Professional Documents
Culture Documents
Rajasthan190111 13188337885879 Phpapp01 111017015126 Phpapp01 PDF
Rajasthan190111 13188337885879 Phpapp01 111017015126 Phpapp01 PDF
November 2010
RAJASTHAN
November 2010
Resources/Inputs
Incentives to industry
Investment
climate of a state
Regulatory framework
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
ADVANTAGE RAJASTHAN
Rajasthan November 2010
ADVANTAGE RAJASTHAN
Rajasthan November 2010
ADVANTAGE RAJASTHAN
Rajasthan November 2010
Rajasthan
All-states
Source
4.5
100.0
11.5
11.8
684.9
992.5
5,050.4
159,398.5
25,487,398
456,586,162
145,449
4,981,976
5,585
70,548
133
60.4
64.8
27.5
22.8
Economy
Physical infrastructure
Airports (No)
As of October 2008
Ministry of Road Transport &
Highways, Annual Report 2008-09
Social indicators
ADVANTAGE RAJASTHAN
Rajasthan November 2010
Rajasthan
All-states
Source
0.5
120.2
53.6
1,972.6
54
515
www.pppindiadatabase.com
SEZ (No)
363
Industrial infrastructure
Parameter
Rajasthan Government
Policy support
Availability of labour
ADVANTAGE RAJASTHAN
Rajasthan November 2010
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
November 2010
Rajasthan
Capital
Jaipur
342,239
33
165
56.5
29.4
27.1
17.3
921
60.4
Male (%)
75.7
Female (%)
43.9
62.2
62.8
11
November 2010
Rajasthans GSDP
Rajasthans GSDP
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
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
November 2010
Rajasthans NSDP
Rajasthan NSDP
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
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
November 2010
45.2
11.0%
30.0
11.9%
32.0
24.7
7.5%
1999-2000
2009-2010
25.8
Primary Sector
Source: CMIE
14
Secondary Sector
Tertiary Sector
November 2010
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
November 2010
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*
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
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
November 2010
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
17
Medical
Rajasthan
Durable goods
November 2010
Cement
IT and ITeS
Ceramics
Mining
Tourism
Textile
Agro-based industry
Marble
18
November 2010
Crop
Wheat*
5,827 .0
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)
November 2010
-25.1
2007-08
-19.2
2006-07
141.0
33.5
2005-06
15.9
2004-05
2003-04
23.0
39.5
2002-03
2001-02
7.1
16.2
2000-01
-50.0
E: Estimated
20
0.0
50.0
100.0
150.0
November 2010
Electricity
Construction
4.5%
5.1%
Machinery
33.3%
Services
13.6%
Mining
18.7%
Non-metallic
mineral products
Chemicals
19.8%
Others
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)
Road type
23
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)
24
INFRASTRUCTURE STATUS
Rajasthan
November 2010
Railways
25
INFRASTRUCTURE STATUS
Rajasthan
November 2010
Airports
International airport
Domestic airport
26
INFRASTRUCTURE STATUS
Rajasthan
November 2010
Telecom
^As of 2009
27
Bharti Airtel
Tata Teleservices
Reliance Communications
Vodafone Essar
Etisalat DB Telecom
INFRASTRUCTURE STATUS
Rajasthan
November 2010
Power (1/2)
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
3,000.0
2,000.0
1,000.0
2005-06
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
Power
transmission
Power distribution
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
Sector
PPP type
Project cost
(US$ million)
Stage
Gurgaon-Kotputli-Jaipur road
Roads
BOT-Toll
363.9
Construction
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
BOOT
43.5
Under bidding
Tourism
BOOT
43.4
Construction
Roads
BOT-Toll
42.3
Construction
Narmada road
Bharatpur-Mahua 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
Pupil-teacher ratio^
28:1
Net-enrolment ratio in
primary schools^
99.5
R N T Medical College,Udaipur
INFRASTRUCTURE STATUS
Rajasthan
November 2010
Health infrastructure
4,369
1,372
Birth rate*
27.5
Death rate*
6.8
63
Male
62.2
Female
62.8
33
INFRASTRUCTURE STATUS
Rajasthan
November 2010
Cultural infrastructure
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
Logistics
For ease of movement of cargo, ICDs have been set up at Jaipur, Jodhpur, Bhiwadi
and Bhilwara.
Food processing
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
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
Location
Primary industry
Jaipur SEZ
Jaipur
Jodhpur SEZ
Jodhpur
Handicrafts
IT/ITeS
Notified SEZs
Company name or developer
Location
Primary industry
Mahindra Gesco
Jaipur
IT/ITeS
Mansarovar Industrial
Development Corporation
Jodhpur
Handicraft
Jaipur-Ajmer expressway
IT/ITeS
Bikaner
Light engineering
Handicrafts
Source: sezindia.nic.in
37
INFRASTRUCTURE STATUS
Rajasthan
November 2010
Location
Primary industry
GENPACT
Jaipur
IT/ITeS
Location
Primary industry
Omaxe Limited
Alwar district
Multi-product
Ansal Properties and Infrastructure Limited Jaipur district, village Sangtera, Kotputli tehsil
Multi-product
Multi-product
Alwar district
Multi-services
Multi-product
Alwar
Multi-services
Building materials
DLF Limited
Multi-product
Udaipur district
Multi-product
Source: sezindia.nic.in
38
INFRASTRUCTURE STATUS
Rajasthan
November 2010
Jodhpur SEZ
(Handicrafts)
Mahindra Gesco
(Jaipur)
Somani Worsted
Limited
39
INFRASTRUCTURE STATUS
Rajasthan
November 2010
Index
Cement grade limestone
Automotive
Tourism
IT and ITeS
Handicraft, gems and jewellery
Chemicals
40
INFRASTRUCTURE STATUS
Rajasthan
November 2010
Infrastructure investments
Infrastructure type
Investments
(US$ million)
Power*
6,504.3
Roads
2,087.1
2,077.8
Airport
1,020.6
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
November 2010
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
November 2010
Key initiatives:
To ensure availability of water in the state where the supply is lesser than the demand.
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
November 2010
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).
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
November 2010
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 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
November 2010
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
November 2010
Developing e-governance framework for charting strategic growth plans and formulating appropriate policy measures.
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
November 2010
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.
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
November 2010
Special package of incentives to the micro, small and medium enterprises (MSMEs) to promote their growth. Some of the key
incentives are:
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
November 2010
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.
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
November 2010
52
November 2010
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.
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
November 2010
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.
Preservation of rich natural habitat and bio-diversity, historical architectural and cultural heritage of Rajasthan; special emphasis
on conservation of historical monuments in Rajasthan.
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
56
Key players
ACC
BUSINESS OPPORTUNITIES
Rajasthan
November 2010
Ambuja
Cements Limited
Birla Corporation
Limited
Shree Cement
ACC is the largest cement producer in India; its plant at Bundi, Rajasthan, has a production
capacity of 1.5 MTPA.
Ambuja Cements Limited has cement plants in Rajasthan, Maharashtra, Gujarat, Himachal
Pradesh, Punjab, Chhattisgarh and West Bengal.
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.
The company has limestone deposits at Morak, ideal for the manufacturing portland cement.
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.
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
Binani Cement
Limited
Laxmi Engineers
Works
JK Lakshmi Cement
Limited
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.
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.
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
59
Copper
Banswara
Gold
Banswara
Gold, silver
Banswara
Ajmer
BUSINESS OPPORTUNITIES
Rajasthan
November 2010
60
BUSINESS OPPORTUNITIES
Rajasthan
November 2010
Hindustan Copper
Limited
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.
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
Liberty Whiteware
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).
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
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
64
Key players
Ashok Leyland
TAFE
Caparo Fasteners
MICO
Continental Engines
BUSINESS OPPORTUNITIES
Rajasthan
November 2010
Ashok Leyland
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.
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
National Engineering
Industries 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).
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.
It serves as an original equipment manufacturer (OEM) for the domestic, European and Japanese
vehicle manufacturers in India including Eicher, Komatsu and FIAT.
66
BUSINESS OPPORTUNITIES
Rajasthan
November 2010
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.
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.
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.
Caparo Fasteners
Federal-Mogul
Goetze (India)
Limited
67
BUSINESS OPPORTUNITIES
Rajasthan
November 2010
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
Zari/Zardosi
Quilting
69
JK Synthetics
Shriram Rayons
Modern Threads
BUSINESS OPPORTUNITIES
Rajasthan
November 2010
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.
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.
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.
70
BUSINESS OPPORTUNITIES
Rajasthan
November 2010
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.
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.
71
BUSINESS OPPORTUNITIES
Rajasthan
November 2010
IT sector
72
Key players
Infosys
Tech Mahindra
Genpact
Wipro Technologies
Nagarro
BUSINESS OPPORTUNITIES
Rajasthan
November 2010
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
The company employs about 43,300 professionals in total and over 3,000 people in the Jaipur facility.
73
BUSINESS OPPORTUNITIES
Rajasthan
November 2010
Nagarro
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
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.
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
The companys products are mainly used in the paper and rubber industries.
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.
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
November 2010
Industrial licence
Sponsorship for raw-materials and
inputs
Estimated time
Land allotment
30 days
30 days at the district-level
60 days for state government approval
30 days for district-level clearance
Incentives
Sanction of loan
Department of Environment
90 days
Adequacy certificate
No-objection certificate
78
November 2010
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
*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
November 2010
Cost estimates
Source
Industry sources
Industry sources
Industry sources
Industry sources
Industrial land
(per sq ft)
Labour cost
(per man year)
80
November 2010
Board of
Infrastructure
Development
and Investment
(BIDI)
State Level
Empowered
Committee
(SLEC)
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
November 2010
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.
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.
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.
82
November 2010
Contact list
Key agency
Contact information
83
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
Unskilled workers
E2
E2
E1
Skilled workers
E2
E1
B2
B2
Petty traders
E2
B2
B2
Shop owners
B2
B1
A2
A2
B2
B1
A2
A2
A1
B2
B2
B1
A2
A1
A1
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
84
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
R3
R4
R4
Up to fourth standard
R3
R3
R4
R3
R3
R4
SSC/HSC
R2
R3
R3
R1
R2
R3
R1
R2
R3
R1
R2
R3
85
November 2010
Annexure (3/3)
Exchange rates
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
86
RAJASTHAN
November 2010
DISCLAIMER
India Brand Equity Foundation (IBEF) engaged
ICRA Management Consulting Services Limited (IMaCS)
to prepare this presentation and the same has been
prepared by IMaCS in consultation with IBEF.
87