Uttarakhand

UTTARAKHAND

General Profile

Uttarakhand is the twenty-seventh state of the country. The state was created on 9th November 2000. The total population of the state according to the 2001 census is 84.89 lakh. The population density is 159 (per square kilometer). It is surrounded by China and Nepal on its international boundary. On the domestic boundary, Uttar Pradesh, Himachal Pradesh and Nainital surround Uttarakhand.

In recent years, Uttarakhand has emerged as one of the most attractive industrial destinations in India. The government is encouraging private participation in all industrial activities and as a result big players such as HLL and Dabur have set up units in the state. The New Industrial Policy announced in 2003 by the state government puts in place the regulatory framework for Uttarakhand’s industrialisation. The New Industrial Policy indicates that private resources may be tapped while promoting integrated Industrial Estates in Uttarakhand.

Advantage Uttarakhand

• Udyog Mitra- State level facilitation body has been set up.
• State Industrial Development Corporation of Uttarakhand Limited (SIDCUL) has been created to ensure all facilities to industrialists.
• Industrial estates have been established at Haridwar, Pantnagar, Sitargunj, Selakui, Kotdwar, and various other areas.
• New Industrial Policy with wide range of fiscal and non-fiscal incentives.
• The State has rich mineral deposits of limestone, soapstone, magnetite etc., besides minor minerals. Resource mapping is being undertaken.
• Action is being taken to simplify and rationalize the Labour Laws.
• Concessional Industrial Package Announced
• Land Bank – A dedicated land bank being created to provide land for projects across the table.
• Peaceful and Secure Industrial Environment.
• Hydro Power Resource – Potential powerhouse of the Nation. Only 9% of the total hydropower potential has been tapped till now. Uttarakhand is a land of vast water resources. It is proposed to scientifically utilize the immeasurable water wealth and make Uttarakhand an energy state by the year 2016. Tehri dam will prove a major asset in fulfilling this aim.
• Tourism Potential Unmatched – Mountain, leisure, Spiritual, Adventure, Religious, Eco-traditional and high-end tourism along with related services.
• Good Quality of Life – Healthy climate and Pollution free environment
• Major Climate Zones in close Geographical proximity.
• 175 species of Medicinal Herbs found in Uttarakhand.
• Proactive government.

Major industries

Floriculture and Horticulture

Uttarakhand has almost all the different agro-geo climatic zones making it particularly conducive to commercial horticulture and floriculture. Floriculture is being developed in a big way in order to meet the demand of both – the domestic as well as the foreign markets. The climate is ideal for growing flowers all round the year. Hence, it is proposed to establish floriculture parks with common infrastructure facilities for sorting, pre-cooling, cold chain, processing, grading, packing and marketing facilities. Horticulture is also being promoted in a big way through adequate incentives and facilities to the industry.

Agro and Food Processing Industries

The state government provides assistance in establishing small and medium size agro parks, food parks etc., which in turn are expected to provide common infrastructure facilities for storage, processing, grading and marketing.

Uttarakhand has been included in difficult area category by the Ministry of Food Processing Industry (MFPI) and hence units being set up in Uttarakhand will be eligible for higher incentives under the scheme of MFPI.

Biotechnology

Biotechnology (BT) is poised to make significant contributions in agriculture, human and animal health care, environment management and process industries. Rare species of plants and animals found in the state, add to its natural advantage in this sector. In this context, a MOU has already been signed between Rabo India Finance Company, Infrastructure Development Finance Company and the G.B. Pant University of Agriculture and Technology in order to forge strategic cooperation to jointly pursue initiatives in the sphere of research in food and agriculture sectors. A high level Biotechnology Board is also being setup under the Chairmanship of the Hon’ble Chief Minister.

The proposed strategy of the state with respect to the biotechnology sector is:

• Units coming up in this sector, including the R&D units in this field, shall be accorded industry status and the provisions made for the IT sector shall be made applicable to this sector as well.
• Establish an internationally competitive business infrastructure and environment for the biotechnology industry in the state.
• Develop Uttarakhand as a centre of excellence in biotechnology by providing necessary education and training facilities for the creation of a large pool of multi-skilled, technically competent manpower and organizations for state of the art biotechnology research in the state.
• A biotechnology park will be developed near Pantnagar to achieve the vision of the government. The proposed Biotechnology Park will integrate resources and provide amongst others, a focused institutional set up for accelerated commercial growth of Biotechnology and Bio-Informatics.

Information and Communication Technology

The state is naturally endowed and has all prerequisites for developing as a preferred destination for IT & ITES along with hardware production. IT & ITES have been accorded the status of Industry. Several initiatives have been taken to promote IT and ITES industry in Uttarakhand. Uttarakhand offers high-speed connectivity with the establishment of an STPI earth station at Dehradun and proposed earth stations at other locations. Facilities by BSNL and Reliance are also available in the state. A dedicated IT park is already coming up in Dehradun and others are in the pipeline. Also, stamp duty concessions are proposed for units located in IT parks.

Hydro power

The state has untapped potential for generating hydropower, which is both cheap and clean. Nearly 15000 MW of hydropower can be generated in the state. The government has identified 47 small hydro sites (upto 25 MW) for allotment to the private sector. Also, 17 major hydro sites (25-100 MW) have been taken up for development.

Forest Products- Herbs and Spices

Since a significant part of the state is under the forest cover (almost 70 percent), there exists excellent potential for the development of forest resources based industries. In addition, there is ample scope to develop industries based on forest and agro wastes such as lantana, pine needles and plant & vegetative fibers.

Uttarakhand is also a storehouse for a rich variety of herbs, medicinal and aromatic plant species. With a view to utilize these resources, a medicinal and aromatic plants export zone has been set up covering seven districts of Uttarakhand and specialized herbal parks are in the offing.

Tourism

Tourism industry has been accorded the status of a thrust sector in the state and the state government has set up statutory Uttarakhand Tourism Board as an apex body for development of tourism in the state. Several areas of Uttarakhand are already established as centers of pilgrimage tourism. Huge investment potential exists in the tourism sector including:

• Development of facilities for providing spiritual lessons, reiki, and other rejuvenating courses.
• Eco- tourism hotels, spa, resorts, amusement parks and ropeways.
• Winter sports at places such as Auly, which have the requisite terrain for the purpose.
• Adventure tourism

Investment Opportunities

Investment opportunities do exist in the following sectors-

• Agro and food processing
• Floriculture and Horticulture
• Biotechnology
• IT and Communication
• Hydropower
• Forest Products
• Bamboo and fiber development