Meghalaya

MEGHALAYA
April 2010
MEGHALAYA April 2010
Investment climate of a state is determined by a mix of factors
• Skilled and cost-effective labour • Procedures for entry and exit of firms
• Labour market flexibility • Industrial regulation, labour regulation, other
• Labour relations government regulations
• Availability of raw materials and natural • Certainty about rules and regulations
resources • Security, law and order situation
Resources/Inputs Regulatory framework

Investment climate
of a state Physical and social
Incentives to industry
infrastructure
• Condition of physical infrastructure such as
• Tax incentives and exemptions power, water, roads, etc.
• Investment subsidies and other incentives • Information infrastructure such as
• Availability of finance at cost-effective terms telecom, IT, etc.
• Incentives for foreign direct investment (FDI) • Social infrastructure such as educational and
• Profitability of the industry medical facilities
2
Contents
 Advantage Meghalaya
 State economy and socio-economic profile
 Infrastructure status
 State policies and incentives
 Business opportunities
 Doing business in Meghalaya
3
ADVANTAGE MEGHALAYA
Meghalaya April 2010
Meghalaya – State profile

• Covering an area of 22,429 sq km, Meghalaya shares
its border with Assam in the North and Bangladesh
in the South.
• The state has seven administrative districts. Shillong

is Meghalaya’s capital city; Sohra, Tura
Jowai, Nongstoin,Wiliamnagar, Nongpoh and
Baghmara are the other key cities.
• Meghalaya is the wettest state in the country with

an average rainfall of 1,200 cm. It has numerous
rivers, the major ones
being, Manda, Damring, Janjiram, Ringge, Ganol, Sims
ang, Khri, Umtrew, Umiam, Umkhem, Kupli, Kynshi, U
miam Mawphlang and Umngot.
• Meghalaya has diverse soil types including red-

loamy, laterite, and red and yellow soils. They have
fine textures ranging from loam to silty-loam and
alluvial soils. These types of soils support a variety
of agricultural crops.
• English is the official language of Meghalaya.

Khasi, Pnar and Garo are the other principal
languages.
4
ADVANTAGE MEGHALAYA
Advantage Meghalaya … (1/2)
Institutional support
The state provides excellent institutional support through various central
and state government agencies viz., North East Council, Ministry of
Development of North Eastern Region and Meghalaya Industrial
Development Corporation.
Policy and fiscal incentives

The state offers a host of industrial incentives, apart from Central
Government incentives meant for investments in the Northeast region.
Agro-processing, horticulture, minerals, tourism, electronics and IT have
been identified as thrust sectors for development and promotion.
Rich natural resources

Meghalaya is endowed with abundant natural resources in terms of
flora, fauna, medicinal
plants, forests, coal, limestone, feldspar, quartz, sillimanite, granite, industr
ial clay and uranium. They offer significant avenues for investment.
5
ADVANTAGE MEGHALAYA
Advantage Meghalaya … (2/2)
Availability of skilled labour

Meghalaya has a literacy rate of 62.6 per cent. The state has a
strong higher-education infrastructure. Moreover, a majority of
the local population speaks and understands English.
Conducive agro-climatic conditions

The state has favourable agro-climatic conditions that supports
agriculture, horticulture and forestry; there is potential for
development in related areas.
Tourism destination of the Northeast

The Meghalayan community has a rich culture and is an attractive
tourist destination.
6
ADVANTAGE MEGHALAYA
Meghalaya in figures
Parameter Meghalaya All-states Source
Economy
GSDP as a percentage of all states’
0.2 100.0 CMIE, 2005-06, current prices
GSDP
Average GSDP growth rate (%) 10.9 7.5 CMIE, 1999-2000 to 2007-08
Per capita GSDP (US$) 751.3 998.1 CMIE, 2007-08
Physical infrastructure
Central Electricity Authority,
Installed power capacity (MW) 189.1 98,996.4
as of March 2009
Cellular Operators Association of
GSM cellular subscribers (No) 4,259,022* 367,328,179
India, as of November 2009
Broadband subscribers (No) 14,202* 4,981,976 As of October 2008
Ministry of Road Transport &
National highway length (km) 810 70,548
Highways, 2007-08
Airports (No) 2 133 Industry sources
Social indicators
Literacy rate (%) 62.6 64.8 Census of India, 2001
Central Bureau of Health Intelligence,
Birth rate (per 1,000 population) 24.4 23.1
2007
* Figures for the Northeastern region comprising Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura
7
ADVANTAGE MEGHALAYA
Key industries with policy thrust and factor advantages

Industry attractiveness matrix
High
Tourism
IT Hydro
Minerals
Policy thrust
Agriculture and
Food processing horticulture
Medium
Handloom
Sericulture
Bamboo
Low
Medium High
Factor advantage
*Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital
8
Contents
9
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Socio-economic snapshot of Meghalaya

Parameters Meghalaya
Capital Shillong
Geographical area (sq km) 22,429
Administrative districts (No) 7
Population density (persons per sq km) 131
Total population (million) 2.3
Male population (million) 1.2
Female population (million) 1.1
Population growth rate 1991-2001 (%) 30.65
Sex ratio (females per 1,000 males) 980
Literacy rate (%) 62.6
Male (%) 65.4
Female (%) 59.6
Source: Statistical Handbook, 2008-09
10
Meghalaya’s GSDP
• At current prices, the Gross State Meghalaya’s GSDP
Domestic Product (GSDP) of Meghalaya (US$ billion)
was about US$ 1.89 billion in 2007-08.
2007-08 1.89
2006-07 1.54
• The state’s GSDP grew at a CAGR of 10.9 2005-06 1.43
per cent between 1999-2000 and 2007-08.
2004-05 1.29
2003-04 1.15 CAGR
• Agriculture, tourism, mining, trade, constru 2002-03 0.99 10.9%
ction and manufacturing industries
2001-02 0.94
contributed to the GSDP growth.
2000-01 0.87
1999-00 0.83
0.00 0.50 1.00 1.50 2.00
Source: CMIE
11
Meghalaya’s NSDP
• At current prices, the net state domestic Meghalaya’s NSDP
product (NSDP) of Meghalaya was about US$ (US$ billion)
1.67 billion in 2007-08.
2007-08 1.67
2006-07 1.36
• Meghalaya’s NSDP grew at a CAGR of 10.6 2005-06 1.27
per cent between 1999-2000 and 2007-08.
2004-05 1.15
2003-04 1.03 CAGR
2002-03 0.89 10.6%
2001-02 0.85
2000-01 0.79
1999-00 0.74
0.00 0.50 1.00 1.50 2.00
Source: CMIE
12
Meghalaya’s economic performance is driven by the secondary

and tertiary sectors
• At a CAGR of 21.6 per cent, the secondary Percentage distribution of sectors
sector has been the fastest growing among the
three sectors from 1999-2000 to 2007-08.The 100
growth has been driven by CAGR
manufacturing, construction and electricity. 80
11.1%
63.8 61.5
60
• The tertiary sector, the largest contributor to
Meghalaya’s economy, grew at a CAGR of 11.1 40 2.1 21.6%
per cent between 1999-2000 and 2007-08; it 4.4
was driven by trade, tourism, real 20
31.8 36.4
estate, transport and communications. 8.7%
0
1999-00 2007-08
• The primary sector’s share in the GSDP has
been declining; it registered a CAGR of 8.7 per Primary Sector Secondary Sector
cent between 1999-2000 and 2007-08. Tertiary Sector
Source: CMIE
13
Per capita GSDP

• Meghalaya’s per capita GSDP in 2007-08 was Per capita GSDP
US$ 751.3.
800.0 751.3
• The per capita GSDP has increased at a 700.0

579.8
619.4
CAGR of 9.3 per cent between 1999-2000 600.0
479.7
533.2
and 2007-08. 500.0 416.1
369.1 377.2 399.0
(US$)
400.0
300.0
• The districts of East-Khasi Hills, West-Garo
200.0
Hills and Jainita Hills contribute to more than
100.0
70 per cent of the state’s GSDP.
0.0
• Trade, manufacturing, tourism, construction, tr

ansportation and agriculture have been the
key contributors to per capita GSDP.
Source: CMIE
14
Key industries in Meghalaya

• The natural resources, policy incentives and Key industries in Meghalaya
infrastructure in the state favour investments in the
tourism, hydroelectric power, manufacturing and Agriculture and food processing
mining sectors. Horticulture
Mining
• Agriculture and related industry, contributes 21 per Cement
cent to the state’s GSDP and employs more than 70
per cent of the population. Tourism
Hydroelectric power
• Mineral, horticulture, electronics, IT, export oriented Dairy and livestock
units and tourism have been identified as the thrust
Handloom and handicrafts
sectors for industrial development.
Steel processing
• As of March 2008, there were 116 large and medium
industrial undertakings and 2,653 small scale
manufacturing units in Meghalaya.
• The Industries Department of Meghalaya and its

constituent unit, Meghalaya Industrial Development
Corporation (MIDC), are jointly responsible for the
development of industrial infrastructure in the state.
15
Rice, potato, pineapple and banana are the key agricultural

products of Meghalaya
• In 2007-08, the state recorded an annual growth of Crop Annual production
1.4 per cent in agricultural income. (‘ooo tonnes)
Rice 203,485
• Citrus fruits, pineapple, banana, papaya, plum, peach Potato 167,030
and apricot are the major fruits grown in Meghalaya. Pineapple 93,625
Banana 71,695
• Turmeric, ginger, black pepper, bay leaves are the
Ginger 53,609
major spices cultivated in Meghalaya; the state is also
experimenting with tea cultivation in select areas. Citrus fruits 36,893
Jute* 35,499
• Around 9.8 per cent of the state is under cultivation; Maize 24,424
and additional 20.1per cent land is available for Tapioca 20,841
cultivation offering immense potential for Sweet potato 16,270
agricultural production.
Turmeric 10,508
• Meghalaya produced 97.8 million eggs and 74.4 Source: Meghalaya Statistical Handbook, 2008-09
million tonnes of milk in 2006-07.
16
Meghalaya’s exports trends

• In 2005-06, Meghalaya’s exported goods and Meghalaya’s exports
services worth US$ 47.7 million, accounting for
about 48 per cent of the total exports from the Export commodity Value
Northeast region. (US$ million)
Coal 37.50
• An export promotion industrial park (EPIP) has
been set up in Byrnihat over an area of 250 Limestone 2.70
acres to promote exports. Ginger 0.09
Crushed stone 0.07
• Meghalaya shares a 443-km border with Orange 0.05
Bangladesh and has eight land-custom stations Boulder stone 0.05
to aid exports.
Source: State Development Report, 2008-09, as of 2005-06
• The key commodities exported to Bangladesh
are coal, limestone, boulder stone, agricultural
produce, and raw hides and skins.
17
Sector-wise investments
• Over US$ 2.3 billion of investments have been Break up of investments by sector
made in ramping up Meghalaya’s
infrastructure, as of December 2008.
125.0
• Over 60 percent of the investments have been 538.8
made in the area of
power, especially, hydroelectric power
generation and distribution.
250.2
• Tourism, cement industry, mining, air transport
1452.5
and railways are also expected to receive
significant investments over the coming years.
Manufacturing Mining Electricity Services
Source: CMIE, as of 2008
18
Contents
19
INFRASTRUCTURE STATUS
Roads, railways and airports

• Meghalaya had a total road length of 8,371 km, with Road length
a road density of 36.4 km per100 sq km, as of Road type
(Km)
2007-08.
National Highways* 810
State Highways 1,137
• The state is well connected to its neighbouring
Northeastern states and other parts of India Major district roads 1,219
through four National Highways: NH-40, NH- Other district roads 5,205
44, NH-51 and NH-62.
Sources: Statistical Handbook, 2007-08, Ministry of
Road Transport & Highways
• The nearest railway station is in Guwahati, Assam. *As of 2007-08
Land acquisition is in progress for the construction
of two railway stations at Mendipathar and
Byrnihat.
• Meghalaya has two airports located in Umroi and

Balajek. The Umroi airport is fully
operational, while the Balajek airport is under
construction.
• Helicopter services are available from Guwahati to

Tura and Shillong.
Source: Maps of India

• The Meghalaya Transport Corporation provides bus
transport services across the state.
20
Power
• As of March 2009, Meghalaya had a total Installed state and private capacity
installed power capacity of 189.1 MW, all under (MW)
the Meghalaya Power Generation Corporation.
189.5
189.1 189.1 189.1 189.1
• Hydroelectric power constitutes 187 MW, the 189.0 188.8 188.8
balance being generated from diesel.
188.5
• Meghalaya has a assessed hydroelectric
potential of 3,000 MW of which only 187 MW 188.0
has been tapped. 187.6 187.6
187.5
• The per capita power consumption of 187.0

Meghalaya was 387.4 kWh as of 2007-08.
186.5
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
• As of 2008, 73 per cent of the villages had been
electrified in the state, and plans are underway
to electrify the whole state by 2012. Source: Central Electricity Authority
• In April 2010, the State Government restructured the Meghalaya State Electricity Board (MeSEB) to create
a holding company called Meghalaya Energy Corporation Limited (MECL) and its three subsidiaries:
Meghalaya Power Generation Corporation (MePGCL), Meghalaya Power Transmission Corporation Limited
(MePTCL) and Meghalaya Power Distribution Corporation (MePDCL).
21
Telecom infrastructure
• In 2007-08, Meghalaya had 118 telephone Telecom operators in Meghalaya
exchanges with 67,766 landline • Bharat Sanchal Nigam Limited (BSNL)
connections, 10,592* WLL connections and
89,665** mobile phone connections. • Bharti Airtel
• Aircel Limited
• As of 2007, there were 7,360 internet • Vodafone Essar
connections in the state including 1,621 working • IDEA Cellular
broadband connections.
• Reliance Communications
• Virtual private network (VPN) over broadband • Tata Indicom

line is also available in the state to enable
business communications. Source: State Development Report, 2008-09
• Meghalaya had 390 post offices as of

2007, providing postal services across the state.
*As of 2006-07
**Mobile connections pertain to BSNL only
22
Urban infrastructure … (1/2)

Water supply
• The average per capita supply of water in major cities and towns is 150-200 litres per day.
• Meghalaya has 16 urban agglomerations and about 71 per cent of the population in these is provided
with piped-water supply.
Sewerage
• Solid-waste segregation and disposal is diligently adhered to across the state.
• A 100 tonnes per day (TPD) compost plant in Shillong and 40 TPD plant in Tura are operational in the
public private partnership (PPP) mode for safe disposal of solid wastes.
• Sites have been identified in Williamnagar, Baghmara and Resubelpara and work has commenced on
developing compost plants.
23
Urban infrastructure … (2/2)

• 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 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 to be acquired and developed
by the government.
24
Education infrastructure
• According to the Census 2001, Meghalaya had a
Educational infrastructure (No)
literacy rate of 62.6 per cent as of March 2001;
male literacy rate was 65.4 per cent and female Universities 1
literacy rate was 59.6 per cent.
Colleges 56
• The North East Hill University (NEHU) provides
Polytechnics and ITI training institutes 8
Bachelors, Masters and Doctoral degrees in the
science, technology and humanities streams. Teacher training institutes 3
• The North East Indira Gandhi Regional Institute of High and higher secondary schools 774
Health and Medical Sciences (NEIGRIHMS)
conducts bachelor of medicine and post graduate Middle and senior basic schools 2,259
courses in medicine; a bachelors of nursing college
Primary and junior basic schools 6,351
also operates under its aegis.
Source: Statistical Handbook 2008-09, as of 2006
• The National Institute of Fashion Technology
(NIFT) conducts courses on fashion technology.
Pupil-teacher ratio of schools in Meghalaya
• The Indian Institute of Public Health, Indian Primary schools 34:1

Institute of Information Technology, industrial Secondary schools 24:1
training institutes (ITI), polytechnics are under
various stages of implementation in the PPP mode. High and higher secondary schools 25:1
Source: State Development Report 2008-09, as of 2005-06
25
Health infrastructure
• There are 10 private hospitals in the state with a total Health infrastructure
bed strength of 1,650 beds.
• Primary health centres: 104
• Sub-centres: 404
• The state’s four military and paramilitary hospitals • Community health centres: 28
provide preventive and promotional healthcare • Hospitals: 9
services. • Dispensaries: 12
• Leprosy colonies: 2
• NEIGRIHMS, which has been instituted to provide • Leprosy control units: 2
medical education, has a 500 bed super-specialty • Doctors: 671
hospital; expansion works are underway. • Nurses: 893
Source: Statistical Handbook of Meghalaya, 2008-09
Health indicators
Beds per 100,000 population# 137
Birth rate* 24.4
Death rate* 7.5
Infant mortality rate** 56
Sources: Statistical Handbook of Meghalaya, 2008-09

# State Development Report, 2008-09
*Per thousand persons, as of 2006-07
**Per thousand live births, as of 2006-07
26
Cultural infrastructure
• Shad Suk Mynsiem, Nongkrem dance, Wangala, Behdeinkhlam, Laho dance, Chad Sukra, Autumn
festival, Strawberry festival, Ranikor festival are the well-known festivals of Meghalaya.
• Meghalaya has varied tourist attractions such as caves, national parks and sanctuaries, sacred
groves, waterfalls, lakes and rivers – making it an ideal tourism destination.
• Meghalaya sports a 18-hole natural golf course, which is a major sport and corporate attraction.
• Bara bazar, Jail road, G.S. road, Police bazar, Glory’s plaza, Meghaloom, Nagaland Handloom and
Handicrafts, Assam Emporium, India Emporium, Khadi Gramodyog, Manipur Emporium,Tantuja, and
Purbashree are the key shopping areas in Meghalaya.
• Capt.Williamson Sangma State Museum, Don Bosco Centre for Indigenous Cultures, Entomological
Museum (Butterfly Museum) are the famous museums of Meghalaya depicting its rich cultural heritage.
• Lady Hydari park, Mattilang park, Sa-I-Mika park, Thangkharang park, Eco park in East Khasi hills; Nehru
park, Kharsati park, Thrills Fun park in Ri Bhoi; Nokrek National park in West Garo hills; Balpakram
National park in South Garo hills, Ialong park, Iooksi (Kupli) park in Jaintia hills are the popular national
parks and recreation centres in Meghalaya.
27
Industrial infrastructure
• Meghalaya has industrial estates at Shillong, Nongstoin, Mawlyndep, Tura, Williamnagar and Khliehtyrshi;
an industrial area at Umiam; an export promotion industrial park (EPIP) at Byrnihat; and a growth
centre at Mendipathar.
• District Industrial Centres (DIC) are functional under the MIDC in each district and are involved in
industrial infrastructure development of the district.
• The state has constituted a single-window clearance agency for industrial investment approvals.
• Techno-economic feasibility reports (TEFR) are available with the MIDC for poultry, agro-based
industry, fruit processing, paper-grade lime, alcohol from tapioca, calcium carbonate extraction, ceramic-
glazed tile manufacturing, marble and tile, and meat processing.
• Under the central government’s Assistance to states for Developing Infrastructure for Exports (ASIDE)
programme, 29 infrastructure development projects have been approved, worth US$ 21.4 million.
28
Contents
29
STATE POLICIES AND INCENTIVES
Sector-specific policies … (1/7)

North East Industrial and Investment Promotion Policy (NEIIPP), 2007
Aim: To promote the Northeast region as an attractive investment destination through various concessions and incentives.
Key features:
• Industries under this policy are eligible for incentives for a period of 10 years from the date of commencement of
commercial production.
• All units, new as well as the existing ones that undergo substantial expansion (minimum 25 per cent increase in fixed capital)
and start production before 2017, would qualify for the incentives.
• Incentives would be available for all existing industrial units and upcoming units anywhere in the Northeast.
• A high-level monitoring committee or advisory committee would oversee implementation of the NEIIPP.
• NEIIPP would not be applicable for peripheral activities such as preservation while storage, cleaning, packing, re-packing,
labelling or re-labelling, sorting, etc.
• North East Industrial Development Finance Corporation (NeDFI) will act as the nodal agency for disbursal of subsidies.
• NEIIPP 2007 has replaced the North East Industrial Policy1997.
Continued..
30

NEIIPP, 2007
Incentives and concessions:
• 100 per cent excise duty exemption on finished products made in the Northeast Region.
• 100 per cent income tax exemption for industrial units.
• Capital investment subsidy increased from 15 per cent to 30 per cent for plant and machinery up to US$ 360,000 per unit.
For units above US$ 360,000 of capital investment and up to US$ 7.5 million, an empowered committee approves. For units
above US$7.5 million the Union Cabinet approves.
• Interest subsidy to be given at the rate of 3 per cent on working capital.
• 100 per cent reimbursement of insurance premium.
31

Industrial Policy, 1997
Aim: To facilitate rapid and sustained industrial development of the state.
Key initiatives:
• Meghalaya to develop general infrastructure such as road, power, water and communication.
• The state government to invite private sector in undertaking joint projects.
• MIDC to act as a channelling agency for obtaining credit for industrial development.
• DICs to serve as principal contact and guiding agency for entrepreneurs and investors.
• State government to set up single-window clearance for large and medium industries.
• Agriculture, horticulture, bio-technology, animal husbandry and meat processing, minerals, electronics and IT have been
identified as thrust sectors.
32

Industrial Policy, 1997
• State capital investment subsidy provided at 30 per cent of the fixed capital, with a ceiling of US$ 43,000.
• Interest subsidy for bank loans at the rate of 4 per cent, with a ceiling of US$ 435 per month for a period of three years.
• Subsidy on power tariffs at the rates of 30 per cent and 25 per cent for loads up to 2 MW and above 2 MW, respectively.
• Cost of drawl of power-line above 33 kV is reimbursed if a separate line is required for the industry.
• Exemption from sales tax for a period of seven years from the date of commercial production.
• Refund of central sales tax paid on machinery and equipment up to the commissioning of the industry.
• Subsidy on cost incurred on quality control measures and pollution control measures.
• Exemption from stamp duty.
• Additional sales tax incentives, limited to the amount of capital subsidy.
• Additional 5 per cent capital investment subsidy for export oriented units.
33

The Meghalaya State Tourism Policy, 2007 (Draft)
Aim: To promote tourism as an economic driver of the state
Key thrust areas:
• Nature tourism, adventure and sports tourism, cultural tourism, health tourism, golf tourism, convention tourism and arts
and crafts tourism.
• Public private partnership (PPP) mode to be given preference for infrastructure development and service delivery.
• Training centres to be set up by the Government to provide training in hospitality and tourism industry.
• Single-window clearance to be set up in cognizance with the NEIPP 2007.
34

The Meghalaya State Tourism Policy, 2007 (Draft)
Aim: To promote tourism as an economic driver of the state
Key incentives and initiatives:
• Reimbursement of up to 30 per cent of realistic wage of local tribal employees, annually.
• Subsidy at the rate of 50 per cent for purchase and installation of power generation set, above 2 MW.
• 100 per cent refund of central sales tax (CST) on equipment and machinery installed as on the date of commissioning of the
unit.
• Stamp duty exemption up to 75 per cent on investments above US$ 434,782.
• Reimbursement of 25 per cent of the entertainment tax for theme parks and urban entertainment centres for a period of
five years
• Exemption from luxury tax for a period of five years.
• Reimbursement of 25 per cent of the value added tax (VAT) for five years from the commencement of operation.
35

IT Policy, 2004
Aim: To create wealth, generate employment and bring in IT-led economic growth.
Key initiatives:
• Facilitate creation of IT infrastructure, software technology park and last mile connectivity to villages.
• Facilitate the establishment of IT enabled service centres in the state.
• To develop the human resource base required for the IT industry.
• Apply IT in governance and management of the state government programmes.
• Earmark up to 5 per cent of the government’s budget for IT-related expenditure.

• Over and above the state incentives for industrial units, 10 per cent subsidy to be provided for IT industries in respect of
power captive generation set, capital subsidy and capital rent subsidy.
36
Contents
37
BUSINESS OPPORTUNITIES
Floriculture
• Meghalaya has a plant vascular diversity of 3,331; more than 300 varieties of orchids are found in the state.
• Decorative plants such as

dahlia, canna, gladiolus, begonia, tropaeolum, aster, polargonium, antirrhinum, crinum, celosia, kniphofia, impati
ens, chrysanthemum, petunias, pansy, calendula, sweet peas and salvia are found in abundance in the state.
• The existing industry is at a nascent stage and has the potential to be developed and promoted for export
oriented business.
Medicinal plants and bamboo

• Meghalaya houses 834 of the 6,000 medicinal plants available in India.
• This sector has been identified as one of the priority sectors for investment by the state.
• Around 120 species have been identified for commercial production.
• Meghalaya is one of the leading producers of bamboo in the country; bamboo enterprises could be developed
from the bamboo reserves and forest cultivations.
38
Agriculture, horticulture and food processing

• Meghalaya has a climate that supports agricultural and horticultural activities; the state offers potential for
investment in these areas.
• It supports multiple crops viz., rice, maize, pulses, oil seeds, cotton, jute, and mesta; Meghalaya produces
substantial quantities of oranges, peaches, pineapples, pears, guavas, plums, bananas, potatoes, tapioca, bay
leaves, ginger, maize and jackfruit.
• Meghalaya’s turmeric is considered one of the best in the world as it contains 7.5 per cent of curcumine.
Hydroelectric power
• It is estimated that Meghalaya has a hydroelectric power capacity of 3,000 MW, of which only 187 MW
has been developed so far.
• The state government is inviting investments in this area through the PPP mode. Independent power
producers (IPP) are also being invited to develop hydro projects in Meghalaya; this provides immense
potential for investment.
39
Tourism sector
• Meghalaya is richly endowed with flora, fauna, thick
forests, ancient forest groves, large rivers and grass
fields – making it an attractive tourism destination.
• The number of foreign tourists has increased by 24

per cent between 2006 and 2007. During the same
period, the domestic tourist population increased by
14 percent from 400,287 in 2006 to 457,685 in
2007.
• PPP is being invited by the Meghalaya government to

create tourist complexes, eco-tourism, adventure
tourism, ethnic culture tourism, health Source: Maps of India
farms, hotels, convention centres, tourist travel
services, etc.
IT sector
• The IT policy of Meghalaya defines the IT penetration plan for various industries and public sector
organisations.
• With a high literacy rate, affordable cost, substantial English-speaking population, improved
telecommunication connectivity and favourable climate, Meghalaya is well poised to serve the IT industry.
• The policy also provides various incentives and concessions for investments in IT sector.
40
Sericulture industry
• Mulberry, muga and eri cocoons are cultivated in Meghalaya.
• The state produced 295.3 million tonnes of eri, 269.1 million tonnes of muga and 19.9 million tonnes of
mulberry cocoon in 2005-06.
• Sericulture has predominantly remained a cottage industry and the government is taking proactive steps
in training the people, reaching out to the market and providing technical support.
Handloom and handicrafts

• Meghalaya has an established tradition of high-quality weaving, with more than 25,000 households engaged
in handloom weaving.
• There are eight production centres, 32 demonstration-cum-production centres, 10 weaving training

centres and a state-level handloom training institute (Mendipathar, East Garo Hills) in the state.
• With support from National Institute of Design and National Institute of Fashion Technology, the
handloom industry is being developed by the Meghalaya Government.
41
Minerals and mining

• Meghalaya has a rich mineral resource of 640 million tonnes of coal, 5,000 million tonnes of limestone, six
million tonnes of fire clay, 90 million tonnes of lithographic clay, 4.5 million tonnes of china clay, 5 million
tonnes of phosphate rocks, 0.045 million tonnes of sillimanite, 25 million cubic metres of granite, and
substantial reserves of quartz, feldspar, gypsum and uranium.
• The mining industry has just opened up in Meghalaya; most of the coal and stones are being exported to
Bangladesh.
• A number of cement factories are being either planned or being set up, owing to the rich mineral content
of the state.
Leather and allied industries

• Meghalaya had 39 leather-based industries in 2007-08; the state exported 57 million tonnes of raw hides
in 2006-07 to Bangladesh.
• Though Meghalayans use a lot of leather in their clothes and in domestic applications, tanning and
processing industry is not well developed, providing significant opportunity for the development of the
industry.
42
Major industrial projects being implemented

Investment
Promoter Project Location
(US$ million)
Infrastructure
Uranium Corporation of India Limited Uranium mining and processing 248.8 West Khasi Hills
Meghalaya Energy Corporation Limited Myntdu Leshka hydro-power project 154.7 Jainitia Hills
Meghalaya Energy Corporation Limited Umtru hydel power project 54.1 Ri-Bhoi
National Highways Authority of India Jorbat Shillong road up-gradation 133.3 Shillong
North Eastern Railway Azra-Byrnihat railway 118.8 Byrnihat
Manufacturing
Jai Balaji Shakti Cement Limited Cement project 155.0 Jainitia Hills
Nilanchaal Cement Private Limited Portland cement 113.0 Jainitia Hills
Goldstone Cements Limited Slag cement 97.8 Jainitia Hills
Jai Umadutt Cement Limited Cement project 47.8 East Khasi Hills
Kaziranga Cement Private Limited Cement project 39.6 East Khasi Hills
Source: projectstoday.com
43
Contents
44
DOING BUSINESS IN MEGHALAYA
Key approvals required

Approvals and clearances required Department
Incorporation of company Registrar of companies

Registration, Industrial Entrepreneurs Memorandum, industrial licenses
Permission for land use Industries Department of Meghalaya
Allotment of land
Site environmental approval
No objection certificate and consent under Water and Pollution Meghalaya Pollution Control Board
Control Act
Registration under States Sales Tax Act and Central and State Excise
Act Excise Department
Commercial taxes
Sanction of power
Power feasibility Meghalaya Energy Corporation Limited
Power connection
Approval for construction activity and building plan Public Works Department
Water and sewerage clearance
Public Health and Engineering Department
Water connection
45
Cost of doing business in Meghalaya

Cost parameter Cost estimate Source
Cost of land (per acre) US$ 50,000 to US$ 75,000 (Shillong) Property dealers
Hotel costs (per room per night) US$10 to US$ 35 State tourism website
Cost of office space (2,000 sq ft) US$ 75 to US$ 200 per month Property dealers
Cost of residential space

US$ 60 to US$ 100 per month Property dealers
(2,000 sq ft house)
Meghalaya Power Distribution

Power cost (per kWh) Commercial and industrial: US 5.8 cents
Corporation Limited
Unskilled: US$ 2.2 Labour Department, Government of

Labour cost (minimum daily wages)
Skilled: US$ 3.0 Meghalaya
46
Contact list
Key agency Contact information
Ministry of Development of North Eastern Region 258, 1st Floor, Vigyan Bhavan-Annexe
New Delhi - 110011
Phone: 91-11-2302 2401, 2302 2400
Fax: 91-11-2306 2754
Website: mdoner.gov.in
Industries Department of Meghalaya Director of Industries,
Administrative Building, Lower Lachumiere
Shillong - 793 001
East Khasi Hills District, Meghalaya
E-mail: industries-meg@nic.in
Meghalaya State Electricity Board Meghalaya Energy Corporation Limited
Lum Jingshai, Short Round Road
Shillong – 793001
Meghalaya
Phone: 91-364 2590610/ 2590742/ 2590710/ 2591843
Fax: 91-364-2590355
47
Annexure
Exchange rates
Year INR equivalent of one US$

2000 46.6
2001 48.3
2002 48.0
2003 45.6
2004 43.7
2005 45.2
2006 45.0
2007 42.0
2008 40.2
2009
46.0
Average rates for the year
48
DISCLAIMER
India Brand Equity Foundation (“IBEF”) engaged presentation to ensure that the information is accurate
ICRA Management Consulting Services Limited (IMaCS) to the best of IMaCS’s and IBEF’s knowledge and belief, the
to prepare this presentation and the same has been content is not to be construed in any manner whatsoever
prepared by IMaCS in consultation with IBEF. as a substitute for professional advice.
All rights reserved. All copyright in this presentation and IMaCS and IBEF neither recommend nor endorse any
related works is solely and exclusively owned by IBEF. The specific products or services that may have been
same may not be reproduced, wholly or in part in any mentioned in this presentation and nor do they assume
material form (including photocopying or storing it in any any liability or responsibility for the outcome of decisions
medium by electronic means and whether or not taken as a result of any reliance placed on this
transiently or incidentally to some other use of this presentation.
presentation), modified or in any manner communicated
to any third party except with the written approval of Neither IMaCS nor IBEF shall be liable for any direct or
IBEF. indirect damages that may arise due to any act or
omission on the part of the user due to any reliance
This presentation is for information purposes only. While placed or guidance taken from any portion of this
due care has been taken during the compilation of this presentation.
49

Meghalaya

Uploaded by

Copyright:

Available Formats

You might also like

Meghalaya

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Meghalaya

Uploaded by

Copyright:

Available Formats

MEGHALAYA

Investment climate of a state is determined by a mix of factors

Resources/Inputs Regulatory framework

 State economy and socio-economic profile

 State policies and incentives

 Doing business in Meghalaya

Meghalaya – State profile

• The state has seven administrative districts. Shillong

• Meghalaya is the wettest state in the country with

• Meghalaya has diverse soil types including red-

• English is the official language of Meghalaya.

Advantage Meghalaya … (1/2)

Policy and fiscal incentives

Rich natural resources

Advantage Meghalaya … (2/2)

Availability of skilled labour

Conducive agro-climatic conditions

Tourism destination of the Northeast

Key industries with policy thrust and factor advantages

 State economy and socio-economic profile

 State policies and incentives

 Doing business in Meghalaya

Socio-economic snapshot of Meghalaya

Source: Statistical Handbook, 2008-09

0.00 0.50 1.00 1.50 2.00

0.00 0.50 1.00 1.50 2.00

Meghalaya’s economic performance is driven by the secondary

Per capita GSDP

• The per capita GSDP has increased at a 700.0

• Trade, manufacturing, tourism, construction, tr

Key industries in Meghalaya

• The Industries Department of Meghalaya and its

Rice, potato, pineapple and banana are the key agricultural

Meghalaya’s exports trends

Manufacturing Mining Electricity Services

Source: CMIE, as of 2008

 State economy and socio-economic profile

 State policies and incentives

 Doing business in Meghalaya

Roads, railways and airports

• Meghalaya has two airports located in Umroi and

• Helicopter services are available from Guwahati to

Source: Maps of India

• The per capita power consumption of 187.0

• Virtual private network (VPN) over broadband • Tata Indicom

• Meghalaya had 390 post offices as of

Urban infrastructure … (1/2)

• Solid-waste segregation and disposal is diligently adhered to across the state.

Urban infrastructure … (2/2)

• The Indian Institute of Public Health, Indian Primary schools 34:1

Source: State Development Report 2008-09, as of 2005-06

Source: Statistical Handbook of Meghalaya, 2008-09

Sources: Statistical Handbook of Meghalaya, 2008-09

 State economy and socio-economic profile

 State policies and incentives

 Doing business in Meghalaya

Sector-specific policies … (1/7)

• NEIIPP 2007 has replaced the North East Industrial Policy1997.

Sector-specific policies … (2/7)