Proactive steps advancement

Biz@India

November-December 2016

RAGHUBAR DAS CM, Jharkhand

With an aim to make Jharkhand an educational hub, the Government strategise to set up hundreds of institutions and targets to skill millions.

What are the recent trends and targets of Jharkhand in terms of economic development & fast growth?

Jharkhand is one of the leading states in India in terms of economic growth with Gross State Domestic Product (GSDP) at INR 2207.29 bn (EUR 30.36 bn) in 2014-2015, with a GSDP growth rate of 11.04% and second highest amongst the 20 major states of India.The GSDP target for twelfth plan (2012-17) for Jharkhand has been set at 7.8%, and the state is expected to achieve the same by a margin considering the growth in recent years. The per capita income at current prices for Jharkhand increased from INR 51,534 (EUR 709) in 2013-14 to INR 58,344 (EUR 802) in 2014-15, witnessing a growth of 13.21%.

What are the most dynamic economic sectors in the state? 

Auto & Auto-components, Agriculture, Food & Feed Processing, Mines & Minerals, Tourism and Textiles are the most dynamic economic sectors in the state.

What are the sectors the government focuses on? What about diversification from primary sectors to new industries, IT and other tech sectors? What is the sector strategy? 

The state has 11 focus sectors viz. Auto & Auto-components, Energy, Agriculture, Food & Feed Processing, Forest & Environment, Healthcare & Medical Education, Industrial Infrastructure, Mines & Minerals, Education& Skill Development, Tourism, Textiles and Electronic Systems Design and Manufacturing (ESDM). The state is actively diversifying away from the primary sector into other sectors and is taking proactive steps for the same. The state has also launched various new policies to promote the other sectors such as Textile, Apparel & Footwear policy 2016, Auto policy 2016, Startup policy 2016, ESDM policy 2016, BPO and IT/ITeS policy 2016.

What are the aims in terms of clusters, industrial parks? What is your  geographical and state organization strategy? 

The state government has taken various initiatives to develop the industrial clusters and parks in the state while developing the industrial areas in parallel. Several industrial areas have been identified across the state with key industries such as –Palamu-Garhwa for Mineral & chemical based industries; Lohardaga for Aluminum industries, power plants; Koderma-Hazaribagh for Mica based industries, power plant, glass, alloy steels, cement, refractory; Ranchi for MSME, IT & ITES, food processing; Dhanbad-Bokaro for Coal industrial area, steel, refractories, coal based power plants; West and East Singbhum for Iron & steel, auto components, cement, horticulture, food processing, silk & textile and IT/ ITES; and Deoghar for Glass, steel, aromatic medicinal plant, coal based power plant, silk textile industries, food processing.

What are you targets and calendar in terms of smart cities? 

The proposed Ranchi smart city will be a Greenfield Project & will serve as a pilot for future ready cities.

What are the needs and next steps in terms of infrastructure?

Jharkhand is located in the East of India and is well connected with the major markets and Tier 1 & 2 cities across India. With 15 national highways crisscrossing through the state, an optimum mix of road and rail-road connectivity connects industrial and handling facilities to ports of Eastern India.Besides, Ranchi being upgraded to an international airport, the Government of Jharkhand intends to develop airstrips at Jamshedpur, Dumka, Dhanbad, Bokaro, Giridih, Deoghar, Hazaribagh, Daltonganj and Noamundi.With ample land, raw-material and power availability and the easiest labour regulation compliance system in India, the state provides the opportunity to setbenchmarks in sustainability and cost effectiveness of industrial and infrastructural investments.The Jharkhand Industrial Area Development Authority (JIADA) is responsible for maintaining and upgrading the state’s industrial land bank. A total of 28 functioning and investment ready areas adding up to about 6,400 acres at present house. The state’s total perspective estimate of land bank available for industrial development is 2.1 million acres. The Government has established a complete digital platform for land bank information access and applications.

What about tourism & eco-tourism development in the state with a rich forest and a rich culture? 

The state has identified and envisioned the tourism sector geographically into six circuits. The state offers an optimum mix of experiences – from rural tourism to adventure and eco-tourism, ethnocultural, religious and emerging niches like mining tourism – the sector promises to better present growth rates of 8 pc and 9 pc for domestic and foreign tourist arrivals respectively.The six tourism circuits are – Ranchi-Hazaribagh-Tilaya; Daltenganj-Mahuadandh-NetarhatRanchi; Ranchi-Bundu-Jamshedpur; Deoghar; Dhanbad; and Saranda. The Jharkhand Tourism Policy 2015 offers a range of incentives aimed at attracting investments inWayside Amenities such as hotels, motels, bus terminals, etc. under PPP mode; Development of Tourist spots with untapped potential; Upgradation, Operation & Maintenance of Tourist complexes are niche areas of Investment; and Enrichment & Development of Tourism circuits.

How do you intend to boost the state skill development and what are the targets in terms of education at the university and institute level? 

The Department of Higher, Technical Education and Skill development has set a vision to make the state of Jharkhand an educational hub of eastern India known for a sustainable, robust and integrated ecosystem of higher, technical education and skill development. The state’s human capital is educated, employable, skilled and competitive to national and international standards. The state intends to achieve an overall Gross Enrolment Ratio (GER) of 32 by Year 2022 and 50 by Year 2032. This requires rampant upgradation and additional 1400 (approx). institutions to achieve the GER of Year 2032. Under the chairmanship of the Secretary, the department has recently witnessed signing of strategic MOUs with leading international firms like CISCO, Oracle, Hewett Packard and Tata Steel to bridge the employability gap amongst its students enrolled across universities, colleges and institutions. These market-led courses oriented towards trade and communication skills will enable students for higher employability in the job market.Government of Jharkhand has set a target of skilling 2 mn youth in next 5 years by engaging leading training partners in the state. To achieve this target in a systematic and time-bound manner, Jharkhand Skill Development Mission has been formed and has been endowed with this task. The state also plans to set-up Mega Skill Development Centres across its 24 districts for high end skilling in hub & spoke model in trades such as Apparels & Textiles, IT/ ITeS, Telecom, Electronics and Construction.Under the Jharkhand Startup policy 2016, State Venture Capital Fund & Entreprenuership Development fund will be setup. Under the Jharkhand Textile, Apparel and Footwear policy 2016, a one-time support of INR 13,000 (EUR 179) per employee will be provided for skill development. It also mentions about Employment generation subsidy of INR 5,000 EUR 69) per month per worker for 7 years for capacity building of workers – INR 6,000 (EUR 82) for SC/ ST/ Women.

Regarding your travel abroad to meet investors in China,what is your strategy to attract them in Jharkhand and what are your assets that you put forward, notably Europeans? 

The state has been conducting roadshow in India and globally to attract investors. The state conducts extensive roadshows and invites the key prospective investors in the specific roadshow destinations. The state leadership conducts one to one meetings with these investors to discuss their proposals and address their queries. While the state offers the available infrastructure and incentives to these investors, the leadership does not abstain itself from offering any special assistance, incentives or support if the same is required by any industry for its successful set-up and operations.