A Brief Summary of Opportunities in NE India

Covering the states of Assam, Meghalaya and Nagaland

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Contents
1. NORTH EAST INDIA ........................................................................................................................ 2 1.1. 1.2. 1.3. 2. Economy: ................................................................................................................................. 2 Advantage North East ............................................................................................................. 2 North East Industrial And Investment Promotion Policy ......................................................... 4

ASSAM ............................................................................................................................................ 7 2.1. 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. 2.8. 2.9. 2.10. Demography:........................................................................................................................... 7 Economy and Industry............................................................................................................. 8 Industrial Policy and Incentives ............................................................................................... 9 Food Processing: ................................................................................................................... 13 Urban Development .............................................................................................................. 14 Health Care ........................................................................................................................... 17 Textiles and Apparel .............................................................................................................. 18 Education .............................................................................................................................. 18 Information Technology ........................................................................................................ 19 Tourism ............................................................................................................................. 19

3.

NAGALAND ................................................................................................................................... 22 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. Demography:......................................................................................................................... 23 Economy ................................................................................................................................ 23 Policy and incentives: ............................................................................................................ 24 Food Processing .................................................................................................................... 25 Urban Development .............................................................................................................. 26 Information Technology ........................................................................................................ 28 Tourism ................................................................................................................................. 28

4.

MEGHALAYA................................................................................................................................. 29 4.1. 4.2. 4.3. 4.4. 4.5. 4.6. Demography.......................................................................................................................... 30 Economy and Industry........................................................................................................... 31 Policy and Incentives ............................................................................................................. 32 Agro - Food Processing .......................................................................................................... 33 Urban Development .............................................................................................................. 34 Tourism ................................................................................................................................. 35 Page | 1

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1. NORTH EAST INDIA

The eight states of Arunachal Pradesh, Assam, Manipur,

Meghalaya, Mizoram, Nagaland, Sikkim and Tripura comprise the North East of India. The region is surrounded by Tibet, Bhutan, Nepal, Bangladesh and Myanmar on all sides except a narrow corridor which connects the region with other parts of India. The region is one of the most bio diverse regions in the world with a forest cover of over 65%. The NER of India covering an area of 0.262 million sq. km. accounts for 7.9% of total geographical area of the country and 3.77% of total population of India.

1.1.

Economy:
The region is well endowed with natural resources, the primary resources being, oil and gas, agro-horticultural resources,

substantial mineral deposits , immense hydro electric potential and significant forest resources. However, despite the resources, the region has lagged behind rest of the country in terms of realizing its growth potential. Economy of the region is largely agrarian in nature with over 70% of the population engaged in agriculture for livelihood, service sector comes next and the manufacturing sector is still at a nascent stage. However the packages of incentives announced by the

Government of India and respective state governments has of late resulted in generation of significant investor interest and substantial investment in the industrial, infrastructure and tourism sectors can be expected in the near future.

1.2.

Advantage North East

A strategic location for foreign and domestic investors to tap the vast contiguous markets of Myanmar, China, Malaysia, Thailand, Singapore, Philippines, Indonesia and other East and South East Asian countries. Page | 2

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Proximity to SAARC countries like Bangladesh, Nepal and Bhutan, which offer enormous possibility for trade and investment.

A region with very high literacy rate (over 70 %), and large number of people fluent in English. A strong potential for growth of

information technology enabled services. Virtually tax-free fiscal package, subsidies on capital investment, transport and working capital. Unparalleled Tourist Attractions: Wildlife sanctuaries, adventure tourism, eco-tourism, hill stations, lakes, historical heritage-the Northeast has it all. The region has 8 per cent of the countrys total land space and 3.7 per cent of the countrys population. A distinct demographic edge over rest of the country. An emerging market of 400 million people, including the neighbouring nations of Bangladesh, Myanmar, Bhutan and Nepal. Potential to be Indias future powerhouse. It has 38 per cent of hydropower potential of the country estimated at nearly 50,000 MW, natural gas reserves of 190 billion cubic metres, coal reserves of over 900 million tonnes and oil reserves of over 500 million tonnes. Large Mineral Resources including limestone reserves of around 5000 million tonnes and a forest cover which is 25 per cent of the countrys forest area. Phenomenal bio-diversity forest wealth, agro base, fruits and vegetables, herbs, aromatic plants, exotic flowers, other flora and fauna. Large variety of agricultural produce rice, maize, millets,

sugarcane, jute, cotton, rubber, tea, mustard, grapes, guava, coconut, coffee, apples, pineapples, passion fruit, walnut, brinjal and a vast range of fruits and vegetables. North East: Potential hub for International Business: 98% of the borders of the North-East are international borders with Page | 3

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Bangladesh, Myanmar China and Bhutan.

In an increasingly

globalizing world, the importance of this gateway cannot be ignored. The proposed Trans- Asian Highway will pass through the north east to connect India with Myanmar, Thailand and even Singapore. North East: Powerhouse of India: The North East has nearly 50,000 MW of hydro power potential (over 35% of the Indias hydro power potential) If the availability of gas in the North-East, and the

possibility of imports from Myanmar and Bangladesh in the future is taken into account, the region is a veritable power house of energy. North East : Opportunities in Agro and Food Processing Be it the forest wealth, fruits and vegetables, herbs, aromatic plants, or exotic flowers, the biodiversity in the North East is indeed unparalleled. It is indeed a land that is blessed with unlimited opportunities. Tourism opportunities : The North East has wonderful natural tourist attractions some of which can compare well with the best in the world. Rich in Manpower Resources: With high literacy rates of over 70%, and in some states over 90%, the North-East has people skills that can be harnessed for many service sector industries. Handloom and Handicrafts: The demand and acceptance of the rich and exquisite handloom, handicrafts, and cane and bamboo items from the North Eastern Region has been increasing by leaps and bounds. It is rare to find such diverse and exquisite products which are so full of vibrancy and colour.

1.3.

North East Industrial And Investment Promotion Policy

In order to promote investments in the region, the Government of India in 2007 has announced a very attractive industrial and investment promotion policy. The major incentives available under the policy are listed below Biswajit Chakrabarty Page | 4

i.

Capital Investment Subsidy: 30% of investment in plant and machinery for new investments and for substantial expansion of existing industrial units.

ii.

Excise Duty Exemption: Refund of excise duty paid on value addition done in the North Eastern Region.

iii.

Income Tax Exemption: Income Tax exemption to new units for a period of 10 years.

iv.

Interest Subsidy: Interest Subsidy @ 3% on working capital loan

v.

Comprehensive Insurance: 100% insurance premium for new industrial units and units undergoing substantial expansion.

vi.

Incentives for Service/other Sector Industries: Incentives under NEIIPP, 2007 are applicable to the following service sector activities/industries:a. Hotels (not below Two Star category), adventure and leisure sports including ropeways ; b. Medical and health services in the nature of nursing homes with a minimum capacity of 25 beds and old-age homes ; c. Vocational training institutes such as institutes for hotel management, entrepreneurship catering and food and crafts, para-

development,

nursing

medical, civil aviation related training, fashion, design and industrial training. vii. Incentives for Biotechnology industry: The biotechnology industry is also eligible for benefits under NEIIPP, 2007 as applicable to other industries. viii. Incentives for Power Generating Industries: Power generating plants upto 10 MW are eligible for all subsidies under the NEIIPP. Page | 5

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ix.

Transport Subsidy Scheme: 90% of the transportation cost on import of raw materials from Siliguri to factory site and export of finished products from factory site up to Siliguri computed on the basis of railway freight certificate. 90% of transportation cost of raw materials from any place of north-eastern states (outside Assam) and 50% of

transportation cost on finished products from Assam to any place of NER states (outside Assam).

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2. ASSAM
The state of Assam is situated in the North Eastern part of India bounded by 6 other NE states of Meghalaya, Arunachal Pradesh, Nagaland, Tripura, Mizoram, Manipur and shares international borders with Bangladesh and Bhutan. The state covers a total of 78,438 sq Km (2.4% of India) and is the most developed state in the North East contributing most of the regional GDP. Assam is known for its tea, petroleum resources, and silk and for its rich biodiversity. It has an annual rainfall of 2000 mm on average and agriculture is the main occupation of the state.

The state has 27 districts (including 4 new districts of BTAD).

2.1. Demography:
Total population of Assam was recorded at 31.17 million in 2011, 86% of which live in villages and 14% live in urban areas. The state is home to a large number of ethnic communities. While the Brahmaputra valley is populated largely by Assamese and a large number of tribal groups; major among them being the BoroKacharis, the Deori, the Misings, the Dimassas, the Karbis, the Lalungs, the Rabhas etc, the three Barak Valley Districts are populated largely by Bengalis. Page | 7

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Table 1: Demographic Profile of the state

Background Characteristics Data

Geographic Area (in Sq. Kms) Total population (Census 2011) Population Urban Population Rural Population Female Population Male Decadal Growth Rate Population density Literacy rate Total Literacy rate Male Literacy rate Female Sex Ratio - Total

78,438 31,169,272 4,388,756 (14.08%) 26,780,516 (85.92%) 15,214,345 15,954,927 18.85 397 73.18 % 78.81 % 67.27% 954/ 1000

2.2. Economy and Industry

The economy of the state is dominated by Agriculture and service sector, other important areas are tea production, petroleum, handloom and Handicrafts. Agriculture is the biggest employer in the state employing close to 70% of the total workforce. Assam is the largest tea producer in the country; it produces about 51% of Indias total tea production and about 1/6th of the world production. This industry generates about 50 million kg of tea annually. Assam also accounts for 15% of the total crude oil production and 50% of the total onshore oil output of the country. The state is well known for its muga silk which is endemic only to the state. 2.2.1. Industry in Assam Among the seven states of the North East region, Assam is the most industrially advanced state by virtue of its comparatively

favourable geographical location, coupled with the availability of reasonable infrastructure facilities. There are several agriculture, forest and mineral based medium and large scale as well as small scale industries. The most important industries of Assam are Oil and Natural Gas (50% of India's on-shore production), Tea (53% share in all India production), paper, cement and petrochemicals. Jute, oil Page | 8

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seeds, tobacco, Fertiliser, Textiles, Plywood and Sugarcane are some of the most prominent industries in Assam. Handicrafts and Handlooms occupy pride of place among the small and medium industries. 2.2.2. Industrial Infrastructure: The government of Assam is making substantial efforts to bring about industrial development of the state. As part of its efforts, the government through its state PSUs, namely Assam Industrial Development Corporation Ltd (AIDC), Assam Small Industries Development Corporation (ASIDC) and Assam Industrial

Infrastructure Development Corporation Ltd (AIIDC), has set up a number of industrial infrastructure projects. Some of the key Industrial Infrastructure in the state are listed below. i. ii. Export Promotion Industrial Park(EPIP) near Guwahati 3 industrial growth centers at matia, balipara and chaygaon iii. 11 Industrial parks (IID centers) spread out across the state. (two more proposed) iv. Number of smaller industrial areas estates spread across the state. v. vi. vii. Food Processing Park at Chaygaon near Guwahati Agri Export Zone for Ginger (sanctioned) Mega Food Park (Upcoming)

2.3.

Industrial Policy and Incentives

In addition to the thrust given by the Central Government for the promotion of industries in the North Eastern region, the state of Assam has also undertaken several policy initiatives to promote economic growth. Some of the important policy initiatives are: The Assam Industrial Policy, 2008 IT Policy 2008 Page | 9

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Given below is a brief overview of the various enabling policies announced by the state Government 2.3.1. The Assam Industrial Policy 2008 Given below is a brief review of the key provisions the policy. Any new unit as well as existing units which go in for substantial expansion and which commence commercial production within the period of validity will be eligible for the incentives. Development of Industrial Infrastructure: Development of quality infrastructure for industrial growth will be accorded highest priority not only in the public but in the private sector as well. Provision of uninterrupted quality power supply shall be ensured through dedicated feeders from grid sub-station of power distribution companies in the Industrial Parks/ estates/ areas by the government. Adequate road and rail connectivity, wherever possible, will be ensured in all new Industrial Estate/ Park proposals. The major incentives under the policy are listed below: i. Interest subsidy on term loan: 30% of the amount of interest paid on term loan for a period of 5 years from for micro enterprises (upto Rs. 1.00 lakhs per unit). ii. Power subsidy: 30% for load upto 1MW and 25% for others for 5 years (ceiling of Rs.2.5 milion) iii. Subsidy on quality certification/technical know-how: 50% of cost ( ceiling or Rs. 0.1 milion) iv. Subsidy on Drawal of Power line: 25% of the cost payable to State Power Distribution Company (ceiling of Rs. 1 million per unit). v. Vat Exemption: 99% of the tax payable under the Assam Value Added Tax Act, 2003 and the Central Sales Tax Act, 1956 for seven years subject to maximum 200% / 150% / 100% of capital investment for micro small and medium/ large units. Page | 10

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vi.

Exemption from Stamp Duty and Registration Fee: 100% reimbursement of the stamp duty and registration fees against submission of equivalent Bank Guarantee from a nationalized bank that the Industrial Park/ Estate will be set up within a period of 3 years.

vii.

Special Incentives for Mega Projects: For projects with large capital investment of minimum Rs. 100 crores or generating a minimum of 1000 regular employment and having potential for development of ancillary industries based on their products, termed as mega projects, all incentives including priority land allotment, the ceiling amount of subsidy and or the period of validity of Tax concessions under this policy will be relaxable on case to case basis to be decided by a High Power Committee specially constituted by the Government for the purpose.

2.3.2. IT Policy of Assam, 2008 Incentives shall be available to the new units as well as existing units undergoing expansion/ modernization. Salient features of the policy are given below : i. Power Subsidy: Power subsidy of 50% subject to a ceiling of Rs.5.00 lakhs per year for 5 years. ii. Subsidy on Generating set: 50% of the cost of the generating set on captive generating set including non-conventional energy generation (ceiling of Rs. 1 million). iii. Interest Rate Subsidy on Working Capital: @ 30% of the

amount of interest on Working Capital Loan for a period of 5 (five) years, ceiling of Rs.5.00 or 20% of the turn over whichever is less. iv. Subsidy on Bandwidth for connectivity: 30% subsidy on Bandwidth for connectivity paid to ISP for 3 years. v. Manpower Development subsidy: available for a period of 5 years subject to following cellings Page | 11

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Investment in fixed capital Up to Rs. 20.00 Iakh Rs. 20.00 lakh to Rs. 25.00 lakh Rs. 25.00 Iakh to Rs. 50.00 Iakh Rs. 50.00 lakh to Rs. 100.00 lakh Above Rs. 100.00 lakh

Total Ceiling Rs. 1.50 lakh Rs. 2.00 Iakh Rs. 3.00 Iakh Rs. 5.00 Iakh Rs. 10.00 lakh

vi.

Special Incentives for Mega Projects: The Government would consider special incentives on a case by case basis in addition to the benefits already provided. (investment of Rs.10 mil or more).

vii.

Special Incentives for IT Enabled Industries and Electronic/IT hardware manufacturing industries: In addition to the benefits provided to IT Industries the following benefits shall be provided for IT enabled Services and Electronics/IT hardware manufacturing industries:Fiscal incentives: 100% Stamp Duty exemption 100% exemption from payment of Electricity Duty Exemption from payment of Entry Taxes Double FSI (FAR) for units built in IT parks/ HW parks

Non Fiscal: No restrictions on employing women workers at late hours ITeS and Electronic/IT hardware manufacturing industries to be treated as essential services Unlimited captive and backup power generation would be permitted These units would be treated as Independent Power Producers

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Potential Sectors
2.4. Food Processing:
Assam, the second largest State in North East India accounts for a bulk of the regions population and is by far the most advanced in terms of agricultural production. The state has fertile land, abundant rainfall and close to 70 % of its population is engaged in agriculture. In terms of state domestic product (NSDP at current prices), agriculture sector contributed 25 % of the state income in 2010 -2011. The principal food crops produced in the state are rice (paddy), maize (corn), pulses, and a number of fruits and vegetables, while the principal cash crops are tea, jute, oilseeds, sugarcane, cotton etc. The agro-climatic conditions in the state offer excellent scope for growing different horticultural crops like fruits,

vegetables, spices, plantation crops, medicinal and aromatic plants. Assam has five agro climatic zones and key horticultural crops grown in these zones are given in the table below:

Agro-climatic Zones North Bank Plain Zone Upper Brahmaputra Valley Zone

Potential Horticultural Crops Grown Banana, Orange Potato, Vegetables, Lemon, Banana, Orange, Pineapple Potato, Vegetables, Lemon, Arecanut, Jack fruit, e, Guava, Litchi, Mango Banana, Potato, Vegetables, Lemon, Orange, Arecanut, Jack fruit, Pineapple, Guava, Litchi, Mango Banana, Potato, Vegetables, Lemon, Orange, Arecanut, Jack fruit, Pineapple, Guava, Litchi, Mango Banana, Potato, Vegetables, Lemon, Orange, Arecanut, Jack fruit, Pineapple, Guava, Litchi, Mango

Districts/Areas Darang, Sonitpur, Dhemaji, Lakhimpur Sibsagar, Tinsukia, Dibrugarh, Jorhat, Golaghat.

Central Brahmaputra Valley Zone Lower Brahmaputra Valley Zone Barak Valley Zone

Nogaon, Morigaon, Kamrup, Karbi Anglong, Udalguri Nalbari, Barpeta, Bongaigaon, Kokrajhar, Goalpara, Dhubri, Baksa Cachar, Karinganj, Hailakandi, N. C. Hills

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Apart from production within the state, the neighbouring states also produce substantial quantities of Agro Horticultural products which

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would be easy to access for any processing facility set up in the state. 2.4.1. Marketing System & Channels The vegetable and fruit markets of Assam are mature and developed as compared to any other markets of the region. This is mainly due to the fact that it is a major transit corridor and feeder line to other north-eastern states both for dispatches as well as receipts. There are about 22 regulated, 179 non-regulated market and more than 1300 haats. The major fruit and vegetable markets of the state are in Guwahati (Fancy Bazaar & Machkhowa), Kharupetia, Silchar, Tezpur, Tinsukia, Dibrugarh, Uparhali, etc. Mega Food Park: A project that is likely to create great opportunities for food processing industries in the state is the North East Mega food Park, which is coming up in Nalbari District of Assam at a distance of about 90 kms from Guwahati, the state capital. The mega food park which is being developed as a public private partnership initiative will offer developed plots of land, standard design factories, warehouse, Quality Control Laboratory, logistics facilities, and amenities like power and water supply. The mega food park will also provide raw material linkages through a network of primary processing centres and collection centres spread out across the region. 2.4.2. Investment Opportunities: Investment opportunities exist in i. Setting up processing facilities in the mega food park or one of the other industrial parks in the state. ii. Agro Logistics Cold Chains, Cold Storages, Warehouses, refregerated transport, pack houses etc. iii. Export of fresh produces Page | 14

2.5. Urban Development

Although majority of Assams population still lives in rural areas, increasing urbanisation is putting considerable pressure on the

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available urban infrastructure in the state. In most cases the growth of the cities and towns have been so fast that urban infrastructure has not been able to keep pace with the demands of the increasing population. A number of initiatives by the government has seen some fast paced infrastructure development happening in the major urban areas, particularly Guwahati. The state has over 100 notified urban areas and 7 major urban agglomerations which are listed below. 2.5.1. Guwahati Guwahati is the largest and most important city of North Eastern India. The city has a population of close to a million people (963,429 people as per 2011 census). Apart from being the gate way for entire NE India, the city has over the years become a important centre of education, healthcare and commerce. As a result a large number of people from all over the north east and other parts of the country visit the city, putting considerable pressure on the civic infrastructure. Guwahati is situated between the southern bank of the

Brahmaputra river and the foothills of the Shillong plateau, with LGB International Airport to the west and the town of Narengi to the east. It is gradually being expanded as North Guwahati to the northern bank of the Brahmaputra. The Guwahati Municipal Corporation, the city's local government, administers an area of 216 km, while the Guwahati Metropolitan Development Authority, the planning and development agency of the city, administers an area of 340 km. Potential areas for development: The city of Guwahati is going through rapid infrastructure development and a revised city master plan has been prepared. A solid waste management project is already underway through a PPP structure, a comprehensive water supply scheme is being implemented, roads have been developed with support from various agencies including the Government, and Page | 15

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a modern city bus system has been commissioned under the JNNURM scheme of Government of India. However there is still scope for development in many other areas. Some of the key areas where there are possibilities for investment are: Transportation (Bus Rapid Transport System) River front beautification (Proposed) Development of bridge over Brahmaputra connecting North Guwahati Development of Wholesale market complex and logistics complex. 2.5.2. Silchar The headquarters of Cachar district in southern Assam, Silchar is the 2nd largest city in Assam. The Urban agglomeration of Silchar is home to 228,985 people. Situated on the banks of the Barak River, it is a trade and processing centre for tea, rice and other agricultural products. There is limited industry, principally papermaking and teabox manufacturing. The city has an airport and lies on both a rail head and national highways connecting to Guwahati, Assam; Agartala, Tripura; Imphal, Manipur and Aizawl in Mizoram. Over recent decades, the city has witnessed a huge influx of people due to its increasing prospects and developments in the field of education, medical facilities etc. The influx of people has put tremendous strain on the civic infrastructure and the city is in need of urgent investments in all areas of urban infrastructure. Potential Areas for development: Some of the potential areas of investment in the urban infrastructure in Silchar are listed below: City Roads Urban Water Supply Solid Waste Management Storm water drainage system Sewerage and drainage Page | 16 Storm water drainage system Sewerage and drainage

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2.5.3. Dibrugarh The urban agglomeration of Dibrugarh has a population of 154019 as per 2011 census. Located in upper Assam (Eastern Assam), the city is a important center of tea and petroleum production. The city is also a important center of education and health care. Potential Areas for development: Although the city has initiated a number of development projects, potential still exists for

development in many other areas some of which are listed below: River bank protection, (creation and maintnence of dykes) Urban Transportation Sewerage and drainage

2.6. Health Care

Like most other states in the country, in Assam too, the backbone of primary health care is provided by the public health care infrastructure. Tertiary and secondary health care is provided by a few government run hospitals and increasingly by private hospitals. In the public health care system in Assam has quite a extensive network for providing primary health care which consists of 108 community health centers (only 37 of which are FRUs), 844 primary health centers and over 4500 sub centers. However in the area of secondary and tertiary health care the available infrastructure is rather limited and it consists of only three medical colleges, 24 District Hospitals. The situation of specialty health care also leaves much room for progress, with most patients requiring specialist health care traveling outside the state for treatment. Private Sector in Health Care: The private sector has realized the opportunity offered by this relative vacuum in tertiary, secondary and specialist health care and a number of hospitals and nursing homes in the private sector have come up. However, private sector hospitals is Assam are unevenly distributed. Most of the private Biswajit Chakrabarty Page | 17

hospitals are clustered in and around the Guwahati Metropolitan Area. At present there are 131 private hospitals scattered over 13 districts of the state, which are catering to the patients from not only Assam but from the other NER states, and even some neighboring countries like Bhutan. Opportunities for development: There exists tremendous possibilities for setting up tertiary, secondary and specialty healthcare facilities in the state and also in medical education.

2.7. Textiles and Apparel

The indigenous handicrafts that in other parts of the India are confined to professional castes have been practiced as household industries in Assam and most of the North East since ancient times. Assam has over 1.3 million looms on which weavers create exquisite hand-woven textiles from different varieties of silk, cotton and even synthetic fiber. Muga silk which has a natural golden color is produced only in Assam and has found favour in many international markets like Japan. With improved designs and imaginative use of the fabric, the handloom textiles of Assam can be crafted into very versatile fashion fabrics.

2.8. Education
In India the need and demand for higher education has

continued to witness rapid growth over the recent past, owing to its emergence as a knowledge-based economy. The situation in NE India is no different. While the number of successful students in higher secondary has to absorb grown considerably, the these students has not number of

institutions

increased Page | 18

proportionate to the demand. For example, against a demand of 6000 7000 higher and technical education seats annually Assam has three engineering

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colleges

(excluding

IIT)

in

the

government

sector-

Assam

Engineering College, Guwahati, Jorhat Engineering College and National Institute of Technology, Silchar - with an intake capacity of 750 students (now increased by additional 300). Private sector led initiatives have added established a few higher and technical education institutions and universities in the region. However the demand still far outstrips supply. As a result a large number of students from the region are forced to migrate outside the region in search of quality education and a larger number are forced to take up general degree courses with no career plan in sight. There is therefore substantial potential for development of higher and technical education infrastructure and for collaboration with institutions in the state.

2.9. Information Technology

Skilled human resources, a salubrious climate and high English literacy makes the state a ideal destination for IT and ITES industries. The state government has drawn up a comprehensive IT policy to keep pace with the fast changing needs of the IT Industry and attract investments in the sector. sector are in Setting up IT development centers IT enabled services E Governance applications, particularly in services delivery. Business opportunities in the

2.10. Tourism
The State of Assam is one of the most beautiful regions of India. Its natural landscape, rich flora and fauna, lush green forests and wild life sanctuaries offer a wide choice to cater to the tastes of tourists. It is known for historical monuments, pilgrimage spots, tea gardens Page | 19

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and its colourful cultural festivals. It is one of the best destinations, where one can encounter a great variety of rare and endangered wildlife species as well as can enjoy sports like angling, trekking, rock climbing, mountaineering, etc. Despite a lack of infrastructure, tourist arrivals in the state are showing a steady rising trend:
Assam tourist inflow 2009 3.85 14.9 2010 4.05 15.2 2010 4.34 16.4

Domestic (million) Foreign (thousand)

Some Important tourism attractions in the state are outlined below: 2.10.1. Nature Based Assam has five National Parks - Kaziranga National Park, the Manas National Park, Nameri National Park, Orang National Park and Dibru-Saikhowa National Park. Kaziranga is a World Heritage Site and it is famous worldwide for the one-horned rhinoceros and a large variety of deer, buffaloes, elephants, tigers, and rare birds etc. It has also earned the distinction as one of the most tourist friendly National Park in the country. Further some basic accommodation facilities are also available at the Park. Manas, another World Heritage Site is famous for its Tiger Project, and wild life, more specifically Tiger & the Golden Langoors. The Nameri National Park, Dibru-Saikhowa and Bhalukpong in Sonitpur district are ideal locations for eco tourism activities. Similarly the Joypur Rain Forest and Dihing-Patkai and Dibru-Saikhowa etc could be developed as potential destinations for nature based and eco tourism.
2.10.2. River Tourism

Brahmaputra, one of the biggest rivers of the world, traverses through Assam for about 800 kms. It is not just a mighty river but the life-line of the people of Assam. Its vast riverfronts have the potential for development as a major attraction for tourists from all over the world. River expeditions, cruising, boating etc on Page | 20

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Brahmaputra and Barak River in Barak Valley, angling, canoeing, para-sailing, white water rafting etc can provide ample scope for growth of both river and adventure tourism. River cruises on the Brahmaputra from Guwahati, organized by the Govt and private sectors, have already gained considerable popularity. 2.10.3. Tea & Golf Tourism With more than 800 large tea estates, their beautiful ambience, colourful people, the old heritage bungalows, some of which were set up by the British, could make Assam a paradise for leisure seekers. Also, as many as 20 Golf Courses in and around the tea gardens present yet another major source for promotion of GolfTourism. 2.10.4. Business Opportunities: Opportunities exist for Setting up hotels and eco resorts Setting up amusement parks and Theme Parks River Cruises Collaboration with local tour operators for inbound and outbound tourism

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3. NAGALAND
Located in eastern part of North Eastern Region (NER), Nagaland is the 16th State of India. The erstwhile Naga Hills a part of Assam and North East Frontier Agency, became a separate State of India on December 1, 1963.

Nagaland has a total area of 16,579 sq. km, which accounts for a 0.5% of the area of the country and 6.4 % of the area of the North Eastern region and comprise of twelve administrative districts. The state is bounded by Assam in the west, Myanmar (Burma) on the east, Arunachal Pradesh and part of Assam on the north and Manipur in the south. Administratively the State has been divided into eleven districts, which are further subdivided into 52 blocks with 1286 inhabited villages. The climate is comfortable all through the year. The temperature of the state ranges from 16C to 31C in summer (May to July) and 4C to 24C during winter. The monsoon that spreads from the month of June to early September is marked by heavy rains. Page | 22

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3.1. Demography:
Table 2: Demographic Profile of the state
Background Characteristics
Geographic Area (in Sq. Kms) Total population (Census 2011) Population Urban Population Rural Population Female Population Male Decadal Growth Rate Population density (per sq km) Literacy rate Total Literacy rate Male Literacy rate Female Sex Ratio - Total 16579 1,980,602 573,741 (28.97%) 1,406,861 (71.03%) 954,895 1,025,707 -0.47% 119 80.11 % 83.29 % 76.69% 931/ 1000

Data

3.2. Economy
Agriculture is the most important economic activity in Nagaland, employing more than 70% of the population. Major crops include rice, corn, millets, pulses, tobacco, oilseeds, sugarcane, potatoes and fibers. Bamboo, cane, handicraft and weaving are other traditional occupations. The secondary sector is small. Traditional village industries based on local forest product form the backbone of this sector. Tourism is important, but largely limited owing to the state's geographic isolation and political instability in recent years. In addition to substantial reserves of nickel, cobalt, chromium, highgrade limestone, marble and coal Nagaland has reserves of 600 million tons of crude oil and natural gas. Apart from this, the state also has significant potential for development of hydro power projects, food processing industries, tourism and international trade with Myanmar. Given below is a brief profile of some important sectors and a short description of the opportunities available. Page | 23

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3.3. Policy and incentives:

Apart from the North East Industrial and Investment Promotion Policy(NEIIPP) the following state government incentive schemes are also available in the state Incentives Available under Nagaland State Industrial Policy i. Power Subsidy: At the rates of 30% and 25% for connected loads upto 1 MW and above 1 MW respectively for a period of 5 years subject to a ceiling of Rs 0.2 million annually. ii. Drawal of Power Line: Reimbursement of cost of drawal of 33/11 KV line outside developed industrial area subject to a maximum limit of Rs. 0.2 million

iii. Subsidy for Feasibility Study Cost: 50% of the cost of Detailed Project
Report subject to a ceiling of Rs. 0.1 million. iv. Manpower Subsidy: Reimbursement upto 25% of actual wage bill for local tribal employees for three years subject to a maximum limit of Rs. 0.5 million. v. Special Incentives for 100% Export Oriented Unit (EOU): Additional 5% Capital Investment Subsidy subject to maximum ceiling of Rs 0.3 million & sales tax exemption for additional five years. vi. Subsidy for Quality Control Measures vii. Sales Tax Exemption: Total Sale Tax Exemption for all new industrial units for a period of seven years. viii. Stamp Duty Exemption: Exemption of 50% of Stamp Duty for securing loans from Banks/Financial Institutions including mortgage of fixed assets. ix. Price Preference (15%) and Exemption of Earnest Money on Govt. Store Purchase Programme Page | 24

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Potential Sectors

3.4. Food Processing

Nature has endowed the state richly in the form of rainfall and fertile soil, a salubrious climate and agro/forest resources are abundant. Nagalands rich horticultural resources have vast potential for value addition, which is done to a very limited extent at present. The state has a substantial area under the cultivation of pineapple, passion fruits, and other horticultural resources which offers immense potential for development of processing industries. Nagaland has two agro climatic zones; the sub tropical hill zone and mild tropical hill zone. The crop grown and the districts are listed in the table below:
Agroclimatic Zones Sub Tropical Hill Zone Mild Tropical Hill Zone Horticultural Crops Pineapple, Vegetables, Passion Fruit, Potato, Pear, maize Pineapple, Passion Fruit, Potato, Vegetables, Peach Districts/Areas Dimapur, Kohima, Mon, Longleng, Kiphire, Mokokchong, Tuensang, Kohima, Zunheboto, Peren

2.10.5. Marketing System and Channels Dimapur is the commercial hub of the state and a major market conglomeration of the agri and horti produces. The products find their way to Guwahati and other mainland Indian market directly through Dimapur as it is well connected by road and rail. Most of the aggregators and wholesale purchasers for the state are

located in Dimapur. The vegetable wholesale market of Dimapur is the busiest and the most crucial market for the entire state. The other terminal markets for the state are the Jorhat and Sibsagar markets that cater to Mon, Mokokchung, Longleng and Tuensang. The state still supplies huge quantity of ginger, maize, large cardamom, etc. to the neighbouring markets in Assam. Page | 25

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3.4.1. Nagaland Agri SEZ The government of Nagaland is setting up a special economic zone (SEZ), focusing primarily on Agro Food Processing, at Dimapur, the commercial hub of Nagaland. The SEZ will cover an area of 125 acres and will provide facilities like developed plots of land, external and internal roads, utilities like power, water, telecom infrastructure, waste management & sewerage and amenities like residential flats, health care facilities etc. Being located in Dimapur the SEZ will have access to raw materials and produces from Assam and other North Eastern states apart from the districts of Nagaland 3.4.2. Investment and Business Opportunities Opportunity exists in the state for setting up Processing facilities for Spices like Ginger and cardamom Processing facilities for Fruits like Passion fruit, Citrus and pineapple Medicinal and aromatic distillation and fractionalization industries. Bamboo shoot processing units. Potential also exists for setting up post harvestment

management, storage and logistics facilities like cold chain etc.

3.5. Urban Development

Nagaland has been witnessing rapid urbanisation in recent decades. From a total of 11 towns in 2001, the state now has 19 statutory towns and 6 census towns (Census towns are smaller towns having population of at least 5000). Among the urban centres of the state Dimapur has the highest urban population of 1,97,277, comprising of 34.8% of the total urban population of the state. Besides Dimapur the other two major urban centres of the state are Kohima, and Mokokchung. Biswajit Chakrabarty Page | 26

Given below is a brief summary of urban development in the state. Water supply: The water supply requirement of most towns in Nagaland is met through natural sources such as rivers, streams, springs and ground water reserves. While there is some supply by the Public Health Engineering Department in some of the towns, the remaining urban population have to meet their water requirements from the above mentioned sources or end up digging up wells and using community springs. Nagaland being a hilly state most of the water sources are not perennial and the urban population has to face hardships during the dry season. The state government has commissioned a number of studies to find a solution to the problem, however a suitable solution is yet to be found. Sewerage and Solid Waste Management: As of now, the Urban Centres of Nagaland do not have proper sewerage and solid waste management systems. Most towns do not have underground pipe or sewerage system and even where they exist there is lot of scope for improvement. Further, none of the towns have sewerage treatment plants. The urban areas in Nagaland also lack solid waste management and disposal systems. Road Network, and Transportation In most of the urban areas in Nagaland the roads are narrow with average carriageway available is 3 to 5.5m. Coupled with high vehicle density, this leads to traffic congestions. There is, therefore, need for carrying out traffic studies, redesigning the transport corridors and developing viable public transport systems. Urban Planning and Growth: The urban areas of Nagaland have over the years grown in a haphazard and unplanned manner in the absence of master plans and building bylaws. However a Comprehensive Development Plan for Kohima and the process of development of infrastructure investment strategy plan for all the other towns has been initiated. There remains substantial scope for carrying out planning exercises for the urban areas in Nagaland. Page | 27

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3.5.1. Opportunities Development of integrated Water Supply systems Development of Sewerage management systems Development of Solid Waste Management systems City and Town Planning

3.6. Information Technology

Nagaland has a sizeable English speaking population, a salubrious climate and a vibrant social structure making it ideally suited for IT and IT enabled industries. Realising this the Government of Nagaland has instituted a IT policy which aims at developing the State as a preferred IT destination by creating an enabling environment with appropriate policy intervention and peoples participation. The government is also taking active steps to use information technology for better governance and better delivery of services to the people. 3.6.1. Opportunities Back-end operations for IT enabled services E-Governance applications

3.7. Tourism
One of the smaller hill states of India, Nagaland is known for its myriad tribes with their rich culture and traditions. The State has a distinct character both in terms of its social composition as well as in its development history. Some of the advantages that Nagaland enjoys include comparatively unexplored destinations, scenic beauty, strong existence of local, community networks, abundant natural resources, unique eco-system and cultural diversity. The Government has declared tourism as a core industry under the State Industrial Policy. Nagaland provides great opportunities for Nature Based eco Tourism and Cultural tourism. Page | 28

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3.7.1. Nature / Eco Tourism Potential: Crisscrossed with swift flowing rivulets and rivers and surrounded by blue hills with lush greenery, the state is emerging as a viable destination for eco-tourism. The combination of ancient heritage, diverse ethnic people and their culture, along with nature's bounty, offers the tourists a unique experience. The major ecotourism activities possible in the state are, trekking, mountain climbing, and wild life. Some of the interesting places from eco tourism point of view are, Dzukou Khonoma Village. 3.7.2. Culture tourism: Nagaland has a rich ethnic diversity, languages, religions, climates and landscapes. The land is home to some 16 different tribes with distinct and fascinating cultures. More than 80% of the population lives in small, isolated villages and practise their own rituals and traditions which have been existing since centuries. Of particular importance is the Hornbill Festival held in the first week of December. The festival sees each tribal group construct a Morung (boys dormitory), where the values of life are traditionally imparted. 3.7.3. Business Opportunities: Setting up hotels and eco resorts Setting up amusement parks and Theme Parks Collaboration with local tour operators for inbound and outbound tourism valley, touphema tourist village, shiloi lake,

4. MEGHALAYA
Located in the hills of bordering Bangladesh, Meghalaya, is endowed with abundant rainfall, sun-shine, virgin forests, high plateaus, tumbling waterfalls, crystal clear rivers, meandering streamlets and above all with sturdy, intelligent and hospitable people. Page | 29

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It extends for about 300 kilometers in length and about 100 kilometers in breadth. It is bounded on the north by Goalpara, Kamrup and Nowgong

districts, on the east by Karbi Anglong and North Cachar Hills districts of Assam, and on the south and west by Bangladesh. The capital city of Shillong, popularly known as the Scotland of the East, is situated metres at an altitude of 1500 above which sea records level. the

Cherrapunjee, worlds

highest

average

annual

rainfall at 12000 millimetres is also located in the southern fringes of Meghalaya, bordering Bangladesh. About one third of the state is forested with luxuriant sub tropical forests. The forests of Meghalaya are notable for their biodiversity of mammals, birds, and plants. The climate of Khasi and Jaintia Hills is neither too warm in summer nor too cold in winter, but over the plains of Garo Hills, the climate is warm and humid, except in winter.

4.1. Demography
Meghalaya is the homeland of the Khasis, the Jaintias and the Garos. The Khasi, Jaintia, Bhoi & War, collectively known as the Hynniewtrep people predominantly inhabit the districts East of Meghalaya, also known to be one of the earliest ethnic groups of settlers in the Indian sub-continent, belonging to the Proto Austroloid Monkhmer race. The Garo Hills is predominantly inhabited by the Garos, belonging to the Bodo family of the TibetoBurman race, said to have migrated from Tibet. Meghalaya has a Page | 30

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liberalized state industrial policy with state subsidies offered on select sectors thus making the state conducive to investment. Table 3: Demographic Profile of the state
Background Characteristics
Geographic Area (in Sq. Kms) Total population (Census 2011) Population Urban Population Rural Population Female Population Male Decadal Growth Rate Population density (per sq km) Literacy rate Total Literacy rate Male Literacy rate Female 22429 2,964,007 595,036 (20.08%) 2,368,971 (79.9%) 1,471,339 1,492,668 27.8 % 132 75.5 % 77.2 % 73.8 %

Data

4.2. Economy and Industry

Meghalaya has abundant but mostly untapped natural resources, including coal, limestone, kaolin, feldspar, quartz, mica, gypsum, bauxite, and other minerals. Its sillimanite deposits (a source of highgrade ceramic clay) are reputedly some of the best in the world and account for almost all of India's sillimanite output. Availability of the mineral resources has spurred development of quite a few cement and fero-alloy plants.
Estimated Reserves of Minerals in Meghalaya Mineral Reserve in Million tons Coal 563 Limestone 4147 Kaolin 4.5 Clay 81 Sillimanite 0.05 Glass Sand 2.54 Iron 4 Fire Clay 12

The states economy however is still primarily agricultural in nature with majority of its rural population engaged in agricultural and allied activities.

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4.2.1. Industrial development in Meghalaya Meghalaya has been able to achieve a fair amount of industrialisation as compared to other north-eastern states with over 100 large and medium manufacturing units and 2653 (as of 2008) small industrial units. Mineral, horticulture, electronics, IT, export oriented units. Mineral, horticulture, electronics, IT, export oriented units and tourism have been identified as the thrust sectors for industrial development in the state. 4.2.2. Industrial Infrastructure To provide investors easy access to developed land along with other facilities the state government has created a number of, Industrial Estates and Areas a Export Promotion Industrial Park (EPIP) at Byrnihat and Growth, Centers. Some of the important industrial areas in the state are listed below: i. Barapani Industrial Area with an area spread of over 44 Hectares. ii. iii. Growth Centre at Mendipathar, in East Garo Hills District Industrial Estates in Shillong, Jowai, Mendipathar, Tura, Williamnagar and Nongstoin. iv. Export Promotion Industrial Park (EPIP) at Byrnihat with an area spread over 259.35 Hectares.

4.3. Policy and Incentives

Meghalaya Industrial Policy
The important incentives and benefits available under the state industrial policy are briefly summarised below. i. State Capital Investment Subsidy: 15% for small and micro units upto a limit of Rs.0.3 million (0.5 million for export oriented units). And 30% for large units upyo a limit of Rs. 2 millions. Page | 32

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ii. Training Subsidy: 50% of cost of training local tribal employees will be reimbursed. iii. Power Tarrif Subsidy : Upto 30% subsidy on power tariff for five years upto a limit of Rs.0.5 million per year. iv. Upto 99% remission of VAT payable for goods manufactured in Meghalaya

4.4. Agro - Food Processing

The potential for Agro-based industries in the state of Meghalaya is very high. The state produces substantial quantities of oranges, peaches, pineapples, pears, guavas, plums and bananas of superb variety. It also grows good quantities of potatoes, tapioca, bay leaves, ginger, maize and jackfruit. Meghalaya's turmeric,

particularly the variety that is grown in Shangpung in the Jaintia Hills, is considered the best in the world. Plantation crops like coffee, rubber, black pepper and areca nut are also grown in Meghalaya. A major breakthrough has also been made in tea cultivation and tea gardens have come up in various parts of the State. The state has two agro climatic zones. The crops and the areas of the two zones are listed in the table below:

Agroclimatic Zones Mild Tropical Hill zone Mild Tropical Plain Zone

Potential Horticultural Grown Crops Pineapple, Pear, Peach, Plum, Potato, Vegetables, Passion Fruit, Strawberry, Orange Pineapple, Orange, Potato, Vegetables

Districts/Areas Ri-Bhoi, East Khasi Hills, West Khasi Hills, Jaintia Hills, Part of Garo Hills Garo Hills, West Garo East Hills

4.4.1. Marketing System & Channels The agriculture market of transformation Meghalaya is undergoing good

towards commercialisation of the produces. Page | 33

Strawberry, flowers, etc. are grown commercially and sold through organised channels. There are three terminal markets in Assam

catering to the whole of Meghalaya state. The Guwahati terminal

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market caters to Khasi Hills while the Silchar and Goalpara cater to Jaintia and Garo Hills. 4.4.2. Opportunity for investment: There is ample scope for setting up a fruit and vegetable processing units. Bio-technology Based Units Tissue Culture and Orchid Unit: India accounts for 1300

species of orchids of which 150 are found in Meghalaya Opportunity for organized collection, packaging, marketing and export of fresh produce.

4.5. Urban Development

According to the 2011 census, 5,95,036 people live in urban areas, accounting for 20.07 per cent of the states total population of 29,64,007. The urban population in the state is mainly concentrated in the urban agglomeration of the capital city. Shillong and Tura together contribute 71.93% of the urban population. There are 22 urban centres in the state according to the 2011 census, compared to 16 centres in 2001. Both the central and the state governments over the years have implemented various schemes and

programmes for the urban development of the state. Some key projects being undertaken in the state are summarised below. Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), two projects worth US$ 47.4 million were approved in 2008-09 for developing urban infrastructure in Shillong; the aim is to provide better drainage and drinking water supply. Under the Environmental Improvement of Urban Slums (EIUS) programme, 45 notified and five slum areas in Shillong, Tura, Jowai, Baghmara, Williamnagar and Page | 34

Nongstoin have been provided with basic amenities. The New Shillong township is being developed based on the Shillong Master Plan, 1991-2011; the new township would cover an area of 2,030 hectares, of which 500 acres is Biswajit Chakrabarty

to be acquired and developed by the government. It may be mentioned that the State Government recently

approved the setting up of the New Shillong Township Development Agency (NSTDA) to explore the possibility of speeding up the land acquisition process. 4.5.1. Business Opportunities: Infrastructure development for Townships like New

ShillongTownship Urban Transport Systems Sewerage and drainage Drinking water supply

4.6. Tourism
Meghalaya with its hilly terrain and cool climate, demonstrates good potential for development of tourism. This hilly state has been called a patch of beauty and grace and is famed as 'the Scotland of the East'. It is linked to the Borail Range, an offshoot of the Himalayan Mountains. Meghalaya has an edge over other tourist centres in the Northeast as it has unique blend of different cultures, congenial climatic conditions and better infrastructures for setting up of tourism related activities. The capital of Meghalaya, Shillong is a very popular tourist destination. Situated at an altitude of 1,496 meters above sea level, Shillong is perhaps the only hill station with motorable roads leading to every corner. The tourists spots in Shillong include, Ward's lake, Lady hydari park, Polo ground, Mini zoo, Elephant falls, etc. Cherrapunjee, locally and officially known as Sohra, is 56 kms from Shillong, and a 'must see' destination for all tourists. Meghalaya has, over the years seen a steady rise in tourist inflows as seen from the table below. This could be further increased with focused marketing and investments in tourism infrastructure as the state, particularly Shillong has reached a position where demand for tourist accommodations etc exceeds supply. Page | 35

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Meghalaya tourist inflow (in lacs) 2009 5.91 0.045 5.955 2010 6.52 0.042 6.562 2010 6.67 0.048 6.718

Domestic Foreign Total

Some of the prospective areas for tourism development in the state are briefly summarised below: 4.6.1. Adventure and Sports Tourism: From caving to rafting, trekking and water sports Meghalaya offers a wide array of options for development of adventure sports. Meghalaya has more then 1000 caves of varying depths and lengths, the longest explored cave is the 22.2 Km long Krem

Laitprah//Um Im-Ladit located in Jaintia Hills. Of late the state has started attracting a good number of cavers from all over the world. If developed and properly marketed this could turn out to be one of the major attractions in the state. Golf Tourism: The eighteen hole golf course in Shillong is considered to be one of the best natural golf courses in the World and has been the venue of many championships for professionals and armatures. The golf course is equipped with a club house which has been designed to resemble an English Manor. Water Sports: Umiam Lake at a short distance from Shillong is a ideal location for developing water sports facilities, which could be a great attraction for Tourists. 4.6.2. Nature Based / Eco Tourism: The state is ideally suited for eco tourism activities with a number of destinations which are already well known and a number of others which can be further developed. Among the better Known destinations are Shillong Peak and surrounding areas, Umiam Lake, Cherapunji and Mawsynram. Some other locations that have Page | 36

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potential for eco tourism are Thadlaskein Lake in Jaintia Hills, Balpakram wild life scantuary in Garo Hills, apart from this a number of trekking routs exist all over the state. 4.6.3. Business Opportunities: Setting up hotels and eco resorts Setting up amusement parks and Theme Parks Collaboration with local tour operators, for inbound and outbound tourism.

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