North East India - The Opportunity Landscape

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North East India -

The Opportunity Landscape

© Confederation of Indian Industry

North East - at a glance

5.40 lacs

10.97 lacs

266.18 lacs

19.90 lacs

23.18 lacs

21.66 lacs

31.99 lacs

8.8 lacs

Total Area : 2,62,191 sq. km ( 8 % of the country)

Population : 38.9 mn (3.75% of the total population of India)

96% of the Region shares international borders

© Confederation of Indian Industry

Socio- Economics

Literacy rate

Avg per capita income

(2008-09)

Rural Population

Population below

Poverty line

NER

68.6 %

Rs 28,098

85%

34%

National

64 %

Rs 38,084

72%

25%

© Confederation of Indian Industry

Resource Base

Coal

NE Reserves All India

327.26 Mil MT 6000 Mil MT

Limestone 181.28 Mil MT 956.23 Mil MT

Dolomite 80.6 Mil MT

Uranium 17245 MT

7,533 Mil MT

116373 MT

Bamboo 2.80 Mil Hectares 10.03 Mil Hectares

Forest area 56.93% of Total land

22.83% of Total land

Share %

5.45

18.93

1.1

14.8

28

© Confederation of Indian Industry

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

© Confederation of Indian Industry

Opportunities in North East … Beyond the Traditional

INFRASTRUCTURE : few important ones … .

Projects under implementation

Sector

• Road incl East West Corridor, NHDP

Major Projects

2

Estimated Amount of Tot spent (Rs Crs)

16,000

• Power incl Tipaimukh, Dibang

• Railways incl National Projects

• Airports

• Multi-Modal Transit Project at Kaladan

8

16

5 Greenfield projects

2

50,000

18,613

645*

1,098

• Industrial parks 15 1,416

* Only for two Projects

© Confederation of Indian Industry

Opportunities in North East … Beyond the Traditional

HYDEL POWER

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

North East

State

Arunachal Pradesh

Sikkim

Potential

Assessed (MW)

50,328

4,286

Only 1.6 % developed so far

Others 8,643

• 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

© Confederation of Indian Industry

Opportunities in North East … Beyond the Traditional

Natural 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

© Confederation of Indian Industry

Power & Gas Projects on the anvil

Projects

Brahmaputra Crackers & Polymers Limited

Lower Subansiri Hydro Power Project - 2,000 Mw

Dibang Multipurpose Hydro Electric Project

Tipaimukh Hydro Electric Project (1500 Mw)

Loktak Downstream Power Project

Myntdu Leshka Hydro Electric Project

(2 X 42 + 1 X 42) Mega Watts

Tuirial Hydro Project Cost – 60 Mw

Tizu H.E. Project

Teesta – V Power Project

Gas-Based Thermal Power Project

Monarchak Gas based Project

Cost (Rs crores)

9400

9000

16425

8139

8000

671

914

731

3000

3000

256

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

© Confederation of Indian Industry

Opportunities in North East … Beyond the Traditional

TOURISM

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 foreign nationals, unleashing enormous prospects

© Confederation of Indian Industry

Opportunities in North East … Beyond the Traditional

Education , Health 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

© Confederation of Indian Industry

No Longer Land locked – New Directions in

Connectivity

Akhaura Project linking Bangladesh

Rail line between

Agartala and Bangladesh on the cards

• Bangladesh has allowed access to Chittagong

Port for movement of goods to North East

© Confederation of Indian Industry

No Longer Land locked – New Directions in

Connectivity

Kaladan Multi-Modal Transport Project

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

© Confederation of Indian Industry

Incentives for Investments

NEIIPP Key Features

• 100% Excise Duty & Income Tax Exemptions

• Many Subsidies including Capital, Interest & Transport

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

© Confederation of Indian Industry

CII in the North East

CII working in the North East for the last 10 years with

Offices in Assam, Nagaland, Mizoram & Tripura

Thrust Areas

Capacity Building

Market Linkages

Policy Advocacy

Trade Linkages

Technology Dissemination

Investment promotion

© Confederation of Indian Industry

Looking into the Future

Large number of 1 st 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

© Confederation of Indian Industry

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