WHY INVEST IN JHARKHAND?

Jharkhand has been integral to industrial growth 1907Steel Works set up at Sakchi 1910Jharia Division begins operations 1923The Tinplate Company of India is established 1925Noamundi Mines commence supply of iron ore 1927Tata Pigments is formed 1948West Bokaro collieries acquired by Tata Steel 1950Tata Motors establishes plant in Jamshedpur 1953Indian Tube Company is set up, now a part of Tata Steel 1957Uranium Corporation of India established 1958Heavy Engineering Corporation 1959 MECON Ranchi established 1961TRF Limited set up by Tata Group 1964Bokaro Steel Plant commences operations 1985Tata Sponge sets up base in Joda Tayo Rolls, Tata Growth Shop and JAMIPOL 1975Central Coal Fields formed, a miniratna company 1998Timken establishes base in India Indo Danish Tool Room established 1995Tata Power sets up thermal power plant 2003Tata Steel takes over ISWP

Regulatory framework Procedures for entry and exit of firms Industrial regulation, labour regulation, other government regulations Certainty about rules and regulations Security, law and order situation Incentives to industry Tax incentives and exemptions Investment subsidies and other incentives Availability of finance at cost-effective terms Incentives for foreign direct investment (FDI) Profitability of the industry Since its creation the state it has set in place a range of enablers for investment

Jharkhand is a leader in key industries

PARTNERING GROWTH IN THE STEEL INDUSTRY

Growth in Global Apparent Steel Use is expected to be steady Apparent steel** demand in Mn.T (yoy % growth) Source: WSA, SRO_April 2011 Effective crude steel capacity (Mn.T) in 2011 (f) NAFTA Rest of Asia China EU - 27 CIS 9% 8% China Asia, Oceania & Africa (ex-China) C & S America India 14% 13% 8% 5% 8% 11% 4% 6% 5% 7% **ASU depicted is for carbon + alloy steel The total demand will be 1.44bn mt in 2012, a growth of 6% over 2011

China and India are the centres of economic growth and Steel demand: GDP growth estimated between 8-10% in the next 3-5 years Strong Steel demand in India: 10-12% on back of robust growth in Auto and Construction India is an attractive destination for both imports and setting up of new facilities: by 2015 ~ 55 mt of capacity is expected to be added by domestic steel companies as well as the global players Belief in the potential of the steel industry in India

Steel is the backbone of the India Growth Story Indias per capita consumption is 30 kgs of steel Indias steel consumption is expected to reach 300 mtpa by 2025, it has set a production target of 110 mt by 2020 India needs one integrated steel plant every year, for next ten years to meet its demand To achieve its growth targets India will need steel

Indian steel demand is expected to grow at ~8-9% in FY12 Drivers for change Revisions in sector growth rates are based on slowing economic momentum due to inflationary pressures, high borrowing costs and global economic turmoil. As a result of expectations of lower sector growth rates and changes in other macroeconomic parameters steel demand growth for FY12 is downgraded slightly to ~8-9% % 11% Major steel consuming sectors are expected to post lower growth rates in FY12… Growth rates yoy (%) Carbon steel ASU* (Mn. T) * After JPCs revised estimates added ~ 3 MT to FY10 ASU

Socio-Economic Impact Socially Responsible Companies Better Health, Education and living standards Environment Statutory norms Competitive industry demands efficient technology Revenue and Employment 1 job in steel industry= 3 additional direct + 3 indirect jobs It is the first and fastest to provide return on investments and further value creation Steel is leading the change for mineral based industries The steel industry is expanding markets through new age applications and growth through operations in diverse geographies Steel is 100% recyclable therefore it is a sustainable industry The steel industry is expected to be a driver of economic growth in India

Manufacturing Spares (Mech / Elect / Hydraulic etc.) Steel Service Centre Slag Cement Sponge iron Rolls Pumps Tools & Tackles Mobile Equipment Foundry & Forge Lubrication oils Rubber Belts / Cables Safety appliances Stationary items Furniture Paints Power generation & distribution Manufacturing Spares (Mech / Elect / Hydraulic etc.) Steel Service Centre Slag Cement Sponge iron Rolls Pumps Tools & Tackles Mobile Equipment Foundry & Forge Lubrication oils Rubber Belts / Cables Safety appliances Stationary items Furniture Paints Power generation & distribution Service Handling agents / Couriers 3 PL Transport contracts Maintenance -contracts Hospitality Medical Retail Realty Service Handling agents / Couriers 3 PL Transport contracts Maintenance -contracts Hospitality Medical Retail Realty The steel industry is a growth multiplier given the opportunities it generates for Allied Industries

Proposed investment of around US $ 1 trillion in infrastructure in the 12th plan, half of which would come from the private sector Efforts to increase the share of manufacturing sector from 15 per cent to 25 per cent of GDP by 2020 This will lead to high demand of steel It will be a challenge to meet the targets of the 12 th Five Year Plan India's steel demand is likely to grow 10.3 per cent per annum, and will reach a level of 113 million tonnes by the terminal year ( ) of the 12th plan In a business-as-usual scenario, domestic supply of steel will significantly fall short of domestic demand The 12 th Five Year Plan has given impetus to the steel industry

Growth plans of the global steel industry for India

Key enablers for growth of the steel industry in India National Mineral Policy emphasises: The need for conservation and judicious exploitation of finite mineral resources through scientific methods of mining, beneficiation and economic utilisation Development of mineral resources by taking into account national and strategic considerations To ensure adequate supply and best use keeping in view present needs and future requirements To ensure indigenous availability of basic and strategic minerals to avoid disruption of core industrial production

Key enablers for growth of the steel industry in India National Steel Policy is expected to be released soon. The task force has brought together stakeholders from all areas The policy will focus on regulatory hurdles, taxation issues and infrastructure bottlenecks It will look into boosting capacity expansion due to soaring imports and to address issues which are hindering capacity expansion Measure for optimum utilisation of raw materials including beneficiation

Features specific to the Mining and Minerals Sector Simplify procedures and expedite granting of mining leases Provide certain relief to make mining activities easier Encourage use of modern exploration techniques to set up a resource inventory of various minerals in the State Encourage joint venture projects with State Mineral Development Corp Clear mining lease applications and project report within 60 days Encourage Foreign investment and technological collaboration by OCBs and NRIs in selected sectors including Mineral development Encourage Private Sector participation in Mining Activities Jharkhand Industrial Policys focuses on growth of mineral based industries in the state Source: Jharkhand Industrial Policy 2011

According to the steel ministry assessment report: Of the 22 MEGA steel projects planned eight are located in Jharkhand – the maximum for any state in India

Growth of the contribution of steel and steel based industries industrial value Iron and Steel accounts for more than 50% of Jharkhands industrial out put. Steel industry has grown by 24% in the last decade Auto and its ancillaries which use steel as a principal input have become the second largest contributor to industrial output. Further growth and Value Creation can take place if idle mineral resources are utilised

The investments which have led to this growth 26 mega industries, 106 large and medium industries and 18,109 micro and small industries have been set up The approximate value investments is Rs 28, crore Industries have been able to acquire about 8,000 acres of land through direct negotiation with raiyats; the State government has provided 3000 acres of land Around 17 mega industries have already come into production and several other industrial units are likely to be commissioned during the financial year Steel production in the State has increased from 8 million tonnes to over 12 million tonnes per annum during the 11 th Plan period Source: Jharkhand Industrial Policy 2011

Steel is leading the change for mineral based industries 25% of the steel produced in India is made in Jharkhand The proposed projects by Tata Steel, Bokaro Steel, Essar, etc will add 25 MTPA to steel making capacities in Jharkhand An Auto Cluster is being made operational at Jamshedpur An Automobile Vendor Park will be established under PPP or Private Mode by Mega Automobile Manufacturing Units Skill development and training in activities like driving, vehicle maintenance will receive financial support from the State Why Jharkhand is seen as an emerging steel hub?

In 1867 J.N. Tata attended a lecture by Thomas Carlyle (British writer) in Manchester. Carlyle's statement "the nation which gains control of iron, soon acquire control of gold" had a profound effect on J.N. Tata, exposing him to the idea of setting up a steel mill in India. He chose Jharkhand - we believe you should too