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Green Kashmir

Skilled Kashmir

Investment opportunities
In Azad Jammu & Kashmir

Department of Industries & Commerce Azad Government of the State of Jammu and Kashmir

Invest your Saving

Serve your Nation

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CONTENTS
S. No. Contents
Message of Prime Minister GoAJK Map / Accessibility of AJ&K Introduction 1 Industrial Sector Industries Established in AJK Existing Industrial Estates / Infrastructure Available plots & Mode of Payment Industrial Policy & Incentives Proposed New Industrial Estates Investment potential / Opportunities Procedure / Contact No. 2 3 Handicrafts Mineral Resources Regulatory Regime Procedure for grant of mining concessions Incentives Investment Opportunities in Mineral Sector 4 5 Tourism Hydro Power Generation Approved project of Hydro Power Power policy Potential Projects for investments Technical and Financial Parameters Project Profile

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03 04 5 6 7 7 8 8 9 9 10 21-27 28 28 28 29 32-37 38-41 42 42 44 46 47-49 50

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MESSAGE OF THE PRIME MINISTER OF AZAD JAMMU & KASHMIR SARDAR ATTIQUE AHMED KHAN.

Azad Jammu and Kashmir is rich in water and mineral resources and nature has been generous in bestowing scenic beauty to this part of the world. Present regime of Azad Jammu And Kashmir has granted a number of incentives to the investors for promotion of Industrial activities in the State. The State of Azad Jammu and Kashmir offers great opportunity to the investors, including five lac overseas Kashmiri nationals possessing dual nationality to invest in industrialization, Hydel power generation, Mineral exploitation, Kashmiri Handicrafts and Tourism industry. Let me assure the intending investors that they will get required assistance from the Government of the state and every step will be taken to guarantee the protection of their capital investment. Human resource development is on high priority of the Govt. and we hope that expertise of skilled manpower will not be in short supply for any activity that investors choose to under take. Reconstruction activity in the earthquake hit area is about to commence and the same offers a great opportunity for investment in the construction related industry. We invite the investors to seize this opportunity and hope that this message is well taken.

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Accessibility to

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INTRODUCTION Azad Jammu and Kashmir is the liberated part of the State of Jammu and Kashmir. It lies between longitude 73o - 75o and latitude of 33o – 36o and comprises of 5,134 sq. miles or 13,297 sq. kms. The topography is mainly hilly and mountainous with valleys and plains in some places. The area is full of natural beauty, with thick lush green forests, precious minerals, fast flowing rivers and winding streams. The main rivers are Jehlum, Neelum and Poonch. Climatically Azad Kashmir enjoys a considerable measure of variety. The North and North western mountains and extremely cold in winter while the summer months from April to September are very pleasant. The regions of Mirpur, Kotli and Bhimber are extremely hot in summer while cold and dry in winter season. The rains are of the monsoon type, the average rainfall is approximately 1300mm annually. The population of Azad Kashmir is 3.5 million and out of total population 88% are living in rural areas while 12% are settled in urban areas. The literacy rate is above 60%. The average per capita income has been estimated to range from 500 to 600 US$. GOVERNMENT Azad Jammu & Kashmir has a parliamentary form of Government. The president of Azad Jammu and Kashmir is the constitutional Head of the State while the Prime Minister supported by a council of Ministers, is the chief Executive. Azad Jammu & Kashmir has its own Supreme Court and a High Court besides Legislative Assembly comprising 41 directly and 8 indirectly elected members. ADMINISTRATION Capital of Azad Jammu & Jammu and Kashmir is situated at Muzaffarabad, while Azad Jammu & Kashmir is divided into three divisions i.e. Muzaffarabad, Poonch & Mirpur and ten (10) administrative districts. The Muzaffarabad Division comprises the district Muzaffarabad, Neelum & Hattian Bala, Poonch Division, Poonch , Bagh, Sudhnoti and Haveeli, whereas Mirpur Division comprises the districts of Mirpur, Kotli and Bhimber.

INDUSTRIAL SECTOR At the time of independence in 1947, the economy of Azad Jammu & Kashmir was on subsistence level. It was early 70’s, when economic development of the area started. Despite financial constraints, efforts were made in developing infrastructure for the rapid development of the area. The State of Azad Jammu & Kashmir by virtue of its topography, meteorology, hydrology and administrative set up provides adequate opportunities of investment in various sectors. The Govt. of Azad Jammu and Kashmir is encouraging investment in the following sectors. i. Medium and large Industries. ii. Kashmiri Handicrafts. iii. Mineral Resources. iv. Hydropower Generation. v. Tourism.

9. 30. 44. 01 43 10 03 01 03 07 10 110 01 01 02 56 02 07 03 02 04 01 02 08 01 12 4. 32. Beverages Cigarette Factories Crush Machines CNG Stations Diesel Engine Assembling Foam Industries Food Items (Bakeries / Spices etc. 20. 33. 35. 38. 12. 28. 16.# 2.G Filling plants Motor Cycle Marble Factories Melamine Industry Poly Propylene Plastic Industry Polyester Yarn Paper Mills Resin Industry Shoe Factories Steel re-rolling & furnaces Scooter/ Rickshaw (VESPA) Textile/ Weaving Nos. medium & large scale Industrial Units which have been established in AJ&K during last few decades and majority of these are still operational inspite of national & international economic crises. 3. 10. DETAIL OF ESTABLISHED INDUSTRIES IN AJ&K S. 42. 23. 24. Nature of Industry Auto Parts /Engineering Workshops Arms Manufacturing (Small) Block Factories Cosmetic Cement Factory (Mill) Chip / Fiber Board Industry Electronic Products / Wire Flour Mills Filling Stations (Petroleum) Hydropower generation L. 36. 40. 18. 21. 45. 26. 39. 25. 14. There are various types of small. 46. 27. 8. 41. 15.) Ghee Mills Ice Factories Mineral Water Match Factories Main Hotels Miscellaneous Pharmaceutical Industry PVC Pipe Poultry Forms Printing Press RCC Pipe Industries Steel Works Sugar Mills Soap & detergent Factories Wood Works & Furniture 03 16 104 04 02 09 105 03 12 05 02 92 47 07 02 775 35 32 166 01 06 216 . 31. 17.# 1.6 MEDIUM AND LARGE INDUSTRIES: Owing to close proximity to the market of Pakistan district Mirpur and Bhimber are most suitable locations for establishment of Medium and large scale industries. 7. 13. 19. 5. 34.P. 43. 10 S. DETAIL OF INDUSTRIES ESTABLISHED IN AJK. Nature of Industry Abrasive Paper Nos. 29. 11. 37. 22. 6. However some opportunities for small & medium Industries are also available in Northern areas (Poonch & Muzaffarabad) of AJ&K.

94800 13 42 5. . 67000 25 29 64 3. 100000 34 92 111 4. 100 50 25Kanal 08 04Kanal 02Kanal 01Kanal Kanal Kanal Kanal 1.# Name of Industrial Estates New Industrial Area Mirpur Small Industrial Estate Bhimber Mini Industrial Estate Mirpur Mini Indsutrial Estate M. the Department of Industries of Azad Jammu and Kashmir has established six Industrial Estates in various districts of Azad Jammu and Kashmir providing basic infrastructure like roads. 25% down payment and remaining 75% to be paid in 5 installments in 5 years for New Industrial Area Mirpur. 85000 10 20 32 20 35 42 118 2. 2. water supply. Detail of Industrial Estates with graded plots & price per Kanal is as under: S. 20% down payment and remaining 80% to be paid in 20 installments in 20 years for all other Industrial Estates.7 EXISTING INDUSTRIAL ESTATES / INFRASTRUCTUR To accelerate the pace of development through industrialization. 126900 7 53 6.Z. 113220 17 43 MODE OF PAYMENT 1.D Mini Industrial Estate Kotli Mini Industrial Estate Rawalakot Price of plot per kanal In Rs. sewerage system. telephone and electricity etc.

of Azad Jammu and Kashmir has adopted the policy of Govt. ii. c) Explosive material. financial institutions & loan giving agencies for industries being set up in Azad Kashmir.] d) Free transaction of principal amount and profits without the prior permission of the Government for foreign investors. b) Security printing. e) Exemption for Octroi and Local Taxes for five years from the date of commencement of production. Bhimber. PROPOSED NEW INDUSTRIAL ESTATES / INFRASTRUCTURE. c) Muslim Commercial Bank (MCB). a) Exemption of Industrial products from payment of Sales Tax for a period of five years from the date of production. a) Arms and Ammunition. h) To provide local. Industrial Policy Govt. f) Industrial plots are allotted in the Industrial Estate of Mirpur. cheep and skilled Labour Force for Industrialization under the management of AJKTEVTA more than 170 Vocational Training Institutes. Industrial Training Centers & Skill Development Centers (for Males & Females) including a Poly Technique Institute are functional. Accordingly except the following all type of industries are allowed to be established in Azad Kashmir. FINANCING FACILITIES a) Allied Bank Limited of Pakistan (ABL). SPECIAL INCENTIVES FOR INDUSTRIALIZATION IN AJK. of Pakistan. Kotli and Rawalakot on easy installments to be recovered in a period of 20 years without profit. i) Establishment of Dry Port at Mirpur (In Process) iii. Muzaffarabad.8 INDUSTRIAL POLICY AVAILABLE INCENTIVES AND FACILITATION i. f) Habib Bank Limited of Pakistan (HBL) g) United Bank Limited of Pakistan (UBL). d) Bank of Azad Jammu & Kashmir e) National Bank of Pakistan (NBP). b) Agricultural Development Bank of Pakistan (ADBP). while in new industrial area in 5 years. The detail of Investment Policy & Incentives attached as (Annexure “I”).. b) Conducive environment for investors including foreigners in free and fair atmosphere under protection of Economic Reform Act 1992. c) No foreign industrial or commercial enterprise established or owned in any form by a foreigner or Pakistani investor shall be compulsorily taken over by the government [Ref: Protection of Economic Reforms Act 1992. . d) Radioactive material. g) Provision of loan facilities in local as well as foreign exchange from the national banks.

9.5 Acrs has been reserved. 31 32 Hydro Power Generation Chip / Fiber board-manufacturing P. 6. Water Supply. 27. In process with SNGPL & MoP GoP 7) PROVISION OF BASIC SERVICES IN NEW INDUSTRIAL AREA MIRPUR (PHASE– II). 10. grills rates etc Machinery spare parts manufacturing Bolts and nuts plants Flush Door making units Calcium carbide producing units Solar Panels & Products Marble chips & powder making units Pre Fabricated Building Structure Tourism & Silk Reeling Electronic products / wires . 6) SUPPLY OF OF SUI-GAS TO INDUSTRIAL UNITS IN AJ&K.K). LIST OF POTENTIAL PROJECTS FOR AZAD KASHMIR S. ready made garments. 22. Land measuring 12. 20. furniture.58 Acres has been reserved for establishment of Dry Port at Mirpur. 7. is in process. of Pakistan infrastructural development of Dry Port at Mirpur will be started. where as PC-II for establishment of Project Management Unit has already been submitted to P&DD GoAJK. plastic products.C & RCC Pipe manufacturing Filling stations Fruit / vegetable preservation and spices grinding Hotels & Motels Steel furniture. 21. (In Process) 5) ESTABLISHMENT OF DRY PORT AT MIRPUR (A.# Name of Projects 1. Hydro power generation. 25.V. 5. 24. after legal proceeding / notification from Govt. 19. 2. 29. 18. 26. 2) MIAN MUHAMMAD BUX INDUSTRIAL ESTATE MIRPUR Working on acquisition of land measuring almost 625 Acres is in process. 11. 12. 3. there are so many opportunities of investment in various Industries like food. Land measuring 12. DEMAND BASED INVESTMENT POTENTIAL & OPPERTUNITIES Keeping in view the potential & requirement of AJ&K. 8. Sewerage System & Electricity etc. 8) ESTABLISHMENT OF DRY PORT AT MIRPUR. 14 15 16 Herbal Medicines Furniture industry Ceramic tableware Polythene bags (shopping bags) Mineral Based Industry Capacitor manufacturing projects Wooden crates making units Agricultural implements/ tools plants Tooth picks producing Poultry forming Cement Industries Batten Board plants Potato chips plants Pharmaceutical Industries Transport & Rubber Tyre factories Mineral water / Beverages 17. 13. 23. 4) ESTABLISHMENT OF EXPORT PROCESSING ZONE AT MIRPUR. 4. 28. 3) RECONSTRUCTION OPPORTUNITY ZONE (ROZ) AT MZD & RAWALAKOT Land area measuring almost 125 Acres each at Brarkot Muzaffarabad & Rawalakot is identified. Tourism and Mineral based industries are available in the area. Estimation of Internal Roads. 30.9 1) INDUSTRIAL ESTATE DUDYAL Land measuring 50 Acres has been acquired and development is in process.# Name of Projects S.

05827-922191 Assistant Director Industrial Estate Bhimber. Certificate of Financial Soundness regarding applicant from the Bank. 05822-920801 Industrial Development Officer Kotli.10 PROCEDURE FOR ALLOTMENT OF INDUSTRIAL PLOTS Following documents should be enclosed with applications. NOC from Environmental Protection Agency of AJ&K Govt. Commerce & Labour GoAJ&K Muzaffarabad. 05822-920636 Joint Director Labour Muzaffarabad Phone No. 05822-920528 Fax No. 05822-920721 Joint Director Industries Mirpur. In case of a foreigner a copy of Registration Certificate from the Registrar of Companies GoAJK. Phone No. Phone No. 05826-920483 Industrial Development Officer Rawalakot Phone No. Phone No. Phone No. 05828-920222 Industrial Development Officer Muzaffarabad. 0334-5061432 . 05822-920929 Project Manager New Industrial Area Mirpur. FOR FURTHER DETAILS PLEASE CONTACT Director Industries. 05827-921589 Fax No. Phone No. Two copies of feasibility reports of proposed project with dully filled Forms “B” & “C” (Annexure II). 05827-921588 Deputy Director Industries Muzaffarabad. Phone No. name of Shareholders/ Directors and other related details. Phone No. In case of a company. Single line plan of covered area required for proposed Industrial set up.

• • • . To facilitate investors and investment on a fast track basis President’s Investment Initiative was launched in September 2005.15 million from $0. Most important initiative of the Government was to further open up Service Sector by allowing 100% foreign equity along with 100% repatriation facility. Equal investment opportunities for both domestic and foreign investors. the tariff structure has been revised and a modest custom duty of 5% is now levied on the import of plant. investors and representative forums as well as the Multinational Companies (MNCs) and other stake holders. • • • KEY FEATURES OF INVESTMENT POLICY a) Equal Opportunities Investment policy is liberal and business friendly as it has been designed in consultation with businessmen.15 million. The President and the Prime Minister of Pakistan personally chair regular meetings to take stock of progress on the projects. infrastructure and social sectors. machinery and equipment (PME) not manufactured locally. All sectors of the economy are open to Foreign Direct Investment (FDI) with up to 100% equity. I. with the Minister of State / Chairman BOI as its Chief Coordinator. Currency and Mint.30 million. In order to promote investments in the Productive Sectors and to boost the indigenous industry. b) No Government sanction required All economic sectors open for FDI. Minimum foreign equity for non-manufacturing including service sector has been reduced from $ 0. No sanctions are required from the Government. In Agriculture. A policy for Corporate Agriculture Farming (CAF) is being prepared with the objective of enhancing productivity and to make use of wastelands. The Government has been pursuing a liberal and market oriented policy that provides equal investment opportunities to both domestic and foreign investors. it is $ 0. Also the minimum threshold for foreign equity has been reduced to $0. There is no requirement for obtaining No Objection Certificate (NOC) form the AJK government for locating the project anywhere in the country except in areas that are notified as sensitive / security zones. Radioactive substances Security Printing.3 million to $ 0.11 Annexure – I Investment Policy and Incentives The government is making all efforts to facilitate and encourage foreign investors and has formulated a business friendly and liberal Investment Policy. (C) Foreign Equity 100% foreign equity allowed in all sectors. No Government sanction is required for setting up any industry except for the following sensitive industrial units: Arms and ammunitions High Explosives.3 million.

12 II. Technical & Franchise Fee. • 0% Sales Tax on import of machinery. loan agreements should be registered / cleared by the State Bank of Pakistan. in existing industries. • Any furniture. Capital. Profits. eligible depreciable asset” means plant and machinery excluding the following: • Any road transport vehicle unless the vehicle is playing for hire. • 0% duty on import of raw material for export industry. • The facility for obtaining foreign private loans is available to all foreign investors. Modernization & Replacement (BMR). for financing the cost of imported plant and machinery required for setting up the project. including fittings any plant or machinery that is acquired second hand or • Any plant or machinery in relation to which a deduction has been allowed under another section of this Ordinance for the entire cost of the asset in the tax year in which the asset is required. not manufactured locally. However. FISCAL INCENTIVES • Initial Depreciation Allowance • Initial Depreciation Allowance at the rate of 50% is permissible on an “eligible depreciable asset” placed into service in Pakistan for the first time in a tax year. AMORTIZATION • Amortization of recommencement expenses allowed at the rate of 20% annually. • Foreign controlled manufacturing concerns will be treated at par with other local companies for obtaining financial facilities for their working capital requirements.000 and subsequently maximum @ 5% of net sales initially for 5 years. • Foreign Controlled companies are allowed domestic borrowing to meet their working capital requirements. • Tax relief has also been provided for expansion and Balancing. and Dividends allowed. These loans do not involve any guarantee by the Government of Pakistan. • No. • Amortization of intangible assets allowed over a period of ten years. III. restriction on payment of Royalty and Technical fee. • Tax relief in shape of Initial Depreciation Allowance (IDA) has been provided @ 50% of the cost of machinery across the board. • 0% duty on import of agriculture machinery. . For the purpose of such allowance. TARIFF & TAXINCENTIVES • 5% customs duty on import of plant and machinery. The entrepreneurs are allowed to pay an initial lump sum upto $ 100. EXCHANGE CONTROL • Remittance of Royalty. Corporate Tax Rates – Financial Year (2006-07) Public Companies 35% Private Companies 35% Banking Companies 35% IV.

No compulsion for a limited company to offer share to the public irrespective of the size of capital or total value of assets. Protection of Economic Reforms Act. VI. accommodation. • Measures have been taken in areas like domestic borrowing facility to foreign controlled companies. 1992. VII. import exceeding the above duty free limit of US$ 1000 will be allowed on payment of normal import duties. executives. 1976. transport bookings. business visas. for foreign investors visiting Pakistan. MISCELLANEOUS • Industry Status has been given to Tourism. However. etc. Hotel bookings. • Improvements have been made pertaining to the procedures for work visas. V. and opening of branch / liaison office by foreign companies. • • LEGAL PROTECTION TO INVESTMENT Foreign investment is fully protected by following Acts: Foreign Private Investment (Promotion & Protection) Act. improvement in quality of life. labour laws. • The BOI extends a courtesy service covering reception in Pakistan. • Various communities of foreign investors and their employees are allowed to establish Exclusive Clubs with recreation facilities. and assisting with the business itinerary. . etc.13 • • The payments on account of royalties and technical fees to foreign companies are taxable @ 15%. expatriate employees) having “CBR’s pass Booklet” are allowed duty-free import of food stuffs and other consumable items equivalent to US$ 1000 per year per person in Pakistan. provided the equity investment is at least US$ 10 million. IT and Housing & Construction • Network of Export Processing Zones. transfer of technology. incorporation of companies. immigration procedures. EXPATRIATE FACILITATION SERVICES • Foreign nationals (investors. • One Airport Entry Pass for protocol purpose will be issued to foreign and ocal investors / companies.

a separate sheet or sheets may be attached. If the space is not enough to answer a question. AZAD GOVERNMENT OF THE STATE OF JAMMU & KASHMIR. Fax No. ___________________________________________________ 5. MUZAFFARABAD CONFIDENTIAL FOR OFFICIAL USE ONLY Name of Industry ________________________________________ Group _________________________________________________ Serial No. To be filled in by the Estate Officer GENERAL INFORMATION. TO BE FILLED BY THE APPLICANT. 2. Complete answer to all the questions listed below should be given. ______________________________________________ Notes:i. etc. E-Mail address _____________________________________________ Manufacturing Information. False or incorrect information supplied in this application may lead to its summary rejection.14 (Annexure – II) FORM “B” DIRECTORATE OF INDUSTRIES. office. (a) Size of the plot of land applied for _________________________ verification (b) Covered area of building required for the installation of machinery and of each equipment storage & materials. ii. Business address of the applicant _____________________________ __________________________________________________________ Telephone No. ______________________________________________ 4. State Kind of products to be manufactured. after 1. Name and address of the Industrial Unit/ proposed Industrial unit _____________________________________________________________ 3. __________________ item. IF NECESSARY STATE DETAIL ON A SEPARATE SHEET. Product Type Size Raw material mainly used .

total value Rs. _______________ Transportation equipment. Yes/No _________________________________________________________ _________________________________________________________ Describe organization of marketing your products. Ft. ___________ .15 2. _______________ Furniture and Fixtures. _____________ Total Cost. total value: Rs. ___________ Total fixed capital: Rs. Product Type Sales process Quantity exfactory per unit C. _______________ (number of vehicle _____________) Total value of equipment. PRODUCTION REQUIREMENTS. MARKETING. a) Do you intend to export your products. Capital requirements: a) Local currency Rs. furniture and fixtures: Rs. total value Rs. _____________ b) Building (Factory and office building including installations of water and Electricity) size of built up area ___________Sq. furniture and fixtures: Machinery. c) Equipment. _____________ a) Land Rs. _________________________________________________________ _________________________________________________________ D. 1. Do you plan to work in One shift operation Two shift operation Three shift operation 4. Products Type Yearly Quantity Daily Monthly 3. Quantity of the products above you can manufacture with full capacity in one shift operation. a) Fixed Capital Rs. ______________ b) ForeignExchange Rs. State average quantity of products you can to manufacture. _______________ (give details in attachment “A”) Tools and dies. total value: Rs.

______ Water (daily consumption ______________Gallons) Rs. _______________ Foreign Exchange Rs. ___________ Fuel (monthly consumption ___________ Gallons) Rs. Insurances and other administration costs: Rs. _______________ c. Total value of direct materials: (give details in attachment “B”) Rs. ________________ Rs. a) Annual Cost. ___________ Total value of materials and supplies. ___________ Lubricants etc. ___________ . Annual Cost and sales revenues. Monthly wages per person (average) Total labour cost per month Manager Office Staff Skilled workers Semi-skilled workers Un-skilled workers Peons Watchman Total: 4. Electric power: (connected load in k.16 b) Working capital. ________________ Taxes. ___________ 3. Direct materials: Annual Cost. Interest. ________________ Rs. _______________ Own Contribution:Rs. ___________ Office Supplies Rs. ___________ Materials for maintenances (equipment and machinery) Rs. Labour Requirment Qualification `Nos. 2. ____ Total annual cost: Rs. Annual requirements of materials and supplies: a. Indirect materials. Rs. _______________ Total Rs. ___________ Loan Requirements Local Currency: Rs.w _________400_____) Rs. Rs. ________________ Rs. ___________ b. Material and supplies Labour Depreciation Cost Rs. Packaging materials (monthly quantity) Rs.

shareholders. give the name and address of the proprietor ___ _________________________________________________________ _________________________________________________________ _________________________________________________________ ii. i.17 b) Annual Sales Revenues: Products Annual qty. i) ____________________________________________________ ____________________________________________________ . other charges and its ex-factory selling prices. give name and address of the partners and enclose photo static or attach copies of partnership deed and certificates issued by the Registrar of Firms GoAJK. If cooperative society. If proprietary concern. _________________________________________________________ _________________________________________________________ iii. Also enclose a copy of Memorandum and Articles of Association:_________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ 2. company. E.__________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ iv. If partnership concern. who should not by your relatives for reference. number of shares held and paid up value. give names and addresses of Directors. Organizational structure of the firm. given names and address of Directors and principal. If Private or Public Ltd. ___________ Rs. Average sales price per unit Annual Turnover (In Rs. Use for the calculation as separate sheet. Give names and address of two respectable persons. ___________ 5. number of shares held by each and their total value.) Total: Sales Expenses (including commission) Total sales revenues: Rs. 1. Give cost of production per unit showing cost of raw materials labour charges. FNANCIAL INFORMATION.

4. ____________________________________________________ ____________________________________________________ Does the applicant desire to get certain semi-finished product supplied to him for further processing in his plant. like electroplating. _________________________________________________________ Would the applicant agree to cooperate with the Estate Management in the endeavour to improve the quantity of his goods. please specify? 2. If yes. improve production results and better working conditions in general. and in the estimation of production costs etc. tanning etc. ____________________________________________________________ __________________________________________________ Signature i)________________ ii)________________iii) __________ . it is hereby agreed to abide by the terms and conditions of loan laid down by the Bank granting loan. done by some one else in the Estate if yes please specify. In the case that the applicant does not have any previous experience in the line of manufacture he wishes to take up. will be utilized solely for the object mentioned above and will not be utilized for any other purpose. in what way does he intend to acquire cater for the acquired skills. (in block letters) Designation ______________ ii) F. 3. state nature of such goods and the estimated quantities required for the years of operation? Does the applicant wish to have any process. 1. Signature of field Officer. It is hereby declared that particulars given in this application are true and loan applied and plot allotted for.18 ___________________________________________________ ____________________________________________________ ____________________________________________________ OTHER INFORMATION. Does applicant require assistance in the selection. Station____________________Dated ___________________________ (a) Recommendation of the Director Industries ____________________________________________________________ ___________________________________________________ Signature_________________ (b) Final orders of the sanctioning authority/Committee. layout and installation of machinery and equipment. Further. Designation: ________________________ Signature/Name of applicant.

___________________ b) Covered area sq. NEW INDUSTRIAL AREA MIRPUR.BHIMBER. Tick. Does the applicant own any Industrial Unit? (Please Tick) Yes / No. S. MUZAFFARABAD APPLICATION FOR THE ALLOTMENT OF PLOT IN INDUSTRIAL STATES MIRPUR.# Name of the products manufactured Unit Capacity Value Total: iii) VALUE OF ANNUAL PRODUCTION DURING LAST 3 YEARS: S. 3. Name of the applicant with complete address_______________________ ____________________________________________________________ 2. ft. iv) Is the applicant used its manufacturing facilities to their full capacity in the past four years? Yes / No If No.19 (Annexure – III) FORM “C” DIRECTORATE OF INDUSTRIES. of daily workers employed in the last year.# Year Value of annual production 1. Average No. _________________ Connected power at present per year KW _________________ v) vi) vii) viii) . 2.________ If the land and building of the manufacturing plant are taken on rent. ft. __________________ Area of the existing unit:a) Grass area sq.KOTLI. give monthly rent paid Rs. AZAD GOVERNMENT OF THE STATE OF JAMMU & KASHMIR. MUZAFFARABAD ( Please Tick your choice) 1. a) Shortage of raw material. b) Insufficient marketing c) Other reasons (specify).RAWALAKOT. If yes please state:i) Name and location____________________________________ ii) Annual production in the last calendar years.

_____________________ II). If your factory on the Estate. state the number of shifts per day ______________________________ 11. Number of the workers to be employed ____________________________ 10. 6. Of Which covered area will be. ft. Do you propose to ran more than one shift. ____________________________________________________________ __EXPECTED ANNUAL PRODUCTION CAPACITY: S. Ground area of building required for the installation of machinery & equipment storage of materials. office etc. S.20 3.B) 5. (Plot . ft. Value 9. ft. Water consumption estimating per shift on the estate (in gallons)__________________________________ 12.# Description Unit Value Description Qty.ft. ft. ESTIMATED COST OF NEW INVESTMENT ON THE ESTATE:Particulars Pak Currency Foreign Currency Total: 7.000 Sq. Existing water consumption per shift (in gallons) _____________________ ii. I). Name of the Industry the applicant wishes to establishment on the estate. Estimated power connection required on the estate (in K.W.000 Sq. ____ . Sq. specify the requirement: ______________ 5. (Plot . What proportion of the expected production is estimated to be exported. Of the total investment under (7) how much can applicant contribute from his own resources (not borrowed funds) (a) in Pak Currency___________________________________________ (b) In Foreign Currency: ______________________________________ 8. ________________ Sq ft. if more than 20. If so.000 Sq.# Name of the products to be Unit Quantity Value manufactured Total: 4.)_________________ ii.000 Sq. (Plot-C) Or. Connected motor load in the existing concern (in K.W. ____________________________________________________________ Size of the plot applied for: 20.A) Tick One: 10.

21 Signature of the Applicant .

Artisans and experts. Till the recent time. when Mir Syed Ali Hamdani visited Kashmir along with several hundred craftsmen. A reasonable profit margin is available in both manufacturing and marketing of Kashmiri crafts. . A relatively low marketing cost is involved in this business because Kashmiri crafts are known world-wide since centuries.22 Investment Opportunities in Handicrafts Sector of Azad Jammu & Kashmir BACKGROUND The tradition of Kashmiri crafts can be traced back from the era of prerecorded history. with a view to promote productivity of the crafts sector. Raw-material – available Trained skilled force – available Huge demand of Kashmiri Handicrafts in domestic & international market. Plots could be allotted to investors in the Industrial Estates. The craft tradition got major boost in the 14th century. in AJK development and promotion of Kashmir handicrafts has been of the major endeavors of the government. This event revolutionized the religious life of Kashmiris and also infused the ideas of productive economy in Kashmir. employment generation and diversification of markets. Technical advisory is available for project preparation & feasibility studies. INCENTIVES Investment opportunities are available in almost all traditional Handicrafts. These Arts and crafts received the state patron-ship during the era of Zain-ul-Abidin. It has maintained itself and flourished despite the rise & fall of various civilizations.

table lamps to screens. was considered ideal for this carved work. The walnut plants grow at an altitude of 5500 to 7500 feet above the sea level. Dragon. Darbar. chest of drawers. (Juglans regia). writing desks. wine bars. see through. bed steads. WALNUT WOOD CARVING Azad Kashmir. rich. has a rich tradition of wood carving and architecture. A variety of articles both decorative and utilitarian. trays. The important traditional designs are lotus. wall panels. Rezkar. side boards and furnitures etc. The carving is done skillfully in a variety like “Padri”-where it is not deep. Potential Investment Handicrafts/SME’s Walnut wood Carving Potential Investment Areas • Muzaffarabad • Authmuqam Unit cost per project 3.000 million . ranging from smaller items like bowls. with its dense forests and wide variety of Walnut trees. are crafted to meet contemporary demands.23 POTENTIAL AREAS & HANDICRAFTS DEVELOPMENT PROJECTS 1. dark and grainy wood of the walnut tree. it is regarded as most suitable both for carving and wood work. The strong. Due to its durability and natural colour. The fame of kashmiri wood crafts and wood carving rests on the use of Walnut Wood as raw material. undercut and deep carving with indigenous tools. known as dun in Azad kashmir. Poshkaar. cigarette boxes.

WOOD INDUSTRY & JOINERY WORKS Potential Investment Handicrafts/SME’s Wood industry & joinery works Potential Investment Areas • Neelum Valley • Jehlum Valley • Muzaffarabad Unit cost per project 10.000 million .24 2.

Potential Investment Handicrafts/SME’s Carpet Weaving Potential Investment Areas • Muzaffarabad • Darbang Danna • Sudhnuti Unit cost per project 3. These are commonly called “knots”. a connoisseur’s delight.25 3. one beam in front of the weaver and the second behind the first. The raw material inputs are chiefly cotton. The loom used in Kashmiri carpet weaving is composed of two horizontal wooden beams between which the warp threads are stretched. KASHMIRI CARPETS Azad Kashmir has a place in the export trade of hand knotted woolen carpets in the world markets. a cherished acquisition and. Kashmiir carpet is a craze. It gives years of wears and yet provides an aura of elegance. an intimate friend. Very simple tools are used to make carpets in Kashmir. They have received a tremendous fill up during all these years with the products and consumers encouragement. The difference between a carpet and other hand-loom textiles lies in the fact that short lengths of thread or yarn are tied to warp chains to form the pile of the carpets. a wood or metal comb to push knots and weft tightly together. though it is a loop rather then an actual knot. above all. most of them are woven on the cotton warp while some silk carpets have silken warp as well. Kashmiri Carpets are made in wool and silk. Theses include a blade to make the initial cut once the has been knotted. It floor homes and yet adorns the décor. wool and silk yarn dyed in the desired shade through a process exclusively traditional. and a pair of short scissors to cut the carpet to an even form once it is finished.000 million .

Shawls are produced by two techniques. legend goes to say that it can hatch a pigeon’s egg. colour. The basic fabric is of three types-Shah-Tush. It comes a special goat (Capra hircus) which lives at an altitude of 12000 to 1400 ft.500 million . ShahTush (King of wool) the shawl that passes through a ring and is also known as Ring Shawl. Potential Investment Handicrafts/SME’s Traditional Kashmiri Shawl-Bafi • Shah-Tush • Pashmina • Raffle & others Potential Investment Areas • Muzaffarabad • Dhirkot Bagh • Rawalakot Unit cost per project 2. the shawl is the most admired hand-made fabric of Kashmir. loom woven or kani shawls and the needle embroidered or Sozni Shawls. KASHMIRI SHAWLS About Kashmiri Shawls. With a long tradition of artistic excellence. texture and design of the famous Kashmiri Shawl”. Kashmiri Shawls have been renowned since centuries and were favorite of French Queen. Soft yet war. Pashmina known all over the world as cashmere wool. Pashmina and Raffle.26 4. It comes from a reare Tibetan antelope living at a height of over 14000 ft in the wilds of the Himalayas. it is said that “of all sub-continent textiles none excel in beauty. Marie Antoinette.

to 6x9 feet and 3x4. pieces of dyed blankets are joined together and interspread with embroidery. Gabba making is a house hold craft is which family members. The Numdah Makes a warm. is made of used lois or blankets which are washed.000 million . animal figures. In the appliquéd type. folk life scenic views. 5x6 dia in round shape. Popularly made quality is made 32% wool. washed and dried. NUMDAH/GABBA A Numda is a piece of pressed felt made either out of wool and cotton or entirely of wool. In some cheaper types of gabbas.27 5. Gabbas look very gay with bright flashes of designs on a dark. 50% wool and 100% wool. a ‘Common man’s carpet’. Plain as well as embroidered Numdahs can be seen in the entire area of Azad Jammu & Kashir. Originally. Designs are generally styled depicting flowers and leaves. somber background. milled and dyed in various colors. The quality depends upon percentage of wool in the felt. help the embroiderers in stitching together pieces of used lois and giving them a backing of a waste cotton cloth. There are two types of gabbas-embroidered and appliquéd. Bold and vivid emproidery is done mostly in woolen yarn. The Numdah sizes range from 2x3. Potential Investment Handicrafts/SME’s Woolen Products • Plain Numda • Embroidered Numda • Gubba • Chain stitch Potential Investment Areas Muzaffarabad Unit cost per project 2. Wool and cotton or unspun wool is evenly spread over a mat and then rolled and pressed underfoot for felting the felted piece is then milled. 3x4. washing and dying is done indigenously. a cotton yarn is used instead. where the climate is colder. 4x6. Gabba. colorful and inexpensive floor covering and is also used as a mattress. the plain Numdah rug came from Yarkand and was then embroidered in Kashmir. especially girls and women.

28 6. making the object. the second is ‘Naqashi’. painting the surface. pen case work.000 . PAPIER MACHIE A French term so commonly adopted in the East as well as West and meaning “Mashed Paper”. Papier Machie is one of the most popular of crafts practiced in Azad Jammu & Kashmir today. Potential Investment Handicrafts/SME’s Papier Machie Potential Investment Areas Muzaffarabad Unit cost per project 15. long horizontal cases for holding pens. giving it the original local name of the crafts. brushed and ink-pots. The first is ‘Sakhtasazi’. The techniques involved in Papier Machie production are divided into two distinct categories. The first Papier Machie object produced in Kashmir were “Kalamdans”. Kari-Kalamdani.

Precious (Ruby) & Semi Precious stones (Tourmaline etc. 5000/Mining leases may be granted upto 30 years and mining permits upto 10 years. Azad Jammu & Kashmir Minor Mineral Rules. Presently mining sector in Azad Kashmir is. . 1977. AJ&K Regulation of Metaliferous Mines. confined to small scale and contribute less than one percent of GDP. Exploration Licenses/Mining Permits/mining leases are granted with prior approval of Mines Committee / Mines Sub-Committee. Mineral potential can be well utilized for sustainable socioeconomic development of local population in mineral bearing areas. To get the most significant benefits of mineral wealth of AJ&K. Minerals play vital role in economic development. AJ &K Regulation of Coal Mines. 1948. 2007. Initially exploration permits are issued for one year and exploration licences for 1-3 years. Azad Jammu & Kashmir Mines Act. 1994. of Exploration permits & Mining Leases of different minerals. However. The department has issued No. 2007. Coal. Consolidated Mines Rules.29 Mineral Potential of Azad Jammu & Kashmir. Azad Jammu & Kashmir Mining Concession Rules. Conversion fee for exploration licences into mining leases is Rs. Marble. proof of financial capabilities of the applicant and 10 copies of the Topographic map of the area. Bentonite and Dolomite are being mined on small scale . Azad Kashmir has great mineral potential. Exploration licences/exploration permits are converted into mining leases / mining permits on submission of exploration report by the licence holders.).Laws enforced in AJ&K Regulation of Mines & Oil Fields and Mineral Development Federal Control Act. Mostly at present prospection work is being carried out. Procedure for grant of mining concessions (Major Minerals) Applications are received on prescribed proforma alongwith application fee. 25000/. Regulatory Regime .and for exploration permits into mining permits is Rs. Government of Azad Jammu & Kashmir has established a separate Department of Mineral Resources. 2002. however. 2007. With the result different minerals have been discovered. The available geological information provides ample evidence that Azad Kashmir could be blessed with large mineral deposits.

Non-Resident Contractors: o The rate of withholding tax on non-resident contractors engaged in mining operation will be 6% of the gross payments made to them. Zakat:o Non-Muslims and non-resident share holders of a company are exempt from the requirement to pay zakat on dividends.5% but adjustable against final tax liability. Interest: o Interest paid to non-residents in respect of availed approved loans is exempt from withholding tax.in lieu of local levies etc. Minimum Corporate Tax. Withholding Taxes.30 Incentives Available to Mineral Projects -Under National Mineral Policy. Sales Tax: o No sales tax will be levied on minerals which are exported. Protection from expropriation:• The Protection of Economic Reforms Act 1992. .5% of the declared turnover. o 30% for public sector companies o 35% for private or non-resident mining companies. Rate of Corporate Tax. o A minimum amount of corporate tax is payable annually at the rate of 0. Import of Mining Machinery: o Special concessions are given on imports of mining machinery and equipment. This will represent their full final tax liability. the mining sector will equally have this protection. o Withholding tax levied on dividends paid from mining profits to nonresident corporate share holders will be set at 7. provides that no foreign industrial or commercial enterprise established or owned in any form by a foreign or Pakistani investors shall be compulsorily acquired or taken over by the Govt. Royalty:.

PRESECRIBED UNDER THE AZAD JAMMU & KASHMIR MINING CONCESSION RULES. Press M’abad Application For A PROSPECTING LICENCE / MINING LEASE. 2002 1) Name (s) of applicant (s) in Full ________________________________________________________________________________ 2) If application is by an individual:a) Address _________________________________________________________________________________________________ b) Nationality _______________________________________________________________________________________________ c) Occupation _______________________________________________________________________________________________ d) Capital available (enclose Book Certificate showing latest credit balance and other documentary proof) ____________________________________________________________________________________________________________ ____________________________________________________________________________________________________________ 3) If application is by partnership or firm:a) Principal place of business ___________________________________________________________________________________ b) If principal place of business is outside Azad Kashmir/ Pakistan name and address of duly authorized agent in Azad Kashmir Pakistan ___________________________________________________________________________________________________________ c) Capital available (enclose book certificate showing latest credit balance and other document proof) ______________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________ d) Main business of application (s) (enclose a certificate copy or partnership deed and registration certificate issued by registrar of Firms). ______________________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ Name of Partners (1) (2) (3) (4) (5) (6) 4) Nationality Share & amount contributed __________________________________________________________________________ __________________________________________________________________________ _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ If application is by a company:a) Principal place of business ______________________________________________________________________________________________________________________ b) If Principal place is outside Azad Kashmir/ Pakistan name and address of duly authorized agent Azad Kashmir / Pakistan ______________________________________________________________________________________________ c) Nature of business ____________________________________________________________________________________________________ d) Authorized subscribed and paid up Capital (enclose Book Certificates showing latest credit balance and certified copies of Memorandum of Association and Certificate of incorporation) . M-1) 1000F Govt.31 (Form No.

of the State of Jammu and Kashmir. Phone No. Note).05822-920045 . appropriate Revenue record. State full particulars of the company to be incorporated by the application in Pakistan for the purposes of receiving the grant of any license or lease which may be granted including particulars similar to those specified in 4 (d) (e) (f) and 11 above and the amount of the capital proposed ___________________________________________________________________________________________ (Documentary evidence of incorporation of the company in Azad Kashmir / Pakistan should be furnished along-with a copy of Memorandum an Articles of Association and prospectus of the company as soon as the company has been incorporated in Azad Kashmir / Pakistan. A/We hereby undertake to reserve the amount of credit balance certified by the Bank as my / our capital exclusively for investment on works connected with the license or lease applied. I/We hereby solemnly declare that event of Government me us the required License / Lease. sketch of the area and topographic map 1” to a mile with geographic bearing must accompany) _____________________________________________________________________________ Brief particulars of previous experience in mining giving details of prospecting licenses or mining leases or both already held or applied for in or outside Azad Kashmir / Pakistan______________________________________________________________________________________________________________________________ Name and qualification of technical experts or advisers who have prepared or certified the Exploitation Scheme and will be available for supervision (enclose two of copies of the Exploitation Scheme prepared or certified by Expert) ________________________________________________________________________________ State amount of capital for operations under the license or lease applied for:a) at present available ______________________________________________________________________________________________________________ b) Which application make available and the source. and (b) Rs. I f the application is an alien or a company incorporated outside Azad Kashmir / Pakistan. Application fee should be deposited in advance in any Government treasury in Azad Kashmir under the head “XXXII-Industries-Mineral receipts arising out of Mines and Oil Fields and Mineral Development (Federal Control) Act. 30 per mineral for the first 400 acres and rupees 10 for each additional 400 acres or part thereof in case of prospecting license. which should be addressed to the Director Mineral Resources. shall be decided in accordance with Rule 74 Azad Jammu & Kashmir Mining Concession Rules 1977 and the appropriate clause in the license / lease. A receipt copy of the chalan should accompany the applicant. 10) 11) 12) 13) 14) FOR FURTHER DETAIL PLEASE CONTACT Directorate of Mineral Resources Govt. 1948. Muzaffarabad. Azad Govt.32 e) Name of Districts f) Name of Principal Nationality Nationality Amount of shares hold 5) 6) 7) 8) 9) Share –holders By share holders State mineral or group of minerals for which prospecting license or mining lease is required ________________________________________________________________________________________________________________________________ State whether a prospecting license or a mining lease is required ____________________________________________________________________________ Period for which license is required ____________________________________________________________________________________________________ Situation and size of the area for which application is made (the name of village. ____________________________________________________________________________________________________________________________________ ((Please give Bank reference or some documentary proof in support of your statement). ___________________________________________________________________________________________________________________________________ Any special remarks _________________________________________________________________________________________________________________ I/We hereby declare that all the foregoing particulars are correct. Signature (s) of Application (s) __________________________ Date ____________________ The applicant is a company State capacity in which form is signed. Khasra Numbers. Other receipts at the rate of (a) Rs. 60 mineral in case of mining lease. In the Event of any violation of this undertake by me / us the Government shall have the right to cancel the license / lease provided that any dispute as to whether any of my / our activities can be considered as a violation of this undertaking. I/We will abstain from all political activity / activities what so ever affecting the sovereignty of Azad Kashmir / Pakistan or such as may be tantamount to interference in its internal affairs and that i/We will eschew all espionage. of Azad Jammu and Kashmir Muzaffarabad. Tehsil and district.

500 02.000 05.000 02.000 04.000 05.065 0.000 02.000 07.000 100.000 01.000 0.000 08.& Kotli.000 Total Reserves (Million Tons) 45 million grams 01. The Corporation soon after its creation started mineral exploration & evaluation activities in the state which are continued till now. whereas gemstones are confined to metamorphic terrain and thus occur in the upper parts of Neelum Valley. 01. precious Metals and Base Metals.000 14. was established in 1971 under Act XVII. Limonite. Muzaffarabad & Hattian Bauxite – Kotli Fireclay – Kotli Quartzite . The geological environment of AJK is comprised of three types of rocks.000 15.000 10 11 12 13 05.000 34.00 9 Gypsum. Gemstones. Sr.000 05.000 1 2 3 4 5 6 0. graphite. Sedimentary.000 00.000 04.000 01.065 7 Coal .000 30.000 07. 70 million. The Industrial minerals and base metals are found in all the three rock type and thus spread in the whole of the AJK territory.000 29. The most economically promising mineral deposits are ruby. Igneous and Metamorphic.000 Probable Reserves (Million Tons) 05. bentonite.Muzaffarabad.Mirpur & Bhimber Granite Marble .000 .500 07. i. Neelum & Kotli.e.000 8 Lime Stone – Muzaffarabad 70.000 15.000 0.000 01.Muzaffarabad Proved Reserves (Million Tons) 40 million grams 01. granites & cement materials and AKMIDC prepared comprehensive studies of these deposits.33 INVESTMENT OPPORTUNITY IN AJK MINERAL SECTOR Azad Kashmir Mineral & Industrial Development Corporation (AKMIDC). a state enterprise of the Govt of AJ&K.Kotli Pozzollana – Kahuta 4.000 00. The worth of proven mineral deposits is more than Rs.000 30.000 19.No Name of Mineral & Location District Ruby – Neelum Graphite – Neelum Bentonite . The type of mineral deposits found are.Muzaffarabad. Industrial Minerals.

J/5. The Kel is about 160 Kilometers north east of Muzaffarabad.43. this stone have been introduced in the World market as “Kashmir Ruby “ by participating in the international gem shows held at Tucson. Kel is linked with Muzaffarabad by partially metal road open for about 8/9 months. . whereas onwards by a fair weather road open 5 to 6 months. Recently ruby has been discovered in the vicinity area of Chitta Katha and on the basis of preliminary exploration during 2005 and 2006 a similar deposit to Nangimali is expected. and in the gem markets of Thailand. Reserve Potential 40 million grams of ruby potential has been assessed in Nangimali area. with very high ( about 40 times than Nangimali) per cubic meter recovery of ruby. EXPLOITATION OF RUBY DEPOSITS OF AZAD KASHMIR Location The Ruby deposits of Azad Jammu & Kashmir are found at Nangimali area of Upper Neelum Valley. Market Studies With the technical and financial assistance of UNDP. Switzerland and UK. The area falls in Survey of Pakistan Topo sheet No. USA. Accessibility Nangimali is about 25 km from Kel.34 MINERAL DEPOSITS WITH COMPLETE STUDIES & READY FOR EXPLOITATION FEASIBILITY 1. These promotional activities established “Kashmir Ruby” as highly desirable unique gemstone of the world.

The area falls in Survey of Pakistan Toposheet No.35 Feasibility Comprehensive Feasibility Study for Commercial exploitation of Nangimali Ruby Deposits has been prepared in 2003. Tarli Domel and Mohriwali areas are about 6 km. The Kel is about 160 kilometers north east of Muzaffarabad. Kel is linked with Muzaffarabad by partially metalled road open for about 8/9 months. 2. ESTABLISHMENT OF GRAPHITE PROCESSING PLANT Location The graphite deposits are found in Bagnaunwali Seri. In the said feasibility study total investment required was Rs.. 112 million. Bagnaunwali Seri (0. processing & marketing was prepared in 1989. The Study envisages annual production of 300 kgs production after 2 years mine development. 67.3 m ton).6 m ton) and Mohriwali (0.43-F/7. Accessibility Bagnaunwali Seri. Feasibility A comprehensive feasibility study covering mining. whereas onwards by a fair weather road open 5 to 7 months. 13 km and 35 km from Kel respectively.00 millions which needs to be updated. Accessibility The limestone and shale deposits of Batmang area are located on all weather metalled (Neelum valley) road at a distance of about 4 km North of Muzaffarabad. Reserve Potential A total of one million ton proved reserves of graphite are present at all threelocalities i.e.1 m tone). The area falls in Survey of Pakistan Toposheet No. 3 ESTABLISHMENT OF CEMENT MANUFACTURING PLANT AROUND MUZAFFARABAD Location The limestone / Shales and Gypsum (Cementious material) bearing areas are located within 10 km2 radius around Muzaffarabad town. Tarli Domel and Mohriwali areas of Upper Neelum Valley.43-J/5 & I / 8. Tarli Domel (0. . The graphite at first two localities is foundry grade whereas last one is crucible grade. Total investment is estimated to be Rs.

Tentative investment required for establishing a cement plant with 2000 ton / day capacity is Rs. To mine and process 25 tonnes of bentonite per day Rs 93.00 billion.00 millions will be required as per estimates prepared in 2006. Reserve Potential About 100 million tones reserves of limestone / shales and four million tones of gypsum are present. size and location of plant etc. marketing. The Dudial town can be approached at a distance of 65 kms from Mirpur along MirpurChakswari road and 85 kms from Rawalpindi via Kalar Sayyadan-Dan Gali road.K. District Mirpur and fall in Survey of Pakistan Topographic Sheet No.36 The deposits of gypsum are located at Sherwan.43-G/11. Feasibility Preliminary feasibility study covering reserve potential and suitability of material for cement manufacture is available. 3. USA. Market Studies Presently activated fullers earth is being produced in the country and is also imported from West Germany. Shawai. Different studies including costs. . Balok Bhana and Thangar area about 2 to 4 km Northwest of Muzaffarabad and are easily accessible with all weather roads. ESTABLISHMENT OF BENTONITE PROCESSING PLANT Location The Bentonite deposit of Sadiqabad-Kathar is located near Dudial. Accessibility The Mirpur town is the District headquarter and lies about 120 kms from Rawalpindi and connected through the grand truck road via Dina and Mangla. Feasibility A Comprehensive Feasibility Study for Commercial exploitation of Dudial bentonite and establishment of Fullers earth plant is available. Malaysia and Indonesia to meet the shortfall in demand. are to be done. Reserve Potential Four million tones proved reserves of bentonite are found in Dudial area. China. U. 4.

Upper reaches of major streams passing through the granitic terrain are accessible by fair weather truckable roads. Kensi Area Kensi is located at 95 kilometers north east of Muzaffarabad.Neelum valley road. thickness and workable depth.14. . Keran Granite Keran is located at about 90 kilometers from Muzaffarabad. The granite deposits lie on main Neelum valley road.15 & 43 / J1 &9. Khawaja Seri Area Khawaja Seri is located at about 150 kilometers North east of Muzaffarabad on Kel.The area can be approached through Neelum valley road. They are intermittently exposed at different topographic levels indicating them as a part of the same mass underneath. The area falls in survey of Pakistan toposheet Nos 43 / F 10. POLISHING PLANTS IN NEELUM AND MUZAFFARABAD DISTRICTS Location and Accessibility The Marble & Granitic terrain lies towards NE of Muzaffarabad town. QUARRY DEVELOPMENT & ESTABLISHMENT OF GRANITE / MARBLE CUTTING. The first 70 kilometers are on main Neelum valley road and the rest 25 kilometers on Kundalshahi – Jagran road. The dolerite (black coloured) deposit is about 1 to 1. The tentative calculated reserves are about 100 million tons on the basis of exposed length. The tentative calculated reserves are about 289 million tons on the basis of exposed length. The rock is less jointed and the size of the block extracted for cutting and polishing purposes is exceptionally of good size and grade. In this area total of three dolerite bodies of different sizes have been located.37 5. thickness and workable depth. The quartzite is silver grey coloured and reserves are more than 150 million tons. The granite is grey coloured having extensive reserves.5 kilometers off the main road.

Box #8. Tentatively Rs. Fax: 05822-921576 . This has been indicated a potential target.O. AZAD KASHMIR MINRAL & INDUSTRIAL DEVELOPMENT CORPORATION Near Abbass Institute of Medical Science Ambor. The material is unique and highly desirable in the local & international markets. The tentative calculated reserves are about 157 million tons on the basis of exposed length. The lowest level so far located is at 2500m ASL in Pathra baihk that passes up to Sarsangar Gali at 3130m ASL. The numerous occurrences and their lateral extension indicate huge reserves. P. Muzaffarabad. thickness and workable depth. 250 to 300 million will be required for quarry development and cutting / polishing plants. A total of eight dolerite bodies of different sizes have been marked between Harla to Trakana baihks in Chugian Nala and onwards to eastern slopes of Sarsangar gali. Feasibility Comprehensive geological studies are underway and on its completion a mining feasibility study for commercial exploitation of these deposits shall be prepared. The first 30 kilometers are on main Neelum valley road and the rest 20 kilometers on fair weather 4 X 4 truck able road. 921580. 921578. The dolerite deposit is black in colour with tentative reserves of one million ton Chugian Nala Chugian is located about at about 50 kilometers north east of Muzaffarabad. This is very promising area having several dolerite (jet black) and light whitish grey granite deposits. They are intermittently exposed in a 3 km long belt at different topographic levels indicating them as a part of the same mass underneath. Azad Kashmir PH: 05822-921577. The first 60 kilometers (up to Jura) are on main Neelum valley road and the rest 5 kilometers on fair weather 4X 4 truckable road.38 Chaijwa Nala The Chaijwa village is located at about 65 kilometers north east of Muzaffarabad. The grey granite found in the area is fine grained. Market Studies About 60 tons of granite samples (grey & black) from various deposits were cut and polished. less jointed and large size blocks can be extracted for cutting & polishing.

turbulent foaming streams. The picturesque beauty of its valleys. The area is full with variety of landscapes. historical & cultural heritage. winding rivers. Tourism in Azad Jammu & Kashmir: Azad Kashmir is bestowed by nature with exquisite natural beauty and has great potential for development of tourism. tourism can be described as the other main resource. the famous Kashmiri handicrafts. The beautiful wood work. Tourism industry may promote a better image of the country and thereby enable it to achieve other objectives. majestic towering mountains. holistic shrines & festivals and diversity of flora and fauna all go together to make it an excellent tourist resort. In Azad Jammu & Kashmir potential-wise. Hiking and tracking sites. Tourism is a growth industry and grows faster than most other exports oriented industries. Besides other benefits. Tourism can be an instrument of a process of transferring wealth from richer parts to the poorer parts of the country and securing a more equitable distribution of wealth. after hydro power. dense forests. . trout fishing in the frozen waters of the Neelum River and the remains of the Buddhist civilization in the Sharda Valley are other areas of tourist attraction. It has proved its effectiveness in economic uplift as well as in introducing historical and traditional heritages. bracing climate.39 TOURISM IN AZAD JAMMU & KASHMIR Tourism has established as an itself important in the industry world..

Moreover. EMS (Emergency Medical Services). which is profoundly different from the rest of the SubContinent. The State of Azad Jammu & Kashmir contributes a distinctive cultural entity developed by its people. The custom rich and traditional society of AJK is also a subject of anthropological value. skiing. music. dress. EMS (Emergency Medical Services). traditions. Fire Fighting. Power Line Survey. The heli service may be expensive but is likely to grow in popularity. which is the largest service provider. heli service could also be used for other official purposes as well for SAR (Search And Rescue). especially proven services rendered by the helicopter during the disastrous earthquake of 2005. Power Line Survey. jewelry. There are keen adventure enthusiasts would like to travel to inaccessable mountain peaks for trekking. could tag convenience with a sense of adventure as well as pack in the utility of quick travel. A. This is why the people of Azad Jammu & Kashmir have developed into a persistent hard-working. ENG (Eloctronic News Gathering) missions etc. Besides connecting the remotest places to the centre. . non aggressive race which leads a simple & frugal life. helicopters can perform SAR (Search And Rescue). Law Enforcement.40 traditional Kashmiri foods and above all a clean and pristine environment presents other areas of delight for the tourists on this ‘heaven on earth’. handicrafts and performing arts all are windows to their character. the joys of chopper rides might be a lot more accessible than the vicarious pleasure of seeing a screen. ENG (Eloctronic News Gathering) missions etc. Law Enforcement. Besides. to enable tourists to travel from one destination to another with the double benefit of cutting down on travel time while enjoying a bird’s eye-view of the unique beauty of nature. Its mountain terrain and wide valleys decanted harsh terms on the development of its culture. paragliding and bunjee jumping etc.HELI-TOURISM: The Heli-Tourism product is a new initiative world-wide. Their dances. Fire Fighting. heli tourism services to popular destinations. In Azad Jammu & Kashmir. the vertical lift technology of helicopters has far more utilitarian aspects to its credit than only being an effective mode of transport. For those who can pay.

BChairlifts/ Cable Cars: Chairlifts & Cable Cars are considered to be very popular mode of recreation.335 Meters And Already Has A Tourist Lodge. In this regard. East of Muzaffarabad City Some 27 Kilometers away approachable by a Black Top Road. Specifications of the Helicopters and terms & conditions can be obtained from office of the Director General AJK Tourism & Archaeology. Survey & Feasibility Study has been carried out through a reputed expert Firm. giving impetus to Heli-Tourism and helicopter services to areas not serviceable by fixed wing aircraft is the main theme of the project. Saran Has An Altitude Of 2. Bids/ Offers are invited from reputed organizations for the long term Heli-Tourism operations. AJK Tourism Department intends to establish HeliTourism in AJK through Public–Private Partnership. which is planned for Improvement of accessibility in AJK and regions of potential tourist areas.41 The Govt. Azad Jammu & Kashmir has many beautiful places which due to their locations. decided in principle to setup a heli-service for tourist operations as well as multiple purposes. which are not connected by roads. altitude varying from 5000 Ft to 8500 Ft above sea level. In this regard. Pir Chinassi has . enchanting surroundings and aesthetic atmosphere have great potential for installation of Chairlifts & Cable Cars etc. Installation of such devices will not only provide linkage between adjacent tourist spots but also create additional recreational facilities to the locals and visitors besides enhancing the tourist potential and economic development of the areas. of AJK taking all these aspects into consideration. The Consultant Firm has recommended that installation of chairlift/ cable cars in between Saran-Pirchinassi is a most feasible project with the following submissions: SITE POTENTIAL Saran – Pir Chinassi Project is Located in Muzaffarabad District. Promoting arrivals to the destinations of interest by creating hub & spoke operations. Muzaffarabad.

00 82.00 3.20 MINUTES CAPITAL COST ESTIMATES The cost is subject to changes in the cost of equipment.0 million @ Rs. natural beauty of the area and the tomb of Shah Hussain Bukhari make this site the premier location for the installation of cable car system.0 KM 500.924 meters and tomb pir shah hussain bukhari is situated at the top of Pir Chinassi peak. Rupee –Euro exchange rate and general inflation and should be taken only as a notional figure.00 18.42 an altitude of 2.00 Rs.Saran/ Pir Chinassi Ins. Millions) 690. @ 2% Construction (Pylons + Stations) Total = 1000. The proximity to the capital city.00 .00 207. SYSTEM TECHNICAL DETAILS SYSTEM 8 MGD (8 PERSON MONO-CABLE DETACHABLE GONDOLA) CAPACITY NUMBER OF PARS/CABIN SPEED LOCATION OF DRIVE LOCATION OF RETURN LENGTH HEIGHT DIFFERENCE NUMBER OF CABINS TRIP TIME 1000 PERSONS \ HOUR 8 PERS 5 METERS \ SECOND STATION I (Saran Area) STATION 2 (Pirchinassi Top) 2. SUMMARY OF CAPITAL COST ESTIMATION SUMMARY OF CAPITAL COST ESTIMATION Item Cost of Ropeway System (Euro 6.800 M 19 NOS 15 .115) Taxes @ 30% Freight (Karachi .

As a result of these investigations a number of sites have been identified. that offers attractive prospects. The study area comprised of a part of Jhelum river basin. meteorology and hydrology is blessed with abundant hydropower potential. potential of about 7000 MW has been identified in the three major river catchments and their tributaries in Azad Jammu & Kashmir. identified potential sites and gave recommendations for further detailed studies on sites ranked to be most viable. ⇒ To rank the identified projects for development in order of priority both for national and local power needs.43 HYDRO POWER GENERATION The State of Azad Jammu & Kashmir by virtue of its topography. which lies within the territory of Azad Jammu & Kashmir The study conducted preliminary investigations. According to preliminary estimates. A comprehensive planning of the hydropower resources of the State has been carried out by WAPDA in collaboration with international agencies for carrying out the comprehensive planning of available hydropower resources with the following objectives:⇒ To assess the total hydropower potential of the rivers/streams available to meet the national power demand and the local demand in isolated system. Important features of these project sites are: ⇒ Early rising characteristics during lean periods when output from other hydropower stations are low. . upstream of Mangla reservoir.

the Govt. ⇒ Project locations in close proximity to urban load centers. and power systems. Geology. whereas. Peaceful. Hydrology. . total demand of electricity of AJK is about 400 MW.6 MW. The following projects are ready for investment. Availability of construction material and skilled/ unskilled labor. ⇒ High annual plant that insures reliable supply for most part of the year. of AK. law abiding populace with no ethnic or law/ order problems. Low construction cost of power station. AZAD JAMMU & KASHMIR HYDRO ELECTRIC BOARD The Govt. Public sector projects are implemented by Managing Director Hydro Electric Board. which would increase upto 700 MW 2015. In 1989. Availability of reliable and credible data on Topography.44 ⇒ Run-off-river schemes that dispense with large storage reservoirs causing environmental imbalances. Major advantages in exploiting hydropower potential of AJK are:• • • • • • Convenience of interconnection with major high voltage grid network of WAPDA. of AJK has assigned top priority to the exploitation implementation and development of hydropower projects in the territory and . Risk free environment. of AJK established Hydro Electric Board to plan and to undertake development of identified hydro potential.has constituted Hydro Electric Board for the development of hydel potential in AJK. Seismology. Low cost of transmission/ dispatch. It has so far completed 07 projects having total installed capacity of 37. ⇒ A favorable topography that supports high head hydropower projects that utilized simple technology. Private sector projects are coordinated/processed by Director General Private Power Cell under the Administrative Control of Secretary Electricity/HEB/PPC of Govt. At present.

104 332.45 S. 1800.00 THE POWER POLICY 2002 PROVIDES THE FOLLOWING INCENTIVES FOR INVESTORS IN PRIVATE SECTOR. 9500.929 91. 31600. b) Permission to issue shares at discounted prices to enable venture capitalists to be provided higher rates of return proportionate to the risk.00 Rs. Project Gulpur JagranJI Jhing Kotli Chakothi Total Capacity MW 60.414 76.No NAME OF PROJECTS DOWARIAN LUAT NAGDAR SHOUNTER JANAWAHI TAOBUT Total CAPACITY (MW) 40 49 35 48 12 10 194 1 2 3 4 5 6 ESTIMATED COST (MUS$) 54.00 Rs. 4600. d) Non-residents are allowed to purchase securities issued by Pakistani companies without the State Bank of Pakistan's permissions and subject to the prescribed rules and regulations.00 Rs. .00 Rs.00 Rs.00 43. 11500.1. c) Permission for foreign.355 66.5 100 131 342 Estimated Cost (in Million) Rs.553 22. bank to underwrite the issue of shares and bonds by the private power companies to the extant allowed under the laws of Pakistan.5 7.115 The plan of the following Hydro Power stations has been approved by the planning commission of Pakistan. FINANCIAL REGIME a) Permission for power generation companies to issue registered bonds. 6000.76 20.

as the same will be used in production of taxable electricity. PRIVATE SECTOR PARTICIPATION. Repatriation of equity alongwith dividends is freely allowed. In view of the financial constraints. Maximum indigenization shall be promoted in accordance with GOP policy. FISCAL REGIME. 2. a. can play an effective role in the development of hydropower projects in AJK. e. it has been well realized that private sector 3. d. Exemption is already available from income tax including turnover rate tax and withholding tax on imports. which provides guidelines for participation of private sector in the development of hydropower projects. subject to the prescribed rules and regulations. has also been adopted in AJK. GOP approval may be required in accordance with such regulations. f) Independent rating agencies are operating in Pakistan to facilitate investors in making informed division about the risk and profitability of the project company's Bonds/TFCs. HEB/Private Power Cell encourage response from the investors and Letters of Intent (LOI)/Letters of Support (LOS) for these projects to investors to promote development in this sector. c. in accordance with regulations applicable to industry in general. Parties may raise local and foreign finance. provided that no exemption of income tax on oil-fired power plants. . Foreign private investment would be a break through in the development of hydel sector in AJK and would also lead to social-economic uplift of the region. Customs duty at the rate of 5% on the import of plant and equipment not manufactured locally. No levy of sales tax on such plant. b.of 5% limit on investment of equity in associated undertakings. machinery and equipment.46 e) Abolition. f. A policy framework of the Government of Pakistan.

Name of Project Dowarian Hydro Power Project 2./KWh) Detailed Feasibility Study (Available) 8.414 76.553 22.355 66.83GWh . No.47 POTENTIAL HYDRO POWER PROJECTS FOR INVESTMENT S.484 (Rs. Project financial IRR 14.No NAME OF PROJECTS CAPACITY (MW) 40 49 35 48 12 10 194 ESTIMATED COST (MUS$) 54. Design discharge 6.929 91.91 % 4. Location 3. Plant factor 10. Gross Head 5. Capacity 4. Status Located on Dowarian nallah (District Neelum) about 97Km from Muzaffarabad 40 MW 510m 9. Generation Voltage 11.US$) 39.76 20. Annual Energy generated 170.414 (M.74 % 18. Project Investment Cost 12. Project Economical IRR 13.115 1 2 3 4 5 6 DOWARIAN LUAT NAGDAR SHOUNTER JANAWAHI TAOBUT Total TECHNICAL & FINANCIAL PARAMETERS 40 MW DOWARIAN HPP 1. Unit Cost 15.77 % 11 KV 54.104 332.97 m3/s 04 (Pelton turbines) 48. of units 9. Mean annual flow 7.6 m3/s 5.

of units Annual Energy generated Plant factor Generation Voltage Project Investment Cost Project Economical IRR Project financial IRR Unit Cost Status Nagdar Hydro Power Project On the right bank of Nagdar Nullah about 92 Km from Muzaffarabad 35 MW 470 m 09 m3/s 5. 6. 14. Capacity Gross Head Design discharge Mean annual flow No. 8.78 % 14. 13.355 (M. Location 3.6m3/s 6. Status . 11. 4.48 TECHNICAL & FINANCIAL PARAMETERS 49 MW LUAT HPP 1.30 % 6.90m3/s 04 (Pelton turbines) 214. 7.US$) 27.64 % 11 KV 66./KWh) Detailed Feasibility Study (Available) TECHNICAL & FINANCIAL PARAMETERS 35 MW NAGDAR HPP 1.05GWh 47. 6. Name of Project 2.01% 5. 10. Name of Project 2. of units Annual Energy generated Plant factor Generation Voltage Project Investment Cost Project Economical IRR Project financial IRR Unit Cost Luat Hydro Power Project On the right bank of Chutiari Nallah (District Neelum) about 95Km from Muzaffarabad 49 MW 618m 9. 14. 4. 10.929 (M.9% 11KV 76. 9. 15. 5. Location 3.68% 17.44 m3/s 04 (Pelton turbines) 146. Capacity Gross Head Design discharge Mean annual flow No. 5. 7./KWh) Detailed Feasibility Study (Available) 15.107 (Rs.US$) 34. 9. 8. 11. 12. 13. 12.13GWh 49.496(Rs.

73 GWh 12. Design discharge 6. Project financial IRR 14.9 % 11 KV 20.951(Rs. Location 3. Name of Project 2. Generation Voltage 11.00 % . Unit Cost 15.079 (Rs.49 TECHNICAL & FINANCIAL PARAMETERS 48 MW SHOUNTER HPP 1. of units 9. Project Investment Cost 13. No. Gross Head 5. Project Investment Cost 12. Status Janawahi Hydro Power Project Proposed on Baral river 12 MW 400 m 3. Gross Head 5. Location 3.39 % 5. Plant factor 10. Generation Voltage 11. Capacity 4./KWh) Detailed Feasibility Study (Available) 8.760 (M.US$) 27.03 m3/s 04 (Francis turbines) 48. Plant factor 10. Project financial IRR 14. Project Economical IRR 13.29 m3/s 03 (Pelton turbines) 49.75 % 11 KV 91.60 m3/s 3. Unit Cost 15.85GWh 8. of units 9.56 % 14./KWh) Detailed Feasibility Study (Available) TECHNICAL & FINANCIAL PARAMETERS 12 MW JANAWAHI HPP 1. Mean annual flow 7. Design discharge 6. No.US$) 13. Name of Project 2. Project Economical IRR 21. Status Shounter Hydro Power Project Proposed on Baral river 48 MW 132 m 50 m3/s 33. Annual Energy generated 51. Mean annual flow 7.553 (M. Annual Energy generated 223. Capacity 4.42 % 7.

/KWh) Detailed Feasibility Study (Available) NAME OF PROJECTS CAPACITY (MW) Project Investment COST (MUS$) JAGRAN-IV 24 42.00 Total 54 87.54 % 8.00 CHANGAN 9. Gross Head 5.84 % 11. Unit Cost 15. Generation Voltage 11. Design discharge 6.608 (Rs. of units 8. Mean annual flow 7. Location 3.0 m3/s 12.45 m3/s 04 (Francis turbines) 47.US$) 16. Annual Energy generated 9. Capacity 4. Name of Project Taobut Hydro Power Project 2. Plant factor 10.68 GWh 52. Project Economical IRR 13.0 17. No. Project financial IRR 14.0 m 20. Project Investment Cost 12.50 TECHNICAL & FINANCIAL PARAMETERS 10 MW TAOBUT HPP 1.8 % 11 KV 22.104 (M. Status Proposed on Gagai river 10 MW 66.00 .00 HARIYOLA-ZAMINABAD 21 28.

US$) 12. of units 9. 5.091 (Rs. 6.49 % 6.20 GWh 11. 6./KWh) Detailed Feasibility Study Completed PROJECT PROFILE 9 MW CHANGAN .26 % 6. Location 3.000 (M. Project Economical IRR 29.0MW 156 m 18 m3/s 15.50 % 13. Generation Voltage 11. Status 15. 2.51 PROJECT PROFILE 22 MW JAGRAN-IV 1. 4.25 % 11 KV 7. Project Investment Cost 42. Project Economical IRR 25.II 1.000 (M. Capacity Gross Head Design discharge Mean annual flow Jagran-IV Hydro Power Project Located on Jagran river about 86 Km from Muzaffarabad 22. Plant factor 10.0m3/s 1. 5.II Hydro Power Project Located on Changan nullah about 103Km from Muzaffarabad 9.46GWh 10.79 m3/s 03(Pelton turbines) 48.080 (Rs. 4./KWh) Detailed Feasibility Study Completed . Generation Voltage 8. Project financial IRR 14.59 m3/s 04(Francis turbines) 51. 7.33 % 13. Name of Project 2. Project Investment Cost 17. Project financial IRR 14. 8. Status 14.0MW 360m 3. 3. No. Unit Cost 15. Unit Cost 15.US$) 12.9 % 11 KV Annual Energy generated 38. Name of Project Location Capacity Gross Head Design discharge Mean annual flow No. of units Plant factor Changan . 9. Annual Energy generated 98.

20m3/s Mean annual flow 3. 8.71 m3/s No. 11. 6.85 % Project financial IRR 14. 12. of units 04(Pelton turbines) Annual Energy generated 75. 10.0MW Gross Head 366m Design discharge 5.399 (Rs. 9. Location 3.56 % Unit Cost 6. Name of Project Hariyola-Zaminabad Hydro Power Project 2. 4. 5. Fax No.US$) Project Economical IRR 24. 13. Phone No.000 (M.48 GWh Plant factor 61. 05822-921064 05822-921063 . Located on Agar nullah about 20 Km south of Muzaffarabad Capacity 14.52 PROJECT PROFILE 14 MW HARIYOLA-ZAMINABAD 1. 15.6 % Generation Voltage 11 KV Project Investment Cost 28. 7./KWh) Status Detailed Feasibility Study Completed FOR FURTHER DETAIL PLEASE CONTACT Azad Jammu and Kashmir AJK Hydro Electric Board B-36 Upper Chatter Housing Scheme Muzaffarabad. 14.