World Business Times Insight: Uttar Pradesh, India
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The heartland of India awakes Find out the agenda of UP’s tech-savvy CM, Akhilesh Yadav
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Star of the show Roads, rail and the development of ports spell a new age for UP
Uttar Pradesh
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Female empowerment UP Government promotes gender equality
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January 26, 2015
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Unlimited potential Enriched with culture, art, industry, and tourism, India’s state of Uttar Pradesh has long been a land of opportunity with unlimited potential. Best known for being home to one of the seven wonders of the world, the Taj Mahal, Uttar Pradesh also accounts for the largest population in India making it a force to be reckoned with. Under the tutelage of the nation’s progressive and youngest-ever Chief Minister, the state is entering a new era of opportunity and is set to make quite an impression on the world stage. Timothy Walters reports IT WOULD seem that the stars have finally aligned for India, as the potential of the emerging market, which had been suppressed for so long, is finally starting to be released. Even though it has been a long time in coming, India finally has the political, and economic willpower to take the bull by the horns and show the world just what it has to offer. It is one of the only BRIC countries – which includes Brazil, Russia and China – expected to accelerate in the coming year. Brazil is teetering towards a tumbling economy with a negligible growth rate of 0.1 per cent in the third quarter of 2014. Russia is recording high interest rates, a vastly devalued currency and has few friends. China’s central bank is locking in stimulus measures to reboot the economy after a sharp slowdown and South Africa is trying to narrowly avoid the third downgrade in a year after ratings agency Fitch kept its rating at BBB in midDecember. India however appears poised for a different story thanks in part to its election of a pro-business Government in mid 2014. The will, the way and the means are there, which is why over the past year money managers have poured $16.5 billion into Indian stocks, the most of any developing country as tracked by the Institute of International Finance. In Mumbai, the financial capital of India, there’s smiles all round. The surging economic growth, profit expectations and a surprise move by the Reserve Bank of India (RBI) on 15 January of a 25 basis point reduction in interest rates, have pushed the Bombay Stock Exchange index, the Sensex, almost on a straight line upwards across 2014. It started the beginning of 2014 at 21,140, and earlier last week was trading above 28,000 – a significant rise. The International Monetary Fund is being bullish expecting growth in India to reach 6.4 per cent this year from 5.6 per cent last year. According to a report by the World Bank published earlier this month, they believe 2015 could be the year that India turns the corner, posting growth of around 7 per cent. In the shortterm, low oil prices are likely to increase GDP growth, ease the pressures of India’s high current account deficit and
INDUSTRIAL DEVELOPMENT Uttar Pradesh has reported a significant increase in its share of proposed industrial investments in the Northern Region of India as of October 2014. While the state garnered a 22.2 per cent share of investments in the entire year of 2013 the corresponding figure jumped to 42.2 per cent during the first 10 months of 2014. FOREIGN DIRECT INVESTMENT The cumulative foreign direct investment (FDI) inflows from April 2000 to October 2014 amounted to $418 million (including Uttarakhand and excluding National Capital Region). For the period April to November 2014, FDI inflows amounted to $46 million.
Source: India’s Department of Industrial Policy & Promotion GDP GROWTH RATE COMPARED TO REST OF INDIA (%) 2010 to ‘11 2011 to ‘12 2012 to ‘13 2013 to ‘14
UP 7.9 5.6 5.9 5.1
India 9.5 6.3 4.5 4.9
FDI: A new era dawns for UP WITH all of the development planned and underway in Uttar Pradesh (UP), there is ample opportunity for investment partners to come on board. The state has a great partner in the Indian federal Government, who is associating in much of UP’s expansion story, but inevitably there are significant investment opportunities for foreign players hoping to get a seat at the table at one of the most exciting regional growth stories around today. Opportunities abound for investment in traditional industries like food processing and tourism but the list of other areas ripe for foreign
As the world marches toward forging economic partnerships with this emerging economy the vast opportunities lay in its potential. Sectors such as healthcare, education, sanitation, security, technology, infrastructure development and women’s issues are in need of attention. For a country as vast and varied as India inevitably tackling these issues is most effective at a regional or state level, which is why Uttar Pradesh (UP) is rapidly being seen as a dynamo for the nation. With its persistent focus on undertaking initiatives to bolster development and promote progress, UP is determined to establish itself as an investment destination of choice for the global world. Geographically, Uttar Pradesh lies in the northern part of India and is nestled between Rajasthan to the west, Delhi to the northwest, Nepal to the north, Madhya Pradesh to the south and Bihar to the east, with the city of Lucknow as its administrative capital. Uttar Pradesh is the largest tourist destination in India that is home to the
With every effort being made to simplify the investment process, it’s no wonder the foreign direct investment climate in UP is heating up. Paul McNamara reports direct investment is exhaustive including IT, agriculture, services industry, crafts, hospitality, energy, infrastructure and real estate. To help change the perception of India being a country blighted by poor bureaucratic inefficiencies and prolonged delays the Government of UP has devoted time and energy to stripping away the red tape that is seen to impede investment and has worked to create an efficient, effective and simplified system for investors.
the results of these efforts can be seen everywhere in the state. One of the most significant developments implemented by the Chief Minister (CM) is the creation of the Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) to oversee the development and planning of a new road network that will help to increase connectivity, pivot the state into a different league of industrial and commercial development and increase its competitive viability.
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iconic and world-renowned Taj Mahal. With a glorious history as the land of Rama, Krishna, Buddha and Mahavir there are countless shrines, temples and pilgrimages that UP has to experience. The basic statistics make for revealing reading: it is the fourth largest Indian state by area and has a population of around 200 million, making it the most populous state in India. Hindi is the official language and the state has a GDP of $77.7 billion, growing at a compound annual growth rate (CAGR) of 6 per cent between 2009 and 2014, with agriculture at (22 per cent), industry (21 per cent) and service industries (57 per cent) being the main contributors to its economy. But the dry statistics only hint at the potential and opportunity of a state poised on the cusp of a significant developmental phase. Under the aegis and leadership of a young, determined, tech-savvy and ambitious Chief Minister (CM), foreign investors are now looking at the state with renewed interest. The progressive CM has made a concerted
On the road to progress FOR most of its history Uttar Pradesh (UP) has been largely an agrarian society with well-developed farming and dairy sectors that have traditionally catered to a small local or regional market. In the past, the economic development of Uttar Pradesh has undoubtedly been held back by the lack of core infrastructure including roads, rail and power networks. In an effort to focus on growth opportunities for the common person and to create UP as an investment hub the Samajwadi Government has been tackling infrastructure as its main priority since it assumed office in 2012. Almost three years later
Uttar Pradesh Chief Minister up close AT THE helm of India’s most populated state, is Akhilesh Yadav, the youngest Chief Minister (CM) to hold office in India. Prior to leading the Samajwadi Party (SP), a socialist party dedicated to uplifting the poor, to victory in 2012 Akhilesh served as a three times Member of Parliament. It would seem that politics runs in the veins of the tech-savvy 41-year old, as he is the son of Mulayam Singh Yadav the founder of SP and the late Malti Devi. From fighting for farmer’s rights in the 1950’s to creating the political party in 1992, Akhilesh’s father Mulayam, or Netaji as he is affectionately called by those in political circles, has served as CM of Uttar Pradesh (UP) three times and as Minister of Defence for India from 1996 to 1998. At present he is serving as a Member of Parliament in the lower house, the Lok Sabha. Like his father before him, Akhilesh champions social empowerment for the poor but has combined that with an economic focus of creating jobs, building schools, constructing roads and developing essential infrastructure. All vital elements to improve the lives and well being of the rural poor, farmers, workers and down trodden members of society for which he, his father and party are staunch advocates. Many within the state believe Akhilesh’s education as a Civil Environment Engineer in India and a Masters in the same field from Australia have contributed to his political work and initiatives on development. Akhilesh is a doting husband to his wife Dimple Yadav, who was recently elected as a Member of Parliament, and an equally doting father to their three children, 13-year old Aditi and 8-year old twins Arjun and Tina. It would seem the young leader has perfected the art of managing multiple hats as a CM, party leader, husband, father, son, and friend. Perhaps most strikingly, Yadav is seen as someone who is calm, cool and collected regardless of the situation. Despite his upbringing as the son of one of the political dynamos of the country Akhilesh is viewed as an everyday person who empathises with the man on the street. He has made accessibility and advocacy for the poor a key hallmark style of his political leadership. Akhilesh has created an open door policy for the public, the bureaucrats, party officials and business and community leaders and uses this as an opportunity to listen and learn of their needs, and concerns. As a politician he is seen as a young, energetic and visionary leader who has worked his way through the grassroots. His public persona is perhaps best summed up by Dr. Roshan Jacob, a female district magistrate in UP, who says, “He is very optimistic, dynamic and a development oriented person. He is also very inclusive.”
Source: Central Statistics Office of India
help bring down inflation. The country’s changing fortunes illustrate how investors are eager to pile into the nation’s promise to unlock faster growth, at a time when most developing markets are slowing and wealthy economies are sluggish. For money managers who have billions to invest on behalf of large institutions, India may be one of the last developing economies of its size that can offer steady, high flying returns. And it’s not hard to see why. As the largest democracy in the world, with a population that tops 1.25 billion people, India is a powerhouse both in terms of its population and its potential, and as the seventh largest country in the world it is far from homogenous. On one hand India is home to a significant number of the world’s billionaires and on the other estimates show a third of the population is unable to read or write. Every state, city and village is home to millions of people with differing religions, traditions, cultures, languages, needs and varied economic realities.
effort to bring world-class infrastructure, industry and development to the state and to establish it as a global investment destination. Announced first in a budget speech for 2013-14, the Lucknow Metro Rail Project is a step towards ensuring greater transport connectivity for both its citizens and those wishing to do business. The mass rapid transit system envisaged is thoroughly futuristic and is set to be convenient, safe, fast, reliable and cost-effective. The Metro Rail Project is also set to redraw the entire development map of the city of Lucknow and catapult it into the next league of economic, social and political development nationally. To bring the project to life, the Lucknow Metro Rail Corporation has been set up as a 50/50 joint venture between the Government of India and the Government of Uttar Pradesh with funding for more than half of the project through senior debt from multilateral and bilateral agencies. This developmental project is running in tandem with another infrastructure project an Expressway from Agra (city of the Taj Mahal) to Lucknow. This freeway project is set to give a fresh boost to the pace of progress in the state as it facilitates the development of the myriad of small towns and villages along the route of the expressway. The project is forecast to double the pace of the state’s development, triple the size of its economy and attract substantial inward investment into Uttar Pradesh. The man at the helm and championing change in the state of Uttar Pradesh is Akhilesh Yadav, who in 2012 entered the history books as the youngest chief minister that the country ever had. It has been his persistence in implementing ideas and initiatives for prosperity of its citizens, reforms for governance, and opportunities for national and international investment, that has seen the fortunes of Uttar Pradesh rise. Educated in both India and Australia, well spoken in both Hindi and English, Akhilesh is seen as a new generation of young leaders who is taking Uttar Pradesh and its people to greener pastures.
UP is presently seeing a massive infrastructure shift with the most impressive projects undoubtedly centred on roads, rail and power. This is the face of the future. Victoria Shah reports
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26 January 2015
The heartland of India awakes Akhilesh Yadav, Chief Minister of Uttar Pradesh, is a man on a mission for his people, his state, and for his nation. It’s little wonder that he is deemed a visionary, who is determined, motivated and connected to the grassroots. Paul McNamara finds out his real agenda
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HE challenges facing Uttar Pradesh (UP) are both exciting and daunting. Trying to bring the state into the modern world with all the myriad of opportunities that it presents is a massive undertaking indeed. It would be easy to overlook how difficult a task it must be to become the modern face of politics in a nation as steeped in tradition as India. But it is a challenge that Yadav has taken on with boundless enthusiasm and energy and a skin that is far thicker than his tender years would suggest it should be. The keen cyclist, cricketer and football enthusiast is used to obstacles and since being in politics used to criticism. It is the Indian way: stoicism in the face of carping naysayers. When asked about the criticisms and daunting tasks at hand Yadav in his calm and cool style simply smiles and says “it comes with the job. My only goal is to focus on the work that needs to be done for the people and my state.” Despite the challenges and criticism Akhilesh has a relentless determination to keep moving forward and working on behalf of the millions who have put their faith in him. His vision for UP over the next three to five years is what allows him to keep soldiering on. “I was elected in 2012 by people who wanted their Government to work for them. Prior to that the Government was of a different ideology. They were more focused on wasting money on memorials, parks and the like. When we came into power, we had an agenda, a manifesto that we had promised to the people of UP so I had a very clear mission to implement the manifesto of our Samajwadi Party. When I presented the first budget in the house, I had the opportunity to outline policies that were very pro-poor.” Yadav is determined to not fall into the same trap of politicians making promises and not keeping them and seems equally determined to deliver on his preelection commitments. “Our Government budgets have all promised that the maximum amount of funds will go to the poor and help the farmers. There were other schemes in the budget also covering the social sector despite the fact there was less money available to me than the previous administration had. The budget was limited. In the first budget presented I tried to deliver everything that was in my election manifesto. That was the big challenge.” With a genuinely different agenda from that of his immediate predecessor and both an old guard within the party and a burgeoning bureaucracy resistant to change persistence, determination and hardwork have been the only realistic avenues open to Yadav. Breaking new ground has made him as many enemies as it has friends. Some of his plans have been bold indeed: “We decided we would make irrigation free for farmers. And there was a laptop scheme where all students in UP who passed grade 12 would get a laptop from the state Government. Education is key to our state’s success. Finding so many laptops was a challenge in itself, but we had an international tender and HP won. We distributed 1.5 million laptops within a nine-month period. That was the biggest tender HP had ever had anywhere in the world.” Initiatives such as providing IT hardware to students is something that most progressive western Governments could not afford to undertake and yet UP became something of a trail blazer and pulled off a major coup with HP as a partner in the process. This education and technology initiative was an indication of the progressive and visionary thinking of this tech savvy young Chief Minister. One of his sharpest areas of focus, however, has been on improving infrastructure. “Funds from the budget were also given for infrastructure projects like highways and a feeder project that would distribute separate power to the industrial and agricultural sectors. This involved a lot of spend on substations. In the health sector, we had to make medicines cheap and affordable for the poor, so we have also invested in that,” says Yadav. If this sounds rather idealistic and as if Yadav is simply trying to make the world a better place, or at least UP a better place, then that would be the case because he is. He is persistent, patient and passionate about improving the lives of the people of UP and empowering those less fortunate with the tools and resources to succeed. “UP is the biggest market in India,” says Yadav. “We have a population of 200 million people. It is the heartland of India and we produce the best wheat, milk, potatoes and vegetables. Our youth population is huge, 65 per cent of the population is under 35 years of age. The challenge is to have the best infrastructure: this is an area that is lacking at present. With good infrastructure, the other sectors will follow: industry will grow, agriculture will grow, and people will get jobs. It will all flow.”
Yadav is making sure that he has all of his ducks in a row with infrastructure, supporting industry, supporting education, supporting agriculture and tourism. “The challenge was how to develop infrastructure in UP so I took out money from the budget and prioritised roads and now we are building four-lane highways, and building the longest expressway in India that will connect Agra with Lucknow. We are connecting all the cities in the 75 districts in UP with four-lane highways,” says Yadav. Great roads and railways would be of little value unless there were people and industries to use them and this is the next focus of Yadav’s Government. “The second biggest focus has been power, followed by agriculture through organised farmers’ markets. There was a lot of wastage because farmers were disorganised and this meant higher prices. We are managing assets and people to help organise this,” he says. It could be seen as a dream scenario: a big home market and a well-educated labour force but there is a sense that nothing is ever very easy in India. The trick seems to be in carving a different kind of path that plays to the strength of the state and turns a deaf ear to critics and cynics alike. Yadav remains positive throughout: “UP can grow faster than other states because we have everything. We have fertile land; we have more universities, and more medical centres. We have huge reserves of human resources. If I put all the sectors together then we can build something great and this will lead to opportunities for international companies to come and do business here, ” How did Yadav develop his leadership style and overcome the resistance to change that he comes up against? “I am a very simple leader. I ride a bicycle. I spend time with the people because that is the strength of democracy. Everybody wants change. All types of media are now here from TV to social media and people are demanding change. I have seen what the west has done and if we can learn from this then we can achieve similar results in UP,” Yadav says. “Previous Governments were too involved in social structures and negative politics and I am trying to bring a focus on development and positive change. I am showing people that if the development is there, then growth will come automatically. When I show them what has happened overseas it helps them to buy into the vision and want to be part of it and change.” In the west it is easy for politicians to lose sight of the plight of the needy because they are often few and far between. But in a nation like India that is really only at the start of its growth curve there are constant reminders of the need for change. “When I look around and see so many people who don’t have houses, and can’t buy good clothes, they are still poor. This makes me determined to work for them and for my party. If I am in power then I know that I can help poor people. With small efforts, their lives will change. That is what motivates me,” says Yadav with that characteristic fierce resolve.
UP can grow faster than other states because we have everything. We have fertile land, we have more universities, more medical centres. Yadav is no stranger to politics and comes from a family with a track record in Government. His father is none other than Mulayam Singh Yadav, whose political career spans almost 50 years having served three times as the Chief Minister for UP, as well as India’s Defence Minister. Despite some commentators saying that Yadav junior is somewhat standing on the shoulders of a political giant, Akhilesh has emerged from his father’s shadow and is very much his own man. Many in India’s political circles give Akhilesh credit for taking his party to victory in the previous election. Akhilesh is fully aware of how the political scene has changed since his father was CM. “My father started very early in politics and he had no prior experience since his father, my grandfather was
a farmer. He went from that point to become Defence Minister for India. He worked hard and also tried to help poor people all the time and that became his strength. His focus was on rural India but times have changed and urbanisation has taken place so I am trying to strike a balance between urban and rural. People living in both environments need support from the Government,” he says. Striking a balance between urban and rural is only one of the juggling acts that Yadav has to be proficient at. “Farmers need water, electricity and medical support. Urban dwellers have different priorities. We are focused more on villages because if they grow then their purchasing power increases and the economy will boom.” Despite the picture of relentlessly positive development, a very strong cultural bias exists in India and in UP of a women’s role in society and treatment as second-class citizens. While this kind of narrow-minded thinking is hardly unique to India and the subcontinent, it does pose real developmental challenges for all modern Governments, especially those in fast-developing regions. Yadav is acutely conscious that issues impacting and affecting women such as cultural and traditional bias, safety and security, education and employment are not ones that can be solved overnight. “Women’s issues will always remain. I need to keep trying and to bring positive change. In UP and in India, incidents have happened which made people angry with the Governments. In UP if any incident does happen then it is highlighted in a big way. The media doesn’t focus on remedial steps we implement or actions I take they only focus on the negative events. I try and take immediate and stern action against any incident against women that I become aware of. I am a father of two young girls and the safety and security of women in my state and my nation is important to me.” So what has Yadav done in practical terms to start solving these problems? “I have started a number of initiatives to tackle these problems such as the phone hotline 1090. Any female who gets a threatening or inappropriate telephone call, message, email or is being harassed in any way can call 1090, file a complaint and there will be immediate action. Full support of the police and the Government is provided. I am very proud of this helpline, as it
has helped thousands of women in distress. This helpline is a model for other states and other nations,” he says. Even though initiatives such as the 1090 helpline address the issues once they have occurred, efforts need to be made to stop them from happening in the first place. “The second major step lies in educating society and we have already implemented projects to empower and support women. We have introduced a pension where we give 500 rupees to the female of the household. This pension used to be given to the head of the family but I have changed that to make it payable to females only. I have supported education for women as well as giving financial support to them by making education free for all girls from underprivileged families. They will also be given 30,000 rupees if they pass grade 12. Any girl from a poor family who wants to further pursue an engineering or medical education will get support from the Government. We also give them financial support for their marriage of 20,000 rupees.” Another endemic problem that UP, like the rest of the nation faces, is corruption. Again Yadav is realistic: “I cannot finish corruption altogether. I can reduce it. Every time I have heard of corruption I have taken action.” And Yadav is certainly a man of his word and takes no prisoners; back in November he sacked 70 persons holding the Minister of State (MoS) rank allegedly for non-performance and serving their own interests. Yadav is adamant that he won’t let corruption affect potential overseas investment. “We do not let it stand in the way of foreign direct investment. We have set up a special cell for investors; we have introduced a system of single-window clearance for businesses that want to set up here. Full support is given. That is the main aim. We can assure them of security and speedy decisions and this has already led to increased foreign investment in Agra, in Lucknow and elsewhere.” Job creation is a natural part of the UP growth story. “In the health sector all the way from doctors to paramedics, we have created jobs. Over 30,000 young people have been found new jobs in one Government department alone. I have started police recruitment that has led to 40,000 jobs. I have employed another 20,000 teachers. Altogether
around 300,000 youths have been employed in the past two years since my Government has come to power. We are focusing on the youth of the state and opportunities for their success.” With our interviewing drawing to a close I find myself having distinctly warmed to the young CM. He has been sincere, open, frank and earnest in his answers and seems genuine in his priorities to improve the lives of those less fortunate. He comes across as a man on a mission who is dedicated and determined to make a difference with not a nuance of wanting to enrich himself, which in India makes him an exception to the norm. He is humble and sincere despite the magnitude of power he possesses. He is also fully aware of the mammoth task he has taken to hand and despite the media backlash he receives, he remains positive and focused on working for the people of his state and bringing forward change, efficiency, accountability, transparency and governance reforms. Akhilesh seems to have developed a unique ability to connect with the masses and party members both young and old. Even though progressive in his thought he is acutely aware of the challenges and struggles of the people in the state he leads. His accessibility and availability are key to his success giving him a continuous perspective of what ideas, programmes and policies need to be implemented. Only time will tell if this dynamic young leader is successful but at present he is flying the flag for UP on the world stage and in the process is making the rest of the world stand up and realise that UP has more to offer than just sight-seeing at the Taj Mahal. To unwind Akhilesh is known to turn on the iTunes shuffle and relax listening to his favourite musicians, among which include Guns N’ Roses, Bon Jovi, Bryan Adams and Metallica, A.R Rahman and Mehdi Hasan. Akhilesh’s other hobbies include football, cricket and cycling. The latter of which played a key role in his ‘energetic’ election campaign. Some say that Akhilesh has learnt his politics while riding his bike from one village to the next on the dusty ‘kuchcha’ roads of the state’s heartland. Earlier this month he was quoted as saying, whilst taking part in the Cycle Marathon at Saifai Mahotsav, that, “Both life and politics are like riding a bicycle. One has to maintain balance and keep on moving.”
UTTAR PRADESH 3
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FDI: A new era dawns IT
Continued from page 1 Vikramjit Singh Sahney, an entrepreneur and honorary Consul General of the Republic of South Africa committed to strengthening commercial and economic relations between India and South Africa recently stated, “With the leadership of the current Chief Minister, the infrastructure and developmental projects underway, and the sheer size of the population Uttar Pradesh is a prized possession and an incredible window of opportunity for any investor.” With the creation of a single-window system UP has ensured that investors can submit the required regulatory documents at a single location and obtain all necessary permits and clearances within this single Government department. This single window clearance system has been initiated and implemented with the vision and desire of the Chief Minister (CM), Akhilesh Yadav, to attract international investors and foreign direct investment (FDI) for the many opportunities that exist in the state. The initiative goes under the name of Udyog Bandhu and can be accessed at http://nm.udyogbandhu.com Jiwesh Nandan, Principal Secretary, Information Technology & Electronics for the Government of Uttar Pradesh, says, “The first thing investors can do is to use our telephone helpline or send an email to us. We would then nominate an officer to
look after them. Once we have established that they are a serious investor I would personally call them and have a discussion to establish which areas interest them, when they want to make the investment and how much they want to invest and discuss if there are any potential areas of collaboration with the state.” The aim of this process is to ensure that time wasters are removed from the equation as early as possible so that serious investors receive timely and personal attention as FDI is very important to Uttar Pradesh. “We then let you know what sorts of documents you need to fill out. Most of these documents are available online and it should take about 30 days to clear everything for you and have you investment-ready, commented Nandan. Investment is encouraged in all of its forms, but to date, most investors in UP have come in and set up on their own rather than as a JV partner with an Indian company. “Examples of successful businesses that have come and set up include Honda from Japan. They make cars here in UP in Greater Noida. LG is in Greater Noida and Samsung is in Noida. They manufacture domestic appliances and mobile phones. Most of the phones that are manufactured here are sold here,” says Nandan. Success stories are not limited to heavy industries and hardware as there are also numerous foreign IT companies like Adobe, which have successful
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Vikramjit Singh Sahney, Hon. Consul General of Republic of South Africa, with Dr. Jacob Zuma, President of Republic of South Africa
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operations in UP. Equally importantly there are still a raft of opportunities for overseas companies wanting to join the UP bandwagon. At present there is huge demand for semiconductor wafers [used in the technology sector] but little local manufacturing thus representing yet another big opportunity. Uttar Pradesh’s most important cash crop, sugarcane, alone offers an attractive investment prospect, as do other sectors like infrastructure, IT, minerals extraction, tourism and hospitality.
FDI has also been aimed at catering to the needs of the indigenous population of over 200 million people. As Alok Ranjan, Chief Secretary of the UP state says, “If UP were a country by itself, it would be the fifth largest country in the world. This means that for anyone investing in UP, there is a huge consumer marketplace. We are the number one producer in India of a wide range of foodstuffs like wheat and sugar cane and we are among the top few in the production of vegetables.” It is clear that the agricultural sector is at a stage where investment can help to increase yields and output, supplying a far wider area than UP itself and positioning the state as the food basket of the entire nation. Food production, food processing, transportation and marketing are all areas that are set to boom in the next decade in UP and present limitless opportunities for the globe’s leading food companies. But it is not just about food. “We need to step up our state domestic product because this will lead to higher per capita income for our people. We want to move people out of being dependent upon agriculture alone and move into other sectors like industry and services. That is why we are focusing on skills development,” says Ranjan. “We need more investment in industry and partners in food processing. We are also looking at a lot of investment in IT and the electronics sector. We already have two hubs for these sectors.” Naturally, such growth is best seen
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MAIN FEATURES OF THE SINGLE WINDOW INVESTMENT PORTAL ■ Enables submission of applications online anytime from anywhere ■ Facilitates access, submission and processing of applications for setting up of industries ■ Saves time and money as repeated visits to different departments not required ■ Allows filling, saving, downloading and printing of applications online ■ Introduces transparency in granting approvals ■ Enables online payment of application fee ■ Reduces visits to departments, banks or treasury for payment of application fee ■ Confirms payment receipt instantly ■ Provides elegant layout laced with eye soothing colour and design ■ Offers simple registration process ■ Brings all functionalities at one place for registered entrepreneurs ■ Furnishes two-way interaction on digital platform between entrepreneurs and departments ■ Facilitates efficient monitoring at all user levels ■ Empowers analysis of pendency scrutinised any time by senior departmental officers ■ Displays colour coding to track those exceeding the time limit ■ Enables entrepreneurs to view application status and respond to clarifications online ■ Illustrates process flow charts with pre-requisites, procedures and
Local population offers a market in itself
guidelines ■ Sorts required application forms automatically based on industry type ■ Assists entrepreneurs through Help Manuals for filling forms and for online payment ■ Generates SMS and e-mails automatically and sends to entrepreneurs at each stage for tracking application status ■ Provides effective Grievance Redressal Forum ■ Acts as a comprehensive Information Hub ■ Enables easy access to Government schemes / policies / GOs through Alok Ranjan, Chief Secretary of State for Uttar Pradesh The huge population of UP has other side benefits for investors. UP also has a large number of educated students being pumped out of the colleges, universities and polytechnics every year. The state education mechanism constantly produces highly educated, trained and motivated staff ready and willing to take part in the challenge of building a new UP that has moved several notches up the value chain of production. As Ranjan says, “UP is a giant that has woken up and we have great potential. Things are happening now in the state. We have an enabling policy framework. We have a Government with a vision. We have a bureaucracy that is responding to the vision of the Government. We are trying to make it easier for people to do business.” Opportunities are whatever the foreign investor wants to make of them. “There is a lot of opportunity for partnerships in the infrastructure sector,” says Ranjan. “Any investor wishing to come in here these days
search facility ■ Furnishes digital interactive platform through feedback and monthly e-newsletters ■ Publishes blog posts on UP specific significant issues at frequent intervals ■ Connects public through social networking sites ■ Assists entrepreneurs through ‘Help Desks’ at District Industries Centres only has to go to one website for all his needs. He can apply online, check progress online and receive his clearances online. This is a big development for attracting investors. Clearance has to be approved within 45 days.” With determination of the CM for UP to become an investment hub the Government’s policies, programs, and regulations have become investor-friendly to invite and accommodate foreign investors. In addition there is an abundance of land, and water with the power supplies being augmented constantly. Combined with a variety of state financial institutions also being set up to provide institutional finance and a single-
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IT City is a unique initiative to provide an environment for the growth of the IT sector in the state of Uttar Pradesh. The idea involves attracting international players as well as fostering a centre for excellence within the state. Lisa Winters reports UCKNOW has been chosen as the site of a new 100-acre IT City, an initiative of the Akhilesh Yadav Government to develop and promote the IT sector in Uttar Pradesh (UP). This is one of India’s most ambitious infrastructure development projects and aims at developing a raft of new age or smart cities by converging next generation technologies across infrastructure sectors thereby providing a major thrust to planned urbanisation in India. The broad idea is that the city will be built using the latest cutting edge technologies with modern infrastructure and will be housed on UP State Industrial Development Corporation land. When the idea for the city was first discussed some years ago it was referred to as the ‘hi-tech city’ and morphed into a ‘Smart City’, finally to become IT City. The idea for this IT City development is to not only have offices and other workplaces but also hotels, dedicated power, utilities and direct connectivity to the airport with the state Government playing the role of facilitator and the private sector the developer. Under this general scheme, private partners can secure land from the Government at market rates and then lease blocks or properties to tenants of their choice. The new model also allows them the freedom to develop their own infrastructure.
in tandem with the state Government’s increasing focus on augmenting and constructing better infrastructure. Ranjan says, “We are looking for two things. The first is that we need to improve our infrastructure and that is why the Government’s commitment to infrastructure spend is up 80 per cent for the year. But we are also looking at public private partnership (PPP) opportunities.” Together with roads, power and water there is the increasingly important area of urban development where industrial, manufacturing and residential hubs are envisioned alongside the corridors being demarcated by the newly built expressways, train lines and metro lines. Attracting foreign money into these areas has been challenging in the recent past with the rest of the world still struggling to get to grips with the fallout from the global financial crisis. “The climate for PPP has not been good for the past few years because of the global financial climate. That is why we are funding so many of the projects ourselves,” says Ranjan but makes it clear that the door is now open to overseas investors with an eye on future growth markets.
HCL, the Indian technology group, is one of the first that showed early interest in establishing the 100-acre IT City in Lucknow leading to the creation of new job opportunities for 25,000 people in Uttar Pradesh. In October 2014 the UP Government duly signed a memorandum of understanding with the investment arm of HCL as a green light for setting up the IT city. HCL was established in 1976 as a joint venture with the UP Government and has a larger presence in the state of UP than anywhere else in India. Today, HCL is the largest private employer in UP providing direct employment to approximately 30,000 people and generating export revenue of approximately $1 billion. The first IT Special Economic Zone in North India was set up by HCL in Noida as a 46-acre campus and with a built up area of 1,125,000 square feet. The campus itself has approximately 13,000 employees and the project provides indirect employment to four times the number of direct employees. HCL is also launching a new campus adjacent to the old one which, when fully functional, will provide employment to an additional 12,000 people. “Four decades ago, we dreamt of positively impacting the world with microprocessors and the journey then began in partnership with the UP
Government. The development of IT City will further the momentum for innovation-led growth and social development in the state,” HCL founder Shiv Nadar (pictured) said. Speaking about Yadav’s IT City initiative Nadar said, “No state Government in the country has come up with such a unique concept of providing all IT infrastructure at one place.” In October 2014 the Chief Minister (CM) laid foundation stones of three mega projects in Lucknow, one of which was the IT City, which is due for completion before the next state elections. “These projects… will increase the importance of Lucknow as well as Uttar Pradesh and create more job opportunities,” Yadav said at the foundation laying ceremony in the Chak Gajaria area of the state capital. Sixty per cent of the city will be allocated to information technology and information technology enabled service (IteS), including a hi-tech skill development centre with a capacity to train more than 5,000 people. The remaining 40 per cent will be used for support infrastructure. “IT City will play a crucial role in the overall economic development and boost the industrial growth of the state. Apart from this, it will directly create approximately 25,000 job opportunities for the youth of the state,” Yadav said. Estimates suggest a further 50,000 indirect jobs will also be created. The creation of spin off jobs and support services is seen as a major plus for the project. This might include hardware manufacturing and telecoms equipment and would help to stem the brain drain of the state’s brightest young graduates from moving elsewhere. The development of IT City should also boost innovation-led growth and
window clearance system this has helped to ensure an environment welcoming and encouraging for investors. Following the lead of other developing regions, UP also offers special industrial areas such as software technology parks, electronic city, toy city, plastic city, integrated agro park, leather parks, chemical complex and textile city to cater to the needs of investors with specialist needs in fast growing sectors. According to Sahney, “With the focus on building partnerships and attracting both investors and investment Uttar Pradesh seems poised to be on the right track to become a global investment hub.”
No state Government in the country has come up with such a unique concept. HCL founder Shiv Nadar
social development in the state. The state-of-the art IT City has been conceptualised as a sustainable technology hub with clean power and balanced environment that will provide a modern work-life experience within a single integrated campus. This campus will also include IT delivery centres, a skill development centre, commercial complexes, social infrastructure consisting of a school, and hospital as well as residential units, thus promoting the ‘walk-to-work’ philosophy supported by a complete lifestyle of living and working experience for IT professionals. The proposed campus will play a significant role in the long-term economic development of UP and help boost industrial growth. IT City, first conceptualised by IBM, is set to be one of the first smart cities of the country. With this in mind the Government is keen to involve forward-thinking players from the private sector, one such player is Manpreet Singh Chadha from real estate firm Wave Infratech. “Currently we have two major projects underway in UP. Wave City Centre, the first smart township of Delhi NCR spread
across 152 acres and in Noida, Wave City, spread over 4,500 acres.” These are major developments set to deliver jobs, workplaces as well as homes and leisure facilities for budding young professionals. “Any sector runs on four pillars: people, process, technology and policy, with policy being the main pillar.” But there is still room for improvement. “Lack of single window clearance for all approvals and the delays in approvals are the major bottlenecks in the operations of the sector but Akhilesh Yadav is fixing that,” says Chadha. The Wave Group is comfortable that things are moving in the right direction for the promotion of industrial development in the state. “Opportunities given by the Uttar Pradesh Government to industrialists have been instrumental in shaping our businesses into what they are today. Also, once industrialists in Uttar Pradesh receive the necessary approvals to undertake their business, the UP Government is one of the least interfering when compared to other states and hence make doing business easy. Working in the state of UP has been good for us,” says Chadha.
4 UTTAR PRADESH
On the road to progress Continued from page 1 The remit of the authority is simple enough: build expressways and then develop the areas around them into powerhouses of the nation by creating industries, communities, infrastructure and jobs. Thereby increasing the wealth of the state overall. While some of the projects being undertaken by the Authority are modest, this is not something that can be said about the country’s longest expressway being built under the auspices of the UP authority. The first mega project will see 300 km of Expressway being built from Agra to Lucknow. Scheduled for completion in the next 21 months at a cost of a cool $3.5 billion, the Agra Lucknow Expressway will single-handedly change commuting dynamics for millions of residents of not only UP and India but also of the million of tourists and business people travelling to the nation annually. Navneet Sehgal (pictured), CEO of the UP Industrial Expressway Development Authority (UPEIDA), who has pursued the project from the beginning, says the expressway will not only reduce the travel time from Agra to Lucknow to three hours from six, but will also help to boost economic activities. “This will open up an entirely new area for development and will give easy access to Delhi, which is the biggest market for our agricultural produce. Ours is an agricultural economy so we need to provide a market to the farmers.” Sehgal added: “Akhilesh Yadav had desired that the green field expressway should be designed to facilitate the farmers and milk producers. Five farm mandis [markets] will be developed along the expressway. The Government will also be developing cities alongside the Expressway. This will benefit the masses in UP and the expenditure of the project will be realised through the toll tax.” More than 3,200 hectares of land passing through nearly a dozen districts was required for the expressway. Officials, led by Sehgal, worked overtime and managed to acquire the land without much confrontation with farmers in a record six-month period. By November of last year some 85 per cent of the land required for the project had been acquired. Sehgal states that the UPEIDA is “confident of completing the work in 22 months”. The process by which these roads are planned and expressways are built is a very competitive process with each aspect of development opened up to tender for parties both inside and outside India. Naturally, the development of roads is not simply about a single motorway. As Nirmal Singh, founder of Lotus Greens, a real estate development company in Noida and Gurgaon says, “There are many other recent world-class infrastructure projects undertaken in Uttar Pradesh like the Yamuna Expressway, Eastern Dedicated Freight Corridor, Metro Extension and Delhi Mumbai Industrial Corridor.” The Yamuna Expressway, for instance, is a 165 km long six-lane access-controlled expressway connecting Agra and Delhi. Along this expressway is the F1 racing track, which has hosted F1 Grand Prix races making the development famous globally. The extension of the metro-rail to Greater Noida, another growing city of UP, will help to boost the infrastructure status of the area further and attract additional investors to this part of the country. The proposed Eastern Dedicated Freight Corridor is set to see huge development in the state covering the Amritsar-Delhi-Kolkata industrial stretch across four different states. In an effort to expand its trade, investments and export this growth spurt can also be seen throughout the nation. Some mega projects being planned by the federal Government also complement and augment the initiatives being carried out by the state. The Delhi Mumbai Industrial Corridor (DMIC) is one such mega project being developed, that will both increase the manufacturing and services base and ultimately give other manufacturing hubs throughout Asia and the rest of the developing world a run for their money. Manpreet Singh Chadha, vice chairman
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26 January 2015
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of the Wave Group, a business conglomerate that operates across various industries says, “Over the last few years we have seen major steps being taken by the state Government to boost the situation of civic amenities in UP. Due to its close proximity to the national capital and cities like Noida and Ghaziabad being a part of the national capital region (NCR), Uttar Pradesh has seen some major projects kick off and others completed in the recent past.” In addition to the Yamuna Expressway and the Agra to Lucknow Expressway, there are also three metro projects being undertaken simultaneously in Noida, Ghaziabad and Lucknow as well as a monorail project. “Apart from this, the Uttar Pradesh Government is also building the first hi-tech city in Ghaziabad and Lucknow which will definitely bring about a huge change in the state over the course of time,” says Chadha.
UP Industrial Expressway Development Authority’s CEO, Navneet Sehgal
Generation, transmission, distribution It is not just about roads, railways and metros. There is also a burning need for investment in, and development of, the energy sector in order to power the growth of the state. Sanjay Agarwal, private secretary for energy for the Government of Uttar Pradesh is sanguine about the size of the job ahead and the demands that will be placed on the energy sector as the state grows. “Power is a catalyst for growth,” he says. The Government’s agenda is to make power available 24 hours a day to all places within the state. At present, rural areas only have power a set number of hours, often only 17 hours per day. The Chief Minister (CM), Akhilesh Yadav, has set an “always on” target that will require around 22,000 megawatts (MW) of energy. “This is more than double what we have at present but is the very ambitious target we have set ourselves,” says Agarwal. The state currently produces 10,000 MW for itself. Like all other mega projects being undertaken by the state, success involves dovetailing a large number of factors to come together in harmony. In UP’s case it involves not only production but also distribution, for which the planning began in 2013. By 2016 the state aims to have lifted output levels to 17,500 MW from 10,000 MW. The balance required to reach 22,000 will be secured through a public private partnership (PPP) deal with third parties that have international expertise. This is no small challenge. “Roughly speaking, the investment in the transmission sector in the five-year period from 2007 to 2012 in terms of new service stations was about half a billion dollars,” says Agarwal. “Apart from the increase of supply, one of the most crucial things we want to do is to increase coverage. There are over 170,000 rural hamlets at present that have no electricity and the plan is to connect all of them at a cost of $2 billion.” All of the protagonists in this task seem to be conscious of the size of the opportunity. It is not for the faint hearted and it is not for small players. The costs are huge, but so are the rewards. “In the energy sector, a major change is taking place. These developments will not only be good for the state but for the country and the world. This is the CM’s vision. The best thing is that his full support, and full trust is there to see this achieved,” says Agarwal.
OOD, food production and food security are very much part of the national agenda which means that the state of UP often has limited room to manoeuvre when setting its own food policy and prices. Even though the state Government of Chief Minister (CM) Akhilesh Yadav is pro-farmer more often than not they have their hands tied due to the national agenda. A case in point came to the fore in August 2014 as Indian inflation unexpectedly skyrocketed, driven in large part by a sharp rise in the price of food basics resulting in the federal Government of Narendra Modi to take two steps that affected UP acutely. The first move was to double the minimum export price of onions, making it far tougher for UP farmers to sell their onions to foreign buyers. The second move was when the Modi Government followed up by doubling import tariffs on sugar from overseas to support local farmers with the price of domestic sugar jumping by 1.5 per cent overnight. With this type of mismanagement many attribute to the Minister of Food Processing in the Modi Government, state Governments such as UP have found it challenging to plan and budget for their agriculture sector. The apparently conflicting moves by the Minister at the central level have made the Modi Government look as if they are struggling to forge a coherent national food policy. The Yadav Government, a pro-farmer party, realises that both food and farming are highly sensitive political issues across the nation and ones that have the power to cut across the traditional divides of caste and religion. In UP food production is doubly important. Alok Ranjan, Chief Secretary of State for UP, explains, “We are the number one producer in India of a wide range of foodstuffs like wheat, sugar cane and we are among the top few in the production of vegetables.” Why food is such a big deal is not hard to see. Food and drink accounts for more than half the weekly budget of around one third of the nation’s households. The people, the urban poor and the working class, are voters as well as consumers who are tired of seeing the purchasing power of their earnings depleted by food price inflation. This alone should be cause enough for the Modi Government to focus sharply on stabilising food prices. Across the nation up to 70 per cent of households live in rural areas and at least part of their income stems from some form of agriculture. Hence the mantra of the Government of Uttar Pradesh is simple indeed: it wants food prices to remain low for urban consumers and its policy backs this mantra up. Wheat, rice, potatoes and oil seeds are the major agricultural products produced in the state however the most important
Food, glorious food Uttar Pradesh could easily assume the role of food basket for the whole of India. Fertile lands, availability of irrigation, and a workforce that is plentiful, have contributed to UP being one of the major contributors to the national food grain stock and thus the social and economic fabric of India. But there are hidden challenges. Paul McNamara reports cash crop throughout UP is sugar cane and the price of sugar is serious business in the state. “We are great at growing sugar cane,” says Akhilesh Yadav, Chief Minister of UP (pictured). Every year the federal Government sets the raw sugar cane price that private sugar mills have to pay to all sugar growers in pre-determined areas. On the whole this works well, but not in a state where sugar production is as high as it is in UP. The state Government has dictated that buyers from the sugar mills must pay an extra premium added on top of the federally mandated price to make it more lucrative for farmers to use a greater portion of their land for growing more sugar cane. The mills have to make a margin
between the price they are forced to buy the raw sugar cane at and the market price for processed sugar. The net result is that they often claim they do not have enough money to pay the farmers. In the middle of 2014, mills owed $1.8 billion to farmers for cane they had taken but not paid for. Farmers, naturally, have decided not to plant sugar for the following season potentially leading to disastrous ramifications for future sugar harvests. Sugar mills in UP have also stated that there businesses have become non viable as a result of the extra tariffs imposed and hence will suspend cane-crushing when the next season starts. Studies on food security in UP in
The Yadav Government, a pro-farmer party, realises that both food and farming are highly sensitive political.
the past have tended to focus on policy and how it affects food production. One of the core findings of these studies is that food availability and food stability are interdependent. One of the startling conclusions facing UP is that food availability is reducing primarily due to the switching of cereal crop cultivation into commercial crops, such as sugar. Food stability may be reduced due to changing land use patterns associated with industrialisation, commercialisation, technological innovation and globalisation as farmers tend to cultivate cash crops to put food on their own table. The largescale cultivation of cash crops severely hampers the production of food grains and subsequently the availability of food grains is gradually reduced. This cycle, however, may not be in the best interests of the state of UP as food accessibility is largely dependent on the purchasing power of common people and differs from food availability and stability. Forging a food policy that is in the best interests of the common people and families in UP remains an elusive goal, but one that both the state and central Governments need to get right in order to protect the overall prosperity and wellbeing of its citizens. As a party and Government that is pro-farmer Yadav as the Chief Minister, through his Government’s initiatives, remains the best hope.
A ‘power’ point for UP TAPPING the unlimited potential of Uttar Pradesh (UP) has been a priority of Chief Minister (CM) Akhilesh Yadav’s Government since the tech-savvy leader took over the reigns in 2012. One area that has been a thorn in the progressive leaders side has been ‘power’ and not political power but electricity and the manner in which to best quench the thirst of this power hungry state. For years UP has been lambasted for its grim power scenario, as there is a perpetual shortfall of about 2,000 to 3,000 megawatt (MW) while the demand crosses 15,000 MW, one of the highest in the country. In addition the alleged ‘power theft’ and a lack of alternatives, like solar energy, has resulted in UP’s naysayers crowing louder than a collective of howling banshees As the nation develops and grows so does its demand for electricity, something that is endemic across all of the Indian’s states. In the last two decades alone, UP has seen just five new units of thermal power being built while the demand has grown tenfold. According to Government sources there is an increase of 12 to 14 per cent in demand every year, which equates to an increment of 23,000 MW within the next five years, while only 4,000 MW is expected to augment the supply. But now it seems that UP is answering its naysayers not with public relations propaganda but with its actions. The state Government has made environmentally friendly power generation a centrepiece of its power policy effort and has invited both the private sector in India and international private enterprise to assist in its goal of increasing power generation within the state. In early December Yadav announced that his Government had procured around $3.5 billion of investment from the state, private sector and joint venture initiatives for power generation, transmission and distribution projects. All of which is to flow into the beleaguered energy sector by 2016/17. But it isn’t just securing investment funds where Yadav has been concentrating his efforts. As it appears UP’s three-decade-long wait for addition to its power generation capacity is expected to come to an end in 2015. According to Sanjay Agrawal, Principal Secretary of UP’s
The biggest single issue facing the Uttar Pradesh state as it embarks on a comprehensive development drive is power. To unlock the full potential of the state electricity and its supply hold the key. Kathryn Freeman reports power department, the state began generating nearly 4,000 MW of additional power mainly through six units of its three under-construction thermal power plants and through minor contribution from six other solar power plants. All these power plants are nearing completion resulting in additional capacity amounts to nearly half of the power currently generated by the state. “2015 is going to shed a major electricity burden of the state with our three units of about 4,000 MW nearing completion. While one unit of Anpara-D would be
STATE OF INFRASTRUCTURE: POWER The state has an installed capacity of 14,832.92 MW, as of November 2014 (includes allocated shares in joint and central sector utilities). This includes 5,472.20 MW under state utilities, 5,295.64 MW under central utilities and 4,065.08 MW under the private sector. Of the total installed capacity in Uttar Pradesh, the contributions from various sources include: • Thermal power – 78.5 per cent • Hydro power – 13.6 per cent • Renewable energy sources – 5.6 per cent • Nuclear power – 2.3 per cent Source: Central Electricity Authority
completed by March, we are expecting other units of Anpara, Bara and Lalitpur power plant to get completed by September and October,” said Agrawal. The CM, Akhilesh Yadav, has personally overseen the project, and has been holding monthly reviews with representatives of the companies that have undertaken the construction work.
The solar route As a keen environmentalist the CM is eager to set a new standard for green power generation within the state. In 2013 UP’s New and Renewable Energy Development Authority (UPNEDA) finalised a total of seven prepurchase agreements (PPA) with a collective of private power companies and one public firm, to set up solar power plants totalling 130 MW capacity. The private companies include: Jakson Power Solutions, Moser Bayer Clean Energy Ltd, Sree Developers, DK Infracon, Refex Energy, Azure Surya Ltd and Essel Infraprojects. One of the latest chess pieces to be played in the solar power game saw NTPC (India’s largest national power company) in November 2014 announce that it would build a 375 MW solar power park in the Jalon district of UP in conjunction with the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) and the Solar Energy Corporation of India (SECI) at an estimated cost of $50 billion. The UP Government will hand over about 750 hectares in Jalon to NTPC, the implementing agency, to develop the solar park in phases during which time NTPC will pay the Government a nominal rent on the leased land. Solar energy is set to play a key role in the future of the state. Regions such as Bundelkhand have the capacity to generate solar power. Keeping in view the maximum sunlight this area receives makes Budelkhand city prime for future investment. Roof-mounted solar power generation is also starting to become big news in the region and off-grid solar power as a strategy of rural electrification is also gaining in popularity. In all, the sun is shining brightly on UP and its solar-powered sector.
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S THE balance of manufacturing and production power shifts increasingly east towards the dynamic centres of India and China, it is becoming more evident that these two nations are vying with each other for supremacy. In order to increase competitive viability in this fierce skirmish, Uttar Pradesh (UP) realises that it will need a well-connected transport and logistics grid both for receiving raw materials and for exporting finished products. The preparations for this new reality come back, inevitably, to infrastructure and new developmental initiatives such as the freight corridor. The challenge is simple: to beat China as an economic powerhouse a global manufacturing hub is needed. This is a tough challenge given the fact that manufacturing only accounts for 15 per cent of the gross domestic product in India, compared to China’s 30 per cent. The stark reality is that no developing Asian country has yet risen to middle-income status with figures so low. This fact alone is perhaps the underlying reason why Prime Minister Narendera Modi has been repeatedly emphasising his Government’s ‘Made in India’ campaign since its launch in September. As a nation, India displays excellence in discrete pockets of high-tech manufacturing as global car giants Ford and Hyundai both run state of the art production centres in the country. However in manufacturing where it counts most, in the areas of lower skilled, and labourintensive industries, India does less well. Ironically, this is where the window of opportunity is as estimates show 12 million new jobs will be needed every year until 2030 to absorb the demographic blessing India has: a wealth of young people. Export-led manufacturing remains UP’s best economic hope for the future however seismic shifts to the way things are done will be required including a change to the outmoded labour laws and a redrafting of the land acquisition regulations. To succeed cheap labour is a prerequisite and India has this in spades. The killer advantage however will be in the efficiency and effectiveness of the logistics network and energy supply as both of these will be the final determinants in convincing global manufacturers to relocate to UP. There are observers within India who fret that it may already be too late and that China’s first mover advantage may have met the excess demand that existed, leaving nothing on the table for India to
aim for. Raghuram Rajan, Governor of the Reserve Bank of India is one such believer: “The world as a whole is unlikely to be able to accommodate another export-led China,” he said in December 2014 in a speech warning against the imposition of more tariffs. And this is where Akhilesh Yadav’s initiative of the Delhi-Mumbai Industrial Corridor (DMIC) is key. The DMIC has been described as India’s most ambitious infrastructure programme aimed at developing new industrial ‘smart’ cities and converging next generation technologies across infrastructure sectors. The idea is to expand India’s manufacturing and services base and develop DMIC as a global manufacturing and trading hub. The programme is geared towards providing a major impetus to planned urbanisation in India with manufacturing as the key driver. In addition to the new industrial cities, the programme also calls for the development of infrastructure like power plants, assured water supply, high capacity transportation and logistics facilities. On a human scale it will also require development in soft infrastructure such as skills development programmes and education. As a launch initiative, seven new industrial cities are being developed with the complete programme being conceptualised in partnership and collaboration with the Government of Japan. The overall vision of the programme is to create a strong economic base within a globally competitive environment and state-ofthe-art infrastructure to activate local commerce, enhance foreign investments and achieve sustainable development. From UP’s perspective, the Dadri-NoidaGhaziabad Investment Region project looks at five selected projects including the Greater Noida railway station, a multi-modal logistics hub and an international airport at Greater Noida, another booming city of UP located on the outskirts of Delhi, the capital of India. The project is seen as offering good potential for flagship foreign investment in the region in which the existing industrial belt is strengthened and enhanced further. Boraki and Dadri will be the locations for projects including the railway station and logistics hub to help achieve further development and completion of Greater Noida. In early January the Noida and Greater
Noida Authorities chairman and CEO Rama Raman said the project, “Will not only generate thousand of jobs but also work as oxygen for the real estate sector of North India.” Under the project the Greater Noida Authority, on behalf of the UP Government, will enter into an agreement with the centre for developing infrastructure for first “early bird projects” in integrated industrial townships in the state along the DMIC. Both the DMIC trust and Greater Noida Authority are in talks to sign a joint venture to executing the project in UP. Raman said, “Under the project early bird projects, there will be development of Boraki Railway Station as Passenger and Commercial Cargo Hub, Multi Modal Logistics Hub at Dadri, Power Project at Greater Noida, Mass Rapid Transit System (MRTS) between Dadri-Noida-Ghaziabad Investment Region and Delhi.” Nirmal Singh, who is vice chairman of real estate firm Lotus Greens said, “One of the important projects undertaken by the Government of India which will benefit Uttar Pradesh and National Capital Region (NCR) at large is the Delhi Mumbai Industrial Corridor. This is India’s most ambitious infrastructure development project which aims at developing new-age cities we know as ‘SMART Cities’ and converging next generation technologies across infrastructure sectors thereby providing major thrust to planned urbanisation in India.” Singh added, “The initial phase development of DMIC will create a huge impact on the already developed region of Delhi NCR including Noida and Greater Noida due to the construction of the
Akhilesh and Mulayam Yadav at the Lucknow Expressway opening nodal point of Dadri-Noida-Ghaziabad Investment Region.” Another real estate firm that set to come on board with investment in the region is Orris Infrastructure. The company’s MD Amit Gupta believes the proposed DMIC “promises to open the floodgates of new investment opportunities and is expected to be that catalytic factor that promises to offer investors a gold mine once the project is over.” Adding, “There is no denying this high-speed connectivity between Delhi and Mumbai offers immense opportunities for development of an industrial corridor along the alignment of the connecting infrastructure.”
Dedicated Freight Corridor Corporation of India From a rail perspective, the Dedicated Freight Corridor Corporation of India is
a special purpose vehicle set up under the administrative control of the Ministry of Railways to undertake planning and development, mobilisation of financial resources and construction and maintenance and operation of the dedicated freight corridors. This is crucial to the development of UP. The plan to construct dedicated freight corridors across the country marks a shift in the modus operandi of Indian Railways (IR) that has in the past run mixed traffic across its network. Once completed, the dedicated freight corridors will enable Indian Railways to improve its customer orientation and meet the needs of the market more effectively. Creation of rail infrastructure on such a scale is also expected to drive the establishment of industrial corridors and logistics parks along its path, bringing music to the ears of the UP Government. The Indian Railways’ linking of Delhi, Mumbai, Chennai and Howrah and its two diagonals, Delhi-Chennai and Mumbai-Howrah, have added up to a total route length of 10,122 km which now carries more than 55 per cent of revenue earning freight traffic of IR. The existing trunk routes of Howrah-Delhi on the Eastern Corridor and Mumbai-Delhi on the Western Corridor are highly saturated with line capacity utilisation varying between 115 to 150 per cent. The surging power needs for heavy coal movement; booming infrastructure construction and growth in the international trade are all core factors that have led to the conception of the dedicated freight corridors along the eastern and western routes. The Eastern Dedicated Freight
Star of the show Roads, rail and the development of ports spell a new age for the industrial sector in UP. The journey however has only just begun, as Peter Cunningham reports
growth to help support investors and their investments. “UP can attract huge investments, courtesy of its welldeveloped physical infrastructure, good connectivity with all major cities of the country coupled with robust industrial infrastructure with various industrial areas and specialised parks/zones. Further, it offers a rich pool of skilled and semi – skilled human resources, making it suitable for both knowledge-based and labour-intensive sectors, both in manufacturing and services sectors,” commented Zubin Irani, Chairman, CII Northern Region and President – Building & Industrial Systems (India), United Technologies Corporation India Pvt Ltd.
Opportunity Germany-based architect Studio Symbiosis’ Trans Ganga Masterplan Kanpur
While investors interested in the Indian market are anxiously watching the country’s
the youth are certain key focus areas that can help UP emerge as the most preferred investment destination across India.” In terms of capital market activities, the services sector is the most important area in the state for growth. UP has established itself as a hub for IT companies and ranks fourth in the country in terms of software exports. It is here that multinational corporations have been drawn most easily and many have established facilities in the Noida industrial area, attracted by its talented workforce and proximity to major markets. One such overseas company that is working in the region, Studio Symbiosis, a German-based architect, is involved in a number of projects, including the Punjab Kesari headquarters in Noidal, Trans Ganga Masterplan in Kanpur, Allahabad Masterplan, Double Tree by Hilton in Ahmedabad and Taj Ahmedabad to name but a few. Britta Knobel Gupta, founding partner of Studio Symbiosis, says, “UP is at the forefront of growth and development with a clear vision for the future. In urban master planning and architecture, UP has launched a number of hi-tech cities in various cities across the state to promote the growth of the state creating cutting edge infrastructure. In India likewise similar growth is reflected, with states like UP taking the initiative to create precedents for rest of the country.” Her partner Amit Gupta added: “The projects we are working on in UP are focused on creating sustainable, integrated infrastructure planned for the future. These projects look at creating synergy with their surroundings and acting as attractor nodes that would promote growth for the surroundings as well. The projects we are developing in UP look at corporate offices and bring in industries in the state that would result in increased movement to UP from other parts of the country and in creating more job opportunities for the state promoting growth. A strong sense of identity is instilled in these projects.” Nirmal Singh, Founder of Lotus Greens, whose company has launched multiple residential projects in Noida this year, namely Lotus Arena & Lotus Yardscape and Lotus Parkscape, a multihousing development project at the Yamuna Expressway, told me that, “UP has huge opportunities because it has a unique consumer base to cater to. Since Noida and Greater Noida are governed by a special law called UP Industrial Act 1976, the city has no multiplicity of authorities. As Noida is only supreme authority to take all important decisions, realtors get their issues resolved with ease unlike in other states where multiple authorities hamper or delay decision making.” Other developers like NRI City are also looking at UP to build residential and commercial communities for both non-resident Indians and global investors. Overall things are looking bullish for UP from an FDI perspective, in the past year the total investment in the state amounted to nearly $14.4 billion, of which infrastructure investment constituted $11.45 billion. As CM Yadav continues on this positive path, 2015 could prove to a be fruitful year for the state making Uttar Pradesh a chosen destination not just for tourists but for keen foreign investors looking to work with a socio-economic innovator and development-focused progressive Government.
knocks
Prime Minister, Narendra Modi to see if he will deliver on the many reforms he has promised to kick-start the economy, much of the real work to bolster India’s economic growth is being done at the state level. Making investments in states like Uttar Pradesh a window of opportunity. Emily Jones investigates IN THE past couple of years India, the world’s largest democracy, has undergone a sensational transformation both in terms of politics and the economy. After years of disappointing returns, Asia’s third largest economy seemed to have rediscovered its mojo in 2014. Stocks rose by a third; foreign investment grew by a quarter; and the economy expanded at its fastest pace in over two years. No surprises then that on the world circuit this emerging BRIC economy is on the lips of some very influential players and the spotlight is shining brightly as India’s new poster boy, businessfriendly Prime Minister Narendra Modi, takes to the stage to show the world exactly what it’s all about. Since Modi’s landslide win in last May’s parliamentary elections he and his Government have quite literally opened India’s front door and placed a very large welcoming mat down for foreign investors to wipe their feet upon entry. On 3 December, the Modi Government announced the creation of a panel to help fast-track investment proposals coming from the US, and the Government has also extended the withholding tax, treating income as capital gains, and introducing safe harbor rules for foreign investors. One influential caller that is about to step through India’s open door, is US President Barack Obama, the first sitting US president to visit India more than once, as Modi’s Republic Day guest of honour. For Modi a good foreign policy means good business and Obama’s visit gives him ample opportunity to discuss such
Corridor (EDFC), with a route length of 1,839 km, is being supported by the World Bank (WB). In December, the Government of India and the bank signed a $1.1 billion agreement towards the second loan for the EDFC project. The project itself consists of two distinct segments: an electrified double-track segment of 1,392 km between Dankuni in West Bengal and Khurja in Uttar Pradesh plus an electrified single-track segment of 447 km between Ludhiana – Khurja – Dadri in the state of Punjab and Uttar Pradesh. According to the World Bank the Project will help increase the capacity of these freight-only lines by raising the axle-load limit from 22.9 to 25 tonnes and enable speeds of up to 100 km/hr. It will also help develop the institutional capacity of the DFCCIL to build and maintain the DFC infrastructure network. The Eastern Corridor will traverse six states and is projected to cater to a number of traffic streams and sectors including transport of coal for the power plants in the northern region of UP, Delhi, Harayana, Punjab and parts of Rajasthan, finished steel, food grains, cement, fertilisers, and lime stone. The total traffic in the direction of Uttar Pradesh is projected to go up to 116m tonnes by 2021/22. The net result of all this activity paints a picture of a state that is the middle of its biggest ever growth phase. Jobs, investment and prosperity of farmers, manufacturers, and the common person are forecast to receive the most significant benefits of this growth with a once in a lifetime chance to put Uttar Pradesh on the map as one of the most significant industrial powerhouses of the region.
things as energy, trade, defense and infrastructure partnerships. Obama however won’t be the only world leader Modi will be looking to strike deals with during the coming year. Away from the spotlight it would seem that a lot of the hard work to strengthen India’s economic growth is being done at the state level. While the central Government has been relaxing foreign direct investment (FDI) limits in different sectors, the Uttar Pradesh (UP) Government under the leadership of its progressive and development oriented Chief Minister (CM) Akhilesh Yadav has announced a string of new policies, made amendments in old policies to announce fiscal incentives and introduced other investor friendly measures – such as the Solar power policy 2013, Infrastructure and Industrial Investment Policy 2012, IT Policy 2012 and Sugar Industry, Co-generation and Distillery Promotion Policy 2013 all in efforts to help increase investment and promote growth. Infrastructure improvement is the number one priority in UP making this the area for the biggest capital market transactions. Roads, railways and metros tend to be projects that require significant financings spread over many years and it’s into these projects that the mega bucks appear to be flowing. By opening up its economy, cutting bureaucracy and introducing pro-business reforms CM Yadav seems to be steadfast in his resolve to grow the private sector and craft a friendlier environment for business
UP has already attracted significant investments in sugar, cotton fabrics and diversified food preparations and the state has the fifth highest share in the country in value added manufacturing of nearly 7 per cent. Electronics, leather, textiles and mineralsbased industries have shown a promising growth in industrial investments over the years and companies in UP increasingly eye overseas markets as the next logical growth segment. It comes as no surprise that under the guidance of the state’s young and progressive CM, foreign companies are starting to look at the investment potential of UP. According to DS Rawat, national secretary general of The Associated Chambers of Commerce and Industry of India (ASSOCHAM), “UP holds tremendous potential to achieve its aim of an annual industrial growth rate of over 11 per cent and 10 per cent in state gross domestic product (SGDP) by improving the infrastructure and creating an investor-friendly environment by offering tax concessions and incentives to lure industrial enterprises.” In September a Dutch delegation, led by its Ambassador Alphonsus Stoelinga, visited Uttar Pradesh’s capital of Lucknow to discuss the potential of investing in sectors such as agriculture, dairy development and innovative technologies. According to Stoelinga, “Four Dutch companies Phillips Electronics, Royal Haskoning DHV, Ecorys and TNT are already present in UP and they are seeking to expand their business here.” He said that sectors like urban planning, water treatment, infrastructure, airports health are of special interest to them and they are willing to make investments to set up projects under the Public Private Partnership with the state Government. He added: “Facilitating infrastructure financing loans, ensuring speedy clearance to projects and imparting technologically advanced, sound training facilities to enhance the employability of
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6 UTTAR PRADESH ICH in art, culture, traditions, spirituality, religion, and heart there is a reason why Uttar Pradesh (UP) greets visitors by the million every year. Visitors come to visit the Taj Mahal, others to experience the holy city of Varnasi and the sacred Ganges River and others to shop for the multitude of handicrafts and taste the fabulous food. As a tourist hot spot some choose to arrive by flight via the many network of airports, others by train on the picturesque railways and others by car on the many freeways. In the old days, swanky travellers from far-flung shores would also have arrived on horseback or, for those looking for a more earthy experience, by bullock cart, but sadly those days remain no more. I decide to be adventurous and choose to go by car from my hotel in Delhi. Once I get used to the bumps and potholes in the road, I settle down as we approach the Delhi Agra Expressway into an almost somnolent rhythm allowing me to relax and unwind, something that is hard to achieve in the bustling metropolis of Delhi. The drive is picturesque and allows me as a casual observer to take a peek into the everyday lives of the people of Uttar Pradesh. As I look out my window everyone seems to be carrying on going about their business: women balancing uncommonly large bundles of something soft on their heads; men manoeuvring enormous and highly colourful plastic containers on lengths of string; other men transporting two lawn mowers at a time on the backs of their bicycles all with a smile. Feats that would seem improbable elsewhere in the world seem perfectly normal here. My only regret I realise is that I am not equipped with a better camera to capture the images that I am sure will remain with me forever. A little further on we start to pass tiny structures by the roadside that appear to be made of scoops of dry clay or earth. I think that there are too many of these to be dwellings but yet they seem big enough to house one or two people. Consumed by curiosity, I ask my driver what they are and to my surprise I am told they are mounds of cattle dung that are being stacked for drying. Dry cattle dung is used as a fuel source since there is so much of it and it is eminently combustible as after burning, the ashes are ploughed
26 January 2015
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An unforgettable
life experience Myth, religion and history have engaged in a curious interplay in the magical land of Uttar Pradesh. The countless shrines, temples, and pilgrimages make for a fascinating journey but combined with the graceful smiles, incredible handicrafts and tempting foods visiting the vibrant state is an experience one will treasure for a lifetime. Paul McNamara reports
The iconic Taj Mahal in Agra
back into the fields to ensure the soil remains fertile. It almost feels as if I have been taken back in time to get a glimpse of a way of life that has not changed much for centuries. As we pass the people, the fertile lands and the cars I am in awe of all that I am seeing. All too soon I arrive at the Taj Mahal in Agra and the journey is over. The Taj Mahal, built by a grief stricken emperor Shahjahan as a memorial to his beloved wife Mumtaz Mahal, is undoubtedly one of the most iconic structures ever built by man and attracts over 4 million visitors every year. Over the ages, countless words have been written about the Taj. I also find myself in awe as I gaze up at the Taj Mahal and am reminded of the quote that describes the Taj Mahal as having been designed by giants and finished by jewellers. The Taj Mahal is truly magical and amazing. Due to the efforts of the UP Government the queues are much shorter than I expect given the hundreds of thousands of visitors daily. I buy my ticket and realise I am not alone in being in awe of this beauty. I wander around taking too many photographs and knowing that despite my photography skills none of my pictures will even come close to
capturing the magic of the real beauty. It is quite possible to visit Agra on a day trip from Delhi by car. Many leave Delhi early morning and return back in the evening but I decide to stay, explore and see what else Uttar Pradesh has to tempt me. A few days into my trip I am not disappointed. Uttar Pradesh boasts three World Heritage sites. In addition to the Taj Mahal, there is also the Agra Fort and Fatehpur Sikri. I realise I cannot go to UP and visit the Taj Mahal alone and miss out on a panoply of fabulous and historic places and things to see and do. These include exotic and poetically named destinations like Allahabad, Bithoor, Chitrakoot, Lucknow, Sravasti and Vrindavan. Each of which manages to play its part to make for a fascinating and culturally rich state. Of course, tourism means big bucks these days and that makes it a ferociously competitive line of business. Little known destinations scrabble to find unique drawcards in the hope of luring tourists with bulging wallets to come, visit and spend. Uttar Pradesh displays an exuberant and vibrant culture with its many festivals, monuments, ancient places of worship and viharas or Buddhist monasteries. The tourist guidebooks talk of the Kumbh Mela,
the largest peace gathering in the world where millions of Hindus gather to bathe in the sacred river. Held every 12 years in Allahabad the gathering in 2013 saw over 100 million visitors on the banks of the Ganges. As each day passes and my trip draws to a close I wish there was more time to enjoy all that Uttar Pradesh has to offer. From the historic sites and holy cities, to the handicrafts and delicious cuisine there doesn’t seem to be enough hours in the day to experience it all. For history buffs, the towns of Sarnath and Kushinagar are located not far from Varanasi and are important
The must-see ancient Agra Fort
both culturally and for religious reasons. Gautama Buddha is said to have given his first sermon after his enlightenment at Sarnath and then died at Kushinagar. Making both places as must-sees for Buddhists looking for a bit of spiritual uplift. Sarnath also boasts the Pillars of Ashoka and the Lion Capital of Ashoka, which have added much to our archaeological understanding of the region. Another must I am told is the 80 km trek from Varanasi to Ghazipur and visiting the tomb of Lord Cornwallis, the former India Governor General, maintained by the Archeological Survey of India. Uttar Pradesh has more than just monuments to offer. There are heaps of places to stay in the lap of luxury to truly experience the culture and heritage of UP. The Pallavi International hotel in Varanasi, The Mud Fort Village hotel in Bulandshahar, The Royal Retreat hotel in Shivpati Nagar, the Nadesar Palace in Varanasi, the Grand Imperial hotel in Agra and the Jukaso Ganges hotel in Varanasi boast a heritage that is preserved while ensuring that each of its guests is pampered with warmth, and kind hospitality in true Uttar Pradesh fashion. The Fort Unchagaon hotel in Bulandsahar, for instance, showcases the magnificence and splendour of the early 20th century colonial and Indian style architecture. Every corner of the interior and exterior of the hotel is artistically decorated and must be seen to be believed. Originally, constructed using mud the ancestors of the present owner came into possession of the house by a twist of fate. In 1859, the then owner was a Rajput Zamindar who lost possession of the house to the British after the battle of 1857. The current owner, Raja Surendra Pal Singh became the inheritor of the palace in 1927 when he was just 10 years old. Awestruck by the elegance of the old building he decided to renovate and re-establish it and today, Fort Unchgaon exists as a famous heritage hotel of UP. Even to this day, one can almost imagine Noel Coward, Somerset Maugham and Rudyard Kipling having their tiffin on the lawn. The slow march of progress is fast catching up with even the most remote parts of UP and wise travellers will do well to try and visit before it all disappears. The tourism authorities are doing their best to preserve this marvelously historic and culturally significant state but when it comes to travelling there really is no time like the present.
Investment potential for UP tourism UTTAR Pradesh (UP) has some of the greatest wealth in tangible and intangible heritage. As a powerful economic driver, its heritage has had undeniable positive implications for its economy but a historical lack of proper infrastructure, poor legislation and crumbling services have meant that in reality UP has been unable to harness the true power of its heritage in a way that drives inclusive growth and reduces poverty. However it seems all that is changing, as the UP tourist industry is undergoing a massive overhaul. Under the leadership of its young Chief Minister (CM), Akhilesh Yadav, the UP Government is working to address the current poor investment climate surrounding the tourism trade by updating its 2002 Tourism Development Policy. A few of the initiatives underway include cleaning up tourist destination sites, increasing security at tourist destinations, improving accessibility, implementing a pro-poor tourism development project that prioritises the Buddhist Circuit and the Braj-Agra Corridor to help serve as a driver for the socioeconomic development of the state, addressing issues such as excessive red tape (e.g. problematic visa procedures, complex and non-transparent business regulations, licensing and inspection – especially for hotels), enhancing municipal governance and legislating urban land markets. Given its sheer number of tourists, cultural and heritage sites UP is ideal for investors looking to invest in the hospitality sector. The UP Government, through its Department of Tourism, has sought a loan of $410 million from the World Bank for its anti-poverty tourism development project. The move means that the UP Government will be in a better position to not only implement the development project in the state’s primary Buddhist Circuit, including Agra, and the Braj-Agra Corridor, but also aid in reforming UP’s tourism sector as a whole by providing public services to poor communities currently living in some of the state’s heritage areas, enhancing the management of the state’s natural and cultural assets as endogenous sources of inclusive development, enabling private sector investments and assisting in job creation for both youth and women. IFC, a member of the World Bank Group, has worked with a Government-constituted multi-stakeholder Buddhist Circuit Steering Committee to develop a five-year roadmap to establish the Buddhist Circuit as a tourist and pilgrimage destination. Titled ‘Investing in the Buddhist Circuit’, the roadmap outlines actions needed to transform Buddhist sites and estimates that $200 million in investment is required to improve infrastructure, hotels, facilities, and services of logistics companies and tour operators along the circuit, both through public and private participation. Serge Devieux, IFC Director for South Asia, said, “Private sector participation is critical in this extraordinary, first-of-itskind initiative. IFC will assist in nurturing a business environment conducive for the private sector, encourage and invest in local enterprises, domestic industry, and foreign investors to build robust infrastructure, hotels, enable quality services along these sites, and create better economic opportunities and jobs.” Having funded $2 billion in more than 270 hotel projects across the world, IFC is an experienced hotel investor and keen to fund viable hotel projects.
Changing perceptions: Law and order TACKLING law and order in any society is a tall order but when it comes to one in which there are over 200 million people with disparaging and varying socioeconomic, educational and employment backgrounds such as Uttar Pradesh (UP) balancing the twin agendas of crime prevention and punishment is definitely no easy task. In the past year the ruling party of the so-called ‘lawless state’ has faced some tough headlines for a number of heinous crimes but as is often the case with some media outlets (and political counterparts) the good and productive work that is being done is completely side stepped and ignored resulting in a media maelstrom and creating a negative ripple effect across the globe. Every Government, be that in India, UK, or France must work continuously to tackle the issues of law and order and the current administration under the leadership of the Chief Minister (CM), Akhilesh Yadav, is doing just that. Since Yadav’s inception his Government has done more than any previous Government to tackle crime in UP, be it for counterfeiting and cyber crime up to more shocking offences, such as crimes against children, and women, those involving drugs and narcotics and a range of crimes that are far less well known in the west like foeticide and human trafficking. But yet where are the headlines that mention all of the above? One person with a good overview of the real picture of crime impacting the common man on the street is Dr. Roshan Jacob, a female district
Maintaining law and order is a tough challenge in any sprawling state with a huge population such as Uttar Pradesh but under Chief Minister Akhilesh Yadav administration is tackling the issue head on and implementing tough-on-crime measures in a move to make the streets of Uttar Pradesh safer for both its residents and many thousands of tourists. Robert Windsor reports magistrate within the justice system in Kanpur, one of the top 10 industrial cities in UP. In her capacity as district magistrate, Dr. Jacobs’ role is to supervise and monitor the development of the district as a whole giving her thorough insight into the challenges and needs of everyday citizens. Jacob is firmly of the view that there have been significant improvements in dealing with crime under the new administration. “Crime is certainly higher than we would like but crimes in general are lower since the Chief Minister came to office. A lot of measures have been taken by Akhilesh Yadav to keep crime at bay, particularly crime related to women. We have the women’s Power Line, of course, but each district has also taken up its own initiatives and we have started a women’s cell,” she commented. Tackling crime against women is a major focus and priority for the present administration. “The CM is trying to take initiatives, make reforms and implement policies to have zero tolerance for crimes against women. Suppose a woman has been subjected to any offence like teasing or purse snatching or rape,” says Jacob. “We ensure that once she calls us, everything from her medical
examination, to counseling, to lodging the paperwork, to nabbing the culprits will happen within 24 hours.” If a female falls victim to a crime of a sexual nature, every point of contact from there on will be with other women. “When they dial the dedicated telephone line, a woman will answer and a vehicle from a dedicated women’s crime fleet is dispatched with a female officer in it to look after the victim of the crime,” says Jacob. Not everyone in UP is as bullish about the swift effectiveness of the new policing initiatives. The typical policewoman on the street has a different take on things: “Change is very slow. We are not seeing any remarkable change in the situation,” says Bapita Singh, circle police officer in UP. Singh’s view is that the basic infrastructure of society lends itself to tolerating crimes against women: “In the lower strata of society, crimes like rape and molestation and other crimes against women, the girls or women are unattended. This means that they don’t have parents looking after them. They are more prone to sexual harassment and rape because they don’t have their family around to help and protect them.” It goes further than that. “Research shows that 65 per cent of victims of rape or molestation don’t have a toilet in their home and so they have to go out at night and this is when they become vulnerable,” says Singh. This particular problem is being tackled at both the national and state
Babita Singh, circle police officer, UP
level with PM Modi’s campaign of toilets before temples, a campaign to ensure that money is diverted to building toilets before the building of any more religious shrines. Singh is clear that the way forward involves a humanitarian vision like the one being espoused by the Chief Minister. “The CM is doing a lot to improve women’s security but there is a lot still to be done. You can make new laws but there is still an implementation issue.” When Singh is asked what sort of further improvements can one hope to see and what more is needed she responds, “We still need more female police officers. Women officers deal with people more sensitively. There is also a need for more and better training of officers. There is still a lack of professionalism in the police force and a need for more modernisation. We still lack resources and equipment such as non-lethal weapons and vehicles. We need to see modern control rooms introduced in every part of the state.” Overall the state has become much more serious about the analysis of crime statistics to ensure that real improvements are being made and that crime is on the decrease. This involves introducing crime control measures while establishing crime units that utilise more scientific crime procedures to assess and deal with crime. It also involves engaging anti-corruption agents like Hitesh Awasthi, Additional Director General of crime for UP (pictured). Awasthi takes a dim view of people
who suggest that some sectors of society do not have access to fair due process in the criminal justice system. “Such a perception is in the domain of imagination. As a practitioner, I would say that this is definitely not true. If there is such a perception then we need to dispel it,” says Awasthi. Awasthi warms to the theme of misperceptions that surround UP and much of India when it comes to dealing with and tackling crime. “Transparency International [a global civil society organisation] shows that India’s transparency has gone up 14 or 15 positions in one year. Perceptions keep changing and things are improving all the time,” says Awasthi. These improvements are ongoing and include a recognition that the state needs to beef up its police force. At present UP has about 141 police officers for every 100,000 people while the global average for developed countries is around 300 per 100,000. As one of the chief ministers priorities there is a massive recruitment drive underway. “We are in the process of recruiting 40,000 new constables. We are putting in advanced control rooms with upgraded technology, with vehicles of their own,” says Awasthi. “UP is amongst the safest states in India, within the top 10 in
Hitesh Awasthi, Additional Director General of crime
India,” Awasthi says. But there is still room for improvement and this is why there are so many initiatives being undertaken to reduce crime rates overall but particularly those that might involve women, tourists and foreign investment. “Some years ago as an experiment, we introduced tourism police in Agra who are at least bilingual,” says Awasthi. Agra is home to the Taj Mahal and India’s top tourist spot. “One of the issues that tourists might find in rural areas is that the police officer might not speak his language. The tourism police in Agra have been working for 10 to 12 years very successfully. They know how to deal with tourist-related crimes like lost or stolen passports and visa problems.” Crime and corruption are evident in every society in the world and UP is no different. How swiftly real change can be seen to be taking place will dictate how fast the state will develop both socially and economically. Chief minister Yadav has made the safety and security of women and crime prevention a priority by investing in initiatives, policies and programs to make things better both for women and for the common person on the street. Even though change takes time, based on the early results at the grassroots level things seem to be heading in a positive direction.
UTTAR PRADESH 7
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The rise of
female empowerment Addressing the issue of gender equality in India isn’t an easy task, as women’s economic empowerment requires sound public policies, a holistic approach, in addition to a longterm commitment. To address the issue of women’s rights, the Government of Uttar Pradesh is helping to tear down barriers for its female population, as they understand that to help women is to help society. Georgia Hunter investigates
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HE developing world does not enjoy a reputation for being particularly pro-women. Very often the reasons for culturally ingrained misogyny are deeply engrained in traditional, religious or societal environments with the realities rarely palatable to observers in the west. A recent study by the Institute of Applied Manpower Research that focused on low female employment in a period of high growth drew insights from both Uttar Pradesh (UP) and Gujarat and discovered that the most pressing problems facing females were related to conditions of work, including low wages, long work hours, physical exhaustion and health hazards as well as that of physical infrastructure like roads and method of conveyance. The study found that household members were not averse to the idea of women participating in the workforce even though this willingness in most cases was distress-driven. Revealingly, the study found that the most fundamental problem that persisted was the mentality of male supremacy at the workplace, with females being treated as inferior in every way. The study also concluded that one practical and visible solution lay in facilitating skills training programmes for women substantiated with follow up actions that were meaningful rather than simply going through the motions. Absence of skills training programmes, particularly for women, remains a major concern not only in UP but throughout the country. So how does UP fare on the scale of female empowerment? Steps are being taken by the Chief Minister (CM) Akhilesh Yadav to ensure that the empowerment, safety and security of women are one of the top priorities for the state. “As a father of two young girls the security and safety of all girls and women is important to me. Our Government wants all the girls in the state to be safe, and secure and have opportunities for education and empowerment. Only then will our state succeed,” says Yadav. At the end of December 2014 the Uttar Pradesh cabinet made a significant decision to form a ‘State Women Empowerment
UP has been doing a lot to secure the safety of women. Dimple Yadav, a Member of Parliament for the constituency of Kannauj and wife of the Chief Minister
Mission’ under the chairmanship of the Chief Minister himself. The task of the mission will be to ensure coordination with respective departments for implementation of various welfare schemes for the empowerment of women. The mission will monitor the implementation of such schemes and projects while the committee will oversee its functioning. Elsewhere in conjunction with the World Bank the UP Government is working on a pro-poor tourism development project with part of it promoting endogenous job opportunities for the poor population living in and/or close to selected tourist destinations, with an emphasis on increasing income generation opportunities for women. Dimple Yadav, a Member of Parliament for the constituency of Kannauj and wife of the Chief Minister (pictured), is living proof that gender equality is slowly but surely coming to the fore in UP. If fact her rise within the Samajwadi Party (SP) is being regarded as a boost to the party’s stand on women’s empowerment, as the SP makes efforts to move away from a traditional patriarchal mindset. Just because attitudes to women are starting to change in UP it doesn’t translate to it being easy for women
to strike out a career in politics. “It is very difficult for a woman to stand in politics,” says Dimple. “At a grassroots level, there are a lot of crowds that they have to deal with and you can be manhandled in such crowds. Politics is difficult as a career for a woman.” With 16 elected women representatives in the UP assembly, Dimple in the Lok Sabha, and two parliamentarians, Jaya Bachchan and Kanak Lata Singh, in the Rajya Sabha, the party is starting to focus its energies on pushing forward with the issue of greater female representation in parliament. National president of SP women’s wing, Ranjana Bajpai, said, “Mulayam Singh Yadav [SP leader] has always pitched for women’s empowerment through education and employment. Now the party is also discussing the need to raise the pitch for female representation, a subject that was never addressed seriously by the Congress or the BJP.” For some like Dr. Roshan Jacob, the District Magistrate for the Kanpur district, working in UP as a women has been a positive experience. “I have not faced any problems that I could attribute to my gender. If anything it has been quite a
positive experience. UP is a very inclusive place, they assume that you are a good person and it is a very welcoming state because of that,” says Dr Jacob. For many of the woman in the street, empowerment goes hand in hand with security. “This is a national problem. UP is not the only state that has cases of violence against women, it is all over India and it has to be taken very seriously. UP has been doing a lot to secure the safety of women. We have come up with the 1090 help line, which has solved the cases of thousands of women. We have also launched a 1090 App,” says Dimple Yadav. The important thing, as far as she is concerned is about more accountability. “A lot has to be done for women. We have to make people not only answerable but be accountable.” This is only likely to happen with senior women in a wide range of roles throughout the state, like the police force, for instance. The most senior woman officer in the Indian Police Service in UP, a veteran with 30 years service is Sutapa Sanyal, Additional Director of Police and Economic Offences and Women Issues (pictured). According to Sanyal “We have certain stereotypes that lead to certain attitudes toward women. When you have these stereotypes, of gender inequality, they have been embedded for aeons in our society and this is reflected in thought processes and what we say. That is the cause of so many instances of gender violence that happen in the state.” Since the much publicised bus rape incident in India that made the headlines across the globe, there have been a number of changes in laws both in India and in UP to ensure safety of women and the stern, strict and immediate action against criminals. “The first thing we need to do is spread awareness of these new laws,” says Sanyal. “So I go to schools, colleges and others venues and tell them about the new laws. I put up stands in malls and educate people about the new laws. Secondly, I try to connect to civil society so that people feel free to come and tell the police. Be-
cause we have a culture of silence here where people are told from childhood, don’t say anything, ignore it, everything will be OK. But the reality is that everything is not OK and it doesn’t get better. You need to make things OK. You need to put laws in place. Spread awareness. Connect with civil society.” Changing the negative image that is portrayed of UP when it comes to women’s issues poses a major challenge. The CM however appears to be determined to create a safe and secure environment where women who have been victimised or require assistance are comfortable in coming forward and reporting the crime and are provided with all of the necessary resources and support services. In addition the CM has been working to change the patriarchal mindset rampant within the state and implement tough on crime measures. “There also has to be a shift away from the patriarchal society to a situation where women are gender equal,” says Sanyal. Sanyal added: “Over the past year there has been a lot of attention paid in
I try to connect to civil society so that people feel free to come and tell the police. Sutapa Sanyal, Additional Director of Police and Economic Offences and Women Issues
A ‘power’ line, not a help line THE Women Power Line (WPL) 1090 is a unique and progressive initiative of the Uttar Pradesh (UP) state Government that aims to provide quick help to women who have been victims of harassment. A specially trained force comprised entirely of women officers was formed in 2012 to attend to calls from distressed women and ensure timely help to victims. The Facebook page of the WPL already has over half a million Likes, a sign of its popularity with the masses. Deputy Inspector General of Police of Lucknow, Navneet Sikera (pictured), is a major contributor and the man behind the success of this women’s empowerment initiative of the state. As the person in charge of the WPL, which began as a pilot project of the UP Police, Sikera is passionate about 1090, its functioning and its results. “We started 1090 in November 2012 and since then we have learned a great deal about women’s security, safety and empowerment,” says Sikera. “More than 1 million women have already spoken to us about what kind of problems there are and
what could be the possible solutions to overcome them. We could have one of the largest depositories of information on such things anywhere today.” The core issues stem from a truly societal base: “In the past, women’s security had a very low priority with the police,” says Sikera. “It was not seen as a very serious issue and there were many reasons why this was so. Victims would not come forward and most of the time we heard about it through referrers, mostly through journalists. We would then try to solve the issue informally because there was no formal system in place to deal with it.” In India, girls are taught from the age of five to ‘ignore’ and ‘tolerate’ the irresponsible behaviour of boys. Experience has shown that minor bullying and hair pulling in the sandpit can lead to far more serious behaviour later on. The statistics are sobering indeed: “92 per cent of heinous offences in India happen in the home perpetrated by a relative or someone who is very close to the girl,” says Sikera. “There is fear of
rebuke. The police might complete their investigation in three or four months but the judiciary will take seven or eight years. This is a fact. If a girl starts a complaint when she is 18 she might be 26 and married and expecting a kid by the time it comes to court. So for her, it is a lose-lose scenario.” What the system needed was a means of stopping these offences happening in the first place rather than waiting until it was too late. “That is why we introduced Power Line,” says Sikera. “We don’t call it a helpline because there is a bias in that word. It is not there to help the women. “It is there to empower them. Across the country, other helplines use the face of a traumatised woman in their advertising, a woman who needs help, who has been harassed. We did not want that. We wanted a smiling face, a confident face.” There are five elements to the 1090 initiative geared towards making women more comfortable: their identity will not be disclosed; they will only talk to women police officers; they will never be called
the state to the security of women. These include the control rooms that have been upgraded and the 1090 initiative. We have introduced a website where women can feed their complaints through to the concerned district.” The introduction of women-friendly police stations with dedicated areas for women go hand in hand with a recruitment drive at all levels to encourage more women to join the force is also a positive step in the right direction. Overall it appears that the situation for women in Uttar Pradesh is finally starting to turn a corner. After years of being held in an abysmally low position within society it would seem that a return to the nobility of women once seen in the Vedic times is close. And it is within the will of the current progressive CM’s leadership that maybe, just maybe, UP will once again believe, “where women are honoured, gods reside there”.
Deputy Inspector General of Police of Lucknow, Navneet Sikera addressing pupils of Isabella Thoburn College for girls in UP and Sikera with a group of specially trained officers from the Women Power Line initiative
to a police station; the police will remain in touch with the woman until the problem is completely resolved; the police will also remain in touch with them for three months after the complaint to make sure there is no repeat offence. According to Sikera the success of the service lies in regular followups of both the victim and the accused. While the women counsellors get in touch with the victim on a regular basis, male members of our team simultaneously counsel the accused. “Our boys tell the accused that if he doesn’t stop indulging in such activities, he should know that all his details are with the police and a case will be registered against him and he will not be able to obtain a passport, driving license or any such certificate for which police verification is mandatory. Thus, 99% problems are resolved then and there. Such a warning proves to be very effective and helpful in resolving the
problem. We also tell them that they won’t be able to escape even if they change their sim-card because they will be under our surveillance and it will be better for them to mend their ways,” say Sikera. The more stubborn of the accused will be subjected to the “Friends, Family and Relatives method”, wherein the WPL personnel use call detail records (CDR) to contact and counsel the social circle of the accused. In time, the accused finds themselves in the middle of disappointed parents, jibing friends and condescending relatives. The exceptionally problematic accused is even featured on the Facebook page of the WPL, inviting scorn from the 7,000 subscribers to the page. The sad fact is that 50 per cent of women in UP are illiterate and many have had a lifetime of harassment and domestic violence. Perhaps 1090 could be just what they have been waiting for. In the
two years since the initiative was launched over 1 million calls have been received, cataloguing 288,000 serious complaints and the team has solved 282,000 of them with the balance of 6,000 still in the process of being addressed. “Whether shamed, scared or tactical, 14,790 of reported harassers have in fact, abandoned not only their unholy pursuits but also their SIM cards after receiving calls from the WPL. “The phone numbers have simply gone out of service. The accused may switch to another SIM card, but they will surely think twice before committing the act again,” says Sikera. For all its detractors that may reject the service as a gimmick, the numbers speak for themselves. WPL has done much to change
societal views on harassment and also with the way the public sees the police, and indeed how the police see themselves. Efficiency, infrastructural superiority, worklife-balance, and job satisfaction are not terms to be heard in discourses pertaining to the Indian police, but all that is changing. The staff of WPL only work in six-hour shifts, and are not required to wear a uniform. Women constables receive a pick and drop facility, and tasks like getting the CDR of the accused take only half an hour. Sikera says the next two phases of the service will have both social media harassment and physical stalking brought under its ambit. “The WPL started as a project, but boosted by the success, it is now a mission.”
8 UTTAR PRADESH
World Business Times is a leading global provider of business intelligence and insight
Medical
26 January 2015
UP’s
Uttar Pradesh has a huge and growing medical bill. This could spell opportunity for the world’s leading health
organisations as they move in to make a both a difference and a profit at the same time. Kathryn Freeman reports DEVELOPING countries and regions all over the world struggle with getting healthcare policy right: being too soft can lead to costs that are high and unmanageable; being too hard can lead to genuine suffering amongst the people who need help most. Uttar Pradesh (UP) has taken a doubleheaded approach to solving its present and future healthcare issues by improving the standard of healthcare offered to residents throughout towns and villages and also investing simultaneously in healthcare education to prepare a greater supply of medical professionals in the future. As with much of the developing world, nutrition is one of the first essential healthcare issues that needs to be addressed. For this reason the UP Government launched the ‘State Nutrition Mission’ in November 2014 to address the problem of malnutrition in children head on. The target of the initiative is to make the state malnutrition-free and give a lasting gift of a healthy life to the children of the state. On a broader scale, under the leadership of the Chief Minister (CM) Akhilesh Yadav and his team, hospital admission fees have recently been waived for all patients while free treatment and diagnostic tests have been extended to below the poverty line cardholders. In-patients in UP’s hospitals are now given medicine for five days rather than three days while patients undergoing treatments of a longer duration are now given medicine for 15 days free of charge. Looking towards medical education, the present Government has added 500 seats for medical students in the state and new medical colleges have been inaugurated in Kannauj, Azamgarh and Jalaun districts, resulting in an increase of 300 seats under the Bachelor of Medicine and Bachelor of Surgery courses. A further 100 seats each are proposed under the first phase in Jaunpur, Chandauli and Banda districts. These initiatives are being augmented
by the addition of 13 postgraduate seats in the Rural Institute of Medical Sciences in Safai, Etawah, 11 postgraduate seats to the medical college in Gorakhpur, and five postgraduate seats to the medical college in Jhansi. The Government also has plans to establish new medical institutes in the state and a cancer institute in Lucknow district is being planned as a high profile initiative. Naturally, these initiatives are a serious drain on the public coffers, but are indicative of the high importance being placed on the future of healthcare services in the state by the Government. A further development sees a medical complex known as Medanta-Awadh being developed in an area of 12 acres in Lucknow by Dr. Naresh Trehan to offer comprehensive advanced healthcare. This 1,000-bed specialty hospital will be equipped with facilities that include 30 operating theatres, a 300-bed intensive care unit, an Unani medical centre focused on a form of traditional medicine, an Ayurvedic medical centre, a research and development centre, a healthcare business process outsourcing (BPO), offices of multi national healthcare and drug companies, ancillary and supportive services and residential premises. Slightly lower profile initiatives include the setting up of new medical colleges in Budaun, Jaunpur and Chandauli districts while the state’s first postgraduate super specialty paediatric hospital and educational institute is planned for Noida. The Minister for Medical & Health, Family Welfare, Women and Child Welfare for UP, Ahmad Hasan, lays much of the credit for the robust development of the healthcare sector at the feet of the CM. “Our state has improved in every front on the healthcare aspect and we are working harder to improve even more in all aspects of healthcare delivery. The CM governs under difficult and challenging
mission
Ahmad Hasan, Minister for Medical & Health, Family Welfare, Women and Child Welfare Photo courtesy: Soumitra Ghosh
circumstances and despite this he has increased the confidence of the poor in UP for healthcare.” He added, “One of the first things that was in his manifesto concerned giving poor people access to free medicine. The previous Government only gave medications free to for a period of three days whereas this administration extended that to five days. If people live in rural areas, then the hospitals have been given enough funding to give them medicine for 15 days. Twenty per cent of the hospital budget was allocated towards that.” The cost of this initiative earmarked for the supply of medicine alone is about $50 million per year. Another advance seen as part of this initiative is that the list of essential medicines that can be given to hospitals has been revised and updated and now includes a total of 431 medicines. “To make sure that hospitals don’t run out of medicine, the CM has launched an IT solution that monitors the availability of medicine in each district hospital, online. The software also monitors if the supplier
has dispatched the order for medicine, when he receives it and also when the suppliers receive payments. These reforms have been initiated already in a new state-wide drug procurement and inventory system,” says Arvind Kumar, Prinicpal Secretary Medical, Health, and Family Department. In order to avoid the problems caused by the supply of counterfeit medicine sold at bargain basement prices, the purchasing process is transparent and open to tender. “Any pharmaceutical company anywhere in the world can come in and tender for the supply of these drugs and they will get the contract as long as their cost is the lowest,” says Kumar. Different parts of the state have different medical requirements although some communicable diseases like tuberculosis are quite common throughout the state. As the general level of affluence slowly rises in UP, incidences of cardiovascular diseases are increasing but more generally doctors have to deal with illnesses such as common fever and diabetes. Some localised areas suffer acutely from cases of Japanese encephalitis and encephalitis syndrome. The state’s largesse does not end at free medicine. “The Government has also given free X-rays and free blood testing for everyone and this is unique in India. There used to be a bed rental fee of 35 rupees ($0.55) in the hospitals and this administration has done away with that so that a bed is now free,” says Kumar. “But one of the major achievements of this administration is the health services working with the private sector to provide ambulance services. This administration has introduced around 1,000 new ambulances into the system.” This is a crucial development in a state that is overwhelming rural. The introduction of a centralised call centre via a 108 telephone number means that anyone can call for free and be picked up within 20 minutes from any
The International Oncology Centre is a world class cancer care centre in Noida, Uttar Pradesh
urban area. In rural areas the response time is 30 minutes and there is no charge for transportation, treatment or diagnostics. This ambulance fleet looks after about 250,000 patients every month and now represents one of the biggest ambulance services operating anywhere in India today. “There have also been big strides in bringing down the maternal mortality rate
and the infant mortality rate. Mothers and babies have a dedicated fleet of ambulances that can be accessed via a 102 telephone number,” says Kumar. This initiative is supplemented in hospitals with free food for pregnant women. “This is a key step in enhancing institutional deliveries rather than home deliveries and this has helped reduce mortality rates,” added Kumar, hinting at the drive to have women choose to deliver their baby in the sterile environment of a hospital rather than at home where sanitation levels are variable at best. Inevitably, with more people demanding access to better health services, the demand for new doctors and support staff becomes more of a problem. There has been an increase of about 10 million visits in outpatients departments over recent years. “Human resources is a challenge for us,” comments Kumar. “We need more specialists. Over the past three months we have been able to attract 1,800 new doctors into the public sector. This has been achieved by linking pay scales to length of service rather than to positions available.”
The instance of non-communicable diseases is increasing in UP with cancer and diabetes on the rise. These illnesses are difficult to handle in the primary healthcare sector and as a result the tertiary healthcare sector needs to be expanded to meet the demand. “The Government of UP is giving 10 acres of land free of cost in Lucknow so that public–private partnerships (PPP) can set up super specialities in at least two disciplines: one has to be cardiovascular and other discipline the PPP partner can choose. Within three years the PPP partner would have to have set up a 500bed hospital and reach 1,000 beds within 12 years. And at least 50 per cent of the beds will have to be charged at controlled, central Government rates,” says Kumar. There is a recognition that the Government does not have the bandwidth to do it all itself. It needs expert advice and guidance from professionals. This is an area where overseas companies with good track records are most sought after. But commercial input is not restricted to hospitals and clinics alone. “The other project that we are running on the PPP model is in the ambulance services. We purchase the ambulances and we open the sector up to private participants to run the fleet, to bring in HR and operate them on a monthly fixed cost basis. “There is also an opportunity for setting up nephrology centres. Kidney problems are becoming more prevalent and there is a growing need for dialysis centres,” says Hasan. As time goes on the opportunities for lucrative partnerships that will help the health of the people of the state are likely to grow rather than diminish. The population of UP is huge and growing and with it will grow the demand for high quality medical services. Quite rapidly the demands will shift from dealing with third world illnesses to developed world ailments. For investors, healthcare in UP has the potential to be a world of unlimited opportunity.
from people indicating their willingness to come and join the programme and be trained and then find a job,” says Kumar. “They have the freedom to choose the sector that interests them most.” The Government knows that its best chance of rolling out this kind of initiative successfully lies in engaging with the best suppliers to achieve the best outcomes. “We have engaged 85 training companies to do the work for us, paid for by both the state and national Government. The training companies are allocated to geographical areas,” says Kumar. And in order to keep them on their toes, “Training companies are only paid when 60 per cent of the intake for a year is in full employment. They are also subjected to tests to make sure that they are delivering a quality product all the time.” This is a relatively new initiative that started in June 2013 with training commencing in February 2014. Since then more than 100,000 people have been trained through the three or four centres operating in every district. Over 20,000 assessments have been done thus far and approximately 9,000 workers have qualified with 2,000 having found full time employment. It looks like a very promising start. “This was one of the CM’s initiatives,” says Kumar. “This is very close to his heart and he has inspected some of the centres for himself and spoken to the trainees. He personally thinks that this can be a game changer for UP and can turn the state around. Our target over the next few years
is to have 1 million people trained and 60 per cent absorbed into the workforce.” To date the state Government has signed a number of memorandums of understanding (MoU) with reputed private companies to provide vocational training and employment to those enrolled with the ITTs and polytechnics. The Government had signed such flexi-MoUs with some companies earlier as well, who have gone on to commit not only to train several thousands of the state youth, but also provide employment to most of these candidates after successful completion of their modules. At a grassroots level the UP Government has often been lambasted for poor literacy rates among females and children but to change this the Government has been working alongside voluntary organisations, such as the likes of UNICEF, and making radical reforms in the educational system itself. These initiatives have resulted in an 11.4 per cent rise in literacy rates. According to the last census report published in 2011, the literacy rate in the state was 69.72 per cent, a noticeable improvement when compared to the literacy rate of 56.27 per cent recorded in 2001 during the previous census. It is easy to understand why there has been a rise, at the other end of the spectrum, as the free education being offered to children between the ages of six and 14 is believed to be key. After the age of 14, youngsters are being offered a comprehensive programme of skills development to help them find jobs. In all it is believed that this should lead to over 2.3 million young people in the age group of 14 to 35 years receiving training for three years. In December of 2014 CM Akhilesh Yadav told reporters that he was keen to see uniformity in the education system in UP, “We want everyone to get qualitative education. If basic, secondary and higher education is improved, the results of our future will be very different... it will change the face of our state and our nation.”
Our state has improved in every front on the healthcare aspect.
UP shines spotlight on youth education Uttar Pradesh has a population of 200 million with 65 per cent under the age of 35. If the young generation is given access to a quality education, it will create a formidable talent bench and a modern workforce that is to be reckoned with. George Mitchell reports THE state of Uttar Pradesh (UP) has long been established as one of the educational hubs of India. Its rich history of education and learning dates back to before the British settled in India. On the arrival of the British came the concept of an elaborate school and college educational system that was subsequently carried forward by India and the state Government authorities post independence. Today, the green shoots of the new educational age are almost everywhere in UP as the state seeks to educate and train its young hopefuls for the opportunities of tomorrow. An Indian Information Technology Institute (IIIT) is earmarked
Abishek Mishra, Minister of Vocational Education & Skilled Development
for a 50-acre site on Chair-Ganjaria farm in Lucknow as part of a collaborative joint venture between the UP Government, the federal Government of India and UP Electronics. With the foundation stone being laid in October 2014 the facility will have 120 seats in year one, 180 seats in year two and 300 seats in year three. In addition to this, 19,760 seats have been added within the Industrial Training Institutes (ITIs) in 2013-14, thus providing more opportunities of employment to UP’s youth. ITI institutes specialise in teaching hands-on skills to young people depending on the trade that they want to enter. These can range from electrical, mechanical and services to retail, hospitality and health. Four engineering colleges have been set up in Ambedkarnagar, Azamgarh, Banda and Bijnor with a collective capacity of 300 and a further three engineering colleges will be established by 2016-17 in Sonbhadra, Mainpuri and Kannauj thus creating another 150 seats each. These colleges are being supplemented with eight new polytechnics in the Government sector and 50 in the private sector catering to the needs of around 14,000 students. Two new Government universities have also been established in the state while 42 new Government degree colleges have been established in the last two years. Minister of Vocational Education & Skilled Development, Abishek Mishra, a former professor of IIM-Ahmedabad,
says, “We realised that the level of training and level of skill in our population was extremely low; only about 2 per cent of the population had any formal training. We looked at other countries such as the UK, Germany and Japan where the level of skilled training given to the manpower was about 60 to 70 per cent, so almost everybody had some form of training. “What our Chief Minister (CM) did then was look at this and review the funding allocation received from both the state, and the main Government. He then made the decision to restructure the way our departments do things by pooling all funds into one pot. It was a structuring innovation – one department would look after all the training. Which is how the Uttar Pradesh Skill Development mission was created. We were the first state in the country to do this and the Government of India is now doing something similar, a year after we first created it.” Mishra added: “This is a big country with huge human resources. It is a demographic dividend so we want to train them and get the best out of them. Research suggests that there is a skills manpower gap of nearly 50 million globally so if we can train our people we can fill some of that gap. They need to be given the right kind of skills for industry.” The methodology of the state education system has changed to reflect the new demands of the marketplace. Bhuvnesh Kumar, Secretary, Vocational Education
& Skill Development for the Government of UP says, “In the past we used to give people general training but this is no longer enough. We had to skew it to offer specific skills, which is what we do now. We did this by talking to industry and asking them what sorts of skills they wanted to see in workers and we met that demand.” This gives some sense of the collaborative nature of what the state Government is trying to pull off by working closely with the private sector. It is the private sector that will benefit most from this kind of advance. “We know what sorts of roles there are to be filled from plumbers to electricians to security guards,” says Kumar. Sector Skills Councils define what skills are needed and the state educational and training apparatus tries to match the demand. Sector Skills Councils are not Government bodies but private enterprises headed by industry leaders and HR professionals. They define the job skills, skills levels and curriculum that need to be taught and then the state provides the training. How does the Government go about attracting candidates to take advantage of this matching service? “We advertised broadly and told people that we were building these training institutes and asked interested people to contact us. This was done by the state itself and funded by the state Government under the Uttar Pradesh Skill Development mission banner. We got 4.6 million registrations on that website