Identified Project Opportunities - Himachal Pradesh
Agriculture & Horticulture: Project Opportunities in Himachal Pradesh
Agriculture Sector of Indian Economy is one of the most significant part of India. Agriculture is the only means of living for almost two-thirds of the employed class in India. About 65% of Indian population depends directly on agriculture and it accounts for around 22% of GDP. Agriculture derives its importance from the fact that it has vital supply and demand links with the manufacturing sector. The agriculture sector of India has occupied almost 43 percent of India's geographical area. Agriculture is still the only largest contributor to India's GDP even after a decline in the same in the agriculture share of India
Out of the total geographical area of 55.673 lakh hectares, the area of operational holding is about 9.99 lakh hectares owned by 8.63 lakh farmers. The cultivated area in the State is only 10.4 per cent. About 80 per cent of the area is rain-fed. Rice, wheat and maize are important cereal crops of the State. Groundnut, soyabean and sunflower in kharif and rapeseed/mustard and toria are important oilseed crops in the rabi season. Urad, bean, moong, rajmah in kharif season and gram in rabi are the important pulse crops of the State. Maize is an important crop where surplus is available for processing.
The State has made significant progress in the development of horticulture. The topographical variations and altitudinal differences coupled with fertile, deep and well-drained soils favour the cultivation of temperate to sub tropical fruits. The main fruits under cultivation are apple, pear, peach, plum, apricot nut fruit, citrus fruits mango, litchi, guava and strawberry, etc. The region is also suitable for cultivation of ancillary horticultural produce like flowers, mushroom, honey, hops, tea, medicinal and aromatic plants, etc.
Agriculture, being the main occupation of the people of Himachal Pradesh, has an important role in the economy of the State. It provides direct employment to about 71 per cent of the main working population. Income from the agriculture and allied sector accounts for nearly 21.7 per cent of the total State Domestic Product.
Under the State Industrial Policy, numbers of incentives are available to the investors in food processing industry. Processing industries of ginger, potato and vegetables in valley areas have great investment scope. Besides, the temperate climate of the State is quite suitable for production of disease free seed. The Government is encouraging private sector participation for exploitation of vast seed production potential.
The National Policy on Agriculture seeks to actualise the vast untapped growth potential of Indian agriculture, strengthen rural infrastructure to support faster agricultural development, promote value addition, accelerate the growth of agro business, create employment in rural areas, secure a fair standard of living for the farmers and agricultural workers and their families, discourage migration to urban areas and face the challenges arising out of economic liberalization and globalisation. Over the next two decades, it aims to attain:
• A growth rate in excess of 4 per cent per annum in the agriculture sector;
• Growth that is based on efficient use of resources and conserves our soil, water and bio-diversity;
• Growth with equity, i.e., growth which is widespread across regions and farmers;
• Growth that is demand driven and caters to domestic markets and maximises benefits from exports of agricultural products in the face of the challenges arising from economic liberalization and globalisation;
• Growth that is sustainable technologically, environmentally and economically.
The policy seeks to promote technically sound, economically viable, environmentally non-degrading, and socially acceptable use of country’s natural resources - land, water and genetic endowment to promote sustainable development of agriculture.
Biotechnology: Project Opportunities in Himachal Pradesh
Biotechnology is a field of applied biology that involves the use of living organisms and bioprocesses in engineering, technology, medicine and other fields requiring bio products. Biotechnology also utilizes these products for manufacturing purpose. The Biotechnology sector in India is one of the fastest growing sectors of the Indian Economy. As the sector is mainly based on knowledge, it is expected that it will play an important part in shaping the Indian Economy, which is developing at a rapid pace. The Indian Biotechnology sector holds immense potential in terms of research and development, skill and cost effectiveness.
Himachal has the potential to develop various types of industries using raw material base of fruits, vegetables, high value cash crops and other naturally growing herbal plants. These industries can be in the following: bio-pharmaceuticals, phytochemicals, bio-prospecting, fermentation, post-harvest processing, bio-processing, pharmaceuticals, biochemical, genetically engineered micro-organisms, enzyme production, environment protection and animal husbandry etc.
Biotechnology as a tool has helped in recovery of degraded ecosystem. Some of the methods based on plant biotechnology include reforestation involving micro propagation and use of mycorrhizae. Micro propagation has resulted in increasing the plant cover and thus preventing erosion and giving a climatic stability.
Efforts for establishing Biotechnology Parks with a mission to convert Himachal into 'Herbal Bio business Valley' are at advanced stages. The setting up of BT Parks in Himachal endeavours to create favourable environment for developing a strong BT-based industry as a business entrepreneurship to push the State at centre stage of progress in a short time. The main objectives of the policy are to:-
• Upgrade infrastructural support to R&D Institutions to generate highly skilled human resource in biotechnology
• Intensify R&D work in potential areas of biotechnology, including agriculture, animal husbandry, human health, etc
• Conserve and commercially exploit bio resources of the State for sustainable development
• Attract entrepreneurs for setting up of biotechnology based industries in the State
• Promote diversified farming of high value cash crops, conservation and commercial exploitation of bio resources
• Provide suitable institutional framework to achieve these objectives.
Textiles: Project Opportunities in Himachal Pradesh
The Indian textile industry is one of the largest industries in the world. The textile industry in India is the largest provider of employment after agriculture. This industry is one of the earliest industries of India to come into being; it is presently the second biggest industry in the world after China. Over the years, this industry has proved to be the provider of the basic requirements of the people. The industry holds a vital place in the Indian economy as it makes a contribution of 14 % to the industrial production of the country and at the same time sums up 4% of the total GDP of India. Along with contributing to the Indian economic scenario in terms of employment, involvement in the industrial production, foreign revenues the textile industry of India also contributes to the global textile economy. It contributes to the global textile fibre and yarn production.
Textile industry in Himachal Pradesh has grown at 12.78% CAGR (2002-2005). Textile industry in Himachal Pradesh is mainly focussed on spinning yarns. A few companies such as Vardhman are also engaged in weaving and dyeing. Handloom and carpet weaving have mainly developed as small scale industries.
The Ministry of Textiles in India has formulated numerous policies and schemes for the development of the textile industry in India. The government of India has been following a policy of promoting and encouraging the handloom sector through a number of programmes. Most of the schematic interventions of the government of India in the ninth and tenth plan period have been through the state agencies and co-operative societies in the handloom industries. Some of the major acts relating to textile industry include: Central Silk Board Act, 1948, The Textiles Committee Act, 1963, The Handlooms Act, 1985, Cotton Control Order, 1986, The Textile Undertakings Act, 1995 Government of India is earnestly trying to provide all the relevant facilities for the textile industry to utilize its full potential and achieve the target. The textile industry is presently experiencing an average annual growth rate of 9-10% and is expected to grow at a rate of 16% in value, which will eventually reach the target of US $ 115 billion by 2012. The clothing and apparel sector are expected to grow at a rate of 21 %t in value terms.
Pharmaceuticals: Project Opportunities in Himachal Pradesh
The Pharmaceutical industry in India is the world's third-largest in terms of volume and stands 14th in terms of value. The Indian pharmaceuticals market is expected to reach US$ 55 billion in 2020 from US$ 12.6 billion in 2009. The pharmaceutical industry in India meets around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles. There are about 250 large units and about 8000 Small Scale Units, which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units).
Himachal Pradesh is emerging as the pharmaceutical manufacturing hub of the country. Almost all the leading pharmaceuticals majors have set up their units in our state or are in process of setting of units. Most of the pharmaceuticals companies setting up unit in Himachal Pradesh. HP is becoming a hub for pharmaceuticals manufacturing companies, with over 300 pharmaceuticals firms setting up units there. Pharmaceuticals companies waiting in the wings to set up units in HP include majors such as Ranbaxy, Cipla, Dr Reddy's, Nicolos Piramal and Dabur, among others.
• Industrial licensing for the manufacture of all drugs and pharmaceuticals has been abolished except for bulk drugs produced by the use of recombinant DNA technology, bulk drugs requiring in-vivo use of nucleic acids, and specific cell/tissue targeted formulations.
• Reservation of 5 drugs for manufacture by the public sector only was abolished in Feb. 1999, thus opening them up for manufacture by the private sector also.
• Foreign investment through automatic route was raised from 51% to 74% in March, 2000 and the same has been raised to 100%.
• Automatic approval for Foreign Technology Agreements is being given in the case of all bulk drugs, their intermediates and formulations except those produced by the use of recombinant DNA technology, for which the procedure prescribed by the Government would be followed.
• Drugs and pharmaceuticals manufacturing units in the public sector are being allowed to face competition including competition from imports. Wherever possible, these units are being privatized.
• Extending the facility of weighted deductions of 150% of the expenditure on in-house research and development to cover as eligible expenditure, the expenditure on filing patents, obtaining regulatory approvals and clinical trials besides R&D in biotechnology.
• Introduction of the Patents (Second Amendment) bill in the Parliament. It, inter-alia, provides for the extension in the life of a patent to 20 years.
Cement: Project Opportunities in Himachal Pradesh
The cement industry presents one of the most energy-intensive sectors within the Indian economy and is therefore of particular interest in the context of both local and global environmental discussions. Increases in productivity through the adoption of more efficient and cleaner technologies in the manufacturing sector will be effective in merging economic, environmental, and social development objectives. The Indian cement industry is highly fragmented with the top few accounting for more than 50% of the industry capacity. The rest is distributed among the large number of small players. The cement industry in India has come forward as the second largest in the world, showing a total capacity of around 230 MT (including mini plants). However, on account of low per capita consumption of cement in the country (156 kg/year as compared to world average of 260 kg) there is still a huge potential for growth of the industry.
Himachal Pradesh has ample supply of quality limestone. State exports approximately half of the cement production to other states. The annual cement production of Himachal Pradesh is likely to increase further with the commissioning of a new facility in 2015. Already, the state is producing more than 9 million tonnes of cement. Three new cement plants have been approved. The major companies are Larsen and Toubro, Grasim industries and Harish Chandra limited
The government of India has set ambitious plans to increase the production of cement in the country, and to attain the target the government has made huge investments in the sector. The Department of Industrial Policy and Promotion, which falls under the central Ministry of Commerce and Industry, is the agency that is responsible for the development of the cement industry in the country. The agency is actively involved in keeping track of the performance of cement companies in the country and provides assistance and suitable incentives when required by the company. The department is also involved in framing and administering the industrial policy for foreign direct investments in the sector. Apart from formulating policies, the department also promotes the industry to attract new foreign investments in the sector.
Livestock: Project Opportunities in Himachal Pradesh
Livestock sector plays a critical role in the welfare of India's rural population. It contributes nine percent to Gross Domestic Product and employs eight percent of the labour force. This sector is emerging as an important growth leverage of the Indian economy. As a component of agricultural sector, its share in gross domestic product has been rising gradually, while that of crop sector has been on the decline. In recent years, livestock output has grown at a rate of about 5 percent a year, higher than the growth in agricultural sector.
Livestock keeping is very common in Himachal Pradesh. 19 out of every 20 households keep at least one of the species of livestock. Bovine is most common species, of the total households in Himachal Pradesh 91.39 % have bovine. Goat is next important livestock in the state. Nearly one fourth of the total household’s rear goat. Similarly two out of every fine household keeps a sheep. Households keeping poultry accounted for 5.54% of the total households in the state.
• Improve staff skills in management, working with communities and additional skills in project planning, implementation monitoring/evaluation and documentation and enhance the effectiveness of services, through development of process and organization skills within staff along with strong technical knowledge.
• Set up a HID Cell to function as a planning and monitoring hub for AHD personnel and their professional development for the department.
• Establish functional linkages through a supportive administrative framework to further the objectives of the livestock sector policy with important line departments like Panchayati Raj, Rural Development, Health Care and Agriculture along with NGOs and CBOs down to the village level.
• Set up an empowered decentralized district Level Committee on livestock resource development to disseminate breeding and animal health services in the districts and monitor the development and funds generated.
Most importantly the policy itself speaks of poverty reduction as one of its primary goals and envisions livestock sector growth with a human face. The draft policy has a renewed focus on improving the livelihood and self-reliance of the poor and other underprivileged sections of the rural society through sustainable development of the sector.
Tourism: Project Opportunities in Himachal Pradesh
Tourism in India is the largest service industry, with a contribution of 6.23% to the national GDP and 8.78% of the total employment in India. The tourism industry in India is substantial and vibrant, and the country is fast becoming a major global destination. India’s travel and tourism industry is one of them most profitable industries in the country, and also credited with contributing a substantial amount of foreign exchange. Indian Tourism offers a potpourri of different cultures, traditions, festivals, and places of interest.
Himachal Pradesh has a natural advantage for the development of tourism as an industry. The State has a rich treasure of places of pilgrimage and anthropological value. It is endowed with geographical and cultural diversity, clean, peaceful and beautiful environment. It has also the pride of being the home to Rishies like Vyas, Prashar,Vashist, Markandey and Lamas, etc. Hot water springs, historic forts, forests, mountains, rivers and rivulets, natural and man-made lakes, etc. are sources of immense pleasure and joy to the tourists. The tribal areas of Himachal Pradesh are known for natural beauty and have recently been opened up to foreign tourists. Tourism industry has been given very high priority and the Government has developed appropriate infrastructure for its development, which includes provision of public utility services, roads, communication network, airports, transport facilities, water supply, civic amenities, etc.
In order to develop tourism in India in a systematic manner, position it as a major engine of economic growth and to harness its direct and multiplier effects for employment and poverty eradication in an environmentally sustainable manner, the National Tourism Policy was formulated in the year 2002. Broadly, the Policy attempts to:-
• Position tourism as a major engine of economic growth;
• Harness the direct and multiplier effects of tourism for employment generation, economic development and providing impetus to rural tourism;
• Focus on domestic tourism as a major driver of tourism growth.
• Position India as a global brand to take advantage of the burgeoning global travel trade and the vast untapped potential of India as a destination;
• Acknowledges the critical role of private sector with government working as a pro-active facilitator and catalyst;
• Create and develop integrated tourism circuits based on India’s unique civilization, heritage, and culture in partnership with States, private sector and other agencies; and ensure that the tourist to India gets physically invigorated, mentally rejuvenated, culturally enriched, spiritually elevated and feel India from within.
Waste management and recycling: Project Opportunities in Himachal Pradesh
Rapid industrialization last few decades have led to the depletion of pollution of precious natural resources in India depletes and pollutes resources continuously. Further the rapid industrial developments have, also, led to the generation of huge quantities of hazardous wastes, which have further aggravated the environmental problems in the country by depleting and polluting natural resources. Therefore, rational and sustainable utilization of natural resources and its protection from toxic releases is vital for sustainable socio-economic development.
Hazardous waste management is a new concept for most of the Asian countries including India. The lack of technical and financial resources and the regulatory control for the management of hazardous wastes in the past had led to the unscientific disposal of hazardous wastes in India, which posed serious risks to human, animal and plant life.
After its success in banning plastic bags in the state, Himachal Pradesh government would be considering imposing ban on use of plastic disposables – cups, plates and glasses – to further strengthen the movement of protecting environment from non-biodegradable products. The State Government in a major move decided to employ a proven environment friendly technology, which uses recycled plastic in the bitumen mixture for roads and the outcome has been encouraging. Himachal Pradesh State Pollution Control Board constructed a stretch of road of approximately 800 meters by using approx. 530 Kg of shredded plastic waste between Tutu-Jubbar Hatti airport in collaboration n with Public Works Department and Municipal Corporation. The waste plastic such as carry bags, disposable cups, and thermocoles, laminated plastics like pouches of chips, pan masala, aluminium foil, and packaging material used for biscuits, chocolates, milk, grocery etc was used in the road construction.
National policy on waste management is set out in the October 1998 policy statement on waste management- Changing our Ways. It outlines the Government's policy objectives in relation to waste management, and suggests some key issues and considerations that must be addressed to achieve these objectives. The policy is firmly grounded in an internationally recognised hierarchy of options, namely prevention, minimisation, reuse/recycling, and the environmentally sustainable disposal of waste which cannot be prevented or recovered.
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