PBD 2012

7-9 January 2012

 
 

 

 

 

 
 
 

Why to Invest in Rajasthan?

By Dr. K.L. Jain *                          

 
   

With an area of 3.42 lakh sq. km., Rajasthan is the largest state in the country and to put into perspective, it is 5 times bigger than Sri Lanka, 17 times bigger than Israel and more than double that of England. About 40 percent of the Delhi-Mumbai Industrial Corridor (DMIC) passes through Rajasthan, offering a unique opportunity for investment. Some salient features about Rajasthan are as follow:

Agriculture & Allied Activities: Rajasthan is predominantly an agrarian State, with agriculture and allied activities contributing more than 40 percent of the States Domestic Product. The main crops of the State are food grains, pulses and oil seeds. Rajasthan stands first in the country in the production of Mustard, Bajra, Coriander, Cumin, Fenugreek, Moth, Guar, Isabgol and Henna and second in the production of Maize. The State is also a major producer of many fruits like Sweet-lime, Custard Apple, Malta and Pomegranate. Onions, Potatoes and Tomatoes are the main vegetable crops of the State. Rajasthan also produces 50 percent of all seed spices grown in the country. Coriander, Cumin-seed, Chillies and Garlic are the main spices grown in the State. Other areas of focus in agriculture based sector are that Rajasthan offers good potential in frozen vegetables, tissue culture projects, brewery projects, solvent extraction plants, maize processing plants, bio-pesticides & bio fertilizers, dry farming, treatment of industrial effluents for being used as fertilizer, waste management, development of bio-fuel energy, development of generic and herbal medicinal plants etc.

The State Government has taken several steps to increase agriculture production and quality by enhancing irrigation facilities, adoption of Israeli technology for using less water in agriculture, allowing contract and collaborative farming, creation of agri-export zones and commodity specific markets. Animal husbandry and forest produce of use in medicines also offer good scope.

Mineral Wealth: Rajasthan has a virtual monopoly in many minerals in the country such as Wollastonite and Jasper (100%), Zinc concentrate (99%), Lead concentrate (80%), Gypsum (93%), Marble (90%), Asbestos (89%), Rock Phosphate (75%), etc.

Rajasthan is the second largest producer of glass, ceramic raw material clay and of silica. Rajasthan is the third largest producer of lime stone in the country after Madhya Pradesh and Andhra Pradesh. Extensive deposits of cement grade lime stone are located in the districts of Chittorgarh, Bundi, Banswara, Kota, Nagaur, Pali, Jaiselmer, Jaipur and Bhilwara. Rich lime stone deposits at Gotan in Rajasthan are best available in the country for white cement. Float glass & plate glass, super phosphate and urea plants, high–tech ceramics for industrial use, sanitaryware, abrasives, refractories etc. are some project ideas based on exploiting the extensive minerals reserve in Rajasthan.

Good quantity of crude petroleum and gas has been located in Barmer and Jaisalmer Districts, and the State Government is pursuing at highest levels for having a refinery in the State. Lignite is also available in huge quantity and can be deployed for power generation.

Tourism: Rajasthan with its rich historical, cultural and environmental heritage coupled with colourful fairs and festivals and popular tourist products has become one of the important tourist destinations for both domestic and foreign tourists in India. Some of the tourism attractions of Rajasthan are internationally famous and popular such as Palace on Wheels, Heritage Hotels, Jaipur (the Pink City), Udaipur (the City of Lakes), Jaisalmer (the dream city of “Sonar Kila” the Golden Fort), Bharatpur with its Keoladev Bird National Park, Sawai Madhopur and Sariska (Alwar) Tiger Games Sanctuaries are all a part of the legend of the State. Rajasthan is full of Forts, Temples, Ramparts, Palaces, Pillars and Tombs in every nook and corner. Rajasthan also has a rich tradition of folk music, folk dances, puppetry etc., besides being the birth place of Jaipur Gharana Kathak dance form which has acquired fame all over the world for its unique form.

The colourful and vibrant fairs, as well as the romantic, rhythmic and reinvigorating festivals add to the Rajasthani culture. Fairs, as a form of mass recreation, are very popular in Rajasthan. All the year round, there is a regular cycle of fairs held in various parts of the State. The Annual Cattle Fair at Pushkar, Tejaji Fair at Parbatsar, Kapil Muni Fair a Kolayat, Ramdeoji Fair near Pokhran, Kaila Devi Fair near Kaurali, Sheetla Asthami Fair at Chaksu, Urs Fair at Ajmer, Karni Mata Fair at Deshnok, Teej and Gangaur festivals at Jaipur, Desert festival at Jaisalmer etc. are only a few of them.

Rajasthan is also home of numerous famous temples and Dargahs, including the one and only Lord Brahma’s temple in the country at Pushkar (Ajmer), Dargah of Khwaja Moinuddin Chisti at Ajmer, Lord Krishna’s Srinathji temple at Nathdwara in Mewar region and Govind Devji temple at Jaipur, Jain temples at Rikhabdev and Mahavirji, Balaji Hanuman temples at Salasar and Ghata Mehandipur. Dilwara Jain Temple at Mount Abu has highly intricate marble carvings in its architecture. Rajasthan thus offers tremendous potential in religious tourism. Rajasthan also boasts of good medical facilities and scope for medical tourism.

Recognizing the potential of various attractions that Rajasthan has to offer to domestic and foreign tourists, “Tourism” has been accorded the status of an industry eligible for various concessions and facilities. The State Government is constantly innovating to enhance the tourism experience. Heritage Monuments are being turned into ‘living monuments’. New tourist circuits and new attractions like Adventure tourism, rural tourism, ‘Heritage on Wheels’, ‘Place on Wheels’, ‘Rajasthan Day Celebrations’, Balloon Safari, River Cruises, Sound and Light shows have been developed. Rajasthan is also emerging as a preferred destination for lavish royal style marriages, not only for local populace but also for wealthy NRIs and even foreigners.

There is thus tremendous scope for investment in hospitality sector and various types of tourism promotion projects.

Power: Rajasthan is blessed to have all kinds of power plants – Thermal, Nuclear, Hydel, Solar and Wind Power Plants, with total existing generating capacity of about 9000 MW, and expected addition of another 2500 MW by 2013. The State Government is pushing hard to have further power generating capacity of 8000-9000 MW in thermal and nuclear plants in next 5 years so as to become a power surplus State.

Rajasthan is also aggressively pursuing non-conventional sources of energy. It receives solar radiation in the range of 5.5 to 6.8 KWH per sq. metre. According to an estimate, there is a whopping 1.5 lakh MW untapped potential of solar energy in this part of the country. Under Rajasthan Solar Energy Policy 2011, solar power plants of 1500 MW are expected to be commissioned by 2013. Under the Jawaharlal Nehru National Solar Mission and other schemes, 76 projects of total 924 MW capacity have been approved, which is the maximum in the country. The solar energy generation plans of the State Government would get tremendous boost from its tie-up with the US based Clinton Climate Initiative to set up solar parks in Jaisalmer and Jodhpur. These are expected to attract investment of Rs. 50,000 crore in the next 5 years.

The Wind energy potential in the State is estimated at about 5400 MW. Upto Dec. 2010, total wind power installed capacity was of the order of 1337 MW. Besides these, 8 plants with 86.3 MW capacity of bio-mass based power generation have also been installed.

Industrial Scenario of Rajasthan: Rajasthan is becoming a dynamic and vibrant State for attracting investment not only from Indians but even foreign multinationals. Well known industrial houses of countries such as the USA, UK, Sweden, Japan Italy, Germany, France etc. have made investments here, including Honda Motors, Genpact, Ericsson, Gillette, Bausch & Lomb, MICO, Electrolux, Lafarge Cements, St. Gobain Glass, etc. In fact, a special zone has been created at Neemrana for Japanese companies. Big Indian industrial houses like Birlas, Singhanias, DCM, etc. also have their units in the State.

RIICO has developed 322 industrial areas with fully developed infrastructure. Numerous special purpose industrial parks/complexes, such as Export Promotion Industrial Parks (3), Handicrafts Parks (2), Agro Food Processing Parks (4), Leather Complex (1), Apparel Park (1), Stone Parks (2), IT Parks with special infrastructure (4), Textile Parks (5), Bio-tech Parks (3), Auto Components (2), Speices Board (1) etc. Special Economic Zones have been established at Sitapura in Jaipur for gems & jewellery, at Boranada in Jodhpur for handicrafts, multi-product zone at Mahindra World City in Jaipur, etc., and a few more SEZs are under implementation.

Developed Physical Infrastructure: Rajasthan is actively pursuing extensive road connectivity through out the State and has put in place a sound policy and legal framework to encourage private participation for road development. Substantial investments have been made over the past 2-3 years for strengthening and recarpeting of existing roads, construction of missing links, construction of rail over-bridges, highways under BOT scheme, 4-laning and 6-laning of major national and state highways etc.

Rajasthan is also well integrated with the national railway network and is connected with major cities through direct rail lines. Commercial airlines offer services to Jaipur, Udaipur and Jodhpur. Jaipur is soon going to have metro rail.

Jaipur also has fully operational International Airport with direct flights to Dubai and Singapore. The State Government is making efforts to promote and invite private enterprise/investment in the aviation sector and a new Aerotropolis is expected to come up on Jaipur-Delhi route. Rajasthan is also very well developed in respect of telecommunication facilities.

Social Infrastructure: Rajasthan also has well developed social infrastructure. It has a vast network of primary, secondary and higher education institutions, including prestigious Institutions like Indian Institute of Management, Indian Institute of Technology, Indian Institute of Rural Management, L.N. Mittal Institute of Information Technology, a number of Engineering Colleges, Medical Colleges, Technical Universities, Agricultural University, and Homoeopathic University etc. Good vocational training facilities are also available. Rajasthan has earned a special place in education sector, in particular for competitive examinations.

The State also has good healthcare facilities through out the State for providing cost-effective quality medical care. Clubbed with traditional hospitality and heritage attractions of Rajasthan, Rajasthan is becoming an important destination for patients from various parts of the country and even abroad. Medical tourism is one of the stated priorities of the State Government.

Government Measures for Investment Promotion: The State Government has been making sincere efforts for mobilizing investment into the State, with various policy pronouncements, some of which include Rajasthan Industrial & Investment Promotion Policy 2010, Rajasthan Investment Promotion Scheme 2010, Rajasthan Tourism Policy, Special Scheme for Hotels/Amusement Parks/Cinemas, Rajasthan Special Economic Zones Policy 2003, IT & ITeS Policy 2007, Special Incentive Package for Agro Food Parks, Incentives for Hospitals & Nursing Homes, Incentive Package for Projects set up at Growth Centres, etc.

For improving the delivery system, the Rajasthan Government has launched a Single Window system by way of an enactment called Rajasthan Enterprise Single Window Enabling & Clearance Act 2010 which now extends to all the Districts and aims to provide for a statutory mechanism bounding on various Departments and Officials for providing time-bound clearances and permissions for enterprises.

Other Factors: Other factors favouring Rajasthan include proximity to important centres like Delhi, Gujarat etc., cordial industrial climate, stable political situation, large impact zones of Dedicated Freight Corridor and DMIC, transparent and sensitive governance, etc. Whereas there is acute shortages of land in nearby areas like Delhi, Haryana etc., Rajasthan offers abundant availability of land.

Jaipur was ranked at the third place after Bangalore and Hyderabad in the composite index of “Ease of Doing Business” in the World Bank Study ‘Doing Business in South Asia 2007’.

* Dr. K.L. Jain - Hony. Secretary General, Rajasthan Chamber of Commerce & Industry

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