Department of Industries and Commerce
Transcription
Department of Industries and Commerce
GREEN KASHMIR SKILLED KASHMIR INVESTMENT OPPORTUNITIES IN Azad Kashmir (Pakistan) Department of Industries & Commerce Azad Govt. of the State of Jammu and Kashmir Muzaffarabad Contact Nos. Sectary Industries &Commerce 058810-39213 Director Industries &Commerce 058810- 42042 Joint Director Industries Mirpur 058610-44207 Message by Sardar Attique Ahmed Khan Prime Minister of Azad Jammu & Kashmir Nature has very judiciously endowed the State of Jammu & Kashmir with natural recourses amongst which hydropower generation, Minerals, Tourism, Horticulture, Water Sports, Cottage Industry, Kashmir Handicrafts and Forests are significant. However, these resources have not been tapped commensurate with their potentials. Govt. of AJ&K has accorded priority to harness these endowments for socioeconomic development. A comprehensive action plan has been prepared for sustainable socio-economic development of the State. A lucrative package of incentives for industrialization has also been finalized. My Govt. has established AJ&K Technical Education & Vocational Training Authority (TEVTA) for skill development required to translate the available potential in to economic resources. All these efforts are aimed at making AJ&K a model State. Govt. has further simplified and liberalized the prevalent rules, regulations and procedures aiming at creating conductive environments for industrialization. All the required Govt. approvals are made available within days. To further facilitate investors a new Industrial Estate is being established at Mirpur, besides, improving the existing industrial estates at Muzaffarabad, Kotli, Rawalakot, Bhimber and Mirpur Districts. My Govt. is committed to extend legal protection to the private investment and guarantees repatriation of investment, besides profits. The earthquake of 8th October 2005 has damaged severely infrastructure and other civic amenities in the four Districts of the State. The reconstruction and rehabilitation offer another investment opportunity to the entrepreneurs. Government is planning to organize an Over seas Kashmir Industrial Investment Conference, either in Mirpur or Islamabad in near future, keeping in view the convenience of the entrepreneurs. I anticipate that interested investors shall plan project proposals on the aforementioned endowment projects and participate in the conference. Sardar Attique Ahmed Khan AN INTRODUCTION TO AJ&K Azad Jammu and Kashmir is the liberated part of the State of Jammu and Kashmir. It lies between longitude 73o-75o and latitude of 33o–36o and comprises of 5,134 sq. miles or 13,297 sq. kms area. The topography is mainly hilly and mountainous with valleys and plains. The districts of Neelum, Muzaffarabad, Bagh, Sudhnoti and Poonch are mostly mountainous for being lying at the foot hills of the Himalayas. The districts of Bhimber, Mirpur and Kotli have broad valleys and flat areas. The mountainous areas are full of natural beauty, with thick lush green forests, precious minerals, fast flowing rivers and streams. The main rivers are Jehlum, Neelum and Poonch. Climatically, Azad Kashmir enjoys a considerable measure of variety. The North and North western mountainous areas are extremely cold in winter while in summer are very pleasant. The district head quarters of Mirpur, Kotli and Bhimber are extremely hot in summer while cold and dry in winter. Most of the area of the State receives monsoon rains with average rainfall up to 1300 mm annually. The population of Azad Kashmir is 3.5 million and 88% of this is living in rural areas. The literacy rate is above 60%. The average per capita income has been estimated to range from 500 to 600 US$. GOVERNMENT Azad Kashmir has a parliamentary form of Government. The President of Azad Jammu and Kashmir is the constitutional Head of the State while the Prime Minister supported by a council of Ministers, is the chief Executive. Azad Kashmir has its own Supreme and High Court, besides, Legislative Assembly comprising of 41 directly and 8 indirectly elected members. ADMINISTRATION Capital of Azad Jammu and Kashmir is situated at Muzaffarabad, while Azad Kashmir is divided into two divisions i.e. Muzaffarabad & Mirpur and eight administrative districts. The Muzaffarabad division comprises of the Districts Muzaffarabad, Neelum, Bagh, Poonch and Sudhnoti whereas, Mirpur constitutes the districts of Mirpur, Kotli and Bhimber. INDUSTRIAL SET UP At the time of Independence in 1947, the economy of Azad Jammu and Kashmir was on subsistence level. It was early 70’s, when economic development of the area started. Despite financial constraints, efforts were made in developing infrastructure for the rapid development of the area. The State of Azad Jammu and Kashmir by virtue of its topography, meteorology, hydrology and administrative set up provides adequate opportunities of investment in various sectors. The Govt. of Azad Jammu and Kashmir is encouraging investment in the following:- (i) Medium and large Industries. (ii) Kashmiri Handicrafts. (iii) Mineral Resources. (iv) Hydropower Generation. (v) Tourism. MEDIUM AND LARGE INDUSTRIES Owing to close proximity to the market of Pakistan district Mirpur and Bhimber are most suitable locations for establishment of Medium and large scale industries. EXISTING INDUSTRIES About 967 small, medium and large scale Industrial Units have been established and operating in AJ&K. DISTRICT-WISE INDUSTRIAL UNITS. Type Muzaffarabad Mirpur Bhimber Kotli Poonch Bagh Sudhnuti Total Public 1 2 3 Private 367 191 187 131 36 37 15 964 Total 368 193 187 131 36 37 15 967 TYPE OF INDUSTRY Name of Industry Nos. Name of Industry Woodwork & 208 Paper and Paper Furniture House Products Flour Mills 7 Shoe Industries Food Industries & 167 Vespa Scoter Bakeries factory Arms Factories 19 Cosmetics Crush Machines 91 Poultry Forms Main Hotels 48 Textile Mills Plastic Industries 8 Printing Press Steel Furnaces and 5 Tyre & Rubber Re-rolling mills Factory Pipe Industries 14 Steel Works Ice Factories 12 Miscellaneous Rice Mills 20 Nos. 9 13 1 3 84 11 26 0 154 67 INDUSTRIAL POLICY, AVAILABLE INCENTIVES AND FACILITATION POLICY: Govt. of AJ&K has adopted Industrial Policy of Govt. of Pakistan. Except the following, all type of industries are allowed to be established by the private sector in Azad Kashmir. a.) Arms and Ammunition b.) Security printing. c.) Explosive material d.) Radioactive material. SPECIAL INCENTIVES 1). Exemption of Industrial products from payment of sales tax for a period of five years from the date of production. 2). Repatriation of principal amount and profits without any permission of the Government for foreign investors. 3). Exemption of Octroi and Local Taxes for five years from the date of commencement of production. 4). Industrial plots are allotted in the Industrial Estates on easy installments and to be recovered in 20 years, without profit while in new industrial area this recovery is to be made in 5 years. 5). Provision of loan facilities in local as well as in foreign exchange from the nationalized banks and developed financial institutions. To provide local skilled Labor, 17 vocational 6). training Institutes and centers are functional. 7). Establishment of Dry port at Mirpur is under Process. FINANCING FACILITIES. All commercial banks and following financial Institutions in the country are providing various types of industrial loan for establishment of new industrial Units as well as for expansion, balancing, modernization and replacement of existing industrial units within the frame work of industrial/financial policies of the Govt. of Pakistan. i. Industrial Development Bank of Pakistan (IDBP). ii. Pakistan Industrial Credit and Investment Corporation (PICIC). iii. Small Business Finance Corporation (SBFC). iv. SME Bank Ltd. v. Agricultural Development Bank of Pakistan (ADBP). vi. Regional Development Finance Corporation (RDFC) INDUSTRIAL ESTATES. To accelerate the pace of development through Industrialization, the Department of Industries of Azad Jammu and Kashmir has established six industrial Estates in various districts of Azad Jammu and Kashmir providing basic infrastructure like roads, water supply, sewerage system, telephone and electricity etc. Following is the detail of Industrial Estates, graded plots and price per Kanal: Name of Industrial Estate New Industrial Area Mirpur Small Industrial Estate Bhimber Small Industrial Estate Mirpur Mini Industrial Estate Muzaffara bad Mini Industrial Estate Kotli Mini Industrial Estate Rawalakot Price per Kanal Pak Rs. 100 Kanal 50 Kanal 85,000 10 20 67,000 25 Kanal 32 8 Kanal 20 4 Kanal 35 1 Kanal 42 118 29 64 92 111 94,800 13 42 1,26,900 7 53 1,13,220 17 43 1,00,000 Mode of payment. 25 2 Kanal 34 1. 25% down payment and remaining 75% to be paid in 5 installments in 5 years for New Industrial Area Mirpur. 2. 20% down payment and remaining 80% to be paid in 20 installments in 20 years for all other Industrial Estates. PROPOSED INDUSTRIAL ESTATES 1. INDUSTRIAL ESTATE DUDYAL; DISTT. MIRPUR Land measuring 400 Kanals has been acquired and development of industrial estate is in progress. 2. KHURRI INDUSTRIAL ESTATE AT MIRPUR Acquisition of land measuring about 10000 Kanal is in process. 3. RECONSTRUCTION OPPORTUNITY ZONE (ROZ) AT MZD Land measuring almost 1000 Kanal at Garhi Dopatta has been identified for the establishment of “ROZ “at Muzaffarabad. 4. ESTABLISHMENT OF EXPORT PROCESSING ZONE AT MIRPUR. Land measuring 200 acres has been acquired, survey and contouring of the area is in process. DEMAND BASED INDUTRIES In view of the localized requirement of AJ&K there is a substantial potential for industry like food, ready-made garments, furniture & plastic products. LIST OF IDENTIFIED PROJECTS FOR AZAD KASHMIR Herbal Medicines Agricultural implements and tools Nuts and Bolts plant Calcium carbide producing unit Wooden crate making Poultry Farming Light engineering work Rice mill P.V.C Pipes Hotels Flush Door making Transport Filling station Capacitor manufacturing project Furniture industry Chip board-manufacturing Batten Board plant Marble chips and powder making Ceramic tableware Fruit and Vegetable Dehydration Spices grinding Steel furniture, grills rates etc Cement Industry Pharmaceutical Industry Silk Reeling Pre Fabricated Building Structures Solar Penal and Products Mineral Based Industry PROCEDURE FOR ESTABLISHMENT OF INDUSTRIAL UNIT Following applications. documents should be enclosed with ♦ Two copies of feasibility report of proposed project. ♦ Financial Soundness Certificate of the applicant from a recognized Bank. ♦ In case of a company, name of Shareholders/ Directors and other related details. ♦ NOC from Environmental Protection Agency of AJ&K Govt. ♦ In case of a foreigner a copy of registration from the Registrar of Companies of AJ&K Govt. ♦ Single line plan of the proposed Industrial Unit (Building). FOR FURTHER DETAILS PLEASE CONTACT ♦ Directorate of Industries Muzaffarabad AJK Pakistan. and Commerce Phone No. 058810- 42042, 43409, 62773, 43862 Fax No. 058810-43151 ♦ Joint Director Industries Mirpur AJK Pakistan Phone No. 058610-44207, 44048 Fax No. 058610-42150 ♦ Project Manager New Industrial Area Mirpur. Phone No. 058610-34471 ♦ Assistant Director Industrial Estate Bhimber. Phone No. 058650-42421 ♦ Industrial Development Officer Kotli. Phone No. 058660-47216 KASHMIRI HANDICRAFTS The territory of Jammu & Kashmir is well known for its traditional handicrafts. Kashmir has a long history of traditional crafts, including carpets weaving, embroidery, Garments, Namda Gubba, Paper Machie, Wood Crafts and Kashmiri Shawls. They all incorporate Persian designs arranged in Kashmiri style. All the crafts ware of Kashmir is made by hand, sustained by history and tradition and imbued with the very soul of the artisans. These handicrafts possess a magical power which captivates the heart of the beholder. Azad Kashmir Small Industries Corporation (AKSIC) a public sector enterprise established in 1992 is committed to promote the development of handicrafts and the economic betterment of the working craftsmen. AKSIC not only provides education and assistances to working craftsman in the field of designing but also in quality control and facilitating marketing of the products. Equipped with necessary God gifted natural resources and manned with requisite expertise, the AKSIC commits itself to honor buyers preferences and requirements in export trade and offers most generous cooperation all the time. INVESTMENT OPPORTUNITIES ♦ Investment opportunities are available in almost all traditional handicrafts. ♦ Kashmir Handicrafts Sector offers opportunities of investment to domestic and foreign entrepreneurs. ♦ A relatively low marketing cost is involved in this business because Kashmiri crafts are known Worldwide since centuries. ♦ A reasonable profit margin is available in both manufacturing and marketing of Kashmiri crafts. ♦ Crafts are environmentally friendly, hence, getting importance day by day. ♦ Technical advisory is available for project preparation, feasibility studies, loan documentation and marketing. ♦ Plots may be allotted to investors in the Industrial Estates (subject to availability) at the time of application. ♦ Tax and some other incentives are available. ♦ Experienced manpower endowed with aesthetic creativity migrated from occupied Jammu & Kashmir is now available in Azad Kashmir. FOR FURTHER DETAILS PLEASE CONTACT Azad Kashmir Small Industries Corporation, Muzaffarabad. Phone No– 058810-42848 058810-46389 MINERAL RESOURCES The geological environment of AJK is comprised of three types of rocks, i.e. sedimentary, igneous and metamorphic. The type of mineral deposits found are; industrial Minerals, gemstones, precious metals and base metals. The Industrial minerals and base metals are found in all the three rock types and thus spread in the whole of the AJK territory, whereas gemstones are confined to metamorphic terrain and occur in the upper parts of Neelum Valley. The most economically promising mineral resources of Azad Kashmir are Gemstones and Industrial minerals. In AJK mineral exploration activities started in 1973 by a State Owned Corporation (AKMIDC). Initially the emphasis was laid on assessment of potential of economic mineral deposits, having high unit value and import substitute. With the assistance of donor agencies like UNDP the Corporation succeeded in discovering various and assessing following mineral deposits. S.No Name of Mineral District Muzaffarabad 1 Limonite 2 Marble 3 Ruby 4. Graphite 5. Cement material Lime Stone+ Shale 6. Gypsum 7. Feldspar 8. Soapstone District Kotli 1. Marble 2 Bauxite 3. Fireclay 4. Coal District. Mirpur/Bhimber 1. Bentonite District. Bagh. 1 Slate 2. Pozolana Location Proved Reserves (million tons) Reshian Nuseri-Jhugian Neelum Valley Neelum Valley Muzaffarabad 00.065 tons 19.000 tons 26.000 gms 01.000 tons In-exhaust able Muzaffarabad Kundalshahi Machyara 04.000 tons 00.100 tons 00.050 tons Dhanwan Djamwam- Sawar Nikial etc. Dhanwan-SawarNikial etc. Tatapani-Bangang 02.000 tons 05.000 tons Newat-Dudyal 04.000 tons Kalamula Tholangar 01.000 tons 00.500 tons 05.000 tons 00.200 tons DIRECTORATE OF MINERAL RESOURCES Under National Mineral Policy 1995, Govt. of Azad Jammu and Kashmir has established department of Mineral Resources in 2002. The main function of the department is to issue/grant mining leases and exploration Licence to private and public sector. The department functions as regulator and ensures safety during exploitation. LICENSING PROCEDURE For mineral exploration of a virgin area a reconnaissance license is granted by department of Mineral Resources, initially for a period of one year. In case of identification of any exploration target, the entrepreneur is to apply for “Exploration Licence” having one to three years duration & extendable up to 5 years. On proving workable mineral deposits, the Exploration License is converted into long term Mining Lease for a period not exceeding thirty years. The application should be on the prescribed application form accompanied with the following documents:a. Documents showing financial soundness. b. Chalan showing receipt of application fee of Rs. 2000/- deposited in the National Bank of Pakistan in the specified head of account. c. Copies of the topographic map of the area. d. Company’s credentials confirming its financial & technical soundness. Generally, the application is finalized within a period of three months. No objection certificate from Forest and Revenue Department is to be obtained prior to the issuance of license. Exploration license can be granted for area exceeding not more than 5 sq. miles and there is no bar to hold more than one license/mining lease. Foreign investors can apply for exploration license/mining lease upon incorporation of firm/company in Pakistan/Azad Kashmir. Note:- The procedure of mining concessions is being further simplified. INVESTMENT OPPORTUNITIES Cement Material: Large deposits of mineral used in cement manufacturing (Limestone, Shale and Gypsum) are available in surrounding area of Muzaffarabad town. Keeping in view reconstruction of the earth quake affected area and construction of Kohala Hydro-Electric Project, there shall be great demand of cement in near future. Ruby: Forty million grams of Ruby has been assessed in Neelum Valley Development in collaboration Program. with Mining/marketing United Nations studies have revealed that these deposits are viable for commercial exploitation. Top quality Ruby of AJK is considered to be similar to Burma Ruby (No. 1 in the World Gem Market). Graphite: Foundry and crucible type of Graphite deposits are found in upper Neelum Valley (AJ&K), having one end 0.1 million tons reserves respectively. The mineral has been processed and up graded on pilot plant scale and found suitable for Industrial use. Pakistan is importing 5000 tons of Graphite annually worth Rs. 60 million. Exploitation of these deposits can become an import substitute. Bentonite: Five million tons of good quality Bentonite is available in Mirpur AJ&K. The mineral is suitable for bleaching edible oil and has substantial demand in the country and has also has export potential. Kashmir Ruby FOR FURTHER DETAIL PLEASE CONTACT Directorate of Mineral Resources Muzaffarabad AJK Pakistan Azad Kashmir Mineral & Industrial Development Corporation Muzaffarabad. Phone No. 058810-49109, Fax 05-8810-34306 HYDRO POWER GENERATION The State of Azad Jammu & Kashmir by virtue of its topography, meteorology and hydrology is blessed with abundant hydropower potential. A comprehensive planning of the hydropower resources of the State has been carried out by WAPDA in collaboration with international agencies. The study area comprised of a part of Jhelum River, upstream of Mangla reservoir, which lies within the territory of Azad Jammu & Kashmir. The preliminary investigations identified potential sites and recommended detailed studies on most viable sites. These investigations identified a number of sites for hydro power generation. Preliminary estimates have assessed about 5000 MW. potential power in the three major river catchments and their tributaries. HYDRO ELECTRIC POTENTIAL S.NO. 1. 2. 3. 4. 5. 6. District Muzaffarabad Bagh Kotli Sudhnoti Poonch Mirpur Total Potential MW 2800 1030 865 410 145 79 5329 At present, total demand of electricity of AJK is about 250 MW, which would increase up to 300 MW during 2007. Out of the identified potentials only 36.20 MW has been converted into resource and another 70 MW is being developed. THE POWER POLICY 2002 PROVIDES THE FOLLOWING INCENTIVES FOR INVESTORS IN PRIVATE SECTOR 1. GOVERNMENT POLICY AND SUPPORT. The power policy 2002 amended by the Govt. of Pakistan has been adopted by Govt. of Azad Jammu & Kashmir which provides guide line for investment in the development of Hydro Power having following salient features ¾ Award of raw sites on first come first served basis to interested investors who established their financial soundness to meet the equity component of investment. ¾ Award of solicited sites on the basis of competitive bidding to investors / interested investors on reimbursement of feasibility study costs. ¾ Leasing of State owned land on concessional rates for project development to investors/ developers without provision for escalation of lease rates. ¾ Support in acquisition/leasing/ purchase of private owned land through land revenue department. ¾ Support in setting up regional Receipt/ Dispatch grid for optimal utilization of capacity. ¾ Generous package for BOT implementation including 5 years grace period for extension of operation. ¾ Generous Tax/levies incentives to promote cottage industrial/agricultural units running on Hydropower projects on the concept of captive generation. 2. FISCAL REGIME. a. Customs duty at the rate of 5% on the import of plant and equipment not manufactured locally. b. Exemption of sales tax on such plant, machinery and equipment. c. Exemption is already available from income tax including turnover tax and withholding tax on imports. d. Repatriation of equity along with dividends is freely allowed, subject to the prescribed rules and regulations. e. Parties may raise local and foreign finance in accordance with regulations applicable to industry in general. GoP approval may be required in accordance with such regulations. f. Maximum indigenization shall be promoted in accordance with GoP policy. 3. FACILITATION a. Permission for power generation companies to issue registered bonds. b. Permission to issue shares at discounted prices enabling venture capitalists to provide higher rates of return, commensurate to the risks. c. Permission for foreign bank to underwrite the issued shares and bonds by the private power companies as permissible under the laws of Pakistan. d. Non-residents are allowed to purchase securities issued by Pakistani companies without the permissions of the State Bank of Pakistan and subject to the prescribed rules and regulations. e. Abolition of 5% limit on investment of equity in associated undertakings. f. Independent rating agencies are operating in Pakistan to facilitate investors in making informed division about the risk and profitability of the project company’s Bonds/TFCs. PROCEDURE FOR POWER PROJECT PROPOSALS 1 Request of Registration As project Developer / investors with PPC 2 Submission of Financial prequalification documents in accordance with Policy of PPC 3 Evaluation of financial prequalification documents and intimation to investor 3 Typ Raw solicit Review of Proposal by POE Open bidding on Min. Tariff Basic & evaluation 3S 3R-1 Issuance of LOI against Bank Guarantee for preparing feasibility study Negotiations and Agreement of tariff with lowest Bidder 3S-1 3R-2 Negotiation of Tariff by purchase 3-R 4 Signing of PPA, IA FA and WUL 5 POE : Panel of Expert Issuance of LOS against performance Guarantee LOI: Letter of Interest LOS: Letter of support PPA: Power purchase Agreement IA: Implementation Agency FA: Facilitation of Agreement WUL: Water Use license FOR FURTHER DETAIL PLEASE CONTACT Azad Jammu and Kashmir Private Power Cell B-95 Upper Chatter Housing Scheme, Muzaffarabad. Phone No. 058810-32620, Fax No. 058810-32621 TOURISM Nestling in the lapse of the Himalayas, Azad Jammu and Kashmir has very generously being blessing with scenic beauty. Its snow covered peaks, dense forests, winding rivers, turbulent streams; sweet-scented valleys, velvet green plateaus and climate varying form arctic to tropical, all together make it an excellent tourist resort. Valleys like Neelum, Jhelum, Leepa, Rawalakot, Banjosa, Samahini and Baghser unfold delightful scenic beauty and provide a feast of pleasure to discerning tourist’s eyes. Azad Kashmir is also blessed with a varied mountains landscape ranging from low hills to high mountains (2000 to 6000 meters) most suitable for soft to medium adventure tourism. The area provides excellent opportunities for rock climbing, trekking, mountaineering and summer camping. Moreover, blessed with large number of rivers streams Azad Kashmir offers great potential for white water sports, especially, rafting, canoeing and Kayaking. Infrastructure; a pre-requisite for the development of Tourism comprises wide ranging and diverse activities which requires heavy investment. The Govt. of AJ&K has developed basic infrastructure envisaging a good road network, electricity, building a large number of rest houses in the scenic areas and provided telecommunication network. FACTS FOR THE VISITORS: Tourist/Visitors from all parts of the State & Pakistan can visit Azad Jammu & Kashmir without any restriction. However, they are advised to keep their identity with them. Foreign tourists can visit Azad Kashmir except the areas situated 16 kilometers along the Line of Control (LOC). Foreigners before visiting Azad Kashmir Should contact AJK Home Department at Muzaffarabad for issuance of NOC. Note: - The Government has declared tourism as an industry; therefore, Hotels/Motels/Restaurants promoting the tourism are treated as industrial concern / units. FOR FURTHER DETAIL PLEASE CONTACT Azad Jammu and Kashmir Tourism Department Muzaffarabad. Phone No. 05-8810-39176, Fax 05-8810-34623