TRIPURA - IBEF · Tripura acts as a gateway between Northeast India and ... GSM cellular...

April 2010

TRIPURA

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Investment climate of a state

Resources/Inputs

Incentives to industry Physical and social infrastructure

Regulatory framework

• Skilled and cost-effective labour• Labour market flexibility• Labour relations• Availability of raw materials and natural

resources

• Tax incentives and exemptions• Investment subsidies and other incentives• Availability of finance at cost-effective terms• Incentives for foreign direct investment (FDI)• Profitability of the industry

• Procedures for entry and exit of firms• Industrial regulation, labour regulation, other

government regulations• Certainty about rules and regulations• Security, law and order situation

• Condition of physical infrastructure such as power, water, roads, etc.

• Information infrastructure such as telecom, IT, etc.

• Social infrastructure such as educational and medical facilities

Investment climate of a state is determined by a mix of factors

TRIPURA April 2010

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Advantage Tripura

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Tripura

TRIPURA April 2010

Contents

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Tripura – State profile• Covering an area of 10,492 sq km, Tripura is a landlocked

state in the Northeast. The state shares an 856 km long international border with Bangladesh, accounting for about 84 per cent of the total border of the state. To the East, are the Indian states of Assam and Mizoram.

• Tripura has four administrative districts namely North Tripura, West Tripura, South Tripura and Dhalai. Agartala is the state capital and the state’s largest city.

• The other key towns in the state are Kailashahar, Udaipur, Khumulwng, Kamalpur, Ambassa, Khowai and Sabroom.

• Tripura has the second-highest population density among the North-eastern states, next only to Assam; about 83 per cent of the state’s population lives in rural areas.

• The main rivers flowing through Tripura are Gomati, Manu, Khowai, Feni, Doloi, Muhuri and Haora.

• Bengali and Kokborok/Tripuri are the official languages ofthe state. The medium of instruction in schools is eitherBengali or English.

Source: Tripura official website

ADVANTAGE TRIPURA Tripura April 2010

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Improving connectivity and infrastructure

International trade opportunitiesTripura acts as a gateway between Northeast India andBangladesh. This offers immense potential for international trade.

Advantage Tripura … (1/2)

Endowed with natural resourcesTripura is rich in natural resources like natural oil andgas, rubber, tea and medicinal plants. It is also known for itsvibrant food processing, bamboo and sericulture industry.

Tripura is connected with the rest of Northeast India byNational Highway (NH)-44. Improved rail and air connectivityand establishment of trade routes have further facilitated thetrade.

Tripura April 2010ADVANTAGE TRIPURA

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Favourable tourist destinationWith its pleasant climate and scenic landscape, Tripura is afavoured tourist destination. The state offers visitors avariety of choices such as temples, rivers and rock carvings.

Availability of skilled workforceThe literacy rate of Tripura at 73.2 per cent is higher thanthe national rate. A substantial portion of the population inthe age group of 15 to 25, in major towns, is computerliterate.

Untapped sectorsThe state has many unexplored sectors such as organicspices, bio-fuel and eco-tourism.

Tripura April 2010

Advantage Tripura … (2/2)

ADVANTAGE TRIPURA

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Tripura in figures … (1/2)

Parameter Tripura All-states Source

Economy

GSDP as a percentage of all states’ GSDP 0.3 100.0 CMIE, 2006-07, current prices

Average GSDP growth rate (%) 12.9 12.1 CMIE, 1999-2000 to 2006-07, current prices

Per capita GSDP (US$) 713.3 815.1 CMIE, 2006-07

Physical infrastructure

Installed power capacity (MW) 148.4 98,996.4 Central Electricity Authority,as of March 2009

GSM cellular subscribers (No) 4,259,022^ 367,328,179 Cellular Operators Association of India, as of November 2009

Broadband subscribers (No) 14,202^ 4,981,976 As of October 2008

National highway length (km) 400 70,548 Ministry of Road Transport & Highways, 2007-08

Airports (No) 1 133 Industry sources


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Tripura in figures … (2/2)

Parameter Tripura All-states Source

Social indicators

Literacy rate (%) 73.2 64.8 Census of India, 2001

Birth rate (per 1,000 population) 17.1 23.3 Central Bureau of Health Intelligence, 2007

Ease of doing business

FDI inflows (US$ billion) 0.06* 102.1 Department of Industrial Policy and Promotion, April 2000 to October 2009

Outstanding investments (US$ billion) 2.3 1,709.7 CMIE, as of December 2008

^Combined figures for the Northeast comprising Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim.*FDI inflows for the Reserve Bank of India-designated, Guwahati-region, which includes Assam, ArunachalPradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.


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Key industries with policy thrust and factor advantages

Medium HighLow

Medium

High

Industry attractiveness matrix

Food processing

Tea

*Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital

Rubber

Medicinal plants

Handloom, handicrafts and sericulture

Natural gas

IT

Bamboo

Tripura April 2010

Pol

icy

thru

st

Factor advantage

ADVANTAGE TRIPURA

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Advantage Tripura






TRIPURA April 2010

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Socio-economic snapshot of Tripura

Parameters Tripura

Capital Agartala

Geographical area (sq km) 10,492

Administrative districts (No) 4

Population density (persons per sq km) 305

Total population (million)* 3.2

Male population (million) 1.6

Female population (million) 1.6

Population growth rate 1991-2001 (%) 16.0

Sex ratio (females per 1,000 males)* 948

Literacy rate (%)* 73.2

Male (%) 81.0

Female (%) 64.9

Sources: Economic Survey of Tripura 2007-08; Tripura District at a Glance, 2009; Directorate of Economics and Statistics*Census 2001

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

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Tripura’s GSDP

• At current prices, the total Gross State Domestic Product (GSDP) of Tripura was about US$ 2.4 billion in 2006-07.

• The state’s GDP grew at a CAGR of 12.9 per cent between 1999-2000 and 2007-08.

Tripura’s GSDP(US$ billion)

Source: CMIE

1.0

1.1

1.3

1.5

1.7

1.8

2.1

2.4

0.0 0.5 1.0 1.5 2.0 2.5 3.0

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

CAGR12.9%


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Tripura’s NSDP

• The Net State Domestic Product (NSDP) of Tripura was about US$ 2.3 billion in 2006-07.

• Tripura’s NSDP grew at a CAGR of 13.0 per cent between 1999-2000 and 2006-07.

Tripura’s NSDP(US$ billion)

Source: CMIE

1.0

1.1

1.2

1.4

1.6

1.7

1.9

2.3

0.0 0.5 1.0 1.5 2.0 2.5

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

CAGR13.0%


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The tertiary sector has an increasing share in Tripura’s economy

• In 2006-07, the tertiary sector contributed 64.9 per cent to the state’s GSDP, followed by the primary sector (29.9 per cent).

• The secondary sector’s share in GSDP was 5.2 per cent in 2006-07 vis-à-vis 2.4 per cent in 1999-2000; the growth being driven by registered and un-registered manufacturing.

• The secondary sector registered the highest growth rate of 22.6 per cent between 1999-2000 and 2006-07. This was followed by the mining and quarrying that registered a growth rate of 15.3 per cent between 1999-2000 and 2006-07.

Percentage distribution of GSDP

Source: CMIE


Tripura April 2010

35.3 29.9

2.45.2

62.2 64.9

0

20

40

60

80

100

1999-00 2006-07

Primary Sector Secondary Sector

Tertiary Sector

7.4%

22.6%

10.6%

CAGR

15

Per capita GSDP• In 2006-07, the state’s per capita was US$

713.3.

• Per capita GSDP increased at a CAGR of 11.7 per cent between 1999-2000 and 2006-07.

Source :CMIE

Per capita GSDP

(US$

) 328.0 355.8413.6 452.3

522.5 548.1615.4

713.3

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

1999-2000

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07


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Socio-economic profiles of key cities

• Agartala, the state capital, lies on the Haora river and is located 2 km from Bangladesh. A majority of the city’s population is employed in the State and Central Government, and other government-owned enterprises.

• Udaipur town is the headquarters of the South-Tripura district. The town is famous for the Tripura Sundari temple. There are many artificial lakes in the town viz., Dhani Sagar, Mahadev Dighi, JaganathDighi and Amar Sagar.

• Khumulwng is the headquarter and the largest town of the Tripura Tribal Areas Autonomous District Council. The town is well known for its cultural beauty and many churches.

• Kamalpur is the largest sub-divisional town in the Dhalai district. This northern-most town of the district is named after Kamaleswari Mandir, which is the major attraction, here.

• Sabroom, located on the banks of the river Feni, is the last settlement on Indian side in the South-Tripura district that shares the international border with Bangladesh.


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Key industries in Tripura

Key industries in Tripura

• Natural gas• Food processing• Rubber• Tea• Bamboo• Handloom and handicrafts • Sericulture• Tourism• IT• Medicinal plants

• The resources, policy incentives, infrastructure and climate in the state support investments in sectors such as natural gas, food processing, rubber, tea, bamboo, handloom and handicrafts, sericulture, tourism, IT and medicinal plants.

• Natural gas deposits are among the most important reserves of Tripura’s natural resource-base. Natural gas is available at the Baramura hills and in Rokhiawhere natural gas-based plants have been set up.

• The other potential sectors of the state are organic spices, medicinal plants and bio-fuel. A state bio-fuel mission has been proposed to be set up under the Department of Forest.

• Favourable agro-climatic condition, low use of chemicals and availability of a variety of spices offer opportunities for development and procurement of the spices sector.

Source: Tripura Industries Development Corporation


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Rice is the principal crop of the state

Crop Annual production (‘ooo tonnes)

Rice 549Potato 80.9Natural rubber 18.5Groundnut 1.0

• Agriculture and allied activities are the mainstay of the people of Tripura. They provide employment to about 64 per cent of the population.

• With about 62 per cent of the net-sown area under food-crop cultivation, food crop predominates over cash crop cultivation in Tripura.

• Rice, potato, natural rubber and groundnut are the major crops of the state. As of 2009, Tripura, was the second-largest rubber producer in the country, after Kerala, with 41,000 hectares of land under rubber cultivation.

• The state has significant bio-diversity. There are 266 species of medicinal plants in the state. A variety of horticultural and/or plantation crops are produced in Tripura. They include pineapple, oranges, cashewnut, jackfruit, coconut,tea and rubber.

Source: CMIE

Source: Maps of India


Tripura April 2010

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3%

41%

33%

21%

2%

Manufacturing

Mining

Electricity

Services

Irrigation

• According to the Reserve Bank of India, FDI inflows from April 2000 to October 2009 amounted to US$ 55.03 million*.

• As of December 2008, outstanding investments in the state were US$ 2.3 billion.

• Mining and electricity sectors accounted for about 74 per cent of the state’s total outstanding investments.

Investments and FDI inflows

Breakup of investments by sector

*FDI inflows for RBI’s Guwahati-region, which includes Assam,Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.

Source: CMIE, as of December 2008


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Advantage Tripura






TRIPURA April 2010

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Road network

• Tripura has a total road length of 15,539 km covering both, metalled and non-metalled surfaces.

• The major towns in the state are connected by National Highways that run through the state for about 400 km. NH-44 links Tripura with the rest of the Northeast.

• The Tripura Road Transport Corporation (TRTC) provides state road transport services. TRTC operates 81 buses on 32 routes.

Road type Road length

(km)

Total road length 15,539

National Highways 400

State Highways 689

Major district roads 90

Other district roads 1,218

Rural roads 13,142

Source: Tripura District at a Glance, 2009, Directorate of Economics and Statistics

Source: Maps of India

INFRASTRUCTURE STATUS

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Airports and railways

Domestic Airport

• Tripura has a domestic airport at Agartala, known as the Singerbhil Airport. The airport is administered by the Airports Authority of India and located 12 km southeast of Agartala city.

• The Singerbhil airport is the second-biggest and busiest airport in the Northeast. Domestic airlines operating from this airport are Jet Airways, Indian and Air India, Kingfisher, Paramount Airways and Indigo Airlines with regular flights to destinations such as Guwahati, Kolkata, Silchar, Imphal, Delhi and Chennai.

• The major railway stations are located at Agartala, Dharmanagar and Kumarghat. Railway station

Dharmanagar

Kumarghat

• A 119 km railway line is being constructed between Kumarghat and Agartala at a cost of US$ 191.3 million.

• A 14 km metre-gauge railway line has been proposed between Akhaura (Bangladesh) and Agartala(Tripura). In addition, there is a proposed railway-link to be developed between Agartala and Sabroom, covering 110 km and expected to be complete by 2012.


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Power

Installed power capacity(MW)

Source: Central Electricity Authority

• As of March 2009, Tripura had a total installed power generation capacity of 148.4 MW, which comprised 132.4 MW of thermal energy and 16 MW of renewable energy.

• Incorporated in 2004, the Tripura State Electricity Corporation Limited is responsible for generation, transmission and distribution of power in the state.

• There are two ongoing power projects in Tripura: a 104 MW gas-based power project at Monarchak, which is being executed by the North Eastern Electric Power Corporation (NEEPCO) and is expected to be complete by 2011; and a 750 MW gas-based power project at Palatana, being set up by ONGC-Tripura Power Company (OTPC) Private Limited.

85.4

127.4 127.4 128.4

149.5 148.4 148.4 148.4

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0


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Telecom

• As of March 2009, the state had 88 telephone exchanges with 84,207 working connections.

• The state had 32,361 wireless local loop (WLL) connections with 38 WLL exchanges as of March 2009.

Telecom infrastructure

Post offices: 716

Telephone exchanges: 88

Telephone connections: 84,207

Telecom operators in Tripura

• Bharti Airtel

• Aircel Limited

• Reliance Communications

• BSNL

• Vodafone Essar

• Tata Indicom

• IDEA Cellular

Source: Tripura District at a Glance, 2009, Directorate of Economics and Statistics

Source: Cellular Operators Association of India


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• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), one project costing US$ 17 million has been sanctioned for Agartala. The project is for water supply in the north zone of the city.

• The Asian Development Bank (ADB) has initiated a number of projects in Tripura in the areas of water supply, sewerage and sanitation at a cost of US$ 87 billion. Programmed activities for solid-waste management system in Agartala are expected to be complete by 2013. Programmed activities for Agartala in the water supply, sewerage and sanitation sectors are scheduled for completion by 2014.

• Under a Central Government project, 1,458 households would be connected to the sewerage systems by March 2010.

Urban infrastructure


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Literacy rates (%)

Literacy rate 73.2

Male literacy 81.0

Female literacy 64.9

• According to the Census 2001, the literacy rate of the state was 73.2 per cent. The male literacy rate was 81 per cent and the female literacy rate was 64.9 per cent.

• As of March 2009 , the state had 2,378 primary schools, 1,139 middle schools, 459 high schools and 311 higher-secondary schools.

Tripura’s education statistics

Number of schools Primary: 2,378Middle: 1,139High: 459Higher secondary: 311

Drop-out rate (%) Primary stage: 6.8Elementary stage: 12.6High school stage: 53.3

Number of teachers Primary schools: 7,800Middle schools: 8,687High schools: 8,952Higher secondary schools: 9,546

Education sector … (1/2)

Source: Census of India, 2001

Source: Tripura District at a Glance, 2009, Directorate of Economics and Statistics, as of 2009


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Educational infrastructure

• Universities: 3• General colleges: 15• Engineering colleges: 2• Medical colleges: 2• Agricultural college: 1• Law college: 1• Industrial training institutes (ITI): 7• Polytechnic institutes: 2

Premier institutions in Tripura

• Maharaja Bir Bikram (MBB) College• National Institute of Technology• Tripura Institute of Technology• Tripura University

• Tripura has three universities, 15 general colleges, two engineering colleges, two medical colleges, an agricultural college, a law college, seven industrial training institutes and two polytechnic institutes.

• The State Government is taking several initiatives to encourage setting up of various educational complexes.

Source: Tripura District at a Glance, 2009, Directorate of Economics and Statistics, as of 2009


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Education sector … (2/2)

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Health infrastructure

Health infrastructure

• Hospitals: 19• Primary health centres: 88• Dispensaries/sub-centres: 707• Hospital beds: 2,875• Blood banks: 6• Allopathic doctors: 727• Homeopathic doctors: 59• Ayurvedic doctors: 54

Source: Tripura District at a Glance, 2009, Directorate of Economics and Statistics, as of 2008-09

• As of March 2009, Tripura had 19 hospitals, 88 primary health centres and 707 sub-centres.

• The state has an online booking system called “Swasthya Sanchar“ through which health services offered at the government hospitals can be booked in advance through Internet. The availability status along with different management information system (MIS) reports is also available through this system.

Health indicators

Birth rate (per thousand population) 17.1

Death rate (per thousand persons) 6.5

Infant mortality rate (per thousand live births)

39

Sources: Ministry of Health and Family Welfare; Economic Survey, 2007-08 and Tripura District at a Glance, 2009, Directorate of Economics and Statistics, as of 2007


Tripura April 2010

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Cultural infrastructure

• Tripura has a cultural heritage of music, fine arts, handicrafts and dance. Music is an integral part of the tribal people of Tripura. There are 19 tribes in Tripura that contribute to the cultural variety of the state.

• Some of their indigenous instruments are the sarinda (string instrument that looks like a peacock), chongpreng (a particular type of plucked string instrument) and sumui (a kind of flute). Important dance forms in the state are gariajhum, maimita, masak sumani, lebangboomani, hozagiri, bizu, hai-hak, wangala and cheraw.

• Football and cricket are two popular sports of Tripura. Agartala has its own club football championships every year where many local clubs compete in a league and knockout format. The Umakanta Academy Ground in Agartala is an important stadium in the state.

• Fairs and festivals are celebrated during the year relate to harvest seasons and are an integral part of the state’s culture. Some of the festivals are Ashokastami festival, Garia and Gajan festiva, Orange and tourism festival, Kharchi festival, Rasha festival and Pous Sankranti mela.


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Industrial infrastructure … (1/2)

• The Bodhjungnagar Industrial Complex has come up adjacent to Agartala (about 12 km from Agartala) on about 550 acres of land with all infrastructure facilities such as road, power, water, piped natural gas, etc. The land has been allotted to industrial units and almost 80 per cent of the units have started functioning.

• Two integrated infrastructure development centres are being established in Tripura for which the site selection process is underway. The centres are coming up in the districts of South Tripura and Dhalai.

Name of the industrial area Location

Arundhutinagar Industrial Estate

Arundhutinagar, Tripura West

Badarghat Industrial Estate Badarghat, Tripura West

Dukli Industrial Estate Dukli, Tripura West

Bodhjungnagar Growth Centre Bodhjungnagar, Tripura West

Bodhjungnagar Export Promotion Industrial Park Bodhjungnagar, Tripura West

Food Processing Technology Park Bodhjungnagar, Tripura West

Kumarghat Industrial Estate Kumarghat, Tripura North

Dharmanagar Industrial Estate Dharmanagar, Tripura North

Dewanpassa Integrated Infrastructure Development Centre

Dewanpassa, Tripura North

Dhajnagar Industrial Estate Dhajnagar, Tripura South

Source: Department of Industries and Commerce, Government of Tripura


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Industrial parks being developed

Name Project cost (US$ million)

Land (acres)

Facilities

Rubber park 1.5 50Internal and external road network, developed plot and shed, power and water supply, telecom, boundary wall, testing lab, sewage and drainage, security guard, etc.

Food park 1.5 30Cold storage (1,500 million tonnes), warehouse, quality control laboratory, sorting, grading and packaging unit, bottle manufacturing unit, test house.

Export promotion park 2.2 126.1Administrative block, internal and external road network, developed plot and shed, power and water supply, telecom, boundary wall, sewage and drainage, security guard, etc.

Bamboo park 8.7 - Common facilities for bamboo handicrafts units.

Source: Department of Industries and Commerce, Government of Tripura


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Major investments in the infrastructure sector

Infrastructure type Investments (US$ million)

Crude oil and natural gas 951.3

Electricity generation 747.2

Airport 3.9

• As of December 2008, over US$ 1.7 billion has been invested in ramping up Tripura’s infrastructure.

• About 56 per cent of the investments have been made in crude oil and natural gas followed by 44 per cent in electricity generation.

• Air transport is the other key infrastructure sector attracting investment.

Source: CMIE, as of December 2008


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Advantage Tripura






TRIPURA April 2010

Contents

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Tripura Industrial Investment Promotion Policy, 2007

Aim: To make Tripura a preferred destination for industrial and trade activities

Key focus areas:

• To facilitate investment targeted in the existing industrial and trade locations on immediate basis and in those locations likely to develop in the short-term; and planning for potential locations in the long-term. Integration of basic and supportive infrastructure together with industry and trade-specific infrastructure.

• To ensure sustainable economic growth based on locally available opportunities and natural resources, with focus on viability and maximum value addition. Also, to capitalise on promising locations for boosting trade through the state.

• To promote industrial and business ventures through incentives and supportive financial measures. Offsetting limitations faced by investors and capacity-building through entrepreneurial and technical-skills training and promoting self-employment.

• To build investor convenience resulting from appropriate restructuring within the Industries and Commerce Department, in line with changing demands of the industries.

• To broad-base support systems, primarily through public sector undertakings and societies under the Industries and Commerce Department and other designated agencies.

Sector-specific policies … (1/9)

STATE POLICIES AND INCENTIVES

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Tripura Industrial Investment Promotion Policy, 2007

Incentives and concessions:

• Capital investment subsidy of 30 per cent and additional subsidy at 2.5 per cent on fixed capital investment, for land and civil works (subject to a ceiling of US$ 0.1 million per unit) for enterprises belonging to women and individuals of the scheduled castes and scheduled tribes.

• Reimbursement of commodity tax for five years, subject to a ceiling of US$ 0.1 million.

• Procurement preference of 15 per cent on purchases by the government.

• Interest subsidy of 3 per cent on term loans.

• Reimbursement of power charges for a period of five years on an annual tapering basis, with a maximum of US$ 0.03 million per enterprise.

• 10 per cent state transport subsidy for a period of five years in line with central transport subsidy.


Tripura April 2010


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IT Policy of Tripura, 2000

Aim: To facilitate the growth of IT in the state.

Key thrust areas:

• Development of human resource for IT by adopting IT education in educational institutions of Tripura.

• Promotion of electronic governance through the setting up of information facilitation counters (IFCs) and hosting of websites for efficient and effective delivery of government services, improved revenue collections, better financial management, greater dissemination of information on government functions.

• Positioning the state as an attractive location for investment by domestic and international companies by providing attractive incentive packages, with an objective to create employment in the state through IT industries.


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IT Policy of Tripura, 2000

Aim: To facilitate the growth of IT in the state.

Key incentives:

• The IT/software industry will be exempt from the provisions of certain acts/regulations, such as Pollution Control Act, Factories Act and Contract Labour (Regulation) Act to facilitate easy setting up of software units.

• IT Parks will be created by the Department of Industries and Commerce (DoIC), which will have all basic infrastructural facilities including uninterrupted power supply. If an IT company wants to set up its own captive-power generation unit, no permission would be required from any agency for diesel generator sets up to 50 kilo volt ampere (KVA).

• The land may be allotted in the designated DoIC areas at concessional rates for IT units, subject to a minimum employment guarantee of 20 persons from the state.

• The Government of Tripura will give the same status to the sector of IT-enabled services as is given to the software development sector.


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Tripura State Bamboo Policy, 2001

Objectives: To realise the economic, social and environmental potential of the bamboo resource of Tripura, develop it into one of major economic sectors of the state, and provide employment and income generating activities for the tribals and ruralpoor.

Key features:

• Development and implementation of a sustainable community-based production model with benefits for forest conservation.

• Development and implementation of an economic development program using bamboo for spurring industrial development.

• Enhancing employment and income generating opportunities for the tribal population and rural-poor, using bamboo as the prime resource.

• Conserving the bio-diversity of resource base.


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Tripura State Bamboo Policy, 2001

Objectives:To realise the economic, social and environmental potential of the bamboo resource of Tripura, develop it into one of major economic sectors of the state, and provide employment and income generating activities for the tribals and rural poor.

Key features:

• Establishing bamboo industrial products as an economically successful new industrial sector. This includes developing small scale industries (SSI) and also medium-scale operations based on bamboo viz., mat boards, laminates, ply, flooring, shoot-processing and others by the International Network for Bamboo and Rattan (INBAR)-Tripura Bamboo Mission. Smaller industries would be promoted at the community level for production of chopsticks, incense sticks and baskets.

• Developing the necessary market-mechanism with support for promoting and marketing finished products.

• Popularising bamboo as a cost-effective and earthquake-resistant building material for the housing sector in the state, which lies in one of the highly active seismic zones of the country.


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Tripura Medicinal Plant Policy

Objectives: To develop the medicinal plant sector such that the state becomes a leading grower of all medicinal plants, whichoccur under the climatic and natural factors of the state.

Key features:

• Survey and preparation of inventory of resources of medicinal plants in the state.

• Assistance and support to private sector by providing incentive packages and identifying market opportunities. Training on cultivation aspects such as harvesting, grading and storage shall be an important aspect of the support.

• Research support for large scale production of quality planting-material through biotechnology interventions.

• Marketing assistance: The marketing strategy shall involve close interaction with pharmaceutical industry to develop specific market linkages for the products and setting up infrastructure facilities such as quality testing laboratory, collection centres with facilities for drying, grading, packaging and storage.


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North East Industrial and Investment Promotion Policy (NEIIPP), 2007

Aim: To promote the Northeast as an attractive investment destination by providing concessions and incentives.

Key features:• Industries under this policy are eligible for incentives for a period of 10 years from the date of commencement of

commercial production.

• All new units as well as existing units that undergo substantial expansion (minimum 25 per cent increase in fixed capital) and start production before 2017 would qualify for incentives.

• Incentives would be available for all existing industrial units and upcoming units anywhere in the Northeast .

• A high level monitoring committee/advisory committee would oversee the implementation of the NEIIPP.

• NEIIPP would not be applicable to peripheral activities such as preservation while storage, cleaning, packing, re-packing, labelling or re-labelling, sorting, etc.

• The North East Industrial Development Finance Corporation (NeDFI) will act as the nodal agency for disbursal of subsidies.

• NEIIP, 2007, replaced the North East Industrial Policy, 1997.

Continued…


Tripura April 2010


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NEIIPP, 2007

Incentives and concessions:

• 100 per cent excise duty exemption on finished product made in the Northeast.

• 100 per cent income tax exemption for industrial units.

• Capital investment subsidy increased from 15 to 30 per cent for plant and machinery up to US$ 360,000 per unit. For units above US$ 360,000 of and up to US$ 7.5 million, an empowered committee approves. For units above US$ 7.5 million, the Union Cabinet approves.

• Interest subsidy to be given at the rate of 3 per cent on working capital.

• 100 per cent reimbursement of insurance premium.


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Advantage Tripura






TRIPURA April 2010

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Natural gas

Food processing• The agro-climatic conditions are favourable for growing various fruit and horticultural crops. In 2008-

09, the state produced pineapple (1,06,406 tonnes per annum [TPA]), jackfruit (256,280 TPA), orange (18,150 TPA), cashew (1,542 TPA) and coconut (19.8 million nuts per annum). Tripura’s pineapples and oranges are known for their unique flavour and organic nature of produce.

• In 2008-09, the major spices produced in the state were ginger (182,000 Million Tonnes (MT), turmeric (267,000 MT), chillies (75,000 MT) and black pepper (10,000 MT).

• A modern food park is being set up near Agartala to give a fillip to this sector. An agri-export zone for pineapple is also being developed. The state also has potential in the meat-processing sector.

• Tripura has vast reserve of natural gas. The gas is available in non-associate form, with high methane content of up to 97 per cent. Presently, 1.5 million standard cubic meters per day (MMSCMD) of gas is available, which is likely to go up at the level of 6.0 MMSCMD by 2012-13. Concessional gas-pricing and vast reserves offer potential for setting up industries in this sector.

• Natural gas is available in the Baramura hills and in Rokhia. Natural gas-based thermal plants have been set up in both the places.

BUSINESS OPPORTUNITIES

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Natural rubber

• Tripura is the second largest rubber producer in the country, after Kerala. The total area under plantation is 35,760 hectares. As of 2009, rubber production in the state was18,455 TPA.

• Natural rubber-based activities have been declared as the thrust sector because of its special significance to the state. With a total plantation potential for 1 million hectares, there is significant potential for setting up of rubber-based industries in the state.

• The State Government is setting up a rubber park with technical support of the Rubber Board, Government of India.

• A rubber wood factory has been set up in September 2009 in the Anandanagar area, which is a first in the Northeast and the second-largest such unit in the country.

• India’s second-biggest heat-resistant, rubber-thread manufacturing plant was commissioned in Tripura in 2006. With an installed capacity of 5,000 TPA, the plant employs over 80 per cent of its workforce from the local population. The project cost was US$ 17 million.


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Tea

• The agro-climatic conditions in Tripura are suitable for tea plantation. Tripura is categorised as atraditional tea-growing state with about 60 tea estates and 4,000 small tea-growers. Together, theyproduce about 7.8 million kg of tea every year. This makes Tripura the fifth-largest tea producingstate, after Assam,West Bengal,Tamil Nadu and Kerala.

• There is a considerable scope to increase the area under tea plantation as well as productivity forTripura to become a leading tea producer like Assam.

Bamboo

• Tripura is endowed with rich and diverse bamboo-resources. About 10-15 species of bamboo are grown across Tripura.

• Bamboo is commercially used for crafts, mats, incense sticks, furniture, home décor, baskets and bags. There is potential to develop more industrial products based on bamboo.

• Efforts are being made to promote bamboo as a substitute to timber. The State Government has established a Tripura Bamboo Mission as an initiative aimed at the integrated development of the bamboo sector in Tripura.


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Handloom, handicrafts and sericulture

• Tripura handloom represents a unique harmonious blend of three traditions- tribal, bengali and manipuriweaving.

• Tripura is known for its cane and bamboo handicrafts. Over 10,000 artisans are engaged in the production of over 200 handicrafts products in the state.

• Sericulture is also an important occupation in the state. Around 4,500 beneficiaries are directly involved in this occupation.

• The state produces a wide variety of products such as silk and cotton saris, lungis, shirts, jute carpets, bedspreads and furnishing fabrics.

Medicinal plants• Tripura has at least 266 medicinal plants with 68 species of trees, 71 herbs, 39 shrub and 88 climbers.

• The State Government has constituted a Medicinal Plant Board of Tripura. A Medicinal Plant Policy has been declared by the State Government.

• In Tripura, the medicinal plants are cultivated through Joint Forest Management committees in the nine forest territorial divisions with funding assistance from the Medicinal Plants Board of Tripura.


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IT

• Educated and low-cost human resource available in the state making it attractive to the IT industry.

• Under the IT Policy, 2000, the State Government is taking initiatives to promote IT education in schools as well as e-governance.

• The Software Technology Parks of India (STPI) is setting up a software park in Agartala at a cost of US$ 1 million.

Tourism

• Tripura is an attractive tourist destination because of its rich flora and fauna. As of March 2009, 250,000 tourists visited the state.

• Places of interest in the state include Ujjayanta palace, Unakoti, Tripurasundari temple, Bhuvaneshwaritemple, Dumboor lake, Neermahal, Jampui hill, Devtamura rock carvings and Pilak.


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Major industrial projects being implemented

Name of the project Promoter Cost (US$ million)

Industry Project ownership

Kumarghat-Agartala Railway line

Northeast Frontier Railway 191.3 Railways Central Government

Medical College (Agartala) project

Government of Tripura 34.7 Other community services

State Government

Sub-transmission and distribution (Tripura) project

Government of Tripura 31.9 Power distribution

State Government

Source: projectstoday.com


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Key projects under planningName of the project Promoter Cost

(US$ million)Industry Project ownership

Tripura Power Project ONGC Tripura Power Limited

869.5 Gas-based power Central Government

Monarchak Power Project NEEPCO Limited 212.4 Gas-based power Central Government

Agartala-Subroom BG Railway Line Project

Northeast Frontier Railway

176.8 Railways Central Government

Source: projectstoday.com


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Advantage Tripura






TRIPURA April 2010

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Approvals and clearances required Department

Incorporation of the company Registrar of Companies

Allotment of land/shed A committee headed by General Manager – Tripura Industrial Development Corporation Limited (TIDC) will allot land/shed for the North Tripura, South Tripura and Dhalai districts. The Deputy Director of Industries will allot land/shed for the West Tripura district.

Power Tripura State Electricity Corporation Limited (TSECL)

Pollution clearance Tripura State Pollution Control Board and Chief Inspector of Factories and Boilers

Key approvals required

DOING BUSINESS IN TRIPURA

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Cost of doing business in Tripura

Cost parameter Cost estimate Source

Hotel costs (per room night) US$ 20 to US$ 100 Leading hotels in the state

Cost of residential space (per month rent for 2,000 sq ft house)

US$ 20 to US$ 500 Property developers

Power costEnergy charge: US$ 0.05/kWh/monthFixed charge: US$ 1/kWh/month

Tripura State Electricity Corporation Limited

Labour cost in Tripura

Industry Category of workers Minimum wages (US$/per day)

Agriculture - 1.8

Construction of roads and building Un-skilled 2.2Skilled 2.7

Transport Un-skilled 1.8Skilled 2.8

Industries Un-skilled 3.0Skilled 3.3

Source: Labour Directorate, Government of Tripura


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Key agencies

Key agency Functions

Tripura Industrial Development Corporation Ltd (TIDC)

• Incorporated 1974, TIDC performs the twin role of the state industrial development corporation and the state financial corporation. The corporation acts as a catalyst in the promotion and development of industries. It also provides financial assistance and infrastructure facilities in the state.

Tripura Tea Development Corporation (TTDA)

• TTDA was set up in 1980 for development of tea industry in the state. It is the nodal agency for growth of small farmers for tea plantation in the state.

Tripura Forest Development and Plantation Corporation Limited (TFDPC)

• Established in 1976, TFDPC is a public sector undertaking of the Government of Tripura.

• It aims to develop forests through plantations, improve the conditions of the economically weaker sections, especially, the tribal population dependent on forests for a living.

Tripura Tribal Areas Autonomous District Council (TTADC)

• TTADC was established in 1982 as an autonomous institution.• It aims to introduce internal autonomy and protect the social, economic and cultural

interests of the tribal population as a whole.

The Medicinal Plant Board of Tripura (MPBT)

• MPBT was established in 2001 to promote, conserve, cultivate, harvest, process and market medicinal plants in the state.

• It provides assistance in cultivation, storage, transportation, training, etc.


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Contact list

Key agency Contact information

Tripura Industrial Development Corporation Limited (TIDC)

Pandit Nehru Complex, Industries Building (3rd floor), P.O. Kunjaban, Agartala - 799006.Phone: 91-381-2226 617/2226 446

Tripura Tea Development Corporation (TTDA) New J.B. School, P.O. Abhoynagar, Agartala - 799005Phone:91-381-2224 128/2223173

Tripura Forest Development and Plantation Corporation Limited (TFDPC)

Abhoynagar, Agartala - 799005Phone: 91-381-2354 763

The Medicinal Plant Board of Tripura (MPBT) Forest Research Division, Van Gaveshana Sadan, Gandhigram, Agartala - 799012Phone: 91-381-2397 324


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Year INR equivalent of one US$

2000 46.602001 48.302002 48.042003 45.602004 43.702005 45.202006 45.002007 42.002008 40.202009 46.00

Exchange rates

Annexure

Average for the year


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TRIPURA April 2010

India Brand Equity Foundation (“IBEF”) engagedICRA Management Consulting Services Limited (IMaCS) to prepare this presentation and the same has been prepared by IMaCS in consultation with IBEF.

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