industrial estates – Arunachal Pradesh PCS Free Notes

Arunachal Industrial Policy

October 24, 2017September 17, 2024 by rawan239

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.

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.

Budgets of Arunachal Pradesh

October 24, 2017September 17, 2024 by rawan239

Main Features of budgets of Arunachal Pradesh

Constitutional Provision of Budget of State

As per Article 202 of the Constitution of India the Governor of a State shall, cause to be laid before the House or Houses of the Legislature of the State a Statement of the estimated receipts and expenditure of the State for a financial year. This estimated statement of receipt and expenditure for a financial year named in the Constitution as the “Annual Financial Statement” is commonly known as “Budget”

A-202 Annual Financial Statement

The Governor shall in respect of every financial year cause to be laid before the House or Houses of the Legislature of the State a statement of the estimated receipts and expenditure of the State for that year, in this Part referred to as the “annual financial statement”.
The estimates of expenditure embodied in the annual financial statement shall show separately—
1. the sums required to meet expenditure described by this Constitution as expenditure charged upon the Consolidated Fund of the State; and
2. the sums required to meet other expenditure proposed to be made from the Consolidated Fund of the State; and shall distinguish expenditure on revenue account from other expenditure.
The following expenditure shall be expenditure charged on the Consolidated Fund of each State—
the emoluments and allowances of the Governor and other expenditure relating to his office;
the salaries and allowances of the Speaker and the Deputy Speaker of the Legislative Assembly and, in the case of a State having a Legislative Council, also of the Chairman and the Deputy Chairman of the Legislative Council;
debt charges for which the State is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and the service and redemption of debt;
expenditure in respect of the salaries and allowances of Judges of any High Court;
any sums required to satisfy any judgment, decree or award of any court or arbitral tribunal;
any other expenditure declared by this Constitution, or by the Legislature of the State by law, to be so charged.

A- 203 Procedure in Legislature with respect to estimates

So much of the estimates as relates to expenditure charged upon the Consolidated Fund of a State shall not be submitted to the vote of the Legislative Assembly, but nothing in this clause shall be construed as preventing the discussion in the Legislature of any of those estimates.
So much of the said estimates as relates to other expenditure shall be submitted in the form of demands for grants to the Legislative Assembly, and the Legislative Assembly shall have power to assent, or to refuse to assent, to any demand, or to assent to any demand subject to a reduction of the amount specified therein
No demand for a grant shall be made except on the recommendation of the Governor.

A- 204 Appropriation Bills

(1) As soon as may be after the grants under article 203 have been made by the Assembly, there shall be introduced a Bill to provide for the appropriation out of the Consolidated Fund of the State of all moneys required to meet—

the grants so made by the Assembly; and
the expenditure charged on the Consolidated Fund of the State but not exceeding in any case the amount shown in the statement previously laid before the House or Houses.

(2) No amendment shall be proposed to any such Bill in the House or either House of the Legislature of the State which will have the effect of varying the amount or altering the destination of any grant so made or of varying the amount of any expenditure charged on the Consolidated Fund of the State, and the decision of the person presiding as to whether an amendment is inadmissible under this clause shall be final.

(3) Subject to the provisions of articles 205 and 206, no money shall be withdrawn from the Consolidated Fund of the State except under appropriation made by law passed in accordance with the provisions of this article.

A- 205 Supplementary, additional or excess grants

The Governor shall—

if the amount authorised by any law made in accordance with the provisions of article 204 to be expended for a particular service for the current financial year is found to be insufficient for the purposes of that year or when a need has arisen during the current financial year for supplementary or additional expenditure upon some new service not contemplated in the annual financial statement for that year, or
if any money has been spent on any service during a financial year in excess of the amount granted for that service and for that year,cause to be laid before the House or the Houses of the Legislature of the State another statement showing the estimated amount of that expenditure or cause to be presented to the Legislative Assembly of the State a demand for such excess, as the case may be.
1. The provisions of articles 202, 203 and 204 shall have effect in relation to any such statement and expenditure or demand and also to any law to be made authorising the appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure or the grant in respect of such demand as they have effect in relation to the annual financial statement and the expenditure mentioned therein or to a demand for a grant and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure or grant.

A- 206 Votes on account, votes of credit and exceptional grants

Notwithstanding anything in the foregoing provisions of this Chapter, the Legislative Assembly of a State shall have power—

To make any grant in advance in respect of the estimated expenditure for a part of any financial year pending the completion of the procedure prescribed in article 203 for the voting of such grant and the passing of the law in accordance with the provisions of article 204 in relation to that expenditure;
To make a grant for meeting an unexpected demand upon the resources of the State when on account of the magnitude or the indefinite character of the service the demand cannot be stated with the details ordinarily given in an annual financial statement;
To make an exceptional grant which forms no part of the current service of any financial year; and the Legislature of the State shall have power to authorise by law the withdrawal of moneys from the Consolidated Fund of the State for the purposes for which the said grants are made.
The provisions of articles 203 and 204 shall have effect in relation to the making of any grant under clause (1) and to any law to be made under that clause as they have effect in relation to the making of a grant with regard to any expenditure mentioned in the annual financial statement and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure.

Arunachal Pradesh State Budget of Arunachal Pradesh

The Gross state domestic product is estimated to be Rs 21,414 crores in 2016-17, growing from a level of Rs 11062.69 crores five years ago.
There is a slow but perceptible shift of economic activity from the primary sector to the tertiary sector in the last few years. Nonetheless, the primary sector contributed to 38.21% of GSDP at constant prices, while the tertiary sector contributed to 40.28% of GSDP.
The Share of Central taxes grew from actual receipt of Rs 7075.58 crores in 2015-16 to Rs 8388.30 crores in revised estimates of 2016-17.
The state’s own tax revenue in the revised estimates of 2016-17 was Rs 650.63 crores as against actual receipt of Rs 535.07 crores in 2015-16, growing at 21.59%. Nearly 94% of the tax revenue was collected by the Tax and excise department.
The non-tax revenue receipt in the revised estimates of 2016-17 is estimated at Rs 506.79 crores as against an actual collection of Rs 392.12 crores in 2015-16, showing a growth of 29.2%.
The fiscal deficit targets laid out in the Fiscal Responsibility and Budget Management Act 2006 and state had a fiscal deficit of 0.4% of GSDP in revised estimates of 2016-17, which is well within the 3% obligation as per the FRBM Act. For the next financial year, the fiscal deficit target of the state is 2.83% of GSDP.
The outstanding borrowing and debt liability of the state was pegged at 22.26% of GSDP in 2015-16 which is estimated to be 21.94% of GSDP in the revised estimates of 2016-17, which is well below the prescribed norm of 25%.
The underpinning philosophy of the budget draws upon the following 15 broad themes in Arunachal Pradesh:

Enhance transparency through governance reforms.
Empower the youth and squarely address the twin challenge of deficit in skills and jobs
Transformation of rural farm economy
Unlock the latent potential of land
Introducing policy measures which stimulates entrepreneurship
Public investments to have a balanced regional spread
Overhaul the educational system in the state
Create an effective and affordable health services delivery model
Create a social security net for the elderly , widows and the disabled
Take measures for women empowerment
Bridge the infrastructure deficit.
Revitalize the hydro power sector and tourism
Augment the internal resource generation capacity.
Effective Law and Order management
Follow a Sustainable growth path in harmony with environment

Major Points

Governance Reforms

The Budget Estimates of 2017-18 has done away with the distinction of Plan and Non Plan and classifies the receipts and expenditure only in Capital and Revenue heads
To harmonize the functioning of the Planning and Finance department into an integrated Department of Finance and Investments headed by the Development Commissioner, with three different wings: Investment and Planning division, Budget division and Economic Affairs division. This will help in developing a holistic perspective of planning, resource mobilization and expenditure.
The Centrally sponsored schemes will be implemented on the Public Financial Management System platform. The Finance department will make online transfers of money to the current accounts of concerned department opened for each Centrally Sponsored Scheme expeditiously and the departments in turn will transfer money directly to the bank accounts of beneficiaries for beneficiary oriented schemes. This will be a path breaking reform in streamlining the manner in which CSS schemes are currently administered and usher in greater simplicity in transactions as well as transparency.
The trinity of JAM – Jandhan, Aadhar and Mobile will be used for delivery of citizen services and moving towards a cashless and paperless economy–over 13 lakh bank accounts in Arunachal Pradesh of which nearly 2.2 lakh are Prime Minister Jandhan Yojana accounts. Nearly 1.4 lakh bank accounts are seeded with Aadhar
E Office will be made fully functional within this financial year for all departments in the Secretariat and steps will be initiated for ushering in the E office platform in the districts and the Directorates.
A computerized human resource management system will be introduced for all government employees which will integrate details of salaries, deductions, loans, increments etc.
Computerization of treasuries will be completed this year and an integrated on line Budget and expenditure management system will be rolled out which will streamline the functioning of the finance department.
A Chief Ministers dashboard will be created on an electronic platform which will track progress of key projects, including budget announcements, across the state through a regular video conferencing interface with all Deputy Commissioners
Stipends of students, scholarships, old age pensions, salaries of teachers of SSA, RUSA and RMSA will be paid on a direct benefit transfer mode directly into their bank accounts.

Employment and Skills of Budgets of Arunachal Pradesh

To establish a Skill University in Arunachal Pradesh on a PPP framework.
Aim to train 9000 youth in the coming financial year under Pradhan Mantri Kaushal Vikas Yojana with minimum 70% employment guarantee and an outlay of Rs 24 crores. Four ITI’s will be made operational next year: at Sagalee, Ziro, Kanubari and Pangin. One model ITI will be established at Yupia with an outlay of Rs 2.5 crores.
Chief Minister’s Bunkar Yojana
Chief Minister’s Swalamban Yojana. A back ended 30% Capital investment subsidy will be provided for small and medium enterprises on loans ranging from Rs 10 lakh to Rs 1 crores excluding land and building.

Agriculture and allied Sectors of Budgets of Arunachal Pradesh

To achieve self-sufficiency in food grains: Rice, other coarse cereals and Pulses production by 2020 and total Rice sufficiency by 2023 from the present day deficit levels of 27%
To promote organic Agriculture movement by producing organic plant nutrients and other inputs to reduce external dependence.
To establish Four Tea & Rubber nurseries -Rubber Nurseries at Govt. Farm Kherem and Sonajuli and Tea nurseries at Govt. Farm Bolung and Jumlo to be under technical supervision of Agriculture Dept. A sum of Rs.10.00 cr is earmarked for this purpose during 2017-18.
An allocation of Rs 3 crores is being made under the Chief Minister’s Krishi Rinn Yojana.
A state level Agriculture Information Hub cum Farmers’ Hostel will be established at Naharlagun to serve as the node for knowledge and resource sharing for agriculture and allied sectors.This will become the central resource pool with information for farmers in both audio-visual as well as electronic mode. It will be equipped with state of the art agri-information devices for the farming community and also provide accommodation for farmers and Extension workers. An initial allocation of Rs 5 crores is being proposed for this purpose during 2017-18.
Establishment of State Horticulture Research and Development Institute (SHRDI) under Department of Horticulture at Itanagar in the year 2014 to provide sustained technical support for our farmers.
To give one time Corpus Fund of Rs. 5 crores to State Horticulture Research and Development Institute which will be utilized by the institute for core activities including revenue generating activities that aims at ultimately becoming self-sustaining in future.
To create new nurseries across different agro-climatic zones of the State. Four new nurseries including one for High Altitude Medicinal Plants will be established at Ziro, Lower Subansiri for temperate crops, Basar, West Siang for Sub-tropical crops and Namsai for tropical crops and at Tawang for medicinal plants. All four new nurseries will be managed by the SHRDI.
An initial outlay of Rs 5 crores is being proposed for the Chief Minister’s white revolution program to establish an integrated dairy development project in Lohit district

Unlocking the potential of Land

A land pooling policy will be notified which will make landowners partners in progress in key infrastructure and industrial development projects, while reducing the burden of land acquisition cost for the state

Industry and Private Investments of Budgets of Arunachal Pradesh

To roll out a new Industrial policy 2017
To develop Industrial estates in the foothill districts
To develop one food park at Tippi which will have common infrastructure facilities for investors including packaging, storage and processing

Balanced Regional Development of Budgets of Arunachal Pradesh

To develop Pasighat, Tezu and Bomdila as regional growth centres, which would have all facilities at the regional level for education, healthcare, employment generation, skilling and serve as economic growth hubs
To keep a provision of Rs 50 crores in the budget for socio economic development in the districts of Tirap, Changlang and Longding under DOTCL
To establish Chief Minister’s District Innovation and Challenge Fund, with a corpus of Rs 100 crores

Rural Transformation of Budgets of Arunachal Pradesh

The Rural Development department will be implementing the Mahatma Gandhi National Rural Employment Guarantee Act in rural areas of Arunachal Pradesh with a proposed outlay of Rs 270 crores
Under the RURBAN Mission, Tuting is being developed as a rural cluster through which rural areas would be provided with urban amenities. Nafra cluster will be taken up for implementation in the next financial year and an outlay of Rs 5 crores has been proposed for this scheme.
Rural road construction works are being undertaken across the state under Pradhan Mantri Gramin Sadak Yojana. This year, 16 roads have been taken up to cover 35 habitations, covering a length of 236 km. For the financial year 2017-18, we have set an ambitious target of covering 1000 km of rural roads and an outlay of Rs 450 crores has been proposed for this purpose

Education

A sum of 30 crores is being earmarked for Chief Minister’s Adhunik Shiksha Yojana to cover nearly 1500 classrooms under this program.
To allocate a sum of Rs 2 crores for completion of works of VKV Longding and a sum of Rs 10 crores for starting classes at VKV Mukto on a PPP basis
To establish an Education Hub at Tezu

Health

To make an allocation of Rs. 15 crores for procurement and installation of CT scan machines at Naharlagun and Pasighat
To allocate a sum of Rs. 10 crores for modernization of existing drug deaddiction centres at Pasighat, Tezu, Namsai, Changlang, Papum Pare, including for purchase of required medicines and equipment. A new drug deaddiction centre will be established at Khonsa.
The infrastructure and equipment of 5 zonal general hospitals will be upgraded at Bomdila, Tezu, Ziro, Aalo and Khonsa for which a provision of Rs. 25 crores is proposed.

Social security

To make an allocation of Rs. 60 crores under the Chief Minister’s Social security scheme and the benefit will be transferred to the beneficiary directly under the Direct Benefit transfer scheme.
To increase the honorarium of anganwadi workers to Rs. 4500 per month and for anganwadi helpers to Rs. 3000 per month to provide them adequate incentive for work
Under the integrated child protection scheme, six new juvenile homes are proposed to be constructed at Aalo, Bomdila, Changlang, Tezu, Roing, Yupia and an allocation of Rs. 6 crores is proposed

Infrastructure of Budgets of Arunachal Pradesh

A total length of the 2570.82 Km of National Highways/ State Road is being implemented under the Highway Programme of the Ministry of Road Transport & Highways, Government of India, of which our own PWD is executing 16 packages with a road length of 419.88 km, Ministry of Road transport and highway is executing 3 projects with a road length of 710.95 km, BRO is executing 22 packages with a road length of 717.78 km, NHIDCL is executing 25 packages with a road length of 722 km

Forest and environment

Arunachal Pradesh is one of the most richly endowed biodiversity zones of India. The rich forest cover, flora, fauna and wildlife are unique in the national context. Even as the state marches on the path of development, we must preserve, protect and nurture this habitat.
The Forest department undertakes programs under Project Elephant, Project tiger and Wildlife Habitat program at Pakke tiger reserve, D Ering wildlife sanctuary and Namdapha wild life sanctuary. A sum of Rs. 8.7 crores is being proposed for allocation for these programs.
U nder the National Forest Mission and Bamboo Mission, an allocation of Rs. 3.2 crores is being proposed.

Government servants

To introduce a Chief Minister’s Employee Housing Scheme under which employees can avail bank loan of upto Rs. 30 lakhs and will get an interest subsidy of 4% from government. This will entail a net interest rate of 4.5% and a doubling of housing loan entitlement

arunachal pradesh industries

October 3, 2017September 8, 2024 by PSC Notes

Arunachal pradesh industries:- Arunachal Pradesh has several small and medium scale industries based on forest products. The industries include plywood, rice mills, fruit preservation units and handicrafts. The state has its own mineral development and trading corporation which looks after the fair transportation and exploration of various minerals. The Corporation also gives an industrial shape to its mineral products. The state has 12 industrial estates, established across districts. To support industrial growth, the State Government has also notified integrated infrastructure development centres, industrial growth centres and industrial areas.

Key Industries are Arts and Crafts, weaving, cane and bamboo, carpet weaving, wood carving, ornaments, tourism and horticulture.

Arts and Crafts

Arunachal Pradesh has a rich tradition of Bamboo and Cane Handicrafts and also Wood Carving and Carpet Weaving. The products reflect the rich and varied culture of the tribes inhabiting this enchanting State and the products featured are representative of the wide range of Handicrafts produced in the State.

Handloom forms an integral part of the culture and tradition, which is reflected in the State’s apparels. Some of these are unique Handloom products in artists weaving and design. Most of the Women folk of the state have been engaged in Handloom sector treated as primary occupation. A wide variety of crafts such as weaving painting, pottery, smithy work, basketry, woodcarving etc. are found among the people of Arunachal Pradesh.

The Department of Textile & Handicraft(s) has been set-up to develop this sector to uplift the economic condition as well as to provide self employment opportunity to the Weaver and artisan of the State through various Development Schemes/Projects.

Cane & Bamboo

The traditional Cane Bamboo product are mainly available in the Districts of East Kameng. Papumpare, Changlang, Upper and Lower Subansiri, East and West Siang, Lohit and Dibang Valley which represents high premium on design, quality, local technology and focus cultural indentity. The famous cane cap & head gear are available for different tribe of the State. While carrying Basket, Marketing Basket, varieties of design & utility product viz. Cane chair, Cane Table, Cane Racks, Cane Cradle, Cane Murrah , Designer Cane Tray etc. available in different marketing outlet in the State as well as out side the State.

Wood Carving

The unique, and artistic indigenous wood carving articles are available of Tirap, Upper & West Siang, Lohit and Tawang.

It is practiced by very limited artisans / craftsman of the above mentioned districts, both passed out trainees form the Deptt. Craft center as well as traditional artisans.The main raw-materials used are locally available wood.

Traditional Male and Female Wooden figure are depicted as main subject, warriors / head hunters are popular in Tirap District Wood Carving, originally such wood carvings were used to decorate “MORANG” (Youths Dormitory ) & modernized as decorative collection items where as different types of Wooden Musk and goddess figure are depicted as main subject considering the cultural & religious value, which are popular in the district of Upper and East Siang , Lohit & Tawang.

Being promoted through Govt. Craft Centres with provision for training. Passed out trainees are engaged as production worker in departmental promotional schemes.

Traditional Ornament Products

Beads ornaments of various types are found in all over Arunachal Pradesh . However weaving or decorating small beads ornament are predominatory found in Tirap District. The unique beads ornaments and grass necklece products are mainly available in Tirap & Changlang districts which signify higher cultural and Traditional value.

The Beads ornaments making practiced by women folk , the main raw-material used in “GRASS BEADS” of very higher quality normally imported from other country .

All type of ornaments viz. Necklace Wrist band, Waist band , Head gear, earring are made with beautiful geometrical pattern used both by male and female.

Being promoted through Govt. Craft Centres while provision for training and passed out trainees are engaged as production worker.

Carpet

The carpet making is one of the important occupation in the districts of Tawang, West Kameng, Changlang, Upper Siang. The women folk are engaged in this trade. The Arunachal Pradesh’s carpet has been acclaimed to be of National & International repute by considering the quality of carpet weaving in different motive and design. The items produced are wall hanging , cushion pad, telephone pad, floor covering etc. These are being promoted through Govt. Craft Centre with provision for training. Passed out trainees are engaged as production worker in the industry.

Handloom

Arunachal Pradesh can be called store House of Handloom designs as its 20 major tribes and more then 100 sub-tribes has got unique and appealing Handloom designs. The products are , Skirt (Gale), Shirt (Galuk) , cotton shawl, side bag, curtain cloth etc, in different pricing pattern according to the quality, traditional value, motive and design. arunachal pradesh industries

Tourism

Arunachal Pradesh has tremendous scope for development of various types of tourism activities, such as Cultural tourism, Adventure tourism, Historical tourism, Wildlife tourism, Nature based tourism and Eco-tourism. Any developmental programme tapping the latent tourism potential of the state, need to be based on sound understanding of the ground realities and the general of basic infrastructure development.

Inspite of vast tourism potential, Arunachal Pradesh so long remained unexplored to the outside world due to general backwardness of the area in terms of low road length, absence of rail links and airstrips, remoteness and inaccessibility of the area, lack of infrastructural development which holds the progress of development in check and the imposition of Restricted Area Perrmit (RAP)/Protected Area Permit (PAP) and Inner Line Permit (ILP) system.

Industrial Policy

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.

Investors from outside the state will be encouraged to invest in the state. Hundred percent equity ownership of an industrial unit by entrepreneurs will be allowed for a maximum period of 30 (thirty) years by the end of which period such equity holding will be reduced to 49 percent, the remaining 51 percent will be held by a local Arunachal Tribal entrepreneur or a group of local tribal entrepreneurs or the state government, if it considers necessary to do so.
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

An Introduction to Arunachal Pradesh Economy

October 24, 2017September 7, 2024 by rawan239

An Introduction to Arunachal Pradesh Economy

Arunachal Pradesh – State profile

Covering an area of 83,743 sq km, Arunachal Pradesh is the largest state in the Northeast India.
The state is located in the extreme Northeastern corner of the country. It shares its border with the neighbouring countries of Bhutan in the West, China (Tibet) in the North and Northeast, Myanmar in the East and Southeast and the Indian states of Assam and Nagaland in the South.
Itanagar is the state capital. Arunachal Pradesh has 16 administrative districts.
Naharlagun, Tawang, Tezpur, Bomdila, Ziro, Pasighat and Tezu are the major towns in the state.
Brahmaputra is the major river flowing through the state. Other smaller rivers include Kameng, Subansiri, Lohit and Tirap.
The most commonly spoken languages are Assamese, Bengali and Hindi. English is the primary medium of education in the schools

Rich and varied agro-climatic conditions

Undulating topography and varied agro-climatic conditions offer vast potential for horticulture and growing a variety of fruits, vegetables, spices, aromatic and medicinal plants, flowers and mushroom.

Policy and fiscal incentives

The state offers a wide range of fiscal and policy incentives and assistance for businesses under the State Industrial Policy, 2008. Additionally, the state has sectorspecific policies for industries related to power and agriculture.

Facilitating industrial infrastructure

The state has 12 industrial estates, established across districts. To support industrial growth, the State Government has also notified integrated infrastructure development centres, industrial growth centres and industrial areas.

International trade opportunities

The geographic location of the state provides immense opportunities for international trade with the South Asian countries through its shared borders with Myanmar, Bhutan and China.

Key industries in Arunachal Pradesh

The resources, policy incentives and climate in the state support investments in mining and mineral products (including cement), tissue culture and floriculture, plantation crops (tea, rubber, etc.) and agro-based industries.
- The North Eastern Development Finance Corporation Limited is engaged in catalysing the industrial growth of the Northeastern region (including Arunachal Pradesh) by providing counselling, timely advice and assistance for building quality enterprises.
- The Department of Industries, Government of Arunachal Pradesh, is responsible for promoting industrial activities in the state to provide employment opportunities to the rural and urban people.
- The Department of Industries has set up district industries centres (DICs) and sub-district industries centres (sub-DICs) for the industrial development of small scale, tiny and village industries.
Key industries in Arunachal Pradesh
Art and crafts
Weaving
Cane and bamboo
Carpet weaving
Wood carving
Ornaments
Tourism
Horticulture
Saw mills and plywood

Employment profile of Arunachal Pradesh

The primary sector employs around 67.4 per cent of the total workforce in Arunachal Pradesh, followed by tertiary sector (23.9 per cent) and secondary sector (8.7 per cent).
Around 94 per cent of the state‟s population lives in the rural belt. Thus, agriculture is the main occupation of the people of Arunachal Pradesh.
Of the total workforce, 60.4 per cent are cultivators with self-owned land and only 5.1 per cent of the workforce falls in the agricultural labourer category.

Cereals, oil seed and sugarcane are the key agricultural products

In 2009-2010, total production of cereal crops was 325,000 tonnes, compared to 306,500 tonnes in the previous year.
Major cereal crops of the state are rice, maize, millet, wheat and pulses (pea, kidney-bean and black-gram).
Non-cereal crops include ginger, oil seed and sugarcane, apart from vegetables.

Road network

Arunachal Pradesh has a road density of 17.36 km per 100 sq km.
Six National Highways run through Arunachal Pradesh, connecting the state with the rest of India as well as the international borders with China (Tibet), Myanmar and Bhutan.

Airports and railways

In December 1995, the State Government introduced passenger flight services by nine-seat Dauphin helicopters to overcome the constraints posed by the hilly terrain.
Later a 23-seat MI-172 type helicopter had been added to the fleet, primarily to operate between Guwahati in Assam and Tawang in Arunachal Pradesh.
The service also connects 29 major towns including Naharlagun, Tawang, Ziro, Pasighat, Bomdila, Seppa, Daporijo, Along, Yingkiong, Roing and Tezu.
A greenfield airport has been proposed near Itanagar, for which environmental clearance has been received in April 2010. Ministry of Civil Aviation has also planned to operationalise airports at Daporijo and Tezu.
The nearest railway station is located at Harmoti in Assam, 23 km from Naharlagun and 33 km from Itanagar.

Industrial infrastructure

Arunachal Pradesh has 12 industrial estates located in different districts and spread over total area of 55.6 hectare. These industrial estates have been developed in land-areas ranging from 4,540 to 202,325 square metre, with the primary objective of growth and development of small scale industries.
In addition, the State Government has also notified integrated infrastructure development centres, industrial growth centres and industrial areas to support industrial growth.
The State Government has set up district industries centres (DICs) in all 16 districts. These DICs play a vital role in the industrial development by providing services to the entrepreneurs viz., identification of suitable schemes, preparation of project report, arrangement for providing required plant, machinery and raw-material, assistance in availing incentives and facilities provided by both central and state governments, liaison with all development departments and financial institutions to provide assistance to the prospective entrepreneurs.
Based on availability of resources, the State has identified thrust areas for industrial development:
Industries based on agricultural, horticultural and plantation produce.
Industries based on non-timber forest produce such as bamboo, cane (rattan), medicinal plants/herbs, aromatic grass, tea and coffee.
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 (such as ferro-alloys, cement, etc.)
Facilitation and development of industrial infrastructure including power, communications, etc., under public private partnership
Food processing industries.
Engineering and allied industries (rolling mill, steel mill, etc.).

State Industrial Policy, 2008

Aim: To facilitate and promote the growth of industry, employment and investment in the state.

Key initiatives:

To create an investment-friendly environment in the state for industrial growth in the private, joint and 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 the handloom and handicrafts industry.
To promote local investors through joint ventures with outside investors.
To encourage industrial units producing high value products.
To ensure fast-track clearance of industrial proposals

Hydro Power Policy – 2008

Objectives:

To harness hydropower potential of the state in a manner that is consistent with the provision of the Electricity Act, 2003 and the National Electricity Policy and other policies formulated in the Act.
To develop hydropower projects in eco-friendly manner causing minimum distress to the affected people.
To accelerate the pace of hydropower development through participation of both the central public sector undertakings and private power developers, as also by formulating public private partnership.
To provide for creation of social and development infrastructure through hydropower development.
To ensure proper rehabilitation and resettlement of people affected by projects in order to improve their living standards.
To create job opportunities for local tribal people specially for those affected by the project

Small Hydro Power (SHP) Policy, 2007

Aim: To facilitate and promote the growth of small hydro power plants and, thereby, increase employment opportunities in the state.

Key initiatives:

Private participation in development of SHPs with targeted incentives.
Formulation and notification of an action plan for SHP generation. The action plan to provide programmes for capacity addition and determine the extent of involvement of various stakeholders of State Government or agencies in the field.

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

Aim: To promote the Northeast region as an attractive investment region through concessions and incentives.

Key features:

Industries covered under this policy are eligible for incentives for a period of 10 years from the date of commencement of commercial production.
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 or advisory committee would oversee the implementation of the NEIIPP.
NEIIPP would not be applicable to peripheral activities such as preservation while in storage, cleaning, packing, re-packing, labelling or re-labelling, sorting, etc.
North Eastern Development Finance Corporation Ltd (NeDFI) to act as the nodal agency for disbursal of subsidies.
NEIIPP, 2007, has replaced the North East Industrial Policy, 1997

Agriculture Policy, 2001

Aim: To achieve higher economic growth and create job opportunities for the rural unemployed through agriculture and allied sectors.

Key initiatives:

Top priority to be accorded on increasing farmers‟ income.
Addressing problems related to shifting (jhum) cultivation.
Location-specific strategy development – area specific and differentiated strategy.
Convergence of allied activities by making a shift from a commodity approach to a system approach in agriculture.
Technology transfer.
Supply of inputs such as seed, fertiliser, pesticides, agri-tools and implements and credit to farmers at reasonable rates.
Facilitating private investment in agriculture, especially for establishing agro-based industries.
People‟s participation through formation of “self-help groups” and village committees at several levels.
Research and technology package for location-specific agricultural research based on identified agro-climatic zone.
Marketing infrastructure and techniques, especially for preservation, storage and transportation.
Priority on setting up agro-processing units in key production areas.
Market intervention scheme involving procurement by a notified agency to assure remunerative prices to farmers

Mineral-based industry

Arunachal Pradesh has considerable mineral reserves, which offers immense potential.
The state has reserves of coal at Bhalukpong; graphite at Tahila, Bopi and Khetabari; limestone at Hunli, Tidding, Menga and Pagin; marble at Hunli, Tezu, Pyuli and Dora; dolomite at Kaspi and Rupa; and lead and zinc at Shergaon.
These minerals are useful in the gasified form or in cooking, fertiliser plants, refractory units and calcium carbide manufacturing units.
The state‟s mining activities are managed by the Arunachal Pradesh Mineral Development and Trading Corporation Limited (APMDTCL ).
Parsuram Cements, a subsidiary of APMDTCL, is one of the oldest resource-based companies, based out of Lohit.

Agriculture and forest-based industries

Major agro- and forest-based industries in the state relate to tea, fruit, timber and plywood industries.
Non-timber based industries include bamboo, cane and medicinal plants.
The industry is characterised by many regional players; several units have been set up by Arunachal Pradesh Forest Corporation (APFC), a government organisation.
APFC has taken up a project on capacity building for production of bamboo-based industrial intermediates at Poma village near Itanagar.
The State Industrial Policy, 2008 of Arunachal Pradesh lists agriculture and non-timber forest produce-based industries as thrust sectors.

Textile

Textile is a grass-roots industry in Arunachal Pradesh and provides employment to mainly, women. Most of the units are home-based and have small scale of operations.
Carpet making is one of the important occupations in the districts of Tawang, West Kameng, Changlang and Upper Siang. The state‟s carpets have received national and international repute owing to their quality.
The carpet weaving industry is promoted through the Government Craft Centre.
The state has unique and appealing handloom designs from each of its tribes. The products include skirt (gale), shirt (galuk), cotton shawl, side bag and curtain cloth.

Key nodal agencies in Arunachal Pradesh

Department of Industries

The Department of Industries is the main executive and regulatory agency, functioning under the State Government. It oversees and monitors the over all industrial development activities in the state.
The department is engaged in various activities such as:

Registration of industries regulation and development of industries.
Providing finance to small scale and other industries.
Distribution of scarce and indigenous raw-materials to different industrial units.
Other industrial development related activities.

Arunachal Pradesh Industrial Development and Financial Corporation Limited (APIDFC)

APIDFC was incorporated under the Companies Act,1956, in August 1978, to promote and finance industries in Arunachal Pradesh.

Arunachal Pradesh Energy Development Agency (APEDA)

APEDA is the state designated agency (SDA) for implementation and enforcement of the Energy Conservation Act, 2001, in coordination with the Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India.
APEDA is also the state nodal agency for projects connected with clean development mechanism (CDM)

Arunachal Pradesh Khadi and Village Industries Board (APKVIB)

APKVIB was constituted by the Government of Arunachal Pradesh in 1989, with the mission to create employment opportunities in the non-farm sector in the rural areas, to promote saleable articles and support rural development to improve quality of life.
The industries under its purview include khadi (silk, cotton, woollen), minerals, forest- and agro-based industries, polymer and chemical, engineering and non-conventional energy, textile industry and service sectors.

North Eastern Development Finance Corporation Limited (NeDFI)

NeDFI was promoted by Industrial Development Bank of India (IDBI), Small Industries Development Bank of India (SIDBI), Industrial Finance Corporation of India (IFCI), Industrial Credit and Infrastructure Corporation of India (ICICI), Unit Trust of India (UTI), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC) and its subsidiaries and State Bank of India (SBI).
Incorporated in August 1995, NeDFI has its headquarter in Guwahati, Assam.
NeDFI provides facilities such as project and equipment finance, working capital finance, schemes for development of entrepreneurial skill and market development for products from the Northeast.

Power

Arunachal Pradesh had a total installed power capacity of 201.9 MW, under the state and central sector. While 83.3 MW of installed capacity was under state sector, 118.6 MW was under central sector.
- Hydro power is the major source of electricity generation in the state, contributing around 97.6 MW, followed by 67.4 MW of renewable energy resources and 36.9 MW of thermal power.
- Arunachal Pradesh has been focusing on developing its huge hydro power potential. The state has set up the Department of Hydro Power Development to oversee, coordinate and monitor hydro power development.
- The Government of Arunachal Pradesh has signed a memorandum of understanding (MoU) with central sector power generators and integrated power developers (IPD) for the development of 135 hydroelectric power plants, with an aggregate capacity of 25,722 MW