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Auto Engineering - Resurgent Rajasthan

AUTO & ENGINEERING

Advantage Rajasthan

Access to

of the total automobile sales in India
Approximately 40% of passenger car and motor cycle production of India is concentrated within 200 km radius in Alwar district in Rajasthan.
Rajasthan produces

almost all components that go into an automobile.
Presence of over 100 component manufacturing units

Market Access

8,380 sq km of Rajasthan falls in the National Capital Region (NCR), which is around 24.5% of the total NCR. Rajasthan shares its border with five major Indian states: Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat. Industries in Rajasthan have to their advantage, access to this enormous market.

Proximity to Automotive Cluster

Approximately 60% of passenger car production, 55% of motor cycle production and 25% of tractor production of India is concentrated in the National Capital Region (NCR) which is located within a radius of 200 km from Alwar district in Rajasthan. The zone offers access to 57% of the total automobile sales in the country.

Reserved Land Parcels

Two land parcels within NCR region at Khushkhera Extn (600 acres for 4-wheeler OEM) and Tapukara Extn (150 acres for 2 wheeler OEM, tractors & farm equipment) have been reserved especially for auto units. These are located about 80 km from New Delhi International Airport and 200 km from Jaipur.

An 1167-acre industrial area has been developed by RIICO in Neemrana, along the Delhi-Jaipur highway, especially for industrial units from Japan. Major automotive units are established in this Japanese Zone.

Labour Reforms

The state government has initiated comprehensive labour reforms. The state government relaxed the Trade Union Act, Industrial Dispute Act, Contract Labour Act as well as 1961 Apprenticeship Act to spur economic development and attract investment.

  • Key Highlights of Labour Reforms   
    • Industrial establishments employing up to 300 workers are now allowed to retrench employees without seeking the prior permission of the Government.
    • The threshold of the number of employees required for the purpose of applicability of the Factories Act has been increased from 10 to 20 (in electricity-powered factories) and from 20 to 40 (in factories without power ) thereby putting small factories in Rajasthan outside the purview of the Factories Act
    • Membership of 30% of the total workforce needs to be recorded for a union to obtain recognition, up from 15%, a move that will halt productivity losses due to industrial dispute
    • As against the existing threshold of 20 contract labour/workmen, the Contract Labour Act will be applicable only to those establishments and contractors in Rajasthan who employ 50 or more contract labour/workman in the preceding 12 months.

Skilled Manpower

To ensure abundant availability of trained human resources, Rajasthan's constant endeavour is to build as well as support the growth of a robust educational infrastructure. The technical institutes in the state have an intake capacity of over 2 lakh students. The state has been ranked 5th in terms of total number of colleges and universities in India.

Industrial Power

With firm steps to augment availability of power for industrial, commercial, domestic and agricultural consumption, Rajasthan has a power generation capacity of over 17200mw, with 3500 mw capacity under construction and an additional 34,243 mw sanctioned for the 13th Plan (2017-22). Besides, Rajasthan has signed MoUs for setting up of a cumulative generation capacity of 40000 mw in the solar sector.

Projects for Investment

ProjectsCapacity Per AnnumMin. InvestmentInr Million
Passenger Cars 0.25 million units 37,000
Tractors 30,000 units 5000
Two Wheelers (Motor Cycles) 0.60 million units 2800
Three Wheelers 25,000 units 1300
Commercial Vehicles Assembly Unit 50,000 units 21,500
Forgings (Press, Hammer & Upset Forge) 12,000 tonnes 500
Casting- Aluminium Die Casting 2500 tonnes 350
Starter Motors 0.3 million units 275
Engine Control Unit 0.18 million units 450
Transmission Gears 1.0 million pieces 200
     

Major Players


Contact Us Now

Rajasthan State Industrial Development
& Investement Corporation Ltd. (RIICO)

Udyog Bhawan, Tilak Marg,
Jaipur 302005
T: (PBX)+91 141 222 7751

Managing Director


T: +91 141 511 2308

General Manager

Tilak Marg, Jaipur 302005
T: (PBX)+91 141 222 7751