JHARKHAND - Business Opportunities in India: Investment ...

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www.ibef.org JHARKHAND December 2007

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J H A R K H A N DDecember 2007

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JHARKHAND INVESTMENT CLIMATEJHARKKHAND • December 2007

Investment Climate of a State is determined by a mix of factors

Regulatory Framework

• Procedures for entry and exit of firms

• Industrial regulation, Labour regulation, other Government regulations

• Certainty about rules and regulations

• Security, law and order situation

Resources/inputs

• Skilled and cost effective labour

• Labour market flexibility

• Labour relations

• Availability of natural resources

Regulatory Framework

Investment Climate of a State

Resources/InputPhysical &

Social Infrastructure

Incentives to Industry

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JHARKHAND INVESTMENT CLIMATEJHARKKHAND • December 2007

Investment Climate of a State is determined by a mix of factors

Physical & Social Infrastructure

• Condition of physical infrastructure like Power, Water, Roads etc

• Information infrastructure such as Telecom, IT, etc

• Social infrastructure like Educational and Medical facilities

Incentives to Industry

• Tax incentives and exemptions

• Investment subsidies and other incentives

• Availability of finance at cost effective terms

• Incentives for FDI

• Profitability and incentives to industry

Regulatory Framework

Investment Climate of a State

Resources/InputPhysical &

Social Infrastructure

Incentives to Industry

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Focus of this presentation

• Jharkhand’s performance on key socio-economic indicators

• Availability of Social and Physical Infrastructure in the state

• Policy framework and investment approval mechanism

• Cost of doing business

• Key industries and players

JHARKHAND INVESTMENT CLIMATEJHARKKHAND • December 2007

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JHARKHAND’S PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS

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1412 1816

Jharkhand’s economy is primarily Agriculture based

• The state’s GDP grew at 12.40% between 1999-00 and 2006-07 to reach US$ 16.61 billion

• The Primary sector has grown with a CAGR of 7.32%, due to growth mainly in Forestry & Logging sector

JHARKHAND’S PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORSJHARKKHAND • December 2007

Source: Jharkhand Department of Planning & Development

Jharkhand

CAGR12.40%

1086420

7.331999-00

6.642000-01

7.292000-02

8.372000-03

12.582000-05

13.992000-06

9.722000-04

16.612000-07

(US$ billion)

1999-00

2006-07

Percentage Distribution of GSDP

n Primary Sector n Secondary Sector n Tertiary Sector

Source: Jharkhand Department of Planning & Development

29.4% 34.9%

7.32% 10.07

35.6%

23.6% 17.0% 34.2%42.2%

13.78%

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Jharkhand’s economy is primarily agriculture based

• Secondary sector is the fastest growing sector, growing at a CAGR of 13.78%. Manufacturing sector is the main contributor to this sector growing at a CAGR of 15.29%.

• Contribution of Tertiary sector to the GSDP has decreased marginally

JHARKHAND’S PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORSJHARKKHAND • December 2007

Distribution of Households by Income (%)

Source: The Market Skyline of India 2006 by Indicus Analytics

n Jharkand n India

Urban

>US$ 6667

US$ 3331-6667

US$ 1668-3330

<US$ 1667 12.1

22.126.1

35.439

23.322.7

19.2

0 5 10 15 20 25 30 35 40 45

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Households in the state have lower incomes as compared to the rest of the country

• The per capita income of Jharkhand was US$ 338.45 in 2004-05, while the All-India Average was US$ 514.2

• Distribution of Households by Income shows that share of households in higher income categories in Jharkhand is almost the same as for All-India in Urban area and substantially low in Rural households

JHARKHAND’S PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORSJHARKKHAND • December 2007

Distribution of Households by Income (%)

Source: The Market Skyline of India 2006 by Indicus Analytics

n Jharkhand n India

Rural

>US$ 6667

US$ 3331-6667

US$ 1668-3330

<US$ 1667 46.2

14.932.5

7.916.8

1.54.6

75.7

0 10 20 30 40 50 60 70 80

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Households in the state have lower incomes as compared to the rest of the country

• A comparison of asset ownership by households in Jharkhand vis-à-vis all-India shows that there is a great deal of scope of market expansion as the state’s moves towards Economic Development.

JHARKHAND’S PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORSJHARKKHAND • December 2007

Four-wheelers

Source: The Market Skyline of India 2006 by Indicus Analytics

2%

4%All- India

Percentage of households with

0 .5 1 1.5 2 2.5 3 3.5 4 4.5

Jharkhand

TelevisionPercentage of households with

Source: The Market Skyline of India 2006 by Indicus Analytics

24%

41%All- India

0 5 10 15 20 25 30 35 40 45

Jharkhand

Two-wheelers

Source: The Market Skyline of India 2006 by Indicus Analytics

14%

18%All- India

Percentage of Households with

0 2 4 6 8 10 12 14 16 18

Jharknand

90

Electricity

Source: The Market Skyline of India 2006 by Indicus Analytics

32%

64%All- India

Percentage of Households with

0 10 20 30 40 50 60 70 80

Jharknand

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• With 40% of country’s mineral wealth, Mineral Extraction is the main Industry in the State

• Minerals ranging from Iron ore, Coal, Copper ore, Mica, Bauxite, Manganese, Limestone, China clay, Fire clay, Graphite, Kainite, Chromite, Asbestos, Thorium, Sillimanite, Uranium, Gold, Silver and several others are found in the state.

• As per 2007 data, there are 163,220 Small Scale Units (registered and unregistered) in the state

Industries are based mainly on the Natural Resources in the State

JHARKHAND’S PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORSJHARKKHAND • December 2007

Main Minerals

• Iron Ore

• Manganese

• Mica

• Aluminium

• Uranium

• Bauxite

• Coal

• Tin

Key Industries in Jharkhand

• Engineering (Machining Fabrication)

• Mines & Mineral Based

• Plastics & Rubber

• Chemical Industries

• Food and Beverages

• Pharmaceuticals

• Electrical & Electronics

• Iron and Steel (Casting & Rolling)

• Handloom

• Paper, Printing & Packaging

• Metallurgy (Foundry & Forge)

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AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE

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Skilled as well as Unskilled labour is available in the State

AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATEJHARKHAND • December 2007

• As per Census 2001, of the total population of 26.9 million in the state, 10.1 million comprised the workforce. Of this workforce, about 64% were main workers

• As of year ending December 2005 about 150 thousand people in Jharkhand were employed in the Private Organised sector

• Employment in Service and Industrial sectors is largely limited to urban industrial pockets of the state

• Most of the workforce is engaged in Agriculture; wage labour, major and minor Forest produce-based livelihood, Animal husbandry, Household industry, Mining and Quarrying

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Social infrastructure in the form of Educational Institutes and Medical Institutions is strong

Education Infrastructure

• The state has more than 16,500 Primary schools and over 4900 upper primary schools

• Jharkhand has 8 Universities, 22 Colleges for professional education and 8 Medical colleges.

• Birla Institute of Technology, Ranchi, National Institute of Technology, Jamshedpur and the Indian School of Mines (ISM Dhanbad) are well known engineering colleges

Health Indicators

Jharkhand All-India

Birth rate* 26.2 24.1

Death rate* 8 7.5

Infant mortality rate** 49 58

*Per thousand persons

**Per thousand live births

Life expectancy at birth (years)

Male*** 62.9 64.1

Female*** 62.3 65.4

***Based on figures of Bihar and Orissa

Source: Statistical Abstract of India, SRS 2006

AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATEJHARKHAND • December 2007

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Social infrastructure in the form of Educational Institutes and Medical Institutions is strong

Medical Infrastructure

• Jharkhand has 4,462 health Sub-Centres, 368 Additional Primary health Centres (APHCs), 193 blocks Primary Health Centres (PHCs), 37 Referral hospitals, 22 District-level hospitals, 10 Sub-division hospitals, and 3 Medical college hospitals

• The state government has started the Sahiyya Movement, a community based approach to provide health care services in the state along with NGOs

AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATEJHARKHAND • December 2007

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Jharkhand presents an opportunity in the banking sector

• As per the World Bank report on Jharkhand, the state has a high level of per capita commercial bank deposits (US$ 101.38);

• The average population per bank branch at the end of June 2006 for commercial banks was 20,000, which was greater than the All-India level of 16,000

Financial Institutions in Jharkhand*

Primary Agricultural Credit Societies 208

Indian Commercial Banks 1,531

Co-operative Banks 115

*As on 31st March 2006; Source: Reserve Bank of India

AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATEJHARKHAND • December 2007

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Transport Infrastructure is adequate and is also being upgraded

Roads

• Jharkhand has National Highways measuring 1600 km and State Highways measuring over 2711 km

• Participation of Private sector is being encouraged in the construction of these highways

• State is also in a process to start Interstate and Intra state bus terminus

AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATEJHARKHAND • December 2007

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Civil Aviation

• A Domestic Airport is located at the state capital Ranchi

• Direct links are available from Ranchi to places like Delhi, Patna, Kolkata, Bhubneshwar, Raipur and Mumbai

• Airstrips are also present at Jamshedpur, Bokaro, Giridih, Deoghar, Hazaribagh, Daltonganj and Noamundiw

AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATEJHARKHAND • December 2007

Transport Infrastructure is adequate and is also being upgraded

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Railways

• Total Railway route length in Jharkhand is 1955 km.

• Jharkhand has extensive goods-handling facilities available at Ranchi, Bokaro, Dhanbad and Jamshedpur

• The Rail Density in Jharkhand was 24.35 km per 1000 square kilometres against India’s Average rail density of 19.13 km per 1000 square kilometres

• The state is planning to develop an Inland Container Depot Operational (ICD) at Tatanagar to facilitate exports

AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATEJHARKHAND • December 2007

Transport Infrastructure is adequate and is also being upgraded

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Power

• The installed Power capacity in Jharkhand (excluding Damodar Valley Corporation) is 2017 MW

• The Damodar Valley Corporation, popularly known as DVC has an installed capacity of 2840 MW

• The pit head site at Tilaiya in Hazaribagh district has been identified as a potential site for Coal-fired ultra mega power plant

The situation in the Power sector and Telecommunication is encouraging

AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATEJHARKHAND • December 2007

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Telecommunications

• Jharkhand is currently underserved in terms of Telecom infrastructure

• BSNL is the only telecom player that has major presence in Jharkhand with 70,775 wireless connections

• Local dialing facility to access internet is available for all district headquarters

• There are 9 Postal Colonies in Jharkhand

The situation in the Power sector and Telecommunication is encouraging

AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATEJHARKHAND • December 2007

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• In order to facilitate industries growth and to create an enabling environment to attract national and international investment, government has implemented the Single Window Clearance System in the state

• Jharkhand is establishing 3-tier Growth Centres at Mega, Mini and Micro levels

• Mega Growth Centres - Barhi and Hazaribagh

• Mini Growth Centres - Food Park (Ranchi); Apparel park (Chaibasa)

• Software Technology Park (Ranchi and Jamshedpur)

• Micro Growth Centres at block level to boost village based industries

Industrial Infrastructure is being built up

Industrial Areas

• The Palamu-Garhwa Industrial Area

• The Loharadagga Industrial Area

• The Koderma-Hazaribagh Industrial Area

• The Ranchi Industrial Area

• The Dhanbad-Bokaro Industrial Area

• The Singbhum Industrial Area

• The Ghatshila Industrial Area

• The Deoghar Industrial Area

AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATEJHARKHAND • December 2007

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POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM

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Key Nodal Agencies in Jharkhand

Department of Industries

• The objective of this department is to accelerate economic development in the state by facilitating investment in Industries and Infrastructure, developing required human resources for industrial employment and supporting Small and Rural industries, Artisans and Craftsmen

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISMJHARKHAND • December 2007

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Key Nodal Agencies in Jharkhand

Department of Energy

• Formulates plans, policies, acts, rules and undertakes developmental activities

• Responsible for expansion of generation, transmission and utilization of Electricity

• The Department has under it different corporations, authorities and undertakings/projects such as Jharkhand State Electricity Board, Tenughat Vidyut Nigam Limited, Jharkhand Renewable Energy Development Authority and Electricity Licensing Board

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISMJHARKHAND • December 2007

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Key Nodal Agencies in Jharkhand

Adityapur Industrial Area Development Authority (AIADA)

• Adityapur Industrial Area is situated in the newly created district of Seraikela Kharsawan

• AIADA controls an area exceeding 33,970 acres

• It has so far developed 1241 Plots and 142 Industrial sheds

• It equips industry with Land, Water, Electricity, Technical expertise in setting-up industry in this industrial area

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISMJHARKHAND • December 2007

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Key Nodal Agencies in Jharkhand

Ranchi Industrial Area Development Authority (RIADA)

• RIADA controls the Industrial Areas spread over 9 districts of Ranchi, Hazaribagh, Koderma, Palamu, Garhwa, Lohardagga, Khunti, Ramgarh and Gumla

• The total industrial area developed by RIADA is 787 acres. Ranchi alone has 6 Industrial areas

• RIADA provides industry with Land, Water, Electricity, Technical expertise in setting-up industry in this industrial area

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISMJHARKHAND • December 2007

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Key Nodal Agencies in Jharkhand

Bokaro Industrial Area Development Authority (BIADA)

• BIADA is located in Bokaro Steel City, which has several SSI units

• BIADA provides most of the industrial supplies for SAIL’s Bokaro Steel Plant, which is the catalyst for the industrial units under BIADA

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISMJHARKHAND • December 2007

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Attractive Investment Climate in the state being created through investment friendly policies, including sector specific policies

Industrial Policy 2001

The Industrial Policy aims at Infrastructure development, lesser number of regulations and Speedy Clearance of new projects. The key initiatives under this policy include the following.

• To rationalise Fiscal concessions

• To provide adequate infrastructural support at a reasonable cost for efficient functioning of the industrial sector

• To simplify rules, regulations and procedures to remove bottlenecks for smooth functioning of the industrial sector

• To introduce latest scientific data collection system to make the planning process more realistic

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISMJHARKHAND • December 2007

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Attractive Investment Climate in the state being created through investment friendly policies, including sector specific policies

Industrial Policy 2001

• To make the Single Window System more effective;

• To ensure timely and adequate flow of credit to industries, specially the SSI sector

• To diagnose incipient sickness and initiate timely measure for revival of sick industries and develop a monitoring system at district level to avoid sickness in the industry

• To develop “Craft Villages” and organising “Craft Bazaars” to provide adequate market access to Artisans and Craftsmen

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISMJHARKHAND • December 2007

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Attractive Investment Climate in the state being created through investment friendly policies, including sector specific policies

Industrial Policy 2001

• To encourage setting up of 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

• To develop Industrial Parks for specialised activities in the field of Information Technology, Tassar/Mulberry, Electronics, Plastic, Chemicals, Biotech and Herbs, Export and Food Processing with adequate power, water, communication, transport and other common facilities

• To emphasise on small power generation units and developing non-conventional source of energy through private participation

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISMJHARKHAND • December 2007

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Attractive Investment Climate in the state being created through investment friendly policies, including sector specific policies

Purchase Policy 2007

It aims to ensure purchase of required stores requirement of various state government departments and institutions controlled by state government Jharkhand Purchase policy has been formulated.

The key objective of this policy is:

• To ensure that all the administrative departments and agencies under the control of state government, head of Departments and offices subordinate to them, Boards, Corporations, Development Authorities and Municipalities, Notified Area Committees, Co-operative bodies and institutions aided by the state government and companies where government share is 50% or more procure their requirement of store items within the state

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISMJHARKHAND • December 2007

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Attractive Investment Climate in the state being created through investment friendly policies, including sector specific policies

Purchase Policy 2007

• To make purchases from the exclusive list defined by the state government;

• Rate contract in respect of specific item not in the exclusive list and manufactured by Local Enterprise, state government may purchase rate contract items from the Rate Contract holder at a fixed price;

• Purchase on open tender

• All purchases have to be made exclusively from dealers/suppliers registered under the Jharkhand VAT Act, 2005

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISMJHARKHAND • December 2007

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Attractive Investment Climate in the state being created through investment friendly policies, including sector specific policies

IT Policy 2004

Improved communications & infrastructure. Education & development of Human Resources and effective governance

According to the policy,

• JharNet - state wide high speed, reliable & scalable communication links will be set up by the state government

• Internet connectivity across the state

• Seamless connectivity among various government organisations

• Setting up of IT Parks

• State will strive to spread education to achieve 10% Computer literacy in the state in 10 years and 30% in 20 years

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISMJHARKHAND • December 2007

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Single Window Clearance mechanism exists to facilitate speedy implementation of Industrial projects

IT Policy 2004

Government of Jharkhand has implemented the Single Window Clearance System for faster and one-point clearance of industrial projects, single point dissemination of industrial project related information and streamline the inspection of the industries by different Agencies/Authorities.

• At the state level for speedy clearance of Mega Projects (investment above US$ 11million) a Committee 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

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISMJHARKHAND • December 2007

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Single Window Clearance mechanism exists to facilitate speedy implementation of industrial projects

IT Policy 2004

• 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

• Officers from the following departments have been deputed to the SWS office to facilitate smooth functioning of the Single Window System

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISMJHARKHAND • December 2007

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Concerned Agencies for starting business in Jharkhand

Clearances Required Department Responsible

Allotment of Land/Acquisition of Land/Change of Land use Industries Department, GoJ and District Collector

Approval of Building Plan Industrial Area Development Authority and Local Bodies

Release of Power Connection and Consent for Setting up

Captive Power Plant

Jharkhand State Electricity Board

Release of Water Supply State Water Supply Board and Industrial Area Authority

Registration as a Factory Chief Inspector of Factories

Sales Tax Registration Revenue Department, Government of Jharkhand

Registration under Trade Union Act Labour Department, Government of Jharkhand

Registration under Shops and Establishments Act Labour Department, Government of Jharkhand

Registration under Industrial Disputes Act Labour Department, Government of Jharkhand

Registration under Minimum Wages Act/State Employee

Insurance Act

Labour Department, Government of Jharkhand

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISMJHARKHAND • December 2007

Source: IMaCS Research

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COST OF DOING BUSINESS

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Cost of doing Business in Jharkhand

COST OF DOING BUSINESSJHARKHAND • December 2007

Cost Parameter Cost Estimates

Cost of Land* Government Land: US$ 11 (upcoming industrial areas) to US$ 23 (key industrial areas of Ranchi and Jamshedpur)

Hotel costs** US$ 55 to US$ 110 per room night

Cost of Residential space*** US$ 26 to US$ 37 per square foot. (Rates depend on the type of structure and location)

Power cost**** Commercial & Industrial use: 11 cents per kWh

Cost of Water* Commercial & Industrial: US$ 3 per 34000 litres

*Source: Department of Industries**Source: Leading Hotels in the State***Source: Discussions with property dealers ****Source: India Stats

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KEY INDUSTRIES AND PLAYERS

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Low Medium High

High

Medium

Factor Advantage

Industry Attractiveness Matrix

Polic

y Agro-based Industry

Heavy Engineering

Chemicals

Mining and Metals

Key Industries that have developed in the state are a result of the policy thrust of the government and several factor advantages

KEY INDUSTRIES AND PLAYERS JHARKHAND • December 2007

Auto Components

IT & Electronics

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Overview of Mining and Metal Industry in Jharkhand

Overview

• Jharkhand is a mineral rich state

• 40% of India’s Mineral Reserves are available in this State

• The state is rich in minerals such as Iron ore, Coal, Mica, Copper, Bauxite, Uranium and Limestone.

• Principal export destinations of Jharkhand minerals are Bangladesh, Nepal, South Africa and Saudi Arabia

• The Mica belts of the state are centred in the Koderma reserve forest area, Chatkri, Dhab, Jhumri Tilaiya and Giridih town

• Copper deposit are mostly concentrated in Rakha, Kendadih, Surda, Pathargora and Mosaboni areas of East Singhbhum district.

KEY INDUSTRIES AND PLAYERS JHARKHAND • December 2007

Key Players

Hindustan Copper

Tata Steel

SAIL

Hindalco Industries

Indian Hume Pipe

Timken India Limited

Usha Martin

Shriram Needle Bearing Industries Limited (SNL)

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Key Players in the Mining and Metal Industry

Hindustan Copper Limited

• Hindustan Copper Ltd. was incorporated in the year 1967 to take over the plants and mines at Rajasthan and Jharkhand from National Development Corporation Limited

• The company is engaged in activities ranging from Mining, Beneficiation, Smelting, Refining and Production of Cathodes, Wire bars and Continuous cast rods

KEY INDUSTRIES AND PLAYERS JHARKHAND • December 2007

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Key Players in the Mining and Metal Industry

Tata Steel

• Established in 1907, Tata Steel is Asia’s 1st and India’s largest private sector Steel Company.

• Tata Steel is among the lowest cost producers of steel in the world and one of the few select steel companies in the world that is EVA+

• It has captive raw material resources and the state-of-the-art 5 MTPA (million tonne per annum) plant at Jamshedpur

KEY INDUSTRIES AND PLAYERS JHARKHAND • December 2007

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SAIL

• Steel Authority of India Limited (SAIL) is the leading steel-making company in India

• SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) as well as in-house Centre for Engineering and Technology (CET), Management Training Institute (MTI) and Safety Organisation at Ranchi

Key Players in the Mining and Metal Industry

KEY INDUSTRIES AND PLAYERS JHARKHAND • December 2007

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Hindalco Industries

• Hindalco Industries Limited is one of the largest producers of primary aluminium and copper in Asia

• Hindalco is a part of the Aditya Birla Group

• Hindalco’s alumina refinery, aluminium smelter and semi-fabricated production facilities are located at Renukoot in Jharkhand

Indian Hume Pipe

• Indian Hume Pipe Ltd manufactures a variety of pipes such as plain, reinforced, prestressed and steel cylinder Concrete pipes and Steel pipes, Benstock pipes, Specials and Prestressed concrete poles

• The company’s plants are located at Jamshedpur, Ahmedabad, Mumbai and Pune

• Indian Hume Pipe is part of Gulabchand Doshi Group

Key Players in the Mining and Metal Industry

KEY INDUSTRIES AND PLAYERS JHARKHAND • December 2007

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Timken India Limited

• Timken India Limited, a subsidiary of The Timken Company, USA

• The company’s principal activity is the manufacture of Tapered Roller Bearings at its Jamshedpur plant

• Timken provides Friction Management solutions for a wide range of industry applications across the globe

Usha Martin Limited

• Usha Martin is the flagship company of the Usha Martin Group

• The group has three principal manufacturing divisions of Wire & Wire Rope, Steel and Cables

• It has set up a Wire Rod Rolling Mill at Jamshedpur

Key Players in the Mining and Metal Industry

KEY INDUSTRIES AND PLAYERS JHARKHAND • December 2007

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Shriram Needle Bearing Industries Limited (SNL)

• SNL is promoted by the leading Indian business house, Shriram Group

• The company’s plants for manufacturing Needle bearing are located at Ranchi

• SNL enjoys a large market share of Original Equipment Manufacturers both in domestic and international market

Key Players in the Mining and Metal Industry

KEY INDUSTRIES AND PLAYERS JHARKHAND • December 2007

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Overview

• Heavy Engineering industries are considered as the base of economic stability of state

• Jharkhand has adequate water and Power supply to set up those industries

• As a result some of the biggest names in the industries including Heavy Engineering Corporation, McNally Bharat Limited and TRF Limited

Overview of Heavy Engineering Industry in Jharkhand

KEY INDUSTRIES AND PLAYERS JHARKHAND • December 2007

Key Players

Heavy Engineering Corporation

McNally Bharat Limited

TRF Limited

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Heavy Engineering Corporation

• Heavy Engineering Corporation established as a public sector undertaking by the Government of India in 1958

• The Corporation has been successful in setting up of a Heavy Machine Building plant, a Foundry Forge plant and a Heavy Machine Tolls plant at Hatia, Ranchi

Key Players in the Heavy Engineering Industry

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McNally Bharat Engineering Company Limited (MBE)

• MBE is one of the leading engineering companies in India engaged in providing Turnkey Solutions in the areas of Power, Steel, Alumina, Material handling

• Over 250 plants have been constructed on turnkey basis by MBE till date

• One of its factory is based at Kumardhubi, Jharkhand

TRF Limited

• TRF Ltd. was incorporated in 1962 and is part of the Tata Group

• The company mainly produces Material handling equipment

• The company has a plant at Jamshedpur near Purbi Singhbhum, Jharkhand

Key Players in the Heavy Engineering Industry

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Overview

• The Automotive Industry in Jharkhand comprises of original equipment manufacturers as well as the Auto component industry

• The Auto components produced range from simple items like Nuts and Bolts to complex items like Shafts, Radiators and Axles

Overview of Automobiles and Auto components Industry in Jharkhand

KEY INDUSTRIES AND PLAYERS JHARKHAND • December 2007

Key Players

Apex Auto Limited

JMT Auto Limited

Tata Motors Limited

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Apex Auto Limited

• The company was incorporated in 1994

• It manufactures Excavator components

• Its plant is located at Jamshedpur

JMT Auto Limited

• The company manufactures Automobile ancillaries, Ancillary gear boxes, Axle components, Gearboxes and Excavator components

• The plant is located at Adityapur in Jharkhand

• JMT exports its product to Europe and America, besides supplying it to Telco and LML

Key players in Automobiles and Auto components Industry

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Tata Motors Limited

• Tata Motors Limited is India’s largest automobile company, with revenues of US$ 7.2 billion in 2006-07

• It is the leader in commercial vehicles in each segment that it is present in, and the 2nd largest in the passenger vehicles market in India

• The company’s manufacturing base is spread across India - Jamshedpur (Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand)

Key players in Automobiles and Auto components Industry

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Overview of Agro-based Industry in Jharkhand

Overview

• Jharkhand has a large and varied Agricultural products that can support a host of Agro-based industries

• The state’s soil and climatic conditions also support Ornamental plants, Mushroom and Spices and Tea

• The state also has a large Sericulture base and accounts for 40% of the production of Tussar, a non-mulberry silk

KEY INDUSTRIES AND PLAYERS JHARKHAND • December 2007

Key Players

IVP Limited

Mihijam Vanaspati Limited

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Key Players in Agro-based Industry

IVP Limited

• IVP Limited was incorporated in 1929

• It is a diversified company, engaged in the production of a variety of items like Vanaspati and Vegetables oils, Industrial chemicals (epoxy plasticizers and esters), Foundry chemicals (alkyd resins, phenolic resins, dressings and fluxes), Advanced ceramics and Spark plugs

• Company’s manufacturing plants are located at Bangalore (Karnataka), Jamshedpur (Jharkhand) and Mumbai, Thane and Aurangabad (Maharashtra)

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Key Players in Agro-based Industry

Mihijam Vanaspati Limited

• The company was incorporated in 1989

• It manufactures Acid oil, Fatty acid, Hard soap, Vanaspati, Refined palm oil, Nickle catalyst

• The plants are located at Dumka in Jharkhand

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Overview of Power Industry in Jharkhand

Overview

• Jharkhand has both Coal and Water resources that can help in generating Power

• The installed capacity of Jharkhand (excluding Damodar Valley Corporation) is 2017 MW

• The Damodar Valley Corporation, popularly known as DVC has an installed capacity of 2840 MW

• The state has a large power generating opportunity and it is open to the prospect of private participation

KEY INDUSTRIES AND PLAYERS JHARKHAND • December 2007

Key Players

National Thermal Power Corporation

(NTPC)

Tata Power Company Limited

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Key players in Power Industries

National Thermal Power Corporation (NTPC)

• National Thermal Power Corporation is India’s largest Electricity generation company.

• In 2006, it had a share of 19.5% of installed capacity in India, generating 27.7% of total electricity in the country

• NTPC has been allotted Pakri-Barwadih Coal Mine in Jharkhand

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Key players in Power Industries

Tata Power Company Limited

• Tata Power Company Limited is India’s largest private sector power utility with an installed generation capacity of over 2300 MW

• It has a presence in all the segments of the power sector viz. Generation (thermal, hydro, solar and wind), Transmission and Distribution

• Tata power has 120 MW coal based Thermal Power plant located at Jojobera, Jharkhand

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KEY INDUSTRIES AND PLAYERS JHARKHAND • December 2007