INDIAN STATE : HARYANA

General Information

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, Uttranchal, 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.

Fact File

Geographical Area	0.44 (lakh sq. km)
Capital	Chandigarh
Population (2001 Census) In lakhs	211.45
Gross state Domestic Product at Current Prices (2004-05) (As on Feb 2006)	Rs. 83002.54 crores US$ 17.95686 bn
Gross state Domestic Product at Constant Prices (1993-94) for the Year (2004-05) ( As on Feb 2006)	Rs. 43501.62 Crores US$ 9.409446 bn
Net State Domestic Product at Current Prices (2004-05)(As on Feb 2006)	Rs 73645 Crores US$ 15.9479 bn
Net State Domestic Product at Constant Prices (1993-94) for the year (2004-05) (As on Feb 2006)	Rs 37983 Crores US$8.21615 bn
Per capita NSDP (state Income) at Current Prices(As on Feb 2006)	Rs 32712 US$ 707.538
Per capita NSDP (state Income) at Constant Prices (1993-94) (As on Feb 2006)	Rs 16872 US$ 364.930
Percentage of State Population to All India Population	2.06
Total Investments (as on Jan 2006)	81, 794
Growth rate in Primary Sector (including Agriculture and allied activities) on y-o-y basis	3.7%
Growth rate of Secondary Sector (Industry) on y-o-y basis	8.1%
Growth rate of Tertiary Sector (Services)	11.8%
Literacy Percentage Male Literacy Female Literacy	67.91% 78.49% 55.73%
Principal Language	Hindi, English

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.
• Large manufacturing, capabilities. Strong private sector.
• Developed banking system with over 4500 bank branches.
• Skilled manpower and professional management including engineers, managerial personnel, accountants etc.
• 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 Infrastructure

Road

Haryana has excellent network of passenger transport. It has total length of 23684 kilometers. The remotest parts of the state are linked with mettaled roads.
The state government proposes to construct Express highway and free ways for speedier vehicular traffic. Government encourages private sector investment in this sector for upgradation of roads, construction of ROB and BOT basis including four-lane ROB.

Key Features of the Road Sector

• National Highway No.1, with four-laning half-way complete, passes through Haryana from Delhi to Ambala, linking Punjab, H.P. and J&K.
• National Highway No.2, (Delhi-Mathura Road), with four-laning in progress passing through Faridabad and linking vast areas to U.P., M.P. etc. right up to Mumbai.
• National Highway No.8 (Delhi-Jaipur Highway), four-laning already taken in hand, passes through prestigious industrial estate Gurgaon, Industrial Model Township Manesar, and Growth Centre Bawal and linking vast areas right upto Ahemdabad and Bombay.
• National Highway No.10 passes through Haryana from Delhi to Dabwali.
• National Highways: 656 Kms
• State Highways: 3135 Kms
• District roads: 1587 Kms
• Rural and other roads: 17190 Kms

Power

Haryana has traversed a long way and achieved multi-pronged development. The power sector has served the dual function of turning the barren land of the state into lush-green fields and enhance the pace of industrial growth. The state has recognized that the power is one of the most important inputs for development process and hence has always given high priority to the expansion of electricity infrastructure.

Haryana is one of the pioneer states of the country to implement in-depth reforms in the power sector. An independent regulatory mechanism, Haryana Electricity Regulatory Commission, has been created and the erstwhile Haryana State Electricity Board has been restructured into four independent corporations to bring efficiency, economy and competition. These four entities are:

• Haryana Power Generation Corporation Ltd. (HPGCL) for the generation of power.
• Haryana Vidyut Prasaran Nigam Ltd. (HVPNL) for the transmission and distribution of power within the state of Haryana.
• Uttar Haryana Bijli Vitran Nigam Ltd. (UHBVNL) for north circle of Haryana.
• Dakshin Haryana Bijli Vitran Nigam Ltd. (DHBVNL) for south circle of Haryana.

Key features of the power sector

• Haryana has a total installed contracted generation capacity of 4039 MW including 1587.4 from own generating stations, 937.50 MW from jointly-owned projects and 1514 MW as share in central/ private power projects.
• Haryana was the first state in the country to achieve 100 per cent rural electrification in 1970.
• The state gives highest priority to the agriculture sector. Over 50 per cent the available power is allocated to the rural sector against the all India average of 26 per cent.
• Power supply to the agricultural sector is highly subsidized to the tune of Rs. 1250 crore per annum.
• Per capita consumption of the power is 609 units.

New Projects in the Pipeline

Project	Capacity in MW	Status
Deenbandhu Chhotu Ram Thermal Power Project -Yamuna Nagar	600 MW	First unit of 300 MW to be operational in November 2007 and second unit in February 2008.
Hisar Thermal Power Project	1000/1200 MW	The process of competitive bidding for setting up this project on EPC basis is under progress. The project is scheduled for commissioning during 2009-10.
Coal Based Thermal Power Project-Jhajjar	1500 MW (Haryana and Delhi to share 750 MW each)	MOU signed between NTPC, Govt. of Delhi and Govt. of Haryana. Project is scheduled for commissioning during 2010-11.
MOU/PPA signed for purchase of power from Central Government, states as well as from Private Sector Projects (IPP).	600 MW Central Sector plus 770 MW from IPPs	Scheduled to be commissioned during the period 2007-12.
IPP Coal Based Thermal Plant Mattanhail (Jhajjar)	1000/1200 MW	Tariff based competitive bids invited for setting up the project RFQ already opened. Project likely o be completed during the 11th plan.
Pet Coke based Thermal plant of 250 MW at Panipat.	250 MW	Project likely to be completed during the 11th plan.
Share in Ultra Mega Projects	1250 MW from Sasan-Mundra and Orissa Projects.	Competitive tariff based bids called by PFC. Project expected to start during 2011-12.
Tariff based competitive bids invited	2000 MW	Power to be procured under case 1, as per Ministry of Power guidelines.

Railways

Haryana is well connected on the rail network. The main railway routes passing through Haryana are:

• Amritsar-Delhi
• Rewari-Ahamdabad
• Bhiwani-Rohtak-Delhi
• Ambala-Ferozepur
• Delhi-Ferozepur
• Kalka-Jodhpur
• Kalka-Hawrah
• Amritsar-Hawrah
• Delhi-Shimla

A proposal is underway to provide rail corridor connecting towns around Delhi, linking the major satellite towns like Faridabad, Gurgaon, Bahadurgarh, Kundli etc. Similarly, it is proposed to provide rapid mass transportation system between Delhi and these satellite towns.

Communication

Haryana has a state- wide network of efficient telecommunication facilities. Bharat Sanchar Nigam Limited (BSNL) and most of the leading private sector players (such as Reliance Infocom, Tata Teleservices, Bharti Telecom, Idea and Hutchison Essar) have operations in the state.

Financial Services

Term Loans

Haryana State Industrial Development Corporation provides term loan upto Rs. 4 crore (Rs. 2.50 crore under IDBI refinance scheme) to the projects with a capital cost not exceeding Rs. 10 crore. The projects with investment beyond Rs. 10 crore are also considered on selective basis for financing. Haryana Financial Corporation (HFC) also provides term loans upto Rs. 2.40 crore to the units where capital and free reserves are not more than 5 crore. The loan is to be paid normally in 7 to 9 years after a moratorium of one to two years, depending upon merits of each case. Projects having capital investment of Rs. 10 crore and above are financed by all India Financial Institutions like IDBI, IFCI, ICICI, LIC/GIC. Besides the industrial projects, the term loans are also available for setting up hospitals/nursing homes, tourism related facilities like hotels/amusement parks/cultural and goods transport services.

Merchant Banking

HSIDC started providing merchant banking services after getting category-I accredition from Securities and Exchange Board of India (SEBI) in 1992-93. An incisive foray has been made in the field of issue management since then. The Corporation also accepts the assignments of lead managers in addition to acting as advisors and co-managers to public issues besides carrying on the activity of providing underwriting support to public and right issues.

Equipment Refinance Scheme

HSIDC and HFC have been providing loan under Equipment Refinance Scheme to various industries in Haryana. Under the scheme, an existing unit with a good track record can avail assistance for replacement, marginal expansion or diversification. The loan under this scheme is availed within 6 months of the sanction and to be repaid with 2 to 5 years.

Leasing

HSIDC and HFC are also providing lease assistance under the Lease Finance Scheme.

Underwriting of Public Issues

HSIDC extends the underwriting support to public issues of those industrial companies, which have their base in Haryana.

Haryana has a wide institutional network for providing land, infrastructure and assistance to the entrepreneurs. It has formed various Industrial Promotion Agencies to tend to industries and help them grow and resolve their problems, if any, encountered by them.

National Equity Fund

HFC operates the scheme, promoted by SIDBI under the name of National Equity Fund Scheme, which provides equity type of support to entrepreneurs for setting up new projects under tiny and small-scale sectors. The promoter's contribution in this scheme is 10%. HFC provides 65% as term loan and SIDBI gives assistance of 25% as soft loan towards equity basis of the project. The project cost should not exceed Rs. 10 lacs. Similar scheme is also being operated under the name of Mahila Udhyam Nidhi Scheme specially meant for women entrepreneurs.

Social infrastructure

Health

The health department of Haryana is committed to provide quality healthcare services to the people of the state and to raise the health status of the people. The health services are being provided to the people of Haryana state through a well-connected network of 50 government hospitals, 81 community health centres, 408 primary health centres, 2433 sub centres, 12 district tuberculosis centres, 41 dispensaries, 2 mobile dental dispensaries and one postgraduate institute of medical education and research.

Education

The state of Haryana has made tremendous expansion in the field of higher education since its inception. It has been the endeavor of the government to make educational facilities available within the reach of the children. 32 primary schools, 69 middle schools and 101 high schools were upgraded to middle, high and senior secondary respectively during the year 2004-05. Now accessibility to schooling is available within the radius of 1.10 km, 1.38 km, 1.66 km and 2.79 km at the primary, middle, high and senior secondary level respectively.

Educational Institutions in Haryana at a Glance

Institutes	Number
Numbers of Colleges	261
Numbers of Universities	5
Engineering Colleges	40
MBA institutes	33
MCA institutes	32
Bachelor of Pharmacy institutes	17
Hotel Management Institutes	1
M.Tech courses	10
Polytechnics	43
HARTRON approved Computer Training Centers	50
ITI & Vocational Education Institutes	192
Numbers of High/Senior Sec. School	5096
Numbers of middle School	2307
Numbers of Primary School	11655

Thrust Areas

The state Industrial Policy for 2005 has identified the following thrust sectors on the basis of their growth potential and long term sustainability:

• Agro based and Food Processing Industry
  • Steps have been taken to establish infrastructure to promote this sector
    
  • Food testing laboratories would be developed to facilitate production of quality food processed products.
    
  • Steps shall be initiated to suitably amend the Haryana Agricultural Produce Marketing Act, to enable procurement of notified agricultural produce by food processing industry and cold chains directly from the farmers.
    
• Electronics and Information & Communication Technology
  • Government shall facilitate private sector investment in developing Special Economic Zone exclusively for Electronic and Information &communication industry.
    
  • A State Wide Area Network shall be set up in public private partnership to provide high-speed connectivity for delivery of services in public and private domain.
    
  • Software industry will be permitted without locational restriction.
• Automobiles & Automotive Components.
  
  • IMT Manesar is fast coming up as a prominent cluster of automobiles and auto components.
    
  • Growth center Bawal is another area where a number of projects for the manufacturing of auto components are in the pipeline.
    
  • The state government shall make efforts for establishing National Automotive Testing, Research and Development infrastructure Project in Haryana with assistance from Government of India
    
• Handloom, Hosiery, Textile and Garments Manufacturing
  
  • One Apparel Park would be developed within Special Economic Zone Gurgaon and one at Barhi under the Apparel Park for Exports scheme of GOI.
    
  • International Trade and Conventional center would be set up at Panipat to promote handloom products.
    
  • One International Trade Center will be established at Gurgaon for promotion of garments.
• Export- Oriented Units.
  
• Government will endeavour to set up Inland Container Depot in private or joint sector.
  
• Freight subsidy will be provided to exporters.
• Footwear, leather garments and accessories

Policy Framework

Industrial Policy 2005

The state has laid down the following objectives of the Industrial Policy

• Re-establish industry as a key driver of economic growth.
  
• To create wealth for the residents of the state and improve the quality of their life.
  
• Generate employment and entrepreneurial opportunities across all sectors of the economy.
  
• Facilitate spatial dispersal of economic activities particularly in economically and socially backward regions of the state.
  
• To ensure sustainable development through investments in key sectors of economy

Strategy of the Policy

The State Government intends to realize the objectives of the policy by emphasizing a coordinated development strategy in mission mode approach. The strategy proposed by the state is outlined below

• Develop economic hubs through infrastructural initiatives.
  
• Encourage public-private partnership in infrastructure in infrastructure projects.
  
• Focus on economic activities enjoying a comparative advantage in the state in general and develop the food processing ICT and frontier technologies in particular.
  
• Promote mega projects with economic spin-off potential, particularly in backward regions.
  
• Adopt sector-specific approach, providing incentives and infrastructural support, for the synergetic growth of key enterprises.
• Develop services sector especially tourism, transport, education, healthcare and financial services.
  
• Focus on development and support to the small and medium enterprises.
  Enhance export-competitiveness and enable Compounded Annual Growth Rate of 20 per cent.
  
• Create investor-focused approach in administrative process and bring about efficiency, transparency and accountability using modern technological and management solutions.
  
• Strengthen the grievance redressal mechanism.
  
• Human resource development by establishing strategic linkages between the industry and technical institutions to meet future manpower requirements.
• Continue with fiscal reforms and prudent public finance management to release resources for deployment in key public investment areas.

Full text of the policy

Information Technology Policy-2000

The State Government of Haryana recognizes the role of It as an effective tool in catalyzing economic activity, in efficient governance and in developing human resource. The vision of the information technology policy is to transform Haryana into an IT driven economy.

Objectives of the Policy

The government strives to make Haryana an IT driven economy by achieving the following objectives:

• Upgrading the standard and quality of administration, particularly in social and public services sector through a process of modernisation and rationalization of the administrative set up,
  
• Providing public centered, efficient and cost-effective Government
  
• Extensive percolation of IT literacy and education in the State,
  
• Promoting investments in IT industry
  
• Encouraging private sector initiative in IT related infrastructure and services
  
• Increasing the share of IT in State Gross Domestic Product
  
• Generating IT related employment opportunities, and
  
• Enhancing earning capacity of the residents thereby ensuring a better quality of life.

Full text of the policy

SEZ Policy

Governor of Haryana has formulated this policy to facilitate acquisition of land for private deployment and in public-private partnership for setting up of Special Economic Zones, Technology Cities, Industrial Parks and Industrial Model Townships etc. this policy will come into force with immediate effect.

Full text of the policy (.pdf)

Labour Policy 2006

The policy has been devised in order to ensure the implementation of labour laws and create an enabling environment for enhancing productivity, competitiveness and labour welfare.

Aims of the Policy

• Evolve a mutually and increasingly beneficial partnership between employers and workers.
  
• To help create conditions in which workers can make their maximum contribution towards increasing productivity while their rights are protected and their exploitation is prevented.
  
• To ensure the welfare of workers along with economic progress and stability.
  
• To help the employers and workers to cooperate continuously and resolve their differences amicably through social dialogue
  
• Foster peaceful and in-house settlement of disputes.

Objectives

• To facilitate the growth of industry in Haryana by fostering harmonious industrial relations.
  
• To ensure social justice with productivity and growth of industry.
  
• To promote industrial health and safety
  
• To implement labour laws for ensuring proper working conditions and labour standards.
  
• To introduce new labour welfare measures for enhancing the quality of life of the work force.
  
• To create ever improving conditions for women workers by following policies, which take into account their special needs at the workplace.
  
• To eliminate employment of all forms of child labour through identification and rehabilitation.
  
• To energise Vigilance Committees at District and Sub Division level for identification
  
• Release and rehabilitation of Bonded Labour.
  
• To provide and improve quality health care to workers through the ESI run hospitals and ensure their future security through implementing the Employees Provident Fund Scheme.
  
• To strengthen the conciliation machinery towards achieving the objectives of a Harmonious worker- management relationship, keeping in view the changing economic scenario.
  
• To continuously strengthen and facilitate the functioning of the Labour Courts, in cases where conciliation has failed.
  
• To train and retrain its employees and officers so that they are better equipped to perform their duties.
  
• To work in a transparent and time bound manner in dealing with approvals required under various labour laws.
  
• To work in a transparent and time bound manner in dealing with approvals required under various labour laws
  
• To work towards creating an atmosphere wherein both workers and management perform their legally laid down roles, which will, in turn, contribute to the economic growth of the state.

Full text of the policy (.pdf)

Investment Incentives

The state is providing multitude of incentives and concessions in order to attract Investment- both domestic and foreign direct investment:

• Incentives for mega projects in backward areas
  
  
  • Mega project with investment of US$ 216.275 billion and above or any project employing more than 500 persons irrespective of investment to be set up in the backward areas would be extended the facility of financial assistance to be quantified at, 50% of the tax paid on the sale of goods produced by such industrial units, under the Haryana Value Added Tax Act 2003 for a period of 7 years from the date of start of commercial production, as Interest Free Loan (IFL) repayable after a period of 5 years from the date of grant of IFL.
    
    
  • Exemption from Local Area Development Tax (LADT) for a period of 5 years.
    
    
• Incentives for SSI in Backward Areas
  
  New SSI units in the backward areas would be extended the facility of financial assistance in the shape of Interest Free Loan to be quantified at, 50% of the tax paid on the sale of goods produced in such industrial units, under the Haryana Value Added Tax Act 2003 for a period of 5 years from the date of start of commercial production to be repayable after a period of 5 years.
  
  
• Incentives for Exporting Units
  
  In order to boost the exports and enhance competitiveness of exporting units, subsidy up to 1% of the FOB value of exports subject to maximum of US$ 21,708.40 per annum shall be given.
  
  
• Incentives for Food Processing Industries
  
  
  • Food Processing Industries except wheat & rice will be considered as seasonal industry and exempted from payment of minimum demand charges for electricity during closer period of more than 3 months.
    
    
  • No market fee shall be levied on agriculture and horticulture produce used as raw material by Food Processing Industries with in the State except rice, wheat, mustard oil and cotton.
    
    
  • Interest Free Loan at the rate of 75% of the tax paid on the sale of goods produced in such industrial units shall be given under the Haryana Value Added Tax Act 2003 for a period of 5 years from the date of start of commercial production. This would be repayable after a period of 5 years.
    
    
  • Charges for Change of land use for food processing units shall be levied @ 50% of normal rates in state declared backward areas.
    
    
  • Wines/liquors/Brandy etc. made from 100% fruits produce in the State will be
    exempted from the Excise Duty in backward areas
    
    
• Exemption/Concessions are allowed to the VAT dealers by the State Government

*Incentives and privileges already being enjoyed by units under previous policies shall continue as mentioned in Appendix I to Industrial Policy 2005. The new scheme of incentives shall be applicable to units coming in commercial production after the commencement of this policy. Export incentives shall be available to existing units as well.

Incentives and Concessions shall be available only to those units, which do not fall in the negative list given in Appendix III of the Industrial Policy 2005

The list of State Declared Backward Areas is given in Appendix IV of the Industrial Policy

Prestigious Multinational companies operating in Gurgaon

• Motorola
  
• Siemens
  
• Hughes Software systems
  
• GE Capital
  
• GE Plastic
  
• IBM
  
• Silicongraphics
  
• Bectel
  
• Polaroid
  
• Alcatel
  
• Duracell
  
• Delphi
  
• Perfetti
  
• Norcool
  
• Denso
  
• Tell labs
  
• Daewoo Telecom Limited

Useful Weblinks

Government of Haryana

Investment Promotion Center, Government of Haryana