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The Northeast is awaiting its own industrial revolution, as a new policy to promote investment in the region is in the making. A NITI Aayog-led committee is framing a new policy — North East Industrial and Investment Promotion Policy (NEIIPP) — for the region. The current policy expires on March 31.
Assam, the largest among the ‘Eight Sisters’ — as the region is commonly referred to — is gearing up to set up industrial parks, which it believes would fuel investments in the state. Chandra Mohan Patowary, the state’s minister in charge of commerce & industries, transport and parliamentary affairs, said at the Business Standard North-East Round Table 2017 here on Tuesday, that as many as five industrial parks would come up in the state, which is also planning to focus on sugar and jute in the near term.
Impressed by Bangladesh’s trade exports, the state government is setting up a plastics park in Dibrugarh. The second is a bamboo park, which Patowary said, could replace the ailing plywood industry in the state. As many as 46 plywood mills used to operate in Assam. Most closed down as timber production fell, owing to environmental concerns; now, Patowary aims to replace this with bamboo. The Northeast accounts for 85 per cent of India’s total bamboo production. “First preference will be given to those who come first,” the minister said.
Impressed by Bangladesh’s trade exports, the state government is setting up a plastics park in Dibrugarh. The second is a bamboo park, which Patowary said, could replace the ailing plywood industry in the state. As many as 46 plywood mills used to operate in Assam. Most closed down as timber production fell, owing to environmental concerns; now, Patowary aims to replace this with bamboo. The Northeast accounts for 85 per cent of India’s total bamboo production. “First preference will be given to those who come first,” the minister said.
It is also banking on its staple tea industry which is a key economic driver. While tea from Assam accounts for 52 per cent of India’s annual production of nearly 1,200 million kg, small tea growers are mostly neglected in the trade. Now, Assam, which has over 200,000 small tea growers, would build a tea park where they will be able to route their produce to branded tea packers for better price realisation. Besides, it is setting up textile and pharmaceutical hubs.
However, the key thrust area will include sugar and jute, according to Patowary. “We have already held talks with ISMA (sugar industry association).’’ The revision of NEIIPP would hopefully usher in an industrial revolution, he added.
However, the key thrust area will include sugar and jute, according to Patowary. “We have already held talks with ISMA (sugar industry association).’’ The revision of NEIIPP would hopefully usher in an industrial revolution, he added.
Ravi Kapur, additional chief secretary of Assam, said the region was a virgin market and had the potential to become an export hub for the entire south-east Asian region. Other speakers at the round table said the region had its own challenges, of which connectivity was a major one. As a result of this, the region has been unable to attract big-ticket investments, officials pointed out.
The size of bank accounts was another concern. Pawan Bajaj, managing director and CEO of United Bank of India, said, “Most of the accounts are very small. It is not contributing to the bank’s growth….”
The size of bank accounts was another concern. Pawan Bajaj, managing director and CEO of United Bank of India, said, “Most of the accounts are very small. It is not contributing to the bank’s growth….”
However, Mamta Shankar, economic advisor at DoNER, indicated the new policy would be friendlier towards the micro, small, and medium enterprises. While there’s enthusiasm about the industrial growth potential, B Paul Muktieh, chairman and managing director of North Eastern Development Finance Corporation, said “It is important to be enthusiastic, but one needs to be realistic too.”
