Northern India poised for a quantum leap: a compendium on investment opportunities in northern states

Northern India :
Poised for a Quantum Leap
A Compendium on Investment Opportunities in Northern States

Contents
Executive Summary 03
I. The Northern Region: An introduction 04
II. Advantage North: Unique combination of complementary strengths 08
III. States/UT profiles 11
I. Chandigarh 11
ii. Delhi 15
iii. Haryana 19
iv. Himachal Pradesh 24
v. Jammu & Kashmir 29
vi. Punjab 34
vii. Rajasthan 42
viii. Uttar Pradesh 49
ix. Uttarakhand 56

Executive Summary
The northern region of India comprises eight states-Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir,
Punjab, Rajasthan, Uttar Pradesh, Uttarakhand and UT Chandigarh. Though the region is popularly known for
its snow capped mountains and for housing the country’s political capital New Delhi; the diverse geographic
terrain, resource endowment and varied climatic conditions of these states/UT offer a variety of opportunities to
investors.
Together these states/UT contribute nearly 26 percent to the national Gross Domestic Product (GDP). Further,
the region contributes nearly 32 percent to the country’s agriculture sector, 31percent of the total geographical
area and houses nearly 31 percent of the total population. This accompanied with rising income levels and
facilitative government measures has further added to the attractiveness of the region.
To add to this are the state specific strengths. Illustratively, the low temperatures of high altitude regions, such
as Jammu & Kashmir, Himachal Pradesh and Uttarakhand have immense potential in agro & fruit processing
and hydelpower. The rich mineral resources and high solar radiation in Rajasthan offer opportunities in mineral
processing and solar power sectors. Well-developed infrastructure and educated professionals have led to the
development of IT/ITeS sector in Delhi/National Capital Region (NCR) and Chandigarh. The neighboring
Haryana has emerged as a hub for automobiles sector, while the growth of textiles sector in Punjab has been
taking place over the last few decades. Availability of large labor force accompanied with other factors has
made Uttar Pradesh a manufacturing hub. Further, investment opportunities in these states are neither limited
to these sectors nor to their resource endowment. This can be gauged from pro-active government support on
developing other sectors as well, especially IT/ITeS. Almost all states offer opportunities in infrastructure and
tourism.
Several important infrastructure projects have been initiated in the northern region-Delhi Mumbai Industrial
Corridor being one of them. The project is not only expected to attract around USD90-100 billion of investment,
ease freight movement and generate employment, but also emerge as a global manufacturing and trading hub.
In addition to the central government projects, there are several projects and other initiatives undertaken by the
state governments. While, some state governments have recently announced new policies, others are also
exploring the possibility of introducing new policies or amending old policies. Further, some state governments
are also working towards announcing long term measures (reforms), such as instituting single window
clearance mechanism. Still others are proactively holding bilateral discussions with domestic and international
investors. A case in point is the Government of Rajasthan that has successfully attracted over USD25 billion of
investment from Japanese investors by demarcating a separate Japanese investment zone in Neemrana.
Almost all states have demarcated industrial areas to ease investment.
All this clearly underlines the vast potential of the northern region. In the past, though the region fell behind the
western region in attracting foreign direct investment, pro-active government support in terms of incentives and
dialogues with investors, development of infrastructure especially in power and roads and availability of
educated professionals and skilled labor is expected to go a long way in attracting long-term investment inflow.
This will be facilitated by growing population and income.
This report aims at highlighting the advantages and the investment opportunities available in the northern
region to potential investors.
- 3 -

The northern region is among the largest regions in India comprising of eight states —Delhi, Haryana, Himachal
Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand and UT Chandigarh. Together, these
states and UT account for nearly 31percent of the total area of India. Rajasthan is the country’s largest state by
area, accounting for nearly 10 percent of India’s total area and 34percent of northern region’s area. This large area
of the northern region accounts for a sizeable population as well. With more than 368 million people, the region
accounts for nearly 31 percent of India’s population residing in the country.
Table: Geographic and demographic profile of northern region
State/UT Geographical
area (sq km)
Share in northern
region’s
geographical area
(percent)
Share in
India’s
geographic
al area
(percent)
Population
(million)
Share in
northern
region’s
population
(percent)
Share in
India’s
population
(percent)
Chandigarh 114 0.01 - 1.1 0.3 0.1
Delhi 1,483 0.2 0.05 16.8 4.6 1.4
Haryana 44,212 4.4 1.3 25.4 6.9 2.1
Himachal
Pradesh
55,673 5.5 1.7 6.9 1.9 0.6
Jammu &
Kashmir
222,236 22.0 6.8 12.5 3.4 1.0
Punjab 50,362 4.9 1.5 27.7 7.5 2.3
Rajasthan 342,239 33.8 10.4 68.6 18.6 5.7
Uttar Pradesh 240,928 23.8 7.3 199.6 54.1 16.5
Uttarakhand 53,483 5.2 1.6 10.1 2.7 0.8
Northern
region
1,010,730 100.0 30.6 368.7 100.0 30.5
India 3,287,263 - 100.0 1,210.2 - 100.0
Source: Census 2011
Economic snapshot
The northern region is an important part of India as it contributed close to 26 percent to the national Gross
Domestic Product (GDP) and nearly 32 percent to India’s agriculture sector (in FY12).1
Further, there are several
high income states in this region.
GDP performance
The economic growth in the northern region has outperformed the growth in the rest of the country, with the
region’s economy growing at a CompoundedAnnual Growth Rate (CAGR) of 8.4 percent compared to 7.7 percent
for India during FY08-FY12. This growth has been mainly fuelled by the Services sector, though Agriculture and
Industry also recorded higher growth than those of all-India. While Services sector grew at a CAGR of 10.9 percent
in the northern region, it grew at 9.6percent at all-India level; Industry recorded the second highest CAGR of 6.7
percent in the northern region whereas 6.5 percent at all-India level; followed by Agriculture growth at a CAGR of
3.9 percent in the northern region and 3.1 percent at all-India level.
1
Note: FY13 data for state GDP and its composition not available for all states. Thus, FY12 data considered for
northern region as a whole (Source: MOSPI)
The Northern Region: An introduction
- 4 -

Source: MOSPI
The nine states/UT that comprise the northern region recorded variable growth with Delhi and Uttarakhand
leading the pack with a CAGR of more than 11 percent during FY08-FY12. The CAGR recorded by other states
during this period is as follows: Haryana and Rajasthan (9.2 percent each), Chandigarh ( 8.3percent), Himachal
Pradesh (7.9 percent), Uttar Pradesh (7.1 percent), Punjab (6.2 percent) and Jammu & Kashmir (5.8 percent).
Uttar Pradesh is the largest contributor to northern region’s GDP accounting for a share of 31percent, mainly
owing to its large population. It is followed by Delhi, Rajasthan, Haryana and Punjab.
Table: State-wise economic growth(percent)
States/UTs Share in northern region’s GDP (percent) CAGR (percent) Period for CAGR
Jammu & Kashmir 3.7* 5.8 FY08-FY13
Himachal Pradesh 3.8* 7.6 FY08-FY13
Punjab 14.0* 6.0 FY08-FY13
Uttarakhand 5.4* 10.7 FY08-FY13
Haryana 16.3* 8.6 FY08-FY13
Delhi 18.8* 9.9 FY08-FY13
Uttar Pradesh 38.0* 6.7 FY08-FY13
Rajasthan 17.0** 9.2 FY08-FY12
Chandigarh 1.1** 8.3 FY08-FY12
Note: Data at constant FY05 prices (as of August 2013)
FY13 data not available for Rajasthan and Chandigarh (as of August 2013)
*Share in northern region’s GDP (of seven states, except Rajasthan and Chandigarh for which data not available as of August
2013)
**Share in northern region’s GDP in FY12 (as of August 2013)
Source: MOSPI
The composition of respective GSDPs has also undergone a change, with Services sector accounting for the highest
share in all the states/UT of the region. The share of Services sector varies between 42.0 percent (in Himachal
Pradesh) to 85.2 percent (in Delhi).
0
2
FY08 FY09 FY10 FY11 FY12
Northernregion India
Figure: Comparison of GDP growth (percent)
8.2 8.4 8.3
9.5
7.4
9.3
6.7
8.6
9.3
6.2
4
6
8
10
- 5 -

Per capita income
High economic growth results in high per capita income. In case of northern region, of the seven states for which
per capita income for FY13 was available, five recorded a higher income level than all-India average. Delhi and
Haryana lead the pack, followed by Uttarakhand, Himachal Pradesh and Punjab.
In terms of growth, Uttarakhand leads all other states with highest CAGR of 8.6 percent during FY08-FY13,
followed by Delhi at 7.7 percent, Haryana 6.8 percent, Himachal Pradesh 5.1 percent, Uttar Pradesh 4.9 percent,
Jammu & Kashmir 4.5 percent and Punjab at 4.1 percent.
Figure: State-wise per capita income (in INR)
Note: Per capita income for FY13 (as of August 2013)
Rajasthan and Chandigarh not included as data not available for FY13 (as of August 2013)
Rajasthan and Chandigarh had per capita income of INR28,851 and INR89,351 respectively in FY12 and CAGR of 7.1 percent and
0.7 percent respectively during FY08-FY12
Source: MOSPI
Note: Data at constant FY05 prices (as of February 2013)
*Data for FY12
Source: MOSPI
20.6 17.2 21.8
10.9 16.7
0.7
21.4 21.9
0.4
24.6 40.7 29.5
35.7 28.7
14.1
31.1 23.2
15.8
54.9
42.0 48.7 53.4 54.6
85.2
47.5 54.9
83.8
0.0
20.0
40.0
60.0
80.0
100.0
120.0
Jammu &
Kashmir
Himachal
Pradesh
Punjab Uttarakhand Haryana* Delhi* Rajasthan* Uttar Pradesh Chandigarh*
Agriculture Industry Services
120,414
65,500
51,586
30,421
48,409 53,548
18,891
39,168
0
30,000
60,000
90,000
120,000
150,000
Delhi Haryana Himachal Pradesh Jammu &
Kashmir
Punjab Uttarakhand Uttar Pradesh
State India
Figure: State-wise composition of GSDP (percent)
- 6 -

Figure: Year-wise FDI inflow in northern region (in INR million)
Source: Ministry of Commerce and Industry
Within the region, Delhi attracted highest investment inflow of USD36.5 billion or 94.2 percent of northern
region’s investment inflow. Positively, other states are undertaking measures to improve investor climate. These
measures include introduction/extension of fiscal incentives, putting in place a mechanism for single window
clearance, formation of land banks, increased supply of power and water.
Table: Region-wise cumulative FDI inflow during April 2000-April 2013 (USD million)
RBI’s region States/UTs included FDI inflow Share in northern
region’s FDI
(percent)
Share in India’s FDI
(percent)
Delhi Delhi and parts of
Haryana and Uttar
Pradesh
36,554 94.2 18.7
Chandigarh Chandigarh, Punjab,
Haryana and Himachal
Pradesh
1,201 3.1 0.6
Jaipur Rajasthan 685 1.8 0.3
Kanpur Uttar Pradesh,
Uttarakhand
348 0.9 0.2
Northern region - 38,788 100.0 19.8
India - 195,724 - 100.0
Though the northern region has performed well in terms of economic growth and foreign investment inflow, the
opportunities have not been tapped to their full potential. Thus, the following sections, discuss both the sector-
specific and project-specific investment opportunities in this region along with policy measures and other
initiatives undertaken by the respective state governments.
96
476
148
388
186
0
100
200
300
400
500
Growing business opportunities on the back of rising consumer demand, increased government support, improving
infrastructure and a host of other factors translated into investment inflow. During April 2000-April 2013, the
Foreign Direct Investment (FDI)
northern region attracted FDI inflow of USD38.8 billion, which accounted for a share of 19.8 percent in total FDI
inflow in India during the period.
On an annual basis, the FDI trend has been volatile, influenced by a variety of factors — both domestic and global.
Positively, the FDI inflow in the northern region recorded a CAGR of almost 18 percent during FY09-FY13.
- 7 -

Advantage North: Unique combination of complementary strengths
The region’s high economic growth rate, abundant resource endowment, availability of skilled labor, expanding
infrastructure, government support, rising consumer demand backed by increasing income are some among the
many advantages offered by the northern India. Together, these factors make the region a viable investment
destination.
High economic growth rate
As discussed earlier, the northern region recorded higher growth rate than all-India average during FY08-FY12. This
has been enabled by high growth recorded by the Services sector, though Agriculture and Industry also recorded
higher growth than all-India average.
Abundant natural resources
The northern region is endowed with abundant natural resources that offer opportunities for the development of
several sectors. Illustratively, high solar radiation in Raja sthan has enabled the state to tap the potential of solar
power. Capitalizing on this abundant natural resource, Rajasthan has emerged the second leading state (with 442
MW) in installed solar power capacity in India. As of March 2013, Rajasthan and other northern region states
accounted for 33.3 percent of installed solar power capacity in India.
2
Likewise, abundant water resources in Jammu &Kashmir, Uttarakhand, Himachal Pradesh and other states, offer
immense potential for hydro power generation. With an installed hydro power capacity of 15,467.8 MW, the
northern region accounted for 39 percent of India’s total hydro power capacity as of June 2013.
3
Further, the geographical terrain, soil and climatic conditions of hill states, such as Jammu & Kashmir and Himachal
Pradesh is suitable for production of several fruits. Infact, Jammu & Kashmir is the leading producer of almonds
and walnuts in India. The state along with Himachal Pradesh leads all other states in the production of apples in
the country. This not only highlights the potential for horticulture sector but also lays the foundation for Agro
Processing industries engaged in manufacture of pulps, jams, jellies, etc.
High agriculture produce in states, such as Punjab, Haryana and Uttar Pradesh also supports the growth of agro-
processing industries on one hand and power generation on the other, as agri-residual can be used for the same.
Infact, production of cotton has laid the basis for textile mills in Punjab and other states.
Rajasthan, with more than 75 varieties of minerals, offers potential for development of diverse industries, such as
Ceramics, Glass, Cement andSolar Equipment Manufacturing.
4
This abundance of raw materials not only offers
opportunities for development of industries within the region, but also offers scope for export both of raw
materials and finished goods from the state.
2
Ministry of New and Renewable Energy
3
Central Electricity Authority
4
Bureau of Investment Promotion, Government of Rajasthan
- 8 -

5
Central Electricity Authority
6
Note: Latest available from the Ministry of Road Transport and Highways
7
Telecom Regulatory Authority of India
2013.5
Likewise, the road network grew by 2.9 percent from 3,682,439 km in FY10to 3,790,342 km in FY11.6
In case
of teledensity, of the top five states, three states belong to the northern region, Delhi, Himachal Pradesh and
Punjab.7
Further, the Central Government has initiated projects, such as the Delhi Mumbai Industrial Corridor (DMIC) and
the Dedicated Freight Corridors (DFC). The DMIC is a USD90-100 billion project that will cover 1,483 km, of which
52 percent will lie in the northern region. On the other hand, the Eastern DFC will cover 1,839 km, of which nearly
66 percent will lie in the northern region, while 50 percent of the 1,483 km of western DFC will lie in the northern
region.
Besides, several road projects and metro rail links are underway in the northern region. These projects will boost
economic activity through investment inflow and employment generation.
Rising consumer demand backed by higher incomes
With more than 30 percent of India’s population residing in the northern region, and some of the high income
states being part of this area, the potential for market development is high. Six of the eight states have higher
monthly per capita consumption expenditure than the average for all India.
Source: National Statistical Organisation
Availability of educated and skilled workforce
With rising population and improving literacy rates, the region is poised to grow further. Of the nine states/UT, six
have a literacy rate higher than that of all-India average. Further, higher education institutions have been
established in the northern region. The region boasts of seven Indian Institute of Technology (IITs), four Indian
Institute of Management (IIMs) and the Indian School of Business (ISB).
0
500
1,000
1,500
Delhi
J&K
UP
Uttarakhand
Haryana
Punjab
Rajasthan
Himachal
Pradesh
Average MPCE (INR) All India average MPCE (INR)
Figure: State-wise consumption spending (INR)
2,362
1,552 1,237
1,746
1,916
1,879
1,421
2,095
2,000
2,500
Expanding infrastructure
Infrastructure development, be it in power, roads or rail network or communication and technology, enables
lowering of cost and time, thereby, improving investment attractiveness. Given this crucial role played by the
infrastructure sector, the northern region states have been continually working towards improving the same. The
installed power capacity of the region grew by 8.5 percent from 56,058 MW in June 2012 to 60,795 MW in June
- 9 -

Source: Census 2011
Government support
Governments —both at the centre and those of states—have been working towards improving investor climate.
While, the Central Government has been relaxing FDI limits in different sectors, the state governments have
announced new policies or made amendments in old policies to announce fiscal incentives and introduce other
investor friendly measures.
The government support extends beyond policy measures and fiscal incentives. Almost all state governments have
demarcated industrial areas/estates. The Government of Rajasthan has gone a step beyond and developed an
international investment zone at Neemrana. Infact, it is the only state in India to have three international
investment zones. Besides, single window clearance has been at the forefront of all state governments’ agenda.
86.3 86.4
69.7
79.6 83.8
76.6 76.7
68.7 67.1
74.081.7
81.9
56.3
71.6
76.5
67.9 69.7
55.5
60.4
64.8
0
10
20
30
40
50
60
70
80
90
100
Census 2011 Census 2001
Figure: State-wise literacy rates (percent)
- 10 -

UT overview8
Chandigarh is a Union Territory (UT) which has one of the highest per capita income in India. It has an area of 114
sq km and is the capital of Haryana and Punjab. According to Census 2011, the UT is inhabited by 1.1 million
people, of which 86.05 percent are literate.
Economy
Chandigarh’s GDP grew at a CAGR of 8.3 percent during FY08-
FY12. Services contributed the highest share of 83.8 percent in
GSDP in FY12 while Industry and Agriculture contributed 15.8
percent and 0.4 percent, respectively, in FY12.
Priority sectors for investment include IT/ITeS, Manufacturing
and Engineering and Tourism and Hospitality.
Source: MOSPI
Investment inflow
The aggregate FDI investment for Punjab, Haryana, Himachal
Pradesh and Chandigarh was INR55.6 billion (USD1.2 billion)
during April 2000-March 2013.
Table: Infrastructure sector: key parameters Source: Ministry of Commerce and Industry
Infrastructure sector Parameters Units
Power Installed capacity 106 MW (as of June 2013)
Aviation No. of airports 1 as (of August 2013)
Road network Road length 2,284 km (as of March 2011)
Sources: CEA; Airports Authority of India; Ministry of Road Transport and Highways
Sector opportunities9
Investment opportunities are diverse in Chandigarh especially in the Services sector which contributes the most to
its GDP. Apart from the priority investment sectors, consumer spending in the UT is significant in Automobiles and
FMCG Goods which make these sectors also feasible for investment.
8
Chandigarh Administration; MOSPI; Census 2011; CEA; Airports Authority of India; Ministry of Road Transport and Highways;
Ministry of Commerce and Industry
9
Chandigarh Administration; Chandigarh Industrial and Tourism Development Corporation (CITCO); CII; DoIT-Chandigarh;
Chandigarh Government- Industrial policy 2009; Chandigarh Tourism;Ministry of Tourism; Press Articles
125
132
139
148
8.1
5.2 5.2
6.7
0
5
10
110
120
130
140
150
FY09 FY10 FY11 FY12
Graph: GSDP (INR billion)
GSDP (INR billion) Growth (%)
224
416
130
47
0
100
200
300
400
500
FY10 FY11 FY12 FY13
Graph: FDI (USD million)
States/UT profiles
Chandigarh
- 11 -

IT/ITeS
Growth supporting
factors
■ Chandigarh Administration’sIT Vision
2010 to promote the usage and
application of IT
■ Well-developed infrastructure and well
educated and qualified human resource
base
■ Rajiv Gandhi Chandigarh Technology
Park which has both SEZ and non-
SEZ locations
■ Phase-I and II of the project
completed
■ Conducive policy framework for the
growth of IT sector
Scope of investment
■ Minimizing physical interface with the
consumers of government services
through e-Governance:
- Proposed automation of all the
departments of Chandigarh
Administration
- All information relating to services to
be available online through e-
Governance centers
■ Technology habitats to be established to
create employment
■ Multi service smart cards to be
provided to residents to carry out
transactions with Department of
Administration
■ Human Resources upgradation
processto continue through
Chandigarh Training on Soft Skills
(C-TOSS) program
■ Setting-up of venture funds by
Administration for public and
private IT companies
Existing companies*
■ Infosys
■ Silicon Valley Systech Inc
■ Agilent Technologies
■ Wipro
■ IBM
■ Tech Mahindra
Note: *Indicative list
Manufacturing and Engineering
Growth supporting
factors
■ Focus on the targets and objectives
contained in the National Common
Minimum Programme
■ Aim is to promote industrial growth by
creating an investor friendly environment
and integration of private initiatives
■ Chandigarh Industrial Business
Park engages in the
manufacture/production of goods
pertaining to any industry and the ones
engaged in providing/rendering of
services
■ Department of Industries offers the
following incentives:
- Assistance for imports-exports
- Availability of raw material
- Financial assistance under the
Prime Minister’s Employment
Generation Programme
- Manage the Handloom Estate at
Manimajra
- Facilitate expansion of trade
facilities through India
International Trade Promotion
Organisation
Scope of investment
■ Industrial area of 1,475 acres being
developed, of which Phase I and II have
been completed
- 152 acres is earmarked in
MauliJagraon for Phase-III
- 20 units exporting products worth
approximately INR1.51 billion
- 2,100 small scale industrial units with
an annual turnover of INR14.3 billion
■ UT is a regional hub for Service
sectors such as Education, Health,
IT, Food and Vegetable Processing,
Pharmaceuticals and Automobiles
■ Key thrust areas include Electronics,
Light Engineering, Biotechnology,
Automotive Components, Food
processing, Handloom and
handicraft, Furniture, Paper and
paper products, Sanitary Fittings,
Pharmaceuticals and Screw
Manufacturing
Existing companies*
■ Bhartiya Manufacturing Industries
■ Unipure Biotech
■ Bhushan Steel
■ Hindustan Machine Tools
Table: Overview of priority sectors for investment
-12 -

Tourism and Hospitality
Growth supporting
factors
■ UT is a major tourist destination as it
shares a border with Punjab, Haryana
and Himachal Pradesh
■ As of 2012, total forest cover of 32.42 sq
km and green space(including parks,
gardens, green belts, leisure valley and
road avenues)of over 33 percent of the
UT
■ Well-connected by rail, road and airways
■ Society for Tourism &
Entertainment Promotion in
Chandigarh (STEPS) was set up to
promote medical tourism, heritage
tourism, adventure tourism, sports
tourism, cinematic tourism
■ In 2012, 924,589 domestic tourists
and 34,130 foreign tourists visited
Chandigarh
Scope of investment
■ Concept of ‘Night Tourism’ for tourists is
introduced
■ ‘Sports Tourism’ to be promoted in
collaboration with various sports
federations and academies
■ Potential for ‘Medical Tourism’ as
the pollution level in UT is one of the
lowest and has an excellent
environment, along with leading
hospitals and medical services
Existing companies*
■ Marriott
■ CITCO
■ Taj
■ Park Plaza
10
Chandigarh Administration; Chandigarh Information
Project –wise opportunities10
Project 1: Jawaharlal Nehru
Chandigarh Education City Project 2:Modern Terminal Market (MTM)
■ A multi-institutional Education
City at Sarangpur institutional
area planned by Chandigarh
Administration
- 16 sites of six acres each
identified on long lease
- 130 acres made available by
the Administration
- Chandigarh Housing Board
to provide common facilities
■ Courses to be offered
- Management courses in
various streams-Hospital
Administration, Computer
Science and other
Engineering branches,
Pharmaceuticals, Tourism,
Bio-technology, Multimedia,
Hospitality, Industrial Design,
Media and Mass
Communication
■ Project Background
- MTM project plans to be a one-stop solution by integrating farm
production and buyers for sale of produce
- Choices include electronic auctioning and facility for direct sale to
exporter, processor and retail chain network under a single roof for a
respective user charge
- MTM to offer facility for storage, cleaning, grading, sorting, packaging,
palletisation of produce including logistics and extension support and
advisory to farmers
- MTM project to be developed on a hub and spoke model
- The spokes to be located at the collection centers from where the
Perishable Agricultural Produce would be brought to a central hub at
Chandigarh
- Central Hub, covering an area of 42 acres (of which maximum of only
17 percent can be utilized to create non-market assets)to be located at
Agro Zone
■ Role of Private Enterprise (PE)
- MTM to be built, owned and operated by a PE who may be an
individual or a consortium of entrepreneurs from Agri-Business, Cold
Chain, Logistics, Warehousing, Agri-Infrastructure or other related
background
- PE to develop required market infrastructure for MTM (including
both hub and spokes) and to provide market services and essential
services to the users of MTM
- As of March 2013, the selection of PE is under process
- 13 -

Government policies and initiatives11
Chandigarh Administration has undertaken a number of projects to accelerate the overall growth and
development of the UT. Various projects, such as the metro project, are planned. Chandigarh has a lot of growth
potential because of its well developed road network, availability of skilled labor, strong presence of service
industry especially financial services.
Table: Incentives to promote investments
Incentives, single window clearance and institutions Land availability, identification of investment zones and
infrastructure development
Policies
■ Draft Chandigarh Industrial Policy, 2009
- Aims to create sustainable industry and
create a pollution free industry based on
promotional avenues for Micro Small and
Medium Enterprises
- Some of the thrust industries include
Electronics, IT/ITeS, Light Engineering,
Biotechnology, Automotive Components
■ IT Vision, 2010
- Development of IT/ITeS industry and IT-
enabled infrastructure like e-Governance
- Other focus areas include multi-service
smart cards, technology habitats, Wi-Fi
zones and touch screens
Institutions
- Chandigarh Administration
- Chandigarh Economic Advisory Committee
■ Land availability
- Administration identified areas for development
of Industrial Park and Technology Park
- Allotment of plots to be made on free hold basis
■ Identification of investment zones
- 1,475 acres earmarked for Chandigarh Industrial
Business Park
- Rajiv Gandhi Chandigarh Technology Park covers
more than 350 acres of area under Phase I and II
■ Infrastructure development
- Focus on education, healthcare and transport
- Metro project planned
- International flights to start operating from
Chandigarh airport very soon
11
Chandigarh Administration; Chandigarh Industrial and Tourism Development Corporation (CITCO)
- 14 -

State overview12
Delhi is the national capital of India and is one of the leading cities of India with a well-developed infrastructure. It
has an area of 1,483sq km. According to Census 2011, the state is inhabited by 16.8 million people, of which 86.3
percent are literate.
Economy
Delhi’s GDP grew at a CAGR of 9.9 percent during FY08-FY13.
Services contributed the highest share of 85.2 percent in GSDP
in FY12 growing at a CAGR of 12.2 percent.Industry and
Agriculture grew at a CAGR of 8.1 percent and 9.2 percent and
contributed 14.1 percent and 0.7 percent to the state’s GSDP
in FY12.
The state has industrial estates and 5 flatted complexes.
Source: MOSPI
Investment inflow
The aggregate FDI investment for Delhi and parts of Haryana
and Uttar Pradesh was INR1,699.9 billion (USD36.6 billion)
during April 2000-March 2013. The state presents promising
opportunities for investment in near future.
Table: Infrastructure sector: key parameters Source: Ministry of Commerce and Industry
Telecom Wireless subscribers 40.2 million (as of April 2013)
Wireline subscribers 2.9 million (as of April 2013)
Power Installed capacity 7,413MW (as of June 2013)
Aviation No. of airports 1 (as of August 2013)
Road network Road length 29,648km (as of March 2011)
Sources: CEA; Ministry of Road Transport and Highways
12
MOSPI; DSIIDC; CEA; Airports Authority of India; Ministry of Road Transport and Highways; Government of Delhi; Press
articles; Ministry of Commerce and Industry
1,558
1,698
1,856
2,027
2,21012.9
9.0
9.3 9.2
9.0
0
500
1,000
1,500
2,000
2,500
0
2
4
6
8
10
12
14
Graph: GSDP (INR billion)
1.9
9.7
2.7
8.0
0.0
5.0
10.0
15.0
FY09 FY10 FY11 FY12
Graph: FDI (USD billion)
Delhi
3.2
FY13
Priority sectors for investment include Knowledge based
industries, Pharmaceutical and Healthcare, Real Estate and
Construction, Banking and Insurance. Other focus sectors
include Tourism, Retail, Education, Infrastructure and
Logistics, IT & ITES in education, Skills Development,
Healthcare, Printing and Publishing.
- 15 -

Delhi is one of the emerging cities of India and offers many investment opportunities.It is among the pioneers
introducing privatization.
Knowledge based industries (KBI)
Growth supporting
factors
■ KBI refers to IT/ITeS, Education, Media,
Biotechnology, R&D and Financial
Services sectors
■ State supported by well-developed
infrastructure, large skill base and
increased penetration of telecom
network
■ New Industrial Policy (2010-2021)
proposes to develop an Electronic/Light
Engineering Park/SEZ to promote
hardware and IT sector
■ Other cluster developments:
- Electronics and Light
Engineering Park/SEZ
- Fashion Technology and Design
Park
- Education and R&D hub
Scope of investment
■ Delhi Skill Development Mission and
Delhi Knowledge Development
Foundation proposed to facilitate existing
units to graduate to high-technology and
knowledge-based industries offer
opportunities for investors
■ Setting up ‘Centre of Excellence’ to
promote innovation and
entrepreneurship in high
technology and knowledge based
sectors
■ Investment required in the areas of
data processing and filtering
Pharmaceutical and Healthcare
Growth supporting
factors
■ Pharma companies with adequate access
to clinical subjects, data on efficacy,
safety of prospective drug and
compositions are supported by the
increase in healthcare accessibility and
improving infrastructure to aid clinical
research and formulation development
■ Supportive government policies,
quick project approvals and fiscal
incentives in the form of
exemptions from excise duty and
income tax and grant of capital
investment subsidy to new
establishments
Scope of investment
■ Diverse investment opportunities
- R&D oriented facilities
- Drug manufacturing facilities
- Packaging/labeling
- Transportation of drugs
- Oncology, neuro, respiratory,
dermatology centers
Existing companies* ■ FortisHealthcare ■ Panacea Biotech
13
Government of Delhi; Press articles; DMRC; DSIIDC; First Pharmaceutical Census of India FY11; Press articles
- 16 -

Project– wise opportunities14
14
Government of Delhi, DSIIDC website, Press articles
Project 1: Knowledge based
industries park, Baprola
Project 2 : Multi-level manufacturing hub at
Mundka-Ranikhera
Project 3: Modern
Industrial Area at
Kanjhawala
■ The Delhi Government expects to generate investment of INR700 billion for these projects which will be
completed by 2016 and create an employment opportunity for 300,000 people
■
■
■
■
■
■
■
Estimated cost:
INR12 billion
DSIIDC is developing KBI
Park at Baprola in an
area of approximately
72.37 acres
Project has been proposed
to be completed in two
phases
Project will cater to
specific needs of IT/ITeS
industry, Media, R&D,
Gems and jewellery and
Business services
Provide housing units for
KBI workers and
economically weaker
section
Project site is expected to
be connected to mono rail
As of April 2012, the KBI
Park at Baprola received all
the required sanctions
from various civic agencies
■
■
■
■
Estimated cost: INR30.98 billion
Under the Industrial Policy for Delhi 2010-21,
Delhi State Industrial And Infrastructure
Development Corporation (DSIIDC) plans to build
a Multi-Level Manufacturing Hub at Mundka-
Ranikhera to provide built, organized and ready-
to-use work spaces and employment for skilled
work force in Light and Services based industries
in Delhi
DSIIDC acquired a land measuring 147 acres at
Rani Khera on Rohtak road in Delhi
- The area will have 610,000 sq meter under the
built-up structure; 150,000 sq meter under the
basement and 190,000 sq meter under the multi-
storey parking
- The proposed site is located 1.5 Km from NH-10
(Delhi Rohtak road) which is adjacent to the main
railway line to Rohtak
- Connected to Mundka metro station and 5-6 Km
from the outer ring road
The land use of the project is for Manufacturing
(Light and Service industry) and will cater to
electronics component manufacturing, systems
testing, IT hardware manufacturing, gems and
jewellery manufacturing, semi-conductor
manufacturing and bio-technology
■ About 1000 acres of
land has been allotted
to develop Modern
Industrial Area. This
isndustrial area is being
developed in land
parcel carved out of
villages Kanjhawala,
Sultanpur Dabas, Karala
and Pooth Kund in
district North West.
■ This industrial area will
accommodate new
green, hi-tech and
knowledge based
industries as envisaged
in MPD – 2021 and the
Industrial Policy for
Delhi 2010-2021
- 17 -

In order to boost industrial growth, the Government has undertaken several initiatives including announcing a few
policies. The major thrust is to provide education, employment and a greener or a more efficient way of
industrialization. The major policies undertaken by the Government are as under:
Table: Policies to promote investments
Policies Provisions
Delhi Industrial Policy ■ Emphasizes on Knowledge based industry
■ Handicrafts, handlooms, Khadi
■ Skill development
■ Industry academia linkage, innovation and entrepreneurship
■ Development of clusters
■ Improved transportation network
Master Plan Delhi, 2021
.
■ Non-polluting industries (emphasis on clean, green and hi-tech
industries for green-field industrial area development)
■ Key industriesincludeElectronics and IT hardware, Biotech,
Telecommunication and enabling services, TV and Video production,
Gems and Jewellery and Apparels
ICT Policy, 2000 ■ Aims at promoting six ‘Es,’ in an integrated form for developing
information and communication technology infrastructure and usage;
The six Es are:
- Electronic-governance
- Equality
- Education
- Employment
- Entrepreneurship
- Economy
■ Government plans to establish modern IT parks in collaboration with
private sector
Transport Policy, 2002 ■ To provide safe, eco-friendly, cost-effective and efficient modes of
transportation through a well integrated multi-modal transport system
SEZ Policy, 2009 ■ To provide enabling infrastructure and a hassle free environment to
promote exports from the state
■ Special emphasis on development of product-specific SEZs
■ Financial assistance under ‘Assistance to States for Infrastructure and
Allied Development for Exports’ (ASIDE)’scheme to SEZs developed on
PPP basis with approval from State Level Export Promotion Committee
15Government of Delhi; DSIIDC
- 18 -

State overview16
Haryana has a rich industrial base supported by robust infrastructure. This large industrial base has resulted in
employment of 319 per 1,000 population as compared to an all-India average of just 242 per 1,000 population.
With an area of approximately 44,000 sq km, it is the 20th
largest state in India and comprises 21 districts.
Chandigarh is the capital of the state. Other prominent cities include Faridabad (the largest city of Haryana),
Panipat, Ambala, Hissar and Kurukshetra. According to Census 2011, the state is inhabited by 25.4 million people,
of which 75.6 percent are literate.
Economy
State economy grew at a CAGR of 8.6 percent during FY08-
FY13. Services sector has been the key sector accounting for
54.6 percent of the state’s GDP in FY12.Industry and
Agriculture accounted for 28.7 percent and 16.7 percent,
respectively, in GSDP in FY12.
Further, the state’s economy grew at a CAGR of 9.3 percent
during FY06-FY12, higher than the CAGR of 8.5 percent
witnessed by the Indian economy. Haryana’s contribution in
the National Gross Domestic Product at constant (2004-05)
prices has been recorded as 3.4 percent as per the Quick
Estimates (QE) of 2011-12.
Haryana’s economy has experienced a structural
transformation over the last five decades. There was a gradual
shift in the state’s economy, which was predominantly rural
and agricultural based at the time of formation in 1966, from
agriculture to Industries and Services sector as the former led
to overall fluctuating economic growth on account of
fluctuations in agricultural production. This became the base
of the shifting of focus towards diversification and
modernization of the state economy.
Focused sectors for investment include Automotive, IT/ITeS,
Sanitary ware, Agro-based industry, Textiles, Bicycles,
Scientific Instruments, Tourism, Biotechnology,
Petrochemicals, Real Estate and Construction.
16
Census 2011 (http://www.census2011.co.in/census/state/haryana.html); Government of Haryana; MOSPI
1,365 1,525 1,652 1,782 1,909
8.2
11.7
8.4 7.8
7.1
0
2
4
6
8
10
12
14
0
500
1,000
1,500
2,000
2,500
Graph:GSDP
(INRbillion)and
growth (percent)
GSDP Growth rate
Source: MOSPI
Haryana
- 19 -

Investment inflow
Table: Infrastructure sector: key parameters
Power Installed capacity 8,113.7 MW (as of June 2013)
Aviation No. of airports 1 (as of April 2013)
Road network Road length 41,729 km
Sources: CEA; TRAI; Ministry of Road Transport and Highways; Airports Authority of India; Ministry of Commerce and Industry
The state offers plenty of Investment opportunities across diverse areas. One-third of state’s area falls under the
National Capital Region facilitating further investments. The New Industrial Policy 2011 provides the right impetus
to strengthen the base of the manufacturing sector besides knowledge-based and high-tech industries. The state is
also well known for its handloom exports, Panipat being the largest exporter in India.
Automotive sector
Growth supporting
factors
■ Haryana State Industrial & Infrastructure
Development Corporation (HSIIDC) has
allotted 54 acres for automotive testing
and R&D facilities
■ The development of railway siding and
logistics centre facilities around
manufacturing locations (especially
Manesar) to help in transportation of raw
materials and manufactured goods have
been announced under the Industrial and
Investment Policy 2011
■ Speedier government clearance of
investment proposals or incentives
■ International Centre for Automotive
Technology (ICAT) set-up at
Manesar as part of National
Automotive Testing and Research
and Development Infrastructure
Project
Scope of investment
■ Gurgaon-Manesar-Bawal region emerged as an auto hub
■ Investment opportunities exist in various related areas, such as manufacturing,
supplies of equipment, parts and paints
Existing companies* ■ Maruti Suzuki ■ Honda Motorcycle & Scooter
17
Government of Haryana, Rail Bandhu, June 2013; ICAT; Press articles; CII
224
416
130
47
0
100
200
300
400
500
FY10 FY11 FY12 FY13
Graph:FDI(USD million)
■ Yamaha Motor
■ Suzuki Motorcycle
■ Hero MotoCorp
- 20 -

IT/ITeS
Growth supporting
factors
■ Various government agencies including
Secretariat for Information Technology,
Haryana State Electronics Development
Corporation and HSIIDC work for
developing IT sector
■ HSIIDC developed IT Parks at IMT
Manesar, Industrial Estates at Rai and
Panchkula for development of IT/ITeS
■ First state to implement its State
Wide Area Network (SWAN) for
voice, data and video transmission
■ Emphasis on education
■ Policy initiatives and incentives
including the IT policy
Scope of investment
■ Gurgaon has emerged as a preferred destination for IT Industry in North India
■ Opportunities exist in data management, transmission, software, cloud services,
etc.
■ In FY12, Haryana recorded IT exports of INR250 billion, growing between 8 and 10
percent over previous year
Existing Companies*
■ IBM
■ Tata Consultancy Services
■ Hughes
Other sectors
Agro based
The agro based industry acts as the biggest employment generator in rural parts of Haryana. The State
Government promotes organic farming by providing financial assistance to farmers. In addition, there is a huge
potential for dairy farming in rural areas, the state being one of the leading Indian states in milk availability.
Real Estate
In FY12, the Real Estate sector accounted for 9 percent of GSDP in Haryana. The state has witnessed rapid growth
in residential, commercial and hospitality segments. Some of the key players in Real Estate in Haryana include DLF,
Unitech and Ansal Housing & Construction. The Government supports the Real Estate sector through various
policies including Land Acquisition Policy 2010.
Project 1: Mass Rapid Transport System (MRTS)
between Gurgaon – Manesar - Bawal
Project 2: Multi-Modal Logistics Hub in Rewari
Project details
■ 57 stations over the length of approximately 130 Km
■ Estimated project cost of INR631.77 billion
Project background
■ As of February 2013, the Government of Haryana
approved creation of Special Purpose Vehicle (SPV)
for project and asked for initiation of land
acquisition
Project details
■ The proposed area includes 900 acres in
Manesar-Dharuhera-Bawal industrial belt with
an expected investment of INR19 billion
■ To be developed through a SPV of DMICDC and
HSIIDC on the PPPbasis
■ As per DMIC plans, logistics hub will have a
container freight station, custom-bonded and
18
Press articles
- 21 -

■ Delhi Mumbai Industrial Corridor Development
Corporation (DMICDC) floated a tender in February
2013 for selecting the consultant who in turn will
prepare the detailed project report
■ DMICDC carried out discussions with Japan
International Cooperation Agency for loan
domestic warehouses, a railway sliding, a truck
parking area, an auto zone and a container-
handling facility
Project background
■ DMICDC and the Government of Haryana
agreed in principle to form a joint venture for
implementing the project
■ Techno-economic feasibility study approved by
State Government and land acquisition process
underway
■ The hub would be located in close proximity to
Manesar, Dharuhera and Bawal to cater to
their cargo requirements
■ In addition to Haryana, hub will be used by the
national capital region (NCR) area, Punjab and
Rajasthan for freight
Project 3: Convention Centre at Pachgaon Chowk
■ Project area under consideration is approximately
400 acres, of which 150 acres to be developed in
initial phase
■ Estimated project cost of INR25 billion
Proposed development:
■ 194,758 sq meter to be designed to provide space to
around 1,850 exhibition stalls
■ 22,500 sq meter reserved for convention centre
■ 113,155 sq meter reserved for proposed hotel
building
■ 12,000 sq meter to be earmarked for retail and
commercial activities
Projects under DMIC
Manesar - Bawal Investment Region (MBIR)
■ Under the DMIC project, investment regions at
Manesar-Bawal and Kundli-Sonipat and Industrial
regions at Faridabad-Palwal andRewari-Hissar have
been identified
■ Concept Master Plan of MBIR finalized and
development plan has been approved by the State
Government
■ An area of 402 sq Km would be taken up for
development initially
Integrated Multimodal Logistics Hub (IMLH), District
Rewari
■ Feasibility study for IMLH project completed
■ Project to be implemented jointly through an SPV
with 50:50 shareholding between HSIIDC and
DMICDC at Bawal in Rewari district, over an area of
1,000 acres
■ Various modules of project include EXIM container
yard and Container Freight Station (CFS), domestic
container yard and warehousing, auto zone and
commercial area
Estimated project cost of INR30 billion
Global City Project in Gurgaon
■ Global City is proposed to be developed as
Second Node in Haryana (after MBIR) in
Gurgaon over an area of 1,100 acres
■ DMICDC would provide knowledge support for
designing and creating infrastructure
■ City to be designed by integrating smart
community concepts ranging from water,
power to integration of IT services in managing
various public utilities
■ Project components would include exhibition
and convention centre, high value innovation
and knowledge industries, central business
district and township
Project 1: Mass Rapid Transport System (MRTS)
between Gurgaon – Manesar - Bawal
Project 2: Multi-Modal Logistics Hub in Rewari
- 22 -

Township (IMT) under PPP model at Gohana, Sonipat (3,400 acre)
■ Development of infrastructure in IMT at Kharkhoda (3,300 acre) started
under PPP model
Commercial, residential and
institutional projects
■ HSIIDC has several sites in various industrial estates for development
of hotels, convenience shopping complexes, schools, hospitals, etc.
■ HSIIDC isdeveloping Vanijya Nikunj, a commercial complex in
Gurgaon,Udyog Vihar for which an area of about 17 acres has been
earmarked
■ Process for project development is under progress
Operations and Maintenance
(O&M) services within industrial
estates
■ Some of the investment opportunities are
- O&M of software technology parks
- Water supply, distribution, treatment, recycling and management
solutions
- Distribution of electrical power
- Security services
- Horticulture and plantation services
- Provision and operation of transport system within industrial areas
- Provision and management of parking facilities
Industrial units within the
industrial estates
■ Industrial plots allotted to entrepreneurs for setting up of industrial
projects in Industrial Estates and Industrial Model Townships developed
by HSIIDC
■ Upto 10 percent of plots/sheds reserved in each industrial estate for
allotment to NRIs/PIOs and for units with at least 33 percent FDI in total
investment
The state has also developed various industrial model townships (IMTs) to promote large industries with all the
facilities. IMTs have helped state to attract private investors. The following table summarizes the development status
of various IMTs in the state.
Table: Status of the Industrial Model Townships (IMT) in Haryana
Name of the Industrial Model Township Status
■ IMT Faridabad Under development
■ IMT Mewat at Sohana Planned and development work yet to
commence
■ IMT Kharkhoda
■ Industrial Estate Dharuhera
Land under acquisition
■ IMT Manesar
■ IMT Rohtak
■ IMT Bawal
■ Industrial Estate, Barhi (Phase I)
■ Industrial Estate Karnal
■ Industrial Estate Rai (Phase I & II)
■ Industrial Estate Barwala
■ Growth Centre Saha
■ Industrial Estate Yamunanagar
Developed and under expansion Planned
and under development
■ IMT Bidhal-Lath, located at Tehsil Gohana in Sonipat District, is
nearly 70 Km from Delhi and is spread over 3,400 acres
Land under acquisition and project to be
developed under PPP model
Table: Other Investment opportunities in Haryana
Category Description
Industrial Infrastructure ■ Industrial and Investment Policy 2011 of Haryana encourages PPP
based development of infrastructure projects majorly in industrial
infrastructure, power, roads, bridges, health, tourism and education
sectors
■ HSIIDC has initiated action for development of Industrial Model
- 23 -

State overview19
Himachal Pradesh has a strong hydro-power base supported by its abundant water resources and topography. It is
one of the most dynamic hill states of India and has an area of 55,673 sq km spread over 12 districts. Shimla is the
capital of the state. Other prominent cities include Dharamshala, Manali, Palampur, Dalhousie, Una, Solan and
Mandi. According to Census 2011, the state is inhabited by 6.9million people, of which 83.8 percent are literate.
Economy
The state’s economy grew at a CAGR of 7.6 percent during
FY08-FY13. This growth has been supported by the Services
sector that grew at a CAGR of 10.4 percent during the same
period and accounted for 42.0 percent of the state’s GDP in
FY13. Industry also grew at a CAGR of 7.8 percent and
contributed a share of 40.7 percent in FY13 whereas
agriculture grew at a CAGR of 1.7 percent and accounted for a
share of 17.2 percent in FY13.
Priority sectors for investment include Pharmaceuticals,
Tourism and Cement. Other key sectors are Agriculture, Fruit
Processing and Horticulture, Information Technology and
Biotechnology.
Source: MOSPI
Investment inflow
Source: DIPP
Power Installed capacity 3,770.1 MW (as of July 2013)
Road network Road length 47,963 km (as of March 2011)
19
Government of Himachal Pradesh; Himachal Pradesh Population Census data 2011, MOSPI, CEA, TRAI, Ministry of Road
Transport and Highways; Airports Authority of India; Ministry of Commerce and Industry
417 435 468
489 516
3.8
4.4
7.6
4.5
5.4
0
5
10
0
200
400
600
Graph: GSDP (INR billion) and
growth (percent)
224
416
130
47
0
100
200
300
400
FY10 FY11 FY12 FY13
FDI infow (USD million)
Himachal Pradesh
- 24 -

The state offers diverse investment opportunities across many of its focus sectors. Various companies have already
invested in the state. Diverse climatic conditions, pro-active government support for investment and presence and
development of various industrial parks provide many investment and development opportunities in the state.
Table: Overview of priority sectors
Pharmaceuticals sector
Growth supporting
factors
■ 100 percent FDI permitted under
automatic route
■ Patents (Second Amendment) Bill to
provide a patent cover for 20 years
■ Automatic approval to Foreign
Technology Agreements for bulk drugs
■ No licensing for manufacturing of
drugs and pharmaceuticals with a
few exceptions
■ Extended weighted deductions
facility of 150 percent to
expenditure on patent filing,
obtaining regulatory approvals,
clinical trials and in-house R&D in
biotechnology
Scope of investment
■ Figures among the leading growth areas
for the pharmaceutical (pharma) sector in
the northern region
■ Existing investment in drug
manufacturing, R&D, packaging/labeling
and transportation
■ Home to 364 pharma units and is ranked
third in northern region
■ Developed an Export Promotion
Industrial Park at Baddi with an
investment of INR200 million
■ A Biotechnology Park (BTP) in
Aduwal, Solan approved for
development under Public Private
Partnership (PPP) mode
■ Requires an estimated investment
of INR2 billion and generates 500
new jobs
Existing companies*
■ Ranbaxy Laboratories
■ Cipla
■ Morepen
■ Torrent Pharmaceuticals
■ Panacea Biotec
Tourism
Growth supporting
factors
■ Himachal Pradesh’s snowcapped
mountains, religious shrines and ancient
monuments attract a variety of tourists
every year
■ Tourism Policy 2005 aims to increase
tourism’s share in GSDP to 15 percent by
2020
■ Witnessed 16.1 million tourists in 2012
■ NABARD promotes work of rural
artisans to attract tourists for
development of ‘Tourism Clusters
■ State Government to initiate
measures to attract more foreign
tourists by offering multi-lingual
guides, websites,etc.
Scope of investment
■ Development of hotels, spas, resorts,
tourist centres, recreational centres and
ski slopes among others without
disturbing the existing ecology
■ The State Government to upgrade civic
■ INR36.8 million sanctioned by the
Government of India to develop eco-
tourism in the state; Of this amount,
INR29.4 billion has been released
for the following identified circuits
20
Government of Himachal Pradesh; Press articles; Department of Pharmaceuticals, Government of India; First
Pharmaceutical Survey of India, FY11; WHO; NABARD; Himachal Pradesh Economic Survey 2013; Annual Administration
Report FY12, Department of Industries, Government of Himachal Pradesh
- 25 -

infrastructure in major tourist
destinations like Shimla, Manali,
Dalhousie, McLeodganj, Kasauli and
Chailon on priority through funds raised
from the Government of India and
through private investors
■ Proposed development of activity- based
tourism and opening up new sub-
destinations to increase the duration of
the stay of visitors/tourists
Shimla (Mandli-DodraKwar)
Kullu (Kullu-Manali-Kothi)
Kinnaur (Shongtong-Pooh)
Bilaspur (ShriNainaDevi Ji)
Existing companies*
■ Radisson
■ Sitara International
■ Oberoi Hotels & Resorts
Cement
Growth supporting
factors
■ Immense potential for growth of cement
industry on account of an estimated
8,630 million tones of limestone deposit
(as of FY12)
■ Growth of cement industry also
supported by growing demand on
account of development of
towns/cities and related
infrastructure
Scope of investment
■ Investment opportunities exist in
- Mining
- Crushing/grinding
- Manufacturing
- Packing
- Equipment providers
- Transportation companies
■ Many companies, such as Lafarge,
Dalmia, JP Associates, Harish
Cements and India Cements,
planning to set up new plants in the
state having an estimated total
production capacity of 12.02 million
tons per annum (MTPA)
Existing companies*
■ Ambuja Cement
■ JP Associates
■ Associated Cement Companies
Other sectors for investment
Agriculture and Horticulture
Information Technology
The State Government provides many fiscal incentives to IT companies. Some of these include quality power to IT
companies at competitive rate and special packages for investment proposals above USD2.5 million or for
proposals from Fortune 500 companies. Also, companies operating in Business Process Outsourcing (BPO) sector
are not taxable in the state.
Tourism
There is adequate internet bandwidth provided by the State Government throughout the state and it has also
proposed an IT park at Waknaghat, Solan
- 26 -
The state’s diverse agro-climatic and pollution-free conditions enable growth of a variety of
vegetables, fruits and cereals. The state’s conducive environment has resulted in the production
of various high quality off-season and exotic vegetables as well as apples and stone fruit.
The state provides many opportunities in the contract farming of maize, ginger, garlic and tea;
organic farming of vegetables and pulses and support services, such as bio-fertilizers, organic
manures, bio-pesticides, seeds for promoting organic farming.
Private sector participation is sought to increase seed production and set up agri-clinics and agri-
business centers. Companies also have the opportunity to set up micro-propagation units, post-
harvest facilities, such as cold storage units and fruit processing units that include alcoholic
beverages and marketing services.

Biotechnology
The emerging potential of herbal-based industry including industrial feeding units, industrial production units and
industrial processing units provides an opportunity for investment in the biotech sector of the state. The
Government is also developing biotech industrial clusters, biotechnology parks with incubation facilities.
Companies have an opportunity to invest in commercial micro-propagation, processing units for aromatic oils and
fruits, production units for pharmaceuticals and bio-drugs and R&D centers for fruit-flori/herbiculture
Project 1: State Data Centre (SDC) Project 2: Tourism circuits in India
■ Department of Information Technology (DIT),
Himachal Pradesh is building the SDC for the all
government departments
■ Under National e-Governance Plan, SDC is identified
as one of the core supporting components to
consolidate services, applications and infrastructure
to provide efficient electronic delivery of business
services
■ Common delivery platform to provide various
services
■ Selected agency to operate and maintain the project
for five years under the PPP mode
■ Status of project as of July 2013:
- Infrastructure put in place by Himachal Pradesh
Housing and Urban Development Authority for
SDC at Mehli
- Request for Proposal floated for selection of SDC
operator; pre-bid meetings held; corrigendum is
being prepared
- Expected to go live within six months post signing
agreement with successful bidder
■ Three tourist circuits have been identified in the
Himachal Pradesh:
- Circuit 1:Chandigarh-Swarghat-Bilaspur-
Mandi-Kullu-Manali-Manikaran-Naggar
- Phase II, Circuit 1: Kalka-Berog-Solan-
Shimla-Chail-Kufri-Naldara with private
sector opportunity of INR250 million
- Phase II, Circuit 2:Kangra-Dharamshala-
Palampur-Dalhousie-Chamba with private
sector opportunity of INR500 million
Phase I
■ Investment opportunity of INR1.5 billion to
build multi-level car parking, five-star hotels,
public toilets and rest rooms, beautification
and landscaping, water sports centre,
convention centre, motels and camping sites in
Circuit 1 alone on PPP basis
Project 3: Tourism, Housing and Infrastructure
■ Himachal Pradesh Infrastructure Development
Board (HPIDB) is the nodal agency for executing a
variety of projects, such as Tourism, Housing, and
Infrastructure on commercial/PPP mode
■ 29 tentative projects have been identified
including the following:
- A tunnel-cum-over bridge project between
Kalka and Shimla worth INR10 billion
- Three expressway corridors — Una-Mandi,
Una-Dharamshala, Solan-Rohru
- 15 nursing and five para-medical colleges
- One integrated tourism development
project
- A Himalayan Ski village
- Integrated IT and Biotechnology Parks
- Special Economic Zone (SEZ) in Kangra
district
21
Project Status, Department of Information Technology, Government of Himachal Pradesh; Ministry of Tourism,
Government of India; IL&FS; HPIDB
- 27 -

In order to boost industrial growth, the State Government has undertaken several initiatives including
announcing policies and incentives, particularly for its priority investment sectors. Policies and schemes
for priority sectors include the following:
22
Annual Administration Report FY12, Department of Industries, Government of Himachal Pradesh
Table: Key policies promoting investments
Policies
Industrial Policy, 2004
Tourism Policy, 2005
IT Policy, 2001
Hydro Power
Policy, 2007
Biotechnology
Policy, 2001
Provisions
■ Emphasizes on the development of key infrastructural sectors, such as power, housing and social
infrastructure by means of fiscal incentives
■ Addresses issues impeding industrial growth such as long procedures for setting up of industry
and obtaining permissions required under various labor laws
■ Identifies 18 thrust industries for state, including floriculture, horticulture and agro-based
industries, sugar, pharmaceuticals, paper and paper products and wool products
■ The New Industrial Policy 2013 is expected to be announced soon.
Details policies around production, distribution and sale of powers generated by small hydro power
plants such as:
■ Production up to 2 MW, reserved for state residents and cooperative societies comprising state
residents
■ Production up to 5 MW, preference to state residents or any private investor/PSU/co-operative
societies comprising state-residents
■ Production above 5 MW, power can be produced by any private investor/cooperative society
comprising state residents
■ Not more than two projects to any independent power producers
■ Up to 5 MW, State Government to acquire land for permanent structures; land for other
purposes on lease basis on government approved rates
■ Increase share of tourism to 15 percent of GSDP by 2020
■ Focuses on developing infrastructure in major tourist destination; also focuses on developing
lesser known areas
■ Outlines tourism sub-plan which integrates and coordinates with other departments to
surmount budget deficit
■ Aims at increasing investment in segments such as IT hardware, software, IT enabled services,
telecom, e-commerce etc
■ Encouraging use of IT in industries where state has competitive advantage
■ Aims at diversifying local industries into being web-enabled and attract IT companies from
elsewhere in India and overseas
■ Promotion of e-governance and e-tourism
■ Department of Information Technology to act as a single point interface for setting up an IT unit
■ Applications for setting up IT units placed before State Level Single Window Committee
■ IT Software/services deemed to be manufacturing activity for the purpose of incentives as per
Government of India approved policy
■ IT units with connected load greater than 100 KW to be charged at concessional rate of
electricity duty at 10 paisa per unit for five years from start of commercial production
■ Special packages for investment proposals of more than USD2.5 million or if company belongs to
Fortune 500 list
■ Continuous power supply to IT industry
■ Emphasis on development of new technology in biotechnology stream for agriculture, animal
husbandry and healthcare
■ State to provide infrastructural support to R&D institutions for skill development in
biotechnology
■ Focus on conservation and commercial utilization of available resources
- 28 -

State overview23
Jammu & Kashmir (J&K), a popular tourist destination, is also known for its handicrafts. The State Government has
been continually working towards encouraging various sectors, such as HydelPower, Horticulture and IT/ITeS. The
Services sector has been the key growth driver. The state has 22districts spread over an area of 222,236sq km. The
state has two capitals. Srinagar is the summer capital of the state during May-October, while Jammuis the winter
capital of the state during November-April. According to Census 2011, the state is inhabited by 12.5million people,
of which 68.7 percent are literate.
Economy
The state’s GDP recorded a CAGR of 5.8 percent during
FY08-FY13. Services sector has increased its share from
49.2 percent in FY09 to 54.9 percent in FY13. Further, the
Primary (Agriculture), Secondary (Industries) and Tertiary
(Services) sectors recorded CAGR of 2.8 percent, 2.5
percent and 9.4 percent, respectively, during FY08-FY13.
Priority sectors for investment include Hydel Power,
Tourism, Horticulture, Floriculture, Agro Processing and IT.
Other key sectors are Infrastructure, Handicrafts and
Handlooms, Pharmaceuticals, Gems and Jewellery,
Sericulture, Electronics and Education. Source: MOSPI
Power Installed capacity 2,393.5 MW (as of July 2013)
Road network Road length 26,980 Km (as of March 2011)
Sources: CEA; TRAI; Ministry of Road Transport and Highways; Airports Authority of India; Press articles
The state offers diverse investment opportunities supported both by demand and supply side factors. Pro-active
government support, proximity to the national capital, affordable labor cost and a number of higher education
institutions are some of the factors which make the state an attractive investment destination for long-term
investments.
23
CEA; TRAI; Ministry of Road Transport and Highways; Airports Authority of India; Press articles; MOSPI
24
Government of Jammu and Kashmir; Press articles; CII
347 362 383 406 431
6.5
4.5 5.7 6.1
6.1
0
5
10
0
200
400
600
GSDP (INR billion) and growth
(percent)
Jammu & Kashmir
- 29 -

Tourism
Growth supporting
factors
■ Established several tourism development
authorities
■ The State Government is playing a major
role in the tourism sector by identifying
new zones/circuits and by learning from
other states in developing tourism.
Illustratively, learning from Karnataka to
develop forest-based resorts
■ Infrastructure development, such as four
laning of roads (Pir Panjal-Banihal),
railways (Chenani-Udhampur) and multi-
level parking
■ Domestic events such as
Amarnath Yatra, Sindhu Darshan,
Gulmarg and Ladakh festivals are
popular and attract tourists
■ Spring season, ideal for floriculture, is
another period of tourist attraction
■ Srinagar Master Plan (2001-2021),
currently in the review stage, is
expected to increase hotel and lodging
construction in the state
■ Currently, the tourism sector
contributes about 7 percent to the
state’s GDP
Scope of investment
■ The Department of Tourism, estimated Kashmir’s tourism potential to be between INR8
and INR10 billion per annum. It includes:
− Pehlgam: INR1.5 billion
− Gulmarg: INR1.5 billion
− Trade from handicrafts and Shikara: INR4-5 billion
■ A number of temples in Jammu and scenic landscape of Kashmir have attracted variety of
tourists presenting diverse investment opportunities including hotels and restaurants,
projects in heritage tourism and eco-tourism, tourist facilitation desk, transportation
facilities, cable cars and ropeways and engineering, procurement and construction
companies
■ State is working towards diversifying the definition of tourism to include amusement
parks, adventure sports (water, aero), resort development, township, yoga centers and
conversion of hot springs into spas
■ Three mega projects/circuits identified by the Ministry of Tourism for development in the
state include Mubarak Mandi Heritage Complex, Naagar Nagar Circuit and Leh
Existing companies*
■ Taj
■ ITC
■ The Lalit
■ Country Inn
■ Centaur
Hydro Power
Growth supporting
factors
■ River basins, such as Chenab, Jhelum,
Indus, Ravi already house several projects
and offer potential for development of
more projects
■ Rising demand for power
■ GVK’s largest hydro power project is
being developed in the state
■ Proactive support from the
government and state agencies in
terms of capacity addition plans,
policies and concessions, bidding
process and single window
clearance mechanism
Scope of investment
■ 33 independent power producer (IPP)
projects being developed
■ State Government plans to add 6,000
MW of hydro capacity by 2018
■ Power plants set up by Government
present opportunity for national and
international players in providing
equipment or undertaking
mechanical/civil engineering
■ Hydro power potential estimated at
20,000 MW, of which 16,200 MW of
projects identified based on techno-
economic feasibility
■ Close to 450 MW of projects are
under construction by the State and
Central Government
■ Development of hydro projects
offers investment opportunities for
- 30 -

work(Turbines provided by Alstom for
INR18 billion, 240 MW Uri II hydel project
is a case in point)
EPC companies, equipment
manufacturers, transmission and
distribution companies
Existing companies*
■ GVK
■ ABB
■ Schneider Electric and Alstom
■ NHPC
■ Jaypee
■ HCC
Horticulture, floriculture and agro processing
Growth supporting
factors
■ Favorable agro-climatic conditions
resulting in high quality of produce and
leading to exports and improved earnings
■ Leader in production of apples, apricots,
almonds, walnuts and saffron that are all
exported
■ Asia’s largest Tulip Garden; other flowers
also exported from state
■ Proactively plays role in undertaking
missions (Saffron mission),
identifying areas such as organic
farms promoted in Guri, Tangdor,
Kupwara, Shopian, Badgaon and
conducting studies for vegetables
Scope of investment
■ Investment opportunities in organic
farming of walnuts and almonds because
of favorable climate
■ Apiculture (honey production), micro
irrigation, activities, such as
manufacturing of perfumes and essence
and strawberry production
■ High production of crops/fruits
presents opportunities for:
- Processing raw products into
fruit juices, pulp, jams or jellies
- Sorting and grading
- Packaging
- Cold storage and warehouses
- Transportation
Existing companies*
■ Hindustan Unilever
■ Dabur
■ Golden Apple
■ Godrej Agrovet
■ Kanwal Foods and Spices
■ Harshna Naturals
Project 1: Ramban to Banihal Highway Project Project 2: Power distribution in Jammu and
Srinagar
■ Approximately 32.1 Km long
■ Expected to reduce distance between two capital
cities, i.e., Jammu and Srinagar, by 50 Km
■ Approximate project cost of INR13.1 billion; to be
completed within five years from commencement of
construction
■ National Highways Authority of India (NHAI) to
undertake development and rehabilitation,
strengthening and four laning of Ramban to Banihal
section of NH-1A, from 151 Km to 187 Km on
Design, Build, Finance, Operate and Transfer basis
As of July 2013
■ NHAI announced payment of INR260 billion to
private developers during concession period of 17
years, excluding three years of construction
■ In July 2013, J&K Government announced that
the power distribution in Jammu and Srinagar
cities will be awarded on PPP mode by
October 2013
■ The project aims at ensuring uninterrupted
supply of power in these cities without
increasing tariff or putting any additional
burden on the consumers
■ The project is expected to bring down the
overall aggregate technical and commercial
losses substantially, which stood at 72.9
percent in FY11 as against an all India level of
26.1 percent
25
Government of J&K; Press articles
Hydro Power
Scope of investment
- 31 -

Project 3: Other Upcoming Projects/opportunities in J&K
■ Mini-hydel projects: In July 2012, the J&K Energy Development Agency (JAKEDA) announced to develop six
mini-hydel power projects of 9.5MW capacity in the state under PPP mode
■ Tourism-related projects:
- In June 2013, the J&K Government announced plans to construct several ropeways in three regions of the
state
- Work on several cable car projects is in the pipeline; These include cable cars from Peerkho to
Mahamaya,Mahamaya to Shahabad in Bahu Fort and one at Patnitop
- Development of amusement parks, adventure sports parks and tourist resorts in the Valley of Gurez, the
Valley of WularLake and the Valley of Wadvan
- Evaluation of areas such as Gulabgarh, Kalakot, Kishtabagh and Ladakh for conversion of hot springs into
spas
■ Manufacturing sector: Projects can be developed in partnership/guidance/collaboration with IRCON
International Ltd.; Given the tax benefits in the state, J&K could be a potential manufacturing hub
■ IT/ITeS:The Government is exploring the possibility of developing industrial estate Rangrethas a centre for IT
services given the availability of around 40,000 IT engineers and a large number of other IT trained people
■ E-Governance: Significant scope for further development of e-governance platform also exists in the state
■ Cold storage: In July 2013, the State Government announced that a project under PPP mode is being
prepared to establish a multi-utility/commodity cold storage at Narwal vegetable and fruit mandi
■ Urban development: Large un-developed land and concentration of population in a few areas provides
immense investment opportunities for city/town planning and urban development
■ Educational and vocational institutes: Development of higher educational institutes, and a fashion technology
institute offer good investment opportunity
■ Handicrafts: A craft street has been built over 2 Km to house a large number of artisans and tie-ups with
exporters are being looked into
In order to boost industrial growth, the Government has undertaken several initiatives recently including
announcing a special package for industrial development. There are many subsidies given under this scheme so as
to boost growth. The major focus is on IT, renewable energy and industrial policy among others. The key policies
undertaken by the government are as follows:
26
Policy documents of Jammu and Kashmir; Ministry of Commerce and Industry; Press articles
Project 1: Ramban to Banihal
Project divided into six sub-projects—widening of Jammu-Udhampur road (65 Km), Chenani-Nashri tunnel
(9.2 Km), Ramban-Udhampur road (43 Km), Banihal-Ramban road (36 Km), Qazigund-Banihal road (15.25
Km) and Srinagar-Banihal road (67.7 Km)
Project’s main structure includes two long tunnels (Chenani-Nashri and Qazigund-Banihal), 12 short tunnels
of 6.2 Km, 34 major bridges and 24 via ducts
Project divided into six sub-projects—widening of Jammu-Udhampur road (65 Km), Chenani-Nashri tunnel
(9.2 Km), Ramban-Udhampur road (43 Km), Banihal-Ramban road (36 Km), Qazigund-Banihal road (15.25
Km) and Srinagar-Banihal road (67.7 Km)
Project’s main structure includes two long tunnels (Chenani-Nashri and Qazigund-Banihal), 12 short tunnels
of 6.2 Km, 34 major bridges and 24 via ducts
■
■
- 32 -
Highway Project (Continued..)

Table: Policies to promote investments
Policies Provisions
J&K Industrial Policy, 2002-15 ■ 100 percent exemption from Excise duty for 10 years from production
commencement to new/existing industrial units/parks/export processing
zones etc.
■ Capital investment subsidy at the rate of 15 percent up to INR3 million to
new industries in notified locations
■ Interest subsidy at the rate of 3 percent on working capital loan for 10
years after commencement of commercial production
J&K State Hydroelectric Projects
Development
Policy, 2011
■ Concession period: 35 years
■ Incentives from the Ministry of New and Renewable Energy (MNRE):
Projects less than 25 MW are eligible
■ Water usage charge: NIL for 10 years
■ Income tax: Exemption for micro hydel projects as per Government of
India policy
■ Time period: Financial closure and all clearances to be obtained in T+40
months for 25-100 MW project and within T+30 months for 2-25 MW
Solar Power Policy for J&K, 2013 ■ Objective: To put in place investment climate to leverage the Clean
Development Mechanism
■ Minimum capacity: 1 MW, if MNRE launches any scheme for lower
capacity plant, then that shall also be considered.
■ Incentives: No entry tax; land by the State Government; no royalty
required in the form of free power; exemption from demand cut up to 50
percent of the installed capacity solar power producer
J&K Draft IT Policy, 2012 and J&K
IT Policy, 2004
■ Expansion of IT infrastructure through PPP
■ Development: IT parks, electronic governance and e-commerce; state
departments to spend 1.5 percent of budget on IT-related activities
■ State designated agency: Jammu & Kashmir e-Governance agency; set-up
an Industry Promotion Cell to help with information on establishing IT
units, HR outsourcing and legal issues
■ Provide single window clearance
■ Customized package: For investment above INR100 million
■ Capital subsidy at the rate of 30 percent to new units with maximum
limit (large units: INR90 million; medium: INR45 million; small: INR15
million; micro: INR 3 million) subject to first ten units per annum
■ Exemptions: Stamp duty; CST and GST as per industrial policy; excise
dutyand service tax for 10 years
■ Expansion/modernization/diversification projects by more than 25
percent to receive benefits equivalent to new projects
■ Above mentioned incentives to be provided for minimum 50 percent
employment to J&K residents
■ Interest subsidy: For hardware and software as per other industries
■ Location of units: IT software units may be located in residential areas
■ Lending: Banks and financial institutions to accord priority status to
hardware/software/IT
■ Special incentives package: To be offered for investment of more than
INR100 million
- 33 -

State overview27
Punjab has been traditionally known to be an agrarian economy with high share of agriculture. Gradually, other
sectors— manufacturing and services, have increased their contribution to the economy, with services growing
at a faster pace. With an area of 50,362 sq km 22 districts, it is the 19th
largest state in India. Chandigarh is the
capital of the state. Other prominent cities include Ludhiana, Amritsar, Jalandhar and Mohali. According to Census
2011, the state is inhabited by 27.7 million people, of which 76.7 percent are literate.
Economy
The state’s GDP recorded a CAGR of 6.0 percent during
FY09-FY13. Services sector has increased its share from
43.2 percent in FY09 to 48.7 percent in FY13. Further, the
Primary (Agriculture), secondary (Industries) and Tertiary
(Services) sectors recorded CAGR of 1.0 percent, 5.4
percent and 9.2 percent, respectively, during FY09-FY13.
The New Industrial Policy (announced in June 2013)
supports the growth of industries and services sectors.
Under the policy, the State Government has approved a
liberal package of fiscal incentives for integrated textile
units, manufacturing, agro and food processing and
electronics sectors.
Priority sectors for investment include Textiles, Renewable
Energy, IT, Agro Processing and Infrastructure. Other key
sectors are Manufacturing, Real Estate, Tourism,
Entertainment, Biotechnology, Health, Education, Financial
Services and Retail.
Source: MOSPI
Investment inflow
The aggregate FDI investment for Punjab, Haryana,
Himachal Pradesh and Chandigarh was INR55.6 billion
(USD1.2 billion) during April 2000-March 2013. The FDI
investment has been greatly impacted by the global
slowdown. Positively, the past trend shows increased
potential for investing in Punjab.
Source: DIPP
27
CEA; TRAI; CII; Ministry of Commerce and Industry; Ministry of Road Transport and Highways
0
2
4
6
8
0
500
1,000
1,500
2,000
Graph: GSDP (INR billion) and
growth (percent)
GSDP Growth rate
0
100
200
300
400
500
FY10 FY11 FY12 FY13
Graph: FDI (USD million)
Punjab
- 34 -

Power Installed capacity 7,509 MW (as of June 2013)
Aviation No. of airports 6 (as of November 2012)
Road network Road length 84,193 Km (as of March 2011)
Sources: CEA; TRAI; CII; Ministry of Commerce and Industry; Ministry of Road Transport and Highways
The state offers diverse investment opportunities supported both by demand and supply side factors. Pro-active
government support, proximity to the national capital, affordable labor cost and a number of higher education
institutions are some of the factors which make the state an attractive investment destination for long-term
investments.
Overview of priority sectors for investment
Textiles
Growth supporting
factors
■ Punjab is among the largest producers of
cotton and blended yarn as well as mill-
made fabrics in India
■ Abundant raw material supported by
large labor pool, cluster development
and government policy have made
Punjab a well-known textile hub in India
■ The State Government has announced
several tax incentives for Textiles, which
is a major thrust area, in the New
Industrial Promotion Policy, 2013 for
establishing new units and expansion of
existing units
■ The State Government has already put
in place single window mechanism to
expedite implementation of projects
■ The World Bank, in its study ’Doing
Business 2009,’ has adjudged Ludhiana
as the best place for carrying business
operations in India. Ludhiana is known
for its wide variety of garments
(readymade, woolen and hosiery)
■ The establishment of Northern India
Institute of Fashion Technology in
Mohali is expected to aid availability of
skilled manpower to the textile sector
Scope of investment
Punjab’s Textile sector offers diverse investment opportunities across the value chain —
from raw materials to finished products (garments). These processes include yarn, ginning,
spinning, weaving, bleaching, dyeing, fabrics, garment manufacturing, threads, woolens
and hosiery
Existing companies*
■ Vardhman Group
■ JCT Ltd
■ Nahar Group
■ Prince Textile Mills
Growth supporting
factors
■ More than 300 days of sunshine per
annum; solar insulation estimated at 4-7
kwh/sq meter per day
■ Rising demand for power
■ Developing technology to lower cost of
energy production
■ Favorable policies and government
schemes of renewable purchase
obligation and renewable energy
certificates
■ Rooftop program where solar
photovoltaic projects set on
government buildings/universities
■ Single window clearance mechanism
■ Diverse investment opportunities for
plants of variable sizes using a range of
diverse sources — wind, solar, mini
hydel and biomass
■ Agro residue estimated at 10 million
tons can be used in biomass
28
Government of Punjab; The World Bank; Company website; Press articles
Renewable energy
- 35 -

■ 40 percent subsidy on solar pumps to
farmers
Scope of investment
■ As of March 2013, installed hydro power
capacity of approximately 3,015 MW
besides renewable power capacity of 388
MW (of which solar is 9 MW)
■ The third highest installed solar power
capacity in the northern region after
Rajasthan and UP
■ Investment opportunities in solar power
generation companies, transmission and
distribution companies, equipment
companies, engineering, procurement
and construction companies solar wafer
manufacturers and solar-based
appliances manufacturers
■ 250 MW of solar photo volataic projects
awarded by Punjab Energy
Development Agency on Build-Operate-
Own (BOO) basis
■ Estimated investment of INR20 billion
■ Immense potential for mini hydel on
account of various canals — Bhatinda,
Kotla, Abohar, Sidhwan and Bhakra
■ Estimated power potential to be
developed by 2022: Biomass (600 MW),
waste to energy (50 MW),
Small/mini/micro hydro (250 MW),
solar (1,000 MW)
Existing companies*
■ Azure Power
■ Soma Enterprise
■ Sovox
■ Welspun Solar
■ Lanco
■ Moserbaer Clean Energy
■ PunjLlyod
■ Orient Green
■ Viatom Energy
Agribusiness
Growth supporting
factors
■ Agribusiness is one of the key focus areas
of the New Industrial Policy, 2013 that
has offered several tax incentives for the
agro/food processing sector
■ Highest share in procurement of wheat
and rice; in FY13, the state accounted for
nearly 34 percent of wheat procurement
and 30 percent of rice procurement
■ 5,000 hectares identified to create a
land bank for new industrial projects
■ Punjab Agro-Industries Corporation
(PAIC) facilitates investment in the
sector along with adoption of new
technology
Scope of investment
Large crop production presents investment
opportunities in the areas of:
■ Fertilizers, pesticides, manures
■ Farm machinery and equipment (tractors,
water sprinklers, power gensets etc.)
■ Micro irrigation techniques
■ Cold storage and warehouses
■ Transportation companies
Production of fruits and vegetables presents
investment opportunities for:
■ Processing of fruits and vegetables into
fruit juices, pulp, jams, jellies, ketchup,
sauces, pickles, etc.
■ Sorting, grading, packaging, etc.
Other opportunities include Poultry and
Dairy
Existing companies*
■ Nestle India
■ Jagatjit Industries
■ Verka
Renewable energy
- 36 -

Punjab Government has been very aggressive on the implementation front as well. It has invested 47.4 percent,
45.3 percent and 30.9 percent in the industrial park, multiplex and healthcare and medical education, respectively,
of the proposed investment during 2002-2011.
Table: Total and actual investments
Sector No. of
approved
projects
Proposed
investment
Actual
investment
(2007-2011)
Actual investment
during 2007-2011
(from projects
approved during
2002-2007)
Total investment
(2002-2011)
No. Investment
(INR billion)
No. Investment
(INR billion)
No. Investment
(INR billion)
No. Investment
(INR billion)
Manufacturing 54 153.7 12 9.2 20 29.8 32 39.0
Industrial parks 10 17.5 2 0.5 7 7.9 9 8.3
Multiplex 13 33.1 3 2.2 25 12.8 28 15.0
Hotel 16 9.9 4 0.4 10 2.1 14 2.5
Super mega mixed
use integrated
industrial park
project
8 317.0 7 31.6 - - 7 31.6
Healthcare and
medical education
1 1.1 1 0.4 - - 1 0.34
Total 102 531.9 29 44.2 62 52.5 91 205.7
Source: The Government of Punjab
Plans and completed projects
The state has various projects in different phases of development. The state has introduced Town Master Planning
in six towns identified— Amritsar, Bhatinda, Jalandhar, Ludhiana, Mohali, Patiala— paving the way for their
planned development. The Punjab Government plans to provide 147 cities/towns with basic amenities (power,
water, sewerage, waste management) at an investment of INR100 billion by 2016.In addition, the state expects to
be a power surplus state by FY14.
Mega projects sanctioned (March 2007-till date)
The Punjab Government has sanctioned several mega projects in different sectors including manufacturing,
industrial parks, hotels, super mega mixed use integrated industrial park projects, healthcare and medical
education. Out of a total proposed investment of INR531.9 billion, the total investment by Punjab during 2002-
2011 was at INR205.7 billion (38.7 percent).
- 37 -

Availability 5,872 8,884 11,484
Generation 5,872 7,564 8,884
New Plants 0 1,320 2,600
Surplus (Deficit) (2,342) 19 1,917
Source: The Government of Punjab
Three thermal projects of total capacity of 3,920MW are planned to be commissioned at Talwandi Sabo, Rajpura
and Goindwal Sahib by the end of 2015. It would lead to an increase in the power generation capacity of Punjab.
Additionally, in July 2013, the Punjab Government awarded the 250MW solar power projects to 26 solar
development companies. The Government aims to produce 1GW from renewable resources over four years, with a
quarter coming from solar energy. Of the 26 developers, 18 proposed projects are of between 1MW and 4MW
while the remaining 11 projects would generate between 5MW to 30MW. In addition, Punjab Energy Development
Agency (PEDA) is expected to award around 300MW in biomass capacity agreements.
The Lotus Integrated Textile Park was inaugurated in July 2013 in Barnala which is spread across an approximate
area of 100 acres. The project incurred a cost of INR1.1 billion and was completed under the Scheme for Integrated
Textile Park (SITP) scheme. This textile park would generate a direct employment for 1,500 people.
In addition, several projects are in the development stage in Punjab. These include:
■ Mega Logistic park in Ludhiana
■ Integrated Education hub in Jalandhar
■ Textiles hub in Malwa
■ Food hub (rice derivatives) in Amritsar andFerozepur
■ IT hub in Mohaliand Amritsar
■ Petro park in Bhatinda
■ Automobiles hub in Patiala
■ Sugar hub in Amritsar andGurdaspur
■ Hosiery, garments, knitting, weaving in Ludhiana
■ Hand tools, Sports goods and Leather goods in Jalandhar
Project 1: Ludhiana Metro Rail Project Project 2: Recreational Amusement Park,
Ludhiana
■ Length: approximately 29 km
■ Implementation agency: Ludhiana Metro Rail
Corporation, special purpose vehicle (SPV) created
for the purpose
■ Project completion year: 2018-19
■ Expected investment: INR98.40 billion (per km cost
expected to be INR1.75 billion for elevated track and
INR3.25 billion for underground track)
Project Background
■ Detailed project report (DPR)approved by the
Punjab Cabinet in June 2011
■ The draft bill for the enactment of the Punjab
Horse Race (Regulation and Management) Act
2013 was approved by the Punjab Cabinet in
May 2013
■ The act to facilitate the set up, management
and operation of racecourses and betting
activities; Additionally, licensing, regulation,
control and management of horse races would
also be provided
■ Project, which is estimated to cost INR6 billion,
to be developed by Punjab Infrastructure
29
Press articles
Table: Power generation: plans and estimates
In MW FY13 FY14 FY15
Demand 8,214 8,865 9,567
- 38 -

■ Execution of metro project on Build Operate
Transfer (BOT) model approved by the State Cabinet
■ The project report was submitted to Union
Government for final approval in November 2012
Development Board (PIDB)under Public Private
Partnership (PPP) mode
■ A planned Recreational Amusement Park to
come up near Mattewara area on the banks of
Sutlej river in Ludhiana, Punjab
■ The main recreational activities to include a
turf club, an entertainment city, lakes, safari, a
five-star hotel, colleges, a jungle retreat, water
park and many other amusement places
■ Infrastructure Leasing and Financial Services
Ltd. (IL&FS), engaged to study all technicalities
involved in the project and feasibility of
different sections proposed in the park,
submitted its detailed report in August 2012
■ Earlier in June 2012, the district administration
identified around 1,400 acres in Mattewara as
part of land pooling
Project 3: Textile Park, Muktsar Sahib
■ A Greenfield Mega Integrated Textile Park at Village
Panjava, Tehsil Malout in Muktsar Sahib, Punjab
announced by SEL Group at an investment of
approximately INR15 billion
■ Project commissioned by SEL Textilesin April 2013
■ SEL Textiles commissioned the yarn spinning section
with a capacity of nearly 200,000 spindles in phase I
■ Total capacity of 188,160 spindles in ring spinning, 40
million meters per annum in denim fabric and 8
million pieces of denim garments per annum
■ Cotton, the major raw material for the project, to be
procured from the northern belt consisting of Punjab,
Haryana and Rajasthan
Source: Government of Punjab; Press articles
Government policies and incentives30
In order to boost industrial growth, the Government has undertaken several initiatives including announcement of
a few policies, particularly in the textiles sector. There are several important policies and schemes in the state.
Policies and schemes for some of the priority sectors include the following:
Key policies to promote investments
Draft Industrial & Investment
Promotion Policy 2013
■ Minimum investment amount reduced from INR1 billion to INR400
million
■ The policy has announced several initiatives for IT, Agro, Textiles and
Manufacturing sectors
Policies Provisions
Policy for Development of
Textile Park
■ Minimum investment: INR2.5 billion in Bhatinda, Mansa, Faridkot,
Ferozepur, Muktsar Sahib, Sangrur and Barnala
■ Market fee/infrastructure development cess: 50 percent exemption
for 10 years or up to 50 percent of capital investment
Draft Agriculture Policy for
Punjab, 2013
■ Addressed important issues, such as crop productivity, irrigation,
adaptation to climate change, environmental pollution, soil
management, farm mechanization, horticulture development, post -
harvest handling, allied agriculture activities (poultry, fish, dairy etc.)
and credit
Punjab Minor Mineral Rules,
2013
■ Gives priority to first discoverer of new mineral, followed by
individual/entity that wants to set a mineral-based industry; lease
granted for five years with two renewals
Housing and Urban
Development Policy, 2013
■ Addresses issues pertaining to common building rules, potential
zones, development controls, incentives for constructing green
buildings and affordable houses, rationalization of charges, etc.
Policy for Development of
Integrated Sugar
■ Minimum fixed capital investment of INR2 billion, mill capacity of
3,000 tons crushing in a day (TCD) and power generation of 15 MW;
30
Government of Punjab; Press articles
Project 1: Ludhiana Metro Rail Project
- 39 -
Project 2: Recreational Amusement Park,
Ludhiana

Complexes 100 percent electricity duty exemption for 10 years on power export
■ Sugar complex with minimum fixed capital investment of INR4
billion: minimum capacity of 5,000 TCD; exemption of letter of Intent
fee for D-2 fees; buy-back power agreement with Punjab State
Transmission Corporation Limited (PSTCL) for minimum five years
Excise Policy, 2013-14 ■ Earmarked INR830 million for education; INR600 million for sports;
INR180 million for preservation and maintenance of heritage
buildings
Mega projects Concession
■ Manufacturing, industrial park and hotel projects: 5 percent
electricity duty exemption for five years
■ Multiplex projects: 50 percent electricity duty exemption for five
years
Decision of Empowered Committee (March 2013)
■ Implementation and investment period may be counted from date of
signing of agreement
■ Investment quantum to be taken into account from submission of
application to nodal agency
New and Renewable Sources of
Energy Policy , 2012
■ Increase share of new and renewable sources of energy to 10
percent of total installed electricity capacity by 2020
■ Exemptions: Stamp duty; registration fee; change of land use;
external development charges etc.
■ Nodal agency: Punjab Energy Development Agency
■ Single window clearance mechanism
Mega Housing Projects Policy,
2013 (upcoming)
■ Aims to provide affordable housing
■ Permissible area: Less than 20 percent of project area for group
housing (not applicable for mixed land use)
In addition to policy formation or amendments, following are some of the incentives being offered under Industrial
Promotion Policy, 2013.
Incentives to promote investments
Sector Incentives
Manufacturing
Textiles ■ VAT and CST retention
- FCI between INR1.5 billion and INR5 billion: 80 percent VAT +80
percent CST of FCI with cumulative ceiling of 80 percent of FCI;
for 11 years from application
- FCI of more than INR5 billion: 90 percent VAT +80 percent CST
with cumulative ceiling of 90 percent of FCI; for 3 years from
application
■ Electricity duty and property tax: 100 percent exemption (captive
permitted only when power sold to Punjab State Power Corporation
Ltd. (PSPCL)); eligibility period of 11 years and 13 years for FCI of
INR1.5-5 billion and more than INR5 billion, respectively
■ Stamp duty: 100 percent exemption on real estate purchased/leased
within 3 years from approval date
■ Market fee/infrastructure development cess/rural development
fund: 50 percent exemption on cotton purchase for 11 years and 13
years for FCI between INR1.5 and 5 billion and more than INR5
billion, respectively
Policies Provisions
- 40 -

Agro/Food processing ■ Electricity duty and property tax: 100 percent exemption for 10-12
years (depending on investment)
■ Stamp duty: 100 percent exemption
Hardware and IT IT/ITeS/Knowledge industry in Mohali and Amritsar only (minimum
investment of INR10 million)
■ VAT and CST: Exemption of 80 percent for 10 years
■ Electricity duty: Exemption for including captives only if power sold
to PSPCL
■ Stamp duty: 100 percent exemption for first transaction
■ Property tax: Exemption for 10 years
■ PPCB clearance: No objection certificate is not required for units
notified by Department of Information Technology
■ Exemption from exemption under Labor Laws
■ Other incentives
Electronic Hardware manufacturing (minimum investment of INR50 million)
■ VAT and CST: Exemption of 80 percent for 10 years
■ Electricity duty: Exemption for including captives only if power sold
to PSPCL
■ Stamp duty: 100 percent exemption for first transaction
■ Preferential market access
■ Special incentive for semi-conductor wafer fabrication
■ Other incentives
Sector Incentives
- 41 -

State overview31
Rajasthan has a rich industrial base supported by its vast resource base, expanding infrastructure, and government
support. With an area of 342,239 sqkm, it is the largest state in India and comprises 33 districts. Jaipur is the
capital of the state. Other prominent cities include Udaipur, Ajmer, Kota, Jodhpur and Alwar. According to Census
2011, the state is inhabited by 68.6 million people of which 67.1 percent are literate.
Economy
State economy grew at a CAGR of 9.2 percent during FY08-
FY12. This growth has been supported by the Services
sector that grew at a CAGR of 10.4 percent during the
same period and accounted for 47.5 percent of the GSDP
in FY12. Industry and agriculture also recorded a healthy
growth of 8.4 percent and 8.9 percent and accounted for a
share of 31.1 percent and 21.4 percent, respectivelyin
FY12.
Priority sectors for investment include Auto and Auto
Components, Glass and Ceramics, Solar Power,
Petrochemicals, IT/ITeS, Textiles and Agro Processing.
Other key sectors are Tourism, Renewable Energy, Mineral
Processing, Cement, Education, Gems and Jewellery,
Handicrafts, Biotechnology, Financial Services, Retail,
Infrastructure and Logistics, and Real Estate.
There are 323 industrial areas and 8 growth centers in the
state.
Source: MOSPI
31
Government of Rajasthan; Census 2011; MOSPI; Ministry of Commerce and Industry; CEA; TRAI; Airports Authority of India
1600 1745 1862
2147 2278
5.1
9.1
6.7
15.3
6.1
0
10
20
0
1000
2000
3000
Figure: GSDP (INR billion) and
growth (percent)
GSDP (INR billion) Growth rate (percent)
Rajasthan
Investment inflow
The state witnessed fluctuating FDI inflowsduring FY09-FY13.
However, the investments have started picking up during
FY13. In fact, in FY13, the investment grew four times from
FY12 levels. On an aggregate basis, the state witnessed an
inflow of USD685 million during April 2000-April 2013.
Source: DIPP
343
31 51 33
132
0
200
400
FDI (in USD million)
- 42 -

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