report-ease of doing business in ghaziabad (overview)

8/17/2019 Report-Ease of Doing Business in Ghaziabad (Overview)

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Roadmap for NewGovernment

Ease of Doing Business inGhaziabad

Issues and Challenges


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1. Ghaziabad at a glane

Ghaziabad is a large suburban district in state of UP in north India. Itcomes in the National

Capital Region of Delhi and is the section of Meerutdivision. It consists of ve districts headed b! Divisional Commissioner "ithits #ead$uarters at Meerut. %he #ead$uarter of the District is

at Ghaziabad.&or administrative purpose the district has been divided into 'subdivisions( ' %ehsils and ) Pancha!at *amities. %here are +' GramPancha!ats( ),- inhabited villages and / are uninhabited.

!ap of Ghaziabad

*ource0 P#D Research 1ureau( compiled from Ghaziabad Nagar Nigam

2s it is connected to the National capital( its temperature and rainfall aresimilar to Delhi. Ganga( 3amuna and #indon are the main rivers 4o"ingthrough the district and the! are lled "ith

"ater throughout the !ear.&orest area in the district is ver! negligible. #o"ever( forestation is going on.2round 5 la6hs plantation is done "ith 7558 achievement in the district.

#uman resources pla! a signicant role in the economic development of an

area. 2ccording to

the ,57) census of Ghaziabad district( it has a populationof '9(97('),.


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1eds in2llopathic and2!urvedichospitals

1an6s:Commercial1an6( Rural1an6 and Co;


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"oio eonomi onditions

%he average literac! rate of the district of Ghaziabad increased signicantl!

from +58 in ,557 to

+-8 in ,57). %he male literac! rate improved from+-./'8 in ,557 to /).',8 in ,57) "hile the female literac! rate improvedfrom )/.578 in ,557to 9-.+-8 in ,57).

#itera$ Rate of Ghaziabad". %artiulars &''1 &'1(

1. )verage litera$ 9-.+' +/.5+

i. Male +-./' /).',

ii. &emale )/.57 9-.+-

&. *otal literates 7(/--(+) (7,(,9'

i. Male 7(79/('9, 7(/77(-+

ii. &emale +7(,+ 7(77(/9+

*ource0 P#D Research 1ureau( compiled from ,57) census of Ghaziabad district

&. +b,etives

%he present stud! on ABase of Doing 1usiness in Ghaziabad0 Issues andChallenges aims at

6no"ing the strengths and "ea6nesses of the M*MBs

sector in Ghaziabad and to understand the issues and challenges faced b!M*MBs sector in the region.

%he specic obectives of the stud! pertain to0

7. %he industr! scenario and structure of M*MBs in Ghaziabad,. %he gro"th d!namics of the M*MBs sector in Ghaziabad.. %o 6no" the operational issues "ith regards to industrial

infrastructure( availabilit! of

credit( access to capital( availabilit! ofland and labor and procedural bottlenec6s etc(.

among others'. %o anal!ze the opportunities and challenges faced b! the M*MBs sector in Ghazia

-. Ghaziabad Industrial +utloo

Ghaziabad is a gro"ing industrial cit! "hich occupies an important place inthe industrial

development of Uttar Pradesh. %here are about 7+-9registered industrial units in Ghaziabad

"hile total industrial units scale upto )-)+ units.

Industrial +utloo in Ghaziabad".N Nature of /nits

/nits7 Registered industrial units 7+-9, %otal industrial units )-)+ Bstimated average number of


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"Nearest

2irport

! "or6er emplo!ed in small scaleindustries

7+,,7

' Bmplo!ment in large and medium Industries +,+'-

) Number of industrial areas 7,*ource0 P#D Research 1ureau( compiled from Report on District IndustrialPotential *urve! of

Ghaziabad ,57';7)

%he maor sectors that are prevalent in Ghaziabad are &ood( *oft drin6sand tobacco( Cotton teEtiles( Foolen sil6 and s!nthetic teEtiles( Paper andpaper products and printing( Rubber(

Plastic and Petroleum( Chemical andchemical products( Non metallic minerals( Metal products( Machiner! toolsand parts( Blectric machiner! e$uipments and parts and %ransporte$uipments and parts.

%he maor eEportable items of the medium and large scale enterprises are listed belo"0

!a,or E0portable items#arge sale enterprises !edium enterprises

• 2utomobile piston >

rings and

automotivefabrics(

• *teel Ingot(

• 1i;c!cle(

• &rozen Meat and 1eer(

• Pharmaceuticals and2!urvedic Medicines(

• Pol!ster buttons(

• Fhite Cr!stal *ugar• Blectronics parts(

• &ashion 2ccessories(

• PU &oam

• *tainless *teel Fires >

1ars( steel

ingots( bladesand allo! steel

• #igh > ?o" Carbon *teel Fires(

• Plastic moulded furniture(

• Craft paper

*ource0 P#D Research 1ureau( compiled from Report on District Industrial Potential*urve! of Ghaziabad ,57';7)


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Name ofIndustrial

)rea

#andauired

2inares3

#andNumber

developedof

2 in ares3

allotted

%lots

Numberof

4aant

%lots

%revailingRate %er

Number of "m

units in

2 in Rs.3

prodution

avi Nagar(

*ector;7+

?oha

Mandi

?


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%he large scale units have a cumulative investment of Rs. ,(779 crores andprovide emplo!ment to about 77(') persons.

E0isting #arge sale units in and around Ghaziabad".No %roduts !anufatured

Investment

2inrores3

Emplo$ment

7 3arn( &abrics( #ome &urnishing( 2utomotive&abrics( &ashion

2ccessories > #ome &urnishing ') )5

, Pharmaceuticals )5 ,,)

Melting( rening > casting;*teel Ingot( C.R. *trips >steel ingots( *teel billets( G.I. *teel %ubes > Pipe -5, 79-)

' #ot rolling > 1right 1ars Division 7 ,5)

) 1i;c!cle 7' 775

9 %!phoid accine '5 -)+ Blectronic items( Blectronics parts( %ape dec6

mechanism( DC Micro motors '+ 7',)

/ 2!urvedic Medicines( s!rups > #air oils )7 7)5

75 Pol!ster buttons 7) /5

77 Mutton( &rozen Meat( 2nimal fats >


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%he me d i u m e n t e r p r i s e s h a v e a c u m u l a t i v e investment of Rs.75+ crore s a nd prov id e emplo!ment to about ,(,,9 persons.

!edium "ale units in and around Ghaziabad

*ource0 P#D Research 1ureau( compiled from DIC Ghaziabad

%here are about //7 micro and small enterprises as "ell as artisan units inGhaziabad "ith an investment of around Rs. -55 la6h( giving emplo!mentto /)/- persons.

E0isting !iro 9 "mall Enterprises and artisan units in Ghaziabad

2gro based ,' 757 7+9Cotton teEtile 7 '5+ -9

Blectrical machiner! and transport 7, 9+ 7)7+

Bngineering units ,, )) 7)Metal based :*teel &ab.= 7- '+ 7-

Mineral based / 7)' )5)

Paper > Paper products ,9 7'7 7+7

Read!;made garments > embroider! /) ,5/ 7,9,

Repairing > servicing ') 75) +/7

Rubber( Plastic > petroleum based ,7 )5 7))*oda "ater , )55 755

FoodH"ooden based furniture , )- ,7/Foolen > sil6 based teEtile 5 775 7'9,


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Ghaziabad provides signicant opportunities for development of M*MBs.&ollo"ing are the list of potential sectors for M*MBs.

*ource0 P#D Research 1ureau( compiled from various sources

8. Infrastruture Development

%he Ghaziabad district of Uttar Pradesh has su@cient uncultivable and fallo"land "hich can be used for industrial development in the district. %hedistrict is fed b! a number of rivers and therefore( there is no scarcit! of "ater for industrial use in the district. 2s there is heav!

demand forelectricit! in the district( suppl! of po"er remains irregular and inade$uate.Moreover( the erratic po"er suppl! and fre$uent load shedding of po"er isthe maor hurdle for industrial development in the district. Given thisscarce po"er suppl!( the -('' !; %ower

%lant loated in Dadriprovides electricit! to Ghaziabad. %he plant uses modern technolog! andlatest technical 6no";ho"( "hich has enabled the plant to create po"er"ithout causing harm to the surrounding environment.

%he development of road transport s!stem is one of the vital factors for theindustrialization.

Maor transportation in district is provided b! both U.P. %ransport Corporation and other

PrivateHPublic o"ned vehicles. Delhi %ransport Corporation buses are also available in the

district. &urther( "ellreputed road transport organizations are also operating in the district andthereb! connecting "ith all big cities and other places and carr! goods to andfrom these places. In terms of road conditions( almost all industrial estatesare lin6ed "ith siE lane high"a! National #igh"a! ,'. It is also proposedthat the National #igh"a! No. ,' "ould soon be made siE lane high"a!.

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%otential for new!"!Es

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Plasticcontainers K#DPB(?DPB>PP

#DPB 1ags1leachingBarth:RMunit= forde;

colorizatio

n in the oilsector precisioncomponentmanufacturing for

defence(2viationand other

sectorsD!ing >PrintingUnits

2luminumBEtrusions

Pac6agingmaterialsKPlastic

*traps(Corrugated 1oEesetc

#eat*hrin6ingPol!thene Foodencrafts

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%o meet the special re$uirements of the entrepreneurs( specic clusters inthe *tate through *pecial Purpose ehicles :*Ps= "ith basic facilities of se"age treatment plant( common eLuent

treatment plant :"aste treatment

plant( pollution control plant= and testing labs are proposed

to bedeveloped s"iftl!. %he *tate is maor contributor to the total handicrafteEports of the countr!. %herefore development of industrial handicrafts andservices clusters is must for

promotion of handicrafts 2lso infrastructure(mar6eting( design and pac6aging facilities( "ill be

developed under variousschemes( such as; 2*IDB :2ssistance to *tates for InfrastructureDevelopment and BEports= scheme( M*B Cluster Development scheme( andMicro and *mall

%echnolog! Upgradation *cheme.

%o ma6e small enterprises viable in competitive scenario( it is proposed thatthe *tate government "ill provide assistance for setting up modernmachines( purchasing advance technolog!( obtaining 1I* :1ureau of Indian

*tandards= certication and $ualit! certication(

branding and obtainingtrade mar6 and intellectual propert! rights. 2 scheme has also beenproposed to provide support to connect the clusters set up b! industrialassociations and private developers( to other infrastructure facilities( suchas; approach road( po"er suppl! and "ater

suppl!.

(. Data )nal$sis

Ghaziabad provides immense opportunities for developments of M*MBs asthe eEisting set up( availabilit! of resources( mar6et potentialit! anddemand pattern provide immense scope for the ne" small scale industriesto develop. %he district is endo"ed "ith not onl! agriculture resources andrich livestoc6 but also has a high rate of literac! "hich can be tapped forpromoting industrial ventures in the district. %he presence of large andmedium scale enterprises also provide an opportunit! to the M*MBs aspurchaser of their products.

%he stud! pertains to anal!ze vie"point of a large share of M*MBs of "hich+58 are from small

enterprises( ,58 from medium enterprises and 758from micro enterprises. *ample surve!

anal!ses the vie"point of 7',M*MBs respondents of "hich maorit! of M*MBs :,58= are operating insteel sector follo"ed b! electronics > electrical :798= ( engineering :7'8=(auto

components > automotive :78=( drugs and pharmaceuticals :7,8=(agro and food processing

:758=( &MCG :/8=( and cooling to"ers :+8=.

%he surve! observed that M*MBs across various segments have postedrobust gross annual

sales gro"th of about ,78 during the last three !ears:annual average=. Nearl! '98 of

respondents a@rmed that gross annualsales gro"th has increased during the last three !ears "hile about ''8 of them said that gross annual sales gro"th has remained same "hereas it hasdecreased according to 758 of respondents. %he maor reasons responsiblefor boosting the gross sales gro"th of M*MBs in Ghaziabad has beenattributed to the rising demand( technological advancements and increasing

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PlasticMolding

Girth

gears(millhead(supportrollers(t!res( pinions(bearinghousing(rudderstoc6

Insulating

arnishInsulationMaterial

*pinni

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nitInductionfurnacebasedcasting

products

PaperIndustr!

Rail"a!s

Coach and"agon

parts

Pharma

UnitBlectrical >

%elecomcables Ground >Processed*pices

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overall size of the econom!.

Most of the respondents opined that the M*MBs sector is also integrating

"ith the "orld

mar6ets though slo"l!. #o"ever( onl! a small proportion of them :+8= ac$uire inputs from

"orld mar6ets. ,98 of respondentssurve!ed "hich cater to the foreign mar6ets reported an

increase in theireEports gro"th during the recent !ears.

cotton!arnHs!

nthetic!arn>

%h

readsCraf tpaper

1utterphase(s6immedmil6po"der

*ot

al


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Maorit! of the respondents felt that overall taE burden has increased inlast three !ears and most over burdening taEes have been found to beCentral *ales %aE and 2%. #o"ever( almost all the M*MBs sta6eholders felt

that the implementation of G*% is eEpected to reduce the

burden of taEation on them in the coming times.

2ccording to the surve!( maorit! of the surve! respondents :)/8= rel! ontheir o"n prots to

meet up their nancial re$uirements( though the! dohave accounts in nationalized( private and

foreign ban6s. 758 of therespondents revealed that their accounts are in Delhi branches of the ban6as the! are better than the Ghaziabad branch in terms of faster clearancesand speed!

processes.

&urther( though the district is near to Delhi and is "ell connected but theroads are not of good

$ualit!. %he N#;,' "hich connects Ghaziabad to a

number of cities of the countr! is choc6ed

"ith tra@c all throughout theda! and the road conditions in the industrial areas as "ell as high"a! arenot up to the mar6. 2bout +58 of the respondents said that there havebeen no

improvements in the infrastructure in Ghaziabad "hile ,58 of themresponded that the

infrastructure facilities have remained the same.

"urve$ Response on Infrastrutural Improvement 2in


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7:< higher than power tari>s in /ttarahand and 71s in @imahal %radesh maing it less viable for businesses in/ttar %radesh.


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"tateAwise average power tari> 2in paise?

".No Name of the state &'18A

7 Maharashtra +79. ++7./

, Uttar Pradesh 9).9 +9.

. %amil Nadu +5,.5 +).+

' 1ihar )/.) 9+7.7

) Fest 1engal 9'7.) 9)5.'

9 har6hand 95.7 9,.,

+ arnata6a )/). 975.7

/ Guarat )-7.9 95+.

- Punab )/5.9 )/9.9

75 Raasthan '+'. )/,.,

77 Madh!a Pradesh )9.' )/5.9

7, #ar!ana )+'.5 )+.5

7 erala )+.5 )9+./

7' 2ssam )+ )+

7) 2ndhra Pradesh )'9.) ))./

79 Chattisgarh '+5.5 '/5./

7+ #imachal Pradesh ',,. '5.+

7/ Meghala!a '9.+ ',-.

7- Uttara6hand '7'.7 '7.'

,5 ammu > ashmir '5.- '5.-

*ource0 P#D Research 1ureau( compiled from PlanningCommission

Note0 Data for Delhi and


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worfore2::


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!a,or operational problems faed b$ Ghaziabad !"!Es 2in


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senario= man$ large sale units have shut their plants inGhaziabad and shifted to other parts of the ountr$ where thegovernment provides ertain inentives. It has also been reported

that in the last $ear= around

:A1' steel furnaes have shut down outof around &( steel furnaes.


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6. Conlusions

Micro( small and medium enterprises have a ver! special and vital role inthe Indian econom!. M*MBs nurtures rst generation entrepreneurship andalso create immense emplo!ment opportunities at a lesser investment.

%hough Ghaziabad houses man! big and small industrial

units( the M*MBsand particularl! the micro units face a "ide range of operational problems.

%he M*MBs sector of the district faces some of the challenges such as highpo"er taris and

fre$uent long hours po"er cuts( lo" access to ne"technolog!( lac6 of s6illed manpo"er( inade$uate infrastructure facilit!( poorla" and order situation and regulator! issues related to taEation( labourla"s( etc.

a3 Infrastrutural deitsAA Infrastructure pla!s an eEtremel!important role in industrial

development of an! stateH region.


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";+* anal$sis of !"!Es in Ghaziabad

"trengths ;eanesses

• Close proEimit! to national capital

• 2vailabilit! of cheap labour force

• ?o" cost of land

• Poor infrastructural facilities

• #igh costs of doing businesses

• %echnological obsolescence

+pportunities *hreats

• Bmerging econom! >eEpansion of consumermar6et

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report-ease of doing business in ghaziabad (overview)

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