AREAUNDERFORESTS

70%

AREAUNDERAGRICULTURE&ALLIEDACTIVITIES23.6%
SEXRATIO(Provisional),2011963
POPULATIONDENSITY189PerSq.Km
GrowthRateofGSDPatConstantPricesof200405
Year2012136.87%

MajorAchievements/Initiatives

Agriculture&Forest:
NewAgriculturalProduceMarketingCommitteesAct
promulgatedonthelinessuggestedbyGovernmentofIndia.

FormationofHillSeedCorporationtomeetthedemandofsuitablevarietyofhill
specificseeds.
Detailedsurveymappingresultedinanincreasedforestareatakingthetotalforest
areato70%.
ProtectedAreaNetworkfurtherincreasedbycreatingNandhaurWildlifeSanctuary
andPowalgarhConservationReserve.
VanPanchayatRegulationsrevisedtoensureactivewomenparticipation.
SeparateUniversityforHorticultureandForestryDevelopmenthasbeen
established.

Tourism&CivilAviation:
ConceptNoteonTehriLakeTourismDevelopmentPlanhasbeensubmittedto
PlanningCommission.
Developmentworkson02MegaCircuits(NirmalGangotriMegaCircuitand
HaridwarRishikeshMunikiRetiSwargasharmMegaCircuit)areinprogress.
TheMoUswithPPPPartnersfor03ropeways(JaankichattiYamunotri,Kaddu
KhalSurkandaDevi&ThuligarhPunyagiri)havebeensigned.
CompactershavebeenestablishedinoraroundCharDhamsforSolidWaste
Management.
WorksonexpansionofAirconnectivityunderSPAfor02Airportsand06Helipads
areinprogress.
NewFlightsstartedforLucknow,Thiruvananthapuram&ProposedforKathmandu.
Education&SkillDevelopment:
MajorAchievements/Initiatives
ForreducingextremeshortageofMBBSDoctorsintheState,twoGovernment
MedicalCollegesatDehradunandAlmoraareintheprocessofbeingestablished.
PostGraduateCoursesinitiatedinGovernmentMedicalCollege,Haldwani.

AIIMS,Rishikeshhasbeenoperationalizedwiththestartingofteaching
classes.

ToreduceshortageofParamedicalStaff05NursingColleges,07GNMTC,06

ANMTCshasbeenestablished.
IIMOperationalisedatKashipur,DistrictUddhamsinghNagar.
ICTProjectinPPPModewasrolledoutin125Schoolsandrollouthasbeen
approvedinanother500PrimarySchoolsoftheState.
UnemploymentcumSkillDevelopmentallowanceisbeinggiventotheregistered
unemployedYouthoftheState.
GirlsEducationIncentive(FreeBicyclesinPlainDistrictsandFixedDepositinHill
Districts)schemewaslaunchedtofacilitateeasyaccessofschoolstothegirlchild.
IndustrialDevelopment:
MajorAchievements/Initiatives
TheinvestorfriendlypoliciesresultedintheinvestmentofmorethanRs.35000
croresandgenerationofemploymentabout2lakhpersons.
StateIndustrialDevelopmentCorporationofUttarakhandLtd.(SIDCUL)developed
06modernintegratedindustrialestatesatHaridwarandPantnagar.PhaseIIof
SIDCULwasinauguratedatSitarganj.
LOGISTICHUBwasinauguratedatPantnagarasajointventurebetween
SIDCUL&CONCOR.
08ProjectsofHandloomClusterswerestartedunderIHDSScheme.
ASeparateDepartmentofMicro,SmallandMediumIndustrieshasbeencreated.

MajorIssues
NegativeInvestorsentimentduetoanatmosphereofuncertaintycreatedby
NotificationsunderGreenStatutes.
MigrationofpopulationfromHillDistrictstoPlainDistrictsduetononavailability
ofeconomicopportunitiesresultingindemographicvacuumaswellasdemographic
substitutioninvulnerableandsensitiveborderareas.
HighpopulationgrowthinPlainDistrictsresultinginshortageoflandfor
AgricultureandIndustrialexpansion.

NonrealizationofHydroPowerpotentialduetoenvironmentalbottlenecksresulting
inlossofpreciousrevenuetotheState.
ConstraintsoninfrastructuredevelopmentlikeRoadsetcresultinginsuboptimal
realizationofTourismpotential,whichcanbeagrowthenginefortheState.
PMGSYTheBurdenofcostescalation

AlthoughPMGSYisfullyfundedbyCentre,yetStateGovernmenthastoarrange
fundfor:
(i)NPV(ii)Compensationforland&buildings(iii)costandtimeoverrundueto
delayinFCClearance(iv)paymentforconstructionofbridgesover50meterspan.
During200607201213GovernmentofIndiaprovidedRs.1303crorefor
PMGSY.AgainstwhichtheStateofUttarakhandhadtomakeprovisionofRs.465
crore.Thustheactualratiois74:26insteadof100%funding.

ThereforeCostescalationduetodifficulttopographyoftheregionanddelayedforest
clearanceinPMGSYshouldbefactoredinandgivenaspartofCentralShare.
GreenIndex
GreenStatutes(FCA,IndianForestAct,WildlifeConservationActetc.)impedingthe
developmentofGreenSurplusStates.
GreenStatutesPenalizesStateslikeUttarakhandforremainingGreen(70%under
forestarea,47%ForestCover&14%ofForestAreaunderProtectedAreaNetwork)
whileremainssilentonStateswhichareBrown.
GreenBonus
Theforests,alpinemeadows,glaciersandsnowpeaksofUttarakhandrenderalarge
rangeofecologicalservices(includingsequestrationofCarbonDioxideinthe
atmosphere)tothecountry.Ithasbeenestimatedbyvariousstudiestobebetween
Rs.25,00040,000croreperannum.Inaddition,wehavealsosuomotobannedthe
commercialfellingofgreentreesabove1000maltitudetoprotectourenvironment
sacrificingahugerevenuewhichcouldhavebeenearnedoutofit.Wehavealso
notifiedtheNandhaurWildlifeSanctuaryandPawalgarhConservationReserve
making
thetotalnumberofprotectedareasinUttarakhandto16.Since70%forestareais
coveredbyforest,verylimitedareaisleftfordevelopmentactivitiesthus,thwarting
oureffortsfordevelopment.

Itiswellknownthatcoalbasedthermalenergyandcarbonemissionsaretheleading
causeofenvironmentalpollution,globalwarmingandclimatechangewhileHydro
Powergeneratescleangreenenergy.HoweveritappearsthatMoEFthinksotherwise
asitiscontinuouslyblockingalloureffortstorealizeourtrueHydroPowerpotential
byitsactionslikeunilateraldeclarationofEcoSensitiveZone.
IssueofGreenBonus
Anationalexchangecouldbecreatedwheregreencreditscanbeboughtbygreen
deficitStates.Suchamechanismisavailableglobally.Or,inthealternative,tillsuch
mechanismscomeintoplay,ourStatecanbeincentivisedbygrantofACA.
GlobalYardstickofPolluterPaysandPreserverbecompensatedshouldbe
followed.
DelayingettingclearancesunderForestConservationActresultsincost
overrun&timeoverrun.165projectsareawaitingclearance.
MajorworksandplanschemeshamperedbyForestConservationActand
environmentalissues:

UttarakhandeconomywillbeseriouslyaffectedbytheUttarkashiGangotrieco
sensitivezonenotifiedrecently.Ithasseriouslyhamperedthedevelopmentof
Hydropowerintheregion,asnowHydroProjectsofcapacityofmorethan2MW
willbecompletelybanned.
ForestLandTransferCasesPendingInGOI/MoEF
MajorPowerGenerationProjectssuspendedduetoenvironmentissues.
Loharinagpala,PalaManeriandBhaironghati.

Theworkof400KVLoharinagpalaKoteshwartransmissionlinehasbeenstopped
duetocancellationofabovementioned03powergenerationprojects.
AnexampleofBurdenunderFCAct
ThecostofconstructionofakmofmotorroadinthehillscostsRs.46lakhs(Costperkmin
PlainsRs.28lakhs).
26.9or27%ofthiscostisonaccountofforestandrelatedclearances.
NPVRs.5.4lacs,CompensatoryAfforestationRs.1.00lacs,MuckDisposal
Rs.5.00lacs,RoadsidePlantationRs.1lac,totalRs.12.40lacs.

Whyburdenagreensurplusstatewiththeseleviesandinflatetheperkmcostby27
%?

AreasofConcernPower

ComparedtoanestimatedPotentialof27000MW,Statehasbeenabletodevelop
only3618MW.PowercanbeoneofourGDPDrivers.
However,muchofourhydropowercapacitywillnotseethelightofthedaydueto
acombinationofpressurefromenvironmentalists,religiousgroupsupsetatthe
allegeddespoilationofrivers....thisproblemisfurthercompoundedbytheactionsof
MoEFwherebyitdeclaredalmost4000SqKmareainUttarkashiDistrictasESZin
whichprojectshaving
capacitymorethan2MWwillbecompletelybanned.
TheproblemsinthehydropowersectorareduetodelayedForest/Environmental
clearances,postclearancestoppageofworkwhichcreatesanatmosphereof
uncertaintyforinvestorsandtheStateGovernment.
MonetizationofthePoweroutputoftheseprojectsputonholdworksouttoRs.1651
Croresp.a.whichmaykindlybegivenasACAtillsuchtimetheseprojectsare
cleared
Thereshouldbeatimelimitforgrantofsuchclearancesandtheyshouldhavesome
finality.
ActionsundertheGreenStatutesarecreatinganatmosphereofuncertaintyandzero
investmentinUttarakhand.

StrategicImperatives

Uttarakhandismainlyhilly&borderState.TheStatehas625kmlongborder(350
kmsensitiveborderwithChinaand275kmborderwithNepal).Thisis9%and16%
ofIndiastotalborderwithChinaandNepalrespectively.
Borderareashouldhaveahighstandardoflivingsothattheyserveasa
demographicbuffer......
LookingatthestrategicnatureoftheState,thereisstrongcasefordevelopingawide
networkofrailways,developmentofairports,airstripsandhelidromeswithCentral
Funding.
Issuesmigration
The2011CensusrevealsmigrationfromallhilldistrictsoftheState.Exceptingtwo
HillDistricts,allothershoveraroundapopulationgrowthrateof5%withAlmora
andPauriDistrictsshowinganegativepopulationgrowthof1.73%and1.51%
respectivelyagainstanationalaverageof17%.
ThisreflectstheabsenceoflivelihoodopportunitiesintheHillsandyearningfora
betterqualityoflife.Dissatisfactionofjobs/lackofopportunitiesiscreating
demographicsubstitutioninhillregion.

KeyIndustries,IndustrialPotential&Trends

TraditionalIndustriesHandicrafts,Handloom,WoolBasedIndustry,Khadi&
VillageIndustries
Uttarakhandishosttoseveralhandicraftsindustrieslikecarpetweaving,
woodcarving,brasswareandcopperbasedindustries.Thestateplanstorevivethese
industriestoensureadequatebackwardandforwardlinkagesbywayofcentrally
sponsoredschemes.Handloomindustryiscriticalforemploymentgenerationinrural
areas.ThestateofUttarakhandplanstotapthepotentialoftheseskillrichindustries
bywayofinfrastructuresupport,training,designdevelopment,newtechniques,
packing,marketingeventsandexhibitions.

Woolandwaxbasedindustryandkhadiandvillageindustriesaresomeofthekey
traditionalindustriesoperatinginthestate.Whilethewaxbasedindustryisan
importanthandicraftindustryinthehillregionsofthestate,largesectionofthe
populationinthestateisassociatedwiththewoolbasedindustry.

Biotechnology
Biotechnologyisallsettocontributeremarkablyinthefieldofagriculture,human
andanimalhealthcare,environmentmanagementandprocessindustries.Beinghost
tovastdiversityoffloraandfaunaandrarespeciesofplantsandanimals,itgives
Uttarakhandanaturaladvantageinthesector.
Ahighlevelbiotechnologyboardisbeingsetuptoaddresstherequirementsofthis
sector.
Abiotechnologyparkistobedevelopedthatwillincorporateresourcesandprovidea
focusedinstitutionalsetupforacceleratedcommercialgrowthofbiotechnologyand
bioinformatics.

Thestatehascomeupwithincentivesfortheindustrylikeexemptiononelectricity
dutyongeneratorsets,stampdutyconcessionsandrationalisationoflanduseand
conversioncharges.

IndustrybasedonHerbalandMedicinalPlants
uttarakhandisastorehouseforarichvarietyofherbs,medicinalplantsandaromatic
plantspecies.Withanopiniontoutilizetheseresources,amedicinalandaromatic
plantsexportzonehasbeenestablishedcoveringsevendistrictsandspecialisedherbal
parksareintheoffing.
Manufacturing
Thehugepotentialforhydelpowergenerationandconsequentlythepossibilityofa
readysupplyofcheappowermakesthestateanidealdestinationformanufacturing
investmentacrossawholerangeofsectors.Highliteracyratesandthepresenceof
highqualityeducationalinstitutionswouldensureareadysupplyoflowcost,good
qualitylabour.
Tourism
Thecombinationofavastpoolofresourcesandinitiativestoimproveinfrastructure
shouldgivetourismaboostinthemediumtolongterm.

BusinessOpportunitiesinUttarakhand

PowerandInfrastructure:Thecreationofinfrastructureitselfwithinthestateoffers
tremendouspotentialforprivateinvestment.Forapotentiallypowerrichstate,the
generation,transmissionanddistributionofpowerprovidevastinvestment
opportunity.Significantopportunitiesareavailablefortheconstructionofindustrial
parks,specialisedproductionzonesforIT.Thestatehassignificantuntapped
potentialforgeneratinghydropower.ThelargestdaminAsia,Tehri,willserveasa
usefulassetinachievingthistarget.Thestatehasapotentialtogeneratenearly15,000
MWofhydropower.

Tourism:Uttarakhandoffershugeopportunitiesfortourismrelatedactivities.The
governmenthassetupUttarakhandTourismBoardtofunctionasanapexbodyfor
developmentoftourism.
AgroandForestBasedIndustry:Sinceasignificantportionofuttarakhandisunder
forestcoverthusofferingexcellentpotentialforthedevelopmentofforestresources
basedindustriesinthestate.Ampleopportunityalsoexiststodevelopagrowaste
industries.uttarakhandishosttoallmajorclimaticzonesthatmakesthestatesuitable
forfoodpreservationandfloriculture.Thistogetherwithminimumtemperatureand
chillfactorconditionsprovideabundantopportunitiesinsettingupcoldchain
technologies,rootstockcultivationandprocessing,horticulturefarms,foodprocessing
industry,contractfarmingherbalandmedicinalplantscultivation.FourAgriExport
Zones(AEZs)havealreadybeendeclaredundertheAEZschemeofGovernmentof
Indiaforleechi,horticulture,herbs,medicinalplantsandbasmatirice.Thestate
governmentisalsoprovidingmatchingsubsidyforprojectsundervariousschemesof
AgriculturalandProcessedFoodProductsExportDevelopmentAuthority(APEDA),
NationalHorticultureBoard(NHB),MinistryofFoodProcessingIndustry(MFPI)
andtheNaturalMedicinalPlantBoard(NMPB)subjecttoamaximumlimitofUSD
45,610.
KnowledgeBasedIndustry:Thepresenceofhighliteracylevelsaswellasquality
educationalinstitutesmakesUttarakhandsuitableforthelocationofsunriseindustries
suchasbiotechnologyandIT.
KeyInvestments
InvestorconsortiumtodeveloptourismhubinUttarakhand
UttarakhandasMahindra&Mahindra'sthreewheelermanufacturingbase

AsahiIndiaGlasstosetupunitinUttarakhand
UttarakhandtohostHeroHonda'smanufacturingbase
MedicinalandAromaticPlantsSectortoReceiveSignificantInvestment
UttarakhandtoreceiveUSD57.65millioninvestmenttopromotebamboo
plantation
ITParktopromoteITandITESinUttarakhand
PromotingPrivateIndustrialEstateinUttarakhand
Uttarakhandasoneofthebiggestmanufacturingfacilitybaseofairconditioners
BritanniatosetupGreenfieldprojectinUttarakhand

SomeofthekeyindustriesthatcurrentlyoperateintheStateare:

BharatHeavyElectricalsLimited(BHEL)
CenturyTextilesandIndustries(CTIL)
Surya
IndiaGlycols
EurekaForbes
ITC
Hiltron
TATAMotors
HCLInfosystem
NestleIndiaLtd.