MAJOR INDUSTRIES
Agriculture is the main occupation of the people of Arunachal Pradesh. Most of the state Land is covered with dense and rich forest. So the forest product and industries based on forest products are the life line in the state and provides income and employment to large scale of people. Most of the industries in the state are based on forest products such as Timber, Veneer and Plywood. Apart from forests based industries there are industries in tea, cement, petrochemical areas as listed below:
1. | Tirap Veneer & Saw Mills Ltd. | Miao, Dist. Changlang |
2. | Bizari Veneer & Saw Mills Ltd. | Vizari, Dambuk Dist. Dibang Valley |
3. | Arunachal Saw & Veneer Mills. | Jairampur, Dist. Changlang |
4. | Guna Saw & Veneer Mill. | Chowkham, DistLohit |
5. | Arunachal Plywood Industries. | Namsari, Dist. Lohit |
6. | Dibang Valley Timber Trade Ltd. | Bolung, DistDibang |
7. | Jenney Plywood Industries Ltd. | Bogapani, DistTirap |
8. | Node Timber CompanyVeneer. | P.O Deomali |
9. | Banderdewa Saw Mills and Plywood. | |
10. | Narottam Co-operative Industries. | Deomali Dist. Tirap |
11. | Arunachal wood based & Chemical Industries (p) Ltd. | Roing, Dist. Dibang Valley |
12. | Arunachal Forest Products (p) Ltd. | Kharsang, Miao, DistChanglang. |
13. | Nampong Plywood Ltd. | Nampong, Miao, DistChanglang |
Other Industries | ||
14. | Parsuram Cement Ltd. | Tezu, DistLohit Cement Industry |
15. | Arunachal Horticulture Processing Industries Ltd. | Jam, Jelly & Squash Industry |
16. | Donl Polo Petro Chemicals Ltd. | West Kameng Petro Chemical Industry |
17. | Slang Tea Industries (p) Ltd. | Oyan, Pashighat Dist. East Siang Tea Industry |
ART AND CRAFTS INDUSTRY
- WEAVING INDUSTRIES
- CANE AND BAMBOO INDUSTRY
- CARPET INDUSTRY
- WOOD CARVING INDUSTRY
- ORNAMENETS INDUSTRY
- OTEHR CRAFT INDUSTRY – paper making, smithy work, carpentry, pottery and ivory work are other crafts practiced by the people
- TOURISM INDUSTRY
Industrial Scenario of Arunachal
Gifted with hilly terrain covered with thick tropical and alpine forests, perennial rivers and wild flora and fauna, Arunachal is yet to tap its natural resources to its full potential for economic growth.
Languishing in industrial and social backwardness, the people look upon both the state and central governments to lift them from their rudimentary lifestyle to get in sync with modern life like that of their counterparts in Assam and rest of India.
Facing the existential threat from China, which claims the entire state as South Tibet, the Centre has taken up on a fast track basis the development of road and other connectivity projects across the 19 districts whose remote towns and villages are yet to be discovered by the rest of the world.
Here are some of the prospects Arunachal offers in terms of win-win situation for all stakeholders in the industrial space:
- India’s pent-up demand for electricity could be addressed by the state’s potential of 60,000 MW hydropower capacity.
Currently, several hydro power projects are allocated to privatesector players with capacity aggregating 41,702 MW. - The 21 km Harmuti (Assam) to Naharlagun road route becameoperational in April 2014; this has connected the state to the rest of India and provided huge trade and transport opportunities.
- Arunachal is home to 601 species of orchids or 52 per cent of the species of orchids known in India, indicating a huge potential for attracting visitors especially foreign tourists.
- The state’s textile industry, including carpet making, enjoysa huge appeal. The Arunachal carpets have received national and international fame for their creativity, design andquality.
- Arunachal with an area of 83,743 sq. km is the largest state in the Northeast of India.
Its diverse topography offers opportunities for non-timber based industries such as bamboo, cane and medicinal plants.
Huge untapped power potential
- Hydropower capacity:97.57 MW (2013-14); 100+ projects in the pipeline with a generation capacity of 47,000 MW.
- The hilly terrain and abundant rivers make the state a potential powerhouse of the northeast.
- The state’s hydropower potential is currently estimated at 60,000 MW, or approximately 25 per cent of India’s current power generating capacity.
- The central government has allocated 35,000 MW of hydroelectric projects to developers in the state.
Gateway to Southeast Asia
- The state’s location provides opportunities for international trade with Asian countries such as Myanmar, Bhutan and China.
- Textiles and handicrafts from the state are in demand in neighbouring countries.
- Recently, the state received approval for the first border trade along the Indo-Myanmar border.
Policy and fiscal incentives
- The state and central governments offer huge fiscal and policy incentives for the development of important sectors.
- The State Industrial Policy 2008 and Agriculture Policy 2001 support big push to economic activities.
- The central government’s North East Industrial and Investment Promotion Policy (NEIIPP) 2007 promotes investment.
- Ministry of Power has offered assistance to Arunachal Pradesh for fast-tracking 13 projects with 13,600 MW of capacity.
Sectoral contribution
At current prices, the gross state domestic product (GSDP) of Arunachal was US$ 2.2 billion in 2013-14.
The GSDP increased at a CAGR of 16.1% from 2004-05 to 2013-14.
In 2013-14, the state’s per capita income at current prices was US$ 1,511.1 compared to US$ 649.7 in 2004-05.
The per capita income had risen at a CAGR of 13.5% between 2004-05 and 2013-14.
The primary and tertiary sectors continue to dominate thecomposition of GSDP of Arunachal Pradesh.
In 2013-14, the primary sector contributed 43.1% to the state’sGSDP at current prices, followed by the tertiary sector (30.9%) and the secondary sector (26%).
At a CAGR of 18%, the primary sector has been the fastest growing sector among the three sectors from 2004-05 to 2013-14.
The growth was driven by agriculture,forestry and logging.
The tertiary sector expanded at a CAGR of 15.3% between 2004-05 and 2013-14.
The growth has been driven by trade, hotels, real estate, banking, insurance, transport,communications and other services.
The state’s economy is mainly agrarian based on theterraced farming of rice and the cultivation of crops such asmaize, millet, wheat, pulses, sugarcane, ginger, oilseeds,cereals, potato, and pineapple.
Foreign investment flow
According to the Department of Industrial Policy and Promotion (DIPP), cumulative FDI inflows from April 2000 toJanuary 2015 amounted to US$ 80 million.
In 2013-14, outstanding investments in the state were US$52.8 billion.
The biggest chunk of investment has been in electricitygeneration.
Of the total outstanding investments in 2013-14, the electricity sector accounted for around 93.8%, followed by the services sector (5.9%).
The central government has invested heavily in the hydro electricpower generation projects in Arunachal Pradesh.
New Industrial Policy of Arunachal Pradesh 2001
PART-I New Industrial Policy of Arunachal Pradesh 2001 Arunachal Pradesh is the largest state among the North Eastern States, having an area of 83743 Sq Km, with a population pf just above 1 million. Through it has successfully launched various socio-economic development programmes and though the literacy rate has also been rising, industrial activity is insignificant. Hence, the need for a well-defined Industrial policy. This policy resolution is the second of its kind and will be known as “The New Industrial Policy of Arunachal Pradesh 2001”. |
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PART-I New Industrial Policy of Arunachal Pradesh 2001 Arunachal Pradesh is the largest state among the North Eastern States, having an area of 83743 Sq Km, with a population pf just above 1 million. Through it has successfully launched various socio-economic development programmes and though the literacy rate has also been rising, industrial activity is insignificant. Hence, the need for a well-defined Industrial policy. This policy resolution is the second of its kind and will be known as “The New Industrial Policy of Arunachal Pradesh 2001”. |
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PART-II Policy Resolution § The State Government will encourage the establishment of industrial undertakings in the private and cooperative sectors for the sustainable development of the state. § Employment opportunities and gainful self-employment in industrial and allied sectors for the local populations of Arunachal Pradesh will be given priority. |
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§ Outside entrepreneurs may be allowed to hold land on lease for a period of 30 years, after which the lease may be renewed for a further period of 30 days. The consideration for the lease may be in the form of annual or lump sum payments or as equity. (The lease may be used as security for loans from financial institutions.) § Development of all industries will be encouraged. To begin with, the following industries will have priority. § Industries based on locally available raw materials. § Textiles (handlooms and power looms) and handicrafts. § Electronics and knowledge based industries. § Industries based on non- timber forest produce. § Infrastructure, such as power and communications. § Tourism § Medical services § Educational services A package of incentives for all eligible industrial units has been devised. The package is contained in Part-V. A programme for the development of infrastructure facilities, inter-alia including the establishment of Industrial Estates, Industrial Growth Centers, Integrated Infrastructure Development Centers, strengthening of existing Industrial Estates, Export Promotion Industrial Parks, Export Promotion Zones, Border trade, will be taken up in a phased manner. Reserves of minerals will be explored and exploited commercially through appropriate agencies. Government will make special efforts for development of local entrepreneurial, managerial and technical skills. For this purpose, special training and educational programmes, including women, will be put on a sound economic and commercial footing and ensure smooth flow of credit for new industrial projects, village industries and rural artisans. The District Industries Centers and financial institutions will work in close cooperation. There will be no licensing requirements for industry save as may be provided by any law or Central Government policy. |
PART-III Administrative Measures § State Level Empowered Committee : A State Level Industrial Empowered Committee comprising of the concerned Secretaries and representatives from banking and financial Institutions will be formed to grant the requisite clearances and facilitate the establishment of industries from a single window. This Empowered Committee will be headed by the Minister of Industries and will meet as often as necessary. § Strengthening of District Centers : The Government will strengthen the DICs with adequate and basic facilities. Each DIC will have an Udyog Sahayak Cell to guide entrepreneurs in the setting up of project report and arrangement of finance for the projects. There will also be a women’s cell in each DIC to give special attention to the women entrepreneurs. A data bank will also be created in each DIC for the benefit of the entrepreneurs. The District Level Industrial Advisory Boards will be reconstituted for monitoring the working of the District Industries Centers. § Rural Non-Farm Sector : NABARD has identified 10 sectors for development, which include sectors like Agriculture, Fish rearing and processing, Rural Retail Trade, Sericulture & Silk Textile Fiber products, Construction, Small plantation products, Handloom, Handicrafts products in cane & Bamboo and wood. These activities are to be developed for creation of additional employment in the rural areas. All relevant Departments will be associated in the implementation of these schemes. § Industrial Sickness : A package for the revival of sick industries in the SSI and Tiny sector will be devised by the Industries Department. § Public Sector Policy : The State Government will gradually vacate economic space for the private and cooperative sectors and the public and state sectors will be economic players only where absolutely necessary. § Women Entrepreneurs : To generate employment among women and to encourage women entrepreneurs, the Government will reserve 33 percent of industrial sheds, development plots in Industrial Area / Estate / Growth Centre etc for women. § Registration of SSI Units : In order to speed up the SSI Registration process, the JDI / DDI / ADI will be empowered to register the SSI units. A single window service cell will be set up for assisting entrepreneurs to get all required technical project or activity in the district. Units fulfilling all formalities of registration will be given provisional or permanent registration by the District Industries Centres / Directorate of Industries immediately. |
PART-IV Date of effect, definition and eligibility criteria. Date of Effect : The New Industrial policy of the Government of Arunachal Pradesh will come into effect from the date of notification of this policy. Eligibility : New registered units set up after the date of the notification of the policy, or which started production after 1 April 2000 and existing registered units, which have undertaken expansion, modernization or diversification, or which have not completed five years of production as on 1 April 2000 will be eligible for the package of incentives. All units must be registered . Existing units that have not completed five years of commercial production as on 01.04.2001 are also eligible for the incentives scheme. |
Important facts about Arunachal Pradesh
Area and Population | 1. Area 83,743 Sq.Km. |
2. Population 1,091,117(2001 Census) | |
Administrative Set-Up. | 1. District |
2. Sub-Division 36 | |
3. Circle 149 | |
Industry | 1. Medium Industries 17 |
2. Small Scale Industries 2526 | |
3. District Industries Centre/Sub- DIC 13 | |
4. Craft Centre/Weaving/Knitting Centre 76 | |
5. Sericulture Demonstration Centre 25 | |
6. Govt. Emporia 17 | |
Power Availability | 1. Hydro 39.52 MW |
Communication | Telephone, STD, ISD, Telex & fax facilities available. Helicopter service is available form Guwahati to Itanagar Capital Complex from Itanagar to Pasighat, Roing, Mohanbari, Dambuk, Namsai, Tezu, Tyingkiong, Memo, Khonsa, Ziro, and Daporijo. |
ARUNACHAL PRADESH INDUSTRIAL DEVELOPMENT
AND FINANCIAL CORPORATION (APIDFC) Introduction : Arunachal Pradesh Industrial Development and Financial Corporation Ltd. (APIDFC) was incorporated in the Year 1978 as a fully owned company of the Government of Arunachal Pradesh under the Companies Act, 1956 for promotion of industries in the State. It is performing the twin role of State Industrial Development Corporation and State Financial Corporation. Functions and Objectives :
Development of Infrastructure Facilities : One of the main objectives of setting up of APIDFC is to develop infrastructure facilites for promotion of industrial development in the State. However, APIDFC could not take up the activities due to the fact that the State Department of Industries is handling all infrastructure development activities like establishment of industrial estate/growth centre, export promotion industrial park and integrated infrastructure development centres. The State Govt. has been requested to hand over all such activities to APIDFC as is being done in other SIDCs. Industrial Promotion : Despite being rich in natural resources and even after the implementation of various development programmes in the state during the five year plans, the level of economic development in Arunachal Pradesh continues to be very low compared with most of the other states of the country. The major factors that have impeded the industrial development in the state are :
A study of the resource availability scenario, climatic conditions and environmental opportunities indicates the following thrust area for industrial development :
Inspite of all the inherent bottlenecks and constraints for industrial development in the state, APIDFC promoted a wide spectrum of projects covering various industrial and service sectors like weaving and knitting, saw mill, plywood manufacturing, pharmaceuticals, hotels, transport etc. FINANCIAL OPERATIONS : Authorised and paid up share capital : The authorised capital of APIDFC is Rs.600 lakhs and the paid-up capital is Rs. 162.50 lakhs as on March 31, 1999. The Govt. of Arunachal Pradesh is holding the entire equity of Rs. 162.50 lakhs. Performance as on March 1999 : At the end of March 1999, APIDFC has sanctioned term loan aggregating Rs.815.44 lakhs to 145 units against which disbursement was made to the tune of Rs.806.83 lakhs to 144 units. The following are the details of the last 5 years : (RS. in lakhs)
Recovery of dues : Low recovery and weak capital base of the Corporation have impeded the performance in sanction and disbursement. Rising NPAs have been a matter of concern to the Corporation. To reduce NPAs the Corporation is encouraging one time settlement of dues of the borrowers whose loan accounts have become sticky and remained doubtful for years together. Though some of the sections of the SFCs Act, 1951 have been made applicable in respect of the Corporation to effect recovery, application of the sections has not yielded the desired result due to lack of a suitable buyer. Details of the recovery performance of the Corporation in the last five years are as under :
APIDFC has two subsidiary companies viz. Parasuram Cement Ltd., a 30 TPD Cement project at Tezu, Lohit District and Arunachal Horticultural Processing Industries Ltd,.a 5 TPD fruit processing project at Nigmoi, Along, West Siang. The commercial operations of both the companies have been suspended due to continuous loss incurred by these companies. Agency activity : Restructuring : In the year 1997, the Corporation utilised the services of Tata Consultancy Services (TCS) to carry out a study on both operational and financial review and redesign of the Corporation so as to improve its performance. Accordingly TCS prepared a detailed Corporate Restructuring Report. The report is already with the Govt. for consideration. The state government has also constituted a high level committee in this regard. Joint Venture Project : The Corporation has promoted a joint venture hotel project at Itanagar with Indian Tourism Development Corporation under the name of Donyi Polo Ashok Hotel Corporation Limited. Incentives for industries : The following incentives are available in the state : CENTRAL SUBSIDIES :
STATE SUBSIDIES :
@ 7.5% to Co-operative venture and large and medium industries.
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