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MANIPURNovember 2010

2

Investment climate of a state

Resources/Inputs

Incentives to industryPhysical 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

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

MANIPUR November 2010

3

Advantage Manipur

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Manipur

Contents


4

Manipur – State Profile

• Manipur means “the land of jewels” in the state‟s local language. It is a hill state situated in the Eastern-most corner of Northeast India. The state covers an area of 22,327 sq km and shares borders with other Northeastern states of Nagaland, Mizoram and Assam and the neighbouring country of Myanmar.

• Manipur has nine administrative districts. Imphal is the state capital and its largest city.

• Depending on the altitude of hill ranges, the climatic condition varies from tropical to sub-alpine. Important rivers flowing through the state are the Manipur, Imphal, Iril, Nambul, Sekmai, Chakpi, Thoubaland Khuga. Loktak Lake, the largest fresh-water lake in the Northeast, is situated in the state.

• Forest cover occupies nearly 64 per cent of the total geographical area of the state.

• Meeteilon (Manipuri) is the state language, although, English and Hindi are also commonly used for communication.

Manipur November 2010ADVANTAGE MANIPUR

Source: mapsofindia.com

5

Conducive agro-climatic conditions for fruits and vegetables

Link with the Southeast Asian countries

Rare medicinal and aromatic plants

Advantage Manipur … (1/2)

Manipur has significant potential for growing various horticultural crops

because of varied agro-climatic conditions. Growing of fruits and

vegetables on small plots of land provides additional income to the

farmers undertaking crop-husbandry.

Moreh town offers a feasible land-route between India and Myanmar and

to the Southeast Asian countries. A land customs station exists in

Moreh. An integrated check post (ICP) is coming up there, to be

completed by the end of 2010.

A wide variety of rare and exotic medicinal and aromatic plants grow in

Manipur. Entrepreneurs get easy access for processing and marketing

such plants without facing many bureaucratic hurdles.

ADVANTAGE MANIPUR


Manipur November 2010

6

Facilitating transport infrastructure

Beautiful tourist destination

Availability of skilled labour

Imphal has one airport. Air India provides air-cargo services. Three

National Highways run through the state. A railway line is under

construction on the Manipur-Assam border as a national priority project.

Imphal city is surrounded by green verdant hills with salubrious weather. It

is a delight for tourists with a variety of attractions such as lakes, parks

and mountains.

With 70.5 per cent literacy rate, Manipur offers a largely educated

workforce. Knowledge of English is an added advantage of the Manipuri

workforce.

Advantage Manipur … (2/2)

ADVANTAGE MANIPUR



7

Manipur in figuresParameter Manipur All-states Source

Economy

GSDP as a percentage of all states‟ GSDP 0.15 100.0 CMIE, as of 2007-08, current prices

Average GSDP growth rate (%)* 9.4 11.8 CMIE, 2000-01 to 2007-08, current prices

Per capita GSDP (US$) 555.3 992.5 CMIE, as of 2007-08, current prices

Physical infrastructure

Installed power capacity (MW) 157.8 159,398.5Central Electricity Authority,

as of March 2010

National highway length (km) 959 70,548Ministry of Road Transport & Highways,

Annual Report 2008-09

Airports (No) 1 133 Airport Authority of India

Social indicators

Literacy rate (%) 70.5 64.8 Census of India, 2001

Birth rate (per 1,000 population) 15.8 22.8Ministry of Health and Family WelfareRHS

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) 4.3 1,972.6 CMIE, as of March 2010

*Calculated in Indian rupee terms

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

Mizoram, Nagaland and Tripura

ADVANTAGE MANIPUR


8

Key industries with policy thrust and factor advantages

Medium HighLow

Medium

High

Industry attractiveness matrix

Sericulture

Khadi and Village

Food processing

Tourism

Handicrafts

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

Bamboo

processing

Handlooms

ADVANTAGE MANIPUR

Po

licy th

rust

Factor advantage


9

Advantage Manipur






Contents


10

Socio-economic snapshot of Manipur

Parameters Manipur

Capital Imphal

Geographical area (sq km) 22,327

Administrative districts (No) 9

Population density (persons per sq km) 103

Total population (million)* 2.2

Male population (million) 1.1

Female population (million) 1.1

Population growth rate 1991-2001 (%) 24.9

Sex ratio (females per 1,000 males) 974

Literacy rate (%) 70.5

Male (%) 80.3

Female (%) 60.5

Sources: Economic Survey of Manipur, 2008-09, Directorate of Economics and Statistics, Census 2001

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


11

Manipur‟s GSDP

• At current prices, the total Gross State Domestic Product (GSDP) of Manipur was about US$ 1.4 billion in 2008-09.

• The average GSDP growth rate from 1999-2000 to 2008-09, was about 7.8 per cent.

Manipur‟s GSDP

Source: CMIE


0.7

0.6

0.7

0.8

0.9

1.0

1.1

1.3

1.5

1.4

0.0 0.5 1.0 1.5 2.0

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

US$ billion


CAGR7.8%

12

• In 2008-09, the total Net State Domestic Product (NSDP) of Manipur at current prices was about US$ 1.2 billion.

• From 1999-2000 to 2008-09, the average NSDP growth rate was about 7.6 per cent.

Manipur‟s NSDP

Manipur‟s NSDP

Source: CMIE


0.6

0.6

0.6

0.7

0.8

0.9

1.0

1.1

1.3

1.2

0.0 0.5 1.0 1.5

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

CAGR7.6%

US$ billion


13

Manipur‟s economy is driven by tertiary and secondary sector

• In 2008-09, the tertiary sector contributed 41.4 per cent to the state‟s GSDP at current prices, followed by the secondary sector at 35.1 per cent.

• The secondary sector‟s share in GSDP was 35.1 per cent in 2008-09 vis-à-vis 22.3 per cent in 1999-2000. This growth is driven by registered and un-registered manufacturing, which registered a growth of 7.8 per cent between 1999-2000 and 2008-09.

• The primary sector recorded a growth of 6.1 per cent between 1999-2000 and 2008-09. Its growth was owing to the contribution of agriculture.

Percentage distribution of GSDP

Source: CMIE

CAGR

6.1%

13.2%


26.9 23.6

22.3 35.1

50.841.4

1999-00 2008-09

Primary Sector Secondary Sector Tertiary Sector


5.3%

14

Per capita GSDP

• In 2008-09, the state‟s per capita GSDP was US$ 516.5.

• The per capita GSDP increased at a CAGR of 5.7 per cent between 1999-2000 and 2008-09.

Source: CMIE

Per capita GSDP

(US$

)


314.0283.2

301.8324.3

376.2409.2

446.9

500.7

555.3516.5

0.0

100.0

200.0

300.0

400.0

500.0

600.0

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


15

39.6%

7.1%5.2% 4.2%

47.2%

9.0%

2.0% 1.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Food Education Medical Durable goodsAll-India Manipur

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

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


52.3%

3.7% 6.3%3.6%

51.1%

7.2% 2.8% 2.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Food Education Medical Durable goods

All-India Manipur

Urban Rural


16

Key industries in Manipur

Key industries

• Khadi and village industry

• Handlooms and handicrafts

• Sericulture

• Food processing

• Bamboo processing

• Tourism

• Manipur has abundant natural resources that offer potential for the development of infrastructure and industrial sectors.

• The Manipur Industrial Development Corporation Limited (MANIDCO) and Small Industries Development Organisation (SIDO) are responsible for industrial development in the state.

• Other important corporations include Manipur Handloom & Handicrafts Development Corporation Limited(MHHDCL), Manipur Electronic Development Corporation Limited (MANITRON) and Manipur Food Industries Corporation Limited.

• As of March 2006, there were 10,264 registered small scale industries (SSI), both SIDO and non-SIDO. The total investment was about US$ 9.4 million in plant and machinery and they provided employment to 53,719 persons.



17

Manipur has abundant forest resources

CropAnnual production

(„ooo tonnes)

Rice* 376.0

Natural Rubber* 0.1

Potatoes 15.2

• Natural forests cover about 64 per cent of the total geographical area of Manipur. Agriculture has a significant share in the state domestic product and provides employment to about 52.2 per cent of the total workers in the state.

• Teak, pine, oak, uningthou, leihao, bamboo, cane, etc., are important forest resources. In addition, rubber, tea, coffee, orange, and cardamom are grown in the hill areas. Food and cash crops are grown, mainly, in the valley region.

• Major fruits grown in the state are pineapple, lime, lemon, banana, orange, papaya, plum and passion fruit.

• Rice is the staple food of Manipur and is grown in both the hills and the plains. In 2007-08, rice accounted for about 97 per cent of the total food grain production in the state.

*As of 2007-08

^As of 2008-09

Source: CMIE



18

• According to the RBI, FDI inflows from April 2000 to May 2010 amounted to US$ 64 million*.

• As of March 2010, the outstanding investment in the state was US$ 4.3 billion.

• Electricity sector accounted for over 50 per cent of the outstanding investments in the state followed by the services sector.

• Construction and irrigation sectors accounted for the rest.

Investments and FDI inflows

Source: CMIE

Break up of investments by sector


51.0%42.6%

0.1%

6.2%Electricity

Services

Construction

Irrigation

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

Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and

Tripura.


19

Advantage Manipur






Contents


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Road network• The state has three National Highways (NH), the

arterial one being NH-39. It connects lmphalwith Dimapur in the neighboring state of Nagaland. From Imphal it runs for another 110 km Southeast to the international border town of Moreh on the Indo-Myanmar border.

• The NH-53 connects Imphal with Jirighat on the Manipur-Assam border. The NH-150 runs southwards, connecting Manipur with Seling in Mizoram.

• The Government of India has a trilateral agreement with Thailand and Myanmar to construct a trans-Asian highway connecting India (through Manipur) to the two countries.

• The Manipur State Road Transport Corporation (MSRSTC) provides state road transport services.

Road type Road length

(km)

National Highways 959

State Highways 668

Major district roads 964

Other district roads 1,013

Source: Manipuronline.in

INFRASTRUCTURE STATUS

As of 2009

Source: Economic Survey of Manipur, 2008-09


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Airports and railways

Domestic Airport

• Manipur has a domestic airport at Imphal, the Tulihal Airport, which is located about 8 km from the heart of the city.

• The airport is being expanded to increase parking space for more aircrafts and to make it an international airport. A new terminal building with cold-storage facilities is in the pipeline.

• The only major functional railhead linking Manipur with the rest of India is at Dimapur (in the state of Nagaland), 215 km away from Imphal.

• A railway-line from Jiribam (on the Manipur-Assam border) is under construction as a national priority project. This railway line is expected to connect Imphal with the rest of India by 2012-14.


Imphal


22

Power

Installed power capacity

(MW)

Source: Central Electricity Authority

• As of March 2010, Manipur had a total installed power generation capacity of 157.8 MW. It consisted of 50.9 MW under state utilities and 106.9 MW under central utilities .

• The Manipur Renewable Energy Development Agency (MANIREDA) has electrified around 93 remote villages in the Churachandpur district and one in the Bishnupur district with solar home lighting systems.

• Hydropower majors such as Satluj JalVidyutNigam Limited (SJVNL) and National Hydroelectric Power Corporation Limited (NHPC) are jointly setting up a mega hydro electric power project at Tipaimukh with an investment of US$ 2 billion. On completion, the project would have six generating units of 250 MW each totalling to 1,500 MW.


159.4

157.9 157.9 157.9 157.8

157.0

157.5

158.0

158.5

159.0

159.5

160.0

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


23

Telecom infrastructure

Telecom infrastructure (2009)

GSM cellular subscribers: 5,519,150*

Internet/broadband subscribers: 99,432*

Post offices: 697

Telephone exchanges: 54

Wireless subscribers: 5,309,850**

Wire-line subscribers: 326,372**

Telecom operators in Manipur

• BSNL

• Bharti Airtel

• Aircel Limited

• Vodafone Essar

• Reliance Communications

• Tata Indicom

• Dishnet Wireless

• IDEA Cellular

• As of March 2010, Manipur had 5.3 million wireless subscribers and 326,372 wire-line subscribers.

• As of 2009, the state had 54 telephone exchanges.

• The state also has 697 post offices and two telegraph offices.

Sources: Cellular Operators Association of India, Ministry

of Communications & Information Technology, Telecom

Regulatory Authority of India

*As of June 2010

**As of March 2010

Source: Cellular Operators Association of India



24

• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), two projects, costing US$ 11 million, have been sanctioned for Imphal.

• The projects have been sanctioned for completion between 2007-08 and 2009-2010. Key areas of development are solid waste management and preservation of water bodies.

• A sewerage treatment plant has been commissioned at Lamphlpet by the Manipur Government at a cost of US$ 4.6 million. A sewerage infrastructure project costing US$ 29.3 million is being executed at Imphal.

Urban infrastructure



25

Education sector … (1/2)

Educational infrastructure as of 2008

• Universities: 2

• Colleges for general education: 62

• Colleges for professional education: 69

• Industrial Training Institutes (ITI): 11

• According to the Census 2001, Manipur had a high literacy rate of 70.5 per cent as compared to the other states.

• The Education Department of the Government of Manipur regulates the education system of the state. The department has four sub-entities, one each for university and higher education, school education and adult education as well as the State Council of Educational Research and Training.

• The number of educational institutions increased from 538 in 1950-51 to over 4,222 by the end of 2004-05. They now comprise 4,089 schools, 62 colleges, 69 colleges for professional education and two universities.

Source: Economic Survey of Manipur, 2008-09, Manipur

official website (manipur.nic.in)

Literacy rate (%)

Literacy rate 70.5

Male literacy 80.3

Female literacy 60.5

Source: Census 2001



26

Manipur‟s education statistics

Schools (No) High/higher secondary: 3,954

Students enrolled

(No)

Primary: 331,209

Upper primary: 120,348

Pupil-teacher ratio

Primary: 19

Upper primary: 19

Secondary: 19

Gross enrolment

ratio

Primary: 148.9

Upper primary: 78.4

• Several programmes including the National Programme of Nutrition (mid-day meals scheme), support primary education. The state also promotes education for girls.

• Under the Union Government‟s National Literacy Mission (NLM), the State Government has implemented the Total Literacy Campaign (TLC) for the non-literate population in the age group of 15 to 35 years. As of March 2007, there were 260,000 persons enrolled under TLC. A Post Literacy Programme (PLP) has been launched for age group above 35 years. As of December 2007, there were 240,000 persons enrolled in the PLP.

• The State Literacy Mission Authority (SLMA), Manipur, was constituted as per the directive of the NLM Authority. The project is funded on sharing basis by the Government of India and the State Government.

Source: Department of Education and School Literacy Flash

Statistics, 2008-09

Education sector … (2/2)



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Health infrastructure

Health infrastructure - 2008

• Hospitals: 15

• Primary health centres: 72

• Sub-centres: 420

• Community health centres: 16

• Dispensaries: 20

Health indicators

Population served per hospital/

dispensary4,660

Persons served per hospital bed 1,100

Birth rate* 15.8

Death rate* 5.0

Infant mortality rate** 14

Sources: Ministry of Health and Family Welfare, Sample

Registration System 2008, Economic Survey of Manipur, 2008-09

*Per thousand persons

**Per thousand live births

• The health infrastructure of the state comprised 15 hospitals, 72 primary health centres, 420 primary health sub-centres, 16 community health centres and 20 dispensaries as of 2008.

• The state runs various health and family welfare programmes which include:

• Rural health scheme

• National Malaria Eradication Programme (NMEP)

• National Leprosy Control Programme (NLCP)

• National T .B. Control Programme (NTCP)

• National Programme for Control of Blindness (NPCB)

• Maternal Child Health-Cum-Expanded Programme on Immunisation

• National Aids Control Programme

• National Iodine Deficiency Disorder Control Programme (NIDDCP)

• National Rural Health Mission (NRHM)

Sources: Economic Survey of Manipur, 2008-09,

Ministry of Health and Family Welfare



28

Cultural infrastructure

• Manipur has its distinct art forms. The various styles of Manipuri dances include Ras Lila, Nupa Pala, PungCholom, Maibi dance and KhambaThoibi dance.

• The Manipur State Museum and Sekta Archeological Museum preserve the state‟s ancient heritage.

• A number of festivals are celebrated in Manipur such as Lai Haraoba, Yaoshang (Dol Jatra), Ratha Jatra, festival of Kuki Chin Mizo, Gang-Ngai (festival of Kabui Nagas) and Chumpha.

• Theatre and society are closely linked in Manipur. Shumang Iila and Phampak Iila (stage drama) are the two popular types of theatre. The Manipur Dramatic Union, Arian Theatre, Chitrangada Natya Mandir, Society Theatre, Rupmahal, Cosmopolitan Dramatic Union and the Chorus Repertory Theatre are prominent theatre groups in the state.

• Many indigenous games are played in the state, such as Sagol Kangjei (Manipuri Polo), Yubi Lakpi(Manipuri Rugby), Hiyang Tannaba (Boat Race), Mukna (Manipuri Wrestling), Kang, Thang-Ta and SaritSarat.

• Important stadiums in the state include the Kondompoksi Stadium, the Khuman Lampak Main Stadium and the Mapal Khagjeibung Ground, all situated in Imphal.



29

Industrial infrastructure

Infrastructure Description

Nilakuthi food park

Food park to be completed by end of 2010 at Nilakuthi on a land-area of about 31 acres. The

Manipur Food Industries Corporation Limited is the implementing agency. The park will host 40

to 50 food processing units for which common facilities will be provided. A bridge connecting

NH-39 and Nilakuthi is to be constructed for the convenience of the food processing units.

Integrated infrastructural

development project (IID)

The Government of India has sanctioned the IID project at Moreh with a total project cost of

US$ 1.3 million. Land acquisition is under way as of September 2010.

Export promotion industrial

park (EPIP)

The Government of India has approved the EPIP project at Khunuta Chingjin in the Kakching

sub-division of Thoubal district at a project cost of US$ 3.2 million. Land acquisition is under

way as of September 2010.

Trade centre

The Government of India has sanctioned US$ 0.4 million for construction of two trade centres,

one at Moreh and another at Imphal. Construction of the Moreh Trade Centre is complete and

that of the Imphal Trade Centre at Porompat , is ongoing.

Industrial growth centre Located at Chingaren, construction expected to start by December 2010.



30

Major investments in the infrastructure sector

Infrastructure type Investments (US$ million)

Power* 2,139.3

Railways 588.9

Telecommunication 4.6

Total 2,732.8

• As of March 2010, over US$ 2.7 billion of investments have been made towards ramping up Manipur‟s infrastructure sector.

• Over 78 per cent of the investments in infrastructure have been made in the power sector.

• Railways and telecommunications are the other two infrastructure sectors that have attracted investments in the state.


Source: CMIE

As of March 2010

*Generation and distribution


31

Advantage Manipur






Contents


32

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

Aim: To promote the Northeast as an attractive investment destination through several 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 commercialproduction.

• 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 would oversee the implementation of the NEIIPP.

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

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

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

Sector-specific policies … (1/11)

STATE POLICIES AND INCENTIVES


33

NEIIPP, 2007 (continued)

Incentives and concessions:

• 100 per cent excise duty exemption on finished product made in the Northeast.

• 100 per cent income tax exemption for industrial units.

• Capital investment subsidy has been 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 at the rate of 3 per cent on working capital.

• 100 per cent reimbursement of insurance premium.




34

Manipur IT Policy, 2003

Aim: To transform Manipur into an Information Technology driven economy.

Key objectives:

• To set up the institutional framework to implement and monitor the IT Policy.

• To use e-governance to upgrade the standard and quality of administration and to provide citizen-oriented, efficient and cost-effective government.

• To promote investments and growth in IT industry and encourage private sector initiative in IT-related infrastructure and services so as to increase the contribution of IT in the economic growth of the state.

• To provide adequate infrastructure in the state for the IT sector.

• To encourage greater IT literacy and education.

• To generate IT-related employment opportunities for the educated youth.

• To use the power of IT to enhance earning capacity of the citizens for a better quality of life.




35

Manipur IT Policy, 2003 (continued)

Initiatives:

• The government to undertake major administrative reforms, redefining its role and recasting the structure and functioning of its administrative departments to facilitate adaptation to IT.

• The state to establish a backbone network – Manipur State Wide Area Network ( MAN-NET) – for voice, data and video transmission and dissemination.

• The state government departments to establish departmental local area networks/intranets.

• The government to consider issuing electronic SMART cards to citizens with multi-functions that enable citizens access interactive services, make payments and serve as ration cards, driving licenses and identity cards, etc.

• Internal communication within the government to be improved by increasing the use of e-mail, bulletin boards and video-conferencing.




36

Manipur IT Policy, 2003 (continued)

Initiatives:

• A website of the state would be set up by the IT Department in association with the National Informatics Centre (NIC), which will interconnect the website of every department and organisation, who in turn, shall develop their own websites.

• Public information and facilitation counters to be set up in the government offices so that public-domain information is available without any delay and also for e-mail access into grievance and suggestion databases for citizens.

• IT literacy in schools and colleges, IT modules in degree colleges, Internet in educational institutes, distance education through IT, setting up training centres for unemployed, training of teachers, setting up community information centres are some of the initiatives on the IT education side.

• The State Government shall endeavour to provide continuous and uninterrupted power supply for IT industries.

• The State Government to permit setting up of IT software units/IT parks in residential areas and change of existing industry to IT units/IT parks.




37

New Industrial Policy of Manipur, 2002

Aim: To facilitate rapid and substantial industrial development in the state through enhanced investment, infrastructure and

institutional support, incentive packages and utilisation of existing resources.

Key features:

• Create necessary conditions for maximum possible utilisation by tapping locally available raw-material and human resources for industrialisation.

• Develop industrial infrastructure in selected areas by providing common facilities in a compact area for specialised categories of industrial units.

• Promote export oriented industries with a view to exploit the emerging market opportunities in the neighbouring countries.

• Develop marketing facilities for industrial products.




38

New Industrial Policy of Manipur, 2002 (continued)

Aim: To facilitate rapid and substantial industrial development in the state through enhanced investment, infrastructure and

institutional support, incentive packages and utilisation of existing resources.

Key features:

• Develop village and small scale service and business enterprises (SSSBE) to provide self-employment to educated youths.

• Revive and rehabilitate sick industrial units in the state.

• Expedite formalisation and development of cross-border trade with Myanmar.

• Provide investor-friendly environment by removing procedural bottlenecks and legal hurdles.

• Develop and promote the tourism industry in the state.

• Enhance value addition in products and processes through rapid technology upgradation.

• Encourage quality control, standardisation and competitiveness of the local products.

• Encourage industry based on medicinal plants, and research and development in the field.




39



• The State Government will make efforts to provide the following:

• Developed land with infrastructural facilities.

• Undeveloped land to manufacturing industrial units only including village industries sector.

• The developed land will be allotted on hire purchase basis with suitable terms of instalments, subsidising the cost of land development as follows:

• 25 per cent for small scale industry units.

• 30 per cent for export-oriented units (EOU) and units owned by weaker sections.

• 15 per cent for large and medium units.

• Available sheds will be provided to SSI units in infrastructural centres on monthly rental basis. Subsidy on the monthly rentwill be provided at 50 per cent for entrepreneurs of all categories and 55 per cent for the EOUs and units set up by weaker sections.

• Subsidy at US$ 215 per trainee or 50 per cent of the actual cost of training, whichever is less subject to a maximum ceiling of US$ 645 per year, shall be provided to industrial units which depute their workers for technical training in government recognised or other reputed training institutions.




40



• Industries established in thrust sectors will be provided 30 per cent subsidy on the total capital investment on plant and machinery and miscellaneous fixed assets subject to ceiling of US$ 30,000 per unit. For EOUs, the rate of subsidy shall be 35per cent subject to a maximum of US$ 40,000 per unit.

• SSIs will be provided an interest subsidy of 5 per cent per annum on working capital and term loan taken from banks and financial institutions.

• Power subsidy will be provided to SSI units for the first five years from the date of commercial production of the unit at the rates fixed by the government from time to time.




41



• Subsidy of 50 per cent will be admissible to meet the cost of feasibility study and project report preparation, subject to a maximum ceiling of US$ 1,085 in each case.

• Subsidy of 50 per cent will be admissible to meet the cost of technical know-how obtained by SSI unit from organisations approved in advance by the Government of Manipur.

• For individual units purchasing raw-materials directly, a concessional rate of 4 per cent of value of raw-materials will be admissible as full tax set off against any sales tax paid by them.

• SSI units, village and cottage industrial units will be reimbursed in full the stamp duty and registration fee for securing loans and other incentives from financial institutions.

• For purchase of testing equipment, 25 per cent subsidy will be admissible to SSI units. The subsidy will be 30 per cent in case of units owned by weaker sections and EOUs.




42



• A state capital investment subsidy for the purpose of modernisation/expansion/diversification at the rate of 15 per cent or US$ 2,000, whichever is less, will be admissible for the purchase of plant and machinery.

• All eligible units get exemption from payment of earnest money and security deposits on items for which they are registered on tender by the state government agencies.

• All IT industries employing a minimum of 25 persons would be entitled to the following:

• 50 per cent concession on floor space rentals for a maximum of five years

• All IT industries set up by local entrepreneurs would be given 50 per cent concession on floor space rentals for a period of two years from the date of setting up of the unit, subject to a ceiling, to be notified by the State Government.




43

Advantage Manipur






Contents


44

Khadi and village industry

• The khadi and village Industry not only provides employment to people in rural and semi-urban areas at low investment per job, but also makes use of local skill resources and provides part time as well as full time work to rural artisans, women and minorities.

• The state board for development of khadi and village industry was established in 1996.

• The sector produces goods worth about US$ 10 million every year and employed about 70,000 people in 2009.

Handloom• Handloom is the largest cottage industry in the state. Manipur ranks among the top five states in terms

of number of looms in the country. The state had over 270,000 looms and 300,000 weavers in 2009.

• Most of the silk weavers, famous for their skill and intricate designing, are from Wangkhei, Bamon Kampu, Kongba, Khongman andUtlou.

• To provide welfare measures and better working conditions to handloom weavers, schemes such as group insurance, health package, work-shed cum-housing scheme, project package scheme, integrated handloom village development project and the Deen Dayal Hathkargha ProtsahanYojana are being implemented in the handloom sector.

BUSINESS OPPORTUNITIES


45

Handicrafts

• Handicrafts is another important industry in the state. It has its own unique identity amongst the various crafts of the country.

• Cloth embroidery, cane and bamboo, ivory, stone and wood carving, metal crafts, deer horn decorative articles, supari working sticks, dolls and toys are some of the well known Manipuri handicrafts.

• Since cane and bamboo are abundantly available, basketry is a popular occupation of the people of Manipur. People of the Maring tribe, inhabiting the Chandel district are the main manufacturers of these types of basket. Other tribes and the Meeteis also contribute to the state‟s basket trade.

• Pottery flourishes in the Andro, Sekmai, Chairen, Thongjao, Nungbi and parts of Senapati districts.



46

Sericulture

• Manipur has four varieties of silk: mulberry, eri, muga and oak-tussar.

• The Manipur Sericulture Project was initiated by the Government of India with the assistance of the Government of Japan, particularly, to provide employment to the women.

• In 2007-08, a Catalytic Development Programme was implemented with financial assistance of US$ 0.24 million from Central Silk Board and Ministry of Textiles.

• There were 170 primary sericulture societies as of 2008-09.



47

Food processing

• The food processing industry is a major thrust sector of Manipur. The state‟s agro climatic conditions are most suited for such industries.

• MAGFRUIT, RATNA, SANA, MANIFRU, LIKLA, HEIRANG, CHANDANI and WAIFRUIT are some of the local popular brand names in this industry.

• Fresh packed pineapple and passion fruit, pulp, juice, toffee and concentrate, lemon and orange juice, ginger oil, ginger lime, canned mushrooms and fresh in brine or canned dry bamboo shoots, are some of the well known products of Manipur.



48

Bamboo processing

• Three common facility centres for bamboo processing have been established at Tamenglong, Churachandpur and Imphal.

• Initiatives have been taken to set up a bamboo technology park. The main objective of the park is to set up entrepreneurial cluster-based bamboo processing units, on public private partnership basis under the special purpose vehicle (SPV) mode, in association with the National Mission on Bamboo Application (NMBA), of Government of India.



49

Tourism

• Manipur has a pleasant climate, exotic greenery and varied flora, besides a rich tribal culture.

• According to the Ministry of Tourism, 1.2 million tourists visited Manipur in 2009.

• The key tourist destinations in the state include the following:

• The Keibul Lamjao National Park on the bank of the Loktak Lake, the only habitat of brow antlered deer which is locally known as „Sangai‟.

• The Indian National Army Memorial at Moirang where Indian National Army (INA) hoisted tri-colour flag for the first time on Indian soil.

• The Siroy National Park at Ukhrul.

• Loktak lake, the biggest fresh water lake in the Northeast.



50

Major projects being implemented

Name of the project PromoterCost

(US$ million)Industry Project ownership

Tipaimukh hydro power projectNorth Eastern Electric

Power Corporation Limited1,304.3 Hydro-power

Central

Government

Thoubal irrigation project Government of Manipur 55.2 Irrigation State Government

Sub-transmission and

distribution (Manipur) project

Manipur State Electricity

Department30.8 Power distribution State Government

Office building (Chingmeirong)

projectGovernment of Manipur 30.7

Business

complexesState Government

Sewage infrastructure (Imphal)

projectGovernment of Manipur 29.3

Water, sewage and

effluent treatmentState Government

Capital complex (Manipur)

project

Public Works Department,

Manipur19.1

Business

complexesState Government

Khuga irrigation project Government of Manipur 15.9 Irrigation State Government

Singda irrigation projectGovernment of Manipur

9.2Irrigation

State Government

Hospital (Thoubal) project Government of Manipur 4.8 Hospitals State Government

Source: projectstoday.com



51

Key projects being planned

Name of the project PromoterCost

(US$ million)Industry Project ownership

Jiribam-Imphal BG railway

line

Northeast Frontier

Railway541.8 Railways Central Government

Loktak downstream hydro

power projectNHPC Limited 136.4 Hydro-power Central Government

Development of capital

complex (civil secretariat

component)

Government of Manipur 29.1Community

servicesState Government

Campus (Imphal) projectRegional Institute of

Medical Sciences15.2

Community

servicesCentral Government

Jiri irrigation project Government of Manipur 10.5 Irrigation Central Government

Road up-gradation (Barak-

Jiribam) project

Border Roads

Organisation9.8 Roadways Central Government

Road up-gradation (Maram-

Peren) project

Border Roads

Organisation9.6 Roadways Central Government

College campus (Iroishmba)

project

Central Agricultural

University6.3

Community

servicesCentral Government

Construction of transmission

line – Yerumbam-

Yainganagpokpi

Government of Manipur 4.7 Power Central Government

Source: projectstoday.com



52

Advantage Manipur






Contents


53

Key approvals required … (1/2)

• In order to facilitate investment the State Government has set up a single-window facilitation with escort mechanism, which provides coordination with departments for all services and clearances that are required for expeditious establishment of industrial units.

• A special cell in the Directorate of Commerce and Industries has been set up to provide the escort mechanism for investments.

• All new units, except those in the IT sectors, have to necessarily obtain clearance from Manipur Pollution Control Board (MPCB).

• Clearance from the Department of Environment and Forest, Government of Manipur, is required prior to setting up new units in areas other than industrial estate, growth centres, EPIP, IT parks, Integrated Infrastructure Development Corporation (IIDC) and declared industrial areas.

DOING BUSINESS IN MANIPUR


54

List of approvals and clearances required Department

Incorporation of company Registrar of companies

Registration, IEM, industrial licensesDirector of Commerce and Industries, Manipur

Permission for land use

Allotment of landManipur Industrial Development Corporation Limited

(MANIDCO)

Site environmental approvalManipur Pollution Control Board (MPCB)/Department of

Environment and Forest, Government of ManipurNo objection certificate and consent under Water and Pollution

Control Act

Registration under States Sales Tax Act and Central and State Excise

Act Excise department of Manipur

Commercial taxes

Sanction of power Manipur State Electricity Department/The Joint Electricity

Regulatory Commission for the States of Manipur &

Mizoram (JERC)

Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department, Manipur

Water and sewerage clearanceManipur Public Health Engineering Department (PHED)

Water connection

Key approvals required … (2/2)



55

Cost of doing business in Manipur

Cost parameter Cost estimate Source

Cost of land

(per acre)US$ 50,000 (Imphal) NeDFI database

Hotel costs US$ 10 to US$ 60 per room per night Industry sources

Cost of office space

(2,000 sq ft)US$ 90 to US$ 150 per month Industry sources

Cost of residential space

(2,000 sq ft)US$ 60 to US$ 100 per month Industry sources

Labour cost in Manipur

Category of workersMinimum wages

US$ per day

Un-skilled 1.8

Skilled 1.9

Source: Labour Department, Manipur



56

Manipur Industrial Development

Corporation Limited (MANIDCO)

Formerly known as the Manipur Small Industries Corporation Limited (MSIC),

MANDICO‟s objective is to aid, advice, assist finance, protect and promote the

interest of small and medium industries in the state.

Manipur Handloom & Handicrafts

Development Corporation Limited

(MHHDCL)

MHHDCL was set up in 1976 to help production and direct marketing of

handloom and handicraft products.

Manipur Food Industries Corporation

Limited (MFIC)

MFIC was incorporated in 1997. The corporation provides assistance and support

services in the field of technical, financial, marketing, etc., to food processing units.

Key investment promotion offices



57

Contact list

Manipur Industrial Development Corporation Limited

Industrial Estate Takyelpat, Imphal - 795001

Post Box No 46

Phone: 91-385-2221 967/2223 624

Website: http://mastec.nic.in/manidco.htm

Minister for 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: http://mdoner.gov.in



58

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 rate

Average rates for the year



59

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This presentation is for information purposes only. While

due care has been taken during the compilation of this

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