Best Business Opportunities in Jharkhand - Identification and Selection of right Project, Thrust areas for Investment, Industry Startup and Entrepreneurship
Mining & Minerals: Project Opportunities in Jharkhand
Minerals are valuable natural resources being finite and non-renewable. They constitute the vital raw materials for many basic industries and are a major resource for development. Management of mineral resources has, therefore, to be closely integrated with the overall strategy of development; and exploitation of minerals is to be guided by long-term national goals and perspectives. Ministry of Mines is responsible for survey and exploration of all minerals, other than natural gases, petroleum and atomic minerals, for mining and metallurgy of non-ferrous metals like aluminium, copper, zinc, lead, gold, nickel, etc. and for administration of the Mines and Minerals (Regulation and Development) Act, 1957 in respect of all mines and minerals other than coal, natural gas and petroleum.
The newly carved out resource rich State of Jharkhand is widely acclaimed as the region of the future, having immense potential for industrialisation with its large deposits of minerals which could provide a firm launching pad for various industries.
Jharkhand is one of the richest zones of minerals in the world. The 40% of the total minerals of the country are available in this state. The State is the sole producer of cooking coal, uranium and pyrite. It ranks first in the production of coal, mica, kyanite and copper in India. The geographical exploration and exploitation of gold, silver, base metals, decorative stones, precious stones, etc. are the potential areas of the future. Jharkhand is also endowed with other resources such as surface and ground water, land with immense bio-diversity, moderate climate, disciplined and skilled manpower, adequate availability of power, which are the basic essentials for the growth and development of industries.
Jharkhand region is generously endowed with Mineral Wealth and the State Government is committed to create an environment conducive to the growth of Mining and Mineral based Industries in the State. In view of this, the State's Industrial policy covers certain clauses relevant for Mining and Mineral sector, which are enumerated below:
• Simplify procedures and expedite granting of mining leases.
• Provide certain relief to make mining activities easier.
• Encourage use of modern exploration techniques to set up a resource inventory of various minerals in the State.
• Encourage joint venture projects with SMDC.
• Clear mining lease applications and project report within 60 days.
• Encourage foreign investment and technological collaboration by OCBs and NRIs in selected sectors including Mineral development.
• Encourage Private Sector participation in Mining Activities
Jharkhand State Mineral Development Corporation Ltd. was incorporated on 7th May, 2002 after bifurcation from Bihar State Mineral Development Corporation Ltd. JSMDC is a Government of Jharkhand Undertaking under the Dept. of Mines & Geology, Govt. of Jharkhand. It is premier producer and supplier of minerals and mineral based products in the State of Jharkhand. Core business of the Company is production and marketing of coal, limestone and its powder, kyanite, graphite, granite blocks and manufacturing of granite tiles of smaller dimensions. JSMDC is a consistently making profit company. Annual turnover is more than 100 Crores in the current fiscal year.
Agro-Based Industries: Project Opportunities in Jharkhand
Agro-based industry would mean any activity involved in cultivation, under controlled conditions of agricultural and horticultural crops, including floriculture and cultivation of vegetables and post-harvest operation on all fruits and vegetables. The development of agro-industries has assumed crucial importance in the economic planning and progress of the country. The agro industry is regarded as an extended arm of agriculture. The development of the agro industry can help stabilise and make agriculture more lucrative and create employment opportunities both at the production and marketing stages. The broad-based development of the agro-products industry will improve both the social and physical infrastructure of India. Since it would cause diversification and commercialization of agriculture, it will thus enhance the incomes of farmers and create food surpluses. The state of Jharkhand having diversified agro-climatic conditions is much suited for the development horticulture based economy that has ample scope for its growth.
The agro-climatic conditions of the State are conducive for commercial cultivation of large varieties of fruits, vegetables,flowers and medicinal and aromatic plants. Plantation and Horticulture is one of the important sub sectors of Agriculture having ample scope for expansion in the state of Jharkhand. The state of Jharkhand has a total geographical area of 79.7 lakh ha out of which cultivable land is 38 lakh ha. The net irrigated area is only 1.57 lakh ha which is only 8% of the net sown area. The total area occupied for plantation and horticulture crop in the state is about 2.57 lakh hectares. Different kinds of fruits are grown in Jharkhand. The crops grown in Jharkhand are Mango, Litchi, Stone fruit (Peach), Citrus (Lime/Lemon), Awla and Papaya in fruits, Chilli, Turmeric and Ginger in spices, Rose, Marigold, Gerbera, Carnation and Gladiolus among flowers, Lemon grass, Palmarosa and Rosa damascena in aromatic plants, Cashew in Plantation crops. Jharkhand endowed with vast impounded fresh water resources in the form of tank/ponds and reservoirs. The major plantation crops cultivated in the State are cashew nut and coconut. The Board has identified the State as high potential State for coconut cultivation as the average productivity of coconut palm is 36 nuts per palm, which is above the national average of 34 nuts. Cashew nuts popularly known as a gold mine of wastelands is very ideal for cultivation in wastelands and hence there is good potential for cashew cultivation especially in East and West Singhbhum districts. Tea plantation in a small measure has been taken up in Ranchi district, which has a favourable climate for growing tea.
The promotion of Agro-based industries is among the priorities of the State Government. The state has assured supply of fruits & vegetables grown by applying scientific techniques, investment in post harvest and good transport infrastructure. The National Horticulture Mission (NHM) in the Jharkhand State was launched in late 2005-06 initially in 10 districts with main focus on production of planting materials, vegetable seed production, establishment of new gardens, creation of water resources etc. Establishment of new gardens include perennial and non perennial fruits, spices, floriculture, aromatic and medicinal plants. This scheme was 100 % sponsored by Central Govt. during 2005-06 and 2006-07 (Xth Five Year Plan). However, during 2007-08 and onwards (XIth Five Year Plan) this scheme has been implemented in 15 districts with the pattern of assistance as 85:15 by Central Govt. and State Govt. respectively. The Jharkhand government has decided to set up a food park to kick off the development of the food processing sector in the state and attract investors. In general very few small scale food processing industries are present in the state.
Sericulture (Tasar Silk): Project Opportunities in Jharkhand
Sericulture is an agro-based industry. It involves rearing of silkworms for the production of raw silk, which is the yarn obtained out of cocoons spun by certain species of insects. The major activities of sericulture comprises of food-plant cultivation to feed the silkworms which spin silk cocoons and reeling the cocoons for unwinding the silk filament for value added benefits such as processing and weaving. Silk is a fine strand of fiber that is a solidified secretion produced by certain caterpillars to encase themselves in the form of cocoons. India is second largest producer of silk. Sericulture industry is looking out for the developments of young age silk worm rearing or chawki rearing. Care of silk worms start from the stage of procurement of silk worm eggs from the grainage itself. Silk worm eggs are distributed to the farmers for commercial rearing when active development of embryo is in progress. The important aspect of young silkworm rearing management are a suitable separate rearing house or room, well maintained mulberry garden with assured irrigation facilities. Sericulture has emerged as a virtual lifeline and a profitable employment avenue for villagers in Maoist-affected areas in India's eastern Jharkhand. Under the aegis of the Jharkhand state industrial department, farmers are beginning to rear silkworms.
Jharkhand, much like Chattisgarh and Uttaranchal, is endowed with adequate forest cover. These forests are home to two species of trees -Arjuna (Terminalia Arjuna) & Asan (Terminalia Tomentosa) which are breeding ground for the moth which produces the cocoon from which Tasar yarn is reeled. Jharkhand's forest department is also planning to encourage planting of Arjuna trees in place of the traditional Acacia or Eucalyptus trees. Tussar Food plants are available over an area of 9 lakh hectares. The Singhbhum and Santhalpargana regions are the main silk producing centres in the State. The State is promoting this activity through 28 pilot project centres situated in different areas. Each rearer can rear on an average 200 eggs or Disease Free Laying (DFLs) so the annual demand of commercial seed or egg is of 130 lakh. There are three types of seeds or eggs – Nucleus, Basic seed and Basic seed multiplied to commercial seed.
Tasar culture is a backbone for Tribal development, and the Government of India, through the Central Silk Board and different State Governments have initiated several developmental and welfare measures for the tribal welfare through it. Jharkhand's forest department is also planning to encourage planting of Arjuna trees in place of the traditional Acacia or Eucalyptus trees. Jharkhand Sericulture Development Institute (JSDI) and Jharkhand Silk Technical Development Institute (JSTDI) are being strengthened to give an impetus to this sector. During the year 2010-11, it is proposed to rear 2.35 lakh tasar nucleus DFLs, 16 lakh of tasar basic DFLs and 96 lakh of commercial DFLs through seed and commercial rearers in the State. It is proposed to be benefited 40,000 -50,000 Tasar farmers through Tasar seed production and its rearing during the year.
Steel Industry is a booming industry in the whole world. India’s economic growth is contingent upon the growth of the Indian steel industry. Consumption of steel is taken to be an indicator of economic development. While steel continues to have a stronghold in traditional sectors such as construction, housing and ground transportation, special steels are increasingly used in engineering industries such as power generation, petrochemicals and fertilisers. Indian Steel Industry is more than a century old. India has now emerged as the eighth largest producer of steel in the world with a production capacity of 35MT. Almost all varieties of steel is now produced in India. India has also emerged as a net exporter of steel which shows that Indian steel is being increasingly accepted in the global market. The growth of the steel industry in India is also dependant, to a large extent, on the level of consumption of steel in the domestic market. Steel consumption is significant in housing and infrastructure. In recent years the surge in housing industry of India has led to increase in the domestic demand for steel.
Jharkhand emerges as hub for steel companies. The state is endowed with deposits of Iron Ores of both, Hematite & Magnetite. The Hematite deposits are mainly located in the West Singhbhum District and have a resource base exceeding 3700 Million Tonnes. These have been explored only in pockets by large industry houses in their lease hold. There is a very good scope of enlarging this resource base by further exploration. The Magnetite Deposits are located in the East Singhbhum, Latehar & Palamu districts. They comprise lenticular ore bodies as well as Schist rocks with 80 to 36% magnetic. The exploration of these bodies is yet to be taken up. The existing steel mills are sourcing their iron ore (Hematite) from West Singhbhum. The Magnetite ore is being used in heavy media coal washeries & paints. Tata Steel's largest plant is located in Jamshedpur, Jharkhand, with its recent acquisitions; the company has become a multinational with operations in various countries. If the interest shown by all the companies, big and small, in Jharkhand's iron ore deposits translates into reality, the state will produce more than half the total steel in India. First Iron & steel factory is located at Jamshedpur and Largest Steel plant in Asia is Bokaro steel plant.
Under the new industrial policy, iron and steel has been made one of the high priority industries. Price and distribution controls have been removed as well as foreign direct investment up to 100% (under automatic route) has been permitted. The Trade Policy has also been liberalized and import and export of iron and steel is freely allowed with no quantitative restrictions on import of iron and steel items. Tariffs on various items of iron and steel have drastically come down since 1991-92 levels and the government is committed to bring them down to the international levels. With the abolishing of price regulation of iron and steel in 92, the steel prices are market determined. The policy devises a multi-pronged strategy to achieve these targets with following focus areas; removal of supply constraints especially availability of critical inputs like iron ore; improve cost competitiveness by expanding and strengthening the infrastructure in roads, railways, ports and power; increase exports; meet the additional capital requirements by mobilizing financial resources; promote investments by removing procedural delays. In addition the policy also addresses challenges arising out of environmental concerns, human resource requirements, R&D, volatile steel prices and the secondary sector.
Rural Industries: Project Opportunities in Jharkhand
Rural industry is an important source of employment for workers shifting out of agriculture. The rural industry continues to play a significant role in the expansion ofemployment, improvement in productivity and earnings, and poverty reduction in many non-industrialized countries; this is particularly the case in India. This sector has immense export potential which needs to be exploited to earn foreign exchange. To give thrust, the government aims to provide benefits in the various areas such as handloom, handicrafts, khadi village industries, forest based industries etc.
Handloom is labour intensive cottage industry sector providing employment to around 1.5 lakh weavers throughout the State. Various incentives to the handloom weavers are being provided under Deendayal Hastkargha Protsahan Yojana, which aims attaking care of wide gamut of activities, such as basic inputs like looms and accessories, product development, infrastructure support, institutional support, training to weavers, supply of equipment and marketing support, both at micro and macro levels in an integrated and coordinated manner for an overall development of the sector and benefit to handloom weavers. Handicrafts of Jharkhand reflect the cultural heritage, customs and traditions of the State. The State manufactures handicrafts in cane and bamboo works, woodcarving, stoneware, brassware, Lac based handicraft items, paper mache, terracotta, etc. The State Government may set up a model suitable ‘Handicraft Village’ in each of the districts of the State for promoting the traditional arts and crafts of the villages by adopting the "One Tambon One Product" model of Thailand. Various forest produce available in the state are mahua seed, sal seed, shellac, bamboo, kendu leaf, harre, bahera, etc.
Focus of the Rural Industrial Policy:-
1. Providing ample employment opportunities through rural industries.
2. Establishing rural industries and providing help on priority basis for skill enhancement, modern technology, and marketing especially for beneficiaries of scheduled caste, scheduled tribe, backward, and minority sections.
3. Giving priority to participation of women in development of rural industries.
4. Encouraging participation of private sector, non-governmental organizations, cooperative societies, and self help groups for development of rural industries.
5. Implementing cluster approach.
6. Value addition to the minor forest produce and medicinal herbs in the tribal areas of the state itself and passing on the benefits to the tribal population of the area.
7. Connecting rural industries with E-commerce.
With the implementation of the Rural Industrial Policy, active participation of experienced craftsmen and industrialists in the field of handloom, handicraft, leather industry, other cottage industries and silk centers would be ensured for overall development of rural industries in the rural areas.
Tourism: Project Opportunities in Jharkhand
Tourism is one of the fastest growing industries in the world. The number of tourists worldwide has been registering phenomenal growth and it is expected that this number would shortly touch 1.5 billion. Tourism contributes about 11% of the world work force and 10.2% of the global gross domestic products. The dynamic growth of this industry is evident from the fact that a new job is added to this sector every 2.5 second. Jharkhand is endowed with rich cultural heritage and bestowed liberally with bounties of nature. Various initiatives are being taken by the Government and other organizations to promote tourism here. Jharkhand is blessed with an exotic landscape: the rolling hills, beautiful plateaus, sparkling rivers, etc. that largely contribute towards tourism at Jharkhand. Besides, the national parks, wildlife sanctuaries, holy shrines and museums, etc. largely attracts tourists to come to Jharkhand.
Blessed with immense biodiversity, moderate climate, rich cultural and historical heritage, Jharkhand is fast emerging as an ultimate tourist destination in eastern India. Jharkhand Tourism Department is taking utmost initiative to promote tourism in Jharkhand. A good number of hotels run by Jharkhand Tourism and private hoteliers have come up at popular tourist spots, which cater to all segments of travellers. Several Jharkhand Tourism Information Centers have been opened up in various parts of the city. These information centers provide details about Jharkhand travel, hotels, tourist attractions, travel agencies, licensed Jharkhand tourism guides and other important travel tips to holiday makers. Some of the major tourist spots in Jharkhand that play a vital role in the tourism industry of Jharkhand are: Netarhat, Betla National Park, Baidyanath Dham so on. It is noteworthy in this context that Kanke Dam, Ranchi Hill, Tagore Hill, Hatia Dam, Dasham Falls, Jagannath mandir, Jonah Falls, Hoondru waterfalls, etc. are the projects under the Tourism Industry of Jharkhand that heavily contributes towards the economy of the State.
Jharkhand has huge potential in tourism sector. The tourism potential of the state has not been exploited and at the same time tourist spots have not been highlighted at national and international level. Jharkhand government seems to be serious to promote tourism in the state. The State Government would set up a Jharkhand Tourism Development Board to facilitate enter departmental co-operation and coordination to promote Tourism in the State. This Board would be set up under the chairmanship of the Chief Minister of Jharkhand with the Tourism Minister as Vice-chairman and Principal Secretaries/Secretaries of other relevant departments as members. The Board would also have representatives of the Hotel Association, Travel Agents Association, Adventure Sports Operators Association, NGO's and other non-official members having outstanding contribution or expertise in the field of development and promotion of tourism industries. Financial assistance as grants-in-aid, etc would be provided (to this board). The Board would advise the Government to lay down the policy guidelines for the development and promotion of tourism industry in the State, to promote public-private partnership and public sector would undertake all steps to develop and promote tourism in the State.
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