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Major Industries
Policy Framework

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Major Industries

Mining and Mineral Based Industries

The potential for growth in mining and mineral based industries is immense. This sector has huge potential for attracting large investments to create employment and raise resources. It would be the endeavor of the state government to expedite the granting of mining leases and simplify the procedures with respect to the grant of mining leases. In addition, the state government would also provide certain relief to make mining activities easier.

Concerted efforts are being made to expedite / undertake survey / exploration of mining resources. Modern methods of exploration like remote sensing, arrow magnetic survey and other methods are being used to set up the resource inventory of various minerals in the state. The state government encourages participation of reputed private parties, multinationals and central and state agencies in this exercise.

The state government encourages joint venture projects with State Mineral Development Corporation (SMDC) especially in the field of mining. Private sector is being encouraged to take up mining activities in the state. Mining lease applications along with project report and all relevant documents would preferably be disposed off within a period of 60 days of the filing of such application. Suitable steps are also being taken to adopt state of art technology in mining activities. For this, the government promotes private sector participation and would offer a package of reasonable concessions on case-to-case basis. To ensure raw material linkage to mining-based and other industries, priority in granting mining leases to such industries and other such facilities shall be extended.

Drugs and Pharmaceuticals

The Indian pharmaceutical industry is one of the largest and most advanced and well organized among the developing countries. It is rapidly growing and is expected to hit US$ 75 billion by 2020 and create 1.8 million additional employment. Jharkhand offers excellent opportunities for growth of the pharmaceutical industry, owing to the following advantages:

  • Availability of trained and skilled manpower
  • Facilities for research and development
  • Excellent rail, road connectivity, air linkage, and telecommunication facility
  • Facilities of ports at Paradip and Haldia port
  • Inland container depot at Jamshedpur
  • Environmental protective measures are in place
  • Single window clearance
  • Facilities for Indian/ global MNCs to set up their JV/ 100% manufacturing units

Investment opportunities exist in the drugs and pharmaceutical sector with respect to the following activities:

  • Manufacturing of medicines to cater to the huge domestic market.
  • Export of pharmaceutical products to developed as well as developing countries.

Information Technology

The state government is fully committed to make Jharkhand an IT powerhouse and a front-runner in the information revolution. The state is focused for proliferation of IT into the day-to-day life of its citizens and uplifting the standard of living. Jharkhand has recognized that IT shall play a significant role in achieving its policy objectives like economic development, enhancing the quality of life, and providing good governance to its citizens and hence aims to create an ambience to target for a $5 billion annual export from Jharkhand IT industry by 2010.

Special incentives for IT industry

  • Exemption from environmental clearance
  • Exemption from zoning regulations for purpose of location
  • Self-certification on compliance of several Acts
  • 0.25 per cent rebate in allotted land cost per job created
  • Rebate on registration charges and stamp duty for sale/lease of space for establishing IT infrastructure
  • At least 30 per cent employment to Jharkhand residents.

Steel Industry

Steel is an inseparable part of human civilization and is essential to the country's economic development. Today, India is developing as an emerging giant in the field of Iron and Steel and the National steel policy envisages production of 110 million ton steel by 2020. The demand for steel is increasing within the country with all round acceleration in industrial activity.

Jharkhand has total reserve of 3218.08 million tonnes hematite areas accounting for about 30 per cent of the national reserves. Large public and private sector industrial units including TATA Steel, Bokaro Steel and Usha Martin among others have utilized the immense opportunities in the steel sector in Jharkhand and have triggered an industrial revolution in the process.

Agriculture and agro-based industries

One of the main strategies for development of Jharkhand state is to ensure agricultural and rural development on sustainable basis with capacity building being the focal point for the developmental endeavor.

For the purpose of agricultural development, special emphasis is being laid on technological aspects, ensuring new, cheap and timely availability of inputs.

In agricultural sector there is scope for bringing additional area under cultivation through vertical and horizontal expansions, increasing area under irrigation, increasing production and productivity of food crops through optimum utilization of inputs like seeds, fertilizers, pesticides, agricultural tools and implements, etc.

Besides these horticultural development has vast potentialities not only in terms of meeting the local requirements of fruits, vegetables, flowers, medicinal and aromatic plants but also in terms of exploiting the opportunities for exports. Similar is the situation with the livestock enterprises with respect to increasing milk, meat and egg production. Favourable agro-climatic conditions allow round the year production of varieties and "off-season" vegetable (such as brinjal, cabbage, cauliflower, ladies-finger, onion, peas, potato, pumpkin, mushroom, capsicum and green chilly) and fruits (such as mango, leechi, guava, banana, papaya, lemon, hack fruit, amla and others). There is vast scope in the state for establishing food processing units including those of fruit and vegetable preservation, milk and meat preservation and for processing of minor forest produce.

Jharkhand has a leading advantage for agro-based industries owing to the following factors:

  • Availability of land for setting up post -harvest infrastructure.
  • Hassle- free single window clearances
  • Assured water and power connections
  • Capital investment subsidies in addition o APEDA/ NHB subsidies
  • Sales tax concessions and tax holidays
  • Facility of Special Economic Zone at Jamshedpur
  • Agri- export zone for vegetables and fruits at Ranchi linked with major production centres.
  • Joint venture possibilities with Jharkhand State Agriculture Marketing Board and Department of Industries, Jharkhand.
  • Technical knowledge back up from horticulture and agro-forestry research centres.
  • Immense scope for contract farming/organic farming
  • Luxuriant forest covers rich in natural medicinal plants

Based on the availability of raw materials, infrastructure as well as domestic and export needs, investment opportunities for potential investor has been identified in the following areas:

  • Grain holding and storage
  • Creating food processing facilities
  • Producing juices, pulps, extracts of fruits and vegetables, canned fruits and vegetables
  • Brined, picked and pasteurized vegetables offer export prospects
  • Cold chain infrastructure for perishable fruits and vegetables

Forest based industries

Forest based industries come into the picture primarily because of an ever-increasing demand for power in the country. The fossil fuel resources are estimated to last only for the next 50 years and bamboo biomass has been identified as an alternative source of bio-energy. The technical feasibility of using bamboo in biomass gasifiers has been versified and confirmed by the Indian institute of Science, Netpro Renewable Energy (India) Ltd. Bangalore and other Institutions in the country. It is estimated that the woody biomass production of bamboo at the rate of 15 tonnes / ha of marginal land with protective irrigation can yield adequate biomass to run 1 MW power generation plant effectively. The use of bamboo for power generation can mitigate the rural power crisis, achieving self - sufficiency in power supply.

Also, huge investment potential is there for:

  • Units engaged in bamboo-based laminates, composites, boards, plywood etc.
  • Tasar & Lac based industries.
  • Medicinal plants sector for propagation, value addition, processing etc.

Thrust Areas

The state has identified a number of thrust areas on the basis of the following criterion:

  • Availability of raw material
  • Market
  • Manpower resources
  • Linkage with larger units
  • Sustainability aspects
  • Capacity to generate employment

The thrust areas identified on the basis of above parameters are:

  • Mining and Mineral Based Industries
  • Agro Based Industries
    • Cattle food
    • Jute, hemp, sisal and other fabrics
    • Tea cultivation, processing and packaging
    • Paper
    • Floriculture
    • Horticulture
  • Industries based on medicinal and aromatic plants
  • Sericulture/ tassar
  • Forest based industry like shellac, bamboo, etc.
  • Engineering, auto components, iron and steel and steel based down stream industries
  • Chemical based industries
  • Power generating and allied industries
  • Electronic and It based industry
  • Industries based on non-conventional energy
  • Live stock based industry
  • Industries based on recycling of wastes, eco friendly raw materials, and processes
  • Super specialty health services
  • Telecommunications and related products
  • Food processing industry
  • Tourism
  • Cold storage
  • Plastic and plastic based industries
  • Pharmaceuticals and drugs based industry
  • Leather based industries
  • Technical education
  • Ceramics
  • Sports goods
  • Packaging
  • Metallurgical industries including power intensive units like induction furnaces, ferro alloys, oxygen plants, graphite and gas plants, and calcium carbide plants.
  • Textile, hosiery, knitwear
  • Handicrafts and handloom based industries
  • Housing fixtures and related industries
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