INDIAN STATE : JHARKHAND

General Information

Jharkhand lies in eastern India. It was carved out of the southern part of Bihar state on 15th November 2000. Jharhkand shares its border with the states of Bihar to the north, Uttar Pradesh and Chhattisgarh to the west, Orissa to the south, and West Bengal to the east. The industrial city of Ranchi is its capital. The other major cities and indurstrial centres are Jamshedpur, Bokaro, Giridih and Dhanbad.

Fact File

*CSO Estimates
Official website of Government of Jharkhand
Economic Survey of Maharashtra, 2005-2006

Advantage Jharkhand

• Abundant Minerals: The state has huge reserves of minerals with approximately forty percent of the country's resources being available in the state. The state is the sole producer of cooking coal, uranium and pyrite. It ranks first in the production of coal, mica, kyanite and copper in India. There exists further potential for exploration and exploitation of gold, silver, metals, decorative stones, precious stones, etc.
• Skilled Manpower: There are a number of renowned institutions such as XLRI at Jamshedpur, Indian Institute of Coal Management at Ranchi, BIT at Sindri, etc. These institutions produce highly skilled and qualified workforce.
• The state also has adequate power generation and efforts are being made to enhance it. Jharkhand also has adequate availability of surface and ground water and is sufficient with immense biodiversity supported by a moderate climate.
• Locational Advantage: Jharkhand is located close to Calcutta, Haldia and Paradeep Ports. Ranchi, the capital, is well connected by air, rail and road. Industrial towns have excellent rail and road connectivity with major market places in the country.
• Conducive R&D Facilities: the state houses top most metallurgical institutions like NML Jamshedpur, SAIL R&D, etc.
• Industrious work force

Economic Infrastructure

Roads

The status of roads in the state is as follows:

The total length of roads in the state is 4311 km. This includes:

• National highways: 1600 Kms
  
• State highways: 2711 Kms

An ambitious project of providing four-lane highway between Hazaribagh and Baharagoda (Jamshedpur) measuring 333 kms is under construction. A detailed project report for construction of high specification road between Ranchi and Sahebganj via Govindpur, Jamtara and Dumka is being prepared, which will provide gateway to Assam and North East. Similarly Ranchi - Daltonganj - Garhwa roads shall also be strengthened.

Special attention is being paid to improve and upgrade the existing road network and provide new road linkages / bypasses with bridges over rivers to facilitate quick and efficient movement of raw materials and finished goods.

The Government encourages private sector participation on Build-Operate-Transfer (BOT) concept for building and maintenance of roads and bridges. With respect to the bridges upon the National Highways, the State Government shall undertake steps to involve Private Sector Participation in consultation with the Government of India. The state government would also allow commercial use of specified road side land in order to improve the economic viability of such road / bridge projects as per the approval plan.

Railways

The state has extensive and well-developed railway system providing vital links to mining industry and tourism with important cities and ports of the country. The state has extensive goods-handling facilities available at Ranchi, Bokaro, Dhanbad and Jamshedpur (Tata Nagar). In addition, ore loading facilities are available at Kiriburu, Lohardaga and all the coal mines of Central Coalfields Ltd.

Aviation

Ranchi is connected with Delhi, Patna and Mumbai. Jamshedpur, Bokaro, Giridih, Deoghar, Hazaribagh, Daltonganj and Noamundi have airstrips.

The state government has taken steps to set up Air Cargo Complex at Ranchi. This would provide boost to export oriented industries, specifically, those operating in the area of high value and perishable commodities.

Power

The installed capacity of power in Jharkhand is 2590 MW. This includes 420 MW (Tenughat Thermal Power Station), 840 MW (Patratu Thermal Power Station), 130 MW (Sikkidiri Hydel Project), and 1,200 MW (Damodar Valley Corporation Thermal/Hydel project). The prospect of capacity addition in both the thermal and hydel sectors of various power stations is 4,736 MW.

Telecommunication

Jharkhand Telecom Circle, a newly created territorial unit of Bharat Sanchar Nigam Limited (BSNL), is providing vital telecom infrastructure in the state. Jharkhand telecom circle is committed to provide state of art telecom services in the every part of Jharkhand at affordable price.

Source: http://www.jharkhand.bsnl.co.in/generalinfo.htm

Major Industries

Mining and Mineral Based Industries

The potential for growth in mining and mineral based industries is immense. This sector has huge potential for attracting large investments to create employment and raise resources. It would be the endeavor of the state government to expedite the granting of mining leases and simplify the procedures with respect to the grant of mining leases. In addition, the state government would also provide certain relief to make mining activities easier.

Concerted efforts are being made to expedite / undertake survey / exploration of mining resources. Modern methods of exploration like remote sensing, arrow magnetic survey and other methods are being used to set up the resource inventory of various minerals in the state. The state government encourages participation of reputed private parties, multinationals and central and state agencies in this exercise.

The state government encourages joint venture projects with State Mineral Development Corporation (SMDC) especially in the field of mining. Private sector is being encouraged to take up mining activities in the state. Mining lease applications along with project report and all relevant documents would preferably be disposed off within a period of 60 days of the filing of such application. Suitable steps are also being taken to adopt state of art technology in mining activities. For this, the government promotes private sector participation and would offer a package of reasonable concessions on case-to-case basis. To ensure raw material linkage to mining-based and other industries, priority in granting mining leases to such industries and other such facilities shall be extended.

Drugs and Pharmaceuticals

The Indian pharmaceutical industry is one of the largest and most advanced and well organized among the developing countries. It is rapidly growing and is expected to hit US$ 75 billion by 2020 and create 1.8 million additional employment. Jharkhand offers excellent opportunities for growth of the pharmaceutical industry, owing to the following advantages:

• Availability of trained and skilled manpower
  
• Facilities for research and development
  
• Excellent rail, road connectivity, air linkage, and telecommunication facility
  
• Facilities of ports at Paradip and Haldia port
  
• Inland container depot at Jamshedpur
  
• Environmental protective measures are in place
  
• Single window clearance
  
• Facilities for Indian/ global MNCs to set up their JV/ 100% manufacturing units

Investment opportunities exist in the drugs and pharmaceutical sector with respect to the following activities:

• Manufacturing of medicines to cater to the huge domestic market.
  
• Export of pharmaceutical products to developed as well as developing countries.

Information Technology

The state government is fully committed to make Jharkhand an IT powerhouse and a front-runner in the information revolution. The state is focused for proliferation of IT into the day-to-day life of its citizens and uplifting the standard of living. Jharkhand has recognized that IT shall play a significant role in achieving its policy objectives like economic development, enhancing the quality of life, and providing good governance to its citizens and hence aims to create an ambience to target for a $5 billion annual export from Jharkhand IT industry by 2010.

Special incentives for IT industry

• Exemption from environmental clearance
  
• Exemption from zoning regulations for purpose of location
  
• Self-certification on compliance of several Acts
  
• 0.25 per cent rebate in allotted land cost per job created
  
• Rebate on registration charges and stamp duty for sale/lease of space for establishing IT infrastructure
  
• At least 30 per cent employment to Jharkhand residents.

Steel Industry

Steel is an inseparable part of human civilization and is essential to the country's economic development. Today, India is developing as an emerging giant in the field of Iron and Steel and the National steel policy envisages production of 110 million ton steel by 2020. The demand for steel is increasing within the country with all round acceleration in industrial activity.

Jharkhand has total reserve of 3218.08 million tonnes hematite areas accounting for about 30 per cent of the national reserves. Large public and private sector industrial units including TATA Steel, Bokaro Steel and Usha Martin among others have utilized the immense opportunities in the steel sector in Jharkhand and have triggered an industrial revolution in the process.

Agriculture and agro-based industries

One of the main strategies for development of Jharkhand state is to ensure agricultural and rural development on sustainable basis with capacity building being the focal point for the developmental endeavor.

For the purpose of agricultural development, special emphasis is being laid on technological aspects, ensuring new, cheap and timely availability of inputs.

In agricultural sector there is scope for bringing additional area under cultivation through vertical and horizontal expansions, increasing area under irrigation, increasing production and productivity of food crops through optimum utilization of inputs like seeds, fertilizers, pesticides, agricultural tools and implements, etc.

Besides these horticultural development has vast potentialities not only in terms of meeting the local requirements of fruits, vegetables, flowers, medicinal and aromatic plants but also in terms of exploiting the opportunities for exports. Similar is the situation with the livestock enterprises with respect to increasing milk, meat and egg production. Favourable agro-climatic conditions allow round the year production of varieties and "off-season" vegetable (such as brinjal, cabbage, cauliflower, ladies-finger, onion, peas, potato, pumpkin, mushroom, capsicum and green chilly) and fruits (such as mango, leechi, guava, banana, papaya, lemon, hack fruit, amla and others). There is vast scope in the state for establishing food processing units including those of fruit and vegetable preservation, milk and meat preservation and for processing of minor forest produce.

Jharkhand has a leading advantage for agro-based industries owing to the following factors:

• Availability of land for setting up post -harvest infrastructure.
  
• Hassle- free single window clearances
  
• Assured water and power connections
  
• Capital investment subsidies in addition o APEDA/ NHB subsidies
  
• Sales tax concessions and tax holidays
  
• Facility of Special Economic Zone at Jamshedpur
  
• Agri- export zone for vegetables and fruits at Ranchi linked with major production centres.
  
• Joint venture possibilities with Jharkhand State Agriculture Marketing Board and Department of Industries, Jharkhand.
  
• Technical knowledge back up from horticulture and agro-forestry research centres.
  
• Immense scope for contract farming/organic farming
  
• Luxuriant forest covers rich in natural medicinal plants

Based on the availability of raw materials, infrastructure as well as domestic and export needs, investment opportunities for potential investor has been identified in the following areas:

• Grain holding and storage
  
• Creating food processing facilities
  
• Producing juices, pulps, extracts of fruits and vegetables, canned fruits and vegetables
  
• Brined, picked and pasteurized vegetables offer export prospects
  
• Cold chain infrastructure for perishable fruits and vegetables

Forest based industries

Forest based industries come into the picture primarily because of an ever-increasing demand for power in the country. The fossil fuel resources are estimated to last only for the next 50 years and bamboo biomass has been identified as an alternative source of bio-energy. The technical feasibility of using bamboo in biomass gasifiers has been versified and confirmed by the Indian institute of Science, Netpro Renewable Energy (India) Ltd. Bangalore and other Institutions in the country. It is estimated that the woody biomass production of bamboo at the rate of 15 tonnes / ha of marginal land with protective irrigation can yield adequate biomass to run 1 MW power generation plant effectively. The use of bamboo for power generation can mitigate the rural power crisis, achieving self - sufficiency in power supply.

Also, huge investment potential is there for:

• Units engaged in bamboo-based laminates, composites, boards, plywood etc.
  
• Tasar & Lac based industries.
  
• Medicinal plants sector for propagation, value addition, processing etc.

Thrust Areas

The state has identified a number of thrust areas on the basis of the following criterion:

• Availability of raw material
  
• Market
  
• Manpower resources
  
• Linkage with larger units
  
• Sustainability aspects
  
• Capacity to generate employment

The thrust areas identified on the basis of above parameters are:

• Mining and Mineral Based Industries
• Agro Based Industries
  • Cattle food
  • Jute, hemp, sisal and other fabrics
    
  • Tea cultivation, processing and packaging
    
  • Paper
    
  • Floriculture
    
  • Horticulture
• Industries based on medicinal and aromatic plants
  
• Sericulture/ tassar
  
• Forest based industry like shellac, bamboo, etc.
  
• Engineering, auto components, iron and steel and steel based down stream industries
  
• Chemical based industries
  
• Power generating and allied industries
  
• Electronic and It based industry
  
• Industries based on non-conventional energy
  
• Live stock based industry
  
• Industries based on recycling of wastes, eco friendly raw materials, and processes
  
• Super specialty health services
  
• Telecommunications and related products
  
• Food processing industry
  
• Tourism
  
• Cold storage
  
• Plastic and plastic based industries
  
• Pharmaceuticals and drugs based industry
  
• Leather based industries
  
• Technical education
  
• Ceramics
  
• Sports goods
  
• Packaging
  
• Metallurgical industries including power intensive units like induction furnaces, ferro alloys, oxygen plants, graphite and gas plants, and calcium carbide plants.
  
• Textile, hosiery, knitwear
  
• Handicrafts and handloom based industries
  
• Housing fixtures and related industries

Policy framework

Industrial Policy 2001

The Industrial Policy aims at making Jharkhand one of the most preferred destination for investment, both from inside and outside the country and to ensure accelerated implementation of infrastructure related projects, increasing employment opportunities, improving productivity, ensuring homogeneous and balanced development of all Geographical regions of the State with emphasis on development of small, tiny and cottage industries.

Full text of the policy

Objectives of the policy

• Optimal utilization of agro-climatic, mineral and human resources of the state.
  
• Promote economic activities to ensure maximum capital investment in the state with the objectives of increasing employment opportunities, improving standard of living of people at large.
  
• Identification of thrust areas and thrust zones to prioritize the sectors and categorization of backward regions with respect to industrialization.
  
• Develop the state of art technology and infrastructure so as to ensure planned and accelerated industrial development.
  
• Ensure Balanced Regional Development so as to prevent socio-economic distortions due to backwardness of any region.
  
• Encourage and involve private sector participation in the process of planned and rapid industrialisation of the State.
  
• Promote export of such items, in which the state holds advantage vis-à-vis other states.
  
• Revival of viable sick units.
  
• Simplification of procedures and to ensure administrative and legal reforms so as to provide hassle free sensitive administration and time bound effective disposal of matters in a transparent manner.
  
• Take steps to protect and promote rural handicrafts so as to conserve and enrich cultural heritage, traditions and customs of the regions.
  
• Provide better development opportunities to scheduled castes, scheduled tribes, handicapped, weaker sections and women and to ensure their participation in the development process.
  
• Promote research and development, technological upgradation and qualitative improvement and utilisation of state of art technology to improve product, production and productivity.

Strategy of the policy

The strategies to be adopted for achieving the objectives are broadly as follows:

• Rationalize fiscal concessions.
  
• Provide adequate good quality infrastructural support at a reasonable cost for efficient functioning of the industrial sector.
  
• Amend laws/rules for encouraging private sector participation in various sectors.
  
• Simplify rules, regulations and procedures to remove bottlenecks for smooth functioning of the industrial sector.
  
• Improve the quality of services to entrepreneurs with sharp focus upon SC/ST categories, handicapped and women to encourage them to actively participate in the developmental process.
  
• Introduce latest scientific data collection system to make the planning process more realistic.
  
• Make the "Single Window System" more effective at the district, the industrial area and State level.
  
• Strive to put in place appropriate arrangements for ensuring timely and adequate flow of credit to industries, specially the SSI sector.
  
• Assist Industrial Sector in their marketing efforts by providing adequate support services backed by appropriate enabling provisions in the legislations/ rules.
  
• Facilitate availability of technical and financial support for modernization through increased access to Research & Development facilities.
  
• Give thrust to entrepreneurship development through Establishment of Entrepreneur Development Institute (EDI) and other specialized institutions.
  
• Diagnose incipient sickness and initiate timely measures for revival of sick industries and develop a monitoring system at district level to avoid sickness in industry.
  
• Identify the area of concentration of traditional skills and provide training, improve design, technological backup and marketing support. Development of "Craft Villages" and organizing "Craft Bazaars" to provide adequate market access to artisans and craftsmen.
  
• Encourage setting up fruit processing, vegetable processing, spice processing, horticulture and other food processing industries in the State by providing special incentives and basic infrastructure to these industries.
  
• Develop industrial park for specialised activities in the field of information technology, tassar/mulberry, electronics, plastic, chemicals, biotech and herb, export and food processing with adequate power, water, communication, transport and other common facilities.
  
• Emphasis on small power generating units and developing non-conventional sources of energy through private participation.
  
• Encourage development of consumer-oriented industries such as Plastic, Herbs, Drugs, Leather, Handloom, Handicrafts, Khadi, etc.
  
• Issue of notifications by various concerned Departments to give effect to the strategies of the policy.
  
• Institutionalization of Monitoring and Evaluation mechanism.
  
• Mid-term review of implementation of this policy to ensure timely and appropriate corrective actions.

Special Economic Zone Policy

Government of India announced a policy of Special Economic Zones (SEZs) during March 2000 with a view to augment infrastructure facilities for export production. Setting up of Special Economic Zones is permitted in the public, private, joint sector or by the State Governments. These SEZs are to be deemed foreign territory for tariff and trade operations.

With the background of Government of India guidelines for SEZs, the state has formulated its SEZ policy to provide a comprehensive framework for establishment operations and sustainability of SEZs in the state. The concept of SEZ is expected to bring large dividends to the state in terms of economic and industrial development and the generation of new employment opportunities. The SEZs are expected to be engines for economic growth.

Full text of the Policy

Investment Incentives

• Capital investment incentive
  
• Captive power generating subsidy
  
• Interest subsidy
  
• Stamp duty and registration
  
• Employment generation based incentives
  
• Special incentives for thrust areas/EOU/ and SC/ST/ women/ex-servicemen and handicapped persons
  
• Feasibility study - project report cost reimbursement subsidy
  
• Pollution control equipment subsidy
  
• Incentive for quality certification.
  
• Mega units: a special package for the new projects with an investment of more than US$ 10.8380 million on case to case basis is proposed
  
• Simplification of procedures
  
• Marketing assistance and other linkages
  
• Encouragement to Foreign investments and technological collaborations by OCBs and NRIs in selected sectors.

Investment incentives for IT industry

The government of Jharkhand has resolved to make Jharkhand an IT powerhouse and a front-runner in the information revolution.

• Exemption from environmental clearance
  
• Exemption from zoning regulations for the purposes of location
  
• Self-certification for purposes of compliance of the following Acts:
  
  • Water and Air Pollution Act
    
  • Factories Act
    
  • Employment Exchange (Notification of vacancies) Act
    
  • Payment of Wages Act
    
  • Minimum Wages Act
    
  • Contract Labor (Regulation and Abolition) Act
    
  • Workmen Compensation Act
    
  • Shops and Establishments Act; etc.
    
• General permission to run a three shift operation
  
• The Government would provide rebate in the cost of land allotted to an IT Industry @ 0.25% of the cost of land per job created subject to certain prerequisites.

Industrial Areas

The State has at present three Industrial Area Development Authorities with Head Quarters at

• Adityapur
  
• Bokaro
  
• Ranchi

These authorities are responsible for acquisition of land, development of infrastructure facilities like road, drainage, park, water supply, public utilities, etc. within their jurisdiction. It is contemplated to establish an Industrial Area Development Authority for Santhal Pargana with head quarters at Dumka.

Useful Web Links

Official Website of Government Of Jharkhand