north east india - the opportunity landscape

© Confederation of Indian Industry

North East India - North East India -

The OpportunityThe Opportunity

LandscapeLandscape


Total AreaTotal Area : 2,62,191 sq. km ( 8 % of the country)PopulationPopulation: 38.9 mn (3.75% of the total population of India)

96% of the Region shares international borders96% of the Region shares international borders

North East - at a glance North East - at a glance

10.97 lacs

19.90 lacs

21.66 lacs

8.8 lacs31.99 lacs

23.18 lacs

266.18 lacs

5.40 lacs


NER National •Literacy rate 68.6 % 64 %•Avg per capita income

(2008-09) Rs 28,098 Rs 38,084

•Rural Population 85% 72%•Population below

Poverty line34% 25%

Socio- Economics Socio- Economics


Resource BaseResource Base

NE Reserves All India Share %•Coal 327.26 Mil MT 6000 Mil MT 5.45

•Limestone 181.28 Mil MT 956.23 Mil MT 18.93

•Dolomite 80.6 Mil MT 7,533 Mil MT 1.1

•Uranium 17245 MT 116373 MT 14.8

•Bamboo 2.80 Mil Hectares 10.03 Mil Hectares 28

•Forest area 56.93% of Total land

22.83% of Total land


Central Government Impetus Central Government Impetus • Investments during 10th Plan Period : Rs 80,943 crs• Investments during 11th Plan Period (upto 2009-10) : Rs 82,891 crs•Expenditure of Central Ministries in NER for the period 1998-99 to 2007-08 : Rs 55,957 crs

•Since 1998-99, 10% of gross budgetary support to all eligible Central Ministries earmarked for North East

•Unspent amount of these funds is pooled into Non- Lapsable Central Pool of Resources (NLCPR) for the North East

•World Bank is investing in natural resources, water, environment and livelihood projects

•Asian Development Bank is investing in Road & Urban Development projects, Trade and Capacity building


Sector Major Projects Estimated Amount of Tot spent (Rs Crs)

• Road incl East West Corridor, NHDP 2 16,000

• Power incl Tipaimukh, Dibang 8 50,000

• Railways incl National Projects 16 18,613

• Airports 5 Greenfield projects

645*

• Multi-Modal Transit Project at Kaladan 2 1,098

• Industrial parks 15 1,416

Opportunities in North EastOpportunities in North East……Beyond the Traditional Beyond the Traditional

INFRASTRUCTUREINFRASTRUCTURE: few important ones: few important ones……..Projects underProjects under implementationimplementation

* Only for two Projects


HYDEL POWERHYDEL POWER• Perennial rivers -more then 60% of India’s Hydropower Potential in the

North East

• North East poised to have a boom in hydro power projects• Arunachal Pradesh - more then 19 major hydro power project

identified with an estimated cost of Rs 7,300crs• Assam and Arunachal Pradesh have launched special policies for Major

& Minor Hydel Projects for private sector participation

State State Potential Potential Assessed (MW) Assessed (MW)

Arunachal PradeshArunachal Pradesh 50,32850,328

Sikkim Sikkim 4,2864,286

Others Others 8,6438,643

Only 1.6 % Only 1.6 % developed so far developed so far



Natural Gas & OilNatural Gas & Oil •North East has more than half of India’s onshore gas (23 million cubic

meters) and oil repository •The region has a potential of 3.5 million cubic meters of gas per day •Natural gas available in Tripura is of high quality, with methane content

up to 97 per cent•Shale Oil Reserves in Assam are estimated at 137 billion tonnes with a

recovery factor of 20-35% and the crude oil potential is 14 billion tonnes. This can sustain production of 140 million tonnes of crude oil for 100 years. This is more than India's entire current oil consumption

•Huge potential for Private Sector participation in exploration and setting up gas related industries



Power & Gas Projects on the anvilPower & Gas Projects on the anvil

Projects Cost (Rs crores)•Brahmaputra Crackers & Polymers Limited 9400•Lower Subansiri Hydro Power Project - 2,000 Mw 9000•Dibang Multipurpose Hydro Electric Project 16425•Tipaimukh Hydro Electric Project (1500 Mw) 8139•Loktak Downstream Power Project 8000

•Myntdu Leshka Hydro Electric Project(2 X 42 + 1 X 42) Mega Watts

671

•Tuirial Hydro Project Cost – 60 Mw 914•Tizu H.E. Project 731

•Teesta – V Power Project 3000•Gas-Based Thermal Power Project 3000•Monarchak Gas based Project 256

Assam Gas Craker Project is expected to trigger massive growth in Packaging Assam Gas Craker Project is expected to trigger massive growth in Packaging and Textiles sectors across the region. At least 500 downstream plastic and Textiles sectors across the region. At least 500 downstream plastic

processing industries can come up processing industries can come up


TOURISMTOURISM•A 365 days Destination with a wide array of choices, e.g. nature / eco /

ethnic tourism to many tourist destinations •Home to over 160 schedules tribes & over 400 sub tribes and Ethnic

festivals such as the Horn Bill Festival• 20 Golf Courses•A Buddhist circuit connecting Buddhist sites in Sikkim & Arunachal Pradesh

with Thailand being planned•Unique product propositions – Tea Tourism, Golf, River cruise, Angling,

Polo, Floating Hotels, Wildlife, Nostalgia sites - tea estates, war memorials


From 1st January 2011 Govt of India has relaxed the Protected Area Permit for From 1st January 2011 Govt of India has relaxed the Protected Area Permit for foreign nationals, unleashing enormous prospectsforeign nationals, unleashing enormous prospects


EducationEducation, Health Care & Skill DevelopmentHealth Care & Skill Development

• High Literacy rates and rising aspiration levels have unleashed new trends

• Rising demand for education and skill development because of large young population

• IIT & IIM are already there • Scope for many more institutions of higher learning• Rising income levels have also created demand for healthcare• Specialised hospitals being planned• North East Industrial and Investment Promotion Policy 2007 has

classified Vocational Training industrial eligible for all similar benefits



No Longer Land locked – New Directions in No Longer Land locked – New Directions in Connectivity Connectivity

•Rail line between Agartala and Bangladesh on the cards

•Bangladesh has allowed access to Chittagong Port for movement of goods to North East

Akhaura Project linking BangladeshAkhaura Project linking Bangladesh


The 1100cr KMMT Project envisages

connectivity using the Sittwe port in

Myanmar, then through riverine transport and by road to Mizoram and into North East

No Longer Land locked – New Directions in No Longer Land locked – New Directions in Connectivity Connectivity

Kaladan Multi-Modal Transport ProjectKaladan Multi-Modal Transport Project


Incentives for InvestmentsIncentives for Investments

NEIIPP Key FeaturesNEIIPP Key Features• 100% Excise Duty & Income Tax Exemptions• Many Subsidies including Capital, Interest & Transport

Few Unique State Policy Advantages Few Unique State Policy Advantages ……..• Tourism - Arunachal Pradesh, Assam, Meghalaya, Sikkim, Tripura • IT - All except Arunachal Pradesh • Hydropower – Assam & Arunachal Pradesh• Power through Non-Conventional Energy Sources - Mizoram• Bamboo - Assam, Mizoram, Nagaland, Tripura


CII in the North EastCII in the North East

CII working in the North East for the last 10 years with CII working in the North East for the last 10 years with Offices in Assam, Nagaland, Mizoram & TripuraOffices in Assam, Nagaland, Mizoram & Tripura

Thrust AreasThrust Areas • Capacity Building• Market Linkages• Policy Advocacy• Trade Linkages• Technology Dissemination• Investment promotion


Looking into the FutureLooking into the Future

• Large number of 1st generation entrepreneurs scripting success stories

• Major initiatives in agro - processing, using biodiversity as a resource / opportunity

• Initiated organised bamboo plantation and bamboo based industry• Major initiatives in strengthening border trade and especially trade

with Bangladesh • Initiatives in Look East Policy and close ties with BIMSTEC

north east india - the opportunity landscape

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