Key Industries and Growth Potential in Key Sectors
The pattern of industry in Uttaranchal in terms of the shares of different
segments in gross value added (GVA) of the state.
|
Share of Industries (Manufacturing) in Uttaranchal (2002-03) |
|
Industry |
Share in GVA (2002-03 QE) |
|
Manufacture of Machinery & Equipment n.e.c. |
32.8 |
|
Manufacture of Rubber and Plastic Products |
10.7 |
|
Manufacture of Paper and Paper Products |
10.0 |
|
Manufacture of Chemicals and Chemical Products |
9.7 |
|
Manufacture of Electrical Machinery & Apparatus n.e.c |
9.5 |
|
Manufacture of Food Products and Beverages |
8.9 |
|
Manufacture of Medical, Precision and Optical Instruments, Watches and Clocks |
5.4 |
|
Manufacture of Radio, TV and Communication Equipment and Apparatus |
4.3 |
|
Manufacture of Basic Metals |
2.8 |
|
Total |
94.1 |
Source: Annual Survey of Industries
Traditional Industries -Handicrafts, Handloom, Wool Based Industry, Khadi &
Village IndustriesUttaranchal is host to several handicrafts industries like carpet weaving, woodcarving, brassware and copper based
industries. The state plans to revive
these industries to ensure adequate backward and forward linkages by way of centrally sponsored schemes. Handloom industry is critical for employment
generation in rural areas. The state of Uttaranchal plans to tap the potential of these skill-rich industries by way of infrastructure support, training, design
development, new techniques, packing, marketing events and exhibitions.
|
New Looms Acquired & Looms Modernised in Uttaranchal
(2000-01 to 2002-03) ('000 USD) |
|
Year |
No. of Looms, Dobbies, Jacquards,
Accessories Sanctioned |
Amount Sanctioned |
|
2001-02 |
742 |
46.11 |
|
2002-03 |
563 |
36.81 |
|
Performance in Khadi and Village Industries
(Production, Sales
and
Earnings-'000 USD) (Empl. in Lakh Person) |
|
Year |
Production |
Sales |
Employment |
Earnings |
|
2000-01 |
673.0 |
844.2 |
0.02 |
4.6 |
|
2001-02 |
9735.1 |
7147.0 |
0.32 |
2999.5 |
|
|
Source: Indiastat
Wool and wax based industry and khadi and village industries are some of the key traditional industries operating in the
state. While the wax-based industry
is an important handicraft industry in the hill regions of the state, large section of the population in the state is associated with the wool based
industry. The State has assigned due priority to develop these industries to their potential.
5.1.2 BiotechnologyBiotechnology is the emerging thrust area at the global level and is poised to make significant contributions in agriculture, human and animal health care,
environment management and process industries. Being host to vast diversity of flora and fauna and rare species of plants and animals, gives Uttaranchal a
natural advantage in the sector.
A high-level biotechnology board is being setup to pursue initiatives in the field of research.
The state of Uttaranchal will accord the units coming under this sector with the industry status and aims to establish an internationally competitive
business infrastructure and environment for the industry in thes tate. Further, a biotechnology park is to be developed that will integrate resources and provide
a focused institutional set up for accelerated commercial growth of bio-technology and bio-informatics.
Information TechnologyGiven the state's high literacy rate and concentration of high quality educational institutions across the districts, Uttaranchal has the potential for
developing as a preferred destination for IT and ITES along with hardware production. Beside this, with the establishment of an STPI earth station at
Dehradun and proposed Earth Station at other locations, the state offers high-speed connectivity.
The state has come up with incentives for the industry like exemption on electricity duty on generator sets, stamp duty concessions and rationalisation
of land use and conversion charges.
A dedicated IT park in Dehradun is coming up while others are set to follow in other parts of the state.
Industry based on Herbal and Medicinal Plants Uttaranchal is host to a vast variety of rare species of herbs, medicinal plants and aromatic plant species.
Significant value addition can be made in the industry to exploit the vast potential in the sector.
Uttaranchal's focused approach to development opens up growth opportunities both in the industrial and services sectors. Some of the key areas of growth are:
Manufacturing
The huge potential for hydel power generation (It is estimated that Uttaranchal can generate 15,000 MW of power in the state) and consequently the
possibility of a ready supply of cheap power makes the state an ideal destination for manufacturing investment across a whole range of
sectors. The
initiatives in buffering the industrial infrastructure (Refer Section 3.6) and the key investments (Refer Section 5.4) clearly add to the
attraction of the state as a manufacturing base. High literacy rates and the presence of high quality educational institutions would ensure a ready supply of low cost, good quality labour.
Tourism
The combination of a vast pool of resources and initiatives to improve infrastructure should give tourism a boost in the medium to long term. During
January 2004, a total of 4.70 lakh tourists arrived in Uttaranchal of which 4.67 lakh were domestic tourists. During 2003, total domestic tourists in the State
increased by 11 per cent as against that in 2002, the foreign tourist inflow grew by more than 13 per cent during the period.
With the coming up of several industries and the associated residential and commercial facilities, there will be massive revenue generation, leading to
overall development of the Integrated Industrial Estate and Uttaranchal at large.
Current Investment Inflow
|
Industrial Investment Inflow (Cumulative Since August 1991) |
|
Period August
1991 to |
Total
Proposals |
Proposed
Investment
(US$million) |
Proposed Employment
(Nos.) Earnings |
|
|
IEM + LOI |
IEM + LOI |
% Share |
IEM + LOI |
% Share |
|
Mar 01 |
292 |
1503 |
0.5 |
52888 |
0.7 |
|
Mar02 |
314 |
1634 |
0.55 |
56187 |
0.65 |
|
Mar03 |
348 |
1764 |
0.56 |
61419 |
0.68 |
|
Mar04* |
490 |
2087 |
0.59 |
76422 |
0.69 |
|
Nov04 |
596 |
2561 |
0.65 |
90188 |
0.77 |
The state's initiative in attracting investment appears to have paid off in attracting industrial investment. During August 1991 to March 2001, Uttaranchal
attracted a total of 292 Industrial Investment Proposals. The total industrial investment proposals jumped to a total of 490 proposals till March 2004, significantly up from 348 in March 2003 and 314 in March 2002. Consequently, Uttaranchal's share of proposals in the national aggregate increased
considerably from 0.64 per cent till March 2001 to 0.9 per cent during August 1991 to March 2004. During April to November 2004, the total number of proposals
stood at 596.Though the bulk of these investments are from domestic sources, the ramp-up of industrial infrastructure is bound to translate into some interest
from foreign direct investors in the near future.
Source: Department of Industrial Policy and Promotion
The investment inflow generated 52888 employment opportunities in the state during August 1991 to March 2001.The investment proposals during April to
November'04 is proposed to generate 90188 employment opportunities in the state.
Business Opportunities in Uttaranchal
The
creation of infrastructure itself within the state offers tremendous potential for
private investment. For a potentially power- rich state, the generation,
transmission and distribution of power provide vast investment opportunity.
Significant opportunities are available for the construction of industrial
parks, specialised production zones for IT.
Tourism: Uttaranchal offers immense opportunities for development of a vast array of tourist facilities particularly in the areas of eco and health
tourism.
Agro and Forest Based Industry: Since a significant portion of Uttaranchal is under forest cover thus offering excellent potential for the
development of forest resources based industries in the state. Ample opportunity also exists to develop agro-waste industries. Uttaranchal is host to all major
climatic zones that makes the state suitable for food preservation and
floriculture. This together with minimum temperature and chill factor conditions
provide abundant opportunities in setting up cold chain technologies, rootstock cultivation and processing, horticulture farms, food processing industry,
contract farming herbal and medicinal plants cultivation
Knowledge-Based Industry: High literacy levels coupled with the presence of quality educational institutes make the Uttaranchal ideal for the
location of sunrise industries such as biotechnology and IT. The state government is actively promoting supporting infrastructure.
Key Investments
Within the short span of its existence, Uttaranchal has emerged as a significant destination for investments in manufacturing industry, tourism and
infrastructure. Some of the key investments in the state:
Investor consortium to develop tourism hub in UttaranchalThe Uttaranchal Tourism Development Board (UTDB), has tied up investments from the investor consortium comprising Asian Hotels Ltd - owners of Hyatt
Regency Hotels in India; Chescor Capital, UK - investment boutique specialising in corporate and project finance in the Middle East and the Indian sub -
continent and Fair - wood Consultants Private Ltd. The project envisages Greenfield development of a tourism hub in the Kumaon hills on 325 hectares of
land entailing investment in excess of USD 103 million by the private party.
Uttaranchal as Mahindra & Mahindra's three-wheeler manufacturing base Mahindra & Mahindra Limited (M&M) is the flagship company of around USD 1653
million Mahindra Group, which has a significant presence in key sectors of the
Indian economy. A consistently high performer, M&M is one of the most respected companies in the
country. The company has, over the years, transformed itself
into a Group that caters to the Indian and overseas markets with a presence in vehicles, farm equipment, information technology, trade and finance related
services, and infrastructure development.
M&M proposes to set up a three - wheeler manufacturing facility and ancillaries in the
State. The proposed project would involve a capital outlay of
USD 10.3 million and spread over 50 acres of land at Integrated Industrial Estate of BHEL,
Haridwar. The company also has a satellite plant in the state at
Rudraprayag.
Asahi to set up unit in UttaranchalAsahi India Glass, India's largest glass manufacturer has decided to invest about USD 130.30 million to set up a
manufacturing facility in the state. Asahi will be one of the biggest investors in the non-power sector in the state.
Uttaranchal to host Hero Honda's manufacturing baseHero Honda plans to invest USD 124 million in Uttaranchal for expanding manufacturing capacities and also diversifying into making
scooters. The new
plant, the source added, will have the flexibility to produce both motorcycles and
scooters. The base is also expected to generate 1,500 jobs as part of this
expansion and diversification.
Medicinal and Aromatic Plants Sector to Receive Significant InvestmentMaharishi Ayurveda Products Ltd (MAPL) has decided to inject USD 15.23 million in the State.This would be State's single biggest investment in
medicinal and aromatic plants sector. MAPL has bought six acres at Haridwar Industrial Estate and intends to install capacity of 300 tonnes of tablets, 300 tonnes of
powder, 400 tonnes of paste and 500 tonnes of syrup at this project.
Uttaranchal to receive USD 57.65 million investment to promote bamboo plantation
The Delhi-based Eland International Private Ltd. has signed a pact with the State Government to provide plantation material to 'panchayats' and
motivate people to grow bamboo. The company would invest USD 57.65 million to promote plantation of bamboo and its products in the
State. This is a buy-back
agreement, which will involve private and public participation for plantation of 1,50,000 acres of bamboo.
IT Park to promote IT and ITES in Uttaranchal A dedicated IT Park is coming
up in the capital city of Dehradun over 40 acres of land area.The park will host large number of ITES, software companies. Apart from boosting demand drivers of
the state economy the presence of the IT Park is expected to enhance commercial real estate demand in the State.
Promoting Private Industrial Estate in Uttaranchal
State Industrial
Development Corporation of Uttaranchal Ltd. and Purshotam Industrial Estate (P) Ltd has signed a MOU for promoting private industrial estate in Roorkee.
Purshotam Industrial Estate (P) Ltd is planning to set up an Industrial Estate over 60 acres of land in Roorkee for developing and setting up of industries by
individuals, corporate, etc. SIDCUL will act as a facilitator to Purshotam Industrial Estate (P) Ltd in the proposed Industrial Estate Development Project,
which will be set up on Build, Own and Operate basis.
Atlas Cycle Limited takes up USD 6.53 million projectAtlas Cycle Haryana Limited booked 10 acres of industrial plot in BHEL Industrial Estate for a project on cycle and axillaries with an investment of over USD 6.53 million.
Uttaranchal as one of the biggest manufacturing facility base of air conditionersLG Electronics India Private Limited has set up a world class and one of the biggest manufacturing facility for producing window split and commercial air conditioners, in Sela Qui, Dehradun, with a total investment of USD 2.18
million. The company expects to manufacture around three lakh units in 2004.While the total turnover is expected to be of USD 87 million, 500 local people have been employed in them.
Britannia to set up Greenfield project in UttaranchalBritannia Industries Ltd is in the process of setting up a Greenfield project in the
State. The project cost is estimated to be USD 12 million and will help it augment the biscuits capacity.
Key Players in the State
Some of the key industries that currently operate in the State are:
Bharat Heavy Electricals Limited (BHEL) BHEL is one of the leading power generation equipment manufacturers in the
world. The company holds a capacity to
produce 6000 MW of equipment-bigger than the Indian market. BHEL offers comprehensive service to its customers in Conventional and Non-Conventional
Energy, Industry, Transportation, Telecommunication and Oil sectors.
Century Textiles and Industries (CTIL)B K Birla group flagship, Century Textiles and Industries has diversified itself into rayon yarn, tyre cord,
minerals & chemicals, cement, pulp & paper and shipping from just a textile
mill. The company located at Lalkua (Nainital district) has provided direct and
indirect employment to the people of the surrounding areas. With a human resource base of around 2500 people, Century Pulp & Paper has brought in a
favourable impact on the socio-economics of the region. The company has immensely contributed to the National Exchange and is adding to the quality of life and standard of living.
SuryaSurya set up its first factory for lighting products at Kashipur (in Nainital) in 1984.Today Surya is India's second largest manufacturer of lighting products.
Its steel tube manufacturing plant is one of the largest in Asia. The company maintains its leadership in the export of fluorescent tubes and has achieved
high brand visibility in 45 countries across the globe.
The state-of-the-art lighting plant was accorded the ISO 9002 certification in the 1980s at a time when the Indian industry was not familiar with such
innovative concepts. Surya is the only lighting company with 100 per cent backward integration; it manufactures all its components.
India GlycolsIndia Glycols promoted by the Bhartias is presently the only producer that manufactures Mono Ethylene Glycol (MEG) using the non-petroleum route in the
country. The company was the first to install an elaborate and efficient system for treating distillery spent wash to safeguard the
environment. The company is
based in the industrial Kashipur tehsil of Udham Singh Nagar district.
Eureka ForbesEureka Forbes- a joint venture between Forbes Gokak and Electrolux AB of Sweden was set up in 1982 to market health and hygiene products to Indian
consumers. The state of Uttaranchal houses one of the three manufacturing facility of the company at Bhimtal.
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