Arunachal Pradesh - August 2013

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Source:Arunachal Pradesh Government website, Aranca research

Largest hydropowerpotential in India

Indias pent-up demand for electricity could be addressed by the states potential 57,000MW of hydropower capacity. Currently, 88 private sector projects with a total capacity of31,587.5 MW are in the pipeline.

Railways as a new

means of transport

The proposed 20 km Harmuti (Assam) to Naharlagun route, expected to be operational in2013, would connect the state to the rest of India and provide huge trade and transport

opportunities.

Orchid paradise Arunachal Pradesh is home to 601 species of orchids or 52% of the species of orchids

known in India, indicating a huge potential for attracting tourists, especially foreign tourists.

Carpet making

The states textile industry, including carpet making, enjoys a huge appeal. On account of

the creativity, the states carpets have received national and international fame for theirdesign and quality.

Largest state in NorthEast

Arunachal Pradesh, with an area of 83,743 sq km, is the largest state in the North East. Itsdiverse topography also offers opportunities for non-timber based industries, includingbamboo, cane and medicinal plants.


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* Calculated in Indian rupee terms

The engineering sector is delicensed;100 per cent FDI is allowed in thesector

Due to policy support, there wascumulative FDI of USD14.0 billion intothe sector over April 2000 February2012, making up 8.6 per cent of totalFDI into the country in that period

Growing demand

High economic growth

The GSDP increased at a compoundannual growth rate (CAGR) of 17.5 percent* between 200405 and 201213,faster than Indias 15.6 per cent* growth.

The state has considerable mineralreserves that offer huge potential.

Due to its topography, the state hasvaried agro-climatic conditions suitablefor the horticulture of f lowers andaromatic and medicinal plants.

Huge hydropower potential

The hilly terrain and abundant riversmake the state a potentialpowerhouse of the Northeast

The states hydropower potential iscurrently estimated at 57,000 MW orapproximately 26% of Indias currentpower generating capacity

International tradeopportunities

The states location providesopportunities for international trade withSouth Asian countries such asMyanmar, Bhutan and China.

Textiles and handicrafts from the stateare in demand in neighbouringcountries.

Recently, the state received approval forthe first border haat along the Indo-Myanmar border

Policy and fiscal incentives

Both the state and centralgovernments offer huge fiscal andpolicy incentives for the developmentof thrust sectors.

The State Industrial Policy, 2008, andAgriculture Policy 2001 support theseactivities. Additionally, the centralgovernments North East Industrialand Investment Promotion Policy(NEIIPP), 2007, promotes investment

2012-13

Hydropowergenerationcapacity:97.57MW

Pipeline

96 projectshaving a

generationcapacity of47,000 MW

AdvantageArunachal

Pradesh


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Located in the Northeast of India, Arunachal Pradesh is the

largest of the seven sister states. It shares its border withthe neighbouring countries of Bhutan in the west, China(Tibet) in the north and north-east and Myanmar in the eastand southeast. The Indian states of Assam and Nagalandborder it in the south.

The most commonly spoken languages are Assamese,Bengali and Hindi. English is the official language andprimary medium of education in the schools.

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, Tirapand Siang.

Sources: Government of Arunachal Pradesh website,(http://arunachalpradesh.nic.in), Ministry of Development of North Eastern

Region, *Provisional Data Census 2011

Parameters ArunachalPradesh

Capital Itanagar

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)* 0.72

Female population (million)* 0.66

Sex ratio (females per 1,000 males)* 920

Literacy rate (per cent)* 67.0

Source: Maps of India


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ParameterArunachal

PradeshAll-States Source

Economy

GSDP as a percentage of all states GSDP 0.1 100Planning Commission Databook, 2012-13,

current prices

Average GSDP growth rate (%)* 17.5 15.6Planning Commission Databook, 2004-05 to

2012-13, current prices

Per capita GSDP (US$) 1,638.8 1,414.2Planning Commission Databook, 2004-05 to

2012-13, current prices

Physical Infrastructure

Installed power capacity (MW) 249.4 225,133.1 Central Electricity Authority, as of May 2013

Wireless subscribers (No) 8,960,542^ 867,803,583Telecom Regulatory Authority of India, as of

March 2013

Broadband subscribers (No) 7,781 15,050,000**Ministry of Communications & Information

Technology, as of December 2012

National Highway length (km) 2,027 79,116Ministry of Road Transport & Highways, as of

March 2013

Airports (No) 5^^ 133 Airports Authority of India

*Calculated in Indian rupee terms, **As of March 2013,^Combined figures for the Northeast states comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura, ^^non operational


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ParameterArunachal

PradeshAll-States Source

Social Indicators

Literacy rate (%) 67.0 74.0 Provisional data Census 2011

Birth rate (per 1,000 population) 19.8 21.8 SRS Bulletin (www.censusindia.gov.in), 2012

Investment

Outstanding investments (US$ billion) 205.1 10,498.3 CMIE (2012-13)

SRS: Sample Registration System


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776.0

848.0 907.2 1,195.3

1,238.7

1,576.2

1,916.2

2,322.9

2,338.6

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

At current prices, the gross state domestic product (GSDP)of Arunachal Pradesh was US$ 2.34 billion in 2012-13.

Arunachal Pradeshs GSDP grew at a compound annualgrowth rate (CAGR) of 17.5 per cent* from 2004-05 to 2012-13. This was faster than Indias total GDP growth of 15.6per cent*.

Source:Planning Commission Databook, 2012-13*Calculated in Indian rupee terms,

GSDP of Arunachal Pradesh at current prices(in US$ million)

CAGR17.5%*


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709.2 776.6831.5

1,095.21,132.4

1,442.3

1,783.6

2,158.1 2,143.5

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

At current prices, the net state domestic product (NSDP) ofArunachal Pradesh was US$ 2.14 billion in 2012-13.

Arunachal Pradeshs NSDP at current prices grew at aCAGR of 17.6 per cent* between 2004-05 and 2012-13.This was much faster than Indias total NDP growth of 15.6per cent*.


Note: CAGR - Compound Annual Growth Rate

NSDP of Arunachal Pradesh at currentprices (in US$ million)

CAGR17.6%*


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647.7 691.8 722.9

931.7 944.9

1,176.3

1,400.7

1,662.8 1,638.8

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

In 2012-13, the states per capita GSDP, at current prices,was US$ 1,638.8 as compared to US$ 647.7 in 2004-05.

The per capita GSDP grew at a CAGR of 15.0 per cent*between 2004-05 and 2012-13.



Per capita GSDP (in US$)

CAGR15.0%*


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592.0 633.6 662.5

853.7 863.8

1,076.4

1,303.8

1,544.8 1,502.1

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

The states per capita NSDP in 2012-13 was US$ 1,502.1as compared to US$ 591.9 in 2004-05.

The per capita NSDP increased at an average rate of 15.0per cent* between 2004-05 and 2012-13.



Per capita NSDP (in US$)

CAGR15.0%*


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37.4%46.4%

29.5%24.5%

33.0% 29.1%

2004-05 2012-13

Primary Sector Secondary Sector Tertiary Sector

The primary and tertiary sectors dominate the compositionof GSDP of the North Eastern state. In 2012-13, the primarysector contributed 46.4 per cent* to the states GSDP atcurrent prices, followed by the tertiary sector (29.1 percent*) and the secondary sector (24.5 per cent*).

At a CAGR of 20.8 per cent*, the primary sector has been

the fastest growing sector among the three sectors from2004-05 to 2012-13. The growth was driven by agriculture,forestry and logging.

The tertiary sector grew at a CAGR of 15.7 per cent*between 2004-05 and 2012-13. The growth has been drivenby trade, hotels, real estate, banking, insurance, transport,communications and other services.

The secondary sector grew at a CAGR of 14.8 per cent*between 2004-05 and 2012-13.

Source:CMIE*Calculated in Indian rupee terms,


GSDP composition by sector

CAGR**

20.8%*

15.7%*

14.8%*


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Source: NEDFI Databank, Ministry of Agriculture, Indian HorticultureDatabase 2011, National Horticulture Board

CropAnnual production

2010-11(000 metric tonnes)

Paddy (rice) 233.9

Vegetable 98.1

Maize 64.7

Ginger 52.3

Potato 35.8

Pineapple 34.4

Oil seeds 29.2

Sugarcane 28.9

Millet 20.0

Apple 10.0

Cereals, oil seeds, ginger, potato, sugarcane and pineappleare some of the key agricultural products of the state.

In 2009-10, the total food grain production in the state was325,000 metric tonnes.

The total paddy (rice) production in the state was 233,992

metric tonnes and total maize production in the state was64,714 metric tonnes in 2010-11.

Major cereal crops of the state are rice, wheat, maize andmillet.


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According to the Department of Industrial Policy &Promotion (DIPP), the cumulative FDI inflows from April2000 to December 2012 amounted to US$ 78 million*.

In 2012-13, the outstanding investments in the state wereUS$ 205.1 billion.

Of the total outstanding investments in 2012-13, theelectricity sector accounted for around 94.8 per centfollowed by the services sector (5.2 per cent).

Source:CMIE

Break up of outstanding investments by sectors(2012-13)

94.8%

5.2%

Electricity

Services

*FDI inflows for RBIs (Reserve Bank of Indias) Guwahati-region, whichincludes Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram,

Nagaland and Tripura.


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Arunachal Pradesh has about 12,169 km of major districtroads.

Arunachal Pradesh State Transport Services wasestablished in 1975. Its f leet strength rose from two buses to233 buses, which are now operating on 251 routesconnecting all the motorable and remotest administrativecentres of the state. It also connects the adjoining states ofAssam and Meghalaya.

Arunachal Pradesh has a road density of 25.74 km per 100sq km, as of March 2011; while the national average is 115km per 100 sq km.

As of March 2013, about 2,027 km of national highways runthrough Arunachal Pradesh, connecting the state with therest of India.

Under Arunachal Pradesh Package for Roads & Highways,in 2009, the central government approved projects forimproving 1,472 km of national highways and 847 km ofstate roads. This is under the Prime Ministers package.

To provide impetus for growth, as per the SpecialAccelerated Road Development Programme for NorthEastern region (SARDP-NE), a total of 10,141 km of roads

are to be re-developed to improve the connectivity of thedistrict headquarters and the remote places of the Northeastregion with state capitals.

Source: Maps of India


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Sources:Arunachal Pradesh State Action Plan on Climate Change,Government of Arunachal Pradesh,

Ministry of Road Transport & Highways

Road infrastructure Road length (km)

National highways (km) 2,027

Major district roads 12,169

Rural roads 5,455

Total 21,555

The SARDP-NE programme envisages providing roadconnectivity to all the district headquarters of the Northeastregion with minimum two-lane highway standards.

Under the programme, the strategic 2,400 km Trans-Arunachal Highway Project (National Highway 229), whichwill link Tawang to Mahadevpur, has been announced. The

project is expected to be completed by 2017.


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In the 1980s, air services were provided by Vayudoot, a JVof Indian Airlines and Air India, which ceased operations in1997. In December 1995, the state government introducedpassenger flight services with a fleet of two Pawan Hanshelicopters: a nine-seater Dauphin helicopter and a 24-seater MI-172 type helicopter.

Initially operating on the Naharlagun (close to Itanagar) toGuwahati and Mohanbari (both in Assam) route, the servicenow also connects major local towns including Tawang,Ziro, Pasighat, Daporijo, Along, Yingkiong, Roing, Tezu,Khonsa, Changlang, Namsai and Anini.

A greenfield airport has been proposed near the capital,Itanagar, for which environmental clearance has beenreceived in April 2010. Ministry of Civil Aviation has alsoplanned to operationalise airports at Daporijo and Tezu.

In a major thrust, the proposed 20 km Harmuti (Assam) toNaharlagun route is expected to be operational in 2013,connecting the state to the rest of India. In addition, theRupai-Parsuramkund railway track has been proposed as anational project to develop Parsuramkund as a Hindupilgrimage site.

Domestic airport^

Inter-state helicopter service*

Sources:Airports Authority of India; Department of Civil Aviation,Government of Arunachal Pradesh.North East Frontier Railway (NEFR)

^Non-operational* Major route


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As of May 2013, Arunachal Pradesh had a total installedpower generation capacity of 249.44 MW. It consisted of129.62 MW under central utilities, 119.79 MW under stateutilities and 0.03 MW under the private sector.

Hydropower is the major source of electricity generation inthe state, contributing around 97.57 MW of installed

capacity, followed by 103.94 MW of renewable energyresources and 47.93 MW of thermal power.

Arunachal Pradesh has been focusing on developing itshuge hydropower potential. The state set up the Departmentof Hydro Power Development in 2003 for the developmentof micro/mini/small hydro projects, renovation andmodernisation of existing projects, and survey andinvestigation of new potential sites for hydropowerdevelopment. There are 63 projects currently underoperation having a capacity of 35.19 MW. Source:Central Electricity Authority

*As of May 2013Department of Hydro Power Development, Arunachal Pradesh

Installed power capacity (MW)

180.1

201.9213.3 213.7

249.4 249.4

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14*


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Telecom infrastructure (March 2013)

Wireless subscribers^ 8,960,542

Wire-line subscribers^ 189,884

BSNL subscribers 342,113*

Tele-density of BSNL subscribers(per cent)

27.6*

Telephone exchanges 107*

Post Offices 295**

Sources: Telecom Regulatory Authority of India, India Post,Department of Telecommunications, Annual Report 2012-13,

^Combined figures for the Northeast states comprising ArunachalPradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura for

March 2013, *As of December 2011, **As of April 2013

As of December 2011, Arunachal Pradesh had 107telephone exchanges and 342,113 subscribers of BharatSanchar Nigam Limited (BSNL).

The state had a tele-density of 27.6 per cent of BSNLsubscribers, as of December 2011. Overall tele-density is67.78^.

The Universal Service Obligation Funds (USOF)-supportedAugmentation, Creation and Management of Intra-DistrictSDHQ-DHQ OFC^ Network scheme of the Department ofTelecom, Government of India, is creating an optical-fibrenetwork with bulk bandwidth. BSNL is the main contractorfor this network setup.

As of April 2013, the state had 295 post offices.

^SDHQ: Sub-District HeadquarterDHQ: District HeadquarterOFC: Optical-Fibre Cable

Some of the major telecom operators in ArunachalPradesh

Bharat Sanchar Nigam Limited (BSNL), Bharti Airtel

Aircel Limited, Vodafone, Reliance Communications,

Idea Cellular

Source: Telecom Regulatory Authority of India


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Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), three projects costing US$ 39.58 million havebeen sanctioned for Itanagar, the state capital.

Projects for water supply, solid-waste management and urban transport have been identified for development under theJNNURM.

The urban transport project was approved in 2009 while two other projects on water supply and solid-waste management

were approved in 2007. As of March 2013, US$ 28.2 million of funds have been released for the projects.

Under the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), US$ 8.63 million has beenallocated for development of roads, solid waste management and storm drainage systems.

Source: JNNURM, Ministry of Urban Development, Government of India


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Literacy rates (%)

Literacy rate 67.0

Male literacy 73.7

Female literacy 59.6

Arunachal Pradesh has a literacy rate of 67.0 per centaccording to the provisional data of Census 2011; the maleliteracy rate is 73.7 per cent and the female literacy rate is59.6 per cent.

The state has started the Sarva Shiksha Abhiyan (SSA) the national flagship programme on education to achieve

universal elementary education in a mission mode. As ofMarch 2012, around 6,153 teachers had been recruited andover 341,313 children (between 6-14 years of age) wereenrolled under the SSA.

In 2011-12, 19,548 students were enrolled in 31 institutes ofhigher education. Among the students enrolled in highereducation courses, 45.2 per cent were girls.

There is a proposal to establish five degree colleges, sevennew polytechnics, and five new technical/professionalcolleges in the state.

The NE states (excluding Assam), with an HDI value of0.573, ranked sixth best in India on the HumanDevelopment Index in 2007-08. In 1999-2000, they wereranked ninth with an HDI of 0.473.

Source: Census 2011 (provisional data),Directorate of higher and technical education


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Major higher educational institutes in ArunachalPradesh

North Eastern Regional Institute of Science andTechnology*, 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

*Deemed university^Under the Central Agricultural University

Higher education infrastructure(As of January 2012)

Universities/deemeduniversities

2

Degree colleges 16

Professional/technical colleges 10

Polytechnic 2

National Institute of Technology 1

Source: Directorate of Higher and Technical Education,Government of Arunachal Pradesh


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Source: Department of AYUSH, Ministry of Health & Family Welfare,Government of India*As of August 2011

Health indicators of Arunachal Pradesh (2011)

Birth rate (per thousand persons) 19.8

Death rate (per thousand

persons)

5.8

Infant Mortality Rate

(per thousand live births)32

To support its huge rural population, Arunachal Pradeshhas a three-tier public healthcare infrastructure comprisingsub-centres, primary health centres and community healthcentres. In addition, there are district hospitals in mostdistricts.

As of March 2011, there were 14 district hospitals, 48

community health centres, 97 primary health centres and286 sub-centres in the state.

Health infrastructure in Arunachal Pradesh(March 2011)

District hospitals 14

Community health centres 48

Primary health centres 97

Sub-centres 286

Ayurvedic hospitals 11*

Ayurvedic dispensaries 2*

Homoeopathic hospitals 1*

Homoeopathic dispensaries 55*

Source: Sample Registration System (SRS) Bulletin 2012(www.censusindia.gov.in)


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There are 26 major tribes and many sub-tribes in Arunachal Pradesh who have rich cultural heritage and follow distinctlanguages, costumes and festivals.

Varied culture of the tribes are reflected in bamboo, wood and cane handicrafts, carpets, traditional ornaments andpaintings.

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 inNirjuli and Nehru Stadium in Khonsa.

The key tourist destinations are Parasuram Kund (Lohit), the Namdapha National Park (Changlang), the Ita Fort andJawaharlal Nehru State Museum (Itanagar), the Tawang Monastery (Tawang) and the Sela Lake (Bomdila).

Source: Tourism Department, Government of Arunachal Pradesh


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Source: Department of Industries, Government of Arunachal Pradesh

Arunachal Pradesh has 12 industrial estates located indifferent districts and spread over a total area of 51.8hectare. These industrial estates have been developed inland-areas ranging from 4,540 to 202,342.8 square metres,with the primary objective of growth and development ofsmall scale industries.

In addition, the state government has also notifiedintegrated infrastructure development centres, industrialgrowth centres and industrial areas to support industrialgrowth.

Notified industrial estates

Location District

Deomali Tirap

Khonsa Tirap

Pasighat East Siang

Tawang Tawang

Tippi West Kameng

Wanghoo West Kameng

Naharlagun Papumpare

Chandranagar Papumpare

Namsai Lohit

Changlang Town Changlang

Khachang Changlang

Bam West Siang


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Source: Department of Industries, Government of Arunachal Pradesh

Notified integrated infrastructure developmentcentres

Location District

Deomali Tirap

Tippi West Kameng

Dirang West Kameng

Iduli Dibang Valley

Balinong Changlang

Notified industrial areas

Location District

Bhalukpong West Kameng

Roing Dibang Valley

Tezu Lohit

Banderdewn Papumpare


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The state government has set up district industries centres (DICs) in all districts. These DICs play a vital role in industrialdevelopment by providing services to the entrepreneurs viz., identification of suitable schemes, preparation of projectreports, arrangement for providing required plant, machinery and raw-materials, assistance in availing incentives andfacilities provided by both central and state governments, liaison with all development departments and financial institutionsto provide assistance to the 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, aromaticgrass, 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.)


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Facilitation and development of industrial infrastructure including power, communications, etc., under public privatepartnership.

Food processing industries.

Engineering and allied industries (rolling mill, steel mill, etc).

Tourism


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The resources, policy incentives and climate in the statesupport investments in mining and mineral products(including cement), tissue culture and floriculture, plantationcrops (tea, rubber, etc.) and agro-based industries.

North Eastern Development Finance Corporation Limited isengaged in catalysing the industrial growth of the

Northeastern region (including Arunachal Pradesh) byproviding counseling, timely advice and assistance forbuilding quality enterprises.

The central government also approved the North EastIndustrial and Investment Promotion Policy (NEIIPP), 2007.The policy provides several incentives: incentive onbusiness expansion, 100 per cent excise duty and incometax exemption, capital investment subsidy, interest subsidyand insurance premium reimbursement.

The Department of Industries has set up District IndustriesCentres (DICs) and Sub-District Industries Centres (Sub-DICs) for the industrial development of small scale, tiny andvillage industries.

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

The Department of Industries, Government of ArunachalPradesh, is responsible for promoting industrial activitiesin the state to provide employment opportunities to therural and urban people.

The DICs also help the local entrepreneurs in identifyingsuitable schemes, preparing feasibility reports, arranging

supply of tools and equipment, providing credit facilities,etc.


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As of May 2013, Arunachal Pradesh had a total installedpower generation capacity of 240.04 MW.

Around 40.6 per cent of Arunachal Pradeshs installedpower generation capacity was based on hydro energy(97.57 MW). The Department of Hydropower Development,Arunachal Pradesh, is wholly entrusted with the design,

construction, operation and maintenance of hydropowerprojects in the state.

Under NEIIPP, 2007, power generating plants get incentivesas governed by the provisions of Section 81A of the IncomeTax Act. In addition, power generating plants (based on bothconventional and non-conventional sources) with a capacityof up to 10 MW are eligible for capital investment subsidy,interest subsidy and comprehensive insurance.

On account of its hilly terrain and abundant rivers, ArunachalPradesh is estimated to have hydropower potential of over57,000 MW (through mega projects).

Key regions for tapping hydropower include Dibang,Tawang, Subansiri Upper, Subansiri Middle, Kameng andLohit.

Some of the key players

NTPC Ltd

NHPC Ltd

North Eastern Electric Power Corporation(NEEPCO)

Bhilwara Energy Ltd

The government has invited domestic power companies inthe region to develop hydropower plants.


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NTPC Ltd

NHPC Ltd

North Eastern Electric

Power Corp (NEEPCO)

Bhilwara Energy Ltd

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, coalmining, 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.

NHPC Limited (formerly known as National Hydroelectric Power Corporation Limited) is a

public-sector major in hydroelectric power generation. The company already has four ongoing projects with an installed capacity of 6,400 MW. Two of

these are located in the Tawang district, one in the Dibang district and one in Subansiri Lowerdistrict.

North Eastern Electric Power Corporation is a central PSU involved in power generation inNortheastern region. It is one of the oldest power generating companies and controls 55.0 percent of the regions installed capacity.

The company has 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 has signed three MoUs for development of hydropower projects in the state atTawang, Angoline and Malinye. The companys revenues stood at US$ 1.03 billion in 2010-11.


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Hydro power projects in the North East

Central sector Private State/unallocated

No ofschemes

Installedcapacity

(MW)

No ofschemes

Installedcapacity

(MW)

No ofschemes

Installedcapacity

(MW)

Totalschemes

Totalinstalledcapacity

(MW)Arunachal

Pradesh3 4,400 88 31,587.5 5 10,990 96 46,977.5

Assam - - - - 5 360 5 360

Manipur 2 1,566 - - 7 573 9 2,139

Meghalaya 1 85 5 974 9 1,155 15 2,214

Mizoram 5 2,196 - - 1 80 6 2,276

Nagaland - - 1 165 2 190 3 355

Tripura - - - - - - - -

Sikkim 2 730 20 2,531 1 90 23 3,351

Total 13 8,977 114 35,257.5 30 13,438 157 57,672.5

Source: Ministry of Power, Annual Report 2011-12


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Arunachal Pradesh has been identified as the powerhouse of the country. In the Twelfth Five Year Plan, a total of 96hydropower projects having a generation capacity of 47,000 MW were announced for the state.

Three projects with an aggregate generation capacity of 4,400 MW are in the central sector. There are 88 projects with acapacity of 31,587.5 MW in the private sector.

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 and2017.

The Ministry of Environment and Forests (MoEF) granted pre-construction scoping clearances to over 50 projects under theEIA notification 2006. Final environmental clearance has been awarded to 13 projects.

Arunachal Pradesh would get 12 per cent power from each project for free, thus making it a power surplus state and enablingit to generate revenues through sale to other states.


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Arunachal Pradesh has considerable mineral reserves, andpreliminary studies have highlighted economic mineral

deposits in considerable quantity.

The state has reserves/resources of coal in NamchikNamphuk Coalfields; dolomite in West Kameng district;fuller's earth in Tirap district; graphite in Lohit, Upper Siangand Upper Subansiri districts; limestone in Dibang Valley,Lohit, Upper Siang and Upper Subansiri districts.

The State Industrial Policy, 2008, of Arunachal Pradesh listsmineral-based industries (such as ferro-alloys, cementplants, etc.) as thrust sectors. The states mining activitiesare managed by the Arunachal Pradesh MineralDevelopment and Trading Corporation Limited (APMDTCL).

During 2010-11, mineral production generated US$ 78

million for the states exchequer. Total extraction of coalsince April 2007 to February 2012 was one million tonnes.In 2010-11, total coal production in the state was 299,000tonnes.

Sources:Indian Bureau of Mines, *As of March 2010

Source: Maps of India Reserves/resources of minerals in ArunachalPradesh (as of March 2011)

Ore/mineral Reserves (million tonnes)

Coal 90.23

Dolomite 77.83*

Limestone 482.79*

Graphite 72.75*

Fuller's earth 20.01*

Quartzite 5.27*


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Major agro and forest based industries in the state relate totea, fruit, non-timber and plywood industries. Around two-thirds of the states population is dependent on agriculture.

The state governments New Agricultural Policy 2001 aimsto achieve higher economic growth and create jobopportunities for the rural unemployed. The state

government is focusing on improving farmer income throughhigher productivity, use of suitable farm techniques,upgrading technical competency, marketing support andavailability of a cooperative credit network.

Non-timber based industries include bamboo, cane andmedicinal plants.

The industry is characterised by many regional players;

several units have been set up by Arunachal Pradesh ForestCorporation (APFC), a government organisation.

APFC has taken up a project on capacity building forproduction of bamboo-based industrial intermediates atPoma village near Itanagar.

Arunachal Plywood Industries Limited

Arunachal Plywood Industries Limited (APIL) is

among the oldest plywood manufacturing units inthe country.

The company manufactures bamboo boards, pre-fabricated houses, pallets/crates and bamboo matboards. The pre-fabricated structures are not onlyeco-friendly, but also cost effective and longlasting.

The company has its manufacturing unit atNamsai, Arunachal Pradesh.

The State Industrial Policy, 2008, of Arunachal Pradeshlists agriculture and non-timber forest produce-basedindustries as thrust sectors.


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Tourism has grown rapidly in the recent years with eco andadventure tourism, cultural tourism and religious tourismbeing the major areas of interest. Major sports of interest totravellers include angling, boating, rafting, trekking andhiking.

Arunachal Pradesh is an "Orchid Paradise, accounting for

601 species of orchids or 52 per cent of the species knownin India. An orchid research centre has been established atTipi to promote orchid conservation, research anddevelopment.

The popular tourist spots include Parashuram Kund,Tawang monastery, Bhismaknagar, Malinithan,Akashiganga, Namdapha, Itanagar and Bomdila.

The State Industrial Policy, 2008, provides incentives fordeveloping tourism infrastructure, with a special focus onpublic-private partnerships in tour operations, hotels andresorts. The central governments Look East Policy isinitiating tourism as a means to increase trade with otherSouth East Asian countries.

Arrival of domestic tourists in the state, has increased at aCAGR of 26.5 per cent between 2007 and 2011.

Source: Ministry of Tourism, Government of India

In 2009-10, Arunachal Pradesh had received financialassistance from the central government for developingsustainable rural tourism. The project aims at promotingtraditional rural art, craft, textile and culture to develop therural economy.

Arrivals of domestic tourists in ArunachalPradesh (in 000s)

91

149

195

227 233

2007 2008 2009 2010 2011


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Textile is a grass-roots industry in Arunachal Pradesh and provides employment to mainly women. Most of the units arehome-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 productsinclude skirts (gale), shirts (galuk), cotton shawls, side bags, curtain cloth, etc.

Carpet making is one of the important occupations in the districts of Tawang, West Kameng, Changlang and Upper Siang.

The states carpets have received national and international repute owing to their quality. The carpet weaving industry ispromoted through the Government Craft Centre.

Sericulture is also practised in the state; in 2011-12, the state produced about 20 Metric Tonnes of raw silk. To give a majorthrust to this business, Arunachal Pradeshs government is reorganising the existing seed production centre by providingadditional operational buildings and technical staff. It is also supporting rearers by supplying the required seeds, plantingmaterials and rearing appliances, among others.

The Department of Textile & Handicraft(s), Arunachal Pradesh, supports the textile sectors development. It provides self-

employment opportunities to weavers and artisans through several development projects. There are 88 crafts centresimparting training in different trades. The department has 15 Emporia, three mini sales Emporia and five showrooms formarketing handloom and handicraft products manufactured by local artisans.

Under the Integrated Handloom Development Scheme, 19 clusters were taken up in the state between 2007-08 and 2011-12.

Source: Department of Textile & Handicraft(s), Arunachal PradeshCentral Silk Board, Ministry of Textiles Government of India


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S No List of approvals and clearances requiredConcerned department of

state

1 Incorporation of company/partnership firm/co-operatives Registrar of Companies

2 Registration, Industrial Entrepreneurs Memorandum (IEM), industrial licensesDepartment of Industries

3 Permission for land use

4 Allotment of land

Arunachal Pradesh IndustrialDevelopment and FinancialCorporation Limited /Department of Industries

5 Site environmental approvals Ministry of Environment andForests, Government of India;Arunachal Pradesh StatePollution Control Board(APSPCB)

6 No-objection certificate and consent under Water and Pollution Control Act

7 Registration under States Sales Tax Act and Central and State Excise Act Department of Tax andExcise, Government ofArunachal Pradesh8 Commercial taxes

Source: Government of Arunachal Pradesh


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S No List of approvals and clearances requiredConcerned Department of

State

9 Sanction of power

Department of Power,Arunachal Pradesh10 Power feasibility

11 Power connection

12 Approval for construction activity and building planRespective DistrictMunicipality

13 Water and sewerage clearanceDepartment of Public HealthEngineering

14 Water connection

Source: Government of Arunachal Pradesh


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Agency Description

Department of Industries

The Department of Industries is the main executive and regulatory agencyfunctioning under the state government. It oversees and monitors the overallindustrial development activities in the state.

The department is engaged in various activities such as:a) Formulation of Industrial Policy and setting up of industrial estates/growth

centres/ district industries centres.b) Registration and regulation of industries.c) Providing financial assistance to small scale and other industries.d) Distribution of scarce and indigenous raw-materials to different industrial

units.e) Apprenticeship Training Programs through ITIs and other industrial

development related activities.

Arunachal Pradesh Industrial

Development and Financial CorporationLimited (APIDFC)

Incorporated under the Companies Act, 1956, in August 1978. Set up to promote and finance industries in Arunachal Pradesh. Development of 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).

Arunachal Pradesh EnergyDevelopment Agency (APEDA)

State Designated Agency (SDA) for implementation and enforcement of theEnergy Conservation Act, 2001, in coordination with the Bureau of EnergyEfficiency (BEE), Ministry of Power, Government of India.

APEDA is also the state nodal agency for projects connected with CleanDevelopment Mechanism (CDM).


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Agency Description

North Eastern Development FinanceCorporation Limited (NEDFi)

NEDFi is promoted by leading public financial institutions: IndustrialDevelopment Bank of India (IDBI), State Bank of India (SBI), Life InsuranceCorporation of India (LIC), Small Industries Development Bank of India(SIDBI), Industrial Finance Corporation of India (IFCI), Industrial Credit andInfrastructure Corporation of India (ICICI), Specified undertakings of Unit Trust

of India (SUUTI), General Insurance Corporation of India (GIC) and itssubsidiaries. Incorporated in August 1995, NEDFi is headquartered inGuwahati, Assam, and works under the administrative control of the Ministry ofDevelopment of North Eastern Region (DoNER), Government of India.

Services micro, small, medium and large enterprises through facilities such asproject and equipment finance, working capital finance, schemes fordevelopment of entrepreneurial skills and market development for productsfrom the Northeast.

North Eastern Handicrafts andHandloom Development Corporation

(NEHHDC)

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 Providing financial, technical and other assistance to craftsmen, weavers, co-

operatives and other establishments Provide training for upgrading traditional skills


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Agency Contact information

Department of Industries

Government of Arunachal PradeshUdyog Sadan, ltanagar -791111

Phone: 91-360-2212 323/ 2214 456Fax: 91-360-2211 569

E-mail: [email protected]

Arunachal Pradesh Industrial Development andFinancial Corporation Limited(APIDFC)

C Sector, Near Petrol PumpItanagar - 791111

Phone: + 91-360-2211 763, 2212 012

Arunachal Pradesh Energy Development Agency(APEDA)

Urja Bhawan, Tadar Tang MargPost Box No 141,Itanagar-791111

Arunachal PradeshPhone: 91-360-2211 160,

E-mail: [email protected]

North Eastern Development Finance Corporation Ltd(NEDFi)

NH-52A, Main Road, E-Sector,Itanagar -791111,

Arunachal PradeshPhone/Fax: 91-360- 2217 694


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Cost parameter Cost estimate Source

Hotel costs (per room per night) US$ 8 to US$ 75 State Tourism website

Power cost (per kWh)Commercial: US 7.9 cents to US 9.9 centsIndustrial: US 6.2 cents to US 8.3 cents

Department of Power, Government ofArunachal Pradesh

Labour cost (minimum wages perday)

Unskilled: US$ 3.0 to US$ 3.4Skilled: US$ 3.2 to US$ 3.6

Ministry of Labour and Employment,Government of India

Water (per 1,000 litres) Commercial and industrial: US 15.7 cents Industry sources


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Hydro Power Policy 2008

To harness hydropower potential of the state in a manner that is consistent with the provisions ofthe Electricity Act, 2003 and the National Electricity Policy and other policies formulated in theAct.

To accelerate the pace of hydropower development through participation of both the centralpublic sector undertakings and private power developers, as also by formulating public privatepartnerships.

To provide for creation of social and development infrastructure through hydropowerdevelopment.

Read more

Objectives

State Industrial Policy 2008

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

To promote export oriented industrial units

Read more

Objectives
http://www.arunachalplan.nic.in/html/docs/HydroPowerPolicy2008.pdfhttp://indarun.gov.in/htm/policies/IndPolicy.pdfhttp://indarun.gov.in/htm/policies/IndPolicy.pdfhttp://www.arunachalplan.nic.in/html/docs/HydroPowerPolicy2008.pdf


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North East Industrial and Investment Promotion Policy (NEIIPP) 2007

To promote the Northeast region as an attractive investment region through concessions andincentives.

Read more

Objective

Small Hydro Power (SHP) Policy 2007

To facilitate and promote the growth of small hydropower plants through private participation,thereby increasing employment opportunities in the state.

Read more

Objective

Agriculture Policy 2001

To achieve higher economic growth and create job opportunities for the rural unemployedthrough agriculture and allied sectors.

Read more

Objective
http://indarun.gov.in/htm/policies/neiipp2007.pdfhttp://www.arunachalhydro.org.in/pdf/Monitoring/Small%20Hydro%20Power%20Policy%202007%20latest.pdfhttp://arunachalpradesh.gov.in/nnap.htmhttp://arunachalpradesh.gov.in/nnap.htmhttp://www.arunachalhydro.org.in/pdf/Monitoring/Small%20Hydro%20Power%20Policy%202007%20latest.pdfhttp://indarun.gov.in/htm/policies/neiipp2007.pdf


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Average for the year

YearINR equivalent of one

US$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

2012-13 54.31

Exchange rates


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Arunachal Pradesh - August 2013

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