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The Industrial scenario in India is getting congested. The only market left for industries and companies is North East India. With educated youth and natural abundant natural resources, the North East is the dreamland of the future.
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North East Industrial and
Investment Promotion
Policy, 2007
NEIIPP, 2007, Sikkim will also be included
the distinction between ‘thrust’ and ‘non-thrust’ industries made in
NEIP, 1997 will be discontinued from 1.4.2007.
Incentives on substantial expansion to be given for expansion not
less than 25% as against 33.5% mentioned in NEIP 1997
100% Excise Duty exemption will be continued, on finished
products made in the North Eastern Region, as was available under
NEIP, 1997
100% Income Tax exemption will continue under NEIIPP, 2007 as
was available under NEIP, 1997.
Capital Investment Subsidy will be enhanced from 15% of the
investment in plant and machinery to 30% and the limit for
automatic approval of subsidy at this rate will be Rs.1.5 crores per
unit, as against Rs.30 lakhs as was available under NEIP, 1997
Interest Subsidy will be made available @ 3% on
working capital loan under NEIIPP, 2007 as was
available under NEIP, 1997.
New industrial units as well as the existing units on
their substantial expansion will be eligible for
reimbursement of 100% insurance premium.
(xi) Incentives for Service/other Sector Industries
I. Service Sector
Incentives for Bio-technology industry
Incentives for Power Generating Industries
Statewise and Financial
Yearwise Investments
Investment in terms of Industrial Entrepreneur Memoranda (IEMs)
filed,Letters of Intent (LOIs) issued and Direct Industrial Licences
issued since November 2003.
Investment Areas
Tripura: the potential sectors are
pharmacy, power sector as cost per unit of power
is Re. 1/unit, natural gas and electric power.
Sikkim: agro based products, it is worlds leading
producer of cardumom, and it is very rich in metals
(copper, lead, zinc, coal, graphite and
limestone), handicraft industry, and leather
industry.
Nagaland: infrastructure sector, furniture. This
state is very rich in mineral and oil reserves. So
there is very huge opportunity in this sector.
Meghalaya: rich in the natural resources. Hugeopportunity incement, plywood, beverage, electronicsindustry.
Assam: Famous for Tea. Huge scope of textileindustry, cement production and silk industry.
Arunachal Pradesh: Hydel powerresources, timber industry, sericulture, oilindustry. Opportunity in automobile industry(CNG distribution).
Mizoram: Electronics and consumergoods, handloom industry, grain milling, gingerprocessing.
Two Faces of the Coin
STRENGTHS WEAKNESSES
Large natural resources and
potential for growth in the
agro-forestry and
horticultural sectors
Large mineral deposits
A vast bio-diversity hot
spot.
Vast water resources
Inadequate development of
basic infrastructure
Geographical isolation and
difficult terrain that reduces
mobility
Lack of capital formation
and proper enterprise-
climate
Slow technology spread
Continuation…
STRENGTHS WEAKNESSES
Proximity to one of world's
fastest-growing economies
A highly literate population.
Rich heritage of
handicrafts/handloom/tribal
artifacts
Strong community spirit
and traditional democratic
system of local self-
government
Absence of a supporting
market structure and
adequate institutional
finance structure
Low level of private sector
investment.
Lack of local agricultural
surplus
Insurgency problems
• Late start
Foreign Investment Dreamland
The gateway to the ASEAN countries.
Both land and water routes could be
made available to investors for export to
East and South East Asia.
Proximity to the SAARC countries
Central Grants to North-East
Inference
State governments have failed to
develop their own financial resources.
More dependent on the Central
government. very weak industrial
sectors and inflated service sectors
Slight reduction in amount of grants for
the year 1997, probably due to effects of
NEIP
What else can be done?
In short, North Eastern India's location
advantage and rich natural resources
provide a backdrop to it's development as a
base for foreign investors
Open up age old trade links of Assam: Build a
four-lane express way through the Stillwell Road
from Ledo to Mytkyina in Myanmar to link up with
Route No. 9 of Trans Asian Highway. In my
estimate only 205 Km of road needs to be built
through the Hukong Valley. It will punch the
insurgents and bring in prosperity and tourism
from prosperous ASEAN and PACIFIC RIM. Cost
$ 1 Bn
Construction up of a aerotropolis near
Doom Dooma, upper Assam. This could be
a refueling, resting and recreation stop for
long distance travelers. As of now, there is
no such place.. The aerotropolis will have
World Class recreation
hubs, education, accommodation, sports
facilities and a satellite IT hub to tap the IT
potential of the NE Region. cost $ 5 Bn
Dredging of the river Brahmaputra and itstributaries: On a rough estimate, some 1.5million hectares can be reclaimed if wedredge and drain the rivers. Canals will beavailable for cheap watertransport, irrigation, run of the river powerturbines to generate energy. NationalWaterways-II will be a reality and we canuse 1.5 Mn hectares of reclaimed land torehabilitate misplaced people from floodprone areas. Cost: $20 Bn