Milestone Investment

Resounding success

HAPPENING HARYANA GLOBAL INVESTORS’ SUMMIT-2016
357 MoUs signed in the two-day summit with a massive proposed investment of Rs. 5.84 lakh crore

HAPPENING Haryana Global Investors’ Summit-2016’, the maiden investment summit organised by Haryana in Gurgaon by the Manohar Lal led BJP government in March proved to be a resounding success. Exceeding the expectations of the state government, as many 357 Memoranda of Understanding (MoUs) were signed in the two-day summit with a massive proposed investment of Rs. 5.84 lakh crore. Successful in positioning Haryana as the numero uno investment destination in the country, the investment summit created the potential for 5 lakh jobs in the state.

Despite taking place in the shadow of the violent Jat protest in the state demanding reservation, the ‘Happening Haryana’ summit proved the faith and confidence of the major investors of the country and abroad in Haryana’s economy as they not only attended in large numbers, but also pledged to invest huge amounts in the state. As many as 15 Union ministers attended the summit along with the ‘Who’s Who of the Corporate India’. Twelve countries were given partner status in the summit. These included the Czech Republic, Japan, Mauritius, New Zealand, People’s Republic of China, Republic of Korea, Republic of Malawi, Republic of Peru, Republic of Poland, Spain,the United Kingdom and Tunisia.

The summit showcased the key enablers for sustainable manufacturing growth, state’s policies, focus sectors, connectivity, infrastructure, skilled labour and strengths in manufacturing, proved to be a common platform for the key industry stakeholders to interact and exchange ideas on growth opportunities in Haryana which is celebrating the golden jubilee of its foundation this year. The persuasive powers and the sustained efforts of Chief Minister Manohar Lal, Finance and Industry Minister Captain Abhimanyu and their team of officials, including Industries Secretary Devendra Singh who held road shows in different parts of the country, ensured the success of the summit, placing Haryana as the most preferred investment destination in the country.

Representatives of the 12 partner countries and many multinational companies (MNCs) were among the large number of participants at summit. Stressing on converting the MOUs into major projects, the Chief Minister said that the Haryana State Industries Infrastructure Development Corporation (HSIIDC) would appoint Relationship Managers to facilitate the investors and ensure implementation. The state has also made provision for the fast-tracking clearances of the projects and ensured that there will be no inconvenience to investors in setting up their projects, he said.

To facilitate implementation of the projects signed in the MoUs, land would be made available from the developed land bank in the state. The HSIIDC has also started the system of Online Geo-referenced Display to provide investors with information regarding vacant lands in the industrial estates. Encouraged by the tremendous response to the investor’s summit, the Chief Minister said the second summit would be held in 2018. The government promised to ensure uniform development of the state as seen from the fact that MoUs were signed by the state for all districts.

As many 357 MoUs were signed in the two-day summit with a massive proposed investment of Rs 5.84 lakh crore. Successful in positioning Haryana as the numero uno investment destination in the country, the investment summit created potential for creation of 5 lakh jobs in the state

It was also a reflection of the confidence of the investors that as many as 37 MoUs had been signed for 19 projects in the Jat agitation-affected three districts of Sonepat, Jhajjar and Rohtak with a total investment of Rs. 1.46 lakh crore. The uniform development of the state was ensured with as many as 39 MoUs worth Rs. 1.28 lakh crore signed for districts which do not fall in the National Capital Region (NCR). This proved the point that the investors were not just interested in setting up business in the developed areas of the NCR, but even in the remote areas of Haryana which for long have remained industrially backward.

Out of the total agreements made at the summit, as many as 10 per cent of the MoUs were signed with MNCs which showed that Haryana has become the first preferred destination for investment in the country. This could result in flow of additional foreign direct investment (FDI) into the state, which would boost Haryana’s economy further.

The BJP government assured the investors that it was committed to strengthening the infrastructure sector in the state to facilitate business opportunities. As a result, 40 per cent of MoUs alone were signed for manufacturing projects. This augurs well for the state’s economy. The state government announced that it was committed to make the ambitious project ‘Make in India’ of Prime Minister Narendra Modi a huge success. Investors were told that ancillary units will be set up near major projects to accelerate the pace of development, and generate job opportunities. The focus of the summit was on the setting up of mega projects.

The break-up of the investment proposals makes interesting reading. As many as 16 per cent of MoUs were signed for projects worth over Rs. 1,000 crore. As much as 30 per cent of the projects were over Rs. 100 crore worth. Since MSMEs constituted the backbone of industrial development and enhanced job opportunities, 26 per cent of MoUs belong to this sector. Haryana has become the first state of northern India to attract investment of such magnitude.

Two MoUs were signed for aerospace and defence sector, 10 for education and skill development, 117 for manufacturing, 22 for real estate, 16 for infrastructure, 48 for agro, food processing and allied industries, 39 for energy, renewable energy and solar parks, 35 for electronics, IT and ITeS, eight for pharma and chemical industry, 13 for auto, components and light engineering, 15 for textile, apparel, knitting, embroidery and technical textiles, 9 for footwear and accessories, and 23 in other sectors.

Some investment MoUs for the promotion of agriculture sector were also signed. These MoUs were signed in the presence of State Agriculture Minister, OP Dhankar during the sectoral session on ‘Re-energising the agri-business: Untapped potential of Haryana’. Union Minister of State for Food Processing Industries, Harsimrat Kaur Badal, was also present on this occasion. Four companies were handed over the agreements on the spot. These included MoUs of Rs. 150 crore with Sambhaji Tech Agro Limited, another of Rs. 100 crore with Farm Agro Food Private Limited, Rs. 55 crore with PMP Agro Industry and that of Rs. 40 crore with Compact Industry Private Limited.

As many as 37 MoUs involving an investment of Rs. 1.28 lakh crore were signed during the two-day investors meet in Gurgaon. These investments would be made for the non-NCR areas of the state. Incidentally 57 per cent of Haryana’s area falls in the NCR and it is more developed than the areas outside it. This is so because of the proximity to the national capital and easy availability of funds for the required projects. Said Sudhir Rajpal, Managing Director of HSIIDC, “This is a very healthy sign for the development and progress of the backward areas of the state. The signing of MoUs for non-NCR areas shows that there is a change of perception of the investors towards the backward and interior areas of Haryana.’’

It is true that industrial big-wigs like NR Narayana Murthy, Indira Nooyi or Adi Godrej did not announce any fresh investment in Haryana, but their presence itself acted like a tonic to the investment meet. As many as 20 corporate leaders attended the inaugural session of the summit on March 7. Four top business tycoons were present at the closing session the next day.

It was also a reflection of the confidence of the investors that 37 MoUs were signed for 19 projects in the Jat agitation affected three districts– Sonepat, Jhajjar and Rohtak– with a total investment of Rs 1.46 lakh crore. Out of the total agreements made at the investors summit, as many as 10 per cent of the MoUs were signed with MNCs

The biggest investment in the state was made by Dalian Wanda Group of Wang Jianlin, the richest Asian. Wang committed to invest Rs. 60,000 crore in an industrial park at Kharkhoda near Sonepat. However, the MoU for this was signed before the investors’ summit. Speaking at the summit, Wang Jianlin, Chairman, Dalian Wanda Group, China said, “We attach great importance to partnership with the state of Haryana. We are working with the Haryana Government to set up a super large project, where 150,000-200,000 jobs will be created.’’

Indiabulls Group also announced a major investment in the state, promising to invest Rs. 25,000 crore in the next 7-8 years. It will directly lend through home loans and also indirectly lend to the developers of various projects, especially in affordable housing projects.

Real estate giant DLF announced plans to invest Rs. 20,000 crore. Bharti Enterprises announced Rs. 2,000 crore in the electronics and information technology sector. Baba Ramdev and Patanjali Ayurved announced investment of Rs. 5,000 crore to set up a university and an international health care centre. Ikea and Walmart committed themselves to Rs. 2,000 crore and Rs. 500 crore investment, respectively, in the state.

The HSIIDC also signed MoUs with several companies including Vatika Limited and IREO Private Limited worth Rs. 45,365 crore for infrastructure development. A MoU of Rs. 23 crore was signed for skill development with All India Plastics Manufactures Association, of Rs. 500 crore for logistic park with Allcargo, of Rs. 680 crore for solid waste management with Alqimi India Private Limited and another involving an investment of Rs. 125 crore for skill development with the Amartex Group.

Apart from these, a MoU involving an investment of Rs. 200 crore was signed for agriculture implements with Beri Udhyog, Rs. 552 crore for food processing plant with Boortmalt India Holdings Private Limited, Rs. 8,650 crore for solar energy with CLP, Rs. 90 crore for cotton yarn spinning with Colour Creations Private Limited, Rs. 6,132 crore for infrastructure with Countrywide Promoters Private Limited, Rs. 110 crore for CSR Initiative with DLF Foundation, Rs. 200 crore for manufacturing of LED and Non-LED indoor lighting, fixtures and downlighters, home decoration and furniture products and parts thereof with Eglo India Production and of Rs. 30 crore for manufacture of abrasives with Excel Abrasives Private Limited.

Likewise, an MoU of Rs. 3,678 crore for food processing plant was signed with Indo European Sustainable Development (IESD) with associate partner ASACA India Private Limited, Rs. 1,500 crore for R&D with IOCL, Rs. 1,000 crore for electronic cluster with Jaina Mobile Industries (Karbon Mobile), Rs. 280 crore for food processing with Karnal Foodpack Cluster Limited, Rs. 850 crore for Solar Energy with Lanco, Rs. 8,749 crore and Rs. 5,500 crore for infrastructure with Omaxe and Puri Construction Private Limited, respectively, Rs. 100 crore for healthcare with Sobti Foundation (Maxwell), Rs. 710 crore for tourism with Swiss International Hotels, Rs. 300 crore for automatic parking with UBE Industries, Rs. 1,000 crore for electronics, IT and ITeS with Vodafone and Rs. 490 crore with Wanfeng-Aluminium Wheel (India) Private Limited.

The Solar Power Policy, released on the occasion, aims at creating a conducive atmosphere for investment in the solar energy sector and with the help of this policy, it is envisaged to add 4,000 MW of solar power by 2022

The other MoUs which were signed included an MoU of Rs. 15,000 crore for financial services signed with ICICI, Rs. 2,000 crore for electronic, IT and ITeS with Bharti Airtel. Similarly, MoU of Rs. 283 crore was signed with Star Wire (India) Limited for manufacturing special and critical steel adopting high-tech technologies. Also, an MoU of Rs. 200 crore was signed with Minda Kosei Aluminium Wheel Private Limited for automobile parts alloy wheels, of Rs. 190 crore with Honda for worker housing, and of Rs. 150 crore with Plasser India Private Limited for manufacturing unit for track maintenance machines.

Apart from these projects, MoUs of Rs. 100 crore each were exchanged with Minda Industries Limited and Mindarika Private Limited for automobile parts switches, and Rs. 80 crore with TG Minda Private Limited for automobile parts rubber hoses. An MoU was also exchanged with Snapdeal for e-commerce.

On the second day of the Happening Haryana Global Investors Summit, Haryana also released its Solar Power Policy 2016 to promote generation of green and clean power using solar energy and to harness the enormous solar power potential of the state, in the presence of Union Minister, Road Transport and Highways, Nitin Gadkari, Haryana Governor Kaptan Singh Solanki and Chief Minister, Manohar Lal, Union Minister of State for Defence, Rao Inderjit, Haryana Finance Minister, Capt. Abhimanyu, Haryana Health Minister, Anil Vij, Haryana Woman and Child Development Minister, Kavita Jain, Haryana Minister of State for Renewable Energy and Mines and Geology Nayab Singh Saini, Swami Ram Dev and CII Northern Region Chairman, Shree Kant Somany.

The policy aims at creating a conducive atmosphere for the investors to invest in the state in the solar energy sector and with the help of this policy, it is envisaged to add 4,000 MW of solar power by 2022.

The Solar Power Policy would provide an enabling environment for fulfilling the vision of Prime Minister Mr Narendra Modi to add 1,00,000 MW of solar power by 2022. For giving a boost to the solar energy sector, various incentives like industrial status, exemption in change of land use approval, electricity duty, besides free wheeling and banking facility, exemption of T&D, cross subsidy charges have been provided in the policy. The government has also decided to purchase solar power over and above the solar Renewable Purchase Obligation (RPO) subject to a limit of 200 MW.

Elaborating further on the policy initiatives, Ankur Gupta, Principal Secretary, Renewable Energy Department, Haryana, stated that the policy is to bring significant investment from project developers. Solar Parks will be set up in the State. Also, the installation of Solar Power Plants on canals tops/banks shall be encouraged in the state. Besides this, the policy also aims to promote small investors by reserving 20 per cent of the target for the projects of capacity of one MW to two MW. For such projects, a price preference of 2 per cent will be given to those who set up their plants within Haryana. Sale of power to Haryana Government or to a third party is permitted without levying any charges under the policy. Due to land constraints, the installation of rooftop solar power project has been encouraged by allowing the sale of power to government at the last lowest discovered tariff without tendering. Rooftop Solar Power Plants can be set up without any permission from the building plan sanctioning authority.

Transmission line for evacuation of solar power will also be provided by power utilities free of cost. The space between the installed solar panels could be used for commercial floriculture or horticulture related activities. Under the policy, the
installation of Agricultural Solar Powered Pump sets will be promoted to meet water or irrigation energy needs. The surplus power generation from the solar pump sets might be bought by the Haryana Power Purchase Centre (HPPC) at Average Power Purchase Cost (APPC) rate of the year.

Union Railway Minister Suresh Prabhu also committed investments for projects in Haryana and announced the setting up a rail coach factory. Minister of Road Transport and Highways, Nitin Gadkari announced Rs. 33,000 crore for national highways in the state. He announced a special plan for decongesting the Delhi-Gurgaon stretch of NH-8 through construction of four flyovers, two bypasses and a tunnel at Dhaula Kuan. Gadkari announced that the first waterways would be made available to Haryana connecting Wazirabad to Delhi.

Nitin Gadkari also announced that for the first time in India, the Delhi-Manesar stretch would get Metrino rapid transport system, a network of small, fully automatic pods which travel independently by using overhead wires. They are a good and a pollution-free mode of transport. The project would cost around Rs. 4,000 crore. This will be a cheaper and a quicker mode of transport for the people, said Gadkari.
Principal Secretary, Industries Devender Singh, on behalf of Haryana Government and the British Deputy High Commissioner, David Lelliott exchanged MoU documents in the presence of Chief Minister Manohar Lal to support the ease of doing business in Haryana during the Partner Countries’ Session.

Twelve countries were partner with Haryana in the summit. These included Czech-Republic, Japan, Mauritius,New Zealand, People’s Republic of China, Republic of Korea, Republic of Malawi, Republic of Peru,Republic of Poland, Spain,the United Kingdom and Tunisian Republic

Ambassador, Embassy of Czech Republic, expressed gratitude to Haryana Government and CII for inviting the Czech Republic as a partner country in the summit. He said Haryana is one of the fastest growing states in India as the state has made tremendous efforts to promote entrepreneurship. As a result, the state has become a major production base and export hub of a large scale. Czech Republic is interested in partnering with Haryana in the areas of power generation, renewable, water and biomass, he said.

Ambassador, Embassy of the Republic of Korea said that Haryana is the best investment destination as of its proximity to Delhi and other reasons. He also invited the Chief Minister to visit Korea. High Commissioner New Zealand High Commission Grahame Morton appreciated Haryana’s success story. Ambassador Embassy of the Republic of Peru Jose JG Betancourt R described Haryana as a great state as it is doing its works in an outstanding way as like Republic of Peru. We are looking forward to this event, he added.

British Deputy High Commissioner David Lelliott said that they were planning to make an investment of Rs 1,000 crore in the healthcare sector in Haryana which would expect to generate 3000 jobs. “We look forward to continue to support the growth of Haryana.” Deputy Chief of Mission Embassy of Tunisia Jamal Boujdaria hoped for all success of this event and thanked the government for making Tunisia a partner country.

Director General (South Asia) Ministry of Economy, Trade and Industry (METI) Japan Seiji Takagi said that traditionally India and Japan has long lasting relationship. More than 300 Japanease companies have their base in Haryana. Haryana is one of the most important states in DMIC. “We look forward to increasing the Japanese investment in wonderful state of Haryana,” he added.

The biggest investment was made by Dalian Wanda Group, of Wang Jianlin, the richest Asian–Rs 60,000 crore in an industrial park at Kharkhoda near Sonepat. Indiabulls Group promised to invest Rs. 25,000 crore in the next 7-8 years. It will lend through home loans and also to developers of affordable housing projects

Director, Ocean Economy, Mauritius, Seewraj Nundlall said that Haryana and Mauritius have lots of similarities in language, culture and in terms of business. Haryana is focusing on ease of doing business which is very important to conduct the business in a smooth manner. “We also have been promoting ease of doing business in Mauritius for last 10 years. We are more than willing to help in implementation of ease of doing business in Haryana,” he added. He also invited the Chief Minister to lead a delegation to Mauritius. Representatives from the High Commission of Malawai and Embassy of Japan also presented their remarks on mutual business and investment opportunities.

The ‘Happening Haryana Global Investors’ Summit-2016 proved to be a great success from the investment point of view. It gave the most tangible proof of the faith and confidence industry and investors have in Haryana’s Enterprises Promotion Policy. The steps taken by the government to usher in a new era of balanced regional growth met international recognition from investors. g

‘Haryana has a lot to offer’
Haryana Chief Minister Manohar Lal said that Haryana is looking forward to enhance ties of cooperation and mutual sharing of interests. Delivering the keynote address during partner countries session on the first day of the two-day Happening Haryana Global Investors’ Summit at Gurgaon, the Chief Minister said, “Sector specific technology, best practices and investment opportunities are the obvious starting points of our bilateral dialogue and cooperation.,’’

The Chief Minister said that Haryana has a lot to offer across sectors to those willing to explore. With a 3.5 per cent contribution to India’s economy despite having only 1.3 per cent of its area, Haryana is an important Indian state. “Our manufacturing and services sector together contribute more than 80 per cent to the state’s economy. Even then, we are at heart an agriculture friendly state.”

The Chief Minister said, “You will be surprised to know, that such a small state is the second largest contributor to the national corpus of food grains. We are a significant manufacturer of automobiles, agriculture implements, textiles, automotive parts, scientific instruments, and several ancillaries”. Besides manufacturing, Haryana is a large IT/ITes exporter of the country. He assured his full support to the future business karma of the people and their companies in Haryana.

The Chief Minister said that his government planned to amend the Factories Act to exempt industrial units, using power and employing less than 20 workers, and also, units not using power and employing less than 40 workers. The Payment of Wages Act will also be amended to remove the anachronistic condition that wages must be paid in cash to workers drawing salary of up to `18,000 per month. Listing some of the key initiatives taken to make things easy for investors, he said Haryana had already ended the uncertainty over future enhancements in the cost of industrial plots, launched e-biz portal, introduced automatic CLUs in 75 blocks, done away with the requirement of CLUs in 31 blocks, and set up a unique three-tier grievance redressal system, for both existing and new investors, covering the entire regulatory and governance spectrum. “Whatever little remains, is in the works and would be yours, very soon,” the Chief Minister added.

Haryana Industries and Finance Minister Capt Abhimanyu spoke about the growth and prospects of medium and small scale industries He said With a view to encourage small and medium enterprises, the Haryana Government has decided to reserve 20 per cent of its purchases for this sector. A new policy would soon be introduced for this purpose. Also, the Government would create an e-com portal which could be used by anyone for marketing their products, he said while speaking during the sectoral session on ‘MSMEs: The backbone of Haryana’s Economy’.

The Minister said that the Summit, was the first step taken by the State Government towards entrepreneurship readiness and developing conducive environment for entrepreneurship development. He said that more such initiatives would be taken up by the State Government.

When the Summit was conceived five months ago, it was designed as the first event towards realising the goal of achieving an investment of `1 lakh crore or US$16 billion set when the policy was announced on August 11, 2015. “But now, I am told by our Chief Secretary that the commitments so far had already exceeded this target by two hundred per cent. We hope by tomorrow, this number will see a still more substantial increase. This reflects a resounding endorsement of our policy commitments and an appreciation of the steps taken by my government to implement these,” the Chief Minister said.

Chandrajit Banerjee, Director General, Confederation of Indian Industry, “The fact that 12 countries are taking part in the Happening Haryana Global Investors Summit-2016 is a testimony to the confidence Haryana enjoys as a favourite investment destination in the global business community. The CII will continue to work with the Haryana Government, especially in sectors such as social development, for which an MoU has also been signed. The CII would like to work as
a partner with the Haryana Government and pledge to work in the social development sector for such projects as ‘Beti Padhao-Beti Bachao’ programme and to empower the people of Haryana.

Sumit Mazumdar, President,CII said Haryana is the land of karma and of people who are proactive doers. The state’s Enterprises Promotion Policy-2015 has set the pace for growth of industry in the state. Haryana has become a hotspot for investment both global and domestic. Food processing and agriculture industry can leverage the productive agricultural sector of the state. “The CII pledges to partner with the Haryana government in all ways possible,” said Mazumdar.

According to Haryana Chief Secretary DS Dhesi, the Happening Haryana Global Investors Summit-2016 was organised three weeks after the Make in India Programme. This summit was a step forward in achieving the vision of Prime Minister Narendra Modi of a growth-oriented economy.

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