Transcript Slide 1

Government of Assam
Investment opportunities
in Assam
Shri. Rajesh Prasad, IAS
Commissioner of Industries & Commerce,
Assam
25/03/2014
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
• Guwahati is well connected
with all the metro cities of the
country
Zero
Lakhimpur
To Delhi
• Direct flight to Bangkok two
days in a week.
• Cargo Handling facility at
Guwahati
Kolkata
Dibrugarh
Bagdogra
Tezpur
Guwahati
ROADWAYS
AIRWAYS
CONNECTIVITY
Silchar
Agartala
Jorhat
Dimapur
Imphal
• 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
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
RAILWAYS
WATERWAYS
CONNECTIVITY
 Broad gauge railway linkage
upto Tinsukia & Lakhimpur
(Total railway route length
2434 kms)
 Inland Container Depot
(ICD) at Guwahati
Guwahati is the hub for inter and intra regional connectivity
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.
Bhutan
Bangladesh
Cambodia
• Proposed connectivity through Asian Highways
and Trans Asian Railways
Government of Assam
RESOURCE PROFILE OF ASSAM
Mineral Resources
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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
ASSAM – RESOURCE PROFILE
Agro – Horti Resources
MAJOR CROPS
Rice, Maize, Jute, Wheat,
Pulses, Arecanut, Coconut,
Potato, Sweet Potato, Tapioca
FRUITS, SPICES
& VEGETABLES
Banana, Orange, Citrus fruits,
Pineapple, Jackfruit, Guava,
Papaya, Onion, Ginger, Black
Pepper, Chillies, Turmeric
MAJOR
PLANTATION
Tea, Bamboo & Rubber
(Indicative List)
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.
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
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
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Hotels and Tourism
Inland Waterways infrastructure development
Trading of items sourced from SSI units
Retail trading
INDIA –THAILAND : TRADE & INVESTMENTS
Foreign Trade Performance
 Exports to Thailand
Exports to Thailand valued at USD 1810.87 million
during 2007-08 increased to USD 3732.66 million
during 2012-13
 Imports from Thailand
 Import from Thailand valued at USD 2300.93 million
during 2007-08 increased to USD 5459.23 million in
2012-13
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 Total Trade with Thailand
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The total trade valued at USD 4111.80 million in
2007-08 increased to USD 9191.89 million in .201213
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
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
THRUST AREA FOR INVESTMENT IN ASSAM
Inland Waterways – Present Status
 Size
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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
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Majority of the routes are under the Govt .
Private sector participation in Cargo and Cruises
Development of River Port facility.
THRUST AREA FOR INVESTMENT IN ASSAM
Inland Waterways
 Outlook
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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
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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
THRUST AREA FOR INVESTMENT IN ASSAM
Air Infrastructure & Connectivity – Present Status
 Size
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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
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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
THRUST AREA FOR INVESTMENT IN ASSAM
Air Infrastructure & Connectivity
 Outlook
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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
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Developing Green field projects
Up-gradation of abandoned airstrips at strategic locations
Cargo handling & other facilities in airports
THRUST AREA FOR INVESTMENT IN ASSAM
Power – Present Status
 Size
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Total generation in the state is 376.7 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
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Majority of Generation, Transmission and Distribution capacities
are with PSUs and State Electricity boards
Private sector participation is anticipated
THRUST AREA FOR INVESTMENT IN ASSAM
Power
 Outlook
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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
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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.
THRUST AREA FOR INVESTMENT IN ASSAM
Tourism – Present Status
 Size
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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 2012-13; an
increase of over 10.20 % of 2010-11.
Average occupancy of 65% last year
Guwahati will have its first 5 star category during this year.
 Structure
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Private sector dominate the industry
Government involved in infrastructure and marketing
THRUST AREA FOR INVESTMENT IN ASSAM
Tourism
 Outlook
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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
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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
THRUST AREA FOR INVESTMENT IN ASSAM
Food Processing – Present Status
 Size
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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
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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
THRUST AREA FOR INVESTMENT IN ASSAM
Food Processing
 Outlook
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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
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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.
THRUST AREA FOR INVESTMENT IN ASSAM
Horticulture – Present Status
 Size
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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
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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
THRUST AREA FOR INVESTMENT IN ASSAM
Horticulture
 Outlook
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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
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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
THRUST AREA FOR INVESTMENT IN ASSAM
Bamboo – Present Status
 Size
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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
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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
THRUST AREA FOR INVESTMENT IN ASSAM
Bamboo
 Outlook
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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
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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.
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:
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Tourism
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Food Processing
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Healthcare
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Print Media
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Organic Food products
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Tea
Contd.
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.
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, 2014.
Tupul to Imphal to be
completed by March, 2016.
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, 2016.
Government of India
is assisting Myanmar
for reconstruct/ realiegnment of roads,
construction of new
bridges, etc. to
connect ASEAN
countries
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
Thank You
Visit us at www.investinassam.com