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RAJASTHAN

November 2010

RAJASTHAN

November 2010

Investment climate of a state is determined by a mix of factors

Resources/Inputs

Incentives to industry

Procedures for entry and exit of firms


Industrial regulation, labour regulation, other
government regulations
Certainty about rules and regulations
Security, law and order situation

Skilled and cost-effective labour


Labour market flexibility
Labour relations
Availability of raw materials and natural
resources

Investment
climate of a state

Regulatory framework

Physical and social


infrastructure
Condition of physical infrastructure such as
power, water, roads, etc.
Information infrastructure such as telecom, IT,
etc.
Social infrastructure such as educational and
medical facilities

Tax incentives and exemptions


Investment subsidies and other incentives
Availability of finance at cost-effective terms
Incentives for foreign direct investment (FDI)
Profitability of the industry

RAJASTHAN

November 2010

Contents
Advantage Rajasthan
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Rajasthan

ADVANTAGE RAJASTHAN
Rajasthan November 2010

Rajasthan State profile

Covering an area of 342,239 sq km, Rajasthan is


the largest state in India.

The state has 33 administrative districts. Jaipur is


the state capital; Jaisalmer, Udaipur, Jodhpur, Ajmer,
Bikaner, Alwar, Amber and Chittorgarh are the
other key cities and towns in the state.

There are two major rivers flowing through


Rajasthan: the Chambal and the Luni.

The state has nine agro-climatic zones and a


variety of soils that support cultivation of crops
such as wheat, rapeseed, mustard, soy bean, bajra
(millet), maize and cotton.

The most commonly spoken language of the state


is Hindi. Marwari, Jaipuri (Dhundhari), Mewari and
Malvi are the other dialects popular in the state.
English is the medium of education in most
schools.
Source: Maps of India

ADVANTAGE RAJASTHAN
Rajasthan November 2010

Advantage Rajasthan (1/2)

Easy access to largest consumer markets


Rajasthan touches six major states of the Northern,
Western and Central India. It is a natural corridor
between the wealthy Northern and the prosperous
Western states of the country, which makes it an
important trade and commerce centre.
Facilitating infrastructure
Rajasthan has well-developed social, physical and
industrial infrastructure as well as good virtual
connectivity. The state is developing sector-specific
infrastructure such as special purpose industrial parks
and special economic zones for exports of handicrafts, IT
and electronic goods.

Policy and fiscal incentives


The state offers a wide range of fiscal and policy
incentives for businesses, through sector-specific policies
for tourism, biotechnology, IT and ITeS industries.
Source: Maps of India

ADVANTAGE RAJASTHAN
Rajasthan November 2010

Advantage Rajasthan (2/2)


Conducive environment for industrial growth
Rajasthan has favourable industrial-relations
environment with negligible incidents of labour
unrest. In addition, the law situation in the state
ensures good working environment.
Basket of unexploited resources
The state offers a variety of unexploited agricultural
and mineral resources, which is indicative of scope
for value addition and exports.

Competent talent pool


Rajasthan has been investing in capacity building
through development of a strong institutional
network at all levels. The state has 1,050 colleges
including 80 engineering colleges, 58 polytechnic
institutes and 846 industrial training institutes (ITIs).
Unique tourist attractions
Rajasthans rugged forts, beautiful palaces,
picturesque Thar Desert, bird sanctuaries and
national parks, lively fairs and festivals, lakes and
mountains, fascinating handicrafts and colourful
culture make the state an attractive destination for
domestic and foreign tourists.

Source: Maps of India

ADVANTAGE RAJASTHAN
Rajasthan November 2010

Rajasthan in figures (1/2)


Parameter

Rajasthan

All-states

Source

GSDP as a percentage of all states


GSDP

4.5

100.0

CMIE, as of 2007-08, current prices

Average GSDP growth rate (%)*

11.5

11.8

CMIE, 2000-01 to 2007-08, current


prices

Per capita GSDP (US$)

684.9

992.5

CMIE, as of 2007-08, current prices

Installed power capacity (MW)

5,050.4

159,398.5

Central Electricity Authority, as of


March 2010

GSM cellular subscribers (No)

25,487,398

456,586,162

Cellular Operators Association of


India, as of June 2010

Broadband subscribers (No)

145,449

4,981,976

National highway length (km)

5,585

70,548

133

Airport Authority of India

Literacy rate (%)

60.4

64.8

Census of India, 2001

Birth rate (per 1,000 population)

27.5

22.8

Ministry of Health and Family


Welfare, RHS Bulletin, March 2008

Economy

Physical infrastructure

Airports (No)

As of October 2008
Ministry of Road Transport &
Highways, Annual Report 2008-09

Social indicators

*Calculated in Indian rupee terms

ADVANTAGE RAJASTHAN
Rajasthan November 2010

Rajasthan in figures (2/2)


Parameter

Rajasthan

All-states

Source

FDI inflows (US$ billion)

0.5

120.2

Outstanding investments (US$ billion)

53.6

1,972.6

PPP projects (No)

54

515

www.pppindiadatabase.com

SEZ (No)

363

Notified as of July 2010,


www.sezindia.nic.in

Ease of doing business


Department of Industrial Policy and
Promotion,
April 2000 to May 2010
CMIE, as of March 2010

Industrial infrastructure

PPP: public private partnership, SEZ: special economic zone

Parameter

Rajasthan Government

Policy support

Sectors with specific policies

Healthcare, biotechnology, IT and ITeS, tourism, non-conventional


energy

Availability of labour

Adequate skilled labour available

ADVANTAGE RAJASTHAN
Rajasthan November 2010

Key industries with policy thrust and factor advantages


Industry attractiveness matrix

High

Biotechnology

IT/ITeS and
Electronics

Policy thrust

Tourism
Auto
components

Cement

Medium

Mining and
metals

Low

Medium
Factor advantage

High

*Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital

RAJASTHAN

November 2010

Contents
Advantage Rajasthan
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Rajasthan

10

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


Rajasthan

November 2010

Socio-economic snapshot of Rajasthan


Parameters

Rajasthan

Capital

Jaipur

Geographical area (sq km)

342,239

Administrative districts (No)

33

Population density (persons per sq km)*

165

Total population (million)*

56.5

Male population (million)

29.4

Female population (million)

27.1

Population growth rate 1991-2001 (%)

17.3

Sex ratio (females per 1,000 males)*

921

Literacy rate (%)*

60.4

Male (%)

75.7

Female (%)

43.9

Average life expectancy (years)


Male
Female

62.2
62.8

Sources: Economic Survey of Rajasthan 2009-2010, Directorate of Economics and Statistics


*Census 2001

11

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


Rajasthan

November 2010

Rajasthans GSDP

At current prices, the Gross State Domestic


Product (GSDP) of Rajasthan was about US$
46.4 billion in 2009-2010.

Rajasthans GSDP
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00

The average annual GSDP growth rate, from


1999-2000 to 2009-2010 was about 10.1 per
cent.

46.4
43.8
43.9
36.5
28.6
25.9
25.5
19.4
19.1
17.1
17.8
0.0

10.0

20.0

30.0

US$ billion
Source: CMIE

12

CAGR
10.1%

40.0

50.0

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


Rajasthan

November 2010

Rajasthans NSDP

At current prices, the Net State Domestic


Product (NSDP) of Rajasthan was about US$
40.4 billion in 2009-2010.

Rajasthan NSDP
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00

The average annual NSDP growth rate between


1999-2000 and 2009-2010 was about 9.8 per
cent.

40.4
38.3
38.2
31.8
24.7
22.6
22.5
16.8
16.8
15.1
15.9
0.0

10.0

20.0

30.0

US$ billion
Source: CMIE

13

CAGR
9.8%

40.0

50.0

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


Rajasthan

November 2010

The tertiary sector has an increasing share in Rajasthans


economy

In 2009-2010, the tertiary sector contributed


45.2 per cent to the states GSDP at current
prices, followed by secondary sector (30.0
per cent).

Percentage distribution of GSDP


CAGR
42.2

45.2

11.0%

30.0

11.9%

32.0

24.7

7.5%

1999-2000

2009-2010

The share of the secondary sector in GSDP


was driven by manufacturing that registered a
growth of 9.7 per cent between 1999-2000
and 2009-2010.

25.8

The share of the primary sector in GSDP was


24.7 per cent in 2009-2010 vis--vis 32.0 per
cent in 1999-2000, agriculture contributing
the major share.

Primary Sector

Source: CMIE

14

Secondary Sector

Tertiary Sector

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


Rajasthan

November 2010

Per capita GSDP

In 2009-2010, Rajasthans per capita GSDP at current prices was US$ 699.2.

The per capita GSDP at current prices increased at a CAGR of 7.9 per cent from 1999-2000 to 20092010.
Per capita GSDP
800.0
700.0

500.0
US$

672.4

2007-08

2008-09

699.2

580.0

600.0

400.0

684.9

325.9

305.4

1999-00

2000-01

333.0

332.8

2001-02

2002-03

429.2

427.7

2003-04

2004-05

462.4

300.0
200.0
100.0
0.0

Source: CMIE

15

2005-06

2006-07

2009-10

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


Rajasthan

November 2010

Distribution of households by income

The estimated percentage of population in Rajasthan below poverty line is 12.1 per cent as compared
to 26.1 per cent at the all-India level.

The share of urban households in educated and self-employed category in the state is in line with the
all-India average.
Distribution of urban households by SEC*

Distribution of rural households by SEC*


E2

52.6

R4

32.4

R3

B1
A2

4.6
4.1

R1
0.00

10.00

9.6
8.3
9.2
7.9

B2

10.3
11.8

Rural
20.00

30.00

Rajasthan

40.00
All-India

2.5
3.5

A1

50.00
60.00
In per cent

0.00

Source: BW Marketing Whitebook, 2009-2010


*See Annexure for socio-economic classification (SEC) of households

16

5.00

6.2
6.6

10.00
Rajasthan

20.4
21.6

18.5
20.0

40.6

R2

12.0
11.7

E1

43.4

18.5

23.6

Urban
15.00
All-India

20.00
25.00
In per cent

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


Rajasthan

November 2010

Consumer expenditure on household goods and services

Rajasthan is ahead compared to all-India in share of per capita expenditure on food.

With regards to share of expenditure on education and medical, the state is comparable to the all-India
level.
Share of average monthly per capita expenditure on household goods and other services
50.0%
40.0%

60.0%

Urban

39.6%42.4%

52.3% 53.9%

Rural

50.0%
40.0%

30.0%

30.0%

20.0%
7.1% 8.0%

10.0%

20.0%
5.2% 4.5%

4.2% 3.2%

10.0%

0.0%

3.7% 2.8%

6.3% 5.8%

3.6% 2.2%

0.0%
Food

Education
All-India

Medical

Durable
goods

Food

Rajasthan

Education
All-India

Source: Household Consumer Expenditure in India, 2007-08 NSS 64th Round

17

Medical
Rajasthan

Durable goods

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


Rajasthan

November 2010

Key industries in Rajasthan

The natural resources, policy incentives and


infrastructure in the state are favourably suited for
investments in sectors such as cement, IT and
ITeS, ceramics, tourism, automotive and agrobased industries.

Key industries in Rajasthan

Cement

Auto and auto-components

IT and ITeS

Bureau of Investment Promotion (BIP) and


Rajasthan Industrial Development and Investment
Corporation (RIICO) are responsible for
promoting investments and developing industrial
infrastructure in the state.

Ceramics

Mining

Tourism

Textile

Agro-based industry

The Government of Rajasthan is promoting


development of several SEZs across the state for
sectors such as gems and jewellery, handicrafts, IT,
electronics and textiles.

Gems and jewellery

Marble

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STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


Rajasthan

November 2010

Wheat, rapeseed, mustard and soybean are the key agricultural


products

In 2008-09, the total production of the top eight


crops of the state was over 12.0 million tonnes.

Crop

Wheat is the major crop of Rajasthan, with an


annual production of 5.8 million tonnes. It is
followed by rapeseed and mustard (2.8 million
tonnes) and soy bean (1.0 million tonnes).
The other key crops of the state are cotton, guar
seed, sugarcane, potatoes and rice.
In 2007-08, Rajasthan was among Indias three
largest producers of rapeseed and mustard,
soybean and coarse cereal.

Wheat*

5,827 .0

Rapeseed and mustard*

2,754 .0

Soybean*

1,034.0

Cotton*

920.0

Guar seed*

750.0

Sugarcane

414.0

Potatoes

92.4

Rice*

36 .0

Onions

23.5

Arhar*

18.0

Source: CMIE,
*As of 2007-08

19

Annual production in
2008-09
(000 tonnes)

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


Rajasthan

November 2010

Rajasthans exports trends

Rajasthans exports increased at a CAGR of


about 19.5 per cent between 2001-02 and
2008-2009.

Annual exports growth trends (%)


2008-09E

-25.1

2007-08

-19.2

2006-07

The states major exports include textiles,


handloom, handicrafts, gems and jewellery,
minerals and auto components.

141.0
33.5

2005-06

15.9

2004-05
2003-04

23.0
39.5

2002-03

In order to boost exports from Rajasthan, the


State Government is laying emphasis on
developing export promotion industrial parks
(EPIP).

2001-02

7.1
16.2

2000-01

-50.0

E: Estimated

Expocity Jaipur, which serves as an


international habitat and convention centre, has
been developed by Jaipur Trade Expo Centre
Private Limited. It is spread over an area of
26,400 sq m and houses multi-utility homes,
state-of-the-art business centres, entertainment
zones, etc.

Source: Capital Markets

20

0.0

50.0

100.0

150.0

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


Rajasthan

November 2010

Investments and FDI inflows

According to the Reserve Bank of India, FDI


inflows from April 2000 to May 2010
amounted to US$ 470 million.

Break up of investments by sector


3.3% 1.8%

Electricity
Construction

4.5%
5.1%

As of March 2010, outstanding investment


in the state was US$ 53.6 billion.

Machinery
33.3%
Services

13.6%

Electricity accounted for over 33 per cent


of the states total outstanding investment
followed by construction.

Mining

18.7%

Non-metallic
mineral products
Chemicals
19.8%
Others

Others include chemicals, metals & metal products, food &


beverages, textiles and irrigation
Source: CMIE, as of March 2010

21

RAJASTHAN

November 2010

Contents
Advantage Rajasthan
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Rajasthan

22

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Roads (1/2)

As of March 2010, Rajasthan had 5,585 km of


National Highways, 11,758 km of State Highways
and 7,673 km of major district roads.

Road type

The road density in the state has increased from


54.6 km per 100 sq. km in 2008-09 to 54.9 km per
100 sq. km in 2009-2010.
Under various schemes such as the Missing Link
project and the Central Road Fund, new roads are
being constructed to link all villages in the state.

23

Road length (km)

National Highways

5,585

State Highways

11,758

District roads

7,673

Source: Ministry of Road Transport & Highways, 200809, Economic Review of Rajasthan, 2009-2010

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Roads (2/2)

In 2009-2010, 1,300 villages were connected


under the Pradhan Mantri Gram Sarak Yojana
(PMGSY).

The Rajasthan Mega Highways Project for


improvement and maintenance of 1,053 km of
road is underway with an investment of US$ 326
million.

As of March 2010, about US$ 316.9 million had


been spent and 1,045.7 km of road had been
constructed.This project is being implemented by
Road Infrastructure Development Company of
Rajasthan (RIDCOR).

Source: Maps of India

24

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Railways

As of March 2008, Rajasthan had a total railway


network spanning 5,683 km, of which 3,885.4 km
(68.3 per cent) was covered by broad gauge.

The railway route length per 1,000 sq. km of


geographical area was 16.6 km, as of March
2008.

Important routes in the state are JodhpurMarwar, Jodhpur-Jaisalmer, Lalgarh-Kolayat and


Lalgarh-Merta Road station.

The Indian Railways also runs famous luxury


tourist trains Palace on Wheels and Heritage
on Wheels that connect some of the
important tourist destinations of Rajasthan with
Delhi and Agra (in Uttar Pradesh).
Source: Maps of India

25

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Airports

The state has a fully operational


international airport at Jaipur, with flights to
Dubai, Sharjah, Bangkok and Singapore.

Domestic airports are located at Jodhpur,


Udaipur, Jaisalmer, Bikaner and Kota with
regular flights from New Delhi, Mumbai,
Kolkata, Hyderabad, Bangalore and
Ahmedabad.

An air-cargo complex at Jaipur, and inland


container depots (ICD) at Jaipur, Jodhpur,
Bhilwara and Bhiwadi facilitate trade within
and outside India.

International airport
Domestic airport

26

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Telecom

Telecom infrastructure (2010)

As of June 2010, Rajasthan had 25.5 million


GSM subscribers.

GSM cellular subscribers: 25,487,398


Internet/broadband subscribers: 195,118^

According to estimates by the Telecom


Regulatory Authority of India, there were 33.7
million wireless subscribers and 1.5 million
wire-line subscribers in Rajasthan, as of March
2010.

Post offices: 10,316^


Telephone exchanges: 2,334^
Customer service centres: 284^
Wireless subscribers: 33,740,879
Wireline subscribers: 1,525,214

The state had 195,118 Internet/broadband


subscribers in 2009.

Sources: Economic Review of Rajasthan 2009-2010, Cellular


Operators Association of India, Telecom Regulatory Authority
of India

As of 2009, the state has about 10,316 post


offices and 2,334 telephone exchanges with
284 customer service centres.

^As of 2009

Major telecom operators in Rajasthan

27

Bharat Sanchar Nigam Limited (BSNL)

Bharti Airtel

Tata Teleservices

Reliance Communications

Vodafone Essar

Etisalat DB Telecom

IDEA Cellular Services

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Power (1/2)

As of March 2010, Rajasthan had a total installed


power generation capacity of 7,768.5 MW
comprising 4,827.0 MW (62.0 per cent) under
state utilities, 1,910.6 (24.7per cent) under
central and 1,030.9 MW (13.3 per cent) under
the private sector.

Installed power capacity (MW)


9,000.0
8,000.0

7,768.5

7,607.1

7,000.0
6,000.0

5,967.9

6,242.9

2006-07

2007-08

6,426.2

5,000.0
4,000.0

The capacity owned by the state utilities


comprised about 64 per cent of coal-based
power plants, 11 per cent of gas-based power
plants and 25 per cent of hydro-power plants.

3,000.0
2,000.0
1,000.0
2005-06

The private sector controlled capacity is based


on renewable energy sources, which are
regulated by the Ministry of New and Renewable
Energy.

Source: Central Electricity Authority

Renewable energy sources such as the wind


power and the biomass are being actively
promoted by the State Government.

28

2008-09

2009-10

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Power (2/2)

Raj West Power Limited, a wholly-owned subsidiary of JSW Energy Limited, is setting up a 1,080 MW
(eight units of 135 MW each) lignite-based pit head power plant in the Barmer district. The estimated
project cost is US$ 1.1 billion.

As of March 31, 2010 38,336 villages have been electrified and about 950,000 wells have been energised
under the Rural Electrification Programme.

The Rajasthan State Electricity Board, formed in 1957, was restructured in 2000 to form the following
companies:
Segment

Name of company

Power generation

Rajasthan Rajya Vidyut Utpadan Nigam Limited

Power
transmission

Rajasthan Rajya Vidyut Prasaran Nigam Limited

Power distribution

Jaipur Vidyut Vitaran Nigam Limited


Ajmer Vidyut Vitaran Nigam Limited
Jodhpur Vidyut Vitaran Nigam Limited

29

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Urban infrastructure

Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 14 projects costing US$ 280.4
million have been sanctioned for the cities of Jaipur, Ajmer and Pushkar.

The projects have been sanctioned for completion between 2007-08 and 2009-2010.The target areas of
development are solid waste management, storm water drainage, water supply improvement, and bus
rapid transport system.

In addition, Rajasthan Urban Infrastructure Development Project (RUIDP) has been sanctioned by the
Government of Rajasthan with loan assistance from the Asian Development Bank (ADB). The towns
covered under the project are Ajmer, Bikaner, Jaipur, Jodhpur, Kota and Udaipur. The key areas of
development under this project are water supply, sewerage, drainage, roads and solid-waste management.
Sources: JNNURM, Ministry of Urban Development, http://www.ruidp.gov.in

30

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Key public private partnership projects


Project name

Sector

PPP type

Project cost
(US$ million)

Stage

Gurgaon-Kotputli-Jaipur road

Roads

BOT-Toll

363.9

Construction

Mahapura (near Jaipur)-Kishangarh road

Roads

BOT-Toll

140.0

In operation

Deoli-Kota road

Roads

BOT-Toll

131.8

Construction

Palanpur-Swaroopganj road

Roads

BOT-Annuity

108.2

Construction

Mahua-Jaipur road

Roads

BOT-Toll

105.0

Construction

Urban development

77.8

Under bidding

Roads

BOT-Toll

54.3

Construction

Reuse of recycled-water-tertiary- treatment


Urban development
water plant

BOOT

43.5

Under bidding

Jalmahel tourism project

Tourism

BOOT

43.4

Construction

Roads

BOT-Toll

42.3

Construction

Narmada road
Bharatpur-Mahua road

Agra-Bharatpur (NH-11) road

Source: www.pppindiadatabase.com
BOT: Build-operate-transfer, BOOT: Build-own-operate-transfer, EOI: Expression of interest

31

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Education sector

The state has a literacy rate of 60.4 per cent


according to Census 2001; the male literacy rate
was 75.7 per cent and the female literacy rate was
43.9 per cent.
The states school infrastructure consists of 57,369
lower primary, 54,151 higher primary and 14,100
high schools.
Rajasthan has made significant progress in the field
of higher education from 2007-08 onwards. There
are 1,050 colleges in the state, including 80
engineering colleges, nine medical colleges and 12
dental colleges.
As of 2009-2010, there are 134 industrial training
institutes (ITIs) (including eight for women) with
20,036 seats in the public sector and 712 ITIs with
80,792 seats in the private sector; they provide
vocational training.
There are 26 government polytechnic colleges
including seven women polytechnic colleges, with a
capacity of 4,540 students.
32

Rajasthans primary education statistics


Schools (No)

Lower primary^: 57,369


Higher primary*: 54,151
High schools^: 14,100

Pupil-teacher ratio^

28:1

Net-enrolment ratio in
primary schools^

99.5

Source: Economic Review of Rajasthan, 2009-2010; Department of


Education and School Literacy Flash Statistics, 2008-09
^As of 2008-09
*As of 2009-2010

Government medical institutes in Rajasthan

Jawaharlal Nehru Medical College, Ajmer

R N T Medical College,Udaipur

Sardar Patel Medical College, Bikaner

SMS Medical College, Jaipur

Geetanjali Medical College and Hospital, Udaipur

Jhalawar Medical College, Jhalawar

Government Medical College, Kota

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Health infrastructure

Rajasthan has a three-tier health infrastructure


comprising primary health centres, health units,
community health centres and sub-centres.

Health indicators as of 2008

A number of initiatives such as the Chief


Ministers Jeevan Raksha Scheme and the World
Bank assisted Rajasthan Health System
Development Project have been taken up to
improve the healthcare facilities of the state.

Population served per medical


institution^

4,369

Population served per hospital bed^

1,372

Birth rate*

27.5

Death rate*

6.8

Infant mortality rate**

63

Life expectancy at birth (years)^


Health infrastructure

Government hospitals: 127


Community health centres: 368
Primary health centres: 1,541
Sub-centres: 11,487
Beds in government medical institutions: 43,864

Male

62.2

Female

62.8

Sources: Ministry of Health and Family Welfare, Sample Registration


System, 2008, Economic Survey 2009-2010
^As of 2006-07
*Per thousand persons
**Per thousand live births

Source: Economic Review of Rajasthan, 2009-2010

33

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Cultural infrastructure

Cricket, polo and aero-sports such as parasailing,


paragliding are the popular sports in Rajasthan.

Jawahar Kala Kendra, Jaipur

The state has various district associations


operating under the purview of the Rajasthan
Cricket Association.
Most important stadiums of the state include
Sawai Mansingh Stadium, Chaugan Stadium, Pratap
Stadium, Mansarovar Stadium (Jaipur).

Golf is another popular sport in the state; water


sports are an upcoming area.

In addition, Rajasthan offers various adventure


activities including camel safari, horse safari, jeep
safari and elephant safaris.

Key cultural centres in Rajasthan include Jawahar


Kala Kendra and Radha Krishan Cultural and
Convention Center in Jaipur, Bharatiya Lok Kala
Mandal and Meera Kala Mandir in Udaipur, and
Desert Cultural Centre in Jaisalmer.
34

House of museums: Displays ethnic art pieces emitting


Rajasthani folk culture.

House of theaters: Plays with high literary value are


staged here.

Library: Has books and magazines, along with a record


of the forthcoming and past cultural events and
exhibitions.

Arts gallery: Displays arts and crafts created by well


known artists.

Studio: Exhibits paintings and sculptures by well known


artists.

Hostel: Residential facilities

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Industrial infrastructure(1/2)
Infrastructure
Theme parks

Export promotion
industrial parks
(EPIP)

SEZs

SEZ for IT
Inland Container
Depot (ICD)
Spices park

Primary industry

Details

Multi-industry

RIICO is developing theme parks with a special set of infrastructure and facilities
for establishing industries in line with the designated theme. It has established a
satellite earth station in the Sitapura IT park of Jaipur along with the Software
Technology Parks of India (STPI).

Multi-product

EPIPs have been set up at Sitapura (Jaipur), Neemrana (Alwar) and Boranada
(Jodhpur). The EPIP in Jaipur is among the largest export parks in Northern India.
The units operating here have export orders accounting for, at least, 33 per cent
of their total turnover.

Multi-product

The state is developing SEZs for industrial growth; as of July 2010, formal approval
had been given to eight SEZs, in-principle approval had been given to 11 SEZs and
there were seven notified SEZs. A multi-product SEZ is being developed by
Mahindra World City (Jaipur) Limited, a joint venture of Mahindra Gesco Limited
and RIICO Limited. This public private partnership initiative envisages an
investment of about US$ 241.1 million.

IT

A state-of-the-art special economic zone has been developed by Mahindra and


Mahindra with an investment of US$ 244 million. It has attracted many domestic
investors such as Infosys and Wipro as well as substantial investment from foreign
investors.

Logistics

For ease of movement of cargo, ICDs have been set up at Jaipur, Jodhpur, Bhiwadi
and Bhilwara.

Food processing

A spices park is proposed to be set up at Ramganj Mandi for processing, packaging


and export of spices (especially coriander) from Rajasthan. The park will be set up
in an area of 30 acres at a total cost of around US$ 3 million.

35

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Industrial infrastructure(2/2)
Infrastructure
Footwear Design
and Development
Institute (FDDI)

Primary industry
Footwear

Details
A FDDI is proposed to be set up at Jodhpur at an estimated cost of around US$
22 million. This Institute will provide specialised training in footwear technology
and design.

Skill development
centre

A skill development centre will be set up by the Confederation of Indian


Industry(CII) in conjunction with the State Government to provide skills training
for the unemployed youth of Rajasthan. The location will be decided by the State
Government in conjunction with CII. Alwar and Jaipur are two of the locations
being considered.

Industrial
infrastructure upgradation centre

An industrial infrastructure up-gradation centre will be set up, possibly along the
Delhi-Mumbai Industrial Corridor (DMIC). A detailed project report and the
exact location is being finalised by the State Government.

36

INFRASTRUCTURE STATUS
Rajasthan

November 2010

SEZs in Rajasthan (1/2)


Operational SEZs
Company name or developer

Location

Primary industry

Jaipur SEZ

Jaipur

Gems and jewellery

Jodhpur SEZ

Jodhpur

Handicrafts

Mahindra Worldcity (Jaipur) Limited

Kalwara village, Jaipur

IT/ITeS

Notified SEZs
Company name or developer

Location

Primary industry

Mahindra Gesco

Jaipur

IT/ITeS

Somani Worsted Limited

Khushkera Industrial Area,


Bhiwadi

Electronics hardware and software/ ITeS

Mansarovar Industrial
Development Corporation

Jodhpur

Handicraft

Vaitka Jaipur SEZ

Jaipur-Ajmer expressway

IT/ITeS

RNB Infrastrucure Private Limited

Bikaner

Textile (in-principle approval granted for


woollen sector)

Mahindra Worldcity (Jaipur) Limited Jaipur

Light engineering

Mahindra Worldcity (Jaipur) Limited Jaipur

Handicrafts

Source: sezindia.nic.in

37

INFRASTRUCTURE STATUS
Rajasthan

November 2010

SEZs in Rajasthan (2/2)


SEZ with formal approvals
Company name

Location

Primary industry

GENPACT

Jaipur

IT/ITeS

SEZ with valid in-principal approvals


Company name or developer

Location

Primary industry

Rockman Projects Limited

National Highway (NH)-8 Jaipur

Gems and jewellery

Omaxe Limited

Alwar district

Multi-product

Ansal Properties and Infrastructure Limited Jaipur district, village Sangtera, Kotputli tehsil

Multi-product

Parsvnath Developers Limited

Jaipur-Ajmer road, Jaipur

Multi-product

Adani Exports Limited

Alwar district

Multi-services

Suncity Rajasthan SEZ Developer Pvt. Ltd.

Neemrana, district Alwar

Multi-product

SRM Infrastructure Private Limited

Alwar

Multi-services

Society for Innovative Education and


Development ('EMPI' Vittal Centre
INNOPOLIS)

Neemrana, district Alwar

Building materials

DLF Limited

Near Bhiwadi, Alwar district

Gems and jewellery

P S Jaipur SEZ Developers Pvt. Ltd.

Bhanpur Kala, Delhi-Jaipur road (on NH-8)

Multi-product

Arihant Infratech (India) Pvt. Ltd.

Udaipur district

Multi-product

Source: sezindia.nic.in

38

INFRASTRUCTURE STATUS
Rajasthan

November 2010

SEZs and industrial clusters (1/2)


Operational and notified SEZs
RNB Infrastructure

Jaipur SEZ (Gems and


jewellery)
Mahindra Worldcity
Limited (IT/ITeS)

Jodhpur SEZ
(Handicrafts)

Vaitka Jaipur SEZ

Mahindra World city


Limited (Handicrafts
and light engineering)
Mansarovar Industrial
Development
Corporation
Index
Operational SEZs
Notified SEZs

Mahindra Gesco
(Jaipur)
Somani Worsted
Limited

39

INFRASTRUCTURE STATUS
Rajasthan

November 2010

SEZs and industrial clusters (2/2)


Industrial clusters in Rajasthan

Index
Cement grade limestone
Automotive
Tourism
IT and ITeS
Handicraft, gems and jewellery

Chemicals

40

INFRASTRUCTURE STATUS
Rajasthan

November 2010

Infrastructure investments

As of March 2010, over US$ 12.2 billion of


investments have been made towards improving
Rajasthans infrastructure.

Infrastructure type

Investments
(US$ million)

Power*

6,504.3

About 53 per cent of the investments made in


infrastructure have been in the area of power
(both generation and distribution).

Roads

2,087.1

Oil and gas

2,077.8

Airport

1,020.6

Roads, oil and gas are the other key infrastructure


sectors, attracting investments.

Coal and lignite

277.8

Railway

203.5

Total
*Generation and distribution
Source: CMIE, as of March 2010

41

12,171.1

RAJASTHAN

November 2010

Contents
Advantage Rajasthan
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Rajasthan

42

STATE POLICIES AND INCENTIVES


Rajasthan

November 2010

Sector-specific policies (1/12)


The Rajasthan Investment Promotion Scheme, 2010 (RIPS-2010)
Aim: To facilitate investment in establishment of new enterprise(s) and/or investments made by the existing enterprise(s) for
modernisation/expansion/diversification. The scheme is valid until 2018.
Key initiatives:

Subsidises and incentives for new units or those undergoing diversification/expansion, to attract investments.

Simplification of investment planning mechanism for investors by using the single-window mechanism.

Special emphasis to encourage investment in industries such as biotechnology, tourism and education.

Key subsidies:

Maximum 50 per cent subsidy of the total taxes (Value Added Tax or Central State Tax or State Goods Service Tax) whenever
introduced and deposited into the government exchequer. Additional subsidy to the extent of 10 per cent of the said tax which
have become due and have been deposited into the government exchequer will be allowed to women entrepreneur with disability.

Employment generation subsidy for new enterprise and project for common social cause, modernisation/expansion/diversification,
sick industrial enterprise for its revival US$ 210 per employee per year of completed service for general category, US$ 253 per
employee per year of completed service for women with disability. Total amount of subsidy shall not exceed 20 per cent of the
amount of taxes deposited by the enterprise.

43

STATE POLICIES AND INCENTIVES


Rajasthan

November 2010

Sector-specific policies (2/12)


Rajasthan State Environment Policy, 2010
Aim: To conserve and enhance environmental resources, assure environmental sustainability of key economic sectors, improve
environmental governance and build capacity.

Key initiatives:

To ensure availability of water in the state where the supply is lesser than the demand.

To reduce water contamination.

To protect forest areas and biodiversity.

To use renewable energy to attain energy efficiency.

To conserve flora and fauna.

To manage tourist arrivals, tourist destinations and tourist operations as the sustainability of tourism hinges on the quality and
availability of natural resources it is dependant on.

A climate change agenda has been prepared for the state to take forward the provisions of the National Action Plan on Climate
Change.

A State Environment Mission has been formulated to assure implementation of this policy.

44

STATE POLICIES AND INCENTIVES


Rajasthan

November 2010

Sector-specific policies (3/12)


The Rajasthan Micro, Small and Medium Enterprises Development Assistance Scheme, 2008
Aim: To make the states MSMEs globally competitive.
All MSMEs of the state having acknowledgement of entrepreneurs Memorandum-I and II are eligible for the benefit under this
scheme, subject to fulfillment of certain conditions.
Key thrust: To develop and support MSMEs in increasing capacity and quality for supplying to domestic and export markets.
Key incentives:

RIICO to provide land at 50 per cent of the prevailing district level committee (DLC) rates.

The State Government to provide 50 per cent of the capital cost for establishment of common effluent-treatment plants (CETP).

Reimbursement of expenses incurred towards filing, sharing patent, ISO certification.

Establishment of national laboratories by providing land at 50 per cent of DLC rates and part of capital cost.

To get at least 10,000 artisans credit cards issued per year from different banks in the next five years.

RIICO to develop separate areas for MSME with 24-hour uninterrupted power supply and enabling infrastructure.

Encouragement of private sector investment for setting up industrial parks by providing a level playing field vis--vis RIICO.

Exemption from entry tax for inputs (raw material, processing and packaging material, except fuel).

Exemption of 75 per cent from electricity duty to the units located in rural areas.

Khadi and Village Industries Board (KVIB)/ Khadi and Village Industries Commission (KVIC) registered units to continue with preVAT tax structure.

45

STATE POLICIES AND INCENTIVES


Rajasthan

November 2010

Sector-specific policies (4/12)


Ayush Healthcare facilities, 2008
Aim: To promote private investment in healthcare facilities offered by the Indian system of medicine; policy to remain in force until
December 2013.
Key initiatives:

To promote private sector investment in education, research institutes and hospitals in the area of traditional Indian medicine.

To develop super specialty facilities for the Indian system of medicine to ensure delivery of quality health care at reasonable costs.

To promote public-private participation in the health sector.

To develop standards for infrastructure and operation and create a regulatory body with supportive role.

Key incentives:

Exemption from duty on captive power generation as per RIPS-2010 for a period of seven years; 50 per cent exemption from
stamp duty and land conversion charges.

Land at concession rates to new institutes, investing a minimum of US$ 1.0 million for colleges, US$ 500,000 for hospital and
specialty centre, US$ 1.0 million for pharmacy and US$ 0.1 million for 50-bed hospitals.

46

STATE POLICIES AND INCENTIVES


Rajasthan

November 2010

Sector-specific policies (5/12)


Tourism Unit Policy, 2007
Aim: This policy enhances the scope of the Hotel Policy, 2006, by including all other categories of hotels (heritage hotels and other
tourism units, e.g., health spas, golf academy and golf course) under its purview.
Key incentives:

A land bank with information of all land available will be made available online; minimum and maximum areas have been prescribed
for land to be auctioned from the land bank.

Minimum special reserve price (MSP) for five-star hotels and other tourism units fixed at less than 50 per cent of the commercial
reserve price. For the budget, three-star and four-star units, MSP ranges from 10 per cent to 45 per cent.

Under Rule-7 of the Rajasthan Land Revenue (conversion of agricultural land for non-agricultural purpose in rural areas) Rules
2007, a provision has been added for exempting payment of conversion charges for investors/developers of hotels or any other
tourism unit on the land.

A provision has been added to the Rajasthan Municipal Corporation (land utilisation conversion) Rules 2000 according to which
heritage property owners would not have to pay 40 per cent of residential reserve price for conversion of the property into a
heritage hotel provided that the property has a minimum of 10 rooms.

The floor area ratio (FAR) of existing hotels increased from 1.7 to two, to allow construction of an additional floor.

All concessions available in the RIPS-2010, shall also be available to all tourism units.

47

STATE POLICIES AND INCENTIVES


Rajasthan

November 2010

Sector-specific policies (6/12)


IT and ITeS Policy, 2007
Aim: To create and expand economic opportunities in the knowledge economy, attracting investments to the state and enhancing
employment opportunities.
Key initiatives:

Strengthening information and communication technology (ICT) infrastructure for e-governance.

Developing e-governance framework for charting strategic growth plans and formulating appropriate policy measures.

Promoting public private partnerships in e-governance.

Implementing structured business process re-engineering (BPR) in all the key departments.

Formulating proper framework and guidelines for maintenance, accreditation and updating of various state department websites.

Promoting economic development of the state through investments in IT and ITeS sector.

Making IT available for the masses by promoting computer education, creating talent pool for the ICT industry, generating
employment, taking it to rural areas and providing adequate incentives.

The local IT industry shall be encouraged to develop and offer the necessary IT products and services relevant to the tourism
industry.

Electronic tourism kiosks to be set up at important locations for the benefit of tourists coming to the state.

48

STATE POLICIES AND INCENTIVES


Rajasthan

November 2010

Sector-specific policies (7/12)


IT and ITeS Policy 2007 (continued)
Key incentives:

Land and office infrastructure incentives:

Facilitation for the creation of infrastructure such as high-quality office space serviced with all basic amenities of high-speed
telecommunication links, uninterrupted power supply and central air-conditioning.

Assistance in procuring land and change in land use as in master plan, wherever feasible, to the private IT park and IT unit
developers.

50 per cent exemption from stamp duty to eligible IT/ITeS companies as per provisions of Rajasthan Investment Promotion
Scheme (RIPS-2010) or as amended from time-to-time.

Various exemptions related to labour laws including:

Permission to work 24 hours a day, seven days a week.

Closing an establishment and granting of a weekly holiday as per company requirements, provided that every individual has
at least one day off every week and a compulsory day off in lieu of working on bank holidays.

Flexi-time operations since working hours could be decided as per company needs and three shift operation is allowed.

Permission to engage female employees between 8 p.m. and 6 a.m., provided special arrangement is made for ensuring
their security.

50 per cent exemption from the payment of electricity duty for seven years, as per provisions under RIPS-2010 or as amended
from time-to-time, for new IT units.

Electricity tariff for IT and ITeS units as per low-tension industry category.

49

STATE POLICIES AND INCENTIVES


Rajasthan

November 2010

Sector-specific policies (8/12)


IT and ITeS Policy 2007 (continued)
Key incentives:
All the fiscal incentives as per the Rajasthan Investment Promotion Policy, 2003 or as amended from time to time; VAT on all
products rationalised to be at par with the minimum floor rate of 4 per cent.

Special package of incentives to the micro, small and medium enterprises (MSMEs) to promote their growth. Some of the key
incentives are:

Reservation of land for preferred allotment to MSMEs in the IT parks.

Support to NASSCOM, Software Technology Parks of India (STPI) or any such organisation in the creation of a library for
making available information on trends in technology, market intelligence, research reports and analysis, etc., by contributing
US$ 20,000 per annum, for developing the small and medium enterprises sector.

Subsidy up to US$ 50,000, at the rate of US$ 217 per employee, to the first five IT/ITeS companies investing in the state and
directly employing more than 50 employees in IT or 100 employees in ITeS sector; such employment should exist for a period
of at least two years for persons domiciled in Rajasthan.

Incentives linked to mega projects: Projects creating direct employment of more than 500 people in the case of IT industry or
1,000 people in ITeS industries to be defined as mega projects; such projects are entitled to a special package of incentive of
US$ 217 per employee.

50

STATE POLICIES AND INCENTIVES


Rajasthan

November 2010

Sector-specific policies (9/12)


Policy to Promote Private Investment in Healthcare Facilities 2006
Aim: To encourage private investment in healthcare facilities and promote Rajasthan as a destination for medical tourism; policy to
remain in force until December 2010.
Key initiatives:

To promote private sector investment in medical and healthcare institutions, medical and dental colleges and support units such as
diagnostic centres, blood banks and paramedical training institutes.

To develop complementary and alternative medicine centres.

To develop super specialty healthcare institutions.

To ensure delivery of quality healthcare at reasonable costs.

To promote development of centres of excellence for medical care.

To develop standards for infrastructure and operations.

To create a regulatory body with supportive role.

Key incentives:

Rebate related to land allotment (ranging up to 75 per cent); it is linked to size of investment, geographical location and hospital in
areas of tourist importance.

50 per cent exemption from the payment of electricity duty for seven years

50 per cent exemption from the payment of stamp duty and land conversion rate.

51

STATE POLICIES AND INCENTIVES


Rajasthan

November 2010

Sector-specific policies (10/12)


Policy for Promoting Generation of Electricity through Non-Conventional Energy Sources, 2004
Aim: To encourage investment in non-conventional sources for generation of electricity.
Key incentives:

50 per cent exemption from electricity duty for seven years.

50 per cent exemption from stamp duty.

50 per cent exemption from conversion charge.

Allotment of land on 10 per cent of district-level committee (DLC) rate.

Exemption from payment of entry tax.

Exemption from merit order dispatch regulations.

Wheeling and banking facilities for power generated.

Interest subsidy and wage/employment subsidy on new investments.

52

STATE POLICIES AND INCENTIVES


Rajasthan

November 2010

Sector-specific policies (11/12)


Biotech Scheme, 2004
Aim: To facilitate the growth of biotech industries and development of clean bio-technologies.
Key thrust areas:

Positioning the state as an attractive destination for development and growth of biotechnology industries.

Creating and continuously upgrading biotechnology infrastructure in the state through government and/or public private
partnerships.

Creating and developing human resources in biotechnology.

Key incentives:

Land allotment for setting up of various biotechnology and bio-informatics industries, including projects covered under modern
biotechnology, is made at the rate of development charges prevailing in the area.

The land rebate, by way of reimbursement, is allowed after the required minimum fixed investment has actually been made on the
allotted plot within the period stipulated for investment in the package.

53

STATE POLICIES AND INCENTIVES


Rajasthan

November 2010

Sector-specific policies (12/12)


Tourism Policy, 2001
Aim: To ensure optimum utilisation of rich tourism resources of the state to generate employment, especially, in the rural areas.
Key initiatives:

Optimum utilisation of rich tourist resources of the state in order to attract maximum number of domestic and international
tourists.

To facilitate the growth of tourism in the state and to further involve the private sector in the development of tourism in
Rajasthan.

To make tourism a people's industry in the state.

Preservation of rich natural habitat and bio-diversity, historical architectural and cultural heritage of Rajasthan; special emphasis
on conservation of historical monuments in Rajasthan.

Increase employment opportunities, especially, for unemployed rural youth.

54

RAJASTHAN

November 2010

Contents
Advantage Rajasthan
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Rajasthan
Company logos cited in this section are registered trademarks of the respective companies

55

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Cement

Rajasthan has huge reserves of cement-grade and


steel-melting-shop (SMS) grade limestone. SMS
grade limestone of the Jaisalmer district is supplied
to various steel plants in the country.
As of 2009-2010, 14 major cement plants and two
medium cement plants are in operation with a
total installed capacity of about 20.3 million tonnes
per annum (MTPA).

56

Key players

ACC

Ambuja Cement Limited

Birla Corporation Limited

Mangalam Cement Limited

Grasim Industries Limited

Shree Cement Limited

Binani Cement Limited

Laxmi Engineers Limited

JK Lakshmi Cement Limited

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Cement company profiles (1/2)


ACC Limited

Ambuja
Cements Limited

Birla Corporation
Limited

Mangalam Cement Limited

Shree Cement

ACC is the largest cement producer in India; its plant at Bundi, Rajasthan, has a production
capacity of 1.5 MTPA.

The company is also the largest manufacturer of ready-mix concrete in India.

Ambuja Cements Limited has cement plants in Rajasthan, Maharashtra, Gujarat, Himachal
Pradesh, Punjab, Chhattisgarh and West Bengal.

The total cement capacity of the company is 18.5 MTPA.

The production facility in Rajasthan has a capacity of 2 MTPA.

Birla Corporation Limited is the flagship company of the M.P. Birla group.

The company owns seven cement plants, located in West Bengal, Madhya Pradesh, Rajasthan and
Uttar Pradesh, with a total annual manufacturing capacity of 5.8 MTPA.

The company is planning a 1.2 million tonne expansion at its Chanderia plant in Rajasthan.

Mangalam Cement Limited is principally engaged in the development, manufacture and


distribution of portland cement and clinker in India.

The company has limestone deposits at Morak, ideal for the manufacturing portland cement.

It has a plant in Kota.

The companys sister firm Mangalam Timber is getting merged with itself.

Shree Cement manufactures its products under the Bangur Cement brand name.

The companys manufacturing facilities are located at Beawar, 185 km from Jaipur.

The companys grinding unit is located at Khush Khera (Alwar).

Besides, the company has a a wide network of 28 sales offices, 1,193 dealers and 4,000 retailers.

57

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Cement company profiles (2/2)


Grasim Industries
Limited

Binani Cement
Limited

Laxmi Engineers
Works

JK Lakshmi Cement
Limited

Grasim Industries Limited is a flagship company of the Aditya Birla Group.

Grasim, along with its subsidiary UltraTech Cement had a capacity of 48.8 MTPA as of March 2010; it
is a leading cement player in India; has 1.5 MTPA cement unit at Shambhupura in Rajasthan.

Grasim is setting up a 4.5 MTPA greenfield plant at Kotputli and another 4.4 MTPA plant at
Shambhupura, both in Rajasthan.

Grasim Industries Limited has hived off its cement business as Samruddhi Cement for a merger with
another group company, UltraTech Cement.

Binani Cement Limited (BCL) is a subsidiary of Binani Industries Limited (BIL).

The companys manufacturing plant is located at Binanigarm, Sirohi, Rajasthan.

The Binanigram facility has an upgraded capacity of 6 MTPA.

Laxmi Engineers Works s a cement manufacturer with headquarters in Rajasthan; the company began
operations in 1991.

The company's mini-cement plant has the production capacity of 50 tonnes per day.

The group companies manufacture cut stones and marbles, polishing machines and tiles for
construction.

JK Lakshmi Cement Limited has a state-of-the-art plant at Jaykaypuram, Sirohi, Rajasthan.

With the capacity expansion and further commissioning of a split-location grinding unit in Gujarat, the
combined capacity of the company is 4.75 MTPA.

JK Lakshmi Cement is the first cement producer of Northern India to be awarded an ISO 9002 and be
accredited by National Accreditation Board for Testing and Calibrating Laboratories (NABL),
Department of Science and Technology, Government of India, for its lab quality management systems.

58

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Mining and mineral processing industry (1/2)

Rajasthan is among the largest mineral producing


states in India. Around 79 varieties of minerals
are available in the state and 58 minerals are
produced on a commercial scale. Important
minerals are silver, phosphate fluoride, rock
phosphate, copper, zinc, gypsum, clay, granite,
marble, sandstone, dolomite, calcite, emeralds
and garnets.

Prospective locations for metals

The state has about 210 million tonnes of


identified reserves of lead-zinc ore with 1.5 per
cent lead and zinc, and 639 million tonnes of
copper ore reserves containing 0.8 to 1.2 per
cent copper.

59

Copper

Udaipur, Sirohi, Raisamand,


Alwar, Jhunjhunu

Lead, zinc, copper

Banswara

Gold

Banswara

Gold, silver

Banswara

Copper, gold, platinum

Ajmer

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Mining and mineral processing industry (2/2)

Base metals and noble metals: Rajasthan has immense


potential for mining base metals and noble metals in a belt
that extends over an area of about 58,000 sq km; it covers
Alwar in the North to Banswara and Dungarpur in the
South and passes through the districts of Jhunjhunu, Jaipur,
Ajmer, Bhilwara, Rajsamand, Sirohi and Udaipur.
Dimensional stones: The state has substantial reserves of
different varieties of dimensional stones such as marble,
granite, sandstone and slate with tremendous potential for
exports forward linkages with the construction industry.
Lignite: Rajasthan has more than 4,000 million tonnes of
lignite reserves in the districts of Barmer, Bikaner and
Nagaur. Lignite is being produced in Barmer and Matasukh
area of Nagaur. In recent years, some lignite blocks in three
districts have been allotted for setting up thermal power
plants.
Ceramics: The availability of clay and feldspar in Rajasthan
makes it an excellent location for ceramic-related industry
(e.g., white-ware, floorings and bone-china).

60

Key players in mining industry

Hindustan Zinc Limited

Hindustan Copper Limited

Key players in ceramic industry

Kajaria Ceramics Limited


Liberty Whiteware Limited
Jaipur Ceramics Private Limited

Key players in marble industry

Elegant Marble and Granite Inc


Maadhav Marbles and Granites Limited

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Mining company profiles


Hindustan Zinc
Limited (HZL)

Hindustan Copper
Limited

Rajasthan State Mines


and Minerals Limited
(RSMML)

HZL is a part of the Vedanta Resources Group and has four mines in Rajasthan.

Rampura Agucha mine is a zinc mine with a production capacity of 6 MTPA. In 2009-2010, Rampura
Agucha produced 612.9 Kilo Tonnes (KT) of contained zinc and 55.10 KT of contained lead. Rampura
Agucha is also one of the lowest cost zinc producer globally.

Sindesar Khurd mine has reserves and resources base of over 60 million tonnes. Sindesar Khurd has
annual ore production capacity of 0.5 MTPA and achieved a production level of 19.8 KT of contained
zinc and 8.0 KT of contained lead in 2009-2010. The company plans to increase the current ore
production capacity of Sindesar Khurd from 0.5 MTPA to 1.50 MTPA.

Rajpura Dariba mine has annual ore production capacity of 0.9 million tonnes and achieved a
production level of 21.9 KT of contained zinc and 5.4 KT of contained lead in 2009-2010. Bulk
concentrate production at Rajpura Dariba has resulted in significant recovery improvements in zinc,
lead and silver.

Hindustan Copper Limited is a public sector undertaking under the administrative control of the
Ministry of Mines.

It is a vertically-integrated copper producing company with facilities of mining, beneficiation, smelting,


refining and casting of refined copper metal into downstream-saleable products.

HCL has four operating units of mines and plants, one of which is the Khetri Copper Complex
(KCC) at Khetrinagar in Rajasthan.

RSMML is a public sector enterprise of the Government of Rajasthan, primarily, engaged in mining and
marketing of industrial minerals.

The company has various strategic business units (SBUs) in Rajasthan; the rock phosphate SBU is
located at Udaipur, gypsum SBU at Bikaner, limestone SBU at Jodhpur and lignite SBU at Jaipur.

Going forward, RSMML is targeting cost effective technological innovations in mining and diversifying
into mineral-based downstream projects.

61

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Ceramic company profiles


Kajaria Ceramics Limited

Liberty Whiteware
Limited

Jaipur Ceramics Private


Limited

Kajaria Ceramics is the largest manufacturer of ceramic tiles in India. The company has two
manufacturing plants, with a total annual capacity of 21 million sq m.

The company exports tiles to more than 20 countries around the globe.

Kajaria Ceramics has a manufacturing plant at Gailpur, Rajasthan, with an annual capacity of 14.1
million sq m.

Kajaria has several certifications, including ISO 9001 (for quality management), ISO 14001 (for
environment management), OHSAS 18001 (for safety and health management) and SA-8000 (for
commitment to society).

Liberty Whiteware Limited has a sanitary-ware unit, located at Neemrana in Rajasthan.

The company has an annual production capacity of 500,000 pieces per annum.

Jaipur Ceramics has a ceramics plant on the outskirts of Jaipur, with a bone china capacity of 1,500
tonnes per annum.

The company has a workforce of about 700 people, including highly-skilled and semi-skilled
employees.

It also has an in-house facility for making kiln furniture and can produce tiles and pillars for captive
use; the capacity is about 18 tonnes per month.

62

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Marble company profiles


Elegant Marble and
Granite Inc.

Maadhav Marbles
and Granites
Limited

Elegant Marble and Granite Inc., markets and processes marble and granite and offers over 84 colours
in the Indian market.

The companys total installed capacity for processing marble and granite is 2.5 million sq ft.

It also imports marble from Italy, France, Norway, Spain, Greece and Nepal.

Maadhav Marbles and Granites Limited exports its products to over 20 countries including the US,
Germany, Holland, Singapore and Australia.

It has an installed capacity of 751,338 sq m per annum for processing granite tiles.

The company has acquired two wind-turbine generators (each of 1.25 MW) and has diversified into
power generation.

63

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Automotive

The Alwar and Jaipur districts are close to major


auto production hubs of the country such as
Noida (Uttar Pradesh), Gurgaon and Dharuhera
(Haryana), offering excellent advantage for setting
up of auto and auto ancillary units.
Nearly 100 units are currently functional in the
Bhiwadi region of Alwar.
A special auto and engineering zone has also been
developed in the Pathredi Industrial Area and
another special zone is being planned in Bhiwadi.

64

Key players

Amtek Auto Limited

Ashok Leyland

TAFE

Hi-Tech Gears Limited

National Engineering Industries (NBC)

Autolite India Limited

Honda Siel Cars India Limited

Caparo Fasteners

Federal Mogul Goetze

Ocap Chassis Parts Pvt Limited

MICO

Continental Engines

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Automotive company profiles (1/4)


Amtek Auto Limited

Ashok Leyland

Tractors and Farm


Equipment Limited
(TAFE)

Amtek Auto Limited is a flagship company of the Amtek Group; it is a leading Indian supplier of auto
components with operations in forgings, machining and sub-assemblies.

The companys plants are located at Alwar and Bhiwadi.

It supplies over 300 varieties of components and assemblies to leading domestic and global vehicle
manufacturers.

The companys machining capacity is 40 million parts and its forging capacity is 225,000 tonnes per
annum.

Ashok Leyland is a flagship company of the Hinduja Group; it is a leading manufacturer of commercial
vehicles in India.

The companys manufacturing facilities are located at Alwar (Rajasthan), besides Ennore, Ambattur and
Hosur in Tamil Nadu and Bhandara in Maharashtra.

In July 2007, the company entered into a joint venture with the Alteams Group, Finland, to manufacture
high pressure die-castings and aluminium products, predominantly, for the automotive and
telecommunications sectors.

TAFE is in the tractor manufacturing business; its subsidiary, TAFE Motors and Tractors Limited, has an
engine plant at Alwar and transmissions plant at Parwanoo.

The diesel engine plant at Alwar, Rajasthan, produces a range of air-cooled and water-cooled diesel
engines of up to 80 HP.

65

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Automotive company profiles (2/4)


Hi-Tech Gears Limited

National Engineering
Industries Limited

Autolite India Limited

Hi-Tech Gears Limited was incorporated as a public limited company in 1986; the company has a
plant in Bhiwadi; it has ISO 9002 and QS 2000 certifications.

The company produces precision forging, transmission gears, and shaft and timing gears.

Getrag Hi-Tech Gears India Private Limited, a joint venture of GETRAG Corporation and Hi-Tech
Gears Limited is engaged in production of engine timing gears; the unit employs around 70 people.

National Engineering Industries Limited, Jaipur, was founded in the year 1946 for manufacture of
bearing under the name of National Bearing Company Limited (NBC).

The company has manufacturing facilities at Jaipur and Gunsi (Newai).

It produces ball bearings, steel balls, tapered roller bearings, cylindrical roller bearings and axle boxes
for railway rolling stock.

The company manufactures nearly 3.8 million bearings per month in over 500 different sizes ranging
from 6 mm bore to 1,300 mm outer diameter. The company has facilities to manufacture bearings up
to 2,000 mm outer diameter.

Autolite India Limited was established in 1970, with an objective to design, manufacture and market
automotive lighting products, globally; the current product range includes head lamps, auxiliary
lamps, work lamps, horns, halogen bulbs and incandescent bulbs.

The companys manufacturing plant is located at Jaipur.

It serves as an original equipment manufacturer (OEM) for the domestic, European and Japanese
vehicle manufacturers in India including Eicher, Komatsu and FIAT.

It has ISO 9001: 2000 accreditation.

66

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Automotive company profiles (3/4)


Honda Siel Cars

HSCI was incorporated in December 1995 as a joint venture between Honda Motor Co., Japan and Siel
Limited, a Siddharth Shriram group company; the total manufacturing capacity of the company is
100,000 cars.

In Rajasthan, the company has a plant located at Tapakura. As of 2009, the total investment made by the
company in Rajasthan plant was US$ 130 million; further investment of US$ 86 million is planned, which
will translate in to capacity addition of 60,000 units of cars.

Caparo Fasteners started its Indian operation in 2005 from Chopanki (Rajasthan); it is one of Indias
leading manufacturers of high tensile fasteners.

Caparo Fasteners India supplies fasteners to leading OEMs including Ashok Leyland, Asia Motor Works,
Eicher Motors, Ford, General Motors, HMSI, Tata Motors.

The company has a capacity to produce 26,000 MT of fasteners per annum.

It is backed by complete technical support from the group company, Caparo Atlas Fastenings, UK, a
leading manufacturer of fasteners, catering to the European automobile industry, for the last 100 years.

Federal-Mogul Goetze (India) Limited was established in 1954 as a joint venture between Escorts and
Goetze-Werke of Germany.

It is the largest manufacturer of pistons and piston rings in India.

The company has production facilities at Bhiwadi which is accredited with TS 16949, ISO14001 and
OHSAS 18001.

Ocap, founded in 1975, has operations in Italy in Valperga, Feletto, Busano and Oglianico.

The company started its operations as a spare manufacturer for steering and suspension parts for the
aftermarket. At present, the company is a supplier to automotive, truck and agricultural manufacturers
such as Audi, Bentley, Lamborghini, Maserati and Renault.

OCAP Chassis India is located at RIICO industrial area, Bhiwadi, (Alwar).

India Limited (HSCI)

Caparo Fasteners

Federal-Mogul
Goetze (India)
Limited

Ocap Chassis Parts


Pvt Limited

67

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Automotive company profiles (4/4)


Motor Industries

MICO Inc., is a manufacturer of pumps, which are used in commercial vehicles to follow gas emission
requirements.

The company has a manufacturing plant at Jaipur with a capacity of 10 million units per annum for pumps
that comply with Euro-II and Euro-III norms.

MICO has planned to double the capacity of its Jaipur plant. Post-expansion, these distribution pumps
will be made Euro-IV compliant.

Continental Engines is a part of Bakshi Group, a three decades old Indian multinational company with
interests in auto components, engines and business process outsourcing (BPO) sectors.

It is engaged in the manufacture of automotive components for domestic and global auto majors.

The companys product range includes fully-assembled cylinder heads (multi-cylinder heads and singlecylinder heads), crank cases, compressor mounting brackets, inlet manifolds, clutch housings,
transmission cases, flywheel housings, etc.

Company (MICO),
Inc

Continental Engines

68

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Textiles

Rajasthan has a leading position in the production


of polyester viscose yarn and synthetic suiting
material as well as processing of low-cost, lowweight fabric (at Pali, Balotra, Sanganer and Bagru).

Type of textiles in Rajasthan

Block printing-Sanganer, Jaipur, Bagru

Bandhani-Jodhpur, Pali, Jaipur, Udaipur


and Nathdwara

Jaipur is also a well-known centre for


manufacturing garments, primarily for exports.

Zari/Zardosi

Quilting

Bhilwara has emerged as India's largest


manufacturer of suiting fabrics and yarn.
Key players

Availability of raw material and trained labour has


promoted the growth of textile industry and
drove many textile units to locate in the state.
With a network of backward and forward linkage,
Rajasthans textile industry offers significant
competitive advantage.

69

Rajasthan Spinning and Weaving Mills


Limited

JK Synthetics

Banswara Syntex Limited

Shree Rajasthan Syntex Limited

Shriram Rayons

Bhilwara Spinners Limited

Ginni International Limited

Modern Threads

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Textiles company profiles (1/2)


Rajasthan Spinning
and Weaving Mills
Limited (RSWM)

JK Synthetics

Banwara Syntex
Limited

Shree Rajasthan
Syntex Limited

RSWM produces yarn, fabric, garments and denim; it is one of the largest producers and exporters of
polyester-viscose-blended yarn in the country.

The company operates around 3,60,000 spindles and produces 100,000 MT of yarn per year.

It has plants in Banswara, Mordi, Kharagram and Rishabdev.

JK Synthetics produces a wide range of synthetic fibres including nylon yarn and high-tenacity yarn for
industrial application, e.g., fishing industry, tyre cord, polyester-filament yarn, polyester staple fibre and
tows and acrylic staple fibre.

The plant is located at Kota in Rajasthan.

Banswara Syntex Limited was incorporated in the year 1976; the company manufactures fabric,
readymade garments, made-ups and worsted suiting.

The companys manufacturing facility is located in Banswara; it has a spinning capacity of 133,588 ring
spindles including 14,400 spindles for worsted-yarn spinning and 576 air-jet spindles. It also has 194
shuttles-less looms, 12 air-jet-jacquard looms and six stenters, with a processing capacity of 4 million
meters per month.

The company also has a readymade garment production plant at Daman and Surat (Gujarat), with
installed capacity of 0.23 million pieces of trousers and 10,000 pieces of jackets per month.

Shree Rajasthan Syntex Limited is a manufacturer of synthetic-yarn including acrylic, polyester, viscose
and polypropylene multi-filament yarn.

The plant is located at Udaipur in Rajasthan.

70

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Textiles company profiles (2/2)


Shriram Rayons

Bhilwara Spinners
Limited

Ginni International
Limited

Modern Threads

Shriram Rayons, a part of DCM Shriram Industrial Group, is among the country's major manufacturers
of high-grade rayon tyre cord; it has nylon and rayon conversion facilities catering to the needs of the
domestic and international markets.

The manufacturing plant is located at Kota; the technology partners of the company are Beunit Fibres
Inc, USA and Chemtex Inc, USA.

Bhilwara Spinners Limited, a part of the LNJ Bhilwara Group, is a manufacturer of cotton-synthetic
blended yarns of various counts and blends; the 18,496 spindles manufacturing facility is located at
Bhilwara.

The company also manufactures various value-added products such as polyester/acrylic, mod-acrylic
flame-retardant yarn, sewing thread, slub yarn, viscose-carpet yarn, linen yarn, and products suitable for
other uses including upholstery, tapestry and industrial fabrics.

Ginni International Limited has a unit at the RIICO Industrial Area, Neemrana, Alwar.

Established in 1996, it is a 100 percent export-oriented unit, engaged in weaving, spinning and knitting
activities.

The installed capacity of the plant is around 32,256 spindles; it also has a capacity to produce worldclass quality woven fabrics with 54 picanol air-jet looms; the company has ISO certification since 1997.

It employs around 700 people.

Modern Threads is a unit of Modern Group; it is one of the largest synthetic yarn spinning plants in
India, which a capacity of about 50,000 spindles.

It is engaged in manufacturing and marketing of a wide range of products including grey, dyed and fancy
yarns made of polyester viscose.

In Rajasthan, they are located in village Raila in the Bhilwara district.

71

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

IT sector

Rajasthan has a vast pool of trained professionals.


Moreover, low cost of operations in well developed
cities of the state makes them attractive locations for
IT and ITeS units.
IT parks with special infrastructure have been set up
at Jaipur, Jodhpur, Kota and Alwar.

72

Key players

Infosys

Tech Mahindra

Genpact

Wipro Technologies

Nagarro

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

IT and ITeS company profiles (1/2)


Infosys

Tech Mahindra

Genpact

Infosys was set up in 1981; it is engaged in IT consulting, modular global sourcing, process reengineering, and BPO services; the company has operations in Australia, China and US. It also has
marketing and technological alliances with FileNet, IBM, Intel, Microsoft, Oracle, etc. The company
recorded a turnover of US$ 4.8 billion in 2009-2010.

Infosys BPO, the BPO-services division of Infosys, has opened BPO campuses at the Mahindra
Worldcity, Jaipur, Rajasthan.

The company has also launched various industry-specific programmes in Rajasthan where it collaborates
with universities in the state to improve the BPO-specific skill sets.

Tech Mahindra is a global systems integrator and business transformation consulting firm, focused on
the communications industry.

Tech Mahindra provides a wide variety of services ranging from IT strategy and consulting to system
integration, design, application development, implementation, maintenance and product engineering.
Tech Mahindra has accreditations such as ISO 9001:2000 certification, SEI-CMM level 5 assessments and
is also CMMI level 5 certified for software development processes.

The company has set up two software development centres in Jaipur, Rajasthan.

Formerly known as GE Capital International Services, Genpact was set up in India in 1997.

The company provides a wide range of business process, technology and knowledge services in finance
and accounting, collections and customer relations, insurance, procurement and supply chain, analytics,
software, IT-infrastructure

It recorded a turnover of US$ 1.5 billion in 2010.

The company employs about 43,300 professionals in total and over 3,000 people in the Jaipur facility.

73

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

IT and ITeS company profiles (2/2)


Wipro Technologies

Nagarro

Wipro Technologies was established in 1945; it is engaged in IT services, product engineering,


technology infrastructure services, BPO and other consulting solutions. It also provides services such as
application development, deployment and maintenance, business intelligence and customer relationship
management. Based in Bengaluru, the company has 54 development centres and 30 offices spread
across India, North America, Middle East and Europe.

It recorded a turnover of US$ 6.0 billion in 2009-2010.

Wipro Technologies has set up a campus at the Mahindra World City in Jaipur. The company is
developing its campus in two phases; the first phase spread across 25 acres, with a seating capacity of
1,000 employees is operational.

Nagarro provides outsourced software development services to companies ranging from early stage
start-ups to the global 50 market leaders, helping them achieve their strategic goals.

The company has signed an MoU with the Mahindra World City for developing a five-acre site in the
Mahindra World City SEZ.

74

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Chemicals

The key chemicals produced in Rajasthan include fertilisers, caustic soda and pesticides; the principal
industrial complexes for chemicals are at Jaipur, Kota, Udaipur and Bhilwara.
Chambal Fertilisers and
Chemicals Limited
(CFCL)

P I Industries Limited

DCM Shriram Industries


Limited

CFCL manufactures and distributes urea, agri-inputs, fertilisers, plant protection chemicals, seeds
and biofertilisers.

The company has two nitrogenous fertiliser plants near Kota in Rajasthan with a capacity of over
1.7 MTPA of urea; it is among the largest fertiliser complexes in the private sector in India.

P I Industries mainly produces organo-phosphorous insecticides.

The company has its plant at Udaipur in Rajasthan, producing liquid insecticides, minerals and allied
products, polymers and solid insecticides.

DCM Shriram Industries Limited is a diversified group with operations in sugar, alcohol, organic and
inorganic chemicals, drug intermediates, rayon tyre cord, shipping containers and processed cotton
yarn.

75

BUSINESS OPPORTUNITIES
Rajasthan

November 2010

Steel

Rajasthans steel industry comprises re-rolling and stainless steel units located, mainly, in Jodhpur, Alwar
and Jaipur. Most of the re-rolling units belong to the small scale sector.

Asian Alloys
Limited (AAL)

Kamdhenu Ispat
Limited
PSL Limited

AAL manufactures steel ingots and castings.

Its units are located at Bhiwadi in Rajasthan as well as in Punjab.

The companys products are mainly used in the paper and rubber industries.

Kamdhenu is a manufacturer of international quality steel bars and paints.

The steel-bars unit is located at Bhiwadi; the paint division is in Alwar.

PSL manufactures steel pipes.

The company's products include protective coatings for steel pipes, epoxy coatings for reinforcement
bars, epoxy powder paint and galvalum range of aluminium sacrificial anodes.

It is involved in iron-ore processing.

76

RAJASTHAN

November 2010

Contents
Advantage Rajasthan
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Rajasthan

77

DOING BUSINESS IN RAJASTHAN


Rajasthan

November 2010

Key approvals required (1/2)


Approvals and
clearances required

Respective departments of state


15 days

Industrial licence
Sponsorship for raw-materials and
inputs

Estimated time

Industrial Commissionerate and State


Revenue Department

Land allotment

30 days
30 days at the district-level
60 days for state government approval
30 days for district-level clearance

Incentives

Bureau of Investment Promotion

Sanction of loan

Rajasthan Financial Corporation (RFC)

45 days for state-level clearance


60 days

Site approval and environmental


clearance

Department of Environment

90 days

Adequacy certificate

Rajasthan State Pollution Control


Board

Green category: 30 days

No-objection certificate

78

Red category: 45 days

DOING BUSINESS IN RAJASTHAN


Rajasthan

November 2010

Key approvals required (2/2)


Service/facility

Concerned agency

Timelines
Load up to 60 HP: issue of demand notice in 21 days
Release of connection: 30 days from demand notice
Load from 60 HP-300 KW: demand notice in 30 days

Jaipur Vidyut Vitran Nigam Ltd*


Release of power
connection

Ajmer Vidyut Vitran Nigam Ltd^


Jodhpur Vidyut Vitran Nigam Ltd

Release of connection: 60 days from issue of demand


notice
Load 300-3,000 KW: issue of demand notice in 60 days
Release of connection: 75 days from issue of demand
notice
Load above 3,000 KW: issue of demand notice 60 days
Release of connection: 90 days from issue of demand
notice

*Responsible for 12 districts of Rajasthan, namely Jaipur, Dausa, Alwar, Bharatpur, Dholpur, Kota, Bundi, Baran, Jhalawar, Sawaimadhopur, Tonk and
Karoli.
^Responsible for 11 districts of Rajasthan, namely Ajmer, Bhilwara, Nagaur, Sikar, Jhunjhunu, Udaipur, Banswara,
Chittorgarh, Rajsamand, Doongarpur and Pratapgarh.

79

DOING BUSINESS IN RAJASTHAN


Rajasthan

November 2010

Cost of doing business


Cost parameter

Cost estimates

Source

US$ 75 to US$ 151

Industry sources

US$ 2.1 to US$ 2.5

Industry sources

Hotel costs (five-star)

US$ 95 to US$ 385 per room per night

Leading hotels in the state

Office space rental


(per sq ft)

US$ 0.22 to US$ 2.5 per month

Industry sources

Residential space rental

US$ 0.05 to US$ 0.28 per sq ft per month


(rates depend on the type of structure and location)

Industry sources

Power cost (per kWh)

Industrial use (Jaipur): US 7.6 cents to US 8.7 cents


Fixed charge: US$ 0.76 to US$ 1.96 per HP

Jaipur Vidyut Vitran Nigam Limited


(Jaipur Discom)

Cost of water (per kl)

Commercial and industrial:


0 to15,000 kl: US 24 cents
15,000 to 40,000 kl: US 35 cents
40,000 kl and above: US 50 cents

Public Health Engineering


Department, Rajasthan

Industrial land
(per sq ft)
Labour cost
(per man year)

HP: horsepower; kl: kilolitre

80

DOING BUSINESS IN RAJASTHAN


Rajasthan

November 2010

Single-window clearance mechanism

District Single Window Clearance


Committee for each district in the state
which is chaired by the Deputy
Commissioner, with senior-most officers
of concerned departments in the district
as members.

Board of
Infrastructure
Development
and Investment
(BIDI)

Empowered Committee chaired by Chief


Secretary to Government of Rajasthan
and with Principal Secretaries of
concerned state departments as
members.

State Level
Empowered
Committee
(SLEC)

State Board with the Chief Minister of


Rajasthan as its Chairman and ministers
of state departments as its members.

District Level
Empowered
Committee

81

Under the
chairmanship of

Nodal
Agency

Chief
Minister of
Rajasthan

Bureau of
Investment
Promotion

Chief
Secretary

District
Industry
Centre
district level

Deputy
Commissioner

DOING BUSINESS IN RAJASTHAN


Rajasthan

November 2010

Key investment promotion offices


Bureau of Investment Promotion
(BIP)

BIP is the State Government's nodal agency for attracting foreign direct investment
(FDI) and non-resident Indian (NRI) investments. BIP functions as a single-window
agency for clearing all medium and large scale investments.

BIP assists in investing in Rajasthan in many ways such as identifying investment


opportunities, providing access to information that is critical to setting up of project,
translation of investment possibilities into concrete investment proposals, site-selection
activities and obtaining infrastructural facilities. It helps in interfacing with government
departments for required clearances.

RIICO is the sole agency in the state that develops land for the industrial growth. It
provides financial assistance and other vital infrastructural facilities for industries.

Rajasthan Financial Corporation


(RFC)

RFC provides medium and long-term loans for new industrial units in the SME sector. It
also assists in planning a balanced development of industries in the state.

Project Development Corporation

The corporation identifies commercially viable infrastructure projects, prepares detailed


feasibility and investment reports and offers to the private sector for implementation.

Rajasthan State Industrial


Development and Investment
Corporation (RIICO)

82

DOING BUSINESS IN RAJASTHAN


Rajasthan

November 2010

Contact list
Key agency

Contact information

Bureau of Investment Promotion (BIP)

Udyog Bhawan, Tilak Marg


Jaipur - 302005, Rajasthan
Phone: 91-141-2227 274, 2227 812, 2227 713
Fax: 91-141- 2227 506
E-mail: bip.raj@nic.in
Website: http://www.investrajasthan.com/

Rajasthan State Industrial Development and Investment


Corporation (RIICO)

Udyog Bhawan, Tilak Marg


Jaipur, Rajasthan
Phone: 91-141-5113 200 /5113 208/5113 211
E-mail: md@riico.co.in
Website: www.riico.com

Rajasthan Financial Corporation (RFC)

Udyog Bhawan, Tilak Marg


Jaipur - 302005, Rajasthan
Phone: 91-141-2385 522
Fax: 91-141-2385 503
E-mail: info@rfconline.org

Project Development Corporation

First Floor, LIC Jeevan Nidhi Building


Near Ambedkar Circle,
Bhawani Singh Road,
Jaipur - 302005, Rajasthan
Phone: 91-141-2747012-14
Fax: 91-141-2747045
E-mail: info@pdcor.com

83

DOING BUSINESS IN RAJASTHAN


Rajasthan

November 2010

Annexure (1/3)
Illiterate

School up to four
years/ literate,
but no formal
schooling

School up to five
to nine years

SSC/HSC

Certificate course,
but not
graduate

Graduate/post
graduate
general

Graduate/post
graduate
professional

Socio-economic classification (SEC) of urban and rural households urban grid

Unskilled workers

E2

E2

E1

Skilled workers

E2

E1

B2

B2

Petty traders

E2

B2

B2

Shop owners

B2

B1

A2

A2

Entrepreneurs: employee none

B2

B1

A2

A2

A1

Entrepreneurs: employee < 10

B2

B2

B1

A2

A1

A1

Entrepreneurs: employee > 10

B1

B1

A2

A2

A1

A1

A1

Self-employed professionals

B2

B1

A2

A1

Clerical/salesman

B2

B1

B1

Supervisory level

B2

B1

A2

Officers/executives: junior

B2

B1

A2

A2

Officer/executive: middle/senior

B1

B1

B1

B1

A2

A1

A1

Education/occupation

Source: Market Research Society of India

84

DOING BUSINESS IN RAJASTHAN


Rajasthan

November 2010

Annexure (2/3)
Socio-economic classification (SEC) of urban and rural households rural grid

Type of house
Education

Pucca

Semi pucca

Kuccha

Illiterate

R4

R4

R4

Literate but no formal school

R3

R4

R4

Up to fourth standard

R3

R3

R4

Fifth to ninth standard

R3

R3

R4

SSC/HSC

R2

R3

R3

Some college but not graduate

R1

R2

R3

Graduate / post graduate


(general)

R1

R2

R3

Graduate / post graduate


(professional)

R1

R2

R3

Source: Market Research Society of India

85

DOING BUSINESS IN RAJASTHAN


Rajasthan

November 2010

Annexure (3/3)
Exchange rates
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010

INR equivalent of one US$


46.6
48.3
48.0
45.6
43.7
45.2
45.0
42.0
40.2
46.0
47.4

Average for the year

86

RAJASTHAN

November 2010

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87

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