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

2. ASSAM AT A GLANCE 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

3. Guwahati is the hub for inter and intra regional connectivity
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
AIRWAYS
Tezpur
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
Guwahati is the hub for inter and intra regional connectivity

4. Guwahati is the hub for inter and intra regional connectivity
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
WATERWAYS
Broad gauge railway linkage upto Tinsukia & Lakhimpur (Total railway route length 2434 kms)
Inland Container Depot (ICD) at Guwahati
RAILWAYS
Guwahati is the hub for inter and intra regional connectivity

5. 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
From the global prospective also Assam has got the local advantage because of its nearness to fastest growing economies of Asia which is to be connected through proposed Asian Highways and Trans Asian Railways.
Government of Assam

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

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

8. POLICY ENVIRONMENT The Highlights of the NEIIPP 2007
100% 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.

9. State Policy, 2014 POLICY ENVIRONMENT
The Highlights of the NEIIPP 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

10. NATIONAL POLICY ON DIRECT INVESTMENT
100% FDI on the following sectors fall under the Automatic route
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

11. INDIA –THAILAND : TRADE & INVESTMENTS
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

12. INDIA –THAILAND : TRADE & INVESTMENTS
FDI Inflow
34th largest investor in India
4th 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

13. WHY INVEST IN ASSAM ? 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
In short, Assam’s location advantage and rich natural resources provide a backdrop to its development as a base for foreign investors

14. THRUST AREA FOR INVESTMENT IN ASSAM
Inland Waterways – Present Status
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.

15. THRUST AREA FOR INVESTMENT IN ASSAM
Inland Waterways
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

16. THRUST AREA FOR INVESTMENT IN ASSAM
Air Infrastructure & Connectivity – Present Status
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 2012.
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

17. THRUST AREA FOR INVESTMENT IN ASSAM
Air Infrastructure & Connectivity
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

18. THRUST AREA FOR INVESTMENT IN ASSAM
Power – Present Status
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

19. THRUST AREA FOR INVESTMENT IN ASSAM
Power
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.

20. THRUST AREA FOR INVESTMENT IN ASSAM
Tourism – Present Status
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

21. THRUST AREA FOR INVESTMENT IN ASSAM
Tourism
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

22. THRUST AREA FOR INVESTMENT IN ASSAM
Food Processing – Present Status
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

23. THRUST AREA FOR INVESTMENT IN ASSAM
Food Processing
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, 2014.

24. THRUST AREA FOR INVESTMENT IN ASSAM
Horticulture – Present Status
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

25. THRUST AREA FOR INVESTMENT IN ASSAM
Horticulture
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

26. THRUST AREA FOR INVESTMENT IN ASSAM
Bamboo – Present Status
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

27. THRUST AREA FOR INVESTMENT IN ASSAM
Bamboo
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, 2014.

28. AREAS FOR CO-OPERATION IN THAILAND
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
Contd.
Contd.

29. AREAS FOR CO-OPERATION IN THAILAND
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.

30. 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.
Contd.

31. 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, 2014.
Tupul to Imphal to be completed by March, 2016.
Imphal to Moreh ( the missing link) to be constructed to connect Myanmar and beyond.
NF Railway is expanding its activities to connect ASEAN through Myanmar:

32. Asian Highways
Asian High way is under construction and to be completed by March, 2016.
Government of India is assisting Myanmar for reconstruct/ re-aliegnment of roads, construction of new bridges, etc. to connect ASEAN countries
Asian High way is under construction and to be completed by March, 2016.
Government of India is assisting Myanmarfor reconstruct/realiegnment of roads, construction of new bridges.

33. To Sum up
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

34. Thank You Visit us at www.investinassam.com