Economic Infrastructure of Haryana

By: EconomyWatch   Date: 29 June 2010

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Airport : Chandigarh Airport

Road

Haryana is a trend setter in the field of passenger transport. It has total length of 23684 kilometers. The remotest parts of the state are linked with mettaled roads. its moders bus fleet of 3,864 buses covers a distance of 1.15 million Kilometers per day. It was the first State in the country to introduce luxury video coaches.

The state government proposes to construct Express highway and free ways for speedier vehicular traffic. Government encourages private sector investment  in this sector for upgradation of roads, construction of ROB and BOT basis including four lane ROB. 

National Highway No.1, with four-laning half-way complete, passes through Haryana from Delhi to Ambala, linking Punjab, H.P. and  J&K.
National Highway No.2, (Delhi-Mathura Road), with four-laning in progress passing through Faridabad and linking vast areas to U.P., M.P. etc. right up to Bombay.
National Highway No.8 (Delhi-Jaipur Highway), four-laning already taken in hand, passes through prestigious industrial estate Gurgaon, Industrial Model Township Manesar, and Growth Centre Bawal and linking vast areas right upto Ahemdabad and Bombay. 

National Highway No.10 passes through Haryana from Delhi to Dabwali. 
Kilometers of National Highways: 656 Kms
Kilometers of State Highways: 3135 Kms
Kilometers of District roads: 1587 Kms
Kilometers of rural and other roads: 17190 Kms 

 

Power

Haryana State has always given high priority to the expansion of electricity infrastructure, as it is one of most important inputs for the development of the State. Haryana was the first State in the country to achieve 100% rural electrification in 1970.

Haryana Power Sector has recently been restructured by establishing two separate Government owned Corporation: Haryana Vidyut Prasaran Nigam Limited (TRANSCO) and Haryana Power Generation Corporation Limited (GENCO). Earlier the power sector was being managed by the State owned Haryana State Electricity Board (HSEB).

The two new corporations were established on 14th August, 1998 under the provisions of Haryana Electricity Reforms Act. 1997.

GENCO is responsible for operation and maintenance and expansion of existing Panipat and Faridabad Thermal Power Stations and Western Yamuna Canal Hydro-Electric Project.

TRANSCO is to handle the purchase of power and wheel it for bulk distribution in the State.

For retail distribution of power, two state owned distribution companies are being established which will be converted into joint venture companies with majority equity holding of the private sector.

Haryana Government has constituted an independent Haryana Electricity Regulatory Commission (HERC), under the Haryana Electricity Reforms Act, 1997 to aid and advise the State Government on the development of power sector and take appropriate steps to balance the interest of consumers, power entities and generation companies.

A massive investment of over US $ 1.4 billion has been planned towards rehabilitation and expansion of the power transmission and distribution over the next 8-10 years. This would include emphasis on demand side management and efficiency improvement measures.

 

Achievements

The total power availability to the state was 1269 Million Units during 1997-98 and 1341 Million Units. During 1998-99. The average power availability has increased from 348 LU/day during 1997-98 to 367 LU/day during 1998-99.

A record power supply of 518.40 LU was recorded on 25.09.1999 compared to the highest figure of 452.05 LU supplied during 1998-99 on a single day on 09.08.1998.

The construction of  210 MW unit No. 6 at Panipat Thermal Power Station is in full swing and is expected  to be completed by December 2000. 

The first unit of 143 MW Faridabad Gas Based Power Project (432 MW) of NTPC has been commissioned on 29.06.1999. These and 143 MW unit has also been commissioned recently and it is on trial operation. the third combined cycle unit of 146 MW is scheduled to be commissioned by June 2000.

A coal based power project (2x250 MW) is being constructed at Yamunanagar for which the competitive bids have been invited through global tendering process.

Haryana  is one of the forerunners to undertake in-depth reforms in the power sector. 
Private sector investment is invited in generation and distribution of power in the State.
International Financial Institutions viz. The World Bank, OFCF (Japan), DFID (UK), CIDA (Canada) and USAID have assured financial assistance for the form project. Out of the US $ 600 million World Band loan, first tranche of US $ 60 million already made available and development works being implemented. 
Haryana State provides an excellent opportunity for the international giants to participate on the large scale power sector investment programme. 

The state Government is committed to provide round the clock uninterrupted power supply to all its consumers,  Power scene since 1967:

 

Communication

Haryana has a state-wide network of efficient telecommunication facilities. At the close of 1996-97, these are: 

The State has 784 telephone exchanges out of which 773 are electronic.
94 towns including all the 81 Municipal Areas have STD/ISD facilities. 
6510 out of 7018 villages have been linked with telephone facilities. 
320 more villages are planned to be covered during 1997-98.
Total number of live connections at the close of 1996-97 are 3,55,314. 

A mobile telecommunication network is already under implementation and it is expected that in the next two years the entire State will be covered. Important areas around Delhi are already part of Local Delhi Mobile Telecommunication System. This network system would easily cover major towns like Faridabad, Gurgaon, Bahadurgarh and Kundli.

 

Rail

Haryana is well connected on the rail network. The main railway routes passing through Haryana are:

  • Amritsar-Delhi
  • Rewari-Ahamdabad
  • Bhiwani-Rohtak-Delhi
  • Ambala-Ferozepur
  • Delhi-Ferozepur
  • Kalka-Jodhpur
  • Kalka-Hawrah
  • Amritsar-Hawrah
  • Delhi-Shimla

Under the NCR there is already a proposal to provide rail corridor connecting towns around Delhi linking the major satellite towns like Faridabad, Gurgaon, Bahadurgarh, Kundli etc. Similarity, there is also a proposal to provide rapid mass transportation system between Delhi and these satellite towns.

 

Financial Infrastructure

Haryana Financial Corporation (HFC) and the Haryana State Industrial Development Corporation (HSIDC) are the two state financial institutions engaged in providing financial assistance to the industrial units. 

 

Financial Services

 

Term Loans

Haryana State Industrial Development Corporation provides term loan upto Rs. 4 crore (Rs. 2.50 crore under IDBI refinance scheme) to the projects with a capital cost not exceeding Rs. 10 crore. The projects with investment beyond Rs. 10 crore are also considered on selective basis for financing. Haryana Financial Corporation (HFC) also provides term loans upto Rs. 2.40 crore to the units where capital and free reserves are not more than 5 crore. The loan is to be paid normally in 7 to 9 years after a moratorium of one to two years, depending upon merits of each case. Projects having capital investment of Rs. 10 crore and above are financed by all India Financial Institutions like IDBI, IFCI, ICICI, LIC/GIC. Besides the industrial projects, the term loans are also available for setting up hospitals/nursing homes, tourism related facilities like hotels/amusement parks/cultural and goods transport services. 

Merchant Banking 

HSIDC started providing merchant banking services after getting category-I accredition from Securities and Exchange Board of India (SEBI) in 1992-93. An incisive foray has been made in the field of issue management since then. The Corporation also accepts the assignments of lead managers in addition to acting as advisors and co-managers to public issues besides carrying on the activity of providing underwriting support to public and right issues.

 

Equipment Refinance Scheme 

HSIDC and HFC have been providing loan under Equipment Refinance Scheme to various industries in Haryana. Under the scheme, an existing unit with a good track record can avail assistance for replacement, marginal expansion or diversification. The loan under this scheme is availed within 6 months of the sanction and to be repaid with 2 to 5 years.

 

Leasing

HSIDC and HFC are also providing lease assistance under the Lease Finance Scheme. 

Underwriting of Public Issues 

HSIDC extends the underwriting support to public issues of those industrial companies which have their base in Haryana. 

Haryana has a wide institutional network for providing land, infrastructure and assistance to the entrepreneurs. It has formed various Industrial Promotion Agencies to tend to industries and help them grow and resolve their problems, if any, encountered by them. 

 

National Equity Fund 

HFC operates the scheme, promoted by SIDBI under the name of National Equity Fund Scheme which provides equity type of support to entrepreneurs for setting up new projects under tiny and small scale sectors. The promoter's contribution in this scheme is 10%. HFC provides 65% as term loan and SIDBI gives assistance of 25% as soft loan towards equity basis of the project. The project cost should not exceed Rs. 10 lacs. Similar scheme is also being operated under the name of Mahila Udhyam Nidhi Scheme specially meant for women entrepreneurs

Sr. No.  Description Financial Year 1967 Financial Year 1999
1 Installed Capacity (MW) 343 2.447
2 No. of Sub-Stations  47 414
3 Length of transmission and distribution lines (Kms.)  18,663 1,68,986
4 Connected Load (MW)  371.40  6987.25
5  No. of Consumers 3,12,000  33,80,456
6 No. of tubewell connections  20,000  3,54,374
7 No. of industrial connections  9,749 71,651
8 Average daily power availability (Lakh units per day)  17.80  367.28
9 Per capita consumption (Units) 57 450
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