Emerging North-East India

Economically and socially inclusive development strategies

November 2015

KPMG.com/in © 2015 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. © 2015 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Foreword

North-East India, covering 8 per cent Shillong. Apart from focussing on The report highlights the potential of India’s land and 3.1 per cent of improving the connectivity in the sectors for development, India’s population is the country’s region, this year the summit will infrastructure and connectivity Gateway to South East Asia. The also highlight the opportunities needs and proposes a number of integration and development of the that improved connectivity will initiatives that need to be taken up region is critical for India’s continued bring about and work towards an in sectors such as tourism, energy, progress. With over 5,300 kms of action plan creating an enabling education and environment besides international borders, it is apparent environment in areas like energy, skill connectivity infrastructure. I would that any development strategy for development and environment. like to thank KPMG in India for the region must necessarily include partnering with us and publishing The Prime Ministers recent visit strategies for collaboration; and this report. to Bangladesh laid great impetus connectivity must be a central theme on improving connectivity with While preparing the report, we have of the strategic road map. North-East India. The renewal of the received substantial help from a First North-East connectivity IWT protocol, MOU on the use of number of organisations. In particular, summit: FICCI had organised the Chitagong and Mongla ports and we would like to acknowledge the First North-East Connectivity Summit starting of bus services at key tourist support we received from Tata in November 2014 which was entry points such as Guwahati are all Consultancy Services who helped in attended by senior representatives moves that will give a major boost to reviewing the initial draft. from the Government of India, State connecivity. Similarly, the framework I am sure the North-East is going Governments, industry, diplomats, agreement on regional transport to become a leading contributor to foreign delegates and multilateral signed recently with Bangladesh, India’s national growth. agencies like the World Bank and the Bhutan and Nepal will facilitate easy United Nations Economic and Social movement of goods and passengers The only question is how soon can Commission for Asia and the Pacific to and from the North-East region. we make it happen. (UNESCAP). North-East Implementation Agency: The summit addressed a number Many well intended plans and of issues pertaining to the strategies have been made for current economic situation in the region and as a result we see North-East India, trade potential substantial progress in many areas between North-East India and ofthe region. If the full measure ASEAN countries, development of success was not achieved, it is of a North-East industrial corridor, because implementing agencies development of roads, railways, were not in sync with the plans. It airports, inland waterways and power is therefore of pertinent importance sector development. A number that we develop a plan to strengthen of infrastructure projects were the implementation capacity. identified such as the North-East I feel this can best be achieved by Economic corridor, inland water setting up a North-East Regional transport, North-East ring road, Trans Project Implementing Authority, himalayan highway . which will not only handle funding Second North-East connectivity of the projects but also put together summit: To take stock of the a team for hands-on monitoring of gains since the last summit and to each project, coordinating with state propose a way forward for thorough governments and all other relevant development of the region, the agencies, which will implement and Ranjit Barthakur second North-East Connectivity monitor each vertical with select Chairman Summit is being organised in private sector partners. FICCI North-East Advisory Council

North-East, the land of seven We, at KPMG, are extremely sisters, is a serene and ageless pleased to work with FICCI on this picture of lush hills, with a prevailing knowledge paper, which we plan culture unmarked by modernisation. to release at the second North- Unfortunately, its picturesque beauty East Connectivity Summit being is often clouded by instances of held in Shillong. Focussing on the political unrest that keep making opportunities and required enablers news every other day. Despite in the North-East, the report has regular disruptions, the region has been developed based on the initial immense potential that, if utilised in study by FICCI and the secondary the right manner, can put North-East research by KPMG in India. The aim India on the national as well as the is to provide a thorough analysis global map. that can be used by investors and policymakers to develop action plans, This report, Emerging North-East which can help trigger growth in the India - economically and socially inclusive development strategies, region. prepared jointly by KPMG in India and FICCI, aims to highlight the prospects which can be explored. The north-eastern region has the capability to develop as a self- sustaining economic unit of the country, while also contributing towards building a new and improved India, in line with the present government’s aspirations. The publication provides an in-depth analysis of the current state of affairs and the potential of two areas where the region’s comparative advantage is visible tourism and energy. It presents ideas that can act as an impetus for policymakers and government officials to push for further development in the region. We have also identified

areas of improvement and provided recommendations that could help bridge the gap. The report highlights growth enablers, such as infrastructure, education and skill development, environment and policy initiatives, which need to be

worked on in the interest of progress. Further, the efforts that have set the ball rolling in the past year the smart Ambarish Dasgupta city initiatives, the Look East policy Partner and Head and the BBIN initiatives have also Management Consulting, been discussed. KPMG in India

© 2015 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. © 2015 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Message

North-east India has great potential key challenge. Clearly, we need for development and could well more action on the ground and a become the growth engine that coordinated effort by the government will give the next big push to the and the private sector is perhaps the Indian economy. We believe that the need of the hour. Above all, we need North-East could be transformed to identify an implementation model into an economic corridor connecting that works for the region. India, Myanmar, Bangladesh and This report makes an attempt to the ASEAN countries. The benefits highlight the opportunities that the of such a transformation would be region represents while presenting multifaceted, impacting not only some ideas for enabling inclusive India but the entire sub region, growth. paving the way for integration of India’s North-East with the economic I hope the report serve its purpose mainstream. as a catalyst for thought. The first North-East Connectivity Summit, held in November 2014 had highlighted the connectivity and infrastructure requirements to achieve the transformation. During the last one year, we have seen a lot of forward movement towards removing connectivity and developmental bottlenecks. Major investments in infrastructure have been announced, projects such as the Trilateral Highway are nearing completion and connectivity within the region has seen Dr. A Didar Singh significant improvements. However, Secretary General implementation still remains a FICCI

Executive Toursim Energy Infrastructure summary

05-10 11-16 17-22 23-32

• Introduction • Overview • Overview • Overview • Developments • Proposed ideas • Proposed ideas • Proposed ideas during the last one year • Road map for development

Education Environment Policy India at initiatives 75: Projections for the North-East

33-38 39-44 45-46 47-48

• Overview • Overview • Overview • Improved connectivitiy • Proposed ideas • Existing strategies • Recommended for tracking climate policy initiatives • Growing trade change • Sector focus • Proposed ideas

Executive summary

Introduction

The North-East region has great efforts by individual states. The potential to develop not just as a self- long tourism journey can start sustaining economic unit of India but with simple, doable steps such also contribute to the success story as: creating a North-East platform of the country, which is reflected by for coordinated action, developing the Prime Minister’s focus on this destinations, creating tourism zones, region. involving local people and the private sector. The stretch boasts of fertile land and water resources, an ideal habitat Each ministry of the Union for horticulture, and a rich cultural Government is required to spend and natural heritage that could be at least 10 per cent of its budget explored further for development. in the North-East. The central sector fund for the year 2014-15 The emphasis on the comparative was INR4,84,532 crore.1 Therefore, advantages which lie in horticulture, about INR48,000 crore is available handlooms and handicrafts, rural to the region, in addition to each industries should not distract of the north-eastern states’ own one from the need to boost planned allocations. But so far, the manufacturing and create urban pool of unspent funds has been jobs. In fact, ’Make in the North- accumulating primarily because of East’ - The North-East’s trade with the lack of capacity to formulate South-East Asia needs further fundable proposals. development. Raw materials form a major part of its trade with Myanmar Therefore any development strategy and Bangladesh. Meghalaya, for for the North-East should start example, exports stone boulders, with an incisive inquiry into why limestone and horticulture products the region could not spend the to Bangladesh. These are processed earmarked money and use expertise and re-imported to India as stone from various institutions to prepare chips and cement. There still an array of doable projects. exists scope for value addition and To harness the full potential of these cross-border collaboration. There sectors, significant investments is potential for horticulture to will be required in upgrading the progress as the region produces regions infrastructure, education and quality turmeric and ginger, exotic skill development. All this has to be fruits like kiwi and passion fruit, done, keeping in mind the need for that grow easily. But this segment preserving the rich biodiversity of is languishing because marketing the region. In the end, development arrangements are inadequate. The comes down to implementation. absence of efficient cold storage The newly introduced initiatives of chains exposes cultivators to market the ministry for development of the fluctuations. Tourism, too, has not north-eastern region could energise made much headway due to poor 1. Indian Express Article Access date, http:// the process. Much depends, on the infrastructure development. There indianexpress.com/article/opinion/columns/make-in- proactive role of the states. are uncoordinated and fragmented the-northeast/ accessed November 2015

analysis of SWOT north-eastern states2

Strengths Weakness Opportunities Threats

• Several tourism attractions • Lack of proper connectivity. • Development of the • Overuse and such as Blue mountain A large part of the region handicraft industry commercialisation of eco- (Phawngpui - Mizoram), comprises of a hilly terrain • Flood management system sensitive zones could lead to Palak Lake (Mizoram), which makes the states to improve accessibility to depletion of resources and Kangla Fort (Manipur), dependent on the road certain parts of the states weakening of attraction3 Majuli (river island in network which is not during monsoons, which • Regional connectivity Assam) particularly good. Also can be developed as tourist concerns • Presence of an ethnic tribal lesser number airports spots3 reduce connectivity3 • Land banks and land culture each with unique • Linkages to existing availability if not addressed 3 customs and traditions. • Limited tourism tourism circuits and further will limit private sector • Numerous tea estates infrastructure facilities. circuit development investments3 Fewer accommodation • The north-eastern region facilities which are • Fostering coordination with • Migration of local people to has a very well performing insufficient to cope up with other states on developing urban areas for employment 4 gender development index the demand and are of poor tourism3 prospects. • Rich bamboo reserves quality • Trade can drastically be • Handloom and weaving is • Scarcity of skilled and improved by improving a skill acquired by the local unskilled labour infrastructural facilities and accessibility. community • Floods and landslides in • Abundance of natural monsoons make places resources like limestone inaccessible as well as water for • Laws in the state like land 3 hydropower potential acquisition and transfer • Ideal climate conditions need to align with a • Safe and clean, pollution vision for Public Private free environment. Partnership (PPP) and make the environment conducive for investments3 • Projects delayed in implementation causing development lags • Landlocked states.

2. KPMG in India and FICCI analysis 2015 3. http://mdoner.gov.in/content/report-studies-ner accessed on September 2015 4. http://www.researchgate.net/publication/228226356_Human_Development_in_North_East_India_-_A_Critical_Appraisal

Developments during the last one year

A number of initiatives have been Development Programme in North- and Nepal (BBIN) permit to travel taken in the last year and progress East (SARDP-NE), the Trans-Arunachal unobstructed through borders has been made. For example, the highway is being developed. Under between Bangladesh, Bhutan, India government has announced plans the BBIN initiative, a subregional and Nepal. Similarly, bus services of investing INR92,000 crore for Motor Vehicle Agreement that allows with Bangladesh have improved. development of roads and railways. buses and later private vehicles Under the “Special Accelerated Road with a Bhutan, Bangladesh, India

• Create a North-East tourism development authority to develop circuits, associated infrastructure, and Short-term steps market North-East tourism • Establish an ecotourism certification authority and identify eco-sensitive areas • Creating a portal for promoting homestays • Promote specific cultural circuits for international tourists • A thorough North-East tourism guide book and web portal • Implement North-East ecotourism guidelines, certification, and identify ‘eco-sensitive’ areas • Focus on capacity building, and skill development in the tourism space based on anticipated demand. Long-term steps Tourism • Evaluate and rope in leading hotel chains to set-up hotels (2-5 star) in various regions in the North-East • Create convention facilities across major North-East cities to attract international exhibitions • Create linkages between circuits in different states • Focus on wayside amenities, emergency responses, medical facilities, mobile and internet connectivity in several circuits. Short-term steps • 25 per cent of power procurement from Bhutan should be allotted to North-East5 • Include Sikkim in the North-East power grid • Strengthen the link between the eastern and north-eastern grid • Adequate transmission capacity connecting North-East India with Bhutan should be put in place • Focus on regional small scale hydro policy.

• Set-up Shale Oil and Gas Authority dedicated to the North-East Long-term steps Energy • Facilitate land acquisition for growth of small hydro projects • Strengthen intraregional Transmission And Distribution (T&D) capacity and add more 400KV transmission lines • Take up PPP projects for off grid solar energy to electrify villages • Set-up projects like using solar eco train to connect environmentally sensitive areas like Kaziranga. Short-term steps

• Encourage formation of cooperatives and Self Help Groups (SHG’s) for commercial purposes of handlooms and handicrafts. • Training of handicraft artisans through existing vocational institutions/industrial training institutes/ polytechnics, etc. to bring about fruitful employment. • Training of artisans/SHG leaders/NGOs in capacity building.

Small scale Long-term steps Industries • Implementation of centrally sponsored schemes for the development of sericulture and the silk industry. • Catalytic Development Programme (CDP) five year plan should provide a thrust, inter alia, to the development of sericulture. • Design and technical upgradation in the handlooms and handicrafts sector.

5. Ficci Report 2014 First North-East Summit

• Create a project development authority on lines of the Delhi-Mumbai Economic Corridor for the North-East Short-term steps economic corridor • Identify core economic activities for each node and design a master plan for the same • Survey the North-East Ring Road, declare the project as a national project and allocate funds • Set-up a River Development Authority to implement a broad Inland Water Transport (IWT) project • Negotiate with Myanmar, Bhutan and Nepal for road connectivity • Dredging and channel stabilisation work of rivers Brahmaputra and Barak.

• Roads: Complete the proposed roads connecting Tawang and Tashigang, develop NH 53 (Imphal-Jiribam), Long-term steps Infrastructure Aizwal Champai as four lane expressways, Stilwell road from Ledo to Myitkyina, Tura-Jamalpur road and Sabroom-Chittagong road • IWT: Develop 20 ports in Brahmaputra and Barak with a township, industrial area rail and road connectivity • Airports: In the first phase operationalise six airports; Rupsi, Shella, Kamalpur, kailashar, Khowai and Tezu; six additional airports in phase II Short-term steps

• Revisit norms for granting permissions for setting up medical colleges and engineering colleges • Identify regions in North-East for setting up skilling centres, technical institutions, medical institutions through the hub-spoke model • Each ITI in the region should identify core courses of focus.

• Develop eight knowledge hubs across the region Long-term steps Education • Set-up one engineering college in each district through PPP/government funding and look at setting up a North-East Technical University • Set-up 29 medical colleges through government funding/PPP mode • Set-up a North-East Skill University with funding from the central government • Set-up seven centres of excellence to focus on important skill areas as hubs and develop smaller outreach centres to be linked to those hubs. Short-term steps • Draft a uniform environment policy across the North-East • Set-up joint management groups for creating a forest resource management plan and implementing the schemes • Social forestry initiatives near water bodies • Sustainable water usage plan focussing on inland water transport, fisheries and hydro power. Long-term steps Environment • Reassess the forest classification system on carbon trading involving North-East states • For conserving eco hotspots, create dedicated animal corridors, by creating overhead bridges/shifting roads.

Overview

Virtually unexplored, the North-East However, the region has so far offers distinct opportunities in almost been constrained from achieving its all major areas of tourism such as full potential due to lack of proper adventure, eco-tourism, wildlife, infrastructure (a big bottleneck being wellness tourism, tea tourism, the lack of adequate accommodation pilgrimage and cultural tourism. in the potential tourist destinations), inadequate marketing, poor brand With more than 220 ethnic groups perception and brand recall, travel with equal number of dialects,1 the permit procedures, scarcity of skilled region is one of the most culturally manpower and absence of a broad diverse in the world. Apart from this, tourism policy for the region as a the region also has a large number whole. of historical and religious sites of great significance. Its close proximity A number of opportunities exist to to the South-East Asian Tourism Hub develop the tourism potential of the is another added advantage. North-East providing incentives to the private sector to get involved in a major way, creation of regional and international circuits and shaping skilled manpower for the industry.

1. Walk through india, http://www. walkthroughindia.com/location/north-east- india-an-unexplored-slice-of-paradise/

Current status of tourist arrivals in several circuits.4 Quality of tour Tourist information centres and travel services also varies Many states have tourist North-east accounts for less than between the states while in states information centres located in 1 per cent of India’s total tourist like Sikkim, they are very active and the important metros (particularly, arrivals.2 A huge chunk of tourism in handle tourist services efficiently, in Kolkata and Delhi). However the region comprises of domestic some other states, there is a lack of there are only limited number of tourists. These arrivals have seen a organised tour operators. Tourism information centres within the steady rise during the last few years. experiential facilities are generally states, Assam being the only state While foreign tourist arrivals have non-existent. Our analysis of the which has a good number of tourist also grown, the numbers are still existing tourism infrastructure in information centres3, located within very small, with less than a lakh of each state is given below. the state. None of the tourist foreign tourists visiting the region in information centres run by the 2013.3 Destination development state governments are equipped to In 2013, Sikkim attracted the Planned destination development provide thorough information about most number of foreign tourists initiatives have not been taken up the North-East region as a whole.5 (31,689) while Assam attracted in any of the tourist destinations. In the most number of domestic several of them, development has Wayside amenities tourists (4,339,485).2 Arunachal taken place in a haphazard manner There are hardly any wayside Pradesh, a state with immense with little focus on preserving and amenities while travelling to tourist tourism potential attracted only developing the core attractions destinations. This is an area which about 10,000 foreigners and about of the destination. It seems majorly needs improvement, 100,000 domestic tourists while necessary to take up planned particularly in view of the long states like Nagaland and Mizoram destination development projects travelling time within the state and attracted less than one lakh tourists encompassing tourist amenities, sparse population in many of the (foreign and domestic combined).3 recreation facilities, healthcare, etc. tourist circuits. The primary attractions for tourists in the North-East are nature/wildlife, Hotels and restaurants Destination amenities culture and religion. Several tourist destinations in the Destination amenities like souvenir region suffer from an inadequacy of shops, restaurants, recreation Status of tourism infrastructure accommodation facilities. Assam, facilities, etc. are lacking across the one of the most diverse states in region. Other facilities like banking Tourism infrastructure includes the region offers a large number of accessibility, accommodation, and money exchange facilities also rooms across various categories need to be put in place. restaurants, tourist information of hotels and resorts. The largest centres, tour and travel services, concentration of hotels and resorts tourist guides, shopping facilities, in Assam are in Guwahati and banking and money exchange, Kaziranga followed by Dibrugarh, tourist safety, tourism police, other Jorhat, Tinsukia, and Silchar3. Apart facilities and services. from this, a number of tourist There are major gaps in the lodges have come up in different tourism infrastructure in the region. locations across the state. It has Accessibility and smooth travel is an only one five star hotel in Guwahati area where huge investments are while four more are coming required. Barring a few destinations/ up . Apart from a few facilities cities, accommodation facilities in Guwahati and Kaziranga other are also a big challenge in terms accommodation facilities need to be of availability and quality. Wayside upgraded in terms of infrastructure, amenity centres are non-existent service quality, eco friendliness, etc.

2. Compiled by Datanet India from: Ministry of Tourism, Govt. of India. 3. Analysis conducted by FICCI, 2015 4. http://mdoner.gov.in/, Tourism Development approach and strategy 5. North-East Tourism Master Plan, commissioned by north-eastern Council and prepared by TCS

Proposed ideas

A number of tourism development is also funding a number of tourism projects funded by various projects in the region. Over and central ministries and state above the existing projects, certain governments are in various stages steps need to be taken to enhance of implementation or are being the sector further, which are listed planned. Apart from the Ministry of below. Tourism, the north-eastern Council

Tourism strategy for the region Marketing strategy • Target international tourists by promoting specific cultural circuits The tourism development strategy Since tourism in the North-East can based on Buddhism and the for the region should revolve around be classified as either for eco-leisure, tribal culture in states like Sikkim, key themes of nature, culture, and wellness, adventure, religious, or Nagaland, Mizoram, Arunachal leisure. Broadly the strategy could business, a specific marketing Pradesh and Manipur. consist of the following. strategy needs to be devised for each of the segments. Similarly, • Target the younger population • Focussed marketing strategy. focus should also be given to attract (both domestic and international) • Develop easily identifiable and international tourists. by promoting events like music attractive circuits around the key competitions, talent hunts, and Some of the key strategies that can themes of adventure sports. be adopted are: –– Nature, wildlife and adventure • Offer special discounts for off • Meetings Incentives, season and special interest –– Culture, religion and history Conferencing, Exhibitions (MICE) packages for tourists belonging to tourism: If one looks east beyond –– Leisure and sports the Visiting Friends and Relatives Kolkata to hold corporate off-sites, –– Wellness tourism. (VFR) category and intra North- business and sales meetings, East travellers. • Connect with key tourism hubs in very few places emerge that can India and neighbouring countries. accommodate large number of Promotion strategy: A number • Develop infrastructure people (over 300) in a business- of promotion strategies exist like leisure environment. Typically, it is roadshows, advertising through –– Hospitality concentrated in Guwahati, Siliguri TVs, sales promotions, public –– Connectivity. and Darjeeling. North-eastern relation, social media and personal • Identify and address ecological cities like Gangtok, Guwahati, selling. Each of them has its own concerns. Shillong, Dimapur and Agartala distinct benefits and so an effective should be developed as MICE promotion mix to achieve great • A North-East Tourism sites providing opportunities for benefits within the given budget Development Authority should . business seminars, conventions, constraints has to be devised be created under the North-East and meetings. Infrastructure Council, for implementation of Advertising: The various media facilities like hotels with meeting a region wide tourism master vehicles available for promotion of and video conference facilities, plan including development of the region are as follows: high speed broadband and intrastate circuits. convention centres needs to be • The Tourism Departments or developed in a big way. Along North-East Council should conduct with this, leisure facilities need to roadshows in other states and be upgraded in these locations. metro cities. This also includes participation in international trade • Weaving the legends: Connect and tourism fairs. various historical sites throughout the region to document the • Advertisements in dailies, history and legends associated weeklies, and fortnightly with them. These legends and publications in leading national stories can be woven together newspapers and magazines.7 to attract tourists to these 6. http://mdoner.gov.in/content/report-studies-ner destinations and also add to accessed September 2015 the experience in the form of 7. http://mdoner.gov.in/accessed September 2015 dramatic/artistic depictions.6

• Outdoor advertising at airports, Wellness tourism circuits are more attractive as important road junctions in the compared to individual destinations, targetted states and countries. Wellness tourism is ‘travel circuits can also help increase associated with the pursuit of • Television and radio advertising tourism revenue while adding to the maintaining or enhancing one’s showing video clips of the region. tourist experience. They also help in personal wellbeing.’9 prioritising development and focus • Tie up with international travel their efforts where it is required sites and magazines. The north-eastern states of India have the potential to increase the most, thereby developing less • Develop a broad North-East wellness travel. They possess scenic developed destinations. In the tourism guidebook, leaflets and locations which can be a home to a context of North-East India, circuits brochures, inflight brochures and vast number of spas, health resorts, should be developed around the 8 tourism maps. yoga retreats, and fitness centres, following themes. It is recommended that the services etc. • Nature and adventure of a professional service provider The local population of the north- • Culture and religious be engaged to devise an effective eastern states are known to be promotion strategy for the region. • International circuits with Bhutan, skilled in avenues that are centrally Nepal, Bangladesh, Myanmar and placed under wellness tourism but Social and digital media: In todays Thailand. migrate to look for employment interconnected world a fast way as adequate opportunities are not Planning circuits’ logistics and of reaching potential tourists is present in their home states. If this ease of movement are important effective campaigning through digital sector is developed, migration of considerations, which need to be media. The tourism sites/portals skilled resources can reduce and addressed properly to help enhance of the states must be redesigned local employment can increase. the viability of the circuits. The to provide necessary information entry and exit points of circuits to tourists at their fingertips. The Development of tourism circuits tdetermines their viability to a Tourism Departments must use great extent. The following possible social media avenues to advertise Developing and promoting well- circuits are proposed based on and promote tourism and also structured circuits is central to any current demand and potential for position their products based on the successful tourism promotion development. feedback received via this medium. strategy. Apart from the fact that

Proposed tourism circuit Strategy Strategy

Guwahati • Guwahati‐Shillong‐Kaziranga‐Majuli‐Jorhat The centre is expected to have • Guwahati‐Shillong‐Kaziranga‐Majuli‐Tezpur‐Bhalukpong‐Bomdilla‐ multimedia exhibition facilities,a Tawang amenity centre, ethnic food joints, • Guwahati‐Shillong‐Nongstoin‐Balpakram‐Tura‐Guwahati recreation centre, shopping plazas • Guwahati‐Manas‐Tura‐Balpakram‐Nongstoin‐Shillong‐Guwahati for handicrafts, handlooms, jewellery, artefacts, etc. North • North Lakhimpur/Itanagar-Ziro-Daporijo-Along-Dibrugarh North Lakhimpur may require a three Lakhimpur/ • North Lakhimpur/Itanagar‐Ziro‐Daporijo‐Along‐Passighat‐Roing‐ Tezu‐ star category hotel. Itanagar Dibrugarh Beautification of Itanagar city, • North Lakhimpur/Itanagar‐Ziro‐Daporijo‐Along‐Mechuka‐Dibrugarh development of the road leading to lake Ganga, development of rural tourism in surrounding Nyishi villages. Dimapur • Dimapur‐Kohima‐Wokha‐Mokokchung‐Mon‐Sibsagar Tourist amenities are required, • Dimapur‐Kohima‐Senapati‐Imphal‐Moreh including development of facilities around the Kachari ruins, a convention centre in Dimapur and a 3-4 star hotel. Silchar • Silchar‐Imphal‐Aizawl‐Silchar River front development is required • Silchar‐Haflong‐Shillong‐Guwahati including; walkways, arcades, lighting, • Silchar‐Haflong‐Aizawl‐Saiha-Blue Mountain‐Palak lake jetty, and a floating restaurant, boating and water sports, houseboats.

8. http://mdoner.gov.in/accessed September 2015 9. http://spamantra.in/gsws-2013-india-a-defining-moment-for-global-spa-and-wellness/accessed October 2015

Proposed tourism circuit

Strategy Strategy

Agartala • Agartala‐Silchar‐Shillong‐Guwahati Development of a tribal heritage village • Agartala‐Udaipur‐Dumbur Lake‐Unakoti‐Silchar at Khumlung, a tourist facility centre at • Agartala‐Dumbur Lake‐Jampui Hills‐Aizawl‐Silchar Kamalasagar with tourist amenities and • Agartala‐Jampui Hills‐ Aizawl‐Imphal (Silchar) an interpretation centre, convert part of Ujjayanta Palace at Agartala into a heritage hotel. Bagdogra/ • Bagdogra‐Kalimpong‐Gangtok‐East Sikkim‐Darjeeling‐Bagdogra Gangtok • Bagdogra‐Kalimpong‐Gangtok‐West Sikkim‐Darjeeling‐Bagdogra • Bagdogra‐Kalimpong‐Gangtok‐North Sikkim‐Darjeeling‐Bagdogra

Actions needed10

Proposed ideas Actions recommended

Strategy

• Create a North-East tourism development authority with a mandate for development of tourism North-East tourism development circuits, associated infrastructure, and marketing of the region. authority • The authority should have representatives from each state, North Eastern Council (NEC) and Ministry of Tourism.

• Institute North-East ecotourism guidelines and certification. Ecotourism • Notify eco sensitive areas as ’ecotourism only’ zones. • Set-up a model ecotourism project in each state.

• Thorough documentation of the history and the folklore. Cultural tourism • Create cultural themes and stories which can attract tourists. • Actively promote local culture and develop cultural exhibitions.

• Position Guwahati, Shillong, Gangtok, Dimapur and Agartala as MICE destinations and create necessary infrastructure. • Document and highlight the history and heritage associated with various places in North-East. Marketing North-East tourism • Promote specific cultural circuits for international tourists. • Focussed advertising campaigns through print, electronic media, inflight brochures, etc. • Broad North-East Tourism Guide book. • Develop a North-East Tourism web portal.

10. KPMG in India and FICCI porposed 2015

Proposed ideas Actions recommended

Circuit development

• Develop 2-3 star category hotels in Majuli, Nongstoin, Tura, Mokokchung, Mangan, Lachung (Sikkim). • Develop 3-4 star category hotel in Bomdila, Sibsagar, North Lakhimpur, Itanagar, Dibrugarh, Dimapur, Kohima, Moreh, Silchar. Development of hotels and resorts • Heritage hotel in Imphal, Agartala. • Development of eco-resorts at Balpakram, Zero, Daporijo, Passighat, Mayudia, Mehao Wild Life Sanctuary, Mechuka, Khonoma, Doyang, Mopungchuket village, Longwa Village, Shiyong, Loktak, Lamden, Silchar, Haflong, Jatinga, Blue Mountain (Phawngpui), Palak Lake, Rudrasagar, Narkelkunju island (Dumbur Lake), Tsomgo Lake, Kecheopari Lake, Yumthang.

• Convention facility with a seating capacity for 3000 people in Guwahati. • Convention centre in Dimapur with a seating capacity for at least 1000 people. Convention facilities • Small trade centre with convention and exhibition facilities in Moreh. • Convention centre in Agartala with a multiconference facility and an open air theatre, exhibition facilities.

• Provision of wayside amenities on all major roads (travel time between two wayside amenities should not be more than two hours). Overall circuit development • Development of recreation and refreshment facilities in all major tourist nodes and destinations. • Site development and beautification of historical monuments and natural attractions like caves, etc.

Suggested timelines11

Proposed initiative Suggested timeline

North-East tourism marketing initiative Ongoing

Setting up North-East tourism development authority 2016

Notification of ecotourism only zones 2016

North-East ecotourism guidelines and certification 2017

Model ecotourism project in each state 2017

Thorough documentation of history and folklore 2018

Develop 2-3 star category hotels in Majuli, Nongstoin, Tura, Mokokchung, Mangan, Lachung 2018 (Sikkim)

Develop 3-4 star category hotel in Bomdila, Sibsagar, North Lakhimpur, Itanagar, Dibrugarh, 2020 Dimapur, Kohima, Moreh, Silchar

Heritage hotel in Imphal, Agartala 2020

Develop 24 eco resorts 2020

Convention facilities in Guwahati, Dimapur, Moreh, Agartala 2020

11. KPMG in India and FICCI porposed 2015

Overview

Status of power generation Long-term forecast of electrical energy requirements in the North-East (MW) It has been found that the per capita power consumption (around 249kWh) 2021 - 22 2031- 32 in the North-East is low as compared Arunachal Pradesh 177 365 to the national average of 778kWh1. In spite of this and the fact that the Assam 2,534 5,033 North-East has an installed capacity 2 of about 2905MW the region still Manipur 497 1212 suffers from power shortages. The main factors contributing to this are Meghalaya 596 1112

a. low plant load factor Mizoram 352 723 b. weak connectivity with the eastern grid and a limited carrying capacity Nagaland 271 554

c. distribution capacity. Sikkim 176 341

Tripura 472 913

North-East 5,075 10,253

Source: Central Electric Authority (CEA) 2014

1. http://timesofindia.indiatimes.com/city/guwahati/Power-rich-North-East-consumes-far-less-electricity- than-rest-of-the-country/articleshow/13310078.cms accessed September 2015 2. http://www.swaniti.com/wp-content/uploads/2015/03/Swaniti-Initiative_Report-on-NER.pdf, Multi Sectorial analysis of growth opportunities for north east region

Available potential in the region: Total identified potential (Hydropower) Having various perennial rivers and water bodies, the region has great power generation opportunities, especially for hydropower in the states of Arunachal Pradesh, Sikkim and Meghalaya.3 The total hydropower potential of the region is estimated at over 58971MW.4 The spill-over benefits for the region can be channelised for the development of infrastructure such as roads and railways, communications and electricity supply to remote hilly areas, resulting in better quality of life.5 Source: CEA 2014

A number of incentives are also Capacity yet to be developed (Hydropower) available for power development in the region. For example, under the Mega Power Policy of the central government, the qualifying threshold capacity of 350 MW for setting up hydropower plants in the region and for availing the special benefits thereof is lucrative compared to the capacity for the rest of the country, which is 500MW.6 The Government is encouraging investment in power for the private sector .More than 16,000 MW of electricity has been allotted to private players for development.6 North-East India has a substantial potential for renewable energy from solar power units (particularly in Assam), wind energy (in Meghalaya, Nagaland, Mizoram, Arunachal Pradesh) biogas and small and micro hydropower projects. Source: CEA 2014

3. www.mdoner.gov.in 4. http://mdoner.gov.in/node/1306 5. FICCI Report 2014 First North East Summit 6. http://planningcommission.gov.in, Development of Power Sector in north- eastern region as accessed September 2015

Power: Key challenges and way forward

Resettlement and rehabilitation Transmission and distribution issues • Due to dispersed demand • The land acquisition situation in the region, the per-unit is difficult due to inaccurate or cost of transmission in the incomplete date of land ownership. north-eastern region is higher compared to other parts of • Sustainable resettlement options the country. For example, should be conceptualised by central the associated transmission and state governments. system for evacuation of Environmental concerns Kameng (600MW) power was estimated INR1,100 crore • Because of unlike biodiversity which is about 50 per cent in the north-eastern region, of the cost of the generation getting clearance from the project. Ministry of Environment and • Further, difficult terrain, Forests (MoEF) has become a hostile weather coupled with challenge in the recent past. lack of qualified manpower • The state government and makes the situation worse the Ministry of Power should and results to inadequate check and justice for genuine development of Transmission cases so that they get faster and Distribution (T&D) system clearances from the MoEF. facilities in the north-eastern Riparian issues states, adversely affecting the reliability of power supply to • Most of the river systems the consumers. of North-East India are • To overcome this issue, the transnational. For example: the Union Government can Brahmaputra River originates provide a centrally sponsored in Tibet, flows into India and scheme support interstate and ends in Bay of Bengal after intrastate transmission and traversing Bangladesh. distribution projects. • Full potential of the river • Incentives can be introduced stream cannot be utilised due by the state government to to inadequate agreements, develop T&D system. and disputes regarding water sharing. Physical infrastructure • The central government, in consultation with the state • Power projects generally governments could put in require massive infrastructure place a mechanism to resolve backing, especially roads to outstanding border and share transport heavy equipment and allocation issues. helicopters to transport smaller • International water sharing equipment. issues also need to be • Power sector requirements resolved through dialogue with needs further prioritisation the neighbouring countries to for roads and highway ensure a mutually beneficial development in this region, arrangements. and deployment of helicopters.

Proposed ideas

An estimated 50,000MW of but is delayed due to various might not only fulfil the immediate hydropower potential remains reasons. The commercial operation problem at hand but could actually untapped due to environmental of this project along with the create a power surplus in the region.8 concerns and various other reasons Palatana Project would make an Further other existing projects are apart from substantial possibilities additional 1,475MW of power also being pursued to improve the for gas-based and coal-based available to the region, which might scenario as highlighted in the table thermal generation.7 The thermal not only fulfil the immediate problem below. power project at Bongaigaon is at an at hand but could actually create a advanced stage of implementation, power surplus in the region. which

Projects Actions recommended

• Address security related issues and help ensure speedy completion of the project. Bongaigaon thermal power plant • Develop IWT-based coal transportation systems for cost effective transportation of coal. • Long-term coal linkage from Bihar and Jharkhand.

• Speedily commission third unit of the project. Tripura thermal power project • ONGC should ensure quality of gas supplied to the project.

• Address the safety concerns and make the necessary changes in the design parameters as Lower subansiri hydro electric suggested by the expert panel. power project • Measures for downstream impact mitigation.

• Address safety and environment concerns before construction begins. Debang multipurpose project • Make design changes if necessary.

• Objective environment and economic cost-benefit analysis for each project. Other hydro projects • Address environmental and safety concerns at the design stage. • Get local and downstream population onboard during the planning phase.

• The state government should resolve security issues in the Bongaigaon-Purnia Section. Ultra mega transmission project • Power grid to help ensure speedy implementation.

7. http://web.worldbank.org/archive/website01062/WEB/IMAGES/PAPER_6_.PDF 8. FICCI Report 2014 First North East Summit

Over and above for the existing Sourcing power from Bhutan Small hydropower projects, certain steps need to be Under the 2006 agreement on taken to enhance the sector further, Small and mini hydropower cooperation in hydropower with which are listed below. generation is gaining importance in Bhutan, India has developed over the world over as their impact on the Transmission 1,400MW of hydropower capacity in environment is slight and they have the neighbouring country10. Under A large number of hydropower smaller budgets and implementation the agreement, India plans to generating stations are expected time frame. The constructions of develop 10,000MW of hydropower to start functioning in the north- Small hydro power (SHPs) do not capacity in Bhutan by 2020. Upto eastern region, during the twelfth disturb the local habitat unlike large 90 per cent of the hydropower is and thirteenth plan period. These hydropower projects. The North-East proposed to be exported to India. could be a major source of power has a large number of perennial river systems which can be harnessed to to the states and create substantial Sikkim may be included in the set-up small and mini hydropower surplus power which will need to North-Easter Region grid be evacuated. Apart from the large stations catering to the needs of transmission capacity to evacuate Sikkim is included in the NER for the local area. While many potential power from the region, an adequate purposes including the benefits locations have been identified for system strengthening could be under the North-East Industrial and setting up small hydropower projects required within the North-Eastern Investment Promotion Policy, etc. the actual progress on the ground Region (NER) to help ensure that the However, in case of power, Sikkim has been nominal. To give a boost North-East is able to benefit from is included in the eastern regional to small hydro, a regional small the increased capacity. Therefore, grid, thus depriving the North-East of hydropower policy with provisions it is important that transmission the substantial Hydropower Potential for engaging PPP partners and development in the NER states is that the state possesses. As Sikkim addressing issues of land acquisition, also taken up simultaneously with is a part of the North-East for almost power evacuation, etc. should be put the development of the hydropower all practical and economic purposes, in place. projects.8 The following transmission it should be included in the North- capacity addition projects may be East regional grid. Shale oil exploration taken up in the immediate future. To exploit the massive shale oil and Solar energy • Rangia/Rowta Pooling Station- gas reserves in Assam and Arunachal Azara 400kV D/c line (high According to estimates by TERI, Pradesh in an environmentally capacity) Assam has 240-260 clear days and sustainable manner, a Shale Oil and 4.4-5.6 KWh of solar power potential Gas Authority should set-up. The • Azara-Byrnihat 400kV D/c line per square meter per day while authority should pool resources (high capacity) Tripura has a similar potential.26 The available with leading public sector • Byrnihat-Silchar 400kV D/c line option of solar power should be oil and gas companies to focus (high capacity) used for off grid power generation on developing a cost effective • Silchar-Surajmaninagar 400kV D/c and electrification of remote villages. technology for shale oil and gas line (high capacity) In environmentally sensitive areas exploration. like Kaziranga, the reliance on fossil • Surajmaninagar-Melriat 400kV D/c fuel should be reduced by adopting line (high capacity) solar power. Innovative ideas like • Melriat-Imphal 400kV D/c line solar trains and solar carts for jungle (high capacity) safaris, etc. should be explored. • Imphal-Kohima 400kV D/c line In addition to this it is proposed that (high capacity) at least 1000 villages in Assam and • Kohima-Mariani 400kV D/c line Tripura should be provided off grid (high capacity) power through solar Photovoltaics (PV’s) units. • Mariani-Silapathar Pooling Station 9 400kV D/c line (high capacity). 9. Development of Power Sector in the north- eastern region. http://planningcommission.gov. in as accessed September 2015 10. http://www.feedthegrid.net/as accessed September 2015

Action needed11

Proposed ideas Actions recommended

• Strengthen the link between the eastern and north-eastern Grid. Transmission • Strengthen intraregional transmission and distribution capacity by building more 400 KV transmission lines.

• 25 per cent of power procurement from Bhutan should be allotted to the North-East. Bhutan power • Adequate transmission capacity connecting North-East India with Bhutan should be put in place.

Sikkim • Include Sikkim in the North-East Power Grid.

• Take up PPP projects for off grid solar energy, to electrify 200 villages in Assam and Tripura. Solar energy • Policy decisions to reduce dependence on fossil fuel in environmentally sensitive areas. • Explore the possibility of a solar eco-train to connect environmentally sensitive areas like Kaziranga.

• Regional Small Hydropower policy to facilitate growth of small hydropower projects. Small hydropower • Facilitate land acquisition and power evacuation from small hydropower projects.

Shale oil & Gas • Set-up Shale Oil and Gas Exploration Group with experts from ONGC, OIL India, etc.

Suggested timelines11

Proposed initiative Suggested timeline

Strengthen link between eastern grid and north-eastern Grid 2016

25 per cent of power procurement from Bhutan to be allotted to North-East 2016

Include Sikkim in North-East Power Grid 2016

Policy for reduction of dependence on fossil fuel in environmentally sensitive areas 2016

Regional Small Hydro policy to facilitate growth of small hydro projects 2017

Set-up Shale Oil and Gas exploration Group 2017

PPP projects for off grid solar energy, to electrify 200 villages in Assam and Tripura 2018

Strengthen intraregional transmission and distribution capacity by building more 400KV Transmission Lines 2020

11. KPMG in India and FICCI porposed 2015

Overview

One of the key developmental Added to this, inadequate bottlenecks in the North-East is infrastructure within the region that of infrastructure. While a lot of and the lack of connectivity with progress has been achieved during the neighbouring countries has the past few decades, the current contributed considerably to the slow status is far from adequate. pace of growth in the region. The region is connected by rail and road with the rest of India only through the 22km-wide Siliguri Corridor. A lack of connectivity through our neighbouring country, Bangladesh has made connectivity between most parts of the region and mainland India rather difficult and convoluted. For example, the distance between Agartala and Kolkata through the Silliguri corridor is three times than through Bangladesh.1

1. http://thediplomat.com/2013/11/geographys- curse-indias-vulnerable-chickens-neck/as accessed September 2015 as accessed September 2015

Status of road development Road density in North-East India Being inexpensive and easier, road States Road density/1000 Density/1000 transport is an important mode of sq. km population travel in hilly areas in comparison to other modes of travel. Arunachal 196.96 13.77 The state highways and Major Assam 2936.51 7.83 District Roads (MDRs) are extremely Manipur 739.11 6.98 important for facilitating intrastate movement of people and goods. Meghalaya 438.67 3.89 Mizoram 292.11 6.35 Nagaland 1345.32 10.27 Sikkim 263.95 3.17 Tripura 3026.23 9.09 India 965.73 2.77

Source: 1 Material supplied by TRW, M/o Road Transport and Highways; 2 Annual Report, published by M/o Road Transport and Highways

Status of railways Air connectivity

North-East India has about 2,600 Intraregional air connectivity is still poor. In fact, the number of functioning km of railway lines, but till now only airports in the region has reduced from 17 to 11.3 three state capitals are connected by The status of the airports is as follows: railways, with most of the lines lying in the states of Assam and Tripura.2 Airport Present status Connecting places Rest of the states are still waiting for the arrival of railway tracks to come Lokpriya Gopinath Bordoloi even after the announcement of International (LGBI) Airport, Operational International connectivity major railway projects by the Railway Guwahati Ministry With an intention to connect Lengpui, Mizoram Operational Daily air connectivity all state capitals of the region, inside state most of the projects are running Umroi, Shilong Operational behind schedule. The hilly terrain of the region makes it difficult and Baljek, Shilong Under construction expensive to set-up rail networks in Imphal, Manipur Operational the region. As a result of this, hilly states such as Arunachal Pradesh, Agartala, Tripura Operational Manipur, Meghalaya and Mizoram Pakyong, Sikkim Underway are still deprived of a railway facility. Rail connectivity with Bangladesh Source: FICCI Report 2014, First North-East summit which existed before 1947 has ceased to exist, although a new A greenfield airport has been proposed near Itanagar, the environmental 4 connectivity through Tripura is clearance for which was received in April 2010. proposed, the erstwhile railway line from Mahishahan in Karimganj District of Assam to Sylhet also needs to be revived.

A number of railway projects are 2. http://www.observerindia.com/cms/sites/ 4. http://www.arunachalpradesh.gov.in/csp_ap_ delayed due to various reasons orfonline/modules/analysis/AnalysisDetail.html portal/pdf/Announcement/new-greenfield- such as the difficult terrain, security ?cmaid=62152&mmacmaid=62153as accessed airport-site.pdf accessed September 2015 situation, land acquisition related September 2015 issues, etc. 3. https://en.wikipedia.org/wiki/List_of_airports_ in_India as accessed September 2015

Inland Water Transport (IWT)

Inland water transport can be a viable, cost-effective alternative compared to the high cost of expanding other modes of transportation.5 Two of the national waterways flow through the region: NW2 (Brahmaputra) and NW6 (Barak). However, the sector is underutilised. In Assam, the contribution of IWT to the overall cargo movement stands at 3 per cent which is less by a big margin compared to Bangladesh which is at 32 per cent.6 There is only one IWT terminal (Pandu, Assam) which meets the minimum requisite criterion of a terminal, and therefore significant investments will be required to develop the sector. In addition to developing the physical infrastructure, protocol route issues with Bangladesh need to be revisited and resolved.

5. Gateway to the ASEAN India’s North-East frontier FICCI report 6. http://mdoner.gov.in/content/inland-waterways- ner accessed September 2015

Developments during the last year

Investment in infrastructure: During the last year a sub-regional • Agreement between Bangladesh • The government has announced Motor Vehicle Agreement had Submarine Cable Company plans of investing over INR92,000 allowed buses and later private Limited (BSCCL) and Bharat crore, for the development of vehicles with a BBIN permit to travel Sanchar Nagar Limited for leasing roads and railways across borders between Bangladesh, of international bandwidth for Bhutan, India and Nepal. internet at Akhaura. • Under the SARDPNE (Special Accelerated Road Development Connectivity with Bangladesh: Connectivity with Myanmar and Programme) for the North-East, • Two bus services, Agartala-Dakha- South-East Asia INR35,000 crore is proposed Kolkata and Guwahati-Shillong- • Trilateral Highway: The 3,200KM to be invested to develop Dakha were flagged off during the long India-Myanmar-Thailand the Trans-Arunachal highway visit. (IMT) trilateral highway which and for connecting all district forms a part of Asian Highway 1,9 headquarters by a two-lane • An agreement was signed has been taken up as a priority highway (about 6400km). granting access to Chittagong and Mongla Ports.To benefit from the and work is now going on at • A new rail network is connectivity with the Chittagong a fast pace. An agreement to being created in addition to Port, the following developments operationalise the highway is strengthening the existing are proposed: expected soon. network at a cost of INR57,000 • Kaladan Multimodal Project: The crore.7 –– The railway link from Agartala to Akhaura railway junction in government has sanctioned a • Investment plans are also Brahmanbaria in Bangladesh is revised estimate of INR2904 being drawn up by the telecom, expected to be completed by crore for the Kaladan Multimodal power, civil aviation and shipping middle of 2017. project which is expected to ministries. provide connectivity between –– This will be accompanied with Mizoram and Sitewe Port. Work BBIN (Bangladesh, Bhutan, India, India constructing a bridge on the project is expected to be Nepal) Initiative : across river Pheni to link up completed by 2016. The BBIN initiative has identified South Tripura district with connectivity as the priority, including Chittagong Hill Tracts. smooth electrical grids, shared • The Protocol on Inland Water access to road, rail, air and port Transit and Trade was renewed. infrastructure, and ease of travel.

Proposed ideas

Integrated economic development North-East ring road corridor Some of the earlier government The sub-regional grouping that has and chamber reports have proposed been formed between Bangladesh, the development of a ring road India, China and Myanmar Economic connecting all the north-eastern Corridor (BCIM-EC) has the objective states. to develop stronger trade benefits and improve the citizen to citizen relationship. The BCIM can serve 7. The Economic times , http://articles. as a catalyst to generate enormous economictimes.indiatimes.com/2015-07-15/ economic benefits in areas of trade, news/64449620_1_prime-minister-narendra- energy, transport, infrastructure and modi-north-east-chief-ministers communication.8 8. http://www.idsa.in/idsacomments/ NorthEast%20inBCIM-EC_ RBhattacharjee_171014 9. http://www.newindianexpress.com/world/ India-Thailand-International-Highway-Opens- in-November/2015/09/02/article3006971.ece, September 2015

The proposed route for the ring road is as follows:

Gangtok Rangpo Alipurduar Srirampur Bongaigaon Udalguri Nalbari

Itanagar Seppa Chanditop Arnatula Kalkatag road

Ziro Along Pasighat Dambuk Tezu Wakro Miao Joypur

Darlawn Churachandpur Imphal Ukhrul Tuensang Mokokchung Wakching Sonari

Tuiral Aizwal Mamit Teliamura Karimganj Shilong Nongstoin Rongjeng Phulbari Dhubri

This should give a significant boost to the pace of development in the region.

Source - FICCI Report, First North-East summit

Trans-Himalayan highway

To provide alternate connectivity While Bhutan has already agreed to the region, it is proposed that a in principle for connectivity with Trans-Himalayan Highway be built Arunachal Pradesh through the to connect Arunachal Pradesh with Tashigang-Lumla route, permission North India via Bhutan, Sikkim and is pending for a 15km section Nepal. The road is expected to follow in the Tashigang-Lumla section. the following route: Bomdila Connectivity in the Bhutan-Sikkim -Tawang-Lumla-Tashigang-Thimpu- and Sikkim-Nepal ections will have to Gangtok-Gangtok-Kathmundu-Patna. be negotiated. The length of the road will be about 2000km.10

Road Length of stretches to be developed Moreh-Imphal-Silchar-Karimganj-Sylhet 500 Guwahati-Ledo-Myitkyina-Kunming (Stilwel Road) 516 Guwahati-Tura-Jamalpur-Dhaka-Petrapole-Kolkata 223 Aizwal-Silchar-Agartala-Sabroom-Chittagong 611 Aizwal-Champhai 188 Total 2038

Source - Gateway to the ASEAN India’s North-East frontier, FICCI reprot, 2015

10. FICCI analysis conducted 2015

Airports

There are 12 airports and airstrips Regional airline operators can are a number of other airports in the in the region which are currently operate here and aim to bring about region that need to be developed as not in use.11 It is proposed to significant change in the NER. well, which are listed below. develop airports which can open While the airports in Arunachal Since Guwahati is a major airport, we up and increase tourism, such that Pradesh are being developed by recommend setting up a common development of air connectivity can the government, three greenfield maintenance workshop there, which act as a strategic move to positively airports are already proposed at could be used by all airlines on a impact the north-eastern economy. Gangtok, Kohima and Itanagar. There payment basis.

Airports that need to be developed in phase I

State Airports Total investment envisaged (INR crores)

Assam • Rupsi 750 • Shella Mizoram • Tuirial 375 • Kailashar Tripura • Kamalpur 1125 • Khowai

North-East part of the smart city mission

The government’s ’Act East’ policy The concept of a ‘Smart City’ is practices around urban planning, was considered while announcing aimed at enhancing the quality of life public private partnership (PPP), and the list of 100 cities and towns from by helping to enhance the availability policies. It includes leveraging IT and across the country for the smart city of core infrastructure needed for sensors into different aspects of the initiative in India decent living in urban areas. city, such as transportation, water management, waste management, Eight cities from the North-East Concept of smart cities smarter municipal management were selected for the mega project and planning. Some of the other namely Pasighat (Arunachal Pradesh), The key focus of the government elements include: Guwahati (Assam), Imphal (Manipur), in the smart city initiative is to Shillong (Meghalaya), Kohima improve the lives of citizens. They (Nagaland), Namchi (Sikkim), Agartala tap a range of interventions-ICT (Tripura) and Aizawl (Mizoram). and digital technologies, leading

Objectives Adequate water supply Assured electricity supply Sanitation, including solid waste management Efficient urban mobility and public transport Affordable housing, especially for the poor Robust IT connectivity and digitalisation Good governance, especially e-Governance and citizen participation Sustainable environment

11. https://en.wikipedia.org/wiki/List_of_airports_ Safety and security of citizens, particularly women, children and the elderly in_India as accessed September 2015, FICCI report 2014, First North-East Summit Health and education

In the approach to the Smart Cities Mission, the objective is a clean and sustainable environment, providing core infrastructure and application of ‘smart’ solutions. As per the government’s smart city guidelines, the core infrastructure elements in a smart city would include:

e-Governance and citizen services Energy management • Public information, grievance redressal • Smart meters and management • Electronic service delivery • Renewable sources of energy • Citizen engagement • Energy efficient and green building. • Citizens city’s eyes and ears • Video crime monitoring.

Waste management Urban mobility • Waste to energy and fuel • Smart parking • Waste to compost Smart • Intelligent traffic management • Waste water to be treated • Integrated multi-modal transport. • Recycling and reduction of Construction solutions and demolition (C&D) waste.

Water management Others • Smart meters and management • Telemedicine and tele-education • Leakage identification, preventive • Incubation/trade facilitation centres measures • Skill development centres. • Water quallity monitoring.

Source: http://smartcities.gov.in/writereaddata/SmartCityGuidelines.pdf June 2015

How can the North-East leverage Skill development centre: With a • Regulatory framework and on the smart city mission: strong English speaking population policies to define and facilitate The North-East faces a number of and the government’s focus in innovative citizen service delivery distinct advantages and challenges leveraging the North-East for models. which it must consider while Information Technology Enabled • Access to innovative, low-cost, implementing the smart city Service (ITES)/Business Operations participatory, and sustainable initiatives: Plattform (BOP)/ Knowledge financing models, especially in Processing Outsourcing (KPO ) non-revenue sectors. Terrain: Thge region being sector as part of the Digital India essentially a hilly terrain, it is initiative, setting up tele-education, • Interdependencies with other difficult to set-up large sewerage, online education, skill development national missions, such as, water treatment and waste centres seems like a must for this the Swachh Bharat Abhiyan, management plants. One has to opt initiative. Digital India, Atal Mission for a distributed model instead of for Rejuvenation and Urban Project development authority: centralised treatment plants. Transformation, Housing for All, Setting up a North-East Regional etc. Connectivity: As seen in the earlier Project Implementing Authority can sections, setting up railways and help in accelerating development. • Prioritisation of highest impact roads in a hilly terrain has its own ICT enabled infrastructure and In addition, the following initiatives services projects, which should challenges. However, cities need should be taken by the North-East: to be connected to facilitate trade, also include social, economic, education and healthcare. Since • Develop core skills needed to plan technical and financial parameters. and implement smart initiatives. the region has large lakes, one can Innovative financial models that

consider having a seaplane facility for can be considered for smart city

transport. development are:

Project examples Project model Source of revenue Source of capital

Smart parking PPP model Parking charge, advetisement Private player investment revenue

Metro; Bus Rapid Transit System PPP model Ticket, smart cards, advertisment Private player investment, municipal (BRTS) revenue funds, infrastructure bonds

Solid waste management; Taxable revenue; sale of energy and Municipal funds, state funds, Viability Sewerage O&M model recycled waste Gap Funding (VGF), infrastructure bonds

Recreational gardens and parks O&M model Entertainment tax; tickets Private player investment, green bonds, municipal bonds

Digital infrastructure PPP model Mobile app charges, service tax Private player investment, municipal funds, state funds, VGF

City wide Wi-Fi PPP model Data charges Private player investment, municipal funds, state funds, VGF Private player investment, green bonds, Solar panel installment O&M/PPP model Sale of power energy efficiency bonds, municipal funds, state funds

Actions needed12

Proposed ideas Actions recommended

Integrated economic development corridor

North-East Economic Development • Create a Project Development Authority on lines of the Delhi Mumbai Economic Corridor. Corridor • Initiate discussions with Myanmar and Bangladesh to establish linkages and develop complimentary economic corridors in those countries. • Develop the Trans-Meghalaya road and rail linkage, connecting Guwahati to Dhubri, via Shillong and Tura. Integrated Transport Corridor • Agartala-Sabroom-Chittagong railway. • Imphal-Moreh-Tamu railway. • Silchar-Aizwal-Champai railway. • Jawaharnagar-Darlon railway.

Industrial and Economic • Detailed feasibility study of the identified nodes. Development Nodes • Identify core economic activities for each node and design a master plan for the same. • Develop nodes under a suitable PPP framework. Roads • Carry out a complete survey of the existing roads which can become a part of the North-East North-East Ring Road Ring Road and survey for new road connecting Miao (Arunachal Pradesh)-Joypur (Assam). • Declare the project as a national project and allocate funds accordingly. • National Highways Authority of India (NHAI) may be asked to implement the project. • Complete the proposed road connecting Tawang and Tashigang in Bhutan (permission pending Trans-Himalayan highway for 15km (Tashigang-Lumla section). • Negotiate Bhutan-Sikkim connectivity (Lumla-Thimpu-Sangkari-Nathang valley/Juluk). Negotiate connectivity through Nepal. • Develop NH 53(Imphal-Jiribam ) as a four lane express way. • Develop Stilwell road from Ledo to Myitkyina. Core networks • Develop Tura-Jamalpur road. • Develop Sabroom-Chittagong road. • Develop Aizwal Champai road as a four lane road. Inland water transport • A River Development Authority to implement a thorough IWT project. • Dredging of river Brahmaputra and Barak to ensure an actual LAD of at least 2.5 meters. • Uninterrupted navigational aids along the entire route. • Establish permanent channel stabilisation works. • Develop 12 river ports in Brahmaputra and eight river ports in Barak. • Develop townships and industrial areas along with the ports. • Rail and road connectivity to the ports. Airports

• In first phase operationalise six Airports –– Operationalise Rupsi Airport with a runway extension for Boeing aircrafts Operationalise non-operational –– Operationalise Shella Airport as a regional hub to connect airports in Bangladesh and airports Nepal –– Operationalise Kamalpur, Kailashar and Khowai Airports as alternative airports with connectivity to Bangladesh. • Revive Guwahati Flying Club to develop a full-fledged aviation training facility. Capacity enhancement • Airport hotels in PPP mode in Guwahati, Imphal and Agartala. • Common Maintenance Workshop in Guwahati to be used by all airlines. Border townships • Expeditiously implement Manipur Government plan for border township in Moreh. • New border townships at Zokhawthar, Avankhung, Pangsau Pass, Akahura, Karimganj, Dawki, Gasuapara, Mankachar and Daranga. • Work with neighbouring countries to develop similar townships across the border.

12. KPMG in India and FICCI analysis 2015

Suggested timelines13

Proposed initiative Suggested timeline

Announce North-East economic development corridor 2016

Initiate discussions with Myanmar and Bangladesh to establish linkages and develop complimentary economic 2016 corridors

Set-up river development authority 2016

Start dialogue with neighbouring countries to develop similar townships across the border 2016

Operationalise Rupsi Airport with runway extension for boeing aircrafts 2018

Implement border township in Moreh 2018

Develop 50 economic development nodes 2020

North-East ring road 2020

Upgrade core networks of roads to national standards 2020

Develop 12 River ports in Brahmaputra and eight in Barak 2020

Operationalise shella airport as a regional hub to connect airports in Bangladesh and Nepal 2020

Operationalise Kamalpur, kailashar and Khowai Airports as alternative airports with connectivity to Bangladesh 2020

New border townships at Zokhawthar, Avankhung, Pangsau Pass, Akahura, Karimganj, Dawki, Gasuapara, 2020 Mankachar and Daranga

Agartala-Sabroom-Chittagong railway 2022

Imphal-Moreh-Tamu railway 2022

Trans-Himalayan highway 2022

Develop port townships 2022

Develop Trans-Meghalaya road and aail linkage, connecting Guwahati to Dhubri, via Shillong and Tura. 2025

Silchar-Aizwal-Champai railway 2025

Jawaharnagar-Darlon railway 2025

Dredging of Brahmaputra and Barak to ensure LAD of 2.5 metres Ongoing

13. KPMG in India and FICCI analysis 2015

Overview

While a number of quality Status of higher education institutions for higher education have come up in the region, primary and There are 40 universities/deemed universities and nearly 800 colleges 1 secondary education are still areas spread across the region. The number of colleges per lakh population is that require much improvement lower than the national average in all the north-eastern states combined 1 in terms of quality and outreach. except Manipur where it is marginally higher. The fact that many parts of In the area of college education the region have a hilly terrain with sparse population spread out over large too, while the number of colleges geographical areas has resulted in making access to higher education have grown significantly over the difficult for the rural population. As a result the gross enrollment ratio in years, several of them suffer from higher education is much lower than the national average. a lack of qualified and trained teachers, inadequate infrastructure, State No. of colleges Colleges/lakh people Average enrollment laboratories are not sufficiently equipped and there is a general lack Arunachal Pradesh 26 16 1227 of connect with job requirements. Assam 485 13 950 The courses being taught at colleges are very often outdated and have Manipur 79 26 1117 very little practical job related requirements built into them. Meghalaya 61 17 927

Mizoram 21 22 526

Nagaland 57 22 486

Sikkim 11 14 994

Tripura 39 9 1036

2. Analysis conducted by FICCI,2015 Source. Analysis by FICCI 2015

Technical education: Although Institutions offering diploma courses the region has over 40 engineering colleges and few very good State No. of institutions No. of seats institutions of technical education, Arunachal Pradesh 2 320 the demand far outstrips the Assam 12 1803 supply.2 As a result many students are forced to either migrate outside Manipur 3 285 the region or fall prey to dubious Meghalaya 3 440 institutions that have mushroomed Mizoram 4 480 there. Nagaland 3 285 Apart from engineering colleges, there are also about 34 other Sikkim 4 390 technical institutions offering Tripura 3 440 undergraduate and post graduate 34 4443 diploma courses in various streams.2 Source: Analysis conducted by FICCI 2015

Medical education: The region has State No. of medical colleges MBBS seats PG seats 11 medical colleges with an intake capacity of 1,176 at the MBBS level Assam 5 626 362 and 501 seats in the post graduate level. With only 2.45 per cent of Manipur 2 200 72 the country’s intake capacity in Meghalaya 1 50 20 medical colleges,2 the region suffers from an acute shortage of doctors Sikkim 1 100 22 and results in an impact on the healthcare system. 2 Tripura 2 200 25 There is therefore an urgent need 11 1176 501 for enhancing the medical education Source. Analysis by FICCI 2015 infrastructure in the region. The region also has a shortage of nursing and other paramedical practitioners. Given the high demand for nurses from the North-East in other parts of the country and the regional demand, there exists a huge potential for development of nursing and other paramedical education infrastructure.

2. Analysis conducted by FICCI,2015

Status of vocational education State No. of ITIs

Industrial Training Institutes Assam 28 (ITIs): In the North-East there are currently 63 ITIs of which 28 are Meghalaya 5 in Assam, with a total training Mizoram 2 capacity of about 5860 candidates per year under the Craftsman Tripura 12 Training Scheme (CTS). Additionally about 4230 candidates are trained Manipur 7 per year in a short-term Modular Nagaland 2 employable skills (MES) course through the ITIs. Thus the total Arunachal Pradesh 5 training capacity of ITIs currently is approximately 10,000 per year. In Sikkim 2 addition to this 14 new ITIs are also Total 63 being set-up.3 Going forward, the government plans to set-up 10 new Source. Analysis by FICCI 2015 ITI every year for next five years.

Demand for skilled manpower

For a region like the North-East the branded national names who programmes in this sector must with good agro climatic conditions, have opened their hospitals here. focus on organic cultivation, modern fertile well irrigated land and a large This region also has the potential tools for improving productivity, post- percentage of population engaged in to be developed as a healthcare harvest management and marketing agriculture, skilling in sectors related destination. To meet the increasing of horticultural products. to agriculture, food processing, tea, local demand and for development Automobile sector: A major mode horticulture and supporting non- of health tourism, the demand for of transportation from Assam and agricultural sectors is key to faster skilled healthcare professionals is other North-East states is via road. growth. The sectors in which a high expected to grow rapidly. With the setting up of the East- demand for skilled manpower is Handloom and handicrafts: West Corridor and four lanning of expected are listed below: Handloom weaving is a way of life the state highways, there can be a Construction: The demand for and intensely linked with the culture boom in road transporters in this skilled manpower can be seen in and heritage of the North-East. region. With the improvement of sectors like welding, electrician, Assam, has the highest number of road infrastructure, there can be a plumbing and tools and machinery looms in India’s, at over 13 lakh (46 demand for roadside mechanics near (auto mechanic) when infrastructure per cent of India total)4. In 2009-10, the highways. The auto mechanics projects for the development of the Assam produced 174 million metres may be able to find self-employment ’bridge’ between ASEAN and India of handloom fabric.5 Sualkuchi, a opportunities across the national and starts. town in Assam has earned the name state highways. of the Manchester of the East for its Tourism and hospitality: The silk products. Therefore, there is an North-East has a huge tourism urgent need to devise focussed skill potential and a number of renowned improvement programmes for the brands are already establishing their handloom sector. presence in the region. A number of five star hotels are also coming Horticulture: The NER is one of the up. This could boost the demand for richest reservoir of genetic variability skilled manpower in the industry. and diversity of different crops i.e. various kinds of fruits, different Healthcare: The people of the vegetables, spices, ornamental 3. Analysis conducted by FICCI,2015 Welding, Electrician, Plumbing and 4. http://journals.du.ac.in/ugresearch/pdf/A.%20 as well as medicinal and aromatic Tools and Machinery (Auto Mechanic) Aggarwal%20%201.pdf plants. The diversity for horticultural are generally part of the service 5. NSDC skill gap Study , North-East 2012 crops of this region has mainly 6. http://www.kiran.nic.in/pdf/publications/ industry. Apollo, Max Health Care been managed by local farmers, Diversity_of_Horticulture.pdf accessed and Narayana Hrudalaya are few of often women.6 Skill improvement September 2015

Proposed ideas

North-East India knowledge hub North-East technical university: Approach to skill development To help ensure uniform high quality TheNorth-East has a number of technical education across the The skill development initiative in quality education institutions and region, a North-East Technical the region must focus on few core has the potential to emerge as University should be set-up with areas in which the region has core a hub for education. The region central government funding. competencies or there is a potential has 40 universities and deemed for future development. universities, 11 Medical Colleges, Engineering college in every Centres of excellence for skill over 40 engineering colleges, 31 district: To make technical education development poly-techniques, one IIM, one IIIT, available to students in far-flung Tata institute of Social Sciences and areas of the region and to create It is proposed that seven centres a large number of colleges and other a conducive environment for of excellence on each of the above institutions.7 technology led economic growth, mentioned skill areas should be it is proposed that an engineering set-up in the region. The centres A number of cities have already collage should be set-up in each should be located in an area where emerged as hubs of quality district of the region, under a the most industrial/economic activity education and the institutions offer suitable PPP framework wherever related to the particular trade is education in a large number of feasible. happening. specialised fields. Regional technical education fund: Each centre of excellence may be The neighbouring countries of A regional technical education fund linked to smaller centres in other Bangladesh and Myanmar have should be created with contributions states of the region. For example, a growing demand for quality from the central and state a centre of excellence in tourism education. This provides the region governments, multilateral agencies, and hospitality located in Kaziranga, an opportunity to position itself as etc. The fund is expected to be focus Assam may be linked to smaller a hub for quality education in the on enhancing the capacity of existing centres in Itanagar, Shillong, Udaipur, entire sub region. The prevalence of technical education institutions and etc., thus developing a hub and English as the general medium of provide viability gap funding for new spoke model. instruction gives the region an added technical institutions. edge over many of the neighbouring The centres could be developed countries. Enhancing capacity for medical using the existing skill development education infrastructure in ITIs, other colleges Apart from attracting students from and universities. While each centre other states and the neighbouring It is proposed that the number of could have more than one trade, it countries, the region also needs medical colleges in the region should could focus on one specific trade to to be positioned as a destination be increased to at least 40 to reach a develop advanced level expertise. for investments in the education target of about one medical college The centre of excellence may be sector. While a number of private per ten lakh population. Similarly, developed by the central government sector investments have already the number of institutes for nursing in partnership with the state materialised, there is a potential and paramedical sciences should be governments and private parties for even greater investments. Also increased to at least 80 to achieve through a suitable PPP mechanism there is great opportunity for the a target of one nursing/paramedical while the spoke centres may be existing institutions and universities institute per 5 lakh population. This developed by the state governments. to collaborate with other such is not possible through government institutions outside the region. intervention alone. It is therefore Skill university suggested that a suitable PPP model Enhancing capacity for technical should be developed to attract An open Skill University may be education institutes private sector investment. Further developed to cater to the needs of those aspiring for higher vocational To meet the growing demand for the Medical Council of India should consider relaxing norms which do qualifications. The university would technical education in the region the offer B.voc, M.voc and PhD in following steps are suggested. not have a bearing on quality of education to facilitate faster growth skilling. Apart from catering to the of medical education in the region. aspiration for higher education of those opting for vocational education,

the university can also help in

7. Analysis conducted by FICCI,2015 bridging the demand supply gap for trainers in the region.

Upgrading industrial training institutes A model for PPP with ITIs for auto trade: The physical infrastructure is provided by ITIs, while the private partners provide the modern engines, gear boxes and Upgradation of ITIs may be taken technologically upgraded tools and equipment. Tata Motors dealers have also opened up in a phased manner through a a service station within the campus of an ITI so that the trainees get a hands-on PPP mechanism, where industry experience. partners are invited to invest Short-term and long-term programmes in ’Mechanical Motor Vehicle’, ’Diesel Mechanic’ in the upgradation of particular and ’Driving’ are conducted across the ITIs. The NCVT courseware has been upgraded by trades and also provide inputs for private partners (Tata Motors/Hyundai etc) to make it technologically advanced as per training. The model adopted for the the demand of the industry. automobile trade in some ITIs may be replicated in other ITIs across The existing ITI faculties are trained by private partners on the upgraded course contents. the region and also across other Student mobilisation is handled by the ITI authorities, trades with suitable modifications. while the National Curriculum of Vocational Training (NCVT) certificate Essential elements of the model of the Government of India is awarded on successful completion are given below. of the training.

Actions needed8

Proposed ideas Actions recommended

Higher education

• Develop 10 knowledge hubs across the region, (each hub to focus on a specific area of learning). North-East knowledge hub • Create adequate urban amenities in the education hubs. • Package for Health Care Sector on the lines of NEIIPP.

• Set-up North-East Technical University. • Set-up one Engineering college in each district through PPP/goverment funding. Enhancing capacity for technical • Create a North-East Technical Education fund, to enable fast paced development of technical education institutions. • Set-up 29 more medical colleges through government funding/PPP Mode. • Revisit norms for granting permission for setting up medical colleges.

Skill and Vocational education

Centres of excellence for skill • Set-up seven centres of excellence to focus on important skill areas. development • Develop smaller outreach centres across the region to be linked to the centres of excellence.

Skill university • Set-up a North-East Skill University with funding from the central government.

• Each ITI in the region should identify core courses on which to focus. Upgrading ITIs • Facilities for the core courses should be upgraded with private sector support in a PPP arrangement.

Suggested timelines8

Proposed initiative Suggested timeline

Create a North-East technical education fund, to enable fast paced development of technical 2016 institutions.

Set-up North-East technical university 2017

Set-up one engineering college in each district 2018

Set-up a North-East skill university with funding from the central government. 2018

Develop 10 knowledge hubs across the region 2020

Set-up seven centres of excellence to focus on important skill areas. 2020

Upgradation of all it is 2020

Set-up 29 more medical colleges through government funding/PPP mode. 2022

8. KPMG in India and FICCI analysis 2015

Overview

The North-East holds great It is important to develop water significance from an ecological management, forest development, and evolutionary point of view. This and sustainable livelihood, carbon- region is rich in biodiversity and trading policies which could provide has the largest number of endemic benefits in the form of hydropower, species of plants and animals as agriculture, transportation, and compared to any other part of India.1 tourism. These benefits which This region represents a confluence could accrue at both regional and of the Indo-Malayan and Indo- local levels, may, in turn, directly Chinese bio-geographical realms.1 accelerate growth and poverty reduction. While it is well recognised that this region is a biodiversity hotspot, information and data around biodiversity, distributional patterns, population dynamics, relationships between landscape variables and species composition, impacts of habitat fragmentation, and the role of biological corridors are sketchy or unavailable, except for very few 1. Lok Man S. Palni. “Conservation of Himalayan species. This information is vital for bioresources:An ecological, economical and determining management strategies evolutionary perspective”, Nature at Work for the use of biodiversity resources. Ongoing Saga of Evolution, 2010.

Existing strategies for tackling climate change

The Government of India, identifying 4. National water mission - to The missions form the core of the need to address the gargantuan help ensure integrated water the action plan, representing challenge of climate variability and resource management in order to multipronged, long-term and change, launched a National Action conserve water, reduce wastage, integrated strategies for achieving Plan on Climate Change (NAPCC) and determine more equitable goals in the field of climate change. in 2008. This national strategy distribution. All national missions have been for climate change outlines eight 5. National mission for a ’Green approved by the Prime Minister’s national missions running until 2017 India’- to enhance ecosystem Council on Climate Change addressing mitigation o as well as services (e.g. carbon and are at different stages of adaptation to the impacts of climate sequestration and storage, implementation. change.2 hydrological services, and Subsequently, the Ministry of The eight missions with special biodiversity), along with Environment and Forests (MoEF) relevance to adaptation to climate provisioning services (e.g. fuel has issued directions to all states to change are: wood, small timber, and NTFPs).4 prepare state-specific State Action Plans on Climate Change (SAPCC), 1. National solar mission to promote 6. National mission on sustainable in which the states outline state the development and use of solar habitat - to make the level measures in mitigation and energy for power generation habitat sustainable through adaptation of climate change. and other uses with the ultimate improvements in energy efficiency objective of making solar power in buildings, management of solid North-East Indian states have drafted competitive with fossil-based waste management and modal their respective specific statehave 5 energy options.2 shift to public transport. drafted their respective specific 2. National mission for enhanced 7. National mission for sustainable State Action Plans on Climate energy efficiency - enhancing agriculture - to increase the Change (SAPCC) and submitted the energy efficiency by mandating adaptive capacity of the same to the Ministry of Environment specific energy consumption agricultural sector to climate (MoEF) and Climate Change (CC) reduction in large energy- variability and change through the for endorsement. All of them, consuming industries. development of climate-resilient other than Assam’s have been crops, expansion of weather endorsed. Assam’s State Action 3. National mission for sustaining insurance mechanisms, and Plan on Climate Change is under the himalayan ecosystem - to agricultural practices. consideration. Implementations of conserve biodiversity, forest cover, 8. National mission on strategic the plans have also begun and are in and other ecological values in the varying stages. Himalayan region.3 knowledge for climate change - to gain a better understanding of climate science, impacts and challenges.

2. http://www.c2es.org/international/key-country- policies/india/climate-plan-summary 3. “Maharashtra sets up cell to increase water use efficiencvy”, PTI-The Press Trust of India Ltd., October 7 2010 Issue 4. Ministry of Environment and Forests-National Mission for a Green India 5. “CM to chair environment safeguard mission”, The Times of India, August 31 2008 Issue.

Proposed ideas

Adaptation and mitigation • Need to increase forest-based Disaster preparedness strategies for climate change biomass production. Promote • Need to strengthen existing bamboo, cane and other Non- machinery for monitoring of Policy measures: timber forest products (NTFPs) norms and guidelines. • Promotion of green infrastructure which impact the environment • Need to strengthen the disaster and development of climate less. An improved ecosystem response strategies. friendly designs for the urban could help augmenting incomes of those dependent on them. sector in water supply, sewerage, Sensitisation: urban housing. • Linking of forests through • Sensitisation of governmental corridors enabling species • New norms for building machineries about climate change migration. codes-government buildings to such that they can deal with it in mandatorily follow green building • Need to form agencies for an appropriate way. norms in line with the Energy resolution of man animal conflicts. Conservation and Building Code Sensitisation of masses for enabling • Need to modernise existing of the Bureau of Energy Efficiency, them to adapt to climate change and agencies mandated with Government of India.6 accept the implementing machinery protection of forest resources. promoted by the government and • Policy for procurement of • Need to take immediate other multilateral agencies. environment friendly vehicles in measures to halt encroachment government departments, national through measures for Nature policy for the states parks like Kaziranga, etc. rehabilitation of the affected • Promotion of alternative and people. Need to reclaim areas To help ensure preservation of the ecofriendly technologies in energy surrounding the crucial biosphere extremely fragile natural heritage of and power generation. and sensitive wildlife zones. the region, all developmental plans must naturally be moderated with • Need to incentivise the use of • Need to develop alternative routes the concerns for ecological integrity. green technology by private sector which do not impact national It is therefore recommended that as well as by local populace. parks like Kaziranga. the state governments of the region • Policy support for restoration must put in place a well thought out Sustainable livelihoods of the old wetlands and stream nature policy. Some key aspects that flows, mainly in the urban areas, • Need to adapt agriculture, the nature policy must address are: to enhance the drainage of the horticulture and pisciculture to • Identify ecological ’red lines’ flood water and reduce water modern times through funding which must not be crossed in logging.7 research and development. the process of economic and • Dependence on rains for Forests, environment and industrial development. agriculture needs to be brought biodiversity • Provide fiscal/other incentives for down through modern irrigation nature conservation. • Enhancing the quality of existing techniques. forests and upgradation of • Create facilities for recording, • Crop yield needs to be improved the degraded forest through documenting and preserving the through modern techniques. regulation and monitoring of bio diversity of the region. • Promotion of the use of invasive species and identification • Facilitate research, and make ICT, rainwater harvesting, of non-native species that can it profitable to be ecologically drip irrigation, post-harvest survive climate change and be sensitive. beneficial to the ecosystem, infrastructure, cold storages, management of insects and other development of crop insurance, pathogens, adoption of short etc. can be some areas of focus. rotation species, preventing forest • Capacity building for communities fragmentation by conserving dependent of agriculture needs to contiguous forest patches, eco be taken up in a big way. restoration of degraded open • Strengthening of institutions forests, and restoration of grass involved in improving agriculture land.6 and its allied areas and those 6. http://www.vasudha-foundation.org/ involved in sustainable livelihoods 7. http://www.nicra-icar.in/nicrarevised/ for the rural community.

Water management strategy hill states are legally owned by to improve their livelihoods through the community.8 It is therefore increases in local productivity, and The North-East receives plenty of proposed that forest management collaboration between the different rainfall and has a large number of in the region should be aligned to stakeholders.10 water bodies, yet many parts of the involvement of the community. This region suffers from water shortages could involve: North-East carbon sink during the winter, while other a. Set-up joint management groups parts suffer from floods. Efficient Any natural or manmade reservoir comprising of community leaders management of our water resources that absorbs more carbon than and representatives from the is not only critical for preserving it emits is a carbon sink. The forest department. biodiversity, it is also critical for substantial forest cover available determining food security and b. Implementing centrally funded in North-East India, Myanmar and agriculture. The following key steps conservation schemes through Bhutan has been playing such a are suggested for efficient water joint management groups and role. With proper management, this management: indigenous institutions. region could be converted into one c. Empowering and enabling of the most powerful carbon sinks of • Propagation of forests and social the world and be retained as a very forestry initiatives to arrest soil traditional institutions and building modern management capacities important biodiversity hotspot of the erosion and to preserve the water world. retention capacity of the soil. within them. This way the forest departments will have viable Shifting of major roads away from • Rain water harvesting should be partners to craft new landscape hotspots made mandatory under building management systems that rely on bylaws of the urban areas across networks of villages.8 the region. National and other major highways d. Communities will develop their passing through important • Appropriate technology should be own resource management plans biodiversity hotspots like Kaziranga used to allow percolation of rain that address conservation and is a major cause of concern. As far water into the soil through paved livelihood issues.9 as practicality is concerned all such surfaces like roads and courtyards. e. Support community efforts highways should be shifted away • Reach of irrigation should be to intensify land productivity, from the core bio diversity hot spots. extended to at least 75 per cent in especially on sites where terracing Wherever it is not possible to do the plain areas. and irrigation are possible.10 so, dedicated corridors which are • Concrete steps should be taken not disturbed by the traffic should f. Agroforestry systems with a mix be developed by creating under to replace jhum cultivation with of commercial products, including terrace cultivation. passes/over bridges to mitigate the timber, fibre, spice, and medicinal risk faced by animals. A thorough • Agriculture departments along plants, could also help to generate assessment of all such roads should with irrigation and flood control income, taking the pressure off be carried out immediately. departments should hold steeper slopes and help reduce capacity building exercises to jhuming. increase awareness about water conservation. Biodiversity and carbon trading

• In addition to the above, in order To maintain and further develop the to facilitate the sustainable use of biodiversity wealth of the region, a water resources, a thorough long- number of activities could be further term plan should be drawn up for explored. This includes assessment IWT, fisheries development and of capacity-building needs in the hydro power development. forest departments, and a focus on protected area management Community led forest plans. Many such areas do not management have management plans, or their The importance of community effectiveness is very limited. Besides involvement in forest management strengthening these systems, other has gained widespread acceptance potentially advantageous activities include cataloguing of flora and globally, and is critically important 8. Development and Growth in Northeast India - in the NER, where the vast bulk fauna and making the information http://www.worldbank.org/reference/ of forests, particularly in the widely available, research in the use 9. http://nerlp.gov.in/ of plants, working with communities 10. http://www.worldbank.org/reference/

Action needed11

Proposed ideas Actions recommended

• Promotion of green infrastructure, environment friendly vehicles, eco-friendly technologies in power generation, restoration of old wetlands. • Enhancing quality of existing forests, increase forest-based biomass production, promote Adaption and mitigation strategies bamboo, cane and other NTFPs, linking of forests through corridors, modernise existing for climate change agencies, halt encroachment. • Address livelihood issues by modernising agriculture, use of ICT, rainwater harvesting, drip irrigation, post-harvest infrastructure, etc. • Disaster preparedness and sensitisation.

Nature policy for north-eastern • Create a consultative mechanism involving all the north-eastern states to come up with a states uniform nature/environment policy across the region.

• Social forestry initiatives near water bodies. • Rain water harvesting in urban areas. Water management • Extend reach of irrigation to 75 per cent. • Capacity building exercise on water conservation. • Sustainable water usage plan focusing on IWT, fisheries and hydropower.

• Set-up joint management groups for forest management. • Implement schemes through the joint management group. Community led forest management • Capacity building of indigenous institutions. • Forest resource management plan to be developed by the community through joint management group. • Agro forestry initiatives.

Biodiversity and carbon trading • Reassess forest classification system through a consultative mechanism involving all the north-eastern states.

• Carry out a thorough assessment of all roads passing through biodiversity hotspots. Shifting of major roads away from biodiversity hotspots • Either shift the roads or create dedicated animal corridors, by creating underpasses/over bridges.

11. KPMG in India and FICCI analysis 2015

Policy initiatives

Overview

That government policy has a direct the region, to help ensure greater main reasons behind this. However, bearing on economic development government spending in key sectors it is felt that the lack of a holistic and in case of disadvantaged regions like physical and social infrastructure, approach to policy making in the like the North-east, a proactive with the aim of providing access region has been an equal, if not a government policy can play a major to the markets in South-East Asian greater reason behind the less than role in giving direction and pace countries. impressive economic growth of the to the growth of business and region. So far results have not shown much investment. Since the late 1990s the progress. It has been suggested that Some of the policy initiatives that Government of India has undertaken a lack of consistency in the policy may be considered are listed below. a number of important policy environment has been one of the initiatives to attract investment into

Recommended policy initiatives

Policy for investment promotion subsequent dilutions, including benefits to small enterprises from partial withdrawal of excise the region and focussing on sectors North-East Industrial and duty benefit, etc. has now been of comparative advantage. It is also Investment Promotion Policy: suspended, when some results recommended that sectors like The NEIIPP which came into effect were beginning to be visible and infrastructure, education, healthcare in 2007 offered a wide array of investors’ interest was increasing and environment related projects benefits including a 30 per cent visibly. should be brought under the ambit capital investment subsidy, income of the policy. tax exemption, excise duty refund, It is recommended that the policy interest subsidy, etc. The policy may be reinstated with suitable after going through a number of modifications to give greater

Supporting small businesses and to drastically reduce the permissions trade centres, revisiting border entrepreneurs and paperwork required to set-up trade agreements, reviewing RBI • Local entrepreneurs should businesses, secure incentives and to regulations should be taken up be assisted with financial and run the businesses. immediately. administrative support, especially Land acquisition for industry Biodiversity: To establish the region for the marketing sector so that as a biodiversity zone, cooperation improved infrastructure can be While land acquisition across the between the authorities and utilised well for the economic country is becoming increasingly stakeholders in North-East India, growth of local people. difficult and time consuming, the Myanmar, and Bhutan seems to • A North-East Innovation Fund may situation in the North-East is even be of paramount importance. It is be created. By way of innovation, more complicated as in the hilly proposed that a subregional dialogue a new arena of development and states and some other areas in on establishment of an international growth can come out. Assam land transfer is restricted biodiversity zone should be started immediately. The primary objective • Artisans and the handicraft by statute to only scheduled tribes. of the dialogue process should be to industry needs to be promoted The states of the region need to identify a workable model for joint through a well-coordinated work with the central government management of the biodiversity programme with assistance from and industry to find a way so that resources. the central government. North- industrial growth is not restricted eastern products should get a while protecting the interests of Myanmar focus: Increased focus place in national and international tribal people. should be given to develop a trade exhibitions to get further relationship with Myanmmar. The Act east policy promotion and branding. These border trade agreement with activities can also have a spill-over Decentralising dialogue: While Myanmar should be revisited to 1 effect on the tourism industry. international relations dialogue is see if the number of tradable items expected to continue to be handled through barter system can be Ease of doing business by the central ministry, some increased. Also, connectivity to the North-East can be improved if we India ranks 134th among 189 amount of interaction, particularly the adjoining provinces should be have direct flights from other parts countries, according to a World Bank of India to Myanmar. report on the ease of doing business. allowed at the local level in the On ease of starting a business, it interest of operational ease. The ranks even lower: 166.2 The situation following initiatives are proposed to in the north-eastern states of India facilitate such local level interactions. is even worse. Although a number of Facilitating border trade: To incentives are available for starting facilitate border trade with businesses in the region, often neighbouring countries, some of 1. FICCI Report 2014 First North East Summit the procedure and paper work the policy initiatives that had been 2. http://economictimes.indiatimes.com/news/ involved in securing these incentives economy/indicators/indias-world-bank-ranking- discussed in earlier policy initiatives on-ease-of-business-will-improve-further-arun- diminishes the efficacy of the like simplification of paper work, jaitley/articleshow/49564615.cms accessed incentive schemes. There is a need helping of traders at the border October 2015

Implementation of the Social impact plan aims to bring about • Sustainable livelihood fundamental changes in • Improved formal and vocational education the regions socio economic • Improved connectivity can give access to better social amenities structure. It is expected • Access to power can improve the quality of Life that by 2021-22, the region • Access to vocational education and employment can have a positive will emerge as one of the impact on the society. fastest growing regions of the country and will contribute Economic impact substantially to the national • Investment of over INR5 lakh crore is expected to have a huge trickledown GDP. The region may become a effect hub of connectivity, trade and • Direct employment for around five million people commerce for the South-East • Smooth trade with neighboring counties and ASEAN Asian subregion and become a • Exponential growth in manufacturing major player in the subregional • Exponential growth in services led by tourism. economic development. The regions integration with the Environmental impact national economic mainstream • Reduced impact because of cleaner modes of transport. can be complete and the • Environmentally conscious tourism. region may be India’s gateway • Conservation of biodiversity. to the east in the true sense of • Clean energy sources like solar, wind, etc. the word. • Planned development can help put environmental protection mechanisms in place.

Improved connectivity Growing trade

By 2021, the region is expected to Flights can connect remote parts With the proposed development plan, be smoothly connected, with the of the region and also all South- it is expected that the North-East rest of India, neighbouring Countries East Asian countries. Benefits may may account for at least 30 to 40 per and ASEAN. It seems possible become visible through improved cent of India’s trade with Myanmar, to drive down to Bangkok from farm productivity, rising GSDP, Bangladesh and Bhutan.1 The region Guwahati in a little over 48 hours. international trade, a growing may also account for a substantial River navigation can enable ships manufacturing base and a strong percentage of India ASEAN Trade. from the Kolkata Harbour to come service sector. With 10 border townships, border directly to Pandu and Badarpur. trade and joint manufacturing activities are expected to flourish.

Rail Road Inland water ways Airports • All state capitals • North-East ring road • Primary mode of goods • 24 operational airports • Neighbouring countries. • Asian highway transport • Connected to Dhaka, • Bangladesh, Bhutan, • Transit through Sylhet, Bangkok, Myanmar. Bangladesh. Yangon. Sector focus

Energy like TISS, IIM, IIT, IIIT and others may Environment have institutionalised collaboration The North-East may be producing with neighbouring countries. These Focus may grow on environmental close to 10,000MW of surplus institutes may emerge as centres protection and safeguard power, part of which can be sold of excellence and produce leading mechanisms are expected to be to neighbouring countries. Shale research work. Private investment in place by 2021. Several green Oil Exploration is likely to have in education is also likely to pick up, businesses including ecotourism can begun by then in Assam and invariably affecting the industry. provide a further fillip to conservation Arunachal Pradesh thereby meeting efforts. The region may be able to a substantial part of India’s fossil Vocational education and skill improve its agricultural output in a fuel requirements. We also hope development sustainable manner. The fresh water to see substantial developments in resources available in the region renewable energy like solar and wind Vocational education is expected is expected to be harnessed and energy. Coal mining in all the north- to be institutionalised and students conservation efforts may begin to eastern states may be regulated will be able to make a career choice show results. and guided by a broad mining policy. while still in school. A network of While energy (power, oil and gas) skill development centres and a Skill Tourism is expected to become one of the University is expected to provide most important industry in the a major fillip to skill development Improved connectivity, and a region, the abundant availability of activities. The region may also marketing campaign can give a major energy may also spur growth in the emerge as a major supplier of skilled boost to tourism and it is expected manufacturing sector. manpower, particularly for service that the region may be firmly sector industries. Increasing local established as a major ecotourism Education demand due to higher economic destination of choice for high end activity can help ensure that only tourists from across the world. The The North-East is expected to higher skilled work force may North-East may account for about 10 emerge as an education hub for the migrate from the region and per cent of India’s foreign exchange entire South-East Asia. Institutions command higher salaries. earnings from tourism.

1. KPMG in India and FICCI analysis 2015 © 2015 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 49

About KPMG in India About FICCI

KPMG in India, a professional services firm, is the Indian Established in 1927, FICCI is the largest and oldest apex member firm of KPMG International and was established business organisation in India. Its history is closely in September 1993. Our professionals leverage the global interwoven with India’s struggle for independence, its network of firms, providing detailed knowledge of local laws, industrialisation, and its emergence as one of the most regulations, markets and competition. KPMG has offices rapidly growing global economies. across India in Delhi, Chandigarh, Ahmedabad, Mumbai, A non-government, not-for-profit organisation, FICCI is the Pune, Chennai, Bengaluru, Kochi, Hyderabad and Kolkata. voice of India’s business and industry. From influencing We strive to provide rapid, performance-based, industry- policy to encouraging debate, engaging with policy makers focussed and technology-enabled services, which reflect and civil society, FICCI articulates the views and concerns a shared knowledge of global and local industries and our of industry. It serves its members from the Indian private experience of the Indian business environment. and public corporate sectors and multinational companies, drawing its strength from diverse regional chambers of KPMG International commerce and industry across states, reaching out to over 2,50,000 companies. KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 155 FICCI provides a platform for networking and consensus countries and have more than 155,000 people working in building within and across sectors and is the first port of member firms around the world. call for Indian industry, policy makers and the international business community. The KPMG Audit practice endeavours to provide robust and risk based audit services that address member firms’ clients’ strategic priorities and business processes. KPMG’s Tax services are designed to reflect the unique needs and objectives of each client, whether firms are dealing with the tax aspects of a cross-border acquisition or developing and helping to implement a global transfer pricing strategy. In practical terms that means, KPMG firms work with their clients to assist them in achieving effective tax compliance and managing tax risks, while helping to control costs. KPMG Advisory professionals provide advice and assistance to help enable companies, intermediaries and public sector bodies to mitigate risk, improve performance, and create value. KPMG firms provide a wide range of Risk Consulting, Management Consulting and Transactions & Restructuring services that can help their clients respond to immediate needs as well as put in place the strategies for the longer term.

Acknowledgements

FICCI KPMG in India • Biswajit Chakrabarty • Soumya Nath • Kaustav Bhagavati • Laura Myers • Puthuparambil Vinod • Subhendu Adhikary • Abrity Basu • Anirban Chatterjee • Debopam Raha • Pradip Bhowmick • Jiten Ganatra • Darshini Parikh • Rajesh Patel • Sharon D’silva • Aamir Munshi

Nitin Atroley Biswajit Chakrabarty Partner and Head Head Sales and Markets Ficci North-East T: +91 124 307 4887 T: +91 361 273 3010 E: [email protected] E: [email protected] Ambarish Dasgupta Partner and Head Management Consulting T: +91 33 4403 4095 E: [email protected]

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