policy-200417

Industrial Policy 2004 has been implemented to accomplish sustainable industrial development and to enhance attractive fiscal incentive.

Key features:

• To achieve sustainable industrial development in all regions for increasing the rate of growth, value of output, employment, income and overall economic development of the State • To strive towards balanced economic and social development in all regions of the State by promoting industrialization particularly of the industrially backwards areas • To encourage and sustain the cottage and tiny industrial sector with low investment, is able to provide employment to a large number of people in the state • To create a supportive environment with transparency and easy access in information technology and financial resources • To revive potentially viable sick industrial units so as to put to optimum use the capital and other resources already employed in such enterprises • To promote the growth of thrust and export-oriented industries and encourage high-tech and knowledgeable based industries including information technology • To take necessary steps in the field of Human Resources Development to make available skilled / technical manpower as per the needs of industry

Policy for Development of Micro/Mini Hydro Power Projects 201118

The main objective of this policy is to attract investors for the development of the state’s water resources in an environment friendly manner to provide a solution to the energy problems in remote and hilly areas where extension of grid system is un-economical or un-viable. This will also help in generating revenue for the state and provide employment avenues, in addition to the all round development of the region.

Key features:

• No entry tax will be levied by the state government on power generation/transmission equipment and building material used for Micro Hydro \ Power (MHPs) • The government land if required, for power projects shall be allotted on lease for 40 years at a premium of Re 1 per sq. m. However, in case of non availability of government land, the land required shall be acquired by Science & Technology/ Jammu and Kashmir Energy Development Agency (JAKEDA)/ Ladakh Renewable Energy Development Agency (LREDA) and leased out to the Independent Power Producers (IPP) • Mortgage deed in favor of the financing institutions required to be signed by the promoters shall be exempted from payment of stamp duty • Exemption from court fee for registration of documents relating to lease of land will be granted to the IPPs • 10 percent subsidy on capital investment subject to the ceiling of Rs 6 million shall be given in addition to the central subsidy for the power projects from 1 MW to 2 MW after successful installation & commissioning of the project • Royalty at 12 percent shall be charged after the period of 10 years from the date of commissioning of the hydel projects up to 2 MW capacity • IPP will be eligible for central financial assistance as per the standing guidelines of Ministry of New and Renewable Energy (MNRE), Government of India • The projects awarded under this policy shall be exempted from the “water user charges” for a period of 10 years from the Commercial Operation Date (COD)

9

17 www.jksidco.org18 jakeda.nic.in/Policy%20for%20Micro-Mini%20Hydro%20Power.doc

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Solar Power Policy for Jammu & Kashmir 201019

The challenges of climate change and global warming continuously threaten the world community. The Government of Jammu & Kashmir has taken note of the growing recognition of impact of climate change at the local, national and global levels. The government recognizes the urgent need to tackle challenges that arise on account of these impacts through integrated policy prescriptions and programmes aimed at mitigation of impacts and adaptation to reduce vulnerability of systems. The government is also cognizant of the cross-cutting nature of impacts with enormous cost implications for tackling them and that these costs could escalate if preventive action is not taken immediately.

Key features/benefits of the policy are:

• Promoting generation of green and clean power in the state using solar energy • To put in place an appropriate investment climate, that could leverage the Clean Development Mechanism (CDM) • Productive use of the wastelands, thereby fostering a socio-economic transformation. • Employment generation and skill enhancement of local youth • Promotion of R&D and facilitation of technology transfer • Establish core technical competence in professionals in the state to initiate and sustain use and effective management of newer energy applications • Creation of environmental consciousness among citizens

Jammu & Kashmir IT Policy 200420

The state government is aware of the enormous potential of IT in the economic development of the state. This policy aims to facilitate the creation of a sound IT production base in the state through conscious efforts and policy initiatives.

Key features:

• Use IT in the process of government functioning to bring about Simple, Moral, Accountable, Responsive and Transparent (SMART) governance to its citizens • Use IT effectively in industries especially where the state has competitive advantages, for making such industries global and help them to generate additional revenues • Encourage the local industries to become web-enabled and attract IT companies from the world and rest of the country • Encourage the use of Information Technology in schools, colleges and educational institutions so as to enable students to improve their skills, knowledge and job prospects • Accelerate the investment and growth in IT hardware, software, Internet, training, IT enabled services, telecom, e-commerce and related sectors in the state • Utilize the power of IT in the overall goal of improving healthcare; empowering women, rural and tribal communities as well as economically weaker sections of society • Use Information Technology for generating additional employment for the new digital economy • Provide adequate infrastructure in the state, so that the IT sector can flourish and provide better quality of life to the citizens • Facilitate localization of software so that benefits of IT could percolate not only in the English language, but also in the local languages • Use IT for heralding world class e-Tourism in the state • Bring the specialized treatment to the remotest area of the state through telemedicine

19 http://india.gov.in/allimpfrms/alldocs/15606.pdf 20 http://india.gov.in/allimpfrms/alldocs/8946.pdf

• Use IT to boost trade and commerce in areas of traditional strength of the state such as handlooms, handicrafts and horticulture

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual

or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information

is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information

without appropriate professional advice after a thorough examination of the particular situation. © 2012 KPMG, an Indian Partnership

and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative (“KPMG

International”), a Swiss entity. All rights reserved.

The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

This report has been made by KPMG in India for CII.

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KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 150 countries and have 138,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

Our Audit practice endeavors to provide robust and risk based audit services that address our firms’ clients’ strategic priorities and business processes.

KPMG’s Tax services are designed to reflect the unique needs and objectives of each client, whether we are dealing with the tax aspects of a cross-border acquisition or developing and helping to implement a global transfer pricing strategy. In practical terms, that means KPMG firms work with their clients to assist them in achieving effective tax compliance and managing tax risks, while helping to control costs.

KPMG Advisory professionals provide advice and assistance to enable companies, intermediaries and public sector bodies to mitigate risk, improve performance, and create value. KPMG firms provide a wide range of Risk Consulting and Management Consulting that can help clients respond to immediate needs as well as put in place the strategies for the longer term.

KPMG in India, a professional services firm, is the Indian member firm of KPMG International and was established in September 1993. Our professionals leverage the global network of firms, providing detailed knowledge of local laws, regulations, markets and competition. We provide services to over 5,000 international and national clients, in India. KPMG has offices across India in Delhi, Chandigarh, Ahemdabad, Mumbai, Pune, Bangalore, Chennai, Kochi, Hyderabad and Kolkata. The firms in India have access to more than 5,000 Indian and expatriate professionals, many of whom are internationally trained. We strive to provide rapid, performance-based, industry-focused and technology-enabled services, which reflect a shared knowledge of global and local industries and our experience of the Indian business environment.

kpmg.com/in

About KPMG IN INDIA

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The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the growth of industry in India, partnering industry and government alike through advisory and consultative processes.

CII is a non-government, not-for-profit, industry led and industry managed organisation, playing a proactive role in India’s development process. Founded over 117 years ago, it is India’s premier business association, with a direct membership of over 7100 organisations from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 90,000 companies from around 250 national and regional sectoral associations.

CII catalyses change by working closely with government on policy issues, enhancing efficiency, competitiveness and expanding business opportunities for industry through a range of specialised services and global linkages. It also provides a platform for sectoral consensus building and networking. Major emphasis is laid on projecting a positive image of business, assisting industry to identify and execute corporate citizenship programmes. Partnerships with over 120 NGOs across the country carry forward our initiatives in integrated and inclusive development, which include health, education, livelihood, diversity management, skill development and water, to name a few.

The CII Theme for 2012-13, ‘Reviving Economic Growth: Reforms and Governance,’ accords top priority to restoring the growth trajectory of the nation, while building Global Competitiveness, Inclusivity and Sustainability. Towards this, CII advocacy will focus on structural reforms, both at the Centre and in the States, and effective governance, while taking efforts and initiatives in Affirmative Action, Skill Development, and International Engagement to the next level.

With 63 offices including 10 Centres of Excellence in India, and 7 overseas offices in Australia, China, France, Singapore, South Africa, UK, and USA, as well as institutional partnerships with 223 counterpart organisations in 90 countries, CII serves as a reference point for Indian industry and the international business community.

Confederation of Indian Industry

The Mantosh Sondhi Centre 23, Institutional Area, Lodi Road, New Delhi – 110 003 (India) T: 91 11 24629994-7 • F: 91 11 24626149 E: [email protected] • W: www.cii.in

Mubarak Villa 11-B/B Gandhi Nagar Extension, Jammu - 180 004 Telefax : 0191-2452006 [email protected]