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Rajasthan
today is rapidly emerging as one of the most attractive investment
destination in India. Wide -ranging economic reforms, availability
of low cost labour, cheap and a variety of raw material and
intermediate products, a large domestic market, a mature financial
sector and political stability are some of factors for its economic
growth. The economic factors of Rajasthan are:
Agriculture
Rajasthan's economy is primarily agricultural and pastoral. Wheat and barley are
cultivated in large areas, as are pulses, sugarcane, and oilseeds.
Cotton and tobacco are cash crops. Rajasthan is amomg the largest producer of edible oils
in India and the second largest producer of oilseeds. Rajasthan is also the
biggest wool-producing state in India. There are mainly two crop seasons. The
main source of irrigation is wells and tanks. The Indira Gandhi Canal irrigates
north western Rajasthan.
Industries
Textiles: Rajasthan state is the second largest producer of polyster fibre in
India. Bhilwara district produces more cloth than Bhiwandi in Maharashtra.
Minerals: Rajasthan is the second largest mineral reserves state in
the country. Rajasthan produces 42 varieties of major minerals and
23 varieties of minor minerals. It is the second producer of glass
and ceramic materials and leading producer of felspar. It is the
second largest producer of clay and silica. The state is the largest producer of marbles and sandstone, the second largest of
cement. It has rich salt deposits at Sambhar and copper mines at Khetri and
Dariba. The white marble is mined at Makrana near Jodhpur.
Rajasthan is the mineral capital of India and produces Wollastonite,
Jasper, Zinc ores, Fluorite, Gypsum, Marble, Asbestos, Soapstone, Lead concentrate,
Phosphate rock, Ball clay, Calcite, Sandstone, Flaggy limestone, Feldspar,
etc. It producing 90% of the country's copper and zinc. The
largest copper smelter in the country are based in the state.
Tourism
Endowed with natural beauty and a great history, tourism is
flourishing in Rajasthan. The forts and places, the magestic Aravali
ranges, the idyllic lakes and the wild forests weave a magic of
their own.The palaces of Jaipur, lakes of Udaipur and desert forts of Jaisalmer
are among the most preferred destination of many tourists, Indian and foreign.
Tourism accounts for eight percent of the state's domestic product.
This charming land which attracts almost6,00,000 tourists annually
is full of opportunities for the tourism industry. Many old and
neglected palaces and forts have been converted into heritage hotels. Tourism
has increased employment in the hospitality sector.
Handicrafts:
A spin-off of tourism has been the growth of the handicrafts industry.
Economic infrastructure of the state.
Rajasthan offers 277 industrial areas that provide a ready to use
base with supportive infrastructure facilities. The Rajasthan State
Industrial Development and Investment Corporation Limited (RICO) has
played a major role in giving an impetus to industrialization in the
state as well as developing industrial infrastructure. The
impressive scorecard of developing about 300 industrial areas,
financial assistance to about 900 projects, development of 35,000
acres land for industrial purpose, sanction of over Rs. 15,000
million to industrial, commercial, educational and infrastructure
projects, catalysed investment of around Rs. 50,000 million in
Rajasthan through term lending and employment opportunities for
about 90,000 persons, speaks of achievements made.
RIICO along with the State Government has developed several
Growth Centers as Siohi, Jhalawar, Sikar (Palsana), Bikaner (Kahara
and Karnal), Dholpur, Naguar and Bhilwara. The main Industrial
areas developed are: Bhiwandi, Industrial Area - Neemrana,
Khushkhera, Chopanki, Sarekhurd, Sotanala, Shahjahanpur, Behror.
Theme Parks by RIICO are:
1. Special Economic Zones in Jaipur (Sitapura) and Jodhpur (Borananda)
2. Export Promotion Industrial Parks in Jaipur, Jodhpur and
Alwar.
3. Electronic Hardware Technology Park in Jaipur
4. Leather Complex in Jaipur.
5. Software Technology Park in Jaipur
6. Agro food Parks in Kota, Jodhpur and Sri Ganganagar
7. Bio- Technology Parks in Jaipur, Jodhpur and Alwar.
Oil and
Natural gas in Rajasthan
Rajasthan dreams of oil boom
as its success in oil exploration and subsequent discoveries in
natural gas. ONGC had started exploration for oil and gas in western Rajasthan in 1954 and Oil India Limited in 1983.
A number of companies like Cairn Energy, ONGC, Oil India Limited, Essar Oil, Polish Oil and Gas Company, and Phoenix Overseas, are busy exploring in
Rajasthan. Cairn had in January 2004, announced the discovery of 450 to 1,100 million barrels of good quality light crude oil at the well, N-B-1, in block
RJ-ON-90/1 in northern Rajasthan. Under the production sharing contract
(PSC), the government has to purchase crude oil from the date of first commercial production, which has been indicated as mid 2007. ONGC holds 30% equity in this block with Cairn Energy as the operator. Oil and Natural Gas Corporation (ONGC), Indian Oil
Corporation (IOC) and Hindustan Petroleum Corporation Ltd
(HPCL) are all in the race to set up a 4-6 million tonne refinery estimated to cost between Rs 4,000-5,000 crore. The life span of the Rajasthan oil block is estimated to be around 23 years and the production which will commence from mid 2007 will peak in the beginning of 2008 at around 80,000-100,000 barrels of oil per day.
Cairn estimated that three main northern fields - Mangala, Bhagyam and Aishwariya - had risen to 800 million barrels of oil.
The company has till date has made 18 discoveries: Guda, Raageshwari gas, Raageshwari oil, Kameshwari oil, Saraswati oil, GS-V-1, N-R-4, Vandana,
Vijaya, N-E-1, Aishwariya, Mangala, Bhagyam South-I, NC West Oil and gas, N-I, Shakti and Bhagyam.
The initial development investment for Mangala and Raageshwari gas by the joint venture (Cairn - 70 per cent, Oil and Natural Gas Corp - 30 per cent) to first production is estimated to be in the region of $800
million. Oil and Natural Gas Corporation (ONGC), with 30 per cent share in British firm Cairn Energy's commercial oil and gas discovery in
Rajasthan, is planning to set up a 3-5 million tonne refinery.
In Rajasthan, over 2,900 million cubic meter gas reserves have been found by ONGC, and 9,200 million cubic metre reserves by Oil India so far.
In Jaipur, Rajasthan's Minister of Mines and Petroleum Laxmi Narayan Dave said it was the first time that such huge reserves of
natural gas were found in the state. "We are emboldened by the discovery of the huge and high quality gas reserves in Jaisalmer area," he said.
The economic growth of Rajasthan is definite to rise due to its success in oil exploration and subsequent
discoveries in natural gas.
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