assam - ibef · assam is india‟s gateway to the northeast as well as to the neighbouring...

ASSAM November 2010

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

Investment climate of a state

Resources/Inputs

Incentives to industry Physical and social

infrastructure

Regulatory framework

• Skilled and cost-effective labour

• Labour market flexibility

• Labour relations

• Availability of raw materials and natural

resources

• Tax incentives and exemptions

• Investment subsidies and other incentives

• Availability of finance at cost-effective terms

• Incentives for foreign direct investment (FDI)

• Profitability of the industry

• Procedures for entry and exit of firms

• Industrial regulation, labour regulation, other

government regulations

• Certainty about rules and regulations

• Security, law and order situation

• Condition of physical infrastructure such as

power, water, roads, etc.

• Information infrastructure such as telecom, IT,

etc.

• Social infrastructure such as educational and

medical facilities

ASSAM November 2010

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Advantage Assam

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Assam

Contents

ASSAM November 2010

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Assam – State profile

• Covering an area of 78,438 sq km, Assam is located in the South of the Eastern Himalayas. Popularly known as the „land of the red river and blue hills‟, the state is a gateway to Northeast India.

• Assam has 27 administrative districts. Dispur is the state capital, while Guwahati is the largest city.

• Important rivers flowing through Assam include Barak, Bhoroli, Brahmaputra, Dhansiri, Dihing, Manas and Mora Dhansiri.

• Assam is known for its tea, petroleum resources, muga silk and bio-diversity.

• Assam is becoming an increasingly popular destination for wild-life tourism. Kaziranga and Manas are registered as world-heritage sites.

• Assamese and Bodo are the official languages. Bengali holds the official-language status in the three districts of the Barak Valley and is the second most spoken language of the state. Assam also has schools with English as the medium of education. Source: Maps of India

ADVANTAGE ASSAM

Assam November 2010

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Largest economy in the Northeast

Country’s gateway to the Northeast

Assam is India‟s gateway to the Northeast as well as

to the neighbouring countries of Myanmar, China,

Bangladesh, Nepal and Bhutan, providing a vital link

for trade with the Southeast Asian countries.

Advantage Assam … (1/2)

Assam is the largest economy of the Northeast

region. It is the most industrially advanced state in the

Northeast India, because of its comparative proximity

to the rest of the country and availability of

infrastructure.

Endowed with natural resources

Assam is rich in natural resources such as natural oil

and gas, rubber, tea, and minerals such as granite,

limestone and kaolin. Assam tea is a well recognised

product, the world over.

Source: Maps of India

ADVANTAGE ASSAM

Assam November 2010

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Sectors with investment potential

The state is rich in water resources. Other potential

areas of investment include power and energy, mineral-

based industries, tourism and crude oil refining.

Favoured tourist destination

With its pleasant climate and scenic landscape, Assam

is a popular tourist destination. The state offers visitors

a variety of choices from world heritage (leisure) sites

to temples and monuments.

Availability of skilled workforce Assam has numerous educational institutions. A

substantial portion of the city population, in the age

group of 15 to 25 years, is computer literate.


ADVANTAGE ASSAM

Advantage Assam … (2/2)

Assam November 2010

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Assam in figures … (1/2)

Parameter Assam All-states Source

Economy

GSDP as a percentage of all states‟

GSDP 1.8 100.0 CMIE, as of 2007-08, current prices

Average GSDP growth rate (%)* 10.0 11.8 CMIE, 2000-01 to 2007-08, current prices

Per capita GSDP (US$) 608.5 992.5 CMIE, as of 2007-08, current prices

Physical infrastructure

Installed power capacity (MW) 978.8 159,398.5 Central Electricity Authority, as of March

2010

GSM cellular subscribers (No) 9,159,252 456,586,162 Cellular Operators Association of India, as of

June 2010

Broadband subscribers (No) 31,456 4,981,976 As of October 2008

National highway length (km) 2,836 70,548 Ministry of Road Transport & Highways,

Annual Report 2008-09

Airports (No) 6 133 Airport Authority of India

ADVANTAGE ASSAM

* Calculated in Indian rupee terms

Assam November 2010

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Parameter Assam All-states Source

Social indicators

Literacy rate (%) 63.3 64.8 Census of India, 2001

Birth rate (per 1,000 population) 23.9 22.8 Ministry of Health and Family Welfare, RHS

Bulletin, March 2008

Ease of doing business

FDI inflows (US$ billion) 0.06# 120.2

Department of Industrial Policy and

Promotion,

April 2000 to May 2010

Outstanding investments (US$

billion) 11.4 1,972.60 CMIE, as of March 2010

# FDI inflows for Reserve Bank of India (RBI)-designated Guwahati region, which includes Assam, Arunachal Pradesh, Manipur, Meghalaya,

Mizoram, Nagaland and Tripura.

ADVANTAGE ASSAM

Assam in figures … (2/2)

Assam November 2010

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Key industries with policy thrust and factor advantages

Medium High Low

Medium

High

Industry attractiveness matrix

Sericulture

Food

processing

Tourism

Tea

*Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital

Limestone and

cement

Agriculture and

horticulture

Traditional

cottage

industry

Coal, oil,

energy

IT

Bamboo

ADVANTAGE ASSAM

Polic

y th

rust

Factor advantage

Assam November 2010

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Advantage Assam






Contents

ASSAM November 2010

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Socio-economic snapshot of Assam

Parameters Assam

Capital Dispur

Geographical area (sq km) 78,438

Administrative districts (No) 27

Population density (persons per sq km) 340

Total population (million)* 26.7

Male population (million) 13.8

Female population (million) 12.9

Population growth rate 1991-2001 (%) 18.9

Sex ratio (females per 1,000 males)* 935

Literacy rate (%)* 63.3

Male (%) 71.3

Female (%) 54.6

Source: Economic Survey of Assam, 2007-08, Directorate of Economics and Statistics

*Census 2001

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

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Assam‟s GSDP

• At current prices, the Gross State Domestic Product (GSDP) of Assam was US$ 18.6 billion in 2009-2010.

• The average annual GSDP growth rate was 9.5 per cent from 1999-2000 to 2009-2010.

Assam‟s GSDP

(US$ billion)

Source: CMIE


7.5

7.6

8.0

9.5

10.8

11.6

12.8

15.3

17.8

17.2

18.6

0.0 5.0 10.0 15.0 20.0

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

CAGR 9.5%

US$ billion

Assam November 2010

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Assam‟s NSDP

• The Net State Domestic Product (NSDP) of Assam was US$ 16.6 billion in 2009-2010.

• The average annual NSDP growth rate was 9.2 per cent from 1999-2000 to 2009-2010.

Assam‟s NSDP

(US$ billion)

Source: CMIE


6.9

7.0

7.3

8.6

9.8

10.5

11.6

13.9

16.0

15.5

16.6

0.0 5.0 10.0 15.0 20.0

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

CAGR 9.2%

US$ billion

Assam November 2010

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The tertiary sector has an increasing share in Assam‟s economy

• In 2009-2010, the tertiary sector contributed 49.7 per cent to the state‟s GSDP at current prices, followed by primary sector (34.1 per cent).

• The share of the secondary sector in GSDP was 16.1 per cent in 2009-2010 vis-à-vis 12.8 per cent in 1999-2000; the growth is driven by registered and un-registered manufacturing.

• The mining and quarrying sector registered the highest growth of 16.8 per cent between 1999-2000 and 2009-2010.

Percentage distribution of GSDP

Source: CMIE


40.7 34.1

12.8 16.1

46.5 49.7

1999-00 2009-10

Primary Sector Secondary Sector Tertiary Sector

8.7%

13.8%

11.7%

CAGR

Assam November 2010

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Per capita GSDP

• In 2009-2010, the state‟s per capita GSDP was US$ 618.2.

• The per capita GSDP increased at a CAGR of 8.0 per cent between 1999-2000 and 2009-2010.

Source: CMIE

Per capita GSDP

(US

$)


286.8 289.1 296.8 348.5

390.5 413.4 450.7

530.9

608.5 581.0

618.2

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Assam November 2010

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39.6%

7.1% 5.2% 4.2%

46.7%

4.0% 2.6% 2.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Food Education Medical Durable goodsAll-India Assam

Consumer expenditure on household goods and services

Source: Household Consumer Expenditure in India, 2007-08 NSS 64th Round

Share of average monthly per capita expenditure on

household goods and other services

• Assam is ahead compared to all-India in share of per capita expenditure on food.


52.3%

3.7% 6.3%

3.6%

59.9%

2.7% 3.1% 2.7% 0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Food Education Medical Durable goods

All-India Assam

Urban Rural

Assam November 2010

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Socio-economic profile of key cities

• Dispur, Guwahati, Tezpur, Dibrugarh, Jorhat and Silchar are some of the key cities in Assam.

• Guwahati is the largest city in the Northeast. It is a major commercial and educational centre of the region. The city is also a major regional centre for culture and sports activities, and for administrative and political activities of Assam.

• The town of Silchar is the second-largest by area and has significant commercial importance. Silchar is a trade and processing centre for tea, rice and other agricultural products.

• Dibrugarh, known as the „tea city of India‟, is the third-largest town in Assam. Oil and timber are the other big industries in and around Dibrugarh.

• Jorhat is known as the "cultural capital of Assam". A tea research centre has been established at Chinnamara, 5 km from Jorhat.

Guwahati

• Largest city in the Northeast.

• Area of 216 sq km and population of 800,000.

• Home to world-class educational institutions

such as the Indian Institute of Technology

Guwahati.

• Major centre for cultural and sports activities in

Assam.


Assam November 2010

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Key industries in Assam

Key industries in Assam

• Tea

• Coal, oil and gas

• Limestone and cement

• Agriculture and horticulture

• Food processing

• Tourism

• Traditional cottage industry

• Sericulture

• Assam produces around 51 per cent of the tea produced in India and about one-sixth of the tea produced in the world.

• As of September 2009, there were 29,604 registered small scale industrial (SSI) units in the state with an investment of US$ 245 million in plant and machinery.

• Assam is traditionally famous for its cottage industry, especially, spinning, weaving and sericulture. The state contributes 99 per cent and 65 per cent to the country‟s total muga and eri raw-silk production, respectively. An estimated 190,000 families are engaged in sericulture.

• Bell-metal work is another traditional cottage industry of Assam. Brass-work is also an important traditional handicraft. In 2008, the total annual production of marketable finished goods was about 300 tonnes.

• The state has a variety of tourist attractions such as wildlife sanctuaries, adventure tourism, eco-tourism, hill stations, lakes and places of historical significance. There are five national parks and 15 wildlife sanctuaries in Assam.

Key industries in major districts

District Industries

Barpeta Metal, oil and natural gas

Bongaigaon Textiles, oil and natural gas

Dibrugarh Petroleum and natural gas

Jorhat Tea and food products

Karimganj Cement

North Cachar Hills Cement

Sivasagar Oil and natural gas

Tinsukia Tea, oil and natural gas

Source: assamgovt.nic.in


Assam November 2010

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Rice, sugarcane, potato, tea and coconut are the key agricultural

products

Crop

Annual production as of

2008-09

(„ooo tonnes)

Rice* 3,432.0

Sugarcane 897.0

Potato 669.2

Tea* 480.0

Coconut 93.6

Rape seed and mustard

seed 137.0

Wheat 74.0

Onion 32.9

Natural rubber 3.0

• Rice, sugarcane, potato, tea and coconut are the top five crops in the state. These crops, together, accounted for over 95 per cent of the total crop production of the state in 2007-08. The total production was over 5.1 million tonnes.

• Assam's biggest contribution to the world is tea. Assam also accounts for a significant share of India‟s production of rice, rape seed, mustard seed, jute, potato, sweet potato, banana, papaya, areca nut and turmeric. It is also home to large varieties of citrus fruits, vegetables, herbs, spices, etc.

• Around 70 per cent of the workforce in Assam is employed in agriculture related activities.

*As of 2007-08

Source: CMIE


Assam November 2010

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Assam‟s exports trends

• Assam‟s exports increased at a CAGR of about 15.9 per cent between 2001-02 and 2008-09.

• In 2008-09, the state‟s major exports were chemicals, wood products and tea.

• According to Tea Board of India (TBI), Assam exported about 200 million kg of tea in 2008-09.

• TBI has proposed to introduce an exclusive Assam logo in line with the Bureau of Indian Standards (ISI) mark to ensure the quality of Assam crush, tear and curve (CTC) tea being exported.

• The Assam logo has been proposed to be introduced to put in place stringent quality mechanism system for the export market where Assam tea is facing stiff competion from those produced in Kenya and Sri Lanka.


Assam November 2010

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• According to the Reserve Bank of India, FDI inflows from April 2000 to May 2010 amounted to US$ 64 million*.

• As of March 2010, outstanding investment in the state was US$ 11.4 billion.

• Services accounted for over 35 per cent of the of the state‟s total outstanding investment followed by chemicals.

Investments and FDI inflows

Break-up of investments by sector

*FDI inflows for RBI‟s Guwahati-region which includes Assam,

Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and

Tripura.


Others include food & beverages, textiles, metals & metal products,

machinery and construction

Source: CMIE

As of March 2010

35.8%

27.3%

21.8%

7.9%

3.4% 2.9%

0.9% Services

Chemicals

Electricity

Mining

Non-metallicmineralsIrrigation

Others

Assam November 2010

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Advantage Assam






Contents

ASSAM November 2010

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Road network

• Assam has a total road length of about 41,347 km (covering both metalled and non-metalled surfaces), accounting for around 60 per cent of the total road length in the Northeast.

• The major towns in the state are connected by National Highways that cover 2,836 km.

• The Assam State Transport Corporation (ASTC) provides state road transport services since its establishment in 1970.

• Dispur has received US$ 2 million assistance from the World Bank for project preparation of a US$ 200 million state roads project for the improvement of Assam‟s highways and major district roads.

Road type Road length (km)

Total road length 41,347

National Highways 2,836

State Highways 2,719

Major district roads 4,154

Rural roads 31,638

Sources: Economic Survey of Assam, 2007-08, Ministry of Road

Transport & Highways, 2008-09


INFRASTRUCTURE STATUS

Assam November 2010

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Inland waterways

• Assam‟s major river routes are the Brahmaputra and the Barak rivers, with a combined navigable length of around 1,000 km.

• Seven port locations are operational in the state for import and export to the Kolkata and Haldia ports.

• The river Brahmaputra is known as the National Waterway No 2 (The Ganges is known as the National Waterway No 1).

• The Directorate of Inland Water Transport of Assam operates water transport services on the rivers Brahmaputra and Barak on commercial basis. These services are used for the transportation of passengers and goods across the state and to West Bengal. In 2008, the cargo handling capacity of the fleet was nearly 10,000 metric tonnes.

• Container Corporation of India Limited (CONCOR) operates an inland container depot (ICD) at Amingaon, 10 km from Guwahati. Two bonded warehouses of CONCOR along with a private warehouse (total area of 6,400 sq m) operate from the ICD.

Source: Directorate of Inland Water Transport of Assam


Assam November 2010

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Airports

International airport

Domestic airport

• Assam has an international airport at Guwahati known as Lokpriya Gopinath Bordoloi International Airport.

• The Airport Authority of India plans to make this as one of the major international airports of India, connecting Southeast Asia with India. The airport has undergone an overhaul, which includes both cosmetic and operational changes, including A380 ready runway and jet ways in the terminal.

• The state also has six domestic airports, at Guwahati, Tezpur, Jorhat, Dibrugarh, Silchar and North Lakhimpur.

Guwahati

Silchar

Jorhat

Lakhimpur

Tezpur

Dibrugarh


Assam November 2010

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Railway network

• In 2009, Assam had a total rail length

of approximately 2,435.1 km.

• The headquarters of the North-East Frontier Railways is located at Maligaon, on the outskirts of Guwahati.

• Within the state, all the major towns such as Dibrugarh, Tinsukia, Jorhat, Nagaon, Guwahati, Tezpur, Barpeta, Bongaigaon are well connected by the railway network.

• Guwahati is connected to Dibrugarh through a broad-gauge line connection whereas a metre-guage line connects the city with Haflong and Silchar.



Assam November 2010

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Power … (1/2)

Installed power capacity

(MW)

Source: Central Electricity Authority

• As of March 2010, Assam had a total installed power generation capacity of 978.8 MW, which comprised 507.5 under central utilities, 446.8 MW under state utilities, and 24.5 MW under the private sector.

• The capacity owned by state utilities comprised about 53 per cent of gas-based power plants, 13 per cent of coal-based power plants, 22 per cent of hydro electric power plants and 12 per cent of thermal-based power plants. The private sector controlled capacity was all of gas-based power plants.

• The Asian Development Bank (ADB) has sanctioned US$ 200 million under the Assam Power Sector Enhancement Investment Programme. Besides, ADB will provide a grant of US$ 1 million for capacity development of the power-sector utilities in the state.


1,132.9 1,230.8

955.3 980.3 978.8

-

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

2005-06 2006-07 2007-08 2008-09 2009-10

Assam November 2010

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Successor companies of ASEB

Assam Power Generation Corporation Limited

Assam Electricity Grid Corporation Limited

Upper Assam Electricity Distribution Co Limited

Lower Assam Electricity Distribution Co Limited

Central Assam Electricity Distribution Co Limited

• Assam‟s power is generated by Assam State Electricity Board (ASEB) and its successor companies.

Project Date of

commissioning

1x 37.2 MW Lakwa waste-

heat recovery project

July 2010

2x100 MW Namrup

replacement power project

January 2012


Power … (2/2)

• Ongoing power projects to be commissioned by Assam Power Generation Corporation Limited

Assam November 2010

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Telecom

• As of June 2010, Assam had a tele-density of 31 per cent.

• As of March 2010, Assam had 8.8 million wireless subscribers and 308,339 wire-line subscribers.

• The state also had 9.2 million cellular subscribers and 75,625 Internet/broadband subscribers, as of June 2010.

• As of 2009, the state had 269 telephone exchanges.

Telecom infrastructure (2009)

GSM cellular subscribers: 9,159,252*

Internet/broadband subscribers: 75,625*

Post offices: 71

Telephone exchanges: 269

Wireless subscribers: 8,756,053**

Wire-line subscribers: 308,339**

Telecom operators in Assam

• Reliance Telecom

• BSNL

• Bharti Airtel

• Dishnet Wireless

• Vodafone Essar

• IDEA Cellular

Sources: Cellular Operators Association of India, Ministry of

Communications & Information Technology, Telecom Regulatory

Authority of India

*As of June 2010

**As of March 2010


Assam November 2010

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• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), three projects costing US$ 95 million have been sanctioned for Guwahati.

• The projects have been sanctioned for completion between 2007-08 and 2009-2010. The target areas of development are solid waste management, water supply, and storm water drainage.

• Japan Bank for International Cooperation (JBIC) has provided US$ 21 million for developing infrastructure for uninterrupted water supply to Guwahati. West Guwahati, comprising of areas such as Santipur, Maligaon, Pandu and Jalukbari has so far been covered under this programme.

Urban infrastructure


Assam November 2010

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Literacy rates (%)

Literacy rate 63.3

Male literacy 71.3

Female literacy 54.6

• As per Census 2001, the literacy rate of the state was 63.3 per cent.

• The male literacy rate was 71.3 per cent and the female literacy rate was 54.6 per cent.

• The pupil-teacher ratio for primary is 26, 18 for upper primary and 19 for secondary.

• In 2007-08, the state had 44,500 primary schools, of which 30,000 were lower primary schools and 14,500 were upper primary schools.

Assam‟s school education statistics as of 2008-09

Number of schools Lower primary*: 30,000

Upper primary*: 14,500

Pupil-teacher ratio

Primary: 26

Upper primary: 18

Secondary:* 19

Gross enrolment ratio (%) Primary: 133.5

Upper primary*: 49.7

Education sector … (1/2)

Sources: Economic Survey of Assam, 2007-08, Department of

Education and School Literacy Flash Statistics, 2008-09

*As of 2007-08

Source: Census 2001


Assam November 2010

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Educational infrastructure as of 2008

• Universities: 5

• Engineering colleges: 3

• Law colleges: 22

• Medical colleges*: 13

• Arts, science and commerce colleges: 375

• Polytechnic institutions: 9

• Industrial training institutes: 23

Premier institutions in Assam

• Gauhati University, Guwahati

• Assam University, Silchar

• The Assam Agricultural University, Jorhat

• Dibrugarh University, Dibrugarh

• Tezpur University, Tezpur

• Assam Engineering College, Guwahati

• Indian Institute of Technology, Guwahati

• Jorhat Engineering College, Jorhat

• Regional Engineering College, Silchar

• Assam Medical College, Dibrugarh

• Gauhati Medical College and Hospital, Guwahati

• Silchar Medical College and Hospital, Silchar

Source: North Eastern Development Finance Corporation Ltd

(NeDFI)

* Including homeopathy, ayurveda, dentistry, pharmacy and nursing

• Assam has five universities, three engineering colleges,22 law colleges, 13 medical colleges, 375 arts, science and commerce colleges, 9 polytechnic institutions and 23 industrial training institutes (ITI).

• The State Government is taking several steps to encourage setting up of various educational complexes for skill development. The State Government has formed a steering committee and 27 institute management committees, to facilitate close coordination between industry and academia.


Education sector … (2/2)

Assam November 2010

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Health infrastructure

Health infrastructure

• Hospitals: 23*

• Primary health centres: 610

• Dispensaries: 331

• Sub-centres: 5,109

• Community health centres: 102*

Health indicators (2008)

Birth rate (per 1,000 population) 23.9

Death rate (per 1,000 persons) 8.6

Infant mortality rate (per 1,000 live births) 64.0

Source: Ministry of Health and Family Welfare,

Sample Registration System 2008

• In 2008, the health infrastructure of the state comprised of 22 hospitals, 610 primary health centres, 331 dispensaries, 5,109 sub-centres and 102 community health centres.

• The Assam Government has announced a series of health packages, including a US$ 30 million scheme to do away with the traditional gender-bias by offering financial assistance to the girl child and radical measures to improve the health of would-be mothers.

• The Assam Health Department has launched an emergency helpline „104‟ in January 2010 to provide instant help to patients and their families.

Key health schemes launched by the Assam Government

„Majoni‟ (Assamese for little girls)

• A new-born girl child gets a fixed deposit instrument

worth US$ 100.

• A would-be mother gets US$ 20 to US$ 10 for each of

the first two check-ups.

„Maram‟ (Assamese for compassion)

• Patients in medical college hospitals receive US$ 2 per

day.

• Patients in district hospitals get US$ 1.5 per day.

Sources: NeDFI, National Rural Health Mission

*As of 2009


Assam November 2010

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Cultural infrastructure

• Assam is home to many ethnic groups and different cultures. The state is rich in folk music; different styles include regional folk music, ethnic folk music and bihu songs, among others.

• Assam has a rich tradition of performing arts. Ankiya Nat (Onkeeya Naat) is a traditional dance-drama (bhaona) form, popular since the 15th century A.D. The Bihu dance, Kushan Nritya, Sattriya and Banjar Kekan are some of the popular dance forms of Assam.

• Guwahati is the major centre for sporting facilities. The sports infrastructure available in the city includes the Nehru Stadium and the Kanaklata Indoor Stadium.

• Additional sports infrastructure has been constructed in the city, specially for the 33rd National Games. This includes a large stadium at Sarusajai-the Indira Gandhi Athletic Stadium, the Dr Zakir Hussain Aquatic Complex, and the Karmabir Nabin Chandra Bordoloi A.C. Indoor Hall.

• Other new sports structures in the city include the Maulana Md. Tayabullah Hockey Stadium, the Deshbhakta Tarun Ram Phookan Indoor Stadium, the Rajib Gandhi Indoor Stadium in Amingaon and the Chachal Tennis Complex.


Assam November 2010

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Industrial infrastructure … (1/2)

Infrastructure Description

Software technology park A software technology park has been set up at Guwahati, near the Lokpriya Gopinath

Bordoloi International Airport, by the Software Technology Parks of India Limited (STPI).

Food processing park

The Government of India has sanctioned a food processing park with a total project cost of

US$ 1.3 million. The park is being set up near Chaygaon in the district of Kamrup (rural).

The implementing agency is Assam Small Industries Development Corporation Limited.

Agri-export zone for ginger

The Government of India has sanctioned an agri-export zone for the state, for fresh and

processed ginger. The nodal agency for implementing this project is Assam Industrial

Development Corporation Limited.

Biotech park

Considering the importance of biotechnology, an integrated park to provide all

infrastructural and other related services, is being developed in Guwahati. The Guwahati

Biotech Park would also undertake research activities in the area of biotechnology.


Assam November 2010

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Infrastructure Description

Export promotion industrial

park

Assam Industrial Development Corporation (AIDC) has implemented an export promotion

industrial park (EPIP) at Amingaon, near Guwahati in the district of Kamrup, at an estimated

cost of US$ 3.2 million. The total area of the park is 68.1 acres. AIDC has constructed three

industrial sheds and allotted them to three industrial units. In 2008, there were 37 companies

and firms in the park, of which 17 were engaged in manufacturing activities.

Industrial growth centres

Industrial growth centres with supporting infrastructure have been set up at Balipara in the

Sonitpur district and Matia in Goalpara. The Matia industrial growth centre has been set up with

a total project cost of US$ 4.8 million and spans across an area of 700 acres. The Balipura

industrial growth centre has been set up with a total project cost of US$ 5.4 million and is

spread across an area of 400 acres.

Integrated infrastructure

development (IID) centres

IID centres have been set up at Balipara, Matia, Chaygaon, Dalgaon, Demow, Bhomoraguri,

Malinibeel, Dahudi, Silapathar, Rangiya, Banderdewa and Titabor.

Border trade centres (BTC) BTCs are located at Mankachar (Dhubri), Sutarkandi (Karimganj) and Darranga (Kamrup).

As of 2008, around 144 units have started operating in the industrial growth centres, IIDs and EPIP with a

total investment of US$ 4.3 billion, offering direct employment to 7,063 persons and indirect employment

to 22,670 persons.


Industrial infrastructure … (2/2)

Source: AIDC

Assam November 2010

37

Major investments in the infrastructure sector

• As of March 2010, over US$ 5.3 billion of investments have been made towards ramping up Assam‟s infrastructure.

• About 38 per cent of the investments made in infrastructure have been in the area of railways.

• Roads and power (both generation and distribution) are the other key infrastructure sectors, attracting investments.

Source: CMIE, as of March 2010

*Generation and distribution


Infrastructure type Investments

(US$ million)

Railways 1,998.3

Roads 1,252.9

Power* 1,084.8

Crude oil and natural

gas 899.7

Airport 3.9

Assam November 2010

38

Advantage Assam






Contents

ASSAM November 2010

39

Industrial Policy of Assam, 2008-13

Aim: To generate economic development by accelerating the process of industrialisation in the state.

Key initiatives:

• To generate employment and increase income by encouraging the establishment of micro-enterprises.

• To increase the share of industrial sector in the state domestic product.

• To make agro- and rural area-linked industrial investment as a focused programme.

• To encourage youth of the state, particularly, women entrepreneurs to set up industries.

• To encourage exports and attract FDI, particularly, from non-resident Indians (NRI).

Sector-specific policies … (1/12)

STATE POLICIES AND INCENTIVES

Assam November 2010

40


Incentives and concessions:

Fiscal incentives:

• Annual interest subsidy to micro-industrial units, at 30 per cent of the amount of interest paid on term loan to banks or financial

institutions, for a period of five years from the date of commercial production, subject to a ceiling of US$ 2,000 per unit.

• Power subsidy for a period of five years to the eligible units, on power tariff paid on actual electricity consumed.

• Subject to a ceiling of US$ 2,000 per year, 50 per cent subsidy to the eligible units on fees payable for obtaining quality

certifications such as Bureau of Indian Standards (BIS), International Organisation for Standardisation (ISO), Food Products

Order (FPO), Agricultural Marketing (AGMARK) and for obtaining technical know-how from recognised research laboratory or

institutions such as Central Food Technological Research Institute (CFTRI) and Central Institute of Plastics Engineering &

Technology (CIPET).

• Subject to a ceiling of US$ 210,000 per unit, 25 per cent subsidy to micro- and small-industrial units for the cost payable to state

power distribution company for drawing the power-line to the premises of the unit, including the cost of transformer. This

subsidy shall be available only once to an industrial unit.

Connected load Subsidy rate (%) Annual subsidy ceiling

Up to 1.0 MW 30 US$ 210,000

Above 1.0 MW 25 US$ 50,000



Assam November 2010

41


Incentives and concessions

Tax incentives:

• All eligible units, which manufacture goods in Assam, will be entitled to exemption of 99 per cent of the tax payable under the Assam Value Added Tax (VAT) Act, 2003, and the Central Sales Tax Act, 1956, subject to the limits mentioned below:

• In order to encourage setting up industrial infrastructure in the form of industrial parks or estates through purchase of private or government land, 100 per cent reimbursement of the stamp duty and registration fees to be given against submission of equivalent bank guarantee from a nationalised bank, provided that the industrial park/estate will be set up within a period of three years of land allotment.

Category Micro Small Medium and large

New unit Seven years, subject to a

maximum of 200 per cent

of fixed capital investment.

Seven years, subject to a






Substantial expansion Seven years, subject to a


of additional fixed capital

investment.



of additional fixed capital

investment.


maximum of 90 per cent of

additional fixed capital

investment.



Assam November 2010

42



Other incentives:

• Projects with a minimum capital investment of US$ 22 million or generating a minimum of 1,000 regular employment and having potential for development of ancillary industries based on their products, will be given mega-project status.

• The units declared sick will be eligible for special incentives for revival, subject to fulfillment of the condition that the increase in the value of fixed capital assets in plant and machinery for revival of sick units should not be less than 25 per cent.

• A sick unit undertaking such relief shall be entitled to exemption of 99 per cent of tax payable under the Assam Value Added Tax Act, 2003, and the Central Sales Tax Act, 1956, for a period of three years and subject to maximum of 100 per cent of additional investment made for rehabilitation.



Assam November 2010

43

IT Policy of Assam, 2009

Aim: To facilitate the growth of IT sector

Key thrust areas and objectives:

• To accord priority to the growth of Information and Communication Technology (ICT) industry in the state.

• To address and alleviate poverty issues through IT.

• To undertake time-bound training programmes in computer skill development and capacity building of the government servants at all levels.

• To improve the delivery of government services to the citizens of the state.

• To encourage the spread of IT in the private sector.

• To introduce programmes and schemes aimed at women‟s participation in IT sector, both, in terms of employment and entrepreneurship.



Assam November 2010

44


Aim: To facilitate the growth of IT sector

Key thrust areas and objectives:

• To develop programmes and training modules for the differently-abled and the challenged segments of the society, and provide employment opportunities for them in the IT and ITeS industry.

• To set up ICT colleges and specialised training institutes in the private sector and the joint sector.

• To promote e-tourism, e-commerce, e-education and telemedicine.

• To promote and set up critical ICT infrastructure such as communication networks, IT parks, business process outsourcing (BPO) and knowledge cities and peripheral services through government and private partnerships.

• To appoint consulting firms/institutes/reputed individuals to aid and advise the Government on IT, ICT and ITeS.

• To strengthen the Assam Electronics Development Corporation Limited (AMTRON), the state IT nodal agency, to enable it to partner meaningfully with the State Government to achieve the policy objectives.



Assam November 2010

45



Fiscal incentives:

• All new as well as existing units undergoing expansion and/or diversification shall be eligible to claim VAT incentives as per the acts and rules of the Government of Assam.

• Power subsidy for a period of five years from the date of starting commercial production. The amount of subsidy shall be 50 per cent, subject to a ceiling of US$ 10,000 per year.

• Companies engaged in IT software, telecommunication, ITeS and electronic/IT hardware manufacturing will be treated as industrial (and not commercial) units and electricity tariff applicable to industrial consumers will be levied.

• Interest rate subsidy on working capital, at 30 per cent for a period of five years, subject to a maximum of US$ 10,000 million per unit or 20 per cent of the turnover, whichever is less.

• Subsidy of 30 per cent on bandwidth for connectivity charges paid to the Internet service provider (ISP), for a period of three years from the date of starting commercial production or operation.

• Subsidy on manpower development in respect of training/technical up-gradation /skill development of local persons in a registered training organisation/institution.



Assam November 2010

46



Fiscal incentives:

• Special incentives for mega projects (projects with an investment of US$ 20 million and above).

• Additional 10 per cent increase in all applicable fiscal incentives under this policy to be provided as early bird incentive for units coming up in the state during the first two years, subject to a ceiling of five units coming up in the IT space during this period.

• In addition to the benefits provided to IT Industries, the following benefits shall be provided for ITeS and electronic/IT hardware manufacturing industries:

• 100 per cent stamp duty exemption.

• 100 per cent exemption from electricity duty.

• Exemption from payment of entry taxes.

• Double floor space index (FSI) and floor area ratio (FAR) for units built in IT parks/hardware parks.



Assam November 2010

47



• Permission for working 24x7 a week.

• No restrictions on employing women workers at late hours.

• ITeS and electronic/IT hardware manufacturing industries to be treated as essential services and continuous process units.

• Unlimited captive and back-up power generation to be permitted.

• Such units to be treated as independent power producers.



Assam November 2010

48

North East Industrial and Investment Promotion Policy (NEIIPP), 2007

Aim: To promote the Northeast region as an attractive investment destination through 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 new units as well as existing units that undergo substantial expansion (minimum 25 per cent increase in fixed capital) and start production before 2017 would qualify for incentives.

• Incentives would be available for all existing industrial units and upcoming units anywhere in the Northeast.

• A high-level monitoring committee/advisory committee to oversee the implementation of the NEIIPP.

• NEIIPP would not be applicable to peripheral activities such as preservation while storage, cleaning, packing, re-packing, labeling or re-labeling, sorting, etc.

• North Eastern Development Finance Corporation (NeDFI) to act as the nodal agency for disbursal of subsidies.

• NEIIPP, 2007, replaced the North East Industrial Policy, 1997.



Assam November 2010

49

NEIIPP, 2007


• Excise duty exemption of 100 per cent on finished products made in the Northeast region.

• Income tax exemption of 100 per cent for industrial units.

• Capital investment subsidy increased from 15 to 30 per cent for plant and machinery up to US$ 360,000 per unit. For units above US$ 360,000 and up to US$ 7.5 million, an empowered committee shall give approval. For units above US$7.5 million, the Union Cabinet shall give approval.

• Interest subsidy of 3 per cent on working capital.

• 100 per cent reimbursement of insurance premium.



Assam November 2010

50

Bamboo and Cane Policy, 2005

Aim: To promote and support the development of the bamboo sector in a comprehensive manner, through a multidisciplinary,

multi-departmental and multi-dimensional integrated approach, to provide economic benefits to the people of the state.

Key features:

• Development and implementation of a sustainable, community-based production model and economic development program for bamboo with concomitant benefits for forest conservation.

• Enhancing employment and income generating opportunities using bamboo and cane as the prime resources.

• Protection and preservation of the ecosystem in the hilly areas, especially, protection of slopes and riverbanks, for sustained productivity.

• Conservation of the bio-diversity, as a large number of endangered species use bamboo forest as habitat and depend on it for their food. All varieties of native bamboo species to be protected and germ-plasm preserved.

• Capacity building in technical institutions, universities and colleges to support a higher level of bamboo-based activities.

• Dissemination of technical and sector-specific knowledge and creation of awareness about the potential of bamboo and related economic opportunities.

• Providing market analysis and support.



Assam November 2010

51

Advantage Assam






Logos used in this section are registered trademarks of the respective companies.

Contents

ASSAM November 2010

52

Tea … (1/2)

• Tea occupies an important place among all the agriculture-based industries in Assam.

• About 17 per cent of the workers of Assam are engaged in the tea industry.

• Assam produces around 55 per cent of the tea produced in India and about one-sixth of the tea produced in the world.

• The state exports about 196 million kg of tea per annum, on an average.

• Tea is grown both in the Brahmaputra and the Barak plains. Tea gardens are mostly found in the districts of Tinsukia, Dibrugarh, Sibsagar, Jorhat, Golaghat, Nagaon and Sonitpur.

Key players

• Assam Tea Corporation Limited

• Assam Company India Limited

• Tata Tea Limited

• Williamson Magor Group

• Apeejay Tea Limited

• Mcleod Russel India Limited

BUSINESS OPPORTUNITIES

Assam November 2010

53

• The Guwahati Tea Auction Centre was established in 1970 for better marketing of the tea produced in the region. This is among the world's largest CTC tea auction centres and the world's second-largest, after Colombo, in terms of total tea handled. Every year, the centre auctions over 150 million kg of tea, valued at more than US$ 120 million.

• The Government of India has created a special purpose tea fund (SPTF) for rejuvenation of tea bushes. This will benefit about 700 to 800 tea gardens of the state.

• The Government has secured a geographical indication (GI) for the tea produced in the state. As a result „Assam Tea‟ is known as „Assam Orthodox Tea‟.


Tea … (2/2)

Assam November 2010

54

Tea – company profiles … (1/2)

Assam Tea Corporation

Limited

• A wholly-owned undertaking of the Government of Assam and established in 1972.

• Comprises of 14 tea estates, spread over 13,000 hectares of prime land in over six districts of Assam.

• Based in Dispur, the corporation provides direct employment to more than 16,000 workers.

Assam Company India

Limited

• Formed in 1839, the company operates 16 factories, 19 tea estates and gardens, spread over 12,000 hectares, of which 18 tea estates are located in Assam.

• It employs over 32,000 people.

Tata Tea Limited • Set up in 1964 as a joint venture with UK-based James Finlay and Company, the group includes Tata Tea and the UK-based Tetley Group, which represent the world's second-largest global branded tea operation (after Unilever‟s Brooke Bond-Lipton) with a product and brand presence in 40 countries.

• The group has 21 tea estates in Assam and its research and development (R&D) centre is located at Terok.


Assam November 2010

http://www.tata.com/default.aspx

55

Williamson Magor

Group

• Established in 1868, the group produces over 75 million kg of tea every year, of which 30 million kg is produced from its 23 tea estates in Assam.

• Tez, Premium Gold and Jaago are the packet tea brands of the company.

Apeejay Tea Limited • Apeejay Tea, formerly known as Assam Frontier Tea Limited, was established in 1889.

• The company has 17 estates, spread over 50,000 acres in Assam, which together produce around 25 million kg of tea.

• The company‟s known brands are Typhoo, Mantra and Maha Mantra.

Mcleod Russel India

Limited

• The company is a member of the Williamson Magor Group.

• The company produces over 80 million kg of tea every year from seven tea estates in Assam, under the brand name Mcleod Russel.

• In 2005, the company acquired the Doom Dooma Tea Company from Hindustan Unilever Limited.


Tea – company profiles … (2/2)

Assam November 2010

http://www.mcleodrusselindia.com/default.asp

http://im.in.com/connect/images/profile/b_profile5/Williamson_Magor_and_Company_300.jpg

56

Energy: coal, oil and gas

• Assam has over 1.3 billion tonnes of crude oil and 156 billion cubic metric tonnes of natural gas reserves. The state also has a substantial reserve of coal bed methane (CBM). The state has about 1,200 million metric tonnes (MT) of coal reserves.

• Assam accounts for about 15 per cent of India's crude output. The wells at Digboi, Duliajan, Sivasagar, etc., also produce natural gas, accounting for about 50 per cent of India's total onshore-production.

• Coal occurs mainly in upper Assam districts of Tinsukia and Dibrugarh in the Makum and Dilli – Jeypore coalfields. Small coal deposits occur sporadically in the central-Assam districts of Karbi Anglong and North Cachar Hills. The proved reserve of coal in this belt is about 340 million tonnes.

• Margherita town in Tinsukia district is known as the „Coal Queen of Assam‟.

Key players

• Bongaigaon Refineries and Petrochemicals

Limited

• Indian Oil Corporation Limited

• Oil and Natural Gas Corporation Limited

• Oil India Limited

• Assam Gas Company Limited

• Patkai Coal Products Private Limited

• SKJ Coke Industries Limited

• Coal India Limited

Source: assamgovt.nic.in


Assam November 2010

57

Energy: coal, oil and gas – company profiles … (1/2)

Indian Oil Corporation

Limited (IOCL)

• IOCL is India's largest company by (in terms of) sales with a turnover of US$ 54 billion in 2009-2010.

• It is the 18th largest petroleum company in the world and stands (features) among the Fortune 500 companies.

• The company has refineries at Digboi, Guwahati and Bongaigaon. The Digboi Refinery is India's oldest and was commissioned in 1901 with a capacity of 0.65 million metric tonnes per annum (MMTPA).

Oil and Natural Gas

Corporation Limited

(ONGC)

• ONGC is India‟s leading oil and gas, exploration and production company.

• The company has 240 onshore production installations, 70 drilling rigs, 15,800 km pipeline network.

• ONGC has around 300 wells in operation in Assam. In addition, drilling of at least 200 new wells in Assam is under way, at an estimated cost of US$ 434 million.

Bongaigaon Refineries

and Petrochemicals

Limited (BRPL)

• BRPL, a Central Government-owned company, was established in 1969 at Bongaigaon in Assam.

• The company merged with Indian Oil Corporation Limited in 2007.

• It was the first indigenous grass-root refinery in the country, integrated with a petrochemical complex at one location.


Assam November 2010

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58

Oil India Limited (OIL)

• OIL was established in 1959 to expand and develop the newly discovered oil fields of Naharkatiya and Moran in Assam.

• OIL owns and operates 13 drilling rigs and 14 work-over rigs.

• The company‟s registered office is located in Duliajan and the pipeline headquarter is located in Guwahati.

Assam Gas Company

Limited (AGCL)

• Established in 1962, AGCL is a State Government undertaking.

• It is headquartered in Duliajan, Assam and is engaged in natural gas-related businesses.

Coal India Limited (CIL) • CIL is a Government of India undertaking and is the single-largest coal producing company in the world.

• CIL operates through 79 areas and 473 mines, of which 279 are underground.

• It commands 75 per cent of the Indian coal market.

• North Eastern Coalfields, a unit of CIL, is located at Margherita, Assam.

• CIL had a turnover of US$ 10 billion in 2008-09.

Energy: coal, oil and gas – company profiles … (2/2)


Assam November 2010

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59

Limestone and cement

• Limestone is an important mineral, which is used in the manufacture of cement.

• Several cement factories have come up in Assam because of availability of high quality limestone in the region.

• Good quality cement-grade limestone is found in the central-Assam districts of North Cachar Hills and Karbi Anglong, where a total reserve of about 670 million tonnes is available for exploitation.

Key players

• Cement Corporation of India Limited

• Barak Valley Cements Limited

• RCL Cement Private Limited

• Jaypee Cements Limited


Assam November 2010

60

Cement Corporation of

India Limited (CCI)

• CCI was incorporated in 1965 as a wholly-owned Government of India company.

• It has 10 units spread over eight states with a total annual installed capacity of 3,848,000 metric

tonnes.

• In Assam, the corporation has a plant at Bokajan, which has a capacity of 198,000 MT and a regional office at Guwahati.

• In 2009-2010, the corporation had sales of US$ 72.3 million.

Barak Valley Cements

Limited

• BVCL was incorporated as a public limited company in 1999.

• The company is located in Assam and all the operations of the company are concentrated in the

Northeast India.

• The manufacturing unit of the company is located at Badarpurghat, Assam.

• Its subsidiary, Badarpur Energy Private Limited, is setting up a 6 MW biomass captive power plant at Badarpurghat in Assam.

Limestone and cement – company profiles … (1/2)


Assam November 2010

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61

RCL Cement Private

Limited

• Established in 1999, RCL has a plant in the North Cachar district of Assam.

• It has a capacity of 100,000 million tonnes.

Jaypee Cements Limited

• The group is engaged in the businesses of power, real estate, hospitality and cement, among others.

• It has announced an investment of US$ 228 million to set up a green field cement plant in the North Cachar Hills district with an annual capacity of 2 million tonnes. This is a joint venture with Assam Mineral Development Corporation Limited.

• The company reported a 62 per cent year-on-year growth in cement dispatches during the first quarter of 2010.


Limestone and cement – company profiles … (2/2)

Assam November 2010

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62

Medicinal herbs and plants

• Assam, with its vast hills and forests, is a home to a variety of medicinal herbs and plants. About 300 types of medicinal herbs and plants are found in abundance in the state with the Brahmaputra valley, itself, having 150 varieties of herbs and plants of commercial value.

• It is estimated that only about 5 to 10 per cent of the plants and herbs have been commercially exploited, offering vast potential for further investments.

Agriculture and horticulture

• An agrarian economy since time immemorial, agriculture accounts for over a third of Assam‟s income and employs 69 per cent of workforce. Agriculture and allied activities contribute around 40 per cent to the state's GDP.

• The agro-climatic conditions support cultivation of a wide range of horticultural crops including plantation crops and various fruits and vegetables, flowers, spices, medicinal and aromatic plants, nut crops and tuber crops.

• Assam has over 600 varieties of orchids growing naturally.


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63

Tourism

• Assam is a tourist destination for nature lovers, wildlife enthusiasts, leisure tourists, ornithologists and photographers from all over the world.

• According to the Ministry of Tourism, 3.9 million tourists visited Assam during 2009 – the highest among the Northeastern states.

• The key tourist destinations in the state are:

• Wildlife sanctuaries: Kaziranga, Manas, Orang, Sonai, Rupai, Laokhowa, Pobitora and Dibru-Chaikhowa.

• Leisure/scenic beauty: Chandubi, Bhairabkunda, Daranga, Bhalukpung and Haflong.

• Pilgrimage: Guwahati, Hajo, Majuli and Batadrawa.

• Golf courses with air strips: Narengi, Borsola and East Boraoi.


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Forest resources

• Assam has a rich forest cover over nearly a quarter of its land area. The forests are a reserve of commercially useful products like timber, bamboo, stone, cane, etc.

• Government of Assam‟s objective is to promote bamboo as a substitute for wood, to make it the timber of the 21st century.


Assam November 2010

65

Sericulture

• The climate and general environment of Assam is well-suited for sericulture. Traditional varieties of silk cultured include eri, muga and mulberry. The muga silk, known for its fine sheen and golden colour, is used by the local silk-weaving industry and has contributed to the development of the muga in the state.

• Assam produces about 10 per cent of total natural silks of India. The state contributes 99 per cent and 65 per cent, respectively, to the total muga and eri raw silk production in the country.


Assam November 2010

66

Major projects being implemented

Project name Promoter Cost

(US$ million) Industry

Lower Subansiri hydro power project NHPC Limited 1,620.0 Hydro power

Tipaimukh hydro power project North Eastern Electric Power

Corporation Limited 1,304.3 Hydro power

Gas Cracker (Dibrugarh) project Brahmaputra Cracker & Polymers

Limited 1,186.9 Petrochemicals

New Bongaigaon thermal power project NTPC Limited 951.2 Coal/lignite-based

power

Lumding-Silchar-Jiribam GC railway line Northeast Frontier Railway 364.4 Railways

DHDT (Bongaigaon) project – modernisation Indian Oil Corporation Limited 357.9 Refinery

Diphu-Karong railway line Northeast Frontier Railway 347.8 Railways

Paper pulp unit Kohinoor Pulp and Paper 319.2 Paper Pulp

Haibargaon-Mairabari and Senchoa Jn-Silghat

Town GC railway line

Northeast Frontier Railway

206.3

Railways

Cement Plant – Phase-I Calcom Cement 111.1 Cement

Billets and Ingots unit BR Metalliks 11.1 Billets and ingots

Source: projectstoday.com

All are Central Government projects


Assam November 2010

67

Key projects being planned

Project name Promoter Cost

(US$ million) Industry

Oil Field Renewal (Assam) project Oil and Natural Gas Corporation Limited 1,001.7 Oil and gases

Urea (Dibrugarh) project Brahmaputra Valley Fertiliser Corporation

Limited 869.5

Nitrogenous

fertilisers

Automotive testing facility

National Automotive Testing and R&D

Infrastructure Project (NATRIP) Implementation

Society

482.2 Automobiles

Road up-gradation (Assam) project Government of India, Ministry of Shipping 347.8 Roadways

Coal-based power (Margherita)

project

North Eastern Electric Power Corporation

Limited 271.7 Thermal power

Road up-gradation (Baihata Chariali-

Tejpur) project National Highways Authority of India 261.5 Roadways

Barauni-Katihar-Guwahati railway

line electrification project West-Central Railway 177.6 Railways

Road up-gradation (NH-37) project Government of India, Ministry of Shipping 152.2 Roadways

Biomass power plant AKB Power Projects 6.2 Biomass power

Road up-gradation (Balipara-

Chardwar-Tawang Road) project National Highways Authority of India 2.7 Roadways

Source: projectstoday.com

All are Central Government projects


Assam November 2010

68

Advantage Assam






Contents

ASSAM November 2010

69

List of approvals and

clearances required

Departments to be consulted

Estimated time taken (days)

Incorporation of the

company

Registrar of Companies • Micro and small scale enterprises:

same day

• Other applications: within 90 days

• Registration of new units under

VAT Act: within 15 days of the

receipt of application

Allotment of

land/shed

• A committee headed by Managing Director – Assam

Industrial Infrastructure Development Corporation

(AIIDC)/Assam Industrial Development Corporation (AIDC)/

Assam Small lndustries Development Corporation (ASDC) –

will allot land/shed, up to one acre under their respective

control, within the prescribed time period.

• A nodal officer from Directorate of Industries and

Commerce will be a member in the land allotment

committee mentioned above.

• Land requirement beyond the limits mentioned above will be

allotted by a state-level committee chaired by Principal

Secretary/Commissioner and Secretary, Industries and

Commerce Department with representatives from Finance

Department, Government of Assam and Revenue

Department, Government of Assam.

• Allotment of land up to one acre

and shed up to 500 sq m in the

industrial estates/industrial

areas/IIDC/growth centres, etc.:

within 30 days

• Others: within 60 days

Key approvals required … (1/2)

DOING BUSINESS IN ASSAM

Assam November 2010

70

List of approvals and

clearances required

Departments to be consulted

Estimated time taken (days)

Power Assam State Electricity Board (ASEB) • Low tension connection – 30 to107 days

• High tension connection – 34 to114 days

• Extra high tension connection – 197 days

Pollution Pollution Control Board Non-polluting industries classified as green

category: no approvals required

Sanction of

incentive/concessions

• District-level committee (for micro

enterprises)

• State-level committee (for small scale

undertakings)

• AIDC Committee (for medium and large

scale undertakings)

Within 90 days

• A State Investment Promotion Board (SIPB), headed by the Chief Minister, has been constituted to act as the final authority in matters of policy concerning industrial development of the state.

• The Board meets once in a quarter to review the industrial and other related policies of the state and to oversee the process of simplification of government rules and regulations for rapid industrial development.


Key approvals required … (2/2)

Assam November 2010

71

Cost of doing business in Assam

Cost parameter Cost estimate Source

Hotel (per room night) US$ 20 to US$ 100 Leading hotels in the state

Residential space

(for 2,000 sq ft house) US$ 21 to US$ 500 per month Industry sources

Power Energy charge: US$ 0.08/kWh

Fixed charge: US$ 2/KVA/month Assam Electricity Regulatory Commission

Labour cost in Assam (minimum

wages per day)

Un-skilled: US$ 1.8

Skilled: US$ 2.0

Labour and Employment Department, Government of

Assam

KVA: Kilo-volt amps, kWh: Kilo-watt hour


Assam November 2010

72

Contact list

Key agency Contact information

Assam Industrial Development Corporation Limited

RGB Road, Guwahati-781024

Phone: 91-361- 2200 399/2201 215/2202 216 /2202 027

Website: www.aidcltd.com

E-mail: [email protected]

Assam Small Industries Development Corporation

Limited

Bamunimaidan, Guwahati-781021

Phone: 91- 361- 2550 265/2550 264

Assam Hills Small Industries Development Corporation

Limited

Dilajee, District Karbi Anglong

Diphu - 782460

Phone: 91- 3671- 272 648

Assam Agro Industries Development Corporation

Limited

RK Road, Ulubari

Guwahati - 781007

Phone: 91- 361- 2470 997/2470 993

Assam Financial Corporation Vittiya Bhavan, M.S Road

Paltanbazaar

Guwahati - 781008

Phone: 91-361-2513 448/2633 658.

Fax: 91- 361-2521 859

Website: www.afconline.gov.in

E-mail: [email protected]


Assam November 2010

http://www.aidcltd.com/

http://www.afconline.gov.in/

73

Annexure

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

2010 47.4

Exchange rates

Average for the year


Assam November 2010

74

India Brand Equity Foundation (“IBEF”) engaged

ICRA Management Consulting Services Limited (IMaCS)

to prepare this presentation and the same has been

prepared by IMaCS in consultation with IBEF.

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due care has been taken during the compilation of this

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ASSAM November 2010

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