Largest hydropower potential in India. Railways as a new means of transport. Orchid paradise. Carpet making. Largest state in Northeast
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- Annabella Barton
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3 Largest hydropower potential in India India s pent-up demand for electricity could be addressed by the state s potential 60,000 MW hydropower capacity. Currently, several hydro power projects are allocated to private sector players with capacity aggregating 35,031.5 MW. Railways as a new means of transport The 21 km Harmuti (Assam) to Naharlagun route became operational in April 2014; this has connected the state to the rest of India and provided huge trade and transport opportunities. Orchid paradise Arunachal Pradesh 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 tourists, especially foreign ones. Carpet making The state s textile industry, including carpet making, enjoys a huge appeal. The state s carpets have received national and international fame for their creativity, design and quality. Largest state in Northeast Arunachal Pradesh, 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. Source: The India Environment Portal, Economic Times, Arunachal Pradesh Government website, Aranca research
4 Hydropower generation capacity: 97.57MW High Growing economic demand growth The GSDP increased at a compound annual growth rate (CAGR) of 16.1 per cent* between and , faster than India s 15.0 per cent* growth. The state has considerable mineral reserves that offer huge potential. Due to its topography, the state has varied agro-climatic conditions suitable for horticulture of flowers and aromatic and medicinal plants. 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 these activities. Additionally, the central government s North East Industrial and Investment Promotion Policy (NEIIPP), 2007, promotes investment. Advantage Arunachal Pradesh Huge hydropower potential 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. International trade opportunities The state s location provides opportunities for international trade with South 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 haat along the Indo- Myanmar border. Pipeline 100+ projects having a generation capacity of 47,000 MW *Calculated in Indian Rupee terms
5 Itanagar, Naharlagun, Tawang, Rupa, Bomdila, Bhalukpong, Seppa, Ziro and Daporijo are some of the major towns in the state. Brahmaputra is the major river flowing through the state. Other smaller rivers include Kameng, Subansiri, Lohit, Tirap and Siang. Parameters Capital Arunachal Pradesh Itanagar Source: Maps of India Located in the Northeast of India, Arunachal Pradesh is the largest of the seven sister states. It shares borders with the neighbouring countries of Bhutan in the west, China (Tibet) in the north and northeast and Myanmar in the east and southeast. The Indian states of Assam and Nagaland border it in the south. The most commonly spoken languages are Assamese, Bengali and Hindi. English is the official language and primary medium of education in schools. Geographical area (sq km) 83,743 Administrative districts (No) 16 Population density (persons per sq km) 17 Total population (million) 1.4 Male population (million) 0.71 Female population (million) 0.67 Sex ratio (females per 1,000 males) 938 Literacy rate (per cent) Source: Government of Arunachal Pradesh website, ( Ministry of Development of North Eastern Region, Census 2011
6 Parameter Arunachal Pradesh All States Source Economy GSDP as a percentage of all states GSDP Average GSDP growth rate (%)* Per capita GSDP (US$) 1, , Physical Infrastructure Planning Commission Databook, June 2014, current prices, Planning Commission Data Book, June 2014, current prices, from to Planning Commission Databook, June 2014, current prices, Installed power capacity (MW) ,488.3 Central Electricity Authority, as of June 2014 Wireless subscribers (No) 9,541,874^ 910,157,975 Broadband subscribers (No) 7,781 65,330,000 National Highway length (km) 2,302 79,116 Telecom Regulatory Authority of India, as of June 2014 Ministry of Communications & Information Technology, as of May 2014 National Highways Authority of India and Telecom Regulatory Authority of India, as of March 2013 Airports (No) 5^^ 133 Airports Authority of India *Calculated in Indian Rupee terms, ^Combined figures for the Northeast states comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura, ^^Non operational
7 Parameter Arunachal Pradesh All States Source Social Indicators Literacy rate (%) Census 2011 Birth rate (per 1,000 population) Investment SRS Bulletin ( September 2013 Outstanding investments (US$ billion) ,414.2 CMIE ( ) SRS: Sample Registration System
8 At current prices, the Gross State Domestic Product (GSDP) of Arunachal Pradesh was US$ 2.2 billion in Arunachal Pradesh s GSDP increased at a CAGR of 16.1 per cent* from to This was faster than India s total GDP growth of 15.0 per cent*. 778 GSDP of Arunachal Pradesh at current prices (in US$ million) CAGR 16.1%* 1,194 1,233 1,576 1,976 2,265 2,226 2,220 Source: Planning Commission Databook, June 2014 *Calculated on INR figures
9 At current prices, the Net State Domestic Product (NSDP) of Arunachal Pradesh was US$ 2.1 billion in NSDP of Arunachal Pradesh at current prices (in US$ million) Arunachal Pradesh s NSDP at current prices expanded at a CAGR of 16.3 per cent* between and This was faster than India s total NDP growth of 15.0 per cent* CAGR 16.3%* 1,094 1,127 1,442 1,830 2,099 2,066 2,059 Source: Planning Commission Databook, June 2014 *Calculated in Indian Rupee terms, CAGR - Compound Annual Growth Rate
10 In , the state s per capita GSDP at current prices was US$ 1,511.1 compared to US$ in The per capita GSDP increased at a CAGR of 13.5 per cent* between and Per capita GSDP (in US$) CAGR 13.5%* ,177 1,441 1,615 1,551 1,511 Source: Planning Commission Databook, June 2014 *Calculated in Indian Rupee terms, Note: CAGR - Compound Annual Growth Rate
11 The state s per capita NSDP in was US$ 1,401.5 compared to US$ in Per capita NSDP (in US$) The per capita NSDP increased at an average rate of 13.7 per cent* between and CAGR 13.7%* ,077 1,335 1,497 1,439 1,402 Source: Planning Commission Databook, June 2014 *Calculated in Indian Rupee terms, Note: CAGR - Compound Annual Growth Rate
12 The primary and tertiary sectors continue to dominate the composition of GSDP of the Northeastern state. In , the primary sector contributed 43.1 per cent to the state s GSDP at current prices, followed by the tertiary sector (30.9 per cent) and the secondary sector (26.0 per cent). At a CAGR of 18.0 per cent*, the primary sector has been the fastest growing sector among the three sectors from to Growth was driven by agriculture, forestry and logging. The tertiary sector expanded at a CAGR of 15.3 per cent* between and Growth has been driven by trade, hotels, real estate, banking, insurance, transport, communications and other services. The secondary sector increased at a CAGR of 14.4 per cent* between and GSDP composition by sector 33.0% 30.9% 15.3%* 29.5% 37.4% CAGR* 14.4%* 18.0%* 26.0% 43.1% Primary Sector Secondary Sector Tertiary Sector Source: CMIE *Calculated in Indian Rupee terms, CAGR - Compound Annual Growth Rate
13 Cereals, oil seeds, ginger, potato, sugarcane and pineapple are some of the key agricultural products of the state. In , total food grain production in the state increased 8.6 per cent to 362,000 metric tonnes from 334,000 metric tonnes in The state received a commendation award for food grain production in category III during Total paddy (rice) production in the state was nearly 255,000 metric tonnes and total cereals production in the state was ~91,000 metric tonnes in Major cereal crops of the state are rice, wheat, maize and millet. Crop Annual production ( 000 metric tonnes) Flowers Paddy (rice) 255.0* Citrus Cereals 91.0* Pineapple 67.6 Ginger 57.0 Vegetables 37.6 Apple 31.0 Banana 18.2 Tomato 14.9 Cabbage 11.6 Cauliflower 8.0 Source: NEDFI Databank, Ministry of Agriculture, Indian Horticulture Database , National Horticulture Board, Final Estimates , Krishi Karman Awards Booklet , *
14 According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI inflows from April 2000 to February 2014 amounted to US$ 79 million*. In , outstanding investments in the state were US$ 52.8 billion. Of the total outstanding investments in , the electricity sector accounted for around 93.8 per cent, followed by the services sector (5.9 per cent). Break up of outstanding investments by sectors ( ) (US$ million) 3, Electricity Services *FDI inflows for RBI s (Reserve Bank of India s) Guwahati-region, which includes Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. 49,510 Manufacturing Source: CMIE
15 state with rest of India. Under Arunachal Pradesh Package for Roads & Highways, in 2009, the central government approved projects for improving 1,472 km of national highways and 847 km of state roads. This is under the Prime Minister s package. In October 2013, the central government cleared the 157 km Miao-Vijaynagar project at a cost of US$ 27 million to be completed in four years. Source: Maps of India Arunachal Pradesh has about 12,169 km of major district roads. The state had a road density of km per 100 sq km, as of March 2011, while the national average was 115 km per 100 sq km. Chief Minister Nabam Tuki has announced that all districts, including the far flung areas, would be interconnected by mid through good quality roads. As of September 2013, about 2,302 km of national highways run through Arunachal Pradesh, connecting the As per the Special Accelerated Road Development Programme for North Eastern region (SARDP-NE), in order to boost growth momentum, 10,141 km of roads are to be redeveloped to improve connectivity of the district headquarters and the remote places of the Northeast region with state capitals. Of the total 10,141 km of roads, the Union Road Transport and Highways Ministry recently approved 6,418 km. The remaining 3,723 km have been approved for preparation of a detailed project report that is scheduled to be completed by The SARDP-NE envisages providing road connectivity to all district headquarters in the Northeast region with minimum two-lane highway standards.
16 Under the SARDP-NE, the strategic 2,400 km Trans- Arunachal Highway Project (National Highway 229), which would link Tawang to Mahadevpur, has been announced. The project is expected to be completed by In January 2014, four more road upgradation projects the Hunli-Anini, Joram-Koloriang, Akajan-likabali-Bame and Khupa-Hawai sections were announced at an estimated cost of US$ million. Road infrastructure Road length (km) National Highways (km) 2,302 Major district roads 12,169 Rural roads 5,455 Total 21,555 The rural development ministry has approved the construction of 95 roads and 31 long-span bridges in the state, covering a length of 1,190 km at a cost of US$ 150 million. Source: Telecom Regulatory Authority of India, The Hindu, Arunachal Pradesh State Action Plan on Climate Change, Projects Monitor, Government of Arunachal Pradesh, Times of India, Ministry of Road Transport & Highways An amount of US$ 25.2 million has been kept aside to construct cement concrete roads with proper drainage across 10 districts. Construction of a bypass road from Naharlagun to Itanagar via Jully has been approved to reduce traffic congestion between Naharlagun to Itanagar.
17 In the 1980s, air services were provided by Vayudoot, a JV of Indian Airlines and Air India, which ceased operations in In December 1995, the state government introduced passenger flight services with a fleet of two Pawan Hans helicopters: a nine-seater Dauphin helicopter and a 24- seater MI-172 type helicopter. Initially operating on the Naharlagun (close to Itanagar) to Guwahati and Mohanbari (both in Assam) route, the service currently also connects major local towns, including Tawang, Ziro, Pasighat, Daporijo, Along, Yingkiong, Roing, Tezu, Khonsa, Changlang, Namsai and Anini. A proposed greenfield airport near the capital, Itanagar, received environmental clearance in April The Ministry of Civil Aviation has also planned to operate airports at Tezu, Pasighat, Along, Daporijo and Ziro. The state s capital, Itanagar, was put on the country's railway map in April The state government plans to extend the existing railway connectivity and connect the Upper Assam areas with Arunachal Pradesh. Domestic airport^ Inter-state helicopter service* Source: Airports Authority of India; Department of Civil Aviation, Government of Arunachal Pradesh. North East Frontier Railway (NEFR) ^Non-operational *Major route
18 As of June 2014, Arunachal Pradesh had a total installed power generation capacity of MW. It consisted of MW under central utilities, MW under state utilities and 0.03 MW under the private sector. Installed power capacity (MW) Hydropower is the major source of electricity generation in the state, contributing around MW to installed capacity, followed by MW of renewable energy resources and MW of thermal power Recently, the Cabinet Committee on Investment gave clearance to two hydro power projects: Tawang Hydroelectric Project and Tawang Hydroelectric Project. Moreover, the government has allocated 102 hydro electric projects, each exceeding 25 MW, to private players aggregating 35,031.5 MW. Some of these projects, previously allocated to the public sector, were reallocated to the private sector Source: Central Electricity Authority Department of Hydro Power Development, Arunachal Pradesh The India Environment Portal, New India Express
19 As of May 2014, overall tele-density in north eastern states stood at per cent^. The government has asked Bharat Sanchar Nigam Limited (BSNL) to beef up telecom connectivity in the far flung corners of Arunachal Pradesh on priority basis. In line with the same, the Telecom Regulatory Authority of India plans to invest nearly US$ 484 million to revamp telecom networks across the north eastern states, of which US$ 91 million will be invested in Arunachal Pradesh. BSNL is expected to use digital satellite phone terminals in these regions from October and was expected to complete installations by March A total of 321 and 6,673 towers will be installed to provide coverage to the highways and villages in the region, respectively. Out of the total of 321 towers, nearly 149 would be installed to provide highway coverage and 2,886 villages will be brought under the mobile loop in Arunachal Pradesh. As of June 2014, the state had 295 post offices. Telecom infrastructure (May 2014) Wireless subscribers^ 9,541,874 Wire-line subscribers^ 136,892 Tele-density^ Post Offices 295** Source: Telecom Regulatory Authority of India, India Post, ^Combined figures for the Northeast states comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura for May 2014, **As of April 2014 Some of the major telecom operators in Arunachal Pradesh Bharat Sanchar Nigam Limited (BSNL) Bharti Airtel Aircel Limited Vodafone Reliance Communications Idea Cellular Source: Economic Times, The Hindu Businessline, Telecom Regulatory Authority of India
20 Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), three projects costing US$ 29.9 million have been sanctioned for Itanagar. Development projects related to water supply, solid waste management and urban transport have been identified under the JNNURM. Of these, the municipal solid waste management project has been completed at a cost of US$ 1.8 million in September 2013 and the water supply project was completed at a total cost of US$ 11.7 million. The third project related to the improvement and creation of infrastructure for urban transport was 74 per cent complete as of March 2014, utilising 68 per cent of the allotted budget of US$ 15.1 million. The urban transport project was approved in 2009, while two other projects on water supply and solid-waste management were approved in As of March 2014, US$ 20.8 million of funds were released for the projects. Under the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), US$ million has been sanctioned for development of roads, solid-waste management and storm drainage systems. Source: JNNURM, Ministry of Urban Development, Government of India
21 As per the 2011 census, Arunachal Pradesh has a literacy rate of 65.4 per cent; the male literacy rate stood at 72.6 per cent and the female literacy rate at 57.7 per cent. Under the Sarva Shiksha Abhiyan (SSA), the government released US$ 4.8 million as salary for teachers in the SSA programme in January 2014 and is further expected to release US$ 29.0 million. The state has 20 colleges and 12 standalone institutions, with average enrolment of 1,943 students per college and 75 students per stand-alone institution. There is a proposal to establish five degree colleges, seven new polytechnics, and five new technical/professional colleges in the state. Moreover, the government plans to setup two new model colleges at Tirap and Longding districts to improve the education sector. The Northeast states (excluding Assam) ranked sixth best in India on the Human Development Index in with an HDI value of Literacy rates (%) Literacy rate 65.4 Male literacy 72.6 Female literacy 57.7 Source: Census 2011 By the end of the 12 th Five-Year Plan, the state government plans to raise the literacy rate in the state to 80 per cent. In order to boost the female literacy rate, the government planned to allocate US$ 0.83 million in the budget in a fixed deposit scheme for girls. Under the scheme, US$ 83 would be deposited for each class V girl student, to be made available to her after completion of Class XII. The government plans to set up more polytechnics across various districts to promote quality technical education. Arunachal Pradesh Cabinet recently approved a proposal to establish two new universities in the state.
22 Higher education infrastructure (As of March 2014) Universities/deemed universities 4 Degree colleges 20 Engineering colleges 2 Polytechnics 2 Medical colleges 1 Other colleges 3 Major higher educational institutes in Arunachal Pradesh North Eastern Regional Institute of Science and Technology*, Nirjuli National Institute of Technology, Yupia Jawaharlal Nehru College, Pasighat Industrial Training Institute (Roing, Daporijo and West Kameng district) College of Horticulture and Forestry^ Source: Directorate of Higher and Technical Education, Government of Arunachal Pradesh Source: Directorate of Higher and Technical Education, Government of Arunachal Pradesh *Deemed university ^Under the Central Agricultural University
23 To support its huge rural population, Arunachal Pradesh has a three-tier public healthcare infrastructure comprising sub-centres, primary health centres and community health centres. In addition, there are district hospitals in most districts. For , the government set aside US$ 73.0 million for healthcare. The Rashtriya Swashth Bima Yojna benefitted nearly 300 families in 2013, as each family was aided with nearly US$ 500 during the year. Health indicators of Arunachal Pradesh (2012) Birth rate (per thousand persons) 19.4 Death rate (per thousand persons) 5.8 Infant mortality rate (per thousand live births) 33 Health infrastructure in Arunachal Pradesh District hospitals 15 Community health centres 54 Primary health centres 128 Sub-centres 472 Ayurvedic hospitals 11* Ayurvedic dispensaries 2* Homoeopathic hospitals 1* Homoeopathic dispensaries 55* Source: Department of AYUSH, Ministry of Health & Family Welfare, Planning Commission, Government of India *As of August 2011 Source: Sample Registration System (SRS) Bulletin October 2013 (
24 There are 26 major tribes and many sub-tribes in Arunachal Pradesh who have a rich cultural heritage and follow distinct languages, costumes and festivals. The varied culture of the tribes is reflected in their bamboo, wood and cane handicrafts; carpets; traditional ornaments and paintings. Major festivals observed in the state are Mopin, Solung, Nyokum, Lossar, Si-Donyi, Boori-boot, Dree, Reh, Sipong Yong, Chalo-loku and Kshyatsowai. Trekking, river rafting, archery, mountaineering, fishing and angling are the prominent sports in Arunachal Pradesh. Sports infrastructure available in the state includes the Rajiv Gandhi Stadium in Naharlagun, Nyikum Niya Indoor Stadium in Nirjuli and Nehru Stadium in Khonsa. The key tourist destinations are Parasuram Kund (Lohit), the Namdapha National Park (Changlang), the Ita Fort and Jawaharlal Nehru State Museum (Itanagar), the Tawang Monastery (Tawang) and the Sela Lake (Bomdila). In an initiative to develop the tribal community, 630 tribal students benefitted from various Bachelor/PG/Commerce courses at Chandigarh affiliated with Punjab Technical University for undergoing vocational and professional training courses during The government plans to increase the number to 1,000 for Source: Tourism Department, Government of Arunachal Pradesh
25 Arunachal Pradesh has 12 industrial estates located in different districts and spread over a total area of 51.8 hectare. These industrial estates have been developed in land-areas ranging from 4,540 to 202,342.8 square metres, with the primary objective of growth and development of small scale industries. In addition, the state government has notified integrated infrastructure development centres, industrial growth centres and industrial areas to support industrial growth. Notified industrial estates Location District Deomali Tirap Khonsa Tirap Pasighat East Siang Tawang Tawang In order to promote agro based industries, the government proposed to provide special incentives such as VAT refund for the next five years from the date of production. Moreover, in order to attract more investments, investors who set up food processing units, cold storages and tissue culture labs in the state would be provided power dues refund at a rate of 10 per cent per year. Tippi Wanghoo Naharlagun Chandranagar Namsai Changlang Town Khachang Bam West Kameng West Kameng Papumpare Papumpare Lohit Changlang Changlang West Siang Source: Department of Industries, Government of Arunachal Pradesh
26 Notified integrated infrastructure development centres Notified industrial areas Location District Location District Deomali Tippi Dirang Iduli Tirap West Kameng West Kameng Dibang Valley Bhalukpong Roing Tezu West Kameng Dibang Valley Lohit Balinong Changlang Banderdewn Papumpare Source: Department of Industries, Government of Arunachal Pradesh
27 The state government has set up district industries centres (DICs) across districts. These DICs play a vital role in industrial development by providing services to entrepreneurs that include identification of suitable schemes; preparation of project reports; arrangement for providing required plant, machinery and raw-materials; assistance in availing incentives and facilities provided by both central and state governments; and liaison with all development departments and financial institutions to provide assistance to prospective entrepreneurs. Based on the 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 and communications, under public private partnership; Food processing industries and engineering and allied industries (rolling mill, steel mill, etc.); and Tourism.
28 The state s Chief Minister has assured the addition of 0.1 million jobs during the 12 th Five Year Plan ( ). During the financial year , creation of 10,000 job opportunities was targeted. However, nearly 17,327 youth were employed during the year, exceeding the set target by a huge margin. For , the target for employment was further raised to 25,000. In order to propel employment growth, the state government has arranged for training of a 100 candidates at IIWS, Noida, New Delhi, during Out of these 100 candidates, 79 were placed and the remaining were engaged in self employment. The success of the training led the government to increase the number of trainees to 200 in Furthermore, the state government has announced that a minimum of 10 per cent of the funds allocated to the MLA local area development scheme will be used to train unemployed youths. This will help them acquire the necessary skills for taking up self-employment activities or for enhancing their employability.
29 The resources, policy incentives and climate in state support investments in mining and mineral products (including cement), tissue culture and floriculture, plantation crops (tea, rubber, etc.) and agro-based industries. 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. North Eastern Development Finance Corporation Limited is engaged in catalysing industrial growth of the Northeastern states (including Arunachal Pradesh) by providing counselling, timely advice and assistance for building quality enterprises. The central government also approved the North East Industrial and Investment Promotion Policy (NEIIPP), The policy provides several incentives: incentive on business expansion, 100 per cent excise duty and income tax exemption, capital investment subsidy, interest subsidy and insurance premium reimbursement. 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. The DICs also help the local entrepreneurs in identifying suitable schemes, preparing feasibility reports, arranging supply of tools and equipment, providing credit facilities, etc. Key industries in Arunachal Pradesh Art and crafts Weaving Cane and bamboo Carpet weaving Wood carving Ornaments Tourism Horticulture Saw mills and plywood Power Mineral-based industry
30 As of June 2014, Arunachal Pradesh had a total installed power generation capacity of MW. The government has invited domestic power companies in the region to develop hydropower plants. Hydro energy (97.57 MW) accounted for around 40.6 per cent of Arunachal Pradesh s installed power generation capacity. The Department of Hydropower Development, Arunachal Pradesh, is wholly entrusted with the design, construction, operation and maintenance of hydropower projects in the state. Under NEIIPP, 2007, power generating plants receive incentives as governed by the provisions of Section 81A of the Income Tax Act. In addition, power generating plants (based on both conventional and non-conventional sources) with a capacity of up to 10 MW are eligible for capital investment subsidy, interest subsidy and comprehensive insurance. NTPC Ltd NHPC Ltd Some of the key players North Eastern Electric Power Corporation (NEEPCO) Bhilwara Energy Ltd On account of its hilly terrain and abundant rivers, Arunachal Pradesh is estimated to have hydropower potential of 60,000 MW (through mega projects). Key regions for tapping hydropower include Dibang, Tawang, Subansiri Upper, Subansiri Middle, Kameng and Lohit.
31 NTPC Ltd NHPC Ltd North Eastern Electric Power Corp (NEEPCO) Bhilwara Energy Ltd Jindal Power NTPC Ltd is a Maharatana Public Sector Unit (PSU) engaged in thermal power production. The company is a leading thermal power generator. It has also diversified into hydropower, coal mining, power equipment manufacturing, oil & gas exploration, power trading & distribution. NTPC plans to set up a hydropower project of around 9,500 MW in Upper Siang district, Arunachal Pradesh. The company s revenues stood at US$ 13.1 billion in NHPC Limited (formerly known as National Hydroelectric Power Corporation Limited) is a public sector major in hydroelectric power generation. The company signed an MoU with the state to invest US$ 4.5 billion during the 12 th Plan period and already has four ongoing projects with an installed capacity of 6,400 MW. Two are located in the Tawang district, one in the Dibang district and one in Subansiri Lower district. North Eastern Electric Power Corporation (NEEPCO) is a central PSU engaged in power generation in the Northeastern region. It is one of the oldest power generating companies and controls 55.0 per cent of the region s installed capacity. The company completed the prestigious 405 MW Ranganadi project in Arunachal Pradesh. NEEPCO is developing two projects in the state: Pare hydroelectric project (110 MW) and Kameng hydroelectric project (600 MW). Bhilwara Energy Limited is a part of LNJ Bhilwara group. The company signed three MoUs for development of hydropower projects in the state at Tawang, Angoline and Malinye. The company s revenues stood at US$ 75.2 million in Jindal Power Limited (JPL), a subsidiary of Jindal Steel & Power Ltd, has major presence in power generation and has set up several mega power projects in the country. JPL signed agreements for development of three hydroelectric projects with a combined capacity of 6,100 MW in Arunachal Pradesh in joint venture with Hydro Power Development Corporation of Arunachal Pradesh Limited.
32 Hydro power projects in the North East Central sector Private State/unallocated Arunachal Pradesh No of schemes Installed capacity (MW) No of schemes Installed capacity (MW) No of schemes Installed capacity (MW) Total schemes Total installed capacity (MW) 3 4, , ,224 Assam Manipur 2 1, ,139 Meghalaya , ,214 Mizoram 5 2, ,276 Nagaland Tripura Sikkim , ,546 Total 13 8, , , ,288 Source: Ministry of Power, Annual Report
33 Arunachal Pradesh has been identified as a major potential area for power production. In the 12th Five-Year Plan, a total of 96 hydropower projects having a generation capacity of 47,000 MW were announced for the state. Arunachal Pradesh has the potential to generate 60,000 MW of hydro power. The central government identified 13 hydro electric projects that are key to the state. The government recently allocated a total of 102 hydro power projects aggregating 35,031.5 MW to private players. This was due to reallocation of some projects from public companies to private companies. Four of the biggest projects currently under construction include the 2,000 MW Subansiri Lower, 600 MW Kameng, 110 MW Pare and 1,750 MW Demwa Lower hydroelectric projects. These projects are expected to be completed between 2013 and A 2x30 KW Ashapani micro hydel project has been commissioned in Anjaw district of the state, with an objective of electrification of Chaglagam circle and its adjoining villages. The Ministry of Environment and Forests (MoEF) granted pre-construction scoping clearances to over 50 projects under the EIA notification Final environmental clearance has been awarded to 13 projects. The sixth meeting of the task force on Hydro Project Development was held in New Delhi in September 2013, wherein the state government urged the Union Ministry of Power to speed up the process of granting the remaining clearances. Arunachal Pradesh would get 12 per cent power from each project for free, making it a power surplus state and enabling it to generate revenues through sale to other states.
34 The State Industrial Policy, 2008, of Arunachal Pradesh lists mineral-based industries (such as ferro-alloys, cement plants, etc.) as thrust sectors. Arunachal Pradesh Mineral Development and Trading Corporation Limited (APMDTCL) manages the state s mining activities. During , mineral production generated US$ 78 million for the state s exchequer. Total extraction of coal since April 2007 to February 2012 was one million tonnes. In , total coal production in the state was 299,000 tonnes. Source: Maps of India Arunachal Pradesh has considerable mineral reserves, and preliminary studies have highlighted economic mineral deposits in considerable quantity. The state has reserves/resources of coal in Namchik Namphuk Coalfields; dolomite in West Kameng district; fuller's earth in Tirap district; graphite in Lohit, Upper Siang and Upper Subansiri districts; and limestone in Dibang Valley, Lohit, Upper Siang and Upper Subansiri districts. Reserves/resources of minerals in Arunachal Pradesh (as of March 2011) Ore/mineral Reserves (million tonnes) Coal Dolomite 77.83* Limestone * Graphite 72.75* Fuller's earth 20.01* Quartzite 5.27* Source: Indian Bureau of Mines, *As of March 2010
35 Arunachal Pradesh s agriculture and allied sectors have growth rates that are three times the national average. Major agro and forest based industries in the state are related to tea, fruit, non-timber and plywood industries. Around two-thirds of the state s population is dependent on agriculture. The state government s New Agricultural Policy 2001 aims to achieve higher economic growth and create job opportunities for the unemployed in rural areas. The state government is focusing on improving farmer income through higher productivity, use of suitable farm techniques, upgrading technical competency, marketing support and availability of a cooperative credit network. Non-timber based industries include bamboo, cane, rubber and medicinal plants. The industry is characterised by many regional players; several units have been set up by the 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. The state set up a programme named Chief Minister s Agriculture Mechanisation Programme, which was meant to provide financial aid to farmers to purchase farm machineries. In the budget, the government set aside US$ 1.7 million for the Agriculture Mechanisation Programme and US$ 2.5 million to promote rubber and tea plantation. Arunachal Plywood Industries Limited Arunachal Plywood Industries Limited (APIL) is among the oldest plywood manufacturing units in the country. The company manufactures bamboo boards, prefabricated houses, pallets/crates and bamboo mat boards. The pre-fabricated structures are not only eco-friendly, but also cost effective and long lasting. The company has its manufacturing unit at Namsai, Arunachal Pradesh.
36 Tourism has grown rapidly in the recent years with eco and adventure tourism, cultural tourism and religious tourism being the major areas of interest. Major sports of interest to travellers include angling, boating, rafting, trekking and hiking. Arunachal Pradesh is an Orchid Paradise, accounting for 601 species of orchids, or 52 per cent of the species known in India. An orchid research centre has been established at Tipi to promote orchid conservation, research and development. The State Industrial Policy, 2008, provides incentives for developing tourism infrastructure, with special focus on public-private partnerships in tour operations, hotels and resorts. The central government s Look East Policy is initiating tourism as a means to increase trade with other South East Asian countries. In , Arunachal Pradesh received financial assistance from the central government for developing sustainable rural tourism that is aimed at promoting traditional rural craft, textile and culture to develop the rural economy. Under the Chief Minister s Paryatan Vikaas Yojana, a project has been launched to provide subsidised tourist cabs to educated unemployed youth across districts. For this, a provision of US$ 0.83 million was made during The inception of railways in the state is expected to boost tourist arrivals. The government inked an MoU with the Indian Railway Catering and Tourism Corporation for promoting the tourism sector. To boost tourist inflow and make the state more visitor friendly, the government is working on simplifying the process of application & issuance of the Inner Line Permit. A new railway line between Assam and Pasuramkund, a Hindu pilgrimage site, is in the planning stage. 91 Arrivals of domestic tourists in Arunachal Pradesh (in 000s) Source: Economic Times, Times of India, Ministry of Tourism, Government of India
37 Textile is a grass-roots industry in Arunachal Pradesh and provides employment, mainly to women. Most of the units are home-based and have a small scale of operations. The state boasts of an enriching array of unique and appealing handloom designs from each of its tribes. The products include skirts (gale), shirts (galuk), cotton shawls, side bags, and curtain cloth. 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 due to their quality. The carpet weaving industry is promoted through the Government Craft Centre. Sericulture is also practised in the state; in , the state had 240 hectares of area under silk production and produced about 22 Metric Tonnes of raw silk. To give a major thrust to this business, Arunachal Pradesh s government is reorganising the existing seed production centre by providing additional operational buildings and technical staff. It is also supporting rearers by supplying the required seeds, planting materials and rearing appliances, among others. The Department of Textile & Handicraft(s), Arunachal Pradesh, supports the textile sector s development. It provides selfemployment opportunities to weavers and artisans through several development projects. There are 88 crafts centres imparting training in different trades. The department has 15 Emporia, three mini sales Emporia and five showrooms for marketing handloom and handicraft products manufactured by local artisans. Under the Integrated Handloom Development Scheme, 22 clusters were taken up in the state between and The Union Ministry of Textile approved establishment of the National Institute of Fashion Technology (NIFT) at Sagalee in Papum Pare district. Source: Department of Textile & Handicraft(s), Arunachal Pradesh Central Silk Board, Ministry of Textiles Government of India
38 S No List of approvals and clearances required Concerned department of state 1 Incorporation of company/partnership firm/co-operatives Registrar of Companies 2 Registration, Industrial Entrepreneurs Memorandum (IEM), industrial licenses 3 Permission for land use 4 Allotment of land Department of Industries Arunachal Pradesh Industrial Development and Financial Corporation Limited/ Department of Industries 5 Site environmental approvals Ministry of Environment and Forests, Government of India; Arunachal Pradesh State 6 No-objection certificate and consent under Water and Pollution Control Act Pollution Control Board (APSPCB) 7 Registration under State s Sales Tax Act and Central and State Excise Act Department of Tax and Excise, Government of 8 Commercial taxes Arunachal Pradesh Source: Government of Arunachal Pradesh
39 S No List of approvals and clearances required Concerned department of state 9 Sanction of power 10 Power feasibility Department of Power, Arunachal Pradesh 11 Power connection 12 Approval for construction activity and building plan 13 Water and sewerage clearance 14 Water connection Respective District Municipality Department of Public Health Engineering Source: Government of Arunachal Pradesh
40 Agency Department of Industries Arunachal Pradesh Industrial Development and Financial Corporation Limited (APIDFC) Arunachal Pradesh Energy Development Agency (APEDA) Description The Department of Industries is the main executive and regulatory agency functioning under the state government. It oversees and monitors the overall industrial development activities in the state. The department is engaged in various activities such as: a) Formulating Industrial Policy and setting up of industrial estates/growth centres/ district industries centres. b) Registering and regulating industries. c) Providing financial assistance to small scale and other industries. d) Distributing scarce and indigenous raw-materials to different industrial units. e) Apprenticeship Training Programmes through ITIs and other industrial development related activities. Incorporated under the Companies Act, 1956, in August Set up to promote and finance industries in Pradesh. Develop infrastructure facilities (currently being handled by the Department of Industries, expected to be handed over soon). Implement schemes of assistance of National Scheduled Castes and Scheduled Tribes Finance and Development Corporation Limited (NSFDC). 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. Also the state nodal agency for projects connected with Clean Development Mechanism (CDM).
41 Agency North Eastern Development Finance Corporation Limited (NEDFi) North Eastern Handicrafts and Handloom Development Corporation (NEHHDC) Description NEDFi is promoted by leading public financial institutions: Industrial Development Bank of India (IDBI), State Bank of India (SBI), Life Insurance Corporation of India (LIC), Small Industries Development Bank of India (SIDBI), Industrial Finance Corporation of India (IFCI), Industrial Credit and Infrastructure Corporation of India (ICICI), Specified undertakings of Unit Trust of India (SUUTI), General Insurance Corporation of India (GIC) and its subsidiaries. Incorporated in August 1995, NEDFi is headquartered in Guwahati, Assam, and works under the administrative control of the Ministry of Development of North Eastern Region (DoNER), Government of India. It services micro, small, medium and large enterprises through facilities such as project and equipment finance, working capital finance, schemes for development of entrepreneurial skills and market development for products from the Northeast. Under the administrative control of the Ministry of Development of North Eastern Region (DoNER), Government of India. Develop and promote indigenous crafts of the region. Establish and operate sales centres for improving marketability of goods. Provide financial, technical and other assistance to craftsmen, weavers, cooperatives and other establishments. Provide training for upgrading traditional skills.
42 Agency Department of Industries Arunachal Pradesh Industrial Development and Financial Corporation Limited(APIDFC) Arunachal Pradesh Energy Development Agency (APEDA) North Eastern Development Finance Corporation Ltd (NEDFi) Contact information Government of Arunachal Pradesh Udyog Sadan, ltanagar Phone: / Fax: dir-industry-arn@nic.in C Sector, Near Petrol Pump Itanagar Phone: , Urja Bhawan, Tadar Tang Marg Post Box No 141, Itanagar Arunachal Pradesh Phone: , apedita@sancharnet.in NH-52A, Main Road, E-Sector, Itanagar , Arunachal Pradesh Phone/Fax:
43 Cost parameter Cost estimate Source Hotel costs (per room per night) US$ 8 to US$ 75 State Tourism website Power cost (per kwh) Labour cost (minimum wages per day) Commercial: US 7.9 cents to US 9.9 cents Industrial: US 6.2 cents to US 8.3 cents Unskilled: US$ 3.0 to US$ 3.4 Skilled: US$ 3.2 to US$ 3.6 Department of Power, Government of Arunachal Pradesh Ministry of Labour and Employment, Government of India Water (per 1,000 litres) Commercial and industrial: US 15.7 cents Industry sources
44 Public Private Partnership Policy 2011 Objectives Leverage State and Central Government funds to support private investment Prepare a shelf of projects to be offered for PPP and take them forward with the assistance of the owner departments through a transparent selection process Read more State Industrial Policy 2008 Objectives Facilitate and promote growth of the industry, employment and investment in the state Promote export oriented industrial units Read more Hydro Power Policy 2008 Objectives Harness hydropower potential of the state in a manner that is consistent with the provisions of the Electricity Act, 2003, and the National Electricity Policy and other policies formulated in the Act. Accelerate the pace of hydropower development through participation of both the central public sector undertakings and private power developers, and also by formulating public private partnerships. Help creation of social and development infrastructure through hydropower development. Read more
45 Small Hydro Power (SHP) Policy 2007 Objective Facilitate and promote growth of small hydropower plants through private participation, thereby increasing employment opportunities in the state Read more North East Industrial and Investment Promotion Policy (NEIIPP) 2007 Objective Promote the Northeast as an attractive investment region through concessions and incentives Read more Agriculture Policy 2001 Objective Achieve higher economic growth and create job opportunities for the rural unemployed through agriculture and allied sectors Read more
46 Average exchange rates Year INR equivalent of one US$
47 India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of Aranca and IBEF s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.
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