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DELHI

November 2010

DELHI

November 2010

Investment climate of a state is determined by a mix of factors

Skilled and cost-effective labour Labour market flexibility Labour relations Availability of raw materials and natural resources

Procedures for entry and exit of firms Industrial regulation, labour regulation, other government regulations Certainty about rules and regulations Security, law and order situation

Resources/Inputs
Incentives to industry

Investment climate of a state

Regulatory framework Physical and social infrastructure

Tax incentives and exemptions Investment subsidies and other incentives Availability of finance at cost-effective terms Incentives for foreign direct investment (FDI) Profitability of the industry

Condition of physical infrastructure such as power, water, roads, etc. Information infrastructure such as telecom, IT, etc. Social infrastructure such as educational and medical facilities

DELHI

November 2010

Contents
Advantage Delhi State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Delhi

ADVANTAGE DELHI Delhi November 2010

Delhi State profile

Delhi is the capital of the Republic of India and also a state for administrative purposes. It covers an area of 1,483 sq km and is one of the largest metropolis in the country. It is home to the Union Government of the country and the state government offices. Delhi is the epicentre of international politics, trade, culture and literature in India.

The two prominent major topographical features of the city are the river Yamuna and (terminal part of) the Aravalli hill ranges.
The Delhi state is divided into165 administrative villages under nine districts. The Union Governments area is managed by the New Delhi Municipal Council (NDMC). Delhi has a cosmopolitan culture with a mix of languages in use. English and Hindi are commonly spoken for everyday transactions. Punjabi, Bihari and Haryanvi, etc., are the other languages used.
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Delhi

Source: Maps of India

ADVANTAGE DELHI Delhi November 2010

Advantage Delhi (1/2)

The seat of Government


Being the seat of the Central Government, Delhi has an important position in the country in terms of formulation of policies. It has also become an important centre for trade and commerce with a number of key industry associations being present. The state also hosts several trade conventions and fairs throughout the year.

Trade and commerce hub


Delhi has emerged as a key state with immense scope for development of the services industry such as banks and financial services institutions (BFSI), IT and ITeS, consulting, etc. It is a prominent agri-trade centre of the country as well as a preferred tourist destination. Many of the global corporations have offices in the state.

Policy and fiscal incentives


The state proposes a wide range of fiscal and policy incentives for businesses under the Industrial Policy for Delhi, 2010-2021. Additionally, the state has well drafted sector-specific policies.

Source: Maps of India

ADVANTAGE DELHI Delhi November 2010

Advantage Delhi (2/2)


Facilitating infrastructure
Delhi has well developed social, physical and industrial infrastructure and virtual connectivity. It has an international airport and well developed rail and road infrastructure. There has been significant infrastructure and environmental development in Delhi over the last 20 years.

Stable political environment


Delhi has a stable political environment with a single-party government. The State Government has been committed towards creating a progressive business environment.

Rich labour pool


Delhi attracts skilled and semi-skilled labourers from across the country. It has a large pool of skilled and semi-skilled labourers, especially in the 15 to 49 age group who serve the requirements of various industries.
Source: Maps of India

ADVANTAGE DELHI Delhi November 2010

Delhi in figures (1/2)


Parameter Economy GSDP as percentage of all states GSDP 3.6 100.0 CMIE, as of 2007-08, current prices Delhi All-states Source

Average GSDP growth rate (%)^


Per capita GSDP (US$) Physical infrastructure Installed power capacity (MW) GSM cellular subscribers (No) Broadband subscribers (No) National highway length (km) Major and minor ports (No)* Airports (No) Social indicators Literacy rate (%) Birth rate (per 1,000 persons)

13.3
2,136.0

11.8
992.5

CMIE, 2000-01 to 2007-08, current prices


CMIE, as of 2007-08, current prices

4,114.7 18,662,646 588,716 72 1+1

159,398.5 456,586,162 4,981,976 70,548 12 + 187 133

Central Electricity Authority, as of March 2010 Cellular Operators Association of India, as of June 2010 As of October 2008 Ministry of Road Transport and Highways, Annual Report 2008-09 Ministry of Shipping Industry sources

81.7 18.4

64.8 22.8

Census of India, 2001 Ministry of Health & Family Welfare, RHS Bulletin, 2008

^ In terms of Indian rupee. *Delhi has a large inland container depot that serves as a dry port for the North India region

ADVANTAGE DELHI Delhi November 2010

Delhi in figures (2/2)


Parameter Ease of doing business FDI inflows (US$ billion)* Outstanding investments (US$ billion) Industrial infrastructure PPP projects (No) SEZs (No) 10 3 515 577 www.pppindiadatabase.com 23.6 24.3 120.2 1,972.6 Department of Industrial Policy & Promotion, April 2000 to May 2010 CMIE, as of March 2010 Delhi All-states Source

Formal approval, as of August 2010, www.sezindia.nic.in

* Including part of Uttar Pradesh and Haryana PPP: public private partnership, SEZ: special economic zone

Parameter Policy support Sectors with specific policies Availability of labour

Delhi Government

Industry overall, IT and ITeS, Transport Adequate skilled labour available

ADVANTAGE DELHI Delhi November 2010

Key industries with policy thrust and factor advantages


Industry attractiveness matrix

High
IT and ITeS Tourism Agro and food processing Infrastructure development BFSI

Policy thrust

Telecommunication

Medium

Low

Medium *Factor advantage

High

*Factor advantages include benefits due to geographical location and availability of factors like talent pool, natural resources and capital

DELHI

November 2010

Contents
Advantage Delhi State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Delhi

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STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Delhi November 2010

Socio-economic snapshot of Delhi


Parameters Geographical area (sq km) Administrative districts (No) Population density (persons per sq km) Total population (million) Male population (million) Female population (million) Decadal population growth rate (%) Sex ratio (females per 1,000 males) Literacy rate (%) Male (%) Female (%) Life expectancy Male (years) Female (years)
Sources: Delhi Government website (delhigovt.nic.in), Economic Review, 2008-09

Delhi 1,483 9 9,340 13.80 7.60 6.20 47.02 821 81.7 87.3 74.7

67.4 71.1

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STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Delhi November 2010

Delhis GSDP

At current prices, the Gross State Domestic Product (GSDP) of Delhi for 2007-08 was US$ 35.8 billion. Between 1999-2000 and 2007-08, the average annual GSDP growth rate was 14.8 per cent. The growth was driven by the expansion of the services sector. Banking and insurance, real estate, trade, tourism and communications were driving the progress in the sector.

Delhis GSDP (US$ billion)


40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 35.8 CAGR 14.8% 15.6 18.2 20.4 29.8 23.5

11.8 12.4 13.5

Source: CMIE

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STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Delhi November 2010

Delhis NSDP

At current prices The Net State Domestic Product (NSDP) of Delhi was about US$ 32.8 billion in 2007-08. The average NSDP growth rate between 1999-2000 and 2007-08 was about 14.7 per cent.

Delhis NSDP (US$ billion)


40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 32.8 CAGR 14.7% 16.8 18.6 21.4 27.2

11.0 11.5 12.5

14.4

Source: CMIE

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STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Delhi November 2010

The tertiary sector dominates Delhis economy

Delhis economy is dependent on commerce and trade more than on manufacturing and agriculture. In 1996, the Supreme Court of India ordered over 90,000 industrial units to relocate outside the state in order to control increasing levels of pollution. Consequently, the state has small scale industries which are mostly non-polluting. Delhis economy is primarily dominated by knowledge based service industry such as information technology, consulting etc. In 2007-08, at US$ 28.3 billion, the tertiary sector contributed 79 per cent to the GSDP of Delhi at current prices followed by secondary sector which contributed US$ 7.2 billion (20.3 per cent).

Percentage distribution of GSDP


100.0% 80.0% 60.0% 40.0% 20.0% 18.3% 0.0% 1999-00 Primary Sector Source: CMIE Secondary Sector 1.4% 20.3% 2007-08 Tertiary Sector 0.7% 16.3% 5.4% 80.4% 79.0%

CAGR

14.6%

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STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Delhi November 2010

Per capita GSDP

The per capita GSDP of Delhi increased almost 2.4 times from US$ 901 in19992000 to US$ 2,136 in 2007-08. Per capita GSDP recorded CAGR of 11.4 per cent between 1999-2000 and 2007-08.
US$

Per capita GSDP


2,500.0 2,000.0 1,500.0 1,000.0 500.0 0.0
901.1 912.4 957.4 2,136.0

CAGR 11.4%

1,831.0

1,485.3 1,323.7 1,216.2 1,077.3

Source: CMIE

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STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Delhi November 2010

Financial institutions, food processing, ITeS, consulting and tourism sectors drive Delhis economy

The location advantage, policy incentives and infrastructure in the state support investments in sectors such as IT/ITeS, banking and financial services industry (BFSI) and tourism activities. According to the Delhi 2021 Master Plan, sophisticated hi-tech industries will be promoted with special emphasis on high value-added products. The plan emphasises on industrial development without effluents, smoke and noise pollution. According to the Industrial Policy for Delhi, 2010-2021, the Delhi Government will develop world-class infrastructure within planned industrial estates to promote industrial growth. The Government is also encouraging activities allied to industries, such as consultancy, information technology, training of skilled manpower through vocational training programmes and entrepreneurial development programmes.
Source: www.delhiplanning.nic.in

Key industries in Delhi


BFSI IT and ITeS Tourism Food processing Construction and engineering SSI: textiles, handlooms, printing and publishing

SSI: small scale industry

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STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Delhi November 2010

Delhi an important centre for agri-trade in the country (1/2)

Commonly grown crops in the state are wheat, rice, maize, millet, vegetables and fruits. In 2008-09, 34,200 tonnes of potato and 23,500 tonnes of onion were produced. In 2007-08, the total production of rice and wheat in the state was around 98,000 tonnes. The Food Corporation of India (FCI) was setup under the Food Corporations Act, 1964, of the Union Government to meet the objectives of the Food Policy which are as follows:

Crop Rice^ Wheat^ Potato

Annual production (000 tonnes) 23.0 75.0 34.2 23.5

Onion
Source: CMIE , As of 2008-09 ^As of 2007-08

Effective price support for safeguarding the interests of the farmers. Distribution of food grains throughout the country for Public Distribution System (PDS) Maintaining a satisfactory level of operational and buffer stocks of food grains to ensure national food security.

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STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Delhi November 2010

Delhi an important centre for agri-trade in the country (2/2)

Over the years FCI has played an important role in controlling supply, prices and disaster management in times of droughts, etc. The corporation is headquartered in Delhi. The Indian Agricultural Research Institute (IARI), the country's premier national institute for agricultural research, education and expansion, has a centre in Delhi. The Indian Council of Agricultural Research (ICAR), an autonomous organisation under Ministry of Agriculture, Government of India is also headquartered in New Delhi. The institute is the apex body for coordinating, guiding and managing research and education in agriculture including horticulture, fisheries and animal sciences in the country.

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STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Delhi November 2010

Delhis exports trends

In 2007-08, exports from Delhis National Capital Region (NCR) increased 10.2 per cent over the previous year. The annual growth rate was the highest in 2004-05. Some of the key products for exports included food products, electrical and engineering equipment, IT services, telecom equipment, oil and gas, steel products and other minerals and traded products.

Annual exports growth trends * (%)


2007-08 2006-07 2005-06 18.2 56.7 18.2 38.3 19.2 2004-05 2003-04 2002-03 2001-02 10.2 38.6

2000-01
0.0

25.7
10.0 20.0 30.0 40.0 50.0 60.0

* Includes the National Capital Region Source: Capital Market

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STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Delhi November 2010

Investments and FDI inflows

According to the Reserve Bank of India, FDI inflows in the state* from April 2000 to May 2010 amounted to US$ 23.6 billion. Of the total outstanding investments of US$ 24.3 billion as of March 31, 2010, the services sector (excluding financial services) had the highest share of investments at 76.5 per cent. Investments were also made in electricity (9.3 per cent) and construction (12.7 per cent) sectors.
*Includes part of Uttar Pradesh and Haryana Source: Department of Industrial Policy & Promotion

Break up of investments by sectors


0.9% 0.6% 12.7% 9.3% Others Electricity Services Construction Irrigation 76.5%

Services exclude financial services, Electricity includes generation and distribution, Others include food and beverages, non-metallic mineral products, machinery and chemicals Source: CMIE As of March 31, 2010

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DELHI

November 2010

Contents
Advantage Delhi State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Delhi
Company logos cited in this section are registered trademarks of the respective companies

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INFRASTRUCTURE STATUS Delhi November 2010

Road network (1/2)

Delhi has total road length of over 30,985 km, excluding National Highways maintained by National Highways Authority of India (NHAI). About 72 km of National Highways run through the state. The Finance Bills of the last few years have laid increased emphasis on the transport sector. Considering the need for improvement of the facilities, the sector has been receiving significant financial allocation. Outlay for the planned schemes of the Transport Department have increased from US$ 340 million (revised estimate) in 2009-2010 to US$ 445 million (approved) in 2010-11.

Road type Total* National Highways

Length (km) 30,985 72

* Excluding National Highways. Sources: Ministry of Road Transport & Highways, Economic Survey, 2008-09.

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INFRASTRUCTURE STATUS Delhi November 2010

Road network (2/2)

Action has also been taken to implement the Delhi Integrated Multi Modal Transport System (DIMTS). The existing road network is being upgraded and express highways and freeways are being constructed along key routes in Delhi and the NCR. The Golden Quadrilateral project of the National Highway Authority of India (NHAI) directly connects Delhi to other major markets and cities of the country.

Major planned schemes for Delhis road transport Computerisation of records Motor driving training schools Mass rapid transit systems (MRTS) Decongestion of inter-state bus terminals Control of vehicular air pollution Parking facilities Restructuring of Delhi Transport Corporation Incentives for replacement of old light commercial vehicles
Sources: Ministry of Road Transport & Highways, Department of Transport, Government of NCT of Delhi

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INFRASTRUCTURE STATUS Delhi November 2010

Railway network

Delhi is well connected by rail network to other parts of India. A significant part of trade is supported by the strong railway link.

State capitals of India and a few other important cities are connected with Delhi by high-speed, air-conditioned and comfortable Rajdhani Express trains.
There are three main railway stations at: New Delhi, Old Delhi and Hazrat Nizamuddin.
RITES and CONCOR RITES Limited is an enterprise of the Government of India. It was established in 1974, under the aegis of Indian Railways to provide comprehensive engineering, consultancy and project management services in the transport infrastructure sector. The registered office is located in Delhi. Container Corporation of India Limited (CONCOR) is a Government of India enterprise, operating inland transport services, clearance, and cargo handling facilities throughout India.

Old Delhi station New Delhi station

Hazrat Nizamuddin station

Source: Maps of India

Main railway stations of Delhi

Sources: Government of India, Northern Railways website (www.nr.indianrail.gov.in), rites website (www.rites.com), CONCOR website (concorindia.com)

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INFRASTRUCTURE STATUS Delhi November 2010

Airports

The Indira Gandhi International Airport (IGIL), one of the busiest in the world is located about 16 km from the New Delhi city centre. In July, 2010, the terminal 3 of the airport was inaugurated which will enhance the passenger handling capacity of the airport to 60 million passenger annually. The newly operationalised terminal 3 is spread over 500,000 square metre area and is equipped with 95 immigration counters, 168 check in counters and 78 passenger boarding bridges to handle 34 million passengers per annum (mppa) and 12,800 bags per hour. The planned ultimate design capacity of the airport is100 mppa.
Delhi International Airport Limited (DIAL)
Project awarded in May 2006 Constructed by a consortium of: GMR group Fraport Consortium (Fraport & Eraman Malaysia ) Airports Authority of India Terminal 1- Domestic terminal (T1A/T1D Departure, T1C Arrival) Terminal 2- International terminal Terminal 3- International and domestic hub Haj Terminal (for use during Haj season) International Cargo Terminal Total land area available: 5,106 acres

Total passenger traffic: 22.8 million in 2008-09 Total aircraft movement: 230,000 in 2008-09
Total cargo movement: 430,000 tonnes in 2008-09
Sources: www.pppindiadatabase.com, www.newdelhiairport.in

A cargo village is also being developed to make the airport a focus point of cargo movement.

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INFRASTRUCTURE STATUS Delhi November 2010

Delhi metro rail project (1/2)

The Delhi Metro Rail Corporation (DMRC) was registered in 1995 under the Companies Act, 1956, for development of Delhi Mass Rapid Transit System (MRTS). DMRC has equal equity participation from the Government of India and Government of National Capital Territory of Delhi (GNCTD). The objectives of the Delhi metro rail are as follows:

To cover the whole of Delhi with a metro rail network by the year 2021. Delhi metro to be of world-class standards in terms of safety, reliability, punctuality, comfort and customer satisfaction. Delhi metro to operate on commercial lines, obviating the need for government support.

As of August 2010, around 1.3 million commuters travel every day in metro rail operating on five lines, covering 125 km. With operationalisation of all the routes planned in Phase-II, total route length of metro rail will be over 180 km. The airport metro express route, connecting the central business district and Delhi international airport will cover a distance 22 km in 20 minutes.

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INFRASTRUCTURE STATUS Delhi November 2010

Delhi metro rail project (2/2)


Phase-1 network Line Line No 1-Shahdara-Tri Nagar-Rithala Line No 2-Vishwa Vidyalaya-Central Secretariat Line No 3-Indraprastha-Barakhamba Road-Dwarka sub-city Phase-II Network Line Shahdara-Dilshad Garden Length (km) 3.09 No of stations 3 Length (km) 22.0 10.8 32.1 No of stations 18 10 31

Indraprastha-Noida (Sector-32) City Centre


Yamuna Bank-Anand Vihar ISBT Vishwavidyalaya-Jahangir Puri Inderlok-Kirti Nagar-Mundka

15.07
6.17 6.36 18.46

11
5 5 15

Central Secretariat-Sushant Lok (Gurgaon)


Dwarka (Sector-9)-Dwarka (Sector-21) New Delhi-Airport Anand Vihar-KB Vaishali (Ghaziabad) Central Secretariat-Badarpur (Faridabad)
ISBT: inter-state bus terminus Source: DMRC website (www.delhimetrorail.com)

27.45
2.76 19.20 2.57 20.04

19
2 4 2 15

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INFRASTRUCTURE STATUS Delhi November 2010

Power (1/4)

As of March 2010, Delhi had total installed power generation capacity of 4,114.7 MW, which is controlled by the state and central sectors. The total capacity comprised about 63 per cent of coal-based power plants and 20 per cent of gas-based power plants. Besides, electricity supplied to Delhi is also generated from hydro (14 per cent) and nuclear power sources (three per cent). Delhi has one of the highest per capita electricity consumption among the states in India. In 200708, per capita power consumption was 1,615 units.

Installed power capacity (MW)


5,000.0

4,114.7
4,000.0 3,000.0 2,000.0 1,000.0 0.0 2005-06 2006-07 2007-08 2008-09 2009-10 3,425.9 2,765.9 2,689.3 3,677.3

Source: Central Electricity Authority

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INFRASTRUCTURE STATUS Delhi November 2010

Power (2/4)

The Delhi Vidyut Board was set up in 1997 under the Electricity Act, 1948, and it replaced the Delhi Electricity Supply Undertaking.
As privatisation was expected to bring efficiency to Delhi Vidyut Board, it was re-structured and the business of power distribution was transferred to three private companies BSES Yamuna Power Limited (BYPL), BSES Rajdhani Power Limited (BRPL) and North Delhi Power Limited (NDPL). An agreement was signed in May 2002, between the Government of Delhi, BSES and Tata Power, paving the way for privatisation of electricity distribution in the state. BSES acquired a controlling interest in two of the distribution companies, viz., South-West Delhi Electricity Distribution Company Limited and Central-East Delhi Electricity Distribution Company Limited, and the Tata Power Company took management control of the third distribution company, viz., North-Northwest Delhi Distribution Company Limited.

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INFRASTRUCTURE STATUS Delhi November 2010

Power (3/4)
Power distribution in Delhi Segment DISCOM 3 Power generation DISCOM 1 DISCOM 2 Power transmission Name of company Indraprastha Power Generation Co Limited (IPGCL) Pragati Power Limited (PPCL) NTPC Limited Delhi TRANSCO Limited (DTL) BSES Yamuna Power Limited (BYPL) BSES Rajdhani Power Limited (BRPL) Power distribution North Delhi Power Limited (NDPL) New Delhi Municipal Council (NDMC) Military Engineering Services (MES)

Sources: www.delhisldc.org, www.bsesdelhi.com, www.ndpl.com, www.delhitransco.gov.in, www.ndplonline.com, www.ipgcl.com

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INFRASTRUCTURE STATUS Delhi November 2010

Power (4/4)

BYPL distributes power to around 1.15 million customers spread over 200 sq km area in Central and East Delhi.

BRPL distributes power to around 1.53 million customers spread over 750 sq km area in South and West Delhi.
NDPL distributes power to around 5 million customers spread over 510 sq km area in North and Northwest Delhi. While NDMC serves around 70,000 customers in New Delhi area, MES serves 10,000 customers in Delhi cantonment.

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INFRASTRUCTURE STATUS Delhi November 2010

Telecom infrastructure

According to Department of Telecommunications, as on December 2009, the Delhi circle had 26.7 million cellular phone subscribers accounting for 5.1 per cent share of the overall cellular base of the country. As of December 2009, Mahanagar Telephone Nigam Limited (MTNL) provided 2.67 million wire-line connections in Delhi. As on December 2009, tele-density in Delhi was 26.7 per cent, highest in the country. The state had 588,716 broadband subscribers* as of 2008.

Major Telecom operators in Delhi


Bharti Airtel IDEA Cellular Vodafone Essar Mahanagar Telephone Nigam Limited (MTNL) Aircel Limited Reliance Communications Tata Teleservices Limited

Source: Cellular Operators Association of India (COAI)

Telecom infrastructure Cellular subscribers: about 26.7 million Wire-line subscribers: about 2.67 million Internet/broadband subscribers: 588,716
Source: Department of Telecommunications, Annual Report 2009-2010 *Includes Noida, Gurgaon, Ghaziabad and Faridabad.

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INFRASTRUCTURE STATUS Delhi November 2010

Urban infrastructure

Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), total of 27 projects costing US$129.6 million have been sanctioned for Delhi during 2008-09 and 2009-2010. The key projects focus on traffic management plan for designated areas, sewerage system improvement and urban renewal plans along with heritage conservation. According to the Delhi 2021 Master Plan, special emphasis has been laid on improved solid-waste management policies. The short-term goals are: capacity building with respect to financial services and performance management, effecting trial runs of collection and waste-reduction schemes, developing transport, land-fill sites and transfer stations for waste and focussing on bio-medical and hazardous waste management programme. With respect to traffic management, the focus in the master plan is on developing integrated multimodal transport system, creating infrastructure for alternate transport, e.g., bicycles, creating an environment for public transport prioritisation by customers and improving suburban railway with technology upgrade. For the Commonwealth Games held in October, 2010, projects worth US$ 5.9 billion were taken up to develop infrastructure, which included developing stadiums, houses, bus depots, street scrapping, extension of metro railway services and augmentation of bus services.
Sources: JNNURM, Ministry of Urban Development, delhiplanning.nic.in

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INFRASTRUCTURE STATUS Delhi November 2010

Key public private partnership projects


Project name Modernisation of Delhi International Airport Development of Delhi International Centre near Andhra Bhavan, New Delhi Delhi-Gurgaon highway Sector Airports Urban development Roads PPP type LDOT DBFOT BOT-toll

Project cost (US$ million)


1,869.6 231.3 154.3

Stage

Under construction
Planned In operation

Delhi-Noida Toll Bridge


Badarpur elevated highways

Roads
Roads

BOOT
BOT-toll BOOT

88.7
73.9 14.1

In operation
In operation In operation

Integrated municipal waste processing complex at NDMC Urban development compost plant site, Okhla

Construction of 197 Bus-Q-Shelters in NDMC area


Development of integrated multi-level parking infrastructure at three sites in the NDMC area Centralised waste treatment facility at Ghazipur Centralised biomedical waste treatment facilities, Okhla

Urban development
Urban development Urban development Urban development

BOOT
BOOT N.A. BOT-annuity

3.3
1.7 1.3 0.2

In operation
In operation In operation In operation

LDOT: Lease-develop-operate-transfer, DBFOT: Design-build-finance-operate-transfer, BOT: Build-operate-transfer, BOOT: Build-own-operatetransfer, EOI: Expression of interest N.A.: Not available Source: pppindiadatabase.com

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INFRASTRUCTURE STATUS Delhi November 2010

Education sector (1/2)

Delhi had a literacy rate of 81.7 per cent as against the national average of 65 per cent as per the Census 2001. In 2001, the male literacy rate stood at 87.3 per cent, while female literacy was at 74.7 per cent. During 1991-2001, male and female literacy rates have improved by 5.36 per cent and 8.01 per cent, respectively. The gap between male and female literacy rates also has come down from 15.02 per cent (in 1991) to 12.37 per cent in 2001. As of 2007-08, there were 51 pre-primary schools, 2,569 primary schools, 643 middle level schools and 1,759 senior secondary/secondary schools in Delhi. State Governments spending on education has increased from US$ 162 million in 2007-08 to US$ 217.8 million in 2008-09, accounting for 10.3 per cent of plan expenditure.

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INFRASTRUCTURE STATUS Delhi November 2010

Education sector (2/2)

At the intermediate college level, courses in the science, arts and commerce streams are offered. Vocational courses are offered in the fields of agriculture, engineering and technology, home science, paramedical, business and commerce, and humanities.
Higher education in Delhi

Recognised universities

Delhi University Jawaharlal Nehru University Jamia Millia Islamia University Guru Gobind Singh Indraprastha University Indira Gandhi National Open University

No of universities-5 Deemed universities-10 Institutes of national importance-2 Colleges for general education-78

Source: Directorate of Higher Education, Government of NCT of Delhi

Leading professional and degree colleges


Indian Institute of Technology Delhi (IIT Delhi) Netaji Subhas Institute of Technology

Only boys-1

Delhi College of Engineering


All India Institute of Medical Sciences (AIIMS) Lady Shri Ram College for Women Delhi School of Economics St Stephen's College Indian Institute of Mass Communication

Only girls-20
Co-educational-57

Colleges for professional education-88


Only girls-2 Co-educational-86

Source: Statistical Abstract, Directorate of Higher Education, Government of NCT of Delhi

Indian Statistical Institute

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INFRASTRUCTURE STATUS Delhi November 2010

Health infrastructure

As of March 2008, there were 724 medical institutions in Delhi with a total of 36,352 beds. As of March 2008, there were 2,140 beds in medical institutions per million populations of Delhi. Delhi has a number of Super Specialty Hospitals both in the public and private sectors.

Leading hospitals in Delhi

All India Institute of Medical Sciences (AIIMS)


Hindu Rao Hospital Dr Ram Manohar Lohia G. B. Pant Hospital

Moolchand Hospital National Chest Institute National Heart Institute

Health indicators Birth rate* Death rate* Infant mortality rate** 18.4 4.8 35

Rajiv Gandhi Cancer Institute & Research


Safdarjung Hospital Deen Dayal Hospital Guru Teg Bahadur Hospital Leading private hospitals in Delhi Batra Hospital Indraprastha Apollo Hospitals Escorts Heart Institute and Research Centre Fortis Hospital

*Per thousand persons ** Per thousand live births Sources: Economic survey, 2008-09, Ministry of Health & Family Welfare

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INFRASTRUCTURE STATUS Delhi November 2010

Cultural infrastructure

Delhis rich history is reflected in its forts, monuments, palaces, gardens and bazaars that were created by its rulers during the different periods of their occupation. The remains of a large number of such historical places and monuments are the sites of attraction for visitors and tourists in Delhi. In addition to these historical places, a large number of gardens, buildings, playgrounds, institutional buildings, markets and event places were constructed by the British till1947 and thereafter by the Government of India and Government of Delhi. In addition, Delhi and the NCR have number of convention centres, golf courses, hotels, restaurants, and recreational centres offering international standard of services.

Key cultural destinations in Delhi Purana Quila Qutub Minar Tughlakabad Fort

Red Fort
Humayun Tomb Safdarjung Tomb Jama Masjid Rashtripati Bhawan, Sansad Bhawan,Central Secretariat India Gate Lodhi Garden, Nehru Park, Buddha Jayanti Park Connaught Place

Lotus Temple

Akshardham Temple

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INFRASTRUCTURE STATUS Delhi November 2010

Cultural infrastructure Commonwealth Games 2010 (1/2)


Delhi was the host city for Commonwealth Games 2010. For its successful organisation, the State Government had taken up 59 projects/schemes directly related to games. Some of the major projects/schemes were as follows:

Construction of Tyagraja stadium. Renovation and expansion of the Talkatora, Shivaji and Chhattrasal stadiums. Construction of a training indoor stadium at Ludlo Castle. Construction of water treatment plant and sewerage-water treatment plant at the games village. A polyclinic will also be established at the games village, in addition to medical centres at each location. IT system for commissioning a dedicated communication network system.

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INFRASTRUCTURE STATUS Delhi November 2010

Cultural infrastructure Commonwealth Games 2010 (2/2)


Commonwealth Games, 2010 Motto: COME OUT and PLAY Participating nations: 72 Events across disciplines: 17 Aquatics, Archery, Athletics, Badminton, Boxing, Cycling, Gymnastics, Hockey, Lawn bowls, Net ball, Rugby, Shooting, Squash, Table Tennis, Tennis, Weightlifting, Wrestling Opening ceremony: October 03, 2010 Closing ceremony: October 14, 2010
Source: www.cwgdelhi2010.org Source: www.cwgdelhi2010.org

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INFRASTRUCTURE STATUS Delhi November 2010

Industrial clusters (1/2)

On the industrial infrastructure front, the State has taken a number of development initiatives such as re-development of industrial clusters, maintenance of industrial areas under PPP model. The State Government has initiated a set of prestigious projects including those in industrial infrastructure for the specific sectors, through the Delhi State Industrial and Infrastructure Corporation Limited (DSIIDC).

Narela Industrial Complex DSIIDC has developed 612 acres of land in the Narela region. The first phase of construction of 1,800 plots is over. The construction of facility centres, providing shops and commercial spaces have already been completed. About 50,000 trees have been planted in the complex. An area of 10 acres covered under the central park is proposed to be developed as central plaza. Of the remaining land available in the estate, 70 acres is proposed to be utilised for relocation of industries. There is also a proposal for construction of a high-tech estate for ITeS in an area of 50 acres available in the complex.
PPP: Public private partnership. Source: dsidc.org

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INFRASTRUCTURE STATUS Delhi November 2010

Industrial clusters (2/2)


Major industrial areas in Delhi Kirtinagar Industrial Area: Kirtinagar Industrial Area is located in Western part of Delhi and has been developed by the DSIIDC. Mangolpuri Industrial Area: Mangolpuri Industrial Area is located in Western part of Delhi and has been developed by the DSIIDC. Naraina Industrial Area: Naraina Industrial Area is located in Northern part of Delhi. It was set up by the Delhi Development Authority (DDA) in 1970. It occupies a place of pride among the industrial estates in Delhi and is divided into two phases with around 1,200 industrial units, which manufacture electronic and electrical goods, engineering goods, plastic goods, readymade garments and sanitary fittings. Okhla Industrial Area: Okhla Industrial Area is located in Southern part of Delhi and is hub of industrial activity. Many export houses are located in the area along with some of the multinationals such as Oriflame, Reckitt Benckiser etc. Bawana Industrial Area: Bawana Industrial Area is located in Northern part of Delhi, where DSIDC will develop 15,250 plots of 100-250 square metre each.
Source: dsidc.org

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INFRASTRUCTURE STATUS Delhi November 2010

IT park, Shastri park

The Delhi Metro Rail Corporation Limited (DMRC) has conceptualised and developed a world-class IT park complex comprising IT Park Block-1 (operational), IT Park Block-2, which is ready for occupancy and IT Park Block-3 (yet to be constructed). The complex is situated very close to Shastri Park metro station.
IT Park Block-1 has got the distinction of being 'Delhi's First IT Park'. It is a fully air-conditioned building, equipped with several facilities and state-of-the-art technical systems. This building has been in operation since April 2005. IT Park Block-2 is an improved version of IT Park Block-1. Additionally, it is technologically advanced and is also National Buildings Code, 2005, compliant.

Upcoming SEZ at Baprola SEZ for IT and ITeS: The IT and ITeS SEZ is being set up in an area of 26 acres at an estimated cost of US$ 85.8 million. The SEZ is expected to provide direct employment to 36,000 people while generating 108,000 jobs, indirectly. The IT SEZ will also house convention halls, hotels, a hospital and residential accommodation. SEZ for Gems and jewellery: It is being set up in an area of 41.4 acres at an estimated cost of US$ 106 million. The SEZ is expected to provide direct jobs to 18,000 people and indirect employment to 54,000 people.

Sources: www.delhimetrorail.com, industry sources

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INFRASTRUCTURE STATUS Delhi November 2010

SEZs and industrial clusters


SEZs Industrial clusters in Delhi
Narela Industrial Complex IT and ITeS SEZBaprola Bawana Industrial Area Kirtinagar Industrial Area Gems and Jewellery SEZ-Baprola Mangolpuri Industrial Area

Naraina Industrial Area IT Park, Shastri Prak, DMRC INDEX


SEZ Location Industrial Area Location

Operational Upcoming

Okhla Industrial Area

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INFRASTRUCTURE STATUS Delhi November 2010

Infrastructure investments

As of March 2010, infrastructure investments in Delhi were over US$ 8.9 billion.

Infrastructure type

Investments (US$ million) 1,249.6 1,029.8 4,511.2 2,154.6 8,945.4

Over 74 per cent of investments in infrastructure were in the area of railways and airports.
About 14 per cent of the investments were in the power sector, while another 12 per cent were in the road transport sector.

Power*
Roads Railways Airport Total
*Generation and distribution Source: CMIE As of March 2010

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DELHI

November 2010

Contents
Advantage Delhi State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Delhi

46

STATE POLICIES AND INCENTIVES Delhi November 2010

Sector-specific policies (1/6)


Industrial Policy for Delhi, 2010-2021
Aim: The Industrial Policy for Delhi, 2010-2021 aims to make Delhi a hub of clean, high-technology and skilled economic activities by 2021 by adhering to the following basic principles:

Infrastructure development De-congestion Promoting walk to work Simplifying business Industry consultation in decision making Sustainability

Key objectives:

Promote non-polluting and clean industries. Promote high-technology and skilled industries in Delhi, to keep in-migration of unskilled labour to minimum. Develop world-class infrastructure within planned industrial estates and regularised industrial clusters. Promote cluster approach and walk to work concepts, wherever possible. Facilitate business through procedural simplification and e-governance measures. Promote transparent and business-friendly environment.

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STATE POLICIES AND INCENTIVES Delhi November 2010

Sector-specific policies (2/6)


Industrial Policy for Delhi, 2010-2021 (continued) Promotional measures:

Classification: Based on requirement of land and infrastructure, knowledge-intensity and clean nature of operations, activities such as IT and ITeS, educational services, business and financial services, media, research and development, design and biotechnology are classified as knowledge-based industry (KBI). Businesses classified as KBI will be allowed to operate in industrial and commercial areas. Handicrafts, handlooms and khadi: Handicrafts, handlooms and khadi industries will be preserved and infusion of modern technologies will be encouraged. To enhance linkages of these industries with fashion and interior design industry, handicrafts, handlooms and khadi industries can be set up in the proposed fashion technology and design park. Skill development: Skill development of the workforce will be encouraged. Department of Training and Technical Education (DTTE) will be the nodal body for promoting skill development.

Promote industry-academia linkage, innovation and entrepreneurship: Industry-academia relationship with renowned educational and research institutes will be promoted through award and recognition. DTTE along with Department of Industries will involve industry associations to explore opportunities in industry-academia collaborations. A centre of excellence will be established for guiding entrepreneurs on quality related matters.
Trade and commerce: Recognising the interlink among trade, commerce and industry and in order to maintain balance between the commercial and industrial aspects of economic activity, commerce will be brought under Department of Industries and the same will be named as Department of Commerce and Industry.

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STATE POLICIES AND INCENTIVES Delhi November 2010

Sector-specific policies (3/6)


Industrial Policy for Delhi, 2010-2021 (continued) Industrial asset management and development: Land Bank: Government of Delhi may create a land bank which will comprise land acquired by Government of Delhi or its nominated agency for industrial and economic development of Delhi. Infrastructure development in industrial areas: To finance industrial development, it has been proposed to set up an Industrial Development O&M Fund (IDOF). The IDOF can be a handy tool for the Department of Industries to fund its development activities such as operations and maintenance of industrial estates, funding infrastructure creation, cluster development and re-development. Redevelopment: The Delhi Government will push for guidelines on development of industrial areas through land amalgamation and link it to Transfer of Development Rights (TDR) mechanism. Cluster development: Recognising advantages of clusters, where units from similar sectors congregate, cluster approach will be encouraged for new industrial areas. Private participation will be promoted for developing specialised industrial parks or special economic zones. Relocation and phasing out of polluting units: As per relocation scheme, in April 1996, total of 27,905 units were declared eligible for plots/flats at Bawana, Jhilmil, Narela, Badli and Patparganj. Industrial waste management: After technical assessment, Government of Delhi will take steps to ensure effective functioning of common effluent treatment plants (CETP) and facilitate waste disposal as per statutory provisions.

Simplifying business: Procedural simplification: A business facilitation council (BFC) will be formed which will provide all clearances for setting up business within specified time frame. Business facilitation mission: On efficient implementation, the business facilitation mission will be able to resolve the issue of multiplicity to a large extent and links to all clearances and payment gateways will be available at one place.

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STATE POLICIES AND INCENTIVES Delhi November 2010

Sector-specific policies (4/6)


Transport Policy, 2002 Objectives: This policy has been framed with a view to provide safe, eco-friendly, cost-effective and efficient modes of transportation through a well integrated multi-modal transport system. The policy aims to make Delhi a well-managed, clean and dynamic city, which is involved in serving its citizens efficiently. Key initiatives:

Reduce traffic congestion on roads. Improve air quality by lower levels of vehicular pollution. Enhance road safety while improving amenities for commuters. Augment mass transport by massive investments accompanied by institutional improvements. Provide adequate, accessible and affordable modes such as buses, mini buses, electric trolley buses complemented by a network of rail-based mass rapid transit systems, etc.

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STATE POLICIES AND INCENTIVES Delhi November 2010

Sector-specific policies (5/6)


Information Technology Policy, 2000 Aim: The IT policy is governed by six Es: electronic-governance, equality, education, employment, entrepreneurship and economy. The policy aims to promote these six goals in an integrated and parallel fashion for the overall development of information, communication technology in the state in terms of infrastructure and usage. Objectives:

E-governance: To use e-governance as a tool and deliver a government that is more proactive and responsive to its citizens. Equality: To use the power of IT to achieve the objectives of eradicating poverty, improving healthcare, empowering women and economically weaker sections of the society. Education: To encourage the use of IT in schools, colleges and educational institutions in the state so as to enable the students to improve their skills, knowledge and job prospects and enable them to obtain employment in this sunrise industry. Employment: To use IT for generating additional employment for the new digital economy. Entrepreneurship: To unleash the Delhi incubation engine, promote entrepreneurship, earn foreign exchange, and increase contribution of IT to economic growth of the state. Economy: To encourage and accelerate investments and growth in IT hardware, software, internet, training, IT enabled services, telecom, e-commerce and related sectors in the state.

To use IT effectively in industries to make them competitive and web-enabled.


To provide adequate infrastructure in the state so that IT sector can flourish. To use IT for ushering world-class e-tourism in the state.

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STATE POLICIES AND INCENTIVES Delhi November 2010

Sector-specific policies (6/6)


Information Technology Policy, 2000 (continued)
Incentives:

Zero sales tax*: The government is in favour of zero sales tax on the transactions of various IT related hardware and software, such as Sale and leasing of computers and its accessories.

Inter-state sales of computers, parts, accessories and computer consumables. CD-ROMS, optical disc media or magnetic media containing text, data or multimedia.

IT industries in residential area:The State Government shall strongly recommend to the Government of India to permit software and service units to function in residential areas subject to such reasonable restrictions as may be imposed by the government in public interest. IT software and service industry is entitled to industry status, which facilitates easy loans and financing at industry rates. The industry units will be exempted from routine checks and they have facility for self-certification. They have been given permission for a three-shift operation. The government will establish modern IT parks in collaboration with private sector. The parks will have high-speed telecom facility and plug and play built-up modules for minimising gestation period of new projects. Establishing incubation centre: The State Government will set up an incubation centre that will guide entrepreneurs to make business plans, advise on mergers and acquisitions, and network with venture capital companies including the Venture Capital Fund Company to be created by the Government of Delhi. The Centre will also undertake financing of small IT companies.

*However, in keeping with the ruling of a uniform sales tax in all states, the government shall fix the sales tax on hardware and software not above the agreed uniform floor rate (UFR). The State Government, however, lobbies for zero sales tax on all IT products along with other states and Central Government.

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DELHI

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Contents
Advantage Delhi State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Delhi
Company logos cited in this section are registered trademarks of the respective companies

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BUSINESS OPPORTUNITIES Delhi November 2010

Banking and financial services sector

The city is home to a number of private and public banks and financial services institutions. These business houses deal in banking transactions, documentations, negotiations, loan agreements, etc. The city also has commercial banks, industrial banks and some of the leading foreign banks. The service points are spread across the city while the Connaught Place, Chandni Chowk, Barakhamba Road are the key points in the city where key offices of a large number of organisations are located.

Key players Reliance Life Insurance Life Insurance Corporation of India Travelex State Bank of India United Bank of India The Royal Bank of Scotland N.V. (RBS) Bank of America Deutsche Bank HSBC Bank CITIBANK Standard Chartered Bank BNP Paribas Power Finance Corporation

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BUSINESS OPPORTUNITIES Delhi November 2010

BFSI company profiles (1/4)


Reliance Life Insurance

Reliance Life Insurance is an associate company of Reliance Capital Limited, a part of Reliance-Anil Dhirubhai Ambani Group.

Reliance Capital is one of Indias leading private sector financial services companies and ranks among the top private sector financial services and banking companies, in terms of net worth. It has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services.
In Delhi the insurance company has branches located at Asaf Ali Road, Chandni Chowk, Janakpuri, Najafgarh, Narela, Rohini and Sohna. The Life Insurance Corporation of India (LIC) is the largest life insurance company in India. It was founded in 1956 and it is also the country's largest investor. It is fully owned by the Government of India. It has assets of an estimated US$ 211 billion. Headquartered in Mumbai, the Life Insurance Corporation of India has eight zonal offices and 100 divisional offices located in different parts of India, at least 2,048 branches located in different cities and towns of India along with satellite offices attached to about 50 branches, and has a network of around one million agents for soliciting life insurance business from the public. It has Northern region headquarters at Connaught Place in Delhi. Travelex is the worlds largest non-bank provider of commercial cross-border payment services. It is the worlds largest retail foreign exchange specialist, with over 700 branded retail branches, principally in airports and tourist locations. The business also provides outsourced travel money services by supplying foreign currency to financial institutions and travel agencies, as well as by fulfilling the individual orders of their customers. It has two offices at the Delhi international airport.

Life Insurance Corporation of India

Travelex

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BUSINESS OPPORTUNITIES Delhi November 2010

BFSI company profiles (2/4)


State Bank of India

The State Bank of India is the countrys oldest bank and largest in terms of balance sheet size, number of branches, market capitalisation and profits. The bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500 list. The bank also provides complete payment solutions to its clientele with its over 22,000 automated teller machines (ATM) and other electronic channels such as Internet banking, debit cards and mobile banking. The bank is entering into many new businesses with strategic tie ups pension funds, general insurance, custodial services, private equity, mobile banking, point-of-sale merchant acquisition, advisory services, structured products. In Delhi, it has branches located at Najafgarh Village, AGCR Building, Ajmal Khan Road, Anaj Mandi Shahdara, Anand Vihar, Ansari Naagr, Asaf Ali Road, Ashok Vihar and Asian Games Village. United Bank of India (UBI) is one of the 14 major banks which were nationalised in July 1969. Its predecessor, the United Bank of India Limited was formed in 1950 with the amalgamation of four banks, viz., Comilla Banking Corporation Limited (1914), Bengal Central Bank Limited (1918), Comilla Union Bank Limited (1922) and Hooghly Bank Limited (1932). The bank has 1,484 branches. In Delhi, the bank has branches located in Aruna Asaf Ali Road, Chandni Chowk, Chittranjan Park, Connuaght Circus, Daryaganj, etc.

United Bank of India

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BUSINESS OPPORTUNITIES Delhi November 2010

BFSI company profiles (3/4)


The Royal Bank of Scotland N.V. (RBS)

Starting operations 300 years back, The Royal Bank of Scotland Group has grown to become one of the leading financial services firms in the world. RBS has strengthened its India operations by buying ABN AMRO, a Dutch bank. The bank offers a range of transaction banking, fixed income and foreign exchange products and services, personal loans, credit cards, savings accounts, financial planning, investment and insurance services in India. In Delhi, the bank has branches located at Barakhamba Road, Hauz Khas, Greater Kailash, Rajouri Garden, etc. The Indian branch of the Bank of America was started in 1960 in Hyderabad and the bank added four more branches by 1999. The business processes of bank are handled in Hyderabad, Mumbai and Gurgaon. The major divisions of the bank are corporate banking, consumer banking, investment management and international operations. The bank has presence in Asia, Europe, Middle East, Africa, Latin America, the US and Canada. The bank has offices in Delhi in central locations such as Connaught Place. Deutsche Bank AG is a leading global investment bank and was established in India in 1980. The bank launched its retail banking service in India in October 2005, followed by the launch of credit card services in July 2006. Deutsche Bank India employs more than 4,000 people and has branches in several cities of India, including New Delhi, Mumbai, Chennai and Kolkata. Hongkong Shanghai Banking Corporation Limited (HSBC Bank), is a fully owned subsidiary of the HSBC Group. The bank provides a comprehensive range of services such as private banking, commercial banking, personal financial services, corporate and investment banking. The HSBC group has more than 9,000 offices in about 86 countries across the world. It has several branches in Delhi.

Bank of America

Deutsche Bank

HSBC Bank

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BUSINESS OPPORTUNITIES Delhi November 2010

BFSI company profiles (4/4)


CITIBANK

Citibank was established in India in the year 1902 with its head office located in Mumbai. Citibank India has carved a niche for itself in the area of providing top-notch consumer finance lending services. In Delhi, it has branches in Punjabi Bagh, Vasant Vihar, South Extension, Nehru Place, Connaught Circus, etc. The Standard Chartered Bank is one of the leading banks and has its branches spread all over the world. A majority of the profit earned by the bank comes from its business operations related to wholesale and consumer banking in Asia, Africa and Middle-East countries. In Delhi, it has branches located in Barakhamba Road, Connaught Place, Chanakyapuri, South Extension, Friends Colony, Greater Kailash, Preet Vihar and Karol Bagh. Present across Europe through all its business lines, the group has four domestic retail banking markets in France, Italy, Belgium and Luxembourg. It has a large international network with operations in 84 countries and 201,100 employees, including 158,800 in Europe, 15,100 in North America and 10,600 in Asia. In Delhi, it has a branch located at Barakhamba Road. PFC was set up in July 1986 as a financial institution dedicated to power sector financing and committed to the integrated development of the power and associated sectors. It was registered as a non-banking finance company by the Reserve Bank of India and conferred the navratna status by the Government of India in June 2007. The company provides services such as project term loan, lease financing, direct discounting of bills, short term loans and consultancy services for various power projects in generation, transmission and distribution sectors as well as for renovation and modernisation of existing power projects. Ministry of Power, Central Electricity Authority and PFC are working together to facilitate development of ultra mega power projects with capacity of about 4,000 MW each under tariff-based competitive bidding route. The company is headquartered in New Delhi.

Standard Chartered Bank

BNP Paribas

Power Finance Corporation (PFC)

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BUSINESS OPPORTUNITIES Delhi November 2010

Agri and processed food sector

The city has a number of agriculture trading markets and food processing industries. It acts as a nodal location for exchange of goods with Northern parts of the country because of good connectivity and supporting infrastructure. There are nine principal markets and 12 different submarkets for trade of agricultural produce in Delhi. The main food trade markets are located in Narela, Azadpur, Tikri Kalan, Shahdara, Bagh Diwar, Keshopur, Gazipur, Najafgarh and Mehrauli

Key players Ministry of Food Processing Industries (MoFPI)

National Agricultural Cooperative Marketing Federation of India Limited (NAFED) The Agricultural and Processed Food Products Export Development Authority (APEDA) All India Food Processors' Association (AIFPA)

Key companies

Mother Dairy Kohinoor Foods Limited Shakti Bhog Hind Agro Industries Allanasons Limited

Sterling Agro Industries Limited

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BUSINESS OPPORTUNITIES Delhi November 2010

Agri and processed food sector enabling organisations


Ministry of Food Processing Industries (MoFPI)

The Ministry of Food Processing Industries, set up in July 1988, is the central agency of the Central Government, responsible for developing a strong and vibrant food processing sector in the country with a view to create increased job opportunities in rural areas, enable farmers to reap benefit from modern technology, create surplus for exports and stimulate demand for processed food. The MOFPI centre is in the Panchsheel Bhavan located on August Kranti Marg. National Agricultural Cooperative Marketing Federation of India Limited (NAFED) was established in October 1958 and was registered under the Multi-state Cooperative Societies Act. NAFED was set up with the objective of promoting cooperative marketing of agricultural produce to benefit the farmers. Agricultural farmers are the main members of NAFED and they have participative authority. NAFED is headquartered in New Delhi. The Agricultural and Processed Food Products Export Development Authority (APEDA) was established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the Parliament. APEDA is mandated with the responsibility of export promotion and development of the products such as fruits, vegetables and related products, meat and products, confectionery, dairy products, etc. The main office of APEDA is located near Siri Fort auditorium in New Delhi. All India Food Processors' Association (AIFPA) was established in 1943 by food processors in India, involved in the processing of fruits and vegetables, meat and fish, milk and milk products and also the manufacturers of biscuit and confectionery products, ready-to-serve beverage and ethnic delicacies, etc. Member industries account for a large percentage of the total production and exports of this industry. AIFPA has its main office located in Delhi.

National Agricultural Cooperative Marketing Federation of India Limited (NAFED) The Agricultural and Processed Food Products Export Development Authority (APEDA)

All India Food Processors' Association (AIFPA)

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BUSINESS OPPORTUNITIES Delhi November 2010

Agri and processed food sector company profiles (1/2)


Mother Dairy

Mother Dairy was set up in 1974 under the Operation Flood Programme. It is now a wholly-owned company of the National Dairy Development Board (NDDB). Mother Dairy markets and sells dairy products such as liquid milk, curd, ice creams, cheese and butter under the Mother Dairy brand, the Dhara range of edible oils and the Safal range of fresh fruits and vegetables, frozen vegetables and fruit juices, at the national level, through its sales and distribution networks for marketing food items. Mother Dairy milk has a market share of around 66 per cent in the branded sector in Delhi where it sells 2.3 million liters of milk, daily and undertakes its marketing operations through around 14,000 retail outlets and 845 exclusive outlets of Mother Dairy. Further, the ice cream brand of the company has around 62 per cent market share in Delhi. The production plant of the company is located in Patparganj. It also has a distribution facility with an annual handling capacity of 200,000 tonnes. It offers an extensive range of products that caters to all kinds of consumers in different parts of the world - from basmati rice, ready-to-eat products, cook-in sauces and cooking pastes to spices, seasonings and frozen food. It has a strong market presence not only in India but also in the US, the UK, Dubai, Canada, Japan, Australia, Singapore and other European countries. It has an office in Greater Kailash in New Delhi. In 2009-2010, total revenue of the company was US$ 163 million. Shakti Bhog Foods Limited (SBFL), incorporated in 1992, was a pioneer in branding and packaging a daily use product such as wheat flour. It has now entered into other daily use consumption product segments such as basmati and general rice, pulses and beans, corn flour, mustard oil, pickles, salt and porridge. It has a production facility on the GT-Karnal Road, Delhi. The company has one of the largest flour mills in Asia with capacity of 3,000 tonnes.

Kohinoor Foods Limited

Shakti Bhog

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BUSINESS OPPORTUNITIES Delhi November 2010

Agri and processed food sector company profiles (2/2)


Hind Agro Industries

Hind Agro Industries Limited has Asias most modern abattoir-cum-meat processing plant at Aligarh in Uttar Pradesh. It is a joint venture of Hind Industries Limited, the Government of Uttar Pradesh and assisted by Government of India. The company has production capacity of 400 tonnes certified by APEDA and has a corporate office located in Okhla Industrial Area, New Delhi. Allanasons is India's leading exporter of processed food products and agro commodities. The company has been designated as a five star trading house by the Government of India. It is the world's leading producer and exporter of frozen halal boneless buffalo meat.

Allanasons Limited

The group has made substantial investments in creating world-class integrated food processing complexes. Its facilities have been certified for quality and product safety systems under ISO 9001:2000, HACCP and ISO 14001 (Environment Management System), etc. The company has an office in Scindia House, Connaught Circus, New Delhi.
Sterling Agro Industries markets its dairy products under its brands NOVA and A-ONE. The companys office in Delhi is located at Pitampura. In 2008-09, total turnover of the company was US$ 154 million.

Sterling Agro Industries Limited

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BUSINESS OPPORTUNITIES Delhi November 2010

Construction and real estate sector

There are several infrastructure development companies located in the state. These companies are involved in construction of residential and commercial complexes, townships, power projects, hospitals, hotels, schools, roads and public utility infrastructure.
DLF

Key companies

Unitech
Parsavnath Developers Ansal API BL Kashyap Jaypee Group

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BUSINESS OPPORTUNITIES Delhi November 2010

Construction and real estate company profiles (1/3)


DLF

DLF is primarily a real estate developer, rated as India's largest construction company in the sector. DLF has been in this industry for over 60 years, and has developed homes, offices, malls, SEZs, hotels and infrastructure projects. DLF started off with initial venture in New Delhi (Qutub Enclave) and then proceeded to build the Gurgaon township. Now, it has a pan-India presence, with its properties being developed at almost all the Tier I and II cities of India. In Delhi, in the commercial sector, DLF has built infrastructure in Vasant Kunj, Saket, Vasant Vihar. It has also developed some office spaces. Corporate office of the company is located in Delhi. In 2008-09, total revenue of the company was US$ 615 million. Unitech started in 1972. The company has ventured into constructing power transmission lines, highways, theme parks, steel plants, residential dwellings, indoor stadiums and hotels. In Delhi, Unitechs noteworthy achievements include the Rohini amusement park, which is spread over 62 acres in Northwest Delhi. The project encompasses a shopping mall, Metrowalk, spread across 221,000 sq ft, an adventure island, a world class amusement park and a water park. Registered office of the company is located in Delhi. In 2009, total revenue of the company was US$ 386 million.

Unitech

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BUSINESS OPPORTUNITIES Delhi November 2010

Construction and real estate company profiles (2/3)


Parsavanath Developers

Parsvnath Developers Limited is one of Indias leading real estate developers, with pan-India presence across 45 cities in 16 states. Parsvnath Developers Limited has a diversified portfolio which includes, integrated townships, group housing, commercial complexes, hotels, IT parks, build-operate-transfer (BOT) projects, SEZs and third-party contracting. The company has 95 ongoing projects and a total developable area of over 194 million square feet across all real state verticals. Parsvnath Developers Limited is an ISO 9001, 14001 and OHSAS 18001 certified company. It is developing La Tropicana near Civil Lines on Magazine Road in North Delhi. It is spread over 16.8 acres and offers premium luxury for the occupants. Parsvnath Paramount is a super luxury air-conditioned residential area planned at Subash Nagar near Rajouri Garden and built on the same lines as La Tropicana. The company is developing eight shopping malls in Delhi on build-operate-transfer (BOT) basis along with Delhi Metro Rail Corporation. One of the oldest real estate developer companies in the NCR, Ansal API has ventured in to retail shopping malls, township development, hotels, clubs, facilities management, etc. The company has completed several residential buildings like Gauri Sadan, Upasana at Hailey Road and Dhawan Deep on the Jantar Mantar Road at Connaught Place in New Delhi.

Ansal API

The company has also constructed the Ansal Plaza shopping mall in South Delhi, apart from several landmark high-rise commercial buildings such as the Statesman House, etc.

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BUSINESS OPPORTUNITIES Delhi November 2010

Construction and real estate company profiles (3/3)


BL Kashyap

Established in 1978, it is one of the most respected construction and infrastructure development companies with a pan-India presence. The companys service portfolio extends across the construction of factories and manufacturing facilities, IT campuses, commercial and residential complexes, malls and hotels. The corporate office is located on Mathura Road, New Delhi. The Jaypee Group is a well diversified infrastructure and industrial conglomerate in India. It has diversified along various businesses such as engineering and construction, cement, private hydropower, hospitality, real estate development, expressways and highways. In Delhi, the group has constructed and operates luxury hotels, the Jaypee Vasant Continental and the Jaypee Siddharth.

Jaypee Group

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BUSINESS OPPORTUNITIES Delhi November 2010

IT, ITeS and other knowledge-based industries

There are a number of software companies in Delhi. These organisations are involved in the businesses of Enterprise Resource Planning (ERP), Structured Query Language (SQL) server, document management system, Customer Relationship Management (CRM), software development, Active Server Pages (ASP), web developer, online office automation, etc. E-commerce companies in Delhi offer services such as registrations of domain names, tele-billing, electronic signatures, web hosting, etc. The units are spread across the state. With Government focussing on the sector, the prospects are very bright for IT related businesses and other knowledge-based industries such as consulting. Well known companies established in Delhi are Softwell, MetaOption, Mindextend Technologies Private Limited, Netsity Systems, NextGen IT Solutions Private Limited, One Earth Infotech, etc. NASSCOM, the premier trade body and the chamber of commerce of the IT and BPO industry in India is headquartered in New Delhi. The members of the association account for over 95 per cent of the industry revenue and employ over 2.24 million professionals. Enabling institutions such as Software Technology Parks of India (STPI), a society set up by the Ministry of Information Technology, Government of India for encouraging, promoting and boosting software exports from India is also located in New Delhi.

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BUSINESS OPPORTUNITIES Delhi November 2010

Key industrial projects being executed


Project New Delhi-Agra expressway Road project Delhi metro rail project, phase-II Delhi international airport (modernisation) Bawana power project (Pragati-III) Safdarjung hospital (New Delhi) project redevelopment Road upgradation (UP link Road) project Elevated Road (Barapulla nalla) project - package II Dayabasti grade separator railway project Indoor stadium (Delhi) project (up-gradation) Institute of Medicine (Najafgarh) project Hospital (Delhi) project Sector Roadways Railways Promoter Investment (US$ million) 2,117.1 1,934.7 1,173.9 1,129.3 869.5 62.9 40.9 23.0 22.6 22.1 21.7 Location Delhi-Agra Delhi

Airport
Gas-based power Healthcare Roadways Roadways Railways Tourism and recreation Hospitals Hospitals Tourism and recreation

Yamuna Expressway Industrial Development Authority Delhi Metro Rail Corporation Delhi International Airport Private Limited
Pragati Power Corporation Government of India, Ministry of Health & Family Welfare Public Works Department, Delhi Public Works Department, Delhi Northern Railway NDMC DSIIDC Lahore Hospitals Society

Delhi
Bawana AIIMS crossing, Delhi Delhi Delhi Delhi Delhi Najafgarh Delhi Delhi

Shivaji stadium (Delhi) project (modernisation)


Source: projectstoday.com

NDMC

21.7

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BUSINESS OPPORTUNITIES Delhi November 2010

Major industrial projects being planned


Project Elevated ring Road (Noida) project Integrated rail-cum-bus transit (IRBT) system Jamnagar-Patiala pipeline project Modern wholesale fruit market (Tikri Khampur) project Multilevel underground carpark (Delhi) project Hospital (Siraspur) project Hospital (Madipur) project Hospital (Jwalapuri) project Multilevel car parking (Delhi) Sector Roadways Railways Gas pipeline Market complex Car parks Hospitals Hospitals Promoter Noida Toll Bridge Co Limited Government of India, Ministry of Railways Reliance Gas Transportation Infrastructure Limited Delhi Agricultural Marketing Board Municipal Corporation of Delhi Government of Delhi Government of Delhi Government of Delhi DMRC Public Works Department, Delhi Indraprastha Institute of Information Technology Investment (US$ million) 572.8 486.7 356.5 147.7 22.6 21.7 21.7 21.7 21.7 Delhi Delhi-GurgaonGhaziabad Multiple states Tikri Khampur Delhi Siraspur Madipur Location

Hospitals
Car parks Civil construction Community services

Jwalapuri
Delhi Delhi Delhi

Police line complex (Delhi)


Indraprastha Institute of Technology (Delhi)
Source: projectstoday.com

21.7
25

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November 2010

Contents
Advantage Delhi State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Delhi

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DOING BUSINESS IN DELHI Delhi November 2010

Key investment promotion offices


Key agency Delhi Financial Corporation Delhi State Industrial and Infrastructure Development Corporation Limited (DSIIDC) Delhi Khadi and Village Industries Board The Department of Industries, Government of NCT Delhi Description This organisation provides financial assistance for industrial and commercial activities in the state. It is involved in providing infrastructure and marketing facilities to industries. It offers financial assistance to specific type of small scale industries (khadi and village industries). This organisation serves as the nodal agency to plan, promote and develop industries in the state.

State Level Export Promotion Scheme (SLEPC) has been constituted to draw export policy and action plan and approve infrastructure projects for financial assistance under Assistance to States for Developing Export Infrastructure and Allied activities (ASIDE) scheme of Central Government. DSIIDC is responsible for the distribution of funds to the developer agency under the ASIDE scheme upon approval of a project.

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DOING BUSINESS IN DELHI Delhi November 2010

Key approvals required (1/5)


Approvals and clearances required

List of procedures Obtain director identification number (DIN) online from the Ministry of Corporate Affairs portal (national). Obtain digital signature certificate online from private agency authorized by the Ministry of Corporate Affairs (national). Reserve the company name online with the Registrar of Companies (ROC) (national).

Departments

Estimated time 1 day

Authorised agent 3 days 2 days 1 day

Registration for starting a new business

Stamp the company documents at the State Treasury (state).


ROC

Get the Certificate of Incorporation from the Registrar of Companies, Ministry of Corporate Affairs (national)
Source: www.doingbusiness.org

5 days

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DOING BUSINESS IN DELHI Delhi November 2010

Key approvals required (2/5)


Approvals and clearances required

List of procedures Make a seal (private). Obtain a Permanent Account Number (PAN) from an authorized franchise or agent.* Obtain a Tax Account Number (TAN) for income taxes deducted at the source from an authorized franchise or agent.* Register for Value-Added Tax (VAT) at the Commercial Tax Office (state).* Register with Employees' Provident Fund Organization (national).* Register for medical insurance at the regional office of the Employees State Insurance Corporation (national).*

Departments Authorised agent Authorised agent

Estimated time

1 day
12 days 12days 9 days

Registration for starting a new business

Central and State excise

13 days 15 days

* Parallel Activity Source: www.doingbusiness.org

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DOING BUSINESS IN DELHI Delhi November 2010

Key approvals required (3/5)


Approvals and clearances required

List of procedures

Departments

Estimated time

Obtain no-due tax certificate from the House Tax Department (municipal).
Obtain No-objection certificate regarding land use as per master plan/zonal plan (municipal). Notarise the affidavit/undertaking (private sector).* Apply for building permit at the Municipal Corporation of Delhi (MCD; municipal). Receive inspection of the site by the Municipal Corporation of Delhi (municipal). Obtain building permit from the Commissioner of the Municipal Corporation of Delhi (municipal). Hire an independent electricity contractor and obtain load approval (private). Apply for permanent electricity connection with the BSES (private). Receive on-site inspection by BSES (private). BSES 3 days MCD, Delhi 67 Days House Tax Department 18 days

Obtaining construction permit

* Parallel acticity Source: www.doingbusiness.org

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DOING BUSINESS IN DELHI Delhi November 2010

Key approvals required (4/5)


Approvals and clearances required

List of procedures Receive inspection by an engineer from the Municipal Corporation of Delhi at the plinth level. File completion certificate and apply for occupancy permit at the Municipal Corporation of Delhi (municipal). Receive final inspection of the construction by the Municipal Corporation of Delhi (municipal). Obtain occupancy permit from the Municipal Corporation of Delhi (municipal). Apply for permanent water and sewerage connections to Delhi Jal Board (municipal). Apply for permanent phone connection at Bharat Sanchar Nigam Limited (national).* Receive an initial on-site inspection from Delhi Jal Board (municipal).* Obtain permanent water and sewerage connection from the Delhi Jal Board, electricity and phone connection.* Obtain permanent electricity connection from BSES (Private)* Obtain phone connection (with inspection) from the BSNL (National) *

Departments

Estimated time 1 day

MCD, Delhi

1 day 1day 30 days

Obtaining construction permit

1 day 1 day Respective authorities 1 day 20 days 20 days 2 days

* Parallel acticity Source: www.doingbusiness.org

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DOING BUSINESS IN DELHI Delhi November 2010

Key approvals required (5/5)


Approvals and clearances required List of procedures Estimated time 3 days 2 days 11 days 40 days

Check for encumbrances at the office of the sub-registrar of assurances (state).


Pay the stamp duty at the State Treasury and obtain stamp paper (state). Registering property in New Delhi

The final sale deed is prepared by the buyer or his lawyer (private).* Execute and register the final sale deed at the office of subregistrar (state).

Apply to the Circle Revenue Office for mutation of the property title (state).
* Parallel acticity Source: www.doingbusiness.org

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DOING BUSINESS IN DELHI Delhi November 2010

Cost of doing business in Delhi


Parameter Land price (per sq ft) (Commercial land for office use or institutional land) Labour (per man-year) Lease rent (per sq ft) Electricity (per kWh) Residential rent (per sq ft per month) Five-star hotel room (per night) Water industrial (per 1,000 litres) US$ 65 to US$ 543 US$ 1,206 to US$1,333 US 478.2 cents to US 543.4 cents Cost estimate

Commercial: US cents12.95 to US 13.52 cents Industrial: US 11.8 cents to US 12.1cents


US 16.8 cents to US 68.8 cents US$ 152.1 to US$ 217.1 US 21.74 cents to US 217.39 cents

Sources: Asia Pacific Property Digest, 2009, Jones Lang LaSalle, Delhi Government websites, industry sources

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DOING BUSINESS IN DELHI Delhi November 2010

Single-window approval mechanism

The Delhi Government has set up Business Facilitation Council (BFC) to facilitate single-window clearances from various departments for establishing industrial enterprises in a time-bound manner. The BFC is headed by the Secretary and Commissioner (Industries) and the Joint Commissioner (Industries) as its member secretary. It will be operated through the BFC cell headed by the Joint Commissioner of Industries. Major objective of BFC is to facilitate entrepreneurs in obtaining clearances from various departments/agencies in a time bound and efficient manner for setting up industrial enterprises. BFC will be the single point contact for the entrepreneurs till Part-II of the entrepreneur memorandum is received and production is commenced. Senior functionaries of concerned departments such as the Department of Industries, Delhi Pollution Control Committee, Trade & Taxes Department, electricity distribution companies, Municipal Corporation of Delhi, Labour Department, Delhi Fire Service Department, Drug Controller, District Magistrate , Delhi State Industrial and Infrastructure Development Corporation Limited, and Excise Department will be the nodal officers. These nodal officers shall ensure that the applications received by their departments are processed without any undue delay.

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DOING BUSINESS IN DELHI Delhi November 2010

Contact details
Key agency Contact information Plot No 37 and 38, Institutional Area, Pankha Road, D-Block Janakpuri, Delhi 110058. Phone: 91-11-2852 5035 N-36, Bombay Life building, Connaught Circus, Delhi 110001. Phone: 91-11-2331 1590 1, Canning Lane, KG Marg, Delhi 110001. Phone: 91-11-2378 2336 Office of the Commissioner of Industries, 419, Udyog Sadan, FIE, Patparganj, Delhi - 110092. Phone: 91-11-2215 7002

Delhi Financial Corporation (DFC)

Delhi State Industrial Development Corporation Limited (DSIIDC)

Delhi Khadi and Village Industries Board

Department of Industries, Government of NCT Delhi

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DOING BUSINESS IN DELHI Delhi November 2010

Annexure
Exchange rates Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Average for the year

INR equivalent of one US$ 46.6 48.3 48.0 45.6 43.7 45.2 45.0 42.0 40.2 46.0 47.4

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DISCLAIMER
India Brand Equity Foundation (IBEF) engaged ICRA Management Consulting Services Limited (IMaCS) to prepare this presentation and the same has been prepared by IMaCS in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of IMaCSs and IBEFs knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. IMaCS and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither IMaCS nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.

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