Ladies and Gentlemen,
First of all, I would like to express my gratitude to all of you for providing me an opportunity to address you.
It has become imperative to inform investors, having interest in a particular State, about the potentials prevailing there, so that the investors should know what type of facilities, security, cooperation and resources they could get to start their venture. The investors have full right to know about such facilities.
It is unfortunate that there are some misconceptions among the people regarding Uttar Pradesh. Actually, Uttar Pradesh is passing through an era of silent but actual revolution without any big propaganda. So far many people do not know about achievements Uttar Pradesh has made in Information Technology and is moving ahead rather speedily.
It is matter of pride for us that a maximum of Rs.3,500 crore worth software is being exported from Uttar Pradesh after Karnataka in the country. The pace of tele-communication services is also increasing at about 7 per cent per year, while national average of increase is only four per cent. The index of infrastructure development (IID) of Uttar Pradesh is more than 104 per cent as compared to the national average of 100 per cent.
Undoubtedly, today Uttar Pradesh is the State of unlimited possibilities. As far as human resources are concerned, Uttar Pradesh has a population more than the population of seventh largest country of the would. The increasing needs of this population, average per capita income and changing life-style are providing unlimited opportunities for the world of industries.
Uttar Pradesh is the largest market of the country. And, as such it has become an important destination for industrialists in the country and abroad. Our population is not only consumer of all types of industrial products, but also has capabilities to go for production of a variety of goods.
Uttar Pradesh having different national and international institutions is preparing trained and educated youth every year equivalent to the population of several States. On the basis of extraordinary efficiency of human resources, the State is ahead in food processing, textiles, leather, detergent, vehicles, electronics, Information Technology and chemicals industries.
As far as maximum investment of capital is concern, U.P. stood successively at third place after Maharashtra and Gujarat in the country since 1991. It is a matter of satisfaction that we are receiving attractive proposals of investment. Implementation of all these proposals is being done on a priority basis. You will be glad to know that implementation of 51 per cent out of the proposals received during last one decade has been ensured, which is maximum after Gujarat and Rajasthan, in the country.
However, I am not satisfied with these achievements. Strategy has been chalked out for a long term economic and industrial development in the State by ensuring congenial atmosphere, high class infrastructure facilities, simplified tax system, cooperative and investment-oriented system for investors and industrialists.
Impressed by our road construction policy, several private investors have taken upon themselves the responsibility of managing important projects. One such project is Noida Toll Bridge the cost of which is 100 million U.S. dollars. This ambitious project is likely to be completed in next 4 to 5 months. Road Development Fund has been constituted for development of roads. Based on feasibility report, such projects are selected, as are financially sound. About 200 feasibility reports are ready at present, which have been prepared by the prominent experts of the private sector.
Several circuits like Bundelkhand, Brij, Avadh have been prepared in the tourism sector in the State, which has immense possibilities of private capital investment. The Government of Japan and entrepreneurs are ensuring their participation in the Buddhist circuit. I invite private capital investors for providing facilities to the tourists. Perhaps you would be aware that every third tourist entering the country come to Uttar Pradesh, which is an indication that how much possibilities of investment the State has in the tourism sector. Your will get several incentives for investing in the tourism sector. We have initiated 'Paryatan Mitra' scheme for the NRI investors, which has become very popular.
You will be glad to know that with a view to improving infrastructure facilities and to attract private capital investment, a infrastructure map has been prepared for developing 7 industrial corridors in the state. This scheme has yielded encouraging results in industrial development of the State. We are first in India for creating Infrastructure Initiative Fund. Under it, different schemes have been identified and developed. These schemes are attracting private capital investment.
We have created Infrastructure Development Fund of Rs.100 crore for contributing seed capital to selected projects. I invite you to utilise these facilities being made available to you.
We have launched drive for economic reforms in the State. Fiscal deficit has been reduced from 7.5 per cent to 7 per cent. I hope that by the year 2003-2004, fiscal deficit will be brought down to 4 per cent. This deficit is considered to be reasonable from economic point of view. Decision has been taken to abolish subsidy and it will be only 0.7 per cent of GSDP by the year 2003-2004. V.A.T. system will be implemented in Uttar Pradesh completely for improvement of taxation by the year 2003-2004. The number of tax rates has been reduced from 11 to 5. This process of economic reform will continue in future also.
Similarly to reduce financial burden, VRS has been implemented in State Textile Corporation headquarters. The U.P. Instruments Ltd. has been closed down and its assets have been sold out.
We have initiated wide-ranging administrative reforms for providing various facilities to the investors. The permission of the District Magistrate has now been made mandatory for conducting inspection at any industrial unit. This has put a check on whimsical inspection of the units and the industrialists are now feeling relieved. UP is the first state in the country which had intoduced such a step. Likewise, single table system has also been inroduced. Under it all the sanctions are being provided within 60 days to the industries. This system has been introduced with an objective of saving the time of businessmen.
We are of the opinion that time is money and, therefore, it is our effort to save the time of the entrepreneurs. This is my firm belief that it is the responsibility of the Government to provide those basic facilities, which would attract the investors. As I have mentioned earlier, several such factors have been developmed in U.P. Therefore, I want to request you to make U.P. your diestination as it is a place of immense possibilities.
This State has always welcomed people and I want to assure you that this tradition would go on.
I beleieve that you people want to work in such an atmosphere, where the duties and rights of everyone have been well-defined. U.P. has announced well-defined policies regarding almost all the economic activities. The cooperation of the representatives of the industries has been sought for the formulation, implementation, monitoring and evaluation of these policies. This gives us an opportunity to understand the expectations and hopes of the industries and work accordingly. I would like to assure the investors and entrepreneurs that they would not be disappointed at any level.
Uttar Pradesh has also made notable efforts in the field of infrastructure. Electricity is the axsis of all-rould development. The State Electricity Board, with an objective of improving the power system of the State, has been divided into three separate Corporations. They are U.P. Vidyut Utpadan Nigam, U.P. Power Corporation (which is looking after the distribution and transmission works) and Uttar Pradesh Hydro-Power Corporation. The jurisdiction and responsibilities of these Corporations have also been fixed. With this, the privatisation option of these Corporations has also been opened.
The State Government has also constituted U.P. Electricity Regulatory Commission, which is working in a constructive manner. This is also fixing the power tariff, by keeping an eye on the financial resources. Recently, the power rates fixed by the Commission have been implemented by the State Government.
I would like to inform you that our power distribution system would be divided into two companies by the month of January. Each distribution company's responsibility would be fixed separately. After that, we would undertake privatisation of power distribution system in a phased manner.
A new law, to check the power pilferage, would also be introduced in the State very soon. Under this the responsibility of consumer as well as the concerning officers/employees would also be fixed. Our objective is to check the distribution and transmission line-losses according to the universal standard. The main objective of our power reform programmes is to ensure uninterrupted power supply to all our consumers. It is definitely a difficult and time-consuming task and it would yield results in next 3-4 years. But the State Government would take time-bound and constructive action in this direction continuously.
We have also adopted a liberal policy for the captive power generation sector, so that the generation of power could be increased. With this objective, we have exempted the power generating units from the power charges. Other private sector projects were also under consideration. We are also going to take a decision to start the Anpara 'C' power project very soon.
You might be aware that Uttar Pradesh is a leading State of the country as far as the Information Technology Sector is concerned. Uttar Pradesh has alsoannounced its IT Policy to ensure its all-round development and entrepreneurs have been provided several attractive facilities under it. It is may firm belief that IT can not develop until and unless requisite quantity of bandwidths was not available. With this objective we have formulated a very liberal policy of creating an optic fibre network thoughout the State. The investors have been provided 'Right of Way' under it and Non-Exclusive Law has also been introduced. Uttar Pradesh is the First State of the country to take such a decision. We have also adopted the policy of single-table-system for providing all types of clearances at a single point. Inspired and encouraged by our policies, the Reliance Company is about to being the optical fire networking in the State. Besides, few other companies have also expressed their willingness to participate in this work.
Uttar Pradesh has tWo IT gateways, one is at NOIDA which belongs to STPI and the other is at IIT, Kanpur shich belongs to VSNL. I can assure you that there would be no shortage of bandwidths all over the State.
The IT and IT-based services have been exempted from the pollution Control and rules and regulations of Labour Department. The IT industry has been declared a non-polluting industry in the State.
The IT Industry holds an important place in our state, and we have placed it under the continuous process industry category, so that it could be exempted from power supply restrictions, Likewise, to encourage the employment opportunities for women, the working hours have also been changed liberally.
We have initiated action for setting up Software Technology Parks at Agra, Varanasi and Kanpur also, in addition to one set up at NOIDA. It is our main objective to ensure the benefits of IT for the common man. We have also formulated a detailed scheme for promoting IT in the field of education. This would also ensure availability of trained and efficient IT talent in the State.
The above details must have made it clear to your that UP will forge ahead on the path of Information Technology and it would achieve first place in the co7untry as far as IT sector is concerned. We are not very sure about our place in the country at the moment. If Uttar Pradesh could get your cooperation and support, it would emerge as a top contender in the field of IT, at the international-level very soon.