Haryana

General Profile

Haryana became a new state on 1st November 1966. Haryana is situated in the north between 27 deg 37′ to 30 deg 35′ latitude and between 74 deg 28′ to 77 deg 36′ longitude. Haryana has Uttar Pradesh on its eastern border, Punjab on its western border, Uttaranchal, Himachal Pradesh & Shivalik Hills on its northern border and Delhi, Rajasthan and Aravali Hills on its southern border. The altitude of Haryana varies between 700 ft to 900 ft above the sea level.

Located in Northern India with New Delhi, Uttar Pradesh, Punjab, Himachal Pradesh and Rajasthan as her neighboring states, Haryana is situated on the western side of the National Capital, surrounding New Delhi from three sides, giving it a distinct advantage of investor heaven.

Since her creation in 1966, Haryana has emerged as a forefront progressive state in India and set a glaring example of planned economic development. Ranked first in per capita income, Haryana has combined growth with equity with minimum gap between rural and urban prosperity. Besides this, Haryana is:

• Amongst the top industrialized States, ranks third in per capita Value Addition.
• Sixth in the roster of Industrial Entrepreneurship Memoranda (IEMs).
• No. 1 in country in implementation of Industrial Entrepreneurship Memoranda (IEMs).
• Ranks fourth as per the infrastructure index developed by CMIE.
• One of the top agrarian states contributes substantially to the national food grain pool of wheat, rice, coarse cereals and pulses.

Advantage Haryana

• Haryana offers excellent location to start any industry. It has a rich industrial base and a sound infrastructure.
• Forty percent of the national capital region falls in Haryana state and thirty percent of the state is notified National Capital Region (NCR).
• Ninety-three of top Fortune -100 companies with their corporate offices and production bases already in Haryana.
• The state has impressive infrastructure facilities in relation to road and rail network, well-developed industrial estates, good banking facilities, reliable communication network, modern technical institutes and developed commercial markets.
• World-class industrial, corporate and residential estates with highly competitive prices, developed and managed by highly professional and world-renowned Private and Government agencies.
• Haryana is in close contact with the cosmopolitan world, being close to Delhi. International and domestic airports, diplomatic and commercial complexes are in near proximity. Indira Gandhi International Airport is just ten minutes drive from Gurgaon, an emerging metropolis.
• Strike/lockouts are bare minimum. Negligible loss of man-days.
• Haryana has an efficient administrative and delivery system. Its endeavor has always been to simplify procedures, eliminate red-tapism and willful delays and ensure transparency in decision-making.
• Special emphasis is laid on planned development of infrastructure and providing eco-friendly environment conducive to healthy growth of industry.
• Haryana has adopted investor-friendly policies. These policies have been adjusted in accordance with the changing economic scenario and are far more liberal and transparent. These policies are geared towards promoting private investments- both domestic and foreign.
• Conducive foreign investment environment.
• Well-balanced package of incentives.
• One of the top agrarian states contributes substantially to the national food grain pool of wheat, rice, coarse cereals and pulses.
• Haryana today produces more than 50 percent of passenger cars, 50 percent of motorcycles and 25 percent of tractors, 25 percent of bicycles and sanitary wares manufactured in the Country.
• Under the New Industrial Policy (NIP) the state has received investment proposals of worth over one lakh crore rupees in the areas of automobiles & automotive components, information, technology, readymade garments, electrical goods, handlooms, agro-based & food-processing industry, light engineering etc.
• Under the Special Economic Zones (SEZ) Act, 20 SEZs with an investment of US$ 18.8779 billion have to be set up. Ten SEZs have already been approved by the Central government.

Economic Profile

Estimates of Per Capita Income in Haryana (1993-94 to 2007-08)

At the doorsteps of the National Capital, Haryana offers excellent location to set up any enterprises, sharing highly developed industrial base and reliable infrastructure in the State.

• One-third of Haryana falls under the National Capital Region.
  Panipat, Rohtak, Gurgaon, Rewari, Faridabad and Sonepat have special potential for accelerated socio-economic development.
• Haryana is in close contact with the cosmopolitan world, being closer to Delhi. International and domestic airports, diplomatic and commercial complexes are located in close proximity with the state via a via other emerging industrial and residential estates in and around Delhi.
• Indira Gandhi International Airport is just ten minutes drive from Gurgaon, an emerging metropolis.
• Excellent law and order situation with peace loving, hardworking populace.
• The industrial relations are extremely harmonious with cordial employer-employee relations. Negligible loss of man-days. Strikes/lockouts are bare minimum.
• The State has impressive infrastructure facilities in relation to read and rail network, well-developed industrial estates, good banking facilities, reliable communication network, modern technical institutes and developed commercial markets.
• Haryana has responsive administration and efficient delivery system. Its endeavour has always been to simplify procedures, eliminate red-tapism and willful delays and ensure transparency in decision-making.
• Special emphasis is laid on planned development of infrastructure and providing eco-friendly environment conducive to healthy growth of industry.

Haryana is the Leading Industrialized State of India and its share in National Production :

• 50%  passenger cars.
• 50%  motorcycles.
• 30%  refrigerators.
• 25%  tractors.
• 25%  bicycles and sanitary wares.
• 20% of the country’s export of scientific instrument.
• Third among states in software exports from India.

Haryana is one of the leading states in the country in terms of per capita income and proudly identifies itself as:

• First in the country to achieve 100% electrification.
• First in the country to link all villages with all weather roads.
• First in the country to provide safe drinking water facilities throughout the state.

NATURAL RESOURCES

• Haryana’s mineral rich regions are concentrated in the districts of Mahendregarh, Gurgaon, Yamunanagar and Punchkula. Iron ore, lime-stone and slate are the three principal minerals currently being exploited economically. However, the state also has deposits of lime, china clay, dolomite, quartz and silica.
  Mahendregarh is rich in mineral resources and does offer great scope for exploitation. Besides this, marble deposits have considerable economic potential. Rewari, Gurgaon and Mahendergarh are rich in slate. Haryana’s high-grade iron ore reserves have been estimated at 5 million tones.4% of the total area in the State in under forests.

• HUMAN RESOURCE AND CULTURAL HERITAGE

The people of Haryana have built their State through sheer toil and sweat. Haryana has primarily been agrarian economy and thus, most of the people are traditionally farmers. Of late this influential and rich community has embraced industry as the future means of growth as well as realized the importance of education and professional qualifications. Haryana today can boast of a large economically affluent middle class and a rapidly burgeoning professional populace.

• NATURAL HABITAT AND TOURISM

Haryana has been blessed with naturall diversity and has National Parks and sanctuaries. In the south lie the industrial belt (Faridabad,Guragon and Rewari) and the Mewat area, criss-crossed by the rocky Aravali hills. This diverse mix of habitat brings Haryana a unique flavor for tourists. Due to the efforts the State Government Haryana has emerged as the favored adventure tourism destination in India. From Para-gliding to bungee jumping, Haryana is attracting a surfeit of adventure tourists. Spanning across the lybrinth of the state is a wide network of good quality motorable roads and every location has a network of State owned Haryana Tourism Complexes and very good privately developed resorts with modern amenities ensuring comfort at an affordable prices.

• CLIMATE AND RAINFALL

Haryana has a ‘continental’ climate with hot summers and cold winters. While mercury hits 45 ’C in the summers, it drops below freezing point in winters. There are two distinct rainy seasons (average annual rainfall being 80cms)
(a) The monsoons, lasting from middle of June till end September (heavy downpour)
(b) Winter rains, form December to February (scanty rainfall).

Strategic Advantages

• Most strategically located, encompasses New Delhi, the Capital City from three sides.
• Forty percent of the National Capital Region falls in Haryana State and thirty percent of the State is notified National Capital Region.
• Ninety-three of top Fortune -100 companies with their corporate offices and production bases already in Haryana.
• Very close to International, Domestic Airports, inland Container Depot/s and excellent Rail-Road links. Infact four out of five National Highway emanating from New Delhi transact through Haryana.
• World Class industrial, corporate and residential estates with highly competitive prices, developed and managed by highly professional and world renowned private and government agencies.
• Very fine quality Human Resources availability, superb infrastructure, home and leisure support systems in place.
• Excellent law and order situation, peace loving, hardworking workforce and historically known for symbiotic industry workforce relations, with least number of man days loss and negligible strikes/lockouts.
• Responsive and transparent administration, efficient delivery system, highly standardized and simplified procedures.
• Futuristic planning and progressive policies with appropriate enforcement confirming to world class environmental standards

Impact of FDI on Haryana Economy has proved to be beneficial for the state’s economy has grown at a very impressive rate. Employment in Haryana has increased significantly due to Foreign Direct Investments in the state.

Factors attracting foreign direct investment in Haryana are:

  The state provides excellent infrastructure facilities such as well developed roads, railways, industrial estates, technical

  institutes, commercial markets, and communication network.

• The state provides a well developed system of banking with more than 4500 branches of banks
• The state has adopted policies that are investor friendly
• The state has a very efficient administrative system which tries to make it easy for the investors to make investments in the state
• The state provides abundant supply of skilled manpower
• The state provides residential and corporate estates that are of world class standards

Amount of foreign direct investment in Haryana:

The total amount of foreign direct investment in the state of Haryana came to around Rs. 3,000 crore during 2000 to 2004.

Industries in Haryana attracting foreign direct investment are:

• Information technology
• Electrical goods
• Food processing industries
• Automobiles
• Ready made garments
• Light engineering

International companies having presence in Haryana are:

• Siemens
• Alcatel
• Duracell
• GE Capital
• Silicongraphics
• Motorola
• Daewoo Telecom Ltd
• Polaroid
• Hughes Software systems

Growth in Haryana economy due to foreign direct investment:

Haryana has emerged as one of the most important states in the country for foreign direct investment and this has given a major boost to the economy of the state. Haryana has become the largest manufacturer of the number of tractors, passenger cars, scientific instruments, and motorcycles in the country. The tax collections in the state increased at the rate of 15% in 2003- 2004. The state of Haryana has also generated more than 2 lakh jobs due to foreign direct investments between 2000 and 2004. The total amount of exports from Haryana has registered growth from Rs. 10,000 crores in 2002- 2003 to more than Rs. 12,000 crores in the next year

Incentives and Concessions are being offered for attracting Foreign and Domestic Investment by Haryana State

• Customized package of incentives and concessions

Customized package of incentives and concessions is provided to prestigious projects having an investment of Rs. 30 crores and above. A High Powered Committee has been constituted under the Chairmanship of High Powered Committee has been constituted under the Chairmanship of the Hon’ble Chief Minister to decide the package in individual cases.

• Electricity duty exemption

Electricity duty exemption is provided to all new industrial units except those in negative list of industries for a period of 5 years throughout the State.

• Reservation of Plots for NRIs, EOUs and Foreign Investment Projects

10%f of plots in the nearly developed Industrial Estates, Growth Centres and IIDCs have been reserved for NRIs and 10% have been reserved for EOUS with at least 33% export orders and units having a minimum foreign equity of 33%.

• Rebate on land cost

Rebate equivalent to 20% of the land cost is given if the industrial unit starts commercial production within 3 years of offer of possession of industrial plots.

• Time schedule for sanctions/approvals:

A time schedule will be fixed for various departments for giving necessary sanctions/approvals to reduce time frames for project completion.

State Government has being laying emphasis on attracting IT Industry in the State and Gurgaon has become hub of IT Industry in the country. Exports from the State were Rs.8000 crores during the year 2001-2002 out of which share of IT industry was Rs.3200 crores. State Government has formulated a separate Information Technology Policy, 2000 and following package of incentives has been announced for foreign as well as domestic IT Industries:-

• Preferential allotment of land for IT industry:

The State Government has been giving preferential treatment for allotment of land to the IT industries on an ongoing basis in all industrial areas developed by State agencies.

• Continuous-uninterrupted power supply for IT industry:

The State Government has been endeavoring to provide continuous and uninterrupted power supply for IT industries and shall exempt them from schedule power cuts. Encouragement to captive power generation in IT Parks/IT locations shall be given.

• Facilities on Generator Sets:

Captive power generation sets installed by the information Technology Industry are eligible for total exemption from payment of electricity duty without any time limit.

• Liberal change of existing industry to IT:

The State Government are permitting setting up of IT Software units in urban areas and change of existing industry to IT.

• Change of land use:

No charges for change of land use (CLU) are being levied for the IT industry/IT Parks for 3 years i.e., up to 31.03.2003. Permission for sale/leasing/subleasing in constructed buildings and open spaces shall be permitted for optimum utilization of infrastructure. Licences for setting up STPs are being given liberally and on easy payment terms.

• Floor Area Regulation (FAR):

Relaxation in FAR is permitted up to 100% in areas specifically notified by the State Government for IT Units and in all IT Parks.

• Clearances and Support:

Escort services and Single Desk Clearance for obtaining easy clearances and approval of various Government Departments is being facilitated for the IT Industries. On-line Clearance & Support Network (OCSN) will be established linking all the related Departments/Organizations. The Secretariat for IT shall coordinate approvals and facilitation.

• Applicable rate of Sales Tax:

IT software Industry will be totally exempted from payment of sales tax. The applicable rate of sales tax on computers and computer peripherals shall be reduced to 0.25%.

Definitions: Definitions of IT Industry, Software, computers, Computer peripherals and IT enabled services for the purpose of sales tax concession and applicable rate of sales tax are as mentioned on web site http://Haryana.nic.in

• IT as priority sector for lending:

IT Software and IT Services is considered as a priority sector by the State Level Financial Institutions for lending assistance.

• Exemption from Pollution Control:

IT Software industry is exempted from the purview of the Haryana Pollution Control Act, except in respect of power generation sets of more than 10 KVA Capacity.

• Awards of excellence:

The State will declare awards of excellence for outstanding performance in exports/domestic segment/employment generation.

• Strengthening telecom and communication infrastructure:

The State shall pursue with DOT for establishing reliable, adequate and efficient telecom and communication infrastructure including Internet Nodes in all districts of Haryana.

Haryana being a pioneering Green Revolution State, Haryana has progressed rapidly and the welfare of its people has increased many folds. In the process it has been one of the largest contributors of the food to the country. This strength lies in its agrarian economy. The continued uplift of its citizens and obligations to the country both present and future can only be met through a change in paradigm from the Green to the Ever-Green Revolution, which in turn can only be sustained with the help of biotechnology.

Therefore, to boost the Biotechnology industry in the State, special incentives are provided to foreign as well as domestic biotech industries and are detailed below:-

• Preferential allotment of land:

The State Government is giving preferential treatment for allotment of land to the Biotech industry on an ongoing basis in all industrial areas developed by State agencies.

• Continuous – uninterrupted power supply:

The State Government is endeavoring to provide continuous and uninterrupted power supply for Biotech industry to exempt them from scheduled power cuts. Encouragement shall be given to captive power generation in Biotech Parks/Biotech locations.

• Captive Generation:

Captive generation sets installed by biotech industry are eligible for exemption of Electricity Duty for five years.

• Venture Capital:

Govt. is encouraging setting up of venture capital funds with private participation to provide active monetary support to biotech industry.

• Registration charges and Stamp Duty:

Rebate on registration and transfer of property charges and exemption from stamp duty on a tapering scale is being given for sale/lease of built up space to the Biotech industry.

– From the date of notification to 31.12.2003, 90%
– First January 2004 and up to 30^th June 2005, 75%
– First July 2005 and up to 31^st December 2006, 60%
– First January 2007 and up to 30^th June 2008, 45%

The rebate is applicable on the combined levy of registration fee, stamp duty and transfer of property duty and no total exemption of stamp duty would be extended. This concession would be available only for the first transaction, when the first sale by the infrastructure company is made to Biotech industry.

• Exemption in Labour Laws:

Labour Laws are being amended so that the Biotech industrial units shall be able to operate in night shift also.

• Clearances and Support:

Single Desk Clearance for obtaining easy clearances and approval of various Government Departments shall be facilitated for Biotech industries. On-line clearances and Support Network will be established linking all the related Departments/Organizations. The Industrial Assistance Group shall coordinate approvals and facilitation.

Besides, State Government has constituted the Foreign Investment Promotion Board, Haryana under the Chairmanship of Chief Minister, Haryana. The Board apart from playing aggressive promotional role will also give technical support to appraise foreign investment proposals. It will be empowered to take decisions regarding allotment of land, sanction of term loan etc. and will act as a Single Window Agency for FDI proposals.