Uttarakhand is likely to attract Rs 50,000-crore investments by the end of 11th Five Year Plan and generate direct and indirect employment opportunities for over 2 lakh trained and semi-trained population, says a study by Associated Chamber of Commerce and Industry (Assocham).
The study, released exclusively to FE by Assocham, says Uttarkhand?s industrial growth, which was a paltry 1.9% in 2001-02, has now touched over 20% in 2008-09.
Ashok Leyland will invest Rs 2,000 crore in the state as part of its expansion plan by purchasing 17 acre at Pant Nagar for a manufacturing facility.
Other major companies include Dabur, Hindustan Lever Limited, Britannia Industries Limited, ITC Limited, Cavinkare Private Limited, Bhel, Mahindra and Mahindra, LG, Atlas, Global Auto Tech, Elder Pharma, Medicamen. Twenty First Century Printers Limited, Somani Foam Limited, Polar Industries Limited, Havell?s India Limited, VIP Industries Limited and Lakhani India Limited. Ashok Leyland, Atlas, Ashai India and Eureka Forbes have also set up manufacturing facilities in the state.
The study suggests that Uttarakhand government should encourage setting up of SEZs and agri economic zones (AEZs) in the state. These could be developed for multiple products and generate enormous employment opportunities.
The suggestions also include setting up of hydropower projects, especially mini and captive power plants in the state and avoiding thermal power stations. Approximately 18,000-mw hydropower can be generated in the state by identifying sites.
Also, the government should develop upper belt of Garhwal and Kumaon region to lure tourists. The state has enough sites for adventure tourism like skiing, mountaineering, trekking and water sports.
Call centres and BPO hubs could be set up in places like Musoorie, Hardwar, Rishikesh, Pantnagar and Almora, which could become a key driving force for GDP growth of the state. The state should encourage foreign direct investment in the field of auto components, engineering goods, IT and tourism. During 1991 to 2006, the state had foreign direct investment (FDI) approval of over Rs 3 billion and could exceed substantially to over Rs 10 billion.
According to Assocham analysis in 2008, the state was able to attract over Rs 6,000 crore of domestic corporate investment and is becoming ideal destination for the investors in terms of tax holidays and other fiscal incentives provided by the state.
There are over 175 medicinal and aromatic plants that are grown in foothills of Uttarakhand. Also, fruit like apples, oranges, pear, grapes peach, plum apricot, litchi, mangoes and guava are widely grown in the state, suggesting potential for development of horticultural crops. The state can be among the top 10 in fruit and vegetable production by using innovative agri-biotech varieties of technologies. It had fruit and vegetable production of approximately 69,300 and 47,000 metric tonne in 2006 and could more than double in next 4 to 5 years.
Biotechnology can also make significant contributions in the field of agriculture and animal health care in the state.
On the lines of a biotechnology park in Pantnagar, more parks could be set up in other parts of the state for which the report suggests a tax holiday for a period of 10 years.