Jharkhand: An Overview

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Nov 8, 2013 (3 years and 7 months ago)

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1

Jharkhand: An

Overview

Jharkhand the 28
th

state of the Indian Union is best kno
wn for its rich mineral wealth
. This wealth over a
century ago gave

the

state the

unique advantage of being the birthplace of the Indian Industry. It is today
one of the most at
tractive investment destinations because of this natural wealth
,

coupled with its skilled
and industr
ious people, low cost of living
, great industrial clima
te and its locational advantage
.

Since its
creation
,

the state has set in place a range of enablers
for investment
. T
oday with its investment friendly
climate and expertise in geology,

min
ing and immense power potential,
Jharkhand has the potential to
become the most financially viable state in the country.



JHARKHAND FACT FILE



Area: 79,914 sq km



Popul
ation: 32.96 Million



Capital: Ranchi



Literacy: 67.63 per cent



Religion: Hinduism, Islam, Christianity, Sarna, Jainism etc.



Languages: Hindi, English, Regional Languages (Mundari, Nagpuria, Kharia, Ho, Santhali, Oraon,
Khortha), Bengali, Urdu, Oriya



Tempera
ture: Summer (Min27 C, Maximum 42 C)
;
Winter (Min 4 C,Max 20 C)



Major Industries: Iron & Steel, Alumina, Coal, Heavy Engineering, Automobile, Engineering Goods

Source: Government of Jharkhand

Major Highlights of
the state



Three times g
rowth in the Gross D
omestic Product (
GSDP)

has been achieved during the last ten years
(2001
-
2011)
.



Over 2
0

per cent

of the
country’s total steel is being
produced in the state.

Stee
l production has
increased from 8 million tones to over 12 million tones per annum during the
11
th

plan period.



17
,
000
mega watt (
MW
) power capacity is being installed by private i
nvestors.

The
S
tate is poised to
attain self sufficiency in power and become a net exporter of energy by 2012
-
13.




Several thermal power p
lant
s

are in various stage of co
nstruction

in the state such as

Maithan Power
Limited at Dhanbad (2x525 MW)

Page :
2



Manufacturing accounts for 27 per

cent of the
GSDP (as compared to only 17 per

cent for all India in
2004)
.




Jh
arkhand has the second largest a
uto
ancillary

Hub in Asia
.




Sericultu
re has
seen

phenomenal growth in
t
he state
. Jharkhand

ranks first in the production of Tasar
silk in the country.

In fact,
1000

metric tons (MT) of Tasar s
ilk has been achieved
,

as against country’s
1400
MT

p
roduction
,

and approximately

two

lak
h
employment
s

has been generated

by the state
.



It has
the country’s
40 per cent

mineral
reserves with mining
and
quarrying accounting

for
14.3
per cent

of the GSDP (as compared to 2.3 per

cent for the rest of
India)
.



The state saw 0.5 per cent
increase in forest cover
,

which only four states of the country have achieved

over the reporting period 2007
-
09.

This
is attributed to community participation in forest protection.

Key Industries

The state has several large engineering and m
ining Industries such as Central Coal F
ields Limited, Heavy
Engineering Corporation
, Usha

Martin

and

TATA Motors.

A number of heavy engineering companies located in the state produce equipment
s

and provide
turnkey

and consulting services to the existing metal and mining industry.

The state also

has an expanding
automotive i
ndustry
,

which includes
original equipment manufacturers as well as
a
uto component
production units. Some of the companies in these sectors include
TATA Steel, TATA Motors, METALSA, JMT
Auto, etc.

Infrastructure Status

Land av
ailability

The state of Jharkhand spreads over
79.70
l
akh
h
ect,
and has a vast resource of
natural resources. Of
the
total area, over
38.00
l
akh
h
ect
is available for cultivation, while f
orests and woodlands occupy more than
29 per cent of the
land
which i
s amongst the highest in India.

The barren land available in the state is utilized for seeting up industries in the state. The Government of
Jharkhand has a number of policies to allocate land for industrial purposes to entrepreneurs. Moreover, the
State
also provides assistance to entrepreneurs in acquiring land within the state growth centres.


Also, the State

Government
provides
land
within
specific industrial areas and growth center.
Some of the
noticeable growth centres in Jharkhand are the
Barhi Gro
wth Center
, with
350 acre land available for
development
, Getalsud Ranchi mega food park with
60 acres
land, Khunti Knowledge city with
600 acres

of
land and
300 acres in Devipur Industrial Area near Deoghar which are ready areas for investment.



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3

Physic
al infrastructure

The State of Jharkhand also possess a well developed rail and road network. The State capital ranchi is well
connected to other metros such as
Delhi, Kolkata
, Mumbai
,
Banglore, Ahmedabad
and Patna

through

regular air services.
Among other

prominent features of the physical infrastructure of the state:



Ranchi Airport, and 5 other airports at Dumka, Deoghar, Jamshedpur, Bokaro Dhanbad are being
upgraded.



4 laning o
f NH 33 between Barhi
-
Hazaribag

Ranchi
-
Mahulia is in progress.



The State Gove
rnment has allotted 12 per cent of the plan expenditure for the road sector.
Road
construction
department, GoJ

an
d

IL& FS h
ave

mutually set up a
n accelerated r
oad construction
company
f
or improving 1
,
500 km of the state on annuity basis.

The State Governme
nt has already
set up several
other schemes
to enhance the road network in the state.



Work on providing Rai
l connectivity between Koderma
-
Hazaribag
-
Ranchi
, Koderma
-
Giridih
,
D
eoghar
-
Dumka
, Barhi
-
Hazaribag and Tori
-
Lohardaga has already been taken up.



Exten
sive goods handling facilities are available at Ranchi
, Bokaro, Dhanbad and

Jamshedpur.




The state Government

has taken steps to set up an ai
r cargo Complex at Ranchi to give boost to
exports.



Development of
Inland Container Depot
at Jamshedpur.


Present R
oad Network (Of RCD)

Category

Total Road length in Kms

National highways

1844.07

State highways

1886.40

Major District Roads (
MDR
)

4987.44

Others

175.77

Total

8893.68


Social infrastructure

The state is in the process of setting up 100
-

500 bedded h
ospitals but there remains a lot of gap between
demand and supply, which provides huge opportunity to set up medical institutions in the state. There is
scope for setting up Medical College/Dental College, Superspeciality Hospitals and Paramedical Institut
ions.
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4

The State has developed a policy guideline on Public Private Partnerships (PPPs) for strengthening medical
colleges, superspeciality hospitals, nursing schools /colleges so as to address the emerging needs in the
healthcare sector and deliver better
health services.

Functional Health facilities in Public Health

District Hospital

: 21

Sub divisional Hospital:

6

Referral Hospital: 32

Apollo Hospital: 1

CHC: 188

PHC: 330

HSC: 3958

Medical Colleges: 3

Nursing Colleges: 1

Nurses Training School (GNM): 3

N
ursing College: 1

ANMTC: 10

Homeopathy College: 1

Ayurveda College: 1

Engineering College: 18

Polytechnic College: 20

ITI: 22 govt. + 135 pvt.

International Schools: 3 near Ranchi

Standard Hospitals such Appolo, near Ranchi


Technical Education
: There ar
e 18 Engineering Colleges (three have deemed university status), 10
Management Institutes and 20 diploma Institutes
operated by the Government

as well
the

Private sector.

Page :
5

The government has taken initiative to promote
operations

of technical institutions i
n the
PPP

mode. In the
first phase three new engineering colleges at Ramgarh, Chaibasa, Dumka and Polytechnics at Silli and Dumka
will be made operational from academic session 2012
-
13.

The Jharkhand Technical University is being established to improve and

effectively administer the technical
institutions of the state and bring them under one umbrella. Necessary legislation is also being processed to
allow private University in the state to promote Technical Education.

Key PPP Projects

The state is committe
d to developing physical and social infrastructure and uses PPP as the preferred mode
to implement various projects.

Some of the PPP projects in the State are described below:

PPP Initiatives
-
Department of Industries



Adityapur Toll Bridge Company Limited (
ATBCL)



Software Technology Park of India (STPI), Namkum



Development of Mega Industrial Growth Center at Barhi



Common Effluent Treatment Plant & HWMF at Adityapur



Super Speciality Hospital at Tupudana, Ranchi


PPP Initiatives
-
Department of Information T
echnology



Development of 4562 Common Service Centers across Jharkhand as part of National e
-
Governance Plan


PPP Initiatives
-
Department of Mines / JSMDC



Selection of JV partner for Rabodh, Patratu and Pindra Debipur Coal Blocks of JSMDC in Jharkhand



PPP
Initiatives
-
Urban Development Department



Bus Terminus cum Commercial Complex, Ranchi


PPP Initiatives
-
Department of Sports, Culture, Youth Affairs



Upgradation, Operation & Maintenance of facilities at National Games



Complex at Ranchi



Establishment of Nat
ional Sports University at Ranchi


PPP Initiatives
-
Department of Tourism / JTDC

Upgradation, Operation and Maintenance of



Hotel Birsa Vihar at Ranchi(Bidding Completed)

For the following RFP expected by Mar
-
Apr
-
2012



Hotel Ratan Vihar at Dhanbad



Hotel Vibh
uti Vihar at Ghatshila



Tourist Complex at Hesadih, Palamu, Jamshedpur, Hundru etc.



Tourist Plaza & Jungle Hut at Betla,



Tourist Information Centre at Hazaribagh, Madhuban & Jamshedpur



Kanke Dam Tourist Place



Wayside amenities at Madhupur, Chasmore, Aaram
Tamar, Kandra & Bagodar



Development of Golf Course at Ranchi

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6


PPP Initiatives
-
Department of Science & Technology / Labour, Employment & Training (RFP expected by
Feb 2012)

Upgradation, Operation, Maintenance and Management of Newly Constructed
(RFP expect
ed by Feb 2012)



Engineering College at Ramgarh
(RFP expected by Feb 2012)



Engineering College at Dumka
(RFP expected by Feb 2012)



Engineering College at Chaibasa
(RFP expected by Feb 2012)



Polytechnic College at Silli
(RFP expected by Feb 2012)



Develop
ment of 17 Polytechnics in Jharkhand (RFP expected shortly)



Upgradation, Operation, Maintenance and Management of Newly developed 42 nos. of ITI’s in the State
of Jharkhand


PPP Initiatives
-
Animal Husbandry Department



Revival of Bacon Factory with Private
Sector Participation (RFP to be issued shortly)


PPP Initiatives
-

Road Construction Department



Development of PWD Inspection Bungalows as Budget Hotels(Bidding completed)



Development of Ranchi Ring Road, Sec


III, IV, V & VI



Development of Ranchi
-
Patratu
-
Ramgarh Section (62 km)



Development of Ranchi
-
Patratu
-
Ramgarh Section (62 km)



Development of Chaibasa
-
Saraikela
-
Kandra
-
Chowka Road (70 km)



Development of Adityapur
-
Kandra Road Section (16 km)


More road and bridge projects in PPP mode for development of S
tate Highways are expected


The Way Forward



Prospective PPP Initiatives Vision




Assistance from Govt. of India


Department of Energy and Jharkhand State Electricity Board:



Development of Patratu Thermal Power Station (PTPS) to achieve the ultimate capacity

of 2000 MW
power to the state



Several Solar & Hydro projects


Department of Industries:



Development of Economic Corridor along the NH
-
33 (Barhi
-
Baharagora)



Development of Textile/ Handicraft clusters



Development of Iconic Cyber Tower at Ranchi



Development

of Convention Centre at Ranchi


Urban Development Department/ RMC/RRDA:



Development of Real Estate/Commercial projects in all major cities within the state



Bus Stands at Bokaro, Jamshedpur and Dhanbad



Running City Bus Services in Ranchi, Jamshedpur and Dh
anbad


Prospective PPP Projects Department of Tourism:



Development of Tourism Infrastructure Master Plan in Jharkhand and Identification of suitable Projects

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7



Development of eco
-
tourism infrastructure (Master Plan for DVC area in Progress)


Department of Ro
ad Construction:



2
-
Laning/ 4
-
Laning of other State Highways



Development of Missing Links and Bridges


Department of Handloom, Sericulture & Handicrafts:



Setting up Jharkhand Silk Training Institute at Bhagaiya, Godda


Industrial clusters

The State Governme
nt has
set up an
ambitious plan
to install and promote
3
-
tier Growth Centres,
at

Mega,
Mini and Micro levels. Mega Growth Centres at Barhi, Hazaribagh
will offer
modern infrastructure facilities
for rapid industrialization

in the state
.

With an investment

of Rs. 30 crores to Rs. 40 crores, the state growth
sectors will
provide quality infrastructure inputs like land, water, power, communication, etc.

Also, the state is contemplating to set up
Industry specific Mini Growth Centres

at various locations which

require a boost to industrial activity. The State Government will set up these Growth Centres while keeping
in mind the
locational advantages with respect to availability of raw material, manpower, connectivity and
market.

These Growth Centres will shift
the focus of the growth of
industries into rural areas,

at the same
time
ensuring that these growth centres are located near main highway and the district head quarters.

These centres are aimed to increase the
employment

opportunities
for the local populat
ion, and the nearest
town would provide residential / schooling facilities for the families.

The State Government has also suggested to boost the
village based industries,

by setting up
Micro
Industrial Areas / Parks at each block level which

intend to off
er
basic infrastructure facilities to the rural
entrepreneurs, artisans and craftsman.

Special Economic Zones (SEZs)

The Government of India has announced a Policy of Special Economic Zones (SEZs) during March 2000 with a
view to augmenting infrastructure
facilities for export production. Settings up of Special Economic Zones are
permitted in the public, private, joint sector or by the State Governments.

Jharkhand Government intends to exploit the SEZ concept for impacting the State's socioeconomic fabric
t
hrough enhanced job opportunities and industrial development. With the background of the Government
of India guidelines for SEZs, the State has decided to formulate the following
SEZ
Policy

to provide a
comprehensive framework for establishment operation and sustainability of the SEZ in the State.

Special Facilities for NRIs PIOs

The State is
committed

to promotion of Foreign Direct Investment
(FDI)
in the state. It is proposed to ent
er
into technological collaboration with overseas corporate bodies /multinational companies /
non
-
resident
Indians (
NRIs
)

for foreign investment and latest technologies in selected sectors such as infrastructure
Page :
8

power,

mineral
development,

food
processing,

bio
technology,

non conventional energy etc. on mutually
advantageous
basis. Overriding priority

shall be given to such investors.


Presently an NRI cell has been set up to facilitate special care and timely clearances for NRI investments.

For
further info
rmation, one may contact
Sri K.N. Jha,
through his mobile no.

+91 9934556689
or

email ID
:
jhr
-
doi@nic.in
.

Stat
e Policies & Incentives of the S
tate

Tax incentives & exemptions for NRIs

New Jharkhand Industrial Policy (
D
raft)

gives importance to employment generation sectors e
.
g
.

IT, Textiles

&
Apparel,

Agro and Food
Processing, Automobiles

and Auto Components.

Incentives and Concessions Proposed in New JIP (
Draft)
:

i.

Comprehensive Project Investment Subsidy (
CPIS)

up to 5
.0 crores

ii.

NET VAT reimbursement 75
%
-

6
0%

Subsidy for investments.

iii.

Stamp & Registration Fee 50%
-

100%

iv.

Incentive for Industrial Park/ Private Industrial Area/ State:
50% of cost upto
maximum Rs. 10 crore
will be bo
rn
e

by State Government.

v.

Incentive for Clu
ster development
:

Minimum grant of 10% of total approved project cost by the
Government or SVP on contribution which ever is less will be offered by State Government.


vi.

Quality Certification: 50 % of expenditure incurred upto maximum of Rs. 2 lakhs.

vii.

Paten
t Registration: 50% of expenditure incurred upto maximum of Rs. 2 lakhs.

viii.

Incentive for Agro Food Processing based industries: 10% of the project cost provided the DPR of the
project is approved by GOI
-
MSME.

ix.

Incentive for captive power plant: captive power
plant shall be exempted from the payment of 50%
of electricity duty for a period of five years.

Investment subsidies for NRIs

The State Government has set up an

Industrial
Policy

which offers a number of incentives for the promotion
of
i
ndustrialis
ation
in the State. With an initial investment of INR 50 crore, the State Government has set up
s
pecial packages for new

industrial
projects
. Moreover, the Government also
encoura
ges f
oreign
investments and technological collaborations by
Overseas Corporate Bodies (OCBs)
and NRIs in selected
sectors
.


Page :
9

Incentives for FDIs

According to the
State Industrial Policy 2001,
the State Government of Jharkhand promotes
foreign
investment and

technological collaboration by OCBs and NRIs
within selected sectors
, such as infrastructure,
power, mineral development, telecommunication, frontier technologies and in the field of non
-
conventional
energy sources, environmental protection, food processi
ng, bio
-
technologies, tissue culture,
pharmaceuticals (life saving drugs) and value added industries on mutually advantageous basis. Overriding
priority shall be given to such proposals.

Availability
of

Finance

Entrepreneurs may apply for finance through
S
cheduled Commercial Banks, Private Banks

and

SIDBI
.

Business Opportunity

Single window

To increase the rate of in
ustrialis
ation

in the state, the State Government
facilitate
s

easy and fast clearances
and approvals for investment proposals for
entrepreneurs

in the state. For this purpose, the state has set up
Center for Industrial Development by
the Industries Department, Government of Jharkhand
and the
Single
Window System
.
For investments o
ver INR 50 crore, the State Government has set up a
Committee
that
has
been formed under the Chairmanship of the Chief Secretary with secretaries from all concerned
departments and representatives from banks and financial institutions as members. A similar

committee has
been constituted at the Directorate level under the chairmanship of the Director Industries which will review
the progress of all investment proposals received.

Special agencies to facilitate industrialisation

In order to facilitate industr
ialisation in the state, the government has formulated various agencies and
organisations that help investors in setting up industries in the state. Some of these agencies include:



Adityapur Industrial Area Development Authority



Ranchi Industrial Area Deve
lopment Authority



Bokaro Industrial Area Development Authority



State Khadi Board



Jharkhand Industrial Infrastructure Development Corporation (JIIDCO)



JHARCRAFT

Investment Opportunities



Setting up of Food Processing units at Mega Food Park, Getalsud, Ranc
hi

Page :
10



Setting up of Knowledge City at Khunti near Ranchi



Automobile Clusters and Manufacturing of two wheeler, Four Wheeler and commercial Vehicles.



IT and related Industries BPO



Superspeciality Hospitals, Luxury and Budget Hotels, Air Taxi



Development of

Bar
hi Growth Center 350 acres



Development of Industrial Corridor on NH 33



Cluster
Development: Cement
, R
efractori
e
s,
Auto cluster
, Hand Tool Cluster,



PPP mode educational and skill development and technical institutions



I
n
frastructure Development in PPP

Key
Policy Updates



Rehabilitation & Resettlement Policy 2008



Consent Award
-

draft available



Revise
d

Draft Jharkhand Industrial Policy
-

2011


For More Information Please Contact

A.P. Singh, I.A.S.

Secretary

Department of Industries

Government of Jharkhand

3rd Floor, Nepal House

Ranchi
-

834002

Phone: +91 651 2490746

Fax +91 651
-

2491587

e
-
mail: se
c
-
ind
-
jhr@nic.in, secind@rediffmail.com


Vandana Dadel, I.A.S.

Director

Directorate of Industries

3rd Floor, Nepal House

Ranchi
-

834002

Phone: +91 651 2491884

Fax +91 651 2491884

e
-
mail: jhr
-
doi@nic.in

web site: www.jharkhandindustry.gov.in, www.jharkh
and.gov.in

Contact details of
Different Department
:

Shri A. K. Sarkar,IAS

Additional Chief Secretary

Department of Mines & Geology

Govt. of Jharkhand


Phone: 0651
-
2490170

Fax: 0651
-
2490641

S
h
ri Vimal Kriti Singh, IAS

Principal Secretary

Department of Ene
rgy

Govt. of Jharkhand


Phone: 0651
-
2490053

Fax: 0651
-
2491002

Shri K.Vidyasagar, IAS

Principal Secretary

Health, Medical Education & Family Welfare

Phone: 0651
-
2491033

Fax: 0651
-
2490314

Page :
11


S
h
ri N.N. Sinha, IAS

Secretary

Department of
Road Construction

Govt. of Jharkhand




Phone: 0651
-
2400239

Fax: 0651
-
2400243

Shri Arun Kumar Singh, IAS

Secretary

Department of Agriculture & Sugar Cane Development

Govt. of Jharkhand


Phone: 0651
-
2490578

Fa
x: 0651
-
2490940

Dr. M Neelima Kerketta, IAS

Secretary

Department of Tourism

Govt. of Jharkhand


Phone: 0651
-
2400981

Fax: 0651
-
2400982