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1. EXPLOITATION OF RUBY DEPOSITS OF AZAD KASHMIR Location The Ruby deposits of Azad Jammu & Kashmir are found at Nangimali area of Upper Neelum Valley. The area falls in Survey of Pakistan Topo sheet No.43- J/5. Accessibility Nangimali is about 25 km from Kel. The Kel is about 160 Kilometers north east of Muzaffarabad. Kel is linked with Muzaffarabad by partially metal road open for about 8/9 months, whereas onwards by a fair weather road open 5 to 6 months. Reserve Potential 40 million grams of ruby potential has been assessed in Nangimali area. Recently ruby has been discovered in the vicinity area of Chitta Katha and on the basis of preliminary exploration during 2005 and 2006 a similar deposit to Nangimali is expected, with very high ( about 40 times than Nangimali) per cubic meter recovery of ruby.

Market Studies With the technical and financial assistance of UNDP, this stone have been introduced in the World market as Kashmir Ruby by participating in the international gem shows held at Tucson, USA, and in the gem markets of Thailand, Switzerland and UK. These promotional activities established Kashmir Ruby as highly desirable unique gemstone of the world.

Feasibility Comprehensive Feasibility Study for Commercial exploitation of Nangimali Ruby Deposits has been prepared in 2003. The Study envisages annual production of 300 kgs production after 2 years mine development. Total investment is estimated to be Rs. 112 million. 2. ESTABLISHMENT OF GRAPHITE PROCESSING PLANT Location The graphite deposits are found in Bagnaunwali Seri, Tarli Domel and Mohriwali areas of Upper Neelum Valley. The area falls in Survey of Pakistan Toposheet No.43-J/5 & I / 8. Accessibility Bagnaunwali Seri, Tarli Domel and Mohriwali areas are about 6 km, 13 km and 35 km from Kel respectively. The Kel is about 160 kilometers north east of Muzaffarabad. Kel is linked with Muzaffarabad by partially metalled road open for about 8/9 months, whereas onwards by a fair weather road open 5 to 7 months. Reserve Potential A total of one million ton proved reserves of graphite are present at all threelocalities i.e. Bagnaunwali Seri (0.3 m ton), Tarli Domel (0.6 m ton) and Mohriwali (0.1 m tone). The graphite at first two localities is foundry grade whereas last one is crucible grade. Feasibility A comprehensive feasibility study covering mining, processing & marketing was prepared in 1989. In the said feasibility study total investment required was Rs. 67.00 millions which needs to be updated. 3 ESTABLISHMENT OF CEMENT MANUFACTURING PLANT AROUND MUZAFFARABAD Location The limestone / Shales and Gypsum (Cementious material) bearing areas are located within 10 km2 radius around Muzaffarabad town. The area falls in Survey of Pakistan Toposheet No.43-F/7. Accessibility The limestone and shale deposits of Batmang area are located on all weather metalled (Neelum valley) road at a distance of about 4 km North of Muzaffarabad..

The deposits of gypsum are located at Sherwan, Shawai, Balok Bhana and Thangar area about 2 to 4 km Northwest of Muzaffarabad and are easily accessible with all weather roads. Reserve Potential About 100 million tones reserves of limestone / shales and four million tones of gypsum are present. Feasibility Preliminary feasibility study covering reserve potential and suitability of material for cement manufacture is available. Different studies including costs, marketing, size and location of plant etc. are to be done. Tentative investment required for establishing a cement plant with 2000 ton / day capacity is Rs. 3.00 billion. 4. ESTABLISHMENT OF BENTONITE PROCESSING PLANT Location The Bentonite deposit of Sadiqabad-Kathar is located near Dudial, District Mirpur and fall in Survey of Pakistan Topographic Sheet No.43-G/11. Accessibility The Mirpur town is the District headquarter and lies about 120 kms from Rawalpindi and connected through the grand truck road via Dina and Mangla. The Dudial town can be approached at a distance of 65 kms from Mirpur along MirpurChakswari road and 85 kms from Rawalpindi via Kalar Sayyadan-Dan Gali road. Reserve Potential Four million tones proved reserves of bentonite are found in Dudial area. Market Studies Presently activated fullers earth is being produced in the country and is also imported from West Germany, China, USA, U.K, Malaysia and Indonesia to meet the shortfall in demand. Feasibility A Comprehensive Feasibility Study for Commercial exploitation of Dudial bentonite and establishment of Fullers earth plant is available. To mine and process 25 tonnes of bentonite per day Rs 93.00 millions will be required as per estimates prepared in 2006.

5. QUARRY DEVELOPMENT & ESTABLISHMENT OF GRANITE / MARBLE CUTTING, POLISHING PLANTS IN NEELUM AND MUZAFFARABAD DISTRICTS Location and Accessibility The Marble & Granitic terrain lies towards NE of Muzaffarabad town. The area falls in survey of Pakistan toposheet Nos 43 / F 10,14,15 & 43 / J1 &9.The area can be approached through Neelum valley road. Upper reaches of major streams passing through the granitic terrain are accessible by fair weather truckable roads. Khawaja Seri Area Khawaja Seri is located at about 150 kilometers North east of Muzaffarabad on Kel- Neelum valley road. The dolerite (black coloured) deposit is about 1 to 1.5 kilometers off the main road. In this area total of three dolerite bodies of different sizes have been located. They are intermittently exposed at different topographic

levels indicating them as a part of the same mass underneath. The tentative calculated reserves are about 100 million tons on the basis of exposed length, thickness and workable depth. Kensi Area Kensi is located at 95 kilometers north east of Muzaffarabad. The first 70 kilometers are on main Neelum valley road and the rest 25 kilometers on Kundalshahi Jagran road. The quartzite is silver grey coloured and reserves are more than 150 million tons. Keran Granite Keran is located at about 90 kilometers from Muzaffarabad. The granite deposits lie on main Neelum valley road. The granite is grey coloured having extensive reserves. The rock is less jointed and the size of the block extracted for cutting and

polishing purposes is exceptionally of good size and grade. The tentative calculated reserves are about 289 million tons on the basis of exposed length, thickness and workable depth.

Chaijwa Nala The Chaijwa village is located at about 65 kilometers north east of Muzaffarabad. The first 60 kilometers (up to Jura) are on main Neelum valley road and the rest 5 kilometers on fair weather 4X 4 truckable road. The dolerite deposit is black in colour with tentative reserves of one million ton Chugian Nala Chugian is located about at about 50 kilometers north east of Muzaffarabad. The first 30 kilometers are on main Neelum valley road and the rest 20 kilometers on fair weather 4 X 4 truck able road. This is very promising area having several dolerite (jet black) and light whitish grey granite deposits. A total of eight dolerite bodies of different sizes have been marked between Harla to Trakana baihks in Chugian Nala and onwards to eastern slopes of Sarsangar gali. They are intermittently exposed in a 3 km long belt at different topographic levels indicating them as a part of the same mass underneath. The lowest level so far located is at 2500m ASL in Pathra baihk that passes up to Sarsangar Gali at 3130m ASL. The numerous occurrences and their lateral extension indicate huge reserves. The grey granite found in the area is fine grained, less jointed and large size blocks can be extracted for cutting & polishing. This has been indicated a potential target. The tentative calculated reserves are about 157 million tons on the basis of exposed length, thickness and workable depth. Market Studies About 60 tons of granite samples (grey & black) from various deposits were cut and polished. The material is unique and highly desirable in the local & international markets. Feasibility Comprehensive geological studies are underway and on its completion a mining feasibility study for commercial exploitation of these deposits shall be prepared. Tentatively Rs. 250 to 300 million will be required for quarry development and cutting / polishing plants.
AZAD KASHMIR MINRAL & INDUSTRIAL DEVELOPMENT CORPORATION Near Abbass Institute of Medical Science Ambor, P.O. Box #8, Muzaffarabad, Azad Kashmir PH: 05822-921577, 921578, 921580, Fax: 05822-921576


Tourism has established as an itself

important in the


world. It has proved its effectiveness in economic uplift as well as in introducing historical and traditional heritages. Besides other benefits, Tourism is a growth industry and grows faster than most other exports oriented industries. Tourism industry may promote a better image of the country and thereby enable it to achieve other objectives. Tourism can be an instrument of a process of transferring wealth from richer parts to the poorer parts of the country and securing a more equitable distribution of wealth. In Azad Jammu & Kashmir potential-wise, after hydro power, tourism can be described as the other main resource. Tourism in Azad Jammu & Kashmir: Azad Kashmir is bestowed by nature with exquisite natural beauty and has great potential for development of tourism. The picturesque beauty of its valleys, dense forests, winding rivers, turbulent foaming streams, majestic towering mountains, bracing climate, historical & cultural heritage, holistic shrines & festivals and diversity of flora and fauna all go together to make it an excellent tourist resort.. The area is full with variety of landscapes. Hiking and tracking sites, trout fishing in the frozen waters of the Neelum River and the remains of the Buddhist civilization in the Sharda Valley are other areas of tourist attraction. The beautiful wood work, the famous Kashmiri handicrafts,

traditional Kashmiri foods and above all a clean and pristine environment presents other areas of delight for the tourists on this heaven on earth. The custom rich and traditional society of AJK is also a subject of anthropological value. The State of Azad Jammu & Kashmir contributes a distinctive cultural entity developed by its people, which is profoundly different from the rest of the SubContinent. Its mountain terrain and wide valleys decanted harsh terms on the development of its culture. This is why the people of Azad Jammu & Kashmir have developed into a persistent hard-working, non aggressive race which leads a simple & frugal life. Their dances, music, dress, traditions, jewelry, handicrafts and performing arts all are windows to their character. A- HELI-TOURISM: The Heli-Tourism product is a new initiative world-wide, which is the largest service provider, to enable tourists to travel from one destination to another with the double benefit of cutting down on travel time while enjoying a birds eye-view of the unique beauty of nature. For those who can pay, the joys of chopper rides might be a lot more accessible than the vicarious pleasure of seeing a screen. Moreover, the vertical lift technology of helicopters has far more utilitarian aspects to its credit than only being an effective mode of transport. Besides connecting the remotest places to the centre, helicopters can perform SAR (Search And Rescue), EMS (Emergency Medical Services), Law Enforcement, Power Line Survey, Fire Fighting, ENG (Eloctronic News Gathering) missions etc. In Azad Jammu & Kashmir, heli tourism services to popular destinations, could tag convenience with a sense of adventure as well as pack in the utility of quick travel. The heli service may be expensive but is likely to grow in popularity. There are keen adventure enthusiasts would like to travel to inaccessable mountain peaks for trekking, skiing, paragliding and bunjee jumping etc.

Besides, heli service could also be used for other official purposes as well for SAR (Search And Rescue), EMS (Emergency Medical Services), Law Enforcement, Power Line Survey, Fire Fighting, ENG (Eloctronic News Gathering) missions etc. especially proven services rendered by the helicopter during the disastrous earthquake of 2005.

The Govt. of AJK taking all these aspects into consideration, decided in principle to setup a heli-service for tourist operations as well as multiple purposes. In this regard, AJK Tourism Department intends to establish HeliTourism in AJK through PublicPrivate Partnership, which is planned for Improvement of accessibility in AJK and regions of potential tourist areas, which are not connected by roads. Promoting arrivals to the destinations of interest by creating hub & spoke operations, giving impetus to Heli-Tourism and helicopter services to areas not serviceable by fixed wing aircraft is the main theme of the project. In this regard, Bids/ Offers are invited from reputed organizations for the long term Heli-Tourism operations. Specifications of the Helicopters and terms & conditions can be obtained from office of the Director General AJK Tourism & Archaeology, Muzaffarabad. BChairlifts/ Cable Cars: Chairlifts & Cable Cars are considered to be very popular mode of recreation. Azad Jammu & Kashmir has many beautiful

places which due to their locations, altitude varying from 5000 Ft to 8500 Ft above sea level, enchanting surroundings and aesthetic atmosphere have great potential for installation of Chairlifts & Cable Cars etc. Installation of such devices will not only provide linkage between adjacent tourist spots but also create additional recreational facilities to the locals and visitors besides enhancing the tourist potential and economic

development of the areas. Survey & Feasibility Study has been carried out through a reputed expert Firm. The Consultant Firm has recommended that installation of chairlift/ cable cars in between Saran-Pirchinassi is a most feasible project with the following submissions:

SITE POTENTIAL Saran Pir Chinassi Project is Located in Muzaffarabad District, East of Muzaffarabad City Some 27 Kilometers away

approachable by a Black Top Road. Saran Has An Altitude Of 2,335 Meters And Already Has A Tourist Lodge. Pir Chinassi has

an altitude of 2,924 meters and tomb pir shah hussain bukhari is situated at the top of Pir Chinassi peak. The proximity to the capital city, natural beauty of the area and the tomb of Shah Hussain Bukhari make this site the premier location for the installation of cable car system. SYSTEM TECHNICAL DETAILS SYSTEM 8 MGD (8 PERSON MONO-CABLE DETACHABLE GONDOLA) CAPACITY NUMBER OF PARS/CABIN SPEED LOCATION OF DRIVE LOCATION OF RETURN LENGTH HEIGHT DIFFERENCE NUMBER OF CABINS TRIP TIME 1000 PERSONS \ HOUR 8 PERS 5 METERS \ SECOND STATION I (Saran Area) STATION 2 (Pirchinassi Top) 2.0 KM 500- 800 M 19 NOS 15 - 20 MINUTES

CAPITAL COST ESTIMATES The cost is subject to changes in the cost of equipment, Rupee Euro exchange rate and general inflation and should be taken only as a notional figure.

SUMMARY OF CAPITAL COST ESTIMATION SUMMARY OF CAPITAL COST ESTIMATION Item Cost of Ropeway System (Euro 6.0 million @ Rs.115) Taxes @ 30% Freight (Karachi - Saran/ Pir Chinassi Ins. @ 2% Construction (Pylons + Stations) Total = 1000.00 207.00 3.00 18,00 82.00 Rs. Millions) 690.00



The State of Azad Jammu & Kashmir by virtue of its topography, meteorology and hydrology is blessed with abundant hydropower potential. A comprehensive planning of the hydropower resources of the State has been carried out by WAPDA in collaboration with international agencies for carrying out the comprehensive planning of available hydropower resources with the following objectives: To assess the total hydropower potential of the rivers/streams available to meet the national power demand and the local demand in isolated system. To rank the identified projects for development in order of priority both for national and local power needs. The study area comprised of a part of Jhelum river basin, upstream of Mangla reservoir, which lies within the territory of Azad Jammu & Kashmir The study conducted preliminary investigations, identified potential sites and gave recommendations for further detailed studies on sites ranked to be most viable. As a result of these investigations a number of sites have been identified, that offers attractive prospects. According to preliminary estimates, potential of about 7000 MW has been identified in the three major river catchments and their tributaries in Azad Jammu & Kashmir. Important features of these project sites are:

Early rising characteristics during lean periods when output from other hydropower stations are low. Run-off-river schemes that dispense with large storage reservoirs causing environmental imbalances. A favorable topography that supports high head hydropower projects that utilized simple technology. High annual plant that insures reliable supply for most part of the year. Project locations in close proximity to urban load centers.

AZAD JAMMU & KASHMIR HYDRO ELECTRIC BOARD The Govt. of AJK has assigned top priority to the exploitation implementation and development of hydropower projects in the territory and .has constituted Hydro Electric Board for the development of hydel potential in AJK. Public sector projects are implemented by Managing Director Hydro Electric Board, whereas; Private sector projects are coordinated/processed by Director General Private Power Cell under the Administrative Control of Secretary Electricity/HEB/PPC of Govt. of AK.

In 1989, the Govt. of AJK established Hydro Electric Board to plan and to undertake development of identified hydro potential. It has so far completed 07 projects having total installed capacity of 37.6 MW. Major advantages in exploiting hydropower potential of AJK are: Convenience of interconnection with major high voltage grid network of WAPDA. Low cost of transmission/ dispatch. Low construction cost of power station. Availability of reliable and credible data on Topography, Hydrology, Geology, Seismology, and power systems. Availability of construction material and skilled/ unskilled labor. Risk free environment. Peaceful, law abiding populace with no ethnic or law/ order problems.

At present, total demand of electricity of AJK is about 400 MW, which would increase upto 700 MW 2015. The following projects are ready for investment.



CAPACITY (MW) 40 49 35 48 12 10 194

1 2 3 4 5 6

ESTIMATED COST (MUS$) 54.414 76.355 66.929 91.76 20.553 22.104 332.115

The plan of the following Hydro Power stations has been approved by the planning commission of Pakistan. Project Gulpur JagranJI Jhing Kotli Chakothi Total Capacity MW 60.00 43.5 7.5 100 131 342 Estimated Cost (in Million) Rs. 6000.00 Rs. 4600.00 Rs. 1800.00 Rs. 9500.00 Rs. 11500.00 Rs. 31600.00

THE POWER POLICY 2002 PROVIDES THE FOLLOWING INCENTIVES FOR INVESTORS IN PRIVATE SECTOR;1. FINANCIAL REGIME a) Permission for power generation companies to issue registered bonds. b) Permission to issue shares at discounted prices to enable venture capitalists to be provided higher rates of return proportionate to the risk. c) Permission for foreign, bank to underwrite the issue of shares and bonds by the private power companies to the extant allowed under the laws of Pakistan.

d) Non-residents are allowed to purchase securities issued by Pakistani companies without the State Bank of Pakistan's permissions and subject to the prescribed rules and regulations. e) Abolition- of 5% limit on investment of equity in associated undertakings. f) Independent rating agencies are operating in Pakistan to facilitate investors in making informed division about the risk and profitability of the project company's Bonds/TFCs.

2. a. b. c.

FISCAL REGIME. Customs duty at the rate of 5% on the import of plant and equipment not manufactured locally. No levy of sales tax on such plant, machinery and equipment, as the same will be used in production of taxable electricity. Exemption is already available from income tax including turnover rate tax and withholding tax on imports; provided that no exemption of income tax on oil-fired power plants. d. Repatriation of equity alongwith dividends is freely allowed, subject to the prescribed rules and regulations. e. Parties may raise local and foreign finance, in accordance with regulations applicable to industry in general. GOP approval may be required in accordance with such regulations. f. Maximum indigenization shall be promoted in accordance with GOP policy. PRIVATE SECTOR PARTICIPATION. In view of the financial constraints, it has been well realized that private sector


can play an effective role in the development of hydropower projects in AJK. A policy framework of the Government of Pakistan, which provides guidelines for participation of private sector in the development of hydropower projects, has also been adopted in AJK, HEB/Private Power Cell encourage response from the investors and Letters of Intent (LOI)/Letters of Support (LOS) for these projects to investors to promote development in this sector. Foreign private investment would be a break through in the development of hydel sector in AJK and would also lead to social-economic uplift of the region.


POTENTIAL HYDRO POWER PROJECTS FOR INVESTMENT S.No NAME OF PROJECTS CAPACITY (MW) 40 49 35 48 12 10 194 ESTIMATED COST (MUS$) 54.414 76.355 66.929 91.76 20.553 22.104 332.115

1 2 3 4 5 6


TECHNICAL & FINANCIAL PARAMETERS 40 MW DOWARIAN HPP 1. Name of Project Dowarian Hydro Power Project 2. Location 3. Capacity 4. Gross Head 5. Design discharge 6. Mean annual flow 7. No. of units 9. Plant factor 10. Generation Voltage 11. Project Investment Cost 12. Project Economical IRR 13. Project financial IRR 14. Unit Cost 15. Status Located on Dowarian nallah (District Neelum) about 97Km from Muzaffarabad 40 MW 510m 9.6 m3/s 5.97 m3/s 04 (Pelton turbines) 48.77 % 11 KV 54.414 (M.US$) 39.74 % 18.91 % 4.484 (Rs./KWh) Detailed Feasibility Study (Available)

8. Annual Energy generated 170.83GWh


TECHNICAL & FINANCIAL PARAMETERS 49 MW LUAT HPP 1. Name of Project 2. Location 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Capacity Gross Head Design discharge Mean annual flow No. of units Annual Energy generated Plant factor Generation Voltage Project Investment Cost Project Economical IRR Project financial IRR Unit Cost Luat Hydro Power Project On the right bank of Chutiari Nallah (District Neelum) about 95Km from Muzaffarabad 49 MW 618m 9.6m3/s 6.90m3/s 04 (Pelton turbines) 214.13GWh 49.9% 11KV 76.355 (M.US$) 34.68% 17.01% 5.107 (Rs./KWh) Detailed Feasibility Study (Available) TECHNICAL & FINANCIAL PARAMETERS 35 MW NAGDAR HPP 1. Name of Project 2. Location 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Capacity Gross Head Design discharge Mean annual flow No. of units Annual Energy generated Plant factor Generation Voltage Project Investment Cost Project Economical IRR Project financial IRR Unit Cost Status Nagdar Hydro Power Project On the right bank of Nagdar Nullah about 92 Km from Muzaffarabad 35 MW 470 m 09 m3/s 5.44 m3/s 04 (Pelton turbines) 146.05GWh 47.64 % 11 KV 66.929 (M.US$) 27.78 % 14.30 % 6.496(Rs./KWh) Detailed Feasibility Study (Available)

15. Status


TECHNICAL & FINANCIAL PARAMETERS 48 MW SHOUNTER HPP 1. Name of Project 2. Location 3. Capacity 4. Gross Head 5. Design discharge 6. Mean annual flow 7. No. of units 9. Plant factor 10. Generation Voltage 11. Project Investment Cost 12. Project Economical IRR 13. Project financial IRR 14. Unit Cost 15. Status Shounter Hydro Power Project Proposed on Baral river 48 MW 132 m 50 m3/s 33.03 m3/s 04 (Francis turbines) 48.75 % 11 KV 91.760 (M.US$) 27.56 % 14.39 % 5.951(Rs./KWh) Detailed Feasibility Study (Available) TECHNICAL & FINANCIAL PARAMETERS 12 MW JANAWAHI HPP 1. Name of Project 2. Location 3. Capacity 4. Gross Head 5. Design discharge 6. Mean annual flow 7. No. of units 9. Plant factor 10. Generation Voltage 11. Project Investment Cost 13. Project financial IRR 14. Unit Cost Janawahi Hydro Power Project Proposed on Baral river 12 MW 400 m 3.60 m3/s 3.29 m3/s 03 (Pelton turbines) 49.9 % 11 KV 20.553 (M.US$) 13.42 % 7.079 (Rs./KWh)

8. Annual Energy generated 223.85GWh

8. Annual Energy generated 51.73 GWh

12. Project Economical IRR 21.00 %

15. Status Detailed Feasibility Study (Available)

TECHNICAL & FINANCIAL PARAMETERS 10 MW TAOBUT HPP 1. Name of Project Taobut Hydro Power Project 2. Location 3. Capacity 4. Gross Head 5. Design discharge 6. Mean annual flow 7. No. of units 8. Annual Energy generated 9. Plant factor 10. Generation Voltage 11. Project Investment Cost 12. Project Economical IRR 13. Project financial IRR 14. Unit Cost 15. Status Proposed on Gagai river 10 MW 66.0 m 20.0 m3/s 12.45 m3/s 04 (Francis turbines) 47.68 GWh 52.8 % 11 KV 22.104 (M.US$) 16.84 % 11.54 % 8.608 (Rs./KWh) Detailed Feasibility Study (Available)



Project Investment COST (MUS$)














PROJECT PROFILE 22 MW JAGRAN-IV 1. Name of Project 2. Location 3. 4. 5. 6. Capacity Gross Head Design discharge Mean annual flow Jagran-IV Hydro Power Project Located on Jagran river about 86 Km from Muzaffarabad 22.0MW 156 m 18 m3/s 15.59 m3/s 04(Francis turbines) 51.25 % 11 KV

7. No. of units 9. Plant factor 10. Generation Voltage

8. Annual Energy generated 98.20 GWh

11. Project Investment Cost 42.000 (M.US$) 12. Project Economical IRR 25.33 % 13. Project financial IRR 14. Unit Cost 15. Status 14.26 % 6.080 (Rs./KWh) Detailed Feasibility Study Completed

PROJECT PROFILE 9 MW CHANGAN - II 1. 2. 3. 4. 5. 6. 7. 8. 9. Name of Project Location Capacity Gross Head Design discharge Mean annual flow No. of units Plant factor Changan - II Hydro Power Project Located on Changan nullah about 103Km from Muzaffarabad 9.0MW 360m 3.0m3/s 1.79 m3/s 03(Pelton turbines) 48.9 % 11 KV

Annual Energy generated 38.46GWh

10. Generation Voltage

11. Project Investment Cost 17.000 (M.US$) 12. Project Economical IRR 29.50 % 13. Project financial IRR 14. Unit Cost 15.49 % 6.091 (Rs./KWh)

15. Status Detailed Feasibility Study Completed

PROJECT PROFILE 14 MW HARIYOLA-ZAMINABAD 1. Name of Project Hariyola-Zaminabad Hydro Power Project 2. Location 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Located on Agar nullah about 20 Km south of Muzaffarabad Capacity 14.0MW Gross Head 366m Design discharge 5.20m3/s Mean annual flow 3.71 m3/s No. of units 04(Pelton turbines) Annual Energy generated 75.48 GWh Plant factor 61.6 % Generation Voltage 11 KV Project Investment Cost 28.000 (M.US$) Project Economical IRR 24.85 % Project financial IRR 14.56 % Unit Cost 6.399 (Rs./KWh) Status Detailed Feasibility Study Completed FOR FURTHER DETAIL PLEASE CONTACT Azad Jammu and Kashmir AJK Hydro Electric Board B-36 Upper Chatter Housing Scheme Muzaffarabad. Phone No. Fax No. 05822-921064 05822-921063


KASHMIRI SHAWLS About Kashmiri Shawls, it is said that of all sub-continent textiles none

excel in beauty, colour, texture and design of the famous Kashmiri Shawl. Kashmiri Shawls have been renowned since centuries and were favorite of French Queen, Marie Antoinette. With a long tradition of artistic excellence, the shawl is the most admired hand-made fabric of Kashmir. Shawls are produced by two techniques, loom woven or kani shawls and the needle embroidered or Sozni Shawls. The basic fabric is of three types-Shah-Tush, Pashmina and Raffle. ShahTush (King of wool) the shawl that passes through a ring and is also known as Ring Shawl. It comes from a reare Tibetan antelope living at a height of over 14000 ft in the wilds of the Himalayas. Soft yet war, legend goes to say that it can hatch a pigeons egg. Pashmina known all over the world as cashmere wool. It comes a special goat (Capra hircus) which lives at an altitude of 12000 to 1400 ft. Potential Investment Handicrafts/SMEs Traditional Kashmiri Shawl-Bafi Shah-Tush Pashmina Raffle & others Potential Investment Areas Muzaffarabad Dhirkot Bagh Rawalakot Unit cost per project 2.500 million



A Numda is a piece of pressed felt made either out of wool and cotton or entirely of wool. Wool and cotton or unspun wool is evenly spread over a mat and then rolled and pressed underfoot for felting the felted piece is then milled, washed and dried. Plain as well as embroidered Numdahs can be seen in the entire area of Azad Jammu & Kashir. The Numdah Makes a warm, colorful and inexpensive floor covering and is also used as a mattress, where the climate is colder. Originally, the plain Numdah rug came from Yarkand and was then embroidered in Kashmir. The Numdah sizes range from 2x3, 3x4, 4x6, to 6x9 feet and 3x4, 5x6 dia in round shape. The quality depends upon percentage of wool in the felt. Popularly made quality is made 32% wool, 50% wool and 100% wool. Designs are generally styled depicting flowers and leaves, animal figures, folk life scenic views. Gabba, a Common mans carpet, is made of used lois or blankets which are washed, milled and dyed in various colors. Gabba making is a house hold craft is which family members, especially girls and women, help the embroiderers in stitching together pieces of used lois and giving them a backing of a waste cotton cloth, washing and dying is done indigenously. There are two types of gabbas-embroidered and appliqud. Bold and vivid emproidery is done mostly in woolen yarn. In some cheaper types of gabbas, a cotton yarn is used instead. In the appliqud type, pieces of dyed blankets are joined together and interspread with embroidery. Gabbas look very gay with bright flashes of designs on a dark, somber background. Potential Investment Handicrafts/SMEs Woolen Products Plain Numda Embroidered Numda Gubba Chain stitch Potential Investment Areas Muzaffarabad Unit cost per project 2.000 million

6. PAPIER MACHIE A French term so commonly adopted in the East as well as West and meaning Mashed Paper. Papier Machie is one of the most popular of crafts practiced in Azad Jammu & Kashmir today. The first Papier Machie object produced in Kashmir were Kalamdans, long horizontal cases for holding pens, brushed and ink-pots, giving it the original local name of the crafts, Kari-Kalamdani, pen case work. The techniques involved in Papier Machie production are divided into two distinct categories. The first is Sakhtasazi, making the object, the second is Naqashi, painting the surface.

Potential Investment Handicrafts/SMEs Papier Machie

Potential Investment Areas Muzaffarabad

Unit cost per project 15.000

Mineral Potential of Azad Jammu & Kashmir.

Minerals play vital role in economic development. Azad Kashmir has great mineral potential. To get the most significant benefits of mineral wealth of AJ&K. Government of Azad Jammu & Kashmir has established a separate Department of Mineral Resources. The department has issued No. of Exploration permits & Mining Leases of different minerals. With the result different minerals have been discovered. Mostly at present prospection work is being carried out. However, Precious (Ruby) & Semi Precious stones (Tourmaline etc.), Coal, Marble, Bentonite and Dolomite are being mined on small scale . The available geological information provides ample evidence that Azad Kashmir could be blessed with large mineral deposits. Presently mining sector in Azad Kashmir is, however, confined to small scale and contribute less than one percent of GDP. Mineral potential can be well utilized for sustainable socioeconomic development of local population in mineral bearing areas.

Regulatory Regime - Laws enforced in AJ&K

Regulation of Mines & Oil Fields and Mineral Development Federal Control Act, 1948. Azad Jammu & Kashmir Mines Act, 1977. Azad Jammu & Kashmir Mining Concession Rules, 2002. Azad Jammu & Kashmir Minor Mineral Rules, 1994. Consolidated Mines Rules, 2007. AJ &K Regulation of Coal Mines, 2007. AJ&K Regulation of Metaliferous Mines, 2007.

Procedure for grant of mining concessions (Major Minerals)

Applications are received on prescribed proforma alongwith application fee, proof of financial capabilities of the applicant and 10 copies of the Topographic map of the area. Initially exploration permits are issued for one year and exploration licences for 1-3 years. Exploration licences/exploration permits are converted into mining leases / mining permits on submission of exploration report by the licence holders. Conversion fee for exploration licences into mining leases is Rs. 25000/- and for exploration permits into mining permits is Rs. 5000/Mining leases may be granted upto 30 years and mining permits upto 10 years. Exploration Licenses/Mining Permits/mining leases are granted with prior approval of Mines Committee / Mines Sub-Committee.

Incentives Available to Mineral Projects -Under National Mineral Policy. Rate of Corporate Tax. o 30% for public sector companies o 35% for private or non-resident mining companies. Minimum Corporate Tax. o A minimum amount of corporate tax is payable annually at the rate of 0.5% of the declared turnover. Withholding Taxes. o Withholding tax levied on dividends paid from mining profits to nonresident corporate share holders will be set at 7.5% but adjustable against final tax liability. Non-Resident Contractors: o The rate of withholding tax on non-resident contractors engaged in mining operation will be 6% of the gross payments made to them. This will represent their full final tax liability. Interest: o Interest paid to non-residents in respect of availed approved loans is exempt from withholding tax. Sales Tax: o No sales tax will be levied on minerals which are exported. Zakat:o Non-Muslims and non-resident share holders of a company are exempt from the requirement to pay zakat on dividends. Import of Mining Machinery: o Special concessions are given on imports of mining machinery and equipment. Royalty:- in lieu of local levies etc. Protection from expropriation: The Protection of Economic Reforms Act 1992, provides that no foreign industrial or commercial enterprise established or owned in any form by a foreign or Pakistani investors shall be compulsorily acquired or taken over by the Govt. the mining sector will equally have this protection.

(Form No. M-1) 1000F

Govt. Press Mabad

Application For
1) Name (s) of applicant (s) in Full ________________________________________________________________________________


If application is by an individual:a) Address _________________________________________________________________________________________________ b) Nationality _______________________________________________________________________________________________ c) Occupation _______________________________________________________________________________________________ d) Capital available (enclose Book Certificate showing latest credit balance and other documentary proof) ____________________________________________________________________________________________________________ ____________________________________________________________________________________________________________


If application is by partnership or firm:a) Principal place of business ___________________________________________________________________________________ b) If principal place of business is outside Azad Kashmir/ Pakistan name and address of duly authorized agent in Azad Kashmir Pakistan ___________________________________________________________________________________________________________

c) Capital available (enclose book certificate showing latest credit balance and other document proof) ______________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________ d) Main business of application (s) (enclose a certificate copy or partnership deed and registration certificate issued by registrar of Firms). ______________________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ Name of Partners (1) (2) (3) (4) (5) (6) 4) Nationality Share & amount contributed

__________________________________________________________________________ __________________________________________________________________________ _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________

If application is by a company:a) Principal place of business ______________________________________________________________________________________________________________________ b) If Principal place is outside Azad Kashmir/ Pakistan name and address of duly authorized agent Azad Kashmir / Pakistan ______________________________________________________________________________________________ c) Nature of business ____________________________________________________________________________________________________ d) Authorized subscribed and paid up Capital (enclose Book Certificates showing latest credit balance and certified copies of Memorandum of Association and Certificate of incorporation)

e) Name of Districts f) Name of Principal

Nationality Nationality Amount of shares hold

5) 6) 7) 8)


Share holders By share holders State mineral or group of minerals for which prospecting license or mining lease is required ________________________________________________________________________________________________________________________________ State whether a prospecting license or a mining lease is required ____________________________________________________________________________ Period for which license is required ____________________________________________________________________________________________________ Situation and size of the area for which application is made (the name of village, Khasra Numbers, Tehsil and district, appropriate Revenue record, sketch of the area and topographic map 1 to a mile with geographic bearing must accompany) _____________________________________________________________________________ Brief particulars of previous experience in mining giving details of prospecting licenses or mining leases or both already held or applied for in or outside Azad Kashmir / Pakistan______________________________________________________________________________________________________________________________ Name and qualification of technical experts or advisers who have prepared or certified the Exploitation Scheme and will be available for supervision (enclose two of copies of the Exploitation Scheme prepared or certified by Expert) ________________________________________________________________________________ State amount of capital for operations under the license or lease applied for:a) at present available ______________________________________________________________________________________________________________ b) Which application make available and the source. ____________________________________________________________________________________________________________________________________ ((Please give Bank reference or some documentary proof in support of your statement). I f the application is an alien or a company incorporated outside Azad Kashmir / Pakistan. State full particulars of the company to be incorporated by the application in Pakistan for the purposes of receiving the grant of any license or lease which may be granted including particulars similar to those specified in 4 (d) (e) (f) and 11 above and the amount of the capital proposed ___________________________________________________________________________________________ (Documentary evidence of incorporation of the company in Azad Kashmir / Pakistan should be furnished along-with a copy of Memorandum an Articles of Association and prospectus of the company as soon as the company has been incorporated in Azad Kashmir / Pakistan. ___________________________________________________________________________________________________________________________________ Any special remarks _________________________________________________________________________________________________________________ I/We hereby declare that all the foregoing particulars are correct. A/We hereby undertake to reserve the amount of credit balance certified by the Bank as my / our capital exclusively for investment on works connected with the license or lease applied. I/We hereby solemnly declare that event of Government me us the required License / Lease. I/We will abstain from all political activity / activities what so ever affecting the sovereignty of Azad Kashmir / Pakistan or such as may be tantamount to interference in its internal affairs and that i/We will eschew all espionage. In the Event of any violation of this undertake by me / us the Government shall have the right to cancel the license / lease provided that any dispute as to whether any of my / our activities can be considered as a violation of this undertaking, shall be decided in accordance with Rule 74 Azad Jammu & Kashmir Mining Concession Rules 1977 and the appropriate clause in the license / lease. Signature (s) of Application (s) __________________________ Date ____________________ The applicant is a company State capacity in which form is signed. Note). Application fee should be deposited in advance in any Government treasury in Azad Kashmir under the head XXXII-Industries-Mineral receipts arising out of Mines and Oil Fields and Mineral Development (Federal Control) Act, 1948. Other receipts at the rate of (a) Rs. 30 per mineral for the first 400 acres and rupees 10 for each additional 400 acres or part thereof in case of prospecting license, and (b) Rs. 60 mineral in case of mining lease. A receipt copy of the chalan should accompany the applicant, which should be addressed to the Director Mineral Resources, Azad Govt. of the State of Jammu and Kashmir, Muzaffarabad.

10) 11)





Directorate of Mineral Resources Govt. of Azad Jammu and Kashmir Muzaffarabad.

Phone No.05822-920045


Azad Kashmir Mineral & Industrial Development Corporation (AKMIDC), a state enterprise of the Govt of AJ&K, was established in 1971 under Act XVII. The Corporation soon after its creation started mineral exploration & evaluation activities in the state which are continued till now. The geological environment of AJK is comprised of three types of rocks, i.e. Sedimentary, Igneous and Metamorphic. The type of mineral deposits found are; Industrial Minerals, Gemstones, precious Metals and Base Metals. The Industrial minerals and base metals are found in all the three rock type and thus spread in the whole of the AJK territory, whereas gemstones are confined to metamorphic terrain and thus occur in the upper parts of Neelum Valley. The most economically promising mineral deposits are ruby, graphite, bentonite, granites & cement materials and AKMIDC prepared comprehensive studies of these deposits. The worth of proven mineral deposits is more than Rs. 70 million.


Name of Mineral & Location District Ruby Neelum Graphite Neelum Bentonite - Mirpur & Bhimber Granite Marble - Muzaffarabad, Neelum & Kotli. Limonite- Muzaffarabad

Proved Reserves (Million Tons) 40 million grams 01.000 04.000 01.000 19.000

Probable Reserves (Million Tons) 05.000 00.000 04.000 14.000 15.000

Total Reserves (Million Tons) 45 million grams 01.000 08.000 15.000 34.000

1 2 3 4 5




Coal - Muzaffarabad,& Kotli.




Lime Stone Muzaffarabad




Gypsum. Muzaffarabad & Hattian Bauxite Kotli Fireclay Kotli Quartzite - Kotli Pozzollana Kahuta




10 11 12 13

05.000 05.000 05.000 00.500

02.000 02.000 02.000 0.500

07.000 07.000 07.000 01.000