Rajasthan - Other Investment Policies
Rajasthan, with its diverse agro-climatic conditions, is richly endowed in the cultivation of a variety of crops. The State is a major producer of oilseeds and spices. With abundance of land, the State is well positioned to develop agro-processing and agri-business, which would have a major impact on the State's economy, particularly in the rural areas.
Right to adequate housing is a basic human right as shelter is a basic human need. Provision of adequate housing is emerging as a major thrust area for Government of India as well as the State Governments. Government of Rajasthan accords a very high priority to this task. With all round increase in cost of land, building materials, labour and infrastructure, affordable housing has become a distant dream for the economically weaker and low income groups. Hence the role and intervention of the State Government becomes all the more important.
Animal Husbandry in Rajasthan is a major economic activity contributing over 13 % of the total net domestic income. Rajasthan has 108.53 lacs cattle & 104.46 lacs buffaloes as per 2003 livestock census. Some of the nationally recognized breeds of milch and draught cattle viz. Rathi, Tharparkar, Gir, Kankrej, Nagauri, Malvi & Haryana have their home tracts in Rajasthan. The State possesses 6.06% of cattle and 11.20% buffalo of the country. The state produces approximately 8.05 million tonnes of milk per year, which is approximately 10% of total milk production in the country. This indicates that the cattle in the State are of better quality in comparison to those found in other parts of the country.
Bio Technology is a frontier area of Science and Technology with a high promise for the welfare of humanity. A new generation of biotechnology developed as a result of intensive work in India has opened up new opportunities for economic development in the country.
Rajasthan is very rich in cattle breed also. Improved species of camel, sheep, rathi cows, nagouri bullocks etc hold great promise of research and development in biogenetics. State has highest livestock population and there is good potential in animal husbandry and genetic engineering. Thus Rajasthan has great potential to create immense industrial activity in Biotechnology and modern Biotech products involving recombinant DNA based products and Bio Informatics. In line with the developed world, the Government would make all efforts to focus on modern processes in the area of agriculture industry, floriculture, human and animal health care (medical and veterinary science) and environment to provide good commercial opportunities in the field of Biotechnology.
Captive power Plant is a generating unit(s) with aggregate capacity not exceeding 166 MW which produces power for captive consumption of its owners. For the purpose of this clause, an owner is defined as a shareholder/s of a company registered under the Indian Companies Act, 1956, a partner/s in a partnership firm, or an individual. Captive power consumer is a consumer receiving power from a Captive Power Plant, but RSEB shall not be construed as a Captive Power Consumer.
This policy comes into operation with immediate effect and shall remain applicable for Captive Power Plants established up to 31st March, 2004, until superseded or modified by any other order of the Government of Rajasthan. Any Captive Power Plant commissioned within the Operative Period for meeting the requirements of Captive Power Consumers is eligible under this Policy.
In exercise of the powers conferred by rule 65A of the Rajasthan Minor Mineral Concession Rules, 1986, the State Government in the interest of mineral development, hereby notifies the procedure for grant of prospecting licence and mining lease for Granite as under,
Whereas with a view to promote generation of power from non-conventional energy sources, Government of Rajasthan promulgated a Policy on 11.3.1999. This Policy known as "Policy for Promoting Generation of Power through Non-Conventional Energy Sources". During the currency of this Policy, a separate Policy was issued on 4th February, 2000 exclusively for promoting generation of electricity from wind. This Policy known as "Policy for Promotion of Electricity Generation from Wind". During the currency of Wind Policy 2000, a new Policy was promulgated in April 2003.
Rajasthan has been in the forefront of Economic Reforms. It was the first State in the country to adopt the International Competitive bidding route for setting up power projects. It was also the first in the country to announce a State Road Policy, facilitating the entry of private enterprise in the Roads sector. A new, simplified Sales Tax Act has been introduced by the State Government. The Mineral, Marble and Granite policies of 1994 have promoted scientific exploration and exploitation of the State's rich minerals. The Industrial Policy 1994 has brought about a significant change in its investment climate. The Rural Non Farm Policy of 1995 - the first of its kind in the country - has helped focus efforts on growth and employment through rural industrialisation.
To generate employment in the State and to encourage investments in financial and social infrastructure, the Government announced the launch of a new Industrial and Investment Promotion Policy while presenting the budget 2009-2010. The broad outlook of the new policy not only focuses on industrial investments but has also aimed at encouraging investment in service sector.
The policy interventions are aimed at enhancing enterprise and sector competitiveness while stimulating a substantial increase in the flow of investment from within India and from abroad.
In the 21st century and the Information Age, a combination of dramatic sociological, political, economical and, last but not the least, technological factors are at play to bring about fundamental and irreversible changes in the entire social system. The scope of these transformations is global. In the times to come, economic power of nations is going to be a function of information technology.
Government of Rajasthan has considered it appropriate to promote proper use of huge mineral resources of the State for sustainable economic development of its people and the nation as a whole by amending its existing mineral policy, 1994. To achieve this, it has been decided to simplify the rules and procedures so as to ensure scientific, safe and eco-friendly mining, productivity, conservation and cost-effectiveness, social commitment, zero waste mining, health and welfare of people. The scientific mining has to go hand in hand with sustainable management practices for the long term economic development of the State.
The Tourism Policy of Rajasthan 2001 envisages creation of adequate and suitable infrastructure like accommodation, transport, communication links and other essential amenities. Although, Tourism Policy 2001 has identified provision of suitable accommodation for various categories of tourists as the most crucial component of tourism, however, the growth of hotel industry in Rajasthan has been dismal during the last five years. The rapid increase of tourist inflow in the State has thrown up an immediate requirement for accommodation facilities in all categories. With a view to bridging the gap between current demand and supply of hotel accommodation in Rajasthan and in view of the projected growth of tourism in the coming decade a new Hotel Policy 2006 has been announced by the State Government in June 2006. The provisions of concessions & facilities on the New Hotel Policy would apply only to new Hotels & accommodation units.
The State of Rajasthan is the largest state in India situated in Northern part of the country. Its population as per 2001 census was 56.4 million.
The state allocates around 40% of its budget in Social Sectors like Education, Healthand Family Welfare, Housing, UDH, and welfare of SC & ST. A sum of Rs. 1100 crore (approximately) was spent on Medical & Health and Family Welfare in 2004-05, about 22% of which was spent on referral health care services.
There has been encouraging growth in development of wind power projects in the State in the recent past, primarily due to prevailing incentives and benefits offered in the afore-mentioned Policies. The capacity build up of 100 MW envisaged in the 2000 Policy is expected to be achieved by December, 2003.
Developers, manufacturers, investors alike have been calling for formulation of a new Policy well before the expiry of the existing Policy so that the momentum gained is maintained. As a demonstration of their continued commitment to setting up of wind energy generation capacity in the State of Rajasthan, developers have shown willingness and registered their applications with RREC for setting up wind power projects of additional capacity of 200-250 MW.
In 1994, the State Government promulgated the Policy on Road Development in Rajasthan. The policy envisages the connecting of villages in areas deficient in roads, connecting panchayat headquarters, developing and strengthening the medium and low density traffic roads and construction of interstate links and bridges.
The private sector is being invited to participate in the construction of financially-viable bridges bypasses, Rail Over-Bridges (ROBs) and tunnels, etc. In such projects, investments are expected to be recovered through the levy of toll.
The rates of toll have been revised so that the investment can be recouped in 10-15 years itself - matching the maturities of usual long-term loans that are provided to such projects. The present toll rates will be increased by 30 per cent on November 1, 2000 and again by 40 per cent on November 1, 2004.
A State Road Development Fund was created in 1994-95 to provide seed money/balance investment for projects backed by financial institutions.
The National Forest Policy, 1988 lays down the guiding principles for forest management in all the states of the country including Rajasthan. The peculiar geo-climatic conditions of Rajasthan with vast areas of the state being part of the "That Desert", has not only made it a forest deficit state but also turned forestry to be a very challenging task. In-fact the conservation of forest and biodiversity of the State as well as meeting the livelihood needs of the forest dependent communities can not be addressed without a comprehensive State specific Forest Policy.
Affirming the fact about the Livestock sector's importance in the State as an engine of social & economic growth, especially in the rural area, a fresh initiative in terms of policy framework is required for the following reasons:
The sector falls under the purview of the State, therefore its development is needed to be taken care of by the State itself with the assistance & direction of the GOI;
Special Economic Zones (SEZs) are specifically delineated duty-free enclaves treated as a foreign territory for the purpose of industrial, service and trade operations, with exemption from customs duties and a more liberal regime in respect of other levies, foreign investment and other transactions. Domestic regulations, restrictions and infrastructure inadequacies are sought to be eliminated in the SEZs for creating a hassle-free environment. The SEZ Scheme seeks to create a transparent system by introducing simplified procedures for enhancing productivity and making it easier to do business.
The prime objective of the Government is to develop specially delineated economic zones conforming to the guidelines of the Government of India to provide enabling infrastructure and a hassle free environment to promote exports from the State. Special emphasis will be laid on development of product specific Special Economic Zones to harness inherent potential of the State in the fields of Gems & Jewellery, Handicrafts, Woolen Carpets etc. which would result in increase in exports of these commodities with high value addition.
In order to promote planned / integrated development of various towns by providing the basic infrastructure facilities and to safeguard the interest of the public at large by ensuring availability of residential plots/houses at affordable prices, the State Government decided to review the existing Township Policy, 2002 and other policies and programmes pertaining to urban areas of Rajasthan.
Rajasthan is one of the leading Tourism States of India. The Glorious Heritage and colorful culture of the state is a special attraction for Foreign Tourists. Heritage assets, found all over the state can be utilized for development of Tourism. During the last few years, there has been tremendous increase in the number of Tourists to the State. However the infrastructural facilities have not kept pace. Presently there are 36,000 rooms available for Tourists and by year 2012 an additional 20,000 Hotel rooms would be required for Tourists in the State. With this objective, the State Govt. had in 2006 announced a New Hotel Policy proposing several concessions. The concessions in the hotel Policy 2006 were to be extended to the Star category of Hotels only, whereas several other categories of hotels, heritage hotels and other tourism units such as camping sites, holiday resorts and estaurants etc. are also providing accommodation for tourists.
Water is a prime natural resource, a basic human need and a precious asset of the State. Planning, development, operation and maintenance of all water resources to support the growth of the state economy and the well being of the population, in response to the growing need for drinking water, agricultural products, industrial production and electricity, a general improvement of living conditions and employment is of utmost importance. Planning and development of water resources need to be governed by the state's perspectives. The requirement of utilising all available water resources, surface and ground, in a judicious and equitable, as well as sound economic manner needs a well defined State Water Policy.