Why Neemrana?

Neemrana Industrial Estate

Japanese zone in Neemrana feeling the heat.

1. Taiwanese delegation excited by opportunities. in Rajasthan.
2. MOU extended for Japanese investment in Neemrana.
3. Hero Moto Corp to invest Rs2,500 crore in new plant.

Developments in neemrana

Neemrana Industrial Estate Last month, a group of 25 Japanese visitors came to Neemrana, but not to see the famous fort there. They were inspecting the site of a proposed industrial estate that has earned the sobriquet of 'Little Japan' at the drafting stage itself.About 100 km from Delhi and 60 km from Haryana's industrial hub of Manesar, Neemrana is situated on national highway (NH) 8 and beside the proposed rail freight corridor.Its geographical advantages are, however, not its only selling point. The 1,170-acre Neemrana Phase III industrial estate will not only offer big tax breaks, but also an exclusive zone to Japanese investors. Or, more specifically, auto component makers from that country. Rajasthan has further sweetened thedeal by offering to slash the 4 per cent sales tax to 0.25 per cent for these companies. In response to the proposal submitted by Japan External Trade Organisation (Jetro), the Rajasthan Industrial Development and Investment Corpora- tion (Riico) has offered to give customized plots to Japanese investors.

Said Kuldeep Ranka, managing director, RIICO: "We want to attract investments in the auto sector as it creates a lot of jobs."But Riico's offer depends on how many investors queue up for Neemrana. The deadline set for proposals isDecember 2006. By then, if 'sufficient' investment is not forthcoming from the Japanese, Neemrana will be opened to investors from other countries. So far, representatives from 35 Japanese companies have inspected the site, and 10 companies have forwarded their demand for 10-20 acres each. This adds up to more than a sixth of the 600-acre built-up area inthe complex. The Japanese, though, want more time. According to N. Noguchi, director general, Jetro, a deadline of June 2008 will be more realistic as prospective investors are still visiting the undeveloped area and reporting back to their headquarters in Japan. Lower costs are a definite plus for the proposed Little Japan, and affordable land prices are the most crucial aspect.

Gurgaon, the favourite Indian destination of Japanese auto and component companies, ran out of industrial land years ago. The Manesar and Bawal industrial estates, located further south along NH-8, too, have little vacant land left. Land prices in Manesar are touching Rs 10,000 per sq. m, while in Bawal it is hovering around Rs 2,000 per sq. m, points out Noguchi. In contrast, Neemrana promises both affordability and availability. Riico acquired some 1,170 acres in Neemrana at approximately Rs 400 per sq.m. Even if infrastructure development costs are taken to be Rs 700-800 per sq.m, it adds up to Rs 1,100-1,200 per sq.m. That is a significantly better deal than acquiring farmland around Bawal for Rs 1,500-2,000 per sq.m. And price is just one part of it. Says Y. Sei, director, Indo-Asian Development, which helped Mitsui Kinzoku set up a sheet metal part unit at Bawal: "Even if a Japanese company is willing to pay a high price, there are difficulties in ascertaining land titles and getting land use changed from farming to industrial." Neemrana's proximity to NH-8 also makes it an ideal location for a logistics hub for the Japanese companies in Gurgaon. Trading giant Itochu Corporation is already conducting a feasibility study for a logistics base at Little Japan. Plus, plans are in place for a power back up. J Power has proposed a compact power production unit at Neemrana. If things go according to Jetro's plans, it will be a self-sufficient industrial cluster run almost entirely by the Japanese.

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epip

Japanese zone in Neemrana feeling the heat JAIPUR: The industrial complex Majrakath at Neemrana, which has gained the name Japanese zone' because of a number of Japanese units coming up there, is in a state of uncertainty because of the crisis in tsunami-hit Japan. The Rajasthan Industrial Development and Investment Corporation (RIICO) was successful in developing the Japanese zone in an expanse of 1166.63 acres.

In all, 124 plots ranging from 4000 square metre to 40,000 square metre have been created and 20 plot allotments have already been made. According to the MD of RIICO, Rajendra Bhanawat, nine projects have already begun trial production.These are for manufacturing of automobile brakes components and assemblies, PP compounds, cylinder liners, air conditioners & chillers and slide adjusters. Now uncertainty looms large on the first such exclusive enclave in the country which has come up after RIICO reached an understanding with the Japan External Trade Organisation ( JETRO) to develop a zone on 1100 acres. Japanese investment worth $450 million have already come to Neemrana from Japan. At RIICO's headquarters at Jaipur, no official was willing to talk about the impact on Neemrana's Japanese zone will have because of the crisis in Japan. Japan is the sixth largest investor in India in terms of FDI with $22 billion invested in the last 10 years. Nearly 70% of this have come in the last three to four years. Of the portfolio flows that have come to India in recent times, Japan accounted for $8 billion. Out of which Neemrana received only $450 million. But the expectations were still high for future. Analysts in Jaipur now expect that the Japanese economy will take longer than expected to come out of its current soft patch owing to the earthquake and tsunami. In a highly integrated world, it is impossible to escape aftershocks of a crisis like the one in Japan. Last year, Honda Motorcycles and Scooters India Ltd (HMSIL) commenced construction of its two-wheeler manufacturing plant in Khushkhera industrial area. HMSIL planned to invest Rs 1100 crore in the unit employing 13,000 persons directly and indirectly and with the HMSIL coming to Khushkhera it was hoped that Tapukra, Neemrana and Khushkhera would become an automotive hub. But the uncertainty in Japan has put a question mark on the future. This company was to produce 12 lakh two wheelers annually.

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In ( the hindu ) Website

Taiwanese delegation excited by opportunities in Rajasthan A high-level Taiwanese delegation, led by its Deputy Minister, Council for Economic Planning and Development, Dr. Gee San, visited Neemrana in Alwar district of Rajasthan for exploring investment opportunities in the state. The delegation, which arrived here Friday, comprised of both public and private sector representatives. The meeting was jointly organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), Rajasthan State Industrial Development and Investment Corporation Limited (RIICO) and Bureau of Investment Promotion (BIP). 'We found the business opportunities available in Rajasthan very exciting,' Dr. Gee San said. The minister thanked the Rajasthan government for its proposal to provide an exclusive zone for setting up Taiwanese units - similar to the existing Japanese zone in Neemrana. Earlier, managing director of RIICO Rajendra Bhanawat said that Rajasthan had a congenial and investor-friendly environment. He added that with almost 40 percent of the Delhi Mumbai Industrial Corridor (DMIC) passing through Rajasthan, the state will have further opportunities for investment. Ritu Lohia, BIP's general manager, made a presentation outlining the investment opportunities in the state. She also invited the delegation to set up an exclusive Taiwanese zone in Rajasthan. The locations proposed were Alwar, Jaipur, Ajmer, Udaipur and Jodhpur. She said that Taiwan's electronic hardware expertise and India's software prowess can make a potent combination. The chief executive officer of Mahindra World City B.K. Subbaiah also offered a sector specific zone to the Taiwanese delegation in the Mahindra World City near Jaipur. He said that the special economic zone was an integrated business city where one could live and work in a great environment.

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dailybhasker.in

MOU extended for Japanese investment in Neemrana JAIPUR: Neemrana will soon be known more for its Japanese Park than the heritage hotel that had put it on the world map.The Rajasthan State Industrial Development & Investment Corporation (RIICO) has extended its MoU with Japanese External Trade Organization (JETRO) for another year to attract more investments by Japanese companies.

The two had signed an MoU in July 2006 to jointly promote the first exclusive Japanese Investment Zone at Neemrana.Two years and 14 investments later, the MoU has been extended to get more Japanese investments which in turn will bring modern technology and management practices. This agreement is seen as a milestone towards development of the state.With 45% of the Delhi-Mumbai Industrial Corridor (DMIC) passing through Rajasthan, the extension will assist the business alliances between the two countries by creating employment opportunities and bringing in more investment in the state. "There is immense potential for trade and investment cooperation between Japan and India. We have already set up base at the 'Japanese Investment Park' at Neemrana. The extension of the MoU would be a positive step towards improving the economic relationship between the India and Japan," said N Noguchi, director general, JETRO. According to RIICO, the total area allotted for Japanese investment at Majrakath, Neemarana, is about 271.44 acres, out of which 222.44 acres have been allotted to various companies and 49 acres of the land is reserved. Several companies like Nissin Brakes India Pvt Ltd, Mitsui Prime Advanced Composites India Pvt Ltd, Toyoda Gosei Pvt Ltd, TPR Autoparts Manufacturing India Pvt Ltd, Daikin Air-conditioning India Pvt Ltd and Imasen Electric Industrial Co Ltd are already at an advanced stage of construction.

According to official sources, a total investment of approximately Rs 1,600 crore is likely to materialize in this area, generating employment for over 3,500 people. "Rajasthan offers proximity to the entire northern region with requisite resources, power supply, land, manpower and access to a national road network. This agreement will be a win-win situation for both sides," said B N Sharma, managing director, RIICO.A $90 billion project, DMIC, envisaged by the Ministry of Commerce & Industry should be ready by 2013. The project with technical expertise from the Government of Japan is expected to transform the country's economic landscape and strengthen business bonds between India and Japan. The DMIC development will be based on the PPP model which includes a 1,515-km-long dedicated freight corridor along with 150 km long industrial corridor on both sides of the freight corridor. The project will be spread over about 4,00,000 sq km and will pass through six states. The total cost for the corridor is estimated at Rs 16,592 crore. For the project preparation, Rs 50 crore has been budgeted in 2008-09 and the government of Japan has also offered a Rs 50 crore contribution.

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Alwar Patrika

Quantum of petrol price hike surprising; but needed to curb deficit: Hero Motocorp 6:52 Country's largest two-wheeler maker Hero MotoCorp today said it will invest Rs 2,575 crore to set up two new manufacturing plants in Gujarat and Rajastan and an R&D centre by 2013-14. "We have huge investment plans in various parts of the organization. We will be setting up our fourth plant at Neemrana in Rajasthan," Hero MotoCorp managing director and chief executive officer Pawan Munjal said. RELATED STORIES • Hero MotoCorp to invest Rs2,500 crore in new plant • Munjals