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Introduction

The framework for the National Capital Region (NCR) was conceptualised when the first Master Plan for Delhi (MPD) was notified in 1962. The framework was conceived to develop a broad area consisting of the Union Territory of Delhi and a few ring towns around it as a metropolitan region to reduce the population pressure on Delhi. The objective of the framework was to sustain the rapid growth process in Delhi, which is also central to national governance. In order to ensure effective planning of the NCR, the National Capital Region Planning Board was constituted in 1985. This board was involved in not only planning the development of the NCR but also in coordinating and monitoring the implementation of the plan and for evolving harmonised policies for the control of land use and development of infrastructure in the region.

According to the National Capital Regional Plan 2021 notified on Sept 17, 2005, the NCR covers a total area of 30,242 sq km comprising the following areas:-

The National Capital Regional Plan 2021 envisages construction of peripheral expressways, regional rail network, infrastructure in power, water, telecommunication, sewerage, drainage, solid waste management, irrigation and rural development. The Delhi government released Rs 3.50 bn to the NCR Planning Board up to March 2009 for financing various infrastructure development projects in the region.

Delhi

Delhi, the National Capital Territory (NCT) of India, is a major political, cultural and commercial centre and an educational hub of India. The National Capital Territory of Delhi is spread over an area of 1,483 sq km, out of which 783 sq km is rural and 700 sq km is urban. As the capital of India, Delhi has undergone a rapid urbanisation process. According to the United Nations Urban Agglomeration 2007 report Delhi is the world’s sixth-largest urban agglomerate in the world. During FY08, the Gross State Domestic Product (GSDP) of Delhi at current prices was Rs 1,439.11 bn, which registered an annual compound growth rate of 12.72% over FY00. During FY08, the tertiary sector had the highest contribution of 79.05% in the GSDP of Delhi, followed by the secondary (20.26%) and primary sectors (0.69%). Moreover, Delhi’s per capita income at Rs 78,690 in FY08 was more than double of the national average, both at current and constant prices. The NCT of Delhi is divided into three areas for civic administration and these three areas work independently from each other: the Municipal Corporation of Delhi (MCD – 1,397.29 sq km), the New Delhi Municipal Council (NDMC- 42.74 sq km) and the Delhi Cantonment Board (DCB- 42.97 sq km).

Infrastructure

In Delhi, development and maintenance of infrastructure has been given prime importance to cater to the urban population’s demand; the urban population accounts for 93.18% (according to the 2001 census) of the total population of Delhi. In addition, the Common Wealth Games (2010), which are scheduled to take place in Delhi, will further act as a medium for further infrastructure development in Delhi. Delhi Integrated Multimodal Transport system limited (DIMTS), a joint venture company formed by the Delhi government and the Infrastructure Development Finance Company, has been set up as a ‘special purpose vehicle’ to tackle the problem of ineffective public transport delivery and to provide expert services in the field of urban transport.

There are nine major inter urban corridors connecting Delhi to Delhi Metropolitan Area and NCR towns and to the rest of the country. Delhi is also the nodal point for five national highways that carry large volumes of passenger and goods traffic. The Delhi Transport Commission (DTC), which is responsible for bus transport in the city, has developed the world`s largest eco-friendly bus service by converting all its 45,522 diesel buses (as on March 31, 2008) into CNG. Delhi is also a major junction on the rail map of India. There are four main railway stations - New Delhi, Old Delhi, Hazrat Nizamuddin and Sarai Rohilla besides container depots at Patparganj and Tuglakbad. Equipped with modern facilities and state of the art designs, Delhi Metro covers a total length of 74.56 km and has a frequency of 3 mins. The metro rail is expected to cover the whole of Delhi by 2010. The international and domestic air passenger movement in Delhi is catered to by the Indira Gandhi International (IGI) Airport and Palam Airport, respectively. The IGI Airport is one of the largest in India and it handles 22.84 mn passengers annually (FY09).

Industrial Scenario*

In terms of the contribution to Gross State Domestic Product (GSDP), financing, insurance, real estate and business services sector followed by trade, hotels and restaurants’ play a dominant role in Delhi. The trade and commerce segment in Delhi holds importance due to its significant contribution in terms of tax revenues and employment generation. Delhi has emerged as a major redistribution centre because of its strategic geographical location, and availability of good infrastructure facilities. The wholesale markets in Delhi deal in about 27 major commodities that include textiles, auto parts and machinery, stationery, food items and iron and steel (according to the Master Plan document 2001 of DDA).

Industries in Delhi

On analysing the sector-wise growth in GSDP, the contribution of the secondary sector (comprising manufacturing, electricity, gas, water supply and construction) was found to be increasing continuously. Large consumer markets and an abundance of skilled labour have aided this growth pattern. The capital goods industry had a predominant share (25%) in the industrial production of NCT of Delhi followed by consumer goods and consumer durable goods, each having a share of 18% during FY09; intermediate goods had the lowest contribution in total industrial production at 8%.

According to the Economic Survey of Delhi FY09, there are about 28 industrial estates / areas in Delhi that span an area of 4,647 acres, out of which 5 estates were developed by the industries department, 2 by Delhi State Industrial Development Corporation, 7 by cooperative societies and the rest 14 by the Delhi Development Authority. There are about 25,000 industrial units located in these industrial estates. The government has also acquired land for development of new industrial estates. As Delhi is a metropolis and the national capital, it places huge emphasis on encouraging hi-tech, sophisticated, exportoriented, small-scale industries. The small-scale sector plays an important role in the industrial development of Delhi. In general no prior registration is required to set up any small-scale unit, however, there are location restrictions for setting up a small-scale unit as they can be set up in conforming areas only. The small-scale industries of Delhi manufacture highlysophisticated engineering goods, computers, micro processor based systems etc. IT is a booming sector in Delhi`s economy. Delhi has two major IT/ITeS SEZs at Shastri Nagar and Shivaji Park, which have been approved by the Government of India as a sector-specific SEZ with a total area of about 22 hectares.

Industrial Associations in Delhi:

  1. Delhi Financial Corporation
  2. Delhi Khadi & Village Industries Board
  3. Delhi State Industrial & Infrastructure Development Corporation (DSIIDC)
  4. Tool Room & Training Centre
  5. Hi-Tech Vocational Training Centre
  6. Society for Self Employment, Flatted Factories
  7. Federation of Automobile Dealers Association
  8. Federation of Hotel & Restaurant Association of India
  9. Federation of Indian Chambers of Commerce & Industry
  10. Engineering Export Promotion Council
  11. All India Plastic Industries Association
  12. Telecom Industry Service Association
  13. Garment Exporters Association
  14. Indian Electrical and Electronic Manufactures Association
  15. Alkali Manufactures Association of India

Haryana

Gurgaon

Gurgaon is one of the fastest-developing cities, and is located in the south of Haryana. Spread over an area of 738.82 sq km it is an important and the most developed commercial/ business centre in Haryana. Gurgaon, which is a part of the National Capital Region (NCR) of India, has evolved over the past few years into an important outsourcing and manufacturing destination. According to the Economic Survey of Haryana FY06, the Gurgaon region ranked third among India’s major software export locations. Gurgaon has witnessed a rapid growth in real estate and construction industry fuelled by the high disposable income of consumers in the region along with easy availability of land. The commercial property has witnessed a boom mostly due to the IT, ITeS and other service industries.

Infrastructure

Gurgaon has emerged as the most preferred destination for private entrepreneurs. Its strategic location (32 km from New Delhi, located on the National Highway of Delhi-Jaipur road), close proximity to the Indira Gandhi International Airport, well-developed infrastructure in terms of roads and communication network and total electrification has aided in attracting investments from big multinaltional companies. Gurgaon Railway Station is one of the oldest and is situated on the Delhi - Rewari - Jaipur Railway line route. However, for long distance trains, people have to travel to railway stations in Delhi. The route of the Delhi Metro has been extended to cater to the Gurgaon district as well, which has further improved its connectivity with Delhi. A proposal is in the offing to provide a rail corridor to link the major satellite towns of Gurgaon, Faridabad, Bahadurgarh and Kundli with New Delhi.

Industrial Scenario

Well-developed infrastructure coupled with policy initiatives from the government has created a favourable industrial climate in this region. More than 400 large and medium-scale units and around 8,000 small-scale units operate in the Gurgaon district. In fact, Maruti Udyog Limited was the first company to set up factory in Gurgaon in the early eighties, which set the growth momentum for industrial development in Gurgaon. After Maruti many other multinational companies like Hero Honda Ltd, Honda Motors of Japan, Suzuki Motor Cycle and ancillaries of these automobile companies set up their base in the region.

Many major units involved in manufacturing telecommunication equipment, light engineering goods, electrical goods, software development, hardware, sports goods, rubber and plastics products, readymade garments, pharmaceuticals, terry towels, food items, air conditioners, shoes, pesticides, insecticides, agro based and food processing, leather as well as few companies in the field of bio-technology are operating in the district. A cluster of high-fashion readymade garments units has come up in the industrial area of Udyog Vihar, Gurgaon. The units operating in this cluster export products to many countries and also supply to several Indian brands.

Over the last few years, Gurgaon has emerged as the major hub for IT and. the ITES-BPO industry. There is an IT and Telecommunication Complex in the Electronic City in Gurgaon, which is spread over 40 acres. This complex has been planned for computer/ software export and is equipped with world-class facilities like earth station, teleconference, internet, e-mail service and other state-of-the-art communication services. There is also a software technology park allotted to software units within this area that occupies an area of 14,000 sq ft. The park also provides satellite communication links to the units located in the park. The IT policy by the Government of Haryana had provided a fillip to IT and ITES industry in Gurgaon. Moreover, the state government through its enterprise Haryana State Electronics Development Corporation Limited (HARTRON), has been undertaking various schemes and activities for the development of electronics and IT industry in a systematic and scientific manner in the state. Famous IT companies like Hughes Software, Tata Consultancy Service, Alcatel, HCL, Siemens, GE Capital, Silicon Graphics etc have their units located at Gurgaon. The software exports from Haryana increased from Rs 8.90 bn in FY00 to Rs 175.0 bn (approximately) in FY08.

Industrial Associations

  1. Business Process Industry Association of India
  2. Gurgaon Chamber of Commerce & Industry (GCCI)
  3. Gurgaon industrial Association (GIA)
  4. Udyog Vihar Industries Association

Future Development

To further boost the IT and ITeS industries in Gurgaon, Haryana plans to set up a Hi-Tech Habitat Centre with world-class facilities for IT, ITeS and BPO companies in the Electronic City, Gurgaon. The state government also plans to develop an auto parts industrial cluster in Gurgaon.

Faridabad

Faridabad, situated in the south-eastern part of Haryana, is the biggest urban agglomeration of Haryana. With a strong industrial base, Faridabad is one of the largest contributors to the revenue generation of Haryana. The industrial activity and expansion in Faridabad is attributed to the policy decision taken after independence to develop the surrounding regions of Delhi as a metropolitan region to reduce the population pressure on Delhi. Faridabad has the status of being a metropolitan town and has a Municipal Corporation since 1994. The Faridabad Municipal Corporation consists of Old Faridabad, Ballabgarh and NIT (New Industrial Township). The majority of workforce in Faridabad is in the tertiary/ services sector. According to the 2001 Census the workforce participation rate of Faridabad city is 31%

Infrastructure

The National Highway NH-2, (Delhi-Mathura Road) passes through the length of the city and is the central axis of the city of Faridabad. Further, NH-3 and NH-4 also pass through the city. Faridabad is connected to other states through three railway stations namely Old Faridabad, NIT, Faridabad and Ballabgarh. There is also an Inland Container Depot in Faridabad. The metro is connected to Indira Gandhi International Airport, New Delhi and Palam Domestic Airport, in New Delhi. The eastern peripheral expressway (Kundli-Ghaziabad-Palwal “KGP”) and western peripheral expressways (Kundli-Manesar- Palwal-“KMP”) passing through Faridabad are underway, which will facilitate faster movement of inter-state traffic besides connecting Delhi with all the Delhi Metropolitan Area towns and all National Highways around Delhi.

The projects that are in the pipeline and will further aid the infrastructure development of the region are; Badarpur Flyover, Six lanning of NH-2, Extension of Metro Rail upto Faridabad and Kalindi Kunj bypass providing easy access to Noida.

Industrial Scenario

Haryana is a hub for the automobile industry in India as important automobile centres are in Gurgaon and Faridabad. The main industries in Faridabad are light automotive components, engineering goods and metal goods. The major industrial production in the district, mainly represented by Faridabad city itself, is of tractors, motorcycles, tyres, switch gears, steel rerolling, scientific instruments, power looms, agriculture implements, JCB cranes, consumer durables, footwear etc. Haryana State Industrial Development Corporation (HSIIDC) is the nodal agency for industrial development of Faridabad.

As on 2006, there were 16 multinational companies, 809 ISO-based industries, 205 medium and large-scale industries and 399 small-scale units as per the records of the District Industrial Centre, Faridabad. Besides, there are also a large number of smaller industrial units, functioning from various locations including residential areas in the city. Overall, there are about 15,000 small, medium and large industries in the Faridabad - Ballabgarh Complex. It is considered to be one of the largest industrial estates - ninth largest industrial centre of Asia (2006). Many international/multinational companies like Whirlpool Corporation, Goodyear Company, Castrol Ltd, Larsen & Toubro, GKN Invel Transmission ltd, Asia Brown Boveri Group, Woodward Governer Company, Eicher Motors ltd, Escorts group, Nuchem Ltd operate in this area.

Many industrial units in Faridabad have collaborations with foreign countries and many are wholly-owned foreign companies. The products that are exported from Faridabad district are electric equipment, tractor, machinery, industrial units, helmets, tyres, footwear etc.

Industrial Associations

There are five major industrial associations in Faridabad that play a major role in the industrial development in the region. These associations are:

  1. Laghu Udhyog Bharti
  2. Faridabad Industries’ Association
  3. Faridabad Manufacturers’ Association
  4. Faridabad Small Industries’ Association
  5. Faridabad Chamber of Commerce & Industries>

Future Development;

HSIIDC is planning to establish an Industrial Model Township (IMT) in four cities in Haryana including Faridabad. These townships will include campuses for large industries, Information and Communications Technology (ICT) parks, industrial plots, flatted factories, residential colonies, labour housing, commercial and institutional areas, entertainment zones, educational and healthcare facilities etc. Around 500 small and medium enterprises in Faridabad, mainly auto components manufacturers, intend to invest over US$ 30 mn for technology improvement and capacity expansion in the coming years. The state government also plans to develop Light Engineering Industry Cluster in Faridabad (project cost Rs 727 mn) and the government will fund 75% of the total cost of the project upto a maximum of Rs 500 mn.

The regional plan 2021 of NCR has identified Faridabad as the location for wholesale trade of auto parts. This state-level agency plans to develop a alternative wholesale market for auto parts as a joint venture project. It also proposes to urge the government to grant auto parts a commodity status under the Specified Commodities Act, which will allow the industries in the region to avail the benefits meant for commodity dealers under the Act.

Policies-Haryana

The state government of Haryana has formulated different policies to foster the growth and development of the state The Industrial Policy 2005 of Haryana has the strategic mission to develop economic hubs through infrastructural initiatives, encourage public private partnership (PPP) in infrastructure projects, focus on economic activities enjoying comparative advantage in the state; in particular development of food processing industry, Electronics, Information & Communication Technology industry, promote mega projects particularly in backward regions, focus on development and support to the small and medium enterprise segment. The state government has also laid focus on infrastructural support for synergistic growth of key enterprises, for enhancing export competitiveness, creating investor-focused approach in administrative processes and bringing about efficiency, transparency and accountability by using modern technological and management solutions.

The state government has identified IT, ICT and ITES as a thrust area in recognition of its potential for exports, employment and wealth generation. The IT Policy 2000 had aimed to replace the traditional delivery system of public services with ITdriven systems of governance. This policy further intended to facilitate private domain initiative in e-transition of Haryana by providing critical infrastructure, systems framework and enabling environment. In order to encourage investment in the IT, ITES sector, the government has encouraged PPPs in setting up technology parks and other supportive infrastructure and services.

The Haryana SEZ Act 2005 aims to promote and establish large self-contained industrial townships, with world-class infrastructure. It has also promoted both public and private sector participation in an internationally-competitive and hassle-free environment for export promotion.

The Labour Policy 2006 of Haryana is focused on strengthening the conciliation measures for prevention and early resolution of industrial disputes. According to the policy, the Labour Department also aims to intervene proactively to avoid industrial mishaps, lay-offs, retrenchments and strikes.

Uttar Pradesh

Noida

Noida (the New Okhla Industrial Development Authority), constituted under the Uttar Pradesh Industrial Area Development Act, 1976, has emerged over the years as one of the largest planned industrial townships of Asia with worldclass infrastructure. Noida also forms a strategic industrial growth centre. It is an eco-friendly, pollution-free city with integrated township. Noida boasts of its excellent banking and insurance network, multi-speciality health care centres, availability of ample skilled labour and up to date facilities for education, R&D and technical training.

Infrastructure

The NH 2, Link Road, Kondli Road, Noida-Greater Noida Expressway, the Noida-Agra-Mathura Expressway under construction and the eight-lane DND flyover with toll bridge with state road transport bus services provides good connectivity with Delhi and the other neighbouring towns. Besides, the entire township has wide and long internal roads. Noida is well-connected with Delhi through flyovers, roads, bridges and an overbridge across the Yamuna River. It is located about 14 km from New Delhi Railway Station and about 35 km from Indira Gandhi International Airport. Moreover, facilities such as uninterrupted and adequate power supply, digital and optical fibre-based telecommunication provide a conducive atmosphere for industrial growth in Noida.

Industrial Scenario

Noida has a strategic location for industrial growth as it gives special attention to prioritised sectors. The IT industry in the NCR region is mostly concentrated in Noida and Greater Noida. Special area schemes like Software Technology Park (STP), Noida Export Processing Zone (NEPZ), were initiated in Noida to offer several incentives to entrepreneurs such as on-site customs clearance, warehouse with clearing and forwarding facilities, nationalised banks and post offices in the vicinity. However, theses areas are reserved for 100% export-oriented units only. STP in Noida, spread over 100 acres of land with state-of-the-art infrastructure, forms a strategic location for the development and export of computer software and professional services using data communication lines. NEPZ has been converted to Noida SEZ and presently has 141 operational units. This is the only land-locked SEZ in India, contrary to other zones that are situated in port towns. As an inland zone, NSEZ is primarily suited for manufacture of low-volume high value and skill-intensive products. The gems and jewellery and the electronics sector have a significant presence in this zone due to sector-specific facilities provided in this area. Noida SEZ provides excellent infrastructure such as power supply, efficient transport network supportive services, a global telecommunication network and trade-related facilities. Besides the Film city situated in Noida, has 21 plots covering 98,600 sq mtr, which is allotted to 13 film studios of renowned film and TV producers.

241 different types of industries are permitted in industrial areas developed by New Okhla Industrial Development Authority subject to certain rules and regulations. Due to its proximity to Delhi, Noida houses many big international as well as national companies like Agreeya Solutions, GlobalLogic, EXL, Birlasoft, Impetus, STMicroelectronics, MtronPTI, Fiserv, Adobe Systems, TCS, Moser Baer, CSC, Birlasoft, HCL, ATC Labs, T-Series, Panasonic, Samsung, Eveready, Adtel Software etc. The proposals for the further development of Noida include development of feeder roads, rail linkages, passenger and goods terminals, an Inter State Bus Terminal (ISBT), free trade and warehousing zone etc.

Industrial associations in Noida

  1. Cement Manufactures’ Association
  2. Greater Noida Industries’ Association (GNIA)
  3. Elcina Electronic Industries’ Association of India
  4. Greater Noida Industrial Development Authority
  5. Indian printing and Packaging and allied Machinery Manufacturer’s Association

Ghaziabad

Ghaziabad is a growing industrial city in Uttar Pradesh (UP) located about 19 km east of Delhi. The city houses the headquarters of the Ghaziabad district. The district of Ghaziabad has four tehsils - Modi nagar, Ghaziabad, Hapur and Garh Mukteshwar. The tehsil of Ghaziabad consists of two blocks Loni and Razapur. According to the Directorate of Economics and Statistics, the government of Uttar Pradesh, the Gross Domestic Product (GDP) of Ghaziabad district at current prices during FY07 was Rs 111.49 bn, wherein the manufacturing sector accounted for Rs 26.43 bn. The Net Per Capita Income at current prices during FY07 was Rs 279.07 bn.

Infrastructure

Ghaziabad is well-connected by road rail, and air. The nearest airport, Indira Gandhi International Airport, is located 45 km away. The Ghaziabad Development Authority has taken up the development of the metro rail projects that will connect different parts of Ghaziabad to the Metro Rail Network of Delhi. This project is to be completed in three phases.

Industrial Scenario

Over the years Ghaziabad and Noida have emerged as focal points of industrial development in Uttar Pradesh. Ghaziabad also forms an important export centre of Uttar Pradesh. According to the planning department of the government of Uttar Pradesh, the number of industrial areas per lakh population during FY08 stood at 0.31 in the Ghaziabad district. The major industries operating in Ghaziadabad district are electric machinery equipment and parts, machinery tools and parts, transport equipment and parts, plastic and petroleum, chemical and chemical products, metal products, basic metal products, food, paper & paper products & printings etc. According to the data published by the District Sankhyikiya Patrika of the Government of Uttar Pradesh, loans distributed to the private small scale sector in the Ghaziabad district during FY08 were Rs 9.16 bn, which was 28.5% higher than the previous financial year.;

Industrial associations

In Uttar Pradesh, the Department of Industrial Development is committed towards balanced industrial development through Directorate of Industries and various Corporations / Authorities such as Uttar Pradesh State Industrial Development Corporation (UPSIDC), Uttar Pradesh Small Industrial Coorporation (UPSIC), Uttar Pradesh Financial Corporation (UPFC), Pradeshiya Industrial & Investment Corporation of Uttar Pradesh Limited (PICUP), Satharia Industrial Development Authority (SIDA) etc. The Directorate of Industries is in charge of supervising the industrial scenario. It also acts as a catalyst for creating infrastructure for the development of heavy and medium industries through various Corporations / Authorities that include UPSIDC, UPFC & PICUP.

Other Industry Associations in Ghaziabad:
  1. Indian Industries Association
  2. Industrial Area Manufactures’ Association
  3. Northern India Textile Research Association

Policies- Uttar Pradesh

The state government has not only provided an overall policy relating to the industrial sector but also has catered to the individual needs of the sectors by formulating sector-specific policies such as IT Policy 2004, Food Processing Policy 2004, Biotech Policy 2004 , Power Policy 2003, SEZ Policy (2007).

Industrial and Service Sector Investment Policy 2004

Recognising the fact that to achieve all-around development of the state there is a need to accelerate the pace of growth in the fields of not only industry but also trade, commerce and services, the government has formulated the Industrial and Service Sector Investment Policy 2004. This policy aims to create conditions for balanced, harmonious growth of all segments of the industrial sector such as heavy, medium, and small scale industry, besides strengthening traditional industries. The policy aims at making the traditional industries competitive in terms of quality, technology, design, packaging and marketing. Under this policy the state government also endeavours to actively promote private sector participation in the industrial and economic growth of the state. Moreover, a facilitative atmosphere is also provided for promotion of exports and to enhance the competitiveness of exportable products. Under the policy, the state also strives to create a conducive environment to attract foreign direct investment and make Uttar Pradesh a leading destination for foreign investments. Strengthening infrastructure, incentives to entrepreneurs and industrial units are likely to be given due priority.

IT Policy (2004) – Identifying the vast employment generating potential of the IT services industry, the State Government shall actively promoted establishment of units engaged in IT-services (hardware/software based etc.) and IT-enabled services (call centres, medical transcription, BPO, etc.) and is also keen on providing technical know-how, infrastructure, marketing support and financial assistance. The initiatives also include a budget for IT activities, IT pool fund for e-governance, IT cities, IT parks, NIC infrastructure and promoting hardware industries.

SEZ Policy (2007) – In order to develop SEZs and to promote industrial and economic development, the government introduced the SEZ policy in 2007. The policy aims to provide exemption of taxes, develop world-class infrastructure facilities and rationalise/exempt legal provisions related to labour, electricity and environment.