Investment Climate in Haryana

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1 Investment Climate in Haryana

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3 Investment Climate in Haryana

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5 Contents Economic and Demographic Profile 1 Economic Profile 1 Demographic Profile 2 Physical Infrastructure 2 Power 2 Roads 3 Railways 3 Delhi Mumbai Industrial Corridor 3 Gas Distribution Network 3 Airports 3 Telecom 4 Social Infrastructure 4 Health 4 Education 5 Industrial Profile 6 Land Availability 7 Industrial Land 7 Agricultural Land 8 Manpower Availability 8 State Policies and Incentives 8 Investments in the State 9 Looking Ahead 10 Annexure : Policies 11 All data is at constant ( ) prices unless explicitly stated otherwise GSDP stands for Gross State Domestic Product CSO data accessed on 18 October, 2012

6 EXECUTIVE SUMMARY Haryana, a preferred destination for domestic as well as international investors, is host to a number of multinational companies and corporate houses. It is a vibrant and rapidly growing state. The state enjoys numerous advantages including proximity to the national capital of Delhi, quality infrastructure, progressive policy-making, trained and skilled manpower and responsive administration. Moreover, with one-third of Haryana falling under the National Capital Region, the districts of Panipat, Rohtak, Gurgaon, Faridabad and Sonipat have the added potential for accelerated socio-economic development. Advantage Haryana: 3rd rank in per capita value addition amongst the top industrialised states, in th rank in Infrastructure Index developed by Centre for Monitoring Indian Economy (CMIE) Robust infrastructure leading to economic growth A progressive state - 1st state in the northern region to undertake power reforms 1st state in the country to achieve 100 percent electrification Special Economic Zones (SEZs) Act passed. 20 SEZs with an investment of Rs 870 billion to be set up, out of which 10 SEZs have been already approved by the Central Government Promoting mega projects with collateral economic spinoff opportunities Mega petro-chemical hub being developed near Panipat to catalyse investment of Rs 300 billion Availability of skilled manpower, which is being further strengthened with the setting up of national level education/training institutions, encouraging private sector investment in infrastructure 1 haryana.gov.in/business/generalinformation.asp 2 haryana.gov.in/business/generalinformation.asp

7 1 Photo : Economic & Demographic Profile Economic profile The GSDP of the state stood at Rs 1,795 billion during registering a CAGR of 9.4 percent from Rs 958 billion during The GSDP of the state accounts for 3.4 percent of the national GDP. 3 Figure 1 : Growth of GSDP of Haryana in Rs billion 2,000 1,500 1, , ,163 1,262 1, ,529 1, , in percent The Planning Commission had fixed an ambitious growth target of 11.0 percent for the state for the 11th Five Year Plan ( ). The growth rate for agriculture, industry and services sectors of the state economy were targeted as 5.3, 14.0 and 12.0 percent, respectively. The actual average growth recorded by these sectors during the 11th Plan period was 3.4, 7.0 and 12.6 percent respectively. The overall average annual growth rate of 9.2 percent was recorded during the period of 11th Plan. For the 12th Five Year Plan ( ), the Planning Commission has fixed tentatively the growth target of 9.3 percent for the state. The sector-wise growth targets tentatively fixed by the Planning Commission for the state are agriculture (3.4 percent), industries (9.9 percent), and services (10.3 percent) Figure 3: Sector wise contribution of the GSDP during the period and Source: CSO Figure 2 : Key Economic Indicators Key Component ( ) Value GSDP Rs 1,795 billion Growth in GSDP 7.9 percent Per Capita Income Rs 62,825 National Per Capita Income Rs 37, Source: CSO Agriculture Industries Agriculture Services Industries Services 3 CSO

8 2 Demographic profile As per Census 2011, population of Haryana is 25.4 million 4 with 65.2 percent living in rural areas and 34.8 percent in urban areas. The percentage of urban population has increased from 28.9 percent in 2001 to 34.8 percent in 2011, registering a net increase of 5.9 percent. The total area of Haryana is 44,212 sq km. while the density is 573 per sq km which is higher than the national average of 382 per sq km. entities as given below to bring about efficiency, economy and competition. Haryana Power Generation Company Limited (HPGCL) for the generation of power Haryana Vidyut Prasaran Nigam Limited (HVPNL) for the transmission and distribution of power within the state Subsequently, the activity of distribution and retail supply of power was entrusted to: Figure 4 : Key Demographic Indicators (2011) Key indicators Value Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) for north circles (Ambala, Yamunanagar, Kaithal, Panchkula, Karnal, Kurukshetra, Panipat, Sonipat, Rohtak, Jind and Jhajjar) Population 25.4 million Population size (Males) 13.5 million Population size (Females) 11.8 million Population size (Urban) 8.8 million Population size (Rural) 16.6 million Density of population 573 per sq km Literacy rate 76.6 percent Male literacy rate 85.4 percent Female literacy rate 66.8 percent Sex ratio (females per 1000 males) 877 Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) for south circles (Bhiwani, Faridabad, Gurgaon, Mahendergarh, Rewari, Hissar, Sirsa, Fatehabad and Mewat). Figure 5 : Peak demand supply position in the State MW 7,000 6,000 5,000 4,000 3,000 2,000 1, Peak Deficit % Source : Census 2011 (Provisional) Peak Demand Peak Met Peak Deficit % Physical Infrastructure Power The total installed capacity available to the state at present is 7,573MW. This includes 4,144 MW from state sector, 1364 MW from private sector and 2,066 MW from central sector. Of the total installed capacity in the state, the contributions from various sources are: 5 Thermal power 79.1 percent Hydro power 18.0 percent Renewable energy sources- 1.5 percent Nuclear power 1.4 percent The state has renewable energy based installed power generation capacity of MW. A capacity of 12.2 MW was added in The Government of Haryana has segregated generation, transmission and distribution functions of the Haryana State Electricity Board (HSEB) by entrusting these two different Source: CEA Considering the need for increasing power availability in the state, various short-term and long-term measures such as addition in capacity generation, improvement in operational efficiency, rehabilitation and extension of distribution network, etc. have been taken up. Some of the proposed projects in the power sector include: 660 MW (Super Critical Technology) Coal based thermal power plant in the existing campus of DCRTPP Yamunanagar at an estimated cost of Rs 40 billion. The plant is likely to be commissioned in Third phase of thermal power project at Jhajjar MW Gas based power plant of 1500 MW (750 x 2) at Faridabad at an estimated cost of Rs 60 billion. The plant is expected to be commissioned in Haryana is one of the first few states in the country which has created and notified the State Energy Conservation Fund in February, 2010 as requisite under the Energy Conservation Act A campaign for energy efficiency in the industrial sector is under implementation. 7 4 Census 2011 (Provisional) 5 CEA, August 2012; including allocated shares in joint and central sector utilities 6 Economic Survey of Haryana, ; Central Electricity Authority (CEA) 7 hareda.gov.in/?model=pages&nid=111

9 3 Roads Haryana has a total road length of 26,907 kilometres 8. The remotest parts of the state are connected with metalled roads. The road density in the state is 52.1 sq km per 100 sq. km. 9 Haryana is among the few states with 100 per cent connectivity of rural areas with metalled roads. National Highways NH-1, NH-2, NH-8, NH-10 and NH-22 traverse through the state. Figure 6 : Road network in the State ( ) Type of Road During the year , a total amount of Rs 10.7 billion was sanctioned for road, bridges and highway projects. 10 Railways Haryana has a robust network providing rail connectivity with a 1,595-km long rail network. 11 The main railway routes inter-connecting the state include: Amritsar-Delhi, Rewari- Ahmedabad, Bhiwani-Rohtak-Delhi, Ambala-Ferozepur, Delhi-Ferozepur, Kalka-Jodhpur, Kalka-Howrah, Amritsar- Howrah and Delhi-Shimla. There are two narrow gauge lines that link Kalka with Shimla and Jogindernagar with Pathankot. There is also the Nangal broad gauge line connecting the Nangal Dam to Charuru. Key investments: 12 Length in Km National Highway 1,462 State Highway 2,521 Major District Road 1,471 Other District Road 21,453 Source: Economic Survey of Haryana, The route of the Delhi Metro has been extended to cater to the Gurgaon Government of Haryana has also taken up a project for providing a rail link from Rohtak to Rewari Under the National Capital Region, there is a proposal to provide a rail corridor connecting towns around Delhi, linking the major satellite towns like Faridabad, Gurgaon, Bahadurgarh, Kundli etc. There is also a proposal to provide rapid mass transportation system between Delhi and the satellite towns Under DMIC initiatives, a project connecting Gurgaon-Manesar-Bawal through Mass Rapid Transport System has been listed and the feasibility for it has been approved. The Rapid Metro Rail Gurgaon is expected to be completed by Delhi Mumbai Industrial Corridor With 60 percent area of the state under DMIC, two Investment Regions (IR) and two Industrial Areas (IA) have been envisaged. Keeping in view the location advantages and intrinsic strengths of the locations in various industrial sectors. The IRs and the IAs are 13 : Faridabad-Palwal Industrial Area Rewari-Hissar Industrial Area Kundli-Sonipat Investment Region Manesar-Bawal Investment Region In addition, the following projects are also proposed: The early bird projects are exhibitioncum-convention centre at Manesar, Integrated Multi-Modal Logistics Hub at Rewari, and Mass Rapid Transit System (MRTS) between Gurgaon-Manesar- Bawal Priority project are Kundli-Manesar- Palwal Expressway & the Global Economic Corridor and cargo airport in NCR Key projects in MBIR are fresh water storage & transmission, Integrated Passenger Hub at Panchgaon Chowk, education cum health hub, affordable low cost housing and eco-city project in IMT Manesar. Gas Distribution Network Recognizing that availability of gas, (LNG, LPG, CNG) as it holds a great promise in furthering the process of development, laying of Gas Distribution Network has already been taken up in Faridabad and Gurgaon. The government is in discussion with the Petroleum and Natural Gas Regulatory Board (PNGRB) to cover the entire state with the Gas Distribution Network in the shortest possible timeframe. Accordingly, the remaining parts of the state are proposed to be covered as a part of this initiative. Airports The domestic airport of Haryana is located in Chandigarh the capital city, and the Indira Gandhi International Airport at New Delhi is located 20 minutes away from Gurgaon. There are civil aerodromes operational at Pinjore, Karnal, Hisar, Bhiwani and Narnaul. An outlay of Rs 8.5 million has been proposed for Civil Aviation, in the budget of the state. 14 Cargo Airport The state has planned establishment of an International Cargo Airport along with provision of Aircraft Maintenance Hub in the National Capital Region. The proposal has been taken up with the Ministry of Civil Aviation and the Airport Authority of India for taking the project further. Subject to feasibility, this project would open new areas of development in the state, in particular in the areas located in close vicinity of the proposed project. 8 Economic Survey of Haryana, haryana.gov.in/business/economic_infrastructure.asp 10 Economic Survey of Haryana, Approved Annual Plan (Vol 1), Haryana

10 4 Telecom Haryana boasts of a strong telecom and IT infrastructure. Haryana had an overall teledensity of 89.4 percent and 23.2 million subscribers. 15 Wireless and wireline service providers in the state include : Tata Teleservices Ltd. BSNL Bharti Airtel IDEA Vodafone Aircel Group Reliance Communications Social Infrastructure Health A provision of Rs 150 million in state budget and Rs 500 million under 13th Finance Commission have been earmarked for augmenting health infrastructure. 16 Figure 7 : Key health infrastructure Key Indicator Government Hospitals 69 Value Primary Health Centres (PHCs) 429 Community Health Centres (CHCs) 107 hospitals and state-of-the art diagnostic facilities at the tertiary level. Figure 8 : Key health indicators Indicator Birth Rate* 22.3 Death Rate* 6.6 Infant Mortality Rate** 48 Haryana Source: Sample Registration System (SRS Bulletin), December 2011 Note: * per 1000 population ** per 1000 live births Few of the key initiatives are 17 : The state aims to promote health tourism and allied projects. An investment outlay of more than Rs 1 billion has been granted for the same. The state is working towards establishment of the following facilities:» Common bio-medical waste treatment facilities for proper disposal of biomedical waste generated by hospitals, laboratories and R&D Centres.» Effluent treatment plants for treatment of liquid effluent generated from government hospitals.» Liquid oxygen plants in hospitals with a bed-strength of more than 100. Dispensaries 193 Number of Beds 10,006 Sub Centres 2,484 Source: Economic Survey of Haryana, To provide a fillip to healthcare infrastructure, the Government of Haryana has undertaken numerous initiatives along with private sector participation. A focus has been laid on establishing quality healthcare facilities through specialty and super specialty 15 The Indian Telecom Services Performance Indicators (January March 2012),The Telecom Regulatory Authority of India haryana.gov.in/misc/industry-policy-2011.pdf

11 5 The state government agencies (Haryana Urban Development Authority (HUDA), Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) and the Urban Development Bodies) are to earmark separate clusters at appropriate locations for medical care service providers. 3 District Hospitals of Panipat, Rewari and Narnaul are being up-graded with construction of additional blocks. At Jhajjar and Bahadurgarh, new hospital buildings have also been completed and made functional at the cost of Rs 180 million. Construction of 7 CHCs, 39 PHCs and 145 Sub Health Centres has also been completed Haryana has become the first state in the country to extend the scope of the scheme Rashtriya Swasthya Bima Yojana (RSBY) to other segments of the population by implementing the Health Insurance Plan for building & other construction workers in the state 18. The state has also launched National Rural Health Mission (NHRM) to undertake architectural correction of the health system and promote policies that strengthen public health management and service delivery in the state. Some of the key initiatives by NRHM, to strengthen the medical infrastructure in the state, are 19 : 160 PHCs are being made available on 24X7 basis 502 delivery huts have been established to provide safe deliveries on 24X7 basis 3 Mobile Medical Units have been placed in service and 3 more are in pipeline 100 clinics on wheels have been approved for providing services in underserved areas Education The literacy growth rate in Haryana has witnessed an upward trend and stands at 76.6 percent as per the 2011 census. Consequentially, male literacy stands at 85.4 percent, while female literacy stands at 66.8 percent. In 2001, literacy rate in Haryana stood at 67.9 percent, of which male and female were 78.5 percent and 55.7 percent literate respectively 20. Figure 9 : Key Education Infrastructure Infrastructure Numbers Primary/Pre-Primary Schools 13,094 Middle Schools 3,439 High/Secondary Schools 6,771 Source: Economic Survey of Haryana, Genetics etc. It will also provide quality education in the state and also attract reputed domestic and international institutions for higher learning and expert academicians in various disciplines. The Rajiv Gandhi Education City, Sonipat situated close to Delhi, is expected to attract premier institutions and catapult the state into the sphere of higher education learning where 11 reputed private institutions have been allotted land to set up educational institutions. At present there are 23 universities in the state including state/ central universities, deemed universities and private universities 22. Leading institutes for Technical & Engineering education in Haryana are: NIT Kurukshetra Indian Institute of Management, Rohtak University Institute of Engineering & Technology, Kurukshetra Deenbandhu Chhotu Ram University of Science & Technology YMCA Institute of Engineering Manav Rachna University Technological Institute of Textile & Sciences, Bhiwani Chaudhary Charan Singh Haryana Agriculture University is one of the biggest agriculture universities in Asia and Bhagat Phool Singh Mahila Vishwavidyalaya, Sonipat is the first Women University in north India. In order to encourage healthy competition, to promote quality education and to attract private investment in the field of Higher Education and also to promote the establishment of institutions of higher learning of international standards, the Haryana Private University Act, 2006 has been enacted. With this enactment, the following institutions have been encouraged: O.P. Jindal Global University, Sonipat Apeejay University, Gurgaon Amity University, Gurgaon Haryana has a well-established network of educational institutions. The primary level education facilities are available within in a radius of 1.03 km, middle level education facilities are available within a radius of 1.07 km, high schools are available within a radius of 1.52 km and senior secondary level schools are available in a radius of 2.28 km in the year The distribution of educational institutions all over the state is uniform 21. Higher Education In order to develop higher education infrastructure in the state, the authorities have proposed that the Rajiv Gandhi Education City (RGEC) at Kundli (Sonipat) would act as a hub of higher learning and as a centre for a research in cutting edge technologies such as Nanotechnology, Biotechnology and Census 2011 (Provisional)

12 6 Industrial Profile Forming industrial clusters and developing infrastructure has been a key strategy of the state to attract investments in various sectors. Gurgaon, Faridabad, Sonipat, Panchkula, Ambala and Yamuna Nagar are the key industrial districts of Haryana. Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC) is the state s nodal industrial promotion agency, responsible for providing reliable and efficient facilities for entrepreneurs investing in the state. The state has a large industrial base. It has 1,356 large and medium industries with total industrial output of Rs 1,712 billion. The small scale units in the state have a total industrial output of Rs 207 billion. 23 Haryana is the largest producer of passenger cars, motorcycles and scientific instruments. Textiles is another important sector. The state exports readymade garments worth US$ 1,316.6 million annually and provides employment to around 1 million workers. A cluster of high-fashion readymade garment units is presently operating out of Gurgaon. Panipat handlooms and carpets are world renowned. The state is the largest exporter of Basmati rice in the country. Agri processing, dairy and related sectors are important constituents of the economy. In terms of real estate and construction Gurgaon accounts for more than 70 per cent of the new commercial space coming up in the National Capital Region. Haryana is among the leading states in terms of IT exports with software exports (made by registered units through STPI) of US$ 2.99 billion in Biotechnology is another emerging area in the state. Haryana is setting up biotechnology science clusters at Faridabad at an investment of US$ 0.2 billion during the 11th and 12th plan period. Establishment of research centres and laboratories in collaboration with the private sector is being encouraged with the establishment of a bio-technology park and pharma industrial park. The key sectors in the state include textiles, automotive, IT/ITeS and agro-based industries. In addition to manufacturing, some of the other key industries in the state include IT/ITeS, agri & agro-based, real estate & construction and biotechnology. 23 Department of Economics & Statistical Analysis, Government of Haryana ( ) Figure 10 : Key Industrial Clusters in Haryana Source: KPMG Research

13 7 Land Availability Industrial Land Industrial land is being continuously developed and allotted to potential entrepreneurs. Haryana State Industrial and Infrastructure Development Corporation Ltd.(HSIIDC), a state government enterprise develops and provides industrial plots/ sheds at reasonable and competitive rates. It has been declared as a model agency for development of industrial infrastructure in the state. So far, it has developed 35 industrial estates in which 5,417 fully developed plots and 585 sheds have been provided. The Udyog Vihar Complex at Gurgaon has earned a name for itself in providing high quality infrastructural facilities. 24 Haryana Urban Development Authority (HUDA) is another such agency which has developed and sold industrial plots besides developing commercial and residential sites. Special Economic Zones The state government recognizes the potential of Special Economic Zones (SEZ) in driving industrial/ economic growth and facilitating exports. The state has enacted the Haryana Special Economic Zones Act, 2006 for facilitating development of SEZs in the state and framed rules there under. About 100 proposals with an investment outlay of Rs 2,000 billion in industrial infrastructure have been received for setting up of various Special Economic Zones in the state, out of which about 31 have been notified by the Government of India and another 35 have been accorded formal approval. Some of the operational SEZs in Haryana are: DLF Cyber City, Gurgaon (IT/ ITES) DLF Limited (IT/ ITES) Gurgaon Infospace Limited, Gurgaon (IT/ ITES) Cluster Development Cluster based approach is being increasingly recognized as a sustainable, cost effective and inclusive strategy to ensure manufacturing competitiveness of the local industry and to encourage the development of ancillaries. The state government has adopted this strategy for supporting the local industry. A number of theme parks have been set up at various locations viz. Food Parks at Saha & Rai, Footwear Park at Bahadurgarh, Textile Park at Barhi, Agricultural Implements Park at Karnal, Electronics Hardware Technology Park at Kundli and IT Parks at Panchkula, Rai & IMT Manesar. Figure 11: Major developed industrial estates 25 IMT, Manesar, on NH8 Delhi-Jaipur 1,749 acres acquired Growth Centre, Bawal: On NH8. 1,200 acres Phase-I developed I.E Barwala: Located 15 Kms. from Panchkula the estate is fully developed. IIDC Sirsa: Located on NH-10, Land measuring 74 acres has been acquired. Industrial Model Townships The HSIIDC has developed an Industrial Model Township (IMT) at Manesar. IMTs are also being developed at Rohtak (3,800 acres), Faridabad (1,800 acres) and Roz-ka-Meo (1,500 acres). While the development works for IMTs at Rohtak and Faridabad are underway, plans are being finalized for the Roz-ka-Meo and acquisition of land for the IMT at Kharkhoda has been initiated. Industry-cum-Service Centres To facilitate development of micro, small & medium industry and facilitate economic development in industrially backward areas, HSIIDC plans to set up Industry-cum- Service Centres at various locations in the state. These Industry-cum-Service centres are to be developed in Kaithal, Hisar, Bhiwani, Sampla, Narnaul, Mahendergarh, Jhajjar and Gohana, on areas ranging between 250 acres and 1,000 acres. Flatted Factories Provision for flatted factories to accommodate small and tiny units would be made in the existing as well as new industrial estates. This is expected to check the growth of industry in nonconforming areas and will also facilitate the industry to reduce the lead time in setting up of the project besides huge investment on land and building. HSIIDC has developed flatted factory Complex at Faridabad and the same is to be replicated in other Industrial estates/imts too. Private developers would also be encouraged to set up flatted factories. Export Promotion Industrial Park (EPIP) The Haryana Government has set up EPIP on a 107-acre area along the Haryana-Delhi border for export-oriented units in sectors like food processing, leather garments and accessories, electronics, telecommunications, automotives, auto parts and sports goods. Food Parks Food parks have been set up at Saha in Ambala, Rai in Sonipat, Narwana and Dabwali, to provide facilities for the food processing and food packaging industry. Besides the ones mentioned above, the state is planning to set up some more sector specific parks in the near future. The state has established the National Institute for Food Technology Entrepreneurship and Management at Kundli in Sonipat district, a footwear park and a leather garments park at Karnal and Bahadurgarh, respectively, an apparel park each at the SEZs in Gurgaon and Barhi (Sonipat district) under the Apparel Parks for Exports scheme of the Government of India, and a biotechnology park at Manesar. EPIP Kundli on NH-I : Fully developed and available for allotment Kundli Phase IV: Located on Delhi-Haryana border. 400 acres acquired. I.E, Manakpur: Near Jagadhari, 134 acres of land acquired. Barhi near Ganaur: on NH-I, 55 Kms from Delhi. 270 acres already acquired. 24 Department of Economics & Statistical Analysis, Government of Haryana 25

14 8 Agricultural Land Agriculture plays an important role in the economy of Haryana with net sown area accounting for 8 percent of the total geographical area. Figure 12: The land use pattern ( ) in Haryana Land Use Area ( 000 Hectares) Net area sown 3,550 Area sown more than once 2,801 Total cropped area 6,351 Net Sown to Total Geographical Area 8.0 percent Area Sown More than once to Net Area Sown Source: Economic Survey of Haryana, In order to assist farmers, grazers, planters, quarry owners, small contractors and any other business operations which may directly or indirectly lead to development of land for agricultural purposes or any other the purpose akin to agriculture, Haryana Land Reclamation & Development Corporation Limited has been constituted. Out of 4,05,499 hectares alkali affected land, an area of 3,33,128 hectares have been reclaimed so far and remaining area of 72,371 hectares will be reclaimed in the coming 8-10 years. 26 Manpower Availability Haryana has a rich reservoir of trained and skilled manpower. Figure 13 : ITIs/ITCs (January 2012) Institutes Number of Government ITIs 85 Numbers Seating Capacity 22,696 Number of Private ITCs 96 Seating Capacity 10,376 Total ITIs/ITCs 181 Total Seating Capacity 33,072 Source: Directorate General of Employment & Training (DGET), Ministry of Labour & Employment, Government of India 78.9 percent The following initiatives have been undertaken in the area of skill development: 27 Pilot Project of National Vocational Education Qualification Framework (NVEQF) scheme has been approved by Government of India for 40 schools. About 6,000 students are likely to be benefited under the scheme. This is expected to increase the employability of graduating students and build a trained work force to promote growth. Construction of 5 Polytechnics - Ch. Ranbir Singh Hooda Institute of Irrigation & Power Engineering at Hathni Kund (Yamuna Nagar), Government Polytechnic, Umri (Kurukshetra), Government Polytechnic, Jattal (Panipat), Government Polytechnic, Dhangar (Fatehabad) and Government Polytechnic, Nanakpur (Panchkula), would commence operations in The Central Institute of Plastic Engineering & Technology (CIPET) will operate from its new 10 Acre Campus in Murthal (District Sonipat). Centres of Excellence (COE) have been developed in 19 ITIs to provide multi skilling and modular training to the students. To make the training relevant and accountable to users, 64 ITIs have been adopted by 29 industries for up gradation. 68 societies have been constituted covering 75 ITIs to provide them functional, financial and managerial autonomy. Modules under Skill Development Initiative (SDI) scheme of DGE&T through Modular Employable Skills (MES) has been started in 60 Vocational Training Providers (VTPs) to provide training to school drop-outs in various sectors. 23,316 trainees have undergone training under this scheme till March, The process is running for covering 65 more Institutes under this scheme. 28 State Policies and Incentives In order to attract investment into various sectors and thus contribute to the development of the state s economy, the Government of Haryana has introduced several policies. These policies have provided a roadmap for bolstering the industrial climate of the state and have removed various road blocks which curtailed the industrial expansion of the state. These policy measures also facilitate provision of investment incentives and schemes for investors. Please refer to Annexure, for various policies in place in Haryana. Single Window Clearance Mechanism A Single Window Clearance mechanism was established under the Haryana Industrial Promotion Act, It is a three-tier structure consisting of: High Powered Clearance Committee under the chairmanship of Principal Secretary to Chief Minister State Level Clearance Committee under the chairmanship of Principal Secretary- Industries District Level Clearance Committee under the chairmanship of Deputy Commissioner 26 Economic Survey of Haryana, Economic Survey of Haryana, Economic Survey of Haryana,

15 9 Investments in the State The state received industrial investment proposals amounting to Rs 1,024.8 billion during the period August 1991 to May During the year 2011 the state has attracted investment intentions of Rs 86.6 billion. Figure 14 : Investment Intentions in the state Year Numbers Filed Proposed Investment (Rs billion) Share of state in Northern Region proposed investments (percent) Proposed Employment (Numbers) , , , (May) ,503 Source: SIA Statistics, Department of Industrial Policy and Promotion, Ministry of Commerce & Industry Note: Investment in terms of Industrial Entrepreneur Memoranda (IEMs) filed, Letters of Intent (LOIs) issued and Direct Industrial Licenses (DILs) issued Northern Region includes the states of Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand and UT Chandigarh Domestic Investment A large number of industrial units have undergone expansion and as a result, fresh investments of more than Rs 350 billion have been mobilized. In , Indian Oil Corporation enhanced its capacity at Panipat with additional investment of Rs 42 billion. Auto majors Maruti Udyog, Hero Honda as well as auto ancillaries are undertaking expansion in the state with investments to the tune of Rs 100 billion. At present, investment proposals of about Rs 700 billion are under implementation in the Industrial Sector in the state. 29 Foreign Direct Investment According to the Department of Industrial Policy & Promotion, the cumulative FDI inflows from April 2000 to July 2012 amounted to US$ 1,161 million (including Chandigarh, Punjab and Himachal Pradesh). However, it does not include FDI data reported in RBI New Delhi office. For the period April 2012 to July 2012, FDI inflows amounted to US$ 7 million Department of Industrial Policy and Promotion, Government of India

16 10 LOOKING AHEAD Haryana has been growing at a rapid pace and has been able to attract sizable investment from multinational companies, large business houses, foreign investors, non-resident Indians and small-scale entrepreneurs. The state has effectively utilised the benefits of being located in the National Capital Region (NCR). Haryana is an investor friendly state and offers a rich reservoir of skilled, motivated and relatively low-cost manpower along with good infrastructure facilities. The state has continuously strived to create and maintain a conducive environment for attracting investments. It has introduced numerous investor friendly rules and procedures, ensuring timely and smooth delivery of services. Through Industrial Promotion Act, 2005, the state government has been successful in providing an enabling environment to the investors. The state is taking major initiatives towards improving business climate and encouraging private investments in various sectors. The main areas of focus for the state government are: manufacturing, agro- products, dairy, poultry, research-oriented industry, service industry etc. There is a more pronounced focus on the development of knowledgebased industries, biotechnology, pharmaceuticals, contract research & manufacturing, value addition food processing industry and dairy and poultry. The state s Industry Department has been acting as an important facilitator for setting up industries across the state. Haryana plans to unleash the second generation of green revolution concentrating on high value crops and vegetables with an objective to increase productivity of vegetables and dairy by 6 times in the next 2 years. Some of the other proposals to harness the agriculture potential of the state include setting up private markets, a network of warehouses and cold chains, contract farming etc. Availability and cost of land to develop industrial infrastructure in and around the NCR is becoming one of the main bottlenecks for setting up an industry in the state. To counter this issue, the state government has been taking pro- active measures by developing other regions for industries away from the NCR. In this regard, a network of expressways and highways is being developed. Looking ahead, the state already has 857 projects with foreign technical collaboration. A few of these include Maruti Udyog Limited, Hero Honda, Modi Alcatel, Escorts, Sony India, VXL India, Whirlpool Industries, Wipro Limited, Perfetti India, DCM, Benetton, TDT Copper Limited, Asahi India Glass Ltd. etc. Some Major Units in the public sector are HMT Limited, National Fertilizer Limited, Indian Drugs & Pharmaceutical Limited, Bharat Electronics Limited, IBPL etc. The latest addition to this group is the expansion of the oil refinery of Indian Oil Corporation in Panipat at a cost of Rs 42 billion. The overall investment forecast for the state looks promising.

17 11 Annexure : Policies Industrial and Investment Policy, The new industrial policy, taking into account the current economic scenario and prospective developments, lays particular emphasis on further strengthening the base of the manufacturing sector besides knowledge based & high tech industries, efficient use of energy, conservation of resources and pragmatic environmental policies for sustainable development. The following key objectives are sought to be achieved through the industrial policy: Higher, sustainable and inclusive economic growth by attracting investments in a focused and structured manner in potential areas Promote private sector investment through Public Private Partnerships Employment generation and enhanced employability through skill development Continued thrust on manufacturing sector as a key driver of economic growth Generation of entrepreneurial opportunities across all sectors of the economy Facilitation of spatial dispersal of economic activities particularly in industrially lesser developed regions of the state Sustainable development by adopting environment friendly technologies Tourism Policy, With the view to speed-up development of Tourism in Haryana, the state government announced a Tourism Policy. The new tourism policy envisages creation of an environment conducive to attracting increased private investment in the tourism sector, and a more meaningful role for the government. The following key objectives are sought to be achieved through the tourism policy: To promote tourism as a major engine of economic growth and capitalize potential of sustainable tourism for economic and employment generation To promote Haryana as a tourist destination to take advantage of the global travel trade and to develop untapped potential of Haryana To acknowledge the critical role of private sector in development of tourism with government working as proactive facilitator and catalyst. The objective is to broaden and diversify the concept of tourism from only Highway Tourism to Eco Tourism, Adventure Tourism, Pilgrim Tourism, Farm Tourism, Golf Tourism, Medical Tourism and Heritage Tourism etc. in order to meet new market requirements To enhance the infrastructure particularly in the National Capital Region region in view of the forthcoming Common Wealth Games 2010 To enhance professional excellence in training human resources and providing infrastructure for Human Resource Development Developing sustained and effective marketing strategy and plan To use technology to achieve the above said goals

18 12 Information Technology Policy (IT Policy), This policy seeks a deep impact initiative by the state government in encouraging replacement of traditional delivery system of public services by IT driven system of governance that works better, costs less and is capable of serving the citizens needs with ease. A high degree of public satisfaction through transparent and efficient functioning of public domain activities would be at the focus of IT initiative. Application of sunrise technologies in transition to a knowledge based society, providing equal opportunity to all in reaping the benefits of development, harnessing vast potential of human Endeavour and enriching quality of life shall provide the long term underpinning of socio-economic transformation of the state. This policy further seeks to facilitate private domain initiative in e-transition of Haryana by providing critical infrastructure, systems framework and enabling environment. The following key objectives shall be met through the IT policy: Upgrading the standard and quality of administration, particularly in social and public services sector through a process of modernization and rationalization of the administrative set up Providing public centered, efficient and cost-effective Government Extensive percolation of IT literacy and education in the state Promoting investments in IT industry Encouraging private sector initiative in IT related infrastructure and services Increasing the share of IT in State Gross Domestic Product Generating IT related employment opportunities Enhancing earning capacity of the residents thereby ensuring a better quality of life Labour Policy, The Labour Policy aims to evolve a mutually and increasingly beneficial partnership between employers and workers. The following key objectives are sought to be achieved through the policy: To facilitate the growth of industry in Haryana by fostering harmonious industrial relations To strengthen the conciliation machinery towards achieving the objectives of a harmonious worker- management relationship, keeping in view the changing economic scenario To implement labour laws for ensuring proper working conditions and labour standards To provide and improve quality health care to workers through the ESI run hospitals and ensure their future security through implementing the Employees Provident Fund Scheme To continuously strengthen and facilitate the functioning of the Labour Courts, in cases where conciliation has failed To work in a transparent and time bound manner in dealing with approvals required under various labour laws

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20 About KPMG IN INDIA 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 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, industryfocused 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

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22 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 , 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 (India) T: F: E: info@cii.in W: F, Udyog Vihar, Phase IV, Sector 18 Gurgaon (Haryana) Tel : / kavita.nair@cii.in