Arunachal Industrial Policy

Arunachal Industrial Policy

Objectives:

The Industrial Policy, 2008 of Arunachal Pradesh is formulated to achieve the following objectives:

  • To create an investment-friendly environment in the State for industrial growth in the private/ joint venture / cooperative sectors for sustainable economic development of Arunachal Pradesh.
  • To generate employment opportunities in the State.
  • To make Arunachal Pradesh a preferred destination for outside investors.
  • To encourage local entrepreneurs to set up enterprises based on locally available raw materials.
  • To promote export oriented industrial units.
  • To take steps to promote hand loom and handicrafts.
  • To promote local investors through joint ventures with outside investors.
  • To encourage industrial units producing high value – low volume products.
  • To ensure fast track clearance of industrial proposals.Arunachal Industrial Policy

Focus Industries

Focus Industries will be

  • Industries based on agricultural, horticultural and plantation produce.
  • Industries based on non-timber forest produce: bamboo, cane (rattan), medicinal plants / herbs, aromatic grass, tea, coffee etc.
  • Industries based on locally available raw materials except timber.
  • Textiles (handlooms and power looms), Handicrafts and Sericulture
  • Electronics and IT based Enterprises.
  • Mineral Based Industries ( eg. Ferro-alloys, Cement Plant etc.).
  • Facilitation and Development of Industrial Infrastructure including Power, Communications etc. under Public Private Partnership (PPP).
  • Food Processing Industries.
  • Engineering and Allied Industries (Rolling Mill, Steel etc.).
  • Tourism (tourism infrastructure including resorts, hotels, restaurants etc.).

Main Features of Arunachal Industrial Policy

  • The State Government shall make special efforts to create proper infrastructure by promoting establishment of Industrial Estates, Industrial Growth Centres, Integrated Infrastructure Development Centres, Small Industries Cluster Development, Export Promotion Industrial Parks, Export Promotion Zones, Special Economic Zone (SEZ), Food Parks; strengthening of existing Industrial Estates, Border Trade Centres, Industrial Cluster Development etc,.
  • Entrepreneur(s)/ a group of entrepreneurs/ consortium of industries will be allowed cent percent equity holding / ownership of their industrial unit(s)/enterprises for a period of 50 years.
  • Entrepreneurs/ Investors shall be allowed to hold the land on lease for a period of 50 years on a predetermined lease rent. The consideration for lease of land may be in the form of annual or lump sum payments or equity participation.
  • State Government shall provide 99% Sales Tax (VAT) / Entry Tax exemption to eligible industrial units on import of actual raw materials, machineries and equipments into Arunachal Pradesh as also on sale of finished goods in the State for a period of 7 years from the date of commencement of commercial production.
  • At present, trading licenses are issued only to indigenous local traders. The present policy will continue to hold good for small scale industries/enterprises. However, under this policy the trading license will be issued to all entrepreneurs including outside investors for the industries/ enterprises which involve investments of minimum Rs 5.00 Crore in plant and machineries, whereas in case of service sector the minimum investment on equipments should not be less than Rs.2.00 Crore to qualify for obtaining trading license.
  • State Government Departments and other state Government controlled bodies and organizations, while making purchases will give price preference to the products manufactured by registered Micro and Small Enterprises
  • The Department of Industries shall be the Nodal Department for quality control of all industrial products in the state and for the products notified by the union government from time to time.
  • Special incentives will be provided to eligible Food Processing Units as additional State Capital Investment Subsidy @ 20 % subject to a ceiling of Rs.25.00 lakhs.
  • The financial institutions’ under the control of the State Government will be revamped and the District Industries Centers and financial institutions will work in tandem to ensure smooth flow of credit to new projects, existing industrial units for modernisation/ expansion/ diversification, village industries and rural artisans.
  • A State Level Industrial Empowered Committee headed by the Chief Secretary will be constituted, which will comprise the Commissioners/ Secretaries of the concerned administrative department and representatives from banking and financial institutions as members for smooth passage of various clearances through a Single Window Clearance System.

 

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