himachal pradesh - august 2013

7/27/2019 Himachal Pradesh - August 2013

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Strong economic growth Himachal Pradesh is one of the fastest growing states in India. Its per capita GSDP is

estimated at US$ 1903.5 during 2012-13, as compared to the national per capita GDP of US$ 1414.2.

High literacy rate As per 2011 census (provisional data), Himachal Pradesh has a literacy rate of 83.8 per cent compared to the national average of 74.0 per cent.

Tourists paradise Himachal Pradesh, known as the Land of Gods, is famous for its sheer topographic

diversity and pristine natural beauty. The state received 16.1 million tourists, including500,284 foreign travellers, in 2012.

Indias hydro -power hub

With a hydro power potential of 23,000 MW (of which just 8,368 MW has been harnessed),Himachal Pradesh accounts for 25 per cent of the countrys total hydro power potential.

The state also boasts of a high level of village electrification; about 17,480 of 17,495villages had been electrified by the end of March 2013.

Increasing agriculturalproductivity

The governments emphasis on improving productivity has yielded positive results, withfood grain production per hectare rising to 1.96 MT in 2011-12 from 1.41 MT in 2009-10.Productivity is also expected to increase to 2.02 MT by 2014. In the horticulture segment,Himachal Pradesh is the second largest producer of apples in India, with a production of 392,000 tonnes until December 2012.

Source: Himachal Pradesh Economic Survey 2012-13, Aranca Research

Note: MT- Metric Tonnes


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GSDP : Gross State Domestic ProductSource: Socio-Economic Survey of Himachal Pradesh 2012-13

The engineering sector is delicensed;100 per cent FDI is allowed in thesector

Due to policy support, there wascumulative FDI of USD14.0 billion intothe sector over April 2000 February 2012, making up 8.6 per cent of totalFDI into the country in that period

Growing demand

High economic growth andstable political environment

GSDP expanded at a compoundedannual growth rate (CAGR) of 14.7per cent between 2004-05 and 2012-13.

With a stable political environmentand a single-party government, thestate government is committedtowards creating a progressivebusiness environment.

Rich labour pool andinfrastructure support

The state has a large base of skilledlabour, making it a favourabledestination for knowledge-basedsectors. It also has a large pool of semi-skilled and unskilled labours.

Himachal Pradesh has a stronghydropower base, with a potentialcapacity of 23,000 MW.

Policy and incentives

The state offers a wide range of policyand fiscal incentives for businessesunder the Industrial Policy, 2004.

Himachal Pradesh has well draftedsector-specific policies for biotechnologyand IT.

Pharmaceuticals and foodprocessing hub

Himachal Pradesh has attracted

investments in pharmaceuticals, ITand engineering industries. Agriculture plays a significant role in

the states economy. HimachalPradesh has a robust food processingsector.

Advantage:HimachalPradesh


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Himachal Pradesh is located in the Northern region of India.The state is surrounded by Jammu & Kashmir on the North,

Punjab on the West and the South-West, Haryana on theSouth, Uttar Pradesh on the South-East and China on theEast.

Being a sub-Himalayan state, Himachal Pradesh has avaried climate that changes with altitude. The climateranges from warm and sub-humid tropical at low altitudes tocold and icy at high altitudes. There are three mainseasons: winter from October to March, summer from April

to June and rainy from July to September.

Sources: Government of Himachal Pradesh website,www.himachal.nic.in,

* Provisional data Census 2011

Parameters HimachalPradesh

Capital Shimla

Geographical area (sq km) 55,673

Administrative districts (No) 12

Population density (persons per sqkm)* 123

Total population (million)* 6.85

Male population (million)* 3.47

Female population (million)* 3.38

Sex ratio (females per 1,000 males)* 974

Literacy rate (%)* 83.8

Source: Maps of India


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* Calculated in Indian rupee terms, ** As of December 2011

Parameter HimachalPradesh All-States Source

Economy

GSDP as a percentage of all states GSDP 0.8 100Planning Commission Data book, 2012-13,

current prices

Average GSDP growth rate (%)* 14.7 15.6 Planning Commission Data book, 2004-05 to2012-13, current prices

Per capita GSDP (US$) 1,903.5 1,414.2 Planning Commission Data book, 2012-13,current prices

Physical Infrastructure

Installed power capacity (MW) 3,770.1 225,133.1 Central Electricity Authority, as of May 2013

Wireless subscribers (No) 7,015,343 867,803,583 Telecom Regulatory Authority of India, as of March 2013

Broadband subscribers (No) 81,480** 15,050,000Telecom Regulatory Authority of India, as of

March 2013

National Highway length (km) 1,553 79,116Ministry of Road Transport & Highways, as of March 2013, Himachal Pradesh Public Works

Department

Airports (No) 3 133 Airports Authority of India


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Parameter HimachalPradesh All-States Source

Social Indicators

Literacy rate (%) 83.8 74.0 Provisional data Census 2011

Birth rate (per 1,000 population) 16.5 21.8 SRS Bulletin (www.censusindia.gov.in), 2012

Investment

FDI equity inflows (US$ billion) 1.2* 193.4 Department of Industrial Policy & Promotion, April 2000 to February 2013

Outstanding investments (US$ billion) 68.4 10,499.2 CMIE (2012-13)

Industrial Infrastructure

PPP projects (No) 1 881 www.pppindiadatabase.com

* Including Chandigarh, Punjab and HaryanaPPP: Public-Private Partnership, SRS: Sample Registration System


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5 67

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At current prices, Himachal Pradeshs GSDP was estimatedat US$ 13.3 billion over 2012-13.

GSDP expanded at a CAGR of 14.7 per cent** between2004-05 and 2012-13.

Growth was mainly driven by tertiary and secondarysectors.

Source: Himachal Pradesh Economic Survey, 2012-2013*Advanced estimates, ** In Indian rupee termsNote: CAGR - Compound Annual Growth Rate

GSDP of Himachal Pradesh at current prices(in US$ billion)

CAGR14.7%**


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5 5 6

7 78

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At current prices, Himachal Pradeshs net state domesticproduct (NSDP) was estimated at US$ 10.6 billion during2012-13.

NSDP increased at a CAGR of 13.3 per cent** between2004-05 and 2012-13.


NSDP of Himachal Pradesh at current prices(in US$ billion)

CAGR13.3%**


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843 9531,029

1,2851,362 1,517

1,8271,929 1,904

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Himachal Pradeshs per capita GSDP increased to US$1,903.5* over 2012-13 from US$ 843.0 during 2004-05.

Average per capita GSDP rose at a CAGR of 13.4 per cent** between 2004-05 and 2012-13.


GSDP per capita of Himachal Pradesh atcurrent prices (In US$)

CAGR14.9%**


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25.7% 19.2%

38.1%40.2%

36.2% 40.7%

2004-05 2011-12*

Primary sector Secondary sector Tertiary sector

During 2011-12, the tertiary sector accounted for 40.7 per cent (US$ 5.4 billion) of GSDP (at current prices), followedby secondary (40.2 per cent; US$ 5.4 billion) and primary(19.2 per cent; US$ 2.5 billion).

At a CAGR of 16.9** per cent, tertiary has been the fastestgrowing sector among others from 2004-05 to 2011-12.

Agriculture retains a major share of the primary sector.Community and personal services are the main componentsof the tertiary sector.

An increase in the secondary sectors contribution to GSDP(to 40.2 per cent over 2011-12 from 26.5 per cent during1990-91) reflects healthy signs of industrialisation andmodernisation in the state.

Source:Himachal Pradesh Economic Survey, 2012-2013* Provisional, ** In Indian rupee terms

GSDP composition by sector

CAGR

10.2%**

16.9%**

15.8%**


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Source: Himachal Pradesh Economic Survey 2012-13^ Estimates, * Production up to December 2012

#Food grains include rice, maize, ragi, small millets, wheat, barley,

gram and other pulses

Crop Annual production(000 tonnes) 2012-13^

Rice 105

Maize 730

Ragi 3

Small millets 3

Wheat 544

Barley 30

Gram 1

Other pulses 32

Potato 185

Vegetables 1385Ginger (dry) 4

Apple 392*

Other fruit crops 75*

Over 2012-13, the total area under food grain production inHimachal Pradesh was estimated at 77 million hectares.

Overall production of food grains in the state was projectedat 1.4 million tonnes during 2012-13.

Maize, wheat and rice are the major food grains produced inHimachal Pradesh.

Vegetable production was estimated at 1.4 million tonnesover 2012-13.

Apple remains the major fruit crop, with mango and litchigaining prominence in the recent years. Other major fruitsgrown are peaches, apricots and cherries.

Apple production had reached 392,000 tonnes during April-December, 2012. Apples account for around 83 per cent of the total fruit production of Himachal Pradesh.


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According to the Department of Industrial Policy &Promotion (DIPP), FDI inflows totalled US$ 1.2 billion* from

April 2000 to February 2013.

Over 2012-13, outstanding investments in HimachalPradesh totalled US$ 68.4 billion.

The electricity sector accounted for around 65 per cent of total outstanding investments, followed by services (16 per cent) and manufacturing (11 per cent).

Source: CMIE*Including Chandigarh, Punjab and Haryana

Break up of outstanding investments by sectors(2012-13)

65%11%

16%

5%

2%1%

Electricity

Manufacturing

Services

Irrigation

Real Estate

Mining


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Since much of the state is hilly, roads play a vital role intransportation.

The state had a total road length of 34,480 km as of December 2012.

As of December 2012, the length of national highways inthe state was about 1,553 km.

Source: Himachal Pradesh Economic Survey, 2012-13

Source: Maps of India


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Source: Himachal Pradesh Economic Survey 2012-13*Up to December 2012

Road type 2008-09 2009-10 2010-11 2011-12 2012-13*

Motorable double lane (kms) 2,377 2,384 2,403 2,411 2,416

Motorable single lane (kms) 27,925 28,832 29,464 29,999 30,355

Jeepable (kms) 345 300 290 276 273

Less than jeepable (kms) 1,803 1,655 1,565 1,483 1,436

Total (kms) 32,450 33,171 33,722 34,169 34,480

Roads have been assigned a high priority by the Government of Himachal Pradesh. Over 2012-13, the government outlayfor road development and related activities was US$ 138 million. The government plans to connect 99 more villages throughroad transport, of which, 73 villages stood connected as of December 2012.

As of December 2012, 9,861 villages were connected with roads in the state.


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Himachal Pradesh falls under the Northern Railwaysnetwork.

In the Railway Budget 2013-14, the Railways Minister announced plans to conduct a survey in the next fiscal for the Baddi-Bilaspur rail line. Furthermore, the Ministry of Railways has decided to impart skills to the youth in

railway-related trades at 25 centres in India; , with Shimlabeing one of them.

As of March 2012, Himachal Pradesh had a total railwayroute length of 296 km.

Two narrow gauge lines connect Kalka with Shimla andJoginder Nagar with Pathankot; with a route length of 96 kmand 113 km, respectively.

A 33-km broad-gauge line connects the Nangal Dam toCharuru.

Sources: Himachal Pradesh Economic Survey, 2012-13Indian Railways

Railway Budget, 2013-14


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There are three airports in Himachal Pradesh at Kullu(Bhuntar), Kangra (Gaggal) and Shimla (Jubbar Hatti).

There are 57 operational helipads, and another 12 newhelipads are being planned.

The state government has identified three sites atKandaghat in the Solan district and Nadaun in the Hamirpur district to establish an international airport in the state.

The state government has recently announced plans tointroduce heli-taxi services, which are expected to improveconnectivity and open up remote areas for tourists.

Source: Himachal Pradesh Economic Survey 2012-13


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Himachal Pradesh is naturally suited for hydropower generation and accounts for around 25.0 per cent of Indias total hydropower potential.

It is estimated that there exists a potential to generate23,000 MW of hydro power in the state through theconstruction of various hydel projects on river basins. The

largest potential for electricity generation lies on the river Satluj (10,361 MW), followed by Beas 5,357 MW), Chenab(2,973 MW) and Ravi (2,958 MW).

Of this hydel potential, 8,368 MW of projects have alreadybeen commissioned, while 3,805 MW of projects are under execution/construction.

Himachal Pradesh is one of the few states in India where

power delivered to consumers is 100 per cent metered. Source: Himachal Pradesh Economic Survey, 2012-13

Assessed hydro power potential (MW)

817

10,361

5,357

2,958 2,973

534

Yamuna Satluj Beas Ravi Chenab Self Identified

/NewIdentified


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As of May 2013, Himachal Pradesh had a total installedpower generation capacity of 3,770.1 MW (comprising 981.7MW under state utilities, 1,748.0 MW under private sector and 1,040.6 MW under central utilities).

Hydro power accounted for 2,950.9 MW of total installedpower generation capacity, followed by renewable power

(587.9 MW) and thermal power (197.2 MW).

As of May 2013, the contribution of the private sector to thecapacity of hydro-based power plants was more than twicethat of the central government.

The state has a high level of village electrification; about17,480 of 17,495 villages had been electrified by the end of March 2013.

As of March 2013, the state had achieved 99.9 per cent of village electrification.

Source: Central Electricity Authority, *As of May 2013

Installed power capacity (MW)

1,896.5 2,030.2

2,326.7

3,584.9 3,770.1 3,770.1

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14*


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Telecom infrastructure (as of March 2013)

Wireless Subscribers 7,015,343

Wire-line Subscribers 280,669

Broadband Subscribers 81,480*

Teledensity (in per cent) 103.75

Public Call Offices (PCOs) 7,206*

Sources: Telecom Regulatory Authority of India,Department of Telecommunications, Annual Report 2011-12,

Ministry of Communications & Information Technology, India Post* As of December 2011

According to the Telecom Regulatory Authority of India(TRAI), Himachal Pradesh had nearly 7.0 million wirelesssubscribers and 280,669 wireline subscribers as of March2013.

According to the Department of Telecommunications,Government of India, the state had 1,170 telephone

exchanges and 7,206 public call offices (PCOs) as of December 2011.

As of March 2013, the state had a high tele-density of 105.39 per cent compared to the national average of 73.3per cent. Major Telecom Operators in Himachal Pradesh

Bharat Sanchar Nigam Limited (BSNL)Bharti Airtel

Tata TeleservicesReliance Communications

Vodafone Essar Aircel Limited

IDEA Cellular Services


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Sources: JNNURM, Ministry of Urban Development, www.urbanindia.nic.in; Municipal Corporation, Shimla

Shimla is one of the 65 cities that have been identified under the Jawaharlal Nehru Urban Renewal Mission (JNNURM) for local infrastructure development.

Under JNNURM, five projects worth US$ 35.2 million have been sanctioned for Shimla.

The projects have been sanctioned between 2006-07 and 2011-12. Key areas of development are roads and flyovers, water supply, solid-waste management and sewerage.

The Government of Himachal Pradesh has constituted a state-level steering committee under the chairmanship of the Chief Minister and has nominated Himachal Pradesh Housing and Urban Development Authority (HIMUDA) as the state-levelnodal agency for implementing the planned projects under JNNURM.


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Source: www.pppindiadatabase.comEOI-Expression Of Interest, BOOT: Build-Own-Operate-Transfer, BOT: Build-Operate-Transfer, DBFOT: Design-Build-Finance-

Operate-Transfer, BOO: Build-Own-Operate

Himachal Pradesh has one project being implemented under the Public-Private-Partnership (PPP) mode; the cost of theproject is US$ 100.2 million. Additionally, a PPP of US$ 360-560 million has been mooted for the development of aninternational airport in the state.

Contract authority Project Investment(US$ million) PPP type Stage

National Highway Authority of India Zirakpur-ParwanooRoad 100.2 BOT -Toll Under construction


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The state has a literacy rate of 83.8 per cent according tothe provisional data of Census 2011; the male literacy rateis 90.8 per cent and the female literacy rate is 76.6 per cent.

Sarva Shiksha Abhiyan, a programme to ensure theuniversalisation of elementary education, is beingimplemented in the state on a priority basis.

Net enrolment ratio (NER) at the elementary stage (6-14age group) of education in the state stood at more than 99per cent, indicating negligible students outside the formalrange of education.

Himachal Pradesh is placing special emphasis on girleducation, with the implementation of National Programmefor Education of Girls at Elementary Level (NPEGEL) in

eight educationally backward blocks, where rural literacyrates were below the national average.

Literacy rates (%)

Literacy rate 83.8

Male literacy 90.8

Female literacy 76.6

Source: Himachal Pradesh Economic Survey 2012-13


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No of educational institutions(functional) 2012-13

Primary 10,620

Middle 2,339

High schools 836

Senior secondary schools 1,330

Degree colleges 75

Pupil-Teacher Ratio (2010-11) 16:1 (allschools)

There were 10,620 primary schools over 2012-13, ensuringeducation at the granular level.One engineering college in Bandla in the Bilaspur districtand five government polytechnics (in Bilaspur, Kullu,Kinnaur, Sirmaur and Lahaul & Sipti) are expected to beopened from the academic session starting from August2013.

Vocational courses are currently offered in 25 senior secondary schools in the fields of electronic technology,computer techniques, audit and accountancy, electrical,horticulture and food preservation.The state is planning to establish 16 new universities in aneffort to boost vocational and higher education.The education department plans to start vocationaleducation in 75 senior secondary schools, with four newcourses (automobile, retail, security and IT).

Private participation is being encouraged in technical andvocational education.With the introduction of new Industrial TrainingInstitutes/Centres (ITI/ITC), the annual seats for vocationaltraining stand at 29,780 in the state.

No of technicaleducational institutions 2012-13

Engineering colleges 20

Medical colleges: 2

Dental colleges 5

Polytechnics 28

ITI/ITC 207

Source:Himachal Pradesh Economic Survey 2012-13


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There are 54 civil hospitals, 76 community health centres,473 primary health centres, 11 ESI dispensaries and 2,066sub-centres in the state.

The state government has launched Himachal Health Vision2020, to provide effective and efficient health services.

Under the National Rural Health Mission, the governmenthas proposed to open four new ayurvedic health centres(AHCs) and one homeopathic health centre, upgradehospitals and provide panchkarma/ksharsutra at 11 centresduring 2013-14.

Under the National Leprosy Eradication Programme, theprevalence rate reduced to 0.25 per ten thousand as of November 2012, compared to 5.14 per ten thousand in

1995.

Health indicators (2011)

Birth rate* 16.5

Death rate* 6.7

Infant mortality rate** 38.0Life expectancy at birth (years)

Male (2002-06) 66.5

Female (2002-06) 67.3

Sources: Himachal Pradesh Economic Survey 2012-13Ministry of Health and Family Welfare, Government of India,

Sample Registration System (SRS) Bulletin 2012(www.censusindia.gov.in)

*Per thousand persons, ** Per thousand live births

No of institutions 2012-13

Civil hospitals 54

Community health centers 76

Primary health centers 473

Sub-centers 2,066ESI dispensaries 11


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The Himachal Pradesh Sports Council oversees sports-related activities of the state.

The Indira Gandhi State Sports Complex provides training for judo, badminton, volleyball, gymnastics, table tennis, boxing,wrestling and martial arts. The complex also has a fitness and an aerobics facility.

Adventure sports, such as river rafting, para-gliding and trekking are popular, given the climate and topography of HimachalPradesh.

Key hotels in Shimla are the East Bourne Resort & Spa, the Wildflower Hall and the Oberoi Cecil. In Dharamshala, mainhotels are the Clubhouse and the Asia Health Resorts, while Hotel Kullu Valley and the Ambassador in Manali are known tobe the most popular hotels at Kullu-Manali.

Kangra Valley is considered as the cultural capital of Himachal Pradesh; it is home to Dharamshala and Mcleodganj, a hubfor Buddhist-Tibetan culture. The district has several Buddhist monasteries and Hindu temples.

The S.M. Convention Centre in Palampur is one of the largest of its kind in the state. It has 25 rooms, five banquet halls,seminar rooms and a board room.


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As of December 2012, there were 494 medium and large-scale industries and about 38,592 small-scale industries; with atotal investment of around US$ 3.1 billion, operating in the state.

Infrastructure Description

Industrial areasSet up at Baddi, Barotiwala, Parwanoo, Kala Amb, Paonta Sahib, Mehatpur, Tahliwal,

Amb, Sansarpur Terrace and Golthai, etc.

Baddi Barotiwala Nalagarh Industrial AreaThe industrial area has been promoted by the Ministry of Commerce and Industries,Government of India. It has emerged as a hub for textiles, pharmaceuticals andpackaging industries.

Biotechnology park The government has proposed to set up a biotechnology park at Nalagarh.

Nanotechnology park A nanotechnology park is proposed to come up on a 400-acre area near theBiotechnology Park at Aduwal near Nalagrah.

Inland Container Depot (ICD) An ICD is being developed at Baddi for the benefit of exporting industries throughContainer Corporation of India. A Memorandum of Understanding (MoU) has beensigned between Himachal Pradesh Government and Container Corporation of India.


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In an effort to provide infrastructure support to entrepreneurs, the Himachal Pradesh Government has developed 41industrial areas and 17 industrial estates.

Name andlocation00 Primary industry Description

BaddiPharmaceuticals

/textilesLocated in the Solan district, the Baddi industrial area has severalpharmaceutical, textile, auto ancillary, paper and printing units.

Barotiwala Multi-industry Located in the Solan district; hub for small scale industries.

Parwanoo Light engineering Located in the Solan district; the city is an industrial cluster for high-densitypolyethylene (HDPE) pipe companies.

Chambaghat ElectronicsLocated on the Shimla-Kalka highway in the Solan district, the industrial areahas prominent companies such as Himachal Futuristic CommunicationsLimited and Shivalik Bimetal Controls Limited.

Paonta Sahib Pharmaceuticals/

chemicals

Located in the Sirmour district, the industrial area has a number of

pharmaceutical and chemical companies.Tahliwal and Gagret Electronics Located in the Una district, it has prominent telecommunications companies.

Amb Industrial Area Engineering/auto Amb has prominent engineering and automotive companies such asInternational Cars and Motors Limited.

Sansarpur Terrace Engineering Located in the Kangra district, it has some of the leading engineeringcompanies of North India.

Golthai Multi-industry Located in the Bilaspur district, it has been identified as a mini growth centre.


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The rich natural resources of the state are favorably suitedfor investments in major sectors such as procurement of agricultural produce, hydroelectric power, cement andtourism.

Himachal Pradesh has made significant achievements in thefield of industrialisation in the past few years.

Solan, Sirmour, Kangra and Una districts lead in terms of investments attracted.

As of December 2012, there were 494 medium and large-scale industries and about 38,592 small-scale industries;with a total investment of about US$ 3.1 billion, operationalin the state. These industries provide employment to about0.21 million people.

Key industries in Himachal Pradesh

Textiles Pharmaceuticals Food procurement and processing Light engineering IT and electronics Cement Tourism Hydropower


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Agriculture is the main occupation and the major source of employment in the state, as 89.96 per cent of the population lives inrural areas.

The state government is focussing on increasing productivity levels besides diversification towards high-value crops.

Production of principal crops (in 000 tonnes) Production per hectare (in metric tonnes)

Source: Himachal Pradesh Economic Survey 2012-13,* Likely, ** Target

1.4

1.9 2.0 1.92.0

2009-10 2010-11 2011-12 2012-13* 2013-14**

2009-10 2010-11 2011-12 2012-13* 2013-14**

Rice Maize Wheat Barley Pulses

1,111

1,4941,554

1,450

1,580


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With suitable agro-climatic conditions, Himachal Pradeshhas realised the importance of commercial crops includingoff-season vegetables, potatoes and ginger.

The food processing industry is primarily focused in theareas of traditional processing of agricultural andhorticulture raw materials.

Agri-procurement has lately been an investment area for corporate entities.

Source: Himachal Pradesh Economic Survey 2012-13,* Likely, ** Target

Production of commercial crops ( in 000 tonnes)

2009-10 2010-11 2011-12 2012-13* 2013-14**

Potato Vegetables

Some of the key players

Cremica Group Adani Agri Fresh

Nestle India Dabur

1,391

1,475 1,510 1,570 1,590


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Agro-climatic conditions favor cultivation of temperate to sub-tropical fruits in Himachal Pradesh.

Accordingly, the land use pattern has shifted from agriculture to fruit crops in the past few decades. Area under fruits hasincreased to 214,574 hectares during 2011-12 compared to barely 792 hectares in 1950-51.

Apple remains the major fruit produced, constituting 83.9% to total fruits under cultivation.

Area under fruits (in 000 hectares) Production of fruits (in 000 tonnes)

Source: Himachal Pradesh Economic Survey 2012-13,*Upto December 2012

692 696

369

713628

382

1,028

373467

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Cremica Group

Adani Agrifresh Ltd

Nestle India

Dabur India Ltd

Cremica Group is a prominent player in food retail and food services industries in India. Thecompanys business activities include Cremica Frozen Foods, EBI Foods, Mrs Bectors Desserts and Cremica Agro India. The company is commissioning a plant at Tahliwal Industrial

Area, Una, for manufacturing biscuits and Indian snack foods. It is a 100 per cent automatedfacility, with a monthly manufacturing capacity of 5,000 tonnes of biscuits.

Adani Agrifresh, a 100 per cent subsidiary of Adani Enterprises, which had consolidatedrevenue of US$ 8.32 billion over 2011-12, has set up three controlled-atmosphere storage unitsat Rampur, Sainj and Rohru in Himachal Pradesh, with an investment of US$ 40 million and acombined capacity of 18,000 metric tonnes of apples per year. It is involved in the procurement,storage and transportation of fresh fruits and vegetables. The company is directly buying fruitsfrom about 4,000 farmers.

Nestle has a presence in India for almost a century, with seven production facilities across thecountry. The company produces chocolates and confectionaries, prepared dishes and cookingaids, beverages and milk products and nutrition. It generated revenue of US$ 1.53 billion in2012. The construction of Nestls factory in Tahliwal, Una, Himachal Pradesh, is underway.

Dabur is one of the countrys largest consumer goods companies. It generated revenue of US$1.1 billion over 2012-13. The company manufactures several products, including honey andamla, in Baddi.


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Himachal Pradesh is one of the fastest growing regions inthe pharmaceutical industry in India, driven by incentivesannounced by the state government in its Industrial Policy,2004.

Over 300 pharmaceutical companies, including Ranbaxy, Dr Reddys, Morepen and Torrent Pharmaceuticals, have set

up operations in the state.

The Department of Environment, Science & Technology(DEST), Government of Himachal Pradesh, proposes todevelop a Biotechnology Park (BTP) spread over an area of about 35 acres at village Aduwal in Solan under PublicPrivate Partnership (PPP) mode in the state. The park wouldhave a Biotechnology Incubation Centre and BiotechnologyIndustrial Cluster.


Ranbaxy Laboratories Ltd Cipla Ltd Dr Reddy's Laboratories Ltd Panacea Biotec Ltd


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Ranbaxy Laboratories Ltd

Cipla Ltd

Dr Reddy'sLaboratories Ltd (DRL)

Panacea Biotec Ltd

Ranbaxy is one of the leading pharmaceutical companies in India, with business operations in43 countries and manufacturing facilities in eight countries. It has a manufacturing facility atPaonta Sahib, Sirmaur. The company manufactures fermentation-based products such asLovastatin and Pravastatin. In 2008, Japanese conglomerate Daiichi Sankyo became thelargest shareholder in Ranbaxy. In 2012, the companys revenue was around US$ 2.3 billion.

Cipla has one of the largest product portfolios with over 1,000 products and revenue of aroundUS$ 1.5 billion over 2011-12. The company established a manufacturing facility in Baddi in

2005. The unit manufactures bulk drugs, tablets and capsules, creams, aerosols/inhalationdevices and injections/sterile solutions.

Established in 1984, Dr Reddys ranks among the top 15 generics players in the world. It is thefirst pharmaceutical company in Asia-Pacific (outside Japan) to be listed on the New York StockExchange (NYSE). It is a global pharmaceutical major with presence in over 25 countries.Overseas business contributed around 82.0 per cent to total revenue over 2011-12. It has apresence in therapeutic categories such as anti-infectives, cardio-vascular, diabetes,dermatological, pain management, nutritional, dental, urological and oncology. The companyhas a finished dosage facility in Baddi.

Panacea is one of Indias prominent pharmaceutical and biotech companies involved inresearch, manufacturing and marketing of pharmaceutical formulations. It generated revenue of US$ 145.55 million over 2011-12. As of March 2012, the company had filed around 1,500patents, of which 413 have been granted. The company has around 3,300 employees includingaround 275 scientists. Its pharmaceutical and vaccine formulations facility is located in Baddi,with a production capacity of 600 million doses per annum; the production is likely to beincreased to one billion doses per annum after the addition of the third line.


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The textiles industry in Himachal Pradesh is mainly focussedon spinning, with companies such as Vardhman engaged inweaving and dyeing.

Handloom and carpet weaving have developed as smallscale industries.

Low power tariffs in the state are encouraging growth in thetextile industry, with the knitwear industry emerging inHimachal Pradesh.

Indorama Industries has unveiled plans to expand itsspandex production capacity to 10,000 tons per annum by2014-end, as compared to the current capacity of 5,000

tons.

Himachal Textile Park Ltd, a subsidiary of Jindal Cotex Ltd,established a Textile Park in the state to provide land andnecessary infrastructure facilities to units set up in the park.Jindal Medicot Limited and Jindal Specialty Textiles Limitedhave already set up their technical textile projects in theTextile Park. More units are coming up in the near future toset up their technical textile projects.


Vardhman Group Winsome Group Birla Textile Mills Himachal Fibre Ltd


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Vardhman Group

Winsome Group

Birla Textile Mills

Himachal Fibre Ltd

The Group has a turnover of US$ 817.27 million. It has four state-of-the-art spinning facilities inBaddi, with a combined installed capacity of about 260,160 spindles. Its products include yarns,fabrics, garments, sewing threads and fibre. The company is among the largest producers andexporters of yarns and grey woven fabrics, tyre cord yarns and sewing threads. The companyhas also set up a finishing operation in Baddi under the name of Auro Textiles, which has aproduction capacity of 50 million meters per anuum.

Winsome Textile Industries Limited, part of the Winsome Group, has a spinning facility in Baddi.It produces yarns in a variety of shades in melange, package dyed and fibre-dyed yarns. Thecompany is planning to set up another spinning unit, with a production capacity of 40,800spindles and a circular knitting unit in Himachal Pradesh at an investment of approximately US$43.8 million.

Division of Chambal Fertilizers and Chemicals Limited, a flagship company of the KK BirlaGroup of companies, the companys Baddi plant has an installed capacity of more than 83,320spindles.

Established in 1982, the company manufactures multiple types of yarn such as cotton yarn,melange yarn, open-end yarn and blended yarn. It has a manufacturing unit in the Barotiwalaindustrial area, Solan, and generated revenue of US$ 21.6 million over 2011-12.


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The light engineering goods industry in Himachal Pradeshincludes precision engineering components, automotivecomponents, steel and fabrication units and cylinder manufacturing.

Kala Amb in Paonta Sahib has a large number of steelfabrication mills.

Auto component units are mainly based in Parwanoo (Solandistrict). A general and light engineering industrial cluster isalso located in Parwanoo.

International Cars and Motors Limited has a factory in Una.


Gabriel India International Cars and Motors Ltd Blue Star India TVS Motor Company


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Gabriel India

International Cars and

Motors Ltd

Blue Star India

TVS Motor Company

Gabriel is a flagship company of Anand Automotive Group; it manufactures ride-control systemsand engine bearings. The company supplies to all three segments of the market: originalequipment, aftermarket and exports. It produces 20 million units per annum.

In 2007, Gabriel set up a plant in Parwanoo. The plant manufactures shock absorbers for commercial vehicles and two wheelers, struts for passenger cars and front forks for motor cycles.

ICML is a subsidiary of the Sonalika Group. It sells multi-utility vehicles under the Rhino brand.The company has an installed capacity of 2,000 vehicles per month, a state-of-the-art facility atUna and a technical collaboration agreement with MG Rover of the UK. The Sonalika Groupintends to invest US$ 219 million in Himachal Pradesh during 2011-14.

Blue Star is one of Indias largest air conditioning companies. It generated revenue of US$581.73 million over 2011-12. The company employs 2,785 people in six manufacturing facilitiesacross the country. In 2005, Blue Star set up a 14,000 sq m manufacturing unit in Kala Amb.

TVS Motor is one of the largest two-wheeler manufacturers in India. It generated revenue of US$ 1,300.87 million over 2012-13 and had around 4,405 employees. During 2007-08, thecompany began operations at its new plant in Nalagarh.


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Himachal Pradesh has ample availability of qualitylimestone; the state supplies almost half of its cementproduced to other states.

Five cement plants at Barmana, Bilaspur (two units),Kashlog, district Solan (two units) and Rajban districtSirmour (one unit) and one major cement plant in Baga-Bhalag of Solan district are under operation in the state.

Reliance Cement Company was recently granted aprospecting license to set up a cement plant based onlimestone, shale and quartzite.

Memoranda of Understanding (MoUs) have been signed for

the establishment of major cement plants by M/s HarishCement (Grasim) at Sundernagar (Mandi district), M/s IndiaCements Limited at Gumma-Rohaha (Shimla), and M/sLafarge India Limited at Alsindi (Mandi).

The Government of Himachal Pradesh has signed an MoUwith Jaypee Industries to establish a large cement plant atBroh Shind (Chamba district).

Key players

ACC Ltd Ambuja Cements Ltd Jaypee Cements


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ACC Ltd

Ambuja Cements Ltd

Jaypee Cement

ACC is one of Indias foremost manufacturers of cement and concrete, with 14 cement factories.It has a plant, Gagal Cement Works, in Bilaspur. In September 2009, Himachal Pradesh allowed

ACC to generate electricity using waste exhaust from kiln gases, an environmentally-friendlymethod.

Ambuja Cements is among the large cement companies in India, with an annual combinedcapacity of 27.35 million tonnes. It has an installed capacity of 2 million tonnes per annum(MTPA) in Darlaghat (Solan district). The company inaugurated its third cement plant in

Nalagarh, with a production capacity of 1.5 million tonnes. It also set up a new clinker production facility, with a production capacity of 2.2 million tonnes, in Rauri in 2010.

Jaypee Cement has an aggregate annual capacity of 28 million tonnes per annum and isamong the largest cement producers in the country. The company has aggressive expansionplans and is targeting an annual production capacity of 35.9 million tonnes by 2013. Jaypee hasa cement blending unit in Nalagarh, with a production capacity of 2.5 million metric tonnes.


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Himachal Pradeshs IT policy and incentives offered to the ITindustry are aimed at promoting the state as an attractivedestination for the industry.

The state has proposed to set up information technologyparks, and several incentives are being offered to IT firms.

Software Technology Parks of India (STPI) has establisheda centre in Shimla.

During 2010-11, software exports made by registered unitsthrough STPI was US$ 0.19 million.

The state has launched a venture capital fund dedicated to

the IT industry, with a corpus of around US$ 4.2 million. It isfunded jointly by Small Industries Development Bank of India (SIDBI) and other state government agencies.


Himachal Futuristic Communication Ltd Microtek International WeP Peripherals Ltd Spice Mobile


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Himachal FuturisticCommunications Ltd

(HFCL)

Microtek InternationalPvt Ltd

WeP Peripherals Ltd

Spice Mobile

HFCL is a leading telecom equipment manufacturer, particularly into transmission equipment,optical-fibre cables, accessories and terminal equipment. It has a manufacturing facility atSolan. The total employee strength of the company was 973, as of March 2012. The company isamong the first Indian telecommunication companies to have successfully subscribed a GlobalDepository Receipts (GDR) issue. The company has participated and executed various nationaland international turnkey projects in the fields of satellite & radio communication, CDMA mobilenetworks, optical transport networks and spectrum management solutions.

Microtek International is an IT peripherals and power products company. It has set up amotherboard manufacturing facility in Parwanoo, with a capacity of 50,000 motherboards per month.

Established in 2000, WeP Peripherals (earlier Wipro Peripherals) started manufacturing dot-matrix printers. It has now diversified into retail solutions, energy solutions and printingsolutions. The company has a state-of-the-art manufacturing facility in Baddi, with a productioncapacity of more than 650,000 products per annum.

Spice Mobile, a subsidiary of the Spice Group, is among the largest mobile handsetmanufacturers in India. The company has a manufacturing facility in Baddi, where it beganmobile handset production in March 2010. Spice Mobile accounts for around 4.0-5.0 per cent of the mobile devices market in India.


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Destination No of tourists*(in million)

Shimla 3.4

Kullu 3.2

Kangra 2.3

Una 1.1

Bilaspur 1.0

Chamba 1.0

Sirmaur 1.0

Solan 0.9

Mandi 0.8

Hamirpur 0.7

Kinnaur 0.5

Lahaul & Spiti 0.4

Tourism is one of the most important sectors for the stateeconomy in terms of foreign exchange earnings andcreation of employment opportunities.

Himachal Pradesh is endowed with topographic diversity,historical monuments and religious shrines.

As of December 2012, there were 2,247 registered hotels inthe state.

Top touristdestinations

No of registered hotelsand guest houses

Kullu 613

Shimla 397

Kangra 379

Solan 204

Chamba 145

Source: Ministry of Tourism, Government of India, Himachal PradeshEconomic Survey 2012-13, *Tourist arrivals for 2012


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The government introduced a home-stay scheme in 2008 that aims at providing clean and comfortable accommodation to touristsin rural areas in the vicinity of famous tourist destinations where hotels are packed to capacity.Consequently, tourist inflows in the state increased to 16.1 million in 2012 from 11.4 million in 2009, implying a CAGR of 12.2 per cent.To boost tourism, the state plans to set up a golf course and improve connectivity through setting up of further helipads.

Number of domestic tourists (in millions) Number of foreign tourists (in 000s)

Sources: Ministry of Tourism, Government of India, HimachalPradesh Economic Survey 2012-13

401454

485 500

2009 2010 2011 2012

11

13

1516

2009 2010 2011 2012


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Single-Window Clearance Mechanism (SWM) wasestablished in 2004. It has a two-tier structure.

District Single Window Clearance Committee for each district in the state is chaired by GeneralManager/Member Secretary, with senior-mostofficers of departments concerned in the district asmembers.

State-level agency with Chief Minister of HimachalPradesh as Chairman and various heads of departments as members.

Approval for proposals with investments of over US$1.09 million, power requirement of above 1 MW andindustries in the negative list (such as forest-basedand mining); as defined by central and stategovernments, are decided by the state-level Single-Window Clearance Agency.

SWM structure in Himachal Pradesh

State-level SingleWindow Clearance

and Monitoring Authority

Chief Minister of Himachal Pradesh

GM-DIC/Member Secretary

District-level SingleWindow Clearance

Agency

Source: Industries Department, Government of Himachal PradeshGM: General Manager, DIC: District Industrial Centre


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Single Window Clearance and Monitoring Agency: State-Level Nodal Agency

Purpose Composition

Provides first approval to medium and large scale investmentproposals between 30-60 days of submission.

Projects above US$ 1.09 million, power requirements above 1MW and industries in the negative list (such as forest-basedand mining) as defined by central and state governments areapproved by the agency.

The Chief Minister of Himachal Pradesh is Chairman of theagency; other members include heads of the departments of town and country planning, labour, electricity, water, director of industries and industrial adviser.

District Industry Centre (DIC): District-Level Committee for Single-Window Clearance

Purpose Composition

Provides sanctions and clearances for setting up small scaleindustrial units.

Convened by the General Manager, DIC or member secretary,Single Window Clearance and Monitoring Agency.

Source: Industries Department, Government of Himachal PradeshMW: Mega-Watt, DIC: District Industrial Centre


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Agency Description

Single-windowclearance agency

Agency for speedy clearance and in-principle approval to large and medium scale projects.

Time frame for approval is 30-60 days.

Since inception in 2004, 60 meetings have been held, and 898 projects with an investment of US$6.41* billion have been approved up to March 2012.

Himachal PradeshState Small

Industries andExport Corporation

Supply of raw materials through appropriate depots.

Supply of machinery on hire-purchase.

Provision of assistance in export and marketing.

Himachal PradeshFinancial

Corporation

To provide medium and long-term loans as well as working capital loans to small and mediumscale units under various schemes.

To provide loans for expansion, modernisation and rehabilitation of existing units.

*US$1=45.19 (Average rate for 2004-12)


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Agency Description

Directorate of Industries

Registration of Small Scale Industries (SSI) and recommendation of medium and large scaleindustries to the appropriate authority.

Technical and general consultancy.

Recommendation for financial assistance to financial institutions/banks for margin money and

loans.

Industrial infrastructure development.

Collection and maintenance of data relating to industrial units.

Allotment of industrial plots, sheds and shops in districts.

Liaison with and provide feedback to central and state governments.

Administration of all incentives to industries given by central and state governments.


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Agency Contact information

Himachal Pradesh Industries Department

Udyog BhawanShimlaPhone: 91-177-2813414E-mail: [email protected]: http://himachal.nic.in/industry/welcomelat.htm

Himachal Pradesh State Industrial DevelopmentCorporation Limited

New Himrus BhawanCircular RoadShimlaPhone: 91-177-2624751, 2621426Fax: 91-177-2624278E-mail: [email protected]: http://www.hpsidc.nic.in


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Approvals and clearances required Departments to be consulted

Prior to setting up the unit

Registration District Industry Centre for SSI or Large and Medium Industries

Allotment of land/shed State Department of Industries/Infrastructure Corporation

Permission for land use District authorities, Department of Town and Country Planning

No Objection Certificate under Water and Air Act Himachal Pradesh State Pollution Control Board

Approval for construction activity and building plan Town and Country Planning Authority

Site environmental approval State Pollution Control Board and Ministry of Environment andForests

Provisional trade tax registrations Central and State Excise Departments

Registration under Central Sales Tax Act Central and State Excise Departments

Source: Commissionerate of Industries, Government of Himachal Pradesh


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Approvals and clearances required Departments to be consulted

Before commencement of production

No Objection Certificate under Water and Air Act Himachal Pradesh State Pollution Control Board

No Objection Certificate Fire Department and Directorate of Factories and Boilers

Permanent trade tax registration Central and State Excise Departments

Registration under Central Sales Tax Act Central and State Excise Departments

After commencement of production/activity

Registration Department of Industries and respective sector departmentssuch as Information Technology/Biotechnology, etc.

Source: Commissionerate of Industries, Government of Himachal Pradesh


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Parameter Cost estimate

Industrial land (per sq ft)Baddi Industrial Area: US$ 15-50Other Industrial Areas: US$ 12-35

Office space rent(per sq ft per month)

US 10 cents to US$ 8

Residential rent(1,600 to 2,500 sq ft house)

US$ 250-900 per month*

Hotel costs (per room, per night) US$ 30-210

Power (per kWh)Small and medium industries: US 8.3-8.7 centsLarge industries: US 7.5-8.7 cents

Labour (minimum wage per month) US$ 63-103

Water (per kl) Domestic: US 16.2 centsCommercial: US 32.6 cents

Sources: Directorate of Industries, Ministry of Labour and Employment, Government of India,Himachal Pradesh Irrigation and Public Health Department, Himachal Pradesh State Electricity Board

Ltd, Industry sources*Shimla or Kullu Manali

kl: kilolitre


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Industrial Policy 2004

To develop infrastructure with lesser number of regulations and provide speedy clearance of newprojects.

Read more Objective

Tourism Policy 2005

To make tourism the prime engine of economic growth by positioning the state as a leadingglobal destination by 2020.

Read more

Objective

IT Policy 2001

Action plan to harness potential benefits offered by IT. To use IT for heralding world class e-tourism in the state.

Read more

Objectives
http://himachal.nic.in/industry/NewIndustryPolicy2004.pdfhttp://himachaltourism.gov.in/file.axd?file=2010/4/Tourism+Policy+2005.pdfhttp://himachaldit.gov.in/test/file.axd?file=2009/3/ITPolicy.pdfhttp://himachaldit.gov.in/test/file.axd?file=2009/3/ITPolicy.pdfhttp://himachaltourism.gov.in/file.axd?file=2010/4/Tourism+Policy+2005.pdfhttp://himachal.nic.in/industry/NewIndustryPolicy2004.pdf


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Hydro Policy

To focus on capacity addition, energy security, access and availability, affordability, efficiency,environment and local employment.

Read more Objective
http://www.hpseb.com/hydro_policy.htmhttp://www.hpseb.com/hydro_policy.htm


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Average for the Year

Year INR equivalent of oneUS$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

2012-13 54.31

Exchange rates


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India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been preparedby Aranca in consultation with IBEF.

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. Thesame may not be reproduced, wholly or in part in any material form (including photocopying or storing it in anymedium by electronic means and whether or not transiently or incidentally to some other use of this presentation),modified or in any manner communicated to any third party except with the written approval of IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of thispresentation to ensure that the information is accurate to the best of Aranca and IBEFs knowledge and belief, thecontent is not to be construed in any manner whatsoever as a substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned inthis presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission onthe part of the user due to any reliance placed or guidance taken from any portion of this presentation.

himachal pradesh - august 2013

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