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State of Business and Industries in Jharkhand: Challenges and Pathways for Growth

by Editor's Desk October 20, 2024

Team TrickyScribe: Jharkhand’s business and sectors have immense potential to drive economic growth and development. By addressing key challenges like infrastructure deficits, regulatory hurdles, skill gaps, and dependence on mining, the state can unlock new opportunities for industries and businesses. Strategic investments in technology, skill development, and sectoral diversification will be crucial in ensuring a qualitative transformation of Jharkhand’s economic landscape, making it a hub for sustainable and inclusive growth.

Jharkhand, known as the “Mineral Hub of India,” is blessed with an abundance of natural resources, including coal, iron ore, copper, uranium, and bauxite. The state’s rich mineral deposits have historically driven its industrial growth, making it one of the key contributors to India’s economy. Despite its potential, Jharkhand’s industrial landscape has faced several challenges that have hindered its development. This article explores the current state of business and industries in Jharkhand and suggests strategies for qualitative improvement.

Current State of Business and Industries in Jharkhand

1. Mining and Mineral-Based Industries

Jharkhand is one of India’s largest producers of minerals, with a significant presence in coal, iron ore, copper, and mica production. The state’s mining sector plays a crucial role in supporting the steel, cement, and power industries, which form the backbone of its economy. Major industrial hubs like Jamshedpur, Bokaro, and Dhanbad are home to some of the country’s largest steel and coal companies, including Tata Steel, Steel Authority of India Limited (SAIL), and Coal India.

2. Manufacturing Sector

The manufacturing sector in Jharkhand is dominated by large-scale industries in steel production, heavy machinery, and automobile manufacturing. Jamshedpur, famously known as “Steel City,” is a significant industrial center, housing Tata Motors, Tata Steel, and a range of ancillary units that supply components to these giants. However, the growth of the manufacturing sector has been limited due to a lack of adequate infrastructure and investment in newer technologies.

3. Small and Medium Enterprises (SMEs)

Jharkhand’s small and medium enterprises (SMEs) have the potential to contribute significantly to employment generation and economic diversification. However, these enterprises face challenges such as inadequate financial support, poor infrastructure, lack of skilled labor, and limited access to markets. Most SMEs in Jharkhand are engaged in traditional sectors like handicrafts, food processing, and textiles, which need modernization to compete in the global market.

4. Emerging Sectors

The Information Technology (IT) and service sectors are gradually gaining momentum in Jharkhand, particularly in cities like Ranchi. The state government has taken steps to promote IT parks and start-up ecosystems, but the progress is still in its nascent stage compared to other states like Karnataka or Maharashtra. Tourism, with its potential for eco-tourism and cultural tourism, remains largely untapped despite the state’s natural beauty and tribal heritage.

Challenges Facing Jharkhand’s Business and Industrial Growth

1. Infrastructure Deficit: The lack of proper infrastructure, including roads, power supply, and logistics, remains a significant bottleneck in attracting large-scale investments. Connectivity issues in rural and semi-urban areas further hinder the smooth movement of goods and services.

2. Regulatory Hurdles: Bureaucratic delays, complex approval processes, and stringent environmental regulations have made it challenging for new businesses to set up operations in the state. Simplification of these procedures is essential to create a more business-friendly environment.

3. Skill Gap: There is a mismatch between the skill sets of the local workforce and the requirements of modern industries. Most of the tribal and rural population lack formal education and technical training, which limits their employability in emerging sectors like IT and manufacturing.

4. Limited Access to Finance: SMEs and start-ups in Jharkhand struggle to secure adequate funding due to limited access to banks, financial institutions, and venture capital. This constraint restricts their growth and innovation capabilities.

5. Dependence on Mining Sector: The state’s economy is heavily reliant on the mining sector, making it vulnerable to market fluctuations and regulatory changes. Diversification into other sectors is crucial to ensure sustainable economic growth.

Suggested Points of Action for Qualitative Improvement

To transform Jharkhand’s business and industrial landscape, the following strategies can be implemented:

1. Infrastructure Development

• Enhanced Connectivity: Prioritize the development of road and rail networks to improve connectivity between industrial hubs and remote areas. Investing in logistics infrastructure will reduce transportation costs and facilitate smoother supply chain operations.

• Reliable Power Supply: Strengthen the power distribution network to ensure a stable electricity supply for industries, especially in rural areas. Encouraging the use of renewable energy sources like solar and wind power could also provide a sustainable energy solution.

2. Simplification of Regulatory Processes

• Ease of Doing Business: Simplify regulatory processes and reduce red tape to create a more conducive business environment. Implementing a single-window clearance system for project approvals can significantly reduce the time and effort required to start new ventures.

• Environmental Clearances: Streamline environmental approval procedures without compromising on ecological sustainability, making it easier for industries to comply with regulations while reducing delays.

3. Skill Development and Education

• Technical Training Programs: Establish vocational training centers and skill development institutes in collaboration with industrial stakeholders to bridge the skill gap in the local workforce. Focus on sectors like manufacturing, IT, and tourism to create job-ready professionals.

• Industry-Academia Partnerships: Promote partnerships between educational institutions and industries to align the curriculum with industry needs, ensuring that graduates are equipped with relevant skills.

4. Promotion of MSMEs and Start-Ups

• Access to Finance: Create a supportive ecosystem for SMEs and start-ups by improving access to credit through micro-financing schemes, venture capital, and government-backed loans.

• Digital Infrastructure: Develop digital infrastructure to help small businesses leverage technology for growth, market expansion, and operational efficiency.

5. Sectoral Diversification

• Focus on IT and Tourism: Encourage investment in the IT sector by developing IT parks and providing incentives to technology-based businesses. Promote tourism by highlighting Jharkhand’s natural and cultural heritage through strategic marketing campaigns.

• Agro-Based Industries: Leverage Jharkhand’s agricultural potential to develop agro-based industries like food processing, dairy, and horticulture, which can provide sustainable income to rural communities.

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October 20, 2024 0 comments

Business & Commerce

India to stand by Paris Accord, asserts PM Modi

by Editor's Desk August 24, 2019

written by Editor's Desk

Ashok Pathak | The TrickyScribe: Positions taken by world powers including the US notwithstanding, Indian PM Narendra Modi assured French President Emmanuel Macron of India’s firm resolve of standing by France and also the controversial Paris Climate Accord and making it a success while concluding his tour to France on Friday. “Twenty first century is all about Infra – India and France, said PM Modi while addressing the PIO community on the last day of his France visit.

“The character of the two countries is shaped by the shared values of ‘Liberty, Equality and Fraternity’. Whether it is terrorism or climate change, we have accepted our collective responsibility to protect the values of democracy from these dangers,” asserted PM Modi.

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Macron and Modi have urged all stakeholders to contribute to the success of Climate Action Summit scheduled to be convened by the United Nations Secretary General on September 23 and to encourage the global efforts towards combating climate change, Foreign Secretary Vijay Gokhale told mediapersons on Friday following the bilateral summit Thursday night. Gokhale also highlighted that PM Modi has assured Macron full support to French endeavours in all fields including Climate Change.

Acknowledging the ardent need for multilevel action – local, national, regional and global – France and India urged all stakeholders to contribute to the success of the Climate Action Summit convened by the United Nations Secretary General on September 23 and to encourage the global efforts towards combating climate change, according to the joint statement issued after the Summit.

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“There is a lot of lip service being done in the name of climate change in the world but there seems to be limited action on the same. Together, India and France took the initiative of the International Solar Alliance, today more than 75 countries of the world are actively involved in it working on the ground to restrict climate change,” PM Modi said.

India and France, which are contributing substantially to the process of sustainable development of Africa, have desired to cooperate to implement joint projects in the continent. Discussions are on for tripartite projects, particularly on the issues of solar irrigation and rural development in African countries and on developing skills through vocational training to sustain the development of the solar photovoltaic sector in Chad.

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The Indian and French statesmen reaffirmed their commitment to update their nationally determined contributions in a manner representing a progression beyond the current one and reflecting their highest possible ambition in line with principles of United Nations Framework Conventions on Climate Change (UNFCCC) and the Paris Agreement including equity and Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC).

India and France at Thursday’s Summit reaffirmed the importance of fulfilling the commitments under UNFCCC and the Paris Agreement and also urged all developed countries to scale up their contributions to Green Climate Fund in its first replenishment cycle in line with their commitments.

“Taking into consideration the goals of Paris Agreement and the recent findings of Special Report of the Intergovernmental Panel on Climate Change (IPCC) on the impact of global warming at 1.5 degree Celsius with reference to pre-industrial levels as well as the IPCC Special Report on climate change and land, India and France, under European Union, will develop by 2020 their long-term strategies for low-GHG emission development, taking into account their Common but Differentiated Responsibilities and Respective Capabilities, in light of different national circumstances, and reflecting the highest possible level of national ambition, in line with Paris Agreement,” according to the Indo- France Joint Statement.

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Under the framework of the G7 Summit in Biarritz and the United Nations Secretary-General’s Climate Action Summit on September 23, France and India will also support new initiatives aimed towards low-GHG development resilient to climate change notably through financial flows alignment with the Paris Agreement objectives and supporting the transition towards lower emissions of high emitting industries. The two countries reaffirmed their joint commitment to accelerate development and deployment of renewable energy.

India and France agreed that oceans play an important role in combating climate change, preserving biodiversity, and development, and, acknowledging the link between environment and security, decided to enlarge the scope of their maritime cooperation to address these issues. For sustainable use of marine resources, India and France will work towards ocean governance, including the Indian Ocean.

In the run-up to the 14th Conference of the Parties to the United Nations Convention to Combat Desertification, which will be held from 2nd to 13th September 2019 in New Delhi, and the 25th anniversary of the Convention signed in Paris in June 1994, France and India recalled the urgent necessity of sustainably transforming the use of Mother Earth. They desired to contribute to land restoration measures so as to fight poverty, inequalities and food insecurity on the one hand, and prevent and attenuate climate change and preserve or restore biodiversity.

These measures could be based on the recommendations of IPBES special report on land degradation and restoration and its global assessment on biodiversity, as well as the IPCC special report on climate change and land adopted in Geneva in August 2019.

In this spirit, India and France intended to promote the initiative set up by the G7 Environment Ministers in Metz for the development of sustainable networks for supplying agricultural products to combat deforestation, notably from the environmental viewpoint through recognised certifications.

Total Views: 2,51,250

August 24, 2019 0 comments

Business & Commerce

Saudi Arabia to reduce NREP Phase-II bidders to around 60 companies

by Editor's Desk June 27, 2019

written by Editor's Desk

Ashok Pathak | The TrickyScribe: Global law firm Eversheds Sutherland recently reported Saudi Arabia’s Renewable Energy Project Development Office (REPDO) has pre-qualified around 60 bidders for the 1.51 GW second round of the nation’s National Renewable Energy Program (NREP). An Eversheds representative pleading anonymity revealed that the information had come from one of its clients. REPDO sources are yet to confirm or contradict the report.

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The Eversheds briefing issued of late states a request for proposals related to the second round of the national program is likely to be issued the next month. First round of the NREP included the 300 MW Sakaka solar project secured in a tender by Saudi developer ACWA Power, which this week sold almost half the shares in its renewable energy project development business to the Chinese state-owned Silk Road Fund. With dozens of bidders reportedly pre-qualified for the second round of the program it would be a huge surprise if ACWA Power were not among them.

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As reported earlier in March that the second round of the program incorporates four larger projects. A 600 MW facility is scheduled to be built at Al Faisaliah and another 300 MW installation at Rabigh. With both of these sites near Jeddah, another 300 MW installation is planned in Jeddah itself and a fourth large scheme, in Al Jawf province near Qurayyat, will have a generation capacity of 200 MW.

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The Eversheds briefing described those projects as Category B, meaning they would be financed by borrowings. Three smaller, Category A schemes are also planned, to be financed by corporate finance as well as borrowing, according to Eversheds. Those projects will be a 50 MW installation at Medinah, a 45 MW facility at Rafha, in the Northern Borders province, and a 20 MW scheme at Mahad Duhab.

The Zawya Middle Eastern portal of news service Reuters in March reported a call for expressions of interest in the second round of the NREP had prompted 256 responses, with more than 100 of them from Saudi companies. Reuters stated the second round projects are expected to attract investment of around $1.5 billion.

It may be mentioned here that more than 100 domestic developers were interested in the seven-project, 1.515 GW generation capacity second round of the kingdom’s National Renewable Energy Program. That number has been reduced to dozens, according to a briefing note, and a request for proposals is expected within weeks.

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June 27, 2019 0 comments

Pocket-friendly renewables all set to replace conventional energy sources

Business & Commerce

Pocket-friendly renewables all set to displace conventional energy sources

by Editor's Desk August 18, 2018

written by Editor's Desk

The TrickyScribe: National Thermal Power Corporation’s (NTPC) auction to develop 2 GW of interstate transmission system connected solar PV projects attracted a low winning tariff of Rs 2.59 per unit amidst Indian government’s see-sawing on the 25 percent safeguard duty making renewables pocket-friendly.

During Tuesday’s auction, Acme Solar, Shapoorji Pallonji Infrastructure and Azure Power quoted the lowest tariff of Rs 2.59, followed by SB Energy, with Rs 2.60 per unit. Overall, Acme Solar – which recently said it would quit its PV pipeline unless safeguard tariffs were passed onto utilities – was awarded 600 MW, while Shapoorji Pallonji Infrastructure received 500 MW, and Azure Power, 300 MW.

SB Energy, a joint venture of SoftBank, Foxconn and Bharti Airtel, placed a bid for 2 GW of capacity, but was awarded just 600 MW in the end. The highest winning bid was submitted by Nisagra Renewable, at Rs 3.10 for 150 MW. This is 19.69 percent higher than the lowest tariff. ReNew Solar, meanwhile, was awarded 500 MW at Rs 3.09. The winning tariffs for this project are lower than the Rs 2.71 tariff reached during NTPC’s 750 MW auction, held this May. The rates are well above the record-low solar price of Rs 2.44 per unit, however, reached at the Bhadla Solar Park, Rajasthan, auction held in May 2017.

The NTPC issued the 2 GW tender in March 2018. It was oversubscribed by three times, with bids amounting to 6.2 GW submitted. Following the imposition of 25 percent safeguard duty on July 30, the company delayed the auction by a week, giving bidders time until August 13, 2018, to revise and resubmit their bids. As per ICRA, 3GW in Wind and 4GW in Solar will be commissioned in FY18-19. The government will further auction 20GW in the current and upcoming fiscals, said MD, Sun Capital Advisory Private Limited, Suresh Jain.

Meanwhile, renewable energy installations in Germany fed some 117bn kilowatt-hours of green power to the grid in the first half of 2018, up 10 percent year on year, according to the federal environment agency UBA. Wind energy installations delivered some 57bn kWh or close to half the green electricity produced in the first half of the year, followed by photovoltaics with 24bn kWh. Biomass and biogenous waste installations fed some 26bn kWh to the grid while hydropower contributed 10bn kWh hours.

Some 1633MW of onshore wind turbines were installed in the first six months of 2018, around 30% less than in the first half of 2017 when 2243MW went online. In 2017, however, Germany overshot the government’s 2.8GW target and installed 5GW of onshore wind. No new offshore wind turbines were registered with Germany’s grid regulator in the first half of 2018. The addition of 1359MW of new PV installations in the first half of 2018 was 58 percent above the 859MW installed in the same period last year.

In the light of the Berlin’s new goal of reaching a 65 percent renewable energy share in the electricity mix by 2030, the government should offer some 4GW of additional capacity in the short term for onshore wind and solar power as pledged in its coalition treaty, the agency said. Germany should aim at a gross expansion of 4.5GW onshore wind per year in the long term, expand the grid, and exit coal, the agency added.

Total Views: 2,95,770

August 18, 2018 0 comments