RAJASTHAN - IBEF · State economy and socio-economic profile ... Rajasthan has favourable...

RAJASTHANApril 2010

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Investment climate of a state is determined by a mix of factors

Investment climate of a state

• Skilled and cost-effective labour• Labour market flexibility• Labour relations• Availability of raw materials and natural

resources

• Tax incentives and exemptions• Investment subsidies and other incentives• Availability of finance at cost-effective terms• Incentives for foreign direct investment (FDI)• Profitability of the industry

• Procedures for entry and exit of firms• Industrial regulation, labour regulation, other

government regulations• Certainty about rules and regulations• Security, law and order situation

• Condition of physical infrastructure such as power, water, roads, etc.

• Information infrastructure such as telecom, IT, etc.

• Social infrastructure such as educational and medical facilities

Resources/Inputs

Incentives to industry Physical and social infrastructure

Regulatory framework

RAJASTHAN April 2010

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Contents

Advantage Rajasthan

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Rajasthan


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Rajasthan – State profile

• Covering an area of 342,239 sq km, Rajasthan is the largest state in India.

• The state has 33 administrative districts. Jaipur is the state capital;Jaisalmer, Udaipur, Jodhpur, Ajmer, Bikaner, Alwar, Amber and Chittorgarh are the other key cities and towns in the state.

• There are two major rivers flowing through Rajasthan: the Chambal and the Luni.

• The state has nine agro-climatic zones and a variety of soils that support cultivation of crops such as wheat, rapeseed, mustard, soy bean, bajra(millet), maize and cotton.

• The most commonly spoken language of the state is Hindi. Marwari, Jaipuri (Dhundhari), Mewari and Malvi are the other dialects popular in the state. English is the medium of education in most schools.

Source: Maps of India

Rajasthan April 2010ADVANTAGE RAJASTHAN

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Easy access to largest consumer marketsRajasthan touches six major states of the Northern, Western and Central India. It is a natural corridor between the wealthy Northern and the prosperous Western states of the country, which makes and important trade and commerce centre.

Facilitating infrastructure Rajasthan has well-developed social, physical and industrial infrastructure as well as good virtual connectivity. The state is developing sector-specific infrastructure such as special purpose industrial parks and special economic zones for exports of handicrafts , IT and electronic goods.

Advantage Rajasthan … (1/2)

Policy and fiscal incentivesThe state offers a wide range of fiscal and policy incentives for businesses, through well drafted sector-specific policies for the tourism, biotechnology, IT and ITeS industries.



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Basket of unexploited resources The state offers a variety of unexploited agricultural and mineral resources, which is indicative of scope for value addition and exports.

Conducive environment for industrial growthRajasthan has favourable industrial relations environment with negligible incidents of labour unrest. In addition, the law situation in the state ensures good working environment.

Competent talent pool Rajasthan has been investing in capacity building through development of a strong institutional network at all levels. The state has 1,042 colleges including 78 engineering colleges, 58 polytechnic institutes and 666 industrial training institutes (ITIs).

Advantage Rajasthan … (2/2)

Unique tourist attractionsRajasthan’s rugged forts, beautiful palaces, picturesque Thar Desert, bird sanctuaries and national parks, lively fairs and festivals, lakes and mountains, fascinating handicrafts and colourful culture make the state an attractive destination for domestic and foreign tourists.



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Rajasthan in figures … (1/2)Parameter Rajasthan All-states Source

Economy

GSDP as a percentage of all states’ GSDP 4.4 100.0 CMIE, 2006-07, current prices

Average GSDP growth rate (%) 11.5 7.5 CMIE, 1999-2000 to 2007-08

Per capita GSDP (US$) 640.1 998.1 CMIE, 2007-08

Physical infrastructure

Installed power capacity (MW) 4,702.9 98,996.4 Central Electricity Authority, as of March 2009

GSM cellular subscribers (No) 21,366,634 367,328,179Cellular Operators Association of India, as of November 2009

Broadband subscribers (No) 145,449 4,981,976 As of October, 2008

National highway length (km) 5,585 70,548 Ministry of Road Transport & Highways, 2007-08

Airports (No) 6 133 Industry sources

Social indicators

Literacy rate (%) 60.4 64.8 Census of India, 2001

Birth rate (per 1,000 population) 27.9 23.1 Central Bureau of Health Intelligence, 2007


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Parameter Rajasthan All-states Source

Ease of doing business

FDI inflows (US$ billion) 0.5 102.1 Department of Industrial Policy & Promotion, April 2000 to October 2009

Outstanding investments (US$ billion) 26.6 1,709.7 CMIE, as of December 2008

Industrial infrastructure

PPP projects (No) 51 460 www.pppindiadatabases.com

SEZ (No) 7 98 Notified as of April 2009, www.sezindia.nic.in

Parameter Rajasthan Government

Policy support

Sectors with specific policies Healthcare, biotechnology, IT and ITeS, tourism, non-conventional energy

Availability of labour Adequate skilled labour available

Rajasthan in figures … (2/2)

PPP: public-private partnership, SEZ: special economic zone


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Key industries with policy thrust and factor advantages

Industry attractiveness matrix

Mining and metals

Cement

Auto components

IT/ITeS and Electronics

Biotechnology

Polic

y th

rust

High

Factor advantageLow Medium High

*Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital

Medium

Tourism


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Contents

Advantage Rajasthan







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Socio-economic snapshot of Rajasthan

Parameters Rajasthan

Capital Jaipur

Geographical area (sq km) 342,239

Administrative districts (no) 33

Population density (persons per sq km)* 165

Total population (million)* 56.5

Male population (million) 29.4

Female population (million) 27.1

Population growth rate 1991-2001 (%) 17.3

Sex ratio (females per 1,000 males)* 921

Literacy rate (%)* 60.4

Male (%) 75.7

Female (%) 43.9

Average life expectancy (years)MaleFemale

62.262.8

Sources: Economic Survey of Rajasthan 2008-09, Directorate of Economics and Statistics*Census 2001

Rajasthan April 2010

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

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17.7517.07

19.1019.42

25.5425.95

28.5835.44

42.2741.74

0.0 10.0 20.0 30.0 40.0 50.0

1999-20002000-012001-022002-032003-042004-052005-062006-072007-082008-09

CAGR10.0 %

Rajasthan’s GSDP

• At current prices, the Gross State Domestic Product (GSDP) of Rajasthan was about US$ 41.7 billion in 2008-09.

• The average annual GSDP growth rate, from 1999-2000 to 2008-09 was about 10.0 per cent.

Rajasthan’s GSDP (US$ billion)

Source: CMIE



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15.9215.07

16.8416.80

22.4822.65

24.7230.74

36.7436.36

0.0 10.0 20.0 30.0 40.0

1999-20002000-012001-022002-032003-042004-052005-062006-072007-082008-09

CAGR 9.60 %

Rajasthan’s NSDP

• At current prices, the Net State Domestic Product (NSDP) of Rajasthan was about US$ 36.4 billion in 2008-09.

• The average annual NSDP growth rate between 1999-2000 and 2008-09 was about 9.6 per cent.

Rajasthan NSDP (US$ billion)

Source: CMIE



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The tertiary sector has largest share in Rajasthan’s economy

• In 2008-09, the tertiary sector contributed 57 per cent to Rajasthan’s GSDP at US$ 17.6 billion. It was followed by the primary sector, contributing 40 per cent (US$ 12.2 billion).

Percentage distribution of GSDP

40%

3%

57%

Primary

Secondary

Tertiary

42%

3%

55%

Primary

Secondary

Tertiary

Source: CMIE



1999-2000 2008-09

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325.9 305.4333.3 332.8

429.2 427.7462.4

563.0

659.7 640.1

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Per capita GSDP

• In 2008-09, Rajasthan’s per capita GSDP at current prices was US$ 640.1.

• The per capita GSDP at current prices increased at a CAGR of 7.8 per cent from 1999-2000 to 2008-09.

Per capita GSDP

Source: CMIE



US$

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Distribution of households by income … (1/2)• The per capita income of Rajasthan was US$

640.1in 2008-09.

• The estimated percentage of population in Rajasthan below poverty line is 12.11 per cent as compared to 26.1 per cent at the all-India level.

• The share of urban households in educated and self-employed category in the state is in line with the all-India average.

Percentage distribution of rural households by SEC*

Percentage distribution of urban households by SEC*

0 10 20 30 40 50 60

R1

R2

R3

R4

Rajasthan All-India

3.5

6.6

7.9

8.3

20.0

23.6

11.7

18.5

2.5

6.2

9.2

9.6

18.5

21.6

12.0

20.4

0 5 10 15 20 25

A1

A2

B1

B2

C

D

E1

E2

Rajasthan All-India

Urban

Rural

(%)

(%)

Source: BW Marketing Whitebook, 2009-10* See Annexure for SEC classification of households



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Distribution of households by income … (2/2)

Source: The Market Skyline of India 2006 by Indicus Analytics

Percentage ownership of household goods and vehicles, and electricity consumption

Percentage of rural population owning household goods and basic amenities

• Rural Rajasthan is ahead compared to all-India levels in ownership of assets such as sewing machines and ceiling fans.



10%

28%

61%

36%

17% 20%

58%

37%

0%

10%

20%

30%

40%

50%

60%

70%

Sewing machines

In-house toilets

Time clocks Ceiling fans

All-India Rajasthan

4%

18%

41%

64%

3%

19%

34%

62%

0%

10%

20%

30%

40%

50%

60%

70%

Four wheelers Two wheelers Televisions Electricity

All-India Rajasthan

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Key industries in Rajasthan

Key industries in Rajasthan

• Cement

• Auto and auto-components

• IT and ITeS

• Ceramics

• Mining

• Tourism

• Textile

• Agro-based industry

• Gems and jewellery

• Marble

• The natural resources, policy incentives and infrastructure in the state are favourably suited for investments in sectors such as cement, IT and ITeS, ceramics, tourism, automotive and agro-based industries.

• Bureau of Investment Promotion (BIP) and Rajasthan Industrial Development and Investment Corporation (RIICO) are responsible for promoting investments and developing industrial infrastructure in the state.

• The Government of Rajasthan is promoting development of several SEZs across the state for sectors such as gems and jewellery, handicrafts, IT, electronics and textiles.



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Wheat, rapeseed, mustard and soybean are the key agricultural products

Crop Annual production (‘000 tonnes)

Wheat 5,827

Rapeseed and mustard 2,754

Soybean 1,034

Cotton 920

Guar seed 750

Sugarcane 594

Rice 36

Arhar 18

• In 2007-08, the total production of the top eight crops of the state was over11.9 million tonnes.

• Wheat is the major crop of Rajasthan, with an annual production of 5.83 million tonnes. It is followed by rapeseed and mustard (2.75 million tonnes) and soy bean (1.03 million tonnes).

• The other key crops of the state are cotton, guar seed, sugarcane, rice and arhar.

• In 2006-07, Rajasthan was among India’s three largest producers of rapeseed and mustard, soybean and coarse cereal. Source: CMIE, 2007-08



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Rajasthan’s exports trends

• Rajasthan’s exports increased at a CAGR of about 27.7 per cent between 2001-02 and 2007-08.

• The state’s major exports include textiles, handloom, handicrafts, gems and jewellery, minerals and auto components.

• In order to boost exports from Rajasthan, the State Government is laying emphasis on developing export promotion industrial parks (EPIP).

• “Expocity Jaipur”, which serves as an international habitat and convention centre, has been developed by JaipurTrade Expo Centre Private Limited. It is spread over an area of 26,400 sq m and houses multi-utility homes, state-of-the-art business centres, entertainment zones, etc.

Source: Capital Markets

Annual exports growth trends (%)

7.1

39.5

23.0

15.9

33.5

141.0

-19.2

-50.0 0.0 50.0 100.0 150.0

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08



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8%

14%

29%18%

1%

30% Manufacturing

Mining

Electricity

Services

Irrigation

Construction

• According to the Reserve Bank of India, FDI inflows from April 2000 to October 2009 amounted to US$ 462 million.

• Of the total outstanding investments of US$ 30.4 billion as of December 2008, the construction and electricity sectors accounted for the major share, around 30 per cent each, followed by services (18 per cent) and mining (14 per cent).

Investments and FDI inflows

Break up of investments by sector

Source: CMIEAs of December 31, 2008



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Contents

Advantage Rajasthan







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Roads … (1/2)

• As of March 2009, Rajasthan had a total road length of 186,806 km comprising 5,714 km of National Highways, 11,751 km of State Highways and 7,658 km of major district roads.

• The road density in the state has increased from 53.3 km per 100 sq. km in 2007-08 to 54.6 km per 100 sq. km in 2008-09.

• Under various schemes such as the Missing Link project and the Central Road Fund, new roads are being constructed to link all villages in the state.

Road type Road length (km)

National Highways 5,714

State Highways 11,751

District roads 7,658

Source: Economic Review of Rajasthan, 2008-09


INFRASTRUCTURE STATUS

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• In 2008-09, 1,294 villages were connected under the Pradhan Mantri Gram SarakYojana (PMGSY).

• The Rajasthan Mega Highways Project for improvement and maintenance of 1,053 km of road is underway with an investment of US$ 326 million.

• As of March 2009, about US$ 314.9 million had been spent and 1,025.7 km of road had been constructed. This project is being implemented by Road Infrastructure Development Company of Rajasthan (RIDCOR).




Roads … (2/2)

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Railways

• As of March 2008, Rajasthan had a total railway network spanning 5,683 km, of which 3,885.4 km (68.3 per cent) was covered by broad gauge.

• The railway route length per 1,000 sq. km of geographical area was 16.6 km, as of March 2008.

• Important routes in the state are Jodhpur -Marwar, Jodhpur-Jailsalmer, Lalgarh-Kolayat and Lalgarh-Merta Road station.

• The Indian Railways also run famous luxury tourist trains – Palace on Wheels and Heritage on Wheels – that connect some of the important tourist destinations of Rajasthan with Delhi and Agra (in Uttar Pradesh).




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Airports

• The state has a fully operational international airport at Jaipur, with flights to Dubai, Sharjah, Bangkok and Singapore.

• Domestic airports are located at Jodhpur, Udaipur, Jaisalmer, Bikaner and Kota with regular flights from New Delhi, Mumbai, Kolkata, Hyderabad, Bangalore and Ahmedabad.

• An air-cargo complex at Jaipur, and inland container depots (ICD) at Jaipur, Jodhpur, Bhilwara and Bhiwadifacilitate trade within and outside India.

International airport

Domestic airport



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Telecom

• Rajasthan had 22.8 million cellular subscribers, as of March 2009.

• There were 4.7 million wire-line connections, accounting for 5.8 per cent of the country’s total wire-line connections.

• As of October 2008, the state had 140,000 broadband subscribers; the base has increased by1.5 times as compared to the previous year.

• The state has about 10,364 post offices and 2,338 telephone exchanges.

Telecom infrastructure

Cellular subscribers: 22.8 million

Internet/broadband subscribers: 145,449

Post offices: 10,364

Telephone exchanges: 2,338

Major telecom operators in Rajasthan

• Bharat Snchar Nigam Limited (BSNL)

• Bharti Airtel

• Tata Teleservices

• Reliance Communications

• Vodafone Essar

Sources: Economic Review of Rajasthan 2008-09, Telecom Regulatory Authority of India, Annual Report 2008-09



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Power … (1/2)

• As of March 2009, Rajasthan had a total installed power generation capacity of 4,702.9 MW comprising 4,006.9 MW (85.2 per cent) under state utilities and 696.1 MW (14.8 per cent) under the private sector.

• The capacity owned by the state utilities comprised about 64 per cent of coal-based power plants, 11 per cent of gas-based power plants and 25 per cent of hydro-power plants.

• The private sector controlled capacity is based on renewable energy sources, which are regulated by the Ministry of New and Renewable Energy.

• Renewable energy sources such as the wind power and the biomass are being actively promoted by the State Government.

Installed state and private capacity (MW)

Source: Central Electricity Authority

3,001.2

3,076.5

3,681.1

3,813.9

3,866.1

4,245.1

4,519.6

4,702.9

0.0 1,000.0 2,000.0 3,000.0 4,000.0 5,000.0

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09



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Power … (2/2)

Segment Name of company

Power generation Rajasthan Rajya Vidyut Utpadan Nigam Limited

Power transmission Rajasthan Rajya Vidyut Prasaran Nigam Limited

Power distribution Jaipur Vidyut Vitaran Nigam LimitedAjmer Vidyut Vitaran Nigam LimitedJodhpur Vidyut Vitaran Nigam Limited

• Raj West Power Limited, a wholly-owned subsidiary of JSW Energy Limited, is setting up a 1,080 MW (eight units of 135 MW each) lignite-based pit head power plant in the Barmer district. The estimated project cost is US$ 1.1 billion.

• As of March 2009, 37,288 villages have been electrified and about 900,000 wells have been energised under the Rural Electrification Programme.

• The Rajasthan State Electricity Board, formed in 1957, was restructured in 2000 to form the following companies:



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Urban infrastructure

• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 14 projects costing US$ 280.4 million have been sanctioned for the cities of Jaipur, Ajmer and Pushkar.

• Some of the key areas of development are mass-rapid-transport system, water supply, solid-waste management and sewerage management.

• In addition, Rajasthan Urban Infrastructure Development Project (RUIDP) has been sanctioned by the Government of Rajasthan with loan assistance from the Asian Development Bank (ADB). The towns covered under the project are Ajmer, Bikaner, Jaipur, Jodhpur, Kota and Udaipur. The key areas of development under this project are water supply, sewerage, drainage, roads and solid-waste management.

Sources: JNNURM, Ministry of Urban Development, http://www.ruidp.gov.in



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Project name Sector PPP type Project cost(US$ million) Stage

Gurgaon-Kotputli-Jaipur road Roads BOT-Toll 363.9 Construction

Mahapura (near Jaipur)-Kishangarh road Roads BOT-Toll 140 In operation

Palanpur-Swaroopganj road Roads BOT-Annuity 108.2 Construction

Mahua-Jaipur road Roads BOT-Toll 105 Construction

Bharatpur-Mahua road Roads BOT-Toll 54.3 Construction

Reuse of recycled-water-tertiary- treatment water plant Urban development BOOT 43.5 Under bidding

Jalmahel tourism project Tourism BOOT 43.4 Construction

Agra-Bharatpur (NH-11) road Roads BOT-Toll 42.3 Construction

Key public-private partnership projects

Source: www.pppindiadatabases.comBOT: Build-operate-transfer, BOOT: Build-own-operate-transfer, EOI: Expression of interest



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Rajasthan’s primary education statistics

Schools (No)*Lower primary: 55,369Higher primary: 34,211High schools: 13,667

Pupil-teacher ratio^ 28:1

Net-enrolment ratio in primary schools^ 99.5

Source :Economic Review of Rajasthan, 2008-09*As of 2007-08^ As of 2008-09

• The state had a literacy rate of 60.4 per cent according to Census 2001; the male literacy rate was 75.7 per cent and the female literacy rate was 43.9 per cent.

• As of 2007-08, the state had 103,247 schools comprising 55,369 lower primary, 34,211higher primary and 13,667 high schools.

• Rajasthan has made significant progress in the field of higher education, in recent years. There are 1,042 colleges in the state including 78 engineering colleges, nine medical colleges and 11 dental colleges.

• There are 134 ITIs (including eight for women) with 20,040 seats in the public sector and 532 ITIs with 46,866 seats in the private sector; they provide vocational training.

• There are 26 government-polytechnic colleges including seven women-polytechnic colleges, with a capacity of 4,540 students.

Education sector



Government medical institutes in Rajasthan

• Jawaharlal Nehru Medical College, Ajmer

• R N T Medical College,Udaipur

• Sardar Patel Medical College, Bikaner

• SMS Medical College, Jaipur

• Geetanjali Medical College and Hospital, Udaipur

• Jhalawar Medical College, Jhalawar

• Government Medical College, Kota

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Health infrastructure

• Rajasthan has a three-tier health infrastructure comprising primary health centres, health units, community health centres and sub-centres.

• A number of initiatives such as the Chief Minister’s ‘Jeevan Raksha Scheme’ and the World bank assisted ‘Rajasthan Health System Development Project’ have been taken up to improve the health-care facilities of the state.

Health infrastructure

• Government hospitals: 126• Community health centres: 349• Primary health centres: 1,540• Sub-centres: 10,742• Beds in government medical institutions: 42,360

Health indicators^

Population served per medical institution 4,369

Population served per hospital bed 1,372

Birth rate* 27.9

Death rate* 6.8

Infant mortality rate** 65

Life expectancy at birth (years)

Male 62.2

Female 62.8

Sources: Ministry of Health and Family Welfare, Economic Survey 2008-09^As of 2006-07*Per thousand persons**Per thousand live births

Source: Directorate of Economics and Statistics, Rajasthan (2007)



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Cultural infrastructure• Cricket, polo and aero-sports such as

parasailing, paragliding are the popular sports in Rajasthan.

• The state has various district associations operating under the purview of the Rajasthan Cricket Association.

• Most important stadiums of the state include Sawai Mansingh Stadium, Chaugan Stadium, PratapStadium, Mansarovar Stadium (Jaipur).

• Golf is another popular sport in the state; water sports are an upcoming area.

• In addition, Rajasthan offers various adventure activities including camel safari, horse safari, jeep safari and elephant safaris.

• Key cultural centres in Rajasthan include JawaharKala Kendra and Radha Krishan Cultural and Convention Center in Jaipur, Bharatiya Lok Kala Mandal and Meera Kala Mandir in Udaipur, and Desert Cultural Centre in Jaisalmer.

Jawahar Kala Kendra, Jaipur

• House of museums: Displays ethnic art pieces emitting Rajasthani folk culture.

• House of theaters: Plays with high literary value are staged here.

• Library: Has books and magazines, along with a record of the forthcoming and past cultural events and exhibitions.

• Arts gallery: Displays arts and crafts created by well known artists.

• Studio: Exhibits paintings and sculptures by well known artists.

• Hostel: Residential facilities



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Infrastructure Primary industry Details

Theme parks Multi-industry

RIICO is developing theme parks with a special set of infrastructure and facilities for establishing industries in line with the designated theme. It has established a satellite earth station in the Sitapura IT park of Jaipur along with the Software Technology Parks of India (STPI).

Export promotion industrial parks (EPIP)

Multi-product

EPIPs have been set up at Sitapura (Jaipur), Neemrana (Alwar) and Boranada(Jodhpur). The EPIP in Jaipur is one among the largest export parks in Northern India. The units operating here have export orders accounting for, at least, 33 per cent of their total turnover.

SEZs Multi-product

The state is developing SEZs for industrial growth; as of March 2009, formal approval had been given to eight SEZs, in-principle approval had been given to 11 SEZs and there were seven notified SEZs. A multi-product SEZ is being developed by Mahindra World City (Jaipur) Limited, a joint venture of Mahindra GescoLimited and RIICO Limited. This public-private partnership initiative envisages an investment of about US$ 241.1 million.

SEZ for IT IT

A state-of-the-art special economic zone has been developed by Mahindra and Mahindra with an investment of US$ 244 million. It has attracted many domestic investors such as Infosys and Wipro as well as substantial investment from foreign investors.

ICD Logistics For ease of movement of cargo, ICDS have been set up at Jaipur, Jodhpur, Bhiwadiand Bhilwara.

Industrial infrastructure



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Company name or developer Location Primary industry

Jaipur SEZ Jaipur Gems and jewellery

Jodhpur SEZ Jodhpur Handicrafts

Mahindra World city (Jaipur) Limited Kalwara village, Jaipur IT/ITeS

SEZs in Rajasthan … (1/2)

Source: sezindia.nic.in

Operational SEZs


Mahindra Gesco Jaipur IT/ITeS

Somani Worsted Limited Khushkera Industrial Area, Bhiwadi Electronics hardware and software/ ITeS

Mansarovar IndustrialDevelopment Corporation Jodhpur Handicraft

Vaitka Jaipur SEZ Jaipur-Ajmer expressway IT/ ITeS

RNB Infrastrucure Private Limited Bikaner Textile (in- principle approval granted for woollen sector)

Mahindra Worldcity (Jaipur) Limited Jaipur Handicrafts and light engineering

Notified SEZs



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Source: sezindia.nic.in

Company name Location Primary industry

GENPACT Jaipur IT/ ITeS

SEZ with formal approvals


Rockman Projects Limited National Highway (NH-8), Jaipur Gems and jewellery

Omaxe Limited Alwar district Multi-product

Ansal Properties and Infrastructure Limited Jaipur district, village Sangtera, Kotputli tehsil Multi-product

Parsvnath Developers Limited Jaipur-Ajmer road, Jaipur Multi-product

Adani Exports Limited Alwar district Multi-services

Suncity Rajasthan SEZ Developer Pvt. Ltd. Neemrana, district Alwar Multi-product

SRM Infrastructure Private Limited Alwar Multi-services

Society for Innovative Education and Development ('EMPI' Vittal Centre INNOPOLIS)

Neemrana, district Alwar Building materials

DLF Limited Near Bhiwadi, Alwar district Gems and jewellery

P S Jaipur SEZ Developers Pvt. Ltd. Bhanpur Kala, Delhi-Jaipur road (on NH-8) Multi-product

Arihant Infratech (India) Pvt. Ltd. Udaipur district Multi-product

SEZ with valid in-principal approvals

SEZs in Rajasthan … (2/2)



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Operational and notified SEZs

SEZs and industrial clusters … (1/2)

Jaipur SEZ (Gems and jewellery)

Mahindra World city Limited (IT/ITeS)

Mahindra Gesco (Jaipur)

Vaitka Jaipur SEZ

Mahindra World city Limited (Handicrafts and light engineering)

Jodhpur SEZ(Handicrafts)

Somani Worsted Limited

Mansarovar IndustrialDevelopment Corporation

RNB Infrastructure

IndexOperational SEZs

Notified SEZs



39

Index

Cement grade limestone

Automotive

Tourism

IT and ITeS

Handicraft, gems and jewellery

Chemicals

Industrial clusters in Rajasthan



SEZs and industrial clusters … (2/2)

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Infrastructure type Investments (US$ million)

Power* 5,870.0

Roads 532.1

Oil and Gas 1,703.9

Railway 219.4

Airport 52.2

Total 8,337.8

Infrastructure investments

*Generation and distributionSource: CMIE

• Infrastructure investments in Rajasthan were over US$ 8.3 billion, as of December 2008.

• Over 70 per cent of investments in infrastructure were in the area of power generation and distribution.

• About 20 per cent of the investments were in the oil and gas sector, while another 6 per cent were in the road sector.



41

Contents

Advantage Rajasthan







42

Sector-specific policies … (1/11)

The Rajasthan Investment Promotion Scheme, 2003 (RajInvest-2003)

Aim: To promote investment in tourism, education, medical and healthcare, IT, other service sectors and manufacturing. The scheme is valid until 2011.

Key initiatives:

• Subsidises and incentives for new units or those undergoing diversification/expansion, to attract investments.

• Simplification of investment planning mechanism for investors by using the single-window mechanism.

• Special emphasis to encourage investment in industries such as biotechnology, tourism and education.

Key subsidies:

• Five per cent interest subsidy and 25 per cent wage or employment subsidy available to investors for seven years from the date of first repayment of interest or first payment of wages; the total of interest and wage/employment subsidies have a maximum limit of 50 per cent of value added tax (VAT) and central sales tax (CST); the maximum limit is extendible to 75 per cent for biotechnology units.

• 100 per cent exemption from luxury tax for seven years.

• 50 per cent exemption from entertainment tax, electricity duty and mandi tax for seven years.

• 50 per cent exemption from stamp duty and land conversion charges.


STATE POLICIES AND INCENTIVES

43


Policy for Promoting Generation of Electricity through Non-Conventional Energy Sources, 2004

Aim: To encourage investment in non-conventional sources for generation of electricity.

Key incentives:

• 50 per cent exemption from electricity duty for seven years.

• 50 per cent exemption from stamp duty.

• 50 per cent exemption from conversion charge.

• Allotment of land on 10 per cent of district-level committee (DLC) rate.

• Exemption from payment of entry tax.

• Exemption from merit order dispatch regulations.

• Wheeling and banking facilities for power generated.

• Interest subsidy and wage/employment subsidy on new investments.



44

Biotech Scheme, 2004

Aim: To facilitate the growth of biotech industries and development of clean bio-technologies.

Key thrust areas:

• Positioning the state as an attractive destination for the development and growth of biotechnology industries.

• Creating and continuously upgrading biotechnology infrastructure in the state through government and/or public private partnerships.

• Creating and developing human resources in biotechnology.

Key incentives:

• Land allotment for setting up of various bio-tech and bio-informatics industries, including projects covered under modern biotechnology, is made at the rate of development charges prevailing in the area.

• The land rebate, by way of reimbursement, is allowed after the required minimum fixed investment has actually been made on the allotted plot within the period stipulated for investment in the package.




45

Tourism Policy, 2001

Aim: Optimum utilisation of rich tourism resources of the state to generate employment, especially, in the rural areas.

Key aims and initiatives:

• Optimum utilisation of rich tourist resources of the state in order to attract maximum number of domestic and international tourists.

• To facilitate the growth of tourism in the state and to further involve the private sector in the development of tourism in Rajasthan.

• To make tourism a people's industry in the state.

• Preservation of rich natural habitat and bio-diversity, historical, and architectural and cultural heritage of Rajasthan; special emphasis on conservation of historical monuments in Rajasthan.

• Increase employment opportunities, especially, for unemployed rural youth.




46

Tourism Unit Policy, 2007

Aim: This policy enhances the scope of the Hotel Policy, 2006, by including all other categories of hotels (heritage hotels and other tourism units, e.g., health spas, golf academy and golf course) under its purview.

Key incentives:

• A land bank with information of all land available will be made available online; minimum and maximum areas have been prescribedfor land to be auctioned from the land bank.

• Minimum special reserve price (MSP) for five-star hotels and other tourism units fixed at less than 50 per cent of the commercial reserve price. For the budget, three-star and four-star units, MSP ranges from 10 per cent to 45 per cent.

• Under Rule-7 of the ‘Rajasthan Land Revenue (conversion of agricultural land for non-agricultural purpose in rural areas) Rules 2007’, a provision has been added for exempting payment of conversion charges for investors/developers of hotels or any othertourism unit on the land.

• A provision has been added to the ‘Rajasthan Municipal Corporation (land utilization conversion) Rules 2000’ according to which heritage property owners would not have to pay 40 per cent of residential reserve price for conversion of the property into aheritage hotel provided that the property has a minimum of 10 rooms.

• The floor area ratio (FAR) of existing hotels increased from 1.7 to two, to allow construction of an additional floor.

• All concessions available in the Rajasthan Investment Policy Scheme 2003, shall also be available to all tourism units.




47

IT and ITeS Policy, 2007

Aim: To create and expand economic opportunities in the knowledge economy, attracting investments to the state and enhancing employment opportunities.

Key initiatives:

• Strengthening information and communication technology (ICT) infrastructure for e-governance.

• Developing e-governance framework for charting strategic growth plans and formulating appropriate policy measures.

• Promoting public private partnerships in e-governance.

• Implementing structured business process re-engineering (BPR) in all the key departments.

• Formulating proper framework and guidelines for maintenance, accreditation and updating of various state department websites.

• Promoting economic development of the state through investments in IT and ITeS sector.

• Making IT available for the masses by promoting computer education, creating talent pool for the ICT industry, generating employment, taking it to rural areas and providing adequate incentives.

• The local IT industry shall be encouraged to develop and offer the necessary IT products and services relevant to the tourism industry.

• Electronic tourism kiosks to be set up at important locations for the benefit of tourists coming to the state.




48

IT and ITES Policy 2007 (continued)

Key incentives:

• Land and office infrastructure incentives:

• Facilitation for the creation of infrastructure such as high-quality office space serviced with all basic amenities of high-speed telecommunication links, uninterrupted power supply and central air-conditioning.

• Assistance in procuring land and change in land use as in master plan, wherever feasible, to the private IT park and IT unit developers.

• 50 per cent exemption from stamp duty to eligible IT/ITeS companies as per provisions of Rajasthan Investment Promotion Scheme (RIPS 2003) or as amended from time-to-time.

• Various exemptions related to labour laws including:

• Permission to work 24 hours a day, seven days a week.

• Closing an establishment and granting of a weekly holiday as per company requirements, provided that every individual has at least one day off every week and a compulsory day off in lieu of working on bank holidays.

• Flexi-time operations since working hours could be decided as per company needs and three shift operation is allowed.

• Permission to engage female employees between 8 p.m. and 6 a.m., provided special arrangement is made for ensuring their security.

• 50 per cent exemption from the payment of electricity duty for seven years, as per provisions under RIPS 2003 or as amended from time-to-time, for new IT units.

• Electricity tariff for IT and ITeS units as per low-tension industry category.




49

IT and ITES Policy 2007 (continued)

Key incentives:• All the fiscal incentives as per the Rajasthan Investment Promotion Policy, 2003 or as amended from time to time; VAT on all

products rationalised to be at par with the minimum floor rate of 4 per cent.

• Special package of incentives to the micro, small and medium enterprises (MSMEs) to promote their growth. Some of the key incentives are:

• Reservation of land for preferred allotment to MSMEs in the IT parks.

• Support to NASSCOM, Software Technology Parks of India (STPI) or any such organisation in the creation of a library for making available information on trends in technology, market intelligence, research reports and analysis, etc., by contributing US$ 20,000 per annum, for developing the SME sector.

• Subsidy up to US$ 50,000, at the rate of US$ 217 per employee, to the first five IT/ITeS companies investing in the state and directly employing more than 50 employees in IT or 100 employees in ITeS sector; such employment should exist for a period of at least two years for persons domiciled in Rajasthan.

• Incentives linked to mega projects: Projects creating direct employment of more than 500 people in the case of IT industry or1,000 people in ITeS industries to be defined as mega projects; such projects are entitled to a special package of incentive of US$ 217 per employee.




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The Rajasthan Micro, Small and Medium Enterprises Development Assistance Scheme, 2008

Aim: To make the state’s micro, small and medium enterprises (MSMEs) globally competitive. All MSMEs of the state having acknowledgement of entrepreneurs Memorandum-I and II are eligible for the benefit under this scheme, subject to fulfillment of certain conditions.

Key thrust: To develop and support MSMEs in increasing capacity and quality for supplying to domestic and export markets.Key incentives:

• RIICO to provide land at 50 per cent of the prevailing district level committee (DLC) rates.

• The state government to provide 50 per cent of the capital cost for establishment of common effluent-treatment plants (CETP).

• Reimbursement of expenses incurred towards filing, sharing patent, ISO certification.

• Establishment of national laboratories by providing land at 50 per cent of DLC rates and part of capital cost.

• To get at least 10,000 artisans credit cards issued per year from different banks in the next five years.

• RIICO to develop separate areas for MSME with 24-hour uninterrupted power supply and enabling infrastructure.

• Encouragement of private sector investment for setting up industrial parks by providing a level playing field vis-à-vis RIICO.

• Exemption from entry tax for inputs (raw material, processing and packaging material, except fuel).

• Exemption of 75 per cent from electricity duty to the units located in rural areas.

• Khadi and Village Industries Board (KVIB)/ Khadi and Village Industries Commission (KVIC) registered units to continue with pre-VAT tax structure.




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Policy to Promote Private Investment in Healthcare Facilities 2006

Aim: To promote private investment in healthcare facilities and Rajasthan as a destination for medical tourism; policy to remain in force until December 2010.

Key initiatives:

• To promote private sector investment in medical and healthcare institutions, medical and dental colleges and support units such as diagnostic centres, blood banks and paramedical training institutes.

• To develop complementary and alternative medicine centres.

• To develop super specialty healthcare institutions.

• To ensure delivery of quality healthcare at reasonable costs.

• To promote development of centres of excellence for medical care.

• To develop standards for infrastructure and operations.

• To create a regulatory body with supportive role.

Key incentives:

• Rebate related to land allotment (ranging up to 75 per cent); it is linked to size of investment, geographical location and hospital in areas of tourist importance.

• 50 per cent exemption from the payment of electricity duty for seven years

• 50 per cent exemption from the payment of stamp duty and land conversion rate.




52

Ayush Healthcare facilities, 2008

Aim: To promote private investment in healthcare facilities offered by the Indian system of medicine; policy to remain in force until December 2013.

Key initiatives:

• To promote private sector investment in education, research institutes and hospitals in the area of traditional Indian medicine.

• To develop super specialty facilities for the Indian system of medicine to ensure delivery of quality health care at reasonable costs.

• To promote public-private participation in the health sector.

• To develop standards for infrastructure and operation, and create a regulatory body with supportive role.

Key incentives:

• Exemption from duty on captive power generation as per RIPS-2003 for a period of seven years; 50 per cent exemption from stamp duty and land conversion charges.

• Land at concession rates to new institutes, investing a minimum of US$ 1.0 million for colleges, US$ 500,000 for hospital andspecialty centre, US$ 1.0 million for pharmacy and US$ 0.1 million for 50-bed hospitals.




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Company logos cited in this section are registered trademarks of the respective companies

Contents

Advantage Rajasthan







54

• Rajasthan has huge reserves of cement-grade and steel-melting-shop (SMS) grade limestone. SMS grade limestone of the Jaisalmer district is supplied to various steel plants in the country.

• Currently, 14 major cement plants and two medium cement plants are in operation with a total installed capacity of about 20.3 million tonnes per annum (MTPA).

Cement

Key players

• ACC

• Ambuja Cement Limited

• Birla Corporation Limited

• Mangalam Cement Limited

• Grasim Industries Limited

• Shree Cement Limited

• Binani Cement Limited

• Laxmi Engineers Limited

• JK Lakshmi Cement Limited


BUSINESS OPPORTUNITIES

55

Cement – company profiles … (1/2)ACC • ACC is the largest cement producer in India; its plant at Bundi, Rajasthan, has a production

capacity of 1.5 MTPA.

• The company is also the largest manufacturer of ready-mix concrete in India.

Ambuja Cement Limited

• Ambuja Cement Limited has cement plants in Rajasthan, Maharashtra, Gujarat, Himachal Pradesh, Punjab, Chhattisgarh and West Bengal.

• The total cement capacity of the company is 18.5 MTPA.

• The production facility in Rajasthan has a capacity of 2 MTPA.

Birla CorporationLimited

• Birla Corporation Limited is the flagship company of the M.P. Birla group.

• The company owns seven cement plants, located in West Bengal, Madhya Pradesh, Rajasthan and Uttar Pradesh, with a total annual manufacturing capacity of 5.8 MTPA.

• The company is planning a 1.2 million tonne expansion at its Chanderia plant in Rajasthan.

Mangalam Cement Limited• Mangalam Cement Limited is principally engaged in the development, manufacture and

distribution of portland cement and clinker in India.

• The company has limestone deposits at Morak, ideal for the manufacturing portland cement.

• It has a plant in Kota.

Shree Cement • Shree Cement manufactures its products under the Bangur Cement brand name.

• The company’s manufacturing facilities are located at Beawar, 185 km from Jaipur.

• The company’s grinding unit is located at Khush Khera (Alwar).

• Besides, the company has a a wide network of 28 sales offices, 1,193 dealers and 4,000 retailers.



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Grasim Industries Limited

• Grasim Industries Limited is a flagship company of the Aditya Birla Group.

• Grasim, along with its subsidiary UltraTech Cement had a capacity of 45.7 MTPA as of June 2009; it is a leading cement player in India; has 1.5 MTPA cement unit at Shambhupura in Rajasthan.

• Grasim is setting up a 4.5 MTPA greenfield plant at Kotputli and another 4.4 MTPA plant at Shambhupura, both in Rajasthan.

• Grasim Industries Limited and Samruddhi Cement Limited, a wholly-owned subsidiary of Grasim, approved a proposal in October 2009 to de-merge the cement business of Grasim into Samruddhi.

Binani Cement Limited

• Binani Cement Limited (BCL) is a subsidiary of Binani Industries Limited (BIL).

• The company’s manufacturing plant is located at Binanigarm, Sirohi, Rajasthan.

• The Binanigram facility has an upgraded capacity of 6 MTPA.

Laxmi Engineers Limited

• Laxmi Engineers is a cement manufacturer with headquarters in Rajasthan; the company began operations in 1991.

• The company's mini-cement plant has the production capacity of 50 tonnes per day.

• The group companies manufacture cut stones and marbles, polishing machines and tiles for construction.

JK Lakshmi Cement • JK Lakshmi Cement has a state-of-the-art plant at Jaykaypuram, Sirohi, Rajasthan.

• With the capacity expansion and further commissioning of a split-location grinding unit in Gujarat, the combined capacity of the company is 4.75 MTPA.

• JK Lakshmi Cement is the first cement producer of Northern India to be awarded an ISO-9002 and be accredited by National Accreditation Board for Testing and Calibrating Laboratories (NABL), Department of Science and Technology, Government of India, for its lab quality management systems.

Cement – company profiles … (2/2)



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Mining and mineral processing industry … (1/2)

• Rajasthan is one among the largest mineral producing states in India. Around 79 varieties of minerals are available in the state and 58 minerals are produced on a commercial scale. Important minerals are silver, phosphate fluoride, rock phosphate, copper, zinc, gypsum, clay, granite, marble, sandstone, dolomite, calcite, emeralds and garnets.

• The state has about 210 million tonnes of identified reserves of lead-zinc ore with 1.45 per cent lead and zinc, and 639 million tonnes of copper ore reserves containing 0.80 to 1.2 per cent copper.

Prospective locations for metals

Copper Udaipur, Sirohi, Raisamand, Alwar, Jhunjhunu

Lead, zinc, copper Banswara

Gold Banswara

Gold, silver Banswara

Copper, gold, platinum Ajmer



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• Base metals and noble metals: Rajasthan has immense potential for mining base metals and noble metals in a belt that extends over an area of about 58,000 sq. km; it covers Alwar in the North to Banswara and Dungarpur in the South and passing through the districts of Jhunjhunu, Jaipur, Ajmer, Bhilwara, Rajsamand, Sirohi and Udaipur.

• Dimensional stones: The state has substantial reserves of different varieties of dimensional stones such as marble, granite, sandstone and slate with tremendous potential for exports forward linkages with the construction industry.

• Lignite: Rajasthan has more than 4,000 million tonnes of lignite reserves in the districts of Barmer, Bikaner and Nagaur. Lignite is being produced in Barmer and Matasukharea of Nagaur. In recent years, some lignite blocks in three districts have been allotted for setting up thermal power plants.

• Ceramics: The availability of clay and feldspar in Rajasthan makes it an excellent location for ceramic-related industry (e.g., white-ware, floorings and bone-china).

Key players in ceramic industry

• Kajaria• Liberty• Jaipur Ceramics

Mining and mineral processing industry … (2/2)

Key players in mining industry

• Hindustan Zinc Limited

• Hindustan Copper Limited

Key players in marble industry

• Elegant marbles• Maadhav Granite and Realtyd



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Hindustan Zinc Limited (HZL)

• HZL is a part of the Vedanta Resources Group and has four mines in Rajasthan.

• Rampura Agucha mine is the world's largest zinc mine with a production capacity of 5 MTPA. In 2008-09, Rampura Agucha produced 591,743 tonnes of contained zinc and 56,946 tonnes of contained lead.

• Sindesar Kund mine has a reserves base of over 56 million tonnes; its capacity is 0.3 MTPA and achieved a production level of 11,870 tonnes of contained zinc and 5,350 tonnes of contained lead in 2008-09.

• Rajpura Dariba mine has capacity of 0.90 MTPA and achieved a production level of 19,700 tonnes of contained zinc and 4,930 tonnes of contained lead in 2008-09.

Hindustan Copper Limited (HCL)

• HCL is a public sector undertaking under the administrative control of the Ministry of Mines.

• It is a vertically-integrated copper producing company with facilities of mining, beneficiation, smelting, refining and casting of refined copper metal into downstream-saleable products.

• HCL has four operating units of mines and plants, one of which is the Khetri Copper Complex (KCC) at Khetrinagar in Rajasthan.

Rajasthan State Mines and Minerals Limited

• Rajasthan State Mines & Minerals Limited (RSMML) is a public sector enterprise of the Government of Rajasthan, primarily, engaged in mining and marketing of industrial minerals.

• The company has various strategic business units (SBUs) in Rajasthan; the rock phosphate SBU is located at Udaipur, gypsum SBU at Bikaner, limestone SBU at Jodhpur and lignite SBU at Jaipur.

• Going forward, RSMML is targeting cost effective technological innovations in mining and diversifying into mineral-based downstream projects.

Mining – company profiles



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Ceramic – company profiles

Kajaria• Kajaria Ceramics is the largest manufacturer of ceramic tiles in India. The company has two

manufacturing plants, with a total annual capacity of 21 million sq m. • The company exports tiles to more than 20 countries around the globe.

• Kajaria Ceramics has a manufacturing plant at Gailpur, Rajasthan, with an annual capacity of 14.1 million sq m.

• Kajaria has several certifications, including ISO 9001 (for quality management), ISO 14001 (for environment management), OHSAS 18001 (for safety and health management) and SA-8000 (for commitment to society).

Liberty • Liberty has a sanitary-ware unit, located at Neemrana in Rajasthan.

• The company has an annual production capacity of 500,000 pieces per annum.

Jaipur Ceramics Private Limited

• Jaipur Ceramics has a ceramics plant on the outskirts of Jaipur, with a bone china capacity of 1,500 tonnes per annum.

• The company has a workforce of about 700 people, including highly-skilled and semi-skilled employees.

• It also has an in-house facility for making kiln furniture, and can produce tiles and pillars for captive use; the capacity is about 18 tonnes per month.



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Elegant Marbles • Elegant Marbles markets and processes marble and granite and offers over 84 colours in the Indian market.

• The company’s total installed capacity for processing marble and granite is 2.5 million sq ft.

• They also import marble from Italy, France, Norway, Spain, Greece and Nepal.

Maadhav Granite and Realty Limited

• Maadhav Granite exports its products to over 20 countries including the US, Germany, Holland, Singapore and Australia.

• It has an installed capacity of 751,338 sq m. per annum for processing granite tiles.

• The company has acquired two wind-turbine generators (each of 1.25 MW) and has diversified into power generation.

Marble – company profiles



62

Automotive

• The Alwar and Jaipur districts are close to major auto-production hubs of the country such as Noida (Uttar Pradesh), Gurgaon and Dharuhera(Haryana), offering excellent advantage for setting up of auto and auto-ancillary units.

• Nearly 100 units are currently functional in the Bhiwadi region of Alwar.

• A special auto and engineering zone has also been developed in the Pathredi Industrial Area and another special zone is being planned in Bhiwadi.

Key players

• Amtek India

• Ashok Leyland

• TAFE

• Hi-Tech Gears

• National Engineering Industries (NBC)

• Autolite India

• Honda Siel

• Caparo Fasteners

• Federal Mogul Goetze

• Ocap Chassis

• MICO

• Continental Engines



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Automotive – company profiles … (1/4)

Amtek Auto Limited • Amtek Auto is a flagship company the Amtek Group; it is a leading Indian supplier of auto-components with operations in forgings, machining and sub-assemblies.

• The company’s plants are located at Alwar and Bhiwadi.

• It supplies over 300 varieties of components and assemblies to leading domestic and global vehicle manufacturers.

• The company’s machining capacity is 40 million parts and its forging capacity is 225,000 tonnes per annum.

Ashok Leyland Limited (ALL)

• ALL is a flagship company of the Hinduja Group; it is a leading manufacturer of commercial vehicles in India.

• The company’s manufacturing facilities are located at Alwar (Rajasthan), besides Ennore, Ambattur and Hosur in Tamil Nadu and Bhandara in Maharashtra.

• In July 2007, the company entered into a joint venture with the Alteams Group, Finland, to manufacture high pressure die-castings and aluminium products, predominantly, for the automotive and telecommunications sectors.

TAFE• TAFE is in the tractor manufacturing business; its subsidiary, TAFE Motors and Tractors Limited, has an

engine plant at Alwar and transmissions plant at Parwanoo.

• The diesel-engine plant at Alwar, Rajasthan, produces a range of air-cooled and water-cooled diesel engines of up to 80 HP.



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Hi-Tech Gears Limited• Hi-Tech Gears was incorporated as a public limited company in 1986; the company has a plant in

Bhiwadi; it has ISO 9002 and QS 2000 certifications.

• The company produces precision forging, transmission gears, and shaft and timing gears.

• Getrag Hi-Tech Gears India Private Limited, a joint venture of GETRAG Corporation and Hi-Tech Gears Limited is engaged in production of engine timing gears; the unit employs around 70 people.

National Engineering

Industries (NBC)

• National Engineering Industries Limited, Jaipur, was founded in the year 1946 for manufacture of bearing under the name of National Bearing Company Limited (NBC).

• The company has manufacturing facilities at Jaipur and Gunsi (Newai).

• It produces ball bearings, steel balls, tapered roller bearings, cylindrical roller bearings and axle boxes for railway rolling stock.

• The company manufactures nearly 3.8 million bearings per month in over 500 different sizes ranging from 6 mm bore to 1,300 mm outer diameter. The company has a facilities to manufacture bearings up to 2,000 mm outer diameter.

Autolite India Limited• Autolite was established in 1970, with an objective to design, manufacture and market automotive

lighting products, globally; the current product range includes head lamps, auxiliary lamps, work lamps, horns, halogen bulbs and incandescent bulbs.

• The company’s manufacturing plant is located at Jaipur.

• It serves as an original equipment manufacturer (OEM) for the domestic, European and Japanese vehicle manufacturers in India including Eicher, Komatsu and FIAT.

• It has ISO 9001: 2000 accreditation.




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Honda Siel Cars

India Limited (HSCI)

• HSCI was incorporated in December 1995 as a joint venture between Honda Motor Co.., Japan and SielLimited, a Siddharth Shriram group company; the total manufacturing capacity of the company is 100,000 cars.

• In Rajasthan, the company has a plant located at Tapakura. As of 2009, the total investment made by the company in Rajasthan plant was US$ 130 million; further investment of US$ 86 million is planned, which will translate in to capacity addition of 60,000 units of cars.

Caparo Fasteners• Caparo Fasteners started its Indian operation in 2005 from Chopanki (Rajasthan); it is one of India’s

leading manufacturers of high tensile fasteners.

• Caparo Fasteners India supplies fasteners to leading OEMs including Ashok Leyland, Asia Motor Works, Eicher Motors, Ford, General Motors, HMSI, Tata Motors.

• The company has a capacity to produce 26,000 MT of fasteners per annum.

• It is backed by complete technical support from the group company, Caparo Atlas Fastenings, UK, a leading manufacturer of fasteners, catering to the European automobile industry, for the last 100 years.

Federal Mogul

Goetze Limited

• Federal-Mogul Goetze (India) Limited was established in 1954 as a joint venture with Goetze-Werke of Germany.

• It is the largest manufacturer of pistons and piston rings in India.

• The company has production facilities at Bhiwadi which is accredited with TS 16949, ISO14001 and OHSAS 18001.

Ocap Chassis• OCAP, founded in 1975, has operations in Italy in Valperga, Feletto, Busano and Oglianico.

• The company started its operations as a spare manufacturer for steering and suspension parts for the aftermarket. Presently, the company is a supplier to automotive, truck and agricultural manufacturers such as Audi, Bentley, Lamborghini, Maserati and Renault.

• OCAP Chassis India is located at RIICO industrial area, Bhiwadi, (Alwar).




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Motor Industries Co • Motor Industries Co. (MICO) is a manufacturer of pumps, which are used in commercial vehicles to follow gas emission requirements.

• The company has a manufacturing plant at Jaipur with a capacity of 10 million units per annum for pumps that comply with Euro-II and Euro-III norms.

• MICO has planned to double the capacity of its Jaipur plant. Post-expansion, these distribution pumps will be made Euro-IV compliant.

Continental Engines • Continental Engines is a part of Bakshi Group, a three decades old Indian multinational company with interests in auto components, engines and business process outsourcing (BPO) sectors.

• It is engaged in the manufacture of automotive components for domestic and global auto majors.

• The company’s product range includes fully-assembled cylinder heads (multi-cylinder heads and single-cylinder heads), crank cases, compressor mounting brackets, inlet manifolds, clutch housings, transmission cases, flywheel housings, etc.




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Textiles

Key players

• Rajasthan Spinning & Weaving Mills

• JK Synthetics

• Shree Rajasthan Syntex Limited

• Banswara Syntex Limited (BSL Group)

• Shriram Rayons

• Bhilwara Spinners Limited

• Ginni International Limited

• Modern Threads

• Rajasthan has a leading position in the production of polyester viscose yarn and synthetic suiting material as well as processing of low-cost, low-weight fabric (at Pali, Balotra, Sanganer and Bagru).

• Jaipur is also a well-known centre for manufacturing garments, primarily for exports.

• Bhilwara has emerged as India's largest manufacturer of suiting fabrics and yarn.

• Availability of raw material and trained labour has promoted the growth of textile industry and drove many textile units to locate in the state.

• With a network of backward and forward linkage, Rajasthan’s textile industry offers significant competitive advantage.



Type of textiles in Rajasthan

• Block printing-Sanganer, Jaipur, Bagru

• Bandhani-Jodhpur, Pali, Jaipur, Udaipur

and Nathdwara

• Zari/ Zardosi

• Quilting

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Textiles – company profiles … (1/2)

RSWM Limited • RSWM produces yarn, fabric, garments and denim; it is one of the largest producers and exporters of polyester-viscose-blended yarn in the country.

• The company operates around 3,60,000 spindles and produces 100,000 MT of yarn per year.

• It has plants in Banswara, Mordi, Kharagram and Rishabdev.

JK Synthetics • JK Synthetics produces a wide range of synthetic fibres including nylon yarn and high-tenacity yarn for industrial application, e.g., fishing industry, tyre cord, polyester-filament yarn, polyester staple fibre and tows and acrylic staple fibre.

• The plant is located at Kota in Rajasthan.

Banwara Syntex Limited

• Banswara Syntex was incorporated in the year 1976; the company manufactures fabric, readymade garments, made-ups and worsted suiting.

• The company’s manufacturing facility is located in Banswara; it has a spinning capacity of 133,588 ring spindles including 14,400 spindles for worsted-yarn spinning and 576 air-jet spindles. It also has 194 shuttles-less looms, 12 air-jet-jacquard looms and six stenters, with a processing capacity of 4 million meters per month.

• The company also has a readymade garment production plant at Daman and Surat (Gujarat), with installed capacity of 0.23 million pieces of trousers and 10,000 pieces of jackets per month.

Shree Rajasthan Syntex Limited

• Shree Rajasthan Syntex is a synthetic-yarn manufacturer manufacturing and distributing acrylic, polyester, viscose yarns and polypropylene multi-filament yarn.

• The plant is located at Updaipur in Rajasthan.



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Textiles – company profiles … (2/2)

Shriram Rayons • Shriram Rayons, a part of DCM Shriram Industrial Group, is among the country's major manufacturers of high-grade rayon tyre cord; it has nylon and rayon conversion facilities catering to the needs of the domestic and international markets.

• The manufacturing plant is located at Kota; the technology partners of the company are Beunit Fibres Inc, USA and Chemtex Inc, USA.

Bhilwara Spinners Limited

• Bhilwara Spinners Limited, a part of the LNJ Bhilwara Group, is a manufacturer of cotton-synthetic blended yarns of various counts and blends; the 18,496 spindles manufacturing facility is located at Bhilwara.

• The company also manufactures various value-added products such as polyester/acrylic, mod-acrylic flame-retardant yarn, sewing thread, slub yarn, viscose-carpet yarn, linen yarn, and products suitable for other uses including upholstery, tapestry and industrial fabrics.

Ginni InternationalLimited

• Ginni International has a unit at the RIICO Industrial Area, Neemrana, Alwar.

• Established in 1996, it is a 100 percent export oriented unit, engaged in weaving, spinning and knitting activities.

• The installed capacity of the plant is around 32,256 spindles; it also has capacity to produce world-class quality woven fabrics with 54 picanol air-jet looms; the company has ISO certification since 1997.

• It employs around 700 people.

Modern Threads • Modern Threads is a unit of Modern Group; it is one of the largest synthetic yarn spinning plants in India, which a capacity of about 50,000 spindles.

• It is engaged in manufacturing and marketing of a wide range of products including grey, dyed and fancy yarns made of polyester viscose.

• In Rajasthan, they are located in village Raila in the Bhilwara district.



70

• Rajasthan has a vast pool of trained professionals. Moreover, low cost of operations in well-developed cities of the state makes them attractive locations for IT and ITeS units.

• IT parks with special infrastructure have been set up at Jaipur, Jodhpur, Kota and Alwar.

IT sector

Key players

• Genpact

• Infosys

• Wipro

• Tech Mahindra

• Nagaro



71

IT and ITeS – company profiles … (1/2)

Infosys • Infosys was set up in 1981; it is engaged in IT consulting, modular global sourcing, process re-engineering, and BPO services; has operations in Australia, China and US. It also has marketing and technological alliances with FileNet, IBM, Intel, Microsoft, Oracle, etc. The company recorded a turnover of US$ 4.7 billion in 2008-09.

• Infosys BPO, the BPO-services division of Infosys, has opened BPO campuses at the Mahindra World City, Jaipur, Rajasthan.

• The company has also launched various industry-specific programmes in Rajasthan where it collaborates with universities in the state to improve the BPO-specific skill sets.

Tech Mahindra • Tech Mahindra is a global systems integrator and business transformation consulting firm, focused on the communications industry.

• Tech Mahindra provides a wide variety of services ranging from IT strategy and consulting to system integration, design, application development, implementation, maintenance and product engineering. Tech Mahindra has accreditations such as ISO 9001:2000 certification, SEI-CMM level 5 assessments and is also CMMI level 5 certified for software development processes.

• The company is setting up two software development centres in Jaipur, Rajasthan.

Genpact • Formerly known as GE Capital International Services, Genpact was set up in India in 1997.

• The company provides a wide range of business process, technology and knowledge services in finance and accounting, collections and customer relations, insurance, procurement and supply chain, analytics, software, IT-infrastructure

• It recorded a turnover of US$ 1.04 billion in 2008.

• The company employs about 20,000 professionals in total and over 3,000 people in the Jaipur facility.



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72

WIPRO • WIPRO was established in 1945; it is engaged in IT services, product engineering, technology infrastructure services, BPO and other consulting solutions. It also provides services such as application development, deployment and maintenance, business intelligence and customer relationship management. Based in Bengaluru, the company has 54 development centres and 30 offices spread across India, North America, Middle East and Europe.

• It recorded a turnover of US$ 5.6 billion in 2008-09.

• Wipro Technologies has set up a campus at the Mahindra World City in Jaipur. The company is developing its campus in two phases; the first phase – spread across 25 acres, with a seating capacity of 1,000 employees – is operational.

Nagarro • Nagarro provides outsourced software development services to companies ranging from early stage start-ups to the global 50 market leaders, helping them achieve their strategic goals.

• The company has signed an MoU with the Mahindra World City for developing a 5-acre site in the Mahindra World City SEZ.

IT and ITeS – company profiles … (2/2)



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73

Chemicals

• The key chemicals produced in Rajasthan include fertilisers, caustic soda and pesticides; the principal industrial complexes for chemicals are at Jaipur, Kota, Udaipur and Bhilwara.

Chambal Fertilisers and

Chemicals Limited

(CFCL)

• CFCL manufactures and distributes urea, agri-inputs, fertilisers, plant protection chemicals, seeds and bio-fertilisers.

• The company has two nitrogenous fertiliser plants near Kota in Rajasthan; with a capacity of over 1.7 MTPA of urea, it is among the largest fertiliser complexes in the private sector in India.

P I Industries Limited • P I Industries mainly produces organo-phosphorous insecticides.

• The company has its plant at Udaipur in Rajasthan, producing liquid insecticides, minerals and allied products, polymers and solid insecticides.

DCM Shriram Group • DCM Shriram Industries is a diversified group with operations in sugar, alcohol, organic and inorganic chemicals, drug intermediates, rayon tyre cord, shipping containers and processed cotton yarn.



74

Steel

• Rajasthan’s steel industry comprises re-rolling and stainless steel units located, mainly, in Jodhpur, Alwar and Jaipur. Most of the re-rolling units belong to the small scale sector.

Asian Alloys Limited

• Asian Alloys Limited (AAL) manufactures steel ingots and castings.

• Its units are located at Bhiwadi in Rajasthan as well as in Punjab.

• The company’s products are mainly used in the paper and rubber industries.

Kamdhenu Ispat Limited • Kamdhenu Group is a manufacturer of international-quality steel bars and paints.

• The steel-bars unit is located at Bhiwadi; the paint division is in Alwar.

PSL Limited • PSL manufactures steel pipes.

• The company's products include protective coatings for steel pipes, epoxy coatings for reinforcement bars, epoxy powder paint and galvalum range of aluminium sacrificial anodes.

• It is involved in iron-ore processing.



75

Contents

Advantage Rajasthan







76

Key approvals required … (1/2)

Approvals andclearances required

Respective departments of state Estimated time

Industrial licence

Sponsorship for raw materials and inputs

Land allotment

Industrial Commissionerate and State Revenue Department

15 days

30 days

30 days at the district level

60 days for state government approval

Incentives Bureau of Investment Promotion30 days for district-level clearance

45 days for state-level clearanceSanction of loan Rajasthan Financial Corporation (RFC) 60 days

Site approval and environmental clearance

Adequacy certificate

No-objection certificate

Department of Environment

Rajasthan State Pollution Control Board

90 days

Green category: 30 days

Red category: 45 days


DOING BUSINESS IN RAJASTHAN

77

Service/facility Concerned agency Timelines

Release of power connection

Jaipur Vidyut Vitran Nigam Limited*

Ajmer Vidyut Vitran Nigam Ltd^

Jodhpur Vidyut Vitran Nigam Limited

Load up to 60 HP: issue of demand notice in 21 days

Release of connection: 30 days from demand notice

Load from 60 HP-300 KW: demand notice in 30 days

Release of connection: 60 days from issue of demandnotice

Load 300-3,000 KW: issue of demand notice in 60 days


Load above 3,000 KW: issue of demand notice 60 days


Key approvals required … (2/2)

*Responsible for 12 districts of Rajasthan, namely Jaipur, Dausa, Alwar, Bharatpur, Dholpur, Kota, Bundi, Baran, Jhalawar, Sawaimadhopur, Tonk and Karoli.^ Responsible for 11 districts of Rajasthan, namely Ajmer, Bhilwara, Nagaur, Sikar, Jhunjhunu, Udaipur, Banswara, Chittorgarh, Rajsamand, Doongarpur and Pratapgarh.



78

Cost of doing business

Cost parameter Cost estimates Source

Industrial land (per sq ft) US$ 75 to US$ 151 Property dealers

Labour cost (per man year) US$ 2.1 to US$ 2.5 Industry sources

Hotel costs (five star) US$ 95 to US$ 385 per room per night Leading hotels in the state

Office space rental (per sq ft) US$ 0.22 to US$ 2.5 per month Property dealers

Residential space rental US$ 0.05 to US$ 0.28 per sq ft per month(rates depend on the type of structure and location) Property dealers

Power cost (per kWh) Industrial use (Jaipur): US 7.6 cents to US 8.7 centsFixed charge: US$ 0.76 to US$ 1.96 per HP

Jaipur Vidyut Vitran Nigam Limited (Jaipur Discom)

Cost of water (per kl)

Commercial and industrial: 0 to15,000 kl: US 24 cents 15,000 to 40,000 kl: US 35 cents 40,000 kl and above: US 50 cents

Public Health Engineering Department, Rajasthan

HP: horsepower; kl: kilolitre



79

Single-window clearance mechanism

• District Single Window Clearance Committee for each district in the state which is chaired by the Deputy Commissioner, with senior-most officers of concerned departments in the district as members.

• Empowered Committee chaired by Chief Secretary to Government of Rajasthan and with Principal Secretaries of concerned state departments as members.

• State Board with the Chief Minister of Rajasthan as its Chairman and ministers of state departments as its members.

Chief Secretary

Deputy Commissioner

Board of Infrastructure Development

and Investment (BIDI)

State Level Empowered Committee -

(SLEC)

District Level Empowered Committee

Under the chairmanship of

Nodal Agency

Bureau of Investment Promotion

District Industry Centre –

district level

Chief Minister of Rajasthan



80

Key investment promotion offices

Bureau of Investment Promotion (BIP)

• BIP is the state government's nodal agency for attracting foreign direct investment (FDI) and non-resident Indian (NRI) investments. BIP functions as a single-window agency for clearing all medium and large-scale investments.

• BIP assists in investing in Rajasthan in many ways such as identifying investment opportunities, providing access to information that is critical to setting up of project, translation of investment possibilities into concrete investment proposals, site-selection activities and obtaining infrastructural facilities. It helps in interfacing with government departments for required clearances.

Rajasthan State Industrial Development and Investment Corporation (RIICO)

• RIICO is the sole agency in the state that develops land for the industrial growth. It provides financial assistance and other vital infrastructural facilities for industries.

Rajasthan Financial Corporation (RFC)

• RFC provides medium and long-term loans for new-industrial units in the SME sector. It also assists in the planning a balanced development of industries in the state.

Project Development Corporation • This corporation identifies commercially viable infrastructure projects, prepares detailed feasibility and investment reports and offers to the private sector for implementation.



81

Contact list

Key agency Contact information

Bureau of Investment Promotion (BIP)

Udyog Bhawan, Tilak MargJaipur - 302005, RajasthanPhone: 91-141-2227 274, 2227 812, 2227 713Fax: 91-141- 2227 506E-mail: [email protected]: http://www.investrajasthan.com/

Rajasthan State Industrial Development and Investment Corporation (RIICO)

Udyog Bhawan, Tilak MargJaipur, RajasthanPhone: 91-141-5113 200 /5113 208/5113 211E-mail: [email protected]: www.riico.com

Rajasthan Financial Corporation (RFC)

Udyog Bhawan, Tilak MargJaipur - 302005, RajasthanPhone: 91-141-2385 522 Fax: 91-141-2385 503 E-mail: [email protected]

Project Development Corporation

First Floor, LIC Jeevan Nidhi BuildingNear Ambedkar Circle, Bhawani Singh Road, Jaipur - 302005, RajasthanPhone: 91-141-2747012-14Fax: 91-141-2747045 E-mail: [email protected]



mailto:[email protected]�


http://www.riico.com/�



82

Annexure … (1/3)

Education/Occupation

Illite

rate

Scho

ol u

p to

four

ye

ars/

lite

rate

,bu

t no

form

al

scho

olin

g

Scho

ol u

p to

five

to

nin

e y

ears

SSC

/HSC

Cer

tific

ate

cour

se,

but n

otgr

adua

te

Gra

duat

e/po

st

grad

uate

ge

nera

l

Gra

duat

e/po

st

grad

uate

prof

essio

nal

Unskilled workers E2 E2 E1 D D D D

Skilled workers E2 E1 D C C B2 B2

Petty traders E2 D D C C B2 B2

Shop owners D D C B2 B1 A2 A2

Entrepreneurs: employee none D C B2 B1 A2 A2 A1

Entrepreneurs: employee < 10 C B2 B2 B1 A2 A1 A1

Entrepreneurs: employee > 10 B1 B1 A2 A2 A1 A1 A1

Self-employed professionals D D D B2 B1 A2 A1

Clerical/salesman D D D C B2 B1 B1

Supervisory level D D C C B2 B1 A2

Officers/executives: junior C C C B2 B1 A2 A2

Officer/executive: middle/senior B1 B1 B1 B1 A2 A1 A1

Socio-economic classification (SEC) of urban and rural households – urban grid



83

Annexure … (2/3)

EducationType of house

Pucca Semi pucca Kuccha

Illiterate R4 R4 R4

Literate but no formal school R3 R4 R4

Up to fourth standard R3 R3 R4

Fifth to ninth standard R3 R3 R4

SSC/HSC R2 R3 R3

Some college but not graduate R1 R2 R3

Graduate / post graduate (general) R1 R2 R3

Graduate / post graduate (professional) R1 R2 R3

Socio-economic classification (SEC) of urban and rural households – rural grid

Source: Market Research Society of India



84

Annexure … (3/3)

Year INR equivalent of one US$ 2000 46.62001 48.32002 48.02003 45.62004 43.72005 45.22006 45.02007 42.02008 40.22009 46.0

Exchange rates

Average for the year



85


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