Investment opportunities in Assam Government of Assam 25/03/2014 Shri. Rajesh Prasad, IAS Commissioner of Industries & Commerce, Assam

Location : Gateway to the North Eastern Region Population: Assam is home to over 3.11 million and 3.76% of India’s Population resides in North Eastern India; 6.5 % of the World’s Population lives in the hinterland of Eastern India, Nepal, Myanmar, Bangladesh and Bhutan ASSAM AT A GLANCE

Imphal Guwahati Kolkata Silchar Dimapur Jorhat Dibrugarh Zero Lakhimpur Bagdogra Agartala To Delhi Guwahati is well connected with all the metro cities of the country Direct flight to Bangkok two days in a week. Cargo Handling facility at Guwahati Guwahati is the hub for inter and intra regional connectivity AIRWAYS Well connected to all metros in India States within the region are well connected by State Highways and National Highways The 4 lane East West Corridor passes through the State ROADWAYS Tezpur CONNECTIVITY

WATERWAYS RAILWAYS  River Brahmaputra declared 2nd National Waterway & River Barak as 6th National Waterway  Pandu, Guwahati and Karimganj designated as Ports of Call  1983 kms of Navigable Waterways within the state  Broad gauge railway linkage upto Tinsukia & Lakhimpur (Total railway route length 2434 kms)  Inland Container Depot (ICD) at Guwahati CONNECTIVITY Guwahati is the hub for inter and intra regional connectivity

Government of Assam Proximity to SAARC & ASEAN Countries Gateway to the North Eastern India Corridor to South East Asia Nearest to the Fastest Growing Economies of Asia – China, Thailand, Myanmar, Malaysia, Philippines, Cambodia, etc. Cambodia Proposed connectivity through Asian Highways and Trans Asian Railways Bhutan Bangladesh

Mineral Resources Coal Petroleum Natural Gas Limestone Sillimanite and salt Granite Assam represents a wide spectrum with a host of mineral deposits among which oil and natural gas has been commercially exploited RESOURCE PROFILE OF ASSAM (Indicative List) Iron Ore Quartzite Clay

Agro – Horti Resources Rice, Maize, Jute, Wheat, Pulses, Arecanut, Coconut, Potato, Sweet Potato, Tapioca Tea, Bamboo & Rubber Banana, Orange, Citrus fruits, Pineapple, Jackfruit, Guava, Papaya, Onion, Ginger, Black Pepper, Chillies, Turmeric ASSAM – RESOURCE PROFILE (Indicative List) MAJOR CROPS FRUITS, SPICES & VEGETABLES MAJOR PLANTATION

The Highlights of the NEIIPP % Income Tax and Central Excise exemption for a period of 10 years for units located anywhere in the North East 90% Freight Subsidy scheme for both raw material and finished products to and from the region for a period of five years. 30% Central Capital Investment Subsidy for new and existing units 3% Working Capital Interest subsidy on loan for a period of ten years. 100% reimbursement of Insurance premium for a period of 10 years. POLICY ENVIRONMENT

The Highlights of the NEIIPP 2007 for coverage of Services sectors, like Hotels, Adventure Tourism, Amusement Park generation of power, Biotech Industries, etc. State Policy, 2014 Exemption of Value added Tax up to 15 years Special incentive to Mega projects Exemption on Entry Tax 50% exemption on Luxury tax, etc POLICY ENVIRONMENT

 Power – Generation (except Atomic), Transmission and Distribution  Roads - All road development projects incl construction and maintenance of roads, highways, vehicular, bridges, toll roads, vehicular tunnels  Existing Airports – 100% but FIPB approval required for FDI beyond 74% and 100% FDI in Greenfield projects  Horticulture, Animal Husbandry, cultivation of vegetables, mushrooms, Tea Plantation, Floriculture, etc. under controlled conditions and services related to agro and allied sectors  Hotels and Tourism  Inland Waterways infrastructure development  Trading of items sourced from SSI units  Retail trading NATIONAL POLICY ON DIRECT INVESTMENT 100% FDI on the following sectors fall under the Automatic route

Foreign Trade Performance  Exports to Thailand  Exports to Thailand valued at USD million during increased to USD million during  Imports from Thailand  Import from Thailand valued at USD million during increased to USD million in  Total Trade with Thailand  The total trade valued at USD million in increased to USD million in INDIA –THAILAND : TRADE & INVESTMENTS

FDI Inflow  34th largest investor in India  4 th largest from the ASEAN region, after Singapore, Malaysia and Vietnam Indian investment in Thailand  Thailand’s Board of Investment approved 25 Indian projects in 2012  Investments in Thailand worth over USD 200 Million in 2012  Major areas include automobiles, steel, software, chemicals, textiles, chemicals, pharmaceuticals etc INDIA –THAILAND : TRADE & INVESTMENTS

 Endowed with Natural Resources  A vast human resource base of skilled, semi- skilled and educated manpower, at extremely competitive costs  Total Tax Free Zone  Access to large markets of mainland India, south and south East Asia which together comprises over 50 % of the world population and includes some of the fastest developing economies in the world  Proximity to the SAARC countries of Bhutan and Bangladesh gives foreign investors the advantage of international trade WHY INVEST IN ASSAM ? In short, Assam’s location advantage and rich natural resources provide a backdrop to its development as a base for foreign investors

 Size  Major routes are over Brahmaputra and Barak river  Navigable length are 891km from Sadiya to Dhubri over Brahmaputra and 121 kms in the Barak river  Seven port locations operational for Import and Export with connectivity to Kolkata and Haldia port  Approx 2.56 Million Ton of Cargo traffic in 2011 – 12  Structure  Majority of the routes are under the Govt.  Private sector participation in Cargo and Cruises  Development of River Port facility. Inland Waterways – Present Status THRUST AREA FOR INVESTMENT IN ASSAM

 Outlook  Increase the traffic by as it has potential.  Harnessing the power of the cheapest means of transport  Open up access to ASEAN through Bay of Bengal  Opportunity  Transportation of both people and cargo  Maintenance of the fairways e.g Dredging of river to maintain the flow of vessels.  Opportunities in Infrastructure development for facilitating transportation like ports, piers, mechanized handling facilities, Navigational aids, terminal development etc  Floating Restaurants, Shopping arcades, Convention centers, etc Inland Waterways THRUST AREA FOR INVESTMENT IN ASSAM

 Size  Assam has 6 operational airports; of these, the Guwahati airport is designated as an International Airport.  Small private airstrips in the interior area are present in large numbers  In 2012 there was an 41% increase in passenger carried per week between the summer and winter of  Structure  The airports are owned and operated by the Airports Authority of India  Some small and remote airstrips with varied degree of operation are under private operators like Tea gardens, PSUs etc Air Infrastructure & Connectivity – Present Status THRUST AREA FOR INVESTMENT IN ASSAM

 Outlook  Major investments planned in up-gradation of existing airports anticipating the demand  Pre Feasibility Study for construction of New Green Field Airport at Kokrajar conducted by AAI  Guwahati can be the hub of International flights to the ASEAN.  Opportunity  Developing Green field projects  Up-gradation of abandoned airstrips at strategic locations  Cargo handling & other facilities in airports Air Infrastructure & Connectivity THRUST AREA FOR INVESTMENT IN ASSAM

 Size  Total generation in the state is MW  More than 15,000 Kms of T&D lines  Average peak demand is 1500 MW, available from various sources is 1024 MW.  Only 74% of the rural villages are connected  Structure  Majority of Generation, Transmission and Distribution capacities are with PSUs and State Electricity boards  Private sector participation is anticipated Power – Present Status THRUST AREA FOR INVESTMENT IN ASSAM

 Outlook  Over 1,500 MW of new generation capacity is required in the next few years in the state  Corresponding investment in T&D  Power costs need to be reduced, increased generation efficiencies and added low cost generating capacity  Opportunity  Large demand-supply gap  Opportunities in Generation for: Hydro, Coal based, Natural Gas based and alternative energy of different capacity  Opportunities in Transmission network ventures  Opportunities in Distribution through bidding for the privatization of distribution. Power THRUST AREA FOR INVESTMENT IN ASSAM

 Size  There is an increase of over 13.6 % in the number of International tourist arriving Assam in 2012  4.5 million domestic tourists visited the state in ; an increase of over % of  Average occupancy of 65% last year  Guwahati will have its first 5 star category during this year.  Structure  Private sector dominate the industry  Government involved in infrastructure and marketing Tourism – Present Status THRUST AREA FOR INVESTMENT IN ASSAM

 Outlook  Foreign tourist arrivals are expected to grow many folds in the coming years  Domestic tourism is expected to increase by 20% p.a.  Corresponding investment in Tourism and related activities  Opportunity  Tourism Infrastructure - Hotels,Resorts, Amusement, River Cruises, Developing Airstrips in remote areas  Joint Tourism Circuit Development – Heritage circuits, wildlife tourism, Eco-tourism, Cultural Tourism, Pilgrimage and Tea – Golf circuits etc. eg. Pukhet and Kaziranga can be offered as a combined tourist destination Tourism THRUST AREA FOR INVESTMENT IN ASSAM

 Size  Less than 30% of the food products are processed  80% of these constitute the Primary Food Processing (packaged milk, milled flour and rice, tea, spices, etc.)  Packaging of perishables including fruits and vegetables is negligible  Structure  This sector has limited private operators in the organised sector  Some co-operatives, especially in the dairy sector are operational  There is a presence of major companies including MNCs through franchisees Food Processing – Present Status THRUST AREA FOR INVESTMENT IN ASSAM

 Outlook  The sector has the potential to grow in the state with increasing demand for processed food  The wastage of perishable due to non availability of processing infrastructure & utilities will be reduced in the next few years  Opportunity  Favorable agro climatic condition is conducive for a wide range of products  Opportunities in processing, sourcing etc  Inclusive farming and processing of products  Logistics & Cold chains  One Mega Food park is under construction at Tihu and to be completed by June, Food Processing THRUST AREA FOR INVESTMENT IN ASSAM

 Size  90% of the population in Assam is rural, with 74% dependent on agrarian and allied activities  Horticulture production both in homestead as well as in farms  Production base in essence is Organic  An average of 70% of the total production of Horticultural products are Marketable surplus  Structure  Both state and central government in the promotion and development of this sector  Regulations in logistics and marketing  Unorganised private sector dominant in retail sales  Few private players in the organised sector Horticulture – Present Status THRUST AREA FOR INVESTMENT IN ASSAM

 Outlook  The sector has the potential to grow in the state with increasing new crops with high demand being given thrust  Spectacular growth rate in the last 5 years  Transforming the region from de-facto Organic to Organic by certification  New horizon of linking up with Tourism e.g. Organic vacations  Opportunity  Favorable agro climatic condition is conducive for a wide range of fruits, vegetables, medicinal & aromatic plants, flowers, spices etc  Opportunities in sourcing organically produced fruits & vegetables  Value addition in the chain e.g. processing, extraction, packaging Horticulture THRUST AREA FOR INVESTMENT IN ASSAM

 Size  The region has the highest concentration of bamboo having high potential for commercialization. Approx 60% of the total bamboo of the country  Bamboo flowering has started in the region  Substantial areas under homestead cultivation and commercial cultivation is taking place  Structure  The felling and cutting of bamboo is regulated by the Forest department.  Central and state laws for harvest, Trade and Transit  Private sector investment in industry Bamboo – Present Status THRUST AREA FOR INVESTMENT IN ASSAM

 Outlook  New products, new applications: transforming an age old material  Identify, develop, test, validate & commercialize technologies, processes & products for new products and application  Bamboo as a substitute to timber in the next decade  Opportunity  Reinventing bamboo in Plywood units and Paper Mills  Micro-propagation & production; Shoot processing  Industrial products/ gasification, Fibre & thermoplastics  Machinery & equipment  Skill up gradation and training  Bamboo Park is under construction and to be completed by June, Bamboo THRUST AREA FOR INVESTMENT IN ASSAM

 ICT and related activities including Training & Education  Low skill data processing & publishing works  Down Stream Industries based on “ Assam Gas Cracker Projects- BCPL” at Dibrugarh.  One Plastic Park at Tinsukia is under construction.  Joint ventures in:  Tourism  Food Processing  Healthcare  Print Media  Organic Food products  Tea AREAS FOR CO-OPERATION IN THAILAND Contd.

 Several New Parks under construction:  Jute Park at Dhing, Nagaon  Tea Park at Chaygaon  IT Park at Guwahati Investors are welcome to invest in Assam. AREAS FOR CO-OPERATION IN THAILAND

Connectivity to Thailand from NER  River Route from Guwahati to Thailand Guwahati to Thailand through River Protocol-1 : River route from Guwahati – Haldia via Bangladesh and Sea Route from Haldia to nearest coastal Port of Thailand. OR Guwahati – Mangala/ Chittagong (Bangladesh) through River Route and then Sea route to Thailand Contd.

Railways  NF Railway is expanding its activities to connect ASEAN through Myanmar:  Railway line from Silchar to Moreh is under construction.  Silchar-Jiribam – Tupul is likely to be completed by March,  Tupul to Imphal to be completed by March,  Imphal to Moreh ( the missing link) to be constructed to connect Myanmar and beyond.

Asian Highways Asian High way is under construction and to be completed by March, Government of India is assisting Myanmar for reconstruct/ re- aliegnment of roads, construction of new bridges, etc. to connect ASEAN countries

The Government of Assam is committed towards facilitating and creating a long – term business relationship with Thailand & to transform the region into a corridor for South East Asia to rest of India To Sum up

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