CHAPTER 6

PROSPECTS FOR SMALL SCALE INDUSTRIES

^

Contents 6.1. Introduction 6.2. Government Policy Initiatives 6.3. Potential Industries in Assam Hills 6.3.1. Agro-based industries 6.3.2. Forest-based industries 6.3.3. Mineral-based industries 6.3.4. Engineering based industry 6.3.5. Textile based industries 6.3.6. Livestock based industries 6.3.7. Service-based Industry 6.3.8. Miscellaneo us industries 6.4. Plantation Industry 6.5. Tourism Industry 6.6. Conclusion

Page No. 198-199 199-200 200-224

224-225 225-226 226-227

6.1. INTRODUCTION

The Northeast Region offers good scope for small industry development

based on its resources, demand, environment and skill. The region is known for

its resource endowment. The existing industrial activities are based on the

agriculture, horticulture, forest and mineral resources and also on traditional

skill and craftsmanship of the people (HE, Vision 2001). The scope of large

scale industries in the region has been limited particularly in the hilly region;

hence the only alternative is the growth of SSI sector. This sector has vast

potential in terms of employment, output, export promotion, expansion of base

for indigenous entrepreneurship and dispersal of industries and entrepreneurship

skills in rural as well as backward areas (Desai, 2003).

In the foregoing chapters, a comprehensive discussion has been made

pertaining to the resource endowments of Assam Hills and the growth and

development of small scale enterprises. This chapter attempts to identify suitable

industries which have scope for development in this hilly region of the State.

The industrial development in Assam Hills has not taken place to the desired

extent due to inadequate infrastructure facilities, lack of initiation and

entrepreneurship and unfavourable socio-economic conditions etc. Exploitation

of natural resources, optimum use of available resources and exploitation of new

markets for the products a number of small scale industries based on agricultural

products, forests based products, dairy products can be established in Assam

Hills. Increase in the urban population day-by-day and the message of using

modem goods reaching the remote villages through effective

media/communication at present, a number of demand based units such as

bakery products, cattle feed, readymade garments, stationery items can be

established in both the hill districts. As the construction activity is increasing

constantly manufacturing of bricks, wooden furniture, steel furniture, fabrication

198

items, electrical appliances etc. is having a vast scope in both the hill districts.

The main objective of the study is to identify the possibility for setting up

of more industries in small-scale sector. The country accorded high priority to

this sector on account of its employment potential, comparatively less

requirement of capital, short gestation period, use of traditional skill, useful links

with medium and large scale sector, wide geographical dispersal, promotion of

balanced regional development, etc. The sustained growth of SSI sector in last 5

decades has been made possible by the special attention bestowed by the policy

makers. This has helped increase rural industrialization, per capita income and

the standard of living of the rural population.

6.2. GOVERNMENT POLICY INITIATIVES

The Central and the State Governments has been formulating and

modifying appropriate policies and progrmmes from time to time to create the

necessary industrial climate and to improve the technical knowledge and the

entrepreneurial skills of the people. The ongoing policy measures of the

Government of Assam for growth of small-scale enterprises in the State as well

as the hilly and backward areas may rotate the wheel from traditional agrarian to

modern industrial economy in the region.

First, Industrial Policies of Assam since the starts of liberalization process

in 1991 aimed to provide effective thrust for expeditious promotion and growth

of all industries through new package of incentives with a view to creating a

strong industrial base and employment opportunities in various directions.

Secondly, steps are being taken to develop infrastructural facilities

adequately, which will pave the way for industrial development in the hilly and

backward region of the State. The announcement of the comprehensive

economic package for the development of the Northeast involving Rs. 6,100

199

crore by the Central Government for a number of new and ongoing projects will

definitely improve the infrastructural status of the region.

Thirdly, the ongoing process of economic reforms has also brightened the

prospect of development of both small, medium and large scale industries

considering the huge development potential of the State. In a capital scarce

economy like Assam, the development of small scale industries will be quite

suitable.

6.3. POTENTIAL INDUSTRIES IN ASSAM HILLS

According to the Report on Industrial Dispersal of the NCDBA (Varma,

1996), the type of industries that can be promoted in the North Eastern Region

fall broadly within the following categories:

(i) Major raw material based industries, which in the northeast would be

mainly paper, cement and petrochemicals,

(ii) Industries to supply local demands, where the scale of local requirement is

large enough to sustain an economically viable unit,

(iii) Other Small Industries including agro-processing like fruit canning, meat

processing, timber processing etc.

The analysis of local resources available shows the potentiality for developing

many resource-based as well as demand-based Small-scale industries in Assam

Hills. The demand-based industries based on general consumption can be

considered and also based on the demand from the government departments.

There are many commodities of daily use, which are being imported from other

parts of the country. Many of these items can be produced inside the region with

the existing skill and manpower under small-scale industrial sector. The

government departments and public sector enterprises, military and Para military

departments are big buyers of many of the products produced by the tiny and

200

small entrepreneurs. In fact, many of the existing tiny and small entrepreneurs of

the region depend heavily on the purchase by government departments. The

existing resources, the demand, the pollution-free environment and the skill and

craftsmanship of the people of the region offer opportunities for various types of

small industries.

In view of the existence of various resources endowments in Assam Hills,

its industrial status and performance and various problems of industrial

development discussed in the preceding chapters, let us now look into the fitness

of the context to curve out the prospects of industrial development particularly

small-scale industries whatsoever the Hills region has.

Many Resource-cum-Demand based industries may be developed

depending upon its natural endowments and topographical-climatic conditions

peculiar to the Hill areas. The Department of Industries and Commerce, Govt, of

Assam Has suggested some potential industries for Assam Hills. (Appendix G).

There are various industries that have tremendous growth potential in Assam

Hills can conveniently are located on the basis of local skill, the raw-material

and the demand for the product. These industries have been classified into two

categories, viz, (a) those which are already existing in the region, but have

further potential for expansion; and (b) those are non-existent, but posses

enough potential for their growth and development in the region. Following

resource-cum-demand based industries can be set up and developed in Assam

Hills.

6.3.1. AGRO-BASED INDUSTRIES

The economy of Assam Hills has been predominantly agriculture oriented

since time immemorial. Agro industries by using locally available raw materials

and indigenous know-how open opportunities for educated skilled and

uneducated manpower. The most important aspect of agro industrial

201

development is the development of the tertiary sector of the economy i.e.

transport sector, communication and banking in rural areas. The availability of

paddy husk, rice bran, straw, fruits and vegetables etc. in the hilly region offer

tremendous scope for setting up of small-scale agro based industries. In Assam

Hills, there is great scope for developing effective linkages between SSI and

agriculture. The strategy for the district suggested high priority for development

of agriculture and village industries (DICC, Haflong). There is great scope for

manufacturing and service sector units of small and medium size in the

agricultural sector (Sharma, 1998). The Govt, of Assam provided additional

State Capital Investment Subsidy of 5% subject to a ceiling of Rs.5 lakhs for

Agro & Food processing industries in the Industrial policy of 1997. Besides,

incentive also provided to the extent of 50% of the cost payable for getting FPO

license/AGMARX/Trade Mark for the products for food processing industries

subject to a maximum ceiling of Rs.l lakh.

Agricultural products of Assam Hills comprises of paddy, maize, mustard

and oilseeds, cotton, sugar cane, ginger, turmeric and such other crops.

Therefore, it is but natural that agro-based industries should receive the top most

priority with a view to achieve the goal of small-scale units for mass production

of goods. In Assam Hills total area under oil seeds and horticultural crops is

22.59 and 57.04 thousand hectares respectively. At present Rice mills,

Flourmills, Gur making, spice grinding, bakery are the important Agro-based

industries of the Hills region. The development of horticulture and plantations

can assist in the growth of small and medium agro-based industries. Some

horticulture-based units in Assam Hills will include food processing, mushroom

cultivation and processing. All these products have a good market not only in

the hills areas of the State but also in the neighbouring States. Agro-based

202

industrial units like ginger, Citronella oil extraction, food and fruit preservation

units have been identified as having potentials in Assam Hills.

The following agro-based industries are identified and recommended by

Development Commissioner, Small Scale Industries, Govt, of India for Assam

Hills- (1) Fruit Preservation (2) Ginger Dehydration (3) Ginger candy (4) Ginger

Powder "(5) Gums from vegetable trees (6) Bakery/Mechanized (7) Dalmut

making (8) Honey (Bee-keeping) (9) Pineapple juice and (10) Ice and Ice

Candy. Besides these, some other agro-based industries can also be developed

depending upon the available raw materials, such as, Pine apple fiber extraction,

Squashes, pickles. Jams and jellies making, Spices grindings. Oil crushing,

Cheera making. Mini Rice mill. Cotton ginning etc. The following agro-based

units have the potentiality in Assam Hills.

7. Food Processing Industry

Assam Hills has been identified as an area having very good scope for the

development of food processing industries. Food processing industrial sector is

likely to grow and is expected to be an important segment of the industrial

activity. Raw materials necessary for food processing and other agro-based

industries are expected to be available from the internal source in the years to

come. There has been a great deal of emphasis on food processing industries in

Assam Hills because of its congenial agro-climatic condidon for production of

agro-horticultural crops. A number of units have already come up in the food-

processing sector. Besides the food crops, there are fruit crops, vegetable and

tuber crops. Fruit crops like pineapple, orange, banana, guava, jackfruits and

many local varieties of fruits are grown in Assam Hills. Among the vegetable

crops, tuber crops, potato, sweet potato, tapioca are grown. Principal spices

grown are ginger, turmeric, chilies and black pepper. They go waste during the

203

production season due to lack of storage and processing facilities and also for

inadequate transport facilities. Promotion of food processing industries in the

small scale sector will not only check the wastage of these valuable resources

and add value to them, but will also encourage the growers to grow more fruits.

2. Maize (Corn) Flakes (Makka)

Most of the production of maize of Assam Hills is consumed locally and

nearby districts as food item. However, the latest development in processed food

culture requires sum process before consumption. In Assam Hills about 9

thousand tones of maize is produced annually. Maize contains large quantities of

starch and there is good potential for starch processing units in the districts.

Corn flakes are used in fried form in the snacks. Generally in North India people

prefer this type of snacks in break fast with tea/coffee. Another form of use is

that further processed nutrient enriched corn flakes for direct consumption with

milk for breakfast. Almost all the people like this type of eatable items always

and hence the product is having potential market in the region. Therefore, few

units with the capacity of 400 MT per annum, manufacturing Corn flakes could

be set up in the two hill districts.

3. Fruit Canning and Preservation Unit

Due to favourable climatic condition and the altitude the fruit crops like

orange, lemon, pineapple, banana. Pomegranate etc are found to have been

successful in Assam Hills. Both the hill districts cover a huge area under fruit

cultivation. Total area under fruit and vegetable cultivation in Assam Hills is

16,807 hectares. The extension and upgradation of horticulture will create some

further scope for development provided the markets for processed fruits are

identified and developed. The Department of Agriculture has developed 16

numbers of Progeny orchards in different places in the two hill districts with the

objective of raising quality planting materials like Orange seedlings, Assam-

204

lemon-layers, Litchi layers, pears cutting, Areca nut seedlings, coconut

seedlings, banana suckers, Papaya, black pepper cutting etc. for distribution

amongst the cultivators through departmental programme. The fruit preservation

units of AHSIDC at Howaipur and Jatinga have been closed from last several

years due to financial problem and mismanagement. Sufficient quantities of hard

and soft flesh fruits go waste or perish due to over ripening, non-availability of

transport and storage facilities. But in view of the abundant production of fruit

crops there is great potentiality of fruit preservation units in the two Hills

districts. Jatinga, Harangajao is known for oranges and pineapple. Jackfruits,

guava, peach, plum pears, mango and litchi are also grown all over the Hills

region. Area under fruits cultivation in Assam Hills is given below-

Table 6.1

Area and Production of Fruit crops in Assam Hills 2001-02 Fruits

Orange Pineapple Banana Papaya

Karbi Area(ha)

881 1,723 1,687 485

Anglong Production

(tones) 8,780

26,290 22,634 7,518

N.C Area(ha)

1,705 1,770 537 308

. Hills Production

(tones) 17,391 26,001 7,786 4,696

Assam Hills Area(ha)

2,585 3,493 2,224 793

Production (tones) 26.171 48,236 30,420 12,214

Sources- Website K. Anglong & Statistical Hand Book, N.C. Hills

In order to raise the marketability of these fruit crops fruit preservation

centers should be available in the producing areas of Assam Hills. Once

preserved these fruits could last longer, thus avoiding the waste and rejection

and thereby improving the financial condition of the growers. The establishment

of fruit processing and preservation units under small-scale sector in Assam

Hills will automatically help the growth of other ancillary industries, such as the

manufacture of containers, cartons, labels, packing cases and will thus create

employment opportunities for a large number of hills people. It is recommended

that static demonstration-cum-training centers for fruit preservation should be

established at Diphu and Haflong. These demonstration centers can create

205

awareness and consciousness about fruit preservation among the local

population, which incidentally shall help the food conserving policy as well.

4. Papaya based products

Papaya is a delicious and wholesome fruit, rich in sugars and digestive

enzymes. It, is a good source of Vitamin A, and Vitamin C. Assam Hills is one

of the leading producers of papaya in the State. Area under Papaya cultivation in

Assam Hills was 793 hectares and Annual production of papaya in the two hill

districts was about 12,214 Tones in 2001-02. Most of the production is

consumed locally and nearby districts as food item. There is no papaya-based

industry in the entire hill region. Based on the availability of papaya, there is

scope for setting up of the Papaya based industries in Assam Hills like Papaya

jelly. Papaya candy. Papaya pickle. Canned papaya and cocktails, Papaya nectar.

Canning of ripe pulp. Papaya slabs, Papaya toffee and Papaya jam.

5. Juice, Pickles and Squashes making unit

In the two hill districts seasonal fruits like Orange, pineapple, pears, plum,

peaches, jackfruits etc. are grown abundantly. Even many fruits, which grow in

the hilly areas, are not properly consumed because of their wild varieties. These

can be consumed after processing i.e. making pickles, candies, juices, squashes

and jams. Iri view of the availability of these fruits in Assam Hills, a number of

small scale units can be set up for making squash, juice, jelly and jams from

Pineapple, orange, mango, plum etc. Manufacture of fruit juice, jelly squash and

jam may be developed in Assam Hills on the basis of these locally available

fruits. These types of units require huge investments in terms of machinery

particularly for processing and bottling/canning operations. There is good

market of fruit juice, jelly and jams in towns and cities. The women

entrepreneurs of Assam Hills can easily start SSI unit for manufacturing pickles

as it is considered to be a household activity. It requires neither huge investment

206

nor very high level of skills. Such units can be established after short period

training on the method of pickles preparation and preservatives.

6. Ginger Dehydration plant

In Assam hills, gingers are abundantly produced in all hill slopes under

jhum cultivation. Agriculture Department of the two districts have plans for

establishment of two Ginger dehydration plants in Karbi Anglong and two in

Mahur of N.C. Hills. A Ginger Dehydration unit was established at Mahur under

Cooperative sector, but remained closed from last several years due to crunch of

fijnd and mismanagement. On the basis of the present volume of production.

Ginger Candy and Ginger Powder units can also be established in these two hill

districts.

7. Spices, Curry powder, Oleoresin and other Essential Oils Units

A number of spices and aromatic plants grow in different parts of Assam

Hills. Spices such as ginger, turmeric, chilies, black pepper, cardamom are

produced in these areas and at present huge quantity of these are sent to out side

the region. These can be used for the production of high value export items such

as spice oils, oleoresin and other essential oils. Spices are commonly used in

every home and are necessarily purchased in small quantities by the people.

Curry powder is very popular among the housewives because of their ready to

use nature. There is great scope for setting up few numbers of spice grinding

units to meet the needs of the local people as well as the State.

8. Oil Crushing unit

Assam Hills has a total area under oil seed cultivation 23.25 thousand

hectares during the year 1998-99. Among oil seed crops, rape and mustard is

cultivated in 2/3'̂ '* of the total oil seeds area of the two districts. Considering the

availability of mustard seed Oil, crushing units can also be established in both

the Hill districts.

207

9. Cotton Ginning unit

In many places of Assam Hills cotton is cultivated which are at present

sent to out side of the districts. It is an important fiber crop of the hills region.

Total production of cotton in two Hills districts during 1998-99 was 482 bales.

There is scope for setting up few cotton ginning units in Assam Hills.

10. Pineapple Fiber Extraction unit

Assam Hills is known for its production of Pineapple. Jatinga, Harangajao

and many hill slopes are the largest pineapple growing areas. Pineapple leaves

after the harvesting as waste, which can be profitably used in the manufacture of

yarn from the pineapple leaves. The yarn can be used in the looms for weaving.

It can be done manually or by machine. Extraction is quicker and less costly

when machine is used. There is good scope for setting up of such extraction

units in Assam Hills.

11. Mini Rice Mill

Existing Rice mills of Assam Hills are not sufficient to meet the

indigenous demand of rice. Total rice production in the two hill districts

recorded production of 2.74 lakh MT during the year 1996-97 in an area of

1,612 hectares. In view of the existing demand there is ample scope for

establishing more mini rice mills every nook and corner of rice producing areas

of Assam Hills.

12. Cheera (beaten rice) making unit

There is great demand of Cheera in the Hills as well as other parts of the

State. Such .food item is used for break fast by many households. At present

some Bengali" families produce Cheera in their wooden mortars (Dhenki) for

local market. Considering the existing demand and availability of rice

production in Assam hills few cheera-making industries may be economically

viable to start.

208

13. Gur & Sugar making unit

Sugarcane is a commercial crop grown in Assam Hills. Sugar can is

abundantly cultivated in Dayangmukh, Kheroni and other plain areas of Karbi

Anglong. Total area under sugarcane was 5,449 hectares and production was

2.34 lakh tones in 1998-99. Hence, the availability of sugarcane, along with

limestone and coal, combine to form an attractive base to set up an Integrated

Sugar Complex in Assam Hills. This complex could not only manufacture sugar

(which has a high domestic demand), but also have distilleries to produce

molasses, industrial alcohols and potable alcohol. With proper extension efforts

this crop has the potentiality to feed the Khansari mills or sugar mills in its

adjoining areas.

14. Mushroom Production/Processing unit

Mushroom growing has become popular in Assam Hills during recent

years. Considering the increasing demand among local tribes and in the

neighbouring districts there is enough scope of establishing a number of

Mushroom growing units in Assam Hills. To preserve the products for later

consumption these are required to be canned; but at present no such processing

unit is available in the two Hills districts. But it is a deterrent fact that, being

highly perishable commodity, mushroom farming on commercial basis cannot

be profitable unless they are canned or processed, as it is not possible for all

mushroom growers to market the products within a reasonable time.

6.3.2. FOREST-BASED INDUSTRIES

From the point of view of small-scale industry in Assam Hills the most

promising resources are forest wealth. The forest resources of the north-east

relative to the rest of India are so substantial that there is ample scope for such

national market oriented units in this region despite its remoteness from major

markets (varma, 1996). As stated in the previous chapter (Table 2.3) at present

209

total area under forests in Assam Hills is 5.6 lakh hectares, which accounts for

36.8% of the total geographical area of Assam Hills. The forest area of hill

region has been decreasing since last few years. Forest resources such as timber,

fuel, bamboo, cane, agar wood, medicinal plants are available for exploitation in

the Hills region. Both the hill districts have some registered forest-based units

such as saw and timber mill, furniture making units, cane and bamboo units and

Citronella oil producing units. But as stated earlier due to non-availability of

timber for imposing ban order by Supreme Court in cutting of trees, many units

are either closed or become sick. However, in view of the vast and varied forest

resources scattered all over the hill areas, there is enough scope of establishing

forest base SSI units. This will not only help in industrial development, but also

help in employment generation.

The industries which are identified as per Industrial Potentiality Survey

Conducted by Joint Director of Industries (Hills) and "Udyug Sahayak" as Small

Scale Industries based on forest products for Hills region of Assam are-(l)

Wooden electrical accessories (2) Wooden toys (3) Wooden umbrella handle (4)

Stone crushing (5) Cane and bamboo products (6) Carpentry mechanized (7)

Ayurvedic Herbal/ Medicines (8) Collection of non-edible oil seeds from forest.

/. Wooden Furniture

The growth of economy and population has resulted in a rapid increase in

number of residential buildings, hospitals, commercial establishments,

educational institutions & office buildings. Furniture and fixtures are essential

items in any building whether commercial or residential and hence

corresponding increase is observed in their demand. Wood is the material

commonly used for doors, windows, cots, chairs, tables, almirahs, racks, roofs

etc. The major attraction of wooden furniture is its elegance and strength and

this has resulted in the increased use of wooden frames and wooden partition

210

walls in building construction. In Assam Hills the market for wooden furniture

has been experiencing a significant growth in recent years. The demand for

household furniture in any state depends on a combination of climatic, economic

and social factors. Based on the large availability of suitable wood in the region,

scope for new units for manufacturing wooden furniture is very bright.

2. Mechanised Carpentry unit

Due to the tempo in the construction activities within and outside Assam

Hills the demand for the wooden joinery items is increasing day by day. In view

of the availability of quality woods, Assam Hills holds good prospects for

developing Mechanised Carpentry, which can meet the increasing demand of

doors, windows and other wooden fittings. There is a great demand for the

furniture items especially in government offices, schools, colleges and hospitals.

The existing units are not well equipped and therefore cannot produce standard

quality furniture. Although many furniture units are scattered in different parts

of the Hills region, almost all these units do their works manually, which

increases the cost of furniture. Thus to meet the increasing demand of furniture

articles, such units can profitably be set up in various parts of Assam Hills.

3. Wooden Electrical Accessories unit

Almost every village and urban areas of the State and Assam Hills are

electrified. Therefore, the demand for wooden electrical accessories such as

buttons and switchboards has been increased substantially both inside and

outside the district. The entire demand of these items is met by outside supplies.

Wooden electrical accessories can be made at low cost even from the rejects of

furniture house and saw mills.

4. Wooden Handloom Accessories unit

Assam Hills is well known for handloom industries for its quality and

originality. It is mentioned earlier that almost every household in the rural areas

211

of Assam Hills are connected with the weaving industry, but most of them

produce mainly for self requirement. In recent years handloom activities have

received a great impetus both from the Central as well as State Governments,

Obviously, it has created demand for wooden handlooms among the tribal

weavers, who are economically, not sound to acquire the modern costly looms.

This shows that there is ample scope for setting up handloom Accessories units

in Assam Hills.

5. Wooden Photo Frame Unit

Cheap quality photo frame have good market both inside Assam Hills and

the State as well. Photo frame units require less capital investment and simple

machineries and thus manufacturing process is quite simple. The local

entrepreneurs have enough scope to set up such units on the basis of raw

materials available in entire Hill region of the State.

6. Cane and Bamboo Unit

In Assam Hills, Bamboos are largely grown everywhere and Cane also

grown in many places. There is great demand of Cane furniture and bamboo

products in and out side the districts. Having decorative Cane furniture set in the

drawing room is considered as the pride of the households. On the basis of

available raw materials, the local entrepreneurs can easily start cane and bamboo

units.

An analytical look at the applications for which wood is being used and

the usage of bamboo indicates that it is possible to use for all applications for

which wood is being used. The usage of bamboo has in fact been established

conclusively for categories that consume larger volumes of wood, namely, paper

pulp, plywood, construction and furniture. The timber or wood industry caters to

mass consumers. Bamboo-based intermediary products can be used by most of

them. For instance Bamboo ply board, Bamboo flooring, Bamboo pulp &

212

bamboo furniture. There are great opportunities in revival of some of the closed

plywood industries in Assam to produce bamboo-based products utilising their

existing facilities. Ready made infrastructure like Export Promotion Industrial

Park (E.P.I.P), Integrated Infrastructure Development (I.I.D's), Growth Centres

can be made use to start bamboo based industries in Assam Hills. The North

East Council (NEC) has formulated a Task force and accordingly in Assam a

State Bamboo Cell has been constituted to conduct a survey to accesses

resources and potential including promotional scheme for Tissue culture,

plantation, processing and marketing of bamboo products.

7. Citronella and Cinnamon oil Extraction unit

Citronella grass is grown in different parts of the Hills region, particularly

foot hills of Karbi Anglong and Jatinga area is well known for this grass. The

climate and soils are suitable for cinnamon and citronella grass production.

Large areas, which have been abandoned after one or two jhum cycles, are

found to be suitable for citronella and cinnamon plantation, which is also eco

friendly. Cinnamon oil is being used for medicinal and other purposes. In fact

Karbi Anglong produces substantial amount of Citronella oil. There is good

prospect for more Cinnamon leaf oil and Citronella oil extraction unit in the

Hills areas as the necessary raw materials and cheap firewood for distillation of

these grasses is available in Assam hills.

8. Match splint

Assam Hills being rich in timber has all the potentialities for

establishment of such unit. This is a common item used in every home and

hence a necessity. The small-scale units for the manufacture of this product will

be very economical in Assam Hills. Though establishment of such units require

huge capital investment they are labour intensive and will provide employment

opportunities to a large number of unemployed youth of the Hills region.

213

9. Ayurvedic/Herbal medicines

Assam Hills is endowed with rich herbal and medicinal plants and

therefore, hold good promise for the development of industries based on these

herbs and medicinal plants. After identifying the commercially viable medicinal

plants and assessing their potential, some drugs and pharmaceuticals units could

be started based on these. Some traditional medicinal plant species are in

abundance in the forests of Assam Hills. A list of these medicinal plants

available in Assam Hills is given below.

1. 2. 3. 4. 5. 6. 7. 8.

Table 6.2 List of Medicinal Plants of Assam Hills (Botanical name)

Abelneoschus moschatus Andrographis paniculata Aquilaria agallocha Artemiscia annua Asparagus recemosus Bacopa monnieri Desmodium gangeticum Gymnema sylvestris

9. 10. 11. 12. 13. 14. 15. 16.

Homalomena aramatica Mucuna preriens Piper longum Pogostemon cablin Rauvolfia serpentina Santalum album Smilax china Jylophora indica

Source-(Website) http://www.industriesassam

Since long the useful herbs of the hills region are used by the tribal people

as medicines in curing different diseases, though these are not economically

exploited till now. Therefore, these wealth have had little impact on the

economy of the Hills region. The non-use of these herbs and plants for the

industrial purposes locally is primarily due to the fact that the tribal people are

not aware of the end use of these herbs, hence have not been able to appreciate

their commercial values. But if these herbs and plants are preserved, regenerated

and harnessed judiciously and scientifically, the medicinal plant like solvent

extraction units mainly consisting of pulverizing units has a bright prospects for

its development in Assam Hills.

10. Leaf plates

In the public feasts, railway stations leaf plates are used as disposable

214

plate. Necessary and suitable leaves for making such plates are available in

Assam Hills. It requires a small press, which is, not be very costly. Though

paper plates are largely used now a day as substitute of these, yet many people

still prefer to use such leaf plates. Therefore, this industry may be developed in

the areas where suitable leaves are abundant.

6.3.3. MINERAL-BASED INDUSTRIES

Assam Hills is rich in minerals like limestone, coal, siliminate, industrial

clay, etc. The growth of mineral-based industries provides scope for

development of downstream industries. Besides downstream industries, several

units based on the mineral resources of Assam Hills can be considered. Varma

(1996) has suggested that as cement is a low value product and limestone

deposits are in the more remote parts of the Hilly region, this industry may have

to be oriented essentially to local requirements. Minerals like Beryl, Building

stone Glass and Quartz are also found in some areas. The following mineral

based industries have the potentiality in Assam Hills.

1. Coal Based Industries

Assam Hills produces considerable quantities of coal. Coal of Assam hills

is of poor quality and scattered in small parts. This coal can be used for

production of several chemicals and other industrial products.

2. Limestone Based Industries

Umrangso and Bokajan area are known for limestone deposits. The

quality of these deposits varies from cement grade to chemical grade. So far the

only large industry utilising these deposits has been the Cement industry. Assam

Hills holds great potential for the rational utilisation of limestone in various

industries. Lime is the most widely used chemical and is a raw material for

many industries. Both direct as well as indirect industries can be developed

215

optimally. At present there are three Cement Plants in N.C. Hills and two in

Karbi Anglong. In view of the available deposits of lime stone there is scope for

setting up of many units under SSI sector in Assam Hills such as Cement Plants,

Lime Plants, Calcium Carbide Plants, Precipitated calcium carbonate units and

Bleaching Power Units. Besides, a few other industries that can come up in this

sector includes Granite mining and polishing, Silimanite refractory and other

allied industries, Clay Washery, Ceramic glazed tiles. Cement based mosaic

tiles. Ceramic crockery and Ceramic low tension insulators. The lime making

units at present are extremely negligible in the hills and as a result, the local as

well as district or State demand of lime is being met from outside supply. The

development of these units will serve two main purposes- (i) such unit will

improve income levels of the people, (ii) They will not only fulfill the increasing

demand for lime, but also would augment lime availability in the State. Several

small lime plants upto a capacity of 50 TDP to meet the requirements of

building grade lime and also to supply HPC paper plants at Jagiroad and

Panchgram may be set up in Umrangso area. There is a demand-supply gap of

approximately 25% for white cement in the country, which can be made from

the high-grade limestone of Assam Hills.

3. Caustic Soda (lime based) is another product, which can be set up as a

capital-intensive project. Since Soda Ash is a primary raw material, an

integrated plant can be set up to manufacture both the products.

4. Hollow Cement Block making unit

In Assam Hills mainly in North Cachar Hills district bricks are very costly

as these are supplied from outside the district incurring extra carrying

expenditure. Use of hollow cement block requires minimum cement and at the

construction site. Such unit can be set up within the vicinity of cement plant and

where there is market potentiality.

216

5. Stone Crushing unit

Building construction is now a day a major activities in Assam Hills. The

building materials like bricks, crushed metal etc. are continuously being

consumed on a large scale. Reinforced Cement Concrete (RCC) being the most

predominantly used roofing system, the demand for materials such as cement,

steel and crushed metal (granite) continues to be on the higher side. Crushed

stone is indispensable for construction of Roads. Crushed stone of size 1.5

inches and below 3.8 inches is required by Railways, Civil and Public Works

Departments. Crushed metal is also being used for flooring and various other

concreting jobs.

There are abundant stone boulders lying in the bed of rivers as well as

higher lands of Assam Hills. Civil construction work undertaken by different

government departments. Institutions as well as by private individuals has been

growing in Assam Hills as well as in the adjacent districts for which the demand

for stone chips for such RCC construction is increasing rapidly. Besides the

requirement of the railways and PWD these stone chips are needed in building

construction. To meet the increasing demand several numbers of stone crasher

unit (permanent or movable) can be established in the Hills region. The industry

is employment oriented and support local labour on regular basis and thus will

contribute a lot to the economy of Assam Hills.

6.3.4. ENGINEERING BASED INDUSTRY

In Assam Hills, Engineering units consist of small repair workshops and

in fact, not large manufacturers. The exiting Engineering industries are

Steel/AUuminium furniture. Aluminium utensils. Gate and Grills, Battery

charging. Hollow Cement Block etc. In the recent years demand for fabrication

items has increased in Assam Hills due to their multiple uses in building and

217

construction works. Bedsides, growing use of steel furniture and other steel

equipments also create demand for fabrication. Steel almirahs find their

prominence at each and every place like Government and private offices, shops,

houses etc. Steel tables and tubular chairs are becoming increasingly popular

due to its nice appearance, durability and lightweight. They are mainly used in

offices, commercial establishments, hospitals etc. This type of industry has a

good scope in growth centers like Diphu, Bokajan, Haflong, Maibang etc where

electric power is readily available.

6.3.5. TEXTILE BASED IND USTRIES

L Decorative Textile Weaving unit

The tribal weavers are having skills in weaving; hence decorative textile

units have good potential in Assam Hills. These people weave their dresses with

their own distinct design of embroidery and display. Karbi, Dimasa, Naga, Kuki,

Mizo and all other tribes have their own traditional design of embroidery, which

are displayed in shawls, chaddar and mekhelas. Their traditional decorative

shawls have great demand inside and outside districts.

2. Handloom Textile and Handicrafts units

The people of Assam Hills have traditional skills in handloom textile and

handicraft. This traditional skill can be utilized for promoting textile-based units.

The growth of sericulture and the demand for yam in the handloom sector

provide a base for the development of Textile industries. Tribal clothes with

tribal designs have a great scope for promotion and development. The region has

skill in various types of handicrafts, which can be utilized profitably in the

growth and expansion of industries. Productivity in handloom sector will

probably increase due to introduction of improved technology. So also,

productivity in the handicraft sector will improve. These sectors will not only

218

meet the needs of internal consumers but also expected to export their products

to other parts of the country. The development of tourism will lead to further

expansion of these two sectors contributing to the overall growth of the

economy. Khadi and village industries play an important role in the process of

rural industrialization. The State has been implementing a number of projects for

the promotion of Khadi and Village Industries.

3. Readymade Garments

The demand for readymade garments in keeping with the modem clothing

has been increasing for the last several years in the Assam Hills and the State as

a whole. The spread of educational institutions, industrial and commercial

concerns have actually provided many avenues in these areas. In view of the

changing custom, taste, habit and fashions of the people and change in the living

standard, there seems to be a good scope for setting up of few units for ready-

made garments in Assam Hills. Such readymade garments include uniforms for

school children, Mosquito nets, pillow cover, and other hosiery goods; which are

commonly used dresses of different tribal people of two districts as well as other

States of the of North East. Tribal women of this region can set up such units

either individually, or it would be better if Mahila Samitee's were formed to take

up this work.

6.3.6. LIVESTOCK BASED IND USTRIES

The climate of Assam Hills is well suited to livestock rearing. The Hills

region is rich in fodder and could support and sustain a large population of

livestock. The livestock resources of Assam Hills provide good scope for

exploitation by industrial sector. Fish is a delicacy of the people of the

Northeast. Similarly, demand for egg is plenty. But Assam Hills is deficient in

the production of these essential food items. Fish and eggs are being imported

from other parts of the country, particularly from Andhra Pradesh. The potential

219

for development of livestock and livestock-based industries is yet to be

exploited. The SSI units that can be developed on the basis of livestock of

Assam Hills are-

1. Animal Husbandry and Meat Processing industries

In Assam hills, every tribal family rears pigs, poultry for their own

consumption as well as for marketing. Besides, many Piggery and poultry farms

under private initiative have been developed in recent years. Some Cattle,

Poultry and Pig farms are located both under Government and private

ownership. The Veterinary Departments of both the districts have their own

Poultry and Pig farms. However, the cattle farming have not been developed

among the tribal people due to lack of proper knowledge. To meet the large

demand-supply gap of meat in the district as well as of the North Eastern

Region, there is great scope for setting up Animal husbandry and meat

processing units in Assam Hills

2. Dairy Products/Processing unit

In Assam Hills, most of the Nepali people rear cows and even some tribal

people rear Buffaloes for commercial production of milk. The forest areas are

extensively used as grassing ground for feeding the cows and buffaloes. At

present one Mini Intensive Cattle Development Project is functioning at

Umrangso with 10 Nos. of Centres with liquid and Frozen semen, and under the

Dairy development programme one Creamery Centre is established at Umrangso

with a creamery plant. These units are not sufficient to feed the milk produced in

this region. There is enough scope for setting up more dairy product processing

units in Assam Hills. Such dairy products are generally Cream, Paneer, Ghee

and varieties of sweets.

220

3. Cattle/Poultry feed unit

There is a good demand for cattle feed which is mainly used for cows,

buffaloes, bullocks etc. Health of cattle depends on its feed. Generally

cattle/poultry feed must contain good amount of good nutrients such as Protein,

Carbohydrates, Fats, Vitamins, Minerals etc. Therefore, such cattle/poultry feed

should have right proportion of these ingredients. Cattle farming and poultry

farming have nowadays been considered as active growing activity in

agriculture or in animal husbandry. At present there is no registered

cattle/poultry feed unit in any of the two hill districts; so there is enough scope

for setting up of cattle/poultry feed units in Assam Hills.

6.3.7. SERVICE-BASED INDUSTRY

In Assam Hills, the Service-based industries are now playing an important

role in the overall economic activity. The important servicing units of Assam

Hills consists of Automobile repairing workshops, Battery charging, electrical

goods repairing, refrigeration repairing and assembling, Photostat, Lamination,

TV. Repairing and assembling, vehicle services etc. The existing as well as

potentiality of such units is explained below.

1. Automobile Repair-cum-Servicing shops

During last few years number of government vehicles as well as private

cars, Gypsies, Auto-rickshaws, Bikes, Scooters and Trucks have increased in

fast rate in Assam Hills along with other districts of the State. But there is lack

of modem automobile repair-cum-servicing centres to commensurate the

growing needs in the hills region. Though some Automobile Servicing Centres

are established in the urban and semi-urban areas, they are not well equipped to

provide all types of services. The vehicles of N.C. Hills are to send either to

Silchar or Guwahati and the vehicles of Karbi Anglong to Nagaon, Golaghat or

Guwahati for major repairing and servicing, which involve not only huge

221

expenditure but also considerable time. In the hilly route number of workshop is

very rare and in many places there is no workshops to repair any vehicle, and the

vehicle owners are to suffer a lot during their course of journey if the vehicle is

cracked in the midway. The establishment of well-equipped workshops will

cater to the requirements of government and private vehicles primarily and also

the trucks, which run through the hilly route.

2. Electronics & Information Technology

Demand of electronics goods is fast growing in Assam Hills along with

the rest of the county. Use of TV, Radio, Watch/Clock, Computer, CD, DVD,

etc. is becoming common in urban and even many rural households. Though few

Electronic based servicing and repairing centre has been established in the main

centres of Assam Hills; these are lacking trained personnel and not well

equipped with modern appliances. There is great scope of electronic based

servicing units to meet the growing need in Assam Hills. The State Government

also encourages to setting up of electronic-based industries and complexes in the

sphere of information technology in private sector and/or joint sector. With the

growth of Compute & Information Technology, now computer assembling, data

processing, Computer servicing and computer software are the common

services, which provide the scope of developing electronic based units.

3. Electrical based industries

The existing electrical industries in the Hills region are Electrical wire

netting both domestic and office, battery charging/assembly. Repairing center

for domestic electrical appliances, dry cleaning etc. The electrical goods are

used by those houses, which have electricity connection both for commercial

and domestic use. Electrical wire netting is now an important service, which has

the facility of registering as SSI unit under DICC. The existing electrical based

units are not sufficient to meet the growing demand of electrical goods. There is

222

immense scope of electrical servicing units in Assam Hills.

6.3.8. MISCELLANEOUS INDUSTRIES

1. Printing & Stationery units

In Assam Hills some SSI units can be setup for manufacturing printing

and stationery goods, which can engage many entrepreneurs by providing

employment opportunities to them. These units can produce Black board, duster,

brass utensils, decorative paper. Exercise book and register, File cover, file

board, Book binding, paper envelop, paper bag, paper cup plate etc.

2. Exercise book & Register and book binding units

At present there are 1.2 lakh (appx.) students on the role in different

educational institutions of the two hill districts. Besides, various departments

and offices also require a large quantity of stationery items. Most of the

requirements of their exercise books and other stationery are obtained from

outside supplies. More over. Bookbinding and Envelop making units are also

not available. Considering the present demand of stationery items there is ample

scope for setting up some units to manufacture exercise books, cashbooks,

ledger, register books etc. Besides, manufacturing of file cover, envelope

making, book binding also provide scope for self-employment to many young

entrepreneurs of Assam Hills.

3. Wooden Stationery, Pencil, Duster manufacturing units

In Assam Hills, there is no unit engaged in the manufacture of Drawing

boards, Pencils, Roller & Scale, Duster and wooden stationery articles. The

demand for these items emanates mostly from technical & Educational

institutions. Public Works Department (PWD) and Architects engaged in both

public and private sector. The entrepreneurs Assam Hills can establish these

units to meet the growing demand of such items.

223

4. Bio-technology Based Units

There exist a high potential for the setting up of biotechnology-based

industries in Assam Hills. This industry is essentially knowledge-based and can

function with minimum resources and limited transportation infrastructure.

5. Tissue Culture and Orchid Units

Assam Hills is well known for various species of orchids. Orchid

cultivation can be taken up viably as an industry in the Hilly region. Orchids

have a high value realisation in the international markets. The orchid lovers may

be gainer through large-scale commercial exploitation of varieties of orchids in a

systematic and scientific manner through tissue culture. Similarly Flori-culture

also has the scope to develop whereby many people will be benefited.

6.4. POTENTIALITY OF PLANTA TIONINDUSTR Y

Assam Hills has good prospects for the development of industries based

on plantation crops such as Tea, Rubber, Coffee and Citronella. Tea plantation

and processing have occupied an important place in the economy of Assam

Hills. There are 349 small and 8 medium tea gardens in Assam Hills, of these

143 small and all 8 medium tea gardens are located in Karbi Anglong; while 206

small gardens are in N.C. Hills. Tea industry offers scope for the development of

ancillary and auxiliary industries. Based on the requirement of the tea industry,

cane and bamboo basket-making unit, polythene bag-making unit, umbrella-

making unit etc. can be considered.

Assam Hills is proved suitable for rubber cultivation. In view of the

availability of raw materials; rubber-based industries have good prospects in

Assam Hills. The plastic sector has a great potentiality for development of

small-scale industries.

The area under coffee plantation in Assam Hills was 773 hectares and

224

production coffee was 19 thousand kg with the yield rate of 24.6 kg per hectare

in 2001. Thus the prospect of coffee plantation is also bright in the hilly region.

In Assam Hills, Citronella plantation has been gaining popularity among

the local farmers. Large areas that have been abandoned after one or two Jhum

cycle are found to be suitable for citronella plantation. The young entrepreneurs

can come forward to initiate plantation of citronella grasses in their farms for

extraction of citronella oil which has great demand in and out side districts.

6.5. POTENTIALITY OF TOURISM INDUSTR Y

Assam Hills has vast potential for tourism. This hills region is

fascinating which can attract the domestic and foreign tourists. Assam Hills has

unique cultural and ethnic diversity. The rivers, forests and mountains provide

scope for adventure and eco-

tourism. Assam Hills should

be made a tourist hot-spot

like Kashmir has become.

The development of tourism

will lead to improvement in I

the transport andl

communication system,

growth of hotel industries etc. Jatinga bird mystery

Tourism can generate several social and economic benefits. The Hills

region may be considered for promoting pilgrim tourism, cultural and historical

tourism, recreation tourism and wildlife tourism, adventure tourism to attract

tourist to this part of the state. There are many tourists spot in Assam Hills. The

world famous Jatinga bird's mystery of "committing suicide" at Haflong is an

important attraction of the only Hill station. Besides, there are many tourist spots

225

in both the hill districts

including picturesque

town of Haflong,

historical monument of

Dimasa Kachari king of

Maibang. NEEPCO hydel

power project site of

Umrangso, Panimoor, mmm^mmmm..

Garampani, etc; while Koka Falls at Panimur

among the tourist spots of Karbi Anglong Koka falls at Panimur, Tourists

centers of Amreng,

Khanduli, Umwang,

Kohora Resort, Trek­

king Expeditions to

Singhason, Wild venture

at Silveta, Marat, Longri

Sanctuary etc are

important. The develo-

Bridle path inside Kohora (Kaziranga ) pment of tourism will

contribute to the development of handloom, handicraft and also the sericulture

sector.

6.6. CONCLUSION

Given the generous resource endowment and the presence of few

(medium size) public and private sector cement industries, there is good

prospect for growth of Small industrial sector in Assam Hills. The process of

liberalization and new industrial policies incorporating an attractive package of

incentives and other benefits, industrial development has been encouraged for

226

economic upliftment in the Hilly and backward regions of the State. It is

expected that a good number of small scale industries may be developed in the

near future provided suitable investment friendly climate is created in this hilly

region. This requires an active support from both the Central and State

Government and the participation of the local people. However, the Government

of Assam should take appropriate step with proper support of both the

Autonomous Councils for promoting Industrialization process. The State must

provide the infrastructure, if not, then provide counter-guarantees and other

necessary incentives to private investors in creating the infrastructure, without

putting any burden on the Autonomous Councils. The State Government should

also take active steps to promote an investment friendly environment for

attracting private investors, both domestic and foreign, so as to develop different

small, medium and large scale industries based on the industrial potentials.

227